FTX: Hopes to pay over $200 million in taxes to the IRS instead of $24 billion

ChainCatcher news, according to legal documents from June 3, FTX plans to pay the IRS $200 million in priority tax claims and $685 million in subordinated tax claims. Priority tax claims (such as taxes owed) are payments that must be made before other debts, while subordinated claims are paid only after priority obligations are fulfilled.

FTX argues in bankruptcy court that the amount it owes is far less than the $24 billion claimed by the IRS. Previously, the IRS claimed that FTX owed $44 billion in taxes but later reduced the amount to $24 billion.

The FTX debtors, who are responsible for managing the company during bankruptcy, believe that the IRS incorrectly included funds misappropriated by Sam Bankman-Fried and other tax liabilities in its calculations. The IRS disagrees with the debtors' arguments and plans to seek substantial tax liabilities if a settlement cannot be reached. The objection deadline for the case is June 17, and the hearing date is June 25, 2024.