The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says.
The guidance and ruling being announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo calling it “really just a shell game.” The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS commissioner Danny Werfel said.
There is 0% chance this change would actually result in $50 billion more in tax revenue, lol.
This is political theater in an election year.
Every other year is an election year or right before an election year. The IRS is not a political body. Its commissioner is a civil servant.
All I’m saying is look up and familiarize yourself with “dead cat strategy”, and don’t hold your breath for this to yield anything substantial if put into practice.