Sam Spade's San Francisco

This just in from the IRS:

Unclaimed refunds totaling more than $2.2 billion are awaiting about 1.8 million people who failed to file a federal income tax return for 2003, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2003 must be filed with an IRS office no later than Tuesday, April 17, 2007.

The IRS estimates that half of those who could claim refunds would receive more than $611. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.

“Everybody who needs to should file their tax return. But you simply can’t get the money we owe you unless you file a return,” said IRS Commissioner Mark W. Everson.

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 2003 returns, the window closes on April 17, 2007. 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.

WARNING: There are many people out there who prey on the American taxpayer. Avoid the seasonal businesses and people who hold themselves out to be tax professionals, but are not. Here are the three basic levels one might encounter when looking for a tax professional:

1) Enrolled Agents are NOT professionals (even though their association claims they are) and there is NO EDUCATIONAL REQUIREMENT for Enrolled Agents. An Enrolled Agent is a tax practitioner who has technical expertise in the field of taxation and who has registered with the IRS to provide certain tax-related services.

2) Certified Public Accountants (CPA) are true professionals. Certified Public Accountant (CPA) is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA. CPA's are also persons who have graduated from an accredited university or college with a degree in accountancy.

3) Tax Attorneys are the top of the food chain and are the highest level of tax professionals. Tax attorneys are professionals who have earned a juris doctor degree, the professional post-grad doctorate degree in law. Tax attorneys have also passed the California State Bar exam and are fully licensed to practice law. Most tax attorneys are also certified by the U. S. Tax Court, U.S. District Court, U.S. Court of Appeals and many are certified to practice before the California State Supreme Court as well.

If you are experiencing a problem with the IRS or the State of California Franchise Tax Board the correct, appropriate and best person for you to see is a tax attorney.