Why Business Owners and Investors Should Be Paying Attention

A legal case currently moving through the courts—Sirius Solutions LLLP v. Commissioner has the potential to reshape how the IRS and courts define “limited partner” for purposes of the self-employment tax exclusion under Internal Revenue Code Section 1402(a)(13).

If your business operates through a partnership or LLC, or you are involved in investment management, consulting, or professional services, this case may affect how your income is taxed.

If you are a business owner or investor operating through a partnership or LLC, you may be at risk of unexpected self-employment taxes even if your role is labeled as a "limited partner."

A recent Tax Court decision in Denham Capital Management, LP v. Commissioner, T.C. Memo. 2024‑114, underscores this risk. The Court ruled that certain partners could not use the limited partner exclusion under tax law because they were actively involved in the business.

The Tax Cuts and Jobs Act (TCJA) of 2017 brought sweeping tax changes—but many of them are temporary. If Congress does not act to extend key provisions, most individual tax cuts will expire on December 31, 2025, and revert to 2017 law starting in 2026.

Here’s what’s changing—and who’s most at risk of paying more.

The IRS 2025 Dirty Dozen: Top Tax Scams to Avoid

Each year, the IRS releases its "Dirty Dozen" list, highlighting the most prevalent tax scams and schemes that pose risks to taxpayers. The 2025 list emphasizes the importance of vigilance, especially during tax season.