Tobacco Company Owners Evade Tax Lien Case IRS Filed Too Late

Two North Carolina residents defeated the IRS’s attempt to recoup $24 million in taxes after a federal judge determined that the agency filed its complaint beyond the 10-year statute of limitations and failed to justify the delay.

Judge Terrence W. Boyle of the US District Court for the Eastern District of North Carolina dismissed the case against Calvin Phelps and Lisa Yamaoka Wednesday, throwing out their alleged 2012 tax liability and ordering the IRS to cease efforts to resolve their debts by seizing their real estate.

Phelps and Yamaoka were involved in several defunct tobacco companies that declared bankruptcy in ...