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Carried Interest Rules Return to White House for Review (1)

June 3, 2020, 12:28 PMUpdated: June 3, 2020, 1:41 PM

The White House review office is once again studying an IRS proposal that could halt a potential workaround of the 2017 tax law’s restriction on a preferential tax treatment for fund managers.

The Office of Information and Regulatory Affairs received the proposed rules, under tax code Section 1061, on Tuesday after completing an earlier review on Feb. 27.

  • Prior to the 2017 law, private equity and hedge fund managers could pay tax on a chunk of their income that stems from investment profits—known as carried interest—at a rate of 23.8% instead of at the top 37% rate,

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