S.2094

Basis Shifting is a Rip-off Act modifies partnership rules to prevent tax avoidance through basis-shifting transactions.

The Basis Shifting is a Rip-off Act amends the Internal Revenue Code to modify partnership rules for taxation of basis-shifting transactions involving related parties. It ensures that gain is recognized in certain distributions and transfers, adjusts the basis of partnership property, and applies accuracy-related penalties for understatements. The changes apply to distributions and transfers occurring after June 11, 2025.