The IRS May Owe Your Construction Business Money — But You Have to Act Fast

Wednesday, 2026-07-01

Let me be direct with you.
If your construction business was hit with IRS penalties or interest between January 2020 and July 2023 — you may have paid money you didn’t actually owe.
A federal court just ruled that COVID disaster relief automatically extended tax filing and payment deadlines for all taxpayers. That means penalties the IRS charged you during that window? Potentially illegal.
We’re talking about:
Failure-to-file penalties
Failure-to-pay penalties
Estimated tax penalties
Interest on underpayments

Here’s a real-world example of what that looks like:
A business owner owed $100,000 in taxes due April 15, 2020. He paid on July 1, 2023 — and got slammed with $19,000 in failure-to-pay penalties and $20,000 in interest. Under this ruling? He shouldn’t have owed any of it. That’s a $39,000 refund he’s entitled to claim.
Now here’s what you need to know as a contractor:
This window is not going to stay open forever.
The IRS is going to appeal. They’re going to fight this tooth and nail because the numbers are staggering — we’re talking potentially billions in refunds. If the appeals court reverses the ruling, anyone who didn’t file a protective claim in time is out of luck.
What do you do right now?
Pull your IRS account transcripts for tax years 2019–2022
Look for any penalties or interest charged between January 20, 2020 and July 10, 2023
If you see anything — call your CPA immediately

If you ran payroll during COVID, had any late filings or late payments, or were dealing with the chaos of running a construction business during a pandemic — there’s a real chance money is sitting there with your name on it.
Don’t leave it on the table because you waited too long to check.
If you want us to pull your transcripts and review this for you, grab a spot on my calendar. This is exactly the kind of thing we do for our construction clients — find the money the IRS isn’t going to volunteer back.

👉 Book a free consultation: https://accountingsolutionsllp.com/appointment/

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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.