IRS Updates July 11, 2023

Design by Paul Davis

Refunds Deadline Approaching

The IRS reminds those who haven’t filed their 2019 tax return that the window for claiming potential refunds is closing. The deadline for filing and claiming any refund for 2019 is July 17, 2023. The law allows 3 years to file and claim refunds (although that deadline was extended for 2019 due to COVID-19), and requires taxpayers to properly address, mail, and ensure the tax return is postmarked by July 17, 2023. Over 18,000 South Carolina residents are presumed to be among those who haven’t filed. Unclaimed refunds become the property of the US Treasury. Refund checks may also be held if tax returns for 2020 and 2021 have not been filed. Prior year tax forms are available online, and key documents must be obtained from employers or the IRS. 

Disaster Victims Given Notice

The IRS is sending a “special follow-up mailing” to taxpayers in several states to let them know that they have additional time to pay their taxes. An initial mailing of a CP14 notice told taxpayers who have a balance due that they needed to pay within 21 days. These taxpayers actually have until later this year to pay, under the disaster declaration and relief. These new mailings, CP14CL, aim to mitigate confusion caused by the earlier CP14 notice and to help reassure people. The IRS Commissioner Danny Werfel says, “this mailing reflects how we’re trying to be more taxpayer-focused given the additional resources that we’ve been given under the Inflation Reduction Act.”

New Scam Warning Issued

The IRS is warning taxpayers to be on the lookout for a new scam mailing intended to mislead people into believing they are owed a tax refund. This new scheme involves a cardboard mailer from a delivery service and an enclosed letter with wording that the notice is “in relation to your unclaimed refund.” Naturally the contact information and phone number on the document do not belong to the IRS, but the notice seeks sensitive personal information from taxpayers – including detailed photos of drivers’ licenses – that can be used by identity thieves. The requests are often as follows: 

“A Clear Phone of Your Driver’s License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting.”

And: 

“You’ll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The Information Please Try to Be Checking Your Email for Response From The Agents Thanks”

The IRS urges taxpayers to note the multitude of warning signs, including odd punctuation, a mixture of fonts, and inaccuracies. Other known scams can be reviewed on the IRS Dirty Dozen list.