Key Takeaways
- April 15, 2026 is the deadline to claim 2022 refunds under Internal Revenue Code (IRC) Section 6511(a) three-year rule; late filings forfeit refund rights.
- The lookback rule under IRC Section 6511(b)(2) and Section 6513(b) can limit refunds, as withholding and estimated taxes are deemed paid on April 15, affecting eligibility.
- COVID-19 disaster relief under IRC Section 7508A and Kwong extends certain refund deadlines to July 10, 2026, enabling claims for penalties and interest; timely evaluation is critical.
Most taxpayers associate April 15, 2026, with the deadline to file their 2025 tax returns. That date, however, also marks the final day to claim a refund for the 2022 tax year.
This year, another important due date may apply. Recent developments tied to COVID-19 disaster relief may extend the statute of limitations for certain refund claims to July 10, 2026, creating a critical and potentially overlooked opportunity for taxpayers to recover overpayments, penalties and interest.
The Three-Year Rule: The Deadline
As the IRS recently reminded us, under Internal Revenue Code (IRC) Section 6511(a), taxpayers generally have three years from the original filing deadline to claim a refund (though in some circumstances, this is limited to a two-year window). For 2022 tax returns, that three-year statute expires on April 15, 2026. Taxpayers who fail to file by that date will lose their right to any refund associated with that year.
The “Lookback” Rule: A Second Hurdle
Meeting the three-year filing deadline alone is not sufficient. IRC Section 6511(b)(2) imposes an additional limitation, commonly referred to as the “lookback” rule. This provision restricts refunds to taxes that were paid within the later of a two- or three-year period, depending on when a return was filed. Importantly, under IRC Section 6513(b), federal income tax withholding and estimated tax payments are generally deemed paid on the original due date of the return (typically April 15). As a result, timing is critical.
A taxpayer could file within the three-year window and still be denied a refund if the taxes were deemed paid outside the applicable lookback period. This principle is reinforced by Revenue Ruling 76-511, which confirms that both the filing deadline and the lookback requirement must be satisfied.
Disaster Relief Exception: A Unique Opportunity
An important exception may apply under IRC Section 7508A, which provides relief for taxpayers affected by federally declared disasters.
Recent developments, particularly the U.S. Court of Federal Claims decision in Kwong, have clarified the scope of COVID-19 relief. The court held that for the COVID-19 disaster, the automatic extension period under IRC Section 7508A ran from January 20, 2020, to July 10, 2023. This would mean that the entire period is disregarded in calculating filing deadlines. If the IRS assessed penalties or interest for taxpayers not meeting deadlines during this period, those amounts are potentially subject to refund claims. But timing remains key for application of IRC Section 6511. Refund claims must still be filed within three years from the extended deadline of July 10, 2023, so July 10, 2026.
Practical Implications: Penalty and Interest Refund Opportunities
This extension may be especially valuable for taxpayers seeking refunds of:
- Failure-to-file penalties
- Failure-to-pay penalties
- Underpayment interest
- Certain information return penalties, including international information return requirements
For example, a taxpayer who filed a 2020 return late and was assessed penalties during the COVID-19 disaster period may have grounds to request a refund. Because that timeframe may be disregarded under Section 7508A, the penalties and interest could be deemed improperly applied.
For the IRS, this also raises the question as to what to do with refund claims that were filed during the COVID relief period and treated as untimely. Kwong also supports the conclusion that refund filing deadlines were extended during the COVID relief period.
A Note of Caution: Limited Relief Going Forward
It is important to recognize that this level of relief is unusual. Legislative changes enacted after 2021 generally limit disaster-related extensions to 60 or 120 days, meaning the broad COVID-era relief is unique.
Key Takeaways
- April 15, 2026: The deadline to file a 2022 return and claim a refund under standard rules.
- Lookback rules apply: Filing on time does not guarantee a refund if payment timing requirements are not met.
- July 10, 2026: A potentially extended deadline for certain claims due to COVID-19 disaster relief, particularly for penalties and interest.
- Action is critical: Taxpayers should evaluate their positions now and consider filing protective claims where appropriate.
We Can Help
Navigating refund statutes and disaster relief provisions requires careful analysis. PKF O’Connor Davies can assist in evaluating refund eligibility under IRC Section 6511, assessing the impact of disaster relief provisions, preparing and filing protective refund claims and reviewing penalty and interest assessments for potential recovery.
Contact Us
If you believe you may be entitled to a refund or if you have questions about how these rules apply to your situation, please contact your PKF O’Connor Davies client service team or:
Kelly Morrison Lee, JD
Managing Director
Tax Controversy Practice
kmorrisonlee@pkfod.com
Samuel Philipson, CPA, JD
Partner
sphilipson@pkfod.com