Overview
- The IRS on Wednesday confirmed taxpayers have until July 10, 2026 to mail a paper 'protective' refund claim on Form 843 to preserve possible refunds or reductions for penalties and interest charged during the pandemic.
- The opportunity follows the Court of Federal Claims decision in Kwong v. United States, which said returns or payments originally due during the federal disaster period were not legally late until after the tolled dates.
- Claimants should write a clear note such as 'Protective Refund Claim Pursuant to Kwong Case' on Form 843 and cannot file these claims electronically; the National Taxpayer Advocate advised this exact wording to help preserve rights.
- Taxpayers must check IRS tax transcripts year by year to identify penalties or interest assessed in the pandemic window because eligible amounts cover late‑filing, late‑payment and estimated tax penalties and certain interest charges, not stimulus payments.
- The Department of Justice has signaled it will appeal the Kwong ruling, so the IRS will likely hold most protective claims in suspense and final outcomes could take years to resolve.