IRS to raise $50 billion over 10 years by closing loophole exploited by the wealthy
The IRS estimates it will raise more than $50 billion over the next decade by closing a loophole often exploited by wealthy filers seeking to avoid paying taxes.
The IRS estimates it will raise more than $50 billion over the next decade by closing a loophole often exploited by wealthy filers seeking to avoid paying taxes.
The loophole allows such taxpayers, as well as businesses, to move assets between entities in a way that authorities say has no economic purpose. Deputy Treasury Secretary Wally Adeyemo called the practice “really just a shell game" in a statement.
The use of such pass-through businesses has increased 70% from 2010 to 2019 and helped allow the top 1% avoid paying $160 billion in taxes, Treasury said.
“Treasury and the IRS are focused on addressing high-end tax abuse from all angles, and the proposed rules released today will increase tax fairness and reduce the deficit,” Treasury Secretary Janet Yellen said in a statement.
The plan builds on ongoing IRS efforts to increase audits of the wealthiest taxpayers, large corporations and complex partnerships.
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