There are a lot of Americans that have moved past the pandemic, but it could still affect them financially today, according to tax experts who believe tens of millions of people may have failed to receive a tax refund from the IRS based on the way the tax deadlines were administered and that there was a federal court ruling that found the pandemic period constituted a federally declared disaster and therefore tax deadlines should have been extended!
What the Court Ruling Means
Disaster relief periods under tax law allow for extended deadlines for filing taxes by 60 days. In the case of this disaster relief period, it ran from January 2020 to May 2023, which extended the final deadline to July 10, 2023; as such, many experts believe that the IRS may not have been able to assess penalties or interest on amounts due during this period. Taxpayers who were charged additional penalties or interest may be able to recover those amounts.
Who Can Claim a Refund
Individuals and businesses who incurred penalties or interest from January 2020 through July 2023 may be eligible for restitution. Businesses that were financially burdened due to the COVID-19 pandemic may also be eligible for reimbursement. Several businesses have already begun litigation to recover large amounts of money; this demonstrates that the seriousness of this matter should not be underestimated.
Important Deadline to Remember
There is a limited amount of time to take action on tax refunds. Taxpayers must submit claims by July 10, 2026, or risk forfeiting their ability to receive tax refunds. Claims can only be filed based on the statute of limitations set forth in the law governing tax refund capabilities, which are generally measured from the time that a tax was paid or from the date that a tax return was submitted.
How to Check and Claim
To see whether or not taxpayers can qualify for any type of refund, they need to check their tax history or get an IRS tax transcript. This document will tell them what penalties were applied against them, what interest was charged, and what payments were made. If it looks to the taxpayer like they may receive a refund, they can still file a claim through the appropriate form. Professionals recommend that they submit claims regardless of whether the issue is fully resolved or not so that they are able to receive something later on.