Kwong v. United States: A Breakdown

A Taxpayer-Favorable COVID Deadline Case With Potential Refund and Penalty Implications

A recent Court of Federal Claims decision, Kwong v. United States, could matter for taxpayers who assumed certain refund claims, refund suits, or penalty challenges became untimely during the COVID period. The court held that the pre-2021 version of Internal Revenue Code section 7508A(d) automatically postponed certain federal tax deadlines for qualified taxpayers during the COVID disaster period, and that for the taxpayer in the case, the postponement ran through July 10, 2023 [2].

Although the decision is favorable to taxpayers, it is not the last word. It is a trial-court decision, not binding nationwide, and it conflicts with the IRS’s narrower reading of the statute reflected in its regulations [2]. Still, the case is important because it offers a substantial statutory argument for taxpayers whose deadlines fell during the COVID disaster period.

IRS Provides Relief to Victims of Severe Storms and Flooding in Connecticut and New York

Various Deadlines Postponed to Feb. 3, 2025

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Connecticut and New York affected by severe storms and flooding from torrential rainfalls that began on Aug. 18, 2024. Some communities in western Connecticut also experienced landslides and mudslides from these storms. 

Understanding Tax Terms: Basis

Covering the bases on basis

Basis is a common IRS term, but probably does not enter into your everyday conversation. This IRS term is important because it impacts the taxes you pay when you sell, exchange or give away property.

Social Security: Know the Variables

It's never too early to understand how it works