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Home » The IRS says it’s over $1 billion in unclaimed tax refunds, urging taxpayers to confirm eligibility
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The IRS says it’s over $1 billion in unclaimed tax refunds, urging taxpayers to confirm eligibility

adminBy adminApril 13, 2025No Comments4 Mins Read0 Views
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Eligible taxpayers who do not apply will lose money from the refundable tax credit program.

According to the Internal Revenue Service, more than 1.1 million taxpayers who fail to file their 2021 tax returns have only a few days left and could request a refund.

“The IRS estimates that taxpayers have not yet filed their 2021 tax returns, so they have not yet filed a refund of more than $1 billion,” the agency said in a statement on April 11. “If the refund is not filed due to a refund deadline, a refund request must be filed within three years of the due date to allow a refund. After the expiration of the three-year period, the refund law generally prevents the issuance of refund checks.”

The deadline for the filing declaration is April 15th. There could be more than 100,000 people from California and Texas, where the 2021 income tax refund could be due, the IRS said.

Other states with the highest number of taxpayers eligible for the 2021 refund are New York, Pennsylvania, Michigan, Ohio and North Carolina.

“It’s important to remember that if taxpayers have not filed returns in 2022 and 2023, their 2021 tax could be refunded,” the agency said. The median potential refunds taxpayers can get is $781.

“In addition, the 2021 refund amount will still apply to the IRS or state tax agencies to the amounts outstanding and may be used to offset other past federal obligations, such as unpaid child support or student loans.”

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In addition to refunds, taxpayers will lose receiving money from refundable tax credit programs such as earned income tax credits (EITCs) and recovery refund credits.

The IRS estimates that many “low to moderate income workers may be eligible for EITCs,” with the 2021 EITC worth up to $6,728 for people with qualified children.

The recovery rebate credit was aimed at individuals who did not receive a stimulus package from the federal government in 2021. Last December, the agency warned taxpayers who are eligible for credits that are lacking in credit to claim funds.

Tracking refund

After submitting a return, taxpayers can check the status of the refund via IRS refund. tool.

For returns this year, the refund status is usually displayed 24 hours after electronic filing. If a return was submitted the previous year, it may take up to 3-4 days. For those who submit a paper return, it may take four weeks to update their status.

To use the tool, taxpayers must submit Social Security or individual taxpayer ID number (ITIN), application status, and the exact amount of refund at the time of filing.

The agency has revealed that it could take five days for the refund to appear in your bank account. If a return is paid by check, it may take several weeks for the check to arrive by mail.

A group of bipartisan lawmakers reintroduced the IRS mathematics law in February, aiming to simplify agency error notifications issued to taxpayers.
“Tax filing is already burdensome and time-consuming. Customer service can be improved by enacting open and transparent communication between the IRS and taxpayers when tax errors are identified,” said Randy Fencera (R-Iowa), one of the lawmakers who introduced the bill, on February 14th.

“If the IRS finds an error in their tax return, the agency should clearly communicate the error to the taxpayer and explain why the tax refund is higher or lower than expected. So we are pleased that the IRS clearly spells out the error in their tax form and introduces the law to ensure that taxpayers not only understand the error, but also helps them challenge taxpayers to challenge taxpayers.”

According to an April 4 update from the IRS, agents have received more than 110 million returns for the 2025 filing season.

Over 67 million refunds have been issued in 2025, exceeding $21.1 billion. The average refund is $3,116, 3.5% more than last season’s concurrent rebate.



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