IRS Appeals Case With Implications for Pandemic-Era Tax Refunds

The IRS and Justice Department are appealing a judgment to avoid potentially paying out billions of dollars in refunds to Americans who filed late or paid interest to the IRS during the Covid-19 pandemic.

In a November 2025 ruling in Kwong v. US, the US Court for Federal Claims held the Covid-19 pandemic that began in 2020 automatically postponed certain tax deadlines, extending federal tax deadlines to July 10, 2023. It was shift from the position that the IRS, which enforced tax deadlines during the pandemic, held.

The court in March issued a judgment ordering the government to pay the ...