Who is affected by this?
Taxpayers who were assessed penalties and interest by the IRS during the COVID disaster declaration period (Jan. 20, 2020 – May 11, 2023) for failing to file timely returns, pay taxes, or make estimated tax payments.
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Personal Finance / Tax Planning
Taxpayer Advocate Warns of July 2026 Deadline for COVID-Era IRS Refunds
Millions of American taxpayers may be entitled to refunds or reduced penalties and interest due to the postponement of filing deadlines during the COVID-19 emergency declaration. The IRS's taxpayer advocate is urging affected individuals to...
Key Insights
- Tens of millions of taxpayers may be owed refunds or lower abatement due to a recent court ruling.
- The refunds or abatements apply to penalties and interest assessed by the IRS during the COVID disaster declaration period (Jan. 20, 2020, through May 11, 2023).
- Taxpayers must file claims by July 10, 2026, to receive these refunds.
- The IRS requires claims under Form 843 to be filed through paper submissions sent by certified mail.
- The Taxpayer Advocate recommends the IRS publicize the issue, provide a six-month filing extension, consider systemic relief, and create an electronic submission portal.
In-Depth Analysis
A recent court decision, including a ruling in the Kwong case, clarified that the tax code's handling of federal disaster declarations meant that filing and payment deadlines were postponed throughout the period from January 20, 2020, through May 11, 2023. This postponement could result in refunds for penalties assessed for failure to file timely returns, failure to pay taxes, or failure to make estimated tax payments; interest that began accruing earlier than it should have; and overpayment interest for the 2020-2023 disaster period.
However, the relief isn't automatic. Taxpayers must submit claims using Form 843 via paper submission, preferably by certified mail to ensure proof of timely submission. The taxpayer advocate warns that without action from the IRS or Congress, taxpayers face a fast-approaching deadline to file their claims. It is important to act now to determine if you are eligible for a refund.
FAQ
What is the deadline to file a claim?
July 10, 2026.
How do I file a claim?
Claims must be filed using Form 843 through paper submissions, preferably sent by certified mail.
Takeaways
- If you were penalized or charged interest by the IRS during the COVID disaster declaration, you may be eligible for a refund.
- The deadline to file a claim is July 10, 2026.
- File Form 843 via paper submission and send it by certified mail to ensure proof of timely submission.
- Stay informed about any updates from the IRS or Congress regarding potential systemic relief.
Discussion
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