IRS has $4 million for state taxpayers

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Updated: August 4, 2011 4:20PM

The Internal Revenue Service is looking to return more than $4 million to 3,618 Illinois taxpayers. These taxpayers are due one or more refund checks that could not be delivered because of mailing address errors.

“The average undelivered refund for Illinoisans is $1,107,” said IRS spokeswoman Sue Hales. “We’d like to get this money back to taxpayers as quickly as possible. As soon as we get an updated address, we can reissue the check.”

For Illinoisans, the average dollar amount for returned refunds increased by 8 percent this year, possibly due to recent changes in tax law which introduced new credits or expanded existing credits, such as the Earned Income Tax Credit.

Nationwide, 111,893 taxpayers are due undelivered refunds totaling $164.6 million. The average undelivered refund check is $1,471 this year compared to $1,148 last year, a 28 percent increase.

Taxpayers can find out if they are due a tax refund by visiting the IRS website at www.irs.gov and clicking on “Where’s My Refund.” To use this feature, enter information from the 2009 tax return including the Social Security number, filing status and refund amount. Taxpayers will learn the status of their refund check and in some cases get instructions to resolve delivery problems.

Taxpayers can also check on the status of their refund by calling 800-829-1954. Taxpayers checking on a refund by phone will be given instructions on how to update their address.

Hales said refund checks go astray for reasons that vary with each taxpayer. If a taxpayer moves and does not notify the IRS or the U.S. Postal Service, a check sent to their last known address is returned to the IRS.

After moving, taxpayers can ensure the IRS has their correct address by sending Form 8822, Change of Address, to the IRS. Form 8822 is available on the IRS website at IRS.gov or by calling 800-829-3676.

Hales said taxpayers can avoid undelivered tax refunds by choosing to have their refunds deposited directly into a bank account. Direct deposit guards against undelivered, lost or stolen refund checks. It’s available for both paper and e-filed returns.

IRS also encourages taxpayers to e-file their tax returns. E-file reduces errors and speeds up refunds.