Taxpayers Are Leaving $1.5 Billion (with a ‘B’) in Refunds on The Table. Here’s How to Get Your Share

Individuals who haven’t submitted for the 2016 tax year are lacking time: They need to submit their return by July 15 in order to gather refunds due to them for that year.
In all, some 1.4 million people have not submitted a 2016 tax return and have cash waiting on them at the IRS.
Tax returns from 2016 can’t be e-filed at this moment. Send your return by means of certified mail and track it online to guarantee your paperwork– and your refund– do not get lost in the shuffle.

Uncle Sam is resting on $1.5 billion in tax refunds from 2016, and taxpayers have two days to get their money or lose it.

July 15 isn’t just the due date for 2019’s federal tax return and taxes owed, it’s likewise the last day the Internal Revenue Service will accept late returns for the 2016 tax year.

Filers generally have three years to declare a federal tax refund. As soon as the window closes, you have missed out on the opportunity and the U.S. Treasury keeps the cash.
Individuals who have not declared the 2016 tax year are lacking time: They must submit their return by July 15 in order to collect refunds due to them for that year.
In all, some 1.4 million people haven’t submitted a 2016 income tax return and have cash waiting on them at the Internal Revenue Service.
Income tax return from 2016 can’t be e-filed at this point. Send your return via qualified mail and track it online to ensure your documentation– and your refund– don’t get lost in the shuffle.

Uncle Sam is resting on $1.5 billion in tax refunds from 2016, and taxpayers have 2 days to grab their money or lose it.

July 15 isn’t simply the due date for 2019’s federal tax return and taxes owed, it’s likewise the last day the Internal Revenue Service will accept late returns for the 2016 tax year.

Filers normally have three years to declare a federal tax refund. When the window closes, you have missed out on the opportunity and the U.S. Treasury keeps the cash.

Some 1.4 million people are due federal refunds from 2016. These checks are a good chunk of modification: The IRS approximates the average 2016 tax refund to be $861.

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Often life gets in the way of people who would otherwise submit on time. Anything from a health problem to a natural catastrophe could lead to filers missing out on income tax returns.

“Most of the time, if they didn’t file that 2016 return, they had something going on in their life,” stated Kathy Morgan, a registered agent at Puzzled by Taxes in Haughton, Louisiana.

For circumstances, back in 2016, catastrophic flooding in Louisiana cleaned out lots of paperwork for a few of Morgan’s customers, resulting in delays, she stated.

“I have lots of individuals who were attempting to reconstruct their organisation records from 2016 to get their returns submitted,” she stated. “They had 8 feet of water in their business and in their house.”

Better late than never ever

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Late filers who owe the IRS typically face steep charges. Stopping working to pay your taxes by the proper due date causes a charge of 0.5% of the tax owed for each month or part of a month the tax is overdue.

Fail to file on time and you’re on the hook for a penalty of 5% of the overdue tax for each month or part of a month that you’re late.

But if you fail to file and the taxman owes you, then you merely lose out on any money you’re entitled to.

Refunds aren’t the only opportunity you’ll lose because of the case. Tax credits for that year also head out the window.

Consider that the earned earnings tax credit was worth as much as $6,269 back in 2016, according to the Internal Revenue Service.

Got an old return?

Submitting an earlier year’s tax returns are a headache since they need filers and their tax specialists to dig through volumes of old invoices and statements.

“In some cases, it’s individuals who have some kind of Set up C service, and you’re attempting to recreate the records on costs, where they got their 1099s from, and you’re pulling bank statements,” stated Ann Kummer, Certified Public Accountant and partner at Kirshon & & Co. in Poughkeepsie, New York.

“The older they are, the harder they are to do,” she stated.

Filers who are simply getting to 2016’s returns have an additional barrier this year: the taxman’s huge mail stockpile in the middle of the coronavirus pandemic.

E-file can only accept the existing year’s returns and those going back two years, implying you can send 2019’s taxes electronically, in addition to those for 2018 and 2017.

That means 2016 returns need to be filed on paper.

And do not think you simply wait in line at the post workplace and expect a postmark prior to July 15.

“We suggest that customers mail it certified and get certified online tracking,” Morgan stated. “This method, you get the invoice acknowledgment and save it.”

It could be months before you get your refund from the IRS, and you wish to ensure you have a paper trail proving the company got your return on time.

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