The Internal Revenue Service (IRS) has stated that over a billion dollars in tax refunds might still be unclaimed. Authorities have noted that nationwide, more than 1 million individuals did not file their 2020 returns, and there is no penalty for failing to submit the application if a refund is owed.
However, a refund-seeking return must be filed within three years of the refund’s due date to be eligible. Typically, the filing deadline for old refunds was April 15, but due to the COVID-19 pandemic, the 2020 filing deadline was extended until May 17, making May 17, 2024, the deadline for unfiled 2020 returns.
The IRS website indicates that after the three-year period expires, the refund statute generally prohibits issuing a refund check and applying any credits, including overpayments of estimated taxes or withheld amounts, to other fiscal years with underpayments.
To determine your eligible refund amount, you need to file your 2020 tax return. However, be aware that the IRS can claim those funds if you haven’t filed tax returns for 2021 and 2022. The reclaimed money could be used to pay any debts to the IRS or state tax agency, as well as debts such as child support or student loans.
Thousands Have Not Claimed Their Tax Refunds
The IRS estimates that 3,800 Maine residents did not file their taxes for the 2020 tax year. The agency reports that the average potential refund in Maine is $923. If you plan to file, it’s advised to start as soon as possible. Several options can help you get started:
- Request copies of key documents: If you’re missing Forms W-2, 1098, 1099, or 5498 for 2020, 2021, or 2022, request copies from your employer, bank, or other payments.
- Use Get Transcript on IRS.gov: If you no longer have contact with your employer or payers, request a full transcript of wages and income on IRS.gov.
- File Form 4506-T: Request a “wage and income transcript” from the IRS using Form 4506-T. This transcript includes data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498, and IRA contribution information.
- Obtain tax forms: Tax year 2020 Forms 1040 and 1040-SR, along with instructions, are available on IRS.gov or by calling toll-free 800-TAX-FORM (800-829-3676).
Where’s My Tax Refund? Find It NOW
For many taxpayers, April 15 marked the deadline for filing tax returns, unless you requested an extension or live in certain states. While the IRS has been issuing tax refunds over the past few months, receiving your refund isn’t immediate.
Learn how to track your refund status, understand status messages, handle IRS inquiries, and more tax tips. Check out when you might get your child tax credit and the top tax software for 2024 if you’ve filed for an extension.
Use the IRS’ “Where’s My Refund?” tool for quick updates on your refund status and any return rejections due to errors. To access these tools, provide your Social Security number or Individual Taxpayer Identification Number, filing status (single, married, or head of household), and refund amount in whole dollars.