44 days left — Deadline to file your COVID penalty & interest refund claim ·
PenaltyBackby TaxNow
Final COVID stimulus — filing open

One last COVID stimulus is still on the table. The IRS wrongly charged you penalties and interest — and you're owed a refund.

Two federal courts ruled the IRS had no legal authority to assess penalties and interest during the COVID disaster declaration. If you were charged penalties or interest on a return between 2020 and 2023, you may be owed $1,000 – $10,000+ back.

As reported by
IRS Taxpayer AdvocateApril 2026
"Tens of millions of taxpayers may be eligible for significant tax refunds."
The New York TimesMay 2026
"The IRS may owe you a tax refund. Here's how to claim it."
The Wall Street Journal2026
"Millions of Americans eligible for tax refunds from COVID-era penalties."
FortuneMay 2026
"Am I eligible for IRS COVID tax refunds? How to qualify."
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$1.2B
Already refunded by the IRS
2,374
Claims checked on PenaltyBack
$2,383
Avg. individual refund
$27,645
Avg. business refund
4.9★
Customer rating
Founder featured inNew York TimesWall Street JournalForbesBloombergYahoo FinanceTax Notes

Claim your COVID penalty refund in 3 steps

Two minutes. We handle the paperwork.

1

Enter your info

Tell us your name and email. No sensitive data needed at this stage.

2

We scan your IRS records

Authorize view-only access to your IRS transcripts. We can never make changes to your account.

3

Get your refund estimate

We email your estimated refund. You review and sign — we handle the rest, including mailing the claim.

This isn't a loophole. It's a court ruling.

Two independent federal courts found the IRS had no legal authority to charge these penalties and interest.

Why the IRS may owe you money

When the pandemic hit, the IRS declared a nationwide disaster — which legally paused filing deadlines. But their automated systems kept issuing late-filing and late-payment penalties and interest as if nothing had changed.

In two separate cases, federal judges ruled that the IRS had no legal authority to assess these penalties and interest during an active disaster declaration. The IRS has already refunded $1.2 billion to some affected taxpayers — but millions more were charged under the same circumstances and haven't received anything.

A formal claim is required to request your refund. That's what PenaltyBack helps you do.

Abdo v. Commissioner (2024)
U.S. Tax Court — IRS penalties ruled invalid during the disaster declaration.
Kwong v. United States (2025)
Federal court — independently confirmed the IRS lacked authority to assess these penalties.
KD
The team filing your claim
Led by Kenneth Dettman, CPA — former Tax Partner at Alvarez & Marsal and Forbes Business Council member, who ran A&M's COVID-19 stimulus task force (2020–2021).

Two federal courts already ruled in taxpayers' favor. Don't miss the filing window.

The timeline

How we got here — and why you should act now.

  1. 2020
    The IRS kept charging penalties and interest during COVID
    The IRS declared a nationwide disaster — pausing filing deadlines. But their automated systems kept issuing late-filing and late-payment penalties and interest to millions of taxpayers.
  2. 2024
    Two federal courts said the IRS was wrong
    Judges in Abdo v. Commissioner and Kwong v. United States independently ruled that the IRS had no legal authority to assess these penalties and interest during an active disaster declaration.
  3. NOW
    Millions may be owed refunds
    The IRS has refunded $1.2 billion to some affected taxpayers — but millions more haven't received anything. A formal claim is required. The deadline to file is July 10, 2026.
From the founder
"I led the COVID stimulus task force at Alvarez & Marsal. When the courts ruled the IRS overstepped, I built PenaltyBack so taxpayers could actually get that money back."
KD
Kenneth Dettman, CPA
Founder, PenaltyBack · Co-founder, TaxNow
CPAForbes Business Council15+ yrs taxEx-Alvarez & Marsal Partner

What our clients are saying

Real people who discovered the IRS owed them money.

"Filed a return late and just paid the penalties without questioning it. Had no idea there was a court case that could get it back. The number genuinely surprised me."

Refund: $17,213
G
Greg M.
Boca Raton, FL

"We got hit with late-filing penalties on our S-Corp for two COVID years. Our bookkeeper called it the cost of doing business. Ran it through PenaltyBack and qualified for a six-figure recovery."

Refund: $123,363
S
Scott D.
Brockton, MA

"My accountant never mentioned this. A friend sent me the link, the check took about five minutes, and the refund was already sitting there waiting."

Refund: $2,690
T
Tamara R.
Coral Springs, FL

"Our LLC missed a filing deadline by about six weeks. We assumed the penalties were final. A colleague mentioned PenaltyBack — the whole amount came back."

Refund: $8,140
M
Marco P.
San Diego, CA
2,374 claims checked and counting
No win, no fee
$0 upfront

Free to check if you qualify. If you're owed a refund, we charge a percentage of the amount — and only if you get paid.

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Common questions

Everything you need to know before getting started.

Don't miss the last COVID stimulus.

If the IRS assessed penalties or interest on your returns between 2020 and 2023, federal courts say you're owed that money back. It takes 2 minutes to check — and it's completely free.

Questions? Call (740) 738-5559