FTX Faces $24 Billion Tax Bill from IRS
The insolvent crypto exchange FTX has received a massive blow as the IRS issues a tax bill of $24 billion. This comes at a time when FTX is already dealing with bankruptcy and working hard to recover its assets to repay customers. The IRS filed initial claims totaling $44 billion, later reducing it to $24 billion, but FTX argues that these claims are baseless and unsubstantiated.
FTX Challenges IRS Tax Liability Claims
FTX is now preparing for a legal battle with the IRS and has filed a motion to dismiss all tax claims. The exchange argues that the tax bill is not based in reality, as the IRS has failed to provide any rational explanation for its claims. FTX debtors claim that this massive tax bill will hinder their efforts to reimburse customers.
FTX Debtors Claim Compliance To IRS Information Requests
In its motion to dismiss the tax claims, FTX debtors revealed that they have been cooperating with the IRS by providing information on over 1,100 requests. Despite this cooperation, little progress has been made in understanding the basis for the IRS’s claims. The filing also revealed that there are currently 47 pending claims against FTX debtors related to unfiled returns.
Hot Take: FTX Faces Major Setback with $24 Billion Tax Bill
The IRS’s $24 billion tax bill is another blow for FTX as it continues to grapple with bankruptcy and legal challenges. FTX is determined to fight these tax liability claims, arguing that they lack substance and hinder their ability to repay customers. The outcome of this legal battle will have significant implications for both FTX and the broader crypto industry.
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