Foley & Lardner LLP partner Raj Tanden is quoted in Politico article, “Wall Street’s tax reckoning,” offering insight on a recent decision by the Tax Court that ruled ‘active’ limited partners are subject to self-employment tax.
Tanden said it remains unknown how many firms could face a tax bill but noted that “any trade or business operated as a limited partnership with ‘active’ limited partners are implicated.”
Politico referenced Tanden’s recent alert on the subject, “Tax Court Rules that ‘Active’ Limited Partners are Subject to Self-Employment Tax,” where he wrote that the safest course for some fund managers may be to pay taxes on whatever distributive share of income they generate from the partnership.
