Taxpayers may file claims by July 10 to recover penalties and interest charged by the IRS between 2020 and 2023 amid ongoing litigation.
Taxpayers across the U.S. may be eligible for refunds on IRS penalties and interest totaling $9 million or more, stemming from charges imposed between January 2020 and July 2023. The opportunity follows a court ruling in *Kwong v. United States*, which challenges the legality of these penalties during the COVID-19 pandemic.
The IRS is appealing the decision, but taxpayers must act by July 10 to preserve their claims. Filing a protective claim by this deadline is required to seek refunds or abatements if the IRS ultimately loses the case. Legal experts estimate tens of millions of taxpayers could be affected.
Law firms and tax advisers report a surge in inquiries as the deadline approaches. The IRS has not yet provided guidance on processing these claims, leaving uncertainty about the timeline for potential refunds.