The Internal Revenue Service (IRS) announced on March 20, 2026, that more than 1.3 million people nationwide have unclaimed refunds corresponding to fiscal year 2022 and face a deadline April 15 to file their tax returns. The accumulated amount exceeds one billion dollars in funds that, if not claimed, will permanently revert to the United States Treasury.
The agency estimates that the median refund amount is $686. This means that half of the refunds exceed that amount. This estimate does not include additional tax credits that may apply to each taxpayer’s case. This is money withheld during the 2022 tax year that was never claimed because taxpayers did not file their returns Form 1040 within the legal timeframe.
Why did so many taxpayers not file their tax returns?
The agency also published a state-by-state breakdown with estimates of the number of potentially eligible individuals and the total unclaimed amounts in each jurisdiction. Nationwide, it is estimated that approximately 1,322,600 individuals may be entitled to refunds, totaling approximately $1.159 billion.
The reasons that lead millions of people not to file their federal tax return are varied. In some cases, it involves low-income workers who assumed they weren’t required to file; in others, it involves those who believed they wouldn’t receive a refund. There are also those who simply weren’t aware of the three-year rule that allows for refund claims after the original filing deadline.
The Cases of California, New York and Texas
California and Texas top the list of states with the highest number of taxpayers who have not yet filed their 2022 tax returns. California has approximately 143,200 people with an estimated total of $124.7 million in pending refunds, while Texas has nearly 126,000 people and some $111.7 million. Florida comes in third place, with around 89,000 individuals and approximately $74.5 million in unclaimed returns.
New York accumulates close to $62 million, while Illinois and Pennsylvania hover around $43 million each. The numbers reflect a widespread distribution across the national territory, with a significant presence in both densely populated states and medium-sized jurisdictions.
What the IRS Law Says About the Three-Year Period
The legal framework governing this situation is clear. Under federal law, taxpayers have three years to file their tax return and claim any applicable refunds. If they fail to do so within that period, the money becomes the property of the United States Treasury government. There is no further recourse: once the window has closed, the agency is legally prevented from issuing that refund, regardless of the documentation the taxpayer may present.
Similar rules apply to other tax years: 2023 refunds can be claimed until April 15, 2027, and 2024 refunds until April 17, 2028. But 2022 is the immediate priority, especially for those who have not filed returns for three or more consecutive years and risk losing multiple accumulated refunds.
The IRS noted that “time is running out to claim $1.2 billion in refunds for the 2022 tax year,” and clarified that not filing a return means losing more than just the refund of taxes withheld during that year.
