ANNUAL REPORT 

OF THE 

COMMISSIONER OF 

INTERNAL REVENUE 

FOR THE FISCAL YEAR ENDED JUNE 30 

1941 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1941 

For We by the Superintendent of Documents, Washington D C Price 25 cents (paper cover 
CONTENTS 

Page 

Introduction 1 

Collections 1 

Cost of administration 4 

Personnel 4 

Important legislative and other changes affecting the Bureau 5 

Accounts and Collections Unit: 

Assessments of employment taxes 10 

Taxes under Federal Insurance Contributions Act 11 

Special refunds 12 

Offers in compromise 12 

Coordination with Social Security Board 12 

Tax under the Federal Unemployment Tax Act 13 

Offers in compromise 15 

Carriers taxes (Chapter 9, Subchapter B, I. R. C.) 15 

Coordination with Railroad Retirement Board 16 

Income Tax Unit: 

General functions 16 

Income and excess profits taxes 17 

Collections 17 

Returns filed 17 

Examination of income and excess profits tax returns upon receipt 18 

Investigation of income tax returns by field offices 19 

Revenue results of investigation of income and declared value 

excess profits tax returns 20 

Stage at which additional tax was assessed 20 

Refunds, abatements, and credits 21 

Inventory of' returns on hand in field offices as of June 30, 1941_ 22 

Miscellaneous Tax Unit: 

Estate Tax Division: 

Returns 24 

Claims 24 

Court decisions 25 • 

Tobacco Division 26 

Sales Tax Division: 

Admission taxes 29 

Documentary stamp taxes 29 

Playing cards 29 

Oleomargarine; adulterated, process, or renovated butter 29 

Mixed flour 29 

Firearms 29 

Narcotics and marihuana 30 

Bituminous coal 30 

Silver tax 30 

Hydraulic mining 30 

Assessments 30 

Field reports and returns 30 

Claims 30 

Credit cases 31 

Offers in compromise 32 

Miscellaneous tax special squads 32 

Court decisions 32 

Capital Stock Tax Division 32 

Processing Tax Division 33 

Sugar tax 33 

Claims 34 

Alcohol Tax Unit: 

Procedure Division 35 

Statistics 35 

Ethyl and denatured alcohol 36 

Distilled spirits 36 

Hi 

TREASURY DEPARTMENT 

Document No. 3110 

Internal Revenue 
IV CONTENTS 

Alcohol Tax Unit—Continued. 

Procedure Division—Continued. 

Rectified spirits 

Fermented malt liquors 

Wines 

Enforcement Division 

Field Inspection Division 

Laboratory Division 

Audit Division 

Assessments 

Offers in compromise— 

Liquor taxing laws 40 

Federal Alcohol Administration Act 40 

Basic Permit and Trade Practice Division 40 

Technical Staff 42 

Facilities offered by Technical Staff for settlement of tax disputes _ _ _ 42 

Field operations 45 

Coordination of field activities 46 

Compromises, extensions of time, and closing agreements 47 

Office of the Chief Counsel: 

Appeals Division 49 

Civil Division 49 

Compromise Section 50 

Interpretative Division 50 

Penal Division 50 

Review Division 51 

Legislation and Regulations Division 51 

Alcohol Tax Division 51 

Intelligence Unit 52 

Conclusion 53 

STATISTICAL TABLES 

RECEIPTS FROM INTERNAL-REVENUE TAXES 

Table 

1. Receipts from specified sources of internal revenue, fiscal year ended 

June 30, 1941, by collection districts, States, and Territories 56 

2. Comparative internal-revenue collections, fiscal years 1940 and 1941, 

by collection districts, States, and Territories 92 

3. Summary of internal-revenue collections, year ended June 30, 1941, 

by States and Territories 96 

4. Summary of monthly internal-revenue tax receipts for the fiscal year 

ended June 30, 1941, by sources 98 

5. Summary of internal-revenue collections, years ended June 30, 1940 

and 1941, by sources 104 

6. Total internal-revenue collections, years ended June 30, 1863 to 1941_ 106 

7. Internal-revenue tax on manufactured products from the Philippine 

Islands, fiscal years 1940 and 1941, by objects of taxation 107 

8. Internal-revenue tax on manufactured products from Puerto Rico, 

fiscal years 1940 and 1941, by objects of taxation 107 

INCOME-TAX AUDIT 

9. Additional income tax assessments on the Commissioner's and 

collectors' lists made during the fiscal year 1941, by tax years 108 

10. Tax items appealed to the United States Board of Tax Appeals, fiscal 

year 1941 111 

TOBACCO, CIGARS, CIGARETTES, ETC. 

11. Manufactured tobacco: Number of factories operated, leaf tobacco 

and other materials used, calendar year 1940, by collection districts 

and by States 112 

12. Manufactured tobacco: Quantity manufactured, on hand at commencement and close of year, removed for export and tax-paid, 

calendar year 1940, by collection districts and by States 114 

13. Cigars weighing more than 3 pounds per thousand: Number of factories operated, quantity of tobacco used, number of cigars manufactured, on hand at commencement and close of year, removed for 

export and tax-paid, calendar year 1940, by collection districts and 

by States 116 

CONTENTS V 

Table Page 

14. Cigars weighing more than 3 pounds per thousand: Number removed 

tax-paid, by classes, calendar year 1940, by collection districts and 

by States 118 

15. Cigars weighing more than 3 pounds per thousand: Manufactured 

and removed tax-paid for domestic consumption from customs 

bonded manufacturing warehouses, class 6, by classes, calendar 

year 1940 120 

16. Cigars weighing not more than 3 pounds per thousand: Quantity of 

tobacco used, number of cigars manufactured, on hand at commencement and close of year, removed for export and tax-paid, 

calendar year 1940, by collection districts and by States 121 

17. Cigarettes weighing not more than 3 pounds per thousand: Number 

of factories operated, quantity of tobacco used, number of cigarettes manufactured, on hand at commencement and close of year, 

removed for export and tax-paid, calendar year 1940, by collection 

districts and by States 122 

18. Cigarettes weighing more than 3 pounds per thousand: Quantity of 

tobacco used, number of cigarettes manufactured, on hand at commencement and close of year, removed for export and tax-paid, 

calendar year 1940, by collection districts and by States 124 

19. Leaf tobacco used in manufacturing cigars, cigarettes, and tobacco 

and snuff, calendar years 1931 to 1940 125 

20. Production of manufactured tobacco, snuff, cigars, and cigarettes, 

calendar years 1931 to 1940 125 

21. Summary of operations of manufacturers of tobacco and cigars, calendar year 1940 126 

22. Exportation in bond of manufactured tobacco, snuff, cigars, and cigarettes, etc., year ended June 30, 1941, by collection district8 128 

23. Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes 

from factory in bond, for shipment or delivery as sea stores, fiscal 

year ended June 30, 1941 129 

24. Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes 

from bonded internal revenue tobacco sea stores warehouses, for 

shipment or delivery as sea stores, fiscal year ended June 30, 1941_ _ 130 

25. Drawback of internal-revenue taxes allowed on tobacco, snuff, cigars, 

and cigarettes exported, year ended June 30, 1941, by ports, and 

comparative totals for years ended June 30, 1936 to 1940 130 

26. Domestic and imported cigarette papers and tubes withdrawn and 

internal-revenue receipts from taxes during fiscal years ended June 

30, 1932 to 1941, inclusive 130 

27. Tobacco products withdrawn for consumption, computed from collections from the sales of stamps, fiscal year 1941 131 

28. Dealers in leaf tobacco in business, leaf tobacco exported and received 

from farmers, calendar year 1940, by collection districts and by 

States 132 

29. Leaf tobacco imported by cigar manufacturers, tobacco manufacturers, and dealers in leaf tobacco, calendar year 1940, by collection 

districts and by States 134 

30. Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1940 136 

31. Tobacco material held or owned by dealers in leaf tobacco, cigar and 

tobacco manufacturers on January 1, 1941, by collection districts 

and by States 137 

OCCUPATIONS SUBJECT TO SPECIAL TAXES 

32. Number of each class of special-tax payers purchasing special-tax 

stamps covering the fiscal year 1941, or portion thereof, under the 

various annual rates, by collection districts and States 139 

OLEOMARGARINE, RENOVATED BUTTER, MIXED FLOUR, ETC. 

33. Production and withdrawals of colored oleomargarine, year ended 

June 30, 1941, by collection districts 

34. Production and withdrawals of uncolored oleomargarine, year ended 

June 30, 1941, by collection districts 

Page 

36 

36 

36 

37 

37 

38 

40 

40 

145 

145 
CONTENTS 

Table 

35. Production and withdrawals of oleomargarine (colored and uncolored), 

year ended June 30, 1941, by months 

36. Summary of production and withdrawals of oleomargarine (colored 

and uncolored), years ended June 30, 1932 to 1941 

37. Materials used in the manufacture of oleomargarine (colored and uncolored), year ended June 3b, 1941 

38. Production and withdrawals of renovated butter, year ended June 30, 

1941, by collection districts 

39. Summary of production and tatapaid wi hdrawals of renovated butter, 

years ended June 30i 1932 to 1941- 

40. Production and withdrawals of mixed our, year ended June 30, 1941, 

by collection districts41. Pmduction, importation, and wit drawals of playing cards, by 

months, year ended June 30,_194 

ALCOHOL, DISTILLED SPIRITS, BEER, ETC. 

42. Ethyl alcohol:• Production and withdrawals, by months, fiscal year 

1941 

43. Ethyl alcohol: Plants and bonded warehouses operated, production, 

withdrawals, warehouse losses, and stocks remaining in bonded 

warehouses June 30, by States, fiscal year 1941 

44. Ethyl alcohol: Withdrawals, tax-paid and tax-free, by States, fiscal 

year 1941 

45. Ethyl alcohol: Materials used in production, by kinds and by States, 

fiscal year 1941 

46. Ethyl alcohol: Production, by kinds of materials used, fiscal year 

1941 

47. Ethyl alcohol: Production, tax-paid withdrawals, withdrawals for denaturation, and stocks on hand June 30, 1934-1941, inclusive_ _ _ _ 

48. Denatured alcohol: Plants operated, production, withdrawals, and 

stocks on hand June 30, by States, fiscal year 1941 

49. Denatured alcohol: Production, by months, fiscal year 1941 

50. Completely denatured alcohol: Withdrawals, by formulas and by 

months, fiscal year 1941 

51. Specially denatured alcohol: Withdrawals, by formulas, fiscal year 

1941 

52. Specially denatured alcohol: Withdrawals, by leading formulas and 

by months, fiscal year 1941 

53. Specially denatured alcohol: Operations of bonded dealers, by States, 

fiscal year 1941 

54. Specially denatured alcohol: Operations of manufacturers, by States, 

fiscal year 1941 

55. Distilled spirits: Number of distilleries and internal-revenue bonded 

warehouses operated, by States, fiscal year 1941 

56. Distilled spirits: Production, by kinds and by months, fiscal year 

1941 

57. Distilled spirits: Production, by kinds and by States, fiscal year 1941_ 

58. Distilled spirits: Brandy produced, by kinds and by States, fiscal 

year 1941 

59. Distilled spirits: Total withdrawals, tax-paid, by kinds and by 

months, fiscal year 1941 

60. Distilled spirits: Total withdrawals, tax-paid, by kinds and by 

States, fiscal year 1941 

61. Distilled spirits: Bottled-in-bond withdrawals, tax-paid, by kinds and 

by months, fiscal year 1941 

62. Distilled spirits: Bottled-in-bond withdrawals, tax-paid, by kinds and 

by States, fiscal year 1941 

63. Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by States, June 30, 1941 

64. Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by years and seasons of production, June 

30, 1941 

65. Distilled spirits: Losses in internal-revenue bonded warehouses from 

leakage and evaporation, by kinds of spirits and by States, and 

other losses, by kinds of spirits, fiscal year 1941 

66. Distilled spirits: Grains and molasses used in production, by States, 

fiscal year 1941 

Page 

146 

147 

147 

147 

147 

148 

148 

149 

149 

150 

150 

151 

151 

151 

152 

152 

152 

153 

153 

154 

155 

155 

156 

156 

157 

157 

158 

158 

159 

159 

160 

160 

CONTENTS 

Table 

67. Distilled spirits: Materials used in the production of brandy, by kinds 

- and by States, fiscal year 1941 

68. Rectified spirits and wines: Production, by kinds and by months, 

fiscal year 1941 

69. Rectified spirits and wines: Number of plants operated and production, by kinds, by States, fiscal year 1941 

70. Rectified spirits and wines: Alcoholic liquors used in rectification, by 

kinds and by months, fiscal year 1941 

71. Rectified spirits and wines: Alcoholic liquors used in rectification, by 

kinds and by States, fiscal year 1941 

72. Distilled spirits: Wine gallons of spirits bottled by rectifiers and taxpaid bottling houses and bottled-in-bond spirits withdrawn on payment of tax from internal revenue bonded warehouses, fiscal year 

1941 

73. Distilled spirits: Production, tax-paid withdrawals, and stocks on hand 

June 30 of whisky and of total distilled spirits, fiscal years 1934-

1941, inclusive 

74. Fermented malt liquors: Production and tax-paid withdrawals, by 

months, fiscal year 1941 

75. Fermented malt liquors: Breweries operated, production, withdrawals, losses, and stocks on hand June 30, by States, fiscal year 

1941 

76. Fermented malt liquors: Withdrawals, tax-paid and tax-free, by 

States, fiscal year 1941 

77. Fermented malt liquors: Materials used in production, by kinds and 

by States, fiscal year 1941 

78. Fermented malt liquors: Production, tax-paid withdrawals, and 

stocks on hand June 30, 1934-1941, inclusive 

79. Cereal beverages: Plants operated, production, and withdrawals, by 

States, fiscal year 1941 

80. Still wine: Production and withdrawals, by months, fiscal year 1941_ _ 

81. Still wine: Bonded wineries and bonded storerooms operated, production, withdrawals, losses, and stocks on hand June 30, by States, 

fiscal year 1941 

82. Still wine: Tax-paid withdrawals and stocks on hand June 30, by 

alcoholic grades and by States, fiscal year 1941 

83. Still wine: Amelioration and fortification occurring after fermentation, by States, fiscal year 1941 

84. Still wine: Materials used in production, by kinds and by States, 

fiscal year 1941 

85. Sparkling wine: Production and tax-paid withdrawals, by months, 

fiscal year 1941 

86. Sparkling wine• Number of producers, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1941__ _ _ 

87. Sparkling wine: Tax-paid withdrawals and stocks on hand June 30, 

by size of container and by States, fiscal year 1941 

88. Vermouth: Production and tax-paid withdrawals, by months, fiscal 

year 1941 

89. Vermouth: Number of premises operated, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1941__ 

90. Still and sparkling wines: Production, tax-paid withdrawals, and 

stocks on hand June 30, 1934-1941, inclusive 

91. Enforcement, Alcohol Tax Unit: Seizures and persons arrested, by 

months, fiscal year 1941 

92. Enforcement, Alcohol Tax Unit: Seizures and persons arrested, by 

States, fiscal year 1941 

TECHNICAL STAFF 

93. Analysis of the work of the Technical Staff during fiscal year 1941-

Income, profits, estate, and gift tax cases 

94. Analysis of work on compromise, extension of time, and final closing 

agreement cases, fiscal year 1941 

OFFICE OF THE CHIEF COUNSEL 

95. Appeals Division: Cases appealed to Board of Tax Appeals, including 

those appealed from Board decisions to appellate courts, fiscal year 

1941 

VII 

Page 

161 

161 

162 

162 

163 

163 

164 

164 

165 

166 

167 

167 

168 

168 

169 

170 

170 

171 

172 

172 

173 

173 

174 

174 

174 

175 

176 

177 

178 
$731,406,439. 

435,637,150.42

83 

8,872,432.17 

164,308.967.23 

729,650.66 

559,383.19 

-20.36 

VIII CONTENTS 

Table Page 

96. Appeals Division: Number, and amounts of cases shown in table 95 

for the fiscal year 1941 only, by class of tax and amounts involved.. 178 

97. Appeals Division: Circuit and Supreme Court cases pending June 30, 

1941 178 

98. Appeals Division: Status of cases pending before Board of Tax 

Appeals June 30, 1941 179 

99. Appeals Division: Progress of cases in appellate courts on appeals 

from decisions of the Board of Tax Appeals 179 

100. Appeals Division: Results obtained in cases closed before the Board 

of Tax Appeals during the fiscal year 1941 179 

101. Appeals Division: Disposition of cases by Board of Tax Appeals 

during fiscal year 1941 179 

102. Appeals Division: Number, and amounts, of cases pending in field 

divisions, by class of tax and amounts involved 180 

103. Appeals Division: Disposition of cases by United States Board of 

Tax Appeals during fiscal year 1941 180 

104. Appeals Division: Cases appealed to United States Processing Tax 

Board of Review, including those appealed to appellate courts, 180 

fiscal years 1938-1941 

105. Appeals Division: Number, and amounts, of cases shown in table 104 

for fiscal year 1941 only, by class of tax and amounts involved 180 

106. Appeals Division: Status of cases pending before United States Processing Tax Board of Review June 30, 1941 181 

107. Appeals Division: Results obtained in eases closed before the United 

States Processing Tax Board of Review during fiscal year 1941 _ _ _ 181 

108. Appeals Division: Civil cases received and disposed of by the Processing Tax Section, Appeals Division, and number decided by courts 

during fiscal year 1941 181 

109. Appeals Division: Interpretative, corporate reorganization, and 

bankruptcy and receivership cases disposed of by Processing Tax 181 

Section, Appeals Division, during fiscal year 1941 

110. Appeals Division: Review cases received and disposed of by the 

Processing Tax Section, Appeals Division, for the fiscal year 1941_ 

111. Civil Division: Cases received and disposed of during the fiscal year 

1941 

112. Civil Division: Results obtained in cases closed during the fiscal 

year 1941 

113. Civil Division: Results obtained in lien cases closed during the fiscal 

year 1941 

114. Civil Division: Civil cases pending at the beginning and end of the 

fiscal year 1941 

115. Civil Division: Number of Civil Division cases tried by the Department of Justice and the number decided by the courts during the 

fiscal year 1941 

116. Civil Division: Number of cases received and disposed of during the 

fiscal year 1941 

117. Civil Division: Classification and tax liability involved in cases 

pending June 30, 1941 

118. Interpretative Division: Number of cases received and disposed of 

during the fiscal year 1941 

119. Review Division: Number of cases received and disposed of during 

the fiscal year 1941 

120. Review Division: Public decisions, promulgated under Treasury 

Decisions 4264 and 4583, during the fiscal year 1941 

MISCELLANEOUS STATISTICS 

121. Moneys paid to collectors as proceeds of In rem actions, judgments 

recovered in civil suits, fines and penalties imposed in criminal 

actions, and costs, as reported by clerks of United States courts 

(Form 158), year ended June 30, 1941 185 

122. Expenses of the Internal Revenue Service, fiscal year ended June 30, 

1941 186 

123. Summary of internal-revenue stamps issued to collectors of internal 

revenue and the Postmaster General during the fiscal years 1940 

and 1941 195 

124. Cost of printing and binding for the Internal Revenue Bureau and 

Service, fiscal years 1940 and 1941 195 

ANNUAL REPORT 

OF THE 

COMMISSIONER OF INTERNAL REVENUE 

TREASURY DEPARTMENT, 

OFFICE OF COMMISSIONER OF INTERNAL REVENUE, 

Washington, D. C., October 31, 1941. 

The honorable the SECRETARY OF THE TREASURY. 

SIR: I have the honor to submit the following report upon the 

work of the Bureau of Internal Revenue for the fiscal year ended 

June 30, 1941: 

COLLECTIONS 

Total collections of internal revenue taxes during the year I 

amounted to $7,370,108,378, as compared with $5,340,452,347 during 

the fiscal year 1940, an increase of $2,029,656,031, or 38 •per cent. 

This collection is the largest fiscal year collection in the history of 

the Bureau. 

Income tax collections received during the March and June quarters, 

1940, which included the first two quarterly payments on 1939 earnings, amounted to $1,313,014,582, while the corresponding figures for 

the year of this report are $2,248,777,289-an increase of $935,762,707. 

The taxes imposed on 1940 incomes were levied under the Revenue 

Act of 1940 and the Second Revenue Act of 1940. These acts provide 

for increased rates and for an additional defense tax of 10 per cent on 

incomes. The defense tax levy and increased rates, together with 

better business conditions throughout the country, contributed to 

the increased collections. 

The following table shows the increases or decreases in general 

sources of internal revenue for 1941 compared with 1940: 

Summary of collections, fiscal years 1940 and 1941 

Increase, or decrease (-) 

General source 

Per cent 

Income taxes: 

Corporation income tax $1,120, 581, 550.75 

Individual income tax 982, 017, 376.17 

Exeem-profits tax, declared value_ 17,047,134.68 

Excess-profits tax, Second Revenue 

Act of 1940 

Excess-profits tae, Vinson Act_ 1,427,087.15 

Unjust enrichment tax 8, 538,178.32 

Dividend tax I (repealed) 20.36 

Total 2,129, 609,327.43 

Alcohol taxes: 

Distilled spirits, imported, excise 

tax. 27,874,052.19 34,889.895.90 7,015, 843.71 

Distilled spirits, domestic, excise 

tax 289. 857,903. 07 393, 751, 625. 27 103,893,722. 20 

Distilled spirits, rectification tax.. 11,854, 090.97 13,460, 554.79 1,606,463.82 

I Tax due on dividends declared between June 16 and Dee. 31, 1933. 

I The year, unless otherwise noted, means the fiscal year ended June 30. 1941. 

1 

182 

182 

182 

183 

183 

183 

183 

184 

184 

184 

184 

1940 

Fiscal year 

1, 851,987,990. 58 

1,417,655,126. 59 

25,919, 566.85 

164, 308,987.23 

2, 156,717.81 

9,095, 561. 51 

3,471,123.930. 57 

1941 

1,341,514,603.14 

Amount 

65. 3 

44.4 

52.0 

51.1 

6.6 

63.0 

25.2 

85.8 

13.6 
2 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Summary of collections, fiscal years 1940 and 1941—Continued 

General source 

Fiscal year Increase, or decrease (—) 

1940 1941 Amount Per cent 

Alcohol taxes—Continued. 

Floor taxes (on stocks of Jan. 12, 

1934, June 30, 1938, and Juno 30, 

1990) 

Bottle or container stamps 

Wines, including fortifying brandy 

Fermented malt liquors, excise taxSpecial, or occupational, taxes 

Total 

Miscellaneous taxes: 

Capital stock tax 

Estate and gift taxes__ 

Tobacco taxes 

Sales taxes (manufacturer's excise 

taxes, admissions, communications, oleomargarine, documentary stamps, coal, etc.) 

Sugar tax 

Total 

Employment taxes: 

Federal Insurance Contributions 

Act 

Federal Unemployment Tax Act_ . 

Carriers taxes_ 

Total 

Total, all collections 

$12, 201 32 

11, 22A, 905. 49 

9, 366,706. 29 

264, 579,036. 03 

9,484, 261.75 

$25, 304,050. 09 

11,162,805.62 

12,819,857.91 

816,741,027.11 

11,926,361.64 

$25,291,849.77 

—62,099.87 

3,453,151 82 

52,161,991 08 

2,442, 099.89 

—0.6 

36.9 

19.7 

25.7 

624, 253,156.11 820, 056,178.33 195,803,022.22 31.4 

132, 738, 537.17 

360,071,186.94 

608, 518,443. 59 

583,595, 382.97 

M1145,357.56 

166,652,639. /18 

407,057, 747. 52 

698,076,890.87 

806, 449, 089900. 51 

74,834939.60 

33,914,102.71 

46,986,580.58 

89,558,497.28 

. 

. 

222,854, 318.04 

6, 689,482.04 

25.5 

13.0 

19.7 

38.2 

9.8 

1, 753,068,887.73 2,153, 071,809.38 400,002,920. 65 22.8 

605,350,175.64 

106,123, 156.21 

122, 047,643.86 

697, 327,651.09 

100,657,721.58 

137,871,187.71 

81,977, 375.45 

—5,465,434. 63 

15,823, 544.05 

13.5 

—5.2 

13.0 

833, 520,975.51 925,856,460.38 92, 385,484.87 11.1 

5,340,452,346.78 7, 370,109,377.66 2,029, 656, 030.88 38.0 

Comparative statement of tax collections by quarters, fiscal years 1940 and 1941 

Quarter ended— Income taxes 

Miscellaneous 

internal-revenue 

taxes 

Employment 

taxes, including 

carriers taxes 

Total collections 

Sept. 30, 1939 S404, 101,228.59 $735,155,042.82 $182, 509, 494. 71 $1, 321, 765, 786.12 Dec. 31, 1939 385,983, 116. 56 552, 5011, 230.89 192, 865,039. 17 1, 130,898,386. 62 

Mar. 31, 1940 766,069,685. 99 534,411, 289.61 252,032, 566.66 1,552,483, 541.65 

June 30, 1940 548,944,895.78 582, 265, 881.64 206,143, 874.97 1, 335, 354, 652.39 

Fiscal year 1940 2, 102,598,925 92 2,409, 332 444.35 833,520, 975.51 5, 340, 452, 346.78 

Sept. 30, 1940 505, 931,630. 06 808, 885,033. 53 206,025,497. 28 1, 520, 842, 160. 87 

Dec. 31, 1940 514,934, 197. 64 730, 853, 160. 81 208,466, 752.52 1,463,754, 110. 97 

Mar. 31, 1941 1, 275.183,095.86 780.528,923.02 272, 587, 516. 36 2, 328, 209, 535. 24 

June 30, 1941 973,594,193.61 854,841,682. 75 238, 776,694.22 2,067, 212, 570.58 

Fiscal year 1941 3,269,843, 117. 17 3,174,608,800.11 925, 856,460. 38 7, 370, 108,377.66 

Nora.—The Revenue Act of 1940 became effective July 1, 1940, increasing the majority of tax rates by 

approximately 10 per cent. 

The capital stock tax is due to be paid in the September quarter and the gift tax in the March quarter. 

Other miscellaneous taxes are payable monthly. The March quarter includes full-paid calendar year Income tax returns. 

In the appendix will be found tables showing the amount of internal 

revenue tax receipts in detail for the year, with statements of comparative collections by districts, States, and Territories, during the 

fiscal years 1940 and 1941. Tables are presented also showing the 

quantities of liquor, tobacco, oleomargarine, etc., tax-paid for consumption. 

Additional assessments.—The additional assessments, including interest and penalties, resulting from office audits and field investigations made during the fiscal years 1940 and 1941, were as follows: 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 3 

Class of tax 

Fiscal year 

1940 1941 

Income $291,198,664. 00 $269, 725, 157. 011 

Miscellaneous internal revenue: 

Estate 52 350,045.30 55,539, 688.33 

Gift 6, 364, 319. 72 9, 263, 764. 22 

Capital stock 1, 732, 327.10 994,812. 55 

Sales 4, 561, 082.62 3,003.389. 26 

Liquors 3,854,593.05 5,476,957. 12 

Miscellaneous 7,943, 709. 74 6, 591, 263.80 

Tobacco 122, 703.57 82,428. 18 

Coal 424, 504. 29 659, 393. 18 

Silver 26, 925. 9D 

Sugar 197, 251.35 239,077. 24 

Total miscellaneous 77, 567,562 64 ; 81,850, 773. 88 

Employment and Carriers' taxes 26,143, 458.88 ; 31,744,653.82 

Grand total 393,909,685. 50 383,320, 584.70 

'Includes, for income taxes, $262,730,729 from the Income Tax Unit and $6,994, 428 from the Accounts 

and CollectIons ;Init. The assessments of theIncome Tax Unitinclude $23,049,262made under the jeopardy 

provisions of section 279 of the Revenue Act of 1926 and section 273 of subsequent Revenue Acts. 

; Includes, for miscellaneous internal revenue, $70,261,573 from the Miscellaneous Tax Unit, $8,112,244, 

from the Accounts and Collections Unit, and $5,476,957 from the Alcohol Tax Unit. 

Includes, for employment and carriers taxes, $8,919,073 from the employment tax activities of the 

Accounts and Collections Unit and $22,826,581 from the collectors' offices. 

Refunds, etc.—Payments for the refund of taxes illegally or erroneously collected and for redemption of stamps and drawbacks are 

made from sums appropriated for such purposes. 

Number of claims paid and the amount of refunds, payments, and repayments, 

including interest, during the fiscal years 1940 and 1941 

Class of tax 

Number of 

ela ms Amount refunded or repaid Interest allowed (included 

in amount refunded) 

1940 1941 1940 1941 1940 1941 

Refund of internal-revenue 

collections: 

' 

Income taxes 132,532 117,861 $46,022,031. 85 $35 328,418. 77 $9,155, 587.93 $7,055.283.80 

Miscellaneous internalrevenue taxes: 

Bituminous coal 103 68 6, 567.92 7, 643.00 399.50 564.10 

Capital stock 2,131 2,854 381, 857.55 601, 165. 49 45, 437.40 81, 702.93 

Distilled spirits 5,902 7,681 641. 275. 23 296, 715. 93 1, 182. 43 2 332. 33 

Estate 1, 582 I, 513 5, 491, 476.11 4, 544. 329.56 880, 308.78 660. 199. 71 

Gift 421 411 3,498, 569.60 662 027.37 541, 207.97 101,896.09 

Miscellaneous tax 962 198 585,298.30 127, 554.68 60, 532 53 20,365.08 

Narcotics 127 317 205.31 757.62 6.21 

Sales 1,105 2120 2,165,637.45 2 210, 748.33 196, 916.26 206, 755.87 

Sugar 1, 637 996 1,683, 636.96 1, 749, 925.85 521 99 297.15 

Tobacco 9 365 573.94 5,753.69 27.03 10457 

Employment taxes: 

Carriers 131 127 10, 21& 61 76, 689.43 469.73 6,77&71 

Federal Insurance 

Contributions 

Act 5,665 10,868 546, 219.77 665, 703.50 52 572.13 67,197.42 

Federal Unemployment Tax 

Act 14, 972 15, 448 1, 909, 393.72 1, 954, 427.75 58, 243.52 63, 783. 17 

Agricultural adJusUnent 49,027 12 864 11, 503, 970.56 8, 125,017. 63 1, 418, 310.02 1, 254, 008.94 

Total 215, 706 173, 681 74, 496, 930.88 59, 386 878.60 12, 409, 716. 22 9, 511,226.08 

Repayments (not refund of 

taxes erroneously collected): 

Redemption of stamps: 

Distilled spirits.... 2112 1,865 54,232.68 112.949. 77 597.80 707.03 

Miscellaneous 1, 984 2,176 215, 588.17 295, 292.03 18,892. 44 21,643.09 

Narcotics 57 68 218.43 587.76 
4 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 5 

Number of claims paid and the amount of refunds, payments, and repayments, 

including interest, during the fiscal years 1940 and 1941-Continued 

Class of tax 

Number of 

claims Amount refunded or repaid Interest allowed (included 

in amount refunded) 

1940 1941 1940 1941 1949 1941 

Repayments-Continued. 

Redemption of stamps 

-Continued. 

Silver 2 MOO 

Tobacco 1.985 2.010 1,832,670.38 a 112, 618.81 

Total 6,140 6,119 2, 102. 764. 66 2 521,448. 37 819,403. 24 $22, 350.12 

Drawbacks: 

Alcohol 640 450 177, 189. 48 222,437.10 

Tobacco 17 7 3,823. 77 1,18& 74 

Total 657 457 181,013. 25 223,573.84 

Grand total 22Z 503 180, 257 70,730, 708.79 62131, 900.81 12,429.206. 46 9, 533, 573 20 

Norf.-There were also refunded from Philippine coconu oil tax collections (trust fund the amounts 

of $175.293, including $1,064 merest, covering 451 claims, during the fiscal year 1940, and OM 008, including 

$5,259 interest, covering 564 claims, during the fiscal year 194 . 

The figures in this table will not agree with those in later sections of this report, for the reason that the 

amounts shown in the later sections relate to claims disposed of by the units, whereas this table shows the 

actual payments made. 

COST OF ADMINISTRATION 

The amount of $66,414,910 was appropriated for the fiscal year 1941 

for salaries and expenses in connection with the assessment and collection of internal revenue taxes and the administration of the internal 

revenue laws. The expenditures and obligations against this appropriation were $65,289,527, leaving an unexpended balance of $1,125,-

383. The expenditures do not include amounts expended for refunding taxes illegally or erroneously collected and for redeeming stamps. 

The cost of collecting a total of $7,370,108,378 during the year was 

$0.89 per $100, compared with $1.12 per $100 for 1940. 

The amount of $2,800,000 was appropriated for the fiscal year 1941 

for salaries and administrative expenses in connection with making 

refunds authorized by Titles IV and VII of the Revenue Act of 1936. 

The amount expended and obligated from this fund amounted to 

$2,110,466, leaving an unexpended balance of $689,534. 

Personnel.-A comparative statement of the number of employees 

in the various branches of the Internal Revenue Service on June 30, 

1940, and on June 30, 1941, is given in the following table: 

Branch of service June 30, 

1940 

nine 30, 

1941 

Increase or 

decrease (-) 

Employees in the departmental service 3,993 +4,161 168 

Offices of collectors of internal revenue • 8,376 I 12, 322 3, 946 

Internal revenue agents' forces: 

Income and estate taxes 4,834 + 3,490 656 

Miscellaneous and sales taxes 61 63 2 

Offices of district supervisors 4,033 1 4,013 -70 

Miscellaneous field force (Alcohol Tax Unit) 16 13 -3 

Supervisors of accounts and collections- 46 44 -2 

Fief] force (Intelligence Unit) 296 369 73 

Field force (Assistant General Counsel's Office) 177 1228 51 

Field force (Technical Staff) 541 537 -4 

27.2311 4. WI 

Exclusive of 229 temporary employees on the internal revenue roll, 295 permanent employees on the refunding processing tax roll, and 51 permanent employees on the basi permit and trade practice roll. 

Exclusive of 597 temporary employees on the internal revenue roll. 

Exclusive of 11 temporary employees and 119 general deputy coil etors on the refunding processing tax 

roll. 

Exclusive of 5 temporary employees oo the internal revenue roll and 43 permanent employees oo the 

bask permit and trade practice roll. 

Exclusive of 5 permanent employees on the basic permit and trade practice roll. 

There were 112 employees retired on annuity during the fiscal year 

1941, 51 of whom were retired on account of disability. 

IMPORTANT LEGISLATIVE AND OTHER CHANGES AFFECTING . THE 

BUREAU DURING THE FISCAL YEAR 1941 

Public, No. 699, approved July 1, 1940, amends sections 270, 396, 

and 522 of the Bankruptcy Act, relating to the determination of the 

basis of property for Federal or State income-tax purposes, to provide 

that the basis of the debtor's property (or such property, other than 

money, as is transferred to any person required to use the debtor's 

basis) shall not be decreased to an amount less than the fair market 

value of such property as of the date of the entry of the order confirming such arrangement, and that any determination of value in a. 

proceeding under the Bankruptcy Act shall not be deemed a determination of fair market value within the meaning of such sections. 

The amendments are effective as of June 22, 1938. 

Public, No. 705, approved July 2, 1940, excludes from the requirements of section 2810(a) of the Internal Revenue Code the registration of stills or distilling apparatus set up at refineries for the refining 

of crude petroleum or the production of petroleum products and not 

used in the manufacture of distilled spirits. 

Public, No. 764, approved August 13, 1940, amends the Railroad 

Retirement Acts of 1935 and 1937, the Railway Labor Act, the 

Carriers Taxing Act of 1937, the Railroad Unemployment Insurance 

Act, and Subchapter B of Chapter 9 of the Internal Revenue Code, 

and has the general effect of excluding (retroactively to the effective 

dates of such Acts) certain coal-mining services from the railroad 

security system and including retroactively such services under the 

social security system. It also provides for adjustments in connection 

with such change in coverage. The amendments affect companies 

and individuals engaged in the mining of coal or its preparation, 

supplying (where delivery is not beyond the mine tipple), handling 

(not beyond the mine tipple), and loading (at the tipple). 

Public, No. 781, approved September 9, 1940, amends the profitlimiting provisions of section 2(b) of the Act of June 28, 1940, by 

removing from the operation of such section contracts and subcontracts entered into after September 9, 1941, for the manufacture 

of Army and Navy aircraft. The effect of this amendment is to 

increase the allowable profit under the Vinson-Trammell Act (section 

3 of the Act of March 27, 1934, 48 Stat. 505, as amended) on contracts 

for Army and Navy aircraft from 8 percent to 12 percent, and to 

retain the allowable profit of 8 percent on naval vessels. However, 

the profit-limiting provisions of the Vinson-Trammell Act were later 

suspended with respect to contracts and subcontracts entered into 

during taxable years to which the excess-profits tax is applicable 

(see section 401 of the Second Revenue Act of 1940). 

Public, No. 801, Second Revenue Act of 1940, approved October 

8, 1940, amends the Internal Revenue Code by increasing the normal 

corporate tax rate of corporations having a normal tax net income in 

excess of $25,000; imposing a graduated excess-profits tax on corporations; giving corporations the right to take a deduction for incometax purposes with respect to the amortization of properly certified 

emergency facilities, based generally on a period of 60 months; pro- 
6 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

viding rules for determining the earnings and profits of corporations, 

such amendment being retroactive to taxable years beginning after 

December 31, 1938 (Revenue Acts prior to the Code were similarly 

amended retroactively to their respective enactment dates); and 

provides for the taxation of the income of a personal service corporation to its shareholders in cases where the corporation has elected 

not to be subject to the excess-profits tax for the taxable year. The 

Act also suspends the profit-limiting provisions of the VinsonTrammell Act with respect to contracts or subcontracts for naval 

vessels or Army or Navy aircraft which are entered into in any taxable 

year to which the excess-profits tax is applicable, and suspends the 

profit-limiting provisions of the Merchant Marine Act of 1936 as to 

subcontracts entered into between corporations while the excessprofits tax is in effect, provided the contractor and subcontractor 

are not affiliated corporations. It also extends the time within which 

contributions must have been paid into an unemployment fund under 

a State law in order that a credit may be obtained against Federal 

unemployment taxes, and provides for refunds in certain cases. 

Public, No. 807, approved October 8, 1940, amends section 3493(a) 

of the Internal Revenue Code so as to permit the same person (consignor, shipper, or manufacturer) who files a claim for drawback of 

customs duty with respect to sugar exported or sugar used in the 

production of articles exported, to file claim with the Bureau for 

refund of the tax paid on the sugar under the provisions of section 

3490 of the Code; and amends section 3493(b) by extending to two 

years the 1-year period of limitation for the filing of claims for refund 

under section 3493(a). 

Public, No. 819, approved October 9, 1940, permits States to 

extend their sales, use, and income taxes to persons residing or carrying on business, or to transactions occurring, in Federal areas. In 

such Act the word "person" has the same meaning assigned to it in 

section 3797 of the Internal Revenue Code, thus including corporations, partnerships, etc. 

Public, No. 833, approved October 10, 1940, amends section 1532(e) 

of the Internal Revenue Code by providing generally that, for the 

purpose of determining the amount of employment taxes under sections 1500 and 1520 of the Code, compensation earned in the service 

of a local lodge or division of a railway labor organization employer 

shall be disregarded with respect to any calendar month if the amount 

thereof is less than $3; and contains a similar provision affecting the 

taxes under sections 2(a) and 3(a) of the Carriers Taxing Act of 1937. 

Public, No. 840, approved October 10, 1940, amends the Merchant 

Marine Act of 1936 by the addition of a new section 511, applicable to 

unsubsidized operators of vessels engaged in the domestic or foreign 

commerce of the United States or in the fisheries. Such section provides for the nonrecognition, for income and excess-profits tax purposes, of the gain realized from the sale or indemnification for the 

total loss of such vessels if the net proceeds of the sale or indemnification are placed in a construction reserve fund and used for the 

acquisition of new vessels of a specified type, speed, and size. Furthermore, amounts accumulated in a construction reserve fund shall not 

be considered as an accumulation of earnings and profits within the 

meaning of section 102 of the Internal Revenue Code. The section 

provides, however, that the basis for determining gain or loss and for 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 7 

depreciation, for the purpose of Federal income or excess-profits 

taxes, of vessels acquired from funds deposited in the construction 

reserve fund shall be reduced by the amount of unrecognized gains 

represented in such funds. 

Public, No. 860, approved October 15, 1940, amends section 3508 

of the Internal Revenue Code by extending the termination date of 

the tax on the manufacture, use, or importation of sugar from June 

30, 1941, to June 30, 1942. 

Public, No. 861, Soldiers' and Sailors' Civil Relief Act of 1940, 

approved October 17, 1940, provides that no sale of the property of 

a person in military service shall be made, or any proceeding or action 

commenced, to enforce the collection of taxes, if such person shows 

that by reason of such military service his ability to pay the tax is 

materially affected, except upon leave of court granted upon an application by the collecting officer. The court may stay such sale or 

proceeding until six months after the termination of the military 

service. 

Public Law 3, approved January 31, 1941, extends the time for 

certification of national-defense facilities and contracts for amortization purposes. 

Public Law 7, approved February 19, 1941, provides in general 

that interest upon, and gain from the sale or other disposition of, 

future obligations issued by the United States or any agency or 

instrumentality thereof; shall not be exempt from Federal taxation. 

Public Law 10, approved March 7, 1941, comprehensively amends 

the Excess Profits Tax Act of 1940 (Subchapter E of Chapter 2 of the 

Internal Revenue Code). The amendment affords relief for certain 

classes of abnormalities which were not specifically covered by the 

Excess Profits Tax Act of 1940. Relief is also provided by extending 

the scope of the unused excess-profits credit carry-over; by permitting 

a taxpayer to utilize the base period experience of a predecessor partnership or sole proprietorship; by allowing the capitalization of 

certain advertising and goodwill expenditures; by providing a new 

method of computing the excess-profits credit based on income, 

designed to assist growing corporations; by providing that securities 

held as stock in trade by dealers therein shall be treated as admissible 

assets in the computation of invested capital; by providing that insurance companies other than life or mutual may join in a consolidated 

return with noninsurance companies with which they are affiliated; 

by providing that it shall be optional for an acquiring corporation 

which was actually in existence before January 1, 1940, to have its 

excess-profits credit based upon income computed either with reference 

to the base period experience of all its qualified component corporations or solely with reference to its own base period experience; and 

by removing the provisions in existing law that a taxpayer must 

irrevocably elect to use either the excess-profits credit based on invested capital or the excess-profits credit based on income and providing instead that it shall have the benefit of whichever credit results 

in the lesser tax. The Act contains safeguards to prevent abuse of 

the relief provisions contained therein and provides that the Board 

of Tax Appeals shall have exclusive jurisdiction to review the Commissioner's determination upon issues of abnormalities. Provision is 

made for an adjustment of the excess-profits tax in certain cases in 

which the treatment accorded an item for excess-profits tax purposes 
8 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

is inconsistent with the treatment accorded such item for income tax 

purposes in a taxable year beginning prior to January 1, 1940. The 

provisions of the Act are made retroactive to taxable years beginning 

after December 31, 1939, in order that the relief afforded may be 

available for the entire period covered by the excess-profits tax. 

Public Law 18, approved March 17, 1941, amends the Internal 

Revenue Code to correct a number of errors of a clerical nature 

resulting from the codification of the basic law. 

Public Law 34, approved April 11, 1941, amends section 3527 of 

the Internal Revenue Code by extetufing the termination date of 

the taxes on the sale or disposal of bituminous coal so as to make such 

taxes apply to transactions made not later than April 25, 1943. 

Public Law 58, approved May 9, 1941, exempts from internalrevenue tax articles imported by consular officers (or consulate 

employees) of a foreign state for their personal or official use, such 

exemption being conditioned on reciprocal exemptions by the foreign 

state to corresponding officers or employees of the United States 

stationed in such foreign state. 

Changes in procedure.—Near the close of the previous fiscal year, 

Public, No. 656, Revenue Act of 1940, approved June 25, 1940, 

amended the Internal Revenue Code to provide among other things 

a change in the requirement for filing income tax returns by individuals and fiduciaries. Under this amendment, the amount of gross 

income rather than net income determines the liability for filing returns. 

Returns filed during the fiscal year 1941 were the first to be 

affected by the change. This amendment of the Code was a part of 

a program to strengthen the enforcement methods with respect to 

income tax. 

The first step in the program was to simplify the technical requirements of law with respect to the filing of returns. The change from 

a "net income concept as defined by statute" to "gross income" has 

accomplished that purpose because it has removed all doubt in the 

mind of the taxpayer in reaching a decision as to whether his income 

is above or below the amount requiring him to file a return. 

The next step in the program sought to insure the filing of returns 

by all persons receiving gross income equal to or in excess of the 

amount requiring the filing of a return. This involved a more effective use of the Information at the source provisions of the Code. 

With this in mind, there was undertaken during the fiscal year 1941, 

for the first time, an assembly in the Washington office of the information returns with the records of all taxpayers throughout the country 

for the purpose of identifying those individuals receiving gross income 

equal to or in excess of the amount requiring the filing of a return and 

for whom no returns were of record. 

In previous years, this assembly was made in Washington only 

with respect to those returns reporting net incomes of $5,000 or over, 

or returns on Form 1040 reporting income from business or profession, 

leaving the assembling of the information returns with the returns of 

the smaller taxpayers who filed on Form 1040A to be made in the 

collectors' offices. 

The undertaking of the entire task in Washington materially 

strengthens the effectiveness of the enforcement system for a number 

of reasons, among which are: (a) It facilitates frequent crosschecking between collection districts in the case of income recipients 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 9 

moving from one collection district to another; (b) it provides for a 

unification of checking procedures involving a large volume of similar 

clerical tasks, resulting in substantial economies; and (c) it•coordinates 

the timing of efforts to secure delinquent income tax returns so as to 

insure a better distribution of return blanks for the following taxable 

year and a consequent decrease in the number of individuals who fail 

to file required income tax returns. 

It is proposed to carry this program forward during the coming 

fiscal year, since it provides the most effective measure for insuring 

the filing of returns by the rapidly increasing number of persons who, 

though unacquainted with the provisions of the income tax law, are 

liable for the first time for filing returns due to a spreading of increased 

earnings and the lowering of the amount of income requiring the 

filing of returns. 

ACCOUNTS AND COLLECTIONS UNIT 

The Accounts and Collections Unit is the central administrative 

organization for the 64 internal revenue collection districts and makes 

the administrative audit of all expenditures for the Internal Revenue 

Service. The Unit also administers the employment taxes imposed 

under Chapter 9 of the Internal Revenue Code, the taxes under Subchapter A (Federal Insurance Contributions Act) being with respect 

to employment by others than carrier, Subchapter B with respect to 

employment by carriers, and Subchapter C (Federal Unemployment 

Tax Act) with respect to the tax on employers of eight or more. 

Prior to enactment of the Internal Revenue Code the provisions of 

Subchapters A, C, and B of Chapter 9, were contained in Titles VIII 

and IX of the Social Security Act and in the Carriers Taxing Act of 

1937, respectively. 

There were 28,077,237 tax returns filed in collectors' offices during 

the fiscal year 1941, an increase of 8,877,305 over the previous year. 

Of the total returns filed, 16,150,496 were income tax returns, an 

increase of 7,162,084 during the year. The increase in the number of 

returns filed may be attributed largely to the reduced exemptions 

provided by the Revenue Act of 1940. 

A total of 13,878,586,593 revenue stamps, valued at $1,455,156,314, 

was issued to collectors of internal revenue and the Postmaster General 

during the year, compared with 13,351,512,052 stamps, valued at 

$1,188,107,282, issued during 1940. 

Revenue stamps returned by collectors of internal revenue and by 

the Postmaster General, and credited to their accounts, amounted 

to $50,905,319. There were 318 applications allowed for restamping 

packages from which the original stamps had been lost, mutilated, 

or destroyed, compared with 390 applications in the preceding year. 

During the year, 40,604 income tax, 13,807 miscellaneous tax, and 

218,177 employment tax returns were investigated by field deputy 

collectors, and 10,869,458 information returns were verified. At the 

close of business June 30, 1941, there were outstanding in the 64 

collection districts, for field investigation, 4,868 income tax returns, 

compared with 3,212 as of June 30, 1940. The number of information 

returns on hand June 30, 1941, was 1,729,903, compared with 5,315,926 

as of June 30, 1940. On June 30, 1941, there were 183,594 warrants 

423348-41-2 
10 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

for distraint in the custody of the collectors' field forces for collection, 

compared with 212,701 as of June 30, 1940. 

Collectors of internal revenue, after having taken the necessary 

administrative action, transmitted to the Bureau or otherwise disposed 

of 261,955 claims, as compared with 249,007 claims in 1940, an increase 

of 12,948. The number of claims on hand in collectors' offices at the 

end of the fiscal year was 8,223, compared with 14,126 at the close of 

the previous ascii]. year. 

Field deputy collectors of internal revenue served 407,667 warrants 

for distraint, which resulted in the collection of $54,353,624. An 

average of 3,732 producing field deputy collectors made 2,220,467 

revenue-producing investigations, including the serving of warrants 

for distraint, compared with 1,622,104 revenue-producing investigations made by an average of 2,718 producing field deputy collectors 

in the preceding year. The total amount collected and reported for 

assessment by field deputy collectors was $90,285,877, compared with 

$84,566,072 in the previous year. The average number of investigations made per field deputy and the average amount of tax collected 

and reported for assessment were 595 and $24,192, respectively, as 

compared with 597 and $31,113 in 1940. 

The supervisors of accounts and collections submitted 107 reports 

covering their examination of the accounts of collectors of internal 

revenue during the year, compared with 113 reports submitted during 

the period ended June 30, 1940. Every collector's office was examined 

at least once and all but 26 of the collectors' offices were examined 

twice during the year. The internal-revenue stamps in the office 

of the United States internal-revenue stamp agent for the Philippine 

Islands were verified twice by the auditor general for the Philippines 

during the year. Seven new collectors and three acting collectors 

were installed during the fiscal year. Seven collectors' offices were 

transferred under renewal bonds and one under confirmation bond. 

In administering the personnel of the several collection districts, 

the provisions of the Classification Act of 1923 and amendatory acts, 

and decisions of the Comptroller General relating thereto, were closely 

followed. The policy has been continued of making such appointments 

as have been authorized in the field collection service at the minimum 

salary rate of the appropriate grade, and all applications for positions 

have been carefully scrutinized and investigated with a view to maintaining the usual high standard of requirement for employment. 

The Disbursement Accounting Division administratively examined 

and recorded 1,540 monthly accounts of collectors of internal revenue, 

internal revenue agents in charge, heads of Staff divisions, district 

supervisors, including the Philippine branch of the district of Maryland, and the internal revenue salary payments made by the special 

disbursing agent, San Juan, P. R., comprising a total of 132,020 

vouchers, in addition to which 6,990 expense vouchers of employees 

and 17,954 vouchers covering passenger and freight transportation 

and miscellaneous expenses were audited and passed to the chief 

disbursing officer, Treasury Department, or General Accounting 

Office for payment 

Assessments of employment taxes.—During the year, 5,545 assessment lists, an increase of 66 over the previous year, consisting of 8,666,-

409 items totaling $846,392,546, were approved by the Commissioner. 

These lists included original and additional assessments of taxes 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 11 

under Chapter 9 of the Internal Revenue Code, formerly Titles VIII 

and IX of the Social Security Act and Carriers Taxing Act of 1937. 

Included in this total were 1,605 lists prepared by the collectors' 

offices and adjusted by the Bureau, consisting of 8,607,625 items 

totaling $837,473,473, and 3,940 lists prepared in the Bureau, consisting of 58,784 items totaling $8,919,073, as further analyzed in 

the fallowing tabulations: 

Analysis of employment tax assessments appearing on collectors' lists 

Sources Items Tax and penalty Interest Total 

Federal Insurance Contributions Act 8,152, 507 $615, 200, 427.24 $759, 754.78 $615, 960, 182. 02 

Federal Unemployment Tax Act 423, 948 94, 712, 257.28 356, 076.26 95, 068, 333. 54 

Carriers taxes 

Total 

31, 170 126, 375, 807.98 69, 149. 67 126, 444, 957. 65 

8, 607, 625 836, 288, 492.60 1,184, 980.71 837, 473, 473. 21 

Analysis of employme tax assessments appearing on Commissioner's lists 

Sources Items Tax Penalty Interest Total 

Federal Insurance Contributions Act_ _ 20, 524 $1, 256, 779.97 $131, 438. 36 $122, 563.34 $1, 510, 781.67 

Federal Unemployment Tax Act 38, 212 6, 381, 479.68 425, 542.78 . 593, 844.91 7, 400, 867.27 

Carriers taxes 

Total 

98 6,657.47 33. 32 733.09 7, 423. 88 

58, 784 7, 644,917.02 557, 014. 46 717, 141. 34 8, 919, 072.82 

Taxes under the Federal Insurance Contributions Act.—Collections 

of taxes imposed under the Federal Insurance Contributions Act 

amounted to $687,327,551 for the year, as compared with $605,350,176 

for 1940, an increase of $81,977,375. These amounts include both 

the employees' tax and the employers' tax, each of which was imposed 

at the rate of 1 percent of taxable wages paid. Returns under the 

act are required on a quarterly basis, 8,684,639 being filed during the 

fiscal year, as compared with 7,868,402 filed in the preceding year. 

The complete and final audit of returns under the act is conducted 

in the offices of collectors of internal revenue. 

The following table sets forth information relative to claims disposed of under the Federal Insurance Contributions Act and/or Title 

VIII of the Social Security Act: 

Claims under the Federal Insurance Contributions Act and/or Title VIII of the 

Social Security Act, except special refunds under section 1401(d) of the former act, 

received and disposed of during the fiscal year 1941 

Claims: Number 

Pending at beginning of year 2, 644 

Filed during year (new claims) 18, 134 

Received from other sources 286 

Total to be disposed of 21, 064 

Allowed in full or in part 12, 759 

Rejected 3, 190 

Canceled 70 

Total disposed of 16, 019 

Pending at end of year 5, 045 

Certificates of allowance issued when no claims were filed 4, 787 
12 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Claims under the Federal Insurance Contributions Act and/or Title VIII of the 

Social Security Act, etc.—Continued 

Overassessments settled by— Ammar 

Abatement $850, 480. 45 

Credit 14, 801. 42 

Refund 481, 658. 17 

Total 1, 346, 940. 04 

Interest 58, 450. 28 

Grand total • 1, 405, 390. 32 

NOM—The amount involved in claims filed during the year 1941 was $3,000,404. Included in the allowed 

claims shown in the above tabulation were 7,001 collectors' claims for abatement, of which 347 were multipleItem claims involving 9,204 Items. There were also allowed 524 collectors' claims recommending refunds of 

$3,839, plus interest of $440. The amount Involved in the claims rejected during the year totaled $855,742. 

Special refunds.—Effective with the calendar year 1940, the Social 

Security Act Amendments of 1939 added a new provision to the 

Federal Insurance Contributions Act, section 1401(d), whereby an 

employee, performing services for more than one employer during a 

calendar year, may obtain a refund of the amount of employee's tax 

deducted from his wages which is in excess of the tax on the first 

$3,000 of such wages. To obtain such a refund the employee must 

file a claim after the calendar year in which the services were performed; therefore, the first year during which such claims could be 

properly filed was the calendar year 1941. 

Claims for special refund, for the calendar year 1940, under section 1401(d) of the 

Federal Insurance Contributions Act received and disposed of during the fiscal 

year 1941 

Claims: Number 

Filed during year (new claims) 16, 960 

Received from other sources 3 

Total to be disposed of 16, 963 

Allowed in full or in part 8, 389 

Rejected 30 

Canceled 2 

Total disposed of 8, 421 

Pending at end of year 8, 542 

Nora.—The amount involved In claims filed during the year 1941 was $392,283. In connection with the 

claims allowed, $191,834 was recommended for refund, and the amount involved In the claims rejected was 

$705. 

Offers in compromise.—On July 1, 1940, there were on hand 129 

offers in compromise, aggregating $26,827, which had been submitted 

in settlement of an aggregate liability of $71,464, incurred under Title 

VIII of the Social Security Act and/or the Federal Insurance Contributions Act. There were 564 offers received, in the total amount of 

$78,090, involving an aggregate liability of $281,040; 320 offers in the 

amount of $35,463 were accepted in settlement of liability of $87,253; 

120 offers, amounting to $18,091 and involving liability of $92,929, 

were rejected, leaving on hand at the close of the year 253 offers 

totaling $51,363 and involving liability of $172,322. 

Coordination with the Social Security Board.—The Bureau and the 

Social Security Board continued to coordinate their decisions on questions involving provisions common to Title II of the Social Security 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 13 

Act and the Federal Insurance Contributions Act. At the beginning 

of the fiscal year, 101 inquiries from the Board relating to such provisions were pending before the Bureau. During the fiscal year, 1,877 

similar inquiries were received from the Board, and 1,814 were disposed of, leaving 164 pending at the close of the fiscal year. Copies of 

663 opinions of the General Counsel of the Federal Security Agency 

were furnished to the Bureau, and copies of 127 opinions of, or rulings 

approved by, the Chief Counsel for the Bureau were transmitted to 

the Federal Security Agency. 

Tax under the Federal Unemployment Tax Act.—The tax under the 

Federal Unemployment Tax Act is imposed on employers of eight or 

more. The rate is 3 percent on taxable wages paid during 1940 with 

respect to employment. Collections amounted to $100,657,721, as 

compared with $106,123,156 for the fiscal year 1940, a decrease of 

$5,465,435. There were. 368,639 returns filed during the fiscal year, 

as compared with 367,670 filed during the preceding fiscal year. 

The return for each calendar year is due on January 31 following 

the close of the year unless an extension of time for filing is granted. 

Against the tax imposed by the act, a taxpayer is entitled to a 

credit (not exceeding 90 percent of the tax) for contributions paid to 

unemployment funds under a State law approved and certified by the 

Social Security Board to the Secretary of the Treasury. With certain exceptions, the contributions to be allowable as credit must be 

paid into the State funds on or before the date the Federal return is 

required to be filed. The Second Revenue Act of 1940, enacted 

October 8, 1940, extended the time within which contributions could 

be paid into a State fund in order to be allowable as credit against 

the Federal tax. With respect to the calendar years 1936 to 1938, 

inclusive, section 701 of the Second Revenue Act of 1940 provides 

that contributions paid before the sixtieth day after enactment could 

be allowed as credit. For the year 1939 it is provided that contributions may be credited against the Federal tax, m addition to contributions paid on or before the last day the Federal return is required to 

be filed, if paid after such last day but before the sixtieth day after 

enactment. However, with respect to contributions for the year 1939 

paid after the last day the Federal return is required to be filed but 

before such sixtieth day, the taxpayei may only credit an amount 

which does not exceed 90 percent of the amount which would have 

been allowable as credit on account of such contributions had they 

been paid on or before such last day. 

For the calendar year 1940 unemployment compensation laws of the 

48 States, the District of Columbia, and the Territories of Alaska and 

Hawaii were approved and certified to the Secretary of the Treasury 

by the Board. 

For the purpose of enabling the Bureau to determine whether the 

credit claimed by a taxpayer for contributions to a State fund is correct, each State furnishes the Bureau with a statement for each employer, showing the amount of contributions paid by the employer on 

or before the date the Federal return is required to be filed and the 

amounts and dates of payments made thereafter. During the fiscal 

year 1941 there were received from the States 4,954 such statements 

for the year 1936, 15,972 for 1937, 28,675 for 1938, 165,200 for 1939, 

and 573,737 for 1940. 
14 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 15 

In addition to the credit against the Federal tax for contributions 

actually paid into State funds, the taxpayer may be entitled to an 

additional credit under section 1601(b) of the act. This additional 

credit is allowable to an employer if, by reason of having stabilized 

the employment of his employees in a State or for some other reason, 

he is granted an "experience rate" under the laws of the State and is 

thereby permitted to pay contributions at a lower rate than that paid 

generally by other employers. Certain conditions with respect to a 

State law are imposed by the act that must be met before an employer 

is entitled to the additional credit. For the calendar year 1938 and 

1939 the State of Wisconsin was the only State having a law that 

complied with the conditions imposed by the act. For the year 1938 

there were 110 employers with employment in that State who were 

granted an "experience rate," and for the year 1939, 2,804. For the 

year 1940, four States granted "experience rates," namely, Indiana, 

Nebraska, South Dakota, and Wisconsin. There were approximately 

5,500 employers granted "experience rates" by the four States for 

the year 1940. 

Field investigations conducted by the States in connection with the 

administration of State unemployment laws result in numerous correction statements being submitted to the Bureau, showing changes 

in the amounts standing to the employers' credit in the State funds. 

This causes a considerable number of cases to be reopened for audit 

by the Bureau. 

Number of Federal unemployment tax returns (annual) received, reopened, and closed 

by the Bureau during he fiscal year 1941 and the number pending at the beginning 

and close of the year, by tax years 

Tax year 

On hand 

July 1, 

1940 

Received 

during 

year 

Reopened 

during 

year 

Total 

Disposed 

of during 

year 

• 

On hand 

June 30, 

1941 

1936 1, 581 3,086 6,058 10, 705 10,132 573 

1937 12,269 6,551 12,419 31,239 28,381 2,858 

1938 24, 643 9, 554 17,626 51, 823 44,171 7,652 

1939 326,757 17,191 12,864 358,612 330,914 25,698 

1940 None 332,257 None 332,257 None 332,267 

Total 365,230 368,039 48,767 782,636 413,698 369,038 

The Bureau submitted 468 returns to the field for investigation 

during the fiscal year. Independent of these cases, the field force 

submitted reports, prepared in connection with income tax investigations, for the years 1936, 1937, 1938, and 1939, which are included in 

the following table: 

Revenue agents' reports received and closed by the Bureau during the fiscal year 

1941 and the number pending at the beginning and close of the year, by tax years 

Tax year 

On hand 

July 1, 

1940 

Received 

riming 

year 

Total 

Disposed 

of during 

year 

On hand 

June 30, 

1941 

1936 70 680 750 721 

anE 

1937 397 1, 226 1, 623 1, 468 

1938 840 2, 957 3, 797 3, 389 

1939 None 4, 606 4, 606 3,960 

Total 1, 307 9, 469 10, 776 9, 538 1, 238 

Of the total of 9,538 revenue agents' reports disposed of during the 

year, 1,493 were closed ,showing no change in tax liability, 7,119 

showing deficiencies in tax amounting to $1,428,413, and 926 showing 

overassessments of $344,222. 

The following table sets forth information relative to claims adjusted 

and certificates of overassessment or of allowance issued under the 

Federal Unemployment Tax Act and/or Title IX of the Social Security 

Act: 

Claims under the Federal Unemployment Tax Act and/or Title IX of the Social 

Security Act received and disposed of and certificates of overassessment issued 

during the fiscal year 1941 

Claims: Number 

Pending at beginning of year 8, 618 

Filed during year (new claims) 25, 367 

Received from other sources 57 

Total to be disposed of 34, 042 

Allowed in full or in part 19, 724 

Rejected 4, 630 

Canceled 119 

Total disposed of 24, 473 

Pending at end of year 9, 569 

Certificates of overassessment and certificates of allowance 

issued when no claims were filed 8, 791 

Overassessmente settled by: Amount 

Abatement $3, 451, 776. 43 

Credit 93, 234. 27 

Refund 1, 982, 796. 42 

Total 5, 527, 807. 12 

Interest 67, 351. 09 

Grand total 5, 595, 158. 21 

Nora.-The amount involved in Maims Hied during the year 1941 was $5,641,383. Included in the allowed 

claims shown in the above tabulation were 4,015 collectors' claims for abatement, of which 55 were multipleitem claims involving 976 items. There were also allowed 5,077 collectors' claims recommending refunds 

of $112,651, plus interest of $3,881. The amount involved in the claims rejected during the year totaled 

$841,407. 

Offers in compromise.-On July 1, 1940, there were on hand 102 

offers in compromise, aggregating $16,508, which had been submitted 

in settlement of an aggregate liability of $105,483, incurred under 

Title IX of the Social Security Act and/or the Federal Unemployment 

Tax Act. There were 466 offers received, in the total amount of 

$54,644 involving an aggregate liability of $434,067; 160 offers in 

the amount of $19,714 were accepted in settlement of liability of 

$108,304; 201 offers, amounting to $22,144 and involving liability 

of $190,336, were rejected, leaving on hand at the close of the year 

207 offers totaling $29,294 and involving liability of $240,910. 

Carriers taxes (Chapter 9, Subchapter B, Internal Revenue Code).-

Collections of employers' tax and employees' tax under Chapter 9, 

Subchapter B, of the Internal Revenue Code (employment by carriers) 

aggregated $137,850,549, as compared with $122,037,661 for the 

previous year, an increase of $15,812,888. Each tax was imposed at 

the rate of 3 percent of the taxable compensation. Collections of 

employee representatives' tax, which was imposed at the rate of 6 
Total 

Interest 

 175, 469. 72 

6, 779. 71 

16 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

percent of the taxable compensation, amounted to $20,637, as compared with $9,982 for the previous year, an increase of $10,655. 

Returns are required on a quarterly basis, 30,994 being filed by employers and 1,540 by employee representatives, a decrease of 921 

and 158, respectively, from the previous year. The complete and 

final audit of these returns is conducted in the offices of collectors 

of internal revenue. 

The following table sets forth information relative to claims disposed of under Chapter 9, Subchapter B, Internal Revenue Code, 

and/or the Carriers Taxing Act of 1937: 

Claims under Chapter 9, Subchapter B, Internal Revenue Code, and/or the Carriers 

Taxing Act of 1937 received and disposed of during the fiscal year 1941 

Claims: 

Pending at beginning of year 

Filed during year (new claims) 

Received from other sources 

Total to be disposed of 342 

Allowed in full or in part 203 

Rejected 74 

Canceled 5 

Total disposed of 282 

Pending at end of year 60 

Certificates of allowance issued when no claims were filed 4 

Overassessments settled by: Amount 

Abatement $4, 486. 90 

Credit 100, 440. 14 

Refund 70, 542. 68 

Grand total 182, 249. 43 

Nom-The amount involved in claims filed during the year 1941 was $661,191. Included in the allowed 

claims shown in the above tabulation were 43 collectors' claims for abatement. There were also allowed 

two collectors' claims recommending refunds of $9.44, plus interest of $0.10. The amount Involved in the 

claims rejected during the year totaled $137,044. 

Coordination with Railroad Retirement Board.-The Bureau and the 

Railroad Retirement Board continued to coordinate their decisions on 

questions involving provisions common to the Railroad Retirement 

Act of 1937, the Railroad Unemployment Insurance Act, and Subchapters B and C of Chapter 9 of the Internal Revenue Code, as 

amended. At the beginning of the fiscal year, three inquiries from 

the Board relating to such provisions were pending before the Bureau. 

During the fiscal year, 21 similar inquiries were received, and 23 were 

disposed of, leaving 1 pending at the close of the year. Copies of 185 

opinions of the General Counsel of the Railroad Retirement Board 

were furnished to the Bureau and copies of 9 opinions of, or rulings 

approved by, the Chief Counsel for the Bureau were transmitted to 

the Board. 

INCOME TAX UNIT 

General functions.-The Income Tax Unit is charged with the 

administration of the internal revenue laws with reference to taxes on 

income, excess profits of corporations, and refunds of certain procREPORT OF COMMISSIONER OF INTERNAL REVENUE 17 

essing taxes, and the laws limiting profits on certain Army and Navy 

contracts. The administration includes the preparation of regulations and interpretative and procedural rulings and instructions 

regarding such laws, and the examination and adjustment of returns 

filed thereunder, through office audits and field investigations, for the 

purpose of determining the correct tax liability as required by law. 

INCOME AND EXCESS-PROFITS TAXES 

Collections.-During the fiscal year 1941, collections of income and 

excess-profits taxes amounted to $3,462,028,369. This compares 

with $2,121,073,129 collected in the fiscal year 1940, an increase of 

$1,340,955,240, or 63.2 percent. The comparison in detail is as 

follows: 

Collections during the fiscal years 1940 and 1941 

Source 

Erna year 

Increase or 

decrease (-) 

1940 1941 

Corporation income tax: I 

Current collections 2 

Back collections 2 

Total I 

Declared value excess-profits tax: ; 

Current collections 2 

Back collections 

Total 

Excess-profits tax: 

Current collections ' 

Back collections ' 

Total 

Individual income tax: 

Current collections 1 

Back collections ' 

Total 

Total income and excess-profits tax 

Unjust enrichment taxes 

Grand total 

6958, 260,442 

162,321,108 

61,649,027,052 

202, 960,939 

$690, 766, 610 

40, 639, 831 

1, 120, 581, 550 1, 851, 987, 991 731,406,441 

15,388, 825 

3,085, 378 

20, 280,368 

7, 795, 916 

4, 891, 543 

4, 710, 538 

18,474, 203 28,076, 284 9,602, 081 

164,308,967 164,308,967 

164, 308,967 164, 308, 967 

891, 764,121 

90,263,255 

1, 314,265, 807 

103, 389, 320 

422, 511, 686 

13,126,065 

982, 017, 376 1, 417,655, 127 435,637, 751 

2, L31,073,129 

8,536, 178 

3, 462,028, 369 

9,095, 562 

1, 340,955, 240 

559, 384 

2, 129, 609,307 3,471, 123, 931 1,341, 514, 624 

I The corporation income tax collections for the fiscal year 1940 include $2,931, and for the fiscal year 1941 

include $2,448, paid by the Alaska Railways under sections 1303 and 1301 of the Internal Revenue Code. 

In addition, these collections also include tax withheld at source under sections 143 and 144 of the Internal 

Revenue Code and reported by withholding agents, although much of this tax was withheld from taxpayers 

other than corporations. The exact amount of these collections cannot be stated as it has not been tabulated 

separately. 

2 The term "current" collections means in general taxes paid within 12 months after the close of the taxable year for which the return was filed. The term "back" collections means in general taxes paid more than 

12 months after the close of the taxable year for which the return was filed. 

Includes collections of excess-profits taxes (Vinson Act) of $1,427,067 for the fiscal year 1940 and $2,156,718 

for the fiscal year 1941. 

Returns filed.-The number of all types of income and excess-profits 

tax returns filed during the past fiscal year on which tax was reported 

and assessed was 7,867,319, compared with 4,324,275 returns filed in 

the fiscal year 1940, 1 an increase of 3,543,044, or 81.9 percent. In 

addition, 8,283,177 taxpayers filed returns during the fiscal year 1941 

showing no income subject to tax, compared with 4,664,137 such 

returns for the preceding fiscal year. The total number of income 

tax returns filed by individuals was 14,877,544, which is nearly double 

I Including in each fiscat year the delinquent returns filed during that year relating to prior years. 

Number 

44 

297 1 
Type of return 

Individuals: 

Citizens and resident 

aliens I 

Nonresident aliens 

Fiduciaries 

Partnerships 

Withholding agents 

Corporations: 

Income tax 

Personal holding company 

surtax 

Excess-profits tax 

All other 

Total 

1940 

590, 935 

Fiscal year 

1941 

Taxable 

3,970, 543 

73, 783 

63,909 

14,928 

200,715 

397 

4, 329, 275 

Nontaxabi 

4, 669,117 

Nontaxable 

7,312,056 

8, 283,177 

14,832,403 

95, 141 

258,206 

368,690 

14,042 

535, 525 

5,420 

91,054 

2,015 

16,150, 496 

14,042 

207,183 

531 

11,845 

8,988,412 7, 867, 319 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 19 18 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

the number received in the preceding year and is by far the largest 

number of income tax returns filed for any one year in the history of 

Federal income taxation. 

Three factors accounted, in a large measure, for the increased 

number of individual income tax returns: (1) the reduction of the 

personal exemption; (2) the use of gross income rather than net income 

to determine liability for filing; and (3) increased income payments to 

individuals and more widespread employment. Contributory factors, 

not measurable but of undoubted significance, are: (1) the public 

response to the national emergency and willingness to support the 

defense program by paying taxes; and (2) more widespread publicity 

as to the income tax changes affecting smaller taxpayers. Details as 

to the number of returns filed are as follows: 

I Includes 2,465,118 taxable and 2,798,048 nontaxable Forms 1040-A filed during the fiscal year 1940 and 

5,298,932 taxable and 5,226,164 nontaxable Forms 1040-A filed during the fiscal year 1991. 

Reported with the taxable returns. 

Examination of income and excess-profits tax returns upon receipt by 

the Income Tax Unit.-The returns described in the foregoing table, 

with certain exceptions, are forwarded by the collectors to the Income 

Tax Unit at Washington.' 

As of June 30, 1941, the work to be done by the Income Tax Unit 

had been completed on substantially all the returns filed by taxpayers 

within the fiscal year which had been transmitted to the Washington 

office by the collectors, except with respect to those not accepted as 

filed and certain of the nontaxable individual returns. Of 2,912,344 

returns of individuals, taxable fiduciaries, and corporations examined 

to June 30, 789,057 were not accepted as filed. The returns not 

accepted as filed are transmitted to the field offices of the Income Tax 

Unit for further consideration. In the main, this represents the work 

load of the field offices for the fiscal year 1942. 

The work load is appreciably heavier for 1942 than for the fiscal year 

1941; first, because there is a larger number of higher bracket returns 

which generally require more time for investigation on account of the 

I Returns on Form 1040-A, individual income tax returns for net incomes of not more than $5,000 derived 

chiefly from salaries, wages, dividends, Interest, and annuities, and Form 1040-C, individual income tax 

returns of departing aliens, are audited by the collectors of Internal revenue and not by the Income Tax 

Unit. Nontaxable fiduciary returns, Form 1041, and partnership returns, Form 1065, are retained in the 

offices of the collectors for examination by representatives of the field offices of the Income Tax Unit. 

larger number of transactions, and, second, because of the levying of 

an excess-profits tax. 

Prior to shipment of the returns to the field offices, various information at the source forms and other documents bearing upon the audit 

are associated with them for use in the investigative work. The 

number of information at the source forms filed during the fiscal year 

showing income payments was approximately 25,347,000. 

Investigation of tax returns by the field offices.-The number of 

income tax returns, including partnerships and fiduciaries, investigated during the fiscal year 1941 was 470,876, as compared with 

424,072 for the previous fiscal year, an increase of 11.0 percent. 

These figures include all returns for which the examiner's report has 

been submitted, whether or not the case has been finally disposed of 

by the reviewing officer. 

Estate and gift tax returns investigated by field offices during the 

fiscal year numbered 17,355, as compared with 17,881 for the previous 

fiscal year, a decrease of 2.9 percent. 

The total number of individual, taxable fiduciary, and corporation 

income tax returns disposed of by the field offices during the fiscal 

year 1941, with and without investigation, was 924,358. In addition, 

the field offices dispos&l of 395,591 partnership and nontaxable 

fiduciary income tax returns and 20,579 estate and gift tax returns. 

The following table shows how the disposals for the fiscal year 1941 

compare with disposals during the preceding year: 

Number of tax returns disposed of by field offices during the fiscal years 1940 and 1941 

Type of return 

Fiscal year 

1940 1991 

INCOME TAX 

Corporations, individuals, and taxable fiduciaries: 

Na change 588,631 6313,114 

Deficiency adjustments 211, 629 210,806 

Overassesement adjustments 58,061 57,438 

Total 858, 321 924, 358 

Partnership and nontaxable fiduciaries 550, 892 395, 591 

Total income tax returns 1,409,163 1,319,949 

ESTATE AND GIFT TAX 

No change 9,893 8,873 

Deficiency adjustments 11, 228 10, 708 

Overassessment adjustments 848 998 

Total estate and gift tax returns 21,969 20, 579 

Efforts made by agents to expedite the closing of examined cases 

met with greater success in the fiscal year 1941 than in 1940, as 

evidenced by the fact that during 1941 the examiners' proposals were 

concurred in by the taxpayers without formal protest in a higher 

percentage of the cases than in the previous year. (See discussion of 

stage at which additional tax was assessed appearing on page 20.) 

Petitions to the Board of Tax Appeals filed during 1941 involved 

5,891 returns and proposed tax deficiencies of $117,927,968. This 

compares with 5,386 returns and tax deficiencies of $69,970,847 for 

the fiscal year 1940. For a statement showing the number of returns, 
20 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

proposed tax, interest, and penalties in petitioned cases, classified by 

tax years, see page 111. 

Revenue results of investigation of income and declared value excessprofits tax returns.-The total amount of additional assessments made 

during the fiscal year 1941 was $262,730,729. Excluding jeopardy 

and duplicate items, the amount was $236,815,872, or a decrease of 2.5 

percent from the preceding year. In relation to the total technical 

personnel assigned to the field offices, the amount of additional tax, 

interest, and penalty assessed in 1941 represented an average of 

$69,325 for each agent, as against $72,214 for 1940. An analysis of 

the assessments for the fiscal year 1941 as compared with the fiscal 

year 1940 follows: 

Additional income tax assessments made during the fiscal years 1941 and 1940, by 

nature of assessment 

Nature of assessment Number of 

returns 

Additional 

tax Interest Penalty Total 

FISCAL YEAR 1941 

Regular 234, 786 $198, 056,808 $35, 754, 408 $3,004, 656 $236,815,872 

Jeopardy 1,355 17,011, 127 3,595,071 2,439,680 23,045,878 

Duplicate 1 469 2,177,606 667,210 24, 163 2, 868, 979 

Total 236,610 217,245, 541 40,016,689 5, 468, 499 262, 730,729 

FISCAL YEAR 1940 1 

Regular 212,797 200,342,371 39,631,242 2,882,897 242, 856, 510 

Jeopardy I 1, 568 19, 676, 342 4,307,076 4,800, 345 28,783,763 

Duplicates 542 11,132,989 1, 570, 829 98,632 12,802,460 

Total 214,907 231, 151, 712 45, 509,147 7,781,874 284,442,733 

Duplicate assessments made under the Jeopardy provisions are included with the Jeopardy assessments. 

Stage at which additional tax was assessed.-Further progress was 

made in settling cases of proposed additional tax liability by agreements with taxpayers without issuing formal notices of deficiency, 

which are otherwise required by law as a basis for assessment and 

from which taxpayers may appeal to the Board of Tax Appeals. 

Of the total number of 235,255 returns on which regular additional 

assessments (including duplicate-regular) were made, 221,800 additional assessments, or 94.3 percent, were made by agreement with the 

taxpayers without the necessity of a statutory notice. Of the total 

regular additional tax assessed (including duplicate-regular), aggregating $200,234,414, the amount assessed by agreement was $156,215,263, 

or 78.0 percent. 

There follows a table showing, by stage at which additional assessment was made, the number and amount of additional assessments 

made during the fiscal years 1940 and 1941: 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 21 

Number and amount of additional income tax assessments made by the Income Tax 

Unit during the fiscal years 1941 and 1940, by stage at which assessment was 

made 

Stage at which additional 

assessment was made 

Returns Additional tax 

Interest Penalty Total 

Number 

Per 

cent of 

total 

Amount 

Percent of 

total 

FISCAL YEAR 1941 

On agreements executed prior 

to mailing of 90-day letter__ 221, 800 94.3 $156,215,263 78.0 taa, 479, 384 $1,710,899 $181,405,546 

Default or agreement after 

issuance of 90-day letter, ._, 9,305 3.9 15,439, 313 7.7 2, 838, 208 835, 678 19, 113, 199 

In appealed cases, after trial 

on the merits and decision 

by the Board of Tax Appeals, or upon stipulation 

before the Board of cases 

settled by Technical Staff 

and/or Chief Counsel 4,150 1.8 28, 579, 838 14.3 10, 104,026 482, 242 39, 166,106 

Total 235,255 100.0 200,234,414 100.0 36,421, 618 3,028,819 239,684,851 

Jeopardy provisions of the 

Code 1,355 17,011, 127 3, 595,071 2,439, 680 23,045, 878 

Grand total 236,610 217,245,541 40, 016, 689 5;468, 499 262,730,729 

. 

. 

FISCAL YEAR 1940 

On agreements executed prior 

to mailing of 90-day letter__ 199, 044 93.3 165, 810, 823 78.4 25, 386, 376 1,259,158 192,456, 357 

Default or agreement after 

issuance of 90-day letter. __ 10,522 4.9 12,714, 788 6.0 2, 500, 731 821,881 16, 037,400 

In appealed cases, after trial 

on the merits and decision 

by the Board of Tax Appeals, or upon stipulation 

before the Board of cases 

settled by Technical Staff 

and/or Chief Counsel 3, 773 1.8 32, 949, 759 15. 6 13, 314, 964 900,490 47,165, 213 

Total 213,339 100.0 211,475,370 100.0 41, 202, 071 2,981, 529 265, 658, 970 

Jeopardy provisions of the 

Code 1, 568 19, 676, 342 4, 307, 076 4, 800, 345 28, 783, 763 

Grand total 214,907 231, 151, 712 4b, 509, 147 7, 781,874 284, 442, 733 

For a distribution of the additional assessments made during the 

fiscal year 1941 by tax years for each stage at which assessment was 

made, see pages 108-111. 

Refunds, abatements, and credits.-The number of income tax cases 

which involved refunds or credits of tax or interest to taxpayers or 

abatement of tax audited and closed by the Income Tax Unit during 

the fiscal year 1941 was 73,627, by comparison with 82,078 1such 

cases closed during the fiscal year 1940, a decrease of 8,451, or 10.3 

percent. Of the total of 73,627 overassessments for 1941, 39,730 were 

made to taxpayers without the necessity for filing claims. This compares with 38,771 in the previous year. 

Of the overassessments settled by the Income Tax Unit in 1941, 

57,511 represented refunds or credits of tax or interest involving 

$50,438,931, by comparison with 71,648 involving $55,810,102 in 1940. 

The amount involved in overassessments of all types for 1941 represented by refunds, credits, interest, and abatements for income tax 

cases audited in the collectors' offices as well as by the Income Tax 

Unit was $113,600,916, as compared with $185,936,641 the previous 

year. 

1Revised. 
There follows a table showing a comparison of claims and certificates 

of overassessment issued for the fiscal years 1940 and 1941 by the 

Income Tax Unit: 

Number of certificates of overassessment issued and claims disposed of during the 

fiscal years 1940 and 1941 

Revised. 

There were also allowed 21,342 collectors' claims, of which 9,270 

recommended abatements or credits and 12,072 recommended refunds. 

These claims were largely multiple-item claims, i. e., claims for refund 

to numbers of taxpayers, and involved 20,440 items for abatement or 

credit and 65,282 items for refund. 

There follows a table showing the amount involved in tax overassessments scheduled during the years 1940 and 1941 resulting from 

audit of income tax returns, including cases settled by the collector's 

officers as well as the,Income Tax Unit: 

Amounts of overassessment, by method of settlement, and interest allowed on all 

income tax cases closed during the fiscal years 1940 and 1941 

Fiscal year 

1940 1941 

Overasseasments settled byAbatement: 

Regular $98, 784, 513 $27, 074, 085 

Duplicate 29, 527, 956 33, 826, 883 

Credit 11, 711, 124 14, 241, 700 

Refund 36, 824,426 31, 425, 457 

Total 176,828,018 108, 568, 126 

Interest 9, 108. sza 7, 032, 791 

Grand total 183, 936,641 113, 6W, 916 

Nora.-The amount involved in claims filed during the year 1941 was $120,817,115, compared with 

$166,272,676 the preceding year. Of the claims disposed of during the year, the amount rejected totaled 

$138,842,462, compared with $143,847,884 the preceding year. 

Inventory of returns on hand in the field otfiees as of June 30, 1941.-

There was a net improvement in the position of the field offices as 

of the close of the fiscal year 1941 as compared with 1940. The 

Allowances: 

Certificates of overassessment issued when no claims had been filed 

Claim allowed in full or in part 

Total allowances 

Status of claims' 

Pending at beginning of year 

Filed during year (new claims) 

Total to be disposed of 

Allowed in full or in part 

Rejected 

Total disposed of 

Pending at end of year 

33, 897 

14,020 

22 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 23 

number of open income tax returns on hand in the field offices as of 

June 30, 1941, was 373,889, compared with 406,616 for June 30, 1940. 

The net reduction as between the ends of the two fiscal years was 32,727, 

or 8.0 percent. The net reduction in prior-year work was 850 in 

number of returns, or 1.5 percent. The percent of open prior-year 

work to open current-year work at the end of 1941 was 17.1, as compared with 15.8 percent for 1940. 

number of income tax returns on hand in the field offices for investigation and in 

process of settlement, by tax years, as of June 30, 1940 and 1941 

Tax years 

Number of income 

tax returns on hand 

as of June 30- Tax years 

Number of income 

fax returns on hand 

as of June 30- 

1940 1941 1940 1941 

1934 2, 885 1,459 

1935___ 5.620 2,686 

1936 16,041 5,998 

1937 26,432 12,938 

1938 110,789 28,731 

1939 240.010 115, 192 

1§1 

1940 388 203,770 

1941 348 

Total 406,616 373,889 

Total prior year returns 55, 429 54, 779 

Total current year returns._ _ _ 351,187 319, 310 

The returns on hand in the field offices as of June 30, 1940 and 1941, 

are classified according to pending status in the table which follows: 

Number of income tax returns on hand in field offices for investigation and in process 

of settlement, by pending status as of June 30, 1940 and 1941 

Pending status 

Number of income tax returns on hand as of June 

30- 

1940 1941 

Returns on which agents' reports have not been completed: 

Awaiting classification 103, 506 71,016 

In process of verification 220, 991 221,187 

In review or typing 43,585 49, 946 

Totel 368,082 341, 189 

Returns on which agents' reports have been completed: 

In 30-day file 9,109 8, 400 

Awaiting action after protest or preliminary notice default 25,316 99, 905 

In 90-day file 4, 109 3,395 

Total 38, 534 32, 700 

Grand total 406, 616 373,889 

Included above under "returns on which agents reports have been 

completed" as of June 30, 1941, are 27,031 returns, involving adjustments not agreed to by the taxpayers, as compared with 31,507 returns 

in such status at the close of the previous year. 
24 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

MISCELLANEOUS TAX UNIT 

The Miscellaneous Tax Unit is concerned with the administration 

of all internal revenue taxes except the income and excess-profits taxes, 

the taxes applicable to alcoholic beverages, and those relating to employment. Detailed statements concerning the particular taxes administered in each of the five divisions of the Miscellaneous Tax Unit 

are set forth in the pages that follow. 

Collections of miscellaneous taxes for the fiscal year 1941 amounted 

to $2,153,071,808, an increase of $400,002,900 compared with collections for the preceding year. 

ESTATE TAX DIVISION.-The Estate Tax Division administers the 

laws applicable to the estate tax and the gift tax. 

Collections of estate tax for the year amounted to $355,194,033, an 

increase of $24,307,984 over the collections for the preceding year. 

Collections of gift tax amounted to $51,863,714, exceeding the collections of this tax for the fiscal year 1940 by $22,678,596. 

Assessment and collection of proposed deficiencies in estate and gift 

taxes aggregating $39,701,646 asserted in 356 cases were withheld 

pending the adjudication of appeals filed with the United States 

Board of Tax Appeals. 

Returns.-There were 19,044 estate tax returns and 17,369 gift tax 

returns filed during the year. The estate tax returns are referred to 

the internal revenue agents in charge for investigation and determination of the tax, and later receive a post-audit review in the Bureau at 

Washington. 'Field investigations in connection with gift tax returns 

are conducted only in designated cases, which are likewise subjected 

to a post-audit review. All other gift tax returns are audited in the 

Bureau in Washington without reference to the field. 

Number of estate tax and gift tax returns on hand, received, and audited during the 

fiscal years 1940 and 1941 

Estate tax Gift tax 

1940 

14,173 

18,908 

1941 1940 

4, 814 

14,435 

1941 

12,907 

19,044 

5,592 

17,369 

22, 961 

16, 168 

1 6, 793 

On hand st beginning of year 

Received 

Total to be disposed of 

Disposed of 

On band at end of year 

33,081 

20,174 

12,907 

31,951 

18,090 

961 

19,249 

13, 657 

5, 592 

During the year, 1,057 out of 1,100 gift tax cases requiring post-audit review were disposed of, leaving on 

band only 43 cases requiring similar disposition. 

As a result of the Bureau and field investigations and audits, total 

assessments of $50,333,057 were made in estate tax cases and 

$8,014,664 in gift tax cases. 

Claims.-Claims for refund of estate tax and gift tax aggregating 

2,517 were received, compared with 1,186 claims received during the 

preceding year. The marked increase may be attributed to a decision 

of the United States Supreme Court holding that certain rents, dividends, and interest are not part of the gross estate in those cases where 

the executors elect to value the estates as of a date subsequent to the 

date of death. Refunds of estate and gift taxes, with interest thereon, 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 25 

were allowed in the total amount of $5,216,105 in 1,924 cases. Included in this amount were refunds of $530,277 authorized as a result 

of court decisions in 21 cases. 

Estate tax and gift tax claims received and disposed of during the fiscal year 1941 

Estate tax claims Chit tax claims 

Refund Abatement Refund Abatement 

Number Amount Nleint. • Amount NII:elnr• Amount ber 

Num- Amount 

Claims filed: 

On hand July 1, c A 

1940 437 $12, 068, 552. 71 

A 

$42, 152. 71 177 $3, 843, 954.41 $38,899,06 

Received 2, 176 13, 857, 014 75 5, 744, 022.20 391 1, 519, 489, 63 822, 960.25 

Reopened 50 999, 613. 78 40 148, 878. 81 

Total to be disposed of 2, 663 26, 420, 181. 24 391 5, 786, 174. 91 558 5, 512,322. 85 89 861, 859.31 

Allowed 0 561 2, 608, 210.14 371 4,771, 852. 37 198 303, 165. 95 81 721,015. 15 

Rejected 366 5, 301, 106.69 12 193, 332. 35 178 3, 652,386. 65 1 139, 162. 00 

Total disposed of 927 7,909, 116.83 383 4,965, 184. 72 376 3,955, 552. 60 82 860, 177. 15 

On hand June 30, 

1941 1, 736 18, 510,864.41 8 820, 990.19 182 1, 556, 770.25 7 1, 682.16 

No claims filed. overassessments allowed _ 

, 

• 952 1, 282, 296.55 202 3, 383, 548.63 213 260,387.05 12 1, 823,948. 72 

Interest allowed 660, 199. 71 101, 896.09 

Total amount allowed, includ- • 

ing interest_ _ . _ 513 4, 550, 656. 40 573 8, 155, 401. 00 411 665, 449. 09 93 2, 544, 963. 81 

Court decisions.-Among the more important decisions affecting 

the estate and gift taxes are the following: 

The decisions of the Supreme Court of the United States, dated 

February 3, 1941, in the cases of Guggenheim v. Rasquin (312 U. S., 

254), Lnited States v. Ryerson (312 U. S., 260), and Powers v. Commissioner (312 U. S., 259), involving the question of the value for 

gift tax purposes of a life insurance policy. The Court held that the 

cost of replacement rather than the cash surrender value at the date 

of the gift is the value which must be used for gift tax purposes. 

The decisions of the Supreme Court of the United States in the 

cases of Helvering v. Le Gierse (312 U. S., 531) and Keller v. Commissioner (312 U. S., 543), under date of March 3, 1941. These 

cases involved the question of whether the proceeds of a single premium life insurance policy purchased in conjunction with a single 

premium annuity contract were to be treated as insurance subject 

to the insurance exemption of $40,000. The Court held that such 

policies were not insurance within the scope of section 302(g) of the 

Revenue Act of 1926 but constitute transfers to take effect in possession or enjoyment at or after death and are taxable as such. 

The decisions of the Supreme Court of the United States in the 

cases of Maass v. Higgins, Abendroth, v. Commissioner, and Blacgue 

v. Commissioner (312 U. S., 443), under date of March 3, 1941, involved a question of whether where an executor avails himself of the 

option extended by the estate tax law to value a decedent's gross estate as of one year after decedent's death, the rents, dividends, and 

423348-41-3 
26 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

interest received during the year are to be added to the value of the 

property to which they are attributable and included in the value of 

the gross estate. The Court held that since Congress had not specifically stated in the Act that such rents, dividends, and interest were 

to be included in the gross estate, it was the evident intention that 

they were not to be so included. 

The decisions of the Supreme Court of the United States in the 

cases of He/vying v. Hutchings (312 U. S., 393), United States v. 

Pelzer (312 U. S., 399), and Ryerson v. United States (312 U. S., 405), 

decided on March 3, 1941, involved primarily the question of whether 

the donor of property in trust for designated beneficiaries was entitled 

to a single gift tax exemption or exclusion only to the extent of the 

first $5,000, or if entitled to separate exclusions of $5,000 for each 

beneficiary under the trust. The Court held that in the case of a 

gift to a trust created for the benefit of several beneficiaries, a separate exclusion was to be allowed for each beneficiary named under 

the trust unless the conveyances to the trust amounted to gifts of a 

future interest. 

TOBACCO DIVISION.—The Tobacco Division is concerned with the 

administration of all laws and regulations relating to the taxes on 

the manufacture, sale, or removal of tobacco, snuff, cigars, cigarettes, 

cigarette papers and tubes, the purchase and sale of leaf tobacco, and 

the removal of tobacco products without the payment of tax. 

The collections of tobacco taxes for the year amounted to $698,-

076,891, an increase of 14.7 percent over collections from similar 

sources for the preceding year. 

A comparison of the collections of tobacco taxes for the fiscal years 1940 and 1941 

Source 1940 1941 

Increase or dec ease (—) 

Amount Percent 

Cigars (large) 

Class A 

Class B 

Class C 

Class 17 

Class E 

Total 

Cigars (small) 

Cigarettes (large) 

Cigarettes (small) 

Tobaoco, manufactured 

Snuff 

Total 

Leaf tobacco sold 

Cigarette papers 

Cigarette tubes 

Cigarette floor stocks tax 

Grand total 

$9, 894, 669. 58 

127, 370. 58 

2, 435, 020. 80 

378, 882. 52 

61, 820.09 

$10, 218,926. 14 

129, 310. 45 

2, 581, 173. 79 

409, 441. 49 

61, 675. 73 

$324, 256. 56 

1, 839. 37 

146, 152. 99 

30, 558. 97 

—144.36 

hocvi cd 

12, 897, 763. 57 , 400, 527. 60 502, 764. 03 3. 9 

97, 685.79 

16, 854.96 

533, 042, 544. 34 

113. 969. 87 

12, 059.83 

616, 745, 234. 31 

16, 284.08 

—4, 795. 13 

83, 702, 689.97 

16. 7 

—28. 4 

15. 7 

54, 333, 802. 79 

6, 798, 556.53 

54, 927, 764. 18 

6, 899, 820.62 

543, 961. 39 

101, 264.09 

1. 0 

1.5 

61, 182,359 32 61, 827, 584. 80 645, 225. 48 I.1 

I, 727. 71 

1, 252, 252.40 

27, 255.50 

- - - 

11, 814. 90 

1, 408, 188. 33 

23, 127.02 

4, 534, 384. 21 

10, 087.19 

155, 935.93 

—4,128.. 

4, 1 48 

4, 84 21 

583. 8 

12. 5 

—15.1 

608, 518, 443.59 698, 076, 890.87 89, 658, 447. 28 14.7 

The tax on small cigarettes, not including floor stocks tax, amounted to $616,745,234, an increase of $83,702,690, or 15.7 percent, over the 

collections for the preceding year. The increase in the collections of 

tax on small cigarettes may be attributed to the change in rate from 

$3 to $3.25 per thousand effected by section 212 of the Revenue Act 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 27 

of 1940, which became effective on July 1, 1940, as well as to an increase 

in the consumption of cigarettes. 

The withdrawals of tobacco products tax-free for the use of the 

United States, under authority of section 3331 of the Internal Revenue 

Code, amounted to 84,384,800 cigarettes and 286,290 pounds of 

manufactured tobacco, such withdrawals being effected under 2,785 

permits. 

Number of claims for the refund and abatement of tobacco taxes, for the redemption 

of tobacco stamps, and for drawback, received and disposed of during the fiscal 

year 1941 

Refund Redemption Abatement Uncollectible Drawback 

Number Amount Num- be, Amount Numbar Nbamer. Amount Number Amount 

On hand July 1, 

1940 

Received 

Reopened 

Allowed 

Rejected 

On hand June 30, 

1941 

•11I, le) c0 

$2, 692.54 

270.51 

1 1, 880. 27 

1,082. 78 

233 

2, 035 

1 

2, 009 

15 

250 

$178, 512. 45 

2, 145, 776.31 

73.36 

2, 112, 618.81 

30, 548.18 

181, 195. 13 

7 

100 

1 

89 

11 

8 

$826.39 

35,132. 61 

2.73 

30, 188. 99 

1, 727. 56 

4, 045.18 

01) ■-• 

$149, 013. 71 

148,995. 97 

17.74 

8 

7 

1 

$1, 175. 79 

1, 136. 74 

.05 

39.00 

I In addition, interest in the amount of $62.43 was allowed. The sum of $2 112,619, representing claims 

allowed for redemption of stamps, includes the following: Stamps which were rendered useless, $1,213,309; 

stamps for which the owner alleged he had no further use, $6,987; and the value of stamps affixed to packages 

of tobacco products withdrawn from the market by the manufacturer or impo ter, 6892,323. 

Under the provisions of section 2197 of the Internal Revenue Code, 

manufacturers are authorized to withdraw from their factories 

tobacco products, without the payment of tax, for use as sea stores. 

These products may be delivered directly to vessels or to bonded 

tobacco sea stores warehouses for subsequent delivery to vessels. 

There are 26 such warehouses now in operation. 

Section 212 of the Revenue Act of 1940 imposed a floor stocks tax 

of 25 cents per thousand on all small cigarettes and 60 cents per 

thousand on all large cigarettes, held by any person for sale at the 

first moment of July 1, 1940, and each person subject to the 

required to make a return and pay the tax on or before August 

tax 

 total of 438,355 floor stocks tax returns, aggregating $4,534,384, 

and 876 claims for refund of floor stocks tax aggregating $13,566, were 

filed during the year. 

Detailed statistics covering the manufacture and removal of manufactured tobacco, snuff, cigars, and cigarettes, the receipt and shipment of leaf tobacco, and the removal of cigarette papers and tubes, 

will be found in tables which appear in the appendix. 

SALES TAX DIVISION.—The work of the Sales Tax Division includes 

the administration of the manufacturers' excise taxes, the taxes 

applicable to the transportation of oil by pipe line, electrical energy, 

telegraph, telephone, cable and radio communications and facilities, 

safe deposit boxes, admissions and dues, pistols and revolvers, the 

processing of coconut and other vegetable oils, bituminous coal, 

silver, hydraulic mining, narcotics and marihuana, the documentary 

stamp taxes, special occupational taxes, and the enforcement of the 

National Firearms Act and the Federal Firearms Act. 

Collections with respect to the taxes administered in the Sales Tax 

Division are shown in the following table: 
—2,473.03 

224, 134.85 

426 614. 07 14,154. 11 —9, 959.96 

Increase or 

Source 1940 decreed° (—) 1941 

Documentary stamps: 

Bonds of indebtedness, capital stock issues, etc.. 

Capital stock sales or transfers 

Sales of produce (future delivery) 

Playing cards 

Silver bullion, sales or transfers 

Total 

Oleomargarine. 

Colored 

Uncolored 

Special taxes 

Total 

Adulterated butter 

Renovated butter 

Mixed flour 

Filled cheese 

Total 

Manufacturers' excise taxes (title IV, Revenue Act 

of 1932, a.s amended, and subtitle 0, chapter 29, 

Internal Revenue Code, as amended) 

Transportation of oil by pipe line 

Electrical energy 

Telegraph, telephone, cable and radio messages, etc 

Leased wires, etc. (telegraph and telephone) 

Safe deposit boxes 

- Total 

• 

$18,145, 227.94 $22, 072, 503.40 $3, 927, 275.46 

15, 527, 950. 19 12, 176, 496. 92 —3,351,453.27 

0) 92.99 92.99 

4, 814,430. 40 4, 756, 586. 50 —57, 843.90 

193, 736. 79 51, 286. 28 —142, 450. 51 

38, 881, 345.32 39, 056, 966.09 375, 620.77 

31, 116. 52 19, 762.38 18,645.86 

759, 463. 51 860, 755.2Z 91, 291. 74 

1, 223, 020. 00 1,221,195.09 —1, 824.91 

2, 013, 600.03 2, 121, 712. 72 108, 112. 69 

13, 275.31 8, 954.72 —4, 320.59 

7,002.89 7, 093. 27 90.38 

6 241.83 7, 208.10 966.27 

155.24 6, 366.97 6, 211.73 

26, 675. 27 29, 623.06 2, 947. 79 

404, 298, 499. 35 570, 035, 996. 98 

11, 510, 646. 54 12, 480, 585.65 

42, 338, 501.94 47, 021,015. 62 

25,000, 050.81 25, 922, 369.61 

1, 367, 894.21 1, 408, 744.00 

1, 988, 933.9 2, 215, 898.10 

486, 504, 526.64 659,084, 609. 96 

165, 737, 497. 63 

989,939. 11 

4, 682, 513.68 

922, 318. 80 

40, 849. 79 

226,964.31 

172, 680,083. 32 

247, 740.46 

49, 075, 178. 06 

Admissions 

Dues anddnitiation fees 

Total 

Pistols and revolvers 

Narcotics 

Marihuana 

Delinquent under repealed laws 

Total 

Coconut oils, etc., processed 

National Firearms Act 

Total 

Hydraulic mining 

Bituminous coal 

Other miscellaneous receipts 

Grand total 

222, 824.82 

89, 508. 54 

605, 395.66 

4, 702.60 

2 502, 322.11 

1, 201,928.91 

12, 388.68 

22, 744, 354.47 

22, 756, 743. 15 

42, 480.70 

4,161,663. 92 

583, 595, 402.83 

77, 315, 743.34 

85, 301. 13 

684,197.90 

6,090. 38 

8 233, 651.85 

1, 009, 241.26 

15, 897.50 

23, 185, 936.03 

23,201, 833. 53 

7.67 

4, 386, 798. 77 

906, 449,690..51 

—192, 697.65 

445, 090. 38 

222, 851, 287. 68 

6, 334, 908.82 

21, 887, 916. 00 

6, 582,649. 28 

70, 963, 094. 06 

3,608.82 

441, 581.56 

49,322,918.52 

—4, 207.41 

78, 802. 24 

1. 387. 78 

—268, 670.26 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Collections during the fiscal years 1940 and 1941 

Repealed as of Tune 30, 1938. 

2 Includes taxes of $159,810.57 on fur, $143,095.47 on sporting goods, $71,655.70 on candy, $64,332.64 on 

Jewelry, $45,242.33 on toothpastes and toilet soaps, $6,622.13 on cameras and lenses, $2,488.17 on malt, 

$2,303.58 on checks, $2,075.86 on chewing gum, $2,061.60 on soft drinks, $1,588.13 on brewer's wort, $555.39 

on crude petroleum processed, refined, etc., $270.09 on grape concentrates, and $20.36 on dividends. 

s Includes taxes of $124,205.12 on sporting goods, $63,698.56 on fur, $21,611.17 on toothpastes and toilet 

soaps, $18,709.29 on Jewelry, $1,884.37 on cameras and lenses, $1,732.53 on checks, $770.98 on soft drinks, 

$501.02 on candy, $359.12 on crude petroleum, $100 on brewer's wort, $49.83 on chewing gum, $28.86 on malt, 

and $1 on yachts and boats. 

Correction of amount shown in 1940 report. 

REPORT OF COMMISSIONER OF INTERNAL . REVENUE 29 

Admission taxes.—The special investigations which have been conducted in certain metropolitan areas in connection with the taxes on 

admissions to theaters, operas, cabarets, and similar places of amusement, and on excess charges for theater tickets, have produced 

excellent results, both with respect to the increased collections and 

in securing greater compliance with the laws and regulations relative 

to the collection and return of the tax and the proper marking of 

tickets. A number of convictions were obtained for failure to collect 

or report the proper amount of tax or otherwise comply with the laws 

and regulations. 

Documentary stamp taxes.—The collections of documentary stamp 

taxes applicable to the issue and transfer of corporate bonds, the 

issue and transfer of shares of stock, deeds of conveyance, passage 

tickets, and foreign insurance policies amounted to $34,249,000, 

compared with $33,673,178 for the preceding year. 

Playing cards.—There were 67 manufacturers, repackers, or importers of playing cards registered during the year, and the production 

amounted to 48,853,893 packs of playing cards, compared with 

51,667,930 packs for the preceding year. 

Oleomargarine; adulterated, process, or renovated butter.—At the 

beginning of the year there were 41 manufacturers of uncolored 

oleomargarine engaged in the business. The number of manufacturers of colored oleomargarine was 24 at the beginning of the year 

and 28 at the close of the year. The production of oleomargarine 

during the year amounted to 4,489,410 pounds of colored oleomargarine and 339,445,528 pounds of uncolored oleomargarine, 

compared with 1,859,931 pounds of colored oleomargarine and 

301,857,570 pounds of uncolored oleomargarine produced during the 

previous year. There were 17,227 returns filed during the year by 

manufacturers and wholesale dealers in oleomargarine. 

The withdrawals, tax-free, for export of colored oleomargarine 

amounted to 1,864,674 pounds, compared with similar withdrawals 

of 649,489 pounds during the preceding year. There were withdrawn. 

tax-free, for the use of the United States, 2,075,586 pounds of colored 

oleomargarine, compared with 896,387 pounds for the preceding year. 

There were no manufacturers of adulterated butter registered during the fiscal year, and 4 manufacturers of process or renovated butter 

produced a total of 2,783,509 pounds, compared with a production 

of 2,706,852 pounds for the preceding year. 

Mixed flour.—There were 22 makers, packers, or repackers of mixed 

flour engaged in business during the year, and the production amounted 

to 28,855,995 pounds, compared with 25,468,470 pounds produced 

during the preceding year. 

Firearms, under the National Firearms Act and the Federal Firearms 

Act.—There were registered with the Bureau during the year, in 

accordance with the requirements of the National Firearms Acts 

158,532 machine guns and other firearms subject to the provision, 

of that Act, and 212,884 transfers of firearms were made under applications for such transfers The total number of firearms registered 

in accordance with the provisions of the Act during the period from 

July 26, 1934, the effective date of the Act, to June 30, 1941, inclusive, 

is 217,931. The collections of taxes under the National Firearms Act, 

including special taxes, amounted to $15,898. 
30 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

The total number of licenses issued during the current year to manufacturers and dealers in firearms, in accordance with the provisions 

of the Federal Firearms Act, was 22,464. 

Narcotics and marihuana.—The collections of taxes on narcotics, 

including special taxes, amounted to $684,198, compared with $605,396 

for the preceding year. The collections of taxes on marihuana, including special taxes, amounted to $6,090, compared with $4,703 

for the preceding year. 

Bituminous coal. —Chapter 33 of the Internal Revenue Code imposes two taxes with respect to the sale or other disposal of bituminous 

coal by the produCer, (1) a tax of 1 cent per ton on all coal sold or 

otherwise disposed of by the producer, and (2) a tax equal to 19% 

percent of the selling price or fair market value of the coal, if the producer is not a member of the Bituminous Coal Code and the transaction is one subject to the provisions and conditions of that code. 

During the year, 78,426 returns were filed by producers of bituminous coal, and the collections of taxes from that source amounted to 

$4,385,799, compared with 63,624 returns and collections of $4,161,664 

for the preceding year. 

Silver tax.—The collections of tax on the transfers of interest in 

silver bullion amounted to $51,286, compared with $193,737 for the 

preceding year. 

Hydraulic mining.—The collections of tax on hydraulic mining 

under the California Debris Control Act amounted to $8, compared 

with $2,481 for the preceding year. 

Assessments. —A total of $1,406,815,951, representing 1,698,279 

items, was assessed on 2,378 miscellaneous tax assessment lists, which 

included original and additional assessments of all miscellaneous 

taxes.' Included in the lists were 52,161 additional assessments, 

reulting from office audits and field investigations, representing taxes 

of

s $70,261,573. The interest assessed and collected amounted to 

$7,930,818. 

Field reports and returns.—At the beginning of the year there were 

on hand 119 field reports, representing additional miscellaneous and 

sales taxes in the amount of $1,223,220. During the year, 7,133 

field reports were received, representing $4,103,546, and 7,079 reports 

were examined and closed, covering taxes amounting to $4,683,418. 

At the close of the year there were 158 reports, representing $624,690, 

awaiting additional evidence, and 15 reports, aggregating $18,658, 

were on hand which had not been reached for consideration. In 

addition to the foregoing, 616,784 sales tax returns, aggregating $744,- 

495,640, were received and examined during the year. 

Claims.—The number of claims received and disposed of by the 

Sales Tax Division during the fiscal year ended June 30, 1941, is shown 

in the following table: 

I As a matter of administrative convenience, the Sales Tax Division complet he 

 es assessm 

Estateents Tax 

, schedules

dives 

laims c

claims and certificates of overassessment, and passes on offers in compromise for t 

Div 

the Tobacco Division, the Capital Stock Tax Division, and the Processing Tax Division with respect to 

sugar-tax claims. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 31 

Number of claims received and disposed of by the Sales Tax Division during the fiscal 

year 1941 

Claims 

Refund Abatement Redemption Uncolleetible 

Number Amount Num 

bar Amount Num bar Amount Num- ber Amount 

Sales taxes: 

On hand July 1, 1940. 906 $8, 045, 503.26 358 $3, 374, 120. 30 1 $5. 00 

Received 3,110 9,143, 374.44 1,045 3, 069, 239.25 1, 257 1, 024, 122.21 

Reopened 61 1, 089, 702. 12 52 174, 090.08 2 50. 99 

Allowed 2, 598 2, 846, 476.43 837 1, 927, 049.78 1, 250 997, 927.87 

Rejected 639 7,586,413.48 176 2, 378, 109. 51 9 384.95 

On hand June 30, 

1941 840 7, 825, 690.91 442 2, 312, 290.34 6 25, 865.38 

Miscellaneous stamps: 

On hand July 1,1940_ 61 144, 950. 28 52 186, 225.16 516 $193, 499.96 

Received 225 203, 983. 16 225 145, 121.62 3,011 693,887. 43 128 85, 936.01 

Reopened 11 31, 196. 73 11 18, 105.26 30 2, 004. 93 

Allowed 191 102, 520.81 139 131,385.93 2,198 321, 938. 87 125 85, 434.31 

Rejected_ 57 154, 714.45 72 140, 932. 99 1,010 161, 210.28 

On hand June 30, 

1941 49 122,894. 91 77 77, 133. 12 349 406, 243. 17 3 501.70 

Narcotics: 

On hand July 1, 1940. 9 13.25 1 202.50 3 151. 28 

Received 313 408.48 13 25.10 69 543.02 12 8,643.25 

Reopened 

Allowed 311 398.88 10 21.35 62 595.20 12 8,643.25 

Rejected 1 10.00 4 206.25 9 59.95 

On hand June 30, 

1941 10 12.85 6 39.15 

Marihuana: 

On hand July 1, 1940. 1 109. 78 1 100.00 1 4.00 

Received 2 135.81 5 334, 465. 37 2 2. 00 25 108, 943. 55 

Reopened 1 16.02 

Allowed 1 98.91 6 269,462.49 4 22.00 25 108, 943. 55 

Rejected 1 109.78 1 65, 102. 88 .02 

On hand June 30, 

1991 1 36.90 

Silver: 

On hand July 1, 1940_ 1 190.95 

Received 69 28, 019.00 1 918.46 

Reopened 

Allowed 69 28, 187. 16 1 918.46 

Rejected 

On hand June 30, 

1941 1 22.79 

Coal: 

On hand July 1, 1940. 8 309.69 100 31, 696.00 4 568.78 

Received 101 15, 029.48 1,278 573, 604.96 445 43, 336. 21 

Reopened 1 30.35 

Allowed 79 9, 518. 33 914 464, 903. 38 440 42, 563.93 

Rejected 16 4, 091.90 119 43, 913. 17 9 1,336.06 

On hand June 30, 

1941 15 1,759.29 345 96, 484. 41 

Total claims: 

On hand July 1,1940_ 985 8,190, 886. 26 513 3, 592, 534.91 520 193, 655.24 5 573.78 

Received 3, 751 9, 362, 931. 37 2, 635 9, 150, 475.30 3, 082 694,432.45 1, 868 1, 271, 899.69 

Reopened 73 1,100, 929.20 63 192, 195.34 31 2, 020. 95 2 50. 99 

Allowed 3,180 2.959, 012.38 1, 974 2, 821, 010.09 2, 264 322, 556. 07 1, 853 1, 244, 436.37 

Rejected 714 7, 745, 339. 61 372 2, 628, 284.80 1,014 161, 270. 25 13 1,721.01 

On hand June 

1941 915 7, 950, 394.86 865 2, 485, 930.66 355 406,282.32 9 26, 367.08 

Interest in the amount of $254,686 was allowed in connection with 

the adjusted claims shown in the foregoing table. 

Credit cases.—At the beginning of the year there were on hand 977 

sales tax credit cases, involving $1,215,428, and 10,735 cases, involving 

$14,377,748, were received. A total of 10,422 cases, involving $13,-

453,566, was disposed of during the year by the allowance of 10,132 

cases in the amount of $3,236,943 and the rejection of 290 cases in the 

amount of $21,237. At the close of the year there were on hand 

1,290 sales tax credit cases, involving $2,139,610. At the close of the 

year there were 101 cases, involving credits in connection with bituminous coal tax, totaling $2,846, and during the year 3,455 cases were 
32 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

disposed of by allowances in the amount of $100,741 and rejections in 

the amount of $6,027. 

Offers in compromise.—At the beginning of the year there were on 

hand 518 offers in compromise, aggregating $610,863, which had been 

submitted in settlement of civil and criminal liabilities incurred in 

connection with various excise and other miscellaneous taxes. There 

were received during the year 12,294 offers, aggregating $1,439,487; 

11,361 offers, aggregating $1,233,127, were accepted; 287 offers in the 

amount of $57,879. were rejected; and 39 offers, totaling $241,747, were 

withdrawn. At the end of the year there were on hand 1,125 offers, 

aggregating $517,597, under consideration or awaiting additional 

evidence. 

Miscellaneous tax special squads.—The small group of internal 

revenue agents and general deputy collectors operating in connection 

with the miscellaneous taxes, chiefly as a mobile force investigating 

delinquent taxes, continued to obtain excellent results. These field 

officers reported 2,350 cases, involving additional taxes, penalties, 

and interest amounting to $2,237,003. 

Court decisions.—There were a number of decisions by the various 

Federal courts during the year with respect to questions arising 

under the laws imposing the excise and miscellaneous taxes, the 

ma jority of which were favorable to the Government. 

CAPITAL STOCK TAX DIVISION. —The capital stock tax is imposed 

upon corporations carrying on or doing business during any part 

of the taxable year and is measured by the adjusted declared value 

of the capital stock of domestic corporations, or in the case of foreign 

corporations by the adjusted declared value of the capital employed 

in the United States. 

The collections of capital stock tax during the year amounted to 

$166,652,640, compared with $132,738,537 for the preceding year, 

an increase of $33,914,103, or 25.5 percent, and the greatest yield 

from this source since the capital stock tax was first imposed. 

Domestic and foreign corporations filed a total of 535,159 returns, 

of which 33,438 were submitted by corporations organized since 

June 30, 1939. There were 38,028 delinquent returns filed for the 

years 1933 to 1939, inclusive. 

As a result of the review and audit of returns, 19,921 assessments 

were made, involving tax, penalty, and interest in the amount of 

$994,813, compared with 16,457 assessments totaling $1,732,327 

made during the previous fiscal year. 

Number of capital stock tax claims received and disposed of during the fiscal year 1941 

Refund Abatement Uncollectible Total 

Num- b, Amount Num- bar Amount her 

Num Amount Der 

Num- Amount 

On band July 1, 1940.... 

Received 

Reopened 

Allowed 

Rejected 

On hand June 30, 1941... 

722 

7, 172 

157 

2, 780 

4,440 

831 

$1, 328, 348.73 

22,085, 571.66 

79,231. 08 

51849.88 

22,012,

6, 

 524.28 

963,980. 29 

218 

927 

7 

754 

181 

215 

6150, 075.88 

143, 183. 85 

123, 752. 05 

66, 047.50 

103, 787.84 

327.66 

303 

2, 370 

2, 23 8 

1 4 

423 

$14, 728.21 

185, 073. 29 

173, 332. 14 

 737.38 

20, 732.00 

1, 241 

10, 489 

164 

5, 770 

4,635 

1, 469 

$1, 493, 150. 82 

22, 413, 828.60 

79, 558. 72 

815, 729. 

22,082, 309. 

07 

 14 1,088, 499.93 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 33 

Claims for refund of capital stock tax, with interest thereon, were 

allowed in 2,780 cases involving $596,776. This amount includes 

$52,320 the refund of which was authorized as the result of court 

decisions. 

PROCESSING TAX DIVISION.—The Processing Tax Division is concerned with the administration of the tax imposed on the manufacture of nianufactured sugar under Chapter 32 of the Internal 

Revenue Code, and the adjustment of several types of claims arising 

as a result of the invalidation of the taxing provisions of the Agricultural Adjustment Act and the repeal of related legislation. 

Sugar tax.—Manufacturers of manufactured sugar filed 1,727 

returns and the taxes collected amounted to $74,834, 840, compared 

with 1,927 returns and collections of $68,145,358 for the previous 

year. Claims for refund filed in connection with the exportation 

of sugar totaled 796 and represented the total amount of $1,364,454, 

compared with 1,614 claims filed during the previous year representing $2,048,263. 

Sugar tax claims received and disposed of during the fiscal year 1941 

Export Overpayment Livestock feed 

Number Amount Number Amount Number Amount 

On hand July 1, 1940 42 $10, 666. 84 5 $6, 481.91 

Received 796 1, 364, 454.31 11 13, 803.52 54 $4, 369.19 

Reopened 70 3, M. 57 1 10.57 2 339.67 

Total 908 1, 378, 461.52 17 20, 296.00 58 4, 708.86 

Allowed 848 1, 335, 781. 78 15 6, 989. 44 27 2, 207. 74 

Rejected 43 7, 522.35 1 12, 482. 41 19 1, 128. 11 

On hand July 1, 1941 17 35, 157. 39 1 821.15 10 1, 373.01 

Total 908 1, 378, 461.52 17 20, 296.00 56 4, 708.86 

Abatement Grand total 

Number Amount Number Amount 

On hand July 1, 1940 47 $17, 148. 55 

Received 6 3153, 017. 52 867 1, 535, 644.54 

Reopened 73 3, 600.81 

Total 6 153, 017. 52 987 1, 556,483.90 

Allowed 4 29.99 894 , 345, 008.95 

Rejected 2 152, 987.53 65 174, 120.90 

On hand July 1, 1941 28 37, 354. 55 

Total 6 153,017. 52 987 . 556, 483.90 
34 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Claims; processing and related taxes.—The various types of claims 

relating to the processing taxes and related taxes, received and disposed of, are shown in the following table: 

Claims for refund or payment received and disposed of during the fiscal year 1941 

Revenue Act of 1938 

Section 601 Section 602 Title VII 

Number Amount Number Amount Number Amount 

Dn hand July 1, 1940 

Received 

Reopened 

Total 

Allowed 

Rejected 

Transferred to Income Tax 

Unit 

On hand July 1, 1941 

Total 

2 

25 

$194. 64 

40, 203.73 

342 

10 

232 

$1, 603, 283.24 

10,910. 82 

638,469. 86 

2, 319 

119 

321 

$9, 516, 111. 83 

10, 357, 375.68 

531, 803.00 

27 40, 398.37 584 2, 252, 663.92 2, 759 20, 405, 290.49 gi'" 

35, 961.44 

4, 436.93 

870 

197 

17 

851, 724.05 

1,088,988.45 

311, 951.42 

1, 350 

1, 236 

37 

136 

1,174, 962.95 

6, 329, 218. 75 

9, 947, 243. 47 

2, 953, 865. 32 

27 40, 398. 37 584 2, 252, 663. 92 2,759 20, 406, 290.49 

Cotton ginning Act Tobacco Act Grand total 

Number Amount Number Amount Number Amount 

On hand July 1, 1940 

Received 

Reopened 

Tail 

Allowed 

Rejected 

Transferred to Income Tax 

Unit 

On hand July 1, 1941 

Total 

563 

8, 958 

58 

$8, 721. 11 

202, 395. 66 

1,081. 79 

448 

1, 254 

90 

$18, 755.91 

21, 127. 74 

2, 835. 54 

3, 672 

10.7 726 

$11, 146, 872.09 

10, 592, 004. 52 

1, 214, 393.92 

9,579 212, 198. 56 1, 792 42, 719. 19 14, 741 22, 953, 270.53 

7,873 

1, 669 

37 

83, 591.56 

126, 912. 58 

I, 695.42 

1, 383 

402 

7 

29, 223.13 

13, 331.00 

165.06 

11, 002 

3, 505 

37 

197 

2, 175. 462.13 

7, 562, 887.71 

9, 947, 243. 47 

3, 267, 677.22 

9, 579 212, 198. 56 1, 792 42, 719. 19 14, 741 22,953, 270.53 

ALCOHOL TAX UNIT 

Collections of the liquor taxes amounted to $820,056,178 in the 

fiscal year 1941, compared with $624,253,156 in 1940, an increase of 

$195,803,022, or 31.4 percent. The increase in collections over the 

previous year is principally the result of the higher rates imposed by 

the Revenue Act of 1940. In comparing the yield from the excise 

taxes on liquors (see table 1, pp. 56 to 91 for taxes grouped under 

this heading), it is found that the largest increase was in distilled 

spirits, for which collections increased 39.6 percent over the previous 

year. The collections from the excise tax on wines increased 36.7 

percent, while the collections from the excise tax on fermented malt 

liquors increased 20.5 percent. 

Of the total liquor taxes collected, $484,163,478 came from distilled 

spirits, $13,186,464 from wines, and $322,706,236 from fermented 

malt liquors. Taxes collected from distilled spirits constituted 59.0 

percent of the total in 1941, compared with 55.6 percent in the previous 

year. 

On June 30, 1941, the following premises and proprietors qualified 

under internal revenue laws, and engaged in the production, distribuREPORT OF COMMISSIONER OF INTERNAL REVENUE 35 

tion, or use of alcohol and alcoholic liquors were under the supervision 

of the Alcohol Tax Unit: 

Under permit requirements of the Federal Alcohol Administration Act: 1 Number 

Importers ' 1, 014 

Distilleries: 

Alcohol 3 39 

Brandy 134 

Registered 121 

Warehousing and bottling: 

Bonded warehouses: 4 

Alcohol 60 

Internal-revenue 274 

Tax-paid bottling houses 126 

Wine producers and blenders: 

Wineries 1, 017 

Bonded wine storerooms 89 

Rectifying plants 237 

Wholesalers: 5 

Wholesale liquor dealers 5, 550 

Wholesale malt liquor dealers 10, 306 

Not under permit requirements of the Federal Alcohol Administration 

Act: 

Breweries 537 

Denaturing plants. 41 

Bonded dealers in specially denatured alcohol 50 

Bonded manufacturers using specially denatured alcohol 4, 199 

Hospitals, laboratories, and educational institutions using tax-free 

alcohol 6, 576 

Vinegar plants using vaporizing process 13 

Bottle manufacturers 66 

Retail liquor dealers 256, 653 

Retail malt liquor dealers 147, 063 

1 Separate permits are required for lessee operations. In addition to the number of premises shown, the 

lessees are as follows: Registered distilleries, 62; tax-paid bottling houses, 13; rectifying plants, 19. A lessee 

authorized to operate two or more premises is counted once for each premise. 

2 An importer is required to hold only one permit regardless of the number of his premises. 

I Permits are required only where alcohol is produced for nonindustrial use. 

I Permits are required only if the proprietor conducts bottling operations. 

z Total number of premises. Permits are required for those making sales to trade buyers. A wholesaler 

is required to hold only one permit regardless of the number of his premises. 

Includes three distillery denaturing bonded warehouses. 

Several new regulations were issued during the year. The regulations relating to distilled spirits, wines, and fermented malt liquors 

are now complete with the exception of regulations concerning alcohol, 

which will be issued in the near future. 

PROCEDURE DIVISION. —This division is responsible for planning 

and developing procedure for the headquarters and field offices of 

the Alcohol Tax Unit.; assists in drafting regulations, Treasury Decisions, mimeographs, and circulars; reviews for revision all forms 

prescribed by the Alcohol Tax Unit; and is charged with the administration of regulations relating to traffic in containers of distilled spirits 

and the supervision of the Statistical Section. 

Statistics.—Regular monthly and annual statistical reports and 

releases concerning the activities of the Alcohol Tax Unit were prepared. Special statistical research work was performed relating to 

proposed legislation and inquiries from officials and the public. A 

statistical analysis was made of the uses of specially denatured alcohol 

during the fiscal year 1940. Statistical tables covering the operations 

relating to distilled spirits, fermented malt liquors, and wines, and 

enforcement activities are contained in the appendix. 

The following data summarize operations of the legitimate liquor 

industry under the supervision of the Alcohol Tax Unit: 
36 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Ethyl and denatured alcohol.—More ethyl alcohol was produced 

during the fiscal year 1941 than in any prior year. Production 

amounted to 298,845,417 proof gallons, which is 55,117,661 proof 

gallons more than the previous year's figure. Tax-paid withdrawals 

increased from 24,344,306 proof gallons in 1940 to 27,866,523 proof 

gallons in 1941. Of the denatured alcohol produced, 17,676,172 

wine gallons were completely denatured and 135,834,261 wine gallons 

were specially denatured. This compares with 15,352,033 wine gallons 

of completely denatured and 111,409,797 wine gallons of specially 

denatured alcohol produced during the fiscal year 1940. 

Distilled spirits.—The total production of whisky, rum, gin, brandy, 

and other distilled spirits in 1941 was 175,208,746 tax gallons, an 

increase of 31,753,554 tax gallons, or 22.1 percent, over the production 

in 1940. Compared with the previous year, whisky production increased by 22,858,680 tax gallons, or 23.1 percent, while brandy production increased by 6,937,052 tax gallons, or 37.6 percent. 

Tax-paid withdrawals of domestic distilled spirits, other than 

alcohol, decreased from a total of 103,981,635 tax gallons in 1940 to 

102,685,625 tax gallons in 1941, or 1.2 percent. Each kind of spirits 

except brandy and rum shared in this decrease. Tax-paid withdrawals 

of whisky amounted to 80,541,974 tax gallons, a decrease of 0.9 

percent. The withdrawals of bottled-in-bond whisky amounted to 

13,543,847 tax gallons, or 16.8 percent of total tax-paid withdrawals of 

whisky. 

Withdrawals of distilled spirits, other than alcohol, for tax-payment 

are permitted in packages and tank cars direct from distillery cistern 

rooms. During the fiscal year, tax-paid withdrawals direct from 

distilleries were as follows: In packages, 433,447 tax gallons; in tank 

cars, 8,553,390 tax gallons. A total of 102,685,625 tax gallons were 

withdrawn on payment of tax during the fiscal year (see table 59), of 

which 93,698,434 tax gallons were withdrawn from internal-revenue 

bonded warehouses and 354 tax gallons from export storage warehouses. Withdrawals from internal-revenue bonded warehouses consisted of 180,609 tax gallons from tanks, 12,088,075 tax gallons in 

cases, and 81,429,750 tax gallons (including 1,607,360 tax gallons for 

bottling in bond after tax-payment) in packages. 

Total stocks of spirits in internal-revenue bonded warehouses at 

the close of the fiscal year aggregated 551,424,175 tax gallons, of which 

504,080,691 tax gallons were whisky. 

Rectified spirits.—The production of rectified distilled spirits and 

wines increased from 47,656,570 proof gallons to 54,157,628 proof 

gallons, or an increase of 13.6 percent. The quantity of rectified 

whisky produced increased from 37,977,224 proof gallons to 44,317,166 

proof gallons, or an increase of 16.7 percent. The production of 

cordials and liqueurs increased 4.3 percent, while the production of 

gin decreased 1.5 percent. 

Fermented malt liquors.—Tax-paid withdrawals of fermented malt 

liquors decreased from 53,014,230 barrels to 52,799,181 barrels in 

the fiscal year 1941, or a decrease of 0.4 percent. The percentage of 

beer withdrawn by pipe line for bottling increased from 50.9 percent 

of the total in 1940 to 52.7 percent during the current fiscal year. 

Wines.—Production of still wine increased from 212,367,737 gallons 

to 286,371,423 gallons. Tax-paid withdrawals of still wine aggregated 88,592,333 gallons, or an increase of 7.8 percent over the previous 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 37 

fiscal year. The withdrawals of domestic sparkling wines increased 

by 72.7 percent, and tax-paid withdrawals of domestic vermouth produced at wineries increased from 394,245 gallons to 1,077,382 gallons, 

or by 173.3 percent. 

ENFORCEMENT DIVISION.—The activities of the Enforcement 

Division include the investigation, detection, and prevention of willful 

and fraudulent violations of the internal-revenue taws relating to 

distilled spirits, wines, and fermented malt liquors. 

During the fiscal year, 11,826 stills were seized, having an aggregate mash capacity of 2,056,230 gallons,' and in connection therewith, 

6,868,078 gallons of mash were seized and destroyed. Investigators 

also seized 275,396 gallons of spirits and 4,752 automobiles and 

trucks. The total appraised value of the property seized amounted 

to $2,424,565. A total of 26,010 persons were arrested for Federal 

liquor law violations. 

The enforcement of Regulations 17 and Regulations 92 has been 

increasingly effective. Because of the voluntary cooperation of 

dealers in this program, illicit distillers have found it necessary to go 

far afield for supplies and purchase them in small quantities, thus 

materially increasing their cost of operations. The reports received 

from dealers have in the meantime led to the seizure of 497 illicit 

distilleries and 148 vehicles, with 692 arrests. The preventive and 

enforcement program under these regulations has substantially aided 

in reducing the number and size of illicit distilleries. 

In connection with the enforcement of the Liquor Enforcement 

Act of 1936 for illegally introducing tax-paid spirits into dry States, 

215 cars and 12,150 gallons of tax-paid liquor were seized and 332 

persons were arrested. Indictments aggregating 273 were returned 

and 196 persons were convicted in such cases. 

During the past year, 268 applications for pardon and 3,886 appli: 

cations for parole were examined and reports submitted. A total of 

266 applications for pardon and 3,970 applications for parole were 

received. 

FIELD INSPECTION Divisioir.—This division plans, coordinates, and 

supervises the permissive functions in the field offices of the 15 field 

districts. A group of technically trained field inspectors, who serve as 

representatives of the Alcohol Tax Unit in maintaining an efficient 

permissive organization in the field offices, are assigned and directed 

by this division. They make frequent examinations, by actual inspection of records, documents, and otherwise, to determine whether 

law, regulations, established policy, and procedure are being followed; 

devise and recommend plans and methods for greater efficiency and 

economy in the conduct of the work; supervise the installation of new 

procedures which have been approved by the headquarters office; 

coordinate and standardize the functions and work in the various units 

of the permissive divisions; determine the adequacy and efficiency of 

the personnel and suitability of space and equipment and the practicability of its reallocation for the proper handling of the work; make 

recommendations relative to the judicious expenditure of public funds; 

and confer with district supervisors on problems of organization, 

management, and service. 

Represents the cubic capacity of still pots and cookers. Column stills which operate without a still 

pot or cooker are not reflected in this total. The size of illicit stills is reflected more properly by the mash 

facilities. The cubic measurement of the mash fermenters of all the illicit stills seized during the fiscal year 

was 9,971,340 gallons. 
38 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

The division maintains general supervision over the activities of 

inspectors and storekeeper-gaugers in the field districts and provides 

for the general instruction of these groups. A total of 72,189 inspections of plants and permittees was made during this period by general 

inspectors in the supervisory districts. Inspections of retail dealers 

were conducted by junior Inspectors, and the following statement 

shows the results accomplished by this group: 

Number of inspections made 239, 139 

Number of dealers found violating 24, 012 

Number of violations found 27, 459 

Percent of dealers found violating 10. 0 

Amount collected $518, 710. 46 

This division is also responsible for the final determination for the 

approval or disapproval of applications for the establishment of 

industrial alcohol plants, alcohol bonded warehouses and denaturing 

plants, distilleries, fruit distilleries, distillery denaturing bonded warehouses, internal-revenue bonded warehouses, and rectifying plants. 

Final review of qualifying documents submitted in connection with the 

establishment of bonded field warehouses, bonded storerooms, bonded 

wineries, and breweries is made by the division. 

Many changes were made in the premises, construction, and equipment of established plants during the fiscal year, requiring examination of applications, notices, bonds, consents of surety, plats, plans, 

and other documents submitted in connection with such changes. 

The total number of such examinations, including those covering 122 

new plants and 205 plants discontinued, was 21,885. 

The work of the central file sections of the field offices was reorganized under the supervision of the field inspectors. Standard methods 

were installed in each office governing the arrangement and subdivision of basic permit files, both active and inactive, miscellaneous 

files, and audit report files. ind ividual files were subdivided by major 

subjects to facilitate ready reference and to permit the several divisions 

of the office to utilize individual folders of the same file simultaneously. 

Field inspectors made administrative examinations of the field 

offices during this period. These inspections covered every phase of 

permissive activity in the respective districts, resulting in the correction of numerous discrepancies and deviations from prescribed policy 

and procedure, and made available to the Bureau complete data for 

consideration of further standardization and simplification of field 

activities. 

All records of the inspection divisions of the field districts were 

reorganized and standardized under the supervision of field inspectors, 

which resulted in the elimination of duplication in work by field 

employees. 

LABORATORY DIVISION.—The Laboratory Division comprises a 

central laboratory in Washington, D. C., with 13 branch laboratories 

located in continental United States, and 1 in San Juan, P. R. Previous to May, 1941, there were 15 branch laboratories, but those in 

Los Angeles, Calif., and Pittsburgh, Pa., were discontinued and 1 was 

established in Louisville, Ky. i 

The Laboratory Division performs all the chemical work for the 

Bureau of Internal Revenue and Bureau of Narcotics; it frequently 

assists the Bureau of Customs, Secret Service, Federal Bureau of 

Investigation, Coast Guard, Post Office Department, State alcoholic 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 39 

beverage control boards, and police departments. The greater part 

of the work, however, has to do with the internal revenue and narcotic 

laws. 

The Washington laboratory is primarily concerned with basic problems, such as the development and modification of methods of analyses 

for the great variety of products submitted and the formulation of 

denatured alcohol. This necessitates intensive research as to the 

actual components for all alcoholic products; a knowledge of the 

effect of diverse manufacturing processes on related products; abstracting currect technical publications; and the testing of proposed 

denaturants. 

Routine activities of the Washington laboratory include the examination of the formulae for all preparations and processes in which 

denatured alcohol is used before permits are issued by the district 

supervisors for the withdrawal of alcohol. In most cases samples are 

analyzed to determine whether they are according to formulae and 

sufficiently protected against removal of their denaturants and other 

added compounds to produce potable alcohol. This policy appears 

to be very effective in that few cases of diversion by cleaning specially 

denatured alcohol preparations have been reported. 

Preparations manufactured with tax-paid alcohol and wine are 

examined for the purpose of determining whether they are fit for use 

as a beverage and thus subject to the tax levied on rectified spirits. 

Processes used in distilleries and in industrial alcohol and rectifying 

plants are reviewed by the laboratory. 

For the Miscellaneous Tax Unit the laboratory examines such commodities as oleomargarine, mixed flour, filled cheese, adulterated 

butter, lubricating oils, and soaps. The Washington laboratory also 

examines many samples relative to the enforcement of the Federal 

Alcohol Administration Act. Members of the staff frequently appear 

in court as expert witnesses in cases involving the refund of taxes; 

they assist in revisions of regulations and drafting of Treasury Decisions, and serve as consultants to administrative officers of the 

Bureau. 

Except for the research features, the work of the field laboratories 

parallels that of the Washington laboratory. The chemists act as 

advisors to the district supervisors on technical matters; they inspect 

breweries, distilleries, rectifying plants, and places seized by enforcement officers. 

Methods were developed with which storekeeper-gaugers are able 

to determine the amount of alcohol in butanol, acetone, and ether. 

Improved methods for detecting fingerprints and erased writing have 

been developed. Satisfactory progress has been made in the application of spectrographic and chromatographic absorption methods to 

the analyses of wines and distilled spirits. 

Branch laboratories received 78,640 samples, a decrease of 1,366 

over the preceding year; 1,327 days were spent by the field chemists 

in court proceedings and 314 days in inspections, making a total of 

1,641 days outside work, a decrease of 32 days; 17 percent of the 

samples examined in the field were narcotics. The laboratory in 

Washington, D. C., examined 6,715 samples, which is 2,178 less than 

during the preceding year; 68 days were spent in court proceedings 

and inspections by chemists from the Washington laboratory, an 

increase of 24 days. 
40 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

AUDIT DIVISION.-This division is responsible for the tax accounting, assessment, claim, and compromise work of the Alcohol Tax Unit. 

It administers the provisions of internal-revenue laws and regulations 

pertaining to the manufacture, storage, tax-payment, exportation, 

sale, and use of alcohol, denatured alcohol, distilled spirits, wines, and 

malt liquors. 

Assessments.-During the fiscal year, 28,026 reports of violations 

of the internal-revenue laws pertaining to alcoholic liquors were 

received from the field offices, reviewed and audited, and tax liabilities 

disclosed thereby were assessed, including ad valorem penalties. 

There were certified to the Commissioner for assessment 21,529 

items, totaling $5,476,957, listed in the Bureau, and 292,177 items, 

aggregating $140,469,958, listed by collectors. 

Number of claims received and disposed of by Audit DivMon during fiscal year 1941 

Redemplion of 

stamps 

Refund Abatement 

Uncolleetible Total Amount 

On hand July 1, 1940 

Received during year 

Allowed 

Rejected 

On hand June 30, 1941 

62 

2,096 

1, 795 

213 

150 

9, 

7, 

1, 

249 

085 

608 

307 

419 

2, 

1, 

231 

052 

784 

297 

202 

9, 

9, 

129 

646 

307 

43 

425 

671 

22,879 

20, 494 

860 

2, 196 

$4, 

8, 

5, 

4, 

2, 

334, 292.89 

235, 824. 12 

400, 899. 59 

480. 230.12 

688,987. 27 

Offers in compromise-Liquor taxing laws.-At the beginning of the 

fiscal year there were on hand 583 offers, aggregating $15,448. During 

the year, 7,788 offers, amounting to $347,514, were received, of which 

231 were forwarded to the Department of Justice and 194 were 

returned to the field offices. During the year, 6,640 offers, aggregating 

$201,225, were accepted, and 564 offers, totaling $47,952, were rejected, 

leaving 742 offers on hand at the end of the fiscal year. 

Offers in compromise-Federal Alcohol Administration Act.-During 

the year, 43 offers, aggregating $5,330, were received, of which 33, 

totaling $4,740, were accepted, and 7 offers, totaling $430, were 

rejected, leaving 3 offers on hand at the close of the year. 

Drawback claims 

Number 

received 

Amount 

allowed 

Alcohol used in flavoring extracts, and toilet and medicinal spirits exported 

Distilled spirits and wines bottled for export 

Stills exported 

Total 

611 

183 

9 

$221, 400. 96 

17, 728. 56 

214. 00 

803 239, 843.52 

BASIC PERMIT AND TRADE PRACTICE DIVISION.-This division is 

charged with administering the provisions of the Federal Alcohol 

Administration Act and regulations which have been issued pursuant to 

its authority. Its activities involve the enforcement of the trade practice provisions of the Act aimed at the prevention of certain unfair 

trade practices on the part of alcoholic beverage producers, importers, 

and wholesalers, including exclusive retail outlets, so-called "tiedhouse" relationships, commercial bribery, consignment sales, false and 

misleading labeling and advertising, bulk disposition of distilled spirits, 

and interlocking directorates in the distilling and rectifying fields. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 41 

The broad purpose of the statute is the regulation of the conduct of the 

legitimate liquor industry. 

The Federal Alcohol Administration Act requires that all producers 

(other than brewers), importers, and wholesale distributors of alcoholic 

beverages secure basic permits. The issuance, denial, revocation, 

suspension, and annulment of basic permits, have been delegated to 

district supervisors, a small staff being retained in the Washington 

office for the purpose of directing and coordinating such activities. 

The experience of one year under the decentralized system has shown 

it to be a definite improvement over the centralized system, since there 

have been more complete facilities for investigations of applicants 

and of violations, and it has been possible to hold hearings where the 

parties in interest were located. The following table reflects the permit 

activity under the Federal Alcohol Administration Act during the 

year and the number of permits of each class outstanding on June 

30, 1941: 

New 

permits 

issued I 

Amended 

permits 

issued 

Permits ter- i.

minted r - " Permits in 

effect June 

30, 1941 5 

Distillers 58 314 54 354 

Rectifiers 39 33 41 314 

Importers 86 89 103 1,014 

Wine producers and blenders 66 66 149 1,130 

Warehousing and bottling 841 56 212 627 

Wholesalers 1,334 1,245 1,785 12,042 

Total 2, 424 1, 803 2, 344 15, 481 

Includes permits Issued to lessee operators, alternating proprietorships, changes in ownership, management, control, etc., which do not involve the establishing of additional premises. 

Includes permits surrendered for cancellation, automatically terminated, or revoked. 

$ Represents active permits and includes lessee operators, also permits in Puerto Rico. Data on Outstanding permits heretofore published included inactive permits. 

The Federal Alcohol Administration Act provides that no bottler 

or importer shall bottle or remove from customs custody for consumption distilled spirits, wine, or malt beverages, unless the bottler or 

importer upon application has obtained and has in his possession a 

certificate of label approval or a certificate of exemption from label 

approval covering such distilled spirits, wine, or malt beverages. The 

number of applications for label approval filed was approximately the 

same as the number filed the preceding year, and a total of 78,989 

applications were acted upon. 

In connection with the enforcement of the advertising regulations, 

the division reviewed 76,859 advertisements appearing in 24,787 

publications, representing a slight increase over similar activities for 

the preceding year, and took appropriate regulatory action in 887 cases 

which involved various types of irregularities. There were also reviewed 4,803 radio programs and 4,250 pieces of point of sale advertising. Particular attention was given to advertisements containing 

patriotic themes, references to the Army or Navy, or appeals to the 

defense forces, the regulations being amended during the year to give 

the Bureau more authority to deal with objectionable advertisements 

of this nature. Particular activity was also necessary in connection 

with advertisements of domestic products designed to replace former 

imported items and advertised in some instances in a misleading 

manner. 

423348-41 4 
42 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Violations of the trade practice provisions of the Federal Alcohol 

Administration Act have involved the furnishing to retailers of 

equipment such as electric mixers, heating devices, dispensing equipment, signs, etc. ; exclusive sales agreements; paying retailers for window 

displays; and making sales on consignment or with the privilege of 

return. These practices result in pressure selling, which constitutes 

unfair competition and results in advantages to the larger companies 

which have sufficient capital to subsidize their customers in this 

manner. There were 199 such cases handled during the year, the 

penalties imposed including permit suspensions for as long as 60 days 

and the acceptance of substantial offers in compromise. 

TECHNICAL. STAFF 

The Technical Staff is the appellate agency within the Bureau of 

Internal Revenue for the determination of Federal income, profits, 

estate, and gift tax liability. It is an independent organization in the 

Commissioner's office and acts under the supervision of the Commissioner. Its work relates principally to those classes of taxation over 

which the United States Board of Tax Appeals has jurisdiction. The 

Staff organization consists of an administrative office in Washington 

and 10 field divisions containing 37 local offices. The principal 

functions of the Bureau personnel assigned to these field divisions are 

(1) to determine the liability of taxpayers who have protested the 

findings of the internal revenue agents in charge, and (2) to consider 

proposals submitted by taxpayers for the settlement of cases docketed 

by the Board. In the performance of these duties the heads of the 

field divisions have exclusive authority to represent the Commissioner 

in cases coming within their territorial jurisdiction, provided, however, that proposed settlements in docketed cases must be concurred 

in by representatives of the Chief Counsel for the Bureau, acting as 

division counsel. 

Facilities offered by the Technical Staff for the settlement of tax disputes.—Under the present system of decentralized determination of 

income, profits, estate, and gift tax liabilities, the Technical Staff 

offers taxpayers opportunities for the settlement of tax disputes at 

three separate stages of the procedure: First, before the issuance of 

a formal notice of deficiency, which, in the absence of a waiver of the 

statutory restrictions, is required by law as a basis for assessment and 

collection; second, in exceptional cases, after the issuance of such a 

notice but before the filing of a petition to the United States Board 

of Tax Appeals for redetermination of the liability stated in the 

statutory notice; and, third, after such a petition has been filed and 

the case has been placed on the Board's docket. 

A taxpayer who disagrees with the determination of liability by the 

local internal revenue agent in charge has the privilege under regular 

procedure of submitting his case promptly to the local division of the 

Technical Staff for a final administrative determination of his liability. 

The head of the Staff division has exclusive authority to represent the 

Commissioner in making such determinations, and in the absence of 

fraud, malfeasance, misrepresentation of a material fact, or an important mistake in mathematical calculations, his decision, based on an 

agreement with the taxpayer, will not be disturbed. In the absence 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 43 

of an agreement, the controversy is subject to review only by the 

United States Board of Tax Appeals and the Federal courts. 

In order to encourage the proper settlement of tax disputes in the 

offices of the examining agents, and to insure the fullest possible 

development of the issues in unsettled cases, the privilege of submitting disputed liabilities to the Technical Staff without first petitioning 

the Board of Tax Appeals is restricted to taxpayers who have tried 

in good faith to reach agreements with the internal revenue agents in 

charge through discussion with employees in the agents' offices. 

However, if a taxpayer asks for an immediate Staff review of an 

agent's preliminary findings, without prior conference in the agent's 

office, the internal revenue agent in charge may, in the exercise of 

reasonable discretion, grant the request. 

If no agreement as to liability is reached with the taxpayer through 

conference in the Staff division, the head of the division directs the 

internal revenue agent in charge to issue a statutory notice of deficiency in the Commissioner's name. Similar statutory notices are 

also issued by the internal revenue agents in charge on their own initiative (a) if taxpayers, after conference in the agents' offices without 

agreement, and upon being apprised of their rights, fail to ask for 

consideration of their cases by the Technical Staff; (b) if, after receiving preliminary notices of deficiency, they fail either to accept the 

agents' findings or to file protests and ask for conferences; and (c) if 

the agent in charge, on the completion of a revenue agent's investigation, finds that the collection of the tax might be jeopardized by the 

delays incident to the issuance of a preliminary notice and the holding 

of a conference. 

If for any reason a taxpayer receives a statutory notice without 

having previously had an opportunity to present his contentions fully 

to the Technical Staff, the local Staff division may, in exceptional cases, 

grant him a conference during the 90 days allowed by the law for the 

filing of a petition. In rare instances, also, a case that has been 

considered by a Staff division without agreement before the issuance 

of a statutory notice may be reconsidered during the 90-day period. 

Of the cases considered by the Staff before petition to the Board in 

the fiscal year ended June 30, 1941, only about 1 in 14 was originally 

considered during the 90-day period; of the cases in which statutory 

notices were directed by the heads of the Staff divisions, only about 1 

in 27 was settled on reconsideration during the 90-day period. Of the 

total number of cases dealt with in nondocketed status, over twothirds were settled by agreement or default. 

If an asserted deficiency is not agreed to before the issuance of a 

statutory notice or during the 90-day period, the tax will be assessed 

and collected unless a timely petition is filed with the Board. During 

the fiscal year ended June 30, 1941, petitions were filed with respect 

to approximately one-third of the total number of statutory notices 

mailed, most of the remainder being cases in which the taxpayers 

had failed to respond to the agents' preliminary notices of deficiency. 

Of the petitions filed, about one-half, involving somewhat more than 

one-half of the total amount of the petitioned liabilities, arose from 

statutory notices issued by direction of the heads of Staff divisions, 

after conferences with the taxpayers. The remainder of the petitions 

were filed almost entirely in response to statutory notices issued on 

the initiative of the internal revenue agents in charge. In more than 
44 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

two-fifths of these cases the taxpayers had conferred with representatives of the internal revenue agents in charge but had made no request 

for consideration by the Staff; in another two-fifths they had not asked 

for conference in either the agents' offices or the Staff divisions, 

although afforded opportunities for such conferences; and in a little less 

than one-fifth, jeopardy notices were issued without any opportunity 

for conference. 

With rare exceptions, conferences are not offered to taxpayers in 

docketed cases that have been fully considered by the Technical 

Staff in nondocketed status. Instead, such cases are promptly 

referred to the division counsel, for defense of the Commissioner's 

determinations before the Board. However, in cases originally received by the Staff in docketed status the head of the Staff division 

customarily invites the taxpayer to a conference as soon as practicable 

after the petition has been answered by the division counsel. In the 

fiscal year ended June 30, 1941, such cases constituted a little less than 

one-fourth of the total number received by the Staff in docketed status 

and nondocketed status combined (those coming back in docketed 

status after Staff consideration at a prior stage being counted only 

once). Over two-thirds of such cases were settled on original consideration by the Staff. The remainder, in which conferences could 

not be arranged or agreements could not be reached after conference, 

were referred to counsel for the Staff divisions, for defense before the 

Board. 

Cases referred to counsel for defense are not ordinarily reconsidered 

for settlement except at the suggestion of counsel or at the request of 

the taxpayer. Nevertheless, in the fiscal year ended June 30, 1941, 

settlements on reconsideration numbered nearly 45 percent of the 

docketed cases not settled on original consideration (including cases 

in which the Staff directed statutory notices after consideration without agreement in nondocketed status). Nearly five-sixths of these 

settlements were effected after the Board had placed the cases on trial 

calendars for hearing at an early date, so that prompt and decisive 

action had become necessary. A considerable number of dockets were 

also settled at the same stage on original consideration, owing to the 

taxpayers' failure to respond, up to that time, to the Staff's invitation 

to discuss settlement. However, settlement of such belated cases 

is often seriously impeded by shortage of time. In all, about 55 

percent of the cases disposed of after being set for hearing were settled 

by agreement, and another 2 percent were closed by the taxpayers' 

failure to prosecute. 

So far as practicable, all cases taken up for reconsideration are 

assigned to the same conferees by whom they were originally handled, 

in order to avoid encouraging a practice of withholding agreements in 

the hope of reopening cases with different conferees. The counsel for 

the Staff divisions are not vested with authority to settle cases referred 

to them for defense, although their concurrence is required in all 

settlements of docketed cases. 

If an agreement reached with a Staff conferee is disapproved by a 

superior officer, the taxpayer is accorded the privilege of conferring 

with that officer and endeavoring to reach a settlement with him. In 

the fiscal year ended June 30, 1941, the various settlement procedures 

were successful in disposing of nearly seven-eighths of all the cases 

coming within the jurisdiction of the Technical Staff, so that about 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 45 

one-eighth of such cases were ultimately submitted to the Board for 

decision. 

In pursuance of the Bureau's broad policy of settling tax disputes 

at the earliest possible stage, Staff consideration is generally available 

before the issuance of a statutory notice, but the taxpayer is under no 

compulsion to confer with the Staff at that stage. If he prefers, he 

may permit a statutory notice to be issued and may file a petition to 

the Board without conference either in the agent's office or in the 

Staff division, or he may confer with the agents but not with the Staff. 

However, statistics for the fiscal year ended June 30, 1941, show that a 

large majority of the taxpayers who did not accept the findings of the 

internal revenue agents in charge preferred to discuss their cases with 

the Staff as promptly as possible, without first filing petitions with 

the Board. 

The facilities offered by the Technical Staff for the settlement of 

disputed tax liabilities may be summarized as follows: Every taxpayer 

who does not accept the findings of an internal revenue agent in 

charge as to his tax liability is given full opportunity to discuss his 

case exhaustively before an experienced conferee who has not previously 

considered the issues and who has authority to make a final decision, 

subject only to the approval of superior officers in the same field division, who will themselves grant the taxpayer a hearing if they disapprove a proposal of settlement accepted by the conferee. Whether 

the case is considered before or after petition to the Board, the•settlement procedure is the same, except that the concurrence of counsel is 

required in cases settled after petition. If any case cannot be satisfactorily settled by these steps, the Commissioner's determination of the 

taxpayer's liability is defended before the Board by the counsel for the 

Staff division. 

In the case of deficiencies found by collectors of internal revenue, 

where, after protest, the taxpayer and collector are unable to agree, 

the protest will be referred to the internal revenue agent in charge for 

consideration. Thereafter the same procedure applies as in protested 

cases originating in the offices of the agents in charge. 

Field operations.—The work of the Staff field divisions falls into 

two principal classifications: (1) income, profits, estate, and gift tax 

cases not before the United States Board of Tax Appeals, including 

cases in the pre-90-day status, cases in the 90-day status, and cases 

involving overassessments and claims; and (2) cases docketed by the 

United States Board of Tax Appeals. This work, under the decentralized plan in operation throughout the country for the fiscal years 

ended June 30, 1940 and 1941, covers substantially all of the settlement activities formerly conducted by the various agencies of the 

Bureau in Washington in income, profits, estate, and gift tax cases. 

The statistical data reflecting the work of the Technical Staff (see 

table 93 on page 176) are divided in general into two parts: (1) the 

record of work accomplished and results obtained on contested cases 

in a nondocketed status; and (2) the record of work done and results 

obtained on cases docketed by the Board. These figures are based 

upon records maintained in the Staff field offices and are taken from 

the regular monthly reports prepared by those offices and compiled 

from the records so kept. 

At the beginning of the fiscal year 1941 there were on hand 3,487 

contested nondocketed cases awaiting Staff action and 1,556 such 
46 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

cases awaiting action by taxpayers on statutory deficiency notices 

directed or sustained by the Staff, or a total of 5,043 nondocketed 

cases on hand July 1, 1940. During the year, the Staff had net 

receipts (less transfers and returns without action to agents in charge) 

of 6,551 such cases. Of these nondocketed cases, 4,614 were disposed 

of by agreed settlement; 934 cases were closed and the deficiencies 

assessed in full after issuance of the statutory notice, no petition 

having been filed; 517 overassessment and claims cases were closed 

without agreement; and in 2,205 cases petitions were filed with the 

Board. The number of nondocketed cases remaining on hand June 

30, 1941, was 3,324, including 2,646 awaiting Staff action and 678 

awaiting action of taxpayers on directed statutory notices. The 

inventory of nondocketed cases was reduced during the fiscal year 

1941 by 1,719 cases. The amount of taxes and penalties involved 

and results obtained in the nondocketed cases handled by the Staff 

are shown in table 93 on page 176. 

With respect to docketed cases, 4,355 dockets were on hand July 1, 

1940, and net receipts during the fiscal year were 4,731. There were 

3,072 dockets disposed of by stipulation, 239 were dismissed by the 

Board, and 1,522 were submitted to the Board by trial on the merits. 

On June 30, 1941, 4,253 dockets were on hand, representing a decrease 

in inventory during the year of 102 dockets. Details of the taxes 

and penalties involved and results of Staff action in the docketed 

cases handled during the year are set out in table 93 on page 177. 

Staff records show that during the fiscal year ended June 30, 1941, 

the Staff field divisions directed the issuance of 2,278 statutory 

notices of deficiency. 

Petitions were filed with the Board during the fiscal year in 2,205 

cases which had been considered by the Staff prior to such filing. 

Also, Staff records show that of the cases on which the Staff directed 

or sustained the statutory notice, 32.3 percent were not petitioned to 

the Board. 

Coordination of field activities.—Under the decentralized plan, the 

Washington headquarters office of the Staff under the direction of the 

Commissioner performs those supervisory functions necessary to the 

maintenance of uniformity in procedure and consistency in treatment 

of taxpayers by all of the 10 field divisions. This central group in 

Washington is responsible to the Commissioner, through the Head of 

the Staff, and consists of three coordinators, each with one technical 

advisor as chief assistant and a number of technical employees as 

general assistants. This group is charged with the work of (a) 

originating and improving procedure in the handling and control of 

cases in the field divisions, (b) coordinating Staff procedure with the 

other units and offices of the Bureau, (c) clarifying Bureau policies 

on questions not fully covered by Bureau regulations and rulings or 

Board and court decisions, and (d) visiting the field divisions and 

offices for the purpose of personally inspecting the work in progress 

and discussing problems which apply to the field divisions generally. 

The Washington headquarters office post reviews all decisions rendered by Staff field divisions, including not only cases settled but also 

those cases in which no agreement was reached. This post review 

work enables the coordinators to analyze carefully the field operations 

and to suggest changes and corrections for guidance in the handling of 

future cases with a view to uniformity in tax administration. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 47 

During the fiscal year coordinators of the Washington office, including the Head of the Staff, made a total of 52 visits of inspection to the 

37 field offices. Personal contacts were made with the technical men 

in order to insure a mutual understanding of the problems faced. 

Offices of internal revenue agents in charge were also visited in the 

course of these trips for discussion of mutual problems. 

General operating policies of the Technical Staff are determined in 

the Washington office both as to technical questions of general interest 

and as to matters of administrative practice. A conference of all 

Staff division heads and division counsel was held in Washington 

during the month of March of this year for consideration and discussion of these matters. Records are maintained for reference and 

control purposes and reports are assembled and summarized in 

Washington. Necessary details and transfers of personnel are 

arranged by the Washington headquarters office. 

Compromises, extensions of time, and closing agreements.—The 10 

field divisions of the Technical Staff also consider offers in compromise 

of liability in income and profits tax and certain other classes of cases, 

except where criminal prosecution, receivership or other court proceeding, or delinquency penalties only may be involved. The head of each 

division is authorized to reject finally an offer in compromise or to 

recommend its acceptance by the Commissioner. All rejections are 

post reviewed by a central compromise group in the Washington headquarters office of the Staff. This central group assists in the determination of operating policies in compromise matters, and in the coordination of field procedure in compromise cases. 

There were on hand July 1, 1940, 609 compromise cases; 1,233 cases 

were received during the year, and 1,197 disposed of, as follows: 

Accepted, 504; rejected, 520; withdrawn, 133; and transferred, 40. 

The number of compromise cases on hand June 30, 1941, was 645. 

The Washington office of the Staff also considers applications for 

extensions of time within which to pay income taxes and reviews for 

the Commissioner final closing agreements executed pursuant to section 3760 of the Internal Revenue Code. There was 1 extension of 

time case on hand July 1, 1940; 187 were received and 186 disposed 

of, leaving 2 cases on hand June 30, 1941. With respect to closing 

agreement cases, there were 60 on hand for review at the beginning of 

the year; 507 were received and 488 disposed of, leaving a balance on 

hand June 30, 1941, of 79 cases. 

OFFICE OF THE CHIEF COUNSEL 

The activities of the office of the Chief Counsel for the Bureau of 

Internal Revenue include the defense of all Federal tax cases appealed 

to the United States Board of Tax Appeals; the review of refunds, 

credits, and abatements in excess of $20,000; consideration of various 

administrative and internal-revenue tax matters referred to that office 

by the Secretary, the Under Secretary, an Assistant Secretary of the 

Treasury, the General Counsel for the Department of the Treasury, 

the Commissioner, the Assistant to the Commissioner, the heads of 

units of the Bureau, collectors of internal revenue, and other branches 

of the Department. They include also the preparation, at the request 

of the Department of Justice or of the United States attorneys, of data 

for use in the prosecution or defense of tax cases (civil and criminal) in 
48 REPOR1' OF CO~lMlSSroNER OF ]);TEHN.\L RI'JY-E~U~;

suit, unci eompiinne(' with reqlJ€'sts fot ussistunce in such cas~s; ond the 

prepnrntion, revision, imd review of r<.'gulntions, Tronsury deeisions 

JlliJn<.'ogrnph~, anel rrJIings for the guidmwe of the ofIiccrs and prn~ pIo}'cc!'. of the BUrt'nu of Intpl'lIul R('n~nue nml ot11l.'I'5 cOJlccrn('d. 

Th(· o{flC'e is di\~jd<.'d into scv('n dhTisiolls, viz, Appl"uls, Civil, Interprc_ 

t,ati\1u, PCLHl1, Rpview, Legislntion llUd Rl"gnlu\,iolls, and Alcohol Tnx. 

Thf' Chief Counsel's cOlillniu,('e. eOllsist,ing of thn'e UWIIl bel"S 

serves in l1Jl lldvisory ('npHeity to tlie Chid Co"lll1sd, Assisttlnt Chief 

COIl11sel, gOlw1"ui llssisinnts, lind spreial nssist-unts, who refer to the 

commit,t,cr~ e!1s<'s from liB divisions of the office. The committee 

consid('r:=; th('8c Cllses lind mnk('$ wTiUen rpcommelJdntions as to their 

proper disposition. The commitleo is nlso charged with the liunl 

n>\'i~'w of enscs involving comprorniscf.; Hnd closing- llg-!'('l'llIeuts 

pr(~violls to t.heir h~ing ~rllt. to the SccrN,nry of t.110 Trenslll'Y fol' hi~ llpprovnl. AI, lobe beginning of the fiscnl YC'tlr 1041 the ('ommith~e

hnd on hand 63 Cfl!,;('~; ,it, rcceiv('(.l 2,072 nud closed 2,115, leilying 

20 <:ases p<'lldillg nt, \;lw"dose of the fiscal yeur. 

TI~o H(·organiz!\tion. SeeLic!ll is cl':1I'.ged with t,h~ dlll,y of prol('(it,ing 

t,he mtCl'C'sts ~ll}d C'll! IIns of the tJ nilI'd St,n tes 1Il bunkrllpLcy uud 

l'eccivership proecedings, indllding- pnrLieulurly proceed ings insti t uted 

under seeLioJls 77, nB, Chapters X llud XV of the NnlionnI BllIlkruplcy Act, ilnd HITtlng-ernent proceedings under Chapters Xl, XII, and 

XIII of t,he Act. 

Nu /libel' of cm·7ifo·tlfe reor(Jal),i zalinn (} ",I tlrrtl1llicmetd (;a.~es h()7/dled d'~ri,.g tM 

.fi~c"l Ill''!r 19/d 

Cascsprnrlillg-on .11Jly I. [!)4Q •• ' ._ .• ' _ 2.369 

New ca,;w; reccived during thea1 yeaL • . J. :m5 

a. 764 

Cnf<('s	 rlj:;p().~l'd of:
 C'ls['r; d().~()r1 __ __ _ _ -­ 066 

Cw,,,oIJdnted_. ._ _ ._ • __ • . __ ._. _.
 

Clinng-i,d to bl\[lknlpk~- or rt.'e()i\'(~rshjJl. • __ - __ ._ e'_ - - 364
 " Tran~fl,rred to ot,l1('r l:wctioIlS . •• __ - - - - - ---. -- 5 

I. :~:i9

~=

Clt,;e"pelldjllg.J\lnC~O,l!)4L 0	 ._ 2.,J25

In 287 0 r 1,110 corpol'l1 tc l'f'orgllnizll t.ion easC's closed during tile yC'llf, 

clHims were filed in tho amollnt of $0.62:3,.509, ami were settll·d fOf 

$2,u;J[j,042. 

In 3M) of t,hC' arrllllgC'menC ('nsf'S elosl'd during the )"1'111', claims 

were filed ill \.hc nmOllllL of $249.479, und Wf'I'f' 5ettI('1l fol' $15S,4119, 

III addit,ion to t1l('>'e, tllf'J'(' \Vcre' 32~~ <;uses c!osC'd in which no tftX 

c1l1ims W(le() filod, 

,I\'umb(!1' of bOllkr"7'/C'/ owl ,.cce;v6·r.'j,;p ctr~,·., elos/:d ,J"r;lI!! tlil: !tnl/' 

Ca"cs 7.3101 pnnrlinJ.( .Jnl.\' J. l\),llL __ ---- --- -------­ t U;,9 :\l'\\, CI.\.'<I'S recein'd cltlri1\~ t,he Ii"cal y(·,u ­

11. !li3 

.;: 

CIl."",", dhpo:,co of: ;,,752 Cn'(·;;clos\.'d --- -- ------------- •. ­ 1 Cl\"'~'s t,rnn"f"rrl·(j to r<'I,rf("llIizatiull--- -----­ C:l.,',C·' trlln",C.'rr"d to ~lrn'IJl:!I'ull·IJt. Chnpt,'r X1 _ _._-_-_~- - - -­ ---!1 

;•. 772 

----=---= 

(;11;;(>' pl'W!iUP; .JIIIIC 30. JtI·IJ n, 201

PloJPOHT OF COlVL\lISSlOXEU OF 1l';'l'ERKAL HEYEl\UE 49 

In IJw 5,7:32 el,lSC'S dosrd J'clllLing to hnnkTuptcy find l'N'civ(>rship, 

clil ims wpTe filed in UlC nmollnt of S5,lOo,261, find tho sum of 

S1.71 i ,filS was <:ollccted. 	 . . . During: t.he ~ISl'lll yell,!" 4,29, nc:\' b'lJ.,krUptcy nn~ rc(~Clverslllp

'l-'('S wen" rec:mve<1, and 362 ellS('S III wlud, t.ux was ul\'olvpd were 

c,'1

:'(:d in which dw debtor cOJllpnnie~ we're originully in\"olved in 

I ( . .	 1 t .itlH'r reoJ'O'fllllzI1tlOll, llITongl'IllCnt, 01' rea property arruTlgemen 

\rocccdin<'s'" hut. IntC'r went into liqtlidllt,iotl, Tlw 7 bnnkruptcy

~ll';I'S fineI"" 13 rece.ivership el~ses .which were eliminnted were f~und tn be jnvoln~d 1.1] l'CorgaOlzlltlon und llrrangement procecdlTlgs, 

f(':;p(,ct,iveIy. .. ~. .. There were pcndmg dUl'lng the ypnr 15,/3, reorgillllznt,loll, nrrn.ngc-­

mt'nt., bllukrnpt.cy, nnd receivership cases.. Of thes;., cases, 6,718 

were elosf'd \Vlt,h 11 totnl tSlX collected of $4,531,129, Ihere nrc now 

PI~lHliI1g 8.62G Cllses. .. . . . . ApPEALS DIVISION.-Tlus dl\'JSlon hns chnl'go of uU CllS(>·'S mvolvtng 

inc-ome, exe(~ss profits, lmjllst, cnrichml'nt, estn,te, nnd gift tax('s 

pc~ding beforc the .United Stilt~s Board. of 'I'll-X APlwuls, Counsd 

sS!'1lgned to t.he vunous fi0ld offICI'S, w1l1011 won~ Cfen ted undor the 

dccclltrnlization program of tho BureMI of Internal HE'vcl1Iw, propare 

answers to pctit,ions fikd with tbe Boarcl of Tnx Appenls and IHlvise 

tht' various StnfT divisions upon legllI qlwstions tU'ising in the delormiDittion of income, profits, estate, and gift tax liabilitv. All proposed 

S('ttlem('n ts are concl\lTed in bv counsel. Counsel !llso IUlVe exclusi ve 

lluthority to rppresenL the Corllmissiollcr of Intel1lnl Revenue in Lbe 

defense of uLl cases set. for hC'llring before the Board of Tax Appeals, 

The division has immediate chargo of nIl-cases involving refunds of 

amounL', collectcd under the AgriculLlU'flI .&djustment Act pending 

bl'forr the United Stale's Processing Tnx 13o11,1'd of Hcview. It 

prf'par('s lI.Il pkndings in snch cnsC's and i1pp0l),l'S fol' and represents 

the Commissioner of Inh'rnnl Hev('IJue nt t,he trial t,]um!Of. In 

~ddition, the cliYisioIl hili:; t,he sllrne jurisdiction, duties, nnd act,iviLics 

In matters im-olyjng Titks III, IV finu VII of the H(~\'enue Act of 

1936 IlS hnve tlw Civil, lntcrpret,ntivc, Legislation und RegulnLions, 

and .Revil':v Divisions l1lH1 the Reorganization, Bllnkruptcy, nnd 

RecOlverslnp Sect,ion wit.h r('spl'ct to quest.ions involving incomc. 

cX;~s~ pr~)f~t~, en,pitai stock, estate, gift., flncl miscelll1llC01.lS tltXr~s,

] IllS dlnslon !llso lws n. gcnel'fll !,lIpPl'visioll of tht~ prepitrfit,ion of 

t,be. ~ontt'llts of 1,11e records on r(>view in nll cnses wherein are filed 

p('htlous f<:l'. r(~view by the Unjtcd Stn,tf's Oircuit Court.s of Appcnb 

of finnl dpcIslons of eit,ber th(~ Unit,ecl Stntcs BOilnl of Tas APPOllls or 

g~' Pl'f;l:~~'.ssing Tnx llonrd of Revi('\:. I~, ~uch pro.ceediTl~s, where t.lw il~ llI~IJ:S~l_?~er of In.ternl1l R('venue IS pCI.lilOllel', tIllS dut,y IS pOJ'f~)rm<;d

t11( rh\ilslon suhJcct to ll.pprovlll by the DCpilrtlllcnt of Just,ICC; m cUS\''''- wll"'" t ...' pC'tltloner, 1 I'" IIllS soIe ('I

Huge 0 f th'" ... e ,HXpil;\'f'l' IS t HJ (IVISIOn 

\ pr('lHll'i\ t.JOn of tlJe record. 

CJ\'IL .DIVISlON.-Tho work of Ole Civil Division ll.lcludl's t.lw 

~f{P1H!\tIOll of st,n telnents of fnet for tho Dcpnrt.nwnt of .Tustice in 

in t~ctl(~IlS brought hy l,n~pn'yers to recovCl' tnxes and for injullctions 

III IlpdcJ'nI courts, whwh stntemcnls sct fort.h t,he position of t.he n111'('11 u tI', . Ill'	 ­ se' on. to ISSU('S mvo VC'( nne eontltJn 1'(,ferellc('s 10 ll,pphcnblc 

TI~t'o~~. ~f t,lw revl'nue tlcts, regu.ln tions, ltnd. dllei:,ioll~ of the COIII'tS. 

a.t ~ld1\ IS!OIl nlso llss('mbl(,s thr' cVltkllec, obtll,l!Is Witnesses, and nssists 

II' t.1'lnl of caseS .....hen rt·quested by the Dcplll'lment of JIIstit'('j 
50 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

prepares recommendations for or against the institution of suits in 

connection with claims of the Government against taxpayers, transferees, bonding companies, and others; and, when suits are recommended, prepares statements for the Department of Justice similar 

to those in actions brought by taxpayers. Stipulations of facts for 

the use of the Department of Justice and for submission to the courts 

in actions in the district courts and in the Court of Claims are examined and approved, modified, disapproved, or new stipulations 

prepared; and the division makes recommendations for or against an 

appeal from adverse judgments of district courts and for or against 

applications to the Supreme Court for writs of certiorari in cases of 

adverse decisions rendered by the circuit courts of appeals and the 

Court of Claims. The division makes recommendations for or against 

acceptance of offers submitted for settlement or compromise of cases 

pending in court. 

It handles all cases in which liens for taxes are involved in mortgage foreclosure actions pending in Federal and State courts. The 

division considers all applications for the release of Federal tax liens 

and the discharge of property for such liens which are permissible 

under section 3186 of the Revised Statutes as amended by section 

613 of the Revenue Act of 1928 and section 509 of the Revenue Act 

of 1934. 

Compromise Section,.—The prosecution of claims filed by collectors 

(a) against the estates of deceased taxpayers, (b) against insolvent 

banks, and (c) in liquidation proceedings, including assignments for 

the benefit of creditors, is handled by the Compromise Section. At 

the request of the Department of Justice, this section assists in trials 

involving the above types of claims. 

INTERPRETATIVE DIVISION.—The functions of this division consist 

of: the preparation of letters and memoranda for the signature of 

the head of the division, the Chief Counsel, or the Commissioner, 

interpreting internal revenue statutes, where so requested by the 

administrative branches and units of the Bureau of Internal Revenue 

or by other divisions of the General Counsel's Office; the review of all 

correspondence for the signature of the Commissioner or of the Secretary or of an official of his office, containing a ruling or opinion regarding internal revenue laws prepared in the administrative units of the 

Bureau and routed through the Chief Counsel's office for approval; 

assisting in the preparation and review of briefs to be filed with the 

United States Board of Tax Appeals in key cases; reviewing actions 

on decisions; reviewing closing agreements covering proposed transactions; editing material published in the Internal Revenue Bulletin•, 

and the preparation of opinions and rulings in special cases assigned 

by the Chief Counsel. 

Included in this division is the Digest Section, the functions of 

which are to preserve, digest, and make readily available to the 

members of the Chief Counsel's staff all opinions, rulings, and other 

documents which have been prepared or reviewed by the Chief 

Counsel's office. 

PENAL DIVISION.—The Penal Division deals with practically all 

classes of internal revenue tax cases when criminal liability is alleged, 

including among others income and profits tax cases, miscellaneous 

tax cases, and social security tax cases; considers offers in compromise 

of liability where criminal proceedings have been instituted or recomREPORT OF COMMISSIONER OF INTERNAL REVENUE 51 

mendations for prosecution have been made to the Bureau or by the 

Bureau to the Department of Justice, and prepares opinions construing 

the criminal and percentage penalty statutes. It also prepares 

opinions as to whether cases closed by agreement under section 606 

of the Revenue Act of 1928, and similar provisions of other Revenue 

Acts and the Internal Revenue Code, should be reopened because of 

"fraud or malfeasance, or misrepresentation of a material fact"; and 

considers claims for reward under section 3463 of the Revised Statutes 

or section 3792 of the Internal Revenue Code. Whenever requested 

by the Department of Justice, an attorney from this division assists 

in the prosecution of criminal cases. 

At the beginning of the fiscal year, 1,441 cases were pending in the 

Penal Division. New cases in the number of 958 were received and 

879 cases disposed of during the year, leaving 1,520 cases pending on 

June 30, 1941, a net increase of 79. 

Formal claims for reward for information relative to violations of 

internal revenue laws were filed and disposed of during the year 

ended June 30, 1941, as follows• Pending July 1, 1940, 533; presented 

or reopened during year, 265 (including 37 informal claims converted 

to formal claims); disposed of during year, 271; pending June 30, 

1941, 527. Of the 271 claims disposed of, 184 were rejected, and 87 

were allowed in a total sum of $57,936, all of which were paid during 

the fiscal year. The 527 claims pending are awaiting the closing of 

the tax cases to which they relate, the receipt of reports from the 

field officers of the Bureau who are investigating the claims, or administrative action in Washington There were also 119 informal 

claims disposed of during the fiscal year (including 37 informal claims 

converted to formal claims), which left 116 informal claims pending. 

REVIEW DIVISION.—This division reviews overassessments of 

income, excess profits, war profits, estate, gift, and miscellaneous taxes 

proposed for allowance (also deficiencies when coupled with overassessments) where the amount of the overassessments in any case 

exceeds $20,000, and proposed refunds or credits of any tax in excess 

of $20,000. It prepares the reports to the Joint Committee on 

Internal Revenue Taxation required by section 3777 of the Internal 

Revenue Code, where the overpayments of income, excess profits, war 

profits, estate, or gift taxes exceed $75,000, and prepares public 

decisions where the overassessments exceed $20,000. It also examines 

and reviews special cases referred to it by the Chief Counsel for the 

Bureau. 

LEGISLATION AND REGULATIONS DIVISION.—The regulations issued 

under the internal revenue laws, including tax conventions with 

foreign countries, and including the profit-limiting provisions of the 

Act of March 27, 1934, as amended, relating to certain Army and 

Navy construction contracts, and the reports on legislation introduced 

in Congress affecting the internal revenue, except as they relate to 

taxes on alcoholic beverages, are prepared or reviewed in the division. 

In addition, this division considers suggestions for amendments of 

and additions to the various internal revenue laws and prepares reports thereon for the consideration of the Commissioner and the 

General Counsel. It participates in the preparation of income tax 

forms and assists in the drafting of tax conventions. 

ALCOHOL TAX DIVISION.—This division handles the legal work 

arising in connection with the administration and enforcement of the 
52 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

internal revenue liquor laws and the Federal Alcohol Administration 

Act. The work includes the preparation of opinions and briefs 

relating to assessment, collection, abatement, and refund of liquor 

taxes and penalties; compromise of civil and criminal liabilities; and 

the remission or mitigation of forfeitures. This division prepares 

citations to revoke industrial and denatured alcohol permits, conducts 

permit hearings, and reviews revocations records, also similar work 

in connection with the issuance, suspension, and revocation of permits 

under the Federal Alcohol Administration Act. It assists' the Department of Justice in connection with civil and criminal cases arising 

under the internal revenue liquor laws and the Federal. Alcohol 

Administration Act; gives legal advice to the Deputy Commissioner 

of the Alcohol Tax Unit, district supervisors, and other officials on 

questions involving interpretation or construction of said laws; and 

reviews all correspondence prepared in the Alcohol Tax Unit involving 

legal questions. 

Work performed by this division, in Washington and in the field, 

during the fiscal year included preparation of 7,312 memoranda, 342 

briefs, 5,550 opinions, 3 parole cases, 269 libels, and 17 indictments. 

Review work included 6,788 case reports, 72 claims of over $5,000 each, 

and 7,586 compromise cases. In addition, 9 revocation cases were 

handled, and 909 petitions for remission or mitigation of forfeiture 

were examined and finally passed upon. 

INTELLIGENCE UNIT 

The Intelligence Unit is principally concerned with the investigation, in cooperation with revenue agents and deputy collectors, of 

cases involvmg alleged evasion of taxes; investigation of charges of 

a serious nature against employees in the Internal Revenue Service; 

investigation of applications of attorneys and agents to practice 

before the Treasury Department; and investigation of prospective 

appointees to the Service. 

During the fiscal year, 871 investigations were made of alleged 

evasion of income and miscellaneous taxes, resulting in the recommendation for prosecution in 239 cases involving 446 individuals. 

There were 192 individuals tried, of whom 156 were convicted and 

36 acquitted. Investigations of these cases resulted in recommendation for assessment of additional taxes and penalties totaling $33,810,-

418. 

There were 2,411 investigations of applications of attorneys and 

agents to practice before the Treasury Department, and 57 investigations of charges against enrolled agents and attorneys. These 

investigations resulted in the disbarment of 14, reprimand of 2, 

suspension of 2, and the rejection of applications of 11. Five names 

were stricken from the rolls during the course of disbarment proceedings and two resignations were accepted "with prejudice." 

Investigations were made in 87 cases of charges against employees 

of the Bureau of Internal Revenue, resulting in the separation from 

the Service of 44 employees and the prosecution of 13, of whom 12 

were convicted. 

There were 7,535 cases of miscellaneous character investigated, 

including investigations of a number of cases for the Bureau of Narcotics, the Customs Service, and investigations of persons under conREPORT OF COMMISSIONER OF INTERNAL REVENUE 53 

sideration for appointment to various positions in the Treasury 

Department and national defense agencies. Included in this number 

were applications for appointment to the positions of revenue agents, 

deputy collectors, and various other positions in the Internal Revenue 

Service. 

CONCLUSION 

Internal revenue collections exceeded by nearly two billion dollars 

the largest amount heretofore received in any fiscal year. In performing this task, coupled with the administration of all of the provisions of the various internal revenue laws, it affords me pleasure to 

state that I have continued to receive the wholehearted cooperation 

of every branch of the Internal Revenue Service. 

GUY T. HELVERING, 

Commissioner of Internal Revenue. 

Hon. HENRY MORGENTHAU, Jr., 

Secretary of the Treasury. 
APPENDIX 

STATISTICAL TABLES 

55 
REPORT OF COMMISSIONER 

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REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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60 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER 

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0 1 4emo0 pe8 ou

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 gggg

c81 

-teg-a 

g

ggSgaggggglEnUERgg 

288g88228848488888888482 . ---t fr.lefrageg g. ..4- a' 471,4 0. t cslar 

Nts

kitri 

iW 

PtFolm A 002 

4 

n 

00a§' 

ace 

og 

nn 

• 

x4 

28 

. g 

2 

it :=1 

894846 

... 

4 

g 

aa 

.8 

gE4 

22 

ga go E 

:n;15 

-08a.186 

grigag 

gil 

42 

1 

8 

g 

4 

g g gg 

28 

Nit g., 

-skaolg t8:6:0A m am a 1 ,6-q- 

- 

Uggl 

34412 

g a 

?: 

2 

a 

ra 

4 

is:gg 

444 

nag 

8.528 3282 . 84 

lag

-gg .60fe.f +0 

,:4 

88 8 . 

4°,4 V

POS 4 84° mol4e 

-q.sis -1 

4488822428848M536428828

4 5828

4 84284 24 

g“ggiggiggaggggRa nggrn

0FIRREgRiE 

g812g886 88g4ggrg9Iggragg98

g8.486

g5 

...8 :Tem mm.cm..... 8-m 

_ .m. r... m m - 

..mm cs 

71!. v

s32;2 

.4.5 I a gi 1 . , o 

-el 

ggugglqgrigggggggggiiqggiggE

lAlgratjg0g:.tgOnagggnOgqa ggg agn: 

2848247:88886488888344888444286485482 

4 . ,.. _ . __ . 

Collectiondistricts 

egm .4, 

.11.'4,1543 

14092 

2.° o4 

1 

/ 

t 1 

'CZ ge

l'aVal t ; 

461174,.,z44ww4 

- 

la 

gB 

i 4

It 

1 

A 

a 

g 

0 

6 

I 

n 

z5. 

w 

g4 

.gs 

411P914

iotzs 

IMA 

Si 

a 

aaa.xzzza..zka 

Avt 

Prgb' 

1...ei4 41 4 

41 

o 
gr8g3 g88iggagg3ggWg611

ilgggggUggg05g0Pagggggg

48=i483Eaa'242886 W42gAgtrn

88 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

t

ig 

°14 

s2 

ta, 

a 

2.,14:48MTREWZEMSlazar,ms66. 61 es 

gaMag5;450IggiaglIgaggggglOg

MUCAggiVggalbIggrigggiringra 

r 

gaegge4eeeaag-ezzeeeeaggg4ageae aeg Li 

"'flat 

at 

 "'flat 

44Etzl 

logggE. 

E. UV 

gaagg4eeeeaage4'eaeeaflth:FEseaa aeg Li 

gaggiragigggitsiggEggggggv4iglEgg 

tiggflgatiggggagildrOlggggalgAggl 

?AgagSaARagg8E4U;RWaStsg",>88%8g8PnEg 

7. 

;g 

g a-gg 

qitr,„ a 

mtpE.0 

4E1;411 

1! °).`-le;j 4. "..81q -Ei gagl.a.. 

ggggniglIggag

ritagiUggEggiggElgiggggigAgg ag

gEigggIgggigg iglaWg 

- MM a a4ea a" - a of 

1 4i-2- 

0 a0a.-a 

5

`Ingo: 

&an 

ea,Se.... PA - ..2 

gagan4gOada

84NEX4SREE882PCAMEgs282RESTR2A84a4ZE 

ceinglaWW0 

agaMiiggilOggggOgrMgtgagg 

gaaggazzeewagetteeeagglaareaa aeg 4 

0 .18 .1 1 8.18

Total carriers 

taxes 

19ATZT,IT828t.'8R. E8gEE488g===ate 

WAWAFAMligngeiggangtdra 

re^i ngli aggIFITtifillitgKgqr"4" 

e aa 4 ,E.- 4a gaae e e a 

Railroad employees' representa- tives' tax, 

percent of the taxablecompensation 

a

gL.5gg8R48 

4 gr i2";" g

PatlaT 

4 g4 U: 

4 4 

c4-: 

taa 

4

'OF."4,O,2 

glii g 

'2 

q ° 

Eg 8 

Railroad employ- mentcompensation, 8 percent 

of thetaxable compensation 

'4?.888g22Eg88:724884=1,1 282E8VT.T ,44Er2A4 

• 

rgggg W

OgannialMangantgOVOn 

48Mggggg44511gLigIgg""rc 

e aa , ea eaae e 4 a 

Collection districts 

ilAt 

 .4.4:.sn 

Oilo ttt 11 

To 

opW.oloW.alSa.wup=4M..razzzi;74 z 

I 

Q 

t 

g 

'.2 

o rgWlet aae'aaha_zil.iflngit 

gglaMcgxligt$: 

;Non 

0

'as 

„ 

gl'et 

M 

' 

tat 

groi 

r' 

rt 

4 

REPORT OF COMMISSIONER 

8V..4OSIaflega - A8683822gtor.:A

.

naiggiaggENtigHAE4EME412,

4

8

4fleag 2feegeegegea egeaaeee

ggqgg1560MIgggggigglag

g 5toi882P.82;P-8288I3P,8TE244V

OflalWra4er1FX.AgFAFAMIn

-

Iiiti4451 6MAIVICaUggEr

7

84883 g3 488V4 2M=T2WZMW4F-1 2

ggrAt5MaRaMOSIngggf

„7

ggIgggg4ggaggEgggg4ggag

.4F$e.2;'s :ieegeegeg4a mm eaaee . -e

gE aR28238A8,A$O828:aggiSPWa8gE5

... 

lalfgg'Wgggrargiggiggg5*

giaggraggg.IMEgEngRgHggnOg

, 

Ho'

M4 

:12 8n 2 482g38ta8MOP,8g3828 r 1acta

4:14

igggRiErlggglEENEMEggMg

7Igg4grigggirg°1:ggggg4g

ee a e e MM 4 

8.;-2alaggc%- 4 

414"*P4 

e a 

RIZ. 

1 

-. 

1 

cA 

0 

>ito z..g. 

.

.2 ,>-1Z„,-a_ po c,t,' oH 5" SB ;HEEAd 0 2o.o 

'IiNikaghilealin i 540

31.00'->4.amin.6,...rtg,==,,,

., 

g4oWs00.aari244 00 ..b5StEd- cnE.44-.E-zzr..E-uwoowa.egoSetE4..:03 

imm-41---7 
90 

REPORT OF COMMISSIONREPORT OF COMMISSIONER OF INTERNAL. REVENUE 

Si 

S 

0 

06' 

Oa

‘q- 

,. 

ig 

z 

=&.,... . „4„._.N. a........„..._ 

EEEFEEEE

MEEIEWein. FERERFUEEEEig 

NEMIRIRIEtEgWEI 0151NIOEPIANNI 

e4gagr-Lrae----

---g.,:f dgr,siiow

6=ig,-- .. . - -,., ' . 

,c1 

n tt 

02et M

49g02 g4 

Pilq 

69 

g 

0.

I 85

R88 

„?, ER 

CO 48 

g:Eg liErg;m' 

gE8 5R82848 

.4, .. 

4 Rg 1 ,-, 

igel Se pa lla llea l a ia an

II; H

.gg 

'5.82 

z 

4-r-pmeeg4-1, 

EggERENEEREIRRINIEgi NIgENEURREEE 

828R84488Rg84884424R g8R88884824ggg 

flr ,oNg-tg-:;--.igra 

an..., 

cP

::4.-44 

4A ,X.pi i g 13' 

F'6.- 

air 

alga 

28RA 

N g 

g 5 

a 

v-- 

.t-os 

IEE 

ER8 

,

igN 

gE4 ri . - . 

.4, 

EN 

gg 

igi

245R 

a 

4 . .,,4 

Sec.701, Revenue Act of 1932, 

asamended 

Lease d Wires, 

etc., 5 percent 

2

884888g `2.".5ggg 14 .. 

''

4 

e 

', 

4

!APE 

!WM 

, . 

” 

S FIE—E

4Ig24S 

. 

:14g 

-. 

R 

ER 

88 

4 

E' 

SR 

Telegraph. telephone, 

cable,and 

radio messages 

8ggg44444g3884184R4 a5537., E5554456- 

E"gPEE EP'ELEFIgggg EgErEg'Eg 

EEEEEEEEEEEEEEMERE IHEREREEiEEE —E' 

— 

. . 

g5A 

PE 

agt.;.. 

.6 

EEE 

ag 

RAM 

. . 

REIEE 

48244 

Na gEK . 

E 

g 

g 

gi 

4 

4 

R 

g 

5 

..a 

§EE 

EIE 

245 

i 

, 

Bituminous Coal 'Act of 

1937 

Of thevalue 

of disposals bynoncode 

mines, 1915 

percent 

I 

.. 

R 

g 

,; 

S 

n 

4 

44g458 

8'4=48 

..— EF 

 

!=-, 

8 S Eg 

Per ton,1 

cent 

no

3ggg 

- 

5 

. - . g 

E 

 . . 

84 

:2 

588',1288 

AHEM 

flgggii 5 12414 

EEEE 

8.88g 

54°

1E5 

2gg 

6 

Collectiondistricts 

lAiu° 

 e§ln 

.0.7, :, r2,71 

.E., 

Citoesscetaax 

Agiieaie4 

= 

eA 

4 

g lAeliElh 

9 

,e. 

a 

t 

g0hLc3HPArnl 4.75 $01 4.° 

4 

0, 

2pri5zzz;77,, 

..- 

.20,n

m 

1 II

ca,„ licq 

a>.t, 

IZZ: 

) 

• 

ro 

ss 

O 

8 

2 

ggi

444RE8884g842g8485828g4488

, g,IggF ffiRglggt.jgonnic

4Ei5ggrgr;WWW-I'4

Igagg110165W1gE5

5ts'4

7 

g5grOg 

Egg8828 52428g:: 

lg5E4 

r2lang 

R'n° 

N p 

ggttgg

gggagnEgflggEggatilgg

85284584454844454845424482

s gggg';:°4"-ti-4

- 

;1?4 .

48854514:4842445;4 4 t41g.741 04gggt 4 gg 

ag 4552:4524RW:42.% 

82 

re'W ego; 

EgiEtEREEE 

4E8484884 

771E 

4g2Fa55cv4

3516g

il 

e>1 

'4 0 

M0w 401 

Tip?,AZ...R.1 ZO 

A4wpso ., 

.,,Z 

1

4 

,-.0,clvSS 

1724 . .

.tB li

3 f.Thi. 04 §44a5,.1,4,p 4..

fr.teitwasAgvg 

*qd1=1 

01

Zt,h1 z to p. .Ey, 0 5

4440.08.40

, gte:95-Eggg-er

4

Wg.6.4)0tttg>1482Fcg200 0.-f

raegger5o8gE-,Ewg uME.4 ■ 

C0 

CO 

V 

248 

eff 

R8 

a 

8 

0001 

454 
EggC8tirAtigg5AAdOgNggaig.1

.,..,..m,..mccgem......,,moem.c

282.-42`.!."4,7)928631.3A88?A82;^p2A3A

ti..;:egdV.Vgg'

agMaagagagggrat

UggallgagUggWAMAnt

saAtsict°41Atfl

M2',T.AAVGARP:R=4:22892288

garKg gtic‘gteszta.

g5WOMIUMIgilgaig5

OggrAlaWInggagMagli

6 :Iggrg

mmo0c7W10b,-i ■ oPeOCCO.>00WMC0=.1

3ggg2M4g.ig22q42g6gn 'H8fl2 

3it'S 4st:IG

Mgrekagglialagggag

gOgggROMElaninggggra

824MA2.ti888492228W4AC2

6.6 °:tfc6.agtiaa:ia'64

01AgAflr, A=4,72%2=ggR1382

ril5g5VAMMWAgraggE

giggIggragaggagggiagl

.i-ge4F. :1,; e1W6'644r;a r..:" r 

eeecqmt-pe».00oe

AAng4P-3AAggggAk4gA7.481 ggt=

%°84.18M252A:n.flAS607,11-04

,1°'gli gt.'"gtect:fg 

AlWanlaildgataigdag 

tiEMIMMIVAPtigaiME

c..fdt4c6ag.:15°'

?A2VoRtzri.E2Pfl",t4=ZAV,AMCinA

'..=4WFIE4

nOtalflVaiVaglid 

10n44g.510515g

, ti‘1- gtego;,47j4ctisoi tzt.7 ;djos.- 

,,,s 0 . 

erge 

ggtE- v 

.gv" 

t., U A 

.4.m0r.0E.000.,..aataa4;54E... 

. 

= m..-tav,gts4tee 

A4g3tt.st-0.. 

..ga 

tlo 

... 

- 

. 

=e: 

(4.r 

4

-zet. 

.sA) 

4§14

r,., 

°=41 

.0 6 ,. 

.bboAfm,1.400,-ogiut 

.0 

_t 

.. 

m6sgEtelmaa-ge28swemm

...zzE.R.c‘ioc.E.E.gga.wooalw

_ ,.P. .0gt 

12 

:s 

,s 

A 

pAii,„ 

s 

.40,,..„z_gw.

-..sg 

sho 

.g 

92 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIONE

It i417 ;;;;;Z:issaana0tal-aa saa.a..;:s4a= R 

Total income taxes 

Ito' 

8E'AnS884:4A22g8r,A't2EAti4A:t- gE*, g 2 gR 18 g=? .cg 

2--a90;Aaa--iina00mt.egro-fit-2-

EUERREATREAREEEtEiRERRREERAREAAREIA A 

ERRREARREMEAARRRREARERHEatRWRE 2 

.-arn IA 

0461 

A,LW:GA4AASL--ASAt;z01 ProAStBASAt28ASg 222 

si-r-taa.sana-asoaaga-0t----zg

REAREEREREEMAAAER3E5t3NMPEARIR3 

ARRER HAEtAtAVARRRAAWAtEREE32g3 1 

-as ar 

l ipn pin n is

t --0-0:---::------------------- - -- ---- 

VaTi T A4814A.SAAcmg4.7.4=4423AZI3461247.A A 

4tg!E 1161 

R4071,V.-A6-SAN.4:18AS:82Eg4ARAZANS227,Wfl A 

ye-Ma-ttar-t0t---0-;taa-a-----aa-al a 

RERA0itAtAEARRE2"SEW3ERERE80EURAF2 5 

E8EARtERPARE5R3MRARAMEAEERRER2ET 3 

- 

0161 

2-.w4„aa.,,,.ri ieRrio0c0g.117.-.07NcicormR2 

tEflARtARRAtERIAARERFAHREiREERHAg E 

EinFEERAERAREEER3EM-ARERRRIMAFERE A 

828288fl.54A0-,AratASS8888 8 8 

Corporation 

ttgs 

ittr =

OM,+ ■ 000=0WW,m0.0.040mmte.c0=c11,mN000com, I-- 

gggggggt:ggggggg4ggggfl'I 4g gggn g 

1161 

......e.f......,,a.N..w.R........a Re % 

UERMARRAEAREE3tArRalcIalati.a2a2sTat R 

AWARRRUEARR3E4R3ARtRtaa=REEREaRAEA Rm 

1.7.:111Ar..t8?ANgAct-M2ARAMIAALW2AR4A22AA 

,» . .4 cl . 

0661 

EtliERMWAEREAREEEAREARAR9REEIR5 

EARAFAAHRREEEEAREERER3NERRRitttRE3R t 

AA4iM38SR2AA42AP4gAA2,N1:222124e8882288 a 

ra 6, 

g

a 2 4t1", r, ,l 

., 

L . a 

a

tp 

> a 8 ? 224 4.0 :g O rA 

g4 e.4410, wmotE.a 4zammaitogc, 

Hm Z V,Z14.4.60. ys);., 

4 -, 

• 

J. A111.6 4 1-,11 

Collection districts 

. 

gill c" r!, tea' '',e. 11 1111WnvIZZZAXv 

.4.gaa..16(10tAots4s4 w42tfltta8Wa,71sa F 

a. 

il 

a , it 

o 3esaiitglttt eltItatt.'90.-=!tagogg 1 

ko, t'or8kM- 4 oma ° 

kp.. il 

9 MO t 

. s 
gggi4g4g

G......—,...a,,,o0.0,...,....0.

ratAgflugAlggiig rit zig.

Eganilgangt7a104Wigtqgg 

S28.84=2g8g8Wc112$4a0Et5g22 

WgilaggitalaiMtielf 

gtgagggogivil lintigg6-i 

8gafli427t88cr8elAti:M?8ngtVa

VaEg4 WgragOggragnOg 

g8rpg;;Egqav,:aggi.si4Aggt.i

WFIVOCIVIMIgailM 

■4 ta0 ,.04 N0InatOtonc0Nt, 0e0[■ WM 

~°°.'^ ^wti mmwom 

%°. 1 681.1 52948R382V*3228234 

t.: :i4ggiggaggicitgagglagg 

WEiagggngnitigrAM41 

Fi,t !fe.sgegfrg 7ig..6,4- ceal,s 

283t28.232F48228.35'2222t-085288 

.tFlaggaligkaiggilUtagg 

MOVA044§1Maggagneti 

:4-s; ,,,t.t4ge-ilott tz.7,eta.-4- 

"

......,................

1:".-74 r;ggg 4 g0g,Vg'g'

clq

lagliganigtOWItigi 

IllgalagagOggngWagthlg 

252858'888'gfl21:5288289.49852

.riL:00-‘,44g-Atg:=3,1 TirsigReip7sg-, 

dtg saegg.svgisa $g.-&-P rea 

OgglatnggigillMiggaii 

gfl050:10115V4WW0gg 

Am=.fletsigztt:smigng;gm 

O 

01§1*-2 g,

1P40 

Zel 

0 

1a 

oj 04 

0 40 

O ..,ILi2.vi eftet0o2 g g.. 

- 

9 

P 

.. 

a

> 

,■ °4' 

i 

82 

A 

hith..g.7,1llikapiggea 

7'. 7 0 

440104 

2 

044.g 

0 

REPORT OF COMMISSIONE

94 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

0 

y 

0 

rn 

O 

a 

ti 

co 

e) 

0'T

...:4 

g=4.1.4g:LiggFogggg-Aggn..„:iggggiti-inng 

82282821299?28892324M822282258°832888322 

 glUnigtaWailitillW.a l gflgaggagi4 

alffl88g2228258aW853 2°ag8584M521 

,,,,4. 9e4,,,,,,,,a,,,gr ,g4ag4a,, q.,gg5 

a -Na-za--- --aa,-,-- 

ti-c.6

galatigEIMAIMMIME1401540 

fliMgarAgglalktaagaggSFRA 

52238322993288? 388238282528282822833828 

. gigan tiga-ttiWgtagaittigeg•regrgi r 

E4 

^ .001001c0.0 ,0.DNot=sP 4 M 0,00,0.041--‘0.0 WM 000,.>=Nfl-so0 

L.,LvA .i.sntle4.572.,106 4.icia6 t6 c6 

2V.:42g2M22f5.T.M7382WR222X=e48-42amo2P4fl 

gawggieseea-r

tagiflIMIWAgganalglIgagg 

VOMIERggattaggtigritilflga50 

igggrge-74.: etit-g t,igg.4 

.7,'22P.-Zra2EtTaggZ4828P,A8S ,22 W=MNSgtz 4 MtztDR 84 

 anlatradaggt5.4g611WAggang : 

gs s.t,,r6eg,:.t.-tset.:06,6fledacdiece-rgg . SMS'Etr8nt;fl.R ■24c,g58:fl.88g:oafl, ;■ ..SW2t-.R 5 t6 

g-r-4 .6.6.4. 5deactirtdgo ,4r: c4- 4g c4 gra:3 

.........,....-......i............i, 

mhthtactiMeui 'toi,-;ci ' m:goitZ 'o6gMM.446A w3oiceoia■ - 

mim

Z m mg.Ammeemgg amam pa m.. 6Rc,..t-ma 

i 1 

2.e.9222328428.7487.1428382883272 3829 22422 

a

tgliggrainEMEMOMMEFAHRO1 

Woga0100M-AgOgAMOVAM50ggr4U 

,c1,1:2.6g&w.-74gFIRsggQ54,4;waoi-i- sr,74g-rggtio, ..... 

882%22S;Z8834223,741825:8852rog8 9229,888 

d-rat.ftir. 

gialiggagaggirtlagaVfliVA 

itigMaillgOlaMaggnillOg§§11g0 

w gegetig‘'ezT.tite e6-54-,1E, 

4rf 

e mu 

....,,m,,MPacmaade.w 

iltirA.-2oi4t-4.4 

,4 

 =,d 

r, g 

 ggioa 

g..14:4 a3aaa 

1.-i 

vA g 

a 

,,.. 

- 

..1 114Ztzl 

aNZaa4a.r4 

gqi

z 

p,>, 

HE 

flq.4q131 

.-.g0-is' 

'0 ,%1 

tt; 

V.: 
8W4=5;1: 42858 1 8 

TOIV! t

HERnOg§n 

g7458E.;222?.?. 

4 v, 

8:2;c7 :i8E8c.8 

ossi.4 Maga 

ftragnAl 

t;!88888388 

rse. - 41- 

74R8888g8:: 1

828gngii

889299.88 

Ige-n. 

ggiggaigg 

EHERgiLiii 

U8KgAAM2888 

, s 

gg.44. 

flagig4 

AitagsVg 

8.74 2 

t.flgis-111Ar 

?§M§§§§ 

eim; "4,4,44 

<124'8817.'384 

40° 

0.5 t'A 

Ilene El 

agr 'Mat 

csi 

eq 

8 

8 3, 962, 028,369. 06 

8 

96 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER 

O 

.0 

'TS 

1r, 

ea 

6 

a 

V 

CS 

g 

k

4 

ro 

E-1 

A 

4 

S 

a 

a 

00 

t3 

0

...Agt1 ,H;i 

f)-stq, 

p.i a.524, .

d "d 

888:-.88822.g88.4828NETLW:U=887.Z8E,78867 

•.4.-; ' • ' .6ei • •c4 •.4it6.4 'M• • • •oi ti •.i.4 •.3 • • • 

Totalinternalrevenuecollections 3 

gE2W8A8E8F1?84:1X228889.828882EgV888822V8882 

MarlggaletggVangclaangigneitilagAg 

iregivsmidatetvg0:4-gwg‘geWgrpripti. 

linatiligaVagOgiaggggarltidEll 

4. Og l 

4047 ' 

88:ES88818=8ZP-288gE88g8P4888284A88r5g8 

Employment taxes,including carrierstaxes 

ga

84TW8gE888888788080E8Z8288;183848848288 

icaggOOM81005FLOCIMOgagagaagig 

i 

glatgggigiagnaaggiOgigareagOgggiang 

aans•aea.4.-riagg4ack-w ofg g7.r ge.64.6- r; 

'a ti a 

41g.1 

nag 

14Ligg 

88EttMear.14,7121488E82F18;8888:18888M8E874 8;tiZg 

a ' •4 *.-■ • • • • •,:a • d.4 '444 • •.4 • • •ni •L4.,:id • • 

Miscellaneous 

internal-revenue 

collections 

E8888g883828E888884:74:89814. ;:88g 14888899822 

i 

51415551:1MMTWWWitigiagglaag 

RifAMOgggelggrAgEtRIMMagragfIgn 

 -,,g4g ail- r,,ge,- gaeci.g.,wg_14 Iiit4 , 

g

2

tag 

ni 

00 

,-., 8 

4898,T4228E8588.9,1:8E7t4R82=8:=4E8M7422884g88 

d ' • •4 •cid •.4 • • 'ca.: • - • - '.44d.: •4 • ' ' '4 'r •ce ' '06 ' 6 ' Income(includ- ingemessP roilts) taxcollections 

27gRE88W492:UM:A88g8F8=grag888 2L'808.74828 

ggtgi AMMIOMMUcti gMOVAI MPAgang 

gadagIgnggigaggg&gig5a1Vgaggrag4E; 

:ti aieert440g8s144.7.pgg.e.gt0444.6fligaVqgsa 

8

442.5 

-AR gi 

N'223 

VaggEgg2888418,R8g8gg'4E8AL"SZ8n8a8288r9.41 gE433-8 

a ".

- rs •,-; • .4a • '44.4,44-4 •ae644-44 '.4 • '4 •64 'd.: •c: '.4 • 

 '' 

§§§§§§§§§§§§§§§§§§§§§§§§§§E§§§§§§§§§§§§§§§ 

i 

of 

015100011Migiriaggiglligailn 

.:.6.:.:-7.6 iz.e.sw-r ,44.6worci sr ..Jr i csa-rci. .4- _. i 

as 440 i 

PE Phi 

g

1 11 q ' ga = a c)2° $7, o d.up 0up a a

g

4

.go A m i. .. -8..m.- De.,,,, an 2 . it, q,aii1§-5 8gegr168 ma.,, °Zr - -74.U088Abi 7,84.9wg4= fla° AWO'oop.acU .

Statesand Territories 

Alabama Alaska Arizona Arkansas 

California Colorado Connecticut Delaware District of Columbia Florida 

Georgia Hawaii 

Idaho Illinois Indiana Iowa 

Kansas Louisiana Maine Maryland Massachusetts 

Michigan Minnesota 

Mississippi Missouri 

Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota 

Ohio Oklahoma_ Oregon Pennsylvania Rhode Island South Carolina South Dakota 
98 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF. COMMISSIONE

December $262, 932, 408. 11 160363,283. 16 331 ' 96Z69 ' 1 ' LE696 1 n136 9 ' 800 ' 08345429, 274,502. 43 

528 224823R 582L-82 5 

ga 4050fl ggA g

E-! 35 g 

gfg Liggg4',1 4g 4g 41 4g4 g 

64, 219, 138. 07 

0961 

November 

Pt, 622,581. 47 

15, 801, 197. 13 

47, 423,778. 60 

909 98' 8 .10'

948 ' 699 ' 06

'89 '228 963 ' 99

522 545322 nsnn nn 

ggg gggggg rig gg g 

054 igg=ig°6:: 44 14 g 

1 -t, 

4 ag 

1 8 0931 ,34 ' 2 , ' 22

1, 297,379. 60 

10, 913. 48 

1,854. 17 

46, 515, 49 

51 5, 792. 40 

4, 632, 606. 87 

107, 022. 70 

October 

$32, 136, 043. 77 

12, 078, 684. 00 

49,214,727. 77 

309 ' 08E ' EL

, 132 9 3 90 96'

45, 742,51 4. 50 

224 22848£2 E843 82 n 

wag ggIggg 0°18 51 g 

ggi 05ggg 4 4g 54,g 

aga ni ..7:4 a a 

m 

te 

• 73, 714,394. 78 

s o ld qme te

9250, 187, 333. 31 

175, 316, 771. 98 

924 ' 4091' 29 ' 63

4, 31 1,690. 14 

1, 287, 071. 90 

431, 102,767. 33 

888 55A42F444 82 2 

g14 giagng5 t

e en 15 g 

50 figgg 

8 C gg .4 

44 aea a 

.. . . 

s 'z' 832 89.1' 53 

1, 177, 939. 34 

8, 187.85 

293. 31 

48, 391, 936. 35 

512, 886.16 

4, 658, 532. 56 

103,507. 13 

f 1 n 4112 4

$25, 178, 096. 85 10, 297,236. 17 

35, 475, 333. 02 

799, 462. 45 

1, 012, 968.12 

2 2 Z ' N ' '59.1 69 

g5g 445

041 g5$100 140 04 4 

222 R22gR8 2858 25 2 554 g 11 g4 g 

gg- .4g 

a ...0 gaTi 

67, 978, 163. 61 

1, 153, 848. 81 

8, 596. 28 

888, 27 

51, 479, 666. 69 

525, 184. 27 

4, 668,202. 54 

121,019. 58 

r std

$32,117,194. 33 

12 834,997. 42 

44, 952, 191. 75 

038 . 409 ' 04

6.1 '0 111 93'

48, 662, 807. 40 I . ggg agggg U. gl 3F,

ggg gaga gggg gg g 

522 RMRSSM 52244 flg 8 

r 

44 '444 

M ..; 

IL 3326 799 89 

1, 101,632. 29 

10, 007. 7 1 

1, 114. 23 

51, 7 16, 341. 60 

556, 455. 88 

4, 723, 810. 84 165, 503. 46 

g eorno

.Ttilo 

il 

I. 

8E 

1=2"

”P 

in )" 

3 

gic3 

g 

h 

'' 

1 

g 

. 4t 

.14 

 Ir.d 41. a

"8 

D 

woo 

II! 

V8m 

.ge„ 

/cg 

 E

. 2 § allg) 

g 

?, 49m 

t 

mP &An.; 

Ca 

27,4.2flAP55ogg 

mm 

kg 

Oil 

. Ct;5 

i'417

Kral 

2ii 

G-iird. 

8 

d a§ 

gitillS 

4 

2 

o 

g2TS 

8 

rd 

be .z 

°O 

l'-'glsrag="15 ;."11 

 i:nE;PAIIMPAg 

°a 

i i -1 2 ci = 

A 1 

g 2 

-5, i g ..._ig 

ET.: 

i2V.: 1 "2..t.... 212 0R 2 ,

41,0E-c, E 

a vg;.2wo 

ongt1 ' it r22,,darkg 

2:0 

0..w'marcl== 

4flg ]'-' 

1,62 

mmoR M4M 

3 

g 

A 

Egg 

-rt.. '" 

g 1§2gut atig%gi 

OVUOmV.! Q. 

9,

11 4 

gl 

t 

ii 41 i

.81 

ti 

- 9 96' 1 LE '039 ' EL

1 50,332,113.10 

2, 161,266. 77 

1, 602,562. 75 

408,624. 82 

6,217. 45 

1 '9 1 '89 to az 

... gaggaga

gaggagga

2826855485E

... . -. 

9 1 ' 80 ' 18

36 91'

es ea ' Iv ' as '

1,650, 736. 75 

1, 088,567. 36 

905, 042. 66 

7,568. 63 

1 3,151,915. 40 

g 

gggaga 

SM24242:54g

gagagar

a

ageaaaa 

1 8 ' 141 ' 81

34 ' ZT

1 9 4831 ' 936 ' 31

1, 753, 663. 81 

947,693. 91 404,143. 37 

3, 046.52 

2 801' .164 ' 19'

eaaaagggaea

0g415g5gagt

R2RgR2R548R

R4222oc,R5 

co 

19 ' 09L ' 92

1 9 161 V TOO10

1, 398,843. 22 

695, 848.11 

280,612. 54 

5,319. 89 

 t 33190 8 ' 99

22V245M8484

aga a a 

545541064

ggftg4ggg5

22. 09 

3, 379, 095.01 

19 ' 956 ' .194 99'

1, 560,8 13. 90 

599,511. 13 

92. 99 

180,799.76 

4, 921. 65 

1 '3 tt O ' Et 080 

38584224252 

ggEg 6

ggflgg 

5444gg4W

eae aaa a . 

 1 106 ' 39892 

96 00'

1 59, 324.8 13. 36 

1,704,968. 67 

820,727.71 

1 29,751. 98 

1,164.93 

Z746,113. 29 

aaa -. 

4444g4gggr

Wri'aF4A

22222287424

a 
100 

a imese soc

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

S .

4 

P.4g 

F422 

-.. 

4 4 a 

0 

--; 

S 

16, 744,717. 59 

2, 892, 307. 3 1 

625,747. 06 

4, 686, 234. 90 

3 1 103 ' 3 SE

0461 

November 

£ 00'

299 690 ' 00' 'S 

83 ' LLI ' 60159 

87, 976,876. 64 

5, 871, 941. 00 

29, 140,431. 79 

551 686 ' ' 645E4 '

0 01 01 10(

722 FE 

1 ' 518 968 ' IT

.1 '2 B 'LL ra 

199 ' 1832

5 603' ' 98L69'

IL 18L' ME ' ' 96

77, 273, 213. 82 

September 

I, 555,277. 36 

583. 34 

17, 251,646. 59 

2, 558, 284. 42 

586, 517. 79 

8, 882,345. 20 

12, 027, 147. 41 

1 654, 622, 519. 88 

ir n isna

2, 013,959. 33 

1. 086. 05 

18, 695,873. 22 1 

90, 745, 866. 57 

6, 628, 018. 37 

1 23, 331,917. 22 

120, 705, 801. 16 

t Sin

1, 452. 751. 36 

1v78no 

I 61 too • 89 '0• as 

68, 226,374. 85 

4, 548, 129. 91 

518, 043. 95 

34 ' 565 ' 598 ' IL

9 :10 .11 00

Miscellaneous taxes—Continued. 

Marihuana Tax Act of 1937 

Coconut,etc.,oilsprocessed (sec. 6021/2, Revenue Act of 1934,as 

amended) 

Crudepetroleum processed,etc. (repealed July 1, 1 938) National Firearms Act 

Receipts from othermiscellaneoussources, includingrepealed taxes 

on alias,candy,jewelry,soft drinks,and dividends 

Total 

Employment taxes: 

Federal Insurance Contributions Act (2 percent of taxable wages). 

Federal Unemployment Tax Act (employment of 8 ormore) Carriers taxes (old-age benefits, 51/2 or 6 percent of taxable compensation) 

Total 

Grand total,all collections 

REPORT OF COMMISSIONE

it6i 

$470, 093,8250. 39 

311, 898,682,42 781,992, 311. 81 

3, 463,995. 33 

61,806,637. 90 

552, 589. 21 

I847,815, 534.25 

-..4 .12

.1,6 -za

.T., :R

gags ni

S a4.

w Sa

$102,683,623.si 

21,195,392. 98 

1 23, 879, 016. 52 

1,879,252. 84 

9, 297, 113,39 

442,375. 17 

135, 497, 757. 72 

gn ilVE

552 44

g gg rw 

ga eg

V 10d

$49, 101,143. 53 

18,621,721.75 

67, 722, 865. 28 

2, 323,621.09 3, 1 12, 737.49 

989, 438.15 

74, 198,662. 01 

g•71

424 82

.2 On4 

riag 5g- 

.t. 

ea 

., 

f is ifauti

$521, 871,596. 16 

569, 203, 145.84 

1, 091,074,742. 00 

5, &58, 166. 36 

89, 525,090. 67 

493, 061. 67 

11,186. 95 1, 060.70 

gg

Vg4 R88

j Fa

l 

ai Mgt 

44 

c44 

g te c na u fl

$35, 879,696.62 

84, 052, 007. 91 

611 1E6' EV SOL '

1,038,1 26.49 

528, 609.50 527, 175. 02 

1122, 025, 615.54 

ggg gm

422 28

:A.41 f

ga eg 

r ue Saun

$38, 184, 643.50 25,992, 005. 83 

49 1 ' '97 619 ES '

199 55 ' 4 05'

'SE .LL '8

096 ' '266ZL 

1_65, 837, 648.53 

Ai5 in

,488 445

1

AV igA

44 .4g 

f f no 4$3-

Qa

kwo al 

5.,.- 

14 

sp 

g',4 

•c4 

sr, 

d 

A) A 

.4 

, 4 

e4 bi`"4.1 

E, 

0 "pi .9 

8 

P 

r; 

o 

_,Ric: 

.w, 

4c, 

,$ 

tg. 

bg 

mac 

11-

go 

,11- 

4 

4 

4,4'4 

8 

4e, Pe 

...„ 0 (.5 

AG 

C 

E48 

To 

, 

.'442-ap4

...1q=.7, 

0 

rd 

a

V8 -'8:58 

p, 4.. &. , 

ia

gg 

.0

..„...,,

. 

4 zz

.,

o

g 

gg

aco

ee

t iltre

0 ,1.4.

■ 

% 

44

4

0 

O 

tO 

ro 

= 

V 

,a

tc> 

ck, 

tO 

. 

H

V 
8248288 Ag:.- AR A 

MIA 

EgggEEL giOi g 0. 8

Nel 

../... a 

I R 

8 A 

0 

a 0 ' 91 899 es 

3,158,214.10 

805, MO.10 

in. 

AI.FIE 

AA888 

. 

8 gflA g82 A 

A gangt

g 

 EFE g 

cvpg g a 

. 

tz zo ' t 061 ' L8 '

105, 884, 352. 33 

6,148, 133. 10 

Eff 

gkErd 

a86n2 

.0 

A FREIE E 

54 gnOS !: 

'‘A 28 

a 

1 

A f 

g 7, 

- 

I 61 ' 88'1 Z 'LS OS 

82, 999, 639.61 

3, 888, 994. 62 

%a! 

FERE/ 

8A7488 

f 

8 8A888 g 

MEE n 

4 

 A 

n n 

'"R 

g g 

8 8 

m 

22, 107,595.24 

2, 144, 673.76 1,325,644. 34 

Og 

IIAI.IF IMP R 

82A8A88 88Rgg 2 

Ag=8 n 

E .f 

2 2 

- 

1 9 3 ' 88 tt ' O ' 199

94, 704,753. 94 

40, 236, 952 63 

ROligR HEP 

2848222 88888 2 

F 

Ea - "E '? 

= a 

g 1 

8 

''' 

18,122,774. 90 I 

74,254,988. 61 25,152,277. 03 

O 

O 

Em ployment taxes: Federal Insurance Contributions Act (2 percent of taxablewages) Federal Unemployment TaxAct (employment of 8 ormore ) Carriers taxes(old-age benefits,5)9or6 percent of taxablecom

ti

) 

:41 

REPORT OF COMMISSIONE

102 ! KM

REPORT OF COMMISSIONER OF INTERNAL REVENUE $141, 934. 32 1,729. 65 1, 415. 13 'so ot l la so 1, 990, 487. 45 924, 852. 36 459, 350 33 3, 590. 00 3, 378, 280. 14 

40VAIVOM 

28A828228282 A "5" 

4g.f 

iglOgligg'g 

.e.re a 

10; 

A 

'19 'ose 91 106 

278. 625. 99 

5, 182,212. 87 2, 197, 2 18.12 

1, 261, 779. 92 

N SU

$137, 118. 84 2, 597. 47 

2, Mt 76 

3I9 ' 'LEIst 

1, 802, 31 8, 93 

944,877. 58 

555, 151. 31 

4.31 4. 29 

E ' 019 ' 399IT *

MRIRIf

APSMAg12288A 848 

AAIfRIRMg .Ti 

----FIC tftl. 

,..r,-;e44 of~ 

e, 

67, 370, 123. 27 

223, 114. 44 

8, 977, 288. 66 

2, 755,650. 68 

1,043. 231. 91 

h Eac

$11 1, 088. 84 

3, 405. 08 2, 4 17.21 

_ 9 8 ' 890ItZ 190'

1, 919, 762. 97 

1, 032, 808. 69 

561, 345. 30 

4 NO 58 

1 ' 819 ' 29419

gari0g 4

8g242884tAZ AAA 1.5gag WI 

IgggaggIrg P ' 

a4 a 

N .■ 

I EV ' 1312‘ EZ 

470, 763. 84 

7, 398, 199. 39 

2, 153, 387. 14 

990, 027. 06 

pl ficau

$94, 477. 95 

729. 47 

1,632. 15 

56, 701,457. 68 I. 

1, 851, 164.55 

801,296. 98 

442, 897. 53 

19A 00 

.80 L ' TN66

824882222A88 g% 

Oggggggal geg8). 

84g4ggglgt6 A:‘ 

cigdaa4 a 

I 57, 184,613. 90 

449,629. 87 

7, 405, 024. 25 3, 201,353. 46 

1,291, 550. 29 

fi qa una Zta

211 1, 0 17. 91 

1, 4 11. 48 

3,197. 33 

52, 577,566. 81 

1, 835,7 14. 78 

1,258, 206. 43 

434, 116.54 

t9 t 8130 ' 98 

9 1 011 TT 

8N

ngl

MA228A828 AAA 

gigOnigg 

- gg 

8-42111ggfifl " 

aga e ni 

48, 471, 008. 58 

411, 244. 96 

4, 159,847. 73 

1, 143, 500. 52 

928.313. 78 

r 111 4113111

$62, 875. 54 

1,

020. 0 1 

2,

533. 57 

59,139,002. 51 

2. 373, 261. 60 

1,559, 533. 91 

494, 800. 36 

6 ' 241.010t1

'1 .11 '7.

IgggigUgg'::: 

WggtilgOrO g 

g8288"=.8g8222 A 

A 

`- 

8,197. 33 

40, 879, 977. 34 

395, 452. 31 

4, 872,288. 1 5 2,391, 411. 35 01290A AS 

s corm

'4 

8v 

.8.8 

sg,4 

Lig 

lauIV 

6',1 

0.. Q 2 

art

1

6.0kf, 

8 

O 

a

Fm) ti 

...8 il

° 

IE 

eg :Jv 14) .tg 

g? .A 

: 

41 

1.- 5.1 . g 

,O 

g g--.9-3,il:T4 

 g

8■At --,;.,s.„ -TA uO 

ttSoloo 

- F4 

T 

EC

tri 

it 

" 

P 

t v 

a 

Apg 

i 1 

2 i 

,. 

. 

bg 

g 2 .°%E.g.ei

8 V 

gra 

8 

EiTitom2%V

. aE, 

,-, 

ban'Ed 

a'

5g 

OS 

.. 

 

.F.A.E.:4Ba.l

itutip 

r.,E:-.6,1c,r7]cdVito..c•;. 

Otmtig

2 algg 

tto 

g 

t 

5 

:g. 

PI-- g. 

02 

-mg 

-%. .-w. 

, 

2 

I 

4 

,., 

Q 

at 

go 

s7: 

;70' 

85 

Et 

2 

Ts 

ig 1g2 

t:e 

,Z,, 

4 

E 

75 

E -.t4i .8 O

.7.-r, 

g3c.9: 

ie.. ,g1 

A 

°ttaQ 

CI 

ki 1,,a 

r^A O

c'lEg. 

a 

5 m 

War, 

cqo,E. 

0 

r 

4", 

V 

03 

03 

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7 

c.> 

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V 

F 6

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E 

0 
104 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 5.—Summary of internal-revenue collections, years ended June 30, 1940 and 

1941, by sources 

Source 1940 1941 Increase or 

decrease (—) 

Income, excess-profits, and unjust enrichment 

taxes' 

Corporation income taxes 

Individual income taxes 

$1, 120, 581, 550, 75 

982, 017,376. 17 

1$1,851,987,990.58 

, 1,417,655,126.59 

$731, 406,939. 83 

435,637, 750.12 

Total income taxes 

Excess-profits taxes—declared value 

Excess-profits taxes—second Revenue Act of 

1940 

Unjust enrichment taxes (title HI, Revenue 

Act of 1936) 

Total 

Capital stock tax 

Estate tax 

Gift tax 

Liquor taxes: 

Distilled spirits (imported), excise tax 

Distilled spirits (domestic), excise tax 

Distilled spirits, rectification tax 

Still or sparkling wines, cordials, etc. (imported), excise tax_ 

Still or sparkling wines, cordials, etc. (domestic), excise tax 

Brandy used for fortifying sweet wines (repealed June 24, 1410) 

Rectifiers, retail and wholesale liquor dealers, 

manufacturers of stills (special taxes) 

Stamps for distilled spirits intended for export 

Stamps for distilled spirits bottled in bond. i _ 

Container stamps (Liquor Taxing Act of 1934) 

Floor taxes (levies on tax-paid stocks, inventories of Jan. 12, 1934, July 1, 1938, and July 1, 

1940) 

Fermented malt liquors 

Brewers, retail and wholesale dealers in fermented malt liquors (special taxes) 

Total 

Tobacco taxes: 

Cigars (large) 

Cigars (small) 

Cigarettes (large) 

Cigarettes (small) 

Snuff 

Tobacco, chewing and smoking 

Cigarette papers and tubes 

Leaf dealer penalties, etc 

Cigarette floor tax 

Total 

2,102, 598,926. 92 

18,474, 201. 83 

8, 536, 178. 32 

13,269,643,117.17 

128,076,284.66 

161,308,967.23 

9,095,561.51 

1, 167. 044, 190. 25 

9, 602, 082.83 

164,308,967. 91 

559,383. 19 

2, 129, 609, 307. 07 3,471,123,930.57 1,341, 514,623. 50 

132,738, 537.17 

330,886,048. 91 

29, 185, 118. 03 

2 166,652,639.88 

2 355,194,033.49 

s 51,853,719.03 

33, 914, 102. 71 

24, 307, 989. 58 

22, 678, 596.00 

27, 879, 052.19 

289, 857, 903.07 

11,854, 090.97 

649,925. 38 

7,410,006 71 

1,306,774. 20 

6, 287, 110. 46 

542. 50 

' 1,089, 230. 00 

10, 135, 132. 99 

12, 200. 32 

264, 579,036. 03 

3, 197, 151. 29 

s 34,889,895.90 

2 393,751,625.27 

13,460,559.79 

4 378,380.60 

4 11,045,066.02 

1,396,411.29 

2 7,971,666.43 

537.30 

1,039,267.64 

10,123,000.68 

25,304,050.09 

2 316,741,027.11 

2 3,954,695.21 

7, 015, 843.71 

103, 893, 722. 20 

1, 606, 463.82 

—271, 544.78 

3,635,059. 31 

89;637.09 

1,684,555.97 

—49, 962. 36 

—12, 132. 51 

25, 291, 849. 77 

52,161, 991. M 

757, 543. 92 

624, 253, 156. 11 820,056,178.33 195, 803, 022. 22' 

12, 897,763. 57 

97, 685.79 

16, 854. 96 

533, 042, 544. 34 

6,798, 556. 53 

54,383,802. 79 

1,279, 507. 90 

1, 727. 71 

13,400.527.60 

113,969.87 

2 12,059.83 

s 616,745,234.31 

6,899,820.62 

54,927,764.18 

1,431,315.35 

11,814.90 

4.534,384.21 

502, 764. 02 

16, 284. OS 

—4,795.13. 

83, 702, 689.97 

101. 264. 09 

543, 961. 39 

151,807. 45 

10,087. 19 

4, 534, 384.21 

608, 518, 443. 59 698,076,890.87 89, 558, 417. 28 

I Rates of taxes were increased by Revenue Act of 1940 and Second Revenue Act of 1940. 

2Rates of taxes were increased 10 percent by the Revenue Act of 1940, effective July 1 1940. 

Effective July 1, 1940, rates were increased from $2.25 to $3 per gallon and on brandy from $2 to $2.75 , 

 per gallon. Effective July 1, 1940. rates of taxes on wines were increased 20 percent. 

& Effective July 1, 1940, the rate of tax on fermented malt liquors was increased from $5 to $6 per barrel. 

4 Effective July 1, 1940. rates of taxes on cigarettes were increased from $3 to $3.25 per thousand on small. 

cigarettes and from $7.20 to $7.80 per thousand on large cigarettes. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 105 

TABLE 5.--Summary of internal-revenue collections, years ended June 30, 1940 and 

1941, by sources—Continued 

Source 1940 1941 Increase or 

decrease (—) 

Stamp taxes (title VIII, Revenue Act of 1926, as 

amended): 

Bonds of indebtedness, issues of capital stock, 

deeds of conveyance, etc $18, 145,227. 99 2 $22,072,503.40 $3,927,275.46 

Capital stock and similar interest sales or 

transfers 15, 527, 950. 19 2 12,176,496.92 —3,351,953.27 

Sales of produce (future delivery) (repealed 

July I, 1938) 92.99 92. 99 

Playing cards 9, 814, 430. 40 2 4,756,586.50 —57,843.90 

Silver bullion sales or transfers 193, 736.79 51,286.28 192,450. 51 

Total 38, 681, 345. 32 39,056,966.09 375, 620 77 

Manufacturers' excise taxes: 

Lubricating oils 31, 232, 589. 30 838,220,844.40 6, 988, 255. 10 

Gasoline 226, 186,669. 47 5343,021,269.39 116,834, 599. 92 

Tires and inner tubes 41, 555,488.81 Is 51,054,262.05 9,498, 773.24 

Automobile trucks 7, 866, 070. 51 "10,746,619.35 2,880, M8. 84 

Other automobiles and motorcycles 59, 351, 198. 09 n 81,402,519.06 22,051,320. 97 

Parts or accessories for automobiles 10, 629, 993.36 I 13,083,554.99 2, 453,561. 54 

Electrical energy 42, 338, 501. 94 52 47,021,015.62 5 682, 513, 68 

Radio sets, phonograph records, etc 6, 079, 914. 50 2 6,935,182.03 855, 267.53 

Mechanical refrigerators 9, 954, 398. 86 2 13,278,909.68 3, 324, 510. 82 

Firearms, shells and cartridges 3, 707, 843.68 2 5,535,773.25 1,827,929. 57 

Pistols and revolvers 89, 508. 54 2 85,301.13 —4, 207.41 

Toilet preparations (perfumes, cosmetics, etc.) 7, 712,483. 96 2 6,661,922.05 —1,050, 561.91 

Toilet preparations (dentifrices, toilet soap, 

etc.) (repealed July 1, 1938) 95, 242.33 21,611.17 —23, 631.16 

Matches, colored wooden stems 21, 848.81 95,140.82 73, 292.01 

Repealed taxes not listed above 315, 880.33 189,966.74 —125, 913.59 

Total 447, 087, 632.49 617,353,89151 170, 266, 259.16 

Miscellaneous taxes: 

Bituminous Coal Act of 1937 (effective June 21, 

1937) 4, 161, 663. 92 4,385.798.77 224, 134. 85 

Sugar Act of 1937 (effective Sept. 1, 1937)_ 68,145, 357.56 74,834,839.60 6, 689,482. 09 

Telegraph, telephone, radio, and cable facilities 26, 367,945. 02 27,331,113 61 963, 168. 59 

Transportation of oil by pipe line II, 510, 646. 54 22 12,480,585.65 969, 939.11 

Leases of safe-deposit boxes 1, 988, 933. 79 2 2,215,898.10 226, 964.31 

Admissions to theaters, concerts, cabarets, 

games etc 21,887,916. 00 42 70,963,094.06 49, 075, 178. 06 

Club dues and Initiation fees 6,334,908.82 2 6,582,649.28 247, 740. 46 

Adulterated butter, including special taxes 13, 275. 31 8,959.72 —4,320.59 

Renovated butter, including special taxes 7, 002.89 7,093.27 90.38 

Filled cheese 155.24 6,366.97 6, 211. 73 

Mixed flour 6, 241.83 7,208.10 966.27 

Oleomargarine— 

Colored 30, 758. 77 49,762.38 19,003. 61 

Uncolored 759, 463. 51 850,755.25 91, 291. 74 

Special taxes 1,223,377.75 1,221,195.09 —2, 182. 66 

Narcotics (opium, coca leaves, and special 

taxes) 605, 395. 66 684,197.90 78,802. 24 

Marihuana Tax Act of 1937 4, 702. 60 6,090.38 1,387. 78 

Coconut, etc., oils processed (sec. 6021/2, Rev -

enue Act of 1934, as amended) 22,744,354.47 23,185,936.03 441, 581.56 

Crude petroleum processed, etc. (repealed 

July 1, 1938) 555. 39 359.12 —196.27 

National Firearms Act 12,388. 68 15,897.50 3; 508. 82 

Receipts from other miscellaneous sources, Ineluding repealed taxes on checks, candy, 

jewelry, soft drinks, and dividends 166, 738. 83 35,876.60 —130,862.23 

Total 165, 971, 782. 58 224,873,672.38 58,901,889.80 

Employment taxes: 

Federal Insurance Contributions Act (2 percent of taxable wages) 605, 350, 175. 64 687, 327, 551. 09 81, 977, 375. 45 

Federal Unemployment Tax Act (employment of 8 or more) 106, 123, 156. 21 100,657,721. 18 —5,465, 434. 63 

2 Rates of taxes were increased 10 percent by the Revenue Act of 1940, effective July , 1940. 

2. Effective July 1, 1940, rates of taxes on capital stock transfers were increased approximately 20 percent. 

Effective July 1, 1940, tax on lubricating oil was increased from 4 cents psi/4201m to 41/2 cents. 

Effective July 1, 1940, tax on gasoline was increased from 1 cent per gallon to 11/2 cep s. 

' 5 Effective July 1, 1940, tax on tires was increased from 214 cents per pound to 219 cents and the tax on 

inner tubes increased from 4 to 91/2 cents per pound. 

II Effective July 1, 1940, the tax on automobile trucks was increased from 2 to 21/2 percent. 

is Effective July 1, 1940, the tax on automobiles and motorcycles was increased from 3 to 31/2 percent. 

22 Effective July 1, 1940, tax on electrical energy was increased from 3 to 31/2 percent. 

Effective July 1, 1940, tax on admissions was increased approximately 10 percent and amount of exemption lowered. taxing all admissions of 21 cents or more. 

22 Effective July 1, 1940, tax on transportation of oil by pipe line was increased from 4 to 41/2 percent. 

423348-44--8 
REPORT OF COMMISSIONER OF INTERNAL REVENUE 107 

TABLE 7.—Internal-revenue tax on manufactured products from Philippine Islands, 

fiscal years 1940 and 1941, by objects of taxation 

106 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 5.—Nutnntary of internal-revenue collections, years ended June 30, 1940 and 

1.941, by sources—Continued 

Source 1940 1941 Increase or 

decrease (—) 

Employment taxes—Continued. 

Carriers taxes (old-age benefits, 51i or 6 percent of taxable compensation) $122, 047, 843.86 $137, 871, 187. 71 $15, 823, 544.05 

Total 833, 520, 975.51 925, 856, 460.38 92.335, 484.87 

Grand total, all collections 5, 340, 452, 346.78 7, 370, 108, 377.86 2, 029, 656, 030.88 

Noce.—Collections for credit to trust accounts, included in the table above, were as follows: 

1940 1941 increase or 

decrease (—) 

Corporation Income tax (Alaska Railways)_ $2, 931. 19 $2,448.48 —$482.71 

Distilled spirits (domestic) 179, 316.37 179, 627.00 311. 69 

Distilled spirits rectification tax 4, 666.85 3, 374.09 —1, 292.76 

Wines (domestic) 52.78 9. 45 —43. 33 

Fermented malt liquors 4, 761. 24 4. 174. 48 —586.76 

Cigars (large) 443, 284.26 363, 622 96 —79, 661.30 

Cigarettes (large) 22.86 51.94 29. 08 

Cigarettes (small) 2, 356.47 891.91 —1, 464. 56 

Manufactured tobacco 9. 77 2.18 —7.61 

Coconut oil 17,046, 520.47 18, 022, 751.63 976, 231. 16 

Playing cards 102. 80 14.40 —88. 40 

Brandy 25.30 16.81 —8.49 

Sugar 117. 70 117. 70 

Total trust fund collections (included 

above) 17, 684, OW. 36 18, 577, 103.07 893,053. 71 

TABLE 8.—Total internal-revenue collections, years ended June 30, 1868 to 1941 

Year Amount Year Amount Year Amount i : ; 

illfillI - gggigg"M illiiral 

$41, 003, 192. 93 1890 $142, 594, 696.67 1917 $809, 393, 640.44 

116, 965, 578. 26 1891 146,035, 415.97 1918 3, 698, 955, 820.93 

210, 855,864. 53 1892 153, 857, 544. 35 1919 3, 850, 150, 078. 56 

310, 120,448. 13 1893 161, 004, 989.67 1920 5, 407, 580,251.81 

265, 064,938. 43 1894 147, 168, 449.70 1921 4, 695, 357, 061.95 

190, 374, 925.59 1895 143, 246. 077. 75 1922 3, 197, 451,083.00 

159, 124, 126. 86 1898 146, 830, 615. 66 tom 2, 621, 745, 227. 57 

184, 302, 828.34 1897 146, 619, 593.47 1924 2, 796, 179, 257.08 

143, 198, 322.10 1898 170, 866, 819.36 1025 2, 584, 140, 288.24 

130, 890, 096.90 1899 273, 484, 573.44 1926 2, 835, 999, 892.19 

113, 504,012. KO 1900 295, 316, 107. 57 1927 2,865, 683, 129. 91 

102, 191, 016.98 1901 306, 871, 669.42 1928 2, 790, 535, 537. 68 

110, 071, 515.00 1902 271, 867, 990. 25 1929 2, 939, 054, 375. 43 

116, 768. 096. 22 1903 230, 740, 925. 22 1930 3, 040, 145, 733. 17 

118, 549, 230. 25 1904 232, 903, 781. 06 1931 2, 428, 228, 754. 22 

110,654, 163. 37 1905 234, 187, 978.37 1932 1, 557, 729,042. 64 

113,449, 621. 38 1906 249, 102, 738. 00 1933 1, 619, 839,224.30 

123, 981, 916. 10 1907 269, 664, 022. 85 1934 2, 672,230, 194. 52 

135, n9,912. 30 1908 251, 665, 950.04 1935 3, 299, 435, 572. 18 

146, 523, 273. 72 1909 246, 212, 719. 22 1936 3, 620, W8, 381.09 

144, 563, 344. 88 1910 289, 957, 221.16 1937 4, 653, 195, 315.28 

121, 590,039. 83 1911 322, 526, 299. 73 1938 5, 658, 765, 314. 33 

112, 421, 121. 07 1912 321, 615,894. 69 1939 5, 181, 573, 952. 58 

116, 902, 889. 44 1913 344, 424, 453. 85 1940 5, 340, 452, 346.78 

118, 837, 301. 06 1914 380, 008, 893. 96 1941 7, 370, 108, 377. 66 

124, 326, 475. 32 1911 415, 681, 023.86 

130, 894, 434. 20 1910 512, 723, 287.77 Total__- 97,953, 675, 229.45 

I Period of 10 months, from Sept 1, 1862, the day on which the internal-revenue laws went into practical 

operation, to June 30, 1803. 

Articles taxed 1940 . 1941 Increase or 

decrease (—) 

Distilled spirits, excise tax $176, 878.05 $177, 096.32 $218. 27 

Brandy 4.80 8.98 2.18 

Distilled spirits, rectification tax 4, 319.68 3, 097.94 —1, 221.74 

Wines 1.13 .05 —1.08 

Fermented malt liquors 4, 761.24 4, 171. 24 —590.00 

Cigars. large: 

Class A 436,833. 66 356, 429.45 —80, 404.21 

Class B 345.79 634.88 289.09 

Class C 1, 607.33 1, 971. 64 902.79 

Class D 2, 831.89 825.99 —1, 994.11 

Class E 1, 831. 88 3,825.99 1, 994. 11 

Cigars, small 

Cigarettes, large 22.86 51.94 29.08 

Cigarettes. small 2, 356.47 891.91 —1, 484.56 

Manufactured tobacco 9. 77 2. 16 —7.61 

Playing cards 102.80 14.40 —88.40 

Total 631, 739. 25 548,955.90 —82,783.35 

Nom.—Under section 3343 of the Internal Revenue Code, the above receipts are covered into the Treasury 

of the United States to the credit of the treasurer of the Philippine Islands. The above amounts for the 

fiscal year 1941 are exclusive of defense tax collections which were covered into the Treasury of the United 

States. 

TABLE 8.—Internal-revenue tax on manufactured products from Puerto Rico, fiscal 

years 1940 and 1941, by objects of taxation 

Articles taxed 1940 1941 Increase or 

decrease (—) 

Distilled spirits, excise tax 

Distilled spirits, rectification tax 

Wines 

Fermented malt liquors 

Cigars, large: 

Class A 

Class B 

Class C 

Class D 

Cigarettes, large 

Cigarettes, small 

Sugar 

Total 

$2, 512, 145. 56 

251, 110. 01 

51.65 

5.00 

1, 972.81 

413.75 

2, 413. 75 

23. 10 

1,452.96 

12, 418.34 

$5, 522, 

412, 

1,

2,

1, 

11, 

546.67 

906.83 

11.24 

9.60 

484.66 

700. 50

225.20 

28.90 

038.96 

184. 94 

117.70 

$3, 010, 401.11 

161, 706.82 

—40.41 

4.60 

—488.14 

-70.05 

—164. 76 

4.0 

—414. 00 

—1, 117.70 

117.70 

2, 782, 361.72 5, 952, 275.30 3,169, 913.58 

Noxt—The above collections for the fiscal year 1941 include defense-tax collections levied under the 

Revenue Act of 1940 which were credited to the Treasurer of the United States. Stamp sales for Puerto 

Rican tobacco and liquor manufacturers, exclusive of defense-tax collections, are deposited at San Juan to 

the credit of the treasurer of Puerto Rico and consequently are not shown in other collection statements 

herein, except that liquor taxes amounting to $2,858.45 in 1940 and $2,947.06 in 1941 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). 
108 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 109 

INCOME TAX AUDIT 

TABLE R.-Additional income tax assessments on the Commissioner's and collectors' 

lists made during the fiscal year 1941, by tax years 

(a) TOTAL REGULAR AND JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1920 and prior 230 3288,867 546,411 $19, 773 3395,051 

1921 61 131, 525 9,174 5, 373 146,072 

1922 55 102,325 95, 518 59,355 257, 198 

1923 73 324,088 304,450 19,152 647, 690 

1924 79 311,556 289,253 27,860 628,669 

1925 104 542,970 478,444 40,854 1,062, 268 

1926 116 701, 888 574,587 84, 799 1, 361, 274 

1927 162 934, 772 700,652 111,633 1, 747, 057 

1928 177 1,078, 199 728, 661 182,021 1, 982 881 

1929 248 3, 091,964 1, 969, 316 161, 350 5, 222130 

1930 281 3, 733,633 2, 132 835 185, 132 6, 051, 800 

1931 302 1, 789, 367 898.272 102,840 2,790, 479 

1932 380 3, 514. 127 1, 568, 233 116,703 5,199, 113 

1933 578 6,007, 92A 2, 386, 561 293, 253 8,687, 742 

1934 1,468 8,785,072 2,979, 316, 412. 676 12, 177.061 

1935 2, 795 14, 379, 716 3,617,988 665,057 18,662, 781 

1936 7, 798 34, 768, 966 7,603, 529 799, 554 43, 172,049 

1937 20,239 40, 663, 181 6,605, 164 1,360,257 98, 628, 592 

1938 65, 696 43, 706, 878 4,401,338 518,414 48, 626, 630 

1939 132,204 50, 261, 05 2,571,561 292,387 53,125, 353 

1940 3, 564 2,126,035 15,386 10,056 2,151,477 

1941 2 1,579 1, 579 

Total 236, 610 217, 245, 541 40,016,689 5,468,499 262, 730, 729 

(0) TOTAL REGULAR ASSESSMENTS 

1920 and prior 

1921 

1922 

201 

34 

45 

$262,277 

11, 319 

33, 324 

$79,968 

8,895 

25,956 

$17, 594 

4, 673 

9, 561 

$358,839 

24,887 

68,341 

1923 84 318,645 304,450 17,843 640,938 

1924 68 306,748 284, 731 25,008 616,487 

1925 94 507,397 496,006 22,183 976,466 

1926 101 621, 161 507,536 27,744 1, 156,441 

1927 139 719,266 539, 569 85,367 1, 324, 202 

1928 157 945, 548 636, 771 120,830 1, 703,149 

1929 218 2, 956,926 1, 983, 578 87,896 4,928, 390 

1930 254 3, 621, 167 2, 068, 371 110,456 5, 799,994 

1931 280 1, 771, 108 888,562 91, 144 2,750,814 

1932 352 3,402, 651 1, 515, 930 90, 262 5,008,843 

1933 544 5, 648, 914 2, 239, 396 160,664 9,048,974 

1934 1, 389 8,233,440 2, 783, 2I9 268,737 11, 235,416 

1935 2, 675 13, 556, 218 3, 372, 249 488, 873 17,417,140 

1936 7,640 27, 627, 233 8, 074, 736 474,442 34, 176,411 

1937 20,029 37, 193,497 6,045.870 524,579 43, 763,946 

1938 65,459 41, 532, 756 4, 176, 399 313,344 46, 022, 499 

1939 131,983 49, 267,887 2, 526,492 105, 336 51,899,665 

1940 3,528 1, 696,920 13,564 2,513 1, 712, 997 

1941 1 12 12 

Total 235,255 200, 239,414 86,421,618 3, 028, 819 239,684,851 

TABLE 9.-Additional income tax assessments on the Commissioner's and collectors' 

lists made during the fiscal year 1941, by tax years-Continued 

(c) ASSESSMENTS ON AGREEMENT WITHOUT 90-DAY LETTER 

Items Tax Interest Penalty Total 

1920 and prior 

1921 

1922 

1923 

1924 

1925 

1926 

1927 

1923 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

Total 

154 

31 

40 

50 

53 

77 

81 

110 

122 

155 

185 

217 

242 

346 

811 

1, 595 

5,346 

16,847 

61,442 

130,373 

3, 522 

1 

$147,237 

9, 180 

20,121 

12,275 

17, 494 

77,085 

90,546 

103,875 

510,835 

1,056,605 

2,363,128 

1, 133, 959 

1, 774,911 

2 483, 354 

4, 482 518 

7,096,416 

12 225, 454 

27, 289, 254 

38,434, 809 

42240,024 

L 692 171 

12 

$35, 329 

6,524 

17,482 

5,148 

15,360 

67,658 

31, 559 

72, 552 

331,013 

675, 979 

1, 368, 811 

577, 977 

794,096 

1, 367,187 

1, 511, 205 

1, 949, 773 

3, 986, 954 

9,355, 121 

3, 831, 984 

2,464, 321 

13,451 

$15, 200 

3,095 

5,244 

3,789 

6,596 

9,889 

18,086 

20, 899 

34, 257 

48, 678 

62,850 

41, 983 

53,399 

82, 564 

141, 407 

175, 131 

334,646 

369,634 

198,087 

82,952 

2,513 

$197, 766 

18,799 

42,847 

21,212 

39,450 

154,632 

90, 191 

197, 326 

876,105 

1, 781, 262 

3, 794, 789 

1, 753.919 

2,622,406 

4,933,105 

6, 138,130 

9,221,320 

22, 547,054 

32,014,009 

42,464, 780 

50, 787, 297 

1, 709, 135 

12 

221,800 156, 215,263 23,479,384 1,710,899 181,405, 646 

(d) ASSESSMENTS ON AGREEMENT AND DEFAULT AFTER ISSUANCE 

OF 90-DAY LETTER 

1920 and prior 

r" """"'5.)112°.°.`:.' c',',47 7)E§lin° 

335,643 $6, 849 3419 $42,911 

1921 2,139 2,371 1,578 6,088 

1922 4.132 801 373 5,306 

1923 2,409 1, 910 1, 102 5,421 

1924 646 621 241 1,508 

1925 12,049 10, 513 6,259 28.821 

1926 2,884 2, 380 1, 873 7.137 

1927 21, 649 16,534 15, 509 53,692 

1928 28,843 20,292 13,982 63,117 

1929 13,365 8,599 5,082 27,046 

1930 35,440 18,866 9,882 64,188 

1931 5,419 2,837 2,134 10,390 

1932 58,931 27,372 7,590 93,893 

1933 117, 853 47,779 34, 915 - 200,547 

1934 1,091,043 366,369 90,184 1, 547, 596 

1935 2, 387, 101 437,218 268,935 3,093, 254 

1936 3, 690, 348 796,575 115, 442 4, 602, 365 

1937 4, 393, 233 728, 761 130, 061 5, 257,055 

1938 2, 596, 586 286,447 107, 857 2, 990, 890 

1939 930,851 55,001 22,260 1,008,112 

1940 3, 749 113 3, 862 

1941 

Total 9, 305 15, 438,313 2,838, 208 835,678 19, 113,199 
110 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 111 

TABLE 9.-Additional income tax assessments on the Commissioner's and collectors' 

lists made during the fiscal year 1941, by tax years-Continued 

(e) ASSESSMENTS BASED UPON STIPULATION BEFORE THE BOARD OF TAX APPEALS 

Items Tax Interest Penalty Total 

1920 and prior $12, 277 $5, 939 $1, 669 $19, 885 

1921 

1922 2. 366 591 2,957 

1923 268,765 262.168 898 531.831 

1924 254,301 236,355 1,927 492,583 

1925 397.897 350,809 3, 264 751,970 

1926 552, 218 452,541 3,778 1,008, 537 

1927 451,887 343,541 3,692 799,120 

1928 261,408 184,067 21,009 466.484 

1929 993,759 607,093 25, 132 1, 625, 984 

1930 902,642 491,691 30, 344 1, 424, 677 

1931 425,103 203,820 25,632 654,555 

1932 579,122 227,871 5,899 812,892 

1933 665.709 267, 710 40, 130 973,549 

1034 1, 488, 850 511,498 15, 418 2,015, 766 

1936 2, 757, 461 615,371 27,867 3, 400, 699 

1936 4, 413, 015 987,976 18,366 5, 419, 357 

1937 5, 010, 797 875. 392 16, 821 5, 903, 010 

1938 478, 108 55,064 7,234 540,406 

1939 96,638 7,094 124 103,856 

1940 

1941 

Total 2,764 20,012, 323 6.686, 000 249,795 26, 948, 118 

Or) ASSESSMENTS MADE AFTER DECISION BY THE BOARD OF TAX APPEALS 

1920 and prior $67, 120 $30,851 $306 $98.277 

1921 

1922 6,705 7.173 3,353 17. 231 

1923 35, 196 35,224 12, 054 82.479 

1924 34, 307 32, 395 16,244 82,946 

1925 20, 366 17.926 2, 751 41,043 

1926 25,513 25,056 4,007 50,576 

1927 141,855 106,942 25,267 274,064 

1928 144,462 101,399 51,582 297,443 

1929 893,197 591.907 8, 994 1, 494,098 

1930 319,957 189, 003 7, 380 516,340 

1931 206,627 103,928 21,395 331,950 

1932 989,687 466.591 23, 374 1, 479, 652 

1933 1, 381, 998 556, 720, 3,055 1, 941,773 

1934 1,168,029 394,167 ' 21,728 1,583,924 

1935 1, 315, 240 369,887 16,740 1, 701, 867 

1936 1, 298, 416 303, 231 5,988 1, 607, 635 

1937 495, 213 86,596 8,063 589, 872 

1938 23, 253 3.004 166 26, 423 

1939 374 26 400 

1940 

1991 

Total 1, 386 8, 567, 515 3. 418. 026 232,447 12, 217, 988 

(0) TOTAL JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1920 and prior $26,590 $7,493 $2,179 $36, 212 

1921 120,206 279 700 121, 185 

1922 69, 001 70, 082 49, 794 188, 857 

1923 5,443 1, 309 6, 752 

1924 4, 808 4, 522 2, 852 12, 182 

1925 35, 573 31, 538 18, 691 85, 802 

1926 80, 727 67, 051 57, 055 254, 833 

1927 215, 506 161,083 46,266 422,855 

1928 132, 651 91,890 61,191 285,732 

1929 134, 538 85, 738 73,464 293,740 

1930 112,466 64,464 74, 676 251,606 

1931 r 18,259 9,710 11, 696 39,665 

1932 111, 476 52, 353 26, 441 190, 270 

1933 359, 014 147, 165 132,589 638,768 

1934 551, 632 196, 077 143, 939 891,648 

1935 823,498 245, 739 176, 384 1, 215, 621 

1936 7, 141, 733 1, 528, 793 325,112 8,995, 638 

1937 3, 469, 684 559,284 835, 678 4,864, 646 

1938 2, 174, 122 224,939 205,070 2, 604, 131 

1939 993, 518 45, 119 187, 051 1, 225, 688 

1940 429, 115 1, 822 7, 543 438,480 

1941 1, 567 1,567 

Total 1,355 17,011,127 3,595,071 2,439 680 23,045,878 

TABLE 9.-Additional income tax assessments on the Commissioner's and collectors' 

lists made during the fiscal year 1941, by tax years-Continued 

(8) JEOPARDY ASSESSMENTS UNDER BANKRUPTCY AND DISSOLUTION PROCEDURE 

Items Tax Interest Penalty Total 

1920 and prior 

1921 

1922 

1923 

1924 

1925 

1926 $1,901 $1, 570 83,971 

1927 345 264 609 

1928 1,474 1, 040 2, 514 

1929 2,633 1,700 4,333 

1930 2,243 1,314 3,557 

1931 661 347 1,008 

1932 5,884 2,762 ,$1, 471 10, 117 

1933 467 192 346 1,005 

1934 6,531 2,212 1,603 10,346 

1935 210,957 67,500 844 279,301 

1936 6, 290, 812 1,336,301 9,832 7, 636, 995 

1937 990,146 154, 429 8, 438 1, 163, 013 

1938 • 863, 510 99, 944 25, 790 989,194 

1939 565, 269 27, 247 76,046 668, 562 

1940 398,429 1,067 1, 873 401,369 

1941 

Total 359 9, 341, 262 1,897, 889 126,193 11,165, 344 

(i) FRAUD JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1920 and prior 

(4°' 7-12'4 E4 2:a AEA cc:3g 

$26,590 $7,443 $2,179 $36, 212 

1921 120, 206 279 700 121, 185 

1922 69,001 70,062 49, 794 188, 857 

1923 5, 493 1, 309 6, 752 

1924 9, 808 4, 522 2, 852 12, 182 

1925 35, 573 31, 538 18, 691 85, 802 

1926 78,826 65, 481 57.055 201,362 

1927 215, 161 160, 819 46,266 422,246 

1928 131,177 90,850 61, 191 283, 218 

1929 131, 905 89, 038 73, 464 289, 407 

1930 110, 223 63,150 74,676 ' 248,049 

1931 17, 598 9, 363 11, 696 38,657 

1932 105, 592 99, 591 24, 970 180, 153 

1933 . 358,547 146, 973 132, 243 637, 763 

1934 545, 101 193, 865 142, 336 881,302 

1935 612, 541 178, 239 175, 540 966, 320 

1936 850, 921 192, 492 315, 280 1,358, 693 

1937 2,479, 538 404,855 827, 290 3, 711, 633 

1938 1, 310, 612 124,995 179,330 1,614,937 

1939 428, 249 17,872 111,005 557,126 

1940 30, 686 765 5, 670 37,111 

1941 1, 567 1, 567 

Total 996 7. 669. 865 1, 897,182 2, 313, 487 11, 880, 534 

TABLE 10.-Tax items appealed to the bnited &a es Board of Tax Appeals, fiscal 

year ended June 30, 194i 

Items Tax Penalty Total 

1925 and prior 134 $751, 880 $105, 049 $856,929 

1926 22 146,486 69,537 216,023 

1927 26 164, 664 62, 028 226, 692 

1928 27 155, 741 58, 435 214, 176 

1929 39 403, 173 116, 843 520,016 

1930 44 369,423 116, 557 485,981 

1931 41 168,051 67.650 235,701 

1932 48 240,874 36, 944 277, 818 

1933 82 2, 504, 685 347, 448 2, 852,113 

1934 214 13, 018, 409 264, 987 13, 2533, 396 

1935 600 23, 179, 178 766, 228 23, 945, 406 

1936 1, 121 25, 909,380 863.311 26, 772, 691 

1937 1, 861 35,088, 523 1, 243, 939 36, 331, 962 

1938 1, 169 13, 279, 882 624,008 13, 903,890 

1939 446 2, 388, 280 156,343 2,544,623 

1940 17 159,359 87,999 227,358 

1941 

Total 5.891 117. 927.968 4. 966. 806 122.894. 774 
TABLE 11.Manufactured tob 

ES V 

0 22 

Ze E0.2A 

00 

g h 

,?1, '4404 g§ 

445frt'ocT g2 gg 4n —= 4s,„ 

wamAin=00 0sose.m R61or.,E,ggagg. 

COg 

ag 

1E 

-

ERialREEEAAPAI 

R - W71 '"A=i A a4 Nm 4 71 ce 

A 

C01,- 

a 

44 

4

44 

gig 

E C M 

44 

24 

cbg 

2' 

R4 

66 

A 

z 6=41 

4g 

gg 

82 

66' S 

ICO a 

e 

044- 

ggs 

e Ota 

O.0 

MV 

EUEggigEgAgEnEA 

65gtz°6 1 6 54 

N 

w

nCV 

on 

.604- 

mgmL10 ,0, 0mmirmW00g 

WA"4"

OMOV00M00M00000m 

eml00.0m000.000mm0 

-!q'-

m"mA 

TOTALS FOR STATES COMPRISING MORE THAN ONE COLLECTION DIST 

Rircl 

gg 

22 

aa 

grA S 

a 

22 

2! 

cE 

gg 

an 

eg 

A 

112 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIONER 

I HM

F,aa7-16Emrgran6gg6ficc.1-gpwon:-.,

• rgrh- -tee wl: '4 6E64:an 

0, °'. 

. , - 

, , . . . 

Materialsused inmanufacturing tobacco 

Other 

materials 

4 

. 4 , r2 

" 

Era 

44 

4 4 

e 

P 

ag 

n8 

.4 4 

6 

i 

,-. 

g A g 

ZN 

s n Ta

g 

g 

. 

m 

t4 

... 

22 EEE 

ea 

a 

4 

a 

- as 

RE 

4 

8 

a 

g 

a 

A 

.. 

- 2 

' 

a 

0 

8 

ci

.m0,-. 

423 

- a...ef 

.44

20,- 

-1- ., 

Licorice 

4 ,- a 

g

Ai 

a a 

g 

i 

E RA 

4 4 

6 

" 

6 

a 2 

.°4 

g 2Agg 

4.-Z 

grni 

S M smA 

in 

' 

, 

S 

g gE 

r: 

, 

6 

A 

4 

6 

A 

ii 

@ E 

45% 

EgAR 

4 

Inprocess 

cli 

g 

. 

4 

:1

ss 

iE 

- 

E"' 

? 

a ,, An 

g 

A 

- 

';"i3

gm g 

11 

tzteg

WOE 

rsa qga 

45EP 

a 

Scraps 

1 1ft:44 

4EAREA 

-

AEIREEH 

, glig5 1 

2 r4EHE "L.! 

ggiA, 4 gailg.44tgq 

MESMER' 

t Jes

M utor po S 

g 

g 

4 E22 E 

- 

i 

8 § 

a 

EAgEg2i. 

G.6.-:- ■,:. a% s. A 

4 4 t: 

MAHE 

ge,..Az4aa 

-1,5a 

161 

EIA 

il ssu mme po

al 

4 gb-2 E`172 

g "g 4 a 

E g 

a 

a 

A EgE4 A 

g4 

.7 a 

122'4 

e,-...,„, 

EggEg

ge 

442 

eaa 

EEA 

Nu

mberof factories 

12-■ . 

17ti 

"M""42242'244,r"':224cr- 242r 

0 

S 

V OMOCoom00Mmmm0000MV00mM00 100VMCONm 1 N 0 

0000000000M00001000000000000MMO 0m0 

In business 

Jan.1, 

1 940 

'22"'"8244'4 °^424r"' n 4RA74'22:12 ' 

A 

•cag. 

il 

emoUP44g4 

Klig 

*g 

1 ,4.5tha.2vng4 ,° ,ams0.. 

At, algtA

. 

2 

C4.4 

g 

vi 

roZZraFWEEZ4

moi“!r_g 

, F 

ag›, t, 

.§.1,14fhA 

imz&z $stu i 

t'ssellEIV 411 

 Ylgazn 

JI 

41 

''' 4v 

nogi“..mw 
114 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER 

oci cn 

'2 

.05RR545555Pq5EEtgEARRIRES555R5 

"f4 4i elF44 6 g5k1 ''' etliit2;gtriE5 

Manufactured tobacco 

Removed I 

Tax-paid during 1940 

ERERAERMAII.414ERR 1455ERRAIIIREIR 

I Rdjg5.445g4 Rr REgg .: ETW554141-1-r 

g 

. „ 

Forexportation 

., 

g 

R E E 

.., 

a 

R 5 

g 

E 5IR5 

alHE 

a .: 

CI

aOli 

3 

0 

5 

-ol . 50I o - 

-. 5 II 

3 

a 

I a i 4t: 

HIM 

[-, 

<4 

gEEtg2 

ggge 

R54411 

3 g 

ci 

Total to be 

accounted 

for 

II'-'5ERREEE5E44MARRRII 51=gERREEMIIR 

5 054'0,50: A R5g4 ''''' RIEgFE5R- E 

g 

. _ _ 

e .0 - , , gge 

On hand 

Jan. 1, 

1940 

g 

. 

g gR 5 IEI5 

8" 

• 

5 

4 

"4

A5/4 

-4 

.4

01441E ,,s , 

ERE „a ,1 

et; & 

II , flERE5RE4R519424gIF5III4 II IIR 

5 5g4g4- R545 5 EgIf 64544iI45X- 5- 

4 a , 04- tiga .. 

. , 

IER5MER55RI 5 rI4R4R4RIBRIF5,5515, 14451 

5 lgiJR - Inag 4 551E 045PIIIREF - R - . . 0, 

. . 1 .6 g n g*e 

0, 

1 

§ § 8 R 5' 

 i g 

4 

2 

c 2 

. 

'' . 

g 

al . 5 

 a 

a 

Twist 

a 

1 

ILE aa

4- 

18 

..; 

4 

eg 

R - - I" 

4R 

'2 

. 

e 

a 

g 

E5 

-6- - z 

..; 

E 

g 

gc. 

.0- 

ME 

oc3 -6 N 

"4'ggc3c5c4g 

Flax: 

- am 

.•=1 

, 

= 

P 

0.0gE 

visit, 4 

5 

p 

6' .gg 

- 

- 

g-EItlig ,a&5 8 . gitteolto4 

a.r.o'RA17.4e4;-.E.Z -4.04:4g 

...e-zgle,c.0,5. 

4 .415 Z1a5itacf.ag alE 

i4Y.Z tVl og e4->Y84) 

. ›-, 

Elsge4aligg. °i1 

oi . 

olo 

0-..5 

gr2lOgag

823222222322S 

8 Paa 

Rii,ei 4'5Fpf ig 

61,304,618. 70 61,171,486. 02 

86T ' 89 TM 

155

Ma

2g2

015E4EFE4E4IER 

• sa'"V gSR 

340, 581,215 339, 841, 689 

62L 939 '

MIM

a122

Iet:e

'4 I4''" a ../..;4- 4 ,4. 

2 

2, 354 

1, 1 18 

1, 465, 098 

1, 464 

3, 743, 749 

3, 989, 765 

913 910'

F. 

OLLECTION DISTRICT 

4 

5a4

gRAE

m

0, 

g 

o-rec

g5IM4YIE5 E FA 

. g 4 d4 

9 LO' 'I 099 

us OT ' L

es9 

al

EE55RIR455III 

lt2:°6 '4517" "ill 0. a.; E - 

'esz BSS 

6 61 991' ' ,09/

93 '3 961

oar

22

4 

IEE

4•

ARIA 55 R IA _ 

4 1 r 

5, 062, 866 5, 926, 876 

8 19 010'

TOTALS FOR STATES COMPRISING MORE THAN ONE C 

c.

ugg

g41:0

WEER444558 A1 

45I:'145 17 0.4 

cawor , .+ co , 

344, 423, 209 

ICI 343, 306, 7 13 

I ' 911961'

 .R 

M

41

go.

co-r-tee-reR

EEEIRMEREMIAR 

. uc . 

<so 

. 

C4 . . 

g 

Mg ' 190 ' 820983 P 388 P 669 

, M,31 P 09 1

s 14

222

°It:d

ag

" 2 

21 

_ A 

4,176, 364 4, 701, 102 

9 13 861 '

j M

4 H

IR i 5 

g4 g 

5,605, 287 

6, 732, 777 

127,490 

1 

g 5

c4

E R 

e e 

k48, 758, 919 

51,262, 796 

2, 503, 877 

g 

P 574 

Pi4 . 

1Rg 

;.! 

WE.51 

.94 ii E op...04F ,4 gia 

° ''' " 1- 2 4g o tv4at .- 

n - 

N's2ggiA,me 

STATE 

Palifornia dinois 

UP4
116 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER 

Cigarsweighingmorethan 3 poundsperthousand Removed I Tax-paid 3 

t§HRERRUNEMMERINgg5gigrggiggggP. 

EgOSErIggeggggWrIgErggtgad 

7x . ,1 .1,4 EfEr eElfa.,::ateE -i ,E,.: gtagm& 

Perso nal 

consumption 

tEEREER 

.'ergei.44 

t4

8 ^or 

Ag 

. 

reit.-rga4lIgg 

REMEEMER 

g

MiEnESEM 

4e1 ggoggri 

n no

1 /0

2 

E 

A E?, E § . 

. . 

4 

§ 

ggg 

ER§ 

lg 

R§ 

0. 

., 

.0..z 

gg5 

oo , 

I"

t§ 

:a 

glg6 OE 

EEEREEE 

4 CD.7 

iigglgigtilg 

PRIEgRUERR 

54 

RE§R 

d 15t5lit 

ERE HER 

ceg.4e 

0

'CI 

1 1 

ER5REEEEE 

5 -4g11 lg 

aa a 

c, 

a a 

6.4lglatIlllg 

REFEFFIEF 

a ae 

rit

gEERERIfiUn 

.;, g WW1 

ageeaa 

Manufactured 

tEnEFaEHEEEgEEREEMEEERWEREIRER-r,. 

IgEERTIM-rnEEEnEEfligrEEEVERE4 

gg g ga gega eg..7gge .64 .01v4gg 

Tobaccoused inmakingcigars 

=,97r; R FEl t 

w

b..,mo. 

g 

lfT4 

ga a.,, g e 

. g 

; pzeeee ,:aegeee ee .4. 

IMETOAREUPEPigiEnEER 

ee.44,:e 

2"11 4 Se'^ 

5 N

Pe, -"Re"" 

g III 

5 

elilEgEEMEangerralsP1ME 

.i ,,,p.: '6.144 44agtigg a 

.Morro o c ? '' 74 co ro co oi.....00rm 

.-I eno 

5 

g 

t 

%"Fsgel 

WANEWIzUgiaL=5:15lElggl Plal-rnn 

'05g-"gggilg ig" gal 

;5 -- s , 

l , 

Numberof factories 

m-,;1• 

2g 4 

"224,rntoZ2';142,8424=4MINSE,EigE 

u 

le'. 

t °'9 4,-fl°214' Xre°°°°.-1214 g 24 

0 

P. 

O 

.= ■ M 

00.4.07MN00000,..0....0O ■ NM.00.000eq. .c 

. cm 

le? omM4 

"Mi'DflR'2822 mN7121A'r 22^4*W484 W42 0, N 

",„ 

g g= 

M.)ct3g4.g, 

Agra, 

V 

4 c1 

r4

2H 

g 

O E 

.6.4 

^1 .5 u 

g, E 

40a.iimaggoligitatgso-rilf4h= 1

..1w.gc3844a44=tA, m2AZacTE-4 

AEm pagM 

g EV 

^ 2 A ,e14to,2 

..`1 4) 4T 

a, teP.T 

ITIBB14

qWtt 

1:4 

AC 

Q"Z 5 

›' 

'V. 

se

ggigMagaWgltg iflW 

RUEERFEEEnREIEERE FEW 

e 2):6:41 gp41 rs glF4 

5, 280. 801. 890 

g

ea,,..gEECIREIRRREEEE EiRii 

pi vagargea aeag aaag g

7, 181,168 

§ §g§ E La. e eae r.: 

. 

. 

5,147,975 

Cleliglql.:556 61

OEEEEERMER§ ORI iREE 

45 VG.41 o; o-io: a gaaag a 

g. 4 

255,405,146 

gREEMURRIERE HER ram f 

06lllVIglig lg-Tg l41 

. _ . g ea 

313,271,603 

glithtlilliggg5Agggi 

EERRigEEEHREERETIii ERE1 

aw 

eeg flip erg eggece ae g gg , n R = 

5,235,271, 076 I 

HIgEHEEHRU EEF Mr: 

ssdgggg gageg ga ga g 

1 

LI I RS I EZ9 

..14;t 

RFRREnEiREEZRRER ERIE 

girgaigel .74 

, „cs s , 

34,266,490 

REEERREAVEEMIRH :9 ERP- 1 ' 

OF.1 Eirgrgasigag"' R'Ig 

a 

57,238,437 

ro'"24R42;123Viirl'r'''.`1Mg?.. . 

3 Y 09

.9...............4.0"......-. fl o §

v ■000.0..o(2..00ION.C1000N040 " 

r42;ig.`2,P4Ae".4cc"=?Ir 

1 199 '

ai 

td § et2 P. 

■5 4 At+ 

>. It mO 

a -,. . 

2 P.7,4; , 

m !

m.I a 0 m 9.t vfigg4 2 a44 0 4 ... g ma 4 

4q12,51e 431iii -.g.5. 4 g 0

m24 218 w4,0-tc22 gy . :S P EE

gE-iz'agmagatictrugrao5.flaa 

ratrottt-P-4 mggegig 
47

ef

Oc

o

2

E

R

8 

° 

28°4 4E° 

e-reeee 

HEEEEEE 

a 

ee 

 a 

ega 

EIE 

cipicepi 

IEEE 

g

118 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIONER 

C 

-e 

C 

et. 

t 

C 

go 

go 

C 

0 

0 

°E 

? 

,(TioTag..%23%;:*..WggYN'4.x=MOSI=b3.117 W 

-I 

 'eini t ' pZ.gv;cie S -icicierZeimici 

4.4 gg 2 

.. RgagERgEE-mgagg.tEgag4 atEg-ggsaad 

5 5° 4smi° °F.,°2ER 4m „05,,g

>° 

_ , 

4m pi 

12HETAH21§-2151Mgiliige§Einern 

tc-44 ccom 817148°=4Stmcog R044 

18554-4.r-'4184^5888'6° E688868g mmo 44 

;:4 g al^ t6E-- .it.i--gc's '.2.f ggSt•cr: 

py-d 

48i445t 

az-gt,- 

P2v,-2.2 

4 44 

044'.i2° R E E E RR R HMV 

tOcve, :5P. 

E40w0 

1 

itrziglflgge -I 

..

6,6,-gaa- 

= .m946 .g. 

.1°07 

E 

1 t ,op5.- pi c.i ci e t- a 

4, 2E ° 2 ° % °E2E ° 

pE-.2g,s8-.” 

,e e .. A . a 2 "gtqW 

cm 8 cp. t c 44mm E tEE4m54 c°'°°' 

3ac..a.t rats. 

a-gtag..- z -- g 

°Lgt2IET.1 HEEHERE EEEHEEHERR REREEEERT911 

grsae° 11°02 `c.i O4rborici -e es.,--: e 't,ioff 'ce-t oti.er Rot".4 ci 6 'of ' 

tS8"mt0 '°'-'"'° §'t 8°1°3° °8'°S'^ 44° add§ 

4E4.00E4°, i t--:: : - n=q:= t:211 etige.re 

16 

o.B, 

gjg.P105 p. 

ga.C10,1 , HERE E HE EERHER H EEREEH 

g2gat.g1. g .:-ig g 4 g47,4 gr-lfgEgc6 4g rolIgne 

o 4 goi,N g ci -7a- 

.4.-. 

asa..,. 

at...se 

uag- .., 

. 4mk.m HEEEEEEREEEHREEHERHEEREHEEHE 

-vain p=gEfiRcgs ;a40.2glEgin;ii EgGon EgRaiEt r„ 

.aligpvj. . g4 g I-r 4.eg-r .6g 41-4 44 4gtg4a; 

C 

iggS204-Eitta;Pi ER:Mte...,>W110 

Co nq 4 z amgP"B: 

§RuLIP'4°41 

's ---agE.gcozzzl 

...i.a6M oagama EiZAz,747.x.E., 

44 t4 ;9.1,_ 00,0v 

.0 cc>4. 

LIW5.410SOItenn 

8E42522RIZE2ERt8888 

22 c8gi °E.82g 221 a 

m Em 

eeige

RREHER HEHRERHE 

lregee.;eeeee‘r 

aeg 

2E8'24882=5R22°E24E 

§peg bre 

IE 

mO 

00comggomomecon 

04 

ggccipitipo-cp 

tattEScerct28884 

c ccE"5 R 

04 

z

tz 

16>' 

14 0 

SERIVJEWEgagagE 

EHREEEEEEREERFEEE 

egz- - F g 

aiS t 

g gg-„ cl."9 4081eg :55,b4 

p4 4° %tE44° 41-1U121 n e 0 >9 Ft

ggA=0,10 N .C.0eg 

MtI CI OCU. 411 4flaFTh 8 g 

FEZZ4.gF.TP=i8ri:PE-gc22E.47a 33W3 

o

4 

ci

1

e

E
0 

Oi 8

s4 fPg -48 

as 

ag 

Ui 

teg. 

go 0. 

RE 

t 

and

.v 

t2 

c?, GN

E 

 c„. m

12 

tg 

mq 

'42 

it 

am crlo 

R! 

0 

a 

g 

=4 

R 

eg9 

'T jf.,

Et 

tt, 

UT 

0,

§ 

u

gliG 

11E 1 

'i%' 

Pt g 

ag 

1pg 

qy 

t171 •,•-•1 

2,154 

;11 4 

coo ■44: 

005 t 

I. 

c714 Z' 

AgE 

1g 

O 

0 

0 

120 

0 

0 

-.• O

Z1 

g 

1' 

to. Et' GO 

t3 

g 1.3 

•

of 

.0 

U 

P• 

dc 

Rf 

ig-cs 

 oP P. 

ti a 

A 

ca) 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

3 

x°

ii; 1 727 

Po Adg 

2ER 

a

'040 m o o 

01 el 

8 

tER 

c.Sg 

e6 

C- 

`88 

kr; 

0 

CO 

"c3 

0 

0 

trap, 

igg 

mg 

5 

CO 

1%g 

tg§ 

re0, 

0 

04.000 

gEss, 

2E 0

00 

0 z 

8 

• 

REPORT OF COMMISSIONE

7.,..5 ag 

... 

gqingt

2.9R27".R2WM

, 4ar 

Cigarsweighingnot morethan3 poundsper thousand 

Removed 

Tax-pa id dur- ing 1940 

tIEREgEgEEE

rgREEIgE

2

% 44 ,-re 

j 80 10 -

Fo 

na,na Jan. 1,1941 

c° 

R ERE 

e "Q. ° "Q.' , 

E

°

. On hand 

Jan.1,1940 

t 

4 

8 

re

RREE 

4g 

r

8 

l me pom

w e pin s -a

EEEEIEEEEER

1' 454R10^g2

.4-7 nn 

Tobaccoused 

msg 

Er41 

aas 

; 

';', s 

oz :4, 

 t: 

M 

E 

s 

4 

2 RiPE 

ei4 4 

o , 

At 

'-' 

W 

4 

r ''w" 

SR25R 

°' Di' 

Reaea

n 

DISTRICT 

First California 

Sixth California Florida First New Jersey Fifth New Jersey Second New York Third NewYork 

North Carolina Eighteenth Ohio Twenty-third Pennsylvania South Carolina 

423348-41-9 
II 

TOTALSFOR STATES COMPRISING MORE THAN ONE COLLECTION DISTRICT 

OVI 

cg 

: r 

122 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

DI 

8 

8888.882888188 ! 2q 4 °2

-1! MigggElggig :1 44 t q 

g 4 F1 . . .. . 

8' 0811

99 - 01E3 4' MC1[

Tax-paid during 1940 

At $3.25 per M 

Igt 

n 

,. . Iggts 

HMSO

i 

 g rig g FT 

F,,t,:r7g--gg g gig :::- g „ 8,7a.. 

71 -7 °lag g g 

4 ea e 

• 180,464,615, 940 

1 72, 039, 270,607 

8, 425, 345, 333 

At $3 Per M 

P.6g- 0U, 

I

di88''17: .00 

4ME ?. §gPq 84 

488'8 5: ig .i. 0 0.0 - ‘ 

Cigarettes 'weighingnot more than 3 you 

Removed 

forexporta- tion 2 

t § 0

g 

`' cl . 

i 

§§§§ 

R AiE 

.... 

RD 

U § 

§ 

g 

1 7, 650, 477,945 

7, 878, 343, 362 

4cri Sin 

-EP ER§RPRr=§ R 

F8 1 § 

n t

■ niRA '-' ra § 

to e 

.., 

3TE E26' 1 08' 1

n EC I S ' L82

AA 

g.-7 

t 

.. 

CP- 

. 6'

tng 7.= 1 § 

g 

.. 

.1:91g1 

gg-§tg 8

° 

a

8 

'A .';iv, 

id-id' 

s 

Fi 

s 

2 

313,614, 972 

'1 "501 012 839 

w pme uov pan

IMPEREHE4 R PE PR 

teee4sesee-pae s 4x74 d - 

88.4838-rag.'848 ° 888 2 m 

e e.-7 ...„ . g 

4 c° - -I ',4- s s 2.1 - g 

189, 371, 258, 1 71 180, 666, 824, 480. 

8, 704, 433,691 1 

.fli Q P

°•°'08 °cc 

P.'S': 

4 8 g 

s a 

.e",b 

-r 

a 

: 

.6 ra A•rw> aaaax F, 4aa a 'ci cO g 

''fla 8 o 

e 

ilfl 

e 

8' 

e 9, 328, 976 

23, 962, 747 1 5, 804, 876, 

8 ' IVIL8 '

g 

5 

F1 

t .1r02 11 -i,-; m 

0?,e e s

:la 

- 

- 

g'g 

Ea 

.-- 

e-t 

0a, 

Go o o 

a 

.0 82, 234, 863 

292, 516, 907 291,326,274 

9 ' 061 ' Egg

Pi 

,Fi 

. cc° 

gg 

EAR 

:; 

t 

P. 

i 

EMI g, 

 , g 

qg 

m 

-1 

56, 414, 415 

106,564, 442 99,599, 472 

9 696 ' oLe '

95 99 6 0 PI 

0 Z Z 

P 

. 

•100 000 .....„......— . 

- 

wo 

— — 

In 

business 

Ian.1, 

1 940 

IrC40.0,.■,C4MC4r-. *-t ,inc0 ..W 2 

CAT:Ctaf 

du,g„ 

P.:07 

83 

11 ,Wn16111.stg,tr, 

0p, 

to,, zzg,,s 

0 

;SI 

4 

Z 

im— 

 re. 

CI 6E 

4..thc

,.7.E, 

a' 

E 

85 

11 

°° 

00i 

1 

gg A:4 

REPORT OF COMMISSIONE

eo 

Om 

gaag 

 ga2,3 

F-'3 0 

101 

° iVIt 

.11 4.4 . '

EU 

8..!1§;- 

 11:4 

t

bOL0 

127,0 

g2N 

Ecao§ 

me 

a 

2 50`8m - 

i3n g a E L-ze.g ,e) t 

I 

,.°3

44Q 

>E 

541 

g

e.5, ›4k 

c”,ZgZ "4! 

g 

'IN Eli 

gg 28612a-800-8 

7,i'se 

8171

.83 ° 1 t 

0881W 4 f 

5.0.8.-71t5.4 

ama in - F 

srsztg 

0 

6z4 
TABLE 19.-Leaf tobacco used in manufacturing cigars, cigarettes, and tobacco and 

snuff, calendar years 1931 to 1940 1 

Year 

Cigars Cigarettes 

Tobacco and 

snuff Total 

Large 1 Small Large - Small 

Pounds Pounds Pounds Pounds Pounds Pounds 

1931 126, 611. 200 1, 016, 997 43, 171 329, 919,309 209, 812, 985 752, 403. 657 

1032 103, 233. 757 1, 059, 270 18, 347 299, 010, 925 285, 815, 510 690, 133, 809 

1933 103, 953, 997 745,245 17,325 326, 076,032 279, 875, 778 710, 668, 377 

1934 110, 203. 292 910, 672 882,144 374, 500, 769 289, 024, 051 775, 529, 878 

1935 113.066, 319 675,804 14,050 399, 444, 333 262, 731, 465 775, 932, 051 

1936 125, 875, 214 702,567 12,474 453, 314, 812 267, 461, 957 847, 367. 024 

1937 127, 879, 843 773,417 18,699 979, 942, 665 269, 309, 344 872, 923, 968 

1938 118, 161, 858 589, 451 14,151 483, 826, 314 262. 710, 323 865, 302.097 

1939 122, 071, 819 609, 278 24,9533 509, 107. 672 253, 485, 999 885, 299, 201 

1940 126, 309, 121 525, 764 13, 864 535, 203, 981 260, 662, 967 922, 715, 697 

1The quantities given are unstemmed quivalent of all kinds o tobacco used. Stemmed lea and Wraps, 

etc., used in manufacturing have been converted to un temmed equivalent at the ratio of 3 pounds stemmed, 

etc., to 4 pounds unstemm d. 

2Does not include tobacco used in bonded manufacturing warehouses. 

TABLE 20.-Production of manufactured tobacco, snuff, cigars, and cigarettes, 

calendar years 1931 to 1940 

TOBACCO AND SNUFF 

Year Plug Twist Fine cut Sem

i) chewing Smoking Snuff Total 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

1931 76, 652, 810 6, 377, 436 4, 170, 275 61, 235, 195 182, 947, 238 39, F54, 345 371, 237, 299 

1932 61, 945. 173 4, 918, 034 3, 354. 471 50, 080, 201 190, 986, 528 35, 994, 337 347, 278, 744 

1933 61, 361, 495 5,041, 990 3, 120, 427 44, 729, 472 191, 766, 382 36.098, 394 392, 113, 160 

1934 62, 759, 057 5,079, 904 2, 970, 421 49, 786, 387 193, 075, 426 36, 893, 903 395, 565, 998 

1935 50, 588, 960 5, 609. 226 9, 683, 060 94. 005, 896 191. 750, 069 36, 095,140 342, 727, 851 

1936 59, 164, 521 6, 372, 164 5,068, 192 45, 342, 446 194,006, 958 38. 022. 225 347, 976, 506 

1937 58, 330, 801 6, 774, 192 4, 999, 260 95, 559, 419 187, 774, 329 37, 141. 208 340, 579, 204 

1938 54, 494, 646 5, 658,859 4, 572, 346 42, 775, 966 200, 693. 591 37. 173, 135 345,368 538 

1939 51, 262, 796 5, 732, 777 4, 701, 102 41,350, 992 202. 289, 113 37, 969, 933 343, 306, 713 

1940 48, 758, 919 5, 605, 287 4, 176, 369 42, 909, 979 205, 101, 032 37, 871.628 344, 423, 209 

CIGARS AND CIGARETTES 

.5 

SS 

8 

0 

Cigars C garettes 

Weighing more 

than 3 pounds 

per thousand 

Weighing 

not more 

than 3 

pounds per 

thousand 

Weighing 

more than 

3 pounds 

per 

thousand 

Weighing not 

more than 3 

pounds per 

thousand 

Number Number Number Number 

5,347 , 921,293 338, 996, 780 5,159, 6110 17, 064, 214, 494 

4, 382, 722, 918 278, 748, 580 3, 373, 577 06, 632, 433, 839 

4, 300, 094, 810 209, 514.620 2, 845, 705 14, 874, 217, 470 

4, 525, 780,081 221,976,561 88, 202, 405 29, 976, 333. 581 

4.685, 369, 674 177. 822, 178 2. 504, 490 39, 966, 179, 916 

5, 172, 278, 512 180, 005, 714 2, 457, 940 58, 893, 958, 304 

5, 303, 368, 834 198. 589, 972 3,066, 460 69, 969, 319, 880 

5, 014, 757.804 152, 989, 705 2,637, 530 71,686, 382, 671 

5,197, 627, 088 159, 939, 932 4, 368, 790 80,666, 824,480 

5, 235, 271, 076 134, 738, 339 2, 248, 740 89, 371, 258, 171 

g 

9, 4 

a 

s'S 3 

g 2 

o e, 

mm s 

.5 a 

yq ‘! 

FS o U 

ay . 

NOTE-Compiled from statements of accounts prepared from manufacturers' inventories and monthly 

returns filed under the United States interns -revenue laws. For cigars produced in and removed for domestic consumption from bonded manufacturing warehouses, see table 15. 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1990 

124 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE' 125 

'''=4 

; 

S ASSAISq8A 

I ?hitlari

gl 

- 

601301I 

L8 16E1I 55 .939'I 

COMPRISING MO RE THAN ONE CO LLE CTION DISTRICT 

Cigarettesweighingmorethan3 poundsperthousand 

Tax-paid during 1940 

At $7. 80 

per MI 

22,039,890 2,364, 0 40 

ogt 'ns 

At $7. 20 

per M 

Num ber 

350 

1, 150 2,500 440 

552,960 30, 600 226, 290 16,820 29,350 

Number 

1, 500 

7.)i,i. v-0.0 cm- scr, 

in 

' § § § ca g cr Ef 

a 0 

000 '929 1 009 4 349 009 1 268 

,, 0, 

. ..zi4 go3- 

0- 

t !eRg - ,:,tzcs 0, 

002139 099 16 

O

 0901 005 

lt 1.8 

00

1 09

11 

zeotanN 

099 TIP 

t.i. 

Lig 

0,!,,i0 

El t. ggeg 

1 ga e, 

Num ber 

300, 000 

2, 650 300 

216,650 

7, 800 

900 

528,300 

59,550 

05L'891 

a 

gl 

0- 

tSESSSA SEER ,c-r-...., 

1 etea'-rrit:a

y

.S 

, a 

2,248,740 4, 368, 790 

2,120,050 

61 HE 

spunk/ 

Tobaccoused 

aa 

. ,„ Aw n go °I 

e, 

EOL gll 

OM 1 

866' 1 tyzetio e7 

0 

g) 

tO 

04

a 

909'3 9 10 '3 

169 

' Z 4,5 

lo El 2 

' 

‘.. o cq cv o 0 in 

.4 Si cin-:i.a. 0 a e - 

g 121 

8/9'81 OYL '01 

8E11 

STATE 

New York 

Pennsylvania 

• 

DISTRICT 

Sixth California 

Kentucky Massachusetts Fifth New Jersey First NewYork 

Second New York Third New York North Carolina 

First Pennsylvania Twelfth Pennsylvania 

Total, 1940 

Total, 1939 

Increase Decrease 
'Pe

REPORT OF 

t 

126 COMMISSIONER OF. INTERNAL REVENUE °mo 

s 

Fy 

da F 

F 

5 

Percentof total 

g P 

0 

d e 

O 

W 

O 

0 

Z 

g o 

o 

P. 

g 

g 

5 

w

6 

a 

o p 

06 

6 

4 Z 

C) 

6 

O i w

wF 

MA, 

Wo 

Z 

AU 

6 ^ 

Z 0 

o 

 o° E;i

YIN 

10 

C 

P E. 

66 

Z 

E. 

Z 

0z 

0z

0w 

6a 

FU 

4 g 

 6 

6 F 4

Eirg 

0 

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 F0 

a 

6 

OE Gra 

0 .4 

Z A 

a m 

E 

0. 

d 

z 

z 

2 

0 

a 

F 

0 

m 

d g 

Manufactured tobaccoproduced 

Outputof tobacco(pounds) tt 

0 

GO 

0 Scrapchewing 

N 

X 

X 

6 

4 

tl g

d 

y P

b R 

aa 

On 

OW 

aa 

n0 

00 

a 

a 

22g 

o 

glggF:ggF: 

,HREE-g 

....., S 

gagoega 

Eg 

g og 

Sara 

g 

"van 

:MARA 

gg 

8FAFFg 

aa 

RFE

P601 

Fgg022 -.12:."01 

4 

N 

A 

Io 

181 Outputof tobacco(pounds) 1 41 

4+e0 

EFIE=.FFP, 

71+11 

aa0NNO 

0 "4,0

222,152 

g "asa 

2228FF 51 

2 

8 

. A E6 

F 

0 

0 

F 

a 

F 

6 

a 

A 

0 

z 

F 

0 

A 

0 

a 

iz t z U m 1

mg 

ap, 

ON 

IM„1 

.4 

 0Z 

a

Ua 

-4 

o 0 N

az 

O 

X 

CP" 

8 

w0 

z 

o 

g 

6 P-1 

z 

0 

0 

0 

6 

6 

F 

0 

0 g 

0 0 

CC E. 

N 

04 

rsrle., .4g 

CV 

REPORT OF COMMISSIONE
Number Number 

Second New York 

Number 

4, 000, OW 

Number 

4, 000, 000 

Numb* 

128 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 129 

TABLE 22.-Exportation in bond of manufactured tobacco, snuff, cigars, and 

cigarettes, etc. year ended June 30, 1941, by collection distric s 

TOBACCO AND SNUFF 

TABLE 22.-Exportation in bond of manufactured tobacco, snuff, cigars, and 

cigarettes, etc., year ended June 30, 19-41, by collection districts-Continued 

CIGARETTES WEIGHING NOT MORE THAN 3 POUNDS PER 1,000 

District 

Unaccounted 

for July 1, 

,1940 

Removed for 

exportation 

during year 

Exported 

Tax-paid or 

returned to 

factory 

Unaccounted 

for July 1, 

1941 

First California 

First Illinois 

Kentucky 

Massachusetts 

First Missouri 

Fifth New Jersey 

First New York 

Second New York 

Third New York 

North Carolina 

First Ohio 

Tenth Ohio 

Twelfth Pennsylvania 

Tennessee 

Virginia 

West Virginia 

Total 

Pounds 

1, 787 

175, 388 

30 

182, 646 

577 

- 524 

586 

597 

82,838 

93 

Pounds 

3, 567 

11, 382 

1, 337, 760 

226 

867, 953 

108 

2, 202 

454 

9, 387 

305,101 

16,827 

232 

4,384 

43 

1, 378, 965 

1,985 

Pounds 

2, 472 

12, 010 

1, 329, 778 

935, 371 

1, 343, 235 

256 

108 

, 59 

124 

9, 964 

290, 877 

'15,305 

232 

3,479 

640 

1, 316 

Pound a 

56 

381 

58 

3,935 

Pounds 

1, 095 

1,103 

182,989 

115, 170 

2,143 

330 

14, 748 

2,108 

905 

114, 633 

262 

445, 066 3, 940, 076 3, 945, 226 4, 430 435, 486 

PERIQUE TOBACCO, SCRAPS CUTTINGS, CLIPPINGS, SIFTINGS, ETC. 

Florida 

Louisiana 

Second New York 

Third New York 

Tenth Ohio 

First Pennsylvania 

Total 

Pounds 

316 

5,358 

Pounds 

220 

22, 966 

91,490 

116, 271 

23, 535 

9, 304 

Pounds 

220 

22, 653 

93,939 

118, 271 

21, 480 

3, 766 

Pounds Pounds 

629 

2,909 

2,055 

5,531 

5, 674 263, 786 258, 329 11, 131 

CIGARS WEIGHING MORE THAN 3 POUNDS PER 1,000 

First California 

frith California 

Florida 

Louisiana 

Maryland 

Massachusetts 

First New Jersey 

Fifth New Jersey 

First New York 

Third New York 

Fourteenth New York 

Tenth Ohio 

First Pennsylvania 

Twelfth Pennsylvania 

Twenty-third Pennsylvania 

South Carolina 

Virginia 

Total 

Number 

26,250 

6, 700 

42, 500 

2, 500 

11,750 

85,000 

28, 000 

5,000 

Number 

2, 500 

8, 500 

1, 872, 662 

37,950 

16, 000 

6,100 

139, 300 

1, 439, 900 

82, 000 

81,100 

58, 500 

264,000 

1, 892, 731 

98, 900 

1, 027, 750 

517,950 

Number 

2, 500 

6,000 

1, 664, 152 

37,450 

1, 330, 100 

232,000 

1, 610, 845 

16, 000 

4, 100 

128, 000 

32, 000 

60,900 

46,000 

92,400 

5,000 

982, 750 

486,350 

Number 

20,000 

15, 000 

250 

1, 136 

Number 

2, 500 

314,760 

2,000 

18, 000 

137, 300 

50, 000 

22,700 

12, 500 

43,500 

365,750 

6,500 

73,000 

31,600 

207, 700 7, 545, 343 6, 636, 547 36, 386 1, 080,110 

CIGARS WEIGHING NOT MORE THAN 3 POUNDS PER 1,000 

Florida 

Virginia 

Total 

Number Number 

43,925 

327,050 

Number 

22,925 

323,050 

Number Number 

21,000 

4.000 

370, 975 345, 975 25,000 

CIGARETTES WEIGHING MORE THAN 3 POUNDS PER 1,000 

Second New York 

North Carolina 

Total 

Number 

500 

Number 

1,000 

31,000 

Number 

1, 500 

31,000 

Number Number 

500 32,000 32,500 

District 

Unaccounted 

for Ju]y 1, 

1940 

Removed for 

exportation 

during year 

Exported 

Tax-paid or 

returned to 

factory 

Unaccounted 

for July 1, 

1941 

Number Number Number Number Number First California 5, 590, 000 212,504,800 187, 354, 800 30, 740, 000 Florida 100,000 68.985 168,985 

Kentucky 40,619, 600 202, 984, 100 252, 553, 300 188,000 80, 862, 400 First Missouri 1, 270, 500 1, 270, 500 

Fifth New Jersey 4, 677, 400 46, 444, 400 46, 403, 800 4, 628,000 First New York 230, 000 2,006, 800 1, 892, 000 344.800 Second New York 790, 000 363, 000 1,143, 000 10.000 

North Carolina 19, 232, 520 1, 793, 338, 480 1, 745, 183, 380 1, 544,120 65, 843, 500 

First Pennsylvania 4,180, 000 30,409, 000 30, 109. 000 20, 000 9, 460.000 Twelfth Pennsylvania 90, 000 2, 802, 500 2, 742, 500 150, 000 Virginia 391, 962,800 6, 091, 308, 830 6, 092, 304, 330 7, 517, 000 383, 450, 300 

Total 467, 472, 320 8, 473, 501, 395 8, 361, 215, 595 9, 269,120 570, 489, 000 

CIGARETTE PAPER BOOKS 

Number Number NuMber Number Number 

Connecticut 4, 408, 684 4,408, 684 

Second New York 223, 800 123, 800 100, 000 

North Carolina 381, 600 381, 600 

Total 5, 014, 084 4,914, 084 10D, 000 

CIGARETTE TUBES 

TABLE 23.-Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes from 

fac

9 1

tory in bond, for shipment or delivery as sea stores, fiscal year ended June 30, 

14 

Class of product 

Unaccounted 

for l, 1J 94u loy 

 Withdrawn 

from factory 

during year 

Delivered to 

sea-stores 

warehouses 

Tobacco and snuff pounds.. 

Large cigars number 

Small cigarettes do.... 

• 

519 

6, 216, 000 

50, 716 

8, 500 

1, 3M, 161, 400 

47, 701 

5,000 

, 145, HS, 130 

Class of product 

Delivered tc vessels 

Tax-paid 

or returned 

to factory 

Unaccounted 

for July 

1, 1941 

In foreign 

trade 

In intercoastal 

trade 

United 

States 

Governwent 

Tobacco and snuff pounds 

Large cigars number.. 

Small cigarettes do.... 

2,251 

1, 500 

39, 092, 000 

60 

5, 873, 000 

2,000 

257 

125, 505,000 

12 

346, 050 

954 

44, 553, 220 
TABLE 26.-Dontestic and imported c'garette papers and tubes withdrawn and 

internal-revenue receipts from taxes during the fiscal years ended June 30, 1932, 

to June 30 1941, inclusive 

Cigarette papers 

Tax-free packages, books, or sets Tax-paid packages, books, or sets Fiscal year 

Domestic Imported Total Domestic Imported Total 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

Number 

1,018, 676, 818 

1,458, 496, 429 

1,930, 133, 447 

2, 684, 926, 917 

2, 860, 219, 316 

2, 711, 554, 987 

I, 952, 699, 101 

2,160, 364, 855 

2, 276, 827, 218 

1, 632, 313, 944 

Number 

242, 599, 233 

457, 074, 483 

539, 625, 666 

2, 482, 499 

1, 333, 333 

800, 000 

500, 000 

1,040,000 

400,000 

, 600, 000 

Number 

1, 261, 276, 051 

1,915, 570, 912 

2, 469, 759, 11.3 

2, 687, 409, 416 

2, 861. 552, 659 

ll 712, 354, 987 

1, 953, 199, 101 

2, 161, 404, 855 

2, 277, 227, 218 

1, 832, 913, 944 

Number 

8, 007,826 

9,819, 889 

9, 729, 959 

11, 693, 440 

69, 797, 387 

61, 571, 548 

76, 475, 882 

100,248, 660 

84, 746, 566 

101,191, 086 

Number 

119, 845, 072 

57, 894, 783 

59, 141, 230 

59, 448, 000 

21, 622, 890 

17, 797, 240 

7, 221, 550 

5, 798, 065 

3, 180, 970 

158,333 

Number 

127, 652, 898 

67, 714, 672 

68, 871,189 

71,141, 440 

91, 420, 277 

79, 368, 788 

83, 697, 432 

106,046, 725 

87, 927,138 

101, 349, 419 

130 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 24.-Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes from 

bonded internal revenue tobacco sea stores warehouses,' for shipment or delivery 

as sea stores, fiscal year ended June 30, 1941 

Class of product 

Tobacco and snuff 

Small cigarettes 

Large cigars 

pounds_ 

number 

16, 583, 125 

Class of product 

Delivered to vessels 

Tax-paid 

or returned 

to factory 

Unaccounted 

for July 

In foreign 1, 1941 

trade 

In intercoastal 

trade 

United 

States 

Govern- Government 

Tobacco and snuff pounds__ 

Large cigars number__ 

Small cigarettes do____ 

39.043 

527, 467, 780 

4, 750 

2, 448 

79, 089, 300 

3, 525 

503, 242, 715 

126 

19, 934, 530 

1, 537 

26,278,375 

I There are now 26 such warehouses in operation. 

TABLE 25.-Drawback of internal-revenue taxes allowed on tobacco, snuff, cigars, 

and cigarettes exported, year ended June 30, 1941, by ports, and comparative totals 

for the years ended June 30, 1936, to June 30, 1940 

Cigars Cigarettes DrawExported from port of- Claims and Tobacco mud back allowed 

Large Small Large Small 

Number Pounds Number Number Number Number 

Newport News .. I 298, 250 $216. 03 

San Francisco 6 1,144 5,000 920.71 

Total, 1941 

.... .~M~ 

1, 144 5, 000 __ 298, 250 I, 136. 74 

Total, 1940 7, 420 13, 825 17, 900 8, 450 791, 793 3, 823.77 

Total, 1939 5, 926 10, 500 10, 100 4, 600 550, 948 2, 781. 27 

Total, 1938 10, 684 35, 000 21, 330 9, 880 1, 528, 511 8, 694.2E 

Total, 1937 8,086 106, 425 14, 400 7, 700 7, 227, 518 23, 521. 3( 

Total. 1936 8, 451 74, 000 16, 600 16, 900 7, 587.984 24, 648. 7, 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 131 

TABLE 26.-Domestie and imported cigarette papers and tubes withdrawn and 

internal revenue receipts from taxes during the fiscal years ended June 30, 1932, 

to June 30, 1941, inclusive-Continued. 

Fiscal year 

Cigarette papers-Continued Cigarette tubes 

Receipts Tax-free 

Domestic Imported Total Domestic Imported Total 

Number Number Number 

1932 $85, 332. 63 $1, 559, 909. 32 $1, 645, 241. 95 13, 865, 050 _ 13, 865,050 

1933 134, 050. 20 784, 502.64 918, 552. 84 20, 893, 300 20, 893, 300 

1934 134, 864.73 822, 829.85 957, 694.58 23, 251, 430 23, 251, 430 

1935 162, 116. 24 801, 641.92 963, 758.16 28, 170, 100 26, 170, 100 

1936 982, 625.68 286, 325.30 1, 268, 950.98 19, 172, 450 19,172, 450 

1937 877, 204.09 225, 910. 50 1, 103, 114. 59 20, 429, 660 20, 429, 860 

1938 1, 070, 406. 53 100, 196. 45 1, 17ff 602. 98 18, 495, 700 70,000 18, 565, 700 

1939 1, 403,092. 03 74, 839. 73 1, 477, 931. 76 19, 449, 400 20,000 19, 469, 400 

1940 1, 112, 121. 90 40, 130. 50 1, 252, 252.40 8, 324, 350 8, 324, 350 

1941 I, 405, 724.88 2, 463.65 I, 408, 188. 33 18, 040,180 18,090, 180 

Cigarette tubes-Continued 

Fiscal year Tax-paid Receipts 

Domestic Imported Total Domestic Imported Total 

Number Number Number 

1932 135, 980, 500 140, 596,150 276, 576, 650 $27, 141. 67 $28, 119. 23 $55, 260.90 

1933 25, 896, 200 171, 702, 500 197, 598, 700 5, 252.00 34, 340.50 39, 592.50 

1934 21, 214, 900 56, 048, 000 77, 262, 900 4, 150. 00 11, 209. 60 15, 359.60 

1935 24, 827, 000 36, 613, 000 61, 440, 000 4, 987.40 7, 322. 60 12, 310. 00 

1936___ . __________ 64, 047, 900 614, 300 64, 662, 200 12, 950.00 1L2. 86 13, 072.86 

1937 65, 360,100 150, 000 65, 510, 100 13, 232.40 30.00 13, 262.90 

1938 58, 179, 100 180, 000 58, 359,100 11, 900.00 36.00 11, 936.00 

1939 75, 882, 700 526, 800 76, 409, 500 15, 748.68 105.36 15, 854.04 

1990 137, 144, 300 342, 500 137, 486, 800 27. 187.00 68.50 27, 255. 50 

1941 119, 236, 900 5,100 119, 242, 000 23, 126.00 1.02 23, 127.02 

TABLE 27.-Tobacco products withdrawn for consumption, computed from collections 

from the sales of stamps, fiscal year 1941 

Classification 

Large cigars 

Class A Class B Class C Class D Class E Total 

Number Number Number Number Number Number 

Domestic manufacture 4, 904,084, 389 41, 823, 557 451, 799, 264 21, 922,096 466,158 5, 920,045, 964 

Bonded manufacturing warehouses ' 29, 412, 833 878,086 60,935, 191 15, 965, 624 1,382, 839 103, 574, 568 

Imported-Cuba 6,605 2,300 657,141 1,030,783 2,427,222 9,129,051 

Imported-Other countries_ _ _ 2,418 55,407 8,377 2,007 8,910 77,209 

Total 4,928, 506, 245 42, 759,940 513, 399, 973 38, 920, 610 9, 285,124 5, 527,821, 292 

Philippine manufacture 178, 214, 590 211,706 394,322 72,475 283,405 179,176, 498 

Puerto Rican manufacture.... 742,335 233,500 449,800 2,900 1, 428, 035 

Total 5,107, 463,170 43, 201, 646 519, 199, 095 38, 995, 385 4,568, 529 5, 708, 425, 825 

Large Small Chewing Total 

Classification Small cigars ciga- and smok- Snuff tobacco 

rettes cigarettes big tobacco and snuff 

Number Number Number Pounds Pounds Pounds 

Domestic manufacture 151, 804, 285 1, 977, 728 189, 765, 312, 437 304, 986, 398 38, 326,173 343, 312, 571 

Imported-Cuba 1,600 2,600 330,015 4,060 42 4,102 

Imported-Other countries 64,938 1, 964,031 93, 780 4, 936 98, 716 

Total . 151, 805, 785 1, MA 266 189, 767, 106, 983 305,084,238 38, 331, 151 343, 915, 889 

Philippine manufacture 7,180 297,292 12 12 

Puerto Rican manufacture 132, 785 3, 491, 415 

Total 151, 805, 785 1,885,231 189, 770, 845,190 305, 089,250 38, 331,151 343, 916, 901 

I Manufactured under customs su ion from tobacco imported from any on country. 

Unaccounted 

for July 1, 

1940 

363 46, 318 

4, 750 

,139, 449, 575 

Withdrawn 

from warehouses during 

year 
132 

0 

0 

a 

a 

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44RAAR e00001=VM 

R§R 

04 mhl 

gK 

Ei"01 

0 0 000 

4

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a 

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TOTALS FOR STATES COMPRISING MORE THANONE COLLECTION DISTRICT 

° F " ER 

v04 0 0 

4^ 

REPORT OF COMMISSIONER OF INTERNAL REVENUE y lo le

g 

%"E '3- 

„Fgg 

a 

ggi 

— 

mra 

Vi 

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----a gEnea -2 1,1 

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44o4 g.Ag o g 

- 

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g 1 - 

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— 

g - 4 E. n ERR 5 

No 

2 

.°

DealersIn leaf 

tobacco 

"JR4g 

„Hg 

a.4 

Fi 

Kg 

FP. 

4g-rgTx 

ERHRIF 

g:=1

UR 

- gym 

EgEiEE 

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g 

g 

gl 

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. 

Leaf tobaccoexported bydea lers 

AL IM

g 

4 

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g 

g 

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g 

g 

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W 

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e .: 

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2 g o. 

4 

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.. 

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1 00 ,0 0 4 8.0.040o00.0eoe.o.g. 0 . 0 .00000 § 

a 

e 

- 

In busi 

ness 

Jan.1, 

1940 

.1 22 2^224 -1 4r24 .'42 '2flA""A'AA 

a 

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g.g 

4 r„ 

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g.unaogg4garag.E.gE.E.zgpggoak.g& 

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se 

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gg 44 

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gg 

gg 

gg 

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00 

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REPORT 

E' 

TOTALS FOR STATES COMPRIS ORE THAN ONE COLLECTION DISTRICT 

a 

ba 

a 

OF COMMISSIONE

09 ME 

LI ago 

tfr ,7; 

a-nef 

Fag 

2 

ugh 

Cam 

0. E

s 

4 

g

gas,feces 

.R22 

m 

218182' 

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NEER 

a 

g -44 

- 

co 

134 REPORT OF COMMISSIONER OF INTERNAL REVENUE OS g 4 WPRXEN 

ga a ae-,g ... - g a - _ a 

ICi 'i

ggg3xF4gN 

sts..T.. ger 

ASE 

EA t 

gg 

g 

g 

Sacco import 

l smal

111 311 011 01 - L go ocan

gf, 

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- 

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.. ggr 

RE g 

Cigarman- ufacturers 

e. 

0 

1 "PEE 

..7 S "g N 

U. g 

eggeeg 

2AREE3ER EEE 

.. gg .. g 

RA 

g 

R 

Stemmed leaf imported bYS VM g 

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041 Wtil Ell 

1g$22 21Egia 

g 

rgtaggg 

FEEERNEE 

us, 

la 4

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4 

a e: 

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g= win -o

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gn g N EE g 

Cigarman- ufacturers 

% e 

sgA 2 HELM 

gg4g gg e - a 

REEHERE 

grr g - .. 

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,.; 

1-4 

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leaf 

tgrg 

sZEEE E 

g 

g 

ag 

Eg 

1 g

gREgg ,

g , 

r4

REP 

a 

r 

e 

1 

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Ogg RUMP* REEPE1 

a a

e 

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g - a .zet 

ti- E 

g 

ag 

niNg 

g g 

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a. 

A 

as. 

g Egg ci g 

A 

ereg 

ERB - 

. 

- 

. 

4 

gn gg dif ag 

ggEENE NREREE 

- F-74'' 44 43o, 

e 

cil 

P3 

Dealers in 

leaf 

ee-g g 

lEHE E g gE e ae 

t'eal 

g ar

R gig 

t 

4 am. 

g

12 

g 

ef 

g 

R 

OE 

eg.. 

.54 

A 

a 

,z, A 

00g4

u90a

4u.sazzz.zp.

02 

rflu

p ilnigmerev 

Jar.o.Asaa'=N4Tig.g.gtME.46104 

e'aittFP Z 

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pAfi 

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t210 g4.9.g 

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Ai 
Class 

Number 

in business Jan. 

1, 1940 Unstemmed Stemmed 

Pounds Pounds 

2 

2 

1 

11 

63 

15 

40 

3 

17 

14 

65 

228 

Opened 

3 

64,223 

1,074, 126 

245 

596,431 

2,419, 402 

4,154,427 

133 

106, 531 

7, 618 

15, 130, 357 

9, 851 

6,166, 109 

10, 032, 218 

2 

3 

133 

99,261 

559,852 

397 

f 416, 780 

II 5,677, 123 

173, 639 

1 

4 

9 

27, 178 

267,840 

11, 075 

4, 331, 242 

4, 637, 335 

153, 762 

30, 339 

87.146 

3, 295 

16,185, 656 

2,000 

16,462, 198 

138, 533 

809, 302 

106, 224, 232 

3, 402, 151 

110, 574, 218 

5, 490, 240 

1.668, 836 2, 335, 093 

8 1, 166, 100 

1,101, 977 8,115, 856 

2, 095, 859 

11, 284 2, 287, 743 

325 3, 822, 903 

f 380,945 1 

211,657 J 

3, 375, 032 25,313, 794 

118,023 

27, 555 

681, 624 

52,670 

336, 618 

683. 094 

2,000 

145 

1,901, 684 

1, 660,142 

139, 608 

9,811 

32, 459 

3 610,111 

2, 452, 131 

5, 758, 852 

2, 221, 783 

1,220, 711 

18, 410.353 

2, 575, 633 

 119,084 

1, 293, 712 

3, 578, 283 

35,178, 441 

1,016, 407 

295, 693 

212. 831 

10, 223 

14, 694, 705 

16, 230, 004 

1, 894, 043 

79, 289 

3, 830, 493 

128,315, 647 

163, 714 

134, 283, 186 

136 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 30.-Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1940 

On hand Jan. 1, 1940 

a 

2 

4 

On hand Jan. 1, 1941 

67, 212 

707, 420 

106,138 

8,039, 609 

107,351 

92, 243 

1,578,243 

Total 

Loss 

Gain 

1 Description of c ossification: Class 1, dealers In imported scrap tobacco; cia s 2, dealers n domestic 

scrap tobacco; class 3, dealers n imported and domestic scrap tobacco; class 4, producers of scrap filler tobacco; class 6, reclaMin2 scraps( rom stem ; class 6, manufacturers of fertilizer, insecticide, nicotine, etc.; 

class 7, storage, scraps, etc.; class 8, growers of, and dealers in, perique tobacco. 

2Grown. 

Transferred to o her registries. 

4 Used in product on of nicotine, extract, and fertilizer. 

I Exported. 

0 

a 

0) 

ti 

a 

1 

t 

1„. 

^e 

c/ 

0 e 

o 

.0... 

ro 

0 

042 

Ct2 

A 

5 

6 

7 

8 

Total 

1 

2 

3 

4 

5 

6 

7 

8 

Total 

1 

2 

3 

4 

5 

6 

7 

8 

Total 

1 

2 

3 

4 

5 

6 

7 

8 

8 31,452,817 

Closed 

20 

Number 

in business Jan. 

1, 1941 

10 

61 

15 

2 

17 

14 

69 

216 

6,927, 185 

26,061 

911,553 

90, 167 

1,837, 155 

2, 864, 936 

25, 815, 123 

Removed 

5, 184 

18,246 

695,627 

719, 057 

11,857 

93,873 

646,187 

761,917 

890,041 

Scraps 

Pounds 

333, 717 

591,814 

164,396 

2, 452, 838 

647,833 

79,609 

1, 363,057 

5,633, 264 

In process 

5, 572 

2, 141.827 

7,269,898 

9, 417, 297 

Stems 

28,843 

19, 944 

4, 101, 601 

462,179 

4,614,547 

Siftings 

Pounds. 

107,742 

59,537 

13, 427 

610, 947 

791.653 

Received 

5,698,216 

9, 929, 599 

70 

8,508 

4,229 

1, 292, 514 

7,961,030 

9,266,351 

11,441, 723 

1, 980 

4,047 

19,326 

4,225, 720 

514, 735 

4,765,808 

23, 860, 229 

189, 736 

31,223 

7, 687 

316, 654 

545,300 

14,806,967 

Pounds Pounds 

1, 980 

REPORT OF COMMISSIONER OF INTERNAL REVENUE' 137 

Tobaccomanufacturers 

Scraps,cut- tings,and 

clippings 

EAU A EAE4RA :=.REAA c=f4 AAgARREEEE g 

I Af t: g 1,4g71 g gm -, -,K.,:ggectie 1 

0, .4. 

Stemmed 

gA4 E A R2 ii ARE IR 'REE62E R g 

t-:. -r R -.-f A t• 0;---:- a; e: _,L c.,0 0 

e. 

.. c., 0 

pouirtiotstta 

E§ E A g 1. 8"' HE I c7,00,0 . 

a a 

°rat: 're g 

Cigarmanufacturers 

Scraps, cuttings,and 

clippings 

F.mzediges=*qggRE8mg.ps2a8;,22 

1 -100. -0- -0-- - - .-0.- -- ---.--.--- 

. , 

pominalS 

0,4EEEgAgg REARRMEMEREEn2EARE2RAR2 

E ER*: A-1-r 645-r-sgrg %iispigreg d 

g - • , 

pommelsrta 

JERRER2EimEEEEMEME222EAAAAARE2EE2LEE 

1 7:-Rel va -,gat-,:,=.:wrg5.rt, a ggtigsggggrq g 

N 

• Dealers cituas 

1 g e 

M M E A i E EA PI q g 

- -- - - 

4 Di 

pommels 

.3 EA. 2 i2 E E 2 Bri E RAIEAARE E 

4; .4 

poinuregsaft 

RE NEEE RFA 4 ria.' E2 4AARAAEA A 

Eg EAAA g6 2 Eg2 A2 cu.ece.4t-7n44.1 r: 

. g g 0 d er'itEgrgR R 

, 

, 

t 

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S 

... 

Aniltoq)484KIO 

.

..14(.000....444.9.2 

mriaZaaWat. 

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5 

. 

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° 

4 0•,C1i5 art L4.04' 

1.e2:9g1.1,te..,ttt 

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=, 

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P14"TMt.04 

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oaAri 

423348-41-10 
'1'.\ FIl.I~ :31.-'l'obflGcn material held M' (/umed hy ilealn" in leaf In/,arco a /l.tI cigar and tobacco 71111" lifo cI TI r~;rs on ./fI1ll1ary 1, 1 J, 1. by c"lleclion 

r/islricls a",1 oy . lales -Contiou d ­

Dealer~ ('ig-:1r lllf1nllfru~I~lrl'TS Tllhl\~:w"I nmD.u(r.c.ll.lr.'rs

I'TchQsinq SI)U;n/'/(JX stOlt/liS COllerillp ti,e fiSC'" y,·(tr 

314.752 

9. 7.rif., 7'.)7 

9. ·141. ().I.j 

j~lnUU

'J.!.ISlj a50 

24. ~Hli

:l:J(i 

z. 7~, H.H $\1,7(.1, 

R.62-1 

2.~~

iI.RiO 2 

1171.9-11 

1::\('.1. ~1 .iO. O:ll ,~,~ll(l ~_

POHUtff( PfJu.wL-: 

1W•. ~27 ~fl. 8{j,j 

'. (1J-1 2. Qro 

-j. ~1~.ljl:l 2.'>< '2;' 

107.~12 ~:S i 1.240 

2. Tlro 

10.124. iR5 11.411.003 

. Crtll"'. cut· (1n~~.IlJld {"flsl(lltltnrd 

cJippim:~'

lll£lemmecl SI~mlDerl

Poltnd,~

I U34 

"3.2-10' 

Pound.'t 

2,31 • -;'~l:)

Pmmd8 

I, f~73. 212 

11.\13:1 

15G,9C2 

w,tcmmcd 

42. SO;. 715 11, mn. (107 

37.702.952 11.021.3-10 1-----·1-----1------ 4. M12. 763 693.G67 

1------,----..,.------·-.,--------1-

OCCUPATIONS SUBJECT TO SPECIAL TAXES . 

. 

'1'0\01, WI!. __ ••• _ ••, ·re,lt,l. 1~1O ••• _•.•••••. 

----------------------.,----~---~-----.----~---~----~---------

J>ISTJ<ICT 

TOT.\ L 

lnro 1$)"'" _ .__ _ De<·reflse . 

Tcnlh Ohio ..•. KIl""'nlh' h 0 . ._ ••••• 

F: ".bl,~·n OhIo .... _ ••.•._ .....• ()rIO _lHl _. . • • ....... 

FIl'!<l r,>nnsyl\'anl." __ ••••••.•.••. _ ••._ . T\\clrth Pcnn,d"onl •• • __ ..... . TII'ell(.. hlrd l'ennS~'hll I.u ••• __ . _ . RI1(~I·I·lond ... . __ ..... _ .. .. , nth Cnrnllnn . "ll1lth J):,ko!o . ••• ._ .. 'l'(lnu~ • _•. ..__. 

FJr~! "c lU ....... __ "". __ 

""COnd" (I.'..,

("jill _ 

\',.rJltoll[ 

Vir~tnln . W: <Mottl""_ _. • __ •• .•__• 

Wc,t Ylroni" _. _ . Wj':"('fJn~iTl

\\'ynminl;~ __ • 

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2'3. \119 

3.6 7..1!1~

34 7. 2M ~):} ,'i.14s 

ttu. ni~.tr-itt 01 (ohllllbia ,'nIh ~L\rylllnd for tile 

Wincs 

Willicd spirits 

,VIi",b"r of "aeh class of sp,.c/f!l·/ax payer. p, l' ,.' b" collrCti!ll1 di'lrict~ <1m/ 8/'lt s • l!aT")lt~ (t1P~11/1 nt,c,. " 

('"Ikctlon dislrkt, J or St.alt's 

~'1I1l)mdo

("oT1Dt1.'lieut _. 

Dc!"ware... -. ..------.-----. --­ -. OJ tiel of ColUllIbln 

f' .•rlda -- ­ ." . _ •••--••.---. -_••-­ 'l(:owla­ -._­ _ _­ --_ .. -­ lia\"~ji -_.---.....- -.­ .... 

Idnh" .." • •.. , .• 

Fir.,! Illinois .­ r:i~hlh 111iJ,nl> 

Sl"h' lIf Jilin,,' 

Al bamB • • ··--· • ••--­• .\1 - - . _.- -­ ---.­ ."-rltoua -~. -_._-_ ..... __ . ----­

.\rka':5.1S .. 

Fjr~t CI\Hfornin ....... _ .. --..­ -­ .­

Si. til CllJi!'lfnio .."-­ --' 

Stat<· of Cr,liCornio 
140 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

scuagr000 

1°"INOSOMPIWPWI '3CCNit:.gig.le6 

r.43AE3E3E 

 V UFO

8 ' 669

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sm. 22t:.= 

1 c4" 

... 

Fermented malt liquors 

ITILIOm 

.1091 INU 'omm 

10 nag) saonbll 

mslapap211310cluni, 

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2..3 23E2R 

, 

01 

869 

zza 

Topsse 

I 416 

90 611 

2 69

os 

OZ 

2 90

39$ 

Rem 

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al samap Belau 

.. a 

EC 81 

. 

on 

U$N100 

-En 110111 Pciccam 

'10.7 -77i &taiga!) 110141 

S"gc.T-" ° '" 1 

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F€L40iCi .4 .-7 ..7 

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a Wall 6 924'

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co 0 "4 

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921 LZZ 

9E0 116 

E26 81 

9 968'1 6' 99

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8 ' Z£6

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ttl saapcap Helot! 

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08 69 

911 

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01 101139P arN01 00/0. I 

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Wa$NAN170 

210032p mnbn pupa 

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11.001 110110 9140499H 

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a 

140

ca.5 

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71t2.118? 

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NNE-40 

REPORT OF COMMISSIONER 

8 L90'9 ' 905

'09 nt 

Z 20I'9 265 '

ut7einia 

RMA2 

.... 

CZ ' /Ft

,68 2

t ' TIC6 889'9 92' L

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8 L6 I 

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It 

91 9

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REPORT OF COMMISSIONER OF INTERNAL REVENUE 145 

OLEOMARGARINE, RENOVATED BUTTER, MIXED FLOUR, ETC. 

TABLE 33.-Production and withdrawals of colored oleomargarine, year ended 

June 30, 1941, by collection districts 

District 

On hand 

July 1, 

1940 

Produced 

Withdrawn 

tax-paid 

Withdrawn 

export 

Withdrawn 

free of tax for use of 

United United 

States 

Lost or 

destroyed 

. 

On hand June 30, 

1991 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

Georgia 243 47, 665 8, 096 39, 544 4, 116 1, 152 First Illinois 11,819 1.142, 619 170, 356 191,011 766, 221 252 26, 503 Indiana 12 12 

Kansas 4, 359 320, 311 78, 442 1, 280 237, 7 19 836 8, 393 Maryland 8, 757 I, 034, 501 115, 294 740,325 124,100 2,430 61,009 First Missouri 1, 130 125, 716 5,842 117, 414 3,000 Sixth Missowl 14, 996 14,280 216 Fifth New Jersey 10, 672 568,488 25, 872 282, 579 260, 988 360 9,861 First Ohio 623, 843 1, 332 234, 111 382 424 2, 976 Tenth Ohio 1,190 489, 648 415, 368 46,020 29,450 Eleventh Ohio 11, 313 150 8,6733 2, 490 South Carolina 2,874 73, 691 I, 832 66, 495 8, 288 Second Texas 37,102 5, 358 28, 438 3, 306 

Total 41, 044 4, 989, 410 926, 866 1, 864, 674 2, 075, 586 7, 994 155, 334 

TABLE 34.-Produc ion and withdrawals of uncolored oleomargarine, year ended 

June 30, 1941, by collection districts 

District 

On hand 

July 1, 

1040 

Produced Withdrawn • tax-paid t 

Withdrawn for 

export 

Withdrawn 

free of 

tax for 

use of 

United 

States 

Lost 

or destroyed 

On hand 

June 30, 

1041 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds Alabama 5, 032 293,140 295,192 2, 988 First California 375, 553 28, 927, 925 29, 041, 733 7, 808 I, 494 252, 443 Sixth California 326, 864 15. 257, 903 15, 326, 013 60 257,895 Georgia 20.451 4, 740, 571 4, 729, 188 55 31, 779 First Illinois 1,102, 341 103, 205, 945 103, 145, 221 1, 320 10, 552 I, 151, 193 Indiana 48, 878 37, 593, 572 37, 635, 554 716 6, 180 Kansas 233,538 23, 381, 173 23, 359, 959 254, 752 Maryland 148, 200 9, 667, 790 9, 669, 924 78 145, 988 Michigan 615,478 16, 344, 888 16, 806, 608 154, 756 Minnesota 12, 718 897,322 860,040 

First Missouri 36, 052 8, 150, 756 6,147, 748 39, 060 Sixth Missouri 27,018 2, 071, 207 , 2, 060, 479 5,526 33,019 Fifth New Jersey__ ... 300, 692 25, 397, 896 ' 25, 568, 548 13, 245 118, 747 First Ohio 382, 057 24, 514, 899 24, 729, 846 167, 105 Tenth Ohio 53, 930 7,834,642 7,804, 258 84,114 Eleventh Ohio 187,662 17, 231, 614 17, 238, 316 180,950 Oregon 18,583 401, 259 419,892 

South Carolina__ 17,772 1, 814, 958 1, 816, 210 16,020 Second Texas 229, 764 13, 768, 587 13, 897, 636 1, 050 99, 695 

Total 4,138, 531 339, 945, 528 340, 550, 313 1, 320 7, 808 32, 776 2, 991, 852 
146 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE] 147 

TABLE 35.-Production and withdrawals of oleomargarine (colored and uncolored), TABLE 38.-Summary of production and withdrawals of oleomargarine (colored and 

year ended June 30, 1941, by months uncolored), years ended June 30, 1932 to 1941 

Month 

Colored 

Produced Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

free of tax for u of 

United 

States 

Lost or destroyed 

1940 Pounds Pounds Pounds Pounds Pounds 

July 213,571 21,254 104,115 84,032 204 

August 186. 270 21, 202 97,159 74, 428 940 

September 216, 868 25, 432 94, 815 88, 392 256 

October 217,069 30,978 109,156 71, 665 256 

November 281,038 35,060 151, 810 84,976 

December 239,990 38,080 125, 719 68,788 

1941 

January 404, 451 41, 838 254, 931 66, 053 48 

February 338, 048 39,484 220,988 107, 888 

March 291,887 40,397 199,733 73, 501 1,196 

April 412,907 44,313 227,420 91,330 2,684 

May 1, 388,173 47, 782 135, 706 286, 382 

June 300,140 41,048 143,122 980,151 2,430 

Total 4, 489, 410 426, 866 1, 864, 674 2, 070, 586 7, 994 

Uncolored 

Month Withdrawn 

Produced Withdrawn 

tax-paid 

Withdrawn 

for export 

free of tax for use of United Lost or destroyed 

States 

1940 Pounds Pounds Pounds Pounds Pounds 

July 21, 812, 715 22, 050, 260 2,890 

August 21, 486, 149 22, 480, 483 2,006 

September 26, 367, 800 25, 693, 776 

October 29,948, 696 29, 469, 071 6,100 

November 29, 725,440 30, 824, 038 1,096 

December 32,221, 051 31. 083, 974 597 

1941 

January 33, 625, 940 33, 789, 497 

February 27, 770, 007 27, 831, 809 7,808 2, 679 

March 33, 605, 688 34, 291, 371 1, 320 2, 031 

April 31, 786. 746 30, 538, 783 880 

May 26, 306, 522 26, 809, 052 709 

June 24, 788, 776 25, 678,199 13, 789 

Total 339, 445, 528 340, 550, 313 1, 320 7, 808 32, 776 

Year 

Colored Uncolored 

Produced 

Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

tax-free 

for use of 

United 

States 

Produced Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

free of tax 

for use of 

United 

States 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

1932 4. 636, 218 2, 090, 578 1, 666,182 910, 749 210, 706.942 210, 450. 678 15 

1933 2, 813, 198 500,021 1, 570, 811 768,714 218, 229, 634 215, 990, ON 180 

1934 2. 889, 095 462,590 1. 594. 168 631, 665 240, 497, 599 240, 410, 117 240 

1935 2,904, 971 808, 439 1, 408, 827 680.921 350, 915, 555 350,113, 863 222 

1936 2, 773, 194 527, 419 1,471.424 781, 292 368, 964, 422 368, 986, 799 330 

1937 1, 967, 206 673, 307 583. 610 740,960 387, 297.043 386, 775, 872 

1938 1, 649, 356 624.362 200, 401 837, 588 413, 754, 759 413, 560, 893 

1939 1, 380, 891 354, 991 155, 748 887, 925 331, 591, 928 331, 701, 894 300 3,000 

1940 1, 859, 731 302, 149 649.489 896, 387 301, 857, 670 301, 599, 496 1,830 

1941 4, 489, 410 426, 866 1.864, 674 2,075, 586 339.445, 528 340, 650, 313 1,320 7,808 

Total_ 27,163, 270 6, 770, 722 11,165, 334 9,191,787 3, 161, 260, 080 3, 160, 140,011 4,437 10,808 

TABLE 37.-Materials used in the manufacture 

uncolored), year 

Pounds 

Babassu oil 1, 918, 662 

Butter flavor 29 

of o eomarga e (colored and 

ended June 30, 1941 

Pounds 

Lard stearine 240 

Oleo oil 15,982,604 

Coconut oil 16, 525,100 Oleo stearine 3, 369, 548 

Color 4, 026 Oleo stock 1, 336, 514 

Corn oil 298, 642 Palm oil 286, 451 

Cottonseed oil 136, 035,181 Peanut oil 1, 893, 384 

Cottonseed stearine 12,680 Salt 12, 547, 879 

Derivative of glycerine 843, 959 Soda (benzoate of) 137, 250 

Diacetyl 3 Soya bean oil 92,152, 569 

Emulsol 10 Soya bean stearine 3,059 

Lecithin 144, 625 Soya flake 15 

Margo 593 Vegetable gum 8 

Milk 64, 417, 645 Vitamin concentrate 15,478 

Monostearine 154, 559 

Neutral lard 6, 863, 981 Total 354, 925, 694 

TABLE 38.-Production and withdrawals of renovated butter, year ended June 30, 

1941, by collection districts 

District 

On hand 

July 1, 

1940 

Produced 

Withdrawn 

tax-paid 

On hand 

June 30, 

1941 

Alabama 

Georgia 

Maryland 

Total 

Pounds 

185 

15.085 

4, 102 

Pounds 

1, 628,062 

812,829 

342,618 

Pounds 

1, 627, 433 

815,832 

338, 080 

Pounds 

814 

12,082 

8,640 

19,372 2, 783, 509 2, 781, 345 21,536 

TABLE 39.-Summary of production and tax-paid withdrawals of renova ed butter, 

years ended June 30, 1982 to 1941 

With- WithYear Produced drawn 

tax-paid 

Year Produced drawn 

tax-paid 

1032 1, 129, 299 1, 117, 784 1937 2, 737, 181 2, 769, 853 

1933 1,002,131 1,008,327 1938 2, 435, 499 2, 381, 270 

1939 1,213 166 1, 205, 475 1939 2, 906, 117 2,925,272 

1935 1, 844, 561 1, 851, 245 1940 2, 706,852 2, 735, 433 

1936 2, 252, 920 2, 218, 951 1941 2, 783, 509 2, 781, 345 
148 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 149 

TABLE 40.-Production and withdrawals of mixed flour, year ended June 30, 1941, 

by collection districts 

PRODUCED 

District Barrels Half 

barrels 

Quarter 

barrels 

Eighth 

barrels 

Total 

pounds 

Stock on hand July 1, 1940 2, 590 8, 760 2, 568 639, 667 

First California 16, 425 98, 788 54, 015 5, 683, 029 

Illinois 986 1,233 

Iowa 31, 864 1,317, 284 

Minnesota 27, 824 2, 726, 752 

Sixth Missouri 

Twenty-eighth New York 27, 774 2, 721, 852 

Oregon 43,189 160,027 23, 747 10, 534, 355 

Utah 3, 328 5, 949 611, 706 

Washington 376 34,745 41,507 5,081 5, 159, 732 

Wisconsin 1, 021 100, 058 

Total 376 154, 306 338,135 83, 829 28, 855, 995 

Grand total 376 156, 896 346, 895 86, 397 29, 490, 662 

WITHDRAWN TAX-PAID 

First California 

First Illinois 

16, 029 97,179 49, 775 

986 

5, 515, 791 

1,233 

Iowa 31, 906 1, 318, 898 

Minnesota 27, 836 2, 727, 928 

Sixth Missouri 0 0 

Twenty-eighth New York 27, 657 2, 700, 406 

Oregon 43, 841 162, 568 24,969 10, 711, 951 

Utah 3,918 5,945 620,334 

Washington 371 35, 643 42, 146 5, 035 5, 273, 792 

Wisconsin 1,021 100, 058 

Total 371 155, 445 339, 739 80, 265 28, 979, 391 

Lost or destroyed 57 5 5, 874 

Stock on hand June 30, 1941 5 1, 394 7,151 6,132 505, 397 

Grand total 376 156, 896 346, 895 86, 397 29, 490, 662 

TABLE 41.-Production, importa ion, and withdrawals of p aying yards, by months, 

year ended June 30, 1941 

Month 

On hand 

July 1, 

1940 

Produced 

. 

Imported Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

free of 

tax for 

use of 

United 

States 

Lost or 

destroyed 

On hand 

June 30, 

1941 

1940 Packs Packs Packs Packs Packs Packs Packs Packs 

July 12, 809. 188 2, 340, 770 1, 165, 990 321.458 3,600 10 

August 3, 451, 878 1, 581, 948 385, 984 38 

September 3, 237, 244 3, 038, 959 121, 311 443 

October 3, 903, 216 3, 690, 066 140, 593 3, 888 802 

November 3, 439, 986 4, 999, 060 253, 008 4,032 210 

December 3, 651, 047 3, 929, 796 255, 276 14,100 202 

1941 

January 4, 359, 880 4, 809, 976 128,693 63,360 180 

February 4, 718, 608 3, 817, 673 209,088 3,888 228 

March 4, 997, 799 4, 156, 259 229, 469 61, 632 144 

April 4, 829,818 3, 426, 955 292,634 8, 712 144 

May 5, 247, 290 5, 242, 462 615, 742 17, 424 62 

June 4, 676, 357 4, 102, 510 167,200 10, 368 520 

Total__ .__ 12,809,188 48, 853, 893 43, 061, 104 3, 110, 456 191,004 2,983 15,297, K4 

ALCOHOL, DISTILLED SPIRITS, BEER, ETC. 

TABLE 42.-Ethyl alcohol: Production and withdrawals, by months, fiscal year 1941 

[Proof gallons 

Month Production 

Withdrawals 

Total Tax-paid 

Tax-free 

For denaturation For other 

Purposes 

July 22, 957,045 22,012, 269 2,019, 762 19,621, 431 371,076 

August 24, 094, 281 22, 738, 660 1, 423, 507 20, 917, 775 397, 378 

September 21, 559, 290 26, 687, 288 2, 045, 917 24, 212, 614 428, 757 

October 23, 595, 180 28, 236,674 2, 359, 606 25, 556, 712 320,356 

November 23, 346, 835 26, 528, 647 2, 958, 601 23, 139, 967 430,079 

December 23, 762, 244 29, 670, 226 2,127,850 22, 055, 847 486, 529 

January 24, 223, 923 21, 743, 795 1, 744, 226 19, 934, 059 565, 510 

February 22, 029,106 21, 375, 002 1, 766, 786 19,069, 887 538, 329 

March 25, 654, 684 26, 896, 844 2, 735, 662 23, 705,158 456, 024 

April 26, 248, 455 25, 933, 286 2, 448, 613 22, 788, 781 695,892 

May 29, 650, 922 30, 776, 464 3,012, 275 26, 555, 028 1, 209,161 

June 32, 223, 502 31, 905, 940 3, 223, 718 27, 830, 002 852, 220 

Total 298,845, 917 309, 505, 095 27, 866, 523 274, 887, 261 6,751,311 

I The unit of measurement is the proof gallon, a legal standardpreseribed for tax purposes. (See secs. 2800 

and 2809, Internal Revenue Code, 1939.) The proof of spirits is twice the percent of the conten , by volume, 

of ethyl alcohol. Spirits containing 50 percent ethyl alcohol by volume are, accordingly, 100 proof. A 

standard proof gallon is a wine gallon (231 cubic inches) of 100 proof spirits. The number of proof gallons 

contained in a wine gallon of spirits of proof other than 100 Is proportional to the alcoholic content. For 

example, 1 wine gallon of 190-proof alcohol is equivalent to 1.9 proof gallons. (The units described are based 

upon spirits at 60 degrees Fahrenheit, at which temperature ethyl alcohol has a specific gravity of .7939.) 

2 Includes 1,484,412 proof gallons transferred to denaturing plants by alcohol plants not having bonded 

warehouses. 

TABLE 43.-Ethyl alcohol: Plants and bonded warehouses operated, production, 

withdrawals, warehouse losses, and stocks remaining in bonded warehouses June 30, 

by States, fiscal year 1941 

State 

Number 

of plants 

operated I 

Number 

of ware- ho s 

operated I 

Production Withdrawals Warehouse 

losses 

Remaining 

in bonded 

warehouses 

June 30 

California 

ODN.. 1-* el. IC MCONAti 

6, 207, 289 6, 818, 761 21, 270 511, 391 

Colorado 45,247 306 15,088 

District of Columbia 564, 921 557, 965 3, 450 

Hawaii 227, 326 228, 324 662 42, 340 

Idaho 11, 758 15, 757 

Illinois 9,874,273 20, 287, 721 49,561 1, 083, 374 

Indiana 26, 030, 795 39, 752, 643 168, 500 1, 131, 733 

Kentucky 9,234 9 5,400 

Louisiana 52, 235,857 32,995, 657 43, 374 157, 927 

Maryland 28, 313, 632 30,093, 872 41, 466 1, 205, 031 

Massachusetts 7,050, 599 7, 764, 704 11, 409 60, 433 

Michigan 330,240 1 14,823 

Missouri 448,178 12 19,812 

New Jersey 99, 779, 046 48, 994,156 89, 010 1, 854, 036 

New York 635,129 2, 449 

Ohio 948, 749 1, 356, 110 3, 454 385,196 

Oregon 26, 241 

Pennsylvania 65, 197, 894 64, 989, 934 127, 554 Z 756, 556 

Puerto Rico 2, 571, 864 3, 067, 636 13, 365 490, 853 

Texas 911, 833 890, 720 

Virginia 257,114 257,114 

West Virginia 48, 495, 005 49, 670, 560 124, 254 611, 373 

Wisconsin 167, 512 333, 192 484 43,536 

Total 39 62 298, 845, 417 530B, 505, 095 I 697, 140 810, 392, 352 

I Number operated during any part of the year. 

One experimental plant. 

'Includes 1,484,912 gallons transferred to denaturing plants by alcohol plants not having bonded warehouses. 

In addition, 47,451 proof gallons lost in transit. 

e. Stocks in transit between bonded warehouses and quantities In receiving tanks of alcohol plants awaiting 

transfer to bonded warehouses not computed. 

[Quantities in proof gallons] 
150 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 151 

TABLE 44.-Ethyl alcohol: Withdrawals, tax-paid and tax-free, by States, fiscal 

year 1941 

[Proof gallons] 

State Total withdrawals 

Tax-paid withdrawals 

Tax-free withdrawals 

Total For densturatlon 

For hospital and 

scientific 

use 

For use of 

Unite

s 

 d Stat e 

and subdivisions 

For ' export 

California 6, 818, 761 737,119 6, 081, 642 5, 519, 699 201,363 359,964 616 

Colorado 45,247 21,866 23,381 21, 874 1,507 

District of Columbia__ _ _ 557, 985 7, 856 550,109 512,052 34, 285 3, 772 

Hawaii 224, 324 19 228, 305 228, 185 111 9 

Idaho 15,757 15,757 15,757 

Illinois 20, 287, 721 8, 236, 627 11, 351, 094 11,000, 715 302, 044 20,120 28, 215 

Indiana 39, 752, 643 6, 063, 395 33, 689, 298 33,096, 299 62, 992 527, 080 2, 877 

Kentucky 9, 234 2,125 7,109 7,109 

Louisiana 32, 935, 657 568, 975 32, 366, 682 31,940. 796 110.454 314, 805 627 

Maryland 30, 093, 872 587, 644 29, 506, 228 28, 381, 691 256, 620 867, 837 80 

Massachusetts 7, 764, 704 887,614 6, 877, 090 6, 646, 248 155, 290 75,552 

Michigan 330,240 229,673 100, 567 100, 440 127 

Missouri 448,178 328, 983 119,195 76,676 42,519 

New Jersey 48, 994,156 1, 915, 933 47, 078, 223 46, 467, 487 478,829 83, 347 48, 560 

New York 636, 129 636,129 636,129 

Ohio 1, 356,110 1,162, 670 193, 440 11, 248 181,901 291 

Oregon 26,291 26, 241 

Pennsylvania 64, 984, 934 6, 369,155 58, 615, 779 57, 221, 860 105,867 1, 250,187 37, 865 

Puerto Rico 3, 067, 636 I 3, 067, 636 2, 266, 248 1, 134 274, 697 

Texas 890, 720 890, 720 890, 720 

Virginia 257,114 257,114 257, 114 

West Virginia 49, 670, 560 6, 332 99, 664, 228 49, 511, 258 3, 538 149, 891 591 

Wisconsin 333,192 14, 296 318, 896 283,755 35,141 

Total 309, 505,095 29, 866, 523 1 281, 638, 572 9 274,887, 261 2,135, 668 3, 696, 008 394,078 

Percentage of total withdrawals 100.0 9.0 91.0 88.8 0.7 1.2 0.1 

1Including 476,182 proof gallons for beverage purposes, 45,669 proof gallons for medicinal use, and 3,706 

proof gallons for industrial use. 

s See footnote 3, table 43. 

TABLE 45.-Ethyl alcohol: Materials used l in production, by kinds and by States, 

fiscal year 1941 • 

State Molasses 

Grain 

Other materials 

Corn Malt Other 

California 

District of Columbia 

Gallons 

8, 530,083 

798,858 

Pounds 

635, OM 

Pounds 

95,714 

Pounds 

1,210 

Gallons Pounds 

Hawaii 1,831, 381 

Idaho 2,775 14, 652 3 686, 585 

Illinois 788, 208 89, 652, 530 8,324,126 3, 149, 195 15, 066 

Indiana 55, 590, 775 4, 560, 187 2, 572, 734 • 5 15, 364, 600 

Louisiana 59, 352, 004 

Maryland 27,461,841 

Massachusetts 6,944, 475 

New Jersey 58, 632, 014 

Ohio 7, 355,040 856,800 188,160 

Pennsylvania 59, 641, 618 17, 474, 490 2, 520, 282 6, 128, 418 

Puerto Rico 3, 749, 425 

Texas 5 652, 964 

Virginia 6 15, 365, 060 

West Virginia 1 39,747,356 

Wisconsin 

Total 

919,091 1,110, 284 1, 265, 953 2, 245, 793 

221, 820, 392 171, 818,129 17, 623.062 2 12, 054, 359 I 57, 596, 301 18, 313, 394 

1For those plants in which ethyl alcohol is a by-product of the bu yl process, only the estima ed amounts 

oi materials allocable to ethyl alcohol have been included. In 3 plants, where other products were produced 

in addition to ethyl alcohol it was not possible to allocate the materials to each product, and accordingly all 

materials used at such plants are included. Figures do not include materials used at experimental plants. 

2 Pineapple juice. 

Potatoes. 

Diamalt. 

s Ethyl sulphate. 

Cellulose pulp and chemical mixtures. 

37,382,100 gallons of ethyl sulphate and 2,365,256 gallons of crude alcohols mixture. 

A corn sugar by-product. 

Includes 12,037,907 pounds of rye, 8,758 pounds of barley, 5,894 pounds of bran, and 1,800 pounds of rice. 

Nom-In addition to the materials reported above, 59,602,277 gallons of molasses, 883,382 pounds of corn, 

467,620 pounds of rye, and 257,858 pounds of rice were used at industrial alcohol plants in the production 

of products other than ethyl alcohol. 

TABLE 46.-Ethyl alcohol: Production, by kinds of materials used, fiscal year 1941 

Kind of material 

Quantity used Alcohol produced 

Amount Unit Proof gallons Percent 

of total 

Molasses ) 220, 898, 526 Gallons 210, 426, 805 70.41 

Ethyl sulphate 53, 399, 664 Gallons 69, 902, 860 23.39 

Grain 199, 119, 727 Pounds 17, 532, 441 5.87 

Pineapple Juice 1, 831, 381 Gallons 227,326 .0S 

Cellulose pulp, chemical and crude alcohols mix -

ture: 

Crude alcohols mixture 

Cellulose pulp and chemical mixture_ 

2, 365, 256 

15, 365, 950 

Gallons 

Pounds 575, 730 . 19 

Other mixtures: 

Molasses 921,866 Gallons 

Corn sugar by-product 2, 245, 793 Pounds 

Malt 1, 265, 953 Pounds _ 

Corn 1,110, 284 Pounds 180, 315 .06 

Potatoes 686, 585 Pounds 

Barley 8, 758 Pounds 

Bran 5, 891 Pounds 

Total 298,845, 417 100.00 

I Additional amounts used in combination with other materia s included under "other mixtures." 

2 Includes 1,045 proof gallons produced at an experimental plant from materials not shown. 

TABLE 47.-Ethyl alcohol: Production, tax-paid nil .thdrawals, withdrawals for denaturation, and stocks on hand June 30, fiscal years 1934-1941, inclusive 

[Proof gallons] 

Fiscal year ended June 30- Produced Withdrawn 

tax-paid 

Withdrawn 

tax-free for 

denaturation 

Stocks June 30 

1934 165, 103, 582 16, 154, 614 137, 416, 765 27,970, 640 

1935 180, 645, 929 16, 990, 972 163,009, 786 25,252, 756 

1936 196, 126, 236 24,052, 532 172, 478, 748 21, 300, 340 

1937 223, 181, 2H 32, 289, 650 179, 324, 373 28, 464, 541 

1938 ROL 033, 858 29,976, 609 164, 263, 210 32, 046, 632 

1939. 201, 017, 596 22, 150, 969 175, 644, 641 30, 810, 351 

1940 243, 727, 756 24, 344, 306 223, 321, 704 21, 798, 554 

1941 298, 895, 417 27, 866, 523 274, 887, 261 10, 392, 352 

TABLE 48.-Denatured alcohol: 1 Plants operated, product withdrawals, and 

stocks on hand June 30, by States, fiscal year 1941 

[Quantities In wine gallons 9 

State 

Number of 

plants 

operated 5 

Completely denatured Specially denatured 

Production Withdrawals 

On hand 

June 30 

Production 

Withdrawals On hand 

June 30 

California 

c0 . 1-1 1-1 0,01 01 N wk. 

179,012 172, 781 1,382 3, 126, 555 3, 125, 488 23,765 

District of Columbia._ 4, 775 7, 456 5, 408 499,942 498, 993 9, 100 

Hawaii 2,258 2,082 1,818 38,960 36,037 2,867 

Idaho 4, 197 4, 191 5, 231 5,304 

Illinois 1,603, 201 1, 610, 134 447 5, 087, 276 5, 101, 422 12,486 

Indiana 2, 989, 884 2, 989, 876 15, 222, 024 15, 237, 600 32.409 

Kentucky 726,307 727,108 15, 781 

Louisiana 1,777,108 1, 778, 080 3,868 15, 004, 021 15, 024, 089 5, 013 

Maryland 4, 091, 136 4, 066, 753 36,327 13. 153, 280 13, 181, 049 33,392 

Massachusetts 348, 013 366,444 7,416 3, 885, 287 3, 896, 883 24, 163 

New Jersey 756, 808 768,129 42, 751 24, 781, 223 24, 775, 857 68.919 

New York 148, 343 158, 906 207, 848 ' 208, 855 

Pennsylvania 5, 475, 972 5, 497, 388 335, 364 25, 773, 222 25,759, 658 53.593 

Puerto Rico 249, 805 251, 586 540 1, 046,173 1, 031, 614 22, 847 

Texas 486, 975 342, 862 143, 948 

Vermont 3,565 288 3,259 

Virginia 136,000 136,000 

West Virginia-__-_____ 46,070 45,996 4 26,368, 955 26, 948, 552 176,972 

Wisconsin 4,592 1,080 3, 510 281,917 282, 156 1, 965 

Total 43 17, 676, 172 17, 720, 882 438,835 135, 834, 261 136, 319,810 630,974 

1 Included in denatured alcohol are 1,796,185 tax gallons of rum and 82,917 tax gallons of other spirits 

transferred from distilleries for denaturation. The number of wine gallons is not reported. 

Standard United States gallons of 231 cub i c inches. 

Number operated during any part of the year. 
153 

NnrnberrJf On h/lful dc.nlcrs Hoc.,i\-,·<! HcmO\lcd June 30 (Jr~"r;~1.irlg' l 

2 W.Z2il 10.003 :J.353 1 65. a76 6-1,367 8,266 

I 12.171 12.603 2,1(;0 

5 I,OOO.:1!]l I, 051, O-JI) 'f5.!J1>S 1 4.6.231 ·W.5.~ 1,146 

2 lH,02S U:~.!H.; 14.4-13 7 32i.016 32,. -Ial n~42

• 110,417 11·1, G03 7, 0117 3 ,2.303 71,743 0, :;23 1 I':l. So." 172.93G In. 957 ·1 1.433.307 I. 5.;Q, tlnl 70.0H 0 2(11. :\70 2t(;, :~jt} 23.293 0 ~):i.jm 2,~)·1. Of'S 17.263 1 :lr'.13G 3J,!j'd .t~16

1 V,I02 10. J:l8 1, ,j42 I 13.&23 1~. 70s !.272 I 0,25-1 7.137 ),607 1.4M Z,254 

Q' , .... vv.> '0\1 I •• If... Y31 2711. ~H3

JllDllllry I Fl'lJrUllr~' I '~larC!l I A"PriJ1 !vi",. Junu I Total 

HEPOR1' OF COMl\:lISSIONl'jR OF INTERNAl, REVENUE 

Formu!:l 

State 

1'.\JlLB 52.-Speeially denat'ared aloohol: Withdrawals, by leadillg lff)rmulas and by . months, fiscal year 19.1J 

IWJoe gallons) 

• Withdrllwals for the ycar excc,X11n~ 100,000 ~allOl\s ranked in ordl'r or total wi.bdrawals. 

- Formula Jllly Augu-St S"ptrmb<ir I Olltober November D~')l!lbcr

"-Il ....... _............. :!, 2(l7, tl.'iO 2, ~~3.c,()2 2, ,2'3. (01) Z. 601. 6'17 2, 778.392 3.00-1, 459 j - .. .• ._____ 2, :103, 010 2.287.7:;'1 :l, :l:J8, 171', 2, $74. 958 2', O:l:i, 136 :l, :JID, ()I;lj 

',Q--­ -: __ 2,21O,OM 2.Zlr.,OI2 2,36~,'i:lG 2,505,7107 2.S5U2O 2,360.382 

js----~..-------­ -------­ 42S,52l ~':j.O\ll ·1:i1.221 --I80.8f>S fm.G92 4~2,917

:l~::\~---...-_·------·· ·· ~8,".~.'\ 4:j~,~ tJ6.10' 4!6.~~\ ~,~? ~~.!!67 40 _.. __ • __ .;H, 4,7 r.,,32S 280.5,3 21;\7.•~S 271,0,2 ••­.•,6-17 

IL·:.. ..--.-•• ­ -.. -­ _­ 2'lO.l:l1 270.0-10 Z56.5~14 207.753 211.31:1 1~1'!l:!? 23-D • .. Ifo9,01l5 2:,l-I,SIl 218, I.)(J 20~.86-1 209,5f>8 1/·1,8,;9 

4 .. __ _._ ------ .. --­ H9.2!15 t72.2-I8 185,3S1 173.555 17,',045 10".~93 a-A " ......__ S7,IOil 111.971 J5-IJ>S6 118.181 1l8.·1R$ J63,63O ~f' . • __ _. ._.. __ 70,2'.!lI %,077 9,,3-81 ,~7.3:l5 ~1.370 139.76" 

:,~-i.- ..---_ _..-......... 113,1(10 101.287 126.,\01 117. H6 120.978 12'.la7 i.1-A • 2(j. ·125 -la, 438 101,321 71,136 :;G.276 88,IIJ1 

:l'.1-C .... __ :HI.Z57 5-'l.ll58 75. 90ft 7.;.(i.~9 88.!l07 IH,40S :l8 ._ 2l.1r.0 411,300 -I~,7f,1l 51.000 73,6.'1() St.!O)(1 

31-:­ • 18,S13 38.289 107,-112 30.803 26.006 78.658 

12-.\ ..... .•••_ __ -­ __ 36,318 32.07'; :;0.91J 36.307 '15.215 60.92\ 

31'-8•• __ .. __ •• SO, IIII 31i,M.1 5ll,36\ 51.131 J2.816 37.0tl 

1'.H.I __ 10.3'11 2-1,[>J6 2'2,07-1 ao.7!)9 27,283 10.gU :lO • ___ •. .. _ 9.;;82 15,,~ 12.!VJO 10.507 15.225 JO.910 

.\11 other> __ __ 56. ,94 M.295 62, 87.S n. 026 20.036 oIfUl3 

'I'om\. __ __ • 8. nG. 618 9. -In:l ~~If! 1i. (!r,il fl[,r, , 10. r'89 705 11. 2111, l~ I J 1.127. '106 

<"nllf"ru 1,,-- _ 

___~)l__ .. , ..__ ~~_~ __ . _ . .._ •• _, _... ~~. A~ .....hft 

I :-uOlh.'r o!'<'mllull dnrlul( nny IllUt "I the YClal'. 

U:::118--H--ll 

T M:lLJo: 53.-Specially denatured alcohol: Operations of bonded denlers, by States, 

jiseal year 191,1 

[Quantities ill winl' gallons! 

2-11 .... _. 2.301.91l 2.1lO0.·IZtl I 3.:108.5-17 3"102.430 ·1.f'48.670 1 5•091)..153 37.651.823 1.. 2,309.61-1 2.123.2103,700.375 2,llSS.f,s2 3.J-I0,881 J.749,6!lO 35.216.087 

211.. 2,927,539 2.9H,653 2,ll3(),ol08 a,OI9.9Z! 3.213.073 3.\21.271 32,082,7:12 

18_ .. ._ 52ll, 950 4'17. ~l8 I 5[,1,146 WS.2\)3 429. 311l 400.393 5.098. .142 

35--A .. _ 42/l,03'1 317,&27 300.56:; 4IG,2ll6 '191,7(;\)1 11H.337 r.,151.;174 .0 • 167,302 2lIG.I-I'11 2lH,2:H 2(;,.675 310,;,;]lS 2!15,700 3.1-15,278 

I... . __.. 187,778 180. ·1:JI1 I' :lSii, 1.36 282.852 298.620 342, HI) 2,926.0,52 

'.!:HI _ •••••••• 1:1:1,620 19t.ll.1t 235, ,H2 2:i2.085 223, 1)~7 277, 910 2. [,21,012 4.. .. .. __ • 140.400 IH,5aJ 1G8,90J 108.681 10:;.806 193.902 1.93'1,308 

3·A ....._.. HlI.82'.! 127.21J l:lO.58.' 142, -507 16r..8tl\l 119, 102 J, 571, ~94

~12.... ..;.. .. __ :~ In070 144,035 HI.610 178,470 J62.2J2 t62, 227 1.502.300 2:~.\ .. S.~.366 117.·178 l:l2.:J.1~ 116,~OO 1-I1.03t 138.3t2 1.·131;,598 

13-.\ .. ..... [',.008 al].Pl0 77,(174 60,987 77,542 \l(),2t6 795,8-13 

:Iii-c'oo __ .. __ •• "q. o-I~ r,0,2!J8 7'J.314 58_ 000 70.tm M.I'79 781,271 2S~ ..... 32.73-3 41,027 S(I,O:;O 73.147 .''',63., n.6W mil. 712 

3. _. __ _ 23,-14-1 61.995 70.052 33.47l! 6-1.710 M,S35 uOS.o86 

I~-A .. _ 2Il.1O~ .Jr•• 027 fol,316 ,13,389 60.:!3S r',,3~6 5-1\).009

:;:;-.u 35.612 30,6-17 30,982 ·js,tlo ·12,:183 15.719 ,SOS.lfJO 

:i'll-B. -­ 1J •.'.10 10. HI W,:l7:i I 18,000 l:l.571 21i.852 n~.887 JO . _ .... II. :157 I l:j.2118 IJ.3Hl 13.314 n.428 J5. GSt J5-1.031 All otl"'r~_ ___ 47. 1.00 37. 14.6 6-1. ;;'1 ;\1, 8il2 M. SFAl "5. oro tl4S.895 

TotaL.~ I 9,840.0-;:; 10. 100.821 12, 8Ir•. I~l I 12. J2i> OSI 13.000_ 35[, 14,9-11_ 871 13(). 310. 810 

'1'otlll 

p,aI$ 

III, 111 

23:1. fJ8T '~l,271 :1,836 

3, 1~S.:ml

11,IGI :lO 

1\,\l7P 

I. 

p.

-­13<l,31~'10

~. M6 I I., 7:lU, ll82 

Formula I I .\lIlcun& 

Sp<lrlally 

denatured 

1'. ;7;~1

Amount 

2H\ 77r~

OornpletcJ J' 

denatured 

FrJrrnuln: 

}'orruuln I 

1l 12 11 HI 

ooa.;~--J.10-1 ---;;~I---;-;; Sit O~1 \7,llf>3 -10il I, 7~", .j Ill, ('<j2 78.7'.'3 000 .. _. :1,0117.718 

71 277 ~~, -10-1 ,j,410 2. ~:H ~. \'111. UJ :11(1,121 11.600 :3.'176 1,~lG :l,:~.!\I,olO6

J~I. 299 30. f>3~' 710 l.~;, I,UILm :.-n~. 22; :. ·1Il1 _. __ .. _ 11;00 115.,271 

120,633 :!.51ti __ . _ __ .. 4r.o.\d 

J71\.m 2\1.181 •• _ _. &I,lli' 

It'S. (tal 7. 97~ ~. •• :1":1, UlI 20,\ 3[~1.700 1I'l!l.&2I 

3011. lSSJ u. ~n __ ___ __ !ISs, 1115 

'J.II}(),~J

Amount 

13 

!la.67lS 

863. 77.r 

, 

~. i>fJ.~. b:!3 

.J, 208.408 

2. LOIi, 0..' er.s,OG\I 

'151.11V9 

321, SS3 314. lUI 

11~.OS7

715.37Il 

l»J.~

}'ormulo 1 

}lIontll 

REPOR'r O!" COMM1SSIOl'\ER OF INTERNAL REVENUE 

I II 1­__11 1 11 1 -

T""DI,E 49.-Dena/urcd alcohol: Prodnel1'on, Qy ml)nth~, liseal year J[)4J 

1Wiu(' gallons) 

152 

l"ormula I I AmOlWt 

1\[(",lh 

July ",. ...... • 

~e':f~~b(,;':: _:~:: ::::~~~:: :.:::::­

O(-lol>"r .. NUI'ember•. . __ 

Dl'ucmbc, _.. , _.. lanull!')' .. Frbruory .• _~ ••• ;_. • _ ,,[arc'l! ...... _._ ••••__. _ 

i{;~,L::. -:::::::::~:::.:~::::::_ JUIlC ...... ._. 

Tow!. .• __ .. • 

Jllly_ •.•••_•••••••---­••••.•.. --.--....••. ---.......... I ~~:~g g:~~:m :~'= ArJ~USt_ •••• •.••. -------•••••••••. -­ -.... :i:W:l,:j02 10,GOO.:j!ll, 13:603 Sepwmbcr.••• ••__ • •••••••••• .•••_. .1811 ll7ll 10.2SG,lr'j l3.oua 

Orlnbrr_. ••••• • ._•• ._............. 2' 269:SII; to,Il.~I. r,i1 I~ 1M, 

No'·cmher•• ..-••••• --------.. . 948. O! I II. 2"0(;, SO'J Ii 21. Deccmher. . .. __ _. 610.127 9,{l-IO.Ztl7 10610: 

ir~(1F~~:::::=~::::::::~::=::::::::~::::~::::::::::: ~H~? :H~n&~ !~~ AprIl.. •..... ------... -----------­••• ---­ .. ,-.". • \151. 780 1~, iG2,n.jr, 14,714.422

~~:~L:::::·:::~:::::.:::·::::::::::::::~:=:~·::::::::: 91).1,703 H, m. 728 I~ ·l'ot;;j •.. •••• ._ .._.... 17,GIl), 172, IJ5,S3·I, 261 15;1,~IO,431

TABt,!·] flO.-Completely rlc1U1111I'£.d ale"J"'l: Withrtl'nwals, Ii!/ furliO/laN (J1!fi by mo-naa., 

ji.• e(J1 lIear 19/, l 

\ IWlnc~allonsl

, 

1 Illr,;rmntlon ,,. to the cOIllPOsllioli or H.e:sc j'IrII1UJrlS "ill he I,yowd in '1'1'1);1>"';- IkclsintlS '1Q~. ItIll11d ~6-1S nnd (I,,· Aplelld" 1.0 !l<-v,ulat[olls No.3, );'(I'llluhl(' rur Compl,tely :llld Sl'ccl:llly DCII"tun'd .'\.1('01101. RC\'ised )fI

3:}r Tn.'-:.L:::.ury 1)e.pt\J·lmcut, BI.lrl.':l,u of Inl('l'unl Re\'~'nlJl"

T A (H.E 5L-Sl'ecially dClca/ul'nl (J/eoh(ll: lVithd"a'WI1I~, bll jrJY1fllllfls, fi,~elll ilear 191.1 

(Wino ~:\l1o"sJ

1. ---­ __ ... 35,216. OS7 Z3-A t,i311,5P8 :;1 -A..... O.Oil3 2-n.. 3;.f;51.$~ 23---E 3<1 3·~ ...__ •• J.1i02.30h 

J-.\.... . l,,~71,O!}-1 Zl-F....... 2,·!1~ 3:1 .. 4.'17_' 

~-n.. ..... 2.U10 23-0....... .~O.Of,,1 35_________ lO.774 1..... • I,V31.:WS 23-TI....._ 2,,~~1. 712 ~6--.-L__ _ 5,16.1.37'1 6-A_...... SU45:1f! nm :J6. , • (1,1:;2 

O-B... .... 8f,. 20t 2.~A ..... _ 54.1ll13 :l7 •• ••• Oflll, Sl;O 

)'1·,\.--.-.­ M'I,(I09 27 ••• -12,010 J,-.I... __ .. 2.o.~7

1:J-A .. 'l'5.~3 27-.\. _ 8.2'-1 3~ ... '.ll>.,;jO

17._ .• 2,ttblOS2 27-B _._ 7J.~:!,'j ~~A ~.~ . 1.')0 

1.8 __ ...... ~.fi9s.3-l2 cn; _. . _ GIlD. 712 :jS-!l 5OS,lr,OII"' __ 19_........ (ill.09O 2:;-.\.... :US2 :l~-C ... I:j,732 ·m •.J __ ._ ., ~,'h."JV ern ,'c· ~;;._ .,., .t_, 5~~... -'1" (,~ <J'~ ',' [) __ I" u ... "3' ,J I '(' 01 t II •••. 

22.. 190 311 • _... 151.031 3~·1':..._ 1(;3 I __ 

I 111 rOrnUltlllJl lis to ;~e eOlnl~/"lUnn OW!IIUlho'!?",1 'b"" nr theso Curtllllhl' will bl' fOlllll! I" fhe 11Io~1.;:.f l{l~iS l.\fjJtions of tJw_ .\ppendl,\; tn HI'){111llLfon~ No. :\. Jj~.rllJulllJ' for <:Qrllph;W'J~' t\lnt Sp-:oli,lh' 1.>"'1.' 

AJ£".ohOI, 'J'f\':\.Sur;-' Ih·p·lrtrn~'lJt,.!if!lUu'JHll.L1 by 'rn.'llSlJry l)cd~ion ~o, l::Ki1. 
154 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 54.-Specially denatured alcohol: Operations of manufacturers, by States, 

fiscal year 1941 

(Quantities in wine gallons] 

State 

Number 

of menufaetwers 

operating I 

Received Recovered 

after use s 

Used In 

manateeturing 

On hand 

June 30 

Alabama 

relES8 :1 ;; ;;PriRragi 61-'11 §5.2A

r

Ztr £034 ,S

nEra:."92 E7-7°°SW9S N 

78,709 40,168 117, 445 7,760 

Arizona 30 30 11 

Arkansas 77,620 78,992 10,501 

California 3,216, 415 993,394 4,192,565 180,814 

Colorado 46, 810 49, 396 1,889 

Connecticut 798, 298 360, 663 1, 146,812 90.928 

Delaware 84, 011 367, 714 447,904 18, 688 

District of Columbia 518,008 519,124 5,097 

Florida 15, 277 5,130 20,134 2, 380 

Georgia 69,296 69,109 1,593 

Hawaii 18.179 18, 223 97 

Idaho 1,896 2, 571 4 

Illinois 7,442, 699 724,530 7, 996, 168 397,747 

Indiana 7, 174,020 4, 721,364 12, 551, 949 566,128 

Iowa 393, 899 244, 246 6, 371 

Kansas 82.098 79,411 6,010 

Kentucky 411,455 406,437 27,050 

Louisiana 7,182, 278 7, 177,094 71, 371 

Maine 916 35 

Maryland 9,848, 113 302, 930 10,042, 528 176, 241 

Massachusetts 4, 935,334 4,840,855 9, 756,968 212, 515 

Michigan 2, 658, 139 2, 169, 770 4, 768, 350 197,766 

Minnesota 233,197 ______ ___ 229,035 12,200 

Mississippi 138,669 8, 633, 905 8, 777; 989 698 

Missouri 1,926, 581 2, 478,411 4, 443, 613 174,339 

Montana 21 19 4 

Nebraska 18,067 86,907 104,058 2,324 

New Hampshire 16, 872 16,949 192 

New Jersey 23,697, MI 21, 748,180 45,135, 265 939, 649 

New Mexico 108 116 39 

New York 3 7, 324, 274 5,911,881 13, 260, 948 274,437 

North Carolina 2,950,705 209,358 3, 141, 293 121,861 

North Dakota 43 52 17 

Ohio 1, 269, 704 279, 843 1, 498, 603 109, 644 

Oklahoma 55, 783 49,279 9, 846 

Oregon 17,449 17,473 2,755 

Pennsylvania 9,109, 899 10,073, 552 19, 166, 741 197, 220 

Puerto Rico 996,922 998,124 834 

Rhode Island 97, 961 8, 524 105, 461 6,648 

South Carolina 1, 440 169 1, 459 144 

South Dakota 51 100 24 

Tennessee 13, 309, 040 2,071, 606 15, 357,856 1,850,905 

Texas 798, 007 57,700 790,006 88, 739 

Utah 7,346 7, 587 250 

Vermont 6,889 6.969 88 

Virginia 1, 387, 975 1, 282, 872 2, 374, 850 347,273 

Washington 6,043 6.085 1, 550 

West Virginia 26, 138, 560 22, 014, 322 48, 170, 813 70,998 

Wisconsin 409,629 397,876 24,286 

Wyoming 10 10 3 

Total 4, 200 134, 847, 908 89, 383, 748 223, 745,001 6, 217,459 

I Number operating during anypa t of the year 

In some industries, where the denatured alcohol does not become a part of the product, a portion is reoovered and reused. 

3 Includes 210,763 wine gallons recovered from solutions received containing specially denatured alcohol. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 155 

TABLE 55.-Distilled spirits: Number of distilleries and internal-revenue bonded 

warehouses operated,' by States, fiscal year 1941 

State 

Distilleries Internal. 

revenue 

bonded 

ware- Whisky houses Rum Gin Brandy Other 2 Totals 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Georgai 

Hawau 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Tennessee 

Vermont 

Virginia 

Washington 

Wisconsin 

Total 

eo 

CO 

N MM.- 

am 

,. .I N MO n.,04•04 N CVO NCON M3CCI 

M...M 7.1 2gM

rNMt■ Ne er. 

88 8 11 127 16 232 288 

I Number operated during any part of the year. 

2 Except as otherwise noted represents distilleries p educing h gb-proof spirits. 

3Exclusive of duplications which resulted from plants produc ng more than one kind of spirit . 

Arak. 

TABLE 56.-Distilled spirits: Production by kinds and by months, fiscal year 1941 

(Tax gallons I] 

Month Whisky Rum Gins Brandy 3 Other 

spirits Total 

July 5, 199, 555 167, 280 614, 463 316, 459 1,305,661 7, 603, 318 

August 3, 251, 931 177, 263 404, 548 1, 987, 767 1, 041, 258 6, 862, 767 

September 6, 775, 849 194, 242 262,893 8,130, 317 1, 394, 988 16, 758, 289 

October 10, 435, 216 238, 574 286, 590 9, 009, 449 2, 101, 285 22, 071, 064 

November 11, 908,032 219, 172 302, 217 3, 619, 210 1, 778,113 17, 824, 744 

December 12, 315, 791 228, 236 202, 697 986, 341 2 027,040 15, 760,105 

January 13, 219, 788 154, 182 218,163 298, 234 1, 811, 277 15, 701, 644 

February 12 658, 046 199, 564 210, 806 284, WO 1, 781, 703 15, 134,619 

March 12, 642, 833 304, 968 728, 337 147, 854 1, 689, 681 15, 513, 573 

April 11, 859, 719 251, 718 625,162 265, 753 1, 723,317 14, 725, 669 

May 12, 025, 273 240, 639 605, 724 184, 591 1, 675,473 14, 731, 700 

June 

Total 

9, 559, 950 239,108 715, 807 133, 402 1, 872, 987 12, 521, 264 

121,21,851,983 32,614, 946 5,177, 357 25, 383, 877 3 23, 200, 583 175, 208, 746 

1 Figures are in tax gallons. The tax on cdstilled spirits is collected on the basis of proof gallons for spirits 

of 100 proof or over and on the basis of wine gallons for sp rits of less than 100 proof. (See secs. 2300 and 2809, 

Internal Revenue Code, 1939.) The proof of spirits is twice the percent of the content, by volume, of ethyl 

alcohol. Spirits containing 50 percent ethyl alcohol by volume are, accordingly, 100 proof. A standard 

proof gallon is a wine gallon (231 cubic inches) of 100 proo spirits. The number of proof gallons contained in 

a wine gallon of spirits of proof other than 100 is proportional to the alcoholic content. (The units described 

are based upon spirits at 60 degrees Fahrenheit, at which temperature ethyl alcohol has a specific gravity 

of .7939.) 

For additional production of gin at rectifying plants, see table 68. 

See table 58 for kinds of brandy oduced. • 

Includes 1,796,185 gallons produced at distilleries for denaturation. 

Except for 82,917 gallons of spirits produced for denaturation and 1,225 gallons of arak, reprceents highproof spirits produced at distilleries. 
156 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 57.-Distilled spirits: Production, by kinds and by States, fiscal year 1941 

[Tax gallons] 

State Whisky Rum Gin 1 Brandy' Other spirits Total 

Arizona 

Arkansas 

California 

Connecticut 

Georgia 

Hawaii 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Missouri 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Tennessee 

Vermont 

Virginia 

Washington 

Wisconsin 

Total 

524, 043 

23, 229,085 

19, 474, 448 

57, 332, 890 

312, 462 

9,069, 266 

78, 606 

243, 602 

5, 289,146 

5, 735,197 

242, 507 

216, 314 

73,632 

21, 000 

9, 785 

1, 130, 

120, 

1, 257, 

100, 

5, 

710 

614 

518 

391 

057 

656 

281,139 

1, 8413, 328 

I, 918, 922 

249, 515 

706, 535 

627, 918 

24, 754, 295 

6, 250 

2,103 

8,149 

7, 940 

35, 956 

4,828 

5, 493 

15, 514 

2 34, 614 

23,967 

3, 379 

128,398 

132, 991 

10, 700 

1, 225 

1, 778, 889 

11, 370, 712 

2,938, 509 

1, 204 

3, 534, 573 

153, 369 

411, 402 

25,

26,

32, 

61, 

13, 

1, 

5, 

5, 

73, 632 

4,828 

570,177 

26, 493 

15, 614 

8, 089 

901,302 

264, 082 

653, 727 

434, 184 

318, 523 

335, 997 

243, 602 

234, 614 

789, 227 

736, 504 

23,967 

835, 254 

245, 886 

5, 656 

344, 712 

132, 991 

9, 785 

121,851, 983 4 2, 614, 946 5,177, 357 25, 363, 877 420, 200, 583 175, 208, 748 

1 For additional produccon of gin at r ctifying plants, see table 69. 

I See table 58 for kinds of brandy produced. 

Includes 1,796.185 gallons produced at distilleries for denaturation. 

4 Except for 82,917 gallon of spirits produced for denaturation and 1,225 gallons of arak, represents highproof spirits produced at datilleries. 

TABLE 58.-Distilled spirits: Brandy produced, by kinds and by States, fiscal year 

- 1941 

[Tax gallons] 

Kind California Ohio Oregon Virginia as

o

hing. t Total 

Grape 

Raisin 

Apple 

Peach 

Prune 

Cherry 

Blackberry 

Apricot 

Pear 

Guava 

Pineapple 

Plum 

Elderberry 

Total 

22, 754, 475 

168, 935 

4, 129 

1, 777, 231 

17,081 

22, 637 

9,378 

429 

21, 649 

12, 311 

5134 

1, 269 

163 

984 

16, 418 

1,124 

783 

4, 658 

120. 

122,002 

3, 508 

189 

2, 519 

84, 147 

32, 087 

2, 043 

4, 494 

7, 522 

2, 531 

167 

1 22, 864, 837 

1, 777, 231 

, 606,427 

$ 41, 525 

27, 131 

13, 52E1 

i 12, 153 

9, 545 

4, 668 

63,941 

6 2,309 

429 

163 

24,754,295 35,956 23, 967 128, 398 132,991 25, 363, 877 

Includes 3,462 gallons in Arkansas. 

I Includes 1,368 gallons in Arkansas, 5,493 gallons in Connecticut, 2,103 gallons in Kentucky, 8,149 gallons 

in Maryland, 229,563 gallons in New Jersey, and 7,940 gallons in New York. 

3 Includes 15,514 gallons In Georgia and 3,379 gallons in Tennessee. 

4Includes 5,051 gallons in New Jersey. 

4Produced in Hawaii. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE, 157 

TABLE 59.-Distilled spirits: Total withdrawals, tax-paid,' by kinds and by months, 

fiscal year 1941 

[Tax gallons] 

Month Whisky Rum Gin Brandy Other 

spirits Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

5,467, 645 

3,614, 837 

6, 335,649 

8,904, 744 

10, 490,262 

7,322, 796 

5,016,503 

5, 822,668 

6, 619, 399 

6,147, 206 

7, 531, 002 

7, 209, 863 

46,819 

35, 426 

97.382 

73,056 

96,303 

82,183 

86,256 

64,464 

65, 426 

67,134 

87, 330 

67, 945 

604,824 

424, 659 

272, 976 

228,943 

324, 881 

221, 645 

197,330 

215,564 

746, 578 

661, 875 

570.564 

697, 649 

85,185 

104, 585 

183, 995 

231,153 

310, 718 

258, 430 

173, 076 

156,630 

175, 663 

152, 223 

148, 583 

173, 083 

1, 421, 866 

668, 460 

1, 323, 854 

1,981, 909 

1,913, 204 

1,065, 270 

566,984 

703.965 

842, 728 

998, 517 

1, 384 429 

1,132, 899 

7,626,889 

4,847,967 

8,183, 256 

11,479,805 

13,134, 368 

a 950, 324 

6, 040,179 

6,963,291 

8, 449, 799 

8, 024,955 

9, 721.908 

9, 281,439 

80, 541,979 818, 754 5,167, 488 2,153, 324 14,034,085 102, 685,625 

1 These figures refer to spirits withdrawn subject to tax at the rate of $3 per tax gallon. with he exception 

of brandy, for which the rate was $2.75 per tax gallon. In addition, 19,818,471 tax gallons of brandy were 

transferred from brandy distilleries and 5,180,908 tax gallons of brandy were withdrawn from internalrevenue bonded warehouses for the fortification of wine. (The Act °Lions 24, 1940 (Public, No. 655, Seventysixth Congress), effective July 1, 1940, amended section 3031 of the Internal Revenue Code by eliminating 

the tax on brandy used in the fortification of wine and increasing the tax on wine to compensate for the 

loss of revenue occasioned by such elimination.] ' 

TABLE 60.-Distilled spirits: Total withdrawals, tax-paid,' by kinds and by States, 

fiscal year 1941 

[Tax gallons] 

State Whisky Rum Gin Brandy Other

spirits Total 

Arizona 

California 

Colorado 

Connecticut 

Georgia 

Hawaii 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

New Jersey 

Slew York 

Dhlo 

Dragon 

Pennsylvania 

lannessee 

Vermont 

Virginia 

Washington 

Wisconsin 

Total 

4, 667, 511 

114, 152 

16, 377, 898 

11.303, 608 

26, 255, 969 

297,765 

7, 438, 289 

1, 019, 321 

307,129 

596, 013 

732, 473 

115,636 

a 153, 455 

7, 798, 540 

31,042 

21,680 

54,203 

10,270 

44,545 

905 

201,1,279 

266 

18,245 

5, 314 

63, 243 

48, 044 

20, 651 

14,312 

3,823 

345, 428 

73 

1,104 

22, 643 

3,199 

268,909 

85 

1, 109 

2, 592 

257, 621 

267 

1, 869, 622 

1,424, 213 

250, 347 

706,448 

10, 375 

2,660 

175 

601 

631,072 

10,010 

2,267 

40 

1,880 

528, 945 

44 

237,979 

71, 199 

17, 264 

28,157 

545, 889 

323, 590 

56,421 

133,758 

12,933 

4, 048 

86, 069 

56,018 

11,993 

4, 787 

1,636 

32, 478 

118 

63, 938 

557 

1, 770, 556 

5, 758, 472 

1, 358,965 

3,260,461 

37, 247 

125, 739 

488,631 

1,139,328 

191 

21,680 

5,536,960 

54, 208 

132, 0611 

9,098 

1, 710 

20, 319, 293 

18, 605, 538 

27,903, 196 

312, 117 

11, 437,178 

1,461.193 

10.270 

365, 870 

609, 285 

1, 338, 783 

1,199, 284 

3, 701,099 

4, 787 

9,350 561 

46, 181 

2,978 

233,755 

33, 492 

2611 

80, 541, 974 818,754 5,167, 488 2,153, 324 14,004,085 102,685, 626 

I These figures refer to spirits withdrawn subject to tax at the rate of $3 per tax gallon, with he exception 

of brandy, for which the rate was $2.75 per tax gallon. In addition, 19,818,471 tax gallons of brandy wero transferredfrom brandy distilleries and 5,180,908 tax gallons of brandy were withdrawn from internalrevenue bonded warehouses for the fortification of wine. [The Act of June 24, 1940 (Public, No.655, Seventy 

sixth Congress), effective July 1, 1940, amended section 3031 of the Internal Revenue Code by eliminating 

the tax on brandy used in the fortification of wine and increasing the tax on wine to compensate for the loss 

of revenue occasioned by such elimination.] 
REPORT OF COMMISSIONER OF INTERNAL REVENVE 159 

TABLE 63.-Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by States, June 30, 1941 I 

[Tax gallons] 

158 REPORT OF COMMISSIONER OF- INTERNAL REVENUE 

TABLE 61.-Distilled spirits: Bottled-in-bond I withdrawals, tax-paid, by kinds 

and by months, fiscal year 1941 

[Tax gallons] 

Month Whisky Rum Gin Brandy Total 

July 838,056 

gfis R. g as 

3,858 843,679 

August 532, 869 2, 578 537, 542 

September 961, 201 8, 574 972,218 

October 1, 332, 973 10,010 1, 347,492 

November 1, 923, 286 21,782 1,949, 154 

December 1, 649,037 16, 658 1, 669, 729 

January 744,492 12,186 761,468 

February 876,395 5 388 885,394 

March 1,173, 675 9, 297 1, 185,822 

April 936,167 5,775 944, 433 

May 1, 228,792 6,080 I, 237, 769 

June 1,346,904 10,498 1, 360, 795 

Total 13, 543,847 37,846 1, 058 112,684 13,695,435 

I These spirits were bottled in bond prior to the payment of tax, with the excep ion of 1,602, 78 gallons of 

whisky and 5,182 gallons of brandy bottled In bond of er payment of tax. The figures in this table are 

included in total withdrawals as shown in table 59. 

TABLE 62.-Distilled spirits: Bottled-in-bond 1 withdrawals, tax-paid, by kinds and 

by States, fiscal year 1941 

[Tax gallons] 

State Whisky Rum Gin Brandy Total 

California 548, 475 267 51 47,863 596.646 

Colorado 7,124 7, 124 

Connecticut 8,809 8,809 

Illinois__ 1,334,491 321 5,788 1, 340, 600 

Indiana 1,101.805 300 18,683 1,120,788 

594 

Kentucky 6, 710, 751 153 832 4,858 6,716, 

Louisiana 1,374 1,374 

Maryland 635,170 799 635,969 

Massachusetts 

Minnesota 

146,882 

21,938 

28,529 304 175,715 

21,438 

Missouri 219, 877 175 6 220,059 

New Jersey 122.226 11, 464 133, 690 

New York 50.075 1,154 51,229 

Ohio 519,572 519,572 

Pennsylvania 2, 105, 825 8,285 21, 765 2,135,875 

Virginia 4,287 4, 287 

Washington 5,666 5,666 

Total 13, 543,847 37,846 1,058 112, 684 13,695, 435 

I These spirits were bottled in bond prior to the payment of tax with the excep ion of 1,602,178 gallons of 

whisky and 5,182 gallons of brandy bottled in bond after payment of tax. The figures in this table are Included in total withdrawals, as shown in table 60. 

State Whisky Rum Gin Brandy Other 

spirits Total 

Arizona 909,624 909,629 

California 5,081, 277 23,975 81,775 13,590, 12A 19,698 18, 796,899 

Colorado 83,398 83, 398 

Connecticut 124,299 6,662 630 41,715 684 173,985 

Georgia 14, 713 14, 713 

Hawaii 7, 569 12. 881 17, 830 38, 2730 

Illinois 81,265.283 111, 176 19,687 440.490 944,706 82, 781,342 

Indiana 77, 440, 046 18,343 33,898 396,502 13, 889, 938 91,778,727 

Kentucky 213,739,792 319,050 6,729 50, 602 2,460,145 216, 576,318 

Louisiana 357,290 334,825 12,342 709,457 

Maryland 99, M0,455 2,144 17,336 61.695 5,662, 726 54,994, 356 

Massachusetts 2, 031,198 1, 428, 881 14,576 93, 369 3, 568,021 

Michigan 71.498 71,498 

Minnesota 141,106 335 166 29,504 171,111 

Missouri 1, 138,755 508 316 25, 511 1,185,090 

New Jersey 1, 506,986 3.116 857.611 19, 366 2,381,579 

New York 52, 269 6, 756 5,146 572.426 7, 992 644, 589 

Ohio 18, 472,273 1, 211 64,571 3, 274, 692 21, 812, 747 

Oregon , 40,385 40,335 

Pennsylvania 50, 622, 671 1, 217, 753 14,216 380.531 468, 788 52,703,959 

Tennessee 490,190 18, 266 508,456 

Vermont 

Virginia 

354 

1, 567, 391 

362 80 

168,540 

22, 25823,059 

1,735,931 

Washington 195,123 3,887 6,483 205,993 

Wisconsin 89,918 292 90,210 

Total 501.080. 691 3,482.958 210,784 16,865.919 24783,823 3 551, 424,175 

I Number of tax gallons according to original entry gauge. Losses are not determined until withdrawal. 

'In addition, there were 8,774 gallons of unclassified spirits in export storage warehouses. 

TABLE 64.-Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by years and seasons of production, June 30, 1941 I 

[Tax gallons] 

Year Season Whisky Rum Gin Brandy Other Total 

1911 Spring 77 77 

Fall 135 135 

1912 Spring 850 650 

Fall 30 159 189 

1913 Spring 2, 640 137 2, 777 

Fall_________ 1,400 1,400 

1914 Spring 2,244 • 2, 244 

Fall 288 279 567 

1915 Spring 2,127 58 2,185 

Fall-________ 1,278 93 1,371 

1916 Spring 11, 699 11, 699 

Fall 9, 462 135 286 9, 883 

1917 Spring 5,484 169 1, 456 1 99 7, 082 14, 290 

Fall 7,194 223 29, 622 6 18, 757 50, 802 

1919 Fall 87 179 266 

1920 Spring 286 98 389 

Fall 2,502 2,502 

1921 Spring 1, 121 1, 121 

Fall 36, 681 897 37, 578 

1922 Spring 351 351 

1928 Spring 462 462 

1933 Fall 187, 727 72,365 3, 320 '263,412 

1934 Spring 671, 349 8, 662 30,509 710, 515 

Frail 1,788,892 245,477 917 42,695 2,057,431 

1935 Spring 4, 331, 788 786, 012 821 32,969 5, 151,590 

Fall 9,602,818 70, 421 12, 544 109,129 9, 789,912 

1936 Spring 25, 983,394 91,410 2,697 86,844 . 26, 169, 345 

Fall 45, 481,098 147, 171 3,016 268, 245 193, 862 46,043,392 

1937 Spring 53, 569,161 172, 966 11, 279 205, 394 469, 071 54, 927,361 

Fall 29, 091, 663 209, 897 12, 620 1, 276,679 780, 584 31, 371, 443 

1938 Spring 37, 783,387 66, 183 2,744 312, 616 686,058 38,850, 988 

Fall 35, 593, 922 222, 532 171 8, 968, 074 522, 200 45, 304, 899 

1939 Spring 43, 583, 851 160,944 5 1, 054 743,383 2,865,485 47, 354, 717 

Fall 35, 899,884 269,189 172 1, 365, 371 1,994, 763 39, 529, 379 

1940 Spring 60, 306, 725 274, 727 1, 655 477, 396 4, 726, 931 65, 787,384 

Fall 48, 868, 812 185, 099 3, 162 2, 396, 975 5, 605, 635 57,060, 628 

1941 Spring 71, 270.830 498, 973 132.354 550.492 8. 963. 297 81.415.946 

Total 509. 080. 691 3. 482. 958 210.784 16. 865, 919 26. 783. 823 +551.424.175 

Number of tax gallons according to original entry gauge. Losses are not determined until withdrawal. 

Due to correc ion, this amoun exceeds the figure reported for June 30, 1940. 

3 Due to error, no figure was reported as of June 30, 1940. 

In addition, there were 8,774 gallons of unclassified spirits in export storage warehouses. 
Corn 

Pounds 

513, 000 

5, 636, 886 

134,470 

202, 214, 716 

283, 789, 167 

495; 701, 374 

3, 390,090 

66, 709,173 

731, 379 

2, 238, 568 

8,410, 550 

46, 968, 336 

16,933, 177 

2, 525, 376 

1, 740, 256 

Malt 

Pounds 

129, 760 

738.617 

72, 566 

38, 518, 725 

38,636,445 

89, 642, 209 

341, 396 

24, 651, 924 

106,016 

409, 546 

1,168, 640 

8, 113, 359 

10, 341, 408 

356,216 

288,363 

26, 890 

213, 442,070 

160 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 65.-Distilled spirits: Losses in internal•revenue bonded warehouies from 

leakage and evaporation, by kinds of spirits and by States, and other losses, by 

kinds of spirits, fiscal year 1941 

[Tax gallons) 

State Whisky Rum Gin Brandy Other  spfrits Total 

Losses from leakage and evaporation: 1 

 Arizona 3, 483 3,483 

California 995, 066 3, 635 128 87, 848 2,080 1,068,757 

Colorado 8, 598 8, 598 

Connecticut 19, 750 I, 061 1 1, 799 22, 806 

Georgia 395 385. 

Hawaii 93 20 41 154 

Illinois 2, 839, 838 10, 019 459 23,936 40, 101 2,914,343 

Indiana 2, 382, 604 3, 596 698 10, 300 244,157 2, 641, 305 

Kentucky 

Louisiana 

5, 873, 610 

30, 266 1,979 

3, 375 11 

1,874 57, 812 5, 935, 

32 256 

Maryland 1, 826, 248 711 11 9, 372 

5,477 

219,196 2, 050, 538 

241,068- Massachusetts 

Michian 

189,907 45,684 2, 322 

Minne

g

sota 70,425 

2,322 

22 6 6, 523 76, 976 

Missouri 120, 489 348 507 121, 344 

New Jersey 135, 623 2, 971 64, 076 1,245 203, 915 

New York 22,485 714 36, 071 17 59, 287 

Ohio 625,841 548 1,249 26,971 851,279 

Oregon I, 249 1, 299 

Pennsylvania 2,133, 133,440 57, 378 16, 799 76, 145 283, 762 

Tennessee 3,831 71 3, 902 

Vermont 236 51 287 

Virginia 33, 3 84 4,118 37, 502 

Washington 7,068 13 3 1, 606 3,690 

Wisconsin 34 34 

Total 17, 324, 538 132, 147 1,267 268,495 667,816 18, 394, 213 

Losses from other causes 2 9, 964 6 921 229, 785 1, 708 237, 384 

Total losses 17, 334, 502 132, 153 2, 188 493, 230 669, 524 18, 631, 597 

I Difference between entry and withdrawal gauge of all spirits withdrawn from bonded warehouses. 

I Losses from fire, theft, casualty, etc.- 

TABLE 66.-Distilled spirits: Grains and molasses used in production; by States, 

fiscal year 1941 

Grains 

State 

Arizona 

California 

Connecticut 

Hawaii 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Missouri 

New York 

Ohio 

Pennsylvania 

Tennessee 

Vermont 

Virginia 

Wisconsin 

3, 528, 327 

I For materials used in the production of brandy see table 67. In addition to the grain and molasses. 

shown, 4,000 pounds of sake lees, 2,750 pounds of guava Juice, 950 pounds of coconut juice, 750 pounds of rice 

lees, and 300 poundsorgans' . 

 sirup used In Hawaii, 236,100 pounds of diamalt used in Illinois, and4,1169 poundsof malt sirup used in Louisiana. 

2 All used In the production of rum with the exception of 211,697 gallons in California used for gin, and 

1,600 gallons in Hawaii used for arak. 

s Includes 2,511,040 pounds of wheat. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 161 

TABLE 67.-Distilled spirits: Materials used in the production of brandy, by kinds 

and by States, fiscal year 1941 

FRUIT I 

Kind California Kentucky Tennessee Virginia Total 

Pounds Pounds Pounds Pounds Pounds 

Grapes 31,058,4131 31, 058,231 Raisins 7, 057, 815 7,057,816 

Apples 1, 640, 000 179, 802 1, 604,156 3, 423, 958 

Peaches 1, 980,000 502, 790 1, 982, 790 

Apricots 580,000 560,000 Prunes 456,636 456,636 

Total 42, 252, 682 179, 802 502, 790 1, 604,166 44, 539, 430 

FRUIT WINE, CIDER, AND JUICE 2 

Kind California Ohio Oregon Virginia Washin - tee6 Total 

Gallons Gallons Gallons Gallons Gallons Gallons 

Grape 153, 942, 495 91, 434 6, 913 500 477, 514 s 154, 564, 570 

Raisin 11, 416, 760 11, 416, 760 

Apple 1, 214, 389 59, 415 146, 819 774, 627 200, 073 4 4, 454,119 

Peach 19, 050 15, 205 ' 94, 808 

Che 19, 573 2, 315 7, 830 730 43, 733 79,181 

Black 10,450 6,674 7,850 12,472 062,931 

Prune 38,250 23,376 61,626 

Pear 45,738 45,738 

Plum 9, 860 9, 860 

Apricot 1,814 1, 814 

Elderberry 963 963 

Total 166, 641, 327 164, 577 212,974 802, 757 774,187 7 170, 846, 756 

1In addition, the following amounts of fruit residuums were used: 1,577998 gallons of lee In California 

and 3,275 gallons in Ohio; 4,357,410 gallons o grape pomace in California and 111,623 gallons o apple pomace 

in Virginia. 

Not included are 12,516,264 gallons of grape wash in California. 

I Includes 46,714 gallons in Arkansas. 

O Includes 11,463 gallons in Arkansas, 40,500 gallons in Connecticut, 71,985 gallons In Maryland, 1,866,298 

gallons in New Jersey, and 68,600 gallons in New York. 

Includes 60,553 gallons in Gernert 

6 Includes 25,985 gallons in New Jersey. 

7 Includes 33,250 gallons of guava juice and 26,136 gallons of pineapple juice in Hawaii. 

TABLE 68 -Rectified spirits and wines: Production, 1by kinds and by months, 

fiscal year 1941 

[Proof gallons 21 

Month Whisky Gin 

Cordials 

and liqueurs Miscallamous Total 

July 3, 452. 564 782,026 132,211 32,389 4, 399, 190 

August 1, 629, 556 602, 391 140, 500 16, 736 2, 389,183 

September 3, 502,110 956, 737 201, 526 29.529 4, 189,902 

October 5, 367, 852 424,547 298,564 36,831 6, 117. 799 

November 5, 863, 207 617.349 344,111 40,189 6, 764,856 

December 3, 769, 317 446,318 321, 250 56,239 4, 593,124 

January 2, 635,422 354,287 186, 533 42, 411 3, 118, 653 

February 2, 837, 671 333.109 182,724 33,785 3.387.289 

March 3, 379, 829 593,342 186,450 51,281 4,210, 902 

April 3, 417, 559 736.347 185, 245 69.489 4, 398, 640 

May 4, 224,127 726,213 183, 713 61, 062 5,195, 115 

June 4, 347, 952 792,041 179,361 73,636 5,392,980 

Total 44.317,166 6, 769, 707 2, 592,178 3 533, 577 54,167, 628 

I For production of distilled spirits at dis Merles, see table 57. 

• 2 The figures are in proof gallons. Except for some products containing fortified wine, the rectification 

tax Is collected on the basis of proof gallons. (See sec. 2801, Internal Revenue Code, 1939.) For a definition 

of a proof gallon see footnote 1, table 42. 

I Includes 184.835 proof gallons of brandy, 179,185 proof gallons of rum, 46,184 proof gallons of alcohol, 

36,539 proof gallons of wine, 8,059 proof gallons of vermouth, 376 proof gallons of high-proof spirits, and 

78,399 proof gallons of other unclassified spirits. 

Total 1,135, 636, 518 

Rye 

Pounds 

246,335 

675,007 

65,966 

72,004,388 

44, 170, 744 

113, 446, 152 

36, 470 

72, 505, 749 

157, 228 

510, 544 

66, 990 

11, 722,143 

45, 570, 678 

313, 768 

359, 240 

107, 680 

361, 958, 982 1, 713, 548, 610 

Total 

Pounds 

8811,095 

7, 050, 510 

273,002 

312, 737, 829 

366, 596, 358 

s 701, 300, 775 

3, 767, 956 

162, 766, 846 

994,623 

3, 158, 658 

9, 646,180 

66, 803, 838 

71,845, 163 

3, 196, 360 

2, 387, 849 

134, 570 

Molasses s 
162 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 69.-Rectified spirits and wines: Number of plants operated and production I by kinds, by States, fiscal year 1941 

[Quantities in proof gallons 

State 

Number 

of plants 

operated 1 

Whisky Gin 

Cordials 

and 

liqueurs 

MI44431141 

114004 

Total 

California 

R— °'' AL' E"RA"'flc4S 

462,387 480,431 114,798 86,008 , 1,112, 624 

Colorado 238 1,764 119 324 2,445 

Connecticut 326, 272 266, 774 80,287 42, 533 715.916 

Hawaii 180 116 1,004 1,755 3,055 

Illinois 2,772,026 293,973 719,474 62,014 3,847,487 

Indiana 

Kentucky 

8.956, 787 

4, 769, 977 

225, 752 

27,831 

15,865. 

7, 575 

14,975 

308 

9, 213, 369 

4,805. 691 

Louisiana 

Maine 

624 

14, 818 

108,107 

13, 931 

20,031 

1,775 

1.848 123,510 

30,524 

Maryland 11,512,958 117, 554 40, 378 5,418 11.878,303 

Massachusetts 1,199,911 390,005 487,667 65,148 2,132, 731 

Michigan 

Minnesota 70, 851 

15,188 

4,435 

176,140 

36,780 

15,332 

46,302 

206, 710 

153, 368 

Missouri 4. 573 80,801 116,806 159 202,139 

New Jersey 

New Mexico 

2,330,025 

218 

1,987,034 

56 

183,832 

1,006 

7,627 

7,786 

4,508,518 

9,065 

New York 

Ohio 

1,263,862 

1,219,136 

322, 532 

441,638 

73,068 

187,589 

45,058 

30,932 

1,694, 570 

1,879, 295 

Pennsylvania 9,359, 766 1,996,423 240,768 122,750 11, 719,706 

Rhode Island 29,950 1,676 31,628 

Tennessee 

Vermont 1,972 

2, 117 

71 

2,117 

2,043 

Washington 23 ,800 1,721 25,521 

Wisconsin 1, 747 7,501 31,843 8,200 49,291 

Total 245 44,317,166 6,764,707 2, 542,178 ] 533, 577 54,157, 628 

I For production of distilled spirits at distilleries, see table 57. 

The number operated during any part of the yeaf. Includes 184,835 proof gallons of brandy, 179,185 proof gallons o rum, 48,184 proof gallons of alcohol, 

36,539 proof gallons of wine, 8,059 proof gallons of vermouth, 378 proof gallons of high-proof spirits, and 78,399 

proof gallons of other unclassified spirits. 

TABLE 70.-Rectified spirits and wines: Alcoholic liquors I used in rectification, by 

kinds and by months, fiscal year 1941 

[Proof gallons] 

Month Alcohol Whisky High-proof 

1 spirits Wine Mised" laneota Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

1,700, 248 

1,137,002 

1, 612,344 

2,015,929 

2, 684,062 

1,836, 266 

1, 386.544 

1.529,345 

2,115, 636 

2,089, 917 

2,334, 591 

2.522, 656 

1,160, 184 

657.254 

1,458,332 

2,189,715 

2,251,208 

1, 461,638 

995,721 

1,128.990 

1,275,203 

1,281,818 

1,562,277 

1, 621, 377 

1,371,865 

618, 254 

1.242,433 

1,848, 068 

1.900, 693 

1,001, 704 

590, 715 

659, 582 

820,251 

986,627 

1, 259, 965 

1,091, 676 

RilsgnailEM 4.?Elgl.rig4gggg. 

31.040 

39, 614 

58, 311 

102.199 

120,851 

122, 278 

70,748 

59,149 

72,565 

72,280 

83,783 

96, 758 

4281,439 

2,486.724 

4,392, 816 

6,185,732 

9 898,943 

4,459, 519 

3.047, 615 

3, 399, 430 

4,310,377 

4,438, 368 

5,271, 916 

5, 358,493 

22,844, 540 17,021,787 13, 391, 833 322,456 + 928, 576 54,509,172 

1 Includes imported as well as domestic liquors. 

Represents high-proof spirt s produced at distilleries Includes 583,267 proof gallons of brandy, 179,884 proof gallons of min, 123,094 proof gallons of gin, 29,818 

proof gallons of cordials and liqueurs, 12,228 proof gallons of vermouth, and 20,315 proof gallons of Imola*. 

sffied spirits. 

REPORT? OF COMMISSIONER OF INTERNAL REVENITAI 163 

TABLE 71.-Reetified spirits and wines: Alcoholic liquors I used in rectification, by 

kinds and by States, fiscal year 1941 

[Proof gallons] 

State Alcohol Whisky nigh-PITIof spirits Wine MiseeIlaMOUS Total 

California 784,388 147,803 46,760 25, 550 108,813 I, 113, 114 

Colorado 2,287 295 127 2,709 Connecticut 513,676 173, 074 12, 289 1, 843 18, 099 718, 981 Hawaii 19 _____ _ _ _ _ 208 1,235 1,748 3,210 

Illinois 1, 025,099 989, 416 1,638,136 76,873 154,371 3,881,895 

Indiana 2,153, 008 2, 660, 250 4, 395,804 14, 399 42, 454 9,265,915 Kentucky 689, 703 2, 505, 707 1, 648, 232 1, 442 11,148 4,858, 232 

Louisiana 124,417 2, 277 166 1, 756 128, 816 Maine 27,292 3,394 19 30,705 Maryland 2,989,428 4,546,468 4,156, 331 16,752 31, 578 11,720, 557 Massachusetts 1,534,712 450,639 89,609 85,830 2,160, 790 Michigan 129,664 17,429 8,989 59,056 213,118 

Minnesota 79, 308 19, 217 3, 732 I, 775 58,102 160. 134 Missouri 175,452 11,010 4,293 11,908 202,681 

New Jersey 3, 777,855 • 679, 259 12, 679 80,014 4, 549,607 New Mexico 925 183 7, 566 336 9, OW 

New York 1, 038, 767 483,037 129, 517 12,381 64, 204 I, 707,901 

Ohio 1,282,820 567,292 14,077 19,174 1,883, 163 Pennsylvania 6,459,083 3, 765, 739 1, 362, 824 25,498 178,011 11, 789,155 Rhode Island 23,906 7,699 78 31,883 

Tennessee 1,129 1, 082 2, 211 

Vermont 1, 233 741 19 70 2, 083 Washington 19,484 6,292 53 25,829 Wisconsin 31, 290 4,746 9,072 4,805 49, 913 

Total 22,844, 540 17,021, 767 13,391,833 322, 456 3928, 576 54,509,172 

1 Includes imported as well as domestic liquors. 

2Represents high-proof spirits produced at distilleries 

] Includes 563,257 proof gallons of brandy, 179,864 proof gallons of mm, 123,094 proof gallons of gin, 29,818 

proof gallons of cordials and liqueurs, 12,228 proof gallons of vermouth, and 20,315 proof gallons of unclassified 

spirits. 

TABLE 72.-Distilled spirits: Wine gallons of spirits bottled by rectifiers and taxpaid bottling houses and bottled-in-bond spirits withdrawn on payment of tax from 

internal revenue bonded warehouses, fiscal year 1941 

[Wine gallons] 

Kind 

Products 

bottled by 

rectifiers and 

tax-paid botGing houses 1 

.Bottled-inbond withdrawals 

Total 

Whisky 106, 004, 279 13, 543, 847 119, 548,126 

Rum 1, 340,346 37, 846 1,378,192 

Gin 13, 315,798 1, 058 13. 316, 856 Brandy 1,897,937 112, 684 2,010, 621 

Cordials and liqueurs 3, 754, 858 3,754,858 

Alcohol 341,125 341, 125 Other spirits 151,872 151,872 

Total 128,806, 215 13, 695,435 140, 501,650 

1 Includes imported spirits bottled after withdrawal from customs custody or used by rectifiers. 
Month Production 

Total 

5,908,435 5,371,846 

5,088, 834 5, 409, 835 

4,025,107 4.321,274 

8,975, 647 4,259, 546 

3.397,067 3, 765,445 

3,812,164 3,778,863 

3,903,741 3,243, 127 

3,696,850 3,218.061 

4,466.063 3,813,807 

5,170,004 4, 557,135 

5,844, 209 6,385,049 

6, 125,729 5,678, 193 

55,213,850 52, 799,181 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

In barrels 

and kegs 

By pipe line 

for bottling 

2,617, 351 

2, 687, 310 

2,143,492 

2,062,841 

1,876,525 

1,833,473 

1,495,607 

1, 533, 522 

1,753,218 

2,047,977 

2, 453, 866 

2,453,832 

2, 754, 495 

2,722,525 

2,177,782 

2,196, 705 

1,888,920 

1,945,390 

1, 744, 521 

1,644,539 

2,060, 589 

2, 609, 158 

2,931,183 

3, 224, 361 

24,959,014 27, 840,167 

164 REPORT OF COMMISSIONER OF INTERNAL 'aviator 

TABLE 73.-Distilled spirits: Production, tax-paid withdrawals, and stocks on hand 

June 30, of whisky and of total distilled spirits; fiscal years 1934-1941, inclusive 

[Tax gallons] 

Produced Withdrawn tax-paid Stocks, June 30 

Fiscal year ended 

June 30- Total dis- Total dis- Total disWhisky tilted spirits Whisky tilled spirits Whisky tilled spirits 

I 

62,352,666 76, 506, 388 18,875, 964 22,946,622 57, 717,662 63, 065,017 

149, 112,923 169, 126,472 50,780, 940 58, 083, 021 152,807,235 160,756, 394 

223, 659, 539 253, 862,925 67, 299,166 76,330, 524 300, 658, 508 310,803,839 

223, 457,850 258,956,886 72, 616,195 87, 721,644 445,285, 663 462, 607, 980 

102,895,872 150, 155,924 68, 611, 650 85,949, 786 471, 159, 539 497, 527.756 

93, 003.917 145,326,176 72, 059,023 92, 427,100 478, 819, 618 522,058, 134 

98,993, 303 143,455,102 81, 267,368 103,981,635 480,937, 609 525,394,924 

121,851, 983 175, 208, 746 80,541,974 102, 685, 625 504, 080,691 551, 424,176 

'Exclusive of ethyl alcohol, for which see table 47. 

TABLE 74.-Fermented malt liquors: Production and tax-paid withdrawals, by months, 

fiscal year 1941 

[Barrels of 31 gallon ] 

Tax-paid withdrawals 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 165 

TABLE 75.-Fermented malt liquors: Breweries operated, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1941 

[Quantities In barrels of 31 gallops] 

State 

Number 

of brew- cries op, 

crated' 

Production 

- Withdrawals 

Losses On hand 

June 30 

Tax-paid Tax-free 2 

Alaska 

Arizona_ 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New York 

North Carolina 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

South Dakota 

Tennessee 

Texas 

Utah 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

Total 

wmw +rwmw~w~aw ffi~ wn ~wmm a ~~wma~r a6ra~a~w mr~~w ', 

$076 

20,258 

2,622,844 

262,004 

374,761 

49,888 

135,600 

243,709 

58,482 

81,684 

35,258 

3,792,385 

1, 754.151 

122,071 

896, 768 

1,007,474 

1,282,856 

1, 248,056 

2, 819, 674 

2,171, 299 

4,652,077 

196, 752 

382,427 

15,800 

30 670 

3, 570, 445 

8, 571,897 

91,764 

3,802,332 

55,940 

147,350 

6, 259, 887 

637,401 

$144 

172, 907 

875, 252 

126,282 

131,811 

870531 

23,948 

5, 553, 817 

54,338 

904 

17,348 

2,487,864 

256,027 

347,873 

.47,025 

125,040 

236,108 

60,176 

78,824 

34,563 

3, 683, 748 

1, 707, 093 

120, 298 

859, 251 

954,043 

1,231,390 

1, 143,975 

2, 744, 902 

2,067, 165 

4,419, 256 

187,095 

355,974 

15,184 

35, 461 

3,370,807 

8,264, 756 

90,611 

3,668, 273 

66,802 

193,643 

6,009,253 

691,392 

2,204 

165, 192 

849,852 

117,827 

127,295 

828,076 

22,411 

5, 325, 100 

60,560 

60 

198 

12,696 

1,294 

10,815 

030 

766 

1,386 

440 

431 

446 

62,296 

6, 569 

1,101 

5,967 

4,082 

9,389 

12,659 

11,915 

36,130 

41,507 

1, 705 

1,916 

57 

258 

28,674 

78,681 

52 

26,114 

437 

602 

39,181 

3,641 

52 

1,584 

3, 677 

661 

836 

3,322 

547 

67,022 

930 

45 

730 

88,829 

5,815 

23,.727 

1,718 

5,438 

7,813 

2,188 

1,849 

1,336 

121,857 

46,615 

6,254 

21,158 

38,422 

36,943 

77,232 

81,103 

69, 545 

159,853 

4, 594 

13,056 

877 

2,136 

163, 411 

292,419 

3,954 

122.827 

1,969 

5, 184 

225,330 

35,829 

105 

7,170 

31, 600 

5,669 

3,764 

23,102 

914 

178,245 

2,425 

L 172 

6,741 

305,198 

64,481 

60,135 

0,611 

25,100 

39,551 

11,710 

15,967 

6,887 

613,079 

288,004 

21,173 

132,494 

91,292 

169,139 

185, 205 

438,228 

344,589 

782548 

34,810 

70,983 

3,511 

, 4,864 

495,818 

1,468,100 

15,348 

632,188 

10,018 

33,150 

906,569 

101,488 

271 

27, 721 

152, 578 

23, 422' 

25, 669' 

187,071 

4,737 

1, 137, 761 

12,439 

574 55, 213, 850 52, 799, 181 479,034 1, 922, 057 9,037, 708 

Number operated during any part of the year. 

Including amounts consumed brewery PrembeS. 
166 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 76.-Fermented malt liquors: Withdrawals, tax-paid and tax-free, by States, 

fiscal year 1941 

r [Barrels of 31 gallons] 

Tax-paid withdrawals. Tax free withdrawals 

Total 

withdrawals 

State 

In barrels 

and kegs 

By pipe 

line for 

bottling 

Consumed 

on promisor 

For cereal 

beverages For export 

Alaska 

Arizona 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New York 

North Carolina 

Ohio 

Oklahoma 

Onlgon 

Pennsylvania 

Rhode Island 

South Dakota 

Tennessee 

Texas 

Utah 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

' Total 

904 

2,900 

261, 620 

109, 783 

202, 281 

25,118 

19,609 

25,671 

11.900 

10,909 

13, 102 

1, 526, 273 

904,490 

50, 034 

251, 824 

74,747 

479. 820 

769,609 

1, 085,036 

1,108, 798 

1, 772, 860 

114,005 

105, 905 

10,338 

22,184 

1,926,847 

5, 575, 494 

4, 396 

1,642, 260 

9,204 

61.837 

3,234,396 

 402,269 

1,197 

18, 831 

73, 915 

48,922 

6, 653 

385,650 

1,993 

3,085 ,484 

20, 412 

14, 448 

2, 228, 334 

146, 244 

145.292 

21,907 

105.431 

209, 437 

 48, 276 

67,915 

21,461 

2, 057, 475 

1, 302, 603 

70, 214 

607,627 

879,296 

751, 570 

374,366 

1, 659,886 

958.367 

2, 646, 396 

73, 090 

250,069 

4,846 

13, 277 

1, 443, 980 

2,689, 262 

89 115 

2,026.013 

47, 598 

81, 806 

2, 774,883 

189,133 

. 1, 057 

146, 361 

775.937 

68,905 

120, 742 

442,426 

20, 418 

2,23 616 9, 

30 148 

50 

146 

8, 385 

1,294 

3, 248 

600 

706 

1,386 

19,616 

1, 001 

4, 239 

11.509 

9, 208 

19, 288 

15,597 

44, 548 

18,120 

22, 905 

940 

431 

446 

6, 669 

3,940 

7, 333 

11, 915 

1,705 

1,916 

57 

258 

52 

437 

602 

39,082 

3,641 

52 

1, 584 

3, 677 

861 

836 

3,1172 

547 

430 

1, 237 

7,192 

835 

3, 629 

17, 657 

8, 784 

100 

I, 728 

1,150 

25,822 

7, 994 

3,074 

377 

41,845 

142 

2, 056 

18.590 

13,077 

16,476 

99 

150 

35, 333 

954 

17, 494 

2,500,550 

257, 321 

358, 388 

47, 625 

125.806 

236,494 

60, 616 

79, 265 

35,009 

3,646,044 

1, 713, 662 

121, 349 

865, 218 

958,125 

1, 240, 779 

1,156,634 

2, 756, 817 

Z 102, 195 

4, 480, 763 

188.800 

357,890 

15, 241 

35, 719 

3, 399,481 

8, 343, 437 

90, 563 

3,694, 387 

57,239 

144, 245 

6,018,434 

595,033 

2, 256 

165. 776 

 853, 529 

118, 488 

128, 131 

831,398 

2Z 958 

5 , 39Z 122 

50,990 

24,959,014 27,840, 167 271, 687 76,128 131, 219 53, 278, 215 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 167 

TABLE 77.-Fermented malt liquors: Materials used in production, by kinds and by 

States, fiscal year 1941 

State 

Grain and grain products i 

Sugar and 

sumps 

Hops and 

hop extract 

Malt Corn Rice 

Pounds Pounds Pounds Pounds Pounds 

Alaska 93,650 20,200 1,428 

Arizona 699,090 207,100 30,000 3,200 9,865 

California 92,180, 908 9,832, 860 19,175, 457 4, 967, 125 1,512, 713 

Colorado 9,039, 231 1,020, 050 1,960, 100 33,183 133,387 

Connecticut 13, 704,165 3, 691 , 785 59,970 2,048, 515 274,203 

Delaware 1,892, 150 707,900 1,680 30,215 

District of Columbia 4, 596,631 110,000 2, 098,000 96, 000 67,820 

Florida 8,397,104 721,600 2,008,285 718,530 140,475 

Georgia 1, 907, 630 688,300 307,350 36,170 

Hawaii 1, 975, 095 99, 700 4, 305, 980 227,823 24, 366 

Idaho 1,328,948 235,832 153, 242 9 965 20,097 

Illinois 122, 621,075 42,188, 375 10,494, 239 5, 309, 290 1,919,151 

Indiana 64, 783, 884 16, 427, 200 386,800 3, 584,888 903,446 

Iowa 4, 186,495 3,543,180 26,940 70,175 

Kentucky 30, 302, 493 4, 608, 000 7, 260,000 828, 789 498,812 

Louisiana 32, 724, 921 787, 500 7, 770,360 6,989,498 493, 782 

Maryland 47, 109, 634 8,401, 320 2,861, 653 6,421, 777 766,128 

Massachusetts 50,069, 127 6,538,085 2,036,800 11,312, 613 1,157,030 

Michigan 100,288, 203 24,893, 901 13,071,200 1,960,480 1,476,968 

Minnesota. 74,396,601 11,939, 798 1,184, 756 10,333,472 1, 134, 772 

Missouri 157,126,361 9, 613, 752 59, 725, WO 1, 570, 089 2,609 424 

Montana 7,674,301 289,420 1, 579, 200 474, 626 104, 935 

Nebraska 12,468, 318 3,111, 780 1,403, 600 310,192 173,692 

Nevada 531,441 183,900 31,000 8,055 

New Hampshire 1,085, 280 199,040 625,998 28,720 

New Jersey 136,065, 921 32, 735, 790 1, 715,191 13,225, 851 2,138, 701 

New York 314, 926, 393 83, 344, 382 15, 522,913 17,584,151 5,060, 212 

North Carolina_ 3,049,850 1,034, 000 687, 500 52, 690 

Ohio 129,452,874 38,445, 390 9,138,506 7,496, 457 2, 113, 619 

Oklahoma 1, 652, 575 273,280 443,944 43,500 30,798 

Oregon 5,409, 109 23,400 1, 583, 150 2,450 88,459 

Pennsylvania 227,040, 639 57, 523,323 7, 772, 865 23,957, 367 3, 786, 349 Rhode Island 22,432, 706 9 138, 718 933, 668 5, 790,996 559,199 

South Dakota 96,885 58 904 

Tennessee 6, 755, 380 454, 600 1, 762, 776 633, 050 74, 400 

Texas 30,018,130 524,200 11, 588, 650 706, 514 446, 512 

Utah 4,411, 935 490,090 843,500 67,529 

Virginia 4, 649, 720 1, 485,400 219 075 74,348 

Washington 31, 644, 262 1, 552, 697 8,029,244 539, 796 434, 360 

West Virginia 381,748 303,000 1,840 12,960 

Wisconsin 193, 640, 296 63, 747, 899 7, 409, 788 7, 531, 232 2, 645,112 

Wyoming 1, 900, 459 346,995 107, 900 174, 275 33,189 

Total 1,954, 267, 618 432, 341, 647 204, 297, 333 135, 531,375 31, 154, 678 

In addition, 3,508,975 pounds of wheat and wh at flakes. 

'TABLE 78.-Fermented malt liquors: Production, tax-paid withdrawals, and stocks 

on hand June 30, fisca years 1934-1941, inclusive 

[Barrels of 31 gallons] 

Withdrawn tax-paid 

Fiscal year ended June 30- Produced Stocks 

In barrels By pipe line June en Total and kegs for bottling 

1934 37, 678, 313 32, 266, 039 24, 254, 451 8, 011, 588 6, 908, 581 

1935 45,228, 605 42, 228, 831 31, 274, 069 10, 954, 762 7,766, 433 

1936 61,812,062 48, 759,890 32, 431, 298 16, 328, 692 8, 659,482 

1937 ,,_ 58, 748,087 55,391, 960 32, 462,136 22, 929, 824 9, 591,466 

1938 56, 340, 163 53,926, 018 29, 659,955 24, 266,063 9, 660, 903 

1939 53,870, 553 51,816,874 27, 086,889 24, 729, 985 9,447, 166 

1940 64, 891, 737 53,014,230 26, 010, 165 27, 004,065 9, 019. 354 

1941 55, 213, 850 52, 799, 181 29, 959,014 27, 840,167 9,037, 708 
168 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 79.-Cereal beverages: 1 Plants operated, production, and withdrawals, by 

States, fiscal year 1941 

[Quantities in gallons fl 

State 

Number 

of plants 

operated' 

Producetion Withdrawals On hand, 

June 30 

California 43, 834 33,316 6,115 

Connecticut 225,897 102703 83.080 

Illinois 12400 12,028 

Iowa 2170 1,860 

Kentucky 35, 743 35,875 1, 550 

Massachusetts 37,355 26,040 8,526 

Minnesota 608,592 613,095 83,356 

Missouri 76,260 87,621 3,948 

New York 379,812 328,468 91,641 

Ohio 202, 740 192,495 11.160 

Wisconsin 216,535 197,997 12,555 

Total 23 1,841, 338 1,622, 610 219,818 

1 Containing less than one-half of 1 percent of alcohol by volume. 

1 Standard United States gallons of 231 cubic inches. 

3 Number operated during any part of the year. 

TABLE 80.-Still wine: Production and withdrawals, by months, fiscal year 1941 

(W ine gallons 11 

Tax-paid withdrawals 

Month Production 2 

Tax-free 

withdrawals 1 Total 

Not over 

14 percent 

Over 14 

and not 

over 21 

Over 21 

and not 

over 24 

alcohol percent percent 

alcohol alcohol 

July 3,303,110 2,532, 462 3,385,007 1,384,073 1,994,252 6,882 

August 22, 118, 855 14,890,687 4,731,605 1,718,326 3,005, 619 7,660 

September 100, 161, 965 59, 758,057 6435,598 2,126 844 4, 100, 257 8.497 

October 105, 671,150 64,897,940 8,783,110 2,667,328 6,102,541 13,241 

November 35,644, 533 24, 782,460 10, 240, 647 3,138,693 7,071,487 30, 487 

December 10, 150, 584 6,959,863 10, 252,910 3,074, 751 7, 163,909 14,250 

January 2, 087, 458 2,419,698 6,682,751 1,999,786 4, 867,692 15, 273 

February 1,666,698 1,479,059 8,983,892 1,964.371 4,994,535 24,988 

March 856,628 728,051 7, 933, 475 2, 202, 692 5,680,912 49,871 

April 1,709, 391 1,714,726 8, 050, 718 2, 288, 498 5,723,00S 39,212 

May 1, 364, 809 1,302, 949 7,269, 588 2, 026,352 5, 219, 532 23.704 

June 1, 636, 242 1,348,212 7,543,032 2,030,246 5,782 387 30, 399 

Total 286,371, 423 182, 812,064 88, 592, 333 26,621,960 61,706,131 234, 242 

1 Standard United States gallons of 231 cubic inches. 

I Production represents the amount removed from fermenters, including wine to be used as distilling 

material in the production o brandy. Increases by amelioration and fortification occurring after removal 

from fermenten are shown in table 83. 

Includes 179.360.694 gallons removed for use as distilling material, of which 163,601,277 gallons were 

"substandard" wine (i. 4, produced with excessive water or residue materials); 1,561,675 gallons removed 

for the manufacture of vermouth; 956.027 gallons removed for the manufacture of champagne or artificially 

carbonated wine; 722,547 gallons removed for export; 166,196 gallons removed for the manufacture of vinegar; 

41,931 gallons removed for family use; and 44 gallons removed for the use of the United States. 

REPORT OF COMMISSIONER OF INTERNAL. REVENUE 169 

TABLE 81.-Still wine: Bonded wineries and bonded storerooms operated, production, withdrawals, losses, and stocks on hand June 30, by States, fiscal year 1941 

[Quantities in wine gallons] 

State 

Number of 

premises

1 operated Product 

lion 1 

Withdrawals 

Losses On hand, 

June 30 Bonded 

,., 

willeri&s 

Bonded 

storeroonas 

only 

Tax-free Tax-paid 

Alabama 

Arkansas 

California 

Colorado 

Connecticut 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Iowa 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Nevada 

New Jersey 

New Mexico 

New York 

North Carolina 

Ohio 

Oregon 

Pennsylvania 

Muth Carolina 

Tennessee 

Texas 

Virginia. 

Washington 

West Virginia 

Wisconsin 

. Total 

Oa CO ,I NI. .1—i 

0, -1 

4,457 

645,301 

272,073,331 

17,035 

55,612 

829,886 

54, 349 

30,720 

15,129 

78, 517 

1,324 892 

28, 139 

895 

735,852 

12,259 

5, 501, 953 

284,972 

1,424 325 

344.245 

70,838 

7,448 

14,079 

3.34, 258 

2,235,600 

2,975 

36,024 

1,175 

500 

192, 233 

12, 425 

227 

63,427 

179,683, 262 

1, 600 

302 

60,486 

38, 513 

2,851 

313 

2,400 

1,961 

14,129 

106,233 

52 

410,730 

430 

1,186, 365 

795 

218,072 

186,129 

16,344 

35 

103 

82,068 

723,915 

6,123 

7,399 

445 

528,176 

45, 954, 012 

474,986 

741, 346 

50.408 

814,414 

12, 442 

398 

4, 267, 480 

93, 603 

6,971 

589, 591 

281,714 

1,928,286 

1,479,622 

10, 887 

158,959 

45, 512 

9,719,422 

15, 571 

18,037,060 

70,833 

2,454, 903 

231, 900 

2, 384, 731 

5, 750 

19,452 

1, 555,102 

1, 295, 327 

169,361 

194,671 

182 

42,588 

5,145,856 

7,600 

13, 236 

6,719 

28, 313 

1, 253 

123 

54,385 

1,070 

37 

7,105 

2, 874 

20,036 

66,469 

1,077 

6,819 

1, 205 

76068 

727 

685,893 

51, 767 

136,671 

46,419 

14,310 

806 

2, 021 

33, 489 

105,290 

1,420 

1,988 

2.175 

1,00( 

487, 287 

99, 538.40(1 

88,182 

97.161 

82,887 

237,136 

169211 

1,865 

811,348 

31.369 

18,105 

91,862 

92.220 

186647 

1,901, 580 

42, 561 

149.859 

14,851 

1, 281, 708 

12, 049 

7,922,446 

146823 

2,460, 534 

265,372 

463,025 

3, 342 

17,290 

282,184 

1,184, 109 

16,520 

46,906 

1,064 106 286, 371, 423 3 182812,064 88,592,333 6 563,991 117,886.723 

1 Number operated during any part of the year. 

Production represents the amount removed from ermenters, ins tiding wine to be used as distilling material in the production of brandy. Increases by amelioration and fortification occurring after removal 

from fermenters are shown In table 83. 

3 See footnote 3 of table 80. 

423348-91--I2 
170 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 82.-Still wine: Tax-paid withdrawals and stocks on hand June SO, by alcoholic 

grades and by States, fiscal year 1941 

[Wine gallons] 

State 

Tax paid withdrawals On hand June 30 

Not over 

19 percent 

alcohol 

Over 14 and 

not over 21 

percent 

alcohol 

Over 21 and 

not over 24 

percent 

alcohol 

Not over 

14 percent 

alcohol 

Over 14 and 

not over 21 

percent 

alcohol 

Over 21 and 

not over 24 

percent 

alcohol 

Alabama 

Arkansas 

California 

Colorado 

Connecticut 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Iowa 

Kentucky 

Louisiana 

Maryland 

Mageochusetts 

Michigan 

Minnesota 

Missouri 

Nevada 

New Jersey 

New Mexico 

New York 

North Carolina 

Ohio 

Oregon 

Pennsylvania 

South Carolina 

Texas 

Virginia 

Washington 

West Virginia 

Wisconsin 

Total 

51,586 

11, 145, 348 

71, 231 

183, 560 

49,722 

640,793 

69 

1, 228, 385 

4,986 

1,494 

338,815 

84,859 

308,666 

139,861 

1,899 

43,627 

26,443 

1, 755,621 

8,915 

7,717,280 

68,583 

1, 151,347 

140,029 

572,380 

1, 251 

15,276 

306,683 

483,027 

14,010 

62,869 

445 

380, 531 

34, 709, 888 

556, 049 

3,037, 574 

2, 961, 628 

10, 310,491 

1,193, 732 

403,755 

686 

173,621 

12,142 

327 

88, 617 

4, 977 

250,776 

196,855 

1,619, 720 

1, 339, 761 

8,988 

114,832 

19,069 

6, 656 

2,250 

1,303, 556 

91,871 

1,812,351 

1,499 

4,176 

812,300 

155,351 

131,802 

96,059 

98, 776 

1, 737 

1, 521 

2,173 

9,289 

64, 687 

323,663 

32,138, 570 

46,233 

22,509 

77,821 

193,687 

4,616 

400 

255,442 

8, 721 

5,339 

37,435 

59,937 

37,466 

1,042,049 

8,956 

120, 141 

11,824 

691,000 

10, 731 

3,450, 856 

145,805 

1,836, 526 

101,245 

163,001 

2,245 

14,345 

57,621 

274,474 

877 

25,923 

125,064 

64, 180, 599 

70,428 

850,482 

561, 301 

4, 336,994 

617, 183 

297,114 

141, 137 

900,173 

1,009 

41,899 

5,066 

43,443 

11,307 

1,465 

555.906 

22,648 

12,786 

54,427 

32,283 

143, 181 

33,606 

29,718 

3,027 

1, 318 

1,028 

161,127 

1, 297 

2,945 

15,643 

20,983 

38,560 

3, 219, 240 

4, 224 

9,099 

9,407 

134, 596 

6,825 

2,910 

3,426 

9,462 

26,621,960 61, 706,131 264,242 41, 172,458 73,276, 566 3,437,699 

TABLE 83.-Still wine: Amelioration and for ification occurring after fernientation, by 

States, fiscal year 1941 

[Wine gallons] 

State Wine ameliorated 

Resulting 

product 

Wine fortilied Resulting 

product 

Alabama 

Arkansas 

California 

Colorado 

Connecticut 

Florida 

Georgia 

Hawaii 

Illinois 

Maryland 

Michigan 

Missouri 

New Jersey 

New Mexico 

New York 

North Carolina 

Ohio 

Oregon 

Pennsylvania 

South Carolina 

Texas 

Virginia 

Washington 

Total 

2,299 

724,775 

6, 978,012 

37,266 

7,739 

27,414 

1, 173,805 

2,120 

13,477 

76,510 

1,477, 196 

28,876 

545,626 

917 

3, 571, 596 

52,062 

808,122 

107,087 

38,975 

4,250 

18,688 

174, 635 

2, 298, 274 

832, 427 

8,030,849 

10,3133 

8, 589 

1, 257,819 

2, 236 

1,638,155 

35,609 

570,624 

3, 895, 211 

878,608 

114, 709 

186,452 

2, 397, 054 

2,408 

29,067 

14,479 

82,221 

947 

56,120 

43,201 

4,506 

20,356 

479,823 

72,475,696 

2,193 

7,416 

5,185 

15, 317 

754,731 

9,579 

260,994 

1,227,431 

562,069 

41,045 

183, 117 

636, 921 

5435,414 

85, 261,691 

2,564 

8,653 

6,218 

18, 558 

816,663 

10, 131 

358,289 

1, 373, 373 

645,982 

55, 541 

241, 671 

725,271 

18,169, 721 20, 142, 630 76,661, 517 1 90, 090, 019 

In producing fortified wine, a total of 25,364,793 proof gallons of brandy and 673 proof gallons of tax-paid 

alcohol were used. 

IMPORT OF COMMISSIONER OF INTERNAL REVENUE 171 

TABLE 84.-SUU wine: Materials used in production; by kinds and by States, 

fiscal year 1941 

Kind Arkansas California New Jersey New York 

A. Fruits, berries, etc. (pounds): 

Grapes 4,020, 763 1, 991, 1,11, no 1,630,604 13, 023, 276 

Raisins 10,672,638 7,000 6,075 

Blackberries 325,484 119,530 833,963 2, 120, 594 

Aples 720120 , 

Lopganberne 129, 240 38,320 42, 250 

Cherries 1,609 611,174 1, 650 47, 325 

Peaches 29,750 49,932 167,860 

Apricots 316,330 2,000 59,975 

Pears 1,000 

Plums 994 190,875 

Elderberries 2,200 

Youngberries 39, 768 

Honey 77,851 

Boysenberries 18,369 

Other 10, 533 3, 145 

B. Juices, including concentrates (gallons): 

Grape 39,172 188,696 12, 655 1, 216, 698 

Apple 8,647 177,850 270,510 55,333 

Blackberry 6,750 681, 070 

Cherry 3,565 20,230 

Loganberry 25,450 

Other 200 

Kind Ohio Oregon Washington 

All other 

States 2 Total 

A. Fruits, berries, etc. (pounds): 

Grapes 5, 922, 266 755, 593 11,868, 165 3 15, 772, 728 2,095,004, 675 

Raisins 4322, 209 14,007, 922 

Blackberries 313,940 74, 555 921,173 & 9,127, 710 8, 336, 949 

Apples 808,884 598,800 1, 227, 194 63,360 3,008,358 

Loganberries 261, 218 1, 242,992 763,905 

Cherries 14, 966 61,825 964,688 124, 538 1, 727,675 

Peaches 308,370 01 163, 124 1, 719,036 

Grapefruit 4601, 580 604,580 

Currants 83,116 476,075 559,191 

Apricots 34, 131 912,430 

Pears 398,000 2,640 901.640 

Plums 149,599 878 342,340 

Prunes 268,846 268,845 

Guava Z38, 850 228, 850 

Elderberries 300 132,588 135,086 

Oranges 134, 964 139, 984 

Gooseberries 123, 189 123,189 

Youngberrles 20, 766 27,175 548 83, 257 

Honey 720 78,571 

Huckleberries 925 25,725 26,650 

Boysenberries 18, 369 

Olympic berries 13, 493 13,198 

Other 305 1, 100 3,379 640 19,102 

B. Juices, including concentrates (gallons): 

G 

Apple 67, 028 108, 576 344,221 0229, 379 1, 262444 

Blackberry 1,634 2,749 1,978 161,597 756,678 

Peach 101,928 101, 426 

Cherry 2,825 5,145 12,097 43, 862 

Loganberry 4, 126 34 29, 610 

Other 2, 629 565 1,482 8,541 13,407 

1 Exclusive of sugar and other sweetening material. Represents fermenting material crushed or pressed 

and deposited in tormenters for the production of wine, including wine used In the production of brandy. 

2 States in which more than 250,000 pounds or 100,000 gallons of a given material were used are footnoted. 

Includes 707,994 pounds used in Maryland, 785,138 pounds in Iowa, 11,148,435 pounds in Michigan, 

.312,580 pounds in Missouri, and 1,827,328 pounds in North Carolina. 

Includes 288,925 pounds used in Louisiana. 

Includes 2,956,001 pounds used in Georgia and 273,743 pounds in Michigan. 

Includes 952,120 pounds used in Georgia. 

Includes 595,540 pounds used in Florida. 

Includes 141,880 gallons used In Virginia. 
1., g Xt8& 

93 

172 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 85.-Sparkling wine:' Production and tax-paid withdrawals, by months, 

fiscal year 1941 

[Number of half-pint units'] 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 173 

TABLE 87.-Sparkling wine: I Tax-paid withdrawals and stocks on hand June 30, 

by size of container and by States, fiscal year 1941 

[Number of half-pint units 1] 

Tax-paid withdrawals 

386,105 

1,497 

2,316 

8,914 

7,908 

11,499 

16, 524 

3,483 

5,714 

6,039 

7, 326 

7, 270 

7, 615 

Tax-paid withdrawals 

1,883,760 

In pints 

928 

22, 368 

193, 386 

172, 336 

884, 356 

52,652 

120 

540 

744 

16,284 

96 

549,084 

10,856 

10, 725, 276 

In 'quarts In other 

sizes 

1,469 

5,232 

4L 360 

28,405 

6, 607 

1,836 

1,296 

'86,105 

In half pints' 

315,298 

868 

69, 385 

96 

On hand June 30 

Month 

July 

August 

September 

October 

November 

December 

January 

February 

March 

Apra 

May 

June 

Total 

Production 

588, 936 

889, 795 

993,886 

1,071,916 

1,462,857 

1, 681,407 

1,234,023 

1,258,604 

1,002. 712 

2,826,069 

3,018,094 

2, 384, 337 

18, 210,635 

Total 

382,972 

410,189 

1,038.060 

1,678,015 

2, 510, 330 

3,272,378 

776,782 

672,783 

708,346 

797,039 

1,043, 258 

1,174,024 

14,464,136 

In half 

pints 

76,069 

87.292 

150.028 

195, 745 

260, 759 

306, 700 

89,103 

90,351 

100, 177 

145,781 

139.624 

127, 371 

1, 769, 005 

In pints 

66,270 

54,648 

137,982 

198,830 

364,764 

429.102 

102.252 

70,998 

83.358 

92, 852 

140.932 

142.662 

1,883,750 

In quarts 

239,136 

285,888 

742,036 

1,275,532 

1,873,308 

2, 520,052 

581.944 

505,720 

618,772 

551,080 

755,432 

896, 376 

10,725,276 

State 

Arkansas 

California 

Illinois 

Louisiana 

Meemzebusetts_ 

Michigan 

Missouri 

New Jersey. 

New York 

Ohio 

Pennsylvania. 

Virginia 

Washington 

Wisconsin 

Total_ 

In half 

pints 

168 

149, 656 

9, 349 

144 

58, 572 

120,113 

868.386 

547,788 

14,002 

48 

------- 

5,784 

1,769,005 

In pints 

926 

683,958 

15, 514 

2, 310 

20, 340 

385, 584 

174, 444 

1,477,086 

278,840 

600 

810 

680 

5, 690 

9, 046, 782 

In quarts 

680 

2,934. 528 

33,220 

7, 884 

106,388 

1, 789, 740 

988,920 

5,672,596 

789,088 

684 

8, 792 

12, 332,500 

In other 

sizes 

2,780,452 

68,916 

240 

1,816 

80,832 

986,432 

1, 256, 392 

5,211,200 

255,932 

624 

84,440 

96 

18, 346 

3,314 

128,221 

85,808 

7,382 

72 

119 

2,096 

In other 

sizes 

116,834 

11,928 

12,248 

21,790 

13,226 

1,077 

4 177,673 

570 

1 Includes champagne, other sparkling wine, and artificially carbonated wine. 

1 Reported figures have been converted to one-half pin units. Data on sparkling wine are reported to the 

Bureau in bottles and other containers of varying sizes according to the number o taxable units contained. 

The tax is payable "on each one-half pint or fraction thereof" of "each bottle or other container. 

I Represents 12,465 half-pint units in three-fourths quarts, 73,600 half-pint units In magnums, and 40 

half-pint units in miscellaneous containers. 

TABLE 86.-Sparkling wine: 1 Number of producers, production, withdrawals, losses, 

and stocks on hand June 30, by States, fiscal year 1941 

[Quantities in half-pint units 1] 

State 

Number 

of producers 

operaling ' 

Prodnc 

tion 

Withdrawals 

Losses On httnd 

June 30 

Tax-paid Other 

Arkansas 

.NN N V. I■ t■ N M. 

264 24 1, 964 

California 4,741, 540 3,480,661 179, 082 132, 330 8,804, 705 

Illinois 82,116 428 48,830 

Louisiana 240 

Massachusetts 2,888 10,290 

Michigan 257,146 161,772 4,728 145,074 

Missouri 2,055,045 83, 211 144,052 2, 190, 566 

New jersey 2,84, 195 2,833

1,305,163 

 ,474 66, 797 46, 112 1, 303.836 

New York 7, 744,016 8,851, 249 45,357 289, 245 7,257,280 

Ohio ____ 453,027 329,093 55,487 1,088,586 

Oregon 1,070 

Pennsylvania_ 792 8 1,336 

Virginia 2,376 118 2,006 

Washington 2,040 62 1,250 

Wisconsin 116, 666 106,608 93 16, 578 

Total 4107 18, 210, 635 14,464,136 1375, 517 672,687 15, 872, 251 

1 Includes artificially carbonated wines as follows: Production, 1,391,098; tax-paid withdrawals, 1,367,005; 

other withdrawals, 19.962; losses, 11,734; and on hand June 30, 275,589 half-pint units. 

1See footnote 2 of table 85. 

3Number operated during any part of the year. 

4 IS addition, 5 bonded storerooms in California, 3 in Illinois, 1 in Louisiana, 1 in Massachusetts, 21n New 

York, 1 in Ohio, 1 in Pennsylvania, and 1 bonded field warehouse in Wisconsin. 

1 All converted into still wine with the exception of 180,647 half-pint units removed in California, Missouri, 

New Jersey, and New York for export. 

1includes art noisily carbonated wine as follows: Tax-paid withdraws s-in half pints, 312,813 in pints, 

182,060; in quarts, 844,400; and in other BIM, 27,732 half-pint units; stocks on hand June 30-In half pints, 

29,803; in pints, 83,584: in quarts, 159466; and in other sizes, 2,626 half-pint units. 

2See footnote 2 of table 85. 

3Represents 12.465 half-pint units in,tiaresiousgehe quarts: 73;600 haifyintnnitvirinagnums, ant040 half. 

pint units in miscellaneous containers. 

Represents 12,630 half-pint units in three-fourths quarts, 105,192 half-pintunits in magnums, and 69,851 

half-pint units in miscellaneous containers. 

TABLE 88.-Vermouth:' Production and tax-paid withdrawals, by months, fiscal 

year 1941 

[Wine gallons] 

Tax-paid withdrawals 

Over 14 and Over 21 and 

not over 21 not over 24 

alcohol 

percent 

alcohol 

50,415 

80,865 

59,470 

128, 218 

165, 2,30 

136,137 

149, 770 

137, 442 

162,756 

201,005 

185, 815 

153, 528 

1,610, 701 

1 For production of vermouth at rectifying plants, see table 68. 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

Month Production 

1,077,382 

Total 

37,792 

43,440 

59, 307 

96, 725 

126, 208 

146,179 

86, 379 

77, 543 

104, 400 

95, 634 

110,486 

94, 289 

Not over 

14apercent 

393 1,076,405 

37,735 

43, 337 

58, 792 

95, 603 

126,985' 

146.007 

86,279 

77,394 

104,235 

95,403 

110.406 

94,230 

1, 584 

67 

55 

495 

82 

169 

118 

93 

72 

165 

'138 

81 

59 
Still wine (wine gallons) Sparkling wine I (half-pint units/ 

Fiscal year ended 

June 30- 

Produced [ Withdrawn 

tax-paid 

Stocks 

June 30 Produced Withdrawn 

tax-paid 

Stocks 

June 30 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

77, 778, VS 

91, 930, 362 

170,903, 1013 

122,045,241 

228,726,368 

231,959,287 

212,367, 737 

286,371,423 

14, 525,688 

35,416.512 

47, 933, 5.52. 

62, 117, 999 

61, 328,799 

67,563,672 

82, 570,831 

89,669, 715 

50,168, 336 

56,476,590 

78,471,573 

68, 176,305 

102, 119, 796 

94, 947,598 

93,421,179 

118,529,739 

10,657,488 

6, 214,445 

8,277,011 

9, 622,525 

9,780,274 

6,683, 762 

9, 634, 791 

18, 210, 635 

5,688,456 

5,276,263 

5,799,429 

7,906,213 

7, 223,416 

6, 337, 846 

8,376, 590 

14,464, 136 

9,016,440 

9,273,563 

10, 781.785 

11,648,069 

13, 248, 748 

12,943,627 

13,207, 501 

 15,872,251 

Seizures 

Month 

Stills Distilled 

spirits Wine Mash Automobiles 

Property 

(appraised 

value) 

Persons 

arrested 

Trucks 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

Z 099 

Z 304 

2. 250 

2, 354 

1,904 

2, 362 

15, 248 677,811 386 35 226, 767 2, 299 

3,726 837, 324 320 24 167, 618 2, 127 

5, 208 869, 354 418 36 221, 248 2,391 

Z 633 619, 091 325 38 103,136 2, 039 

1, 758 541,457 304 33 163,192 1, 958 

3, 659 524, 529 320 36 165,833 1, 927 

6Z 502 6,868, 078 4, 299 453 2, 424, 565 28,010 

867 

939 

817 

' 1, 045 

812 

1,120 

1,169 

1,036 

1,107 

I, 083 

931 

900 

Gallons 

9.54 

22,844 

24, 551 

22.755 

19,077 

25, 273 

27, 070 

18, 775 

22, 

22, 638 471

23,713 

22, 275 

Gallons 

946 

584 

116 

4, 527 

12, 785 

11, 352 

Gallons 

482,632 

515,523 

420,614 

575,127 

510, 309 

694,307 

+11,826 5 275, 396 

373 

388 

405 

395 

301 

366 

97 

42 

33 

36 

34 

55 

$398,510 

194, 826 

158, 547 : 

182, 568 

137,975 

224,544 

174 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 89.-Vermouth: I Number of premises operated, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1941 

[Quantities in wine gallons] 

State 

Number 

°f premises 

operated+ 

Production 

Withdrawals 

Losses On hand 

June 30 

Tax-paid For export [ 

California 

Connecticut 

Illinois 

Kentucky 

Maryland 

Massachusetts 

New Jersey 

New York 

Ohio 

Pennsylvania 

Virginia 

Wisconsin 

Total 

4txtr. c,c grom. 0 

596,146 

1, 600 

2,105 

1,921 

212,368 

761,940 

13,567 

14,267 

6,787 

187,631 

191,523 

647,909 

9.939 

19,794 

877 

9,046 

8,197 

299 

642 

1,525 

10,006 

6,331 

9,209 

13,115 

252 

462 

411 

2,770 

17,878 

262 

23 

47 

24 

309,192 

7,129 

11,277 

477 

2,143 

4,122 

51,035 

235,931 

7,859 

8, 107 

405 

5,239 

195 1, 610. 701 1, 077,382 25.546 35, 244 643,016 

I For production of vermouth at rectifying plants, see table 69. 

Number operated during any part of the year. 

Includes 2 galleys withdrawn for family use and 3 gallons withdrawn for use of United States. 

TABLE 90.-8E41 and sparkling wines: Production, tax-paid withdrawals, and stocks 

on hand June 30, fiscal years 1934-1941, inclusive 

I Includes champagne, o her sp 

Represents amount removed 

production of brandy. 

Includes vermouth produced 

TABLE 91.-Enforcement, 

I Includes seizure and arrests in cases adopted as well as in cases origin ated by the Alcohol Tax Unit. 

Not including s ills seized at cleaning and cracking plants. Nine such plants were seized during the 

year 

I Not including 413 gallons of denatured alcohol and 39,048 gallons of tax-paid liquors seized. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE. 175 

TABLE 92.-Enforcement, Alcohol Tax Unit: 1Seizures and persons arrested, by 

States, fiscal year 1941 

State 

Seizures 

Persons 

arrested 

Stills Distilled spirits Mash Wine Automo- piles Trucks 

Property 

(appraised 

value) 

Gallons Gallons Gallons 

PRP" n151 '0. 8 iUW:t3i""IggE 2 WMg '-"V= RW" 

4c; 4 4Dt 4 

92,177 

4 44 4 

13,981 

Alabama 1, 347 23, 262 484, 403 4 447 $159, 947 

Arizona 3 55 290 130 2 . 272 

Arkansas 210 2,471 77,950 41 31,076 

California 90 2, 947 27, 753 37, MO 14 4, 194 

Colorado 511 

Connecticut 13 1,006 4,006 382 16 3, 493 

Delaware 8 310 1,480 10 258 

District of Columbia 2 451 800 10 1, 580 

Florida 581 14, 077 392,079 527 225 155,813 

Georgia 1, 939 48, 691 1, 211, 435 2, 807 338 223, 536 

Hawaii 8 34 266 314 

Idaho 2 10 

Illinois 103 7,058 351,809 28 54 102 304 

Indiana 62 1,849 19,040 32 9, 588 

Iowa 10 595 493 21 5,835 

Kansas 28 356 4,240 15 97 34,280 

Kentucky 683 11, 749 182, 975 22 189 87,866 

Louisiana 68 227 5,551 140 9 6,508 

Maine 7 646 1,380 24 1 738 

Maryland 168 3,349 80,640 88 52 23, 959 

Massachusetts 37 2 030 28,465 25 17 11,785 

Michigan 28 146 1, 145 909 4 1,988 

Minnesota 17 416 1, 247 606 9 2, 940 

Mississippi 502 7,446 171,941 168 

A 

81,873 

Missouri 26 1, 521 2,630 146 115,417 

Montana 9 61 270 1 742 

Nebraska 2 34 183 250 158 

Nevada 1 ' 1,209 

New Hampshire__ I 7 150 13 402 

New Jersey 45 4, 317 278,472 267 31 22, 994 

New Mexico 4 111 160 3 1, 485 

New York 397 30, 716 890,889 5, 216 230 502, 573 

North Carolina 1, 245 28, 365 883, 324 582 195, 933 

North Dakota 14 19 104 

Ohio 264 6, 935 60, 531 2, 562 129 27, 576 

Oklahoma 378 4, 967 91, 830 162 60, 084 

Oregon 12 33 356 4 1,481 

Pennsylvania 282 7, 419 118, 752 9,135 132 117,964 

Rhode Island 9 306 3, 651 9 1, 096 

South Carolina._ 609 15,301 333,581 252 

South Dakota 2 21 I 15 

Tennessee 930 17, 676 459, 281 304 132, 420 

Texas 512 2, 818 85, 506 703 172 : 58, 053 

Utah 

Vermont 288 1 254 

Virginia 878 24,890 777,545 343 137,380 

Washington 16 28 946 963 3 2,542 

West Virginia__ 293 1, 644 37,806 19 35 

Wisconsin 4 752 100 31 3 4,019 

Wyoming 1 5 35 120 5 

Total 5 11,826 5 275, 396 6, 868, 078 82,502 4, 299 453 2,424, 585 26,033 

Includes seizure and arras s in cases adopted as well as in cases originated by the Alcohol 'Pax Unit. 

[ Not including s ills seized at cleaning and cracking plants. Nine such plants were seized during the 

year. 

Not including 413 gallons of denatured alcohol and 39,048 gallons of tax-paid liquors seized. 

arkling wine, and artificially carbonated wine. 

from tormenters, including wine to be used for distilling material in the 

at wineries. 

Alcohol Tax Unit: 1Seizures and persons arrested, by 

months, fiscal year 1941 
------------

----

';;t oil decision 

(TI) RESULTS OB'rAI~ED IN CASES CLOSED 

Pcrcent 01 dellcionc\' in tax slIstllirl\"l, ·1 U. Pl'r~nt al Il~t d,·.flek'n(:)· and penult}· ~ll'tr,incd, ·11.4. 

4.494 $20. GOO. 760 ~:!'l4.473 $2, 135," 

J20 0Ii7,Sl·J G9!\ 36,767 

Ilo'l -1.230.715 S~,6Si 82." &17 ........ ---_. ­ - - --­ --­ IllI2.lIUO 

---­ t',lJh;) I ~'J ..'''". ~Ill I 314.81\l1 I 2.1141.226 

1.656 I 36. lfj(). r,$1 5Ol. 7~ I 140.201 6.0.)\ 136. 2tH. 858 2,41>1.730 4. MlI.86J 

11.511-1 2::, 4J.9. 001 J 4, 1:3. :~p I ~. \l7~6UI !l.OM "'. ~/j-l. 939 !!'!lO. ,,3 3. 1\9.6ft4l 2,205 75, ,;''IS, 769 SfIS.330 630.28lI -­ --­ 8.270 133, oo.~. 70s 1.7·19. 103 3, N\).917 := 

2, G-16 ll4,8-I2.0:12 2,116,415 2.828, 10 

678 IS, tJ73, 3.51 287.001 3\l2, N8 

3. 324 1 110. 'llr., 3S:l 2,404, 316 1 3,221.... 

TECHNICAL STAFF 

176 REPORT OF COMMISSWNER OF INTERNAL REVENUE

I Far caS>.'s ori~lnlllly «'cdycd 10 pre·90·dll)' slllh". ",,,aunt of rewnue a~cnt'61inding:tor •• arIglnal17 recel\'ed III 9l).do)' status••mOllut of stlltutor)' notice. 

PcodlTIJ: at <'D'1 al year: Awoitinl!;RtnITllctfOll .. __ __ ._ .. 

Awaiting taxpayer'~ actiOll 00 stlltutory nati"" dl­ rec!.L'<! or sustaincd. __ _ _ 

Tats!.. .•.• 

TABLE !l3.-,171alysia of the work of the 1'cchnical Staff dUr/:ng the fiscal year 1941_ 

income, profits, estate, and (Jift tax casCIl 

FIEI.n OPERATIONS-ALL DIVISIONS, CONSOLIDATED 

PART I-CASES NOT DEFORE THE BOARD OF TAX APP£AL~

(A) PROORESS OJ. WORK 

--- Numhcr I I IOyc,­ of ('"-SOS J)cJieiencs' Penalty 'I mcn' in t-RX _ 

---1---­

I I Hewl1ue agenl'S lI.ntllog or .tah~ notl(.'C l 

: ~;)~~~~r I ndiclency I Penulty IO"~r~-:: lu~ta~ mCDt 

P~n<lln!! nt heglnning 01 yetlr: -------1----'-­ -----,---- Awaltln!!StatTnctlOD_ c · __ ·· __ ···•·••• ••••-­ ..--.­ 3,487 S70,W3,G97 I $1.183,933 $'J.32I_ Awnlli,,/: tll'llay~r's :INion 00 statutory notice <II. • rcc!A'd or sllstolrled.. • ._ .. _•..•• _ 

RCCl'lv.)<I <lllrln!; yellr (nct---transl"rs. Cle." dedlle-ted) __ '1 I 1_ 

'rotaL •. 

Disposc<} 01: 

CJ!OSCl1.._ •...... _.••.•.•_ •••••••••. _•• _••••..• _ Potitioned to BOllr<l •••_•• ._._ _. 

Total dlsposcd 01 . 

AKr~lIIcnts ao arigil.llli consldcrulloo (including ngreed ovorns.ses.~rn(\IlUlLnd H~T('l'd elalm r"jrctlons) ___ ... A/:(1JOlllcnl·s on reconsideration "ner statutory notioo dirccted hy Stll!! •• _. __ ... _._...... ... __ 

DefalJlts "ftf'r cOIlSltleratian hy St"llI in prc·9O-doy or \lO·dl\~· status (110 /lolll.ion filed) __ . __ Unal!n,od O\'('fllSSCSStllOnts and claim reJecl!ans .• 

j I I TotaL _ __ ••••••.••••• 

REPORT OF COMMISSIONER OF INrl'ERNAL RE\'ENUE 177 

l' .~l'Ir.E 93.-Analy~is of the work of the T(lcJ~llic(ll Staff during ':he fiscal year J!)41­

Income. ]Irojits, estate, and gIft tax cases-Cun(.muecl 

Io'(ELD 0I'EIl.\,·!lONS-ALL Drvlsw~s, CO:lfSOLLVATf:o-Contiuued 

P ....lIT U-'CASES DOCf:t:TED BY BOARn o~' '.f ....x AI'PEALS 

(A) l'ROORI::SS OF WOUK 

.---_.--.._----­

$200.53SOvnra.s~s.'5'

nIl'nt Penalty 

ss. 173.212 

Defieiene,' 

in tux 

1,355 $125,441.696

Number 1---'----;---­ of (:aseJl 

2,117 1 1. -.........•\ 

Amannt stlltcd In stalutary notice I 

pcnc.lira.g at be~innillg or year .• 

U(\('(llvrd dllriw year (not-·tr(lTI~I(·r" NC.. deductcd) : 

C,,~s considered hdonlpetitian .---.. --••-- -~ ------­

~~--:; ~~~t~~~d~';~~ t~~?:~ !~"_tltl~n~~:~.:::~:::::~: 2, 6~~ I':::"'::::::~ -..::::::.=-- .::~~:::::::

'I'otnl recciplL••_ _ _'J, 732...=14.~, r~33ll • _~~~l71--~~' 211 

1'ot"lla be accounted ror. .. 9.0861 26ti,O:lJ.933 12,601,1>l~ 3.713.749' 

J)lspOStc'J 01 duriuQ y("ar~

Closed by slipnJatio!l-nl:r~c"settlement ' .......•. 71. 9~3. 849 '1,266.726 831.000 ('1""'11 by d"mis",,1 ar d~tnnlt ._..... 0< ... -- -''''.''' 32,275 6.298 Tried he'fore Bonnl on merits . . __ . __ ~'I,~n1g i 8S5.® 18-1.2.0 --, 'l'otal dispos"d of_. _.. _ 4,833 100,123.4\11 n.181, ,100 1.022,2'18 

'I==I------I-~~

.P('ndin~ at cud of y..ar: 

tn handsaf lechnk':ll ntl " Isors _••••••• 1 1.770 llO:l'~11'2011 .1.7211,03611.382.84.5 [nhnndsofl.hcdl\·isioucounS/)I ••. __ . __ 2.483 62.3f!7.313 2.6&'.123 1,36.~.676

·r"I;.1.. .. .. __ __ _ _ 165.008.5141 7.·117.159 2.751,521 

1 includes llnlOunt of o\"t·rus~ssml'\Dt:; ~t9U'd lu :-.l.H1uLOry notioo, and. in ndd1t.ion. aUlount of ovcrasseS$­ JliNILs fmmd h!lo' f1}\'€InlW ll/Z:ents in c<'rtain ))~~()CilltC'd case::; not ~ltt)\\'JI iu stotutory noli(!C. For estate ta~

ca~cs oP.t amouDts aro \ls.,(} nftN deduct!n!! nddit!onul StnH, tux ('redils nllow"I-,lo H susblantluted. • Includes IS docketed cascs scUled pursufmt ta al1el's in c()ruprol.lllsc, 

(E) Rl<:SUL'J'S O}j'l'AINED IN S·1'1PUT,,\TF.D CASES 

Nct del!cicnc)' atlll IlOnlllty• . .. _ . 36.5

----------1----1--­

Stipu]atians 11'.'r.(,,"r_a~e filed sustained 

ifriiiEE~~:'::;~:;;;;~:~:::;~:;~;~;:;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;~: $2$. ~ii ~i I-~' _:~.~~ 27. 8.19. 179 

NOTF:.-Tb,· abo,-e l1/:urc, ~re complied an the basis 01 collsid('rln~ that n C8l'C r~lcrred to tl!nl:Hatr is still ""ndi"•• unless nnd unlil it is clos<'d by na IlNitlon lx'iliK tiled with ~he lloard, b,' agreewl'JIt or s~ipl1!('tian,

by dlsml"""l or dofunlt, ar by ~r!nl u"forr' the Daard all tb,' !ll('rits. 

TAI1LtJ !)4.-Anal!l.~i" of 1L'ork on comp"omisl<, extension of time, ond final closing 

(JgrCCTllf'1l1 C(/~("', ji8col year It)41 

Flnnl E,L~_nstOIl Compra· cloo.ing Cases mlS('. of timo C>l003 agreement OilS"., ca.sc.s 

- -- I I I 1 1;0· ~~)~j~~~ll~~~~)I:l!~'~.::.~~::=-:::~:::::::::~~:::::::::::::::::::::: 1.~
 187 [(17


Total to be dis\Coasc-<l of.. _ _................ 1.842
 185 bf)';

~C~J'l"d. ~.,.nntcd. ar 611Prowd ._. _""•••_." .•••••••. .... ro·1 23 463 

163 2b

~:~:~\~~~E::=::::::::~::::::=::::::::::::::::::::::::::::::::~_ r~ 1__ 

'rotal disposed ot -----···-···--······--- _.1 1.197 ~I--------~ On hund June SO, IP4L _.•••..••.••••••••••.•••••....... _....... d45
 2 7lI 
178 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

OFFICE OF CHIEF COUNSEL 

TABLE 95.-Cases appealed to the United States Board of Tax Appeals, including 

those appealed from Board decisions to appellate courts, for fiscal year 1941 

APPEALS DIVISION-WASHINGTON OFFICE 

Pending beginning of fiscal year I 808 

Filed-new cases 29 

Received from field for appeal to Circuit Courts of Appeals 553 

1, 390 

Closed: 

By decision on merits 464 

By agreed settlement 11 

Total closed 475 

Transferred to field-remanded for further hearing 12 

Total 487 

Pending end of fiscal year 903 

I See footnote to table 96. 

TABLE 96.-Number, and amounts, of cases shown in table 95 for the fiscal year 1941 

only, by class of tax and amounts involved 

Pending Iuly 1, 1940 

Filed, reopened, and 

received from field, 

fiscal year 1991 

Closed and transferrod to field, fixcal year 1941 

Pending June 30, 

1941 

Class of tax 

Num- Amount in Amount in Num- Amount in Nun- Amount in 

ber dispute 

S 

dispute ber dispute ber dispute 

Income 695 $62, 194,909 $23, 205, 376 $22, 039, 681 

F*8 

$57, 360,624 

Estate 164 1 18, 637, 256 1, 214, 248 4, 363, 452 15, 288,052 

Gift 49 926,860 1, 067,014 1, 136, 887 836,977 

Total 808 81, 759,015 582 25,486,638 487 33, 760, 000 903 73, 485, 653 

One case, Involving $5,344,080, includ d in 1940 final inventory. Case included again in August 1940 

monthly report. Duplication, therefore, eliminated from opening inventory for fiscal year1941. 

TABLE 97.-Circuit and Supreme Court cases' pending June 30, 1941 

Class of tax 

Pending July 1, 1940 

New appeals to Cifcuit Courts of Appeals and reopened 

Closed during fiscal 

year 1941 

Pending June 30, 

1941 

Numbar Amount in 

dispute 

Number 

Amount in 

dispute 

Numbar Amount in 

dispute 

Number Amount in 

dispute 

Income 

Estate 

Gift 

Total 

iS% 

$18, 889, 620 

8, 975, 601 

727,223 

470 

34 

35 

$23, 085, 285 

9, 821, 715 

1,063, 621 

390 

33 

14 

$12, 037, 211 

4, 451,158- 

1,090, 733 

621 

41 

69 

$29, 917, 694 

14, 346,160 

710,111 

619 28, 572, 444 539 33, 970,621 437 17, 569, 100 721 44, 973,965 

REPORT OF COMMISSIONER OF INTERNAL' REVENUE 179 

TABLE 98.-Statue of cases pending before United States Board of Tax Appeals 

June 80, 1941 

Unanswered 26 

On reserve calendar 59 

Inactive 35 

In process of preparation: 

On Washington calendar 1 

On field calendar 1 

Set for trial: On Washington calendar 1 

Tried by Board of Tax Appeals: 

Awaiting decision 14 

Awaiting expiration of appeal period 44 

In process of closing 1 

Total 182 

TABLE 99.-Progress of cases in appellate courts on appeals from decisions of the 

United States Board of Tax Appeals for the fiscal year ended June 30, 1941 

Cases 

In 

circuit 

courts 

In 

Supreme 

Court 

Cases 

4tie 

In 

Supreme 

Court 

Pending beginning of fiscal year: Closed during fiscal year: 

Appealed by Commissioner 181 11 Favorable to Commissioner_ 230 

Appealed by taxpayers 398 9 Favorable to taxpayers 110 

Appealed by both 20 Modified . 55 

Total 599 20 Total 395 41 

Appealed during fiscal year: Pending end of fiscal year: Cat. 

By Commissioner 168 16 Appealed by Commissioner. 

By taxpayers 355 21 Appealed by taxpayers 

By both 15 Appealed by both 

Total 538 37 Total 705 16 

TABLE 100.-Results obtained in cases closed before the United States Board of Tax 

Appeals during the fiscal year 1941 

Character of closing Number 

of cases 

Amount in 

dispute 

Amount 

won 

Percentage 

of recovery 

Decision on merits 469 $17, 731, 987 $9, 289, 234 52.38 

Agreed settlement 11 15, 536, 501 8, 854,688 56.99 

Total 475 33, 268, 488 18,143, 922 64.63 

TABLE 101.-Disposition of cases closed by United States Board of Tax Appeals 

during the fiscal year 1941 

Number Character of closing 

Amount in dispute Amount approved 

Percentage of 

recovery Deficiency Ovraergistiy- Deficiency Ovmentr 

Net result 

Decision on merits 

Agreed settlement 

Total 

464 

11 

$17, 361,090 

7, 767, 004 

WO, 897 

7, 769, 497 

$9,003 350 

1, 158, 157 

$86, 013 

72, 966 

$9, 289, 234 

8, 859, 688 

52.38 

56.99 

475 25,128, 094 8, 140, 394 10, 162,507 156,979 18, 143, 922 54.53 
180 REPORT OF COMMISSIONER. OF INTERNAL REVENUE 

FIELD OFFICES 

TABLE 102.-Number, and amounts, of cases pending in field divisions, by class of 

tax and amounts involved 

Class of tax 

Pending June 30, 

1940 

Filed and reopened, 

fiscal year 1941 

Closed, fiscal year 

1941 

Pending June 30, 

1941 

Number 

Amount in 

dispute 

Number Amount In 

dispute 

Number Amount in 

dispute 

Number Amount in 

dispute 

Income 

Estate 

Gift 

Total 

4 §g§ 

$147, 315,998 

21, 724,428 

13, 791, 207 

4,198 

285 

190 

$112, 776,228 

38. 100,4843 

694,959 

4, 117 

289 

218 

$92, 717, 823 

15, 998.. 090 

10,152, 220 

4,961 

298 

178 

$167,374, 403 

43, 828,82A 

4,333,946 

5, 388 182,831, 633 4,873 151, 571,673 4,624 118,866, 133 5,437 215, 537,173 

TABLE 103.-Disposition of cases by United States Board of Tax Appeals during 

fiscal year 1941 

Character of closing ber of 

Amount in dispute Amount approved 

Num- Percentcases Deficiency Over

men

paty- recovery Deficiency °TuerP

meat Net result age of 

Default 239 $874,616 $61,153 $871,520 $931,673 99.6 

Decision on merits 1,313 27. 550, 829 4, 052, 315 12,693,969 $507,738 16, 238, 548 51.4 

Agreed settlement 3,072 79, 220, 575 7,106,646 28,794,681 268,491 35,632.836 41.3 

Total 4.624 107,646, 019 11, 220,114 42, 359,170 778, 227 52,883, 057 44.4 

PROCESSING TAX SECTION 

TABLE 104.-Cases appealed to United States Processing Tax Board of Review, including those appealed to appellate courts, fiscal years 1938-1941 

1938 1939 1940 1941 

Pending beginning of fiscal year 4 52 83 93 

Filed during year 59 107 120 103 

Total 58 159 203 196 

Closed: 

I em X 

By dismissal 6 76 89 

By agreed settlement 9 

By decision on merits 12 

Total 6 78 110 93 

TABLE 105.-Number, and amounts, of cases shown in table 104 for the fiscal year 

1941 only, by class of tax and amounts involved 

Class of tax 

Pending June 30, Filed during fiscal Closed, fiscal year Pending lime 30, 

1940 year 1941 1991 1941 

zz 

Amount in Num- Amount in Num- Amount In NUM- Amount In 

dispute ber dispute ber dispute ber dispute 

Processing 93 $7, 897, 221 103 $22, 762, 816 93 $14, 754, 337 103 $15, 905, 700 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 181 

TABLE 106.-Status of cases pending before United States Processing Tax Board of Review June 30, 1941 

"Unanswered Number 

 Set for trial: 

On Washington calendar 6 On field calendar 21 Submitted to Board of Review: 

Awaiting decision 

Awaiting expiration of appeal period 

'Circuit Court of Appeals: 

Awaiting decision 8 Awaiting expiration of appeal period 7 in process of closing 3 

Total 103 

'TABLE 107.-Results obtained in cases closed before the United States Processing Tax 

Board of Review during fiscal year 1941 

Character of closing Number Amount of claims re- of claims 

of eases claims in covered recovered dispute by tax- by taxAmount of Percentage 

payers payers 

Dismissals Agreed settlement 61 $363,723 

Decision on merits 0.00 24 2, 563, 813 363, 516 .14 

Total 93 144754,337 371,916 .03 

8 11,826,801 $8,400 .00 

'TABLE 10&-Civil cases received and disposed of by the Processing Tax Section, Appeals Division, and number decided by courts during the fiscal year 1941 

Not in District CiLcui„t, Court of Supreme 

appeals suit courts 'mu' ''' -1 Claims Court Total 

Cases pending July 1, 1940 447 2 13 4 116 Cassa received during fiscal year 34 159 5 35 233 

Total 

Cases closed during fiscal year 34 256 7 48 4 349 5 78 1 15 4 103 

Cases pending June 30, 1941 29 178 6 33 246 

. Cases decidedFor Government 

Against Government 4 2 2 4 12 3 1 4 

Total 7 2 3 4 16 

'TABLE 109.-Interpretative, corporate reorganizat 'on, and bankruptcy and receivership cases disposed of by Processing Tax Section, Appeals Division, dur fig fiscal 

year 1941 

Interpre- Corporate Bankruptcy 

tative reoraanua- and reach,- 

Lion ership 

Cases pending July 1, 1940 11 11 33 Cases received during fiscal year 37 1 29 

Total 

Cases disposed of during fiscal year 48 12 62 

40 7 27 

Cases pending June 30, 1941 8 5 35 

26 

23 
3, 660 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 183 

TABLE 113.-Results obtained in lien eases closed during the fiscal year 1941 

182 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE I10.-Review cases received and disposed of by the Processing Tax Section, 

Appeals Division, for the fiscal year 1941 

Cases Claims Amount involved 

On hand beginning of fiscal year 47 137 $27, 810, 213.04 

Received during the year 220 469 180, 194, 633.27 

Total 267 606 208, 004, 846.31 

Disposed of during the year 199 429 108, 483, 062 12 

On lumid end of fiscal year 68 177 99, 521,783.19 

CIVIL DIVISION 

TABLE 111.-Cases received and disposed of during the fiscal year 1941 I 

Pending July 1, 1940: Number 

In court (exclusive of lien cases) 2, 724 

Not pending in court 234 

Cases in court involving liens 657 

Cases not in court involving liens 45 

Total 3, 660 

Received during the year: 

Suits by taxpayers 674 

Suits involving liens 971 

Cases for suit by the United States 244 

Liens cases not in court 337 

Total 2, 226 

Total to be disposed of 5, 886 

Closed during the year: 

Cases (exclusive of lien cases) 

Cases involving liens 1,193 

 1, 290 

2, 483 

Pending June 30, 1941 

Pending July 1, 1940 

Received during fiscal year 27, 303, 091. 65 

 $204, 664, 199. 21 

Total 231, 967, 290. 86 

Closed during fiscal year 47, 506, 236. 06 

Pending June 30, 1941 184, 461, 054. 80 

I Excludes bankruptcy, receivership, insolvency, compromise, and liquor cases. 

TABLE 112.-Results obtained in cases closed during the fiscal year 1941 I 

Number 

of cases 

Amount 

claimed 

Recovered from 

taxpayers 

Amount refunded 

Suits instituted by taxpayers 

Suits and claims by the United States 

Injunctions-Social security taxes 

Total 

1, 012 

276 

2 

10,301, 791.57 

$36, 843, 219.39 

10, 691.53 

$1,089,309.13 

$7, 330, 733.12 

1, 290 97, 155,702.99 1,089, 309. 13 7, 330, 733. 12 

! Excludes bankruptcy, receivership, insolvency, compromise, lien, and liquor cases. 

Amount 

collected 

Lien cases pending in court 

Lien cases not pending in court 

Total 

TABLE 114.-Civil cases pending at the beginning and end of the fiscal year 1941 

Pending 

June 30, 

1941 

For suit by the United States 

Pending in district courts 

Involving liens 

Pending in circuit courts of appeal 

Pending in Court of Claims 

Pending in Supreme Court 

Pending payment of judgment claims 

State courts and mitscellaneous 

Total 

Excludes bankruptcy, receivership, insolvency, compromise, and liquor eases 

TABLE 115.-The number of Civil Division cases tried by the Department of Justice 

and the number decided by the courts during the fiscal year 1941 

Courts Cases tried 

Cases decided 

For the 

Government 

Against 

Government 

Partly for 

and partly 

against 

Government 

Total 

District courts 

Circuit courts of appeal 

Court of Claims 

Supreme Court 

Total 

179 

63 

18 

10 

217 

141 

33 

9 

107 

38 

16 

3 

11 

2 

0 

0 

514 

244 

67 

22 

270 400 169 13 847 

COMPROMISE SECTION 

TABLE 116.-Number of cases received and disposed of during the fiscal year ending 

June 30, 1941 

Pending July 1, 1940 2, 933 

Received during year 2, 127 

Closed or in process of closing 

Total 

2, 023 

5, 060 

Pending, June 30, 1941 3, 037 

Total 

Number 

of eases 

$105, 496.17 

112, 350.00 

217,846.17 

187 

1,536 

817 

74 

413 

4 

65 

7 

3, 903 
184 REPORT OF COMMISSIONER OF INTERNAL REVENUE. 185 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 117.—Classification and tax liability involved in cases pending June 30, 

1 

INTERPRETATIVE DIVISION 

TABLE 118.—Number of cases received and disposed of during the fiscal year 1941 

Cases on hand July 1, 1940 298 

Cases received during the year 2, 367 

Total 2, 665 

Cases disposed of during the year 2, 406 

Cases on hand June 30, 1941 259 

REVIEW DIVISION 

BLE 119.—Number of cases received and disposed of during the fiscal year 1941 

Estate and 

other miscellaneous taxes 

Income ha Total 

On hand July I, 1940 

Received to July 1, 1941 

Total 

Disposed of during year 

On hand July 1, 1941 

Amounts involved: 

Claimed by taxpayer 

Approved by Review Division 

21 

87 

113 

460 

134 

547 

108 

84 

573 

504 

581 

588 

24 69 93 

$5, 140,908. 40 

3, 310, 311.44 

$57,970,081.76 

38, 560, 737.62 

$83, 110,990. 113 

39,871,049. 06 

TABLE 120.—Public decisions, promulgated under Treasury Decisions 4264 and 

588, during the fiscal year 1941 

Month Decisions 

'numbered 

Income tax cases Estate tax cases Gift tax cases 

Numbar 

Amount approved 

Number 

Amount approved 

Number 

Amount ap 

proved 

July 1940 

August 1940 

September 1940 

October 1940 

November 1940 

December 1940 

January 1941 

February 1941 

March 1041 

Apra 1941 

May 1941 

June 1941 

Total for fiscal year 

Abatements 

Credits 

Refunds 

Unadjusted 

6545-6575 

6576-6600 

6601-6624 

6625-6634 

8635-61360 

6681-6656 

6687-6711 

6712-6742 

6743-6784 

8785-8813 

6814-6845 

6846-8878 

NnW°A8AMINS 

$2, 758,257.87 

1,515, 229.34 

2, 142, 489. 25 

582,588. 42 

2,956, 137. 47 

1,018,951. 24 

1,223,050.00 

1,848,807. 23 

2,676,830. 74 

10,088,395.43 

5.796,09. 22 

2, 213, 

8 

 108. 40 

$147, 447.55 

82, 181. 59 

64,472.49 

23, 223.38 

232, 024.99 

185, 144.82 

72,857. 88 

. 151, 642. 37 

586, 227.07 

385, 138. 56 

101,948. 37 

109, 087.07 

866,329. 47 

1, 790, 771. 49 

83, 386.83 

30, 691.00 

53, 040. 00 

27, 340. 12 

295 34, 818,724.61 

16,576,011. 72 

6, 042, 863.83 

12, 066,975. 33 

131,873. 73 

30 2,101, 400. 94 

250, 654.08 

1,850, 746.88 

7 2,050,953. 91 

1, 818, 111. 61 

232,847. 30 

Non.—The difference between the total o $39,871,049.06 approved in all eases revkewed and the shove 

total of 838,971.089.46, as shown in the public decisions, is attributable in part to delayed application of 

credits, cases in which no public decisions are required, ease pending before the Jo'nt Committee during 

the 30-day period not yet expired on June 30, and to uncompleted final scheduling of allowances. 

MISCELLANEOUS STATISTICS 

TABLE 121.—Moneys paid to collectors as proceeds of In rem actions, judgments 

recovered in civil suits, fines and penalties imposed in criminal actions, and costs, 

• as reported by clerks of United States courts (Form 158), year ended June 30, 

1941 

Internal-revenue collection 

districts ' 

In rem 

eases 

Judgments 

Interest Costs Total Civil suits 

amts .ts on ' 

bonds, etc. 

Fines and 

Peaaleles 

Alabama $250.00 $13, 720.00 $154.81 $14,124. 81 

Arizona 2,100.00 2,100.00 

Arkansas 

First California 2, 580.00 354.81 2,934.81 

Sixth California 21, 441. 50 76.64 21, 518.14 

Colorado 300.00 300.00 

Connecticut 5, 315.00 147.80 5, 482.80 

Delaware 1,000.00 25.00 1,025.00 

Florida 1, 950.01 228.24 2, 178. 24 

Georgia 3, 677. 00 377.90 4,054.90 

Hawaii 4, 971.00 4, 971.00 

Idaho 

First Illinois 171.55 5, 503.17 368.32 8,041.04 

Eighth Illinois 16,377.00 212.50 16, 589. 50 

Indiana 7,837.12 373.46 3, 210. 68 

Iowa 770.00 770.43 1,540.43 

Kansas 200.00 394.57 594.57 

Kentucky 13,152.00 348.09 13, 408. 09 

Louisiana 8, 800.00 3, 308.37 12, 188.37 

Maine 500.00 500.00 

Maryland 10.585.00 507.90 11,072. 90 

Massachusetts 1,482.09 182.12 1,814.21' 

Michigan 4,897.00 4,897.00 

Minnesota 3,672.00 60.00 3,782.00 

Mississippi 1,035.00 178.08 1,211.08 

First Missoun 25, 895.00 64.75 25, 959.75 

Sixth Missouri 4,800.00 133.00 5,023.00 

Montana 7,646.00 7,846.00 

Nebraska 3,501.00 45.51 3, M5. 51 

Nevada 101.01 100.00 

New Hampshire 2, 915.00 2, 915.00 

First New Jersey 3, 360.00 183.50 4,043. 50 

Fifth New Jersey 1,595.00 110.20 I, 701.20 

New Mexico $3,02892 67.70 3,096. 82 

First New York 

Second New York 3, 253.06 $1. 28 108.37 3,382. 70 

Third New York 30.00 8,452. 50 405.29 8, 887.79 

Fourteenth New York 60.55 6, 566.00 146. 92 8, 773.47 

Twenty-first New York 2, 879.90 1, 550.35 6,430. 25 

Twenty-eighth New York 9, 277.00 211.513 9,488 80 

North Carolina 1, 656.00 19, 467.70 376.26 21,499. 98 

North Dakota 

First Ohio 1, 800.00 145.00 1, 945.00 

Tenth Ohio 600.00 21.10 621.10 

Eleventh Ohio 131.01 131.00 

Eighteenth Ohio 4, 527. 20 714.69 5,241.89 

Oklahoma 16, 718.00 1,011. 77 17, 729.77 

Oregon 75.00 75.00 

First Pennsylvania 11, 561.00 60.14 11, 621.14 

Twelfth Pennsylvania 525.00 144.29 869.29 

Twenty-third PennOlvania 2,144. 50 3,800.40 11,944.90 

Rhode Island 1,025.00 1,026.00 

South Carolina 1,100.00 286.75 1, 386. 75 

South Dakota 

Tennessee 190.00 510. 74 4, 793. 68 51.07 630.81 6, 176. 30 

First Texas 77. 73 17, 174.00 262.83 17,514.56 

Second Texas 3,245.00 3, 245.01 

Utah 2.00 2.00 

Vermont 75.00 75.00 

Virginia 3, 889.02 674.48 4, 563. 50 

Washington 1,274.00 95.92 1,389.92 

West Virginia 3,350.40 24.00 3,374.40 

Wisconsin 3, 588. 00 9.23 8,597.23 

Wyoming 

Total 2,435.83 6,419. 56 309,225. 28 52.35 17,928. 75 338,059.77 

423348-41-18 

Pending In process of dosing 

Class 

Number Liability Number Liability , 

Decedent estates 

Insolvent banks 

Miscellaneous cases 

Cash offers in compromise 

Installment offers in compromise 

Total 

$20,092,078 

108, 321 

3, 055, 616 

302,051 

1,458, 350 

25, 014,410 

1,652 

27 

1,369 

57 

32 

3,037 

76 

25 

101 2,023,362 

$851,889 

1,171,473 
__ _ _ 

C 

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rermont rirginia Vashington Vest Virginia Visconain 

Total 

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N 

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A 

0 

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A 

N 

N 

N 

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1211 

188 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIONE
190 REPORT OF. COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONE

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District 

Boston 

NewYork 

•

Philadelphia Newark Baltimore 

Atlanta Louisville Detroit Chicago New Orleans Kansas City St.Paul 

Denver SanFrancisco 

Seattle 

Total 

D.DISBURSEMENTS FOR DISTRICTS RVISORS' OFF 
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Appropriation 

Collectingthe internal revenue,1941: Collectors 

Agents Supervisors Technical Staff, field force Chief Counsel, field force 

Departmental serviceand field forcesoperating from Washington 

Subtotal 

Salariesand administrativeexpenses forrefundingprocessing 

and related taxesand administering Title III, Revenue Actsof 

1938, 1941: Collectors 

Departmental serviceand field forcesoperating from Washington 

Subtotal 

Salariesand expenses, BasicPermit and Trade Practice Division, Bureauof Internal Revenue, 1941: Supervisors Chief Counsel, field force 

Departmental serviceand field forcesoperatingfrom Washington 

Subtotal 

Working fund, Treasury, Internal Revenue(Office for EmergencyManagement,War),1940-1942 

Total 

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REPORT OF COMMISSIONER OF INTERNAL REVENUE 195 

TABLE 123.—Summary of internal revenue stamps issued to collectors of internal 

revenue and the Postmaster General during the fiscal years 1940 and 1941 

Kind 

Quantity Value 

1990 . 1941 1990 1941 

Distilled spirits and wines: 

Brandy 38,400 58, BOO $3,889, 320.00 $8, 997, 037.50 

Other domestic distilled spirits 2,140,830 2,909,900 231,085, 102. 50 341, 172,030.00 

Certificate of tax-payment, distilled spirits, for shipment in 

tank can 2, 250 &POO 

(1 ) (I) 

Export (secs. 2878 and 2885, 

I. R. C.) 12, 800 2,400 1, 280.00 220.00 

Bottled-in-bond, export (blue 

strips) 1, 113, 820 318,128 9, 011.40 2,806.28 

Bottled-in-bond,domestic (green 

strips) 128, 610, 000 106, 295,000 , 1,268,100.00 1,004,412.50 

Container or bottle stamps (red 

Restrips) 

ctified, class B 5 

1, 070, 689,700 

216, 000 

1,067, 747, 400 

13,800 

10,479,909. 50 

2215,820.00 

10,285,974.00 

196.686.00 

Rectified, Puerto Rico 2 21, 600, 000 2, 757, 950 

+ 368, 500.00 763, 338.00 

Rectified, class A 20,000 11,500 

Industrial alcohol transfer 60,800 54,000 

Alcohol warehousing 164,300 97,200 

(3) 

Wholesale liquor dealer's packages 800 9,900 Cs) (2) 

Win 17,961,584 41,322,936 7, 686,050.97 17,206, 298.25 

Fermented malt liquor 53,875, 500 53,045,100 263,948, 125.00 324,333,750.00 

Tobacco: 

Manufactured tobacco 2,469, 379, 540 2, 458,985,330 55,336,074.60 55, 049, 719.29 

Snuff 392, 4u, 989 421,002,811 8,984,833.04 7,402,237. 88 

Tinfoil wrappers 1,393,048 1,376,400 15,657. 17 15, 427.12 

Cigars, large 183, 738,400 174,928,860 19, 248, 752. 35 13,748,891.30 

Cigars, small 14, 144,000 15,908,300 108, 756.45 117,249.45 

Cigarettes, class A 8,918,083, 400 9,916,680, 700 536, 677, 877. 50 613,692, 179.92 

Cigarettes, class B 422,600 122,500 80, 310. 80 13,852. 80 

Cigarette tubes 2, 102, 100 1,595,200 30,541.00 13, 902. 00 

Oleomargarine: 

Domestic, colored 17,975 19, 925 28,690.00 90, 315.00 

Domestic, uncolored 16,416,850 17,956,450 793, 855. 50 879, 368.12 

Process or renovated butter 163, 000 261,000 4, 930.00 8, 455.00 

Mixed flour 581, 000 629, 500 6, 470.00 7, 810.00 

Playing card 92,308, 370 54, 508,658 9,230, 837.00 5,985,920. 78 

Documentary 11,344, 828 23,340, 792 17, 306, 267.00 27,606, 537.00 

Stock transfer 17,146, 280 10,313,618 18,098, 391.00 10,099, 391 00 

Silver transfer 2, 888 50,600 65, 650.00 93, 054.00 

Narcotic 3,525,900 5, 295, 075 195, 458.00 260,973. 25 

Order forms for opium 1,090,000 1,072,500 10, 900.00 10,725. 00 

Marihuana 100 200 100.00 200.00 

Order forms for marihuana 190 a80 

National Firearms Act (sec. 2720, 

I. R. C.): • Machine guns, silencers, etc 20 9, 000.00 

Certain short 2-barrel guns 450 50 • 950.00 50.00 

Special or occupational, stamps 959,040 049,060 15,054,860.00 16, 098,199.00 

Total 13, 351, 512, 052 13,878,588, 593 1,188, 107, 281.48 1,455, 156, 314.24 

Value inserted when purchased. 

3These items were consolidated in Annual Report for 1940. 

3 Rave no money value. 

TABLE 124.— Cost of printing and b nding for the Internal Revenue Bureau and 

Service, fiscal years 1940 and 1941 

Class of work 

1940 1941 

Quantity Cost Quantity Cost 

Publications, regulations, decisions, etc 1,814,000 $119,870.28 2,150,200 $106, 813.58 

Blank forms 251,604,000 871, 137. 78 272,176,000 520. 132.87 

Letterheads 13,763,000 18,484. 41 17,844,000 25,506. 15 

Miscellaneous: Binding, memorandum sheets, 

analysis paper, tabulating cards, etc 15, 489.29 21,226,325 31,807.40 

Total 267, 181,000 522,962. 66 313, 398,525 684,360.00 

0