Written by Dave McGuire of McGuire Sponsel
Key Takeaways
- Only IEEPA tariffs qualify for refunds. Not all tariffs are eligible. Tariffs imposed under Section 232, Section 301, and other authorities are generally not included in the current refund process.
- Eligibility often depends on Importer of Record status and entry liquidation status. Whether an entry is unliquidated, recently liquidated, or finally liquidated may affect an importer’s ability to recover tariffs.
- Time is critical. CBP is processing refunds in phases, and ongoing litigation could impact future refund opportunities, making it important to evaluate claims as soon as possible.
- Tariff refunds may have tax implications. Refunds can affect taxable income, inventory costs, cost of goods sold, and other tax calculations, so businesses should involve their CPA early in the process.
Businesses that paid tariffs under the International Emergency Economic Powers Act (IEEPA) may now have an opportunity to recover significant amounts of money. Following a landmark Supreme Court decision on February 20, 2026, many importers are evaluating whether they qualify for tariff refunds and how quickly they need to act to preserve their claims.
As refund processing begins through U.S. Customs and Border Protection (CBP), importers should understand who qualifies, which tariffs are eligible, what deadlines apply, and why involving tax advisors and CPAs remains essential throughout the process.
Background: The Supreme Court’s IEEPA Tariff Decision
In February 2025, President Donald Trump began implementing tariffs through a series of executive orders. The administration relied on authority under the International Emergency Economic Powers Act (IEEPA) to impose these tariffs.
On February 20, 2026, the Supreme Court ruled that IEEPA does not authorize the President to impose the tariffs at issue. As a result, the federal government became responsible for refunding tariffs collected under the IEEPA framework.
Following the ruling, U.S. Customs and Border Protection (CBP) began establishing procedures to process refund claims. While CBP has indicated that refunds may take approximately 60 to 90 days to process, many importers have reported receiving payments significantly faster.
For companies that paid substantial duties under the IEEPA tariff regime, the potential refunds could represent a meaningful recovery of capital and cash flow.
Who Qualifies for an IEEPA Tariff Refund?
Not every importer or tariff payer will qualify for a refund.
The first requirement is that the tariffs must have been paid under the IEEPA tariff program. Many tariffs currently in effect were imposed under separate statutory authorities and are not affected by the Supreme Court’s ruling.
The second requirement is that the claimant must generally be the Importer of Record (IOR). The Importer of Record is the party legally responsible for ensuring imported goods comply with all customs laws and for paying duties, taxes, and fees associated with the importation.
Companies should carefully review their customs records to determine whether they served as the Importer of Record on entries where IEEPA duties were assessed and paid.
Which Tariffs Are Eligible for Refunds?
One of the most common misconceptions surrounding the Supreme Court decision is that all tariffs are now eligible for refunds. That is not the case.
Currently, only tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are eligible for refund consideration as a result of the ruling.
Importers should not assume that other tariff programs are included. For example, shortly after the ruling, the Trump Administration imposed a 10% global tariff under Section 122. Although courts have questioned the legality of that tariff, duties paid under Section 122 are not currently eligible for refund through the IEEPA refund process.
Other tariffs that generally remain outside the scope of current refund eligibility include:
- Steel and aluminum tariffs imposed under Section 232
- China-related tariffs imposed under Section 301
- Other tariffs implemented under separate statutory authorities
Because multiple tariff programs may apply to the same imported goods, businesses should conduct a detailed review of entry documentation to identify which duties were specifically assessed under IEEPA.
Understanding the Refund Claim Process
Many importers rely on customs brokers, freight forwarders, and trade compliance providers to manage customs filings. In some cases, those providers are actively assisting clients with IEEPA refund claims.
However, not every importer has a service provider handling this process. Businesses should confirm whether their customs and logistics partners are actively pursuing available refunds and whether any additional documentation is required.
For companies whose existing service providers are not handling claims, professional assistance may be necessary to evaluate eligibility, prepare filings, and ensure deadlines are met.
Given the evolving nature of the refund program, many businesses are seeking legal, customs, and tax guidance to avoid missing opportunities or making procedural errors.
Filing Deadlines May Be the Most Important Issue
Perhaps the most critical aspect of the refund process is timing.
CBP has reportedly implemented a phased approach to refund processing.
Phase 1 covers entries that were not fully liquidated when refund processing began, along with claims that liquidated within the 80 days preceding the start of the refund program.
Phase 2 is expected to open at the end of June
Phase 3 is expected to open in July and cover additional entries not included in earlier phases.
At the same time, ongoing litigation continues to create uncertainty. The Trump Administration is appealing certain aspects of the refund ruling, including whether the government can be required to broadly issue refunds for entries that have already become finally liquidated.
This distinction is extremely important because an importer’s ability to recover IEEPA tariffs may depend on the liquidation status of each entry.
Unliquidated Entries
Unliquidated entries generally provide the most straightforward path for seeking refunds because customs processing remains open.
Recently Liquidated Entries
Entries that recently liquidated may still allow importers to pursue claims through available protest procedures or other refund mechanisms.
Finally Liquidated Entries
Finally liquidated entries often present the greatest challenges. Once an entry reaches final liquidation, available remedies may become significantly more limited depending on future court decisions and CBP guidance.
Importers should not assume that refund opportunities will remain available indefinitely. Filing windows are limited, and future court rulings or agency guidance could narrow available options.
Documentation Importers Should Gather Immediately
Because deadlines are approaching and litigation remains ongoing, businesses should begin organizing records as soon as possible.
Key documentation includes:
- Entry summaries and customs filing records
- Proof of tariff payments
- Importer of Record documentation
- Liquidation notices
- Correspondence from customs brokers or freight providers
- Historical customs accounting records
Companies should also complete the following steps:
- Identify entries where IEEPA duties were paid.
- Confirm that the company was the Importer of Record.
- Determine whether entries are unliquidated, liquidated, or finally liquidated.
- Evaluate available refund opportunities.
- Submit refund claims or protective filings where appropriate.
Businesses with access to the Automated Commercial Environment (ACE) portal should regularly monitor their accounts to review entry status, track claims, and identify any required next steps.
Why Your CPA Should Be Involved in the Refund Process
Receiving a tariff refund may create important tax consequences that businesses should not overlook.
Many companies treated tariff costs differently for accounting and tax purposes. Depending on the circumstances, tariffs may have been:
- Included in cost of goods sold (COGS)
- Capitalized into inventory costs
- Added to the basis of capital assets
- Recorded as ordinary business expenses
When a refund is received, the tax treatment may need to be adjusted accordingly.
For example, a refund could affect future taxable income, inventory calculations, depreciation schedules, or previously reported deductions. The impact will vary depending on how the original tariff costs were treated and the taxpayer’s specific facts and circumstances.
Involving a CPA early in the process can help ensure that refunds are properly recorded and that any resulting tax implications are addressed before filing future returns.
Final Thoughts
The Supreme Court’s ruling on IEEPA tariffs has created a significant opportunity for importers to recover duties that may have been improperly collected. However, eligibility depends on several factors, including the type of tariff paid, Importer of Record status, and the liquidation status of each entry.
With refund phases already underway and ongoing litigation potentially affecting future claims, businesses should move quickly to evaluate their eligibility and preserve their rights. Gathering documentation, reviewing customs records, and consulting with customs professionals, legal advisors, and CPAs can help ensure that valuable refund opportunities are not missed.
For many importers, the window to recover IEEPA tariffs may be open today, but it may not remain open forever.
Need Help Evaluating Your IEEPA Tariff Refund Opportunity?
Determining whether your business qualifies for an IEEPA tariff refund can be more complicated than it first appears. Eligibility depends on several factors, including the type of tariff paid, Importer of Record status, liquidation status, and filing deadlines.
DHJJ is working with McGuire Sponsel to help businesses identify potential refund opportunities, evaluate eligibility, navigate the filing process, and understand the related tax implications. Whether you’re unsure if your tariffs qualify or need assistance reviewing customs records and documentation, our team can help you assess your options and determine the next steps.
Frequently Asked Questions About IEEPA Tariff Refunds
Who is eligible for an IEEPA tariff refund?
Generally, the Importer of Record (IOR) that paid tariffs under the IEEPA program may be eligible for a refund, subject to CBP requirements and the status of the customs entry.
Are all tariffs eligible for refunds?
No. Currently, only tariffs imposed under IEEPA are affected by the Supreme Court’s ruling. Tariffs imposed under Section 232, Section 301, and other authorities are generally not eligible.
Why does liquidation status matter?
The ability to recover tariffs may depend on whether an entry is unliquidated, recently liquidated, or finally liquidated. Different rules and filing options may apply to each status.
What records should I gather?
Importers should collect entry summaries, proof of tariff payments, liquidation notices, Importer of Record documentation, and communications from customs brokers or freight providers.
Are tariff refunds taxable?
Potentially. The tax treatment depends on how the original tariff costs were reported. Businesses should consult with their CPA to understand any resulting tax implications.
