The IRS has added an online filing option for some taxpayers seeking refunds tied to the Kwong court decision, but the window to act is short.

The IRS added an option on its mobile-friendly forms page allowing individual taxpayers to electronically file Form 843, Claim for Refund and Request for Abatement, for protective refund claims related to Kwong v. United States. The new online option is limited to individual taxpayers filing Form 843 electronically for Kwong-related claims involving fully paid penalties and interest. Business taxpayers must still file Form 843 on paper, and individuals who prefer not to use the online option may also file on paper.

Taxpayers seeking abatement of unpaid penalties or interest may still use Form 843, but the IRS’s new electronic filing option appears limited to claims involving amounts already paid.

To use the electronic filing option, taxpayers must have an IRS Online Account.

The timing matters because the IRS has appealed the Kwong decision. Protective refund claims are designed to preserve a taxpayer’s rights while a legal issue remains unresolved. If the government ultimately wins on appeal,

“There’s a narrow window for taxpayers who haven’t filed a claim yet,” Glen Frost of Frost Law Firm said in a news release. “This new electronic portal creates a shortcut for people to get their refund request in before the deadline. If people paid penalties or interest during the pandemic, this is a last-minute chance to quickly file a claim.”

National Taxpayer Advocate Erin Collins also flagged the deadline in a blog post, calling the result “not a fair result” for taxpayers who may ultimately be entitled to refunds but do not know they need to file now.

“When potential relief exists but taxpayers must know to ask for it, unrepresented taxpayers, low-income taxpayers, and taxpayers who cannot easily obtain transcripts or professional help are at special risk of losing refunds,” Collins wrote. “In fact, I suspect only a tiny fraction of potentially eligible taxpayers will file timely claims.”(I completely agree with her take.)

What Are Kwong Refund Claims?

The refund opportunity comes from Kwong v. United States, a federal tax refund case decided by the U.S. Court of Federal Claims. The court held that certain tax deadlines were automatically postponed for the entire........

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