The IRS is warning taxpayers that they may be missing out on over $1 billion in unclaimed refunds for tax year 2020. Approximately 940,000 people in the U.S. have until May 17 to submit their tax returns and claim these refunds, which have an average median amount of $932. States with the largest number of potentially eligible recipients include Texas, California, Florida, and New York. IRS Commissioner Danny Werfel emphasized the importance of taxpayers not missing out on these refunds and encouraged them to start the process as soon as possible.
Taxpayers typically have three years to file and claim tax refunds before the money becomes property of the U.S. Treasury. While the usual deadline to claim old refunds falls around April 15, this year the deadline was extended to May 17 due to the COVID-19 pandemic. However, if taxpayers have not filed a return for tax year 2021 and 2022, any 2020 refunds would be withheld until they file for those years to ensure they do not owe any money. Werfel urged individuals to review their records and gather necessary information to prevent missing the upcoming May deadline.
The IRS advises taxpayers to obtain their W-2, 1098, 1099, or 5498 forms from their employer or bank, or to order a free wage and income transcript using the “Get Transcript Online” tool on IRS.gov. It is important for individuals to be aware of any potential refunds they may be owed and take the necessary steps to claim them before the deadline passes. Tax season officially began on January 29, with over 71.5 million individual tax filings already submitted to the IRS this season. The IRS is working to ensure that taxpayers are informed and able to access any refunds owed to them in a timely manner.
With the May 17 deadline approaching, taxpayers are encouraged to act promptly to claim any unclaimed refunds for tax year 2020. By reviewing their records and gathering necessary documentation, individuals can ensure that they do not miss out on the opportunity to receive money that is rightfully theirs. The IRS is reminding taxpayers to take advantage of the resources available to them, such as online tools and forms, to facilitate the process of filing their returns and claiming any refunds owed. It is important for individuals to be proactive in addressing their tax obligations and ensuring that they are in compliance with deadlines set by the IRS.
