IRS Targets Wealthy Taxpayers with New Rules to Close $50 Billion Loophole

The IRS and Treasury Department's crackdown on 'basis shifting' aims to increase tax fairness and reduce the deficit.

The IRS plans to eliminate 'basis shifting,' a tactic used by wealthy individuals and corporations to avoid taxes through complex partnerships.
The crackdown is expected to generate $50 billion in revenue over the next decade.
This initiative is part of a broader effort funded by the Inflation Reduction Act to address high-end tax abuse.
IRS Commissioner Danny Werfel emphasized that the practice has no economic substance and is intended solely to reduce tax bills.
Republicans and critics argue that the IRS's increased funding and enforcement could lead to overreach and impact lower-income Americans.