Skip to primary navigation Skip to main content

Compliance with Tax Limits on Mutual Fund Commodity Speculation

Permanent Subcommittee on Investigations

Location: Room 342, Dirksen Senate Office Building

Open in New Window

Member Statements


The Permanent Subcommittee on Investigations held a hearing, "Compliance with Tax Limits on Mutual Fund Commodity Speculation," on Thursday, January 26, 2012. 

The Subcommittee hearing examined the issuance of over 70 private letter rulings by the Internal Revenue Service allowing mutual funds to make unlimited indirect investments in commodities through controlled foreign subsidiaries or commodity-linked notes, despite longstanding statutory restrictions on mutual fund investments in commodities.  Hearing witnesses included IRS Commissioner Douglas H. Shulman and Department of the Treasury Acting Assistant Secretary for Tax Policy Emily McMahon.