Partnerships Still IRS Target Despite Trump Rollbacks, Kies Says

The IRS will still pursue abusive partnership transactions, despite rolling back rules meant to target those moves, Kenneth Kies, assistant Treasury secretary for tax policy, told business executives Tuesday.

The Trump administration has largely reversed a Biden-era effort to increase oversight of partnership’s basis-shifting by working to withdraw rules meant to help the IRS tackle abusive transactions in court. The administration also hollowed out the IRS unit that formed under President Joe Biden to handle those cases, former IRS employees have told Bloomberg Tax.

The earlier rules would have required partnerships doing ordinary business transactions to file upwards of 100,000 ...