Limited Partners of Investment Managers may be Subject to Self-Employment Taxes

Blog Post Limited Partners of Investment Managers may be Subject to Self-Employment Taxes

Limited Partners of Investment Managers may be Subject to Self-Employment Taxes

November 2014

The Internal Revenue Service recently placed its crosshairs on limited partners of investment management companies by ruling that an LLC’s limited partners may be subject to self-employment (SE) tax. In early September, the IRS released guidance that discussed whether distributions to an investment management company LLC’s limited partners are exempt from SE tax when the partners provide services to the LLC.

Download the PDF