COVID-era IRS penalty & interest refund claims
Key Questions
What is the Kwong ruling and how does it affect IRS penalties?
The Kwong ruling allows millions of taxpayers to claim abatements for failure-to-file and failure-to-pay penalties plus underpayment interest refunds for 2020-2023 tax years. Claims must be filed using Form 843 by the July 10, 2026 deadline.
Who is eligible to file for COVID-era IRS penalty refunds?
Taxpayers who paid penalties or interest tied to COVID-era deadlines in 2020 through 2023 may qualify for refunds or abatements. Both spouses must have IRS Online Accounts to use the new electronic filing option.
What is the deadline for filing Form 843 claims under the Kwong ruling?
The deadline to file protective refund claims is July 10, 2026. Missing this date means forfeiting potential refunds, as only a tiny fraction of eligible taxpayers are expected to file.
How can taxpayers file Form 843 electronically with the IRS?
The IRS launched an electronic Form 843 portal on July 1 for interest and penalty claims only. Taxpayers need IRS Online Accounts, and a comprehensive how-to guide is available to assist with the process.
Why does filing taxes late cost more than paying late?
Late filing triggers penalties and interest that accumulate significantly, often totaling about ten times the cost of paying on time. This reinforces the urgency to file Form 843 claims before the deadline even if payment is not immediate.
What warnings has the National Taxpayer Advocate issued about these claims?
The NTA warns that only a tiny fraction of eligible taxpayers will file for the refunds. This highlights the need for awareness and action before the July 10, 2026 cutoff.
Do I need an IRS Online Account to claim these refunds?
Yes, both spouses require IRS Online Accounts to access the electronic Form 843 portal for interest and penalty claims. ID.me verification is typically needed to create these accounts.
What types of penalties and interest qualify for abatement under this relief?
FTF and FTP penalties along with underpayment interest for 2020-2023 tax years are covered. Claims are processed via Form 843, with the new portal supporting electronic submission for qualifying amounts.
Millions eligible for 2020-2023 FTF/FTP abatements and underpayment interest refunds via Form 843 by July 10, 2026 under Kwong ruling. IRS launched electronic Form 843 portal for interest/penalties only as of July 1; both spouses need IRS Online Accounts. Deadline is TOMORROW (July 10). Comprehensive how-to guide available. NTA warns only a tiny fraction will file. Filing late costs 10x more than paying late — act now.