COVID Case Relief
You May Be Able to Get a Refund of Some IRS Penalties and Interest From 2019–2023 if you act soon
During COVID-19, the IRS announced special disaster-style relief that moved certain federal tax deadlines. A recent court case has also caused the IRS and tax professionals to take a fresh look at whether some penalty and interest charges from 2019–2023 were calculated using the wrong “due date.” If the IRS used the wrong date, you may have paid penalties or interest that you didn’t actually owe—and you may be able to request a refund.
Do It Yourself Materials
What changed
Penalties and interest are often based on how many days late something was—late filing, late payment, or late estimated tax payments. During the COVID-19 period, special rules postponed certain tax deadlines. More recently, a court case has supported the idea that some of those postponed deadlines may have lasted longer than many people originally thought.
Bottom line: if your IRS notice treated you as “late” based on an earlier date, there is a chance the penalty and/or interest should be reduced—or removed—and refunded.
Which IRS charges could be affected?
This issue can potentially affect more than one type of IRS charge, including:
- Late filing penalties (you filed a return after the due date)
- Late payment penalties (you paid a balance after the due date)
- Estimated tax underpayment penalties (the IRS says you didn’t pay enough, soon enough, during the year)
Even if you filed your return on time, you might still have paid interest or an estimated tax penalty that could be worth revisiting.
Quick self-check: how to see if this might apply to you
You do not need to be a tax expert. Here’s a simple way to “self-check”:
- Find IRS notices for 2019–2023 that show penalties or interest (for example, a notice showing “penalty,” “interest,” “addition to tax,” or “estimated tax penalty”).
- Look for the tax year on the notice (2019, 2020, 2021, 2022, or 2023).
- Confirm whether you actually paid the amounts shown (bank/credit card records, IRS account transcript, or the “amount paid” shown on later IRS correspondence).
- Add up the total penalties + interest you actually paid for 2019–2023.
Simple examples (to help you compare to your situation)
Example 1: “I paid late, but I paid during COVID chaos.”
You received a notice saying you paid late and were charged penalties and interest. If the IRS measured “late” using a due date that should have been postponed under COVID relief, the penalty/interest could be overstated.
Example 2: “The IRS charged me an estimated tax penalty.”
You got a notice with an “estimated tax penalty” (sometimes shown as an “underpayment of estimated tax” charge). These penalties are based on when the IRS believes quarterly estimated payments were due and when payments were made. If the COVID postponement rules moved a due date, the penalty calculation may need to be adjusted.
Example 3: “I filed on time, but interest still showed up.”
Even if your return was filed on time, interest can appear if the IRS thinks a payment was late. If the correct due date was later than what the IRS used, the interest charge may be too high.
What we recommend (and when to contact our firm)
Step 1: Self-check your total paid penalties and interest (2019–2023).
Please focus on what you actually paid, not just what a notice originally proposed.
If your total paid IRS penalties + interest for 2019–2023 is MORE than $5,000:
Please contact us. At that level, a professional review is usually worth it. We can help evaluate the notices, the payment timing, and the best approach for requesting relief. Our minimum fee for this service is $2,500.
If your total paid IRS penalties + interest for 2019–2023 is UNDER $5,000:
In most cases, you do not need to contact our firm. We encourage a do-it-yourself approach to keep your costs down. To help, we are providing a do-it-yourself packet you can use as a model.
What is Form 843?
Form 843 is an IRS form used to request a refund or reduction of certain penalties and interest. Think of it as a written request that tells the IRS:
- what penalty/interest you are asking about,
- the tax year and form involved,
- how much you want refunded (or reduced), and
- why you believe the charge was incorrect.
The IRS may or may not grant every request. Some requests are approved quickly; others take time or require follow-up. Still, for many taxpayers, Form 843 is a practical way to ask the IRS to fix penalty/interest charges that may have been calculated using the wrong dates.
How long do I have to take action?
IRS must receive Form 843 by July 10, 2026. For a professional review, please contact our office no later than 5/28/26.
Caution
Court decisions are subject to further IRS scrutiny, potential nonacquiescence, or future limiting guidance, and there is no assurance that the IRS will extend the same treatment to all similarly situated taxpayers. While we believe the position described above is supportable, it could be challenged on examination or in subsequent IRS or judicial developments. As a result, the ultimate outcome of this position cannot be guaranteed. There is also a chance that IRS could automatically provide relief, or provide additional time to file refund claims.
What you can do next
- Gather your IRS notices (2019–2023) and proof of what you paid.
- Add up total penalties + interest actually paid.
- If under $5,000, use our do-it-yourself instruction packet as a guide to prepare your request.
- If over $5,000, contact us so we can review your situation and discuss next steps.
We know IRS notices can be stressful—especially after the last few years. Our goal is to help you take advantage of any refund opportunity that’s available, while also keeping this simple and cost-effective.
