PMF Business owners are paying attention to Kwong v. United States because it may affect IRS penalties and interest assessed during COVID-era tax years. The short version: some taxpayers who paid late-filing, late-payment, estimated-tax, or related interest charges may need to review whether a refund or protective claim is worth filing.
July 10, 2026 has passed. This article provides historical context, not a statement that a claim window remains open. A qualified tax professional should review your records and determine applicable deadlines and any available next steps. Refunds are not automatic or guaranteed.
July 10, 2026: historical deadline context
In its July 2, 2026 guidance, the National Taxpayer Advocate identified July 10, 2026 as a significant deadline for many potential claims under the reasoning in Kwong. That date is historical context. Do not assume that your claim is timely or untimely from this article; ask a qualified tax professional to assess the relevant dates and facts.
What the case is really about
During the COVID federal disaster period, certain tax deadlines were postponed. The core issue is whether the IRS should have treated some returns and payments as late when disaster relief timing may have pushed the operative deadline out to July 10, 2023.
If the return or payment was not actually late under that reasoning, then penalties and interest tied to the supposed lateness may deserve a second look. That is why taxpayers and tax professionals are discussing formal refund claims, protective refund claims, and abatement requests.
Who should review their account
- Individuals who paid IRS penalties or interest on 2019-2022 income tax returns.
- Business owners who had personal, business, payroll, or estimated-tax issues during the COVID years.
- Taxpayers with IRS notices showing failure-to-file, failure-to-pay, estimated-tax penalties, or interest charges.
- Anyone unsure whether penalties were paid, still open, adjusted, or removed.
Refund claim vs. protective claim vs. abatement
A refund claim asks the IRS to return money that has already been paid. A protective claim is used when you want to preserve a possible refund position while the legal issue, amount, or entitlement remains unresolved. An abatement request is different: it asks the IRS to remove or reduce an amount that has been assessed but not yet paid.
These are different procedures with timing rules that depend on the circumstances. A qualified tax professional should determine whether any procedure applies to your account.
What to gather before a review
- IRS notices showing penalties, interest, tax year, and account type.
- Account transcripts, if available.
- Payment history showing when penalties or interest were paid.
- Any previous penalty abatement letters, appeals, or IRS adjustments.
PMF LA next step
Contact PMF LA to request a review conversation and organize the records you already have. A qualified tax professional should determine applicable deadlines and whether any next step is available.
Important caution
Refunds are not guaranteed. The IRS may contest claims, facts matter, and formal tax advice should come from an appropriately qualified tax professional. PMF LA helps organize the first look so you can decide whether the next step is worth pursuing.
Sources: National Taxpayer Advocate; PMF LA Tax Refund Review.