IRS crack down on tax loophole could raise $50 billion

(CNN)– On Monday, June 17, the Internal Revenue Service announced its closing a major tax loophole that could raise $50 billion over a decade.

It’s an ongoing effort boosted by funding received through President Biden’s Inflation Reduction Act.

The loophole is called “Basis Shifting Transactions”.

In them, complex business partnerships move money from one property to another to maximize tax deductions and minimize their tax liability.

The IRS will now be on the lookout for these kinds of transactions that have no substantial business purpose other than to reap a tax benefit.