Taxpayers May Be Eligible for Significant Tax Refunds – If They Act by July 10

4 hours ago

Taxpayers may be entitled to refunds or abatements of penalties and interest assessed by the IRS during the COVID-19 disaster period from January 20, 2020 to July 10, 2023, but must file claims by July 10, 2026.
The Kwong v. United States court decision interprets tax code IRC § 7508A(d) to automatically postpone filing and payment deadlines during the disaster period, meaning penalties and interest should not have been assessed.
Refunds or abatements could apply to penalties for late filing or payment, interest that accrued incorrectly, and overpayment interest for 2020–2023, affecting tens of millions of taxpayers across income levels and entities.
Taxpayers should consider filing protective claims using Form 843 by July 10, 2026 to preserve rights while the legal issue is litigated, as the IRS requires paper submission and may not issue refunds automatically.
The IRS is urged to publicize the issue, extend filing deadlines, provide systemic relief, and create an electronic portal to ensure fair treatment and prevent disparate outcomes between informed and unaware taxpayers.

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