A recent decision of the U.S. Court of Federal Claims in Kwong v. United States has raised the possibility that some taxpayers may be entitled to refunds or abatements of certain penalties and interest assessed in connection with filing or payment deadlines during the COVID-19 federally declared disaster period.

Kwong v. United States

The decision interprets IRC § 7508A(d), as in effect during the COVID-19 disaster period, to require postponement of certain tax deadlines from January 20, 2020, through July 10, 2023. Commentators have noted that this interpretation may support claims for refund or abatement of certain penalties and interest computed by reference to deadlines falling within that period. However, the law remains unsettled, and the government has appealed the decision.

Because refund limitation periods under IRC § 6511 are highly fact-specific and generally depend on when the return was filed and when the tax, penalty, or interest was paid, taxpayers who may be affected should promptly consider preserving their rights. Many commentators have identified July 10, 2026, as an important protective-claim date for potential COVID-period claims, although the actual deadline may vary depending on the taxpayer’s facts.

Next steps

We will review your 2019 through 2022 tax filings to determine whether this development may create a refund or abatement opportunity. If so, we may recommend filing a protective claim on Form 843, Claim for Refund and Request for Abatement, for the applicable year or years. Any such claim would be provided to you for signature along with filing instructions.

Contact our RRBB advisors if you have any questions or concerns.