Taxpayers running out of time to claim 2017 refunds

WASHINGTON (KIFI)-The Internal Revenue Service estimates unclaimed income tax refunds worth more than $5,572,300 await about 6,200 Idaho taxpayers who did not file a 2017 Form 1040 federal income tax return.

Of that, the median potential refund is $727…meaning half-above and have-below that median.  

In Wyoming, about 3,100 taxpayers may have refunds worth more than $3,273,400 for a median refund of $944.

“The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck Rettig. “Time is quickly running out for these taxpayers. There’s only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return.”

The law provides most taxpayers with a three-year window of opportunity to claim a tax refund, but if they do not file a tax return within three years, the money becomes property of the U.S. Treasury.   This year, the window closes on May 17, 2021.

Some taxpayers stand to lose more than payroll withholding.  Many low and moderate-income workers may be eligible for the Earned Income Tax Credit.  For 2017, the credit was worth as much as $6,318.

Taxpayers seeking a 2017 tax refund may have their checks withheld if they have not filed tax returns for 2018 and 2019.  In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

Current and prior year tax forms (such as the tax year 2017 Form 1040, 1040A and 1040EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676).

Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2017, 2018 or 2019 should request copies from their employer, bank or other payer.