IRS Watchdog Warns Tens of Millions May Be Owed Pandemic-Era Refunds—Here's Who Qualifies and the Deadline

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If you paid a late fee or penalty to the Internal Revenue Service between January 2020 and May 2023, you may be owed a refund, and the IRS's watchdog says tens of millions of Americans could be in the same boat. You have until July 10 to file a claim.

A federal court ruled in November that pandemic-era disaster provisions suspended tax filing and payment deadlines from Jan. 20, 2020, through May 11, 2023, the full 3.5-year period of the federal emergency declaration. On Friday, the National Taxpayer Advocate warned that "tens of millions" of taxpayers may be entitled to refunds or abatements as a result.

"Most taxpayers, even most tax professionals, did not foresee that filing deadlines and payment deadlines would be postponed for this long," the National Taxpayer Advocate, Erin Collins, wrote in the May 1 notice. "But that is the logical extension of what the court ruled."

Collins cautioned that the Department of Justice may still appeal.

Anyone who paid late-filing or late-payment penalties and interest that accrued during the disaster period may now have grounds for a refund.

According to the Taxpayer Advocate, three categories of charges may be refundable or eligible for abatement: penalties for failing to file on time, pay on time, or make estimated tax payments; interest that began accruing earlier than it should have; and overpayment interest for the 2020–2023 disaster period.

IRS penalties and interest can quietly add up, so the chance to reclaim those funds could put real money back in your pocket.

Taxpayers have until July 10 to meet the refund deadline. Form 843 must be filed on paper—there's no electronic option. The Taxpayer Advocate recommends sending claims by certified mail so you have proof of timely submission if your form gets lost.

President Donald Trump declared the pandemic a nationwide emergency effective Jan. 20, 2020, and former President Joe Biden ended it on May 11, 2023. In the November case, the court ruled that federal law prohibited the IRS from setting filing deadlines, collecting interest, or assessing penalties during that 3.5-year window, the legal hook for the refund claims now in play.

Taxpayers seeking a refund for this period should begin by checking their tax records from those years for any late fees or penalties. Taxpayers can get their transcripts online at IRS.gov or by calling the IRS at 800-829-1040.

A tax professional can assist you with filing Form 843. The Taxpayer Advocate has urged the IRS to grant a six-month filing extension and build an electronic submission portal, but unless that happens, your paper claim must reach the IRS by July 10.

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