Do you have a refund coming?

The Internal Revenue Service is looking for South Dakotans who are missing nearly 640 economic stimulus checks totaling about $367,000  that were returned by the U.S. Postal Service due to mailing address errors.

It is crucial that taxpayers who may be due a stimulus check update their addresses with the IRS by Nov. 28, 2008. By law, economic stimulus checks must be sent out by Dec. 31 of this year. The undeliverable economic stimulus checks average $575 in South Dakota.

The “Where’s My Stimulus Payment?" tool on IRS.gov is the quickest and easiest way for a taxpayer to check the status of a stimulus check and receive instructions on how to update his or her address. Taxpayers without internet access should call 1-866-234-2942.

Regular Refunds

For tax year 2007, approximately 160 South Dakotans were owed an estimated $155,500 from the IRS because they failed to update their address with the IRS. The regular refund checks that were returned to the IRS average $658 in South Dakota. These checks are resent as soon as taxpayers update their address.

As tax year 2008 returns are filed in, the number of undeliverable returns from prior years decrease. The IRS automatically forwards the undeliverable refunds to the taxpayer's current address on their 2008 return. Click on the following link to see if your name is on the list.

List of South Dakotans owed money by the IRS
for an undelivered refund.

The vast majority of checks mailed out by the IRS reach their rightful owner every year. Only a very small percent are returned by the U.S. Postal Service as undeliverable.

Through September 2008, the government distributed 116 million economic stimulus payments with only about 279,000 checks being undeliverable. Meanwhile, the IRS has distributed more than 105 million regular refunds this year with only about 104,000 being undeliverable. In both cases, well under one percent of refunds or stimulus checks were undeliverable.

Unsure if it is a Stimulus Payment or Regular Refund?

Taxpayers not sure of which type of check they may be due should check on a potential economic stimulus check first because of the looming deadline. See instructions above.

How do I Change my address?

Taxpayers can update their addresses with the “Where’s My Refund?” tool on IRS.gov. It enables taxpayers to check the status of their refunds. A taxpayer must submit his or her social security number, filing status and amount of refund shown on their 2007 return. The tool will provide the status of their refund and in some cases provide instructions on how to resolve delivery problems.

Taxpayers can file a change of address (form 8822) with the IRS. For more information on how to notify the IRS of a change of address, click here. 

Taxpayers checking on a refund over the phone will be given instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.

Avoiding Future Problems

The IRS encourages taxpayers to choose direct deposit when they file their return because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.

The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors and speeds up refunds.

Did you forget to file your tax return?

In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. There is no penalty assessed by the IRS for filing a late return qualifying for a refund. The deadline for the 2005 tax year is April 15, 2008. However, a four month extension can be obtained by filing Form 4868 by the April 15th deadline. There is still plenty of time to file 2005 and 2006 tax returns. For current or prior year tax forms, click here or call 1-800-TAX-FORM (1-800-829-3676). For more information about a tax extension, click here.

For free assistance with filing a past or current return, a list of seasonal volunteer tax assistance sites can be obtained by clicking here. These volunteer operated tax assistance sites offer free tax return preparation, along with electronic filing at most locations. Volunteer sites are usually open only during the tax season - February thru April 15th. Eligible taxpayers may also prepare and file their tax return on-line for free through the Free File Alliance. Taxpayers who need help can call the IRS help line at 1-800-829-1040.

For more information contact: Lee DeJabet, (605)773-3900

Page updated 10/27/2008

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