Reported 8 months ago
The U.S. Treasury and IRS announced plans to close a tax loophole used by large partnerships, estimating it could generate $50 billion in new revenue over a decade. This action aims to prevent shifting tax liabilities within related entities to reduce tax burdens. The IRS is increasing audits of complex partnerships and releasing proposed regulations to stop tax basis shifting. Additionally, a revenue ruling will declare certain transactions as lacking economic substance to support IRS audits. The move follows a significant rise in partnership tax filings alongside a decrease in audit rates due to budget cuts.
Source: YAHOO