by 
The Curious Bag
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More than 64 million taxpayers received refunds in 2008 because they overpaid on their taxes. Tax returns factor in deductions, exemptions and credits that can reduce your tax liability.
Significance
If you do not file a tax return and are required to by law, you can incur failure-to-file penalties, which can reduce your refund or increase the amount of tax you owe.
Time Frame
If the IRS owes you a tax refund, you have three years from the date the return is due (usually April 15) to file; otherwise, you forfeit any refunds you would have been owed for those years.
Benefits
In addition to the possibility of a refund, filing a tax return has an added benefit for self-employed taxpayers in that it ensures they receive proper credit toward Social Security and Medicare.
Warning
Repeated or flagrant failure to file tax returns can result in a criminal investigation, and interest and penalties on taxes you owe continue to accrue even if you do not file a return.
Fun Fact
According to the IRS, the average tax refund in 2008 was $2,429.
Source:
IRS.gov: Tax Refund Statistics for 2008
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