The Internal Revenue Service (IRS) has announced that almost $1.5 billion in tax refunds remains unclaimed for the tax year 2019, with the median refund estimated to be $893.
Internal Revenue Service ( Photo: CBS News )
The IRS has stated that the refunds are unclaimed because many people have not yet filed their 2019 tax returns
The deadline to claim these refunds is July 19, 2023, and the IRS Commissioner, Danny Werfel, has encouraged taxpayers to file their returns soon to ensure they do not miss out. The three-year window to file and claim tax refunds is a legal requirement, and if taxpayers fail to do so, the money becomes the property of the US Treasury.
The COVID-19 pandemic led to the postponement of the three-year window to file and claim tax refunds, and the IRS issued Notice 2023-21 offering legal guidance on claims made by the postponed deadline.
Low- and moderate-income workers who may be eligible for the Earned Income Tax Credit (EITC) may miss out on a refund of taxes worth as much as $6,557 for the 2019 tax year if they fail to file their tax returns by the deadline.
Taxpayers who have not filed their tax returns for 2020 and 2021 may face a delay in receiving their 2019 tax refunds
Furthermore, if taxpayers owe money to the IRS or a state tax agency, have unpaid child support, or have past due federal debts such as student loans, the refund will be used to offset the amount owed.
To claim tax refunds, taxpayers should request copies of key documents such as Forms W-2, 1098, 1099, or 5498 for the years 2019, 2020, or 2021 from their employers, bank, or other payers. Alternatively, they can use “Get Transcript Online” at IRS.gov to order a free wage and income transcript, or file Form 4506-T with the IRS to request a “wage and income transcript.”
The U.S. Sun recently reported that many Americans are eligible for extra money due to a tax mix-up. The IRS has confirmed that taxpayers who already reported and filed their inflation relief as income are now eligible to receive a refund because the stimulus checks were not subject to federal tax. Americans have less than a week to claim tax refunds worth $2,910, and they should check if they qualify.
