IRS Unclaimed Refunds Nearly $1 Billion to Expire April 15

The Internal Revenue Service says it has nearly $1 billion unclaimed tax refunds from 2009 with only few weeks left to claim them.

There is an estimated 984,400 taxpayers who did not file federal tax returns in 2009 they have until April 15 to file and claim their refunds totaling just over $917 million for that year. The agency estimates about half of the potential refunds are larger than $500.

If taxpayers miss the deadline to file returns, the law says they have up to three years to claim refunds, after that it becomes the property of the Treasury Department.

IRS says there is no penalty for filing a late return that qualifies for a refund. However the catch is your refund may be delayed if taxpayers also failed to file returns for 2010 and 2011.

Also if you owe state or federal taxes as well as unpaid child support or past due student loans or other federal debt, the unclaimed refund can be withheld to settle those payments.

There are some taxpayers that may have not filed tax returns because they didn't make enough to be required to file, however if they had income taxes withheld then they may be entitled to refunds.

Low-and middle-income people who didn't file returns may be missing out on the Earned Income Tax Credit, which was worth up to $5,657 in 2009.