Time is running out to file 2014 tax returns worth $1 billion in refunds

The Internal Revenue Service is reminding an estimated 1 million taxpayers that time is running out to file a 2014 tax return and claim refunds totaling more than $1 billion. To claim any refund due, taxpayers must file their 2014 federal tax return by April 17, 2018.

There is no penalty for filing a late return for those receiving refunds. The law provides most taxpayers with a limited window of opportunity for claiming a tax refund. If they do not file a tax return within three years to claim a refund, the money becomes the property of the U.S. Treasury.

The IRS estimates the median potential refund for 2014 is $847. By failing to file a tax return, people stand to lose more than just their refund. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2014, the credit was worth as much as $6,143.

The IRS reminds taxpayers seeking a 2014 tax refund that it may be held if they have not filed tax returns for 2015 and 2016. In addition, any refund will be applied to amounts owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

Taxpayers who are unable to get Forms W-2, 1098, 1099 or 5498 for 2014, 2015 or 2016 from their employer or other payer should act now to order a wage and income transcript using the Get Transcript Online tool at IRS.gov.

IRS transcripts are often used to validate past income to help with tax preparation. Taxpayers can also use Get Transcript by Mail or call the IRS automated phone transcript service at 800-908-9946 to order a tax return or tax account transcript be sent by mail. Transcripts arrive in five to 10 calendar days at the address the IRS has on file for the requester. The “Get Transcript by Mail” application is available in Spanish through Ordenar Transcripción.

Because software is no longer available for tax year 2014, prior year tax forms (such as 2014 Form 1040, 1040A and 1040EZ) and instructions are available to be printed from the Prior Year Forms and Instructions page on IRS.gov or ordered by calling 800-TAX-FORM (800-829-3676). The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the tax filing deadline, which this year is Tuesday, April 17.

See IRS: Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns for state-by-state estimates of the number of taxpayers who may be due 2014 income tax refunds, the median and total potential refund amounts.