Why Millions Of Americans Could Receive IRS Refunds

Millions of Americans could still qualify for tax refunds tied to pandemic-era IRS penalties and interest following a recent federal court ruling, according to reports and statements from the IRS Taxpayer Advocate Service.

The issue centers on the case Kwong v. United States, which found that the IRS may have improperly charged certain penalties and interest between January 2020 and July 2023 during the Covid-19 federal disaster period. According to the ruling, taxpayers may have until July 10, 2026, to file claims for refunds or penalty relief.

IRS may owe millions of taxpayers refunds for pandemic-era penalty relief. How to file a claim https://t.co/xI8MRWaMoT

— CNBC (@CNBC) May 11, 2026

The report said the decision is not yet final and could still face appeal.

However, National Taxpayer Advocate Erin Collins described the issue as a potentially major refund opportunity affecting individuals, small businesses, corporations, estates, and trusts.

Most taxpayers must file Form 843 by mail to seek a refund or penalty waiver. Collins advised taxpayers to review IRS records carefully and consult qualified tax professionals before filing claims, especially because the legal situation remains unresolved.

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