Potential IRS Refund Claims Related to COVID Disaster Relief
and the Kwong Case

Important Deadline: July 10, 2026

Some taxpayers may have an opportunity to request refunds or abatements of certain IRS penalties and related interest connected to returns or payments affected during the COVID-19 disaster period. For many taxpayers, the key deadline to submit a protective claim is July 10, 2026.

This page is intended to provide a general, do-it-yourself overview for clients who want to explore whether they may be eligible and decide whether to file a claim on their own.

Please note: This information is educational only. It is not legal or tax advice for your specific situation.


What Is This About?

During COVID-19, the federal government declared a national disaster period beginning January 20, 2020. A court case commonly referred to as Kwong concluded that, under the disaster relief rules, certain federal tax deadlines may have been automatically postponed through July 10, 2023.

As a result, some taxpayers may have grounds to ask the IRS to refund or remove:

  • Late-filing penalties

  • Late-payment penalties

  • Related interest

In many cases, the potentially affected periods involve tax years 2019, 2020, 2021, and 2022.

Who Might Want to Look Into This?

  • You may want to review your situation if any of the following apply:

  • You filed one or more federal tax returns during the period from January 20, 2020, through July 10, 2023

  • You made payments to the IRS during that period

  • The IRS assessed or collected penalties or interest for filing or payment delays during that period

  • You received IRS notices showing failure-to-file, failure-to-pay, or interest charges for one or more years from 2019 through 2022

Not everyone will qualify, and the amount potentially recoverable will vary by taxpayer.

What Is a “Protective Claim”?

A protective claim is a filing that helps preserve your rights while the law is still developing. In this situation, many taxpayers may use Form 843, Claim for Refund and Request for Abatement, to ask the IRS to refund or abate penalties and related interest that may have been improperly charged.

Because the legal landscape is still evolving, some people may choose to file a protective claim even if they are not yet certain whether the IRS will ultimately allow the refund.

Before You File

Before preparing anything, gather the following:

  • Copies of your federal returns for 2019–2022

  • Any IRS notices showing penalties or interest

  • IRS account transcripts for the relevant years

  • Proof of payment, if you paid the penalties or interest

  • Your mailing address and current contact information

Step 1: Get Your IRS Account Transcripts

IRS account transcripts can help you identify whether penalties or interest were assessed or paid for a specific tax year.

Option A: Get Transcripts Online

The fastest way is usually through your IRS online account.

  1. Go to the IRS website and look for "Get Transcript" or your IRS Online Account.

  2. Sign in or create an account.

  3. Complete the identity verification process.

  4. Select the tax year you want to review.

  5. Download the Account Transcript for each year you want to check.

  6. Review the transcript for entries showing penalties, interest, assessments, adjustments, and payments.

Option B: Request Transcripts by Mail

If you do not want to access your account online, you can request transcripts by mail.

  1. Go to the IRS website and look for the transcript-by-mail request option.

  2. Enter your identifying information exactly as it appears on your tax return.

  3. Request the transcript for each year you want to review.

  4. Wait for the IRS to mail the transcript to the address on file.

Step 2: Decide Whether You May Have a Potential Claim

You may have a potential claim if:

  • Your filing or payment issue relates to the COVID disaster window of January 20, 2020, through July 10, 2023

  • The IRS charged penalties or related interest that may have fallen within that postponed period

  • You paid those amounts and want to request a refund, or they remain unpaid and you want to request abatement

In many situations, clients are reviewing 2019–2022 tax years first.

Important Caution

Only file a claim that has a reasonable basis. A claim that is overstated or unsupported may create additional problems, including potential penalties for excessive refund claims.
If you are unsure whether your claim is reasonable, you should speak with a qualified tax professional before filing.

Step 3: Prepare Form 843

Form 843 is commonly used to request a refund or abatement of certain penalties and interest.

General Tips

  • Use a separate Form 843 for each tax period if appropriate.

  • Be clear and specific.

  • Attach supporting information if it helps explain your request.

  • Keep a complete copy of everything you send.

What to Write Across the Top

At the top of the form, write:
Protective Refund Claim Pursuant to Kwong Case
If you are asking the IRS to remove unpaid amounts instead of refund paid amounts, you may adapt that language accordingly, for example:
Protective Claim for Refund/Abatement Pursuant to Kwong Case

Information to Include in Plain English

In the explanation section of Form 843, include:

  • The tax year involved

  • The type of amount at issue, such as:

    • late-filing penalty

    • late-payment penalty

    • related interest

  • The amount you are claiming, if known

  • The date paid, if you already paid it

  • A short explanation that you believe the amount may be refundable or abatable because of the COVID-19 disaster postponement rules and the Kwong case

Sample Short Explanation for Form 843

You may adapt the following:

Taxpayer files this as a protective refund/abatement claim related to the COVID-19 disaster relief period. Taxpayer believes certain penalties and/or related interest assessed for tax year [YEAR] may have been improperly charged in light of the Kwong decision and the disaster-related postponement period running from January 20, 2020 through July 10, 2023. Taxpayer requests refund and/or abatement of the applicable penalties and related interest for this period. This claim is intended to preserve the taxpayer's rights while the issue is being resolved.

Helpful Attachments

Consider attaching copies of:

  • IRS account transcript for the year

  • IRS notices showing the penalties or interest

  • Proof of payment

  • A brief summary sheet listing year, penalty type, amount, and payment date

Step 4: File the Form

After you complete Form 843:

  1. Sign and date the form.

  2. Attach any supporting documents.

  3. Make a full copy for your records.

  4. Mail the form to the appropriate IRS address shown in the Form 843 instructions.

  5. Consider using certified mail or another trackable delivery method.

Filing Deadline

For many taxpayers, the general protective claim deadline is July 10, 2026.
However, deadlines can vary depending on the facts, including when an amount was paid. If you are close to the deadline, act promptly.

Step 5: Monitor the Claim

After filing:

  • Keep proof of mailing

  • Watch for IRS correspondence

  • Save any acknowledgement or follow-up notices

  • Be prepared for delays, because paper-filed claims may take time to process

Filing a claim does not guarantee that the IRS will allow it.

Important Disclaimers

The Law May Change

The Kwong decision may be appealed or limited. Future IRS guidance, court decisions, or legislation could affect whether claims succeed.  Litigation could last for several years and you may not receive a refund or abatement.

Not Everyone Will Be Eligible

Eligibility depends on the taxpayer's facts, the years involved, the type of penalty or interest charged, when the amounts were paid, and other timing rules.

Filing Does Not Guarantee a Refund

A filed claim only asks the IRS to review the issue. The IRS may allow the claim, deny it, ask for more information, or hold it while the legal issue develops.

Claims Should Be Reasonable

Do not guess or inflate the amount claimed. Refund claims should be grounded in your records and a good-faith review of the facts.

This Is Not Personalized Advice

This webpage provides general educational information only. It is not legal, tax, or accounting advice for your particular situation.

Because of the volume of potential claims and the time-sensitive filing window, our firm is not able to assist with filing these claims.

Quick Checklist

Before mailing your claim, confirm that you have:

  • Reviewed your 2019-2022 tax years
  • Obtained your IRS account transcripts
  • Identified penalties and related interest that may be affected
  • Completed Form 843
  • Written "Protective Refund Claim Pursuant to Kwong Case" across the top
  • Included a clear explanation of the year(s), amount(s), and issue
  • Attached supporting documents, if available
  • Signed and dated the form
  • Mailed it with tracking before the applicable deadline