Form 1040-X (Amended Return) COVID Penalty Refund

Form 1040-X amended returns filed during the Jan 20, 2020 – July 10, 2023 COVID-19 disaster period that triggered penalty or interest assessments may qualify for refunds under the Kwong reasoning. File Form 843 by July 10, 2026. The Kwong ruling is being appealed; refund eligibility is not guaranteed.

Who qualifies

If you filed a Form 1040-X amended return between Jan 20, 2020 and July 10, 2023 — either to correct an earlier-filed Form 1040 or to claim missed credits — and the IRS subsequently assessed late-payment penalties or interest tied to that amendment, you may be eligible. The same Kwong analysis applies: filing and payment deadlines were automatically suspended during the disaster window, so penalties tied to that window may not have been legally valid.

  • Your IRS account transcript shows a penalty or interest assessment that traces back to a 1040-X you filed during the disaster window.
  • The amendment increased your tax liability and the IRS assessed a late-payment penalty on the additional tax.
  • Interest was charged on the amended balance for any period inside the Jan 20, 2020 – July 10, 2023 window.

How much could I get back?

Refund amounts depend on the size of the original assessment and how long interest accrued. 1040-X-related penalty refunds tend to track close to standard 1040 averages. Refund eligibility and amounts cannot be guaranteed.

Why this specifically

Many taxpayers don't realize that an amended return triggers its own assessment date for penalty purposes. If your amendment landed during the disaster window, the same suspension reasoning that applies to original returns may apply to your amendment too. This is an under-targeted segment — most taxpayers think only about original returns when checking eligibility.

FAQ

Does the amendment year or the original-return year matter?

The penalty assessment date is what matters most. If the IRS assessed penalties on your account during the Jan 20, 2020 – July 10, 2023 window — regardless of what tax year the underlying liability is for — the Kwong reasoning may apply.

I filed 1040-X to claim a credit and got a refund, not a penalty. Does this apply?

No. This page covers amended returns where the IRS charged you a penalty or interest. If your amendment resulted in a refund only, there is nothing to claim back from this opportunity (your refund was already issued).

Should I file Form 843 or another 1040-X?

Form 843 — that's the IRS form specifically for refund or abatement of penalties and interest. A second 1040-X would not address the penalty assessment.