Your Hidden Liquid Asset - Tax Refunds

You work hard to maximising revenue and minimising operating expenses of your business. The purpose is to achieve better cash flow, and, eventually, more cash for your business… and for you.

In term of asset, you also work hard to increase your asset, including the before-mentioned cash, as your liquid asset.

However, you and I often overlook one liquid asset that is hidden, simply due to the fact that we don’t know it is exist or we are simply ignorant.

Well, this is the time that we stop not-knowing and being ignorant, because the hidden asset can give you something that is actually yours.

Tax refunds. ‘Ring a bell? :)

Hidden liquid asset: Tax Refunds

Consider these facts:

In 2007, 115,478 IRS income tax refund checks totaling $110 million - an average of about $953 per taxpayer - undelivered mainly due to unreported changes of name and/or address. In addition, an estimated $500,000,000 million in IRS refund checks that are delivered are not cashed and go unpaid every year - Source: unclaimed.com

An estimated £961 million in UK’s Government grants and tax credits goes unclaimed each year - Source: coleman-parkes.co.uk

(UK’s PAYE system - admin) …is taking nearly £300m a year too much off our wages and salaries, according to the government’s own auditor - Source: bbc.co.uk

The facts can go on and on - my point is, you have to start looking for refunds from your paid taxes because they are yours and the amount owed might actually surprise you.

How to claim tax refunds

Naturally, there are two venues to claim tax refunds:

1. Do it yourself
   You can start by contacting your local tax office and prepare the required documents and forms. It is cost-saving, and doing it yourself today may prepare you well for next years’ tax refund claim. The main drawback of doing it yourself is due to the fact that it is time consuming. Moreover, preparing documents and filling forms are not considered an easy task to do.
2. Hire an agent
   You can hire a specialised third-party or an agent to help you claim yours, as well as helping you getting tax rebates. It is time saving, less hassle and you will receive the right information and help, considering you choose the right agent. The main drawback is that it will cost you a sum of money as your agent’s fee.

In my case, I would go for the second option - hiring an agent - because my businesses are complex enough and I really need a third-party help to claim the tax refunds and getting the tax rebates for me. I would like to suggest you to do so, too.

Are you claiming tax refunds, lately? Please share your experience and tips by commenting on this post.

Ivan Widjaya
Claiming what is actually mine

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