IRS July 10 Deadline Passes: Millions Miss COVID Tax Refund Claims

The July 10 deadline to claim IRS refunds tied to COVID-era penalties has passed. A federal court ruled that the IRS should not have assessed late-filing penalties, late-payment penalties, or interest during the January 20, 2020 to July 10, 2023 disaster period. Tens of millions of Americans may have been eligible, but the relief required filing a claim by yesterday and was not automatic.

What the Kwong court ruling changed

In November 2025, a federal court in Kwong v. United States ruled that a tax code provision automatically extended filing and payment deadlines for the full duration of the COVID-19 disaster declaration plus 60 days, through July 10, 2023. The IRS had treated the pause as much shorter. Under the court’s logic, any penalties or interest the IRS assessed during that 3.5-year window should never have been charged. The Department of Justice is expected to appeal the ruling.

Who could claim a refund

Eligible taxpayers included anyone assessed penalties for failure to file, failure to pay, or failure to make estimated tax payments between January 2020 and July 2023. The refund also covered interest that accrued earlier than it should have, or overpayment interest tied to that disaster period. According to the Taxpayer Advocate Service, tens of millions of Americans, including individuals, small businesses, and large corporations, fell into these categories.

Why the July 10 deadline mattered

Taxpayers generally have three years after filing a return, or two years after paying a tax, penalty, or interest bill, to claim a refund. Because the court ruled the filing deadline should have extended to July 10, 2023, affected taxpayers had until July 10, 2026 to request a refund or file a protective claim, according to National Taxpayer Advocate Erin Collins. Relief did not happen automatically. Most taxpayers had to file a claim themselves to protect their rights.

How to file after the deadline

The IRS recently made it possible to submit claims online through its website, rather than requiring mailed forms. However, with the July 10 deadline now passed, taxpayers who missed it face a much harder path. Consulting a tax professional or the Taxpayer Advocate Service about options after the deadline is advisable.

Final Thoughts

The July 10 deadline to claim COVID-era IRS refunds has expired. Taxpayers who missed it may still have limited options, but the automatic three-year or two-year window for refunds has closed. Those who believe they qualify should seek professional tax advice immediately.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.