IRS says nearly $1B in refunds still unclaimed from 2020 and 2021 (2024)

FAQs

IRS says nearly $1B in refunds still unclaimed from 2020 and 2021? ›

IRS says $1 billion in tax refunds available to people who did not file tax returns in 2020, 2021. The IRS says there's $1 billion in past tax refunds from 2020, 2021 and 2022 to people who did not file tax returns in those years. CHICAGO (WLS) -- Here's some good news on Tax Day: you may have extra money owed to you.

Unclaimed tax refunds totaling about $1 billion remained unclaimed at the IRS because millions of taxpayers hadn't filed tax returns for the 2020 tax year. (In other words, you might have had money waiting for you and not have known.)

The IRS is required to keep the filing open and hold on to unclaimed income tax refunds for three years. If you don't file for the tax refund after three years, the money becomes property of the US Treasury, and you won't be able to get it back.

The IRS estimates more than $1 billion in refunds remain unclaimed because people haven't filed their 2020 tax returns yet. The state-by-state table below shows how many people are potentially eligible for these refunds, and the average median refund in each state.

If the check wasn't cashed, you'll receive a replacement check once the original check is canceled. If the refund check was cashed, the Bureau of the Fiscal Service (BFS) will provide you with a claim package that includes a copy of the cashed check.

Limitation on allowance of credit and refunds – Claim filed within 3 year period. (A) The amount of the refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return.

The IRS generally has 10 years – from the date your tax was assessed – to collect the tax and any associated penalties and interest from you.

If the IRS is reviewing your return, the review process could take anywhere from 45 to 180 days, depending on the number and types of issues the IRS is reviewing.

What eventually happens to unclaimed deposits? Banks shift their unclaimed deposits to RBI's Depositor Education and Awareness (DEA) Fund. If someone claims an unclaimed deposit, the RBI transfers the amount to the concerned bank.

The IRS issues most refunds in fewer than 21 calendar days. You can check the status of your refund with “Where's my refund?” on IRS.gov or the IRS2Go mobile app.

Can tax refunds expire? ›

Taxpayers typically have three years to file and claim tax refunds, otherwise the money becomes the property of the U.S. Treasury.

If the IRS thinks you claimed erroneous deductions or credits, the IRS can hold your refund. In this case, the IRS will audit you to figure out whether your return is accurate. If you prove to the IRS that you correctly took the deductions and/or credits, the IRS will issue your refund or corrected refund.

If you owe a federal tax debt from a prior tax year, a debt to another federal agency, or certain debts under state law, the IRS may keep (offset) some or all your tax refund to pay your debt.

If you were expecting a federal tax refund and did not receive it, check the IRS Where's My Refund page. You will need to enter your Social Security number, filing status, and the exact whole dollar amount of your refund.

How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years.

Claim a Refund

If you are due a refund for withholding or estimated taxes, you must file your return to claim it within 3 years of the return due date. The same rule applies to a right to claim tax credits such as the Earned Income Credit.

Use the IRS Where's My Refund tool or the IRS2Go mobile app to check your refund online. This is the fastest and easiest way to track your refund. The systems are updated once every 24 hours. You can contact the IRS to check on the status of your refund.

The IRS can take some of your paycheck

The IRS determines your exempt amount using your filing status, pay period and number of dependents. For example, if you're single with no dependents and make $1,000 every two weeks, the IRS can take up to $538 of your check each pay period.