New Delhi, July 3 -- A recent federal court ruling has opened the door for millions of Americans to potentially recover penalties and interest collected by the Internal Revenue Service (IRS) during the COVID-19 pandemic.

Even as many taxpayers continue waiting for refunds from the latest tax season, others could still be entitled to money tied to tax years dating back to 2020. The decision could also benefit some individuals who may have missed refund opportunities for tax years between 2019 and 2022.

However, eligible taxpayers must act before the deadline. In many cases, refund or protective claims must be submitted by 10 July 2026 to preserve the right to seek relief.

The ruling came in Kwong vs the United States, where a federal co...