Over $1.5Bn in refunds owed by IRS to taxpayers

Over $1.5Bn in refunds owed by IRS to taxpayers

Over $1.5Bn in refunds owed by IRS to taxpayers

More than a million taxpayers are due for a refund from the IRS from the year 2016 till now, resulting in over $1.5billion dollars still being with the IRS. Being due for a refund could probably be because more than the required tax funds have been withheld from the wages of a taxpayer or that the taxpayer has made too much payment exceeding the amount of tax necessary to be paid. Therefore, the remaining amount needs to be paid back to the taxpayer as a refund from the Internal Revenue Service.

The Internal Revenue Service claimed that it currently has over $1.5billion in tax refunds of taxpayers that have been left unclaimed with them since 2016. This is probably so because most of these taxpayers due for a refund have failed to file their federal income tax returns to claim it. Any taxpayer due for a refund needs to file a federal income tax return in order to claim the tax refund.

Usually, when a tax refund is available, a taxpayer is always given a 3years period during which they can claim their federal tax refund, but if it is not claimed within the given period, the money is retained by the US treasury. For example, the taxpayers owed a refund since 2016 would have been required to file for their federal income tax return on or before the Tax day of 2020. Usually, tax day is always April 15th of every year, but it was extended just for 2020 to July 15, 2020, due to the problem posed by the coronavirus pandemic.

Since the Tax day for 2020 (July 15, 2020) has passed already, Taxpayers that didn’t claim their tax refund from the year 2016 have already lost the opportunity to claim it and the money has already probably being deposited in the US Treasury. It’s almost like donating to the government. However, taxpayers that actually need their money back should also realize the IRS is willing to refund them, if only they take the required steps to claim their refunds.

If you have refunds with the IRS and have filed your tax returns but you haven’t gotten any refund from the IRS or if you got only a part of the actual amount of your refund, it is probably because you owe money in unsettled back taxes, student loans, child support, etc. Your tax refund may have been used by the IRS to offset all or part of your debts automatically.

However, other taxpayers that have no tax debts or obligations but are due for a tax refund need to act fast and claim it by filing their tax returns before the three-year gap elapses. This is because, after the deadline, there would no longer be an opportunity to claim your tax refunds.

Therefore, if you are among the over 1 million people being owed a refund by the IRS, all you need to do is to file your tax return and claim the refund. Most taxpayers get scared about filing their returns because of the penalties that might have accrued on the amount to be paid due to their failure to file, however they need to realize that when a refund is due, there is always no given penalty for filing late. One has to let go of the fear of penalties and file for tax returns when appropriate because filing has a lot of advantages.

One can claim their federal income tax refund by filing their federal tax returns and due to filing, one can also be eligible for Earned income tax credits for families with low incomes which can be pretty high at times.

In the end, taxpayers tend to have more to lose for not filing their federal income tax returns when they are due. The IRS is willing to refund every taxpayer due for a refund, but the majority of taxpayers (due to ignorance, busy schedules, and procrastination) have refused to utilize the 3-year opportunity period given to them by the IRS to claim their tax refunds.

For taxpayers due for a refund since 2016, the opportunity to claim it has elapsed, so thank you for donating to the US Treasury; it will be put to good use. However, for other taxpayers due for a refund from 2017 to 2019, your money is still with the IRS and is ready to be refunded back to you. So file your federal income tax return today and claim it.

Need help filing your returns for a tax refund? Get the best team of tax professionals on your side today.

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