COVID-Era Tax Relief Alert: What Taxpayers Need to Do Before the July 10, 2026 Deadline
Taxes are complex, and when things don’t go according to plan, they can feel overwhelming and stressful. But ignoring or neglecting tax issues won’t make them go away. In fact, waiting can make the issue even worse.
If you’re in a dispute with a taxing authority, Bennett Thrasher can represent and advise you through the tax controversy process. We can support you during a tax audit, if you have a collection issue, and in most other tax-related disputes.
If you are looking for a partner to assist with any tax controversy issue, we can help. Contact James Pickett to schedule a consultation.
At Bennett Thrasher, we specialize in working with businesses, individuals, and their attorneys to satisfy unresolved tax disputes with federal, state, and local jurisdictions. Some of the tax controversy areas we help with include:
In a field audit, the IRS or state tax authority auditor comes to your home, office or the office of your representative. Field audits can be expansive, spilling over into other years, other commonly owned businesses and related personal returns. We assist individuals, partnerships and corporations in all industries to navigate the field audit process from beginning to end.
In a correspondence audit, a tax authority requests that you mail them documentation to support specific items on your tax return. A prompt and thorough response to correspondence audit requests increases the likelihood of a favorable outcome and can keep tax problems from escalating.
We can advise the best course of action to appeal a tax controversy matter that has not been resolved during an audit including via managerial conferences, fast-track settlements, appeals and more.
We can help you understand the possible risks before filing a return and address potential IRS issues before they arise.
Each year, the IRS sends millions of letters and notices to taxpayers notifying them of changes to their accounts, requesting payment and assessing penalties. Quite often, you will not owe the amount requested. Our team can review any notice you receive, and our goal is to help you prevent penalties or negotiate with the IRS to remove or reduce previously asserted tax penalties.
We will work with you to design the most advantageous approach to any tax problem or dispute.
Even the most diligent taxpayer may receive notices from tax authorities. Our first piece of advice in these situations is: don’t panic — we can help.
There is no universal rulebook for resolving tax controversies. Each tax problem has unique facts and circumstances. Fortunately, our dedicated team of specialists is well equipped to provide comprehensive tax dispute resolution solutions. We provide custom solutions to help clients mitigate risks and manage tax disputes, both in the U.S. and internationally. We can also assist with state and local tax (SALT) controversy matters like appeals, abatements, settlements, and audits.
Our experienced professionals will help you develop strategies for handling IRS audits, payment plans, penalty notices, and other tax compliance issues. With a strong and effective advocate on your team, you can rest assured that your interests and tax position are protected.
This is an important update that may create refund opportunities for certain taxpayers following this recent federal court decision.
The Kwong Decision and Potential Relief
The U.S. Court of Federal Claims decision in Kwong v. United States (building on Abdo v. Commissioner) interprets IRC Section 7508A(d) to extend certain federal tax deadlines across the full COVID-19 federal disaster period (January 20, 2020, through July 10, 2023).
Under this interpretation, many filing and payment deadlines that originally fell within that period were effectively postponed until July 10, 2023. As a result, taxpayers may be eligible for refunds or abatements of:
This primarily affects tax years 2019 through 2022 (and in some cases early 2023 filings).
Critical Deadline: July 10, 2026
For most taxpayers, the statute of limitations to preserve refund rights expires July 10, 2026
To maintain eligibility while litigation continues (the IRS has appealed), taxpayers should consider filing a protective refund claim:
Refunds are not automatic.
Important Timing Consideration
In some cases, refund claim deadlines may extend beyond July 10, 2026, particularly if tax liabilities were settled more recently. Generally, claims must be filed within the later of the following:
We can help determine your specific timeline.
How Bennett Thrasher Can Help
Our Tax Controversy team has extensive experience with IRS disputes, including penalty abatements, interest issues, conservation easement disputes, and protective claims. We can:
Next Steps
A key consideration for evaluating this opportunity is the materiality of any penalties and interest incurred because there are costs to filing a claim. If you paid material penalties or interest tied to tax deadlines during the January 20, 2020 – July 10, 2023 period, we encourage you to act promptly. Our team is also analyzing data and may reach out to you directly.
Contact Chris Stephens directly at 770-635-5061 or [email protected] to schedule a brief review.
We will help determine your eligibility and ensure all applicable deadlines are met.
At Bennett Thrasher, we specialize in working with businesses, individuals, and their attorneys to satisfy unresolved tax disputes with federal, state, and local jurisdictions. Some of the tax controversy areas we help with include:
In a field audit, the IRS or state tax authority auditor comes to your home, office or the office of your representative. Field audits can be expansive, spilling over into other years, other commonly owned businesses and related personal returns. We assist individuals, partnerships and corporations in all industries to navigate the field audit process from beginning to end.
In a correspondence audit, a tax authority requests that you mail them documentation to support specific items on your tax return. A prompt and thorough response to correspondence audit requests increases the likelihood of a favorable outcome and can keep tax problems from escalating.
We can advise the best course of action to appeal a tax controversy matter that has not been resolved during an audit including via managerial conferences, fast-track settlements, appeals and more.
We can help you understand the possible risks before filing a return and address potential IRS issues before they arise.
Each year, the IRS sends millions of letters and notices to taxpayers notifying them of changes to their accounts, requesting payment and assessing penalties. Quite often, you will not owe the amount requested. Our team can review any notice you receive, and our goal is to help you prevent penalties or negotiate with the IRS to remove or reduce previously asserted tax penalties.
We will work with you to design the most advantageous approach to any tax problem or dispute.
Even the most diligent taxpayer may receive notices from tax authorities. Our first piece of advice in these situations is: don’t panic — we can help.
There is no universal rulebook for resolving tax controversies. Each tax problem has unique facts and circumstances. Fortunately, our dedicated team of specialists is well equipped to provide comprehensive tax dispute resolution solutions. We provide custom solutions to help clients mitigate risks and manage tax disputes, both in the U.S. and internationally. We can also assist with state and local tax (SALT) controversy matters like appeals, abatements, settlements, and audits.
Our experienced professionals will help you develop strategies for handling IRS audits, payment plans, penalty notices, and other tax compliance issues. With a strong and effective advocate on your team, you can rest assured that your interests and tax position are protected.
This is an important update that may create refund opportunities for certain taxpayers following this recent federal court decision.
The Kwong Decision and Potential Relief
The U.S. Court of Federal Claims decision in Kwong v. United States (building on Abdo v. Commissioner) interprets IRC Section 7508A(d) to extend certain federal tax deadlines across the full COVID-19 federal disaster period (January 20, 2020, through July 10, 2023).
Under this interpretation, many filing and payment deadlines that originally fell within that period were effectively postponed until July 10, 2023. As a result, taxpayers may be eligible for refunds or abatements of:
This primarily affects tax years 2019 through 2022 (and in some cases early 2023 filings).
Critical Deadline: July 10, 2026
For most taxpayers, the statute of limitations to preserve refund rights expires July 10, 2026
To maintain eligibility while litigation continues (the IRS has appealed), taxpayers should consider filing a protective refund claim:
Refunds are not automatic.
Important Timing Consideration
In some cases, refund claim deadlines may extend beyond July 10, 2026, particularly if tax liabilities were settled more recently. Generally, claims must be filed within the later of the following:
We can help determine your specific timeline.
How Bennett Thrasher Can Help
Our Tax Controversy team has extensive experience with IRS disputes, including penalty abatements, interest issues, conservation easement disputes, and protective claims. We can:
Next Steps
A key consideration for evaluating this opportunity is the materiality of any penalties and interest incurred because there are costs to filing a claim. If you paid material penalties or interest tied to tax deadlines during the January 20, 2020 – July 10, 2023 period, we encourage you to act promptly. Our team is also analyzing data and may reach out to you directly.
Contact Chris Stephens directly at 770-635-5061 or [email protected] to schedule a brief review.
We will help determine your eligibility and ensure all applicable deadlines are met.
“The transfer pricing audit ended after the German tax authorities reviewed our Local File. It might have been the best money I have ever spent.” – Feedback from Finance Director of Irish Multinational in Healthcare Industry following a transfer pricing audit in Germany
“Ben and his staff have been fantastic. They have been very professional and extremely patient as we navigate through our transaction and the planning process.”
“We are incredibly grateful for the partnership, support and collaboration of you and your team…Your professionalism and collaboration truly made the difference for the Company, our teams and our leaders.”
“As always, we very much appreciate your hard work and the hard work of the entire BT team.”
“In the past, I have used two of the top four national accounting firms for advice. I have found Jeff Call’s firm Bennett Thrasher, the most responsive, always available and very, very helpful. Once I’m not around, I’m certain my state trustee will continue to rely on Jeff’s firm.”
“Bennett Thrasher provided exceptional second mile audit services for Trilith Studios. Their team was thorough, knowledgeable, demonstrated a high level of attention to detail and provided clear communication throughout the entire process. We highly appreciated their collaboration and the professional service they provided throughout the entire audit process.”
“Just when you have self-assessed your company to possibly be the worst client ever, the Staff at Bennett Thrasher make you feel like you are their most important and beloved client. That ability is an attribute you don’t see in many accounting firms.”
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