The IRS has an online portal for eligible taxpayers seeking refunds under the Kwong decision. For some (but not all) taxpayers the deadline for putting in a claim is looming – July 10. Americans living abroad should pay particular attention, as their filing and payment dates may affect whether they can still submit a claim.
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Millions of taxpayers may have only one day left to preserve potential refunds under the Kwong decision, and the IRS has now opened a dedicated online portal to help filers submit protective claims before their individual deadlines expire. As a reminder, the Kwong decision held that the IRS could not charge interest or certain penalties during periods when tax deadlines were postponed under federal disaster relief authority.
The Internal Revenue Service has launched an online submission portal for eligible taxpayers seeking relief, making it easier for affected taxpayers to submit claims before the approaching deadline. Individual taxpayers must have an IRS Online Account to submit their Form 843, Claim for Refund and Request for Abatement, electronically through this new secure application. The IRS will only accept electronic claims on Form 843 related to fully paid interest and penalties that cite Kwong v. United States.
Until now, taxpayers were generally told to file Form 843 on paper. By creating a dedicated electronic submission process so shortly before the statute expires for some claims, the IRS may be implicitly acknowledging that it expects a substantial number of refund claims. Indeed, the National Taxpayer Advocate estimated that tens of millions may be eligible for substantial refunds, not only for penalties but also for interest that may have accrued on those amounts.
Understanding The Kwong Deadline
Importantly, July 10, 2026, is not a universal deadline for every taxpayer potentially affected by the Kwong decision. The applicable deadline depends on the taxpayer’s individual circumstances, including when the relevant tax return was filed and when the tax was paid. However, for many taxpayers whose claims are tied to the Covid-19 disaster relief period, July 10 may be the final day to preserve a refund opportunity.
Why The Kwong Case Matters
I previously wrote about the Kwong case and the potential refund opportunity for taxpayers affected by Covid-19-related tax payment postponements.
The IRS has since taken an important administrative step by creating an electronic process for submitting claims. The new portal gives taxpayers a more accessible way to request relief before their applicable deadline expires.
The significance of Kwong is that the dispute was not simply about whether taxpayers received additional time to file their tax returns. It involved the legal question of whether interest could properly accrue on tax owed during periods when tax deadlines were postponed under congressional authority. Kwong can also be applied to abate late filing and payment penalties as well as interest owed on those penalties. Additionally, interest may be owed to taxpayers by the IRS on overpayments.
For taxpayers affected by the decision, the deadline issue is critical. A taxpayer who may have a valid claim but fails to submit it before the applicable limitations period expires could lose the ability to recover amounts that may be refundable. For many taxpayers, July 10, 2026, is the deadline to file a protective Form 843 claim. Again, the applicable deadline depends on individual circumstances, such as when tax was paid, and taxpayers should review their individual situations carefully.
Americans Overseas Should Act Now
Americans living abroad should pay particular attention. U.S. taxpayers overseas often face added complexity in meeting U.S. tax obligations, including coordinating information from foreign employers, financial institutions and tax authorities. As a result, some may have been affected by the pandemic-era postponement rules addressed in Kwong.
Taxpayers living outside the United States are generally granted an automatic two-month extension to file their federal income tax returns, moving the normal filing deadline from April 15 to June 15. This additional time to file may be relevant when determining the applicable deadline for a Kwong refund claim because the limitations period may depend on when the taxpayer’s return was filed and when the tax was paid.
Bottom Line For Taxpayers
The IRS’s creation of a dedicated portal shortly before certain deadlines expire is significant. While the IRS has not conceded every legal issue raised by the litigation, the agency has established a process for taxpayers to submit claims and seek review. Taxpayers who believe they may be affected should examine their filing and payment records promptly and determine whether they need to act before their applicable deadline expires.
For some taxpayers, July 10 may be the final opportunity to preserve a claim. For others, the deadline will depend on their own filing and payment history. Taxpayers should not assume the opportunity will remain open indefinitely.
Reach me at vljeker@us-taxes.org
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NO ATTORNEY-CLIENT RELATIONSHIP OR LEGAL ADVICE
This communication is for general informational purposes only. It is not intended to constitute tax advice or a recommended course of action. Professional tax advice should be sought as the information here is not intended to be, and should not be, relied upon by the reader in making a decision.