IRS to raise $50 billion over 10 years by closing loophole exploited by the wealthy
How much does the IRS estimate it will raise over the next decade by closing this loophole?
The IRS estimates it will raise more than $50 billion over the next decade by closing the loophole often exploited by wealthy filers seeking to avoid paying taxes.
By what percentage did the use of pass-through businesses increase from 2010 to 2019?
The use of pass-through businesses increased by 70% from 2010 to 2019.
What specific loophole is the IRS planning to close that is commonly exploited by wealthy filers and businesses?
The specific loophole that the IRS is planning to close, which is often exploited by wealthy filers and businesses, involves the use of pass-through businesses to move assets between entities in a way that authorities say has no economic purpose. This practice, referred to as a "shell game" by Deputy Treasury Secretary Wally Adeyemo, has contributed to the increased use of pass-through businesses and has allowed the top 1% to avoid paying $160 billion in taxes. The IRS estimates that closing this loophole will raise more than $50 billion over the next decade.