IRS Seeks to Return $123.5 Million in Undeliverable Refunds- Could you Be One of Them?

Breaking News: The IRS is looking for taxpayers who are due to recieve a combined $123.5 million in refund checks (107,831 return checks!) that were returned to the IRS by the U.S. Postal service due to mailling errors.

Here's what IRS Commissioner Doug Shulman has to say:

“We are eager to get this money into the hands of taxpayers, so don’t delay if you think you are missing a refund,” said IRS Commissioner Doug Shulman. “The sooner you update your address information, the quicker you can get your refund.”

The undeliverable refund checks averaged at $1,148 this year, and some taxpayers are due more than one check. If you're owed money, don't hesitate to do everything possible to retrieve your funds!

The rate of undeliverable refunds increased by 16% this year, which lines up with the 15% rise in average refunds. This is all likely due to several changes in tax law, like the First-Time Homebuyer's Credit.

The vast majority of checks mailed out by the IRS each year reach their rightful owner. Only a very small percent are returned by the U.S. Postal Service as undeliverable. But if the refund check is returned to the IRS as undeliverable, the steps to retrieve your check are relatively simple.

Owed a Check? Here's what to do:

- Use the "Where's My Refund" tool on this tool will enable you to check the status of your refunds. You'll be required to submit your social security number, filing status, and amount of the refund shown on your 2008 return. The tool will provide the status of your refund and may provide instructions on how to resolve any delivery problems.

- You can also access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.You'll be given instructions on how to update your billing address.

- The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.

- The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.

Stay up to date: When you move, keep the IRS informed. You don't want to miss out on $1,000 or more simply because you didn't notify the IRS when you changed your address.