In response to yesterday’s New York Times front page story that Blackstone had devised a clever deal structure to allow its partners to avoid paying tax on $3.7 billion, most of which it raised in last month’s IPO (blogged here), Blackstone has issued this press release (Blackstone Says The New York Times Inaccurate and Misleading; Partners to Pay Over $900 Million in Taxes as a Result of IPO):

Blackstone Group said today that a front page article in The New York Times is filled with inaccuracies, myths, and misrepresentations that give a false impression of Blackstone’s tax situation and that of its partners. Blackstone is not in any way taking advantage of tax loopholes, but rather is using a standard tax method used widely by private and public companies when business assets are sold.

Press and blogosphere coverage:

• ataxingmatter:  Partnership Carried Interests: The Discussion Continues, by Linda Beale
• Bloomberg:  Blackstone Founders May Offset Taxes on IPO Profits (Update 6), by Ryan J. Donmoyer
• Citizens for Tax Justice:  No "Good Will" for Blackstone’s Tax Hijinks
• Greg Mankiw’s Blog:  Carried Interest, by Greg Mankiw
• Wall Street Journal:  Private-Equity Tax Strategy Draws Attention in Congress, by Jesse Drucker
• Washington Post:  Blackstone Denies Report It Avoided Tax, by Jeffrey H. Birnbaum