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Millions Can Still Claim Tax Refunds
11 May
Summary
- Court rulings allow refunds for pandemic-era penalties and interest.
- IRS shouldn't have assessed penalties from Jan. 2020 to July 2023.
- Taxpayers have until July 10, 2026, to claim refunds.
Recent federal court decisions have opened the door for millions of Americans to claim refunds for pandemic-era tax penalties and interest. These rulings, including one in the case of Kwong v. United States, determined that the IRS should not have levied certain penalties and interest from January 20, 2020, through July 10, 2023.
This period encompasses the COVID-19 federal disaster declaration and an additional 60 days. The court's interpretation focused on tax code provisions for disaster-related deadline postponements. Taxpayers who filed and paid their taxes by the original due dates have a three-year window from that deadline to request refunds, pushing the final claim date to July 10, 2026.
It is important to note that the government may still appeal these court decisions, meaning the situation is not yet finalized. Affected individuals should be aware of the potential for claiming these refunds before the upcoming deadline.
