Millions of taxpayers across the United States could still qualify for a potential IRS COVID tax refund, but they may have only a short time left to protect their claim. The key deadline is July 10, 2026, and eligible taxpayers who miss it could lose the opportunity to request a refund related to penalties and interest assessed during the COVID-19 federal disaster period.
The potential refunds stem from the court case Kwong v. United States, which found that some penalties and interest may have been improperly charged while federal COVID-19 disaster relief was in effect. The issue could affect millions of individuals, businesses, estates, and trusts that paid penalties or interest during that period.
Who may qualify for the IRS COVID tax refund?
Taxpayers who paid certain late-filing penalties, late-payment penalties, or related interest during the federal COVID-19 disaster period may be eligible to seek a refund. The relief is tied to taxes affected between January 20, 2020, and July 10, 2023, depending on each taxpayer’s circumstances.
To preserve their claim, most eligible taxpayers must submit Form 843, Claim for Refund and Request for Abatement, on or before July 10, 2026. The National Taxpayer Advocate recently announced that certain taxpayers with an IRS Online Account may also be able to submit Form 843 electronically for qualifying claims.
How to claim the refund?
Taxpayers should review their IRS account records to determine whether they were charged qualifying penalties or interest during the COVID-19 disaster period. Those who believe they may qualify should complete Form 843 and submit it before the July 10 deadline to preserve their eligibility for a potential refund.