West Virginia Senator Jim Justice Settles $5M Tax Debt

U.S. Senator Jim Justice, a prominent Republican from West Virginia, and his wife, Cathy Justice, have reached an agreement to settle a federal tax debt exceeding $5 million. This resolution comes swiftly after the couple faced a lawsuit from the federal government concerning the long-standing 16-year-old obligation.

The legal action, initiated on Monday in a federal court within their home state of West Virginia, alleged that the Justices had been repeatedly notified by the U.S. Treasury Department about the outstanding funds since 2009. Despite these notices, the complaint asserted, they had “neglected or refused to make full payment of those assessments.” The original filing specifically sought the repayment of nearly $5.2 million, along with any additional relief the court deemed “just and proper.”

Rapid Settlement Reached

Hours after the lawsuit’s public filing, a separate document confirmed a settlement. The U.S. Justice Department announced an agreement with Senator Justice and Cathy Justice, who also serves on West Virginia’s state board of education. Under the terms, the couple committed to satisfying the entire outstanding balance, including “statutory interest and other additions to tax accruing thereafter.” This agreement is currently awaiting approval from a federal judge.

Senator Justice’s office did not immediately respond to inquiries for comment early on Tuesday. Historically, the senator has often dismissed attempts to collect on his financial liabilities as politically motivated attacks.

Background of Financial Scrutiny

Monday’s federal lawsuit against Justice, a wealthy coalmining heir, and his wife follows a series of recent financial challenges. In October, the Internal Revenue Service (IRS) filed liens totaling more than $8 million against the Justices for unpaid personal taxes. Furthermore, West Virginia tax authorities placed a $1.4 million lien on the luxurious Greenbrier hotel resort. This iconic property, nestled in the Alleghany Mountains’ White Sulphur Springs community, is owned and operated by the Justice family.

The Justice family narrowly averted foreclosure on the historic Greenbrier earlier this year, reaching a crucial agreement with a credit collection company in August 2024. They acquired the 246-year-old resort, known for hosting U.S. presidents from Martin Van Buren to Donald Trump, out of bankruptcy in 2009 for $20.1 million.

A Politician with Deep Business Roots

Jim Justice, beyond his role as a U.S. Senator, is the proprietor of numerous other businesses. He was once widely recognized as West Virginia’s wealthiest resident, a status built on a diverse portfolio of enterprises. This recent settlement marks a significant development in the ongoing financial narrative surrounding one of the state’s most prominent political and business figures.

The agreement to resolve the substantial federal tax debt underscores the complexities of managing vast business interests alongside a high-profile political career, bringing a temporary close to a significant legal and financial challenge for the Justice family.

Source: The Guardian