Millions of Taxpayers May Be Eligible for IRS Refunds or Penalty Relief

A recent notice from the IRS’ National Taxpayer Advocate indicates that tens of millions of taxpayers may be entitled to refunds or reduced penalties and interest related to the COVID-19 emergency period.

Source: https://www.fox13seattle.com/news/covid-era-irs-refunds

During the federal disaster declaration—from January 20, 2020 through May 11, 2023—filing and payment deadlines were effectively postponed. However, many taxpayers were still assessed penalties and interest during that time.

Recent court decisions, including the Kwong case, clarified that these extended deadlines may mean those penalties and interest should not have been applied at all.

What This Means for Taxpayers

If you filed or paid taxes during the COVID period, you may be eligible for relief, including:

• Refunds of penalties for late filing or late payment
• Removal or adjustment of interest charges
• Potential additional interest owed to you on overpayments

However, this relief is not automatic.

Important Deadline

To claim a refund or adjustment, taxpayers will likely need to file Form 843 (Claim for Refund and Request for Abatement).

📅 Deadline to file: July 10, 2026

At this time, the IRS requires these claims to be submitted by paper filing, and it is strongly recommended to send them via certified mail to ensure proof of submission.

Why This Matters

Because this situation stems from a unique, extended disaster declaration, many taxpayers—and even tax professionals—did not anticipate how long deadlines would be postponed or how it would impact penalties and interest.

Without further action from the IRS or Congress, it will be up to individual taxpayers to identify eligibility and file in time. Those who are unaware of this opportunity risk missing out on funds they may be entitled to recover.

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If you believe you may qualify for a refund or have received an adjustment related to your prior tax filings, it’s important to have your situation reviewed.

Pivotal Forensic Accounting & Audits is available to help you evaluate your eligibility, prepare the necessary filings, and ensure everything is handled correctly.

📞 Phone: (253) 752-3920
📧 Email: contactus@pivotalaccountant.com

Reach out today to schedule a review and make sure you don’t leave money on the table.