06/18/2026
Did you pay IRS penalties or interest related to your 2019–2022 tax returns? If so, a recent court decision may create an opportunity to preserve your rights to claim a future refund.
Why This Matters
A recent federal court case, Kwong v. United States (November 25, 2025), has drawn significant attention among tax professionals. The Court of Federal Claims concluded that under Internal Revenue Code §7508A(d), federal tax deadlines may have been automatically suspended during the COVID-19 disaster period—from January 20, 2020, through July 10, 2023.
If this interpretation is ultimately upheld, it could mean that certain:
Failure-to-file penalties
Failure-to-pay penalties
Related interest charges
were improperly assessed during that period.
In addition, the ruling could potentially extend refund claim statutes of limitation, creating opportunities for certain taxpayers to revisit tax years 2019 through 2022.
The Catch: The Case Is Still Under Appeal
The IRS disagrees with the court's interpretation and has appealed the decision. Because the issue remains unresolved, many tax professionals are recommending that taxpayers consider filing protective refund claims to preserve their rights while the litigation continues.
The current recommendation is to file any protective claims before July 10, 2026.
Who Should Consider Filing?
You may benefit from filing a protective refund claim if you:
Paid substantial IRS penalties and/or interest related to tax years 2019–2022
Filed returns or made payments late during the COVID period
Want to preserve your ability to seek a refund if the courts ultimately rule in favor of taxpayers
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