FTX Challenges IRS's $24B Tax Demand, Asserts Zero Liability In Court Filing
Portfolio Pulse from Murtuza Merchant
FTX's attorneys have filed a challenge against the IRS's claim that the cryptocurrency exchange owes $24 billion in back taxes. The filing in the U.S. Bankruptcy Court for the District of Delaware asserts that FTX owes nothing, as it operated without distributing dividends or earnings and reported substantial losses over its three-year operation. The attorneys argue that the IRS's claims are unfounded and delay distributions to FTX fraud victims. They also state that the IRS has not justified its original demand of $43 billion nor the current $24 billion claim.
December 12, 2023 | 4:38 pm
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NEUTRAL IMPACT
FTX's legal challenge against the IRS's tax demand asserts the company's zero liability, which could influence the perception of FTX's token FTT's future value.
While FTT is not a stock but a cryptocurrency, the news about FTX's legal stance against the IRS could impact investor sentiment towards FTT. However, since FTX is already in bankruptcy proceedings, the short-term impact on FTT may be limited as the market has likely already priced in various negative outcomes. The relevance is moderate because the news directly involves FTX, but the importance is higher due to the large sum in question and the potential implications for FTX's creditors and the broader perception of the company's financial situation.
CONFIDENCE 60
IMPORTANCE 70
RELEVANCE 50