IRS pandemic penalty refund deadline nears as millions may qualify for money back on fees

Millions of taxpayers in the United States may be eligible for an IRS pandemic penalty refund following a legal challenge related to fees charged during the COVID-19 pandemic.

According to KSTP, individuals and businesses who paid penalties such as late fees or interest between January 2020 and July 2023 could qualify to claim money back.

The potential refunds stem from an ongoing lawsuit that argues certain tax deadlines should not have applied during the pandemic period.

“Because it was a disaster for those three years, technically the courts have said the taxes were not due at all during those times,” Jon Gustafson of Venn Tax and Bookkeeping in Blaine said.

Tax experts say those who believe they may be eligible should act quickly, as the deadline to submit a claim is July 10.

“843 is the form you will file to request that back,” Gustafson said.

“The deadline on this is July 10 of this year, so after July 10, you’re too late. You can’t request those funds. Even though you might not get it, because the IRS might win the court case. You might as well try now.”

Claimants must submit Form 843 to request a refund. However, the outcome remains uncertain as the case continues through the courts.