The IRS on Monday lost out on an attempt to toss a lawsuit filed by a woman who claims an IRS agent violated her right to bodily privacy by following her into her home restroom and insisted on watching her relieve herself.

The U.S. Court of Appeals for the Ninth Circuit found that IRS agent Jean Noll was not entitled to qualified immunity for claims relating to the incident, which occurred in 2006 while she and other IRS agents were serving a search warrant during a criminal tax fraud and conspiracy investigation targeting Michael Ioane Sr., the husband of plaintiff Shelly Ioane.

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