Senator's $5M Tax Payout Exposes 16-Year Financial Freefall

U.S. Sen. Jim Justice (R-W.Va.) has agreed to pay nearly $5.2 million in overdue federal income taxes, resolving a 16-year-old debt dispute with the IRS and marking the latest chapter in a protracted financial saga for the former billionaire, sources confirm. The settlement, reached after the Justice Department filed a lawsuit seeking the amount, includes a judgment of $5.16 million plus statutory interest and penalties according to litigation reports. The agreement was submitted to the U.S. District Court for the Southern District of West Virginia on Monday.

The lawsuit, filed by the IRS, alleged that Justice and his wife, Cathy, had "neglected or refused to make full payment" of tax liabilities dating to 2009 despite repeated demands for payment according to reports. The couple entered a joint motion for consent judgment, agreeing to the terms of the settlement. The payment follows a string of financial challenges for Justice, a coal mining heir and owner of the Greenbrier Resort in West Virginia, who Forbes estimated in 2025 as having a net worth "less than zero" due to liabilities exceeding assets.

Justice's financial troubles have long drawn public scrutiny. In 2021, the IRS filed liens totaling $1.18 million against the Greenbrier Hotel and its medical clinic over unpaid taxes, though those debts were later settled. Earlier this year, state tax officials imposed $1.4 million in liens on the resort for unpaid sales taxes. The Justice family also narrowly avoided a 2024 foreclosure on the Greenbrier after reaching a deal with a credit collection company. A union official at the resort previously reported the family was $2.4 million behind on employee health insurance payments.

The senator, who took office in January after defeating Democratic challenger Glenn Elliott to replace retiring Sen. Joe Manchin, has faced criticism for his financial management. During a 2024 press briefing, Justice dismissed collection efforts as "politically motivated" and described his businesses as "complicated and complex," with his children "doing a magnificent job" running them according to reports.

The IRS has also pursued other debts against Justice. In October 2025, the agency filed liens totaling $8 million for unpaid personal taxes. Meanwhile, the Justice family has faced separate legal battles, including a paused foreclosure auction on resort property near Beckley, W.Va., and ongoing disputes over real estate taxes and environmental violations at coal mines.

The settlement does not resolve all outstanding issues. The Greenbrier remains under threat from unpaid obligations, and Justice's businesses have faced repeated scrutiny for debt management. The senator's office did not immediately respond to requests for comment.

The case underscores the financial fragility of a once-wealthy political figure now navigating a landscape of litigation and public accountability. With the tax agreement finalized, the Justice family's ability to stabilize its assets will depend on resolving remaining legal and financial hurdles.