J.R. Martin & Associates - CPA

Did you pay IRS penalties during the COVID years? A court case called Kwong may give you a window to get some of it back, but it could close July 10, 2026.

In late 2025, the U.S. Court of Federal Claims decided Kwong v. United States. The court found that the COVID-era disaster period, running roughly January 20, 2020 through July 10, 2023, should be treated as postponing certain tax deadlines. That has opened a potential pathway for taxpayers to seek a refund or abatement of certain penalties and related interest, usually by filing Form 843.

For many taxpayers, the deadline to protect a potential claim may be July 10, 2026. That is not much time. Once that window closes, you could lose the ability to protect your rights, even if future court decisions favor taxpayers.

A couple of honest caveats. The government is expected to appeal, so the decision is not final and could change. This is not automatic and not guaranteed, and it depends on your specific facts. But if you paid meaningful penalties between 2020 and 2023, the time to investigate is now.

Talk with a qualified advisor first. Explore your options at jrmartincpa.com. Be blessed and build better businesses.