IRS reminder: Time to claim $1 billion in tax refunds from 2020 expires on May 17

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There is $1 billion in unclaimed 2020 tax refunds up for grabs — but the last chance to file returns and collect the money is approaching. Nearly 940,000 taxpayers have until May 17 to file 2020 returns and claim their refund, the IRS said in a "final reminder" this week. The median possible payment is $932, according to the agency. The deadline is "terribly important" because there's a three-year refund expiration after each tax deadline, said certified public accountant John Karls, partner at accounting firm Armanino. More from Personal Finance: Just 4% of current retirees say they are 'living the dream,' survey finds This is the best time for a Roth individual retirement account conversion Interest rates on federal student loans may increase by 1 percentage point The 2020 tax deadline was postponed to May 17, 2021, amid the pandemic — and the three-year deadline to file 2020 returns and collect refunds is now one week away. "If you let if you let it slip, there's nothing anybody can do," said Bill Smith, national director of tax technical services at financial services firm CBIZ MHM. "You won't get your refund when the statute of limitations has run out."