NASHVILLE, Tenn. — Farmers, rural business owners and families who paid IRS late fees, estimated tax penalties or interest during the COVID years could be eligible for refunds, but they may need to act before the deadline passes.
According to AARP, 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, though refunds are not expected to happen automatically.
Anyone who filed or paid late, missed estimated tax payments, or was charged IRS interest during that period, is being encouraged to review past tax records. Farmers and self-employed rural taxpayers may especially want to take a closer look, as estimated tax rules often apply to their operations.
The first step is reviewing IRS account transcripts for 2020 through 2023. Tax preparers can help identify penalty or interest charges and determine whether Form 843 should be filed.
The IRS is still challenging the court ruling, but taxpayers may need to file a protective claim by July 10, 2026, to preserve possible refund rights.
Farm-Level Takeaway: If you paid IRS penalties or interest during the COVID years, review your records now, because a refund may not be issued unless you request it.
Tony St. James, RFD News Markets Specialist
Joe Peiffer with Ag & Business Legal Strategies advises farmers on end-of-year financial planning, including preparing records, avoiding common credit mistakes, and evaluating equipment purchases for 2026.
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