Long Island’s Renaissance executives agree to pay $7bn to settle IRS tax dispute

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Long Island’s Renaissance executives agree to pay $7bn to settle IRS tax dispute

Executives of Renaissance Technologies LLC., one of the world’s most successful hedge funds headquartered in Long Island, California, could pay off as many as $7 billion to US tax regulators after reaching a settlement dealp with IRS over a dispute on whether the accused executives had allegedly downsized their tax liabilities from trading profits, a Renaissance Technologies LLC letter to investors seen by a press agency reporter alongside a source familiar with the subject-matter had unveiled later last week.

On top of that, the letter from Renaissance Chief Peter Brown to investors dated back to September 2, had unveiled that a co-founder of Renaissance Technologies LLC, a major Democrat donor, James Simons, would make an additional settlement payment of $670 million to IRS (Internal Revenue Service).

In tandem, while clarifying the details of the deal with IRS, one of the largest settlement accords ever reached with US tax regulators, Brown, the Chieftain of the world’s most successful quantitative hedge fund, wrote in the letter to investors that the fund had been working closely with the IRS for years to resolve the dispute before coming to terms, adding “It was better to agree to the resolution rather than risking a worse outcome, including harsher terms and penalties, that could result from litigation”.

Renaissance Technologies LLC executives to pay off $7bn to resolve tax dispute

Aside from that, latest Renaissance move to reach an accord with IRS followed an allegation raised by a former Michigan Senator Carl Levin back in the 2014s, who had detailed that the German lender Deutsche Bank AG alongside UK’s Barclays Plc had helped multiple hedge funds including Renaissance to entry some capital gains as long-term profits, eventually offloading a large chunk in taxations from their coffers, however, Brown fended off the allegation in a letter to the investors saying that the disputed trades were executed by its Medallion fund between 2005 and 2015 which is entirely maintained for friends and families.

However, Levin passed away last month at the age of 87. Meanwhile, citing Renaissance executives’ potential tax frauds which were first uncovered by the former Democrat US Senator, a longtime aide of Levin, Elise Bean said followed by the statement, “I wish Senator Levin were here, seven years after he first exposed its outrageous tax scam, to see RenTec finally held accountable.

It's good to see that, despite a years-long knock-down bare-knuckles battle, the IRS prevailed in compelling at least one set of billionaires to pay the taxes they owe.