A recent court interpretation has raised unexpected questions about how federal tax deadlines were applied during the COVID emergency period, and what could mean for taxpayers today.
Over the course of the pandemic, the federal government tolled a variety of tax filing and payment deadlines under disaster relief provisions. Because the COVID emergency declarations remained in effect for more than three years, some legal experts argue that certain IRS filing and payment deadlines may have been paused from early 2020 through mid-2023. Depending on how the law is interpreted going forward, the answer could matter for many taxpayers.
Here’s what that might mean:
- Returns or payments that were treated as late during that period could now be viewed as timely under the law.
- Penalties or interest charged for late filing or late payment in those years might be challenged or refunded.
- Taxpayers and their advisors are already looking at possible amended filings or claims for refunds where the potential benefit is meaningful.
At the time of this writing, the matter isn’t settled. The IRS could issue specific guidance, and further court rulings or legislative action may shape what ultimately applies.
What You Can Do Now
If you or your organization incurred significant late-filing or late-payment penalties between early 2020 and mid-2023, consider a review of your tax history. There may be opportunities to recover amounts paid or take corrective action where appropriate.
Our tax team is closely monitoring developments and evaluating how this evolving interpretation may impact different types of taxpayers. If you have questions or would like to explore how it applies to you, please contact your advisor or connect with our tax team. We’re here to help you evaluate your options and plan next steps.
