Client Alert: IRS Clarifies Position Regarding Employee-Partner Status

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May 5, 2016
The IRS has long held the position that an individual partner in a partnership may not also be an employee of such partnership for tax purposes. The IRS’s position had previously been unclear as to whether an individual partner in a partnership could also be an employee of a disregarded entity owned by such partnership.  The IRS has now issued temporary regulations to address this situation.