According to IRS estimates, nearly 143,000 taxpayers in California have yet to submit their 2022 returns. Together, they account for roughly $1.2 billion in unclaimed refunds, with an average amount of about $680 per person.
A Strict Three-Year Window Leaves No Room for Delay
The IRS operates under a three-year statute of limitations for issuing tax refunds. This means that returns filed for the 2022 tax year, originally due in 2023, must be completed by April 15, 2026, to qualify for any refund. After that date, the funds are forfeited permanently.
IRS spokesperson Yviand Serbones emphasized that once the deadline passes, taxpayers lose their legal right to claim their refund, even if they were fully eligible. The rule applies uniformly, with no extensions granted for late claims tied to that tax year.
For many individuals, this deadline may come as a surprise. Filing taxes is often associated with paying money owed, but in many cases, taxpayers are entitled to refunds due to over-withholding or eligibility for credits. Failing to file essentially means leaving that money behind.
The IRS also notes that individuals who do not file may miss additional financial benefits tied to their tax return. These include programs designed to support lower- and middle-income households, which can significantly increase the total refund amount.
Tax Credits and Simple Filing Steps Could Make a Difference
Unfiled returns may include eligibility for several key tax credits. These include the Earned Income Tax Credit, the Child Tax Credit, credits for dependent care, and certain education-related benefits. According to the report, these programs can reduce tax liability and, in many cases, result in larger refunds.
Filing a prior-year return is still possible, though it requires some specific steps. Taxpayers must gather relevant documents such as W-2 or 1099 forms, along with identification details like a Social Security number or ITIN. The correct version of Form 1040 for the 2022 tax year must be used, as current forms are not applicable.
The IRS requires that these older returns be submitted by mail rather than electronically. According to the guidance cited in the report, using certified mail is recommended to ensure proof of submission before the April 15 deadline.
For those who no longer have their documents, options remain available. Taxpayers can request copies from employers or access IRS transcripts through official online tools. While the process may take some effort, it remains accessible and could result in a meaningful financial return.
With inflation and rising living costs continuing to affect households, these refunds may provide timely relief. The opportunity, though, is strictly time-bound, and once the deadline passes, the funds are no longer recoverable under any circumstances.
