Goldman Sachs Mitsui Marine Derivative Products--a partnership Goldman set up to trade derivatives as part of deals with various municipal entities--has been hit with a tax lien worth $1.5 million by the IRS, Reuters reports. The lien stems from unpaid taxes that accrued in 2009.

The IRS made the assessment last September and filed the lien this month, according to filings.

Goldman and Mitsui Marine & Fire Insurance of Japan are said to be equal partners in the venture, which has been somewhat star-crossed. "Municipalities have alleged that numerous financial services firms, including Goldman Sachs Mitsui, conspired to fix prices and bids on a wide-range of derivatives products, including so-called interest rate swaps," notes Reuters.

It's not clear whether the two actions are related. At first glance, it's hard for a tax layman to see the connection. The partnership has certainly been caught up in a wave of lawsuits and ill will generated by various investment banks that sold hedging deals to entities that didn't quite understand what they were getting into. In one case, New Jersey ended up paying $1 million a month on auction rate securities, even after the securities had been redeemed. The litigation will stretch out over many years.

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