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Tax Court

Offit Kurman

So, The IRS Has Selected Your Return for Audit

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The Internal Revenue Service (“IRS”) audits 1% to 2% of small business income tax returns annually for one of two reasons: (1) something about the return (or information reported on the return) flagged the return for a closer...more

Blank Rome LLP

The BR State + Local Tax Spotlight: January 2026

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Welcome to the January 2026 edition of The BR State + Local Tax Spotlight. We know the importance of remaining up-to-date on State + Local Tax developments, which appear often and across numerous jurisdictions. ...more

Blank Rome LLP

Words Matter: Use Tax Exemption Wins in Washington State!

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“[E]ase of administration cannot justify reading limitations into a statute that the legislature did not adopt.” So stated the Court of Appeals of the State of Washington when it ruled that a manufacturer was entitled to a...more

Rivkin Radler LLP

Applying the Federal Priority Statute to The Attorney as Client’s “Corporate Executive”

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Over their career, every tax practitioner has had many client-taxpayers against whom a government’s taxing authority – be it federal, state, or local – has asserted and then assessed a tax deficiency. There are many...more

Greenbaum, Rowe, Smith & Davis LLP

What Commercial Property Owners & Taxpayers Should Know About Filing a New Jersey Property Tax Appeal in 2026

New Jersey taxpayers continue to face one of the highest real estate tax burdens in the nation. The state’s high tax rates, coupled with fears of an economic downturn, increased tenant vacancies and high interest rates, can...more

Keating Muething & Klekamp PLL

A Tax Win for Limited Partners

A recent federal court decision furnishes limited partners with a significant tax victory. The Fifth Circuit Court of Appeals recently decided that limited partners are eligible for the self-employment tax exclusion under...more

Winstead PC

Fifth Circuit Rejects Tax Court’s Definition of “Limited Partner” for Self-Employment Tax Purposes

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The U.S. Court of Appeals for the Fifth Circuit ruled that the meaning of “limited partner” under Section 1402(a)(13) of the Internal Revenue Code of 1986, as amended (the “Code”), is determined under state law. ...more

Seward & Kissel LLP

Sirius-ly? Another Self-Employment Tax Ruling!

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In the latest self-employment tax ruling, the Fifth Circuit Court of Appeals issued a ruling in Sirius Solutions, L.L.L.P. v. Commissioner (the “Ruling”) that will ultimately permit state-law limited partners to exclude their...more

Eversheds Sutherland (US) LLP

Tax Bytes: Week of January 26, 2026

Welcome to this week’s edition of Tax Bytes. Our team of tax lawyers is actively monitoring for federal and international tax developments and issues of note. Each week we pull together the items we deem most important to...more

Cole Schotz

Sirius Victory for Limited Partners

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On January 16, 2026, in Sirius Solutions v. Commissioner, the U.S. Court of Appeals for the Fifth Circuit held that limited partners in a partnership may qualify for an exemption from self-employment tax on their distributive...more

Proskauer - Tax Talks

Fifth Circuit in Sirius Solutions Reverses Tax Court and Exempts Limited Partners from Self-Employment Tax

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On January 16, 2026, in Sirius Solutions, L.L.L.P. v. Commissioner, No. 24-60240 (5th Cir. Jan. 16, 2026), the U.S. Court of Appeals for the Fifth Circuit reversed the Tax Court and held that, for self-employment tax...more

Stinson LLP

Update on Limited Partner Exception to Self-Employment Tax Liability: Fifth Circuit Decision Revives the Issue

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In the summer of 2025, we issued an alert on this subject, U.S. Tax Court Issues Ruling on Self-Employment Tax Exception for Limited Partners (06.11.2025). The case discussed in that alert was the third of a series of...more

Nossaman LLP

New Court Decision Can Ease Self-Employment Taxes on Partnership and LLC Owners

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This January, the Fifth Circuit Court of Appeals in Sirius Solutions L.L.L.P. v. Commissioner reversed a pro-IRS decision by the United States Tax Court and eased the burden of self-employment tax for passive owners in...more

FBT Gibbons LLP

Avoiding IRS Accuracy Penalties for a Substantial Underpayment of Tax

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There are over 150 types of penalties in the Internal Revenue Code (IRC). One frequent penalty that the Internal Revenue Service (IRS) asserts is the accuracy penalty under IRC Section 6662....more

Adler Pollock & Sheehan P.C.

A Sirius Exception for Limited Partner Taxation

On January 16, 2026, the United States Court of Appeals for the Fifth Circuit issued a ruling defining the term “limited partner” as used in the Internal Revenue Code of 1986, as amended (the “Code”). The Court held that a...more

Skadden, Arps, Slate, Meagher & Flom LLP

Fifth Circuit Rejects IRS’ ‘Passive Investor’ Test for Limited Partner Exception in Self-Employment Tax

On January 16, 2026, the U.S. Court of Appeals for the Fifth Circuit decisively rejected the IRS’ attempt to narrow the definition of “limited partner” for purposes of the self-employment tax exclusion under section...more

Akin Gump Strauss Hauer & Feld LLP

Fifth Circuit Overrules Tax Court, Providing Major Victory for Limited Partners on Self-Employment Tax

In a significant decision for the investment funds industry, the U.S. Court of Appeals for the Fifth Circuit has officially rejected the Internal Revenue Service (IRS)’s “passive investor” test for the limited partner...more

Baker Donelson

SALT Select Developments - January 2026

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State and local taxes impact almost every taxpayer, and developments in any one jurisdiction can be frequent and sometimes confusing. In this newsletter edition, we briefly summarize selected state and local tax (SALT)...more

Morrison & Foerster LLP

Fifth Circuit Rejects “Passive Investor” Test for the SECA Limited Partner Exception in Sirius Solutions

On January 16, 2026, the U.S. Court of Appeals for the Fifth Circuit issued a closely watched decision in Sirius Solutions, L.L.L.P. v. Commissioner (“Sirius”), vacating and remanding the Tax Court’s holding that certain...more

Eversheds Sutherland (US) LLP

House Tax Bill Signals Improved Taxpayer Protections Against Penalties

The House of Representatives recently passed H.R. 5346, the “Fair and Accountable IRS Reviews Act,” with strong bipartisan support. The legislation seeks to address long-standing challenges in tax administration. If enacted...more

Troutman Pepper Locke

Fifth Circuit Overturns Tax Court, Ruling in Favor of the Taxpayer in Case Evaluating Standard for Limited Partner Exception to...

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The U.S. Court of Appeals for the Fifth Circuit issued a split (2-1) decision in favor of the taxpayer in Sirius Solutions, L.L.L.P. v. Commissioner on January 16, 2026, holding that the “limited partner exception” to...more

Haynes Boone

Fifth Circuit Rejects “Passive Investor” Test for Limited Partner Exception from Self-Employment Tax

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On January 16, 2026, the U.S. Court of Appeals for the Fifth Circuit rejected the “Passive Investor” test used by the Tax Court in Soroban Capital Partners LP v. Commissioner (“Soroban”) and determined that limited partners...more

Morgan Lewis

Fifth Circuit Rejects ‘Passive Investor’ Test for Limited Partner Exception to Self-Employment Tax

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On January 16, 2026, the US Court of Appeals for the Fifth Circuit became the first federal appellate court to interpret the “limited partner” exception from self-employment tax under Section 1402(a)(13) of the Internal...more

Eversheds Sutherland (US) LLP

House tax bill signals improved Tax Court efficiency

On December 1, 2025, the House of Representatives passed H.R. 5349, the “Tax Court Improvement Act,” with bipartisan support. The bill seeks to modernize several historically challenging aspects of tax administration. As...more

Rivkin Radler LLP

“Limited Partner”? The Exclusion of Net Earnings from Self-Employment

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Last week, the federal Court of Appeals for the Fifth Circuit ruled that the U.S. Tax Court had misinterpreted the Code’s self-employment tax rules as they apply to individuals who hold limited partnership interests in a...more

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