Annual Report of the 

Commissioner of Internal Revenue 

for the Fiscal Year Ended June 30,1953 

UNITED STATES GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1954 



Report 

on 

Operations 
INTERNAL REVENUE COLLECTIONS 

Collections of internal revenue during the fiscal year ended June 30, 

1953, totaled $69.7 billion. This amount, which is the greatest ever 

collected in any fiscal year, exceeds last year's record high by $4.7 

billion, or 7.2 percent. 

The collections results cover all payments actually received during 

the period specified, including taxes, penalties, interest, costs, court 

fines,judgments, offers in compromise, proceeds from seizures, etc. 

In addition to remittances made by cash, check, or money order, the 

amounts include payments made in the form of Treasury savings 

notes, Treasury tax anticipation bills, Federal Reserve Bank receipts 

issued in exchange for tax anticipation bills, and Federal depositary 

receipts. 

Employers whose total monthly liability for income tax withheld 

and old-age insurance taxes exceeds $100 are required to make monthly 

deposits of such taxes in the Federal Reserve Banks or certain authorized commercial banks. As evidence of such deposits the employers 

receive depositary receipts which they later forward with their quarterly tax returns in payment of the taxes reported thereon. Amounts 

represented by the depositary receipts are not reported as collections 

until the returns are filed, although the money is actually received by 

Government depositaries and reported as tax receipts m the Daily 

Treasury Statement at an earlier date. This is the principal reason 

for the difference between the internal revenue receipts of $69,931,000,-

000 shown in the Daily Treasury Statement and the internal revenue 

collections total of $69,687,000,000 shown herein for the fiscal year 

1953. 

Differences between the collections figures shown herein and the 

tax receipts shown in the Daily Treasury Statement for the same period are also due to the fact that several days may elapse between the 

receipt of a tax payment in the Internal Revenue district office and the 

inclusion of such payment in the Government depositary reports on 

which the Daily Statement is based. 

Most of the $4.7 billion increase in collections was realized in the 

collections of withheld income and employment taxes, and results 

from higher levels of wage and salary payments during 1953. There 

was also a substantial increase in miscellaneous internal revenue, reflecting the full-year effects of the higher rates of some of the excise 

taxes, as provided by the Revenue Act of 1951. 

8 
4 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 5 

The accompanying table shows the internal revenue collections by 

major groups of taxes for the fiscal years 1952 and 1953. 

General sources 

rises year Increase or 

decrease —) 

1952 1953 Amount Percent 

Income and profits taxes: 

Corporation $21,466,910,019 821,594, 515, 206 $127,605,187 0.6 

Individuate , 

Withheld by employers 17,929,096,578 21, 132, 274,603 3, 203, 228,025 17.9 

Other 11,345,060,075 11,403, 942, 106 58,882, 031 0.5 

Total individual income taxes 29, 274, 106,653 32, 536, 216, 709 3,262, 110, 056 11.1 

Total income and profits taxes 50, 741,016,672 54,130, 731, 915 8,389, 715, 293 6.7 

Employment taxes: 

Old-age insurance 3,584,025, 406 3,815, 251, 575 232,226,169 6.5 

Unemployment insurance 259,616, 431 273, 181, 565 13,585,133 5.2 

Carriers taxes—old-age benefits 620,621, 752 628, 969,408 8,347,656 1.3 

Total employment taxes 4,984, 263, 589 9,718, 402, 547 254, 138, 958 5.7 

Miscellaneous Internal revenue: 

Estate tax 750,590, 517 784, 590,189 33,999,872 4. 5 

Gift tax 82, 556,471 106,894,247 24,137,776 29.2 

Alcohol taxes: 

Distilled spirits (imported excise) 187,478, 577 204,793,990 17,315,413 9.2 

Distilled spirits (domestic excise) 1,402, 251,860 1,636, 057, 037 233,905,177 16.7 

Distilled spirits rectification tax. 31,812,387 32, 721,066 908,679 2.9 

Wines 72,373, 725 80,534, 564 8,160,839 11.3 Floor taxes, wines and liquors 93,808,383 27,956,121 —65,852, 262 —70.2 

Bottle or container stamps 13,393,406 14,392,841 999,935 7.5 

Malt liquors 727,603,681 762,982, 757 35,379,076 4. 9 

Special or occupational taxes 20,397,670 21,486,802 1,089,132 5.3 

Total alcohol taxes 2,649,119,689 2,780,925,178 231,805,489 9.1 

Wagering taxes 5,345,068 10, 475, 375 5,180,309 96.0 

Tobaceo taxes 1,585,162,382 1,654,910,962 89,798,580 5.7 

Documents, other instruments, and playing 

cards 84,995,421 90,319,229 5, 323,808 .3 

Manufacturers' excise taxes 2,348,993,116 2,862,788.097 513,844,981 21.9 

Retailers' excise taxes 475,465,936 496, 009,033 20, 543, 097 4. 3 

Other taxes (communications, transportation, admissions, oleomargarine, etc., and 

repealed taxes not listed above) 1,942,120,70D 2,050, 688, 618 108, 561, 916 5.6 

Total miscellaneous internal revenue 9,804,305, 298 10,837,400, 927 1, 033,095, 629 10.5 

Grand total 65,009,565, 560 69,686, 535,389 , 676, 949,829 7.2 

Non—The amounts shown represent the receipts from tax stamps; special taxes (such as licensing); 

amounts paid during the year toward discharging he tax liability reported on returns II ; and collections 

received as a direct result of enforcement efforts, such as additional tax, interest, penalties, costs, court fines 

for violation of the narcotic laws, proceeds from seizures in connection With attempted evasion of taxes on 

distilled spirits, Judgments, offers in compromise, etc. 

Estimated, for purposes of comparison with earlier. Beginning January 1951, collections of tax 

withheld are not separated as between income tax and old.age insurance. The collections of old-age insurance 

tax imposed on self-employment income for taxable years beginning on or after January 1951, are reported in 

combination with individual income tax other than tax withheld. The figures shown reflect the estimated 

components of the combined amounts. 

COLLECTIONS FROM INCOME, PROFITS, AND EMPLOYMENT TARES 

The 1953 collections from income, profits, and employment taxes 

aggregated $58.8 billion. This is $3.6 billion, or 11 percent more than 

the 1952 collections of these taxes. This increase accounts for 76 

percent of the overall increase of $4.7 billion in the total 1953 collections. 

Corporation income and profits taxes.—The 1953 collections of corporation income and profits taxes were $21.6 billion, or $128 million more 

than the total of such taxes collected in the 1952 fiscal year. This increase results largely from the provisions of the Revenue Act of 1951. 

First, the increased rates provided for in that act were fully effective 

for the calendar year 1952, whereas they only partially covered the 

preceding year. Another provision of this act resulted in a temporary 

shifting of the due dates of the quarterly payments due on certain fiscal 

year returns, with the result that some payments normally due in the 

fiscal year 1952 were not payable until the fiscal year 1953. The acceleration of quarterly payments under the provisions of the Revenue 

Act of 1950 was also a factor in the increased corporation income 

tax collections. 

Individual income and employment taxes.—The 1953 collections of 

individual income and employment taxes were $37.2 billion, or $3.5 

billion more than the 1952 collections of such taxes. This is an increase of 10.4 percent. 

The increase in individual income tax not withheld, amounting to 

$58.9 million, reflects the full-year effects of tax increases under the 

Revenue Act of 1951, as well as a higher level of personal income received by individuals during fiscal 1953. 

The $3.4 billion increase in the 1953 fiscal year collections from 

withheld income and employment taxes is attributable to the alltimehigh level of wage and salary payments during this period, exceeding 

even the preceding fiscal year's record level of these payments. 

OTHER INTERNAL REVENUE 

The total of all taxes, other than income, profits and employment 

taxes, collected in 1953 was $10.8 billion, or $1.0 billion more than in 

1952. Reference to the foregoing table will indicate to which of the 

various taxes this overall increase is attributable. The increases in 

the taxes on alcoholic beverages, cigarettes, gasoline, automobiles and 

related products, were due in part to the increases in the rates of these 

taxes made by the Revenue Act of 1951. With certain exceptions, 

these increases were made effective November 1,1951, and their fullyear effects were not realized prior to the 1953 collections. 

RETURNS FILED 

A large part of the work of the Internal Revenue Service revolves 

around the vast number of tax returns filed each year. In addition 

to the examination or audit of the returns, discussed in the following 

pages, many so-called "housekeeping activities" are necessary. Sortmg, classifying and numbering operations; checking, recording and 

depositing remittances; preparing alphabetical index record cards 

numbered to correspond to the identification on the returns; these and 

other operations necessary to the proper control and physical handling 

of many millions of returns contribute to the magnitude of the task. 

There were 93,208,277 tax returns filed in fiscal year 1953, as 

compared with 89,295,005 returns filed during the preceding fiscal 

year. Of the total number of returns filed, 67,176,407 were income tax 

returns, including 6,109,056 declarations of income. The employers' 

tax returns, which totaled 16,897,910, comprised the next largest 

group. 

The income tax returns filed in any one fiscal year are, for the most 

part, returns for the tax year ending 6 months earlier. Returns filed 
6 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 7 

in fiscal year 1953 are largely those filed for calendar year 1952 and 

part-year returns and fiscal-year returns for which the filing period 

ended in the latter part of the calendar year 1952. The number also 

includes delinquent returns for prior tax years, and amended returns 

which show an increase in tax. Amended returns showing a decrease 

in tax are considered as claims and are not counted as returns filed. 

The employers' tax returns filed ia the fiscal year 1953 include 

employers' quarterly returns of tax withheld on wages (a combined 

return covering both income, and Federal insurance contributions act 

taxes withheld), employers' quarterly returns of railroad retirement 

tax, and annual returns of unemployment tax filed by employers of 

ei' or more individuals. ght

The table that follows shows the number of returns filed by principal 

type of return for fiscal years 1952 and 1953. 

Type of return 

Fiscal year 

1962 1953 

Income taxes: 

Individual: 

Citizens and resident aliens 54,602,736 58, 547,854 

Nonresident aliens 77,910 93,074 

Declarations of income 6,779, 975 6,109,056 Fiduciaries 377,390 424,481 

Partnerships 922, 926 1,062,476 

Withholding agents 7,994 10,558 

Corporation: 

Income and profits 748,517 789,989 

Personal holding companies 6,836 10,109 

Army and Navy contracts 227 16 

Exempt organizations 119,410 116,189 

Other 19,626 12,620 

Total income tax returns 62,658, 502 67,176,407 

Employment taxes: 

Withheld income and old-ate insurance 16,152,841 16,286,329 

Carders 21,667 23, 958 

Unemployment insurance 577,724 587,628 

Total employment tax returns 16,752,232 16,897,910 

Estate tax. 34,151 37,078 

Gift tax 45,656 49,197 

Miscellaneous taxes 7,588,285 7,733,992 

Special taxe 1,300,773 1,224, 438 

All other 915,406 89, 256 

Grand total 89,295,005 92, 208,277 

ENFORCEMENT WORK 

RETURNS EXAMINED 

General.—The overwhelming majority of American taxpayers 

respond conscientiously to their obligations under the tax laws enacted 

by the Congress. While this exceptionally high degree of voluntary 

and conscientious tax compliance makes it unnecessary to examine 

thoroughly all of the many millions of tax returns filed each year and 

thus reduces both the extent and difficulty of the tax enforcement 

problems of the Internal Revenue Service, there remain substantial 

numbers of returns requiring corrections because of carelessness, 

ignorance, or wilfulness on the part of the taxpayers filing the returns. 

Since it is incumbent upon the Internal Revenue Service to insure 

maximum compliance with the tax laws, those returns believed to be 

most in need of correction, are segregated through a preliminary inspection process, and as many are examined each year as the resources 

of the Service will permit. 

Mathematical venfication.—The first step in determining the accuracy, of the tax returns is a verification of the mathematical steps shown 

in the taxpayers' computations. In this process consideration is limited to the mere arithmetic of computing the amount of tax due, and 

corrections made are not subject to review in the appellate processes. 

Therefore, the notices sent to taxpayers with respect to such corrections 

state that the adjustment is the result of a mathematical verification 

of the return and that if subsequent audit discloses that additional 

information is necessary or further changes must be made, the taxpayer 

will be notified. 

The mathematical verification is not always a preliminary action 

but is sometimes deferred and combined with subsequent examination. 

When this is done, of course, any mathematical corrections are included 

in the notice sent to the taxpayer, as part of the overall proposed 

adjustments in tax. 

There is no mathematical verification with respect to individual income tax returns filed on Form 1040–A, since the original tax computations are made on such returns in internal revenue offices. 

The results of the mathematical verification of income tax returns 

during 1953 are shown in the following table. 

Class of return Number of 

returns yenned 

Number of re. 

turns on which 

changes Were 

made 

Amount of tax 

increase 

Amount of tax 

decrease 

Individuals and fiduciaries_ _______ ____ 

Corporations ---- 

Total 

51,968, 178 

684,302 

1,693,793 

10,418 

$97,689,956 

3, 174,616 

226, MO, 933 

687,606 

52,652• 980 1,704,211 100,867,572 27,338,539 

Selection of returns for examination. —Since it is neither necessary 

nor possible to examine thoroughly every tax return filed, a basis must 

be established for selecting the returns to be examined. Stated in its 

broadest terms, the basic selection principle is that those returns will 

be examined which, upon preliminary inspection, indicate the largest 

potential deficiency or overassessmeut of tax. A preliminary inspection of more than 68 million returns of all types was made in the fiscal 

year 1953, and of this number, 3,486,977 were selected for examination. 

Included in the returns selected for examination were those returns 

requiring audit because of related claims, taxpayers' requests, or other 

features which make examination mandatory. Other returns were 

selected through a procedure involving close inspection of certain 

classes of returns in which past experience indicates that errors commonly occur. The basis of experience has been fortified by data secured through the Audit Control Program, which was begun in 1949 

as a means of increasing the effectiveness of audit and investigative 

techniques. 

Examination of returns.—An examination may be defined as an audit 

of a tax return which involves contact with the taxpayer or his representative to determine the accuracy of items on the return and to make 

281223-04-2 
1952 1953 

Number of returns 

examined 

Type of return 

Income and profits taxes: 

Corporations 

Individuals and fiduciaries 

Partnerships 

Total income and profits taxes 

Other than income and profits taxes: 

Estate and gift taxes' 

Miscellaneous 

Total other than income and profits taxes 

Grand total 

153,938 110,966 

3,555,265 2, 485,390 

49,870 34,993 

3,759,073 2,631.349 

59, 989 58,037 

235, 464 257, 400 

295,453 315.437 

4,054, 526 2,946, 786 

8 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

certain that such items conform with the laws and regulations. In the 

case of income tax returns items of income, exemption and deduction 

are verified. 

Examinations are of two types—office audits and field examinations. 

The former involve contact with taxpayers through correspondence 

or interview on Internal Revenue premises, while the latter involve 

examination of the taxpayer's books, records, bank accounts, etc., in 

his home or place of business. Returns of greater complexity and those 

involving the larger businesses usually require field examination. In 

field examinations, wherever practicable, all Federal tax returns of a 

taxpayer are audited at one time, regardless of the types of taxes to 

which they relate. 

Where the examination discloses errors in items reported or application of laws, the agent makes the necessary corrections. If a tax 

increase results, the agent computes the deficiency owing the Government. If a tax decrease is indicated, the agent computes the overassessment for refund to the taxpayer or for credit against any other 

taxes he may owe. 

At the conclusion of an examination, the agent discusses his findings 

with the taxpayer and, if a proposed deficiency or overassessment is 

involved, affords the taxpayer an opportunity to execute the appropriate agreement form. If the taxpayer does not agree or does not 

wish to execute an agreement form, he is advised of his right to an 

informal conference and is furnished a statement identifying the 

proposed adjustment. 

The purpose of the informal conference is to provide an opportunity 

to resolve issues at the earliest possible time, in an atmosphere of 

informality, in order that the case may be disposed of as simply as 

possible under the law. Hence, the conferences are held prior to the 

preparation of the examining agent's final report, without the issuance 

of any 30-day letter by the director, and without requiring the filing of 

any written protest or brief by the taxpayer. 

If the taxpayer agrees with the decision reached at the informal 

conference, the appropriate agreement form is executed and the 

examining agent prepares a report giving effect to the conference 

conclusions. Following a review of the entire file, the case is made 

ready for closing, and a copy of the examination report is mailed to 

the taxpayer. 

Where no agreement is reached with the taxpayer at the time of 

examination or as a result of informal conference, a 30-day preliminary 

notice of adjustment is forwarded to the taxpayer, accompanied by a 

copy of the audit report. This notice affords the taxpayer a period 

of 30 days in which to sign an acceptance or file a formal protest 

requesting a conference under the appellate procedures described on 

pages 22-24. Where an overassessment is the only tax adjustment 

proposed and the taxpayer signs an acceptance or fails to respond to 

the 30-day notice, the taxpayer's account is adjusted to give effect 

to the overassessment and a refund of tax and interest is made if 

required. 

Where the adjustment involves a deficiency in income, profits, estate 

or gift taxes and the taxpayer fails to respond to the preliminary 30-

day notice, a statutory notice of deficiency is issued providing a period 

REPORT ON OPERATIONS 9 

of 90 days in which the taxpayer may sign an acceptance or file an 

appeal with The Tax Court of the United States. If the taxpayer 

signs an agreement, or fails to respond to the statutory notice within 

the 90-day period, the amount of the deficiency plus interest due is 

listed for assessment and collection. However, if the taxpayer 

appeals to The Tax Court of the United States for a redetermination 

of the tax, assessment of the deficiency is deferred pending final 

determination of tax liability (see pp. 24-25). 

The following table shows the number of returns examined during 

the fiscal years 1952 and 1953 by type of return. The figures include 

all returns for which the examiners' reports had been submitted by 

June 30, 1953, whether or not the cases had been finally released by 

reviewing officers on or prior to that date. 

1 Includes gift tax returns verified in the National Office, numbering 39,030 for 1952 and 38,159 for 1953. 

The number of returns reported as examined for 1953 is substantially 

below that for 1952 and prior years for the following reasons: 

(1) Basis of counting. —Under the former organization there was 

a close relationship between office audit and mathematical corrections 

made in the offices of the collectors of internal revenue. Accordingly, 

each case handled, whether it was an office audit or a change in tax 

resulting from a mathematical error, was counted as one case examined. With the new organization, a clear line has been established 

between these two types of cases. The mathematical error cases 

are being handled solely as a part of the collection processes and 

office audits as a part of the audit operations. Therefore, as each 

office was established between May 20, 1952, and December 1, 1952, 

mathematical error cases ceased to be counted as examined cases. 

Thus, for 1952 and prior years, mathematical error cases are included 

in the number of examined cases. For 1953, they are included only 

to the extent that they were processed prior to the time each district 

office was reorganized. The precise extent of inclusion of mathematical verifications as examination of returns in the figures for 1953 and 

prior years can not now be determined. 

(2) Relocation of audit functions. —Beginning May 20, 1952, a 

gradual reorganization of each of the field offices as provided by 

Reorganization Plan No. 1 of 1952 was undertaken. The audit work 
10 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

formerly performed by the collectors of internal revenue was transferred to the newly-created audit division of each director's office 

as each director's office was established. The personnel conducting 

such audit in the collector's office could not in every instance be 

tranferred simultaneously with the transfer of the work because of 

factors relating to personnel management. Accordingly, there has 

been a lag in the transfer of the personnel. To the extent of the lag, 

the audit work has been delayed during the year 1953 as compared 

with prior years. The long-range effect of the change will be higher 

quality examinations—but a temporary disruption was inevitable 

in the adjustments necessary to effect the long-range improvements. 

(3) Ehiferencee in available manpower.—Less manpower was available during 1953 than in 1952; first, because of a decrease in appropriations as between the two years, and, secondly, because of the assignment of a larger number of enforcement officers to assist taxpayers 

in the filing of their returns during February and March of 1953 than 

during the previous filing period. Returns reviewed by enforcement 

officers in the course of assisting taxpayers in the preparation of their 

returns are not included in the number of returns examined. 

The changes in tax liability resulting from the examination of tax 

returns are included in the section on changes in tax liability, pages 

26 to 32. Additional assessments as a result of audit are shown in 

the table on page 27, while refunds made to taxpayers as a result of 

examiners' findings are included in the table on page 29. 

FRAUD INVESTIGATIONS 

General.—In addition to the regular examination of returns, special 

consideration is given the returns of taxpayers who attempt to evade 

the tax properly due from them. Where such fraud is suspected, the 

tax returns are subjected to a joint investigation by special agents 

of the Intelligence Division and examining agents to determine the 

extent to which fraud is involved. Special agents' duties relate 

primarily to the development of evidence suitable for presentation 

in court against those found to be evading taxes and involve the 

following three types of cases: (I) regular tax fraud, (2) racketeer, and 

(3) wagering tax. This fraud work is reported on a case basis rather 

than on number of returns as regular examinations are reported. A 

case may involve several returns of one taxpayer and/or returns of 

several taxpayers. (These returns are included in the examinations 

shown in the foregoing table.) 

During 1953 a total of 3,296 cases of suspected criminal fraud were 

completed. In 1,276 of these cases recommendations for criminal 

prosecution were made to regional offices of the Chief Counsel. 

(Results obtained in criminal proceedings are shown on pp. 19-20.) 

Fraud penalty, but no prosecution, was recommended in 1,237 cases; 

196 cases resulted in additional tax but no fraud penalties; 148 were 

closed without change; and 439 were found not to warrant a fraud 

investigation. A table showing the criminal fraud investigations 

included in the enforcement work for fiscal years 1952 and 1953 

follows: 

REPORT ON OPERATIONS 1 1 

Item 

Fiscal year 

1952 I 1953 

Investigations Initiated during year 4, 162 3.203 

Total disposals 3,872 3,296 

Action recommended: 

Prosecution 1,247 1,276 

Fraud penalty (no prosecutton)— 1,597 1,237 

Deficiency (no fraud penalty) 263 196 

No change 132 148 

Fraud Investigation not warranted 683 439 

Pending end of period 3,658 8560 

Regular tax fraud cases pertain to tax evasion by persons having 

legitimate interests and income, as distinguished from racketeers. 

During 1953, such cases continued to make up the major portion of 

the fraud cases handled. A total of 1,856 investigations involving 

regular fraud cases were completed during 1953, of which 522 were 

referred to the Chief Counsel's regional offices with a recommendation 

for prosecution. 

Racketeer cases.—Historically, the investigation of income tax 

evasion by criminals and racketeers has been a notable part of the 

work of the Internal Revenue Service. During 1953 the racketeer 

program was continued as an integral part of enforcement work. 

Experienced special agents are assigned to ferret out the facts concerning the financial affairs of members of the underworld. These 

agents, together with selected revenue agents and collection officers, 

form the special "racket squads" whose duty it is to identify possible 

tax evaders among criminal groups and then apply the extra effort 

required in such cases to develop evidence to support criminal sanctions or civil penalties. 

During 1953 full-scale fraud investigations were conducted in 

440 racketeer cases, and cases involving 281 individuals were referred 

to the Department of Justice for criminal prosecution. (The total 

number of racketeer investigations completed, including nonfraud 

cases, was 15,872.) 

Early in 1953 the Supreme Court upheld the wagering tax law, 

clarifying the obligation of those persons conducting gambling 

activities such as bookmaking, lottery, numbers, policy, and bolita 

to purchase registration stamps and pay monthly the 10 percent excise 

tax on gross amount wagered. There has been reluctant compliance 

by the gambler-operators, and stringent' enforcement measures are 

necessary to insure the collection of this tax. Police officials throughout the country have been very cooperative in submitting to internal 

revenue agents information and evidence concerning gamblers in 

their communities. 

During the year, 15,710 wagering occupational tax stamps were 

issued. A total of 1,000 wagering tax fraud cases were investigated and 

the cases of 457 individuals were referred to United States Attorneys 

for criminal prosecution. 
12 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

ALCOHOL AND TOBACCO TAX REGULATORY WORK 

General.—The Internal Revenue Service is charged with the 

administration and enforcement of the laws and regulations relating 

to liquor, tobacco, and firearms, including the determination of 

liability for taxes imposed by these laws. This involves the regulation 

of approximately 500,000 individuals or firms operating under the 

internal revenue alcoholic beverage laws and over 4,000 dealers 

and manufacturers of tobacco or tobacco products. It also involves 

the detection and seizure of installations operating illicitly to evade the 

taxes imposed by.these laws, as well as the detection and arrest of 

persons engaged m the illicit operations. Summary data covering 

the manufacture of alcohol and tobacco products and the enforcement 

results in this area are shown below and in the Appendix. More 

detailed tabulations relating to the production of alcohol, distilled 

spirits, beer, wines, and tobacco manufactures during 1953 (corresponding to the tables which appear in the Appendix of earlier issues 

of this report) are presented in a separate Internal Revenue Service 

publication entitled "Statistics Relating to the Alcohol and Tobacco 

Industries for the Fiscal Year Ended June 30, 1953." This publication may be obtained at a price of 40 cents from the Superintendent 

of Documents, United States Government Printing Office, Washington 

25, D. C. 

Liquor plants and permittees.—Qualification under the internal 

revenue laws is required of any person engaging in the manufacture, 

storage, processing, or distribution of alcohol and alcoholic liquors. 

The following table presents a comparison of the principal establishments authorized to operate on June 30, 1952, and June 30, 1953. 

Class of establishment 

June 30 

1962 1953 

Registered distilleries 120 110 

Fruit distilleries 117 114 

Internal Revenue bonded warehoues 253 244 

Industrial alcohol plants 54 47 

Industrial alcohol bonded warehouses 63 59 

Denaturing plants 56 52 

Rectifying plants 168 157 

Tarpaid bottling houses 65 61 

Wineries 768 732 

Breweries 

Vinegar factories 

334 8 312 

7 

Fruit-flavor concentrate plants 10 12 

Wholesale and retail dealers 488,969 473,321 

Total 490, 985 475, 228 

Distilled spirits production, withdrawals, and stocks.—The total 

production of all distilled spirits for the fiscal year 1953 (by registered 

and fruit distilleries) amounted to 134,475,441 tax gallons, as compared with 221,865,781 tax gallons produced during the preceding 

fiscal year. The production of whisky for 1953 amounted to 66,765,449 

tax gallons, as compared with 103,543,953 tax gallons for the preceding 

year. 

REPORT ON OPERATIONS 13 

The production of each kind of distilled spirits, produced by registered or fruit distilleries, for the fiscal year is compared with such 

production during the preceding year in the following table: 

Kind of spirits 

Tax gallons produced 

Fiscal year 

1952 

Fiscal year 

1953 

By registered distilleries: 

Whisky: 

Bourbon 

Rye 

Corn 

Other 

Total 

Brandy 

Rum: 

84,026,801 

9,517,107 

9,273,166 

727,889 

54,53,424 

9,

4

685,372 

6, 771, 265 

885,388 

103, 543,953 

3,270 

66, 765,449 

290,011 

Beverage 148,499 188.919 

Industrial 1,763,339 I, 890, ES2 

Total 1,911,838 2,079,801 

Gin 8,156, 782 11,601.283 

Vodka 362,007 468.857 

Spirits 62,814, 536 20,441,187 

Total 176,792,380 101,646, 588 

By fruit distilleries: 

Brandy 9,617,770 5,901,542 

Spirits 35, 655,625 26,927,311 

Total 46,073, 395 32,828,863 

Grand total 221,865, 781 134, 475, 441 

I Re resents bourbon mash whisky, rye mash whisky, etc., so designated by virtue of being packaged in reused cooperage. 

The internal revenue tax must be paid on all alcoholic liquors withdrawn for domestic beverage use. Tax is also paid on distilled spirits 

withdrawn for use in the manufacture of certain nonbeverage products such as medicinal preparations, flavoring extracts, etc. The 

total taxpaid withdrawals of all distilled spirits (including alcohol) 

amounted to 155,926,501 tax gallons during the fiscal year 1953, as 

compared with 141,790,630 tax gallons for 1952. 

The law permits alcoholic liquor to be removed free of tax under 

certain conditions Generally, tax-free withdrawals may be made for 

export, for use of the United States, for hospital and experimental 

purposes, etc. The following table presents a comparison of the 

tax-free withdrawals of distilled spirits during the fiscal years 1952 

and 1953. 

Item 

Tax gallons 

Fiscal year 

1962 

Fiscal year 

1953 

Brandy and spirits-fruit withdrawn for fortification 38.262,302 28, 215, 449 

Distilled spirits withdrawn for use of the United States 8, 852, 680 27, 535 

All other 5,765, 200 5,642,642 

Total 52,880,182 33, 885,620 
14 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Under authority of Treasury Decision 5864, effective November 7, 

1951, issued pursuant to House Joint Resolution 73 (Public Law 76, 

82d Cong.) there were transferred 10,245,910 tax gallons of distilled 

spirits from registered distilleries and internal revenue bonded warehouses to industrial alcohol plants and industrial alcohol bonded 

warehouses. After transfer these spirits are not separately reported 

but are included in statistics as alcohol. 

The total taxpaid domestic and imported distilled spirits and wines 

used in the production of rectified products during the fiscal year 

1953 amounted to 97,763,822 proof gallons, consisting of 29,713,013 

proof gallons of whisky, 43,954,463 proof gallons of spirits, 19,780,391 

proof gallons of alcohol, and 4,315,955 proof gallons of other materials. 

The total production of rectified products for the fiscal year 1953 

amounted to 97,771,709 proof gallons, consisting of 83,888,227 proof 

gallons of whisky, 5,566,358 proof gallons of gin, 3,945,863 proof gallons of cordials and liqueurs, and 4,371,261 proof gallons of other 

products. The total rectified production in 1952 was 93,927,938 

proof gallons. 

The following comparative table shows quantities of distilled spirits 

taxpaid and bottled for consumption during 1952 and 1953, exclusive 

of distilled spirits bottled for exportation. 

Fiscal year 

Item 

1963 

159,687,487 174,856,834 

Rectified products 

TJnrectifled products 

Bottled4n-bond products 

Wine gallons 

113, 764, 774 

49,072,564 

12,019,496 

Total 

The following table presents a comparison of the stocks of distilled 

spirits in internal revenue bonded warehouses as of June 30, 1952, 

and June 30, 1953. 

Fiscal year 

Item 

730,919,161 

14,471,853 

1,816,635 

1, 22f), 913 

81,079 

133,504,123 

937,156,333 881,813,464 

Whisky 4 years old or older 

Total whisky 

Brandy 

Rum 

Vodka 

Spirits 

Total 

Fermented malt liquors and wines—production and withdrawals.— 

Production of fermented malt liquors during the fiscal year amounted 

to 90,433,832 barrels, or 0.9 percent more than the preceding year 

(89,600,916 barrels). Taxpaid withdrawals were 84,559,162 barrels, 

REPORT ON OPERATIONS 15 

or 0.3 percent more than the preceding year (84,293,646 barrels). 

Tax-free withdrawals for export were 1,163,946 barrels. 

Production of still wines amounted to 130,267,190 wine gallons, 

23.0 percent less than the preceding year (169,121,331 wine gallons). 

The taxpaid withdrawals of the various classes of domestic wines for 

the fiscal year 1952 as compared with 1953 are shown in the following 

table: 

Item 

Fiscal year 

1952 1953 

Still wines (wine gallons) 121,809, 732 131,2113,326 

Sparkling wines (half-pint units) 22,500,104 28, 78%242 

Vermouth (wine gallons) 2, 744,432 3,013,904 

Aperitif wines (wine gallons) 217,975 200,430 

Production, withdrawal, and stocks of ethyl alcohol.—The total ethyl 

alcohol production for the year amounted to 484,990,164 proof gallons, 

as compared with 467,389,720 proof gallons for 1952, an increase of 

3.8 percent. The total importations as represented by withdrawals 

from customs custody for the fiscal year 1953 amounted to 4,925,975 

proof gallons as compared with 131,831,458 proof gallons for 1952. 

Primarily, alcohol withdrawn tax-free is for denaturation. The 

total tax-free withdrawals of ethyl alcohol during the year amounted 

to 482,516,075 proof gallons of domestically produced ethyl alcohol 

(including imported alcohol mingled with domestic alcohol). 

The total quantity of domestic and imported ethyl alcohol withdrawn for denaturation during the year amounted to 444,845,420 

proof gallons as compared with 489,788,861 proof gallons for 1952, a 

decrease of 9.2 percent. (This represents the quantity of domestic and 

imported alcohol, and spirits produced by registered distilleries and 

redesignated upon receipt at denaturing plants as alcohol, which was 

actually used at denaturing plants for denaturation.) The total 

quantity of domestic and imported ethyl alcohol withdrawn for use of 

the United States amounted to 35,189,402 proof gallons, of which 

31,859,506 proof gallons were withdrawn tax-free for use by Government-owned plants in the production of butadiene for the synthetic 

rubber program. During the year 2,310,974 proof gallons of domestic 

ethyl alcohol were withdrawn for hospital, scientific, and educational 

use. 

During the year there were produced 239,202,023 wine gallons of 

specially denatured alcohol, as compared with 261,500,458 wine 

gallons for the fiscal year 1952; and 626,773 wine gallons of completely denatured alcohol, as compared with 993,027 wine gallons for 

the fiscal year 1952. The total production was 239,828,796 wine 

gallons, as compared with the total production of 262,493,485 wine 

gallons for 1952. The quantity of specially denatured alcohol used 

in the manufacture of synthetic rubber amounted to 28,614,768 wine 

gallons for the fiscal year 1953, as compared with 72,682,818 wine 

gallons for 1952. 

During the year taxpaid withdrawals of ethyl alcohol amounted to 

23,574,481 proof gallons, as compared to 27,693,219 proof gallons for 
16 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

1952. As of June 30, 1953, the stocks of domestic and imported 

ethyl alcohol amounted to 72,517,909 proof gallons, as compared with 

88,376,108 proof gallons as of June 30, 1952, a decrease of 17.9 percent. 

Under authority of Treasury Decision 5864, there were transferred 

14,238,510 proof gallons of domestic ethyl alcohol from industrial 

alcohol plants and industrial alcohol bonded warehouses to registered 

distilleries and internal revenue bonded warehouses. After transfer, 

this alcohol is not separately reported but is included in statistics as 

spirits. 

Production of vinegar.—The production of vinegar by the vaporizing 

process for the fiscal year 1953 amounted to 7,320,571 gallons (100-

grain strength) as compared with 9,327,613 gallons for the fiscal year 

1952. 

Laboratory activities.—The Internal Revenue Service maintains 

laboratories which perform chemical research and laboratory work 

for the Internal Revenue Service and analyze samples submitted by 

the Bureau of Narcotics. The laboratories are primarily concerned 

with research problems such as development and modification of 

methods of analysis which will be useful in determining the tax status 

of many products and in the enforcement of internal revenue laws and 

regulations. They also collaborate with the Association of Official 

Agricultural Chemists in developing and selecting methods of analysis 

for official adoption. The Food and Drug Administration, Bureau 

of Customs, Tariff Commission, The Committee of Revision for the 

Pharmacopoeia of the United States, The Committee on National 

Formulary, and representatives of other nations often confer with 

members of the laboratories. Collaborative work is done with the 

United Nations to improve the methods of assaying opium and to 

determine the country of oriFin. 

Inspection activities.—During the year a total of 85,644 inspections 

were made of plants and permittees operating under the alcoholic 

beverage laws, of which 2,892 were made pursuant to original applications and notices filed by persons entering the beverage or industrial alcohol industries. Inspections made at tobacco, cigar and 

cigarette, and tobacco products factories and storage warehouses numbered 6,154. Final administrative review of the action taken with 

respect to applications, notices, bonds, plats, plans and other documents required by law and regulations to be filed in connection with 

new establishments, discontinuances, changes in premises, equipment, 

and personnel amounted to 20,371 items. 

Basic permits, labels, and advertising.—The Federal Alcohol Administration Act requires all distilled-spirits bottlers, rectifiers, and wine 

blenders, as well as producers (other than brewers), importers, and 

wholesalers of alcoholic beverages to secure basic permits. The number of outstanding basic permits of all classes in effect on June 30, 

1953, totaled 16,405 as compared with 17,105 in effect at the end of 

the preceding year. 

The Federal Alcohol Administration Act also provides that no 

person engaged in business as a bottler or importer shall bottle, or 

remove from customs custody for consumption, any distilled spirits, 

wine or malt beverages, unless he has obtained and has in his possesREPORT ON OPERATIONS 17 

sion a certificate of label approval, or certificate of exemption from 

label approval, covering the labels affixed to the products domestically 

bottled or withdrawn in bottles from customs custody. In the case 

of malt beverages, the labeling requirements of the Act are applicable 

only to the extent that the laws of the State into which such malt 

beverages are introduced are similar to the Federal malt beverage 

labeling:requirements.t ' , During the year 35,569 applications were received as compared with 33,575 applications received during the fiscal 

year 1952, an increase of 1,994. The distilled spirits labeling regulations were amended to permit the use of the words "bottled by," in 

lieu of the words "distilled by," "blended by," "made by," or "prepared by" on labels of distilled spirits, to facilitate bottling operations 

under trade names. 

For the purpose of determining compliance with the advertising 

provisions of the Federal Alcohol Administration Act and regulations 

issued thereunder, 133,730 alcoholic beverage advertisements, appearing in 28,610 publications, were reviewed during the year. Radio 

continuities numbering 5,261 and 3,128 pieces of "point-of-sale" 

advertising material were also examined. Regulatory action of a 

corrective nature was taken in 934 cases where minor technical 

irregularities were observed. As a service to the industry and in order 

to forestall the dissemination of improper advertisements, 2,546 

advertisements or advertising campaigns were reviewed and commented upon prior to publication; 

One hundred six interlocking directorate applications, submitted 

pursuant to section 8 of the Federal Alcohol Administration Act, were 

received and approved. 

Six basic permits were suspended for varying periods and one was 

revoked for violations of the Federal Alcohol Administration Act and 

the internal revenue laws. Thirty-five permits were revoked, as 

required by law, because the holders thereof had not engaged in operations for more than 2 years; 2 permits were annulled; and 90 cases (54 

involving unlawful operations without permits, 15 involving trade 

practice violations, 20 involving labeling violations, and 1 involving 

violations of the internal revenue laws) were closed upon the acceptance of offers in compromise, pursuant to section 7 of the Federal 

Alcohol Administration Act. 

Seizures and arrests.—The upward trend in seizures for violations of 

the internal revenue liquor laws, first noted in 1947 after the discontinuance of sugar rationing, continued during the year. Violations of 

the internal revenue liquor laws were confined largely to regions of 

low income where the demand for cheap spirits was high, and to local 

option areas where taxpaid liquor was not readily available. 

During the fiscal year 10,699 illicit stills were seized, together with 

6,151,082 gallons of mash, 172,951 gallons of illicit liquors and 2,333 

automobiles and trucks, included in seized property valued at a total 

of $3,104,525. There were 9,370 persons arrested for violations of 

internal revenue laws relating to liquor, tobacco and firearms, and 

8,249 persons were recommended for prosecution in Federal courts 

under these laws. The following table shows seizures and arrests for 

liquor law violations during the fiscal years 1949 to 1953. 
18 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Fiscal Year seized Stills 88" 

Gallons of 

mash seized 

Cars and 

trueksseized 

Persons 

arrested 

1949 8,008 3, 681,432 1,596 8,915 

1950 10,030 4,892,608 2,074 10,236 

1951 10,177 5,545,411 2,246 10,384 

1952 10,269 A 700,599 2,188 9,851 

1953 10,699 6,151,082 2,333 9,370 

The changes in tax liability resultmg from alcohol and tobacco tax 

enforcement work are included in the section on changes in tax 

liability, pages 26 to 32. Additional assessments are shown in the 

table on page 27, while refunds are included in the table on page 29. 

There were 2,875 floor stocks tax cases perfected during the fiscal 

year, making a total of 6,415 since November 1, 1951, the effective 

date of the Revenue Act of 1951. In connection with these cases 

there were seized during the year 1,588 gallons of taxpaid liquors 

valued at $82,982. 

Oklahoma is the only State now entitled to protection on the part 

of the Federal Government under the Liquor Enforcement Act of 

1936. That Act prohibits importation or the attempt to import 

liquors into a dry State unless in accordance with the provisions of the 

State law. As a result of activities of the Alcohol and Tobacco Tax 

Division in the enforcement of this law during the fiscal year, 16 

persons were arrested and 1,023 wine gallons of taxpaid spirits and 15 

vehicles were seized, the seized property being valued at a total of 

$34,155. 

Tobacco activities.—Tobacco activities involve administration of the 

laws and regulations relating to (1) the purchase, sale, and movement 

of leaf and other types or classes of tobacco material; (2) the manufacture, packaging, stamping or taxpayment, removal and sale of chewing 

and smoking tobacco, snuff, cigars, cigarettes, and cigarette papers 

and tubes; (3) the collection of the taxes imposed on such articles; and 

(4) the removal and shipment of such articles, without payment of 

tax, for export, for use as sea stores, for use of the United States, and 

for other tax-exempt purposes. 

During the year there were 281 investigations of alleged violators of 

the laws relating to tobacco, which resulted in the conviction of 17 

violators and the collection of $23,248 in taxes and penalties. 

Statistics covering the manufacture and removal of tobacco, snuff, 

cigars, and cigarettes, will be found in the tables which appear in the 

Appendix. Additional information covering tobacco importation and 

manufacture will be found in the publication "Statistics Relating to 

the Alcohol and Tobacco Industries for the Fiscal. Year Ended June 

30, 1953," mentioned on pap 12. 

Firearms program.—The intensive investigative program initiated 

in 1945 was continued during the year. This involves investigation of 

firearms brought into the country by members of the armed services, 

many of which found their way into the hands of criminals and were 

being utilized in the commission of violent crimes. During the year 

2,964 investigations were conducted, making a total of 110,285 such 

investigations since the beginning of the program. This activity has 

resulted in the registration with the Commissioner of Internal Revenue 

of 16,857 firearms since 1945 with 572 registrations having been reREPORT ON OPERATIONS • 19 

corded during the fiscal year. During the year 216 cases involving 

violations of the National and Federal Firearms Act were submitted 

to the Department of Justice for prosecution. 

LEGAL WORK ON CRIMINAL CA8E8 

Recommendations for criminal prosecution are forwarded through 

the Regional Commissioner's office to the regional office of the Chief 

Counsel for decision as to whether institution of criminal proceedings 

is to be recommended to the Department of Justice. This procedure 

obtains for practically all classes of cases arising under the internal 

revenue laws, including income, profits, estate, gift, and most miscellaneous taxes with the principal exception of alcohol and tobacco 

taxes. (As regards criminal cases involving violations of the internal 

revenue laws relating to distilled spirits and tobacco, the Alcohol 

Enforcement Act of 1936, the Federal Alcohol Administration Act, 

and various laws relating to firearms, the Chief Counsel's office does 

not pass upon the reference of the case to the Department of Justice 

but does assist in the prosecution of the case.) Law and fact letters or 

. criminal reference reports are prepared to accompany these cases 

which are forwarded to the Department of Justice for criminal 

prosecution. Other than wagering occupational tax and certain 

cases wherein the Department of Justice has authorized referral 

directly to the various United States Attorneys, criminal cases are 

referred to the Department of Justice in Washington by the Regional 

Counsel. 

During the year the former Penal Division of the Chief Counsel's 

office was reorganized as the Enforcement Division. Procedures 

were established for review of proposed criminal cases rejected for 

prosecution purposes by the mutual agreement of Regional Counsel 

and Assistant Regional Commissioners (Intelligence). The Chief 

Counsel also reviews proposed criminal cases wherein regional officials 

are not in agreement on the prosecution question and cases which are 

returned by the Department of Justice without approval of the 

prosecution recommended by Regional Counsel. For the improvement of the quality of legal work in criminal cases, procedures were 

reinstituted to require preparation of complete criminal reference 

reports covering fact and law questions other than in wagering tax 

cases or where emergency or limitations of time require immediate 

referral. 

The Chief Counsel also considers offers in compromise in cases 

where criminal prosecution has been recommended or criminal proceedings have been instituted; prepares opinions construing the 

criminal and percentage penalty statutes; at the request of the Director 

of Practice, furnishes legal assistance in proceedings involving dis- i 

barment of attorneys and accountants enrolled to practice before the 

Treasury Department; and handles miscellaneous law questions 

involving criminal cases. 

During the year procedures were established for review of legal 

opinions prepared by Regional Counsel to assure uniformity in their 

interpretations of the criminal and percentage penalty ,statutes. Also 

procedures were established to maintain liaison with the Department 

of Justice through the headquarters office of the Chief Counsel in 

matters involving legal questions or supplemental investigations in 
20 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

criminal cases arising out of the laws administered by the Internal 

Revenue Service. The results of coordination with the Department 

of Justice in matters without legal precedents or involving conflicts in 

decided cases are communicated to all regional counsel and other 

internal revenue offices to assist in uniformity of decisions on the question of criminal prosecution. At the request of the Department of 

Justice or United States Attorneys, legal assistance is furnished in 

grand jury investigations; in preparation and trial of criminal tax 

cases; and in preparation and argument of briefs on appeal. 

During the year 1,503 cases, involving 1,635 proposed defendants 

and relating principally to income and wagering tax violations, were 

forwarded by Regional Counsel. Of these cases 1,405 were recommended for prosecution and 98 were transmitted as related subject 

matter. Included in the cases referred were 796 in the racketeer class, 

of which 507 were wagering tax cases. The previous high involved 

1,414 cases, with 1,529 proposed defendants, transmitted during the 

fiscal year ended June 30, 1952, with prosecution recommended in 

1,284 of the cases and not recommended in 130 cases. 

Conclusion against prosecution by mutual agreement between the 

offices of Regional Counsel and Regional Commissioners was reached 

in 234 cases, and the Department of Justice returned 70 cases without 

prosecution. A total of 1,197 cases were closed and at the end of the 

year the dosing inventory totaled 2,965 cases of which 2,265 were 

awaiting closing or prosecutive action in the Department of Justice 

and United States Attorneys' offices, or awaiting conclusion of prosecutive action in the courts. 

Grand juries returned indictments against 1,347 defendants, and 

no true bills involving 36 proposed defendants. On trial, 145 defendants were convicted and 784 defendants, in 752 cases, entered 

pleas of guilty or nolo contendere, while 47 defendants were acquitted. 

Sentences were imposed involving $3,026,538 in fines; prison sentences 

to be served totaled 349 years, and 1,097 years were imposed in 

suspended sentences and probation cases. In 60 cases, principally 

involving related cases in which pleas or convictions of other defendants were obtained, indictments involving 96 defendants were 

dismissed or nol-prossed. 

DELINQUENT RETURNS AND COLLECTION OF DELINQUENT ACCOUNTS 

Delinquent returns.-In addition to examination of returns timely 

filed, the enforcement work includes the securing and examination of 

delinquent returns. Any return filed later than the time prescribed 

by law is a delinquent return unless an extension of time has been 

authorized by the director or Commissioner prior to the specified 

final date for timely filing. 

When an internal revenue officer finds that a taxpayer is delinquent 

in filing a tax return, the taxpayer is requested to prepare and sign a 

return. To avoid delay or assist the taxpayer, the officer may prepare 

the return from information secured from the taxpayer's records and 

then request him to sign it. If the taxpayer refuses to prepare a return 

or sign one prepared by the internal revenue officer, a substitute return 

must be prepared by the Internal Revenue Service. 

In case of failure to make and file a return within the prescribed 

time, a penalty is added to the tax unless failure to file is shown to be 

REPORT ON OPERATIONS 21 

due to reasonable cause and not to wilful neglect. The penalty is 

5 percent if the failure is for not more than 30 days, with an additional 

5 percent for each additional 30 days or fraction thereof, not to exceed 

25 percent in the aggregate. 

During the year, 1,099,542 delinquent returns were secured, on 

which taxes, interest, and penalties totaling $147,590,072 were reported. This amount is included in the additional tax shown on 

page 24. These results are compared with those for the preceding year 

m the following table: 

Type of tax 

Number Amount of taxes, interest, 

and penalties 

Fiscal year 

1952 

Fiscal year 

1953 

Fiscal year 

1952 

Fisr195rar 

Income 61, 629 63,300 $28,837,343 326,264,049 

Payroll 598,010 534, 768 106,331, 943 98,765,978 

Miscellaneous 692, 489 501,384 27,993, 892 23,660,046 

Total 1,352,128 1,099,542 163,163,178 147,590,072 

Warrants for distraint.-Taxes are assessed by internal revenue 

offices on the basis of liability shown on returns filed or as a result of 

the disclosure of additional tax liability subsequent to the filing of 

the original return. After certification of the assessments, notices 

are given each person liable to pay any taxes stated in the assessments. 

If any person neglects or refuses to pay such taxes within 10 days 

after the notice has been issued, the district director of internal 

revenue or his agent is authorized to collect the taxes, with interest 

and any other additional amounts as required by law, by distraint 

and sale of personal property and real estate of the person delinquent 

in the payment of these taxes. 

In order to collect by distraint it is necessary that a warrant for 

distraint be prepared. The warrant, issued over the signature of the 

district director, sets forth all of the facts regarding the account of 

the taxpayer and authorizes the performances of such acts as necessary, within the requirements of law, to satisfy the taxes as shown in 

the statement of account. 

The following table shows comparative data on warrants for distraint for the fiscal years 1952 and 1953. 

Item 

Fiscal year 

1952 1953 

Number Amount 

(thousands) Number Amount 

(thousands) 

Collected, total 1,389,297 $455,752 1, 7W, 406 $505,592 

Income taxes 1,036,697 331,347 1, 325, 936 354, 354 

Payroll taxes (withholding and employment) 303,205 104,905 820,375 132,487 

Miscellaneous taxes, including distilled spirits 50,395 19,500 1 54, 095 18,761 

Returned as uncollectible 151,938 51,067 124,655 54,046 

On hand, end of period, total 892,662 692,177 1,075, 773 862,106 

Income taxes 656,758 578,057 818,961 718, 749 

Payroll taxes (withholding and unemployment)_ 204,618 89, 022 22$ 819 114,2/4 

Miscellaneous taxes, including distilled sprits 31,286 25,098 33,993 29,143 
APPEALS AND CIVIL LITIGATION 

General.—The primary purpose of the appeals procedure is to provide within the Internal Revenue Service an administrative means 

whereby a taxpayer who does not agree with a proposed adjustment 

to his tax liability may obtain a review of the proposal for the purpose 

of reaching an agreement with respect to the amount of the adjustment. 

The appeals function is decentralized and operates at two organizational levels. In the audit division of each district director's office 

any taxpayer who does not agree with the findings of the examining 

officer may request an informal conference with the examiner's 

superior or a designated conferee (see p. 8). In the Appellate Division, which is independent of the district director's office, a taxpayer 

who is in disagreement with the proposed determination of the district 

director may ask for a hearing on his case. Conference opportunities 

are available in the Appellate Division in cases docketed in The Tax 

Court of the United States as well as in cases not so docketed. 

The jurisdiction of both the Audit Division of the district directors' 

offices and of the Appellate Division extends to all internal revenue 

taxes except those involving alcohol, tobacco, firearms, narcotics, and 

wagering. It applies to disagreements involving overassessments as 

well as deficiencies. 

Organizational and procedural changes made during the year.—As 

each of the district commissioners' offices was established under 

Reorganization Plan No. 1 of 1952, significant changes in organization and procedure relating to appeals were put into effect. The first 

of these offices was established late in fiscal year 1952 and the last 

was established December 1, 1952. Hence, the fiscal year 1953 was a 

year of transition and it was not until December 1, 1952, that the 

changes were effective on a nationwide basis. Accordingly, operating 

statistics for 1953 do not reflect a full year's results under the reorganization. 

The principal changes in appellate organization and procedure were: 

(a) The transfer of the 12-district, nationwide Appellate Staff 

force, including personnel of the Chief Counsel engaged in appellate work, into the Appellate Divisions of district commissioners' 

offices; 

(6) The abolition of the 39 internal revenue agents' conference 

sections and the merger of their personnel and workload into the 

Appellate Divisions; 

(c) The complete redelegation of final settlement authority to 

the associate head of each Appellate Division and the limited 

redelegation of final settlement authority to the assistant heads 

and special assistants to the head of each Appelate Division; and 

(d) The establishment of the informal conference procedure to 

provide an appeal opportunity in each of the 64 district directors' 

offices prior to the preparation of the examiner's final report and 

with no requirement for a written protest by the taxpayer. 

(See p. 8). 

Summary of the new procedure.—A taxpayer who does not agree 

with the findings of the examining officer or has been unable to reach 

a settlement by the informal conference procedure may file a written 

protest with the district director and request consideration of his case 

by the Appellate Division; or may file a petition seeking a redetermination of any deficiency by The Tax Court of the United States. An 

alternative to these avenues of appeal is to pay the tax, file claim for 

refund, and bring suit in a United States district court or in the 

United States Court of Claims. 

Any taxpayer who has petitioned the Tax Court also may request 

a conference in the Appellate Division for the purpose of arriving 

at a settlement without a trial. If such a .settlement is reached, and 

is concurred in by Appellate Counsel, the court will enter a decision 

in accordance with the stipulation entered into by the parties and no 

hearing is necessary. If no agreement is reached at such a conference, 

or if no conference is desired by the petitioner, a hearing is conducted 

before the Tax Court. 

If a hearing is held, the Tax Court may sustain the Commissioner's 

determination, may reverse the entire determination, or may call for 

recomputation of tax in accordance with the findings and opinion. 

A taxpayer who does not agree with the decision of the Tax Court 

may file a motion for rehearing or for reconsideration by the division 

which heard the case; may file a motion for review by the full court; 

and may file a petition with the United States court of appeals for 

review of the decision. 

If the taxpayer desires to appeal from the decision of the court of 

appeals or the Court of Claims, a petition for writ of certiorari must 

be filed with the Supreme Court of the United States. The granting 

of the petition is in the discretion of the Supreme Court. Such a 

review is granted only for special and important reasons. 

In cases involving excise or employment taxes, the procedure 

differs primarily because the jurisdiction of the Tax Court does not 

extend to these levies. Judicial review is restricted to the United 

States district courts and the Court of Claims; with appeals as 

described above. Also, a taxpayer desiring Appellate Division 

consideration of such a case must first file claim for abatement or 

pay the tax and file claim for refund. 

The Appellate Division has no jurisdiction in any case once suit 

is brought on a claim for refund and it may not act in any case in 

which criminal prosecution is under consideration. Neither does it 

have jurisdiction over any issue arising under section 722 of the 

Internal Revenue Code. In the latter cases, exclusive settlement 

authority within the Internal Revenue Service is vested in the Excess 

Profits Tax Council. 

Appellate Division consideration of cases not before the Tax Court.—

In cases not docketed in the Tax Court the Appellate Division acts 

on behalf of the Commissioner to review protested determinations of 

tax liability. Any settlement effected by the Appellate Division is 

final and will not be reopened unless it is shown that the disposition 

involved fraud, malfeasance, concealment or misrepresentation of 

material fact, or an important mistake in mathematical calculations. 

The Appellate Division will not eliminate the ad valorem fraud or 

negligence penalties except with concurrence of Appellate Counsel. 

The Appellate Division's activities for 1953 in the disposition of 

protested income, profits, estate, and gift tax cases not before the 

251228-154 

REPORT ON OPERATIONS 23 22 REPORT OF COMMISSIONER OF INTERNAL REVENUE 
24 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Tax Court are summarized below. (For additional information see 

Table 25, Part I, page 148.) 

Status Number of 

cases 1 

Opening inventory 10,077 

Received 2 20, 962 

Dispositions, total 11,674 

Closed 9,675 

Petitioned 1,999 

Closing inventory 19,365 

1 A case may include several tax years of one taxpayer. 

Receipts for fiscal year 1953 include 10,069 cases transferred from internal revenue agents' conference 

sections merged into Appelate Division during the year under Reorganization Plan No. I of 1952. 

During 1953, in addition to the above dispositions, 262 subsidiary 

cases were closed in accordance with action taken in the respective 

principal case, as compared to 436 such cases closed in 1951 and 815 

in 1952. 

There were 19,365 nondocketed cases on hand June 30, 1953, of 

which 17,990 cases, involving $703,060,590 additional taxes and 

penalties and $123,467,774 proposed overassessments, were awaiting 

action by the Appellate Division, and 1,375 cases involving $47,992,309 

additional taxes and penalties and $3,375,900 proposed overassessments were awaiting taxpayers' action on statutory notice. 

The appellate procedures were extended to excise tax cases late in 

the fiscal year 1952. The following table shows results of the first 

full year's operation with respect to excise tax cases. 

Status 

Number of cases 

Refund 

claims 

Abatement 

claims 

Opening inventory 

Received 

Dispositions, total 

Settled by agreement 

Partial allowance—no agreement 

Claims rejected—no agreement 

Other 

Closing inventory 

69 135 

24 

6 

17 

2 

33 

13 3 

4 

45 102 

Cases petitioned to the Tax Court.—A taxpayer who does not agree 

to a deficiency determined by the Internal Revenue Service in a case 

involving income, profits, estate, or gift taxes and desires a judicial 

opinion of his case may file a petition asking a redetermination of 

the tax by The Tax Court of the United States, an independent 

agency having no connection with the Internal Revenue Service. 

After a petition is filed with the Tax Court, the Appellate Division, 

with the concurrence of the Chief Counsel, may arrange a settlement 

by stipulation of a case before it goes to trial. However, the AppelREPORT ON OPERATIONS 25 

late Division may not modify any determination of an issue under 

section 722 except with concurrence of the Excess Profits Tax Council 

and may not act in any case in which criminal prosecution is under 

consideration. 

The Chief Counsel's office has exclusive authority to represent 

the Commissioner in the defense of all cases pending before The Tax 

Court of the United States which represent appeals from determinations by the Commissioner with respect to income, excess profits, 

estate, and gift taxes. The defense of such cases includes the preparation of motions, answers, and other pleadings, the conduct of 

hearings thereon, the trial of the cases in the Tax Court, the preparation and submission of briefs and recomputations, and the conduct 

of hearings on recomputations, motions, etc. 

The table which follows shows the disposition of petitioned income, 

profits, estate, and gift tax cases by the Appellate Division and by the 

Office of the Chief Counsel during 1953. (For additional information, 

see Table 25, Part II, p. 149.) 

Status 

Number of 

cases 

9,006 

Pending, June 30, 1952 7,677 

Received during year 

16,683 Total to be accounted for 

Disposals: 4,229 

Settled by stipulation 520 Closed by dismissal or default 1,014 Tried before Tax Court on merits 

5, 763 

Total disposals 

10,993 

Pending settlement or trial, June 30, 1953 

The total number of cases decided on merits by the Tax Court 

during 1953 was 960, consisting of 379 cases in which the Commissioner's determination was wholly sustained, 413 cases in which 

the Commissioner's determination was partly sustained, and 168 

cases in which the-Commissioner's determination was reversed. 

During 1953, there were published in the Internal Revenue Bulletin 

acquiescences of the Commissioner in 128 adverse decisions of the 

Tax Court and nonacquiescences in 50 adverse decisions. 

Federal courts.—Tax issues ordinarily arise in the Federal and civil 

courts in one of the following ways: (1) through appeal by the taxpayer or the Commissioner from a decision of the Tax Court; (2) by 

institution of suit in a district court or the Court of Claims by a 

taxpayer for refund of taxes or for injunction; (3) by institution of 

suit by the United States to collect taxes or recover an erroneous 

refund; or (4) by the filing by the United States of a tax claim in an 

insolvency or other debtor proceeding. 

The Chief Counsel's Office exercises general supervision over civil 

tax litigation and advises and participates with the Department of 

Justice in the handling of such litigation. 
1952 1953 

Additional taxes 

Item 

Increase In tax as a result of mathematical verifications: 1 

Individual and fiduciary income taxes 

Corporation income tams 

Total 

Assessments of tax, interest, and penalty on delinquent returns: 

Income taxes 

Employment taxes (including withheld income tax) 

Excise taxes 

Total 

Additional tax, interest, and penalty assessed as a direct result of audit: 

Individual income tax 

Corporation income and profits taxes 

Excess profits taxes (Act of 1940) 

Employment taxes (including withheld income taxes) 

Estate and gift taxes 

Excise taxes 

Alcohol and tobacco taxes 

Total 

Grand total 

$28, 837, 343 

108,331,943 

27,993,892 

25,264,048 

98,765,978 

23. 560,046 

163,163,178 142, 590, 072 

803, 867, 838 

500, 740, 752 

201,972,933 

26, 743,442 

121,420,925 

18,702,133 

3.551,251 

601,067,541 

386,229,792 

156,729,1193 

27, 3119,524 

118,382,195 

13, 745,150 

3,960,600 

1,676,999,274 1,307,513,968 

1,840,162,452 1,565,961,612 

3,174,616 

897, 602, 956 

100, B57, 572 

26 REPORT OF COMMISSIONER OF INTERNAL REVENVE 

The progress of cases in appellate courts on appeals from decisions 

of the Tax Court for 1953 is indicated by the following table: 

Status 

Number of cases 

In courts of 

appeal 

In Supreme 

Court 

Pending July 1, 1952 414 

Appealed 334 4 

Total to be accounted for 748 9 

Closed: 

Favorable to Commissioner 178 6 

Favorable to taxpayers 124 

Modified 22 

Appealed to Supreme Court 4 

Total 332 6 

Pending, June 30, 1953 416 3 

the fiscal year 1953 there were 463 cases mvolving tax issues 

decided y the Federal civil courts (exclusive of bankruptcy, receivership, insolvency, compromise, and liquor cases) in addition to the 

appeals from Tax Court decisions noted above. The distribution of 

these cases, by court involved and according to the nature of the 

decision, is as follows: 

Courts 

For the 

Governmeat 

Against 

Government 

Partly for 

 parilY against 

Government 

Total 

District courts 

Courts of appeal 

Court of Claims 

Supreme Court 

Total 

149 

66 

12 

1 

178 

39 

10 

a 

5 

1 

2"RM''' 

227 230 6 

As of June 30, 1953, there were 2,899 civil cases involving tax 

questions pending in the district courts, 66 pending in courts of appeal, 

and 404 pending in the Court of Claims. 

CHANGES IN TAX LIABILITY 

ADDITIONAL TAXES 

Understatements of tax were found on slightly more than half of the 

3 million tax returns examined during the year. These understatements of tax were due to errors in reporting income, in claiming exREPORT ON OPERATIONS 27 

emptions or deductions, or in computing the tax. The amounts of 

the deficiencies adjusted to reflect any change resulting from the foregoing appellate procedures, were assessed against the taxpayers. 

The total amount of additional taxes, including interest and penalties, found to be due from taxpayers during 1953 was $1,555,961,612. 

This amount is comprised of increases in tax resulting from mathematical verifications; assessments of tax, interest, and penalty as a result 

of delinquent returns secured; and additional tax, interest, and penalty 

assessed as a direct result of audit or investigative activity. Included 

in the latter category ;are ,duplicate assessments !against 'transferees 

and jeopardy assessments. (Jeopardy assessments permit immediate 

collection of tax deficiencies and are imposed to protect the interests 

of the Government in those instances in which there is reason to believe that the taxpayer may seek to avoid payment by disposing of 

or secreting his assets.) 

Occasionally it becomes necessary to enforce collection of additional 

taxes through distraint procedures, but, generally speaking, the 

amounts represented by additional taxes are not duplicated in distraint warrant collections shown on page 21. 

The following table shows a comparison of additional taxes for the 

fiscal years 1952 and 1953, by general classes of tax. 

1 For the fiscal year 1952, increases In tax as a result of mathematical verifications are included in the additional tax assessed as a direct result of audit. 
28 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 29 

The decrease in additional assessments was due, first, to the decrease 

in number of returns examined and, secondly, to the diminishing effect 

of the World War II excess profits tax during 1953 as compared with 

earlier years. The additional assessments of excess profits tax decreased by $45 million as compared with 1952, which accounted for 

close to 16 percent of the total decline in additional assessments. 

OVERASSESSMENTS AND OVERPAYMENTS 

The examination of returns and the consideration of taxpayers' 

claims often disclose that more tax has been assessed than is properly 

due the Government under the internal revenue laws. The determination of these overassessments often involves the settlement of 

taxpayers' claims filed under various provisions of the Internal Revenue Code, and requires the time and effort of many of the technical 

personnel of the Internal,RevenueiService. 

An overassessment of tax as finally determined may be applied as 

an abatement of a previous assessment providing the tax has not been 

paid; as a credit of amounts overpaid against other taxes due; as a 

refund of amounts overpaid if all other taxes have been satisfied; or a 

combination of these methods of settlement, as circumstances may 

require. Interest at the rate of 6 percent is allowed on all overpayments, except in cases on which interest is restricted or prohibited by 

law. 

Refunds and repayments.—The refunds and repayments made to 

taxpayers (including drawbacks and stamp redemptions), together 

with interest, totaled $3,204,663,235 for the fiscal year 1953 and were 

made from the appropriation "Refunding internal revenue collections, 1953 and prior years." 

Following is a summary of the refunds paid, showing the number 

and amounts of refunds and repayments allowed and the amounts of 

interest paid thereon, with respect to each general class of tax during 

the fiscal years 1952 and 1953. 

ts 

8 

8 

is 

5 p

o 

O 

2 

a 

O 

I I 

2 

A • .V ei m 4 • 0 
30 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Excessive prepayments of individual income tax.—During the last 

half of the fiscal year 1953 there were 30,967,962 individual income 

tax returns received by district offices of the Internal Revenue Service 

showing prepayments of 1952 income tax by the taxpayers in excess 

of their 1952 tax liabilities. By the close of the fiscal year the processing of these returns was virtually completed, with 30,032,889 overpayments totaling $2,358,132,846 scheduled for refund to the taxpayers and 741,171 amounting to $278,246,218 scheduled for credit 

agamst the succeeding year's tax or against other taxes owed. The 

following table shows for the tax years 1949-1952 the number and 

amount of prepayment refunds and credits. 

Taxable year 

, Refunds Credits 

Number Principal Interest Number Amount 

1949 28,255, 094 $1,475,432,894 $721,951 885,831 $237,105,584 19150 29,836,574 1,606,690,988 1,752,834 661,780 151,566,247 1951 29,043,194 1,903,826,861 3,522,692 590,286 179,999,253 1962 30,032,889 2,358,132,846 1,236,515 741,171 278,246, 213 

Claims for relief from excess profits tax.—Section 722 of the Internal 

Revenue Code provides that a corporation, under certain circumstances, may file an application for general relief in any case in which 

it establishes that the excess profits tax (Second Revenue Act of 1940 

and amendments) otherwise computed is excessive and discriminatory. 

In its application the corporation also must establish the fair and just 

amount representing normal earnings as a basis for computing its 

excess profits credit for purposes of section 722. 

Jurisdiction of issues arising under section 722 is vested in the 

Excess Profits Tax Council which issues interpretative rulings, 

reviews recommendations of examining officers, and holds hearings on 

nondocketed and docketed unagreed cases. It also furnishes technical 

assistance to the Office of the Chief Counsel with respect to cases set 

for trial before the Tax Court. 

The investigative and conference work of the Internal Revenue 

Service in connection with nondocketed section 722 claims is nearing 

completion. However, the remaining nondocketed case load consists 

of larger and more complicated claims which require extensive research 

in the field of economics, statistics, and related subjects. As the nondocketed case load has decreased, the Council's activities have 

emphasized the processing and disposition of docketed claims. The 

following summary shows additional information with respect to 

claims received and acted upon during the period July 1, 1941, to 

June 30, 1953, and also shows the status of claims pending June 30, 

1953. 

REPORT ON OPERATIONS 31 

Item Number 

Excess profits tax reduction 

Increasein 

Income tax 

Claimed : Allowed 

Net receipts (excluding transfers and reopened cases) KM V% 530,234,83e 

Disposals: 

Allowed In whole or in part 16.899 1,583.325,381 1945,704,916 $184,320,579 

Disallowed 19,793 1,769,828.621 

Withdravm 10,868 902,553,559 

Eliminatede 8,600 29,915,018 

Total disposals 51,150 4,226,622,679 445, 704, 916 184,320,579 

On hand June 30, 1953: 

as RgRH 

In district directors' offices: 

Awaiting investigation 

Under Investigation 16.909,917 

Investigated, awaiting field conferences, etc_. 83,363,805 

In Excess Profits Tax Council: s 

Awaiting decision. 261,406,172 

Awaiting review 146,658,936 

Unsigned, statutory notice outstanding or to be 

issued 1,082,045,330 

Before the Tax Court 606.707,285 

In process of closing 147, 561, 360 

Total pending 3,515 2,244,632,255 

3Amount of tax reduction claimed does not take into account tax adjustments made subsequent to the 

Ming of relief applications. 

I Consists of applications eliminated from further consideration upon agents' finding that no tax liability 

existed. 

3 Based on regional office reports. Includes eases in transit. 

Tentative adjustments.—Section 3780 of the Internal Revenue Code 

provides that a taxpayer may file an application for a tentative carryback adjustment of the income and profits taxes for preceding taxable 

years affected by a net operating loss carryback or an unused excess 

profits credit carryback from any taxable year ending on or after 

September 30, 1945. Within a period of 90 days from the date on 

which a tentative carryback application is filed, the Internal Revenue 

Service is required to make a limited examination of the application 

(subject to complete audit at a later date) and, if it is found acceptable, to determine the amount of increase or decrease in tax attributable 

to the carryback, assess any resulting deficiencies, and schedule for 

abatement, credit, or refund any resulting overassessment. 

A comparison of work done on applications for tentative carryback 

adjustments for fiscal years 1952 and 1953 is shown in the following 

table: 

Status Number Amount Amount 

allowed 

FISCAL 98AR 1962 1 4

IMES 

dgr:4 Pending at beginning $5, 221,593 

Applications received. 185,5439,959 

Applications adjusted, total 

Allowed in whole 

95,107.405 

85,994,771 

$89,922,511 

85,545,222 

Allowed in part 6,534,690 9,377,289 

Rejected 4,127,994 

Pending at end 4,672 38,654,097 

TISCIL 98A8 1958 

Pending at beginning 9,672 38,654,097 

Applications received 37.483 383, 215,126 

Applications adjusted, total 35,627 359,802,705 343,968,116 

Allowed in whole 31, 763 337,087, 705 337,623,364 

Allowed in part 1,394 7,961,984 6,344, 752 

Rejected 2,480 9,753, 516 

Pending at end 6,528 67,066,518 

Revised. 
32 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Section 22(d)(6) of the Internal Revenue Code affords taxpayers 

using the elective inventory method, commonly referred to as the 

last-In-first-out or LIFO inventory method, a measure of relief from 

the consequences of the involuntary liquidation of goods inventoried 

by the LIFO method attributable wholly to war conditions beyond 

the control of the taxpayer. 

Applications for tentative LIFO adjustments received during the 

fiscal year 1953 numbered 15, with net tax reduction sought in the 

amount of $34,311,918. Action was not completed on any of these 

cases by June 30, 1953, since the applications were not received until 

the latter part of the fiscal year. 

Other claims.—In addition to the two types of claims described in 

the foregoing paragraphs, all other claims, involving all classes of tax 

which were processed by the Internal Revenue Service in fiscal year 

1953, numbered 452,934. 

Included in this total were taxpayers' claims Form 843 for adjustment of tax (including amended returns showing a reduction in tax 

which are treated as Form 843 claims); claims for special refund 

under section 1401(a) of the Federal Insurance Contributions Act; 

claims for redemption of tobacco and liquor stamps; and claims for 

drawback of tax on distilled spirits used in nonbeverage products. 

Disposition of these claims by class of tax for fiscal years 1952 and 

1953 is shown in the table which follows: 

Class of tax 

Number of claims disposed of 

Fiscal year 

1952 

Fiscal year 

1953 

Corporation income and profits taxes 

Individual income taxes 

Income tax withheld and old-age Insurance 

Unemployment insurance 

Railroad retirement taxes 

Estate and gift taxes 

Tobacco taxes 

Alcohol taxes 

Other taxes 

Total 

32,451 

266,350 

103,533 

16,818 

73 

1,049 

1,742 

16,917 

10,107 

25,853 

324,456 

51,174 

15,108 

118 

1,189 

1,862 

21,753 

11,421 

508,040 462,934 

Review of overassessments exceeding $200,000.—In cases where the 

net amount of the tax reduction exceeds $200,000, the allowance is 

reviewed by the Chief Counsel's office. These cases include overassessments of income, excess profits, estate, gift, and miscellaneous 

taxes proposed for allowance; allowances already made of tentative 

amortization and carryback adjustments of income and excess profits 

taxes; and interim refunds allowed to taxpayers entitled to the 

benefits of section 22(d)(6) of the Internal Revenue Code. Any 

deficiencies coupled with such tax reductions under review are likewise subject to review. 

A report is prepared for the Joint Committee on Internal Revenue 

Taxation as required by section 3777 of the Internal Revenue Code 

in every case where the net overpayments of income, excess profits, 

estate, or gift taxes exceed $200,000. During 1953, there were reported to the Joint Committee on Internal Revenue Taxation 179 

cases involving total overassessments in the amount of $352,376,673. 

REPORT ON OPERATIONS 33 

OFFERS IN COMPROMISE 

The authority for compromising civil and criminal liabilities is 

found in section 3761 of the Internal Revenue Code. Under the 

provisions of this section the Commissioner, with the approval of 

the Secretary of the Treasury or of the Under Secretary of the Treasury, 

or of an Assistant Secretary of the Treasury, may compromise for a 

lesser amount liabilities in any civil or criminal case arising under the 

internal revenue laws, before it is referred to the Department of 

Justice for prosecution or defense. On June 1, 1953, the Secretary of 

the Treasury delegated to the Commissioner the authority to approve 

all compromise cases and also delegated the functions of the General 

Counsel under section 3761(b) of the Internal Revenue Code in cases 

involving liabilities under $500. On June 10, 1953, new jurisdictional 

lines and revised procedures were prescribed for the processing, investigation, and disposition of offers in compromise except cases 

coming within the jurisdiction of the Chief Counsel and those relating to alcohol, tobacco, firearms, narcotics, smoking opium, and 

marihuana taxes. Effective July 1, 1953, the authority was delegated to district directors to reject any offer in compromise coming 

under their processing jurisdiction, irrespective of the amount of the 

liability, including cases invoking specific penalties, and to accept 

finally certain offers in compromise involving liabilities less than $500. 

Also transferred to the district directors were substantially all of 

the compromise functions of the Assistant Regional Commissioners, 

Appellate, plus a substantial portion of the functions previously 

performed in the Collection and Audit Divisions of the National 

Office and the Office of the Chief Counsel. Offers in compromise 

involving tax, ad valorem penalties, and interest of $500 or more, as 

well as specific penalties recommended for accentance by the district 

director, must be forwarded to the national office for review and for 

approval by the Commissioner. A study is in progress looking 

towards the improvement of procedures for handling alcohol, tobacco, 

firearms, narcotics, smoking opium, and marihuana taxes. 

An offer in compromise of taxes, interest, ad valorem and specific 

penalties may be based on either inability to pay or doubt as to 

liability. Offers in, compromise arise, usually, when payments of 

assessed liabilities are demanded, ad valorem penalties for delinquency 

in filing returns are asserted, or specific civil or criminal penalties are 

incurred by taxpayers. An offer in compromise of criminal liability 

will not be considered, unless it involves only the regulatory provisions of the Internal Revenue Code and related statutes. However, 

if the violations involving the regulatory provisions are deliberate 

and with intent to defraud, the criminal liabilities will not be 

compromised. 

In compromising a civil liability, mutual concessions are essential 

to a valid compromise agreement. Where the liability is undisputed, 

or has been established by a valid judgment and there is no doubt 

as to the ability of the Government to collect, there is no room for 

mutual concessions, and therefore no basis for a compromise. In 

cases where there is a bona fide dispute as to either a question of fact 

or of law with respect to liability for or collection of taxes, interest 

and/or penalty, there is room for mutual concession. The adequacy 
34 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

of the concession or consideration sufficient to justify.the acceptance 

of an offer in compromise is determined by the exercise of sound discretion, following a thorough analysis and evaluation of all facts and 

circumstances applicable to each case. liabilities may not be adjusted or settled by compromise solely because a hardship case is 

presented which arouses sympathy or is merely appealing from the 

standpoint of equity. 

All offers in compromise are filed with or forwarded to the offices 

of the district directors of internal revenue. The offers based on 

inability to pay or the merits of the tax liability are investigated by 

internal revenue agents attached to the offices of the district directors. 

The reports of the investigations are forwarded to the offices having 

jurisdiction over the processing of the offers which, under the new procedure, effective July 1, 1953, will be the audit division of the offices 

of the district directors for substantially all of the offers filed on and 

after July 1, 1953. Under the procedure effective prior to July 1, 1953, 

offers were processed by the offices of the district director, the Assistant Regional Commissioner, Appellate, the Chief Counsel, the 

Alcohol and Tobacco Tax Division of the National Office and the 

Audit Division of the National Office. All offers recommended for 

acceptance were forwarded to the Appellate Division of the National 

Office for review prior to forwarding the cases to the office of the 

Chief Counsel for further review and the issuance of the legal opinion 

required under section 3761(b) of the Internal Revenue Code. After 

the legal opinion was issued, the case was forwarded to the Commissioner and to the Secretary of the Treasury for approval. Offers 

filed prior to July 1, 1953, will continue to be disposed of under the 

procedure in effect prior to such date. 

Under the new procedure effective July 1, 1953, substantially all 

offers will be processed by the district directors. As previously explained, offers involving liabilities of $500 or more, and specific 

penalties which are recommended for acceptance will be forwarded 

to a Compromise Branch to be established in the Audit Division of 

the National Office for review, prior to forwarding to the Office of the 

Chief Counsel for the legal opinion, and then to the Commissioner 

for approval. 

Offers relating to violations of regulatory provisions of the Internal 

Revenue Code with respect to narcotics, smoking opium, and marihuana laws (except as relates to delinquency in registration and 

delinquency in payment of tax) are transmitted to the Commissioner 

of Narcotics for acceptance or rejection. After the case is closed 

by the Bureau of Narcotics, copies of the letters of acceptance or 

rejection are forwarded to the Internal Revenue Service and appropriate schedules are prepared and forwarded to the district directors 

of internal revenue for adjustment and final processing. Dual liability cases, involving both civil and criminal features of the narcotics, 

smoking opium, and marihuana laws, are closed by joint action of 

the Commissioner of Narcotics and the Commissioner of Internal 

Revenue. 

The Chief Counsel's office considers all cases involving the interpretation of a legal question and all cases in 'which suit has been 

recommended or criminal prosecution is pending. 

REPORT ON OPERATIONS 35 

In addition to the approval of new jurisdictional lines and revised 

procedures for offers in compromise filed on and after July 1, 1953, 

the plan for consolidating all compromise review and coordinating 

functions was practically completed during the fiscal year 1953. 

The plan was approved shortly after the end of the fiscal year and 

provided for the consolidation of such activities in the Compromise 

Branch in the Audit Division of the National Office. 

The following table shows offers in compromise processed during 

the fiscal year ended June 30, 1953. 

Type of tax or penalty Number 

received Accepted 

Rejected 

ana withdrawn 

Total 

 closed 

Income, profits, estate and gift taxes 

Excise taxes 

Employment and withholding taxes 

Alcohol taxes 

Specific and delinquency penalties on all taxes 

Totals 

4, 276 

652 

E 252 

285 

27,997 

1, 699 

160 

1,031 

159 

26, 486 

3,028 

185 

782 

103 

1,230 

4 727 

845 

1, 813 

262 

27, 716 

35,462 29,535 5,828 34,863 

RULINGS, LEGISLATIVE, AND OTHER TECHNICAL FUNCTIONS 

The work of the national office in the technical tax area was reorganized during the fiscal year 1953 by placing under the Assistant 

Commissioner (Technical) direct responsibility for, and supervision 

of, the technical program of the national office. This provided for 

the first time the centering of responsibility in one office of all functions 

of the national office concerned with rulings, regulations, and other 

technical service, regardless of the type of tax involved (except in the 

alcohol and tobacco tax areas). 

The national office furnishes technical assistance to the Treasury 

Department in the development of the Treasury program with respect 

to internal revenue laws. Skilled technicians are furnished to analyze 

the effect and administration of existing tax laws, and the administrative and technical problems involved in any proposed legislation 

under consideration by the Department for recommendation to the 

Congress. These technicians also direct attention to other procedures and related provisions of the Internal Revenue Code which 

would be affected by the proposed legislation. 

Another aspect of the services rendered by the national office in 

connection with legislation includes the preparation of reports setting 

forth the views of the Internal Revenue Service with respect to bills, 

both public and private, concerning internal revenue matters. When 

a committee of Congress requests views of the Treasury Department 

on a bill which has been introduced, the Department frequently refers 

the request to the Internal Revenue Service for its views and comments. In the case of a public bill, the technical organization studies the 

bill with a view to determining the technical and administrative problems which may be involved and prepares a report to the Under 

Secretary of the Treasury setting forth the views and comments of 

the Service with respect to the bill. The comments include a discussion of the problems involved. Occasionally, where a public bill 

does not deal with policy matters but affects only the administration of the internal revenue laws, the Service prepares the formal 
36 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

report of the Department for the use of the Secretary of the Treasury. 

In the case of private bills, the report to the Under Secretary is 

primarily a statement of the relevant facts of the particular case for 

which such bill would grant relief. After a bill has passed both 

Houses of Congress and is forwarded for the signature of the President, the Bureau of the Budget may request the Department for its 

views on the bill and, if the matter is referred to the Internal Revenue 

Service, the technical organization studies the bill and prep axes an 

appropriate report for the use of the Secretary or an appropriate 

report to the Under Secretary. During this fiscal year, over 125 

reports were prepared on bills under consideration by committees of 

Congress. 

After the enactment of an internal revenue law the national office 

interprets its provisions. This interpretation consists primarily of 

the preparation of regulations and the issuance of rulings based upon 

specific fact situations. 

The regulations prepared are submitted for approval and for 

publication in tentative form, in accordance with the Administrative 

Procedure Act (Public Law 404, 79th Cong. (1946), approved June 

11, 1946). Following publication in tentative form all data, views, 

and arguments with respect to the proposed regulations, which are 

timely submitted by interested persons, are carefully considered prior 

to the preparation of such regulations in final form. Regulations work 

affecting all taxes (other than alcohol and tobacco) was brought 

under centralized control and the backlog of unissued regulations to 

conform to recent tax laws has been greatly reduced. The regulations 

have been brought to a practically current state by issuance during 

the fiscal year of 98 Treasury Decisions. In connection with the 

issuance of notices of rule making (proposed regulations) 68 public 

hearings were held with taxpayers and interested persons to obtain 

their views and comments. 

During the fiscal year, arrangements were completed with the 

Division of the Federal Register for the inclusion in new editions of the 

Code of Federal Regulations of the statutory provisions which are 

included in the Department's regulations, and for the use of the 

services and facilities of the Federal Register in the publication of 

new editions of internal revenue regulations. Under these arrangements, the issuance of new regulations and revisions thereof will be 

accomplished with considerable saving of time and expense in obtaining copies for general use. As a further aid in the use of regulations 

it was decided to have the regulations prepared in accordance with 

the style prescribed for the Code of Federal Regulations. 

After the regulations are prepared, adopted, and promulgated in 

final form, the national office continues its interpretative functions 

by issuing, upon request, rulings under the law and regulations as 

applied to specific fact situations. In administering the law and the 

regulations, a considerable volume of such rulings normally result. 

It is impractical in this report to furnish any realistic concept of the 

nature and variety of the subject matter of the rulings issued by the 

Internal Revenue Service, although some idea of their volume can be 

given. Rulings work affecting all taxes (other than alcohol and 

tobacco) was brought under centralized control and during the fiscal 

year 1953 there were 60,138 rulings and advisory opinions issued to 

REPORT ON OPERATIONS 37 

taxpayers and to district directors' offices of the Internal Revenue 

Service. This total does not include rulings issued with respect to 

alcohol tax, tobacco tax and the opinions issued by the Chief Counsel 

of the Internal Revenue Service. The number of rulings referred to 

above represent generally the more complex rulings. In many cases, 

additional correspondence is necessary to develop the factual situations involved, to clarify doubtful issues, and to resolve differences 

of opinion and interpretation. In many cases, too, for the same 

purposes, conferences are held with taxpayers or their counsel prior to 

issuance of the ruling. There were 10,518 such conferences during 

the fiscal year. 

A survey during the fiscal year disclosed that the period of time 

required to process requests for rulings in the several branches varied 

from 18 to 71 days. To speed up service on rulings requests, authority 

was delegated to branch chiefs and division directors to take final 

action on matters within their jurisdiction. In addition, overtime 

work was authorized for the month of June 1953 to reduce the backlog 

of pending requests for rulings and to increase the rate of processing 

these requests. In contrast with the average of approximately 4,700 

ruling requests which were processed during the preceding 5 months, 

there were over 5,800 requests processed during June 1953. 

The technical phases of tax forms work affecting all taxes (other 

than alcohol and tobacco) were brought under the control of one division and during the fiscal year more than 115 tax forms were reviewed 

or revised. Among these was a new quarterly excise tax return (Form 

720) which was issued to replace 8 former monthly excise tax returns. 

The foreign tax treaty program, formerly under a Special Deputy 

Commissioner, was incorporated into the technical program as the 

International Tax Relations Division, under the Assistant Commissioner (Technical) during the fiscal year. An account of the major 

developments in that area, appears on page 48. 

The technical program also includes the preparation and publication of the Internal Revenue Bulletin in which is published, among 

other things, precedent rulings of the Internal Revenue Service and 

Treasury Decisions. A program of increased publication of rulings in 

the Internal Revenue Bulletin was instituted effective with Bulletin 

No. 1 for 1953. The first phase of this program, as announced in 

Revenue Ruling 2 (C. B. 1953-1, 484), related to increased publication 

of rulings to the district offices on matters involving substantive tax 

law and procedures affecting taxpayers' rights. Other important 

aspects of this program are the issuance to regional and district offices 

of index-digest cards on all published rulings and the use of the single 

designation Revenue Ruling for the former titles of I. T., E. T., S. T., 

G. C. M., etc., for published rulings. Since the institution of this 

program (January—June 1953) 128 revenue rulings were published, 

which is one and one-half times the average number published annually 

in recent years. This program is now being further expanded. 

Major developments during the fiscal year 1953 with respect to 

procedures involving rulings, legislative, and other technical functions 

are discussed on page 56. Important rulings or regulations issued 

during the year include the following: 

New instructions were issued permitting persons enrolled to practice before the Treasury Department to request extensions of time 
38 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

for filing income tax returns of corporations represented by them, 

without the necessity of obtaining and filing formal powers of attorney. 

A new form, Form 7004, was also provided as a simplified form to be 

filed, in lieu of a tentative corporation return, on or before the due 

date where an extension of time was granted for filing the corporation 

return at a later date. This announcement was published as Revenue 

Ruling 22 (C. B. 1953-1, 84). 

A compilation of rules for qualification of stock bonus, pension, 

profit-sharing, and annuity plans under section 165 of the Code was 

issued as Revenue Ruling 33 (C. B. 1953-1, 267). This clarified the 

rules which have been developed and incorporated various individual 

releases. 

A new statement of policy with respect to adjusting depreciation 

deductions was issued May 12, 1953. It shall be the policy of the 

Service generally not to disturb depreciation deductions, unless there 

is a clear and convincing basis for a change. Since the determination 

of the amount of the deduction for depreciation is largely a matter 

about which there may be reasonable differences of informed judgment, and inasmuch as the impact on the revenue resulting from these 

differences may be negligible over the years involved, this new policy 

is to be applied for the principal purpose of reducing controversies 

with respect to depreciation. This announcement was published as 

Revenue Ruling 90 (C. B. 1953-1, 43). 

In response to numerous requests by livestock raisers that they be 

permitted to change their method of accounting from the accrual 

method to the cash receipts and disbursements method, for income tax 

purposes, the Internal Revenue Service is now processing such requests. 

This revision in prior practice was announced in a release dated May 

12, 1953, and livestock raisers, following the rules generally applicable 

to requests to change an accounting method, may now change over to 

a cash receipts and disbursements method in order to obtain full advantage of the provisions of section 117(j) of the Code. Permission 

to change will not be granted unless the Revenue Service and the 

taxpayer have complete agreement as to the terms and conditions 

under which the change will be effected. 

Regulations implementing the provisions for the nonrecognition of 

gain, in the case of the sale of a personal residence by a taxpayer 

where he reinvests the proceeds in a new residence, were issued as 

T. D. 5991 (C. B. 1953-1, 146). 

Among other new and important regulations issued was T. D. 5928 i 

providing rules for taxation of the unrelated business income of otherwise exempt organizations (T. D. 5928 C. B. 1952-2, 181). This 

amended Regulations 111 to conform to pertinentportions of the 

Revenue Act of 1950, the Excess Profits Tax Act of 1950,. and the 

Revenue Act of 1951, which introduced new statutory provisions for 

taxing business income of certain tax-exempt organizations for taxable 

years beginning after December 31, 1950. 

Regulations were issued implementing the statute which for the 

first time imposed tax on previously exempt cooperatives for taxable 

years beginning after December 31, 1951 (T. D. 6014, C. B. 1953-1, 

110). Definitions are given as to what constitutes patronage dividends, rebates, refund, and other terms not included in the law (sec. 

314, Revenue Act of 1951). 

REPORT ON OPERATIONS 39 

INSPECTION ACTIVITIES 

The functions of the Office of Inspection are the independent review 

and appraisal of the policies, practices and procedures of the Internal 

Revenue Service by means of frequent internal audits, and the 

maintenance of high standards of conduct by all personnel through 

character and misconduct investigations, with the objective of 

creating a more effective Internal Revenue Service. Inspection 

functions were taken over in the early part of 1952 and by June 30, 

1952, there were 264 employees assigned to inspection activities. By 

June 30, 1953, this number had been increased to 566 employees. 

Organization of the Office of Inspection was adjusted to conform to 

Reorganization Plan No. 1 of 1952 with the establishment of district 

chief inspectors' offices operating under the immediate direction of 

the Assistant Commissioner (Inspection). The fiscal year 1953 was 

the first full year of operation of the Office of Inspection and has been 

characterized largely by organizational development. 

Internal audit activities.—One of the principal inspection functions 

is the independent review and appraisal of the operations of all offices—

national, regional, and district—of the Internal Revenue Service. 

This is accomplished through internal audits of the offices for the 

purpose of ascertaining the effectiveness of their organizational 

structure; the efficiency, of their operating procedures, methods and 

systems; the conduct of all fiscal and tax accounting aspects of the 

offices with particular reference to the examination of all tax revenue 

accounts maintained; and to the conduct of all other matters concerned with the administrative and operational management of the 

offices. There were 597 examinations completed during the fiscal 

year 1953 and 60 in process as of June 30, 1953. The above total 

includes (1) "regular" examinations which are complete investigations 

of headquarters offices together with their branch offices, (2) "interim," 

or partial examinations of branch offices, and (3) "transfers," examinations when a new official is designated to take charge of an internal 

revenue office. Personnel of the chief inspectors' offices spent 31,994 

man-days making these examinations and preparing their reports. 

Investigative activities.—Investigation of applicants for positions 

with the Internal Revenue Service is a responsibility of inspection. 

During the fiscal year, 1,116 applicant character investigations were 

closed. Of this number, 942 reports were favorable, 64 were unfavorable, 88 were discontinued and 22 were preliminary investigations 

made for the Treasury Department and the Internal Revenue Service. 

There were 518 character investigations pending as of June 30, 1953. 

Personnel of the chief inspectors' offices spent 8,139 man-days on 

applicant character investigations. 

Reports of alleged misconduct or irregularities on the part of internal 

revenue employees are thoroughly and impartially investigated. 

Among the more serious charges against employees are embezzlement, 

improper relations with taxpayers, or matters of personal conduct not 

involving tax matters or dishonesty. During the fiscal year 1953 

there were 1,089 charges of misconduct or irregularities disposed of 

after investigation. Of this number, 728 cases were closed without 

disciplinary action being recommended. In the remaining 361 cases, 

separation from the Internal Revenue Service was effected in 152 

281223-54-4 
40 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

cases. A more detailed summary of disciplinary actions taken against 

employees is presented in the "Personnel Summary" section of this 

report, pages 44-45. Personnel of the chief inspectors' offices spent 

15,353 man-days in the investigation of alleged misconduct or irregularities on the part of internal revenue employees. 

Other aetivities.—During. 1953 inspection personnel cooperated with 

district directors in increasing and improving the facilities for assisting 

taxpayers. Inspection personnel also assisted in keeping the National 

Office informed on the working details of reorganization of district 

offices, including unusual changes in operating procedures and 

instances where offices failed to follow prescribed reorganization 

procedure. 

As of July 1, 1953, the requirement that directors' claims for abatement of uncollectible taxes be reviewed by inspection prior to approval 

was revoked and the directors were given authority to make such 

abatements. Inspection will continue to review these abatement 

claims as well as the procedures and the controls established for 

processing them on a post-audit basis. 

The Office of Inspection Procedural Manual is being revised to improve audit procedures and to bring them into conformity with changes 

in the organizational structure of the Internal Revenue Service. Every 

effort is being made to improve the contents and quality of examination reports and to insure uniformity in the examinations, with the 

manual being used as one means of reaching this goal. 

A comprehensive training program for inspectors has been established which includes (1) attendance at schools of instruction in 

Washington and (2) a rotation program whereby inspectors are 

detailed to the national office to participate in its activity. In 

addition to the above, inspection personnel are assigned to make 

examinations of offices other than in their own district or region in 

order to broaden their knowledge and experience. Several schools 

of instruction were conducted in the fiscal year 1953 with a total 

attendance of 240 inspectors. 

ENROLLMENT OF PRACTITIONERS 

The Office of the Director of Practice was established in the Internal 

Revenue Service, on January 9, 1953, by order of the Secretary of the 

Treasury to take over the functions relating to the enrollment and 

disbarment of practitioners before the Treasury Department (except 

customhouse brokers) formerly performed by the Treasury Department's Committee on Practice and the Attorney for the Government. 

The work of the director of practice is under the supervision of the 

Commissioner of Internal Revenue. However, decisions of the director 

in individual cases relating to enrollment, disbarment, or disciplinary measures will not be subject to change by the Commissioner, 

but may be appealed to the Secretary of the Treasury. 

During the year the enrollment and disbarment procedures were 

substantially revised and strengthened. New instructions were issued 

for the investigation of applicants for enrollment and of charges against 

enrollees, and a procedure was developed for the accumulation and 

evaluation of information concerning applicants and prospective 

applicants which is expected to prevent the enrollment of unworthy 

persons. 

REPORT ON. OPERATIONS 41 

The results of the work of the office during 1953 as regards enrollment 

applications and cases involving charges against enrollees is set forth 

below: 

Report for 1953 

General enrollment—attorneys and agents: Number 

Applications for enrollment approved 6, 817 

Applications for enrollment disapproved 44 

Applications withdrawn on advice of the director 202 

Applications withdrawn with prejudice 3 

Applications abandoned 10 

Special enrollment to practice before the Internal Revenue Service: 

Applications approved by reason of examination 7 

Applications approved pursuant to standards and procedures based 

upon former service with the Treasury Department. (Section 12, 

Department Circular No. 230, Revised.) 125 

Applications of former employees denied 15 

Applications withdrawn 48 

Applications abandoned 60 

Disbarment cases: 

Formal complaints pending against enrolled persons 29 

Resignations accepted 6 

Resignation accepted with prejudice 1 

Reprimands issued 10 

Renewal of enrollment cases: 

Applications for renewal approved 1, 976 

Applications for renewal disapproved 13 

Applications for renewal withdrawn 8 

ADMINISTRATION 

Reorganization of headquarters offices.—Various management improvement studies and surveys during the last several years made it 

increasingly apparent that the Revenue Service orgamzation at all 

levels had to be strengthened and modernized if the many steps taken 

and proposed to improve management were to be successful. 

When the national office I was reorganized on August 11, 1952, it 

was recognized that the responsibility for administrative management 

is basically in the Office of the Commissioner. Therefore, a position 

of Administrative Assistant to the Commissioner was established 

reporting directly to the Commissioner. This officer was given 

responsibility at the national office level for all policy, programming, 

direction, management, and coordination for the Commissioner of the 

vitally important programs relating to personnel, budget and fiscal, 

training, statistical services, and administrative services such as space, 

supplies, equipment, printing and binding, etc. 

Positions of Assistant District Commissioner (Administration) 2 

 with like responsibilities were established in each district office.' 

Strong Administrative Divisions were also established in each of the 

64 district directors' offices, and staffed by specialists in the field of 

administration. Thus, the foundation was laid for an improved 

administrative organization and program which formerly had been 

largely a dispersed responsibility among operating program managers. 

I Formerly known as "Bureau Headquarters," redesignated National Office by Commissioner's Reorganization Order No. 17, dated July 7, 1953. 

Redesignated Assistant Regional Commissioner (Administration) by Commissioner's Reorganization 

O' 

 Order No. 15, dated July 1, 1963. 

Redesignated Regional °Moe by commissioner's Reorganization Order No. 17, dated July 17, 1963. 
1952 1953 

Quantity Cost Quantity Cost 

Class of work 

Tax return forms 

Instructions for tax returns 

Administrative forms 

Reports, regulations, etc 

Letterheads, miscellaneous binding, etc 

Reproductions 

Total 

786,200,290 

68,426,100 

362,767,326 

1,913, 585 

97,626,077 

9,510,100 

1,318,443,478 

$2, 213, 534 

411,604 

1,034, 819 

185,274 

224,060 

44, 871 

4,114,162 

776, 835, 380 

25, 336,545 

243,380,908 

778,997 

42, 023,556 

13,262,955 

1,101,608, 341 

42,461,711 

151,046 

768,490 

251,994 

118,694 

48,311 

3,798,246 

42 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

On April 10, 1953, executive direction and administrative management were further strengthened by establishing in the Office of the 

Commissioner a Deputy Commissioner and a Staff, comprised of an 

Assistant Commissioner (Administration) and an Assistant Commissioner (Planning) in addition to the Assistant Commissioners for 

Operations, Technical, and Inspection. The positions of Administrative Assistant to the Commissioner and Assistant to the Commissioner 

were abolished. Functional alignments and distribution of responsibility were improved by transferring to the Assistant Commissioner 

(Administration) responsibility and authority for (1) the servicewide 

management improvement program, (2) certain operational aspects 

of budget and fiscal management, (3) standards governing organizational structure and staffing, (4) public relations, and (5) internal 

management documents. 

In addition, the reporting line for regional commissioners was shifted 

to the Deputy Commissioner thus permitting the Assistant Commissioner (Operations) to concentrate on coordinating, programming 

and evaluating work in the various tax collection and enforcement 

functions for which he is responsible. This change also established 

a direct functional relationship between the office of the Assistant 

Commissioner (Administration) and the assistant regional commissioners (administration). In June 1953 the Assistant Commissioner 

(Administration) met with all assistant regional commissioners 

(administration) and outlined program objectives and standards of 

performance which the regions will be expected to attain in 1954. 

Because the statistical information compiled regarding the operation of the tax laws is primarily a tool for tax research and planning, 

the statistical function was transferred from the Assistant Commissioner (Administration) to the Assistant Commissioner (Planning). 

Cost of administration.—The amount appropriated for administrative expenses of the Internal Revenue Service for the fiscal year 

1953 was $270,000,000, of which $268,590,806 was obligated, leaving 

an unobligated balance of $1,409,194. Obligations for the year were 

$3,281,386 less than the amount obligated in 1952. (The cost of 

collecting $69,686,535,389 during the fiscal year 1953 was $0.385 per 

$100, as compared with $0.418 per $100 for collecting $65,009,585,560 

in 1952. 

Data on the annual cost of administration, although of interest and 

value for certain purposes, cannot be relied upon either as a guide to 

the proper scale of administrative activity or as a measure of relative 

efficiency of operation from year to year. An annual ratio of cost 

to collections is determined by many factors, most of which have no 

relationship to these objectives. To illustrate, the higher the level 

of tax rates and the more numerous the levies that are inherently 

economical to collect, the lower will be the average cost ratio. The 

prevailing level of salaries paid to internal revenue personnel and 

the volume of essential services performed for taxpayers are other 

examples of these determinative factors. 

REPORT ON OPERATIONS 43 

The following table shows obligations of the 1953 appropriation by 

class of expenditure. 

Type of obligation National easel Regional and 

district offices Total 

Salaries 

Travel expenses 

Other 

Total 

$25,182,553 

723,926 

9,646,605 

$218,978,850 

5,404,048 

8,654,824 

$244,161,403 

6,127,974 

18,301,429 

35,553,084 233,037,722 268,590,806 

1 Includes certain operations performed outside of Washington, D. C. but under direct supervision of 

National Office, such as the Inspection Service, Processing Division, and Excess Profits Tax Council. 

The cost of printing and binding for 1953 totaled $3,798,246, of 

which $2,461,711 was spent in printing 776,800,000 tax return forms. 

The following table shows the cost of printing and binding for the 

fiscal years 1952 and 1953: 

Rewards to informers.—Under section 3463 of the Revised Statutes 

and section 3792 of the Internal Revenue Code, persons supplying 

information to the Internal Revenue Service relative to violation of 

the internal revenue laws may submit claims for reward. The processing of such claims more than doubled during the fiscal year. The 

program was geared to keep a steady flow of reports and material 

from district offices for final processing in Washington of as many 

cases as possible within the annual allotment of $500,000. There 

has been an increasing number of reward claims filed and larger tax 

recoveries have been effected on the basis of informers' information. 

Shortly before the end of June 1953, an additional allotment of 

$150,000 was obtained. 

Under changes brought about by the reorganization of the national 

office, the function of processing claims for reward was transferred 

from the Audit Service Branch of the Audit Division in Washington 

to the several district directors of internal revenue, effective June 12, 

1953. During the fiscal year, there were received in the national 

office 2,691 of these informers' claims. The claims pending at the 

end of the year are awaiting the final closing of the tax cases to which 

they relate, or processing in district directors' offices. A table showing 

the receipt and disposition of claims for informers' rewards during the 

fiscal years 1952 and 1953 follows: 
44 REPORT OF CONINUNMONER OF INTERNAL REVENUE 

Status 

Fiscal year 

1952 1953 

Pending, beginning of period 5,388 5, 975 

Received L 849 2, 

Dispositions, total I, 262 k 906 

'Selected 1,043 2,297 

Allowed: 

Number 219 609 

Amount $499,995 $649,999 

Pending, end of year 5, 975 5, 760 

PERSONNEL 

During the fiscal year ending June 30, 1953, the number of employees on the rolls of the Internal Revenue Service averaged 54,305. 

Appointments to the Service numbered 6,431, while separations 

totaled 8,389. Included in the separations are 45 military furloughs, 

776 retirements, of which 118 were due to disability, and 216 separations for disciplinary reasons. 

The average number of employees in the national office and in the 

regional and district offices of the Internal Revenue Service during 

the fiscal years 1952 and 1953 is shown in the following table by 

type of personnel. 

Type of personnel 

Average number on roll 

1952 1953 

National office. 

Regional and district offices: 

Collection officers 

Office auditors 

Returns examiners 

Internal revenue agents 

Excise tax agents 

Special agents (tax fraud) 

Alcohol tax inspectors 

Alcohol tax investigators 

Storekeeper-gaugers 

Supervisory 

Total enforcement personnel 

IOther technical 

Stenographers and typists 

Clerical (excluding temporary) 

Messengers and laborers 

Temporary employees 

Total, regional and district offices 

Grand total 

3, 953 3, 866 

10,485 

3,361 

873 

7,899 

74 

1,206 

542 

853 

1, 495 

340 

9,712 

3, 224 

996 

7,546 

75 

1,147 

578 

895 

1,337 

440 

27,128 25, 895 

220 

2,268 

6, 732 

14,988 

180 

840 

253 

2,162 

6, 596 

14, 231 

183 

60 

52, 356 50,439 

56,309 54,306 

Disciplinary actions against employees.—In the cases of 361 employees for whom some action was recommended or effected after 

investigation of alleged misconduct or irregularity, there were 152 

separated from the Service, 19 suspended from pay status for varying 

periods, 5 demoted, 13 reassigned to different duties or areas, and 

172 officially reprimanded. 

REPORT ON OPERATIONS 45 

Separations during each of the fiscal years 1951-53 resulting 

from investigations, including resignations and retirements while 

employees were under investigation, are shown in the following table 

by reason for action. 

Reason 

Fiscal year 

1951 1952 1953 

Acceptance of gratuities, bribes, etc 19 53 16 

Embezzlement involving United States Government funds and property 10 24 6 

Failure of employee to pay proper tax 3 21 1 n 

Falsification or distortion of Government reports, records, etc 4 5 41 

Unauthorized outside activity 1 15 12 

Failure to properly discharge duties 1 7 8 

Personal misconduct unrelated to tax cases 29 95 89 

Refusal to cooperate In an official investigation 2 

Divulgence of confidential Information 1 3 

Failure to file financial statements 2 

Total number 62 174 152 

I Includes one removed and subsequently restored to duty. 

NOTE.—No distribution by class of employee is shown for the reason that, due to reorganization, many 

class designations have changed during the year. Therefore, any distribution by class of employee would 

not be comparable with earlier periods. 

Regional personnel offices established.—The establishment of personnel offices in the offices of regional commissioners and district directors 

provided a mechanism with which to deliver a practical and progressive personnel program to employees at the regional and district 

levels. 

Approximately 48,000 official personnel folders formerly maintained 

in the national office were sent to regional commissioners and district 

directors, resulting in the elimination of duplicate personnel folders 

and other related records. Increased delegations of authority on 

personnel actions were given to regional commissioners and district 

directors. For the first time, position classification authority was 

extended to the field and the classification program there was accelerated. Qualifications standards covering education and experience 

requirements were established for new positions created by the reorganization and for positions where the duties were changed by realignment of functions. The Service for the first time participated in the 

Civil Service Commission's Junior Administrative Interne and Career 

Development Programs 

LEGAL FUNCTIONS 

The legal work of the Internal Revenue Service is performed in 

the office of the Chief Counsel. The Chief Counsel is an Assistant 

General Counsel of the Treasury Department and, under delegations 

from the General Counsel with the approval of the Secretary, serves 

as the legal officer to the Internal Revenue Service. 

In general, functions of the Chief Counsel include the following: 

(1) Supervision and control of defense of petitions to the Tax 

Court of the United States and determination of whether to acquiesce 

or nonacquiesce in adverse decisions of the Tax Court. 

(2) Legal work involving the collection and protection of tax claims 

and other rights and interests of the United States in proceedings 
46 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 47 

under the Bankruptcy Act, and the collection and protection of tax 

claims of the United States in proceedings in Federal or state receiver- i 

ships pr other insolvencies, assignments for benefit of creditors, corporate dissolutions, and administration of decedents' estates. 

(3) Recommendations to the_Department of Justice of what civil 

suits should be brought in the courts under the internal revenue laws 

and what defense should be made in suits brought in the courts against 

the United States and government officials under such laws. 

(4) Supervision of the handling of criminal cases arising out of 

violations of laws administered by the Internal Revenue Service, 

and legal work on administrative permit proceedings under the Federal 

Alcohol Administration Act, or relating to industrial alcohol, claims 

for abatement, drawback or refund of alcohol, tobacco and firearms 

taxes, and petitions for remission and mitigation of forfeitures. 

(5) Makes recommendations to the Department of Justice as to 

which court decisions under internal revenue laws, including decisions 

of the Tax Court, should be appealed, and approves recommendations 

to the Department of Justice respecting appeals of court decisions in 

criminal matters. 

(6) Review of proposed abatements, refunds or credits of taxes, 

including interest or penalties, of any taxpayer amounting.to $200,000 

or over, and preparation of the required reports to the Joint Congressional Committee on Internal Revenue Taxation. 

(7) Review of certain offers in compromise. 

(8) Renders legal opinions, written or oral, for the guidance of 

officials and employees of the Internal Revenue Service. 

(9) Review of certain rulings and closing agreements. 

(10) Prepares or reviews regulations, Treasury Decisions, and 

certain other materials for publication. 

(11) Preparation or review of recommendations to the General 

Counsel for changes in internal revenue laws, and upon request 

technical assistance in the drafting and development of legislation. 

The present organization of the office includes assistant chief 

counsels for administration, litigation, technical ?claims, and enforcement, whose duties and responsibilities are divided along functional 

lines. 

During the past fiscal year there have occurred a number of significant organizational and administrative developments in connection 

with the organization and operations of the Office of the Chief Counsel. 

To improve the overall administration, there was a restatement and 

realignment of functions performed by the headquarters divisions. 

The Alcohol and Tobacco Tax Legal Division was placed under the 

general supervision of the Assistant Chief Counsel (Enforcement) 

with the result that he now exercises general supervision over all 

enforcement work of the Chief Counsel's office. 

The work of reorganization and integration of the various regional 

legal units of the Office of the Chief Counsel continued throughout 

the year. Implementing Reorganization Plan No. 1 of 1952, offices 

of district counsel were installed as each new district was established. 

By December 1, 1952, offices of district counsel had been established 

in each of the 17 geographical areas. Under the reorganization 

pattern, the District Counsel was made responsible to the Chief 

Counsel for the performance of all legal duties and functions of each 

of the legal units within the district. The District Counsel was 

given general supervision over the work of the Appellate Counsel, 

Enforcement Counsel, Civil Advisory Counsel, and Attorney in 

Charge (Alcohol and Tobacco Tax). 

Implementing the plan to reduce from 17 to 9 the number of 

internal revenue regions throughout the country, steps were taken to 

reduce the number of field divisions of the Chief Counsel's office 

from 17 to 9, effective July 1, 1953. The office known as District 

Counsel is now known as Regional Counsel. 

The Regional Counsel is the Chief Counsel's principal representative 

for the region and, under the general supervision of the Chief Counsel, 

serves as principal legal adviser to the regional commissioner and the 

district directors of internal revenue. He is responsible for the supervision and performance of all legal duties within the region and 

exercises general supervision of the Appellate Counsel (in connection 

with Tax Court litigation and the work of the Appellate Division), the 

Enforcement Counsel (in connection with criminal prosecutions for 

alleged violations of internal revenue laws), the Civil Advisory Counsel 

(primarily in connection with assessment and collection problems), 

and the Attorney in Charge (Alcohol and Tobacco Tax) (in connection 

with taws pertaining to alcohol, tobacco, and firearms matters). The 

heads of divisions at the national office concerned with these matters 

maintain, through Regional Counsel, technical and advisory contact 

with and coordinate the work of the attorneys in the field. 

A further description of certain legal operations for the fiscal year 

ended June 30, 1953, is included under the following headings of this 

report: Alcohol Tax Seizures and Arrests; Legal Work on Criminal 

Cases; Delinquent Returns and Collection of Delinquent Accounts; 

Offers in Compromise; Appeals and Civil Litigation; Overassessments 

and Overpayments; Ruling, Legislative, and Other Technical Functions; and Improvements. 

During the fiscal year there was a substantial increase in the overall 

workload of the Chief Counsel's office. The number of legal cases of 

all types increased from 34,811 on June 30, 1952, to 39,272 on June 

30, 1953. While the number of attorneys on the rolls remained fairly 

constant, more legal cases were disposed of during the fiscal year than 

during the preceding fiscal year. The increase in the number of legal 

cases on hand as of June 30, 1953, was general throughout the various 

field offices and was reflected in each of the areas of activity, namely, 

appellate, enforcement, civil advisory, and alcohol and tobacco tax. 

In the national office a decrease was noted in interpretative work and 

in the number of cases submitted for review and preparation of reports 

to the Joint Committee on Internal Revenue Taxation. The work at 

the national office included the development of a [new [volume of 

income tax regulations, Regulations 118, and the completion of 

Treasury Decisions under various Revenue Acts and public laws. 

Almost one hundred Treasury Decisions were promulgated. Many 

of these involved problems of considerable complexity, and their 

development entailed thorough consideration of numerous comments 

submitted by taxpayers' representatives with respect to tentative 

regulations published under the notice of rule-making procedure. 
48 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TAX CONVENTIONS AFFECTING THE INTERNAL REVENUE SERVICE 

PROMULGATED DURING THE FISCAL YEAR 1953 

During the fiscal year 1953, ratifications of an estate tax convention 

with Switzerland and an income and an estate tax convention with 

Finland were exchanged. An income tax convention with Belgium 

was signed in September 1952, and three conventions with Australia, 

relating to taxes on income, estates, and gifts, were signed in May 

1953. Hearings on these four conventions were held by a subcommittee of the Senate Foreign Relations Committee on June 29, 1953. 

In addition to the above conventions, negotiations were either begun 

or continued for the conclusion of income and estate tax conventions 

with Belgium, France, Israel, Japan, Italy, Germany, Austria, and 

Luxembourg. Over 50 visiting foreign tax officials were received and 

attended for study of our Federal tax system and its administration. 

IMPORTANT LEGISLATION ENACTED DURING THE FISCAL YEAR 1953 

AFFECTING THE INTERNAL REVENUE SERVICE 

EIGHTY-SECOND CONGRESS, SECOND SESSION 

Public Law 456, approved July 7, 1952, made numerous amendments in the Bankruptcy Act. Among the changes which may affect 

the collection of taxes are the requirement of early objection to the 

exercise of summary jurisdiction in certain situations, the abolition of 

the strict priority rule, the revised treatment of certain costs and 

expenses of administration when a strict bankruptcy proceeding 

follows a rehabilitation proceeding and the new rules applicable where 

an order is entered directing that bankruptcy be proceeded with 

following a default in the consummation of a plan of arrangement. 

Public Law 465, approved July 8, 1952, amends section 22 (b) of the 

Internal Revenue Code to permit corporations conducting sports 

programs for the American National Red Cross to exclude the proceeds thereof from gross income, provided all of the proceeds in excess 

of expenses paid or incurred are turned over to the Red Cross. The 

Act also raises the ceiling on the deduction for charitable contributions 

by individuals from 15 to 20 percent of adjusted gross income. 

Public Law 468, approved July 8, 1952, amends section 201(a), 

203(A), and 433(a) (1) of the Internal Revenue Code to extend to the 

year 1952 the income and excess profits tax treatment of life insurance 

companies initiated in 1951. 

Public Law 471 (Legislation Branch Appropriation Act, 1953), 

approved July 9, 1952, establishes the place of residence of a member 

of Congress within his State or District as his home for purposes of the 

deduction of expenses while away from home under section 23(a) of 

the Internal Revenue Code, but the amount of living expenses to be 

deducted under this provision may not exceed $3,000. The Act also 

amends section 23(k) of the Internal Revenue Code in order to deny 

a deduction for bad debts to a taxpayer, other than a bank, in the case 

of a debt owed by a politicalparty or political committee. 

Public Law 539, approved July 14, 1952, amends section 113(b) of 

the Internal Revenue Code so that excessive depreciation allowances 

REPORT ON OPERATIONS 49 

which do not result in a tax benefit will not reduce the basis of the 

property. For the period before 1952, the new rule may be elected by 

the taxpayer in the manner provided in section 113(d) of the Internal 

Revenue Code and the regulations thereunder. 

Public Law 567, approved July 16, 1952, amends section 112(n) of 

the Internal Revenue Code to extend, for the period of service on 

extended active duty in the Armed Forces of the United States, but 

not in excess of 4 years, the time within which a taxpayer may qualify 

for nonrecognition treatment of gain on a sale or exchange of his 

principal residence. The Act also reaffirms the right to trial by jury 

in any action to recover amounts improperly collected under the 

internal revenue laws notwithstanding Reorganization Plan No. 26 

of 1950, or Reorganization Plan No. 1 of 1952. 

Public Law 576, approved July 17, 1952, exempts from the $20 

tax imposed by section 3268 of the Internal Revenue Code, bowling 

alleys and billiard and pool tables to be used exclusively by members of the Armed Forces of the United States, without charge, on 

property owned by, or acquired for, the use of the United States. 

Public Law 586, approved July 17, 1952, amends the Merchant 

Marine Act of 1936, as amended, so that on the disposition of a 

vessel, nonrecognition of gain will result if the proceeds are deposited 

in a construction reserve fund and the deposits are, within a fixed 

original period of 3 instead of 2 years, expended or obligated for the 

purposes specified. Henceforth, liquidation of certain purchase 

money indebtedness on a vessel may be a specified purpose. Construction reserve funds may also be used for reconstruction and reconditioning of vessels. 

Public Law 589, approved July 17, 1952, provides that an employee 

receiving securities of the employer corporation from a trust qualified 

under section 165 of the Internal Revenue Code (relating to employer 

stock bonus, pension, or profit-sharing plans) shall not, at the time 

the securities are distributed or made available to the employee, be 

taxed on the net unrealized appreciation in those securities attributable 

to contributions of the employee. Recognition of the gain is postponed until such time as the securities are disposed of. 

Public Law 594, approved July 21, 1952, adds three special rules 

for the computation of the excess profits credit: (1) the excess 

profits net income for a base period year is to be increased by the 

amount of deposits of reserve funds under section 607 of the Merchant Marine Act of 1936 during the base period year in excess of 

the deposits in the taxable year; (2) certain taxpayers manufacturing 

products from copper and brass are to compute average base period 

net income with certain variations from the provisions contained in 

section 435 of the Internal Revenue Code; and (3) under certain 

circumstances losses from operations of a branch are eliminated from 

excess profits net income for a base period year to the extent that 

they exceed losses incurred by the branch during the taxable year. 

The Act also changes the effective date of section 319 of the Revenue 

Act of 1951 (relating to percentage depletion for certain mineral 

deposits) to on and after January 1, 1951, instead of taxable years 

beginning after December 31, 1950. 
50 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 51 

IMPROVEMENTS 

The most significant development during the first half of the fiscal 

year was the implementation of Phase I of Reorganization Plan 

No. 1, approved by the Congress in March 1952. Phase I of the plan 

entailed major revisions in the basic structure of the Internal Revenue 

Service: (1) the abolition of offices of collectors of internal revenue 

and the creation of 17 district commissioner offices and 64 director 

offices; (2) reorganization of the national office; (3) selection and 

appointment of key personnel through established Civil Service 

channels; (4) provision of necessary orders, delegations, and authorities. From July 1 to December 1, 1952, da ns were systematically 

carried out for activating 15 of the 17 district commissioner offices; 

2 such offices had been established in fiscal year 1952. The complete 

reorganization of the national office on a functional basis, rather 

than on the former type-of-tax basis, was effected on August 11, 1952. 

In the second half of the fiscal year, the new top management of 

the Service made a complete reappraisal of the reorganization and 

instituted several modifications for the achievement of greater 

economy and efficiency. The more important of these include: 

reduction in the number of district commissioners' offices from 17 to 

9 and redesignation of these offices as regions; strengthening of top 

management by establishing in the national office positions of 

Deputy Commissioner and Assistant Commissioners for Administration and for Planning; decentralization of operating functions and 

delegations of broad management authority from the national office 

to regional and district offices. These and other measures are described in greater detail in the following paragraphs. 

National office organization strengthened.—In April 1953 the organizational structure of the national office was revised and strengthened. 

The offices of Assistant to the Commissioner and Administrative 

Assistant to the Commissioner were abolished and the offices of 

Deputy Commissioner of Internal Revenue, Assistant Commissioner 

(Administration), and Assistant Commissioner (Planning) were 

established. As a result, the functions of the national office have been 

assigned as follows: 

The Commissioner of Internal Revenue, in conformity with the 

policies and delegations of authority made by the Secretary of the 

Treasury, develops the policies and administers the activities of the 

Internal Revenue Service. 

The Deputy Commissioner acts for the Commissioner in planning, 

directing, coordinating and controlling the policies and programs and 

in giving executive leadership to the activities of the Internal Revenue 

Service and acts as Commissioner during the Commissioner's absence. 

The Assistant Commissioner (Administration) acts as the principal 

assistant to the Commissioner and Deputy Commissioner in planning, 

coordinating, and evaluating the administrative activities of the 

Internal Revenue Service. He is responsible for the development, 

installation, and execution of broad policies, procedures, and standards 

governing the management programs of the Internal Revenue Service, 

including budget administration, organization, staffing, and utilization 

of manpower, public relations, financial management, use of facilities, 

management improvement, and related programs. 

The Assistant Commissioner (Inspection) acts as the principal 

assistant to the Commissioner and the Deputy Commissioner in 

planning and carrying out the inspection program of the Internal 

Revenue Service. This includes the independent review and appraisal 

of the adequacy of controls of activities of the Internal Revenue 

Service as a basis for protective and constructive service to management, and the carrying out of a program for assisting management to 

maintain the highest standards of honesty and integrity among its 

employees. 

The Assistant Commissioner (Operations) acts as the principal 

assistant to the Commissioner and the Deputy Commissioner in 

planning, coordinating, and evaluating the operations programs of the 

Internal Revenue Service. This includes the collection of taxes, the 

audit and investigation of returns, criminal fraud and enrollment 

investigations, the administrative system of tax appeals, and the 

administration of laws relating to alcohol, alcoholic beverages, tobacco, 

and firearms. 

The Assistant Commissioner (Planning) acts as the principal 

assistant to the Commissioner and Deputy Commissioner in the 

advance research and program planning activities of the Internal 

Revenue Service, and in the performance of related duties. These 

duties include long-range program planning to anticipate the course to 

be taken by the Service in view of economic and scientific developments; more immediate planning to recommend adjustments in program or program emphasis in view of changing legislation or circumstances; the handling of numerous special problems, such as the 

preparation of reports required by Congressional Committees, as 

assigned by the Commissioner or Deputy Commissioner; the preparation of other reports and policy statements relating to revenue administration; the general direction of Congressional liaison matters • and 

supervision of the statistical program of the Service including the review of statistical releases. 

The Assistant Commissioner (Technical) acts as the principal assistant to the Commissioner and Deputy Commissioner in providing basic 

principles and rules for the application of the tax laws (other than 

those dealing with alcohol and tobacco taxes). His duties include the 

preparation and issuance of rulings and advisory statements to the 

public and revenue officials, the preparation of regulations and other 

tax guide materials, technical advice and assistance m the preparation 

and issuance of tax forms, and the direction of programs for clarifi- 
Albuquerque, N. Mex. 

Austin, Tex. 

Dallas, Tex. 

Dallas 

52 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 53 

cation and simplification of tax rules. He also is responsible for providing technical assistance in programs for legislative revision and 

conducting the negotiation of tax treaties, and providing other 

technical services required in connection with revenue administration. 

The Chief Counsel is an Assistant General Counsel of the Treasury 

Department and, under delegations from the General Counsel with 

the approval of the Secretary, serves as the legal officer to the Internal 

Revenue Service. 

The Office of Director of Practice was established in the national 

office of the Internal Revenue Service by order of the Secretary of 

the Treasury dated January 9, 1953. The order consolidated in the 

Office of the Director of Practice the enrollment and disbarment 

functions (except those relating to customhouse brokers) previously 

performed by the Committee on Practice and the Attorney for the 

Government, respectively. The Director of Practice is responsible 

for the processing of applications to practice before the Treasury 

Department, except those relating to customhouse brokers. He is 

also responsible for the consideration and action upon charges that 

any enrolled person has violated any provision of the laws or regulations governing practice before the Department. 

Plans were completed during the year which would eliminate approximately 900 positions in the national office, leading to an ultimate 

savings of $4 million annually. The work performed in these positions 

either was deemed unnecessary or was to be decentralized to the 

regions. (See p. 53 for a discussion of work decentralized to regions.) 

Changes in regional organization.—Plans to streamline the overall 

administrative setup in the regional offices were approved by the 

Secretary of the Treasury in May 1953. These plans called for a 

reduction in the number of regional offices in the Internal Revenue 

Service from 17 to 9, effective July 1, 1953, and a change in titles of 

the office of District Commissioner of Internal Revenue and office of 

Director of Internal Revenue to Regional Commissioner of Internal 

Revenue and District Director of Internal Revenue, respectively. 

The reduction in the number of regional offices will eliminate much 

overhead cost and provide a more closely knit supervisory structure. 

The plan called for the elimination of regional offices in Seattle, 

Los Angeles, Denver, St. Louis, St. Paul, Birmingham, Louisville, 

Detroit, Cleveland, Baltimore, and Buffalo. New regional offices 

were to be established at. San Francisco, Omaha, and Cincinnati. 

Regional offices to be established effective July 1, 1953, and the 

district directors' offices under their supervision are as follows: 

Replan District directors' offices 

Hartford, Conn. 

Portsmouth, N. H. 

Providence, R. I. 

Lower Manhattan, N. Y.* 

Syracuse, N. Y. 

Upper Manhattan, N. Y. 

Philadelphia Baltimore, Md.* 

Newark, N. J. 

Philadelphia, Pa. 

Camden, N. J. Scranton, Pa. 

Wilmington, Del. 

Pittsburgh, Pa. 

Cincinnati Cincinnati, Ohio 

Indianapolis, Ind. 

Cleveland, Ohio 

Columbus, Ohio 

Parkersburg, W. Va. 

Toledo, Ohio 

Louisville, Ky. 

Richmond, Va. 

Atlanta Atlanta, Ga. 

Birmingham, Ma. 

Columbia, S. C. 

Greensboro, N. C. 

Jackson, Miss. 

Jacksonville Fla.* 

Nashville, Tenn. 

Chicago Chicago, Ill. Milwaukee, Wis. 

Detroit, Mich. Springfield, Rl. 

Omaha Aberdeen, S. Dak. 

Fargo, N. Dak. 

Cheyenne, Wyo. 

Denver, Colo. 

Des Moines, Iowa 

Kansas City, Mo. 

Omaha, Nebr. 

St. Louis, Mo. 

St. Paul, Minn. 

Wichita, Kans. 

Little Rock, Ark. 

New Orleans, La. 

Oklahoma City, Okla. 

Portland, Oreg. 

Reno, Nev. 

Salt Lake City, Utah 

San Francisco, Calif. 

Seattle, Wash.* 

•District of Columbia is included in Baltimore District, virgin Islands and Puerto Rico in Lower 

Manhattan District, Canal Zone In Jacksonville District, and Alaska in Seattle District. 

Decentralization of operating functions.—Studies were continued 

during the fiscal year for the purpose of identifying operations conducted in the national office which could be performed more effectively in regional and district director offices. As a result of such 

studies, the following actions were completed or initiated during the 

first half of the fiscal year: (a) district directors were given jurisdiction over the adjustment of employment tax claims; (b) district 

directors were authorized to make assessments on employment tax 

returns prepared for delinquent taxpayers and to assess fraud and 

100 percent penalties in employment tax cases; (c) district directors 

were authorized to handle estate tax claims under the same rules 

applicable to income tax claims, thus eliminating the practice of 

Boston Augusta, Maine 

Boston, Mass. 

Burlington, Vt. 

New York City Albany, N. Y. 

Brooklyn, N. Y. 

Buffalo, N. Y. 

San Francisco Boise, Idaho 

Helena, Mont. 

Honolulu, T. H. 

Los Angeles, Calif. 

Phoenix, Ariz. 
54 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 55 

initially referring such claims to the national office for consideration 

and disposition; and (d) final authority was delegated to each of the 

Excess Profits Tax Council advisors stationed in regional offices to 

make settlements on behalf of the Commissioner. 

In addition, the following actions were completed or initiated during the second half of the fiscal year: (a) the housing of corporation 

returns for 1949 and subsequent years was transferred to district 

directors' offices; (b) the processing operations on tobacco tax monthly 

returns and reports were transferred to regional offices; (c) district 

directors were authorized to schedule for abatement, credit, or refund 

tentative allowances in any amount; (d) the processing of certain 

applications for inspection of returns and related documents was 

transferred to district directors' offices; (e) control and service functions performed by the Audit Division of the National Office in the 

processing of bankruptcy and receivership cases were discontinued; 

(f) authority was delegated to the regional commissioners to issue 

notices under section 3631 of the Internal Revenue Code authorizing 

additional inspections of taxpayers' books and records; (g) the practice of transmitting cases involving examiners' determinations to the 

national office for post-review was discontinued with respect to all 

types of examined returns; (h) regional commissioners were delegated authority to enter into contracts and procure supplies and 

equipment; and (i) the procedures for processing, consideration and 

approval (or rejection) of offers in compromise filed under section 

3761, Internal Revenue Code, were revised; the authority was decentralized to district directors to reject any offer in compromise 

coming under their processing jurisdiction, irrespective of the amount 

of the liability, including cases involving specific penalties, and to 

accept finally certain offers in compromise involving liabilities less 

than $500. 

Taxpayer assistance program.—Special emphasis was given during 

the January 1-March 31, 1953, filing period to the program for providing quick and courteous service to taxpayers. All possible arrangements were made for the convenience and comfort of taxpayers waiting 

in line. Evening telephone service and extended office hours were in 

effect in many cities. A record number of taxpayers !nearly 12 million, 

were assisted during this period. In addition to this direct service to 

taxpayers, instructional classes were conducted for representatives of 

interested business firms who, in turn, assisted their employees in 

preparing their returns. Qualified Internal Revenue speakers were 

provided for television and radio talks and addresses before civic 

groups, etc. A vigorous, continuing program was also initiated to 

assure taxpayers year-round top quality service in their contacts at 

all operating levels. 

High school instruction program.—During the 1953 filing period, the 

Service also gave attention to new and potential taxpayers through an 

enlarged program of tax instruction to high school students. As the 

initial step in this program, a kit consisting of a teaching text, blown-up 

return forms, and regular return forms, was mailed in January 1953 W 

30,000 junior and senior high school principals and school superintendents for instruction purposes. 

Occupational tax stamp procedure.—A new procedure was established 

during April for issuing and recording special occupational tax stamps, 

which will save an estimated $150,000 per year. This procedure will 

expedite the issuance of 1,500,000 special tax stamps and will simplify 

and modernize the accounting and other administrative work relating 

to the stamps. Under the new plan, an inexpensive printed stamp 

will be substituted for the more expensive engraved stamps formerly 

issued. The new stamps will be issued for the first time when current 

stamps are renewed for the new fiscal year, beginning July 1, 1953. 

Quarterly filing of excise tax returns.—As one of a series of steps to 

improve the administration of excise taxes, eight monthly returns of 

excise tax were combined into one return, Form 720, which was 

required to be filed on a quarterly basis, effective for the quarter 

ended September 30, 1953. The depositary receipt system for payment of taxes was extended to cover the taxes which are reported on 

Form 720 (T. D. 6025, C. B. 1953-2, 400). 

Modified work program for Processing Branch.—During the last 

quarter of the year, a modified work program for the Processing Branch 

at Kansas City was established which is expected to effect savings of 

over $1,700,000 annually by a reduction in force of over 400 employees. 

The program basically involves a sampling of the 1952 information 

returns and Forms W-2 to eliminate much of the work formerly 

performed. The modifications are expected to result in better direction of effort in coordination with other operations. 

New depredation deductions policy.—On May 12, 1953, it was determined that the future policy of the Service with respect to adjusting 

depreciation deductions would be generally not to disturb such 

deductions, unless there is a clear and convincing basis for a change. 

The adoption of this policy is expected to reduce the time taken in 

returns examinations and in conferences with taxpayers, and to reduce 

the number of unagreed cases, many of which would otherwise 

proceed to the courts. 

Internal Revenue Manual.—An Internal Revenue Manual system, 

adapted to the new plan of organization, was established on August 4, 

1952, to assemble in revisable looseleaf style a single authoritative compilation of the policies and procedures having continuing effect on the 

administration and operation of the Service. The Manual will be the 

principal medium for the communication of the substantive management policies and procedures of the Service. Part II, Revenue 

Accounting; Part III, Processing of Returns; and Part V, Delinquent 

Accounts and Returns, of the Manual were issued during the fiscal 

year. It is anticipated that the remaining parts will be completed 

during the 1954 fiscal year. 

Other improvements.—An intensified program of records management has accelerated the retirement of records to Federal Records 

Centers, while space studies made possible increased utilization of 

space and improved work flow and operations. 

The training program throughout the Service was stepped up and 

expanded, and a number of specialized training courses were developed. 

at supervisory development program was organized and an executive 

development program initiated. 

The financial management program was strengthened by placing 

responsibility at the regional level for budget management including 

the development and execution of financial plans. 

281223-54-5 
56 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

In the area of audit and investigation, a new "single-package" 

audit policy was adopted for examining wherever practicable all types 

of Federal tax returns filed by a business taxpayer at the same time 

the income tax examination is being made. This procedure is complemented by another for the more scientific and uniform selection of 

tax returns for audit, developed as a result of studies of the data from 

the audit control program of 1948. A procedure for informal conferences with taxpayers on contested issues is expected to result in more 

settlements by the district directors with a corresponding decrease in 

the number of cases referred to the Appellate Division. 

Through the intensified review of nonsettled cases to assure that all 

avenues of settlement have been adequately explored, it is expected 

that the number of cases petitioned to the Tax Court after consideration by the Appellate Division will be materially reduced. Steps were 

also taken to reduce the number of cases petitioned by taxpayers 

directly to the Tax Court without Appellate Division consideration. 

One of the major accomplishments in the technical area during the 

fiscal year 1953 was the virtual elimination of the backlog of unissued 

regulations to conform to recent tax laws. The regulations were 

brought to a practically current state by the issuance of 98 Treasury 

Decisions. Another improvement effected in this area was the 

speedup of service on taxpayers' requests for rulings; by delegations of 

authority to division directors and branch chiefs, taxpayers' requests 

for rulings have been answered, on the average, in 28 days. Procedures for obtaining rulings have been revised and simplified to reduce 

work and expense for both the taxpayer and the Government. Emphasis has been placed on increased publication in the Internal 

Revenue Bulletin of communications to field offices involving substantive tax laws, procedures affecting taxpayers' rights or duties, or 

industry regulation. Forms work affecting all taxes was brought 

under the centralized control of a Forms Section, and more than 115 

tax forms were reviewed or revised, including the new quarterly excise 

tax return, Form 720. 

As a result of the past year's experience, many improvements in 

Inspection Service methods have been determined possible, and significant revisions are now being made with the objective of attaining 

better results from inspections and more effective reports. 

In the area of public information a policy was adopted for widening 

the scope of tax information which properly could be made available 

to the press and general public, and greater emphasis was placed upon 

improving public understanding of Federal tax laws and the policies 

and procedures as to their application. 

Various ways of eliminating the need for filing income tax returns 

by persons whose incomes are below certain limits and consist exclusively or almost exclusively of wages subject to withholding are 

under intensive investigation. Other accounting and processing 

activities are being studied and analyzed by a committee composed of 

officials of the Office of the Secretary of the Treasury, General Accounting Office, and the Internal Revenue Service. Projects considered by this committee include: collection and deposit procedures, 

accounting phases, processing of returns, matching of withholding 

and information documents, leveling of peak filing period workloads 

and relationships with other Federal agencies. 

APPENDIX 

STATISTICAL 

TABLES 

NOTE.—In tables where figures have been 

rounded to a specified unit, the components 

may not necessarily add to totals. Percentages are calculated on unrounded figures. 
RECEIPTS FROM INTERNAL REVENUE TAXES 

TABLES 1-6 
STATISTICAL 

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Internal revenueregionsand districts 

STATISTICAL 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 
66 REPORT OF COMMUS1MONER OF INTERNAL REVENUE 

STATISTICAL T

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6.7

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a 4 e.44 a..4.44 ora'-r ea.4. a4.4. 

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a 

0 

Distilled spirits

—Continued Wines,cordials,etc 

oW 

Miet10.1. 

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ee 

a 

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Wines, Cordials,eta

—Co 

me 

ggqg ggggRgIgiggER 

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H El-g-f a 

Special oroccupational taxes 

STATISTICAL T

egggggiLiaegalgg-reF;ers!Ifg

MgEngEgggffiggggilgRligniRgE

lgggggig 

a, ,aa 

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nsand districts 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

51-

EgEEgfligEgRgggiggRAFgggagggglgUggE 

,nathIgcssa.9:- ggggrigg-rgea4Fig,frige ,

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Total wines 

0 

Rg 

A 
a 

TABLE L— Rece ipia fromspecified sources ofi 

opc 4 ).

0-toiXa 74:-IABgel 

-22040,2.- 

;AgAN52 

ooA 

A000 

SAAA 

a, 

0

a°.54. vw-o o wtt 

1 

:2214.1:24::rgt°2

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:

211-'

s_q-vw,.x,a240,

4zor.m; 

mogim

d ' ch'Ev4)q..oarzi 

. 

4 

0 

281223•

54-6 

REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

am dam 19 00 

galg.a4eaor 

gggagig PE- ARAMMUL4 4§2gEgArK 66nirnM 4

g aa-Taae gaptarg g r gg s g is 

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a 

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et 

ry P 

ta bb 

Ri6F, 3ARMIEURnAAH1516F.H1 2

argar a5ggg6gg 6 gc4ggardiagVg 

agaF1',9: 

gARECia 

Largecigarsclassified by intended retail prices 

g 

6g6igggOggig66a:fgagggAiMaggag66 

6AtTA6gE6REVarlA6:161RA5EIRAAinEE630,5 

g g tiggggggLfteggg-5 

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tigral 

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4 t

0

70 

EglE6A6RNEWAR25AREgrai6EHAA66§1W; nillialiRMEEBEEMM-16EMER

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E656§REEMARME§WaRaE2E-7e REHRUAREMARAALESDAMMEAU

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2 

a 

a 4 

5g 

5 

,§ .4 

lj 
REPORT OF COMMISSIONER OF INTERNAL REVENUE Cigare tte 

papers Di 

cent)and 

tube s(1 cent) 

g 2 C 4 4 

- 

. ^ 

6 

<0 2 

6 

e 4 

Cigarettesper 

thousand,class A (small)$4, 

class B (large) $8.40 

i28 "' E'rE2 RXEEEEmE FflFIRE"mg 1 

Cigarand cigarette floortax 

(tax -aid stocks 

on

p hand) 

Figgg- gg6 g - 545 RR F2 "" rgR2 '"42 E 2 

Smallcigars, 

taxpe rthousand,75cents 

in A gr.r 

4 

§ . p 2 

Largecigarsclassified by intended re tail prices

—Con. 

Class0,taxper 

thousand,$20 

a 

R 

<0 

i'mm argartEnFEEERR 

-: 

EmF"I' "E'8 

. 

C. 'i 

-r 

E4 

e 

ClassF,tax per 

thousand,$15 

E 1 E Egg FEErEER- R 

5

FEE"EE4 

.' ' 5 a 

-1 

i 

Class E,taxper 

thousand,$10 

R'E -

II 

E15REREEERRFREEFE FER2 RFNEgr - EF R . 

Internalre venuereg ionsand districts I 

PQ e 

lo 

51 

s 

gl..A1.1 2 

z<melzp.,e, 

A2c13ico 

eere'ziefleig 

CC 

-- 

f2tIga o f 

z z t 

gagga 

.x.ozi 

g 

A 

z 

ci 

tt, <mm4.0Amoz 

e 

AA 

to 

p. z 

E:NlEgU 

C'C'--, ii4 

un 

0 

WvarealFie 

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e. 4eigiv4mpz„. 

MIA 

0 

4 II 

522,2;;& 

5130E 

55EE4w! 

— 

W

A 

I 

° 

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67s

4 

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= 

— 

fi z 

72 

4 

Cc 

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Ca

Ca 

Ca 

Ca 

Ce 

Ca 

°.) 

Ca 

C 

. 

tg. 

Tobaccotaxes

—Continued 

STATISTICAL 

C 2 =”1 pggn ning 

EVEgr Ai arvrgaw-Rg1;agre

g g 

g:f 

ER 

Ater

EH 

'-' 

R '4 

:-; 

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14 

gg gra,' 

ga 

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g's 

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1" a m

R ER E 

7 a 

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a :51' e 

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110Z.t1 1-21.4. 

0

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floor 

0 A .T. 

qggarg2 §014.trgth4; 

c, 

t 

asp 

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em 

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8 

,„1 

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kg 

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i'4 ,1 ,%Opl

ojite812

dgite5.4oz

I 

Co 
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e 

a 

ggiggiraragg'415g

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ARIER2R5 

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STATISTICAL 

ggfggagaiggaggggagtgaligggIg

NI4R4AREE421RAMEERMAliiliERR

a .44 

pitclgtaw 

nscP„PiAl i4 F 

t

o

g a; F Hm-. 

... 

Wegq 

tiggitt 

44 

h0 

l't 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Stamptaxesondocuments,other instruments,and playingcards 

Fir 

47 

so °s1 

.E. 

RRAIRRWars114ERRIEK=a4E0N1N0g 

101E4ERARREARR413R14RENgR444ERgg44414 

40 

a c.; g g tza aaa ge 

0. o. R411 

tig g":7 -7.-- gg 4 

Ag5 

R-R- Ng 12 Z13-P1- Apr- '442 r, 

figt 

. 

tIR:6. 

4. 

P20 

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g _.,.. '7;1 7'', "Z" AE PI RAE Egg 1 .1. 

s ; 

Issuesand transfersof bonds 

of indebtedness,orcapital 

stock, foreignInsurancepolicies,and deedsof conveySales by 

directors 

g .4 

NgtAgRES44421liqRWSRAR4045.41.3 

EARE4521ARRANAM4FIRg4ERHERAI3IRgIM 

gae a a 

Salesby 

postmasters 

HERM fi Ea R 1 1E4 4gRRRAR1M 

R5gIrtg g '41 t 1 41 ggiggI440.! 

- 

a 

at 

Tobaccotaxes

—Continued 

E. 

° 

sm 

Agg3RAFEEEREAgggggEERFEEARIRREAMEA2 

..m 

a 

g A. flg'PRIR2laqtagagggEigggg44. ? 

v.

, a a 

g agg .: 

a gig 

ag . 

IP 2 

11 

1 EREERR4RE 

ERE444N4 HEAR! 

2 

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44W g-aa eaaagg 

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a• 

Internal revenueregionsand districts I 

. 

. 

, 

e..)-0i 
cilggggterr5gt4gg gggg 

11EARRHAERREIEREAFARE 

6:F 

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RENEE Co S.22S: 222 -

55 

gg 

gg' 

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ggaeag 

Iggggiggiflg5g666M5g5 

AFRERFREEREFEEFIEAERAFEE 

aa c50 2,6-ra- gg 

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f21

30 4Zd 4flx 

1ca dei7A 

A 

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g2.0.=4

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ANEA' 

RAAREEN 

Wk:646ti 66662t 

AgREEERFEFgRARRE 

et: 

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ti 

co 

a t 

Co 

Co 

Co 

ro 

ro 

cc 

76 

re, 

4, C.) 

oa 

,41g 

:4 

c,) 

cr4 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Manufacturers' excisetaxes 

Automobiletruck 

chassisand 

bodies,8 percent 

EEgE 2EERA15EgN2S2EAlgagE2iAE2R2AMEE 

Egri wiggRi REIEPagg glagg64flg66 rig ,, 4 a a 1,, ,,; , 

Mechanical pen- cils,pens,and 

lighters,15percen t 

g 

6 

g 

K 

5 gFRA - g'iqtA a 

et 

F 

4 

a

IFEIgEg 

gi - 

- -u., " a 

4p, 

NPF g 

. 

R 

,..e 

Eig 

... a 

Innertubes, 

perpound,9 

cents 

2 g 

i 

m 

i 

4 

g 

a 

LIE 

,;.- 

igg 

REF RER 

gg 

. 

agr 

HE 

. 

1 

g 

R 

g: 

R 

g 

Tires(whollyor inpart of rub- ber),perpound, 5 cents 

B 

A -Fig 

, 

6 'sr 

AEE 

g a 

gai gg6 

EE'REA 

gee 

REE 

a 

gg gag 

616 

UR 

-t gg 

1E 

a 

1 

E R Ferl 

a 

Floortax,gaso- line,12 cent 

pergallon 

a 

- . . .. 

Gasoline,per 

gallon, 2 cents 

t c6 

5 

1 R PFF1RgEERIE 

g 5 66

g -1 gp

51666g66 

, 4ig 

5tg 

UR 

661P65166161 gal 

RERREEREAEFEEMEg 

g g sri-g -Pfm 

ea 

Lubricating 

oils,pergallon, 6 cents 

g 

F g 

g g4 YEAR1111NNE 

g q Egfi'llga1E a e ea-r ee 

?-:E§

aR111112RE ' 

tigE5. I 41 e a -7 

Internal revenueregionsand districts 1 

m 

S 

'9 °' 

raW. 

0 

atagioati....Nas. 

m 0200 tSP0 - 

tIB

>dzg 

0 4) 

11;44 

'404 m 1114 kg<mImm 

860 

Z 

Z

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tl 

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,:,t1S2Rg 

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0. 

-2

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gg

H. 

- 

B.0 .8 

if 

mSta.4t 

...04.0.02 

--2. 

^ZZ441 4°' 

 tuAc.tet 24t4R2P 

owt 

'-'''->; 

g4 

- 

AMOZmairtm.occE.4.4mMgemott,,z 

15rs. 

. C °C° 

44t.94X4.: 

-e.e.ea,„2 

A 

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am 

t41 

6 

mAP.siott0t412= P

4 

m 

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q 

i 

0 

0,0 

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---c"3--1 

0 7<'M2R.. 

ls 

MS41 tE% 

34c 

..- 

o 

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STATISTICAL T
-tan Z744-40

A-SP .4,mm 

W

m 

SOSZtn 

4g 

REEnE 

4e'SI 

RELINE 

asg 

4 :2 

78 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL 

a) 

at 0 

V 

a 

a) 

gra 

ti 

v 

• v 

I-a 7 

SI 

4' -al 

. 0 

"Jc.) L 

e

4 

(Z., 

, 

4 

A 

4 

ft 

7:1 

CO 0 

O

.14 

C. 

Manufacturers' excisetares

—Continued 

Musical 

instruments, 10 percent 

E 

:5ggaraf4441 

ENIREEERIE 

c7s 

Its

TERNEVR 

-rgf g Egr 

ERIE 

4 

H 4 4 

4' 

e

c. 

te4 

r gs 

ed proas mi Gum OT ' qd ouo ea2 qd

w.. a 

g 

g 

f; 

a 

g =IREEREMEEM 

ggg maw 

a ...: cga 

Ali HERM 

aa 

het 

41ER 

a g 

Radiosets, televisionsets, 

phonographs, 

components,etc., 

1 0 percent 

.. 

4 

E 

.4E 

1 

- i 

1 

-

EIEEMEEEINERI 

g e-reeagag4 

raiggiagg41W 

ge 

NEEEFE 71 

460g4 

4 .1 O 

4

E4 

-- 

a 

,e; 

E EiE 

Ff4 

cg 

Electric light bulbs,20 

Percent 

g s

f 

g 

g 

s 

E 

7,FssMR1E1E:MERE 

sfgg '4flf -

 - -

-s 44 

if 

gRUEP 

g ss 

$ $ 

E E 

Electric,gas, 

and oil 

appliances,10 

percent 

4g

ENEEMERAEEREEEEFEEE 

-r4411145;44t40 

g a L, a a -: mg mm 

4416544ga646 

IREEUEMORIREEREE:i 

g414 

gee ”ie a 

Partsand 

accessoriesfor 

automobilesand 

motorcycles,8 

Percent 

r4"E'EgEEMEXEMFilMMEREERERWRi 

REEURREEEHEUEHIREIEREEREEREHHERE 

a ,:a ...,a 2 a4" gaa ge a 

Otherautomobilechassis 

and bodiesand 

motorcycles,8 

Percent 

1 

E 

4"g 

EEE 

Er 

E. riEIRIEUR 

Li g e.4E"45 .

EERENEER421 E E 

IRgIREg'AE ' ' 

Internal revenueregionsand districts 

z 

S 

tl 

IR 

0 

4‘c!zg 

a,doat 

0071.:: 

.., 

iatn- O2Orgo 

2-4MmOza l,=4Mma. 

.03M 

Z 

0 

a 

;7->.-P- k■ , 

.um 

_ 

e4.zz 

A As

1'4 

4 

- 

a, 

0 

2 

-zz4P, „; 

Amgzila 

.0---; 

-- 

4 

4 

migo-gA2 

,0 

. 

=.0 

aB4S 

-fllic 

o 

4 

A45§02.4144S4v0S44o442W1 

19%.9 LsisflatEgii.goitiV 

4mo4a,M.t000ESANOg<mool-CZ 

8222-4_ 

7 

elgl: 

- 

0.E. 

. 

Ti 

--;,,,, c m 

6°.1.zgg. 

0 

tr T.- 

g 

PREECE 

f ge6 g 4a14 

nigg§R;Frgfl 2ERAE 

-zaRe g a4aa 

A E 

P

RRA 

rg 

:1ER APEERERAE" 

MEREggEll'IMI44V4E4.q4W

EAREURE4NEEAREEIE2EREEREEEEREE

g44444 

4S4V4

..9:glgfgaignqg 

EEREEENUEUERAEE4EI 

::§1.a 

..a te 441 

Eng 
EEEE 4 :7." E 5" ESE 

STATISTICAL T

hp 

NEENNEM:i 

gEg 

NEgRENIEUE5REE5AgE 5E 

Egtsg-rgger-rg g 

Ei 

ER 

Na 

AEA 

No 

Eg 

gg 4 

k-c

MTH 

SE 

NE 

EggE46 

IggaTa 

,teme.6 

ro K

RraN24 

m " 

ErgEggErgEg5.4IEEEgg 

"2-21c4 Fgg g 

'6

MEE 

Wg 

5 

C- 

•W 

Wiz, E-Eza 

3doTbc

5 

g 

• 

SO REPORT OF COMMISSIONER OF INTERNAL REVENUE Manufacturers' excisetaxes

—Continued 

Firearms,shells, 

and cartridges, 11percent 

i E E EE'N5gENEN 'lig E EE - 

gs 0 

Fishingrods, 

creels,etc., 

10 percent 

gtEtina§MEM9ggREW-lEgngteg g Elt§ 

elgi `tgggar=6 '-' it6r6-1 .4 g hrr'6 

Sportinggoods, 15 percent 

ggMEELEggiMEEZEINIRE5EE'ENNE EERE. 

................. ......._ __. » 

glEEE54gEER74EMEER -5ENEEEE 5-E 

. 

» » 

Cameras,lenses, and films, 20 percent 

. 

E R E gEff5E•155 RgE E52A5 5 ER 

4iE 

Businessand 

storemachines, 10percent 

5 EggE5EIENgEEEMEA E 6VAE' 

6 ii ggggggrigrigi:IW EW -' 

Matches,per 

thousand,scents, 

andfancywooden orcolored stems, 5I4 cents 

o s g ;Ira 2 E ER5 

., ,,,I4 g 

.4' 0,,„ 

Mechanical re- frigera tors, quick- freezeunits,alrconditioners, 

e tc., 10 percent 

NEE EE EgEgENgEE EEEEEEEEERNSE E " 5g 

a '5 gg514flEht FIttwggnig:t gg gi 

_ 

.... 

Inte rnal revenueregionsand districts I 

iElg 

-'- . ,---;.;--2 0.=

000 

§gc.'4- e z zt --T, ce4eee mmoUgA, 

2c(3ZI ZUggig 5tililAnA 54E ""„°4,x3> 074.6Zgra 

. g /glib g gg 21 .9.-wiv 19.,n 

.ep-01 

22gz.-Et4=—taAa-e-AEA5g1guo . mE 0.41 

an.t,0e>404.47,,,,0g=g="Eass, E, 

2-Ommgaatammamcs =moZagm3toou," ag 

z .i „_,.41,1, a000 --- 

F .2 At 0: A g - 
Retailers' excisetaxes 

Totalretailers' 

excise taxes itz,? rz

agtkaggigraglitatiggaggiaalqW0 

gRgERREIERIWaRgRERERggRgRUEREVRiAgg 

. ag444g4ggmath,ra g - . 4 LT44444g44a4444 . Toilet goods, 20 percent 

g 

RWEIRe4g44RIMIIRRRgRgERIROgalliORR 

IERNREORAPERERREIIINERRgIRRRIRRRUERRE 

04- a gaa--414 ..AA ,eaa a --ea a as 

Luggage,20 

percent 

d 

g5ggigtOggliffeiggig16191FligUg 

85115BRURROIRRIRORRAERViRREFRIREEERR 

a ^ - 

raand it

f 110 / [9 1 5L 02 

HIRERRIERRIRRRIRRERREiggaig- R4ERERME 

• of .i. 

VERWIRMigira4RWVF:RWMUIRggRg 

aga44g44g4a4R4- c.i- csaaeaa4geaa4 44 

;um 

g sta im ' .tad -

d 

OggiggliggtaquAggeilageggaiPPU 

ARRRERRUggRIEERRIRARRREREEERIRERREgia 

a ,i4. a 4 44a aa- 4 a 

Manufacturers' excisetaxes—Con. 

Total manufacturers' excise 

taxes 

R0466024a4C4gFORIRgadRaRgRigga 

ERRIREU775gMEREARMNIAREERRHURREE 

- - g -1 .rigg4Igg

iclgt; IVF:-44V

"r,i 4cf 44°' 

Pistolsand revolvers,11 percent 

15 5 § giRgERR g. g 

" 

8 

Internal revenueregionsand districts I 

43 

T 

a 

0 

',4 

°F.

"414; 

't0-gt'tt.'0.08 000000..r....0

0 . Bammtlaaamm,-4m 

). 

1 70 08,1 .

g" 

Z 

Z 

g 

saa-TTmegktEvriA 

>,-;-:,.Th 

eae

Z 'a xatiao:g 

Zz 

10 

8vs 

0 

A 

V 

>-.>.: 

0 0T

ma5

lz 

° 

W2 1 

a 

= 

T.,.48 000.0.a = m0Zaa 

,-- 

- 

'-' 4,4t.Cr4 Z 

'A4a_,9Egz 

iM o.. 0-1 

;gm 

it 

a 

"' 

If ,i0 

. 

o 

B 

4000

2.c== ,, 

S-864.0 - 

000E, 

4 

44:gSg> 

a-a00g4 .74 -. 

i 

.0 0 

4Wf 

10 

a;,811t0a

48,"t0- 0

0M8111 

= 

a 

polo 

03Q°A;0 0.4.m.r.E. 

EISP.20P 

,--.^.-, 

0 

. 

08 

=. 

[. 

....Z 

rsl

tfWgiaggiftgaIIVOlt45ggi

igEgingEtir:EEIRERRIRERIRREERRIRE

,,iai 44a44a44garaeotiaaagda4 

,e4-44a,si 

gflilligaga400614Wg6gOg

gRERggRRARMRREARREgigaiggIRR

aa 4 aa aal 44 a 

.Lf4 A. 

RIEWRiggffitalaliggag014/16a

URRERRIREIRRIRORRAgnEREARRgEg

4 a e A.4 .47 doi 

g.,faseg 

MigiffaggMAIMUVOiiVM

ci‘'RRIRIERLIRMAERRAgEgURRFRERE

net a4a4as 4szaaag thiaa 

44 aa4 

gggligegg/MOVgligiggraWIffg

RgERgnE4RUPERURIggERRERRRiEgig

4 aa 

Ft474gg -

IMAggiggigl4OgliMgeateil

MECURREggRERROURRIRERglIgR

-es -,!Fctrage=7.Tafg fl -, 

a 

gE ggR R;; R g R at 

D 

0 

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tA3 

1.1.1110 

Qeopaan4,.. 

tpr-01;” 

a 

0 

a 

2 

mgd4A.V.zg_ 

b 

aligA 5 .s sa 

; 

4 

al 

$ 1 aileqgs1: -

dogplizINZora&ka4

z35ZW1c, 

Z.-K:-.1 

bA 

Ali 

-FE 

A 

0 

8 ,

1 

isp,,0 40

tzos5.a

.p, 

041 

l 

II 

82 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

Admissions 

REPORT OF COMMISSIONER OF INTERNAL REVENUE Leasesof boxes orseats,of the 

amount forwhich 

similaraccommodationsare 

sold, 20 percent 

.. .; 

7.: 4 - 

w-e6. 

gg 

.. .. 

eT 

N g 

gg

:t5A 

-O° &ie

NS 

. aa

SSA 

-a 

42 

-' a 

g 

g

NtE 

. e 

Ticket brokers' 

sales,foramounts inexcessof box 

office Price, 20 

 percent 

1 

E 

g 

R 

s

ng ii g g g 

1 

ads 

'INHERE Ri5§Rg 

.:ge.6. ,r44e-r-r 

A N 

Admissions, for 

each 5 centsor 

fractionof the 

amount paid, 1 cent 

011Ellgg6taggt560V06616116

ENUMENERIPMERNMRiEHNiRNEIMI 

1A6M6 

E, 527, -4eaa-4a4rgaaaa-.4a Awa,eaaagaaa.6.--; 

4 

vrt 8° 

84

et.E8B 

1114 A 

dg mw 

4gar 

pgv4) 

2 - 

geI=Aiggalger,Efgg"WgrisWgnagegggg 

R2RIgNAREPIE9RERN5RENBRENERIENRREH 

.-- - -A-ta., A - , 2,F; - :-.. 

of,t 

A. 4) 

- 44 

A Ek.s 4 

° .4

i l' 

g4iit 

i 

1 " 

PP 

§REIEHRig RRNIRM 't:Ir.:I"lq..MIRR4R 

gritimtlg F;t9.;-,ithigg."6. ggggIigt1gW;Eigg 

Aa 

..74 

NO. 

4'4 

4R 

o a 

-44

RONERHERIMUMPUERMiEgIngERNE 

410661c4gMUREMinneAeLlt-.47; 

 '-' 

it

thg.la 

ifi4 

a 

48 

r4,1afggggagg

W5AFARIRgAIRPMEgEOREMHREIERU 

is-i44,06W4g4gWgqent 

..D _4- ..t 

Internal revenueregionsand districts 

p° 

iialic: 

42c5ig 

"2 

ti ii

z 

t 

topppaAia

;TgliteP0701 

Telsigdy.:150-2.0 

oppa.aagau 

,5

p

pp 

: a 

, °. 

ye 

P". 

so= 

il?, .1 5....1:0E-4 

-iig P" 

gqas 

4

A.. 

ImIKL154 

o 

.. 

aglWis.,s4 

Ott., 

,-: C 

s.g...= 

°0-7. -Pg.rnigi"E 

t''..,:e%> 

8=-4 

. 

amocorp.aa004 

f 

- 

Alts4AEi 

rp 

d

alciis 

t6.0 a, 

-- 

00 & 

STATISTICAL TA

g 

71 

!17,T nunnagg 4g- Fr RRi 

g 

-ig 

gn4 

g 

g 

gge6 

EV.R 

a 

i 

g

ii:IRIgN 

. ..4.4.6ga 

8 

a 

RA A A 

a 

Z. 

aa 

RIE 

aag

IgURUggigliVgniggtRigga!MINE

gREUIRRMEREMEIRIRHURREFEHEN

t5a.4.6g.-4 aa ei•.ia.fg-re„-s-Nramd-r.6

544gAgg

FM71§graiRFAIRWMFMMEMOr

sggggg=iggggq.c2ItalOg2104V

-

-r ci

ggigeoltegg.ligc..fq...ig.igggr4ggg.

.A.PlAgrOi§IN4InNnMIENERRREER

rig, 

Maalg

iEREERERERFREA5NMEgROPRERRNPRRP

tinta gniE:flgqiii:r

4a .4' a -4-4 a a--; 

fygOggg="440

gEfEUgaRgEEgekigFAIEUEUM7grU

50WOWKinWigWgg

.

-4. 

i2 

0° 

gg 

2M 

1 

0 

B 

atqt 

Lt.; 

mapsA

g

g 

. 

S

g 

gg 

00,4'9 

1<opp 

I 

.50gxg.:43,va 

: 

4a 

as 

014wAiaes° 0 8 0 . 

mmowa 4 

no. 

g o g 

e 

, 

EA .0,1anNo g4/ /

zgg.gtO 

tEm-4 

<alazo 

g 

IbE 

14 

mi: 

Ra 

5gPx ? 

.f414.gg

ei 

.... 

Pi

aa 

tio

281223-54-7 
STATISTICAL TA

88 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

C

413 1.4 N.C. 

a 

3 

Bp4gi PIPR8 E 

tart S § c8 PW3 A 2 

st 

&tail 

apc 

a 

Log 

aa 

S 

.0..

Sg24 

■21-222 

S 

OC 

41. 

CO 

raS 

aae ea 

ER 

mom 

.0. 

141° 

0 0 

A p.igmaraii l

41ti r a 

ate.,42i4=44 

PAgP;EHE8 gEPIM"§FitEligniagERE 

N 17; 

a 

aaae 

3R1ttR 

r

lantiarignagHaalgElitERIMIRREIEE 

REREgaigEgggRallgagEflginlail 

,t4 N .pcomenC4N4r6044 ra.comotwagnmeic ■ 

51

EEHEMargE§MankiRPRinraRAMEER 

2WErailtREMI5M , 4RHARMHARIsg a. a a ee.4. a a. 

g j 

..`4 g 1 ir- 4to Cb10.C1 

0 

E 

m.ga

C. 

o 

42„ipijoTAgeig421A

0gt

.9g 

Ed 

igq.40-414. mE=E

aX4 

14.1014.a dMW w qiilla24,W = 4NtEa.goo0 

iteiflIMU3E@ a...,z4 4 

tHEMIR 6WMIEVE.3tHrPn

lartgq 

aaa g 

1001g0EggIntIggilgigttlgE

EUVAMMERFAIERFEE4RREMEIREHRE

71,4

aa‘6ag-regae.rga-;agg.4

M-^

RURVi 

- 

PlaWg:1

REiRnEEEE35§RACREHEMMRHEOr

-E44M4WallOYEIRIUM

ea a a a .ra 

tg 

0 

Fi 

CJ 

.s 

I 

Na 

Co 

00 

"g 4 

Internal revenueregionsand dis 

a 

Cb 11 S RRA'R 

U-014 - 

aScSig i5-2Mr44 

-.i414=g- oaaay P7 

40(40 m 

2444 

-saa 

—

o

— 

--c. 

m A 

OdWZ4 

. - 

230 :2m112 W E 5 50:1 A4 w 

o

-a_ 

y 

42404

r, 6 r 

E 

1r or4 

egirg34,1 A v

elpl -Ibmaid

P m 

gg 
REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL T

Miscellaneoustaxes-Continued 

TWO cl 

LIPS12 

l!ghlk! 

oe-on.. 

+4 eg oS 

E R Ng a t.: e a 

'a" gE E E 

gg 

II 

R R 

2 vegetableoils 

T

'AtmMa 

AG 

pi 

Illfai 

1401.0 

00<ma 

Mil§ 

'T, 

RAElge 

.E.9-.7.5 

d.r 

V' 

• 

gEigg 

3013 

i 

Narcotics(opium, coca leaves, or derivativesthereof)-Con. 

Special taxes-Continued 

Dealers inuntaxed narcotic 

preparations 

and la - 

tories,$1 per 

year 

$16, 835 1, 253 

8, 079 

771 

4, 527 794 

1, 41 1 33,141 

2,

577 

10,067 

3, 658 2, 599 2, 841 11, 398 

31, 889 

6,552 4, 144 

4, 100 8,623 

5, 348 

386 

731 

26, 788 

1, 721 

9, 693 

3, 993 1,592 4, 871 2, 875 

2, 367 4, 678 

24, 923 3, 537 3, 152 1, 773 

4,218 

11111111111 

1, 908 6, 717 4, 118 

30,748 12, 391 3, 284 

10,682 4, 391 24, 054 

730 508 

1, 1185 4, 072 548 3, 233 3, 867 1,930 4, 420 2, 711 20, 104 754 

5, 186 6, 034 1, 866 

3,

270 

2, 994 34,265 

801 836 

454 

12, 980 9, 094 1

240 

An 

RA A| 

191 

-9$ 

.54 

Internal revenueregionsand districts 
92 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TA

o 

4) 

4) 

ro 

a5c 

tl 

ti 

0 

ct-c 

T) 

- cc, o 

g 0 

dJ 

 +a 

g o 

cg 

cot 

tl 

c.c.) 

a 

ti 

0 

to 

a 

4) 

to 

"C"S' 

a 

ccg, 

. 

,024

2Eg 

gla- 

 cl

, 

.Eg 

c'5%.1E 

V'

V5WiqUanCartiggagnagli 

WaggAggEgREEREEtURREg ERERREEFERa 

46E 6056066166‘66g6116,U66,416ii: 1

Miscellaneoustaxes--Continued 

•2 

F9 

.9 

-S 

tglEggiaq!liWiElliVagdig540

RERREgERREEEERENERMR2EBEHMERAi 

6 

 . K . c..r- .10 '4-04 8..c ...mRm ea a m .. 2. c4 

..T.A°1",_ 

'UVa

e--0. -RE 

l 

° E.524,- 

'2. 

EflEg 

g' 

,,i gl 

t 

- . r.: 

REEEEiriarREEEREITE 

t-tc- -a e - R.,-,..-- -eas-r.s 

9 :''- 

At e glafr gr

Excise, 10 

percent 

g 

F:PgRiEEER 

`..° .. 00°`x-- g-va-rganrgragmliggggge.cEE 

REEWEIRMERE5EMIgEFR 

n mo Gs* ' ° im -wh

PERRIMPEEMEHIUMERggEHEMENV 

a .- ..6.,:ea ci.:-4- ,o- -,rwg4.6i7f,To■ s.4,k E

.7; 0. 

Ar 

Tag 

lb RE471EREPERRREEEEREEERAWARggEXEEEEE! ,

, e7g7e. 

co 

ag7;gglugggAg 2 ." 

. _. 

ggligguar.saalg 

- ta,„ 

. 

a 

=3 -'2 

a 

R ilrF,4 4 .:. 

Eg 3 ,9 E - 

Coconut and othervegetable 

oilsprocessed—Continued 

Total coconut 

and other 

vegetableoils 

processed 

i 

E E 

°' `I gE1

E EgiirigiARIREE 

4 ";Fte4ff`i ?1.11E4 

ERgER 49 a., RR F. 

Otherper 

pound,3 

cents 

R R ” E R 

IN

.5 

1!

ctii 

;IN 

F-1 

Internal revenueregionsand districts 

23 

.9.,m, 

t44

0 

t W;ij 

,S ,0 

,7,,›OZC4 

g 

44 

e „ ll, 

r0=q 

0 

.>-.. 

zeiz fr, 

e....s ni t— 

ViKcic1N 

0 wa 

 g•■ 2 

4mm.5mLIPICZ40W -7

:so 

, 

z 

s=. 

.

!!:40414°n1Al t wq. a .-7,i4.0.,,,0 

1,.g...t .51 .) 

j

, a4,3a, 

 a 

flit'aSASP 

V4 

o 

$ 

SPI t;' 

oCeg44, 

soon 

2E:0:0 

..:aiT0. 

-t... 1 .Eni 

.2:4M&z, 

SSS.a'" 

.29..:24wa› 

,_ 

.4 tip 

1Ap 

1 

._E r .2 

"c1 .. 

..gn 

(Damz 

4 

_-„---,; 

uo,,,c .., 

iggi5ViOgiV5E.116,41lign:UOR

gEOEgglIgEtitiReWaT;IgagggIggE

Egig.IMEMEREIHMEEMMERR g

.. ... 

lar4Willattg6664616gaa

gUE§RnRnIgEggfERE.I.E1EiEFEREggE

94ff:fgge,-,:17.-,ftvgwelTiffg.laoscideg

Mg ,i4,,, 

 in ggintl il g 6:2 0 ,U6Pril 

REEREMEEEREEEROBE 8 gRUNEIERliggiE

Iggtgrg-4:" g "f24 V15grigg 4-:=4 

EgEggELai4RMEERggElgigri 4 g@ig

arceggEf a :-,,.4- -,Ei rig g ofc‘floi-ce^ 

. „ 

5t4VggggiarigagOWS-Iff5rq

REFERWREEEEERVIEREMEMEIW

7AWE

.0 .; 

g wig E- AR alflac'eS4 mr" r 4 

gli 

'Egg 

'R4 

m^8 2c

g 

mci 

'V' 

REEE 

6 

E EL,. 6 R 

. 

6 

7'1-. R

i[ 

m g 

ES giP gl g 

- 

014 

., 

k.E. 

4E, -. 

.Egl g20-44.1. 

a; 

-- 

t 

0 

..4 

4'4'3 

.,c124 

.', 

1 

g 

Et 

—ge -83 

1 

o50'9Z.1.12ZW 

='a.d. 

.WTrtE2 

..g.,oam 

10-- 

8 10T L9.0,0.0, 

• 

znag121.4tAAaroorz840T14,044g

. 

J: 

.... - Cito 

Zn.C1C) 

E-F1', 

ga.... 

!,, 

ao 

TT.1 4 -4A00g-E

0

.a44,54-1

2 7 .4 ,g, 

om4..7

no. 

o 

01 °
STATISTICAL TAB

t■ MWM1NMOMdel.OMMgCMCCOOMM*0.MMM.MMLO=CO

ggWIFIM

igERIIkiNaimtgagiRraiRniFin

ggggKgaggWggIWW5ggwiggigg

EfflitangRIEUMMIFURIWORTHEE

,554,4WItifMigigaUgg

gagOlg4WEIlliaggggiretVggig4t

.4 cd 

GaR00000000SPSEaccic.Sccq-,a0SR00c45.SE5.0CS.-

" 177111 ,—. II 1 ,—, I TABLE 2.

— Comp arative internal revenuecollections,fiscal years1952 and 1953, byregions,districts,Statesand Territories 

94 

NE+ 

MIU15411V%14061560

MilgiUEERMWAETERHHIMEMERE 

215MglOW ,

t el-evt.4---rit-gaggagetptfuggg*i n- '' 2g2.d. ' 4S Add. mm 

TARSEMEUMINk4AWiRinrig§N§EHE -

KgVgggggFIqUggUggiWegd

naingggiOggitliggallgggnlitig 

1w.74.7; 

ateggiggtaggValvflFflgVggit

MOMMIgggIggigagtgatag11

MIPARMMEEHM§§§Elnliailtil

-lign

Vggftriggwilir:ggifVOgng5WitgfariFY

tgaMTOMItahlaigrgEIWIOIV

§E§U§i@REEiEkiggCOUE@Wiffaiag

Incometaxesnot withheld 3 

°

rd000 d 

a444 

-aaa 

A4Mmr* 

tggge 

v..4.1A71 

efl 

0 eas 5 i ig ti tn 1.220 g 

. 

. 

2 

..4NEenz2--hiliAim.s.gpapg 

 g. Emmzx 

11114 

x nrOgKa#*=g0A1s4mAgireOg804i 

taida

? m4m 4Imam TomE 

g 0,0 r m° e 0A48 15 

V lte'52te-PQ W410.37

a—tt=digign ,E9E2=flt.-Onpitg4

yZ8f2A*5.COPPWWCDOMkgq-alA0 aaSedaiga)

0 0 q mm 

2 

a 

w3o4Zd44PW 

zEki,2 

iXg18 

a' gr?..5g:

REPORT OF CO/vIIVIISSIONER OF INTERNAL REVENUE 

N MM .MW 0t..000101 COMMCCIDOMMt-MOMM.MMN.MMMI■ M.M 

tt 44 4•414.1!44444444444g4444457.: 4 444044 

:ay 

Vag 

OgnIKVLIUOIVIkMgggliggOMM 

FREMORREEHRFIRMAEMiEnlnIgNRE 

gglEW11401ElgggtaggM55g4g5s 

maRc

g'WV:411g0iMgagigftlIKEIggaggl=i 

OggiriggggainggniagILWiagaggi 

WiRgkEg55MAARgMnEXRUMFARHE 

, ? caR3aot-RoSaoglowcov2SRotommc‘smv.mo9. drZ.44Sainiaill.:c4.4.dgf,6”4"4ciA(0(44. -4c64 '1 t? ; I" 1 
STATISTICAL 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

,=.==NO.WC,-..001MNCM=MCOMNI--•e..1--NO W. 

d.4o61--ioidd.41.6.4dddcidd&i.:doiddda ■ ddd,-;d 

42v 

WfVtgiigadOfiligagiaggn4fgaW:4 

kriatgatT:ggfiggigigalWaggVatigg 

UMHRRERMFORIOMMEAMIER@IiRiE 

-7- 

ggnqigifigignigagrtaatiglikaggC4 

WalatIggriagitagtagtagaggia 

MEiAingliaMigninniREMERgURRI5 

idt 

rnmmocd.m...dmm.adv 

ei.e"! 

4t.) 

TCmt 

 uidrimidd4'nit-:dd.4eit“6t:4 

7 

gtiggVaralsglaWIgal‘gafliglia

Elinigg3grEignni§MAREUMOranng 

•-C NN 

gt0

EINengEMEMEMEMEntigninanER 

,74,16MOlg7glitaggigfigtrainctiiii6 of d d aa 

E1 0 pr. 

 t g2 j_ 

IV.041S E P,Mrglmns1 /32 4°1 16" 

EattrallNkaintimipl iinAigi 

2 .4.goiN p. „<mm4JV _pluZzacc ou0E-.4—PeNg4400 

96 

t.0- ,40= ,n0S00N0aNMa4 NO.CM.n.aaaca.Cao,Coba 

t,;.idd 6 • '-:olddo,31do,old7,Liddy24,4oidAdoico,do

Ri4EMMEMMOMMEINMarii

tea a a 

giqViggggl4gigElliggg601

ag0WW5716alittaagOg

a 

ElagagelaiiiMaglgiqr41

MCiagililignag660105V

EBIREUMUIEEEMSPAMMR

, - 

d, 00 ,..DOC ORNCtM.C1 14 MOMCW$' .0 M0C 00

.04cidaltdddrick646.64eid.6dd4d.-;4.

' I 

1 ,_, 

,i

IgggigitangagatgaitisInitg

illgailliRMEAMMHIEUgg

rg a4- 2- -;.a a4..rar. .g.dr aag- cla 

- 

Iga,.

aggIgg46WalggiagingaMa

RHEMMEnWAUEHOIMIgnolrg E

;:a ”Td a,,r-r4.42; d4 a.c.i- .F26 

. 

5 

eh 

re 

_ 

.4-0..A, 

4, 

g 

g 

06304Z44 

Al;,W.0.„ 

_ 

K 

 -__ 

m 

go.tAxg.40awzoam..4-4p;5z04, 4111m4.4 

- 

Q 

77 

bei gtv-52.1 

Xl.pgaao 

ME.,,, 

r,e4 

_ 

.E1 22 1V,t4241-gig

2 

CleT'' 

co 

4..4 

TABLE 2.

— Comparative internal revenuecollections,fiscal years 1952 and 1953, byregions, dis ids, Statet 
98 STATISTIC

REPORT OF COMMISSIONER OF INTERNAL REVENUE Total internal revenuecollections 

00[0. 0. 015 MaerONI CWN0a0MWNWONC:020.-1.-tN050,b.f 

444 ,t,d.4.6O'dmi , 444444-0.4d4Ficiduic6 7. 44m 

'' II 

5Wagtriana:I6gtiggiligalitgi 

VS:WW‘gagnariinagF50agagig 

WMAREREMARMMERMIWEREIUM5 

-..W.-7 4aZat or4a 44 .,r 4 

i Zce

Wes- , .r.

VOIFIalgV101E46.4aliaaCtifilaggi1 

Vggigflaitilgg505050titaaigFIg 

FAELUMRREIFILMEME5iMMOUngEi 

.,, , 44.4 4aa 064a- 4,4 a .4 

Totalinternal revenueotherthan 

income,profitsand employmenttaxes 

4• tg 

Ng 

era 

..tt.,4rici,ith

opacaRe0R.a.roc0valoSmaiSamo.0.-icacow!-er: 

rtir:1 m7

_ ,...... 77 . In 

F., 

et ec

17.7&-;4:iegmgvigriaggggLilgg:.

4$10060fgagligilngiggaigalaftWo. 

WitiMEE23NannollInannEVERSRROP 

.411g4gw57.w4 . _ . t961 

fflgOVPitglar 

agigragglgingggOOMMIMMA 

RIREP.WiiiiRtinglinnRiaigEliallEE 

.

lfkg4gPgamOgg4=44 , 

Corporation incomeand profits taxes 2 

,. 2 Ng 

4°0 

..2.,qm....a,. . Re....,P.R,,, 

.-..ric,1g 5;toscr rirorl.6 1

o..,.....a. 

,, :t 1 ,4 79 

61 29

.., 

ggViggtgW1WW1galgOlMigliM 

FigagnWiggliggliiigggallgiigG0 

HEEME9Ai0E§FilliaRilgiNaallang 

, , 4a a 4 

es Le

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102 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

281223-44--4 

5961 

a a qmoiv ia

a aregoggagyova 

PR@PAHRMWEHRi 

,f; ag•4-a i.Ta ,,,- p „a, ,.. 

05 9 I ' I9 919 '

940,083,528 

t E ' M 008 ' 596 '

d ui ios qtt ia

i ilgiVOgainac EP: 

MiONUARtaririRra 

- e, 

n O 399 ' ' Ea

'en 1 63 164 '

5,345,808,261 

o p qo ae

raAnA4RMEINFA 

.... r.410.6TEIM6.11 

M:icW-1-1-r 

21 5, 491, 970 

as ea ' 315 t

e ' t05s 'a 1 66

AugustSeptember 

MEL25@iREHREFEMU 

g ggiggElgaggligi ?: ageaLa ggegg ,•-- 

91 '6 '152 996 

998 126' 6' 39

'9 z e 's on 811 '

i 

gREMIORMWMIMI 

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51ggliggigigigggfl - ggagga,:a 

- 1 99 '691 ' 080 

619 ' 999 9 ' 99

4 3£ ' 91 169 ' 109 '

r di S

MiMIEN2M79.4§1FM 

a g ggig54Wg6glIgi g a -ge..-r t .72egg Na 

eoz a ' e L3£ ten 310 ' 11 ' 6

3,843,987,976 

Sourcesof revenue 

MiscellaneousInternal revenue-Continued 

Miscellaneoustaxes: 

Narcotics, includingmarihuanaand special taxes Adulterated and processorrenovated butter,and filled cheese Coconut and othervegetableoilsprocessed Admissionstotheaters,concerts,etc 

Admissionstocabarets,roofgardens,etc 

Club duesand initationfees Coin-operated amusement devices 

Coin-operated gamingdevices Bowlingalleys,pool tables,etc 

Wagering,occupational Wagering,excise 

Telephone,telegraph,radio,cable,leased wires,etc Local telephoneservice 

Transportationof oil bypipeline Transportationof persons,seats, berths Transportationof property Leasesof safedeposit boxes Sugar Diesel oil Firearmstransferand occupational taxes 

All other, includingrepealed taxesnotlisted above 

Total miscellaneoustaxes Total miscellaneousinternal revenue 

Grand total,all collections 

4961 

t Min

9 518 '

99 IE F T 139

9 ' ES9' 640 

'1 521 ' '051L93 

66 Us ' 891 2.59 1 NE ' 969

21 3 ' 619( '959 '89L 499 

1 

2,063, 046, 616 

i Ant

$358,916, 761 

36,380 

96 '8 me on '

1 09 N ' 001 R

09 18' 3621

'619 TN ' 612

4, 570, 826, 085 

17,179, 227 

861 ese ' t ' rr

v Tpd

Itz 

1192 ot ne t

654 129, 65a 

'KR 169 , ' 662

"a0 5LL 

'1 999 958' 839

4 ' 738 ' 121

1 ' 6996 ' 60 ' 869

3 ' 659 ' 495 ' 399

w icie T

$8, 171, 029, 539 59,132 

9 1 ' 11 'ego ' IL9 3 ' '869hso Tn '

327, 085, 641 

91, 058, 383 

8 ' 159 ' 969

1 8I ' t11201

'e 931 4 ' 59 " 056

d ge oun L

9CL 

1- 19 1 ' 09

, 1 10 ' ,1 55 ' 961

'669 '310 880

4, 918, 127 67, 157, 33, 6 911 

RH , ROI 308 

o 'eg 163 LEI ' '9 

9 490 ' 900 ' ' 101

l amue S

350 1, 170, 119 

24, 471 

109 I ' H ' 069

n8 t e ' zee W

'1 39 '91 89

'1 11 51211 6 55

1, 1 48, 427, 630 36,689, 486 

I ow ' 'ma ' 10 

Sourcesof revenue 

Corporation incomeand profitstaxes: 

Regular 

Exempt organization business incometax 

Total corporation incomeand profitstaxes 

Individual incomeand employment taxes: 

Income taxnot withheld Withheld taxes: 

Income taxand old-age insurance 

Railroad retirement 

Total withheldtaxes 

Unemployment insurance 

Total individual income taxand employment taxes 

Miscellaneous internal revenue: 

O 

O 

ti 

to 

0 

0 

N 

Cd 

tko to. 

PI 

0 

CC 

D3 

E 

"ra '03 

PI 

cei 

0 

0 

-C 

;1) 

C) 

0.3 O 

• 

to 

DC 

0 

DC 

C 

C 
102 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL T

281223-54-8 

gi gtuma re

1 

ERMAHMSAEERS 

ar,%,ra MiVtgai44077,1 4 saie.4 ,.,-; 0, „„ 

903 I ' 9 9 1 91

8 01 ' 803 ' 898

4 8 ' '49 003 5 ' 69

N :00AO 11 .1947

MnEg§§§gganniit

lag 

1 flgaV.Vgagag,s grig sc! 7

,.Ta 0, ..:0;a

4rA- e-r 

51 0 '699 ' us 48 2 1' 63 169'

5,345,808,261 

October 

REM20.5IWEgraite'g 2

1 tiingt05515M15g 4 

0, gg`W-N6^ 

VIZ NI 9L6 '

6 'L9 68 0 ZiL '

8 L ' '00 448 ' 861 

s e id =q ra

I gillg5446460481 .q 

PARWIEMRIglEgAM 

„„1, 

e ----, m mA'RM - 

1 69 E ' IL ' 899

'998 6 PE 396 '

'2 '823 082 1 ' 18

August 

a 

gRIMSEggiEiRIRMN, 

,-*,..- 5GWVAIVIAMM sp-.4g7,_w-r 

1 99 696 ' ' ORO

'818 999 969'

5,396,631,601 

t Ali

F: reat&g

.1T4HHH.V.M.4§Ean 

1410iVa g _ -.._ . -.K „-cset.i-..- 3-. ,.6 .7 4-4 .4-- 

03 8 1 36 LEE '

947,042,419 

3,843, 987,976 

Sourcesof revenue 

Miscellaneousinternal revenue-Continued 

Miscellaneoustaxes: 

Narcotics, includingmarihuanaand special taxes Adulterated and processorrenovated butter,and filled cheese Coconutand othervegetableoilsprocessed Admissionstotheaters,concerts,etc Admissionstocabarets,roofgardens,etc Club duesand initation fees Coin-operated amusementdevices Coin-operatedgaming devices Bowlingalleys,pool tables,etc Wagering,occupational Wagering,excise Telephone,telegraph,radio,cable,leased wires, etc Local telephoneservice Transportationof of bypipeline Transportationof persons,sea ts,berths Transportationof property Leasesof safe deposit boxes Sugar Diesel oil 

Firearmstransferand occupational taxes All other, includingrepealed taxesnotlisted above 

Total miscellaneoustaxes Total miscellaneous internal revenue 

Grand total,all collections 

1261 

g ;sun

9 318 '

93 889 ' 218 ' 946 '

5,683,320,059 

'1 4 'LE oet £93 '

66 a ' 821 E

Z9 L 692 ' 69 ' 9

626, 758, 854 (-1,132, 495) '3 290 960' 919'

89 ,68 

3 6 

92

w e L I 

$358,916,761 36,380 

I 92 8 826 ' 041 '

21 W 342 1 3 00

4,519,981, 493 50,844,592 

der 1 6L 433 '

t hg ' 1ms t sso 

4, 738,553, 412 

09 1 

14 13 

5

y [lad

85 838 '

NM II ' V843

99 MI 1 9 ' 82

8 42 62 ' 1 Mt '

1, 686, 825, 826 3,083, 772 

t 938 ' I ' IL

1 ' 6996 ' 60 869 '

2,529,426,882 

4

152

582 

NPI 9 11

$6,171,029,539 59, 132 

.1 88011 TM ' I 

2,

698,047,241 

16 890 ' 286 '

438 289 ' 159 '

's 149 299 '

t 'M ttL '

3,

125, 462, 920 

) 

February 

9E4 

4 E t 1 Oa

1. 40 4 ' 32 ' I 961 

688 ' tIO880 

4,

988, 1 33,216 

67, 157,911 

5,

05E 291, 1 27 

168, 700, 802 

9 ' '89000 410 1

gAiMilfIgUI 

ggtsig.T 4qggg 

, ,„ , 

f Lmttue

$501,170, 1 19 24, 471 

105 661' 062'

98 t 9991 MC '

1, 144,139, 472 4, 288, 158 1, 148,427,630 

36,689, 486 

880 '889 ' 4 44

1. 2.51RUIEHR4

i4gglriliggt . rg 

Corporation incomeandprofitstaxes: Regular Exempt organization businessincometax 

Total corporationincomeand profitstaxes 

Individual incomeand employment taxes: Incometaxnot withheld 3 

Withheld taxes: 

Incometaxand old-age insurance Railroad retirement 

Total withheld taxes 

Unemployment insurance 

Total individual income taxand employment taxes 

Miscellaneousinternal revenue: 

ro 

5 

O 

ti 

0 

o) 

co 

a. 

4 

E 

O 
9U 1 ' L9

'T ew net d

272,403, 357 

'8 488 149 '

% '383 998

'91 'LM 360 'L 63 6 ' 989

'It 869 ' 961

R

ANNHARMogiggA

. gilliglgrW

..._ ,..

,.. r;w4F

2L6 ou '

. 'arr IITT 

esz 111 ' 08' 19

8, 119, 097 16, 6 13, 580 

3, 021, 376 

9,

286, 471 

Ls two ' ga '

,i eigtOgg=461

gPM4Elrinn

.4z4,,,, ggorg

IS % 910

15R 111 '

'ssz no zw I 

6, 720, 568 

17, 050, 630 

3, 455, 913 9,236,102 

36, 463,213 

RUPEEELIMig

aggW17-100

-7gKer; 

iete4 g

688, 618 610, 157 

1, 059,428 674,855 

23245, 241, 808 242,799, 136 

5,040, 133 

15, 252, 690 

5, 068, 145 7, 805,077 

29 ' 991 ' 940

siggKa

IREgig§gaRHER

r ggggIn

.... 

Is-g

13,217, 1M 

38, 353, 051 

7, 608, 940 

13, 859,962 73, 039, 052 

EUMERRggr-ME2RW4 

1. MOK 4gMagge7 64 ti gliag.w 1 

13 3 

96 OLL 

3 ' 'ILI866 Cl ' US ' CM

'93 al 

LLL 4L1 

1so 

'sz 826 'teT , VOL 99 1 ' 18

2 ' 192 ' 968

LPL ' 801

CS ' 969 ' 029

1 369' 118'

433 

.9 9/

545, 910 

1,510, 834 

'133 IE 'L MZ 

11, 617,592 

29, 007,746 

7, 663, 879 

13,123, 480 

19 16 ' t L69

igEgRgiUMRARMkg9 

g tAttigg4440gri5g g 

geTa Kggg e^ * a4 

50, 943 

23 1 

888, 170 

22, 291, 431 

3,

491,169 

2, 015,807 

81, 341 

166, 774 

46, 314 51,316 

741, 828 

a 290, 060 

24, 350, 288 

2,

089,702 

21

573

337 ' 

t 

s

tig , - 

E 0,

8 

Va

ct

n 

..§ 1 

irlii 

ti 1 

t-

. .r:sesi 

'E'si .. 

s t.c„,,„4 .s2-sts 1 ,

.. 

;8. 

S8894.4.,1 - 9 8 a

72, bornap- -clE=

24 2 § . awas1 5 Ai gc„,

Igh! 

- - 4746.58. mg.‘11x

1 = FI'22 1.0 23° 

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A4 

°u;40,!°141. 

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oi 3 . 2 .,fl f: glaalgW4P 

11 g 4411 E'!" AngV 4 APT

22

R

cc% jagrce pdo-icnOch3gg

c4 - , hie, leased wires,etc 

104 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

O 

0 

7 

0 

C.) 

g) 

cc 

s. 

O 

pO 

V 

ti 

P", 

O 

ti 

R( OUte 

FRgERgg 

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21 '0 'vsl 4, 901, 993 

2, 620 

532, 575 

2 at ' t ' es

l'e 

gOngelegig155tgii 

RgEREPIEE5gIngIRF 

c,..fggc4 -:‘,T.4 c,.6a. 

,1 D 65

d' eglg 

MEW; 

I M6 ' 9 6991 I

5, 262,286 

18, 1 59 

524,952 

908 see '

nRi..7431ggnORgM 

611ggitigigqggti 

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1.7W 

, 5, 

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21 2 281 OBI '

49 111 8

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MRENEggEERFini 

,71r; 

re- aea?: t 

I March 

r 

RHEUM 

g 

gill .. 

I EL ' 13986) '

5, 128,073 

39, 163 

715, 405 

2 us ' s ' aI 

tagt

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g, cr :fgf.e .5- cd- K.: 

a qa eni St

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 I 892 a . MC 

L09 9 ' 196 684'

6 ' 410 963 '

I or a d

K t ' of

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,., „, .6- .Fr , -,-, 

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69 6 33' 0

6 2 ' 68

9 ' 69 0 1 ' 899 3' 9E 991 ' 1

g

tggtgWbillgag4; 

flIEEREgRgEgERUP 

, n;F:g;f4 4 og'4NSourcesof revenue Miscellaneousinternal revenue-Continued Tobaccotaxes: Cigars (large) Cigars (small) Cigarettes (large) Cigarettes(small) Snuff Tobacco(chewingand smoking) Cigarettepapersand tubes Leaf dealerpenalties,etc Cigaretteand cigar Haw taxes Total tobacco taxes Documents,other instruments,and playingcards: issues ssues and transfersof capital stock,deedsof conveyance,etc Silver bullionsalesor transfers Playingcards Total documents,other instruments,and playingcards Manufacturers' excise taxes: Gasoline Lubricatingoils Matches 

Pistolsand revolvers Tiresand tubes 

Automobile trucksand buses 

Otherautomobilesand motorcycles Partsand accessories forautomobiles 

Radiosets,phonographs,televisionsets,components,etc Phonograph records 

Musical instruments Mechanical refrigerators,airconditioners,quick-freezeunits,etc Sportinggoods Fishingrods;creels,etc 

Electric,gas,and oil appliances Businessand storemachines Cameras, lenses,and films Electric light bulbsand tubes 
106 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL TABLES 107 

TABLE 4.-Summary of internal revenue collections, years ended June 30, 1952 

and 1953, by sources 

Sources of revenue 1952 1953 Increase or 

decrease (-) 

Corporation income and profits taxes: 

Regular I $21,466, 872, 711 $21, 594, 250, 955 $127, 378, 244 

Exempt organization business income tax 37, 308 264, 251 226, 943 

Total corporation income and profits taxes 21,466, 910, 019 21, 594, 515, 206 127, 605,187 

Individual income and employment taxes: 

Income tax not withheld J 11, 545, 060, 075 11, 603, 942,106 54, 882, 031 

Withheld taxes: 

Income and old-age insurance 21, 313, 071, 984 24, 748, 526,178 3, 435, 454,194 

Railroad retirement 620, 621, 752 623., 989,408 8, 347, 656 

Total withheld taxes 21, 933, 693, 736 25, 377,495, 586 3, 443, 801,850 

Unemployment insurance 259, 616, 432 273, 181, 565 13, 565,133 

Total individual income and employment taxes_ 33, 738, 370, 243 37, 254, 619,257 3, 516, 249, 014 

Miscellaneous internal revenue: 

Estate tax 750, 590, 517 784, 590,189 33,999, 672 

Gift tax 82, 556, 471 100 604, 247 24,137, 776 

Alcohol taxes: 

Distilled spirits (imported, excise) 187, 473, 677 204, 793, 990 17, 315, 413 

Distilled spirits (domestic, excise) 1, 402, 251, 860 1, 641, 932, 625 239, 680,165 

Distilled spirits rectification tax 31, 812,387 26, 845, 478 4, 966, 909 

Wines, cordials, etc. (imported, excise) 3, 753, 216 3,955, 808 202, 592 

Wines, cordials, etc. (domestic, excise) 68, 620, 510 76, 578, 756 7,958, 246 

Rectifiers; liquor dealers; manufacturers of 

stills (special taxes) 15, 249, 452 16, 271, 768 1,022, 316 

Stamps for distilled spirits intended for export. 28,459 23, 900 (-4, 559) 

Case stamps for distilled spirits bottled in 

bond 1, 285,096 1,020, 136 (-264, 960) 

Container stamps 12, 079, 850 13, 348, 805 1, 268, 955 

Floor taxes 93, 808, 383 27,956,121 (-65, 852, 262) 

Fermented malt liquors 727, 603, 681 762,982, 757 35, 379, 076 

Brewers; dealers in malt liquors (special taxes). 5, 148, 218 6,215,034 60816 

Total alcohol taxes 2, 549, 119,689 2, 780,925,178 231, 805, 489 

Tobacco taxes: 

Cigars (large) 44, 760, 432 48, 276, 904 1, 516, 472 

Cigars (small) 49, 570 48, 786 (-784) 

Cigarettes (large) 12, 261 7, 284 (-4, 977) 

Cigarettes (small) 1, 474,059, 557 1, 586, 775, 030 112, 715.473 

Snuff 4, 795, 919 3, 821, 294 (-974, 625) 

Tobacco (chewing and smoking) 22, 817, 336 17,244, 296 (-5, 573, 040) 

Cigarette papers and tubes 913,195 716, 707 (-196, 488) 

Leaf dealer penaltiestc 1,630 1, 202 (-428) 

Cigarette and cigar Hoer taxes H 17, 752, 482 19, 459 ( -17, 733, 023) 

Total tobacco taxes 1, 565, 162,382 1, 654, 910, 962 89, 748, 580 

Documents, other instruments, and playing cards: 

Bonds, issues and transfers of capital stock, 

deeds of conveyance, etc 77, 555,683 82, 640,112 5, 084, 429 

Silver bullion sales or transfers 86, 374 96, 967 10, 593 

Playing cards 7, 353, 364 7, 582,150 228, 786 

Total documents, other instruments, and 

playing cards 84,995, 421 90, 319, 229 5121 808 

Manufacturers' excise taxes: 

Gasoline, including floor tax 713, 174, 163 890, 678, 570 177, 504, 407 

Lubricating oils 95, 286, 094 73, 320, 885 (-21, 965, 209) 

Matches 8,031, 496 it 949, 596 918,169 

Pistols and revolvers 1,171, 890 982, 809 (-189, 081) 

Tires and tubes 161, 327, 645 180, 046, 704 18,719,059 

Automobile trucks and buses 147, 445, 304 210. 032, 385 62, 587,081 

Other automobiles and motorcycles 578, 149,013 785, 716, 352 207, 567, 339 

Parts and accessories for automobiles 164, 135, 450 177, 924,217 13, 788, 767 

Radio sets, phonographs, television sets, 

components, etc 118, 244, 074 169, 382, 799 41,138, 726 

Phonograph records 6, 880, 340 7,617,173 736,833 

Musical instruments 9, 412, 292 11, 048, 217 1, 635,925 

Mechanical refrigerators, air conditioners, 

ouick-freeze units, etc 57,969,730 87, 424, 354 29, 454,624 

Footnotes on p. 110. 

TABLE 4.-Summary of internal revenue collections, years ended June 30, 1953 

and 1953, by sources-Continued 

Sources of revenue 1952 1953 Increase or 

decrease (-) 

Miscellaneous internal revenue-Continued 

Manufacturers' excise taxes-Continued 

Sporting goods $13, 644, 356 $11,287,997 (-$2,356,359) 

Fishing rods, creels, etc 2, 8.57, 101 4,556,615 1, 699, 514 

Electric, gas, and oil appliances 89, 544, 458 113, 389, 928 23, 845, 472 

Business and store machines 48, 515, 237 50, 258, 538 1, 743,301 

Cameras, lenses, and films 33, 765, 542 29,401,468 (-4, 364, 074) 

Electric light bulbs and tubes 30, 736,168 36, 683, 748 5, 947, 590 

Firearms, shells, and cartridges 10, 679,057 12,147, 554 1, 468, 497 

Mechanical pencils, pens, and lighters 4,880, 106 11.938, 188 7, 058, 082 

Electrical energy 63, 093,612 (o) (-53,093,612) 

Total manufacturers' excise taxes 2, 348,943, 116 2, 862, 788, 097 513, 844, 981 

Retailers' excise taxes: 

Luggage 90, 799,198 95, 750, 300 4, 951,102 

Jewell"' 220, 338, 833 234, 659, 495 14, 320, 662 

Furs 51, 436, 075 49, 922, 858 (-1, 513, 217) 

Toilet preparations 112,891,829 115, 676,380 2, 784, 651. 

Total retailers' excise taxes 475,465, 936 496, 009,033 20, 543, 097 

Miscellaneous taxes: 

Narcotics, including marihuana and special 

taxes 914, 910 929, 259 14, 349 

Adulterated and processed or renovated 

butter, mixed flour, and filled cheese 3, 489 6, 969 2, 480 

Coconut and other vegetable oils processed 15, 365,486 17, 982, 784 2, 617, 298 

Admissions to theaters, concerts, etc 330, 816, 852 312, 830, 598 (-17, 980 264) 

Admissions to cabarets, roofgardens, etc 45,481898 46, 691, 085 1, 202,187 

Club dues and initiation fees 33, 591,630 36, 829,017 3, 237, 387 

Coin-operated devices 18,823,100 10 504,613 (-2, 318, 467) 

Bowling alleys, pool tables, eta 3, 596, 530 3, 410, 594 (-185, 936) 

Wagering, occupational 973,197 973,729 532 

Wagering, excise 4, 371, 869 9, 501, 645 5, 129, 776 

Telephone, telegraph, radio, cable, leased 

wires, etc 395, 433, 541 417, 939, 502 22, 506.961 

Local telephone service 310, 336, 743 357, 933, 072 47, 596, 829 

Transportation of oil by pipeline 25 881, 146 20 377, 560 1, 496,414 

Transportation of persons, seats, berths 275, 173, 735 287, 407,846 12, 234, Ill 

Transportation of property 388, 589, 269 419, 603,641 31, 014, 372 

Leases of safe deposit boxes 10, 210, 796 10, 368,153 157, 357 

Sugar 78, 473, 191 78,129, 860 (-343, 331) 

Diesel oil 7,137, 799 15, 090,996 7, 953,197 

Firearms transfer and occupational taxes 28,911 7,155 (-21, 756) 

All other, including repealed taxes not listed 

above 1, 290,674 646, 891 (-613, 783) 

Total miscellaneous taxes 1,947, 471, 766 2, 061, 1133, 991 113, 692, 225 

Total miscellaneous internal revenue 9, 804, 305, 298 10, 837, 400,927 1, 03„ 095, 629 

Grand total, all collections 65,009, 585, 560 69, 686, 536, 389 4, 676, 949, 829 

COLLECTIONS FOR CREDIT TO TRUST ACCOUNTS (INCLUDED IN TABLE ABOVE) 

Distilled spirits (domestic) $32,111 $367 (-$31, 744) 

Distilled spirits rectification tax 

Wines (domestic) 

Manufactured tobacco 

Coconut oil 160, 832 25, 623 (-135, 209) 

Total trust fund collections 192, 943 25, 990 (-166,953) 

Footnotes on p. 110. 
108 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 109 

TABLE 5 -Summary of internal revenue receipts by principal sources, fiscal years 

1916 through 1958 

Income, profits and employment taxes is 

923 

924 

925 

927 

928 

929 

930 

931 

932 

933 

934 

935 

936 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

948 

949 

950 

951 

952 

953 

916 

917 

918 

919 

920 

21 

22 

Year Individual income and employment taxes 

845, 426, 352 

879, 124, 407 

911,939 911,939,911 

882,727, 114 

1,095, 541, 172 

1, 146, 844, 784 

833, 647, 798 

427, 190, 582 

352, 573, 820 

419, 509, 488 

527, 112, 506 

674, 464, 353 

I, 357, 486, 054 

2,028, 972,108 

1, 769, 262, 682 

1, 815, 538, 352 

2, 343, 511, 587 

4, 448, 162, 234 

8, 128,637,023 

19,999, 377,847 

20, 813, 490, 787 

20, 405, 363,840 

21, 367, 662, 091 

23, 379, 123, 052 

20, 527, 934, 679 

19, 797, 882 768 

26, 624, 787, 948 

33, 738, 370, 243 

37, 254, 619, 257 

Corporation income and profits 

taxes 

916,232, 697 

1, 094, 979, 734 

1, 308,012, 533 

1, 291, 845, 989 

1, 235, 733, 256 

1, 263, 414, 466 

1, 026, 392, 699 

629, 566, 115 

394, 217, 784 

400, 146, 467 

578, 678, 359 

753,031,626 

1,088, 101,089 

1, 342, 717, 850 

1,156, 280, 509 

1, 147, 591,931 

2, 053, 468, 804 

4, 744, 083, 154 

9, 668, 956,103 

14, 766, 796, 477 

16, 027, 212, 826 

12, 553, 801, 987 

9, 676, 458, 680 

10,174, 409, 834 

11, 553, 669, 234 

10, 854, 351, 109 

14, 387, 569, 403 

21, 466, 910,019 

21, 594, 515, 206 

Total income, 

profits and employment taxes 

$124, 937, 253 

387, 382, 344 

2, 852, 324, 866 

2, 600, 783,903 

3, 956, 936, 004 

3, 228, 137, 674 

2, 086, 918, 465 

1, 691, 089, 535 

I, 841, 759, 317 

1, 761, 659, 049 

1, 974, 104, 141 

2, 219, 952, 444 

2,174, 573,103 

2, 331, 274, 428 

2, 410, 259, 230 

1, 860, 040, 497 

1,056, 756, 697 

746, 791, 404 

819, 655, 955 

1, 105, 790, 865 

1, 927, 495, 873 

2, 445, 587, 143 

3, 371,689,957 

2, 925, 543, 170 

2, 963, 130, 283 

4, 396, 980, 391 

9,192, 245, 387 

17, 797, 593,125 

34, 786, 174, 324 

36, 840, 703, 613 

32, 958, 985, 827 

31, 044, 120, 771 

33, 553, 532, 885 

32, 081,603, 913 

30, 852, 233, 877 

41, 012, 357, 351 

55, 205, 280, 262 

58, 849, 134, 463 

TABLE 5 -Summary of internal revenue receipts by principal sources, fiscal years 

1916 through 1953-Continued 

Year Alcohol taxes Tobacco taxes Manufacturers' excise taxes a All other taxes Total Internal 

revenue receipts 

1945 62,865, 790 $932, 144, 822 $782, 510,640 $2, 292, 107, 635 $43, 800, 387, 576 

1946 2, 52, 184. 26 1, 165, 519, 283 922, 670, 741 2, 421, 941, 159 40, 672, 096,998 

1947 2, 474, 762, 398 1, 237, 768, 302 1, 425, 259, 662 2, 147, 183, 534 39,108, 385, 792 

1948 2, 255, 326, 754 I, 300, 280,153 1, 649, 234,053 2, 206,82, 007 41,864,542,295 

1949 2, 210, 607,168 1, 321, 874, 770 1, 771, 532, 723 2, 280, 968, 532 40, 463, 125,019 

1950 2, 219,'202,085 1, 328, 464, 346 1, 836, 053, 455 2, 214, 951,467 38, 957, 131, 768 

1951 2, 546, 807, 925 1,380, 396, 001 2, 383, 676, 698 2,392, 718,504 50, 445,688, 315 

1952 9, 549, 119, 689 1, 585,162 382 2 348, 943,116 2, 507, 933,123 65, 29, 585, 560 

1953 2, 780, 925,178 1, 654, 910,962 2,862,788,097 2, 647, 492, 253 69, 686, 535,389 

$67,943,595 

180, 108, 340 

$56, 993, 658 

207, 274, 004 

Estate and 

gift taxes 

$6, 076, 575 

47, 452, 880 

82, 029, 983 

103, 835, 563 

154, 043, 260 

139, 418, 846 

126, 705, 207 

102, 966, 762 

108, 939, 896 

119, 216, 375 

100, 339, 852 

60,087, 234 

61, 897,141 

64, 769, 625 

48, 078, 327 

47, 422, 313 

34, 309, 724 

113, 138, 364 

212, 111,959 

378, 839, 515 

305, 547, 766 

416, 874, 065 

360, 715, 210 

360, 071,187 

407,057, 747 

939, 540, 288 

447, 495, 678 

511, 210, 337 

643, 055,077 

676, 832, 302 

779, 291, 074 

899, 345, 444 

796, 537, 914 

706, 226, 538 

729, 729, 837 

833, 146, 988 

891, 284, 436 

Year Alcohol taxes Tobacco taxes Manufacturer ' 

excise taxes 1 

Total internal 

revenue receipts All other taxes 

1916 

1917 

1918 

1919 

1920 

1921 

1922 

1923 

1924 

1925 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

Footnotes on p. 110. 

$247, 453, 544 

284, 008, 513 

443, 839, 25 

483, 050, 854 

139, 871, 150 

82, 823, 429 

45, 609, 436 

30, 358, 086 

27, 585, 708 

25, 904, 775 

26, 452, 029 

21,195, 552 

15, 307, 796 

12, 776, 728 

11, 695, 268 

10, 432, 064 

8, 703, 963 

43, 174, 317 

258, 911, 333 

411, 021, 772 

505, 464, 037 

594, 245, 086 

587, 978, 602 

587, 799, 701 

624, 253, 156 

820,056, 178 

1, 048, 516, 707 

1, 423, 646, 456 

1, 618, 775, 156 

$88, 063, 948 

103, MI, 592 

156, 188, 660 

206, 003, 092 

295, 809, 355 

255, 219, 385 

270, 759, 384 

309, 015, 493 

325, 638, 931 

345, 247, 211 

370, 666, 439 

376, 170,205 

396, 450, 041 

434, 444, 543 

450, 339, 061 

444, 276, 503 

398, 578, 619 

402, 739, 059 

425, 188, 897 

459, 178, 895 

501, 165, 728 

552, 254, 145 

568, 181, 988 

580, 159, 206 

808, 518, 444 

698, 076, 891 

780, 982, 216 

923, 857, 284 

988, 483, 237 

$4, 218, 979 

776,078 

36, 636, 607 

79, 400, 266 

267,968, 579 

229, 397, 837 

174, 361, 288 

185, 117, OM 

200,921, 721 

140,877, 326 

150, 220, 488 

66,850,109 

51, 951,694 

5, 723, 791 

2, 676, 261 

149,744 

96,195 

243, 600, 368 

385, 291, 214 

342, 144, 686 

382, 716, 142 

449, 853, 630 

416, 753, 516 

396, 891, 003 

447,087, 632 

617, 373, 372 

771, 902, 259 

504, 746, 434 

503, 461, 802 

$48,049, 564 

27,949, 538 

162, 513, 263 

398,881, 981 

643, 359, 601 

645,935, 477 

480, 383, 664 

279, 459, 849 

297, 306,818 

201, 512,011 

195, 340, 420 

81,174, 968 

92,165, 870 

92, 937, 744 

100, 406, 288 

65, 251, 619 

46, 171, 256 

149, 224, 352 

870, 073, 432 

769, 187, 665 

324, 527, 086 

305, 707, 25 

317, 287, 205 

330, 465, 683 

337, 391, 665 

430, 563, 800 

821, MI, 660 

1, 274, 047, 519 

1, 733, 655, 377 

$512, 723, 288 

809, 393,640 

3, 698, 955, 821 

3, 850, 150, 079 

5, 407, 580, 252 

4, 595, 357, 082 

3, 197, 451, 083 

2, 621, 745, 228 

2, 796, 179, 257 

2, 584, 140, 268 

2, 835, 999, 892 

2, 865,683, 130 

2, 790, 535, 538 

2, 939, 054, 375 

3,040, 145, 733 

2, 428, 228, 754 

1, 557, 729, 043 

1, 619, 839, 224 

2, 672, 239,195 

3, 299, 435, 572 

3, 520, 908, 381 

4, 653, 195, 315 

5, 658, 765, 314 

5, 181, 573, 953 

5, 340, 452, 397 

7, 370, 108, 378 

13,047,868, 518 

22, 371, 386, 497 

40, 121, 760, 233 
110 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Footnotes for tables 1 through 5, pages 60-109. 

District designations prior to July 1, 1953, are io Separate figures on corporation and individual 

shown in parentheses. income and excess profits tax collections not available 

2 Includes corporation income tax, excess-profits for the years 1918 to 1924. 

tax under Excess Profits Tax Act of 1950, and excess n Beginning January 1951, withheld income taxes 

profits on Army and Navy contracts. and social security employment taxes on emplcyees 

3 Includes old-age insurance tax on self-employ- and employers are paid into the Treasury in comment 

. 

blued amounts without separation as to type of tax. 

4 Rate of tax varies with the total annual with- The figuresfor prior periods Mt been combine d 

drawal of proof gallons. accordingly in this table for purposes of comparison, 

6 Except watches retailing for $65 or less, and alarm tut are shown separately in previous annual reports. 

clocks retailing for $5 or less, 10 percent. n Includes munitions manufacturers' tax, excess 

Baltimore District includes Maryland, District profits on Army and Navy contracts. 

of Columbia, and Puerto Rico; Seattle District in- n For 1916 through 1932 includes taxes on sales 

eludes Washington and Alaska. under act of Oct. 22, 1914; manufacturers', con - 7 Includes tax on business income of exempt organ- sumers', and dealers' excise taxes under the war 

Bations. revenue and subsequent acts (except soft drink 

Includes collections from Alaskan Railroads tax taxes), and all taxes paid by manufacturers of and 

in the amount of $8,087 for 1952. The Alaskan dealers in adulterated and process or renovated 

Railroad tax was repealed, effective for taxable years butte!, mixed flour, and filled cheese. For 1933 and 

ending after June 10, 1952. subsequent years includes manufacturers' excise 

Repealed by Revenue Act of 1951. Collections taxes (act of 1932, as amended) except soft drinks. 

for fiscal year 1953 amounting to $158,328 are included 

under "Miscellaneous taxes, all other." 

TABLE 6.— Internal revenue tax on manufactured products from Puerto Rico, fiscal 

years 1952 and 1953, by objects of taxation 

Articles taxed 1952 1953 Increase or 

decrease (—) 

Distilled spirits, excise tax 

Distilled spirits, rectification tax 

Cigars, large: 

Class A 

Class B 

Class C 

Class D 

Class E 

Class F 

Class G 

Cigars, small

ll m Cigarettes, sma

Chewing and smoking tobacco 

Total 

$14, 389, 540 

436, 090 

218 

208 

3 

2,012 

,682 

585 

79 

1 

212 

$15, 251, 541 

430, 607 

6,6006 

259 

13,384 

4, 426 

486 

50 

526 

446 

$862, 001 

(-5, 481) 

(-1) 

(-21M 

6,388 

61 

11,744 

(— 

744

99) 

( -99) 

(-364) 

446 

14, 833, 517 15, 708,331 874, 814 

Nora.—Stamp sales for Puerto Rican tobacco and liquor manufacturers are deposited a San Juan to the 

credit of the treasurer of Puerto Rico and consequently are not shown in other collection statements herein 

except that liquor and tobacco taxes amounting to $367 in 1953 and $32111 In 1952 were collected at the 

ports of entry and were covered into the Treasury of the United States to the credit of the treasurer of Puerto 

Rico, under the act of Mar. 2, 1917 (sec. 3360, Internal Revenue Code). 

ADDITIONAL ASSESSMENTS RESULTING FROM AUDIT 

BY INTERNAL REVENUE AGENTS 

TABLES 7-8 
112 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 113 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years 

[Excludes additional assessments resulting from examinations of returns assigned to deputy collectors or 

collectors' office auditors for examination under procedures in effect prior to reorganization] 

(a) TOTAL REGULAR AND JEOPARDY ASSESSMENTS 

Tax year Items Tax Interest Penalty Total 

Income and profits tax: I 

1925 and prior 49 $22,024 • $26,959 $2, 630 $51, 613 

1926 9 9,361 13,882 5,037 28,280 

1927 7 4,355 6,250 2,742 13,347 

1928 10 14, 026 19, 263 41, 828 

1929 12 19, 917 25, 924 10,943 56, 784 

1930 20 28, 983 24, 248 11, 570 64, 781 

1931 18 16, 423 19, 751 11, 157 47,331 

1932 21 35, 188 40,560 18, 387 94, 135 

1933 28 53,204 57,600 25, 217 136,021 

1934 35 49, 132 51, 399 23,907 124, 438 

1935 47 168,659 161, 988 30,856 361, 303 

1936 49 285, 113 243, 580 41, 264 549, 957 

1937 75 362, 205 309, 377 76, 332 747, 914 

1938 105 1,361,053 1,101, 821 114, 780 2, 577, 654 

1939 161 505, 312 341,052 120, 833 967,197 

1940 348 2, 366,009 1, 519, 421 469,927 4, 355, 357 

1941 773 7, 418, 924 3, 958, 486 709, 081 12, 086, 491 

1942 1,153 12,112, 098 5,668,229 1, 773, 368 19, 551, 695 

1943 2, 382 32, 420, 578 12, 613, 331 4, 581, 407 49, 615, 316 

1944 3, 578 38,263,205 15, 300, 241 6,960, 060 63 523, 506 

1945 5,036 46, 790, 307 17, 506, 624 9, 862, 389 74,159, 320 

1946 7, 512 51, 355, 443 16, 876, 983 9, 992, 846 78, 225, 272 

1947 10, 898 64, 297,120 17, 179, 627 7,919, 284 89, 396, 011 

1948 19, 008 77, 122, 008 16, 062, 280 7, 497, 473 100, 681, 761 

1949 78,838 130, 029, 785 19, 885, 001 7, 311, 033 157, 225, 819 

1950 118, 387 142, 663, 397 14, 292,116 10, 594,135 167, 549, 648 

1951 22, 482 41, 424, 861 2, 570, 681 2, 851, 122 46, 846, 664 

1952 340 1, 216, 325 10, 267 56, 943 1, 283, 535 

1953 2 21,307 232 ______________ 21,539 

Total 271, 384 650, 416, 303 145, 885,173 71, 083, 039 867, 384, 515 

Excess profits tax: 

1940 38 784, 027 508, 653 29, 594 1, 322, 274 

1941 90 12, 510, 806 9,096, 701 197, 783 21, 805, 290 

1942 215 9, 599,166 5, 348, 304 850, 590 15, 798, 060 

1943 399 27, 871, 231 13, 438, 464 I, 602, 918 42, 912, 613 

1944 499 20, 836, 710 11, 211,079 1, 249, 645 33, 297, 434 

1945 541 27, 875, 474 11,021, 072 653,789 39, 550,335 

1946 164 1, 448, 574 542, 981 51, 605 2,043, 160 

Total 1, 946 100, 925, 988 51, 167, 254 4, 635, 924 156, 729,166 

Grand total 273, 330 751, 342, 291 197, 052, 427 75, 718, 963 1,024, 113, 681 

(b) TOTAL REGULAR ASSESSMENTS 

Income and profits tax: I 

1925 and prior 

•0 e 

$21,525 $26,106 $2,378 $50, 009 

1926. _ _ 9, 238 13, 691 4, 975 27, 904 

1927 4, 257 6,102. 2 693 13, 052 

1928 10,137 13, 807 5, 647 29, 591 

1929_ 16,230 21,166 8, 253 45, 849 

1930_ 25, 058 19, 457 8, 870 53, 185 

1931 12,552 15, 236 8,274 36,062 

1932 28, 510 33,180 13 432 75,102 

1933 52, 239 56, 520 24, 734 133, 493 

1934 43, 692 45, 639 21, 085 110, 416 

1935 156,172 149, 481 23, 387 329, 040 

1938 237, 894 217, 955 24, 959 480, 808 

1937 333, 344 283, 455 61, 809 678, 608 

1938 1, 307, 238 I, 057, 352 85, 211 2, 449, 801 

1939 391, 319 254,580 78,281 724, 160 

1940 1, 305, 820 804, 626 142, 056 2, 252, 502 

1941 6, 988, 916 3, 663,141 479,955 11,110,012 

1942 ____ 11,!08, 782 5, 024, 336 1, 206, 021 17, 239, 139 

1943 28, 365, 487 10, 541, 862 3, 210, 241 42,117, 610 

1944 33, 567, 346 13,134, 616 4, 847, 253 51, 549, 215 

1945 38, 883, 514 14, 338, 799 5, 895, 975 59, 118, 288 

1946 38, 769, 481 12, 616, 464 5, 247, 825 56, 633, 770 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years-Continued 

(6) TOTAL REGULAR ASSESSMENTS-Continued 

Tax year Items Tax Interest Penalty Total 

Income and profits tax -Con. 

1947 

1948 

1949 

1950 

1951 

1952 

1953 

10, 066 

18, 035 

77,719 

117, 293 

21,936 

299 

1 

$50, 979, 724 

67, 988, 743 

120, 548, 353 

135, 393, 363 

37, 818,122 

1, 066, 770 

I, 359 

$13, 315, 423 

14, 054, 343 

18, 374, 475 

13, 547, 603 

2, 411, 954 

9,127 

232 

$3, 830, 486 

3,105,554 

2, 965, us 

6, 407, 603 

1, 284, 080 

5,971 

$68,125,633 

85,146, 640 

141,888, 653 155, 348, 569 

41, 494, 156 

1,081, 868 

1,591 

Total 264,313 575, 311. 185 124, 050, 707 39 982, 632 738, 344, 524 

Excess profits tax: 

1940 35 779, 421 505, 369 26, 298 1, 311, 085 

1941 88 12, 371, 093 9, 010, 648 117, 559 21, 499, 300 

1942 204 9, 355, 269 5, 205, 592 723, 811 15, 284, 672 

1943 

1944 

388 

478 

27, 666, 603 

20, 371, 481 

13, 330, 626 

10, 995, 828 

1, 498, 109 

1, 045, 448 

42, 495, 335 

32, 412, 757 

1945 527 27, 465, 050 10, 854, 599 449, 734 38, 769, 383 

1946 162 1, 437, 936 539,477 47,002 2, 024, 415 

Total 1,882 99, 446, 850 50, 442, 136 3, 907, 961 153, 796,947 

Grand total 266, 195 674, 758, 035 174, 492, 843 42, 890, 593 892, 141, 471 

(c) ASSESSMENTS ON AGREEMENT WITHOUT 90-DAY LETTER 

Income and profits tax: 1 

925 and prior 43 $21,525 $26,106 $2, 378 $50,009 

926 6 9, 238 13,691 4,975 27, 904 

927 5 4, 257 6,102 2, 693 13, 052 

928 6 10, 137 13, 807 5, 647 29, 591 

929 5 15, 030 19, 532 7, 392 41, 954 

930 12 24,405 18, 604 6, 426 49, 435 

931 11 11, 568 14, 010 5, 523 31,101 

932 12 24, 502 28,402 13,146 66, 050 

933 23 46,472 50, 044 23,452 119, 968 

934 25 36, 389 37,881 17, 773 92,043 

935 31 117, 024 111, 705 19, 915 248,644 

936 29 218, 787 199,981 19, 186 437, 934 

937 47 293, 119 249,083 46,170 588,372 

938 61 132, 386 102, 954 41,159 276,499 

939 95 231, 053 142, 517 61,681 435,251 

940 225 532,056 338, 811 134, 881 1, 005, 748 

941 524 5, 424, 818 2,796,658 389, 991 8, 611, 467 

942 697 9, 031, 290 3,989, 353 725, 873 13, 746, 516 

943 1,465 22, 621, 418 7,665, 667 2,148,083 32, 435, 168 

944 2, 307 26,170, 751 9, 885, 124 2, 838, 274 38, 894,149 

945 3, 294 29, 227, 811 10,560, 659 3,240,494 43,028, 964 

946 5, 319 28, 423, 051 9, 189, 097 3, 337, 857 40, 950, 005 

947 8,501 41, 883, 346 10, 759, 368 2,988, 790 55, 631, 504 

948 16,099 61, 436, 368 12, 620, 836 2,445, 389 76, 502, 593 

949 75, 279 115, 289, 580 17, 484,483 2, 351, 715 135, 105, 758 

950 115,896 133,124, 642 13, 304, 751 6, 113, 641 152, 543,034 

951 21,798 37,604, 889 2, 398, 368 1,241,113 41, 244, 370 

952 299 1, 066, 770 • 9,127 5, 971 1, 081, 868 

953 1 1,359 232 1, 591 

Total 252, 118 513,034, 019 102, 018, 933 28, 239,590 643, 290, 542 

Excess profits tax: 

1940 21 532,097 350, 675 15, 708 898,480 

1941 82 10, 483,251 7, 8.55, 287 89, 447 18, 407, 985 

1942 135 7, 232, 701 4,071,166 462, 208 766,075 

1943 265 23, 365, 856 10, 975, 799 1, 234, 535 35, 576,190 

1944 324 16, 916, 854 9,437, 915 895, 607 27, 250, 376 

1915 402 25, 604,256 10, 089, 586 364,842 38,058, 684 

1946 128 1,191, 611 444,482 45, 526 1,881,619 

Total 1, 337 85, 306, 626 43, 221, 910 3,107, 873 131, 839,409 

Grand total 253,455 598, 340, 645 145, 241, 843 31, 347, 463 774, 929, 951 

See footnote at end of table. 

See footnote at end of table. 
114 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years-Continued 

(41) ASSESSMENTS ON AGREEMENT AND DEFAULT AFTER ISSUANCE OF 90-DAY 

LETTER 

Tax year Items Tax Interest Penalty Total 

Income and profits tax: 1 

1935 $723 $834 $1, 557 1936 725 697 1,494 1937 1,225 1,092 $177 2,494 1938 4,628 934 233 2292 1939 24, 628 18, 920 3, 224 46, 772 

56

, 

 849 1940 31,425 36,3 32 4,192 , 1941 234,421 136, 347 61, 996 432, 764 1942 973,055 859,430 264,490 1, 747,347 1943 1,673,055 859,430 534,859 3,067,344 1944 2,825,788 1, 280,318 1,209,638 5,318, 744 1945 4, 271,376 1, 671, 859 1, 814, 586 7, 757,821 1946 4, 472, 624 1,488,722 1,311,871 7.273,217 , 1947 2, 621, 481 726, 552 456, 491 3, 804, 524 1948 

1941) 3,468,643 

4,468,643 

842, 949 

772, 023 

544,855 

550, 589 

5,346, 932 

5, 791, 255 1950 

1951 1, 925, 077 

 209,396 

208, 777 256,066 2,389, 920 

1952 13,299 22, 864 245, 559 

1953 

Total 6,474 27, 674, 291 8, 583, 394 7,029, 129 43, 286, 813 

Excess profits tax: 

1940 3,873 2, 618 6,491 1941 68,971 47, 813 28, 112 144,896 1942 477, 449 266, 705 241, 733 985,887 1943 518,353 135,244 197, 746 963,623 1944 311,446 135,244 98,2)3 (644, 893 1945 252,184 103,983 30,083 386, 250 1946 43, 23 16, 013 1,138 60, 357 

Total 1 115 1,675,484 819,900 597,013 3, 092,397 

Grand total 6, 589 29,349, 775 9, 403,294 7, 626,141 46,379, 210 

(e) ASSESSMENTS BASED UPON STIPULATION BEFORE THE TAX COURT 

Income and profits tax: I 

1934 $1, 956 $2, 079 $1, 254 $5, 289 /935 36, 129 34, 748 1, 811 72, 688 1936 7,888 7,406 3,278 18,571 1937 21,938 18,220 11, 192 51,261 1938 30,099 24,387 3,824 58,310 1939 52, 497 39, 273 3, 452 95, 222 1940 

1941 119,086 75,940 1,022 196,048 199, 746 95, 967 27, 802 323, 515 1942 772, 626 377, 766 205,201 1,355, 593 1943 2,069, 194 996, 724 367, 638 3,433, 556 1944 2,954,861 1, 249, 162 663,128 4, 867,141 1945 3,477,192 1,34; 881 60,458 5,425, 531 1946 3, 699, 711 1, 183, 715 452,170 5,335, 596 1947 3, 116, 202 859,925 306,614 4, 282, 741 1948 1, 766,307 402,545 74,123 2,242,975 1949 

1950 606,913 104,170 23,156 734, 238 

1951 320,137 31, 441 35, 788 387, 366 

1952 3, 593 270 3,863 

1953 

Total 4,089 19, 256,076 6, 851,609 2, 781,820 28, 889, 505 

&mess profits tax: 

'2 2a2g:=1 

1940 162, 545 98, 608 10,015 271,168 1941 1, 744, 905 1, 055,185 2, 800,090 1942 918,907 483,258 19, 870 1,422,035 1943 2, 713,851 1,658, 788 52, 578 4,425, 217 1944 2,304,945 1,04; 662 44,938 3,397, 545 1945 693,534 273,505 36,002 1, 003, 041 1946 93,511 34,356 340 128,207 

Total 274 8,632, 198 4.651,362 163,743 13,447,303 

Grand total 4,363 27, 888, 274 11, 502,971 2, 945,563 42, 336, 808 

STATISTICAL TABLES 115 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years-Continued 

(f) ASSESSMENTS MADE AFTER DECISION BY THE TAX COURT 

Tax year Items Tax Interest Penalty Total 

Income and profits tax: I 

1929 $1, 200 $1, 634 $861 X3,695 

1930 546 711 2, 244 3, 501 

1931 

1932 

861 

3,811 

1, 070 

4, 522 

 2, 751 

286 

4, 682 

8,619 

1933 5,767 6,476 1,282 13, 525 

1934 5,348 5, 680 2,058 13, 086 

1935 2, 722 2, 727 1, 661 7,110 

1936 10, 495 9, 893 2, 495 22,883 

1937 17, 062 15,059 4,359 36, 480 

1938 1,143, 624 929,078 39, 995 2,112, 697 

1939 83,141 53,849 9,923 146,913 

1940 

SI 

623, 252 368, 643 1, 961 993, 856 

1941 1,107,931 634, 169 167 1, 742, 267 

1942 255,419 123,807 10,457 389, 683 

1943 2,001, 821 1,020,060 159, 663 3, 181, 544 

1944 1, 605, 946 720, 022 143, 214 2,469,182 

1945 1,907, 135 758,399 240,437 2,905, 971 

1946 2,174, 094 754, 929 145,926 3,074,949 

1947 3, 358, 694 969, 578 78, 591 4,406, 863 

1948 830, 940 182,012 41, 186 1,054,138 

1949 183,237 33,799 40,366 257,402 

1950 23,508 2, 634 . 2, 108 28, 250 

1951 245 17 104 366 

1952 

1953 

Total 1, 632 15,346, 799 6, 598, 771 932, 095 22, 877, 665 

Excess profits tax: 

c' EINW° 

1940 80,906 53,465 575 134,946 

1941 93,966 52, 363 146, 329 

1942 726, 212 384, 463 1,11 0, 675 

1943 1, 068, 540 448, 515 13, 250 1,530, 305 

1944 838, 226 375, 007 6, 700 1, 219,943 

1945 915,076 387, 515 18,807 1, 321, 408 

1946 109,606 44, 626 154, 232 

Total 156 3, 832, 542 1, 745, 964 39,332 6,617,838 

Grand total 1, 788 19,179, 341 8, 344, 735 971,427 28,495, 503 

CO TOTAL JEOPARDY ASSESSMENTS 

$500 

123 

98 

3, 889 

3,687 

3, 905 

3,871 

6, 679 

965 

$851 

191 

147 

5, 456 

4,758 

4, 792 

4,515 

7,401 

1,080 

$252 

61 

49 

2, 892 

2,690 

2, 900 

2,883 

4,956 

483 

$1,60; 

371 

291 

12, 231 

11,13: 

11, 591 

11,26( 

19,031 

2,524 

5,439 5, 759 2,822 14,02 

12,487 12, 507 7,268 32, 267 

27,218 25,625 16,305 69,146 

28,861 25,922 14, 524 69,301 

53, 815 44,469 29, 569 127,856 

113, 992 86,493 42,552 243,031 

1, 060,189 714, 795 327, 870 2,102, 854 

452,008 295,345 229,126 976,474 

1,103, 316 641,893 567,346 2, 312, 5.54 

4,055,091 2,071,449 1, 371,166 7, 497, 70( 

4, 695, 860 2,165, 625 2,112,807 8,974,291 

7,906,792 3,167, 824 3,966, 414 15, 041,03f 

12, 585,962 4, 260, 520 4, 745,021 21,591,50; 

13, 317, 397 3,864,204 4,088, 779 21, 270, 38( 

9,135, 265 2,007,937 4, 391, 919 15,535,121 

9,481,432 1,510,525 4,345,218 15, 337,165 

7,270,033 744,513 4,186, 532 12, 201,076 

3.606. 739 158.728 L 587. 041 5.352.504 

See footnote at end of table. 

end of a e. 
$7, 067 

149,927 

72, 064 

91, 272 

335, 637 

852, 569 

785, 758 

1, 213, 747 

1, 187, 926 

713, 912 

29, 923 

$1, 358 

37, 967 

22, GM 

29, 991 

40, 791 

112, 585 

150,684 

181, 970 

806, 956 

36, 927 

5, 090 

$3, 664 

69, 091 

34,186 

43,985 

217, 660 

572,139 

507, 995 

874, 633 

606,469 

646,707 

19, 696 

$2, 045 

37, 869 

15,870 

17, 296 

77, 186 

167,845 

127,079 

157, 444 

74,501 

30, 278 

137 

$500 

123 

98 

3, 889 

3, 687 

3,905 

3,871 

6, 679 

965 

5, 439 

12, 487 

27, 218 

28,861 

53,815 

113, 992 

1, 060,189 

452,008 

1, 099, 653 

3, 986, 001 

4, 661, 674 

7, 862, 807 

12, 368, 302 

$851 

191 

147 

5, 456 

4, 758 

4,792 

4, 515 

7,401 

1,080 

5, 759 

12,507 

25, 625 

25, 922 

44, 469 

86, 493 

714, 795 

295,345 

639, 848 

2, 033, 581 

2,149, 755 

3, 150, 528 

4,183, 334 

$252 

61 

49 

2,892 

2, 69) 

2, 900 

2, 883 

4, 956 

483 

2, 822 

7, 268 

16, 305 

14, 524 

29, 569 

42, 552 

327, 870 

229,126 

565, 988 

1, 333, 199 

2, 090, 799 

3, 936, 423 

4, 704, 230 

$1, 603 

375 

294 

12, 237 

11, 135 

11, 597 

11, 269 

19, 036 

2,528 

19, 020 

32, 262 

69,148 

69, 307 

127, 853 

243,037 

2,102, 854 

976,479 

2, 305, 489 

7, 352, 781 

8, 902, 228 

14, 949, 758 

21, 255, 866 

6 

2 

2 

3 

4 

3 

4 

2 

3 

7 

12 

12 

20 

26 

49 

80 

188 

277 

392 

575 

760 

116 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years-Continued 

(g) TOTAL JEOPARDY ASSESSMENTS-Continued 

Tax year Items Tax Interest Penalty Total 

Income and profits tax 1-Con. 

1952 

1953 

Total 

Excess profits tax: 

1940 

1941 

1942 

1943 

1944 

1945 

194 

Total 

Grand total 

41 

1 

$149,555 

19,948 

$1, 140 $50,972 $201,667 

19,948 

7,071 75, 105, 118 21, 834, 463 32,100, 409 129,039,990 

3 

2 

11 

11 

21 

14 

2 

4,606 

139,713 

243,897 

204,631 

465,229 

410,424 

10,638 

3,287 

86,053 

142,712 

107,838 

215,251 

166,473 

3, 504 

3,296 

80,224 

126, 779 

104,809 

 204,197 

204,055 

4,603 

11,189 

305,990 

513, 388 

417,278 

884,677 

780,952 

18, 745 

64 1, 479, 138 725,118 727, 963 2, 932, 219 

7, 135 76, 584, 256 22, 559, 581 32, 828, 372 131, 972, 209 

(3) JEOPARDY ASSESSMENTS UNDER BANKRUPTCY AND DISSOLUTION 

PROCEDURE 

Income and profits tax: 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

1953 

Total 

Excess profits tax: 

1944 

1945 

1946 

Total 

Grand total.. 

(i) FRAUD JEOPARDY ASSESSMENTS 

Income and profits tax: 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1%8 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

See footnote at end of table. 

STATISTICAL TABLES 117 

TABLE 7.-Additional income and profits tax assessments made during the fiscal 

year 1953, by tax years-Continued 

(I) FRAUD JEOPARDY ASSESSMENTS-Continued 

Tax year Items Tax Interest Penalty Total 

Income and profits tax I-Con. 

1947 812 $12, 745, 258 $3, 696, 359 $3,976,193 $20, 417, 810 

1948 930 8, 627, 270 1, 880, 858 4, 241, 236 14,749,364 

1919 998 8, 606, 797 1, 353, 379 4, 163, 241 14, 123, 417 

1950 973 6, 663, 564 670,012 3, 379, 576 10, 713,152 

1951 441 2, 960, 032 128,450 1, 550, 114 4, 638, 596 

1952 26 129, 859 1, 003 45, 882 176, 744 

1953 1 19, 948 19, 948 

Total _ _______________________ 6, 615 71, 508, 892 gl , 127, 213 30, 671, 081 123, 310,186 

E xcess profits tax: 

1940 4,606 3,287 3,296 11,189 

1941 139,713 86,053 80,224 305,990 

1942 243,897 142, 712 126,779 513,388 

1943 204,631 107,838 104,809 417,278 

1944 462,067 213,880 204, 197 880, 144 

1945 401,874 162,909 204, 055 768,838 

1946 10,638 3,504 4,603 18,745 

Total 61 1, 467, 426 720,183 727, 963 2, 915, 572 

Grand total 6, 676 72, 976, 318 21, 847, 396 31, 402, 044 126, 225, 758 

Includes corporation excess profits tax under the Excess Profits Tax Act of 1950. 

TABLE 8.-Deficiencies appealed to the Tax Court fiscal year 1953 

INDIVIDUAL INCOME TAX 

Tax year Returns 

involved Tax Penalty Total 

1936 and prior 

Aag,' 8, 2°E`4§1F.E .EVir F ic 

$587,081 $203,296 $790,377 

1937 62,838 90,932 153, 770 

1938 176,654 49,875 226,529 

1939 152, 252 57,614 209, 866 

1940 2, 681, 226 1,133, 232 3, 814, 458 

1941 1, 274, 970 621, 529 1, 896, 499 

1942 3, 776, 666 1, 848, 912 5, 625, 578 

1943 9, 117, 857 2, 802, 578 11, 920, 435 

1944 18, 091, 215 4, 985, 480 23, 076, 695 

1945 18, 580, 886 6, 430, 824 25, 011, 710 

1946 20, 613, 812 8, 024, 158 28, 637, 970 

1947 21, 357, 432 5, 839, 328 27, 196, 760 

1948 20, 485, 731 4, 879, 019 25, 364, 750 

1949 26,139, 010 5, 673, 291 31, 812, 301 

1950 II, 475, 772 3, 190, 636 14, 666, 408 

1951 1, 518, 155 589,591 2, 107, 746 

1952 7,180 I, 667 8, 847 

Total 13, 258 156, 098, 737 46, 421, 962 202, 520, 699 
118 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 8.-Deficiencies appealed to the Tax Court, fiscal year 1953-Continued 

CORPORATION INCOME AND PROFITS TAX 

Tax year Rotuma 

involved Tax Penalty Total 

1938 and prior $40,167 $14, 271 $54, 438 1937 9, 607 2, 402 12,009 

1938 11,367 2,842 14,209 

1939 12,156 3, 442 15, 598 1940 6, 971, 521 651, 282 7, 622, 783 1941 41, 833,389 368, 685 42,102, 074 

1042 87, 218,981 425,954 87, 644, 935 1943 47, 953, 302 2, 090,338 50,043, 640 

1944 

g 

41, 610, 144 1, 755, 249 43,365,393 

1945 36, 920, 031 1, 604,011 38, 524,042 1946 9, 562, 545 591, 924 10,154, 469 

1947 6,196, 033 674, 705 8, 870, 738 

1948 6,693, 453 386, 904 7, 080, 357 1949 8, 883, 484 684, 817 7,368, 301 

1950 3,053, 076 306, 574 3, 359,650 

1951 703, 861 154, 198 858, 059 

1952 

Total 2,286 295, 473,117 9, 617, 578 305, 090, 695 

ESTATE AND GIFT TAX 

1936 and prior 

"' ""'° n■ Re7;40 n2 

$10, 636 $1, 317 $11, 953 1937 512 256 768 1938 3,269 1,650 4,919 1939 14,853 4,154 19,007 1940 • 4, 572, 324 1, 141, 912 5,714, 136 

1941 2,982, 548 750, 538 3, 733,086 1942 50,976 17,262 68,238 1943 1, 412,032 402, 887 1, 814,899 1944 393,642 127, 602 521, 244 1945 653, 958 152, 543 806, 501 1946 465,329 147,036 612,365 1947 1, 267, 063 104, 459 1,371, 522 1948 25, 501, 889 73,701 25,575, 590 1949 4, 131, 946 98, 772 4, 228,718 1950 560, 928 26,944 587,872 1951 12,999, 922 11,426 13,011, 348 1952 805, 913 11, 129 817, 042 

1953 80,982 80,982 

Total 576 55, 908, 622 3, 071,568 58,980,190 

Grand total 16,120 507, 480, 476 59, Ill, 108 566,591, 584 

ALCOHOL AND TOBACCO TAXES 

TABLES 9-22 

281 228- -54.---11 
120 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL 

Industrial alcohol 

;gra 

ill 

- v9*Eassa;sngst.s--smwmgmmmaRvirg uA 

- -- — 

Reprocessors, 

rebottlers,etc., 

of specially denatured alcohol articles 

--Naw24--mam .,:iv-mispaca3 i. a, 99 -12- w— 

Usersof 

specially denatured 

alcohol 

andrum 

x -4p244.74.--wm-gvownrw—m-g4-pla 

Dealersin 

specially denature d 

alcohol 

and mm 

. . . _ . ..... . . . . Industrial 

alcohol 

denaturing 

Plants 

. . Industrial 

alcohol 

bonded 

ware- houses 

. _ ...... ... . . . 

09 

Pi, 

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Distilled spirits 

m 

ill

2-t- - .. . 

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Distillery denaturing bonded 

warehOUSOLi 

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Internal 

revenue 

bonded 

arehouses 

s.m . =..m..4n.. n. mm m. 

17a 

A4I 

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STATISTICAL TABLE

122 

RO JoI

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

m

E1 

atS 

'Q9 1

g ot 

-- "A" - ":1" -IAR'"2"!--:A2A' --1 A A' 

9 - 

th 

.. .. - ,. . . . . 

Manufacturersof non- 

, beverage 

products 

(dra

wback) 

' -'"`22"'R -1 prt- R'SMAR^2 ' 'I= r 

Beverage dealers 

j _ 40xi 

PEEiEr.REqRRE§EEPEEEFREE 2-2 EPM 

. .,s, . ... ... ... . .. ,,, 

ill REEHR4E4UEEEPMAMIE4MEIEEIIRE 

0 .4 4 

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Vinegar factories 

using 

vaporizing 

process 

us on

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R ' .. .e ....m . Cs . ,,- 

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281228-154--10 
124 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 10.— Permits under sections 8070 through 8125, Internal Revenue Code, 

fiscal year 1953 

Industrial alcolaol plants, 

bonded warehouses, and denaturing 

plants I 

Dealers e

In apeciay de- ll 

natured 

alcohol 

Users of 

specially 

denatoted 

alcohol 

HOP 

Users 

of taxfree 

alcohol 

Carriers of 

tax-free 

and egodaily denatured 

alcohol 

Total 

In effect July 1, 1962 4, 226 52 7,659 

42 2 A -W 

2, 524 Issued 303 1 307 658 Terminated 

Revoked 361 

1 

2 326 746 

1 Voluntarily surrendered.. 276 1 235 553 Involuntarily surrendered. 7 4 13 Expired ' 77 1 87 179 In effect June 30, 1953 4,168 51 7,640 12, 436 Renewals approved 

Amended 3, 990 50 7, 492 12, 084 1, 216 37 576 1, 924 

Permits cover industrial alcohol plants, bonded warehouses, and denaturing plants, either singly or in combinations. 

I Represents permits terminated due to failure to flle renewal applications, or to disapproval of renewal applications. 

Nom—For permits by States, see table 9. 

TABLE 11.— Permits under the Federal Alcohol Administration Act, fiscal year 1953 

Distillets 

Warehousing 

and 

bottling 

Reath, 

tiers 

Wine 

producers 

and 

blenders 

Wine 

blend- 

 era 

Importare 

salon 

Whole- Total 

In effect July 1, 1952 

Issued 

Terminated 

Revoked 

Annulled 

Voluntarily surrendered 

Automatically terminated 

In effect June 30, 1953 

Amended 

Suspended 

Reinstated after suspension 

In suspension June 30,1953 1953 

ga• Map 

@£ R 

RT4 :1 

02-2-115 

R=.1 ®w 

ERR" &sae-- 

14,113 

1,925 

2,464 

43 

2 

1,226 

1,194 

13,574 

1,056 3 

4 

11 

RFINriRFX"g aaa 

STATISTICAL TABLES 125 

TABLE 12.—Permita under the Federa Alcohol Administration Act, by States, 

as of June SO, 1953 

State Distillers 

Warehousing 

and 

bottling 

Rectillers 

Wine 

producers 

and 

blenders 

wine 

 b lenden 

4 

Wholeeaters Toni 

Alabama 

1 Ig

a

n.W

W,"

MRSP§ inlqgn"PM ER

WOMF42

E4RES a a a 

Alaska 

Arizona 

Arkansas 24 California 101 34 342 35 Colorado 1 2 Connecticut 1 7 2 2 Delaware 

District of Columbia 

Florida 2 2 Georgia 3 Hawaii 4 Idaho I Illinois 7 9 4 5 Indiana 10 12 

Iowa 2 8 

Kansas 2 

Kentucky 90 28 1 1 Louisiana 2 1 3 1 Maine I I 3 Maryland 15 21 3 Massachusetts 5 12 1 5 

Michigan 8 11 I Minnesota 1 

Mississippi 

Missouri 4 2 5 2 

r, 

Montana 

Nebraska 2 

Nevada 

New Hampshire 

New Jersey 11 18 4 New Mexico 1 13 New York 2 8 70 7 North Carolina 6 North Dakota 

Ohio 5 5 69 3 Oklahoma 

Oregon 1 10 Pennsylvaa ni 18 20 5 5 Puerto Rico 11 35 10 Rhode Island 

South Carolina 2 South Dakota 

Tennessee 

Texas 7 Utah 1 

Vermont 

Virginia 5 7 1 Washita 7 15 West V 

Wisconsin 2 5 1 Wyoming 

Total 300 349 223 649 77 1,233 13, 574 
126 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 13.-Claims: Redemplon of stamps and remission, abatement, and refund 

of taxes, fiscal year 1953 

Redemption of 

stamps 

Remission of 

taxes 

Abatement of 

taxes 

Refund 

of taxes 

Uncollectible 

taxes 

Total 

number 

Total 

amount 

On hand July 1, 1952 164 8 163 1,321 7 1,663 $1,343,297 Received during year 1,460 563 597 12, 462 15, 082 4, 969, 062 Reopened durum year 5 1 9 1 16 3,564 

Total 1,629 571 761 13,792 8 16,761 6,315, 923 

Allowed 1 1,145 506 485 8, 782 1 10, 919 5, 218, 545 Rejected 107 63 85 225 480 514,150 On hand June 30, 1953 377 2 191 4, 785 7 5,362 583, 228 

Total 1,629 571 761 13,792 8 16,761 8, 315, 923 

I Includes 88 claims aggregating $249,753 representing refunds of taxes on distilled spirits lost in the floods 

of 1951. These represent all claims filed pursuant to sec. 498 of the Revenue Act of 1951. 

TABLE 14.-Claims: Drawback, fiscal year 1953 

Distilled spirits used 

in nonbeverage 

products 

Products exported 

Distilled spirits 

and wines bottled 

especially for export 

Distilledspirits 

exported in original 

packages 

Number Amount Number Amount Number Amount 

On hand July 1, 1952 274 $2, 513,109 519 $643, 819 

Received during year 4,094 50, 302, 761 5, 011 4, 229, 628 

Total 4, 368 52,815, 870 5, 530 4, 873,447 

Allowed 4,170 50, MO, 793 5,406 4, 631,107 

Rejected 59 64,630 5 12,347 

On band June 30, 1953 139 2, 241, 447 119 229,993 

Total 4,368 52, 815,870 5, 530 4, 873, 447 

Products exportedContinued 

Alcohol used in Stills exported Total 

flavoring extracts 

and toilet and medicinal preparations 

Number Amount Number Amount Number Amount 

On band July 1, 1952 68 $92, 616 861 $3, 249, 544 

Received during year 677 844, 390 2 $44 9, 784 55,376, 823 

Total 745 917,066 2 44 10,645 58, 626, 367 

Allowed 712 912, 832 2 44 10, 290 56,053, 776 

Rejected 4 64 78, 981 

On band June 30, 1953 33 24,170 291 2,495, 610 

Total 745 937, 008 2 44 10, 645 58, 626,367 

STATISTICAL TABLES 127 

TABLE 15.-Label activity under Federal Alcohol Administration Act, fiscal year 1953 

Applications received Certificates Issued 

Appliestions cllsaPProved 

Total 

or 

approval 

For 

exempLion Total Approvals EtTomits13- 

DISTILLED SPIRITS 

Domestic 12,134 21 12,155 11, 515 18 282 11, 795 

Imported 1,323 1,323 1,276 74 1,350 

Total--- 13,457 21 13,478 12, 791 18 336 13,145 

WINES 

Domestic 11,371 185 11, 556 10, 584 175 175 10,934 

Imported 8,974 8,974 8,297 191 8.488 

Total 20,345 185 20,530 18,881 175 368 19,422 

MALT BEVERAGES 

ri , 

Domestic 1,333 1,190 18 1,20g 

Imported 228 168 31 199 

Total 1,581 1,661 1,358 49 1,407 

Grand total 35,383 206 35,569 33,030 193 751 33,974 

TABLE 16.-Enforcement Alcohol and Tobacco Tax Division: I Seizures and persons 

arrested, by months, fiscal year 1953 

Month 

Seizures 

Stills 

Nontaxpaid distilled 

spirits 

(wine 

gallons) 

Nontaxpaid 

wines 

(wine 

gallons) 

Mash 

(wine 

gallons) 

Automobiles Trucks 

Property 

(appraised 

value) 

July 823 13,808 374 407,399 144 45 $203,709 

August ' 

September 

806 

857 13,464 

11,359 

2 

8,854 

4

40

67,921 

167 

147 

41 

40 

218,019 

255,385 

October 883 13, 113 530,655 130 63 222,034 

November 807 12,828 1,729 524,004 123 39 236, 388 

December 1,013 12, 183 175 88,854 138 98 205,337 

January 1,042 17,660 31 7

5

91,608 162 58 321,555 

February 957 15,315 551,104 147 52 371, 035 

March 1,049 14, 504 75 567,553 165 52 272,074 

April 897 15,611 5,104 535,576 153 53 344. 738 

May 760 15,368 279 422.696 130 57 215,408 

June 805 17, 738 842 908,858 152 37 238,865 

Total 10, 699 172, 951 8,611 6,151,082 1, 748 585 3,109, 525 

Includes seizures and arrests in cases adopted, as well as originated by the Alcohol and Tobacco Tax 

Division. 

2 Includes $34,155 representing the appraised value o 9 automobiles, 6 tracks, and ,023 wine gallons of 

taxpaid liquors, seized for violations of the Liquor Enforcement Act of 1936, and the value of 11,631 wine 

gallons of taroald liquors seized for violations of other Internal revenue laws. In addition

wine gallons of 

as a result of floor 

stocks tax evasion, there were seized 1,586 wine gallons of taxpaid distilled spirits and 2 taxPaid wine, valued at $31,828. 

Persons arrested 

746 

939 

795 

768 

688 

781 

909 

738 

882 

767 

708 

653 

9,370 
128 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 17.-Enforcement, Alcohol and Tobacco Tax Division: 1 Seizures and persons 

arrested, by States, fiscal year 1953 

State 

Seizures 

Stills 

Montagpaid 

distilled snirit. 

6

o 

vhle gallons) 

NonfatNiel wines 

(wine 

gallons) 

Mash 

(wine 

gallons) 

,.,.... 

nahrimni°- 

--- 

TrUcks 

Property 

(appraised 

value), 

Pereons ar- 

..,,, 

reSwu 

Alabama 

Alaska 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia__ _ 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louna 

Maryland 

Massachusetts 

Mich1gan 

Minnesota 

MlBsiss Miss°pri 

M ontana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Puerto Rico 

Rhode Island 

South Carolina 

Tennessee 

Texas 

Vermont 

Virginia 

Washington 

West Virginia 

Wyoming 

Total 

1,851 

2 

81 

8 

2 

1 

415 

1,708 

10 

9 

5 

545 

4 

67 

6 

24 

12 

515 

5 

48 

1 

26 

1, 671 

30 

234 

10 

84 

4 

1, 362 

1,122 

73 

1 

593 

5 

166 

E — zgR Pflgm'Ag § 

MVP, g 2k451R2 Fig 4 ci m ispi• . " 

5,390 

1,898 

11 

332 

130 

116 

635 

99 

1,040, 299 

861,259 

13 

25,806 

816 

1 

664, 920 

911,099 

755 

1,643 

165 

92,205 

315 

12, 730 

1,650 

8,908 

134 

371, 917 

226 

163,379 

134, 213 

6,010 

69, 477 

78 

38,894 

400 

586,405 

411,473 

11,973 

652,678 

510 

16, 010 

g -RR s' n R mm 

mcm e, so 

$335, 987 

112 

16, 986

40,063 

57,989 

6, 349 

715 

815 

241, 757 

327, 233 

110 

15 

8,341 

2,710 

3, 193 

15,835 

15, 835 

19,149 

3,090 

17, 912 

3, 450 

195,236 

146, 275 

1,250 

1, 822 

276,911 

3,272 

131, 816 

351, 620 

10, 723 

101,683 

1,683 

93,623 

218 

237, 651 

186,859 

94,861 

165.028 

298 

14,636 

10, 200 

rg p2181`r " ,r12F7. "5:1 3274 2,1 23 §S^" R2M2RL,1 :2 1°

T- "pgri,21 6. 

10,699 172,951 8,611 6,151, 082 1,748 585 3,104, 525 9,370 

I See footnote I, table 16. 

2See footnote 2, table 16. 

TABLE 18.

— Manufactured tuba 

STATISTICAL. TABLES 129 

Materialsused inmanufacturingtobacco 

1103, 

4 EENEERIAI9RERA9EARERgiggIEERMARE 

Vigeg' gg S gsliW -4166g g46ggag 

a, ,, . g ,-' cso, •' K 4 c4 g g.t. 

230, 470,FO 

g9e996 49 gar ‘71,6 3111.7 

5113145411m 

491140 

P - 

e 

n 

f 1 

i g 

66 

R AgE3 

e 

igg 

E R Et 

beeBZE i99 95 

958 'L95 OAT 'KM 'or 

loans 

44 

0 

' 

R 

g 

1 

g 

Ag 

Ag 

- g§ 

' 

gNiR 

Pi 

- 

E 

a 

gat 

6 la 

25,751, 081 

matzo 

eon 0r0 '4, 

Licorice 

1 § 

4' 

E 

6 

Pg 

g 6 

a 

ER 

gg 

a 

EggR 

ilex 

A 

1 

A 

g 

RH 

61 

15, 219, 528 

089'L19 

nT '

 o

re, n• 

9131019 

1 Allg ERg FEEA E '°1 E 50 i gAt 

stoles's' L913132 

ssacoad uI 

OR§ 0goc-ir ERF- 1 Egg pa RREgRE fi4add E5gREgE ,„v,, g• 

A Li g 1 

1 91gMd gM 996 

Scraps 

1 .1E0050E0 

°-"Ngreg' gRREEEREREANERREIEREREAREE EggglEgg"EiggE Prgcsrg 

e 

18,946,719 44. 

911'616  teng 444 ,— 

War 

parataing 

1RR 

$ a 

1 7 

PR 

a g 

a 49 

AgE02 

fw 

o4 

ERER hem 

44 

RE 

.; 

E 

7.; 

RE 

14. 

44 

33, 762,413 00 1232 Ong 

116'906 

nnn 

patumagrun 

i n 0_ ia of 

._. - - a 

i 

4 

SASH 

4R‘ 

et 

WEEEER 

44eg a 

..ini' - 

ERgA `;s .: 

R a 

., 

g 

g 

REM" aqi 

.:: etz 

to rev 969' 126'sz 

406'£99'9 

Nu

mberof factories I 

11 t -rn t.1 

4 - 

='° "r":=""c4R1""v"c"7.1"E'ela"'"E n 

IT 

6 

I

00.0.N000N..00 9.,ON000MOnN0.0000 ?ix 0 

V 

2 

O 

00.0N000051000000NoN0,-.000N04.000000 

tit 

LT 

N 

zgeT 

ur.uer 

seas 

-istiq xi" 

2:4--zim=4 ,--gn-""..--iii--""2 gR 

91 

ipir4gla 

...: 

g-,; 

gg2 --- wp a v 

113 t ElttrA-Ats 

_ 

,I. 

ililSwe.- teg. 

enVa9,z7t40,4NxE.:1>''g 

in - --i 4:04 mxzzzz5 ,400 5

gg1: 3430itkt rta.qAAEt 

- •--,o4,.,>. 

4,g: 

gad] 

... ; 

"-, 

. 

11 

-4- 0 

'g 

ang5oIPArelA 

c 

A 

ilfigti1 E, 

 i ,, t_› 

8 '4433 , gl ot 

- 

c... ..7,e 

ii °° i 6 
gg 

Og 

RE 

a 

Eggg 

2NEgE 

41 

ma

Fg 

p FN 

ai 

Es 

as 

5 

, 

. 

5 

g

3R 

ra 

277.1 

2g 

5g 

NE 

8 

NN 

opt 

0.0 

as 

it 

SETg 

ERA 

cs 

130 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

Manufactured tobaccoremoved l -re prod aed od pim if SI t 511190 

4 

N E g 2 BAB PIM c°8 

aed ed prat 1, 

V OTI Wiloo 

gr="1:2w' Rg.51ERRR'Ocg551R gR 

-113MEEPP322E1FRWEIRRgE225 

Without payment of tax 

, O" IW

1E 

E 1 E PR s. 3' 5 

m^ 

. . 

theUnited 

States 

For 

 use 

 o

f a R E R ees ts o sw kg o om t se 

1 

- 

- 

R 

n 

- 

t, 

Forexport 

4' 

5 

g 

•x 

cr., 

r.2.F. 

5 

3' 

5 

, mi croom etu am v no r a po

y plo

2Urt1:811gag1P.11MPR1E;g1=1! 

g1-1 14" 

ggielE1W-r”.P P 

Scrap chew- ing,smoking, 

and snuff s 

N— 

g 

32,1-1-er Ez.eng§x-4-MF. FR 

aERRggFERPIE5EFEEEERUE5RFREIHi 

—a 

A ' E" 

. 

E 

 m5 EH 

, 

ga8 

a 

F 

District 
Cigarsweighingmore than3 poundsperthousand 

2 vs Ited

g pesome

,L 0 911

gggRgEgaKiggH6E6gggg616M g 

4615g6g66

g6g

66W66166glit'7; glA1661 

.- ga a gge-ra mg ggg as glgggsd 

Removed without pay

ment of tax 4 

,2 013 0

1 

x 

ig Ira 

EE6 AlEAR 

ga5:1g" 

. - 

g 

i EgiEHA48 2 

Erg EEEEW 

REHEAR 

. 

sni p a. 

E 

0a age 

Em 

g 

ERIEER 

oTeg.-- g 

R EgEELT4sR 

ggea galgggag _ ,_ 

lEAAEAR 

N 

t2t4 

.1E 

s 

RE 

EE 

R 

E 

.5.0 

EE EE 

.. § 

a 

- s 

k , § tag §§ 

gal 

§g3 

c'

§5 

g 

1 

gggriRgEggggigglgraggIgg 

4.

lAiggig666666'55441151'g 

-: v4 F wag gg ggtl as ggggsg 

66566Kg 

rani§ 

Tobaccoused inmakingcigars 

6 

V 

St 4A 

Ss 

ii 

E 

EggEREEREPEREIRUm. 

" 1iggcl g5 66g'.7rg °fa 

2 

65ga'aro 

2312-iA 

A 

A 

. v 

1G4 EE5g 

. !2.:g.A 4 , ag

77141ErgAREENEEE'R 

-1 A6 ggrag . '56gggg 

ENEM A 

er 

v 

0m 

0i 

g 

 ti 

irREIERE1MRPFRIEgkEEFE 

gg.5 ggeq' gg Frgg 

M

-:A 

,:l.:416:gg 

Numberof factories I 

O

1

r2 

21,92 

S""r"82!)."- """2242" - ".r2221S2 

5 

1 

0.-.N.-0.0g04.-.....-00aNngn2r, 

0 

i 

00.N0000400[4000,1000..00000.10Nnr 

• 

4111iF• 

"-ER"2"E"R220"""""E252"-"-M22S27s: 

RCI WPI

m43M 

ligd 

; 

0 

mu- -i 

. 

`Pi 

1A 

.Agg4141FaUdm4 

1141"igiiib 

aag 

-A4v1E--4-112giN70Zin 

Resti-oatflagY. 

a a . 

e 

10011 

gealswi 

.;14 }1 

tE 

AN 

 • 

1/440-0 

EU 

gEE 

-'24. q 

EIEPEEEEEEEWEK 

EggEEEEEEMEggEEME 

1 61,e4gg' g 5a 

'5,755, 066,742 5,517, 616,957 

237,448,785 

4,

RAI 1 ,517: Egg rAEREAREEEEEER eAP4R4..4 mra 4,4ii 

g4 4 

ef 

'98l 1 t8

101 EL ' ZOE t

91 649 ' 1 63L 

4.60. 

RAI e.

ROgigAIERIAREEE0 ,74 elgt,4 aa .4 R 

241 '1 080 

ien /W

992 EN 

g gg

g 6-,6 g 

g 

a 

1 

g 

gg 

gg 

86t t 098

gg 

gg 

§ 

U 

g g 

a 

i 

g 

gs 

g 

'69 1Ri 216

8 '8 029 211'

61 t ' o zez t

EE1 

EEE 

- a5 

igiEggiEgKEE5Pga 

REEMEEEEIRERERERE 

:p 

 66'clgs i ga 

6,825, 190, 924 6, 594, 290, 925 

0El 668' 666'

EEE 

-I 

REENEEIREREA 

5'4 661::6 " 

EER . 

ag 

,5 1 99' act

IR ' 329 ' 9E9

t eoe 

4 

EP 

?lE 

gREggIEFEEAMEERE" 

5 KiK Igg - K 6=, - - 

'22 5 ova 

'69t 661 

1 6LL 099 

'gr.; 

664 

EIM Eiggggf 

RUggiigilEgE6F46Er 

ill 65 

a ,c, a . 

91 214 ' 1 ' 6809 6 ' 99 ' 168

'2 ee t oos 

ga-agg-g-gt=g-------2RH 

t SLY '1 20e

oe of 

LI LI 061 6I L 01 01 0 

zz ZI 

ELI 

cam,-,-.44-4mm-4Ami-m4,-.00-.Emo .to §R a 

-000.00-00.--0.....000.. 

96 

18 

91 

!lEti" - 9=S"i122S"""'""""22" 

L991 

1 80 '

1 69

.. 

>-..R 

ii 

E 2 

e - 

.0 

-i9p 

In 

A 

OSEgMisc4=1AtaS1

Nsizenngthg!Riv 

-4?14L 

 msog.0E-iods.4ma.ozeoMAIMR5 

L41505,0s2le 

ggm 4 ' 

i.4i 

iii 

5"2e..stt-agg1-407,g 

t1 

5 

.„ 

..... 

g 

44" OR gg 

-. 

NE 

E- 

-- E 

- 

132 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 
gg 

riZ 

ga 

133, E 

?i g P: 

Etq 

gE 

fin 

cc 

ER 

0000 00N000000 

o 

0 0•

4 0000000000 

a 

asasp 

2 2 

:111 a2 

8 24 

44 RA' 

y 14 E 11 l v. 2 44 g6 

Pn>it—,, —.sva Hg 

il4gzpe=ioelea 

ER 

0 

g4 

al 

RE 

„.; 

.0 0 

.03 

Os 

Numberof factories 2 

• 

0 

O 

q O

COO CV 

o 0 i'ZXXZ.:%.241 

cc 

EtVW4.14ggZ%4454tt 

Footnotesonp.135. 

0 

 a 

a:

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V

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O 4 .2 .74 

Ire3 

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1111 .

t 

co..

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d 

g

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g 

tl •

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go 

o 

C

6 -4 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICA

Cigarettesweighingnot morethan3 poundsperthousand 

Removed tax-paid 

i 

. OgOgg 

HUH§ 

R s -r 

rill a .

M

Ma

N 

1 

Removed without payment of tar 

y plo

MEE§ 

g$-g 

gggli 

FE 

g 

6 

1 

Forpersonal 

consumption 

t 

e 

R§ 

id, '6. 

E R 

Foruseof the 

United States 

ei 

gt 

§ 

ct i 

§ 

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seastores 

i 

.1. .14 

g 

S 

ggg 

ggg 

e 

a 

g 

g g 

Forexport 

t 41gg 

FIggg 

4, 

g 

4 

Manufactured 

, „! 

A glid44g 

§EF§E§§ 

kggil c, 4 g 

g 4 

ea

EEE

District' 

Albany 14th N.Y.) Greensboro N. C.) Cleveland 18th Ohio) Philadelphia (1

t Pa

) 

S 51 Mir- sh 2 a ° Et 

Sm 

a 

LG 

M CI CO. 

elg 

M J0 

I 

WS 

afi 

CI 0 V CO In 

B c R"P" cF.yst, BBBBEAcBSBc 9 RA cc: W c- PB2"- 'cle 

a g 

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a 

V a CI 

0 0. 

-5- 

Va. 

a 10 

-42 nc B ° " 

C0 

V 10 

40 a 01.a 

a ZMN .1 01 ..4.V,Iz a* g am 

REPORT OF COMMISSIONER OF INTERNAL REVENUE Retail dealers 

gAco- M ttRAYEARtiERRRRIEER5qRWAREEEAR .:geaaaaaaes,s%ea.: gaaaaa 72.; 

4,71" ; 03-ali aki-59 .9.P= RR4 4 :-_, siigggq.""inEci.2`4-' 

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a5 « 

1 T2 

42 

g1:3 

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138 

a 

t 

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0, 0 

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g 

tl g 

0. 12 

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0 

Fa 

Fa 

Fa 

I 

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STATISTIC

4 4 

.. . ^ N N Co 

, .. . Co. Co... - . . . . 

.. -.. Co 

"RIBP,B2M c P c r.7 - .V. .tc g 9 :2"9 

..., 9 0. 74 .... .01 Va./ . V (4 

..„..... -- .. ,.. NM-.N Co 

'E" Et "E' " .4 ga 

- " IT c c2R " 'c ' 

a 

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czFec:f aa..weaa..-a-zaa a i 

EP§EEngn ■ m PiEnrit2L3:Z$"r

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a 

an MVN . . 

N.* ' R 

cc... . -.

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8/ 

Pi 

,z $0m

.- .4000 

2410141i1441111

a 

ma0a442.40az0.44

0 0 4 2 
REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

9 f 13 G 10 161 a jl Illia W y la

4z 

ilg 

2.s 

.. . .. . . ... -.m. .< .. "R R -a 

2 s 0. 

A VFfr a lair 

- . .. . -,. - 

arc' 1$: g ella 

: . Manufacturersor t sz910 -su t 

- - 

94 00

I0 959

Fermented malt liquors 

0:1 

gt

giglifel 

-Uk 

a 

rra q§84 1Wir. 2 r. ORPNE9 -a "aroma* 

. 

44 6 .0 

Vu 

 . . .,.. . -.. . . 

. 

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ea 

RFAMPTatiglaIMPIIIHR§RI4E440.1g 

ea gp.:F.7eaa,:a ..!1 -reiregaceeeeee 

1 AS 4. 

s sn 

 Et" 

l*Piimlalg4421AHE 

.- 

WP" A4141 2 E4 2:04, .4.4 

Brewers 

500 barrels 

or more, 

$110 

„„ . . . w., 9 -.- 0... n ....- v...",0-. 54 - - .. 

4 4 

1§ ..... 

.. 

.... 

.. :: ... 

. ...... 

.... ... . 

: Internal revenueregionsand districts l 

m 

0 

' 

d>dig 

a Pg fr

1 

i2 

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a 

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444444 

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40 

419.4Ai> 

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1f4 asigssrif 

1 

4CA4M 

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migniv4snNxl garnnzgnm2firi 

n7: 0, R 22 '2 

,,:. 

§ER4FIRLe.WINPREEI4PEPET

eg4 e aeap:4,1 tfeaeeg.: e

Wan"q2 aWegniangrat 

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qss eig.. _±13 ..--.1 I . °

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kg 

b cg' t iot 

gI°i i 5i WE adi 

= fhiN91.114§t101113 

sum4M-00RARSgo8R3-4<aokimalOad1

a A 
liWerE32rq."32. 0PILIE p

e 

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cal ngtio 

r„ 

11441 .asli 3/

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momtraazo maim m

lootalleag - m - - 4° 24Z°' 1

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aB S iiRE 2 '1 2 r 

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t 

142 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

& e on

n

§ 

§ g-ap.7gtive. zflga-2E;gszgilg2gri-sgEERat211 

e..- -- r-rd n Po 04 0222

a

tf 

te ` 

Wholesale 

dealers, $250 PS OO n 

wsa '

Processor 

renovated 

butter 

021 

n ei

n

PI 1122 1 2 -2

 . ., 

Adulterated butter 

e 

rkg 

SA1 Wholesale dealers, $480 Manufac- turers, $600 

d devices,billiard,pool, vlingalleypremises 

Gaming device 

pre

mises, 

$250 

a gc°"""B" - " 74 

ti.-- 

gg;Lim. g 0.-.2.9g*gg-tzapar 

Amusement 

device 

Pre

mises, 

$10 

glgR§F§aTigIMEarie ARMEginni§ - -,:- e-r-weize-teoleee,,,Tee feaaeeeeegeaaaeee 

Billiard or 

poolroom 

and bowling 

alleyprem- ises, $20 

MAJWIMMERPARPEAEMMEgEinEl 

Internal revenueregionsand districts 

2 

2.4..., . 

g t.,4,s 

ell 

p._ 

.. p.. ,.. 

.4.. 

qggaililhig141114 

mNrIg 

d 

m 

2 

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.s Nif.s .8..... 

r-, .: 

;:igalg 

_-. 

g 

14 

.›...p..>4 

ti 

omozpaa.outx-4 

_ 

2 

.4g.1g4i 

47w.p

lir-z.z. 

a s 

a 

acco e_ 

1441111111 

6.1,6 

jemom,z 

.8 

AA 

A 
144 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICA

-

a 

`a 

O 

t"o 

S

g„ 

ai

ti 

.g 

T 

e

ro• 

p

mt 

j 

Ata 

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co 

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I 

cq 

F 

ro 

f.: g.O.RPAgRiCRAPREEfEinlgRiEgfiliRROR gidtedwr.TR...&gglagg.-fe4 srass!fgeeotTec5aeagEm: 

. .4 - R..a .44..."191.....- a.•.-. 

$ 

. 

Laboraories, 

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146 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 24.

-Summary of internal revenue stamps issued to district directors of internal 

revenue and the Postmaster General during the fiscal years 195 and 1953 

Rind 

Quantity Value 

1952 1953 1962 1953 

Liquors: 

Distilled spirits, bulk lots 

Distilled 334, 210 594, 570 $730, SW, 612 $953, 492, 218.50 spirits, cask stamp& 

Certificate of tax payment, distilled 637, 700 322, 500 346, 292, 790 207, 981, 375.00 

spirits for shipment m tank cars 

Exports (sees. 2878 and 2885 2885I. R. CI_ 

7, 200 

43, 200 

4, 400 

77, 600 (9

4 , 320 

(0 

Bottled-in-bond, 7, 760.00 

Bottled-in-bond, 

export (blue strips)._ 2,331, 400 2, 784,000 22, 902 23, 340.00 domestic (green strips)] 

Container 86, 625,000 114, 508,000 815, 588 1, 081, 330.00 

Rectification tax 

or bottle stamps (red strips)]. 1, 142, 751,000 1,401, 150, 500 11, 131, 631 13, 607, 193. 00 

Rectified, 298,800 348, 650 25, 719, 223 25, 267,056. 00 

Rectified, 

Puerto Rico 610,600 705, 200 377,000 449,644. 00 class A (tax-free) 

Alcohol warehousing 

Wholesale 

2,100 

52, 500 

2, Opp 

80,000 

(7) 

CO 

(0 

liquor dealers' packages 44, 800 35,600 Wine (0 2 

Fermented malt liquor 67,981, 750 34, 107,550 25, 540,000 82,195, 520.05 

Tobacco: 42,184, 556 43, 983, 440 729,972, 480 785, 733, 760.00 

Manufactured tobacco 

Snuff 1, 217, 850,880 1,142,890,720 22, 192,777 17,458,327. 81 

Cigars, large 312,980,882 297,593,620 4, 836,316 3, 861,452. 71 

Cigars, 192, 206,080 202, 722,180 48,002,176 48, 740, 409.36 small 

Cigarettes, 6, 677,000 7,112, 700 50, 475 53, 626.50 

Cigarettes, class B 

class A 19,357, 637, 200 9, 981,124,800 1,483,381,809 1,599, 195, 221.60 

Cigarettes, tubes 254, 400 70,200 44,643 15, 249.36 

Process butter 

Filled 113,000 68, 000 4,230 2,550.00 cheese 

Playing 16,370 1, 567.80 cards 

Documentary 57, 816,700 51,302, 200 7, 516, 171 6,669, 296.00 

Stock transfer 39,187, 888 41, 284,416 80, 401,669 102,675,071. 00 

Silver 4, 187, 688 3, 100 22, 221,394 7, 280.00 

Cereals 

transfer H, 080 5, 640 397, 026 95, 825.00 

)rder forms for opium ' 

daribuana 

9,451, 275 

1, 689, COO 

10, 727, 925 

1,708, 500 

385, 004 

16,890 

466, 422. 50 

17,085. 00 

)rder forms for maribuana 

Cations] Firearms Act (see. 27201 I.R,C.): 

Machine guns, silencers, etc 

guns Certain short 40 20 8,000 4, 000. 00 200 450 200 4W. CO ;peels] or occupational stamps 2,058,290 58, 770 687,900, 215 55, 497, 190.00 

Total 22, 546, 036,819 23, 335, 393,421 4,128, 065, 541 3, 004, 6130, 201.19 

7 Value inserted whenjpurchased. 

Have no money value. 

APPELLATE 

TABLES 25-37 
148 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 149 

TABLE 25.-Analysis of the work of the Appellate Division during the fiscal year 

1953, income, profits, estate, and gift tax cases 

PART I.-CASES NOT BEFORE THE TAX COURT (PRE-90-DAY AND STATUTORY 

NOTICE CASES) 

(A) PROGRESS OF WORK 

[Includes protested cases transfered from the conference sections of the offices of the former Internal Revenue 

Agents in Charge. (See p. 24.)1 

Number 

of cases 

Amount stated in Revenue Agent's 

report or in statutory notice. 

Deficiency 

in tax Penalty Ovmsammment 

Pending at beginning of year: 

Awaiting Appellate Division action 8, 887 MA 112, 443 $26,653,016 $82,196, 528 

Awaiting taxpayer's action on statutory notice 

directed or sustained 1, 210 46,368, 373 . 3, 484, 586 4,802, 650 

Received during year 11 20, 962 531, 661,063 59,615, 903 89, 423, 042 

Total 31, 039 900, 141,879 89, 753, 505 158, 421, 22) 

Disposed of: 

Closed 9, 675 162 963, 285 9, 869, 201 24,687,890 

Petitioned to the Tax Court 1,999 68, 417, WS 7, 592,771 4, 889, 656 

Total disposed of 11,674 221, 380, 513 17, 461, 972 29, 577, 546 

Pending at end of year: 

Awaiting Appellate Division action 17,990 635, 145, 008 67, 915, 582 123,967, 774 

Awaiting taxpayer's action on statutory notice 

directed or sustained 1,375 43, 616, 358 9, 375, 951 3, 375, 900 

Total 19,366 678, 761, 366 72, 291, 533 126, 843,674 

1 For cases originally received in pre-90-day status, amount determined by internal revenue agent; for 

cases originally received in 90-day status, amount of statutory notice; for estate tax cases net amount after 

deducting additional State tax credit allowable if substantiated. 

2 Receipts Include 10,069 cases transferred from internal revenue agents' conference sections merged into 

Appellate Division during the year under Reorganization Plan No. 1 of 1952. 

(B) RESULTS OBTAINED IN CASES CLOSED 

Number 

of cases 

Decision of Appellate Division 

Deficiency 

in tax Penalty Overassessment 

Agreements before statutory notice (Including agreed 

overassessments and agreed claim rejection) 7,661 $58,145,093 $3,768, 217 $26, 453, 098 

Agreements on agents' statutory notices during 90-

day period 429 627, 349 61,457 265,154 

Agreements on reconsideration after Appellate Division's statutory notices 76 410, 357 40,963 33,013 

Defaults on Appellate Division's statutory notices 

(no petitionfiled) 821 8,078,808 673, 002 872, 386 

Defaults on agents' statutory notices sustained by 

Appellate Division (no petition filed) 112 380,617 40,449 368 

Unagreed overassessments and claim rejections---_. 676 19,465 9,227 600,686 

Total 9, 875 67, 841, 679 4,593,315 28, 224, 697 

TABLE 2 5.-Analysis of the work of the Appellate Division during the fiscal year 

1953, income, profits, estate, and gift tax cases-Continued 

PART II.-CASES DOCKETED BY THE TAX COURT 

(PENDING SETTLEMENT OR TRIAL) 

(A) PROGRESS OF WORK 

Number 

of cases 

Amount stated in statuto y notice' 

Deficiency 

in tax 

Penalty Overassessmeat 

Pending at beginning of year 9,006 $506, 520, 690 $75, 590,965 $65, 404 758 

Received during year: 

Cases considered before petition 1,891 

Cases not considered before petition 5, 713 

Cases reopened after trial 73 

Total receipts 7, 877 239, 348, 479 57,236,977 1, WS, 607 

Total to be accounted for 18, 683 745,869,189 132, 827, 942 67, 294, 385 

Disposed of during year: 

Closed by stipulation-agreed settlement 4, 229 135,348, 692 11, 706, 523 24,830, 316 

Closed by dismissal or default 520 5, 980,165 2,138, 538 149,858 

Tried before the Tax Court on merits 1, 014 ao, 509, 529 3, 275, 742 1, 785,178 

Total disposed of 5,783 171, sas., ass 1 7, 120,803 26i 565,350 

Pending at end of year: 

In hands of echnical advisors 6,045 331,817,448 75, 824, 364 24, ginj 225 

In hands of di

t 

 vision counsel 4, 875 242, 213, 337 40, 082, 775 

, 

15,842,790 

Total 10, 920 574, 030, 783 115, 707,139 40, 729, 015 

1Includes amount of overassessments stated in statutory not ce, and, in addition, overassessments in 

certain associated rams in the amount determined by the internal revenue agent or the Appellate Division. 

For estate tax cases net amounts are used after deducting additional State tax credits allowable if sub 

stantiated. 

(B) RESULTS OBTAINED IN STIPULATED CASES 

Stipulations 

filed 

Number of cases 4,2M 

De $59,241,123 

InnaltY

ficiency in to 

4,996,099 

Overassessment 21,828,352 

Net deficiency and penalty 92,408, 910 
150 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 151 

TABLE 26.-Summary: Income, profits, estate, and gift tax appeals docketed, 

atipulaled, defaulted, and defended on the merits before the Tax Court, fiscal years 

1940 to 1953, inclusive 

Fiscal year Number 

docketed 

Number 

stipulated 

Number 

defaulted 

Defended 

on the merits 

1940 

1991 

1942 

1993 

1944 

1945 

1948 

1947 

1998 

1949 

1950 

1951 

1952 

1953 

Total 

4,240 

4,366 

3,678 

3,380 

3,178 

3,185 

2,777 

3,652 

4,402 

9,567 

5,362 

6,137 

6,870 

7,122 

WOHROIMER I 

W-08"47.1R10 

RgEff.§REMINi gi 

62, 884 38,371 9, 490 14, 745 

Source for columns 1 an 2: the Tax Court; for columns 3 and 4: the Appellate Division. 

TABLE 27.-Analysis of Appellate D vision work on compromise, extension of time, 

and final closing agreement cases, fiscal year 1953 

Compromise Eoletillsniem 

 cases iFning al eict 

meat cases eases 

On hand, Tuly 1, 1952 3, 425 1 11 Received (net) 1, 742 44 149 

Total to be disposed of 5,167 45 160 

Accepted, granted or approved 943 15 100 Rejected 

Withdrawn 1, 678 27 31 

288 Transferred 354 

Total disposed of 3, 263 42 131 

On hand, June 30, 1953 1,904 3 29 

TABLE 28.-Summary of receipts, dispositions, and pending inventories of nondocketed, docketed, and compromise work (income, profits, estate, and gift tax cases) 

in the Appellate Division, fiscal years 1944 to 1953, inclusive 

Cases 1944 1945 1996 1947 1948 1949 1950 1951 1952 1953 

NONDOCHICTS 

Receipts' 6,845 6,087 5,661 5,325 7,515 8,036 7,384 7,019 7,398 20,962 Dispositions 6, 980 5, 754 4, 579 5, 293 5.973 6, 108 6, 896 7,147 7, 528 11,879 Inventory 4,385 4, 718 6,800 5, 992 7,924 9,852 10, 39010, 207 10,077 19,385 

DOCKETS 

Receipts 1 278 3,181 2, 745 3,332 9, 598 9, 624 5,335 6, 115 6,434 7,877 Dispositions 3,019 2,922 2,816 2,988 3,879 4,484 4,097 4,941 9,971 5,763 Inventory 3, 738 3, 997 3,926 9, 272 4,991 5,131 8, 369 7, 543 9,006 0.920 

COMPROLOSE 

Receipts 783 960 787 1,075 1,629 2,434 3.810 3,862 3,184 1,742 Dispositions 817 815 702 883 1,293 1,992 2,327 3,348 3,445 3,2633 Inventor!, 419 504 649 881 1,197 1,689 3,172 3,686 3,425 1,904 

TOTAL 

Receipts I 10,906 10, 228 9,193 9, 73213, 742 15, 094 16, 529 8, 991 7,016 0,381 Dispositions 10, 316 9, 491 8, 097 9,092 10, 645 12, 534 3,320 15, 436 5,944 23, 700 inventory 8, 542 9, 279 10,376 11, 015 14 112 16, 672 9,881 1, 438 22,508 2, 189 Conferees 139 144 155 171 169 21 223 232 227 368 

Receipts of nondocketed cases for fiscal year 1953 include 10,089 cases transferred from internal revenue 

agents' conference sections merged into Appellate Division during the year under Reorganization Plan No. 1 of 1952. 

TABLE 29.-Progress in disposition of cases pending before the Tax Court, fiscal 

year 1963 ' 

Pending July 1, 1952 Filed or reopened 

during year 

Disposed of during 

year 

Pending Time 30, 

1953 

Kind of tax 

I 

Nam- Amount in Amount in Amount in Amount In 

ber dispute dispute dispute dispute 

Income and profits__ 9,435 $1, 248, 414, 878 7,181 $643,472,815 6,288 $272,793,315 11,328 $1, 519, 144,376 

Estate and gift 681 99,172, 591 432 30,459, 907 404 31, 275, 852 689 93,356,848 

Processing 38,153,858 8,152, 3 8,152, 858 

Total 10,099 1,350, 740,325 7,593 573,932, 722 5,675 31$171,825 12, 017 1,612, 501, 222 

TABLE 30.-Analysis of cases disposed of in the Tax Court, fiscal year 1953 

Basis of closing Nbme., - 

"' 

Amount in dispute Amount approved Saved or recovered 

Deficiency Overpaymen 

Deficiency Overpayment Amount' 

Percentamount 

pute in dispute 

Income and profits: 

Dismissed 517 $8, 088, 823 $5, 854, 886 $7, 497, 967 $44,021 $13, 308, 832 95. 4 

Decision on merits_ 865 37, 607, 406 22, 689, 388 18,830, 936 1,575, 367 39,944,957 68.2 

Agreed settlement. 3,888 124, 595, 021 73, 907, 791 67, 990, 345 1, 235,431 130, 682, 705 65.8 

Total 5,268 170,291, 250 102, 452, 065 84,319,248 2, 864, 819 183,918, 494 67.4 

Estate and gift: 

Dismissed 29,880 29,880 29,880 100.0 

Decision on merits. 4, 830,821 3,108, 312 3, 109, 159 21, 343 6, 286,128 80.3 

Agreed settlement__ 22, 480,194 956,445 6, 296, 917 17,002 7,188, 380 30.7 

Total 404 27,120, 995 4,154, 757 9, 385, 958 38, 345 13, 502, 368 43.2 

Processing 3 8,15$ 858 975, 505 7, 177,353 88.0 

Grand total 5, 675 197, 412,145 114, 759, 680 93, 705, 204 3, 888, 669 get 598( gag 65.5 

Amount of deficiency approved plus excess of overpayment in dispute over overpayment approved. 

TABLE 31.-Tax Court cases on review in courts of appeals or Supreme Court, 

fiscal year 1953 

Kind of tax 

Pending July 1, 

1952 

Appealed during 

year 

Dispo ed of during 

year 

Pending June 30, 

1953 

Nunber Amount Nunber Amount Nem- her Amount Nam' ber Amount 

Income and profits_ _. 

Estate and gift 

Total 

401 

18 

$35, 804,136 

3,210, 128 

321 

13 

$26, 089, 635 

6,919, 371 

323 

11 

631,254,642 

614,598 

IR 

$30,839,129 

9, 519, 903 

419 39,014, 204 334 33,009,006 334 31,869, 228 419 40,154, 032 
Appealed during year: 

By Commissioner 

By taxp 

By both ayers 

93 

232 

 9 

414 

748 

178 

128 

22 

4 

332 

85 

314 

17 

152 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 153 

TABLE 32.-Analysis of Tax Court cases on review in courts of appeals or Supreme 

Court, fiscal year 1953 

IN COURTS OF APPEALS 

Pending July I, 1952: 

Appealed by Commissioner 128 Appealed by taxpayers 

Appealed by both 270 

 18 

334 

Total to be disposed of 

Disposed of during year: 

Favorable to Commissioner 

Favorable to taxpayers 

Modified 

Appealed to Supreme Court 

Pending June 30,1953: 

Appealed by Commissioner 

Appealed by taxpa 

Appealed by both yers 

416 

IN SUPREME COURT 

Pending Rdy1,1952: 

Appealed by taxpayers 

Appealed during year: 

By Commissioner 

By taxpayers 

4 

Total to be disposed of 

Disposed of during year: 

Favorable to Commissioner 

Pending June 30,1953: 

Appealed by taxpayers 

TABLE 33.-Suits by taxpayers, fiscal year 1953 1 

Courts 

Pending July 1, 

1952 2 

Inst tuted dtu, 

 lug year 

Closed durIng Year I 

A mount coded 

Pend July 1, 

1953 I 

JectudIN 

Amount 

in dispute 

Amount 

in dispute 

iequntm 

Amount 

in dispute 

Pereen tag funded I secrunisi 

Amount 

in dispute 

Court of Claims 

District courts 

Total 

325 

2,247 

$43, 185,181 

62,173, 5021, 

159 

037 

$32, 173,738 

31,411,761 

79 

75117,484.208 

$4, 870, 206 $1, 569, 772 

11, 149,636 

32. 2 

63.8 

$70,488,693 

76,101,056 

2,572 05,358,683 1,196 63,585,499 830 22,354,414 2, 719,408 56, 2,938 46,599,748 

1 Primarily suits for refund of taxes or to enjoin the collect on of taxes (other than those re sting to alcohol, tobacco, and firearms taxes). 

I Includes 9 processing tax cases; I pending in Court of Claims, $46,207 n dispute S pending in district courts, $396,677 in dis ute. 

Includes I processing tax case in district court, $130,674 in dispute, nothing refunded. 

Includes 8 processing tax cases; 1 pending in Court of Claims, $46,237 in dispute 7 pending in district courts, $286,003 in dispute. 

TABLE 34.-Claimg and suits by the United States,' fiscal year 1963 . 

Status Number 

in suit 

umber not in N 

suit 

Total 

number 

Amount in 

dispute 

Amount recovered 

Percentage 

of recovery 

Pendiivn:dIuldy244952 

year for 

E 

436 719 $48, 409 080.26 

institution of suit 445 445 544,011. 57 

Total 881 Suits instituted during year_ 259 

Total to be accounted for 642 622 1,164 48, 949 071.83 Closed during year 103 133 236 3, 878, 990. 74 $1,415, 6511.59 36.5 

Pending July 1, 1953 439 489 928 45,070,081.09 

Primarily suits to collect taxes or to recover erroneous refunds (other than those relating to alcohol, tobacco and firearms taxes). • 

TABLE 35.-Lien cases, fiscal year 1953 

Status 

Cases in court I Cases not in court 

Number Amount 

collected Number Amount 

collected 

Pending July 1, 1952 1,001 103 Instituted or received during year 1, 222 812 

Total to be disposed of 2,223 915 

Closed during year 

Pending June 30, 1953 911 

1,312 

$477,588 631 

284 

$2,647,416 

Primarily suits for foreclosure or to quiet title by mortgagees and other secured creditors, to which the 

United States is made a party. 

Primarily applications for discharge:of property from tax liens. 

TABLE St-Insolvency and other debtor proceedings, fiscal year 195 

Status 

Reorganizetion proceedlugs ' 

Bankruptcy and receiver- hi proceedInes 

Mhoellaneous proceedtogs s 

• Total 

Cases pending July 1, 1952 1, 099 7,137 4,431 12,687 Initiated during year (net) 2 828 5, 796 2, 772 9, 398 

Total to be disposed of 1, 927 12, 933 7, 203 22, 063 

Closed during year 628 5,904 2, 434 8, 964 Cases pending June 30, 1953 1, 301 7,029 4, 789 13,099 

Proceedings instituted under the following sections or chapters of the Bankruptcy Act: Sections 75 

(agricultural compositions and extensions) and 77 (railroad reorganizations) and chapters It (corporate 

reorganizations), XI (arrangements of unsecured indebtedness), XII (real property arrangements) and XIII (wage earners' plans) which involve tax claims and other rights and interests of the United States. 

Strict bankruptcy proceedings and Federal or State receivership proceedings which involve tax claims of the United States. 

8 Proceedings relating to corporate dissolutions, insolvent banks, assignments for the benefit of creditors 

or administration of estates of decedents which involve tax claims of the United States. 

Reflects adjustments for proceedings shifted from reorganization to bankruptcy and receivership (227) 

from reorganization to miscellaneous proceedings (2) from bankruptcy and receivership to reorganization 

(13), and from miscellaneous to bankruptcy and receivership (12). 

1 

3 

9 

6 

3