Learn: COVID-Era IRS Refunds, Kwong v. United States, and Form 843

Plain-English guides to the November 2025 federal court ruling that may unlock refunds of pandemic-era IRS penalties and interest, the July 10, 2026 deadline for most claims, and the practical mechanics of filing Form 843. Use this page as the map of everything we publish on the topic.

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The legal background

Who may qualify

How to file

Compare your options

Quick reference

Key facts at a glance

The ruling
Kwong v. United States, 179 Fed. Cl. 382 (November 2025).
The disaster window
January 20, 2020 — July 10, 2023.
The deadline
July 10, 2026 — the IRC § 6511 deadline for most COVID-era penalty refund claims.
The filing vehicle
IRS Form 843, mailed certified. Header: "Protective Refund Claim Pursuant to Kwong Case."
The appeal status
The U.S. government has appealed Kwong to the Federal Circuit. As of the last update of this page, the appeal is pending.
The cost model
PenaltyBack: $0 upfront, percentage of recovered refund only if a refund is recovered.

Most-asked questions

What is the Kwong case about?

The November 2025 U.S. Court of Federal Claims decision that ruled IRC § 7508A(d) automatically suspended IRS filing and payment deadlines for the entire COVID-19 federal disaster period (January 20, 2020 – July 10, 2023).

Who is eligible for a Kwong-based refund?

Any taxpayer assessed IRS penalties or interest tied to a deadline that fell inside the COVID disaster window — individuals, small businesses, large corporations, partnerships, estates, trusts. International information return penalties (Forms 8938, 5471, 5472, 1099, 1095) are also potentially refundable.

What is the deadline to file?

For most COVID-era penalty assessments, the IRC § 6511 three-year refund-claim window closes on July 10, 2026.

Should I wait for the Kwong appeal before filing?

Tax practitioners are generally advising not to wait. The § 6511 deadline does not pause for the appeal. A protective claim filed now preserves the right to a refund regardless of the appeal outcome.

What is a protective claim?

A refund claim filed on Form 843 with the words "Protective Refund Claim Pursuant to Kwong Case" written across the top. Preserves the right to a refund while Kwong is on appeal.

How much could I get back?

PenaltyBack's homepage publishes ongoing averages: as of May 8, 2026, $2,383 average individual refund and $27,645 average business refund. The free eligibility check at /get-started calculates specific potential refunds.

Will the IRS issue automatic refunds?

No. The Taxpayer Advocate has explicitly stated that relief will not happen automatically for most taxpayers and recommended that taxpayers file refund claims themselves.

Do I need a lawyer?

No. A protective claim is administrative tax filing, not legal representation. Tax attorneys come into play only if the IRS denies the claim and a dispute follows.