IRS Closes in on Axing Biden-Era Partnership Oversight Rules (2)

The IRS and the Treasury Department are getting closer to scrapping tougher oversight of a move that complex partnerships have used to reduce their tax obligations.

The agencies proposed regulations (RIN 1545-BR57; REG-108921-25) Thursday to rescind final rules that require the reporting of partnerships’ basis-adjustment transactions to the IRS, as potentially abusive “transactions of interest.”

Treasury and the IRS indicated last April that they planned to withdraw those rules, as part of a broader pullback of an aggressive IRS effort to get tough on big partnerships. That effort, under former President Joe Biden, has been crippled, and the ...