Tax Blog

Change is inevitable, particularly in the tax arena.  The world evolves at such a quick pace that the IRS frequently finds itself playing catch up.  Examples of this abound, but a recent event of interest involves the IRS’s attempt to deprive certain taxpayers of losses because of their decision to conduct business through limited liability companies (“LLCs”).

Congress, focused on combating “tax shelters” in the 1980’s, passed Section 469(h)(2).  This provision creates a legal presumption that a taxpayer who owns an interest in a limited partnership, as a limited ...