Sen. Lorin N. Pace, R-Salt Lake, owes the federal government $104,623.26 in unpaid taxes, penalties and interest dating back to 1980, claims a U.S. District Court suit filed Thursday by the U.S. attorney's office.
The suit also accuses Pace of making a fraudulent conveyance to his wife.Other defendants include businesses and persons that may claim an interest in Pace's Olympus Drive property, including his wife, Marilynn, Zions First National Bank, Alco Investments, PTA Trust, Stanley N. Pace of Cupertino, Calif., and Fireman's Fund Mortgage Co.
Pace was away on vacation and could not be reached for comment Thursday.
The suit claims assessments were made against Pace in 1984, 1985 and 1986. According to the suit, the unpaid balance of these assessments were, for the following tax years: 1980, $5,605.27; 1981, $17,517.26; 1983, $21,130.05; 1984, $13,642.50; and 1985, $4,464.10.
With the accrued penalties and interest, the amount tops $104,000.
Stanley Pace may claim an interest in the property "as provider of funds in behalf of Lorin N. Pace to Alco Investments in the approximate amount of $50,000," the suit says. That amount was apparently advanced so that Alco could purchase a judgment lien held against Lorin Pace by Zions National Bank.
After listing the unpaid assessments, the suit goes on to say, Lorin Pace "neglected or refused" to pay them.
In 1975, he executed a quit claim deed to his wife for his half-interest in the property. The suit says this conveyance was fraudulent because the property was transferred without consideration when Pace believed or intended that he would incur debts beyond his ability to pay as they matured.
The suit adds that all or nearly all of his property rights were passed in this way to a close relation and that he continues to control the property by paying most or all of the maintenance and upkeep.
The federal government asked the court to order a judgment against Pace for the total amount and asked that either the conveyance be set aside as fraudulent or that the court find that Pace owns an interest in the property.
It asks that tax liens against the property be foreclosed and the property be sold, with proceeds distributed to settle tax debts and to any other parties who may have an interest.
The suit was filed by Carolyn D. Jones and Henry Condell of the Justice Department's Tax Division in Washington, D.C., through the local offices of Utah U.S. Attorney Brent D. Ward.