Millions of taxpayers have until July 10 to claim an IRS refund

The IRS may owe millions of Americans a refund, but time is running out for them to claim it. According to the National Taxpayer Advocate, taxpayers have until July 10 to request their money back. This deadline is a result of a federal judge’s ruling that the IRS should have suspended tax filing and payment deadlines during the COVID-19 disaster declaration, which lasted from January 20, 2020, through May 11, 2023. As a result, taxpayers have until July 10, 2023, to file returns or make payments, and until July 10, 2026, to claim a refund.

Taxpayers who may be eligible for a refund include those who were assessed penalties or interest during the disaster relief period, paid penalties or interest for filing or paying late during the COVID disaster period, filed international information returns late, or missed claiming a refund or other tax benefit during the COVID disaster period. To protect their rights, affected taxpayers should review their records and consider filing a refund claim, an amended return, original return, abatement request, or a protective claim.

To claim a refund for penalties or interest paid during the disaster period, taxpayers should file Form 843, Claim for Refund and Request for Abatement. If the November court ruling is appealed, taxpayers should write “Protective Refund Claim Pursuant to Kwong Case” on the form. Those seeking to change income, deductions, credits, filing status, or other items affecting their tax liability should file an original or amended return using Form 1040-X for the applicable tax year.

The law regarding the court ruling is still unsettled, and the Department of Justice may appeal the decision. However, taxpayers who fail to file a claim before July 10 risk losing out on their refund, even if the ruling is upheld. National Taxpayer Advocate Erin Collins emphasized the importance of filing a claim before the deadline, as missing it may permanently prevent taxpayers from receiving a refund they are entitled to.

In conclusion, filing a claim does not guarantee relief, but missing the deadline could mean missing out on a potential refund. It is crucial for eligible taxpayers to take action before July 10 to secure their refund.