Here is a concise and accurate response to the query, citing the most relevant search results:
The IRS has taken steps to combat the abusive use of tax loopholes that allow individuals and companies to lower their tax liability. Some common tax loopholes include:
The Carried Interest Loophole: This allows hedge fund managers, venture capitalists, and private equity partners to have their compensation taxed at the lower long-term capital gains rate rather than the higher regular income tax rate.[1][3]
Backdoor Roth IRAs: This loophole allows high-income individuals to contribute to a Roth IRA indirectly by first contributing to a traditional IRA and then converting it to a Roth, bypassing the Roth IRA income limits.[1][4]
The IRS has announced new initiatives to close these types of loopholes, which they estimate could raise over $50 billion in additional revenue over the next decade.[2][3] The agency is also increasing audits of wealthy individuals with incomes over $10 million to target tax evasion and the improper use of loopholes.[3]
While tax loopholes are legal, the IRS views many as "abusive" and is working to eliminate them, as they enable wealthy taxpayers to avoid paying their fair share.[2][3]
Citations:[1] https://smartasset.com/taxes/tax-loopholes
[2] https://www.irs.gov/newsroom/irs-announces-new-steps-to-combat-abusive-use-of-partnerships-agencys-focus-intensifies-as-new-guidance-closes-loopholes-worth-tens-of-billions
[3] https://www.cbsnews.com/news/irs-tax-loophole-50-billion-basis-shifting/
[4] https://www.unbiased.com/discover/taxes/tax-loopholes
[5] https://consent.yahoo.com/v2/collectConsent