- FTX is contesting a substantial $24 billion tax bill imposed by the Internal Revenue Service’s (IRS) tax authorities.
- The proposed tax amount lacks substantiation and is not readily determinable, according to FTX.
- IRS’s proposed tax bill would significantly impede the chances of creditors obtaining any meaningful recovery.
The Internal Revenue Service (IRS) in the United States has put forth a tax bill of $24 billion against the bankrupt cryptocurrency exchange, FTX. FTX, in response, has contested the proposed amount, arguing that it is “enormous” and lacks substantiation. The exchange claims that the IRS’s assertions lack merit and a valid basis.
FTX, currently undergoing bankruptcy proceedings, contends that the proposed tax bill would significantly hinder the chances of most creditors, who are victims of fraud, of any meaningful recovery.
The proposed tax bill “would effectively prevent most of FTX’s creditors—themselves victims of fraud—from obtaining any meaningful recovery. It just makes no sense that a company that lost many billions of dollars would have a substantial tax liability, much less one for $24 billion,” FTX said in the court f…
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