The Internal Revenue Service’s internal watchdog said that tens of millions of U.S. taxpayers may be owed refunds or abatements of penalties or interest during the COVID-19 federal disaster period.
“The bottom line: You may be entitled to a refund or reduction of assessed penalties and interest. For taxpayers dealing with financial pressures, these amounts can make a real difference. But most taxpayers must act by July 10, 2026, to request their potential refunds,” the National Taxpayer Advocate (NTA) said in a notice published on April 30 and updated on May 1.
The NTA said that the refunds or payments had arisen from multiple court decisions, including one handed down in November that “provides for the automatic postponement of filing and payment deadlines during the period a federal disaster declaration is in effect, plus 60 days” during the COVID-19 federal disaster period, which lasted more than three years….