Since 2017, the IRS owes -- that’s right, owes – Americans $1.3 billion in unclaimed tax returns, the agency said on Monday.
The IRS said that in total, 1.3 million tax payers who did not file a 2017 Form 1040 federal income tax return are owed a refund. The IRS said the median refund would be for $865.
The IRS says that the law provides most taxpayers a three-year window to claim the refund. If they do not file a return within three years and goes unclaimed, the money becomes the property of the US government. The deadline, the IRS says, is May 17.
“The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.”
The IRS said that many low- and moderate-income workers lose out on the Earned Income Tax Credit by not filing a tax return. In 2017, the credit was worth up to $6,318. In 2020, that figure jumped to $6,660, depending on income and number of children.
To assist in finding out if you’re eligible, the IRS encourages Americans to obtain a tax transcript from 2017 by clicking here.
To see if you qualify for the Earned Income Tax Credit, click here.