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This Friday, July 10, is the final deadline for millions of taxpayers in the United States to claim refunds from the IRS for penalties and interest that were improperly charged during the COVID-19 pandemic, reminded Telemundo 51.
Those who do not act before the end of the day will permanently lose that right.
The opportunity arises from a ruling issued on November 25, 2025, by the United States Court of Federal Claims in the case of Kwong v. United States. The court determined that the Internal Revenue Service (IRS) should not have imposed penalties for late filing or payment during the federal disaster period due to COVID-19, which spanned from January 20, 2020, to July 10, 2023.
"According to the court's reasoning, the IRS should not have imposed penalties for late filing or payment during that 3½ year period, nor should it have charged interest on those amounts," stated the National Taxpayer Advocate, an independent oversight body of the IRS.
It is estimated that dozens of millions of people may be eligible to receive refunds or reductions in penalties. However, the benefit is not automatic: each taxpayer must file a formal claim before the deadline this Friday.
The National Taxpayer Advocate, Erin M. Collins, warned in April that low- or moderate-income taxpayers are at greater risk of missing this opportunity.
"Many taxpayers affected by this issue have low or moderate incomes. These taxpayers are less likely to have professional representation or to be aware of complex legal developments like this," he noted.
The scope is broad. Those eligible include those who filed late returns and paid penalties between January 20, 2020, and July 10, 2023, those who still owe sanctions to the IRS—even if they have not paid them—and those who filed international information returns past the deadline.
Eligibility includes individuals, small businesses, large corporations, estates, and trusts.
To file a claim, taxpayers must complete the IRS Form 843 -Request for Refund and Request for Abatement- and send it exclusively by postal mail, as it cannot be submitted electronically.
Experts recommend writing the phrase "Protective Refund Claim Pursuant to Kwong Case" at the top of the form to preserve rights while the litigation is ongoing.
To complete the form, it is necessary to know the amount of fines or interest paid and the corresponding tax year. This information is available in the letters sent by the IRS or in the tax account history at IRS.gov.
Among the recoverable amounts are fines for late submission, fines for late payment, and, in some cases, the accumulated interest.
The case is still in litigation. The IRS and the Department of Justice disagree with the court's interpretation and have announced their intention to appeal the decision. The government has until July 20 to file its formal defense in the appeal.
Experts agree that taxpayers should not wait for the litigation to be resolved, as the legal deadlines for claims do not pause. Filing a protective claim this Friday does not guarantee immediate receipt of funds, but it does preserve the right to obtain them if the courts ultimately uphold the ruling.
"For taxpayers facing financial pressures, these amounts can make a real difference. However, most need to act before July 10, 2026, to apply for their potential refunds," Collins concluded.
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