USA Today: Tens of millions of Americans may not realize they could be owed a IRS refund from the COVID-19 era so, the independent National Taxpayer Advocate (NTA) is sounding the alarm to let them know the deadline to claim it is fast-approaching.
“Many taxpayers affected by this issue have low and moderate incomes,” NTA said in a blog post. “These taxpayers are less likely to have professional representation and to learn about complex legal developments like this one. As a result, they face a greater risk of missing the opportunity to claim refunds to which they may be entitled.”
Potential refunds or abatement of penalties stems from a court ruling in Kwong vs. United States interpreting a tax rule that says once a federally declared disaster is in effect, tax code Section 7508A(d) mandates postponement of applicable tax deadlines for the disaster period plus 60 days. The court ruled the COVID-19 public health emergency from Jan. 20, 2020, through May 11, 2023, fell under this provision. Add in 60 days, and the new tax deadline for tax year 2019, 2020, 2021 and 2022 filings would have been July 10, 2023.
Without taxes due, the IRS likely also had no right to levy penalties and interests during that window, tax lawyers said. So, if you were charged penalties or fees, you may be owed a refund, they said.
The IRS disagrees with the ruling and the Department of Justice will probably appeal, but until then, taxpayers must make a claim to preserve their refund if it’s approved, lawyers said.
“For taxpayers dealing with financial pressures, these amounts can make a real difference,” NTA said. “But most taxpayers must act by July 10, 2026, to request their potential refunds.”
