New Yorkers risk losing millions in tax refunds

Unclaimed refunds totaling nearly $171 million are awaiting New Yorkers who failed to file an income tax returns for 2001, the Internal Revenue Service announced. In order to collect the money, a return must be filed with the IRS no later than April 15, 2005.

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. For 2001 returns, the window closes on April 15, 2005. The law requires that the return be properly addressed, postmarked and mailed by that date. There is no penalty assessed by the IRS for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2001 refund that their checks will be held if they have not filed tax returns for 2002 or 2003. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.