{"id":36518,"date":"2013-07-02T10:53:29","date_gmt":"2013-07-02T14:53:29","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=36518"},"modified":"2013-07-02T11:09:01","modified_gmt":"2013-07-02T15:09:01","slug":"irs-goes-after-hedge-funds-aggressive-tax-dodge-technique","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/07\/2013\/irs-goes-after-hedge-funds-aggressive-tax-dodge-technique.html","title":{"rendered":"IRS Goes After Hedge Fund’s “Aggressive” Tax Dodge Technique"},"content":{"rendered":"

\"irs_logo\"<\/a>New York (HedgeCo.Net) – Super-successful hedge fund Renaissance Technologies Medallion is under scrutiny by the IRS for an\u00a0unusual tax strategy invented by former Cold War code breaker, and hedge fund founder\u00a0James H. Simons.<\/p>\n

The hedge fund has an amazing 80%\u00a0average profit per year over the last 25 years, and the IRS is looking for its cut.<\/p>\n

Gawker says: “Renaissance, in essence, filtered its investments through a bank in order to claim that they were making long-term capital gains, when in fact they were making short-term trading profits. Then they paid the lower tax rate. The IRS calls this an “end run” around tax law.”<\/p>\n

Bloomberg reports: “The case highlights how hedge-fund and private-equity managers use loopholes to exploit the government\u2019s preferential treatment for long-term investing income. If East Setauket, New York-based Renaissance prevails in its legal dispute with the IRS, dozens of other funds would probably take steps to mimic the firm\u2019s strategy.”<\/p>\n

The IRS itself has declined to comment on the case yet, citing confidentiality laws.<\/p>\n

Alex Akesson
\nEditor for\u00a0HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a>\u00a0is a premier\u00a0hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0Hedge Funds<\/a>!<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Super-successful hedge fund Renaissance Technologies Medallion is under scrutiny by the IRS for an\u00a0unusual tax strategy invented by former Cold War code breaker, and hedge fund founder\u00a0James H. Simons. The hedge fund has an amazing 80%\u00a0average […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-36518","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=36518"}],"version-history":[{"count":8,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36518\/revisions"}],"predecessor-version":[{"id":36525,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/36518\/revisions\/36525"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=36518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=36518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=36518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}