COVID Tax Refunds: Could You Get Money Back from the IRS?

Millions of Americans may be able to get money back from the IRS, but the deadline to act is July 10, 2026—just days away.

What Is This About?

During the COVID-19 pandemic, the IRS charged many taxpayers penalties and interest for late tax payments or filings. However, recent court cases have suggested that some of these charges may have been applied incorrectly.

This means that if you paid these penalties or interest between January 20, 2020, and July 10, 2023, you might be able to get some of that money back.

Important: These are not new stimulus checks or government relief payments. This is about getting refunds for penalties and interest you may have already paid to the IRS.

Who Can Apply?

You might qualify for a refund if:

• You paid IRS penalties for filing your taxes late
• You paid penalties for paying your taxes late
• You were charged interest or penalties related to estimated tax payments

The amount you could get back depends on your individual situation. Some people may receive small refunds, while others—especially business owners or those with multiple penalties—could recover larger amounts.

How to Claim Your Refund

Getting this money back is not automatic. You need to take action yourself. Here's what you should do:

1. Check your IRS records – Review your IRS account transcripts to see if you were charged penalties or interest during the pandemic period.

2. File the right paperwork – Most people will need to submit IRS Form 843 to request a refund. You may also need to file an amended tax return or a formal refund request.

3. Consider filing a "protective claim" – If you're unsure whether you qualify, you can file a protective claim. This keeps your options open while legal questions are still being sorted out.

4. File electronically if possible – Some taxpayers can submit Form 843 online through their IRS Online Account, though this depends on the type of claim.

Don't Miss the Deadline

The deadline to file is July 10, 2026. If you miss it, you may lose your chance to get this money back permanently.

The National Taxpayer Advocate has urged everyone to review their records and file before time runs out.

What Should You Do Now?

If you think you might qualify:

• Review your IRS transcripts online
• Gather your tax documents from 2020-2023
• Consider talking to a tax professional if you're unsure
• Make sure all your paperwork is complete and accurate before submitting

Time is running out, so act quickly if you believe you were charged penalties or interest during the COVID-19 emergency period.
 

How This Refund Could Help Pay Your Auto Loan

If you receive a refund from the IRS, it could provide some much-needed financial relief—including helping you stay current on your car payments.

Here are some smart ways to use your refund toward your auto loan:
 

• Catch up on missed payments – If you've fallen behind on your car payments, this refund could help you get back on track and avoid repossession.
• Make extra payments toward your principal – Putting extra money toward your loan balance can reduce the total interest you pay over time and help you pay off your car faster.
• Build a payment buffer – You could set aside the refund money to cover one or two months of car payments, giving you breathing room in case of future financial emergencies.
• Refinance more easily – If your refund helps improve your overall financial situation, you may qualify for better refinancing terms, which could lower your monthly payment or interest rate.

 

With the average monthly car payment in the U.S. now exceeding $700 for new vehicles, even a modest IRS refund could make a real difference in managing your auto loan.

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