NASHVILLE, TENN. (RFD NEWS) — Farmers, rural business owners, and families who paid IRS late fees, estimated-tax penalties, or interest during the COVID years may have money waiting to be refunded. The catch is that they likely have to ask for it before the deadline passes.
AARP reports the issue involves penalties and interest charged during the federal COVID disaster period, which ran from Jan. 20, 2020, through July 10, 2023. The National Taxpayer Advocate says millions of taxpayers could be affected, but refunds are not expected to arrive automatically.
That means anyone who filed late, paid late, missed estimated tax payments, or was charged interest by the IRS during that period should review their old tax records. Farmers and self-employed rural taxpayers may want to pay close attention, as estimated tax rules often apply to their operations.
The first step is checking IRS account transcripts for 2020, 2021, 2022, and 2023. A tax preparer can help identify penalty and interest charges and determine whether Form 843 should be filed.
The IRS is still fighting the court ruling, but taxpayers may need to file a protective claim by July 10, 2026, to preserve refund rights.