A Denver District Court judge has dismissed a 2021 lawsuit filed by Phil and Nancy Anschutz over a tax refund tied to the pandemic.

Phil and Nancy Anschutz sought the dismissal of the case.  

The couple filed amended federal and state income tax returns for 2018, claiming refunds tied to those returns, according to court documents. The refunds were tied to the Coronavirus Aid, Relief and Economic Security (CARES) Act, which suspended excess business loss deduction limits for the 2018 and 2019 tax years. 

At the same time, the Colorado General Assembly amended the state tax code via a law signed in July to prevent taxpayers from using certain CARES Act provisions in calculating their Colorado taxable income. What that meant is that taxpayers had to add back to their taxable income the amount by which their federal taxable income was reduced by any “excess business loss.” 

That could render deductions by the Anschutz couple totaling about $8 million void – except that they filed their returns in April, prior to the law’s implementation date of July 11.

Still, the Department of Revenue, which conducted emergency rulemaking after the law was passed in order to state the deduction was not “operative” in Colorado, denied the Anschutz claim. 

The Phil and Nancy Anschutz sued the department, claiming that the state had to follow federal tax law. 

Denver District Court Judge J. Eric Elliff granted the state’s motion to dismiss. The Anschutz couple appealed to the Colorado Court of Appeals.

Last November, the appeals court reversed the lower court’s ruling and sent it back to the lower court for resolution. 

On Monday, the lawsuit was dismissed.

The order tied to the lawsuit said all claims asserted by Phil and Nancy Anschutz in their April 2021 appeal will be dismissed with prejudice, meaning it can’t be filed again, and each party would cover its own attorneys fees and costs.

Ellliff signed off on the order Monday.