The Internal Revenue Service (IRS) reported that unclaimed income tax refunds total $1.5 billion, which may be waiting for an estimated 1.5 million taxpayers who did not file a federal return. 2018 Form 1040 income taxes.
“The IRS wants to help people who are due refunds but have not yet filed their 2018 tax returns,” said IRS Commissioner Chuck Rettig.
“By law, there is only a three-year period to claim these refunds, which ends with the tax deadline of April this year. We want to help people get these refunds, but they need to file a 2018 tax return by this deadline,” he said.
The IRS estimates the midpoint of potential refunds for 2018 to be $813, meaning half the refunds are that amount and half are less.
In cases where a federal tax return was not filed, the law gives most taxpayers a three-year window of opportunity to claim a tax refund.
If they don't file a tax return within three years, the money becomes the property of the US Treasury. For 2018 tax returns, the window closes on April 18, 2022 for most taxpayers.
The IRS said filers living in Maine and Massachusetts have until April 19, 2022. The law requires taxpayers to mail and make sure the tax return is postmarked by that date.
The IRS added that Americans seeking a 2018 tax refund may have their checks withheld if they haven't filed tax returns for 2019 and 2020.
In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and can be used to offset unpaid child support or overdue federal debt, such as student loans.