Overview
- A federal judge in November 2025 ruled that tax filing and payment deadlines were suspended during the COVID federal disaster period, a finding that created a legal basis for refunds of penalties and interest for the period the judge identified.
- The IRS launched an electronic filing option on July 1, 2026 that accepts Form 843 submissions only for claims tied to fully paid COVID‑era penalties and interest that cite Kwong v. United States.
- Taxpayers must file protective claims by July 10, 2026 to preserve the right to seek refunds, and filing does not guarantee payment because the Treasury and IRS are appealing the Kwong ruling.
- Government records and reporting show the issue could affect tens of millions of taxpayers since the IRS assessed more than 120 million penalties during the pandemic timeframe, and eligible claimants include individuals, businesses, estates and trusts.
- The National Taxpayer Advocate and tax professionals advise filing now, marking claims as protective, citing Kwong, listing affected tax periods and attaching documentation, because missing the deadline likely forfeits any later recovery even if the ruling is upheld.