$1 Billion in Tax Refunds Remain Unclaimed as May 17 Filing Deadline Approaches

The IRS is reminding taxpayers who have not filed their 2020 returns to do so quickly or risk losing out on unclaimed refunds. Nearly 940,000 Americans have unclaimed refunds from the 2020 tax year worth an estimated $1 billion, the IRS said on March 25. The individuals face a May 17 deadline to submit their returns. The median refund is $932. American citizens typically have up to three years to file and claim refunds, after which the money goes to the U.S. Treasury. Since taxpayers may find it difficult to gather information necessary to file returns for 2020, the IRS outlined three ways to access such information: Taxpayers who are missing their W-2, 1098, 1099, or 5498 forms can request copies from their employer, bank, or other payers. Those who are unable to get these forms from employers, banks, or other payers can order a free wage and income transcript at IRS.gov using the agency’s online tool. The agency noted that this will be the quickest and easiest option for many individuals. A third way is for the individual to file a 4506-T form with the IRS, requesting a “wage and income transcript.” Taxpayers can then use information to file their returns. The agency warned that written requests for such transcripts can take several weeks. As such, taxpayers are encouraged to try out other options first. Usually, the deadline to claim old refunds is around the regular tax deadline, which is April 15 this year. The three-year window for the 2020 returns had been extended to May 17 due to the COVID-19 pandemic....