Ohio Taxpayer Sues Government for $144K Refund
The suit challenges the IRS's denial of refund claims based on the agency's strict three-year filing deadline.
Updated on Oct. 29, 2026 in Taxes
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An Ohio resident is suing the federal government to reclaim over $144,400 in tax refunds denied by the IRS. The case challenges the agency's enforcement of its three-year filing window for applying net operating losses against prior tax years.
Why it matters
This dispute highlights the critical importance of strict adherence to tax filing deadlines, even when a taxpayer believes disaster relief measures like the CARES Act provide an extension. For households, failing to meet these rigid timelines can result in the loss of significant potential refunds.
The lawsuit seeks to recover $79,100 for the 2015 tax year and $65,300 for 2016. These claims stem from an attempt to apply a nearly $893,500 net operating loss from 2019 to those prior years.
The players
Kathleen Fogg
An Ohio resident and plaintiff in a federal tax lawsuit.
Internal Revenue Service
The federal agency responsible for tax collection, auditing, and enforcing filing deadlines.
The details
The plaintiff, Kathleen Fogg, contends that she is entitled to carry back a large 2019 net operating loss to offset income from 2015 and 2016. While the IRS rejected these claims for being filed after the standard three-year window, the taxpayer argues that pandemic-related disaster relief under the CARES Act extended the allowable filing period. The court must now determine if those specific relief provisions apply to this taxpayer's circumstances.
Timeline
The net operating loss occurred in 2019.
The income years involved in the refund claims are 2015 and 2016.
The lawsuit was filed on October 29, 2026.
Money Landscape
This case reflects the ongoing litigation surrounding the limits of tax relief measures enacted during the pandemic. It sits within a broader legal trend where taxpayers seek to extend statutory deadlines by invoking special disaster relief authority.
Review your own past tax returns if you experienced significant losses in 2019 or other recent years to ensure you filed any potential carryback claims within the standard three-year window. Consult with a qualified tax professional to confirm how specific disaster relief rules might apply to your unique financial situation.
The takeaway
This case serves as a reminder that the IRS strictly enforces its standard three-year window for refund claims, regardless of a taxpayer's interpretation of disaster relief extensions. Taxpayers should maintain careful records of filing dates and coordinate with a tax pro regarding potential carrybacks.
Further reading
For guidance on managing your filings, see our guide to Taxes.
Source note: This article includes information reported by Bloomberglaw.
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