Understanding the July 10 Filing Deadline
Taxpayers who were charged late fees or interest during the COVID-19 pandemic period face a looming deadline to potentially reclaim those funds. According to legal experts, July 10, 2026, represents the final opportunity for many Americans to file a protective claim regarding IRS penalties assessed between January 20, 2020, and May 11, 2023.
The potential for these refunds stems from the litigation in Kwong v. United States. A federal court ruling last year suggested that federal tax filing and payment deadlines were effectively suspended throughout the federally declared COVID-19 disaster period. While the U.S. government is currently appealing this decision, taxpayers who wish to preserve their right to a refund—should the court ruling eventually be upheld—must act before the statutory deadline expires.
What Constitutes a Protective Claim
Tax experts emphasize that waiting for a final resolution in the Kwong case is not a viable strategy, as the legal window for filing a claim is fixed. A protective claim serves as a placeholder, notifying the IRS that the taxpayer is disputing the penalties based on the arguments presented in the Kwong decision.
According to Jon Wasser, a partner at Fox Rothschild, the process involves filing IRS Form 843, which is the standard document for claiming a refund or requesting an abatement. Taxpayers are advised to specify on the form that the filing is a protective claim based on the Kwong v. United States decision regarding Section 7508A(d) and the COVID-19 disaster period.
Steps for Taxpayers
For those considering a filing, the following guidelines are generally recommended by tax professionals:
- Individual Filings: Taxpayers may file on their own by using information from their official tax transcripts, which are accessible through the IRS website.
- Separate Filings: In most instances, the IRS requires a separate Form 843 for each specific tax period and type of tax.
- Proof of Submission: Given the urgency of the deadline, experts recommend sending documentation via certified mail to ensure there is an indisputable record that the claim reached the IRS prior to July 10.
- Third-Party Authorization: If a taxpayer intends to use a tax professional or a third-party preparer to assist with the filing, they must submit IRS Form 8821. Because this authorization can take approximately 14 days to process, taxpayers are encouraged to initiate this step immediately.
The National Taxpayer Advocate (NTA) has published resources to assist individuals in navigating these requirements. While some automated tools previously available to simplify the process have closed as the deadline approaches, the underlying legal mechanism remains available to those who file correctly and within the established timeframe.
