Re-issue Rules on Partnership Basis Adjustments, ABA Asks IRS

The Tax Section of the American Bar Association is asking the IRS to re-issue and narrow a proposal on certain partnership related-party basis adjustment transactions.

The IRS should re-propose rather than finalize regulations on abusive use of partnerships for inappropriate basis adjustments, which the agency first proposed in June, the Tax Section said in a Nov. 15 letter to the IRS and Treasury Department, seeking changes to some parts of the proposed rules that set out to eliminate certain basis shifting benefits in identified transactions. The proposed rules are part of an effort by the Biden administration to crack ...