The Internal Revenue Service (IRS) has issued a warning to residents of Texas, signaling the potential loss of over $1 billion in unclaimed tax refunds from the year 2020. As the May 17 deadline approaches, approximately 93,400 individuals in Texas alone could miss out on refunds averaging $932 each.
The IRS Commissioner, Danny Werfel, emphasized the urgency, stating, “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds.” Failure to file for these refunds before the deadline means the funds will revert to the U.S. Treasury.
The pandemic-induced postponement of the usual April 15 deadline to May 17 has granted taxpayers extra time to claim their refunds. However, individuals must act swiftly to avoid missing out. Those who haven’t filed returns for 2021 and 2022 will face a withholding of their 2020 refunds until they fulfill their current tax obligations.
According to Werfel, many individuals may not even realize they are owed a refund, hence the encouragement for everyone to review their records promptly. Taxpayers are advised to gather necessary documents such as W-2, 1098, 1099, or 5498 forms from their employers or banks. Additionally, they can utilize the “Get Transcript Online” tool on IRS.gov to order a free wage and income transcript.
The IRS’s latest statistics indicate that over 71.5 million individual tax filings have been submitted thus far in the current tax season. However, with nearly a million unclaimed refunds on the brink of expiration, the urgency for Texans to act cannot be overstated.
As the clock ticks towards the May 17 deadline, taxpayers are urged to take proactive steps to ensure they receive the refunds rightfully due to them. Failure to do so could result in the loss of significant financial benefits.
In the face of this looming deadline, the IRS continues to emphasize the importance of timely tax compliance and awareness among taxpayers, aiming to ensure that every eligible individual receives their rightful refunds.