Involuntary bankruptcy petition filed in Nevada against developer Tim Blixseth

VEGAS INC coverage

Tax authorities from three states filed an involuntary bankruptcy petition in Nevada on Tuesday against developer Tim Blixseth, best known for the turmoil surrounding Montana’s ultra-exclusive Yellowstone Club resort.

The petition, filed in U.S. Bankruptcy Court in Las Vegas, seeks to force Blixseth into Chapter 7 liquidation so the states can recover some $2.3 million in taxes.

It was filed by attorneys for three petitioning creditors: The Montana Department of Revenue, claiming to be owed some $219,000; the Idaho Tax Commission, claiming to be owed $1.1 million; and the California Franchise Tax Board, claiming to be owed nearly $987,000.

A message for comment was left with an attorney for Blixseth.

The petition listed Blixseth’s home address in Medina, Wash., near Seattle. But it says his county of residence or principal place of business is Las Vegas, in Clark County.

Blixseth isn’t well known in the Las Vegas business community, and it’s unclear what his business in Las Vegas is.

Blixseth, however, is listed as an officer for a few Nevada-incorporated companies. It wasn’t immediately clear if those companies are simply incorporated in Nevada or actually have a physical presence in Nevada.

Attorneys for the tax authorities couldn’t immediately be reached for comment on the filing.

Blixseth at one point was estimated by Forbes magazine to be worth some $1.3 billion.

But after the acrimonious Yellowstone Club bankruptcy, he doesn’t appear on the current Forbes list of America’s richest people.

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