If you filed a Form 843 claim for a refund of COVID-era IRS penalties, do not expect a check soon. The government has appealed the court ruling behind these claims — Kwong v. United States — to the Federal Circuit, and the IRS is expected to hold refund payments until the appeal is resolved. Your claim is not lost; it is parked.
As of July 2026, the filing window has closed for most taxpayers (the widely reported deadline was July 10, 2026). Here is what happens to claims that made it in, and what the appeal means for the money.
What did Kwong v. United States decide?
A federal court found that COVID-19 emergency declarations automatically postponed tax filing and payment deadlines for the full disaster period — January 20, 2020 through July 10, 2023. If that holds, many penalties the IRS charged during that window were invalid.
The scale is large: the IRS assessed more than 120 million penalties in that period for late filing, late payment, and missed estimated tax payments. The ruling opened the door for affected taxpayers to request refunds or abatement of those penalties and related interest. We covered the deadline itself in what the July 10 COVID-era refund deadline passing means.
What happens to your Form 843 claim now?
Your claim sits as a protective claim. That is its entire job: it preserves your legal right to the refund while the appeal plays out. Filing before the deadline froze your place in line — even if the final court decision comes years from now, a timely claim keeps you eligible.
Practical steps while you wait:
- Keep a copy of the Form 843 (or the online submission confirmation) and proof of the penalty payments it covers.
- Do not refile. Duplicate claims do not speed anything up.
- Watch for IRS mail. If the IRS needs anything or formally disallows the claim, it will notify you in writing — a disallowance during the appeal period is procedural, not necessarily final.
How long could the appeal take?
Realistically, years. The case is before the U.S. Court of Appeals for the Federal Circuit, and tax professionals following it note the ultimate outcome may not be known for a long time. The IRS has no obligation to pay refunds while the ruling is under appeal, and most observers expect it to wait for a final decision.
There is no action you can take to accelerate this. The timeline is the court’s.
What if you missed the July 10 deadline?
For most people, the window is closed — refund claims generally must be filed within three years of the return or two years of paying the tax, and July 10, 2026 marked three years from the end of the disaster period. One narrow exception: if you actually paid a COVID-era penalty recently, your two-years-from-payment window may still be open. That is worth a conversation with a tax professional rather than a guess.
If you owe the IRS other money, different tools apply — see IRS payment plans in 2026 and why tax refunds get taken by the Treasury Offset Program.
Will you owe anything if the appeal fails?
No. If the appeals court overturns Kwong, your claim is simply denied — you keep nothing, but you owe nothing new. Filing the claim carried no downside beyond the paperwork. That asymmetry is exactly why tax professionals urged protective filings before the deadline.
FAQ
Q. Will the IRS confirm it received my claim?
A. Paper Form 843 filings do not generate an automatic receipt. If you filed through your IRS Online Account, the submission appears in your account records.
Q. Will refunds include interest if the ruling is upheld?
A. Refunds of overpaid penalties generally accrue interest, but the exact treatment will depend on the final decision and how the IRS implements it. No official guidance exists yet.
Q. Can I still file a claim for penalties I paid in 2024 or later?
A. Possibly — the two-years-from-payment rule may keep your window open. Confirm your specific payment dates with a tax professional.
Q. How will I know when the appeal is decided?
A. Major tax outlets will cover it, and the IRS will publish guidance on IRS.gov once there is a final outcome.
Source: IRS – About Form 843