IRS Penalties and Interest Claims — File your claim now before time runs out.
Taxpayers potentially eligible for penalty & interest refunds
Tax years potentially impacted
Critical deadline for most taxpayers to file a protective refund claim (varies by taxpayers)
Understanding the Opportunity
Although each taxpayer’s situation is unique, the deadline for most taxpayers to file a protective claim is July 10, 2026. After this date, a taxpayer may permanently lose the right to a refund.
Submit your information and with your authorization, our team works with experienced tax professionals to review your IRS tax account information to determine if, according to the federal court ruling, you were charged improper penalties or interest that may be refundable.
If a potential opportunity is identified, experienced tax professionals will analyze your IRS records, determine the appropriate claim, and prepare the necessary filings. You review and approve all information prior to submission.
Your claim is submitted and we coordinate tracking and updates with the IRS. Our fee is only due upon a successful recovery.
If you or your business paid IRS penalties or interest for tax years 2020 through 2023, you may be eligible for a refund.
A recent federal court decision, Kwong v. United States (November 25, 2025), interpreted a provision of the tax code (IRC §7508A(d)) in a way that may have extended certain IRS filing and payment deadlines during the COVID-19 national emergency. The disaster period ran from January 20, 2020 through July 10, 2023 (including the statutory 60-day extension). Because penalties and interest only accrue after a deadline passes, the court held that certain penalties and interest charged during this period were improperly assessed. The ruling may apply to businesses, self-employed individuals, and personal tax filers. If you or your business paid penalties or interest to the IRS during this window, you may be entitled to a refund.
These claims are based on IRC §7508A(d), which addresses how tax deadlines are affected during federally declared disasters. In the Kwong decision, the court interpreted this provision to apply broadly during the COVID-19 national emergency period.
Although the IRS has the right to appeal this decision (and likely will), because the ruling sets forth a deadline for a taxpayer to file its refund claim(s), taxpayers will have to file protective claims to preserve their rights to potential refunds.
No, the IRS has the right to appeal the Kwong decision and most tax practitioners believe the IRS will appeal.
Since the decision is not final, filing a protective claim does not guarantee that you will receive a refund, but it preserves your right to a refund if the Kwong ruling is ultimately upheld. However, if you do not file a protective claim by the deadline, you will permanently lose your right to a refund. WonderTrust operates on a contingency basis, meaning you only pay a fee if a refund or abatement is successfully obtained.
A protective claim is a formal filing with the IRS that preserves your right to request a refund while a legal issue is still being resolved.
It notifies the IRS that you are asserting a potential claim based on a developing legal position. If that position is ultimately upheld, your claim may be processed. If not, the claim may be denied without additional penalties.
In many cases, tax refund claims must be filed within certain time limits under IRC §6511 (generally three years from filing deadline or two years from payment).
Based on current interpretations of the applicable rules, many taxpayers should consider filing protective claims by July 10, 2026 to preserve potential eligibility. Because timing can vary depending on individual circumstances, acting sooner is generally advisable.
There are no upfront costs. We operates on a 100% contingency basis. Our fee is a percentage of the refund or abatement we recover for you. If we don’t recover anything, you pay nothing. There are no retainers, no hourly fees, and no hidden costs.
Many businesses and individuals who were assessed IRS penalties or interest between January 20, 2020 and July 10, 2023 may be eligible to file a protective claim.
This includes corporations, partnerships, LLCs, S-corps, sole proprietors, and individual taxpayers. Eligibility depends on the specific type of penalty or interest and the underlying facts.
Yes. If you file a Schedule C or pay self-employment tax and the IRS assessed penalties or interest on your personal or business returns during the relevant period, you may be eligible for a refund. Estimated tax penalties under IRC §6654 are specifically covered. Many self-employed individuals faced cash flow disruptions that led to late filings or underpayments during this period — and those penalties may now be refundable.
With your approval, we’re granted view-only access to your tax transcripts. This means we can review your information, but we cannot make changes, file returns, or alter your account in any way. You can revoke this authorization at any time.
WonderTrust is focused on helping entrepreneurs, business owners, and individuals identify and pursue potential financial recovery opportunities.
Our team works closely with experienced professionals in tax, finance, and government program analysis, with a track record of working with American businesses to help them recover.
At WonderTrust we help American businesses and individuals identify recovery opportunities and navigate the process to get money back.
We help businesses, entrepreneurs, and individuals recover funds tied up in complex government processes. From tariff refunds to IRS penalty and interest recovery and other government-related opportunities, we’ve got you covered.
Powered by Kevin O’Leary and executed by a team with years of experience, WonderTrust combines tax and finance expertise, legal insight, and operational execution to turn complexity into real dollars returned to you!
100% contingency-based. No retainers, no hourly fees, no upfront costs. If we don’t recover money for you, you owe us nothing.
We work with experienced licensed tax professionals and attorneys with deep experience in IRS penalty abatement, refund recovery, and government programs.
We’ve helped tens of thousands of businesses and individuals successfully recover money delivering results.
What Makes Us Different
As Kwong is subject to appeal, refunds of certain IRS penalties and interest that were ruled improper under Kwong may be impacted by future court rulings and cannot be guaranteed. Eligibility for any such refunds is specific to each taxpayer based upon its unique facts and circumstances. WonderTrust is not a tax return preparer, bot works closely with experienced tax professionals who prepare and submit your claim . This website is for informational purposes only and does not constitute legal or tax advice.