IRS Kept $4.75 Billion in Overpayments That Taxpayers Can No Longer Claim Back

AP

The IRS has kept $4.75 billion in overpayments from taxpayers who can no longer legally claim them back, according to an audit from the Treasury Inspector General for Tax Administration.

When a taxpayer sends a payment to the IRS, and the IRS is unable to determine which taxpayer’s account the payment is for, the money is applied to the unidentified remittance file.