COVID-Era Tax Refunds: File Form 843 by July 10

Nobody enjoys a penalty notice from the IRS. You open it, you wince, you pay it.

But if you’re one of the millions of Americans who paid IRS penalties or interest during the pandemic years, it’s worth taking another look. If you paid or owed IRS  failure-to-file or failure-to-pay penalties, or interest on your 2019, 2020, 2021, or 2022 taxes, there’s a chance you could claim an IRS COVID penalty refund.

The deadline to claim it is July 10, 2026.

How a court ruling could put COVID-era tax penalty money back in your pocket

In November 2025, a federal court determined that the COVID-19 public health emergency qualified as a disaster under tax law, with protection running from January 2020 through to a final extended deadline of July 10, 2023.

That means tax filings for 2019 through 2022 should all have fallen within that protected window. If you received failure-to-file or failure-to-pay penalties, or incurred interest during that time, you might be due a refund, if the ruling is upheld.

The IRS is appealing the Kwong ruling and the issue may be unresolved for some time, but it’s important that you make your claim anyway, and make it before the deadline.

This is separate from the automatic IRS COVID penalty relief in 2022. Even if you were paid that at the time, you could still be entitled to a further refund.

How to check whether you paid or owed a qualifying penalty or interest

Pull up your IRS tax transcripts for 2019 through 2022. You can access these for free through your IRS Individual Online Account at IRS.gov. You’re looking for failure-to-file or failure-to-pay penalties, or interest reported on your transcripts. If you filed through TurboTax, your tax history may already be in your account.

How to file your COVID tax refund claim using Form 843

Form 843 is a one-page form that lets you ask the IRS to refund penalties or interest. You can download it directly from the IRS website, but it needs to be submitted in the mail, and you need a separate form for each tax year you’re claiming.

Fill out all necessary information on Form 843 like the related tax year, amount to be refunded, the reason for your request and why you believe the claim should be allowed. Specify that it is a Protective Claim Based on COVID-19 disaster period and court rulings

It’s important to specify the reason you’re requesting a penalty waiver, in this case that it’s a protective claim based on Kwong v. United States.

The claim is “protective” because the Kwong ruling is still working its way through the courts, as the IRS is appealing the ruling and the issue may not be resolved for some time. Filing a protective claim means you’re preserving your right to a COVID penalty refund now, before the deadline. That means if the ruling is upheld, you’re already in the queue. If you don’t file by July 10, you could lose that right permanently, regardless of how the case ultimately resolves.

Because this form can only be mailed, like all mailed correspondence to the IRS, it is recommended that you send the form certified return with a signature so that you know and have proof that someone at the IRS received it.

Don’t leave Covid-era penalty money on the table

Any claim related to the COVID pandemic disaster period must be filed within three years of the legally recognised federal disaster deadline of July 10, 2023 — making July 10, 2026 the final day to submit, and it’s a hard deadline. Miss it, and you miss out on the potential for a COVID tax refund. The good news is you still have time, but not a lot of it.

And don’t panic if you’re not sure where to start, or if you even qualify. A TurboTax expert can help you review your tax history and walk you through the process so nothing gets missed.