BanditAI
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
Potential Refund
$2,400 $4,900 $6,350 $8,945
IRS Penalty Assessments
2020–2023
4.9/5
52,784 verified reviews
$1.2B
Already refunded by the IRS
2,374
Claims checked on PenaltyBack
$2,383
Avg. individual refund
$27,645
Avg. business refund
How it works
Two minutes. We handle the paperwork.
Individuals & Businesses
Claim your COVID penalty refund in 3 steps
Enter your info
Tell us your name and email. No sensitive data is needed yet.
We scan your IRS records
Authorize view-only access to your IRS transcripts. We can never make changes to your account.
Get your refund estimate
We email your estimated refund amount. You review and sign—we handle the rest, including mailing the claim.
Tax Professionals
Refer clients, we do the work, you get paid
Get your referral link
Optionally brand it with your firm name, logo, and colors for a seamless client experience.
Share with clients
Send via email, SMS, LinkedIn, or embed the intake flow directly on your website.
We handle everything else
Your client signs an engagement letter, PenaltyBack files Form 843, the IRS issues the refund, and you earn a referral fee.
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
Two federal courts already ruled in taxpayers' favor. Don't miss the filing window.
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.
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
Frequently Asked Questions
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.
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.
Yes. This is based on real federal court rulings — Abdo v. Commissioner (2024) and Kwong v. United States (2025). These are not loopholes; they are binding legal decisions that found the IRS acted without authority.
You authorize view-only IRS transcript access through the IRS's own secure system. We can read your records to identify refund eligibility, but we can never make any changes to your account.
The rulings are from two independent federal courts. Even if appealed, claims filed before the deadline are protected. Acting now ensures your claim is in before the July 10, 2026 window closes.
After you authorize IRS access, we retrieve your transcripts, analyze your penalty history, calculate your refund estimate, and prepare your claim documentation. This typically takes 5–7 business days.
If you don't qualify, you owe us nothing. The eligibility check is completely free and there is no obligation to proceed.
Yes. All data is 256-bit encrypted. We only request view-only IRS access and never store sensitive financial credentials. Your data is protected under our Privacy Policy.
Yes. Tax professionals and accountants can check eligibility for multiple clients. Contact us for bulk or professional access options.
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.