05/07/2026
A recent decision by the U.S. Court of Federal Claims—the Kwong case—may reopen refund, penalty, and interest relief opportunities for millions of taxpayers affected by IRS deadlines during the COVID‑19 pandemic. In Kwong v. United States, the court held that federal tax deadlines were automatically suspended for the entire federally declared COVID‑19 disaster period, from January 20, 2020 through July 10, 2023, plus a mandatory 60‑day extension. As a result, certain refund claims and challenges that the IRS previously considered “late” may actually be timely, with many claims now due as late as July 10, 2026.
What Happened in the Kwong Case?
The Kwong case is a very technical case. Taxpayer Terry Kwong sued the United States seeking refunds of penalties the IRS had assessed for earlier tax years.
Normally, a taxpayer has two years after the IRS denies a refund claim to file suit. The IRS argued that Mr. Kwong missed that deadline and asked the court to dismiss the case.
Kwong case ruling tolled IRS tax deadlines during COVID, allowing many taxpayers to seek refunds or penalty relief as late as July 10, 2026
