Since 1982, around 45 companies have reincorporated in foreign countries to dodge expensive U.S. taxes, according to Bloomberg News. Fourteen of those companies moved away from America since 2012. It's called inversion. It occurs when an American company reincorporates itself in another nation, not because of lower operating costs or to push into foreign markets, but solely to escape U.S. taxes. Noticing the recent uptick in inversions, The Treasury Department may intend to pass legislation that would curtail the questionable business practice.

According to a separate Bloomberg article, proposed measures would have the biggest effect on not just companies planning to invert, but other big businesses that have already completed inversion deals. Companies with pending inversion plans include Burger King, Mylan, AbbVie Inc. and five other entities, which have proposed moving to low tax regions such as Jersey, Iceland, Canada and other countries. The source also noted that Ireland has become a popular country for businesses seeking to invert. Ireland currently hosts seven inverted companies with three more planning to move to the nation.

Treasury Secretary Jacob Lew has already begun looking into ways to make companies think twice before attempting to obtain a foreign address to escape U.S. taxes while keeping executives and a majority of their operations within America. Moreover, Lew has already announced some plans that may change company's inversion plans.

"This action will significantly diminish the ability of inverted companies to escape U.S. taxation," Lew said in a press release. "For some companies considering deals, today's action will mean that inversions no longer make economic sense."

The most significant measure proposed by the administration involved a domestic tax requirement for companies held by 80 percent or more American shareholders. The administration wants to drop that requirement to 50 percent, effectively requiring any company whose shares are held by a majority of American individuals to pay U.S. taxes. The move would require legislation that has not yet been proposed.