06/15/2026
A recent court case, Kwong v. United States (Kwong), has created a possible opportunity for some taxpayers to claim refunds or relief related to IRS penalties and interest charged during the COVID-19 period.
For purposes of this notice, the âCOVID-19 periodâ generally refers to the period beginning January 20, 2020, and ending July 10, 2023, although the relevant dates for any particular claim may depend on the taxpayerâs facts and applicable limitation rules.
However, the law is not settled yet, and the outcome could take years to finalize. To protect your rights, you may need to take action before July 10, 2026.
Why This Matters
During this period, the IRS charged many taxpayers penalties and interest for things like late filing or late payments.
This court case suggests that some of those charges may be refundable or eligible for reduction, but this is not guaranteed.
In some cases, you may need to file a protective claim now to preserve your ability to request a refund later.
Do You Need to Take Action?
You may want us to review your situation if any of the following apply during the COVID-19 period:
You paid or were charged IRS penalties (late filing, late payment, estimated taxes, etc.)
You were charged interest on unpaid taxes or penalties
You received IRS notices showing penalties or interest
You had ongoing IRS issues, such as:
Audits or appeals
Payment plans or collections
Requests for refunds or penalty relief
Important: Answering âyesâ does not mean you qualify for a refundâit simply means your situation may be worth reviewing.
The IRS may not provide relief automatically in situations where a claim is required. If you believe one of these situations may apply and would like us to review whether this issue may be relevant to your situation, please contact our office promptly, and no later than June 19, 2026.
Because obtaining IRS transcripts and reviewing assessment and payment history may take time, itâs imperative that you contact us well before July 10, 2026, if you want us to evaluate whether a refund claim, abatement request, or protective claim may be appropriate.
