The IRS wants to end another major tax loophole for the wealthy and raise $50 billion in the process

By JOSH BOAK and FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The Internal Revenue Service plans to end another major tax loophole that could raise more than $50 billion in revenue over the next decade. That’s according to the U.S. Treasury. New guidance and a ruling being announced Monday includes plans to stop “partnership basis shifting” — a process by which a business or person can enter into a series of transactions to avoid taxes. Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo saying it was “really just a shell game.” The officials stressed that the additional IRS funding through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.