Fund Managers' Taxes May Rise

Congressional aides say the Senate Finance Committee is studying a technique that allows fund managers to qualify most or all of their income for the 15 percent capital-gains rate by structuring their management fee as a share of profits rather than a percentage of assets, Bloomberg News reported.

The review is part of a broader inquiry by the Senate panel, which made its first major foray into overhauling the tax treatment of hedge funds and private-equity firms last week by introducing legislation that would more than double taxes for Blackstone Group LP and Fortress Investment Group LLC by 2012, Bloomberg News reported.
-New York State Society of Certified Public Accountants