You Might Be Owed an IRS Refund From the Pandemic — But You Have Until July 10 to Claim It
Most people would rather forget the pandemic ever happened. But if the IRS charged you penalties or interest between early 2020 and mid-2023, it may be worth a quick look at your tax records — because you might have money coming back to you.
Here's what happened, and what you need to do before the window closes.
The court ruling that changed things
A federal court ruled last November that the COVID-19 public health emergency — which ran from January 20, 2020, through May 11, 2023 — qualified as a federally declared disaster under tax code Section 7508A(d). That provision requires tax deadlines to be pushed back for the duration of the disaster plus 60 days. Do the math, and the effective tax deadline for the 2019 through 2022 filing years shifts to July 10, 2023.
The implication, according to tax attorneys, is significant: if your tax deadlines were legally extended, then the IRS likely had no right to charge penalties and interest during that window. And if they did charge you, you may be entitled to a refund.
Who could qualify?
Any individual or business that was assessed penalties or interest by the IRS between January 20, 2020, and July 10, 2023, may have grounds to file a claim. Tax attorneys say the amounts could be especially meaningful for businesses that struggled with cash flow during the pandemic and racked up failure-to-pay penalties as a result.
The stakes are real. Western Digital filed suit against the government in February seeking a refund on nearly $21 million in interest it was charged during the pandemic period — part of a broader $53.6 million tax settlement. That's an extreme example, but it illustrates the scale of what's potentially in play.
Why July 10, 2026, matters
The statute of limitations for refund claims typically runs three years from when a return was filed, or two years from when the tax was paid, whichever is later. Because the court ruling set the effective deadline at July 10, 2023, three years from that date lands on July 10, 2026.
Miss that date and you lose the right to claim — permanently, regardless of how the IRS appeals play out.
"Millions of taxpayers could be eligible, but if people don't file claims before July 10, 2026, they lose out on the potential for a refund or abatement," said Jon Wasser, a partner at Fox Rothschild who specializes in tax issues.
How to find out if you're owed anything
Start by pulling your IRS tax account transcript. This document shows your filing history, including any penalties and interest assessed, and the dates they were charged. You can access it online through the IRS Individual Online Account portal, or request one by mail at IRS.gov or by calling 800-908-9946. Mail delivery typically takes five to ten days.
If you see penalties or interest assessed during the pandemic window, that's your signal to act.
How to file a claim
You or your tax professional can file using IRS Form 843, the standard form for refund claims and abatement requests. The key is to specify that it's a protective claim based on the Kwong v. United States decision and Section 7508A(d) of the tax code.
Filing a protective claim essentially puts the IRS on notice while the litigation plays out. You're not demanding an immediate refund — you're preserving your right to one if the courts ultimately rule in taxpayers' favor.
"You just need to put the IRS on notice now," Wasser said.
The IRS is expected to appeal the ruling, which means this could take time to fully resolve. But the filing deadline won't wait for the courts. If this applies to you, the time to act is now — not in June.