Biden Administration Targets Major Tax Loophole, Aims to Raise $50 Billion

Jun 17, 2024, 05:33 PM

The Biden administration, through the U.S. Treasury Department and the Internal Revenue Service (IRS), has announced a new initiative to close a significant tax loophole exploited by large partnerships and wealthy taxpayers. This loophole, known as 'partnership basis shifting,' allows entities to move assets among related parties to avoid paying taxes. The Treasury and IRS estimate that closing this loophole could raise more than $50 billion in revenue over the next decade. This effort, announced Monday, is part of a broader campaign to prevent complex partnerships from inflating tax deductions and to increase audits of wealthy tax filers.