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Wyden Recognizes Administration for Responding to His Push to Address Offshore Reinsurance Tax Loophole
Ranking Democrat Gave IRS Ninety-Day Deadline in February to Take Action
WASHINGTON –Oregon Sen. Ron Wyden, ranking Democrat on the Senate Finance Committee, today recognized the Internal Revenue Service’s (IRS) efforts to help stop offshore reinsurance tax avoidance by issuing formal guidance. Wyden has repeatedly called upon the IRS over the past year to clarify rules that would prevent hedge funds from operating as offshore insurance companies in order to avoid paying taxes.
“This glaring tax loophole has been a thorn in the side of taxpayers over ten years,” said Wyden. “I’m pleased that the IRS delivered on their promise from February to come to the table in ninety days with rules to help stop this abuse. The guidance they have issued today serves as an important first step down the path toward better enforcement. That said, we still have more work to do to close this tax loophole down for good, and I intend to continue to focus on doing just that.”
Guidance from the IRS can be found here.
Wyden previously gave the IRS a 90 day deadline to take action at a hearing with IRS Commissioner John Koskinen. Video of that hearing can be found here, and further information about the hearing can be found here.
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