You, along with tens of millions of other Americans, may be eligible for tax refunds for penalties and interest you paid during the COVID-19 pandemic. If the IRS penalized you for missing filing or payment deadlines, you might be able to get that money back.
One court case, Kwong v. United States, is debating whether the deadline-relief period was extended during the pandemic. The IRS initially enacted a brief 120-day period in early 2020 during which the agency didn’t impose penalties for missed filing or payment deadlines. But the courts have now spoken, confirming that a federal disaster declaration automatically suspends filing and payment deadlines. This means that taxpayers may be relieved of deadline penalties and interest for the full duration of the coronavirus pandemic, from January 20, 2020, to July 10, 2023.
If you paid any penalties for late filing or late payments during this time period or any interest on late payments, you should be able to get that money back. But the IRS isn’t going to figure that out for you. Don’t expect a refund to magically appear in your mailbox. You need to do the legwork yourself. It’s up to you to figure out what you overpaid and file for a refund or abatement.
How Do You Get Your Money Back?
First, you need to look at your tax returns and any IRS notices from 2020 to 2023. If you don’t have that available, you can get it online at the official IRS Get Transcript portal. Once you have the documentation, review it for any failure-to-file or failure-to-pay penalties and interest. Next, use IRS Form 843, Claim for Refund and Request for Abatement, to claim your refund or abatement.
Be mindful of the deadline to claim your refund. The IRS generally allows three years from the date you filed your tax return or two years from the date you paid the tax to file your refund request.
Highland Tax Group Can Help
If you’re unsure how to figure out whether you’re eligible for a refund or abatement, or you’re having trouble with Form 843, the experts at Highland Tax Group can help you through the process and make sure you get your money back.