How to File a Kwong v. United States Claim for a COVID-19 Penalty Refund — Now Through Your IRS Online Account
If you paid IRS penalties or interest for tax years 2019 through 2022, a recent court decision may entitle you to a refund — but only if you file a claim before July 10, 2026. The IRS just made that easier by opening a new electronic filing option through IRS.gov. Here’s what’s going on and how to file.
What Is the Kwong Ruling?
In Kwong v. United States, the U.S. Court of Federal Claims held that IRC Section 7508A(d) automatically postponed every federal tax filing and payment deadline that fell between January 20, 2020, and July 10, 2023 — the COVID-19 disaster relief period. Under that reasoning, many of the failure-to-file penalties, failure-to-pay penalties, and underpayment interest charges the IRS assessed during that window may have been improper.
The IRS is appealing the decision and is not currently issuing refunds. Filing a claim now doesn’t get you a check today — it preserves your right to one if the IRS ultimately loses the case. Miss the deadline, and you lose that right permanently, even if the appeal later goes in taxpayers’ favor.
The Deadline: July 10, 2026
Refund claims generally must be filed within three years of the return’s due date. Because the Kwong decision treats the postponed deadline as July 10, 2023, the three-year window closes on July 10, 2026. That date applies to most affected taxpayers — there is no extension for missing it.
Who Should Check Their Records
Consider filing a claim if you were assessed or paid any of the following for tax year 2019, 2020, 2021, or 2022:
- A failure-to-file penalty
- A failure-to-pay penalty
- An estimated tax (underpayment) penalty
- Interest on a late payment
Important: you can only claim a refund of penalties and interest that have already been paid in full. If you still owe tax, penalties, or interest for the year in question, this process doesn’t apply to you — you’d need a different filing approach, and you should talk to a tax professional.
Step 1: Pull Your IRS Account Transcripts
Log in to your account at IRS.gov (or create one if you don’t have one yet). Go to Account Home > Records and Status > Tax Records, then select View Transcripts. Pull your account transcripts for each tax year in question (2019–2022).
On each transcript, look for these transaction codes:
- Code 170 – Penalty for not pre-paying tax
- Code 276 – Penalty for late payment of tax
- Code 196 – Interest charge for late payment
If you see these codes for a period between January 20, 2020, and July 10, 2023, that penalty or interest may be eligible for a refund under Kwong.
Step 2: File Form 843 — Now Electronically Available for Many Filers
As of July 2026, individual taxpayers with an existing IRS Online Account can file Form 843 electronically for Kwong-related claims involving fully paid interest and penalties, through the new tool on the IRS.gov Mobile-Friendly Forms page. From your account, go to Forms > Other Forms > Form 843.
When you reach the “Why You’re Here” screen, select “Protective claim based on mandatory COVID-19 disaster tax relief and/or Kwong v. United States.” On the following “Reason for Filing” screen, select “Refund of assessed penalties and interest based on pending litigation.” Both selections are required.
A few rules to keep in mind:
- One tax year per form. If you have penalties or interest for more than one year, you must file a separate Form 843 for each year.
- Joint returns need both signatures. If you filed married filing jointly, your spouse also needs their own IRS Online Account to review and sign the claim electronically.
- Business taxpayers, and anyone who prefers not to e-file, must still use the paper version of Form 843 and mail it to: Internal Revenue Service, 1973 N Rulon White Blvd., Ogden, UT 84201. If filing by paper, write “Kwong vs. United States” across the top of the form so it’s routed correctly.
Bottom Line
Relief under Kwong is not automatic, and the IRS will not adjust your account on its own. If you paid penalties or interest during the COVID-19 disaster period and haven’t filed a claim, the clock is running down fast.
This post is for general informational purposes and is not legal or tax advice specific to your situation. The Kwong decision is under appeal and the law remains unsettled. Please contact our office to discuss your individual circumstances.