IRS Sets July 10 Deadline For Millions To Claim COVID-Era Refunds
The IRS says millions of taxpayers have until July 10, 2026 to file claims that could recover COVID-era penalties, interest and missed refunds.[1]
National Taxpayer Advocate Erin Collins has advised taxpayers to file protective claims to preserve their rights while litigation continues.[1] She said filers should use Form 843 for penalty or interest refunds labeled "Protective Refund Claim Pursuant to Kwong Case" or file amended returns on Form 1040-X for changes to income, deductions, credits, or filing status.[1]
In November 2025, the U.S. Court of Federal Claims in Kwong v. United States ruled that Internal Revenue Code section 7508A suspended federal tax filing and payment deadlines nationwide for the COVID-19 disaster period.[1] The IRS appealed that decision to the Federal Circuit on May 15, 2026, leaving the legal landscape unsettled and making a timely protective claim important.[1]
Tax professionals urging action note that filing by July 10 preserves taxpayers' ability to seek refunds while appeals proceed. Tens of millions of taxpayers who were assessed penalties or interest, filed late international information returns, or missed credits during the COVID-19 disaster period (January 20, 2020 through July 10, 2023) may be eligible for abatements or refunds. The IRS has signaled steps to ease filing by adding an electronic option for certain protective claims, but experts warn the scope of possible refunds remains legally uncertain.
The mainstream summary does not mention that tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest assessed during the COVID-19 disaster period, which spanned from January 20, 2020, to July 10, 2023. This detail highlights the scale of potential claims that could affect a significant portion of the population, emphasizing the urgency for taxpayers to act before the July 10 deadline. According to the IRS Taxpayer Advocate Service, the implications of the Kwong ruling could lead to widespread financial relief, yet the summary downplays the potential complexities involved in navigating the claims process.
While the mainstream account notes that the IRS has added an electronic option for certain protective claims, it does not address the concerns raised by tax professionals about the ongoing legal uncertainties surrounding the validity of these claims. For instance, tax attorney @IRS_MEDIC questions the clarity of the ruling's scope, suggesting that taxpayers may face challenges in understanding their eligibility. Furthermore, misunderstandings about the July 10 deadline could lead to missed opportunities for broader COVID-era relief, as highlighted by Bloomberg Tax, indicating that the situation is more nuanced than the summary suggests.
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📊 Relevant Data
Tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest assessed during the nearly 3.5-year COVID-19 federal disaster period.
Tens of Millions of Taxpayers May Be Eligible for Significant Tax Refunds – If They Act on or before July 10 (Part I) — IRS Taxpayer Advocate Service
📌 Key Facts
- A federal court in Kwong v. United States ruled in November 2024 that IRS filing and payment deadlines should have been suspended during the COVID-19 disaster period, effectively extending the deadline to July 10, 2023.
- National Taxpayer Advocate Erin Collins says taxpayers now generally have until July 10, 2026, to file refund or protective claims tied to those extended deadlines.
- Eligible taxpayers include those assessed or who paid penalties and interest for late filing or payment, those with late international information returns, and those who may have missed refunds or credits during the disaster period.
- Collins advises filing Form 843 for penalty or interest refunds, labeled "Protective Refund Claim Pursuant to Kwong Case," or Form 1040-X for changes to income, deductions, credits, or filing status.
- The Department of Justice is expected to appeal the Kwong ruling, so filing by July 10 preserves rights while the law remains unsettled.
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