Samuel J. Preston
Subscribe to Samuel J. Preston's PostsSamuel J. Preston focuses his practice on US and international tax matters. Read Samuel Preston's full bio.
Tax Court Rules Limited Partners May Be Subject to Self-Employment Tax
By Kevin Spencer and Samuel J. Preston on Dec 1, 2023
Posted In Court Procedure Matters, Trial Courts
On November 28, 2023, the US Tax Court granted partial summary judgment in favor of the Internal Revenue Service (IRS) in Soroban Capital Partners LP v. Commissioner and held that “limited partners” are defined functionally—not by state law—for purposes of Internal Revenue Code (IRC) Section 1402(a)(13), which excludes distributions to a “limited partner, as such”...
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Federal District Court Rules Codified Economic Substance Doctrine Vitiates Tax Transaction Benefits
By Timothy S. Shuman, Kevin Spencer and Samuel J. Preston on Nov 3, 2023
Posted In Court Procedure Matters, Trial Courts
On October 31, 2023, the US District Court for the District of Colorado, in Liberty Global, Inc. v. United States, applied the codified economic substance doctrine and held—on summary judgment—that Liberty Global, Inc. (LGI) must recognize $2.4 billion in taxable gain. At issue was a four-step transaction that took place in 2018, as a result...
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