Two court case decisions (Kwong v. United States and Abdo v. Commissioner) may create refund and abatement opportunities for certain taxpayers who were assessed and/or paid penalties and interest during the COVID postponement period which spanned from January 20, 2020 through July 10, 2023.
In some cases, this could create an opportunity to seek recovery of amounts previously paid, request abatements of penalties and interest previously charged, or file protective claims while the law continues to develop.
As of right now, the deadline for claims and abatement requests related to the COVID postponement period is July 10, 2026.
Also, the IRS recently announced a new procedure that allows certain taxpayers with disallowed ERC refund claims to request an extension of the normal two-year period to file suit after a notice of disallowance is issued. The extension must be agreed to in writing before the deadline expires. Based on the IRS announcement, this relief is being offered specifically in the ERC claim disallowance context.
If you think either of these developments may apply to you, please contact your Trusted Sax Advisor promptly so we can evaluate your facts and help preserve any potential rights.