IRS July 10 Refund Deadline: Millions may qualify for COVID-era relief, what you need to know
WASHINGTON - Tens of millions of taxpayers may qualify for refunds or penalty and interest abatements tied to Internal Revenue Service assessments made during the COVID‑19 federal disaster period, according to the Taxpayer Advocate Service. But taxpayers must act quickly, because this relief is not automatic. Refund claims generally must be filed by July 10, 2026.
The backstory:
Recent court rulings, most notably Kwong v. United States, found that a tax code provision governing disaster‑related filing and payment extensions automatically postponed deadlines for as long as the COVID‑19 federal disaster declaration remained in effect, plus 60 days.
That means filing and payment deadlines tied to the COVID‑19 federal disaster were automatically extended from Jan. 20, 2020, through May 11, 2023, plus an additional 60 days, to July 10, 2023.
Under the Kwong ruling’s interpretation, any return or payment due within that entire window was not considered late until after July 10, 2023, meaning the IRS should not have assessed late‑filing penalties, late‑payment penalties or interest during that entire period.
The government argued for a much narrower reading of the postponement statute and rejected the idea that filing and payment obligations were suspended for the full 3.5‑year disaster period. The Department of Justice is expected to appeal the ruling.
RELATED: IRS COVID tax refund deadline is approaching: What to know
Why you should care:
Under the Kwong ruling’s reasoning, taxpayers may be entitled to refunds or abatements for amounts the IRS assessed during the COVID‑19 disaster period, including:
- Penalties for failure to file, failure to pay or failure to make estimated tax payments.
- Interest that began accruing earlier than it should have or should not have accrued at all.
- Overpayment interest tied to the 2020–2023 disaster period.
A broad range of taxpayers could be affected. Tens of millions were assessed penalties or interest for late filings or payments during the COVID‑19 disaster period, and if Kwong holds, they may be entitled to refunds or abatements.
You may be affected if you:
- Filed late returns between Jan. 20, 2020, and July 10, 2023.
- Paid late‑filing or late‑payment penalties during that period.
- Owe IRS penalties from those years, even if unpaid.
- Filed international information returns late, which can trigger steep penalties even when no tax is due.
What you can do:
Most taxpayers will need to file a refund or abatement claim because the IRS generally does not issue this relief automatically. Claims typically must be filed within the standard three‑year or two‑year windows, but for most people the key deadline is July 10, 2026, using Form 843.
Filing Form 843 for claims citing Kwong v. United States (IRS)
Certain individual taxpayers who have an IRS Online Account* may submit their Form 843, Claim for Refund and Request for Abatement, electronically through a new secure application available on IRS.gov located on the Mobile-friendly forms web page. At this time, only claims on Form 843 related to fully paid interest and penalties that cite to Kwong v. United States are being accepted electronically.
Business taxpayers, as well as individual taxpayers who choose not to use the electronic submission option, who want to file a claim related to fully paid interest and penalties that cites to Kwong v. United States may complete the current paper version of Form 843 PDF and mail the form to:
Internal Revenue Service
1973 N Rulon White Blvd.
Ogden, UT 84201
Please identify your submission as being related to Kwong v. United States by writing "Kwong vs. United States" across the top when completing the Form 843.
For Form 843 submissions not related to Kwong v. United States, taxpayers should look to the Form instructions for mailing addresses specific to their reason for filing.
*Individual taxpayers without an existing IRS Online Account can create one by visiting the Your account web page.
The Source: Information in this article comes from the Internal Revenue Service and Taxpayer Advocate Service.