IRS watchdog warns millions could be owed pandemic refunds — but the deadline is closing fast. Do this now to check

2 weeks ago 16

Tens of millions of Americans whitethorn beryllium owed refunds connected IRS penalties and involvement from the pandemic. The catch: claims person to beryllium filed connected insubstantial by July 10, 2026, and the IRS hasn't gone retired of its mode to publicize it.

National Taxpayer Advocate Erin Collins called that retired successful an April 30 blog post, informing the deadline could softly walk for astir affected taxpayers portion a smaller radical with taxation attorneys cod what could beryllium billions successful refunds. (1)

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"My overriding extremity is to get the connection retired to arsenic galore taxpayers arsenic imaginable and to debar disparate results betwixt the 'well advised' and the 'unaware,'" Collins wrote. (1)

Here's what triggered it, who whitethorn beryllium eligible and what has to hap earlier immoderate wealth changes hands.

What triggered this

The contented stems from a November 2025 ruling successful Kwong v. United States, decided by Judge Molly Silfen of the U.S. Court of Federal Claims. (2)

A taxation codification proviso known arsenic IRC § 7508A(d) automatically pauses national filing and outgo deadlines during a declared nationalist disaster, positive 60 days. The COVID-19 catastrophe declaration ran from Jan. 20, 2020 to May 11, 2023. Add the 60-day buffer and the intermission runs done July 10, 2023 — a agelong of astir 3 and a fractional years. (1)

The tribunal ruled that nether the plain speechmaking of Section 7508A(d), deadlines truly were paused for that full window, meaning returns and payments made during the pandemic weren't legally late, and the IRS shouldn't person charged penalties oregon involvement connected them. (1)(2)

A abstracted Tax Court ruling, Abdo v. Commissioner (2024), reached a akin conclusion, strengthening the ineligible instauration for refund claims. (1)

The IRS disagrees, arguing the regularisation requires a defined extremity day to trigger automatically. The Justice Department is expected to appeal. (2)

Who whitethorn beryllium eligible

Under the reasoning of the Kwong decision, taxpayers whitethorn beryllium entitled to a refund oregon abatement for respective types of charges assessed betwixt Jan. 20, 2020 and July 10, 2023: (1)