Posted by The IRS has just reminded taxpayers that, after April 17, 2018, it will be too late to claim refunds from 2014. If you have not filed a return for 2014, or if you have changes to your 2014 return that could produce a refund, you need to act now.
What is at stake
According to the IRS’s statistics, approximately 108,000 individuals in Texas have unclaimed refunds of almost $122 million from 2014. The estimated median unclaimed refund in Texas for that year is $899. This is for just one year. There are unclaimed refunds for 2015 and 2016 as well. You can find statistics on unclaimed refunds for all states on the IRS website, here.
How this situation arises
We have commented before on how individuals lose their refunds by waiting too long to claim them. (You can find our prior post here.) In the typical case, taxes are withheld from an individual’s paychecks. The employer pays to the IRS the amounts withheld. If the amounts withheld exceed what the individual owes in taxes for the year, he or she should receive a refund. In the typical case of a lost refund, however, the individual does not file a return for the year. It is by filing a return that the individual claims a refund. Generally, if the individual does not file the return within three years from the date it was due, the individual will lose the ability to obtain the refund. Tax returns for 2014 were due in April 2015. This is why the deadline to claim 2014 refunds expires on April 17, 2018.
What has to be done by April 17, 2018?
You (and your tax preparer ) can no longer e-file your 2014 tax return. Instead, you will have to file a paper return. To meet the deadline, you will need to mail the return so that it is postmarked no later than April 17, 2018. In our view, the easiest and safest way to meet this requirement is to mail your return at a U.S. Post Office by certified mail. Don’t use an automated service at the Post Office; you should go to the counter and get a certified mail receipt that is hand-stamped by the clerk. This receipt is evidence of filing that you can submit to the IRS if necessary. (Note: as of today, you can still e-file 2015 and 2016 tax returns.)
Have questions?
If you have questions about prior-year returns, we would be happy to help. Just give us a call or send us an e-mail or text message. You can find our contact information here.