Biden-era enforcement initiative.
Former IRS Commissioner Danny Werfel, appointed by former President Joe Biden, launched a series of compliance enforcement initiatives in 2024 to increase scrutiny on high-income individuals and large corporations before stepping down as commissioner when President Donald Trump took office in January.
Last June, Werfel announced a campaign to prevent complex partnerships from using certain loopholes to generate tax benefits. At the time, Werfel said the IRS had identified the trend of partnerships abusing the Tax Code, specifically Code Sec. 732, Code Sec. 734(b), Code Sec. 743(b), and Code Sec. 755.
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