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Wider Circuit Court ImplicationsThe First and Second Circuits also have cases pending on the meaning of %u201climited partner%u201d for purposes of the self-employment tax. If those circuits adopt a passive investor test, a circuit split would result, and the U.S. Supreme Court could eventually resolve the question.ConclusionSirius Solutions marks a significant shift back to following the statute%u2019s plain text and restores a state-law grounded definition of %u201climited partner%u201d in the Fifth Circuit. While it brings much needed clarity in the Fifth Circuit, the litigation in other circuits will continue. For questions about how this ruling may impact you, please contact the authors or another member of Holland & Knight%u2019s Tax Controversy and Litigation Practice.Fifth Circuit Rejects Government%u2019s %u201cPassive Investor%u201d Test for Limited Partner Exception%u2013 continuedInformation contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.