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FTX agreed to pay the Internal Revenue Service (IRS) $885 million to settle a $24 billion tax claim the agency levied during bankruptcy proceedings. 
According to a <a href="https://www.bloomberglaw.com/public/desktop/document/FTXTradingLtdDocketNo122bk11068BankrDDelNov112022CourtDocket/38?doc_id=X7FV4C7KF1585R8232HO8DMKFM6" target="_blank" rel="">filing</a> with the Bankruptcy Court for the District of Delaware, FTX will pay the Internal Revenue Service (IRS) $200 million in priority claims. This amount is due within 60 days of an implemented court-approved creditor repayment plan.&nbsp; 
While <a href="https://crypto.news/?s=FTX" rel="">FTX</a> attorneys acknowledged the possibility of massive tax obligations, the estate challenged the IRS’s $24 billion case. The troubled crypto company also argued that a multi-billion tax payment could significantly affect individual creditor reimbursements.&nbsp; 
In addition to the $200 million priority payment, the IRS is owed $685 million, but the claim is classified as “lower priority.” The estate can pay this amount when funds are available after satisfying customer payments.&nbsp; 
 You might also like: <a href="https://crypto.news/blockfi-partners-with-coinbase-to-distribute-assets-recovered-from-ftx/" rel=""> BlockFi partners with Coinbase to distribute assets recovered from FTX </a> 
<h2 class="wp-block-heading" id="ftx-inches-toward-full-bankruptcy-payouts">FTX inches toward full bankruptcy payouts</h2> 
The IRS settlement marks another step toward full creditor payments following the firm’s bankruptcy filing in 2022. FTX sought Chapter 11 protection after the once-prominent crypto exchange collapsed under the leadership of <a href="https://crypto.news/what-awaits-ftx-after-sam-bankman-frieds-25-year-sentence/" rel="">convicted</a> founder Sam Bankman-Fried.&nbsp; 
Nearly two years later, after <a href="https://crypto.news/ftx-reaps-benefits-trendy-ai-anthropic-452-million/" target="_blank" rel="">Anthropic</a> share liquidations, discounted Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="">SOL</a>) auctions, and multiple crypto recovery missions, the firm <a href="http://FTX has billions more than needed to repay bankruptcy victims" target="_blank" rel="">announced</a> almost&nbsp;$16 billion for debtor distribution.&nbsp; 
Since the company owes creditors around $12 billion, it could repay most customers up to 118% of their holdings, a rare outcome for any bankruptcy case.&nbsp; 
Meanwhile, some speculate that the biggest winners are administrators and restructuring personnel under bankruptcy veteran and CEO John J. Ray. The embattled firm has approved $500 million in fees to law firms like Sullivan and Cromwell, Paul Hastings, and Quinn Emanuel. 
 Read more: <a href="https://crypto.news/ftx-has-billions-more-than-needed-to-repay-bankruptcy-victims/" rel=""> FTX has billions more than needed to repay bankruptcy victims </a>

FTX agrees settlement in $24b IRS tax case

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