Time-sensitive filing. Deadline July 10, 2026
Reclaim your COVID-era IRS penalties
Protective refund claims under Kwong v. United States, filed before the statute runs.
Tens of millions
Estimated eligible taxpayers
Per IRS NTA
$Billions
In refundable penalties + interest
Federally
July 10, 2026
Statute of limitations
Form 843 deadline
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Kwong eligibility check
Question 1 of 3
Did you pay any IRS penalties or interest between 2020 and 2023?
Background
What is the Kwong case?
On November 25, 2025, the U.S. Court of Federal Claims issued a ruling that may entitle tens of millions of taxpayers to refunds of IRS penalties paid during the COVID-19 pandemic. The case, Kwong v. United States, 179 Fed. Cl. 382, held that IRC §7508A(d) (the federal disaster-relief statute) provides a mandatory, self-executing postponement of all time-sensitive federal tax deadlines during a declared disaster. The court rejected IRS regulations that capped that relief at one year.
The COVID-19 federal disaster period ran from January 20, 2020 through May 11, 2023, plus a 60-day grace period under §7508A(d), extending to July 10, 2023. The ruling builds on Abdo v. Commissioner, 162 T.C. No. 7 (2024), which applied §7508A(d) to petition deadlines. Kwong extends that logic to penalties and interest across all federal tax obligations.
Per the National Taxpayer Advocate, tens of millions of taxpayers may be eligible, with potential refunds running into the billions. The DOJ has indicated it will appeal the ruling. That makes filing a protective claim before July 10, 2026 the only way to preserve your rights regardless of how the appeal resolves.
Eligibility
Who is eligible?
Any taxpayer who paid federal failure-to-file penalties, failure-to-pay penalties, or underpayment interest on a return due between January 20, 2020 and July 10, 2023 may be eligible. That includes taxpayers who paid during IRS examinations or under installment agreements, not just those who paid voluntarily on filing (per IRS Solutions).
Individuals
Wage earners, self-employed taxpayers, and retirees who filed late or underpaid estimated taxes during the COVID disaster period.
Businesses
S-corporations, partnerships, C-corporations, and sole proprietors with federal penalties assessed for pandemic-era returns.
U.S. Citizens Abroad
Expats with federal filing obligations during the disaster window. We file via certified international mail with tracking to satisfy the timely-filing requirement.
Key terms defined
- Failure-to-file penalty
- An IRS penalty under IRC §6651(a)(1) assessed when a tax return is filed after its due date (including extensions). Typically 5% of unpaid tax per month, up to 25%.
- Failure-to-pay penalty
- An IRS penalty under IRC §6651(a)(2) assessed when tax shown on a return is not paid by the due date. Typically 0.5% of unpaid tax per month, up to 25%.
- Underpayment interest
- Interest charged by the IRS under IRC §6601 on unpaid tax balances, accruing daily at the federal short-term rate plus 3 percentage points.
- Estimated-tax penalty
- A penalty under IRC §6654 (individuals) or §6655 (corporations) for failing to pay sufficient estimated taxes throughout the year. These are included in the Kwong refundable categories.
Key dates
Key dates in the Kwong timeline
January 20, 2020
COVID disaster period begins
IRC §7508A(d) automatically postpones tax deadlines during the federal disaster declaration.
May 11, 2023
COVID disaster period ends
The federal COVID disaster declaration officially terminates.
July 10, 2023
Disaster postponement deadline
The 60-day grace period under §7508A(d) extends covered deadlines to this date.
November 25, 2025
Kwong v. United States decision
The U.S. Court of Federal Claims rules that §7508A(d) provides mandatory, self-executing postponement.
April 2026
IRS National Taxpayer Advocate confirms scope
NTA blog estimates tens of millions of taxpayers may be eligible for refunds, with billions in potential refunds.
July 10, 2026
Statute of limitations runs
Final deadline to file Form 843 protective refund claims under IRC §6511(a). After this date, claims are barred even if Kwong is upheld on appeal.
Refundable amounts
What can be recovered?
The Kwong ruling covers any penalty or interest the IRS assessed on a federal tax obligation that became due between January 20, 2020 and July 10, 2023. Per the National Taxpayer Advocate, tens of millions of taxpayers may qualify, with potential refunds running into the billions of dollars across all eligible filers.
- Failure-to-file penalties
Penalties assessed under IRC §6651(a)(1) for returns filed after the due date during the COVID disaster window. These are among the most common penalty types assessed during 2020 through 2022 (per Greenback Tax Services).
- Failure-to-pay penalties
Penalties assessed under IRC §6651(a)(2) for tax balances not paid by the return due date. Eligible if the underlying tax obligation arose during the disaster period.
- Underpayment interest
Interest charged under IRC §6601 on unpaid balances during the disaster period. The Morgan Lewis analysis notes this may include interest that accrued beyond the IRS's previously capped one-year relief window.
- Estimated-tax underpayment penalties
Penalties under IRC §6654 (individuals) and §6655 (corporations) for insufficient estimated tax payments during the pandemic years. Eligible for refund where the penalty arose during the disaster window.
- Potential overpayment interest owed by the IRS
Where the IRS was slow to process refunds during the disaster period, the extended deadline may affect when overpayment interest begins to accrue in the taxpayer's favor (per Journal of Accountancy).
How we file
Our process
We handle the entire claim from eligibility review through certified-mail submission and ongoing monitoring. Here is exactly what happens.
- 1
Free 10-minute eligibility check
You tell us which tax years were affected and what the IRS assessed. We confirm whether your penalties fall within the January 20, 2020 through July 10, 2023 disaster window and estimate the claim amount. No charge, no commitment.
- 2
CPA review of your IRS notices and prior-year returns
Our licensed CPA reviews your IRS assessment notices (CP14, CP501, or exam reports) and the corresponding federal tax returns to verify the penalty types, amounts, and tax years. We calculate the exact claim figure.
- 3
Prepare Form 843 with required Kwong language
We prepare Form 843 (Claim for Refund and Request for Abatement), marked "Protective Refund Claim Pursuant to Kwong v. United States" across the top, with a complete §7508A(d) explanation, claim-amount calculation, and proof that your filing is within the extended disaster-period deadline.
- 4
Certified-mail submission with tracking
Form 843 is a paper-only filing. We send it via USPS certified mail with return receipt (or trackable international mail for filers abroad) to create a timestamped record of timely filing. You receive the tracking number and certified-mail confirmation.
- 5
Monthly status updates until the IRS responds
We monitor the claim and send you a written status update every month. When the IRS responds (whether to approve, deny, or request documentation), we advise on next steps, including appeal options if necessary.
Recent news & updates
November 25, 2025
U.S. Court of Federal Claims rules in Kwong v. United States
Court holds that IRC §7508A(d) mandates automatic postponement of federal tax deadlines during COVID disaster period.
Source: Court of Federal ClaimsApril 2026
NTA estimates tens of millions of taxpayers eligible
National Taxpayer Advocate confirms broad eligibility and recommends taxpayers file protective claims by July 10, 2026.
Source: taxpayeradvocate.irs.gov2026
IRS appeals Kwong ruling: protective claims preserve rights
Even if the appeal succeeds, taxpayers who filed protective claims by July 10, 2026 retain their refund rights.
Source: Morgan Lewis · AprioQuestions
Frequently asked questions
Further reading
Related guides
Kwong Refund Claims Overview
What the Kwong ruling says, who qualifies, and the July 10, 2026 deadline — the full picture in one guide.
Read guide →How to Estimate Your Kwong Refund Amount
Step-by-step method for calculating your failure-to-file and failure-to-pay penalty refund, with a worked example.
Read guide →Form 843 Protective Claim Checklist
Every document, line of required language, and mailing step for a complete Kwong protective claim before the deadline.
Read guide →Don't miss the deadline
Don't leave your refund on the table
The July 10, 2026 statute of limitations is firm. A free 10-minute eligibility check costs nothing. Missing the deadline costs your entire claim.