IRS Push Aims to Stop Partnership Maneuver and Raise $50 Billion

The IRS is expanding its campaign to stop complex partnerships from inflating tax deductions and avoiding paying what they owe, launching a new effort that the Treasury Department estimates could raise more than $50 billion. dollars over 10 years.

The IRS and Treasury said Monday the government will propose regulations to end partnership basis transfer transactions that give businesses a tax advantage. Such transactions involve a company shifting the tax base between related legal entities in order to maximize deductions and reduce tax liability without economic consequences.

This effort aligns with President Joe Biden’s attempts to crack down on taxes…