The IRS Charged You Penalties During COVID
That It Wasn't Allowed To.
A federal court has ruled that failure-to-file penalties, failure-to-pay penalties, and underpayment interest assessed between January 20, 2020 and July 10, 2023 may be unlawful. You may be entitled to a refund — but only if you file a protective claim before July 10, 2026.
What the Federal Court Actually Said
In Kwong v. United States, the U.S. Court of Federal Claims held that § 7508A(d) of the Internal Revenue Code required the mandatory, automatic postponement of federal tax deadlines for the entire duration of the COVID-19 national emergency. The IRS did not honor that statutory requirement.
The COVID-19 disaster period ran from January 20, 2020 through May 11, 2023. With the mandatory 60-day tail under § 7508A(d), the postponement period extended to July 10, 2023. Any tax deadline falling within that window was automatically suspended by statute. Penalties and interest computed as if ordinary deadlines remained in force were improperly assessed.
emergency declared
emergency ended
period ended (+60 days)
The practical result: three-plus years of suspended deadlines — far longer than the limited relief windows the IRS announced administratively. The IRS accrued interest and assessed penalties as if the statute did not exist. Under Kwong, it may owe that money back.
You May Have a Claim If You Were Assessed Any of These During the COVID Period
Failure-to-File Penalty
Penalty assessed because a tax return was filed late — even if the due date fell within the COVID disaster window.
Failure-to-Pay Penalty
Penalty assessed because tax was paid after the statutory due date, when that due date should have been suspended.
Underpayment Interest
Interest charged by the IRS on unpaid balances where the underlying payment deadline fell within January 20, 2020 — July 10, 2023.
Late-Payment Interest
Interest on late tax payments that may have accrued during the mandatory postponement window under § 7508A(d).
Important: Filing a protective claim does not guarantee a refund. Kwong is currently subject to potential government appeal, and the IRS will likely deny claims initially pending that process. What filing guarantees is that your rights are preserved. Not filing before July 10, 2026 permanently forfeits any right to recover — regardless of how the appeal turns out.
How DeWitt Law Handles Your Protective Claim
We have streamlined this into a straightforward four-step process. From intake to filing, we handle everything.
You complete our intake form
Tell us your name, the tax years affected, and an estimate of the penalties or interest you were assessed. Takes about three minutes.
We pull your IRS account transcripts
We obtain your IRS account transcripts and identify every qualifying penalty and interest charge that falls within the COVID disaster period.
We prepare and file Form 843
We prepare your protective refund claim on Form 843, marked "Protective Refund Claim Pursuant to Kwong v. United States," and file it with the IRS before the July 10, 2026 deadline.
We confirm filing and keep you informed
You receive confirmation of filing. We monitor developments in the Kwong appeal and update you as the legal landscape evolves. If the IRS denies your claim, we will advise you on next steps.
Simple, Transparent Pricing
- IRS account transcript review for all qualifying tax years
- Identification of all qualifying COVID-period penalties and interest
- Preparation of Form 843 with proper Kwong protective language
- Filing with the IRS before the July 10, 2026 deadline
- Written confirmation of filing delivered to you
- Updates as the Kwong appeal progresses
File Your Protective Claim
Complete the form below and a member of our team will contact you within one business day to confirm your eligibility and collect payment.
More Than a Law Firm: We Help Taxpayers Fight Back Against the IRS
Tyler DeWitt leads DeWitt Law, PC — a tax controversy and criminal tax defense firm representing individuals, business owners, and organizations nationwide. As both a licensed attorney and a CPA, Tyler brings a rare combination of legal and accounting expertise to complex IRS matters, including penalty abatement, tax court litigation, IRS criminal defense, and now COVID-era refund claims under Kwong v. United States.
Contact DeWitt Law
Arlington, TN 38002