The IRS May Owe You A Refund For COVID Related Penalties & Interest Under Kwong vs US
If you paid the IRS a late penalty during the COVID years, there's a real chance you can get that money back. This one matters for local business owners and vacation rental owners around the Enchanted Circle, a lot of whom got buried in penalties and interest during that stretch.
What Kwong vs US Is About
There's a case called Kwong versus the United States, and it centers on the idea that the IRS may have charged penalties and interest it had no right to charge. If that holds up, it could open the door to refunds on money plenty of people figured was gone for good.
Why This Matters for Business and Vacation Rental Owners
I know a lot of our local business owners and vacation rental owners took a beating on penalties and interest during the COVID years. If you were one of them, this case could put real dollars back in your pocket.
What You Need to Do Before July 10th
Here's the part you can't ignore. The case is on appeal, so nothing is guaranteed. And even if it goes the right way, the IRS is not going to mail you a check automatically. You have to file a claim, and the deadline to do that is July 10th. If you got hit with penalties or interest during this period, call your accountant now so you don't miss the window.
This one is time sensitive, so don't sit on it. A quick call to your accountant could be the difference between getting that money back and leaving it on the table.
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Have questions or want to learn more? Give us a call at 575-613-4243. We're happy to help.
Rob Swan | Qualifying Broker | Swan Realty Inc.
