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

However, the deadline to claim the money is fast approaching. Eligible taxpayers must file a 2021 tax return by April 15, 2025 – or forfeit these funds to 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 is receiving a significant uptick in Fresh Start Program applications, which helps minimize or even eliminate tax debt. 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 incur 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 Virginia-based CPA George Miller. "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," Miller 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.

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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.