IRS Stresses Legal Stance Against Broad Covid Deadline Relief

The IRS issued a memo continuing its legal fight to avoid paying out billions of dollars in refunds to Americans who filed late tax returns or paid interest during the Covid-19 pandemic.

IRS Action on Decision memos alert the public to the agency’s future litigation positions. In the memo, the agency said it disagrees with a Tax Court opinion in Abdo v. Commissioner that throws out the agency’s interpretation of tax deadline postponements during federal disasters.

In the 2024 Abdo decision, the Tax Court ruled that the taxpayers didn’t file their petition to the court late because it was ...