IRS May Owe $1 Billion to Taxpayers Who Didn't File 2007 Returns

More than 1 million people—including an estimated 124,000 Californians—only have until April 18 to claim several hundred dollars the Internal Revenue Service may owe them from the 2007 tax year.

An estimated 1.1 million people have yet to file a 2007 income tax return, and only have until April 18—this year's tax filing deadline—to claim a refund for that tax year, the IRS announced Monday. California taxpayers are owed an estimated $129 million, for an average refund of $597. Overall, taxpayers may be owed $1.1 billion.

Taxpayers have three years to file income tax returns and receive a refund, making this year the last to claim money owed from 2007. The return has to be addressed, mailed and postmarked by April 18. The traditional April 15 tax deadline was this year due to a District of Columbia holiday.

After April 18, the refunds become the property of the U.S. Treasury.

There is no penalty for filing a late tax return if the taxpayer is owed a refund, but if individuals have not filed returns for 2008 or 2009 any refund from 2007 will be held. That refund also will be applied to any amounts owed to the IRS, and may be used to pay unpaid child support and past due federal debts such as student loans.

Prior year tax forms can be found here, or taxpayers can get help by calling 800-TAX-FORM (800-829-3676). To get prior year W-2 forms, contact past employers, call 800-908-9946, or file Form 4506-T, Request for Transcript of Tax Return, with the IRS.