Can’t we all just get along? Not if you are a federal employee. The Internal Revenue Service (IRS) most recently filed suit against the Federal Deposit Insurance Corporation (FDIC) over a $1.45 billion tax bill resulting from the government bailout. silicon valley bank.
In other words, the U.S. government filed a lawsuit against the U.S. government. May the best bureaucracy win.
Back in 2023, Silicon Valley Bank collapsed overnight. Because it threatens to destroy the entire global financial system, US government intervenes To save the day. The FDIC took over the banks and promised to make their customers whole. Since then, the FDIC has been collecting assets to pay off Silicon Valley banks’ deposits. This includes $1.93 billion in cash, but these assets are subject to large taxes that the FDIC believes it does not need to pay. Meanwhile, the IRS really wants that money, according to reports. Reuters.
In fact, the IRS wants it so much that it’s filing lawsuits across the federal government. Silicon Valley banks were exposed to an estimated $1.45 billion in penalties from 2020 to 2023, according to top U.S. tax officials. The FDIC has denied the IRS’s tax claim, and the matter is now up to the courts.
The IRS and FDIC did not respond to requests for comment.
The IRS has acknowledged that the bill may be lower than the high $1.45 it originally requested. At the time of filing the initial claim, the IRS was in the process of compiling the bank’s claims and discovered that Silicon Valley Bank had already paid a portion of the employment taxes that were included in the original estimate. . Still, whatever the exact tax burden is, it’s probably greater than the zero offered by the FDIC.
