An Overview
A recent federal court decision, Kwong v. United States, has created a refund opportunity for certain taxpayers who paid IRS penalties and related interest tied to filing or payment deadlines during the COVID-19 disaster period. To preserve potential refund rights, affected taxpayers need to file protective refund claims by Friday, July 10, 2026.
What’s Happening
The IRS has indicated that certain taxpayers seeking a refund or abatement should file using Form 843, Claim for Refund and Request for Abatement. Claims should identify the penalties and interest at issue, the applicable tax periods, and the legal basis for the request, including that the claim depends on the final outcome of the Kwong litigation and related IRS guidance.
What’s Next?
Because the deadline is approaching quickly, taxpayers who paid COVID-era federal penalties or related interest should contact their tax advisor as soon as possible.
Aprio’s tax advisors can help you determine eligibility, prepare and submit accurate claims, and handle any lawsuits or IRS notices that may follow.