Feds Drop Oklahoma Claim in Chiropractor Tax Case

The U.S. Justice Department dropped one count against Oklahoma in a suit seeking to collect $900,000 in federal tax assessments from chiropractor Richard Leavitt.

Updated on Nov. 2, 2026 in Taxes

Feds Drop Oklahoma Claim in Chiropractor Tax Case

The federal government agreed to drop one count against Oklahoma in its lawsuit over $900,000 in federal income and excise tax assessments against chiropractor Richard Leavitt. The suit also seeks to enforce liens against Leavitt's real property.

Why it matters

The dismissal narrows the case for Oklahoma, which had potential interest in Leavitt's real property, while the federal effort to collect the assessments continues. It shows how federal tax collection can reach property across multiple state-level claims.

The Justice Department filed a stipulation of dismissal on October 30 dropping its claim against the Oklahoma Department of Transportation, and the lawsuit against Leavitt over $900,000 in federal assessments remains pending. The case also seeks to enforce liens against Leavitt's real property.

The players

Richard Leavitt

Richard Leavitt is a chiropractor and founder of a chiropractic and sports injury clinic who owes $900,000 in federal income and excise tax assessments at the center of the lawsuit.

U.S. Department of Justice

The U.S. Department of Justice is the federal agency that filed the lawsuit to collect Leavitt's tax assessments and enforce liens on his property.

Oklahoma Department of Transportation

The Oklahoma Department of Transportation is the state agency that had a potential interest in Leavitt's real property, and its claim was dismissed from the federal case.

The details

The 2024 complaint alleged Leavitt engaged in a prohibited transaction involving an employee stock ownership plan at his chiropractic and sports injury clinic. The government is seeking to reduce the assessments to judgment and enforce liens against his real property.

2024: Complaint filed alleging Leavitt's prohibited transaction involving an employee stock ownership plan.
Oct. 30, 2026: Justice Department filed stipulation dropping its claim against the Oklahoma Department of Transportation.

Legal Context

Federal tax lien enforcement against real property is a standard tool the Justice Department uses to collect delinquent assessments. This case follows that pattern by pursuing liens on Leavitt's property while narrowing claims against state agencies.

Taxpayers facing federal assessments may see liens placed on real property when debts remain unpaid. Property owners with delinquent federal taxes should understand that the government can pursue enforcement against their real estate.

The takeaway

Unpaid federal tax assessments can lead to liens on real property, so taxpayers who receive notices should address them promptly to avoid enforcement actions.