In the recent case of ES NPA Holding LLC v. Commissioner, the IRS argued that a profits interest can only be received tax-free by a service provider when the service is rendered directly to or for the benefit of the entity issuing the interest. The facts of the case are complicated, but in short, in the ES NPA case, the person that received the profits interest had rendered services to a corporation which was a member in the LLC (taxed
Continue Reading Did you know you can receive profits interest tax-free even when the services are not rendered directly to the partnership?
Did you know you can receive profits interest tax-free even when the services are not rendered directly to the partnership?
