You could be owed COVID money from IRS but time to claim it is running out

Tens of millions of taxpayers may be sitting on unclaimed cash, but the clock is officially ticking. You could be eligible for a significant refund from the IRS related to COVID-19 tax penalties, and 205focus.com is here to help you understand how to claim it.

Why are refunds available?

This potential windfall is the result of a February federal court ruling. The court determined that the IRS lacked the legal authority to assess interest and penalties on tax underpayments until 60 days following the conclusion of a disaster period.

Because the COVID-19 public health emergency lasted from Jan. 20, 2020, through May 11, 2023, the law effectively pushed the tax deadlines for 2019, 2020, 2021, and 2022 filings to July 10, 2023. If you were assessed penalties or interest between the start of the emergency and that July 2023 deadline, you may be entitled to a refund.

How to claim your money

These refunds are not automatic. If you believe you were unfairly charged interest or penalties during that window, you must take action to get your money back. The IRS requires taxpayers to file Form 843 to request a refund.

To determine if you are eligible, audit your tax filings from the affected years to see if you paid or were held liable for interest or penalties. Time is limited: you must submit your claim by July 10, 2026. Because the statute of limitations typically spans three years from the filing date or two years from when the tax was paid—whichever is later—acting sooner rather than later is critical.