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IRS Penalty Refunds and COVID-Era Relief: July 10, 2026 Deadline Approaching
Update: Court Ruling Finalized — Refund Claims Must Be Filed by July 10, 2026
June 2026 Update
Since this article was originally published
https://pivotalaccountant.com/millions-of-taxpayers-may-be-eligible-for-irs-refunds-or-penalty-relief/
A federal court ruling in Kwong v. United States has confirmed that certain late-filing and late-payment penalties, along with related interest assessed during the COVID-19 emergency period (2020–2023), may have been improperly charged by the IRS.
As a result, some businesses and taxpayers who paid these penalties and interest may be entitled to a refund.
However, refunds are not automatic. An affirmative claim must be filed with the IRS, and the deadline to submit a claim is July 10, 2026.
To leave adequate time to review records, prepare the necessary documentation, and file a claim before the IRS deadline, Pivotal Forensic Accounting & Audits requests that clients contact our office no later than June 27, 2026, if they would like us to evaluate their eligibility and prepare a claim on their behalf.
If you believe you paid late-filing penalties, late-payment penalties, or interest associated with those penalties during the COVID period, we encourage you to contact us as soon as possible. Waiting until the IRS deadline may not provide enough time to properly review your records and submit a claim.
This update is based on the federal court decision in Kwong v. United States and subsequent guidance regarding the July 10, 2026 claim deadline. Eligibility for relief depends on the specific facts and circumstances of each taxpayer’s account.
Pivotal Forensic Accounting & Audits
2602 N Proctor Street, #201
Tacoma, WA 98407
