Plenty of Checks Not Delivered Due to Out-of-Date Addresses
Once again the IRS is issuing a statement reminding the public about the many unclaimed checks, due largely to wrong addresses. It mentions that there are over 100,000 undelivered checks which are mostly income tax relief meant for the intended recipients. This reminder to the public to update their addresses is timely as the checks will become void by the end of the winter. However, the beneficiaries can claim the proceeds when they file the income tax return in 2012.
Mark W. Everson (IRS commissioner) commented that the number represents part of the 24 millions checks written over the year for the advance child tax credit. For the full year, an amount that exceeds $14 billion has been issued in the form of checks for that tax relief.
He said in a press release, “timing is essential if you still want to cash in the advance child credit check this year.” He advised the public to check out the IRS official website to see if they are part of this entitlement.
Un-cashed check is a huge issue with IRS. Collectively, both tax rebate and advance child credit checks, amounted to over $110 million, attributed to some 200,000 checks sent out and returned back to IRS due to invalid or wrong addresses. Naturally, IRS would expect the concerned taxpayers to update their addresses before they are issuing them again.
The amount is not insignificant. The outstanding claims on advance child credit are $50 million, so it could really be handy for families in need. On the tax rebate side, the unclaimed amount is $66 million for over 92,000 returned checks. If you work your math, that is more than $700 per check in average.
There is no reason for these checks to go to waste. There are helpful search tools on IRS website to check if you have been one of the rightful recipients.
Depending on what you are checking, you could either go “Where’s My Refund” or “Where’s My Advance Child Credit?” button.
The purpose of the press release is to clear the backlog of checks so they get on to the hands of the appropriate beneficiaries, according to Everson.
To access the help facilities online, taxpayers are expected to key in their social security numbers and the corresponding filing status (e.g. single or joint filing). If it is meant for tax rebate purpose, they also need to supply the refund amount as per the previous income assessment. For advance child credit, taxpayers are required furnish the information on the exemptions as indicated on previous year return.
If all necessary information is entered correctly, a web page would pop up and tell the taxpayer the current status of the check, either the tax rebate or advance child credit. Usually instructions would also follow on how they could remedy the situation to resolve their problems.
“The IRS needs nothing more than a good address. After all, we could only mail the checks once we get the correct addresses. Please put some urgency into this so that you can receive the checks before the year is over.” Everson said.
If you suspect you have been missing an advance child tax credit or tax rebate, first verify this suspicion with your records or your income tax adviser. Once you believe everything is in place, get in touch with the IRS toll-free 1-800-829-1040 to change your address.
Of course, all these hassles could be avoided if you have had a direct deposit that is linked to a personal bank account. It is also a wonderful way to eliminate check mishandling or theft. This payment option is accessible to all and you can indicate your desire to have this IRS payment mode on both paper income tax returns and electronically filed returns. Increasingly more American residents are opting to receive the tax rebate electronically, so this could be perceived as a safe option. But do take note that this payment arrangement is currently not applicable for the advance child credit.
There could be a number of explanations on these returned checks. Perhaps the most common one is the mobility of the population. According to the U.S. Postal Service, over 40 million residents change addresses every year, and this becomes a problem when taxpayers do not inform the IRS or the U.S. Postal Service of this change.
Form 8822, Change of Address, provided by the IRS is meant to mitigate this problem. Any taxpayer who has changed address since their last income tax return can alert the IRS through this form. It is available for download at its website or you could approach 1-800-TAX-FORM (1-800-829-3676) for a copy.