Print PDF Kenneth Werner comments appear in The Hedge Fund Law Report
The Hedge Fund Law ReportOctober 23, 2009
Richards Kibbe & Orbe Partner Kenneth E. Werner was quoted in an article titled "Implications of Recent IRS Memorandum on Loan Origination Activities for Offshore Hedge Funds that Invest in U.S. Debt" published in The Hedge Fund Law Report. The article details and analyzes the content of a memo issued by the Internal Revenue Service stating that interest income received by a foreign corporation with respect to loans that its agent originated to U.S. borrowers constitutes income connected with a U.S. trade or business and is subject to net income tax in the U.S. Mr. Werner suggests the memo could indicate increased attention to lending related activities of offshore funds by the IRS and describes several situations in which this is possible.