I

Reference

Do Not Remove

COMMISSIONER OF INTERNAL REVENUE

Publication No. 55

ANNUAL REPORT
i

MISSION OF THE SERVICE

The mission of the Service is to encourage an d

achieve the highest possible degree of voluntary

compliance with the tax laws and regulations and

to maintain the highest degree of public confidence

in the integrity and efficiency of the Service. This

includes communicating the requirements of the

law to the public, determining the extent of compliance and causes of noncompliance, and doing

all things needful to a proper enforcement of the

law .

Notes : All yearly data are on a fiscal year basis, unless otherwise specified.

For example, data headed "1964" pertain to the fiscal year ended June 30,

1964, and "July P' inventory items under this heading reflect inventories as of

July 1, 1963.

In many tables and charts, figures have been rounded and may not add to

the totals which are based on unrounded figures.

1964 annual report

COMMISSIONER OF INTERNAL REVENU E

I

for the fiscal year ended June 30, 1 964

INTERNAL REVENUE SERVICE

UNITED STATES TREASURY DEPARTMENT

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C ., 20402 - Price 70 cents (paper cover)
-ON Twis SITE, ON MAY ),

',PRES1DENT JOHN F . KENNEDY S!?Ok~`,

_r o 0 INTERNAL REVENUE OFFICIALS-AN D

Plaque outside the room in the Internal Revenue SI,. Building he . P, .,il..t Kennedy spoke .

BECAME THE FIRST CHIEF EXECUTIVE""

~TO .VISIT'THIS BUILDING ,

ON THAT OCCASION HE SAID~-l HOPC~

YOU WILL IMPRESS UPON THE-AGENTS

OFTHE INTERNAL REVENUE SERVIC E

HOW MUCH WE ARE DEPENDENT UPO N

. 'THEM :ON THEIR COURTESY .ON THEIR ~

EFFICIENCY,ON THEIR INTEGRITY,O.N . :

THEIR FAIRNESS : '

. IN HIS MEMORY.AND WITH THE RESOLVE

TO FULFILLHIS EXPECTATIONS THIS

PLAQUE IS RESPECTFULLY DEDICATED .

MORTIMER M .CAPLIN

MAY I~ 196 4

President Johnson addressing Secretary Dillon, Commissioner Coplin, and Service Officials

at the Whit. Mo ... .

Present at the Plaque dedication ceremony were, left to right : Harold T. Swartz, Assistant Commissioner, Technical ; Donald W.

Bacon, Assistant Commissioner, Compliance ; Donald C . Dawkins, Executive Assistant, Administration ; Edwin M . Perkins, Assistant

to Commissioner ; Sheldon S . Cohen, Chief Counsel ; Albert W. Brisbin, Assistant to Deputv Commissioner; Stanley M. Cowan,

Assistant to Deputy Commissioner ; Robert L . Jack, Assistant Commissioner, Data Processing ; William H. Smith, Assistant Commissioner, Planning and Research ; Edward F . Preston, Assistant Commissioner, Administration; Vernon D . Acres, Assistant

Commissioner, Inspection; Bertrand M . Harding, Deputy Commissioner; and Mortimer M . Coplin, Commissioner.
Summary and Transmittal

Honorable DOUGLAS DILLON ,

Secretary of the Treasury, WASHINGTON, D .C. 20224

Washington, D .C. October 23, 1964.

DEAR MR. SECRETARY :

Attached is the annual report of the Internal Revenue Service for fiscal year 1964 . As you are well

aware~ although I have the honor of submitting this report, the achievements recorded in it were accomplished under the able leadership of former Commissioner Mortimer M. Caplin. The magnitude of

some of these achievements is reflected by the following highlights of our operations.

Gross Internal Revenue receipts rose to a record total of $112 .3 billion. There was an increase in

revenue from all major sources with the exception of the tax on cigarettes . Refunds and returns filed

also reached record heights.

'Me continuing vigor of enforcement efforts and the effectiveness of the quality audit program are

evidenced by the $2 .55 billion in additional taxes and penalties recommended . This is the greatest

amount ever recommended in one year even though fewer returns were examined than in 1963 .

Good progress continues toward the conversion of Iraptnal Revenue operations to an automatic data

processing system . New service centers were opened- in Austin, Texas and Cincinnati, Ohio . On

January 1, 1964, existing service centers at Kansas City, Missouri ; Lawrence, Massadhusetts ; and Ogden,

Utah, began converting to the ADP Master File Systern preparatory to processing business tax returns

effective January 1, 1965 . The Service Center at Chamblee, Georgia, is in its third year of processing

business returns, and in its second year of processing individual returns . The Philadelphia Service Center

is in its second year on business returns and will begin processing individual returns on January 1, 1965 .

So in fiscal year 1965, all seven service centers will become a part of a single nationwide system . Partial

conversion to ADP is already enabling the Service to perform several of its massive document-processing

tasks much more effectively, thereby justifying our reliance on this remarkable new tool .

In line with the President's interest in economy and frugality in Government, the Service continued

its vigorous efforts to reduce costs and achieve optimum utilization of resources . Total savings realized

from all efforts exceeded $15.8 million, the major portion of which resulted from improvements in the

management of operations which are expected to produce annually recurring benefits of approximately

$9.8 million .

I am confident that accomplishments in 1964 are indicative of what can and will be done in 1965 .

BERTRAND M. HARDING,

Acting Commissioner of Internal Revenue.

iv

Table of Contents

LETTER or TRANSMITTAL . . . . . . . .

COMMISSIONERS OF INTERNAL REVENUE . .

PRINCIPAL OFFICERS OF THE INTERNA L

REVENUE SERVICE . . . . . . . . . .

CHART OF INTERNAL REVENUE SERVICE

ORGANIZATION . . . . . . . . . . . .

MAP OF INTERNAL REVENUE REGIONS AND

DISTRICTS . . . . . . . . . . . . . .

REPORT ON OPERATION S

CHAPTER 1 -INTERPRETATION AND COMMUNICATION OF TAX LAW To TAXPAYERS .

General . . . . . . . . . . . . . .

Taxpayer publications program . . .

Public information program . . . . .

Teaching taxes program . . . . . .

Taxpayer assistance program . . . .

Tax return forms program . . . . . .

Regulations program . . . . . . . .

Tax rulings and determination letters .

CHAPTER 2-INTFRNAL REVENUE COLLECTIONS AND REFUNDS . . . . . . . . .

General . . . . . . . . . . . . . . .

Income taxes . . . . . . . . . . .

Income taxes-corporations . . . . .

Income taxes-individuals . . . . . .

Employment taxes . . . . . . . . .

Excise taxes . . . . . . . . . . . .

Administrative budget receipts . . . . .

Internal revenue refunds . . . . . .

CHAPTER 3-RFCEIPT AND PROCESSING OF

RETURNS AND RELATED DOCUMENTS . . .

Tax returns filed . . . . . . . . . .

Information returns . . . . . . . . .

Automatic data processing . . . . . .

Service center functions . . . . . . .

Carryback allowances . . . . . . . .

CHAPTER 4-ENFORCEMENT ACTIVITIE . .

General . . . . . . . . . . . . . . .

Mathematical Verification of individual

income tax returns . . . . . . . .

National identity file . . . . . . . .

Overpayments offset prior to refund . .

Voluntary disclosures . . . . . . . .

Examination program . . . . . . .

Appeals . . . . . . . . . . . . . .

Overassessments reported to joint committee . . . . . . . . . . . . . .

Delinquent returns and delinquency

investigations . . . . . . . . . .

Tax fraud investigations . . . . . . .

Cases involving criminal prosecution .

Summary of additional taxes from direc t

enforcement . . . . . . . . . . .

Pap

iV CHAPTER 4-Continued

Pap

vii Taxpayer delinquent accounts . . . . 22

Workflow in the Service and courts . . 23

viii Offers in compromise . . . . . . . . 24

Collection litigation legal services . . . 24

xi Federal-State cooperation . . . . . . 25

Informants' rewards . . . . . . . . 25

xii Alcohol and tobacco tax enforcement . 25

Firearms program . . . . . . . .

. 26

CHAPTER 5-SUPERVISION OF THE ALCOHOL

14

14

15

1 5 is

17

AND TOBACCO INDUSTRIES . . . . . . . 27

General . . . . . . . . . . . . . . 27

Authorization of industry operations . 27

On-prcmises supervision . . . . . . . 27

Inspection of establishments . . . . . 28

Chemical analysis and research . . . . 28

CHAPTER 6-LEGISLATivE ACTIVITIES . . . 29

General . . . . . . . . . . . . . . 29

Legislative program . . . . . . . . 29

Legislative assistance . . . . . . . . 29

Legislation enacted . . . . . . . . . 29

Legislation pending . . . . . . . . . 30

Legislative implementations . . . . . 30

CHAPTER 7-LEGAL ACTIVITIES . . . . . 31 General . . . . . . . . . . . . . 31

Caseload disposal activity . . . . . . 31

Civil litigation . . . . . . . . . . . 31

Taxes in litigation . . . . . . . . . 31

Personnel . . . . . . . . . . . . . 32

Tort claims under the Federal Tort

Claims Act . . . . . . . . . . . 32

CHAPTER B-INTERNATIONAL ACTIVITIES . 33

General . . . . . . . . . . . . . . 33

Foreign tax assistance program . . . . 33

Tax conventions . . . . . . . . . . 33

International operations . . . . . . . 34

CHAPTER 9-PLANNING ACTIVITIES . . . . 36

General . . . . . . . . . . . . . . 36

Short-range operational planning . . . 36

Long-range planning . . . . . . . . 36

Organizational planning . . . . . . 37

Systems development . . . . . . . . 37

Current research program . . . . . . 39

Statistical reporting . . . . . . . . . 39

CHAPTER 10-MANAGEMENT ACTIVITIES . . 44

19 General . . . . . . . . . . . . . . 44

Major management improvements . . 44

19 Reorganizations . . . . . . . . . . 45

20 Personnel . . . . . . . . . . . . . 46

20 Training . . . . . . . . . . . . . 4 8

Internal technical development an d

21 guidance . . . . . . . . . . . . 50

V
TABLE OF CONTENT S

CHAPTER 10-Continue d

Facilities management . . . . . . . .

Fiscal management . . . . . . . . .

Inspection activities . . . . . . . . .

General accounting office reports . . .

Advisory group . . . . . . . . . .

APPENDIX . . . . . . . . . . . . . .

page

50

52

54

56

56

58

CASES RECEIVING APPELLATE CONSIDERATION OR IN LITIGATIO N

STATISTICAL TABLES

COLLECTIONS, REFUNDS, AND RETURNS FILED

Table

1 . Internal revenue collections by sources

and by internal revenue regions, districts, States, and other areas . . . 73

2. Internal revenue collections by sources

and by quarters . . . . . . . . . 81

3 . Internal revenue collections by sources . 82

4 . Internal revenue collections by principal

sources, fiscal years 1940-1964 . . . 84

5 . Internal revenue refunds including

interest . . . . . . . . . . . . . 86

6 . Number of returns filed by internal

revenue regions, districts, States, and

other areas . . . . . . . . . . . 87

7 . Internal revenue tax collected in Puerto

Rico on manufactured products coming into the United States, by objects

of taxation . . . . . . . . . . . 88

ALCOHOL AND TOBACCO TAXES

8. Establishments qualified to engage in

the production, distribution, storage ,

or use ofalcohol and alcoholic liquors . 88

9. Establishments qualified to handle

tobacco materials, or to engage in the

production or exportation of tobacco

products and cigarette papers and

tubes . . . . . . . . . . . . . . 88

10 . Permits relating to distilled spirits under

chapter 51, Internal Revenue Code,

1954 . . . . . . . . . . . . . . 88

11 . Permits for operations relating to alcoholic beverages under the Federal

Alcohol Administration Act . . . . 89

12 . Permits relating to tobacco under

chapter 52, Internal Revenue Code ,

1954 . . . . . . . . . . . . . . 89

13. Label activity under Federal Alcohol

Administration Act . . . . . . . . 89

STAMP TAXES

14. Number of occupational tax stamps

issued, covering fiscal year 1964, or

pf,rtion thereof, by class of tax and by

internal revenue regions, districts

and States . . . . . . . . . . . . 90

Page

APPELLATE DIVISION

Table

15 . Receipts and dispositions of protesn~d

income, profits, estate, and gift tax

cases prior to issuance of statutory

notice ofdcficiency (pre-90-day cases) . 94

16 . Receipts and dipositions of protested

income, profits, estate, and gift tax

cases in which statutory notices of

deficiency were outstanding (90-da y

cases) . . . . . . . . . . . . . . 94

17 . Receipts and dispositions of income,

profits, estate, and gift tax cases

petitioned to the Tax Court (docketed

cases) . . . . . . . . . . . . . . 95

OFFICE OF THE CHIEF COUNSE L

I S. Processing of income, profits, estate, an d

gift tax cases in the Tax Court. . . . 95

19 . Results obtained in income, profits,

estate, and gift tax cases,disposed of in

the Tax Court . . . . . . . . . . 95

20 . Receipt and disposal of Tax Court cases

in courts of appeals and in Supreme

Court . . . . . . . . . . . . .. 96

21 . Receipt and disposal of suits filed by

taxpayers in Federal courts and

actions by the United States for recovery of erroneous refunds . . . . . 96

22 . Decisions of courts of appeals and

Supreme Court in civil tax cases .. 97

23 . Receipt and disposal of collection, injunction, summons, and disclosure

cases . . . . . . . . . . . . . . 97

24. Receipt and disposal of insolvency and

debtor proceedings . . . . . . . . 97

25 . Receipt and disposal of miscellaneous

court cases, lien cases not in court,

noncourt collection litigation cases ,

and appeal cases . . . . . . . . . 97

26 . Caseload report . . . . . . . . . . 97

COST OF ADMINISTRATIO N

27 . Obligations incurred by the Internal

Revenue Service . .

. . . . . .

. 98

28 . Obligations incurred by the Internal

Revenue Service, by activity . . . . 99

29 . Quantity and cost statistics for printing . 100

INDEX . . . . . . . . . . . . . . . . 101

Commissioners of Internal Revenu e

Office of Commissioner of Internal Revenue created by act of Congress, July 1, 7862.

Name

George S. Boutwell . . . . . . . . . . . . . . .

Joseph J . Lewis . . . . . . . . . . . . . . . . . . .

William Orton . . . . . . . . . . . . . . . . . . .

Edward A. Rollins . . . . . . . . . . . . . . . .

Columbus Delano . . . . . . . . . . . . . . . .

Alfred Pleasonton . . . . . . . . . . . . . . . . .

John W . Douglass . . . . . . . . . . . . . . . .

Daniel D. Pratt . . . . . . . . . . . . . . . . . .

Green B . Raum . . . . . . . . . . . . . . . . . .

Walter Evans . . . . . . . . . . . . . . . . . . . .

Joseph S . Miller . . . . . . . . . . . . . . . . . .

John W . Mason . . . . . . . . . . . . . . . . . .

Joseph S . Miller . . . . . . . . . . . . . . . . . .

W. St . John Forman . . . . . . . . . . . . . Nathan B . Scott . . . . . . . . . . . . . . . . . ..

George W. Wilson . . . . . . . . . . . . . . . .

John W. Yerkes . . . . . . . . . . . . . . . . . .

John. G . Capers . . . .. . . . . . . . . . . . . . .

Royal E. Cabell . . . . . . . . . . . . . . . . . .

William H. Osborn . . . . . . . .

.

Daniel C. Roper . . . . . . . . . . . . .. .. .. .. .. ..

William M. Williams . . . . . . . . . . . . . .

David H . Blair . . . . . . . . . . . . . . . . . . .

Robert H . Lucas . . . . . . . . . . . . . . . . .

David Burnet . . . . . . . . . . . . . . . . . . . .

Guy T. Helvering . . . .

.

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

Robert E . Hannegan . . . . . . . . . . . . . .

Joseph D. Nunan, Jr . . . . . . . . . . . . . .

George J . Schoeneman . . . . . . . . . . . .

John B . Dunlap . . . . . . . . . . . . . . . . . .

T. Coleman Andrews . . . . . . . . . . . . .

Russell C. Harrington . . . . . . . . . . . . .

Dana Latham

Mortimer M . Caplin . . . . . . . . . . . . . .

State

Massachusetts . . . . . . . . . . . . . . . . .

Pennsylvania . . . . . . . . . . . . . . . . .

New York . . . . . . . . . . . . . . . . . . . .

New Hampshire . . . . . . . . . . . . . . .

Ohio . . . . . . . . . . . . . . . . . . . . . . . .

New York . . . . . . . . . . . . . . . . . . . .

Pennsylvania . . . . . . . . . . . . . . . . .

Indiana . . . . . . . . . . . . . . . . . . . . . .

Illinois . . . . . . . . . . . . . . . . . . . . . . .

Kentucky . . . . . . . . . . . . . . . . . . . .

West Virginia . . . . . . . . . . . . . . . . .

. . . . . do . . . . . . . . . . . . . . . . . . . . . .

. . . . . do . . . . . . . . . . . . . . . . . . . I . .

Illinois . . . . . . . . . . . . . . . . . . . . . . .

West Virginia . . . . . . . . . . . . . . . . .

Ohio . . . . . . . . . . . . . . . . . . . . . . . .

Kentucky . . . . . . . . . . . . . . . . . . . .

South Carolina . . . . . . . . . . . . . . .

Virginia . . . . . . . . . . . . . . . . . . . . .

North Carolina . . . . . . . . . . . . . . .

South Carolina . . . . . . . . . . . . . . .

Alabama . . . . . . . . . . . . . . . . . . . . .

North Carolina . . . . . . . . . . . . . . .

Kentucky . . . . . . . . . . . . . . . . . . . .

Ohio . . . . . . . . . . . . . . . . . . . . . . . .

Kansas . . . . . . . . . . . . . . . . . . . . . .

Missouri . . . . . . . . . . . . . . . . . . . .

New York . . . . . . . . . . . . . . . . . . . .

Rhode Island . . . . . . . . . . . . . . . . .

Texas . . . . . . . . . . . . . . . . . . . . . . . .

Virginia . . . . . . . . . . . . . . . . . . . . .

Rhode Island . . . . . . . . . . . . . . . . .

California . . . . . . . . . . . . . . . . . . . .

Virginia . . . . . . . . . . . . . . . . . . . . .

In addition, the following were, Acting Commissioners

during periods of time when them was no Commissioner

holding the office : John W. Douglass, of Pennsylvania,

from Nov. 1, 1870, to Jan . 2, 1871 ; Henry C. Rogers, of

Pennsylvania, from May I to May 10, 1883, and from May

I to June 4, 1907 ; John J . Knox, of Minnesota, front May

11 to May 20, 1883 ; Robert Williams, Jr., of Ohio, from

Nov . 28 to Dec. 19, 1900 ; Millard F . West, of Kentucky,

from Apr. 12 to May 26,1921 ; H . F. Mims, of Washington,

From

July 17,1862

Mar. 18,1863

July 1,1865

Nov . 1, 1865

Mar. 11,1869

Jan . 3,1871

Aug. 9,1871

May 15,1875

Aug. 2,1876

May 21,1883

Mar. 20,1885

Mar. 21, 1889

Apr. 19,1893

Nov . 27,1896

Jan . 1,1898

Mar. 1,1899

Dec . 20, 1900

June 5, 1907

Sept . 1,1909

Apr. 28,1913

Sept . 26, 1917

Apr. 1,1920

May 27, 1921

June 1,1929

Aug . 20,1930

June 6, 1933

Oct. 9, 1943

Mar. 1,1944

July 1, 1947

Aug . 1,1951

Fe b . 4,1953

Dec . 5,1955

Nov . 5,1958

Feb. 7,1961

TO

Mar. 4,1863

June 30,1865

Oct. 31, 1865

Mar . 10,1869

Oct . 31, 1870

Aug . 8,1871

May 14,1875

July 31,1876

Apr . 30,1883

Mar. 19,1885

Mar . 20,1889

Apr . 18,1893

Nov. 26,1896

Dec. 31,1897

Feb . 28,1899

Nov . 27,1900

Apr . 30,1907

Aug . 31,1909

Apr . 27,1913

Sept. 25, 1917

Mar . 31,1920

Apr. 11, 1921

May 31,1929

Aug . 15,1930

May 15,1933

Oct . 8, 1943

Jan . 22,1944

June 30,1947

July 31,1951

Nov. 18,1952

Oct . 31, 1955

Sept . 30, 1958

Jan . 20,1961

July 10,196 4

from Aug . 16 to Aug . 19, 1930 ; Firmly R. Baldridge, of

I,,,~va, from May n 16 to June 5, 1933 ; Harold N. Graves, of

irms, from Jan . 23 to Feb. 29, 1944 ; John S. Graham, of

North Carolina, from Nov . 19, 1952, to Jan . 19, 1953 ;

Justin F . Winkle, of New York, from Jan . 20 to Feb . 3,

1953 ; 0. Gordon Delk, of Virginia, from Nov . I to Dec . 4,

1955, and from Oct. I to Nov . 4, 1958 ; Charles 1 . Fox, of

Utah, from Jan. 21 to Feb . 6,1961 ; and Bertrand M . Hard .

ing, ofTexas, froinjuly 11, 1964 .

Vi

vii
Principal Officers of the Internal Revenue Service

As of June 30, 1964

NATIONAL OFFICERS

OFFICE OF THE COMMISSIONER

Commissioner . . . . . . . Mortimer M . Caplin

Deputy Commissioner . . . Bertrand M . Harding

Assistant to the Commissioner Edwin M . Perkins

Assistant to the Commissioner . Mitchell Rogovin

Assistant to the Deputy Commissioner . . . . .

Albert W. Brisbin

Director, Foreign Tax Assistance Staff . . . . .

L. Harold Moss

ADMINISTRATION

Assistant Commissioner . . . . Edward F. Preston

Executive Assistant . . . . . Donald C . Dawkins

Director, Program Staff . Julius H . Lauderdale

Division Directors :

Facilities Management R . Bruce McNair

Fiscal Management . . . Gray W . Hume, Jr .

Personnel . . . . .

. . . Albert J . Schaffer

Public Information . . . Joseph S . Rosapepe

Training . . . . . . . George T . Reeves, Jr .

INSPECTION

Assistant Commissioner . . . Vernon D. Acrce, Jr.

Executive Assistant . . . . . Fred G. Robinette

Division Directors :

Internal Audit . . . . . . Francis 1 . Geibel

Internal Security . . . . . William A . Kolar

COMPLIANC E

Assistant Commissioner . . . . Donald W . Bacon

Executive Assistant . . . . . Singleton B. Wolfe

Division Director.s :

Alcohol and Tobacco Tax . Dwight E. Avis

Appellate . . . . . . . . Arthur H . Klotz

Office of International Operations . . . . .

Clarence 1. Fox, Jr .

Audit . . . . . . . Henry J. Donnelly, Jr.

Collection . . . . . . . . Harold E . Snyder

Intelligence . . . . . . . . H . Alan Long

PLANNING AND RESEARCH

Assistant Commissioner . . . . William H . Smith

Division Directors :

Plans and Policy . . . . . James R. Turner

Systems Development . . George J . Leibowitz

Research. . . . . . . . Richard W . Nelson

Statistics . . . . . . . . . . Vito Natrella

TECHNICAL

Assistant Commissioner . . . . Harold T,.' Swartz

Executive Assistant .. . . . Charles G,Keebler

Principal Technical Advisor. . Joseph'S . Zucker

Division Directors :

Tax Rulings . . . . . John W. S . Littleton

Special Technical Services . . Ned W . Arick

Technical Planning . . . . . Maurice Lewis

DATA PROCESSING

Assistant Commissioner . . . . . Robert L . Jack

Executive Assistant . . . . . . . Garrett DeMots

Division Directors :

Operations . . . . . . . . Clinton L . Walsh

National Computer Center . John E . Stewart

Reports . . . . . . . . Harry K. Dellinger

Systems . . . . . . . . Monroe H . 0. Berg

OFFICE OF THE CHIEF COUNSEL

Chief Counsel . . . . . . . . Sheldon S . Cohen

Associate Chief Counsel (Litigation) . . . . .

. Rudy P . Hertzog

Chairman, Policy and Research Committee . .

Herman T. Reiling

Assistant to the Chief Counsel . Lester R . Uretz

Executive Assistant to the Chief Counsel . . .

Thomas McP. Davi's

Executive Assistant to Associate Chief Counsel

(Litigation) . . . . . . . . . E . Riley Campbell

Technical Advisor to the Chief Counsel . . . .

Robert B. Jacoby

Technical Advisor to the Chief Counsel . . . .

Paul E . Treusch

Special Assistant to the Chief Counsel . . . . .

Lester Stein

Special Assistant to the Chief Counsel . . . . .

Arthur B. White

Special Assistant to the Chief Counsel. . . . .

Samuel R . McClur d

Technical Advisor to the Chief Counsel . . . .

William P. Crewe

Staff Assistant to the Chief Counsel . . . . . .

Ray E. Williamson

Division Directors :

Tax Court . . . . . . . . John T . Rogers

Refund Litigation . . . . . James F . Dring

joint Committee . . . . W. Dean Mathis

Interpretative .

. . . . Richard M. Hahn

Collection Litigation . . . . . . . . . .

J . Walter Feigenbaum

Enforcement . . . . . William F. McAleer

Alcohol and Tobacco Tax. . . . . . . .

Robert B. Ritter

Legislation and Regulations . . . . . . .

Charles R. Simpson

REGIONAL AND DISTRICT OFFICER S

SOUTHEAST REGION .

Regional Commissioner . . . William J . Bookholt

Assistant Regional Qommissioners :

Administration . . . . . . Burton M. Graham

Alcohol and Tobacco Tax. . . . . . . . . .

F . Dale McClanahan

Appellate . . . . . . . . . Norman C . Bailey

Audit . . . . . . . . . . Harold B. Bindscil

Collection . . . . . . . . . William H. Loeb

Data Processing . . . . . Wayne S . Kegerreis

Intelligence . . . . . .. Allen T. Hollinrake

District Directors :

Atlanta, Ga . . . . . . . . . Aubrey C . Ross

Birmingham, Ala . . . Andrew J . O'Donnel, Jr .

Columbia, S .C . . . . . . Harold M . McLeod

Greensboro, N .C . . . . . . . . John E . Wall

Jackson, Miss . . .. . . . . . James G . Martin

Jacksonville, Fla . . . . Laurie W . Tomlinson

Nashville, Tenn . . . . . . James A . O'Hara

Regional Counsel . . . . . Henry C . Stockcll, Jr,

Regional Inspector . . . . . . Walter F. Connell

Director, Chamblee Service Center, Chamblee, Ga . William H . Weaver

NORTHEAST REGION

Regional Commissioner . . . . . . Harold R . All

Assistant Regional Commissioners :

Administration . . . . . . Maurice J. Taggart

-Alcohol and Tobacco Tax . George P. Rowland

Appellate . . . . . . . . Stephen C . Volpone

Audit . . .. . . . . . . Joseph M . Hooban

Collection . . . . . . . . . Matthew J. Riedl

Data Processing . . . . . . J . Orville Tuescher

Intelligence . . . . . . . . . J . Robert Murphy

District Directors :

Augusta, Maine . . . . . Whitney L . Wheeler

Boston, Mass . . . . . . . . Alvin M . Kelley

Burlington, Vt . . . . . . . . Fulton D . Fields

Hartford, Conn . . . . . Joseph J . Conley, Jr.

Portsmouth, N.H . . . . . . Charles W. Emlet

Providence, R.1 . . . . . . John A . O'Connell

Regional Counsel . . . . . . . Marvin E . Hagen

Regional Inspector . . . . Emanuel M . Schuster

Director, Lawrence Service Center, Lawrence ,

Mass . . . . . . . . . . ThomasJ. Gilfillan

MIDWEST REGIO N

Regional Commissioner. . . Homer 0. Croasmun

Assistant Regional Commissioners :

Administration . . . . . . William F. Sullivan

Alcohol and Tobacco Tax . William A . Collawn

Appellate . .

. . . . . . . Wallace T. Morris

Audit . . . . . . . . . John W. Baudencliftel

Collection . . . . . . . . . Edwin P. Trainor

Intelligence . . . . . . . . William B . Mayes

District Directors :

Aberdeen, S . Dak . . . . . William C . Welsh

Chicago, Ill . . . . . . . Eugene C . Coyle, Jr .

Des Moines, Iowa . . . . . . Ernest W . Bacon

Fargo, N . Dak . . . . . . Byron J . Rockwood

Milwaukee, Wis . . . . . . . . Emil J. Nelson

Omaha, Nebr . . . . . . . Richard P . Vinal

St. Louis, Mo. . . . . . Edwin 0. Bookwalter

St. Paul, Minn . . . . . . George 0. Lethert

Springfield, Ill . . . . . . . . Jay G. Philpott

Regional Counsel . . . . . . . Frank C . Conley

Regional Inspector . . . . William A . Costello

Director, Kansas City Service Center, Kansas

City, Mo . . . . . . . . . . Arnold S . Dreye r

CENTRAL REGION

Regional Commissioner . . . . Ernest H .Vaughn

Assistant Regional Commissioners :

Administration . . . . . . . F . Dean McCrory

Alcohol and Tobacco Tax. . Henry R . Peterson

Appellate . . . . . . . . G . Waldron'Snydcr

Audit. . . . . . . . . . Michael A . DeGuire

Collection . . . . . . . . . William J . Grabo

Intelligence . . . . . . . . . . . . . Vacant

District Directors :

Cincinnati, Ohio . . . . . . Philipp L . Charles

Cleveland, Ohio . . . . . . Melvin J . Burton

Detroit, Michigan . . . . . Raphael 1 . Nixon

Indianapolis, Ind . . . . . . . James E . Daly

Louisville, Ky . . . . . . . Gilbert C . Hooks

Parkersburg, W . Va. . . . . Nathaniel Looke r

Regional Counsel . . . . . . . Clarence E . Price

Regional Inspector . . .. . Gordon M . Anderson

Director, Cincinnati Service Center, Cincinnati, .

Ohio . . . . . . . . . . . . Everett L . Meek

SOUTHWEST . REGION

Regional Commissioner . . . . . B . Frank White

Assistant Regional Commissioners :

Administration . . . . . . . . . . . Vacant

Alcohol and Tobacco Tax . Harold S . Caplinger

Appellate . . . . . . . . . . . Tom F. Reese

Audit . . . . . . . . . Lawrence M. Stewart

Collection . . . . . . . . . . Alfred N . Kay

Intelligence . . .

. . . William E. Beloate, Jr .

District Directors :

Albuquerque, N. Mex . . . Clyde L . Bickerstaff

Austin, Tex . . . . . . . . Robert L . Phinney

Cheyenne, Wyo . . . . . . . Paul A . Schuster

Dallas, Tex . . . . . . . . Ellis Campbell, Jr .

Denver, Colo . . . . . . . . . V. Lee Phillips

Little Rock, Ark . . . . . . . Fred W. Johnson

New Orleans, La . .

. . . . . Chester A . Usry

Oklahoma City, Okla . . . . Earl R. Wiseman

Wichita, Kans . . . .

Viii ix

. . . Harry F. Scribner
Principal Officers of Internal Revenue-Continued

REGIONAL AND DISTRICT OFFICERS-Contl n Used

Regional Counsel . . . . . . . J. Marvip Kelley

Regional Inspector.

. . . . David 0. Lowry, Jr.

Director, Austin Service Center, Austin, Tex . .

Ervin B. Osborn

NEW YORK REGION

Regional Commissioner . . . . Howard D . Taylor

Assistant Regional Commissioners :

Administration . . . . . . Arthur J . Collinson

Alcohol and Tobacco Tax .

. . Edward J. Fox

Appellate . . . . . . . . . . Ellis L. Zacker

Audit . . . . . . . . . Alfred L . Whinston

Collection . . . . .

. . . Elmer H . Klinsman

Intelligence . . . . . . . Francis J . Kennedy

District Directors :

Albany, N .Y . . . . . Edward J .Fitzgerald

'

Jr

Brooklyn, N . .Y . . . . . . Thomas E . Scanlon

Buffalo, N .Y . . . . . .

. . . John E . Foley

Manhattan . . . . . . . . Charles A . Church

Regional Counsel .

. . . William V. Crosswhite

Regional Inspector . . . . . . Sidney M . Wolk

MID-ATLANTIC REGION

Regional Commissioner . . . . Dean J . Barron

Assistant Regional Commissioners :

Administration . . . . . Robert D . McDowell

Alcohol and Tobacco Tax . . . Louis DeCarlo

Appellate . . . . . . . . William E. Steynen

Audit . . . . . . . . . . Joseph M . Shotz

Collection . . . . . . . William F. Culliney

Data Processing . . . . . Edward J . Manning

Intelligence . . . . . . . . Daniel L. Tucker

District Directors :

Baltimore, Md . . . . . . . . Irving Machiz

Newark, NJ . . . . . . Frank S . Turbett,jr.

Philadelphia, Pa . . . . . Kenneth 0. Hook

Pittsburgh, Pa . . . . . . . John H . Bingler

Richmond, Va . . . . . Ambrose M. 4toepler

Wilmington, Del . . . . . . Horace L ; Brown

Regional Counsel . . . . . . . Cecil,fl . Haas

Regional Inspector . . . . . . . Eari'L . Fuoss

Director, Philadelphia Service Center, Philadelphia, Pa . . . . . . . Anthony L . Carrea

WESTERN REGIO N

Regional Commissioner . . . . Harold Hawkins

Assistant Regional Commissioners :

Administration . . . . . . . Homer C . Gant

Alcohol and Tobacco Tax . . . Isharn Railey

Appellate . . . . . . Gardiner B . Willmarth

Audit . . . . . . . . . Raymond F.Harless

Collection . . . . . . . . Charles D . Moran

Data Processing . . . . Frederick W . Bearman

Intelligence . . . . . . . Herman F. Kuehl

District Directors :

Anchorage, Alaska . . . . . . Lewis J . Conrad

Boise, Idaho . . . .

. . . Calvin E . Wright

Helena, Mont . . . . . . . . Frank J. Healy

Honolulu, Hawaii . . . . . Vaughn W . Evans

Los Angeles, Calif . . . . . Robert A . Riddell

Phoenix, Ariz . . . . George D . Patterson, Jr .

Portland, Oreg . . . . . . Arthur G . Erickson

Reno, Nev . . . . . . . . . Dalmon Davis

Salt Lake City, Utah . . . . Roland V. Wise

San Francisco, Calif . . . . Joseph M. Cullen

Seattle, Wash . . . . . . . . Neal S. Warren

Regional Counsel . . . . . . . Melvin L . Sears

Regional Inspector . . . . . . . Henry A. Feltz

Director, Ogden Service Center, Ogden, Utah . .

Robert H . Terry

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Interpretation and . Communication

Of Tax Law to Taxpayers

GENERAL

The function of the internal Revenue Service is t o

administer the Internal Revenue Code, our national

tax policy as determined by Congress . The Service

strives to administer the tax laws in a vigorous, yet

reasonable manner.

It is fitting that the Service pay tribute here to the

American taxpayer. His honesty, his patience, and his

faith in the integrity of those who constitute his Fcdcral Government make possible the facts reported in

this volume. The American system of self-assessment

and voluntary payment is a testimony to the mutual

trust between the taxpaying citizen and his government. The Internal Revenue Service constantly

strives to continue and further strengthen that trust.

At the heart of reasonable and effective administration is interpretation and communication of tax law to

taxpayers. To extend voluntary compliance, under the

self-assessment system, it is the duty of the Service to

accommodate administrative procedures to the convenience of taxpayers and to apprise them fully of their

rights and obligations . The several programs directed

toward accomplishment of these goals include . direct

personal taxpayer assistance in district and local officcs ; publication of many tax guides covering separate

tax situations ; dissemination of information to taxpayers by a broad public information program through

various news media ; and the preparation and distribution of regulations, rulings, tax forms, and instructions .

TAXPAYER PUBLICATIONS PROGRA M

The basic purpose of this program is to provide taxpayers with a means for self-help. In so doing, the

Service issues approximately 60 publications in plain

everyday language for the information and guidance of

taxpayers on practically all aspects of Federal taxation .

In addition, detailed instructions are furnished with

most tax return forms.

Continuing the Service's emphasis on voluntary compliance through a more informed taxpaying public,

numerous improvements and expansions of the program were accomplished during the year or scheduled

for the near future. For example, the 1964 edition of

Your Federal Income Tax contained brief explanations

of new provisions of th e laws which are effective for the

first time in the current tax year . A description and

list of publications appear on pages 58, 59, and 60 .

PUBLIC INFORMATION PROGRA M

GENERAL .-In its efforts to provide, through mass

information media, maximum information to the taxpaying public, Internal Revenue Service's public information program continued at an accelerated pace.

Information efforts commencing in 1963 and carried forward into the first portion of 1964 contributed

to the achievement of substantial public understanding

of the new regulations on travel and entertainment expenses . Throughout the year continuing information

emphasis was placed on the expanding automatic data

processing system to help insure more complete and

accurate returns preparation which is needed for the

machine operation to work most effectively.

With the enactment of the Revenue Act of 1964 and

for the remainder of the fiscal year, special information campaigns were conducted to advise employers

of new withholding rates ; provide information on

preparation of 1964 estimated tax returns on the basis

of new tax rates and other provisions of the law ; and

provide instructions to help taxpayers avoid underwithholding.

The interest and cooperation of the press and other

mass media throughout the country helped ins re a

condiming flow of important tax information to the

public .

RELEASES AND INQUIRins.-The National Office issued 125 general news releases and 120 technical information releases during the year. This was in addition to providing field offices with materials for local

adaptation which resulted in hundreds of field releases.

Numerous feature articles were also prepared for general and specialized publications .

The National Office serviced over 32,000 requests

and inquiries during the year by telephone, correspondence, and personal visits from mass media representatives and other interested persons . Inquiries

and requests covered the full range of technical, proccdural, and policy matters, and concerned speeches,

Service publications, tax exempt organizations, offers

in compromise, actions concerning prominent or notorious individuals, etc. Many cases involved arranging

INTERPRETATION AND COMMUNICATION OF TAX LAW TO TAXPAYER S

interviews of knowledgeable operating officials, conducting research or drafting background materials for

use by the mass media in developing news stories and

features on tax matters .

FILMS, RADIO, AND TELEvISION.-During the year 25

filmed spot announcements were used by 520 television

stations. Most of the announcements provided tax

hints and other helpful information applicable to the

income tax filing period, and their showing was concentrated from January to April .

Two new documentary films were issued. One en.

tided, "How Do I Do It?" running 28 minutes, shows

how an individual should proceed to fill out his income

tax return. A 15-minute film, entitled, "Moonshine

and Taxes" deals with the Service's Alcohol and Tobacco Tax Division and includes sequences on illicit

liquor activity and on Federal firearms laws . One or

more of these and previously issued documentaries were

shown by 52 television stations and before 5,691 civic

and other groups . In addition, three 5-minute films

were prepared for continuous showing on closed circuit television at the New York World's Fair.

As in the past, radio stations throughout the country made liberal use of spot announcements prepared

by the National Office and by field offi~ces. Similarly,

officials at all levels provided tax information to large

segments of the public by appearing on interview,

panel, telethon, and other public service programs over

radio and television facilities .

TEACHING TAXES PROGRAM

The objective of the Teaching Taxes Program is to

show students how to fill out Federal income tax returns. The Program also introduces students to the

basic principles and rules underlying the Federal selfassessment system of taxation, thereby acquainting

them with the taxpaying responsibilities of citizens in

a democracy . Under the Program the Service distribDies sets of instructional materials to schools throughout

the country . They are prepared primarily for the high

school student and are used as a supplement to mathematics, civics, economics, business, and various other

courses .

The widespread success and growth of this Program

continues . Over 3 .1 million students participated this

year and schools participating rose from 23,000 in 1963

to 24,500 in 1964 .

TAXPAYER ASSISTANCE PROGRAM

The Taxpayer Assistance Program is a basic component of the Service's program for fostering voluntary

compliance. Taxpayers are assisted by Specially selected

employees who have demonstrated their technical proficiency and their ability to deal effectively with the

public .

On July 1, 1963, the Service instituted a new and

broadened year-round Taxpayer Assistance Program .

Since this is the first year under the new systern,the

data cartnot be compared with information provided

in this report in prior years. However, as the statistics

below indicate, the demand for assistance is great .

Nationwide, almost 23 million taxpayers received

help with their tax returns or tax problems during

1964 . Of these, more than 14 .4 million received help

through telephone inquiries, the method stressed as the

type of assistance taxpayers should normally seek .

The other 8.6 million taxpayers visited Internal Revenue Service offices during the year . Of these, 7 .0 million were furnished self-help assistance in preparation

of their returns or answers to their specific tax inquiries .

The major portion of the tax return, schedule, or form

was completed by Service employees for the remaining

1 .6 million taxpayers . The Service used less than

310,000 man-days in furnishing the various types of

assistance .

TAX RETURN FORMS PROGRAM

The past year was one of considerable activity in

the return forms area due to the numerous provisions

added to the Internal Revenue Code by the Revenue

Acts of 1962 and 1964 . Public Law 87-792, SelfEmployed Individual Tax Retirement Act of 1962,

necessitated the preparation of the new Form 2950SE

and corresponding revisions of income tax returns to

reflect the self-employed retirement deduction. The

1 962 Act set forth new rules under which gains on dispositions of certain depreciable property, called "Section 1245 property," are taxable as ordinary income to

the extent of depreciation and amortization deducted

after 1961 . Schedule D of the income tax forms was

substantially revised to reflect this change.

Reduction of the tax rates under the 1964 Act ritquired the preparation of new tax rate tables. Form

1040ES (supplement) containing a summary of rate

changes was issued along with various fiscal year return

forms for taxpayers with taxable years beginning in

1963 and ending in 1964 .

Employer's Tax Guide, Circular E, was revised to

reflect the new withholding rates which became cffective March 5, 1964, and was immediately distributed

to employers. Form 3435, Notice of Identifying

Number, was revised to eliminate reference to Form

3227, Application for Account Number (Form SS-5,

Application for Social Security Account Number, used

in lieu of Form 3227 on and after May 1, 1964) .

Form 940, Employer's Annual Federal Unemployment Tax Return, was redesigned as a paper form

which eliminated the punclicard forms 940x, 940y,

940z, and the Separate Schedule A .

2 3
ANNUAL REPORT a CHAPTER ON E

A significant step forward W25 made by the adoption

of a documentary stamp tax meter system under which

a person or firm using a substantial number of these

stamps may apply on new Form 2969 for permission to

use such a meter, and may prepare Form 2970 to be

presented with the remittance for stamps used when the

meter is brought to a designated internal revenue office .

Considerable time and effort was expended in redesigning Form 1099, U.S . Information Return for

Calendar Year, to obtain a form most adaptable to automatic data processing with a view toward future use

of optical sunning as part of such processing. This

form is used to report income other than wage payments reported on Form W-2. Over 100 million

Forms 1099 are filed annually.

President Kennedy announced on July 18, 1963, a

series of coordinated actions to reinforce the Administration's program to correct the United States balance

of payments deficit, including a request for a . Interest

Equalization Tax, to be cffcctive July 19, 1963 . This

special temporary proposed excise tax would remain in

effect through 1965 . A bill to provide for the tax,

H .R . 8000, was introduced in the Congress shortly

thereafter (Public Law 88-563 signed September 2,

1964) . Ile tax necessitates eight new forms, four of

which have already been placed in use .

Form 706, U .S. Estate Tax Return, was revised to

reflect the inclusion of real property situated outside

of the United States in the gross estate in .accordance

with the provisions of the 1962 Act .

New Form 2848, General Power of Attorney, and

Form 2848-A, Limited Power of Attorney, were issued as part of the project to simplify power of attorney requirements .

Form 1128, Application for Change in Accounting

Period, was redesigned to eliminate the necessity for

typing of approval or disapproval action letters, thus

reducing processing costs and expediting handling.

Application for Change of Accounting Method, Form

3115, was expanded to obtain all necessary information

and reduce the need for correspondence to complete action on applications .

Detailed instructions relating to the computation of

net operating loss carrybacks were added to Form 1045,

Application for Tentative Carryback Adjustment, to assist individuals in preparing correct applications .

Many forms other than those commented upon above

were revised or redesigned in order to reflect new leg.

islation, regulations, arid employee suggestions .

New forms with filing instructions which were issued during the year are listed on page 60.

REGULATIONS PROGRA M

GENERAL.-Scventy-four final regulations, 2 Executive orders, and 33 notices of proposed rulemaking,

relating to matters other than alcohol and tobacco taxes,

were published in the Federal Register. These regulations were issued under Zrovisions of the Internal

Revenue Code of 1954 as originally enacted, subsequent

public laws, or on the basis of an administr~tive determination. I

Twelve public hearings on the provisions of the

proposed regulations, which were published this year,

were held in accordance with the provisions of the

Administrative Procedure Act. Approximately 800

taxpayers or their representatives participated.

The more -important regulations and Treasury Decisions are described on pages 60, 61, and 62 .

TAX RULINGS AND DETERMINATION LETTERS

TAx RULINGS-During the year, 41,846 requests

from taxpayers for rulings and requests from field

officcs of the Service for technical advice were processed. These included 38,910 requests which had been

received from taxpayers or their representatives and

2,936 requests from field offices . At the close of the

year 6,315 requests for rulings and technical advice

were on hand .

In addition to the processing of rulings and techniCal advice, 9,314 formal and informal technical conferences were held with taxpayers and their representativcs .

An analysis of the rulings and technical advices processed, by subject matter, follows :

Requests For tax rulings and technical advice processe d

T . . . Fiel d

subject

Total

reqpay" ...

"i s

Total_---------------------------------- 41 .846 38,910 2,936

In.,,. I " d' .xl- profit, taxes

---G_ ...:

"" Y

..p arm a. -tuplaymint ii .

32 472

1~202

31 469

1 : 151

1.00

5 1

Exist'

"' "---------------------------- - Al l 1'' 'b`'' t

61 1

5 376

467

81

144

coho n to a = axes ------------------ 195

Ot or excise taxes. . . --------------

--

1:800

4 1

1 :331

1

'469

Engineering questions (deprecation, ------ 1 385 311 74

DETERMINATION LETTERS.-Many trust funds are established to pay retirement benefits, to share profits, or

to pay stock bonuses to employees. -If the trust meets

legal requirements, employers can deduct their contributions to the trust and the income of the trust will be

tax-exempt . Based upon established rules and regulations, district offices issued 12,798 determination letters

involving the tax-exempt status of such trusts .

Taxpayers may appeal adverse field determinations

relating to employee benefit plans . Of the 64 appeal

applications acted upon by the National Office, 21 decisions resulted in favor of the taxpayer, 7 partially in

his favor, and 36 against the taxpayer.

District offices issued 7,399 determination letters to

organizations seeking to establish exemption from FcdINTERPRETATION AND COMMUNICATION OF TAX LAW TO TAXPAYERS

cral income taxes under provisions of the Internal Revcnue Code which authorize a tax exempt status for

qualifying charitable, religious, education, and other

nonprofit organizations.

The following table shows the types of determinations and bencfit plans involved during 1964 :

Determination letters issued 0. sernployete benefit plan . and

exempt organizations

Initial qualifications :

Approved------------- --------

Employees participating

under plan _ ----------

Disapp ved----- ---------

To r nrin at

Closed without to na_ ------------ . .once of - jtifi~

ruination letter_ ----------------

Employee benefit plans

prefit.

sharing

Pension of

annuity

Stock

bonus

5,213

308,863

97

501

396

1,131

44S 621

122

505

440

28

20,

109

Exempt

wgimi.

rationtl

6,936

1,43 6

Many of the tax benefits of employee pension and

profit-sharing plans have been extended to qualified

plans established by and for self-employed persons .

From January I through June 30,1964, individual plans

approved by district offices totaled 7,001 .

CLOsiNG AGREEMENTs-Closing agreement cases

involving the tax status of prospective transactions are

considered by the Tax Rulings Division of the National

Office . Four cases were received during the year, 21

were closed and 4 are pending.

PUBLICATION OF RULINGS, PROCEDURES, AND ANWOUNCEMENTS.-As an important part of the continuing effort to maintain a high level of voluntary Compliance and to assure uniform application of the tax

laws, 348 Revenue Rulings and 39 Revenue Procedures

were published in the weekly Internal Revenue Bullctin, as follows :

Revenue ruling, and procedures published

Typ e

Total ---------------------------------------------------

Administrative . . . . . . ----------------- .... . . -----------------

Alcohol and tobacco taxes . . . . . . . . ... .... .... .. .. . . . . . . . . . . . . . . .

Em %ment taxes --------- _ ----- __ . . . . . . . . . .

Eat" no ------ ------ - --

"I Ifil to

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

E.u. I

Income tax ------------------------------------------------------- .-... . . . . . . . . . . . . . . . . .. ... ... ..... .. . . . . . . . . . . . . -

S.lt..Mpl.y. . .t I.. ... . . . . . . . . . . . .. . --------_------ . . . . . . . . .

Number

38 7

382

4

!"I

2

The more significant Revenue Rulings and Procedures are summarized on page 62 .

In addition to announcements relating to proposed

regulations and those relating to actions on decisions

of the Tax Court of the United States, 141 announcements of general interest were published . Nine charted

the status of tax bills reported out of Committee by the

88th Congress, 12 listed the names of organizations to

which contributions are no longer deductible under section 170 of the Code, and 14 announced tax adminis.

tration agreements with the States of Arkansas, Colorado, Florida, Idaho, Massachusetts, Nebraska, New

Hampshire, New Mexico, New York, Oklahoma,

Tennessee, Virginia, Washington, and Wyoming.

Other significant announcements of general interest

are described on page 63.

To insure timely dissemination of important technical information to all persons concerned, the substance

of many of the published documents was issued in the

form of Technical Information Releases, prior to publication in the Bulletin . Of the 120 such releases

issued, 12 announced the position of the Service as a

result of court decisions having widespread effect on

tax administration, 14 related to other matters also

covered by Revenue Rulings, 19 related to Revenue

Procedures, and 54 related to announcements of gen .

eral interest published in the Bulletin. Twenty-one

Technical Information Releases related to specific

provisions ;fthe Revenue Act of 1964 .

4

5

743-871 0-65-2
2

Internal Revenue Collections

and Refunds

INTERNAL REVENUE COLLECTIONS AND REFUND S

Tax dollars not specifically designated as to purpose

are no less important . They provide the services that

Congress has decided are necessary for the security and

genct .,41 Ivelfare of the people of this nation . The'tollowing table shows, by class of tax, the source of the

$112.3 billion in total revenue that was paid into the

Treasury in 1964 . The table compares 1964 with the

preceding year collections, showing increases and the

decreases in unemployment and tobacco taxes by

amount and percent of change. It also shows the perccntage that each class of tax bcars to total revenue

in 1964 .

Gross Internal revenue collections

III thousands of dollars . For dots Is see table 3, p . 821

24 .3

INTERNAL REVENUE COLLECTIONS

Billion, of dollar,

Corim

'a

tion Individual Employment Estate

incom

a

in... is. . . and gift

t. . .. taxes us. . .

1964

Total ,

112.3

Excise

taxes

1963

105.9

GENERAL

In 1964, the Service continued its program to improve service-to convert processing methods and

records to a modern automatic data processing system .

It is a big program . When it is in full operation, the

records of the Service will be as accurate, as complete,

and as rapidly produced as machines and men working

together can make them . This conversion is a step

forward in meriting continued public confidence in one

of the most vital operations of the government of the

United States-collecting the internal revenue .

A record-breaking $112 .3 billion in Federal taxes

were collected in 1964 . Refunds of overpayments

amounted to $7.1 billion on which interest was paid

in the sum of $88 .5 million .

A large portion of tax collections go into special accounts for particular purposes. These are trust funds

and consist of (1) Federal insurance contributions and

self-employment insurance contributions from social

security taxes; (2) the highway trust fund from taxes

on gasoline, other motor fuels, trucks, buses, tires,

tubes, and tread rubber; (3) the railroad retirement

fund from taxes on the wages of railroad employees ;

and (4) the Federal unemployment trust fund from a

tax paid by employers .

In this same general category of trust funds arc certain tax collections earmarked for special use . These

include the excise taxes on fishing rods, creels, firearms,

shells, and cartridges. Approximately $25 million was

paid in taxes on these items in 1964. The money collected is turned over to the Department of the Interior

for fish and wildlife preservation . Another earmarked

fund is the total excise tax collections on Puerto Rican

products . Internal revenue tax laws provide that these

funds will be credited to the Commonwealth of Puerto

Rico for its own use. In 1964 this amounted to over

$45 million .

The American people see these special-purpose tax

dollars at work providing direct benefits, sometimes

very personal ones . Some good examples are the benefit payments received monthly, under the Social Security laws, by retired people, disabled wage earners,

widows, and orphaned children . The interstate highway-building program, evident nationwide, is financed

principally by the taxes paid on gasoline, tires, tubes,

and related items .

Increase or decreas e Source Percent of 1964 1964 196 3

collector,

Amount Percen t

Grand total I ------------------ __...... .. . ... ... .. . . . . . . . . . . . . . . . . . . . 100.0 112 .260,257 105, 925, 395 6.334,862 6 .0

Income taxes, total .--------------_------------ -------- . . . 70.3 78,891,218 75,323.714 3,567,5D4 4. 7

Cer

'

.110n . . . . . . . . . . . . . . . . . . . . . - .. ... ........... ... .. . . . . . . . __ . . . .

Z7 21 .6 24 300 863 22 336 134 1 964

729

8 .8

1d us m 1, total. . . . . . . . . . . . . . . . . . . . . .. ... .. ... . ---_--------------- -

a

. 6 54 : 59D: 354 52:937:581 1:602 : 7 7 3 3. 0

Wit held by employers I . . . . . . .. 31 1 31 211 1

1

31.718 .70 540,179 1 1

Other 2____ . . . . . . . __ . . . . . .

13 ,: is 1 :~3 :

473 14 .268,878 1.062,595

7: 4

Employment taxes, total_ ---------- ----------------------- _ . . . . . . . . . . . . . . ... 15.1 17,002,504 15, 001, 486 1 .998,018 13. 3

Old-amd:nd disability insurance I ----------_---- ------------- . . . . . . . . . . .

] I t ib ti .

11. 1 1 1 : 517 71

:

1 3 :484 37 9

:

2 073 404

: :

15 .4

is nsurance con r u ons ---------------_----- _. . . . . . . . . . . . . . . .

11" IIP 1cry ,, n1 1 m am c oltrilsither ------------------------- . . . . . . .

13

.

0

.9

4 5

71 187

996 596

12

548 286

936,093

2 022 90 1

.Y. , 50,503 4' . . , ,. '. uy . .a. s

Ummnp t t

.

. . . . .... ------------------- .8

8

850: 58 948 464 606

_1

Rail 7

road retirement . . . . . .. . .. ..... ... .. . .. . .. . . . . . . . . . . . . . . . . . .. .5 593,864

5

71 :644

2 :

2 220 3 9

Estat: and of it taxes -------------- _ --_------------ - . . . . . . . . . . . . . . . . . . . . . .. 2.2 2, 416 303 2 187 457 22 94 6

Excis taxes, total . .. . . . . . . . . . . . . . . . . . . . . . . . ...... -------------- 12 4 8 0 ,

9

B, 5(): 2R J3 :40i,737

:

54 0 494 1 :0

A cohol .- . . . . . . . . . . . . . ----- -

l'

ii! 3 177 4

"

1 4

'

'1

35 84 3

1

3. 9

T . b I,.. - ~ ------- --------- 1 .8

2 : ~ : 5

a 2 45

, : G

79: 23 7 26~692 -1 .3

Oth . . ... . . . . . . . . . . -------------------------------------- . . . 7.4 8, 320.188 1 7,988.944 431,344 5 . 5

I Collections are a,=to exclude amounts transferred to the Government of Gu mis . For details a, isit dbl.j, p. 73 ..it foatect

,0,eltio 1 Estimat n d .-Co I of individual income tax withhold are not reported separately form III so an - Hily insurance taxes sin"wages " .8 4 ; and salaries . Similar

3 of individual income tax not withhold are no report

1,

from

fit. .,. and dlinibilifty in . .am

d a on, of . fares an self-ein,11,11cl molnl _!n2,,o.1I; 11 lvage and disability insurance tax collections shown 1, best on a ficiates made by the Secretary of the Treasury pursuant to the provis,sing, S

I ad separatel y .-Ity

Act a amended, and locl ud" fity If Id,,gI :x I, and disability insurance taxes h . The estimates shown for the 2 classes of individual income taxes were derived ad by subtrase r" lh

old-age and disabl insurance theater from I a combined totals reports

Itite-C .I .indar year figures by region,, districts, States and other area, for .tested type, of taxes, may be o4l.lned from the Public Information Division, Internal

Revenue Service, W ashinglon, D.C . 20Z24 .

INCOME TAXE S

In March 1964, a new tax law, the Revenue Act of

1964, was enacted to reduce income taxes on individual

citizens and on corporations . One purpose of this law

was to strengthen the economy by encouraging business expansion, and by increasing net income received

by wage earners so that more money Can be used for

purchasing goods coming out of expanded production .

Furthermore, the introductory declaration written into

the Act states, in part, as follows :

It is the sense of Congress that the tax reduction provided by

this Act, through stimulation of the economy, will, after a brief

transitional period, raise (rather than lower) revenues . . . .

While the immediate effects are not readily apparent in annual collection figures for the full fiscal year,

an analysis of the collection data for the first half and

for the final half of the year show some interesting and

significant facts .

The table that follows shows 'collections of corporation income tax and of individual income tax withheld

from wages from July I to December 31, 1963, and from

January I to June 30, 1964 . It compares these with

the corresponding 6-month periods in fiscal year 1963 :

Collections of corporation income tax and individual income

tax withhel d

Period

(I n thousands of challana l

Fiscal yea r

July I

-Dre.

jam I-June 30 --------

Total. . . .... ...... ...

Jan July !-Do, . -Jure. 11 --------------- 30 . . . ..

19G4

I9~ '242: '39'1

15,058,472

312D J2 :2101:31.1~1

19,138,495

Corporation

Increase or decrease.

1963 Amount Percen t

11.3310 :121

8,81 95

1 3,525,839

I . MJ32: '0' %

1,532,633

Individua l

31 : 97 51 "

Is 7 : '902'

19, 760, 8010 622,305

1 .4

6. 1

-3. 2

6 7
ANNUAL REPORT as CHAPTER TW O

INCOME TAXES-CORPORATIONS

In the preceding table the effect of the new law in the

earlier payment of corporatictris estimated income tax

installments is apparent. At the same time that rates

were reduced, the law moved Up payment dates for

certain corporations by adding two new dates for paying part of the current year's tax . Now, corporations

which estimate that their liability will be in excess of

$100,000 will make payments of such excess in the

fourth month and the sixth month of their tax years in

addition to the former due dates in the ninth and twelfth

months. This provision of the law has the effect of

putting corporations gradually on the same basis as

individuals in making four quarterly payments of estimated income tax . The rate of tax is graduated, for

corporations, on these two new payment dates, starting

at I percent in 1964 and reaching 25 percent in 1970 .

As indicated in the table, the net result was an 11 .3

percent increase in the January to June 1964 period

(over January to June 1963) as compared with a 4 .9

percent increase in the July to December 1963 period

(over the comparable 6 months of the prior year) .

INCOME TAXES-4NDIVIDUALS

Employers were notified of the reduction in the rate

of withholding, from 18 percent to 14 percent, and

effective on March 5, 1964, deductions from wages

reflected this change.

The table shows that employers' payments of individual income tax withheld from employees' salaries

increased 6.1 percent in the 6 months ended December 31, 1963, but decreased 3.2 percent in the second

half of the fiscal year. The comparisons are with the

corresponding periods of the prior fiscal year ,

The rate reduction on individual income is effective

in two steps . For the year 1964 the change will be

from the former 20 to 91 percent rate scale to a new

reduced scale of 16 to 77 percent . A further reduction

will become effective in 1965 when the tax rates will

range from 14 to 70 per cent. The effect of the changes

in rates on payments made with individual returns will

be apparent in fiscal year 1965 .

EMPLOYMENT TAXE S

Employment tax collections arc trust funds . They

are set aside for specific benefits or services .

Two factors have influenced recent trends . They

are rate changes and the increasing number of employed people .

Federal insurance contributions (Old-Age and Disability Insurance under the Social Security Acts) am

paid in equal amounts by employee and employer.

The rate increased from 3Y8 percent to 3ya percent

effective with wages received in calendar year 1963.

Thus the combined employee-employcr rate rpse from

6!/4 to 7% percent, a 16 percent increase, during the first

part of fiscal year 1964 just as it did in the I~uter part of

fiscal year 1963 . On a comparative basis, there was no

rise in rate after January 1, 1964. The increase of $2.0

billion, 16 .1 percent, for the year is therefore considered

to reflect the higher rate, in part, and also the increase

in employment .

Self-employment contributions are paid by the in.

dividual taxpayer with his final income tax return, and,

at the taxpayer's election, with his estimated tax payments . This tax was also affected by a rate increase

from 4 .7 percent to 5.4 percent effective as to income

received after January 1, 1963 . These collections in

fiscal year 1964 increased by $50 .5 million or 5 .4 percent.

Payments of Federal unemployment tax decreased

$97.6 million, 103 percent, in 1964 as a result of the

decrease in the rate of tax. Effective with wages paid

in calendar year 1963 the rate %-as reduced from 3.50

percent to 335 percent . This rate was applicable to

the annual returns due January 31, 1964.

EXCISE TAXES

The three largest sources of excise tax revenues am

distilled spirits, gasoline, and cigarettes . In 1963 these

three taxes produced 52 .3 percent of total excise collections ; in 1964 the percentage was 51 .4. Gains were

recorded in distilled spirits and gasoline collections this

year but since the "Report of the Surgeon General's

Advisory Committee on Smoking and Health" in January 1964, fiscal year figures on cigarette taxes paid

have shown losses culminating in a $33 .8 million drop

or 1 .7 percent .

NVhile the decreased cigarette tax collections have

caused total tobacco taxes to show a $26.7 million decline, excise taxes as a whole in 1964 increased $540 .5

million, or 4 .0 percent, and were 12 .4 percent of gross

revenue . A substantial part of the excise increase was

attributable to the 10 percent manufacturers' tax on

passenger automobile chassis . Thew collections were

up $186 million, or 12 percent, over 1963 .

INTERNAL REVENUE COLLECTIONS AND REFUNDS

ADMINISTRATIVE BUDGET RECEIPTS

SOURCE OF BUDGET DOLLAR - 1964

Administrative Budget Receipts 89 .5 billio n

Individual Income Taxes

54.4%

Corporation Income Taxes

26.3 %

Excise Taxes 11.5 %

Estate and Gift Taxes 2 .7%

Customs IA%

Miscellaneous 3 .8 %

"Administrative budget receipts" is that part of the ternal revenue, customs duties, and receipts from

total collections of the Federal Government available miscellaneous sources are reduced by transfers to trust

for financing the many operations and programs in- fund accounts, refund of receipts, and interfund transcluded in the President's annual budget . To arrive at fers . The following table reflects the source of gross

administrative budget receipts, gross collections of in- receipts, deductions, and administrative budget receipts :

Gran collections, deductions, and administrative budget receipts

In thousands of dollarsi

S... . . Gran receipts Trust fund Refunds Interlard

Adoni.b.

UsIN.

transfer . transactions budget

receipt s

Individual Income taxes :

Withheld -------------------------------------------------------- -------- 39,258,881 ------_------ - _.... ... ... . . . . . . . . . . . . . . .. ...... . .. .

Other . ... . . . . . . . . . . .. .... ... .. . . . . . . . . . . . . . . . . . . . . . . --------- . ...... --- 15,331,473 ------------- I . . .. ... ... ... . . . . . . . . . . . . . . . . . ...... ... .

T.tal__ . . . . . . . . . . .......... .. . .. . . . . . . _ -------- -------------------- 54, 59D, 354 -------------- 5,893.027 ------------- 48,697,327

Corporation income taxes . ..-------------- ------------ . . . . . . . . . . .. . .. ... .. ... . 24,300,863 ------- 808,341 -----------_ 23,492,522

Excise tax-, :

High-if trust land ------------------------------------- : ------------------- 3,609,077 3 493 441 125 636 ------- . . . . . . . . .

Other --- . . . . . . .. --------------------------------------- -------- 10,341.155 --- ... ... ... . 94:005

: :

. .. . .

Total__ . . . -------- ---------------------- . . .. . .. . .. . ..... _ 13,950,232 3,493,441 219.641 . . . . . . . . . . .. . . 10,247,150

' ' em" '(O d'.1"'. I Insurance . . . . . . . . . . . . . . -------------

------ _

1 5,557 783 15 ' 391 ' 983 165,900 . . . . . . . . . . .

: -------- - Railroad retirement ------------_- . . . . . . . . . . . . . . . . . . . :

. ---------- ------ -

593: ssa 593 477 387

Unemployment Insurance----- -------- ------- _ ----------- . ......... . 850,858 846: 181 4,677 ----------- - . . . . . . . . . . ... . . . . .. ..----- .... .-.

Total . . . . . . . . ---_------------- . . . . . . . . . . . . . . . . . . . . . . . . . . ----------- 17,002,504 16,831,640 1 7o, BrA . . . . . . . . . . .. .. . . . . ..... .... .

Estate and sift taxes. . . ... . ... __ -------- ------- __ . .. . ... __ 2,416,303 -------------- 22,704 . . . . . . . . . . .. _ 2,393,599

Total Informal revenue,. ..--------------------------------------------- _ 112,260,257 20,315,081 71114,576 .. . . . . . . . .. . . 84. M, 600

d~uxted to conform with "Statement of Receipts and Expenditures of the U nited States

overnment ------------------- ------- ----------- I ---- I ---------------- - ------------ 36,102 . . . .. ... ...... . . . . . . . . . . . . . . -36 .102

Adjusted total internal revenue . . . -----------------_---- 111 2 7

"

!!, 3 3 7, 4 576 84 794 49 8

Custo

. . . . . . . . . . . . . . ... ----------- _. . . . . . . . . . . . . . . . . . .

s' ei ;

1 :2

84 :176

___ .

.

. . :

32 313

. .. .

1:251:863

Miscellammu r ------ --1. ...... .. . . . . . . . . . . . . . . . . . . . - . . . . . . 4 .077,121 1,197 663,622 3,411,301

Total . . . . . . . . -------------- -------- . . . . . . -------- 117,621,555 20,351,193 7,148,086 663,622 89,458,664

8 9
ANNUAL REPOR T

INTERNAL REVENUE REFUND S

NUMBER OF REFUNDS.-ThCrC were 42 .1 million refund checks issued this year, an increase of 1 .4 million

or 3 .6 percent over 1963. Individual income tax refunds account for 97.4 percent of the increase in

number.

Of the total, individual income and employment tax

refunds account for 96.5 percent, and individual excessive prepayments alone account for 94 .1 percent. The

excise tax category accounts for most of the remaining

refunds (3 .2 percent of the total) while corporation

refunds account for only 0.3 percent.

AMOUNT OF REFUNDS (INCLUDING INTEREST) .-Thc

total amount of refunds, including interest paid, was

$7 .2 billion compared to $6.6 billion last year, an increase of $594 million or 9.0 percent. Ile increase

in individual income and employment tax refunds of

$522 million accounts for 87 .9 percent of the total

money increase, while the inctrasc in corporation refunds of $64 million accounts for 10.8 percent.

Type of tax

1964

Internal revenue refunds, including interest

(For refunds by region and district, see table 5. p. 86)

Total refunds of internal revenue I t--------- --------

C"o"'I" income I .

. ` ------------------- _ ------- -------

. . . Individual income and employment far., Intel ------------- : . ---

"' oth :'in" , I P..':Pt:`mndt .11"dM~

URailroad y mp .ti,annent n s . . . ---------------------------------------

no to ment I urance . -----------------------------------

Est latirxax~----------------------------------------------------- Gif to ~ ---------- --------------------------------------

Excise taxes, total----------------------------------------- : : :: : :

Alcohol

Tob-f.s., ---------------------- Manufacturars'and retailers'-is o

Gasoline used on forms. ---------------------------------

Gasoline, nbigh . .y . .. ------------------------- ----

Other. no

All other excite to ------------------------------------------------- 1 ... I ----------------------------- ---------

0 CHAPTER TW O

Of the total amount of refunds paid (principal and

interest) this year, individual income and employment

tax refunds account for 84 .5 percent, and individual

excessive prepayments alone account for 81 .7 percent.

Corporation refunds account for

.

12 .1 percent. ,

Refunds of all classes of tax average $171 .16 or $8 .52

more per refund than in 1963

.

Gasoline tax refunds to farmers, transi.

I s . y.stems, and

users of nonhighway vehicles, on which interest is not

paid, total $125 .6 million compared to $125.7 million

last year.

INTEREST ON REFUNDS.-Total interest paid on refunds during the current year was $88.5 million, an

increase of $14.6 million or 19 .7 percent. Interest paid

on corporation refunds rose $13 .0 million or 89 .4 percent

of the increase . However, this increase is distorted due

to an unusually large amount of interest, $11 .7 million,

which was paid to one corporation in the Detroit District this year .

The following table compares refunds in the past 2

years, by type of t=

Number

IKE

42,097,79 5

40, 61131: 4746~'

39,631 946:9I 68

352

48

34.981

5,935

65

7

1,363,978

9 016

1,331','171 0'

1,305 955

24 :400

2,35 5

21,11 1

Wised . b.. . no ,

Figures been reduced to reflect reimbursements from the Federal Old-age and SIrvi-s and Federal Disability Insurance Trust Fund-ni to - from the Highway T .. I It= -0 In 1964 and $139 .42.1,000 in 195 3 Fund gitto $126 637 000 In 1964 and $126,319.600 in 1963 ; and from the Une ;l.ym . rust F~nd iinounlinj to $4 291,000 in 1964 and $3 097,000 In 1963 . .

'Net of 64,870 undeliverable checJ6 totaling $3,636,0100 1; 1964 and 51,i62

40.652,377

11 301 139 , 48 :670

38,175 964 949 :96

1025

5,947

3

11392,77416

9 047

1, 36

-

41~'6113

1.339,275

22 605 2:81 3

17,857

Amount refunded (principal and interest-thousand dollars)

19"

7,203,078

868 129 6,088:691

5 986 585

'196:93

3879

4,710

24 733

220'172996

78 907

1 4:075

29, 109

Z03 14

2 :122 1:473

8,605

19 0

6,609,44 2

M 098

5, 566:797

5 353 399 '209 :87 7

3,421102

21 080

1

2.11:

01770

75 636

4'122

31 :087

3:

122 0'1'6 5,355

5,226

Amount of interest Included (thousand dollars)

1964

88,502

'549:887

801

10 0611

14:629

104

2 6936 5

.056

28

135

----

55 _

893

1963

73,93 1

46,864 24,33 1

6 418

17 :82 9

1

33

21093

1 51 92

4

9

w1

97

344

un f of, ' .

I Wit re,12 In 1.963~ .checks to :',

In ,7,9~ :r

of mptions Includens drawbacks and stamp rode .

lncluqes narcetics, silver, wagering (excise and stamps), capital stock, and hor a.x so

a, 'I thantax5flDe! n

65.2 63.7

Individual

and

fiduciary

100.1

Receipt and Processing of Returns

and Related Documents

NUMBER OF RETURNS FILED

Millions

6.1 6. 1

IV 1.0 1., 1.3

11111111101=1

-

4 .7 4 .6

Dacia. Partner. Corpora. Employ. Excise and

rations of ship tion hant another.

estimate d

to .

(Imfillclu .1)

1964 Total, 1963

TAX RETURNS FILE D

For the first time in history, the total number of tax

returns filed by taxpayers in I year exceeded 100 milJion ; the 100 .1 million returns of all types filed in 1964

represent an increase of 2 .2 Million returns Or 2 .3 percent over 1963 . All regions showed an increase ranging from 0 .4 percent in the New York Region to 5 .0

percent in the Southeast Region . Individual income

tax returns traditionally comprise nearly two-thirds of

all tax returns received, consequently their percentage

of change from a prior year tends to dominate the

change for all returns filed . All regions showed increases in the number of individual income tax returns

which increased nationally 2 .3 Percent ; Forms 1040 increased by 2 .0 million, 4 .5 percent, while Forms 1040A

decreased by 600,000, 3 .2 percent . Corporation Declarations of Estimated Income Tax, Forms 1120ES,

nearly doubled between 1963 and 1964. This is a direct

r sult of a change in filing dates under the Revenue Act

of 1964 (Public Law 88-272) effective March 5, 1964,

which requires four returns a year beginning with the

fourth month of the taxable year . Formerly only two

returns were required after the ninth and twelfth

month. A comparison of

.

the number of returns filed

in 1964 and 1963 follows :

Number of returns filed, by principal type OF turn

(Flitu-Inth-ard,. F.,dnI .Ilx,,apt.bI .6,p .87j

Type of return

100.066 97.834

72,56D

1964 1963

Grand total . ... .. . . . .. . .. .... . . . . .. . .. . . . . . . . . .

Income tax, ... ..... .. . . . . . . . . . . . . . . . . .

Individual and fiduciary. total. .. . . . . . . . . . . . . . . . . . .

Inifividu.1-cilliens and resident aliens, total-_

For,, 1110 -------_------------------- Forms 040A ---------------- -----

All other individual end fiduciary. -------- _ .-

D.11 thin. of estimated I., tral . . ...... ... . . . .

Individual . . . . _ . . . . . . .. .. .. . .... .. .

Corporation --------------- -----------------

Partnership . . . . . . . . . . . . . . . . .. . ........... .... . . .

Corporation . ---------------------_---

other .... . . . . . . . . . . --------- . .. . ..

Employment tax . total. . . . . . . . .

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

Employets'Form 941 . . . . . . . . . . . . --------------- Employers' Form 394423~.1'1'1,'u10u"d cl .*rmi it I irm or ..

HT11"N'driell'ro.'mort, Forms C7-1. CT-2_ Unemployment insurance, For . 940 . . . . . . . . . . .

4'. . tax . . . . .. . _ . . . . . . . . . . . . . . . _ .

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

Glittax_ ------ . . . . . . . . . . . -------

Excise tax, total. . . . . . . . . . . . .

. . . . . . . __ . . . . .. .. ..

Occupational ta-. . . . . . . . . . . . . . . . . . . . . . . . .. ::::

Form 720 (retailers, manufacturers, etc.

Alcohol . ..... .. . . . . . . . .. . . . . . . . . . . . . . : : : :~ . . . ...

T

.I

.cco -_---------- . . . . . . . . . __ ------

Other_. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. ..

Revised .

74,193

65,154

K201

41,131 17.665

953

6, ]Do

6,077

27

984 1 .31 1

584

21,75 3

15,331 4,,11

58

1, 3121

87

10 7

3 .925

1 :12'a '7

2311 281

63,679

62,779

44,117 18.252

6,100

6'081 6

12~7

2

21,140

14,983

4,1 1

639

22

1,298

179

00

3,954

17 2' :278

25

12

36 4

INFORMATION RETURNS

More than 330 million information returns were filed

with Internal Revenue Service field offices during the

year. Approximately two-thirds were employers' statemerits of wages paid and tax withheld, Forms W-2, ineluding both the copies attached by employees to thei r

10 I I
ANNUAL REPORT 9 CHAPTER THRE E

Austin Regional Service Center was occupied in 1964 and began servicing the 9 district offices comprising the southwest Region.

income tax returns and copies filed by employers. Information returns concerned with payments of divi.

dends and interest, Forms 1099, totaled 111 million and

Forms 1087, Ownership Certificates, totaled 3 million.

AUTOMATIC DATA PROCESSIN G

Effective January 1, 1964, as planned, two more

regions began processing business returns under the

master file concept . With new service centers Imated

at Austin, Tex., and Cincinnati, Ohio serving the

Southwest and Central Regions, respectively, the expartsion of the Business Master File was accomplished

without major problems . At the end of the year, the

Business Master Fflc contained over 23 million taxpayer entities, or accounts, an increase of 95 percent

since July 1, 1963 .

The Kansas City, Lawrence, and Ogden Service

Centers will begin processing business tax returns for

the Midwest, Northeast, New York, and Western Regions on January 1, 1965 under the ADP master file

concept ; preparation for this started on January 1, 1964.

Although these service centers have been using electronic equipment for several years, they are referred to

hemasnon-ADP . The essential difference is that under

ADP, each taxpaying entity has a consolidated, permanent account established on a master file for the purpose of insuring that : (1) the final settlement of a

tax for a particular tax period takes into consideration

all possible liabilities or credits, and (2) all returns have

been filed for which the taxpayer is responsible. Master files were not set up in non-ADP service centers .

In the interest of economy the Lawrence Scr-vice

Center will process returns for both the Northeast and

New York Regions. In 1965, all seven IRS se"ice

centers will be processing business returns, and theestablishment of a nationwide Business Master File will be

complete.

The Chamblee Service Center was in its third year

of processing business returns for the Southeast Region,

and in its second year of processing individual returns.

At the end of the year the Individual Master File contained 8 .4 million taxpayer accounts . The Philadelphia Service Center was in its second year of business

returns, and will begin processing individual returns

fol- the Mid-Atlantic Region on January 1, 1965 . This

is in keeping with the modified implementation schedule which provides for 2 years experience with business returns before a region starts on the large volume

of individual returns.

In the specific areas of ADP processing, systems

specifications, computer programs, and procedural instructions were revised and updated to improve operations and to incorporate legislative changes . Significant savings in computer processing time were realized by splitting the Individual Master File into active

and inactive accounts for each weekly posting cycle .

The necessary systems redesign and computer reprograming is being completed so that this principle can

be applied to the Business Master File in 1965. Preparations are nearing completion for a test to be conducted involving the use of government telephone lines

for the transmission of master file input and output

data between the National Computer Center at Martinsburg, W. Va ., and the service centers . If this test

proves successful, when installed this process will eliminate numerous shipments of magnetic tape .

Present plans call for installation of a microfilm

reader and printer system during 1965 on a test basis

in the Southeast Region . This system will materially

streamline operations by replacing the paper printouts

of the voluminous document indexes and taxpayer

registers required . For more information and pictures,

see pages 37 and 38.

Substantial progress is being made towards the

attainment of one more major objective of ADP, information document validation. Tests are continuing in

the matching of interest, dividend, and wage payments

reported on information documents with those reported

on the individual returns of the recipients. Determination of the scope of the program as well as the

RECEIPT AND PROCESSING OF RETURNS AND RELATED DOCUMENT S

method of follow-up will be made after evaluation of

the tests .

As reported last year, the establishment of the IRS

Data Center in Detroit has been approved . Work programs are being defined and operating plans developed.

Negotiations with General Services Administration are

under way for acquiring a specific site in Detroit for

this center which is scheduled to be operational in mid1966 to perform all of the Service's data processing

functions not directly related to the processing of rcturns and documents .

SERVICE CENTER FUNCTION S

During the year, the three non~ADP centers, and the

ADP center at Chamblee, Ga ., processed 63 .9 million

income tax returns filed by individuals, an increase of

6.4 million, or 11 .2 percent, over the preceding year.

Of these returns, 53 .8 million were 1963 tax year rcturns filed during the 1964 filing period, and 10 .1 million were 1962 tax year returns filed during the 1963

filing period but processed after June 30 . The returns processed during the January to June period of

this year represent 84.5 percent of the 1963 tax year

returns filed, compared with last year's processed rate

during the same period of 78 .9 percent of the 1962 tax

year returns filed . This year's increase is due to sevcral significant factors : (1) the 2ccelcrated returns processing program in the non-ADP centers dur,

ing the last half of the fiscal year which permitted

them to process an additional 35 million returns

normally processed after June 30 ;' (2) increased efficiency in the Chamblee Service Center, which is in

its second year of automatic processing of individual

income tax returns ; and (3) the delay in the returns

processing program during the last half of fiscal year

1963, which resulted in carrying over 10.1 million returns for processing in the fint half of fiscal year 1964,

compared with 8 .4 million carried over into the first

half of fiscal year 1963 . In addition to the individual

income tax returns programs, the service centers processed approximately 5 .0 million declarations of estimated income tax.

Status

The four ADP service centers processed over 6 .0 million business returns, or 29.9 percent of the number

filed, compared with approximately 3.0 million, or 15.3

percent of the total filed last year . In cobjunction with

the business returns operations, the centers processed

2 .2 million additional documents to record such actions

as payments on account, name and address changes,

and audit and collection adjustments . Included in the

above are full fiscal year 1964 data for Chamblee and

Philadelphia, and data for the last half of the fiscal year

for Austin and Cincinnati .

This is the last full fiscal year in which the non~

ADP centers will perform the mailing and delinquency

check operations for the employers' returns, Forms 940

and 941, for the district offices which they service .

In January 1964, these operations for the Southwest

and Central Regions were shifted from the Kansas City

and Ogden Service Centers to the two new ADP centers at Austin, Tex., and Cincinnati, Ohio, respectively, when these centers assumed all processing, accounting, mailing and delinquency check responsibilities for

business returns filed in their regions. The transfer

of the mailing and delinquency check operations from

non-ADP to ADP will be completed in January 1965,

when the converted ADP centers at Kansas City, Lawrence, and Ogden will assume the responsibility for

processing business returns filed by taxpayers in the

regions which they will service.

CARRYBACK ALLOWANCES

The number of applications for tentative carryback

allowances increased 1 .0 percent during 1964 . The total number of adjustments was down slightly, 255 or

0 .4 percent, while the amount of the adjustments was

down by 6 .4 percent from last year.

The number of applications pending at the end of

the year was 14 .0 percent larger than at the beginning .

The following table compares data for the last 2

years :

Receipt and disposal of tentative carryback applications

------------------- -------------- Applications adjusted, total . . . . -----------------------------------

AI'Dwed .,--------------------------------------------------

Diluills .ad_------------------- ---------------------

Pirdirl June 30 ------------------- ---------------- _ -----------

1964

r.-Not available,

Numbe r

,7

..

.

:370

70,369

8.158

1963

1964

A ...rt(th . ... nd dollars)

1010:663

70 .62 4

7,157

Claimed

1963

'1 : "' 541 .7

535,42 1

-----------

------- 481-H2

4 13

5658 :545

572,65 1

ii

027

1964

Adjusted

1963

-------------

506 450

29:9411

-------------

540 918

3Z773

12 13
4

Enforcement Activities "

GENERAL

To preserve and strengthen the American selfassessment system and promote the voluntary compli~

ance basic to such a system, the Service expends a substantial portion of its resources on enforcement activitics. These activities include correcting errors in tax

liability on returns voluntarily filed, securing delinquent

returns, collecting delinquent accounts, investigating

evidence or allegation of fraud, and enforcing the laws

relating to alcohol and tobacco products and firearrills .

The Service also administers a taxpayer appeals system,

processes legal cases involving criminal prosecution and

civil litigation, and conducts a Federal-Statc, Coopera .

tive Exchange Program .

There were significant advances in enforcement work

this year. One of the most important was the effect

of automatic data processing on the mathematical verification of returns, and the collection of past-due taxes .

Also, through the use of electronic equipment, improverincrit has been made in the procedures for identifying filers of more than one tax return for the same

period. Another of this year's outstanding achievements was attained in the examination program where

the examination of returns resulted in recommendations

of $2.55 billion in additional tax and penalties an

amount significantly higher than ever before achieved.

MATHEMATICAL VERIFICATION OF INDIVIDUAL

INCOME TAX RETURN S

While mathematical verification has been performed

for many years under non-ADP procedures, it assumes,

greater significance under ADP because of the increased

extent of verification performed as a necessary part of

the mechanized processing of returns . This is apparent in the increased yield from the one ADP servIle.

ice center performing mathemadcal verification of individual income tax returns-Charriblee Service Center.

During the year, 63 .4 million individual income tax

returns filed on Forms 1040 and 1040A were mathematically verified, an increase of 5.9 million, or 10.3

percent, over last year. This increase is due to (1) an

increase in returns filed by individuals, (2) the accelerated returns processing programs in the non-ADP

centers, and in the Chamblee Service Center, and (3)

the number of 1962 tax year returns carried over from

the 1963 filing period for processing in 1964 .

The number of errors disclosed by mathematical

venhcation numbered 2 .6 million, an increase of 6 .1

percent over last year . Of the total number, 64 .4 percent represent errors resulting in additional revenue,

while the remainder represent errors resulting in &

creased revenue. The benefit accruing to the Government from mathematical verification of returns is the

net yield, or the difference between the amounts of

increased and decreased revenue. The table below

shows the effect of mathematical verification for 1963

and 1964 .

The rise in the amount of net yield reflected for

1964 is attributed to (1) the more comprehensive

mathematical verification given individual returns

under automatic data processing, and the increase in

the number of returns processed by the data processing

center at Chamblee, Georgia, during the last half of

1964, and (2) an increase of more than $4, or 4 .9

percent, in the average increase error, while the average

amount of decrease remained the same .

NATIONAL IDENTITY FIL E

With the establishment of the nationwide master file

of individual income taxpayers proceeding according

Individual income tax retums mathematically verifie d

Noreb 14111:; .11 ;:1, ,, ;n o n .. .

.......... n d

:-:

hich

=:h

Returns with increase :

~_11- d

Number -------------- ---------- -------- ------------------ thousands.-

---------------------------------- _ ---thousand done,,. .

R .N., with

no be, . .. ---------------------- -----------------_-- AhmissedAmou I—— --- ------------ _ ---------- _ -------- . .-thousand dollar-

--- --------------------- ----- .--thousand dollars--

-fill0i -------_-----------------_---dollar,--

14

Total Form 1040 Form 1040 A

1964 19U 1 1953

15,27

669

41 4

34

,

346

254

21,794

12.552

.92

1964 [ 1963

63 : 414

2 Still

1,666

165,501

922

72,619

92. lK 2

1.46

57 492

2: 439

1 .564

148,113

876

69,419

78,694

1 .37

46 610

1 : 8u

127 73 2"4

666

51,355

76.118

1.63

1963

42 717

1 : 771

1131: 7167V

621

47,625

66114 2

. 57

16, Boa

706

3 8, 450

029

256

21,283

16,745 1 1

.00 1

ENFORCEMENT ACTIVITIE S

to a schedule of gradual extension on a regional basis

to best assure its success, an interim computer procedure

has been installed to identify filers of more than one

individual income tax return for the same tax period .

The magnetic tape files are computer-searched to identify multiple filers, and all cases of duplication are extracted for follow-up by the appropriate enforcement

personnel. This eliminates the time-consuming procedure under which district office index files are manually searched to identify multiple refund cases .

The majority of the duplicates resulting from the

search of returns for the tax year 1962 did not represent

duplicate filing but involved incorrect identification by

the taxpayer . Follow-up on the selected potential yield

cases resulted in a total of over $2 million in additional

assessments and refunds canceled . Aside from the additional revenue yield, the National Identity File will

be of substantial assistance in the reduction of processing costs through the purification of taxpayer accounts .

OVERPAYMENTS OFFSET PRIOR TO REFUN D

During 1964, $11 .8 million were offset, or applied,

through automatic computer analysis, to taxpayers' outstanding liabilities from amounts that would otherwise

have been refunded. These offsets resulted from the

processing of business returns by computer for the

Southeast and Mid-Adantic Regions and individual income tax returns for the Southeast Region . This function is made possible through the ADP system of establishing a consolidated account for each taxpaying entity

on the Master File .

VOLUNTARY DISCLOSURE S

As a result of ADP publicity, 973 taxpayers have

voluntarily disclosed $4.7 million in delinquent taxes

since January 1962 . In each case the taxpayer specifically mentioned that the additional income applied

to years gone by and was bcing declared in anticipation

of being caught through the implementation of Lhe

ADP system . However . this is only a part of the salu.

tary effect on taxpayer compliance. There is intangible

but strong evidence that a significant number of tax~

payers have been unobtrusively getting their tax affairs

in order either by including income formerly concealed

or by filing returns for the first time .

EXAMINATION PROGRA M

GENERAL.-The Service is continuing its efforts to

reduce the time lag between the date returns are filed

and the date the examinations of the returns are completed . In this connection an expanded training program together with increased emphasis upon the

examination of Selected simple business returns in office

audit branches insured accelerated coverage of the less

complex cases and at the same time increased the time

experienced agents devoted to the examination of the

more complex corporate cases .

The examination program for exempt organizations

was further expanded during the year resulting in a

42 .2 percent increase in the number of examinations

of returns of exempt organizations .

CLASSIFICATION AND SELECTION OF RETURNS FOR Ex.

AMINATION .-The identification of those returns mos t

NUMBER OF TAX RETURNS EXAMINED AND ADDITIONAL TAX AND PENALTIES RECOMMENDE D

Number (Thousands) Amount (Millions ofdollars)

i4 620

Totals

:9' :3 r~~

1

3,84 9

Corporation 173

148

Estate and H 3 1

gift

Excise and 8 0

employment

3 0

11 ; 5

I Includes exempt organization returns

2,550

16 0

220

1 328

302

87

U 62

15
ANNUAL REPORT as CHAPTER FOU R

in need of examination is a cornerstone of sound cnforcement . Service personnel classify and select for

audit those returns which exhibit error-indicating

characteristics. Knowledge of what characteristics are

indicators of error is derived from examination expe,

rience and scientific sampling.

Through application of Selection criteria and techniqucs, examination coverage is provided for all types

and classes of returns . Determinations of coverage

among the returns are based on recurring studies and

analyses . Out of 66.7 million individual, corporation,

estate, and gift tax returns filed, 25.3 million were

classified .

Under the ADP system, computer classification of

returns is being utilized in all regions where the system

is operative. Audit characteristics previously used in

manual classification, as well as additional criteria, have

been programmed . ADP processes make possible the

identification of returns in need of examination by

subjecting returns to analysis with speed and accuracy .

NUMBER OF RETURNS ExAmINED.-During the year

3 .6 million returns were examined, a decrease of 6 percent from last year . The decrease occurred in individual and fiduciary returns while examinations of all

other types of returns increased . Returns audited by

field audit techniques increased 1,262, while offi6e audit

examinations decreased 230,359. The decline in office

audit examinations is consistent with a planned cutback

from the previous year and was designed to provide a

more balanced program by shifting emphasis from the

examination of small nonbusiness returns to the audit

of Small business returns and of noribusiness returns

with ad

I

usted gross income over $10,000.

The average time required to complete examinations

continued to rise, reflecting a continuation of a trend

toward more thorough examinations embodying quality audit principles .

The following table shows the number of returns

examined by type of return :

Number of tax returns examined

IFigum in thomound.il

lym .fntum

T I Field audit

-

Office audit

1964 1963 1964 1963 1964 1963

G... d toul_ --------------- ---------------------------------------- 3,620 3,949 762 76D 2.958 3 .M

Income tax, total. ------------------------------------- --------------------- 3,409 644 -586 -598 2,923 3,056

Cor ration .- --------------------------------

r d rid :: ::" : :::

163 141 161 140

3 236 3 495 4 1 441

2 1

l .d ,ldu.1 an nien_

Exempt organization ------ ---------------

, , 1 7

10 7 0

2. ir 3 05 5 ,

Estate

and gift tax-- ------------------------------------------------ ------- 3_1 30 29 2 1

Entse 3

.

nd employment ta- --------------------------------- ---------------

5

180 175 147 1, 33 30

Revisod. Formerly Included exempt organizations.

Less than 50D.

ADDITIONAL TAX AND PENALTIES RECOAIMENDED~

Examination of returns resulted in recommendations of

$2 .55 billion in additional tax and penalties . This

amount represents an increase of $390 million over last

year, and is the highest amount achieved in any single

year. An increase was realized in every tax area without exception. Corporation examinations produced 27

percent more additional tax and penalties than last

year, and individual and fiduciary deficiencies were up

9 percent.

Average additional tax and penalties recommended

per examined return rose 25 percent, from $561 in

1963 to $704 in 1964 . In the area of individual and

fiduciary returns, average additional tax and penalties

recommended per return increased 18 percent and, in

the corporation area, 9 percent .

CLAIMS FOR REFUND.-District audit divisions compicted action on 375,288 claims for refund of taxes .

Ile total amount claimed was $495 million of which

$177 million was allowed and $318 million disallowed.

In addition, 4,397 claims with an amount claimed of

$150 million were unagreed and forwarded to appellate

divisions for further consideration .

Of the total number of claims, 82.6 percent involved

individual and fiduciary tax returns . Of the total

amount claimed, 72 .3 percent was from corporation

returns and 19.4 percent from individual and fiduciary.

The following table shows the number and amounts

involved.

ENFORCEMENT ACTIVITIES

Claims for refund disposed of by district audit divisions, fiscal years, 1963 and 1964

Closed by audit divisions

Amount (thousand dollars)

cl ." .11 is. Number

Claimed by taxpayer All. .. d Disallowed

1964 1963 1964 1963 1964 1963 1964 1963

Total ---------------_---- ---------------- 375,298 348,921 495,077 1 .100,522 177.165 152,082 317,911 948.44 1

Individual income----------------- ---------------- 311 636 290,021 115, D83 1 04,226 79 845 72 111 35 239 32 21 2

Corporation income_ ----------------------------- 4

:

Ji 256

2,

922

9

331,169 7 4, 553 79:028 54 :551 252 :1:0 730:002

Ept Gift. ------- ------------------------ _ ------ . .. . .. . . . . . . . . . . . . . . .. .... ...... .... -

-------

1,60 1 ~643

243 249

22,691 7 1

6 1

693

872 1 1

: 54 7,478 16,

058 2545 288

.21 4

617 771

----- --- ------

Uzi------------

-------

7 13 1 , 2 1 118 179 211 l 965 6 12 D43 173.262

......

Employment ------------ --------- -------

: 5

76

, : 2:7f ,:

'3 1 2 :

254 28 726 91d)

Photested-ftemil-ml to appellate di,l,iAmount (thliumed dollars)

Cie. oftax Number

Claimed by taxpayer

Recommended by audit division,

Allowed Disallowe d

1964 1963 1964 1963 1964 1963 1964

1 -

Total------------ -- - - - -

__ -

4 397 4 2

ip~~r ao~"

149,5DI 119,468 3,512 29 89.906

989

Individual income--- -------- - -------------- 1,981 2.081

10.042 _11,307

566

1

'a476 10,243culmixt. . i - -------------------- 9

--------

1,201 80Z 134,539 101,378

.

2,722 f2,37. 131. 817 73, WO

_ --- __ Estate------------- --------- :

-

G

ini-- -------------------------------------------

90 90

38 53

3,035 3,39 1 0

263 144

. .

. .

. . 9 ,

134

14

2,901 3,298

249 144

E

Emote

744 34 15L 0 4

3 55

I

.388 1,969

234 380

4

32

1,

344 1:948

202 373

OVERASSESSMENTS OF TAX EXCLUSIVE OF CLAIMS FOR

REFuND.-District audit personnel determined that a

total of $143 million in taxes had been overassessed

against taxpayers exclusive of claims for refund. Corporation income tax accounted for 56 .7 percent of the

overassessments . The following table shows the

amount of overassessments recommended by tax area :

Overassessmignts of tax exclusive of claims for refun d

Type of tax

Total.. --------------- ------ ------------

Individual and fiduciary income- . .. . ---------------

Corporation income. -------- --------------------

Estate. --- ------------- -----------------------

Gif" : -------------------: ----------

E-c ` ---------- --------- --------- ------ --- Employel ----------------------------

Amount recommended

(11musami delta.)

196 4

142,564

50,510

80,834

9,73 1

327

866

296

1963

163, (00

11"55 7,3392

1,507

026

392

APPEALS

GENERAL

The appeals procedure of the Service provides the

taxpayer an . opportunity to resolve his tax controversy

without litigation, on a basis which is fair and impartial to both the government and the taxpayer.

The appeals function is decentralized and operates

at two organizational levels, the district and the region .

If a taxpayer disagrees with the findings of the examining officer he may request an informal conference

in the audit division at the district level . In the event

an agreement is not reached in the distri~t audit division, the next level of appeal is the appellate division

which is a part of the regional office . If an agreement

cannot be reached at the appellate division level the

taxpayer may file an appeal with the Tax Court of the

United States . Conference opportunities are available

fit the appellate division even after a case has been

docketed in the Tax Court .

The jurisdiction of both the audit division and the

appellate division extends to disagreements involving

overassessments as well as deficiencies, and to all internal revenue taxes except alcohol, tobacco, firearms, narcotics, and wagering taxes.

SUMMARY OF OPERATION S

The number of case referrals from audit divisions

was 17 .0 percent higher than in 1963. However, the

increase in appeals was substantially offset by a 14 .1

percent rise in the number of case dispositions, result.

ing principally from a higher level of productivity .

While the number of cases on hand on June 30, 1964 .

16 17
ANNUAL REPORT as CHAPTER FOU R

Agreed

APPEALS (income, Profits, Estate, and Gift Tax Cases)

Method of Disposal

BEFORE ISSUANCE OF STATUTORY NOTICE

111,849

1" assegil ;,,r,,d ircirl; 459

o n

claim rejection 53 7

Agreed

Defaulted

Agree d

Dismissed

or defaulted

STATUTORY NOTICE OUTSTANDIN G

PETITIONED TO TAX COURT

5,002

4,40 7

328

0

237 H

935

Tried

on merits 93 7

23,031

1964

was 11 .8 percent above a year ago the inventory rem2 ins in a current condition . The continued handling

of

the larger case workload on a current basis is

planned for by anticipated further increases in productivity and nominal staffing adjustments in those areas

with the heaviest workloads.

INCOME, PROFITS, ESTATE, AND GIFT TAXES

CASES NOT BEFORE THE TAx COURT (PRE-90-DA Y

CASES) .-If no agreement is reached with the taxpayer

at the district level, the district director issues a preliminary notice, otherwise referred to as "30-da I

,

Y

etter,

together with a copy of the examining officer's report,

informing the taxpayer of the proposed adjustments

and advising him of his privilege to file a formal protest and request that the case be transferred to the

appellate division . These cases are referred to by the

appellate division as "prc-90-day cases ." The appellate

division's activities during 1963 and 1964 in the process18

3

Totals 1963

19,76 0

ing of these C2SCS is summarized below. (For additional information, see table 15, page 94 . )

Appellate Division receipts and dispositions of protested

income, profits, estate, and gift fax cases flat to iss n

of statutory notice of deficiency (prig-90-clay carses) ." cc

Status

I -_----------------------- ----------

------------------------------- --------------

Disposed of, total----------------------------------------

My agreement--------- ----------------------------- ring-d .-ausersimmant .nd far. njention ----------- By issuance of statutory notwes-trinsferred to 90--day

in-IM----------- -------------------------------

Pending June 30 .-, --------------------------------------

Number of was

[Ell

12,653 21,494

18,616

14,189

459

1963

to. 732 17,77 4

-

15,953

11,94 9

537

3,968 3,46 7

15,531 12,653

The increase in the number of pre-90-day cases on

hand compared with a year ago reflects the effect of the

higher number of referrals from audit divisions.

ENFORCEMENT ACTIVITIE S

CASES NOT BEFORE THE TAx COURT (90-DAY

CASES) .-If a case is not settled at the district level and

no formal protest is filed with the appellate division a

statutory notice of deficiency is issued by the district

director . If a protest is filed with the appellate division

but no settlement is reached during prc-90-day consideration, a statutory notice of deficiency is issued by

the appellate division. This notice is commonly referred to as a "90-day letter," because the taxpayer is

allowed 90 days from the date of the letter to petition the

Tax Court of the United States . A case which is pending in the appellate division during this period is called

a 90-day case . 'The following table shows the results

of processing these cases in the appellate division . (Ad .

ditional details are shown in table 16, p. 94. )

Appellate Division receipts and dispositions of protested

income, profits, estate, and Sift tax cases in which statutory

notices of deficiency were outstanding (90-day cases) .

Statu s

Pind

R ---------- -------------------------------

0.

irivadjulytotaI ------------------------------- ---------- l

Statutory fortices issued by Appellate Dhilsion I . . . . . . .. . SI=Vices issued .day by di,ti,t dkectonimd revenni

Period . ------------------------------

Disposed of, total----------------------------------------

By agreement

ptys, do---- ---------------------------------- Ult_--------------- ----------------

Byy fps

11 in

to the Tax C-t-tramarined to do, too

--------------------------------------------

P.Rdingiune3if--------------------------- -------------

Numb., of can,

1964

1 159 4

-

:377

3,785

592

4,146

953

1,165

2,028

I, 3go

1963

1 ' 073

01 9

3,348

67 1

31933

-an 995

2,14D

1,15 9

DieDill.r.- from Procedingtable isuu:ed bircases being combined or split for purpose of issuing the statutory refits, Cases in transit, 41~

Although the total number of 90-day case disposals

by appellate division was higher than last year, a smaller

number of such disposals involved cases petitioned to the

Tax Court .

CASES PETITIONED TO THE TAx COURT (DOCKETED

CASES) .-In a case involving income, profits, estate, or

gift taxes, a taxpayer may file a petition with the Tax

Court requesting a hearing for a redetermination of

the tax liability asserted by the Commissioner in the

statutory notice. Tle Tax Court of the United States

is an independent agency of the Government

.

t and has

no connection with the Internal Revenue SCTvLCC.

After a case has been docketed in the Tax Court, a

taxpayer May still discuss the possibilities of settling his

case with the Service regardless of whether he has

previously availed himself of conference opportunities

with the audit division of the district office, or with

the appellate division at the regional level . Settlement

negotiations in docketed cases may be conducted by

the appellate division at any Lime before the case is

called for trial by the Tax Court. Regional Counsel

may also be represented since settlement of a docketed

case requires his concurrence . The table which follows

shows the processing of docketed cases . (For 2dditional information see table 17, p. 95 . )

Appellate Division receipts and dispositions of Income

profits estate, and sift tax cases petitioned to the Tax

Court idocketed cases) .

status

Pendi 0,11 ------------------------------------------

Raten'slo1 j, bitax ------------------------------------------

Pentin s riled in response toDiulilt di-tor.'rit.t.try if.. . ...

I ------------- Appellate Dirrimn'. .bobitory noticas ..... -------

Disposed of, totaL .--------------------------------

fly 11%,1:t.11d

0, tier b`y'r*h*.T.T_& i i;i -------- Tried before the Tax Court on the .,III---- I ----------

Pending June 30 ------------------------------------------

Number of tarxi s

E~]

8,631 5,61 4

3,767 1,947

6, 265

15.002

328 93 5

7 .9110

1963

8,965 5,24 7

3,303 1,944

LI-11

4,40 7

237 937

8,631

..2ifterence from number shown a petitioned In preceding table is caused u by abstuding district directors' statutory notion considered by Appellate in 90-day

x, causes I. transit at.

Din...

oc.morh tbW number shown in the Discarding tables and In table 19, p. 95,

Is due to cutDg rates in respectin reporting sinderm.

With the number- of docketed case disposals cxceeding receipts for the fifth consecutive year, the

num her of such cases on hand June 30, 1964, was lower

than in any year since 1956.

EXCISE AND EMPLOYMENT TAXES

The number of excise and. employment tax cases

on hand June 30, 1964, was 1,154 or 289 cases above

the same date of last year, reflecting the effect of the

higher number of referrals from audit divisions .

There were 1,750 case recepits and 1,461 disposals.

CLOSING AGREEMENT CASE S

During the year, 177 final closing agreement cases

were received and 168 processed to a conclusion. Ile

number of cases on hand June 30, 1964, was 16. (Rulings on proposed closing agreements involving prospective transactions are discussed on p . 5 .)

OVERASSESSMENTS REPORTED TO JOINT

COMMITTE E

Section 6405 of the Internal Revenue Code of 1954

requires reports to the Joint Committee on Internal

Revenue Taxation of all refunds and credits of income,

war profits, excess profits, estate or gift tax exceedIng $100,000. During the year the number of Such

cases rose from 440 casts totaling $344 .0 million to 512

ca... involving overasscssments of $2965 million.

DELINOUENT RETURNS AND DELINOLIENCY

INVESTIGATION S

During 1964 the Service secured 1 .1 million delinquent returns representing $275 .5 million in unreported

tax, interest, and penalties. Approximately 66,000 of

19
ANNUAL REPORT * CHAPTER FOU R

these returns, representing $57.6 million, were secured

by district audit divisions incidental to the examina~

tion of returns, The remainder were secured through

the establisher] delinquent returns program .

This year more manpower was utilized in the delinquent returns program, one of the major means by

which the Service strives to ensure that all taxpaying

entities satisfy the filing and payment requirements onder the internal revenue laws. As a result of the increased efforts, more than 1 .0 million delinquent returns were secured representing $217 .9 million of unreported tax, including interest and penalties . This

was an increase of 4 .0 percent or 39,000 delinquent returns and $31 .3 million or 16 .8 percent over last year .

In addition, this year 1 .77 million delinquency investigations were conducted, an increase of 3 .4 percent over

the record ri~mbcr of 1 .71 million in 1963. These dclinquency investigations result primarily from a check

of records of previously filed returns and constituti!

one of the major methods of detecting nonfilers .

A'nationwidc compliance survey in selected geo .

graphical areas of special tax stamp requirements for

coin-operated amusement and gaming devices was

completed during 1964 in coordination with the De .

partment of Justice drive on organized crime . The

survey resulted in $511,500 in tax and penalties on

9,095 unreported devices.

In the future, the delinquent returns program in .

expected to yield even more rewarding results since

manpower was made available in 1964 for work on

new aspects of the problem of securing delinquent

returns . Already selective studies have been initiated

into the development of returns compliance leads and

investigative techniques . Test compliance surveys were.

conducted in several districts on income, employment,

and selected excise taxes . The experience resulting

from this and similar future efforts is expected to pro,

vide a basis for the design of compliance programs of

national scope as well as guidance for programs directed

to particular local district requirements .

A summary of investigations by special agents

follows :

Tax fraud investigations,I

Type

ruji-ade investigations, total.----------------------------

Pmsecullim recommended . total --------------------- -

Fraud ------------------------------------------

Wagering---------------------------------------

Col-peratinil gaming devices ..-------------------

Misc,llan- - ---------------------------------

Prosecution not recommended, total. . ._ --------------

Preliminary Investigations, total . --------------------------

Fraud and Iniscallan en -------------------------------- Wagering and coh,opented gaming devices . ------------

is "

3,797

2,392

1,032 1 258

3864

1,405

9,846

71 ; 956 M

1963

3,64 8

2,208

994 1 133

3546

1, sal

10,873

If, 765 2,108

The Service continued to participate in the Department of justice drive on organized crime through the

investigation of the tax affairs of major racketeers and

by conducting nationally coordinated and independent

raids on wagering tax law violator establishments .

Raids were made in 284 cities, and resulted in the arrest

of 988 persons, the seizure of 193 automobiles, $665,000

in currency, and considerable gambling equipment.

Among the notorious evaders convicted in 1964 of

criminal tax law violations were : Leo Carlino, New

York ; Anthony Dolasco, Newark ; Benny Magliano,

Baltimore; Anthony Grosso and Sam Mannarino, Pittsburgh ; Fred Mackey, Gary, Ind .; Max Jaben, Kansas

City, Mo. ; and Joseph (Doc) Stacher, Los Angeles .

Ile effectiveness of special agents was increased this

year through the streamlining of training programs and

through the greater use of technical investigative aids,

such as portable reproduction equipment. The increased use of this equipment and the reduction in

training time, together with continued efforts toward

improving manpower utilization, resulted in special

agents devoting approximately 5 percent more time to

direct investigative work than in the preceding year .

Consequently, special agents completed more full-scale

investigations with prosecution recommendations.

TAX FRAUD INVESTIGATIONS

All Intelligence enforcement programs were main .

tained at a high level, with continued progress towards

the objective of ferreting out tax law violations by all

Sir= of society, in all geographical areas and for all

types of taxes. This year significant increases in the

number of full-scale investigations and prosecution rcc~

onamenclations were coupled with a decline in the

number of preliminary investigations . Ile reduction

in preliminary investigations resulted from closer cvaluation of allegations of fraud, thereby achieving more

effective use of investigative manpower .

CASES INVOLVING CRIMINAL PROSECUTION

Total additional taxes and penalties of $113 .6 millio n

were involved in cases received in the Chief Counsel's

Office with recommendations of criminal prosecution .

This reflected a decrease of $8 .4 million from the prior

year .

An analysis of criminal tax cases of all types (other

than wagering-occupational tax cases handled at the

district level) flowing from the Assistant Regional Commissioner, Intelligence, through the Office of the Chief

Counsel and the Department of justice follows :

ENFORCEMENT ACTIVITIE S

Receipt and Disposal of Criminal Cases in Chief Counsel's

office

Status

2,956 2,81 3

2.123

1964 1963

Pending July I ------------------------------------------

Received, total---------- ------------------------- . . . . .. With recommendations for Prosecution_ --------------- With requests for opinion, etc ----------- --------------

Disposed of, total ----------------------------------------

Prosecution n twarr .rind .

Department of at declGiud--------------------------

Ice

P .-timis .

. . . . . ------------

Opinions deleered .------- --------------------

All the, closings------------------------------------

Pending June 30 -------------- --------------------

1,493

-I.377 116

2,311

10664

1,91990 166

2,ID4

1,916954

1,980

.7. .7

1, 4D5 120 227

2,956

tax cases referred 1 Includes cases awaltinA action in Department of Justice exclo Iv of wag ri by Into gence, Division.

n g

A total of 947 income and miscellane iminal

cases, with prosecution recommendationsinsiorvolving

1,265 prospective defendants, were forwarded to the

Department of justice . This was an increase of 10.8

percent in the volume of referrals over the prior year

In 1964, indictments of such cases were down 16.9 per'

cent and the total disposal of cases in those categories

in the district courts decreased 5,1 percent.

In income, excise, and wagering tax court cases,

1,314 defendants pleaded guilty or nolo contendere,

224 were convicted after trial, 81 were acquitted, and

188 were dismissed .

A comparison of indictments and court actions for

the last 2 Years follows :

Results of criminal action in to . Fraud cases

Action

Total

Indictments and informations --------------------- Disposals, total ---------------------- -------------------

chnt~ guilty or note contenders

A -------------------- icted after trial----------------------------------

Mcquitted_ ... .. ...... .. . . . . . . . . . . . . . . . . . . . . .. ... .

ol-prossed or dismissed .- . -------_-----------------

loccome and miscellaneous ca- ,

indictments and lot....tion,

Disposals, total.- .

----------------- ----------------------

----------- ----------

Plea. guilty or nolD contendere . .---------------------

C-iltvi after tri .l . .. ------------------------------- Acquiled

------------------------------- --------

Wagering tax castle

In.dlctmert3 and information, .-- . -------- --------- of posa $, total_ ------- --- -------- ----

Pleagolily or role contenders

--- M

: --------------------

A

cled after trial... . . . . . . .

NcQuitted ----- . . . . . _ . . .

: . . . ------

ol-protaxed of dismissed------------- --

-- ------

-------------

Number of defendant.

1964

1,577 1,807

-

1,314

22481 188

1963

856 1 :596

;-111,

17673 23 0

679 772

-

'121'

480 I s

898 1,035

-

771 1

03

41 12D

817 814

56,

11497

1,039 782

59532

24 11 3

I Includes cases dismined to, the following reasons If of : 19 because of death o

5

F."mi'an'I'laus"I", am, Do""' of serious 111n,,ed.. and 28 because principal de! ,Inclo P load guiltY of had bee, onvic mix

-1 income Ini uIt 1 .1 too d etc, gift. and excise be, than wagering, alcohol . rd firearml; team,

As the result of actions taken against violators of the

laws relating to alcohol, tobacco, and firearms taxes,

a total of 7,195 cases involving 8,198 defendants were

reported to U .S . attorneys for criminal prosecution, an

increase in cases of 1 .9 percent compared to last year.

The number of indictments and disposals for the last

2 years are shown in the following table :

Results of criminal action in alcohol, tobacco, and firearms

case s

Actio n

Indictments and information, --------- ----------- Disposals, total. . . . . . . .. ....

........ -----------------------------

Plea . 8-111Y or .1. contand- Convicted alto, trial . . ----------:::::

: ----------------

Acquitted. . - ------ : : ------

Nol-prossea or dismissed -_----------_--------------

Number .1 defendant.

1964

5,598 5, 646

-

4.108

668 29 572

1963

5,747

-

6,027

4,256

714 369

698

SUMMARY OF ADDITIONAL TAXES FROM

DIRECT ENFORCEMENT

ADDITIONAL TAX FROM DIRECT ENFORCEMENT

(including interest and penalties )

Millions of dollars

F .. audi t

Froon In theocratical

warificsfuran

R4181 1

I`11,d1I!r1Z1

rotor,

as ou

From taxpayer

d .11mi-taccount.

collected

WLJ 235Is

1964

The above chart summarizcs and compares the

amounts of additional taxes resulting from the various

enforcement programs. This year the total amount of

additional taxes, penalties, and interest assessed, almost

all of which is collected, was a record $2.5 billion .

Additional assessments resulting from the examination of tax returns totaled $2 .1 billion, an increase of

$202 .0 million over last year. The assessments represent increases in liability as finally determined in

examined cases closed at all stages of consideration,

including cases closed by district audit divisions and

cases closed after appeals action or court decision .

Since many of the assessments made in fiscal 1964 in20

21 743-871 0-65-3
ANNUAL REPORT as CHAPTER FOU R

volve cases which were examined in a previous fiscal

year, the amount of additional taxes assessed should

not be regarded as a measure of current year audit

activity .

Additional revenue produced by mathematical vcrification of individual income tax returns was up $17.4

million and taxes, penalties, and interest on delinquent

returns secured increased $40.2 million .

The following table shows the additional taxes, penallies, and interest by source :

Tax, penalties, and interest resulting from direct enforcement

(In th-ands of dollars)

Item

2.505,249

2,062,008 1,859,975

1964 196 3

Additional tax, penalties, and interest asoessed, total.

From examination a tax return, . total. .... . . . . .

Income tax, total ..---------- __ ---------

Corpostio-,_,II--------------------

Individual a n P"Mit.ml audit --------------

lifegular .odit---------------------

Estate and gift tax ------ 7 ------- Employment tax (iml .dfirz vnI -

I...

. tax)

------- __

Excise tax . ... . . ........ . -----------

From orno'hint.fical nafficatiom 0 1.. .. tax

rot Ins ------------------------------------

From National Identity File.-------------------

From delinquent returns secured, total ---------

By district collection divisiou. .----------- By district audit divisions-----------------

Claim, disall-d

Total-------------------------------------------

By district audit iVNI0 1 m

I pp.llxtx~i,izmms

Delinquent taxes collecte d

TotaL ---------------------------------- -------

Del account T,u=taxe3 ------ -------

Raised.

1,750,555

2,243,35 6

1,569,849

the year's total to 3.1 million delinquent accounts, 6.5

percent higher than the number issued last year. However, the amount of delinquent tax involved, $1,463

million, was $12 million less than last year . "

In recent years emphasis has been placed on .reducing inventories ; in 1964 special efforts were dire'cled to

this program. Despite the large number'bf new

accounts in June, Which offset much of the inroads

made into inventory levels through the first I I months,

the 1964 inventory totaled 956,000 accounts, an actual

reduction of 12 percent below last year. Moreover,

this represents the second lowest June inventory

reached since 1954. The amount of delinquent taxes

involved in the accounts pending at the Close of the

year aggregated $1,098 million, $57 million more than

last year.

TAXPAYER DELINQUENT ACCOUNTS

Million, of dollars 901,864

123 799

724 :892

268,499

4 17:3'395

165,501

2,260

275,48 0

1157 860

7 :620

445,556

317 911

127:64 5

1,322,170

217~ 7.22

807,568

89 602

672:678

241,647

Q': 3".47

148,113

235,267

. ..

574

11:693

1,080,794

11,:44 13 131

11,282,81 2

I101983,000 9,81 2

TAXPAYER DELINQUENT ACCOUNTS

Increased activity at the Service Centers in June 1964

compared with June 1963 caused new delinquent accounts to reach higher levels during the year than

would have otherwise Occurred. These new accounts,

added to the new accounts issued in July 1963 that

ordinarily would have been issued in June 1963, raised

22

.463

1 a... d 1,475

450 Closed

1,51 0

J"

1964 1963

The Service continued to emphaSiZe and expand the

trust fund tax collection program under which immediate contacts are made to collect withholding and

Similar trust fund taxes from employers and excise tax.

payers who have failed to pay the tax when due, A

total of 114,000 trust fund accounts, 27,000 more than

in 1963, was collected while still in notice status . In

addition, over 10,000 dishonored checks, submitted in

payment of trust fund taxes and amounting to $8 million, were collected.

The delinquent accounts activity (including activity

related to the accelerated collection Of trust fund taxes

ENFORCEMENT ACTIVITIE S

and dishonored checks while in notice status) is shown

in the following table ;

Texpaye r delinquent account s

status

1964 1963

Number (the ... nd,) Amount (thousand dollars)

Issued -------------------

Closed, total -----------------------

Dot of cut' :

--------

Addili . . . I --------- Other disputes I. . .... . . . . . _

Pending June 30, total~___------

Aixeletatul collection of trust fund

RecomdCollected ----------- ..........

3

065

:077

2,537

--------

541

956

205 I

14

1963

-

2 879

2 :967

1: 1964

462 5

449:9181

2 .468

------ 499

9-68

1,030 262 44: 726 375,000

1,098,447

87

397,931

247,192

47 1 :509 1 4: 762 9 6

1 053 035

' 39:965

416,91 6

1,041,14 8

, 327,78S

-189,81 2

Revised.

I Includes dispors .1s due W uncollectiblilty, and ermnaous and duplicate resess . Monte.

I includes collections of dishonored checks.

WORK FLOW IN THE SERVICE AND COURTS

Most of the work of the Service is generated by the

millions of returns filed every year. The time elapsing

between receipt and final disposition of a return may

vary from a few days or weeks for the simplest to severa] years for the most complex, especially when fraud

or appeals and litigation are involved . For this reason, the work of the Service does not flow through a

complete cycle (luring any one year . However, the relafive volume of returns processed at each admirustratIVC

level of the Service and the courts is exemplified by the

workload for any given year. In evaluating the work

flow, it is necessary to recognize that the unit. count

at the point Of receipt and in the audit divisions is on a

return basis while in the appellate divisions, intelligence divisions, and the courts the Work unit is the

case. Cases may involve one Or More returns . Si nce

the major administrative burden is On the processing

of income, estate, and gift tax returns, ecially at

the appellate and court levels, the foil ng tabu- Z

lations (returns filed and internal revenuoewc'ollections

excepted) are confined to these types of returns :

Work How in the Internal Revenue Semice and the courts,

fiscal years 1964 and 196 3

Item

Tax returns filed, total ----------- ---------------

IrnVlr1.1,1Iifnci C.,in me

----- - Estate and gilt - EEmPle xCnoyment. .1-------- ------------- . . . .... ... ... .. . . . . . :: : ::::

Other i;i; ;4 ---------

1964 1963

Return s

100,066,188

65 1 . 411

1:367:400

21,7543 " "' :220

21I :11 7':'67 56 5

INCOME. ESTATE, AND GIFT TAXE S

Number of, F.S~l "to"",

R M11 ad M

divisions----- ----------- ------- Disposal *1 1, ,oil Agreed . paid . or defaulted----- --------------

Civil case s

Total received in appellate divisions . . . --------- _ 011posod at by appellate cilvisions: Agreed, paid,ot defaulted. ------------------- Courts at mig nil jurisdiction : To Co ., ;: Total Politioned to Tax Court. . . ---- ----- Dismissed ------ ------ _ --------: ----- Settled by stipulation------------- ------ Settled big Tax Court deciskm _

D,cid :d Y Tax Court but District a

Total rho and Court of Claims :

filed in district courts and Court of cl.i-------------_--------- _

Settled in district courts and Court of 6im-S., Decided by district courts and Court of Courts, I Clot--------------- -----------------

S.nf:d by courts of PP..11 declue ------------ Favorable to Government,.--------------- Favorable to taxpayers------------------

Modified ... . ---------------------------- Decided by courts of appeals but reviewed by SomSe Supreme Court- ----------------- --------- me Gourt :

ottled bySuprome Court

Fraud cases I

Received for full-scale ir-tifistion In Intelligence division s Disposed "

'~y'intal-ii-g-e-n-c-e-divi-sions :---------------

P-scution recommended. . ------------------ Di3 Prosecution not re .-Mild---------------- Posed of by Office of Chief Counsel : Prosecution notDwarranted, including cars, do 111mid by the a Pro, fin, _ Mont of Justice ---------- .Part

. .. I --- ----------------------------

3.141,191

2,381,058

2, IDS, 13 6

1964

, 97, 833, 78 7

163 679 45 7 6

11:291:

39

1,7~1: 441 21 . 735 7:

3 IS589 ": 1171

3.173,139

2,339,658

2,102,069

Co..,

196 3

21,859

16,766

5 ' 690

34 6

4,947 836749

1,494 89 6

498

520

344

139

37

2,241

1,032 1,165

170 1,91 9

Revised,

I nclud., excise to . cases.

18,326

14,17 9

5 ' 376

266

4,371

1.099

390

1,07

764

486

349

229

78

42

6

7

2,239

994

1.228

228 1,405

23
ANNUAL REPORT 9 CHAPTER FOUR ENFORCEMENT ACTIVITIE S

Amounts of revenue involved at each level of the tax system

fiscal years 1964 and 196 3

[Millions of dollars)

1964 1963

-

internal ..... be caliextims, total --------------------------

-

Individual income taxes, total . -------------------------

1~54, 590=

-

2, 998

-

Withho ding.. ------------------ --------------- -

.

;;,-259 8,7, -9

Other. . . . . . . . . . . . ----------------------------

IS 33, ,26 9

Corporation income tax ------------- ------------ 24 301 22 33 6

---------------

: : : : :

E. --------------------

2:416

17 003 1 , : 1.847

Excise taxes _---------------------- -------------- 1 13:950 13 :41 0

INCOME, ESTATE, AND GIFT TAXE S

Civil case s

Additi~n .it. . .ndm~.Iii.li~~.-dl,.,.d~f i-ditifivi.

yment . or default , . . . . . . . . . . .

by agreement' pa

,,, ,, . ,273 ,14 7 Additional to, and penalties in cases dome m app. let.

divisions by agreement, calment a, detault . .------ ----- -

l I d l

l m d b ttl t i T

8 9

4

deltiona s, an pena ties s um e y se emen n a x

Court --------------- -------------------------------- 5 f Additional tax and penalties determined by Tax Court decl.

also : it

olaml - - ------------------------------------------

3 4

Deri an ni-------------------------------- 25 2 6

:dllli,"Il 11, 11 P... Ifle, I . ..... Initial 1, Supreme Court and muds of appeal,----------- _ _ -------------I

'

f ,f mount refunded to taxpayers a a result a re unit suits . ----

s

7

Fraud CaSel l

Deficiencies and penalties in cases disposed of in intelligence

dwivP :

Pro. Ziondicohninanded---------------------------- 6

Pms:

.

ion not warranted and cases declined by Do.

putimml .fJustice ----------- -------------- 1 7

I Includes excise taxes .

OFFERS IN COMPROMIS E

Payment of tax liability may be compromised where

it has been determined that the taxpayer cannot pay

Typo of tax or penalty

the full amount of the tax liability, including interest

and penalties, or where it has been concluded that there

isdoubt as to the amount of the taxpayer's liability.

These circumstances account for substantial differ nces

between the amounts of offers and liabilities .

Since the final phase of the long range offer 4A campromise decentralization was made effective oi ; July 1,

1963, a successful and active program has been accomplished by means of revised detailed instruction

documents, adv sory memoranda, and periodic analyses, i

which have been made available to field personnel .

In addition, regional seminars have been held for

the purpose of achieving uniformity in the treatment

of taxpayers and for the valuable exchange of information which is of assistance in resolving technical and

procedural problems .

The Service also effected a functional reassignment

designed to further unite responsibility and authority

over offer in compromise matters in the same administrative officer . The power, hitherto exercised in the

Audit Division, to accept or reject offers in compromise

of criminal liability, and of civil liability of less than

$100,000, arising under the liquor taxing provisions in

Chapter 51 of the Internal Revenue Code, and under

the National Firearms Act (ch . 53, I .R .C .), has been

delegated to the Director of the Alcohol and Tobacco

Tax Division .

The following table provides detailed information on

compromise cases closed :

Offer in compromise disposals

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

Income

=

. Profits buys ------------------------ . extate .,oldnd sift taxes. ----------------------------------

.lot and IthhD mg to- es --------------------------------------

tax., ----------

Other -iw tiie;

Delinquency spechn, 1ren...itle-n all taxes --------------------------------- -------

pan. _ -----------------------------------------------------

Offers rejected or withdrawn, total- . ----------------------------------

and Id gill I... I ------------------------------- :-: ::: :

Employment and withho Alcohol Ing taxes--------- -----------------------

taxes ... . --------------------------------------------------------

Other excise axes-------------------------------- ------ ---------------

D .1irri-ty analtia .m .1111s ., -----------------------------------------

Spealfic beftsmohi ----- ------------------------------- ---------------

COLLECTION LITIGATION LEGAL SERVICES

The legal work relating primarily to the functions

of the district directors' offices continued to maintain

the general level of activity reached in 1958 . The

number of cases received during the year was 11,987

24

-

Amount litharmand delta .)

1964

Numbe r

10,584

M

90897 179 25:818 692

4,370

1 :372118

77 360

94945

10,964

BID 86495 228 97 8

5 :999

4,360

1 : 643 29695 351

9453D

Liabilities

1963

44,49 3

29,517 6,51 4

466 6,438 1,557

-----------

73,559

11 :11564 526

9,065

815

-----------

27,470

15,86D 6,154

228 606

1:622

86,173

1112:272 638 447 9,146

670

-----------

1964

Off' .

10,12 1

Z 11Din5

92

1,025 329 17 7

11,678

7,887

2,43 2

69

1,095 18114

1963

7,275

4,013 1,1958

21 776

304 103

13, D03

1,191

2,722

54 902 1295

as compared with 11,366 for 1963 . ne number of

cases disposed of during the year was 11,762 compared

with 10,922 for 1963 . The inventory of pending cases

at the end of the year stands at 5,054, an increase of

225 from the 4,829 cases pending at the end of 1963.

For a detailed statistical report of the cases received and

disposed of during the year, see tables 23 through 25

on page 97.

Although statistical data is useful in measuring the

workload of a particular function, the activities of the

lawyers handling collection litigation cases are quite

varied, such as the maintenance of daily contacts with

the district directors' offices in rendering formal and

informal assistance. This maintenance of contact has

evolved into an operation that can quickly and effectively handle the problems which arise . Further,

through participation by these lawyers in the in-scrvice

training program a relationship is established at the

recruit level to form a basis for a smooth working

coordinated effort .

During the year three United States Supreme Court

cases vitally affecting legal problems in collection work

were decided. In addition, the Supreme Court granted

certiorari in three cases decided by United States Courts

of Appeal . For a summary of these cases see pages 64

and 65 .

FEDERAL-STATE COOPERATIO N

The growing importance of Fedcral-State cooperation in tax administration was reflected in the signing

of I I new cooperative exchange agreements during the

year. The agreements were concluded with the States

of Florida, Idaho, Massachusetts, Nebraska, New

Hampshire, New Mexico, New York, Oklahoma,

Tennessee, Washington, and Wyoming.

Thirty-one such agreements were in effect at the

end of the ye2r, and negotiations were underway with

four additional States .

Keener appreciation of the mutual benefits accruing

to tax administration from the cooperative exchange

program at both the Federal and State levels has been

primarily responsible for the unprecedented rate of

increase in the number of outstanding aireernents .

The potentials for Fcderal-State cooperation were cn~

hanced by the expansion of the Service's ADP program

and the adoption,of machine processing by many of

the States . The use of ADly-generated data has facilirated the exchange of special lists of taxpayers and

other information at a reduced unit cost.

A developing facet of Fcderal-Statc cooperation during the year was the preparation of special statistical

tabulations and the training of a limited number of

State tax personnel under authority of P.L. 87-870,

which provides for special services to be performed for

the States on a reimbursable basis .

INFORMANTS' REWARD S

Informants are those who voluntarily furnish information which otherwise might not be disclosed to, or

discovered by, the Service's personnel . The value of

the information is taken into account in determining

whether a reward shall be paid, and, if so, the amount

thereof .

From information furnished by informants, the

Service, recovered $18 .1 million in 1964, up from $12 .7

million in the previous year.

The table below summarizes activity in this area

during the past 2 years .

Receipt and disposal of claims for informants' mwords

Star., 1964 1963

P:=Iuly I --------------- ------ ------ numbeR ; -------------------------------- --- dr__

Disposed , total ------------------------------ do-_

Rejected ------------------------

Allowed ------------------------------ do ---

Pandi of Juno 9 allo w 30 ----------------------------- - do Amoun ad an claims disposed of --------ollaii'_

4 930 4 : 781 4,494

3 672 82 2

5 217

565:254

5 000 4:196 4,266

3 513 753

4 930 458:69

ALCOHOL AND TOBACCO TAX ENFORCEMENT

The threc-pronged attack on the illicit liquor- traffi c

initiated in 1958 and applied through the concentration

of enforcement effort on the apprehension of major violators, disruption of the flow of raw materials necessary

for the production of illicit spirits, and the arrest of

violators at the time of distillery seizures, has proven to

he a sound enforcement approach and was continued in

1964 . Recent favorable court decisions relating to the

.

dmissability and sufficiency of evidence led to increased efforts toward the perfection of cases of quality

and substance as a means of insuririg that each investigati n contains the elements for successful prosecution .

Encouraging signs are in evidence that inroads are

being made against the criminal traffic in illicit liquor .

Syndicate operations in the New York and Mid-Ad2ntic regions involving large continuous process stills have

been virtually eliminated . Tbe average utilized mash

Capacity of the total illicit distilleries seized in the

United States was 892 gallons in 1964 as compared to

the 1959 average of 1,097 gallons, or a reduction of 18 .7

percent in production capability over the 5-year period .

In 1964, violators were identified and listed as defendants in 87.1 percent of the 6,646 cases made for violation of the liquor laws . A total of 416 major violators

were convicted, with lengthy prison sentences imposed

in most cases.

The program directly involving illicit liquor activities

required 71 .2 percent of available investigator mari

years . The balance of the investigative effort was expended on general enforcement programs, including

firearms, liquor dealer and tobacco investigations as

well as investigations requested by the Attorney Gcncral and assignments to the Intelligence Division in

connection with the drive on organized crime.

Violations in fourteen southern states accounted for

91 .3 percent of the distilleries seized, 95 .5 percent o f

25
i

ANNUAL REPORT 9 CHAPTER FOU R

the mash seized, 79.8 percent of the vehicles seized, Service in its administration and enforcement, was

and 85 .0 percent of the arrests during 1961 . Seizures manufactured and shipped to each region earlier in the

of mash and nontaxpaid distilled spirits were about year . These exhibits are attracting many spectators

the same as last year while the number of distilleries wherever displayed.

seized increased 8 .4 percent . The number of arrests Registration of firearms totaled 486,972 compared

we

.

re down 3 .6 percent and vehicles seized were 5 .5 with 537,132 in 1963 . Investigations of violations of

percent less than the previous year. Principal data the National and Federal Firearms Act and thc Act of

on seizures are shown in the following table: August 9, 1939 (49 U.S.C . 781) resulted in the perfection Of 373 criminal cases, 300 arrests, and the seizure

Seizures and arrests for alcohol, tobacco, and firearms of 94 vehicles and 3,567 firearms . During 1963 these

violations investigations resulted in the perfection of 358 criminal

Saki . :

S1111, .*!.. . . . . ----_---------------rumbeM at distilleries-----------------:::

.taxpald distilled Spirits------ _ 1,

.

Mash

V.hili;i::--- -------- ---------------------------- - -"'ller" .beProperty(appraisadVidue) ._ - delta,.

Attests I . .. -------------------_-- -1 . .. .... ..;Umber:'

1964

4,748

148~02 2 N '1

2.298

"I'll "I .33 503

8 : 198

1963

4,382

6,213

3,092 149 940 :617

2,43 1

2

1 1 10 390

8: 507

cases, 352 arrests, and the seizure of 115 vehicles and

725 fi rearms .

The interest of the Subcommittee on Juvenile Delin

quency of the Senate Judiciary Committee in a revi. -

Sion of the Federal Firearms Act so as to restrict the

" *1 d " le M21 Or er sa of firearms to juveniles continued and

its work on this subject formed a focal point for addi,

tional legislative proposals initiated as a result of the

death of President Kennedy . Although no bills have as

yet been enacted, 22 bills were pending at the close of

the year, 19 of which deal with proposals to amcnd

the Federal Firearms Act (15 U.S .C . Ch . 18) and 3

with proposed amendments to the National Firearms

Act (26 U.S.C. Ch . 53) . The Service continued its

close cooperation with the stags of the congressional

subcommittees engaged in the consideration of these

proposals. Its representatives appeared at hearings

held by the Senate Commerce Committee and prepared reports and technical memoranda 6n eight of

these measures .

The Service has continued its close liaison with the

Department of Defense to make certain that surplus

submachineguns and other National Firearms Act

weapons, sold as junk, are released in such condition

that they cannot again be readily rendered operable.

The effect of the unfavorable decision of the Court of

Appeals for the Ninth Circuit in Russell v . United

States, 306 F . 2d 402 (1962), holding unconstitutional,

on grounds of self-incrimination, the registration requirements of the National Firearms Act and reversing

a conviction of failing to register a firearm (Sec . 5841,

I .R .C .) has been considerably mitigated by the Court's

refusal to review Frye v. United States (315 F . 2d 491

(9th Cis. 1963), cert . denied 375 U .S. 849), and Sipes

v . United States, (321 F. 2d 174 (8th Cir . July 1963),

cert. denied 375 US . 913), in which the courts of appeal

had distinguished Russell and upheld the conviction of

defendants for possessing an unregistered firearm and

an illegally made firearm (Sm. 5851, I.R.C .) .

I Includes I arrest for tubanses violations and 300 arrests for firearms violation,

In 1964 cornp... d with 2 and 352, respectively, in 1963 .

Not-Includes seizures and arrests in cases adopted, as well as originated,

bY the internal Revenue Service .

The Service's statutory power to effect a forfeiture of

property valued at $2,500 or less which has been used

or is intended for use in violation of the internal

revenue laws has proved of particular value in the enforcement of the alcohol, firearms, gaming devices, and

wagering laws . In order to provide relief for persons

who had acquired an interest in such property without knowing or having reason to know that it might be

involved in an illegal use, the provisions for the remission or mitigation of forfeiture under the customs laws

are applicable to internal revenue forfeitures. The Service investigated and disposed of 476 such petitions during the year.

FIREARMS PROGRAM

The assassination of President John F . Kennedy

aroused concern on the part of the general public over

firearms, their use in crimes, and their control . Present

day public interest culminated in the decisions of

United States Attorneys to take a closer look at violations

of the Federal and National Firearms Act in terms of

prosccutive action, and has resulted in an increase

in firearms investigations throughout the Nation .

In the area of public information, 2 permanent-type

exhibit, which contains unserviceable firearms depicting

the six categories subject to registration and control

under the National Firearms Act and notations as to the

provisions of the Act as well as the role played by the

26

5

e, Supervision of the Alcohol

and Tobacco Industries

GENERAL

The Service continued its cooperation with th e

Department of Agriculture in the grape "setaside"

program . This program involves the Service's supervision of the distillation and shipment of spirits produced from California grapes which were declared by

the Grape Crush Administrative Committee of the

U .S . Department of Agriculture to represent surplus

production . These spirits arc not to be disposed of for

beverage purposes but arc restricted to industrial

use only .

As a result of cooperative efforts by the Alcohol and

Tobacco Tax Division and the Joint Committee of the

States on Alcoholic Beverage Advertising and with full

support from the National Conference of State Liquor

Administrators and the National Alcoholic Beverage

Control Association, a study of the diversity in state

regulatory requirements governing the advertising of

alcoholic beverages was completed . This study, covering a period of approximately 2 years, led to the Joi~t

Committee's recommendation that the several States

adopt a proposed uniform regulation governing the advertising of distilled spirits and-wines in newspapers

and magazines . Some 20 States have adopted the

recommendations and issued regulations which closely

follow the Federal advertising standards . A number

of other States have indicated approval of the program

but have had to delay implementation because of legal

considerations which must first be resolved . For titles

and details of Service publications dealing with alcohol

and tobacco tax matters, see page 58 .

In the administration of the laws and regulations

governing the manufacture, storage, and distribution

of alcoholic beverage products and industrial alcohol,

and the use of industrial alcohol and products made

therefrom, the Service has encouraged continuing de .

velopment of improved methods and equipment and

more efficient utilization of manpower and equipment

for both the industries and for the Service . For example, the Service has revised methods of control which

permitted several distilled spirits plants to install and

further develop modern, automated, continuous-flow

systems in which alcohol is produced, denatured, and

shipped to industrial users through scaled pipelines and

equipment.

AUTHORIZATION OF INDUSTRY OPERATIONS

In administering the provisions of the Federal Alcohol Administration Act and its related regulations,

50,805 applications for label approval or exemption from

label approval (21,099 applications for distilled spirits,

27,126 for wines and 2,580 for beer) were processed

during the year compared with 46,949 applications

during 1963 or an increase in workload of 8 .2 percent .

A total of 20,178 issues of newspapers and magazines

were examined to determine whether the alcoholic bcvcrage advertising contained therein complied with the

Act and regulations and 2,460 radio and television commercials were similarly reviewed for compliance . In

addition, 1,154 proposed advertisements and projected

advertising campaigns which were voluntarily submitted prior to publication were reviewed as a service

to industry. Conferences with industry members, their

attorneys, or advertising agencies concerning advcrtising matters numbered 277, and 435 letters of technical

advice on advertising were issued to alcoholic beverage

industry members or their representatives .

In the National Office, 3,384 qualifying documents

were reviewed, 18 permits to use tax-free spirits and 21

permits to use specially denatured spirits were issued

to Government agencies, and 74 distinctive liquor bot~

tics were approved . The National Office processed

772 formulas for rectified products and 127 formulas

for wine.

ON-PREMISES SUPERVISION

During the year, continued emphasis was placed on

. attaining more effective manpower utilization . Alongrange plan was prepared in which a staffing goal of

421 positions was proposed for inspectors (on-premises)

which compares with an on-rolls figure of 484 on July

1, 1963 . With only minor changes in the number of

plants requiring supervision (360 in June 1963 as compared to 355 in June 1964), the plan was based on a

continuing program of analysis and modernization of

supervisory requirements .

Distilled spirits plants requiring on-premises supervision produced 8389 million tax gallons of distilled

spirits during 1964 . Tax-free withdrawals of spirits,

principally for use in the arts and industries, amounted

to 609 .2 million tax gallons of which 540 .2 million tax

27
I

I

ANNUAL REPORT 9 CHAPTER FIVE

gallons were denatured. Distilled spirits in bonded

storage at the close of the year totaled 1,057 .3 million

tat: gallons. More than 88 .0 million proof gallons of

rectified products were produced during the year. Distilled spirits bottled during 1964 totaled 228 .3 million

wine gallons .

INSPECTION OF ESTABLISHMENTS

An Inspector's Handbook, which is under development is intended to further stimulate the audit-type

inspection program and result in more meaningful

inspections, especially at revenue producing plants .

The objectives of the "audit approach" to on-site inspection of plants and permittees are directed toward

strengthening the procedures for the measurement of

taxpayer compliance and self-assessment . Procedures

under this program make greater use of modern audit

methods and techniques and substitute a system of spot

checks and selective samplings for the former routine

inspection accounting, and require evaluation of the

records systems established by plant proprietors in order

that full advantage may be taken of such internal

controls .

During the year a total of 31,538 inspections were

completed, compared to 28,966 in 1963 . This increase

was due largely to the phasing of Advanced Inspector

Trainees into independent productive inspectors .

Breweries and wineries subject to inspection produced

103.0 million barrels (of 31 gallons each) of beer,

205.7 million gallons of still and effervescent wines, 5 .0

million gallons of vermouth, and 15 .6 million gallons

of special natural wines other than vermouth . Tobacco products factories, also subject to inspection, produced 7 .7 billion large cigars, 913 .2 million small

cigars, 15,505 large cigarettes, 536.0 billion small cigarettes, and 178 .9 million pounds of manufactured tobacco (including smoking and chewing tobacco, and

snuff).

CHEMICAL ANALYSIS AND RESEARCH

Under a renewed contract with the Atornic Energy

Commission, the National Office laboratory is expand .

ing research in neutron activation'analysis to develop

techniques specifically applicable to physical evidence

problems encountered in Treasury law enforcement

work . Federal court precedent was established in this

field in a recent case when the judge accepted as

evidence results obtained by using activation a6lysis

on soil samples. Soil taken from the bottom'.of a

tractor-trailer which was 6eized with 2,418 gallons of

"moonshine" in New York was identified by the laboratory's sensitive detectors as coming from an illicit

still-site in Georgia. At the annual meeting of Interpol, in Paris, the National Office laboratory was appointed coordinator for the International Police Organization's program for the study of neutron activation

analysis for all member nations .

Thin layer chromatography, an emerging analytical

technique of importance, is now being successfully

used by the National Office laboratory to reduce materially the time formerly required for the examination

of illicit drugs . Research is being carried out to further

extend this scientific tool to the identification of complex drug mixtures by the development of suitable

solvent systems . Other research activities resulted in

the publication of nine papers in recognized scientific

journals .

The national and regional laboratories analyzed a

total of 40,559 samples in 1964. Of these, 9,316 rep.

resented illicit spirits and 6,334 were narcotic drugs .

During the preceding year, 39,600 samples including

8,600 of. illicit spirits and 8,300 of narcotic drugs, were

analyzed . In the National Oflice laboratory, 2,655 new

formulas for the use of taxpaid (nonbeverage) alcohol

in foods, flavors, and medicines were approved and 647

samples were examined . Comparable statistics for

1963 are 2,825 formulas approved and 623 samples

examined . Manufacturers using specially denatured

alcohol submitted 4,876 formulas, 4,187 samples, and

8,754 labels for approval this year, compared with 3,904

formulas, 4,219 samples, and 9,211 labels submitted

last year. Increased activity by tobacco manufacturers

in the area of new product development has resulted in

a marked increase over the past year in tobacco samples

analyzed by the National Office laboratory.

28

Legislative Activities

GENERAL

The year was a busy one for the Service in the

area of tax legislation . The principal activities were

directed toward the Revenue Act of 1964 . In addidon, study, research, and assistance were carried on

with respect to particular revenue measures enacted

by the Congress or still pending . The regular and

recurring functions performed by the Service in connection with the Department's legislative program, reports on bills, drafting of legislation, and other technical work were continued .

LEGISLATIVE PROGRAM

The Service submitted 101 items to the Assistant

Secretary for Tax Policy for consideration in the formulation of the Department's legislative program. These

suggestions dealt principally with administrative prob .

lems, tax loopholes, and tax inequities . They were

developed from reports submitted by offices throughout the Service ; from research and study projects undertaken to develop information about tax inequities,

abuses, and administrative problems which seem to

warrant corrective legislation ; from suggestions made

by Members of Congress and the public ; and from

suggestions submitted by employees through the inccntivc awards program .

It is through the Technical Coordination Program

that the field offices report to the National Office on

actual taxpayer cases involving tax abuses, inequities,

and administrative problems. These reports are

studied and evaluated in order to determine what can

be used as legislative suggestions from the Service to

the Department. This year, as usual, the program was

quite active .

LEGISLATIVE ASSISTANC E

President Kennedy in his tax message to the Congress on January 24, 1963, recommended a reduction

in individual and corporate income tax rates and also

structural revision and reform directed toward the relief of hardship, the encouragement of economic

growth, and the equitable broadening of the tax base .

Representatives of the Service attended the executive

sessions of the House Committee on Ways and Means,

and assisted in drafting legislative language to carry

out tentative decisions of the Committee, and the

Committee report.

The Senate Committee on Finance conducted public hearings on the proposed Revenue Act of 1964 (H .R .

8363) . Representatives of the Service attended the

public hearings and prepared summaries of the testimony presented by the witnesses . When the Committee considered the legislation in executive session,

Service representatives assisted in drafting changes proposed by the Committee. The Act was passed by the

Senate and on February 26, * 1964, it was signed by

President Johnson and became Public Law 88-272.

Representatives of the Service attended the public

hearings and executive sessions of Congressional Committees on the enacted and pending bills listed below,

and prepared summaries of the testimony and decisions .

They also rendered other technical assistance in drafting

the legislation and related Committee reports.

Information reports, technical reports, drafts of bills

and accompanying technical explanations, and other

data relating to legislative matters were prepared for

the Office of the Secretary of the Treasury . Included

were 51 formal reports on Congressional bills which

dealt with proposals to amend the Internal Revenue

Code and other legislative matters, including private

relief bills .

In the alcohol, tobacco, and firearms area, 17 draft

reports and technical memoranda were prepared for the

Treasury Department on legislative proposals. Service

representatives appeared before the Senate Commerce

Committee at public hearings held on two firearms bills

and also before the House Ways and Means Committee

atPublic hearings to consider the need for additional

legislation relating to the production and distribution

of beer concentrate.

LEGISLATION ENACTED

Congress enacted a number of public laws relating

to tax matters, the most important of which (other

than the Revenue Act of 1964) are listed and sum11712rized below :

Public Law 88-133 increases the amount of compensation for services performed in any calendar month

which is subject to the employee tax, employer tax, and

employee representative tax imposed by the Railroad

Retirement Tax Act .

Public Law 88-153 extends for 2 more years the

period within which employers who have consistently

accrued vacation pay for income tax purposes pursu29

! I

if
ANNUAL REPORT as CHAPTER SI X

ant to Income Tax Ruling 3956 may continue to use

that method .

Public Law 88-173 facilitates the restoration to the

Treasury of moneys made available to the States under

the Temporary Unemployment Compensation Act of

1958 and Title XII of the Social Security Act by modifying the rate of employer repayment and by permitting installment repayment by a State in lieu of additional employer taxes.

Public Law 88-339 permits the return in bond in unchanged condition of exports of tobacco products to the

factory of a manufacturer of such products without pay.

ment of duty equal to the internal revenue tax.

Public Law 88-342 prevents double taxation in the

case of certain tobacco products exported and returned

unchanged to the United States for delivery to a manufacturer's bonded factory.

Public Law 88-348, the Excise Tax Rate Extension

Act of 1964 in general, postpones until July 1, 1965,

reductions in certain excise tax rates, and termination

of the excise taxes on general telephone service and

transportation of persons by air, which would have

become effective on July 1, 1964 .

Senate Concurrent Resolution 19 expresses the sense

of Congress that Bourbon Whisky be recognized as a

distinctive product of the United States and suggests

that Federal agencies take appropriate action to prohibit the importation of such whiskies .

LEGISLATION PENDIN G

Some of the tax bills passed by the House at the end

of the fiscal year and awaiting action by the Senate were

as follows :

H.R . 98, to permit a refund of the tax on imported

distilled spirits, wines, or beer found to be unmercharitable. '

H.R . 780, to provide a credit against the estate tax

for Federal estate taxes paid on certain prior transfers

in the case of decedents dying after December 31, 1947,

H.R . 3297, to exempt from income taxation certain

nonprofit corporations and associations organized to

provide reserve funds for domestic building and loan

associations .

H .R . 3438, to 2111end the Bankruptcy Act with respect to limiting the priority and nondischargeability

of taxes in bankruptcy .

H .R . 4649, to permit the use of certain volatile fruit.

flavor concentrates in the cellar treatment of wine .'

H .R . 5739, to correct certain incouities with mpcc t

to the taxation of life insurance companies. '

H.R. 7267, to authorize partial refunds of gasoline

taxes directly to applicators with respect to psolin

used by them in providing services to farmers in farming operations.

H .R. 8000, to impose a tax on acquisitions of certain

foreign securities in order to equalize costs of longterm financing in the United States and injnarkets

abrpad .'

H .R. 10467, to continue for a temporary period,,certain existing rules relating to the deductibility qf accrued vacation pay .'

LEGISLATIVE IMPLEMENTATION S

The Service is already well on its way toward impleincritation of the tax legislation enacted during the

year . Implementation includes the issuance of new

and amendatory regulations, revisions of tax return

forms and instructions, issuance of publicity primarily

through news or technical information releases, revision of Service publications, and issuance of special

instructions and procedures to field offices. In some

instances immediate action, particularly publicity, was

required to enable taxpayers to comply with requirements of legislative amendments or to take advantage

of tax relief afforded .

Some of the more important publicity releases on tax

legislation enacted during the year include the following Technical Information Releases :

TIR-518 (October 16, 1963) calling attention to the

provision in Public Law 88-133 which increases the

amount of compensation subject to the employment

taxes with respect to services performed in November

1963 or any month thereafter .

TIR-555 (March 16, 1964) directing attention to

the provision in Public Law 88-272 under which a

taxpayer entitled to the investment credit is no longer

required to reduce the basis of qualifying property

on account of the credit, for depreciation or other

purposes, if it is placed in service by him after December 31, 1963.

TIR-558 (March 26, 1964) calling attention to the

provision in Public Law 88-272 allowing a deduction

from gross income for moving expenses paid or incurred by an employee in moving to a new principal

place of work.

TIR-573 (April 20, 1964) calling attention to the

provision in Public Law 88-272 which provides for an

exclusion from gross income, at the election of the taxpayer, of gain received from the sale or exchange of

the principal residence of a taxpayer.

TIR-604 (June 12, 1964) reminding taxpayers of

the provisions of Public Law 88-272 which might

require action by taxpayers before July 1, 1964, in respect of a special rule for determining when payment

of a charitable contribution consisting of a future

interest i tangible personal property is considered to

have been made.

' Signed into law following the close of the fiscal year.

7

Legal Activities

GENERAL

In recounting the accomplishments of the Service i n

legal activities it is necessary to recognize that legal

services are an important element in all facets of tax

administration and therefore play a vital role in many

operations of the Service . Criminal prosecution cases,

civil litigation cases, legal services in collection litigation, and workflow of cases in the Service and the courts

are shown under Enforcement Activities . The legal

staff has always contributed much to the Service's legislative activities and will make an even stronge contribution in the future (see Management Activities, p.

45) . Detailed statistics on legal activities are shown

in tables 18-26 on pages 95-97 . The most important

court actions are reported in the appen4ix, beginning

on page 64.

CASE DISPOSALS BY OFFICE OF THE CHIEF COUNSE L

11,87 8

Collection Tax

litigation Court

Alcohol

.ad

tobacco

is .

Wines. R.tu .d

.ant

litigation

Oth.,

1964 1963

CASELOAD . DISPOSAL ACTIVITY

The disposals of total caseload in the Chief Counsel's Office reflected an increase to 28,766 from the total

of 26,465 in 1963 . At the end of the year the pending

total caseload was 21,305, a decrease of 1,129 . Caseload receipts increased to 27,637, up 676 cases from the

26,961 received in 1963 .

CIVIL LITIGATION

The Government won five and lost two of the seven

civil tax cases decided by the Supreme Court in 1964.

This compares with nine Government wins, in whole

or in part, in 1963. The Government also won, in

whole or in part, 381 of the 520 civil tax cases decided

by courts of appeal (exclusive of collection litigation

and alcohol and tobacco tax legal matters), compared

w

.

th 271 of 349 such cases decided in 1963 . Thus, the

Government's position was wholly or Partially sustained

in 73.3 percent of courts of appeal cases, compared with

77.7 percent in 1963 . For details as to civil litigation

cases see tables 21 and 22 on pages 96 and 97 .

In the trial courts (Tax Court, Court of Claims

and United States district courts) the record of Government wins, losses, and partial wins appears as

follows :

Trial court cases won, lost, or partially won by the

Governmen t

Tax Court Court of District Courts

cliflar.

Actio n

W ------------------------------

-

Lost_------------_----------- -

Pa flat y mn.-- . ---------------- -

Pe;con~ mn or partially Won- . ---- -

TAXES IN LITIGATION

At the end of the year, $1 .4 billion were involved in

liabilities for taxes and penalties being contested by tax .

payers. Actions for redetermination of proposed deficiencies in the Tax Court are handled by the eight

regional counsels while those for refunds of taxes and

penalties are handled at the National Office level .

In the trial or settlement of cases in the Tax Court,

the Court of Claims, and the Federal district courts,

$208 .7 million was successfully defended as proposed

deficiency assessments, and $92 .0 million was success30 31
ANNUAL REPORT 9 CHAPTER SEVE N

fully defended in refund suits, for a total of $300.7 year, and the attorneys were assigned to the National

million of revenue saved for the Government (see the Office and regions, as follows:

table below) . Oflice Numb~ of Atto-eyi

Taxes in litigation

fin thousands of dollaral

Tax urt

- -

R .f..d

Status

Total

,

tis'lien

Deficle" . Overpay.

it.ruint,

1 '169 .9 926119 141,421 01,809

Chipasid .1_ --------------

'. 1.121 :~1~12, 12:,21"

g4

1~1,1: '131

Pending June 3" ------- ---- 1,422:463 952 :182 79,000 39 21 8 1

Ansoun

I

saved -------------- "DO, 723 132 .671 76,077

9 ;975

National Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275

South

"',

Regi . . . . . . . . . . . . . . . . . . . . . I . . . . . . . 41

Northeast Re 20

Midwen Region.g ." 55

antral Region . . . . . . . . . . . . . . . I . . . . . . . . . . . . 42

Southwest Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

New York Rep .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Mid-Atlantic Region . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Wi,stern Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

TORT CLAIMS UNDER THE FEDERAL TORT CLAIMS

ACT

The number of claims for damages resulting from

the negligence of Service employees acting within the

scope of their employment continues to increase . DurPERSONNEL ing the year 143 administrative claims were disposed

As of June 30, 1964, the Chief Counsel's Office em- of by the Service (as compared with 99 last year) and

ployed 1,276 persons, with attorneys numbering 64.4 11 tort suits for judicial determination were closed .

and nonattorney cmPIOYeCs 632. This figure rcpre- Twerity-eight tort suits were pending in the courts at

sented a decrease of 14 employees from the preceding the end of the year .

8

International Activities

GENERAL

The work of the Internal Revenue Service oversea s

consists of the performance of three broad but distinct

functions . Two of these functions have been performed by the Service for many years . One involves

participation in the negotiation of tax conventions with

foreign governments and the preparation of regulations under these pacts . Another is the ad.

inistration

of Federal tax laws affecting mainly U .S. citizens and

business organizations abroad . A relatively new and

expanding function, made necessary by recent developments in world affairs, is the furnishing of technical

assistance to other countries in the process of strengthening and modernizing their tax administration .

FOREIGN TAX ASSISTANCE PROGRA M

The Foreign Tax Assistance Staff, which was activated during 1963, was considerably enlarged in 1964

to meet requests for assistance in tax administration

from an increasing number of countries throughout the

free world . To ensure effective coordination both

within the Service and among other agencies, the Staff

operates as an integral part of the CommissionerIs

Office .

The number Of long-range Internal Revenue Service

tax modernization advisory teams assigned abroad rose

during the year from one in Chile to nine, including :

Colombia, Ecuador, El Salvador, Guatemala, Nicaragua, Peru, Korea, and the Philippines . At the close

of the year long-range teams were being planned for

eight additional countries, including Brazil and India .

During the same period the number of long- and

short-term advisers assigned overseas rose from 17 to

50. With few exceptions the advisers were experienced Internal Revenue Service officials who received

individual specialized training, including language

training, before departing for the assignments abroad .

Overseas assistance usually covers the full range of

tax administration, including audit, collection, intelligence, automatic data processing, training, organization and methods, and related programs. The Service

representatives assigned abroad under this program

function in an advisory capacity to the tax officials of

the host countries. In this manner the tax administration experience and know-how, not only of the

United States but of other countries as well, arc made

available to the participating countries on an organized

and systematic basis.

In addition to the efforts abroad, the Service received

more than 150 visiting tax officials from 41 different

countries. Some of these officials were of Cabinet or

Sub-Cabinet rank . Most of them received specialized

training for periods ranging from a few days to several

months . In countries where the Service has tax assistance teams, these Visits are coordinated with the Internal Revenue Service teams there, to insure maximum

application by visiting officials of concepts in tax administration which they acquire during their orientation in

the United States .

These programs, both in the United States and overseas, are conducted in close collaboration with the

Agency for International Development, Department of

State, and the Alliance for Progress .

TAX CONVENTION S

Discussions took place in Washington with one country and abroad with six countries with a view to the

conclusion of four new income tax conventions and

three tax conventions supplementing those already in

existence . The texts of such agreements were in various

stages of development at the close of the year .

A supplementary protocol to the Swedish income tax

convention was signed on October 22, 1963, and a

supplementary protocol to the Netherlands' convention

as it relates to the Netherlands Antilles was signed on

Octobei-23,1963 .

A supplementary protocol to the Greek estate tax

convention was signed on February 12, 1964, and the

Senate gave its consent to the ratification on June 23,

1964.

The Senate Foreign Relations Committee opened

hearings on May 27, 1964, on an income tax convention

with the Grand Duchy of Luxembourg, two supplementary protocols to the income tax convention with

Japan, the supplementary protocol to the Swedish income tax convention, and the protocol supplementing

the income tax convention with the Netherlands as it

relates to the Netherlands Antilles .

On June 8, 1964, the President withdrew from Scn2tC consideration the income tax conventions with India,

Israel, and the United Arab Republic .

32 33
ANNUAL REPORT a CHAPTER EIGH T

INTERNATIONAL OPERATIONS

The Office of International Operations continued to

pliu:e emphasis on the coordinated examination program . Under this program agents engaged in the iniernational operations of the Service advise and assist

district agents in the development of international issues . Equally important to the advice and assistanc e

ndered was the imparting to district agents of the

specialized knowledge of these agents . As originally

conceived, this program was installed as a temporary

expedient to deal with existing problems while district agents were gaining background in the international area. During the year the decision was made

that agents assigned to the program would return

to the district offices prior to December 31, 1964, and

district offices would thereafter conduct audits of domestic taxpayers involving foreign transactions

'

Participation of the agents during the year has resu Ited

in the recommendation of additional tax in the amount

of $167 million in 378 examinations . Much of this

2 dditional tax results from many novel issues raised

by agents of the Office (of International Operations .

The Commissioner visited six countries in Europe in

I he fall of 1963 to study the need for greater taxpayer

assistance to American individuals and corporations

abroad affected by provisions of the Revenue Act of

1962 . During the 2-week trip, Mr. Caplin conferred

with key tax administrators and officials in France,

Switzerland, Italy, West Germany, the Netherlands,

and England to discuss cooperation in tax administration between the various countries and the United

States . In addition to conferring with United States

Embassy officials in the various countries, the Commissioner met with Service representatives who are

assigned to the Embassies .

The Service conducted a taxpayer compliance and

education program abroad . Twenty-threc agents trav-

'Cled in excess of 120,000 miles to visit 100 cities in

more than 50 countries . These agents prepared returns

for 4,958 taxpayers reporting a tax liability amounting

to $1 .8 million. A total of 15,052 persons was assisted .

Agents also conducted 14 schools attended by 613 military tax instructors who in turn assisted armed forces

personnel abroad.

The foreign posts located at Paris, France ; Iondon,

England ; Ottawa, Canada ; Mexico City, Mexico ; Sao

Paulo, Brazil ; and Manila, Philippine Republic completed 65 work assignments covering audit and collec~

tion activities and disposed of 114 collateral informa~

tion reports . A total of 93 foreign collateral investigations were conducted for the Intelligence Division .

Service officials consulted with foreign authorities on

the disposition of seven cases involving double ta ation. Also, the Director of International Opera6mis

with other personnel of the National Office met')vith

Canadian tax officials for the purpose of assuribg continuing mutually satisfactory arrangements for the

exchange of information between the two countries .

During 1964, Service personnel visited the Islands of

Guam and American Samoa to provide guidance and

assistance in the administration of their social security

tax laws. A detailed review was made of the proccssing operations and their controls and safeguards

were checked to insure that revenue receipts are being

properly protected . Recommendations were made as

needed to improve their operations .

Negotiations with the Department of Defense to

accept notices of levy covering the salaries of their

civilian personnel overseas were successfully concluded

on March 20, 1964, when the Assistant Secretary of Dcfense formally agreed . Prior to this, we were successful

in negotiating a similar agreement covering military

personnel located overseas . Before these agreements,

delinquent accounts of overseas military and civilian

taxpayers employed by the Department of Defense were

referred to the Office of International Operations which

attempted to enforce collection by means of correspondence. Also, due to the lack of enforcement powers outside the United States it was often difficult and sometimes impossible to effect collection . District offices

now retain the delinquent accounts of military and

civilian taxpayers with overseas addresses and serve notices of levy directly at the Finance Centers . These

agreements are significant accomplishments. They

not only simplifica collection procedures but also increased the enforcement power overseas. The effect

will go a long way toward increasing voluntary compli .

ance among these taxpayers .

Under the provisions of section 6046 of the Internal

Revenue Code of 1954 as amended by the Revenue Act

of 1962, United States citizens who were officers or

directors of- foreign corporations in which United

States shareholders held 5 percent or more interest and

each such shareholder were required to file an information return as of January 1, 1963 . These information returns provided data concerning the extent of

United States interest with respect to unrepatriated

earnings of the foreign companies and other financial

data .

34

INTERNATIONAL ACTIVITIE S

During 1964, approximately 24,500 information returns were received regarding foreign corporations in

which United States shareholders held a 5 percent or

more interest. When these data are tabulated, the

Service will have, for the first time, an inventory of

United States shareholders with 5 percent or more interest in a foreign corporation together with an I.

nventory

of foreign corporations in which they have an interest .

Each district will be furnished with the names of

United States shareholders in their district and the corporations in which they have an interest in order that

they may be apprised of persons who may have income

from foreign corporations or who may be liable for tax

under subpart F or subpart G added to the 1954 Code

by the Revenue Act of 1962 . The law also provides

that whenever there is a change of ownership of as

much as 5 percent, another information return is requit-ed to be filed which will result in constant and

updated inventory.

Taxes withheld by domestic withholding agents, taxes remitted by foreign governments, and the number

of information documents filed are listed in the table

at the right.

Tax withheld from payments to nonresident alien entities of

treaty and nontrecity, countries

Thousand dollar s

Country

Numbaro f

intorme- Tax withheld

Tax fro m

tion docu. by dome~tic foreign v-

.art.

.1 d

thhol me

r

ornmen or Total

.&. .is .1thholdi,it

.sent$

Total . ---------------- 415,681 80,859 16,605 97,464

Treaty countries :

Australia .--------------- 2,527 204 ------- - -- 204

Austria_--------------- 701 44

- -

----------- -

1:11' u 1 I 1 11 2,142 207

' '

C n.d. 5,: 2,

7 14,642 837 15: 479

Do.mark ..

Finland ---------- - ---- --- - -

Framce_ ----------------

1 286

'363

32 439

1

7

'2

8

2 851

- : : : ----- :_ _

- ----- - -

40

I'lla

Germany ----------------

8

: ..

1 :37 1

------ - G is... . . ... .... . . . . . . . .

Mdual ----------------

1 .1112

303

1 .

3

108

: ---------- -

------------

183

108

Ireland --_------------- 2,912 293 6 M

let

Y ------------------- -

JhI., - _---------------- ., -

herands ....

5,050

14 344

: 859

52 7

399

4

----------- -

----------- 292-

527

399

h 5 172

flards Antilles

:1

2 695

1 :

999

5

,

2.004

N . eal .rd--- -

'or*,, ----------- __

--

557

3 149

4 9

211

---------- -

-----

49

,.kl,t , : 211

- ------------ -- 97 23 -----: : ---- ---- 23

S..d-_ ~d-------------- 3 .079 441 ------------ 441

Sw IthirIlIS" ------- -

I"

on a out d . . . ... .

27,682

636

19, 38

1559 .....14 895

... ....

34 294

'155

Un,ihsd Ki sea n iclom and over.

far, t%inn 42,259 17.439 333 17,772 ii

Nontreaty countr as y orm

1042S ---------- i-I---

Treatyand nortrosiyoun r as

63,077 12.1 7 12 187

n

=on bond Information

:

ants. ---------------- 45,730

7

---------- 1,16 7

The following table discloses the growth in United Negligible amounts of income subject to withholding

States income paid to nonresident entities . The

'

in- at the rates of 2 percent and 27 percent have been if i nut- .

comes covered in the analysis are the fixed or deter- ted . Also the table does not necessarily reflect all of the

minable annual or periodic incomes paid to nonresident income going abroad due to the fact that some withentities and reported on Form 1042, the United States holding agents do not report exempt income .

Annual Report of Income Tax to be Paid at the Source .

Growth in United States Income derived by nonresident alien entities shown by rates of withholding tax

lin thousands of dollara l

Withholding tax rates 1957 1958 1959 1960 1951 1962

1. .....

M57~79"61

E .'"ruct in- ------------------------------------------------

---

40 657 74 117 117 997 45 923 149 750 128 31

3

87 656 50 percent ---------- ----------------------- - . . . . . . . ---------

rcent -

P49 :370 63:627 74 : 924 1

02 :779 38:116 44 : 503

,

867 Pe ------------ --------------------------------------

--- 5 : ------- - i : ----------------------------

6

2

:

3 39 4

2 193

2 295

31 3: 201 2 153

304 : 531

3

2 89 3

51 :900

2

364:886 333

2 745

395' 77 .

3

1321711 30 or n re --------------------------- - ---

3

67, 80

73 4

39 72,632

___

79,456 77.097

, ~

, 57 -1, 523

Trtxul~-------------------------- _ ---------------------- 422,9% 526,679 ;7 2 7 6112,951

-

632,182 634,189 211,195

35
9

Planning Activities

GENERAL

Planning is an essential phase of the tax administration functions canducted at every organizational

level of the Service. Tlirough the procedures csmblished for the annual updating of the Long-Range Plan,

a comprehensive system is provided for projecting

workloads and for developing and reviewing program

objectives, operational capabilities, and resource requirements to assist top management in decision making and in the formulation of policy. Since tax administration involves a variety of separate functional

activities dispersed throughout hundreds of field offices,

the attainment of programs and goalsis dependentupon

a high degree of integrated planning and cooperau.ve

execution of the approved plans. Current programs

and work plans are included to insure that current

operations are consistent with and directed toward

established long-range goals .

SHORT-RANGE OPERATIONAL PLANNIN G

Since the long-range goals can be attained only over

a period of several years, an important aspect of the

Service's planning activity is to define with maximum

precision that portion of the plan which can be achieved

in the next budget year and to estimate the funds necessary to support these activities. Revisions to shortrange guidelines and priorities are made after appropriation of funds so that the final work-plans conform

with available resources .

Detailed work-planning and control systems are Used

for analyzing and appraising workload and detcrmining short-range manpower requirements in the Service's accounting, returns processing, delinquent accounts

and delinquent returns activities . These systems provide for identification and evaluation of operational

steps, assignment of appropriate priorities to the various work phases, and the allocation of manpower in

accordance with the predetermined priorities .

The allocation of resources to carry out approved

work plans is reflected in the financial plan where annual appropriations are translated into allotments for

the Service's various offices and activities. The financial plan provides national and regional program managers with a "blueprint" as to the kinds and amounts

of work they are expected to complete and the manpower and resources that will be given them to do it .

This is the final step in the Service's budget cycle and

represents the culmination of planning which begin s

36

with the Long-Range Plan and preparation of annual

budget requests . The financial plan is subject to modification throughout the year as needs arise and to the

extent that compensating or supplementary resource

changes are possible.

LONG-RANGE PLANNIN G

The. nature of tax administration requires foresee.

ing future needs with sufficient leadtime to recruit and

train Specialized personnel to meet reasonably predictable workloads . These needs are so large and complex that they cannot be met adequately through shortterm programs . Through the medium of the LongRange Plan, a coherent action program is developed by

all components of the Service to meet long-term growth

needs, improve taxpayer compliance, and take full

advantage of technological advance~ in all phases of

processing and management.

The importance of the growth factor in determining long-term Service needs is demonstrated by the

increased volume of tax returns filed in recent years

and the numbers expected io be filed during the next

decade . Between 1930 and 1939 the tax returns workload tripled from 6 to 18 million . By 1960 the number

had increased to 94 million or more than 5 times the

1939 total . The number filed during the 1963 calen .

dar year was approximately 98 million . Projections recently prepared by the Statistics Division for long~

range planning purposes indicate that the volume of

returns filed will reach 112 million in 1970 and will

exceed 120 million by 1975. The table on the following page shows the national projections for selected

types (if returns .

In order to develop the Long-Range Plan most effectively more detailed information must be obtained in

a IiLber of problem areas where information is lacking . These areas involve (1) the size and nature of

the total tax administration workload ; (2) the portion

of the total tax administration job that is accounted

for by current operations; (3) the portion of the total

tax administration job that is left undone ; or the gross

tax administration gap; (4) the level of taxpayer compliance ; (5) changes in the level of taxpayer compliance and whether compliance is increasing or decreasing under existing programs ; (6) the effectiveness

with which current operations arc being conducted ;

and (7) the net tax administration gap, or that portion

PLANNING ACTIVITIE S

Selected types of returns filed in 1963 and projected for

calendar years 1965, 1970, and 197 5

I

Type of return

[Thousards)

Total returns. ------------------------

Individual, tobal--------------------

AGI order $10,000

AGI $10,000 and

corporation, total ---------- -------

Form 1120, total ---------------

Under $50,DOO 3 ----

$50 DID under $1

si,666,ollo or robi ----------

For

on I 120-S ----------- ------

Farm 1122----------- ---

Employment---------------------

All the . I ---- -----------------

Actual

1963 1

98,32 8

62,994

56 035

6: 959

1,352

1,20

547

594

69

12 6

1 7

21 457

12: 525

. Projected

196 5

102,076

65,346

56 793

8 : 55 3

1 .489

1,261

567

621

73

166

62

22 136

13 : 1 US

1970

112.071

71,831

58 1107

13: 425

1,874

1,52 8

676

769

84

264

82

23 722

14: 643

197 5

121,62 4

78,03 9

59,500

18,539

2,272

1, 8117

790

922

95

36' 10

3

R : 62 31

Date by size class are estimated .

includes Forms 1040C, B. Is B. N Be PR .,it SS

Includes Forms IIZO ith

. ""' "

h rx,iodrid.

4 Includes indwidual docialati.mi, curp. .. timi clecivatimul, Partnership. estate lifit . exempt organization, special occuparion, fiduciary, and exch. tax returns

:

and Forms 7004 and tentative 1120L

and

and ID42 .

of the gross tax administration, gap that is worth closing.

To obtain data relating to these problem areas and

to meet the demand for a long-range research program

which would complement and further the objectives of

the Long~Range Plan and other tax administration requirements, the Service has developed and implemented a Taxpayer Compliance Measurement Program. TCMP is gathering new data in three distinct

phases (Delinquent Accounts-Phase 1 ; Delinquent

Returns-Phase 2 ; and Returns Filed-Phase 3), and

will integrate all essential information required to

measure the dimensions of Federal tax administration

workloads and trends; related requirements, such as

manpower, training, equipment and buildings ; an t e

basic economics involved, such as costs, direct and

indirect tax yields, and cost-yield ratios .

The Delinquent Accounts Phase was 'installed on a

nationwide basis on January 1, 1963, and a revised

continuation of this phase was installed on January 1,

1964 . The Delinquent Returns Phase, an initial nonfarm business survey conducted only in the Southeast

Region, was installed and completed during the period

May 6-August 31, 1963. A limited test survey of

"farm-business," on which field work in six regions

will be done, will begin in September 1964. It is

planned to extend delinquent returns surveys to other

regions as returns processing is undertaken under

automatic data processing . The Returns Filed Phase

was inaugurated on January 1, 1964, and provides for

the analysis of a nationwide sample of 100,000 1963

individual income tax returns filed in 1964 .

743--871 0-65-4

ORGANIZATIONAL PLANNIN G

As part Of its general planning activity, the Service

also conducts continuing studies and projects designed

to increase the effectiveness, productivity and economy

of the various organizational elements. In the last

year, such studies have included :

( I ) A series of tests at selected sample locations of

the need for providing additional clerical assistance to

technical personnel, and of the relationship of the additional costs of such clerks to the productivity of such

offices.

(2) Data requirements of various divisions of the

National Office were examined in terms of the most

effective organization to be established in the IRS Data

Center (to be built in Detroit) to produce the needed

material .

(3) Both national and field offices were surveyed to

ascertain the appropriate criteria which should be prescribed in locating local offices.

SYSTEMS DEVELOPMENT

Modernization of tax administration through systems development and improvement continued to get

major attention during the past year. A number of

projects directed toward this goal were completed or

moved forward significantly :

(1) IMPROVEMENTS IN THE SERVICE'S MASTER FILE

ADP SysTEAI~To reduce costs and improve results.

INPUT.-Investigations of optical character recognition equipment and magnetic tape reporting as devices

for reducing input costs were accelerated . A series

of test projects was started, or scheduled, to determine

the extent to which these two approaches may have

application in the Service. Preliminary indications are

that within 2 or 3 years, both devices are likely to b -

come important elements of the ADP input preparation

operations .

OuTPuT.-A project aimed at improving the efficiency of output printing operations was completed

with the installation and operation of a microfilm

printer at the National Computer Center . This

printer rcads information directly from magnetic tape

onto a microfilm print with no intervening paper printing step and will be used primarily to produce registers

and reference indexes of various kinds needed in district offices . By 1966, the microfilm printer is expected

to be producing at least 700 million lines of printing

of this kind annually, resulting in a substantial reduction in printing costs .

CommUNICATIONS~A pilot project was developed to

determine the feasibility of transmitting data between

the service centers and the National Computer Centcr, through the Federal Telecommunications System

37
ANNUAL REPORT * CHAPTER NINE I PLANNING ACTIVITIES

MICROFILM PRINTER

.to, com operate about 25 times as fast a. the high-speed impact printer he .. be-. Costs will be at

rproved on much of the Service's data processing work through the use of this equipment .

IMPACT PRINTE R

PrInters, like this, now used by the Service In considerable

numbers, am capable of producing 600 lines a minute .

Nevertheless, many of them will be replaced by a micro01. print., (.. . below).

(voice network) established by the General Services

Administration for use by Government agencies .

These data are now being moved on magnetic tapes

via public and private shipping facilities. The pilot

operation is expected to establish whether or not this

method of data transmission will meet the Service's

needs in terms of volume, timing, and cost .

(2) IMPROVED SERVICEs FROM IMPROVED SYSTEMS .-

To service management objectives not now being served

or being served inadequately.

INFORMATION STORAGE AND RETRIEVAL.-A plan defining objectives and blocking out project areas was

developed as the basis for proceeding with the establishment of 2 servicewide information storage and retrieval system . Objectives to be served by such a sys.

tem-concentrated largely in the Service's legal area

of work-are grouped into two broad classes : (a) Those

directed toward the attainment of maximum consistency of positions taken on legal issues, (b) those aimed

at improving the capacity of professional personnel

to research case files, rulings, court decisions, technical

memoranda, and special studies . Some segments of

the system relating to the reporting of legal issues have

already been installed.

Also, plans were developed in the past year to establish 2 master file of exempt organizations to enable

the Service to improve its administration in this area

of its legal work and to be more readily responsive

to Treasury Department and Congressional information

needs. Gradual expansion of the overall information

system is planned as additional knowledge in this relatively new field is acquired and applied .

CURRENT RESEARCH PROGRA M

Research activities continued this year on a broad

front. The demands for analysis of administrative

means to implement effectively the provisions of the

Revenue Act of 1964 accounted for a substantial portion of research output . As in prior years, however,

internal management and operating problems gave rise

to numerous studies designed to assist in the planning of improved Service operations in the context of

an expanding automatic data processing system .

Of the research studies directed toward the administrative facets of the Revenue Act of 1964, the following constituted the more significant : (a) Changes

in individual deductions, especially the impact of the

new minimum standard deductions ; (b) optional tax

tables ; (c) withholding tax tables ; and (d) the timing of the reduced rate of withholding under the

Act.

To provide information for meeting operating and

compliance problems, surveys were made of (a) taxpayer compliance in reporting capital gains on selected .

real estate transactions; (b) the manner and extent to

which taxpayer identification numbers were reported

on information returns by payers for calendar year

1963 ; and (c) taxpayer compliance in reporting intercst income from redemptions of Series E bonds . Addi.

tionally, work was continued on the more effective utilization of information documents on two fronts : (a)

Completion of the initial phase of an experimental program begun last year to furnish a comprehensive system of compliance follow-up on apparent discrepancies

resulting from computer comparisons of income shown

on information documents with that reported on tax

returns ; and (b) development of plans for the improve .

ment of information documents to permit their more

effective utilization by the automatic data processing

system and by reporting entities .

Numerous studies designed to furnish the basis for

refining the administrative operations of the Service

included (a) development of a method for estimating

future separations from field executive positions ; (b)

an extensive analysis of the steps taken by the Service to

strengthen its capability of coping with the cvcr-mount~

ing volume and complexity of paperwork inherent to

the administration of the Federal revenue system ; and

(c) a survey of tax practitioners' attitudes with respect

to the effectiveness of key administrative policies and

practices of the Service.

STATISTICAL REPORTIN G

The ever-growing volume of statistical data prepared

and published by the Service in the Statistics of Income

series, as required by Section 6108 of the Internal

Revenue Code of 1954, continued during 1964 to provide information about the operation of our tax system .

New compilations are providing more sophisticated

data for use in connection with tax administration and

in the analysis of the tax or economic effects of specific

provisions of the Code . The Statistics of Income program measures the response of taxpayers to the admin .

istration of the Federal Tax System and, as a byproduct,

supplies a financial profile of taxpayers based on tax

return data . A list of the Statistics of Income reports

published during the year may be found on page 68 .

The following two tables illustrate some of the over.

all summary information available concerning in&

vidual and business taxpayers, comparing their changing characteristics over a period of 5 years.

39
ANNUAL REPORT as CHAPTER NIN E

Individual Income tax returns: Number of return., sources of income, and itemized deduction .

A . N .rob-trillare ,

hit'l_------------------ ---------------------------- ---------------

--------------------------------------------------------------------

----------------- -------------------------------------------- -----

]zed deductions, total ------------------------------- -----------------

----------------------------------------------------

---------- -------------------------------------------------- :: : :: : :

lard deductiam, total-------------------------------------------------

B . Sources of Ineare .

*x'" o' ej --------------------------------------------- --------

ion. . ----------------------------- -----------------

C . Itemized deductions

ns, total . ------------------------------------------------------------

- -----

on-_ ------------------------------------------------------------

assified as taxable are those reporting income is, after credits .

1961 1962 lliz~ 92E

62,71 2

50,092 12,62D

26,45 1

24 351 2: 100

36,26 1

21; 741 520

2148,70 1

283,37

23:925I

344 7

26 28716

41.66 1

13,111

'7 1'6 :5'7

5,079

4,747

61,49 9

48,583 12,917

25,262

23 258 2:004

36,238

25,9325 ID, 13

266 902

22:630

8 949

23 76 7: ..0

38,391

led

lenern . Yea r

(Thousands )

61,028

4

12':9'67I

24,083

22:8185 1 98

36,945

21 87

0696

(Million delta.)

329,961 315,46G

257 918

21 :072

8 966

Z2, 23'1 1

(Millie . dDile.)

60,271

47,497 12,77 4

-

22,510

20 761 1 :74 9

37,76 1

26 736

11 :02 6

305,095

247 370

21:4IS3

9, 3 6

20; 247554

1958

59, M

45,652 13,433

20,811

-

19 054 1:758

38,274

26 598

11:675

281,154

227,551

14

"S:1'32

149:333 1

69

35,313 32.017 27,49 8

1

0. :4'

2J 1. 7

b"- S

:

6 "IX I UE

5 4 :294

4 3,771

A. N ..b ., .fInairessir .1une ,

Total business rii-------------------------------------------------------------- ---

Corporations.. .

Sole propristorrKips .------------------------- ---------------------------------

Partnerships .. . . ...--------------------------------------------------------------

Business returns with net praft--------------------------------------------------------

Corroorstions._ ----------------- Sole proprietorships --------------

Partnerabilu---- _ ----------------------------------------------

Business returns without not profit -----------------------------------------------------

B . Buslorms receipts

PLANNING ACTIVITIES

Receipts and profits reported by businesse s

Total buslinen receipts ------------------------------------------------------------

Ce

Wr.1*Pr-1fP11rn%F -------------

BullPartnerships_ --------------------------------------------- ----

ness returns with net fitpfit_ ----------------------------------------------- -----

Cofpoxtlors --------------------------------- :_ :_

Sole p%ietorshipa. ----------------------

Partners ps -----------------------------------------------

Business returns without not profiL. ----------------------- ---------- ---------

C. Birsimes profift

Net profit, Ian Io n

Total business profits . .---------------------------------------------------------------

Corporations .

`S-a1r`frPe'r`s!hli!b"`hIpa_------------------------- -------------- ---------- ----------- :

Business ratures with net profit . --- N - a - I -

pro

.

fit

-----------------------------------------

Coriparrations. --------------------------------------------- ----------------------

Sole i8tDrahip- --------------------------

partnership Prop, ------------------ -----------------

Net Io n

Business returns without net profit_---------------------------------------------------

l9G2-631

1 I'll-.2 1-1 11-9

(Th.unrid.)

11,393

1 . 2G8

1329' 83

8,747

783 7,247. 1.

2,636

1,145,845

$95,120

178,420

72,304

1,004,338

780 433

1 59 :532

64,37 3

141,507

82 .01 4

49, 606

238 ':51113

93 .IG2

56,248

2~7 :117 '46

11,148

11,371

1 190 9:249329

8,737

716 7.211

723

2,634

1,068,337

.823 .943

170,981

, 73,41 3

926,229

709 251

151~761

65,21 7

142,108

77,280

45 . 894

22 G97

8:689

87,904

5~4117 75

9,746

, 111,1124

I .... Yea r

11,171

11141 9.090

941

8,517

670

1,117319

2,654

(Milli. . delta.)

1,046,819

802 791

171:251

12,771

902,404

685 692

151:837

&4,875

144,416

(Million delta.)

72,932

43,505

21 067

8:360

94.024

1 191 24:326

9,373

11,092

11,166

1,074 9,14

.11

8,649

671 7,127509

2,517

1,026,166

772 915

176:20

77 047f

908,78 7

G82 186

15669: 872783

1

117,379

preliminary data.

Revised .

Note.-The Income year 1962-63 covers secoorting periods ended July 1962 through June 1963. Other income years cover enrFespanding pariods.

77,159

46,797

21 517

8:845

36,080

ll24:,6,51

9,7219

8,922

10,744

99D 8, a m

954

8,532

-

7,155 765

2,212

93a,228

61696 594

78,23 3:3995

815,117

599 576

1467', 452

8 089

123,111

'67,950

13

21:'7 "

8,649

76,317

13,490

23,339

9,487

11,367

4 1
ANNUAL REPORT

As part oI f t1le Statistics of Income Program, th e

Service has wvcloped tax models for use in improving

the quality and timeliness of estimates of the revenue

effect of changes in tax law. The tax model is asentially a sample of tax returns on magnetic tape which

can be manipulated by a computer to simulate changes

in the rules governing tire computation of income tax .

A pilot project, using 1960 individual income tax returns, was successfully clplrnxi and used - an aid

in developing some of r

.,isi .ns of the Revenue

Act f 1964 A;mojnV.visions under consideration for which rrLc 0 m o

-

~iovidcd estimates of the

effect were red 'd tax rates and a minimum standard

deduction . Both of there features were incorporated

into the new Revenue Act . A more comprehensive

project using 1962 returns is now under development.

Under the terms of Sections 7515 and 7809 of the

Internal Revenue Code as amended by Public Uw 87-

870 (87th Cong ., 2d sess.) the Service has been permitted to receive reimbursement for special studies and

compilations furnished to private organizations and

non-Fedcral Government, agencies . The Service may

prepare special statistical studies and compilations involving data from tax returns and use the payments to

reimburse the appropriation which bears the cost of

such work . The authority to make these studies and

compilations is evidence of Congressional recognition

of the wealth of statistical information available on tax

returns and related documents . The requests for reimbursable studies consist of two categorics-copics of

material from the Source Book of Statistics of Income

and special studies .

During 1964, of 30 requests for studies received,

about one-half were rejected. Eleven projects were

undertaken during the year and five projects were completed. The estimated cost of the completed projects

at CHAPTER NIN E

ranges from $350 to $2,000. Several projects proposed

would cost as much as $25,000. Ile major users have

been universities, State agencies, private individuals,

companies, and research organizations . An example

of one of the larger projects is the one for the, State

of New York, Department of Taxation and Fixiance,

which will provide a summary of sources of ."income,

deductions, exemptions, taxes, and other items from

1962 Forms 1040 and 1040A filed by New York taxpayers. In addition, 84 requests for material from the

Source Book of Statistics of Income were filled, consisting of approximately 2,400 photostats or microfilm

prints and 54 rolls of microfilm .

The 1961 Individual Income Tax Return5r"rt prescored new statistics showing separately gross rents

and related expenses, interest income classified as to

type of payer, and income and tax by tax rates . In

the U .S . Business Tax Return5report for 1961-62, new

data for unincorporated businesses included ratio dis .

tributions for cost of goods sold to business receipts and

inventories to purchases and the frequency with which

selected income statement items were reported. Also,

for partnerships, the reporting frequency of certain

balance sheet items was included . In the corporation

area for 1960-61, two new ratio-size distributions were

introduced to show the changes between beginningand-ending inventories and to show the relationship

between net worth and total assets . In addition, the

following table presents data which will appear for the

first time in the 1961-62 Corporation Income Tax

Returrpreport. Of interest is the fact that almost 50

percent of the total corporate income tax was paid by

274 corporations, each of whose tax totaled $10 million

or over. The chart on the next page visually demonstrates the preponderance of taxes paid by the small

number of large corporations.

Corporation income tax returns: Number of returns, total assets, and income tax, by size of income tax, 1961-62

Percent of total

Number aff

siro Of income tax returns Total assets Income tax Number of

return, Total mo.t. Income tax

Return, the, than For. I 12D-S, total -------------------------- ---------- 1, D84, 238 1, 27~76-1m`,-,V 1.111,119, W ioo.o IDDA loo. o

with net income, total. . . ._ -------------------------------------------- ___1AL772 1,078,879,749 22,186,771 59.7 94 .4 IDDA

Taxable, total. . . . . . . . . . . . . . .. . .. . . 553,628 1, DOI, 559,633 22,186,771 51.1 78 .3 I(VA

Under $5,000 -------------------------------------------------- -

=

38 ou 2 r 68 393 046 452 D47 35.2 5 .3 2. 0 I under $10,000 -------------------------------------------- 86:338

46 :129 :965 558:657 11.1), 3 7

$10,000 no., $15.0,100 -------------------------------------- 1. ,

- -

21 060 19 477 194 246,984 1 .9

1 :5

1. ,

nd:, ---- I --------------- ----- -

I'o:':_ :: : :: :::_

r 11:079 14 :816 :291 186,372 I .o 1.2 . 8

$20 01) no 25 000

$25,000 under $50,ODO . ---------------------------------------- -------- _ ------

7 876

J,:102

13 530 848

37 :524 :352

17, 1:3.11

2o

. 7

1 .8 1. 1

2.9

. 8

3. 0 $1,1 und

% "'e _ 370 42 837,224 793,692 Lo 3.3 3. 6

un

der $2 M6 : ---------- -

12o-ooo

:

1

If

oo

5 1:

504,842 1 249,022 7 .0

6

5. $221:l nd:;

u 13 --- ------- 6'7ff ::: - -

2,97G 44 550 982 1 D32 266 .3 3.5 4 . 7

1 rat 5oo o

no $I.o o D .

1 000 ----- ---------------- 1 .1)[0,0DO und r $10,000 ---- --------- --------------- ... ..------- - 1 :11I.8s

34

56 '1112 23 !132'1220

~2

1

:oI82~9:olll

5 .2I

ur4. 1

.4

1: $ ::

D.M.1100 cu -------------------- ---------------- 274 371:D60,037_ 10,615,102 0 29.0 47 . 8

Nontaxable.- . ---------------------------------------- -------- 94, 14i 77,32D,116 ----------- 8.7 6.1 )

Without m! incom., LOW ---------- . .. ... ..................... 436,466 199,989,053 1,286 40.3 15. 6

I Len than

NDI-Th, income Year 0 .05 percent. 1961-62 .,or, exuantiol perhods ended July 1961 through ).no 1962.

42

Percent

100 -

5 0

0

95 .0

PLANNING ACTIVITIE S

NUMBER OF CORPORATION RETURNS,- TOTAL ASSETS, AND INCOME TAX

AS A PERCENT OF TOTAL, BY SIZE OF INCOME TAX, 1961-42

Tax under $20,000 2

'Excludes Form 1120-S returns .

3 Includes returns with no income tax .

Tax $20,000 to $250,000

The Treasury-Internal Revenue Service Committee

on Statistics was established in 1962 to advise Service

officials as to the current needs for tax data of the principal users of Statistics of Income. It also provides tcch~

nical advice and guidance regarding the standards of

quality and timeliness which should be maintained in

producing Statistics of Income . In accordance with the

provisions of Executive Order 11007, the Committee

was continued for a 2-year period-July 1, 1963, to I Line

30, 1965 . The names and affiliations of the members of

the Committee, composed of recognized scholars and

principal users of the Statistics of Income publications,

are as follows : Harvey E . Brazer, University of Michigan ; Warren N. Cordell, A. C . Nielsen Co . ; W. R.

Currie, California Department of Finance (alternateSidney Glazer, New Jersey Division of Taxation) ;

Robert Eisner, Northwestern University ; Irwin Friend,

Tax $250,000 and over

University of Pennsylvania ; George Jaszi, Office of

Business Economics, Department of Commerce ; James

W . Knowles, joint Economic Committee (alterri

Alan Murray) ; Raymond Nassimbene, Office of Statistical Standards, Bureau of the Budget ; Alice M .

Rivlin, Brookings Institution ; J . A . Stockfisch, Office

of Tax Analysis, Treasury Department (alternateGabriel G. Rudney) ; James H . Symons, joint Committee on Internal Revenue Taxation ; and Norman B.

Ture, National Bureau of Economic Research .

The group met on November 18,1963, at which time

there was a careful review of the statistical program

and an evaluation of proposed changes and rccommcn~

clarions regarding selected courses of action . The group

offered advice on how the data published might be of

greater use and also suggested new types of information

that might be tabulated .

43

tl
10

Mahagement Activities

GENERAL

During 1964, the Service continued its efforts to promore economy of operations through the reduction of

costs and the optimum Utilization of resources . The

most significant cost reductions were effected through

various management improvement projects and substantial savings were realized . Improvements in personnel and facilities management contributed mainly

to better resources utilization .

In addition to improving operational economy, the

Service also made progress in its nondiscrimination

program and continued with renewed energy and success its efforts to maintain employee integrity at a

high level .

MAJOR MANAGEMENT IMPROVEMENTS

GENERAL.-TbC attention given the management

program, and the vigor of leadership exercised by managcment officials at all levels, is demonstrated by the

quantity and quality of major management improvement projects undertaken and completed during the

year . On June 30, 1964, there were approximately 100

improvement projects scheduled or in process which

were of sufficient scope, depth and potential impact to

warrant control by, and periodic reporting to, top management . Eleven individual management improvement actions were completed, each of which resulted,

or will result, in annual savings in excess of $100,000.

Improvements in the management of operations-approved or implerricrited-will eventually result in recurring annual benefits of approximately $9.8 million .

In addition, nonrecurring benefits exceeded $1 million,

and savings to other agencies totaled $5 .1 million.

Thus, the total of savings in all categories exceeded

$15 .8 million .

LEADERSHIP AND SUPPORT .-Top management leadership and support of management improvement objectives was evidenced in several forms at all levels of the

Service during the year. Illustratively :

*The Commissioner and Deputy Commissioner

have continued to stress the importance of systematically

appraising and improving work operations . Resources

utilization (including manpower control and utilization) has been the main topic at two joint conferences of top National Office and field officials .

0 The Deputy Commissioner met with assistant

commissioners to review implementation of rccommendations of the Committee on Resources Utilization, and to explore other major Service management

improvement activities.

*Several informational documents (pamphlets,

speeches, reports, etc.) were issued on resources utilization, manpower utilization, and management improvemerit, together with program directives tailoring man .

agement improvement to the specific characteristics of

certain functional activities .

*Special Resources Utilization task forces were

established in several regions to study utilization problems and to recommend better continuing arrangements for resources utilization .

0 District and service center officials served on regionwide and Servicewide task forces in pursuit of solutions

to complex management problems and optimum utilization of resources.

COORDINATION AND COOPERATION WITH OTHER

BUREWS AND AGENCIES.-The need for developing

close working relationships with other Treasury burcaus and other Government agencies in the interests

of reducing costs and increasing the unity and effectiveness of Government services was reemphasized .

Field officials of the Service actively participated on

Federal executive boards' and similar organizations ;

four of these boards were chaired by Service field

officials, and three boards will be headed by regional

commissioners next year.

One of the more noteworthy examples involved

cooperation with the Census Bureau in conducting

the 1963 economic census. By using information furDished by the Service, the Census Bureau was able to

conduct this census by mail instead of by sending

enumerators throughout the United States to collect information in person ; in the case of small businesses,

information provided by the Service precluded the

necessity of mailing out report forms and controlling

their return . These services, plus coding small business reports for standard industry classification, saved

the Census Bureau approximately $5.1 million.

COMMITTEE OF RESOURCES UTILIZATION.-Several of

the more significant management improvement accomplishments stemmed from the recommendations

made by the Commissioner's Committee on Resources

Utilization . The objective of these recommendations

was to effect optimum utilization of resources through

improvements in organization structure and systems

MANAGEMENT ACTIVITIE S

and procedures, as well as through development and

implementation Of adequate machinery (methods,

techniques, criteria) by which the Service is assured

'hat manpower is advantageously controlled and utilized. All but 12 of the 72 recommendations of the

Committee on Resources Utilization have been approved ; many of its recommendations have been fully

implemented and many others have been partially implemented or were under active study at the end of

the year .

Two committee-originated studies, completed during

the year, are especially noteworthy . One dealt with

ways and means of minimizing duplication of effort in

work performed by the Office of the Assistant Commissioner (Technical) and the Chief Counsel . The other

was concerned with the entire informal conference

function . These studies are briefly described below.

CHIEF COUNSEL-TECHNICAL SURVEY .-ThiS survey

was concerned with the regulations, legislation, and

ruling functions being carried out by the Office of Chief

Counsel and the Office of the Assistant Commissioner

(Technical).

Principal changes Stemming from recommendations

of the study group are:

(a) Responsibility for dcvtloping regulations is to

be centered in the Legislation and Regulations Division

of the Chief Counsel's Office. The change will give

this Division the basic responsibility for representing

the Commissioner in connection with the Administration's tax legislative program, and for drafting legislation and developing regulations . Regulations will be

reviewed for administrative feasibility and adequacy by

the Office of the Assistant Commissioner (Technical) .

(b) Basic responsibility for rulings continues with

the Tax Rulings Division in the Office of the Assistant

Commissioner (Technical) . The Chief Counsel's

review of rulings will be limited to the more important

or complex rulings . Informal counseling by Chief

Counsel rather than formal referral of most rulings will

be encouraged .

These changes are . expected to provide more effective

and efficient tax administration with estimated net savings of 86 man-years costed at $814,000 .

INFORMAL CONFERENCE PROCEDURE .-A task force

comprised of audit and appellate personnel from the

National Office and various field offices studied the

entire informal conference function . Changes were

recommended which provide for a comprehensive revision of conference procedures and instructions in

order to more effectively utilize Service resources and

to improve services to taxpayers . The majority of

these recommendations are being adopted, and implementation is scheduled for 1965 .

Changes include procedural revisions which will

eliminate the requirement for the presence of the exarnining officer at the conference, eliminate unnecessary

conferences, reduce the number of reviews, ~nd streamline reporting requirements.

It is estimated that annual recurring savings of .76

man-years costed at $924,500 will be realized as a result

of this major procedural change .

REPORTS PROGRAM .-The Reports Program continues

to influence the design of reporting systems and the

cost of reports throughout the Service. It is designed

to provide a systematic approach to the determination

of data required for management at all levels of the

Service and the development of integrated reporting

systems to supply the necessary information at the

least cost. Emphasis is placed on utilizing the Service's data processing system to the extent feasible .

Since 1961 annual reporting costs have steadily declined from $15.8 million to $13 .3 million, while at the

same time providing managers with better and more

timely information for planning, controlling, and eval .

uating operations .

In 1964 a new dimension was added to the Program .

Provision was made for the National Office Reports

Division to render independent across-the-board analyses of current operating programs . Such .analyscs rcflect the interrelationship of programs and provide top

management with a basis for appraising operations in

terms of the Service meeting its overall goals and

objectives.

REORGANIZATIONS

REALINEMENT or FIELD OFFICES .-The realinement

of Internal Revenue Service field offices as described in

last year's report 'was placed in effect on January 1,

1964 . The net result of this realinement was a reduction in the number of regions from 9 to 8, a rcduc.

tion in the number of districts from 62 to 58, and a

reduction of proposed Service Centers from 9 to 7.

Implementation of this reorganization is substantially

complete with only a relatively few personnel changes

yet to take place . Experience indiaites that annual

recurring savings, originally estimated at $3 .5 million,

will be increased by approximately $338,000.

REORGANIZATION or NATIONAL OFFICE OF CHIEF

COUNSEL-On March 24, 1964, Sheldon S . Cohen,

Chief Counsel, announced the following reorganization

of the National Office of the Chief Counsel, effective

April 1, 1964 :

( 1) Elimination of the intermediate supervisory level

between the Chief Counsel and the directors of the two

technical divisions. This was done by abolishing the

Associate and Assistant Chief Counsel (Technical)

positions and establishing an Executive Assistant's position to handle staff problems in the technical area .

(2) Shifting direct control of the joint Committee

44 45

Division to the Chief Counsel.
I

ANNUAL REPORT & CHAPTER TE N

(3) Establishment of Director, Policy and Research

committee.

The purpose of the reorganiz2tion is to provide a

more efficient and effective organization in terms of

maximum utilization of top legal and executive talent.

PERSONNEL

During 1964 the personnel program of the Servic e

emphasized assistance to managers in achieving the

fullest utilization of available human resources, and

accomplishment of program objectives by efficient and

economical use of manpower . New measures were

instituted to control grade structure and insure better

control of work assignments and their relation to superior qualifications as a prerequisite for promotion .

Personnel technicians participated in financial planning, at all levels, to provide manponwer and pos

*

ition

classification advice relating to proposed Changes .

Within the personnel organization, advances were made

in streamlining the organization and pr6iding for

more automation of personnel processes and reports,

in the interests of reducing costs and improving

operations.

EMPLoyEE-MANAGEMENT RELATIONS~Empbasis was

placed on strengthening management's relationships

with Service employees and with organized employee

groups at local levels .

Employee organizations obtained the right to exclusively represent 5,438 employees bringing the total to

18,476 employees in 37 offices. A seminar workshop

was conducted for key regional and district personnel

to provide more effective dealing with employee organimitions in negotiating agreements under-Executive

Order 10988.

ATTITUDE SURVEYS.-Attitude surveys enabled employees to transmit their ideas End opinions directly

to management, which is using them to improve operation of the Service and its personnel programs and

practices .

Surveys were conducted in the National Office (3,044

respondents) and in the Cincinnati District (811 respondents) . Although there were exceptions in certain divisions or Occupational groups, employers generally were satisfied with the work they perform, their

coworkers, their immediate supervisors, and benefits.

Action has been taken to correct varying degrees of

dissatisfaction with promotion opportunities, chances

to participate in decisions, communications, and work

pressures .

RECRUITMENT .-In a search for possible ways to limprove our college recruiting campaign the Service sent

questionnaires to more than 1,500 high quality applicants who had dropped out of the competition for

appointment to ask them why they had lost interest .

The preponderance of replies said : "Starting salary too

low" (46 percent) and "Too much time elapsed before

job offer was made" (35 percent) . As a byprocluct~

the survey rekindled the interest of many of the "getaways." More than 36 percent said they wer; still

interested in employment and many expressed .1a -

able comment about the survey.

The general pay increase for Federal employees in

January 1964, has helped to alleviate the salary problem

indicated by the survey . In addition, pay rates for

Federal accountants in California in grades GS-5, 7,

and 9 were raised to make them reasonably comparable

with pay rates for accountants in private industry .

Within the limits of the appropriations process, the

Service has redoubled its efforts to make early job

offers to college seniors while they am still in school .

Man-years realized during each of the past 2 years

and employees on the rolls at the close of 1963 and

1964 are shown in the following table:

Personnel summary

Ucation and type

S.M., total----------------------

permanent--------------------

Temporary. -------------------

National Office-------------------------

Field Service, total 1. ~ ------------

Dail pline .i . ,to .1 -----------

Collectio

n

. totit!----------------

R... no .

Other ------- --

Audit, total ------------------------

R.... . .dents --- -----

Office an flo . and is . . rl.

clans . ----------------------

other -------------------------

1.1 .11in-Julal-------------------

specl.l .gemu_ --------------

other -------------------------

Alcohol and tobacco tax, Intel_ ------

t-till-------------------

Ins"'t-ra---------------------

Stmak.pin-iDug--------------

Other .------------------------

Appellate, total --------------------

Teihnical advisors. -------------

Audito-----------------------

Other -------------------------

AcIrrinlWatin-...... _ ---- -----

Regional Counsel_----------------

Regional inspection -----------------

111-yars

.allie d

1964

61,059

57 020

4 :039

13 839

57: 220

16,600

10.21 3

3 8.7

20,015

12,586

3,

4,2112 '47

2'320 I ' 71 8

603

2,779

983

450

46

986

1963

59,711

56 403

3: 308

13 657

56 : 05 4

15 .055

10,022

IS

; 3"

3 701

19,775

12,469

3: 12'

4 78

1,687

594

2.844

1,002

442

50D

900

1,434 1,417

638 145

650

2,522

7"

592

625

145

647

2' 485 770

605

Number on .11,

at 'Iox . of yea r

1964

59,357

56 594

2: 763

3 753

55:604

15 304

10: 234

13 99 : 2"

0

12,365

3 " 4:33'5

1,71 .3184

604

2,737

970 433

443

891

1,462

648

148

666

2,111 7,7

602

1963

59,496

56 374

3 :11 2

3,561

55,925

15 46B

10 :26 3

IS

374

3 :899

19,943

12,442

3 : '17

4 334

2 .299

Will

1, 81 1

"0437

494

893

1.417

6'147

642

2,456

760

608

I Includes terminal leave man-years for entire Service.

I Includes Office of Int-ationht O~,uxtl.rx.

x Include, employee. .,. locally (3 in 1964 and 4 in 1963).

NoNDISCRIMINATION PROGRAM.-The Nondiscrimination Program, which Calls for special emphasis on the

employment of women in high level professional and

management positions, the physically and mentall y

46

MANAGEMENT ACTIVITIE S

handicapped, and minority group members, received

increased support and action . All phases of this Program were featured in a series of top management

issuances directed toward more active participation and

policy promotion throughout the Service . As a result,

a greater awareness of the importance of the Program

has been created at 211 levels of management .

This increased awareness and support was evidenced

in a number of ways with gratifying results in all areas .

For example, an employment survey of the more than

650 minority group employees in the National Office

was conducted to determine whether any were working in positions below their qualifications and skills .

Among the 185 replies from the surveyed group, there

appeared to be 55 cases of possible underutilization .

Of these, eight have been promoted and several others

are being considered for advancement to positions for

which they qualify. Also, the Regional Commission.

ers' End District Directors' conference in February

1964, featured discussions, conducted by a represent,

ative of the National Conference of Christians and

Jews, of the Equal Employment Opportunity Program .

Case studies involving hypothetical minority group

situations were developed for this conference and used

in subsequent discussion sessions .

Other significant actions taken in the minority group

area were : (1) procedures used by deputy employment

policy officers to investigate and settle complaints of

discrimination were refined and made more sophisticated ; (2) a system was developed by the depuq employment policy officer for the evaluation of the efforts

of field offices in carrying out the program ; (3) minority group members are continuing to enter new occupations and district offices .

Vigorous efforts to further employment and promotion of qualified women have increased to 266 the total

of women employed at the GS-12 level or higher .

The program for the employment of the mentally

retarded is also proving successful with 4 qualified

individuals already placed in appropriate positions in

the National Office.

TAx TRAINEE PROGRAM .-The first step was taken

toward a milestone in Federal and Internal Revenue

Service personnel management with the development,

and Civil Service Commission approval, of a program

for recruiting, examining, and training high-quality

high school graduates for the Service's scmitechnical

Occupations. A pilot program is being conducted in

the Philadelphia Service Center during 1964 .

PERFORMANCE EVALUATION GUIDELINES .-The Service's performance appraisal practices were greatly

simplified. Performance evaluation guidelines were

revised to eliminate the mandatory requirement for

written performance standards, establish a Servicewide

multipurpose appraisal program (appraisal for acceptable level of competence, career development, and in .

centive awards), and provide for rating employee per.

formance annually near the anniversary date of the

within-grade increase .

CAREER PROGRAms .-This year two new career programs were established in alcohol and tobacco tax and

appellate activities . These programs are the first to

identify and prepare Candidates for supervisory and

managerial positions within a functional area . The

programs are designed to provide a systematic method

fOr assuring a continuing supply of carefully selected

and well-trained supervisors and managers in these

activities by first identifying, and then training in advance, individuals demonstrating potential for

advancement .

In addition, a promotion plan was developed for

journeyman revenue officers which includes provisions

for the advance identification of needs, panel screening

of candidates for promotion, and special development

and trial periods prior to promotion .

Also, two major studies were undertaken to improve

further the methods used for making supervisory and

executive selections in the Service.

TRANSITION To AUTOMATIC DATA PROCESSINC~A

full-scale review was made of the program for the rcdeployment of employees affected by the conversion to

automatic data processing. This review was conducted

by sending questionnaires to regions and districts asking for comments and recommendations, chartering a

task force to study and make a report on the recommendations, and holding a seminar to review the data

and arrive at common understandings on the task

force's recommendation .

Because the time period for conversion to automatic

data processing was extended, one of the chief problems

identified during the review was the need for an employment technique to provide a stable transition

'

al

work force . As a result, the Civil Service Commission

gave the Service "term appointment authority ." This

type of appointment gave management an advantage

in that term appointments can be extended up to 4

years. (Before, temporary limited appointments rc .

stricted employment to 3 years and required separation

and reappointment each year.) Also, appointments of

this type will lower turnover and training costs . Term

appointments will give employees substantial advantages over temporary employment, such as eligibility

for longevity pay increases, group health and life insurancc benefits, and promotions.

PERSONNEL MANAGEMENT INFORMATION BY COMPUTER .-This year a computer-produced listing of basic

employee data known as the Employee Service Record

Report was implemented . This report provides both

staff and operating officials at all organizational levels

with basic employee and staffing data . It also reduces

47
ANNUAL REPORT * CHAPTER TE N

anual record keeping and reporting, in

oviding more accurate and timely in-

,L STANDARDs .-Development of occurds continues to play an important role

character of the Service's employment .

cvcmcnt this year was completion of a

,ide project which will include all crim-

.- positions under the same qualification

-vise cert.in classification standards in- i

and tobacco tax investigator . A single

ichure, an interburcau recruiting proLster training agreement will also be deher major standards development was

of a study of Service Center Tax Exam-

. The results of this study are being

new qualification standards.

VARDS .-Comparing 1964 with 1963, the

gestions, received increased 90 percent

; adopted increased 61 percent . Esti-

'rom suggestions rose from $224,032 to

03 percent . Savings connected with

ards increased 28 percent.

OF MANPOWER AND CONTROL OF GRADE

mong significant achievements of 1964

!nt of a new procedure for estimating

needed grade structure changes. The

tliminatcs the need for the field to make

ne-consurning estimates, and provides

: to receive careful classification and

zation review before being acted upon.

of a series of promotion criteria which

ty of the employee to perform successher grade and availability of sufficient

her grade to warrant the need for th e

if projects, working jointly with interto develop guides for determining the

cial agent and internal revenue agent

tides will enable the Service to plan Our

Ater, assuze more accurate classification

i these oc:cupations, and help establish

n of manpower at appropriate grad e

3f an intensified postreview program

;ification and manpower utilization at

nd field levels .

MMISSIONER WHITE HONORED By NA-

!RNICE LEACUE~B . Frank White, Be-

;ioner for the Southwest Region, was

,lational Civil Service League as one of

;overnmcrtt administrators in the counie second Internal Revenue official to

.cr Service Award . Deputy Commissioner Harding was the recipient of this high honor

in 1962 .

Mr. White has risen from the bottom to the top

of the Civil Service grades in his 25 years of Government service . His accomplishments as Regional .jCommissioner include a series of improvements ir~ field

operations, many of which have been installed Orcoughout the Service. Before his appointment as Regional

Commissioner, ~he also served as Special Adviser to

the Commissioner and was a prime architect of the 1953

reorganization of the Service . Notable among his

achievements was his recent assignment to assist the

Government of Turkey under the Scivice's Foreign

Tax Assistance Program .

TRAINING

In all training programs, increased emphasis wa s

given to strengthening the voluntary tax Compliance

system and maintaining the highest standards of

employee integrity .

FOREIGN TAx AssisTANcE.-In cooperation with the

Foreign Tax Assistance Staff the Training Division

developed a 17-week training program for officials

chosen for potential assignments as tax advisers to the

governments of Latin American countries. Graduates

of the program constitute a tax assistance reserve force

available as needs arise.

A representative of the Training Division was sent

to El Salvador to design and inaugurate a training

program for tax auditors, and to Chile to review the

progress made by the training organization set up in

1961 .

STATE TAx AssisTANcF .-In June 1964, Service officials met with State tax representatives under die

auspices of the National Association of Tax Administrators . As a result of the ensuing discussion on

Public Law 87-870, which permits Federal Govern.

ment training assistance to the States, a survey of State

needs was decided upon . It is expected that informa,

tion resulting from the survey (which is to be con~

dueled by the National Association) Will provide a firm

basis for providing assistance on a practical, economic

basis.

AUTOMATIC DATA PROCESSING .-The, broadening impact of computer technology led to the development of

new courses in the automatic data processing area .

"Production Management" courses were prepared for

supervisors of the Service Center functions of document analysis, transcription, and error resolution .

New courses were also announced in ADP precepts

and procedures, including one covering the operation

of microfilm printers .

NEW TECHNIQUES .-Several "Programed Learning"

courses were selected for testing and evaluation as to

feasibility for Service adoption. Among these were

MANAGEMENT ACTIVITIE S

11 .91... I Commissions, R. F-.k Whit . -iAng the NwIconcol Civil SemiceLeague CcueerSomice AWoird from Mr . Jeorn . J . Couturier,

Executive Director of the League, with Commissioner Caplin looking on.

courses in effective writing, accounting, and program

evaluation and review techniques.

The first experimental Regional Training Center

was set up in the Western Region, and a director was

selected to begin operations planning for the National

Training Center to be opened in the fall of 1964 . Detailed planning was also undertaken for the second field

Training Center, to be located in the Central Region.

TRAINING BY CORRESPONDENCE .-The correspondence

course program continued to be a popular means of

self-development . More than 90,000 student answer

papers were submitted for grading during the year .

Monitored final exami

.

nations were given to 3,421

employees .

SPECIAL AGENT TRAIN ING .-Substantial refinements

in training programs for newly appointed special

agents were made in 1964, covering course content and

presentation. This included development of a new

5-week Basic Income Tax Law course which will be

given in lieu of the present 9-week's course . In addition, revisions to the curriculum of the Treasury Law

Enforcement School permitted a reduction in the

length of the school from 6 to 5 weeks .

INTERNAL RLvENuE AGENT TRAINING .-The training

program for newly recruited agents was expanded to

include additional instruction in Corporate tax law .

This increased the capabilities of the new agents and

permitted greater latitude in the types of Cases assigned .

An exempt organization instructor's workshop was

held in order to provide for the increased dissemination

of the technical skills and knowledges needed for in .

creased audit coverage in the exempt organization area .

Classes will be conducted early in 1965 for all personnel

primarily engaged in examining these returns.

Special instruction in the administration of travel and

entertainment rules and regulations was given to Serv .

ice examining personnel. Also, special training mate.

rial was distributed on the various provisions of the

Revenue Act of 1964 .

ADVANCED TRAINING FOR ENGINEERS .-An advanced

training course for new engineers was conducted in

the National Office from March 16 to 27, 1964. Twen .

ty-six engineers selected from those hired during the

past 2 years were in attendance.

The material presented in this training course was

geared to engineers having at least I year's experience

in the Internal Revenue Service and who had completed prescribed on-the-job training . Evaluation of

49
ANNUAL REPORT o CHAPTER TE N

this training by the participants indicated that they

considered the material presented to be of substantial

advantage to them .

INTERNAL TECHNICAL DEVELOPMENT AND

GUIDANCE

TAX BrarEs .-This is a technical digest issued every

4 weeks to revenue agents and office auditors in the

field and to other technical personnel in the National

office. "Tax Briefs" is a convenient, timesaving means

of keeping these technicians abreast of the latest developments in their field . It permits them to readily

identify those matters which affect their particular areas

of work and lessens the necessity for studying commercial letters and similar technical publications . It reports currently, in digest form, selected Court decisions,

published sulings, and other technical developments.

All important favorable court decisions are reported as

well as important adverse decisions of the Tax Court

when acquiescence or nonacquiescence is announced .

Also, important adverse decisions of other courts may

be included with a cautionary statement regarding the

Commissioner's position.

TOBACCO TAX GUIDE, IRS Publication No. 464, a

compilation of reference material dealing with Federal taxes on tobacco products and cigarette papers and

tubes and the related procedures for production and

handling of these articles, has been devised as a work

tool for alcohol and tobacco tax personnel .

ENGINEERING INSTITUTE .-An Engineering Institute

was held in Washington, D .C., for 4 days starting May

25, 1964 . All engineers in the Service, both from the

field and the National Office, were in attendance . Ile

last such institute was held in Washington in May

1961 .

Some of the major topics discussed were :

1 . Application of Revenue Procedure 62-21, Depreciation Guidelines and Rules, to years prior to the

effective date of the procedure .

2 . Ordinary treatment processes for minerals under

the Gore amendment.

3. Aggregation of mineral properties .

4 . Intangible drilling cost in oil and gas properties .

5. Loss from operations, not due to development, in

ABC transactions.

6. Depreciation of underground storage caverns and

treatment of loss on cushion gas.

7. Fair market value of timber for section 631(a) .

8. Valuation of intangible values in mergers and

other corporate transactions involving the transfer of

property .

9 . Retirements and abandonments of assets from

multiple asset accounts.

The evaluation by all participants indicated that the

.meetings were successful and accomplished their purpose.

ANNUAL TE&HNICAL REVIEW INSTITUTE .-This program consists of a series of discussions by field perspnDel of the more important developments in Federal

taxation as described in articles written and issue0 to

the field by experienced National Office technicians.

Serninarlike meetings are held in the field under the

guidance of discussion leaders whose purpose is to give

revenue agents and other technical personnel the benefit of a detailed discussion of the more important and

complex developments as soon as possible after they

arise .

ne articles for the 1963 institutes were distributed

to the field offices early in November 1963. They

explained many difficult topics, such as the SelfEmployed Individuals Tax Retirement Act of 1962 ;

travel, entertainment, and gift expenses ; the investment

credit ; gain from dispositions of certain depreciable

property, and many other developments of equal complexity . A complete set of the articles was furnished

every revenue agent for his future guidance and information.

EARLY EXPLANATION OF NEW LAW, .-Part I of the

Annual Technical Review Institute for 1964 was distributed in late June 1964, in order to provide an early

explanation of the Revenue Act of 1964 . This publication discusses those provisions of the act which are

commonly applicable to noncorporate taxpayers, although many of such provisions are also applicable to

corporate taxpayers . Some of the provisions discussed

in Part I are the new minimum standard deduction ;

deductions for State and local taxes ; the new travel

expense allocation rules, income averaging, and the

unlimited capital loss carryover for individuals.

In addition to providing technical personnel with an

early analysis of the Revenue Act of 1964, issuance of

the 1964 Institute articles in three parts is meant to

facilitate its use in classroom discussions and in answering taxpayer inquiries. Part 2 will discuss those provisions of the 1964 Act not discussed in Part 1, and

Part 3 will discuss other important developments during the fiscal year ended June 30, 1964.

LEGAL HANDBOOK FOR REVENUE OFFICERS.-During

the year the "Legal Reference Guide for Revenue

Officers" was published to replace an earlier document

which was outdated . This publication should aid

those engaged in collecting taxes by providing them

with a compendium of information needed in their

daily activities .

FACILITIES MANAGEMENT

SPACE .-Over the past few years, the Service has

made excellent progress in improving the quality of

50

MANAGEMENT ACTIVITIES

its offices while maintaining one of the best rates of

utilization (average square feet per employee) in Government . One of the major reasons for this progress

has been General Services Administration's accelerated

program of constructing new Federal buildings and'

renovating old ones . Also, the Service has received full

support from General Services Administration, Bureau

of the Budget, and Congress for its space leasing pro~

gram . Although the emphasis up to now has been on

regional and district offices, attention is now being

turned to the smaller offices .

In 1964 the Service space programcontinued to make

advances in major offices throughout the country. Additional space was acquired for 138 offices to relieve

crowded conditions and accommodate staff expansion .

The following large offices were moved into new or

modernized buildings : Brooklyn, Cincinnati, Miami,

San Francisco, Seattle, and Manhattan .

The Service is particularly proud of its new Manhattan office, the largest district headquarters which

houses approximately 3,000 employees. Ile 21-story

building, occupied solely by the Service, marks the

culmination of several years' effort to consolidate operations in one new modern building.

Many of the improvements made in 1964 resulted

from renovation projects. In a number of locations

it was possible to improve both the quality and cffi .

ciency .of an office through simple renovation and rearrangement of partitions . Not only is this a relatively

inexpensive way to improve space quality, but in many

cases it also allows more people to occupy a given

amount of space .

Work is in process to improve office conditions in

Austin, Baltimore, Dallas, Denver, Hollywood, Los

Angeles, Milwaukee, Pittsburgh, Reno, and Salt Lake

City .

Both the Philadelphia and Austin Service Center

buildings were occupied in 1964 . These two buildings,

each containing over 200,000 square feet of floor area,

are the second and third data processing centers to be

built for the Service . Additional processing centers

planned for Lawrence, Mass., and Covington, Ky., and

the IRS Data Center and Regional Training Center at

Detroit, Mich., are now being designed . Funds for

construction of these centers have already been approved

by Congress . A major renovation project under way in

Kansas City, Mo ., is scheduled for completion in

November 1964 . This renovated building will house

our new Kansas City Service Center ,

Although the space program has been generally very

successful, much remains to be done. For example, in

spite of 2 years of effort by General Services Administration, the Service has yet to consolidate its Wilmington District into acceptable quarters . In addi .

tion, unsolved Space problems exist in Indianapolis,

Des Moines, Chicago, Detroit, and Wichita. These

conditions should be improved in 1965 .

Work has begun on modernization of the National

Office building. By 1966, the building will be com~

pletely renovated with improved office facilities, including new lights and air conditioning. The plan will

also make possible new space saving offices and officefurniture arrangements that will accommodate all cmployees in one building.

PROPERTY AND SUPPLY MANAGEMENT PROGRAm .-A

furniture improvement program his brought increased efficiency to 41 large offices . Worn out and

obsolete furniture has been replaced with new, standard

furniture . New furniture arrangement standards have

been developed to give taxpayers long-needed privacy

when personal tax problems arc being discussed . A

joint General Services Administration-Internal Revenue

Service Logistics Plan was developed and effectively

used in the scheduled purchase, storage, and placement

of furniture and the moving of over 20,000 employees

into these new offices with minimum work interrupfions . The Joint Logistics Plan insures coordination

of all details involved in a major move, such as : timely

availability Of Space, detailed plans for utilization, rehabilitation or disposal of old furniture, and procure.

ment of furniture that conforms to established

standards .

Office Machine Standards have been developed to

provide criteria for the selection of such commonly used

machines as typewriters, adding machines, accounting

machines, and calculators. They arc also the basis for

(1) effective assignment, (2) control of utilization, and

(3) long-range replacement planning.

Application of the office machine standards permits

procurement of the least expensive machine which will

effectively do a specific task . This, in turn, led to improved procurement methods through consolidated purchase arrangements with several of the larger machine

manufacturers and resulted in a saving of $128,000, or

9 percent, through maximum quantity discounts .

The Service's motor vehicle travel continues to increase by 5 million miles annually . To provide adequate transportation and most effective use of travel

dollars, the Service is now leasing 1,400 can from the

General Services Administration, for which it pays 7

cents per mile instead of paying the employee 10 cents

per mile for using his personally owned vehicle . This

means a saving of more than $400,000 annually .

A Motor Vehicle Management Handbook was written which enables the Service to control more effectivcly its fleet of Scrvice-owncd and General Services

Administration-leased vehicles .

51
I U

ANNUAL REPORT age CHAPTER TEN

RECORDS AND PAPERWORK MANAGEMENT-71C Scrvice is pioneering in a records administration and

paperwork management field that is rapidly changing

bemuse of new records documentation and reference

concepts evolving under electronic processes and sophisticated information retrieval techniques . During

1964 the Service created, received, and used more records than ever before, and many of these records have

vastly different characteristics from those of prior years.

This year, in the records and paperwork management

program, emphasis was on (1) insuring the creation

and retention of adequate documentary evidence ; (2)

accelcrating records evaluation and disposition activides to cope with growing accumulations of data proccssing input and output documents ; (3) removing from

office space all records and reference material not absolutely essential as daily working tools ; and (4) forms

and correspondence management efforts aimed at providing needed forms and form letters, improving and

standardizing existing ones, and creating better correspondence.

Typical results of such program emphasis are : 1 . Much needed space and equipment, valued at $1 .1

million, were released for reuse by systematic retirement and disposal of more than 230,500 cubic feet of

records . Records holdings and disposition activities

are shown in the following table :

Records holdings and dispoiftion activities

status

On hand July I ------------ ---------- --------------

Disposal -----------------------------------

: --------

w'~Wd; E~ni;; : -------------

0. hand I. . . 30 ------------------------------------

Volume of records

(cubic (W)

1964

583,697

230,538

90.042

140,496

1963

579 .618

252,952

107,301

145,651

603,021 1 583,687

2 . A standardized set of National Office prescribed

public-use form letters Was developed for use by Service

Centers in corresponding with taxpayers . This significant form letter standardization provides a degree of

uniformity for identical taxpayer correspondence that

has never before been attained in the Service . 3 . Under continuing forms development and standardization efforts, district office prescribed forms decreased by 18 .1 percent and regional office prescribed

forms decreased by 1 .6 Percent . National Office pre52

scribed forms increased by 12 .0 percent, thus reflecting

increased standardization of forms, form letters, and

related paperwork procedures at the headquarters office .

Service Center prescribed forms increased by _J2 .7 percent . This increase is a natural result of conversion to

data processing operations, activation of additional service centers, and the necessity for both manual and machirre operations with dual forms, pending total con .

version. In spite of the tremendous increase in service

center forms, there was a servicewide net increase of

only 1 .6 percent in forms and form letter inventory.

Forms development, control, and standardization activities are shown by the following figures :

Forms and form letters

Prescribed by

Current inventory Developed Eliminated

1964 1963 1964 1963 1964 1963

Total -------------- 18,305 18,020 3,305 3,063 2,190 2,433

National Office (... itat

=,urbirs and-

) ---------~j----

Regional offices ~uso by

5,271 4,706 924 1,209 259 474

regional hey quart..

conix,...is ., 2 or ram

district offices) 9,379 9,535 1,434 989 749 1,078 Disl,ict offices (unit by

local district, and their . .bitirdi.irto offil-)

----- .. 2 341

2 ' 858 428 477 945 695 rvia Cmite.. .. . . . . . .. . . 1 :

314 921 619 388

2

7

2

186

FISCAL MANAGEMENT

The Internal Revenue Service appropriation for 1964

totaled $552 million, an increase of $48.9 million over

the 1963 appropriation. The additional funds were

used primarily to finance partially the objectives of the

Long-Range Plan ; to provide for increased cost of current staff maintenance, including pay act increase ; and

for equipment improvement.

The cost of operating the Service during the year was

$551 '2 million compared with $501 .7 million in 1963 .

This is an increase of $49.5 million in actual cost.

Of this increase in overall cost of operation $38 .5

million represents increased salary costs attributable

largely to increased man-year realization ; also included

is $10 .6 million as a result of Phase if of the Pay Act

Increase authorized by Public Law 87-793. Of the

61,170 planned man-years, 61,059 or 99 .8 percent, were

actually !ealized . This is an increase of 1,348 over

the 59,711 man-ycars actually realized in 1963 .

The distribution of obligations in fiscal year 1964 is

shown in the following table : (For more detail by

activity see table 28, p . 99.)

743-871 0-65-5

Tax fraud and special investigations 5 .3 cents

A

Alcohol and tobacco ta

x .

IJ regulatory Work

6 .1 cents

* Includes rulings, technical planning, and special technical

services, 1 .6 ; legal services, 2.4 ; inspection, 1 .5 ; statistical reporting, 0 .8 ; executive direction, 1 .4 .

OBLIGATIONS BY OBJECT OF EXPENOITURE

53

MANAGEMENT ACTIVITIES

OBLIGATIONS BY ACTIVITY
ANNUAL REPORT as CHAPTER TEN

Obligations incurred by Internal Revenue Sewice

(in thousands of dollars)

personnel compensation

Function Total and benefits Dthqr

1963

1964

1 9"

1963

Total. . --------------------------------------- ----------------------- 440,542 -70,6~73 - 60,262

Rulifirs . technical planning, and specal technical services.----------------------- Colloc io u of revenue 1 111 717 711 . . ------------------ ------------- ----------------------

Audit of is, return ----------

------

12

3

-

7

Ed -

77

.7: M.

7.,

153

1

9 190

'

30 7 Tax fraud and special imrostl

-------------- Alcohol a d t b t F t29,297 MINI

86

25,065

429

22 815

I

5:277

4'232

13 :46,8

3 7 n o acco ax rnimu a. e,~,Y 7!11, --------------------------- -

Taxpayer conference, . ppm

33 428

:

32~139 27,691 26:395 ,

5:737 5: 7

.

L -------- -------------- - --- -

a.] services.- ---- - -- - -

----

"13 -91 9

1 7

12 101

11

17 389

:

16 087

1, in

s

1,075

1 ol,

- - - -- -

------------------------------

- mention . .. . . . ----- ------------ : : : :

.

3

7

3

750

12 250

6 937 11:6786 348

.

1

94 9

1 383

. . . . :2,

Statistical reporting- .--------------------------------------- ---- -

fteellon : : : :: : : : : : Executive d

4 62

S

4:

320

3

:9DD 3:256

.

i ...... *728 I:D64

7 :

aa I

6

Goo

6

162

5

.296 1,279 1,304

Reimbursable services tripled in 1964 over 1963.

These are special services performed chiefly for other

Federal Agencies and for Puerto Rico, various States,

and others. The primary increase in 1964, and approx.

imately one-half the yearly total, resulted from tax

advisory services to foreign countries in technical 2SSiStance programs of the Agency for International Development . Most of this effort was directed to Central

and South American nations within the Alliance for

Progress .

During 1964, $1 .2 million were received for services

provided other agencies . Costs to the Service for providing these services are included in the total Service

cost shown above .

Procedures were devised for orderly reporting, ac~

counting, and transfer of resources during implementation of the realinement of field offices which was completed effective January 1, 1964, as planned .

During the year the Set-vice was able to accumulate

about $4 .5 million available funds within the appropriation, while substantially carrying Gut program levels

provided by the appropriation. The most significant

factors in the accumulation of savings resulted from

(1)'realinement of field offices, (2) ADP redeployment

program, (3) savings of funds programed for training

courses planned for incumbents in 1964 but postponed

until later, (4) savings an computer rental resulting

from operational improvement and rental savings directly related to the second 7074 system in the National

Computer Center not going on rental as soon as expected, and (5) other management improvements . Approval was obtained to utilize the $4 .5 million to

purchase computer equipment originally planned for

acquisition in 1965 .

As a first step in implementing the decision of the

Secretary of the Treasury to automate the department

payrolls through the Service's Automatic Data Processing facilities, payrolls of the Office of the Secretary of

the Treasury, Office of International Affairs, and the

Bureau of Narcotics were converted during 1964 .

A study started in 1963, relative to budgeting and

funding for grade stmcture changes, led to issuance

during 1964 of regulations which constituted a sig.

nificant improvement in management and control of

the Service's grade structure and grade structure

changes. The regulations provide the basis for a better

and more uniform understanding of the concepts unde

which the grade structure control program operates

and establishes standardized procedures for planning

and control of the program.

INSPECTION ACTIVITIE S

Inspectionis an independent fact finding organiza .

tion reporting directly to the Commissioner. It was

created to develop information. necessary for management to improve the operations and maintain the integ .

rity of the Service.

Inspection is divided functionally into two divisions,

Internal Audit and Internal Security ; however, major

investigations, such as fraud on the revenue, are closely

coordinated by the two divisions.

INTERNAL AUDIT.-Internal audit has become, since

its inception in the early 1950's, an integral part of the

Service's management control system.

As presently constituted, the Service's internal

.

audit

program provides for an independent review and ap.

praisal of all Service operations as a protective and

constructive service to the Commissioner and all other

levels of management. This broad program covers all

organizations and activities of the Service and includes

a determination as to whether the policies, practices,

procedures and controls at all levels of management

adequately protect the revenue and are being efficiently

and effectively carried out .

The emphasis is on the examination of those org2- -

nizational segments which are most closely connected

54

MANAGEMENT ACTIVITIES

with the collection of the tax revenues and the enforcement of the tax laws. Mom than 90 percent of the

direct internal audit time is expended on collection,

audit, intelligence, appellate, and alcohol and tobacco

tax activities . Particular stress is placed on identification of potential integrity problems .

Many of the findings developed by internal audit

resulted in substantial amounts of direct savings or

additional revenue. Such dollar savings or revenue

producing potential only constitutes one measure of

effectiveness, internal audit's primary contribution to

the Service being reflected through its recommendations

and suggestions in improved operations and strengthened controls and safeguards .

The continuing goal is to bring into proper focus

those conditions that require corrective action, as well

as those activities that have been conducted effectively

and efficiently. Attainment of this goal makes for a

better understanding and utilization of the internal

audit function in the building and the maintenance of

a highly effective and efficient Internal Revenue Service .

INTERNAL SECURITY .-SUCCCSSfUl administration of

the voluntary self-assmment system of taxation depends to a large extent on the integrity and good faith

of the American people, which in turn is based on

their confidence in the integrity and impartiality of the

officers and employees of the Service . To aid management in maintaining this public confidence, the Internal Security Division provides management with

timely, factual, objective information on any matter

that represents a potential thmat to the integrity standards of the Service.

Evidence of the integrity of Service employees is

found in the statistics of investigations based on actual

or suspected attempts by taxpayers or their rcpresentatives to bribe employees of the Service to influence their

actions in tax examinations, tax collections, or other tax

matters pending before the Service. During the year

employees reported 67 such attempts, an increase of 21

over 1963 . There were 8 indictments of taxpayers or

their representatives during the year for bribe attempts, and additional prosecutions are expected in a

number of pending cases. This makes a total of 28

persons indicted for such bribe attempts during the past

3 years . To date 20 persons have been convicted .

Investigations completed during the year totaled

8,221 . In addition, police checks were made on 5,075

employees considered for short-term temporary

appointments .

A tabulation of the various types of investigations and

resulting disciplinary actions follows :

Investigations and disciplinary actions

Type of investigation and actio n

Total investigations closed. --------------------------

Personnel in...fission

Number of cases closed. total . .---_----------------------

Character and security Investigations--- ---------------

Conduct investigation------------- --- I ---------------

Actions Special Imi. rin -------------------------------------

take . by Sao[,. T-I. ...t official. as . renult of

lersommil investigations

Disciplinary action., WaL --------------------------------

Separations. total I . . ---------------------------------

Bribery, extortion . or cullusion ---------------------

Embou ement or theft of G.

...meant funds o r

I

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

Falsification or distortion of Goverpm;rt reports,

U records, etc. --------------- ------------------

nauthorized outside seliv

I

ty_ -----------

r, - 1, d'11:r,.g.d1txx crop `y_:::::::::: :..~Iiivxl is coup .

.

.. ! ..

llv,l,,nll Acceptance*1at Iconfidential Information------------- .

. a'

personal and other in =tie.,L--------------------- ------------------- seapensions from duty and psy~~ ----------------------

Reprimands, warnings, roan lements, transfin, or

demotions------------------------------------

N .ndisciplimiry if- - -----------------------------------

Other investigations

Number of min cloud, total -----------------------------

Applications for admission to practice before the Internal

Raven us service _----------------- ---------------

Charges against enrollees.----------------------------

Federal tort claims-----------------------------------

Aft bribery-----------------------------------

Discrimination "mpt" d ------------------ ------------------

investigations for other Treasury bureaus. --------------

1964 1963

8, ZZI 10.01 1

6.923 8,626

~'037716

2,81 9

3,354

693

2,876

H E

271

17

17

89

1 19

13

13

95

42

3 5

6, 7, ni

1,293 1,385

498

119

230

55

5

386

13'

1 17

16847

2

41 5

I Includes in whi

is

stigai on or b dre . ir n ipt egpld.ly or. r

under inve .111me We, made

'r

I . .. y

action he,. innitill discl.. . it derogatory information .

JOINT INTEGRITY PROGRAM~As the result of the emphasis placed on matters that could adversely affect the

integrity of the Service, the Internal Audit and Internal

Security Divisions more closely coordinated their efforts, talents and capabilities, to assure that a better

overall protective and constructive mission would be

carried out . Therefore, a program has been established whereby any indicators of a breakdown in integrity (those involving a potential or actual "fraud on

the revenue" by or through the help of a Service

employee) are investigated through a well-coordinaled,

professionally planned joint endeavor.

During the current year numerous schemes have

been detected involving fraud on the revenue in which

Service employees were involved . As the result of the

joint efforts, a number of employees, former employees,

tax practitioners and taxpayers have been arrested or

indicted. In one major metropolitan area over $3

million in additional taxes and penalties have been

assessed as a result of hundreds of tax examinations

growing out of the joint investigations of these

schemes .

55
ANNUAL REPORT 9 CHAPTER TE N

GENERAL ACCOUNTING OFFICE REPORTS

Under the provisions of the Budget and Accountin g

Act of 1921 (31 U.S.C. 53) and the Accounting and

Auditing Act of 1950 (31 U.S.C . 67), the General Accounting Office reviews Service operations and reports

its findings to the Congress, to the Secretary of the

Treasury, or to appropriate Service officials depending

upon the relative significance of the findings .

Two reports, pointing out deficiencies in the administration of travel funds, payroll activities, and other

administrative matters, were issued to Service officials

during 1964 . Corrective action has been taken by rcsponsible officials.

ADVISORY GROU P

In keeping with the practice of periodically changing the membership, the Commissioner appointed a

new Advisory-Group in March 1964 . The Group's

purpose is to provide constructive criticism of Service

policies, procedures, and programs and suggest ways

in which the Service can improve its operations. The

Advisory Group shown in the 1963 Annual Report met

on September 5-6, 1963, and November 14-15, 1963 .

The newly appointed Group met twice this year : March

9-10, 1964, and June 19-19, 1964 . The members of

the new Group are as follows :

Prof . Boris 1 . Bittker

Yale Law School

New Haven, Conn.

Prof . Charles 0. Galvi n

Southern Methodist University School of Law

Dallas,Tex .

Mr. Albert R . Gilman

Albert R. Gilman & Co.

Rochester, N.Y.

Mr. John P. Goedert

Alexander Grant & Co .

Chicago, 111.

Mr. Scott C . Lambert

Standard Oil Co. of California

San Francisco, Calif .

Mr. Leonard W. Natthen

Curtis-Wright Corp. Wood-Ridge, N.J.

Mr. Paul E. O'Brien

Coca-Cola Co.

Aflanta,Ga.

Mr. Louis H. Pilic

Peat, Marwick, Mitchell & Co.

New Orleans, La.

Mr. Lester M . Ponder

Barnes, Hickam, Pantzer & Boyd

Indianapolis, Ind.

Mr. Norman Ture

National Bureau of Economic Research

Washington,D .C .

Mr. James H . Wilson, Jr.

Sutherland, Asbill & Brennan

Atlanta, Ga .

Mr. Milton Young

Young, Kaplan & Edelstein

New York, N .Y .

Taxpayer Publication s

Tax FormsNew and Revise d

Regulations

Revenue Rulings

and Procedures

Announcement$ of

General Interest

Supreme Court Decisions

Actions of Lower Courts

Statistics of

Income Releases

56 1 57
I

Appendix

TAXPAYER PUBLICATIONS

Your Federal Income Tax, IRS Publication No. 17,

is written for the individual taxpayer. Ranking among

the best sellers of Government publications, about

850,000 copies of the booklet were sold this year. In

addition, 90,000 copies were used in the Teaching

Taxes Program, the Taxpayer Assistance Program, and

in various training programs . As usual, run-of-themill problems of the average taxpayer were covered in

detail. In addition, simplified explanations of the

more complex problems which even the average tax.

payer will occasionally encounter were furnished, as

well as brief explanations of some new provisions of

the laws which are effective for the first time in the

current tax year. A filled-in sample of the individual

return appears in the front of the book. All parts of

the return are keyed to page numbers in the book

where detailed explanalions and examples may be

found .

Ile 1964 edition contained 144 pages and was sold

at 40 cents a copy (same size and price as the 1963

edition) by the Government Printing Office and IOC21

Internal Revenue Service offices.

Alcohol and Tobacco, Summary Statistics, Publica .

tion 67, released each year, usually in February, pre.

sents comprehensive statistical data relating to the

alcohol and tobacco industries.

The publication contains 94 statistical tables sum~

marizing pertinent phases of the distilled spirits, beer,

wine, and tobacco industries by States and by months,

an introduction defining principal terms, and an index

Comparisons are made with the previous fiscal year and *

historical data are shown for the years 1934 to date,

Tables show such details as the number of establishments, materials used, production, taxable and tax-free

withdrawals, stocks, imports, rectification, bottling,

enforcement activities, and internal revenue collections

from alcohol and tobacco taxes.

Recent issues can be obtained from the U.S . Govern

ment Printing Office, Washington, D .C. 20402, at 50

cents per copy .

Tobacco Tax Guide, IRS Publication No. 464 containing virtually all basic reference materials to c able

manufacturers of tobacco products and others concerned

to comply with Federal tobacco tax laws and regulations, has been made available to the tobacco industry

and the public on a subscription basis . This looseleaf

volume, when completed, will contain all of the interrizI revenue regulations, portions of customs regulations and internal revenue laws pertinent to tobacco,

currently significant revenue rulings, revenue procedurP3, industry circulars, an up-to-date list of manufacturers of tobacco products and proprietors of export

warehouses operating under Federal permits, a miscellaneous division, and an alphabetical index .

Tax Guide for Small Business, IRS Publication No

334, is written especially for small sole proprictorships,

partnerships, and corporations . This year over 250,000

copies were sold and 40,000 copies were printed for

internal use by the Service. Income taxes, excise taxes,

and employment taxes are explained in plain language

and numerous examples are used to illustrate the application of thelaws. A check list, of particular interest

to new businessmen, shows at a glance the taxes for

which different kinds of business organizations and

business activities may be liable and what the business

should do about them. A tax calendar for 1964 is also

provided to assist businessmen in keeping track of

when various things should be done during the year

with respect to all their Federal taxes . Brief explana.

tions of new laws taking effect during the current year

were included in this edition, so that the businessman

could make necessary preparations, during the year, for

ing is 1964 returns. As it did last year, the booklet

contains 144 pages and is sold to the public for 40 cents

a copy through the same outlets as Your Federal Income Tax. The booklet, like Your Federal Income

Tax, is an important segment of the Commissioner's

program for more effective taxpayer assistance and

education.

Information Guides-4ntemational Operations

No. I-Fulbright Grants and U .S. Income Tax

No. 2-Income Tax Deductions of Members of the

Foreign Service, Department of Stat e

No. 3-Dual-Status Tax Years of Alien Taxpayers

Formerly known as Change of Status Year for Nonresident Alien Taxpayers )

No . 4-Claims for Recovery of Manufacturer's Excise Tax on Exported Articles

No. 5-Social Security Coverage,for Clergymen and

Religious Workers Abroad

No . 6-Preparation of Form 1040 B

No . 7-Tax Advice for Foreign Scholars and Visitors on Official Educational and Cultural Exchange

58

ANNUAL REPORT 0 APPENDI X

Programs (Formerly known as Foreign Scholars and

U.S. Income Tax)

No . 8-Amcrican Scholars Abroad and U.S . Income

Tax

No . 9-U.S. Tax Guide for Alien s

Rules for Deducting Travel, Entertainment, and

Gilt Expenses, IRS Publication No. 463, was originally

developed as one of the taxpayer information documents, but with the enactment of new law in 1962 and

the issuance of completely new regulations in 1963, this

pamphlet was made a part of the publication series

so that the great demand by interested taxpayers could

be filled directly by the Government Printing Office .

Over 2 million copies of this publication, which explains stricter new rules for claiming deductions and

for keeping required records in connection with travel,

entertainment and gift expenses, were printed for distribution in 1964 .

The Farmer's Tax Guide, IRS Publication No . 225,

explains the tax problems of farmers . This year,

1,040,000 copies of the 64-page booklet were distributed

through Internal Revenue Service offices and agricultural extension agents of the Department of Agriculture . Ile publication discusses income, employment,

and self-employment taxes and contains numerous examples illustrating the rules . It features a list of

Important Dates to Remember devised especially for

farmers, to help them keep track of their tax obliga .

tions throughout the year .

Motor Fuel Tax Pamphlets explain the latest rides

in regard to the various Federal motor fuel taxes .

There are three such pamphlets :

Federal Use Tax on Highway Motor Vehicles, IRS

Publication No . 34 9

Federal Gasoline Tax Refund for Non-highway

and Transit Users, IRS Publication No. 378

Farmer's Gasoline Tax Refund, IRS Publication

No . 308

Teaching Taxes, IRS Publications Nos . 19, 21, 22,

and 27, is a series of booklets used in a program to introduce high school and college students, and others to

the basic principles and rules underlying the Federal

self-assessment system of taxation . Over 3 million

students participated in the program during 1964 .

Tax Tips for Homeowners, IRS Document No . 5447,

is, as the title implies, written especially for the taxpayer who owns his own home. This 12-page pamphlet, which has been added to other free taxpayer assistance material, recognizes that many of our tax laws

are especially applicable to the homeowner . Starting

with the tax aspects of the home purchase, the parnphlct explains to the taxpayer what part of his purchase

costs must be capitalized, what part may be deducted,

and what part is personal, nondeductible expense. It

also discusses the tax treatment of costs incurred during

the years of ownership. Lncluded in the pamphlet are

discussions of property used for business or the production of rent, and the tax results of a condemnation

or the granting of an casement. Finally, the taxpayer

is told what to do for tax purposes if he sells or otherwise disposes of his home . The importance of keeping records throughout the period of ownership is

stressed .

Cost or Other Basis of Assets, IRS Document No.

5516, is a new 8-page pamphlet which has been

added to other free taxpayer assistance material available to the public . Prior to the issuance of this new

document, information concerning basis was included

as a part of various other documents dealing primarily with other subjects, The publication of Document

No. 5516 now brings this information together in

one short pamphlet, so that a taxpayer requesting information strictly concerned with basis does not have

to search through extraneous material to find the answer to his question .

Foriign Tax Credit for U .S . Citizens and Resident

Aliens, IRS Document No . 5517, is a new pamphlet

which was added this year to other free material available for the assistance of taxpayers. This pamphlet

was issued at the request of the Director of International Operations ; as the result of his findings that

computation of the credit has been a major problem

to United States citizens abroad and one taking a substantial portion of the time spent on taxpayer assist2nce by our foreign post representatives. The document explains who may take the credit, what foreign

taxes qualify, how the election to credit qualifying taxes

is made, limitations on the credit, and the carryback

and carryover provisions . Form 1116 (the statement in

support of the credit claimed) is illustrated and explained.

importance of Adequate Records and a Guide to

Information Available for Preparing Federal Tax Returns, IRS Document No. 5518, is new this year . This

pamphlet was issued to assist field offices in emphasizing to taxpayers why good records are important

for proper return filing, and what constitutes sufficient records, depending upon the extent of the taxpayer's income-producing activities. The list of other

available booklets and pamphlets included as a part of

this Document not only informs the taxpayer of the

many subjects with regard to which he can obtain

concise and easy-to-read explanations, but also provides

him with a correct number and title to refer to in requesting the appropriate publication which will help

him with his tax problem.

59
ANNUAL REPORT * APPENDI X

TAXPAYER AsSISTANcE DOCUMENTS~Forty-two other

taxpayer assistance documents were distributed free to

taxpayers. These publications range in size from I to

24 pages. Distribution of the various documents ranged

from 1,000 to 110,000 copies . Each publication contains detailed explanations of the laws applicable to a

particular problem area . Objectives of this program are

to expedite and increase the effectiveness of our Taxpayer Assistance Program, and to minimize the necessity for individual assistance to taxpayers by Internal

Revenue Service personnel. The booklets are used as

inserts by the National Office and by Service field offices in replies to inquiries from taxpayers, and are

available upon request in local offices of District Directors . They are also used as supporting statements

for adjustments made in revenue agents'reports . These

documents are :

Till, Docurn~tNo.

Personal Exemptions and Dependents . . . . . . . . . . . . . . . . 5013

Employee Expenses, Educational Expenses . . . . . . . . . . . . . 5014

Sick Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5016

Selling Your Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5017

Retirement Income and Credit . ~ . , . . . . . . . . . . . . . . . . 5018

Medical and Dental Expenses . . . . . . . . . . . . . . . . . . . . . . . 5020

What Is Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5045

Tax Calendar and Check List for 1964 . . . . . . . . . . . . . . 5046

Self-Employment Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5047

Sales and Exchanges of Assets . . . . . . . . . . . . . . . . . . . . . 5048

Depreciation, Investment Credit, Amortization, Depiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5050

Business Expenses . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . 5051

Child Cam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5052

Contribu tons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5053

Retailers Excise Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5054

Manufacturers Excise Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . 5055

Excise Tax on Communications . . . . . . . . . . . . . . . . . . . . . . 5056

Occupational Sump T... . . . . . . . . . . . . . . . . . . . . . . . . . . 5057

Tax on Admission$ and Dues . . . . . . . . . . . . . . . . . . . . . . . . 5059

Rents and Royalties Income . . . . . . . . . . . . . . . . . . . . . . . . 5060

Lmses; From Operating a Business . . . . . . . . . . . . . . . . . . . 5062

Interest Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5074

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5075

Filing Your Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5107

Installment and Defamd-Payment Sales . . . . . . . . . . . . . . 5108

Alimony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5109

"Page 2" Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5110

Estimated Tax and Tax Withholding . . . . . . . . . . . . . . 5111

Casualties, Simms, Floods, Hurricanes, Other Disaster "

and Thefts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

.

. *

5174

Amounting Periods and Methods . . . . . . . . . . . . . . . . . . . . 5175

Bad Debts . . . . . . . ., . . . . . . . - - . . . . . . 5176

Withholding From Wages by Employer . . . . . . . . . . 5177

Repairs and Improvements . . . . . . . . . . . . . . . . . . . . 5178

Partnerships . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . 5179

Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 80

Sale of a Business . . . . . . . . . . . . . . . . . . . . . . . . . . 5181

Community Property . . . . . . , . . . . . . . . . . . . . . 5192

If Your Return Is Examined . . . . - . . . . . . . . . . . . . . 5202

Documentary Sump Taxes . . . . . . . . . . . . . . . . . . . . . . . _ 5286

Condemnations of Private Property for Public Use . . . . . 5383

Decedents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5446

Investment Income and Expenses . - - . . . . . . . _ 5448

60

NEW TAX FORMS ISSUE D

The following new forms with filing instructions

Were issued during the year :

Form No . Title

2950SE Self-Employed Retirement Deductio n

2969 Application and Permit in Use Docurrienuey Scamp

Tax Mee r

2970 Order for Setting Documentary Stamp Tax Meer

2848 General Power of Attorney

2848-A Limited Power of Attorne y

3625 Certifiate of American Ownershi p

3626 Certificate of American Ownership by Nominm

3650 Blanket Certificate 'of American Ownershi p

3651 Blanket Certificate of American Ownership by Nominm

3672 Application for Approval of Master or Prototypc Plan

for Self-Employed Individuals

3673 Application for Approval of ScIf-Employed Pension or

Profit-Sharing Plan as Put of a Master or Prototype

Form or Any Bond Purchase Plan

SELECTED REGULATIONS PUBLISHED

Income Tax Regulation s

Regulations under sections 401 and 405 of the Code

were amended to provide rules for establishment of

qualified pension, profit-sharing, and stock bonus plans,

and qualified bond purchase plans by or for self-cmployed individuals . Treasury Decision 6675, published

September 17, 1963 .

Regulations under sections 72, 402, 403, and 404 of

the Code were amended to provide rules governing the

qualification of voluntary retirement plans established

by self-employed persons, the deductibility of contributions to such plans, and the taxability of distributions .

Treasury Decision 6676, published September 17, 1963 .

Regulations under section 453 of the Code were

amended to provide rules for treating sales under a

revolving credit plan as sales on the installment plan .

Treasury Decision 6682, published October 18, 1963 .

Regulations under section 615 and 381(c)(10) of

the Code were amended to conform the regulations to

changes made by Public Law 86-594 which removed

the 4-year limitation and substituted an overall litni~

tation of $400,000 on deduction of exploration expenditures . Treasury Decision 6685, published October 24,

1963 .

Regulations under sections 61 and 421 of the Code,

were amended to provide rules for the taxability of

options received by independent contractors. Treasury

Decision 6696, published December 12, 1963.

Regulations were issued under section 956 of the

Code, as added by section 12 of Public Law 87-834,

providing rules in respect of investment of earnings of

a controlled foreign corporation in United States property . Treasury Decision 6704, published February 20,

1964 .

ANNUAL REPORT 9 APPENDI X

Regulations under sections 165, 167, 179, 611, 642,

and 1014 of the Code were amended to reflect the

changes made by section 13 of Public Law 87-834 relating to the allowance for depreciation of property used

in a trade or business or held for the production of

income. Treasury Decision 6712, published March 24,

1964 .

Regulations under sections 61 and 451 of the Code

were amended with respect to the constructive receipt

of interest on life insurance policy dividends left to

accumulate, and interest on certain deposits, shares or

accounts in 2 bank or similar financial institutions .

Treasury Decision 6723, published April 21, 1964 .

Regulations were issued to implement certain provisions of section 2 of the Revenue Act of 1962 relating

to credit for investment in certain depreciable property.

Treasury Decision 6732, published May 8, 1964.

Temporary Regulations Under the Revenue Act

of 1964

Temporary regulations under section 962 of the

Code were issued to inform individuals who are United

States shareholders of controlled foreign corporations as

to how, whenand where to make an election to be

subject to tax at corporate rates on amounts included

in gross income under section 951 (a) and to treat such

amounts as if they were received by a dome"t .c corporation for purposes of applying the special rules under

section 960 applicable to the foreign tax credit

.

Treasury Decision 6703, published January 31, 1964 .

Temporary regulations under sections 172 and 1375

of the Code were issued to inform taxpayers of the

method and time for making an election with respect

to the carryover of a net operating loss attributable to a

foreign expropriation loss, and an election by a small

business corporation to treat certain distributions as

made on the last day of a taxable year . Treasury Decision 6719, published April 3, 1964 .

Temporary regulations under section 483 of the

Code were issued to inform taxpayers of the minimum

interest rate which, if provided in a contract, will preclude the application of section 483 . Treasury Decision 6720, published April 7,1964 .

Temporary regulations under section 243 of the

Code were issued to inform taxpayers of the time and

manner of making the election relating to the 100-

percent dividends received deduction. Treasury Decision 6721, published April 10, 1964 .

Temporary regulations under sections 1561 and 1562

of the Code were issued to inform taxpayers of the

time and manner of apportionment of the single $25 , 000

surtax exemption allowed to certain members of a ct .l

trolled group of corporations under section 1561(a),

and of the election by a controlled group of multiple

surtax exemptions under section 1562(a) . Treasury

Decision 6733, published May 14,1964 .

Employment Tax Regulations

Regulations under section 3401 of die Code were

amended to conform the exemptions from collection of

income tax at source on wages with the changes made

to section 911 of the Code which place an additional

limitation on the amount of earned income which certain United States citizens living abroad may exclude

from their gross income . Treasury Decision 6697,

published December 17, 1963 .

Excise Tax Regulation s

Manufacturers and Retailers Excise Tax Regulations

under section 4216(f) of the Code were amended to

conform to section 2 of Public Law 87-770 which

changes the definition of local advertising to include

the media of magazines and outdoor advertising signs

or posters . Treasury Decision 6686, published October

24, 1963 .

Highway Motor Vehicle Use Tax Regulations were

amended to provide that air-conditioning equipment

and sanitation facilities are included in the term "fully

equipped for service" in the case of buses. Treasury

Decision 6743, published June 23, 1964.

Statement of Procedural Rules

Procedural rules were amended to liberalize the

power of attorney requirements for an attorney or

agent representing taxpayers before the Internal Revenue Service .

Amendment Published 9/19/63

Amendment Published 3/14 /6 4

Alcohol, Tobacco, And Firearms Regulations

Treasury Decision 6671 amended regulations in 26

CFR Part 245 to provide for the production of conccntrate from beer, the reconstitution of beer from

concentrate, the qualification as breweries of plants

concentrating or reconstituting beer, the transfer of

concentrate between breweries, and the exportation of

concentrate.

Treasury Decision 6673 amended regulations in 26

CFR Part 252 to provide procedures for the exportation of beer concentrate.

Treasury Decision 6695 amended regm12tions in 26

CFR Part 250 primarily to modify procedures as to

distilled spirits produced in Puerto Rico to be shipped

to the United States ; simplify procedures in Pue rto

Rico for tax deferment and release of liquors ; extend

Puerto Rican rectification tax procedure to wines; and

provide for the collection, by Collectors of Customs~

from tourists, of taxes on Puerto Rican products.

Treasury Decision 6702 added regulations in 26

CFR Part 170 to provide for the submission to the

Assistant Regional Commissioner, Alcohol and Tobacco

6 1

U-- --- - - -
ANNUAL REPORT * APPENDI X

Tax, of powers of attorney authorizing agents and

officers to execute bonds on behalf of corporate sureties .

Formerly these were submitted to the Commissioner

of Accounts, Surety Bonds Branch, Treasury Department .

Treasury Decision 6729 amended regulations in 26

CFR Part 194 to liberalize provisions relating to records

of dispositions of spirits by wholesale dealer, ,

Treasury Decision 6701 added a new Subpart D to

26 CFR Part 296 to provide temporary rules in the

tobacco tax area for the submission of powers of attor .

ney authorizing agents and officers to execute bonds on

behalf of corporate sureties.

Treasury Decision 6705, effective February 29, 1964,

amended the Federal Firearms Act regulations, as contained in 26 CFR Part 177 to clarify the status of manufacturers and dealers licensed under the act who have

been indicted for any crime punishable by imprison .

ment for a term exceeding I year and to provide for

the continuation of operations by these persons until a

conviction under the indictment becomes final .

SIGNIFICANT REVENUE RULINGS AND

PROCEDURES

Since the courts, in a series of steps, have successively

applied a restrictive construction to the scope of the

statute imposing the cabaret tax, the Service no longer

will litigate cases involving the applic2bil ity

of

that tax

to amounts paid at an establishment for food, refreshment, service, or merchandise ordered and served before

the establishment attains cabaret status or after that

status has been terminated (Rev . Rul . 63-154, C .B .

1963-2, 541) (also released as T.I.R. 488, 7-2-63).

A retired minister of the gospel may exclude from his

gross income the rental value of a residence furnished

to him by his church as part of his compensation for

P2St Services (Rev . Ruh 63-156, C.B . 1963-2, 79) .

Thc manufacturers excise tax does not apply to an

importer's use of articles which initially were produced

in the United States and sold on a Lax-exempt basis by

the manufacturer for export to a foreign country (Rev .

Rul . 63-162, C.B . 1963-2, 525) .

Based upon the relevant legislative history, the re.

Eailers excise tax does not apply to an "in-the-car" hearing aid which is plated with gold to prevent corrosion

(Rev . Rul. 63-199, C.B . 1963-2, 457) .

Shares of stock issued by the surviving corporation

pursuant to a plan designated as a "merger agreement"

which involves a shift in ownership or interest rather

than a merc change in identity, form, or place of or.

ganization, are not exempt from the documentary stamp

tax (Rev. Rul . 63-203, C .B . 1963-2, 580) .

A nonprofit recreation association, the membership

of which is limited to employees of a company located

in a certain municipality, may come within the scope

of the club dues tax even though the organization has

been granted exemption from the Federal income tax

under the provisions of section 501 (c) (4) of the Code

(Rev . Rul . 63-214, C.B . 1963-2, 544) .

A loss resulting from damage to property cau

.

I

scd by

termites is no longer considered a casualty loss under

section 165(c)(3) of the Code (Rev. Rul."63-232, C .B. 1963-2, 97) .

Guidelines are established with respect to the dc~

ducLibility of contributions by individuals to a charity

organized in the United States which thereafter trans,

mits some or all of its funds to a foreign charitable organization (Rev . Rul. 6-252, C .B. 1963-2, 101) .

A bank's addition to its bad debt reserve in excess of

the amount computed under Mimeograph 6209, as supplemented, must meet the reasonable reserve requirements of section 166(c) of the Code (Rev . Rul . 63-

267, C.B . 1963-2, 99) (T.I.R. 499, 8-7-63) .

Research and related expenses incurred by a college

or university professor for purpoics, of teaching, lectur.

ing, Or writing in his capacity as an educator are decluctible business expenses (Rev . Rul. 63-275, C .B.

1963-2, 85) (T.I .R . 525, 12-9-63) .

Traveling expenses incurred in Lraveling abroad to

develop foreign markets for an existing business are

deductible business expenses (Rev . Rul. 64-42, I .R.B .

1964-5, 10) .

Under certain circumstances, a corporation's trans

fer of technical "know-how" in exchange for stock in

another corporation qualifies for nonrecognition of

gain under section 351 of the Code (Rev. Rul . 64-56,

I.R.B . 1964-8, 9) .

A percentage depletion allowance for ad valorem

property taxes on mineral-bearing lands paid by a lessee

may be allocated by the lessor and the lessee pending

further judicial guidance (Rev . Rul . 64-91, I .R .B . 1964-

12, 8) (T.I .R . 549, 3-9-64) .

The receipt of insurance proceeds from the complete

destruction by fire of property, as defined in section 337

of the Code, resulting in an involuntary conversion, is

now considered a "sale or exchange" for purposes of

section 337(a) of the Code (Rev . Rul. 64-100, I .R.B .

1964-13, 8) .

Factors are set forth to be considered in determining

whether a savings and loan association may be classified as a "domestic building and loan association"

(Rev . Rul . 64-123, I .R.B . 1964-17, 22) (T.I .R . 566,

4-7-64).

An advance ruling is required under section 367 of

the Code where, but for section 332, gain on liquidation of a foreign corporation would be recognized to

a United States shareholder in the form of subpart F

income (Rev. Rul. 64-157, I .R.B . 1964-21, 18) (T.I .R.

586, 4- 24-64) .

Instructions are provided to amplify the stock idenANNUAL REPORT * APPENDI X

tification requirements applicable to securities dealers

who participate in certain methods of clearing stock

transactions (Rev. Rul. 641160, I .R .B. 1964-21, 27)

(T.I .R . 591, 4-30-64) .

The wagering taxes apply to 2 sweepstakes opera .

Lion conducted by the State of New Hampshire (Rev .

Rul . 64-163, I .R .B . 1964-21, 31) .

For purposes of the retailers excise tax, 2 Completely

finished fur collar does not lose its identity as a taxable article because it is sold with a cloth coat or sweater for a lump-sum price (Rev . Rul . 64-185, I .R .B. 1964-

25, 58) .

A nonprofit corporation organized to aid and promote the purposes of the Area Redevelopment Act is

exempt from income tax under section 501(c)(4) of

the Code (Rev . Rul. 64-187, I .R.B . 1964-26, 7) .

Guidelines are set forth with respect to essential tax

record requirements where a taxpayer's accounting records are maintained within an automatic data processing system (Rev . Proc . 64-12, I.R.B . 1964-8, 19) .

An administrative procedure is established under

which a taxpayer may request permission to change an

accounting practice with respect to items of income or

expense (Rev. Proc. 64-16, I.R.B . 1964-9, 35) (T.I .R .

547, 2-17-64) .

Procedures are set forth for the computation of taxable income by a foreign investment company which

elected to distribute income currently to its shareholders and the treatment of such distributions by the shareholders (Rev . Proc . 64-17, I .R .B . 1964-10, 27) (T.I.R.

541, 1-31-64) .

SIGNIFICANT ANNOUNCEMENTS OF GENERAL

INTEREST

Because of a developing trend in the field of alcoholic beverages advertising involving disparagement of

competitive products, Industry Circular No . 63-23 was

issued for the purpose of directing the attention to the

provisions of the regulations issued under the Federal

Alcohol Administration Act (27 CFR 4 .64(a)(2),

5 .64(a)(2), and 7 .54(a)(2)), which prohibit statements disparaging of competitors' products in advertisements disseminated by producers, importers, and

wholesalers of alcoholic beverages.

Revenue Rulings and Revenue Procedures relating

to tobacco (originally issued under Ch . 15 of the Internal Revenue Code of 1939 and Ch . 52 of the Internal

Revenue Code of 1954) have been revised and updated

to reflect current provisions of the law and the regulations .

The attention of wholesale liquor dealers was called

to the publication of Treasury Decision 6729 which

provided, in certain cases, for relief from the requirement for recording serial numbers of cases of spirits

disposed of, when approved by the Assistant Regional

Commissioner, Alcohol and Tobacco Tax (News Release (unnumbered), dated May 12, 1964, and Industry Circular No . 64-8, dated May 13, 1964) .

Domestic taxpayers should advise their foreign affiliates to take protective action with foreign taxing au .

thorities to prevent double taxation in instances where

the Internal Revenue Service is proposing the reallocation of income, deductions, or credits between the

related business entities (Announcement 63-83, I.R.B .

1963-32, 56) (T.I .R . 491, 7-17-63) .

The Service has completed its review of alcohol tax

Revenue Rulings which were issued prior to July 1,

1960, and lists those remaining in effect as of June 1,

1963 (Announcement 63-91, I .R .B . 1963-34,23) .

Extensions of time beyond 6 months from April 1,

1963, may not be granted to persons who, on January 1,

1963, were required to file Form 959 with respect to

the organization or reorganization of a foreign corporation and the acquisition Of its Stock (Announcement

63-92, I .R.B. 1963-35, 19) (T.I.R. 498, 8-1-63) .

Form W-3, Reconciliation of Incomr. Tax Withheld

From Wages, has been revised for 1963 to provide for

a new reporting requirement in connection with the

automatic data processing system (Announcement 63-

103, I .R .B. 1963-41, 87) (T.I.R. 509, 9-16-63).

Exempt organizations which conduct lotteries may

jeopardize their tax-exempt status, as well as incur lia .

bility for unrelated business income tax and the wagering taxes (Announcement 63-108, I.R.B . 1963-43, 28)

(T.I.R. 513, 10-4-63) .

The Statement of Procedural Rules, as it relates

to Conference and Practice Requirements, has been

amended to relax substantially the power of attorney

requirements for agents and attorneys who practice before the Service (Announcement 63-110, I.R .B . 1963-

43, 29) (T.I .R. 514, 10-8-63) .

A tax practitioner's workload is considered as a factor in granting extensions of time for filing individual

income tax returns (Announcement 63-113, I .R .B.

1963-45, 106) .

Several questions regarding taxpayer identification

numbers are answered (Announcement 63-116, I .R .B.

1963-47,31) .

Increases in the amount of Federal unemployment

tax for the calendar year 1963 will apply to wages

for services performed in 9 of the 50 States because of

reductions in the amount of credit which may be applied against the Federal tax (Announcement 63-128,

I .R .B . 1963-50, 63) (T.I .R . 522, 11-22-63) .

Requests for opinion letters as to the acceptability

of master or prototype pension and profit-sharing plans

for self-employed individuals will be acted upon as

promptly as possible (Announcement 63-130, I .R .B .

62 63

1963-51, 42) (T .I.R. 524, 12-4-63) .
I

ANNUAL REPORT 9 APPENDI X

The deductibility of contributions to charities which

transmit funds to foreign organizations may be determined by reference to the Cumulative List of Organiza.

tions, contributions to which are deductible under section 170(c) of the Code (Announcement 64-4, I .R.B .

1964-4, 58) (T.I .R . 531, 12-20-63) .

One edition of the Bulletin is devoted to an index

to administrative and procedural matters which have

been published in the Bulletin since 1952 (Announcement 64-13, I .R .B. 1964-7, 6) .

United States shareholders with income from controlled foreign corporations should submit detailed

statements with their returns for the calendar year

1963 and other taxable years ending before October 31,

1964 (Announcement 64-19, I .R .B . 1964-9,38) (T.I .R.

542,2-4-64) .

A brief summary of the various records required to be

retained for Federal tax purposes has been published

in the Federal Register as the current Guide to Record

Retention Requirements (Announcement 64-27, I .R.B .

1964-13,49) .

A Council for International Tax Administration has

been established to serve in a consulting and advisory

capacity to Service officials (Announcement 64-48,

I .R .B.1964-19,48).

For taxable years after 1963, taxpayers whose income fluctuates widely from year to year may elect to

average such income over a 5-year period (Announcement 64-55, I.R .B . 1964-21, 33) (T.I .R . 584, 4-27-64) .

Taxpayers are advised to review their pay-as-you-go

status for 1964, the transition period for reductions in

income tax and withholding rates (Announcement 64-

62, I.R.B . 1964-22,79) .

SUPREME COURT DECISIONS

Civil Cases

In United States v. Zacks, 375 U.S . 59, decided November 12, 1963, the Supreme Court reversed the Court

of Claims and held that the 1956 enactment, with retroactive applicability, of section 117(q) of the Internal

Revenue Code of 1939, (lid not remove the bar of the

statute of limitations on filing of a refund claim for a

closed year . The Court relied heavily on the adminis .

trative and legislative background of the enactment

in seeking to ascertain the intent of Congress, and in.

dicated that such an inquiry is essential where a retroactive statutory provision does not expressly waive the

bar of limitations. The Court's opinion appears to

require a taxpayer to show affirmatively that Congress

intended by implication to waive the limitations bar.

The presumption against an implied waiver may be almost conclusive where the retroactive statutory provision is enacted together with other provisions which

expressly waive the bar of the statute of limitations.

On December 2, 1963, the Court decided United

States v . Ssapl, 375 U .S . 118, an estate tax case involving community property . Ile Court reversed the

Court of Appeals for the Fifth Circuit on all issues

presented. The first holding was that the derredent's

estate was not entitled to any marital deductioik under

section 812(c) of the Internal Revenue Code of 1939

with respect to separate property of the decedent where

his widow took such property under his will but was

required at the same time to give up community property having a greater value . The second important

holding W2S that the decedent's estate was entitled to

deduct only one-half of claims against the community

estate under section 812(b), even though the testator

directed that all such claims be paid out of his own

estate . The decision carries into effect the original

Congressional intent of equalizing the estate tax burdens between community property and cornmon law

states.

On December 16, 1963, the Court decided Meyer v .

United States, 375 U .S . 233, reversing the decision of

the Court of Appeals for the Second Circuit . This case

involved a situation where a decedent pledged his life

insurance policies as collateral for a loan during his lifetime . Thereafter, assessments of Federal tax were

made. The court of appeals had applied the doctrine

of marshaling of assets since the pledge attached to the

entire proceeds, whereas the tax lien attached only to

the cash surrender value of the policies . It concluded

that the proceeds passed to the beneficiary subject to

both claims and that the tax claim could be fully satis~

ficel out of the cash surrender value by marshaling the

loan claim against the balance of the proceeds . The

Supreme Court held, however, that the doctrine of

marshaling is founded in equity and is to be applied

only when it can be equitably fashioned as to all who

have an interest in the property involved. The Court

thus refused to apply marshaling since to do so would

both overturer the State's "beneficent policy" which

underlies the New York law exempting the proceeds

of life insurance policies from levy by creditors of the

decedent and would enlarge the Federal tax lien .

In Reisman v. Caplin, decided January 20, 1964, 375

U.S . 440, the Court affirmed the Court of Appeals for

the District of Columbia which had held that a suit

seeking to have a Service summons declared null and

void :end the Commissioner enjoined from attempting

to enforce it was, in substance, a suit against the United

States to which it had not consented and was, there.

fore, subject to dismissal . The Court concluded that

the petitioners had an adequate remedy at law and the

complaint was subject to dismissal for want of equity .

The Court distinguished between proceedings to compel compliance with a summons and proceedings

against a person summoned for an attachment against

him as for a contempt, approving reliance upon th e

64

ANNUAL REPORT is

former proceedings where there has been a good faith

challenge to the summons and confining the more

severe action to cases where there has been either a

default or a contumacious refusal to comply. The

Court further indicated that the person summoned, or

any interested party, may appear and challenge the

summons at either the Service or the district court

hearing and that an order directing compliance with

a summons was an appealable order.

On March 23, 1964, the Supreme Court decided two

tax cases .

In Bruning v . United States, 376 U.S . 358, the Court

held that the Government could collect interest which

accrued after the taxpayer filed a petition in bankruptcy where such postpetition interest was collected

out of after-acquired assets as a personal liability of the

taxpayer on a tax debt which survived bankruptcy.

The decision was a significant victory for the Government, establishing the principle that interest on a tax

debt may continue to accrue even after a taxpayer files

a petition in bankruptcy .

In the estate tax case of Jackson v . United States, 376

U.S . 503, the Court -held that the widow's allowance

under California law does not qualify for the marital

deduction under section 812(c) of the Internal Revenue Code of 1939 because it represents a terminable

interest. The decision is based on the conclusion that

entitlement to the marital deduction must be determined as of the date of death and amounts to a rejec-.

tion of the contrary approach adopted in United States

v . First National Bank and Trust Company of Augusta, 297 F . 2d 312 (5th Cir. 1961) .

On June 1, 1964, the Court decided United States v.

State of Vermont, 377 U .S . 351, affirming the Court of

Appeals for the Second Circuit which had held that if

the general Federal tax lien was sufficiently "cherate" to

prevail over a later specific local tax lien, a general

State tax lien under an almost identically worded

statute as the Federal tax lien must also be "choate"

enough to prime a later general Federal tax lien . The

Court rejected the contention of the United States that

Federal tax liens are entitled to priority over any antecedent lien which is not sufficiently perfected to prevail

against the priority which R .S. 3466 gives to claims of

the United States in situations involving insolvency.

The fact that the State had not attached the propt~ty

involved, and thereby reduced it to possession, before

the Federal tax liens arose is not determinative, since

the standards applicable under such lien provisions and

those applicable to an insolvent debtor under R.S . 3466

are different. The Court reasoned that since the

assessment of the State tax is given the force of a judg .

ment enabling adm inistrative seizure of property to

satisfy the tax, the general State tax lien was sufficientl y

743-871 0-65-6

APPENDI X

choate to prevail over the later arising Federal tax

lien.

No case arising from a Tax Court decision was de.

cided by the Supreme Court during the year. Certiorari, however, was granted in Commissioner v. Clay

Brown, et al., 325 F. 2d 313 (9th Cit. 1963), which

involved a question of statutory interpretation of what

constitutes a "sale" for purposes of the capital gains

provisions . The Solicitor General has deemed this

case as one of rare importance because of social, cco~

nomic, and revenue implications of bootstrap sales of

businesses to exempt organizations .

Although not directly involving Federal taxation or

regulation of the liquor industry, in two recent impor.

tant decisions, the Supreme Court further delineated

the scope of the twenty-firSt amendment as applied to

the power of a State to tax imported liquor and prohibit

liquor exports . In Department of Revenue v, Beam

Distilling Co., 377 U.S . 341 (June 1, 1964), the Court

held unconstitutional, as violating the export-import

clause, Kentucky's attempt to apply its Lax on distilled

spirits shipped into the State to Scotch whisky imported into defendant's warehouses for nationwide

distribution. Similarly, it held invalid New York's

attempt to prohibit the shipment of liquor into that

State in customs bond for export for sale to airline

passengers going abroad. Hostetter v . Idlewild Bon

Voyage Liquor Corp ., 377 U .S . 324 (June 1, 1964) .

.

In the alc9hol and tobacco tax field, the Supreme

Court declined to review the affirmance by the Court

of Appeals for the District of Columbia Circuit (Sea~

way Beverages, Inc. v. Dillon, 319 F. 2d 722 (1963),

cert. denied 375 U .S. 923) of the denial, after hearing

and administrative appeal, of a beer wholesaler's basic

permit to a Chicago firm whose president and sole

stockholder, while president of a predecessor corpora.

tion, had employed the notorious Tony Accardo as a

beer salesman.

Criminal Case s

The Supreme Court has granted the Government's

request that it review the decision of the Court of Appeals for the Fifth Circuit declaring unconstitutional

the statutory presumptions (sec . 5601(b) I .R .C .) that

evidence of defendant's unexplained presence at an illicit still would be deemed sufficient to authorize a

conviction of possessing an unregistered still and of

carrying on the business of a distillery without having

given bond (United States v. Barrett, 322 F. 2d 292

(September 1963), cert . granted 375 U .S . 962) . The

Government has requested that the Court also review

a similar and more recent decision in the second circuit (United States v. Romano, 330 F. 2d 566 (March

1964), petition for certiorari filed June 1, 1964) .

65
I' ANNUAL REPORT * APPENDIX y ANNUAL REPORT * APPENDI X

The Court has also agreed to review the reversal by

the Court of Appeals for the First Circuit of defend .

ant's conviction for possession and operating an unlawful still on the ground that the investigator's affidavit

did not establish probable cause for the issuance of the

search warrant in that it did not specify which of the

facts asserted were based on personal knowledge and

which were the result of hearsay or of indirect hearsay and therefore the evidence resulting from the search

could not be used to support the conviction. (United

States v. Ventresca, 324 F . 2d 864, cert . granted June

22, 1964) .

ACTIONS OF LOWER COURT S

In the collection litigation area three court of appeals cases received considerable interest. In United

States v . Ryan, 320 F. 2d 500 (6th Cir. 1963), the

court affirmed the district court's judgment and order enforcing a Service summons requiring the tax .

payer to appear, testify, and produce his books and rccords for years in which collection of the tax was barred

by the statute of limitations in the absence of fraud .

The court rejected the taxpayer's contention that the

Government must establish to the satisfaction of the

district court that a reasonable basis exists for suspect,

ing fraud or that probable cause exists for believing

the taxpayer guilty of fraud . The court concluded that

the imposition of a condition precedent on the exercise

of the investigative powers of the Service was not authorized by Congress . To construe the statutes in~

volved otherwise would permit the court and not the

Government to determine whether an investigation was

necessary and would convert a summary enforcement

proceeding into a full scale trial to determine whether

the Government had reasonable grounds or probable

cause for the investigation . Ile Supreme Court granted

the taxpayer's petition for certiorari on February 17,

1964.

In the case of United States v. Powell, 325 F. 2d 914

(3d Cit. 1963), the court reversed the district court's

judgment and order requiring the taxpayers to produce,

for reexamination, certain records for years in which

the collection of tax was barred by the statute of limitations in the absence of fraud. The court concluded

that the Special Agent's affidavit, filed in the district

court, asserting that "he had reason to suspect" fraud

in the taxpayer's computations did not form a basis for

enforcement of the summons. The court rejected the

Government's argument that the agent need not set

out in his affidavit the facts which gave him reason

to suspect fraud nor establish by testimony that his

suspicion was reasonably grounded, pointing out that

section 7604 of the 1954 Code prohibits subjecting a

taxpayer "to unnecessary examination or investigations" and requires an application to enforce an ad66

ministrative summons be heard by the court and enfmccment ordered only "if satisfactory proof is made."

It concluded that since the agent here failed to make

a disclosure as to whatever may have created his suspicion of fraud, the summons would not be cn~orced.

Certiorari was granted on May 18, 1964 . ::,

In First National City Bank, et al. v. UnitedStates,

325 F. 2d 1020 (2d Cit. 1964), the court, i~tting en

banc, affirmed without further discussion by a four to

three decision, the prior majority opinion of the court

(321 F. 2d 14) . The primary issue was whether a

district court had jurisdiction to issue a preliminary

injunction prohibiting a third party bank from disposing of deposits of the taxpayer in a foreign branch

of Z bank . The court in the earlier majority opinion

had pointed out that under New York law, accounts

in a foreign branch of the bank are not subject to at~

tachment or execution by the process of a New York

court served in New York on the main office of the

bank because the main office and the foreign branch

are separate entities and there is no debt due from the

main office to the depositor in a foreign branch . The

court concluded, therefore, that since there was no

property within the United States to which the tax

lien could attach, an action in rem .could not be maintained. The Government had contended that this

court. itself had rejected the separate entity theory in

First National City Bank v. Internal Revenue Service,

271 F. 2d 616 (2d Cit. 1959), where the main bank

had been ordered to produce bank records physically

located in a foreign branch .

Ile court disniissed this contention, maintaining

that that decision did not constitue a rejection of the

separate entity theory for all purposes and under all

circumstances. The Government's petition for certiorari was granted on June 1, 1964.

The 30-year-old prohibition against labeling representations as to the age of neutral spirits, contained in

the Distilled Spirits Labeling Regulations (27 CFR

5 .39(c) and 5 .39(d) (5)) under section 5 of the Federal

Alcohol Administration Act (27 U.S .C . 205), has been

challenged in a suit now pending review in the Court

of Appeals for the District of Columbia Circuit. In

Joseph F. Seagram & Sons, Inc. v. Dillon, the district

court, by memorandum opinion of December 20, 1963

(Civil Action No. 263-63), disposed of a threefold

attack on the denial of a certificate of approval for labels

hearing the statement, "The grain neutral spirits in

this product contribute a unique delightful taste of

their own, the result of * * * storage for at least 4

years in specially selected used cooperage-barrels

which were previously used for aging fine whiskies."

The district court found (1) that the label violated

the regulation, (2) that the regulation was valid, and

(3) that there was no merit in law in Sngram's contention that the regulation was arbitrarily applied to

its product. Accordingly, it granted the Government's

motion for summary judgment .

Once again, the validity of computing the disCdlcd

spirits tax on each proof gallon, or wine gallon if below

proof (sec. 5001(a), I .R .C .), has been upheld against

the charge that it discriminates against spirits imported

in bottles which are usually bottled abroad at less than

proof . The Court of Customs and Patent Appeals

held that the wine g2llon-proof gallon measure as

applied to the $1 .50 increase of tax rates in 1951 did

not violate the provisions in the General Agreement

on Tariffs and Trade (G .A.T.T.) in that such agreement did not have the effect of freezing the rates on

imports to those in effect in 1948 . China Liquor Distributing Co. v. United States ; Hulse v . United States,

(May 1964) .

The Court of Appeals for the Third Circuit has now

joined five other circuits in, holding that the judicial

forfeitability of property is not defeated by the illegality of its seizure . In United States v. $1,058.00, 323

F . 2d 211 (Octobcr 1963), the court overruled its holding in United States v . One Plymouth Coupe, 182 F.

2d 180 (1950), saying it was compelled to do so by the

view expressed by the Supreme Court in United States

v. One Ford Coupe, 272 U .S . 321 (1926), that, where

forfeited property is seized by someone without legal

authority, the United States may adopt the seizure with

the S2MC effect as if it had been made by someone duly

authorized . Therefore the court declared the money

forfeit, regardless of the question as to whether the In .

tclligence Division Special Agent who seized it had

authority to execute the warrant .

However, the Court of Appeals for the Seventh Circuit in United States v . $5,608.30, 326 F . 2d 359 (Jan .

1964), reversed the district court's forfeiture of money

because that court had refused to consider a motion to

suppress as evidence and to return the money because

of its allegedly illegal seizure without a search warrant,

on the ground that, if the search was illegal, evidence

resulting therefrom should not have been admitted in

the libel proceeding.

The familiar fact urged as probable cause for a search

that the investigator, on approaching the suspected

premises had detected the odor of untaxpaid whisky,

received a blow in United States v. Mullin, 329 F . 2d

295 (4th Cis. March 1964), when the court held that

the investigators' testimony that they saw cardboard

boxes carried into a smokehouse (located close to &

fendant's dwelling) at night and, before entering to

arrest the defendants, smelled illicit whisky, while it

might have provided a sufficient basis for the issuance

of a search warrant, would not justify a search and

seizure without a warrant.

Of particular importance in the suppression of liquor

rings or syndicate operations where 3 group of bootleggers relies upon various local moonshine operations

for its supplies is the decision of the Court of Appeals

for the Fifth Circuit in Sigers v . United States, 321 F .

2d 843 (August 1963), holding that where an informer

acts only under orders of the conspirators, the fact that

he is the only connecting link between otherwise in .

dependent operations in an illicit whisky conspiracy and

is not chargeable as a defendant cl(~ not prevent the

operation from being tried as a single conspiracy, and

that the fact that the informer, acting under orders

given by the other conspirators, received the liquor

from the moonshiners and delivered it in violation of

law to the distributors, with the Government's permission, did not amount to entrapment or render the

informer's testimony inadmissible to support the Gov .

ernment's case .

Jack B. Cooper, Miami Beach, Fla., was convicted of

evading income taxes on profits he derived from the

sale of aircraft to the Dominican Republic. Cooper

contended that he had embezzled the funds and hence

under the holding of United States v. James, 366 U .S.

213 (1960), could not be adjudged willful in not reporting these funds. However; the Court of Appeals

for the Fifth Circuit affirmed the conviction and found

that Cooper in fact had not embezzled . Cooper v.

United States, 321 F. 2d 274 . The Supreme Court

denied certiorari.

In United States v . Colamatteo, 331 F. 2d 766, the

Court of Appeals for the Seventh Circuit on May 7,

1964, granted the Government a writ of mandamus to

require the district court judge to try Orlando P . Colamatteo before a jury, as desired by the Government.

After the Government had refused to go to trial be .

fore that court without a jury as requested by the defendant, the judge had dismissed the indictment. An

application for a writ of certiorari to review the de~

cision of the circuit court is pefiding with the Supreme

Court .

In the case of United States v . Durant, 324 F. 2d 859,

another Court of Appeals for the Second Circuit case,

the income tax evasion conviction of Lyndon A .

Durant, Chicago, a pinball machine manufacturer,

was affirmed . Durant charged more than 2,500 items

of personal expense to his corporation . The court

found adequate evidence of willfulness in the facts

which included Durant's disregard of repeated warnings to him by Service agents that Personal items such

as, for example, personal travel and entertainment, gifts

to ladies, etc., charged to the corporation as expense,

were income to him . Review of the case was refused

by the Supreme Court .

The Court of Appeals for the Third Circuit affirmed

the conviction of Morris Goldberg, Philadelphia linen

supply magnate, on charges of evading his persona l

67
income taxes anu inuscur ins curpura-i- --r,

sentenced to a total of 7 years' imprisonment, was

charged with evading taxes aggregating approximately

$1 million . The principal issue in the case, resolved in

favor of the Government, was whether corporate books,

improperly obtained by an employee of the corporation,

could be introduced by the Government in evidence.

Goldbergv . United States, 330 F . 2d 30. Certiorarihas

been denied by the Supreme Court .

In March 1964, Fred T. Mackey, Gary, Indiana, who

admittedly operated policy gambling since 1932, was

convicted of income tax evasion, sentenced to 5 years'

imprisonment and fined $50,000. Deficiencies in income taxes and penalties aggregate approximately $2

million. Mackey has appealed his conviction.

Earnest C. Harris, a coin machine operator of Fort

Worth, Tex ., and three. of his employees, W . Harold

McKenzie, Cecil Lancaster, and Captola Courtney,

were convicted of evading Harris' income taxes for a

4-year period, by suppressing coin receipts . Harris,

who was sentenced to serve 7 years in prison, has filed

a notice of appeal . The other defendants pleaded

guilty . Lancaster was placed on probation . Captola

Courtney and McKenzie were each sentenced to serve

6 months in prison, to be followed by probation .

In Katz v. United States, 321 F. 2d 7, the Court of

Appeals for the First Circuit affirmed the income tax

evasion convictions of three brothers and a brother-inlaw. The fraud consisted of the diversion of funds

from a corporation to the personal benefit of the defendants . The indictment alleged aggregate income

tax deficiencies of nearly a quarter of a million dollars.

Certiorari was denied by the Supreme Court .

On March 7,1964, after a 5-week trial in the Western

District of Pennsylvania, Anthony M . Grosso, referred

to publicly as "Pittsburgh numbers boss," was found

guilty on 20 counts of a 23-count indictment involving

68

I -- -9-..

. g wab bcntented to 9 years in prison and was fined $191,000.

The conviction has been appealed . At the time of the

indictment, newspaper publicity referred to the ',Grosso

Mob" as'consisting of "Tony" Grosso, Sam (The Unlucky) Grosso, Jennie B . Grosso and Joseph. Pino, all

related, as running the "Grosso Combine ." 'The latter

three were charged with Grosso in the indictment.

Upon their pleading guilty to Federal gambling tax

violations, they were sentenced as follows : Sam Grosso,

3-year suspended sentence, $10,000 fine and 5 years

probation ; Jennie B. Grosso, 1-year suspended sentence,

$2,000 fine and I year probation; Joseph Pino, 3-year

suspended sentence, $3,000 fine and 3 years probation.

Wagering tax liabilities, inclusive of penalties, exceed

$6,400,000 .

STATISTICS OF INCOME RELEASES

Individual Income Tax Returns, 1961, Preliminary

(24 pages, 20 cents )

Individual Income Tax Returns, 1961 (233 pages,

$1 .25 )

Corporation Income Tax Returns with Accounting

Periods Ended July 1961-june 1962, Preliminary (34

pagcs, 25 cents)

Corporation Income Tax Returns with Accounting

Periods Ended July 1960-june 1961 (406 pages, $2 .25)

U .S. Business Tax Returns with Accounting Period s

Ended July 1961-june 1962, Preliminary (45 pages, 35

cents )

U .S. Business Tax Returns with Accounting PerioLs

Ended July 1961-june 1962 (274 pages, $1 .50)

Fiduciary, Gift, and Estate Tax Returns, Filed During Calendar Year 1961 (96 pages, 60 cents )

Statistics of Income publications may be ordered from

the Superintendent of Documents, U .S . Government

Printing -Office, Washington, D.C ., 20402.

Statistical Tables

743-871 0-65-7

69
I

Notes: All yearly data are on a fiscal year basis, unless otherwise

specified. For example, data headed "1964" pertain to the fiscal

year ended June 30, 1964, and "July I" inventory items under this

heading reflect inventories as of July 1, 1963. .

In many tables and charts, figures have been rounded and.may

not add to the totals which are based on unrounded figures .

Internal revenue districts are listed in this section by the names

of headquarters cities. Each district is identical with the boundaries of the State in which the headquarters city is located except

for the States recapitulated at the bottom of tables 1, 5, 6, and 14.

A map of the districts appears on page xii.

Statistical Table s

COLLECTIONS, REFUNDS, AND CASES RECEIVING APPELLAT E

RETURNS FILE D

T-ble 1 . Internal rewnue collections by sources and b y

internal revenue regions, districts, States and

other areas . . . . . . . . . . . . . . . . . . . . . . . . . .

.

. . .

2. Internal revenue collections by sourccs and by

quarters . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . I .

3. Internal revenue collections by sources . . . . . . . .

4. Internal rewnue collections by principal sources,

fiscal raiss 1940-1964 . . . . . . . . . . . . . . .

5 . Internal revenue refunds including interest .

6. Number of =turns filed by internal revenue

regions, districts, States, and other areas . . . . .

7 . Internal revenue tax an manufactured products

from Puerto R! .. . . . . . . . . . . . . . . . . . . . . . . . .

ALCOHOL AND TOBACCO TAXES

8 . Establishments qualified to engage in the production, distribution, storage, or use of alcohol

and alcoholic liquors . . . . . . . . . . . . .

.

. . . . . . . .

9 . Establishments qualified to engage in the production or exportation of tobacco products . . .

10 . Permits relating to distilled spirits under chapter

51, IR Code . . . . . . . . . . . . . . . . . . . . .

11 . Permits for operations relating to aico~olic

erages under the Federal Alcohol Administra .

CONSIDERATION OR IN LITIGATIO N

p.ge Appellate Divisio n

73

81

82

84

86

87

8 8

88

88

8 8

tion Act

12 . Permits mla. -~n-g to tobacco under chapter . . . . . . . * * . . . . . . . . . * ' Y 89 52, R

Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 89

13. Label activity under Federal Alcohol Adminis-

.

triation Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

STAMP TAXES

14 . Number of occupational tax stamps issued, by

class of tax and by internal revenue regions,

districts, and States . . . . . . . . . . . . . . . . . . . . . . .

T .ble

15, Receir,and disposition of protested income ,

pro t. estate, and gift tax cases prior to issu.

p.g c

an- of statutory notice (pm-90-day cases) . . . 94

16 . Receipts and disposition of protested income ,

profits, estate, and gift tax cases in which stat.

utory notices -outstanding (90-day 94

17 . %cnT' ,ti ;in,~djd'='ton fincome, profits, estate ,

t petitioned to the Tax Court

(dock&cd cases) . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Office of the Chief Counsel

18 . processing of income, profits, estate, and gift tax

cases

in the Tax Court . . . . . . . . . . . . . . . . . . . .

19 . Results obtained in income, profits, estate, an d

gift tax cam disposed of in the Tax Court . . .

20 . Receipt and disposal of Tax Court cases in courts

of appeals and in Supreme Court . . . . . . . . . . .

21 . Rccc~t and disposal of suits filed by taxpayers

in 'dral courts and ctionis by the United

95

95

9 6

States for recovery of erroneous refunds . . . . . . 96

22 . Decisions o~ courts of appeals and Supreme

Court in civil tax caw. . . . . . . . . . . . . . . . . . . . . 97

23 . Receipt and disposal of collection, injunction,

summons, and disclosure cases . . . . . . . . . . . . . . 97

24 . Receipt and disposal of insolvency and debtor

proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

25 . Receipt and disposal of miscelbuicous cour t

_.,fien cases not in court, noncowt collec.

'ion liti gation cases, and appeal cases . . . . . . . . 97

26 . Caseload report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

COST OF ADMINISTRATIO N

90 27. Obligations incurmd by the Internal Revenue

Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

28 . Obligations incwmd by the Internal Revenue

Service, by activity . . . . . . . . . . . . . . . . . . . . . . . 99

29. Quantity and cost statistics for printing . . . . . . . . 100

70 1 71
I

ANNUAL REPORT as STATISTICAL TABLES

Table I .-Interythal nervenut, collections by sources and by Internal revenue region ., districts, States, and other crew

[1 .111h .usand-fdWi- So. table 3, p. 92. far Us Miss and further breakdown of national total& by wuroul

lndivldwl inecome and -ply..r! I . ..

Internal revenue region, district., States, and other areas I Total internal Corporation

" ... as Income to .

(States represented by single districts indicated in parentheses ; ',,V,6,,nu.0.x

inc* m

UX3 Total

not with .

hold and

withheld and

. and Railr ad

unamplay.

total. for th .rSt.t ., he .. at hurt ..of table) , .If.

aid d bg. It I

T

o

refl-ri

..n t

i-rence

ta x

(1 (4) (5)

UnIsued Statm

total ------------- - -------------------

M. M U. in . M 71. M. M U. sit at u,no,m no. as

S-0,weet -tan -------------------- ------------------- -

Atlanta 4'15: 39as1 "G :'211 " 9"57: '.8-1 "S" I'-M

'' 7 "' 11-1g1 !

5'u

~A 726 115 toe 998 592 916 146: 231 42: 506 4 024

.

7 155

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

C I (Sout h

..

"

489:959 91: ON 369:132 99,265 273,959 so 5: Sig

line

ad un ~gh a

'

: " '

3

"

54

2

111 71 111 %, 310

I

5, 204

p

ZJ kwi i Florida) --------- ----

Nashville Innateire) --------------------

341 9 33

803 001

1 :041 :970

39: 422

184 60 6

79 :596

J281 : 61

319,887

790 167

: 380

87

459,187

213 542

I S0:

937 1

65 427

329

1 :I1 1

35

3,

604

I I 1s:0124

63

""7

' '0: M :

,

-:1

,

"'.

3 . M' ago U'M

7 0 I44: 2

1 .61 3

2'

If 1.

608,903

,,43 2I D 109

627

53,133

523.473

16 1

1,1785,'72? 5

,,,b

So an if llintrd ::: ::::::: 3 45' 0 981

ti

1

2

4 " 1

1 11 7

1

94 079

5 0

25, 7

SO

. 635

,

953

,

1.020

e .

Por a

.

~Conn .,ticvt)-- ----------------- -

his New Hanntushir.)

1,1 :7 1

235 994

5 :9

31 3730

32

1

2:

f193e 0104"

3

S15O: 3 719 :353

7

674 14

--------------

-

Rhode 1

( xLeund) - ------------------

4

69:5V

79 :

Ole 351,232

1 1

68, 971

1 41 0

277 , 631

4 0

13

,

: 3

4 617

Oaks-Ainf,7 ---------------- ------ -

as -------

b )

Do, I.

- '152: U9

7,344 1 71

17, W

1, 171

M nl2*6:461

4. 121, 721

an

931

166 775

'76.43 7

.787 :743

1

93,463

,

1: '09"4

58,739

_ ar

t . . . . . .

,

F to- North Dakota)

: 3OR

34

, 7

9'

64IS2. 4

78

81 7

817

2

222 736

50 671

41 006

653 : 13

5

1 4 6,22 1

t

g ,, .......

Mi vou es,

0. he -------

N

959 90 3 21,777

""3:

7

7"0'

,

"'TO 7'

1

2

' ''

9

914

' 3"

allesu

o -

-

St Iowa

" `1

664. US

"8'20 5

487,1 7 143:7.2 3, 1 : 173 1 4: ..

-

. Paul ------- M1-re-le4

4 R

2

1 : 764 .'47

53I 8 :30 7

12,11

9

28,79 1

22 711

6

1513 23

05

7

P10 1S: 453

3

191 : 500

12 , 3

25 70062

11 .0iold---- as (b) We .) --------- ---------

c

1,353,122 246,388

:0.7

77 1 241 :D28 521,369 760 7,429

entra l

Circ=n:- -------- ----- ------------

-

-------- SO '13MI

2 :2'94,'Igl '1"57 :1795 On

Say

*1 : 1''96.

78 1

3 111

I 3

a1 : '165:358 ' 213I 017

Or .. land ----------- I ------- ---

D t

4,4n,311 963,413 2,819:108 982

'1

2 211 7 13 4 * 141 163

e roit ----- Michiga n

[is

--- Indiana)

Indiana

( _!_

fZ

12 :3191:117

ta 350

3,087,90 41 5

1 2 42 7

3,966.432

1 737 4''

SIf~

436

34

3 : 210: $ 5

"373 '

, : 7 7 1

935

10J41

795

L unli l ------ --- %ftV~Iky )

Park. .. hur

1 .1.10 171: 121 '1,1:701 173,739 ISO : 441

15,

48D

6,

044

ges. t ------- -

Alb. Mexico) -----------

-

th-*

'"I- ------- --------------------- -

P 7 a

398,255

"251'737

58,97 9

3n 93 . $so

2 7

311 .381

12 1

94.478

1 57: %U1,

22Z 292

15in 98

'"

1

4' 2 3

63

441 .740

4, 54

444"

' '21

A n _ -

as -------- -

Ch

W

. . ..

'

2,406 :260 3634: 2

,

'0' .. . . . 91

96

~

734 6,425 1 5:929

n I

Dole

. ------------

.. .

W---- " ( I

.107,02 7

1 1 14

3

8,075

3 111

N

91 796 :

1

N I 1'

31:990

444

' 1

4 26

1

3

75

'

676

1 7

)

D- -1 d

Uni

1: 3 8 : Si

3

If

.2 101 I O 34

IS8:

NIS

O

8

42

S4

4: 9

,

": 1

3

6 3

t

a

,

N.. Orl .

3

1 ISI

~

4, 113

1 SO1

117

1 I S

I

71

I"

4

1 W

h

. ..

Ou, an

.) -----

Okl.hD- CIij: :: : :::

2. :3 17 7,

3

7 663 :929

2" :

71

. I

In 75

:

7 32

Re e

-

---------- ) ----------

I,D) 472

738,063

112701.412131 517131: 1211

9

17,7 2759 :0 5 .6 1 7

350:44 86

343

26,914

7:040

4 780

b --------- --- b -

c s

I? 117' ' a 31'sog'931

, 42

W- 2 0' 'a;

M

go'

'a. am

. b

inuff.kfl

I oE

1 22 72

2:2101:1674 32 1507:706 I,W864 : .957..

113

578 :9 5 429 6

73

1, 244. R0 5, 9

1'

.

c be

Manhattan c) hot -

2

116

4: 626': U3

5 116 11 2 .9:"l7 71 :121t '12,26

1 2

16'7: '151

07

16 3: " 'N 7

on

------------ . . . . . .

- ------------ --------- -

62919

62

,

3D.: 7"34a I :Igg Z

,

'102

'4

17 .I

M3 ' SO

52, 11 1

T' 'a254.

1 .4 .44 3

- 0' i s .'

war

N k ------ I -

as a be w -------

3: 5 13:804

1

747,610

72

a '

2,345,134

2 312

Of 1

603 , .36 1

1

"

.

1: Ig 7 ,

2

1 ' "

.

1

. 571

3

SO

34 :04 2

go

14

'

Pll- it'houngh- .r d , :

------

2:995:93

So

3:06

:

: 3

9

052 4 1

5

2 ON: 3

1

:7 81 :

8

14 : I D 23:87 0

D .,~ . .

W11.1,sw -----

1,923 VA

age: or

251 :5r3

505 7,

1,41212,111

0

. 747 1471:114

a 915

See. 043

307, 878

26,037

2

11,366

4.95 1

Archora ~ ..

'81 "4' 7t'143 '12 '124 "1"1178'

as.- 1MM

1

6'

eoh. . . ....

.

1.,.

924

30:

238 11 1 110

,

14

. .

121 :

S27 --------

95 5

Had .. . . . . . ..... .... J..n . 117 11 7 21 44D

1 5 1 :9 19

53:616 81 5

95

250 1,290 Honolulu . . . . .

L

293: 453 :

2 at 7 2 D

J It

50,646 174:311 1 57 2.164

ee (.a. ---- -

Ph e i

6.061,185 910,449

: 5

554 74 1,

" 7'

3,

34 SO

&be 55,IM o n x, (A --------------- -

Pt and ::::::::::::

427,55D

4 6 378

02 6

56

1

Ifl05 1 Ig

3

2":

59

3

'

-

n

7

2448~ 19448

0

.9

1 05: 5 :42

9

-

I~ 11

1

111

4`12

.2, 653 6 :2 0 5

funr t%, ;

..... ........ ...... . :

324 575

3So7

:493' '

7

252:49

5

" '

5S 070

52 731

1 : 893

22

196 374

I ?

103 '2 :Z"9 47

So .)W-) ------------------- 4,473 13 612 11 3 141 92 4 664

1

I ,, ,

24 42 577 33 95 9

51 tru. ----- lhlngto~

1, 382:

942

: ,

ISO 77

1: 077 M :

2,3,

944

, "1, 7,

03 ,

ROD 11 :044

-

Puerto Rim

Oth.

--------------------- ------------------:::: : '108 2 : '23 "" "': 1" ' . 6" 2 m

69 6692

127

32 312

60 2 . 9

215 3

4:437 12: 60 :1 -------- 3 : 21 2

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

ad trlb.

.

, , 66 159,179 55,431

6 8

be M"It ;' -- ------------ 118

-L- 14 13 St . ----------- -

TI. . ad 1. -- - --------- 1 0

-3

:8

~ DIS . . . . . . Withheld taxes I, .,

Federal amployehes ---------------------- -13,715 ------------ -13,715

I

------- -13,71 5

Tools for States not sham above

California.

I 0 1Is 41

1 11 111 7 1 11

1 "

2"

43.3" 13

'9

.

Illinois--- -- S 17 : 6 : .

: . : .6 5 597 : :807

: 137 SM 4,3D9 61

ge

24

'

1

66 6 9

I

Nee York 21 111 111 1,13, 1,413:624

~ &`-

78

60a j7 :

1 0:106

d 5

Ohl . .

iWf --

6:,93:373 1

52

453 M

P n.Y - - --------------- 1 at S `17 2 0

T- -------------- -----------

7,088,966

4,240,209

1: 23 1

716,

i

837: 36

1.

942,185

72,9O2

15,599

51 : OD9

31,14 6

Footrests on p . $4.

73
ANNUAL REPORT 0 STATISTICAL TABLE S

Table I .---intensal rinventrat collections by Sources and by internal revenue regicters, districts, States, and other areas-Continseed

linthousandsotdollars. Sao tibia 3 . P. 92, to, to . friend further b-ludaern .f .Mianal total, by ..-I

Alcohol I . . S

Enisele...

me) revenue r. ons, districts Star g .,, an d E t t tax Gift tax

total (SU M

of .1-mrDistilled spirits taxe s a .

. .... s a e

2'

31

tea represented by ;ipill districts indicated

a t

:

4

"

3 2 :

and 66)

o,

'a =:d

d edifi . ccu ther 1 .

pirathesel ; totall .1 other States .1boam a

y ~ ti.n - twel attarn of bible) customs )

(8) (9)-- (10) (11 (12) (13) (14) (15) (16) (17)

Unnand Makii . 1-1 . . . . . . 2. 110, 112

-

in. 312 of, 960, 232 1, M . 499 2. $75. 110 Me, an 2 .-1 M H. .9 14 .20 11 It s

awas Mileve .---------------------------- =5: M452 2L 31101 14 3 2 1 I'M' 1 :,57 933 1 : '71 2 IS3 : 704 "339' 1 Ma

Me

Atlanta 1 2 74

13 245

I SIR 1 8 :

1 198 1 105 ,1 11 37 4 5

'Ir ulh w=---~ I "~* 1 :

,

7 1: 542 18,628

,

1 : 208

1 712

828

111

652

1 211

(.)

42

: : :: : :: :

65

25

1 1

22

R h C .

Greensboro Nort.

or

28 137

7 117

5, 12 3

971

1 .21113 11

: 762

' th 1 ; I . , 10 : : : : : : : : 75

4 3

1:,In

,

9 ,

948 5,494 14 117

ot 14a 7. 1 ~of 2

1:1'2201 121 : "7951 1 21

53

34 19

N..h" nrsSM .)-- : . . . . . II 1

I

8 456 2,63 7

is an

if

M in

. . . . .

1 ..2 1, W IS

11, no)

-- , --------- I-

,

3

' ' I'H 1

29 -------

Auglp - . ~-S;jj~j - 3

:

) 62 14 2 I : "871 187:590 94,689 ff 1 1,124 O 2 27 85

30

y .mmp).

Burtingtop ------- - . . . .. -------

1

1 411

5 '

1605

629660 4,064

1% -

4,001

.7 427

3,971 0 56

1

... . .. --- -

- 869 ---- -- -261 3 .

----- -

1 0

rArn ) -- -

N %.t ic ut, h i r .; -----

1 '

5

9:9 0

6 9 6

6,894

136

3 411

197

. is, ___

i'.

.

689

69 118 1,,$

P 111hd. I.lrd)-.- .:::

:

16 07 2

Seem

946

21 134

21: 3 3

14 7". Say

1 .,

"8172 a.2,' . N! .7 : In544

31111, . 4.1sk 2. ..

----------- - .

Ap.njoen.. . . ------------ k

"

p

a

20 551

12

'

10 87

433

6.46

70 111

10 2

111 ~ 021

62

94 256

- ------

34.668

--- -- -

41 11

-- .

1,

6 1

111

2

5

. Ch , w)-

Dr.

fee

)

.

..

17:17"1

1

: 30 3 1: 4

' 45

, :

-3

240

1: ,

67

.

----

1 : 2 90

. . 144

65

..

...

.

-

. .

F . Nvt D k.

I: IS 113.. 1- -11 117 505 2 898 2 272

. . .

. . . . . . . .

1 2 2

i : : :

-

o f

l 16

2,

1 "1 " 7 "

,

R %5

, 1

08

, 1 3 10

4 3

a .

-

!

id"iturl

)

0 NO, k . he . ----------

e

1 i

j~:

762 2: 162 2 .0 : 1 11 94 119 : 7

" '1

6 36 33

'1 1 1'

. . .

M

no

. _: :

S

SL . .. --------

t Paul

m t

010

2, *13 114,171 11,119 7: 07

: 1

3 4 3 33

6

3:

17

93

3 185

162

319

3

7

So

. (b) hel

p

S . .. ... ... ...

pringfield --- 21:643

7,0 313, 265 272,643

1n 44I

246,328

guu* -

------ -

no In

242, 9

or M

,

S 114 2 an U S

alkned -1 See. . .. ... . .. . ... ... ...

------ -

~ ':' *

Sea M

34 855

:12 .M..

:

4,S43 "2 :1, 0W

549 469

1. 131 : 704

33 414

l ,~ 80

11183 . 434

... .. . . . . .

7

" "

116,363

3 746

,

1,347

4'

.

369

111

2

9

d b l..

Detroit ------- -

:

318

51:914

134 M

455

, ,

974

4'

,

"2 2'

1

15:1

, 7

21 117

got

30 Indian . )

Ind 'i

l "

2,

22

1 :

943 171 11 275:6.0 254 :38 0

8

6,17 t4 14 1 11 :11,6 31, 132 2 D

so

31 .. . . . . . . . . . Kentucky) -- - i.

L~ u I

172 190

:

068

34,

$64,913 549,91 7

340

9,746

,

2 293 32 1 4 WOSA Vi roini .) rkerituurj P .. . . . . . . . .

9,113 681 18.101

'

2,860

11 $2.

2.

29 895

-

a,

in

. . .ff--

tato a s

wthemSt

A

"

in, no

21

Me

247

79 26"4

t 96 ,

94

,

---

- ----- 91 3

R (Q- Z .

:

52 1 19

9,076

579~ 879 43 .135 11,313 1 1 2

140 ,.. .n . . . . . .. . 1 IR S

1 378

IRS

697

10

614

90 430

4 9

629

40

497

--- -----

- . -

--- ... ...

-

. . . . .

17

1

Do,,

D ~'C*oki'radk)! ~

,

7

99

,

995

5

1

1

7

I

33, 13 1 2, 176

, kj

,

. .. .

-1

16 1 . . . . . . . .

enew.-. . . -

Little Rack 96 1

a

$91

: '

22 25 3811 62

. . .

.

. . . .

7 798

45

350

1 1

--- : : :: ::: : 1 3

Saw '""

L.

'r

7

'9

: 02 1 046 64 503 33,867 15,290

5

7 118 ,

2 40 23

Ok,,h - CIty ------- ~Olkl.homs ) . 21 11

:

011 .604

4 322

96 5

667

6

$69

. . .

- -

496

. . . . . .

79 4 Wichita . . ------------

one 1,k ml- ---- -

Is:

428

In in

1,672

47, in

2 .

test. an MI . .1 =,-

. . . . . -- -

in, US

"4: '15.

----- -

-2 " "267a

1

-:--

Albany

----

22 - 1 3' 3 7936

22,936

51 5

05

11 .94 5

64 320

4,425

2 944

.

or_ --- - 2 538 50 330 25

kl Sao c belo w

b I.-J: :

54 393

40 M

:

4 949

1

63 416

" Zo1

11 117

. -- -

30,927 ,2

4" 2

. . . . . . . . l : : : : : : :

Manhattan . ,

below 39,366 37 204

1 .

2 39,490 20 7: .2

1

87: '

34 128, U3 57,620 932 172 29

--- -

Id-U .I. Isolven or I W. an 1 .M 493

"M. "2 ':' ' 1 : '1"73 3a:11544" Z131`3 31 d and D., p .!

ftltismure- -

, - ----

11, 7 62S 271 962 l 7. 9 0

7 '93

169 1.7

113 111

IS, 0 47

1 11 111 512 1 54

jt

Nomrk- . . .

Philadelphia: :: ----

M 10 : : :i H

75

40 679

83 52to"

4 :3M

71 570

' '6 4

333 08 7

991

32 7: 6.2

l

.

38.281

7 175

,

11. 7"

1

------

7'P8

70, 2%

45 :259

I

1 : '0462 . 37

t' trt

037

33 48

1

14.416

, I:

12 6:066 7'! 71 : 45D 4,513 -------- 15 28

R han 9,398

6 :

2 690 ,84 3 1 ---- --- -----

4 7

64

13

4

I-sew ever se, . . . . . . . . . . . . . . . . . . .

(Atalk,

3SL W

IS3

Se, n

(1

J.My US

2

352 Set 147

136

250,034

'32

It 303

11

In . M 2,472 2 .

4 7

A IS 2 424 141 5:131 85

8

3 --

1

8

3

III

II.I . .... . . . . . . .

3

:3 1

3 339

1

917

91:01

"1

12.7.151 54127 1

400

---------- -

69

-- 78

------- -

------ -

Honolulu . . . . . .

(S ( ) W

1 72 7941

10,

159 413,038

1'

5:363 70: No 32:401 37,12 ! 113, 1

I

Ar is . . !

15

"' 7" 1 ED

1

: .. 4 31791 2 2396 . .

. . . .

1 999

. .. . . ,

91 2

Porthord

11 ~

110 72, 2 : &U 7 329

17

. 2

11

. , . . . . . . . .

11 Reno— . . . . . . .

25

M

870 304

4

23

11,411

367 2,280 7

---------

---------

---------- -

. . . . . . . - . .

------- -

. . . . . . . .

7

Sell Like city ..

::_:::

San Francisco. .

M

107

:

51 :

41 6

590

e

087

97 314

2

114 12 , : a 1 111 :0698 0 1 2123:199573 111 : 4834,2 114! 13477 7

hincton)---------

ads- -f

26 170

6

542

I

,

So

47:t~ S"9 : 39 :205 --- 38' T a872n -------- . . . . . . .

Puerto Ri.- ... ... ... .. . . .

20 gle S54

627 1 . . . . . . . . . .

Other . . .... ----------- -

ndistribut.d :

.

2

T. an

.

-- ------- - Withheld taxes of Federal employoon .----- ----------- --------- - --------- ---- ----------- -------- --

Totals for States not shown abov e

C.

111 :931 IN 1'1 :173 '7 '

919 9125

014 23

3,17:194

338 664

228 96 7

'

55 574

34 6611

169 87 1

289 99 .

172

14: 4 '

2

11 214

1 1 of

How 1a,1 1 17 1 47 1 11

.

11 31 117 9 226 :7 21 311

Sout

Ohl . : : :: : :: : :

d

i

97 : 174 : 6

16

034

742: aT,

795 57

165: 1

1

217 0.

31 :51 ,

1 1 7 6 9

7

2:'5'33

1 1 3 P u, I , n " Sp

93 497 14:773

.

670,309 43, 763

1 ~

11, , 11,161 4" T .X. ~ I

p

w

Into

(Stur

Ib

aFootiche an P. 94 .

74

ANNUAL REPORT or STATISTICAL TABLE S

Table I-Anternal revenue collections by Sources and by internal revenue regions, district., States, and other areas--Confinued

fin thousardsof dollars. See table 3, p. 92, for wntes,nd further b Mason of national total. by rourcial

Altshol t-xss-Co tinte d

Internal revenue VtVI .ior n, districts, Star., an d Winn, cordials, etc., taxes B .. I . . . .

fares represented by Single districts indicated i n

isirinth.

.

..; total, for the, States boom at bottom Imported Occupational Imported Occupuet onol

of table) Total glIntend

Domestic

t .. . Total I. ateel

Domestic .

I.... 11

by Customs) by Customs)

(18) (19) (20) (21) (22) (23) (24) (25)

Unmade a-- tatal ------ ----------------- Uo'gaz $ .an ..'Tao

-

tan set 936 6 . in gat an 4'sM

lawt.- -1 - --------------- -- ----------- t 02 MY 1, us

4110

53 0

57

U . ago

5 04

6

211, Men

1 11

Sl e

Attant, ------ - G2A:b g Ims 5 7

0Col 1 r m I ..n~. h. -aIn

South C , ,

4785

2 '1

252

12

. .. ... '

iii

1

103

, a

7

119

4

1 D

.. .... 1 . 68

109

[N

h C: rol l

G-milm- hurt

re 1

14 9 1 ID4 120

, ' --- ----

10 1

M

Jac

F

Jackson.- . ------------ Mississippi)— -------- -

Irson'll. Florida) 1 2216 ---- . . .

. .

.

.

313

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

648

G

260

82

18 .294

--. . . . . . .

162

....

18 ' 004

92

..

. . . . . . . M . . . . . ------ -

Xill- . . . . . . . . .. . '

7

121

(

.) .

....

. . . . . .

.

12 1

dawshent son-. . .. . . . .. .... .. . . . . . . . . . . . . . tus an t2ii

go. I

.

a

I" So an

.,or ~or Ime) 1"

6. ,tts-)- : : : : : : 1 1.14' 1

357 192728

. . . . .

. . ..

9

86

13 436

1 1

132

-------

-

13'

7 5 _

. _ .

1 lin n

a l

.

- (*) ------ -----

58 , 5

1

... .

g,.n! . . . . . . . 4

Mm .d. itti: :

c

- 350 111 i 23 1 V) 863 is 79i 48 Portsmouth-, a). -

rRaw u s"=I- - -------- -

.

---------

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

. . . . .. . 41 . . . . :-- . . -. .. . . . . . . . 4 1 -

Providence— lod I ----- : : : :

Wld Six . . . ... ...... .. . . . . . . . . . - ------- 91 Sao ~i

tno

. . .

71 Set

.

in

11,

3D9

M,M

21

an

11 .294

M. no

4

= 90 s

ka

to) . . . . . .

I

. . . . . . . . Ri - -------- -- 1 39

995

---- - -

268

---------- -

24 681

3 9

4

: : : :- : :

C'i'

below) . .

.. w

e

Do . J.06n .

1,772 I. 1

" 17. 8

25 24,

367

. . . . . . . .

. . . .

,

- ------ 248 I g . . -

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

-) I "I V)

------------ 17 2 Alih.r. I.. ).. ~ 193 113 V 2 111,114 60 1 4 21 3

1

1

1 2 On athnisk

.

)

I

------ ' --- ---------- -- ------------

.

---

8 58

7 .

.

. . -------

:

a 72 3

,

t.

St. Minnesota). . . .

.

j j

'25853

99

7

73: 4

7

' 30'

25 735 :302

3 333

1059

Sp ' 1 - ..(b) below) : : : : :: : :

3 . .. . .. ...

. .. 1 1 26:312 -------- -

6,

284 28

DenInd -1 Sea . . . ..... ..... . . . . . . . . . . . . . ------- -

Cin,innall

-' ' ') box **

"621o ------------ M 3'354984

435

122

IN, m

13,003

M i

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

105, in

12 11

=I

21

Cl... fiimd--: : :::: :: ~d) loel..~ : 915 213 526 17

I '8`

56

8: 9a,

2

9

Detrall --- n)---- -

an!"! a

1, "A 237 1 .390

'I

1 39: 0 0 40! 3 112

'

22

Loui Indi n:'.pall- Indian 135 is

. . . . . .

. . . . . .

942

117 21

14: '0'16

. 0, ,

21 :

13,947

3

,

(IS

22 22 499 -------- 387 11 1

- 426 Us

1

(hjjj st In us a, Six Soo

A"' o

n

A.Nn--------- (So. (f) below) ---- 372 193

2 ( )

179 31,450

9

105

56"iff 36 10

9 Dallas.-!::::::- ::: ::: . . . . . . . . . . . . . . 1i. . . . . . . . . . .. .

-1 . . . . . . . .

. . .. . .. . . . .

51 so

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

- . .. ... ..

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

so

Dan .. . . . . . 193 39 153

1 30'862

i 5 9

Little Rack------ ----- Avkanus) ----------

284

---------- 263 2 42 . . . .. --

W

42

Ra 01 w10 CIf -:- ::::::

99 11 1 11,41

SQD '677

1

. 123I ' a , voris ,

Wlchlts------------- rm..) . L: : : . . . . .. . . . . . . . . . . . . .

.... ... ... .

. ... ... ... .

. . . . . . . :

. . . . . . . . . . . . . . go

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

. . . .. ... ... . . . . . . . . . --- 9 8

"w"" Yk

ever --------- ------------------- -

A l

IS. n

15 1

1.2

1-7'174 "7 : 038"0

Su n

94 l en

k

S:: c1 Zb . . : : : : : : 2,392 . ... .. . 2 317 5

e

...

----- -

--------

71 5

'

18 9 1 l 1

. . . ...

... ... . See c below . .-'- 9,553

9:

4.4 1 22,992

095

22 18 5

Manhattan ------------ See c below . . . . . .. .

MIdAIN .H . MI we . . . .. . . . . . . . . . . . . . . -

6,04 5

' S1

4, 56

7S`

1,853

" "'

36

T

643

1" '

2,096

111

11 :36 7

1"

199

age M 6 6

Baltimore ---- ---- N . ryl. n d d .5: ::::

. 4 1 : 3 7 698 30 27:648 139 27 : .0

6 9

~Now . j

N w.,k. . .... .. . . . . .

11 = . -------- b : w - "7'S3 1 62 3 o

f

4.:1'6 -------- - 't 1'76'

3 954

1151,

1 1

It ,h_ . b ,.w

F

Richmond ------------- 1,ginil). .. : :: ------

1

1,731

. . . . . .

2013

I

241: 065

3125

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

22

2 .

. 1121

D

Wilmington--- . . .. . . . . Do ---------

"w "we"

I I

69, an

--------- -

m

----- - . . .. .

"' no '1"''

.. ........ .

.

W

. . . . . . .

"- age

=C -: n A a It

,

'!

(1) -i(

----------::

3 1')

_

17'

. I

dl, :: : :

H .I .- ------------- art -- ----------

------- -

(*)

- ----------

----------2"

47

1.6 7

47

.. ........

.

153

. . .

. . . . .

1,63 1

315

2 4

H . .I.l . . . .. . . . . . . . . . . 2

w

e

Los Art - - ---------- " So w)- .

. .. .

2 7

1,6'

1

2 5

604 5,027

0

38,766 496 38 1 12

S o

r._

Phoerix- A n .)----

1

4

. . .. .

.

141 1:27

" (*' 7 1 6

. 5

: 2

2 796

1 4

4 7

as.

Portland. :::: :: : : : : :: :

...

.

.

go o....... . . . . . . . . . . N d

..

. --

'

151

----------- -

'

2 5

--- -

--------

--- - .-

06 2 849

2 6

'73

1

---------- -

,

--------

2 2

3 6 Salt

k' 'It'

itrain

n S below) . . ....

L' . :: 53,056 --------384- 52.555 7

11

21'773 --------iiii- 2 0:182 106

Saint. . . . .. . . . . . . . .

9

54 4

914

. . . . . . .- 29:010 34 111131 1

of #.own0faves' opareases ---------------- -

Puerto ofco. . . . . . .

So

14 14

. . .. . .. . . .

oth

thadistribu. 'ii'd-.---------

---------- --- -------- --- . . .. ... . . . . . . . . . . . .

. . . . .

. . . . . . . . .... ... ... .. . . ---

. .

. . . . . . . . . . .

01positafy exelpts. . . ........ .. . .. . . . . . .

d' - -

Ttonsferio

t

. Government if Guam - - --- - Withhold taxes of Federal employees ------------

I ------------ I ------------ -------------

-------------

----------- -

IS

Totals for States act Shown above

58 7 998 57: 582 117

~ 6.

58,593 264

7"73 861 5 909 3 :955 74 jb~

no 4,2263 14,021 4483 0159 754110 too So cfiller York ----------- 1

2

13 025 9 32, 069 2,717 - 338 657 _ of 96 0

P .spsilvani . .. ... .. 753 Sit 2

2

32

1 . 3D

10, 1:126

011* - ------------- 1 : "1

3

': 362 7

n '~:

430

253

T . . .. . ... .. . ... .. . 2'423 193 31 530 '925 1 1

Foothrot . on p . 84.

75

U
I

ANNUAL REPORT 0 STATISTICAL TABLES

Table 11-Internmal 1*v.nu. collection$ by source. and by internal revenue regions, districts, Star", and other amuss-Continued

[Intlicuundsotdoll .ra, See table 3. p . 92, for tax lates .-d further th ... Lt.- of national total, by sciules ]

Tobacco, tax.

Stew tax ..1 d-...t, ad othe r

internal ievaus regions, districts. State, and other

,

net ruments 1 1

..

. . . I -

M .- Set. b 1. b y

(States represented by tingle, districts Initiated In

l t brytto- Total Cigarettes - cigars , fact . ad Other is 7ot.1 posmasters Istrict.1 U blI ..; total, for the, States al-- a

.h)

tobacco A .. .for,

(26) (27) (28) (29) (30) (31 1 3111 (33)

Untried Ststm assal ---------- 1, 052. W

L 97g, &75 M jy,~ 2~ 2111 an. M 5s, M M,"$

93 3

F 631

4, an on

1: 6,69 2,4,9

1, w

42 0

Atlanta . . . . . . . .

Aislain . )

I

639

121 . . .

IN? - --------- 1513

741

409

76

104

JS

=

South

.-- 2

1,

7 3 24

2: G . . . .

4 903 35 1 122 ,068 54

[

rth Carolina 1.230,312 1,2 ,

,

----------

,

448 340

1

M . ... ... ... . . OB

1 : Fl id a

.

------- 1169

"

. . ,

- -- ----

. . .

. ---- . . . . 733 -- ---- ---------- - -

' ,

1 4

-

' ,1 ,

2 41

1

S

59

or )- .

I ckm ii'llic .

hAll nn-..5. .. __ J : 740 3, ,

I liiii 11 1 :2 10

1 :

003 207

as . . . . .

lakin"vess- -a- -------- . . .. .. 20I

as ,

V)

.

V)

21 6,23

2031

2.13

191

s'"

10

August. . . . .

M ~_i-i~ ----------

19 9

9

1 3 US 1,204

2

2.60

Boston . . . ..

Mr `?

m

112

1

13

NuA,jn

d ------- Co

~ _

24 502 9 7

7

5

59

.

r

Par N -Hams 2 - ---- --- - ---- ---

234

378

1 4

R 220 IS $ Rlbd . Island) 3

t are 1 . 2 . M as 22, - 417 Me

mmvvraa -1- .

Ab.,d..n- . . . . . Dakota) ---------- - ----- j, 157 --- -----------9

. . . . . . ---- -

1 140

--- 196

11,837

I

70

1 .633

1

6

10,204

I bl* "

D IgWii : -------- -

,

. .. . .. . .. . . . 877 $7 0

135

7

3 4

. . . . . . .

.

fi~ 37

V)

11

.

1 4

Mfi. 2,791 1,195 1, 596

onruhs . . Nebraska)- .

m "----------- - "

1

_ . . . . . . . . . .

---------- - -------- - ------ r ------

2

692

:7111

08

42 1

1,75,71

2

7 0

1 :21 1

93

St P 2TZ?- -. .1 :-::

V)

----------

'

97 97

Springfield- 1!* Ib) b!ll*! : :: ::: -- - .

4m I

a,-

-------- -

as

------- ---- ~ . 411

c_ I -am . . .

b .-

,

19 ZO ------------ 1 33 1 :672 7 62

1 Cirdirst :j l

Cleveland ,31 8

3 ' *)

0 1

' s

639

7

724

IS

31'61716 ------------ ,471 6

Detroit . . . ... . .. . . .. . .. . . . . . L' 7 7 9 ----- ----- 779 ------

- ---- -------

:

20 1

wo

880

436

321

494

. . . . . . . . hj j ::: : 396.797 391 694 1,991

874

(

303 265 38

Piukersbuffil .. . . . . . . West At 9 InI-)- - - - ------

1 2

1 .1

(.; 2

39 ------- . .. .

11-Hv~ Mam . -- ----------------------- -

1 1b, I -

'

-i - : . . ..

--- )

38 7

1 963

225

. . .. .

. 1, "1 6

A __ . : : : : : : : : 3

j . . . (

1

I . .

99

. . .

- - -

. . ... . .. .. -

.

1

.. .. . .

1

25

ch.youn- . . . . . . . . . YOM ------- -

Dallas . . . . . . . . . _ . . . -0) -1-0

--- ------- -

------ j- . -

- - -- -

-------

------------

g, 67 7

.1,414

2, 13

833

. .50 1

Vale ins. '` .- --------

Little 11~,k.....

. . . . . .

. . . .

.

---------

.

. .

.

.

... ..

. ....... 489

Si g

1

35 7

903

13

6

No. Orleans_

Oklahow .Ity

C

:7109

01

74 2

549

36

152

-------- . ... ...

---

WIchJt._ ._ timnsths) . .. ... ..

ass I U aji,~ 2~ U, m

. .. . .. I -----------

Y -------- b

At a

5k. --- ----- 1:: 1~,j b :.*wwj : :

4 2

127

3

... . ~1~ .. ..

42p

2

1 .7

520

'4

. . . . .

. . .

Ill

1,52

I

582 43 108 11 393 63 94 2,028 61,9 1

Us. M XT = 29,295 3.m

: 7 J :2'02 1 :03 firladAiNkentle na0ser .- .. . . .

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

. . . .

it dDC ) 13 1ti -

(M

27

( ; 1

2 25 2 23

2 giz 2

091

92 . nso, -----

. I.-F), N.-rk 126

' 9

660 12ifig8 3

b

614 ' 3 61

ill1d,11111

P

:

26 398 4 25 1 2 5 451

1

1: 72

- -

374

,

f -- -

49

P

baus"ll . . . .

662

495

-------- -

159 997 2 . 066719 2.406

V) 4 1

772 1 :539 2 3

Richustrand risfirla) D ,.

---------- -

wilmingto Imnser .) . . . . . . . . . --- -------- -

.

,

___-

.

- -- ------ - -------- ji

:

489

2

66

1 .42

haverever, real

: -------------- ------ -

A I

I.) . . . . . . . . . . . . .. . .. 8

m mi - 239 204 3

DOI.. .. . . . . . . . Id

. ho)-

: ----------- -

V) 239 223 1

Net . . . . . . . .: -------

. .

.

Mo "m

. .... . .. 10

426 20 40

l

thin lulu .-.-----------

N

. en

.. . .

. . . . . . . . . .

t

N)i

60

4 32 6,664 . . .. ---i6a,

6,66

ow

nif I. .... . . . .. .

. (

Los f

Miceli --------------- Arlsona) V) 914'97 869 12

Portland_ ------------

.S

o

Ran -----------

C

.. . .. . .. . --------

463

318

31 2

99

1

21'

So I Lek@ CRY_------

Utah

. ..

-------- 62 V) 4 30 21 1 010 13,0117 2:00

So, Francisco . . . .. . . . .

W

h 2

2 843

613

1

2 3

as inif

I

-

am . ' '"

Puerto 111co_--_--------------- m:-------

5 957

-

5 :S 5 7

------- -----------

----------- -

82

--- -

Oth -j--------------------------

- ---- ------------ ------------ --- -

Undistributed :

:

:

"pv : . : :::

----------- -

'_

-------

iritmaW1Foi liiii;w -: 1ran1 : : : : : : : :.,;:jtpG

Withhold tiloof Federal amPIoY-_- :_ . . . . . . . . . ------ ----------- - ---------- -

- _ _

----------- - ---

. ..

.

. . . . . . . . . . .

Total, for Star. net 11,1- -Mae

122 1 17

-

'"

2 74

"'

13 007 8,66

; 111!'no 1T "!

157 0

10

I'l 40 7

I

-

1 :

. 2 On 6310: 36

c) New Yolk -------- 1 7 1 13 163

_

6 So

T

7

,

'

-- - 6 7

d Ohl-------- -

i

1 5 8

I

_... ...... I' q2 1 .

17

1

got

st

S 4 374

: I f

~ 4

. Parnnyl . .. I : : : : : : :

.

27 : ;50 4

1

25,78 7

99

52

4

V)

.0

.

2,173 3,4 6

: . . . . . . . f) T. ... .. . . . . 101 ( )

5

76

Feenotes . n p. 94 .

,1~ ANNUAL REPORT gi STATISTICAL TABLES

Table 11--finternal revenue collections by somme, and by Internal revenue regions, districts, States, and other amos-Continued

linthouundsotdollam See table 3 . p . 92, forts, rates and further breakdown of national tritals by Nunes!

mar .f.cur-s' ..,I .tv . . .

Internal revenue re ns, district.

. States, an d io m t R di d

R.fngarat.!~,

f

om r

are.

Tires(.1milly

or in I o ~g f

o or

V.*182,

h i

a o a

televisio n

h

roessirs . ai r

conditioners,

t l

Oth 1,i

later r .p.. .lt.d by last. districts indicated in Total Gasoline Lut~ricalin&

rub , ,

t b

c .sa .

b di 6

no

--res-lips "mn'.. Ir-cc .:a .cand.

e r

parentheses ; total, to, other State, sh.- at befit.

0, at, . innodr u es,

tread

, o es.r

an

&

pon .nts etc

zoa, r ,

.1

table) rubber .,canzori . .

, .

appliances

(34) (35) (36) (37) (38) (39) (40) (41 )

Unleavill lHatev, -1 . 6, Me 2, M, M 16, US 4111 2 . M . V~ M . us sume, Us ager. Tas

urth~ 1 . Us 21 770 4

, m

7 "1 "12

Atlanta ------- 255 J3.301 74 1,315 2: 428 it 96 1 :024

rnn hM

349

2

7

"

J

52 15 11305

2

2'89

C j, ::

lrC'rbj~* n

G b N*.'I'th

7 620 6 71 0

' ''

154

95 2 2,1 71 50 $65 747

re- .. . . .

Jackson Nippi )

"'

5:1 .4 1 738

532

1

?

1",

71

_ ---

Florida) .-

:

231 7 56

"

2' 1 117 2 '

9 644

Nah,111 ------------ (T ..n-5

1

:7,

.

.11 69 140

12

7 1 : 1 3,13 . 5.001 1 :471

I - --_----------_- "N, "1201

is, asks ,an

5

..

sk .. .

Aujust ;______ ----- (Maine). ..

Boston

48Z

27 11:47' 23

"

''

7 248 1 1

fi

10,417

. . .

n

3 .

372 7 . . . . .

731

o

4 006 .

;

5

___ .

5 iii

4 5

19 729

H .rtf it

Portsmouth- go 140 63 6

1

, 7

235

22

1 945

1 3

3

,

a

8

,

504

39 6

Pmvid.nce- . ---------- Rhode Island) -------

1 ,

4:283 6 %

M 175 M

. . . . . . . .

" :1

. say

,

M

92, M 76, no ". mr, .2.22 6

------- _ --------------------- -

Ab.rd..h ------------

uth

"'

b b"")- : : : : : : :

'

3'37P 6

4343:510 57 7072 : 498

I

3

00 7 7 (*) 353

130

6l .653

2

fig

'

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

14

. .

(75, 13 7

In

. ) Ch -- lon). .-

D.1."Zimai

-

17 111 11 22

0

,

101 140 1,980 1: 124 2 :186 1,10 5

No

i_ .

. -

: : : : :

h

-

Da of .)___

~ ----------

l0

rt

1:915 701 : 3

1 9

174

1* 10

12 99SO5 -------4

.. . . . . . . . . .

6 637

1 6

2 185

W"

.l'il)__ __ _

Nebr

.

k

.

Mil.

o h

45,522 23 474

651 588

4

2

''

,

537 10

,

253

, 7

! . . . . .

Mr

.

. ri

)

rra . .__ ---------

Louis .

u

4 54 7:4

6

1 .

0 75

go

6 11 1 13 1 2 . 13 l 103

1 :

to)

R

M e

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

S Paul . no 213 13 411 992 at

: 0

6

46 1,55 4 5 a

3 298

So

.

Springfield . .

. (b) b

.10

.

.

.

.

. 215 : 981 17:789 38 1,310 4,936

S

2,92 4

67

, a "

(S

Ilk 25

"'25 :605 46 76

fts

"D

19, U

122 : ;h s: 05

Cincinnati ---- ee

Cl... land

' ) ` *

447 907 71 "Al 2,211 21D,2

11

56 580

66

7 1.51 23 1 1

-----

Detwit. ----- Z.1hi.nf. . .::::

27:

046 219 758

9

at

31.

'961 11 9 1 1

:127

035

37:

7: 74

0

j

Ind1m,up 1 ndi11ck ------_----- 523 570 11 :3,' 7 0: 7

.

7

" N

39 1

2 475

131

1

23 314

1 :278

3 977

2 723

'3 207

5 U3

3,5

37

K... jj

Lou . . . . . . : : : : : :

W t Vi

1

2 575 2 196

,

112

1,

205

( , ,

41

Parkersburg----------- ( es rginia)--- -

"Iffivesell, ivelever . --------

------------

ass Us M,m : , "'Juse 17. " ,

-

saryss

3

1,31

Albupuerque 4,509 4,462 5

476

34

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

14 402

( ~

967

1 38

623 27 1 213 40

dust r- h Wycm

498,772 ,

1 313 384

a'

,

2

(*)

.

6

,

.. ..

39

D Sea (f all. )

Dan 1 l* ,d* ) ...

.: .

7 . 32 .24 0

25 178 10,621

17 7

V)

26 3

11'512

6,988

2,899

343

17 1*) 1 3

. . .. :::: A, kgas ' ~: : : :, : . . . . .. . ..

Little Rock----

,

14,404 13 1 20 544

10

43

6 1

29

7

2 1

1 . ~

Near Orleans-- Louisiana -- -

O Okl h

3: 6

152 28 2 2 8R75

332

7 982

4

:

85 5

,

66

6

4

klahoma City, a oma) --------- -

WI,hIt ----- Ken-) .. . . . . . . . .. ....

.

12,913 11,403

.2

33

~ ~

1101 7 99 6

---

. k

""'

7311 no M, an

294

it. m S41,330 as

:'26. 1 77

*,ske

65

102,20

Al 1,,j 1 4b1 :11 w

r`

3 633 1,

21

025 11'

. . . . . . . . . . j - ------ j,6jj.

ofill 43 :22S 7 " 18 : 11391 1 :111 4 .1 1

34 4

1

guirialo

---- So . c 1,ki, : : :::

i

7 510

j

9:8 7

52 342 3 637

4,

15 994 48 319 6 550 41 397 2,356 63 : 3 8

. : ._

Manhattan mM ------- __ sse . bell,

end 11 .

.8

,

'"

se 5 : .

im

,

",

,

frac

'

'

u .no U . "

gait, . . res -. . . . . . . . . . . . . - --------

M, ry 11 " d I D.I . 371600 15 .292 59 17.417

1 n97

3:

6 2

8 9

1 1"

go

No. ,., 7 08

S b

1

joilifil 113 :652

412 52

64 6

90

4 9705,9

7,

2.612

1 1

11 :570

.:,

3 6 1 :83

.

' '

S ::~ :~b _~ :[,* . . . . . . . ci~'1'11

111fit,

,

228 731 94,591

,

9,3 79 1,793 125 3,853

11, 1 1

6: 83

fillr Id (VIr

7 ,

24 5,530

.'q 387

7

11 7 .

063

12 . . . . . . .. . .. .

1 7 8

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

33 Wfi In,t 7

4113

.. .. .. . .

A - ------------- -- --- (Alaska ) - 21 ---- - --- - ( .. . . . . . . . . .

Idalvo) .. . . . . .

1 8

' 52 ] , 528 1 6

Helena

*

M ""a)

----

1 ~ 2

76 5

. . . . . .

17

4 1

123

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

26 6

Nano lu H, isa

Lt. Aallales b

wll')

) "'*-- -)

2"

5

202,139 163. 988

. . . .

4,261 1,414 13, 978 4,235 4,213 10,05

___. ... )

Ph-I . . . .. ....... .. Ag

n

P. land

: 0,

. - ) __ -

. . . . .. ..

262

8,114 ., .7I -. R

I

13

2

Go

6,45 g

I

13

5

261

3

28

ifah~

ItN_

-------------

a

391 365

'27 1 4

. . . . . . . . .. .

( .)

I

l o

271

5

2 ----- f~j---- V~ .

So.

San F-cilo- be 32 :347 12 : 968 . 058 3 479 980 JIB 5 1 Z .372

smatti ._ . .. . . . . . . . h n) 12,025 51239 13

) 6 :2

06 53

.

M. of let1-1 _ ___: :.. . . ... 4 . . . . ..

-

Puerto low ---- . . . . . . . . . -------- _ --------- --------- -- ------- . . . . . . . . . . .. . . . . . . . . .

---------- --------- -

11 .41,tributed of"' : ---------------------------------- -

4 --------- - ----

-------- ------------

Deposit T r.;Y.d'

Withhold Jesse of Federal employees-------- ---- ----------- - -----------

- --- - ------ - . . . . . . . . . .

Totals I., State, net shown we.

a~ California . ---------- 334,486 7

461 98

285,956

211 17

412

7

2 47-1

17,457

1

7 ~5 11 5

44

174 6:2 it,4 12 2 1

25

:1

fri

N_ Y.

k -------

:.

''-'

, 5

736

,

'61:

973

6 Ous j

S6 : 3. 21,771 946 112:1J 1.

it Ohio ,::

-

WI :

ii -

171 4 :512

19 143 347

I

~

2BO:,1701,

4

6, 4

7 :695 ' 12 14'1

3 2

11,24

P.r n

T.. . . 543 :506 5013: 6,130 8,611 3,370

7

8

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

0

4

-

(S

on P. 84 .

77
I

I

ANNUAL REPORT Is STATISTICAL TABLE S

Table I-4riterrhal revenue eollanctio-I y sources and by Internal revenue regions, distrids, States, and other chmars-continued

ll,tho .sandeefdoll.'! See table 3 . D. 82, for tax ratow and further breakdown of national totals by normal

R.Ulfirre, nds. to. . Miscellanea ., tax .

Aden! [an.

Internal rosion . , districts ,St., ad other ., .I I 1

Toilet dun

!too(Sten p, .!.1ax by 1wil . districts Indicated In Totol Luggage. Jewelry' Fun

p

raps a- Total Thur

.-'

Ra.1

-

Nra ..t 1 f

. .

penler at. rath r States shown at bottom of table) at,. at, .

I

ons nc.rt,, suchut.,, 4nltl.tl.~

athletic

contexts,

bar.,,, .

at,.

tell

.tc.

.

(42) (43) (44) (45) (46) (47) (48) (49) (50)

U.Itw Statea. law .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . an. M3 ".ps; an, V .0 . as 178, an L. 640, an 47. M 41. mr; 75 ,

.1- -1 - - ------

Atlanta . . . . . G I MS . T: 497 "3: 5"15 '273 12 : "58'5 "91:'2 12 also 525 '1-90 11 : 0.6

Bir= 4,177 626 1 114 7 4

1

1 "'

25 1

' N

C. I . . S

n:~:

b N h

N

:2,527

7 902

312

1 060

: 05,

3 73,

6

7

203

: 037

:

4

1 Big

13

'

I

12

44

11

50 1

1 1 1

~

Greens oro o, .

M

Jackson Vo" I

,

2

, ,

B`2

a, 767 67

5

2 : 32 73

,

36 7

Jnluwn~fiii Fl rld.

1 . :

131 1 711

1 *P

3

7'

4

'6

14 120 1,857 2 .624 34 3

h4sh'ill.. . . towasyn). ..... .. . .. . ... .. . 6,059

: 198

2: 401

2

51 2: 198

7 :

949

2

00

1

32 106

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

,

4, 3U 11, 1" 11 an M -

Mile 7n Ill "

August. ... . .

Boston. . . . . . : : : : : : : : : M

977

16,117

1

42

1,171

496

7,1 19

48

9 9 2

291

5,820

499

le07 2 1

65

1,531

148

939

16 0

2, 2 5 3

j)

"man

---------- -

"u"I'S' "

3.3

56

225 1 7 8

5 759 25 29

N 9 7

.c ,

Hartford! : &n n

Portsmouth.

.

"1"'

7,,1750 7'8 5

00

2,344

352

42119 1, 1

196

211 :017121 1121,1 357

30

2, 42 67

. . . . . . . . .

Providence- (Rhod . Island). . . . . . . . . . . . . . . . 2,310 3 54 1, 093 116 746 1,526 302 225 38 8

end- -loon- .... ...... ... . --.... .. . . . . .

us 1"",

ge.n. 9. 217

badrion. . 23' T noF "3 S' = S'U' lo' M

. -of~b b ow!_ . . . . . . . .

"m10fW W :

: : : : : : : as

34.65158

3 501

7 .37 50

456

31:

167021

1 3 1

3,

53529

0

01 : 571 9

87 3

03: 21 6

7

7

"

59

,758

101

3

2 0758

270

6 S

4,694

D . . 9 S

. 10

m ts)_

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

C M

Fargo Nor ----------- -

,

703 98 346 33 2411 1 : 2 42 14 77 5 4

ce

Milwack... . . . . . . . :- is n1w)

-------

741 2 44 1 11 1 1,850 23 198 47 5 698 1, OD6

a red

0 . b k

2 30 373 1: 037 122

998 40: OD4

,2

19 394

alwasso a)

. _

MUmu r,

St. . . . . . . . . . . .

L Paul. .- . . . . . . . .

1I:131 1 : IOS 1S:3.11 1 .,23fl1. 4

':0' 2~ 62

" 27

14 :3210 '47202

68

9171 1 1' : If 8,

S a 0 ( )

slow) .

S

Con pringfivId . . - . b b 3,160 386 1,545 121 1,108 10,372 134 503 797 : : : :

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

d , :,

701

'11: 1

7,638

2 137

zi,n s

rS:: d~ ~ 4 17 1 2.176 Istre1 an111. -a1 -1 1 a. -1 41an6

Cleveland . . .

10, 7

BS

1 :

314

4:4,9 5

98

70.

2 21

Detroit. 1 1 .. . . . . . . . . . . Mich son) . . . . . . . . . . . . . . . . 16,771 2,701

" " 1"

396

:

52 233

gg

no d 1,3 :77 3 1

In

"' a )- 7 11 1

973

3 IS 7 350 2: . 29 9. 447 639 1,234 huc

K. k, 1; : : :

Park. ..burg. : : : : ----- or, is) .: ------

3 1: 62

2,090

48

.71

f.,559 135

96

982

738

, 1

9 1 7

:22

7

3'

2%

274

102 420 '7

- -- ---------------------------- - low"

L M sa'son

U ' t"

1, ' 3, no " '

Alb. N

so M

1 -

2

1 8 es 514 28 595 855 111 347 235

A )

below)-- 'ha l"" W

o (I re l

35

2

10: 491

1,4113 4," 1

24

1

14

3, 66

1749

lj :~11247 39,1 5,16, 2,071

54

~ .

Do,, .l ._! : : : : : : a elow)_

t

(2'

13 17 3 1,472 7 8 5 2 664 3,725 24,842 425 431 2,194

d

.) .

0. -.-. . . . . . . . . .

' Iol 'e a

3 :on 398 1: 42,

233

1

12

8

14. IM

331

17

'

791

Little Rock- - ------ A I orl

"

New O'Ina.. . ... . .. . .

1. 0:82 51 32

7g6

2,094 17

't

245

9

3

772

4

17 .2 237

221

5S5

36

7

I N

0

he .

.

)

Oklahoma City-------- Me

... ..

3 71 112 1 11 1 1 122 1 71 1 Sit 21 1

Wichita - ------------ Krsas)_

.

. ..

2 :

940

377 :

17 10

1

1 78

7: 1

99 69

f7S

1, 009

How yeelk . . . . . . . . . . . . . . . . .. . .. . .. . 112*

Al B,b M m U'"s 'M 48' m M: M U' = 3 4'7" is" .

k S b:! .w : : :

!j

2 , I2 2

' '7 9

295

1 '

93 0

'

17 1

1"

7 26

3 ' 1

4 999

10 7'

4 36

94 1

'

417

611

76 2

2 1 1

Iwyf

., ~ l. .

.. . S

0 :' a 0 1 :292 1 1:0 .

556

2 542 : f3:437 .73

957

1 :

881

Manhattan -------

- . - - ----- ` j . .. ...

91,17 7

4O Z

17,971

7 M

24,57 8

ga

6, 6D4

- 0

1 2.024

1 '

238,593

'1' IN

10,15 8

1 '"

2 939

tR1

6,206

Y11j._~, 1 d d.D. .6.. 1 D: 1 :614 5 :271 : 812 3: 159 5 1 :1 .7 45. T, 3N.

Newark----

:;

: : : w

j ; :94 B'22 1 :69212 4 7r 7 1 : . . 1 : 11

459

4:00,7,1 7430 1,14 :6 1 1 :773 5

94

1,7,

9134

2 :7 4

SOS

Pittsburgh

S

S b I 7,604

73

1a1

13

23 :1

4053

372 2

59

23:177

09

1201:801

962

42 4

2D6

292

126

1,92 7

1,4 7

If 0

5

6 2 81 322 33 216 1,263 333

40

335

"N""" ------ . . . . . .

ya . gaT 9.

252

so, no I'll. 23, M not.41I 1 .- 13, 111 11,1153

Arlh:,~=. ---------

'':

397 29 205

3'

119

715 20 120 3

Be,, _. .

. ild h .... --

: : : :- :- : : :

1,07 5

I

7 4

107

04

'8I

43 6

37 8

9 1

9

40

1

512

33 5

502

,079

5 059

i s

12 1

49

193

2

1 H5

86

Honolulu--- 203 . .

I(Ilb or ------ 113 :84 9 4, 736 13,918 2,289 12, 857 54,'993 5,706 3,578

11 ,

Ph . . 2 2

: "

274 1 :11 52

97

900

423

4,129

6 71

4

27 0

196

494

897

5

54

1

Portland rh,,~n ) . . . .--- 1 3 34 7

' ' '

431

5

10

S' ,

7 D

'

60

M 12:359 46 3 399 91

fhato . . . . -- -

'Ikl :1 7 0 227 756 so

' 7 " '77

,

82 361

F a)

0

2,350 If 1

U

, 01

6 1 90 : N6 06 7 :0 6 ,16 . 2,117 , 383

Saint---------------- (Washington) . 5 :625 702

2 :

S 0 2. 171 1 1 1

7

1

7

32

,

93

.:........ .... - I . ... ... 2

) :1..

2 66

I .)

----- -- -

----------

----------

--------- -

----- -

Pan Rim. ........ ... ... ... . .. ............. ... ... .

OthI ........ ..

. . . . . . . . . .

2

...

-

------- - ,

525 V ) Und ---------------------------------- .

Ist,lbutual :

r - ---- ~T apnosite y roWMIGP.ts,~.m~~. .n a t rl . rrod

Withheld fix= of Federal oarf,loy .-... ... ... ... ... .

:

. . . . . . . . . .

,

... ... ... . . . . . . . . . . . -------- - ---------- ------- .. . . . . . . . . . . -- --------- -

Total* for States let shown ab ov e

Calibrate

----- - ---- -

Illinois . . --: : : :

- ------

54

7 81 8

6 12

87

7 7

22 .6 3 3

14,71

1

3 3410

3:66

211

:6"87 NiSO 95 ':S88"9

87 5

2 : 2

12

581

871

'5: '4

I

No* I,! k: ---- : :

1

112, 2 571

127

:

27 264

3 381

34:90 3

026

81

022

07

49 Sia3,

1:'

N

"7

:7769

67

1

1 1 1 :203

3 D 41 :678694

11,400

3 91 2

Ohio . . .

Pennsylvania- ------- . . .

.

20 1656 3: 254 8 .44

0

1,

931 7 131 87 465 2,208 1,10'

,

4 7 1

T as ras

.

.. . . . . . . . . . . . . . . .. . . 24,065

9

2, 23

1

2.75 1 998 7:394

4e,

W9 BI6 947 4 :26 8

78

Foolitnotas an 1. $4 .

ANNUAL REPORT 9 STATISTICAL TABLES,

Table I-4yrternal revenue collredlons by sounclu, and by internal revenue regions, distrids, States, and other areas-Confinued

[in thousands of dollars . See table 3, P. 92 . for tax rate, and further breakdown of national totals by sourcell

Ifince1j ."youl ncin t.e.-Carthou. 1

Internal rov .nue rnions,,distlicts,'Stathes, and other

r

anted by single distrits Indicated I .

(States parentheses, I '-P"~ total far the, State. shown It Uon b n

.1 table)

Tall tell.

phone sebl,,

"~:dl, . tc:.

(51)

M-Ung .

s-im, wire

and .nta I' .,,`w .c-.

62)

Ron ... I

IsIghlon ,

rvl'.

(53)

Tronsptown of

pre'sons 11

(54)

Use of set s

dbepoit

axes

(55)

Cocon of and

other *Is .

table p- .1 ,

-ad

(56)

ugar

57)

Oil, I an d

rnsp cha t

to, fuels

(58 )

U.Ned loseare, -1 . ~ . . . . . . . . . . . . . . . . . . . . . . an, an as, ass Us, an lot per I'm 14 Is.- M, 0.

Swateveow M--. ~ ----------------------------

::

l

"7 : 2 '10 '1 LOS 0 8151a

IVL

71

I I' M

4 1 11 a1 :5'70

M ---:--: :

~Alabrg.rn.).)----------- ------------- -

8`

530 811 516

,

1

6 ,267 1,085

Columbia. .. . .. . . . . .. . th C. R . ... .. .

a u r' a

404 6 1

143

462

6 09

1

5

5,

"

Gr.. . .ba,o-. pp 7

J c - --------- Florida) -----

2 .7 8170

3.789

1

3

89

127

4,631 4,12 1

33

231

3

358

67

1

745

Nnintill.. . . . . . . . . . . . . 924 41

24

1.1

30 7.

4111

1

1

1 : 832

X gas Northwest yellow

t

M""

no

14'

1 .10

".141

26

28 ......... ... . . . . ... . ....

.

337 s. . Aulu . . s

Boston

No -c*) -

1' 3

71 2~11 1%141

. . . . . .

1,77 F-753 . 253 ----- ---- 2,551 1 .542

. . . .

Bu Heston

.

86 13 66 15

J~; 9

21

H Ifad

C.-clk

- ---------- "552

92 7 8,348 4 129 --- ---- 911 Nty

Portsmouti Now H.MpAl'O' . . . . .

Provide-

,D,

. island) .. . . . . . . .

58

V)

2

2

36

533

3

22

39 -- ----- . ....

146

3

- ------------- 6-6. ..... .. : : : : : : : "'M

27. M. M

2

41.0 71 1 .37 1

21

9 no

V)

is, ran

Ab . 542

Chi,

,

.,dean .

. act

) -kot )

b below) ,

19 144

204

734

65

50

3 222

3

23.4

1' '

---------- 15

----- -- - 7 2 1

On Wiwi; . . . . . .

.

. . -

-

Iowa

.

1,

4D9

67

8

1

33

3

1 33 V)

:

1M

I

jdyU)--

M

No rt

147 10 28 18 2 31 15, 2 0 ... .. - ----- - . . . .

231

3

1 111

a

net i

)

MI

Crash ------------ sk ---

-

0 6

N

5:171

14

S%

34 908

237"6

794

21:17 2

41 -

4

13 412

7 2

212

. ... ~ 1 3: 3

3 M

aso ,

S

Missouri

. . . .

Lo I.. . . . . . . .

S! P.,Ul --- Minn

-

,

9"

51

I : SS, 4: 719 1, ----------- -

1 ....

,

1: 734

2

5

Springfield .. . . . . . . . . .

. See (b) be or

.

I aw . . . . . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . .

2,330

It 274

M

58

1,475

156

3,26 2

70

S : 9,"55

1

-14

11 7

"11

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

a

.. ..

'-an2 og4~1

1 Clanw

nd 1 ~dd))b per :: 14,003 S49 22 .275 5 -

18

, 7 5: 3 4

lu, ,h _ - M1,1 - 11 .2 2

1 ISI 4 ..

g 1,35Z 2 2 5 . a,0 1,~ ~ gn .

Ind ndi

.

7,259 '35 11 :631 332 155

1 I

3:4 8

LI.1 .111 1 230

1 ' 714 1

7

'

2,8 7

Parker.

:

508 243 94 4: 1 13 42

. . . .

Q

lood.- _ I we . . . . . . . ... . ..

A q ..Iq.

lau

Now

M

MU

-

12

25, Par

112

a . .,.

33

III

23 --4-2f

1

o,t

,n

. .. . ---

Ch So- (I)

.

. . .

- -

58 7

33

U02

7

So

2

30

443

(-1

1

Sit

12

. . . .0. . . . . . . . . . . . . 14 2

. -

1 a: ]

92 ; .

------------- 3 1 21

If

4 081 592

1 , 0 I

J

13:

681 327

1,:

614

L :

913

6

490

. . . . .1 . . . 14.746 1 :

Little Rp,i- ----------

r n.

.......

New Orisuart. . . . . . . . . . ..... -- -

I i

s

I'

3

218" 25 224 10 59

e

. ..

ne

)

Oklahom City .-..-- - L I lo h

..

361

-1

4 go

. . .

4 :

,an

.,) .

....

Wi.hit--------

: : : : : : : : ::-- -

New

1, 290

U. in

7 .

I, gral

1,362

74. M

100

a. Its

. . .. . . . .

1

37:

:

Aft, c) b :Io

: : : : ---- : : : : (I7124

54

14

744

a

86 6343 )

82,

71 :

. )

Brooklyn- a . (S..

ulb 8 bow an

1 '

92 58

4

9 :1

850

30 575

I

7 1

610

.... . .....

(*)

-----ii-iii1 : 3217: M M.nI

W.AnewRI, Mlwa --- -------------------

5 1,552 I' m

'

8

" ' -

,

a

. L in

. ..... ..

I an

at

is. a

Beill 1:w1% '1d I'C.) : : :- -

13 463

311

478

1 4 :2.3 939

137

142

I

J N f

---- - Newark -

Philadelphia ------ See e b

'

.

IS 0 3

12 14 60

9

326

1

4,1 12 3 11! ----- ~ ~

h - w

Pi 'or

b:!.

"' I

1: 728

1 D

59

501

2 :8911

0 27 5

2

V)

183

11

3

5:96

2 17!

R

ich . ..d 14,iwi.,.)

Wil .i.filln ------------

------------------------------- -

1, 3

SLM6

1.)

LIV

, 4

n. 4" 10. no1 1,1025

1

1

as,

, 1,

on

A

!a- - ------------ -

7

"78

131 121034 262

24 731 . IdIh,) . . .

Monte

9,

154 24 129 2 32 . . . . . . . . . . . .. . . . . . . .. 7-

Hnnli I

H .). .IU . . . . . 719 2

'A

520 22 -----

i

T

.0) below) 11,124

12

1 : : : : : : : :: Ul 476 7,067 211 .. . . . . . . .. . . 11: 155

Ph ..ni.-.--

r O L-: : :

2

5N

31

is

86

646

1

1

(*)

45

83

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

1 60.

. . . . . . np . .. I e land.... .......... p

- -It ---------- N ... da)- ----- - a] 10 63 528 16

. . . .

. . . .

. . . . ,

76 S -------

It Like Pity

R,hk

132 90 2 22 . . . . . . . . . . . .

' : ' 1: I S

g

F..-co ::: : : : : : : . 6 i Fi,;5 : -----

Seoul. ... . . . ---- (Washington) .

29,355

9 &(is

922342 ". 311

15,119

563

1,764

IN

117

~:~ 7 5 19

(1)

9 33,

u

am" of llw~~l opaystlens. . . . . . . . . . . . . . . . . .. . .. "a g. g

Puerto Rim. -- -.. ... ... ... - ------ -

Other ------------------------ -------------- - ----------

----------- -

--- - ------

---- - : : : : :

--------- -

------

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

2,667 .. .. .. . . . . .

2

Undistributed :

Crania

Transferred t " o

Withhold I .. I of Federal arployne . . . . . . . . . . . . . . . .. . . - --- ------------ --------- -- ----------- ---------- ------------ ----------- --------- -

Total, far State, not shown be,,

54,787 :63f) 11363 511 1 ~ 1 :85: 442

-raw

39 479 1.364 5

b~ C c 6 166 8, 21 :1 B2 ID76:4 2133

:

, 4

7 7

1 :1

11 4 : 512 New York----------- 315 79"S 21"2 078 34 . 1

705 2 231 11 42.

1 9

3 1 505 1 SOS 65

$43 Ohio .

. 13 : 1"43

1

35 P Wi~ii 17 7. 961 7:

------------- 4,493 312 4,584 035 302 "'o"-

Fwfttsz on p . 84.

79
I

ANNUAL REPORT 9 STATISTICAL TABLE S

Table 1-4riternal revenue collections by sources and by Internal revenue regions, districts, States, and other aracts-Continued

linthousironoldollirs. St. tibia 3 . P .02, for tax ni further breEkdo.c .f .fliumil tools by .... .]

Miscellaneous aiciss leve-Conti-d

l .t.-I ..an. . region, area I I . districts, States, and

fla-tics and

marihuana.

C*i"Iper -

ated amuse- Bowling

wnefirs t .. . U30 tax on

highway

Unda.111.41

excis*Mxes

(States represented by single districts initiated in including an

"I

a "it 11 y , **I at., Other 11

parentheses ; totals for oth.,Sbt., shown at bottom -rational

do.

gami

"I

Isbl.;' tc

. oc'upati ... I Wall .. vehicles

of table) tax ..

lics.

(59) (60) (61) (62) (63) (64) (65) (66)

United Stesee . -1 . . . . . . .. ... . . .. . 1,282 22. M 5'M U7 5' .39 M,M Up lot say

Swunthaval read... . . . . . . . . . . . . . .. . . . . . . . . . .. .... n ad s

2'

in .8 an itm n 4 Car

Alloot ------- 9

1

44 6

'2

&1 5

E'

61

7_8: 114

57

7 673 43 2 35 828 1 41 2

G-..b.m 11 70 2 12 2

Jakson

in A

398 43 52 1.7 2 71 6

Jac losore l

N .shvill. . . . ... ... ... . tiennesucks)... ... . 11

1405

74

12

79'

58

2 7

1214

2 568

1 : 509

5 1

2

-3,061

442

Northeast M .. . . . . . . . . . . .8

"7

34

22

M 1"

1

' M

404

s o1 IN

'

AItuas,"is ------------- 2

19

2

171 1 58 24 24 2,051 21 20

1,01,

.........

g!n . an ) .

l

1

4

1 2

00 72

194

448

4

4

. .m.

He . .

Portsmouth 2 24 8 79 234

. . . . . . . . . .

Providence .. Rmcl . lal.od). . . . . . . . . . 3 28 25 4 7 379 2

MW- ivolaw. . . .

-------- - .. ....

M

2

3, nS

149

1,0 3

30

40

1

M

3

a.,

5

Is In

Abordea- .

------ BE ..

248 1

1

162

4 3 78 10 --------- -

Bas mjj ------ 7 7

1 0

121 to

I

:51 8

'~ "

2 3 34

9

In 228

M.".iiii;

10

218 160 4 2 234 t o

0 . 12

34

90

278

166

4 6 9

1,

1

7

23

-

St.

St Wo n

9

13D

1

12 1 27 2 149

12

. 22

Spr se b)below) 7 353 113

7

59

1

.315 2 12

cantrel ... ...... 14 2,775 1,05 102 1 3 ss me an 21' 61 an

incinnati . . . . . it

Cleveland . ~SS:: ~d~ bZlow~w, : : : : : .

6

11

91

317 2 4' 4

i

63

.

4 6127"

1

1

272

. ' 076

DrImilt . . . ....

Mi

29

273

412 9 95 4: U4 14 42

d

a

lindi.m .pols- :::::::: IM 35 466 132 34 663 3 133 5 1'695

Louisville --- : : . . . . . . . . Wftycky) . . . . . . . . .

9 763 91

13 223

1:

047 3 4 P"k

. .b.rg. . .. . . . . . . . West Virgin!-) 4

6

75 47

S

ISO 738 1 -4 1

b _* ----- A ' ----------------- -

l ,,W M '

21 6 3531

)

215no

u . .. . .

. 4- s..(,) 11 1 ~ w .: : : : : : : : - 68

1

77

1 61

12 99 2~ 961 1 4,310

.

. ... .

.

. . .. . n )

W"

1

4

1 1

7

340 . . . . . . . . . .

&

. 4

So-V )

13

7

65

133

1 4

70

I1 2 2 1: 1Sn1

.1

2.

Dan,., . ~ 1~dc), ----- IN,urk . .a 32

------ , : : : : : " - 4 376 40

7

1,005 39 1

or i

t

-

New Olem----------- Louisiana) . . . . .

.9 1 .

004

12

I 94

13

26

0

278

31

929

71

2

Do

27

D

C

fu

Oklahoma try., . U.N ..

Wichita--- ----- Kansas) . 176

305

99 2

3

2 1:306 4 3

"" V -----------------------

217 M M V lie s, gas

S' IS

noa

All . rok 7 .3 7,1

149 2 1

,.

33 168 210 1 66 1 871 3

1 5

. . . .....

Manhattan se b

83 75

. 90 a 71 2,771 7 21 7 . ... .

us in

'

17 49 an 14

"' U 6.1th.c. ----------------------------- -

"

14 .1 and

"

2:679

1 31

13 69 1: 627 O43

tl :. ..

..t

Newark

1

2

633 2 33470

1

2

256

IS

3

0 6

:2

4 795So

1,1 -11 1 25 :2"11

o

d.Ir' :: J14 b:lb.*~ -------- -

P"into'

'h ---- b

. . . . . . . . .

13 as 9 157 7

1

65 2 505 it

7`

3

-2

,,,,m

.nd ----- '

r

rgln --------- 21 195 If;

'

56

1:

1M

4 5: 372

VAI.Irgt.n It 4 25 29 I 36

_,82

Wevuern neallee, . ...... .... .. .

A .

us $,as

122

I " a

4

1, ."

2'

27, M

93

gas Is 3

Id *

he)

-------

2

33 3'

1

23

2

39

58 1

525 1

an' !

"also. . . . ...... .. . .. .

.

henolulu. . .

M

. G)

I

' 23

98

M 3' ') 39

2 1

4

61,

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

----

go

: :: : Lt . Argon: : : :: be

Phc .ni. . . . .

52 227

I'363s

207

37

64 71

1

1 2

4

,

710

1 779 12

2

33

.'s oo~ Rav ' . _

-

Portland time ::::::::::::::

.d

----

.. . ....

6

2 6,

2"

8

5 925

,

2

10

231

Ut

.

Sell talks City ---------

E se b J_ __ ___

S F d be : : :: : ::::

'-w

33.

263

214

30

116

3 9

7

ED

36

600

929 39 an - 1 a ace . . .....

Surattir . n rr 11

7

14 M

1

02

3

99 1 605 39

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

on

. . . . . . .

.. . -------- In W Is

Puerto Rim . . . . . . . . . . . . . . . . . . . . . . . . . . : : : : : : : : :

other

.

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

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

123

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

(*) .

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

13

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

Undistributed :

92 558

"'*"U Transferred to ry """'

Go 1'

------------

------ . . . . . .

liffibliald taxes of Federal employees.

-------- ------- ... .. . .. . .. .... . . . . . . ---------

Total$ for Stairs act shown abo v e

81

1

"

324

10

175 10,609

772

54

12

78

74

Illinois.-.-----

New York. . . ..... ...

66

257

72 1

408

361

505

I

s

27

22,

179 '6:954 28 250

Ohl.. . . . . .. ..... ...

R

59 8

920

353

372

2

9

27

264

32 '7: '209 21' 18 71 2: '7

T . ..

81 241 230 13 121 7,056 9 7.Z26

. .

80

Footnote, on P. 84,

ANNUAL REPORT Es STATISTICAL TABLES

Table 2-Internal revenue collections by sources and by quarters

Iloth.-d-fdoll . .)

Quarter endedSource of revenue

Sept . 30, 1963 Dec. 31, 1963 Aw. 31, Use Joe. 30, 1964

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

Grand total . . . . -------- ------------- --------- -----------------_--- 25.169,260 22,447.381 31, Z24,769 33,418,948

Unrati.n in... to. I ------------------------------------------------ .. . __ ------- M 29 3

"

4 679 108 7 687 910 7 370 562

lod dust jocont. ad employment taxes, totil.. . . . . . . . . . . . . . . . . . ... . .. . ... .. . ... .. . . . . . . 16 510 : :303 13 : 829 :724 19: 656 :853 21 :595:97 8

Inoome tax not ithhold and self-em p

w Iny a t ' % _ 2 122 21"

770 43

4 " 2 "

532 94 8

1

g

E .in. Us withhatil ,it old-alre, and dimbllity'ol;~ W~ji -7 13 56 8 :6 : q 12, '10 : 09 2 14:362 :97 1 12:899 27 : 0

.Hoord b,.. .nt --- _ . . . . . . . . . . . . . . . . . .. . .. . _. .. . . . . . . . . . .

Unemployment in,u

.n.. .. . . .. ... .. .. . . . . . . . . . . . . . . . . . . . . . . . . .. ----------- . . . . .

145 .536

5,299

1

44 . 4

3, 979

152,758

928,872

151,152

12,708

We

I. Us . --- _ '

73 5

536

439 9DI "! 16'

Gift tax --------- --------------------- . . . . . . . . . . . . : : : :: : : 1:113 ' " )

7 : . .

26 :357 264:0 1

ucin t.... . total . . . . . . . . . . _ -------_--------_------_-- --------- 3. 246 3, 011 M 3,319,gu 3,597,69 6

Alcohol taxes, total . . ----_-------_------------- ------------ . .. . . . 873,418 999,481 767,256 947,344

DiStill

~ spir it` - -------------------- -- ------ - ------

17,314

" . . " 3' ' '

Wi 675,665

w rd ia

:* - --------- -- ------

:

21 122 28 : 834 7

6

3 1 : 3 1 2 1

B. r - - - - -------- 54: ~92 205,834 187,9S4 21327

7

: 56

Tobacco taxes, total 0_ --------------------------------- _ ------------_--- ----- 539,779 536,878 433,726 542,162

ciza'aft C ... . . . . . . . --------- . . .. . . . . . . . . . . I ------- --1 . . . ...... ... .. . . . . . 5Z2,543 517 503 1 1 1 112 520 967

1 56 " 0

:

4

1 4ff

1 ~ 0

: 0' q

le.

:677 4,9 i 5 .t 4,122 9

Stamp be . . . a. documents, other instrument., and playing .,it., total

------------------

39,561 42,379 46,674 42,9 "

issues and transfars of bonds of indebtedness or capital stock. foreign insurance

policies, and deeds of convoyance :

Sales by pratinnt... ... . . . . .. 12 33

0

12 3

Sales by district direct- - ------ 25 :23 9 27 :77'0 it29: '537 H1 IS:57'0

Playing card ., ail, .r bullion trinst-_ . . . . . . . . . . . . -------- __... ... .. . . . . . . 1,992 2,175 2.491 2,276

Manufacturers' exciss taxes, total .. . . . . . . . . . . . . . . . . . . .. . .. ... ... . .. . . . . . . . . -1 . . . 1,570,149 1,372,049 1,487,992

Beach ... . . . . . .. . .. . ... .. . .. . . _ -----

6 1 0

114 11

Lubricatio oil at --- I ----------------- ' ' -

'

2 :

IS Its : 0

,i 1 1 11 : 7 11 : 12

part of rubber), inner tubes, and tread rubbe- ----- -

Ti"' ( .h

;r in

Motor vehqic~yx, chassis, bodies, parts, and accessories . . . . ... _..... . . . .. . .

I 1 876

6122 ~ 502

100 '19 1 2

:9233 J71:1515 619,65 101 . 64 6

Radio and t.le,i.i at. pho .ph. cornp.mimt,, so: . . . .. .. . . . . . . . _ . . . . . .

on' ' n t

4,

100 53

",

413 41, 21 1

Refirigerators, fre , -wri d i -na: tc. ; electric. gas, and all appliances.. . . . . . .

"

r

Other

. --------- -----------------------------------------------------------

309,,534

6 350

31 : 9 ,8

62,603

5

30 42

71 .049

38,

55~ 72 3 0

Retailers' anise tax ... total . . . ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . .. .... ... . . . . . . . . . . 110,760 99 .197 165,931 134

------------------- . . . . . . . . . . . - 19 W

12` 1 1

26 942

1' '11

try, : Das

44 37 : 00 71 425 36 1: 7

Furs. . . . . . .

Toilet orruratin.. . . . . ..... .. . .. . . . . . . . . . . . . . . . . . . . . _ . . . . .......... ... .. . . . a 3

6

42 :1380

1 :121

39 10

13 1452

54 : 12 40': 30. .5

Min.flameaus excise Uses, tai--------- -------- _ -----------------_------ _!j!j 4 j 414,070 396,984 320,30 0

Admi.1to . :

cont"u, stc."_ --. . .. . . . . . --- -

':f"" t' 't!' R ----------- -. ald.r." ".r.-ret. attic

4 1

. :312

14I0 :17057 1

'DIM

'1 6 9:49161

g .

Club due. and initiation W, 21,84M 15,647 15,910 21,710

Toll telephone service, telegraph, cable, radio, etc.; wire mileage service, ire and

equipment ,,,c ------------------------------------------- 11 031 112,173 111 211

" M

G

t h

o

eneral elep one service . . ----------- -

Trans .irtation of persons It . . . . . . . . . . . .

. . . . . . .

116:7

74

2 15 7

'

1

52

29 :9,89

1 1' ~ ,

I21,150 S

105:74

2 95 8 Us . i ... .....

.

C =' b''"ab_ is _~ is j ;;;iiid

1 : 764

1, En

1

1,60 3 12: Z26

.c*m.I ,.,.t i r . . . . . . . ----------------- . . . . . .

u --------------J--------------- ---

4

2 1

'

3

1

-

26,981

4

24 41 1 11 122

Dies. : : : :

' "I'Ve' "" fuel -------------

1 1

31: 2 33,077

:76 7

32

31: 115

Narcotics, and

a

biding

1, n 1,"1 * d Zihbaaa~ttd ninin- a '" Is ------------------------- . dal!ck..' -

I I as m

. n

36 1

15 12

'

20

9

I'm

14 1

$40

57 1

j,% . .,.a 689

11 pact table. . wft~ ------------------_-- 3 :34 D 141 32 1:39 7

O-P"U's" . ~ __ ------------------------------------ ------------ ------- 1 93

7 :

153

W." . --- ----------- ------------ . . . . . . . . . . . . . . . . . . . ......... ... 1

3'

tax on 6 1,546 1,188 1 . . .

ighmy motor vehicles- . ---------------- ------------- . ... .. .

: 8

55 17 12,659 15,3441 16:380

oth.. .. . . . . . . . . . .. ........ .

------- ------------------------ - ------------- 115

65 5

9

Unclassified exclas taxes :

U .-=Mil "m- -------------- --- ----- ----------------- - ---------- -

670 13 157 -1111 3

Und tad deposiary receipts 7 -------------------------------------------- -

1, 6n

36,474

_94 :

148,65 6

Footnote, an p. 64 .

81
ANNUAL REPORT go STATISTICAL TABLES

Table 3 .--4nt*mal revenue collections by sources, final years 1964 and 1963

(In thousand.Of cl

19M Fiscal year

Grand total, .11 se... . . . . . . . . . . . . . . . . . _ . . . . . . .. . . . . .. __ __-_-----------------_-- ---------

corporation income tans . total 21_ . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . .. . _ . .. ... ----_----------------- -

Regular------ -------------------------------------- : --------- . ... .. . ... ......... .... .. ... ... . .. .spot tesporizathm business into.. t . . . . .. . --------------- __ ------------

Individual income and employment ends . tDiaL ------- ------------------ _ --------------------------------

ina,On: tax not withhold and self-employment tax a I I xo-_--------- ---------------------_--- _-----------

rearn ta withhold and old-ah. and disability insurance, Intel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rate set with returns . ..... . ........ ------- ----------- Undistributed depository receipts I . .... .... .. . .. . . . . ---- _ ----- _ _

Railroad retirement, total . . .--------------_---------- _ ------------ _ . . . . . . . . . . . . . . . . . . . . -------- _iri6iW1i' Rai mad employment comp of .-I-tiOn tax ; runiii-Yers'bix 79 percent, emPlows'tax 74 percent ; both mi3aiii

Plinio Rocal,rid 0 .. ......... . . ------_--_---------- ---------------

Rof Undistributed depositary receipts 7

read employees' representative tax. 4 on taxable portion . ------------------------------------ Of wages ----_-----------------------

ljo,itgrl(%m .nt I..... .. ..Iloyan of 4 or am persons used 3.1. percent odn taxable Penn g.wages, effective January 1 .

Or .,and. and 1962,3.35 and 3 .5 cement riameativ.1y) ;cm itallowedupto rcentoftoxforontribu Pro t.st.briummoldryonsuffirid- r years 196 . . . . . . . . . . . . . . . . . . . . . . ----------- . . . . . . . . . . . . . . . _---------------_--

Estate tngduatrud hatinfrom 3 Perception firMS5,0100 of not estate in excessof $60,000 exemption to 77 Percent On portion over S10,000, ; credit .11... it lorStt. death Ian ---------------------------------------- __ ----------_------------ ---

Gift t. ;jisdiet.il at., Nerincl percent or first S5,0D0 Of net gifts in excess of $30,000 exemption to 57% percent an part on over

$10, 0100 ; $3,000 impual pain for each don.. . . . ...... . ....

Excise taxes . tota . . . --------------_--------------- _ ----------------

Alcohol taxes, total. . ._ ------- ------------ ---_-------_------------ ------ --------------

Distilled spirits taxes, tatil .. . . ._ ---- ----------------- . ....... ... ... _----_----------- ---

sourn, 11 domestic)

`o"rttj DO . .. 10 50 .(p`Il`tgdtP' "i",Din"In to, 11. ':n*ire goollon when below proadi .----

Ratification . 30 cents per proof Gallop.. . . . . ... . ----------- ___.. .. . .. . . .. ................ ----------

0-p4:tnib.-,I cn.%...Int-ro, .1 pirlb, 125, $9 . $100 par y .. .. . . ... .. . .. . .. . . --------------------------_-

Rictifi- lars. thanProp, 20, 7prood polles.J.H0 P.; year. . ............... ... . . . ___ ------

tho.20,0DI

"an . or or.. P

. - ----_---------_----------

it dealers in liquor or medicinal spirits, $54 PIT year . . . ...... ... . . . .. . . ::::: _-----------------------

or. . ............ .. .

WZI ufrft' ' ~I os"ort P5! rpy..',',. I . . ...... ... ... ... ... ... ... ..

S.Inine, penalties . etc . . . . . . . . .. ------------------- ---. ... .. . .. . . . . . . Still, or condensate manufactured, $22 each------ ____. ... ... . . .. . . . . . . . . ... ..

Winn, cordials, ste., taxes . total------------- --------- . ... .. . .. . .. ... .. . .. . . . . ---------- --------------_----

Imported (colliented by Customs, rates, nine is domestic). . . . _ . . . . . . . . . . . Domestic (Still wines !7 cents . 67 cents, $2.25 per wine gallon ; am rkling $_3_A_0-;_ir_tifi_ dilly -a- r-b-o'n-st -d,-w------

$2.40 ; lousurs . corilials, S1 .92 .)_ . . . ------------ ........ ... ...... .. . .. . .. . . . . ... ....

. ------

0 It I to

"'Petili clooleral'n :winme or in wines and beer, ISO Wholesale desters in wines or in regressed

Bear tam, toul ..._ _ -------------_---------_ -_--------- ------ ------------------------------------

Imported collected Druessafte!$ m 9 by Custo a. rates I .. I domestic) . . . . . . . . . . . . . . . . . .

_=.,re;.I.b.! real of 31 gallons ------ ___ . . . . . . . . . . . . . . . . . . . . .

I500 ------------------------------ .- ban

Pat.

it dealers in beatin _n ------------ . $24 par y... (includes laniiij,"fljillwi i wines or bn I, $220 par month)--. . . -------

Wh.1-1. deal.. in be .,, $123 par year .. . . -----_------_------------- --------------------_--------

Tobacco tax", total- . --_----_-------_------ ---------------- ------_--- ---------- - -------

Cliforroth", total . . . . ...... ... ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --------- ----------------- __ ---------

C expe A 34

1

thousand

loop hirg $11.1up.,

Prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. ... ... . _--_-_------------- ------

total.. ..... ... ... .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I .. ... ..... .. .. . . . . .. ------ ------ ------

Large cligars, classified by Intended retail prices, fault ...... ... ... . ......... -------- ------------

Clan A (Retallini stp fee a! at no .... .2 )~)!c 2 Glen BC Dooris 2l, .1 4 Lt. im i3 pealth P .procard

C age N house it C O :rr I

.n

! D Chis

'.pI '."ntb' thou it De .

cl r cents, rectover i5explasse ).$10qP%thedsped . . .-----_--------- Cl F Over, 15 an. at .1 .1 20 onto each), $ , thousand . . . ---_----------- Cl-~GlGww2Ocmts'uch).$20p .rthouand . ..-........ . ..... .... ......... -------

Footnotes on p. 84 .

82

(1 )

112,260,257

24, 3DO, 96 3

24.298,959 1,904

71,592.85 9

311 069 ISS3: 83o: On

5~253 082

423:01 4

593,864

580 295

13:546

22

850, SH

2,110, M

30

13, 9 5 50: 231322

3,577,499

2,575,32D

2,0'29:'5740

25,449

9 7

23

2 7

13,377

750

1,2021

6

110.24 2

9, an

98,740

2,21110

193

891, TA

320

9821: 093

1 .

1 9

3,437

SI R

2,052,54 5

1 .976,67 5

1 976 67S

56 .3D9

55,658

72

436

36 .224

921

27:

3 9'13

3,0114

1963z

!2)

..

105,925 .39 5

22,336,134

22,334,9205

1, 29

67, 992,06 7

15 204 971 51 :266 :998

50 289 180

'977 :8U

571,644

577 957

-.6 :334 2 1

9441, 464

1,971,614

215 943

13, 409:737

3,441,656

2,507,068

"040116 '375

25,51 0

77

23

13,236

Z55 1, M4

103,733

7,951

93.920

1,718

144

930,955

8201 1 7611

53

21

4.48

980

2,079,237

2,010.524

2 010,524

50,232

50, ON

55

to 773

25:126 "6

3,692

2~ 852

ANNUAL REPORT as STATISTICAL TABLE S

Table 3-intoormal revenue collections by sources, fiscal . . . . 11964-11963--Conflnuard

[in thousands of dollars ]

Source of revenue

Excess taxes, tatal--lonfinued Tobacco taxes, total-Zonfinued

Cigars, otal--Confinue d

Small 112 .11, 75 cents Pat thousand ------------- I . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .

Prepayments

.

-- ------------------- ------------

. . . . ... . -1.. ... ..... .. . . . . . . . . . . ...... . . . . . . . . . . . . .

Tobacco material,, tobacco products . and cigarette Papers and tubes (Customs) Is.. . . . . . . . . . . . . . . ... .. . . . __ . . . . . . . .

Manufactured foliated. 10 cant, Par Pound , .. . . ... . .. . 11 .... _. .. . . . . . ---- --- . . . . . . . . . . . .. .... . . . . . . . . . . . . . . .

C

and tubes, papers 11 ent par 50 ; 1 .1, 1 tent at 50- . . . . . .. . . . . . . . . . . . . . . . . . . .. __ . . . . . . . . . . . . . .

111 . 5731, Internal go, an a Cd.p I Stomp taxes on documents . other instruments . and playing .,do, ou tot.]o . 1954- . . . ------- . . . . . . . . . . . . . . .------- --_ - - _- . .... .. -------

1 . . . .. . oil traniffers, of bond. Of ind .bt.dn ... Or of pilot stock. foreign insurance policies . and deeds of convoyrunce: as Sal" by postmasters ----------- . . . . . . ------_--------- -- --------------------------.:-. . . . . . . . So I as 4"d ~131 tic1. d 1rglbig , ~ _. : : :: ---

Sl

P

lNirte" ------------------------------------------------------ ----------- - -

1

Ilion transfers, 50 percent of profit : ii;iifst, -

Manufacturers, xci.. Va.." let.] -------------------- ... .. . . . . . -----------------_---- . . .. . .. . .. _

Gasoline, 4 cents per Callon . . ----- . . . . . . . . ------------------------ --------------- .. ... ... . Tins joil, otc Lutulatin .,6unts pergeolkin ; cutting oil, 3 cents per gallon . . . ~ . . . . . . . . . . . . . . .. . . . .. . . . . - :::: : T(who ly or in part of rubber). inner tubes, and tread rubber:

into . highing type. 10 cents per Pound, other, 5 cents Per Pound, except laminated time (other the . typo used on callper --: : : : : ------------

Into"* by ""I":' t

;lp.r primd~iml

------ I ----------_---_--------- . . . . . . . . . . . . . . . .. . .. ... ..

Trom r I 'l a ------------------------------------------------------ it . be,, 5 . " 1 0

for vehicles, seems, tandin~p 'In' 'or f-andic .re, infor ----- ~. ;i ------------------------------------------------------------ Passenger automobiles, chassis, bodi, tc~iirclgnxint it !: 1*0 p' .. _ :

: ----- 11. .. . . . . . . . . . . . . . . . . . . . . Trucks and bierso. chnsix, bodies, at ----------------------------- Portion ncesiscrion for automobiles, trucks, tesu ., a Percent . .. . . ------------- . . . . . . . _ _

Radio and television sets, phodn9gralp 3 . componen , etc.. 10 parcent.. . . . . . ---------- --- ER~fcrjlmrtnors. freezers, air-cen iturrous, at ., 5 Percent; salf-contained air-conditioning un ;6,, lyiiiiiih . . . .. . .. . .. . .. . . . . P its. gas, and oil agigliances, 5 percent::

IstOls and revolvers, I percent ---------------

Musical lrixtrurptint,~'Id "on"Y"' ""od" PI rc' ------ . . . . . . . .. ... ... . .

Sfjorting goods (other than fishing rods, creals, etc .), 10 percent ... . ...... ... . .. ... .. . . . . . . . . . . . . . . . . . . . . . . . ...... . .

lphl.ngrc.d~, . or.

B as," ortocar -------------------------------------------------------------------------------- Er.,;~,nhl ;L... Cameras, farm, film, etc., 10 Pere ----------------- Electric lIjht bc1be and tubes. 10 percent. . . . . . . . . . ---------- . .... . . . . . . ----- Firearms other than pistols and revolvers), shells, and cartridges. I I percent. . . ----__-------- : : : : :: ::. . .. ... ..

, h

1

M (but .11hlhl ft .".11 ..1 cP 2 r he .11t11, .Pan,,.I0ndncent an f;11 S , tots 10 cents per lights I p nr-~ ; 10 percent flan than III. ......no to . .lead 10 Percent Of ailing Price ; fancy motion or colored stems, Six par thousand .

Retailer,' xxxchm to.., total --- --------------_------ --------------------------------------------------------------- ------------------ -------------------------------------- . . . . . . . .. . .

Lujilage, off ., 10 percent----------- Jvvmlr~ etc , 10 percent. . . . . .. . .. ... ...

Furs ptu6ttt ----------- ----------------------------------------- ------ . . . . . ..... . . . . . --------- Toilet preparations . 10 percent . . . . . .. . .. . .. ........ ----------------- . . . . .. . . . .

. . . . . . . . . . .. . . . __ . . . . . . . . . . . . .

Miscellaneous explim Uses, total. ----------- _ ---------------------------------- . . . . . . . . ---------------- __ -------

Admissint. to.., total ---------------------------- . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Theaters, concerts, sth~ can .,tj,~ c.ntaat,,c ,b 10 ~in :,t , cragr fractlop t)htob Admi.i.se, I .of c;fi the .,mount Paid In a,,. of 311, ~. ...... . . . . . . . Ticket brokers' nine, 10 percentot impoun in excere o or Lee.huft .Of be.'fit . Orb ..1., 10 percent of the amount for which - ne . ---------------- PeAd 'it b . On, ne y proprietors In excespe of extatill ad price, . . . . . . .. . . . . .. ... . . R I ., I.. car rate at,., 10 percent Of total paid forldiriessions50 percent of such excess .

, evil ., at . .... . .. .. . . . . . . . . . . . . . . . . . . . . . .. ..

Itulb'd and In1gft*,",a,7 are of

I

npln%lib, $.ID.per year) --- Tol ph . . as

Ic g`1a`p0hP.b1 . A.elt."I'te'.

~ 110 ca

GWill .. I Iriph 1, 11"lle, 10 percent ; wire and equipment service, 8 perearL. . . ..- : -------_----------------

ser, ., 10 pacimt_-------------- - ------------------------- . . . . . .. . ..... . .

Triin0 ofP,"-' Ynx! '1'0"pn: ; _iri -aii Uiii~Wtisitic~~_vWft'h' ;4iii iiiii 'tY V~; Warit" Propereli, 3 percent of immunt paid, except =I which is 4 cattle per ton ; tanned, electives Aug . 1, 1958. . .

--- Coconut and alipol . ...nt. . .. . .... ...... ... .. . . . . . . . . . ------------------------- . . .. . . of "" a Is processed, 2 cents pet pound ; repealed, effective Aug . 31, 1963 .. ._ . . . . . . . . . . . . ------ Sugar, apgroximately it can

t it Did, Per pous a In 11,111 .for fuel, . 4 cents honest and Ih ,

1. ft. .., .. .. . total ru . __ ------------------------------------- .. .. .. . . . .. . . . . . . . . . .... ------

.11 - -- ------- I .......... ---- --- ---- -------------------- . . .. . . . . . . . . . . . . . -- . . . .

Marihuana --------- ----------------------------------------------------- .. .. . . . . . . . . . . . . . . . .. . .. ----

Col-Peratind amusement and ginninit dniles. $10 and $250 per device, per year_ -------- __.... . . . W8e .I nj alloys, mcl top les, etc.. 120 par stay In table Par y . . . . . . . . . . . . . . . . . . . . . . . . . .. ... ... .... . . . . . . . . . . . . . . . . . .

sitting to 0 . ..

ticlumatiOnal tax, 'u 10 $50 par y.. . .. . .. . .. U Wage, U . --- ------- lit Percent of amount mention! ---- : : : : :

nhilles weighing over 26,000 pounds, $3.00 per I,ODO pounds Per year (installment pilvileges

A .[totaled ..it prxicW~;---------------------------------------------------------------- * -----------------------

-

art .., led butter,filled them, unadulterated buffer and clespro."arso. (domestic end Imported) N.

Firearms transfer and caipirtkuriltn te rp--_----------------------- .. ..... . . . . . . . . . . . . . . . . . .............. . . . .

Unclareffial . .do . tax.:

Up

Z

led -

- -------------------

lb . . .. ............. .. .

it p . . .. . .. . .. ....

1964 Fisselyear

649

1

1 .373

C)

74 5

171.61 4

I'll: '5115

a' 89413

6,020,54 3

2,616,370

76, 31

6

$66,478

7222

:21166

12' 1,7 : 595 761

627: 75

7 71

251 :11" 198

21,748

20.633

7 1I :'11'7 21' : 11

4

. .

'9' ;2'9'9

4,359

475,01 3

04

IBS :4' 37

3

1 76,857 " 0 "

1,546,631

98,07 9

45,989

111810

15 8

41,026

701 120

36 330

19 278

530: 5811

106,061'

2727

7,42314

4

1121: 079"

1 .292

1,187

95

22 :6763

5 06

197 14

100'1939

50

13,823

92.558

1963

(1)

137

1 434 16:38 1

6624

149,069

45 .687 94 6954 N2 4

5.610,309

1,11174 :,116

a

355,767

23IS :615'

1,3559 510

03 :144

224 1 :5"

84 220

181 :

6 1 71 4"

27 421

20,175

18,099

44:1145

25,205

3161:2385

0,674

4,102

443,553

171: loll 9 2

81

29 287

1 53:35 1

1,619,656

92,593

41,698 5

42522

127

39,79 4

A9: 2"'46

2 :379872

51 5

233, 18 492

5 1 6,5142

99, 9D3

11 31 :012

153

1, of

6I8

2 253

1 897

5. 531 167

99.4871

54

710

621 :54

1

83

Fwtnota an p. 84 .
I

ANNUAL REPORT as STATISTICAL TABLE S

Table 4-Interstal mentrat willections by principal sources, fiscal years 1940 through 1964

Its thousands of dollars]

I-im. and girifits Us .

nacei year ende I d

... 30

Total Intno I .an ..

',,.,11 .n Individual

Emplolms I

a., I

Fits a end

II1

Alcohol Tobacco

to. . -

ManMVufor% :xc soAll ?.he,

ta,,, as

collertlam. Total

, ~

In

...

a

pnifit.

income

Us.

as

to'.

(2) (3) (4) (5) (6) (7) (8) (9) (10)

1964 112 260,257 78 891 218 24 300 863 54 590 354 17 ODZ 504 2 416 303

'

3 577 499 2 052 545 6 020 543 2, M 645

1 --- -

. . ................. " . . .1. 105:925,395 75:323:714 22:336:134 52:987:591 15 :004,496 2:187 457

3

:441 :656 2:079:237 5 :610:309

4

2

278: 536

: 7 962 :::.. ... .. . .. . . . . . 99. suo, lin 71 945 30 5

'

21 295 711

'

50 649 $94 12 708 171 2 035:187

:

341,282

1

2,025,7

1 17

120.3 0

54 : 896 902

21 2U,8 1

963 582

1

961 . . .. . . . . . . . . . . 94 401 086

6

7 917 :94 1 2i 764 , :940 46 :153 :001 12 :502 :451 1 916,392

34

3 211 2 1

3 : 93 714 504

.

4 735 129

:

W

394

1 :

960

. .....

. .. . .. . . . . . . . 91 :774:903 67 :125,126

22, 1

79,414

at

945,71

1

458,589 1,626, 8 , ,

,

------- . . . . . . . : _ 79 797,973 58,826 254 18 091 509 40 734, 7" 8 853 744 1 352 992 3 002 096 1 US 816 3 958 789 1 997 292

959 - ------- . . . . . . . .

:

. 978,476 59 101 :874 20:533:316

3e.

568,559

a

:644:386 1:410:925 2 :946:461 1:734:021 3:974:135 2:166:67 5

957-- ------ ------ 110,171 971 60 :560,425 21,530,653 39 029 772 7 580 522 1 377 999 2,973 195

:

6

74 050

11 :

3 751 92

3: OI35

2 243 956

:019:38 0 :

56 .. . . . . 15,112:649 56,U6,164 21,298,522 35 :337:642 7 :295: 794 1:171 :237

2 9

, 2 0 574

742 94D

1,613 497

1 571 213

2 g

016 2 018 866 I .SS 66,288 692 49,914,826 19,264, 20 31 650,106

6

6

219

, 65 936,267 2, , , , 1 . ,

9 --------_ ----- 69,919 01 54 360 014 21 546 322 32 813 691 5 IN 623 935 121 2 793 012 1 590 2 21 2 699 133 2 464 85 9 -

53 . . . . . . . . . . . . . . . . .

"

69,686:535 54 :130:732 21:594:515 32,S36, 217

4

:719:403

'

091 :294 2 :780:925

1 :654i

911

2

:662:798

4 3

2 :647 :49 2

2 5 93 3

952 _, . . . . . . , . . . . . 65 009 51111

'

50 741 017 21 466 91

0

29 274 107 4 464 264 833 14 7

:

2 S49 120

: :

565

162

: 396

2

:3 3 94

i Si 6 7 7

0 7

2 :392 :7 1 9

: : : : :

251 : . . . . . . i6, U5:69 6 37 :394:879 14:397:569

2

2 :1'7 : -

3:627:179 7. 71l ) 2 546 Idu r

2 219 202

1 38D,

1 328 464

1 B3e"

053

2 14 2 9

51

9

.

1 50 .

.

.

. .

.

. . . . . . . . . . .

,

38 957,132 28,007.659 10,854,351

1

71B3,308

7,

2,644.

7

06,ZZ7 , , , ,

,

1 ,

40 " 11

1 5

21 .1 41t It 5. 111 Is 011

Bn

2,476 113 796 538 2 210 6D

7

1 3 1,875 2 1,771.5M 2 290 96 9

94

41: .64:

542 31 :172:191 10:174:410 20:997 :7 81

2 3

. 81:342 999 :345 2:25~ 327

3

1

: 00,

290

" 234

e

2:206 :923

4 4

11 19 6 1 1 l 29 019 756 9 676 459

1

9,343 297 2 024 365

W

779 29 1

:

2 474 762

: :

1 237 76 9

: :

9

1 2

42 60

22

67

2

2 :1 7 1 8

42

'946

0: 6 72 : 31

: 258:138 12 :553:602

1

8, 704 : U6 7 . B28 676 932

2

526 165 1 16 5

912 1451 5

,

5 I

l

792

,

2 2 2 108

1945 . . . . . . . .. ...... ... .. 43. SM . 398 35,061 .526 16 .027,213 19,034 .313 779,177 643,055 2,3D9,866 . . ,

1 11 1 21 711 33 027 $02 11 766 796 18 261 005 1 739 372 511 210 1 618 775 W 493 "3 162 1 733 655 22: 3

7 1 : 386 16: 298: RU 9 :668:956 6:629:932 1 :498:705 447:496 1 :423:646 923 :857 W4:746 1 : 274: 0411

692 94 2 3 17 Il 9 1 l1 1 7. 80 3

3

262 M 1 ' 185 362 432 540

:

1

'

048 517

:

780 992

177

7771 902

173

821

30: SM 7 7, : : a s 3: ,7,: 124 2 :,,3: 46, :

417:655 925:956 407 058 $204 2056

53

698 51 ,

608 447 098 337 392

.. . . . .. . .. ... ..... 5,340 .452 2,129,609 1,147 .592 982,01 7

1

1 933,521 360,071 1

62

, , , ,

1

Sao foll below.

Footnotes for tables 1-4

No~-Calersdw year figurca, by regions, districts,

States, end other wciu6 for selected types of tax", may be

obtained from die Public lisfor-aton Division, Internal

Rc,miuc Service, Washington, D .C., 20224. Fluor stocks

texca we reported separately only during the periods in

which the collections am of significant amounts Rel

tively small surnamants collected in subsequent pc~ods wemerged with the Amounts shown for the related class of

Mli,cscs then 115oo.

Revised .

lie rcceipts in the various States do not indicate the

Federal tax burden of each, since in many imt-c-, taxes

Am collected in one State from residents of mother State .

Fir, example, withholding toacce reported by employern,

'located new State lines may include substantial amounts

withheld fmm Warin of employm who reside in neighboring States o . tax on unrelated business income of exempt ;lncludm

I

rinizations

Collections of individual income tax at withheld in.

clude old-age and disability imorance taxial on self-crisployasent income . Similarly, the collections of income tax

withheld are reported in combined amount with old-age

and disability inumintrice taxes on sislarics And wages.

Estimated separate national totals for individual income

tax end for old-age and discibility insurance =.

shown in the text table on P we

.

7 and we wed in obtaining

national totals for individual income taxes and craployment

taxes in table 4. Amounts of old-age end disability inswrince tax collections, chissified by States, we compiled

by the Social Security Administration car a by-product of

its wage and income record-keeping operations And we

published periodically in the Social Security Bulletin .

4 EffictiVc for trocable yeim, beginning after 1 q6O, selfemployment tax end taxes imposed by the Feacral Insurance Contributions Act we applicable with respect to

84

Guam and American Samoa . Amounts of such taxes

collected in Guam And American Samoa we meribined

with similar two mported for Office of Interniational

Operationt-Other .

i, .Bc&ning with fiscal year ~37, the United States total

sid'usted to mclude withh individual income taxes

tr=Vgcd to the Government of Gusum in accordance with

the provisions of Public Law 63o, approved August I,

1 95G (64 Star- 392) . This adjustmerit amounted to

sj,flio,ilii for 1964.

GInciscrics railroad mploymerst corripensuation tax and

tax on railroad employee repmaentatives.

7 Tax payments; made to banks, unclcc~ the depositary

receipts system, acre included in internal re,venue collections

for the period in which the depositary receipts we issued .

Howc~er, such payments sure not classified by internal

reverme districts (nor by tax subclasses to which excisce

tax Pa merits relate) until the depositary receipts are

receivel in the internal revenue offices with tax returral

Accordingly, the items shown ass "Undistributed depositary

receipts" repmsent the amount of depositary receipts issued,

less the. amount of depositary receipts received with returns

and distributed by district end tax class .

6 Amounts of taxes collected on Puerto Rican products

mining into the United States we covered into the Ts

of Putexto, Rim under the provisions Of sec . 765-mM)(3

of the Internal Revenue Code ~f 19-14(.Such amounts arv:

included in overall collectionc; u

.

. him I through 4),

beginning with 1955, and arre shown separately in table 7 .

OIncludes Occupational tax on marrisfacturcris of stills,

mctifien, wholeavok, liquor dealers, retail deralcris in liquor

or medicinal spirits, and noribeverage manufactumn of

.p Is .

loincludes wizures, p-altics, etc ., end tax on stills m

condencese manufactured.

Is Included Occupational taxes on wholesale And retail

devalcra in wines or in wines and beer .

ANNUAL REPORT is STATISTICAL TABLES

Footnotes for tables 1-4-Continued

12 Includes Occupational tax" on brewers and wholesale

and mucil beer clealen.

I-Includext taxes on cigamtte papm and tubes, court

fines, penalties, and taxes on leaf tobacco sold or removed

in violation of sec. 5731, Internal Revenue Code.

14 hem" and transfers of bonds of indebtedness or citpical

stock, forcign insurance policies, and deeds of conveyance.

16 Includes taxes on pistols and mvolven ; ghonograp h

mcords ; musical instruments; sporting goods ; hing rods,

crecls, etc . ; business and store machines; cameras, Imuses,

film, and pmjccton; electric light bulbs and tubes; fimarms,

shells, and cartridges ; mechanical pencils, pcm, and lighters ;

and

I"Itch" lud.. taxes; on ticket broken' sides, on Icases of

boxes or seats, and on admissiona; sold by pmprictors .in

excess of established priced, as well as grecral admissions

tex.

17Tra persons; Rate to percent ; mpealed,

effe

t,

WK) r iffi, 1962, mcept on air transportation

which Was reduced to 5 pement.

1 . Includes tasm on transportation of property and oil by

pipeline (repealed, effective AuW"t 1, 1958) ; adulterated

and process or mrinvated butter, Bed cheese, and imported

'dultcmtcd butter and oleomargarine ; fircams transfer ;

and cluccupiational taxes.

I 1 9. Corporation inconce tax rates : Effective January I,

64, first $25,om of net income, normal tax

of

22 percent-,

net income in CXCM of S25,um, combined normal and

surtax Of 50 percent . Norniall tan and surtax also apply

to net income derived from c,crtain exempt organizatiom

from immlated trade or business. Prior to January

1964, rates were 3o percent and 52 percent, respectivel ' I

Y .

saRates; of tax am as follows :

Individual income tax : Effective January i, j964-

graduated rat" from 16 percent on taxable income

not over 85m in 77 pement on amounts of taxable

income over $200,000 . Prior to January 1, 1964,

rates were 20 pereent to 9t per-cent .

Old-age and disability insurance taxes on self-employment taxable income, 5-4 percent for taxable year

n 63, and 4 7 percent for miscible year 1962.

R?tca of tax , ' ' follows :

Income tax withheld : Effective on the seventh day

following the enactment of the new Act on February

26, 1964, 14 pe-crit of wages in excess ofescerriptions .

Prior to the effective date, taxes wem withheld at

the rate of 18 percent.

Old-age and disability insurance taxes on salaries and

wages

:

Empl(;yem' and employees' tax each 3%

percent beginning January 1, 1?,63, and 3~6 pement

for 1962, both imposed on mxab e portions of wages .

"Collected by Customs be inning October I, 1 61, w

authorized by Part 275.62 OfTitle %6, Code of Pericral

Regulations.

t2liumes of stock : to cents per Sim or major fraction

thereof of actual value, except that such rate &hall be 4

cents per Sion if issued after April 8, ig6o, by a corporation

which qualifies ass a regulated investment company or a

mal "rate investment n-ust. Issues of hands : I I cents per

8 1 oo face value. Transfers of stock : 4 cents per 3 1 ool or

major fraction thereof of actual value ; transfen of bonds,

5 cents per Sim face value . Foreign insurance policies:

I cent or 4 cents per St of premium. Deeds; of conveyance : $100 to S5m, 55 cents ; each additional S5oo or

fraction thereof, 55 cents.

NIn the case of certain racetracks, the following rates

apply :

Admissions : I cent for caiih 5 cents of amount paid .

Ticket brokers' doles : 20 percent of excess chug" .

L,caws of boxes or seats : 2o percent .

1-Namotics, I cent per ounce ; narcotics order blanks,

S I

per hundred . Marihuana, St per ounce ; marihuana

order blanks, 2 cents each . Amounts shown also include

Occupational taxes levied on manufacturen, dealers, and

pro titioners . For classes and rates of Occupational tax"

a- table 14.

2GAdulterated butter : to cents per pound. Process or

mrsovated butter : !~ cent per pound . Domestic filled

checic : I cent per pound.

I

inputted filled chmsr : 8 cents

per pound. Imported adulterated butter and oleomargarine : 15 cents per pound . Occupational tax" am, levied

on manufacturers or dealers in these products and we

included in the amounts shown .

2'Transfers of machineguns, hort-barmled fircarrous,

silencers, etc ., $200 each ; certain guns with combination

shotgun and rifle barrels, and other special types of fire.

arms, $5 each. Occupational taxes am levied on manufacturen, importen, or dettiers in firearms end are inchided in the amounts shown.

743-871 0-65-8

85

;11
I

ANNUAL REPORT 9 STATISTICAL TABLES

Table 5-4ntermal rer"nue refunds including Interes t

[in thousands of dollars]

Individual rceme an d

districts . State.. ad the, .1. 1 let . . I I ns .m.. .91emn Tout Corporation

employment U an

, Estate Gift Excis e

Ircorm.

(States represented by single districts indicated in pararthessus : Excessive Oth .

Louis for other Slaters shown .1 bottom of table)

'r .pur

. only

(1) (2)

(3)

(4) (5) (6)

Saw. United Seesaw, sexual I.... . . . . . . . . . . . . . . . . . -------------- - 7, an, M age, M 5, am an 2041ass ge.na 729 M. M

thasak ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

" - SM - Is M a.

$0 17.748

Mint .. . . . . . . . . . . . (6 .

11-in hm- ---------------------- -

Nium- ---------------------

110. 999

121

7, i n

3 117

96,536

17 GO '

2,236

"82

230

cofium is 100 11 1,81,015

b crib Cape

. . .

Gnar .b.._. . . . . . . . NFoul U-1Z

:773

2. 102

2:1,7

7

1 IS

51

: 02 7

17

b94

1.11

141

201

13

34

51,121

3 364 :2 74 : 3 34

fis ,

38 : 795 33

. . . . . . . . . 1

485

n -)

94.325

96 890

4:7542

88

170 639112

95 :

7:

Nnh,ill ------- :_ . . . . . . . . . . .. . .. . ............ 376564 542" 306 2 M96

afewshwarce reeken ---_--------- _- ..... .. . ... ..... ...... ... .

,

Us. 924 U.M M .M 2, an 3, Us n

,

"I

A 29 8 7'

.3

1

26,831 686 68 4 33 1

12 8: 111

934

1,

27 29 : 6

"7

192,004

9,870

4,242

260

1,393

6

259 3,830

Her. . 247

. . .tic

Portsmouth Raw mpshirg

o'

26,46 5 1

23 11

23, 631

1.114

14,115510

1 '

2,117231 1,70796 30 3,323

8 20

Pco,id .r.::: :: : ::: ::: :: h .d

:

34 937 3,574 30 :370 685 102 K 103

raw - - ------------------------------ -

1 .07 an sat"ses IS a2. n 27, M 3,434 IN an

Ab .nd=7:::::: _ a ::::::

is ------- s ) belo w -

S

18 :37 6

331 417

463

11 11

1

2,966

1 1 1 2 11

647

1 311

4 8

796 25

35 1 ~b. ... . . ... 9 44

D. J*We . - ......... .

: 93 4

12

4: 571 64 : 5 ,2 2:

929 304

8 .

660

rt h

Far

17,405 878 11

4'' '" "

4 540

man......

:33 .72 1

42 1

11* 211

1 711

11 9 : :2 8

1 1 1

2, 527

1 17

293

98

8

12

5:

.353

4 037

m

:28 6

50

15:,31 Is: 92. 3:

962 692 7 1 3

R "t~t:: ---- '

Springfield. . ..... ... ... .. as M below) Lmu" ..'al -------------------- . . . -------- ------

41,12f, 16

86 .

176:2177

06

161~3 :6M

277

3 36 1:8 6

01

991 6

93

2 9

is

9:

125

8.70 1

.. ... . . 1,017 7"

152 504

121

19 "1

00, a n

124 1

'7

29,40 3 Y

113

1, M

368

in

Cinc Iew). . 5 I'4. 9M6

Cl.. . land.. . ---

Low

,

259 . 8

:

35 1

., 2fO: 6

93

.

"so,

2% 38

.

3 OD4

Detroit, . !:

,3, : 7,,

7

164 11 7 41

'

'14

4'

9:

529

Indianapolis.. . . . . . . . . . . . Indiana)-------------_---- ___

Loul.,111.. . . . . . . . . . . . . . . . (Kwrtucky)__)_ ------ :::---

W t Vi i i

1,18,350

7444 : 1

030

8: 103

13:115

29

128:07

3

64 : 312

39 452

6 1

3: 2

1,77 1

849

U

2

12

94

16

2

V)

a 6

6

4:29 1

34a

Par

lumsburg. . . . . . . . .. . . . ( es rg r m

---------------------------- -

x"'"

': In '' It 31N

a . an 11 21, M

. ... .

Afinu'lu

:

3 2

21 .1131 1,

1

1, 055

"' '2413

589

HS

""9 2612

1:

.

7 96

601

AS

10

i t

50

390

3,82 1

64

5

Clury-. . . . . xa)~

D b kn ~ :: :::' :' : :: --- :

V" 'T

_

l

141 :517 2,697 114:899 9,852 216

. . .__ .

ii 3,

M

0 .; v ::::

Cobo

. 7' 1

7

1

:

' "' 11 93 a "'

116 5 2 395

Little Rock. . .. .. ... ... .. Arkansas). . ........ 37 : 64 1:405 33,3Do 1:318

78

1 :363

:::.. .. --- _

01,10some Clij- new 'r'"' .. ... .. . ......

98,93 7

74 454

9,888

4,685

a,

7 72 7

4:S731

17.82

121

1 132

1

: S2 1

Ofthit, . ... ... .......... Kliessai)._ :.. .

71 :

ass 998 5,978 57,296 2,364 422 7 5 , 942

. vavi, -1.... . . . . .. . . . . . . . .. . .

. 6 ---------- 63 ..0. in, " 7 1a3

'

SSM M 11" "S NMI

is

3

11119379

Albany. . is

Mo- ---- .) -

2 5 ,7 9

2

. 1

2

19

-1

230:925 1,17 . 726 2 4,174

anhattan . . . . . . .. . .. c~ M=W~

7 1 "

6048,232 '

1

54:111

004

11172:51

645

13.:411937 12: 1

513

If

2

23

038

5,

8,549

MI&A~ll.-law,

106 d d D C -10: on 13:52'7 143 M135 1:649 an g`91

i n

32 IS

0.11knor.. . . . . .) .. . ... ... .. 9INS

Newark --------- I --------- 211,

928

21.111 11 111 2 1 199 9% 30 14 06

Philadelphia aw

270

0 3 '2 0 6

2 2 5:620 :257

a90 6

:

7

0 11

we

P bu

h_ .:

be one

lite rg

14

715 12:007 133,319 3 071 244 3 1 1 09

Rich end

Wll .l.gt. . . . . . . . . . . . . . . . (D .I.w., . . . . . . . . . . . . .

34,065

16,789

9.937

2,160

118,685

13,490

:

716

923

77

27

3

----

:

54

28

~- - I . . ... .... . .. . . . . . . .. . . . . .

'1k

lit an 111114,1311 a, an i'm 17.74

Acchc,.g A

B .1 . .. . .. . .. . . Id-L )- ----- . .. . ... .. . ... ..

k

.)' ---

22,227 66

746

1,095

9

. 206

18,360

528

1,208

..

3

. . . . ------ -

------------

179

1 1

... ...... ... ....... 20, 43

1

689 17

'

117

is

1

:

451

Honclu -__ H

-")

' 76' 1 2

:609

954

50 V) 30

Lee An I es . ... . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . `x)

,

6 34 : 164 5 :906 13,113 1 621 1,193 Ii 3,

641

__

Phnrl .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pa thmd _ --------- A, - " M n )

58

1

66

:V11 a '3 4:5.' ' 67 107:113' 2 2,934'

151

9D 2

636

1,156

0... . .......

N .nd

.j_

. .

22,567

1 M " 9"

1 2

4'

68

1

2'

~

S. It Less

Utah . .

. . . . .

. . . . .

' 708

:349 35: .7

1: Cg

4

8

371

Sea

.)

below)

sauffil._. . . . . . . . . . . . . . .

"hIngtor)

. .

San ftamdrct __ . . . . . . 34 1 : 007

123,341

26,605

9,319

297,169

105,761

94: 53;75 1 :9 9 177 4 53

16

6,630

1,689

(says .- - M-1--t-w . 41

Pny~. III co. . . . . . . . . . . . . . . . . . . . . . . . M "s

Oth. . ... . . . . . . . . . . . . . . . . .

ti~

713 3

SO

5,42 7

459

n

251

31932 1

1 4

.1 I I

------------

.. .... . .. . .

Total, , States not &be- box.

a 11n I , 17 171 M

511 850 6

62

27

9

6

9

,,i . .1.n . :: 2 317 64 1 0, 272

b~ C 41, 694 61 :894 325 ~495

11 j

13

1

:

44

8,

c) Now York,__ .. ....--- 92 ,0

8 ' '

~ 1

" '

' 07

8

"

18 793

S jas

49

9

1 , 37 9

cl~ Ohio ----- ft ijiWla -

4 11 : 1 12

42

7'

55 6 : 0 5

4 3 2 ' 4

334

3'

1 57, 3

34

43

37

.

7 94

'

run

Taxes. ..... ........ 351,197 81 : 110 246

.

489 79 7 5:M7

I Includes drawbacks and sts:p redemptions.

Flo. he,. of been ad., to reflect reimbursements from the Federal Old-AS. mf Survivors and Federal Disability Insucance Trust Funds announthiLt .

""' "0" in I

Ind 00 In 1963 ; from the Hi5h.y Trust Fund mocating to 126,637,000 in 1964 and $126,319,ODO in 1963 ; and from the 11munp y.ho to 14.,0

ment Trust Fund

Mon SrI39,425 91,000 In 1

964 and $3.09 ODD 1 . 1963.

Net .1 64,870 undeliverable check, totaling $3. 636,0011. -Lon than $500 .

86

4

I

ANNUAL REPORT as STATISTICAL TABLES

7able 6-Number of returns filed, by internal revenue regions, districts, States, and other area s

Internet mvep .. m rn, 'tV. districts, Stion, and

(staff

as

iaprs~euti..cds fb.yr smile districts Indicated In

11r

.ath-,t other States shown at bottom

of table)

otal

1)

mll,ld.ill

I . ... tax I

(2)

tion Incom Co"'C". e

Us

(3)

artner -

ship

(4)

Declare.

ticur, of

estimated

to, an .11

,her i -

come is . .

(5)

mployment

tax.

(6)

state

ta x

(7)

ift tax

a)

:cls o

t

(9 )

Unit" Masse. sexual. . . ~ . . . . . .. . ------- _ . . . . . . 1011, an. In K gss~as 2, 387. ase suck. M 7, Us. Us 22 .753, 220 97,3311 107,172 I,M. m

Atlanta- ------------G -6 - ------ 1: "73:690 gas 7 : "171 INS W21 : 3731 1"1' 71N 1 I M11' IMI 1 13 1 11 U.'123" "I"U 1 11S1

--------- . . . . . -.

8 8

1 As S1`

1

10 9 NI

,

12.

54

1 1 : 55~ 65: 435 342 : 533 .

613

1:

208

54 : . .

N

Columbia- .-

. 'No.,th

C .11n

G . . . rusbon.

,

" n

:~:::__ : : 1

2,739

21 '

I :26 6

1 I 2 '

0.7

~5,4377 3 11 1731 ':5

isf71:11 75 2 68,585 54 1

1,217

.

692

Cal

4873:029

33

7

N

Jackson . . .

. _ ------ I ------------

778: 1) s 5:698 7,944 9.131 37,240 213:1186 451 603 44,677

Jaksom,ill----------

Nnnvlll.~ ----------- FTenn ..

12 :907 58

722:2268

1: 711 1 22 1

DO: 18

1 14oi1l

16:

5

12.

I

: ~

1 so

208 &M

87:143

7232, 4 :31,46, 3.35

9981

4

117

1:

234

1 Ile, 7 g11o51

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

heavenA u0..--- '""' ------- - Is

:

:'511 27 ..: 0 341:"71'3 1"7:"' 19D " "3:4 '.8 '37: '677a

1 "5 121, 1

5,

1 . 0111

480

7 "1 '558

n24g:3"8'6

urlington

N w

11:151015

227

2,111 129 135:8 31 143 :012 94 1 2, In

M

Hi. M

Is "a

-1. IU210

SO

1, 1 "

204

3,11 51

19

1113:

566

Hartford . . . . . C.

~C

1

111 134 1,11 21

4 " . .

1

2:176 U2:117

8

M : 37

1

P0 rumouth . a Hainp & h Ira) . . . .

' as8 5'' 147

Providence--

Rhode Island)----------

3" 87: 9

492,180

247:

67 6

330, 999

5 0:8 7

, 0,982

2 221

2,669

28,819

32,441

.3.729

97,273

3 2

391

35 9

458

15 857

16:96 7

.Id_

M

IS, 430, IN 9.01,510 1111 .213 179,450 1, M, M 1,222 711 15, M 1 n 1 an

Abaco... . . . . .

. -uth Dakota6 : :: ::: : .

_' b 1 :. .. ... . ..)-

t

- ~

4, 33' 22: 11N.

11 147

1

1

2,18fil:1IR

111 17 1

.03 :1 1.60

14 111

1

0

: 710

389

11 31 9

42211:173 a n

1 31 111

95:

go, 5'9"1

117 322

7

J32 17

2 7 3

1 : 21. 1

21:99 4

12

63:'I'll

o

h ta..). ._.

On . . .. ....

Fort. No Da fo- r

3

rt

336 50 : 6

,

210: 3% : 37 .

3

4: " 1 1. 3~3 : ~

onsin)- . 931 ' .1 31 393 18,32 3

.--.

W

[ oc

is

37,411 I,afl,311 1 1, "1 21 11 119 1 1 41,52'

2

11 2 12 1 1 1 1

1 '

ska

.. ..

.. .. ...

St. L.W,_--------

Missouri)

.. ..

. . .. .

Ormch .__----- N

a r

a

J

.363 948,, 41 1

475

1 5 002:686

048

9 4 4 8

32 :034

ll:,g.

25,064

60 7 : 6 ,

198,730

197,.90 7

519 as 1

1 13 : 7

11

1 72 : 7

2 121

5 :

04 2

11 37 7

St. Paul_ ----------

Minn is)

. . .

- -_

829 .

1 711

:

In 11

2

3 11 1 11 16 130, 174 382' .84 1 : 785 1 :423so 76S

Sao slow)

.

Springfield ------ b b

: ti5l,

631

4

998: 55

12 : 176 9:

028 118,725 334,721 2,053 1,485 64 : SIR

IC-1 rn.',-1 : : 6jlaw "' N f TO " " T ' T ' " " '"~ ' ' ' '!kn

C ;.v" - ----- S. . d) b 1. --- .land

~

2, O ,, 1~ 7 O

1 1

1 : 3.: 36 1

2 141 32'

~1 : 597

41

a

7

%

17:7 6 7

2' T 1

218. . 48.

,7 5 6

4608,121 '

1 : a03

2,391

2. 21 2

3 261

461

2~ 7 ~

1

M h Ra

n

I ; . w

Detroit , --------------

S.

:

3 .57

: q

2:6. 4

:

4 4 37 : OO 2 2" 7 7 1 1 493 2 155

2: 9as , ,

6

6

fixd;

Indianapolis--

i

2

121 1 1,111 21.1 .

20'00'

1 1 :

.0

, 9:

4 105

: 0

2 Is 2

.. as

K.r,.,k

L.Uisvill ._----------

379: 0.6 898:

639 12,821

1

7 1 47 7' 711

3 R '2

2

1 2

1:

15B 57:021

Parkersburg ---------- t Virginia). .. . .. . . . . -

--------------------

809,723

as'

S27,1011 9,22,

2

9: 3

5

gas

3: 954

T' '' "

1 76: 548

I` Mk i n

390

k M

667

ul1

42,511

All" Is1 21 . . ... .. --- 151: M 2113 :641) 4:174 21,030 020 204 582 2 ! 8

A 1.*.w.): :: : W..in .)

Ch

2, ON715: 531

$65

:,1,4,16'

1

21,787

2 `1 7

281, 7311

3 094

111. 332

795

ON11

: "2790

1,171553 .3

2.

133:111

IS, .

be 1 3"

117 :31 21: 3 9 31 .623 167.50 629,773 1,679 052

1

04.171

D.m, . i

ittle R Arkin... -------- -

I

1 : 76:051

920,911

666:11 7

00 128

:18:170972

1

4 24 a1 4 21 8: 182,

as

231:

216 2981

9 1

47'8 940

446.211

.02!

* au"

1

95

91'

11 7 56

'

1 91 7 11,111 72 132

" 013

942

.hm kl 7 7f '' Ok1 O .h...). :

:

2

2 6: 016

: ,1 4

765

13 :62, 3 '55 :

SO 7C 2.: 267 920 :531 6 : 52

Wichita ran) . . . . . . . . . . . . . .

New Yeah reason . . . . . .

. . . .

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

1,211,950

go, a"

751,097

'1

10,71 8

'

13.879

. '

95,555 278,51 4

2~ 121, 711

1

. 58 9

IS

3,132

13 112

57,46(

-3, 43 1

:23D

980

150: 97 13 : 184 8. 2 17 72

M

~12

1 :

16

0

41 .111

3,691,765

2 485 059 " 2 " 33 ' 7

6:

27 979

11

S :020 3,181 7 97.59! Manhattan .. . . S lo

w

Buffalo ... . . . . . . . .. . . . . Sao b

S b:

..

2 334 8 , 455

70,565

1 565: 065

1,993,615

3 . 0: 7 6

132,322

20: 535

44,734

1

70,660

498,976

,117,776

1,070,273

8 53

23: "

18:142

23 12 63: ,i

MI&AtM,U, Mhon . . . . . . . . . . . . .. ... I --- Ie

:5'34' I "' 72I 11 13~ I72'. '16 035 : % 582

a I 1

19"

525: Sas

a' !"

87 8

11'7n

2:119

S'

13:23! . . . . . . .

Newark

23 Gfi, 8

071 2 441 311

,

73 111 12 1 24 3 2 In 771711 192

1

3 21 1 1

Philadelphia-------- b : : : : :

IRS',

3: 012 2 7 : , ' 4

55B

: 3.6

42

32: 281 3 .3

1

777,034 3,

2

' 28

3:S.2 15':

:: : se

PI Ib rg2 37608:299

1 5

1 7,06 20,299

1 2

7

M ' "1

1,

1

"1

1 1

1

' 7

.%r i7i me )

at

W i l D )

2:076 .733

277 614

: 3 9,58

1570 9401 216 9:0013 151 77 : 6 7 8

1 5

2

25 764213

479

5:57108'

1,

3

12615 :95

3

73 :23

1

iftn ng un ------------ o -. - ------------ 727 0

wwwassn, ----

,

an In

,

9. 11a in in, 182 in, an

. ,

is'"s on

,

--------- 7 3 at ZU

I GO '

6 :

"' ' 4" ' T ? ' 20

20 27 M

-

2154 : 7

3 94 3

as'

219,

248

233

'12

4:342

37'

4: 7 5 5

' '

2 : 199

2 2'5

85:064 240

'7'

293

174

DO

P2 7: M

Herel .1. . . . . . .. --- 368 39 8 247: 263 :24S 30: 762 74' 151

436 15,65(

Los An prox.rl a--,- 5 874 :23 3 3 891,030 79,425 66 317 4 11 7 1,111 $8 0 5, &M 4,392 St . 94;

Ph A -------------

Portind :' :::': - go - -------------

-

1 721,16Sn4

'023 8

4131 6 9:818 173

119 2': 4831

: 592

13,674 '

49: 615

71 115

155: Oil

227

695

530

864

694

1.216

31,57(

46,27,

Rtme ---- ---

--------

Nel I')--

225 :762 149,605 3.606 2,19 .

15: 20 ,5:

'54

142

2

74

:: : 11 5 ty- .

S21 Less "' 470 '4 " '1' ' 6 ..

5 3

1

2 27

71

a 267

N

225 460 2 1

Sa Franc --- _-

seettle---i"' (Washington). . . . . . . .. ..

_

31 172 :0 3 5

:619,536

2,554: .1

1.029,265

32:643

2D.633 11

:,2

6

16,641

:

14,

1

S

125.264

: I

s

O

Up, aS5

4,499

"S

41 366

211

1 57 141

94:09

am, feet wil ;~i . . . . . . . . . . . . . Say

:h '!~ " 1 " ' " an ' - 1 - - I.

K

Puerto Rim .---------------- -

Other--------------------------

:

170,631 R

211

231,94

4

1,171

18,5 24, 267

906 108 55 7:2605 1,370

3598 66

P

New York ---- ------

id Ohi ------ _ : ------

P opsylvanis--------

T:us --------------

Totals for States not shown abov e

Z1: '17 21:

10,877,015 741

56 LOGIN : "'

5,093,095

6,445,711 a

6: M: 7 Ma

1: 4M12:

, 773"

3,106,763

112 .068

2% 99

1160 1:114

92 55,176

119,123 62 17

107:4033

42

SNUG6'

60,361

925,492

11. :713

. 735

3-

304

493,549

335,900

1 7

: 7 '

1:116 3 12

2,421 1, oil : 71,go3

1,193,300

1,278,163

":3,

`04: '1'94

4:111

3 ~52

I Ifid.d.S91,590 to.. 1040 0, NO . NBA, PR, and VI which are included in "All other individual and fiduciary" returns in the table an p . 11.

16: 74'

746

13: '12

S 177

5 651

6:093

339 093

185 :357

1 . 22 .

243 :11

,37 297

87
ANNUAL REPORT as STATISTICAL TABLES

Table 7--intermal mvenut tax ;ollected in Puerto Rico an Table 9-Estediffishmagnts qualified to handle tobacco Mo.

manufactured products cousin into the United States, by terials, or to engage in the production at exportation of

Objects 0, Inflation tobacco products and cigarette papers and tubes

flifthousand-tchillanil

0b)"In .1f W.H.

"

Total ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Distitill gpirlits .... ... . .. . .. . . . . . . . . . . . . . . . . . Distj W ad ts, rectificition tax. . . . . . . . . . . . . . . .

in . . . . . . . . . . . . . . . . . . . . . .

Bear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CIP"Ll.-T .... . . . . . . . . . . . . . . . . . . . ----------------

Ciea . D ... . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . .

Cie . E . . . . . . . . .. . . . . . . . . . . .. . .. . . . . . C F

Cie . G. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . --

cigarettes. armilL.- ------------ Manufactured tabsicis (chewing, mailing, and

1964

45.153

11, 1112.

14

1963

42,465

3.,,5271

----------

0

Class of establishment

N.:n..u1: 0'uu c'! ,TftppV,'9 i ~-d- b----------------- Deal.. 1. tube- material. .

.. ... .

Too.- expert warglumas.. . . . . . . .

A-IJ. . . 30-

=

'4 2, 01 6427

'1963

2,1412

28

4677

21 : N1

4' 107 Table I M-Patmilts minting to distilled spirits under chapte r

-I- than $500.

Noter-Amounts oftaloscollented in Piano Rim on tDbacco .nd liquor mumu- fact . .. ..Ing let . the United States jr. comr-d Into the Treasury of Puerto R,

Rico .under the provisions of section 765,2(oX3) of the Internal avenue Code of 1954 Such- unts are included In overall collectiont results (tables I through 4) . beginning With 1955.

Table (II-Establishimenris qualified to engage In the

t:on, distribution, storage, or we of alcohol and .1chad .h .ulf.

I quon

Class of establishment

Distilled spirit.=,).

plant. in!

......... . .. ... ...... ___

F.dilti

.

Production ...... .......... ........

Buirum, in

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

W-h .

.mLK.::: ----------------------- -

. . ...

in

T..pald buWl ' ;j-.::---------------------------

R"'Ifyi, ------------------- -

Denatured and

Diialimem specially -tured k .h . 1

Users of specially dimatuiW-i6~Wimul dW~i6ia-

- -------------------------------- ---

a. Rimmonsuism, rabottlims, etc., of specially douttu U alcohol articles of . ------------------------ ::: :-:- ba-f- alcohol . ... . . . . . . . .

Beer Win.,: Brawsri : as. . . . . . . . . . . . . . . . . . .. . . .. ... .

Bonded win. collars -------------------- . . . . . .. .

T . .Plid win Vt. bottling . hop .. . . . . . . . . . . . . . . . . . .. .

.m.gar: using vaporizing nacess

.... 1.

Import-.. . . . . . . .. . .. . . . . .. ... . .. .

re W hd ::I:l 1~" limmis . . . . .. . .. . . . . .. ------

Who2."I' .1. 1 d bear. . . . . . .. . .. . .. . .. ... . .. .

dealers i1

'211 it if R I M . 1 Other : M. ..fact.,. . of mminsmisit, products (d .wb.,k).- Fruit-flaVor concentrate Plants . - .. . .. ... . .. ... . .. . Bottle manufacturers-. . . . . . . . . . . . . . . . . .. . .. . . . .

A. of June 30-

1964

355

1767

26GO

43 149 12 9

43

3,680

17 :11494 199

439 993

1, 8'7 3,713 7,07 7

2757 :11, 14 165

Sal 47 10 9

88

KK

360

198 26759

148 44 125

42

3,685

17:41 2 176 sit

448 103

4

13 7: 7'1

33 18'2: 3151 145,051

9184

6

1

07

51, Internal Revenue Code, 195 4

Sect n

1. U5171 Section $271, 1. R. Code

. Cod e

status Total Deal..

s .. ofDistilled in ima .

spirit plantss itcl"~ .. .ip.11~ * ' .Pll; x .

hired ders- firms- ree

alcohol buted tuncil lcohol

kh.1 ru .

(1) (2)

(3)

4) 5) 6)

in effect July 1, 1963 111,406 209 4 2 3,657 6 , 472

-ad --------------- 599 25 5 .309 1 2

8

Terminated, total . 594 -31 -4 -311 2 6

rinx Oth law -------- ------- I ------- ------ - minated . . . . .. 593 31 4 10 2 46

In riffect Jum. 30 ,

1 96d - -- ---------

1 .410 03 4 3 655 5 484 A . .~ vd - 91 4 8

4

.. .

. . . 5

garland .

ANNUAL REPORT * STATISTICAL TABLE S

Table I I-Parrynits for operations relating to alcoholic beverages under the Federal Alcolsof Administrative Act

Distilled spirits plants

Status

Grand total Warshoulfir.

in.

dul pl'o ;

nas

bland.

porters imi-iin .

Total - Distillers Ing and .tihif, .lem.n.

.

bottlin g

(1) (2) (3) 4) 5) 6) 7) ) )

y

493 1203 12 49

'

6

'

0 900 sioded- --- ----

4

66 2 s 3 3 9 5 6

,

, 1 "

Terminated, total ------------- -------- 1,571 70 0 3 1 4 1 9 4 254

R... lied ------ - . . . . . --------- . - 3 . .. . . .. ... ..... . . . . . . . . . .. . . . . . . . ------- 1 2 Otherwise terminated.-:

1 568

~

0

~

0 1 3 3 252

In affect June 30,1964

r

189 12 11 311

2

857 0 79D Amended . . . . --------- 1,413 212 . .. . . .

. . . . . . . . . . .

. . . . . . . . 1

---

77

I

3 4

8

2 7

-

~Ucludes parmlixter Customs manutrictuflni bonded warehouses since such establishments rus net required to quality as distilled spirits plants. Column (2)does not represent the sumof( ),(4),snd (5) since one permit may com, nuo'sthan on-fivily . Raxised .

Table 12-Partnits minting to tobacco, under chapter 52, Table 13 .-Lobal activity under Federal Alcohol Adaminis.

Internal Revenue Code, 1954 tration Act

Manor- Export

Total turers of warehousis

Status tobacco proprietors

products

(1) (2) (3)

R." July 1, 1963 . . .. ... ... ... --- 633 505 28

sued . . . . . . . . .. . .. ........... 77 43 4

Terminated, total --------------------- 93 68 5

R... kard . ..... . . . . . otherwise . . . . .

In affect June 30, 1964. ~ ------ 62 1

4 Amended . . . . . . . . ----------- 7 1 '

-

6

Type of labe l

Grand total --------------

Dist] lied spirits, lots 1

DoImmestic parted

Win .,, total . . . . . . . . . . ..

1Dmzsx . .ti, : : ::: :: : : : : : : ::-::

ported Malt beverages. bital-. . . . . .. . .

minti, DoInrisorted : :::::.

Tota l

(1)

50, B05

21,099

19:291 BOB

27 .126

197 : 942797

2,580

1,917 663

Applications acted upon

Certificates issue d

Approval

(2)

48,733

20,57 9

191 :84 6

733

25,619

6,823 18,796

Eximip liars .

(3)

958

16

16

942

EB

2,540

1,906 634

Big .

approved

(4)

1 .109

1~1

47115

KR

94 481

2

89
ANNUAL REPORT 9 STATISTICAL TABLES ANNUAL REPORT as STATISTICAL TABLES

Table 14-Number of occupational tax stamps Issued, covering Recall year 1964, or portion thereof, by clan of tax andby Table14 .-Number of occupational tax stamps issued, covering Racal year 1964 or partion thereof, by clan of tax and by

x Internal revenue regions, districts, and State. internal revenue region,, districts, and Stat;;~Zcnflnue d

I

Dbitilliul spirit,

Total

Rectifiers Retail deal . ..

".. ."c'u" 'a of Internal rwanuo regions . districts, and States onuirsts,

occu NO.-

beverage p"u,t.

States .p,-td by single districts Indicated 1. par..

r

none fut.r

-

train ; Louis for other Star. shown at bottom of table) Us

i

I or, c 1- 20,000 Whole. Net Not . More

,lanip, .u.d Still.

$55 '

the .

20.000

proof

gallons dealers, "I s dill

I

.0u ., At large,

Medic.

Met

exceed.

InL25

exceed.

Ins'50

then

50

,=,

$255

$54 $54 Spirit ,

$54

go] no

$25

g.11sn.

$50

gailkin,

$100

$110 $220

(1) (2) (3) (4) (5) (6) (7) (a) (9) (10) (11 )

UnIted Steraw, -1 . . . . . . . . . . . . . . . .. . . .. . ... .. . 1. 113. No gas " as S, us say, on an 1, an n an ns

learlwasent eighon . . . .

--------- - ' ' . .. 1 an ' 3 " -------- is 6

U AS

14: 709

3 ''

::: :: ...... - 1 37

'

No

. . .

........ . . .

3

2 10

1

2

5

)

Columbia to Call : -- - l 3L 681 -------- -------- ------- -. 14 947 ------- -

------

. . . . or -- - 2 1 6 857 .. . .. . . .. . ......

. . .

. . . . . . .

'

13

. ..

ru

I k So . .. . . . Mississippi) ,

,

J: ll 448 26 2 __ ---- -------- I ------ 3

Florida) . . .. . .. . . .

c

lisonville.-

2

9~813 1 1 63 4,33 ........

. ..HHuh,111, . . . . -------- 13,142

0:

--- . . . . ........ . . . . . ..

.

29

Sey

72 1

sl

2

No

1

7

........

9 a

he 39 -------- 1 2 ------ . . ..

1

2

in

gbi.

Iu

212:24

791

3

--- . . . .

2

... . ..

5

. . . . . -

111

1

7,16 1

411

---- -

------ - --- ----- ,

5

------ - thi

B' He; ld, _ onnecticut) ------ . . . . . .

Portsmouth le, surroildle) .. . . . . . . . .

ICR~h d l d

18,614

4,602

5 419

. . . . . . .

. . . . . . . .

1

... . ---

I

2

. 1

3 1

23

5,

16 5

534

1 821

j

------1

: : : : j

3

-------

4

j

4

o

a n ).. . . . . . . . . . 3 Prolkince ..

t D

,

ges: 1 "0

. . . . . . ;_ . . . . . . ..

16

U a: s

97'2 an

. . . .... .

IS a Us

A b .r ~)

on'" So

. be in 48. 188 . . . . . . . .

2

... . . . . .

1

. . . .. . ..

4 140

3

15,41 1

2 317

------

i - ------ - ------ - ------i - ------ 7 1

1

.

D.

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

Host Dakets)..

1

141:11IT1

4

1, lj'54 : ::::::: . . . . . . . . ::::: ::: . . . . . . .

Miles

Wisconsin). . . . . . . . . . . . . . .

N k

45,548 . . . .

:, : : 1

9121

'

3 73 1 2

930

2

64

374

7

i 1

1

11

,,,he ebras a 2 ) Missouri)

I"

29:11"9 __

------ -

j . .. .. . _ S3

.

5 919 143 A

... ... .. 1 39

.

S Pa .

., ---------

Moretti.) . . . .

t .

23 17 ------ - ------ - 1 21

2

:720 6 12 3 1 4

(Sea (b) below) . .

1,:

830

j j 2 7,

027 - 6

2 9

:MbMI laid"

' -------------- ---------- - M 15 S 40' "5 So

Is 7 5

Cincinnati- . .::::: it U

Cleveland_......:::::: : S:: ~d~ b . . . . .. ... ..

36 4

40,573

6

2

. . . . . . . 21 137

98

116 277

004

19

- -----

------- -

3

3

3

3

2

24

' 1 5

Detroit . . . MIC

NN

I

So ' 1

3 2 4 164 5,856 10 15 1 27

ImI )

I*nl,, l

' _ l)

24 :60 8

15 720

. . . . . .

3,

12 141

2 0

90

335

2 018

------- -

19

------- -

----

.....

..

I

7

4

f Vi Psrkersbi~j_ . l. , 13:500 1 -------- -------- 1 505 . . . . . . . . F : : ::: :::

I

swarthwaft agswe . . . .. . ___

Albuquerque "1': 6"72a ------ -- _- . .. .-------- .. '28 '3'87 1 --- . ..... .

5

A Ch ------

.off. ... ..

. as

.y:ln ----------

""o"I"

"1 :127031 ------- - ----

2 - ----- i - -----R

,,,

D. .. .. . ... .. . . . . . . . . b.I..)_ _

So - (I

-::::: : -- -

~

12 :11,.1 1 1

20

1,643

2 ON

10

47

ISS

7 a n

1, ou

)

Lit to Rock [A 1 I 31

7

.. . .. . . .

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

a ~

767 1

. .. . ...

- ------ -

...

---

an.)

__. . -- -

-----------

.

No Orinns

.I.

5:

2 107

::. .... .. 1 6 5,

27

. . . . . . : : . . . . . . .

- -

Oklahoma "Ity~ Oklahoma, . . . . . . . . . 13.523 1 ---

if

949

.

2 ------- -

.

Wichita --- H n

.

.. .. ..

Now vairel _

.

. . . . . . . . . .. .... 13,163

uo,m

.. . . . .

"U"

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

4

31

US

1,278

216 Us U 2

. . . . .

12 - ----- ii, I,;

A~bim 1:1 1* . . . . . . . . . . 16.811D 13

3to3 'i

s

"6: 704

1 3

11

- ------

1

------- -

6

------- -

24

1

3!

. .

as b

Buffalo . . . . _ . . . . . . . . . below

I

4 4

361~79

3

5

1

--------

-----

2_

2

1 ' '5 :: : : : : : : 1 I

10

1

1

.. .Manhattan . . . . . . ------- below . . . . :: : : : : . 11

-Anown- "a- ---------------

37,293

'"

M

1

42

. .. .

is So

71

in

7,3 17

4.

''" an

---- ~ _

B.Ithlo,.. . . . . . _. . . . . a . 11

I C )

30:972

. . . . .

. . . 2

7

6

3

53

63

5

807

13 551

7 5

18

1 3

I

. . . . . . .

H-k_. . . . . . N ------ 1 i 73

"

40,932

1 5

2 8

11 1 1

51

1 ~

2 3

'

2

_. . ..

i- 2 5 55

AM,

1

29 071 2 ... _ 1 2

8 :

273 -------- 3

------ -

ch.

IN .it ------- tglnla) 1 9 1, 1 ------- ------- I III - 4 i

Wilmington ... .

. . . . . . . . . lower.).

2: 3

DO -----

9

84

5 _...

------ - ----- - So ...... .

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

_ MM

an a as

An,haiss =~. . . .. 'A

U ... . . . . . I

So d a "I.i' ... .--------- .. . . . . . . . .-

2, I52 _. . .

-------- --------

: : : : : :-

7,3,1

- : : : He ism i

an le t ) . _ ~ --- - 6,633 -------- - . ...

28 !:'10"3 Me

Losn' 'Hewe( .`) i

563: 1

420

1

1

-----

a 223

I

1 1

1

a

5

!

PhNnl . . ( A

-

21 - fig

2 :

646

_

go

Portland .: : : : : : : : : : : : : :

no .

Be

9

13 35

4

" '

: : : : :

----- ------- -------

70

24

1,333

:: :: : : 1 ' 300 -:: -

Soft

:

5 971 -------- ------ -

5

-- -

mi

132 : :: : :: :

4

a

,

S n Frand is, _ . . . . . . . . . So. .)b .lc.)_ . . . . . . .

S :

SH!

.. . .. . . . . . . . . . . . .. (Vinhinght.).. . : . . . . . . . .

50,988

22,431

1 5

2

6

.

. . .. .

.

. 1 1

143

14,544

5,543

5

-------

2 . . . . . . . 1

4

1.1als for Star. net shown all . .

..

1 17 408 1 1 21 486 30.487

i

5 93

I llinois . . . ---

, , : '

1 8

, 2

"

21

.

438

1 2

68

3

B0

sly Yor k

0 his . . ..... .

130,266

63,937

22

a

4

3

141

3 35

IS,f. IAL

281

14

19 3 5 i i

63 re . . . . . . . . . . 80.041

3

1

1 9 S320,

574

7 4

2

to

4

3

3

2

S1

22 a

T

..

. ..... .. . . . . . . . 58,353 5

.

.. ...

.

71 3, 6

90

i

Wi... Bea r

Internal revenue lesions, districts, and States Wheinal. dealers Retail deal.. Braware

Retail

Temporary

deal. . I n

,States roprearrited by smile districts indicated in Whicit-1. Retail dealers uo r

parentheses ; totals for other States shown at bottom

Wines

Wines Lon than 500 barrels dealers, dealers '

.

at large

(H.i no,

.1 table) Wines $255 . and be .,.

$255

W~~ ad beer .

sm

5DO her.

Is, $55

or more .

$110

$123 $24 $24 or bear),

$220 par

month

(12) (13) (14) (15) (16) (17) (10) (19) (20) (21)

urifted Notes . -1 . . . . . . . . . . . . . . . . . . __ an m lie ai'm 2 m T'Ns M . ?43 m a. No

. . . .. . . Is in as 9, no . . . . 7

: : . . ... . sea " an . . . . . . .. '1

Alabama )

'

13 15 22 798 ...... . . . 2 ll

61

1,564

657

..

. .. . ......

3

. . . . .. ... .

.hmn -: : :: o Ith

G-,,b . .. .... ...

North

"

"' I - ."ches

30

0

92

11~48 79

34

73

3 52 2

4 .256

. ... .... . .

. . . . . .. ...

40

. . . . ....

~

Jusum- -----------

is.

-- -

Vip ii

__ __

2 ... . 3

1

02

.... ...... --- 68 3 11 ---------- 10

.

Juk.-Ill... . . . .. . . .

"mas i

do)- :: : :::

Nnh,ill------------- ) . . _

: : : : : : : : 14

--- .... .

------- -

. . . . . . . .

4, 4

... . . . . 2

107

91

: 9

3 95

4 478

. .. . ......

. ... .... ..

3

26

""khr

-1 we -------- ---_--------- ------- 1 as a ;E F 174 0 :712 . .... ... .. an

A oft, ~n .. . . . . . ... .. . .. .

If

Boston. : il. xac;~... 2,111 . . . . . .. .

-------- 1 3 2

..

840 . .. .. . . .

.

.. ...... .

27

3

139

167 . . . .. ...

...

H.M. 4

imrielfil,t) ..He.,. ,

Portsmouth --------- ~ ~'N i

5

.... .. . .

1 .54

29 ,

24 7

1 : 565

. .. . ......

. ... ......

236

. .

Pro,idad ce . . . . . . . . . . (Rhode Island) ---------- -- 2 10 33 . . . . .. . .. . . . . .

Mid- -over Aber .... .. . . . . . ----- -

A rd..n

0

.""

)

S

.ut

I N 10 in 1, US 21 an

1 3S3

D

gre

---- s

Chilg

___ - below) ---------

-

@a ~b )

- -------- i - ------ F 4

...... ..

239

, 2

85

. . . . ......

. .. . ......

I

-i ~ - So

Do. im.i: :::::::

F. ----- -

a

koi

.

N

1)

I ko

owE"

: : : : : :_ :: : : : : : : _ 96~

'

1 78 1,31,162 . . . . .. . . 3 .

18

lam)

.

---------- - IS

W

-------- ----- ---- -------- i .... . .. . . . 30 2 4 075 . . . . . . . . 565

her ------------- M

a

. . . ..

0. abrask ------- - ------ . . . . . . -- ---------- 2 92

1

sdirrssmta)~ :151 -------- 5

--- -

Missouri)

. .

St

SL

1 1 5

13

1

2

6

'13 2 1

194

7 :360

13 11

21 9

S,crinjifi.ld . . . .. . . . . . . (So . (b) below) --------- -------- 2 1 16 -------- 4 14D 265 . . . . . . .

'

31 9

------------------------

-

m' "

IS in is 10, on

n 70 I'M

i

ci.c ti :: :~d US

di

4

4

145

5

4 1

' :4

3 -

4

7

70

09

591

S'

2

1 230

2

Cloth Michigan) ------- '5

Indi, India .) -------------- -

l

5

--------

112

2

,

5

"G60

2,116

2 7

4 1324

1 1

17

0

336 --------

215

55

Loili Ksntucky~. ......... ... I ---------- - ------ ----------

1

118

2

248

F

. 40

Park West Virginia)---------- I -------

- ------

1 114

3 :

515 . . . . . . .

" -------

a'7- ;; " I Six .. . . . .. . ... . . -----------------

a is W 4, 13

1.

064

as,

1"

s

ii

,1nh. !

*

-- 1

7 3 3 .530

..... .. . . .

. . .. . . . . . .

... ... ... .

6

3

437

i

15.011

----------

----------

----------

29

Day . ..... So .:: Wye(. f.,ng.)- . -----::: :

; 1-)~ ---------

----- -

------

.

52

152

101

3 142

. . . . . . . .. .

H)

42

32

Do C010recill)

- -------

21 69

1 :

77 20 8

Lit

. . . ....

He

L.Mhmuk:---------- -

I

-------- ----- ------ 14 ---------- -------- 5-

37

99

1 525

3:784

. . . . . . . . . .

--------

4

ok

KS

,11.loorg~_ ::: ::: :: : :: :

wi

: ::: ::: : : : :

. . . . . . . . ..

1 103

92

4:

866

3

543

F

. . . . . . . . . .

07

3 1

Vale ----- -----

New

----------

Albary7ln- III* . ..... . 13

. . .. . . . . . . ii

2

o n

11

471

"311

. . . . . . . .a

-

m

Sealcl below 90

-- ---

S

I-Il,n- --

]

7 .

4 1' !

8.

2

S , b

:: -

So

fe

Manhattan . ---------- S as c beloww : : :: : : : : ?

3I --------

9

1 7

71

. . . . . . . . . .

. . . . . . . . . .

7

1

2 f

102

fl

. 692

6,751

. . . . . . . . . .

. . . . . . . . . .

525

70

BeI I ire. far -~-.rii i na w d- -0- -C-J) ------- -----

n

I

1

. .. . ... .

31 in

545

.. .. . . . .

--------- :

n

6

2. sons

135

' Six

2 :060

Is

10

1.377

718

Newark ---- ' )

do 'a.

~J.-rb

" . .-

::: : : : : : :

or ""' So-

. ------- -

b

S So

belo w

'.I. V

S

- F

3,

2 . . . . . . . . . .

- 1

.

I

--------

. . . . . . . . . . 6

187

164

,,1"92

262

1 - "474I

92

5

%

14I

no

Rich it --- D i r~ i."

Wilmington ------- : : : : : - : :

1~ 437 1,428 . . . . . . . .2

. .

92

a

3,978

1

. . . . . . . . . .

1

5

45

W- wal - ------------- --------------- 25 go IN is, no 1, in

Boi. . . .... . ld

Hot - - --------

------- - -------

3

17

66

11

32

1 55

565

. . . . . . . .. .

. . . . . . . .. .

. .. .. . .

23

Honolulu ----- -

Los Angeles . ... . . . . . . w ------

-

-

i?

bel

---- - - -:

. .. . .

I

. . . .. .. - ------

4

6

9

131

36

1,742

. . . . . . . . . . 5

o 1 1

Phoenix-- -------- A

PbnI.md_ ---------- on)

. .

run

----------

2 467

. . '

. . . . . . . . . . 1

1

9

59

0

4

1

1 . 632

4

35

. .

Ron. .

- ' do)

------

. . . . ~ !!.

- .

17 132

l

o

Sell S , L1.1h

Frarci- I

-

23 so

2

6

141

to 1

3 Gof :231 1

5

i l

I

U'l r)

.

-------- -------- -

Suit --------------- n . . . . . ..... . I- 7 3 5 35 1 .243 . . .. . . . .

B G

24

clifirm . . . . . . . . . . . 11himi . . . . . . . . . . . .

on

Texas. . .. . . . . . . . . .

23

3

42

15I

Totals to States not shown above

go3

A

19

2,55,

20

167

4,899

4', 6

58

12

12

1411

256

31179

"I17 9

1,897

589

9,351

SSG

25

"

1

: '133

IS 153 1: 521

948

9117

708 515

116

91
I

I

I

ANNUAL REPORT e STATISTICAL TABLE S

Table 14-Number of occupational tax stamps issued, covering fiscal year 1964, or portion thereof, by class *I tax and by

Internal revenue regions, districts, and Statet-Conflnua l

Hornell. Marihuana

Manufac.

Internal reverm . region., district., and Star. hinurs,

fin rt sT .7 .

Whole.

.1. Retail Pucti.

Dealers in

ustand Labon. Manu. Dealers,

Paidur.

on and Practi. labors .

(Suit .

Prevented by single districts indicated in coren.

fir ions

deal... deal . .. ti .a .u., gramur i torlins.fiactur . 33 14 rules

pound of fig lum.. $12 $3

;, ;

ons, etc ., $1 on, $24

1

.fi,, $2

4

(22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32)

thowee a.-, -I. ...... .. . . . . . . . --------- wo i'm ssm sakwist 3, M 412 1 7 1 a ZZ

southeast reasons .. . .. ... ..

--------------

I

----------

.

45

Te, 102

201

8 04

"a

1 0

m

3

1

--------

--------

------- -

--------

--------

---- 2

Dirsal . . . . . . . . . . . . . .. . ... .. . 12 967 3

10

3 --- ------- -

1kfii~lh C , .

if

.

Grom

. . .. . .1 1 2

13

652

069

2

:40 2

4 990

5

125

2

13

::: ::

I up, P ----- -------- ----- - ------- --------- -------- 1

I I

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

J:Ict F1oriid".)i_p

1

. .. . . . . . .

'

9

28

6D6

685

2

: 138

' '19

1 2

12

------- -

1

-------- -------- ----

Rest nnen6j : : : : : : : : : : : : i 32 111 4: 747 24 ---- _-_-

M-th

:z~ nalles,.. . .. . . .... .. . . . . . . . . . . . . .

A not----- ---------

7

--------- "5 I261 tm 'I 'I --- . . . . . . .

-

4

-------

M -

B. too ----- I wit . . . . . . 5 32 948 11,695 14 29 . .. ..... . Burlington

Hartford-- : : C.nmrA`1cuIj * -_ ------ : : : : --- -

2 99

58

61 9

5,781

.. ........

11

I

12

-::::::: : . . . . . . ... ....

. . . . . . .

4

.. ....

--------

N

Portsmouth . Now Hampshire)., . . . . .

Providence .. Rhode Island)--. . . . . . . .

1

1

3

7

1

3186 5

9

1,56885

2

33

1

Misfeasor Abord . . .. ....... .. ------_---- IS 172 s'agai 4LM Us so 2 2 2 25 1

(~1*11e~ )Ilmlaf~ 1buffins _

D -- -

---------

-

6

1

37

210

2,435

755

12:594

3

2

34

. . . . . . . .

is

.

_... ..

------ -

. . . .

------- -

-------

-- ---- -

--------

how . _ . . . . . _ --------

o . _ -- -

'e'" N rI1 1) n u _: : : ----

. .. . . ..

:: :

-------

21

3

1

ISS

79327 .......31

...

6

. . . . . . . .

.... ---

. . .....

------- -

. . . .

--

-------

5

--- I ---- --------

Nhlm1ikw :: : :: ::: ::::: W, , .l m ?:: 3

Orm.h. Nebraska Is - , - - I ------ - ------ - ----- - ------ - )

St. Lou"

1

121 1310

56 6

340

199

1

9Z2

4

51

4

`3

i

St . P

Spring"rilt'id . hS=`ib")be.)1;W) :

1

2

2193 .

72D6

5:560

3,220

6

25

3

6

central impleas . . . . __ . .. .... ... . . . . . .. . . . . . . . . . . .

Cincinnati, 1 1) l o

"

1 '11 '1 : 1'19 go5: 27 13

---- - ------- -

J~: ~it ) b w~ : : : : :: : : :

Cleveland.::::::::::::::

8 42 1 485 9 049 27

14 6 Defini----------

Indianapolis.:::::::::::: ~"if .d .

Lou clock

I'

. . . . . .

1

1

55

2

14'

~ :.

"IU8S

: 24.

13: '473

4.

311

i t

13

---

----

I

--------

---- ::: :

--------

----- -

------

I

in

PlulausimrS. .... ... .... . at ------ 9 379 2,053 .......

- -----

.... ------ - -------

liewthessini mlion . . ......... . . . . . . . . . . . . . _ --- ~ ::

Afts" ", 9 . . . ------- (New Morsipi .. .

. . . . . . . .4 wat

3

T .m

2"

S% m

1 151 4

.. .. ...

---

. . . . . . . .

--------

. . .. ... .

--------

. . . . . . : .

--------

i

Ain'.n -

below) 28 142

11

7

:512 17 4

-

--- -------- -

C . . .. me 1)~

.

Dallas--.: ::::::: .:. .. . .

youni

n

be par

3

34

133

,

429

61644

-------

16- ------ F --- --------

.......

--------

0. . ..r

c1lorad

. . . . . . 24 68 7

1 1

3 694 7 2

ouisiana

.

.. . .

Little 6 Alkinva

New Orkaom,,_ .--------- .. .. ...

5

il

59 7

02

4

1

2

087

:9o

6

3

1

5

Oklahoma City .. . . ------- Oklithrim ----- -

.

. ... ...

wi,bit . .. ... ......... . .

furnow)

. . . . . . . . .

1

l

6

$5 9

644

3

.333

2,914

13 2

k fion . ... .. . .. . . . . . . . . . . . . . . . . .

"`7 v '"m 41'

g~y!! in g

Al

w :

S

6 26

: R1

431

163

14:866

11

112

6

11

--------

--------

--- -- -

--------

--------

--------

- Buffillp . . . l -

Mannttar . :: : :::::::::: her SPar ct b.I'ow* ----------

2

a

1

3

31

1 :23 5

858

1,8:102

441

228

195 3111 _-- I ----- i :::::: : -4 ------ - MWAti~ti, inglave . .. .. . . . . . . _ --- ___ . . .. . ..

Balfirmo-. .. . ~N wr1 nd 1m1 1 .C.! _

IS

3

no

21

7 .m

1

a, we

7,11

29 2

5 "10

1

_ -----

. . . . . . .

--------

. ... . ...

: j. . . : :: : --- 73 ' 4

Newark

d,l

PI Zb '

pb -----

10

19I

8

2

41

9

:

2 .54 9241

1,254

11 037

3 07

991

11

31

58

0

3 2

35

8

.. ......

------- ----

------- -

4

-------

4

. firre

'it .. . D airi .)_ . . . . .. ... . ..

-------------

5

----

ID

2

9

112

30

, 166

664

184

4 I3 --- -------- ------ ------ -

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

AI 11,I)

- '

IS

-

W

1

I' M

42

53 an ----- -a

' '

------a

.

..... .1 . . . . . .1

: :::::: : . . . . . . .

.

J

8.1 . . . .... . ld:h.) _ : : : : : :: ::::::

Hot - - ------------ .. . . fiffintirii). . . . . . . . . .. . ..

: : : : : : : : :

. . -------

2

4

2

23684

94 6

994

1

1

i

1

------:: . . . . . . : : ------- --- -

Honolulu --------------- ~ Howell). . .. . . . . .. ... ...

I" An

. . . . . . . . . .

11

a

98

94

1,111

934

21 131

22 1

1 2

Portland.. ... 1

---------

-

2

9

17

46 6

5%

:

2

.

3,527

......... .

7 3 ------- ------- -------

. . . . . . ,

.

---

1

~

R- an --------

. . . . . . . . . 5

14 2

293

51 8

1

1

2

-----

-

2

--------

------ -

------- -

------ -

-------- ---

------ - San Fram,= 36

I

$71

I

5 350 :

1 7 19 i j 3 j

Seattle. . . . ......... .. . . liffishington) . . 27

1 :

036 4,997 3 5 __ . . . . . . . . . . . . . : ------ -------- _-_

------------- . . . . . . . . . . . . .

c law

d)

Oil

Pon ------- .

7-21yam --------

92

Tot.In to, State, not show . above

12

a

13

202

43 155 :11

2: 21,04

32:798

948

17

: '

15

904

4215:171 .1,

'

: 069

14 156

134

56

7'3

so

62

4' 59

592

54

68

33

4' 21

59

27

435

'I

ANNUAL REPORT or STATISTICAL TABLE S

Table 14-Number of occupational tax,starrips Issued, covering fiscal year 1964, or portion thereof, by class of tax and by

Internist revenue regions, districts, and States-Continued

National Firearms Act Coln uhl ad.9-ted devices. billiard,

Imsoling .11in, promises

Adul.

bunted,

Internal revenue a9knus, districts, and States Manufacturers or Dealers 8111lud a, processor

(States represented by single districts Indicated In

Imp here

Pam .

brokers

other thin

pawn .

Do.,

an

pool room

and bovel.

Amossurent

devia

Count n

device'

renovated

buffer .

Waur?s ,

:rthowns par ; totals for other States shown at bottom

Claw 3

broker,, C less 5 : his 41firy promises

'

a, proralwat and filled

his) Cie.

SWI

Class 2 .

$25

$300

Cie. 1.

$200

0

31 pumburs .

:,

$10 r,. ,

day $2 P 1250 o. r he..

r

b

(33) (34) (35) (36) (37) (38) (39) (40) (41) (42 )

United a..- beirml_------ ---------_- its 9 2 94 0, we 227, Us as, an 0 7, a "

Sawthes- real ses . .. . . . . . . . . . .. . .

--- ----------

2

as

as m

JA"I.1, a)-

-------

-- . . . . . . . 1 1.

333

3 :52 4

1 970

58 1

----

--------- -

1

453

Columbia South CrWf

i

4

W

2

E'

36

Gresumbam --- ~1.curlh li n

Jackson . . . . .

. histor ppl) ------------ : : : : : : : :

-------- --------

_ ----- _

----

.. ..: . . . . . 6

2 2 4

9

I ll

2 :988 985 ... ... . . . .

1 9

99

Jiucklum,11W .- 91culd.) ---- ---------

Nashville- .- . . : : : : : :: --

. . . . . . . .

--------

.. ...

------ .. .. . . . . . .

7

6

755

586

6

,:137

084 2,0'29 . .. ... . 18.

154

39

revetheaver -1 eve -------------------------------- 63 &. M

217

32. we

1 41

n o

6

.. ... ... I

------- -

0o'p

.r . : : : : : : : : :: suall I . ... ... . . . . . . 7

36 .

4:

671

200 0

He, ford no 2100

646

468

3,386

. . . . . . . . . .

35

..

. . .. .

Portsmouth-_ ------ (Now Hampshire) ------ . . . . . . .. . . . . .

-

... .. . . . . 113 M

12

.. ... .... . 246

Provider- . . ------ (Rhode --- -------- ----- ---- ----

11 1,

451 . . . . . . . . . . . . ... ..... i s

Man- -1 eve -------_- . . . . . . . . . . . . . . . . .. ...

Abortion. luit.)

"

-------- -

------- .. ... .. . . . ZZ w36e M1,69-5 "

a

n

319

n

1 9

b

. of

---------- 21 268

:61

13 792

4:981

178

3

a

I t . . . .. ...

Fargo . -------------- - -----

-

N

a to,

376

1 317 11

. . .

. ... .

l

l

Mileatil,.. . .. . . . . . . ..

o.'str

V

W

2

3

3"

1

5:498 . . . . . . . . . . 1 10

o

Omaha . . b sk

.

Z'

. Is

. . . .

S

Stt. Paul . . . . Minn

- -----

2I

.. . .. . . . .

.. . . . . .

773

1

402

3,039

9 62 5 0

2"

1 2

47 4

48

. . . . . ... ..

. . . . . ... ..

. . . . . .. . .

39

151

Springfield . .. . . . . --- So. (b) below, .. .. . . . . . . .. . I

1

291 B. 294 307

j S6

casatim, nown

------j-----------------

211 sti'm " '" a - "a

14 1. m

ChicimgtJ . : : : : : : : :::

Cleveland . . .. .. . ~S ~dI% d~ bNkw~: ::: : ------F 37 2,16696

:940

115,351

SS9

231

10

1

14 1

54

Detroit . . . ii:--- In 2 1 --- 1 14 11 1 7 7

Indiaminhil

..

1

7 1 :

005

:3N

6

1,31 2 . . . . . . . .

54

Lcutwilt. ... .. ... ... . Kentucky) . . . -

Parkersburg . . ... --- Wait VI,gI;f;;. : : : : - . . .

... ...

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

2

.. ....

-------- - 699

527 41 "' :107

11 : 7

3111 --------

17 1

26

9

liaefthwent Fave . . .. ... ------------------- 2 2

17

"M '"s ", so

Albuqu;7quo"

"'7)

Austin . . . ..

. Navy

M"")

.. . . . . . .

. ... .

. .. . . . . .

.

. .

.

2

. . . . . . . . .. 1, 414196 964

6

2212

2

. . . . . . . 1265

D belon,) w- 0

Sa n

:''

13 8

Gn

1,03 6 . . . . . . . . . .

9

11

D .,

Little Rol-------- Ak-'o.nr --------- -

----

---------- .... . . -------- F

509

366 2:764 824 2

-------- -

1 2

New Orlear- . . . . . . .

uhuhum)

------------ ...... - -------- 9 S44 1 71 2, 1"

. . . . . . .

4 2 Oklahoma City

fiffirma

.)

------ 4 469

:518 196 . . . . . . _ : :

too

...

. I . .. .

Nil . . ...... :: : :: : : K. . . . .. .. . _ 1 9S3 3.866 452 _ . . . . . . . . 4

Atli is 7 c b

n - -------- - I -------

--- . . . . .. .1

. .

303

2~

..

.4 : IN'

a

fr rSo . ci 1

.k below[4 2

'

1 IS ---------- --------- -

So . b

----------

: S c

fivw

c belo

w

Manhattan --- ------- So

F

7 1

1, 104

319

9 :

3 3 22

. 987

.. ......2 .

.

4

14 15 9 2511 all

k `D T

NMrk r, ) -----------

I

-------

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

. . . . . .

7

3

3

. . . . . ...

1

421

' 740

170.

42 3

5 1

7 9

b:r 13

P

Jfit~h,j me

hil.,

i . . - -

I

-------- -------- ---------- 1

i 2 . 7

56

1 ,

23

...

Pjt1b" ----- em b.lp . : : : : : . .

R hrm'~`d`: _ rfinfi.).. . . . . . . . .

.. . .. . . .

I

I

. . . .. ...

. . . . . . . 1

2

44 1,382

9DO

9

111 1

4 .,111

52

74 1

4172

... . 26

3

Wilmington . ------- (Do , assi 4

'"Aws' - -----------------------

. . . . . . .

. . . . ~ . . . . . . .

.

.

.

10

1 60

. ITZ

go, m

5'sw 5

A

---- A1: h e !

----------

Sit 61, 122 .......... 16

fit

Won . .. . . . . . 4) ~ ------- _-_ ---------

258

03

1 :609

25

... ...

J 7

Honolulu . I

L

Los An""- --- - --------- 4 ... .F

: :

: : : : : : : :

--- . . . H . . . .. .. .. F

1 .

1

99

402

" 1 8, 98" 23 -------

-

ph. . . i .. . . . . Art...). . . . . . . . . . . . . . I .. . .... . . . . I . ... .. . . . . 265 2,343 265 .... ......

Its ~Qg%) O )

Silt Lake City._._

. . . . . . . . . .

.

. 5 .

-

1

51 6

78

182

3,140

1 . D47

1 274

86 8

:.504

. .. . ... ... 2

San Frand. ps . . . . . . . . . . . . . . . . . I M

I

, Sit : ,

13 . . . . . . . .

Seattle_ ------- __ Washingtok ........ . - . . . . . . . . . . . . . . . . . 2 587 4,61115 907 . . . . . . . . . .

O

Wilfrid------------

Illinois -------------

New York. . .... .

f) Taxes. ..... ... .. . . .

4

21

Total for States not shown above

----------

i

10

6

I3: 255, "

3:335

2:

138

1 031

1122;071

76

'3 ' 17:291

2121:964

009

483652

920

1 .33289

2

3

I2

12I

9

I3

3

2

61

122

66

113 95

333 134

93
Amount in dispute Amount approved P ..of .,ad or -..,ad

Number

Basis of closing D"'I'"I 0"" Deficiency Deficiency Over.

ad inerafty and pamilty payment ad penalty Payment

01 ,

(1) (2) (3) (4) (5) (6) (7)

(thousand dollars)

Total ... . . . . . . . --------- ----------- 6,160 . 382,359 84.658 132,471 8,581 34.7 89. 9

Dismissed -_----------------_-------- 1 '*~ 2,847 4 2 642 2.8 29. 0 Decision on morits ----- 867 714 . .3 12.1 94. 3

9 1

24:944

331

Agreed settlement...... ... ---- 4,947 34 : 7" 76,9 7'619!1 1. 7 . V . 11.1 90. 4

ANNUAL REPORT gir STATISTICAL TABLE S

Table I S.-App*llat* Division receipts and dispositions of protested income, profits, Coate, and gift tax causes prior to Issuance

of statutory notice of deficiency (pre-90-day cases)

A . Progress; of work

94

Status

Pending July I . . . . . . . .. . . . . .

"lived --- * ------------------------------------------- . . . . . . . .. -------

isposed of, total ---------------------------------------------

BY .Irrunrivit. . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . ----------_------------

Urrugir.ed overassessiments and claim

By I - ---------

...... of statutory raffer_trareffir to itaiii

; . . . . . . . .. -------

Pending Jan. 30--.-... ... ... ... . . .. . ... .. . . . . .. . ... ...... .

Method

Disposed of, total .. . . . . . . . .. . .. ... ... . .. . .. . . __ ----------_-------------

By . . . . . . . . . . . . . .. . .. . .. ... . . I .,............. ... . ------ -- Unigreed maossexament, and claim elections. ... ......... ... . .. . .. . .. . . . . .

By Issuance of statutory notice-transfe-d to Wiley letus . . . . ... ... . .. . .. . .

status

=July I . . . . . . . . . . . .. . . . . . . . . . . . . . . . ------------------- _ ------ I total-------------------------- -------- I ------------- . .. . . . . . . . . . .

SuSalutary notion issued r by Appellate Division '__. --------- tory notices issued by district directors and received dorms 90-day paiWi"

Disposed of, . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ____ . . . . .

ByB agrescrect .. . .. . . .. .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Byy =*vt. :o'u"_i_,,, the T. -:ZiiiiiWit~ WjWj ---------------

. . . .

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

Pending Jun. 3Q. . . ..... . . .. . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . - .1 . . . . . . . . .

Method

Disposed of, total . .... . .. ... ... ....... ........ ........ ... . .. . .. . . . . . . . . . . . . . .

By U.-mi'Ind pe ' By Petition to the Tax

Number of canums,

(1 )

(1)

653 "'.21 :494

18,61 6

14 199 '459 3 .96 8

15,53 1

B. Results obtained In disposition s

Numb., at a..

18,616

14,189 459

3,968

Table 16 .-Appellate Division receipts and disposition of protested Income porlits Coate and gift tax cam In which staftoo ry

notices of deficiency were outstanding casso),

A . Prog" of work

Number of ain

1 159 4 :37 7

3 785 '59 2

-4,TZ6

953 to

1 : 028,

1,390

B . Results obtained in disposition s

Number of cases

4,146

953 165

2: 028

D .fichmq 1. tax

(2)

836 261 944 : 744

596,912

415,071221

181,719

Penalty

(3)

42 048 25:35 1

29.554

19,279

24

10,251

Aniaimt .t .trul Iii-ser-svit'-port(ttaximarrid dollars)

, I

1,094,093

Defill.rcy In far

(2)

328,100

141 .555

4 5

106,500

Amount stated in statutory notice (thousand dollars )

Deficiency in tax

(2)

Appellate determination (theirsand dollars )

21452:213 170

998 17:215

194,934

41 299 545

1 2267:090

71,449

Penalty

(3 )

Penalty

(3 )

Appellate datemnination (thousand dollars )

Deficiency in le.

(2)

194, L35

31,200 2

12'7: 0'90'

Penalty

(3)

37,945

14,354

1,013

~670

4 366 8:01 6

7,67

337'

9, 5n

297 679

1:562

2,94 4

9,472

231 679

1:562

" Overrefinement

0)

(4)

12559,,471 265

22,41"

85,799

5,123 1,522

192,292

Dwareamosymot

(4)

95.493

91 414

956

1 :072

D-sx-tatt

(4)

ovenexami

266

992

.966 - 16

97 1

148 19 628

27 7

1 Difference train table 15--transterred to WeirItuffirs-il .. .it by ..a being combined of split for the purpose of issuing the statutory notice, casurt in transit, at..

1 . 02 1

197 196 628

ANNUAL REPORT ee STATISTICAL TABLES

Table 17-Appellate, Division receipts and dispositions of Income, pwAts, Coate, and gift tax cases petitioned to the Tax

Court (docketed cases)

A. Progress of work

-I- the S50D.

status

Pending July I . . . . . . . . . . . . . . -------------------- -------------_------_---

Received . totil_ ------------------- __ ---------------- ... ... .. . .. . . . . ... ..

Petifin a filed in response toDistrict ifirectors'ostulary, notices .. . .---- .. . . . . . . . . . . . . . . . . . . . . . . . . . ..

Appellate Division's statutory notices I. . . . . . . . . . . . . . .. . . . . . . . . . . ---

Disposed of. total. -------------------_------ .................... .. . .. . ----

By stipulated agreement---------------------------------------- By di the Tax Court or taxpayer defaul r. t

T ad before A Tax Court on the media ----_-------------- --------- - :

Pending June 3D. ----- _ -------- _ ---------- --------- ------------------- _

3 Di"mencer from tibia 16-transfirred to docketed stous-is caused by excluding district directors' .1st.bily notice. considered by Appellate in 9Dd.y star. ., ...a in transit, at, .

Method

Disposed of . total------ ___ -------------------------------------------------

By stipulated Agreement.----- ........ . ------------------------ ------- 1 By dismissal b~.Ilr. To. Cmilirir taxpayer default. Tried before , . .. . .. . .. . .. . . . Tax Court an the marlio 1 ...... ... ... .. . ... .. . ..

I Represents amounts petitioned. Results as to decisions fendwed by Tax Court timing the year - shown In table 19 .

statu s

1 For analysis of disposals, are table 19 .

B . Results obtained In disposition s

Ps ding July 1-

FN.d ii, up ..W. . .. . . . . . . . . ---------- ------------------------------------ ....

'1' ------------------::: ------------

Nuoilertilessiv.

Number of a. $

(1)

6.265

Appellate determination (thous a

Deficiency In is .

(2)

194.078

Penalty

(3)

11,682

Table I 8-011fice of Chief Counsel Pi counting of income, pricifits, estate, and gift tax cases In the Tax Court

Numb., if caun

(1)

Table 19-01fice of Chief Counsel-Reoults obtained in income, profits, Coate, and gift tax cans disposed of In the Tax Court

631

'5:61 4

76 1: 847'

6.265

5,002 328 935

7. 98D

5,002

f1ij

935

9 948 :690

1 160 9:478

Dexificiery in is .

(2)

To.

(2)

Amount petitioned (thousand dollars )

52 04 39 4207

254 429 124:99 1

487.159

396 722 95:193 254

944,308

95 22 7

3:59 7

95.254

W 489 377: Z28 357 400 949:31 6

Deficient

Penalty

(3)

Penalty

(3)

94 681 29:366

22 274 7:092

28,339

22 MR9 '626 4,824

95.708

6 441

' 41 7

4,92 4

1 96 930 30: M

24 959 D2:866

C-sawearm.nt

(4)

nd dollars)

Amount in dispute (thousand dollars )

0-assm-ent

(4)

overpaymen t

(4)

9 394 1:11 5

457 GU

9 .394

2,848 5.5423

2,105

16,4811

10,943

2

5,543

141 421 22 236 94:658 79, NO

95
1i ANNUAL REPORT ar STATISTICAL TABLES

Table 20-OFFIce of Chief Counsel-Receipt and disposal of Tax Court Cases In courts of appeals and in Supreme Cour

In courts of appeals In Supreme Co urt

Amountin dispute

th

Amount aplroved Amount In dispute Amount an ad

status Number

ousand dollars)

( (thousand after&)

Number

(thousaind dollars) (thousand .Plars)

at " . as

D.1111has N.,. Datfiff.ncy Ove '

.

Orn. Deficiency Orand

P ,

ym .a and

p

aliment and

p

system

,

and payment

Is

...ity

~

p

...Ity

~

Penalty fl y

(2) (3) (4) (5) (6) (7) (8) (9)

Pending July 1, total... _........... ...... ... 593 = 738

. ... . .. ...

3 496 . . . . . . . . . . . . . . . . . . . .

AP1111po. by Par 1d by --------- . r.. 155 3,174 .. . . . . . --- --------- -

' IL ' 'E

211 3

_ --- 19

6

Appealed by both . . ... . . . . . . . . . . . 27 7, R 6

5

30 -- ---------- ---------- ----- -

printed, tol ---------------------- 349 375 142 . . . . . . . . . . . .. . 6 13 8

By Commission. ... . . . . . . . . . . . . . . . . . "- 73 6 .932 23 -------- 6 138 C -- - : :

a y

By both Lisp ayers-_- . . . . . . . . . . . . . . . . . . . . . . . -- --- . . . . . . . -. . .

270

6

23 . W 9

7,735

116

3

--------- -

------- .. .._. . - -

. . . . . . -- -

. . . . . . .

---- --- --------

- -

Isposed of, total. . . . . . . . . . . . . . . . . . . . . . . . . . . 512 26.222 596 16,130 20 3 496 ---------- 4 %

Favorable to Commissioner . . . . . . . . . . . . . . . . 223 15, 446 519 15 353 9 3 4% . . . . .. . .. . 496

Favorable to reality . . . . . . . . . . . . . . . . . . .

Modified. . . .. .. ........... ... .. . ..

9 2

2 7

6,144

1,660

75

. . . . . . . . . .

--- -

612

1 2

.. . .. . .. . .

. . . . . . . . -

. . . . . . . .

---------- ---------- --------- -

Set led.. ... ..... ... ... .. . . . . .. . .. .

5

480 -------- _ 165 . . . . . . . . . .

. .

. . . . . . . . . .

.........

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

Dismissed . . . .. ... .... .. . ... .. _. . ... .. . 165 2.491 3 . . . .. . . . . . . . . . . . . . . . . . . . . --- ------- --

.

---------- --- -

ending June 3D, total . . . . __ . .. 43

0

43,872 283 .. ... . . . . . . . . . . . . . 6 1 Ii -- -

Appealed b , l~

; 5

F

4 505

6

22 6 138

y t

A pan ad 4

~ifyiihi .... ..

Annealed by hot ----- .. . .. . .. . .. . . . . ..

4

1

2

363 4

12

29:423

7,944

252

9 ---

:: ~

-

. . .. ... ..

---------- -------- -

P

-Low than $500.

Table 21-Office of Chief Counsel-Floceigand disposal OF suits filed by taxpayers in Federal courts and actions by the United

to For recovery of strontious reFunds

otal

Refund alcohol "" 0 " . t.b..ou.nd Ifibra" n

arms in... ) I

Perpetuation

" "U= ad us g und status action.

Courto f

claim.

Dist Ict

'=ts

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

Pending Ju

I

yl :

Cases. .number

- - . . .

14

1 ' 4 2 4 7 2'

. Amou"t In dispute. . . . . . .. . .. ... . .. .

Received ;

it dollar. : : 401 : 909 233, 1D 11 1 :2.2 12 1, 4V

Ca.... . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

. . . . . . . . . . . . . . . . . . . . . . number . $1 4

1 ' 3

l 12 10 1

0

:

N Aancm'~ft ad In dispute- -......

1 'Pa ., . :

... .

.............. ...thousand dollars . 126 505 : 61,517

A :

400 33 485

C .

. I. . . . . . . . . . . . . . . . . . . . 1 618

1 60

1,437 1 1 Amount In dispute. . ..---- -

R

at it dollar. :

unded :

137:033 77, 736

5

9,087 --------- -

Amount --- ----_--_-----_ _ .. . .. ... . . . . . . . . . . . . . . . thousand dollars . . 45 058 22 29 22 429

F- atolganatuaddisp-def . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 31. U

2 0

. 11 A 96

----------- -

d j ---------- -

Fair Its unit C :

. --------------

. ..be,

..a ---- . - --- ----------- -- _ ' "' ' ' 1 4'

41 2.652 6 24 Amount In dispute . . . . . . . . . . . _ . - thau m nd dalliers :] 391 :2816 ,

21 959 172,575 45 1,702

I The n

" " '" 'it

111 11 number of cart., In which decisions were rendered b

1

tipal .f.s .

U and' 'flin . raltifitild"I"m tirttriall!",.*

'pt I Itheig".iri dwam to sartfleareant by

1

difus,

im

firm of tax, etc

. In the ourt these courts dial

.1

in 11 1111"1111110111"neut,.itf 7 pull,for and pittlys

Fla C of Cliflins, the number a decisions was 36, 1

. are far

IS - I a

the Basethe district courts 4 52 decisions war. tend . .. it, of which Z27 were for the Govern .

go

against the Government. and 45 partly for and part yInst the Gov rnment

.

against the Government. For decisions by the mutts of appeals and Supreme Court, see table 22 .

96

ANNUAL REPORT 9 STATISTICAL TABLES

Table 22-Office of Chief Counsel-Decisions OF courts of

appeals and Supreme Court in civil tax cases

Partly to

Far the A lost

T

ad car

fly

Court

total Ga, .rn

insint '

Go,h.... trihimt

ment Gov ...

anvint

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

Total------------------- 524 348 139 37

By courts of appeals . total . 520 344 139 37

Originally tried in

Tax Court . . -- 372 251 93 28

District mWi. : :::::::

Jag

93 46

9

By Supreme Court, total . 4 4 ---------- --------- -

Origimil.1fCarfed in-

. d

--- ------- - - - ------- -

. . . . . . .. . .

District courts - --------

Y

3 ----------

coundcl.im.. .----- I I . . . . . . ..... . . . .

a Note-Eincept for Supreme Court mass, the uses covared by tables 24 and 25

r.

an,

included.

Table 23-01fics, of Chief Counsel-Rocelpt and disposal

of collodion, Injunction, summons, and disclosure case s

status

I "WhithIlly

R:

pan ----

Total . . . ......... .... .. . . . . . . . . . . . . . .. . . . . . . . . . .

Disposed of --------------------------------------------

Pending June 30... ... ... .. . . . . . . . . . . . . . . . . . . . . . .

Number of .a

1:

46

2 045

3,512

903

:704

.. Note.-This table includes cases handled at national and regional fiewhi; which

. urid., consideration to, suitor are I, suit In Federal and Statecourts. ]fit. .

not Include cases Matins to 1110hol,to bacco, and firearms taxes nor to insolvency

ind debtor proceedings (table 24), a r appeal and other man 'i ;hich are included

in table 25

.

Table lik-OfAce OF Chief Counse"eceirt and I disposal

of insolvency and debtor process Inge

statu s

Paid! July

I

.

Recalls

10181 ---------------

D~rgd*isasd of- -

ng

Total

(1 )

23:3079

28

5,417

3:33

2 070,

"ita'" ,

proceedings

(2)

1 :170

GOIS

2.77 6

if A.

Bettina, u

.7 s

Reminnishii;

precatedings

(3)

1 .2494

1 0

1 694

1,095

599

Miscellaneous

in .1 . .

rocatedin...

(4) "

425

51 2

937

51

427

m~01nxxwxU 'y A.. ;:.i nstlt.,~,,,d

under """ _1U,*,",,rX

If 1 11"

. 77

road rm:.ni`.b ..

itin'), taini'mine it indebtedness), X

I I

is Xill 1 . n ragre (nail property

plans), which inW, a is . .1inim, ad

halt interests of the United Stites .

.Ban rurg licluidation proceeding, ad Federal a, Side receivership pro .

.clinger .16.is involve tax claims at t a United States.

far prome th sh~I .,Irsldmz to corporate dissolutions, imm vent banksr1ran at .

,.ban creditors, of administntionclestituo~demd.nts,

,h

Us 'let involve

..

of the United States.

Note.-Includes uses handled at rutional and regional levels .

Table 25-Office of Chief Counstel--Racelpt and disposal

of miscellaneous court cases, lien cases not in court, noncourt collection litigation cases, and appeal ccurars

status

'mal fiscal.

bananas

court

Lien

Class

hat In

No...u, t

collectionlitigation

Appeal

I

court - a m

(2) (2) (3) (4)

R an

. ..::: -----

1 283

6:614

293

779 2, 1 ED 3,730653

175

289

Total. . .. ... .. . . 7,997 1,072 2,293 4 068 464

Disposed of.

Pending I 72

347 2' 118067

~3,641 8

so

r=S7

7

Includes suits for tirecleamit by U finr.,mill!fiffinew or other secured creditors . and imitsiniqpItittill.to .hiclith. t State, is ad. is part

: NP'l .:IiIYY applications far discharge of goperty from tax firms.

if memorandums on collection Itigation matters train regional counsel

to district directors which aye not related to =off proceedings or lien man .

Includes cauft In Federal and Star In 11, . spatial cou,

.

.let .1 to in . =.a debtor procesc nit, an cases In court, and 21ectlant, sprourams, imill tion

Note-Includes cams handled at national and regional levels.

Table 26-Office of Chief Counsel--Cmeload report

Activity

Pendin g

July

I

(1)

Receipts

(2)

Disposal ,

(3)

Phdl;l

Ju he

(4 )

Total . . . . . . . . .... .. . .. . . 22.434 27,637 28, 766 21,305

Administration .. --------------- 102 245 144 203

Alcohol and Tabs= Tax. ------ 463 4,982 4,770 55

National Office .- . . . . . . . _

Field. . . . . . . . . .. .. . . . . . . . .

, 92

371

1 lis

3:76

1,06 3, 9

701

139

436

Collection Utigation . . .__. . . 4,929 5,054

National Offic. .. . . . . . . . . . . .

field. . . . . . --------------

59 5

4.234

$6 7

11.236 101:715226

306

4,748

Erforcium art.... ..... . . . . . . . . . . 2r956 1 .493 2,345 2,104

National

Field. . .

------

1 1

2,876 07 2,253 2,030

nterprirtaftse Division --_--_ 202 755 2

pint _rritt.. Division--------

89

592 579 102

Refund Litigation Division

--- ---

3,249

1 .514 1,618 3,145

Tax Court I .. ... .... . . . . . . . . . . .

10, Me

6,047 6,677 9,91 4

National Off ce .. . . . . . . . . . . .

Field. . . . . . .... . . . . . . . . . . .

9,948 59 6

355

5,692 6,162 '1 5 1,1311 ".

I Nordocksted casse not Included .

9 7

q
q

ANNUAL REPORT 9 STATISTICAL TABLES

Table 27-0bliscations Incurred by the Internof Revenue Service

ll .th-rd,ofdOllan)

Penn, W Total compensation

"" Equipment In.,

In terns I revenue office, district . or region and th-lits

(1) (2) (3) (4) ;.,(5)

A. national Office and regional totals (including district directors' offices and service

-

centers)

Total Internal R.. . ... Service -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 549,692 479.055 17,272 12,060 -41 .305

National Offire'. . . . . ------------------------------------ . . . . . . . . . . .

-----------

34 920 2 118 5,881 21,290

iouth

::11 4 :309 48:575 2 : 230 529 2 ,97 5.

4.rth

re

d t

49 3

,1

29 413

1 "

277

1

9 7 0 ~Ii vms region --- .. ... ... .. . ... .. . . . . . .. . .. . .. . .

~* ,tgl ------------------------------------ : ---------------------------

7 :069

CO 462

: 0,9

65

55

1

2, .5 5

' '

949

793

~ 9

2

a L : . 95 2 we -

. . ... . . . . . .. . .. . .. . _ ------------------- ----------

: 7

49 71 757 2 141 : 975 1, ffing 4.w Yorkjolion. . .._---------_-----------

2 011 8 M

SIB 964 1 3

1 1

qid-Atlan ic nqiioq .___.. .. . .. . .. ... .

N t :: ::: :

:3 2: I S 1 599 714 3

"

: ex ern real n ---------------------------- ----------------------- -

I.Iii .rual counsel . ... ... .. . .. . ... .. . ...... ... ... __.. .. . . . . . . . . . . . . . . . . . 8'U

64 21 2

7: 297

2 :29 7

164 894

63

3,60 1

78 9

t3miona inspection- f I f

t b~'~A----- ---------------------------- -

69

1

n orm 5 6S4 866 a 16 7 m o a

ion . un. .. . . .. . ... _ ---------------- - - 4:525 4: 211 226 16 7 2

3 . Regional cummissionon' offican (excluding district directors' offices and servic e

centers )

;outh ::,t ~:&n --------------------- ------------- -

-- ------------------ ---

9 670 7 937 508 106 12

I .rth ,t ,

ion . . ----- ... ... ... . -- - - - -------------

3

:908 3:509 125 35 94? didwest reVom. ... ... ... .......... .. ... .. ... ... ...... .. . _ ------------------- -

?m .ha (Mi . wast region), . ..... ... _ ---- ___...... . . .. ___ . . . . . . . . .

6 97 1 9

:830

6

041

1 :584

24 7

169 145

. . .

-

-- -----

546

79 -1 .1 a, . .. . ...

. -------_-_--------------- .. . ----

943

9

8 936 333 220 554

h,

;out met r%lon . . . ... . ..... .... __. ..... . .. . ... .

)..he Csu

** '

4, 992

45

35

4: 6 214 94 329 si

ft . York re on !! . ----------------------------- --- - . - . . . . . . . . . _ . . . . . . . . . _

2

6,664

.21

6 1312

12151

----------- &6- 3618

Ald-AtIntic region V. .. .. . .. . ... .. . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 9,991 8,713 316 M 760

"lion . . . . . . . . . . .. . .. ... . .. . . . . . .. ... . ... .. . .. . .. . . . . . . . . . -------- 7,441 6 .633 275 193 349

Regional costs undistributed

1

289

. t

Aldwast region . . . . . . ----------------- -- ... . .. . .. ..... . . . ... . . . .

141

194 . . . . . . . .

14 1

; 84

.ntral region -------------------------- . . . .. . .. ... .. .

------------------ 236 ----- -------- Z36 V)

----------

=`Y-o at 41"N ------------------------------- ---------------------------- ---------- -----

278

121

------------- -

-

2

12S 2 '5

Ald-Atlnli~ region. . . . . . . . . . . . . .. . .. . . . . ----------_------ .. ...

.

17

1

177 .

4SO -------------- 37,

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

1. District dimcionre'officars and servIce canto n

outheast:

Atl. .t . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . . .. ..... ... ... _ --------- 5 866 5 431 210 70 155

-------------------------------------------------------------

-

lic",

4

:077 3 :792

1

23

ILS

Gr.. . .

807

': 403 25 95l :61 2

105

2"

1 8

44

71

153 1:ekson_ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 2 468 2 271

1

14 15 64

J

R.c Monvill.. . . . . . . . . . . . . __ ------- - . ...

:

9 932

284

3

9 1: 08

4 848

410

176

95

77

319

Ch. :: : :: : :. . .. . .. . . .... --------------- 1 85

orth .. . t':

7:512

e,

21

1

7 so 794

Au 'usts ---- ------- _ ---------------------------------- . ... .. . .. . .. . .. . . 1,785

Gas 67 1 1%at . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . __ -----------------_------- 11,031 to 471 187 83 290 Burlington- 5113 949 38 9 27

He rtwd

. .

H

Portsmouth . . . . . . . . . . . . . . . . . . . . . . . . . . ------------------------- ---

B,f7

9

264 51 :97 0

ISI

128

37

3 5

10

146

36

Pravidenc, . .. . . . . . . . . . . . . . ------- __ -----------------_--_------ 2:

1 T

24 21 S.

Law

Idwastn".c. Service Cant . . .. . . . . . . ------------------------------ - -------

5, 85 3 961 :

1, 1, 1. 1 3

5

Ab.rdeen. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . ------ ---------------

' "'

1,245 as 51 30

C

ohic 18:946 17 92 0

:

228 281 517

ox

M

4,02 1 1

24

'

4 46 0

13 1

1

fl

y

76

64

7

109

3 MI '

:

6 662 :216 181

11 0 1 5

0 . h. . . ....... ... .. . . . . . . . . . . . . . ----------------------------- ... ... ...

an

3,015 2

"

2 "a17 86

Springfield... .. . .. . . . . . . . . .

St. Le 1-_... .. .. . .. . . .

17 leg :211

:

4 87

6

6 631

208

208

5 9

153

125

197

Ker .

at Paul --------- It---------------------------- .. .. . .. . . . . . . . . -.

1,92 6 5

.197

1

:71 3

878-

1

7

1'74

1*1

427

antKan"s City Senice Center -. . . . . . . . . .. . .. . .. ... ... .. . 5,495 1 562 : 19 At 873

!

7 .387

G V

174 114

1

54

C .. land 52

11

, a 1O:

270

So 246

Detroit . . . ... .. . . . . . . . . . . . .

Indianapolis _. . . . . . . . . . . ... . .

1 : 8

7 .65285

1,3:7220

24

330

216 IN'

355

155

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

Parkersburg_

4,76438

11149

4:4 1 4

2 7

3

1.135

12..4

29

4

'

2

3

112

S

88

172

N

in

C

Sao foomotes at and of table.

98

ANNUAL REPORT fix STATISTICAL TABLES

Table 27-0bligation's incurred by the Internal Revenue Service-Continue d

[in thousands of dollars l

I ntemal -an.. scale, district, or .If.

Total

(1)

Personne l

compensetio n

and be fits

(2)

Travel

(3)

Equipmen t

(4)

Othe r

(5)

D. District directors' offices and service conte-Cortinuad

Southwest:

Albu qu .. . .... . __ ------------- . . . . . .. ... ..... ...... .. . . . . . . . . . . . . .

~ .

1,973 1 .797 87 14 7 4 Atnit q . . . . ... .... ... .. . . . . . . . . . . . . . __ --------- .... ... .. . . . . . . . . . . . . 9,474 11, 709 366 132 267

Cheyenne. . . . . . . .. ... .. . .. . .. . . . . . . . . . . _ .. . . . . .. 1,044 942 65 5 3 1

Dallas,- ~ --- .. ... .... ------------- .. . . . . . . .. . . ----------- _ . . . .. . . . . .

Denver ----------_-------------_- ------------- _ --------------_

9, 3154

4 7

8,61 4

3

S

37 2

I

15 5

' IS

21 3

Little Rack 1 ,1 . . . .. ... .... .. . . . . . . . . . . . . . . .

. . . . . . . . . . . . . : 9

2 73

:

2 43O 1 8 J 39 1 5

No. 0,1..n --------- . . .. . .. . . 33 1

1 1 8

134 112 13 1

Oklahoma Ity . ... ... .. . . . . . ---------- . . . . . . . . .. . .... .. . .. . ...

C

. . .

W

: 5 1

4 3 4 064 : 153 30 Ila

ichita . . -

Austin Ser;kW~antjr::

New York.

41 41 9

:3 96

3,89 5

959

14 8

40

33

245

243

252

, the

17

' '

3 o SO

13 . .

8

5: 133

: to

14

1

422 435

Buffalo . --------- ------------_----- _ ----_------------_-----

' ' a

6,531 166 31 29 21 2

tgca ve --------------------_------ ------------ ------------- _:: ::: :::

cum

1 : 792 1,711 48 .. ..... . . . . . .

--- __ ---------------------------------------------------- ... ' 33

Pu .nttlP- -------------- .. .. . . . . . . . . . . . . . . . . .

Mid-At an

----------------

21,62ILS1 14,310 1 1 139

6

446 7231

Baltimore. . . ... ... ....... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. ---------- _. ... . 9.814 1 411

"1

21 211

Camden . . . . . . . ... . ---------------------------------------------- __ ---- 1,946

1: .65

19

1

32

Newark ------_------- _ ----------_- . . . . . . . . . . . . . . . . . . . . . . .. . ..

2

365

!

830

11

162 92 282

;hll.d .lphia ----------------------------- ----------------- ...... ..

Itub Orgh . . . . . ... ... ....... .. . .. . . . . . . . . . . . . . . . . . . . . . . . -------------

2 745 :

297

:239

7,949

228

155

25

127

254

166

Sc. ..L . . . . . ... ... .... .. .. . . . .

1 :353 1 .299

so 1,

Richmond . . . . . . . . . . .. . .. ....... ... ... ..

, 87

1

5,450 258 1 .2

WON plitpn -------- _ ---------_-- -- . . . . . . . . . . . . . . . .. .... . . ..

1 :53 1,468 29

1'

23

thas

Philadelphia Service Center .. . . . . . . . . __ . . . . . . . . . . . . _ .

. . . . . .....

.. . 3,266 2,572 45 2 5

4

34

Ancharal GO . . . .. ... ... __ ---------- . . . . . . . . . . . . . . . . . . . . ........ ... ... 924 715 67 5 36

------------ ----------

j .543 411

I 171 16 I S

1: $to

97 22 48

Honolulu . -------------_--- -------

-

Los Angel ea. . .. . .. ... ..... ------------- . . . . . . . . . . . . . . . . . . . .. ... ... ... ...

, : 6

20,896

11,121 3

602

.6711 191 41

736

Phmml. . . . . . . . . . . . . . . .. . .. .. --------------------------- __ . . .. . .. . .. . .. 2,807

2,

. 604

Portland ---------------------- ----------- -----------_ ---------------- 'a

1

1 2

' 3, "'

114 25 114

Ran* .. . . . . . . . . . . . . . . .. .... ... .. . .. . .. . . . . . . . . . . .

1 11 "It, . . . . . . . . . .

:

1 :7 7

1 932

1,197

6

1 88

123

7

4

26

I

to )

2

n Francis.

S

. . . .. . . -.: .. .. ..

: 6

1

10

13 7 : 3 1 322 43S 411

S..ttl -----------_----------- .. ... ... ... ... 6.094 jai 16

Son Francis' Regional Training Center . . . . . . . . . . . . . . .. ... ...... ..

. 73 51 ...

9

1 2

Ogden Son1,. Center . . . . . ..... .. . . . . . . . . . . . . . . . . . . . . . .. ... ... 51356 1. 56 32 21 1 .248

2I Includes $1210 551 financed from reimbursements.

Does not ln;lud ; $1.493,440 rental transfer to General Services Administration .

*Lm than $500.

Table 28-011,11gations incurred by Internal Revenue Service, by activity

[in thousands Of dollars]

Activity

Total Obligations- ~ -------------------- -------------------------------

Revenue accounting and at. ., p-inl :

Total-----------------------------------------

Districts'

a ---- -----------------------------------------

. n_ cents, . .

.led - ---------------------------------------

.. ...

i"' reporting-

----------------------------------------

I

sternal .oil and

Encutil. direction---------------

Socuflnioand maintaining compliance with tax lam :

Lai ---------- --------------------

Audit at tax returns ----------------------------------

Collection T. I, d of delinquent accounts and socuring delinquent ~wtiu__ni r : :

as rou and special install ations, -- -------------------- ........ ...

Alcohol and

' ", F, On

or

Taxpay co 'ob= rl, .ad epp . .Z.7r,

Rulings, technical planning, and special fachnical Los ., a servicass-_----------------

Internal Ens . Tc as ---------------------------------- ----------------------- 1 .dlit and seewity. .. ---------------------------------------

.ties llecton--------------------------------------------------

1964

Tota l

549.692

141,664

94.176

46.205

4,629

1 513

:

1

3 42

408,028

T 363

93;

29,297..

3318 411

:464

131 ": 199

4:907

al Z99

1963

Sao, Boa

123,086

83

31 :304 2"

4,320

,

2"

1 : 953

377,71 8

194 .867

1126 577 : 31

3217 10, : 131

7 :

..

12

713

5,451

4,647

Personnel compensation

and lumefift.

1964

479,055

110,824

71 : '71

29 823

3,9DO

'

: 929

2 602

368,231

187 .026

93,379

25.065

27

17 389 : "'

17 03 2 :1

250

4, DOB

3,560

M~l

440,54 2

100,008

7 2 22': 406

3,256

B&Z

565

34D, 53 4

171 429

76: Us

26 95 20"

16,087

17 IRIS

L

: 17 .

43 :466

731

Other

1964

70,63 7

so, " a

12 :1

16 38 2

729

584

54 0

39 .79 7

15 277

10 :202

13'

5:7 37

1,075

787

949

799

739

1963

60,262

23,079

12,311

a $98

1

:

064174

398

37,184

13 438

9: S39

3 " 5 :744

1,014

7 51

1 , 03

98

915

,,S,NoteFl9G3 amounts shown im,Wd Or . $398,000 earned reimbursements and S1,211 .01)) tormad reimbursements. They do not Include appropriation transfer

to 000 :.r the Director

of

Front! They do not i .l .d: appropriation berate, to GSA I., rest Of pace mounting to $1,493,01D).

GSA to , nnt of space fumountp` to 195

4

mg $930,000. mc.aft shown include

99

I
ANNUAL REPORT da STATISTICAL TABLES

Table 29-Guanfity and corl statistics For printing

1964 1963

Clan of oork Q-tily (thstusanclu) Cost

(thousand

Quntlty ( usands)

-

Cos t

"ll-) ( ..ssnd

It .... . . Is Pulkeges It..

.. . . . I mostor ~. ,

lars)

(1) (2) (3) (4) (5) (6)

Total . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. ... ............. ... .. . . . ... ...

:::=

--- ------------ 9,654 ------------ ----------- 8, 8

.. .. .. . .. . Ul, 489 79,921 1, 2511 411,597 69.918 1,208

Package I (Far. 1040 and Int-flars-16 nign) -------------------- 55,136 18,379 255 145 16,715 21 8 P.,ka1 .2(Fgr .114 Schedulas 0, D, 1040ES. and Instruction

at") .. . . . .

' -28 p

148 442 18,555 410 1 32 0

"

'

10 17 040 00 Package Pat.,. 3. F- 4 Sch 6 .dul.8 C D 1040 an d

Far. 11410 :Sch.duln i 1040'E

.

i d ZZU 4'0P,21%l

67

33: 504399

144

63:004

200

104

7 72 6

i

1

3 62 5

72 :066

875

25 7

11 2

Pat .,. 5 I

Fo as

. _

065, S hadule D in~ Instructions-16 pasel ~ 358 072 is

.

ISO :a3l;

1 5

1 . ------------ -

Package 6

F*; . 120, Schedule D, and instruclions-24 Vag 121

1

Z25

29

5

625 . 125 2 8 Pangs 7 For . 1040A. Instructions. and .turn a

, Pub 393 (Far-701 2 W 4 d P b Emp act tax uk

4:

"

5 27,062 132

:

40 000 20,000 9 5 P.Af g! ~~ . l - . - , an u .

Tr

---- -

21 23 . . . . . . .. . .. ............. ... . . . . . . . . . . . . . . . . . . 1, 6G8 49-0 10 4,976 ,061 3

Other to. instructions, public T!*rinn, and pare phi Is . . . . . .

a

:' . . ... ..

-------_-

4, 1,213,351 ------------ 992

rm.

and nm'blrx .:

Adralsi totlu. t .... .-....... .. . - -------- - 501 ; 513

~~a. . . . . .

-----

3.07.0

131

N ---

2 452 Field printing i ---------- _ ----------

tax Marp. ------------------- 1,9716:07298

------------ ------ -

IS

877

100

:300

1,944,922

: :

. . .. . . . .

3

84680

A

Acts :

Revenue-1964,'29

Self-employed Individual Tax

Retirement, 50

Tau, Rate Extersion-1964, 30

Advimry group, 5 6

Alcohol and tabaeco tax:

Authorization of operations, 27

Chemical analysis and maca ch, 28

Court decisions, 66, 67

Enforcement activity, 25

Establishments :

Inspection of, 28

Qualified, 28, 83

Ubel activity, 28, 89

Major violator program, 25

Mandatory fmventive raw materials

program ,

Regulations, 61

Seizures and arrents, 26

Supervision on-prentims, 27

Statistics on, 7,74,81,82,88

Announcements, 6 3

Annual technical review institute, 50

Appeals :

Appellate Division, 17

Closing agreement cams, 19

Processing of, 1 8

Statistics on, 18,19,94,95

Appendix, 58

Assessments, additional . (See Taxes.)

Automatic data processing :

Austin Service Center, 12,51

Cincinnati Service Center, 12

Data Center, 1 3

Microfilm printer, 12, 38

Significarit highlights, 1 2

B

Budget, administrative receipts, 9

Bulletin, Internal Revenue, 5,62

Business Mante, File, 1 2

C

Carryback allowanCes, 13

Chief Counsel, Office of:

=ysis of cans flowing through, 23

a involving criminal proaccu.

tion, 2

0

C I~ITMI of

eager by, 3 1

'h nml-Technic~xl Survey, 45

Civil litigation, 3 1

Claims. (See specific item .)

Closing agreement cams, 5

Collection litigation legal services, 24

Collections :

Alcohol taxes, 7,74,81,82,84,88

Corporation income taxes, 7,74,81,82,

84,88

Disability and old~agc insurance, 7, 73,

81,8 2

Employment ta"" 7,73,81,82,

Estate and gift I-s, 7,74,111, .2

Excise taxes, 7,74,81,82

Individual income taxes, 7,73,81,82

Old-age and disability insuranm,7,73,

81,8 2

Other, 7,80,81,83,8 4

Railroad retirement, 7,73,81,82

Stamp taxes, 74-76,80-83

INDEX

Collectiona-Continued

Statistics on, 7,73,81, 82,84

Tobacco taxes, 7,76,81,82,88

Unemployment insurance, 7,73,81, 82

Withholding taxes, 7,73,81,82

Commissioner :

Contcot of suits, 64, 65

Summatry and transmittal letter, iv

Contratissioners of Internal Revenue, vii

Conventions, tax . (Ste Tax convention .. )

Coordination and cooperation with

bureaus and agencies, 44

Corporation income. taxes:

Additional aguescarents;

'

21

'

22

Claims for refund, 16

Collections, 7

Refunds of, 10, 86

Returns :

Excarni .ed, 16

Filed, 11, 87

Statistics on, 7, 73, 81, 82, 84

Court(s) :

Circuit courts of appeals, 66

Of Claims, 31, 97

Supreme, of the United States, 64, 65

The Tax, of the United States, 31

United States District, 31

Criminal prosecution:

Analysis ofcams, 20

Cases, diT,,al of, 20

Results

. ,

20

Sup-me Court decision in, 65,66

Current research program, 3 9

D

Delinquent aecounts :

Disposal., 22, 23

Statistics on, 22, 2 3

Delinquent returns and delinquency

investigations :

Additional tax from, 19, 20

Analysis of, 19, 20

Stanistim on, 22

Determination letters:

Employee benefit plans, 4

Exempt organizations, 4, 5

Pension trust~lang, 4

Statistics on ,

Disability insurance tances :

Collections, 7

Refunds, 10

Diseiplinwy actions, 55

Disclosures, vol=,15

Dividends and 39

Documentary stamp tax meter

system, 4

E

Economic censts, 44

Employee benefit plans, determination

letters on, 5

Employment taxes:

Additional assessments resulting from

examination, 1 6

Appellate Division processing of, 19

Claims far refunds, 1 7

Collections, 7, 73, 81, 82, 84

Refunds of, 10, 86

Returns :

Examined, 16

Filed, 11, 87

Enfianecment activities:

Additional tax from, 2 1

Alcohol and tobacco tax enfonotment, 25,2 7

A In, 17

C= disallowed, 17

Delinquent accounts, 22

Delinquent remens, 19

Examination program, 15

Firearms program, 26

Inform=ts' rewards, 25

Mathematical verificuttion, 14

National Identity File, 14

Offers in compromise, 24

Tax fraud investigations, 2 0

Engineering institute, 50

Estate tax :

Additional assessr-nal 22

Claims for refunds, 10

Collections, 7

Refunds of, 10

Rem a :

Examined, 16

Filed, 11j8 7

Estimated tax, declarations of :

Corporation, 1 1

Individual, 1 1

Processed by service centens, 13

Examination, additional assessments

from, 2 1

Examination program :

Claims for refund, 17

Classification and selection of

returns, 1 5

O-surnessments of tax, 17

Remms examined, number of, 16

Tax recornmended, .additional, 15, 16

Excise tax,es;

Additional assessments, 22

Adgllc~tc Division processing of, 19

.ections, 7, 74, 81, 82, 84

Refunds of, 1 0

Returns filed, 11, 8 7

Exempt organizations, determination

letters on, 5

F

Facilities manage-t :

Property and supply management

program, 5 1

Records and paperwork, 52

Space, 5 0

Statistics on, 52

Federal-State cooperatim 14, 25

File :

Business Master File, 12

Individual Master File, 12

National Identity File, 1 4

Field offices, reduction of, 45

Firearms program, 2 6

Fiseal management :

Cost of operations, 52

Statiatim on, 54, 98, 99

Foreign tax assistance staff, 33

Foreign tax officials, assistance to, 33,48

Forms :

Cost of printing, 100

New :

2950SE, 60

2969, 60

2970, 60

2848, 60

100 101

2848-A, 6 0
I

I

Forrics-Continued

New-Continued

3625, 60

3626, 60

3650, 60

3651, 60

3672, 60

3673, 60

Tax return program, 3

Fraud investigations, tax, 2 0

G

Gasoline taxes:

Collections, 77, 81, 83

Refunds, 1 0

General Amounting Office Reports, 56

Gift taxes :

Additional assessments, 22

Claims for refunds, 17

Collections, 7, 74 : 81, 82, 84

Refunds of, 10, 8 6

Returns filed, 11, 8 7

Honors, Regional Commissioner White,

48, 49

I

Incentive awards program, 48

Income tax(es) :

Additional, from enforcement, 22

Ail returns, 7, 73, 81, 8:2, 84

Corporation, 7, 73, 81, 82, 84

Individual, 7, 73, 81, 82, 84

Processing of pr.t,.tcd cases, 18

Indictments, 2 1

Individual income taxes:

Additional assessments, 22

Appellate Division processing of, 20

Claims for refund, 17

Collections, 7, 73, 81, 82, 84

Mathematical wrification of, 14

Refunds of, 1 0

Returns:

Classification and examination of, 15

Filed, 11, 8 7

Processed in strvim, c-ters, 13

Individual Mariter File, 1 2

I nforlmorl co, ference procedure, 45 1 .

rolmants:

Claims, disposed of, 25

R-ards to, 2 5

Information returns,num1wrecceived, 11

Institute, annual technical review, 50

Inspection activities, 54

Internal audit, 54

Internal securit I 55

nwitigations, ~i

Statistics on, 5 5

Intelligence: Division :

Statistics on, 20

Tax fraud investigations, 20

Interest allowed on refunds, 10

Interest equalization tax, 4

Internal technical development =it

guidance, 5 0

International Operations :

Activities of, 33

Foreign posts of, 3 4

Income growth, statistics on, 35

Withheld taxes, 3 5

In,tcrpm-tat ax laws :on and communication of

o

taxpayers, 2

1

nwstigatioos

Delinquency,: 19

Disciplinary actions, 55

102

ANNUAL REPORT e INDEX

Investigations-Continued

Personnel, 5 5

Prosecutions recommended, 20

Statistics on, 20, 55

Tax fraud, 2 0

Wagering and coin-operated gaining

dcvims, 20

J

joint Committee mr Internal Revenue

Taxation, 1 9

joint integrity program, 5 5

Laboratories :

Research, 28

Testing, 2 8

Legal activities, 31

L.cgislative activities, 2 9

Litigation, appeals and civil, results of, 31

L,orig~r planning, 36

M

Major management improvements, 44

Major violator program, 2 5

Mandatory rventative raw materials

program,

5

Management activities, 44

Managemen t improvement program, 44

Map of Internal Revenue region and

districts, xi i

Mathematical verification :

Additional tax from, 14, 22

Statistics on, 14

Microfilm printer, 37, 38

N

National Computer Ccreter, 54

National Identity File, 14

Non-ADP service, centers, 12

Nondiscrimination prograin, 46

Obligations incurr~ci, Internal Revenue

Service, 54, 98, 9 9

Occupational taxes ;

Collections, 74, 75, 80, 81, 82

Number of stamps issued by class of

tax, 90-93

Returns filed, I I

Offers in compromise, 2 4

Officers, principal, Internal Revenue

Service, vii i

Old-age insuranm taxes:

Collections, 7, 73, 81, 82

Rc,funds .f, 10, 8 6

Organizational planning, 37

Other collections, 7, 80, 81

Overasicssments, 1 7

Overariscrisce-ts reported tojoint Core .

inittim, 1 9

Overpayments offset prior to refund, 1 5

Pension trust plans, 4

Personnel:

Attitude sur-ys, 46

Career program, 47

Emplore-manaFment relations, 4 6

Equal employment program, 47

Executive selection program, 47

Incentive awards, 48

Inwittigritiom, 55

Personnel-Continued

Management information by

I,r,Computer 47 .E

arm eva'

.

I

.-it rin"

..o

__ . Prograra,46

.n .,

.t_

it rel ., 48

art= guidelines, 47

Recruitment, 4 6

Staffing and redeployment, 4Z

Statistics on, 46

Taxtrairseeprograrn,47

Utilization of manpower and contro l

of grade structure, 48

Planning activities, 36

Principal officersofthe Internal

Revenue Service, viii

Printer, microfilm, 37, 38

Programs :

C.-r,47

Equal employment opportunity, 47

Executive selection and development,

4 7

Incentive awards, 48

joint integrity, 55

Nondiscrimination, 46

Property and supply management, 51

Reports, 4 5

Research, 39

Tax trainee, 47

Taxpayer assistance, 3

Tax ayer conspliance measurement,

34,

Teaching taxes, 3

Protested cases, statistics on, 18, 19

Public information program :

Films, radio, and television, 3

Ne-leasei, 2

Other, 2

Publications, taxpayer :

Alcohol and Tobacco, Summary

Statistics, 5 8

CxistorotherBasis ofAssets, 59

Farmer's Tax Guide, 5 9

Foreign Tax Credit for U .S . Citizens

=it Resident Aliens, 59

Im o ~nm of Adequate Records and

nrude to Information Available

for Preparing Federal Tax Returns,

5 9

Information Guides, 58

Motor Fuel Tax, 59

Objective of, 2

Rules for Deducting Trawl

I E

tertainment, and Gift Expenses, 59

Statistics of Income Releases, 68

Tax Guide for Small Business, 58

Tax Tips for Homeowners, 59

Taxpayer Assistance Documents, 60

Tobacco Tax Guide, 5 8

Teaching Taxes, 59

Your Federal Incestic Tax, 58

Puerto Rico, 88

R

Railroad retirement taxes :

Collections ; 7, 73, 81, 82

Refunds of, 1 0

Returns filed, 1 1

Receipt and processing of returns, I I

Recruitment, 4 6

Refunds:

Claims for, 1 7

Exccs~ivc prepayments, 10

Statistics on, 10, 86

Regulations !

Alcohol and tobacco taxes, 61

Amended, 6 0

Excise tax, 61

f

I

Regulations-Continued

Hearings on, 4

New 4

Tcrn~orary, 61

Reor arintions :

Ch I Counsel, 45

Realinement of field offices, 45

Reports, General Accounting Office, 56

Reports program, 45

Requests for tax rulings, analysis ,f, 4

Research program, 3 9

Resources utilization, 44

Returns filed :

Classification and selection of, 15

Examination of, 15, 1 6

Increase in, 15

Number examined, 16

Processed in service centers, 13

Projections, 36

Statistics on, 11, 87

Verification, 1 4

Rewnue rulings and procedures :

Analysis of, 5

Published, 5, 62

S

Service -nice,, 12, 1 3

Short-rarge operational planning, 36

Stamp taxes, statistics of, 74, 76, 81, 83,

9 0

Statistical reporting, 3 9

Supervision of the alcohol and tobacco

industries, 2 7

Supreme Court decisions :

Civil cases, 64

Criminal cases, 65

Other court actions, 66

Survey, Chief Counsel-Technical, 45

Systems Development, 37

ANNUAL REPORT 9 INDEX

Tax briefs, 50

T

Tax conventions, 33

Tax Court, The . (See also Appeals.)

Disposal of cases, 19, 96, 9 7

Tax laws, interpretation and communication of, 2

Tax(ei) :

Additional :

From delinquent returns secured, 22

From enforcement, 2 2

From examination, 1 6

From mathematical verification, 14,

22

From National Identity File, 22

Alcohol, 7, 74, 81, 82, 8~4, 88

Corporation income and profits ' 7, 73

81, 82, 8 4

Disability insurance, 7, 73, 81, 82

Employment, 7, 73, 81, 82

Estate, 7 74, 81, 8 2

Excise, 7, 74, 81, 8 2

Gasoline and motor fuels, 77, 81, 82

Gift, 7, 74, 81, 82

Individual income, 7, 73, 81, 82

Old-.gc insurance, 7, 73, 81, 82

Other, 7, 80, 81, 83, 84

Railroad retirement, 7, 73, 81, 82

Stamp, 74-76, 80-8 3

Tobacco, 7, 76, 81, 82, 88

Uncer,ployment, 7, 73, 81 82

Withholding, 7, 73, 81, 8~

Taxpayer assr.stance program, 3

Taxpayer compliancr, measurement

program, 37

Tax rulings :

Request for, 4

Statistics on, 5

Tax trainee program, 47

Teaching taxes program, 3

Technical information releases, 62

Tobacco tax(es) :

Ao-flctsiun16 7, 76, 81, 82

Refund. of, 1 0

Results of criminal action, 21

Returns filed, 1 1

Seizures, 2 6

Statistics on, 7, 76 . 81, 82, 84, 88

Tort claims, 3 2

Training:

ADP program management, 48

Experimental center, 49

Foreign tax assistance, 4 8

New techniques, 48

Revenue Act of 1964, 49

State tax assistance, 4 8

Treasury Decisions, 61

Treasury-Internal Revenue Service,

Committee on Statistics, 4 3

U

U=oymcnt insurance taxes zns :

7, 73, 81, 82

Refunds of, 1 0

Returns filed, 11, 87

V

Vr,1r4ific2a2tion, matticeratical, result of,

Voluntary disclosures, 1 5

Wagering tax cases, results of criminal

action, 2 1

Wines, taxes collected, 75, 81, 82

Withholding taxes, by employer, 7, 73,

81, 82

Work flow in the Service arid courts, 2

103