12/05/2024

Treasury Now Says Closing Asset Loophole Can Raise $100 Billion in Taxes

The new estimate doubles what the agency previously said it could recover

The Biden administration has doubled its estimate of how much money it can collect by cracking down on an arcane tax avoidance scheme.

Months after saying it expects to collect at least $50 billion over the next decade by stopping large business partnerships from manipulating the taxable value of assets or depreciating the same assets repeatedly for tax deductions, the Treasury Department has quietly updated its forecast to more than $100 billion.

The IRS' pledge to go after the practice known as “basis shifting” has made waves among accountants for the largest and most complex business partnerships. Some of them say that the true amount of taxes avoided far dwarfs even the $100 billion figure, though the IRS is unlikely to ever find anywhere close to all of the money.

Please select this link to read the complete article from The Washington Post.