Filing Past Due Tax Returns Before the Refund Statute Date Expires

File a Claim for Credit or Refund

If you are owed a refund, you must act quickly. The IRS limits the time you have to claim a credit or refund. If you miss the deadline, you could permanently lose your refund.

What is the Refund Statute Expiration Date?

The Refund Statute Expiration Date (RSED) is the last day you can file a claim for credit or refund for a specific tax year.

Generally, you must file your claim:

• Within three years from the date you filed your original tax return (including extensions); or
• Within two years from the date you paid the tax, whichever is later.

If you do not file within the timeframe, your claim for refund will be denied.

NOTE: A properly filed original or amended income tax return can serve as a claim for credit or refund.

While your claim must be filed by the RSED, the amount of credit or refund you can receive is limited to the tax paid (including penalties and interest) during the three-year period prior to filing your claim, (plus any extension of time to file). If you do not file your claim within the three-year period, the amount is limited to the portion paid within the two year period immediately preceding your claim.

When are payments considered as paid?

Understanding when payments are considered “paid” is crucial for determining your refund eligibility:

• Payments with a timely filed return are considered paid on the due date of the original return (not including extensions).
• Withholding and estimated tax payments are also treated as paid on the due date of the original return (not including extensions).
• Later payments are considered paid on the actual payment date.
• Credits applied from another tax year are treated as paid on the date the credit is allowed.

Exceptions to the general RSED timeframes include:

• Bad debts;
• Worthless securities;
• Net operating loss carrybacks;
• Declared disasters; or
• Financial Disability.

For more information on exceptions and periods of financial disability, see Pub. 556, Examination of Returns, Appeal Rights, and Claims for Refund.

Filing past due tax returns

You may be eligible for a refund if you:

• Had federal income tax withholding from wages or other income;
• Made estimated tax payments; or
• Qualify for refundable credits such as:
  • Earned Income Tax Credit (EITC);
  • Additional Child Tax Credit (ACTC); or
  • Premium Tax Credit (PTC).

Filing past due federal tax returns is important for reasons other than just the potential for losing out on a credit or refund. These include:

• Protecting Social Security benefits;
• Avoiding issues when obtaining loans; and
• Preventing the IRS from filing a tax return for you.

So, be aware of the consequences for not filing a tax return when you are required to do so.
If you need resources to help you file a tax return, see:

• TAS Tax Tip: Federal tax filing information and tips to help you avoid common errors
• Get Help Filing Returns
• IRS Filing Information
• Filing past due federal tax returns

Did you receive a CP 81 Notice?

A CP 81, Unfiled Tax Return – Credit About to Expire, We May Have A Refund for You, is sent when the IRS received payments or credits for the tax return shown on your notice, but IRS has not received a tax return for that year. The RSED is about to expire and if your return is not filed you could loose out on the refund, if you are owed one. It is important to follow the steps on the notice.

If you need return preparation assistance with a prior year tax return and the IRS has already contacted you about that return, you may be available for assistance from a Low Income Taxpayer Clinic.

What happens if you file your return after the RSED?

If you file your return after the RSED:

• The IRS will not issue your refund;
• Any overpayment is forfeited by law;
• You cannot apply the refund to another tax year.

What if the IRS denies your refund claim?

If the IRS disallows your claim (in full or in part), the IRS will send a claim disallowance (such as a Letter 105C or 106C). The disallowance notice gives you two years from the date of the notice to file a lawsuit in U.S. District Court or the U.S. Court of Federal Claims. During the two-year period you can request reconsideration U.S Court of Federal Claims. During the two-year period you can request reconsideration and file an appeal but the two-year period is not extended while the IRS is considering your claim. The refund must be paid, the statute extended, or a suit filed before the two-year time period expires or you are ineligible for a refund even if the IRS determines you qualify.

Take action now to protect your refund:

• File any past due returns as soon as possible;
• Track your RSED, the IRS does not generally notify you before it expires; or
• Get help if needed from a tax professional or TAS.

For more updates from the Taxpayer Advocate Service, read the latest tax tips, NTA blogs, Get Help topics and more.

• Time you can claim a credit or refund
• Refund Statute Expiration Date (RSED) 
• Notice of Claim Disallowance