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The IRS has filed a lawsuit against the Federal Deposit Insurance Corporation (FDIC) to determine the amount the FDIC must pay to cover a $1.45bn tax debt owed by the failed Silicon Valley Bank (SVB). The FDIC, which seized SVB and its assets in March 2023, has denied the tax claim. The IRS is requesting the court to overrule the FDIC’s decision and make a new determination on the validity and amount of taxes owed. SVB became one of the largest bank failures in U.S. history when it collapsed in March 2023. SVB Financial, SVB’s former parent company, has also sued the FDIC over the seizure of $1.93bn in cash during the bank’s takeover. The FDIC argues that SVB Financial’s cash can be seized to cover the cost of bailing out the failed bank