It's your money, so come and get it

The IRS wants to give you money.

Don't blink: It's true. The country's chief collector of taxes is looking for nearly 1,000 people statewide owed more than $1.2 million. In New London County alone, 87 people had refund checks returned because of mailing address errors, totaling more than $288,000.

New London County's average refund of $3,319 was three times more than the average for the rest of the country and the highest by far of any county in Connecticut.

The IRS had no explanation for the region's relative good fortunes, though a spokesman said it could be that one large refund threw the numbers off.

"The IRS makes it easy for taxpayers to update their addresses and claim their refunds," said IRS spokesman Gregg Semanick in a statement.

IRS spokesman David Stewart said those whose names appear on the IRS's list of undelivered refund checks can call the IRS at 1-(800) 829-1954 or use the "Where's My Refund?" tool at www.IRS.gov.

Undelivered checks nationwide averaged nearly $1,150 this year compared to $990 last year. The 16 percent increase in average refunds corresponds with the increase in average refunds nationally for 2008, spurred by several changes in tax law, including the $8,000 first-time homebuyer tax credit, the IRS said.

Stewart said most people who reclaim their tax refunds do so thanks to relatives and friends who see their names on the IRS list after the claimants move away from an area. He said many of these missing checks would be avoided by e-filing or even paper filing, if taxpayers would request direct deposit of their funds.

Stewart said most funds are eventually returned to taxpayers, though he didn't have an exact percentage. He said refunds can be added to a subsequent tax year's tax return, but the IRS would rather citizens receive the money sooner.

"It's your money," he said.

After a period of time, he said, unclaimed refunds are set aside in a special category, though they are considered to be a taxpayer's property forever. It's possible, however, that the government could apply the unclaimed refund to an unpaid federal student loan.

"Taxpayers should not miss out on getting their money back," said IRS spokesman Semanick. "The sooner you update your address information, the quicker you can get your refund."

l.howard@theday.com