A federal court has ruled that IRS penalties and interest charged between January 2020 and July 2023 violated a mandatory law Congress passed in 2019. If you paid during that window, you may have a right to recover what you paid.
The statute of limitations closes July 10, 2026. After that date, the right to claim a refund is permanently gone.
Start Free Review →In 2019, Congress amended the tax code to require automatic, mandatory postponement of all federal tax deadlines whenever a national disaster is declared. The key word was “shall” — not “may.”
When COVID-19 was declared a national disaster on January 20, 2020, that postponement was legally triggered — covering every taxpayer in the United States through July 10, 2023. The IRS largely ignored it and kept charging penalties.
The U.S. Court of Federal Claims ruled that those assessments were improper under the plain language of the statute. Taxpayers who paid penalties or interest during that window have a right to a refund.
The IRS issued limited relief through administrative notices — but those notices fell far short of what the courts say the law required.
| Relief Source | Tax Years | Covers Interest? | Dollar Cap? | Filing Deadline Required? |
|---|---|---|---|---|
| IRS Notice 2022-36 | 2019, 2020 | ✗ No | None | Must file by 9/30/22 |
| IRS Notice 2024-7 | 2020, 2021 | ✗ No | <$100K assessed | Automatic |
| Kwong v. United States ⚖️ | 2020–2023 | ✓ Yes | No cap | File Form 843 by 7/10/26 |
If any of these were assessed between January 20, 2020 and July 10, 2023 — they may be fully recoverable.
Failure-to-file, failure-to-pay, and estimated tax underpayment penalties assessed on individual returns during the disaster period.
Penalties on Forms 1120, 1120-S, and 1065. Applies to S-corps, C-corps, partnerships — including large corporations.
Unlike the IRS notices, Kwong covers interest under §6601 — often a larger amount than the penalty itself.
$10,000–$25,000 flat penalties per form on Forms 5471, 5472, and 3520/3520-A — often assessed even when no tax was owed.
Businesses that amended returns to claim the Employee Retention Credit were often charged underpayment interest that should not have accrued.
If an IRS audit resulted in an assessment paid under protest during the disaster window, the Kwong ruling may extend your time to challenge it.
From a quiet 2019 law change to a landmark court ruling — here’s how this happened.
The statute of limitations under IRC §6511(a) runs exactly three years from the Kwong legal deadline. This is not a soft deadline — once it passes, the IRS is legally barred from issuing refunds.
From first contact to refund in hand — we handle every step.
We review your tax history and identify every potentially recoverable penalty and interest charge from the 2020–2023 disaster window.
Our team pulls your IRS account transcripts to document each assessment, calculate your recovery amount, and build your claim.
We file Form 843 Protective Refund Claims before the July 10, 2026 deadline, locking in your legal position for each applicable tax period.
If Kwong is upheld on appeal, we handle all IRS communications and negotiations until your refund is issued — plus any interest owed on the refund itself.
100+ member team of licensed tax attorneys and CPAs — the right combination for both the legal claim and post-refund tax planning.
Founded in 2001. We work directly with the IRS, federal courts, and appeals offices every day. This is not new territory for us.
Recognized by Super Lawyers, the Oklahoma City Chamber of Commerce, and the Journal Record. Trusted by businesses nationwide.
We review your situation at no charge. You’ll know exactly what you’re owed before you make any decisions.
A Polston Tax specialist will follow up within one business day to review your account and calculate your potential refund.
Thank you. A Polston Tax specialist will contact you within one business day to review your account transcripts and walk you through your refund options.
Questions? Call 844-841-9857
This page is for informational purposes only and does not constitute legal or tax advice. The Kwong v. United States decision is currently subject to appeal. Filing a protective claim preserves your rights pending final resolution.