WASHINGTON – More than 1.1 million Americans are owed a share of over $1 billion in unclaimed refunds for the 2021 tax year. Thousands of taxpayers who owe the IRS are claiming these refunds to reduce their tax debts.

However, the deadline to claim the money is fast approaching. To receive their refunds, eligible taxpayers must file a 2021 tax return by April 15, 2025 – meaning this is their last chance before the money is collected by the Treasury.

As the deadline approaches, a surprising number of Americans are resolving their back taxes, using the 2021 refund to reduce their overall debt.

When taxpayers fill out our Tax Relief Survey, they are able to see if they qualify for the IRS Fresh Start Program and begin their journey toward tax resolution in minutes.

The IRS Fresh Start Program, which helps minimize or even eliminate tax debt, has received a record number of applications. Thanks to last year’s budget increase, the IRS has been able to approve more applications than ever before.

While these Americans owe back taxes from previous years, the fear of incurring additional debt is pushing them to finally resolve their tax problems before the deadline. Those who don't file 2024 tax returns by April 15, 2025, will face penalties of 5.5% of the unpaid taxes each month, plus interest charges that accrue daily.

"The financial impact of missing this deadline can be devastating for many families," says Los Angeles Tax Attorney Eric Levins. "We're seeing a last-minute surge in Fresh Start applications as people realize the gravity of their situation."

Take this 60-second Quiz to See if You Qualify for the IRS Fresh Start Program.

Tax debt affects thousands of Americans; however, few seek assistance to resolve their debts with the IRS. It’s not that the resources are unavailable, but that the IRS bureaucracy often gets too complicated for the average American to handle.

In truth, fighting the IRS is a full-time job, so Americans are turning to reputable tax relief firms to ensure that they receive the most relief possible.

"Many Americans assume they don't qualify without ever checking," Levins adds. "In reality, a broad range of circumstances can make someone eligible for significant relief."

Remember, it is 100% free to see if you qualify for the IRS Fresh Start Program, and a few minutes could help you save thousands.

Take the Next Step

Every day, your tax debt grows larger due to penalties and fees. It is vital to act now and partner with a tax relief expert to receive the best resolution possible.