Tag Archives: private equity

The IRS’s Private Equity Regulations Might Backfire

by Andy Grewal — Friday, May 20, 2016

In a post last week , my co-blogger Daniel Hemel explained how Section 707(a)(2)(A) may allow the IRS to deny the tax benefits associated with so-called carried interests, even in the absence of legislative action. That statute essentially grants the IRS the regulatory authority to alter the tax treatment of transactions between partners and partnerships, […]

The IRS’s Attack on Private Equity Firms May Be Doomed

by Andy Grewal — Monday, Dec. 7, 2015

In a prior post, I described some issues related to regulatory severability, that is, a court’s decision to strike or not strike an entire regulation project when it finds that only a portion of it violates the law. In this post, I want to explain how principles of regulatory severability could doom some regulations recently proposed […]

The IRS vs. Private Equity (Part 2)

by Andy Grewal — Tuesday, July 28, 2015

In my previous post, I briefly discussed how the IRS has short-circuited the APA’s notice and comment rulemaking procedures to combat tax motivated transactions by private equity firms. I’d like to further flesh out that point here. Given the general readership of this blog, I’ll start by considering a hypothetical environmental statute and then turn […]

The IRS Beats Private Equity Firms At Their Own Game

by Andy Grewal — Thursday, July 23, 2015

Earlier this week, the IRS issued regulations related to private equity “fee waiver” transactions, which are designed to convert high-taxed ordinary income into low-taxed capital gain. At first, I was pleasantly surprised by the IRS’s method of rulemaking here. Usually, when it issues regulations, the IRS announces that the APA does not apply, and it […]