Article | Authored by Aprio
The Employee Retention Credit (ERC), a key COVID-era relief measure, has faced persistent processing delays since its inception, leaving many taxpayers unsure about their claim status. If you are considering litigation to recover an ERC refund, timing matters: several deadlines can be triggered by:
An Overview
A recent federal court decision, Kwong v. United States, has created a refund opportunity for certain taxpayers who paid IRS penalties and related interest tied to filing or payment deadlines during the COVID-19 disaster period. To preserve potential refund rights, affected taxpayers need to file protective refund claims by Friday, July 10, 2026.
What’s Happening
The IRS has indicated that certain taxpayers seeking a refund or abatement should file using Form 843, Claim for Refund and Request for Abatement. Claims should identify the penalties and interest at issue, the applicable tax periods, and the legal basis for the request, including that the claim depends on the final outcome of the Kwong litigation and related IRS guidance.
What’s Next?
Because the deadline is approaching quickly, taxpayers who paid COVID-era federal penalties or related interest should contact their tax advisor as soon as possible.
Please connect with your advisor if you have any questions about this article.
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This article was written by Jeff Tutten and originally appeared on 2026-07-07. Reprinted with permission from Aprio LLP. © 2026 Aprio LLP. All rights reserved. https://www.aprio.com/insights-events/tax-alert-protective-refund-claims-due-friday-july-10/
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