The Internal Revenue Service (IRS) has revealed that approximately $1 billion in tax refunds from the year 2020 are still unclaimed. This revelation comes as the IRS urges around 1 million individuals who have yet to file their tax returns for that year to do so promptly, as they may be eligible for refunds.

Unclaimed Refunds and Eligibility

According to the IRS, there are about 1 million people who haven’t filed their tax returns for 2020 but could potentially receive refunds if they do. These individuals are encouraged to take advantage of this opportunity before the deadline on May 17.

No Penalty for Late Filings

The IRS emphasizes that there will be no penalties for those who file late if they are owed a refund. However, individuals must file their return claiming a refund within three years of its due date to be eligible for the refund.

Deadline Extension Due to COVID-19

The filing deadline for 2020 was extended to May 17, 2021, in response to the COVID-19 pandemic. This extension effectively pushes the three-year window for unfiled 2020 returns to May 17, 2024.

Consequences of Missing the Deadline

After the expiration of the three-year period, the refund statute generally prevents the issuance of refund checks and the application of any credits to other tax years. This means that individuals who miss the deadline risk losing their opportunity to claim their refunds for the 2020 tax year.

Importance of Filing on Time

Filing tax returns on time is crucial, not only to avoid penalties but also to ensure that individuals receive any refunds they are owed. The IRS encourages all eligible taxpayers to take advantage of this opportunity before it’s too late.

Conclusion: Act Now to Claim Your Refund

With approximately $1 billion in unclaimed tax refunds from 2020, the IRS is urging eligible individuals to file their tax returns before the May 17 deadline. Failing to do so could result in the loss of potential refunds. Don’t miss out on what you’re owed—file your taxes today and claim your refund!

This story was reported from Detroit.

Sources:

• Internal Revenue Service (IRS)
• Detroit News

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