Narrowing Partnership Basis-Shift Rules Was Needed, IRS Says

The Treasury and IRS felt it was appropriate to narrow the scope of partnership basis adjustments that must be reported, while still enabling the agencies to identify and tackle potential abuses, an IRS attorney said Tuesday.

Final rules issued by the IRS and Treasury on Jan. 10 raised the thresholds for reporting partnership-related basis adjustment transactions.

The IRS hopes the regulation “hits the spot and gives us the transactions we can look at that have the potential for tax avoidance,” Richard Blumenreich, special counsel in the IRS Office of Associate Chief Counsel, said at a conference of the New York ...