If you paid IRS penalties or interest during COVID (March 2020 – July 2023), you have until July 10 to get that money back.

Here’s what happened:

A federal court ruled in Kwong v. United States that the IRS shouldn’t have assessed penalties during the COVID federal disaster period. Tens of millions of taxpayers—especially small businesses—are now entitled to refunds.

But there’s a catch: **You must file a protective claim on Form 843 by July 10, 2026.**

Miss this deadline, and you permanently forfeit your right to the refund—even if the final ruling goes in your favor.

What contractors need to do:

✓ Check if you paid late-filing or late-payment penalties between March 2020 and July 2023
✓ File Form 843 marked “Protective Refund Claim Pursuant to Kwong Case”
✓ Do it NOW—don’t wait until July 9

This isn’t automatic. If you don’t file the protective claim, you get nothing.



Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.