A recent court ruling may open the door for millions of Americans to receive tax refunds, as it states that taxpayers should not incur late fees during the COVID-19 pandemic.
<p According to Section 7508A(d) of the Tax Code, deadlines for tax filings must be extended for both the duration of a federally declared disaster and an additional 60 days.
In a decision last November, the U.S. Court of Federal Claims broadened this interpretation in *Kwon v. United States*, asserting that the federal tax deadline should have been pushed back an extra 60 days—meaning from January 20, 2020, to May 11, 2023, during the pandemic.
Essentially, this implies that the tax submission deadlines for the years 2019 through 2022 should have been extended to July 10, 2023. Therefore, those who filed taxes before this date and faced penalties may be eligible for refunds.
While the IRS is likely to contest this ruling, taxpayers have a limited window to request refunds. So, it’s best to review your past tax returns and see if you qualify. More information on the filing process can be found below.
Who Can Get a Refund?
Individuals and businesses that filed tax returns late and were penalized between January 20, 2020, and July 10, 2023, may be eligible for refunds, as noted in a report.
For instance, a company named Western Digital has filed a lawsuit against the government seeking a partial refund of $53.6 million in taxes paid in August 2023, arguing it shouldn’t have been charged nearly $21 million in interest during this emergency period.
What’s the Deadline for Refund Applications?
The deadline to file for a tax refund is set for July 10, 2026.
Typically, there’s a three-year statute of limitations to claim refunds, or two years from when the tax was paid, depending on which is longer.
As mentioned, a November ruling indicated the tax deadline should have been moved to July 10, 2023, thereby pushing the refund application deadline to July 10, 2026.
How to File for a Refund
To check eligibility for a refund, taxpayers should review their tax records for any penalties applied by the IRS during the emergency period or consult a tax advisor for assistance.
Tax returns can be accessed through the IRS website, where copies can also be requested by mail or by calling IRS Telephone Services at 800-908-9946.
Filers can utilize their tax returns to submit a relief claim, or they may have their advisor do it on their behalf.
Importantly, when making the claim, taxpayers or their advisors have to specify that it’s related to the *Kwon v. United States* ruling, ensuring that the refund request is paused while the appeals process unfolds.
