Some 1 million Americans could be missing out on tax refunds for 2020, the year the COVID-19 pandemic began, according to the IRS.

That’s because those people have not filed their 2020 tax returns, and they face a May 17 deadline to do so, the agency said.

April 15 is the customary filing deadline for people to collect old refunds — taxpayers have three years after the filing due date to file and claim any money entitled to them — but the IRS made an exception for 2020 because of the health emergency.

The IRS estimated that more than $1 billion in refunds are unclaimed.

“By missing out on filing a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2020,” the IRS wrote, Newsweek reported. “The estimate does not include credits that nonfilers may be eligible to receive. Credits include the Earned Income Tax Credit, the Recovery Rebate Credit or other credits that may be applicable.”

Taxpayers who miss the May 17 deadline to submit their 2020 returns won’t be issued a refund.

“No appeals, no way to challenge in court, just out of luck. End of story, unfortunately,” Bill Smith, national director of tax technical services at CBIZ MHM’s National Tax Office in Washington, D.C., told Newsweek.

“The IRS knows it has payments attributable to SSNs [Social Security numbers] where there is no corresponding 1040 on file. The IRS, as a result, knows there is a potential refund due. That is why it is trying to get the word out that those people need to file by May 17, 2024.”

The average median refund is $932 for 2020. Texas (93,400), California (88,200), Florida (53,200), and New York (51,400) have the most taxpayers potentially eligible for refunds.

IRS Commissioner Danny Werfel said in a statement: “We want taxpayers to claim these refunds, but time is running out for people who may have overlooked or forgotten about these refunds. There’s a May 17 deadline to file these returns so taxpayers should start soon to make sure they don’t miss out.”

The Associated Press contributed to this story.

Charlie McCarthy ✉

Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.


© 2024 Newsmax. All rights reserved.

Read the full article here

Share.

Comments are closed.