The guidance includes plans to stop 'partnership basis shifting,' a process used to move assets among related parties to evade taxes, labeled as a 'shell game' by Deputy Treasury Secretary Wally Adeyemo.
IRS commissioner Danny Werfel criticizes tax shelters enabling wealthy taxpayers to evade taxes, while the IRS increases scrutiny due to boosted funding and a $160 billion gap between taxes owed and paid by the top 1%.
IRS initiatives target high-wealth individuals through enhanced audits, focusing on tax code manipulations and non-compliance, such as improper deductions on personal flights and collecting back taxes from delinquent millionaires.
The IRS plans to significantly raise audit rates on large companies with assets exceeding $250 million, aiming to reach a 22.6% audit rate by 2026 from the current 8.8% rate.
[
Collection
]
[
|
...
]