05/22/2026
IRS PENALTY REFUND
A landmark federal court decision (Kwong v. United States) that could put money back in your pocket.
The court ruled that the IRS improperly assessed late-filing penalties, late-payment penalties, and underpayment interest during the COVID-19 disaster window. If you paid these fees, you may be legally entitled to a refund—but you must act immediately to protect your rights.
The Situation at a Glance
The Legal Ruling
Kwong v. United States ruled the IRS lacked statutory authority under IRC § 7508A(d) to charge specific penalties/interest during the pandemic.
The Eligible Window
January 20, 2020, through July 10, 2023 (Accruals on tax years 2019–2022).
The Deadline
July 10, 2026. You must file a formal Protective Claim by this date or lose your refund rights forever.
The Catch
The IRS is aggressively appealing. We must file IRS Form 843 now to legally freeze the 3-year statute of limitations while the appeal plays out.
Refund Audit Process and Fee
THORNTON Financial LLC end-to-end compliance review to determine your exact exposure and handle the IRS filings.
Phase 1: Audit & Initial Filing ($450 Fee)
Full IRS account transcript pull for tax years 2019–2022.
Line-by-line auditing to calculate eligible penalties and interest.
Custom drafting of Form 843 embedded with strict citations to Kwong and P.L. 119-64 to shield against automated IRS rejections.
Phase 2: Certified Submission
Secure dispatch via USPS Certified Mail with Return Receipt Requested.
Establishes verifiable, airtight proof of timely filing before the July statutory deadline.
Important Disclosures
No Refund Guarantees
Because the Kwong case is currently moving through the federal appellate process, the IRS is expected to temporarily hold or reject these claims pending the final judicial outcome. Filing a protective claim freezes the clock; it does not guarantee an immediate payout.
