The IRS and Treasury Department proposed rules Thursday that would add basket contract transactions to its list of tax avoidance schemes.
The proposed regulations (REG-102161-23, RIN 1545-BQ89) require material advisers and certain participants in basket contract transactions and other similar transactions to file disclosures with the IRS. They face penalties for failure to disclose.
The proposal comes as the IRS has targeted wealthy taxpayers, including large partnerships, to close the tax gap, or the difference between taxes paid and owed.
Basket contracts are a type of structured financial transaction where a taxpayer tries to defer income recognition and ...
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