global Tax Could You Be Owed a Tax Refund? A Recent Court Case May Create an Opportunity May 19, 2026 A recent court ruling (Kwong v. United States) may allow some taxpayers to recover penalties and interest assessed during the COVID-19 pandemic. Here's what you need to know before the July 10, 2026 filing deadline. Why this mattersTiming is important here. Taxpayers who wish to pursue a refund generally need to file a claim by July 10, 2026.The filing of a refund claim does not guarantee that the IRS will issue a refund. The IRS could disagree with the court's interpretation, appeals could continue, or additional guidance could be issued. However, filing a claim may preserve your rights while the issue continues to develop.Background: Kwong v. United StatesIn a case known as Kwong v. United States, the Court of Federal Claims ruled that certain tax deadlines may have been suspended for a much longer period during the COVID-19 pandemic than the IRS originally interpreted.The court concluded that, under the version of Internal Revenue Code Section 7508A in effect at the time, certain filing and payment deadlines were postponed for the entire COVID-19 disaster period, plus an additional 60 days.Under this interpretation, taxpayers who were assessed penalties for “late” actions between January 20, 2020 and July 10, 2023 may not have actually been late.While not every taxpayer who received a penalty during this period will qualify, those with substantial penalties and interest may want to explore whether a refund claim is worthwhile.What is the filing deadline?Refund claims are subject to strict filing deadlines. To preserve the right to a potential refund, taxpayers should file Form 843 on or before July 10, 2026, while the issue continues to be litigated.Although the decision may be appealed and the matter may take time to resolve, filing a protective claim would help preserve the opportunity to recover these amounts if the ruling is ultimately upheld.Does filing Form 843 guarantee a refund?No, filing does not guarantee a refund. Should you consider filing a claim?The answer depends on your specific circumstances and the amount of penalties and interest involved. For taxpayers with significant penalties, interest, or underpayment charges assessed during the affected period, a review may be worthwhile. Even if the outcome remains uncertain, filing a timely protective claim can help preserve your rights while the legal process continues.If you received IRS penalties or interest related to tax filings or payments between January 2020 and July 2023, now may be a good time to review your situation.
