Ohio Resident Sues IRS for Tax Refund

A taxpayer is challenging an IRS denial of claims worth over $144,400 regarding net operating loss carrybacks.

Updated on Oct. 29, 2026 in Taxes

Bold flat-color editorial illustration of a filing drawer with stone blocks, representing federal tax litigation and procedural policy. — Kathleen Fogg has sued the U.S. government in federal court in Ohio, seeking a $144,400 tax refund previously denied by the IRS. AI Illustration. Upload story photo >

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Kathleen Fogg has filed a lawsuit in federal court against the U.S. government seeking more than $144,400 in tax refunds. The IRS previously denied her claims, citing a missed three-year filing deadline for the requested tax years.

Why it matters

The case hinges on whether COVID-19 relief provisions under the CARES Act effectively extended the filing window for applying net operating losses to prior years. If the court sides with the taxpayer, it could provide a precedent for how pandemic-era tax relief interacts with standard statutory limitations.

The plaintiff seeks $79,100 for 2015 and $65,300 for 2016 based on a 2019 net operating loss of nearly $893,500. The IRS claims these filings fall outside the standard three-year window for tax refund requests.

The players

Kathleen Fogg

The Ohio resident and plaintiff who is currently suing the federal government over denied tax refund claims.

Internal Revenue Service

The federal agency responsible for tax collection that denied the refund claims based on its interpretation of filing deadlines.

The details

Fogg argues that the CARES Act, enacted during the COVID-19 pandemic, granted an extension for filing these specific claims. The litigation is currently moving through the Northern District of Ohio.

2015 was the tax year for the first refund claim.
2016 was the tax year for the second refund claim.
2019 was the year Fogg recorded a net operating loss of nearly $893,500.
October 29, 2026 was the date the lawsuit was filed.

Market Dynamics

The case centers on the interpretation of the CARES Act regarding pandemic-era filing extensions. This litigation tests how taxpayers can apply historical operating losses against past income during periods of emergency relief.

This case highlights the risks for taxpayers attempting to retroactively apply losses from a different year toward prior tax liabilities. If the challenge succeeds, it may create a path for others to seek refunds they previously believed were barred by standard deadlines.

The takeaway

Taxpayers should carefully document reliance on pandemic-era legislation when filing claims that appear to fall outside standard regulatory windows. Consulting with a qualified tax professional is essential when interpreting how emergency acts may influence your specific filing eligibility.