IRS to close tax loophole exploited by large partnerships

The federal government is closing a tax loophole exploited by large, complex partnerships. The U.S. Treasury and Internal Revenue Service estimate the action could raise 50 billion dollars in new revenue over 10 years. Going forward, the IRS will no longer allow partnerships to shift tax liabilities to related parties or different legal entities in order to maximize tax deductions and minimize liability. The change coincides with stepped-up enforcement by the IRS to increase audits of large, complex partnerships.