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Wednesday April 24, 2024

Washington News

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IRS Wants to Pay $1.5 Billion in Refunds

On June 8, 2023, the Internal Revenue Service (IRS) published a letter to encourage an estimated 1.5 million people to submit tax returns and receive over $1.5 billion in refunds. The refunds are for the 2019 tax year, and the deadline for filing is July 17, 2023.

Most of the individuals due refunds are modest income taxpayers who have not filed a 2019 tax return. Many taxpayers are potentially eligible for refunds. The average refund in 2019 was $893.

IRS Commissioner Danny Werfel stated, "Time is running out for more than a million people to get their tax refunds for 2019. Many people may have overlooked filing a 2019 tax return due to the pandemic. We do not want people to miss their window to receive their refund. We encourage people to check their records and act quickly before the deadline. The IRS has several important ways that people can get help."

Normally, there is a three-year period to file and receive a tax refund. However, the return due date was delayed, and the deadline was changed from April 15 to July 17, 2023. A taxpayer must address, mail and ensure that the tax return is postmarked by July 17, to receive a refund.

Some low and moderate-income workers may also be eligible for the Earned Income Tax Credit (EITC). This could be worth up to $6,557 in 2019. Married couples filing jointly who have three children may qualify if their income is up to $55,952. Married couples filing jointly with two children can qualify with incomes up to $52,493 and those with one child can qualify with incomes up to $46,884. Finally, married couples filing jointly with no qualifying children can qualify with incomes up to $21,370.

The IRS reminds taxpayers that their refund may be held up if they have not filed their returns for 2020 or 2021 or owe the IRS additional tax. Some taxpayers may need additional help or assistance to prepare their return. There are several ways the IRS could help.

1. Copies of Key Documents — If you are missing Forms W-2, 1098 or 1099, you may request copies from an employer or bank.

2. Online Transcript — Taxpayers may obtain a transcript from IRS.gov by using the "Get Transcript Online" tool.

3. Request a Printed Transcript — Taxpayers may use IRS Form 4506-T to request the IRS send them a "wage and income transcript." This transcript shows all the tax forms received by the IRS. However, this printed copy could take several weeks to receive in the mail. The other options are much quicker and therefore recommended.

Published June 9, 2023
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