Millions of Americans can claim IRS refunds for pandemic-era tax penalties
Updated
Updated · The Wall Street Journal · Apr 30
Millions of Americans can claim IRS refunds for pandemic-era tax penalties
11 articles · Updated · The Wall Street Journal · Apr 30
National Taxpayer Advocate Erin Collins said claims may cover late-filing, interest and estimated-tax penalties, with many taxpayers needing to mail Form 843 by 10 July.
A Court of Federal Claims ruling found Covid disaster declarations paused many tax deadlines from 20 January 2020 to 10 July 2023, potentially affecting individuals, businesses, estates and trusts.
In fiscal 2022 alone, the IRS imposed more than 28 million relevant penalties worth over $12bn; Collins warned paper-only claims could overwhelm the agency and urged broader relief.
Could millions of taxpayers miss out on refunds if they don't file Form 843 by July 10, 2026, despite the court ruling?
How might the government's potential appeal affect those seeking penalty and interest refunds for pandemic-era tax filings?
What hidden challenges could arise for taxpayers and the IRS as they navigate this unprecedented wave of refund claims?