IRS COVID Tax Refund Deadline July 10, 2026: Here’s Who Qualifies and How to Claim It
The deadline to claim an IRS COVID-era penalty refund is Friday, July 10, 2026. Here's who qualifies and how to file ,Here's who qualifies.
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IRS COVID Tax Refund: Taxpayers penalized by the IRS during the COVID-19 pandemic have until Friday, July 10, 2026, to file a claim for a refund or abatement of those penalties. The deadline stems from a federal court ruling, Kwong v. U.S., which found that pandemic-era emergency laws automatically postponed IRS deadlines between January 20, 2020, and July 11, 2023 — meaning the agency may owe penalty refunds to tens of millions of affected taxpayers.
Key Takeaways
- The filing deadline is Friday, July 10, 2026 — just two days away
- The IRS assessed more than 120 million penalties during the eligible window
- Eligible penalties: late filing, late payment, or missed estimated tax payments between January 20, 2020, and July 11, 2023
- The IRS added a new online filing option this month for Form 843
- The Treasury Department is actively contesting the underlying court ruling, but tax professionals still recommend filing now to preserve the claim
- Filing does not guarantee payment — it preserves your right to a refund while the legal case continues
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What’s Happening
Tens of millions of taxpayers who were penalized by the IRS during the coronavirus pandemic have until this Friday to file a claim for a refund or abatement of those penalties. The window applies to penalties assessed for late filing, late payment, or missed estimated tax payments between January 20, 2020, and July 11, 2023 — a period during which the IRS issued more than 120 million individual penalty assessments.
The deadline exists because of a federal court decision in a case known as Kwong v. United States. The court found that COVID-19 emergency declarations automatically extended certain IRS filing and payment deadlines during the pandemic, which means many of the penalties the IRS charged during that window may have been assessed incorrectly. The case is still being litigated, but the refund-claim deadline is moving forward regardless.
Adding to the urgency, the IRS introduced a new electronic filing option this month, allowing eligible taxpayers with an existing IRS Online Account to submit the refund claim form digitally for the first time.
The Kwong Ruling, Explained
To understand why this deadline exists at all, it helps to understand what the underlying case actually decided.
During the early months of the pandemic, the federal government issued emergency declarations that paused a range of regulatory deadlines across multiple agencies. The Kwong case centered on whether those same emergency provisions applied to IRS penalty deadlines — specifically, whether the clock on taxpayers’ filing and payment obligations was legally frozen while the emergency declarations were in effect.
The court sided with taxpayers, ruling that the emergency laws did automatically postpone the relevant deadlines. Practically, that means many penalties the IRS charged for “late” filing or payment during 2020 through mid-2023 may not have been late at all under the law as the court now interprets it — which is why the agency may owe refunds.
The Treasury Department disagrees with that interpretation. Ken Kies, assistant secretary at the Treasury Department, said the administration believes the ruling misreads the statute’s plain language and confirmed the government will continue defending its original position in court.
Why File Now If the Case Is Still Being Fought?
This is the part causing the most confusion, and it’s the reason tax professionals are urging taxpayers not to wait for the legal dispute to resolve itself.
Alyssa Maloof Whatley, a director at Frost Law, a tax firm with offices across the country, explained the core logic: filing a claim now protects a taxpayer’s right to the money regardless of which way the appeal eventually goes. If the ruling survives appellate review, taxpayers who filed on time collect their refunds. If it’s overturned, taxpayers who filed on time simply don’t collect — but they haven’t lost anything by having tried. Taxpayers who miss Friday’s deadline, by contrast, may permanently forfeit the claim even if the ruling is later upheld.
In effect, filing by July 10 costs nothing and preserves the option either way.
Who Qualifies
Taxpayers may be eligible for a refund or penalty abatement if any of the following apply:
- They filed a tax return late at any point between January 20, 2020, and July 11, 2023
- They paid a penalty for filing or paying late during that same window
- They still owe unpaid IRS penalties from that period
- They filed a late international information return during the eligible window
Before filing, the National Taxpayer Advocate — an independent watchdog office within the IRS — recommends reviewing IRS tax account transcripts through an online account to confirm exactly which penalties were assessed during the eligible period.
How to File
Taxpayers have two options, depending on their situation:
Online (new this month): Individual taxpayers with an existing IRS Online Account can now submit Form 843 electronically for claims involving penalties and interest that have already been fully paid. The tool is available on the “Mobile-friendly forms” page of IRS.gov, and filers will need to select the appropriate reason codes tied to the Kwong ruling when prompted.
By mail: Business taxpayers, and individuals who prefer not to file online, can mail a paper Form 843 to the IRS service center where they would normally file their current-year tax return. Form 843 is available directly on IRS.gov.
Who This Deadline Affects Most
The National Taxpayer Advocate’s office has flagged a specific concern: many of the taxpayers eligible for these refunds are lower- and moderate-income filers who are less likely to have professional tax representation and less likely to have heard about a court ruling this technical in the first place. That combination raises the risk that eligible taxpayers simply miss the window without ever learning they had a claim.
If a household or small business went through a late filing or late payment situation at any point between early 2020 and mid-2023 — even a partial or already-resolved one — it’s worth checking IRS transcripts before Friday, rather than assuming the issue is closed.
What Happens After Friday
Filing a claim by the deadline does not mean a refund arrives immediately. Because the underlying case remains under litigation, the IRS is expected to hold or process claims according to how the appeal unfolds. Taxpayers who file on time are simply preserving their place in line for a refund that depends on the case’s outcome, not receiving an immediate payment.
This article will be updated if the Treasury Department’s appeal produces a ruling, or if the IRS extends or modifies the claims process.
Frequently Asked Questions
What is the deadline to claim a COVID-era IRS penalty refund? Most taxpayers must file their claim by Friday, July 10, 2026, to preserve their right to a refund or penalty abatement tied to the Kwong v. United States ruling.
What penalties are covered by this claim window? Penalties for late filing, late payment, or missed estimated tax payments assessed between January 20, 2020, and July 11, 2023 are covered, along with late international information return penalties from the same period.
Do I need a tax professional to file this claim? No. Eligible individuals with an IRS Online Account can file Form 843 electronically without a preparer, though the National Taxpayer Advocate notes that taxpayers without professional help are statistically less likely to know about this deadline at all.
Will I definitely get my money back if I file by Friday? Not immediately. The underlying court case is still being litigated, and the Treasury Department is actively contesting the ruling. Filing by the deadline preserves your claim; it does not guarantee an immediate refund.
What if I already paid off the penalty years ago? You may still be eligible. The claim window covers penalties that were paid in full as well as penalties still owed, as long as they were assessed during the January 2020 to July 2023 window.
How do I check which penalties I was charged during that period? The National Taxpayer Advocate recommends reviewing your official IRS tax account transcripts through your IRS Online Account before filing, to confirm exactly which penalty assessments apply.
Can businesses file this claim too? Yes. Business taxpayers are eligible but must file a paper Form 843 by mail rather than using the new online option, which is currently limited to individual filers with an IRS Online Account.
Official Sources
- IRS.gov — Filing Form 843 for Claims Citing Kwong v. United States: https://www.irs.gov/forms-pubs/filing-form-843-for-claims-citing-kwong-v-united-states
- Taxpayer Advocate Service (IRS) — Official Guidance Blog: https://www.taxpayeradvocate.irs.gov/news/nta-blog/act-on-or-before-july-10-2026-to-protect-potential-covid-19-disaster-relief-refund-claims/2026/07/
For the most accurate and current filing guidance, please consult the official IRS resources listed above or a licensed tax professional.
Editorial Note
TruePickUS is covering this story ahead of the Friday deadline because the population most affected — lower- and moderate-income taxpayers without professional representation — is also the population least likely to encounter this news through traditional channels in time to act on it.
Disclaimer: This report is based on official IRS guidance, Taxpayer Advocate Service publications, and reporting from named tax professionals. It is intended for general informational purposes only and does not constitute tax or legal advice. Readers should consult a qualified tax professional or the official IRS resources above before filing a claim.
