IRS announces strategy to eliminate tax evasion for pass-through companies

At Extreme Investor Network, we are always on top of the latest developments in personal finance, especially when it comes to tax loopholes and strategies used by large partnerships to avoid paying their fair share. Recently, the U.S. Department of the Treasury and the IRS announced a plan to crack down on a major tax loophole that could result in more than $50 billion in additional tax revenue over the next decade.

The plan targets “related party basis shifting,” a tactic used by businesses operating through different legal entities to manipulate asset prices and reduce their tax burden. IRS Commissioner Danny Werfel noted that these tax shelters enable wealthy taxpayers to avoid paying what they owe, and the proposed regulations aim to close this loophole and increase tax fairness.

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This initiative is part of ongoing efforts by the IRS to increase audits on the wealthiest taxpayers, large corporations, and complex partnerships. The Treasury and the IRS are committed to addressing high-end tax abuse from all angles, and these proposed rules are a step towards reducing the tax gap attributed to the top 1% of tax filers.

The battle over IRS funding has also been a key issue, with President Joe Biden’s economic advisor advocating for sustained funding to ensure that ultra-wealthy taxpayers pay their fair share. Maintaining the President’s investment in the IRS is crucial to closing tax loopholes and ensuring that everyone plays by the same rules.

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At Extreme Investor Network, we understand the importance of staying informed about changes in tax policies and regulations that could impact your financial well-being. Our expert analysis and insights can help you navigate the complex world of personal finance and make informed decisions to secure your financial future. Stay tuned for more updates on the latest developments in the world of personal finance.

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