What Happened? Why the July 10 Deadline Mattered
The IRS previously reminded certain taxpayers that if they were charged penalties and interest for late-filed returns or late tax payments during the pandemic, they needed to submit a refund claim before July 10, 2026, in order to preserve their right to recover those amounts. This deadline stemmed from the U.S. Court of Federal Claims' November 2025 ruling in Kwong v. United States, in which the court found that, under Internal Revenue Code Section 7508A(d), the COVID-19 national disaster declaration automatically postponed certain tax deadlines from January 20, 2020, through July 10, 2023 — including the deadline for claiming refunds of penalties and interest. It's important to clarify that this is unrelated to Economic Impact Payments or the Recovery Rebate Credit: those catch-up windows closed separately on May 17, 2024 (for tax year 2020) and April 15, 2025 (for tax year 2021).
Editor's Note (updated July 16, 2026): This article was originally published in May 2026, before the deadline discussed above had passed. That deadline expired on July 10, 2026, and the IRS's appeal of the Kwong decision remains pending. The article below has been revised to a retrospective explainer and corrects an earlier passage that conflated this refund with pandemic relief payments.
What This Means for the Chinese Community in the U.S.
Many Chinese families filed their tax returns late or paid taxes late between 2020 and 2021 due to the pandemic, changes in immigration status, or unfamiliarity with the U.S. tax system, and subsequently paid the IRS failure-to-file penalties, failure-to-pay penalties, and related interest. Under the reasoning in the Kwong decision, these penalties and interest may fall within the scope of amounts eligible for refund. For friends in Austin — especially those who had a difficult filing experience in 2020 or 2021 and paid such penalties — it's worth checking your IRS payment records.
Required Documentation and Common Questions
Claims are submitted using Form 843 (Claim for Refund and Request for Abatement), with a notation referencing Kwong v. United States at the top of the form, per guidance from the Taxpayer Advocate Service; the IRS also made an online submission tool available to some taxpayers. Documentation needed includes your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), a detailed record of penalty and interest payments from your IRS account, and tax filing records from the relevant years. Because the IRS has appealed the case, these filings are considered protective claims — intended to preserve your rights before the ruling becomes final.
A Note for Nonresidents and Taxpayers with Foreign Accounts
For nonresidents in the U.S. or taxpayers with foreign financial accounts, when reviewing historical tax records, you should also consider whether you need to catch up on Foreign Bank Account Reports (FBAR). If foreign assets are involved, please refer to our FBAR Filing Guide to avoid running into other compliance issues while handling your refund claim.
How to Proceed: Filing and Amended Returns
If you submitted a protective Form 843 claim before July 10, 2026, the main thing now is to keep your proof of submission and wait for the outcome of the appeal. If you did not submit one in time, that deadline has now passed, and there is currently no universal remedy available; whether your individual case has other options should be determined by reviewing your records with an accountant. We've also put together a beginner-friendly overview for your reference: Tax Filing Guide for the Chinese Community. In addition, if you'd like more background on the policy or case analysis, please check out our Tax Insights column.
Practical Steps for Chinese Taxpayers in Austin
In practice, we recommend first logging into your IRS Online Account to review your historical payment and penalty records to confirm whether you may be affected, while also keeping your identification documents and tax filing records on hand. For those who have already submitted a claim, please keep your submission receipt safe and monitor the final outcome of the Kwong appeal. As an Austin Chinese CPA firm, our advice is that having complete, well-organized records greatly simplifies any follow-up down the line.
YZ CPA Note
1) Review your tax filings and IRS payment records from the pandemic years to confirm whether you paid failure-to-file or failure-to-pay penalties and interest; 2) If you submitted a protective claim before July 10, 2026, keep your proof of submission and follow the case's progress; 3) If you missed the deadline, don't mail in materials on your own — check with an experienced accountant about your individual situation first; 4) If foreign accounts or complex immigration status are involved, consult a professional first to avoid creating new compliance issues.
For professional tax assistance, please visit our YZ CPA Services page or contact us.