Tens of millions of taxpayers may be owed IRS refunds from COVID-era

Key Points:

• The IRS' National Taxpayer Advocate announced that tens of millions of taxpayers may be eligible for refunds or reduced penalties and interest due to postponed filing deadlines during the COVID-19 emergency from January 20, 2020, to May 11, 2023.
• This development follows court rulings, including the Kwong case, which determined that filing and payment deadlines were extended throughout the disaster period, meaning penalties and interest assessed during this time may have been improperly applied.
• Affected taxpayers must file refund claims using IRS Form 843 by July 10, 2026, and the IRS requires these claims to be submitted via paper mail, preferably by certified mail to ensure proof of timely filing.
• The National Taxpayer Advocate urged the IRS to publicize the issue widely, consider a six-month extension for claims, provide systemic relief to avoid individual filings, and create an electronic submission option.
• Tax professionals, members of Congress, and the media are encouraged to inform taxpayers about this opportunity to claim refunds or abatements to prevent disparities between informed and unaware taxpayers.