IRS Demanding $24,000,000,000 From FTX Would Take Money Away Collapse Victims, Lawyers Say: Report

FTX’s lawyers are pushing back against the U.S. Internal Revenue Service’s (IRS) efforts to claim billions of dollars in unpaid taxes from the bankrupt crypto exchange, according to a Bloomberg report.

Per the report, the FTX lawyers have said in a court filing that the IRS’s demand for $24 billion in unpaid taxes would come at the expense of the victims of fraud at the bankrupt crypto exchange unless the court shoots down the tax collection agency’s bid.

Citing a court filing, Bloomberg says that FTX’s lawyers have argued that the bankrupt crypto exchange owes no taxes to the IRS as it repeatedly recorded losses over its three-year lifespan. The lawyers also argue that any funds that FTX would be forced to pay to the IRS would harm the victims of the bankrupt crypto exchange.

According to Bloomberg, the IRS and FTX will this week fight it out in court to determine how much of the former’s claim is legitimate. While FTX is reportedly aiming for a quick schedule to estimate the IRS’s claim, the tax collection agency says its audit of the bankrupt crypto exchange is ongoing and that it is therefore inappropriate to ask the court to estimate FTX’s tax liabilities.

Bloomberg further says that the US government has revealed in a court filing that it will reclassify a part of the $24 billion claim, a move that is likely to reduce the final figure.

Generated Image: DALLE3