Van Hollen, Warren, Sanders, Whitehouse Secure Ruling from IRS to Crack Down on Abuse of Trusts to Dodge Taxes, Urge Further Actions
Following a letter from U.S. Senators Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), and Sheldon Whitehouse (D-R.I.), the Internal Revenue Service (IRS) issued a ruling to crack down on a loophole that helps the ultra-wealthy dodge taxes.
Last month, the senators wrote to Treasury Secretary Janet Yellen, raising concerns that the wealthiest millionaires and billionaires use increasingly complex tax planning to exploit trusts and avoid paying taxes, including through Intentionally Defective Grantor Trusts (IDGTs). The lawmakers urged Secretary Janet Yellen to use the full extent of the Department’s regulatory authority to crack down on the use of trusts to dodge paying their fair share in taxes.
“This action from the Treasury Department is an important step in ensuring wealthy tax cheats pay their fair share in supporting prosperity for all. While there’s more to do, this ruling will close a loophole that would have allowed the ultra-wealthy to get away without paying what they already owe, leaving everyday Americans to foot the bill,” said Senator Chris Van Hollen.
“I applaud this action from Treasury to crack down on the IDGT loophole that has been helping the super wealthy dodge taxes – but there is much more that the Department can and should do,” said Senator Elizabeth Warren. “Along with Senators Van Hollen, Whitehouse, and Sanders, I’ll keep pushing for a tax system that makes the wealthy pay their fair share.”
The ruling from the IRS is available here.
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