IRS COVID Refund 2026: Eligibility, Deadline, and How to Claim Your Money

A landmark federal court decision has opened the door to COVID-era tax refunds for millions of U.S. taxpayers. In Kwong v. United States, the U.S. Court of Federal Claims ruled that the COVID-19 pandemic effectively paused federal tax deadlines from January 20, 2020, through July 10, 2023.

This decision stems from the disaster-relief provision in Internal Revenue Code Section 7508A, which requires the IRS to pause all penalties and interest throughout the disaster period plus an additional 60 days. While the federal disaster period ran from January 20, 2020, to May 11, 2023, returns and payments were not considered late until after July 10, 2023.

Who Qualifies for a COVID-Era Tax Refund?

Taxpayers may be eligible for refunds or abatements of penalties and interest assessed by the IRS during the COVID-19 federal disaster period. Eligibility includes:

• Penalties for failure to timely file returns, failure to pay taxes, or failure to make estimated tax payments;
• Interest that accrued earlier than it should have or was not applied correctly;
• Overpayment interest for the same time period.

According to Erin Collins, the National Taxpayer Advocate, the issue is widespread and affects individual taxpayers, small businesses, corporations, trusts, and estates. Collins leads the Office of the Taxpayer Advocate, an independent IRS organization that assists taxpayers and advocates for their rights.

How to File a COVID-Era Tax Refund Claim

Tax relief is not automatic; taxpayers must file a claim to receive a refund. Collins states,

"Unless the IRS or Congress acts to ensure all affected taxpayers will receive refunds if the Kwong decision is upheld, taxpayers seeking refunds for penalties and interest they paid relating to that period will, in most cases, need to file claims by July 10, 2026."

To check eligibility and file a claim:

1. Review your tax records: Access your Individual Online Account on the IRS website to analyze account activity from 2020 to 2023 for any penalties or interest fees charged.
2. File IRS Form 843: Submit this form to claim a refund for penalties or interest paid during the eligible period.
3. Meet the deadline: File Form 843 by July 10, 2026.

Collins advises taxpayers to send their forms by certified mail to provide proof of timely submission in case of delays or misplacement. With millions potentially filing claims, the IRS may experience significant backlogs and processing delays.

The Department of Justice (DOJ) is expected to appeal the court’s decision, but taxpayers can still file claims in the meantime.