Pandemic Penalty Relief

Many taxpayers paid IRS penalties during the COVID-19 pandemic without realizing they may have qualified for disaster-related tax relief. Recent changes in the law expanded who may qualify for postponed tax deadlines, penalty relief, and refunds of penalties or interest already paid.

The IRS postponed many tax deadlines between March 2020 and July 2023 because of the federally declared COVID-19 disaster emergency. In some cases, taxpayers may still be able to request refunds or challenge penalties that should not have been charged during these postponement periods.

These rules may apply more broadly than many people expect. Relief may be available not only for taxpayers directly affected by the pandemic, but also for taxpayers whose records, tax professionals, payroll providers, banks, or businesses were impacted during this and other disaster periods, such as severe storms and hurricanes.

How We Help

We review IRS account transcripts, notices, filing dates, and payment history to determine whether penalties or interest may have been incorrectly charged during the COVID-19 disaster relief period.

We also assist taxpayers who have already paid penalties without realizing they may have qualified for relief.

Depending on your situation, we may assist with:

• Reviewing IRS penalties and notices

• Determining whether COVID-19 disaster relief rules apply

• Requesting penalty or interest relief

• Filing refund claims when appropriate

• Correcting IRS filing or payment records

• Responding to IRS collection activity

• Reviewing accounts for missed postponement relief under Internal Revenue Code §7508A

Common Situations We Review

You may want a review if:

• You received IRS late filing or late payment penalties between 2020 and 2023

• You filed or paid taxes late during the pandemic

• Your accountant, payroll company, or records were disrupted during COVID-19

• You received IRS collection notices during a postponement period

• The IRS assessed penalties even though you believed deadlines had been extended

• You are unsure whether the IRS correctly applied COVID-19 disaster relief to your account

Every situation is different, and these rules can be highly technical. A careful review of IRS account transcripts and filing history is often needed before determining whether relief may still be available.

Start With Your IRS Online Account

We encourage taxpayers to create and maintain an online account with the IRS. Your account can provide access to tax records, notices, payment history, and account transcripts that may help identify potential relief opportunities.

Important Deadline for Many Claims

For many taxpayers, the deadline to file certain pandemic-related refund claims is July 10, 2026. Waiting too long could mean losing the ability to request refunds, penalty relief, or other tax benefits that may still be available.

If you think you may qualify, we encourage you to act early. A timely review gives us more time to obtain IRS records, review account transcripts, and determine whether relief may apply to your situation.

Complete the contact form to get started and schedule a discovery call.