The US Treasury will no longer track how companies avoid taxes during mergers

The US Treasury Department has withdrawn proposed rules that would have required companies to report how they avoid taxes during corporate separations and reorganizations. This means companies will not have to disclose these tax strategies to the government for multiple years after a merger.

The government was trying to get a clearer picture of how companies use complex transactions to reduce their tax bills. Without these reporting requirements, it remains harder for the IRS to identify and challenge aggressive tax avoidance strategies. This decision removes a potential new source of data for tax authorities.