Don’t Miss the Deadline: Protective Claims and Kwong v. USA

If you’ve paid certain IRS penalties in recent years, the clock is ticking on your right to get that money back. The Kwong v. USA ruling has opened a potential window for taxpayers to recover funds, but the opportunity won't last forever.

What is a Protective Claim?

A protective claim is essentially a placeholder filed with the IRS. It preserves your right to a refund when the specific amount is still being determined or when the legal right to the refund depends on a future event or court decision.

Why the Urgency?

Tax law has strict statutes of limitations. For many taxpayers, the window to file for previous years—specifically related to the issues raised in Kwong—is closing fast. Waiting until the final details are settled could mean your claim is barred by law. To protect your interest, you must act before the upcoming July deadlines.

The Bottom Line

Filing a Form 843 now ensures you stay in the running for a refund. It’s better to have a claim on file and wait for the outcome than to realize you’re entitled to a refund only after the deadline has passed.

Disclaimer: This post is for informational purposes only and does not constitute tax or legal advice.