Limited Partners Win Self-Employment Tax Battle, War Continues, Bloomberg Law

Partner Jennifer Breen was quoted in a Bloomberg Law article discussing the Fifth Circuit’s ruling in Sirius Solutions LLLP v. Commissioner, which ruled that limited partners in limited liability partnerships should be exempt from paying self-employment taxes.

Despite the ruling providing near-term clarity for limited partners in hedge funds and private equity firms, pending cases in two other federal appeals courts could create a decision split that would require the US Supreme Court to ultimately decide the issue.

The Fifth Circuit ruling is “much anticipated and certainly impactful,” but it “does not end the debate,” Jennifer said.

Read the full Bloomberg Law article >>
Subscription may be required.