IRS - Millions go unclaimed

WASHINGTON -- "Return to sender" is becoming a familiar refrain at the IRS, where almost 116,000 checks worth more than $50 million in advance child-care payments await claim.

The IRS mailed nearly 24 million advance payments in July and August after Congress agreed to increase the child tax credit this year from $600 to $1,000.

Lawmakers approved an early payment and directed the Internal Revenue Service to mail the checks during the summer.

Taxpayers who moved, or changed their names due to marriage or divorce, might not have gotten their payments, worth up to $400 per child. They need to act by Dec. 5 to collect the payment this year, the IRS announced Monday. After the December deadline, taxpayers can collect the credit next year when they file their 2003 tax return.

"Time is running out to get an advance child credit check," said IRS Commissioner Mark Everson. "Our goal is to get this money back in the hands of the people it belongs to, and we want to get the checks out as soon as possible."

Checks returned to the IRS as undeliverable are destroyed, but a record of refunds due remains in taxpayers' files. The IRS issues a new check when a taxpayer notifies the agency of a new address, or when the taxpayer files next year's return from a new address.

Taxpayers can register new addresses with the IRS and claim refunds through their tax preparers or by calling 1-800-829-1040. Alternatively, taxpayers can file Form 8822 to notify the IRS of a new address.

This year's unclaimed checks include more than 92,000 tax-refund checks, about the same number of refunds that go undelivered each year. The average refund is $722.

In total, the IRS has more than $118 million to return to more than 200,000 taxpayers.

"All we need is a good address. As soon as we get the correct address, we can start the check on its way," Everson said.

Taxpayers unsure if they are owed refunds can use interactive features on the IRS Web site to track refunds or advance child credit payments. Taxpayers need to enter their Social Security numbers, filing status and other information to find the status of a refund or advance payment. Using those features, many taxpayers also get instructions to resolve problems delaying refunds.

The IRS said taxpayers can avoid problems with lost or stolen refunds by having refunds deposited directly into personal checking or savings accounts. More than 44 million taxpayers used that service this year.

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On the Net:

Database with names of taxpayers whose checks were returned: http://customwire.ap.org/dynamic/external/wid.ap.org/tax/index.asp?S ITE7219

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Where's My Advance Child Tax Credit? http://www.irs.gov/individuals/article/0,,id111546,00.html

Where's My Refund? http://www.irs.gov/individuals/article/0,,id96596,00.html