Key Takeaways
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Kwong v. United States
In Kwong v. United States, 179 Fed. Cl. 382 (2025), the Court of Federal Claims held that certain tax deadlines were postponed longer than the IRS had determined under Internal Revenue Code Section 7508A(d) and the COVID-19 federal disaster declaration.
Under the court’s reasoning, certain COVID-era periods could be disregarded when determining filing deadlines, potentially extending time limits for refund claims related to penalties and interest. The IRS disagrees with the decision and has appealed.
Taxpayers who paid federal penalties or interest tied to COVID-era filing or payment deadlines should review their IRS accounts and consider whether a protective claim is needed by July 10, 2026, to preserve potential refund rights while the case continues.
Online filing option now available for individual taxpayers
The IRS recently added an online option for individual taxpayers to electronically file Form 843, Claim for Refund and Request for Abatement, for Kwong-related protective refund claims on or before the July 10, 2026, deadline.
The online option is available only to individuals filing claims related to fully paid interest and penalties connected to Kwong. Individual taxpayers must have an IRS Online Account and must write “Kwong vs. United States” across the top of the form.
Businesses must continue to file Form 843 on paper. Individuals may also still choose to file a paper Form 843. A recent notice from the IRS has indicated for taxpayers that a filing a claim related to fully paid interest and penalties that cites Kwong v United States to mail the form to:
1973 N Rulon White Blvd.
Ogden, UT 84201
Review COVID-era IRS charges before July 10 deadline
Kwong does not guarantee a refund for every taxpayer that paid penalties or interest during the pandemic. It does, however, create a time-sensitive reason to review COVID-era IRS charges and preserve refund rights before the statute of limitations closes.
The new online filing option may make the process more accessible for individual taxpayers, but eligibility is limited. Businesses and other taxpayers that do not qualify for the online process should continue to follow the paper filing process.
Taxpayers should review their IRS accounts, identify any potential refund opportunities, and consider filing a protective claim by July 10, 2026.
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Author
TODD BENSLEY
Partner, UHY LLP Managing Director, UHY Advisors
Todd Bensley has nearly 30 years of experience in public accounting and is a highly regarded tax subject matter expert for his knowledge of tax planning and compliance issues.