Tens of millions of taxpayers may be owed IRS refunds from COVID-era
The taxpayer advocate said the IRS may owe refunds or reduced penalties to tens of millions of taxpayers after court rulings on COVID-era deadlines.
- Last week, National Taxpayer Advocate Erin Collins warned that tens of millions of Americans may qualify for COVID-19-era IRS refunds or penalty abatements stemming from recent court rulings on postponed tax deadlines.
- Recent court decisions, including the Kwong case, determined that federal disaster declarations postponed filing and payment deadlines from Jan. 20, 2020, through May 11, 2023, meaning the IRS should not have assessed penalties during this period.
- Taxpayers must file paper Form 843 claims by July 10, 2026, to receive relief; the Taxpayer Advocate Service warns that sending forms via certified mail prevents loss, given no immediate filing confirmation.
- Collins recommended four IRS improvements, including a six-month filing extension and electronic submission portal, to ensure taxpayers avoid disparate results between the 'well advised' and those unaware of the opportunity.
- While the Justice Department may appeal the ruling, the Taxpayer Advocate Service suggests filing a 'protective claim,' which "allows you to preserve your right to a refund while the law is still uncertain.
23 Articles
23 Articles
Millions Could Miss Out On IRS Refunds From Pandemic Era — What Should You Do Before July 10 Deadline
Taxpayers may still reclaim pandemic-era penalties, yet a little-known July cutoff could shut the door. There is a quiet race under way in the US tax system. It is not being advertised. It is not widely understood. Yet it could decide whether millions of people recover money they never should have paid. At the centre of it lies a court ruling, a disputed interpretation of law, and a deadline that is now only days away. The warning comes from Eri…
Tens of Millions of Taxpayers May Be Owed IRS Refunds From Pandemic Era: Watchdog
The Internal Revenue Service’s internal watchdog said that tens of millions of U.S. taxpayers may be owed refunds or abatements of penalties or interest during the COVID-19 federal disaster period. “The bottom line: You may be entitled to a refund or reduction of assessed penalties and interest. For taxpayers dealing with financial pressures, these amounts can make a real difference. But most taxpayers must act by July 10, 2026, to request their…
Tens of Millions Face IRS Refund Deadline on Pandemic Penalties—But Time's Running Out Fast
Tens of millions of Americans sit on potential windfalls from the IRS. Penalties and interest charged during the Covid-19 chaos. A federal court says those weren’t due at all. But claims must hit the IRS desks on paper by July 10, 2026. Miss it, and the money vanishes. National Taxpayer Advocate Erin Collins sounded the alarm in an April 30 blog post. She estimates billions could flow back to everyday filers, business owners, anyone slapped with…
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