Tax Pros Predict Rocky Road for Basis-Shifting Initiative

Tax attorney Lee Meyercord was quoted in a Tax Notes article discussing new guidance by the U.S. Department of the Treasury (USDT) and Internal Revenue Service (IRS) on basis-shifting transactions. The updated regulations seek to prevent partnership transactions that lead to improper tax benefits. However, tax professionals like Ms. Meyercord are raising concerns over the guidance, anticipating legal challenges and questioning whether it will actually manage the issue for the government.

"The guidance will almost certainly be subject to a challenge that the IRS lacks the authority to change the result dictated by the relevant statutes," she explained.

READ: Tax Pros Predict Rocky Road for Basis-Shifting Initiative (Subscription required)