Companies must now report tax details for corporate splits for several years

The US Treasury wants companies to report tax information for corporate separations for multiple years. This would make sure companies prove their tax-free status for these transactions.

For decades, companies could split into new entities and claim tax-free status with minimal ongoing reporting. This change means the government can now track these transactions over time. It makes it harder for companies to use complex corporate structures to avoid taxes without long-term scrutiny.