Here’s what this potentially means for taxpayers

An automatic 3-year extension to file and pay was in place.
Instead of the short extension the IRS previously offered, the court found that the law required a continuous, automatic pause on deadlines for over three years.

No penalties or interest should have been charged.
Because the deadlines were legally "paused," the IRS may have had no legal right to charge late-filing or late-payment penalties or interest during that entire period.

A refund opportunity for many taxpayers.
If you paid penalties or interest for any tax deadline that fell within those dates, you might be eligible for a refund or removal of penalties and interest assessed.

Remember, this is a trial-level court decision that the government is expected to appeal, so the final outcome is not yet certain. But there is a deadline to act.
In most cases, the IRS does not issue refunds or abate tax assessed but not yet paid unless a taxpayer files a claim. To potentially get this money back, taxpayers need to file a claim by July 10, 2026, unless the IRS decides to issue these refunds without taxpayer action. Failing to act by the filing deadline would likely render any future claim invalid.

Here’s how to check whether you may qualify for a refund

Review your tax records and IRS account transcripts through your Individual Online Account on the IRS website.

Analyze your account activity during the 2020 to 2023 timeframe to verify whether any penalties or interest fees were charged. Remember, this likely includes your 2019 to 2022 tax filings, as they were normally due during this period. 

How can CryptoTaxAudit help?

New clients wanting to utilize our expertise in IRS resolution services for the Kwong-related penalty and interest penalty waiver pay a one-time up-front cost of $979, plus our normal membership rate of $89 a month until the case is resolved and refunds are processed. All other membership benefits are also included.

Get started with Tax Shield Full Defense
Our firm provides IRS audit representation and resolution services for taxpayers at an affordable cost through a service called Tax Shield Full Defense. We actively monitor our clients’ IRS accounts and analyze their records to determine any penalty and interest payments that may qualify due to this ruling.

Our members are also covered for most issues that they could encounter with the IRS.

Have questions?
Schedule a consultation with one of our Enrolled Agents, who have expertise in representing taxpayers before the IRS for Audit and Resolution Services such as this.

Act fast.
You’ll need to sign up soon so we can prepare the claims before the deadline. New memberships must be purchased by May 31st to guarantee we can assist you.