Roughly 1 million taxpayers who did not file a federal income tax return for 2011 are owed refunds totaling $1 billion which have yet to be collected, Forbes reported.
The IRS estimates that about half of the refunds owed amount to at least $698, but those who do not file a return will not receive a refund.
"Time is running out for people who didn't file a 2011 federal income tax return to claim their refund," IRS Commissioner John Koskinen said, according to Forbes.
"People could be missing out on a substantial refund, especially students or part-time workers. Some people may not have filed because they didn't make much money, but they may still be entitled to a refund."
Taxpayers who are not required to file a return, could nonetheless qualify for the Earned Income Tax Credit, depending on a certain maximum level of earnings.
According to figures from the IRS, California has the most number of taxpayers who are missing out on refunds, with an estimated 103,700. In Texas, 101,800 taxpayers may be owed unclaimed refunds, Forbes reported.
Meanwhile, taxpayers in Wyoming are estimated to be owed the largest refunds with an average of $835, according to Forbes. Taxpayers in Idaho and North Carolina would be looking at receiving the smallest refunds with an average of $595.
Those who want to file and potentially receive a return must have all of their tax forms from 2011, and should have also filed in 2012 and 2013.
Refunds could be offset by money owed to the IRS or the state tax agency, of if there is outstanding child support payments or past due federal debts, Forbes reported.
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