Q: Why does the IRS have $73 million in undelivered tax refunds?
A: The federal tax collecting agency announced in November it needs to find some 87,485 taxpayers, including more than 400 Iowans, whose 2003 tax refunds have not yet been delivered. Undeliverable refunds returned to the IRS average $836 per check. More than $300,000 belongs to Iowans. Checks range in amount from one dollar to $30,000. The IRS says the undelivered refunds mostly are due to changes in address. Apparently, many folks don’t think to notify the IRS about a change of address until filing their next tax return. But it’s important, especially if you are owed a refund. Taxpayers still waiting on their 2003 federal tax refund ought to contact the IRS to verify and update their mailing address. Download form 8822 or call (800) Tax-Form to obtain the change-of-address document. Checks will be reissued as soon as the IRS receives corrected information.
Q: How can Iowans check the status of their refund?
A: Those with access to the Internet may use an on-line tool found on the IRS website at www.irs.gov. Under "Where's My Refund?" taxpayers may submit specific information, including their Social Security number, filing status and the refund amount shown on their 2003 tax return. This user-friendly tool has become popular with taxpayers. The "Where’s My Refund" system has been used almost 24 million times so far in 2004.
Q: How can Iowans avoid delays in receiving their 2004 refund?
A: Iowa taxpayers in store for a tax refund from Uncle Sam for the 2004 tax year ought to take advantage of direct deposit. More than 49 million taxpayers this year chose to direct deposit almost $120 billion in refunds into a personal checking or savings account. It’s become commonplace for many workers to take advantage of direct deposit for their regular paychecks. And tens of millions of taxpayers agree it’s faster, more convenient and protects against theft or lost refund checks. Folks who file electronically or by paper may choose direct deposit. As chairman of the Senate Finance Committee, which bears primary oversight authority over the IRS, I’ll continue to closely monitor the agency’s commitment to customer service.