Jefferies Sues Bankrupt George Weiss, IRS Over Tax Claim Priority

Jefferies Strategic Investments LLC sued to lower the repayment priority of $176 million in tax claims against hedge fund manager George Weiss in bankruptcy.

Paying the IRS in full for taxes on income from nearly two decades ago is likely to leave Weiss unable to develop a feasible bankruptcy exit plan, Jefferies said in a Thursday complaint in the US Bankruptcy Court for the Southern District of Florida.

Jefferies, which holds a $113 million judgment against Weiss that’s largely unsecured, noted that he’s retired, has no stream of income, and lacks the ability to pay the IRS claims.

Bankruptcy law requires priority tax claims to be paid in full before unsecured creditors receive distributions.

Bank of America is the other substantial creditor in Weiss’ bankruptcy, asserting a $135 million claim that is primarily secured by the hedge fund manager’s art collection, Jefferies said.

Allowing the IRS to remain a priority creditor will result in fewer funds, if any, available to pay Jefferies and other unsecured creditors, the filing said.

The IRS tax claims stem from an April 2025 federal tax court ruling and Weiss’ efforts to evade more than $500 million in partnership income with his company GWA LLC from 2003-2008.

Weiss sued Jefferies last year to void about $95.7 million of the judgment, for which he’s said to be personally liable. Jefferies’ motion to dismiss the suit was denied in December.

The case will proceed to trial, but dates haven’t been set yet.

Meland Budwick PA and Herbert Smith Freehills Kramer US LLP represent Jefferies. Venable LLP and Olshan Frome Wolosky LLP represent Weiss.

The case is George Allen Weiss, Bankr. S.D. Fla., No. 25-bk-16349, complaint 1/15/26.