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Venture
Fund Tax

Venture Fund Tax is part of Formidium's tax services group. We offer a full suite of tax services to solve any complexities and challenges in tax calculations, reporting, and filings for venture and private equity funds. We offer our all-inclusive tax services to a vast network of managers and funds located globally.

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Why Venture Fund Tax ?

Venture Fund Tax is part of Formidium's tax services group. We are a licensed CPA firm in Downers Grove, IL, serving over 350 clients for their tax reporting. We offer our all-inclusive tax services to a vast network of managers and funds globally, covering asset classes like venture investments/funds, real estate, private equity, and other closed ended funds investing in illiquid assets. Our experienced and qualified service team of 50+ individuals takes care of tax filings and reporting of scheduled K-1s for your investors. 

Using our proprietary technology and extensive research, our tax specialists provide you with industry-leading tax support coupled with the highest level of client service.

Services we offer

We provide comprehensive tax services across Venture Fund Tax entire lifecycle, as described below:



  • Review of private placement memorandum tax section.
  • Preparation of U.S. federal returns (1065, 1120, 1120-S) and state tax returns for all U.S. states, including composite tax returns, handling state filing fees, etc.
  • Preparation of all supporting and additional tax forms that are filed along with federal and state tax returns. (Form 8949, 4797, 8825, 8990, 8082, 8832-B, etc.)
  • Preparation of federal and state schedule K-1 reporting for investor.
  • Partner tax allocations using appropriate allocation methods.
  • Preparation and compliance with foreign investments. (Form 5471, 8865)
  • U.S. tax reporting and compliance for Non-U.S. investors. (Form 1042, 8804, 8805)
  • Preparation of international reporting tax forms K-2 and K-3.
  • Preparation of other miscellaneous forms like Form 1099s, name change, address change forms, and many more.
  • Preparation of responses to IRS and state revenue notices.
  • Offering and organizing cost amortization, book-to-tax reconciliations, maintaining tax basis for investors' capital and Venture Fund Tax investment, and handling the assignment of interest from one investor to another.
  • Tax lot level capital gain/loss calculations, wash sales calculation.
  • Unrelated business taxable income (UBTI).

We provide comprehensive tax services across Venture Fund Tax entire lifecycle, as described below:



  • All the items covered for U.S. Venture Fund Tax.
  • Preparation of foreign partnerships and blocker corporations' tax returns, including foreign master-feeder structures.
  • Analysis of Venture Fund Tax structure to determine its applicable U.S. tax filings. (Passive foreign investment company vs. controlled foreign corporation determination)
  • Filing applicable tax forms for non-U.S. Venture Fund Tax, including Form 8621, 5472 reporting.
  • Preparation of K-1 equivalent forms for Non-U.S. Venture Fund Tax investors, including PFIC/CFC reporting.

Our tax services are tailored to venture funds, providing comprehensive analysis and customized tax adjustments in areas including:



  • Schedule K1 received from underlying venture investments.
  • Distribution waterfall for venture fund tax allocation.
  • Considerations for committed capital structures in venture funds.
  • Carry interest allocations and reporting as per IRC 1061.
  • Net investment income tax (NIIT) under IRC 1411 applicable on dividends, interest, and capital gains above certain thresholds.
  • Business interest expense limitations per IRC 163J.
  • Treatment of qualified business income according to IRC 199A.
  • Considerations for managing tax obligations upon exit or liquidation of investments.
  • Analysis of qualified small businesses stock under section 1202.
  • Reporting of recourse and non-recourse liability.
  • Global Intangible Low - Taxed Income. (GILTI)
  • Foreign-derived intangible income. (FDII)
  • Net operating losses and itemized deductions specific to venture funds.
  • Withholding requirements on effectively connected income and fixed, determinable, annual, and periodical income generated by venture funds.
  • Calculation of state source income apportionment factors and state tax withholdings.