Warren Prods Treasury and IRS to Flex Muscle on Tax Dodges

Progressive senators called on the Treasury Department and IRS to use their rulemaking authority to craft regulations cracking down on gaps in the law they said allows rich Americans and global companies to avoid paying tax.

The group led by Sen. Elizabeth Warren (D-Mass.) sent a letter suggesting the agency write new rules to halt abuse of trusts and other provisions to avoid taxes on assets, shore up rules on subsidiaries’ passive earnings for large multinationals, and clarify that fund managers and other businesses should pay payroll taxes.

The letter, dated Monday and addressed to Treasury ...