- Taxpayers may claim refunds for certain IRS penalties and interest, but they face a July 10, 2026 deadline.
- The temporary filing process applies to claims tied to Kwong v. United States and Section 7508A deadline relief.
- Eligible filers must use Form 843 and show the charge came from a postponed filing or payment deadline.
Taxpayers who paid certain IRS penalties or interest during the COVID emergency may still preserve refund claims, but many face a July 10, 2026 deadline. The claims target charges tied to delayed filing and payment, not a new payment program.
The IRS created an electronic filing option for some taxpayers with an IRS Online Account. The agency said it would process those submissions only if the government ultimately loses its appeal in the related court dispute.
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The potential claimants include individuals, small businesses, corporations, estates, and trusts. They must have paid late-filing penalties, late-payment penalties, or related interest charges during the covered period.
The issue centers on Kwong v. United States. Taxpayers in that case argue that the federal pandemic postponement under Section 7508A extended certain deadlines from January 20, 2020, through July 10, 2023.
That argument could open a path to recover charges collected during that period. The opportunity remains limited.
National Taxpayer Advocate Erin Collins described the possible reach of the claims in a statement.
“any taxpayer, including individuals, small businesses, large corporations, estates, and trusts, could still be eligible for a refund or abatement.”
Taxpayers must connect the charge to a postponed deadline
The potential refunds generally concern penalties and interest paid between January 20, 2020, and July 10, 2023. The type of charge matters.
| Potentially covered charge | What the claim must show |
|---|---|
| Late-filing penalty | The charge arose from a delayed filing during the covered period |
| Late-payment penalty | The charge followed a postponed payment deadline |
| Underpayment interest | The interest relates to the covered pandemic deadline rules |
| Other tax penalties | Eligibility is not established merely because the charge fell within the dates |
The materials describe the relief as applying to deadline-related penalties and interest, rather than every IRS penalty. Charges tied to unrelated tax issues may not qualify.
A taxpayer who paid a qualifying amount generally uses Form 843 to request a refund or abatement. The filing must identify the claim as related to the court case when using the IRS’s temporary process.
The IRS opened that electronic option on July 2, 2026. Taxpayers needed an IRS online account to submit the form electronically through that channel.
The refund opportunity is separate from pandemic stimulus payments
The possible refunds do not represent a new stimulus check or an across-the-board IRS payment. They concern specific penalties and interest that taxpayers already paid.
The IRS’s Economic Impact Payments program has already ended. The agency’s former “Get My Payment” tool is no longer active, while its page treats the program as historical and records that the first, second, and third payments were issued.
The distinction separates two pandemic-era tax issues that are often discussed together. One involved direct economic payments. The other involves attempts to recover deadline-related charges from tax accounts.
A separate tax-court ruling shaped the temporary process
A federal tax court judge issued the ruling described in Bowen v. Commissioner. Together with the IRS’s temporary pandemic-relief refund process, that decision created a limited opportunity to seek recovery of certain COVID-era penalties and interest.
The court-related claims remain tied to the government’s appeal. The electronic submission process preserves a claim for consideration, rather than ordering the IRS to issue money immediately.
President Donald Trump nominated Jim Gadwood as IRS chief counsel on June 23, 2026. Gadwood is a tax controversy partner at Miller & Chevalier.
Refund claims also face statutory timing rules. Requests generally must arrive within three years of the relevant return or two years after the payment, whichever period ends later.
Claims submitted after the applicable deadline generally risk becoming time-barred. Taxpayers reviewing a possible claim would need to compare the penalty or interest payment, the return date, and the postponed deadline period.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
