IRS To Crack Down On ‘Basis Shifting’ Tax Avoidance By Business Partnership

June 20, 2024 by Tracey Longo

The Biden administration is ramping up new audit teams and regulations to collect some $50 billion in taxes over the next decade from business partnerships such as hedge funds, real estate investors and wealthy individuals it says inappropriately use “basis shifting” to avoid paying taxes, the Treasury Department announced.

The Biden administration says business partnerships are shielding tens of billions of dollars from taxation by using basis shifting, which allows them to move assets from one entity to another on paper for no reason other than to reduce or avoid taxes.

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Originally Posted at Financial Advisor on June 17, 2024 by Tracey Longo.