IRS Announces It Has Over $917 Million for People Who Have Not Filed 2009 Return

On March 14, 2013, the IRS announced, in IR-2013-29, that it has refunds totaling over $917 million for approximately 984,400 taxpayers who did not file a federal income tax return for the 2009 tax year.  In order to collect the money, a 2009 tax return must be filed on or before April 15, 2013.The IRS estimates that half the refunds are for more than $500.  In addition, the IRS notes that by failing to file a return, many taxpayers may have missed out on the Earned Income Tax Credit.As a tax attorney, my knee-jerk response was that filing a 2009 return now may trigger a late-filing penalty. Nevertheless, the IRS points out, and my research confirms, that no penalty applies for a late return qualifying for a refund.