The IRS Has $1.1 Billion of Your Money

The IRS has $1.1 billion in its proverbial pockets thanks to the 1.1 million taxpayers who didn't file their 2007 tax returns. You have until April 18, 2011 to file your 2007 income taxes- or the IRS will keep your refund for good.

Yes, The IRS Can Keep Your Money

It's true, if you don't file your 2007 tax return by this year's tax filing deadline, your tax refund will revert back to the Department of Treasury. There will be no way to get that money back. According to IRS estimations, half of the refunds in question are $640 or more.

State Refunds are in the Thousands

The IRS release a chart that shows average refunds by state, and the amounts owed back to some individuals are in the hundreds of thousands (topping out at $129,205 for one individual in California). If you think you're owed a refund for 2007, it will definitely pay to file now.

If You Qualify, There's No Penalties

The IRS provides  three-year window of opportunity for claiming your refund, but only in certain cases. The good news here is that returns that 2007 returns that qualify for a tax refund will not be hit with a late filing penalty. You should be able to retrieve your money fine-free.

The Catch: The IRS will keep your refund if you owe back taxes or if you've neglected to file your 2008 and 2009 tax returns. If you happen to have past due student loans, past due child support, or other forms of federal debt, your returns may be applied to those debt amounts.

If you feel that you're owed a refund for your 2007 taxes, file your 2007 taxes before the April 18, 2011 deadline and claim your cash- before it's too late!