The Internal Revenue Service (IRS) has issued a timely reminder to taxpayers, stating that approximately $1.5 billion in unclaimed tax refunds from the 2019 tax year are still available.
$1.5 Billion in Unclaimed Tax Refunds
This means that individuals who have not yet claimed their tax refunds from that year could potentially be missing out on a significant amount of money.
The deadline to claim these unclaimed tax refunds has been set for next month, specifically July 17.
IRS Commissioner Danny Werfel highlighted the urgency of the situation, stating that time is running out for over a million people who are eligible for unclaimed tax refunds. The IRS provides several avenues for assistance and support in this regard.
Many individuals may have overlooked filing their 2019 tax return due to the challenges brought on by the COVID-19 pandemic. The IRS wants to ensure that people do not miss the opportunity to receive their refund.
Under normal circumstances, taxpayers typically have three years to file and claim their tax refunds. However, in response to the coronavirus pandemic, the deadline for 2019 unclaimed tax refunds was extended to next month.
This extension allows taxpayers additional time to gather the necessary information and submit their claims.
It is essential for taxpayers to be aware that the funds received from claiming their 2019 tax refund may be utilized to settle any outstanding debts owed to the IRS or another state tax agency. Furthermore, these unclaimed tax refunds may also be used to address unpaid child support or federal debts, such as overdue student loans.
Taxpayers seeking to claim their 2019 tax refund should also note that their refund checks may be withheld if they have not filed tax returns for the subsequent years, namely 2020 and 2021.
Median Unclaimed Tax Refund Amount
The median unclaimed tax refund amount for the 2019 tax year varies based on the state of residence.
New Hampshire claims the highest median refund at $974, while Idaho offers the smallest median refund at $758.
These unclaimed tax refund variations are determined by the specific tax laws and regulations in each state.
As the deadline approaches, taxpayers are strongly encouraged to review their records, consult the IRS resources, and promptly file their 2019 tax return to claim any outstanding refunds.
By taking fast action, individuals can ensure they receive the unclaimed tax refunds they are entitled to and alleviate any potential financial burdens.