IRS Penalty Refund: Claim Your Money Back Before July 2026
IRS Penalty Refund: Claim Your Money Back Before July 2026
Did you pay IRS penalties or interest on a return filed between January 20, 2020 and May 11, 2023? If so, you may be entitled to a refund. However, most business owners have no idea this window even exists. Here is what happened, who qualifies, and exactly what to do before the deadline.
What the Court Ruling Actually Means
During the COVID-19 disaster period, the IRS kept charging late-filing penalties and interest. Businesses were shutting down. Records became inaccessible. The entire economy was in crisis. Yet the IRS kept sending penalty notices anyway.
A recent court ruling found this was wrong. As a result, millions of taxpayers paid money they didn’t legally owe. The good news? A formal process now exists to claim that money back. The bad news? The window closes permanently on July 10, 2026.
Do You Qualify?
You may be eligible for a refund if any of the following apply to tax years 2019 through 2022:
- Late filing resulted in a failure-to-file or failure-to-pay penalty
- Interest on a balance due was charged during that period
- Estimated-tax penalties hit your account for 2019–2022
- A penalty abatement request came back denied
- An amended return triggered new penalties or interest
- Any IRS penalty notice arrived for tax years 2019 through 2022
Most importantly: if your total tax due exceeded $3,250 in any single year — or $13,000 across 2020–2023 combined — this is almost certainly worth pursuing. The penalties and interest on balances that size add up quickly. In other words, the refund can be substantial.
How to Claim Your Refund
Recovering these penalties requires filing Form 843 — one form per tax year, on paper. For example, penalties across 2020, 2021, and 2022 means three separate forms. E-filing is not an option, and specific documentation must support each claim.
Furthermore, the deadline is July 10, 2026. No extensions exist. No exceptions apply once that date passes.
How Custom Accounting CPA Can Help
Navigating IRS paperwork takes time and expertise. Getting it wrong can cost you the refund entirely. However, you don’t have to handle this alone. We offer two options depending on your situation:
1. Full Review & Amendment Our team pulls your IRS transcripts for 2020–2023. Next, we identify any missed deductions or credits and amend your returns. Finally, we file Form 843 with a Power of Attorney — handling the IRS directly so you never have to pick up the phone.
2. Original Filing + Claim Some business owners never filed returns for those years. In that case, our team prepares and files your original returns. Additionally, we submit Form 843 plus the POA at the same time, maximizing your refund opportunity.
Learn more about our full range of tax planning and CPA services at Custom Accounting CPA — Tax Planning Services in Manhattan.
Don’t Wait on This
July 10, 2026 sounds far away. It isn’t. Gathering transcripts, reviewing returns, finding missed deductions, and preparing paperwork all take time. Therefore, starting early gives you the best outcome.
Spots are limited. Act now — before the window closes forever.
👉 Book your free consultation today: Click Here to Book a Free Call
About Custom Accounting CPA Custom Accounting CPA specializes in proactive tax planning and reduction strategies for business owners in the medical, real estate, and entertainment industries. Our clients typically save $20K+ annually through strategic tax planning, bookkeeping, and IRS representation.
