IRS Push Aims to Stop Partnership Maneuver, Raise $50 Billion (1)

The IRS is expanding its campaign to prevent complex partnerships from inflating tax deductions and avoiding paying what they owe, launching a new effort that the Treasury Department estimates may raise more than $50 billion over 10 years.

The IRS and Treasury Monday said the government will propose regulations to stop partnership basis shifting transactions that give companies a tax advantage. Such transactions involve one business shifting tax basis between related legal entities to maximize deductions and shrink tax liability without economic consequences.

The effort aligns with President Joe Biden’s attempts to crack down on tax ...