WASHINGTON, D.C. — The Internal Revenue Service (IRS) has issued a reminder to the 1.1 million taxpayers who have yet to file their federal tax returns for 2021. With over $1 billion in unclaimed refunds potentially at stake, individuals must file by the April 15, 2025, deadline to avoid forfeiting their money.
“There is no penalty for failure to file if a refund is due,” the IRS stated. However, taxpayers must act within three years of the original tax return due date to claim a refund. After that window closes, refunds are forfeited to the U.S. Treasury.
Taxpayers are also advised that any refund amount may be applied to outstanding debts such as unpaid taxes, child support, or federal obligations like student loans.
Additionally, taxpayers failing to file could lose out on valuable refundable tax credits. Among them, the Earned Income Tax Credit (EITC) for 2021 was worth up to $6,728 for eligible workers with qualifying children. Other credits, like the Recovery Rebate Credit, may also still be available.
The IRS recommends taxpayers begin gathering documents such as W-2s and 1099s as soon as possible and offers tools like the IRS Online Account and toll-free support at 800-TAX-FORM for those needing prior-year forms. Filing electronically and opting for direct deposit are the fastest ways to receive refunds.
By acting promptly, taxpayers can avoid missing the opportunity to reclaim significant sums owed to them. April 15 marks the final date for filing 2021 returns to secure any potential refunds.
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