The National Taxpayer Advocate has warned and urged all tax practitioners to take note of the Kwong decision as tens of millions of taxpayers may be entitled to refunds. In essence, the Kwong decision allows taxpayers to claim a full refund of interest and penalties assessed by the IRS for issues arising from January 20, 2020 through May 11, 2023 during the COVID-19 pandemic federal disaster declaration period. Since a 60-day extension is allowed, the final due date to file a refund claim is generally going to be July 10, 2026 for most taxpayers.

Although this is currently under appeal, if you wait until a final decision is promulgated, you will have lost the opportunity to file a claim even if the matter is decided in the taxpayer's favor because the statute of limitation will prevent you from filing a claim at that later date. So, DON’T DELAY – FILE TODAY!

The following are few important items to note:

• Affected taxpayers include individuals, small businesses, large corporations, estates and trusts.
•  To file a claim, the Form 843 “Claim for Refund and Request for Abatement” must be filed. This seminar will analyze and illustrate Form 843 line-by-line!
• You CANNOT file electronically - only paper forms are allowed!
• While an actual dollar amount need not be stated, the NTA suggests that one write on top of the Form 843 “Protective Refund Claim Pursuant to Kwong Case” and give general information relating to the dates and amounts subject to the refund.
• This will probably not affect state and local taxes.