The Soapbox

PBCHoo

Joined: 08/15/2017 Posts: 634
Likes: 919


The IRS has always had the ability to tax carried interest as compensation.


IRC section 707(a) gives the IRS the authority to recharacterize a transaction between a partnership and a partner as one between a partnership and an outside service provider. Political pressure has simply prevented it from doing so.

A statutory fix is one of Biden's Green Book proposals.


(In response to this post by TomGlansAski)

Posted: 06/14/2021 at 11:19AM



+3

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