New Leadership Scours Bankrupt Exchange’s Databases
After the departure of SBF, the new leadership at FTX diligently searched through the bankrupt exchange’s databases to locate misplaced and poorly labeled assets. Their efforts have resulted in the mapping out of approximately $7 billion in assets, with nearly half of that amount being in cryptocurrencies.
The IRS Investigates Unpaid Taxes
However, it’s not just the new team at FTX that is scrutinizing the mismanaged finances. The IRS has also been investigating the matter. The tax audit is still ongoing, and the final amount owed may change. Initially, the IRS claimed that FTX owed a staggering $44 billion, but this figure was later revised to $24 billion across all entities within the FTX empire.
The majority of the unpaid taxes are related to unpaid partnership taxes, amounting to $20.4 billion, while payroll and other income tax obligations make up the rest.
FTX Pushes Back Against IRS Claim
In an attempt to dismiss the claim, FTX argued that the tax bill is an unrealistic amount that surpasses its earnings. The IRS also dismissed tax returns filed by Ernst & Young on behalf of the FTX Group. However, this dismissal attempt was rejected by the court.
FTX has now filed a second document stating that not only are the figures incorrect but accepting them would prevent creditors from receiving any repayment. They argue that the IRS must provide specific evidence to support their claims.
Court Battle Between IRS and FTX
The court battle between FTX and the IRS is scheduled for December 12th. Instead of seeking a complete dismissal, FTX hopes for a more accurate and well-documented figure from the U.S. tax regulator. They argue that the current amount demanded by the IRS is significantly higher than the income earned by the bankrupt crypto platform.
Hot Take: FTX and IRS Face Off in Court Over Tax Dispute
FTX and the IRS are set to face each other in court today regarding the tax dispute. The new leadership at FTX has successfully identified billions of dollars in assets, but the IRS claims that a significant portion remains unpaid in taxes. FTX initially attempted to have the claim dismissed, but their request was denied. Now, they are seeking a more accurate figure from the IRS. The outcome of this court battle will determine the financial obligations of FTX and potentially impact its creditors.
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