Income Tax Owed

If you file your missing return by the deadline, the IRS may send you a refund.

If you have not filed a tax return for 2006, you should - The IRS estimates $1.3 billion is owed. You need to act fast to claim any unpaid refund that may be due to you.

Does the IRS Owe You Money?

In a March 2nd announcement, the IRS stated that almost 1.4 million people could be due a refund on their 2006 tax return if they file it by April 15th, 2010. A total of $1.3 billion is owed to American taxpayers who have not yet filed their 2006 tax returns.

You should be aware that delinquent tax returns cannot be filed electronically, so the 2006 tax return must be postmarked by April 15th to count as filed by the deadline. The IRS will only issue refunds for the past three years, so if you file your 2006 return after the deadline and are due a refund, that refund automatically becomes the property of the United States Treasury.

Just because you don't have to file a tax return doesn't mean you shouldn't. Some individuals do not file their tax return because their income does not require them too. However, by not filing, they are missing out on a possible refund. If you qualify for any refundable credits (such as the Earned Income Tax Credit or, exclusively for 2006, the telephone tax refund credit) or had any withholding throughout the year, it may be in your best interest to file a return before the deadline.

Keep in mind that your refund will be held by the IRS if you have not filed a tax return for 2007 and/or 2008. The IRS can also hold your refund if you have other outstanding debt obligations.

If you do file your 2006 return, make sure that you have selected the right form and filing status for your situation as it stood on December 31, in 2006.