Maybe you’re unknowingly letting money go to waste and giving it to the Federal Reserve: and maybe, also unknowingly, the time is about to come when you won’t be able to claim it because there’s a deadline. We’re talking about more than $1.1 billion in checks that the Internal Revenue Service (IRS) has been holding onto since 2021 and that have gone unclaimed.
April marks the deadline to claim more than 1 million in stimulus checks, which are actually part of a more ambitious program of tax refunds sent in 2021 (in the pandemic-era) and that the Federal Government has to keep for at least 3 years: the deadline is about to expire and those who do not comply will lose that money forever.
Who can claim their 2021 IRS stimulus payments?
An IRS official commented on these refund checks, explaining that they correspond to payments sent by the federal government under the Economic Impact Payments (EIP), a fund that was created by the Cares Act of March 2020. At that time, a first round of checks of $1,200 per person and $500 per qualifying dependent minor had been approved.
A second round of checks sent $600 checks per eligible adult or child in December 2020, and the third is from the Rescue Plan, from March 2021, which had sent $1,400 per eligible adult and child. This last is the batch of checks that can still be claimed.
The IRS clarified that most recipients have already received their payments or a Recovery Rebate Credit (for those who did not get the full amount). However, in December it identified that nearly one million taxpayers did not claim this credit on their 2021 returns, either by leaving the field empty or incorrectly marking it as $0.
At the time, the agency announced it would notify those affected and send payments of up to $1,400, either by direct deposit or check, before the end of January. On the other hand, those who did not file taxes in 2021 (due to unemployment or other reasons) could also be eligible if they file their return before April 15.
IRS recommends acting soon: deadline is approaching
The agency urged taxpayers to gather the necessary documentation to file 2021 taxes, suggesting:
- Create or log into an IRS online account.
- Request copies of documents from employers or banks.
- Ask the IRS for a tax return or account transcript.
It also warned that refunds could be withheld if 2022 and 2023 returns have not been filed, and that the amounts claimed could be used to pay off federal or state debts.
- Refund status can be tracked online:
- Current electronic returns: 24 hours later.
- Previous electronic returns: 3-4 days later.
- Paper returns: 4 weeks later.
A complicated tax season: employees reduction and budget cuts
Budget cuts to the IRS, ordered by President Donald Trump and DOGE Secretary Elon Musk, have made it difficult to serve taxpayers. In February, more than 6,000 employees were laid off as part of the federal government’s downsizing efforts.
Although the Inflation Reduction Act of 2022 allocated funds to modernize the IRS, subsequent budget adjustments have affected its operational capacity. If you think you qualify for these stimulus payments, you should act quickly and not leave it to the last minute. Remember that the deadline is April 15, and if you don’t claim the money by then, it will become part of the United States Federal Reserve.
