By Brian Zingaretti, Naples Tax Attorney | Forza Law PLLC
Recent federal court decisions have created a potentially significant opportunity for taxpayers. As a Naples tax attorney, I am advising clients to review any IRS penalties and interest assessed during the COVID-19 pandemic, as they may be entitled to refunds or abatements under recent court rulings.
Two cases—Abdo v. Commissioner of Internal Revenue and Kwong v. United States, have opened the door for taxpayers to seek refunds or abatements of penalties and interest that many previously believed were no longer contestable.
Because the opportunity is time sensitive, taxpayers should promptly evaluate whether they may benefit from filing a protective claim for refund.
Quick Summary
If the IRS assessed any of the following during the COVID-19 disaster relief period, you may have grounds to seek a refund or abatement:
- Failure-to-file penalties
- Failure-to-pay penalties
- Estimated tax underpayment penalties
- Related interest assessments
In light of recent court decisions, taxpayers may have until July 10, 2026, to preserve these claims by filing a protective claim for refund.
What Did the Courts Decide?
Kwong v. United States
Under Internal Revenue Code Section 7508A, the IRS has authority to postpone certain tax deadlines during federally declared disasters.
In Kwong, the court concluded that the COVID-19 disaster relief period extended from March 13, 2020, through July 10, 2023. As a result, certain filing and payment obligations were effectively suspended during that period. This interpretation may affect the validity of penalties and interest assessed by the IRS during the relief period.
Abdo v. Commissioner of Internal Revenue
The court in Abdo addressed the statute of limitations applicable to refund and abatement claims. According to the court, the COVID-19 disaster relief period also suspended certain limitations periods under Internal Revenue Code Section 6532.
If this interpretation ultimately prevails, taxpayers may still have time to seek refunds that otherwise would have been considered untimely.
For many taxpayers, the critical deadline is July 10, 2026.
What Is a Protective Claim for Refund?
A protective claim is a filing submitted to the IRS that preserves a taxpayer’s right to a refund while legal issues remain unresolved.
Protective claims are commonly used when litigation or regulatory uncertainty could affect a taxpayer’s entitlement to a refund in the future.
A properly prepared protective claim generally identifies:
- The affected tax years
- The penalties or interest at issue
- The legal basis supporting the claim
- The amount claimed, if known
- A request for refund or abatement
Filing a protective claim does not guarantee that the IRS will issue a refund. However, it may preserve your rights if courts ultimately uphold these favorable interpretations.
Who Should Consider Filing?
Taxpayers often assume that once a refund deadline has passed, there are no remaining options. However, recent court decisions suggest that may not always be the case. A Naples tax attorney can help evaluate whether these rulings may apply to your specific circumstances.
You may wish to evaluate filing a protective claim if:
- You received failure-to-file penalties during the COVID-19 period.
- You received failure-to-pay penalties during the COVID-19 period.
- The IRS assessed estimated tax underpayment penalties.
- Interest accrued on liabilities affected by the disaster relief period.
- You previously believed the deadline to challenge the assessment had expired.
Why You Should Act Before July 10, 2026
Although the IRS continues to challenge aspects of these decisions, taxpayers who wait may lose the opportunity to preserve their claims.
Protective claims are intended to safeguard your rights while the courts determine the final outcome of these legal issues. Once the applicable statute of limitations expires, the ability to pursue a refund may be permanently lost.
How Forza Law Can Help
Based in Naples, Florida, Forza Law assists individuals and businesses throughout Southwest Florida in evaluating whether recent court decisions may provide opportunities for refunds or abatements of IRS penalties and interest.
Our tax team can help
- Review IRS account transcripts
- Identify potentially affected assessments
- Calculate refund opportunities
- Prepare and file protective claims
- Monitor ongoing developments in the litigation
Schedule a Consultation
If you believe you may be eligible for a refund of IRS penalties or interest, contact Forza Law PLLC today to speak with a Naples tax attorney about your options before the July 10, 2026 deadline.
Contact Forza Law PLLC today to schedule a consultation and discuss your potential refund opportunities.
About the Author
Brian Zingaretti is a Naples tax attorney with Forza Law PLLC focusing on federal and state tax strategy, tax controversy matters, and estate planning. With a background in both law and public accounting, he helps clients navigate complex tax issues and develop practical, forward-looking tax solutions.