Bessent settled dispute over tax issue with IRS

"Thus, the law of the land for the Second Circuit — which includes New York and Connecticut, where your hedge fund was headquartered and operated — is now the IRS position that you disregarded during your confirmation process," the Democrats, led by Sen.

Official response and confirmed impact

It is unclear when exactly Bessent settled the tax issue, just as it is unclear how much in additional tax he may have paid to the IRS.

Under Bessent, the IRS is in a weaker position to enforce the issue more broadly.

The agency has lost many of its auditors, and the Treasury and IRS also abandoned an effort, started under the Biden administration, to develop regulations addressing the tax maneuver.

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Incident under investigation

Ron Wyden of Oregon, wrote. "Now that the appellate court has spoken, will you use your reserve fund to pay the avoided tax?"