From www.accountingtoday.com: (US context) The Treasury Department and the IRS plan to withdraw regulations that classified basis-shifting transactions among partnerships and related parties as “transactions of interest,” which had previously been targeted for penalties.

The decision comes in response to widespread criticism that the regulations imposed burdensome compliance obligations on businesses.

Former IRS Commissioner Danny Werfel had initiated a crackdown on these transactions, estimated to cost taxpayers over $50 billion, but Congress has since reduced IRS funding and resources for enforcement efforts.