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Second Circuit Upholds IRS Ruling in Bessent Tax Dispute

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Story summary
  • Treasury Secretary Scott Bessent settled a dispute over a hedge-fund tax strategy that avoided Medicare tax.
  • Senate Democrats said Bessent avoided $910,000 in taxes over three years using the scheme.
  • Bessent disputed the $910,000 figure but created a reserve fund to potentially cover the taxes.
  • The Second Circuit Court of Appeals upheld the Tax Court’s decision favoring the IRS.