Taxpayers may be eligible for refunds or penalty waivers due to extended filing deadlines during the COVID-19 emergency, following a recent court ruling. A July 10, 2026 deadline applies for filing claims.
The IRS 's taxpayer advocate has issued a critical notice alerting tens of millions of American taxpayers to a potential opportunity for refunds or reductions in penalties and interest.
This stems from the extended filing deadline postponements enacted during the COVID-19 national emergency. The National Taxpayer Advocate detailed in a recent post that a significant number of individuals may be eligible for relief concerning penalties and interest levied by the IRS throughout the 3.5-year period of the COVID-19 disaster declaration, spanning from January 20, 2020, to May 11, 2023.
The foundation for this potential relief lies in recent court rulings, most notably the decision in the case known as *Kwong*. This ruling clarified that the tax code’s provisions regarding federal disaster declarations effectively postponed filing and payment deadlines for the entire duration of the declared emergency. The advocate emphasized that while the Justice Department may choose to appeal this decision, the benefits conferred by the *Kwong* ruling are not automatically applied.
Affected taxpayers are required to proactively file claims to receive their due refunds or abatements. A firm deadline of July 10, 2026, has been set for these claims. The advocate explained that the unprecedented length of the disaster declaration – a period far exceeding typical disaster-related extensions – led to widespread unawareness among both taxpayers and tax professionals.
Many did not anticipate that filing and payment deadlines would be extended for such a prolonged duration, and consequently, did not realize that returns filed and payments made during this period might not be considered late, thus avoiding penalties and interest. Without intervention from the IRS or Congress, taxpayers will need to navigate the claims process individually.
The advocate stressed the importance of widespread awareness, aiming to prevent a situation where informed taxpayers receive refunds while those unaware miss out on their entitlements. The potential refunds or abatements cover amounts assessed during the COVID-19 period. The notice specifically highlights the procedural requirements for filing these claims. The IRS mandates that claims be submitted using Form 843, and crucially, these claims must be sent via paper mail.
Recognizing that paper submissions do not offer immediate confirmation of receipt, the advocate strongly advises taxpayers to utilize certified mail to maintain proof of timely submission in case of loss. Furthermore, the advocate has put forth a series of recommendations to the IRS, urging them to prioritize taxpayer rights and streamline the process.
These recommendations include a comprehensive public awareness campaign, a six-month extension of the filing deadline for refund claims, consideration of systemic relief to eliminate the need for individual filings, and the establishment of an electronic submission portal for Form 843. The advocate also called upon tax professionals to proactively inform their clients about this potential relief, encouraged members of Congress to communicate the information to their constituents, and appealed to the media to disseminate the information to the broader public.
This widespread communication is deemed essential to ensure equitable access to potential refunds and to avoid a situation where a lack of awareness results in financial loss for eligible taxpayers. The advocate’s overarching goal is to maximize the number of taxpayers who benefit from this ruling and to prevent disparities based on access to information
IRS Tax Refunds COVID-19 Tax Penalties Tax Deadline Taxpayer Advocate Kwong Case Form 843
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