Kwong Update: IRS Addresses Claim Deluge

New guidance arrives shortly before the July 10, 2026 refund claim deadline

Never heard of Kwong? Read my prior article on this topic or the recent blog by the National Taxpayer Advocate summarizing the issues.

The IRS recently provided new guidance on how to file Kwong claims, and which claims should be filed now versus which ones should wait.

Form 843 Guidance

The IRS stated the following in a post-release change to the Form 843 instructions:

• Individual taxpayers who have an IRS Online Account may submit a Kwong refund claim electronically. Tax professionals cannot access their client’s online accounts to do this for them, and there is no electronic form in the Tax Pro Account.

• Write “Kwong vs. United States” across the top of Form 843.

• Mail all Kwong refund claims to Internal Revenue Service, 1973 N Rulon White Blvd., Ogden, UT 84201.

Do not worry about any prior Kwong refund claims filed under the previous instructions; complete and mail all current and future ones using these instructions.

Do Not Submit Non-Refund Kwong Claims

Inside the Individual Online Account, the IRS stated the following regarding claims to abate unpaid penalties and interest:

If you file Form 843 with respect to unpaid penalties and interest, you will receive Letter 916C, Claim Incomplete for Processing; No Consideration, and your claim will not be held as a protective claim.

If the taxpayer’s claim for abatement will not result in a refund (because there is an unpaid balance on the tax period), there is no statute of limitation provision limiting relief, and the taxpayer does not need to file it now. This is why it is not a “protective claim” — a protective refund claim’s purpose is to put the proverbial “foot in the door” and stake a claim on an uncertain issue prior to the expiration of the refund statute of limitations.

Example 1. John just filed his 2021 tax return, and has an unpaid balance of $55,432 on July 2, 2026. He has made no payment on the tax year. While he has penalty and interest accruals eligible for a Kwong claim, he does not need to file it now. If he does file it now, the IRS will not give consideration to the claim and will not hold it.

Example 2. Fast forward to September 9, 2026. John pays his 2021 balance due in full. He has until September 9, 2028 (two years from the payment date) to file a timely refund claim for the Kwong-eligible penalties and interest. John may consider waiting to file it to see how further litigation proceeds with respect to the Kwong case.

July 10, 2026 Deadline Review

Practitioners must file any Kwong claims by July 10, 2026 that are a refund of amounts paid during the Kwong postponement period of January 20, 2020 through July 10, 2023. For amounts paid after that period, the practitioner must determine the refund statute of limitations end date for each tax period, and file a protective claim or actual claim (if Kwong is determined to be correct) by that date.

To reiterate: there is no limitations period or July 10, 2026 deadline to file a Kwong claim that is not a refund. The IRS will neither process it nor hold it.

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