Judge Houser: Sam Wyly Owes $1.1 Billion to IRS

A federal bankruptcy judge on Monday ordered Dallas entrepreneur and philanthropist Sam Wyly to pay the Internal Revenue Service $1.1 billion, which is less than half what the federal government originally demanded but it still one of the largest tax judgments ever against a single individual.

U.S. Bankruptcy Chief Judge Barbara Houser ruled that Wyly, the 81-year-old former owner of Bonanza Steakhouses and Michael’s Stores, to pay $135.5 million in unpaid taxes dating back more than two decades. The judge said Wyly also must pay the IRS $402 million in interest and $570 million in penalties.