Woman Sues Government for $2.9 Million Covid-19 Carryback Refund

A Texas woman who divorced her husband filed a lawsuit against the federal government for a tax refund of nearly $2.9 million plus interest for the 2014 tax year related to a carryback of 2019 net operating losses.

Janice L. Simpson is seeking a refund under the Coronavirus Aid, Relief, and Economic Security Act and the Internal Revenue Code, according to a complaint filed Thursday with the US District Court for the Northern District of Texas. The complaint alleges the IRS wrongly denied Simpson’s refund claim because it misinterpreted its own policies regarding the statute of limitations for assessment when ...