IRS official urges additional action to curb offshore tax abuse

Steve Miller, enforcement commissioner at the IRS, told senators on Thursday that tax revenue is still being lost offshore despite recent attempts by Congress to end the practice. 

Miller urged lawmakers to pass legislation that would make it harder for taxpayers to transfer intangible property offshore and deny companies the ability to deduct reinsurance premiums paid to foreign affiliates. 

"I think they will help, in terms of the shifting of income overseas and they will help in terms of our largest business taxpayers shifting to a low tax jurisdiction and escape U.S. tax," Miller said. 

The commissioner's position will likely incite a corporate lobbying blitz to keep these tax breaks from being repealed.

Miller's comments came during a Senate Finance Committee on the current tax filing season, which ends today for individuals.

Senate Finance Chairman Max Baucus (D-Mont.) appeared agnostic to Miller's request. But he pressed him to do more to stop offshore tax cheats.  

"I urge you to be more aggressive," Baucus told Miller. 

The Finance Committee does an annual review of IRS compliance. 

Baucus intends to break that cycle by calling the IRS back to the witness table before April 15, 2011 so the agency can update him on its most recent effort to clamp down on tax cheats.