You know that April 17, 2007, is the deadline for paying your federal income taxes for 2006. But did you know it’s also the last date you can claim a refund of taxes you paid during 2003?If you’ve ever watched a television legal drama, you’ve heard the term “statute of limitations.” It’s a provision in the law that limits the amount of time available to begin certain proceedings or actions.
In the case of unfiled tax returns, the statute of limitations for claiming a refund is generally three years. Since income tax returns for calendar year 2003 were due in April 2004, the three-year period expires this April.
What happens if you don’t send your 2003 income tax return to the IRS by April 17, 2007? You give up the chance to get a refund of any tax you paid in through wage withholding or estimated payments. In addition, you lose the opportunity to apply those payments to other years. You might also miss out on refundable credits such as the earned income tax credit.
Worried about late-filing penalties? Here’s good news: They’re typically not assessed if you file a return showing a refund.
According to the IRS, nearly two million people are eligible to claim refunds averaging approximately $600 for tax year 2003. If you’re one of them, or if you haven’t filed returns for other years, give us a call. Acting now can save your already-paid-in tax dollars.
Questions for our Financial Expert?
E-Mail us at: finance@ClevelandSeniors.Com
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