If your business paid late-filing or late-payment penalties to the IRS during the COVID-19 pandemic, a landmark court case could mean a massive refund is heading your way. In late 2025, the U.S. Court of Federal Claims handed down a major victory for taxpayers in Kwong v. United States. The court ruled that the IRS improperly assessed billions of dollars in penalties and interest during the pandemic. Because of how this ruling impacts the statute of limitations, affected businesses and individuals have a strict window to act, with a major deadline looming on July 10, 2026. Here is what you…
