Private Equity Strategy Win
On Monday, a federal judge in Houston dismissed a Federal Trade Commission suit against a private equity firm over its roll up strategy. The FTC’s lawsuit alleged a NY based private equity firm, Welsh, Carson, Anderson and Stowe, had created a scheme dating back to 2012 to consolidate anesthesia practices and drive up prices. While the Welsh Carson was dismissed from the case, the FTC suit against its portfolio company remains ongoing. Nevertheless, the dismissal of the case against the Welsh Carson is being viewed as a huge win for private equity because the court ruled that merely receiving profits from a portfolio company that may have engaged in anticompetitive behavior was not itself a violation of antitrust laws. This favorable ruling for private equity extends beyond the context of the healthcare industry.
Federal Government Announces IRS Audit Surge
Earlier this month, the Internal Revenue Service announced plans to dramatically increase IRS audits of companies and wealthy individuals. The IRS announced plans to nearly triple the audit rate on corporations with assets over $250 million to 22.6% in tax year 2026, up from 8.8% in 2019. The IRS also plans a 50% increase in audit rates for individuals with annual income over $10 million, to 16.5% in tax year 2026, up from 11% in 2019.
Taxpayers need to be prepared for greater IRS scrutiny. CJMH is here to properly plan and document your tax strategies, and if necessary, defend them under IRS review.
This insights presented by Doug McCullough, partner. [email protected].