Loophole Closed ~ Hedge-Fund Managers Prepare Huge Tax Checks:

The Wall Street Journal | By: By Gregory Zuckerman and Rob Copeland | Updated July 20, 2017:

Steven Cohen, David Einhorn and others are facing looming tax bills for years of offshore gains.

Hedge-fund managers for years accumulated offshore gains without paying federal and state taxes. Now Uncle Sam is going to get paid.

Steven Cohen is one of many managers preparing to write huge checks in early 2018 due to a crisis-era decision to close a tax loophole that long benefited some of Wall Street’s wealthiest investors.

The billionaire founder of SAC Capital Advisors LP amassed deferred offshore income of more than $1 billion likely subject to the taxation, said people familiar with the matter. Other hedge-fund managers facing personal tax bills of over $100 million include David Einhorn of Greenlight Capital Inc. and Daniel Loeb of Third Point LLC, said people familiar with the matter.

Total payments from all managers could amount to $25 billion, according to a 2008 estimate from the Joint Committee on Taxation. Some tax specialists say the bill could be even higher: $100 billion or more.

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