While the standard April 15 tax deadline has passed, a significant new window has opened for millions of Americans. Tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest that the IRS assessed during the nearly 3.5-year COVID-19 federal disaster period. Most must act by July 10, 2026. This “protective claim” window is a critical opportunity for those who were assessed penalties or interest during that period.
Unclaimed funds also result from unfiled returns where withholdings or refundable credits, like the Earned Income Tax Credit (EITC) or Child Tax Credit, were never claimed. The IRS estimated that approximately $1.2 billion in refunds remained unclaimed for taxpayers who had not filed their 2022 Form 1040, with a median unclaimed refund of $686. That April 15, 2026 window for 2022 returns has now closed, but the same dynamic applies to 2023 returns, where the deadline runs to April 15, 2027. If you suspect the IRS holds money belonging to you, the steps below will help you find out.
The New July Deadline: Protective Claims
In Kwong v. United States, 179 Fed. Cl. 382 (Nov. 2025), the U.S. Court of Federal Claims interpreted the pre-2025 version of IRC Section 7508A(d) and held that the COVID-19 disaster declaration triggered an automatic suspension of filing and payment deadlines that ran the full length of the declared disaster period, from January 20, 2020 through July 10, 2023. The IRS is facing claims that this disaster period effectively suspended certain obligations, and although the IRS has appealed the decision, the issue remains unsettled.
To preserve your rights, you may need to file Form 843, Claim for Refund and Request for Abatement, by July 10, 2026. Note that the IRS redesigned Form 843 in December 2024, so the current version is Form 843 (Rev. 12-2024), and the line numbers and checkboxes differ from older copies found online. Taxpayers should write “Protective Refund Claim Pursuant to Kwong Case” or similar language across the top of the form and fill in as much detail as possible. The National Taxpayer Advocate recommends sending it by certified mail with return receipt requested, so you have proof of the filing date if the claim is misplaced.
What Happens to Unclaimed Refunds?
Under the law, taxpayers generally have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury. For instance, the deadline to claim a 2023 refund is typically April 15, 2027. Once that window closes, taxpayers lose all rights to recover those funds, regardless of eligibility.
Does the IRS Owe You Money?
Several tools and steps can help you determine whether the IRS is holding a refund on your behalf.
- Check IRS tools. Visit the IRS website and use the “Where’s My Refund?” tool at irs.gov/refunds. You will need your Social Security Number, filing status, and exact refund amount to look up your status.
- New for 2026: The Tax Debt Help Tool. Launched in April 2026, the IRS Tax Debt Help Tool is a self-service interactive guide that allows you to explore resolution options and non-filing status without entering a Social Security Number initially.
- Review Past Returns. Check your W-2s or 1099s to see if taxes were withheld. For 2024, single filers with incomes under $14,600 (or $29,200 for joint filers) are not required to file but could still claim refunds for withheld taxes.
- Verify Interest on Overpayments. For the second quarter of 2026 (April through June), the IRS overpayment rate for individuals is 6% per year, compounded daily. Beginning July 1, 2026, that rate rises back to 7% for the third quarter. If the IRS has held your refund beyond the standard 45-day processing window, it owes you interest at these rates.
How to Claim Your Refund
Once you confirm the IRS owes you money, the first step is to file a return if you have not already done so. If you did file but it contained errors, submit Form 1040-X (Amended U.S. Individual Income Tax Return) within three years of the original filing date. If a refund check was returned undeliverable, submit Form 8822 (Change of Address) so any reissued checks reach you. For checks that were lost or never arrived, complete Form 3911 (Taxpayer Statement Regarding Refund) to initiate a replacement.
Claiming Refunds for a Deceased Relative
Heirs may claim a deceased relative’s unclaimed tax refund under specific IRS rules. Form 1310 was recently revised to reduce paperwork: a court-appointed representative filing an original return no longer needs to file it. However, if you are claiming a refund on an amended return (Form 1040-X) for a decedent, Form 1310 is still strictly required. Heirs navigating this process should gather the decedent’s prior-year W-2s and 1099s early, since locating those records often takes the most time.
Conclusion
Unclaimed tax refunds represent a real opportunity to recover money you are legitimately owed, but 2026 has brought new deadlines and updated tools that make acting promptly more important than ever. The Kwong protective claim window closes July 10, 2026 for most taxpayers, the 2023 unclaimed-refund deadline arrives April 15, 2027, and IRS overpayment interest is set to increase to 7% starting July 1. Whether the issue involves COVID-era penalties, withheld wages, or refundable credits never claimed, a modest effort now can prevent permanently forfeiting funds.
Editor’s note: This update adds the full case citation for Kwong v. United States (179 Fed. Cl. 382, Nov. 2025), notes the IRS has appealed that decision, flags the redesigned Form 843 (Rev. 12-2024), updates the overpayment interest rate to reflect the Q3 2026 increase to 7% effective July 1, and clarifies that the April 15, 2026 deadline for unclaimed 2022 refunds (covering $1.2 billion and 1.3 million taxpayers) has now passed, with April 15, 2027 as the next comparable deadline for 2023 returns.
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