The 2025 decision from the U.S. Court of Federal Claims in Kwong v. United States (Kwong) clarified how mandatory tax relief provisions under former Section 7508A(d) apply to the postponement of tax and payment deadlines during federally declared disasters, specifically the COVID-19 pandemic.
In Kwong, the taxpayer sought penalty abatements for specific tax years, but the IRS rejected these requests in late 2020. After the taxpayer filed a petition in February 2023, the IRS claimed the filing period had expired. The court, however, determined that the deadline for filing remained open until at least July 10, 2023, due to the extension provided by former Section 7508A(d) covering the duration of the COVID-19 national emergency—from January 20, 2020, to May 11, 2023—plus an additional 60 days.
Congress addressed concerns about indefinite tax relief in November 2021 by amending Section 7508A(d) to limit mandatory relief to 60 days from the onset of a federally declared disaster. Further legislation in 2025 extended this mandatory period to 120 days.
Statutory deadlines govern refund claims. Section 6511 requires that refund requests be submitted within three years of filing the return or two years after paying the tax, whichever is later.
The court concluded that Section 7508A mandated extensions for tax filing and payments between January 20, 2020, and July 10, 2023. If a taxpayer’s statute of limitations expired during this window, it was extended to July 10, 2023. Likewise, if the limitation period began during this time, it would start on July 10, 2023, and end three years later, on July 10, 2026.
Taxpayers seeking refunds related to the Kwong decision should use Form 843 to submit their claims.
How to file Form 843
The IRS released new guidance for submitting Form 843, allowing taxpayers to file via regular mail or electronically using their IRS Online Account. This update is intended to streamline and simplify the submission process.
For those choosing to mail Form 843, the completed form should be sent to the address specified in the instructions. Taxpayers opting for electronic filing can log in to their IRS Online Account and follow the online steps to submit Form 843 securely.
Key Takeaways
- Tax relief is not automatic; taxpayers must actively file a claim to benefit from the ruling.
- Submitting a claim preserves eligibility, even if the final legal outcome is still pending.
- Visit the AICPA’s Kwong v. United States Frequently Asked Questions (FAQs) webpage for more information.