Pat Rhodes Accounting, Inc.

Alert to all Business owners and Individuals:
You may be entitled to an IRS penalty/interest refund due to a recent federal court case. Kwong v. United States court decision. This case challenged how IRS applied certain filing and payment deadlines during the COVID emergency period.

If your tax return, payment deadline, or penalties fell between January 20, 2020 and July 10, 2023, you may have overpaid certain IRS penalties and interest.
Tens of Millions of taxpayers may be entitled to refunds or abatements of COVID-19 period penalties and interest. Relief is not automatic - most taxpayers must file refund claims by 7/10/2026. Complex legal developments and a lack of information create a risk that many taxpayers will miss out entirely on this relief.
WITHOUT IRS or CONGRESSIONAL ACTION, many taxpayers will not receive the relief they deserve. Taxpayers should be allowed more time to become aware and take action to claim refunds they deserve.

This impacts:
• 2019–2022 Individual and Business tax returns, with deadlines in that period
• Failure-to-file penalties
• Failure-to-pay penalties
• Estimated tax penalties

Important: July 10, 2026 is the deadline to file to preserve refund rights. We encourage eveyone to contact their local Congressional representatives to ask for more time to truly correct this error. Penalties and interest charged during the pandemic deserve more time for people to get these refunds. Form 843 must be completed and mailed in to IRS... the form cannot be efiled.

If you believe you were assessed penalties or interest during this timeframe, check your records. If possible, pull your IRS account transcripts to see if penalties or interest were charged during that time. As awareness of this issue grows, there may be increased processing delays for Forms 2848 and 8821, which are commonly used for transcript access.

Not everyone will qualify, but it is worth reviewing before the potential window closes. Civic action is needed to allow more time to file.