Taxpayers who paid late-filing penalties on federal returns due between 2020 and 2023 face a narrow window to recover those charges. The IRS already granted automatic relief for many penalties tied to 2020 and 2021 returns, but filers who missed that round or who believe disaster-related postponement rules cover later tax years must act before July 10 to submit a formal refund request. With just days left, the clock is running on claims that hinge on how broadly federal law allows deadline extensions during declared disasters.
Why the July 10 deadline changes the calculus for late-filing penalties
The IRS took administrative action to provide targeted COVID-era relief, using its authority to waive failure-to-file penalties for eligible 2020 and 2021 returns. In that initiative, described in an official IRS bulletin, the agency automatically reversed certain penalties for taxpayers who filed late but by specified cutoff dates. That program addressed a specific slice of COVID-era penalties, but it did not cover every filer or every tax year in the 2020-through-2023 range. Anyone whose penalty was not automatically removed, or who paid a late-filing charge on a 2022 or 2023 return, now needs to file a separate claim.
The vehicle for that claim is Form 843, officially titled “Claim for Refund and Request for Abatement.” Filers use it to ask the IRS to reverse or refund a penalty they have already paid. The form requires a clear explanation of why the penalty should be removed and supporting facts that tie the taxpayer’s situation to a recognized basis for relief, such as statutory disaster postponements or reasonable cause.
For claims tied to disaster-period extensions, the legal foundation is Section 7508A of the Internal Revenue Code. That statute authorizes the Treasury Secretary to postpone certain tax deadlines when a federally declared disaster is in effect, including filing, payment, and other time-sensitive acts. During the COVID-19 national emergency, the IRS relied on this authority to push back filing and payment due dates for broad categories of taxpayers. The open question is whether courts will read that authority as covering the full span of disaster declarations that stretched well beyond 2021, potentially shielding returns due in 2022 and 2023 from late-filing penalties as well.
Statutory authority and the limits of automatic IRS relief
The text of Section 7508A gives the government broad power to postpone deadlines for “acts” required under the tax code during a federally declared disaster. The IRS used that power to grant extensions during the early phase of the pandemic, issuing notices that shifted the traditional April filing deadline and aligned payment dates with the postponed due dates. Its later administrative relief, announced in FS-2023-28, applied automatic penalty waivers for certain 2020 and 2021 returns in specific circumstances, according to the agency’s own guidance.
What the IRS did not do is extend that automatic treatment to 2022 and 2023 returns in any publicly documented administrative action. Filers seeking relief for those later years are left to argue, through Form 843, that the statutory language itself supports their position. The theory draws on the idea that disaster declarations remained active long enough to cover filing deadlines that fell after the initial emergency measures, and that taxpayers who relied on those declarations should not be penalized for filing on a schedule they reasonably believed was protected.
That argument faces practical limits. The IRS has not publicly endorsed a broad reading that would nullify late-filing penalties for all returns due through 2023, and the agency typically construes disaster postponements by reference to specific notices that define who qualifies and for what period. Without a clear administrative statement, taxpayers must persuade the agency that their circumstances fall within the statute’s reach or be prepared to press the issue in refund litigation if a claim is denied.
How to file a timely claim before July 10
Taxpayers who intend to challenge penalties should focus on three steps. First, they need to confirm exactly which penalties were assessed and paid, using IRS account transcripts or prior notices. Second, they must complete Form 843 with a concise statement of facts, identifying the tax period, the type of penalty, and the legal basis for relief, whether that is Section 7508A disaster postponement or another recognized ground. Third, they must mail or otherwise submit the form so it is filed on or before July 10, preserving their rights within the applicable refund window.
Filers can monitor the status of their requests and existing penalties through the IRS’s online account system, accessible via the agency’s account portal. While processing times vary, submitting a complete, well-documented claim improves the odds of a straightforward review. Taxpayers who are unsure how Section 7508A applies to their situation, or who are weighing potential litigation if the IRS denies relief, may wish to consult a tax professional familiar with disaster-related postponement rules.
With the July 10 deadline approaching, the opportunity to revisit COVID-era late-filing penalties is closing. For taxpayers who paid those charges on returns due between 2020 and 2023, filing a timely Form 843 may be the last practical chance to test how far the disaster relief statute reaches and, potentially, to recover money that might otherwise remain with the Treasury.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
