By Christopher Hensel, Staff Accountant | John B Lane CPA, Elgin, SC
Did you pay IRS penalties or interest on a tax return filed during the COVID-19 disaster period? Tens of millions of taxpayers may qualify for a refund or abatement, and the window to act is closing fast. The filing deadline for many affected taxpayers is July 10, 2026.
Why You Might Be Owed a Refund
Ongoing litigation in Kwong v. United States may affect how COVID-era penalties and interest are treated. If the IRS assessed you penalties for late filing, late payment, or related issues during the disaster period, the money you paid may be recoverable.
The IRS Taxpayer Advocate Service explains the issue in detail in this article: Tens of Millions of Taxpayers May Be Eligible for Significant Tax Refunds. We recommend reading it before you start.
How to Check If You Qualify
The fastest way to find out is to pull your IRS account transcripts for tax years 2020, 2021, and 2022. Here is how:
- Set up an ID.me account. You need this to access your IRS Online Account. Setup takes about 15 minutes.
- Log in to your IRS Online Account. Go to Records and Status, then select Tax Records.
- Open your Account Transcript for 2020, 2021, and 2022. Scroll to the Transactions section near the bottom.
- Look for penalty or interest charges that were assessed and paid during the COVID relief period. Those are the amounts potentially eligible for refund.
If you filed your return on time but still have unpaid penalties and interest, you may also qualify for penalty abatement.
How to Request the Refund or Abatement
Eligible taxpayers generally need to file Form 843, Claim for Refund and Request for Abatement. Refund and abatement claims are subject to strict statutory deadlines, so review the rules carefully and confirm which deadlines apply to your situation.
Important deadline: For many affected taxpayers, Form 843 must be filed by July 10, 2026. Do not wait until the last minute.
Should You File It Yourself?
In most cases, yes. For many taxpayers, the refund amount will be modest, and Form 843 is something you can reasonably complete on your own using your transcripts as a reference. We want to make sure you know this opportunity exists so you can take advantage of it, not pay a professional more than you would get back.
If you get stuck setting up your ID.me account, accessing your transcripts, or interpreting what you see, our team is happy to point you in the right direction.
Questions? We Are Here to Help
Call our Elgin, SC office at (803) 408-0200 or visit JohnBLane.com to request more information.
Disclaimer: This article is for general informational purposes only and is not tax, legal, or accounting advice. Consult a qualified tax professional regarding your specific situation.