Time is Running Out for Americans to Claim Unclaimed Tax Refunds, IRS Warns

Time is running out for some Americans to claim their share of unclaimed tax refunds, the Internal Revenue Service (IRS) has warned. With the deadline for filing 2020 tax returns approaching, many individuals may still be eligible to receive Economic Impact Payments related to coronavirus relief.

The IRS issued the first and second rounds of Economic Impact Payments, commonly known as stimulus checks, in 2020 and early 2021. However, some individuals who did not file a tax return in 2020 may have missed out on these payments. The deadline for claiming any outstanding refunds typically aligns with the annual April tax deadline, which was extended to May 17 this year due to the pandemic.

IRS Commissioner Daniel Werfel emphasized the importance of individuals reviewing their files and gathering necessary records to ensure they do not miss the upcoming deadline. He noted that many people, including students and part-time workers, may have overlooked potential refunds.

In addition to the Recovery Rebate Credit, other refunds such as the Earned Income Tax Credit (EITC) are also available for eligible individuals. The EITC, which was worth up to $6,660 for qualifying taxpayers with children in 2020, remains unclaimed by many low- and moderate-income workers.

As the deadline approaches, Werfel urged taxpayers to take action and file their 2020 tax returns to claim any refunds they may be owed. Failure to do so within the specified timeframe could result in the unclaimed funds becoming property of the U.S. Treasury.

It is essential for individuals to be aware of the potential refunds available to them and to take the necessary steps to claim them before the deadline. By doing so, they can ensure they receive the financial assistance they are entitled to during these challenging times.