Arizonans are owed more than $17.5 million in federal income-tax refunds for 2010, the Internal Revenue Service says.

The refunds are part of nearly $760 million owed to more than 900,000 taxpayers who did not file tax returns for 2010, the IRS said in mid-March.

On Friday, the agency estimated that 23,800 Arizona taxpayers did not file a 2010 return, potentially leaving $17,517,000 on the table. To collect the money, a return for 2010 must be filed with the IRS no later than April 15.

The IRS estimates that half the potential refunds for 2010 are more than $571. For Arizonans, that amount is slightly less, at $508, the agency says.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments, the IRS says. If no return is filed to claim a refund within three years, the money becomes the property of the U.S. Treasury.

There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2010 refund that their checks may be held if they have not filed tax returns for 2011 and 2012. In addition, the refund will be applied to any amounts still owed to the IRS or their state tax agency, and may be used to offset unpaid child support or past-due federal debts such as student loans.

In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit, which for 2010 is worth as much as $5,666. For more information, go to

Contact Assistant Business Editor David Wichner at or 573-4181.