380. The IRS May Owe You a COVID-Era Refund: What to Know Before July 2026

About this episode

The episode discusses potential IRS refunds for penalties and interest paid during the COVID years and the implications of recent court rulings.

Did you pay IRS penalties or interest during the COVID years? The IRS may owe you a refund. In this episode, Thomas Castelli and Nathan Sosa break down two major court cases that could impact taxpayers who paid penalties and interest between 2020 and 2023. They explain why recent court rulings have challenged the IRS's interpretation of COVID-era tax relief, who may be eligible for a refund, and what steps you should take before the July 2026 deadline. You'll learn: - Why the IRS's handling of COVID-era penalties and interest is being challenged - How the Kwong and Abdo cases could affect taxpayers - Who may qualify for a refund - How to check your IRS transcripts for potential claims - What a protective claim is and why filing one may be important - Why real estate investors and business owners should pay particular attention Plus, Thomas and Nathan answer a listener question about short-term rental tax strategy, cost segregation studies, and how personal use can impact your ability to utilize losses. Important: This opportunity is not guaranteed, and the IRS is continuing to challenge portions of these rulings. However, taxpayers may need to take action before July 10, 2026, to…

People in this episode

Hosts: Thomas Castelli, Nathan Sosa

Topics covered

• COVID-era tax refunds
• IRS penalties
• taxpayer eligibility
• court rulings
• real estate investors
• short-term rental tax strategy

Keywords

• IRS penalties
• COVID-era refunds
• tax relief
• Kwong case
• Abdo case
• taxpayer eligibility
• protective claim
• real estate investors
• short-term rental tax strategy

Mentioned in this episode

Organizations: IRS, Hall CPA

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