In Terry W. Kwong v. The United States, taxpayer Terry Kwong argued that between Jan. 20, 2020, and July 10, 2023, various pandemic-related rules delayed certain key deadlines. The IRS disagreed. As a result, a huge number of taxpayers may be due refunds.
According to The New York Times, “Judge Molly R. Silfen wrote that while disaster declarations often apply to local, short-term weather events, the pandemic was an ‘unprecedented and long-lasting’ national event. ‘Although Congress may not have anticipated a disaster declaration lasting more than three years,’ the judge wrote, ‘the statute’s express text nevertheless applies.'”
As summarized by IRS Taxpayer Advocate:
Under the reasoning of the Kwong decision, you may be entitled to a refund or abatement of certain amounts assessed during the COVID-19 period, including:
- Penalties assessed for failure to timely file returns, failure to pay taxes or failure to make estimated tax payments.
- Interest that began accruing earlier than it should have or not at all.
- Overpayment interest for the 2020-2023 disaster period.
Due date
This is just a summary of a complex ruling. Also, many experts believe the IRS will appeal the decision, so don’t start spending that money yet! For now, pick up your phone and call a qualified tax adviser; this is not a do-it-yourself job. Most taxpayers face a July 10 deadline, so act now.
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