Kwong News & Analysis
2 articles
Market Mood
IRS Refund Claims to Impact Millions Amid Ongoing Litigation Progress
A case, Kwong v. United States, may affect penalties charged by the IRS to taxpayers from January 2020 to July 2023. Experts indicate that tens of millions of taxpayers could be eligible for refunds, and the IRS has announced plans to appeal the ruling. A critical deadline is set for July 10, when eligible individuals must submit claims for refunds to avoid losing their rights. The value of these claims varies widely, with potential amounts reaching up to $9 million for a single case. This situation creates significant financial implications for many Americans, especially low-income individuals.
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IRS Penalty Refunds: Millions Eligible for Tax Refunds from $14.2M Penalties
A recent federal court decision has opened the possibility for millions of Americans to seek tax refunds related to penalties from the IRS. The ruling in Kwong v. United States indicates that penalties and interest assessed from January 20, 2020, to July 10, 2023, may be ineligible, impacting a broad range of taxpayers. During fiscal year 2023, the IRS assessed over 14.2 million individual estimated tax penalties and approximately 18.6 million penalties for failure to pay. Affected taxpayers must take action by July 10, 2026, to claim refunds or abate penalties.
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