IRS Claims FTX Owes Up to $24B in Unpaid Taxes, More Than Estate's Assets

The Internal Revenue Service claims FTX owes as much as $24 billion in unpaid taxes, more than three times the amount the estate currently has to try and make creditors whole.

FTX never distributed dividends or earnings and "never earned anything anywhere near amounts that could support the IRS claims for $24 billion in taxes," the FTX lawyers wrote. On the contrary, FTX lost a vast amount of money, they added.

"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," the lawyers argued.

The IRS initially claimed an even larger amount of unpaid taxes - around $44 billion - in April of this year. It amended this amount down to $24 billion in November. The IRS says the $24 billion owed relates to income taxes, employment taxes and penalties owed by FTX and its affiliated entities from 2018 to 2022. However, it’s still not a final figure as the IRS continues its audit.