Is the IRS Holding Your Money?

    As an Enrolled Agent helping people navigate the often-confusing world of tax resolution, I’ve seen a lot of IRS shifts. But none are quite as significant right now as the fallout from the Kwong v. United States court case.

    If you paid penalties or interest to the IRS between January 20, 2020, and July 10, 2023, you might be sitting on a substantial refund. However, there is a catch: you have a hard deadline of  July 10, 2026, to claim it.

What is the Kwong Case?

    In a landmark decision, the U.S. Court of Federal Claims ruled that because of the COVID-19 national emergency, certain tax deadlines were automatically postponed by law.

    The court found that under Section 7508A of the Tax Code, the "disaster period" for COVID-19 lasted from January 2020 through May 2023, plus an additional 60-day grace period. This effectively moved many tax deadlines to July 10, 2023.

    The result? If the IRS charged you for "late" filings or payments that actually occurred during that window, those penalties and the interest on them may have been assessed illegally.

The Oklahoma & State Ripple Effect

    It isn't just a federal issue. Because many state tax authorities conform to IRS deadlines and statutes, this ruling could trigger a "ripple effect" on a local level.

    For our local Oklahoma clients, this is especially critical. We specialize in navigating the specific conformity rules of the Oklahoma Tax Commission. If the state follows the federal lead on disaster-related postponements, you may be eligible for an Oklahoma state tax refund in addition to your federal one. We handle the heavy lifting for our neighbors here in Oklahoma to ensure no money is left on the table at the state capital.

What Can You Recover?

This isn't just about small change. We are looking for:

    Failure-to-File Penalties: If you filed late during the pandemic.

    Failure-to-Pay Penalties: If you owed money but couldn't pay immediately.

    Underpayment Interest: The interest the tax authorities tacked onto those unpaid balances.

 Are You Eligible?

Eligibility is broad but requires a technical review of your tax transcripts. Generally, you may be eligible if:

1. You are an individual, business owner, or even a nonprofit.

2. You had a tax obligation due between January 20, 2020, and July 10, 2023.

3. You paid penalties or interest related to those years.

How Much Can You Get Back?

    Refund amounts vary wildly depending on your tax liability. For some small business owners, this could mean $5,000 to $10,000; for larger entities or high-net-worth individuals, the numbers can reach six figures.

    Our Promise: We can perform a deep-dive transcript audit to check your eligibility. We won't just guess—we’ll provide a concrete estimate of exactly how much you could get back before we file the claim.

The Clock is Ticking: July 10th Deadline

    Taxing authorities are not going to send this money back automatically. You must file a formal (or "protective") refund claim. Because of the three-year statute of limitations tied to the new July 2023 deadline, most taxpayers lose their right to this money after July 10, 2026.

Don't let the government keep money that rightfully belongs in your pocket. As a local Oklahoma tax resolution firm, we specialize in exactly these kinds of recovery actions.

    Contact us today for a transcript review and let’s see what you're owed. 




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