Business

IRS eyed PE taxes

US tax authorities took no formal action after launching a probe five years ago of tax strategies used by private-equity managers at firms such as Bain Capital, leaving a legal gray area now being examined by New York’s attorney general.

In a move focusing more scrutiny on private equity at a politically turbulent time, New York Attorney General Eric Schneiderman has subpoenaed documents from at least a dozen firms about how they reduce their managers’ tax bills, a source familiar with the matter told Reuters.

Among firms subpoenaed, in addition to Bain, were KKR & Co., TPG Capital, Apollo Global Management and Silver Lake Partners, a source told Reuters.

A spokesman for the US Internal Revenue Service said yesterday the agency had no immediate comment on the issue.