You May Be Eligible for a Refund of IRS Penalties and Interest Paid During the COVID Relief Period.
A recent court case, commonly referred to as the Kwong v. United States decision, may create an important refund opportunity for many taxpayers who paid IRS penalties or interest during the COVID disaster relief period.
Eligibility depends on each taxpayer’s facts and circumstances, and no refund is guaranteed. Our firm can review IRS transcripts and account history to determine whether filing a refund claim may be appropriate. However, if you or your business paid IRS penalties or interest for tax years 2019 through 2023, it may be worth having your IRS account reviewed before the claim window closes.
Why This Matters
During the COVID-19 disaster period, certain federal tax deadlines may have been affected by disaster relief rules. The Kwong decision raised the possibility that some penalties and interest charged by the IRS during that period may have been improperly assessed or may qualify for refund consideration.
For some taxpayers, this could mean a potential refund of IRS penalties, interest, or related charges previously paid.
Who Should Consider a Review?
You may benefit from a review if you are an individual taxpayer or a business, including a corporation, partnership, LLC, trust, estate, or nonprofit organization, that paid IRS penalties or interest connected to tax years 2019, 2020, 2021, 2022, or 2023.
Common examples may include failure-to-file penalties, failure-to-pay penalties, estimated tax penalties, or interest charged during the affected COVID disaster relief period.
What Our Firm Is Doing
Our office is currently reviewing both business and individual IRS accounts to identify possible refund opportunities related to this matter.
To determine whether you may qualify, we will need to review your IRS tax transcripts for the applicable years. These transcripts allow us to see the penalties, interest, payments, and IRS account activity for each tax year.
What You Need to Provide
If you already have your personal or business IRS transcripts for 2019 through 2023, you may email them to our office for review.
If you do not have your transcripts, we can help you obtain them directly from the IRS website. We can schedule a meeting and guide you through logging in with your ID.me account so the correct transcripts can be downloaded.
Important Deadline
Certain refund claims may be subject to filing deadlines that could expire as early as July 10, 2026. Because these claims may require transcript review, account analysis, and proper filing, we recommend starting the process as soon as possible.
