Deadline Looms to Claim $2.5 Billion in 2000 Tax Refunds

Nearly 2 million students, retirees and other taxpayers stand to lose $2.5 billion in refunds if they don’t act quickly to claim the money.

The Internal Revenue Service said Monday that anyone who should have gotten a refund for taxes paid in 2000 but didn’t file a return must file and claim the money by April 15.

“Don’t wait until it’s too late,” said IRS Commissioner Mark Everson. “We want all taxpayers to get the refund they’re due.”

Half of those taxpayers could claim refunds of $529 or more, the IRS estimated. That calculation does not include the earned income tax credit, which could make the refund even larger for some low-wage workers.

“That’s not chump change,” said Fred Grant, a senior tax analyst at Intuit Inc., who urged taxpayers to file the returns before the money goes to the U.S. Treasury, as stipulated by law.

Individuals owed a refund have three years to claim it. This year’s tax filing deadline is the last chance to claim 2000 refunds.

Students, retirees and anyone who worked part-time or for only part of the year are among those most likely to be owed money. Those individuals typically did not have enough income to be required to file a return, but they may have overlooked the taxes withheld from their paychecks or payments for self-employment taxes. Because they didn’t file a return, they never got the refund.

In 2000, the IRS did not require individuals with income less than $7,200 and married couples with income less than $12,950 to file a tax return. Those age 65 or older could receive a little more before they had to file a return.

Dependents were not required to file a return if they earned $4,400 or less or received $700 or less in interest, dividends and capital gains.

A refund for taxes paid in 2000 will be held at the IRS if the taxpayer did not file a return for 2001 and 2002, in case the taxpayer owes taxes for those years. There is no penalty for filing a late return to claim a refund.