IRS Attempting to Seize Devil His Due, Purses

A federal judge will hear arguments today in a case involving the Internal Revenue Service and its efforts to collect back taxes from the father of the owner of Devil His Due by seizing the horse and its winnings.

U.S. government lawyers filed papers Tuesday showing their opposition to a show-cause order issued last Friday by U.S. Judge Con Cholakis of Albany at the request of the horse’s owner.

The IRS had until Wednesday to show that it properly issued its notice of seizure for Devil His Due, the horse’s foal certificate--necessary for racing--and his winnings. The sides are scheduled to present their cases today in federal court in Syracuse.

The IRS said Ralph (Bob) LiButti owes $4.39 million in back taxes from 1989-90. Last week, the IRS issued a notice of seizure against Devil His Due’s stable, Lioncrest in Mahwah, N.J., which is owned by LiButti’s daughter, Edith.

Although Edith LiButti owns Devil His Due, the IRS contends that her father is profiting from his association with his daughter.

An IRS agent placed a lien on the horse at its stable in Saratoga Springs last month, two days before Devil His Due was to run in the Whitney. Devil His Due finished second in that race behind Colonial Affair and earned $77,000 for his owner, Edith LiButti.

The IRS seized the purse money and laid claim to the horse. LiButti wants the money returned and says the government has no right to seize her property.