The regular 2026 tax filing season ended last month, and many taxpayers have already received their refunds. But tens of millions of Americans may also be due refunds of a different sort — on tax penalties and interest charged during the Covid-19 pandemic.
The refunds aren’t guaranteed, because they result from a court decision that the government may still appeal, according to Erin M. Collins, the national taxpayer advocate. She heads a group within the Internal Revenue Service that works on behalf of taxpayers.
But to preserve your eligibility should the court ruling stand, you must file refund claims with the I.R.S. by July 10, Ms. Collins said in blog posts aimed at making people aware of the situation. “At the center of this issue are taxpayers who may be entitled to refunds but will never claim them,” she said in an email.
I.R.S. data shows that many potentially affected taxpayers are low- and moderate-income people who are less likely to have professional tax help and to hear about the potential refunds, Ms. Collins said. “For them, a refund is not just a technical tax adjustment,” she said. “It can make a real financial difference.”
Here’s what to know about the refunds.
Who is eligible for the possible refunds?
You may qualify for a refund or an abatement of certain penalties and interest charged by the I.R.S. from Jan. 20, 2020, through May 11, 2023. Penalties may include those imposed for filing a late return, failing to pay taxes or failing to make estimated tax payments.
What led to this?
The refunds result from recent court cases, tax experts say, particularly Kwong v. United States, a lawsuit decided in the U.S. Court of Federal Claims, which hears financial claims against the government.
In November, the court found that because of a law in effect early in the pandemic, tax filing and payment deadlines should have been automatically postponed for the duration of the pandemic disaster declaration, plus 60 days.
The disaster declaration began in early 2020 and lasted through May 11, 2023. The extra 60 days extended the period, for tax purposes, to July 10, 2023. I.R.S. rules generally allow taxpayers three years after filing a return to claim a refund, which pushes the deadline to July 10, 2026.
President Trump, then in his first term, declared a nationwide emergency because of the coronavirus on March 13, 2020. The court found in the tax case that the relevant period began on Jan. 20, 2020. That was when Mr. Trump declared that the emergency conditions began in California, where the plaintiff lived.
“By the court’s logic, the I.R.S. should not have assessed penalties for late filing or payment during that 3.5-year period, nor charged interest on those amounts,” Ms. Collins wrote.
In the claims court ruling, Judge Molly R. Silfen wrote that while disaster declarations often apply to local, short-term weather events, the pandemic was an “unprecedented and long-lasting” national event. “Although Congress may not have anticipated a disaster declaration lasting more than three years,” the judge wrote, “the statute’s express text nevertheless applies.”
Melanie Lauridsen, vice president of tax policy and advocacy at the American Institute of Certified Public Accountants, said that the law was later revised, and that tax deadlines are now automatically extended for a maximum of 120 days from the start of a federally declared disaster. “Covid was an extreme example, and the law has since changed,” she said.
When might I get my money back?
People shouldn’t expect to see payments quickly. The federal government is likely to appeal the court decision, and it may be years before the matter is resolved, Ms. Collins said. If the government prevails, no refunds will be issued.
Neither the I.R.S. nor the Justice Department responded to a request for comment. Kenneth Kies, an assistant secretary at the Treasury Department, told The Associated Press that the Trump administration considered that the Kwong case “was wrongly decided because it is a misreading of the plain language of the statute.”
“We will continue to defend the statutory language as written,” he said in a statement.
Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, emphasized that the matter wasn’t settled. “Taxpayers shouldn’t assume that claims will be automatically accepted,” he said in an email.
But they should consider taking action. The court decision creates a “credible” basis for challenging pandemic-era penalties and interest, Mr. O’Saben said, but “the real risk is waiting too long and losing the ability to make that argument at all.”
How can I tell if I’m affected?
Tax experts said taxpayers should review their federal income tax transcript, a document that summarizes taxes paid as well as any penalties and interest charged. Jessica Marine, a partner specializing in tax matters at Frost Law, recommended checking transcripts for the tax years 2019 through 2022.
The fastest way to see your transcripts is to establish an individual I.R.S. account, the agency says. You can set up an account on the I.R.S. website using the ID.me service. (Be prepared to verify your identity with a photo of a government ID, like your driver’s license, and a selfie, or by a live call with a video chat agent.)
If you can’t or don’t want to create an online account, you can have transcripts mailed to you by applying on the I.R.S. website or calling 800-908-9946. It typically takes five to 10 calendar days for delivery.
“In most cases, the amount should be easily obtainable if you know how to read an I.R.S. transcript,” Ms. Marine said.
Taxpayers sometimes find reading transcripts to be challenging, Ms. Collins said. She included a sample in one of her blog posts, highlighting how penalties and interest appear on a transcript.
What if I paid penalties or interest during the Covid emergency?
If your transcript confirms that you paid penalties or interest — or that the I.R.S. assessed them, even if you didn’t pay — you can complete and submit I.R.S. Form 843, titled “Claim for Refund and Request for Abatement,” by July 10.
Since the court action isn’t final, you can make clear that you are filing a “protective claim” to preserve your rights while the law is uncertain, Ms. Collins said. To do this, she suggested in her blog, simply write “Protective Refund Claim Pursuant to Kwong Case” or similar language across the top of the form.
The instructions for Form 843 are straightforward, Mr. O’Saben said, and some taxpayers may be able to complete it on their own.
Ms. Marine advised that tax filers who had more than $5,000 in penalties and interest assessed from tax years 2019 through 2022, or whose situation was otherwise complex, “really should consider” consulting an accountant or a tax lawyer. The understanding of the impact of the court case is evolving, she said, and a professional can help keep your claim on track.
How should I submit the form?
The form cannot be filed electronically, Ms. Collins said, but must be completed on paper and sent by mail. Make sure to use certified mail so you have a receipt to prove you sent the document. She is urging the I.R.S. to make an electronic filing option available to avoid a deluge of paper requests, but it is unclear if that will happen.
Ms. Collins warned taxpayers to be wary of potential scams related to pandemic-era refunds, such as offers of quick refunds or guaranteed eligibility. “Taxpayers,” she said, “should approach any unsolicited tax-related advice with caution.”
