Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

IRS Wants More Feedback on Non-Economic Interest in an LLC

May 13, 2022, 9:42 PM

The IRS wants more input on non-economic interest in an LLC, an IRS attorney said Friday.

The agency published Notice 2021-56 in November 2021, seeking feedback on LLC tax exemption. Comments showed the LLC tax exemption laws vary from state to state and can conflict with the federal tax exemption requirements.

  • Christopher Hyde, an attorney at the IRS, said he would like to get more details about the possibility of having an LLC with members who don’t have economic interest, similar to a nonprofit corporation. He spoke at a conference hosted by the American Bar ...