Shulman Defends IRS Position on Mutual Fund Commodities Investments

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IRS Commissioner Shulman refuses to condemn mutual funds for using offshore entities to avoid U.S. tax rules governing investments in commodities, saying he disagrees with senators that the actions were akin to other types of tax avoidance that the agency has been aggressively trying to end. In testimony to the Senate Permanent Subcommittee on Investigations, Shulman dismisses senators' suggestions that mutual funds were engaging in tax avoidance and is reluctant to answer questions about whether there was a non-tax purpose for the offshore arrangements.