Media outlets and the National Taxpayer Advocate previously flagged an important deadline: in connection with the Court of Federal Claims case Kwong, the last day for taxpayers to file a refund claim (Form 843) for penalties and interest paid during the COVID era is July 10, 2026. It should be noted that this "recovery" opportunity applies to penalties and interest already paid during the pandemic period, not to unclaimed tax credits.
Editor's Note (updated July 16, 2026): The July 10, 2026 deadline noted above has now passed, and the Kwong case remains on appeal. The original article incorrectly grouped the EITC, CTC, the Recovery Rebate Credit (RRC), and the Employee Retention Credit (ERC) together under this deadline — the filing windows for the RRC and ERC actually closed on April 15, 2025. This has been corrected below.
Specific Impact on Chinese Americans
For many Chinese Americans, this deadline meant that taxpayers who paid penalties or interest during the pandemic due to late filing or late payment had an opportunity to recover those amounts before the cutoff. It's important to distinguish this from other widely discussed pandemic-era recovery programs — such as the Recovery Rebate Credit (RRC) and the Employee Retention Credit (ERC) — which are subject to their own separate deadlines. Their filing windows closed on April 15, 2025, and they fall outside the scope of this July 10 deadline. Likewise, routine corrections such as fixing errors on a Form 1099-G received for unemployment income are handled through an amended return (Form 1040-X) under the normal statute of limitations, and are also unrelated to this deadline.
Note that whether a recovery is possible generally depends on the statute of limitations for retroactive claims, as well as whether the specific item falls within the scope of the relevant court ruling and IRS guidance.
Notes for Business Owners and the Self-Employed
For Chinese Americans who run small businesses or work as independent contractors: if your business paid late-filing or late-payment penalties or interest on payroll taxes during the pandemic, you may also be eligible to file a Form 843 refund claim. This typically requires supporting documentation such as penalty notices and payment records. As for the ERC itself, its filing window has already closed — don't be misled by third-party promotions claiming you can "still apply for the ERC."
Whether you're an individual or a business, organizing your tax returns, penalty notices, payment records, and correspondence related to pandemic relief from the past few years is the foundation for verifying whether you're affected. For more on common tax filing questions, see our Tax Insights section and our full Chinese Tax Filing Guide.
On Foreign Assets and Reporting Obligations
If you have foreign accounts or had cross-border income during the pandemic, don't forget to also review your FBAR (Foreign Bank Account Report) and related filing obligations. If needed, refer to our FBAR Filing Guide to avoid missing anything.
YZ CPA Note
1) This deadline has passed: if you filed a Form 843 refund claim before July 10, 2026, keep all supporting documentation and watch for the IRS response as well as developments in the Kwong case appeal. 2) If you did not file, start by organizing your tax returns, penalty notices, and payment records from recent years, and have a professional evaluate whether other standard relief options are available. 3) When it comes to correcting employer tax returns or making multi-year adjustments, improper handling can trigger an audit — it's advisable to work with an experienced accountant. 4) Also be aware of potential state tax implications: Texas has no personal income tax, but readers with filing obligations in other states should check accordingly. 5) Beware of scam calls and emails — the IRS will not call out of the blue demanding bank information or immediate payment.
For friends in the Austin area, especially Chinese American taxpayers facing complex correction procedures for the first time, consulting a professional promptly can provide peace of mind. Whether you're reviewing your personal penalty records or your business needs help organizing payroll tax documentation, the Austin Chinese CPA team can provide document checklists, form preparation, and support communicating with the IRS.
For professional tax assistance, please visit the YZ CPA Services page or contact us.