Senior Senators Demand Tax Data On Large Oil And Gas Firms

by Leroy Baker, Tax-News.com, New York

28 April 2006

As the outcry over the massive profits being earned by oil firms escalates, US Senators Chuck Grassley (R-Iowa) and Max Baucus (D-Mont), Chairman and Ranking Member of the tax-writing Senate Finance Committee, are asking the Internal Revenue Service to provide tax and financial information on the nation’s largest oil and gas companies.

With gas prices topping $3 per gallon in many regions of America and many businesses feeling the harsh economic pinch of high energy prices, Grassley and Baucus now feel the time is right for a comprehensive review of Federal taxes paid by oil and gas companies on their record profits.

"We’re seeing record profits and significant executive compensation in the oil and gas industry,” commented Grassley.

“We all know there can be a slip between cup and lip on corporate profits made and taxes paid. I want to make sure the oil companies aren’t taking a speed pass by the tax man."

In a letter to IRS Commissioner Mark W. Everson, the Senators have requested to inspect the annual federal corporate income tax returns for the last five years of the largest 15 oil and gas companies, based on sales.

"Recent press articles have highlighted the industry’s record profits, as well as an extremely lucrative retirement plan by one oil and gas industry executive, benefits which may have been subsidized in part by the taxpayers," the Senators wrote.

Baucus observed:

“The whole country is trying to figure out what should be done about record high gasoline prices at a time of record oil company profits."

“It’s relevant to know what the real financial picture is for this industry, because the financial picture for American consumers is pretty bleak."

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