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IRS Refund Alert: Claim Penalties by July 10
3 Apr
Summary
- Taxpayers may get refunds for IRS penalties paid between January 2020 and July 2023.
- A filing deadline of July 10, 2026, is critical for claiming potential refunds.
- Eligible penalties include late payments, late filings, and estimated tax underpayments.
Taxpayers who paid penalties and fees to the Internal Revenue Service during the Covid pandemic may now be eligible for refunds. Recent court decisions have opened a potential avenue for recovering these costs for penalties incurred from January 10, 2020, to July 10, 2023. A crucial deadline of July 10, 2026, has been set for taxpayers to file their claims.
It is important for individuals to act by this date, even though the appeals process for the latest court ruling is expected to be lengthy. Taxpayers should be aware that the IRS might initially deny claims pending appellate review, but this denial does not necessarily conclude the refund process.
To determine eligibility, taxpayers can check their online IRS account for penalty payments during the specified period or consult a tax professional. Refunds could amount to hundreds or even thousands of dollars. Eligible penalties include those for underpayment of estimated taxes, late tax payments, late filings, and refunds processed beyond 45 days.
Penalties associated with installment agreements may also be eligible for recoupment. Taxpayers can use IRS Form 843 to request refunds for these penalties and interest, or they can engage a tax professional to handle the filing on their behalf.
