The IRS wants to end another major tax loophole for the wealthy and raise $50 billion in the process
The IRS wants to end another major tax loophole for the wealthy and raise $50 billion in the process
The guidance and ruling being announced Monday includes plans to essentially stop “partnership basis shifting."
The IRS plans to end a major tax loophole for wealthy taxpayers that could raise more than $50 billion in revenue over the next decade, the U.S. Treasury Department says.
The guidance and ruling being announced Monday includes plans to essentially stop “partnership basis shifting” — a process by which a business or person can move assets among a series of related parties to avoid paying taxes.
Biden administration officials said after evaluating the practice that there are no economic grounds for these transactions, with Deputy Treasury Secretary Wally Adeyemo calling it “really just a shell game.” The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
“These tax shelters allow wealthy taxpayers to avoid paying what they owe,” IRS commissioner Danny Werfel said.
The officials said the additional IRS funding provided through the 2022 Inflation Reduction Act had enabled increased oversight and greater awareness of the practice.
Thank goodness for that!
And, yes, do it!
This is the way.
Indeed. Also, Republicans have already proposed dramatic cuts to the IRS, so we should be under no illusions about what will happen to this loophole and Direct File if Trump & Co. take control in November.
They have been gutted for a decade. It was a genius move to circumvent their complete failure by using the inflation reduction act.
Every dollar invested in the IRS give more than that in taxes from cheaters. Worth it
Yeah, it's a whopping 600% in general and DOUBLE that for auditing the top 10%!
If you're for the government being fiscally responsible (rather than pretending that macroeconomic systems are identical to household budgets) you want rule changes like the one mentioned in the headline as well as more funding for auditing and other enforcement of existing IRS rules.
The IRS processed 162 million tax returns in FY 2023. If they raise $50 billion, then that means $308 for every taxpayer in America, courtesy of the IRS.
Honest taxpayers rejoice. Tax cheats, go cry about it.
Really it has no impact on most of us. I have never used a partnership tax basis shift and almost certainly never would have. It is going to cost a bunch of obscenely wealthy jerks some money and cost the rest of us nothing. Win-win.
Really it has no impact on most of us
No NEGATIVE impact, you mean.
Taking money that would otherwise just be passed back and forth between billionaires and hectomillionaires hurts nobody.
Investing that money in any of the thousands of critically underfunded parts of the government (education, infrastructure including Internet, antipoverty programs, and public defenders being some of the most important ones) could be absolutely TRANSFORMATIVE, especially for those most in need and/or most abused by the current status quo.
What say you, "no new taxes, just close loopholes" Republicans?
but they worked to hard to create those loopholes.
don't you value honest work?
"We have been dead for 20 years."
"There are so many other loopholes, we should focus on the ones poor people use"
Which republicans might those be? The only ones I hear about are “exploit the loopholes and cut taxes for the rich” kind.
That's SOCIALISM!
-Fiscally Responsible Republicans who rely on Food Stamps.
Food Stamps.
Kick ass, IRS. Between this, tye free filing program and the new automatic taxes, I'm ecstatic about cheering them on.
Easy to cheer them on when they're talking other peoples money...
They take my money, and I'm fine with paying my fair share. Easy to cheer them on for going after the shits that don't.
Easy to cheer them on when they're forcing tax avoiders to pay taxes like the rest of the population.
Easy to cheer them on when they're fixing loopholes constructed and exploited by the wealthy.
Easy to cheer them on when they're streamlining a woefully archaic tax system.
They are using far more of the courts, currency, and infrastructure than we are. They are getting police protection of their property instead of having their pets murdered. They are getting massive government handouts that we are not.
They can start paying their fair share.
They take my money too and I'm OK with it so if they get to take money from people who make 2000 times more money then me and don't pay their share I will cheer it on.
Its ok, they're doing it to a group of people who also make their money from taking other peoples money. So, cheer away at the poetic justice.
Moron
Do it!
My dad be like the job creators need that money so it can trickle!
Is there a way for Republicans to block this? Because if so, they'll block it.
Under Trump and Republicans, they were actively defunding the IRS and forcing them to reduce staff. Can't audit a billionaire when theyre shorthanded.
Even though every dollar invested in the IRS is a multiplier.
They could refuse aid to Ukraine until the new rules are scrapped like they did last time
I wonder how many low income earners in America are getting riled about this right now.
The IRS always says they're gonna target the wealthy, but most of their audits are lower income people because they're easier targets.
Doesn't help when repubs are always cutting funding to the IRS. Sigh.
Do your thing here IRS.
After watching Finding The Money, terms like “raise” and “revenue” applied to taxes seem deliberately misleading.
What words would you use in their place?
I'm not sure. I'm not a wordsmith or an economist. But I would expect it to be something that conveys a sense that the money is being decommissioned rather than mobilized, or annihilated rather than gathered.
But the sense of deactivation or destruction is usually a negative feeling, so I would want to find a word that puts a slight positive spin on it. This is a happy conclusion to the money's journey. Its task is done and the inflationary pressure associated with its work is now relieved.
Wealthy taxnonpayers
Could you also please allow those of us overseas to use silly things like retirement accounts without having it all be considered PFICs? I just wanna contribute to my current country's equivalent of an ISA/401K type of thing.
Do it. Dont let your dreams be dreams.
It's still not enough!