Almost 1 million people have not claimed tax refunds in recent years, the Internal Revenue Service has announced.
An estimated 940,000 taxpayers across the U.S. have unclaimed tax refunds dating back to the 2020 tax year, adding up to more than $1 billion in refunds, because they have yet to file a return for that year, the IRS said in a statement on March 25. The government agency has issued a May 17 deadline for outstanding 2020 tax returns.
A table released by the IRS shows a "midpoint" tax refund of $932, meaning about half of non-filers are owed more than that amount, and the other half is owed less. Newsweek has contacted the IRS for comment via email outside of normal working hours.
While anyone who did not file a tax return for 2020 has until May 17 to do so, the IRS also stipulated in its statement that if those taxpayers have not filed tax returns for 2021 and 2022, any amount owed to them from the 2020 return may be held.
"Any refund amount for 2020 will be applied to amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or other past due federal debts, such as student loans," the agency said.
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According to data released by the IRS, some states have tens of thousands of people who may be owed refunds as a result of not filing in 2020. An estimated 88,200 people are owed money in California, with 53,200 in Florida and 93,400 in Texas.
"There's money remaining on the table for hundreds of thousands of people who haven't filed 2020 tax returns," IRS Commissioner Danny Werfel said. "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."
The IRS said that any estimates of how much is owed to non-filers did not include the coronavirus pandemic era Recovery Rebate Credit or other credits. The agency added that those who may be entitled to the 2020 COVID Recovery Rebate Credit must file their 2020 returns this year or lose what they may be owed.
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Werfel continued: "People faced extremely unusual situations during the pandemic, which may have led some people to forget about a potential refund on their 2020 tax returns.
"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."
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