Company News

Covid Penalty Refunds – But You Must Act Quickly!

May 21, 2026

A recent post from the National Taxpayer Advocate highlights a potentially significant refund opportunity for millions of taxpayers related to COVID-era IRS penalties and interest assessments.

Based on the ongoing Kwong litigation, some taxpayers who incurred late filing, late payment, or estimated tax penalties during the COVID disaster period (2020–2023) may be entitled to refunds or abatements.

Importantly, relief is not automatic — many taxpayers may need to file a protective refund claim by July 10, 2026 to preserve their rights.

This issue could affect individuals, businesses, estates, trusts, and international information return filings.

Worth reviewing if you or your clients had IRS penalties or interest assessed during that timeframe.

Read more from the Taxpayer Advocate Service here: www.taxpayeradvocate.irs.gov/news/nta-blog/tens-of-millions-of-taxpayers-may-be-eligible-for-significant-tax-refunds/2026/04/