June 22,2005

Baucus Responds to Press Report on Draft Finance APA Report

(WASHINGTON, D.C.) Today, U.S. Senator Max Baucus issued the followingstatement regarding today’s Tax Analysts press report on the draft Finance Committeestaff report on the Internal Revenue Service’s Advance Pricing Agreement (APA)Program.

“The release of selected portions of a draft staff report is regrettable and does notaccurately reflect the entirety of the report. The Senate Finance Committee launched asubstantive review of the IRS’s advance pricing agreement program in December 2003.

The purpose of the review is to determine whether the APA program is an effective toolfor administrating transfer pricing rules and for making recommendations to strengthenthe program. I encourage interested parties to wait and review the full report beforedrawing any conclusions about the APA program.”