Overview
- The IRS on July 1 added an electronic submission path for Form 843 that accepts only COVID-related claims for fully paid penalties and interest and requires an IRS Online Account with ID.me to use it.
- Taxpayers generally must file a protective claim by July 10, 2026 to preserve the right to seek refunds tied to the federal court ruling in Kwong v. United States, but filing does not guarantee payment because the government is appealing the decision.
- Tens of millions of people, businesses, estates and trusts who paid failure-to-file, failure-to-pay, estimated-tax penalties or related interest during the pandemic relief window may qualify for refunds or abatements if the ruling stands.
- Those who cannot use the online portal must mail Form 843 and should label it a protective claim citing Kwong; many taxpayers will need IRS account transcripts or help from a tax pro to identify eligible penalties and the correct tax periods.
- If courts ultimately uphold Kwong the financial impact could be large, but missing the July 10 filing deadline may permanently forfeit claims, posing the greatest risk to low- and moderate-income taxpayers who are less likely to have professional help.