WASHINGTON — Refunds totaling more than $1 billion may be waiting for one million people who did not file a federal income tax return for 2008, the Internal Revenue Service announced today. However, to collect the money, a return for 2008 must be filed with the IRS no later than Tuesday, April 17, 2012. The IRS estimates that half of these potential 2008 refunds are $637 or more. Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim a refund within three years, the money becomes property of the U.S. Treasury. For 2008 returns, the window closes on April 17, 2012. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund. The IRS reminds taxpayers seeking a 2008 refund that their checks may be held if they have not filed tax returns for 2009 and 2010. In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans. By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2008. Some people, especially those who did not receive an economic stimulus payment in 2008, may qualify for the Recovery Rebate Credit. In addition, many low-and moderate-income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2008 were: •    $38,646 ($41,646 if married filing jointly) for those with two or more qualifying children, •    $33,995 ($36,995 if married filing jointly) for people with one qualifying child, and •    $12,880 ($15,880 if married filing jointly) for those with no qualifying children. Individuals Who Did Not File a 2008 Return with a Potential Refund State    Individuals    Median    Potential Refund Alabama    18,400    $641    $15,738 Alaska    5,800    $641    $5,952 Arizona    29,000    $558    $24,913 Arkansas    9,600    $620    $8,152 California    122,500    $595    $112,201 Colorado    20,500    $589    $18,909 Connecticut    12,500    $697    $13,893 Delaware    4,200    $644    $3,784 District of Columbia    4,000    $642    $3,791 Florida    70,400    $650    $66,974 Georgia    35,800    $581    $30,661 Hawaii    7,600    $714    $8,307 Idaho    4,700    $541    $3,878 Illinois    40,800    $692    $40,712 Indiana    21,800    $664    $19,590 Iowa    10,600    $658    $9,295 Kansas    11,500    $631    $10,084 Kentucky    12,300    $640    $10,501 Louisiana    20,500    $662    $18,859 Maine    4,000    $579    $3,248 Maryland    24,600    $641    $22,591 Massachusetts    23,900    $699    $22,957 Michigan    33,300    $660    $30,903 Minnesota    15,200    $584    $12,772 Mississippi    9,900    $591    $8,254 Missouri    21,600    $593    $18,213 Montana    3,600    $599    $3,192 Nebraska    5,100    $623    $4,371 Nevada    14,500    $619    $13,381 New Hampshire    4,300    $733    $4,518 New Jersey    31,300    $716    $31,185 New Mexico    8,000    $611    $7,420 New York    60,300    $686    $61,240 North Carolina    30,800    $558    $24,997 North Dakota    2,000    $625    $1,895 Ohio    36,400    $622    $31,018 Oklahoma    16,800    $620    $14,787 Oregon    18,500    $527    $14,819 Pennsylvania    38,700    $695    $35,565 Rhode Island    3,400    $674    $3,040 South Carolina    12,200    $547    $10,158 South Dakota    2,300    $669    $2,234 Tennessee    18,400    $626    $16,130 Texas    96,200    $689    $97,057 Utah    7,800    $536    $6,676 Vermont    1,700    $647    $1,410 Virginia    30,800    $624    $28,670 Washington    29,900    $705    $32,138 West Virginia    4,300    $687    $4,068 Wisconsin    14,100    $592    $11,885 Wyoming    2,600    $773    $2,919 Grand Total    1,089,000    $637    $1,009,905   Source: IRS Clergy Financial Resources https://www.clergyfinancial.com Clergy Financial Resources is a national accounting and finance organization serving churches and clergy since 1980. They have an unparalleled tax expertise on the complex issues associated with clergy tax law, clergy taxes, clergy compensation and church payroll. Clergy Financial Resources is a valuable resource for clergy, churches and denominations

Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.

This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.

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