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4d ago

Taxpayer Advocate Urges Protective Claims for Pandemic-Era IRS Penalties by July 10, 2026

A contested court ruling opened a path to refunds on penalties charged during the COVID disaster period.

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Taxpayers already filed nearly 78.9 federal income tax returns through March 20, according to IRS statistics. That is down slightly at 0.9% from the same time a year ago. The average federal income tax refund was $3,571 — up 10.9% or $350 on average — through March 20.
The Internal Revenue Service (IRS) Building in Washington, D.C., on February 20, 2025.
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Overview

  • Tax advisers and the National Taxpayer Advocate on Monday pressed taxpayers to mail Form 843 protective claims by July 10, 2026.
  • The push follows Kwong v. United States, a November ruling that said penalties and interest from Jan. 20, 2020 through July 10, 2023 were improper.
  • The Department of Justice is expected to appeal, which means refunds are not guaranteed.
  • Form 843 cannot be filed online, so taxpayers should check IRS account transcripts for charges in that window and send claims by certified mail.
  • IRS data show 14.2 million estimated‑tax and 18.6 million failure‑to‑pay penalties in fiscal 2023, pointing to many potential claims and sizable refunds for those who paid penalties.