US seeks about US$1.4 billion from collapsed SVB for taxes

THE United States Internal Revenue Service (IRS) is in search of to get well about US$1.4 billion in taxes it claims are owed by Silicon Valley Bank (SVB), the regional lender that failed final yr.

The federal tax company claims the California-based lender owes each company revenue and employment taxes spanning a four-year interval ending in 2023, in response to a lawsuit filed on Tuesday (Feb 13) in Washington federal courtroom. The grievance was introduced in opposition to the Federal Deposit Insurance Corporation, which is the receiver of the collapsed financial institution.

The grievance comes on the heels of the same one from New York City, which is attempting to gather greater than US$2.1 million in again taxes it claims SVB owes. The financial institution’s collapse nearly a yr in the past represented the most important US financial institution failure in additional than a decade and marked the beginning of a disaster within the sector. In January, the father or mother firm of SVB entered a cope with main collectors because the chapter case moved in direction of a decision.

The IRS famous in its courtroom submitting that the quantity sought represents an estimate “because pending examinations of the tax returns were underway”. The company decided that a few of the employment taxes had been paid, in response to the submitting, which didn’t specify how a lot. BLOOMBERG

Source: www.businesstimes.com.sg”