We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Tax Court Agrees Profits Interest Safe Harbor Should Apply to Tiered Partnership Structure.
- Authors
Lowther, Todd; Crouch, Larry; Bray, Ryan; Moldowan, Gillian Emmett; Aghai, Ira; Garg, Jai
- Abstract
This article discusses a recent memorandum opinion by the Tax Court in ES NPA Holding LLC v. Commissioner, which clarifies the application of the profits interest safe harbor to tiered partnership structures. The court ruled that the taxpayer's receipt of a profits interest in a lower-tier partnership qualified as a non-taxable event under the safe harbor provided in Revenue Procedure 93-27. The court's decision provides guidance on the use of such structures and settles certain previously unsettled tax issues. However, it should be noted that the court's analysis was limited to the facts and arguments specific to this case and may not apply to all tiered partnership structures. The decision is expected to be cited by practitioners to support the application of the profits interest safe harbor in similar situations involving tiered partnership structures.
- Subjects
SAFE harbor; TAX courts; SETTLEMENT of structures; LEGAL judgments; JUDICIAL opinions
- Publication
Journal of Taxation of Investments, 2023, Vol 40, Issue 4, p89
- ISSN
0747-9115
- Publication type
Article