Updated 02/28/2011 08:33 PM

Thousands of North Carolinians owed money by IRS

By: Caroline Blair

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NORTH CAROLINA – A number of Americans could soon become hundreds of dollars richer all by filling out a little bit of paperwork. The IRS says more than a million people across the country are owed more than $1.1 billion in tax returns from 2007, many of whom live right here in North Carolina.

"Many taxpayers out there are not required to file a federal income tax return simply because they didn't make enough money to be required to do so during any given year,” said Mark Hanson, spokesperson for the IRS. “However if they had a job, if they had money withheld, it may be a good idea to file because one, they may be due a refund. Two, they may be entitled to a benefit like the earned income tax credit which could add up to several thousand dollars that they're leaving on the table if they don't file."

Right now, 29,300 North Carolinians qualify for more than $26 million in returns for 2007. The average refund would be about $550. But if the paperwork isn't filled out by April 18 of this year, that money will belong to the U.S. Government.

"Generally speaking you have three years to file a federal income tax return and claim any refund money you may be due," Hanson said.

But the IRS wants to remind those seeking a refund for 2007, to make sure they file a return if needed for 2008 and 2009.

"If they also need to file one for 2008 and 2009, the IRS is going to wait for them to file those returns as well before returning any funds to them,” Hanson added.

There is no penalty for filing a late return to qualify for a refund. However, the law requires it must be properly addressed, mailed and postmarked by April 18.

IRS Officials will not e-mail tax payers regarding refunds and urge you never to respond with personal information online.

Current and prior year tax forms are available on the IRS or by calling 1-800-TAX-FORM.