THE LEDE: Senators are prepared to grill senior Apple executives, including CEO Tim Cook, at a hearing on the company's tax practices on Tuesday morning.

A report released on Monday by the Senate Permanent Subcommittee on Investigations found that Apple has avoided billions of dollars in taxes in recent years through a network of shell companies, many based in Ireland.

By exploiting a difference in U.S. and Irish tax law, Apple was able to avoid paying taxes to any government on billions of dollars in income, the report found.

But the company's executives plan to push back on any accusation of wrongdoing at Tuesday's hearing.

In Apple's prepared testimony, the company denied that it is improperly hiding its assets overseas or that it is using “tax gimmicks.”

"Apple complies fully with both the laws and spirit of the laws," the company said.

Time is running out for Sen. Orrin Hatch (R-Utah) and Charles Schumer (D-N.Y.) to reach a compromise on the amendments.

“Apple sought the Holy Grail of tax avoidance,” said Sen. Carl Levin (D-Mich.).

The Association for Competitive Technology has flown 50 chief executives of mobile app development companies to Washington this week to press for immigration reform and improvements to the country's math and science education programs.
 
The chief executives of these small- and medium-sized mobile app companies will hold nearly 150 meetings with lawmakers, Hill staffers and the administration on Monday and Tuesday to discuss the Gang of Eight's immigration bill and forthcoming immigration reform legislation in the House. The executives hail from around the country.

The trade group's fly-in trip comes as both chambers of Congress are debating comprehensive immigration reform and changes to the immigration rules for hiring foreign highly skilled and educated workers. The Senate Judiciary Committee, which oversees immigration issues, is aiming to finish marking up the Gang of Eight's bill by mid-week.

Morgan Reed, executive director of the Association for Competitive Technology (ACT) said passing immigration reform is critical for small companies that are competing with larger tech giants for talent and lack large human resources and legal teams to help them sift through new regulations. 

Mignon Clyburn became the first woman to lead the Federal Communications Commission (FCC) on Monday.

But her tenure will be short-lived, as she is only serving as acting chairwoman until the Senate confirms the president's nominee, Tom Wheeler.

Chairman Julius Genachowski stepped down on Friday after four years leading the agency.

The labor federation is rallying opposition to a series of tech industry-backed amendments from Sen. Orrin Hatch

China is renewing its cyberattacks on U.S. targets despite the Obama administration's public warning to cease and desist, The New York Times reports.

A report from the private sector Mandiant for the Times found that the cyberunit of the People’s Liberation Army has resumed its attacks on U.S. companies and government agencies after going silent for the past three months amid heightened U.S. criticism. The report suggests the United States will have to exercise continued pressure for the attacks to abate. 

“This is something we are going to have to come back at time and again with the Chinese leadership,” a senior administration official told the Times, because they “have to be convinced there is a real cost to this kind of activity.”

Three top Apple executives, including chief executive Tim Cook, are heading to Capitol Hill on Tuesday to testify at a Senate hearing on offshore profit shifting.

Apple has a reputation for avoiding Washington and, unlike Google and Facebook, does not have a significant lobbying presence in the capital. But the Cupertino, Calif.-based company is shirking tradition in a big way by having three of its most senior executives testify before lawmakers.

Apple's Chief Financial Officer Peter Oppenheimer and Phillip Bullock, who heads up the company's tax operations, will join Cook on the witness panel. It will be Cook's debut testimony before Congress and will come at a hearing of the Senate Homeland Security subcommittee on investigations.

Yahoo CEO Marissa Mayer announced that her company has bought Tumblr.

Chinese hackers have resumed their attacks on U.S. computer systems, The New York Times reports. 

Europe cited China's Huawei and ZTE for trade violations, according to Reuters. 

The CEO of The Associated Press called the government's seizure of his organization's phone records unconstitutional, the AP writes. 

Federal officials searched a Fox News reporter's emails after obtaining a warrant, The Washington Post reports.