Millions can still claim IRS refunds as deadline nears, act before it’s too late

Millions of people may get a COVID tax refund, but the truth is more complicated. The refund is not free money for everyone, it is mainly for people who paid penalties on taxes during COVID time. Internal Revenue Service had stopped some tax deadlines between Jan 20, 2020 and July 10, 2023 because of the pandemic. A court ruling in November 2025 clarified how these deadline breaks should work.

Who can get refund

The ruling says people can now claim refunds on certain penalties, like:

• Late filing penalties
• Late payment penalties
• Underpayment charges
• Related interest

Dave Bohrman said this is important, but it’s not as simple as “everyone gets money”. Ivan H. Golden said the case is now getting attention because deadlines to claim refunds are getting close. To know if you qualify, you must check your old tax records from COVID years, as stated by Yahoo Finance. Bohrman explained that it gets tricky because you need to see if penalties were actually charged to you.

Refund deadline coming

Some people may need to take action quickly to stay eligible for refunds. Golden said refunds could be big for people who paid large tax bills or settled audits during COVID. There is a time limit risk — many refund claims may start expiring in 2026. There is still uncertainty, because the IRS may challenge this court ruling. Because of this, experts are telling people to file “protective claims” now while the case continues.

Bohrman warned the biggest problem is that people may miss out simply because they don’t check. He added that with deadlines coming, it’s all about awareness and taking action on time. If you think you could get money back, experts say you should talk to a tax professional and act fast, as per the report by Yahoo Finance.

FAQs

Q1. Who can get a COVID tax refund now?

People who paid tax penalties during COVID years may be able to claim a refund if they check their records and qualify.

Q2. What is the last date to claim IRS refund?

Many refund claims may start expiring in 2026, so people should act early and file before deadlines.