Written by Sharvan Kumar
The IRS holds approximately $1 billion in unclaimed tax refunds, primarily due to taxpayers not filing their returns or failing to claim their refunds.
Taxpayers must file their unclaimed returns within three years of the original filing deadline. After that, the money is forfeited to the U.S. Treasury.
Common reasons include taxpayers moving without updating their addresses, not filing taxes because their income was too low, or simply forgetting to submit a return.
To claim unclaimed refunds, taxpayers must have filed a return for the year in which the refund was due. They can also claim for prior years if they meet the eligibility criteria.
The IRS frequently urges individuals to check if they are owed refunds by using online tools or reaching out to the agency for help.
A significant portion of unclaimed refunds often belongs to low-income workers who may not be aware that they qualify for tax credits like the Earned Income Tax Credit (EITC).
Taxpayers can file a return for the year they missed or contact the IRS for assistance in recovering any unclaimed funds.
From East West Hunt