Texas Woman Ends Suit Over $2.9 Million Covid Carryback Refund

A Texas woman dropped a lawsuit seeking $2.9 million in tax refunds tied to pandemic-era net operating loss carrybacks after reaching an agreement with the government and her ex-husband to resolve the case.

Janice Simpson, her former husband Bobby Simpson, and the US government filed a joint stipulation asking the US District Court for the Northern District of Texas to dismiss the case with prejudice, with each side bearing its own litigation costs and attorney fees.

Simpson’s suit, filed in November 2024, alleged the IRS wrongly denied her refund claim stemming from a net operating loss carryback under the CARES ...