IRS Could Repay Pandemic Refunds to Millions of Americans
A federal ruling may entitle millions to IRS refunds for pandemic-era penalties and interest. Learn who qualifies and how to claim before deadlines pass.
financebuzz.comDirect answer: There have been multiple updates over the past few years about pandemic-era penalty relief, with a notable IRS program in 2022 that automatically refunded or abated penalties for qualifying 2019–2020 returns. More recent coverage in 2026 discusses ongoing refunds and a deadline to file claims for pandemic-era penalties, driven by new court decisions and watchdog audits.
Key points to know now:
- The 2022 automatic relief: The IRS provided broad-based penalty relief for certain late 2019 and 2020 returns, with about 1.6 million taxpayers receiving over $1.2 billion in refunds or credits automatically. This relief was automatic and did not require applications; eligible penalties were abated or refunded if already paid [IRS notice and newsroom coverage from 2022].[1][2]
- 2023–2024 developments: The IRS expanded penalty relief to additional 2020–2021 filings in some contexts, aiming to reduce backlogs and support taxpayers, with fixed deadlines tied to specific relief notices [IRS press releases in 2023].[4]
- 2026 updates and deadlines: Several outlets report that millions may still be owed refunds for pandemic-era penalties, triggered by court rulings and ongoing audits. A common thread is that taxpayers who paid penalties or late fees during the pandemic may need to file a claim (often using Form 843) by a defined deadline (commonly around July 10 of the given year) to pursue refunds, and that some relief is not automatic depending on the specific penalty and circumstances (e.g., ongoing litigation, fraud, offers in compromise) [2026 coverage from CNBC, AJC, and finance-focused outlets].[5][6][8][9]
- How to check eligibility now: If you paid late filing or late payment penalties during the pandemic, you should review whether you qualify under current court decisions or agency guidance, and whether the relief is automatic or requires you to file a claim. Use Form 843 to request refund of penalties where applicable, and watch for deadlines like July 10, 2026 (these deadlines are subject to change by year and ruling) [news coverage 2026].[6][8][9]
Illustration: If you paid a late filing penalty for a 2020 return and you later learn a court ruling supported pandemic-era relief, you would typically file Form 843 to request the penalty refund, and you would aim to do so before the deadline (often July 10) to preserve your claim.[9][6]
Would you like me to check current, location-specific guidance for you (Dallas, TX), or help you determine your likely eligibility and the exact filing deadline for this year? I can also pull the latest official IRS notices and summarize what applies to you.