Final COVID Stimulus — Filing Open

There's one final COVID stimulus you haven't claimed yet. The IRS wrongly charged you penalties and interest — and you're due a refund.

Two federal courts ruled the IRS had no legal authority to assess penalties and interest during COVID. If the IRS assessed penalties or interest on your returns 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…”
FortuneMay 2026

“Am I eligible for IRS COVID tax refunds? How to qualify.”
Verified 0:58
CO-FOUNDER · 60 SEC

“Why I built PenaltyBack”→

Kenneth Dettman, CPA
Co-founder, TaxNow & PenaltyBack
  • Ex-Tax Partner, Alvarez & Marsal
  • Led A&M's COVID-19 stimulus task force
  • Forbes Business Council
256-bit encrypted IRS-permissioned View-only access
$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 IN
New York Times Wall Street Journal Forbes Bloomberg Yahoo Finance Tax 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 yet.

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 amount. You review and sign — we handle the rest, including mailing the claim.

Claim my refund — free →
FREE · 30 SECONDS · NO SSN

Estimate your Kwong refund before you start

Same engine that has qualified thousands of taxpayers. No SSN, no credit card — just a quick estimate of what the IRS may owe you.

POWERED BY THE PENALTYBACK KWONG ENGINE
I'm filing as...
Tax years you may have been assessed IRS penalties & interest
Approximate amount you were assessed in penalties & interest
$4.2M+
ESTIMATED FOR TAXPAYERS
$2,400
AVG. ESTIMATE
60 sec
TO COMPLETE
Check My Eligibility — Free →
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 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 penalties and interest 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 disaster declaration
Kwong v. United States (2025)
Federal court — independently confirmed IRS lacked authority to assess penalties
Kenneth Dettman, CPA
The team filing your claim
Led by Kenneth Dettman, CPA — former Tax Partner at Alvarez & Marsal, 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.

Claim my refund — free →

The timeline

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

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.

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.

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.”
Kenneth Dettman, CPA
Kenneth Dettman, CPA
Founder, PenaltyBack · Co-founder, TaxNow
CPA Forbes Business Council 15+ yrs tax Ex-Alvarez & Marsal Partner
Watch 60-second intro →

What our clients are saying

Real people who discovered the IRS owed them money.

★★★★★

"I filed my 2020 return a few months late and just paid the penalties and interest without thinking twice. Had no idea there was a court case that could get it back. $17,200 — I about fell out of my chair."

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

"We got hit with late-filing penalties and interest on our S-Corp for two years during COVID. Our bookkeeper said it was just the cost of doing business. Ran it through PenaltyBack and qualified for over $120K back. Wish I'd known sooner."

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

"My accountant never brought this up. I only found out because a friend shared the link. Took maybe 5 minutes to check and turns out I had $2,690 sitting there. Already got my check."

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

"Our LLC missed the filing deadline by about six weeks — life just got in the way. We figured the $8K in penalties and interest was done. A colleague told us about PenaltyBack and we got the whole thing refunded."

Refund: $8,140
Marco P.
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.

  • Free eligibility check
  • No upfront cost
  • Pay only if you get paid
Check if I qualify — free →

Common questions

Everything you need to know before getting started.

What does this actually cost?

Checking your eligibility is completely free. If you qualify and we recover a refund for you, our fee is a percentage of what we get back — so you never pay out of pocket. If we don't recover anything, you owe us nothing.

Do I need my old tax returns to get started?

No. We just need your basic info to check your eligibility. If you qualify, we handle pulling the records we need from the IRS directly. You don't need to dig up any old paperwork.

Is this legitimate?

Yes. This is based on two independent federal court rulings — Abdo v. Commissioner (2024) and Kwong v. United States (2025) — where judges found the IRS had no legal authority to assess penalties and interest during the COVID disaster declaration. PenaltyBack is a product of TaxNow, an IRS-permissioned tax data provider.

How do you access my IRS records?

We use the IRS's official e-Services system with Circular 230-level access. You authorize view-only access to your tax transcripts — we can never make changes, file returns, or modify anything on your account.

What if the government appeals the ruling?

That's exactly why we file a formal claim with the IRS — it preserves your right to a refund regardless of future appeals. If the rulings are upheld, your claim is already in the system. If they're overturned, you owe nothing.

Why does it take 5–7 business days?

After you authorize access, we pull your IRS transcripts (which can take 1–2 business days), then our team reviews the data to identify qualifying penalties and interest and calculate your estimated refund.

What if I don't qualify?

If our review shows you don't have qualifying penalties or interest, we'll let you know — and you won't be charged anything. The eligibility check and IRS record review are completely free.

Is my information safe?

Your data is protected with 256-bit encryption (the same level used by banks). We never share your personal information with third parties. All IRS access is view-only.

Can I check multiple taxpayers?

Yes! You can check for both your personal taxes and your business taxes. Each check requires a separate submission because we link your email to your SSN or EIN to securely pull the correct IRS records.

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.

Claim my refund — free →

Questions? Call (740) 738-5559