INTERNAL REVENUE SERVICE 1986 ANNUAL REPORT
The Commissioner's and Chief

Counsel's Annual Report is produced

by the Office of Public Affairs, Room

1112, Internal Revenue Service, 1111

Constitution Ave., NAV, Washington, D .C. 20224 .

The report is available from the

Superintendent of Documents, US .

Government printing Office,

Washington,D .C . 20402 .

NOTE :

Statistical data used in the text and

tables of this volume are on a fiscal

year basis, unless otherwise noted . For

example, data headed "1986" pertain

to the fiscal vear ended Sept . 30,

1986 .

Graphs, charts and text figures have

been rounded and may not compute

precisely compared to the statistical

tables, which are based on unrounded

figures . I

INTERNAL REVENUE SERVICE 1986 ANNUAL REPORT I
TABLE OF CONTENTS

INTRODUCTION 4 .

COLLECTING THE REVENUE 8

Returns Received 8

Tax Receipts S

Refunds 8

Electronic Filing 9

Master File 9

Earned Income Credit 9

Penalties and I nterest 11

Presidential Election Campaign

Fund 1 1

Contributions to Reduce the

Public Debt 1 1

Tax Refund Offset Program 1 1

ASSISTING THE TAXPAYER 12

Write, Call or Walk In 14

Telephone Assistance 1 4

Walk-in Service 14

Disaster Assistance 14

Taxpayer Education 14

Taxpayer Information 15

Forms and Publications 15

Problem Resolution Program 15

ENFORCING THE LAW 16

Examination Results 16

Automated Examination

Svstem 1 7

Information Returns Program 17

Engineering Program 1 7

Return Preparer Program 17

Computer Assisted Audit Program

and Statistical Sampling 1 7

Coordinated Examination 18

Abusive Tax Shelters 18

Illegal Tax Protesters 19

Criminal Investigation 19

Bank Secrecy Act 19

Questionable Refund Program 19

Organized Crime Dru g

Enforcement Task Forces 19

Collection 2 0

Automated Collection System 20

Workload Priority and Selection

System 2 0

Service Center Collection Branch 20

International 20

Employee Plans 22

Exempt Organizations 2 2

MANAGING THE SYSTEM 23

Tax System Redesign 23

LaserTechnology 23

Automated Underreporter 24

Review of Administrative

Functions 2 4

Space Management 24

Payroll Improvement 24

Training and Recruitment 24

Strategic Management System 24

Research 25

The Tax Gap and Compliance 25

Computer Services 25

Inspection 25

Internal Security 26

Internal Audit 26

Integrity Program 27

Productivity Improvement 27

Cash Management 28

Statistics of Income 28

Director of Practice 28

Legislative Affairs 2 8

Commitment to Quality Service 29

Equal Employment Opportunity 29

CHIEF COUNSEL 3 0

The Office of Chief Counsel 30

Tax Reform Legislation 30

International Issues 30

Revenue Rulings and Revenue

Procedures 3 1

Private Letter Rulings and

Technical Advice Requests 31

Administrative Appeals 31

Management Initiatives 32

Case Management 3 2

Continuing Professional Education 33

Academic Internships and

Externships 3 4

Regulations 34

Litigation 34

Industry Specialization Program 34

Special Trial Attorneys 34

Employee Plans 3 4

Abusive Tax Shelters 35

Litigation Initiatives 36

General Legal Services 3 6

STATISTICAL TABLES 3 7

OFFICIALS 66

Commissioners of Internal

Revenue 6 6

Acting Commissioners 67

Principal Officers 67

Chief Counsel 7 1

Acting Chief Counsel 71

Principal Officers 7 2

INTERNAL REVENUE SERVICE

ORGANIZATION CHART 74

INTERNAL REVENUE SERVICE

MAP (Regions, Districts and Service

Centers ; Chief Counsel Regional and

District Offices) 7 5

INDIA 76
Z

4

INTRODUCTION

1986 was a watershed year for our

federal tax system in the United

States . The passage of a new tax law

that will rename and restructure our

tax code challenges all of us

- taxpayers, practitioners, and tax admirristrators. More importantly, the new law

holds out the promise of a fairer, more

rational tax system .

The Internal Revenue Service spent

the eariv part of 1986 advising Congress al~out the administrability of

proposed sections of the law. Our tax

reform agenda for the latter part of

the year included : gearing up to implement the changes in the law that

were effective before year's end, setting a course to handle the numerous

changes to come, and launching a

massive public education effor

L

We are trying to anticipate all the

changes that may be necessary to

implment such a comprehensive new

law. We are confident that during the

transition most of the adjustments and

disruptions will be ternporary

~

In terms of our administration of

the tax system, 1986 had some standout achievements:

• A virtually flawless filing season and

the successful introduction of an

electronic filing pilot project; • The delivery to revenue agents of

portable computers that are revolutionizing the Services auditing techniques ; and

• The creation of a new office for

international tax matters that

greatly streamlines our operations

and givesa

new status to an increasingiy important part of tax administration . .

But beyond Lax reform developments and breaking new ground with

some exciting programs, 1986 was a

year when we asked ourselves some

basic questions about our on-the-job

performance. We asked not if taxpayers are delivering to us but if we are

delivering to them .

Those who pay their fair share want

to be sure that we will collect the

taxes owed by those who do not.

Fqualiv important, however, all taxpayers want to believe that in collecting taxes, we will treat them fairly and

respectfully.

Z, 'ZQ, . w~~ ~ a, k ~., s " ~_ " x ~al. ~

This annual report, therefore, marks This means learning to think in new

the renewal (if our organization's com- way about ourselves, about our orga s .

mitment to the delivery of quality nization, about taxpayers and their

service to taxpayers. In reading the advisers. Making the transition isn't

narrative and checking the statistical easy but we are learning some intercharts, we suggest that you read be. esting lessons along the way.

tween the lines. The real story about The most important lesson is that

1986 won't he found in the numerical today's taxpayers want the same thing

results of programs but rather in our taxpayers have always wanted-qualdecision to take stock of ourselves as ity service . And delivering quality

an organization and ask some tough service means concentrating on some

questions. old-fashioned values-paying attention

Are taxpayers being adequately to details, doing things right the firs

t

informed about their responsibilities time, speaking to people in language

under the law? Are We answering they can understand, being receptive

their questions quickly, correctly, and to new and better ways of doing busiin non-technical language? When a ness.

mistake or problem occurs, do we No part of our organization is more

address it courteously and solve it important to delivering quality taxpromptly? payer service than our attorneys .

Taxpayer support for our agency's Since the responsibility for writing the

mission is critical to the success of rules and regulations associated with

that mission . But taxpayers can't,com- tax reform Tests primarily with our

ply if they dont know what's expected attorneys, the quality of their performof them . And taxpayers may be less ance is crucial to the public's underwilling to comply if they believe the standing of its obligations under the

system is unfair, unresponsive, or un- I aw.

enforced. In addition to a very full tax reform

Our Lax system is based on an un- agenda, OUT attorneys have been workwritten contract between the Internal ing on some novel approaches to their

Revenue Service and taxpayers . In traditional business of litigating cases.

order to pay tire costs of living in a *They have been exploring ways to

civilized society, taxpayers agree to focus their legal expertise on the

voluntarily compute and pay their more significant cases, those cases

taxes. But they expect something that raise major policy issues or inmore personal in return. That per. volve large amounts of tax dollar assonal "something" is the confidence sessments .

that as they try to comply with their This year we began to review our

tax obligations, they will be treated counsel's role in our tax compliance

professionally, with dignity and re . process. Traditionally, an IRS agent or Speer . appeals officer has relied on counsel

As we strive to improve our cus- for legal advice on a very small pertomer service, automation continues centage of their cases. Usually these

to break down the lines that separate cases either involved larger dolla

r

our different functions. We can no issues with a legal question pending or

longer afford to think of ourselves in a unique technical or legal issue . We

narrow terms-as examination special- are exploring whether there are new

ists, or collectors of overdue tax, or and additional areas or ways that our

processors of tax returns. We are counsel could be helpful to us in delearning to put ourjobs in perspec- veloping our more specialized cases .

tive, to think about where we fit into

the tax system as a whole and how we

can better work together to serve the

public .

Our attorneys also are reviewing

various ways to reduce their inercas.

ing inventory of tax shelter cases . We

are not considerift cancelling taxpay .

ers' tax shelter debts. We are investi .

gating ways to handle our casework

more efficiently. Our refined methods

of analyzing cases make it possible to

predict the ultimate monetary settle .

ment that we can expect from a case . Were exploring ways to obtain the

same dollar results but settle cases

earlier in the process.

Annual reports record important

facts and figures about an organization . But long after we forget the facts

and figures that distinguish one year

from another, we remember the exceptional people . Our confidence in

our ability to do our job-now and in

the future-is built on confidence in

our people. They are our most impor.

tant and precious asset . Throughout

this annual report are snapshots of

some IRS people who make a positive

difference in our business of tax ad .

ministration .

We are featuring two executivesDick Wassenaar, assistant commis .

sioner, criminal investigation, and Tom

Laycock . assistant commissioner, computer services-who dedicated their

professional lives to the IRS and died

at the height of their careers . They are

remembered in a special way not

because they were executives of our

agency but because they exemplified

all the best characteristics of an IRS

professional .

They both knew what it meant to

work their way up from the bottom .

They related well to people-taxpay.

ers, practitioners, and IRS employees

at all levels of our organization . In

refusing to settle for second best, they

set a high standard of performance .

Their competence, personal integrity,

and leadership madea lasting impres.

sion on all of us . We shall miss them

as friends and colleagues .

Lawrence B . Gibbs,

Commissioner William F. Nelson,

Chief Counsel
6

RICHARD

C. WASSENAA

R

Dick Wassenaar's career with the

Internal Revenue Service began as a

criminal investigator in Chicago in

1963 . He quickly rose to the supervisory level and participated in one of

the most significant political corruption investigations ever undertaken by

the Service-a cooperative venture

with the

U.S. attorney's office in which

a number of local politicians and businessmen were prosecuted.

lie rose through the ranks, accepting posts of growing responsibility,

mostly on the West Coast. When the

IRS created the office of assistant

commissioner, criminal investigation,

in 1982, he was the first person choscn for the job .

Throughout his career he stressed

the professionalism required of a

successful criminal investigator. lie

expanded the use of undercover investigations, search warrants and computers, earning for the IRS a

government wide reputation for hardnosed, professional financial investigating and fair, but aggressive,

enforcement of the nations tax statutes. His reputation extended into the

legal profession, and he received a

special award from the American Bar

Association in 1986 for his outstanding contributions in strengthening

relationships between the Bar Association and the IRS in criminal tax enforcement activities.

THOMAS J. LAYCOC

K

Thar Laycock came to the Internal

Revenue Service over thirty years ago

as a tabulating-machine operator in

his hometown of Lawrence, Massachusetts. He became a supervisor shortlv

afterwards, just as the IRS was taking

its first steps towards- automation . His

career rise paralleled the development

of the complex systems needed to

keep pace with the growing size and

complexity of the American tax struc

.

ture. He made major contributions

towards that process throughout his

career.

After assuming the position of

assistant commissioner, computer

services, in 1983, Tom began a major

revamping of the automated data proc .

essing system, aiming to improve the

quality of data processing operations

throughout the Service. Many of those

improvements will remain in place

past the end of the century.

Tom received the Presidential Rank

Award of a Meritorious Executive in

1981, and the Commissioner's Award,

the highest IRS honor, in 1986 for his

accomplishments in tax administration. I
COLLECTING

THE REVENUE

Service to taxpayers means many

things, among Which tile efficient

and timely processing Qftax returns

and refunds ranks high . In 1986 tile

IRS processed record numbers of

tax returns. and collected more

than $782 billion in. taxes, another

record. Tile service also tested

clectronieffling ofindividual tax

returns for the first time . Based on

tile successful results of this initial

experiment. plansfior 1987 include

expanded tests of electronic filing.

RETURNS RECEIVED

IRS service centers processed 188

million federal tax returns and supplemental documents in 1986 for a 5.5

pereent'inerease over the 178 .2 million processed in 1985.

Over 85 .1 million, or 45 .3 percent

of all returns received, were individual

tax returns forms 1040 and 1040A .

More than 17 million individual =-

payers - 16 .6 percent of all individual

filers - used the simplified Form

1040EZ, compared cc nearly 16 .7

million in 1985, a rise of 1 .8 percent .

The number of individual taxpayers

filing Form 1040 increased 4 .5 percent from 63.8 million to 66 .7 million

this year. (See statistical table 6for

details.)

Stopping errors before they occurred was the emphasis in the returns processing program in 1986.

"Quality improvement teams" of managers from several areas reviewed the

operation as well as the end product .

The Service also put in place a

method for spotting more quickly any

procedures, instructions or other problems with the system itself that might

be causing errors . Giving managers

the information they need to correct

these systernic proble

ms

helps do

away with these types of errors.

TAX RECEIPTS

Gross revenue receipts, up 5 .3 percent

over 1985, rose to $782 .3 billion this

year; an increase of $39.4 billion. Individual and corporation ine6me tax

collections accounted for ilmost twothirds of the total receipts. Individual

tax receipts totaled $416.6 billion, an

increase of 5 percent over last v at.

Corporation tax receipts rose 3 .9 percent to $80.4 billion .

Employment taxes (.social security,

self-employment, .federal unemplrj~,

ment and railroad retirement),

which were 31 .2 percent of the total

revenue, hit $244 .4 billion, another

record high for more than five years

in a row.

Excise taxes totaled $33 .7 billion, a

decrease of 9 percent compared to

last year. (See statistical tables 1, 2

and 3jor details .)

REFUNDS

In 1986 IRS issued 77.9 million

refunds totaling $94 .4 billion compared to 80.1 million refunds in the

amount of $86.3 billion in 1985 . Over

74 .2 million individuals receive d

$72 * 9 billion, including $469 million

in interest this year As of the end of

September 1986, IRS had issued refunds with interest on 3 million cutrent-year individual income tax

returns timely filed but not refunded

during the statutory interest-free period compared to 2 .1 million last year.

Individual refunds this year averaged

$982 compared to an average of $866

in 1985 . (For details, see tables 4

and 5.)

,~,juc Qf naturn

NUMBER OF RETURNS Grand total

FILEP BYPPJNCIPAL

TYPE OF RETURIN mf7~idum l

(Figures in thousands.

For details see

statistical table 6. )

ELECTRONIC FILIN G

The processing of paper documents is

a highly manual, time consuming

activity : opening envelopes, sorting

forms, assigning codes and, finally,

entering data on computer terminals

- and all . 1)), hand .

In 1986 IRS tested a process that

bypasses the costly paper operation

by accepting returns from the computers of qualifying tax preparation

firms directly into the system . With

the number of tax returns prepared by

computers estimated to be about 13

million and growing rapidly, electronic

filing seems to Promise faster, more

accurate service to the taxpayer and

dramatic savings to the government .

Five tax firms in the metropolitan

areas of Cincinnati, Phoenix and three

North Carolina cities showed interest

and met the requirements for sending

data over telephone wires to the Cin,

cinnati Service Center, the center

chosen for the test . They transmitted about 25,000 individual income tax

forms in the 1986 Pilot test. The

Declaration of estimated tax

Fid.ci.-

Partnenhi p

Corporation

Estate ta x

Gift ta x

Employment tax

Exemin organimlions

Employ- plans

Alcohol. tobacco and firearon ,

Excise tax

SuPplemental documents I

Non-master file ratu .W

9

19S5 1986

178.219 188.01 7

140.724 145.69 6

99 .426 1012 .39 3

34 .225 35.48 5

2 .053 2.30 5

1 .717 1 .84 5

3 .303 3.66 7

77 72

95 103

'6.8'4 27.92 1

431 4S 7

644 22, 1 4 2

397 520

796 1 .265

8.19S 9.795

71 17

MAS7ER FILE

The master file is a collection of all

IRS accounts for individual taxpayers

and for businesses, and it is stored at

the National Computer Center (NCC)

in Martinsburg, NXIest Virginia . Each of

the ten service centers transfers ac.

count information to the center on a

weekly basis. The number of taxpayer

accounts on the individual master file

grew to 139 million by the end of

September 1986. an increase of 4 .5

percent from last year's figure. For the

same period the number ofaccounts

on the business master file numbered

26 .8 million, an increase of 3 .5 per.

cent . The National Computer Center

processed 669.1 million changes to

the master file during the year, a de.

crease of 1 .1 million .

'Includes Forms 1040X, 112OX, 1-688,4868,7004,

7005 and 1041A .

' lri .iud .~ Forms 9431, 941141,11, CT-2,990BL. 6069.

1042,1120 DISC. 1120 IC DISC, 1120FSC AND 8404 .

streamlined processing permitted IRS

to issue refunds to 94 percent of electronic filcr~ in a matter of 314 weeks;

had the same taxpayers filed paper

documents, settlement would have

been three to five weeks later Only

three percent of the computer-filed

returns had processing errors, compared to 21 percent with the paper

ones .

IRS is expanding electronic filing in

1987 to seven sites - one in each

region - and has increased the num.

ber of tax forms and schedules filed

electronically from nine to twenty.

Taxpayers filing clectronically in the

three original test cities may choose

to have their refunds posted with their

financial institution by electronic

transfer. A separate test in the An.

dover Service Center will focus on

electronic filing of some business

returns . Once the system is fully in

place in the early 1990's, possibly

more than 30 million taxpayers a

year may choose to file returns

electronically.

EARNED INCOME CREDIT

Low income taxpayers who keep a

home for themselves and at least one

dependent may claim the earned in .

come credit. And taxpayers who qual .

ify for the credit may choose to get it

in their paychecks in the form of advance payments during the year,

rather than wait and file for it on their

tax returns after the year is over. In

1986, 6 .2 million taxpayers claimed a

total of $2 billion, of which 9 1 .7 bil.

lion had been claimed in advance

payments .

Gross receipts

rose to

$782 .3 billion.
10 ~dul; C m

NET INTERNAL

REVENUE

COLLECTIONS

(in thousands of

d,llan-.)

GRO,SSINTERNAL

REVENUE

COLLECTIONS

(in thousands of

dollars. For details see

statistical table 1 .)

Grand total

Source

Corporation income taxes

Individual income taxcs ~

Employment taxes. total

63 .5

Old-itge, sm-viv-'s . di .bility and hospital i . .. -ove 234.879,73S 736 .900 234 .142.838 34.

Railroad retiremen t

Umunplo-ent imm-, .

Estate an d gift taxes

E . .i- to.-

Does not include interest paid on refunds. In the

narrative, the total refund figure of $94 .4 billi m .

eludes $1 .8 million of interest.

! Refunds of Forms 1040, 1040A AND 1040EZ mclud

mg withheld -.a, in.s PICA.

Source

Grand tota l

Imsorm, tax.. total

Corporation

Individual . total

10 .3

Cruss

Collectiona Rqfimd.' Amount Qftmal

961 100 .0 782 .251 .SI2 92.600 .851 689 .650,

80 ' .441,620 17.29S .313 63 .143~307 9 .2

416.568.384 73 .286 .5662 343 .281 .817 49 .8

244 .374,767 990 .361 243,384.407 35 .3

3,833.640 6,243 3.827.397 0.6-

5 .661.389 247 .218 5.414,171 0.8

-

7,194 .956 237 .329 6,957,626 1 .0 -

33 .672 .086

I Does not include an aciJustment made by the Depart

mem of the Treasury after our books were closed to

increase "Individual income wes withheld by employ .

ers" and correspondingly decrease "Unemployment

ins... .

.. .. by $396,387,000 .

I

.-cor d--

474.072,327 497.010.003 22.937 .676 4 .8

77 .412 .769 80,441 .620 3.028.850 3 .9

Net Collections

Percen t

788.282 32 .883 .804 4.6

-

1986 Amount Pertsen t

53 .3 396,659 .558- 416 .568 .384 19.908.826 5 .13

Withheld by empioy-3 40.2

Other' 13.1

298 .975,3711 314 .441 .95311 15,466.582 5.~2

97 .684 .187

-

102 .126 .431 4,442,244 4.5

244 .374 .767 19 .160,200 8 .5

Employment taxes, tatall 31 . 2

Old-age, survivor's. disability and

hospital insurance. total 30 .0

Federal insurance contributions 28 .0

Self-ployment insurance

contributions

Unemployment insurance

Railroad retirement

Botate md Aift taxes

FAcise Mca. toud

Alcohol

Tobacco

Other

2 .0

0.7

O. S

0. 9

-4. 3

0. 7

0 .6

1 .0

Includes presidential election campaign fund amount

ing to $34,787,755.

' Includes presidential

-

election campaign fund amount .

ing to $35 .933,481 .

~ Estimated collections of individual income = with

held are not reported separately from old age, sumivor's, disability and hospital insurance (OASDHI) cases

on wages and salaries. Similarly, collections of individ

us] income = not withheld are combined with OAS

DID =es on self-employment income. The amount of

OASDHI = collections shown is hased on estimate

,

100 .0 742,871.541 782.251,812 39.380.27 1

Percent of 1986

ecAleetirms 198.5

1-25,214,568

215,590.990 234,879.738 _19,288 .748 8 .2

201 .492,708 219,171 .256 17 .678,548 8.8

14 .098 .282 15,70S.482 1,610,200 1 LL

5 .671 .797 5.661.3891 (10.407) -0. 2

3 .951 .78 1

6,579 .703

3 .833,640 (LIS.141) -30

7 .194,956 615,253 9. 4

37.004.944 33 .672,086 -11 0

5.398,100 S,647 .485 249 .385 4.6

4.483.193 4.607 .945 124 .652 2

27.123 .651 23,416.756 (3,706.895) -13 .7

made by the Secretary of the Treasury pursuant to the

provisions of section 201(a) of the Social Security Act

as amended and includes 01 OASDIII m.

. The

estimates shown for the two categories of individual

income =as were derived by subtracting the OAS,

DID tax estimates from the combined totals reported.

~ Does not include an adjustment made by the Depart.

ment of the Treasury after our books were closed to

increase "Individual income -es withheld by employ

ers" and correspondingly decrease "Unemployment

insurance" by $396,387,000 .

The Service

issued 77.9

million refunds,

totaling

$94.4 billion.

PENALTIES AND INTEREST

By law IRS must charge penalties for

certain infractions such as failure to

file' returns or make timely payments,

payment with bad checks, negligence,

false withholding statements and

fraud, unless there are extenuating

Circumstances. The law also gives IRS

the authority to charge interest on late

Payments and to cancel or lower an

interest charge when it is not justified.

In 1986 18.6 million penalties Were

imposed totaling $3 .5 billion . Of

these, 10.3 million penalties were

imposed on individuals, for a total of

$1 .8 billion, and 8 .3 million on business returns, totaling S 1 .7 billion .

Penalties may be abated when a tax.

Payer Can show just cause that the

Penalty should not have been im .

posed in the first place . Interest

Charges totaled 83.5 billion on individ .

Ual returns, with reductions of $435 .6

Million . Interest charged to business

returns totaled $7 billion, lowered by

$2.4 billion when necessarv. Gener.

ally, the IRS may not reduce interest

due on taxes Owed, but in cases where

interest is not justified, it may be low.

ered or canceled as appropriate.

PRESIDENTIAL ELECTION

CAMPAIGN FUN D

All CitiZens and resident aliens who

Owe at least one dollar in federal in .

come tax may. choose to designate a

dollar from this tax to this fund, estab.

lished in 1972 . In 1986, 23 percent of

the total individual income tax re .

turns, or 23 .9 Million, showed designs .

tions to this fund of $35 .9 million .

The Cumulative amount credited to

the fund since it began in 1972 is

$467.2 million .

CONTRIBUTIONS TO REDUCE

THE PUBLIC DEBT

This was the fourth Year federal tax

forms carried a message inviting tax .

payers to make voluntary contribu.

tions to reduce the public debt. Those

who chose to do so could have Sent

separate checks, payable to the Bureau

of Public Debt with their federal tax

returns and take a deduction on the

next year's Lax return, subject to limi .

tations on charitable deductions. All

funds received go to a Special account

for this purpose . In 1986 there were

1,341 Contributions, totaling 8245,00D

Making the number Of contributions

9,659 and the total Contributed $1 .4

Million.

TAX REFUND OFFSET PROGRAM

If a taXpaVer fails to Make support

payments to a child or spouse who

receives public assistance, Congress

requires the IRS to withhold all or

part of the taxpayer's income tax refund to cover the delinquent pay.

ments . This requirement has been in

effect since 1981 . Starting in 1986, the

requirement now includes applying

individual income tax refund, t~ P.

POrt payments for a child or spous O'ue

who is not On Welfare and to debts

owed to some federal agencies.

Through an agreement with the

Department of Health and Human

Services, IRS acts as Collection agent

for the state welfare agencies in all

child or Spouse support Cases . The

refund amounts reimburse the agen .

cies for the support they furnish

through aid to families 'with depen.

dent children. The state agencies turn

the funds Over to the parents .having

custody of the children in nonwelfare

cases . In 1986, 606,521 refunds Were

offset in the amount of $320 Million

to cover delinquent payments .

Other agreements with the Depart .

ments of Housing and Urban Develop.

ment, Agriculture, and Education, and

the Veterans' and Small Business Ad .

ministrations require the HIS to act as

Collection agent for delinquent federal

debts. Refunds were Offset for this

purpose on 273,327 individual income tax returns in the amount of

$150 million.

uw.

a. , , 7 ej~,ILV'51~~- nke= _Mt,
12

ASSISTING

THE TAXPAYER

7hxl)(kvcr.q have the right to expect

that IRS will provide them with

qualitv assistance in meeting their

obligations and responsibilities

under the ta:v laws. infiling their

returns . in resolving problems and

in getting accurate answcrs to

questions . 111 1986 IRS took steps to

bolster file taxpayer assistance

program with more training. Staff

and resources.

IRS gave

special help to

disaster victims

in 22 states.

8 1

11 9

Tax For.$& Instructions Distrilurted 298.0Million 314.0 Million

Some 59,000 IRS-trained

-volunteers helped with

1.8 million taxpa~yer

returns.

45W 1.3

ASSISTING

TAXI'AYERS

""ite. C-11 or Watk-i .

Total Requests for Assistance

Toll-Frec Telephone 37 .9,%fillion 41 .1 Million,

Account & Problem Resolution 6.2,%Iillion - S.9 Million

Teelone.]

Se-i-e for thc De d

Small Business

Non Toll-Free Telephone .3,%fillion .8'Villi m

Tele-Tax

Automated Res p

Refun d

Outreach

Community Sites

Correspondence

Walk-i n

Permanent Offiec ,

Tax PractitionFiling Season only ]IS

With Foreign Language Assist 114

Libraries, Banks & Postal S-jec 52 .000

Di.-ter Assistance

states

Counties

Cities

T-pa_~er Fdoentiou

Taxpayer Returns Assisted

VITA & TCE Volummm

Students Who Recei-cl Understanding Taxes Material

Workshops

2 2

Ta"3- k(br-ati..

Free Ad-ftising Recei-d $35-OMillion $34.0 Millio n

Material Sent to print ad Electronic News Media 35,0(K) 30.000

Television Clinics

Radio Clinics

Eminnated Viewer s

Institutes

1985

54 .S,ifillimt 5N.9,itillio .

2 .6,Vfilli.,, 2.1 Million

2 .388 2.876

7 .9,11ifli 8 .3 Million

1-5 Million 4.3 Millio n

6 .4Million 4.0 Million

376 .000 4(K) .00 0

S .(XX) 6.60o

2,11 .000 160.000

8.1 Atillion 8 .1 Mill i

345 37 7

52150 0

22 14

250 11 1

58 N/A

1 .8 Million 1 .5,11illi59.000 50.00( )

4 .0bfillicn.

39 .000 39.800

32 .000 37,40o

230 235

Law & Graduate Accounting Schools 22

Newspapers Gi- Tax Supplements 900 900

circulation 23.0,ifillirm 23 .0jifill i

m""o o~;~.q-wm

M.guin. with Public Service Ad ,

Circulation

Ad Valu e

Billbo.rdx

13

4

12.0 Million 10.1 Millio n

4,573 1 .90( )

94.0,%fillion 94.0 Million

04.8 Million $4 .8 Millio n

1 .900 1.90 0

Wamm ietg wy.,
14

WRITE, CALL OR WALK IN

In 1986 employees answering taxpayer inquiries received improved

training to he able to fully respond to

the taxpayers' questions. All personnel

assigned to work on taxpayers' accounts received additional mandonor-y

training on researching and resolving

account~relatcd problems. And all

employees who deal with the public

received, in addition to thL annual

refresher training, a special course on

Communication techniques which not

only stressed courtesy in answering

taxpayers' questions, but also included

training in listening skills. More experienced employees served as coaches

for new employees as they worked

through on-the-job training. With pas .

sage of the Tax Reform Act at the end

of the fiscal year, tax assistors received

training about the provisions of the

new law.

Taxpayers wrote, called or walked

into IRS offices in 1986 with 54 .8

million requests for assistance, compared to 58.9 million in 1985 . There

were more contacts in 1985 than in

3986 primarily because of the out-of.

the-ordinary problems the Service

experienced in 1985 in processing tax

returns . More than 65 percent of the -

1986 total assistance requests occurred between December 29, 1985,

and April 26, 1986 . Quality checks

showed that IRS responses to these

requests had an overall accuracy rate

of 93 percent.

TELEPHONE ASSIS1ANCE

There are three ways to phone the

IRS for assistance : the toll-free system

with trained assistors to answer the

phones for tax information or help

with account problems; Tele-Tax for

either recorded technical tax law in .

formation or the status of the current

year's refund: or a special toll-free

telephone service to order forms and

publications only.

This year Me-Tax doubled the number of telephone lines and the service

became toll-free nationwide . In addition the system can now answer refund inquiries more specifically. For

example, the equipment, a computerbased answering system, can tell the

caller what day the refund was mailed,

whether the tax return in question is

being processed, or that the return -

has been processed. Ifthere is a processing problem, the Ticle-Tox message

advises the caller to contact the IRS

for more information .

Deaf taxpayers throughout the

United States, Puerto Rico and the

Virgin Islands continued to receive

toll-free tax assistance through equipment designed specifically for their

use .

WALK-IN SERVICE

IRS offered walk-in taxpayer assistance in inner city, business district,

suburban and rural locations, in permanent offices and at temporary sites

set up only for the busy period of the

year when taxpayers are filing returns.

Many of the offices offered foreign

:anguage assistance. Some 52,000

ibraries, bar4os; and Postal Service

locations helped IRS distribute more

than 298 million tax forms, instruc .

tions and publications.

DISASTER ASSISTANCE

In 1986 taxpayers in 22 states suffered

losses due to floods, hurricanes, torna~

does and other emergencies and disasters. The IRS offered on-sitc assistance

to the victims by helping to prepare

amended returns for casualty loss

claims so that affected taxpayers could

get refunds as quickly as possible .

TAXPAYER EDUCATION

As in the past years, IRS distributed

Instructional materials to high school

and adult basic education students

through the Understanding 7&ves

program. Recently expanded, the sec.

tion on the economics of taxation now

includes a video/film series of six 15.

minute programs, entitled, Tax W)kvs :

Understanding 74xes. Since 1985,

over 11,000 teachers have been

trained in teaching 7bx Whys.

The Volunteer Income Tax Assistance (VITA) and Tax Counseling for

the Elderly (TGE) programs trained

volunteers to assist low-income, nonEnglish speaking, handicapped and

elderly taxpayers with their federal, 15

state and local to men, and

Supplied other tax materials Place to turn when their previous aX returns . In addition to 8-5 million taxpayers, 230 0oo tax

IRS employees not only traveled to

,

efforts to nesolve a tax problem h local sites through the Communit Practitioners and 500,0oo C e

~P'Oyers failed Outreach TaxA i y, When taxPavers order printed mate . IRS employees themselves"

. identified and referred more than so presenteoltseminars, on a variety S'%'~Stance Program and rialS from IRS*bv phone, the requests Percent of the 545,()Oo of tax go to the newiv-developed Centraliz d Cases handled topics, bu they~ also helped conduct Invento*, and'Distribution Svstem C by this Program this Year The balance workshops for small,business owners which is in the p,,cess of * ' I of the requests came from taxpayers and Participated in tax practitioner automating and tax Practitioners who had hecome institutes. and centralizing forms warehousing

and di aware Stribution, IRS is currently Con Of this specialized service

.

through various TAXPAYER INFORMATION solidating its eight distribution centers Besides handling individual prob sources of publicity.

. across the nation into three straregj. The Service prepares a variety of ma- cally located sites The first faL lem cases, a large Part of the program terials on taxes for both electronic an Alitv i n Richmond, Virgim . has been O'Cat . units to Prevent or correct Systemic print media. IRS Participated in

d

Problems which arise in the tax

television and four radio tax clini

13 tional since October 1985; the second

cs in Bloomington . Illinois, began Opera. system itself. Problem Resolution and Other special Programs nation . tion in October 1986;

the third now

in recommendrajons in 1986 led to a

wide which not only gave viewers Fresno, Callifor-rii Policy for reimbursin g

topical a, will mOve to a new taxpayers for tax information but also al- Sacramento site in July 1987 IRS' .bank Charges resulting from the IRS'

lowed them to Phone in their = distribution centers fill

.

ed app

.

roxi.

incorrect "!vies On taxpayers' bank questions, The service produced in- mately 8.5 million taxpayer . accounts.

orcers, stractional videocassettes and made 1986, gencraliv within 48 hours of in Another recommendation intro~ the m I

,ib av able to the public through receipt of the request. need safeguards into procedures

ra es anu video outlets . Newspa .

pers and other print media across th

e

country receive materials for their

readers from the IRS, among which the tax supplement _ a mult, .Page

Collection of tax information -is the Most significant. In addition the Se,,

ice Publishes drop-in ads, billboards

and bus cards advertising the various

free tax help services the IRS offers to

the public .

FORMS AND PUBI,oCATfONS

In

an

on-loin' IRS ,he effort to improve for.,, and instructions, emplovees

who have this responsibility contiiiiie to meet with professional groups and encourage comments from the general public . This year IRS developed a number of prototype

Tax Reform Act of tax forms as the

1986 Progressed through Congress to enactment. Once signed into law., the Act required that

some forms and instructions be de

.

signed and others he rewritten to re .

fleet the many provisions of the law.

IRS Publishes booklets on more th 100 specific tax topics and

makes thern available to the public free of charge In 1986 the Service distributed 4 miji-O - ederal In,,, e 7

Copies 0 ]bur , 1 .9 million COp.

ies of the fde for Small Busi.

ness, 690, copies ofthe Farmer's

i e of 6,1,0()o copies of the ide or 0"1 ercial Fishe,

PROBLEM RESOLUTION

PROGRAM

The Problem Resolution Program

Continues to provide taxpayers with a

elating to levies on retirement in

come. Other important developments

include a short form for fiduciary

income tax filers and procedures to

ensure those given Power of attorney by estates received appropriate no.

tices relating to rhe estate tax returns.

,

07, 3P & ~ t~ q, ~
16

ENFORCING THE LAW

The twopaying public deserves

assurance that their tax

administration is seeking out those

who arenotfulfilling their tao.,

obligations, coliceting the correct

amount (iftaxes due. and when

necessaiey, bringing Mininal

violators of the tax law tojustice .

IRS personnel assigned to these

tasks (ire highly .trained and skilled

prQfessionals. With the ever

increasing help of modern

technologies. they work to ensure

that (III taxpayers

pay ortly their

fair share of tax - no more!. no

less . Their goal : maximuin results

with minimum expense. The new

year the automated system collected

nearly two~thirds ofall delinquent

accannts it received without

resorting to additionalfield

contacts or processi.

ng. Also In this

year of increasing global activity

IRS reorganized and consolidated

the international tax operation and

established the ciffice Ofthc

assistant commissioner.

international .

EXAMINATION RESULTS

IRS examined 1 .3 million returns in

11486 recommending additional tax

arid ~enaltjes on .9 million, totaliog

$19 .1 billion - a 12 percent increase

over 1985. Examination, re%ultea in

overassessments on 68,310 returns,

with refunds of 9737 million.

This Year IRS adjusted 212,000

Forms W-4 when employees understated income or claimed too many

itemized deductions and personal or

dependency allowances . More than

45,000 taxpayers who filed false withholding information received the $500

civil penalty which applies in these

cases .

Its addition, service centers verified turn,

or corrected 584,028 re

s

by mail .

In total, the Service examined, verified

or corrected 2.03 percent of all returns filed, compared to 2 .13 percent

in 1985. This program also resulted in

9796 million in recommended additional tax and penalties . While the

Service actually examined fewer returns in 1986, the recommended addi .

tional tax was higher and the number

of returns with no change was lowe r

Continued emphasis

0.

fraud detec~

tion during the examination process

produced more than 8,000 fraud referrals submitted to criminal investigatoo. in 1986.

This penalty is equal to

50 percent of the entire additional tax

due if any part of the underpayment is

due to fratud, Plus ';0 percent of the

interest due on the Port ion of the

underpayment attributable to fraud .

automated examination -Vstem, for

.

instance . will make it possiblefor

revenue agents to .figare tax, check

. and write reports oil inventories

site with portable computers ]""ded

with state-of-the-art .9Qftworre.

Scmiee centers mse computers to

spot not on(y errors 011 t" retarns

lint also discrepancies between

figures all tax retnrns and the.

amounts on reportsfiled bYPUYcrs

qfincome. The automated

Collection systen, -just coin pleting

its secondfull year of operation

continues to show significant

improvementq over the collection

f,fficeflinction it replaced. This

AUTOMATED EXAMINATIOI\,

SYSTEM

In 1986, IRS contracted for up to

18,000 Porcableco Puters that -igh fewer than 17 pounds and fold twche size of a

briefcase. This new 0 t

ment literally equip,

Put,' more than 40 IRS .

designed applications at the fingertips

of revenue agents. Labor intensive tasks of the Past can now be done in a fraction Of 4~C time. For example

agents coin calculate an individu~ll

net operating loss includin g

backs and carry- catrYlorwards, determine

the amount ofunrePorted income based on bank account analysis and calculate the correct depreciation . The integrated software package includes

word Processing, spreadsheet capabilit) ; graphics, data base management

and telecommunications . With the Portable Printers, agent, can print

standard and customized letters as well as examination reports . Over 6,000 revenue agents already have

received hardware and software train

. ing on these

Future Ph "laptop" computers

.

es of the new system will include the i .troduction'of Mini/

q

I-er, computers, a ciLatur system to

help agents find reference matet-Us

Ind mainframe computers with

even more capabilities. Whbn the system is fully' in Place by 1989 it will

the quality of e~amj improve

sonnel pr~ductivi nations and per.

ty, while reducing Overall examination costs .

Il" 'I'OPMATION RETURNS PROGRA M

Because of the computer capability Match documents, it) 1986 IRS noti,to

lied more than 3~2

Of Million taxpayers leerning, discrepancies between

income the), reported on their tax

returns and income reported

ers by pay . Of income on information returns .

In additi

The engineering program is one of the oldest and most productive programs

within the examination division . Initi. ated during the First World War, the

Program has grown to its strength current of rough)), 360 mining,

Petroleum, industrial and general engi

. .

neers, geologists foresters Ind aPprajs~ ers . With the M,'-ljor portion of their time devoted to the examination of

Jarge corporations and tax shelters, these specialists provide invaluable

service to both Appeals and Counsel

.

on, the Service sent 3 .3 million notices to taxpayers who appa,

endy failed to file federal lax returns

. S-(r%'jce centers received 8 .50 mflhou

information documents, including over 21o million Forms IV~

Social Se - from the

more thancurity Administration, and 29 million from trustees for

contributions to individual retire. men, arrangements and

employee plans. simplified

ENGINEERING PROGRAM

RETURN PREPAREk PROGRAM

'

Return preparers like other profe,~.

sionals, maintain'. codc of ethics and standards befitting their proles . sion. Both the IRS and Tetuni preparers have a duty to safeguard the rights

and respons'"it'i's of all taxpavcrs~ and when 'some unscrupulous Prepar- ers violate their trust, IRS 'kuv must Pena b y

lize them. As of SePtc"cr 30, 1986, based on certain preparer con. duct, IRS asserted 121065 Parer penalties return pre.

. apply when t conduct penalties

he facts and circum

.

'

stances establish that a preparer has negligently, intentional y, (it willfully understated MN liabilit'! in the pre," Paration of a return or a claim for refund ,

COMPUTER ASSISTED AUDIT PROGRAM AND

STITISTICAL SAMPLING

Computer specialists

,

in who at(! trained computer systems, hardware and

Program languages, assist examiner s

cases involving computerized records.

The IRS trains coin

cialists in Puter audit spe. advarcedstatistical

ence techniques so they ainfer.

then, either in e=m .

' pply mations or a,

expert assistants to other revenue agents and -initiation specialists.

Employee Plaits

isSued .141,077

detcr7nination letters ,

, - - , ~'. , wi~ , X6_ 4 -

mtam .4-ap
L8 O'~, nk~ I~

J

RESULTS OF

CRIMINAL

INVESTIGATION

ACTIVITY-1986

Investigations

Initi.tLd

ln~cstigntions

Completed

P,asccution

Recammendatiom,

Indictments/

I .f .-mions

C.-ictimts

.

S-t-ino

Percent Rectiving

Prison Sentences

COORDINATED EXAMINATION

This program includes 1,436 of the

largest and most complex dom estic

and foreign-controlled corporations.

Teams of the most experienced exam

.

iners control and perform examinations of these corporations . IRS

continually monitors the program to

ensure the highest degree of efficiency

and effectiveness . An executive level

task force is completing a study to

evaluate the program and mak~ rec.

ommendations for improvement. The

coordinated examination program

recommended tax deficiencies and

penalties totaling $8 billion in 1986.

(See tables 7 through 12for additional iriformation on examination

results.)

F-dulent

T=

ShOtillegal

T_

ProtestN.-Aics Barik Scclcc~

Wicacil Act (Title 31)

All

Oth- Tota l

1986 1985 1986 1985 1986 1985 1986 1985 1986 1985 1986 198 5

312 326 338 447 1264 1188 354 338 3593 3766 5861 6065

335 334 464 608 1343 1277 369 250 3576 3442 6087 591 1

231 213 299 351 956 840 27.5 174 1763 1656 3524 323 4

1-14 92 338

8

345 817 673 204 144 1471 1198 29.54 245 2

7

' s

55

29

296 302 666 515 Jos 91 1283 1062 2460 202f

so 50 319 304 662 514 111 97 1246 1126 2418 2091

59% 66% 6096 61% "96 80% 60% 57% 56% 58% 61% 64%

ABUSIVE TAX SHELTERS

Abusive tax shelters are schemes de.

signed to create paper losses that have

no business or economic basis. Be .

cause of the demoralizing effect they

have on the tax-paying public, these

shelters have long been a target of

employees in examination, criminal

investigation and other enforcement

functions. e

As of Sept mber 30, 1986, the Service had examined 184,249 returns

with tax shelter issues - an increase

of 42,826 returns over 1985 . Examinations of 171 354 of these returns resulted in mQ recommended

additional tax and penalties of $3 .7

billion .

Today criminal investigation detection teams in each service center

screen returns for schemes that could

be abusive shelters in order to block

improper refunds . To date the teams

have frozen more than $19 .5 million

in refunds that were directly assocliated with abusive tax shelters . The

cases they have referred to district

offices have resulted in more than

1281 criminal investigations and civil

examinations of promoters and investors .

As a result of rules requiring tax

shelters to register with the examina,

tion division, organizations have sent

8,583 applications whose deductions

and credits substantially exceed investments. Promoters who overvalue a

shelter's assets by a large margin or

who make false claims about the shelter may be subject to a penalty of

$1,000 or 20 percent of gross revenues from the sale of the shelter- If

the promoter is subject to this penalty,

the Service will attempt to advise the

shelter's investors before they file

their returns that any deductions or

credits taken in connection with the

identified shelter will be denied and

that they will be subject to certain

penalties . in 1986 IRS issued 5,307

letters on 22 promoters during the

year and obtained court orders barring 15 promoters from marketin g

s

.

helters . This year in Ft. Lauderdale,

Florida, a tax shelter promoter was

sentenced to serve 62 years in prison

for aiding and assisting in the preparation of false federal income tax re .

turns and filing false personal federal

income tax returns. This represents

the longest prison sentence handed

down so far for a shelter promoter.

Further, the judge ordered the promoter to serve at least 20 years before

being considered for parole. The

scheme involved some $50 million in

tax wrjteoffs with investor funds

routed thrZgh Liechtenstein, the

Cayman islands and the Bahamas .

ILLEGAL TAX PROTESTERS

Illegal tax protesters are those who

break the tax laws to protest govern . mcnt policy. Unfortunately, they some .

times attract a large following of

people who fail to recognize the ial .

lacy in their arguments.

The founder and former president

of an illegal tax protest organization in

Atlanta, Georgia, was sentenced to

serve 84 years in prison for aiding and

assisting in the preparation of false

federal income tax returns .

A Cedar Rapids, Iowa, school .

teacher, who also is a "bishop"in a

California-based organization that sells

church charters and ministerial cenifi .

cares, was sentenced to serve eight

years in prison after being convicted

of conspiracy to interfere with or im .

pede the lawful function of the IRS.

Seven other individuals who had been

charged with taking false deductions

on their federal income tax returns

negotiated plea agreements and testi~

fied against the principal offender.

CRIMINAL INVESTIGATION

Voluntary compliance with the tax

laws in the United States self-assess:

ment system of taxation relies heavily

on the deterrent effect of successful

criminal prosecutions . IRS criminal

investigators long have been recog .

nized as being among the top financial investigators . Today, organized

crime, abusive tax shelters, illegal tax

protesters, high-level drug dealers,

Organized Crime Drug Enforcement

Task Forces, Bank Secrecy Act and

money laundering violations, and false

claims against the government are

among their priority enforcement

targets. While the examples which

follow are just a microcosm of the

total universe of successful tax prose .

cutions for criminal violations, they

illustrate a key issue: these are expensive crimes. ~ot only do the courts

hand down substantial prison sentences, but those convicted must also pay

fines, civil taxes and penalties in addi .

tion to serving prison sentences .

BANK SECRECY ACT

The Bank Secrecy Act requires finan .

cial institutions to report currency

deposits or withdrawals of more than

810,000 . The second largest bank in

New England %%,as fined $1 .2 million

for violations of the act. The bank

failed to report 31 separate with.

drawals of more than $10,000 each by

an alleged bookmaker. A West Covina,

California. man was sentenced to

seven years in prison for violating the

Bank Secrecy Act when he laundered

drug-related money.

QUESTIONABL E

REFUND PROGRA M

This program seeks to uncover those

individuals who file false or fictitious

tax returns for the purpose of getting

refunds to which they are not entitled.

Detection teams in each of the service

centers intercepted more than $10 .8

million in fictitious claims for multiple

refunds and referred more than 680

schemes to district offices for investi.

gation .

An Oak Harbor, Washington, man

was sentenced to serve three years in

prison for filing false refund claims

and for mail fraud. A former US. Navy

officer, he used names and social secu.

rity numbers obtained from Navy

billet rosters. A false refund detection

team blocked all of the more than

$350,000 in false refund claims before

any checks could go out . A former

revenue agent was sentenced to serve

four years in prison after being con .

victed of filing false claims for refund

in Lubbock, Texas . The scheme in .

volved the use of false Form NV2 pre.

pared with legitimate social security

numbers and employer identification

numbers obtained in the defendant's

accounting practice .

ORGANIZED CRIME

DRUG ENFORCEMENT

TASK FORCES

The Service is asignificant participant

in the President's Organized Crime

Drug Enforcement Task Forces. The

investigation of narcotics traffickers

involves in-depth financial analyses by

special agents of the criminal investi .

gation division . These investigations

are in direct correlation with effective

tax administration and the fostering of

voluntary compliance among individ.

uals receiving income from illegal

sources .

A former assistant United States

attorney in Jacksonville, Florida, was

sentenced during the past year to

serve five years in prison for conspiracy to aid and assist a drug smuggler

hiL illegal profits from the IRS. fie

also was convicted on charges related

to money laundering activities . An ex.

Exempt Organizations

approved

43.007 applications.

NX

-4
20

accountant from Florida was sentenced to 35 years in prison and fined

$6 million for tax on money laundering and drug-related violations when

evidence was introduced establishing

that he had laundered over $100 million in illegal drug profits. Other cvidence established that between 1973

and 1983 he had laundered over $1

billion .

A former assistant district attorney

in Kalamazoo, Michigan, was sen .

tenced to serve five years in prison for

tax evasion and for interfering with

and impeding the lawful functions of

the IRS. The charges stemmed from

his involvement in a multi-million

dollar drug ring.

COLLECTION

Collection is responsible for collecting

taxes where the amount owed is not

in dispute but remains unpaid. Collection secured $19 .6 billion in 1986,

compared with $18.3 billion in 1985 .

Of that sum, $9 billion was collected

as a result of the first bill . Subsequent

billings yielded $5 .5 billion, and additional action on delinquent accounts

generated $5 .1 billion .

AUTOMATED COLLECTION

SYSTEM

The automated collection system

(ACS) completed its second full year

of operation and increased in efficiency to the point of fully collecting

nearly two-thirds of all delinquent

accounts it received without resorting

to additional field processing .

WORKLOAD PRIORITY AND

SELECTION SYSTEM

in July 1986 collection implemented

a workload priority and selection system to more effectively manage its

growing inventory Computer models

predict the yield of cases in each of

seventeen workload categories, based

on historical data and the chbracteris .

ties of related tax returns.

When taxpayers fail to resolve their

accounts in ACS, this new system o

'

f

inventory control either issues the

accounts to the collection field func.

tion or holds them in a "queue." Accounts in the "queue" are then

assigned to the field function based on

their predicted yield and on the staffing available to work them.

SERVICE CENTER

COLLECTION BRANC H

The service center collection branch

(SCCB) is collectiods first point of

contact with taxpayers who may be

delinquent in filing tax returns and

paying taxes. In 1986 SCCB expanded

its traditional role of sending notices

and bills to taxpayers and responding

to taxpayer correspondence . When

IRS records show that a liability exists

and the taxpayer fails to file an income or employment tax return,

SCCB now t~kes additional action .

SCCB will prepare and file the return,

assess the tax, and initiate the collection process. (For details on collection data, see tables 13 and 14 .)

INTERNATIONAL

IRS reorganized and consolidated all

of its international tax administration

functions -foreign operations district, examinations international

programs section, and the tax administration advisory services division -

into the office of the assistant commis.

sioner, international, to strengthen and

integrate the various activities of inter.

national tax administration. The new

office has all responsibility for international tax program development and

compliance. This responsibility includes assisting in the development of

tax treaties and providing technical

n, M . . .

IqW~4 a4l 2 1

assistance to modernize and

strengthen the tax systems of foreign

and state territorial governments.

International coordinates informa.

tion exchanges between IRS and state

governments . The new organization

also administers IRS laws and related

statutes tus they apply to US . taxpayers

doing business or residing abroad,

corporations and businesses whose

books and records are maintained

outside the United States, and nonresident aliens or foreign corporations

who receive or earn income from

sources within the United States. In

the interest of quality improvement,

international plans to change its scope

and direction to achieve long-term

effectiveness in such areas as treaty

relationships, operational research,

use of personnel overseas, automation

and federal/state exchanges. Working

toward more effective compliance,

this new office will conduct interna.

tional research projects, study compli .

ance and taxpayer assistance

problems and the issues involving

international tax consequences.

This office developed, implemented

and evaluated programs for the effec .

tive examination of the international

aspects of tax returns, the majority of

which involved multinational corpora.

tions. Some 400 specially trained

international examiners stationed in

21 key districts here in the states performed these functions . International

further emphasized compliance in

1986 by giving special attention to

U.S . taxpayers operating in tax haven

countries, violations of reporting requirements of the Bank Secrecy Act,

high-level drug traffickers, and the

Presidential Drug Task Forces . In

terms of taxpayer assistance, intema.

tional, working at larger US. embas.

sies, served over a half million US .

citizens living overseas. In addition,

representatives made regularly sched .

uled, publicized tours to embassies

and consulates in 72 cities and 35

countries . Revenue service representa.

tives, stationed in 14 overseas coun.

tries, are responsible for developing

and maintaining effective relation.

ships with the foreign governments

and expanding political and economic

contacts in their respective countries ,

Working with US. taxpayers in for.

eign countries is not the only foreign

involvement . International administers the more than 35 tax treaties and

agreements the U.S . has in force

worldwide. These treaties and agree.

ments provide for information ex.

changes and relief from double

taxation contrary to treaty rules.

There are simultaneous examination
programs with Canada, the Federal Liberia and Saudi Arabia, and works

Republic of Germany, France, Italy on short-term projects with Jamaica,

Japan, Norway and the United Km4- Indonesia, Sri Lanka, as well as tile .

dom, and cooperative effort- with Inter-American School of Public Ad

Canada, Italy and France to conduct ministration in Brazil . In the US. Virbilateral criminal investigations when gin islands, Trinidad and Tobago the

there are alleged significant tax viola . Service surveyed the Lax departments .

tions . The Service exchanges informa- It has given help to the Government

tion spontaneously with US.

treaty of American Samoa and has received

partners, Australia, Canada, Denmark, foreign officials to observe IRS prothe Federal Republic of Germany, grams . IRS has famished instructors

fo tax ractitioner institutes at col.

a revenue ruling providing guidelines

for plan integration with social security benefits under the Social Security

Amendment,; of 1983 . Another reve.

nue ruling required that if values un-,,,

der an individual retirement account,,

(IRA) are guaranteed or can be pro-,

jected, the trustee or issuer must in'

certain circumstances disclose to the

person buying the IRA what amounts

that person will be able to withdraw.

France, Italy, Japan, Norway, cuen r p EXEMPT ORGANIZATIONS and the United Kingdom, particularly ieges and universities and has give n

Iwhen information concerns the world . two six-week seminars -r reirpi tax

wide operations and practices of administrators . In addition it gave the

multinational industries . And IRS first in a series of management semishares information returns routinely nars in Spanish for managers from the

with its treaty Partners on income Government of Ecuador.

paid from sources within one country The assistant commissioner, intema .

to recipients who are residents in tional, is a member, with others from

the National Association of Tax Adanother f a federal-state coordi.

IRS executives are active in the ministrators, 0

Caribbean Organization of Tax nating committee to expand current c

Administrators, the Group of Four,

the cooperative relationships between th

Pacific Association of Tax Admimstnl_ IRS and state Lax agencies .

tors, the Organization for Economic Recent successful accomplishments

Cooperation and Development and include joint state.IRS fuel tax excum.

the Inter-American Center of Tax nation programs, training activities

Administrators (CIAT). The 1986 CIAT and long-range tax compliance planAssembly elected the United States to ning.

serve as the First Counselor on the

CIAT Executive Council for 1986-8-7 . EMPLOYEEPLAN S

The IRS hosted the CIAT Technical The employee plans function enforces

Conference on the Application of

Automation for the Increase of Reve- the tax laws governing pension plans

nue in the Modem Tax Administra .

by issuing letters determining whether

tion

. or not a plan qualifies under the law,

International is involved in almost examining returns to ensure that

every continent

. The Service gives plans are complying with the law and

publishing'rulings to clarify the law. In

long-term Lax administration advice to 1986 the Service issued 341,077 of

Costa Rica. Egypt, Indonesia, Jordan, these letters and examined 20,519

returns .

To improve and increase examina .

tions of retirement plans and unions,

the Service began discussions with

two Department of Labor agencies

,

Pension and Welfare Benefits Adminis.

tration and Office of Labor-Management Standards.

During the year IRS issued several

revenue rulings providing guidance to

taxpayers who engage in arrangements concerning adjustments to

certain minimum funding requirements and the determination of benefits on a termination basis in defined

benefit plans. The Service also issued

Responsibility for many of the laws

that exempt organizations from tax

falls under the exempt organizations

function .

During 1986, IRS issued 15 revenue

rulings and procedures and 369 technia advice memoranda . The Service

also acted on 62,739 applications and

requests for rulings from organizations

and examined 21,837 exempt organization returns .

IRS published a revenue procedure

relieving some self-supported churchaffiliated groups from filing annual

information returns unless they both

serve the general public and receive

their support mainly from sales or

services, contributions from public

solicitations or government funding .

In addition the Service issued regulations dealing with inquiries and

examinations of churches. These regulations limit the circumstances under

which IRS agents may contacta

church. They apply to any inquiry or

examination of a church, convention

or association of churches to determine whether or not the group qualifies for tax exempt status, Owes tax OF'

unrelated trade or business activities

or is liable for tax for some other

reason. (For additional data on einployee plans and exempt organizations, see statistical tables 17

through 21 .)

MANAGING THE

TAX SYSTEM

A challenging part of the emssion

of the IRS is to manage the tax

system at the lowest cost to the

taxpayers. without compromising

the high level ofiluality and service

taxpayers should expect. These

efforts include tile reemitment and

development ofthe most qualified

people. the effective use of

buildings. equipment and other

.facilities : aped the continuing

search .for ways to work better and

more efficieniky. Proper

management of any systern

requires proper people using the

proper tools ofmanagernent . In

1986 a new assistant

commissioner area was estaleffished

to oversee the redesign ofthe tax

system. Research continued into

the areas of low compliance with

the tax lot&-;. And the Service

intemsiffed its efforte; to enhance

the skills and efficiency of its

people .

'7""' ~M~~,Pk 23

TAX SYSTEM REDESIGN

The redesign of the tax processing

system is a massive effort to replace

and modernize all the ADP equipment

and application software for tax return

and tax information processing. The

size of such an effort requires an evo .

iutionary process that will spawn a

,state-of-the-arts processing system in

the 1990s . This system will feature an

expanded and modernized master file,

operating from a data base environ .

ment at a number of computer

facilities.

IRS processing and compliance

personnel will have immediate access

to up-to-date and on-line tax return

information . Telecommunication

equipment and automated information

processing will replace the shipping of

magnetic capes, much of the bulk

processing, and help reduce the proc .

essing, storage and retrieval of moun.

tains of paper.

In 1986 a Treasury order estab .

lished the office of the assistant commissioner, tax system redesign, to

effect the planning, acquisition and

installation of information technology

to satisfy the Service's processing

needs. The electronic filing project

described in chapter one is part of

this process.

LASER TECHNOLOG Y

Optical disks, which hold thousands of

pages of information and require little

space, may hold the key to solving the

problems of

I

ring and retrieving tax

information . Present technology would "to

permit storage of 16 cubic! feet of doc .

uments on it disk the size of a long.

playing record.

in August 1986 IRS began testing

the equipment used to store and retrieve tax return documents using

laser technology. The Files Archival

and Image Storage Retrieval test,

known as FAISR, should help solve

the storage problem in the future and

virtually do away with the misfiling of

tax returns . Future plans include test.-

ing other laser possibilities, such as

sending images to far-off sites, provid .

ing return images to other IRS sys.

tems and processing tax returns from

images on computer screens .
;%~,4w4l,W-11

2 5

AUTOMATED UNDERREPORTER

The underreporter program reviews

cases where the computers identify a

possible mismatch between an information return, which reports to IRS

income paid to a taxpayer, and the

amount shown on that taxpayer's

return . This automated underreportcr

system will replace the present one,

which relies higbly on manual Pa

.

perwork. The new system will enable

IRS Lax examiners to examine and

close cases on computer terminals. It

will also do away with many clerical

tasks.

REVIEW OF ADMINISTRATIVE

FUNCTION S

in 1986 IRS reviewed all the administrative functions in the National Office

with the idea of moving, combining

or even abolishing some offices to cut

costs and improve operations. The

Service realigned the functions in the

office of the associate commissioner

policy and management, moved so~c

operations to other areas and elimi . 0,

nated the p sition of assistant Cummissioner, support and services. Under

the new organization, there are fewer

levels of managers and overhead positions, and managers are responsible

for larger numbers of employees. The

results are lower overhead

costs, quicker responses to problems anti

the ability to anticipate and deal with

future issues more effectively.

PAYROLL IMPROVEMENTS

Working with Treasury, the IRS conthrued to devel op the Federal Civilian

Pay System, which will combine payroll operations of all Treasury Department bureaus under a single system.

The Service also put in place a new

automated personnel system, which

updates employee accounts directly

IRS began implementing a new

automated training system throughout

the nation, and by the end of 1987,

this system will be in place in 169

sites . Employees will then be able to

take courses in th

c

ir offices, rather

than in regional training centers, re,

suiting in large savings in travel and*

training time .

from a computer terminal and issues STRATEGIC MANAGEMENT

management information reports over- SYSTEM

night . This system helps IRS keep pace with

TRAINING AND RECRUITMENT the environment in which it operates .

Through this system the Service ca n

The IRS workforce grew from 96,705 identify trends or changes that affect

employees at the end of 1985 to its mission, formulate long-range goals

102,206 at the end of 1986 . The Ser- and strategies to achieve them and

vice increased staffing mainly i it the monitor progress in achieving those

service centers to bolster the process- goals . In 1986 IRS completed a numing of tax returns and in examination, ber of initiatives designed to

collection and criminal investigation strengthen compliance with the tax

to boost compliance with the tax laws' laws, manage information technology,

Because employee integrity. dedica. maintain program quality and effection and expertise are critical to a tiveness in the face of rapid change

smoothly run tax system, in 1986 IRS and recruit and retain quality employundertook several efforts to remain ees

'

The three initiatives described

competitive in recruiting and retaining below were completed in 1986 :

high caliber employees . One project * One important initiative compared

aims to improve not only relations methods used by IRS to quality conwith colleges but the IRS image with trol programs used in the priv a'te sec .

college students as well; another be- tor. The resulting report recommends

gan efforts to better forecast staffing a model system for the service centers

needs and streamline recruitment and district offices which uses on-lin e

procedures. Four offices started testing reviews to lower the number of errors

programs to assist employees in ca . and correct more quickly those errors

reer choices, financial matters, reloca . that do occur.

tion and person al problems. Two sites

- Another report on joint efforts with

began pilots of new health improve- state tax agencies has led to the estabmerit programs to help employees lishment of a federal-state coordinatkeep physically fit, with 11 other sites ing committee, made up of IRS and

scheduled to start in 1987. state agency officials . The committee

There is special emphasis on help- has agreed to pursue joint efforts in

ing managers and employees cope training, taxpayer service and compliwith the growing presence of the com- adce matters, including training for

puter in the workplace. Focus 86, a field executives on ways to enhance

program on managing in an auto. joint cooperative efforts with the

mated environment, gave service cen. states .

ter managers a better understanding -The third report deals with the need

of the functions in their various offices to educate self-employed taxpayers on

and how they affect one another. New their tax obligations, it calls for longin-depth technical training helped term relationships with institutions in

employees in service center computer the public and private sectors to meet

divisions become more effective in the educational needs of the self-eni~

their work. ployed. Other recommendations include more tax information for the

SPACE MANAGEMEN T

in the past and for the most part, the

General Services Administration has

managed the buildings the IRS uses

both in Washington and in the districts and regions. During 1986 the

Service took over the operation and

maintenance of the Brookhaven Ser,

vice Center in Holtsville, N .Y, and the

headquarters building in Washington,

D.C., and will assume responsibility

for 11 additional buildings during the

next year. The objective, under a 1985

executive order, is to give management flexibility in the use of property

and to improve the quality of the

workplace for employees.

self-employed and better ways of get .

ting that information to them, as well

as a Servicewide commitment to edu .

cating self-employed taxpayers and to

increasing IRS awareness of the compliance problems in that area,

RESEARCH

IRS research efforts focused on

strengthening voluntan, compliance,

cutting costs and improving the efficiency of operations, and identifying

and analysing trends reflected in the

strategic plan. The electronic filing

project described in chapter one resulted from these research efforts .

The rapidly advancing technology of

artificial intelligence offers great po.

tential for increasing both quality and

productivity. IRS has set up an artifi .

cial intelligence laboratory, and to staff

it, has trained a select group of IRS

employees at universities considered

to be at the forefront in this field. Other important research projects

during the year included :

• Development of a computerized'

model to give government officials

ready estimates of the impact on

revenue of budget increases in IRS'

revenue-producing enforcement

programs ;

• A completed report on alternative

filing methods, which showed that

most taxpayers are either opposed

to or indifferent to staggered tiling

dates, or an extension of the filing

deadline to July 30 or September

30 ;

• The development of a model to

determine the best locations for

posts of duty in a district, with the

pilot test scheduled to begin in the

Jacksonville, Florida, District in

1987 .

THE TAX GAPAND

COMPLIANC E

One of IRS' greatest concerns is the

tax gap, that is, the amount of taxes

legally owed that is going uncollected.

The Service is studying in great detail

the size, composition and growth of

the tax gap. Studies now in progress

focus on income that individuals receive from partnerships, small busi.

ness (Subehapter S) corporations,

sales of goods furnished by informal

suppliers, tips and other sources . As

required by Congress, IRS is updating

tax gap estimates published in 1983

and projecting them through 1992.

The new estimates will help plan

methods of lowering the tax gap

and focusing on specific compliance

problems .

The Service is also studying ways of

using computers to deal with these

compliance problems . The aim is to

isolate specific abuses, then resolve

these cases through correspondence

and avoid costly and time-consuming

examinations . These studies include

efforts to identify unreported income

from real estate sales, payments-in .

kind and taxable pensions and annui.

ties, as well as ways to disallow

improper deductions for contributions

of property, such as works of art .

COMPUTER SERVICE S

This year IRS created a user-assist.

ance and computer-capacity manage .

ment office, which combined in a

single area the responsibilities for

ensuring the equipment could handle

the workload, integrating systems and

helping employees when they met

with problems. Newly-formed computer services divisions in the service

centers, fully staffed with hardware

and software experts, were on call 24

hours a day, seven days a week. In

addition, a newly-established command center in the National Office,

also working around the clock, kept

an eye on the returns processing sys .

tem throughout the IRS to alert the

service centers of actual or potential

problems.

The Service awarded a contract to

replace some parts of the Integrated

Data Retrieval System. This system

allows service centers and district

offices to research taxpayer accounts

and to make changes to those

accounts . The aging terminals experi .

enced frequent and costly break.

downs, and the communication

processors installed in the late .1970s

could no longer accommodate the

volume of transactions .

The new system will help process

the workload faster and provide the

capacity to handle the expected

growth in the workload .

INSPECTION

Inspection, headed by the assistant

commissioner~ inspection, reports

directly to the deputy commissioner

and commissioner of IRS, thereby

assuring the complete independence

of the inspection organization .

Through its investigative activities,

inspection assists in assuring the high .

est standards of honesty, integrity,

loyalty and security among it,; employ .

ees . Inspection also provides a con .

structive service to management

through its internal audit reviews and

appraisals of IRS operations. The rec .

ommendations coming from these

reviews enable those responsible offi.

cials to tahe actions to improve the

efficiency and effectiveness of operations and to improve internal controls.

i Research continued

nto areas oflow

compliance with

the tax laws.
!6

During 1986

the automated poten- were alow to identify and resolve MINTERNAL SECURITY payer and employee errors. The iden .

tially-dangerous,mpayer system, heseldnds 'cation tificatior4and resolution of t

A

commitment to quality and service which allows ready identifi of errors can significantly add to set.

must begin with reassurance to tax- of taxpayers who might present a i

payers that IRS employees live UP to danger to IRS employees, continued vice center, collection division and

in alerting taxpayer service workloads.

the highest standards of honesty and to play an important part nded, amopg

integrity, and that these employees employees to potentially dangerous The report recomm

e

several changes' that IRS assign re- tecte

will be pro _ d from efforts to cot situations sponsibillity for federal - .deposit

rupt or threaten them while carrying in 1986 the Service investigated s to a single service center

out their duties . These tasks lie with 593 cases of alleged employee miscon . procedured create an information

security division. The duct. In the 398 cases where momage- manager an

the internal 'tion 134 resulted in system to monitor the processing of high level of integrity of IRS employ- ment took ac '

nd alert managers to

ecs is evident in the cooperation inter. employees being cleared, while 264 these deposits a

iving potential problems . other important

nal security receives in detecting cases resulted in employees rece ions include a method

fraud and corruption. such disciplinary actions as seporra- recommendat cpayer's name and

One such example involved an em, tions, suspensions and reprimands. for checking the tw

ed identification number before they are

ployee who reported a co-worker',s Internal security also cOmPlet to err- 'round investigationson printed on the deposit cOuPO U

suspicious behavior showing Potential 2,973 backg year and con- sure that deposits are applied to the

criminal misconduct. The ensuing employees during the ~

investigation disclosed a conspiracy ducted police record checks on per

. right taxpayers and a check (in name

a taxpayer and !red for temporary and identification number before the

involving an employee, sons consid

I

an accountant who were attempting to appointments

. deposit is entered in the master fi e to

identify erroneous deposits sooner.

defraud the government of $1 .6 mil- Management agreed with these prolion by filing returns to get tax refunds is taking steps to correct

, Pro

*that had gone out e'mS .

of INTERNAL AUDIT sals and

for corporations thePus b

business and by abating taxes, penal- The internal audit division reviews Besides improving operations and

ties and interest due from several operations throughout the IRS to find giving managers the ability to fix

taxpayers. The investigation led to ways to improve the efficiency and problems more quickly, internal audit

prison terms for the three CO . economy of operations and ensure the lace by

conspirators . effectiveness of service programs and recommendations Put in P

Another important investigation internal controls- management in

1986 will yield $605

involved the leader of a tax Protest Audits range from on,line reviews

of million in added revenues and cost

savings. The recommendations requirgroup who had contracted for the major systems acquisitions such as ing long-range actions will yield anmurder of an IRS special agent. Dur . the automated collection system other $690 million.

ing the investigation, this individual (ACS) and major Service programs Internal audit also reviewed its own

also indicated that he would organize such as returns processing and the operations extensively to find better

a team to kill those judges who he Tax Reform Act of 1986 to managerial ways to improve their quality and

believed had deprived people of their compliance with internal controls at efficiency . one result of this review

rights. lie too was arrested, convicted the district and service center level . will be more local audit coverage withIn one review, internal audit studied out

and sentenced to prison during decreasing national coverage lev,

Internal security investigations led the causes for major problems recom . els and more timely feedback to

.

to the arrest or indictment of 158 non the 1985 filing season. The 36 service management on its quality

IRS individuals and 77 current or mendations to management addressed initiatives . This increased coverage

former IRS employees. Of the 259 the major problems, such It, inexperi, will be as accomplished through more

cases where judicial action w mplovees at the service cen- taken enced e efficient use of resources and imin 1986, 236 resulted in convictions ters ineffective controls for findin

- 9

proved techniques.

or guilt), pleas, while 23 resulted in and'correcting documents and i m

dismissal or acquittal . Assaults and proper processing of magnetic tapes

threats decreased moderately in 1986 with tax and payment information.

with 947 investigations, compared to a Another important internal audit

record number of 955 a year earlier. A report focused on federal - deposits

total of 28 persons were prosecuted in made by employers to cover their

1986 for assaulting or threatening IRS payroll and other taxes . Auditors

employees . found that more than 700,000 O f

these deposits totaling $6 .5 billion

would result in incorrect bills, penal .

ties, refunds or inquiries for delin.

quent returns because control systems

tAT4, j~"~jrnt. 'e*~A- 2 7

INTEGRITY PROGRAM

The combined efforts of internal audit

and internal security focused on pro.

grams to prevent and detect fraud.

Internal audit completed 26 audits of

highly-vulnerable areas, such as identi .

fying control weaknesses which al .

lowed an imprest fund cashier to

embezzle $8,000; and inadequate

procedures for processing automated

collection system (ACS) site mail

which enabled a mail clerk to steal

approximately 12,000 pieces of mail,

including 850 remittances totaling

$800,000 and 533 unprocessed origi.

nal tax returns. Internal security con.

ducted 25 tests of high-tisk activities

where there is potential for corruption

that could affect IRS integrity. During

the year, the division conducted

probes for the purpose of determining

the extent of narcotics usage and attendant usage of embezzled funds to

provide the narcotics. In one particu.

lar test, three individuals who con .

spired and embezzled $75,000 in

remittances for the purpose of financ .

ing the distribution of narcotics were

detected, arrested and sentenced to

prison terms: Internal security made

presentations to more than 23,000

new and incumbent employees to

enhance their awareness of the high

standards expected of Service employ.

ees and to provide guidance in the

recognition of potential hazards.

Cost orcollecting $100

in 1986: 49 cents.

PRODUCTIVITYIMPROVEMENT

In an effort to improve productivity,

IRS works not only through its own

programs lout also through govern .

ment-wide productivity initiatives

which show promise of either more

revenue or lower costs . During 1986

the Service funded 13 of this type

project. Some examples include :

0 A system to automate the updating

of the Internal Revenue Manual : This

manual includes internal procedures

for all IRS functions . Change and review of the manual required combining pen-and-ink entries from several

offices . The automation of this process

should result in faster, error-free reviews so that the manual is in the

hands of employees with up-to-date

information . To taxpayers, this means

uniformity, consistency and equity in

the way their cases are handled .

- A processor to read and collate

cancelled checks : This equipment,

now being tested by criminal investi .

gation in the Pittsburgh District, reads

the magnetic ink on the bottom of the

checks, records the numbers and creates a cheekspread. The process is

critical for reconstructing a taxpayer's

income for the year and will save

considerable time and labor over the

present manual system.

A system to store and research trial

documents : This system electronically

reads and stores typewritten material

such as pleadings and motions, then

searches for information based on key

words given by the researcher. It is

used primarily to prepare for trial.

In 1986 IRS had $600,000 for funding projects such as these . Beginning

in 1987 there will he $2 million available for central and regional funds and

for awards, since many of these ideas

come from employee suggestions.

The Service is committed to review

over 300 activities such as mail

rooms, motor pools, engineers, and

ADP services to determine if they can

be carried out more cost-effectively by

private sector contractors . In only two

of 18 reviews finished so far has an

outside bid been more economical

than in-house performance: document

disposal in the Cincinnati Service

Center and over-the-counter forms

distribution in Baltimore District. In

1986 there were 82 of these reviews

'011A413~~'_'
in progress, with another 252 to be

finished by the end of 1989 . To make

the process itself more efficient, IRS

plans to centralize the review

site activities such as machine serv of multi- .

ices (10 sites), returns files (10 sites)

and records research (60 sites).

The Service, looking for productiv

ity gains by improving management

activities' is tracking 10 functions that

directly affect the public, such

as examining returns, collecting

delinquent taxes and processing returns. The projects resulting from

these reviews include the electronic

filing project, the integrated collection

system and the automated examina.

tion system, all discussed in earlier

chapters.

CASH MANAGEMENT

IRS continued effort,; to speed up the

deposit of tax payments to save government interest costs. Use of the

Treasury Department's lockbox network for the second year to receive

estimated tax payments from Florida

and Illinois taxpayers saved over $10

million in 1986 .

STATISTICS OF INCOME (SOI)

IRS contributed to the new tax reform

legislation in many ways, but particularly by preparing tax return statistics

for the Department of the Treasury's

Office of Tax Analysis and the Con.

gressional Joint Committee oil Taxation. These statistics are critical for

determining the impact on revenue of

present and proposed legislation .

The Service issued statistics of in .

come

publications covering individual

income tax returns for 1984 and corporate income tax returns for 1983,

source books showing detailed financial data for corporations and partnerships for 1983 by industry and a

comprehensive publication addressing

international tax issues. In addition

IRS published the quarterly SOI Bulletin, which presents key data in advance of SOI reports or in place of

SOI reports formerly published . Finally, IRS issued the individual income tax model for 1984, which is a

microdata magnetic tape file consisting of selected income, deduction and

tax items taken from a random sample

of individual income tax returns. This

file consists of approximately 94,000

unidentifiable records representing

the 99 million returns filed. Tile primary use of the file is to simulate the

administrative and revenue effects of

tax law changes.

DIRECTOR OF PRACTIC E

The director of practice administers

and enforces regulations for individtrals who represent taxpayers before

the IRS.

In 1986 IRS published new regulations requi ring continuing professional

education for enrolled agents, individuals who~ after passing an examination

on tax law and administration, have

the right to represent taxpayers before

the IRS and the United States Tax

Court . Enrolled agents must have

completed 24 hours of tax-related

courses by January 31, 1987, then 72

hours in each subsequent three-year

period. There are over 36,001) enrolled agents, including 1,916 who

passed the test in 1986 .

The Service also began work on

uniform standards of care for tax practitioners who advise their clients on

positions taken in tax returns . The

new standards will replace divergent

and often conflicting criteria for the

different professions which practice

before the IRS . When in place, these

standards will provide guidance to

practitioners, taxpayers and IRS employees about the type of advice practitioners may give without concern

that they will be subject to discipline

by the IRS

.

In 1986, the Service took

disciplinary action against 117 attorneys, enrolled agents, enrolled actuaries and others for violations of the

regulations.

LEGISLATIVE AFFAIRS

The legislative affairs division nionitors; the progress of tax and any related legislation which is of interest"t

the service . The division develops .

.'

legislative proposals and coordinat -s

with other service activities in the

drafting of legislation, prepares and

monitors plans to implement newlyenacted tax legislation, and develops

testimony for delivery by IRS officials

before congressional committees. At

the close of this Year, the division was

tracking nearly 130 bills, and had

developed or reviewed a number of

legislative proposals .

The division has been working with

the tax reform process since 1984,

and during 1986 continued working

closely with the tax committees in the

I louse and the Senate, as well as the

Conference Committee, as the tax

reform bill moved into its final form .

Tax reform was not-the only concern of Legislative Affairs in 1986 .

The division also coordinated preparations and follow-up activities for 23

congressional hearings, handled 41

final and IS draft General Accounting

Office issuances, and answered nearly

liptio congressional telephone inquiries and over 8,400 written congressional and other requests .

The division issued the second edi .

tion of the "Guide to the Internal

Revenue Service for Congressional

Staff' and delivered the third annual

congressional "kit" of tax forms and

publications to nearly 2,000 congres

sional offices nationwide. They issued

legislative fact sheets as needed on

such pertinent topics as the provisions

of

the Consolidated Omnibus Budget

Reconciliation Act (COBRA), and

published the first Legislative Affairs

Update, a means of sharing information with field and National Office

executives .

~Amw~=wov 'wo.--r Try

)Mw~*Z0~~

COMMITMENT TO

QUALITY SERVICE

In keeping with a serious cbmmitment to improving quality servicewide, the Commissioner established

Quality Council, composed of the

associate commissioners, regional

commissioners (North Atlantic and

Western) and ev officio, the assistant

commissioner, human resources and

management support and the execu .

tive secretary During 1986, IRS con .

ducted extensive training of

executives and managers in the prinei .

ples of Dr. Joseph Junin, a noted qual .

ity expert, particularly the Juran

Trilogy : quality planning, qualitv con .

trol and quality improvement, and his

definition of quality as fitness for use

and conformity to specifications.

Dr. Juran gave one day of a two-day

seminar to senior executives, and

Florida Power and Light personnel

with IRS people from the Ogden Son,

.

ice Center led the second . Both Fl .r.

ida Power and Light and the Ogden

Service Center have successfully applied Jurans theories . Selected facilita .

tors from each region and assistant

commissioner area then attended a

two-week team leader and facilitator

training course taught by Florida

Power and Light . In addition all candidates in the Executive Development

Program receive training in the practi .

cal applications of Dr. Jurans philoso .

phy.

Training of employees is but one

aspect of the commitment to qu6:ty service. IRS adopted five quality prin.

ciples as a polio), statement which, in

summarY, address a quality climate,

product and service quality, respon .

siveness, the quality improvement

process and evaluating systems con .

sistent with and reflective of these principles.

M-~ w wtc~~ln;. 29

EQUAL EMPLOYMENT

OPPORTUNITY (EEO)

The Services concern for it,; employ .

ees and applicants is evident in its

EEO Program. Not only did the in .

crease in the overall numbers of

women, minority and handicapped

employees in the Service continue

during 1986, but EEO Program admin .

istration was itself advanced in three

areas: training of EEO Program offi .

cials : automation of certain EEO reporting and monitoring process-, and,

establishment of four regional complaint processing centers

The delivery of timely and relevant .

training for those IRS employees who

serve in full-time, part-time, or collat .

eral duty EEO positions is the subject

of a special initiative . During 1986 the

IRS published seltinstructional mate .

rials for managers and EEO program

officials and the newly designed class.

room materials for EEO Counselor Training.

As part of its streamlining of the

administrative complaint process, the

Treasury Department established four

regional complaint centers. The cen.

ters, located in Washington, D.C. ; Chicago, Illinois ; Dallas, Texas; and San

Francisco, California. will provide

complaint processing for all Treasury

bureaus located within a defined geo .

graphical arm The goal of the centers

is to reduce the time required to proc.

ess a complaint of discrimination filed

against the Treasury Department and,

thereby, enhance the credibility and

viability of the system for those em .

ployees and applicants who may have

a concern about discrimination . A

significant improvement in the quick

processing of IRS complaints has al .

ready resulted from the delegation of

certain complaint processing authori.

ties to regional commissioners, regional counsels, and regional EEO officers .

In addition, the Service completed a

study on providing reasonable accommodations for handicapped employees

and members of the public under

Sections 503 and 504 of the Rehabili .

tation Act of 1973, as amended. The result was the approval for clearance

of a new Policy statement on reason .

able accommodation .

In 1985, the IRS began a two-year

Pilot Program with Historically Black

Colleges and Universities (HBCUs)

Pursuant to Executive Order 12320.

During the pilot, the IRS provided, at

no cost to the host institutions, in .

structors in accounting and incom e

for seven institutions and over

1260 student-;. In 1986, the IRS de .

cided to continue the program which

relies on funding provisions of th e

I nter-Govern mental Personnel Act and

to expand the role of its instructors to

include recruitment at the HBCUs .

Increase in overall

number,,; of women,

mi iron 0y and

handicapped

emplclyees continued.

%7151 V1.71
30

TAX REFORM LEGISLATION in order to publish Service position

CHIEF COUNSEL on additional significant emerging tax

I A lar e role in - f c nsel continued to

Tire office of chief Counsel

functions as tire legal counsel to tire

Commissioner OfInternal Revenue,

represcuting the Coin joissioner tn

caseafiled with the US . 7hx court.

providing legal advice to IRS

personnel. preparing ridings.

procedures and regulations to

provide guidance to the IRS and the

public and advising on tire

administrative aspects of proposed

legislative changesChief Counsel p aye a , issues, C e on

the development Of the new tax re- identify issues for publication from

form act . Attorneys from the legisla- sources other than letter rulings and

tion and regulations division and the technical advice memorandums, such

employee plans and exempt oiganiza- as submissions from various prof4s:

Units division participated in drafting sional and industry associations for

sessions, reviewed and commented on requested guidance and tax articles

draft legislation and committee re- from a number of periodicals and

ports and attended mark-up sessions. journals . Some examples include: Be%,.

Special task forces analvzed all Rul . 86-124,1986-44 IRB 4, which

phases of the evolving legislation - provides guidelines prescribing the

the Administration's proposal, the manner in which the income limits

House Ways and Means Committee applicable to mortgage revenue bonds

spreadsheets

'

and the Senate bill . By and mortgage credit certification are

identifying numerous technical prob- to be applied to meet the requirelems in reform provisions and devel. ments of Section 1201 of the Tax Beoping solutions to marry of them, the form Act of 1986; and Rev. Rol . 86-97,

task forces were able to correct potcn~ 1986-3 .3 IRB 4, which provides guidetial administrative problems in the lines for determining whether a

law. Both IRS and taxpayers will bene- pickup truck or van meets the definifit by being spared from having to tion of a "qualified nonpersonal use

wrestle with rules that would not work vehicle ." in addition, the Service i s

as intended and could be impossible increasingly using revenue ruling, and

to administer, revenue procedures to provide guidAnother benefit of the detailed anal- ance in areas not yet covered by rcguysis of the legislation as it evolved was lations.

that the task forces laid the groundwork for timely implementation of the INTERNATIONAL ISSUES

most far-reaching tax changes in ove r

30 years . Even as congressional delib. Chief Counsel established the new

erations on the bill continued, Chief office of associate chief counsel, inter

a.

Counsel w s making tentative judg national, which parallels the new of

ments on the schedule for issuing the fice of assistant commissioner,

most urgently needed technical guid- international, discussed in chapter

ance, Attorneys began work on marry three. This major reorganization corn

of these projects even before the Pres. bines in one area the many internaident signed the law. tional operations and responsibilitie s

Providing timely guidance on new that have previously been divided

tax legislation is an important part of between the litigation and technical

the emphasis on quality. With assist- functions of chief Counsel . The duties

ance front taxpayers and practitioners, of the associate chief counsel, internathe of Chief Counsel is deciding tional, include advising the new offic e

office t commissioner, interns, which issues require early guidance, of the assista n

and is working diligently to address tional, on tax aspects of international

these issues as soon as possible . transactions.

Because of the importance of regulations projects in the international

area, Chief Counsel is holding roundtable conferences with tax practitiOn .

ers on the status of regulations projeers and the interpretation of

proposed and temporary regulations,

including those on outbound transfers

of business property, Possessions cor.

poration tax credit and overall foreign

losses . This office participated in ongo .

ing tax treaty negotiations, including

those with India, Turkey, the Netherlands Antilles and numerous Carib.

bean Basin countries .

REVENUE RULINGS AND

REVENUE PROCEDURES

The IRS published 211 revenue rul .

ings and revenue procedures in 1986 .

After an evaluation of the publica .

tion program for revenue rulings and

revenue procedures, several changes

were made during 1986 aimed at in .

creasing quality and timely service to

the public. These changes included

revising the way of drafting and clearing proposed revenue rulings and

procedures, and developing a "fast

track" system for publishing the Se,

ices position on significant issues.

Chief Counsel also intensified its

program for developing automatic

change revenue procedures in the

area of accounting methods and peri.

ods. Without the benefit of revenue

procedures granting automatic approval of changes in accounting meth .

ods or periods, taxpayers, because of

the Senice's heavy workload, would

have been required to wait several

months before receiving a ruling on a

requested change . By relving on a

revenue procedure, taxpayers no", can

make routine accounting method and

accounting period changes under the

guidelines that would have been applied had they requested a ruling.

PRIVATE LETTER RULINGS AND

TECHNICAL ADVICE REQUESTS

Chief Counsel acted On -12,500 re .

quests during the yearmcluding

15,000 involving accounting methods

and periods .

The rulings divisions continued to

rule and provide technical advice on a

number of significant issues, such as :

- whether a limited partner has

basis in a partnership interest because

of a contribution of a letter of credit

and assumption agreement to the

partnership ;

*

whether employees participating

in a nonqualified deferred compensation plan are currently taxed on con .

tributions made by an employer on

their behalf to a so-called "rabbi"

trust;

I what is an acceptable method for

Phasing costs of nuclear facilities into

the rate base without violating normalization rules ;

- whether costs of package design

should be capitalized;

I whether the costs of abandoned

nuclear power plants are deductible

by a public utility ;

- and whether the conversion of a

mutual life insurance company to a

stock life insurance company qualifies

as a tax-free reorganization.

ADMINISTRATIVE APPEALS

The appeals division is responsible for

resolving tax controversies, without

litigation, on a basis that is fair to both

the government and the taxpayer, and

in a way that enhances voluntary

compliance and public confidence in

the tax system . Appeals officers, lo .

cated in major cities, meet with tax.

payers and their representatives and

are usually successful in resolving the

disputed issues .

During the year, appeals did a sur.

vey to measure the taxpayers' satisfac .

tion with the appeals process . A large

majority of the taxpayers surveyed

said they are happy with the courtesv

and competence of the appeals offi . "

cers and the fairness and impartiality

of their decisions .

In 1986 the valuation branch, for.

merly a part of the individual tax divi .

sion, became part of the appeals

division . This branch'helps establish

the fair market value of financial as .

sets, real estate, art objects and intan .

gible property. During the year the art

advisory panel recommended adjust .

ments of $16 .7 million, lowering the

value of claims for property donated

to charity by a net of 54 percent and

increasing estate and gift appraisals by

75 percent net.

The appeals tracking system, a com.

puterized information management

system, was brought on line nation.

wide in 1986 . This system provides

the ability to determine the current

status of any appeals case, including

the appeals officer assigned. dollar

amount involved, and statute of limita .

tions deadline . Appeals also launched

a long-range planning effort to ensure

the division's effective-and efficient

operation well into the 1990's while

maintaining its present high standards

and quality.

During 1986 appeals offices reached

agreement in 90 percent of the

29,967 cases closed that were dock .

cted in the Tax Court and in 85 per.

cent of the 37,043 nondocketed cases.

Of these 67,010 closed cases, 19,874

or 30 percent were tax shelter cases.

In addition, appeals closed 4,491 pen .

alty appeal and employee plan/ex .

empt organization cases.
32 i -,% V

3 3

MANAGEMENT INITIATIVES

in 1986 Chief Counsel completed the

implementation of the counsel- automated tracking system nationwide .

The system now gives management

and ' cys the ability to retrieve

information such as litigation due "no m

dates, a Cross reference of cases by

related projects and issues, and various case and management reports.

Counsel started a continuing management education program, providing a

comprehensive management training

program through in-house and vendorsponsored seminars for its executives

and managers .

Based on the successful use of paralegals in "Angeles, Manhattan, and

other district counsel offices over the

past several years, the Chief Counsel

approved a 150 percent increase in

the number of paralegals in field offices. Paralegals will play a major role

in all aspects of field activities allow.

ing field attorneys to work on 'the

more complex and challenging cases.

Rt,gi..

REGIONAL OFFICES North Atlantic

CASELOAD REIIORT- tlid-Athriti.

ALL CASES Southeas t

Centra l

mid-t

skarthwest

W"tern

Total region ,

National office

Grand total

Recruitment and hiring of attorneys

was decentralized to the regional

counsel and associates chief counsel.

An automated recruitment process

gives each region access to a computer data base containing nantes of

applicants for attorney positions, their

law school, class standing, preferred

employment locations, and other information .

The rulings division also received

direct-hire authority, putting them on

an equal footing with the rest of the

Chief Counsel in aggressively seeking

to hire the best qualified applicants .

The associate chief counsel, technical,

and the five division directors began a

program of visiting law schools to

interview applicants and to speak at

recruiting seminars.

CASE MANAGEMEN T

During 1986 Chief Counsel studied

the distribution of attorney staffing

and Tax Court receipts and inventory

among the seven regions . Based on

the study, counsel began adjusting

staffing levels, with increases going to

the southwest and western regions,

and transferring some Tax Court cases

among the regions to increase efficiencyand distribute the work more

evenly.

pending

Oct. 1. 1 9S5 Reccieed '

15.376 13.17 9

13.499 10.41 0

10 .837 11.058

6 . 1) 0 S 9.535

9 .8s .5 9.56 1

14 .528 11.684

36.287 26.48 1

107 .317 91.90 8

2.029 599

109.346 92 .507

I Receivedstatista~ are net numbers, i .e., actual

number of ctu~ received plas ., minus tram,,fers and

adju,stmenu, to prior years~ receipts .

in the criminal tax: area, the midwest region pilot program, which providcs a mechanism for resolving the

criminal aspects of a case on an expedited basis, was extended nationwide.

Cases which qualify for this progiam

are those in which

.

a taxpayer isf.epresented by counsel and expressiis an

early desire to enter into plea negotiations .

The general litigation division also

began studying possible ways of reducing the number of bankruptcy cases

being referred to Chief Counsel . Since

the Bankruptcy Code became effective in 1980 the number of cases has

increased dramaticallv.

In 1980 district counsels received 3,811 cases; in

1986 that number rose to 10,941

cases, ail increase of 187 percent This

now represents over 36 percent of the

total time spent by field -attorneys on

general litigation cases.

Pending

iNsp.-d Sept . 30,198 6

12 .619 15.936

9,469 14.440

10.136 11.759

6.515 9.925

8.238 M20 8

10.074 16 .138

16,778 45 .99 0

73.829 125.39 6

306 2.32 2

74,135 127.718

Court

Action

TRIAL COURT Decided in favo r

CASE RECORD of the governmen t

(Opinio- e .dtrcd- Decided in favor

refund litigation )

UNITED STATES

TAX counOpINIONS

for the government

19s.5

District

Goto-i

1 9S6 198.5

Number 41 46 16 7

P-ent 66 .1 76.7 65. 7

Number i s

taxpayer and partially Number

of the tti.p.-

Decided partially for

Total opinion,% 5 .0 9.1

Tota l

111 1 6 viss 19st,

"4' - - -(is 3 2 H

71 .8 65 .s 72 . 4

64 90 S'- 101

25 .9 22 3

21 2(, 24

5 .3 S., 5.3

62 60 - 1-54 39 3

luhhhed, Summary & So 11 Memorandum &

Tuee ease bench Regular beucj~ "Itinito. opinto"

P-liling 1-tv (1-devii.. line) 7,Ts5-Tsc, 19S5 11186 198-

5 Decided in favor

of the governmen t

Decided in favor

of the taxpaye r

Decided - Role 15 5

Nli~.elhureota,

Total opinion,

44 1

53.4 4N.6

30 I s

4 .5 3. 1

2(,S 339

Total

198 6

351 813 705

3') .9 50.8 45 .7

54 6 1

.1 . 5 .3.4 4. 0

.3"6 614 664

.116 453

40.4 37 .4 45.()

99

38 .4 43.0

W2 119 113

1 .7 10.9 11.6

693 663

Four outxianding Chief Coullsel

attorneYs were appointed us visiting

Professors at leading law schools.

2 3

percent

-

1-9 .1 18.3 15 .2 22 .9

1'ercent 4.8

Number - -37, .1.5 4

pt,rttau 53. 7

Number 2 6

Pere.to 3 .8

Nurnher 1-75

Percent 39 .7

Number 20

percent 2.9 7 .4 7.3

907 NNO 1,600 1 .543

CONTINUING PROFESSIONAL

EDUCATION

The New York Uni,ersitvARS Continu .

ing Education Program ' Pleted its

sixth Year in 1986. Ten graduate-level e" m

tax law courses and four advanced

seminars were offered during 1986.

Full-time tax law professors, selected

from the country's leading law

schools . teach the courses and semi.

nars . During the first six years, 2,809

Chief Counsel Professionals com .

pleted courses and seminars in this

program .

All states requiring continuing legal

education for attornL

-

vs who want to

maintain bar certification have ac .

cepted these courses and seminars in

fulfillment of their requirements.

i-- Ag zp-
17-11~x~ve,(l`,- 3 5

ACADEMIC INTERNSHIPS

AND EXTERNSHIPS

The summer of 1986 began the fifth

year of the professor-in .rLsidence program in which two professors each

spend a year in Chief Counsel's office .

During their residency, the professors

provide legal advice to the Office of

Chief Counsel, familiarize themselves

with the varied problems confronting

senior tax administrators and research

significant issues.

During 1986 four outstanding Chief

Counsel attorneys were appointed as

visiting professors at leading law

schools . As visiting professors, these

attorneys teach tax law subjects an

undertake research assignments lea -

ing to law review publication.

REGULATIONS

Despite the demands of tax reform

legislation during 1986, Chief Counsel

had drafted in preliminary or final

form 76 percent of the 426 projects at

the end of the year ; 137 were eirculating for signature or comment . In addition, a number of significant proposed,

final or temporary regulations were

published. Among these were projects

dealing with original issue discount,

taxation of fringe benefits, the treatment of a partner's distributive share

from a parntership, partnership and

church audits, and the treatment of

certain stock acquisitions as asset

acquisitions.

Chief Counsel also published scvcral major projects in the tax exempt

bond area, a comprehensive set of

temporary and proposed regulations

on various technical issues under the

employee benefit plan provisions of

the Ta~ Reform Act of 1984, and final

regulations on procedure and administration relating to the classification for

federal tax purposes of investment

trusts with multiple classes of ownership.

LITIGATION

The litigation function of Chief Courtso] continued to seek ways of closing

the existing Lax shelter caseload,

which now accounts for over 50 per.

cent of the Tax Court's inventory. The

goal is to dispose of these cases on a

fair and reasonable basis as quickly as,

possible .

To ensure that oases having broad

legal significance or large tax deficien .

cies are given the attention they demand, senior attorneys in the special

trial attorney program, international

special trial attorney program and

industry specialization program han .

dle them .

INDUSTRY SPECIALIZATION

PROGRA M

Over 100 employees from several

areas of Chief Counsel participate in

the industry specialization program.

Using their expertise in the practices

and issues of 17 major industries, such

as pharmaceuticals, banking and railroads, teams of attorneys tender ad.

vice to the examination division and

its industry specialists to assure that

issues arising in specific industries get

consistent treatment. Attorneys were

reviewing 86 industry-wide issues at

the end of the fiscal year.

RECEIPT AND ]'ending Oct . 1 . 198 5

DISPOSXL Received during yea r

OF GENERAL Dispota,drd

LITIGATION CASES Pending Sept . 30.1986

Court

20.32 8

26 .103

25.746

20.685

SPECIAL TRIAL ATTORNEYS

The special trial attorney staff expanded from 22 to 29 with the creation of one additional position for

each region to be devoted to intertiational cases. Special trial attornl~s

handle the largest, most sign Witt

and most difficult citses in the country.

The program won some important

cases during the year, highlighted by

the significant wins in Gu(( Oil Corf).

u Commissione r

EMPLOYEEPLANS

The Lax litigation division is develop.

ing a specialized staff to expand its

involvement in the employee plans

area. Its objectives are to represent

the assistant commissioner, employee

plans and exempt organizations, by

litigating Tax Court declaratory judgment cases and by coordinating dis.

trict counsel and Department . of

Justice employee pla

'

It litigation . The

special staff also provides litigationrelated advice to the assistant commissioner's staff, district counsels and the

regional commissioner,%' staffs .

Norr-courr Want

1 .503 21,831

7.316 33.41 9

7,263 33.009

1 .556 22.241

All Tux Couff Q..

UNITED~TATES

TAX COURT CASES

On th oatri&

of doll-)

Pending

Oct . 1 . 1985,

Tax, and penalties

Ntunber 1'. Dafof" disynne rained

72 .836 $13.777.406

Rucci-d 48 .787 5.892.338

Disposed 37 .937 3.340,597 $7.58tS64

Pending

Sept . 30.1986 83.686 16,31-9 .14 7

'Includes incomc, PI-fits, estate and gift and

declaratory judgme.t cas _

'Adio,aed to reflect U.S. Tax Court figures.

A91

i~prj

ABUSIVE TAX SHELTER S

The tax litigation and criminal tax

functions continue to assist the IRS in

its effort to identify promoters of and

investors in abusive tax shelters and

to bring the activities of the pro .

moters to a halt through the use of

injiunctions, prosecutions and penal,

ties . Pre-filing notification letters were

sent to investors with information

concerning the tax ramifications of

their transactions with specific tax

shelters. Certain Promoters challenged

this procedure, hut through the efforts

of the disclosure. litigation division

the government prevailed in both

district and appellate court proceed .

ings on this issue. An appeal, however,

is pending for one adverse district

court decision .

Tux C-_

Taxes and penalties

N,,.b,, in Deter,

o.fenses di~l re rained

11 .255 $37,61 3

14.587 42.125

13.814 40.396 $17,384

12 .028 39.34 2

In 1986 the number of docketed tax

shelter'cases increased to over 50

percent of the Tax Court's inventory

in response to efforts by =imination

to move older cases forward for reso .

lution. However, the shelter litigation

p roi.

ect approach adopted by Chief

Counsel has maximized the most

efficient use of attorney and clerical

resources, Approximately two-thirds of

the docketed tax shelter cases are

worked as part of a litigation project .

The number of litigation projects has

more than doubled in the past year.

Each project is managed by a single

attorney or tearn of attorneys, tvho~

together with it key appeals officer,

establish a uniform settlement posi .

tion . The project attorney is also re.

sPonsible for developing the litigation

position for all investors within the

particular project. This approach en .

hances consistent treatment for inves.

tors and more efficient litigation and

resolution of cases.

Proseention coses reeciacd

ft,- -intinal in~tigutnoi

MATTERS

RECEIPT AND Total up . . d

DISPOSAL OF Total clo,sed

CRIMINAL TAX GO-0 -d-li.ed

Department of Justice declined

U.S. attorney declined

Prosecutions completed

Opird .n.

Pending Oct . 1 . 19S 5

Total requested

7but] tendered

['ending SePt . 30. 1986

3 .52 4

3 .24 1

49

17 1

295

2,72 6

19

58

5 5

2'
36

A .tion

APPELLATE COURT Decided m f.,.r

CASE RECORD '

LITIGATION INITIATIVES

Efforts have continued to enhance

previously implemented litigation

programs in the general litigation and

criminal tax functions . In 37 of the

district counsel offices, attorneys have

been appointed special assistant US .

attorneys . In addition, eight district

counsel attorneys, designated by the

Attorney General as special assistant

U.S . attorneys in connection with the

Criminal Trial Attorney Program, successfully prosecuted 37 criminal tax

cases resulting in pleas or convictions

in the United States District Courts.

. oftheo,vernatent

Meid,,d in frivor

of the taxpayer

for the government

C."M

qfAppcut~

1985 1986

Number 328

Percent 84.8

Number 45

peteem 11 .6

Deeid .d partiAly for

ui.pstyer muf pm-thilly Number 14

Totril pinm-

- R.fund-im imd - -.a --

pereern 3 .6

387

428

Supreme

Court

1985 1986

2 3

875 100.0 7!54 0

4 7

9 .6

1 4

2 .9

489

- '25.0

2 4

GENERAL LEGAL SERVICES

The general legal services division

provides legal advice on the federal

tax refund offset program, which provides for collecting debts owed the

federal government, such as federally

insured student loans and child support obligations assigned to ! ;rates for

collection . The division also helps

defend lawsuits challenging collec .

tions under this program . General

legal services successfully defended

IRS and its employees againstactions

filed by tax protestors and worked

with the Department of Justice t o

an ~ (31-hig,

convince the courts to impose penal

ties, fines or sanctions against protes

tors for filing frivolous lawsuits. The

division continued to advise on standards of conduct and ethics questions

involving both IRS employees and tax

practitioners. in addition, the division

provided all legal advice and litigation

support in the area of government

contracts and acquisitions .

09 Re-itus Reeekedstatisti-mmtnumberi; . i .e.

actualnumberofea-receivedlAmor

mima irumfers and adjwrotents to

pn -3ma- reeeipts .

~Pedi.9

I

;;,4 3 7

STATISTICAL TABLES

Tible I.-Internal revenue collections

1)), sources and by internal revenue

regions and districts, states and other

areas 38

Table 2-Internal revenue collections

by sources 4 3

Table 3-Internal revenue collections

by principal sources 4 4

Tible 4.-Amount of internal revenue

refunds including interest 4 6

7hble 5-Number of internal revenue

refunds issued 4 7

7bble 6-Number of returns tiled 48

Tible 7-Returns filed, examination

coverage and results (1986) 50

Table 8.-Retums filed, examination

coverage and results (11985) 5 2

Rible 9-Additional tax and penalties

recommended after examination by

class of tax and by internal revenue

regions and districts and other

areas 54

Tible 10-Number of returns

examined by class of = and by

internal revenue regions and districts

and o ther areas 5 5

Vible IL-Returns examined by

examination divisions 5 6

7bble 12. -Examinations resulting

in refunds (Excluding claims for

-refund) 5 6

Tible 13-Results of collection

activity 5 6

7bble 14.-Civil penalties assessed

and abated 5 7

7hble 15-Appeals division workload

not before the Tax Court

(Nondocketed) 5 8

7bble 16-Appeals division workload

petitioned to the Tax Court

(Docketed) 5 8

Vible 17-Requests for EP/EO tax

rulings and technical advice

(Closings) 59

Thble IS.-Determination letters

issued on ERISA employee benefit

plant 59

7hble 19-Numbers of exempt

organizations returns examined by

type 59

Tible 20-Number of active entities

on exempt organizations maste r

file 60

74ble 21 .-Disposal of exempt

organizations applications 60

74ble 22-Internal revenue

collections, costs, employees and US.

population 6 1

7bble 23-Costs incurred h~, the

Internal Revenue Service by

activity 6 1

7bble 24-Costs incurred by the

Internal Revenue Service by office 62

Thble 25-Personnel summary 64

7bble 26.-Chief Counsel cases

received 64

7bble 27-Chief Counsel receipt and

disposal of cases 65
cwnmot-r VO

Table 1-Internal revenue collections by sources and by internal revenue regions an d

districts, states and other areas

(in thousands of dollars)

jr,_,narnano-71-1d dianddit, aurtina

ano' ban ....'

ShIg" ifitiftIM inditconatJ th to, 1

other . ft war .) ..

ithtnan an Wit.-- 1

WHO Sloont, total . .... ... .... .. .... ... ... ... ....

WAtrantic Ratibon . ... ... .... ... Ai .

(S. (F)

A~g- No.)

B-n

BB=1.. . ......... .. S. W

H

.... . .......

P-,on-__ W

....... .... (RI,odo Wiincil ...... . ... .

I&Athantic RalliOn .. ... ... .... .. ... . 6'6"*'* ::::~'

... .

...... . lm.'Ylin, P_0 Fo

.... . ........

Fk.91.n .. .... ... .. ... ... ... ... ... .... .. .... ... .

Can" ""I

Cjw~'d . (it.1... .. ..

olitoll M."prI) ...... ........

lw-~ols . . .. .. . ....... Ondrom) ... ... ..... M LWWOe .

. ... ... ... ... .... ... ... .... ... .

q

F.,go D.k-)

H.IOMha

St. Louni .

.

.

S . P. .i

. (b) ~)

S

..". to. ... .. .... ... ... ... .... ... ... ...

Waa,em Reg on . .. .... ... ... ... .... ... ... ... ... ... ... .... ...

A.-

B . . .. ovno)

HO'OII~~ (H"") .

Pon II =O11o!,I".r

S., onto

So R-;~

San JM o) b.

sonFlo

Fooe,al Tw Debovis

Gasol M no

W thhdd -as

I _=F!.

Cloannita-. I.,

ano ol-A,, Fm, inxi N81Y ......... ... .

Eanw- Cr=s'-"" ........... .'Vd-'a "o" ." a,

I.Wwoal I

.... taid ""Inan"....

I—W IICOMO Mx 11.1boant UnamPirryinart

, __ =_,-kai Total IthNW Xt~aifthheid :111 ninnnan, I---

collan,tiorna ECA I FICA

(1) (2) (3)

:141

13.: .

. 1107 56:' 1

6,978,392 368 .9% 6.MO 4,19 .69 5

2.N"2 :'117 W 672N"'54' 241l

14,862A96 1,015 .90628 13560,415

768 .7 9081,548 11' :~14

'5537 107 .1~ 939651

.953 2.405852 14,989614 17737 ~342,~ ,2,2,4, :G690 7, 44,901 .366

~4 145

22~235:252 Z)4,839 2' 4U~72

s

4. ~':241

99 476878

112

I'S " ~3 :7 3.115'

263 900 .669

5 9W 667 768 4 . 6124,91 7

9w

1

: OBS.963 N17'30 809

NI7:7 3 122 4 117:712.

.,'72 .3 ~ 3 65 29 :7.04 519:

23 B52.41),i 2 .8776,741 20193 7. 1,,: 1118:55

12 11. 11.112,

07

51 7 1 .3- 79 12,90211

' .33~1.,5,, 4 2,-,217

85.114,7116

15225,370 2,1158.878 13,992030

7 :27 ~6 5793!31 1:368 374

1 '

.

'

67.320 41BWON

17,017 .223 2,0839695 1 Nfl :870

3 1264,96,

23

2,

A =6 E13 1 sl" :-971

4 3~8199 0

13 Is 1

2:"

'

:~2

3~2~'.4 353

' '102

'7 7:33 71

in, 739.2.131 ."'

14.UO 316 2:011 521 '4'3 21 88~ :025 111 W

21

s"Fl . 1205 ZI-II- I 31 .713~426

15859,766 1 .230.OB201. 13,973.242

6 1 7:311 K2 ~411 1

2 :.0 825,105

J'O

11115,3iS.014 12.912,202 88,721, 65

.0 :W4

2

s,1 . 15 33289630

2 qjg 41 ~542 511

5 1.3

1

:1 '3'

'

1,182.2 052,974 .949 6 ;igll

l2NI .IW 1,88 35" 10478 .595

3~031 3 . . 1 9.1 4.~V

2X3"

14095,550 1,563,957 12.079212

59, .,31 5 65

's`,2ss,2,a 07 a" W..2 .833 79,4298.9181

2' :36t 133970 E18,428

2 14s

m 675 42,2615 10 7304~072 W '

26 229,941 2,633.3 21 771 .314

099 120 :89 143

2, :s.' ~ '7 l ', 1,428'0 6'171 049601

10 Na'N" 1,17982,Ns 4 A 7 .746746

3 62

5 9~~ 821)

.11 3

3 .113:334'1 362:3M 2

64,, W 5~4~07 .665

47.

.3

. 103.7"

'2'8'17

1,576,30 567 302,

2,025,229 211,661 759 .154

2:337 3 174 878

22'1~1

63

Is III ' ' '

. OD3

4 (324 7 1221 2

2,773 ,.903 241 45.23

IIg,2p 171 26,319~83

"7 686, 613265 8.007,6052

1 :4 39

6~" :'S" ':7' 7'

. I ,

1120 1 147 si 1 . 3'11 .1 6

13.131~111 749 :930252 2,OD6 499 1 N ,

9 98 B64,442 10,767,713

1,491 498 337,962 3B2 593

938:9B7 14629 924.358

7 31

35.93

5608 5

205092

(5) - (6) (7)

11 7,83a,91 3 6.3'3'g13.= 3,03 0 2., :"sn

win12,

7 2AW59 1 SJ61~378 10

398434 1 ~480 .672 US!

211.11 3479,557

3I N:1:36T Vs 68 ,

2 IN 7,710.231 3 41

420

.

205 .497 715,966

2,49 Z 12 11 137 4

1 563 :37 7 37. 74.625

.

5,734

569,200 1,898,272 42

399419 42 1,301

16,393,897

2 .79 18 .125.201 320,73291 :617

65 " 2 4,219852 2,4 1

2 7 712.096 (m

592 '1 507.156 2,617 :

27 234 :311V 30 N 5262

3 .513,928 1 ~5 7 35"

1572,610 30:9712 92111.'412

2.465496 10,124, 64 227,33172

1 52,677 1,910 . 6 9

0" .3,40 WSIB. 434,121

2 ~'!)w 1 617566 M ~3'

1 . 51156,250 2, '92

1 ' 936188 3893,58 '2 :2' 8 921

2 5569 9,325473 899 2 1 M7 1 4.472

B 026,~6 6: 4;3 270,212 :MN7

673956 I,N5,749

1 .71:70 8, 614s 4 7 -1 1,279

1 610 IM 2W 62,W3

S1,111

4

1 1 3

1

11,5.5,145

633,1 17 10.218,950 :2'

3,1378 12~ 6511 16,381,31 7 5 3.

1 853~ 15 79 591 28 .240,W 9

70 ~596 .636 12004,214

1 1 AIM32~%'7 1:33'63 5'0~9 26~ 6:2 815

4.585,599 12,057,715 1,124,351

2M:~45I 46

167 27,4677~M .

:102 .1107

1,085,5W 3,411 .5 5.959

306 .01 731. 5E 0

300 ~986 mi

i UN 5873

62745 .

'861 2:9N .102 121261,065

.2M 21~2~6"~ ',422' 1 '.7 6 026

. ' b1lI 1

16,56218" '11'.321

~77,~2 1 58Zi,222

5:, 2 .'.~9627152 7 .684

49B.11258 Ul 76 1

4,706,310 16 M3 242 40238

1 .6.058 2, 1

2 :61 71 '~: I's 5

'2 :jM

2,314,332

1 :4 5'158 2 77 362

1,431:6035

4

41712~4471' 428 2 .057,287 1 24

1,229,563 3930 6 203 :2W

21 .157,95 1, 11 2. 526,979

27B 4113 213..4~~ .. . Q2

3 1 :4WI~2 4

421 :212111 :92 9

4,0130 676

1 1 .~ 772s':1'1 1 696~~ (40

14~811B 1"52 N,273 ' B .N20 14:21.5

6

2:11 71 ~ 52 1 .071

2433,978 13 . 4:7522'3'0 :3%2:~W3 '2 274 32

':26

.

2 .7":w 9

2 035 . M2 8,522.113 125,392

924 35-8

-

.. 1,111 - :38

4

1 :74'~

26

!".7 3 ' :'12

79,126

1 13899

20,957

327 .392

W 624

~22,

0,153

26 3W

43827

385:582

244

121731~161

094

146 OM

172,1 .8111 4

99

SIS'm

5

5 17 0:31"5

50 .192

124 .929

28 6W

IN :5118

n 324

' . 5':17

160,153

217,7W657

239 1~

BO.796

42,405

28.5,16

90,5"

7 ~

399,413

39.490

7,435

9,3m

89253

29469

134,030

177 .965

69397

6011.685

51,324

27~~01 1

39

181 .524

I 1 ~13

03.W

M,150

49,953

2444 57

2,7

766,736

10 4N

17697

569 8

137 .373

26,211

213 .848

30 ~

47,079 8

621

95,270

M,876

103,181 126 .907 152,0B

-

35,9i3 35 913

56,08915 (156085

03295) (103,386)

Total. 11 "a- not anina- abonn'

B9 604,350 7~:l 1 :116 77:2 3" 6 248 .BBO :4.0

I Cold.-.. ........... ...

. 'I ~13 s

" ~5'554 3'1 Z4.:. 1- :28~1131

111'nols ._ 46 IN .0117 617 1. js~~...

7

Nar~ York 10.9B7 .735 74,073,778 1 :31570 61 .987 .45B

-i-

'36 '2,38:,7, 61 3614,42, 30

.813 962 3 , 64,6`8 378,272

P. A XN0.076 3 B.

';N:7,73~' 22'5 .V2'22.' 3. 41~1 :1 526 3 107, E 57:U4

3

8.7

..... ..... .... 53,598248 4,7840 03 44 929 9 .573,918 713 12602

090.389

.

. RT

Table I .-Continued

(in thousands of dollars)

'-1,- 1.*' I Z. -1 dratillut, Marna

napmainiflot! by

total.

for offint, auto* ah,nal At boboon .=..) E-1.

to,

Gift total of

'A. 15, ""1", 1 :

25 iorr! 33)

tv': 39

A1111,01 Torms IDititill"

Total A P

(10) (1

Unit"' 6m 1

.1.1 . .... ... ... .... ... ... ... ... ... .

N,!~Afl.nfl- . .. .. ... ... .... .. .. . ... ... ... .... .. .

. . ........ . . ....

Mini baltle Rollin .. . .. .... ... .. ... ... ... ... ... ..

or .

FO_Puenorco"

.. ... .... .. .... ... ... ... ... ...

R

~A=)

1

=bor~ : : : :: :: (;=' '

J . (m'.

N-Ale ..... ... . ..

... . ......

Ni- Uieans,.

Cionfiral Reglo, ... .. .... ... .

(d ) C;m',,d

D""

..... ........... ... (Soo (d) -

'ZIO . . . .

. . . . ..... . (M .npr)

='.!.

Mid b

. .:.: ::: ' : 4. ~ P~,kort,., g

Von ... ... ... ... .... ... ... ... . I... .. .... ... ..

A=-n (Swh Dakota

C= (See (b) bol-I

2%0 13o~~ta ;

H~emke Ww"I ~

S nara (N-V

Louis

sl p.. ..... ............ . . ... . ..

S S,,,ngfielcl .. . ... ... . (b) Mim) ... ........ . ..

R

A

,:!!on . ... ... ... .. .... ... .. ....

A .In . ............ ........... .....

&,"IM ym,,g)_

D o

(.111 - rr_~ :: :: : (,I ::: r~~o tio .)

Hougon .... ...... ........... ..

. (so,I (It bon 0

ahonraQty

phoe.-_ ......... .......... ......

siin ak. Ct~

fttbi . . . . . . . .

,leloorm Raglon

... ... ... .... r<on

A.1,o, JA"Wol,a) .. ...

.. . ...

clahl) Horold,

I=Q.

n

6ogion

S.-reln'.

Unifirtribut-

=a] Ta~ [~ Jub ;Nas .. ... .....

. . ...... ... . .. W, .Co I, -,bW .1 I,d . ... .FICA uNhl,

-no

_r' I. lol -ow" - .:'Ise funt

"" .17

'1541 :079

35380

226161,

24

'21 N2

77

767

76502

18,666

29 im

~6518`b`

13 SIS

33.61 9

723

201'2:117 N

IN 34~7

77

:0

10 .7M

96491:76"57

10"s" 66,791

37.488

1292.4163

41 .:Os9'6

A 21

78.714

76,189

529,122

IN M5

'12"887 1 9 :'

'w .666

N'l

729,415

6,173

265.518s!

15~063

65.9.

'4' 34803

1 js7

53,392

53 .884

U7,362

12 ~365

3 .777

18 .931

24~1 .311

71,714

113.317

B8,887

6639

28595

So 06 8

1 .2N .416

4:~021

St

2EI,316

219 '12

.:1 1 2

3NO17

57999

89 .868

12,5 :1.

84.230

-

380 .53is 3316n.086 $ ..?Aas ".460 2,003,426 88 9 309 768

42,658 1 1 54

5 61,065 980

47845 1 332,'5SI W,373

: 371 ;59 01 ~0,614

35,1 75388 327

73 22.902 3 380

105 2 188,671 '714~3111, 58 :310 961 757 0

5~ 36 'IN 39

476 22.Nl 98030

60.381 4 .737, 31 1 .013,705

3,252 25.278 419 .961

915 '2 37,029 205 .130

49 206,022 2G5 176

'

037

.2:'41

15 = 1 44' 9' s 2 500)

5:309 663819 1

.

7.3a2 262,633 512212 23~72563 555 1,245,257 89.733

1:611 S 6 952 .678

~,. 46.141 61" .9"

10

002 256 4N 36699 3s :

.141 210~W5 4 Is 1. 6, .501

3 .653

6 .157 3,29 1 :17 108.957

127867 9

9

IN 5B 621 445 131

2()2 22 B4U 15 3 B 2 '1 4

1 523,171 131~5(Kl 1 .

1

1 4

1

4,

4:4 2W 380 1 47 .497

0 .154 551,523 .523,140

3%592 205,61 3

6:0 3 191738 :12 54 2U

3387 520 351.966

3= 5611.272 222,815

749 1,43.2 .286 686007

95" 2..~2-

37 16 3,914j'7" .7

516 41 385 3'479

1 %1 s~7 1,117,889 243,356

756 13,375

315 134 23133 ~92

518 53:M7 5

4'3 0

', :652 ~1

.1 :s44' 1 13~77'94

7

11 NBAN M6 .324

7 391 :41 1 .'.511 13,7W

171 .521 23~584

46,090525 53S. 2

858 N .213

11 .839 570347 65,7282

177 54 .6~

5

3

14275 1 .5.147 :%; 131~1~?13 2301

2

.2 :031, 9 679

3 :089 037,147 3.'7

2,461 4 ;KD90 5.777

96 52~012 m

1 15 290,750 7 1 2,Wl

7 3 212, n 11111

22.500 464

400 453 700

2.6t1t 6978 ,m

:4.11 1 683 86 : 6 40'8

2 46,204 B66

24,387 14 4

1'

12

1 :1.4.2 1434

3~2719 V7 48 B 1 :474 1 7 I

IN

948 45.826

742 24 2DO 4~s2:71.1

5 .W2 264: Is

O' l

308 :tli7

Total . for Urt. not atioarn Ab-

~e~ Pit- t,ania ....... ....

T,.a,'

7 1

675 293

398843002 ss 3.'101:476,11 1 . 0 N:91 214, ~g

217.665 9.972 1,592~894

2 '141 245,817

493405 1 '9 35 69s57 :3551 4

(12) o3)

3,731,360

2081~17 1

27

96B

69,75 8

8,5582;

2.

379

"911 :121.

1,275

1127

720.Ng

248,047

205,129

205,175

240 144"6)

7,073

592

185969

53

296, 45

25:11

818

~2 :3 5

218

905

108,165

18021

89577

45 W 5

1 .421 729

148.762

42 .435

5.622

1210,059

685432

Us2: 01.

460

233,175

l3.W2

457

13 171

0.891795

93673

7

22:83"

17

4~3'N

39,279

377

1,411

2231

323 1

:295

5,627

678

2243

630.842 9

60

W,

7~447

so

41,131

40316

16376

469,105

2.1 :11

2 113

Wi- Baer Tobbin-

.15,196 IISDO.92 1

42.114 3.527 69'65.3 1

12

5030 13.585 1.76 1

674 20351 5,6 5 3 j 5

1 , 34 1 21

5 6 .5W 1,7W

17,764 -

-

"

W

.118, 32 873,7BB .452 11 1~14U 14 1 23.~11

- - -

1 123

463 41892 2 852

947 ~M4 2 .13158

164 4

2 .059

"506

7052 856 .440

- -

72.9114 308,165 31197,393

31,249 79.6189 366,570

36 5

1,334 11 70844:'.21

513 1057528 2 073

38.052 79.66732 70,91 6

1w

3

41 .9a3

1,739 753

8

7106 93,574 529.7" 607 N244 146 2 220 2.629 271

3 :977 22,368

501 12.253 26.NI

528 47 502.256

33 358

11,11211 275,3316 1,185

-

9

4,24 5 .W3

3 3 59

4

2 4 591

1,669 15514

219

2,IN 110.543 -9 4503 1.992 10

. 1,053 -

70'1 311'94 693

s2

4.555 21 .888 ST3

11

3 -

7 491 25

1317 :549

~,751

96

41'5

57

192,907 240,7441 1,030

4

1 .131 8 3

21

I N

2

1 1,11, 21 0 111 8

375S 5:3m V~

28 20,326 1

31:.'8'3 1: 71 :1 777

132.04 6

5, 7171 2

1~1 1101 1.1 183,

2 :'71 4218

195 4()5 131 309 43,313

a 2827

259 8892B '98

221'9 :712 57U 3 6 01" 41 :s70

IN 1231 :.

7 N'

20657 1.757

58,873 117

7~ 151 O 2"m

174 29 598

-

2

122
Jam z=ffk- pj,rmTable I .-Continued

(in thousands of dollars)

in_, .g-. end d

W'=h`-; ha-Ilot .1.1 ehone. -0. of let,W)

T-1

M ... 1W .,ent, --itte

It" 5-881 "I'l

AtUndi- Region . ... ... ... .... .

A.g .-

D M-hutM)

B :: ::: ::: :

8

..... . ........... .. .....

Ma,hwan .. ... .. ...... S . M below

P'n,pno,,W, (New H=Mh,re

m P-do ..

(Rl- W.nd)

I&AIIS, c on .,: ... ... ... ... .... ... ... ... .... .. .... .

SW_od'a . _(M-Ia- d & G .)

ldrd,n 0

N-l.

Phthcteldi~

PE.N'

So"t Alto do~Gdllgl.))_ .......... .

1=1hh CCa~~6:mna~

,L.1::R m

wl 0,. .......... ........

C--'A !7 ... .... ... :

cl I.ld_ ....... . ........ .(So co t*~

D on! ::: . .........

.

rd' Ind,do

L-0. - .

::: .

. .. ........ ... (K .Nddky)

.. ...... ....tWed Wq,,

MIZZ'M41 A

A-doen

sr%"~~

0- (( WN=)):

W-)

5SI LPZ ............ .......... ... (M-n-

(see (b)

. . on . .... .. .... ... .... .. .... ..

See

c

Dalls . ........

. (SC~6 (Q W~)

00-

H%1 0 _o C~'~ 1 : : ~s_ (D

OW.h-.)

w

ph"M C

L .)

Sel Lek

(K-)

totem Region ..

... ... ... ... ... ..

Ancl-W

.. ... ... (ca G"i

L.,, . . ......... ....

L. A

Sal I . .... ..

.. odSeewe

uoohdrlh-d~

FoeedIl" ..,W To. Wb_,ng

. Dedd~ . . ....

dl :dl

Mhl,dd

I_Ohldero =F~

C,=__lt 1 .. ... W.4

-Fo,ce old Nl~

Prewcon'

., eledilon _-19l

9.927,742

sm .659

.361

3"6

99

923 5

87 "1

6,794

106`9

$116.360

98 IN

39 1

318.So

21 1

131070

N .295

1,132.503

184 'as

99389

76,901

1 a3,192

66.79707

IN 1

56

200 :870 4 0

80,160

1,280,1311

53 .464

737 7M

1 86:736

98159

63,lDt

40,220

450,430

17,N9

54 .971

76,052

14 1M

17 179

07:297

40 M3

4 6W

96,485

75Wl

2.9U.49 1

55SW

223 :373

28606

833

8124 ,V1

479.m.1 ;

006

00 71W

1 .0'31

I 66i 1 .2

BI

1, 9 4n.

56~531

9

SoUl"' U'87

86

319,409

2 W912

~4'

51' 6 .8

el- -1 .1-n,

1,509 :174

S24% m

3722

791 .188 828

1 ~521:105

921

G-11 .

6 .905 .9m

432,675

17:1

1D88~714 O

79 .X6

12 .121

7fl

'4369,3 537

10,429

652 ,

S2,186657

63

-

73 4 5114

1'1'2 :'8' 0

79,862

o13'6~ l

lg,2M

3658

77 4

1 :422

1'21,50

66 No

1755, 76 2

312

14

7~':998'2

1,000 .022

38418

593,527

178896

89,927

87 .336

1191 8

.3sg,301

16,732

527 .130

69,986

14,142

21 .172

IN, "

29~704

4253~38

'71 .7'0'1

2,U5.806

22W2 .665743

21 :16~~2

S 3

851,604 99

4 .1AB

32,487

85,30 5

",89 .186

590,7"

192,(56

4774

3o:42.1

9.726

M.3~

8~4136

3111

147 0

wV61

46267

Tile.

(, .holly "

to

W

=

.

W

,dbloe,

(18)

2~1'1:72 8

3

.

(10)

11,136 2 9

12

11 .415

8,90

27.5tS9

-

26.672

13664

330

no

10,026

2,

169

520

IB2

U,111 71 )

620

89

24 .262

42

432

450

8'&4o

121,771

1 25,MI

I .W

20

18

(12)

ST~

630

53

70

"52"

14

1S3

2

195

3

1

20

275

(1 )

36,3M"

22,552I

10 .559

41

23

2 5BB

51 3

1 .598 .7,929

M"

631 .809

102,315

1 .90508

th.k

'.og

(19,

"'k.".

5;6

19

17 OT7

477

70576

-

22.26074

71

'477~ 7'

05,062

19~3T3

251

220

45,22479

5,313

"14 960

8

1 .163

6.964

7 365

21, 76:1

70'.659

1 25 'l.

B51

492

-

56475

10,033

37663

3

4,m

73,5182

205

6 IN

e m

~7 44

i

1

SO

1 972

17377

-

8,N3

11.1019,

609

-

9 .027

2,D99

6~478-

2,3Z5

35.734

50744

125059

2,629 19

207

1'45 .5D6

."N5,

'33 .058

20 436

13. m

11005

096

"398 4 993

"0

R-.I-.l

.-I.

-11

(20)

1740.8

411 :682

3

6 5

12,4722

1,22I3

23813.560

2

'24'~

219

38,337

905

8

-

9088B

4,393

32879

20'~l

17 .196

2.21047

1,27.7

2

293

7l :520

338

1,17320

0,032

. 7

5,132

1239

5116

v'39S11

91

9 :35

552

10

2,31574

1

7.0=8

137

14,899

582

6

51t

703

36114

.55

21

1,244

61238o1

20,3131

306

315672

6 29

2.47

1,134

So l

250

2306

I

"'~y P~1- ~ ~W

Table I.-Continued 41

(in thousands of dollars )

0.1-1 n,gi ... ntl[ dishict.,

It I

fin he, somee hd.l In bod- .1 tebl. .)

United! Show Wei

ldonh~ Umotlc Aegio. ... ..

. ......... . _ ::::~ i;Z~(.C~ I-) 7":

B_.l . . ........... . ...... . ... ..... ........

a w

is.

...... . .... .

(.) go'..

Manh,ftse.-I-)

P .d-.uIh ..... ..... . . . H

M~Atltnnl. RgW. . .... .. .... ... ... ... .... .. .... .. Ba-0- 111"'Ind & c C)

1.-

o'l,e,

N-k

Ph,ladelph-':

"-rgl .......... .... (S.. 1 .)

RO-nd . ..... . S.~, 1-. onR ...

. . ........ _(D-.,o)_

on .. ... ... ... ..

B ..... . .. ..... . . .

Ed

Greel-r~

=

c

Cennel R"im ... ... ... ... .. .. .... .. .... ... .... ..

Mide,"t Reglo. .. ... ... ... . A--n . ... ... ... ..

iNodh D-1. )

1.1.9d.

m

.nd-)

M .1-

0-ha"'

SI L-

& P.~~ . iM _=tj

. It . ... ... .:,.(d)

.1-)

. ... .... ... ... ... ... ... ...

We Rgld. ... ... ... ... .. .... ... .... .. 0:00 ... ... ... ... .

L g,m Ng.d jSe~(aj delovj ::::

a

s'" W~

U s'awle ..' _(W.-glon)

distrib,li

Dr,, Igo I e,

G=l,,', ICA

P':nd! .1 ;~A~v F-d nd N.. ..... . ........

dent e-.ncNr,,agltnW

Tooth, for stete. not M...*W,,

dt~ OW ...... .......

T-1

(21 )

3,7113,295

203.394

i6006

377 .776

17:03 ; 19

So 2

I'M

25

21,686

175:1U6

97

413 2

40 ON883

81 5

2 :1

12'4 31

55 W11

72 M3

18574

757,SN

136 66B

71,249

'134:i12

42,938N

16 724

38a:570

106,650

645,355

U. 24

338

214, 6131:4 7

142, IU7

34 72

"912,.411

'5172

6,97

17 1

67,7889

15,905

17.67 3

1 3 ODD

310~~

108,799

3~6~2 1

013

707004

121 :7 7

0989

116,

813,719

59,834

69 :47

N 243

36751 4

403

681 .51,

..7,. 1

1 3

74

'

.739

2~316 1

51 53

20,032

6

.279

'785:329

57 .833"

53 .4729

51 .01 7

293,400

211, 113 :~11

2689 .825

480,217

36S ll~

Astelleft' end GWIII We@ tele s

Dleeel Wei

(22)

2 .613,980

145,02 6

11,067

12217

216382

2.122

2~~983 9

'82

.28

17,550

U a 9

211

M

.

3. .9.77.5

30?

307

`,9A59

60V

430146

57.085

14.288

524,947

89433

45,917

25 lifi

633 4

32 95~

134~~271 ~2

272,870 4

36259

389,04 0

4,1.167

ia2,048

47,521

73938

3321 7

8,150

370, 14

12479

",652 N 155

112 :1 4

51~677

22 .~ 709'

77,22,1

2B 2116

26 03 7

576,021

18,158

85,905

14716 IM

.043

47,885

82A86

31 .770

~0 .937

51,366

352,157

3,

405

14I us

:

19 13l

18,2 9

42,381

50078

V4 :2.'

455116

33,09 3

231 .058

121 2

1107.:7

226.2125

103,960

287,907

aviation

t-I

(23 )

" .960

8 .135

Im

.4..2

1032

967

9,641

20M

2 5122

2

11 .3"7

7

4U

4;4"

6,23 5

~1~13

927

1349

14,"1

2,307

679

1 992

. 70D

608

4,4U

62

1 .727

93 6

11,720

4,899

2505

2,215

1 .502

288

312

a,390

170

16612

44

180

2w

904

81 0

2,362

1.0(56

379

14,063

434

3.57 1

275

3,702

90 ,

1 ~0727 2

16

ND

335

952

. . ..33S..

4W

"233

635

'2:2'181

1 135 .1

1 :616

1,89 1

6,976

41~23'10o

4

1 :27NO

9.ODD

-hide

bodlee ,

(2.)

1 .091,366

52,224

4,773

5308

1 0,190

4 .165

7932

51 .676

2~'

7,08 8,16

2.37 4

14 117

1633 0

;5,

3

o 698 122

14,_

2136 '2 '

218,51.

44,929

24.6&)

79. 73

4 ~155

9,375

29 9w

13 :131

32~053

sISD

203,463

14,273

20.934

95,428

67,332

1 .459

4 .037

251,41 9

3,122

D3,214

22 .493

4 .501

4 .7M

W~996

7079

29,213

16.670

8,59 7

115,920

3,175

20.513

530

37,974

1 1 .0"ll

12 792

9,531

4 .033

7,131

9,194

103.697 131

3,485

11 .47

1392

1 .179

20 Sw

27033

114 :1

67237

47

16,033

55,366

101 .811

131:15

5 207

74~986

71,278
_itix mvz~~mv-.

Table I .-Continued

(in thousands of dollars

)

i-addleadool,aparkee

="d`le,=,` 2 d b S"" ead:: be Watt

"donan0 bottom 01 table .) to, done, ""

mladawx...... I. on,

UPW tax On tdandP.`a%- Wendell Unciled"led T@Wp,,%r Aldine , . '..

'pra, d t-1 Wagering Militantl

y

... 1.

In" am tiable 1-tonam I

. pa,1.

transportation -In at

.

. I-

(31) (32) 26) (29) (30)

(25)

UnNW Staknot. total - 1 266,252 Atlantic R"I... ... ... .... .... ... ... .. Nor~

'I 3'l

Au,l 71,6284

Bda.9

IM

W259

I V3

id-Al-ftR 914,56

all 74

24 :W 2 o

l

'15

1,492

, ;"-eat '20 N

Other . .

................

...

~

2:'215

M5 .056

. ...... ......... 131S

~21

12,51 8

1,321

,

A,...... ... lig'*. . . ... .... .. ...

. 378.0

95,960

.1921

1 25

ppl) ._

~ ............ . . . ...... . 24 :484

. ..... . .. .. (Flaralea ...... .. .. ~86,764

Unto R~ck . .......... 21~

4 .... ...... 83739

671,612

17 ~78 ... ......... I., n

166239

DMmt 'Mnoun

)

- -:.::: : ~ 82 .421

Ind-o"; n, 44,318 Kera.

ky) A, L.u-l

b7n,a)

Pa"'"S

W V 3,573

4~1

Idenerat R4

. ... .... .. .... ... .... ... ... ... ... ....

. 3"

Aberdeen

2.

(tp)lga..

47

'..7

.4

,~b 4,02

1

4,551

413 .... ... P;= ..... .. ..... A,~r) Sat _ak. di~ ~::::: . :~~]: 14.466

beal....................

.... 47,282 itall ......... . . ("

.w .ba.

2,11

118'9550

a.-

24

.3 .. .... ... ... .. ... .... ... . 2

A.1ob.,e

4 :MB

...... ..... 21,55

9

362,703

672,621

San 91647 a

93389

send.

............... ma~Vdo)

ant! %Alaaft Wt raIT:%aboall,

......

- FICA ~,W,b,s Gional .,lubboal,ng .11 and ;

Wdhhdld....1 led.r.1 - y

............

Co,enn.gl__ l',% :~dab ,-

.,.,, .n uni

and Aa Fn

.N.47..

P-dent.1 eacton On dogn fund

I.............

(26) (27

)

2,339.10 1 .4,.1 .

1,5250

511

M

62

212

35 470 .

91 3

8587 7

3101

1,146,5

7 11042 25:419 2:41ad

28 .1,57

7'9 :165

212 U32

M'1475

76,471

41

1219

53I ~500'3'

210 5

13 4,'Sg 1567 9.159

M986

176

444

1,674

211,771 1 "

~l I'll 7:

.'131 1 4

'494

20 .073 45, :200

12 491 5,

16,1 300'

113,208 6 ~0

3W

82 41

2 776

37,7

27, 5' 2.M25

14

2l .56

4,803

4l5ut

' '15 2 :'4 0

:50

12 20i

4,091)

2 BP5,

~55 137

:aw

2,M7,04

l4l .llV,~

751

,387

2'3,762

3,019

1 7

487P

207',40B

63

1

7

110

245

14 MI

15,61,

2,11 1 4

3 13 1 :4.3

325

736 .242 '74

271 ~992

34 '79

118391

295227

413624

1,691

1,315"

3,7N 7 .264

664

584

651,US

96

435,1436

418

52A'3

221112"

IV:M9

1W

1 118~2

1,81w

31

14611 "391

89:W9

35 220

11 .4

V

3400

1.71.2

10 .681

219

12,201

70.342

62 1 3 Q.,

5 896

15

54,

1', 88 .41

g,tile 665 .675 52 42,350 - 23 "' '9 30 691

r ~ 50I

5 T8586

- 1~1 836.866

~a 3 2 I~ 19

41 :777

~3

2211 75022 26 11,0337 -T1 1~.11It 1 4 18 M5

6 11 :00

158 124018

1, 1,1113 025 125 . 2

20

14 :133

'59' 7.263

49 19623

57 7:25t

234 31

141

1

7 . W7

55 14~579

.3 1 '54.' ',9076' . 3

20

1Ila 19,493 M b 17.735

3 7

47 2'"2.1

499 98J31

1

46 3.145 91

4'

!

'1 78

4

2 .7.

3 N6

308 13.715

T 6'12 ~l 15,561 w 14 W 7

13

V

F614

186 12 .2159

22a1712

(158) 6~687 5

52 9547

225

32 51M"2. 7 4'427 2 8 :712

3,652 68,2

"

4

'27321, I

210

232

119

yebeelor apdaa and all- abo~a

aa U,tr........

ot Pabbsyl,"'a

1,891 .966

5V 7W9

11N6

375

380 :168

594295 '2'0

157,177

17,2,6

94V1 48

29:41

.

.2,76K

MAW

431 Bill

235,

3626

:774

A m

452

IN

M) VU

2C

6T:

874

3,951

305

917 'a' 2"714

12,953

7,302

46

5 .5 a 77

10,6213 '

74 .,

, :I 217,191 6,860,96 11 :.17 (lj~l2

68,893 635 25 . 7 .21

219 1,~

4,971 21' ;12ll 3 4~~6 (3~ .1 L

65 70

3

-1~

IV

-

2 439

3.475 7

56,780 6,1.MI 2' 13

:.3 (14~1

45B 164 122 ild J.

25,"2'0 326,981 97,133 (364 .31ap

P 3,98 7 .51li 2:.68

91, 48~ 2:'.82 1

473

&V)

88 '8

0

5121 23,338 7:007 277.958

5 = 70:2U8'

123:392 004 148.971.

2 .152 3u,

394 2,09740

JuIs

3,492

201 1214ad

31 . 11M.688

~5 "717.1

1

13.653 3""a"103

21:.779 21%753

5,576 12,44

7

1,857

316"9 . 15,821

177 112

23,2" 26,322

32 15

12,BS2

962

47 156

8577 5410

12

1~ 344

V

:,I,

2~11Z

4,31))

2 .91,9

nij3~224~35

464

1,456 B :41

g

192

6,152857 860545 1 292 131 117

65r'93 1172 1

9~932 136 9 ON

(45 %21

1.1175 (9 .733)

14 (14-,-24 39 ' 1' 2')

2,13,46 5395

1

~12 122)

2 .412

387 2,269

41 lV)

2 C7~6 1

4426 12 ]3

2 14"

M

:91 ,14

1 20)

4' 5 (~7,3( 'T:1

95,969

6320

5~257 (14592125NM

74840 17.4~O

1

1.&t8l 14

2,0B46 5 .51 .447

40,320 067.11M

1 'a 7 l:%N

u 12

3

923 (2441)

68 (357)

(245)

1 .5713 1 71 353 3

20() 3N)

3 g7l 1 4~ 61 ~02 3.21 2 .

1,134 (4,042.

0992

2,496 5&614

76

12201 27 -

1"

~.4.721 ~2

.7

V2 "24~

.100 3752.

K16 2j05,W

3-

~i,697,050)

7M

554 4Wl 5V 797 368 (11 ~743) 431 4

4~

:

1

a

24 :"332

6...

.

... Q~ .15 fi 3 1631 (110693 .093,123

~

.406 253 (8.23

1

117 1 86 1

Mu' 7 717 (1t .032

)

2,9574

1

202 26815

1 :'54 2 05 31 714 ,

42 382 1 518, 168

1 .473 (4~ Nua

471 12 462 16VI

4 ~4'

N

6353 U6

. "'

1

~. 737 2:3N 71~

.

1

:B56925 30:5W

1 :173 (23576

1

816 250, 6 99 SW

770.943-

38,206

27,207 1 , 979

28 1M 2 9

13:231

52393

13,164

59,372

127

2

d, 1

2:665 :

M l .7

71

360) 1,430 87' 22384 (1,1 1

432 18,496 137 1

3

04 .681 73 .730 (351,1 1~ 2 . SL

" " 1 9~07177 ~181 .776) 2135:24

10,64M) 43,797 (1,9",038)

1

43

Table 2 .-Internal revenue collection by source

s

(in thousands of dollars )

Soon- of ne'anue UIV Ina ` ' . .. .. . .. .... .. .... ... ... ... ... .... ... ... ... ... ... .. CO_d ==ai .. .... ... ... ... .... . .... ... .... .. .... ... ... ... ...... ..... ...... ........ ...... ...... ...... .................... ...... .....2 8,72" U69, 78802.;M2511 .512 R ..... ........ _. . ......... . ..... _7 i ~ 62

E=. ........... ... ....... 77'342 .976 80288 silit

Individual hHoom and emplalnend timins, late

....................... - _... "' ou .10

_rb"I111ld and I I I 1 11 1 . .. ... .. .. . ... ... ... .... .. .... ... .... ... ... .... .. .... ... ... ... .... .621,674,12! . ........ .. .... ...... . . .. 111 .782,469

1 V,02.t

550,243 .151

117834,913

M301321M) .. .. . ....... 3 .833 .64 o

Eapd. tao., ... ... .... ... ... .... .... .. .... :..!: : . . I. .......... I .......... I. ......... . ......... . . . 5

GM tabr~ . . ... ... .... ... .... .. .... .... .. .... ... ...: :: ::. .... .. .... .. . . ... ... ... ... ... .... ... ... .... ... ... ... ... ... .... 6 .3.3'

.1,.1,1.1:.311

17 ... .. .... ... ... ....

'A""

0201: :.2 . .. ... ... .... ... ... ... .... ... ... ... ... ... .... 37, 4"4 33.631MO:138

too

Dial

Coe

lAt.t..

.. total. .. .... ... . ....... ... ... ... ... ... .... .. ... .... ... .. ... ... ... .... ... ... ... .... ... ... ... .. .. . 3 :73,

-rb. idol d by C

.

. 3,520697 ~1:647 :34.15 S' go '00

it I ._!!~doab-~)

.. -- -V-

................. 501,85`1 F46 70

2

83

Sa,-, baboll an. .

. .... . . ...... .......... ......... . ... ....... . ..... .. ........ .........

Win. -. ., lot. . .... ... .... .. .... ...... . ......... ... ... ......... .. ... .... ... ... .... ... ... ... .... ... ... ... ... ... .... .. .... .... 305

,

..................

= 'cu-,".- 6, b abrounad 92.49 )D~ Z11 -,wine gain, -WInD WIM, S3 41):

arto-IlyC.'..too b... U4 .l

.W, 1.......................

...................... .1111111 212,943

Imported (it.

...

. 627.... ... .... .. .... ... ... ... 1 .571,4336

0--at-'

Dobtasub, $ par l1 502, _o I_ -'an barrel of l 31 gbilon. ($7 1.

.-~l J S 11e,.,a) a" 32"7

"alout

500 parne . 0, 3

gr"eareadiud i . . . .. .. .......... ......... . ...... 9

-'be and -1. S2.20 and S4 50 par, "d-b dondlad a

Wholoadle0.0n

7

door, $123 pe, y ba

....

.........

..

Tobacco Were, adatn .. ... ... .... .. .... ... ... ... ... .... ... ... ... ... ... .... ... ... ... .... .. .... ... ... ... .... ... ... ... ... .. . 352

Cigarette. Wall , 2 .94N1 .22138

136,6271

41734

1.

41

:77

8

826

;4"

416

11 '7S

324016

1 .5011 .92

1

71~4

1 .4

712

23 96

1,7143

104

389

1'310

'gar 4 , usrm. totI .. ... .... ... ... ... .... ..

andt.... Pe- .... ..

-be . ... ..h..1 be .... .. 56336 . .... .. .... 24 .M1

.497 21111

bbborow d,a', led-indantan

oper lu- g.. . ..

. U- (domecad by

I par 30 C .t_a. 52 a to

8,485

7.215

Maddlanedio, I.badd,) .. .... .... ... . 1 .11 ..... 1 .142 ............ .. ...... ........

mandaconnow, *xClea WXM 68

0

total .. .... ... .... .. .... ... ... ... ... ... .... ... ... ... ... .... .. .

Goad-,9 p-. or 0, ... ... ... .... ... ... ... ... .... ... .. 10.02O.S7. 9.927,742

Glaahn

Ga,obt 243 4

.,

fl, 5 owl, 9,062 3B7 8854,8173

bya .M -

2

Gr,:Il u 1~.-ldl3d- be b.l r'notio

n

T,

,b

240,529

48 :577

T,b,floor.k....

bar ol's -0 t1dool buldipe........

p .ol and d

.

....................

....

..........

............ 2,319u: 58

F;.,,',', 'parabl=at

It 285670

255107 23.433

EIwtbC Outboard ot,ba and soneur 'd, ci.,- .,d.n

I.................................

60 63,255

at

. art

..........

. 165 .. . ....... ......... .. . a I

Sha"-firdipabldloo, 11 DellOnl- derdent

............

-1.... .... ... I. ......... .

48,906

Stable lung, band . . .. .... ... ... ....

. 0 par1

.

. . ....... .....

. 39.037

J_r,,oundd .,:gadmj*4$ilj. .... ... ... ... ... .... ... ... ... ... ... .... ... ... ... .... .. .... ... ... .... ... ... ..

2B,390 35.892

Under, aun

W one percent . ... .... ... ... ... 548.3511 651 .158

, p~

.. per tar, .. .......... 303,57

7

y, Su"wemineacodi 55c.-Pall.-

. 31.52 39,919

316 U9

bu=1~:,

:.Per,111

.....

.

...

.................................. 167 .371 1150,280 -,on . ...... .. .... . ....... . .. .... ... ... .. . 41 .. ul .61 0

at . .... ... ... N-- ... .... .. .... ... ... .. ..r .bl inn.1

pride

.............

.........

......

................. 3 .002.8011, 3.70,295

N. .-rdw

.3don pa-ne,3 Cona, M gallon..........

u5 ....... .. 10,356

Deana and somw m'dio, fudl~

.111.11h.n g-ba. 14 Conlzd~~ qajc~

n r 73 :00

5

, ,Ce Ul do gallon (in som-d,~ar~j;

67 :604

MWO, yebidea, Crad,, Dod,

C., 12 2,430 i6s 2,613980

ad

. odal -en,..............

1-11- ......... ....... . . .... .. ... 0 9,7 1 091,356 .. ......... . 1 .28

M Telapho j_* * ... .... ... ... ... . 5

.

A141 ne abdXly- -bange .. .. . ... ... .... ... ... . . . .. . . . . . .. . . 11, 44 , na.apaddj... odau

833 15

. 31,146

ne be-n,............ 2307

7ranspardamd der- by ba,

8 parocall. ~

: W7 ZmIt 153 ... .. .... ... ... ... .... .. .... ... .... .. .... ... ... . 2.589,at a 2,707,534 2 .4

1

., pa'~, .bl...........

.............

o%f 11.1rd b,,,

.

. 2,346248

=a , . 3 r mrw,.......... 10:943

163509

Ba

W=ng tedues, total

........

...... !!! !!! 5"

:IHM

...........

..............

.

"b" 7,315 8,618

. 388 89057

l~ ;=dl=rni wa ad

**

UW no, on owl ,,C,afl

........

...........

. * 03 - - 1 .~.~. .. ..::::.. : ::::::::: : ::~:: :: : a,413151 71 :586

Una um on h19h.ay ,Ncle,l.

.....

................................. I.....

....... 132

Fired,,, derider abb ddCuded,nal ......... ... 4M,143 566

Ex,*,m

a

1 T organuaddins, totei ... ... ... ... ... ... .... .. . . ... ... - ...... . ........ ....... -.. .......... .......... .......

. 136 .3153

Self

. -a- Ind-,

2 ...... . . ......... . .. .. .. . . ... ... .... ... ... .... ... ... ... ... .... ... ... .. 142,

2

or

:

: 53

-Mg, bbal-%i

I

ng~s

666..............

. 83

2491 .1 112 pardent on Wbolat.on mandw 27 . .. ..... ...... ... ........ 21

217 ~209

Tunableexronda,boa I0P;,dna .no.bb.d.n

1

foundation lanage al, ay......... _.........

F

Fature to am On calon inlona.u.n return, SID ..

. 331 89 de, day up to , at-inturn bi j~* :litti 5~.97 473

lu ,au,_,

4

ut,~ .,

tbrn 127 1~388 Pone, perowl an foundation, '-Or o f ............ .......... ........... 121 1 -.. ..... ..... .. v
Table 2-Continued

(in thousands of dollars)

S~.- of -.-.

EM?Wyw Pension PUMS, tOUl --i...................

............................ 41 .2

'C"t 6i hdsG;ih6ut;cn 34B

"ON -No 6 on 3'132.

F,slh.1.=SV'-Z Wil 3mount ,

IN

'000 ........... ....... . ......

Feduh,1. fil: 'n..!l Ic'.Sch x:d P4 .3" 7 Or INS '

. $1. -day~m i;s6g66 :: ::......... ..... F.I.m 10 U, -7" do 1W um .

12

'"sure V"

Fadum 12 to Ninsh Wua,, Zh ~.lWnocl . $1 .666 W each fwl,re

"U"' to "~:de

Se,4

G""" a

.

..................

I . ..

131=k 5dec- of excess armoun

...........

2

can 2 112 Percent to 70 Percent of wndfall P11fit35

.

........... Crude ax as One .. I .W . 2 .. .. .. ... -------

E-hononsinifill-l-,um., 1-1.. .. ... .... ... ... ... .... .. .... ... .... .. .... ... ... .... ... . ... .... ... .. .

: ~: :, 1-- 42,49

0

7

81),INW

th I

Foreign ......

..

moul- noticas .

. 13,

by, 1 1111 or

4 10his - -1.1 a, Pl-,U- 39

.7991

39287

1,25527 .2' IKIE,

1986

17, 37 2.7118

461

34.PS'

1 32 4 57

5,712I2471

8866,967 B 836 638

30:329

11 3 "~l1

'28

5,1.872

I ~131

33.

2

139.7"29

147,663

43 3"

(5425,427 i37T))

Table 3-Internal revenue collections by principal sources

(in thousands of dollars)

Tat.

Motion, and PrOlIpS hormit

hesmi-Coponstim

FIScUll

seen, Ow=-,:

Toss) on- rdl INdWId

..1

Prolus I

Eonplothosent Esup,

tord Alcohol Toleircco

Trul 911111dru-" passe Ibasil.

I Is. . I

.

(1) (2) (3) (4) (5)

67' "' "fl IN 9 7'

39 1.3

. . , I 460,~' 1'9~'U3:277 1:02413285

4 864,542 31,172,191 10 .174,410 20,997.781 2.38

2

1 29,605.491 11 .553~36, 1, NJ~3101.1

2:41' :'

40463 125 71

2 g 1 711

38:957.132 28 .007~659 10.85,f 51 53 U4

5 5

%gg:r,Is 37. 7":1 71:10,7 2114:387~5fil, a 27 to, , 69 22:9%7 :109 3,627~"" 464 21

65 46~6 51

5

6i"':~' ':~"

:.732

21 5 32.536217

4 .7184

69 pla 3 1313 ~~1071 .1 . go 11 2115e 3 1 '23 22 6 1 3

50~06

66 :288,PI2 49,914826 18,26s :720 312 If 9:665 2 a 121 ~1 :317~6 2 7

75 12

.8

1& 1 ~1:

.0 ~tf 0 ..4

580.522

80 :17 1 ~Vl go

2 72 7

~

7

:,,847, ,~.111 :1744 2p:~33 311 ~a 6~1:51,1 a 14 7 73 7,

7.

' I7,.,~. 21 .53 :aN

g I Of '

. 40:1

911 .774803 67,125,126 22 .179414 44,N5,711 11, IM .5139 ,:,, 305 21 :27."57" '0 .,4, 46~153 .ddl 12,502 1!11

94,401 .086 ll

7

12

7"1 99 86:1~7 I

05:

125 395 ;5 323 .714 22 .316134 12.N'7 :'I'~41 5~0

0

1

2 260:257 78 .891,218 24~b[)0 :863 54,590~354

I

4 .4~ l 7%792 .016 26, 1 31,~ 53,660,

M

128 B79,961 131 7 30.n,241.25 61,297.552 20256,133

11 24~1

":2 :42. 34. 61111~111

2'

N5:8 I

48,374.1515 OUI as

..5

53

Bl~qlb "~&' N~ 977, 1 ~ III '4 .40406 28 we 6 33 57

95.722.M6 38.688.568 35036983 W,651 585 37,44

9

131,072,374 11,3129, 5~ff 1 .11 752~41 1 61 11 IN

2-111 Ig 3 :1732 112

:Ig 1 43

:1711 4,001 717 :2 1Is 57 1 :3,5 39~N 709

237

4 4.'J34094 14'S:;~23 :M 5622:N 31 :632

268

:95'

:2' 184~6486 094 ' :746 .660 156399 .437 70,140,809

N3 622 726 202 14 097

45

302 .619.792 205.751,753 46,782,956 "1111:797 74 1,2:

75 ' 9,808p`05 39 7

. 719:2~.

1 6~2.~47'17 214'6~N!i ' :4057 60 04D 804 1 B6:7 5 263 86 76 6 0.144 5 g7 :02Il :&

3131 .716 27 :943 2"

d'i 344'1:.'41~' 2'5131 :645:BS7 112,U9.8 3, 733 474 46041 2:MS 322

.13

519~375 273 359.927 .392 72,379.610 287,W.782 128 .330 80

41, 4pq W2 35 717:~~36 IN 406 .583,302 73,733.156 332 .850 .146 152885 16

52~ IN "'a

63H2941'.0

4 :5 779,556 '49

27 :967 1673 847 .1154 627

:4274&722993 437 .071 .Ng 74,179 .370 362,891 .679 199.210 .02B

I'd

1

742 B71 541 474,072.327 774 2,769 396 65%558 225,214 .568

0

3)1

-

176:1

771

'.12

N~3

706,227

7291730

333

89 1:21i374

935,121

9362,37

1 .171 .237

1,377,939 ,:12'

111' Is

2

1 .626,348

1,916,392

:13 1

2 7 :41,7 1.7 7

2.4

"

2 14S~31

'32

3.13d,44:12.2

. 081 11 :17~1 1

3~53P " S

3680,076

VINI 1

489

A~975 :0132 5.100 .675

4,6128,079

IS7

1 :'4 ~~!4'1 '

5 ~Sj :421.~125

5519:1 74

6 : 98 ;A1

6 1 I

:'l 42

3

'73

17;

6

:22'.

6 1 71~

6 579,703

mrsheds, All

whims, orthin, . .. site paunds

nom.

(7) (a) (9) (TO)

922,671 2,4217.9Auf

~:4'1'~'.7'22 2257,3498

1 .425.2W 2 .i~,184

2:215 127 30U

7W~

1 :77'1

21

HSON

2

~10~

.7 ~21

a :Sn 2

1.

2,219,202 1~328,46,1 1 836 .053

2 .214951

2 :,,,41,120 Sao ad 1 2:31 1392.7 11 1 :3.5:3'62 2 4 . :671

2 '

W3 2.507gn 2 '7~ :152 2,780,925 1,6K91 1 2~162~~ 7

2,783 .012

2

. I

.2:4

.9

2.7,i2 .M0 1 ~ '5701 ~2'I 3 2.886.016 2,018 .066

2,920,5745 1613 3 , " ' ~3 2

2,973 19 674 :409M7

3 :112`1S2' :343~'.

2

9

64 1~11~gl 3~I74~,13S2

4 46'

. I ' 58.

:166 675

~~802~0%

6 .7,.2

3,193j14 1,931,504 4,735,129 Z034,39u

r

12 ' :W 582

3 212,801

l-'R1'

3 174

"

.

3

021 6 5.120~ 0

2 21EPt:1317

3 :'4'41 ~2." '2~01%237 1,610,301

2 ~L&536

3 .111 2 052~-5 6 on:~3 2, M5 3 7,2 :411 a 4

r34 214 594 6, 18 1452.AS3 406

3 14 712 71~8955 5178

1 3 869 ' :347 2:489759

:.

4:87S :'72S 2 :0

.7s l '5~1~13 73

1 7 '

12 :27,7

2:

P 6 'im

2 91 4~1~'126. 1 :.

4,746382 2,011,12Q

6 W3 061

2 .3BO.609

1:7 31,79 85 3 1 :9

0:4.11

2

5 1

2

,

2

4 :~T

200'7~'2773 5' :%2 61.7

5149,513 2.276111 ' 3N :75O 3,750,104 1 .31111

437:MS 5

.742 1543 .572.211

5 .350.B58

2

5.516,611 3,6155 .182

5~,42~7, 7M21I2 .417 94 ~2:1.21 5,A86

:.1 . 1 851~0-8

1,543

11 :041 d,

612 W,5 2 4S. 9, 3

6

54" 2 39l

6 N8 682 3g5l

7,g55 681 57~4 NS639

5~6,17192A 2495517 5 1 3 UB 450

,7047682:446,416 6,487

~g2

9:980,416

5 I~, r.1,. 2g4 .,7 6, :3088 56 226 059, 113

ggod 2,397,223

,T4.2:,4s7 4 , 4:g31 6,776,023 :1610 911,214.% 0

io,107 .930 r17 0,13 49

5,398,100 4,483 .193

10,

020,5747 :103 077

782,251 .812 497.010 003

W.441 .620 416.668,364 244.374,767

7.194,956 5 647.485 4607,845

9.927,742 13,489.014

0~0~ ~,Fsrif;za 4~V*47A~~'Vt'~i.15 4

5

Footnotes for Tables 1-

3

Leas Man $500 - reyised

NOls : Detail may NOR add to mine due mmuritfiNg Nepa,et w adjusupplaa made S, prior roporml cata .

Thermaptstothe~~ .~~W-C.~~,,~d~t"in

"".1"

burden .1 "' a ' Olleclace,

..

1. Imm de= an= 9to. `c~"r'=j'~mMhhm1INg trums

owned ~7-Pldyhs located near State IM

tlaJ amounar ythheld ham Me,,. of

Or IWUOO authors,

I h,,ph~diprlf , surces so this aba ONN. IN.Ugh Ms.

ne may be located in

"Monalons am Paid

another sion, a, throughout sonerat -1.

2. lwudnwxmonunmlat~dW...,.-~.f-mpt

amanintrons

3 CdlmtionsolildllidUWi- .M.-.Ihheld,WtOooid

.Q ., -I's diseblfil~, and hoapdat-ands, raxrd on it

.

mPlayment morne, IS CA). Sunuarly, the lolial of inchidual

Indathe tax li~tlhhold are reached in corhimed amounts With,

do

go Su.-S. disability. and hospirtalms .-taxes (FICA) an

salaries and rges d far Estimated somem national totals for inifildual

income tax anI mployment taxes am Sh-nM this fichr, table,

Gross ritennal mrO d a ra 1= collections, on Page 10 a n used i

n

polar ng noto t S for ind,,duai

nogin.

fame and fv employ,

mant domain Table 3.

1 11 -PlIgIMUP, a1.dpp1,~.-,rmdOd1 Ov the Fdaral at.

'Itur :'Cohrm. S I

are In rmficlur Guam and

American Samna. Amounts of Such taxes

c .1flei Guam and

American Samoa are combined win windar Wma reported for the i

"Foreign Operations District-Other"

5. Includes fidwary income Is, collocamps of S4 5 bipm,

6. The natirl tofiai,fho., Df. y,,,~,NjgNt does notmi On

adjusehont

I

aps by PAI 'inI

he Traosurry after our books

-ra doaddi to Nchurdo "Ind

.duel McxMd tax

WINNOW .~,d FICA"

Edmrmmnl,ngly 96 3870DO .dwfew,'~U~-pl,~, .~t,-r~me

by

This djusament does Not affect mgmriW

w district

data

7 To nai made to banks, under the (Moral W deibmt

(FTC) ="are "I'm='Ne"n= =r""I""'s far

11.

NhoOm -ch In- FID Ubm Such pa

are act tied byatternal michus districts, (nor ""

by "

u 01ass.

to wh=.-,'a . W Payments nefirop hill No IRS applas them t

o

taxpayerS usbrififiree

8 Rephisparre Credits alloxxi an income fox returns to, content

gasoline, diesel, and Special moto, fieds- p%eT k~, 0 b~n

Mass Payments under the Federal Insupince on! as 9. DftgmtionsbY=PaYeMOOMd,motth~r~Mlhe

PrOsrdentiSi election campaign fund are not IN

because 111 do no, pff.1 domayer ImblSy To.lTtarh- a a '.I amcun`~ I .

the fund trificc ana. made On

. national badra any and Memo. hays no

district and regional Poiledow dam

10. Amounts Offset against F, buistaildlNg IS, halphl,es other than

those for ona 1040 and 1040A On ymtch the Cmduts eem claimed

11 lWudmammntscwtaind,nth~mb.na~t=l,lut .t

11=g in n~lfim red' .1m lr~d.~hdl IS 11 IN spol Of .the fiscal "a, Al

.

Is soacei account far the Northern

Mariam Islands,

12 . The Is, Reform kS of l9a4 reduhas cNan alcohol and

tobacco =IN W MISS to make tax payments Oy electronic fund

transfer (EFF.These EFT Payments am no reported by

diS hi"', s J~ct Office, therefore. data may hot do comparable to chsla.data

Pu anedhn prior yeam .

13 Amountaahriternal-nut,tamsodleducan Pueno Rican

products themponed1.

the Untied ~'

.

.s or consumed on the 'Und

MI aoul "'INof lu"e=V, , ==1'~`S2W(au)(,-,ahd` M11 14mX4)

Of the Internet Heyenue Code of 1954, The gross mounts are

included in mrall coile- results (Tables1 through 3)

.

14 . Includes, manafddiumrj~ redleamnal torchut ithas on plabla and

myslyOrs, fishing bacs, bcniS, and aboxis fifiasph Spells and =.. ind el .t. mIMq momrs and fish f,'d,ng sons ,

15. Contains. armanp Other =,PUhtSg%dmj2~0Nadp,p, .S

but III yal classified nt.

7

,

,eNm=mdFar, ns hfi,~N and "ad Gerits mappea.d FOrms ii.Quantity

are filed and

type of oped n the quanor 'he

q,uaner Of Payment mad a dep-tuy

, N

the

C SM11carthon ol amounts Ominously INO

'

16, CWMrateta,ratug~rallymngedfmml5tD46MMerIC9

teasue-me .

17. Indytd-no 'a

ahoIbI

1 .Moome .

Zud"M'sis MhNdtrom 0 SECAI to 50 wment of

as Mh an effecaw W into

of h ht u-gh 3~ '

ml carda),mNsedOn

=Xi"I %rd'` 600 for r is, year 1985

. In tax

Wyear 1986.

the rate morassed to an a -w rate of 12,3 percent

04~30~rceht So Im2.0 percers),rhiposed On Income throug

h

18 Income toxx eythhOlding rates angood from 15 10 39 Fament, In

rax -

1985 the cmbne

FICA rate of 14

1 paroml m-posed

~2a xeme base through

Sham raw=39=7The "iZra"'P to

000

reas.V5 parca -Players

and crintiloyded, in tax year 1986.

19 Ralmadmarement What - ch,ded! into fi~ofiam for both

employers and emplayses The norI M, rate -Ummosaiji men

705 percent each on the first $39.600 d COMPONSS ch paid in 1985

10 7.15 dephmt Of the firSt S42 .000 CA comporeattion wld,n 1986

Tier 11 taxes wers increased from 13.75 pelcont

1. 14 .75 Percent far

employers and imm 3.5 percent so

4.25 pencent for employalas The a es app, Of I

ad to the firial S29,700 a conmensatron pop for INS and

to the finu $3 1,500 Of con,den-On pard1., 1986

Emoloyemofoneormol. .r-~~~-hdM .)~,m

r

-

or -hp bad -gas ~JM- morp. in .7 land., quara,,

-ra taxed 1

2 percent on:. ims U 7

(

to$ .000 for 1986 INS

C iberas roomed by dredlot 01 Up to 5 4 Percent for unemploymen

t

t

.air Unions paid 1. sta.,

21d The Economic Raboyary Tax Act at an of 1981 -d tho -W

"I

fox und" credit from S47,000 to $192 .600 to Up PhIsed in

-

- Iw

jar Period ($121 .800 credit for 1985 and S155,WO credit

f~ 1I .). Aso. Me "'= ~'houdinpualfie~ th dpu. an 1,

1000t.S10000'.", I

lit,

2!Tnd ovided for

annual rather than quarterl return eras due A i Peyotums and Payments The hau annual

22,

effiedtlys October1 . 1985 (Public Later 98-369).

23 Aons-firms floo,slacks to, -MNp-P .n anst,led sornts held

far attle on October 1, 1985 (Pubic Lm 98-369)

.

24 Rectit-lon IS- roppered effect- January1 . 1980 (Public

- 96-39

)

25 RemdW Species, Nmmber

1. 1994 ftblic L~ 98-369),

26 Eliminated Ory the lo, Retopn kt of 197

6

27 Phyrous debut inu 198 ho Ionger ayl due to a 6 tax form Wsi

Iff.b. J ary 1,1

28. Dealers Win gasphnis held to, so '97Said on Apat 1, 1960 -o

assess, a Onetime tax (Public Layx -424)

29 HIghwayhoo lime taxed a$ tOll- hot rhom than 40 Pounds,

no drx~ mcneffian 40, but poi Mors than 70 bouaft 15 came per $4Pound over 40 pounds ~~ ; - 70, put W more than DO Pounds,

.50 Plus 30 Cents per Pound cyar 70 pounds: and Orw mr 90

Pounds $Id 50 plus 50

cents par nouNd - 90 pounds. IhxOS on

(Public lead rubber ShdnNr tureas repealed officish,d January Laar 97-424)1. 1984

11 ~111 Vast ece asureassidd]. .-ume flodr

hod,

rbl.1 ho.dngal

97124), sed

_ignt. effective January1. 1984 (Public Lini

It RIII'llel"dlrl;ll~nI.ndlj%~rll..nl-llr-u.rgroUnd mines and,_

c an I

on coal from

sUrfacc in., effect- Aphl 1, 1986 (Public Lae, 99-272)

.

12. Expired September 30, 1980

. Officially repealed by Public Lm

"_248.

33 Vehid" Oigh,ng-r 55 .000idounds, Md$100 nue $22

each TWO Pounds dyer 55,DW paunde: oyar 75,000 -pos, $550, Prior to July 1, 1984, xshclea ee,ghng Over 26.wD pounds

MM Wed $3 ber thousand poubas,

34, Transfer W machine guns, shon-Whaled brearms, slandem,

rac.. $200a., .-n gUma h contipmation Sposigurn and fifile

barrels, and One, SPedual IYPOS Of firearms, $5 each. Oucxaoahe~

taxes

or

. loyed on ma&,turem, eprooners or dealers in firessernis at

the rain of $10. $25 , and

Mper year

35, Crude 04 Ini Prottiax am-assichen in thesslablesare

undornpiso becauso they reflect dn d In ~jy roundi, from returns prod .

me by I . end of the reporang

er ad

c- re

"h -it

on crude oil wndfaJi profit usma. refer to th . '101 PU

.17p- d

quart.rly by the IRS (Publ.- 1136)

. in UINishod

3& Expired September ID, 198

5

37. Tax-easedforps anpeol$500- $2650tor 1985model .

year a tornotiles to M

- S3.1150 for 1986-model-year automobiles

basedU0an Varcus fuel economy Id,SfiS (Public LM 95-502)

38. Tax rate increased ftom 6 to l0cends par gallon, Shadow

October 1, 1985 (Pubic - 95-502)

39 Includas both amounts collected or adjusted for Users that haree

been repoused of him ibremp and taxes not clawhed Separately in

Tables1 and 2.

mv ~ZA~.Vv~~w vww RAKW,
1hble 4.-Amount of internal revenue refunds ineluding interest

(in thousands of dollars)

bdunni := =.M .Vrad". . ...

m ., p-.tW by

dl,ud~ NwhoodW 1, ponmisIo,- ustel,

.-.1-.- M too....1 tololif.)

roof Corponflida Whidd,al Employaren Efred. Gift Erial .

I inco" I....1

- - (1)

.. .... .... .. .... .... ..

. "N ,

.00,

AVdem~Atlantic Reg . ... ... ... .... .... .. .... .... ... "012.619

hCV-) ..... .............. 63 A's

. .......... . ..........

(m.-ch-M) 44

Z511

Buffalo,

so,

He, 1,615 .6"96

MV,-h-h .. sea P bell 3

P'_mV P-h.a R -

. 1 oll 111

H""N"'

3 A

: p Island)

Mid-AIN .11" R"'em 13,2032"7

2 21,165"

'u .

. 75

s .... ............. ........ . 5M.D6

U1235

01, 2a2

Z'l, ...... . ..

..

. A14-j.'so') 3,732.W

'Ni.delph. ~.,j lbal:~ : : 21 : .11

III h

R no .: . .......... ....

. as

2~009 20.

. . ............ Do-wej ......... . ............. 40939

'I on . .... ... .. aw.. .... ... ... .... ... ... .... . 13

A Ve .. ...... . .. . ........ ..... ( gud . ............ .........

1 :073,96~

82.1.". B91 ~377

Gmenedi 74 89

jj.. ..... 5779N2

.-H, VFV~,da) .. .... . . .. . ....... 3 NO "'

-,,n Roci, S" U5

NaMWI. 1

.

'72'

.171

N- Orleans ............. ..... Lou...) ........ .. . . ........ . 1,57 Go?

C .N.1 Reg a. .. .... .... ... .. 11,437.345

c nceine, 41191

~dd) 21 :2'

" :~"

Dan.,, 4,26D,405

hei rd'and) 1,762,331

Lou,s~ eltucky) 143121

Pa"C's R2

V ~7' :s

Mw.est Reels, . ... .... ... ... . .. ... .... ... 11,342,

A-arn ~8:th Dal,des) 158,07m

az~) bad.) 4,073 , 6A

...... .... .. BID 631

F.. .......... ............ . (North D .k-) 172. 3

H=

. 2,7

mii-km n

.n 1439 :02

0.. ....... . .. ... ...... ..... (N .1emsid) 55t,3

S L-..... . ............. .....(M-n) ~ .......... 1.589,38797

S: Pa.; ...... . ............. .....(M-1.) 1425,914

.a in 111%eld ifin : 1. IN W-) WSW

Rifii .... ... ... .... ... .... ... ... .... ... ... .... ...

14

.253.4%

Maud. mt.. ......... ... .... ~(Ne. M.-) . ... .. 427.093

A use . " ...... . ............ (Son M bal q :q :::::qp :~ 2 , 04 Soo

ch 1823288

52 .87

Do-. .......... ........ VC~ ...) ............ ......... 11 :3053 U16

H.- ~Sea 2, :966 1

owr,ehmi) W7713

s ""a oa -a,, ~A "M442 :230

53

'VV-AV 909,937

iortumn, .. ... .... ... ... .... .... .. .... ... ...

. 16,.2B.U9

Anchor ~Alaald,) 111:47

7

2 .

7797

H-Au .. . ............. .....(IH-...i,) ........... .......... 3,338 :64

Legume N,gu ........... .... (See (a) bclm~l ..... ......... 10952

L.A= ::j='(a" I 'M 1'85

Pare .nd (Oregon) 1.1 :~41

San F,-soV ~a~ ......... .. 2 .11 7M

SVh joes . I'll. I

sa-. ..' :::* . .::::::::::: :::: rVsn)tV.' I.'M&2'29

mi. .. .... .. . . .... .... ... fin. 87

G Vdan, and -ass, FiCA credits .. ........... .. 939.351

u. s customi Be-5 1343

Earned income venct 56~osa

R .1un.-N.]. und.sphool . ...... ........... .. . ........ ... (18,966)

T .W. far ... of filf,ca,mi W..

0hre .- . ............. ...

P,hna,im-

(2) (3) (4) (5)

18,227,222 73,077 Me 1',nhi 246259

2,882,1102 9,765,507 302.065 34 :911 9

50,780 571 .111 M 977

2'

:17 298 ,

2

7 S412 714

487 121 177 " 477

'2

,BD. 3 a

.'B J'~~'751. ~3:37g 5423

111~4:271 1,221 1 :441 18,592 1 633

2'

7" 1 am 559

330,7 12 '17!1

73 4:052

B

1,408,111 1,566031 244 17.702

'1 6

.151 749

,17 '27"1 :914B 6 023 (507)

12

2,386, 1 10.362,304 342.6W 37,735

N9,093 1,W9 .673 66608 5 831

125.133 426,71 , 27.781

2

887

' 37' 31

:tl 16:0712 103

122,757 65

55 ~`

2,1"'

111 ~'g 1:'711 22,:17117 129 .137 7.530

06672 51,827 16T

357.098 1 1 30 ~2 32 .047 1:76

273,292 1. 699,196 30 .109 2411

278,935 178,963 1 . 42

1 .801 .91 11,016.624 247, 5-

'39

43,824

284,576 1,7K675 ~ 475 :617

133.33 NI, IS "" :' 5 D

93,070 779 .023 12,401 1

251,313 1,463,005 N .5,17 1 ~2577B3

4

5277 524 .568 8 :585 27~5

462481 3,119116 8138. 22

,

74

62,706 470,966 9.412 528

209460 213 25,139 8 2U

259:696 1:20,7B3 36,011 3!807

2,2U,w6 0 .905,643 1 "'668 17,474

29 .270 1.425094 21,015 2.556

1,250 374 045 l.a38,232 28 .665 4211

:174 2,933 .173 61,130 6

:B2g

20211 1.134 .07 71 2428

B2:0 B2B1 1 5B 1'1

36.717 426928 6359 38 :70' BE5

2.30,1, 41 B,807,742

155.5"'

22,46

20.599 135114 1 .788 207

1,098,865 2.871,78B 727818 .295 1'!2

im:51 644,189 4OD

17 893 152,209 1

ROD 192,271 2 :29" 229 1 323

,

.a 4

15 :1 1~052

171,25 '1':" B 00 1465

235 483 1 .3174.866 A 057 3885 M

269421 1 137 5~ 16 .2 Bkul

125,433 760,383 7,162 2.672

3,M' IN 91"D 10

258901 31,062

3B 15, 377~M5 9Z7 9B9

441!411 22 1 150% 32~ NO 8,208

'1 1 So IN BOA, 31

1 .1 3736 2 32'.5 1 ' 80 8,773'

211 2:.55 1 066935 2201 1.633

1,09 .166 1 530,593 46,742 4,W

272262 936,296 1~1~4' 2:1

131,966 937,620 786 2

'N

14~74

'3 6 376 242 9

'B5 to .021 323

14,528

1

3,184 4W 12,824,221 Xiu, M Be 31~7.74

27~2266 211~2241 7~50 92

'S 60 209 88 3 993 321

~,114 297,A67 5,876 at

5

3617 BS, .337 2,726~124 64 . 79 7.732

032

1,2 ~2.32' 2,"17,.S 71'~ 18.'221 5

M '4 283

1 6'

102 803 712 16 . " 3848

70462 1 2 .,057 21,679 3

753,167 1 277~3 72 15:9208

298 01 '73'0 2 6

.139 1697

4B5 4

1

176 509 1 .321,646 26 , 988 2:5

.1

- 774 357 -

- 737264

- 56.0~8

(6) M

41,57 N2,"5 1

741 26,89

IN 532

175 2,939369

2D B 903

18 1 73

1 3D

.

135 2865

13

28

4 29

1,15, 77 157

197 to'e(k,

146 1.446

I Z6 8

~

'

12

263 3d'

54 20218M

197 3,721

(IN) ~,400

5 5 340

.61? .a

26; 12,1 "

"q

9N 2 .

206 702'g8

2,717 7, 3

8 7G5

1 51 9,262

04 6 665

121D, 636, 50

m 6~31 '115

53 II.B51

451 to3 . 96

.439

a 9"

242 52,426

SO 31 3

4GI 21 we

24 2:587

31

646

13 3.73

65 971

(320)

1 11

:4D

1 5

.5117

9 B49

32,840 600.628

46

165 5 .74"1

'

2

.

2

2,461 67

20 621

IB2 287 "

64 1 33:'1 5

'1 662

55

29,051 379108

752 IC097

3 372

2 .920

ISI 3 1

97 3.7

3DO 84

46 44,212224

231 8.190

1 3

39 41 .0~

78 (95, 519)

IT

2

2.3j'31

124 :~67151~171 2 121.1 :B' 9,592,972 278 .129 50:~1~1 4 273 1 474

1 "

1 :2

298 3.632 7' " 1

4

10 26:857

7 :B90 :71 g' 1 IS

'4 7 11

3 99V 1~~1 703 7 3'~ g 612~130 1~643 g. 7 12 25765 412 19 :736

2" 49

.680 6 788 118 124 6

4 :"A "'

770609 3,237.

.014 83,074 11 12'

6533762 2,582,173 5 .402 156 164,827 739 M . 9 9

'1

:621 2,808 360 .276

I ~-1111 am, 11CA 2 . NVIIII hellarrall old 11.111 1111oll BID 11111

~Vhcaucds cried .. 111hrol hoome credits Iafunded, mounting , Is $1.5 billon, one relunds announting W $223 mf1w one or, parthashp shut fidwaly-ome M, returns,

.

to, ga

..hn. and lula-I'Vig old - wymem .

moludo crec4ts forabicess PaYmente under the Werai Old age and survr-' dVVVb1Vy and federal hospiMl funds, amounting W $737 miflThe bNacsofthisformisher

is In. U. S Cu- S-ca Culcons does nct'Woooride the count of the number of NfiundV,-Vd far thisdann ,

Far

-a - do.tied by detrct before Sept. 30, 1986 (Me end at NVudm refunds asi Septermber 1986 arnus etund r,,wsals Nic-Om September 1986 the fiscal yea,), thot

fraerlV-atng and coarpoebw Mr- Me data IncludeOV, this table muVi agree ~h the actual careacb0ho affecting ON, refund and interest approiNation accounts for the fisclo

7 Amounts my nol add due to mnd,,g

Table 5-Number of internal revenue refunds issued

I..%]= red..

-0 B'

.hngW olarlet,, IndVowl . led b 1. ponerahooeoi y ; tol

10, =r-- honn. of ba . .. .1 bible .)

7-1 Corponal- lailhill Employment

I i- -

G"I IEAC~

U ."ed S-. 1-1 . ... .... .... .. .... ... ... .... ... ...

NWJ~Atisafic RegVVen . ... .. .... ... .... .. .... .... .. .... ... ...

Me,J-Ationti, Region : ... ... .... ... ... .:. .... .... ... ... ..

1-qn 0~.,.,Vons ............ ....... -. .......... ---

....... .. ...... . ....... .... .......

S.W"

.'

Rni on . ... ... ..:. ... ... .... .:. .... ... ... ... ... .... .

AV .. ... . ......

B,Innmt~- - :1,= - : ::: : . : :: :: : :: :

C"'Um

.

-(SaUth CordGr-hol

. . .. .. ..... . .....g,lorth

111n (.--pp)

jacl,ad-

'a

F,

A

urns

R.1,

NMwle

N-0oa-V . ... ........ .

Control Rgle . ... ... .... ... ... .... .... .. .... ... ... .... ... .... ...

C.- he. ...... -

Do_ Qd~aad "..-CM ~dj

no

Lour-IA . ...... ... .......

ff."~ R 1, leVbu ast h;,-

... ... ... .... ... ... .... ... ... .... ... ...

6Sauh

a (b [)) =~~ ...... ...........

) .. ....... .....

Fargo 14.0, D.kot.i .... .. ........

HeM-kei ==N

Oman. .

$I L.,

S, Paul

Sol" . ... ... .... ... .... ... .... .. .... ... ... .... ... ..

Allbuqued~a . ... . .. Ausen ........

DChay .n. ......... (Wy-ng ;`!).

.0. )

Houshan . doo')

N .) ...... ............ ......

0 Arcon.) . ...... ............ .....

Saft Llk!

W-Va

WeirtaZinakeegion .... ... ... .... ... ... .... ... ... ... .. ABence m .. .... ... ... .

Honodu

L.p. Niguel

L.'

Pont.. no .....

. N) he

Sac (.`DN`Lowi -: : :::

San Fr,m,!co

. son

San

S.N

Joas

. (w-

. F

.QtoN ... ... .... ... ... ... .... ...

Dinner, lal"lis n ;

... ..n

(1) (2) (3) (4) (5) (6) -M

77,927.

.32 853,061 74.274.3011 2,625,3U 13 .n2 1,126 159 .2 10,M4,1117 103,U7 10.337.76 0 7

274

7 11"', 1,9,8 In6

42'3':'M"I 3,M1 4":" ~1 758 40

12 '3 M3 64 .295 293 27I A"2 1'2

!Pl 7B

JS

:4

.

I ' 2 22:ON 75 8~ 26~ 7 2.140

" :2,

3

11,932 ' .'7.4 B ~11 2:7 3 194 16 2.431

,Be 701 1 .313,4 60 11

22M 17 0 B 9" 2A 2 545

925 12U.DD6 44, 78 34D 29 1.873 1,453

382,059 3

.737 22:513 1,340,752

.BO7 364

87 0684 645 73 2070

:69 12,806 SO 5

111977,11115 94

359 .97B 3.9B2

.033 ,437

NS 523

.357

9 .920 28 570212

418,339 11876 115 21 SOS

2,108879 18,793 2,013013 71:~1 ~15 360 M 3~111

315454 2,760 211:1 2,

1

42 7 227

71,192 so 747 22.U6

2 - 'I

3

.2" .262 2,680 237,586 3.637 14 7 21 2

2

177

632

M3

:164 17,976 2,530

26475 3 005.416 139.034 W5 20 5,283

.101 80,216 352 23 3496

1 .401 .209 9,019 1,429.803 39.235 1 71

2:177 1 ~141 422

6 1 13 2 :11

2.022 :924 11 5.2:72.3 2

.

2n,l 432

9M 2~2:269 3 5 4 .

15.1 42 4 39,

42.508 143 . 47 14,493,399 M,6111 2,010 32, 5 2,1

1,249

063

.433

.n5 8,905

8 .9 207 178 31

1 .97':559 61,302 153 23 3353 T

:1 1 62 18 2,235

2 4

1 B 171:.1~12

' :1 41 U22'

1~24'

1

2

.

IB2

179 2 91 7"37'

. S B5.

.4 1 M 21 4

743668 5,4" 715,902 20.692 43 5 1,562

4 .030,682 4403

65,1.219

4 3,B22,561 157.50 5

1 5

:.08 631,~6 17.027

39 89 565

1 .741 .949 16,130 1663,536 52.729 280 5

1 .054

1 104.321 17.797 1 W6,300 47,338 295

24 9,150

1O .Us' 21 2,572 213 1~121,12s 4~124 I* U5, Mg 1,137 '05 17,. 1 1,695 468851

Ill

642,811 35 704 221 15 2,521

2 .104.040 20,195 2.033,342 47

.

04 1 292 20 3,150

2 71 3 7'0 3 2D2 23 4 7%

M"01 tq 2 12':

31 B, 1 21 94 4

43 :333S Mo~g2~ 223 3 1197

6

048.983 5 542 1 .OIB,451 2 .305 83 5 IS',

~3.235 3217 527,656 11,630 26

6

10,583,00 126 .123 10,163,269 267.61 5

205 849 3.071 196 .027 5

742 66 126 24,249

3028,401 31 .430 2911,192 80417

51 11 D47

440 35 4.987 861,416 14,932 121 7 IS1 :1 aI

B

:733

'2 69 1 2.03

1,256056 B 116

201,86S 2:1 4 1

24007 8.504

41 52 1 964

60 4 1 .285

595,798 11 :3" 1,53uf 828 3B~596 192 17 3 We 1 0,849 9492 47~5~663 13 .70B 120 6 1,860

979

.992 Maui 1,56 505 43 .B62 281 13 76 0

1 .3,11 024 11,972 1,298.587 28 64B 11 11:697 95 , a 9,213 928.070 20,169 21 2

14.091,524 140,11111 13.637,907 3a,7,361 210 23 ..1 "2

1,11~1

484,009 4,845 462

:2

.600 5,679 Q Be

'B 1' 22.7013 1 .781,864 15 84 25~ 31 6 4,1

20 3,155 158,205

7;4

2.UB,101 32,494 2,M

IDD:097 331 1 1

897 '3' 67 4.735

,1 2

:3 3,11 15679 1.052812 38,542 161 2

110 8Z 4 6W 7137 :73 55~ 008 2

1,022 .

971 79 33715 11 31 2

1 032,603" 'j,

2 15 650 9

2 163 986.692 32649 159 1:360

472'

:41 74 4413 456324 1 SO U 1 ~S5

'4

34 6 602 2,485 763,092 2 694 164 12 2,007

13.082,356 161 .200 12 .432 .nl 460.252 3,4n W 21.95 1

"I I "' 3 27 976 3 26

. 1 119g:17 B31 13 3 724

96:998 227 37 5

9,621 28 1 1 tu

2

:N12 57 360726 10.72D 64 7 U 5

.

630.194 26282 2 .512770 87,134 532 26 3,450

2

.:012

1 1 31,142

3527 329126 11,268 49 11 561

2,329 063 91'B20 762 4 170 16,869 993356 32,544 339 1

4

56 1,047.587 23 4:

1 241 .051 10,072 1,190,309 38, 21 231 13 1.505

1,312.162 W.142 1 .229,656 57 86 614 27 3663 1

1,496

705,a36 M.976 1,619.U7 61~630 .6 a 2,919

ON 20,058 1 422.324 50409 195 4 3018 (5,173,07)

(8,173,097) (8,173.097)

Tolools for frodes net Mm, above

9.US2~ 108 .614 1 881 .645 337,365 2,785 132 14:7

1 " 3.988,199 40,643 3 839,262 100586 of 50 7.21

':07412 57 55 :4

31 5776,709 215,688 1,191 106 7

S

2'6 .i"' 4:113,373 .5 , 5

3:~67~6 :"l 745 513 35 71

S I I

:~11

B :451 526 36 6,46 1

995 GD4 74 .171 8,686479 222,D97 798 129 12,020

I Ircluodi IODSOD mfunds I-W 1. fiduceiVes end

2 in MUe 4, amount of mernsi -d 1eW,dV Including interest refund arrhoante or . 9-

far these crod'NV claesdied Dy district before Sept. 30. 1986 (the end ol the h=t year) .

~ Incluces netunds issued in Separron, 1986 r- fund ndoersel ndc~ in September 1986

that and interes: appropriation accounts for the fiscal

YFLr'socotmang and comparaVve ourposes, the data included in this Mbe must agree ,,Vh the actual dansacb- affecting the refund
M- .S~Z;axz 49

7bble 6.-Number of returns filed

`Z"rh :1W*=

711~smsnd one InaraIrmad by dfiabft1l, small I

Total be, :adid.fid,al Utinumad

amia. Inbammubaban: e.W t.- -me.

to, am.,-- mmun, art beftma W otal ..)

Ffid'emy pahmanabb, "i=t= Ealred. -

(1) (2) a(3) Fit

Unit" Sones"o"I .. ... .... .... ... ... .... ... .::: ::

: 158,017 .027 102,393,211 35,4115,439 2,305,21 7

NIhh,AUI .I. Intern .. ... ... .... .... ... ... .... ... .... 25,712,osa 13,6412,110 5,059, 89 11

A,'lanve 1,658560 . . 6

319410 15,951

ame) . . ............ ........... . 914,041 11,: 1,59 173 Do 11,92 7

Boston ....... .... .3U 2.7W,874 1'1113

Bleakly 398 We .552 102,569 5M 2,96I .E03 31 .254

......... ..... ...... ...... eaow 3,298,946 1,890,124 W3M 39.861

'uh,mgIon 4 9400 230 .664 N.439 6,146

-mm.hj .

.

:::. :~ 2960054 1 564,316 643 SW 5' .T`4 Mumation (0 boa, ... .......... 4,215,601 1,829 .551 758 .1391 1 "

P-.m New Hompon"t) B93 :536 412~' :21 1a 7~1 :41 1 '56 : ..

.P,,,d,m,, ..... . ...(Rhode island) 793M B 15 12,lD3 I~Allfiahtfie 26, 14,692,

!! 450, 56 511 6,091,687 361,558

l3raft- 4,267,6W 2,4W .492 737 951 W 126 F-p, P'..'Or .............. ............. ........... 1,144,U3 562,169 201,185 1 195

34 .393 96,406 58,336 236 Other 797,960 4 71 41~11 959 New .h, 771 81 13,

6925,085 3 , 78~3 '2 455 655W 5.963,lM 3290,738 1276742 122.439 R-.1, 3,263 .11,17 1 .1348 488 687,242 485Mr

R.h- 4,30323 2Mr4 .650 7965 250 43.652

-,a) ......... .. ....... 528,469 287,593 5,862 12.096

.. ... .... .... .... .. .... ... .... . 33,100,4115 18,426,973 5,919 .386 296 .0"S ftrues 4.167,!545 2470 .659 565.613 31 .692 8-hm' 2

hrom 609 1,505.190 355,631 22,267 GO. . . ......... ............ !3outh C-Im.) 2:11 1 743 1 .316 .~ 319,625 15,472

G, ..-' :~:j-: :~ :::::::jNohh Card'-) 4,522251 2,04656 726282 43265

Jac-n -OF,) 1' .. 556 9,321 . !12 911,289 225,683

Jwl,aamhi~ ............ (Flamer) ........... .......... 36SO45 5 129,905 2 .461,615 114654

LAtle Rock ......... ........... 1:26~11 312 874,191 291.W2 13317 Nas1wrfie ........... ........... an 3 1

.593 1:6"' 385 510616 28 157 New 00 be he ..... ............(L-nal ........ ..... ...... ..... 2,951.A70 63 IN 456419 17,903 Cammal A OnOrman.,illon. .... ... .... ... ... .... .... ... ... .... ... ... .... ... . 21 .US,490 12 .639,017 3~918 6.9 270.906 (Ses be :j 1 .316.62() 1 .933,516 593~ND 45,349

Clanetanc! 4,562.137 2,590210 854898 57,821

Dre.1 6 4788~831 ~,fil 1 317 .089 1,070.844 68,13,16

. . 2

""200 776 108 57,147

,t,cky) 23fil,614 1 .111!~171~1 414.~1411 29 :161 RE Wg"at 1 157,577 N4

200

1

12 2B2 M Rgom

*.. .... ... ... .... ... ..

. .. .... .... 25.351 .190 13 .536 .327 5 .241,961 us'..

Athoolmm rs, Dgk' 562 W4 2M.87B 116.713 6 .407 ch" a

:1 :.: :..

: 6 602,393 3659.603 1.300,568 119093

lowe 2.32 .139 1,157.028 549,231 41,890

North 66 515 277,821 119.924 7,151

..a. 697

4 60 77

fi'~4 I

M-kaa ........... .... 3 .750J"13 2, 017:9112'

7131 :~111 67213

Omaha .... .............. ........(Nebrastou ........ ............ .... 1,321,81), 672.499 270,539 t7 508

~1 3 :912 . 1.091 .8,11 840.287 53185 S, I, 3325382 1,807,777 639r3N 39,925 Imniiadcl 2,28075. 1,231216 513667 32,471

... ..

Afteum, 597 . ... . .... 24,51111,1115 13,217,214 1211 .01111 276.M .057 111695 8029

~

Llay 1

.finm . Fin'=):::: 31~8'2717'8 2,142.36,1 599,519 37A97

as " ba : : .: . 079 2D6.695 69,334 382

5492.082 2,911,325 894 .686 :.11

Deh- -.... ......... Colorado) ............ . 1702.690 1.430,7A7 443,229 31,373 H-On . (S- -) 30,15.902 1,674,785 424030 33 .215 Owamema, crty .... ... ... (0W=) 2444,358 1,2131 .997 A42:533 2U27

Phoem,

SO Lal, . '61

A 2 1,312,416 506,757 29'WS

593402 136521 15,4~

W... ...... ......... . .. (Kenese) 2 ol" 68

.X

W2 1,036,426 447,381 27021 W=R,glo . ... ... .... ... ... ... .... .... ... ... .... 30,948,493 16 .279,999 6 .125,282 31 1 3 1

'go 42 028 238,W7 37~M 1~464

'M 702808 367.48,11 125,601

6~387

.... .. . ............ .(He ..,) 789 172,022 iW860

I-a'..".6 (S. (a) W-) 6J3185 ' :1 1,414141~1113 1 .2.747 41142 :733

I-as ~.u as ......

. '7d

L.Ares

N-, I ~;' 2 HE) 5 712.6" 3 707 3 .007.8432 1 0 1~82 80 W .

pom, Greg.) 2230. 91 1,125.964 460 .373 24601 "'

S.I. 3 652,098 I,Sr5l .324 Eo,8133 Za..38 San F S

. ': 6 1.359 .9o oB,W5 38.662 San J, 15e E5 4

189,137

"'Z

2.187,626 829,706 36.048

Sater's (W.-Woh) 3.628,988 1 .03 .975 709 .140 35,970

Total. to,

..'...' ahean, -

Grit ne Empletmenhat

(5) (6) (7) (at (9)

1 .8"It"fill 31666937 71,518 102 .965 27,931,915

201 .307 597. 97 11,233 7,0" 3 ."7, 93

11,617 29,092 583 1029 121:12

5,339 15 :689

0 'o

'46

29,772 1 WIN 2.300 3372 I91.OBB '4'

38.441 143,162 2.048 2,253 753,540

23.468 49416 1 .04 2.670 428,71 6

3,W 100, 143 224 88,272

26,660 SB W7 1.395 2.2W 410 344

51,443 1!11 .552 2 .W6 3.6613 84'

:

685

5.902 16019 266 478 13, 2DS

5,079 19,264, 262 332 2(r,492

225,379 .90 2 12 .275 3,770,01 8

41 W8 BU"N I INN' 2,397 626,772

1 683

22

"S 611 111 214 :1

189

642 2, 2, 1

85 752

1,4 . 22206 08 IN 29ou

W'610 173,1PI9 2,576 2.WD 980755

51 .451 92,093 2 .IW 2.525 7 823

28 .239 38,943 867 1,335 4U,326

37,442 75861 1 .455 2,519 65011 1

4 .146 14,122 247 37 5 79426

20.369 682,465 ,,IN 16,795 5,2323

30 846 79,7W 1,114 1 985 o 1 ~ 7 goo

17,827 37521 614

1

. 293 407,763

17 .030 39.019 07 11199

.

36,399 7 1.317 2,701 727. :'775

23

4

12132 ':'965 N 710 269 B&l

70036 275,M 4 684 6 964 1,524,149

14265 28,955 461 897 258879

31,80B 46 U7

23,NS 72,782 771. . 1 :1'4'~' 4'85.9'1 G' 178,415 371 .471 5,994 9,755 3,066,1147

28,665 49,2U 1 .074 1 .603 447.050

35 .~ 76,661 1.269 2,110 624,372

56 .6,13 118977 1 .510 2,414 - W7.651

25,777 69 113 1 .199 1,96B 537,375

21 .~i 39285 U3 1 .250 374,540

10 .1o IB 13, 299 410 175,B59

239

6.101 470,664 10131 3"n""019 .035 B.8o 250 516 97M

64,165 138.206 2,571 11 :,31 867962

22,454 42:21 1,157 33 355560 6,178 it I ~` 30

.. Nj

21

I

14.~5 339 720 121 30

V~2'69 65.015 992 3.176 554,992

14 250 27.4U 71 ~

31,505 71 .121 1 j

:lil 17177:41

29 76 5 766

35422 Kol 1,197 2,491 484,307

17,5137 28.700 1,260 1 .154 324,97 1

344,361 196 .857 9,4116 15,2" 3,794,5611

11 .974 17,475 316 540 161,978

47,193 61,513 1 .569 2 .967 5W,90"

6004 9241 469 IN 73,179

90,786 108467 2,1o 3.164 875,873

43,589 65.193 9W 1 N7 4~ 6 10

44.193 70 555 l'o,, 1 .562 45271

31 .611 51 .1fi54 1 .156 1579 316~48`3

29,309 51 .671 N5 1,2tO .3 1,395

19,610 23 .870 252 M9 155,95D

20,192 36.9W 999 1.536 325,436

03,529 549,341 13 .960 13,236 4,514, 2

7.795 9.072 1 37 71

9.978 13,878 217 305 12

:1

20,555 351 93

2.4W

121 .225

71523 106487 IN5 821681

8,959 17,988 232 422 108,788

02,675 12,1391 3,Wl 1,974 871,270

24.258 40777 844 1,850 ~ 9513

47.W5 49336 1,595 1 :1 511~7317

33.0811 4 16 2,ozia 1 272

374

73

57,~6 6 ; :8472 1,964 1 .6437 605,019

43,950 64 .448 1,147 1 .461 546,41%

114.726~ol 4 1. '

19 W 01

:1.14'~.29 2321,1 :292 .03 382,623 11 .081 8,128 3.2N.05o

.752 166,905 3,831 4,W 1 .192,911

7:626 .121 2.781,B 11

33' K

.969 177022 IV 1 11,812 2,253,443

4fi 39 .123721 1 :226 1'I.14823 .'fioIr 1 8 . 170 . 125 M5 Z~3 3,713 1,071422

11111 71.11 131:~0631 2 1~160 1:14

6:728,474 1,918.235 135~309 1 82, 1 72

24. 5 4 :173 , 1 :212

B06 693 9 62 7

Column contents:

~32~ InCtudes FOhns IG40, 1040A, 1040EZ, 104ONR, 1040SS-PR and 1040C .

Shows the mirtorm of 1040ES documents filed . Commissumu's Annual RNom, phof to 1981 Showed the nurntoe, of files l4i " F'= ~141

(6) rulfird"

"W's 1120.

112GA, 1120L, 1120M. 1120S, 1120POL, 1120F and 112DH

(7) Indudes F 7

18)

Farm 7~ orms 06 and 706NA

(9) Includes Famis 940. 940PR, 941, 941 PR & SS, 941 E, 942 942PR, 943, WPR Z. SS, CT-1, and 1042

Ibble 6-Continued

ma-I-.-. ggl on. . W ahad-, at ...

and .1-1 amea . (

g

- P-hl.d b y Wn 1. dfiftrificts ladficas. 1. samer, 1. ids Mm,%=

forgouttur shares aluna,'bit bonom of labl..)

Empi.,-

P1 . ..

ATF

ralum .

U .1- Supplanum. 1

da~. .. at. low ...m .

110) (12)

threat! Stat- must .. .... .. .... ... .... ... ... ... ... .... ... .... ..

. 487.183 2.141,702 519,917 Norm-Affinfli, Ft"Jon .. .. .... .

. 62.203 393,869 75, 52

.ofin, ... .. .... . . i~~ I ne, "'-*")' * - *'*' ' ".7'. 11.* 1 11 A.p.sm .... ............ ......

. Z

4 7~ 16261 6,745

) 7,007 3.776 Ilareen ...... ...... . ..... ...... . ... vm.-'~et~j : . :.: 1'7:'

Brooklyn : :., ~ - ~~ --). . . . . ... . .. 7

~4570 67 :38 13.7M

8 '

.r. E

~~ W-) . ............ . .......

. 9,9. 383M 74~

an

8 2 66,1 rl~ng- .. .. . . ..... . .. . . . . .. mant) ,, ...... . ......... ........... .

29 8,1 U2

Hartford ...... . ......... .

. 1,6"

4

.

S.,nooficul 9,882 43 .5B6 224 Manhattan .. . .......

. 63 7

~NZ'

22 2W 114,66A 9,301

ph-h... - , ~ - :: ~ : :~ :

2:112 11:4914 2218

RAW-All-l" R-glon .., R

dr. Island)

6

2

3 6 9 GIS 2,WS

BlIfilore .

17830 30,542 67,590

FOre'rin cprrafi

;ns 4~301 55,860 "sort

P,eho R- 750 1.809 368

Other - .... ...... ........ . ........... ..... ....

.

..

.......

. 1 11 DO,

61, 1

254

14 pmja'~Jo New. k ". ..... ... Je=). 13,669 08496 17381

I= ') 16,117 74,o9 16 IN

SgI ".) '! 10,235 33 go 12,240 R. a h I0'K5 38420 7,487 seemW,I-nglon .sed *g " ..... . ......... ...........(De aware) 1 gZ3 5 519 1,951

.. .... ... .... ... ... .... .. .... ... .... .. . ... ..

36,1,42 213 .30,11 62.0.

Atfim

B-m& 4

. .....

. 7,2U 27,821 7.20,1

.761 12.711 3934

GO.. ......... .. ......... . (S-Ih Cmom 3,757 11.699 4,108 Green- . . ... .. . ... . ........ (No. Carol 8,757 28896 B,072

Jac,Oon

~F'1--0`a)Po) 2.771 8,310 4,232

11 .324 73.621 16,372 Who R.1, ..... .. . .... 'A, 3.170 8,589 3,068

N-wile -- .. '=)a) 6278 W 687 New 0""

.

.. (L-ans) .

. 5Z9D 20:907 8:026.2 Commit Rg'.n .. .... ... ... ... .... ... ... .... ... ... ... .... .. .... .... .

.

.

... ...

. 65,707 222,453 65.450 C'mormall (Seo fich be::~. 10,728 36.078 9,716 Q..

." I IS. (ch he 14,076 58.018 16,58, Dan

find-

.,,

.,-I.

Mch,,n) ..... ............ . ...... .

. 16'.0 WN8 19,970

11,856 35.2M 10695 Lau'=Iarl Far, " 5~8,13 15 ~Z (Wast Wier 3 7

:W3 4

lifid- A-d- 03's" 358,180

R, S64 6o IN

104 .6011,

...

..

ch`~ o

w ...... ....

. 2,321 7,295 2,771

Gas Z? 0 nes ........... . fifi... -... . ........

.

.

. 17.686 102,261 19.463

......... .......

Fargo . . ..... ... ... ~111, Dole) ...... ...

. 8,783 42,305 8.7W

...... 2:12' 1241.7 2.165 H...-- Monomer .... ..

.

..

..... .. 2

.9-kee :

.2

.211

7 :1 3,7M

Oman . ...... ...... (M-brOn"al' 14'

sol

,

10 5 1 27955

St Lo,rs .. .. ............ . (M-n) ........... ............ .......... 12,634 37 :581

.694

S, Pa., ~. 12,20

52 So 1580

So"'

-N -`r~i I.. ......... - .......... . 7.5575 29 ~~' 71

~4 909

South,= Region .. ... .... ... ... .... .. .... ... .... .. .... ... ... .... ... .... .. 54.659 9

:2626

.

.qu ns,755 611,25,11

M-)..... ... .. 2,360 61899 2.188 ~sfin . ",w) 7,925 24 .297 10.2W cDroa hey:nna . .. . . ~ :341 3657 1,581

D... ........ ... . ......... Conrad.) .. .... ... ............ .......

. , 06 48 :W8 8.655

Houston . - - 7:157 332421 B.452

owsmome c.ty (so-kIa 12,=) w~_

.1 . . ............

. 5060 2 .425

':' 1

,. .. . . 5 7

74 1 9 .501 93

Free- ........... ........... .......... (An-) fi I

SIR I-ake Csy (Ulah) ... . ... . .. . . 5 N5 13:15 1

. "

213

2,37B 1

. 1

'W'~Iua -(K.-) 510 .1 5

64W 23,932 6070

,-,a,,

... ... ... ...

n'In 419.679 86,032

Berse da~'~ U1 079 99

) 1 .117 5,571 1.~6

"a' U 10 . 11 ~816 2 :

.,,

"g'

1 18,0 11 :112

~%`-

.... . . ....

. ..... 1472

5 '7 7

Los npl.s q 73

2

'S 'Od.mi 11,064 95.307 t0275

Sachemus .' .' :::: : :::~: ::: : . ::

t

') b 6,239 29.392 7,162

~Greg,on)

....... ....

. 94N 41.394 15675 San Fr- ,.. . .......

8,4M 41 .827 9,326 San J...... : J===~ :. : ::::: : : N8 54,797 12,464

Soar . ... . . ......... (W-mgI .n) - -........ .. 4 - ... . 0:U5 45~199 10 .491

Tonal. to, ... - W.. .,m.

M,BB5 314,402

25241 131,936

44,461 254,120

q 24,80,1 94096

26,352 10840

24.ol 105 Ise

Column Content. ;

(10) Indudes Forms 990, NOPF, NOT, 990C, 5227 and 4720

(11) Includes, Forms 5500. 5500C, 55OGG, 5500K and 550OR

~~2) r1JUd. Form: 5DDD 24(AT&F) and 11.

3) ~udesFahn 720,730,2290andlIC .

(14) Includes Forms 104OX, 112OX, 26BB 4868 . 7004, 7N5 and 1041 A

(15) Includes Forms 941 M . 941 NMI, CT-2 . 990BL. 1042,1120DISC. 112D-AC-DISC, 112OFSC and 8404 .

5'

.2 12

28729

41,NO

26 297

28900

27,732

113) (14) its)

1 .251 .625 9.793,769 '7'adu l

113 .259 1 .310,143 3,124

10,936 76.105 112

1016A 39,056 47

21,732 223,178 58

142 .:3477 215 W '~1~40

WS 2134

4 1 80 22527 32

11,781

146

.ew 438

8J% 308810 845

7 .232 45,469 91

3 .022 31,060 145

130,019 1.197,115 Slon

19 .372 186.170 IV

1,468 128,129 7,087

3,399 9

1,393 124 7W

27,762 374 :6431 '130

34,895 188 M8 to

27 .935 " IN N

23,741 1 a 17 83

3,046

21, 200

13

243.544 i.op.W

1

31,432 220:211 .01, 17,

24XI) 1.2666 38

311' "

:7 85 154

'931M 73

,8715 IS o2 1 9 U

., 51 629. 813 35

23,245 83,312 6i

28423 ~31 100

264

67 :351

N N 1 67

166'"1 903.230 947

19,323 140 .709 235

32,327 197 .11111 279

42337 292 .N6 302

37.767 139,522 97

24 ON

10:007 11

:5" 26

4 41~

n3,117 973.8,17 1.387

9.137 21,056 43

24,840 281,989 So

26677 70 U7 54

109N 21,798 25

11 .358 45,04

33092 130437 186

23~699 41:17

31 877 331 42 9

31 :11 144913

111

,I to oj

:~3 1.

'99,986 1,747 .074 I.bas

am, 61,466 1 a

28 3,42 280,042 286

6224 24~Uli 4

W399 421 .455

208

17 .994 1115,269 N

19 .8117 2 7,261 238

26651 173,440 85

118 :112 117:41 47

4 54 66 587 14

22522 99'" o

179.039 .NB,510 Into

4,593 47,110 11

1' :"2

U .75,I 14

2 17fi 58,301 1

22270 374

1

6:BW 49

:898 W,i 5106

17.936 372,492

22.362 144003 W16

23.~ 238 U5 1

7.W6 182855 11

24AM 246,216 115

36 .2 219,465 188

95,489 141 5 306 IN

44,449 N5 532 EIA

&I'tfiis W1,857 1'784

51,650 338,590 51'

UAW 28D 3 18 262

oll"We .10 7M 732
Rlzn->-"C.~--~~Anl-1ZI-1 11~~WEP)x NK, 1 51

Table 7.-Returns riled, examination coverage and results (1986) Table 7.-Continued

I.dhddu.I.

. toed

Raturns exaanload

Taa Senlea

CY 1085 ,oda; audit- M.

0,629.001) ne.9.3 732 .4M 591650 11090'sud, 1 .10

Toad

N 353 ~ 60M 0

3 5 2 9 37 9:9()5~403 6U 'I '1 00426' '4 :'!' X995

w

8,507.1o) 117, :M 112,1126 8,551 238,765 2r8l

R-manded ead"fi-I to, and A~. .. pa . and N--W

0 ou" .ne .1 duo-) ea"Ity ""ature

4,201

"

.2S 51 5.677 -.052 I .Oas a52 9 14 Iodl .ldu .I..-1

12o 1 19, 13,933 1 .19 5

35 ~6 2 67 5523 ~9 1 :31M,

2.385 6w

16

~11A~ TTI Und" $10,000

MA PI -d., $10,0)0

10 T

1" i I TPI $10 000 odo $25,(M -,pl,.

14 TPI S25 " n., $50 (M

3,047 20 .316 5,7. IA76 B 18 TPI SN).~.. ma,

1 :': 2 W~!

9 .021

:12

15

1~1

.255 10

1 .1w

24,939

15

in -

. .

224 22

1,117,6"00 36 14768 1 .120 ~2:303 4M 81 59

14

1

N

261 :500 657 1,667 144 2.4W O'N

4~ 1 .127 3.116 308 5151 1 ~ 8 194

235,8W 3.'M 2 .478 482 6 : So 2

2.M.000 7.478 7,476 0 .35

I .M.5110 17 .210 17,2,6 1.00

2,1147,700 501,388 69 .M 2.25

182JO) 2,407 2,407 1,32

803 .2DO 5 .988 5.986 035

368 .500 5.181 5,481 1.49

4%.900 7,262 72S2 14 6

301 Ow 4 .D5,i 4.05e

3868

= Tu Sande, Ro~ R-T-1 V. T. S-W. R.= T..

M -dl- -ItW to, uWtoM

10e0A. Tin I unnor $1 0

Non 1NOA, TPI $10 OW

T 1 $40,000 $25.030, &.pie 21:11 : 1 12, :95 04 8

Tp II 10,0M n., $25 -0.

. '0 089 7W 2z:!M 9 1 :'~ ~ '1 132 M 12K~'7.2 1 .26 ;11 3:111, 916 561

23 4M~ N

TPI $25,0DO o- M'd 25 308,077 23,1~ MOM9% i ful

70 1

. 0~ M

273 338 16

412

27 4 U3 1.097 6

.7

TPI S50.00) and me,

Scoed,:: C TGR2 uW,, $25,000

Scl,.d. C-TGR $25 " . , SIW

Schedd, C-TGR $IDO " and me,

Sc'eout FTG -S25,000

~n .dul: F TGR

$ 2

.15"u

SChedoe F TGRR W.000

Rd.cla"

P~derahl,a

cen-ion.,-1

Aaseo .1 edon .

Unde, S50 000 1

SW.ODO und . $ 1 DOPDO

$ 1 OODDO unou $250.0DO

$250PDO nde, S500.000

$SM ." - $1 "t 205.300 3,868

1

$5 on . U .. $10 . 0

$10 .1 u-, $50 . 0

SSO Mil unde, $100 MU

SIDO da uno~ S250 rnfl

S250 ml and

Foon 112OF

198,700 D'U9 9,349 471

28.400 3.639 3,639 1281

31 .ODD 7.4DO 7,400 23 .87

6,700 3186 3186 47 .55

4,600 3272 3,272 71.1 3

4,4o) 3434 3434 7805

15,500 358 358 2.3 1

Small Waidem corPodolona 736,900 7,931 7,031 I .w

Fone 1120 DISC

Estate, tolel

Gn- eV.. und ., $I ~1

Gl- -1. $1 m' unde, $5 o, "

Gn- - S5 ml .. me,

Gat

13.3w 1,379 1,379 10.37

801700 16,744 16,784 90.80

613,500 10 .0% 10.11% 159 ,

11 30) 5= 5,2DO 460 2

900 6B8 (WI 76 .

97,700 1 .560 I'M 1.90

1-1 "weand Dftr idial

1D6 957," 411279 732456 59.550 1 .203285 1 .1 3

E,c~

~Pwymeoo

windian poem

M~.Iiaovo ..

Sid,doa oi,ned conoctiod s

Net.

: Tool.-y -

add due

M ounoogr

T.duadoo,

Total g - -.=

Bah. .. Meet -M.

1,10994 411 .589 ",us 4 .05

27.40,300 35 .327 "'M 311101 0.1 .

10'soe 2,4412 3.626 610" 57.110

45

5114 .0n 5",0254

0 67 4~1 1,4W W 118 4 &hadullC TGR unde, S25 .0)0

2 21 12 24.69 2 5~ 1,W1 4 Schecd, -TG

006 708 7,N3 1.747 10 17 C $25

.000 undo, SIMI,"

"WOCTGRS100000-me,

6158 613 254 2

11 14' 6 :226 1,017 270 232

S~hao . . F TGR untle, S25,000

1 1

10, 8 112 26,719 3180 704 12 23

F TGR 5."und,, $100 .000

wule F-TGR $100 .~and -

113 0 113 15,116 16 Fkduoa ~

19 pedt-ohip.

10,857 10,857 181.901 IS r~ponatjo- idea l

1 SO 160 66518 15 Assets no -Mad

45 45 7455 24 Undo, $50'"

55 5~ 9,973 25 $50 000now S 1 DO 000

213 293 40.383 23 $1D) 000 n ., $250,000

51 5, 12,515 20 $250 .000 unuo S500,0DO

4 47 12,249 a $500,000unon $1 rnil

W7 337 36,037 15 S1 dunod $5 rn.1

153 153 41,968 12 $5 d unno, $10 rn,1

7'71 K113 10 $10mi unde, S5D mil

'2

72

141,071 7 $50md undo, $100 ml

we 908 277. 386 5 $1W rd) unde, $250 rn,1

7 .7~ 7,754 2.257935 2 $250 ,1 and me ,

1 M 1()q 305,051 35 Foo, 1 1M F

1 .0 140 17,6U 54 B-11b ..4--nodded...

29 Fam 1120 DISC

70

1,7M 9 "M I.. I.-I

,

1 . Gn- I.. und., $1 ml

2.2 .2 9 GIM eane, $1 A unde, $5 =1

20 M '9978 1 D Gn- -a,. $5 nui no me ,

20 202 100,01, '3 Gift

16211 1421 51 11M1 19. 21 1,141 112 11 11 -W.I. and g,", 1-1

lEad .

30 1 311 ' S 1. 1. IS

on 9 us 40"M 2,07 25

16,162 13

W-t

Windfall P .11,

MI-II.Mou.

7M 7116 1 .362 S~Io,-d" co'daAlo's

S-ce cante, -hana rwe Cy CIM is not avotaUe . SO- canter exanunations reaufted,n 17 poCent -hange r

I
52

Table 8 .-Returns riled, examination coverage and results (1985 )

Individiati., hind

1NO TPI'undw$10.000

NonIO40A Tla-$10.000

TP S25 OCK), simPle

"100:3Mander S25.000 . ciamid .

TPI $25,00 p . nder, SWM 0

TPI SM.CW

SC .1. C TGR r under, $25 00)

Scraam,, C ITGR S25,000 $ 1 ima., S I W CM)

Scandi, : C: GR Cl and

Scand, a P-TGR ,d,r $25 Me

schad" $'

: 11

: TGR $25,0M araier SIM 000

Sonedul TGR 00 .0DOand(nn y

FleadWry

P-nnitn,

C.ii,emalems. acn . ,

iiaters, net reconnal

Under SIM."-

SIM .MO ader 51 d

$1 land uncer $10 nit

$Ia .1 Under $100 nyl

$IN nal and -

9=11 buithasses resnocrestionat

Farm, 1120 DISC

Eartaft, -1

Gnais -,a ania,r $1 .1

ain

Gross Me Sl ant near $5 md

Gr-..a S5 ed no annin

morn,daton, and an . asial

lEachis

Empartnaeral

winct.11 areas

SAI.C.1 1

Service cancer comactlems,

Namt : Totals may not add d,e to nxinalmli,

Total Pcsit,.I-,

Total gross receipts.

Includes 12,500 Forms 11 2OF net allocated 1 . Corporation clastare

Balance Mean assals,.

Astannar Remannes taireseleadd'.

R= Tra, Sennilde Total d paracent

CY 19" Rom ... I., darearas

96~4969900 332,574 810,943 In .075 1,26StSO2 1q3 I

20806WO BrO29 50.175 15,610 21,53'1 02~

9,980 .000 7.182 28,455 7.894 4,1

6,874,000 114 .80C) 116,M 11 7ZK3 242 .757 3 M 2 N5 511

20 Cod 1~M2 2.249 23 1,36(1 143

417 4,2370 3 31lli 542 8

W .M 13"

:1 7

000 2.779 519 10,510 4 6

2,013,000 7,479 36 7

11.115M 21,1535 385 21 .WO 1.4 2

2.465,800' S8,947 511,947 2.3 9

181 .300 2,820

1 .156,100 10,720

881 .600 15,31 3

192,100 13241 13241

34600 10 .297 10 .297 N 76

7600 65M

653.600 6,317 6,317 0.97

12.600 1,286

$1, 'eal 17,344 1?.-

73,M0 11,7M 11,7M

6'W(l 50,43

500 ~3

26,103,90a 24,823 2.356

119

5MI.75 S54.876

7,1146 D.3 9

2 .BXi 1 .56

10,720 093

15,313 1 .74

6556, 8626

1,285

21 .33

1591

5,N3 73 N

M3 10860

"Ism I'sato I'm 2.1 1

103 .3~.WO .7,382 811695 122,075 1,381 .152 1.~

Sal"500 45,056 162 45.218 8.27

27,171) 0 .1 0

I'm 1,913 3,166 Slon 45.3S

119

- -11? %`!iAhMiM;~RKAr, 5 3

Table 8 .-Continue d

Recommended takfitiomr: tedi and pararldies, S)

(in .11-.1 deses

R'= .. T" """"C" dhor -at..

Tod, ,

3,610 1 .2. 61 4,91 8

101

7 9 117

~2 3 aa, 5612 78 P 5 32

62 15.573 99,395 17J11 11 . 37 0 0" 49 a, 7

It 109.768 22.

"it ; .7

167 81 8 13 ':.1 25 2

7. 2 1

"J=

.:0 4

2~ am 710 345.337 .39!807 451 062 02 28650 331 19 615 3977

376 17 16 TPI

'742' 3 19 15 To Sl'0'.UOtudnaO,'2", M5OM=jr!"' 959 465~ 15 16 Tel $25 000 tmmp, SW,00 0

2 .M6 17,13m) '1 .393 9~ 11 21 To$50.000 and me ,

1 :87 .000 11 .011 15,032 1 .0~ 27,097 14 20 1 66 4,01K1 2

23 22.BW 2.277 48 :627 55 531 . 7 2 242 7 .9M 37 :4

7 15.266 1.669 179 540 678 91 2 771 18.WS w", 000 245

12 3

2 91

125 6 1 632

.5

10*5114 10'sel 179,15 9

162

1 64

w

N O

69 5

123

"7

1 0

305

269

242 7 249

a

628 028

I(K) 10,659

No 25,7N

1,393,556

123 19.1509

737 42,50 6

1Q 13,6811

306 60,54 8

126,736

a 66,729

rinamag. Ca. -it No-chainge

density ", ninhern pencramt.

R%,X,at soonTas S.M.. R.=

., a

.- reatinTre,

tons

10'ase 1,539 496 13 17

" O 0

N 7

'

c,a27 .96

2

l,U6 am

.323 909

5,946 1055

162 57 .5n 16

5,932 24

269 494 .06 7

143 143 75,089

1,124

1 3

Scryce Center nd~driangeaate by claw iS not avaIstre, Sawe Center Oxaminstrons resufted in 24 percent no-dhange,

215

41 2

13 14

12 6

12 1 8

2 3

16

20

1 0

1

7

2,204 23 7

landiwifiad" total

Won ~NOOA TIP ,do, SIC ."

N A~ Plimd"S10000

Sch-le C-TGA nde, $25.WO

Schoode C TGR $25 CW and,, S I M,OM

!SChecd, C-TGR $100.000 and a,e,

1:~1~43 613 7 7 22

222 1 ~;2 2

FS~hedul, F TGA noor $25,ow

17.381 2.9'NG 99 ScAWSe.-e -TGAS2500D-d&$l00 n .MO 2 2!5 emleF.TGAII100000andow,

6*0113 2.971 25 FW ..I.ry

ptannentalp.

Connotations, total

~ala -, .-a d

Under $1 M.M o

$100,0M Un., $1 nr

5 $1

l

rat -r $10 rml

695 67,530 10

9,136 9136

$10 ast a., SIM - 1

$100 nit no ..,

33 Smatil businanne caniparenonst

22 Fear, 1120 DISC

to ftest'. total

10 Gross -a,. unda, $1 nal

Gross andle $I nst and., $5 rat

Gross orrom $5 mt and ino a

15,219 1,249 61 16.528 U017 1 M9 'N 14 17 finciand,estal, and at, ..It

__jt~12B 121 2,045 in

169 1 171

E. .IEmploymen t

Windfall imelft

7 inecalle-t,

SaMce center corrections,
5

.14 .~leAifo~IV4---d:.14~flftA-IISE4,,?,v4,4e,,~,-,-.~.,~.1-~m,---P"2"~l~L!z~44~%L,*4~r.4.",7.!,,,'~~3;,!;~,r,~~~~".Z,.~-,~45~~,.,,.,wm4-,'~,~~?4~i:!n~~,,,~~,,i;~~

Table 9.-Additional tax and penalties recommended after examination by class of tax and by

internal revenue region and districts and other areas

(in thousands of dollars)

S.,

Total heNW-1 Fw ..I. C~ Insists, S

Send.

.,Y lon,

112D DISC

Gin Elclw a'"Ool" M-1.

.... --. P.11" W-.U.

W,nn.T,t,1 ... ...

.... ... .... .. 19.27a.563 5 .816 .962 113,039 10,857,290 139.857 70 .06 202 .035 149,5o 310,S25 142,620 985,333 817

M.. kUa`n', ::: ::: :::: ::: :: 3 536,415 10,694 2.947.249 17,795 83.573 2.M 11,454 94,12S 16,236 226

.. .... .... ... .. 1.980.32 522,344 2a6O 1 .270,164 24.972 1" .503 3,628 17,422 30.060 2,609 2,M

.. .... ... .... .... . 1

.763.706 8,60 .585 3,233 729,225 1:1,11 121:111 1710. 2D,M 11,.71 119 2,631

"S 865 3 M,329 5 .086 684.727

4 7,

. is, 519" 35,747 15.576 4:21, 2,414

... ... ... .... .. 2

.623.062 S11,411 71on 1111"

:ne

14.935 91,76. 29,7955 17083 15,755

2,

440 393

2.

76 2

W,Mem 1,4:13,1 . :."2 814 .5 1:* :31.1.1 21,311 1,. as Is,311 . 124.952 132, 11,496 124,711 2 .735 976,264 "1

N-Atli;~tic Region :

.

. 63,111 1,331,331 1,1 100,511 1,431 11,711 18,324 12,171 M 699

AI .W......... ............. .. 34,519 1 S ne 604 l2el 61 4, :N 38 166

1 12 6237 - ~30 '60 2 729 5,378 - 31 1 2 741501

491S176 I'l .11 172 11, 24 Z I S, 'l N 2T6 2

4

.. .. .......... 1.. . ...

2 2,~

1 - 1,996 194 16,236

... ... ............. . 2555 0 44:33787 498

104296 515 1 N

11 " 7270 - 5949 1,528 2,877 462

-

16B -

B.A~W,a, .... .. .......... .... .

.27 -

427

- 67 1

0

.aW .,d ........ ... 4 .U9 52 :4 3' '1 6125' 41'21 an 1 :1,1 1 ~ :2777

47 .

. 6 ~17 2 -

M.,,ns- SO 199.603 7,427

",J,:,oS a 4

P 048

: 101 2,442 7g mi 8

642 1.336 228 55,632 71 1,242 30 94

NoOtiont. ..

. 26096 7M 56 16.500 1,561 1 age 17 195 1 - -

A.-. Sa~~a cw~W 29D6

12

2906 - - - -

"'onk.- Se, ..

C ..., 3,342 3,U2 - - - -

Bass.. ........ .........

. 380,287 257 02 20:571 1,321 3219 12,4

Onana, B2,185 22 :42 - '423:3297 90 777 -8

2.41 5

S ; 4

'V' ~

SjZ & 11

5 645 159 .167 780 394 .069 19.156 , 4 0 004

N -

-

185 8,055 381 3 123 1,050 - 69an w 556 2N . 4 5

P .-gh.,.. ... . ............ 277,889 3 7 2,1 406 22&67 31 9,152 39 441

'19

2,288

... . ........... 188, 397 84.970 1 23 58 838 36 11116 1~71 ~,76 1,73g -

92.288 7,221 137 2 2W 1 '1. 7 264 1 .170

Ii.,..

.

....... ...

. 3,716 3,716 - - - - - -

S-theant, Region'

21146~1 1 : 7.635 Sin 107.125 1 900 20.833 6627 3,525201 1.3518 418 -

37' '0~21 309 13,199 '39 86,t 69 146

G-on 123

...... ... ...... 38.1 .1 -a 10 8,601 63 - 2.699

.528 8.841 440 79 7.696 1,1~8 2.900 2

'571

29

J . .... ......... ....... 44,3M 2, - 1.619 1 16 IDO

.-H .. ..... ........... 536,478 356,623 368 9 0 1,521 109,19'; 39126 53,253 6130 3.667 1959 18

257

42,899 2"

298

5" 19 6 629 468 352 6

132,52101 27 167,W771 221 11 all 3458 2,796 2,

No. Oal . .. .... .. .......... 374681 ~ 3S, 2~ 2n690 , S57 1 P 1

2,1 172 a A

2,512 2037 2,5,l9

Atise, a S-C-er ... 5415 5415 -

=~hts Sel~o CeM11 4,122 4.122 -

Gannet Region :

D-nal, 402 .205 0,814 W3 340409 ; :17137 ~go 11~1 612 1 :1 all 4 .211

On- 29 .966 JZ598 3,592 14

72

Dat- 479,789 a, 15,90 1 :30 150 329 Ne 7 we D J?o 3 952

2"'

15.670 7,831 t,913

.daina 11 4

7

:611 58680 414 38,713 72 10407 1 .321 3 .1,70 1Z 1 7

1 83 :16 703 38 35855 5,394

1

24 M 2

30 .811 187. 2 381 7,617 2.m6 687 8% me 4 C'M

7 .292 .292 - -

Misfie- Reji6W. '

A 0- ................ 11.351 7 1 .7n I 1.64B 131 248 176

Ch-go ... ............. .. . 8 691,1 6 4

1'046

275:222 4

813

870

M Be 36 30,96S 1 .315 2,B33 9,7- 23,440

Des 11 ,tag, . Is ..... ..... . .... 171,711 35.M SO 121.267 S 1 . 7:498 6~ 5,163 1,424

~2W,i .262 25 6W tg~

2

063 367 141 216 ;2

.2

,o

MO-k 411:1 14'~9'30 ~2 43S,3% 716 6,28931 226 3573 9 301

1 .24 297

2

0'r .

. 55

32469 41

5,4

936 16 WO lag 1 269 847

St L.rii 314 62 246 6,B 233.963 926 10 0, M 3,243

3396

1,on 1 . M

S . PaW . .... . ........ 216,090 41:1 217 261 it 298 19.911 555 363

529 "6 , 7. U7 13

0

Stp-ol,.Id .. .. ...... lea. . N T 923'~ 10,769 3.50 2 .MS 465

Kansas CoMa~01, S .Mc e

6,737 6.73

S---4Ia~w. *

Alzvq. o.. .. ........ 2,4,956 171 95 5244 a 1,896 231 121 64 A-,,, ............. ...... 178438 83 : 71 40,072 555 48,145 M9 3,054 1,408

62

616

45 M?

C Y. .... ....... 46871 ~2 .571 7 20.357 50 12 056 211 55 Claim .2~

.Jg 185 296 2,561 22.127 111,330 3 .5aa 11 163

735 302 D-., ., '22.'§13 11114 620 41?4M 1,74S 6 963 3667 932 883

2,

- -

. 6

H- w.......... . .....

. "age'll"

23 .426 10,159 798,172 2 .172 12 6SI 5132 5~ We 23:432 BW 767 -

owiai,on,a Csy 210837 428 190,500 373 144 1 010 205 1 261 Man

P- : :

: 10 .

lF91 99,12 6692 69 465 68,199 0 , T2

S. L .k S; :0,7 8,279 14050 811 no

M2 7.52 1

VY-1, IN.797 37 , 0 me 2 264 64285 414 10,260

15 262

16 3,9477 78.6m

a

00- So" ",s"

. .,n S.- C-,, 17A 9

5479 5,479

. 125 - - - - - 8,726

-

W .- R"'O Solas A~hta. 1 55 ~5,978 ` 111~6

M 27

1 143

"3 13

1

522 71 :' Sal 2572 ill 3

j

169 938 7' 737 Hondid 471 43,577 56 32.658 9853 1. 180.a 693

34 -

L.ag M 1,1-01 . . ......... .. SM,517 3,10486 135 144 :150 6~671 26 .5C)2 i0l 1,789 2,9873 411

L-as Vegas ........ . ......... - 131,8m 77953 W 1 1

9

Los 4 ~

4 ~242 623 5294 467 6~ 64 122

P., Mg.-

........ ..........

. 1,00,788 83801 "240 462~953 9.000 21 884 882 6.351 5,676 40 .453 4~13

I.,,1 ............

.. ........... 118,176 So 246 467 02

71 6, 338

1,248 2.498 1,678 -

S. 18341 69.662 43 .661 35928 M2 8272 196 4.M 1 .102 - -

Sa, 619:705 351347 11,899 198054 9010 5!8317 29 Q5 8134 31,403 14 455

Sa~ Jose 39 .1% 1 10,395 549 233

:973 ~o 5

Seattie . Me !429 7S 1211 35

"102 '557 - 95

F-6sc- 36 9

114.231 760 64 65 34 2BB 043 21,115 148

191 3,9, - -

~i~ 55

Table 1O.-Number of returns examined by class of tax and by internal revenue regions,

districts and other areas

"

.d. anal a .,

Total 11,11,id,tal Pont- Odll~ = onlins,18 Eat-

.aip say Gin E., E_P.,._,Y_ .1 .dtI11 MI-1.I P'... P.M wn-..

Ntnth .Total .. .... .. .... .. - .. . 1,234,7ge 1 .090,949 17 .216 7,478 59 .688 9,310 16,704 1 .860 46 .589 38,431 21,037 20 .519 SAN 43

Atlantic . ... .... ... ... . 149,600 1111,411 1,625 1,41 . 9 .179 1,271 2 .649 174 S.- 3,217 2.9 . 2,143 W 2

141,1-Afte.11. . .... ... ... ... ... . Ise"M 126,601 2J50 fiff 7,410 1,131 2 .283 16, 3..14 4.594 2,155 2,S56 0

SC:~ :hl It ... .... .. .... ... ... . 209.208 175,070 2 .233 Sea a,235 1,4.5 2,170 416 ..'as 4,516 2.2" ~1,7. 206

Mis 11,*:: :::: :::: :: :::: :::: :: : Man 11:.11 l.m7 M 1..13 MOI 1,952 218 4.935 3.078 3.595 2,631 240 0.lS4:. ~ "

. 7 l,.2 1,655 9.232 1 .607 2 .577 372 6.204 5,692 3.353 3:1 95 2

303 M:1 41 20

.

W-- 259,334

.S42 3 .706 755 8 .585 1,374 2,244 301 9,170 7.,103 4,034 2271.1 4 .,111 121

4,123 1,485 10 .221 1,331 3,001 218 8.597 7,839 3.326 3 a 3~

2

N-h-Ati..1. Region:

.g.'.Y 8

.928 7~111 42 7~1 11 97 232 16 38147 435 -

A

2 3 'S 4

4 0 204 62 31 38 2

B- 20,912 16:166 172 379 1,611 45 1 .1 51 997 909

auflaso

-W, 331 S :~244~7 'S &1 3 M 14 1,9140

~6 9

9 10 - 7~8 139; 2gW 2.143

aud~,g,,,, 17

03 So 1

74

32' 91 259 41 1,134

4

- 7

2 .5l7 1,922

16 3

2

a

2 19 3 141 195 -

H.,I.d 15,597 12.5M 2N ifli ,

3

M.,,hats, 11:4113 212 22

P SO

:~191 27 12241 49744 2535 395 1 056 29 1761 29 96

227 375 26 410 291 8

2

183 26 60 4

18

P-is 3 A~d-,~,- C 774 3774 - - - - - - - -. 1 2 . 1 .995 24 33 317 24 49 2 112 736

Blonk.- !,, ~,, ,

C-i ., 3m8 3,8M - - - - - - - -

29,413 23,490 654 t5i 1 .215 142 379 34 788 398 1.184) 962 20 F,,,,g . 0,..... ..

. - 1

4

7 "' 'J 176 - - ' 640 287 ' I Sea

2

41 :45 .

. 7~ SW18 2;1 2.22' 355 0 281 975 18~4 2

P dtdalo,,,~ 26 005 22,763 426 129 1,227 2N 429 24 3750 429

-

P .., 1 1 1 1 4

42 WS 19 R~Chllg 23"~2'10

1~2:11

194

140

234

89 w 6

53 1 .24 266 289 44

1,2M

663 1

228 33

22 1

3 0g,4 2603 26 23 232 18 64 5 55 68

Phiadephl, S--,

reMe'

6065 6065 - - - - - - - -

SMt"- RI91.,

At- 34.~217 1~ .1~19 116 66 1,116 in 384 125 D2 868 2,284 3 .754

S 13 7 9B 38 Sea 6, 23 11 Sol 26~ - -

Gns10470 8979 100 13 42 58 - - 308 589

I .- - .. ... . ..

21,4N 1 a 26 214 ~5 W3 18A 243 56 8N -

.... 9.018 7~N 72 38 an

55 - - ,- a 52,071 44 119,10 87

OW,

.574 799 294 2.259 597 966 1;6 1 667 10

6996 113 20 4 11 6

2'1 :34lo 17.714 222 107 762' lt 262 50 1 3180 3365

N. .O,la- 23420 20 .090 229 33 1,124 lw US 42 863 419 77

Atin, Se-a Ca- .., 6,499 1 :4"

G.inM..Pna sa-a ca-, 6,747 S 147 - -

.._1.1 Rag an:

. . ...... ...... ...... 21414 3!11 217, 124, - 3n 37 732 296 3095 2 .01 1~2 d .- . .. ....... ... .. 24,962 ;a 856 ~ S 2 5 1419

141 221 4 70 492 27, 470 174 all 358 517 30 1.922 769 - - a44

'I 'S~oN23 12 '.741 141 177 . . 274 308 12 117 1 7 37

L-w1le . 9,169 7,482 91 47 521 68 ,41 24 , S3 613 29

Pa,kersW,&,,, 5.880 4,

585

C'no-,

44 45 523 46 96 15 122 391 13

Mine Reia

C.ria, .... ..

n

..

:

....... ... 4.853 4 .853 - - - - - - - - -

A= Ina 2~5 21 31 128

51 73

4 218 127

ci,- 1 "41:225 337 .478 755 752 2305 406 568 50 010 1 .4M 3.3,~] 3 .3TO i7

F,, 4,874 4

605 761 72 31

7 156

~4 1,20 136 296

74

42 125, z

Ta

" l' .1

123

Hal..... . .... ..... .. . . 4,78D 3 31

2

~ :968 4 ' , I IS .4 71 24 US 76 Mlwalk 18,757 2nS

2 1.160

1~169 Z 8 2

7.251 105 0 8

Sol 83

40D 31 32 557 260

Sl Lo s-.... ........ . . ... .. 18546 14,

`M 2 st

1P,,1,fi1C11 ~._

: P'.1

....

.

.

.

.

.

.

..

..

.

.

..

.

..

.

.. 17 722

. 11 ~580 8 a 76

14 .750 2MN M

11

114 1 To , 'o

1 :21

.1 .2

215 11~7 3

268 n

83 356 130

20 47

450

. " 1 . 53 5

515 25

c-, 9 ., 1, - . le, 9194

S h- eegkiwt.

. ............ . ...

4' 2

1

11 N'211 323 6 217

4' 2 114

A.- .. .. ........ . ... 33,262 2.

1 S 705

214 277

2 , , : 20

C .... .... ............ .. . 4 .333 .117 51 1 53 066 l a '

W. 3 9 " 19 " 8 317 73 - 1 2 D I as ..........

. 56.801 43

5 1 '26

2W 2 .076 287 Sig 4 O~4 2,236 490 15

4" 15

:460 399 35

; 1.036 1,035 -

H on M XSE 3.

.46 1 10 226 867 ma 103

14

' .a

30 at 99 158 250 31 " 7" 206 OWahma C y 23,177 19.012 159 985 14171 2271 27 1,942

P-.-

.7 221

Sal2 151 18,876 582 0 59o w 557 1079 3 4

W-11a - S 2,6

12 .131 11.190 311 1443 n4 75 '1 - 226 193 -

6 8N 136 275 0 ISM 2,36, 32.

A

Ogda, Se- Ca,t

.- S~a &e.la

.

:

1~4'9'5

7, 9 7m

1~':SB'9 - - 3626

g

Region :

6 :229 5407 91 27 321 24 23 4 224 106 2Amho"t" 6

B. .- :72 N to 17 8

. ... .. ........... 7,238 '6

226 U 21 341 573

'I 1U11 4' W77 Ill 1,U33'

44 1 113 Ill 2

Lag" I V I 1 1 'J 11 . ... ......... . 14 .111 41 .667 , 1 '97 1 7 J" 350 26 1,033 1,01, 04

02 213 52

46 1 43 So -

Los A

:,:,:: ... ........ 0 .457 52,066 1 3 24 124 2 0 1 6t 3" .7 31 1.1" 2,4 949 1 .287 ;7 15,787 12.345

27' 3

220 29 1.013 In - -

So, 15

28,851 23.987 362 1 8`1 1 .32OW9 013 366 1 . 1,936 76659 - -

:12 2 .1:1 447 565 1,610 156 me t7 4" 7 715 1,035 1,369 475 16 .~ Joan M M

1 5

4m 107 826 ~37 2"

41

624

4

Seaitte .--.. .... ..... ... .

3 3

. 35,8 " a 0 454 181 1,059 22 224 18 egg - I

P- Se,-. C-~,, 4,1'702

4

1772 - - - - - - 757

1,3Z2 9T3
56

Table I].-Rcturus examined by examination divisions Ibble 14-Civil penalties assessed and abated

(dollars in thousands)

1265 19116

Inalydal

Daedq-rh,

1 '

16 ' : Is %s:= 237.M6 279A259 1 .4!58,746 1 .M,408

L124., :175 I .IN W7

02,708

~41.:4" 55 :063

74s 292408

Fa,lull

Bad A11.r,

F.. . l .

da,

T-I .. .. . .... ... ... .... ... ... .... ... .... ... . . .... ..

Table 12-Examinations resulting in refunds (excluding claims for refunds )

Nuddlon, .1 -da

. A-da -anand"

(,, hroleande, of dollars)

191115 1986 1985 loss

In -W ........ ... ......... 69.695 56,428 157,312 137876

6

448

' 00

Faluchay - ...... ......

. 1,D36

':4

C

821 4p2 Ps

Ed. 2~'729 &667

On 2 3, 11 2~ 13

4'

sN 2 728

.37, 65 ~ 68,8430 5

7112 ,4470 32,141 lp 1

.h. a- 22

T. .l . .... .. .... ... ... .... .... ... ... 01,713 6111,310 742,526 730 .810

Table 13 .-Results of collection activity

(in thousands)

ImplyC;~~Iiatiu* I tio- ri,horn

dat .,y, ..... . ........

CI-d -noay

M-1.1 -are

il~~ Be)- ot natural

"linou.." Indiana fidn"ar"SpalReturns ann,laiWate innandfillatIOM Claaard .... ... .... ... .... .... ... ... .... ... .... ... .... .... .... ... ... .... .... ... ... .... .... .

M1~1j,na,e,d, Inhaddilgations closod .. ... ... .... ... .... ... .... ... .... ... .... ... .... ... .... .... .... .. .... .... .... .... ... ... .... .

Offia,, in conalanarrifin nicelved ... ... .... ... ... .... ... .... ... .... ... .... ... ... .... .... ... .... .... .... .. .... .... .... ... ..

Entah-1 .

.."I I-dal V I,W ...... ...........

at ley,-W- had parlars

~oinr : Tooea rday - add 0.id-nonig.

AdarAted to belyhoe i. -neng daefflyd

It- . . .... ... .... ... ... .... ... ... .... ... ... .... ... ..

Fal M

Federal tarl~,-

Bed

Fraud

T . ... .... .... ... ... .... .... ... ... ... ....

U,ine .

raw . .... ... ... .... ... ... .... .... ... ... .... ... ... ... .

E". -d Gift

To'nIl

**'*"*"*.. . .. ... ... .... .... .

Bad c~k ..

F-d ..........

I. I .. .... .... ... ... .... .. .... .... ... ... .... ... .... ..

N .-hord I . ... ... .... ... ... .... .... ... ... .... ... .... ..

Toilet, W, Chil peandans .. .... .... ... ... .... ... .... ..

A--. Abefinnent. NO N-Mliat

Wrd~r Ananal N .-

. Al-a,l Nuant,,n A-rd

2

:578 !599 ~,Ua 226

72D,142 985555 i9a 5 7

6.71 055 365.937 "

23098 2~753 IS M7 1 J :'17

:M 151.270 7%

221?

,

46i 245,807 11.311

1

. 076 52 it

.

133 , Ne 177.7"' 2..818

11,620 .122 2.4112 .290 3n,4117

336~909 59 5577 4

IM087 M18:44WB M:W78

431 S 3W 899 183.1 5,1

3.627 92

1 '

603

26.20 23

3. 5 8 28,898 205

13 "1 138.037 4,943

sw". I , 507,092 '

.

4"

1 .114376 70,092 WsW3 s

222 1 :2

2:222

714

5,181,985 We IN 1 .~ 53

9M 776 620 i6o 356 23 1W:4M 2:948 1 :870

557 1 850 6

41

1

a .917,512M

17 1

135 2,218,946

117~41~ 15100DO 76,

29 '2 2'

A 7

:481 27 24

440,

2114 M

:2o7

26 189 45.731 7.910

4 Us 86 io)

1~594

5

. 637 22~

288 'W

3 9211,1123 249.513 2N.23 1

9,225 53.179 4,463

6 254 1 1

16 967 36 66', 13,185

33 66 57

30 87 8

4

5

26.673 thJ3

7

70 17.725

1 3,1 237 311 ~411. 133:20

42 Us5

2,128 36 i's

98 4 w

2

10 ;4

IN8 M 185341 6875

. -

NO 407 182,870

IN, I 1 1 2111:1. 20 .27 1

22,913's" 6,928,265 4,331 .979

146 .0 2,139 406 OOCI

5N 098 A2 521 .585 391.457

~ .525 5 .1312,118 311 :412

407 224,585 2 u s

23210 11.055 125,050

46,565 211 5796,.063 199,242

51 2

23 4W 109.148

jsi~ 326

e89,932 10,242 , 655 11,392,3M

423 7~ 1"

179~28,i ~71

272,880 NB

273,308 248741 110 T

31 3,508

6

3 , 58 6w 22.

2,376 337 522"'

37 9~ :.72

'20.022 U5,085 67.070

NoOd Ynth the enotarch of aranyated w . peradlim can apply to dry tax year Abaternedis wn appdy W any w year

11-1- widener dehI hadon' lal-1 -0 Ipa

W.dee F.-1120.990C and 90T

3 jrCl one Fo 940 . 941, 942, 943 and CT-1.

Me low achroare Forms 1041A, 522T 99OPF, 990 . 4720, 4638, 2M 11 . 11C, 720 and 730 .

Induclair negligence add idwallan-a

1

.9~ 1.692 nduderr 10-1 10,11~ 1011 11d,nd,lidull ratherdent -M I,,.

2 2 6P Lrdud. ponallan, unoor the TU Equrty and Focal Reirld-bitit, Ad of 1982 and the th, Rejohn Ah a 19a4,

2 .4" 2 .713 .41 9 than $500 .

169 "9M

S914 062 $11,921,808

618 ,Uo

1,396

466 1W

1 .04D 909

III 2a

121 117

5 6

1,418 "0' "M61 1

25 22

260691 1 978 5,13 502,4ai

1 737 3978

1 86:043 3.95B 232 1

3485

9D 753

444

1

, :47~7~1 621~546 11 4

28557 42

4? 508

162 4 7 Ow'7" 6,698,525 075. W7

M380 WO,952

41 8W 1 s'6732' 2'

22:388

s2~ 1

N ON 7,3DO

30,934 1 8 279 14.797

12 837

74

2,2

1

. 373 536

74 257 we

Ins'"a 71

4,692

us

52,925 4 .762 254

8 56 247

35,167 3,7n "~ii7

42 282 24

194 22

9 6"128

1111.50 2.825

196872 114~21 164.620

8

: 1 so at "t 4N8

13 ZO

10

21

-

2

10

1 .

74

3.

185 .617 1 .4 .1 (276)

31110,791111 105,932 169.691

SO.370 85.$Q 217.208

3,4113,0811 115 .6411,6711 3,513,1"
58

Table 15-Appeals Division Workload Not Before the Tax Court (Nondocketed )

ad .. .... .. .... .... ... ... .... .... ... ... .... .... ... ... .... .... .... ....

S

. ... . .........

Disp-d Of by Agm,nent .... ... ... .... .... ... .... ... .... .... ... ..

'n' R .1 ..' - ......... . .

ShOters . - - - - -- - -

cb'~ Of " U..giaas, . ... ... .... ... .... ... .... .... ... .... .... ... .... .... .. .... .... ...

kiiiebarl Of C--'

12115 1966

42,450 52.390

21 211 Z838

16.2 , , 22552

33.4~ ~Mo

22 BA 23717

1 WS 1 0,913

3,000 2 .41 3

848

2,20

2 .152 , 67

1, ca" ... ... _,.-a -, h c--.n .-Wade,uaa that Ty 00 co-ser .1 ohd disposed .1 together C_ dosc~ C. h datr~ a-y"=0

by "Ma's

a,

. , udo, acOu. tjW,e-n inventory .

-rety shitUng r- horcockatecl to doctored

aust- Hw-a, such casat moored unagread for purooeas of computing the nohdxkated

Aphettis" .

ag'serhare

.to of B5 4 percarti -h-d ~, the socson o n

Table 16-Appeals Division Workload Petitioned to the Tax Court (Docketed )

Number Of Carats'

1995 ION

33.9n 3B 130

; '12 1 U "N'W

DiWaad of by All,aartra t ... ... .... ... .... ... .... ... .... .... .... .... .. .... .... .. .... ...

. 23,300 25,W

a 17.922

R.gulsr Work .... .. ............ - INW2 8,019

Sher- ........ .........

3,566 4~026

3,25 1

2.711 775

s a U

;A~reprmntstaxMversgrwpedtOgMhebyWWI~~lh-~O~ .r,d.twl~MUMt.hral,MayMcDn"M'ed'M d ,sp=dcgtogghel.

C~~ketedinthcTwCmd,nrmp~toamg~otdelciemy

=,~.,_a . ths, ah"Oh-uahh, the . or -.f.d try Couned are

hca,dod H- they are excludad,n - .~nfj the 89.7 M,caht doccus "

an he . th ao'n ~he

sachort cr~ Ad-91.1- Appeals'

hOcauso hey e,are sh,cady sc-dead as unagreac, for Pu,MWS Of cw tng the nchc1ockeled agrea,harl ate,

P-are lcu~ao .hs . ... ... - ...... . . . . .... . ........... .

None-pt chrusable tructs .. . - . - - - _

~hor, aghc0ture, horoCull,re . . . .... ....

4,733

1

,

1.913'

j :'31

2,305

2,1114 62 52, F.1-a

Total . ... .... .... ... ... .... .... ... ... .... .... .. .... ... ... .... ... .... ... ... .... .. .... .... ... I .. .... ... .... ... ... .... .... .. ..i. .... .. .... .... ... ... .... ... .... .. .... .... .. .... .. 21.93 7

Table 1 7-Requests for EP/EO tax rulings and technical advice (Closings )

s,ubf..

Total .... .... ... ... .... ... .... ... .... ... .... ... ... .... ... .... ... .... ... ... .... ... ... .... ... .... ... .... ... .... ... ..

Stock P'MOIIV

locrui. hTable 18-Determination letters issued on ERISA employee benefit plans

L-bOumed

. .10.1 KIWI- MILI .......... ... 7-- P,M,C,pm"g sh,pi'Yeas

A-W ...W:

T-1-11-

TMI hire . 1 . far I., lashitisal

.. h .iltrig. ast.1c.

9 .857 9,237

. ..

'

:112

4 3 U

'if, 3

3 .7 .0 3 .41`9 19B 21 9

ESOP

Total

-defin

"

.09

454 11 .065 480 28895 172 4

318 .~5 289,~ log5l 2 4 .082.328 82 .1153 2,M4 11 1

63

12

o So

1'w 56,692

0

5

25

0

1,M2 114 o 7 o.825 436 175 1971 2

5,571 105 7,~

a 0 1 2

' The ter-abon row-ii systert, coast hot d,stingush befe,ech stock tonus ald ESOP purns

13,31420

W'. .

ba-fit T-1

'1 :.'7'7' 7.111a 96 '2 :'8

66 ",6

79,72310 2!A .92022

9 .987 23,301 5 25

1*11!Mla .1 41

Table 19-Number of exempt organizations returns examined by type

501(cX3)

50

M01 T 1P ,

-7
60 i'l-nPUM, M

Table 20.-Number of active entities on exempt organizations master ril

e

INS

sabdon 501(c): 24

36 0 17 ~7 ..... .. ........ . ............. .....

g-4- argima

750

2

. . ba ........ . W 435

(SI 'rS.`,=,Z' 1 'M

norreetic fiouhy foo,ain

s tugernel he

92 ,~

11 21~1 244 7 a

113 1: '3

15 Mutual

41 'C~', 6 32

i-IS,.. Com do.. ...........

. 967

167 726 Su I lal maO lb~hei~~ ",.a ....... .... .. . ............... ....'0;~'letni"'Ce Crob,;%'i'f'o

1'

2:3 062 181 E ."by .t...--on Ill, are ... ........... ... 3

4a= ... .... ............. . ... ....

. 167

(21) BuCk I.be nuide ..... ............ ... .. .... . ..... ............ . ..... 1

5

511, So fii~ =g Id 1%, S1 .

. d=,,11II, 02 2.5402 . . .... . .... ... W52

Mr

a

Fare c:e a.tte* .... ... .... .

. 233 ... ... ... .... ... ... .... .... ......... ... ..

Total .. .... ... ... . .. ... ... .... ... ... .... .... ... .... ... .... ... ... .... .... ... .... ... .... ... ..

100

10

89

23000A0

wh6area h, .h S Chuhhuar, integrated

All SW, .n 501g,X3) organdabome are notuicludei baysurs, Certain orgarazaams, au fahboombut thre and

Connerhare, or Saaaahathorni of Chu,choe. need not apply for reMphreor, of exemption un an they dMe a rulin

g

Table 21-Dispostal of exempt organizations application

s

501(c)

:

12) Cortiouvionii orgal roar

Soo ", d, art h r

Labor, agn-hure wlian~dmna

Buemei 'other and ne," I. .gu

whoi &i~

N

Fhafirun~ berefille, p??AO,!!

...........

JP CZTnorr7''. ! .::

15 Mutual analuenc

.

cornpanim,

S " "a " " "' 7~ b"6 l e Empbyw h,hon. fo,ma~on I I .. ......

....

PI ad In

,4

an, diiiimann.

larne fil

l

It. P-'~

Total .. .... .. .... ... .... ... ... .... ... ... .... ... ... ... .... .... ... ... .... .... ... ... ..

Appiliatiefilum, lot determinatio

n

Appir-ad Denied

.114.1a

2:74

9

500

2.129

.546

4' " 2

37a

171

34

146

14

to90

111824

30~

71615

43.007

Andahition wtharawn by favoyer and failure

M unryon howled inbirmiti

Odyfir, Tota

l

5,1 1 962,25 2

609 161 382

76 54

1

7

910201

65

842

7417409353

01

3a

02

987

INS

5 .,21q

3S3 05,

, "~"` M.236

58.625

95M

10776

1 7,93

5392 7 .1fiel

6068

111.

712

24,7163

19,

Id, 11 J u

9,453 2 .133

2887

2,746 2.490an

1130

269

41 '1

25

220 n4 1

433 i'

16 .3un 60'as,

61

Table 22-Internal revenue cOllectioniii, costs. emP]()vces and U-S- Populatio

n

Fl.-I.... Oloonfif

Calat

cand

.

Celleftlifians Collect

,

$IN

A-9 ralab,a

d

-ph.

National

O"ICS

,

(1) (2) (3) 1') (5)

S3377."M'

:71184

0

9 79

:97

195a 7

438 171 :984 166 16 70 1 :49176: 2

355,469,22e 0 T4 882

4,73

79,797,972 see 044 177,630 3

red

44873

30,735359 91,714,802,821 0 io 1 SO 67

1

196, 413,295,238

4

............ 4W:1so :S20

.401 086,398 044

507 .96

90 We

245

186,583t 5 3133 1019

0

45

!iOC JOS 25,S, . 1 4 S

:2~

&t9 692,131 112,260,257,115

047 189242 09,74

049 191,889 58503

597 861 :9~ 128s,,,, 03 7422,.38747,

4 79 961

:3 -S2 ne,= 588,

6667 :01 148,374,814,552 448

196- 6~ 6981

2'

0

0 5 198.712 74668

60

21 :7RINM75 l"' 046 200,70 6

71. 17

.19M19,5M597~48

0.40 202,677 S65

48

12

7 . 9

886 1111 712 096

4 1 141 2N

68 1971 7:.~:. 1 ,% a 6 . 955,31 :. ..........

. 981 7:

"e:

i27 1 1 207,OM 925,

ier i 62=14S 2

17.

237 :4.71:

.1 ou 208 801 g 21 ,J~e.j '30 11 So 04, 2 4 O`u` 0

1974 1 d

1 :2 83

1171 69

.312,894 661 26B .952 .253sW

0

1 of 67 97 as 3 1,:72, 77

,

:~i, :4,.6 : 3:,2

24

7S,:.22 0~

213.5591 .375 o2,, S 056 215.142 1,40B

-

1 :7.1,:5 78 1 3

'N

8 33M 1

.

7769:34 B16 73

0

tri) 7

: 9913 050 2,7,329 1

1979__

............... 9:36

2

2,116.166,2761 1~ 0, 04469 219033 , ~ .U2.7 S'j

460,412, 3 220.999

2 .OK 32

2,2BO W88:712.2 ; 516 7 '. 24

: 2~21 1 2~.27,

,gai, 2461.16

.1~371:273:

.&,

99

.41 2 0~231 ~2 1 Is

19.3...................

4626,M1 2I 632,240,505 .Sg5 042 232 .61

Se',..............

...............

. 96 ~52 8,1 ~ 627.246.792,58

1

3:2789 W75 490 047

9,2 '2:~7 el 63 9.2 ~

5 680.475.229,~53 2

2

048 237.

4

542 2A65 71

2

3:100 9 25 :952 050 , :113, 74 871 :~ on , :1 ~141 e 1-99, K .2. 1312,225 049 22,31

8 3.233 94

Fitild

(6) (7)

22 :12

W

4, 51 :132

-1"'

4 S, 22~1 , 909 107

9 9 S257

51 U72 . 0

5~6~8 3 .9'

2 48 137

M16',

I

59 ,

3~401 53,080

61059 3657 3. 56

839 o5i

,

57220

62.098 3881 58217

M W 3982 59.526

65=6 3,89,1 62.052

676:574 3,967M.607

06`1 3,862 62 M2

66683 4,103 6', !580

68:97 4,3!56 K614

685429 4,1~ .415

14a:17 4:

921 4 310

74,611

V 339 4,53, 77,808 U.2U 4 .732 79,532 '.3,:~74.1 4~~19 4 1~4

80,410

86.10 4.978 81,190

ag "S 5 B7~4.

4a

S, 50

N6

s~2 ~85 7 , 54:09 77.759

3571 79,2401

87635, 5.3271 82,3001

92 25,f 5:34~ S6,,d

95 Sea

5 6t Do.519

I This figure lophearts =ual IRS emblem, Coate from firibal War 1975 -1u,ye

Performed While the bloblating Co. flgur.S for faical yeaM prior to 1975 maym abrh~~l

"'imounion"'I ef receiyed fron, other agimatiffe for harycle, M alle, the=figulde in Column 3 - mol-Ofieamillaterm,l In- -nll are -.1 amb do

%t,p-O',',nh'2,rTSy-Sgm P-1101S iniad in 1972, 1973 and 1974 .

-1972 adjusted by 3,9W

-

P-11- -lutdod in

rage bearers, to ri the

"AT&F 74 thandifer-jul, 1972 AT&F holudeci 11 MIS 1956-71

.

Eleven avrearge be,,tions turbanned 10 OffWt the SaChathifyrn 1965

. Twenty frydrage Pood'One, tharalfarred 10 OffifiCe of the SoCuiterym 19M

POPUblon trfi~ I ad In

and to, Par Caere figur

.ft- In ra-el to agree wrh t a Came Bu_ ., adjUated data on Copulaboh .

Methodology

1. Count byes, , _ _ I *ay Sdjodad 1984 no Conform to offit. of Prefternal Management barrui,aws 19113 aVorage

Mail- Mallead aJw are Sdjult.d far Corimpardolifty.

Table 23-Costs incurred bv the Internal Revenue Service by activity

(in thousands of d .]1 .,s

)

Appropriation by -j,dy T-1 P---l Cerapa -i.n

syd samiltan,

i-widw. I-.

-Si

Otne,

INS

!"d ren"b"nothernhe

3.617,37

5

a Sa . latitio

...

l

let :: ... .... ... ... ... .... .... .. .... ... ... ... .

. 1",955098

Maim,

....t

96 85

7

a

.

Fir"Nal. 1

Total . !

.

Reauhhe . ... .... ... ... .... ... ... .... ... .... ...

C- .,e,.-. a

wari - boobu.

I,

. n

o

.......

......

Eartiminatfie" me in,"a

n

Unit

Exarhm~fi ;~*~ :.*',~ ::.--.~:: .. ... .... ... ... .... ... ... .... ... .... .. .... ... ...

AppSelfi, and IS, ... ..... . .. ... ........ . Employ. a

dian

.

Im

,

'mir!n cal'affifien, am MP'

,

Ta~ firahdr~ ... ... .... ... ... .... ... ... .... ... ..

COIIWI,n ..... ............ .

fiag

=an,

: ~:::::

finflaribunififiall eltifigodiona, hon, .. .... ... ... .... .. .... .... ... ... ... .

logs 1905 lees INS lose

3,8",gN

22,6 366 22:759 ISOSoffit-ofin "107'"s 3 U IoU (1 746.919 81 .368 l.M5,065

89,475 70,1% 67,351 26 22,124

828387 72' :5'7'

1401 23

4

3 619,12 25525 1

.229

20 afirs

1 .048 .469 1,247,"3 5911,1122 "5 3 88.459 457:7U aa

~

822 7 917:9135 ~13.771 595,992

2

267 2 21

225972 29 498 57.151 109,457 168,821 32,~l 220,o3i

11 1,133,137 :376,506

1-149 .924 243,359 251,247 14645 139,501 915114 1 oul, i67 263 '33~~1.1 1,,,Ol 27~.

X,, . ,a

39B Sig 0319 713:659 3

162:63 139 1U

3

B2,.2 18,26ul

1,0791,90 2 15F2

1 .103.055 It 824,1115 253,693 2n,670

E!3

:.,' 221 .- 172,121 4~23

119 7

1,411 4M.-

"

.6 3 409:484~

20

:0

e7:

.6704 '8212 1N .207 130MI 6e6G7 70,211 6 ml 56 .7off Mead 10g70 11 .95

1

16,423 24.9n 11 .782 12,261 4.", 12,66,

W, 2NIXKTFSVR_-2,e
-

62 1~ 7 ~!k '-- ~'VX2 I

.'N%

Table 24 .-Costs incurred by the Internal Revenue Service by office

(in thousands of dollars)

1,1-1 twenue off~. dWrilt .1 r.91o,

P

Too,1 .-"-, -PI", T.-I

A 7. .1 W.- R-.-. S.,,i. . ... .... ... .... ... ... .... .... ... .... .... ... ..... ... ..

N~bola Offee ... .......... ..... .... .. .......... .... ... - ........... . ..... -

Norh Atl- . ... - ......... ... ........... .. ................ ......... .

-Al.-. . ............... ............ ........... . .

S .,. ~ -.1 1 1 .... . ....... . .... : : : '

C-I ......... ....... .. ............ ........ .... .. ... ::: .. ........ .... ... . .

.0. .. . . . ...... ........ . ... ... . .... ........... ... q : ...... ..... ..

. . ...... . .......... ............. ............

rooor~o. .. ..... . .. ........

ins t, C-41 C-1 .... . ....... ..... .. .

. Cerro . ...... .. . ............ ....... ..... ...... ... .... ........ .

ot~ROF~iomlw tort _M) I "'Wirtg dl.rill d-1--

. -.1-1 ... .... ... .... ...

C. DWWW . ... .... .... ....

North AIMMJI ... ... .... ... ... .... .... ... ... .. . . .. ..

. .... .... ... .. .... .... ...

M~A .I..fl. . .... ... .... ... .... ... ... .... ... .... ... .... ... .... ... .... ... .... ... .. -

S~m. .. .... .... .. .... .... .. .... .... ... ... .... .... ... ... ... ... ... ... .... I... ... .... .... ...

A0 It ....... ........... - - .......... ............. ..... ........ ....

a . ........ ..

.. . . . ........ ............. ............ . ..

.... ............ .. ........... . ....... ........... .:::::

V

..... .... .......... . .. .............. .. ..

L

N.1' R ..-,,"

N- 0,16. ....... ..... ..... . ...... ...... ............ ...

So,,,-A or-t ......... ...

AtM- . S- ~=*'. C- ; ;

... .. .. .. ... ...

C .,rn., ... :- '*'*"* ........ ............ I.. ............. . .... .. .... .... .. ... . * .. .... ... . :7 .:

C , rd ..... . . .. ....... .............. ............ ............ ................ ... ..... ....

Dot' ." .. . ...... . ..... ...... . .. ............

Ir- . ......... ... ..... .. ............ ..

Lm- le . .

P=zI ...... ............... ......... . .. ...

C al ........... . ..........

C -1, Cente. ........... .............. ... ........ .. ..... -

MM.. .... ... ... .... .... .. .... ... .... ... .... ... .... .. .... .... .... .. .... .. ... ... ... ..... ... .. 7 .

It. ,,,

M,I.a,km ....

Fo-s D I-. . C-1 M- Rewon cent,woo -

Con,

(1) (2) (3) (4) (5)

3,866 .NS 2,759,10 " OD 384 "9 921 .598

686:~6 .653

2N

~N9 ":544 IN I,

462717 3M 119 7,736 67W 90 .153

31:11 is 27, 11 3 '~, 1!2221~1 1:111 11 :~112

5754

1

52

'3 s 7ss 7~ M

280.9n 222 ~S 8076 4 .263 45,9"

318682 257405 8477 4,46~ 48 n6

'21 !4'

~31 4 sl sl:7.4 4 2 .8 11,021 87 .322

S2,

S

2 ~4831 9,265 97,460

86 .376 W.936 1 824

U .674 56M9 1 0 6"

.

. 1 3" 2,151

35 :~17' 31~~156 ~ 21 1 :1,t3 1 .695

N '7 w 1 1' 121 21

SO 166 W6 M 123:7

.

295,959 71 .331 12J. 11,420 201,M1

9.967 7' 1 7 Aw

4. '450 W : 1 1 .211 79" 11 2B.320

43,315 9.299 3562 9 6 29,518

31 397 8 4M 1 079 1 , 919

IN

13 1

33 :780 9225 1 28,t 819 22 52

51 820

1

045,t 1 6,t5 3996 35.725

76,682 13,703 3594 1,U7 57.M8

2.6n,149 2,214,013 SO .M 42,N9 M6 .M2

"3I I 20 348,M 61950 1,12712~ 12I~47

~961 9,810 426 W5

'

: 26 4,971 253 55 W

48279 37 . 7 1 081 917 9,194

'1 392 41 974 868 647

7

I

21, " 5 Is, 33 :11 1'1 :~2 911 1 .010 35 4 :903

25

16 5 11

.6D7 21,400 681 200 3 W.316

6~2171 7~3 6110 1 2S .1 N .3m

N

~2 117 728

7,2155 5 .768 201 75 1,171

'

N a 21

74.956 K757 26 1,150 18,78,t

93,422 68, 55 205 1 :3 0 22,884

310, 61 26610" 6 .03 . 83 30,942

4386 3.3W 6m 54 3,273

24~6556 19,857 1 .729 725 2 N5

57~1 52,567 1 .219

427

3082

4

S

23 '7' 240 41.329 175 922 3 .114

20 4"

5S, . 1

27 4' :111 23.1M 902 619 2~~5

0

S

147 4651 It? 148 231

3,762 2,476 2 190 1 .072

2m

0 M6 0

41

79681 63.028 1B6 2 .(A

1~

. 827

414,230 US, 53 9 .M2 " 853 49, 62

WWS 43~735 1,56782 1 .168 6 97M

15

.378 13 665 6 2'6 0'

11 :3

41 2 758

2S .1'5 44:7S 928 M' 1,4~

10.608 9315 380

66975 2,553 2 23N ~ " .(n6

1 1 ~0102 9.763 4B9 255 596

%41 142 2 :133 911 "6 3, 15 1

24 W7 935 1

477 0 4

35 0

42

78.672 63,123 196 I'l - j&22

71 .505 59 .M7 '68 1,655

249, 23 214,2W I .N7 2,w 25,

%~ W02 913 323 2.99'2Z

37~41 33,MI 1,052 375 2,915

51 1 19

4'

S'S 5&` 2.3w 424 371 7

2S

.

470 a 5

M 3~023

16.323 14,140 7M 112 1 .313

9.162 8

3 3 0

.100 "D 60 5~

m 0 274 0 59

68 618 56,123 19 820 11,476

2",902 240,180

7

.193 3,US 2S."

M5 3422 229 49 195

7s 1 14 72 7' 1.1 67 4 ..1

14,1

36

12144 523 293 9 6

4288 3,74' '31 58 251

5300 4,112 26 49 274

22,755 20,285 615 233 1,622

9,721 8470 359 106 786

~ .100 30.005 1 11 1 2

26,811 23,690 27'

13,149 11 ~759 5N 1 41 71

438

1 17 21 4 29

370 0 W 0

12

70517 57052 246 1 .460

11,759

63

Table 24.-Continued

(in thousands of dollars)

i-M mwn- orlice, dooict or mg1oo

.. .... ... .

..

.... . .. ....... . . --. .. . .......... . ....

rt~ ~ ...... . .. . ... . .. . .......

. ........ . im

--.- 1 -.1 .1... ..........

. ... ........ . . . . ... . ..........

Hw- . . ... .. . . ... . . ... ...... ... .......

S.11 t,' C" .......... ....... .... ......... .. . ... ... ... .. . .......

. . ..... .... . . ... . i.

A-1 S-e C-11- ... ... . ..... ...... ......... . ... . . ... ....

0'- F-'. Crr,. . . ... . . . ... ... .. ...... ..... .... ....... ....

W.. ... ... .... ... .... .. .... .... ... ... ... .... .... .. .... .... .. .... ... .... ... .... ..

!Mrwago

P.ftrd .. ............ ....

sooIf . ~ ...... . ............ ........... .... .....

Ww- Rego-Ir,1-

Tolml 7-1 Equt'

.. .t O~r

(1) (2) (3) (4)

475,11S 405,290 11,20 7,025 SIA97

395 7 '1'

12 1

29 :55,t 2'

N 1

.3132 40'2 1.80

4,654) 3,858 405 40 N 7 ~s g:,2,. Is,. 4,5 1,ss s.9

75 a as M6 3465

53 41111 11 ; 4121 24:1 ..

2 124 ~ :41

2:

084

4 20

1

'78 US 1

.726

.0 354 14 41 ;

14.759 13 ~18 593 6, 68

73 a 67, 0 65

681 566 to 4 2

im ill go 758 352 1,418 15,640

9.,45 74.6W 386 IJ14 14,402

~.816 386.239 11,237 , 18 39 .622

10425 8565 N4

173 7,3

6211 5,457 324 131 n9 8.418 7,499 278 10 473

57.165 SO .W

21

: N9 930 3,542

M .152 73 .B74 814 1 .219 7,245

1754Z 15 .099 628 410 1426

1

2:402 10 U2 219 837

25

-

n 8M 7w 366 1~~21 49,

M

42 721 8 764

S

32, 289 28:777 1 . 3r4 560 1

. 67

5:38

32,821 28695 938 647

475 0 433 0 2 .54521 108

253 91,218 419 2,141 14,47 5

NW: R-WI-M IS ~IdWod 11 thS b.,,S bq.-

a % , "'5e r O-zn-~-e
64

Table 25-Personnel summary

Location add IYM

Sannd total . .... .... ... ... .... .... ... ... .... .... ... ... .... .... ... ... .... ... ... .... .... ... .. . . ........... ............ ............... ..... ......

Tenh-V

actereal Out.. .. .... ... ... .... .... ... ... .... .... ...

0"1 1 officasI .. ... ... .... .... ... ...

at, P,raceattint; oaarationa . ... ... .... ..:: ::: ... .... .... ... ... . . ... ... .... .... .... ... . . ~Ilastlah MO.. .... .. ...

Re'aChh,-.- .... ....... .. ... .............. ..... .. .. ... .... ... .... ... .... .... ... ... .... ... .... ... .... ... .... ... ... .... .... ... .

Th .T."----t.......

E.-thatio. .. .... .. ... .... ... .... ... .... ... .... ... .... ... .... ... ... R. h. .'.. ~... ............. ............... ....

To . ii .dhl- ~ .......... . ........ . . . ........... .... .... ......

'IM"P`*'W' ."" "W"i.. ... ... .... .... ... ... .... .... .. .... .... ... ... .. E D t

Apdasid. . ... .... .... ... ... .... ... .... ... .... ... .... ... .... ... .... ... ... .... ... ... .... .... ... ... .. T.. f-d .. .... ... .... ... ... .... .... ... ... .... .... .. .... .... .... .. .... .... .. .... .... ... ... .... ..

at cleas of Y:"

1985 "Re 94,an

02,792 116395 96 8 9 .705 1072,M

312 932:U i 92,6N 9 .579'A4 .076 4627

'4TO5.70 5,66

3

1

67,249 .3

N NO I,, 25,n3 3

:

.:2" 29: .79

15,412 15,57N 15,119 15,874

7386 7,247

7

a7 : 1

8026 8.3t!~ 7:375 515 4 .26 5,324 . 4.610 6,892 17

1, 712

1 1,60 1 701

2

W,i a alt 1,211 1663

1 G 2.815 am,

24,798 26,121) 24,433 13 27. 97

3 312

. 57 13,619 13M 14,507

3,409

7:372". 'Mna 7239

1

922 20, 1,914 2,260 1

~2511 .320 1~

618 Mil 594 1,026

2,232.220 2,212 2' .3aG

~O "052 1.05(1 "'at,

177 17a 177 178 1 .

003 979 1.0116

4, n4.122 4,394 4,270

2' :~1232'M2 .860 2,752

'2;' 1,53", 1's,

a

E.-W. direction .. .... ... .... ... .... ... .... ... ... .... .... .. .... ... ... .... .... ... .... ... ..

Ifteargesee . -1 care ... ... .... ... .... ... .... ... ... .... .... .. .... ... ...

Re in .. .... ... .... ... .... ... ... .... .... ... ... ... ... C.= . . .. .... .... ... .... ... .... ... ... .... .... .. .... ... ... .... .... ... .... ... ..

ccannall . . . .... ... .... ... ... .... .... ... ... .... .... .. .... .

Inapectio. . .... ... .... ... ... .... .... ... ... .... .... .. .... . .

Note: RarnWraments isawwouded in the abo,,o hgorinchudes Nab" CMpWer Cancer and the Data Carter.

Centralaed Sri— staffing absorbed by :ta chant funchond duong FY 1986

126 124 125 116

2 :1762:11i 2560 2550

'04

4 :w

a;3.6211 443

2,45a 2,382 952.485 2,479

072 9110

r

Table 26.-Chief Counsel cases receive

d

T. ca

. . Isees,

S-11 Other,

than ... .... ... ... .... ... .... .. .... .... ... ... 20'D25 ... .... ... ... .... ... ... ... .... .... ... ... 22 14

036

27:1

19 84 .. ... .... .... ... ... .... ... .... ... ... .... ... ... 12,263 670

, 11, . ..

. 587 U

1~4 :1U 25B

:~

T-1

Gthrithiel Rahchal

legal fifigratch.

-1ces.

W 739 3 UG 921

1~2

a 33 33 9M

:~111 367 N

491 472 4. Pi 23

48 78 5. 12

6

Accando ricabstics are net nurntaers, i.e.. astual mmIder of cases received phis or nnm tonstars and adjustments to prior years racepts

~)A65

Tabk 27-Chief Counsel receipt and disposal of case

s

Omelet, Tdae. .1

0.1 1 Ifta

Daclas",

Side. PO3

135 21, 218 128

I U 23 185

30n

121 46 101 66

79 3" 72 41

397 21'

26

29 29

21 24 34 11 "1 13'

06 2416622163 0

6

Dl.,-. litigation

-E;=PI'I0,ilearktation .

General lidglific.

woeq,hathel'.

31

';n..Y Act 'co- 6

'acy Act Pre.,. ...... . . . ... .. ...... ............ . 3

Total ... ... ... .... ... .... ... ... ... ... .... ... .... ... .... .... ... ... 91

.

R-Wed view909 "13' 3N 1 2 1. 7 2 1 .690 1.675

10 ~5

30 4h

a13

19 a31a2 23

0 341 145

781 51 12 11

11 2a - -

Total . ... .... ... .. ... .... ... . .. ... ... .... ... .... ... .... ... .. 112 174 183

.2

163

...

8,401 lo'N'

9 .M6 9,836

1m 108 124 137

360

2. 371

S"-'.'-US

Tu 'Sp'"~hni ... . ._

;h JM 4,473 .'t 2a,i 1 n 1,897

TFo ;egn dw.MONS nci-

:q 1,997 1.93" 1,910

2.02~

1 D' S-10's w

prornnnn,

nt,rc eq, .

3h 3"

............ 6,395 8.38"9.Dt4 5,765

"'

. FOIA & phnacy ra............................

A=--y op- . ............ ........ . - ......... .. "159

. 1 568 627 100

Total . all region . . .... .... ... ... ... .... . ... ... ... .... ... ... .21,09

1

National Mice:

AP.W. .. .. ....... - .. ..... . .... ... ...... 548

=ntrht~vaa

Total National Mice

cimh~ .- T .. ... ... .... _ ... .... .... ... ... .... 73 ;

Total: 11 regions kkationel Office ............. 2la3l

Total .... ... ... .... ... .... ... ... ... .. ... .... ... .... . 66

32,517 32,218-21,49

3

382 372 558

4N 410 1.41

.1 1 791970

33,419 33 .009 22,24

1

,anr.,,n,, 127 89

Tec" 65 63

.1 11-1

41 China, . .. . . .... 77

' 3

;77 85

-it

R"soch .g. .hne;.~~e

Total . .... ... .... .. .... ... .... ... ... .... .. . . .... .. .... .... . Set

w 314

63

40

44n

196

1446 29 7

34.0

47 so

92

107 169

5

19
66

COMMISSIONERS OF

INTERNAL REVENUE

Office of Commissioner of'] aternal

Revenue created by Act of Congress,

July 1, 1862

G

'OBOE

S. BOUTWELL

Massachusetts J F

uly 17,1862/March 4,1863

JOSEP11 J . LEWIS

Pennsylvania

March 18,1863/June 30,1865

WILLIAM ORTON

New York

July 1, 1865/Oct . 31, 1865

EDWARDA . ROLLINS

New Hampshire

Nov 1, 1865/March 10, 1869

COLUMBUS DELANO

Ohio

March 11, 1869/Oct. 31, 1870

ALFRED PLEASONTON

New York

Jan . 3,187]/Aug. 8,1871

JOHNW. DOUGLASS

Pennsylvania

Aug . 9,1871/May 14,1875

DANIEL D . PRATT

Indiana

May 15,1875/Juiy 31, 1876

GREEN

B. RAUM

Illinois

Aug . 2,1876/April 30,1883

WALTER EVANS

Kentucky

May 21, 1883/March 19, 1885

JOSEPH S . MILLER

West Virginia

March 20,1885/March 20,1889

JOHN W. MASON

West Virginia

March 21,1889/April 18,1893

JOSEPH S . MILLER

West Virginia

April 19,1893/Nox~ 26,1896 W. STJOHN FORMAN

Illinois

Nov 27,1896/Dec. 31,1897

NATHANB. SCOTT

West Virginia

Jan. 1, 1898/Feb. 28,1899

GEORGE W. WILSON

Ohio

March 1, 1899/Nov 27, 1900

JOHNW. YERKES

Kentucky

Dec. 20,1900/April 30,1907

JOHN G . CAPERS

South Carolin

a

June 5, 1907/Aug. 31, 1909

ROYAL

E . CABELL

Virginia

Sept. 1, 1909/April 27,1913

WILLIAM H . OSBORN

North Carolina

April 28,1913/Sept. 25 . 1917

DANIEL C . ROPER

South Carolina

Sept . 26,1917/March 11, 1920

WILLIAM M . WILLIAMS

Alabama

April 1, 1920/April 11, 1921

DAVIDH . BLAIR

North Carolina

May 27,1921/May 31, 1929

ROBERT H . LUCAS

Kentucky

June 1, 1929/Aug. 15,1930

GUYT. HELFVERING

Kansas

June 6, 1933/Oct. 8, 1943

ROBERTE. HANNEGAN

Missouri

Oct . 9, 1943/.Jan. 22, 1944

JOSEPH D . NUNAN . JR .

New York

March 1, 1944/June 30, 1947

GEORGE J. SCHOENEMAN

Rhode Island

July 1, 1947/July 31, 1951

JOHNB. DUNLAP

Texas

Aug . 1, 1951/Nov. 18, 1952 T. COLEMAN ANDREWS

Virginia

Feb . 4, 1953/Oct. 3 1, 1SP55

RUSSELL C. HARRINGTON

Rhode Island

Dec. 5, 1955/Sept. 30, 1958

DANA LATHAM

California

Nov. 5, 1958/Jan. 20,1961

MORTIMER Al . CAPLIN

Virginia

Feb . 7,1961/luly 10, 1964

SHELDON S . COHEN

Maryland

Jan . 25, 1965/June 22, 197.1

RANDOLPH W. THROWEk. Georgi a

April 1, 1969/.Iune 22, 1971

JOHNNIE

M . WALTERS

South Carolina

Aug. 6, 1971/April 30, 1973

DONALD C . ALEXANDER

Ohio

May 25,1973/Feb. 26, 1977

JEROME KURTZ

Pennsylvania

May 5, 197 7/Oet. 31, 1980

ROSCOE L . EGGER. JR. I nolian a

March 14, 1981/April 30, 1986

LAWRENCE B . GIBBS

Texas

Aug, 4, 1986/pr9sent

The following were Acting

Commissioners during periods when

there was no Commissioner holding

the office :

jOSEPH J. LEWIS of Pennsylvania

from March 5, to March 17, 1863

JOHN W DOUGLAS of Pennsylvania

from Nov 1, .1870, to Jan. 2, 1871

HENRYC . ROG ERS of Pennsvlvania

from May1 to May 10, 188j, and from

MayI to June 4, 1907

JOHN .J. KNOX of Minnesota

from MayII to May 20, 1883

ROBERr WILLIAMS, .IR . of Ohio

from Nov. IS to Dec. 19, 1900

MILLARD F WEST of Kentucky

from April 12 to May 26, 1921

HE MIRES of Washington

from Aug . 16 to Aug . 19, 1930

PRESSLY R. BALDRIDGEof Iowa

from May 16 to June 5, 1933

HAROLDN . GRAVES of Illinois

from Jan . 23 to Feb . 29, 1944

JOHN S . GRAHAM of North Carolina

from Nov. 19, 1952, to Jan . 19, 1953

JUSTIN F WINKLE of New York

from Jan . 20 to Feb . 3 , 1953 0. GORDON DELK of Virgini

a

from Nov. 1 to Dec . 4, 1955, and from

Oct. I to Nov. 4, 1958

CHARLES 1 . FOX of Utah

from Jan . 21 to Feb . 6, 1961

BERTRAND NJ . HARDING of Texas

from July 11, 1964, to Jan. 24, 1965

WILLIAM

H . SMITH of Virginia

from Jan . 21, to Aug. 5, 1971

HAROLD T. SWARTZ of Indiana

from June 23 to Aug. 5, 1971

RAYMONDF. fIARLESS of California

from MayI to May 25, 1973

WILLIAM

E. WILLIAMS of Illinois

from Feb . 27 to May 4, 1977, and from

Nov. 1, 1980, to March 13,1981

JAMES 1, OWENS of Alabam

a

from MayI to Aug . 3,1986

PRINCIPAL OFFICERS

OF THE INTERNAL

REVENUE SERN71CE

as of September 30, 1986

NATIONAL OFFIC

E

COMMISSIONER

Lawrence B . Gibbs

DEPUTYCOMMISSIONER

James1 . Owens

ASSISTANT TO THE

COMMISSIONER

RichardC. Stark

ASSN'TANT TO TI I E

COMMISSIONER

(Legislative Liaison)

Vacant

DIVISION DIRFCTOR

Legislative Analysis

GayleG . Morin

ASS187ANT TO THE,

COMMISSIONER

(Public Affairs)

Ellen Murphy (Acting)

TAXPAYER OMBUDSMAN

JackG . Petrie

ASSISTANT-TO THE

DEPUTY COMMISSIONER

Vacant

EXECUTIVE SECRETARY

GeorgeA . O'Hanlon

INSPECTION

ASSISTANT COMMISSIONER

John M . Rankin,Jr.

DEPUTYASSIS`FANT

COMMISSIONER

KennethA . Thompson

DIVISION DIRECTORS :

INTERNAL AUDIT

Erwin Sobin

INTERNAL SFCURITY C . Arnold Decke r

DATA PROCESSING

ASSOCIATE COMMISSIONER M . Eddie licirommus

TAX SYSTEM REDESIGN

ASSISTANT COMMISSIONER

Vacant

COMPUTrR SERVICES

ASSISTANT COMMISSIONER

Vacant

DEPUTY

ASSISTANT COMMISSIONER

DanielN. Capozzol i

DIVISION DIRECTORS :

HARDWARE

Richard NV. Marsh

COMPLIANCE PROCESSING

SYSTEMS

GeraldA. Rabe

PLANNING . BUDGETING

AND REVIEWS-IAFF

DonaldE. Curtis

TAX PROCESSING SYSTEMS

WalterA. Hutton

USER ASSHWANCE &

COMPUTER CAPACITY

MANAGEMENT OFFICE

BernardF Miller

RETURNS AND

INFORMATION PROCESSING

ASSISTANT COMMISSIONER

DominicE . Pecorella

DEPUTY

ASSISTANT COMMISSIONER

Henry H . Philcox

DIVISION DIREC'IX)RS :

NATIONAL COMPUTER CENTER

Martinsburg,WV

Stephen .1 . Stalcup

PROGRAM PLANNING

AND REVIEW SUAFF

OpheliaW Burton

RETURNS PROCESSING AND

ACCOUNTING

Fredric F Perdue

S7ATISTICS OF INCOME

FrederickJ. Scheuren

TAXPAYER SERVICE

NVaherM. Alt

OPERATIONS

ASSOCIATE COMM ISSIONER

PhilipE. Coates ; .* 67
6

COLLECTION

ASSISTANT COMMISSMONER

William M . Wauben

DEPUTY

ASSISTANT COMMISSIONER

Paul M. Harrington

CRIMINAL INVESTIGATION

ASSISTANT COMMISSIONER

RichardC. Wassenaar

DEPUTY

ASSISTANT COMMISSIONER

AnthonyV Langone

EXAMINATION

ASSISTANT COMMISSIONER

Frederic I! Williams

DEPUTY

ASSISTANT COMMISSIONER

RalphE Shilling

EMPLOYEE PLANS AND

EXEMP'T ORGANIZATION

ASSISTANT COMMISSIONER

Robert 1 . Brauer

DEPUTY

ASSISTANT COMMISSIONER

RobertE . Withers

DIVISION DIRECTORS:

EMPLOYEE PLANS

TECHNICAL AND ACTUARIAL

Martin 1 . Slate

EXEMPT ORGANIZATIONS

TECHNICAL'

EdwardD . Coleman

INTERNATIONAL

ASSISTANT COMMISSIONER

PercyR Woodard

DEPUTY

ASSISTANT COMMISSIONER

Michael J . Kelly

POLICY AND MANAGEM ENT

ASSOCIATE COMMISSIONER

Vacant

HUMAN RESOURCES

MANAGEMENT & SUPPOR

T

ASSISTANT COMMISSIONER

Michael P. Dolan

DEPUTY

ASSISTANT COMMISSIONER

Orion L . Birdsall, Jr.

DIVISION DIRECTORS :

DIRECTOR OF PRACTICE

LeslieS . Shapiro

CONTRACTS AND ACQUISITIONS

Vacant

FACILITIES AND INFORMATION

MANAGEMEN'r SUPPORT

John T. Blank

I IUMAN RESOURCES

RobertJ. Agresm (Acting)

NATIONAL OFFICE

RESOURCES MANAGEMENT

Suellen P. Hamby

PLANNING, FINANCE, AND

RESEARC

H

ASSISTANT COMMISSIONER

John L. Wedick,Jr

DEPUTY

ASSISTANT COMMISSIONER

GuerryG . Notte

DIVISION DIRFCTORS :

FINANC

E

StephenE . Taylor

PLANNING

AlanA. Beek

RESEARCH

Frank M . Malanga

DIVISION DIRECTORS :

DATA CENTER

Detroit, Michiga

n

Jack L. Schroeder (Acting)

RETURNS & INFORMATION

PROCESSING

TAX FORMS

AND PUBLICATIONS

Edmund1 . Goldwag

REGIONAL AND DISTRICT

OFFICERS

CENTRAL REGION

REGIONAL COMMISSIONER

JamesD . Hallman

ASSISTANT REGIONAL

COMMISSIONERS :

COLLECTION

Donovan H . Williams

CRIMINAL INVES71GATION

Larry R. Hyatt

EXAMINATION

Donald L . Houck

RESOURCES MANAGEMENT

Jon R. Swan

DATA PROCESSING

Charles F. Jones

DISTRICT DIRECTORS :

CINCINNATI, OH

JamesJ . Ryan

CLEVELAND . OH

JackR Chivatero

DETROIT. MI

John0. Humme l

INDIANAPOLIS . IN

William M .Jacobs

LOUISVILLE, KY

Raymond L. Rizzo

PARKERSBURG, WV

Ronald W. Kirby

DIRECTOR,

CINCINNATI SERVICE CEINTER

PatrickJ . Bottle

REGIONAL INSPECTOR

JohnE . McManus

MID-ATLANTIC REGION

REGIONAL COMMISSIONER

MichaelJ. Murphy

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

LeroyC . Gay

CRIMINAL INVESTIGATION

ThomasA. Wise

EXAMINATION

Regina M . Deanehan

RESOURCES MANAGEMENT

Joseph F. Kamp

DATA PROCESSING

DonaldN . Spagnuolo

DISTRICT DIRECTORS :

BALTIMORE . MD

Teddy R . Kern

NEWARK, NJ

CorneliusJ. Coleman

PHILADELPHIA . PA

CharlesE . Ruddy

PITTSBURGH . PA

Vacant

RICHMOND, NIA

Gerald R . Esposito

WILMINGTON. DE

Clare Shy Winter

DIRECTOR, 1111ILADELPHIA

SERVICE CENTER

Joseph H . Cloonan

REGIONAL INSPECTOR

BenjaminJ. Redmond

MIDWEST REGION

REGIONAL COMMISSIONER

Roger L. Plate

ASSISTANT

REGIONAL COMMISSIONERS :

COLLECTION

Allen

G . Woodhouse

CRIMINAL INVESTIGATION

Warren

E . Harrison

EXAMINATION

Leon Moore

RESOURCES MANAGEMENT

JackE. Shank

DATA PROCESSING

John T Ader

DISTRICT DIRECTORS:

ABERDEEN . SD

David II. Reizes

CHICAGO. I L J. Robert Starkey

DES MOINES, [A

John Edwards

FARGO, ND

WoodrowD. Malone

HELENA . MT

JohnC. Wendorff

MILWAUKEE, WI

Lawrence M . Phillips

OMAHA, NE

MitchellE . Premis

SPRINGFIELD, IL

IraS. Loeb

ST. LOUIS, MO

RobertA. LeBaube

ST. PAUL . MN

C. Dudley Switzer

DIRECTOR . KANSAS CITY

SERVICE CENTER

Everett Leary

REGIONAL INSPECTOR

Joseph F. Jeeb

NORTH ATLANTIC REGION

REGIONAL COMMISSIONER

Charles II . Brennan

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

Eugene P. Pfeiffer (Acting)

CRIMINAL INVESTIGATION

BruceV Milburn

EXAMINATION

Marshall

V Washburn (Acting)

RESOURCES MANAGEMENT

JohnJ . Dunn

e

DATA PROCESSING

Francine Crowley

DISTRICT DIRECTORS :

ALBANTY, NTY

EdwinA. Kelleher

AUGUSTA. ME

JamesE . Daly, Jr.

BROOKLYN, NY

John J .Jennings

BUFFALO. NY

Gary H . Matthews

BURLINGTON, VT

.Joyce Weitz

HARI'FORD, CT

JamesE . Quinn

BOSTON. MA

John D .Johnson

MANHATTAN. NY

Pete J. Medina

PORTSMOUTH . NII

DonaldD. Mitgang

PROVIDFNCE. RI

MalcolmA . Licbermann

DIRECTOR . BROOKHAVEN

SERVICE CENTER

BobbyG . Hughes

DIRECTOR . AND~OVER SERVICE

CENTER

Thomas M . Quinn

REGIONALINSPECTOR

Joseph F. Reinhold

i,
SOUTHEAS'r REGION

REGIONAL COMMISSIONER

ThomasA . Cardoza

ASSISTANT

REGIONAL COMMISSIONERS :

COLLECTIO

N

Conrad L. Clapper

CRIMINAL INVESTIGATION

Joseph T Pagarni

EXAMINATION

DonaldE . Bergherm

RESOURCES MANAGEMENT

Lee R . Monk

s

DATA PROCESSING

HenryE. Lecch,Jr.

DISTRICT DIRECTORS :

COLUMBIA. SC

Donald L. Brcihan

ATLANTA,GA

PaulD. Williams

BIPMINCHAM . AL

Philip .J. Sullivan

GREENSBORO.NC

JohnE. Burke

JACKSON . NIS

Tully Miller

JACKSONVILLE, FL

Vacant

LITTLE ROCK, AR

William F Barlow

NASHVILLE, TN

Alvin H . Kolak

NEW ORLEANS, LA

DavidG. Blattner

DIRECTOR . ATLANTA SERVICE CENTER

Sylvia IT Wren

DIRECTOR. MEMPHIS SERVICE

CENTER

Raymond P. Keenan

REGIONAL INSPECTOR

BillyG . Morrison

FT. LAUDERDALE

Merlin W Ileye

SOUTHWEST REGION

REGIONAL COMMISSIONER

RichardC. Voskuil

ASSISTANT

REGIONAL COMMISSIONERS :

COLLECTIO

N

Gerald F Swanson

CRIMINAL INvEsrIGATION

GlennE. Shepard

EXAMINATION

James R. Kopidlansky

RESOURCES MANAGEMENT

JamesA. Lindsey

DATA PROCESSING

CharlesJ. Peoples

DISTRICT DIRECTORS :

ALBUQUERQUE, NM

Francis L. Browitt

AUSTIN,TX

Gary0. Booth

CHEYENNE, WY

Vacant

DALLAS.TX

Glenn Cagle

DENVER,CO

Gerald L . Mihibachler

HOUSTON . TX

ArturoA. Jacobs

OKLAHOMA CITY. OR

KennethJ. Sawyer

PHOENIX, AZ

PrescottA . Berry

SALT LAKE CITY, UT

Carol M . Fay

WICHITA, KS

Clarence M . King, Jr

DIRECTOR ,

AUSTIN SERVICE CENTER

LarryG . Westfall

DIRECTOR ,

OGDEN SERVICE CENTER

RobertE. Wenze l

REGIONAL INSPECTOR E . Derle Rudd

WESTERN REGION

REGIONAL COMMISSIONER

Thomas P. Coleman

ASSISTANT REGIONAL

COMMISSIONERS:

COLLECTION

James

D . Helm

CRIMINAL INVESTIGATION

Darrell

G . Smith

EXAMINATION

RichardS. Wintrode

RESOURCES MANAGEMENT

Charles W Gilbert

DATA PROCESSING

Robert .l. Kensinger, Jr.

DISTRICT DIRECTORS :

ANCHORAGE, AK

CalvinE. Esselstrom

BOISE, ID

Richard R. Orosco

HONOLULU. HI

Harold M . Brownii ng

LAGUNA NIGUEL ' CA

Michael

J. Quinn

LOS ANGELES . CA

FrederickC. Nielsen

PORTLAND, OR

Carolyn K . Leonard

LAS VEGAS .NV

Jesse

A . Cota

SACRAMENTO, CA

Raymond

A . Spillman

SAN FRANCISCO. CA

FrancisS . Micel i

SAN JOSE, CA

Elmer W Kletke

SEATTLE, WA

Robert

E. Mirsberger

DIRECTOR.

FRESNO SERVICE CENTER

TheronC . Polivka

REGIONAL INSPECTOR

Vacant

CHIEF COUNSEL FOR

THEINTERNAL

REVENUE SERVIC

E

WALTER H . SMITH/1866

WILLIAM MCMICHAEL/1871

CHARLES CIIESLEY/1971

THOMAS J. SMITH/1888

ALPHONSO HART/1890

ROBERT T HOUGH/1893

GEORGE At . THONIAS/1897

ALBERT W. WISHARD/1901 A.B. HAYES/1903

FLETCHER MADDOX/1908

ELLIS GJOHNSON/1913

AA . BALLANTINE/1918 D.M . KELLEHER/1919

ROBERTN. MILLEW/1919

WAYNE JOHNSON/] 920

CARL

A . MAPES/1920

NELSON

T HARTSON/1923

ALEXANDER W GREGG/1925

CLARENCEM . CHAREST/1927

E. BARRETr PRETTYMAN/1933

ROBERT 11 . JACKSON/1934

MORRISON SHAFORTH/1936

JOHNP. WENCHEL/1937

CHARLES OLIPIIANT/1947

CHARLES W DAVIS/1952

DANIEL A . TAYL611/1953

JOHN POTTS BARNES/19S5

NELSONF. ROSE/1957

ARCH M. CANTRALL/1958

HART 11 . SPIEGEL/1959

CRANE C . HAUSER/1961

SHELDON S . COHEN/1964

MITCHELL ROGOVIN/1965

LESTER R. URETZ/196

6

K. MARTIN WORTHY/1969

LEEH . HENKEL,JR./1972

MEADE WHITAKER/1973

S`rUARrE. SIEGEL/1977

N . JEROLD COHEN/1979

KENNETHW GIDEON/1981

FRED T. GOLDBERG, JR./1984

WILLIAM F NELSON/1986

The following are Acting Chief

Counsel during periods when there

was no Chief Counsel holding the

office :

.JOHN W BURRUS

from March 2, 1936, to Nov~ 30, 1936

MASONB . LEMING

from Dec. 6, 1951, to May 15, 1952

KENNETHIK GEMMILL

from June 11, 1953, to Nov. 8, 1953

RUDYR I I ERTZOG

from Dec. 1, 1954, to May 8, 1955,

from Jan . 20, 1961, to Aug . 16, 1961,

and from Sept . 1, 1963, to Jan. 5,

1964

HERMAN I REILIN

G

from Jan . 19, 1957, to March 13, 1957,

and from Aug . 31, 1959, to Sept . 20,

1959

LESTER R . URETZ

from April 1, 1966, to April 11, 1966

RICHARD

M . HAHN

from Jan. 20, 1969, to .lune 25, 1969

LEEH . HENKEL, JR.

from Jan. 16, 1972, to June 11, 1972

LAWRENCE B. GIBBS

from April 17, 1973, to Oct. 19, 1973

71

CHARLES L SAUNDERS,JR .

from Jan . 20, 1977, to April 15, 197

7

LEON G . WIGRIZER

from April 16, 1977, to June 23, 1977

LES7ERSrEIN

from June1 . 1979, to Nm~ 16, 1979

JEROME D . SEBASTIAN

from .lan . 21,1981, to Feb . 2,1981,

and from March 30, 1981 to Aug. 14,

1981

EMORYL . LANGDON

from Feb . 3, 1981, to March 29, 1981

.JOEL GFR13ER

from May 28, 1983, to March 17, 1984

V JEAN OWENS

from March 14,1986 to .luly 27,198

6

NOTE:

From 1866 to 1926, the chief legal

officer for the Internal Revenue

Service was known as the Solicitor.

For the next eight years, 1926 to

1934, he had the title of General

Counsel for the Bureau of Internal

Revenue . Since 1934 he has operated

under the title of Chief Counsel .

Y" '~4
6

-4~~ V 43...

PRINCIPAL OFFICERS

OF THE IRS OFFICE

OF CHIEF COUNSEL

as of Sept. 30, 1986

NATIONAL OFFIC E

CHIEFCOUNSEL

William M . Nelson

DEPUTY CHIEF COUNSEL

VJean Owens

SPECIAL ASSISTANT

TO THE CHIEF COUNSEL

James D . Bridgernan

ASSISTANT TIC) THE

DEPUTY CHIEF COUNSEL

Ronald A. Glaser

DIVISION DIRECTORS :

APPEALS

Howard T Martin

OPEPATIONS

Richard .). Mihelcie

ASSOCIATE CHIEF COUNSEL

(LITIGATION)

James J. Keightley

DEPUTY ASSOCIATE CHIEF COUNSEL

Donald T Roce n

SPECIAL LITIGATION COUNSEL

Stephen M . Miller

SPECIAL APPELLATE COUNSEL

Daniel E Folzenlogen

SPECIAL ASSISTANT TO

THE ASSOCIATE CHIEF

COUNSEL (LITIGATION)

Martin Kay e

LITIGATION DIVISION DIRECTORS:

CRIMINAL TAX

Vacant

DISCLOSURE LITIGATION

Peter V Filpi

GENERAL LEGAL SERVICES

William F. Long, Jr.

GENERAL LITIGATION

Arnold E . Kaufman

TAX LITIGATION

Robert P. Ruwe

ASSOCIATE CHIEF COUNSEL

(TECHNICAL )

Peter K. Scott

DEPUTY

ASSOCIATE CHIEF COUNSEL

Marlene Gross

PRINCIPAL TECHNICAL ADVISOR

Michael S . Novey

SENIOR TECHNICAL ADVISOR

David E . Dickinson

TFCHNICAL ADVISORS

Philip Bennet

Vacant

SENIOR STAFF ASSISTANT

Janet Dearborn

STAFFASS M,ANT

Robert O'Har a

TECHNICAL DIVISION DIRECTORS:

CORPORATION TAX

Vacant

EMPLOYEE PLANS AND

EXEMPT ORGANIZATIONS

James J. McGovern

INDIVIDUAL TAX

Mario E . Lombardo

INTERPRETATIVE

James F Malloy

LEGISLATION AND REGULATIONS

Donald 6. Osteen

REGIONAL AND DISTRICT

OFFICERS

CENTRAL REGION

REGIONAL COUNSEL

Clarence E . Barnes, Jr.

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Charles M . Layton

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Robert M . Venable

.

DEPUTYRECIONAL COUNSEL

(TAX LITIGATION)

Mary Helen Weber

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

John A. Freema n

REGIONAL DIRECTOR OF APPEALS

Thomas I Yate s

DISTRICT COUNSEL :

CINCINNATI, OH

Richard E. Trogolo

CLEVELAND, Oil

Buckley D. Sowards

DETROIT. MI

Charles S . Stroad

INDIANAPOLIS. IN

Ross E. Springer

LOUISVILLE. KY

Ferdinand J. Lx)Lz, I H

MID-ATLANTIC REGION

REGIONAL COUNSEL

David E. Gaston

DEPUTY PEGIONAL COUNSEL

(CRIMINAL TAX )

Richard A. Francis, Jr.

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Charles ET Carrol l

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

John Kissane

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

David .l . Markman

REGIONAL DIRECTOR OF APPEALS

Nelson A. Brooke

DISTRICT COUNSEL:

BALTIMORE. MD

Herbert A. Seidman

NEWARK, NJ

Matthew Magnone

PHILADELPHIA . PA

H . Stephen Kesselman

PITTSBURGH, PA

Donald W Howser

RICHMOND, VA

Marion B. Morton

WASHINGTON, DC

Melvin E. Lefkowitz

MIDWEST REGION

REGIONAL COUNSEL

Denis .l. Conlo n

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX )

Carleton E . Knechte l

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

William J. York

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Harmon B. Dow

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Jeffrey J . Sieburg

REGIONAL DIRECTOR OF APPEALS

Kevin P. Morgan

Qm_~iNi :-,. 7 3

DISTRICT COUNSEL:

CHICAGO. IL

Vacant

DES MOINES. IA

Vacant

HELENA . MT

Thomas C . Morrison

KANSAS CITY, MO

James T. Finlen, Jr.

MILWAUKEE . WI

Nelson E. Shafer

OMAHA . NE

Ronald M. Frykberg

SPRINGFIELD, IL

Jeff . R Ehrlich

ST. LOUIS, MO

Vacant

ST. PAUL . MN

Robert F. Cunningham

NORTH-ATLANTIC REGION

REGIONAL COUNSEL

Agatha L . Versanger

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX )

Barry J . Finkelstein

DEPUTYREGIONAL COUNSEL

(GENERAL LITIGATION)

Myron Levine

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION )

Jay S. Hamelburg

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Robert F Hermann

REGIONAL DIRECTOR OF APPEALS

Eugene D. Alexande r

DISTRICT COUNSEL :

ALBANY, N Y

Gerald A . Thorpe

BOSTON. MA

Robert B. Dugan

BROOKLYN. NY

Summer L. Lipsky

BUFFALO, NY

John E . Whit e

HARTFORD . CT

Powell W Holly, Jr.

MANHATTAN, NY

Joseph F Maselli

SOUTIIEA';rr REGION

REGIONAL COUNSEL

Jack D . Yarbrough

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX )

Jack Morton

DEPUTYREGIONAL COUNSEL

(GENERAL LITIGATION)

Ronald E Campbell

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Ray L. Allison

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Harry G . Maso n

REGIONAL DIRECTOR OF APPEALS

Robert B . Douthitt

DISTRICT COUNSEL:

ATLANTA, CA

Dean R . Morley, III

BIRMINGHAM . AL

John B . Harper

GREENSBORO.NC

Alan 1 . Weinburg

JACKSONVILLE, FL

Ray S . Fischbeck

MIAMI, FL .

John T Lyons

NASHVILLE, TN

Richard J. Neubauer

NEW ORLEANS, LA

James E. Keeton,Jr.

SOUTHWEST REGION

REGIONAL COUNSEL

David L. Jordan

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX )

Val J. Albrigh t

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Charles L . MeReynolds,Jr.

DEPUTYRFGIONAL COUNSEL

(TAX LITIGATION )

Mark L. Puryea r

ASSISTANT REGIONAL COUNSEL

(GENERAL LECAL SERVICES)

Gary A . Anderso n

REGIONAL DIRECTOR OF APPEALS

Claude C. Rogers Jr.

DISTRICT COUNSEL :

AUSTIN. TX

Lewis J. Hubbard

DALLAS,TX

Kenneth A. Little

DENVER . CO

William A . Goss

HOUSTON . TX

Harold Friedma n

OKLAHOMA CITY. O K

Michael J. O'Brie n

PHOENIX. AZ

Roger Rhode s

SALT LAKE CITY. UT

Marion K. Mortense n

WESTERN REGION

REGIONAL COUNSEL

Benjamin C . Sanchez

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

William K . Shipley

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Vacan t

DEPUTYREGIONAL COUNSEL

(TAX LITIGATION )

Barbara Leonard

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Robert J. Wilso n

RFGIONAL DIRECTOR OF APPEALS

Donato Cantalupo

DISTRICT COUNSEL :

ANCHORAGE . AK

James A . Nelson

BOISE. 11)

Wayne R . Appleman

HONOLULU. HI

William A. Sims

LAGUNA NIGUEL. CA

DorotW W Westover

,LOS ANGELES. CA

.Joseph 0. Creaves

PORTLAND . OR

Michael W Bentley

RENO, N V

S. Clay Freed

SACRAMENTO, CA

Steven J. Mopsick

SAN DIEGO, CA

Donald 'A' Wol f

SAN FRANCISCO . CA

J . Richard Murphy

SAN JOSE, CA

Lawrence G. Lilly

SEATTLE, WA

Richard J. Shipley

0
74

IRS ORGANIZATION CHART

Nig,onal

Office

Al .i .- ItlailDepartment of the Treasury

Assistants to the

Commissioner ant,

Deputy Commissioner'

Associate Commissioner

A=E--t..

c =21117

0=17--n

0 .-E .aAllutllt C-11-1.11

0 -1F,Md0--

0-.E A-

-T. -

E-iom M.,

-- Av. .1 E.pi,,M MAnA E-ot

Dil-I

I

Commissioner

Deputy Commissioner

L-1 . . . . .. .. . . . .

Associate Commissioner

(Poicy & Manage,ent)

A ... . C

-u~

:D-1

c.-,

S.- C.... ..

an t

D--r

Assistant Commissioner

Associate Commissioner

(Data P-ng)

D-A.-

CAD mu'lol- Off- -C-oi~ Pr-.,

A-1 C . . . .. . i- (R-rr, -1-t-

-P

r,-~ no..

R-rn, Pr-" A-.~

T

. ~~icl Z

A.

I-s,u- fi-AQr )

oft.01J.

0 --plenlt01k,l 0 K-lag, -s"-

Oft,il of E.- FA, St.-

Cr- T. Ga- ,u g 7

T..

rmt-Iii

Chief Counsel

Deputy Chief Counse l

Associat Chief Counsel

(T.r..1)a

-ErrNo-,RAmsME .mpj

Associate Chief Counsel

(Lagatm)

C-1 T. ~

- -.,u "~-

LA,iAt-11

A-.

0-- D,

Associate Chief Counsel

intemabonal)

Iu,alill D AqAu.

'I- Al- Lla-1-

T.-O,audura, Ea,ui A -DaArnC- __aidea" . A=M-'*.

7 5

IRS REGIONS, CHIEF COUNSEL

DISTRICTS AND REGIONAL AND

SERVICE CENTERS; DISTRIzCT OFFICES

is I

co SOUTHWEST REGION

A.

REGIO SOUTHWES N T

N.

0A T.

A .-

jj~:~

--` Z'- N -.1

11

WESTERN REGION

MIDWEST REGION

CENTRAL

REGIO N

NORTH . TLANTI C

REGION

MIDATLANTI C

REGION

SOUTHEAST

REGIO N

Fl . L...I .A.

C111

N...
76

INDEX

A

Abusive Tax Shelters 18, 35

Academic Internships and

Externships 34

Administrative Appeals 31

Administrative Functions ,

Review of 24

Automated Underreporter 24

Appeals Workload 58

Automated Collection System 20

Automated Examination System 1 7

B

Bank Secrecy Act 19

C

Case Management 3 2

Cases, Summary Disposition of 65

Cash Management 2 8

Chief Counsel 7 1

Chief Counsel, Acting 71

Chief Counsel, Office of 30

Collection 2 0

Collection Activity, Results of 38-44

Collection by Sources, Regions

Districts, States and Other Ar~as 38

Commissioners 6 6

Commissioners, Acting 67

Commitment to Quality Service 29

Computer Assisted Audit Program 17

Computer Services 2 5

Continuing Professional Education 33

Contributions to Reduce the Public

Debt 1 1

Coordinated Examination 18

Criminal Investigation 1 9

D

Director of Practice 28

Disaster Assistance 14

Drug Enforcement Task Forces,

Organized Crime 19

E

Earned Income Credit 9

Electronic Filing 9

Employee Plans 22, 34

Employees, Number of 64

Engineering Program 1 7

EP/EO, Requests for Tax Rulings and

Technical Advice 59

Equal Employment Opportunity 29

ERISA, Determination Letters

Issued on 5 9

Examination Results 16, 50-56

Exempt Organizations 2 2

Exempt Organizations, Active Entities

on Master File 6 0

Exempt Organizations, Disposal of

Applicatio ns 6 0

Exempt Organizations, Returns

Examined by Type 59

F

Foreign Operations,

see International 20

Forms and Publications 1 5

G

General Legal Services 3(,

Illegal Tax Protesters 1 9

Industry Specialization Program 34

Information Returns Program 17

Inspection 2 5

Integrity Program 27

Internal Audit 26

Internal Security 26

International 20

International Issues 3 0

L

Laser Technology 23

Legislative Affai rs 28

Litigation 34

Litigation Initiatives 36

M

Management Initiatives 32

Map; IRS 7 5

Master File 9

0

Office of Chief Council, The 30

Operating Costs 61,62

Organization Chart (IRS) 74

Organized Crime Drug Enforcement

Task Forces 19

P

Payroll Improvement 24

Penalties and Interest 11

Penalties (Civil) Assesse d

and Abated 57

Publications, Forms and 15

Presidential Election

Campaign Fund 11

Private Letter Rulings and Technical

Advice Requests 3 1

Principal Officers, Chief Counsel 72

Principal Officers, IRS 6 7

Problem Resolution Program 15

Productivity Improvement 27, i

Quality Service, Commitment to 29

Questionable Refund Program 1 9

R

Recruitment, Training and 24

Refunds 8

Regulations 34

Research 2 5

Returns Examined 50-56

Returns Filed 48

Returns Preparer Program 17

Returns Received 8

Revenue Rulings and Revenue

Procedures 3 1

Review of Administrative

Functions 2 4

S

Service Center Collection Branch 20

Space Management, 2 4

Special Trial Attorneys 34

Statistical Sampling 17

Statistical Tables 37

Statistics of Income 2 8

Strategic Management System 2 4

T

Tax Gap and Compliance, The 25

Tax Protesters, Illegal 2 0

Tax Reform Le islation 30

Tax Refund OfAet Program 11

Tax Receipts 8

Tax Shelters, Abusive 19, 35

Tax System Redesign 23

Taxpayer Education 14

Taxpayer Information 15

Technical Advice Requests, Private

Letter Rulings and 31

Telephone Assistance 14

Training and Recruitment 24

Trial Attorneys, Special 34

W

Walk-In Service 14

Workload Priority and Selection

System 2 0

Write, Call or Walk In 14

2.