IRS unleashes $50b crackdown on wealthy tax dodgers: Trump's elite circle braces for impact

The Internal Revenue Service (IRS) has announced an aggressive crackdown on wealthy tax cheats, aiming to collect an astounding $50 billion over the next decade. This initiative targets long-abused tax loopholes, particularly those exploited by affluent business partnerships.

IRS Commissioner Danny Werfel revealed that many of these companies engage in “basis shifting,” a tactic where money is moved from one property to another without economic substance, solely to reduce tax liabilities.

“In the audits we’re doing today, we are seeing systemic use of basis shifting where there is no economic substance to the transaction. That is not allowed,” Werfel stated. “That allows them to inappropriately avoid taxes they owe, and this guidance today is intended to end that practice.”

This sweeping reform is bolstered by significant funding from President Biden’s Inflation Reduction Act, which has empowered the IRS with the resources needed to enforce tax laws more rigorously. Treasury Secretary Janet Yellen praised the move, saying, “Thanks to resources from President Biden’s Inflation Reduction Act, Treasury and the IRS have the tools to stop longstanding abuses.”

The news has sent shockwaves through the elite circles of former President Donald Trump, where many of his wealthy allies may find themselves under increased scrutiny. Republicans, whose policies often favor the affluent, have expressed outrage, arguing that the initiative targets their key supporters.