Case: U.S. Court Rules COVID-19 Disaster Declaration Extends Tax Refund Claim Deadlines

The U.S. Court of Federal Claims held that the taxpayer’s claims for refunds of paid tax penalties were timely filed, partially denying the government’s motion for summary judgment. Taxpayer, an individual business owner, filed suit seeking refunds of penalties paid for several tax years. The government argued that the claims were untimely under the two-year statute of limitations in I.R.C. §6532. The court held that the COVID-19 disaster declaration extended the filing deadline under I.R.C. §7508A, making the taxpayer’s suit timely for the relevant years. The court held that the plain language of the 2019 version of I.R.C. §7508A allowed ...