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The 2026 tax season has begun, and some Americans are turning to AI for help with their taxes. But is it a good idea?
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While Americans are probably happy to put the memory of the COVID-19 pandemic behind them, it may be worth digging into the past to see if you’re eligible for an IRS refund, tax accountants said.
Once a federally declared disaster takes effect, Section 7508A(d) of the Tax Code requires a deferral of applicable tax deadlines for the disaster period plus 60 days. Last November, a federal court ruled that the public health emergency caused by the coronavirus from January 20, 2020 to May 11, 2023 falls under this provision. Adding 60 days will result in a new tax deadline of July 10, 2023 for returns for tax years 2019, 2020, 2021, and 2022.
If the taxes were not paid, the IRS likely would not have had the right to impose penalties or interest during that period, tax attorneys said. Therefore, if you are charged fines or fees, you may be required to pay them back.
The IRS will likely appeal this ruling, but taxpayers cannot wait that long to file a claim. By law, taxpayers have a limited amount of time to request a refund or reduction of penalties and interest.
“Millions of taxpayers could potentially qualify, but if they don’t file by July 10, 2026, they will lose the possibility of a refund or reduction,” said John Wasser, a partner at Fox Rothschild who specializes in tax issues.
Who is eligible?
Lawyers said businesses and individuals who were assessed fines and interest between January 20, 2020 and July 10, 2023 may be eligible to seek restitution.
“The potential amounts could be large, especially for companies that have faced liquidity challenges and incurred large (tax) nonpayment penalties during the pandemic,” Frost Law partner Jessica Mullin said in a blog post last month.
Western Digital sued the government in February, seeking a partial refund of $53.6 million in taxes it paid in August 2023, when a tax dispute dating back to 2008 was resolved. The data storage company said it should not have been charged nearly $21 million in interest during the pandemic pause.
Why are there deadlines for claims and when are they due?
Lawyers say the statute of limitations for claiming refunds typically runs three years after the return is filed or two years from the date the tax was paid, whichever is later.
A court ruling in November suggested the tax deadline would be moved to July 10, 2023, making July 10, 2026, three years from that date, the last day a potential refund or relief claim could be held, Wasser said.
How do I know if I owe a refund?
Wasser said taxpayers should check their tax records to see if the IRS has assessed penalties or interest during the tax filing suspension. You can do this by asking a tax professional or reviewing your IRS tax return.
IRS tax account records show tax information for each year, including filing status, taxable income, and adjustments made after the original return was processed. It also displays the dates on which payments, penalties, and interest were made or assessed.
According to the IRS, tax account records can be viewed, printed, and downloaded online by registering using a personal online account, or by mail. Americans can order by mail through the IRS website or by calling the automated telephone transcription service at 800-908-9946. Arrives within 5-10 calendar days.
How do I request a refund?
Wasser said a tax professional can file a claim on a taxpayer’s behalf, or a taxpayer can use information from their tax return to file a claim using IRS Form 843, Claim for Refund and Claim for Abatement.
Lawyers say taxpayers should clearly indicate on the form that they are claiming protection under Section 7508A(d) and Kwon v. United States regarding the COVID-19 disaster period.
“You’re basically saying to the IRS, ‘I have a refund request, please hold on to it for now,'” Wasser said. Once all litigation is complete and the IRS is required to issue a refund, you have retained the right to claim your rights.
“You need to notify the IRS now,” Wasser said.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
