💵 Millions of Americans May Be Owed a Tax Refund From COVID

💵 Millions of Americans May Be Owed a Tax Refund From COVID — Here’s How to Get It

Updated March 17, 2026

📌 What’s Going On?

A recent federal court decision interpreting Section 7508A of the U.S. tax code may allow some taxpayers and businesses to recover money paid to the Internal Revenue Service (IRS) in penalties or interest during the COVID‑19 disaster period — even if those charges were already paid. :contentReference[oaicite:0]{index=0}

This isn’t a new stimulus payment like Economic Impact Payments from early in the pandemic; instead, it’s a potential refund tied to how IRS deadlines were interpreted during the crisis and extends to penalties and interest charged between early 2020 and mid‑2023. :contentReference[oaicite:1]{index=1}

🧾 Why This Matters

The U.S. Court of Federal Claims in Kwong v. United States ruled that federally declared disaster relief suspensions on IRS tax deadlines — including filing and payment deadlines — may have lasted longer than previously recognized. As a result, penalties or interest assessed during that extended period may not have been legally owed, meaning taxpayers could be due a refund or reduction. :contentReference[oaicite:2]{index=2}

Experts estimate that the IRS has roughly $2.2 billion in automatic refunds already authorized tied to COVID‑era late filing and payment penalties, and a court interpretation could open the door for *even more refunds*. :contentReference[oaicite:3]{index=3}

👥 Who Might Be Eligible?

You might qualify if you:

• Paid IRS penalties for late filing or late payment between early 2020 and July 10, 2023. :contentReference[oaicite:4]{index=4}
• Were charged interest associated with those penalties. :contentReference[oaicite:5]{index=5}
• Filed federal tax returns in those years and made payments or had assessments. :contentReference[oaicite:6]{index=6}

Individuals and businesses can both potentially qualify — though this is distinct from regular refunds due to overpaid tax. It’s focused specifically on *penalties and interest* during the pandemic period. :contentReference[oaicite:7]{index=7}

⏰ Critical Deadline: Act Before July 10, 2026

Tax professionals say that taxpayers interested in claiming these refunds generally have until July 10, 2026 — three years after the extended deadline interpreted by the court — to file a claim with the IRS. Miss that date, and you may lose the opportunity even if you qualify. :contentReference[oaicite:8]{index=8}

📄 How to File a Claim

To pursue a potential refund:

1. Review your IRS account transcript to identify any penalties or interest charged during the pandemic period. :contentReference[oaicite:9]{index=9}
2. If penalties or interest were charged, prepare a claim explaining why those charges are now objectionable under the recent tax code interpretation. :contentReference[oaicite:10]{index=10}
3. File IRS Form 843 (“Claim for Refund and Request for Abatement”) with the agency. :contentReference[oaicite:11]{index=11}
4. Consider consulting a tax professional if the situation is complex. :contentReference[oaicite:12]{index=12}

Filing Form 843 allows you to request a refund of penalty and interest amounts paid that you believe were improperly assessed during the extended COVID deadline period. :contentReference[oaicite:13]{index=13}

💡 Important Notes

- This situation is not guaranteed; the IRS and federal government could appeal the ruling over time, introducing uncertainty. :contentReference[oaicite:14]{index=14} - This refund is separate from regular income tax refunds or stimulus credits. - Always verify information using official IRS guidance or consult a tax professional.

Stay updated and act promptly to check your eligibility and file a claim if you believe you qualify for a refund related to COVID‑era tax penalties and interest.