By Tiffani Jackson
Fort Worth Star-Telegram
(TNS)
During the height of the COVID-19 pandemic, tax deadlines felt like they were constantly shifting. The IRS announced relief. Payments were deferred. Most Americans were just trying to keep up.
Now, a federal court ruling found that federal tax deadlines during the pandemic may have been automatically postponed by law, which could mean the IRS shouldn’t have charged certain interest and penalties during that time.
If the ruling ultimately stands, some Americans could be owed refunds.
Here’s what to know.
What did the court decide about COVID tax deadlines?
In November 2025, the U.S. Court of Federal Claims ruled in Kwong v. United States that a section of the Internal Revenue Code required a mandatory postponement of certain federal tax deadlines during the COVID disaster period.
According to Frost Law, the court found that the statute’s language is clear: “Section 7508A(d) provides that if a federally declared disaster occurs, certain tax deadlines are automatically suspended for the duration of the disaster period plus an additional 60 days. “
The court determined that the COVID-19 national emergency began Jan. 20, 2020, and ended May 11, 2023.
With the additional 60 days required under the statute, federal tax deadlines that fell between Jan. 20, 2020, and July 10, 2023, were effectively postponed until July 11, 2023.
“The ruling raises significant refund and abatement opportunities for affected taxpayers and warrants immediate review of accounts,” Frost Law said in a blog post.
The firm also noted that the court “did not limit this effect to specific forms or categories of tax,” instead treating the suspension as broadly applicable.
How could this affect real tax bills?
Because the court didn’t limit the ruling to specific types of tax, it could affect a range of federal obligations, including individual income tax returns, estimated payments, employment taxes and certain business filings.
During the pandemic, a lot of people didn’t just owe their original tax balance. If payments were late, the IRS added interest and failure-to-pay penalties.
If higher courts uphold this ruling, interest and penalties tied to deadlines within that January 2020 through July 2023 window could potentially be refunded or removed.
At its core, this isn’t about erasing tax debt altogether. It’s about whether certain added charges should’ve been applied in the first place.
Who may qualify for a potential refund?
Not everyone who filed taxes during the pandemic will be affected.
“Taxpayers who paid underpayment interest or penalties during the suspension period may have grounds to seek refunds,” Frost Law said. “The potential dollar amounts could be significant, particularly for businesses that faced liquidity challenges during the pandemic and incurred substantial failure-to-pay penalties.”
If you filed and paid on time and didn’t incur penalties, this likely won’t apply to you. And if you still owed your original tax balance, that underlying tax debt doesn’t disappear.
Is there a deadline to claim a refund?
Yes. Federal law limits how long you have to file a refund claim.
“The statute of limitations for refund claims generally runs three years from the time the return was filed or two years from the time the tax was paid, whichever is later,” Frost Law said.
That means some returns filed in 2020 or 2021 may already be approaching the three-year refund deadline.
If a claim isn’t filed within the applicable statute of limitations period, you could lose the ability to recover money, even if higher courts ultimately uphold the decision.
Refund deadlines won’t pause while litigation continues.
What should I do if I think I’m owed a COVID-era tax refund?
If you believe the IRS charged you interest or penalties tied to deadlines within the Jan. 20, 2020, through July 10, 2023 window, start by reviewing your IRS account transcripts.
Look for underpayment interest, failure-to-pay penalties or failure-to-file penalties that were assessed during that period.
If those charges appear to fall within the suspension window, Frost Law recommends filing Form 843, Claim for Refund and Request for Abatement.
“Filing a protective claim before the expiration of the statute of limitations preserves the ability to seek relief even if further appellate proceedings alter the legal landscape,” the firm said.
Even though the ruling isn’t final and an appeal is likely, filing a claim now may help protect your right to recover money if the decision is upheld.
You may also want to consult a tax professional, especially if large amounts of penalties were involved or if your case includes business or payroll taxes.
Photo credit: cabania/iStock
_______
©2026 Fort Worth Star-Telegram. Visit star-telegram.com. Distributed by Tribune Content Agency LLC.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
