Optima Tax Relief Reminds Taxpayers to Claim 2019 Tax Refunds Before Deadline 

The Internal Revenue Service (IRS) recently issued a warning to taxpayers who have not yet filed their 2019 tax returns. According to the IRS, approximately $1.5 billion in tax refunds for the 2019 tax year still remain unclaimed. Optima Tax Relief reminds taxpayers to file their 2019 returns before the July deadline. 

The clock is ticking for taxpayers who are owed refunds but have not taken action to retrieve them. The deadline to file and claim these refunds is July 17, 2023. The IRS is urging taxpayers who did not file their 2019 tax returns to act quickly in order to receive their refunds. By not filing, these taxpayers are essentially leaving money on the table, as the IRS is unable to issue refunds for previous years beyond the statutory deadline. If these unclaimed refunds are not filed for by the July deadline, they will become the property of the U.S. Treasury. 

It is important to note that many individuals who are eligible for refunds may not have filed their tax returns for a variety of reasons. Some people may not have realized they were eligible for a refund, while others may have simply forgotten to file. Additionally, certain individuals who are not typically required to file a tax return, such as low-income earners or students, may still be eligible for refundable tax credits, such as the Earned Income Tax Credit (EITC). Taxpayers who may be eligible for the EITC in 2019 had incomes below: 

• $50,162 ($55,952 if married filing jointly) with three or more qualifying children. 
• $46,703 ($52,493 if married filing jointly) with two qualifying children. 
• $41,094 ($46,884 if married filing jointly) with one qualifying child. 
• $15,570 ($21,370 if married filing jointly) without qualifying children. 

To claim a refund for the 2019 tax year, eligible taxpayers must file their tax returns by the July 17 deadline. Taxpayers who are owed a refund will not be penalized for filing late, as the penalty for late filing is based on the amount owed to the IRS. However, taxpayers should be aware that if they have outstanding tax liabilities for other years, the refund may be applied to those debts. 

Among the states with the highest number of unfiled individual returns are California with 144,700 and Texas with 135,300. The average potential refund for California filers is about $856, which brings the total potential refunds left on the table to nearly $142 million. Texas filers, on the other hand, could lose out on an average potential refund of $924, or a total of over $142 million. These figures do not include tax credits so the actual amount that taxpayers could lose out on is massive.  

The IRS is reminding taxpayers that there are several options available when it comes to obtaining key tax documents needed to file their 2019 returns. If you are missing old W-2s, or other documents, you can request these from your employer or other payers involved. If you’re unable to obtain your documents directly from the payee, you may request an online transcript on the IRS website for free. You may also submit Form 4506-T, Request for Transcript of Tax Return, which has key information regarding your wages and income. Note that this form can take several weeks to process, so other options might be best given the upcoming deadline.