Republican Senator Jim Justice of West Virginia and his wife, Cathy Justice, have agreed to repay more than $5 million in unpaid income taxes dating back to 2009. This agreement follows a lawsuit filed by the Internal Revenue Service (IRS) in the U.S. District Court for the Southern District of West Virginia, demanding $5,164,739.75 in taxes owed. The court filings revealed that this debt includes federal income taxes, penalties, interest, and statutory additions that have accumulated over the years.
The resolution was reached just hours after the Department of Justice’s (DOJ) Tax Division submitted the lawsuit. Although the agreement stipulates that the full amount must be repaid along with statutory interest, it does not specify a timeline for the payments. The motion is pending approval from a judge.
Senator Justice’s relationship with the Trump administration complicates the situation. Despite being sued by the DOJ, he is regarded as a strong ally of President Donald Trump, who won West Virginia by over 40 percentage points in the 2024 presidential election. Justice’s office did not respond to requests for comments regarding the lawsuit.
Justice, aged 74, has a background in the coal mining industry, having inherited a business from his father. He also acquired a historic mountain resort before entering politics. Initially elected as West Virginia’s governor in 2016 as a Democrat, he switched to the Republican Party the following year. After serving two terms, he won a seat in the U.S. Senate in a landslide victory, replacing longtime Democrat-turned-independent Joe Manchin.
The Justices have faced financial difficulties since at least 2016, as reported by the Washington Post. Unpaid bills, taxes, and fines to coal suppliers and regulators have accumulated, leading to estimates from Forbes indicating that the senator’s liabilities exceed his assets. In addition, the West Virginia Tax Division filed tax claims of over $1.3 million against the resort and sporting companies owned by Justice in August and September.
According to documents obtained by Politico, the IRS filed notices of tax lien against the Justices last month, claiming they owed over $8 million. In response to these claims, Justice dismissed the allegations as politically motivated, suggesting that they reflect scenarios commonly faced by large corporations.
“At the end of the day,” he stated, “I’d say just let it be and see how it all plays out.”
The outcome of this agreement and its implications for Justice’s political career remain to be seen as the legal proceedings continue.
