Millions of Americans could soon receive surprise payouts

May 11, 2026 7:16 PM

The IRS may have illegally seized over $3 billion from 22 million households by wrongly imposing penalties during the Covid-19 disaster period. While a federal court ruled these charges were improper, the IRS is fighting to keep your money and won't issue refunds automatically. You must manually mail a paper form by July 10 to protect your rights, or you'll lose your claim forever even if the government loses the case. Is it fair for the IRS to keep money it took illegally?
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