IRS Opens Online Portal for Tax Refund Claims

The IRS has opened an online portal for taxpayers seeking refunds related to the recent Kwong court decision. The portal allows individual taxpayers to electronically file Form 843, Claim for Refund and Request for Abatement, for protective refund claims related to Kwong v. United States. The new online option is limited to individual taxpayers filing Form 843 electronically for Kwong-related claims involving fully paid penalties and interest. Business taxpayers must still file Form 843 on paper, and individuals who prefer not to use the online option may also file on paper. Taxpayers seeking abatement of unpaid penalties or interest may still use Form 843, but the IRS’s new electronic filing option appears limited to claims involving amounts already paid. To use the electronic filing option, taxpayers must have an IRS Online Account. The timing matters because the IRS has appealed the Kwong decision. Protective refund claims are designed to preserve a taxpayer’s rights while a legal issue remains unresolved. If the government ultimately wins on appeal, taxpayers may not receive a refund. 'There’s a narrow window for taxpayers who haven’t filed a claim yet,' said Glen Frost of Frost Law Firm. 'This new electronic portal creates a shortcut for people to get their refund request in before the deadline. If people paid penalties or interest during the pandemic, this is a last-minute chance to quickly file a claim.' National Taxpayer Advocate Erin Collins also flagged the deadline in a blog post, calling the result 'not a fair result' for taxpayers who may ultimately be entitled to refunds but do not know they need to file now. The IRS's online portal provides taxpayers with an opportunity to file their refund claims quickly and efficiently. However, it is essential to act promptly, as the deadline is approaching.