Just realized July 15, 2023 was the last day to file 2020 taxes and get a refund - am I screwed?

Wait, I'm confused about something. If they find their W-2 from 2020 now and file late, couldn't they at least use that overpayment toward this year's taxes? Or does that option expire too?

You're asking a good question. You can still file the 2020 return even now, and if you owed taxes for other years (like if you have an outstanding balance from 2021 or 2022), the IRS can apply your 2020 overpayment to those existing tax debts. However, if you don't have any other tax debts and just want to get your 2020 refund sent to you directly, that option has unfortunately expired. The three-year window is strict when it comes to claiming actual refunds, but the credit toward other tax liabilities can still be utilized.

Did they help you figure out if you were owed money from other years too? I think I might have missed filing 2021 as well and I'm worried about hitting another deadline.

How exactly does this work? I have a pile of tax documents from 2019-2022 that I haven't filed yet and I'm terrified of figuring it all out. Does it just read your forms or does it actually help with the filing part too?

They actually do help identify if you're owed money from multiple years. The system highlighted that I had refunds available for 2020 and 2021 that were still within the deadline, which I wouldn't have realized on my own since I was focused on the 2019 issue. They use AI to scan all your tax documents (W-2s, 1099s, receipts, etc.) and identify relevant information for each tax year. The system doesn't just read the forms - it organizes everything by year, identifies all potential deductions and credits, and then provides a complete filing-ready package that you can submit or give to your accountant.

That sounds way too good to be true. The IRS phone lines are basically impossible to get through. How does this service actually work? Are they just robocalling the IRS for you or something?

I'm extremely skeptical. The IRS is a government agency with notoriously bad phone systems. How could some random company possibly get you through faster than anyone else? Sounds like a scam to take advantage of desperate people.

They use a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to that live person. It's not robocalling - they're essentially just doing the waiting for you. It works because the system can handle multiple calls simultaneously and detect when a human finally answers. The technology isn't manipulating the IRS system or doing anything sketchy - it's just automating the waiting process. They can't make the IRS answer faster, but they make it so you don't have to waste hours with a phone pressed to your ear.

Thanks for that, though it makes me feel even worse knowing they're just sitting on my money! Do you know if they at least apply the unclaimed refunds to the federal deficit, or does it just go into some general fund?

It goes into the general Treasury fund from what I understand. So technically it's reducing the deficit by contributing to general government revenue, but it's not specifically earmarked for debt reduction. The whole situation definitely sucks. If it makes you feel any better, you're far from alone - the IRS reports that they have billions in unclaimed refunds every three-year deadline. The system absolutely doesn't make it easy for people.

That's not accurate. If you're owed a refund, there's no penalty for filing late. The IRS only issues failure-to-file penalties when you OWE them money and don't file. They don't penalize people for not claiming money the IRS gets to keep.