US Government seeks to curb investment strategies avoiding capital gains taxes

US Government: The US Government, acting primarily through the Treasury Department and Internal Revenue Service, administers federal tax laws and issues guidance on investment practices. Officials have recently focused on curbing aggressive strategies that allow investors to defer or eliminate capital gains taxes via ETF structures. This aligns with announcements targeting specific maneuvers in the ETF space and signaling broader reviews of tax-avoidance tactics. Regulation: The IRS issued new guidance on September 28 targeting aggressive 351 conversions involving ETFs to prevent the deferral of capital gains taxes without an immediate tax bill. Tax Policy: US Treasury officials have indicated consideration of actions against additional investment tactics capable of eliminating ordinary income taxes.