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Ever get confused doing your taxes? Same. Or worse — realize you owe? Ugh. Well, anytime we can alert local business owners to a tax refund, you can guaran-damn-tee we’re your Huckleberry.
Here’s the deal: A landmark federal court case, Kwong v. United States, among others, centers on a code provision stating that tax returns and payments due during the three-and-a-half-year COVID-19 federal disaster period should not have been considered “late” until after the disaster period ended. As such, millions may be eligible for a refund or a reduction of assessed penalties and interest for that period.
Convoluted catches, but maybe still worth it
Still with us? It’s a bit convoluted, but the point is that this news could mean a nice little payday for many businesses across the country. However, there are a couple of catches.
First, refunds will not happen automatically. If you think you may be owed, you must apply by Friday, July 10, 2026. Second, the Department of Justice may appeal this decision. As reported by the Taxpayer Advocate Service, the issue could take several years to resolve.
For now, both the Texas Restaurant Association and its partner, Adesso Capital, want to make sure that members of the Texas restaurant industry have all the information they need to move forward.
“We’re working as fast as we can to get the word out,” says Adesso CEO Damon Maletta. “These folks have a really tough time. They’re creating jobs, the margins are small, and then you throw in the pandemic, inflation, supply chain, and on and on. It’s really tough.”
Here’s an email statement from the Texas Restaurant Association:
“If you took advantage of federal resources during COVID-19 including PPP or an SBA loan, two recent court cases have opened the door for thousands of independent small business owners to recover interest and penalties from the IRS. Our partner, Adesso Capital, can help you determine if you are eligible and fast track your refund. Read more below or get started here.”
Applications can be filed through Adesso, which is a financial services company that works with many industry associations in the hospitality sector. Of course, we’re not financial or tax advisors; we’re just sharing information from the Texas Restaurant Association.
The process can also be initiated directly through the IRS via Form 843, Claim for Refund and Request for Abatement. Remember to get your application in by July 10, and you could get a nice check when the dust settles.
