IRS Urges Taxpayers to Claim Share of $1 Billion in Refunds Before May 17 Deadline
Taxpayers Alert: May 17 Deadline to Claim $1 Billion in Refunds Approaches, IRS Issues Reminder
With a looming deadline approaching the Internal Revenue Service (IRS) has issued a critical reminder to taxpayers: May 17 marks the final opportunity for those who did not file their tax year 2020 returns to potentially claim a share of an estimated $1 billion in refunds, according to the published article of KARK. Notably, there will be no penalties for late filers if a refund is owed. However, the return must reach the IRS within three years of the due date, with this year’s extension due to the COVID-19-related delay in 2020’s filing deadline which was pushed beyond mid-April. This deadline not only presents the last chance for taxpayers to claim old refunds but also to collect any owed tax credits. Those who may have overpaid or had excessive withholding could miss out on both a refund check and the opportunity to apply the balance to other tax years.
Taxpayers who did not file in tax year 2020 risk missing out on potential tax credits including the Earned Income Tax Credit and the Recovery Rebate Credit which could amount to significant sums for qualifying individuals and families. To ensure compliance with the impending deadline the IRS advises taxpayers to initiate the filing process promptly, as gathering the requisite documentation from employers, banks or other payers may take time. Additionally, individuals unsure of their filing obligations can access guidance from the IRS to determine whether filing a return is necessary. With the clock ticking obtaining a free wage and income transcript from IRS.gov is recommended for those seeking to meet the May 17 cutoff and potentially secure refunds or tax credits.
Don’t Miss Out on $1 Billion in Refunds: IRS Reminds Taxpayers of May 17 Deadline
Furthermore, the IRS emphasizes the importance of prompt action to beat the May 17 deadline urging taxpayers to begin the filing process as soon as possible. Given the potential complexity of gathering necessary documents from various sources such as employers and financial institutions initiating the process promptly can help ensure timely submission. Taxpayers are encouraged to utilize resources available on IRS.gov, including free wage and income transcripts to facilitate the filing process and determine their filing obligations. With the deadline rapidly approaching individuals are advised to take proactive steps to avoid missing out on refunds or tax credits for which they may be eligible.