Treasury and IRS Crack Down on Tax Loophole. Over $50 Billion in Revenue Expected.
The U.S. Department of the Treasury and the IRS have announced a plan to close a significant tax loophole used by large partnerships. This initiative addresses "related party basis shifting," a tactic that allows businesses to manipulate asset purchase prices for tax benefits. This move is expected to generate over $50 billion in revenue over the next decade. The plan includes proposed regulations and a revenue ruling to curb transactions lacking economic substance. The effort is part of a broader strategy to increase audits and ensure wealthy taxpayers pay their fair share, addressing a tax gap attributed to the top 1% of filers.
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00:00It's Benzinga, and here's what's on the block.
00:03The U.S. Department of the Treasury and the IRS have announced a plan to close a significant
00:07tax loophole used by large partnerships.
00:10This initiative aims to address related party basis shifting, a tactic that allows businesses
00:15to manipulate asset purchase prices for tax benefits.
00:19This move is expected to generate over $50 billion in revenue over the next decade.
00:24The plan includes proposed regulations and a revenue ruling to curb transactions lacking
00:28economic substance.
00:29The effort is part of a broader strategy to increase audits and ensure wealthy taxpayers
00:34pay their fair share, addressing a tax gap attributed to the top 1% of filers.
00:39For all things money, visit Benzinga.com.