COVID Tax Penalties You Might Get Back — But Not If You Miss July 10

A federal court ruled in Kwong v. United States that the IRS may not have had legal authority to charge penalties and interest during the COVID-19 disaster period (January 20, 2020 – July 10, 2023). If that ruling holds, millions of taxpayers could be entitled to refunds. But relief is not automatic — and for most people, the deadline to file a protective refund claim is July 10, 2026. In this episode of Three Things Thursday, I break down three things most people get wrong about this case: 1. The IRS said COVID deadlines were extended. The court said they were suspended. Those are not the same thing — and the difference determines whether penalties and interest were legally owed. 2. A protective claim is not a guaranteed win. It's a way to preserve your rights while the courts finish sorting this out. Miss the deadline, and the outcome of the case doesn't help you. 3. July 10th is the deadline — but the postmark is the filing. New USPS rules effective December 24, 2025 changed when postmarks are applied. Drop your Form 843 in a blue mailbox near the deadline and you may get a late postmark. Go to a post office counter. Get certified mail. Get a receipt. Resources mentioned: National Taxpayer Advocate three-part series: taxpayeradvocate.irs.gov (search: Kwong) IRS Form 843: irs.gov/forms-pubs/about-form-843 Find a credentialed Enrolled Agent: naea.org ⚠ IRS Circular 230 Disclosure: This content is for educational purposes only and is not intended to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties under the Internal Revenue Code. Bill Bourbonnais, EA, CTC, CTP, CTS is an Enrolled Agent and the owner of Bourbonnais Tax Associates LLC, a virtual tax strategy and advisory firm based in Raleigh, NC, serving business owners and real estate investors nationwide.