Snow Effect

Wednesday, March 10, 2010

1.3 Billion dollar of unclaimed tax returns for 2006

I just read THIS article that explains how for 2006, the government has a calculated 1.3 billion dollar surplus of unclaimed taxes. That 1.3 Billion is calculated based on the standard deduction, so if the 1.4 million people who should have filed but didn't had more than the standard deduction (due to school costs, health care costs, mortgage, charitable contributions, etc) then that number would be even higher.

That is an average of $1,000 per person who hasn't filled but paid. What American, in this economy, wouldn't file their return? I can think of two main groups, although I am sure there are more smaller groups. The first main group, the smaller of the two, is people who owe for previous years. They owe for previous years, and are nervous about filing due to the amount that they will owe. The second main group are undocumented immigrants who paid taxes, but, for one reason or another, don't file their taxes. Maybe they are too nervous to ask the gov for money back. Maybe they don't understand the process. Who knows... but it is my guess that the majority of this 1.3 Billion dollar unclaimed purse was paid by undocumented immigrants who won't file for the return.

After reading that, I read THIS article. I think that the IRS should verify the legality of the tax payers status, and then forward those unclaimed taxes to the health care institutions who are most likely to treat undocumented, uninsured patients.

This is my take on it. Let the good help offset the bad. Don't give the money to the US Treasury. That organization is a mockery, and shouldn't be given a penny of extra money. Any money forwarded to them should be considered lost. Giving handouts to them is like throwing pearls before swine. It is a waste.

AF - OUT!

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