<p style="text-align: justify;">Treasury has answered a letter from Democratic Representatives voicing suspicions that the contribution limits for tax-deferred retirement accounts are being avoided by undervaluing the contributed assets.   Treasury highlighted the IRS’s enforcement efforts, opined that current tax rules provide little incentive to shift investment gains to IRAs and SEP-IRAs by using undervalued assets, and highlighted current law’s fair market value standard for valuing assets contributed to IRAs.</p>
