The USFIA Receivership and IRS have reached a settlement regarding tax claims held by the IRS.

Pending court approval, this paves the way for USFIA victim distribution payments to go out.

As per a stipulation filing on June 1st, the Receiver advises;

The United States, on behalf of the IRS, the SEC and the Receiver have met and conferred with regard to the Motion and resolved their issues by this Stipulation, whereby the United States agrees that the
claims of investors with Allowed Claims and the Administrative Expenses of the Receiver and the receivership shall have priority over the present and future claims of the IRS.

The settlement renders the Receiver’s previously submitted Distribution Plan moot. In the original plan the Receivership intended to
set aside $15 million
to settle potential IRS claims.

That money is now freed up and will be put towards the distribution process.

Once the stipulation is approved, the Receivership will move towards sending approved distribution payments out. There is no timeline for this.

At time of publication the court has yet to approve the Receiver’s stipulation. I’ll continue to monitor the docket for updates.

Update 22nd June 2022 – 
The Receiver has
secured approval
to send out USFIA victim distribution payments.

🤖 Quick Answer

What settlement has the USFIA Receivership reached with the IRS?
The USFIA Receivership and IRS have agreed that investor claims with Allowed Claims status and administrative expenses of the Receiver shall have priority over current and future IRS tax claims, pending court approval. This settlement enables victim distribution payments to proceed and renders the original distribution plan obsolete.

How does this settlement affect victim payments?
The settlement paves the way for USFIA victim distribution payments to be released following court approval. Previously, the Receivership had planned to set aside $15 million for IRS settlement, but this agreement eliminates that requirement, potentially increasing available funds for victims.

What was the role of the SEC in these negotiations?
The United States, representing the IRS, SEC, and the Receiver, met and conferred to resolve disputes regarding tax claims and receivership priorities. The SEC participated in negotiations ensuring that investor

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