05/20/2026
Kwong v. United States is a landmark Court of Federal Claims ruling which determined that COVID-19 pandemic-era federal tax deadlines were automatically postponed. The court held that the disaster declaration legally suspended payment and filing deadlines from January 20, 2020, through July 10, 2023.
Taxpayer Advocate Service (.gov)
The Core Ruling
In the November 2025 decision, the court interpreted Internal Revenue Code Section. It ruled that:
Taxpayer Advocate Service (.gov)
Tax deadlines falling between January 20, 2020, and July 10, 2023, were legally postponed to July 11, 2023.
Because deadlines were postponed, the IRS lacked the legal authority to assess failure-to-file penalties, failure-to-pay penalties, or underpayment interest during that entire window.
Tax Controversy 360:
Who is Affected
Millions of taxpayers may be eligible to recover billions of dollars in penalties and interest that they paid on tax liabilities during the pandemic. This applies to individuals, businesses, and non-profits that accrued interest or penalties between 2020 and 2023.
Taxpayer Advocate Service (.gov)
What You Should Do
Because the IRS will not automatically issue refunds, taxpayers must claim their money back:
File a Claim: Affected taxpayers can submit a protective claim using IRS Form 843 for penalty abatements and refund requests.
Act Quickly: Taxpayers generally have three years to request a tax refund from the original filing deadline, meaning claims for the COVID-era window have impending expiration dates.
Track the Appeal: The government is actively appealing this decision, which adds legal complexity. Tax practitioners and taxpayer advocates are closely monitoring the appellate developments through resources like the AICPA Kwong v. United States FAQ.
