Schulte Roth & Zabel partners David Griffel and David Wermuth with associate Sarah McNeill authored the Hedge Fund Law Report article, "IRS Wins Round One Over Meaning of 'Limited Partner' for Self-Employment Income Purposes." They explored the November 2023 court ruling in Soroban Capital Partners, LP v. Commissioner ("Soroban"), which portends to widen the applicability of self-employment taxation to state law limited partners of flow-through operating businesses, such as private fund managers.

In addition to reviewing the legislative history and relevant case law pertaining to "limited partner" status, they discuss how the Soroban ruling may affect how fund managers structured as limited partnerships will report their income for self-employment tax purposes for tax years 2023 and beyond.

Read the article here.

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