Millions of taxpayers have until tonight, July 10, 2026, to file an IRS tax refund claim for COVID-era penalties and interest, after a federal court ruling extended the deadline for seeking relief. The deadline stems from a court decision in Kwong v. United States, which held that federal tax deadlines were automatically suspended from January 20, 2020, through July 10, 2023, during the pandemic disaster period.
Under the court’s reasoning, taxpayers who paid penalties or interest for late filing or payment during that window may be eligible to recover those amounts. The relief is not automatic—taxpayers must actively file a claim using IRS Form 843, Claim for Refund and Request for Abatement, by the deadline or forfeit their rights to a refund.
The three-year statute of limitations on refund claims, measured from the extended July 10, 2023 deadline, brings the filing deadline to July 10, 2026. Once that date passes, affected taxpayers will no longer be able to claim the relief, even if the Kwong decision is ultimately upheld on appeal. The National Taxpayer Advocate has warned that missing the deadline will result in permanent loss of eligibility.
To file, taxpayers can now submit Form 843 online through their IRS Online Account if they have one. The IRS announced on July 1, 2026, a new electronic filing option for Form 843 claims related to fully paid interest and penalties, available through the agency’s mobile-friendly forms page after logging in via ID.me. Alternatively, taxpayers can download and mail a paper version of the form to the IRS Service Center in Ogden, Utah, with a postmark by July 10.
The Kwong ruling applies to taxpayers who filed returns during the COVID-19 period and were assessed penalties or interest, or who paid penalties or interest for late filing or payment between January 20, 2020, and July 10, 2023. The decision may also affect some taxpayers who overpaid taxes for tax years 2019 through 2022 and missed refund opportunities, such as those with withholding, estimated tax payments, or refundable credits during that period.
When filing, taxpayers should identify their submission as related to Kwong v. United States by writing that case name across the top of the form. A protective claim can preserve refund rights while the law remains unsettled; the claim should identify the taxpayer, the tax years involved, the penalties, interest, or refund items at issue, and cite IRC § 7508A(d) and the Kwong case as the legal basis. Taxpayers should keep copies of all submissions and consider using certified mail or another method that provides proof of timely mailing.
The National Taxpayer Advocate estimates that tens of millions of taxpayers may be eligible for refunds under Kwong, but suspects only a small fraction will file timely claims. The agency has emphasized that unrepresented taxpayers, low-income taxpayers, and those without easy access to professional help or tax transcripts face the greatest risk of losing refunds. Taxpayers can review their IRS account transcripts to identify potential refund opportunities, focusing on whether the transcript shows penalties, interest, payments, refund activity, or other account changes from January 20, 2020, through July 10, 2023.
Sources
- Taxpayer Advocate Service (IRS.gov) — Official guidance on Kwong deadline, filing requirements, and online filing option launched July 1, 2026
- USA Today — Reporting on IRS making COVID refund claims easier with online filing ahead of July 10 deadline
- Time Magazine — Coverage of the July 10 deadline, eligibility criteria, and how to file Form 843
- CBS News — Confirmation that millions of taxpayers have until July 10 to claim IRS refunds
- H&R Block — Instructions on Form 843 submission via IRS Online Account or mail
