IRS COVID Penalty Refunds: Claim Before July 10, 2026 Deadline

The IRS could owe you money if you paid penalties for late tax filing or payments during the COVID-19 pandemic. A recent federal court ruling in Kwong v. United States means some taxpayers can get refunds or have penalties removed. You have until July 10, 2026, to file a claim using Form 843, but it is not automatic.

Background on the Kwong v. United States Ruling

The case Kwong v. United States changed how the IRS handles certain penalties from the pandemic years. The court ruled that federal emergency laws during COVID-19 extended tax filing deadlines. This applies to penalties assessed for late filings or payments between January 20, 2020, and July 11, 2023.

Many people faced these fines during that time because of shutdowns, health issues, or other disruptions. The ruling covers standard U.S. tax returns as well as some international information returns filed late in that window. Penalties can add up quickly, so this decision opens the door for relief on amounts already paid or still owed.

Who Qualifies for IRS COVID Penalty Refunds?

You may qualify if you meet these main points:

• You filed a tax return late between January 20, 2020, and July 11, 2023.
• You paid late-filing or late-payment penalties for those years.
• You still owe those penalties.
• The penalty ties to an international information return filed late in the same period.

The relief focuses on the dates of the penalties, not why you filed late. Check your records for IRS notices from that time. If you paid years ago, it might not be fresh in your mind, but the money could still come back.

How to File Form 843 for a Refund or Abatement

Claims require IRS Form 843, called the Claim for Refund and Request for Abatement. Download it from the IRS website at irs.gov/forms-pubs/about-form-843. Do not e-file or fax it; you must mail the form.

Here are the steps:

1. Fill out the form with exact details: tax year, penalty dates, amounts, and types.
2. Attach proof like IRS notices, payment receipts, or filing records.
3. Mail it to the IRS service center for your state. Find the right address on IRS.gov based on where you file current returns.
4. Keep copies of everything you send.

If you owe penalties, use the form to request abatement, which removes the debt. For refunds on paid penalties, it works the same way. Tax experts like those from Maloof Whatley advise acting soon to avoid missing out.

Check Your IRS Account and Get Help

Not sure about your penalties? Log into your IRS online account at irs.gov/account. It shows transcripts of notices, payments, and balances. You can also call 800-829-1040 for records.

The IRS Taxpayer Advocate Service warns against waiting. Review your situation now to see if penalties from 2020 to 2023 match the eligible period. This step helps you decide if filing Form 843 makes sense.

Key Deadlines and Final Tips

Postmark your Form 843 by July 10, 2026, to qualify. Mail early to beat any delays near the deadline. Be precise with details, as vague claims get denied.

International filers should double-check if their penalties fall in the January 20, 2020, to July 11, 2023, range, as those can be large. If you need more guidance, consult a tax professional.

Conclusion

The Kwong v. United States ruling offers a real chance to recover IRS COVID penalty refunds or erase old debts. With the July 10, 2026, deadline approaching, review your records, grab Form 843, and mail your claim today. Acting fast ensures you do not miss this opportunity for financial relief.