$1.5 Billion in Tax Refunds Are Waiting To Be Claimed.
Have you been filing your U.S. tax returns on time? If not, did you know that you may be one of more than a million individuals who did not file a 2016 tax return, but who is due a tax refund?
Indeed, according to recent numbers released by the Internal Revenue Service, there are an estimated 1.4 million U.S. taxpayers who are owed refunds, but who did not file their 2016 tax returns. What’s tragic is that many of these individuals will not be able to receive money they are owed, because they haven’t filed their 2016 returns, and the three-year window to receive the refund for tax year 2016 is ending on July 15, 2020.
What many taxpayers do not know is that in Notice 2020-23, the IRS extended the due date for filing 2016 tax returns and claiming a refund for that year, to July 15, 2020. Normally, the three-year window would have elapsed on April 15, 2020, but thanks to the extended deadlines this year, taxpayers have had more time to file their 2016 returns.
If you are one of those 1.4 million people who did not file their 2016 tax return, how much of a refund might you receive? The IRS estimates the midpoint to be $861, which is to say, half of the refunds are worth more than $861 and half are worth less. This means that if you haven’t filed your 2016 tax return, you might be leaving hundreds of dollars on the table.
What’s worse, after the three-year window is closed, that money becomes the property of the U.S. Treasury. It is important to note that if you are due a refund, there is no penalty for filing late. Additionally, not filing tax returns means you won’t be able to collect an economic impact payment, or any future payments that you might be owed.
If you have not filed U.S. tax returns in the last few years, you owe it to yourself to get caught up with your taxes. Indeed, not only will you be able to have the peace of mind that comes with being compliant, you might be due a refund that you never knew about. In these uncertain economic times, one can use all the money they can get, whether it is an economic stimulus payment or a tax refund. Get in touch with us today to get caught up with your taxes, and put yourself in a position to collect money that is owed to you.