You may have seen headlines about a July 10, 2026, tax deadline, COVID‑era refunds, or the case Kwong v. United States. For some clients, that date may be important for resolving older tax issues before the window closes.
Although many people think first about individual tax returns, DMMs should remember that this issue may also touch business returns, information returns, or payroll filings connected to client work during the COVID postponement period (generally January 20, 2020 through July 10, 2023).
Why this matters
Federal law provides special rules that allow tax deadlines to be postponed for disaster relief. Recent court decisions and legislation have interpreted those rules to treat many deadlines that fell between January 20, 2020 and July 10, 2023 as if they were postponed to a new due date of July 10, 2023 because of the COVID‑19 emergency.
Because refund claims generally must be filed within three years of the return’s due date, that postponed July 10, 2023 deadline means many affected refund or abatement claims now have a filing deadline of July 10, 2026. The IRS has not fully agreed with this interpretation and has appealed key parts of the Kwong decision, but those appeals are not expected to be resolved before July 10, 2026.
Filing a claim now can help protect a client’s rights; not filing by July 10, 2026 could mean losing the chance to benefit later if the courts ultimately side with taxpayers.
Which clients to flag?
This deadline may be worth reviewing for clients whose returns or payments were affected by the COVID postponement period, including those who:
- Were charged late‑filing, late‑payment, or underpayment of estimated tax penalties.
- Have unfiled returns for years that should have been filed (typically 2019–2022).
- May need to amend a return because important deductions or credits (medical, charitable, business, etc.) were missed.
- Could still file a late original return and receive a refund.
- Filed after April 15 for the year in question and received a large refund.
- Paid penalties related to international information returns or other affected filings.
Not every client will qualify for relief, but these are the kinds of situations that may be worth raising with a CPA, enrolled agent, or tax attorney.
How can DMMs help?
Daily money managers can provide practical support by helping clients get organized and making it easier for a tax professional to evaluate the situation. Helpful steps may include:
- Helping clients create or access their IRS online account to share information with their tax professional.
- Obtaining and organizing IRS transcripts (account and wage and income) to show filing history, payments, and penalties.
- Noting which returns were filed on time, which were late, and which are still missing.
- Flagging returns or filings that appear to have significant missed deductions or other issues.
- Preparing a simple year‑by‑year summary of returns, penalties, payments, and questions to raise.
- Coordinating with the client’s tax professional well before the July 10, 2026 deadline.
A DMM is not required to determine the legal position or prepare a technical claim in order to be helpful on this issue. The value may be in helping the client access key IRS information, organizing the records, and supporting a timely handoff to a tax professional.
Important cautions
This remains an evolving area, and outcomes may depend on the taxpayer’s facts and the type of claim involved. The IRS has formally disagreed with the broader reading of the Kwong decision and is appealing key issues, so there is no guarantee that any particular claim will result in a refund or abatement.
Relief is also not automatic. In most situations, taxpayers must file a claim for refund or abatement (often using Form 843) no later than July 10, 2026 to preserve their rights. After that date many potential claims will be permanently time‑barred.
For readers who want more background, the National Taxpayer Advocate and Forbes have both published helpful explanations of the July 10, 2026 deadline, the Kwong decision, and why filing a timely claim now is important even though the final outcome is uncertain.
Links:
Katherine Gudgel, EA, PhD is a Daily Money Manager and Enrolled Agent. She is founder and owner of Gudgel Professional Services.
