The IRS Just Opened Online Filing For a Refund Millions Can Claim, But You Need to Act Fast

A federal court ruling could put extra cash in your pocket, but you'll need to act quickly to file a claim. If the court ruling's decision holds, tens of millions of Americans could be owed tax refunds or abatements for penalties and fees that the IRS assessed during the pandemic, but those refunds won't be issued automatically. As the deadline to file a claim quickly approaches, the IRS has announced a new online option that may make filing a claim easier for qualifying individuals.

Here's what to know about whether you might be eligible for a refund and what you need to do before the deadline.

Why millions may be owed refunds

According to the Kwong vs. United States federal court ruling interpreting a tax code provision governing disaster-related tax filing and payment deadline postponements, the IRS should not have assessed tax penalties for late filing or payment during the period from January 20, 2020, through July 10, 2023.

That decision isn't final, and it may take the courts several years to resolve the issue, but based on the court's interpretation, the IRS may owe taxpayers refunds for the fees and penalties they were assessed during the COVID pandemic.

Who may be affected

Affected individuals may have filed or paid late on a 2019 through 2022 return and been charged failure-to-file, failure-to-pay, or estimated tax penalties. Affected taxpayers may have been charged interest that started accruing earlier than it should have, and they may have overpaid interest during the 2020 to 2023 disaster period.

The issue doesn't affect a specialized group of taxpayers, and rather may affect individuals, small businesses, large corporations, estates, and trusts. It may impact taxpayers who filed late international information returns; taxpayers may incur steep fees for filing late international information returns, even if they didn't owe any tax.

Notably, many affected taxpayers have low or moderate incomes, meaning they're less likely to have professional tax representation, so they may not learn about this issue and could miss the chance to claim a refund that they're owed.

How to file an online claim

The IRS has announced the option to file a claim online for certain individual taxpayers. Qualifying taxpayers must have an IRS Online Account, and they may submit Form 843, Claim for Refund and Request for Abatement, electronically through the IRS.gov website's Mobile-friendly forms page.

The online portal is currently only accepting Form 843 related to fully paid interest and penalties cited to the Kwong vs. United States ruling.

How to file a claim by mail

Taxpayers who don't qualify to use the online system, including businesses, individuals without an online account, or those requesting abatement on an unpaid amount, must file a claim by mail. You need to file Form 843 and write a message such as "Protective Refund Claim Pursuant to Kwong Case" across the top. Complete the form with as much detail as possible and consider mailing it via certified mail so you can prove you submitted the form in case it is lost. 

Be sure to mail the form by the claim deadline of July 10, 2026. Mail the completed form to Internal Revenue Service, 1973 N Rulon White Blvd., Ogden, UT 84201, and consider sending it via certified mail with return receipt requested to have documented proof of timely filing.

How to identify potentially eligible tax penalties

If you're unsure of whether you might qualify for a refund, review your tax transcripts for 2019 through 2022 to identify any eligible penalties. You may access your transcripts through your IRS Individual Online Account or online Business Account. Using your account, you may view, download, and print your transcripts. You may also request your transcripts by mail, but the process takes five to 10 days, meaning you may miss the July 10 deadline.

Your tax transcripts outline key information, including when you filed the return, when tax was assessed, and any penalties and interest charged. You may be able to use the transcript to determine whether you were assessed penalties and interest during the COVID-19 disaster relief period, and whether you may be owed a refund for those fees.

The deadline to file a claim

The deadline to file a claim is July 10, 2026. If you miss the deadline to file, the chance to file a claim is gone, regardless of how the situation resolves. Filing a claim helps preserve your right to a refund if the court ultimately upholds the determination that the IRS was in the wrong and must issue refunds to taxpayers.

Bottom line

With just a few days left before the deadline, now is the time to act if you suspect you may qualify for a tax refund. Filing a claim online may be the simplest and fastest route, but you may alternatively file a claim by mail. Waiting for certainty might cost you the opportunity for a refund, but filing a claim now may help preserve your rights while we wait to see how the law develops.

If you have questions about your taxes or filing a claim, promptly consult with your tax professional. They may help you understand where you stand financially and may be able to help you navigate the claim process and protect your right to a refund.

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