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Accountancy Slice
North America
A federal court has ruled that U.S. tax filing and payment deadlines were effectively suspended from January 20, 2020 to July 10, 2023, after pandemic-era disaster declarations combined with a 2019 change to the tax code paused statutory deadlines. The decision has triggered a scramble among taxpayers and lawyers seeking refunds of interest and penalties paid during the period, with companies including Western Digital suing for millions of dollars and potential class actions emerging on behalf of individual taxpayers. Attorneys argue the IRS may have improperly charged interest or failed to pay refund interest during what the court says was an extended disaster window. The government can appeal the ruling, and many taxpayers may already be outside the usual time limits for filing claims. Congress amended the law in 2021 to prevent a similar open-ended suspension in future disasters, but that fix applies only prospectively.
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