FTX: Plans to pay more than $200 million in taxes to the IRS, not $24 billion

According to legal documents on June 3, FTX plans to pay $200 million in priority tax claims and $685 million in secondary tax claims to the US Internal Revenue Service. Priority tax claims (such as taxes) are payments that must be made before other debts, while secondary claims are only paid after fulfilling priority obligations.

FTX argued 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 lowered the amount to $24 billion.

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