Basis Shifting is a Rip-off Act
In committee: it can still change before the session ends.
- Stage
- In committee
- Started in
- Senate
- Sponsor
- 1
- Latest action
- Jun 17, 2025
What it does
The Basis Shifting is a Rip-off Act amends the Internal Revenue Code to prevent tax avoidance through basis-shifting transactions between related partners in partnerships. It requires gain to be recognized on certain distributions of property from applicable partnerships—defined as those with two or more related partners—to the receiving partner, and also requires the partnership itself to recognize gain when such distributions increase the basis of distributed property. The bill increases accuracy-related penalties from 20% to 40% for understatements attributable to these transactions and applies to distributions and transfers occurring after June 11, 2025. It includes a small business…
No official summary is available here. This one was written by AI from the bill’s text.
Where it stands
Introduced (Done)
Committee (Current step)
Floor (Not started)
Law (Not started)
What moved
Who is involved
Sponsors
The lawmakers who put their names on it, lead sponsors first.
Where it goes next
While a bill can still move, the questions are about people and money.