The Internal Revenue Service (IRS) is holding tax refunds from 2020 for more than 900,000 taxpayers across the country. Are you one of them?
In a press release, the IRS reports there is approximately $1 billion left on the table by those who did not file tax returns in 2020. Take note—the deadline of May 17, 2024, is fast approaching for those who have missed their refund by not filing.
To obtain a tax refund, taxpayers generally must file a tax return within three years. It is not illegal to skip filing a tax return if no money is owed to the IRS. Failure to file a return crosses the line when money is owed. The May 17 deadline is driven by the filing deadline granted in 2020 due to the pandemic. For those who do not owe money to the IRS—but who do not file for their refund—the money becomes the property of the U.S. Treasury on May 18, 2024.
As noted by Danny Werfel, the IRS Commissioner, “There’s money remaining on the table for hundreds of thousands of people who haven’t filed 2020 tax returns. We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There’s a May 17 deadline to file these returns so taxpayers should start soon to make sure they don’t miss out.”
Werfel adds, “People may have just overlooked these, including students, part-time workers and others. Some people may not realize they may be owed a refund. We encourage people to review their files and start gathering records now, so they don’t run the risk of missing the May deadline.”
The IRS estimates that about half the refunds are above $932 and half are below. In a state-by-state estimate of taxpayers who have outstanding 2020 refunds, the following states lead the pack:
- Texas
- California
- Florida
- New York
- Georgia
Heads-up—conditions apply. A 2020 refund may be withheld if there are unfiled returns for 2021 and 2022. Also, any money owed to the IRS on those returns, or other obligations like child support, will be withheld from the refund.
Sometimes fear of missing out is a good thing. If you did not file a tax return in 2020, there is still some time to collect that refund.
Speak with an experienced tax attorney about tax litigation, compliance, or allegations of tax fraud
If the IRS reaches out, contact us at Robert J. Fedor, Esq., LLC for a confidential consultation. With offices in Cleveland, Ohio, and Chicago, Illinois, we deliver aggressive legal representation to resolve your tax concerns. Contact us or call 800.579.0997 today.
