IRS May Owe You a COVID-Era Tax Refund — Here’s the Deadline to Claim It

Millions of taxpayers could still be owed money tied to the COVID-19 pandemic, but time is running out to claim it.

A recent legal interpretation tied to federal disaster rules suggests that some penalties and interest charged during the pandemic years may not have been valid.

If you paid those extra charges, you may be eligible for a refund from the Internal Revenue Service (IRS).

Why You Could Be Owed Money

During the pandemic, the federal government declared a national emergency. Under tax law (Section 7508A), this triggers a pause on certain tax deadlines.

• The COVID-19 emergency lasted from January 20, 2020 to May 11, 2023

• The law adds an extra 60-day extension after the emergency ends

• That would push certain tax deadlines to July 10, 2023

According to tax experts, this means:

• Some penalties or interest charged during that period may not have been enforceable

• Taxpayers who paid those charges could be entitled to refunds

Deadline to File a Claim

Even if you qualify, you must act quickly.

Final deadline to request a refund: July 10, 2026

After this date, you may lose the chance to recover any money owed.

Read: Struggling With IRS Tax Debt? The Fresh Start Program May Help in 2026

Who May Qualify

You could be eligible if you:

• Paid penalties or interest on federal taxes

• Were charged between January 20, 2020 and July 10, 2023

• Filed taxes for years such as 2019, 2020, 2021, or 2022

This applies to both:

• Individual taxpayers

• Businesses that faced financial strain during the pandemic

For some businesses, the potential refunds could be significant, especially if large penalties were applied.

What You Should Do Next

If you think you may qualify, consider taking these steps:

• Review your tax records for any penalties or added interest

• Check IRS notices or past filings

• Speak with a tax professional or accountant for guidance

• File a refund claim before the deadline

One Important Note

The IRS may still challenge or appeal this interpretation. However, experts say eligible taxpayers should file claims now to protect their right to a refund.

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