The IRS May Owe You Money From COVID. But You Have to Ask by July 10.

I love hearing that I may be owed money. We you ever late filing your taxes during the last few years?

Here is what happened. A federal court ruled last year that the COVID-19 pandemic should have automatically paused all federal tax deadlines from January 2020 through July 2023. That means if the IRS hit you with a penalty for filing late or paying late during that stretch, they may not have had the right to do it.

Tens of millions of taxpayers could be eligible for refunds or reductions on penalties and interest assessed during that period. We are talking individuals, small business owners, freelancers, estates, and trusts. If you paid a penalty to the IRS anytime during COVID, this applies to you.

The July 10 deadline.

The catch is that nothing happens automatically. The National Taxpayer Advocate is warning that low and moderate income taxpayers are less likely to hear about this and face a greater risk of missing out on money they may be owed. That is exactly the kind of person this could make a real difference for, a working family in Pittsfield, a small business owner, a retiree who just paid what the IRS told them they owed and moved on.

To file, you need to submit IRS Form 843 and write "Protective Refund Claim Pursuant to Kwong Case" across the top. Experts recommend sending it by certified mail since there is currently no electronic filing option for these claims. -us.gov

The deadline is July 10, 2026. That is about nine weeks away. If you miss it, you likely lose the right to claim this money forever.

Talk to a tax professional if you can. If you cannot, at minimum pull up your IRS account at IRS.gov and look at what penalties you were charged between 2020 and 2023.