Skip to Content
Insights Self Employment Tax

IRS Refuses Investment Fund Management Partnership the Same Self Employment Tax Break It Gives S Corporations

September 11, 2014 Self Employment Tax

In a recent ruling, the IRS confronted a partnership serving as a management company for investment partnerships and funds. Management fees were its sole source of income. The management company paid reasonable compensation subject to employment or self-employment taxes to its owner-managers. Following a planning technique available to S corporations,…