Insights

The SEC has continued and expanded its focus on violations of Rule 21F-17 of the Securities Exchange Act of 1934 (i.e., the whistleblower protection rule). The SEC began actively enforcing the whistleblower protection rule many years ago, although enforcement actions in late 2023 reflected an intensified focus on whistleblower protections in separation agreements and other…

Client Alerts | June 25, 2024 | Hedge Funds | Investment Management | Private Equity Funds

The U.S. Corporate Transparency Act (“CTA”) requires certain privately owned entities to report information about the people who control them (their “beneficial owners”) to the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (“FinCEN”). The CTA rules generally apply to privately owned limited liability companies (LLCs), limited partnerships (LPs), corporations and other…

Client Alerts | June 12, 2024 | Estate Planning and Administration | Business Advice and Planning | Acquisitions and Sales | Securities and Corporate Finance

This alert is a reminder of the approaching deadlines and action items regarding the New York State Pass-Through Entity Tax (the “NYS PTET”) and the New York City Pass-Through Entity Tax (the “NYC PTET”). Deadline: March 15, 2024 The deadline to elect into the NYS PTET and the NYC PTET for 2024 is March 15,…

Client Alerts | March 6, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds

Each year, we send a newsletter to our clients and friends regarding Section 475(f) mark-to-market elections. A 475(f) election must be made by partnerships before March 15th of the year in which the election is to be effective and can be overlooked while people are focused on preparing prior year tax returns and K-1 estimates.…

Client Alerts | February 28, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds

In November 2023, New York Governor Kathy Hochul signed SB 3539 into law, amending certain parts of Section 756 of the New York General Business Law, commonly known as the Prompt Payment Act (the “Act”). Among other provisions, the Act now significantly restricts the amounts owners can hold back from payments to contractors for services…

Client Alerts | February 12, 2024 | Development

A recent decision by the Third Circuit Court of Appeals has reversed a Delaware bankruptcy court decision and directed the appointment of an examiner over the objection of the debtors and the official committee of unsecured creditors. The decision, In re FTX Trading Ltd., will provide a public accounting of the implosion of FTX, gives…

Client Alerts | January 29, 2024 | Creditors’ Rights and Bankruptcy Litigation | Digital Assets and Cryptocurrency

Background on the Limited Partner Exception  Section 1401 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), imposes self-employment tax on an individual’s self-employment income. Self-employment income is generally defined as the net earnings from self-employment, which is “the gross income derived by an individual from any trade or business carried on by…

Client Alerts | January 10, 2024 | Hedge Funds | High Net Worth Individual Planning | Private Equity Funds