Tax Tip #301

As a result of a federal court decision in the Kwong case, taxpayers who filed 2019 through 2022 tax returns and paid penalties and/or interest for the period of 1/20/20 through 7/10/23 may be eligible for a refund.

Why the possibility? The IRS has appealed the court’s decision. If the IRS wins the appeal, there will be no refund opportunity. If the IRS loses, taxpayers may be entitled to a refund opportunity. However, if you wait for the appeal decision, it will be too late as the statute of limitations expires 7/10/2026.

To preserve a potential refund claim, taxpayers should file Form 843, Claim for Refund and Request for Abatement, by July 10, 2026.

If you need assistance, please reach out to a team member.