Copyright: Mark Van Scyoc
The Internal Revenue Service (IRS) announced on March 1 that taxpayers cannot use S corporations to get around the three-year holding period for carried interest enacted as part of last year’s tax reform bill. The Tax Cuts and Jobs Act exempted partnership interests held within a corporation from the three-year holding period but did not specifically define corporation. The IRS has announced it will soon issue regulations clarifying that the exemption is applicable only to partnership interests held by C corporations and not S corporations.
