Particle.news
Download on the App Store

Taxpayer Advocate Urges Protective Filings After Covid-Era Ruling on IRS Penalties

Taxpayers are being urged to file paper protective claims to preserve potential refunds.

Overview

  • A federal claims court in Kwong v. United States said the disaster law paused federal tax filing and payment deadlines from January 20, 2020 through July 10, 2023.
  • The IRS disputes that interpretation and the Justice Department is expected to appeal, so any refunds remain uncertain.
  • The National Taxpayer Advocate says relief is not automatic and urges taxpayers to file protective refund claims by July 10, 2026, often by mailing Form 843 or an amended return.
  • Possible recoveries include failure-to-file, failure-to-pay and estimated tax penalties, plus interest charged during that period and overpayment interest the IRS did not pay.
  • Advocates warn tens of millions, including many Americans overseas, could miss refunds without broad notice, and a surge of paper claims could slow IRS processing.