In these dismal economic times, so many hard-working citizens have tax debt up to their eyeballs and are desperately seeking tax relief. It’s hard to believe there are taxpayers out there who let their refund go unclaimed or who don’t notice when it doesn’t come in the mail. But every year state and federal taxing agencies publish data about the millions and millions of dollars in refund checks that bounce back to them due to a bad address. Today the California FTB announced in a press release that it is holding over $14 million in refunds.
Granted, some of these refunds are so small that it is hardly worth a taxpayer’s time to call FTB and update his address. But FTB stated that at the high end of the spectrum we’re talking about refunds in the $35,000 range. I suppose some of these taxpayers are very wealthy and don’t need the money. But I wonder how many of them have moved and don’t want the FTB to know their new address. Or how many of these refunds are not claimed because the taxpayer knows they are the result of questionable tax strategies?
FTB reminds us that the best way to avoid the problem of a returned refund check is to sign up for direct deposit.