In the United States, every year, millions of dollars go unclaimed by the Internal Revenue Service (IRS), and a large part of that money belongs to citizens of the United States who, through ignorance or carelessness, never claim it. In the case of Arizona, the phenomenon has grown in recent years, leaving figures that draw attention and that could benefit thousands of families if they took a few minutes to investigate whether they are entitled to receive a back payment.
Much of this money comes from state and federal tax refunds, but it can also include forgotten bank accounts, checks never collected or payments for services that were never used. Although the money is legitimate and still registered in the name of its owners, nobody claims it. The state has the obligation to keep it in safe keeping until the owner turns up, but that only happens if the person finds out in time and follows the process to recover it.
The most worrying thing is that some tax refunds have deadlines. If they are not claimed within the established period, they can pass into the hands of the State or, in the case of federal refunds, be lost forever. For this reason, it is urgent to pay attention to this issue, especially now that record figures have been released about unclaimed money in Arizona.
Arizona has millions of dollars in unclaimed tax refunds
During the last tax year, the Arizona Department of Revenue (ADOR) returned more than 88 million dollars in unclaimed property. This includes tax refunds that, for various reasons, did not reach the citizens. It is a historic figure for the state, far exceeding the annual average for the last five years, estimated at around 57 million dollars. And the most striking thing is that there is still a lot left to distribute.
The law provides you a three-year window to claim an #IRS tax refund. This is your reminder that for 2021 tax returns, the deadline is April 15, 2025: https://t.co/ddNOlDdMTu pic.twitter.com/0YmtCga9Sd
— IRSnews (@IRSnews) April 9, 2025
An internal audit by ADOR itself discovered that there is an additional at least 17 million dollars in tax overpayments pending refund. This money corresponds to some 46,000 people who made payments in excess of the amount due when filing their tax returns, but never got the difference. Part of the problem is technical: due to a computer system failure, these funds are not reflected on the unclaimed property search portal. Therefore, taxpayers are not even aware that they are entitled to receive this money.
In view of this situation, the department has created a special task force to correct the error and make it easier for citizens to recover their money. Although a specific date for the final solution has not yet been announced, short- and long-term options to speed up the process are already being evaluated. In the meantime, Arizona residents can continue to use the usual platforms to check if they have funds in their name, such as the state’s unclaimed property portal or the national search service.
What you can do if you think you have money pending
The main recommendation for Arizonans is to carry out frequent searches, especially if they have changed address, have worked for several companies or have had bank accounts closed in recent years. The process for claiming these funds is usually simple: just enter the name and confirm if there is a match. If so, you must present identification and some document proving the connection with the address or the money claimed.
It is worth remembering that federal tax refunds have a time limit of three years to be claimed. If it is not done within that period, the money goes back to the Treasury and the right to recover it is lost. On the other hand, in the case of unclaimed state property, the money remains in custody until its owner requests it, with no expiry date.
Furthermore, the issue has gained relevance due to a recent legal dispute between the state of Arizona and the IRS, due to the latter’s attempt to tax a special state refund called the “Arizona Families Tax Rebate”. The lawsuit was filed by the state’s attorney general and is ongoing, but it reflects the importance of having clarity about refunds and how they can affect you at the tax level. While this conflict is being resolved, it is best to keep track of every dollar that may be in your name and not miss the opportunity to claim what is yours.
