The I.R.S. says that Bristol Myers Squibb, America’s second-largest drug company, has engaged a tax-shelter setup that has deprived the United States of $1.4 billion in tax revenue.

The Biden administration is looking to put an end to such practices to pay for its policy ambitions, including infrastructure like improving roads and bridges and revitalizing cities.

We look at the structure of these tax arrangements and explore how, and whether, it’s possible to clamp down on them. 

Guest: Jesse Drucker, an investigative reporter on the Business desk for The New York Times.

Sign up here to get The Daily in your inbox each morning. And for an exclusive look at how the biggest stories on our show come together, subscribe to our newsletter. 

Background reading: 

• The I.R.S. says that Bristol Myers Squibb used an “abusive” offshore setup to avoid $1.4 billion in federal taxes.
• In a speech to the Chicago Council on Global Affairs, Treasury Secretary Janet Yellen made the case for a global minimum corporate tax rate, kicking off the Biden administration’s effort to help raise revenue in the United States. 

For more information on today’s episode, visit 

nytimes.com/thedaily

. Transcripts of each episode will be made available by the next workday.