Renaissance Explores Settlement as IRS Seeks Billions in Taxes

  • Long-running tax dispute centers on flagship Medallion’s gains
  • Founder James Simons among executives who may bear the costs

James Simons

Photographer: Jin Lee/Bloomberg
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Hedge fund giant Renaissance Technologies is in talks to resolve a dispute with the Internal Revenue Service over a tax maneuver that saved its owners billions of dollars.

James Simons, the firm’s billionaire founder, and Robert Mercer, an influential backer of President Donald Trump, are among Renaissance insiders who profited from the maneuver and would bear the cost of a settlement. A resolution may entail “substantial” additional payments from investors in the flagship Medallion fund, the firm said in a December letter seen by Bloomberg.