Key Takeaways from the Court Ruling and Sec. 7508A(d)(1)
A recent ruling by the Court of Federal Claims centers on the finding that, once the federal government declared COVID-19 a disaster, the deadline suspension/extension provisions under Sec. 7508A(d)(1) of the tax code took effect automatically, thereby extending certain filing deadlines. National Taxpayer Advocate Erin Collins issued guidance on the matter, aiming to help taxpayers understand how to take advantage of the deadline extensions triggered by the pandemic.
Editor's Note (updated July 16, 2026): This article was originally published in May 2026. The ruling discussed is the Court of Federal Claims' decision in Kwong. Based on that ruling and guidance from the National Taxpayer Advocate, the deadline for submitting related refund claims (including protective claims) was July 10, 2026, which has now passed. The government has appealed the ruling, and a final outcome is still pending. Readers who submitted claims on time should keep their supporting documentation and await processing; those who did not submit a claim should consult a professional to evaluate whether other remedies may be available in their case.
For most taxpayers, the most important implication concerns the timing rules for a claim for refund or a claim for credit. Under IRC Sec. 6511, a refund claim generally must be filed within three years of the original return or two years after payment; however, the suspension provisions of Sec. 7508A "pause" these deadlines during the disaster period, potentially extending a window that would otherwise have closed. This extension applies automatically and does not depend on the IRS issuing a separate individual notice.
From the perspective of Chinese Americans—especially those in Austin—this means that if you missed filing a refund claim or failed to amend a return in time during the pandemic, you may still be considered to have filed within the statutory period. For example, various tax adjustments or unclaimed refunds from 2019 and 2020 have, as a result, regained a window for appeal (such claims generally needed to be filed by July 10, 2026). If foreign accounts or cross-border income are involved, you should also check whether FBAR or other foreign reporting obligations apply—see our FBAR Filing Guide for details.
YZ CPA Note: Don't panic—work through this step by step. First, review your filings and payment records from 2019–2021 to identify which items may be affected by Sec. 7508A. Second, gather supporting documentation (such as proof of payment, mailing records, and a timeline of disaster declarations), which is critical when asserting that a deadline was suspended. Third, if necessary, file an amended return (Form 1040X) or a formal refund claim, citing the applicable facts under Sec. 7508A(d)(1) in your explanation. If you're unfamiliar with the process, refer to our Tax Filing Guide for Chinese Taxpayers or browse related analysis in our Tax Insights column.
Two practical points are worth noting. First, don't interpret "automatic extension" as an indefinite one—you should still act promptly and preserve evidence. Second, in some cases interest and credit rules may be affected, or coordination with state tax filings may be required, which can add procedural complexity. For our Austin-based Chinese clients, an early assessment can help avoid losing rights due to a missed deadline.
Our overall recommendation: if you suspect you missed a refund deadline during the pandemic, gather your documentation first and consult a professional to confirm whether you may be able to invoke the protections of Sec. 7508A. Handling these cases requires careful calculation of deadlines, citation of applicable statutes, and preparation of documentation—especially when foreign assets or multi-year adjustments are involved. Consider working with a CPA experienced in U.S. tax law.
For professional tax assistance, please visit our YZ CPA Services page or contact us.