Treasury Secretary Scott Bessent has quietly resolved a yearslong tax dispute with the IRS tied to a hedge fund maneuver that reduced his Medicare taxes, according to a person familiar with the matter. As a fund manager before joining President Trump’s Cabinet, Bessent used a structure that let him treat much of his income as business earnings not subject to the 3.8% Medicare levy, reports the New York Times. Senate Democrats previously estimated the tactic shrank his tax bill by $910,000 over three years, a figure that Bessent challenged, while still pledging to reserve money in case courts sided with the IRS. An appeals court did just that last month, prompting Democrats to press Bessent on whether he’d pay up.
