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 November 25, 2025

Senator Jim Justice settles over $5M in federal tax debt

West Virginia’s own Senator Jim Justice just inked a deal to pay back more than $5 million in federal taxes, proving even coal barons can’t dodge the IRS forever, the New  York Post reported

In a nutshell, the Republican senator and his wife, Cathy, reached an agreement with the Department of Justice to clear a hefty tax debt that’s been looming since 2009, with the final tally hitting $5,164,739.75 as of early August 2025.

Let’s rewind to the start of Justice’s journey, back when he inherited a coal mining and agriculture empire from his father, eventually becoming a billionaire in his own right.

From Coal King to Tax Troubles

In 2009, Justice sold Bluestone Coal Corporation for a cool $436 million in cash, plus some shares, to a Russian outfit called Mechel—a deal that seemed like a jackpot at the time.

But by 2015, he bought the company back for a mere $5 million, describing the state of the business post-Mechel as a "god-awful mess," a blunt assessment that hints at the headaches he inherited (Senator Jim Justice).

That quip about a "god-awful mess" might raise a chuckle, but it’s less funny when you see the trail of financial woes that followed, including lawsuits over unpaid mining fees and safety fines.

Legal Battles Pile Up for Justice

Since repurchasing Bluestone, Justice has been tangled in legal battles, including disputes over royalty payments owed to Caroleng Investments, a Mechel subsidiary.

In 2023, Caroleng forced the seizure and sale of a helicopter tied to one of Justice’s firms, a stark reminder that debt doesn’t play favorites, even with high-flying senators.

Last year, a Delaware federal judge upped the ante, ordering Justice to sell six family companies to cover a $10 million debt to the same subsidiary—talk about a rough patch for a man who once governed a state.

Tax Debt Finally Comes Due

Fast forward to his political career, where Justice served as West Virginia’s governor from 2017 before taking his Senate seat in January 2025, sworn in with Cathy by his side and President Pro Tempore Chuck Grassley presiding.

But the past caught up this week when the Justice Department filed a complaint in Beckley, West Virginia, federal court, alleging the couple owed millions in taxes, penalties, and interest despite repeated notices from the Treasury.

On the very same day, both sides filed a joint motion agreeing to settle the debt, a move that likely spared Justice further courtroom drama but still leaves a dent in his public image.

Babydog Steals the Spotlight

Now, let’s not pretend this tax saga doesn’t sting for a man of Justice’s stature, though one can’t help but wonder if his famous English bulldog, Babydog, offers some comic relief amid the mess.

Babydog has become a bit of a Washington, D.C., celebrity since Justice took office, and while pups don’t pay taxes, they sure know how to distract from a scandal or two.

Ultimately, this settlement might close one chapter of Justice’s financial burdens, but with ongoing lawsuits and past business dealings still haunting him, it’s clear the senator’s fight to balance his ledger—and his legacy—is far from over.

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