IRS' administration of the Crude Oil Windfall Profit Tax Act of 1980

Technical Report · Mon Jun 18 04:00:00 EDT 1984

OSTI ID:6567999

Bowsher, C A

Anticipating that the removal of oil controls would significantly increase the oil industry's profits, the Congress enacted the Crude Oil Windfall Profit Tax Act of 1980. Under the act, oil producers pay a tax on the difference between the free market price of a barrel of oil and its controlled selling price under Department of Energy regulations. Although IRS received no supplemental funding to administer the tax, it moved quickly to establish a compliance program. So that it can further strengthen this program, GAO recommends that IRS develop a more effective means for deciding which properties containing oil wells should be subject to IRS examination; ensuring that the windfall profit tax was in fact assessed on the initial sale of oil subsequently resold many times; and examining tax refund claims based on the very complex section of the law which is designed to assure that the tax is levied only on barrels of oils which, when sold, yield a profit to the seller. The Congress, Treasury, and IRS have improved the administration of the windfall profit tax by defining key terms involved in calculating the tax. To further facilitate windfall profit tax administration, however, the Congress should consider streamlining procedures for issuing tax due notices and appealing IRS decisions to the courts. Treasury and IRS generally agreed with GAO's conclusions and recommendations. 1 figure, 1 table.

• Research Organization: General Accounting Office, Washington, DC (USA). Office of the Comptroller General
• OSTI ID: 6567999
• Report Number(s): GAO/GGD-84-15; ON: TI84901897
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002 -- Energy Planning & Policy-- Petroleum
COMPLIANCE
INDUSTRY
LEGISLATION
NATIONAL ORGANIZATIONS
PETROLEUM INDUSTRY
RECOMMENDATIONS
TAXES
US DEPARTMENT OF TREASURY
US GAO
US IRS
US ORGANIZATIONS
WINDFALL PROFITS TAX