Millions of US taxpayers have until July 10 to claim refunds for penalties and interest collected by the Internal Revenue Service (IRS) during the COVID-19 pandemic, according to livemint.com. This opportunity follows a recent federal court ruling that allows individuals to recover such charges dating back to tax years starting in 2020.
The process begins with taxpayers obtaining and reviewing their IRS tax account transcripts to identify penalties, interest charges, payments, refund activity, or other transactions recorded between January 20, 2020, and July 10, 2023. Taxpayers generally have three years from the applicable filing deadline to request unpaid refunds, making this deadline critical for those eligible to claim COVID-era penalty refunds.
This ruling comes as many taxpayers are still awaiting refunds from the most recent tax season, highlighting ongoing challenges within the IRS's refund processing system. The decision could provide financial relief to individuals affected by penalty and interest charges during the pandemic, a period marked by widespread economic disruption and tax filing complexities.
Taxpayers seeking to benefit from this ruling must act before the July 10 deadline to submit claims. The IRS has emphasized the importance of reviewing account transcripts carefully to ensure all eligible penalties and interest charges are identified for potential refunds.