Clock ticking for those due '98 tax refunds

By Mike Gordon
Advertiser Staff Writer

Hawai'i residents are procrastinating away more than $13.5 million in unclaimed 1998 federal tax refunds, according to the Internal Revenue Service.

The 10,600 Island residents are among the almost 2 million U.S. taxpayers who will give the government an unintended $2.3 billion gift unless they claim their money.

That's the amount of unclaimed refunds owed 1.7 million people who didn't file tax returns for 1998. Refunds for that year that aren't collected by April 15 become property of the government.

"Time is running out for individuals to take steps to claim this money," said IRS Commissioner Charles Rossotti.

The estimated median refund for Hawai'i is $514.

The law allows a three-year window for people who don't file tax returns to claim refunds. Tax returns must be postmarked by April 15 for 1998 returns.

The check will be sent only if the taxpayer also filed a 1999 and 2000 tax return. In some cases, taxpayers may be owed refunds for those years, too.

Tax forms should be requested by mid-March and are available from the IRS Web site, or by calling (800) 829-3676. Assistance in filling out the form is available by calling the IRS help line at (800) 829-1040.

Bloomberg News Service contributed to this report.