Nearly $1B in IRS refunds about to be forfeited

An IRS legal deadline looms in April to claim more than $950 million in 2012 federal tax refunds.

An estimated 1 million-plus taxpayers risk losing their share of the funds because they haven't yet filed the tax returns originally due nearly three years ago, the IRS said Thursday.

"The clock is ticking for taxpayers who didn't file a 2012 federal income tax return, leaving nearly $1 billing in refunds unclaimed," said IRS Commissioner John Koskinen. "We especially encourage students and others who didn't earn much money to look into this situation because they may still be entitled to a refund."

Federal law gives most taxpayers a three-year window to claim an IRS refund. If no return is filed within that time, the money goes into the  the U.S. Treasury. For 2012 tax returns, the window closes at the end of this year's April 18 federal tax filing date — or a day later for taxpayers in Maine and Massachusetts.

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