New Tax Case Precedent

The federally declared COVID-19 disaster period ran from January 20, 2020, through May 11, 2023. Two recent cases, Kwong and Abdo, suggest the accrual of interest on federal tax underpayments and the accrual of the monthly failure to pay tax penalty at a maximum amount of 1% per month were suspended for the entire disaster period plus 60 days or until July 10, 2023. We are in the process of attempting to determine the clients who these decisions may impact.

If you had a federal tax liability on which interest accrued or were subject to the failure to pay penalty during the period January 20, 2020 through July 10, 2023, please let us know or contact your tax advisor as you may be entitled to abatement or a refund if you timely file a claim for refund.