I am a non-U.S. person who received a distribution in 2025. Why did I not
receive a tax form?
FTX Recovery Trust availed itself of exceptions to filing U.S. tax forms where available under the Internal Revenue Code and applicable regulations.
I am a U.S. person who received a distribution in 2025. Why do I not have a tax form posted to Step 7 of the FTX Claims Portal?
If you did not consent to electronic delivery of certain tax documents, you will receive any applicable tax documents via mail using the address provided on your tax form.
Are there any circumstances in which I might be required to pay tax on Interest that I have not yet received?
Yes, if you are a U.S. taxpayer and hold a Claim after December 31, 2025 that has been “Allowed” by the Debtors or the Wind Down Entity but that has not yet been fully Distributed, you will likely be subject to the accrual of interest income (under relevant original issue discount rules) for periods after the Effective Date at a rate of 9% per annum even if such interest has not yet been paid to you. The amount of such accrual will be reported as taxable interest income earned by you in the year of accrual, and you will receive a Form 1099-OID in the first quarter of the following year. No further tax will be due in respect of such accrued interest income when it is ultimately Distributed. See Question 5 below for additional information on situations where U.S. persons may have received Form 1099-OID.
I am a U.S. person who sold my non-convenience class (5A or 5B) claim. Why am I receiving a Form 1099-OID reporting accrued interest?
U.S. persons who held allowed claims during the year ended December 31, 2025 may be allocated their pro-rata share of accrued interest income for the portion of the year in which they held the claim. The amount of such accrual will be reported as taxable interest income earned by you in the year of accrual, and you will receive a Form 1099-OID in the first quarter of the following year.
The Form 1099-B does not have any tax basis information. How do I compute any gain or loss?
The gain or loss should equal the difference between your adjusted tax basis in the Claims and the fair market value of your claims on the Effective Date. The Debtors expect that in most cases, the value of your Claims on the Effective Date should approximately equal the amount of U.S. Customer Entitlement Claims as
set forth in the applicable Ballot (unless you and the Debtors have agreed in writing to a different amount). If you do not believe that such scheduled amount accurately reflects the amount of your Claims, you should consult a U.S. tax advisor concerning the potential U.S. tax consequences of the relevant facts as you understand them. If you anticipate receiving additional amounts from a Supplemental Remission Fund, you should consult a U.S. tax advisor regarding the U.S. tax consequences of such potential receipt. The Debtors are not presently in a position to speculate on the U.S. tax consequences that might arise from the potential receipt of amounts from a Supplemental Remission Fund.
I am a claims buyer who purchased both FTX U.S. and FTX DM claims. Will I receive tax forms from both processes?
No. Claims buyers who held both FTX U.S. and FTX DM claims will receive tax forms from the FTX Recovery Trust via the same process through which the Claims buyer submitted its Form W-9 or applicable W-8). The tax forms will reflect reportable amounts from both their FTX U.S. and FTX DM claims.
If I do not consent to the electronic delivery of certain tax documents but then change my mind, is it possible to receive them electronically?
If you initially do not consent to the electronic delivery of certain tax documents when you complete step 7 of the FTX Claims Portal, you will not be able to receive 2025 tax documents electronically. However, if you hold a claim that has not been fully satisfied, you can re-submit your withholding forms in the FTX Claims Portal, and during this process, you will have the option to choose whether or not to consent to electronic delivery. Your choice at that time will determine whether you receive 2026 and other future tax documents electronically.