The Biggest News Stories Of 2026 - Page 8
Updated May 7, 2026, 12:00 PM
Millions of taxpayers who were hit with IRS penalties during the COVID-19 pandemic could still qualify for refunds or relief, but time is running out to act.
A federal court ruling in the case Kwong v. U.S. determined that emergency laws tied to the pandemic extended certain tax filing deadlines, meaning some penalties issued by the IRS may not have been valid. As a result, taxpayers who paid penalties for filing late, paying taxes late, or missing estimated tax payments between Jan. 20, 2020, and July 11, 2023, could be eligible for refunds or penalty abatements.
The IRS reportedly issued more than 120 million penalties during that period, affecting tens of millions of taxpayers nationwide. However, the relief is not automatic. Most people must file a claim by July 10 in order to preserve their rights to receive any potential refund.
The National Taxpayer Advocate, an independent watchdog organization within the IRS, is warning taxpayers not to wait. Officials say many low and moderate-income taxpayers may not even realize they qualify for relief and could miss the opportunity entirely.
Tax professionals recommend filing IRS Form 843 to request a refund or abatement. The form can be downloaded from the IRS website and must be mailed to the IRS service center where the taxpayer would normally file a current return.
While the federal government continues to challenge the court ruling, tax experts say filing now is the safest option. If the ruling ultimately stands, taxpayers who submitted claims before the deadline could receive money back.
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The Biggest News Stories Of 2026 - Page 8 was originally published on 92q.com
