IRS adds online option, details for Kwong-related refund claims

The IRS added an online option on its mobile-friendly forms page last week for individual taxpayers to electronically file Form 843, Claim for Refund and Request for Abatement, for protective refund claims related to the Kwong decision before a Friday deadline.

Kwong court decision

In Kwong, 179 Fed. Cl. 382 (2025), the Court of Federal Claims held that the filing deadline for refund claims for penalties and interest was automatically extended by Sec. 7508A(d) due to the COVID-19 disaster declaration. The IRS posted the notice about the portal for filing protective claims — which protect the taxpayer’s rights while the case is subject to appeal — on Wednesday.

Under the court’s reasoning in Kwong, certain periods during the COVID-19 disaster — from Jan. 20, 2020, through July 10, 2023 — could be disregarded under Sec. 7508A(d)(1) when determining filing deadlines. Some taxpayers may argue that this interpretation effectively extends the time limits for filing refund claims tied to those years.

The IRS has appealed the decision and has until July 20 to file its brief.

Online filing details

Online filing of Form 843 for a Kwong-related refund claim is open only to individuals and not to businesses, which must file a Form 843 on paper. Individuals filing Form 843 electronically must have an IRS Online Account and must write “Kwong vs. United States” across the top of the form.

The online tool is open to those who are filing a claim related to fully paid interest and penalties related to Kwong. Individuals still have the option to file a paper form.

“There’s a narrow window for taxpayers who haven’t filed a claim yet,” Glen Frost of Frost Law Firm said in a news release. “This new electronic portal creates a shortcut for people to get their refund request in before the deadline. If people paid penalties or interest during the pandemic, this is a last-minute chance to quickly file a claim.”

In a blog post on Thursday, National Taxpayer Advocate Erin Collins said the deadline is “not a fair result” for taxpayers who may be prevented from receiving a refund to which they may ultimately be entitled.

“When potential relief exists but taxpayers must know to ask for it, unrepresented taxpayers, low-income taxpayers, and taxpayers who cannot easily obtain transcripts or professional help are at special risk of losing refunds,” Collins said. “In fact, I suspect only a tiny fraction of potentially eligible taxpayers will file timely claims.”

AICPA Kwong resources

An AICPA resource page has a mix of public resources and those where member login is required. The page includes updated FAQs, which include a checklist to help CPAs determine next steps for clients related to Form 843.

— To comment on this article or to suggest an idea for another article, contact Martha Waggoner at Martha.Waggoner@aicpa-cima.com.