Steve Cohen is contesting an Internal Revenue Service campaign to compel hundreds of money managers — including his Point72 Asset Management — to pay self-employment taxes on a main source of earnings.
Point72 petitioned the US Tax Court on Aug. 11 to challenge a tax assessment on $344 million of earnings from 2015 and 2016. The asset manager allocates virtually all of its earnings and expenses to Point72 Capital Holdings, a limited partnership owned by Cohen, according to the petition.
The billionaire New York Mets owner would owe less than $10 million if the IRS prevails, according to people familiar with the situation who asked not to be identified discussing confidential matters. But allowing the IRS’s current interpretation of a 69-year-old tax law to become precedent could become increasingly costly now that Point72 is managing outside capital; it was only investing on behalf of Cohen and other members of his firm in 2015 and 2016.
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