Federal Government Says Mountain Shadows Couple Still Owe Over $1.2 Million In Back Taxes

  • Friday, January 13, 2023

The federal government says a Mountain Shadows couple still owes over $1.2 million in back taxes despite an earlier agreement that they would pay the amount.

Judge Travis McDonough ordered the case reopened against David and Katherine Rankine.

In a 2015 filing, the government said the Rankines owed "to the United States for federal income taxes, penalties, and interest for the 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, and 2012 tax years in the amount of $1,240,386, plus interest that has accrued and will continue to accrue."

It was agreed in August 2016 that the Rankines would pay the government $60,000 in calendar year 2016, and then $120,000 for each of the subsequent nine years ending Dec. 31, 2025.

The Rankines were required to pay at minimum of $5,000 per month.

On July 20, 2018, the Tax Division notified the Rankines through counsel that they were in arrears on the agreement by $55,000 for calendar year 2017 and that the Tax Division had not received any payments for 2018 as of the date of the letter.

The United States has not received a payment from the Rankines under the settlement agreement since 2017, it was stated.

The filing says David Rankine on two occasions filed for Chapter 11 bankruptcy, but both of those cases were dismissed.

The government said, "Because the Rankines have defaulted on the settlement agreement and continue to be indebted to the United States, this motion seeks to reopen the case to so that the Court can enter the consent judgment."

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