Working World

Last year, When it dawned on everyone that a recession was inevitable, the IRS announced it $163 million dollars to give away.

How did that happen? Every year the IRS loses track of people. During 2008, the problem was especially acute because of the added burden of the stimulus checks. Nearly everyone qualified, even people who don’t ordinarily file, so mix-ups were plentiful. Newly married women with name changes and taxpayers married to noncitizens were especially vulnerable.

An additional $103 million in regular returns remained in IRS coffers because the federal government couldn’t locate recipients, that is, people who changed residence after filing but who didn’t notify the government. Most are out of luck, as the rules stated that the IRS had to dispense the money by Dec. 31 of last year. However, if you missed all the deadlines, one tiny loophole remains. You can ask for credit on your 2009 taxes when you file your 2008 return.

While Congress starts enacting the stimulus package, don’t fail to act on your own behalf for the future. You can change addresses online at the IRS website. Better yet, ask for direct deposit. Did you know the IRS will use either checking or savings accounts for payment?

Also, remember to report name changes to the Social Security Administration. You must do this by mail, or in some locations, in person. This is your money. Hang on to it.