Important IRS Refund Opportunity for Taxpayers

A federal court decision has created a potential refund opportunity for taxpayers who paid certain IRS penalties and related interest during the COVID-19 disaster period. 

The recent ruling in Kwong v. United States held that certain IRS filing and payment deadlines were suspended during the federally declared COVID-19 disaster period. As a result, some late-filing and late-payment penalties assessed between January 20, 2020, and July 10, 2023 may have been improperly charged. 

As a result, taxpayers who paid penalties and related interest during this period may be entitled to refunds.

Why July 10, 2026 Matters

Taxpayers generally have three years from the date a return is filed to claim a refund. Because the COVID disaster relief period effectively extended certain tax deadlines through July 10, 2023, many taxpayers have until July 10, 2026 to preserve their refund rights.

The IRS is not expected to issue these refunds automatically. Taxpayers who may be affected should consider filing a protective refund claim before the deadline.

Who May Be Eligible?

You may want to review your situation if you paid IRS penalties or interest related to:

• Late-filed tax returns

• Late tax payments

• Estimated tax penalties

• Interest charged on those penalties

What Action May Be Required?

Eligible taxpayers file IRS Form 843, Claim for Refund and Request for Abatement, to preserve their rights while the case continues through the courts.

Current guidance suggests:

• Filing a separate Form 843 for each affected tax period

• Marking the form "Protective Refund Claim Pursuant to Kwong Case"

• Mailing the claim to the appropriate IRS service center, preferably via certified mail with return receipt requested

Filing a protective claim now can help keep the tax year open and protect your ability to receive a refund if the ruling is ultimately upheld.

How Griffin & Furman Can Help

Determining whether a refund claim is worthwhile requires reviewing your IRS account history, the penalties assessed, and the applicable filing deadlines. Our team can help evaluate your eligibility, calculate potential refund amounts, and prepare any necessary filings before the July 10, 2026 deadline.

If you believe you may have paid IRS penalties or interest during the COVID-era disaster period, please contact our team to discuss your options.