Learn why some taxpayers may need to review old IRS penalties and interest from the pandemic years before the July 2026 deadline. Learn how Form 843, IRS transcripts, and the Kwong court case may affect possible refund claims.
IRS Pandemic Refunds: Check Old Penalties Before July 2026
Some Taxpayers May Need to Check Old Penalties Before July 2026
Some taxpayers may need to take a second look at IRS penalties and interest they paid during the pandemic years. This is not a new stimulus check, and it does not mean everyone is getting a refund. But a court case has raised an important question about whether the IRS may have charged some penalties and interest too early.
The issue involves pandemic-era tax deadlines, old IRS charges, and a possible deadline in July 2026. If you paid IRS penalties or interest during 2020, 2021, or the broader pandemic period, it may be worth checking your IRS records.
This matters because tax penalties are based heavily on dates. If a deadline was legally postponed, then some penalties or interest may need to be reviewed.
What Changed
A court case called Kwong v. United States raised questions about how long certain tax deadlines may have been postponed during the COVID emergency period.
The taxpayer in that case argued that his deadline was extended under a disaster relief rule in the tax code. The court agreed with that argument.
This does not automatically create refunds for everyone. But it has led tax professionals to look more closely at whether some pandemic-era IRS penalties and interest were calculated using the wrong deadline.
Why This Matters
The IRS system depends on deadlines. If a return is late, penalties may start from the due date. If a tax payment is late, interest may also begin from the due date.
But if the legal due date was moved, then the penalty or interest clock may have started too early.
That is the main issue. Some taxpayers may have paid charges that should be reviewed because the original deadline may not have been the correct deadline.
The Important Dates
The COVID national emergency began on January 20, 2020 and ended on May 11, 2023.
The court’s interpretation points to a possible disaster postponement period ending on July 10, 2023, because disaster relief rules may include an extra 60 days.
That is why July 10, 2026 matters. It is three years after July 10, 2023, and may be an important deadline for some refund claims.
However, this date is not a guarantee for everyone. Your own deadline may depend on when you filed, when you paid, what penalty was charged, and what tax year was involved.
This Is Not Automatic
One of the most important things to understand is that the IRS is not automatically sending checks to everyone under this court case.
This is different from earlier pandemic penalty relief programs, where the IRS automatically gave relief to certain eligible taxpayers.
In this case, some taxpayers may need to file a claim. That may involve Form 843, which is used to request a refund or ask for penalty abatement.
What Form 843 May Be Used For
Form 843 may come up if a taxpayer is asking the IRS to refund certain penalties or interest, or to remove a penalty.
This does not mean everyone should file Form 843. It also does not mean the IRS will approve every claim.
If the amount is small, it may not be worth paying a tax professional to review it. But if you paid meaningful penalties or interest, it may be worth asking whether Form 843 or a protective claim makes sense.
Who May Want to Check
This issue may matter most for people who had tax problems during the pandemic years.
You may want to check your records if you:
- Filed late during the pandemic period
- Paid taxes late
- Paid IRS penalties or interest
- Had estimated tax penalties
- Had an installment agreement
- Were self-employed
- Owned a small business
- Helped handle taxes for a spouse, estate, trust, or family business
For many people with simple returns who filed and paid on time, this may not apply. But if you had penalties, interest, or delayed tax issues, it may be worth reviewing.
What You Should Check
Start by looking at your IRS account records and transcripts.
You may want to review tax years such as 2019, 2020, 2021, and other pandemic-period years if they apply to your situation.
Look for charges such as:
- Late filing penalties
- Late payment penalties
- Estimated tax penalties
- Interest charges
- Refund claims that were denied as too late
The key question is not just whether you owed tax. The question is whether the IRS charged penalties or interest based on a deadline that may have been postponed.
Why Old Penalties May Matter
Think of it like a late fee on a bill.
If the bill was due on the 15th and you paid on the 20th, the late fee may make sense. But if the due date was legally moved to the 30th, then that late fee may need another look.
That is the basic idea behind this issue. It is about whether the correct deadline was used.
What This Means for You
If you paid IRS penalties or interest during the pandemic years, do not assume you qualify for a refund. But also do not ignore the possibility if the amount was meaningful.
The safest step is to check your IRS records. Look at when penalties or interest were charged, what tax year they relate to, and whether they were tied to pandemic-era deadlines.
If the numbers are large or the situation is complicated, consider speaking with a tax professional. This is especially true if you owned a business, had multiple tax years involved, or paid a lot in penalties or interest.
Watch Out for Scams
Any time people hear about possible IRS refunds, scammers may try to take advantage.
Be careful with calls, emails, or messages promising a guaranteed refund. Do not click strange links or give out your Social Security number to someone who contacts you unexpectedly.
Use official IRS records, keep copies of anything you file, and speak with a trusted tax professional if you need help.
Frequently Asked Questions
Is this a new stimulus check?
No. This is not a new stimulus check. It is about possible refunds or penalty relief for some taxpayers who paid IRS penalties or interest tied to pandemic-era deadlines.
Is the IRS automatically sending refunds?
No. This is not automatic. Some taxpayers may need to check their records and possibly file a claim.
What is the July 10, 2026 deadline?
July 10, 2026 may be an important deadline for some refund claims related to the pandemic disaster postponement period. But it may not apply the same way to everyone.
Who is most likely to be affected?
People who paid IRS penalties or interest during the pandemic years may want to check. This may include small business owners, self-employed workers, retirees with tax balances, and people who filed or paid late.
What should I look for in my IRS records?
Look for late filing penalties, late payment penalties, estimated tax penalties, interest charges, and refund claims that may have been denied because of timing.
Should I file Form 843?
Form 843 may be used for certain refund claims or penalty abatement requests. But you should not file blindly. If meaningful money is involved, consider asking a tax professional whether it applies to your situation.
The Key Point to Remember
This is a possible refund issue for some taxpayers, not a guaranteed payment for everyone.
If you paid IRS penalties or interest during the pandemic period, check your records before waiting too long. Look at the dates, review the charges, and ask for professional help if real money is at stake.
Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.