Last updated on June 21, 2004
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CREDIT & BANKING
Cash from the Lost and Found
by Cameron Huddleston States aren't the only ones sitting on billions of dollars worth of unclaimed funds. Federal coffers also hold forgotten money, and some of it could be yours. But it's up to you to track down your cash.
Gifts from the Feds
The federal government hangs on to tax refunds, savings bonds, government-guaranteed mortgage insurance refunds and pensions. There's no central database to search for these missing funds, so you'll have to check with the government agency that owes you money.
Unclaimed tax refunds. The IRS is sitting on millions of dollars in undelivered tax refunds. You could be one of the almost thousands taxpayers who didn't get their checks this year or previous years. Frequently, checks don't reach taxpayers because they move or change their names.
There's no statute of limitations for claiming tax refunds that are lost or stolen. And if you didn't file your return but were owed a refund, there's no penalty for filing late. However, you have only three years from the time you should have filed to claim your refund.
Claims take two to four weeks to process, says IRS spokeswoman Michelle Lamishaw. Track down your refund with the agency's online tool. If you think you're owed a refund from an earlier year. Or call 800-829-1040.
To prevent your refund from getting lost in the mail, notify the IRS when you move by filing a Form 8822 "Change of Address." You also can choose to have your refunds deposited directly to a bank account.
Savings bonds. Savings bonds are more often forgotten than lost. More than $9 billion worth of matured savings bonds has never been cashed. However, more than 15,000 savings bonds are returned undeliverable each year. Most bonds stop accruing interest after 30 years. If you've got one that's been collecting dust, cash it in.
Most banks will cash savings bonds. To cash bonds worth more than $1,000, you'll probably have to sign the request for payment on the back of the bonds in front of a bank officer, provide your social security number and mail it to a Federal Reserve Bank.
The Bureau of Public Debt will replace lost, stolen or destroyed savings bonds as long as it can establish that they haven't been cashed. The bureau keeps records of all savings bonds that have been issued and will search for yours for free. For more information, see "Track Down Lost Savings Bonds."
Mortgage refunds. If you had a Federal Housing Administration insured mortgage and paid a mortgage insurance premium, you should get that money back after selling your home. But during the move, the letter the FHA sends notifying you of the refund could easily get misplaced.
To see if you're owed a refund, search the Housing and Urban Development's database by name or case number. Call 800-697-6967 if your name is on the list.
Pensions. Were you a participant in a pension plan offered by a company that went out of business or closed its plan? Millions of dollars of pension benefits go unclaimed because those owed the money can't be found, according to the Pension Benefit Guaranty Corp.
When your former employer can't find you, your pension money goes to the PBGC, a government agency that protects retirement income. Check PBGC's Pension Search Directory. If you're on the list, or are a survivor of a person listed, either call the PBGC at 800-326-5678 or e-mail found@pbgc.gov to get an application for your pension benefit.
Try your luck with the states
States receive an estimated $3 billion in unclaimed property every year, says Jeremy Katz, vice-president of MissingMoney.com -- a free online database sponsored by the National Association of Unclaimed Property Administrators. Companies often lose track of a customer, former employee or shareholder. They turn over uncashed dividend checks, returned deposits, unclaimed refunds and uncollected insurance benefits to the state where your last known address is (after three, five or seven years, depending on the state).
You can search for unclaimed funds on MissingMoney.com. The database taps the records of 13 participating states and the District of columbia and includes links to non-participating states' Web sites.
Missingmoney lets you do individual, family or business searches. Just type in your last name or business name or social security number for an advanced search. If your name appears in the database, you can start the claims process on the site (the service is free).
If nothing shows up, don't give up. Some states list only their most recent records. You can write directly to states where you've lived to ask if any property belonging to you or a family member has been turned over to them.
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