Soroban Capital Partners LP v. Commissioner of Internal Revenue

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Case overview

Case Number:

25-2250

Court:

Appellate - 2nd Circuit

Nature of Suit:

 

  1. October 02, 2026

    2nd Circ. Forges Own Path In Limited Partner Tax Ruling

    The Second Circuit's decision limiting a self-employment tax break for limited partners with significant managerial roles reached a conclusion similar to that of a recent Fifth Circuit ruling, but practitioners said notable differences between them create a split requiring resolution by the IRS, the U.S. Supreme Court or Congress.

  2. September 17, 2026

    Firm Partners Can't Get Employment Tax Break, 2nd Circ. Says

    The Second Circuit held Thursday that $141.5 million in partnership income distributed to an investment company's principals was subject to self-employment taxes, following the Fifth Circuit's narrow interpretation for determining eligibility for a self-employment tax exemption for limited partners.

  3. August 19, 2026

    IRS Urges 2nd Circ. To Adopt Narrow Limited Partner Ruling

    The IRS urged the Second Circuit to adopt the Fifth Circuit's narrow interpretation for determining whether a limited partner qualifies for a self-employment tax exemption, arguing that an investment firm's principals in a similar dispute would not qualify under the new standard.