IRS COVID Refund Deadline 2026: Who Qualifies, How to Apply, and Why July 10 Matters

Tens of millions of American taxpayers might be authorized for refunds for interest and penalties assessed wrongfully during the COVID-19 pandemic. However, individuals must file claims by July 10, 2026, to request refunds. Read on to understand more about the IRS COVID-19 Refund deadline claim 2026. 

The July 10, 2026, IRS COVID-19 Refund deadline stems from a November 2025 court ruling in Kwong v. United States. That ruling revisited how federal disaster rules apply to tax filing deadlines. The ruling found that the IRS wrongly imposed penalties throughout the entire COVID-19 period.

According to the National Taxpayer Advocate, IRC § 7508A(d) provided for the automatic postponement of filing and payment deadlines by 60 days when a federal disaster declaration is in effect. For tax purposes, this federal disaster declaration lasted from January 20, 2020, to May 11, 2023, during the COVID-19 pandemic.

According to the court’s ruling in the Kwong case, “filing and payment deadlines were postponed during that entire period, and as a result, tax returns and payments due anytime within that window were not late until after July 10, 2023. By the court’s logic, the IRS should not have assessed penalties for late filing or payment during that 3.5-year period, nor charged interest on those amounts,” notes National Taxpayer Advocate. 

If the IRS follows the court’s decision in the Kwong case, it could mean that millions of Americans would be entitled to refunds or abatements of certain penalties assessed during the COVID-19 era. 

As per the National Taxpayer Advocate, these amounts include (a) penalties assessed for failure to file returns on time, failure to pay taxes, or failure to make estimated tax payments; (b) Interest that began accumulating earlier than it should have, or not at all; (c) interest that was overpaid for the 2020-2023 disaster period. 

The effect of the decision on taxpayers will be felt at all taxpaying levels, which include individual taxpayers, corporations, partnerships, trusts, and estates. Moreover, the decision will have an effect on taxpayers having filing requirements under employment tax, income tax, estate tax, gift tax, and excise tax. Late filers of international information returns will also qualify for refunds.

However, taxpayers should file claims by July 10, 2026, to request their potential refunds. They generally need to file their claim within three years from the date they filed their tax return or two years from the date they paid their tax. 

To file the claim, taxpayers must complete and submit Form 843, Claim for Refund and Request for Abatement. As the law is still under litigation, taxpayers can consider filing protective claims as well. A protective claim allows taxpayers to preserve their rights to refunds while the law is still uncertain. 

According to the National Taxpayer Advocate, “taxpayers would need to file a Form 843, write ‘Protective Refund Claim Pursuant to Kwong Case’ or something similar across the top, and fill in as much detail as possible.”

The IRS has not fully accepted the court’s interpretation in the Kwong v. United States case, and the ruling could still be appealed. Still, taxpayers may not have the luxury of waiting as the July 10, 2026, deadline for the IRS Covid Refund approaches.

Low- and moderate-income taxpayers may lack the information and legal help they need. Without that support, they risk missing a key chance to claim refunds they are owed.