The IRS recently announced approximately $1 billion in unclaimed refunds for the 2020 tax year. This dollar amount affects almost 939,000 taxpayers. These monies stem from individuals who still need to file a tax return for the 2020 tax year.
2020 was an extraordinary year for many individuals: some may have forgotten to file their tax returns, or some may have had challenges getting their returns filed on time. If your 2020 tax return had to be paper filed, you should ensure the IRS processed it. To do so, download the IRS2GO app (https://www.irs.gov/help/irs2goapp) or request a transcript (https://www.irs.gov/individuals/get-transcript).
Pursuant to Federal law, taxpayers must file their tax return three years from the original due date to claim any refund. If a taxpayer does not file within three years, their refund money becomes the property of the U.S. Treasury.
Due to the COVID-19 pandemic, an extended window to file was granted for 2020. This extended window means the deadline to file an original or amended tax return for 2020 is Friday, May 17, 2024.
The IRS estimates the average median refund for 2020 to be $932. This figure does not include the Recovery Rebate Credit, the Earned Income Tax Credit (EITC), or any other credits that may be applicable.
Please keep in mind that the IRS may hold 2020 refunds if a tax return for 2021 and/or 2022 has not been filed. In addition, if a taxpayer has an outstanding balance owed to the IRS or state tax agency, unpaid child support, or past due Federal debts, any 2020 refund amount would be applied to these amounts first before being refunded.
If you have any questions or need assistance, please contact your WG advisor immediately.
