Federal agencies are holding at least $12.5 billion of unclaimed money – and that could be just the tip of the iceberg.
“In tough economic times like these, that’s a pot at the end of the rainbow,” said Pete Sepp, spokesman for National Taxpayers Union, a nonpartisan watchdog group.
The dollars come in the form of matured savings bonds, IRS refunds, Native American trust income and Federal Deposit Insurance Corp. accounts that the government holds for those who lost track of their money.
While some may have simply forgotten about an account or failed to cash a check, others may not realize their savings bonds stopped gaining interest, or people may have simply not filled out a change-of-address form.
And there may be more money out there – as vendor, welfare, Social Security and housing checks go uncashed or misdirected.
“Federal officials do owe it to taxpayers to find out if there’s even more lurking out there in its books,” Sepp said.
States are holding billions of unclaimed dollars, too.
According to the National Association of Unclaimed Property Administrators, 42 states reported a combined unclaimed haul of cash and property totaling about $15.6 billion in 1999.
New York state alone is holding $5.4 billion in unclaimed money.
Many claim the federal government is not doing enough to get the dollars back to their rightful owners.
“They make no effort to do it,” said Tim Shallenburger, the former state treasurer of Kansas. “How many advertisements do you see?”
But fed agencies say they’re willing and waiting to fork over the cash.
“We’d like people to take a look at their older bonds, and if they’ve stopped earning interest, cash them in and put your money back to work,” said Pete Hollenbach, a spokesman for the Bureau of Public Debt, which holds $9.8 billion from 26 million U.S. Savings Bonds that can no longer earn interest.
Bond holders are advised to check http://www.savingsbonds.gov.
Other unclaimed money includes:
* $80 million of returned checks the IRS reported in November 2002 (www.irs.gov). There’s also $2.5 billion in IRS refunds available for 1.9 million people who didn’t need to file a 1999 tax return. The 1999 returns must be filed before April 15, 2003.
* $29.7 million the FDIC has held for about 31,000 accounts, dated before 1993, from failed banks and savings and loans (www.fdic.gov).
* $87.9 million in 66,864 accounts for American Indians whose land has been used for commercial ventures, said the Office of Special Trustee for the Department of the Interior (www.ost.doi.gov), reporting figures from Dec. 31, 2002.
—-
Where the money is
Bureau of Public Debt – $9.8 billion – In 26 million individual bonds that have matured
Internal Revenue Service – $2.58 billion – In refunds and returned checks
Federal Deposit Insurance Corporation – $29.7 million – In accounts in failed banks and savings and loans
Office of Special Trustee – $87.9 million – In accounts for American Indian land held in trust by U.S. government