Good News: You May Still Have Time to Reduce What You Owe

If you received an IRS notice or searched for IRS Form 843 and saw a July 10, 2026 deadline, do not stop there. That deadline did not apply to everyone.

If you still owe the IRS, are currently making payments through an installment agreement, or paid some of the penalties and interest recently, you may still be able to file IRS Form 843 and request that your balance be reduced.

The July 10 deadline primarily affected many taxpayers seeking refunds or protective claims for older penalties and interest they had already paid. It was not a universal deadline that ended this opportunity for every taxpayer.

You may still be able to take action if you still owe the penalties or interest, the charges are included in an installment agreement, you made affected payments within the last two years, or part of the balance has been paid while another part remains unpaid.

The rules depend on what the IRS charged, what you have already paid, when the payments were made, and what remains on your account. Do not assume you are too late without having your records reviewed.

If You Still Owe, the July 10 Refund Deadline May Not Apply

This is the good news that many online explanations have failed to make clear.

When penalties or interest have already been paid, the taxpayer is generally asking the IRS for a refund or credit. Refund claims have strict filing deadlines.

When penalties or interest remain unpaid, the taxpayer is generally asking for an abatement. An abatement means asking the IRS to remove or reduce charges that remain part of the balance.

The July 10, 2026 refund deadline does not apply to unpaid amounts in the same manner. According to the National Taxpayer Advocate, the normal refund limitation rules apply when a taxpayer seeks money already paid, but they do not apply the same way to an abatement request involving unpaid penalties or interest.

This means that taxpayers who still owe money, including those currently paying through an IRS installment agreement, may still have an opportunity to seek a reduction.

What Is IRS Form 843?

IRS Form 843, Claim for Refund and Request for Abatement, is used to ask the IRS to refund, credit, reduce, or remove certain penalties, fees, and interest.

For someone who already paid affected penalties or interest, IRS Form 843 may be used to request a refund or credit. For someone who still owes the charges, the form may be used to request an abatement.

IRS Form 843 is generally not used to change the income, deductions, credits, or filing status reported on an income tax return. Those changes usually require an original or amended return.

In a claim connected to Kwong v. United States, the form may be used to address penalties and interest resulting from a return or payment the IRS treated as late during the COVID-19 federal disaster period.

You do not have to determine by yourself whether you need a refund claim, an abatement request, a protective claim, or another type of filing. Witherspoon Law can review the IRS account and determine which approach fits your circumstances.

What Happened in the Kwong Case?

In Kwong v. United States, the United States Court of Federal Claims reviewed how federal disaster postponement law applied during the COVID-19 national emergency.

The court interpreted Internal Revenue Code Section 7508A(d) as automatically postponing certain federal tax filing and payment deadlines during the federally declared disaster period. Under the court’s reasoning, affected deadlines falling between January 20, 2020, and July 10, 2023, were postponed until July 10, 2023.

The IRS computer systems did not generally apply that full postponement when calculating every affected deadline, penalty, and interest charge. As a result, some taxpayers may have been charged failure-to-file penalties, failure-to-pay penalties, estimated tax penalties, interest, and other additions based on a return or payment being considered late.

This does not mean that every penalty or interest charge from those years must be removed. The original deadline, filing date, payment date, type of charge, and account history all matter.

Witherspoon Law can review the IRS records to identify which charges may be connected to an affected deadline. Taxpayers do not have to understand every code, date, or transaction shown on an IRS transcript before asking for help.

Is the Kwong Decision Final?

The government is challenging the decision, so the final result remains uncertain. Filing IRS Form 843 does not guarantee that the IRS will issue a refund or reduce a balance.

The IRS may hold certain claims while the courts decide the issue. It may also deny a claim based on its current position. If the taxpayer position ultimately prevails, a properly filed request may lead to a refund, credit, abatement, or account adjustment.

A person considering a claim should understand that there may be a waiting period. The purpose of filing is to request available relief and protect any remaining rights while the case continues.

Why Was July 10, 2026 Important?

July 10, 2026 was an important deadline for many taxpayers seeking refunds of penalties or interest they had already paid.

Federal refund law generally requires a claim to be filed by the later of three years from the date the applicable return was filed or two years from the date the tax, penalty, or interest was paid.

Under the reasoning used in Kwong, affected deadlines were postponed through July 10, 2023. Three years from that date was July 10, 2026. That is why many announcements told taxpayers to submit refund or protective claims by July 10.

Unfortunately, some of those announcements made it sound as though every possible Form 843 request ended on that date. That is not true.

The July 10 date did not automatically eliminate the ability to request abatement of unpaid charges. It also may not eliminate refund rights involving payments made within the last two years.

What If You Are Currently Paying an Installment Agreement?

This may be one of the largest groups of taxpayers who mistakenly believe they are too late.

An IRS installment agreement can include the original tax, failure-to-file penalties, failure-to-pay penalties, other additions, and interest. As monthly payments are made, the IRS applies those payments according to its account procedures.

Some affected penalties and interest may already have been paid. Other charges may remain in the unpaid balance. Payments made within the last two years may also need to be reviewed under the two-year refund rule.

The IRS may not have automatically recalculated the installment agreement after the Kwong ruling. A taxpayer could still be making monthly payments on a balance that includes disputed penalties and interest.

Witherspoon Law can review the payment history and determine which amounts have been paid, which were paid recently, and which remain unpaid. From there, the appropriate request may involve a refund, credit, abatement, or reduction of the remaining balance.

Taxpayers should not stop making installment payments while this issue is being reviewed. Missing a required payment could cause the agreement to default and create a new collection problem.

What If You Paid Some of the Amount Recently?

Even if you paid penalties or interest, you should not automatically assume that your refund rights have expired.

Federal law generally includes a filing period measured from the payment date. If you paid an affected penalty or interest amount within the last two years, you may still have time to request a refund or credit for that payment.

This can be important for taxpayers in long-term installment agreements. A payment made last month may be treated differently from a payment made several years ago. The amount that may be recovered can depend on when the payment was made and how the IRS applied it.

Determining that information can be difficult from an ordinary installment agreement statement. IRS account transcripts may be needed to trace the payments and identify how much was applied to tax, penalties, and interest.

Witherspoon Law can obtain or review those records and explain whether a remaining refund period may apply.

What If Part of the Balance Is Paid and Part Is Still Owed?

Many taxpayers will have a mixture of paid and unpaid charges.

For example, someone may have paid older penalties more than two years ago, paid other amounts during the last two years, and still owe additional penalties and interest through an installment agreement.

That does not necessarily require one single type of request. The recently paid portion may need to be addressed as a refund or credit claim, while the unpaid portion may need to be addressed as an abatement request.

The important point is that one expired deadline does not automatically control every part of the account. Each payment and unpaid assessment must be reviewed separately.

How Do You Know Whether Your Account May Be Affected?

IRS account transcripts can show tax assessments, penalty charges, interest, payments, credits, refunds, adjustments, and installment agreement activity.

However, taxpayers should not be expected to interpret those transcripts alone. The codes can be confusing, the payment applications may be difficult to follow, and a penalty posted after July 10, 2023 may still relate to an earlier filing or payment deadline.

Witherspoon Law can review the transcripts together with tax returns, IRS notices, payment records, and installment agreement information. The goal is to determine whether the charges are connected to deadlines falling during the COVID-19 disaster period and whether any filing opportunity remains.

The review may involve more than one tax year. It may also involve separating amounts already paid from those still included in the current balance.

What Information May Be Needed?

You do not need to assemble a complicated file before contacting Witherspoon Law. Begin with whatever you already have, such as the IRS notice, recent installment agreement statements, payment records, or copies of the affected returns.

Additional account transcripts or IRS records can be identified during the review. If more information is needed, Witherspoon Law can explain what documents matter and why they are relevant.

The taxpayer’s filing dates, payment dates, assessment history, and remaining balance will help determine whether the request should seek a refund, credit, abatement, protective treatment, or another correction.

Separate IRS Form 843 filings may be needed for different tax years or different types of charges. The correct filing method and mailing address can also vary depending on the nature of the claim.

Does Filing IRS Form 843 Stop Collection?

Filing IRS Form 843 does not automatically stop IRS collection activity. An installment agreement payment may still be due, interest may continue to accrue, and the IRS may continue collection unless another arrangement or hold is obtained.

This does not mean that filing the form is pointless. It means the Form 843 request and the collection matter may need to be handled together.

Witherspoon Law can evaluate whether the taxpayer should continue an existing agreement, seek a temporary collection delay, request different payment terms, or take another action while the IRS reviews the Form 843 request.

A taxpayer should not stop paying or ignore IRS notices simply because a refund or abatement request is pending.

What Happens After IRS Form 843 Is Filed?

After receiving IRS Form 843, the IRS may request more information, allow the request, approve only part of it, hold the matter while the litigation continues, or deny it.

If the request is approved, the result could include a refund, a credit applied to another balance, removal of unpaid charges, or a reduction in the amount remaining under an installment agreement.

Because the Kwong litigation remains unresolved, the IRS may not make an immediate final decision. Some claims may remain pending until the courts provide further direction.

If the IRS sends a denial or asks for additional information, Witherspoon Law can review the correspondence and determine what response may be available. Additional deadlines can begin when the IRS formally disallows a refund claim, so new IRS mail should be addressed promptly.

You Do Not Have to Handle This Alone

IRS Form 843, refund deadlines, abatement rules, payment allocations, and court decisions can become confusing quickly. Someone who is already dealing with an IRS balance should not have to sort through years of transcripts and legal rules without help.

Witherspoon Law assists individuals and businesses with COVID-era penalty and interest reviews, IRS Form 843 filings, refund claims, abatement requests, installment agreements, and account corrections.

The firm can review the account, identify which charges may be affected, determine what has been paid, separate recent payments from older payments, and evaluate what remains unpaid. It can then prepare the appropriate request and communicate with the IRS regarding the account.

Do Not Assume You Missed Your Opportunity

The most important fact is simple: July 10, 2026 was not the final deadline for every taxpayer affected by these COVID-era penalties and interest charges.

If you still owe the IRS, are currently making installment payments, recently paid affected penalties or interest, or have both paid and unpaid charges, you may still have time to seek help.

Witherspoon Law can review your situation and determine whether a refund, credit, abatement, protective filing, or account adjustment may still be available.

Do not let one deadline shown in a notice or online search convince you that nothing can be done. The deadline may not apply to your situation, and you may still have an opportunity to reduce what you owe.