2022 Tax Year COVID Penalty Refund

Why 2022 matters specifically

2022 returns were due April 18, 2023. The IRS did not grant a general nationwide postponement — relief was limited to specific FEMA-declared regions, including California flooding and Mississippi tornadoes. Notice 2024-07 provided automatic failure-to-pay penalty relief for back-tax balances tied to 2020 and 2021, but did not extend the same automatic relief to 2022.

The COVID-19 federally declared disaster window broadly ran from January 20, 2020 through July 10, 2023, based on the May 11, 2023 end of the federal public health emergency plus the IRC § 7508A(d) statutory tail. The November 2025 Court of Federal Claims decision in Kwong v. United States, 179 Fed. Cl. 382, read § 7508A(d) to require deadline suspension across that period. For 2022 returns, the relevant question is whether the 23C date of each penalty assessment falls on or before July 10, 2023.

The Kwong ruling is currently being appealed; eligibility is not guaranteed. A protective Form 843 filed before the relevant § 6511 deadline preserves the claim.

2022 penalties that may qualify for refund

• Failure-to-file (TC 166 / TC 160) under IRC § 6651(a)(1) — if the 23C date is on or before July 10, 2023.
• Failure-to-pay (TC 276 / TC 270) under IRC § 6651(a)(2) — same date condition.
• Estimated-tax (TC 170 / TC 176) under IRC § 6654 — commonly assessed at filing.
• Information-return penalties (TC 240) under §§ 6721 and 6722.
• Underpayment interest (TC 196 / TC 340) accrued during the in-window period.

Assessments dated after July 10, 2023 are not Kwong-eligible under the current reading.

Filing deadline for 2022 refund claims

IRC § 6511 requires the refund claim be filed within (a) 3 years of original return filing or (b) 2 years from the date the tax was paid, whichever is later. For 2022 returns:

• A 2022 Form 1040 filed on April 18, 2023 may have a 3-year window that closes on or around April 18, 2026 — close to the July 10, 2026 disaster-window deadline.
• 2022 returns filed later have 3-year windows closing in 2026, 2027, or beyond.
• The 2-year-from-payment window may extend the deadline if you paid the penalty later.
• The § 7508A(d) suspension theory in Kwong may further extend these windows for in-window assessments.

What to look for on your 2022 transcript

Pull your 2022 transcript — see our transcript guide. Each penalty entry shows a 23C date in the date column. Look for:

• TC 150 — 2022 return assessment.
• TC 166 / TC 160 with a 23C date on or before July 10, 2023 — § 6651(a)(1) candidate.
• TC 276 / TC 270 with a 23C date on or before July 10, 2023.
• TC 170 / TC 176 — § 6654 estimated-tax penalty.
• TC 240 — miscellaneous penalty.
• TC 670 — payment.

Carefully separate in-window and out-of-window assessments — only the in-window entries are Kwong candidates.

Worked example: a 2022 filer hit by a balance-due penalty before July 10, 2023

Consider a small business owner who filed a 2022 Form 1040 on March 12, 2023 with a $32,000 balance due and paid it on April 17, 2023, one day before the deadline. Despite the timely filing, the IRS account transcript shows a TC 276 failure-to-pay penalty of $640 with a 23C date of June 5, 2023 — tied to a brief mismatch between estimated-tax credits the taxpayer claimed and what the IRS posted. The taxpayer paid the $640 in July 2023.

The 23C date (June 5, 2023) is inside the disaster window. The 3-year-from-filing window closes around March 12, 2026, and the 2-year-from-payment window measured from July 2023 closes around July 2025. The § 7508A(d) suspension under Kwong may extend further. A protective Form 843 referencing IRC § 7508A(d), Kwong v. United States, 179 Fed. Cl. 382 (Nov. 2025), and the TC 276 entry preserves the $640 claim.

Common 2022 scenarios

Caught in IRS processing backlog

Some 2022 returns timely filed by April 18, 2023 were nonetheless flagged late because of IRS posting delays. If a penalty assessment dates inside the window, the standard Kwong analysis applies. Underlying timely-filing arguments may also support reasonable-cause abatement — a separate theory the protective claim may preserve.

FEMA-declared disaster region

Taxpayers in 2022 FEMA-declared areas received their own postponements. Penalty assessments tied to those returns may also qualify under § 7508A(d) on the same Kwong reasoning, particularly for 23C dates before July 10, 2023.

Assessment dated after July 10, 2023

Many 2022 penalties were assessed in late 2023 or 2024 — outside the COVID-19 disaster window under the Kwong reading. These are not Kwong candidates, though they may still qualify for reasonable-cause or first-time-abatement relief on other grounds.

2022 estimated-tax penalties under § 6654

Many 2022 § 6654 estimated-tax penalties are computed and assessed at the time the return is filed. If the 23C date sits on or before July 10, 2023, the penalty may be a Kwong candidate. If only some quarterly installments fell inside the suspended window, the protective claim may need to identify the in-window portion specifically.

Carry-forward balance triggered a 2022 late-payment assessment

Where prior-year balances rolled into 2022 and triggered a fresh § 6651(a)(2) assessment dated before July 10, 2023, the in-window assessment is a Kwong candidate even if the underlying liability originated in an earlier year. The Kwong analysis turns on the 23C date of the assessment, not the tax year of the underlying balance.

How PenaltyBack handles 2022 claims

We pull your IRS account transcript, segregate in-window and out-of-window 2022 assessments, and draft a Form 843 protective claim that references IRC § 7508A(d), Kwong v. United States, 179 Fed. Cl. 382 (Nov. 2025), and the specific transaction codes inside the window. We file under our authorized representative status. Our work is no-win, no-fee. The Kwong appeal is pending; the protective claim preserves your right regardless.

Frequently asked questions about 2022 claims

The federal emergency declaration ended in May 2023 — does Kwong still apply to 2022 returns?

The disaster window includes the statutory tail under § 7508A(d), broadly running through July 10, 2023. 2022 assessments with 23C dates on or before that date may qualify.

I was in a FEMA-declared disaster area in 2022 — does that change the Kwong analysis?

Possibly — FEMA declarations create their own § 7508A windows. The Kwong reasoning may apply on top of any FEMA-based postponement.

What is the latest I can file a Form 843 for my 2022 penalty?

It depends on filing and payment dates. Some 3-year windows close around April 2026; others later. File the protective claim now to lock in your position before the July 10, 2026 deadline.

My 2022 return was caught in IRS processing delays. Can Kwong help?

If the resulting penalty has a 23C date on or before July 10, 2023, yes. If the assessment is later, Kwong does not apply, but reasonable-cause abatement may.

Notice 2024-07 did not cover 2022 — what is my recourse?

For in-window 2022 assessments, the Kwong-based protective claim is the leading theory. For out-of-window assessments, reasonable-cause and first-time-abatement remain available on their own terms, and these can be claimed alongside or independent of any Kwong-based filing.

My 2022 employment-tax (Form 941) penalties from Q1 and Q2 2023 — in or out?

Q1 2023 Form 941 was due April 30, 2023 — inside the window. Q2 2023 Form 941 was due July 31, 2023 — outside the window. The cutoff is sharp and turns on the 23C date of each penalty entry on the 941 transcript, not the tax year of the underlying employment-tax liability.

Related

For background: Kwong v. United States, explained. For transcript guidance: How to read your transcript. For Form 843 wording: Form 843 protective claim wording. For the deadline: The IRS may owe you money from COVID — file by July 10, 2026.