In a testimony before the House Appropriations Committee, IRS Commissioner Danny Werfel announced a plan to close a significant tax loophole used by large partnerships. This loophole, related party basis shifting, allows businesses to manipulate asset purchase prices to avoid paying taxes. The U.S. Department of Treasury estimates that this plan could generate over $50 billion in additional tax revenue over the next decade. The proposed regulations aim to target tax shelters that enable wealthy taxpayers to underpay, increasing tax fairness and reducing the deficit. This initiative is part of a broader strategy to crack down on high-end tax abuse, with a focus on auditing the wealthiest individuals, large corporations, and complex partnerships. Treasury Secretary Janet Yellen emphasized the importance of addressing tax avoidance from all angles to promote fairness and financial responsibility.