Tens of millions of Americans may not know that they could be owed a refund from the IRS for penalties or interest charged during the COVID-19 pandemic. The National Taxpayer Advocate (NTA) is urging taxpayers to act fast, as the deadline to claim these refunds is July 10, 2026. Here’s everything you need to know to ensure you don’t miss out.
What Is the Deadline to Claim Your IRS Refund?
The Kwong v. United States court ruling has clarified that the COVID-19 public health emergency, which lasted from January 2020 to May 2023, qualifies under tax rule Section 7508A(d). This rule allows tax deadlines to be postponed during federally declared disasters.
The ruling means taxpayers who were penalized for filing late or paying taxes during this period could be eligible for refunds on those penalties and any interest that was charged. However, the deadline to claim these potential refunds is July 10, 2026. If you want to preserve your right to claim, you must file before then.
Who Is Affected by This Refund?
The ruling could impact a broad range of taxpayers, including: Individuals who were penalized for late tax filings, unpaid taxes, or missed estimated tax payments between 2020 and 2023. Small businesses, large corporations, and trusts that faced similar penalties. Taxpayers who were charged penalties for late international information returns, which can carry hefty fines, even if no taxes are due.
In short, if you faced penalties or interest charges during the COVID disaster period, there’s a good chance you might be eligible for a refund.
How to Know If You’re Owed Money
To check if you’re eligible for a refund, you need to review your IRS tax transcript. The transcript shows key information about your tax filings, including penalties, interest, and payments. You can access it online via the IRS website by creating an Individual Online Account or by requesting a copy to be mailed to you.
If you see that penalties or interest were charged on your taxes during the period from January 2020 to May 2023, then you may be entitled to a refund. If you’re unsure how to interpret the transcript, or if you need help, it’s a good idea to consult a tax professional.
How to File a Claim
To claim your refund, you’ll need to file IRS Form 843 (Claim for Refund and Request for Abatement). The form must specify that your claim is based on the Kwong v. United States decision and the COVID-19 disaster period.
Currently, the IRS is only accepting paper claims, so you will need to send the form through certified mail to ensure it’s received and processed on time.
Why the July 10, 2026, Deadline Matters
The deadline of July 10, 2026, is critical. If you don’t file by that date, you will lose your right to claim any potential refunds. While the IRS disagrees with the ruling and may appeal the decision, it’s important to file your claim now to protect your eligibility.
