West Virginia Governor Jim Justice and his wife, Cathy, are facing a $5.1 million lawsuit from the U.S. government regarding unpaid federal income taxes, penalties, and interest that date back to the 2009 tax year. The lawsuit, filed by the Tax Division of the Department of Justice in U.S. District Court in Beckley, claims that despite repeated notifications for payment, the Justices have neglected or refused to settle their tax obligations.
As of August 4, the total owed to the Internal Revenue Service (IRS) reached $5,164,739.75. This legal action comes less than two months after the IRS reportedly filed liens for $8 million against Justice in Greenbrier County, tied to tax assessments dated November 25, 2015, which coincides with the date referenced in the current lawsuit.
Politico previously reported on the tax lien, noting that the IRS retains the right to collect tax liabilities for up to 10 years from the assessment date. Tuesday marks the end of that 10-year period, making the timing of the lawsuit all the more significant.
Jim Justice, who was elected to the Senate in November 2024, succeeded former Senator Joe Manchin after Manchin parted ways with the Democratic caucus earlier that year. The governor, who comes from a coal mining legacy, previously served as West Virginia’s governor from 2017 until his recent Senate appointment.
The timing of this tax-related lawsuit is particularly noteworthy, as it follows a recent ruling in Tennessee where a federal judge found Justice liable for over $29 million in damages and prejudgment interest to Lexon Insurance Company. This ruling stems from Justice’s breach of a surety-bond contract associated with his coal mining operations.
In a statement, CNBC reached out to Justice’s Senate office for comment on the lawsuit, but no response has been provided as of yet.
As the legal proceedings unfold, Jim Justice remains a key figure in West Virginia politics, and these developments will likely have implications not only for his financial standing but also for his legislative career. This situation highlights ongoing scrutiny surrounding the fiscal practices of politicians and raises questions about accountability and governance in state and federal offices.
As this story develops, observers will watch closely, given the legal and political ramifications involved.
Original Source: https://www.cnbc.com/2025/11/24/jim-justice-sued-taxes-west-virginia-coal.html
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Publish Date: 2025-11-25 09:14:00
