The IRS may owe you money from the pandemic years - but you have to claim it

"A February ruling in Kwong v. United States (2025)—a lawsuit concerning a plaintiff's attempt to get a refund for tax penalties—decided that deadlines for filing tax returns, paying taxes, or filing for refunds needed to be completed by July 11, 2023. So, if a taxpayer was supposed to file their 2020 tax return by April 15, 2021, the date was shifted to July 11, 2023."

"The courts are saying that the IRS didn't have standing to charge penalties or interest while the emergency postponement was in effect, plus 60 days. The public health emergency caused by the pandemic lasted between January 20, 2020 and ended May 11, 2023. Sixty days after that: July 11, 2023."

"It's possible that taxpayers could be due for a refund, or to have penalties or interest levied against them for unpaid taxes relieved. It's possible, though, that the IRS and federal government can appeal the ruling, so nothing is set in stone."

A February 2025 U.S. Court of Federal Claims decision in Kwong v. United States reinterpreted IRC Section 7508A regarding tax deadline postponements during disasters. The ruling established that all tax filing, payment, and refund claim deadlines were extended to July 11, 2023—60 days after the public health emergency ended on May 11, 2023. The court determined the IRS lacked authority to charge penalties or interest during this extended period. This interpretation may have resulted in incorrect IRS calculations affecting penalties, refunds, and interest charges. Taxpayers who believe they were unfairly charged penalties or interest during this timeframe may be eligible for refunds. However, the ruling remains subject to potential government appeal.

Read at Fast Company