The Internal Revenue Service (IRS) has reminded all taxpayers in the United States about the importance of knowing the legal deadlines to claim federal tax refunds and tax credits. Failing to meet these deadlines could result in permanently losing the right to that money.
The deadline to claim a refund or credit is known as the “Refund Statute Expiration Date” (RSED). Once this deadline passes, the IRS is no longer authorized to process the request, even if the taxpayer is entitled to the refund.
According to the IRS, the general rule is that taxpayers have the right to claim a credit or refund until:
- Three years after filing the federal income tax return, or
- Two years after paying the tax, whichever is later.
The agency clarifies that if the return was filed before the official due date, that date will be considered the starting point for counting the deadline.
Cases Where the Deadline Can Be Extended
There are special situations in which taxpayers may have more time to file a claim with the IRS:
- Having a written agreement with the IRS to extend the deadline.
- Being a victim of a presidentially declared natural disaster.
- Serving in a designated combat zone or a military contingency operation.
- Claiming a deduction for a bad debt or an investment that lost all its value. In these cases, the IRS allows up to seven years from the due date of the return.
For those filing an amended return (Form 1040-X), it must be sent to the IRS Service Center where the original return was filed.
Don’t Lose Your Money
This IRS reminder is especially relevant for thousands of taxpayers who may be leaving money on the table. Checking the status of your return and knowing the deadlines is key to ensuring you receive what you’re owed.
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