US Senator Settles Decade-Old Tax Debt
Republican US Senator Jim Justice and his wife Cathy have agreed to pay more than $5 million in back taxes shortly after being sued by the federal government over the 16-year-old debt. The lawsuit, filed in their home state of West Virginia, revealed the couple had received notice of the funds due since 2009 but failed to make full payment.
The Federal Lawsuit and Settlement
The legal action maintained that the Justices had "neglected or refused" to settle tax assessments first notified by the US treasury department over a decade ago. The suit demanded repayment of nearly $5.2 million plus any additional relief the court deemed appropriate.
In a separate filing on the same day, the US justice department confirmed reaching a settlement with the political couple. They agreed to satisfy the full amount plus statutory interest and other additions accruing thereafter, pending a judge's final approval.
Broader Financial Troubles
This lawsuit follows the Internal Revenue Service filing more than $8 million in liens against the Justices for unpaid personal taxes in October. Additionally, West Virginia tax collectors placed a $1.4 million lien on the luxurious Greenbrier hotel resort owned and operated by the Justice family.
The family narrowly avoided foreclosure on the 246-year-old property by reaching an agreement with a credit collection company in August 2024. They had purchased the historic resort, which has hosted US presidents from Martin van Buren to Donald Trump, out of bankruptcy in 2009 for $20.1 million.
Political Career Amid Financial Strain
Despite these substantial financial challenges, Jim Justice served as West Virginia's governor for eight years beginning in 2017 before winning election to the US Senate. He took over the seat vacated by retiring Democratic coal tycoon Joe Manchin.
Justice has previously dismissed collection efforts as politically motivated attacks, telling local media in October that his businesses were "complicated and complex" and that his children had been managing them effectively. According to Forbes, his projected net worth fell to "less than zero" in January due to collective debts exceeding $1 billion.
