Dear Mr. Commissioner:
As pressure mounts to address extraordinarily high gas prices that consumers are facing at the pump, we feel we should better understand the federal tax posture of the industry. Pursuant to Internal Revenue Code section 6103(f)(1) and (f)(4)(A), we would like 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.
While our review of the Federal taxes paid by these companies will be comprehensive, we would initially like to see consolidated Forms 1120 (the U.S. corporate income tax return), 1118 (Foreign tax credits-corporations), 5471 (Information with respect to certain controlled foreign corporations), 6765 (Credit for increasing research activities), Schedule M-3 (Net income (loss) reconciliation for corporations with total assets of $10 million or more), if applicable during those years, and any supplementary schedules, statements, or attachments to any of the foregoing.Pursuant to Internal Revenue Code section 6103(f)(4)(A), the Chairman hereby designates {staff names redacted} as authorized to receive and inspect tax returns and return information with regard to this request.
If you have any questions, please do not hesitate to contact us. We look forward to receiving this information in a timely manner.
Sincerely yours,
Charles E. Grassley
Chairman
Max Baucus Ranking Member
