Jon Wasser Flags July 10 Deadline for Irs Pandemic Penalty Refund
Millions of taxpayers may have a claim for an irs pandemic penalty refund, but the window to request it closes for most on July 10, 2026. The National Taxpayer Advocate said the issue may reach people with income, employment, estate, gift and excise tax obligations, plus some who filed late international information returns.
The refund or abatement claims stem from Kwong vs. United States, which interpreted Section 7508A(d) of the tax code. Under that ruling, once a federally declared disaster is in effect, applicable tax deadlines are postponed for the disaster period plus 60 more days, a reading that would have pushed deadlines for tax years 2019, 2020, 2021 and 2022 filings to July 10, 2023.
National Taxpayer Advocate July 10, 2026
The National Taxpayer Advocate said many affected taxpayers have low or moderate incomes. In a blog post about the deadline, the office said, "As a result, they face a greater risk of missing the opportunity to claim refunds to which they may be entitled," and said the post is meant to raise awareness rather than offer legal advice.
In a separate statement quoted by the article, the advocate said, "Impacted taxpayers represent a broad cross-section of the public, including individuals, small businesses, large corporations, estates, and trusts. The issue reaches taxpayers with obligations related to income, employment, estate, gift, and excise taxes. It may also affect taxpayers who filed late international information returns, which can result in significant penalties even when no tax is due,"
Kwong vs. United States
The dispute turns on whether the IRS must follow that court ruling. The IRS has disagreed with it, and the Department of Justice is likely to appeal, according to the article, leaving the issue headed for more litigation even as the filing clock keeps running for taxpayers who want money back.
Taxpayers seeking a refund or abatement must file a claim with the IRS. The claim must be filed within three years of the date they filed the return or two years from the date they paid the tax, and tax account transcripts can show each year's payments, penalties and interest with the dates they were made or assessed.
Tax Account Transcripts
Those transcripts are available online by registering for an Individual Online Account, by mail, or by calling 800-908-9946. For taxpayers who think a penalty from the pandemic period may be covered, the practical step is to check the transcript first, then file the claim before the deadline that applies to their case.
