KPMG report: U.S. Tax Court decision upholding IRS determination that fund engaged in U.S. trade or business
Initial observations and analysis of the decision
Initial observations and analysis of the U.S. Tax Court decision
The U.S. Tax Court in YA Global Investments, LP v. Commissioner, 161 T.C. No. 11 (November 15, 2023), upheld the IRS’s determination that a fund was engaged in a U.S. trade or business and sustained additions to tax. Read TaxNewsFlash
While the facts of the case are unusual, this is the first case to consider the application of the U.S. trade or business standard to a partnership fund arrangement in the modern era of asset management, and as such this case has been followed closely by the asset management industry.
Read a November 2023 report [PDF 258 KB] prepared by KPMG LLP tax professionals that provides initial observations and analysis of the decision.
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