Potentially billions of dollars are at stake if tens of millions of Americans claim pandemic-era refunds after a recent court ruling, the National Taxpayer Advocate Erin Collins said.
In a recent case, Kwong v. US, the US Court for Federal Claims held the Covid-19 pandemic that began in 2020 automatically postponed certain tax deadlines, extending federal tax deadlines to July 10, 2023.
Following the ruling, some tax experts, including Collins, said the IRS shouldn’t have assessed penalties for late filing or payment or charged interest for the period of the pandemic.
This means tens of millions of taxpayers could ...