Releases

This week's release of Mitt Romney's tax returns has put an increased focus on both the arcane world of federal income taxes and the ongoing debate over classifying carried interest in partnerships. Dallas attorney Dan Baucum of Shackelford Melton & McKinley says he expects that the review of Romney's returns will add momentum to the growing demand for carried interest to be taxed as ordinary income rather than the current capital gains model. "If that change is made, it will be the biggest modification to partnership taxation in 50 years," says Baucum, a former Special Assistant to the IRS Associate Chief Counsel. "It would also catch many small businesses and family partnerships in its wake, adding to an already unfavorable regulatory climate." He also notes that Romney's "offshore" investments are part of a growing trend where investors seek investments that are globally diversified or not available in the U.S. because of regulatory restrictions. For more information, contact Rhonda Reddick at 800-559-4534 or rhonda@androvett.com.