Foley & Lardner LLP Partner Jason Kohout is quoted in the Bloomberg article, “Renaissance Ends No-Fee Investment Perk After IRS Complaints,” about how Renaissance Technologies has ended its no-fee Medallion investment fund for employees after the IRS argued that such fee waivers should be considered taxable compensation.
Kohout said that while it is murky territory, “It is kind of common to say ‘we are not going to take compensation to avoid any self-dealing issues.’”
“IRS guidance in this area is pretty limited, especially when it comes to the ways investment managers are paid,” he added.
The article also ran in Accounting Today and Financial Advisor.
