Senator Jim Justice (R-WV) has reached an agreement to pay over $5 million to settle a tax dispute with the U.S. Department of Justice (DOJ) and the Internal Revenue Service (IRS). The settlement addresses a tax debt that dates back to 2009 and was detailed in a federal complaint filed in Beckley, West Virginia, which claimed that Justice and his wife, Cathy Justice, owed $5,164,739.75 in federal income taxes, penalties, and interest as of August 4, 2023.
The DOJ’s complaint highlighted that the Justices had “neglected or refused to make full payment” despite being notified by the Treasury Department. In a joint motion filed on the same day, both the DOJ and the Justices confirmed their agreement to pay the outstanding amount.
Jim Justice, who previously served as the governor of West Virginia from 2017 until his election to the Senate in 2022, has a complex financial history tied to his coal mining and agriculture business. He inherited this business from his father and, at one point, was recognized as a billionaire.
In 2009, Justice sold Bluestone Coal Corporation for $436 million in cash, along with an undisclosed amount in shares, to the Russian company Mechel. Justice later expressed dissatisfaction with the deal, describing the company’s management as a “god-awful mess.” In 2015, he repurchased Bluestone from Mechel for just $5 million.
Since then, Justice has faced several lawsuits related to outstanding debts, including unpaid mining fees and fines for safety violations, as well as withheld royalty payments to a subsidiary of Mechel, known as Caroleng Investments. A federal judge in Delaware ruled last June that Justice needed to sell six of his family-owned companies to help address a $10 million debt to Caroleng Investments. This debt issue led to the seizure and sale of a helicopter belonging to another firm associated with the senator.
As Justice navigates these financial challenges, he continues to maintain a public profile, including his well-known pet English bulldog, Babydog, who has garnered attention in Washington, D.C. since Justice took office. The settlement of his tax obligations marks a significant step in addressing his ongoing financial issues, as he works to stabilize both his personal and professional affairs.
