05/16/2026
Time Sensitive information
want to make sure taxpayers are aware of an important and time-sensitive issue that could affect tens of millions of people: the Kwong decision and its potential to unlock significant COVID-era refunds.
Under the court’s reasoning in Kwong v. United States, many filing and payment deadlines during the COVID-19 disaster period (January 20, 2020 – July 10, 2023) may have been postponed. If that interpretation ultimately holds, penalties and interest assessed during that time may have been improper—and taxpayers may be entitled to refunds. However, this relief is not automatic and most taxpayers must act by July 10, 2026 to protect their rights.
In the National Taxpayer Advocate's recent three-part blog series, she walks through what this means and what taxpayers can do:
🔹 Part I: alerts taxpayers of the Kwong decision and why this issue is significant, tens of millions of taxpayers may be eligible for refunds, but many risk missing out simply because they are unaware of the potential benefits.
🔹 Part II: provides practical guidance on how to review IRS account transcripts to identify whether penalties or interest were assessed during the COVID period and whether a refund claim may be appropriate.
🔹 Part III: outlines what to do, including how to file formal or protective refund claims, key deadlines, and common mistakes to avoid.
And taxpayers who did not file, made overpayments of tax, or didn’t claim eligible refundable credits in 2019, 2020, 2021, or 2022 may still be able to file tax returns for those years to recover their overpayments or claim their credits.
This is fundamentally a taxpayer rights issue. Without awareness and timely action, many taxpayers—especially those without representation—could lose out on potential refunds they may be entitled to receive and to ensure fair treatment of all taxpayers.
Our goal is simple: to get the word out so taxpayers have a fair opportunity to protect their rights while this issue is pending.
