Breaking News: The IRS Court has won the Paves Way for the higher taxes on the Hedge Fund managers. The ruling might close off the technique popular in the fund managers which has led them to exclude millions of dollars in income from the self-employment taxes. IRS has given a challenge to the investment funds that are over the qualifies for the expectation which has limited partners get from the federal self-employment taxes. The Internal Reserve Service has recently scored a win over the hedge fund and asset management industries. This is one of the biggest news in the market as per the market experts. Read this article till the end and do not miss any line.
The Internal Revenue Service (IRS) has now scored the win over the hedge fund and the asset management industries this week. It has happened in the case that is going to bring higher taxes for a lot of fund managers. According to the officials, the U.S. Tax Court ruling is requiring the managers to pay self-employment taxes which are over 3% of their income. There is an opinion that is currently surviving the additional legal battles and is applying it broadly. It is going to close the famous technique from the self-employment taxes and also on the related levies which others should pay. Continue reading.
It has been stated that even after a lot of fun managers are considering the limited partners under the state last, still it does not matter where it is automatically meaning that they are qualified for the expectation which has limited partners who get from federal self-employment taxes, which is officially ruled by Judge Ronald Buch. It has been claimed by the official that the ruling was a loss for the Soroban Capital Partners which is a around $10 billion New York-based hedge fund firm.
According to the source, the government had made some similar arguments in some other cases including the high-profile Point72 Asset Management which is run by the New York Mets owner Steve Cohen. The spokespersons of Point72, Soroban, and the IRS have officially declined to comment on the cases. The tax law professor at the University of Florida, Karen Burke has said that this is what the government is currently trying to argue. He has also said that there is a big potential but also it is going to be more litigation.