1.1 million Americans must claim $1 billion in tax refunds, or lose the money forever

Published On:
1.1 million Americans must claim $1 billion in tax refunds, or lose the money forever

Once again, the Internal Revenue Service (IRS) announced that April 15, 2025 is the deadline for claiming stimulus checks not received during the Covid-19 pandemic, when the federal government distributed millions of dollars in stimulus checks.

Approximately 1.1 million people in the United States have that day as the non-postponable deadline to file tax returns for the 2021 tax year and request pending refunds. The agency believes that more than $1 billion is available for distribution and, if not claimed, will become the property of the US Treasury.

“Under the law, taxpayers typically have three years to file and claim their tax refunds,” the IRS said in a recent statement, emphasizing the importance of claiming the money.

Eligibility and process to receive that 2021 tax refund: $1,000 million to distribute

The process requires submitting the 2021 return by the deadline. Those who do not do so will lose the funds forever. The IRS recommends using updated forms and checking its portal for any outstanding payments.

Unclaimed refunds include credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit, as well as stimulus checks issued during the pandemic. People who did not file returns in 2021, particularly those who are low-income or do not have to file, may be eligible.

The United States Internal Revenue Code establishes a three-year deadline for claiming tax refunds. After that period, the federal government transfers unclaimed revenues to the Treasury, where they can no longer be claimed, and the Federal Reserve freely disposes of the money.

This limit primarily applies to residents who failed to declare in 2021 due to ignorance or errors. Tax defense groups have ramped up information campaigns to alert potential beneficiaries.

Recommendations for unclaimed 202 tax refund applicants

The IRS recommends gathering documents such as W-2s, 1098s, and 1099s for 2021 before filing. Those who do not have these records can obtain them from their employers or educational institutions, or use the “Get Transcript Online” tool on the agency’s website.

Submitting this request after April 15, 2025 will not result in refunds. However, it is recommended to submit tax returns to avoid fines or audits.

Analysts note that those affected by the expiration are typically low-income individuals, informal workers, or those who have changed addresses. Treasury data show that approximately 5% of eligible households did not claim their checks in 2021.

SOURCE

Leave a Comment