In this episode of the Tax Section Odyssey podcast, host April Walker is joined by Michael Waalkes of Kostelanetz LLP to discuss Kwong v. United States and why it has become a practical, time-sensitive issue for CPA firms after filing season. The episode discusses the facts of the case and what it held at a high level, why Sec. 7508A's COVID disaster relief period (through July 10, 2023) is driving renewed attention, and how the reasoning may affect deadlines, refund-suit timing, and potential interest/penalty arguments for certain clients. The conversation focuses on what firms are doing right now — client communications, internal triage, documentation, and risk management — along with how to think about tools like client alerts and protective claims while the law and potential IRS guidance continue to develop.

Questions answered in this episode:

• What did Kwong v. United States actually hold, and why did it is a "post–April 15" priority for firms?
• How does Sec. 7508A's COVID disaster relief period (through July 10, 2023) affect statutes of limitation and other key deadlines?
• Which clients and fact patterns should firms' triage that might be affected by this ruling?
• What's the practical risk-management approach when the law is still unsettled?
• What is a "protective claim," and when might it make sense (or not) in the context of Kwong and potential interest/penalty arguments?

AICPA resources

AICPA IRS Practice & Procedures resource center

Disaster Tax Relief Procedures and Processes

Other resources

National Taxpayer Advocate Blog: Tens of Millions of Taxpayers May be Eligible for Significant Tax Refunds - If they act by July 10

KWONG v. USA court decision

Keep your finger on the pulse of the dynamic and evolving tax landscape with insights from tax thought leaders in the AICPA Tax Section. The Tax Section Odyssey podcast includes a digest of tax developments, trending issues and practice management tips that you need to be aware of to elevate your professional development and your firm practices.

This resource is part of the robust tax resource library available from the AICPA Tax Section. The Tax Section is your go-to home base for staying up to date on the latest tax developments and providing the edge you need for upskilling your professional development. If you're not already a member, consider joining this prestigious community of your tax peers. You'll get free CPE, access to rich technical content such as our Annual Tax Compliance Kit, a weekly member newsletter and a digital subscription to The Tax Adviser.