IRS Owes MA Residents $38.4 Million In Refunds: Time Running Out To Claim

MASSACHUSETTS — Tax Day is just a few days away, but federal officials are spreading the word about another upcoming deadline for Massachusetts who are owed another check.

Almost 1.5 million Americans have just a few months left to file for unclaimed refunds from the 2019 tax year, including nearly 36,000 in Massachusetts, the Internal Revenue Service said this week.

The IRS estimates the unclaimed cash totals $1.5 billion nationwide. The combined unclaimed refunds in Massachusetts total $38.4 million, with a median refund of close to $1,000, the IRS said.

Officials pointed to widespread interruptions during the early days of COVID-19 as the likely culprit for why so many returns went unfiled.

"The 2019 tax returns came due during the pandemic, and many people may have overlooked or forgotten about these refunds," IRS Commissioner Danny Werfel said in a news release. "We want taxpayers to claim these refunds, but time is running out. People face a July 17 deadline to file their returns. We recommend taxpayers start soon to make sure they don't miss out."

In most cases, Americans have three years to file and claim tax refunds from previous years. After that, unclaimed funds become the property of the U.S. Treasury. Usually, that deadline coincides with Tax Day, but this year the IRS moved it until July 17 to align with the 2020 extension.

"With the pandemic taking place when the 2019 tax returns were originally due, people faced extremely unusual situations," Werfel said. We frequently see students, part-time workers and others with little income overlook filing a tax return and never realize they may be owed a refund. We encourage people to review their records and start gathering records now, so they don't run the risk of missing the July deadline."

Taxpayers who are eligible for the Earned Income Tax Credit (EITC) can receive additional funds worth more than $6,500. The IRS said 2019 checks may be held for filers who did not send returns in 2020 or 2021. The balance can also be used to cover other unpaid taxes, unpaid child support and past-due federal debts.

Residents can find instructions for filling out their 2019 taxes on the IRS website or get assistance by phone at 1-800-829-3676.

Here are a few more tips from the IRS:

• Request copies of key documents: Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2019, 2020 or 2021 can request copies from their employer, bank or other payers.
• Use Get Transcript Online at IRS.gov. Taxpayers who are unable to get those missing forms from their employer or other payers can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. For many taxpayers, this is by far the quickest and easiest option.
• Or request a transcript. Another option is for people to file Form 4506-T with the IRS to request a "wage and income transcript." A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498 and IRA contribution information. Taxpayers can use the information from the transcript to file their tax return. But plan ahead – these written requests can take several weeks; people are strongly urged to try the other options first.