It’s been more than three years since the end of the COVID-19 public health emergency, but there’s a new benefit from the COVID era that was still available through this Friday. To get the benefit, taxpayers must file by the end of the day on July 10.
Tens of millions of taxpayers may be eligible for tax refunds or abatements of penalties and interest that the Internal Revenue Service processed during the pandemic period from 2020 to 2023, explained the governmental Tax Advocate Service.
“This issue arises from recent court decisions, most notably Kwong v. United States, 179 Fed. Cl. 382 (Nov. 2025), interpreting a tax code provision that governs disaster-related filing and payment deadline postponements,” the service said. “IRC § 7508A(d), as it existed when the COVID-19 federal disaster was declared, provides for the automatic postponement of filing and payment deadlines during the period a federal disaster declaration is in effect, plus 60 days.”
Since the court reasoned that filing and payment deadlines were postponed for the duration of the pandemic period, “payments due anytime within that window were not late until after July 10, 2023,” and the IRS should not have assessed penalties for late filing or payment during that 3.5-year period and it should not have charged interest on those amounts.
“If that reasoning ultimately prevails, tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest assessed for returns or payments the IRS treated as late during that period,” said the Tax Advocate Service. “The potential impact may also extend to some taxpayers who missed refund opportunities for tax years 2019 through 2022.”
While the legal status of the cases is not yet totally settled, the July 10 date remains important. If the argument eventually wins out and taxpayers did not file claims by Friday, they will not get their refund.
“A protective claim can preserve a taxpayer’s right to a refund while the law remains unsettled,” said the service. “Filing a claim does not guarantee relief. But missing the deadline may permanently prevent taxpayers from receiving a refund to which they may ultimately be entitled.”
While the Taxpayer Advocate Service said that this is “not a fair result for taxpayers,” and could result in taxpayers losing out on payments they are entitled to, it remains a risk not to file a claim. AARP urged taxpayers to check their records immediately to see if they were charged penalties or interest during the COVID-19 pandemic.
