Taxpayers who paid interest or penalties tied to COVID-19 disaster relief now have a digital path to claim refunds, but the window closes in eight days. The IRS on July 1 launched an online option to file Form 843 through IRS Online Account, targeting claims that cite the federal court ruling in Kwong v. United States. The statute of limitations for many of these refund claims expires on July 10, 2026, creating an urgent deadline for anyone who has not yet filed.
Why the July 10 deadline changes everything for Kwong refund claims
The National Taxpayer Advocate warned taxpayers to act by July 10, 2026, to protect potential COVID-19 disaster relief refund claims, stressing that waiting beyond that date could permanently close the door on refunds. After that date, the statute of limitations bars many filers from recovering money they already paid in interest and penalties during the pandemic period. The clock is tied to IRC Section 7508A(d), the provision at the center of both the Kwong case and a related Tax Court decision, Abdo v. Commissioner.
In practical terms, the limitations period means taxpayers must have a valid, timely Form 843 claim on file by July 10, 2026, or risk losing their rights entirely. The Kwong litigation focused on how the government applied disaster-relief postponements during COVID-19 and whether certain time-sensitive tax obligations were extended. Taxpayers who paid interest or penalties that, under the courts’ reading of Section 7508A(d), should have been suspended or postponed may be entitled to refunds, but only if they submit claims before the statutory window closes.
Until now, filing Form 843 for these claims meant printing, completing, and mailing a paper form. That process could take weeks to reach the IRS and months to process. The new electronic channel, announced the day before this article, lets eligible taxpayers submit Form 843 directly through their IRS Online Account or the agency’s mobile-friendly forms application. The practical effect: a filer who discovers the deadline today still has time to submit electronically before July 10, something paper mail could not guarantee.
The speed question matters because the IRS has also formally addressed the legal theory behind these claims. In Internal Revenue Bulletin 2026-23, the agency acquiesced in result only to Abdo v. Commissioner, 162 T.C. 148 (2024), which involved the same statutory provision. That partial acquiescence signals the IRS accepts the outcome of Abdo but reserves disagreement with parts of the court’s reasoning, leaving some legal ambiguity for future cases even as it processes current claims.
Who qualifies and how the online Form 843 tool works
The electronic option is not open to every taxpayer with a pandemic-era grievance. IRS guidance on Kwong-related claims specifies that the online pathway applies to certain requests involving fully paid interest and penalties. Taxpayers must generally have already paid the amounts they seek to recover and must base their request on the treatment of time periods affected by the COVID-19 disaster relief rules. Filers who owe additional tax or whose claims fall outside the Kwong framework still need to use paper submissions or other channels.
To use the tool, a taxpayer must have an existing IRS Online Account or create one. Access is available through the secure online account portal, where users can authenticate their identity and navigate to the digital version of Form 843. The form also appears on the IRS mobile-friendly forms index, confirming it can be completed and submitted from a smartphone or tablet without printing.
Once logged in, eligible taxpayers select the appropriate tax period and indicate that their claim is connected to Kwong. The online Form 843 prompts users to enter the type and amount of interest or penalties paid, along with an explanation referencing the COVID-19 disaster relief postponements. Supporting documentation, such as IRS notices or account transcripts, can typically be uploaded electronically, reducing the risk of lost attachments and incomplete filings.
IRS instructions emphasize that taxpayers should carefully identify the specific periods and assessments at issue. Because the statute of limitations is strict, a vague or incomplete claim could invite delays or denials that may not be fixable after July 10, 2026. Tax professionals advising clients on these claims are urging them to review their pandemic-era notices and payments now and to file protective claims where eligibility is uncertain but plausible.
What taxpayers should do now
With the deadline just days away, taxpayers who paid interest or penalties during the COVID-19 disaster relief period should act quickly. First, they should review any IRS correspondence from 2020 and subsequent years to identify charges that may have arisen while statutory deadlines were postponed. Second, they should determine whether those amounts are fully paid and potentially covered by the Kwong and Abdo interpretations of Section 7508A(d).
Those who appear eligible can then prepare and submit Form 843 electronically through their IRS Online Account, taking care to include clear explanations and any available documentation. Taxpayers who are unsure about their rights or the technical requirements may wish to consult a qualified tax professional, but the looming statute means they should not delay simply waiting for perfect clarity.
The combination of a narrow filing window, a new digital pathway, and evolving legal guidance makes this a critical moment for affected taxpayers. The IRS’s online Form 843 option removes many logistical barriers, but it does not extend the July 10, 2026 deadline. For those who paid interest or penalties that may have been improper under the COVID-19 disaster relief rules, the next eight days could determine whether they recover their money or lose the chance forever.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
