A federal court ruling could mean millions of Americans are eligible for IRS refunds tied to the COVID-19 pandemic.

The court ruled in November that the pandemic qualified as a federally declared disaster from Jan. 20, 2020, through May 11, 2023. Under tax code Section 7508A(d), this provision postpones tax deadlines by 60 days. The new tax deadline for years 2019 through 2022 would have fallen on July 10, 2023, according to USA Today and KSTP.

Tax attorneys argue that the IRS may not have had the authority to charge penalties or interest during that time.

“Because it was a disaster for those three years, technically the courts have said the taxes were not due at all during those times,” Jon Gustafson with Venn Tax and Bookkeeping in Blaine, Minnesota, told KSTP.

Here’s everything taxpayers need to know about the refund, including who qualifies, the tax deadline and how to make a claim.

Who qualifies for the COVID-19 refund?

If any business or individual were charged with penalties or interest between Jan. 20, 2020, and July 10, 2023, they are likely owed an IRS refund, according to USA Today.

“The potential dollar amounts could be significant, particularly for businesses that faced liquidity challenges during the pandemic and incurred substantial failure-to-pay (taxes) penalties,” Jessica Marine, a partner at Frost Law, wrote in a February blog post.

Key details on the tax deadline

There is a statute of limitations to file a refund claim, which runs three years from the time the return was filed or two years after the taxes were paid, tax lawyers said.

However, taxpayers have a limited time to file the necessary claims and paperwork to receive the funds. Since the initial deadline was July 10, 2023, they have exactly three years from that date, July 10, 2026.

“Millions of taxpayers could be eligible, but if people don’t file claims before July 10, 2026, they lose out on the potential for a refund or abatement,” Jon Wasser, a partner at Fox Rothschild, who specializes in tax issues, said in a statement obtained by USA Today.

How to file a claim?

According to Wasser, taxpayers should review their IRS records to see if they were charged any penalties or interest during their tax filings between 2020 and 2023.

To check for eligibility, taxpayers should consult a tax professional, or their IRS tax transcripts can be helpful tools for this information.

Claims can be submitted using IRS Form 843, often as a protective claim and a request for abatement using information from the tax transcript.