Unclaimed Tax Refund: What occurs to unclaimed IRS refunds?

On April 18, Americans will need to ensure their 2021 tax return has been filed or an extension has been requested to avoid possible consequences.

It’s also the last chance for people in the United States to claim old tax refunds from 2018.

The IRS recently confirmed they have approximately 1.5 billion dollars worth of unclaimed tax refunds from 1.5 million Americans who haven’t filed tax returns.

When is the IRS deadline to claim a tax refund for 2018?

The IRS can hold on to unclaimed tax for three years so Monday, April 18 is the deadline to claim back money from four years ago.

Tax returns for previous years cannot be filed electronically, so make sure you post the proper IRS regional office and postmarked by April 18.

Taxpayers in Maine and Massachusetts have an extra day do to this year, until April 19, due to the local observance of Patriots’ Day on April 18.

What happens to unclaimed IRS refunds?

If you don’t claim back your tax, the money will go to the Department of the Treasury. The unclaimed money will be applied to any amounts still owed to the IRS or a state tax agency.

It may also be used to offset unpaid child support or past due federal debts, such as student loans.

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