Staff Reports
The IRS has sent out a final notice to remind nearly 940,000 individuals in the United States who did not file their 2020 tax returns that they could be entitled to a refund. The total amount owed by the IRS in unclaimed refunds adds up to over $1 billion, with a significant number of individuals residing in Washington, D.C., Maryland, and Virginia. The deadline for claiming these refunds is quickly approaching.
In Washington, an estimated 2,900 people may be eligible for a refund, with some potentially receiving up to $968. In Maryland, approximately 22,000 individuals could be owed an average of $991, while in Virginia, the IRS estimates that 25,900 people could be owed an average of $914 each.
The IRS emphasized that there will be no penalty for individuals who failed to file their tax returns if a refund is due, but it stressed that refunds must be claimed within three years after the filing deadline. Given that the usual April 15 deadline was extended to May 17 due to the COVID-19 pandemic, individuals need to act quickly as Friday marks the end of the three-year period.
Moreover, some individuals may also qualify for additional refunds from programs that were implemented during the pandemic, such as the COVID-era Recovery Rebate Credit in 2020. According to the IRS, the Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments, also referred to as stimulus payments, distributed in 2020 and 2021.
It is important for individuals to be aware of these potential refunds, as they could provide much-needed financial relief for those who did not file their taxes in 2020.
