There is a recent development surrounding FTX’s bankruptcy case, contributing to a rift between the crypto exchange’s legal team and the Internal Revenue Service (IRS). The tax office has <a href="https://www.bloomberg.com/news/articles/2023-12-11/irs-tax-demands-would-take-money-from-victims-of-ftx-bankruptcy">asked</a> the defunct cryptocurrency exchange to pay an outrageous sum of $24 billion in unpaid taxes. This was after it claimed that FTX owed a total of $44 billion but recently decided to reduce the amount to $24 billion. 
<h2 id="b-from-44b-to-24b-irs-claims-b">From $44B to $24B, IRS Claims</h2> 
According to the IRS, it first amended the bill to $43 billion in September before finally dropping it to $24 billion in November. The requested sum includes income taxes, employment taxes, and penalties that FTX and its affiliates owe from 2018 to 2022. Since this is 2023, likely, this is not the final fee. 
The tax agency claims that its calculations are correct and therefore, leaves it to FTX to prove them otherwise. This new development is bound to make FTX’s ongoing bankruptcy proceedings <a href="https://thecoinrise.com/ftx-bankruptcy-to-be-very-expensive-auditor-warns/">more complex than it already is</a>. 
<h2 id="b-lawyers-claim-ftx-does-not-owe-24b-to-irs-b">Lawyers Claim FTX Does Not Owe $24B to IRS</h2> 
FTX’s lawyers are asking the IRS to explain how it came about the $24 billion and to this effect, they have submitted a new filing to a Delaware bankruptcy court. The argument about how much the bankrupt crypto firm and its associates owe the government in unpaid taxes has been going on for about a month. FTX has said that it owes the federal tax office nothing at all.&nbsp; 
It is quite interesting how the IRS is asking for tax payment that is more than three times the amount the FTX estate currently has to try and <a href="https://thecoinrise.com/ftx-creditors-could-collect-up-to-40-of-their-investments/">make creditors whole</a>.&nbsp; 
<h2 id="b-irs-wants-to-take-victims-recoveries-b">IRS Wants to Take Victims’ Recoveries</h2> 
FTX lawyers have explained that in the course of the company’s three years of operations, it “never earned anything anywhere near amounts that could support the IRS claims for $24 billion in taxes,”&nbsp;nor did it distribute dividends or earnings. 
“The only source of recovery for the IRS is by taking recoveries away from victims. As there is no basis to assert any tax claim against the Debtors, the IRS’s reliance on its own processes only serves to delay distributions to those truly injured,”&nbsp;the lawyers wrote in the filing. 
The post <a href="https://thecoinrise.com/ftx-lawyers-in-rift-with-irs-over-unsubstantiated-24b-tax-bill/">FTX Lawyers in Rift With IRS Over Unsubstantiated $24B Tax Bill</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

FTX Lawyers in Rift With IRS Over Unsubstantiated $24B Tax Bill

Table of Contents

TheCoinrise Media

Other articles published on Dec 12, 2023

DOGE Army Mungkin Jenuh Menanti Cuitan Elon, Investor Lirik Retik Finance (RETIK)

Litecoin’s post-halving triumph: Active addresses soar to record heights

Montenegro Prolongs Detention of Terraform Labs Co-Founder Do Kwon

US Commerce Secretary Reviews NVIDIA’s AI Chip Sales to China

Best Meme Coins | Choosing the Best Meme Coins for Your Portfolio in a Booming Crypto Market (202...

Bitcoin Falling to $40,000 May Not Be a Bad Thing: Expert Opinion!

Join our free newsletter for daily crypto updates!