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.