A recent federal court decision has opened a time-sensitive opportunity that most tax professionals have not yet acted on, and dental practice owners should be aware of it before it disappears. If your practice incurred IRS penalties or interest during the COVID era, there may be a legitimate legal pathway to recover some of that money. But the window to act is closing, and once it closes, there is no second chance.
What the Kwong Decision Means for Dental Practice Owners
In November 2025, the U.S. Court of Federal Claims issued a decision in Kwong v. United States that confirmed a specific legal mechanism under the tax code. The ruling affirmed that the COVID-era disaster postponement period under IRC Section 7508A(d) can be used to pursue refunds or abatements of penalties and interest that accumulated during that time.
For dental practices, this matters because many practice owners faced real financial disruption during the pandemic. Offices were forced to close or significantly reduce operations. Revenue dropped sharply. Filing deadlines were missed, payments were delayed, and in many cases, penalties and interest piled up as a result. The Kwong decision suggests that some of those charges may be recoverable.
The Mechanism: A Protective Form 843 Claim
The way to access this opportunity is through a protective Form 843 claim. Form 843 is an IRS claim for refund or abatement, and filing it protectively means you are preserving your legal right to a refund or abatement before the statute of limitations closes.
The word “protective” is important here. You are not necessarily saying you are owed money today with complete certainty. You are filing a claim that keeps the door open while the legal and procedural questions are sorted out. If you do not file before the window closes, you lose the right entirely. There is no appeals process after the fact. There is no way to go back.
This is the kind of situation where acting early costs very little, but waiting can cost everything.
Why Most Tax Professionals Have Not Addressed This Yet
The Kwong decision is recent, and the mechanism it confirms is technical. Many general tax preparers and even CPAs who do not specialize in tax controversy or federal tax law may simply not be aware of it yet. That is not a criticism of those professionals. Tax law is vast and evolving, and a November 2025 court ruling may not have made it into their workflow or continuing education yet.
For dental practice owners, this is exactly why working with a CPA who specializes in your industry and stays current on developments like this matters. A generalist may prepare your return accurately every year and still miss a narrow, time-sensitive opportunity that exists right now because of a specific court ruling.
Practical Considerations for Dental Practice Owners
If your practice was hit with IRS penalties or interest during the COVID years, the most important thing you can do right now is have a conversation with your CPA about whether a protective Form 843 claim applies to your situation. You do not need to know the answer yourself. You just need to raise the question before the opportunity expires.
The questions worth asking are straightforward. Did your practice incur penalties or interest between 2020 and 2022 related to late filings or late payments? Were those charges connected to COVID-era disruption? Has your CPA reviewed the Kwong decision and evaluated whether a protective 843 claim is appropriate for your situation?
Even if the ultimate recovery is modest, the cost of filing a protective claim is low compared to the potential benefit. And if the answer turns out to be that your practice is not eligible, at least you will know you did not leave money on the table without checking.
Final Thoughts
Tax law does not wait for convenient timing. Decisions like Kwong v. United States create real, actionable opportunities, but those opportunities have hard deadlines. Dental practice owners who were financially impacted during the pandemic should not assume that the statute of limitations has already passed or that nothing can be done. The right conversation with the right tax professional, happening right now, could make a meaningful difference.
If your practice incurred penalties or interest during the COVID era and you want to understand whether a protective Form 843 claim applies to your situation, contact Dental CPA to schedule a consultation.