We address the I.R.S.’s latest attempt to shut down schemes to avoid U.S. taxation by cracking down on what some may have considered a loop-hole under applicable partnership rules. In Notice 2015-54, 2015-34 IRB 210 (8/06/2015), the I.R.S. announced that it intends to issue regulations that would change the nonrecognition rules on certain property contributions to partnerships and L.L.C.’s with foreign partners. The new regulations would require that income or gain attributable to property be taken into account by the U.S. transferor, either immediately or periodically. Regulations would also be issued under §§482 and 6662 of the Internal Revenue Code (the Code) that apply to controlled transactions involving partnerships to ensure appropriate valuation of such transactions.