The Court of Federal Claims’ decision in Kwong v. United States is one of those cases that could quietly have a very real impact on how we look at COVID-era deadlines for individual taxpayers. At a high level, the court took a much broader view of how the clock was paused under pre-amendment IRC § 7508A(d) than what the IRS administered through its COVID notices. If that holding stands, we’re not just talking about filing and payment deadlines—we’re also talking about how penalties and interest were calculated, and whether certain refund claims may still be timely.
From a practical standpoint, this creates both opportunity and risk. There may be legitimate refund or abatement positions for 2019–2023 Form 1040 clients—particularly around penalty and interest amounts that accrued during the COVID period. But this is not settled law. The decision could be appealed or narrowed, and Congress has already changed the statute going forward. For now, the focus is on identifying where exposure (or opportunity) exists, preserving refund rights where appropriate, and considering protective claims—especially with a July 10, 2026 deadline increasingly part of the conversation—while framing any position as contingent on how this ultimately plays out.