The Kwong ruling may affect your right to request a refund or reduction.
IRS Penalty & Interest Review After the Kwong Decision
If the IRS charged you penalties or interest for late filing, late payment, estimated taxes, or certain tax issues during the COVID federal disaster period, you may have an opportunity to request a refund or abatement.
The issue comes from the recent Kwong v. United States decision, which may affect certain IRS deadlines during the COVID federal disaster period. The law is still developing, and refunds are not guaranteed. But many taxpayers may need to act before July 10, 2026 to preserve their rights.
Lothamer Tax Resolution can review your IRS situation and help determine whether a refund claim, abatement request, or protective claim may be appropriate.
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A recent federal tax case, Kwong v. United States, may create an important opportunity for taxpayers who were assessed IRS penalties or interest during the COVID federal disaster period.
The issue centers on whether certain federal tax filing and payment deadlines were automatically postponed during the COVID disaster declaration period. If the taxpayer-favorable interpretation ultimately holds, some taxpayers may be able to seek refunds of penalties or interest they already paid, or request abatement of penalties or interest they still owe.
But this is not automatic.
Most taxpayers who may be affected will likely need to file the correct claim before the applicable deadline. For many taxpayers, that key deadline may be July 10, 2026.
Before you file anything with the IRS, Lothamer can help review your situation and determine what next step may make sense.
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You may want to request a Kwong-related IRS penalty and interest review if:
- You filed a federal tax return late during the COVID period
- You paid federal taxes late for tax years 2019, 2020, 2021, or 2022
- The IRS assessed failure-to-file penalties
- The IRS assessed failure-to-pay penalties
- You were charged estimated tax penalties
- You paid IRS interest connected to penalties or late payments
- You still owe IRS penalties or interest from the affected period
- You received IRS notices involving penalties, interest, or balances due
- You are unsure whether Form 843 or a protective claim applies to you
Eligibility depends on the facts. Your IRS transcript, assessment dates, payment dates, and tax periods all matter.
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A refund claim asks the IRS to return money you already paid. This may apply if you paid IRS penalties or interest that could be affected by the Kwong decision.
An abatement request asks the IRS to reduce or remove penalties or interest that have been assessed but not yet paid.
A protective claim helps preserve your rights while the law is still uncertain. Because the Kwong issue is still developing, many taxpayers may need to file a protective claim before the deadline so they do not lose the ability to seek relief later.
FAQs
Kwong v. United States is a federal tax case involving whether certain IRS filing and payment deadlines were postponed during the COVID federal disaster period. If the taxpayer-favorable interpretation ultimately holds, some taxpayers may be able to seek refunds or abatements of certain IRS penalties and interest.
No. Refunds are not automatic and are not guaranteed. The issue is still developing, and the IRS/government may disagree with the broader interpretation. Many taxpayers may need to file a refund claim, abatement request, or protective claim to preserve their rights.
For many taxpayers, July 10, 2026 may be the deadline to file a claim related to penalties or interest affected by the COVID disaster-period deadline issue. Your exact deadline may depend on your tax year, filing date, payment date, and IRS account history.
Form 843 is an IRS form used for certain refund claims and requests for abatement. Some Kwong-related penalty and interest claims may require Form 843, but the right filing approach depends on your situation.