Who wouldn’t seize an revenue tax refund if that they had one coming?

About 940,000 individuals, it seems — as a result of they haven’t filed returns for the 2020 tax 12 months, though they could be due a reimbursement for that 12 months. However there’s nonetheless near a month left to file and acquire the refunds. The Inner Income Service estimates that the everyday refund for the individuals on this group is greater than $900.

“There’s cash remaining on the desk for lots of of hundreds of people that haven’t filed 2020 tax returns,” the I.R.S. commissioner, Daniel Werfel, mentioned in a press release. The deadline for most individuals to file a return and acquire the refunds, which complete about $1 billion, is May 17.

Potential refunds vary from a typical quantity of $761 in Idaho to greater than $1,000 in New York and Pennsylvania, the I.R.S. mentioned. (Precise quantities range relying on the filer’s tax scenario.)

Some individuals might merely have forgotten to file a 2020 return due to “extraordinarily uncommon conditions” in the course of the pandemic, Mr. Werfel mentioned. Nonetheless, mentioned Eric Smith, an I.R.S. spokesman, the variety of taxpayers probably due a refund this 12 months for 2020 is just not at a report stage. Last year, which was the three-year deadline to file and acquire unclaimed refunds from the 2019 tax 12 months — returns that had been initially due within the depths of the pandemic in 2020 — almost 1.5 million individuals had been probably due refunds, sometimes about $800.

The I.R.S., too, was affected by the pandemic. The company struggled to course of paper tax returns and correspondence, although the I.R.S. has “nearly eradicated our backlog of unprocessed paper returns” for particular person returns, Mr. Smith mentioned.

Should you don’t file a 2020 tax return by the cutoff, you’ll lose the refund — and the Treasury Division retains it. “Why depart that cash on the desk?” mentioned Tom O’Saben, director of tax content material and authorities relations with the Nationwide Affiliation of Tax Professionals.

On the whole, taxpayers have three years to file a return and declare refunds. (There’s no penalty for failing to file for those who’re getting a reimbursement.) Tax returns for 2020 had been due in 2021, however the submitting deadline that 12 months was postponed till Could 17 from the standard mid-April date due to the pandemic. So the I.R.S. has additionally stretched the three-year window for submitting these returns by a month.

Some unclaimed refunds could also be owed to part-time employees and others who didn’t earn sufficient cash to fulfill the requirement for submitting a return. (The submitting threshold in 2020 was $12,400 for single filers and $24,800 for {couples} submitting collectively; larger thresholds utilized for these 65 and older.)

Potential refunds might be larger than the I.R.S. estimates due to the impact of tax credit in addition to pandemic stimulus funds made in 2020. “The truth is these are conservative” estimates, Mr. Smith mentioned.

Some individuals could also be eligible for recovery rebate credits in the event that they didn’t obtain their pandemic stimulus checks — also referred to as financial affect funds — in 2020. Most eligible individuals did get their funds or have already claimed them as a tax credit score, the I.R.S. mentioned. But when they certified and didn’t obtain the funds, they will file a tax return to get the cash as a credit score — even when that they had minimal or no revenue. The credit score is “refundable,” that means you may nonetheless get the cash as a refund even for those who don’t owe any tax.

Additionally, many low- and moderate-income employees could also be eligible for the earned-income tax credit score, which can also be refundable. The earned-income tax credit score is predicated on household revenue and measurement. For 2020, the credit score was value as a lot as $6,660 (for somebody with revenue as much as $50,594 and three or extra kids).

“That’s a considerable amount of cash for working households,” Mr. O’Saben mentioned.

Even filers with out kids are eligible for the credit score if their revenue qualifies, mentioned Andy Phillips, director of H&R Block’s Tax Institute. In 2020, a childless particular person with revenue of as much as $15,820 was probably eligible.

Individuals who have missed submitting a tax return for one 12 months have usually missed different years as properly, mentioned Cynthia Leachmoore, president of the Nationwide Affiliation of Enrolled Brokers, whose members are federally approved tax professionals. Folks might initially fail to file just because they procrastinated, or maybe as a result of they owed cash, after which discover it tough to get again on monitor.

“They suppose it’s insurmountable,” she mentioned. “It turns into a tough cycle to interrupt.”

Should you haven’t filed a return for 2021 or 2022, the I.R.S. might maintain your 2020 refund till you do. Additionally, your refund could also be utilized to any tax quantities you continue to owe or used to offset unpaid baby assist or different past-due federal debt, like pupil loans.

Remember that 2020 returns have to be filed on paper, whether or not you do it your self or use a paid preparer. The I.R.S. accepts electronically filed returns for the present tax season and two years prior, Mr. Smith mentioned. You could find prior-year tax kinds on-line at IRS.gov, or use do-it-yourself software program to arrange your return. However you’ll must print the 2020 return and mail it to the I.R.S.

Ms. Leachmoore suggested mailing the return by licensed mail with a return receipt requested, so you should have proof that you just met the Could 17 deadline and that the I.R.S. obtained your return.

There are some exceptions to the prolonged Could submitting deadline, Mr. Smith mentioned, corresponding to army service in a fight zone or a “monetary incapacity” that stops you from managing your cash due to a bodily or psychological impairment.

However normally, he mentioned, it’s finest to file the return by Could 17 so you may declare your refund. “The earlier you file,” he mentioned, “the earlier you’ll get your cash.”

Listed below are some questions and solutions about late-filed tax returns:

What if I don’t have the tax paperwork I have to file a 2020 return?

You may ask your employer for W-2 wage statements, companies for 1099 kinds for those who labored for them as a contractor, and your financial institution for curiosity statements. Should you can’t get the paperwork that means, you may order a free “wage and revenue” transcript, which exhibits data from numerous paperwork the I.R.S. has obtained about you, together with W-2 wage statements and 1099 kinds, utilizing the I.R.S. “Get Transcript” on-line instrument. Because the deadline is quick approaching, “begin to do the legwork now,” Mr. O’Saben mentioned.

When can I count on my refund after submitting my 2020 return?

Filers shouldn’t count on speedy refunds as a result of paper returns sometimes take longer to course of, tax consultants mentioned. “It’s not going to be 21 days, like it’s for digital submitting,” mentioned April Walker, lead supervisor of tax apply and ethics with the American Institute of Licensed Public Accountants.

Mr. Smith on the I.R.S. mentioned that for those who filed a “full and correct” 2020 paper tax return, the refund needs to be issued in about six to eight weeks from the date the company obtained the return.

You may’t monitor your 2020 refund utilizing the I.R.S. “Where’s My Refund?” service as a result of it may be used just for the present tax season and two years prior, Mr. Smith mentioned. You may, nonetheless, create an I.R.S. account, which may be useful in monitoring older refunds, he mentioned.

What if I missed the April 15 deadline to file my 2023 tax return?

It’s sensible to file as quickly as you may, Mr. Smith mentioned. Should you’re owed a refund, you may’t get it till you file. And for those who owe tax, you’ll reduce penalties and curiosity charged. (You may ask for a waiver of penalties, you probably have a historical past of submitting on time.)