Peter Navarro, the White House Commerce and Manufacturing Advisor, recently discussed President Trump’s significant increase in tax refunds during an interview. Meanwhile, the IRS Taxpayer Advocate has announced that a considerable number of U.S. taxpayers might be eligible for refunds or reduced penalties due to delays in filing deadlines brought on by the COVID-19 pandemic.
Tens of millions of individuals could potentially benefit from refunds or abated penalties and interest, as noted in a recent statement from the National Taxpayer Advocate. This situation stems from court decisions—including the Kwon ruling—which determined that the tax code allowed for extended deadlines for filing and payment from January 20, 2020, until May 11, 2023.
It’s important to note that while the Department of Justice might appeal this decision, the relief it provides is not automatic. Affected taxpayers will need to file their refund claims by July 10, 2026, if they want to take advantage of this ruling.
Experts recommend that individuals who missed the April 15 tax deadline should take steps to file their claims. The tax advocacy group pointed out that most taxpayers and even many tax professionals didn’t see this kind of decision coming, as disasters typically don’t extend for such a long duration. They also highlighted that if the Kwon decision stands, affected taxpayers can seek refunds, but they must be proactive to meet that deadline.
Taxpayer advocates emphasized it’s crucial for the IRS or Congress to act to ensure all eligible taxpayers get what they deserve. They also informed that the average tax refund amount has risen nearly 11% compared to last year, according to IRS data.
Furthermore, the IRS is requiring that refund claims be submitted as paper filings, which could lead to delays in acknowledgment of receipt. Therefore, it’s advisable for taxpayers to send their forms using certified mail to ensure proof of timely submission.
Advocates suggested that the IRS comply with the Taxpayer Bill of Rights by making the situation widely known, extending the filing deadline for refund claims by six months, and developing an electronic filing portal to ease the process.
They also called upon tax professionals to keep their clients informed about these developments, and for lawmakers and media to ensure the public is aware of this important issue.
