According to the June 3 legal filing, FTX plans to pay the IRS $200 million in senior taxes and $685 million in subordinate tax claims. A senior tax claim, such as taxes, is a payment that must be made before other debts, while a subordinate claim is paid only after the senior obligation is fulfilled. FTX argued in bankruptcy court that it owed far less than the $24 billion claimed by the Internal Revenue Service, which claimed it owed $44 billion but later reduced the amount to $24 billion. FTX debtors, who were in charge of managing the company during its bankruptcy, argue that the IRS erroneously included funds embezzled by Sam Bankman-Fried and other tax liabilities in its calculations. The IRS disagrees with the debtors' arguments and plans to seek substantial tax liabilities in the event that a settlement cannot be reached. The deadline for objections in this case is June 17, with a hearing date of June 25, 2024.