July 10, 2026 tax cutoff: IRS warns some COVID-19 refund claims need action

July 10, 2026 is the fast-approaching “protect your claim” cutoff for some taxpayers who may be able to recover COVID-19 disaster-relief overpayments or reduce penalties and interest tied to late filings or payments, the National Taxpayer Advocate’s office at the IRS says.

The Advocate warns that missing the deadline can permanently block relief, even if the Kwong v. United States decision is ultimately upheld. In other words: if your situation falls within the Kwong framework, timing your claim may be as important as the underlying dispute.

What the July 10, 2026 cutoff is

The Advocate explains that, in most cases, taxpayers must file a claim for credit or refund within the later of three years from when they filed their return, or two years from when they paid the tax, penalty, or interest. But if, under the Kwong reasoning, affected returns or payments are treated as due on July 10, 2023, then July 10, 2026 becomes a critical deadline for many refund or protective claims.

The Advocate also stresses that relief is not automatic: many taxpayers may need to file a refund claim, amended return, original return, abatement request, or a protective claim to preserve their rights.

Who may be affected at the household level

According to the Taxpayer Advocate’s guidance, the potentially relevant group may include taxpayers who:

• Filed a return during the COVID-19 disaster relief postponement period and were assessed penalties or interest related to that return;
• Paid, or still owe, penalties or interest for filing or paying late during that period;
• Filed late international information returns; or
• Believe they may have missed other refund opportunities or refundable benefits for tax years affected by the COVID postponement period.

If Kwong-related reasoning ultimately applies to a particular taxpayer’s facts and the appropriate, timely claim is filed, relief described by the Advocate could include refunds or abatements of penalties and interest assessed for late filings or payments during the roughly 3.5-year COVID-19 period the court addressed. The Advocate also describes a potential spillover to some taxpayers who missed refund opportunities for tax years 2019 through 2022.

How to protect your rights (refund vs. protective claim)

The Advocate says taxpayers may need to take proactive steps depending on whether they need to change the underlying tax liability or just preserve the dispute while the law is unsettled.

For Kwong-related penalty and interest claims, the Advocate generally points taxpayers to Form 843, Claim for Refund and Request for Abatement. If a taxpayer needs to change income, deductions, credits, filing status, or other items that affect tax liability, the Advocate says they generally should file an original or amended return instead of using Form 843.

For some taxpayers with an IRS Online Account, the Advocate notes an online option to submit Form 843 electronically for claims related to fully paid interest and penalties. If filing by mail, the Advocate instructs taxpayers to label the Form 843 as related to Kwong v. United States.

A protective claim is also an option when the law is unsettled, and the Advocate says it can help preserve refund rights while awaiting final resolution.

What’s still uncertain

Even with a hard deadline, there is uncertainty about how relief will be delivered in practice. The Taxpayer Advocate Service report says the IRS may receive a significant volume of Kwong-related claims and that standardized processing steps have not yet been established.

The report also describes operational friction: many Form 843 submissions may be handled on paper and processed manually, potentially creating delays. It also notes taxpayers may not receive reliable online tracking after submitting paper claims, which could make it harder to time follow-up actions for household budgeting purposes.

What to do before July 10, 2026

• Review your COVID-19-era filing and payment timeline and identify any penalties or interest the IRS assessed during the postponement period.
• Compare your records to the Taxpayer Advocate’s description of potentially eligible situations under the Kwong framework.
• If you may need a claim to preserve rights, plan to submit it by July 10, 2026 and follow the Advocate’s Form 843 and labeling instructions.

For the most accurate steps, rely on the IRS and Taxpayer Advocate materials tied to the Kwong deadline and Form 843 requirements.

Sources

• IRS Newsroom: National Taxpayer Advocate issues 2026 mid-year report to Congress (introducing TAS priorities, including Kwong-related taxpayer-rights protection)
• National Taxpayer Advocate blog: “Act on or before July 10, 2026 to protect potential COVID-19 disaster relief refund claims”

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