Background: Kwong v. United States

During the COVID‑19 pandemic, the Internal Revenue Service provided relief by extending certain tax filing and payment deadlines under its discretionary authority.

In Kwong v. United States, the court examined whether additional, mandatory relief provisions under the Internal Revenue Code should have applied. The court concluded that certain federal tax deadlines between January 20, 2020 and July 10, 2023 should have been automatically extended to July 10, 2023.

Potential Impact

If the court’s interpretation is ultimately upheld, certain penalties and interest assessed during the COVID‑era period may have been calculated using earlier deadlines than those that should have applied, meaning:

• Some penalties were assessed prematurely
• Certain interest charges may have been overstated
• Taxpayers may have grounds to request refunds or abatements

Current Status (as of 6/17/2026)

The federal government has appealed the ruling, and a final resolution may take an extended period of time. The IRS has not implemented widespread relief, and refunds would likely not be issued automatically. Any potential benefit will depend on future legal developments and IRS guidance.

Protective Refund Claims: Preserving Your Rights

Although the case remains unresolved, the statute of limitations continues to run. The statute of limitations for many COVID-era IRS penalty and interest refund claims ends on July 10, 2026. To preserve potential rights, taxpayers can file a protective refund claim using IRS Form 843: Claim for Refund and Request for Abatement by July 10, 2026.

What Is a Protective Claim?

• Allows you to preserve your right to a refund while the legal issue is being resolved
• Must be filed within the applicable statute of limitations
• Does not guarantee a refund

Who Should Review Their Situation

Taxpayers may want to evaluate their situation if, between January 20, 2020 and July 10, 2023, they:

• Paid or were assessed IRS penalties related to timing issues (e.g., late filing, late payment, deposits, or estimated taxes)
• Were charged interest on unpaid tax or penalties
• Received IRS notices reflecting late penalties or interest
• Had prior-year tax matters involving timing, penalties, or interest

Eligibility and potential benefit will vary based on the specific facts of each case. If no penalties or interest were assessed or paid during this period, no action is likely necessary.

Considerations

The issues presented in Kwong v. United States involve evolving legal interpretations and should be granted appropriate caution.

• The outcome of the case in uncertain
• Filing a claim does not guarantee recovery
• Each taxpayer’s situation requires individual analysis
• Judgement is essential in determining whether action is appropriate

Recommended Next Steps

If you believe you may be affected, consider the following steps:

1. Review Your Tax Records
   Identify any penalties or interest paid between January 20, 2020 and July 10, 2023.
2. Evaluate Potential Exposure
   Determine whether those charges were related to timing issues during the COVID period.
3. Consider Filing a Protective Claim
   Submitting IRS Form 843 before the deadline may help preserve your rights.
4. Consult with a Tax Professional
   Determine whether further evaluation and action is warranted.
5. Stay Informed
   Monitor updates as the appeals process unfolds and further guidance becomes available.

Final Thoughts

Kwong v. United States highlights a potentially impactful issue regarding COVID‑era tax relief and the application of statutory deadline extensions. While the decision is not yet final, filing a protective refund claim may provide certain taxpayers with an opportunity to preserve potential refund rights through timely action.

Taxpayers may benefit from reviewing their prior tax filings and consulting with a qualified advisor to determine whether further evaluation or action is warranted.

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