The Internal Revenue Service (IRS) has revealed that approximately 88,000 Californians have yet to claim their tax refunds for the 2020 fiscal year.
This total amounts to roughly $103 million in unclaimed tax refunds.
The agency is now acclaiming these taxpayers to file their returns to recover their due refunds in order to avoid losing out on their rightfully earned money.
The IRS has announced that there is no penalty for filing a late return for those who are due a refund.
Around the country, nearly a million taxpayers are facing a May 17, 2021 deadline to file their tax returns and claim their remaining refunds for the 2020 tax year.
This includes states such as California, Texas, Florida, and New York, with high numbers of unclaimed refunds.
In 2020, the average median refund was $932, highlighting the significant sum taxpayers are likely to miss out on.
IRS Commissioner Danny Werfel has stressed the urgency for taxpayers to claim their refunds before the approaching deadline, urging those who haven’t filed a return yet to gather their financial documents which include W-2, 1098, 1099, or 5498 forms.
A previous three-year filing window was in place to claim tax refunds.
Unclaimed 2020 tax refunds in California
However, unclaimed funds were transferred to the U.S. Treasury after this period elapsed.
Taxpayers who have unfiled 2021 and 2022 tax returns will have their 2020 tax refunds held back until further submissions are made.
Although a deadline extension was granted for the 2020 tax filings due to the COVID-19 pandemic, the IRS has made clear that no similar concessions will be made in the future.
Taxpayers are encouraged to file on time to avoid losing out on their rightful 2020 tax refunds, and to avoid potential penalties for late filing and unfiled taxes for 2021 and 2022.
It’s advisable for taxpayers to seek professional tax advice for proper filing and handling of any potential financial issues with the IRS.
In order to reduce the number of unfiled tax returns and undisbursed refunds, it is imperative for individuals to be aware of tax laws and deadlines.
