CPA Group Urges IRS to Void Related-Partner Basis Shifting Rule

The American Institute of CPAs is asking the Treasury Department and the IRS to revoke a final regulation related to identifying certain partnership related-party basis adjustments as transactions of interests.

The IRS in January released the final rules requiring taxpayers to report certain transactions, including basis-shifting adjustments, which refers to the change of an asset’s cost basis when transferred between related-parties. Under the regulation, partnerships must self-identify all transactions from the last six years involving related-party basis shifting over a certain threshold.

The CPA group said in its letter that the disclosure requirements included transactions that are routine and non-abusive, ...