Ellin & Tucker Offices

Article of Interest- I.R.S. Targets Tax Dodge by Private Equity Firms

Recommended By: David Schriver

The IRS is taking aim at investment funds who convert management fees to capital and, as such, re-characterize the income to capital gains (vs. ordinary income).  They refer to this as a “disguised payment for services” and suggest it is being abused and will be disallowed if no “entrepreneurial risk” was involved.  The term “entrepreneurial risk” was not defined.

Click the link to read I.R.S. Targets Tax Dodge by Private Equity Firms.


David SchriverWith nearly 20 years of financial reporting and consulting experience, David D. Schriver, Jr., CPA, is a Director in the Audit, Accounting, and Consulting Department of the firm and is a member of the firm’s Investment Company Services Group. In this position, David is responsible for overseeing audits, reviews, and compilations of financial statements, as well as offering management advisory services, for private business owners. David’s exceptional grasp of the accounting and finance market factors that affect business owners allow him to consult on a variety of critical topics including profitability strategies, bank negotiation assistance, traditional accounting services and more.

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