Move Quickly to Claim Your 2020 Tax Refunds

It is estimated that over 900,000 taxpayers have yet to file their 2020 federal tax returns, resulting in more than $1 billion in unclaimed tax refunds. In general, individuals have a three-year statute of limitations to file for a refund, or else the funds revert to the U.S. Treasury. The due date to submit a tax return claiming a tax year 2020 refund is May 17, 2024, which is a month later than typical years because the 2020 filing deadline was extended under the emergency COVID-19 provisions.

According to IRS records, there are over 50,000 New Yorkers who have yet to file their 2020 tax returns, with a potential median refund of over $1,000. In New Jersey, some 24,000 tax returns are outstanding with an average refund of over $900. Similarly, in Connecticut, almost 10,000 taxpayers have not filed for refunds averaging $978. Note, these prospective refunds can increase significantly for those filers eligible for certain refundable credits, such the Earned Income Tax Credit worth up to $6,660 for qualifying individuals.

If you have not filed your 2020 tax return, now is the time to do so. Even if you are missing key tax documents, such as W-2s or 1099s, accurate tax returns can be filed using information already on file with the IRS. Further, last month, the IRS announced a targeted campaign to audit more than 125,000 non-filers with incomes starting at $400,000 and going up to over $1 million.

For assistance with securing your 2020 tax refund and maintaining compliance with the IRS, please contact Alan Goldenberg, Principal and Leader of the State and Local Tax and Tax Controversy groups, or your Anchin Relationship Partner.