Story perspectives
IRS Revises Tax Rules for Private Equity Limited Partners
6/5/2025
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Story summary
- The IRS claims limited partners in private equity and hedge funds could owe SECA tax, revising earlier exclusions.
- Recent court cases, like Soroban Capital Partners LP v. Commissioner, question the limited partner exclusion for state-law limited partners.
- Ongoing appeals and pending litigation indicate the matter is still unresolved, with potential Supreme Court review expected.
