A recent court case may provide a benefit to you based on your previous years’ tax returns. The court case is called Kwong v. United States.
Recently, courts decided that during the COVID pandemic, there should have been disaster related filing and payment deadline postponements similar with other federal disasters. The court case argues that the COVID pandemic should have caused tax filing and payment deadlines to be postponed during the period of January 20, 2020 through May 11, 2023.
While there has been a decision on the court case, the IRS has appealed the court’s decision, which may mean that the disaster-related filing relief is not definitive at this point. Based on the court case, you have the option to apply for a protective refund due to a filing deadline of July 10, 2026. A protective refund claim allows you to preserve your right to a refund while the law is uncertain. If you paid a federal failure to file penalty, underpayment penalty or interest on your 2019, 2020, 2021, 2022 tax return, you may qualify for a refund once all appeals are exhausted.
To determine whether you may qualify for a refund of penalties and interest paid during the COVID pandemic, obtain your IRS account transcript for each year. If the transcripts show penalty codes 277, 167, 171, or 181, or interest codes 191 or 197, you may be eligible for a refund. To file a protective claim, complete Form 843 for each applicable year and mail each form to the IRS with tracking.
We do want to stress that the refund of interest and penalties is still unknown and not 100% certain. We also are unsure of the timeline to receive the refund. However, the IRS will only accept form 843 relating to the Kwong v. United States court case through July 10, 2026.
Further information can be found on the Taxpayer Advocate Service website. Links provided to their recent blog. Please give us a call at 715-695-2602 if you have any questions.
Tens of Millions of Taxpayers May Be Eligible for Significant Tax Refunds - Part I
How to Use IRS Tax Account Transcripts to Identify Potential COVID-19 Disaster Relief Refunds - Part II
Protect Your Potential COVID-19 Disaster Relief Refunds by Filing Protective Claim - Part III
IRS Form 843
Completed IRS Form 843 Example
Recently, courts decided that during the COVID pandemic, there should have been disaster related filing and payment deadline postponements similar with other federal disasters. The court case argues that the COVID pandemic should have caused tax filing and payment deadlines to be postponed during the period of January 20, 2020 through May 11, 2023.
While there has been a decision on the court case, the IRS has appealed the court’s decision, which may mean that the disaster-related filing relief is not definitive at this point. Based on the court case, you have the option to apply for a protective refund due to a filing deadline of July 10, 2026. A protective refund claim allows you to preserve your right to a refund while the law is uncertain. If you paid a federal failure to file penalty, underpayment penalty or interest on your 2019, 2020, 2021, 2022 tax return, you may qualify for a refund once all appeals are exhausted.
To determine whether you may qualify for a refund of penalties and interest paid during the COVID pandemic, obtain your IRS account transcript for each year. If the transcripts show penalty codes 277, 167, 171, or 181, or interest codes 191 or 197, you may be eligible for a refund. To file a protective claim, complete Form 843 for each applicable year and mail each form to the IRS with tracking.
We do want to stress that the refund of interest and penalties is still unknown and not 100% certain. We also are unsure of the timeline to receive the refund. However, the IRS will only accept form 843 relating to the Kwong v. United States court case through July 10, 2026.
Further information can be found on the Taxpayer Advocate Service website. Links provided to their recent blog. Please give us a call at 715-695-2602 if you have any questions.
Tens of Millions of Taxpayers May Be Eligible for Significant Tax Refunds - Part I
How to Use IRS Tax Account Transcripts to Identify Potential COVID-19 Disaster Relief Refunds - Part II
Protect Your Potential COVID-19 Disaster Relief Refunds by Filing Protective Claim - Part III
IRS Form 843
Completed IRS Form 843 Example