You may be able to recover IRS penalties and interest you were assessed during the COVID disaster period, covering January 20, 2020 through July 10, 2023.
ABOUT THE CASE
A recent court case, Kwong v. United States, found that certain federal tax deadlines were automatically extended during the COVID disaster period. If you were assessed IRS penalties or interest during that time, you may be eligible to request a refund or abatement.
Important caveat: this issue is not settled. The IRS disagrees with this court decision and is expected to continue challenging the case on appeal. Refunds are not guaranteed.
Because of this uncertainty, affected taxpayers may want to file a protective claim by July 10, 2026. Filing now preserves your rights if the courts ultimately uphold the ruling. Waiting until the issue is resolved could permanently close the door.
DOES THIS APPLY TO YOU?
If you were assessed IRS penalties or interest during the COVID period, this may apply to you.
Current LFCO clients, please reach out to your Lopata team member so we can determine next steps.
