Federal court in Kansas City orders man to pay more than $2 million for federal income taxes

By Charmaine Little | Feb 8, 2019

KANSAS CITY – A final judgment of $2.3 million was entered in federal income tax liability against Missouri property owner William Phillip Jackson in the U.S. District Court for the Western District of Missouri in the Southwestern Division on Jan. 30.

U.S. District Judge Brian C. Wimes also ordered Jackson to pay interest that has accrued since Aug. 1, 2018.

The amount stems from the court and jury findings concerning Jackson’s taxable income for 1998 through 2002. The court already held a jury trial on July 23, 2018, as the federal government, represented by Russell J. Edelstein and Casey S. Smith, took legal action against Jackson. Jackson was represented by William J. Fleischaker.

Along with the final judgment, the court also determined federal tax liens for Jackson and his wife’s four properties could face foreclosure and sale. Any profit from the sale will go to the IRS Property Appraisal and Liquidation Specialists (PALS) for administrative costs related to the sales. After that, proceeds will go to Newton County to pay for unpaid property taxes. 

Any further payments will be rendered with half going to Jackson’s wife and the other half going to the judgment against Jackson.

Prior to the trial, the court granted partial summary judgment for the U.S., ruling that Jackson’s taxable income is $946,984 and he’s responsible for penalties from 1998 to 2002. It also ruled that he and his wife are the legal owners of four properties that are subject to federal tax liens. 

Once at trial, the court also granted judgment in favor of the U.S. concerning Jackson’s charitable contributions for a total of $477,500. The court ultimately determined Jackson failed to establish that he did not get any of the income from Jackson Brothers Tire for 2000 through 2002.

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