Business Advocates Applaud IRS Clawback of Basis-Shifting Plans

Business advocates and advisers welcomed the government’s move to claw back its previous plans to get tougher on a type of transaction that helps complex partnerships. But lots of questions remain about what happens next.

The Treasury Department and the IRS said Thursday they were scrapping plans first announced last year to crack down on basis-shifting transactions involving related parties in partnerships. Business groups had called for such a move, arguing that the crackdown was too broad and would have affected many legitimate transactions, in addition to the planned targeting of abusive transactions that help partnerships cut their tax bills. ...