Could an old IRS notice from the pandemic still be worth money? A November 25, 2025 ruling in Kwong v. United States says certain federal tax deadlines may have been suspended for the full COVID disaster period, opening the door to possible refunds of penalties and interest that piled up while many households and businesses were under extraordinary pressure.
That does not mean a surprise payment is automatically on the way. For the most part, this is a paperwork story, not a stimulus story, and tax advisers say taxpayers who think they were charged during that window should pay close attention to July 10, 2026 because waiting too long could mean losing the chance to preserve a claim.
Why this refund window suddenly matters
The court fight centers on Section 7508A(d). In broad terms, the Court of Federal Claims said the COVID incident period ran from January 20, 2020 through May 11, 2023, and the statute added another 60 days, making July 10, 2023 the key end point in that reading of the law.
Why does that matter for ordinary taxpayers? If deadlines were legally postponed during that span, then some failure-to-file penalties, failure-to-pay penalties, and underpayment interest assessed during that period may not have been collectible in the way the IRS had treated them. That is the opening.
Who should take a closer look
This potential relief is not limited to one kind of filer. Individuals and businesses whose accounts show interest or penalties tied to returns or payments in that period may have reason to take another look, especially if the pandemic years were a blur of delayed paperwork, lost income, or tight cash flow.
But not everyone with an old tax issue will qualify. If your IRS records show no penalty or interest charges during the disputed window, there may be nothing to recover, and if the numbers are large or spread across several years, a tax professional can help sort out what is actually at stake.
How to check your records without guessing
The IRS already tells taxpayers where to start looking. Its transcript guidance says people can view, print, or download transcripts through an Individual Online Account, and those records can show balances due, interest, and penalties.
There is also a low-tech option, which might be a relief for anyone who has forgotten more passwords than tax deadlines. The IRS says transcripts can be mailed in five to ten calendar days, and taxpayers can request them through the agency’s automated phone line at 800-908-9946.
The small transcript detail that can change everything
One detail matters more than it first appears. IRS guidance says each account transcript covers only one tax year and may not show the most recent penalties, interest, changes, or pending actions, so reviewing just one year can leave gaps.
That is especially important for businesses and for people who filed something other than a standard Form 1040. The IRS says businesses, or individuals who filed a different form, may need to use Form 4506-T to obtain the right transcript records.
What filing actually looks like
If the records suggest you were charged during the disputed period, the official IRS form for asking for a refund or abatement of certain penalties and interest isForm 843.
IRS procedures also make clear that “protective claims” exist and can be used when a claim is tied to current litigation, which helps explain why advisers keep urging taxpayers not to leave this until the court fight is fully settled.
At the end of the day, the clock is the real headline. The IRS says refund claims generally must be filed within three years of filing a return or two years after paying the tax, whichever is later, and firms following the Kwong decision say that framework could make July 10, 2026 the practical deadline for preserving many of these COVID-era claims.
Old notices stuffed in a drawer may not look like much, but in some cases they may still be worth checking before the window closes.
The official court opinion was published on GovInfo.
