IRS, Treasury Begin Initiative to Close $50 Billion Tax Loophole

The effort is designed to ’stop large, complex partnerships from using opaque business structures to inflate tax deductions and avoid taxes.’
IRS, Treasury Begin Initiative to Close $50 Billion Tax Loophole
Treasury Secretary Janet Yellen speaks about goals for the 2024 tax-filing season, at the IRS headquarters in Washington, on Nov. 7, 2023. Stefani Reynolds/AFP via Getty Images
Naveen Athrappully
Patricia Tolson
Updated:
0:00

The U.S. Treasury Department and the IRS have begun an initiative aimed at closing major tax loopholes they say are used by wealthy taxpayers and corporations, including hedge funds, law firms, and real estate and investment partnerships, to avoid paying full taxes.

On June 17, the two agencies announced a regulatory effort “that will stop large, complex partnerships from using opaque business structures to inflate tax deductions and avoid taxes.”