I.R.S. Cracks Down on Hedge Fund Tax Strategy

So-called basket options—complex financial structures that allowed hedge funds like Renaissance Technologies to bypass taxes on short-term trades—will now be labeled listed transactions, the I.R.S. said. This means that anyone using the options must declare them on their tax returns. They will be penalized if they fail to do so. (Tweet This)
The new I.R.S. guidance will be retroactive, applying to all transactions as far back as Jan. 1, 2011.

http://www.cnbc.com/id/102820869