Latest IRS effort to target wealthy tax cheats could raise $50 billion over a decade

The Internal Revenue Service announced Monday its latest move to crack down on wealthy tax cheats – an ongoing effort boosted by funding received through the Democrat-backed Inflation Reduction Act.

The Internal Revenue Service announced Monday its latest move to crack down on wealthy tax cheats – an ongoing effort boosted by funding received through the Democrat-backed Inflation Reduction Act. The agency estimates the new initiative could result in the collection of $50 billion over 10 years by closing a major tax loophole used by some business partnerships to avoid paying taxes they owe. As the November election approaches, the Biden administration is eager to show how it’s using money from the 2022 legislation – which provided the IRS with a massive, 10-year investment – to bring in more tax revenue and modernize taxpayer services. “Thanks to resources from President Biden’s Inflation Reduction Act, Treasury and the IRS have the tools to stop longstanding abuses,” Treasury Secretary Janet Yellen said in a press release. Republicans are at odds with Democrats over the IRS funding. They’ve criticized the additional money as wasteful spending and have made several efforts to chip away at the agency’s budget. The IRS initiative unveiled Monday, which consists of several pieces of regulatory guidance, targets abuse of what’s known as “basis shifting transactions.”