IRS to Ban Hedge-Fund Tax Dodge on Carried Interest
- Treasury secretary says agency to issue guidance in two weeks
- Senator Ron Wyden calls new carried-interest limits a ‘farce’
Mnuchin Says Tax Law Guidance on Pass-Throughs 'Coming Soon'
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Treasury Secretary Steven Mnuchin said the Internal Revenue Service plans on closing a loophole that hedge-fund managers had been trying to exploit to avoid paying higher taxes on carried-interest profits.
Mnuchin told the Senate Finance Committee that a Bloomberg News story Wednesday, which detailed how hedge funds created scores of shell companies to work around the new carried-profit rules, prompted him to instruct administration officials to issue guidance on the subject within two weeks.