Refund Selection is not a government program—it's a private company that charges you to help with tax refunds

Refund Selection is a for-profit business, not a government agency or official tax service. The company offers to help people track down unclaimed tax refunds, typically charging a fee (usually a percentage of the refund found) or an upfront cost. The core problem: you can find and claim your own refunds for free through the IRS or your state tax authority, and Refund Selection takes a cut of money that belongs entirely to you.

The service itself is not illegal, but it is unnecessary. Refund Selection and similar companies rely on the fact that many people do not know they can search for unclaimed refunds on their own, or they assume the process is too complicated to handle alone. In reality, the IRS and every state tax authority have free tools designed for exactly this purpose.

Whether Refund Selection is worth the cost depends on your situation. If you have multiple years of unfiled returns or complex tax history, paying someone to organize the paperwork might save you time. But if you have a straightforward case—one or two years of missing refunds—you will almost certainly come out ahead by doing the work yourself and keeping the full amount.

Key Takeaways

  • Refund Selection charges a fee to help you find unclaimed tax refunds, but the IRS and state tax authorities offer the same search tools for free.
  • The IRS Unclaimed Refunds tool on IRS.gov and your state's tax authority website let you search for your own refunds without paying a middleman.
  • If Refund Selection finds a refund and you authorize them to claim it, they will deduct their fee before the money reaches you.
  • Refund Selection is a legitimate business, but it is a paid service competing with free government options—not a scam in the legal sense, but often a poor financial choice.
  • Before paying any company to find your refunds, check the IRS and your state tax authority websites yourself; the process takes less than ten minutes.

How Refund Selection works and what it costs

Refund Selection typically operates in one of two ways. Some versions charge an upfront fee (ranging from $20 to $50 or more) to search for unclaimed refunds on your behalf. Others work on contingency, taking a percentage of any refund they locate—often 15 to 25 percent, though the exact cut varies.

When you sign up, you provide personal information (name, Social Security number, address) and authorize the company to search IRS records and state tax databases. If they find a refund, they contact you with the amount. If you agree to let them proceed, they file a claim or amended return on your behalf and deduct their fee from the refund before sending you the remainder.

The problem is straightforward: that fee comes from your money. A $1,000 refund with a 20 percent fee becomes $800 in your pocket. The IRS does not charge you to claim your own refund, and neither does your state. You can do the exact same search yourself at no cost.

The free way to search for unclaimed refunds yourself

The IRS maintains a tool called Where's My Refund? on IRS.gov, but that tool only works for recent returns you have already filed. For older, unclaimed refunds, use the IRS Unclaimed Refunds search at IRS.gov/refunds. You will need your name, date of birth, and Social Security number. The search covers refunds from the past three years (the standard statute of limitations for claiming a refund).

If you find a refund, you can claim it by filing an amended return (Form 1040-X) or, if you never filed a return for that year, by filing a regular return for that year. Both forms are free to download from IRS.gov, and the IRS provides free filing software through the Free File program if your income is below a certain threshold (which changes yearly).

Your state tax authority has a similar process. Search your state's tax department website for "unclaimed refunds" or "refund search." Most states maintain their own databases and allow you to search online. If you find a state refund, you will file an amended state return or a regular return for that year, depending on whether you filed originally.

When Refund Selection might make sense (and when it does not)

Refund Selection could be worth considering if you have multiple years of unfiled returns, complex filing history, or you are unable to navigate the forms yourself and cannot afford a tax professional. In those cases, paying a percentage fee might be simpler than trying to sort it out alone—though a tax professional (CPA or enrolled agent) is usually a better choice because they can handle the full return, not just the refund search.

Refund Selection does not make sense if you have one or two straightforward years of missing refunds. The IRS search takes five minutes, filing an amended return takes an hour or two, and you keep 100 percent of the money. Even if you pay a tax software company $20 to $50 to file the amended return for you, you still come out far ahead compared to giving Refund Selection 15 to 25 percent of the refund.

Be especially cautious if Refund Selection or a similar company contacts you unsolicited by phone, email, or mail. The IRS does not initiate contact about unclaimed refunds, and neither do most state tax authorities. Unsolicited contact is often a sign of a scam, even if the company name sounds official.

Red flags that separate Refund Selection from actual scams

Refund Selection itself is a registered business, not a scam in the criminal sense. However, there are scams that use similar names or pretend to be affiliated with Refund Selection or the IRS. Watch for these warning signs: a company that demands payment upfront before searching, a company that guarantees a refund amount, a company that threatens legal action if you do not pay, or a company that asks for your refund via gift card or wire transfer.

The real Refund Selection will ask for your personal information and Social Security number to search, which is necessary. But they should not ask you to pay before they find something, and they should not may provide results. If a company claiming to be Refund Selection or a similar service demands money before searching, or asks you to send money by wire or gift card, that is a scam—report it to the FTC at ReportFraud.ftc.gov.

Legitimate refund-finding services (including Refund Selection) are transparent about their fees and how they work. If you cannot find clear information about what they charge or how they operate, that is a reason to walk away and use the free government tools instead.

How to report Refund Selection or similar services if something goes wrong

If you paid Refund Selection and believe you were overcharged, misled, or the service did not deliver what was promised, file a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. The FTC investigates complaints about deceptive business practices and can take action against companies that violate consumer protection laws.

You can also file a complaint with your state's Attorney General office, which handles consumer fraud cases at the state level. Most state AG offices have an online complaint form on their website.

If Refund Selection charged your credit card or bank account without clear authorization, contact your bank or credit card company and dispute the charge. Most financial institutions will reverse unauthorized charges and investigate on your behalf.

Frequently Asked Questions

Is Refund Selection affiliated with the IRS?

No. Refund Selection is a private company. The IRS does not endorse or partner with refund-finding services. The IRS provides free refund search tools directly to the public on IRS.gov.

Can I get my money back if I already paid Refund Selection?

If you paid by credit card or debit card, contact your bank and dispute the charge as unauthorized or misrepresented. If you paid by check or wire transfer, contact Refund Selection directly and request a refund. If they refuse, file a complaint with the FTC and your state Attorney General.

What if I cannot find my refund using the free IRS tool?

Refunds older than three years are generally not recoverable through the IRS (the statute of limitations has passed). If your refund is within three years and does not show up in the search, contact the IRS directly at 1-800-829-1040 or visit a local IRS office. A tax professional can also help investigate why a refund is missing.

Do I need to file a tax return to claim an old refund?

Yes. If you never filed a return for that year, you will need to file a return for that year to claim the refund. If you filed but did not receive the refund, you will file an amended return (Form 1040-X). Both are free to file through the IRS Free File program or by downloading the forms from IRS.gov.

What is the difference between Refund Selection and a tax professional?

Refund Selection only searches for and helps claim existing refunds. A tax professional (CPA or enrolled agent) can review your entire tax situation, file returns for multiple years, identify deductions you missed, and handle complex tax issues. A tax professional is usually a better investment if you have complicated tax history.