ANNUAL REPORT 

OF THE 

COMMISSIONER OF
 

INTERNAL REVENUE
 

FOR THE FISCAL YEAR ENDED JUNE 30 

1952
 

UNITED STATES
 

COVERNMENT PRINTING OFFICE
 

WASHINGTON,1953
 

For ...Ic by the Su~rint.endlt11t oE Document.J. U. S. C~ernmcnt Printina OIJic:e
 

Wa"hinllOft 15. D. C. Prke 70 ItCnb (paper cover)
 
LETTER OF TRANSMITTAL 

TREASURY DEPARTMENT 

Document No. 3182 

Internal Revenue 

TREASURY DEPARTMENT, 

OFFICE OF COMMISSIONER OF INTERNAL REVENUE, 

Washington, D. C., January 16, 1953 

The honorable the SECRETARY OF THE TREASURY. 

SIR: I have the honor to present to you the "Annual Report of the 

Commissioner of Internal Revenue for the Fiscal Year 1952," which 

describes the activities and indicates the progress of the Internal 

Revenue Service for the past year. 

Your attention is invited to the form of this report, which departs 

from that of previous years. The difference in the form of presentation is the result of reporting the operations on a functional instead of 

an organizational basis. The main purpose of this new presentation 

is to facilitate appraisal, on a program-by-program basis, of the 

accomplishments of the Internal Revenue Service. 

Reorganization Plan No. 1 of 1952, providing for the complete 

overhauling of the organization, policies, and procedures in Federal 

tax administration, will make the 1952 fiscal year one of the most 

notable in the 90-year history of the Internal Revenue Service. This 

report describes this reorganization. 

Without your vision and guidance, I do not believe that so adequate 

and complete a reorganization of Federal tax administration could 

have been accomplished. Your firm leadership toward an improved 

tax administration, based on a broad understanding of the Treasury's 

and Nation's needs in this field, has secured for the American people 

a sound organization of Federal tax administration. I am happy to 

report that the officers and employees of the Internal Revenue Service 

have wholeheartedly and enthusiastically responded to your direction 

and leadership. I know they can be depended upon to continue to 

raise the quality and dependability of the tax service rendered to the 

American taxpayer. 

JOHN S. GRAHAM, 

Acting Commissioner of Internal Revenue. 

HON. JOHN W. SNYDER, 

Secretary of the Treasury. 
CONTENTS 

REPORT ON OPERATIONS 

Pan 

Internal revenue collections 3 

Collections from income and profits taxes 4 

Corporation income and profits taxes_ 4 

Individual income taxes 5 

Employment taxes 5 

Miscellaneous internal revenue 5 

Returns filed 6 

Enforcenlent work 7 

Returns examined 7 

General 7 

Mathematical verification 7 

Selection of returns for examination 7 

Examination of returns 8 

Fraud investigations 9 

Alcohol and tobacco tax regulatory work 11 

General 11 

Liquor plants and per mittees II 

Production of distilled spirits 11 

Tax-paid withdrawals of distilled spirits 12 

Tax-free withdrawals of distilled spirits 12 

Transfers in bond of distilled spirits to industrial alcohol plants 

and bonded warehouses 12 

Production of rectified products 13 

Consumption of distilled spirits 13 

Stocks of distilled spirits 13 

Fermented malt liquors 13 

Wines 13 

Production and importation of ethyl alcohol 14 

Tax-free withdrawals of ethyl alcohol 14 

Production of denatured alcohol 14 

Tax-paid withdrawals and stocks of ethyl alcohol 14 

Transfers in bond of ethyl alcohol to registered distilleries and 

internal revenue bonded warehouses 14 

Production of vinegar 15 

Production of volatile fruit-flavor concentrates 15 

Laboratory activities 15 

Inspection activities 15 

Basic permits 15 

Labels 16 

Advertising 16 

Trade practices 16 

Interlocking directorates 17 

Seizures and arrests 17 

Tobacco activities 18 

Firearms program 18 

Legal work on criminal cases 18 

Delinquent returns and collection of delinquent accounts: 

Delinquent returns 19 

Warrants for distraint 20 

Collection through litigation, by claims in noncourt proceedings, 

and through discharges of liens 20 

Appellate work and civil litigation 21 

General 21 

Adjustments protested by taxpayers 22 

Appellate Staff consideration of cases not before the Tax Court 22 

Cases petitioned to the Tax Court 23 

Federal courts 24 
VI CONTENTS 

Changes in tax liability 

Additional tax assessed 

Overassessments and overpayments 

Refunds and repayments 

Excessive prepayments of individual income tax 

Claims for relief from excess profits tax 

Tentative adjustments 

Other claims 

Review of overassessments exceeding, $200,000 

Offers in compromise 

Interpretative and other technical functions 

Inspection Service activities 

Investigations of alleged misconduct and irregularities on the part of 

employees and officials 

Field office inspection 

Employees' financial statements, Form 1361_, 

Audit of employees' tax returns 

Personnel summary 

Disciplinary actions against employees 

Rules of conduct revised 

Cost of administration 

Rewards to informers 

Improvements 

Tax forms revision 

New tax form mailing assembly 

Changes in organization and procedure 

Changes in fraud procedure 

Operating manuals 

Regional finance offices 

New equipment 

Inspection Service 

Other actions 

Legal functions 

Tax conventions affecting the Bureau of Internal Revenue promulgated 

during the fiscal year 1952 

Important legislation enacted during the fiscal year 1952 affecting the 

Bureau of Internal Revenue 

REORGANIZATION OF THE INTERNAL REVENUE SERVICE 

Record of reorganization 

History of the reorganization 

Enactment of Reorganization Plan No. 1 

Provisions of the Plan 

Implementation of the Plan 

Advantages of the reorganization 

EXHIBIT A 

Reorganization Plan for the Internal Revenue Service and accompanying 

message, as submitted to the Congress by file President 

EXHIBIT B 

Charts showing organization of Bureau of Internal Revenue under Reorganization Plan No. 1 of 1952 

EXHIBIT C 

A report to taxpayers with foreword by the Honorable John W. Snyder, 

Secretary of the Treasury_ 

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79 

CONTENTS 

STATISTICAL TABLES 

RECEIPTS FROM INTERNAL REVENUE TAXES 

Table 

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

June 30, 1952, by collection districts, States, and Territories 

2. Comparative internal revenue collections, fiscal years 1951 and 1952, 

by collection districts, States, and Territories 

3. Summary of internal revenue collections, year ended June 30, 1952, 

by States and Territories 

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

ended June 30, 1952, by sources 

5. Summary of internal revenue collections, years ended June 30, 1951 

and 1952, by sources 

6. Summary of internal revenue receipts by principal sources, fiscal 

years 1916 through 1952 

7. Internal revenue tax on manufactured products from Puerto Rico, 

fiscal years 1951 and 1952, by objects of taxation 

ADDITIONAL ASSESSMENTS RESULTING FROM AUDIT BY 

INTERNAL REVENUE AGENTS 

8. Additional income and profits tax assessments on the Commissioner's 

and collectors' lists made during the fiscal year 1952, by tax years 

9. Income and profits tax deficiencies appealed to the Tax Court, fiscal 

year ended June 30, 1952 

ALCOHOL, DISTILLED SPIRITS, BEER, WINES. ETC. 

Plants and permittees 

10. Plants and permittees qualified to engage in the production, distribution, or use of alcohol and alcoholic liquors, by States, as of June 

30, 1952 

11. Permits under sections 3070 through 3125, Internal Revenue Code, 

fiscal year 1952 

12. Permits under the Federal Alcohol Administration Act, fiscal year 

1952 

13. Permits under the Federal Alcohol Administration Act, by States, as 

of June 30, 1952 

Undenatured ethyl alcohol 

14. Materials: Used at industrial alcohol plants in production of ethyl 

alcohol, by kinds and by months, fiscal year 1952 

15. Materials: Used at industrial alcohol plants in production of ethyl 

alcohol, by kinds and by States, fiscal year 1952 

16. Materials. Used at industrial alcohol plants in the production of ethyl 

alcohol, by kinds, and quantities of ethyl alcohol produced therefrom, fiscal year 1952 

17. Summary: Production, withdrawals, and stocks of ethyl alcohol, by 

months, fiscal year 1952 

18. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of ethyl alcohol, and premises operated, by States, fiscal year 

1952 

19. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of ethyl alcohol, and premises operated, fiscal years 1934 to 

1952, inclusive 

Undenatured Imported ethyl alcohol 

20. Summary: Importations, withdrawals, and stocks at industrial alcohol 

bonded warehouses, of imported ethyl alcohol, by months, fiscal 

year 1952 

21. Summary: Importations, withdrawals, losses, and stocks at industrial 

alcohol bonded warehouses, of imported ethyl alcohol, by States, 

fiscal year 1952 

22. Summary: Importations, withdrawals, losses, and stocks at industrial 

alcohol bonded warehouses, of imported ethyl alcohol, fiscal years 

1943 to 1952, inclusive 

VII 

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192 
VIII CONTENTS CONTENTS IX 

198 

Denatured alcohol 

Table 

23. Production: Ethyl alcohol used for denaturation and completely and 

specially denatured alcohol produced, by months, fiscal year 1952__ 

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

months, fiscal year 1952 

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

1952 

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

months, fiscal year 1952 

27. Summary: Ethyl alcohol used for denaturation, and production, withdrawals, stocks on hand June 30, and losses of denatured alcohol, 

and denaturing plants operated, by States, fiscal year 1952 

28. Operations in specially denatured alcohol by bonded dealers: By 

States, fiscal year 1952 

29. Operations in specially denatured alcohol by manufacturers: By 

States, fiscal year 1952 

30. Summary: Ethyl alcohol used for denaturation, and production, withdrawals, receipts, quantities used, and stocks on hand June 30, of 

denatured alcohol, and premises operated, fiscal years 1934 to 1952, 

inclusive 

Distilled spirits: Unrectified 

31. Materials: Used at registered distilleries in production of distilled 

spirits, by kinds and by months, fiscal year 1952 

32. Materials: Used at registered distilleries in production of distilled 

spirits, by kinds and by States, fiscal year 1952 

33. Materials: Used at fruit distilleries in production of brandy and 

spirits, by kinds and by months, fiscal year 1952 

34. Materials: Used at fruit distilleries in production of brandy and 

spirits, by kinds and by States, fiscal year 1952 

35. Production: Distilled spirits, by kinds and by months, fiscal year 1952_ 

36. Production: Distilled spirits, by kinds and by States, fiscal year 1952_ 

37. Production: Brandy and spirits by fruit distilleries, by kinds and by 

months, fiscal year 1952 

38. Production: Brandy and spirits by fruit distilleries, by kinds and by 

States, fiscal year 1952 

39. Withdrawals: Distilled spirits, total tax-paid, by kinds and by months, 

fiscal year 1952 

40. Withdrawals: Distilled spirits, total tax-paid, by kinds and by States, 

fiscal year 1952 

41. Withdrawals: Bottled-in-bond distilled spirits, tax-paid, by kinds and 

by months, fiscal year 1952 

42. Withdrawals: Bottled-in-bond distilled spirits, tax-paid, by kinds and 

by States, fiscal year 1952 

43. Withdrawals: Distilled spirits, total tax-free, by kinds and by months, 

fiscal year 1952 

44. Withdrawals: Distilled spirits, total tax-free, by kinds and by States, 

fiscal year 1952 

45. Losses: Distilled spirits in internal revenue bonded warehouses, by 

kinds and by States, fiscal year 1952 

46. Stocks: Distilled spirits in internal revenue bonded warehouses, by 

kinds and by months, fiscal year 1952 

47. Stocks: Distilled spirits in internal revenue bonded warehouses, by 

kinds and by States, June 30, 1952 

48. Stocks: Distilled spirits in internal revenue bonded warehouses, by 

kinds, and by years and seasons of production, June 30, 1952 

49. Stocks: Whisky in internal revenue bonded warehouses, by years and 

seasons of production, and by States, June 30, 1952 

50. Summary: Production, withdrawals, and stocks of distilled spirits, by 

months, fiscal year 1952 

51. SuMmary: Production, withdrawals, and stocks on hand June 30, of 

distilled spirits, and premises operated, fiscal year 1952 

52. Summary: Production, tax-paid withdrawals, and stocks on hand June 

30, of whisky and of total distilled spirits, and premises operated, 

fiscal years 1934 to 1952, inclusive 

Distilled spirits and wines: Rectified 

Table Page 

53. Materials: Used in production of rectified spirits and wines, by kinds 

and by months, fiscal year 1952 216 

54. Materials: Used in production of rectified spirits and wines, by kinds i 

and by States, fiscal year 1952 216 

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

fiscal year 1952 217 

56. Production: Rectified spirits and wines, by kinds and by States, and 

premises operated, fiscal year 1952 217 

57. Summary: Materials used for rectification and production of rectified 

spirits and wines, and premises operated, fiscal years 1936 to 1952, 

inclusive 218 

Consumption of distilled spirits 

58. Bottling: Distilled spirits (rectified and unrectified) bottled for consumption, fiscal year 1952 

59. Summary: Distilled spirits (rectified and unrectified) bottled for consumption, fiscal years 1941 to 1952, inclusive 

Denatured rum 

60. Summary: Rum used for denaturation, and production, removals, and 

stocks of specially denatured rum at distillery denaturing bonded 

warehouses, by months, fiscal year 1952 

61. Summary: Rum used for denaturation, and production, removals, and 

stocks on hand June 30, of specially denatured rum at distillery denaturing -bonded warehouses, by States, fiscal year 1952 

62. Operations in specially denatured rum by manufacturers: By States, 

fiscal year 1952 

Fermented malt liquors and cereal beverages 

63. Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by months, fiscal year 1952 

64. Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by States, fiscal year 1952 

65. Summary: Production, withdrawals, losses, and stocks of fermented 

malt liquors, by months, fiscal year 1952 

66. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of fermented malt liquors, and breweries operated, by States, 

fiscal year 1952 

67. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of fermented malt liquors, and breweries operated, fiscal years 

1934 to 1952, inclusive 

68. Summary: Production, withdrawals, and stocks of cereal beverages, 

by months, fiscal year 1952 

69. Summary: Production, withdrawals, and stocks on hand June 30, of 

cereal beverages, and plants operated, by States, fiscal year 1952 

Wines 

70. Materials: Used in production of still wines, by kinds and by months, 

fiscal year 1952 

71. Materials: Used in production of still wines, by kinds and by States, 

fiscal year 1952 

72. Production: Still wines produced and treatment of wines after fermentation, by months, fiscal year 1952 

73. Production: Still wines produced and treatment of wines after fermentation, by States, fiscal year 1952 

74. Withdrawals: Still wines, by months, fiscal year 1952 

75. Withdrawals: Still wines, by States, fiscal year 1952 

76. Summary: Production, withdrawals, losses, and stocks of still wines, 

by months, fiscal year 1952 

77. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of still wines, and premises operated, by States, fiscal year 1952_ 

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X CONTENTS 

Table 

78. Summary: Production, withdrawals, losses, and stocks of sparkling 

wines, by months, fiscal year 1952 

79. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of sparkling wines, and number of premises operated, by States, 

fiscal year 1952 

80. Summary: Production, withdrawals, losses, and stocks of vermouth, 

by months, fiscal year 1952 

81. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of vermouth, and number of premises operated, by States, fiscal 

year 1952 

82. Summary: Production, withdrawals, losses, and stocks of aperitif 

wines other than vermouth, by months, fiscal year 1952 

83. Summary: Production, withdrawals, losses, and stocks on hand June 

30, of aperitif wines other than vermouth, and number of premises 

operated, by States, fiscal year 1952 

84. Summary: Production, tax-paid withdrawals, and stocks on hand 

, June 30, of still and sparkling wines, and premises operated, fiscal 

years 1934 to 1952, inclusive 

85. Summary: Materials used for the production of ethyl alcohol, distilled spirits, fermented malt liquors, and vinegar, by kinds, fiscal 

year 1952 

Vinegar 

86. Summary: Materials used at vinegar plants, and production and stocks 

of vinegar, by months, fiscal year 1952 

87. Summary: Materials used at vinegar plants, production and stocks of 

vinegar, and premises operated, fiscal years 1943 to 1952, inclusive_ _ 

Volatile fruit-flavor concentrates 

88. Production: Volatile fruit-flavor concentrates, by kinds, and by 

months, fiscal year 1952 

Claims 

89. Claims for redemption of stamps and remission, abatement, and refund 

of taxes, fiscal year 1952 

90. Claims for drawback, fiscal year 1952 

Label activity 

91. Label activity under Federal Alcohol Administration Act, fiscal year 

1952 

Enforcement, Alcohol and Tobacco Tax Division 

92. Enforcement, Alcohol and. Tobacco Tax Division: Seizures and 

persons arrested, by months, fiscal year 1952 

93. Enforcement, Alcohol and Tobacco Tax Division: Seizures and 

persons arrested, by States, fiscal year 1952 

TOBACCO 

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

from farmers, calendar year 1951, by collection districts 

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

and other materials used, calendar year 1951, by collection districts_ _ 

96. Tobacco and snuff manufactured and removed, calendar year 1951, 

by collection districts 

97. Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1951 

98. Cigars: Number of factories operated, quantity of tobacco used, 

number of cigars manufactured, and removed without payment 

of tax, calendar year 1951, by collection districts 

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254 

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 237 

CONTENTS 

Table 

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

tax-paid, by classes, calendar year 1951, by collection districts__ 

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

and removed tax-paid for domestic consumption from customs 

bonded manufacturing warehouses, class 6, by classes, calendar 

year 1951 

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

of factories operated, quantity of tobacco used, number of cigarettes 

manufactured and removed, calendar year 1951, by collection 

districts 

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

tobacco used, number of cigarettes manufactured and removed, 

calendar year 1951, by collection districts 

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

and snuff, calendar years 1947 to 1951 

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

calendar years n47 -to- 1951 

105. Summary of operatiops of manufacturers of tobacco and cigars, 

calendar years 1950 and 1951 

106. Tobacco products withdrawn for consumption, computed from collections from the sales of stamps, fiscal year 1952 

107. Domestic and imported cigarette papers and tubes withdrawn taxfree and tax-paid, fiscal years 1951 and 1952 

108. Withdrawals of manufactured tobacco,. snuff, cigars, and cigarettes 

from bonded internal revenue tobacco export warehouses, for 

export, year ended June 30, 1952 

109. Withdrawals of manufactured tobacco, snuff, cigars, and cigarettes 

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

ended June 30, 1952 

110. Withdrawals of manufactured tobacco, snuff, cigars, and cigarettes 

from tobacco sea stores warehouses, for shipment or delivery as 

sea stores or export, year ended June 30, 1952 

111. Exportation in bond of manufactured tobacco, snuff, cigars, and 

eigarettes,-etc., year ended June 30, 1952, by collection districts_ _ 

STAMP TAXES 

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

stamps covering the fiscal year 1952, or portion thereof, under 

the various annual rates, by collection districts and States 

113. Production and withdrawals of renovated butter, year ended June 

30, 1952, by collection districts 

114. Summary of production and tax-paid withdrawals of renovated 

butter, years ended June 30, 1943 to 1952 

115. Production, importation, and withdrawals of playing cards, by 

months, year ended June 30, 1952 

116. Summary of internal revenue stamps issued to collectors of internal 

revenue and the Postmaster General during the fiscal years 1951 

and 1952 

APPELLATE WORK AND CIVIL LITIGATION 

121. Progress in disposition of cases pending before The Tax Court of 

122. Analysis of cases disposed of in Tax Court, fiscal year 1952 281 

120. Summary of receipts, dispositions, and pending inventories of non119. Analysis of work on compromise, extension of time, and final closing 

117. Analysis of the work of the Appellate Staff during the fiscal year 

118. Summary: Income, profits, estate, and gift tax appeals docketed, 

docketed, docketed, and compromise work (income, profits, 

estate, and gift tax cases), fiscal years 1943 to 1952, inclusive 281 

the United States, fiscal year 1952 

agreement cases, fiscal year 1952 

stipulated, defaulted, and defended on the merits before the Tax 

inclusive 

Court (formerly Board of Tax Appeals), fiscal years 1940 to 1952, 

1952—Income, profits, estate, and gift tax cases 278 

281 

XI 

Pan 

256, 

258 

259 

261 

261 

262 

263 

264 

265 

265 

265 

265 

266 

268 

274 

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274 

275 

280 

280 
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283 

284 

284 

286 

291 

293 

XII CONTENTS 

Table 

123. Tax Court cases on review in courts of appeal or Supreme Court, 

fiscal year 1952 

124. Analysis of Tax Court cases on review in courts of appeal or Supreme Court, fiscal year 1952 

125. Suite by taxpayers, fiscal year 1952 

126. Claims and suits by the United States, fiscal year 1152 

127. Lien cases, fiscal year 1952 

128. Insolvency and other debtor proceedings, fiscal year 1952 

129. Results obtained in insolvency and other debtor proceedings closed, 

fiscal year 1952 

COST OP ADMINISTRATION 

130. Expenses of the Internal Revenue Service, fiscal yew ended June 

30, 1952 

131. Cost of prini,ing and binding for Internal Revenue Service, fiscal 

years 1951 and 1952 

INDEX 

NOTE 

In tables where figures have been rounded to a apeattieci unit, the components 

may not necessarily add to totals. Percentages have beezi calculated on unrounded figures. 

COMMISSIONERS OF INTERNAL REVENUE FROM JULY 1862 1TO 

JANUARY 1953 

Name 2 State 

Service 

From— To— 

George S. Boutwpll Massachusetts July 17, 1862 Mar. 4, 1863. Joseph J. Lewis 

William Orton 

Pennsylvania Mar. 18,1863 June 30, 1865, New York July 1.1865 Oct. 31, 1865. Edward A. Rollins New Hampshire . Nov. 1,1885 Mar. 10, 1869. Columbus Delano Ohio Mar. 11. 1889 Jan. 2, 1871. Alfred Pleasonton New York Jan. 3.1871 Aug. 8, 1871. John W. Douglass Pennsylvania Aug. 9, 1871 May 14. 1875. Daniel D. Pratt Indiana May 15,1875 July 31, 1876. Green B. Raum 

Walter Evans 

Illinois Aug. 2, 1878 Apr. 30, 1883. 

Kentucky May 21, 1883 Mar. 19, 1885. Joseph S. Miller West Virginia Mar. 20,1885 Mar. 20, 1889, John W. Mason do Mar. 21, 1889 Apr. 18, 1893. Joseph S. Miller 

W. St. John Forman do Apr. 1%1893 Nov. 26, 1896 Illinois Nov. 27, 1896 

- 

Dec. 31. 1897. Nathan B. Scott West Virginia Jan. 1,1898 Feb. 28, 1899. George W. Wilson Ohio Mar. 1,1899 Nov. 27, 1900. John W. Yerkes Kentucky Dec. 20, 1900 Apr. 30, 1907. John G. Capers South Carolina June 5, 1907 Aug. 31, 1909. Royal E. Cabell 

William H. Osborn 

Virginia Sept. 1, 1909 Apr. 27, 1913. North Carolina Apr. 28,1913 Sept. 25, 1917. Daniel C. Roper 

William M. Williams 

South Carolina Sept. 26, 1917 Mar. 31. 1920. Alabama Apr. 1, 1920 Apr. 11, 1921. David H. Blair North Carolina May 27, 1921 May 31, 1929. Robert H. Lucas Kentucky June 1,1929 Aug. 15, 1930. David Burnet Ohio Aug. 20, 1930 May 15, 1933. Guy T. Ff elvering Kansas June 6.1933 Oct. 8, 1943. Robert E. Hannegan Missouri Oct. 9, 1943 Jan. 22, 1944. Joseph D. Nunan, Jr New York Mar. 1, 1944 June 30. 1947. George I. Schoeneman 

PAP B. Dunlap 

Rhode Island 

Texas 

July 1, 1947 

Aug. 1,1951 

July 31, 1951. 

Nov. 18, 1952. 

1 Office of Commissioner of Internal Revenue created by Act of Congress, July 1, 1862. 

2 In addition, the following were Acting Commissioners during periods of time when there was no real 

Commissioner holding the office: John W. Douglass, of Pennsylvania, from November 1 870, to January 

2, 1871; Henry C. Rogers, of Pennsylvania, from May 1 to May 10, 1883; John J. Knox, of Minnesota, from 

May 11 to May 20, 1883; Robert Williams Jr., of Ohio, from November 28 to December 9, 1900; Millard F. West, of Kentucky, from April 12 to May 26, 1921; H. F. Mires, of Washington, from August 15 to August 20, 1930; Pressly R. Baldridge, of Iowa, from May 15 to June 5, 1933; Harold N. Graves, of Illinois, 

from January 23 to February 29, 1944; and John 8. Graham, of North Carolina, from November 19, 1952, to present. 

• EJII 
REPORT ON OPERATIONS 
INTERNAL REVENUE COLLECTIONS 

During the 1952 fiscal year, the Bureau of Internal Revenue collected $65 billion from the internal revenue taxes. This is the largest 

amount of internal revenue tax collections ever made during any year. 

The previous high was in fiscal 1951 when over $50 billion was collected. 

Collections include tax payments made by cash, check, money 

order, depositary receipt, etc., received in the Internal Revenue Service 

offices. The amount of these collections for any time period will 

differ from the amount reported in daily Treasury statements for the 

same period because: (1) depositary receipts for tax withheld from 

wages are reported in the Treasury statements when received by 

Federal depositaries, whereas the collections represented by these 

depositary receipts are not reported by the Internal Revenue offices 

until they are received with the filing of the quarterly tax returns; 

and, (2) tax payments received in the Internal Revenue offices during 

the last few days of any period may not be immediately deposited 

and, therefore, may be reported as part of the collections for the sub- sequent period. 

Most of the $15 billion increase in tax collections realized during 

the fiscal year ended June 30, 1952, over the preceding fiscal year 

primarily reflects the converging effects of the increased taxes enacted 

by the 1950- and 1951 tax legislation to help finance the increased 

defense expenditures following the outbreak of the Korean hostilities. 

A lesser portion of the increase can be attributed to the higher levels 

of net income and profits realized by taxpayers. 

The accompanying table shows the internal revenue collections by 

major groups of taxes. In addition to the actual amounts collected 

during the 1951 and 1952 fiscal years, it shows the amount and percentage increase (or decrease) in 1952 over 1951. 

Summary of internal revenue collections,' fiscal years 1951 and 1952 

General source 

Fiscal year Increase or decrease 

1951 1952 Amount Percent 

Income and profits taxes: 

Corporation 

Individual: 2 

Other

Withheld by employers 

Total individual income taxes 

Total Income and profits taxes 

$14, 387, 569,403 $21, 466, 910, 019 $7,079,340,618 49.2 

13,089, 770,178 

9, 907, 539, 091 

17, 929,046, 578 

11,345, 060, 075 

4,839, 276, 400 

1,437, 520, 984 37. 0 

14.5 

22,997,309, 269 23, 274, 106, 653 6.276, 797, 384 27. 3 

37,384, 878, 672 50, 741, 016, 672 13,358, 138, 000 35.7 

See footnotes at end of table. 

229047-58-2 3 
4 REPORT OF COMMISSIONERS OF INTERNAL REVENUE 

Summary of internal revenue collections,' fiscal years 1951 and 1952—Continued 

General source 

Fiscal year Increase or decrease (—) 

1951 1952 Amount Percent 

Employment taxes: 

013Z insurance (Federal Insurance 

testionS Act) l 

Unemployment insurance (Federal UnemployMent Tax Act) 

Carriers taxes—old-age benefits (Railroad Retirement Tax Act) 

Total employment taxes 

Miscellaneous internal revenue: 

Estate tax 

Gift tax 

Alcohol taxes: 

Distilled spirits (imported, Misr) 

Distilled Writs (domestic, exbist)... 

Distilled spirits rectification tax 

Wines__ 

Floor taxes, wines and liquors 

Bottle or container stamps 

Fermented malt liquors 

Special or occupational taxes 

Total alcohol taxes 

Wagering taxes 

Tobacco taxes 

Stamp taxes 

Manufacturers' excise taxes 

Retailers' excise taxes 

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

and repealed taxes not Dated above) 

Total miscellaneous internal revenue 

Grand total 

 93,106,547 93,106, 

12, 810, 749, 000 

236,951,546 

579, 778,133 

$3, 584.025,406 

259, 616, 431 

620, 621, 752 

1773, 276,406 

22, 669,885 

40, 843, 619 

27. 5 

9.6 

7.0 

3,627,478, 679 4,464, 263, 589 836, 784, 910 23.1 

638, 523,188 

91, 206,651 

750, 590, 517 

82, 556,471 

112, 067, 331 

—8,650,181 

17. 6 

—9.5 

172,-361, 778, 

. 574;472, 600 

38,052,750 

67, 253, 9O3 

12,124 

16,023,002 

685,008, 720 

13,623,097 

187,478,577 

1, 402, 251, 860 

31,812,387 

72,373,725 

93, 808,383 

13,393, 406 

727, 60.3, 681 

20,397, 670 

-15, 5, 116p799 

—172,220, 740 

—6,240,364 

5,119,822 

93,796, 259 

—2, 629, 596 

62, 594,961 

6,774,623 

: & 8 

—10:9 

—16.4 

7.6 

—16.4 

9.4 

49.7 

2, 546,807, 925 2, 599, 119,689 2,311,765 0.1 

1,380,396,001 

2,383,676,698 

457,011,493 

1,842, 598,464 

5,345,066 

1, 565, 162,382 

84,905,421 

2,348, 943.116 

475, 465, 936 

1.942, 126, 700 

',/: 5,345,066 

" , 189,766,381 

v „ —8, Ill, 126 

''''; —34, 733, 582 

% 18, 452,443 

99, 528, 236 

13.4 

—8.7 

—1.5 

4. 0 

5.4 

9,433,328.964 9,804,305, 298 370, 976,334 3.9 

50,445,686,315 65,009,585, 560 14,563,899, 244 28.9 

40.0.0.1ais AiNaffn ralialort the receipts from tax :(00.1dis• speCksdtaxes (such as licensing); amounts 

paid the year toward 'discharging the tax liability reported on returns filed; and collections received 

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

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

distilled spirits, judgments, offers in compromise, etc. 

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

withheld are not separated as between income tax and old-age insurance. The collections of old-age insurance tax imposed on self-emplovment income for taxable years beginning on or after January 1951, are reported in combination with individual income tax other than tax withheld. The figures shown reflect the 

estimated components of the combined amounts. 

COLLECTIONS FROM INCOME AND PROFITS TAXES 

The 1952 collections from income and profits taxes aggregated $50.7 

billion. This is $13.4 billion, or 35.7 percent, more than was collected 

in 1951. Stated another way, $13.4 billion, or 91.7 percent of the 

total increase of $14.6 billion in the 1952 collections is attributable to 

the individual and corporate income and profits taxes. 

Corporation income and profits taxes—The 1952 collections from this 

source were $21.5 billion, or $7 billion more than the 1951 fiscal year 

collections. This increase resulted in part from a record level of 

corporate profits in calendar year 1951, and in part from new tax 

legislation. 

Two separate tax acts were enacted in 1950 and one in 1951 which 

increased the 1952 fiscal year corporate tax collections over the collections in the 1951 fiscal year. First, the corporate tax increases 

levied by the Revenue Act of 1950 became fully effective on 1951 cor- 

` REPORT ON OPERATIONS 5 

porate incomes and fiscal 1952 tax collections, whereas they were only 

partly effective on 1950 corporate incomes and fiscal 1951 tax collections. Similarly, the 1952 collections were higher because the inereased corporate tax liability under the Excess Profits Tax Act of 

1950 was fully effective with 1951 profits and only partly effective 

with 1950 profits. Also, the acceleration of tax payments by corporations as provided by the Revenue Act of 1950 accounts for a part of 

the 1952 increase 7 collections. Finally, the increase in the fiscal 

year 1952 corporate tax collections is also attributable to the increase 

in corporate income tax provided by the Revenue Act of 1951. 

Individual income taxes. —The 1952 collections from the individual 

income taxes were $29.3 billion, or $6.3 billion more than in the 1951 

fiscal year. i 

The $4.8 billion increase in the 1952 fiscal year collections from 

tax withheld by employers reflects the record level of wage and salary 

payments during this- period, and also the increases in withholding 

rates from 15 'to 4S pnreent, beginning October 1, 1950, under the 

Revenue Act of 1950, and from 18 to 20 percent, beginning November 1, 

1951, under the Revenue Act of 1951. 

The $1.4 billion increase in 1952 collections from individual income 

tax not withheld also reflects the increased levels of personal income 

received by individuals, the full-year effects of the tax increases provided by the Revenue Act of 1950, and the part-yelt effects of tax 

increases under the Revenue Act of 1951. 

EMPLOYMENT TAXES 

The 1952 collections from the several employment taxes aggregated 

$4.5 billion, or $0.8 billion more than in 1951. The increase is explained by: (1) the full-year effects of the extended coverage under the 

Social Security Act Amendments of 1950, compared to the part-year 

effects on 18511-sol year collections, and (2) the record level of wage 

and salary fiapuettollaring fiscal 1952. 

insciimanzotrs INTERNAL REVENUE 

The total of miscellaneous tax collections during the 1952 fiscal 

year was $9.8 billion or about $0.4 billion more than in 1951. The 

foregoing table shows that this increase is attributable to the estate 

tax, tobacco taxes, and a variety of excises included under "other 

taxes." 

The Revenue Act -of 1951 made many increases in the excise tax 

area. The most important of these were the increases in the taxes on 

alcoholic beverages, cigarettes, gasoline, automobiles, and related 

products. With certain exceptions, these increases were made 

effective November 1, 1951. Consequently, the full-year effects will 

be realized in the tax collections of the 1953 fiscal year. Adding to 

the fiscal 1952 collections, however, were the floor-stock taxes imposed 

on tax-paid stocks of distilled spirits, beer, wine,- cigarettes, and 

gasoline held by wholesalers and retailers at places other than retail 

establishments. 

The 1951 Revenue Act also contained tax-decreasing provisions, the 

most important of which were the repeal of the electrical energy tax, 

exemption of certain items from the taxes on admissions and photographic apparatus and film, and reductions in the taxes on 

telegraph messages and manufactured tobacco. As already noted. 
878,038 1 748, 517 

5, 528 0 836 

242 227 

83,749 119,418 

52,383,403 54,602,736 

74.568 77,91P 

5, 330, 680 5,774,975 

366,870 377,340 

891,277 922.925 

10,104 7,994 

17,815 19,828 

59,842,254 62, 858, 502 

13,428,435 

24, 575 

556, 789 

82,624,960 

18,152,841 

21, 667 

577,724 

89, 295, 095 

Type of return 1951 

6 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT ON OPERATIONS 7 

the effects of these tax-decreasing provisions on collections were more 

than offset by the tax increases and the higher level of business activity during fiscal 1952 compared with thelevet in fiscal 1951. 

RETURNS FILED 

There were 89,295,005 tax returns filed in fiscal year 1952, as compared with 82,624,960 returns filed during the preceding fiscal year. 

Of the total number of returns filed 62,658,502 were income tax returns, including 5,774,975 declarations of income. The payroll tax 

returns, which totaled 16,752,232, comprised the next largest group. . 

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

part, returns for the tax year ending 6 months earlier. Returns filed 

in fiscal year 1952 are largely those filed for calendar year 1951 and 

part-year returns and fiscal-year returns fer,rwhich the filing period 

ended in the latter part of the calendar year 1051. The number also 

includes delinquent returns for prior tax years, and amended returns 

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

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

The payroll tax returns filed in the fiscal year 1952 include employers' quarterly returns of tax withheld on wages (a combined return covering both income, and Federal insurance contributions act 

taxes withheld), employers' quarterly returns of railroad retirement 

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

eight or more individuals. 

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

type of return for fiscal years 1951 and 1952. 

Number of returns filed during fiscal years 1951 and 1952 

1952 

Income taxes: 

Corporation: 

Income and profits 

Personal holding companies 

Army and Navy contracts 

Exempt organizations 

maiCidual: and resident aliens 

Nonresident aliens 

Declaration of Income 

Fiduciaries 

Partnerships 

Withholding agents 

Other 

Total income tax returns 

Payroll taxes: 

Withheld Income and old-age insurance 

Carriers 

Unemployment insurance 

Total payroll tax returns 

Estate tax 

Gift tax 

Miscellaneous taxes 

Spacial taxes 

All other 

Grand total 

I The Revenue Act of 1951 provided for several new taxes, the returns for'wkiith are 'shown for the first 

time in the 1962 figures. These new returns shown in 1952 include the follow fuel, 38,558; wagering 

excise, 39,472; wagering special, 18,550; floor taxes on cigarettes, distilled spirits. gasoline, 847,053. 

z Increase over 1951 is due primarily to filing of second returns by Corporatinnwhose first returns were 

invalidated by Excess Profits Tax Act of 1950 and Revenue Act of 1951. 

ENFORCEMENT WORK 

RETURNS EXAMINED 

General.—Our national tax system is characterized by an exceptionally high degree of voluntary tax compliance,- with the overwhelming 

majority of_ taxpayers responding conscientiously to their obligations 

under the tax laws enacteffiby -the Congress. If this were not so, the 

tax enforcement problems facing the Internal Revenue Service would 

be greater both in amount and difficulty, and together with the 

additional administrative burdens which would be imposed, would 

present a task manifestly impossible to accomplish with the Bureau's 

available resources. 

Although, it is unnecessary to make a thorough examination of all 

of the 90 million tax returns filed, it is incumbent upon the Bureau to 

insure maximum compliance with the tax laws. To this end, those 

returns believed to be most in need of correction, are segregated 

through a preliminary inspection process, and as many are examined 

each year as the Bureau's resources will permit. 

Mathematical verification.—The first step in determining the 

accuracy of the tax returns is a verification, by calculating machine 

-operators

' 

 of the taxpayers computations. In this step there is no 

attempt to make corrections which require statutory notices of 

deficiency, such as the disallowance of exemption for dependents, 

travel expenses, erroneous deductions, etc. Therefore, the notices 

sent to taxpayers with respect to such corrections state that the 

adjustment is the result of a mathematical verification of the return 

and that if subsequent audit discloses that additional information is 

necessary or further changes must be made, the taxpayer will be duly 

Advised. 

The mathematical verification is not always a preliminary action 

but is sometimes deferred and combined with subsequent examination. 

When that is done, of course, the mathematical errors are included in 

the notice of adjustment sent to the taxpayer, as part of the over-all 

proposed deficiency or overassessment. 

There is no mathematical verification with respect to individual 

income tax returns filed on Form 1040-A. This is due to the fact that 

the tax computations on such returns are not made by the taxpayers 

but by Internal Revenue personnel. 

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

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

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

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

examined which upon preliminary inspection indicate the largest 

potential deficiency or overassessment of tax. A preliminary inspection of more than 74 million returns of all types was made in the 

fiscal year 1952 to select those to be examined, and of this number, 

4,564,673 were selected for examination. 

Included in the returns selected for examination were those returns 

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

mandatory adjustments. Other returns were selected through a procedure involving close inspection of each return to discover indications 

of potential error in certain areas where past experience indicates that 

errors commonly occur. 
8 REPORT OF 0EANUSSIONER OF INTERNAL REVENUE 

An additional group of returns was selected on a scientific sample 

basis by the Statistical Division in Washington from returns forwarded by the field for the regular compilation of statistical data. 

This selection is part of the Bureau's audit control program, which was 

begun in 1949 as a means of increasing the effectiveness of audit and 

investigative techniques; of achieving the maximum possible enforcement coverage with available personnel; and of bringing within the 

scope of examination a number of taxpayers whose returns might not 

have been selected under other methods. 

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

audit of a tax return which involves contact with the taxpayer or his , 

representative. Examinations are of two types—office audits and 

field examinations. The former involve contact with taxpayers 

through correspondence or interview on Internal Revenue premises, 

while the latter involve examination of theapayartabooks, records, 

bank accounts, etc., in his home or place of business. Returns of 

greater complexity and those involving the larger businesses usually 

require field examination. 

Where an examination discloses liability for additional payroll or 

excise tax, a supplemental return is prepared covering the additional 

tax. If overpayment of such taxes is determined, the taxpayer is 

advised to take credit for the amount in returns to be filed for subsequent periods or, if the amount is in dispute, to file a claim for refund. . 

Where an apparent deficiency or overpayment of income, profits, 

estate or gift taxes has been determined and the taxpayer has not 

submitted a signed agreement to the examining agent, a 30-day 

preliminary notice of adjustment is forwarded to the taxpayer accompanied by a copy of the audit report. This notice afforda the taxpayer 

a period of 30 days in which to sign an acceptrtnee or submit a protest 

requesting a conference under the appellate procedures described on 

pages 21-

25. If the adjustment results in an overassessment and the 

taxpayer signs an acceptance or fails to respond to the 30-day notice, 

the overassessment is scheduled for refund or abatement. 

Where the adjustment involves a deficiency in income, profits, 

estate or gift taxes and the taxpayer fails to respond to the preliminary 

notice, a 90-day statutory notice of deficiency is issued. If the 

taxpayer signs an agreement, or fails to respond to the statutory 

notice within the 90-day period, the deficiency is listed for assessment. 

However, if the taxpayer appeals to The Tax Court of the United 

States for a redetermination of the tax, assessment of the deficiency is 

deferred pending final determination of tax liability (see pages 23-24). 

The following table shows the number of returns examined during 

the fiscal years 1951 and 1952 by type of return. 

REPORT ON OPERATIONS 9 

Examination of tax returns, fiscal years 1951 and 1958 

Type of return 

Number of returns examined 

Total Additional tax No change or overassessment 

1951 1952 1951 1952 1951 1952 

Income and profits tax: 

Corporations: 

Income 

Excess profits 

Individual 

Partnership 

Total income and profits tax. 

Other than income and profits tax: 

Estate aud gift 

Miscellaneous 

Total other than income and profits 

Grand total 

197,198 

16, 583 

8,861, 

65, 98

101

5 

146.711 

7, 227 

3,555,265 

49, 870 

81,901 

128 

1, 939,

5, 

 719 

(2) 

65,157 

2, 55 

1,830,6

4

13 

115, 297 

11, 457 

1, 921,382 

55, 985 

81, 554 

4, 772 

1,724.652 

49, 870 

4,130,867 3, 75%073 3024746 I, 898, 225 2,104,121 1, MO, 848 

56,110 

195, 587 

59, 989 

235, 464 

14, 688 

155,725 

14,999 

190, 722 

41, 422 

39, 862 

44,990 

44, 742 

251,097 295, 453 17%418 205, 721 81,284 89, 732- 

4,382, 564 4.054, 526 2,197,159 2,103,946 %185, 405 1,950,580 

Revenue Act of 1940. 

*Adjustments to partnership Income are reflected In the income tax returns of the partners. 

FRAUD INVESTIGATIONS 

In addition to the regular examination of returns, special considera 

tion is given to returns of taxpayers who attempt to evade the tax 

properly due from them. Where fraud is suspected, the returns are 

subjected to a joint investigation with special agents to determine if 

fraud is involved and the extent of the fraud. This fraud work is 

reported on a case basis rather than on number of returns as regular 

examinations are reported. A case may involve several returns of 

one taxpayer and/or returns of several taxpayers. (These returns 

are included in the examinations shown in the foregoing table.) 

A total of 3,872 suspected fraud cases were disposed of in 1952. 

A breakdown of this total shows that 1,247 cases were referred to the 

Chief Counsel's field offices with recommendations for prosecution; 

fraud penalty but no prosecution was recommended in 1,597 cases; a 

deficiency but no fraud penalty was recommended in 263 cases; 132 

cases were closed without change; and 633 cases were found not to 

warrant a fraud investigation. A table showing the fraud cases 

included in the examination work for fiscal years 1951 and 1952 

follows: 
Item 

Increase or 

decrease (—) 

1951 1952 

Number Percent 

Pending, beginning of period 

Receipts 

Total disposals (action recommended) 

Prosecution 

Fraud penalty (no prosecution) 

Deficiency (no fraud penalty) 

No change 

Fraud investigation not warranted 

3, 219 3, 363 144 4. 5 

3, 339 4,162 823 24. 6. 

3,195 3, 872 677 21.2 

699 1,247 638 104.8 

1, 886 1,597 —289 —15.3 

294 263 —31 —10.5 

58 132 74 127.6 

348 633 265 81.9 

10 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Progress in disposition of cases involving suspected fraud, during fiscal years 1951 

and 1952 

Pending, end of period 3, 383 3, 653 290 8.6 

While many fraud cases are discovered in the routine examination 

of returns, special attention is given the returns of persons allegedly 

engaged in illegal activities to see that they comply fully with the 

law. To insure that these returns receive special attention, the best 

qualified investigative personnel in the Bureau have been assigned to 

them. 

The investigative personnel assigned to this work has varied between 

1,800 and 2,300. Groups of these men, known as "racket squads," 

were welded into coordinated forces within each of the major field 

offices of the Bureau. Within their respective geographic areas these 

several squads were placed under the over-all direction of special 

agents in charge, Intelligence. In order to facilitate the national 

effort, seven regional coordinators were designated to serve as liaison 

officers between the field offices and the Director of the Special Tax 

Fraud Drive. 

On July 1, 1951, the master lists compiled from all available sources 

contained names of 27,734 individuals who were allegedly engaged in 

illegal activities and were therefore scheduled for investigation. Although 19,489 cases were closed during the fiscal year, many new 

cases were added, and there were still 20,723 cases awaiting final 

investigative action at the close of the year. (These cases are included 

in the table relating to regular examinations and, if fraud is suspected, 

in the table relating to fraud cases.) 

Since the passage of the wagering tax law, many cases involving 

violations of this law have been the subject of fraud investigation. 

During the period November 1, 1951, through June 30, 1952, a total 

of 881 cases in this category have been investigated for fraud, of which 

525 have been referred to the field offices of the Chief Counsel with 

recommendations for prosecution. 

On January 5, 1952, the Attorney General of the United States 

requested the impaneling of special grand juries in each judicial 

district, for the purpose of surveying the conditions of organized 

crime throughout the United States. In order to give full cooperation 

to this action the Bureau designated a special agent in each of the 

REPORT ON OPERATIONS 11 

93 judicial districts to act in a liaison capacity between its field offices 

and the special grand juries. The racket squads' participation in this 

Nation-wide investigation of organized crime has aided considerably 

the achievements of many of the special grand juries. 

ALCOHOL AND TOBACCO TAX REGULATORY WORK 

General.—The Internal Revenue Service is charged with the administration and enforcement of the laws and regulations relating to 

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

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

over 500,000 individuals or firms operating under the internal revenue 

alcoholic beverage laws and over 4,000 dealers and manufacturers 

of tobacco or tobacco products. It also involves the detection and 

seizure of installations operating illicitly to evade the taxes imposed 

by these laws, as well as the detection and arrest of persons engaged 

in the illicit operations. 

The alcohol and tobacco tax activities of the Internal Revenue 

Service are summarized in the following paragraphs. More detailed 

data with respect to such operations appear in the Alcohol section 

of the Appendix. 

Liquor plants and permittees.—Qualification under the internal 

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

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

On June 30, 1952, there were authorized to operate a total of 2,016 

registered and fruit distilleries, internal revenue bonded warehouses, 

industrial alcohol plants and warehouses, denaturing plants, rectifying 

plants, tax-paid bottling houses, wineries, breweries, vinegar plants, 

and fruit-flavor concentrate plants as compared with 2,102 as of June 

30, 1951. This represents a decrease of 86 establishments. As of 

June 30, 1952, there were 488,969 wholesale and retail dealers, as 

compared with 483,967 a year ago, representing an increase of 5,002 

dealers, or 1.0 percent. The total number of plants and permittees of 

all classes, as of June 30, 1952, was 507,747 as compared with 502,818 

a year ago, representing an increase of 4,929 or 1.0 percent. A table 

showing the number for arch class, by States, as of June 30, 1952, 

is included in the Appendix. 

Production of distilled spirits.—The total production of all distilled 

spirits for the fiscal year 1952 (by registered and fruit distilleries) 

amounted to 221,865,781 tax gallons, as compared with 401,452,796 

tax gallons produced during the preceding fiscal year. The production of whisky for 1952 amounted to 103,543,953 tax gallons, as 

compared with 205,702,460 tax gallons for the preceding year. 

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

production during the preceding year in the following table: 
12 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Production of distilled spirits, fiscal years 1951_and 1955 

Tax gallons produced Change 

Kind of spirits Fiscal year 

1951 

Fiscal year 

1952 Amount Percent 

By registered distilleries: 

rhisky: 

Bourbon 

Rye 

Corn 

Scotch-type 

Other : 

Total 

Brandy 

Rum: 

Beverage 

Industrial 

Total 

Gin 

Vodka 

Spirits 

Total 

By fruit distilleries: 

Brandy 

Spirits 

Total 

Grand total 

147,630, 180 

17, 341, 662 

35, 246, 437 

5, 407,188 

76,993 

84,025,801 

9, 517, 107 

9,273,156 

727,889 

—63,604,379 

—7,824, 555 

—25,973, 281 

—76, 993 

—4,679,289 

row 

1egg I I 1 7 I 

205, 702,480 

184, 655 

240, 828 

1,789,354 

103, 543,953 

3, 270 

148.499 

1,763,339 

—102,158, 

 158, 507 

385 

—92,327 

—26,015 

—49. 7 

—98.2 

—38.3 

—1.5 

8, 

2.030, 180 

962, 289 

148, 101 

148,264,970 

1,911, 838 

8,156,782 

362,007 

62,814, 538 

—118,342 

—805, 507 

+213,906 

—85,450,434 

—5.8 

—9.0 

+144. 4 

—57.6 

365,292,655 176,792,386 —188, 500, 269 —51.6 

11,399,831 

24, 760, 310 

9, 517, 770 

35, 555,625 

—1,882,061 

+10, 795,315 

—18.6 

+43. 6 

38,160, 141 45,073, 395 +8,913,254 +24. 6 

401, 452, 796 221,865,781 —179,587,015 —49.7 

t Represents bourbon mash whisky, rye mash whisky, etc., so designated by virtue of being packaged 

in re-used cooperage. 

Tax-paid withdrawals of distilled spirits.—The internal revenue 

tax must be paid on all alcoholic liquors withdrawn for domestic 

beverage use. Tax is also paid on distilled spirits withdrawn for use 

in the manufacture of certain nonbeverage products such as medicinal 

preparations, flavoring extracts, etc. The total tax-paid withdrawals 

of all distilled spirits (including alcohol) amounted to 141,790,630 

tax gallons during the fiscal year 1952, as compared with 174,625,188 

tax gallons for 1951. 

Tax-free withdrawals of distilled spirits:—The law permits alcoholic 

liquors to be removed free of tax under certain conditions. Generally, 

tax-free withdrawals may be made for export, for use of the United 

States, for hospital and experimental purposes, etc. During the 

fiscal year 1952 a total of 52,880,182 tax gallons of distilled spirits 

were withdrawn tax-free, as compared with 45,080,342 tax gallons 

for 1951. 

Included in the total tax-free withdrawals were 38,262,302 tax 

gallons of distilled spirits (spirits—fruit and brandy) for fortification 

of wine, as compared with 32,063,968 tax gallons in 1951. 

There were 8,852,680 tax gallons of distilled spirits withdrawn for 

use of the United States, as compared with 9,532,295 tax gallons 

during 1951. This included 8,784,417 tax gallons of spirits in 1952 

for use by Government-owned plants in the production of butadiene 

for the synthetic rubber program, as compared with 9,509,670 tax 

gallons for this purpose during 1951. 

Transfers in bond of distilled spirits to industrial alcohol plants 

and bonded warehouses.—Under authority of Treasury Decision 5864, 

REPORT ON OPERATIONS 13 

effective November 7, 1951, issued pursuant to House Joint Resolution 73 (Public Law 76, 82d Cong.) there were transferred 11,269,533 

tax gallons of distilled spirits from registered distilleries and internal 

revenue bonded warehouses to industrial alcohol plants and industrial 

alcohol bonded warehouses. After transfer these spirits are not 

separately reported but are included in statistics as alcohol. 

Production of rectified products.—The total tax-paid domestic and 

imported distilled spirits and wines used in the production of rectified 

products during the fiscal year 1952 amounted to 94,041,702 proof 

gallons, consisting of 29,392,847 proof gallons of whisky, 40,275,918 

proof gallons of spirits, 20,444,551 proof gallons of alcohol, and 

3,928,386 proof gallons of other materials. 

The total production of rectified products for the fiscal year 1952 

amounted to 93,927,938 proof gallons, consisting of 83,145,894 proof 

gallons of whisky, 4,109,710 proof gallons of gin, 3,482,925 proof 

gallons of cordials and liqueurs, and 3,189,409 proof gallons of other 

products. The total rectified production in 1951 was 122,373,347 

proof gallons. (Included in the Appendix are data covering production of rectified products and showing quantities of domestic and 

imported spitittand wives used therein.) 

Consumption -o ilisttlled spirits.—The total distilled spirits bottled 

during the year (exclusive of distilled spirits bottled for exportation) amounted to 1591 687,467 wine gallons, of which 109,169,682 

wine gallons were rectified products, 41,435,431 wine gallons were 

unrectified products (other than bottled-in-bond), and 9,082,354 

wine gallons were bottled-in-bond products. This compared with a 

total of 195,068,320 wine gallons bottled during the fiscal year 1951. 

Stocks of distilled spirits.—The total stocks of whisky, brandy, 

rum, gin, vodka, and spirits as of June 30, 1952, amounted to 

937,156,333 original tax gallons, as compared with 901,106,188 original tax gallons as of June 30, 1951, an increase of 4.0 percent. The 

stocks of whisky increased from 751,233,178 original tax gallons as of 

June 30, 1951, to 767,557,977 original tax gallons as of June 30, 1952, 

or 2.2 percent. The stocks of whisky 4 years old or older amounted 

to 196,389,534 tax gallons as of June 30, 1952, as compared with 

155,564,166 tax gallons as of June 30, 1951, an increase of 26.2 percent. 

The stocks of spirits increased from 134,816,711 original tax gallons 

as of June 30, 1951, to 151,959,204 original tax gallons as of June 30, 

1952, or 12.7 percent. 

Fermented malt liquors.—Production of fermented malt liquors 

during the fiscal year amounted to 89,600,916 barrels, or 0.7 percent 

more than the preceding year (88,976,226 barrels). Tax-paid withdrawals were 84,293,646 barrels, or 1.3 percent more than the preceding year (83,246,162 barrels). Tax-free withdrawals for export 

were 1,143,551 barrels, an increase of 284,297 barrels as compared 

with the fiscal year 1951. 

Wines.—Production of still wines amounted to 169,121,331 wine 

gallons, 24.1 percent more than the preceding year (136,300,127 

wine gallons). Tax-paid withdrawals of still wines amounted to 

121,808;732 wine gallons, 1.2 percent less than the preceding year 

(123,253,307 wine gallons). Tax-paid withdrawals of domestic 

sparkling wines amounted to 22,500,104 half-pint units, a decrease 

of 5.4 percent from the preceding year (23,789,448 half-pint units). 
14 REPORT OF COMMISSIONER. OF INTERNAL REVENUE 

Tax-paid withdrawals of vermouth produced at wineries amounted to2,744,432 wine gallons, an increase of 2.7 percent from the preceding 

year (2,673,420 wine gallons). Tax-paid withdrawals of aperitif 

wines produced at wineries amounted to 217,975 wine gallons as 

compared with 234,881 wine gallons for the preceding year. 

Production and importation of ethyl alcohol.—The total ethyl alcohol 

production for the year amounted to 467,389,720 proof gallons, as 

compared with 444,935,011 proof gallons for 1951, an increase of 5.0 

percent. The total withdrawals from customs custody for the fiscal 

year 1952 amounted to 131,831,458 proof gallons as compared with 

200.379,401 proof gallons for 1951, a decrease of 34.2 percent. 

Tax-free withdrawals of ethyl alcohol.—Primarily, alcohol withdrawn 

tax-free is for denaturation. The total tax-free withdrawals of ethyl 

alcohol during the year, amounted to 608,847,206 proof gallons of 

domestically produced ethyl alcohol (including imported alcohol 

mingled with domestic alcohol). 

The total quantity of domestic and imported ethyl alcohol withdrawn for denaturation during the year amounted to 489,788,861 

proof gallons as compared with 455,999,873 proof gallons for 1951, 

an increase of 7.4 percent. (This represents the quantity of domestic 

and imported alcohol, and spirits produced by registered distilleries 

and redesignated upon receipt at denaturing plants as alcohol, which 

was actually used at denaturing plants for denaturation.) The total 

quantity of domestic and imported ethyl alcohol withdrawn for use 

of the United States amounted to 116,536,570 proof gallons, of which 

114,273,530 proof gallons were withdrawn tax-free for use by Government-owned plants in the production of butadiene for the synthetic 

rubber program. During the year 2,336,133 proof gallons of domestic 

ethyl alcohol was withdrawn for hospital.? scientific, and educational 

use. 

Production of denatured alcohol.—During the year there were 

produced 261,500,458 wine gallons of specially denatured alcohol, as 

compared with 243,998,614 wine gallons for the fiscal year 1951; and 

993,027 wine gallons of completely denatured alcohol, as compared 

with 1,438,564 wine gallons for the fiscal year 1951. The total production was 262,493,485 wine gallons, as compared with the total' 

production of 245,437,178 wine gallons for 1951. 

The quantity of specially denatured alcohol used in the manufacture 

of synthetic rubber amounted to 72,682,818 wine gallons for the fiscal 

year 1952, as compared with 17,415,696 wine gallons for 1951. 

Tax-paid withdrawals and stocks of ethyl alcohol.—During the year, 

tax-paid withdrawals of ethyl alcohol amounted to 27,693,219 proof 

gallons, as compared to 42,824,251 proof gallons for 1951. 

As of June 30, 1952, the stocks of domestic and imported ethyl 

alcohol amounted to 88,376,108 proof gallons, as compared with 

118,766,184 proof gallons as of June 300051, a'- decrease of 25.6 

percent. Transfers in bond of ethyl alcohol to registered distilleries and internal 

revenue bonded warehouses.—Under authority of Treasury Decision 

5864, effective November 7, 1951, issued pursuant to House Joint 

Resolution 73 (Public Law 76, 82d Cong.), there were transferred 

11,641,154 proof gallons of domestic ethyl alcohol from industrial 

alcohol plants and industrial alcohol bonded warehouses to registered 

IMPORT ON OPERATIONS 15 

distilleries and internal revenue bonded warehouses. After transfer 

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

spirits. • 

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

process for the fiscal year 1952 amounted to 9,327,613 gallons (100-

grain strength) as compared with 8,884,283 gallons for the fiscal year 

1951. 

Production of volatile fruit-flavor concentrates.—The production of 

volatile fruit-flavor concentrates for the fiscal year 1952 amounted 

to 345,312 wine gallons as compared with 387,980 wine gallons for 

the fiscal year 1951. 

Laboratory activities.—The laboratory performs all the chemical 

research and laboratory work for the Bureau of Internal Revenue and 

analyzes samples submitted by the Bureau of Narcotics. It also 

collaborates with the Association of Official Agricultural Chemists in 

developing and selectirr,g methods of analysis for official adoption. 

The United States raid and Drug Administration, Bureau of Customs, 

Department of Commerce, Tariff Commission, The Committee of 

Revision for the Pharmacopeia of the United States, The Committee 

on National Formulary, members of Congress, and representatives of 

other nations often confer with the Bureau's laboratory personnel. 

Collaborative work is done with the United Nations to improve the 

methods of assaying opium and to determine the country of origin. 

The field laboratories received during the fiscal year 40,707 samples, 

which is 2,494 more than during the preceding year. The field chemists spent 1,034.0 days in court and 205.9 days in inspections, which is 

435.2 more than the preceding year. Of the samples examined by the 

field laboratories, 37.7 percent were narcotics. The Washington laboratory received 4,472 samples, 828 more than during the preceding 

year. 

Inspection astirititts.—Ittspentietis of plants and permittees by field 

office personnel during the year totaled 138,941 of which 2,753 were 

made pursuant to original applications filed by persons entering the 

beverage or industrial alcohol industries. There were 2,563 tobacco, 

cigar and cigarette, and tobacco products factories and storage 

warehouses inspected during.the year. 

Final administrative review of the action taken with respect to 

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

establishments, discontinuarrees, changes in premises, equipment, and 

personnel, was given 20,630 items, an increase of approximately 

3,000 over the preceding year. 

Basic permits.—The Federal Alcohol Administration Act requires all 

distilled-spirits bottlers, rectifiers, and wine blenders, as well as producers (other than brewers)', importers, and wholesalers of alcoholic 

beverages to secure basic permits. The number of outstanding basic 

permits of all classes in effect on June 30, 1952, totaled 17,105 as 

compared with 17,686 in effect at the end of the preceding year. 

Tables reflecting permit activity under the Federal Alcohol Administration Act during the year, and showing the number of permits of 

each class in effect on June 30, 1952, by States, are included in the Appendix. 
16 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

All basic permit application forms were revised to require applicants 

to submit more detailed information respecting their business histories, 

financial standings, and reputations as law observers. As a further 

safeguard, new procedures were devised to permit the Washington 

headquarters office to post-audit all original permit issuances by the 

district offices. In addition, there has been published in the Federal 

Register a notice of the proposed amendment of the procedural 

regulations to make available to the general public certain data with 

respect to applicants for basic permits. 

Labels.—The Federal Alcohol Administration Act provides that no 

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

remove from customs custody for consumption, any distilled spirits, 

wine, or malt beverages, unless he has obtained and has in his possession a certificate of label approval, or certificate of exemption from 

label approval, covering the labels affixed to the products domestically 

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

malt beverages, the labeling requirements of the Act are applicable 

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

beverages are introduced are similar to the Federal malt beverage 

labeling requirements. During the year, 33,575 applications were 

received as compared with 36,173 applications received during the 

fiscal year 1951. A table, showing the volume of work handled in this 

field during the year, appears in the Appendix. 

Advertising.—For the purpose of determining compliance with the 

advertising provisions of the Federal Alcohol Administration Act and 

regulations issued thereunder, 153,153 alcoholic beverage advertisements, appearing in 30,275 publications, were reviewed during the 

year. Radio continuities numbering 5,700 and 3,926 pieces of " pointof-scale" advertising material were also examined Regulatory action 

of a corrective nature was taken in 964 cases where minor technical 

irregularities were observed. Five cases involving more serious 

irregularities were closed upon the acceptance of offers in compromise. 

As a service to the industry and to forestall the dissemination of 

improper advertisements, the division reviewed and commented upon 

2,893 advertisements or advertising campaigns prior to publication. 

Trade practices.—Administrative proceedings, looking toward the 

possible suspension of the basic permits of three wholesale liquor 

dealers, were instituted on charges of violations of the terms and conditions of their basic permits through unlawful "tie-in" sales of illstilled spirits. One of the proceedings culminated in a 15-day permit 

suspension to take effect in July 1952, the other two are pending 

before hearing examiners. Four other basic permits were suspended 

for varying periods and one was revoked for violations of the Federal 

Alcohol Administration Act and the internal revenue laws. Fourteen permits were revoked, as required by law, because the holders 

thereof had not engaged in operations for more than .2 years; 4 permits were annulled; and 128 cases (76 involving .unlawful operations 

without permits, 26 involving trade practice 'violations, and 26 involving labeling violations) were closed upon the acceptance of offers 

in compromise, pursuant to section 7 of the Federal Alcohol Administration Act. 

REPORT ON OPERATIONS 17 

Interlocking directorates.—Eighty-five interlocking directorate appli- cations.

, submitted pursuant to section 8 of the Federal Alcohol 

Administration Act, were received and approved. 

Seizures and arrests.—Violations of the internal revenue liquor laws, 

as reflected by enforcement statistics for the number of stills and 

gallons of mash seized, continued to increase. This upward trend 

was first observed in December 1947 following the abandonment of 

sugar rationing in June of the same year. The increase m violations 

has been confined principally to the Southern States and a few metropolitan areas on the east coast. The underlying reason for the large 

volume of violations in the Southern States is the preponderance of low 

income groups which furnish the demand for cheap spirits, coupled 

with the fact that more than 40 percent of the population is located 

in local option counties, where tax-paid liquor is not readily available. 

During the fiscal year 10,269 illicit stills were seized, together with 

5,700,599 gallons of mash, 160,738 gallons of illicit liquors, and 2,183 

automobiles and trucks valued at $2,817,032. In connection with 

the seizures of automobiles and trucks, 124 administrative petitions 

for remission or mitigation of forfeiture were processed and disposed of. 

There were 9,851 persons arrested for violations of the internal 

revenue liquor laws, and recommendations were made for the prosecution of 8,250 persons in Federal courts in alcohol tax cases, a decrease 

of 783 or 8.7 percent as compared with 1951. 

The following table summarizes seizures and arrests for liquor law 

violations during the fiscal years 1948 to 1952: 

Seizures and arrests for liquor law violations, fiscal years 1948-1955 

Fiscal year Number 

of 

stills 

Gallons 

of 

mash 

Number of 

cars and 

trucks 

Number of 

persons 

arrested 

1948 

1949 6, 757 2, 715 801 1, 177 7.640 

1950 8.008 3, 661, 432 1, 596 8, 915 

1951 10,030 4, 892,698 2, 074 10, 236 

1952 10,177 5, 545, 411 2, 246 10,384 10, 269 5, 700, 599 2, 183 9,851 

There were 3,540 floor stocks tax cases perfected from November 1, 

1951, the effective date of the Revenue Act of 1951, through June 30, 

1952, involving the seizure of 40,754 gallons of tax-paid liquors valued at $941,575. 

On April 5, 1951, enabling legislation enacted by the legislature of 

the State of Oklahoma was signed by the Governor entitling the State 

to protection under the Liquor Enforcement Act of 1936 on the part 

of the Federal Government. The Act prohibits importation or the 

attempt to import liquors into a dry State unless in accordance with 

the provisions of the State law. As a result of enforcement activities 

in Oklahoma under this Act during the fiscal year, 47 persons were 

arrested, and 40 vehicles and 1,525 wine . gallons of tax-paid spirits valued at $81,267, were seized. 
IS REPORT OF COMNIRMIONER OF INTERNAL REVENUE 

• 

Tobacco activitita—Tobacco activities involve administration of the laws and regulations relating to (1) the purchase, sale, and movement 

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

chewing and smoking tobacco, snuff, cigars, cigarettes, and cigarette papers and tubes; (3) the collection of the taxes imposed on such 

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

payment of tax, for export, for use as sea stores, for use of the United 

States, and for other tax-exempt purposes. 

Detailed statistics covering the manufacture, removal, and importation of manufactured tobacco, snuff, cigars, and cigarettes, the receipt, shipment, and use of leaf and other tobacco materials, and the 

removal of domestic and imported cigarette papers and tubes, will be 

found in tables which appear in the Appendix. 

Firearms program.—In September 1945 an intensive investigative 

program was started for the purpose of bringing about the registration of machine guns, machine pistols, and other firearms coming 

within the purview of the National Firearms Act. This program was 

necessitated by the fact that a large number of these firearms brought 

or sent to this country by members of the armed services were finding 

their way into the hands of criminals, by either illegal sale or theft, 

and were being utilized in the commission of violent crimes. 

As of June 30, 1952, a total of 107,321 investigations had been 

conducted, resulting in the registration with the Commissioner of 

Internal Revenue of 16,285 firearms. During the fiscal year 175 1952, cases involving violations of the Firearms Act were submitted 

to the Department of Justice for prosecution. 

LEGAL WORK ON CRIMINAL CASES 

Special agents' recommendations for criminal prosecution are forwarded to the regional or district offices of the Chief Counsel of the 

Bureau for decision as to whether institution of criminal proceedings is 

to be recommended to the Department of Justice. This procedure 

obtains for practically all classes of internal revenue taxes, including 

income, profits, estate, gift, and most miscellaneous taxes with the 

principal exception of alcohol and tobacco taxes. (As regards criminal cases involving violations of the internal revenue laws relating to 

distilled spirits and tobacco, the Liquor Enforcement Act of 1936, the Federal Alcohol Administration Act, and various laws relating to firearms, the Chief Counsel's Office does not pass upon the reference of the 

case to the Department of Justice but does assist in the prosecution of 

the case.) Law and fact letters or criminal reference reports are prepared to accompany those cases which are forwarded to the Department of Justice for criminal prosecution. Since January 8, 1952, 

criminal tax cases other than wagering occupational tax cases, have 

been referred directly to the Department of Justice in Washington by 

the regional and/or district penal counsel. Wagering occupational tax 

cases are referred directly to the various United States attorneys by 

regional and/or district counsel The Chief Counsel also considers 

REPORT ON OPERATIONS 19 

offers in compromise in cases where criminal prosecution has been 

recommended or criminal proceedings have been instituted; prepares 

opinions construing the criminal and percentage penalty statutes; and 

handles miscellaneous law questions involving criminal cases. At the 

request of the Department of Justice or United States attorneys legal 

assistance is furnished in grand jury investigations; in preparation and 

trial of criminal tax cases; and in preparation of briefs on appeal. 

During the year 1,414 cases involving 1,529 defendants and relating 

principally to income and wagering tax violations were transmitted 

to the Department of Justice. Of these cases 1,284 were recommended for prosecution, and in 130 prosecution was not recommended. Included in the cases referred to the Department of Justice 

were 649 in the racketeer class, of which 426 were wagering tax cases. 

The Chief Counsel's office concluded against recommending prosecu- tion in 269 cases. There were 1,830 cases received in connection with 

criminal tax fraud matters (exclusive of alcohol and tobacco tax cases); 

1,079 cases were closed; and at the end of the year the closing inventory 

totaled 2,473 cases, of which 1,693 were awaiting prosecutive or 

closing action in the Department of Justice or the courts. The Department of Justice returned 68 cases without prosecution. 

Indictments were returned against 1,063 defendants, and the grand 

juries refused to indict 27 defendants. In the cases reaching the trial 

stage 74 defendants were convicted; 489 defendants in 446 cases entered pleas of guilty or nob contendere; indictments involving 72 de- fendants in 46 cases were dismissed or nol prossed; and 26 defendants in 10 cases were acquitted. 

The record on racketeer cases shows that indictments have been 

returned in 274 cases involving 392 defendants, and convictions were 

received in 133 cases involving 229 defendants. At the close of the 

year 393 wagering tax cases were pending with the Department of 

Justice and United States attorneys. Of the wagering tax cases 

closed by the Department of Justice, more than 60 percent were disposed of by pleas of guilty or nob contendere. 

In internal revenue liquor law violation cases prosecuted during 

the fiscal year, 6,109 persons were indicted and 5,122 persons convicted. 

As of the close of the fiscal year 3,876 persons were awaiting grand 

jury action, and 1,611 persons were awaiting trial. 

DELINQUENT RETURNS AND COLLECTION OF DELINQUENT ACCOUNTS 

Delinquent returns.—In addition to examination of returns timely 

filed, the enforcement work includes the securing and examination 

of returns in cases where returns were not timely filed. As a result 

of this work there were 1,352,128 delinquent returns secured in fiscal 

year 1952, reporting tax liability of $163,163,178. This amount is included in the additional assessments shown on page 26. 

The number of delinquent returns secured during fiscal 1952, 

together with amounts collected or reported for assessment, are 

compared with those for the preceding fiscal year in the following table: 

229047-53-3 
Amount collected or re- Number ported for assessment 

Type of tad 

Fiscal year 

1951 

Fiscal year 

1952 

Fiscal year 

1951 

Fiscal year 

1952 

Income 

Payroll 

Miscellaneous 

$27, 820, 250 

89, 782, 808 

26, 950, 004 

$28, 837, 343 

106,331.943 

27, 993, 892 

59,246 

798,778 

839,255 

61,629 

598 010 

692, 489 

Total 1,697, 279 1, 352, 128 144,553, 062 163, 163, 178 

20 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Delinquent returns secured during fiscal years 1951 and 1952 

Warrants for distraint.-Taxes are listed for assessment by internal 

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

result of the disclosure of additional tax liability subsequent to the 

filing of the original return. After certification of the lists, notices 

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

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

after the notice has been issued, it is lawful for the collector (director) 

of internal revenue or his agent to collect the taxes, with such interest 

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

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

the payment of these taxes. 

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

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

seal of the collector (director), sets forth all of the facts regarding the 

account of the taxpayer and authorizes the performances of such acts 

as necessary, within the requirements of law, to satisfy the taxes as 

shown in the statement of account. 

In the fiscal year 1952, there were collected 1,389,297 distraint 

warrants involving $455,752,213 in past due tax liability. A breakdown of these totals by kinds of tax involved discloses that 1,035,697 

warrants in the amount of $331,346,953 involved income tax; 303,205 

warrants in the amount of $104,905,033 involved withholding and 

employment taxes; and 50,395 warrants in the amount of $19,500,227 

involved miscellaneous taxes including taxes on distilled spirits. 

There were 151,938 distraint warrants involving $51,066,513 reported uncollectible in 1952; while 892,662 warrants totaling $692,177,-

450 were pending collection at the end of the year. Part payments 

were being made on 228,622 of those pending. 

The following table shows comparative data on warrants for distraint for the fiscal years 1949 through 1952: 

Warrants for distraint 

Fiscal year 

Collected Returned as uncollectible On hand, end of period 

Number Amount Number Amount Number Amount 

1949 

1950 

1951 

1952 

1,432, 541 

1, 317, 879 

I, 341, 237 

1, 389, 297 

$346, 509.480 

368, 384, 768 

376, 506, 016 

455, 752, 213 

222, 511 

237,367 

198, 380 

151, 938 

$33, 500, 793 

50, 027,059 

55,967, 858 

51,066, 513 

1, 010, 810 

848,744 

823,027 

892, 662 

$540,483,060 

526, 121,823 

545, 885, 694 

692,177, 450 

Collection through litigation, by claims in noncourt proceedings, and 

through discharges of liens.-Where individuals, corporations, or other 

REPORT ON OPERATIONS 21 

legal entities are involved in proceedings under the Bankruptcy Act, 

Federal or state receiverships or other insolvencies (including insolvent banks), assignments for the benefit of creditors, or corporate 

dissolutions, or in the administration of estates of decedents, special 

procedures have been devised in order to protect Federal tax interests 

and claims. These cases for the most peat involve court proceedings. 

In such cases the Office of the Chief Counsel bears the responsibility 

in the Bureau for initiating and perfecting all legal actions which may 

be necessary to protect the interests and claims of the United States. 

During the fiscal year 1952 there were 9,790 such cases disposed of in 

which the Federal taxes claimed amounted to $52,327,030, and the 

amount collected was $17,725,302. Tables dealing with the handling 

of these cases appear in the "Appellate Work and Civil Litigation" 

section of the Appendix to this report. 

Where suits are instituted to foreclose mortgages or other liens on 

property to which Federal tax liens have attached, the Office of the 

Chief Counsel also assumes prime responsibility in the Bureau for 

initiating and perfecting all legal actions which may be necessary to 

protect the interests of the United States. Furthermore, where 

applications are filed for the administrative discharge of property 

from the effect of Federal tax liens, the Office of the Chief Counsel 

exercises original jurisdiction in connection with a number of such 

noncourt lien cases. During the fiscal year 1952, a total of 966 lien 

cases in court were disposed of, in which the amount collected was 

$186,070 and 466 noncourt lien cases were disposed of in which the 

amount collected was $1,847,192. Tables dealing with the handling' 

of these cases appear in the "Appellate Work and Civil Litigation" 

section of the Appendix to this report. 

APPELLATE WORK AND CIVIL LITIGATION 

General.-A taxpayer who does not agree with an examiner's 

findings with reference to the tax due the Government, may request 

a conference in the revenue agent's office in an attempt to reach 

agreement; may ask for a hearing before the Appellate Staff, the 

appeal agency of the Bureau; and may petition The Tax Court of 

the United States for a redetermination of the tax, if a deficiency is 

involved. An alternative to these avenues of appeal is to pay the 

tax and sue for its refund in a United States District Court or the 

United States Court of Claims. 

Where a conference is held in the revenue agent's office and no 

agreement is reached, the taxpayer may ask for a hearing before the 

Appellate Staff. If the taxpayer is not satisfied with decision reached 

by the Appellate Staff conferees, he may still petition the Tax Court 

for a redetermination. Instead of filing a petition with the Tax 

Court, the taxpayer may pay the tax, file a claim for refund, and start 

suit for refund in the United States District Court or the Court of 

Claims. Such a suit may be settled, after recommendation of the 

Chief Counsel, by the Department of Justice, or it may go to trial. 

A taxpayer who has petitioned the Tax Court, may request a conference for the purpose of arriving at a settlement without a trial. 

Such conferences will involve Appellate Staff conferees. If such a 

settlement is reached, the court will enter a decision in accordance 

with the stipulation between the parties, and a hearing will be unnec- 
Fiscal year 

1951 

48, 028 35, 684 

34,460 26,644 

4, 415 4, 355 

10, 641 13 701 

49,516 39,700 

Protests received 

Protests disposed of: 

Closed by agreement or payment 

Unagreed, statutory notices issued 

Unagreed, referred to Appellate Staff 

Total disposals 

Number of returns involving tax adjustments 

Item 

Fiscal year 

1952 

22 REPORT OF COMMISSIONER. OF INTERNAL REVENUE 

essary. In cases where no conference agreement is reached or no 

conference is requested, a hearing is conducted before the Tax Court. 

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

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

recomputation of tax in accordance with its findings and opinion. 

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

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

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

and may file a petition with a United States Court of Appeals for 

review of the decision. 

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

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

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

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

review is granted only for special and important reasons. 

Adjustments protested by taxpayers.—During the fiscal year 1952 

taxpayers filed protests with respect to adjustments proposed by 

examiners in 35,684 income, profits, estate and gift tax returns. 

Conferences arranged in revenue agents' offices in response to such 

protests were held before personnel entirely different from those who 

made the original recommendations. Decisions were reached after a 

study of the examiners' reports, the evidence presented by the taxpayers in their protests, and any additional facts brought out in the 

course of the hearings. 

The number of adjustments protested and the nature of their 

disposal are shown in the following table for the fiscal years 1951 and 

1952: 

Progress in disposition of protested cases by revenue agents' offices 

[Income, profits, estate, and gift taxes] 

Appellate Staff consideration of cases not before the Tax Court—Where 

a taxpayer is not satisfied with the decision reached after a conference 

in a revenue agent's office, he may request a hearing before conferees 

of the Appellate Staff. The Appellate Staff acts on behalf of the 

Commissioner to review protested determinations of tax liability in 

Federal income, profits, estate and gift taxes prior to the filing of a 

petition to The Tax Court of the United States. Late in the fiscal 

year 1952 the jurisdiction was extended to include Federal excise taxes 

(other than alcohol, tobacco, narcotics, and firearms) and employment 

taxes. 

Any settlement effected by the Appellate Staff is final and will not 

be reopened unless it is shown that the disposition involved fraud, 

REPORT ON OPERATIONS 23 

malfeasance, concealment, or misrepresentation of material fact or 

an important mistake in mathematical calculations. 

An exception to the Appellate Staff's jurisdiction is in issues arising 

under section 722 of the Internal Revenue Code. In such cases the 

Staff is subject to the authority of the Excess Profits Tax Council.' 

Similarly, the Appellate Staff may not eliminate the ad valorem fraud 

or negligence penalties except with the concurrence of the Chief 

Counsel. 

The progress in settlement of cases considered by the Appellate 

Staff prior to the filing of a petition with the Tax Court is shown 

below for the fiscal years 1951 and 1952. 

Appellate Staff progress in the settlement of cases not before the Tax Court 

[Income, profits, estate, and gift taxes] 

Status 

Number of cases I 

Fiscal 1951 Fiscal 1952 

Opening inventory 10, 340 10, 207 Received 7, 236 7, 642 

Dispositions, total 7, 369 7, 772 Settled by agreement 4, 374 4, 634 Defaulted after statutory notice 776 802 Petitions filed after statutory notice 1, 568 1,570 Unagreed overassessment and claims rejections 429 522 Returned to revenue agent without action 168 173 Transferred to other Bureau agencies 54 71 

Closing inventory 10, 207 10, 077 

A case may Include several tax years of one taxpayer. 

Nom—Since appellate jurisdiction with respect to excise and employment taxes was assigned to the 

Appellate Staff late in the fiscal year, no cases of either claw are included in this report. 

During fiscal year 1952, in addition to the above dispositions, 815 

subsidiary cases were closed in accordance with action taken in the 

respective principal case, as compared to 436 such cases closed in 1951. 

There were 10,077 cases on hand June 30, 1952, of which 8,867 cases, 

involving $348,765,459 additional taxes and penalties and $62,195,528 

proposed overassessments, were awaiting action by the Appellate 

Staff, and 1,210 cases involving $49,852,959 additional taxes and 

penalties and $4,802,650 proposed overassessments were awaiting 

taxpayers' action on statutory notice. 

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

to a deficiency determined by the Bureau and desires a judicial opinion 

of his case may file a petition asking a redetermination of the tax by 

The Tax Court of the United States, an independent agency having 

no connection with the Bureau of Internal Revenue. 

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

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

stipulation of a case before it goes to trial. However, the Staff may 

not modify any determination of an issue under section 722 except with 

concurrence of the Excess Profits Tax Council, and may not act in 

any case in which criminal prosecution is under consideration. 

1 On April 28,1952, executive direction of the Excess Profits Tax Council was assigned to the Head of the 

Appellate Staff. 
Status Number of 

cases 

Pending, June 30, 1951 

Filed and reopened 

Dispositions, total 

Settlement by stipulation 

Dismissed 

Decision on merit, total 

Favorable to Commissioner 

Favorable to taxpayer 

Modified 

Pending, June 30, 1952 

8, 610 

6, 402 

4, 913 

3,373 

595 

944 

369 

175 

400 

10,095 

24 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

The Chief Counsel's office has exclusive authority to represent the 

Commissioner in the defense of all cases pending before The Tax 

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

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

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

of hearings on recomputations, motions, etc. 

Cases petitioned to the Tax Court which were closed during the 

fiscal year 1952 numbered 4,913. The Appellate Staff, with the concurrence of the Chief Counsel, effected settlement by stipulation in 

3,373 of these cases, while 596 were closed by default of the taxpayer. 

The Tax Court rendered decisions on the merits in 944 cases. 

The table which follows shows the disposition of petitioned cases 

by the Appellate Staff, Office of the Chief Counsel, and the Tax Court 

during the fiscal year 1952: 

Disposition of cases petitioned to The Tax Court of the United States, fiscal year 1952 

[Income, profits, estate, and gift taxes] 

It is the custom to publish in the Internal Revenue Bulletin acquiescences and nonacquiescences of the Commissioner in adverse 

decisions of the Tax Court. These actions are initiated in the Office 

of the Chief Counsel. During the fiscal year ended June 30, 1952, 

acquiescences were published in 204 decisions of the Tax Court, and 

acquiescences in part in 19 decisions. Nonacquiescences were published in 54 decisions and nonacquiescences in part in 11 cases. 

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

civil courts in one of the following ways: (1) through appeal by the 

taxpayer or the Commissioner from a decision of the Tax Court; 

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

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

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

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

insolvency or other debtor proceeding. 

The Chief Counsel's Office exercises general supervision over civil 

tax litigation and advises and participates with the Department of 

Justice in the handling of such litigation. 

The progress of cases in appellate courts on appeals from decisions 

of the Tax Court for the fiscal year ended June 30, 1952, is indicated 

by the following table: 

REPORT ON OPERATIONS 25 

Tax court cases on review in courts of appeal or Supreme Court, fiscal year 1952 

Status 

Number of cases 

In courts of 

appeal 

In Supreme 

Court 

Pending, July 1, 1951 

Appealed 

Closed, total 

Favorable to Commissioner 

Favorable to taxpayers 

Modified 

Pending, June 30, 1952 

351 

334 

3 

4 

207 

270 

126 

18 

2 

2 

414 5 

Excludes cases in which the Supreme Court granted certiorari. 

During the fiscal year 1952 there were 367 cases involving tax 

issues decided by the Federal civil courts (exclusive of bankruptcy, 

receivership, insolvency, compromise, and liquor cases) in addition 

to the appeals from Tax Court decisions noted above. 

The distribution of these cases, by the court involved and according 

to the nature of the decision, is as follows: 

Number of Internal Revenue cases' decided by the Federal civil courts during the 

fiscal year 1952 

Courts 

For the 

Government 

Against 

Government 

Partly for 

and partly 

against 

Government 

Total 

District courts 

Courts of appeal 

Court of Claims 

Supreme Court 

Total 

aw-. 

137 

20 

16 

15 

1 

282 

59 

23 

3 

178 173 le 367 

Excludes bankruptcy, receivership, insolvency, compromise, and liquor eases and cases originating in 

The Tax Court of the United States. 

As of June 30, 1952, there were 2,447 civil cases involving tax 

questions pending in the district courts, 73 pending in courts of appeal, 

324 pending in the Court of Claims, and 2 pending in the Supreme Court. 

CHANGES IN TAX LIABILITY 

ADDITIONAL TAX ASSESSED 

Understatements of tax were found on slightly more than half of 

the 4 million tax returns examined during the year. These understatements of tax were due to errors in reporting income, in claiming 

exemptions or deductions, or in computing the tax. The amount of 

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

The total amount of tax deficiencies, including interest and penalties, assessed against taxpayers during the fiscal year 1952 was 

$1,840,162,452. This amount includes duplicate assessments against 

transferees and jeopardy assessments made to protect the interest of 

the Government, but excludes collections resulting from distraint 

warrants. 
REPORT ON OPERATIONS 

Interest allowed (included inamount refunded) 

on 

9 11 We Is$ 

3,

232, 809 15,51 9, 236 27,261 

59,379 • 

ass dem 'et 

bairr 

WE '31 

2 9 

ETS'gt 999'16I 

131'349'1 236'022 '9L 

1961 

816 '628'02$ 

2, 31 9, 782 17,969,746 1,216 56, 797 

20, 342,541 

ati- S 

274 R 

349'91 

tto '91 

293, 297 

wo 

L 16 '699 '36 

Amount refunded orpaid 

3261 

2295, 41 6, 672 

1, 867, 782, 468 110, 420, 924 189, 997 

1,

875, 043 

989'393'086 '1 

RiEnfl' 

m.o. t tt NI. Cq c15323g6 

186, 362 2, 066 1, 966 10 

529, 951 234, 095 

696 t 890'931 '3 

803'628 '14 

1901 

690690 'L428 

1,644,651, 501 134, 600, 966 16,840 

2, 357, 989 

963'W9 ' 181 

MEM 

"Rgc 

R A - 

SIP '918' T 

'WO620t 

ses '339 

9 

321 

369'809 '8 oeo 'ose 'S Zit'66669 

, 208, 291, 812 

aoquffix 

3961 

/I1'28 

28,403, 138 

1, 002150 

38 10, 616 

'tz 

-rwp 

a m . 

Ige - 

060'9 or! 'ro 

19£'93 

1961 

xor JOsoulD 

Corporation incomeand profitstaxes 

Individual incomeand employment taxes: Excessiveprepayment-income tax Other incometax,and old-age insurance Railroad retirement 

Unemployment insurance 

Total individual incomeand employmenttaxes 

Miscellaneous internal revenue: 

Capital stock tax Estate tax 

Gift tax 

Alcohol taxes r Tobacco taxes 

Manufacturers' and retailers' excises 

Wageringtax Redemptionof stamps: Alcohol 

Wagering Narcotics Silver 

Tobacco 

Other 

Total stampredemptions 

Other 

Total miscellaneous internal revenue 

Total refundsof internal revenue 

ti 

27 

0 

7 

a 

ft 

0 

0 

0 

a 

Se 

a m 

ove, 

=iv 

Ag 

a 

po 

0- 

U8 A B 2 

mme 

26 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

The following table shows a comparison of additional assessments 

for the fiscal years 1951 and 1952, by general classes of tax: 

Additional assessments, fiscal years 1951 and 1952 

General classes of tax 

Fiscal year Increase or 

decrease (-) 

1951 1952 Amount Percent 

Individual income tax 

Corporation income tax 

Excess profits tax 

Total income and profits taxes 

Payroll taxes 

Alcohol and tobacco taxes 

Estate and gift taxes 

Excise taxes 

Grand total 

$797, 595, 666 

496, 281, 244 

280, 934, 526 

$832, 705,181 

500, 740, 752 

201, 972, 933 

$35,109, 515 

4,459, 508 

-78, 960, 593 

4.4 

0.9 

1, 574, 810, 436 1, 535, 418, 866 -39,391, 570 -2. 6 

105, 265, 937 

2, 545,166 

129, 922,349 

44, 059, 482 

133, 075, 385 

3, 551, 251 

121, 420, 925 

46, 696, 025 

27, 809, 448 

1,006, 085 

-8, 501, 474 

2,636, 593 

26.4 

39.5 

-6. 5 

6.0 

1, 856. 603, 370 1,840.162, 452 -16, 440, 918 -0.9 

The above comparison shows that in 1952 additional assessments 

decreased by $16,440,918, or 0.9 percent, from fiscal 1951. 

There were small increases in most of the general classes of tax, but 

in the excess profits tax there was a decrease of $78,960,593. This is 

the excess profits tax under section 710 of the Internal Revenue Code, 

which was repealed for tax years beginning after December 31, 1945. 

The work on returns of this tax is almost completed. The excess 

profits tax provided by the Excess Profits Tax Act of 1950 is included 

with corporation income tax, and only a few returns reporting such 

tax were closed in fiscal year 1952. 

OVER ASSESSMENTS AND OVERPAYMENTS 

The examination of returns and the consideration of taxpayers' 

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

due the Government under the internal revenue laws. The determination of these overassessments often involves the settlement of taxpayers' claims filed under various provisions of the Internal Revenue 

Code, and requires the time and effort of many of the technical personnel of the Bureau. 

An overassessment of tax may be applied as an abatement of unpaid 

tax; as a credit against taxes due; as a refund if all other taxes have 

been satisfied; or a combination of these adjustments, as circumstances 

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

by law. 

During the fiscal year ended June 30, 1952, the amounts of overassessments or overpayments determined were applied as follows: 

Abatements, $1,375,138,836; credits, $490,696,654; and refunds, 

including interest, $2,333,544,315. 

Refunds and repayments.-The refunds and repayments made to 

taxpayers (including draw-backs and stamp redemptions), together 

with interest, totaled $2,333,544,315 for the fiscal year 1952 and were 

made from the appropriation "Refunding internal revenue collections, 

1952 and prior years. " 

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

and amounts of refunds and repayments allowed and the amounts of 

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

the fiscal years 1951 and 1952: 
Refunds Credits 

Taxable year 

Number Principal 

1948 

1949 

1950 

1951 

36, 595, 450 

28,255,094 

29, 835, 574 

29,043, 194 

$2, 131, 276, 668 

1,475, 432, 894 

1, 606, 690, 988 

1, 903, 826, 861 

$1, 464, 013 

721, 951 

1, 752, 834 

3, 622, 692 

1,130, 943 

885, 831 

661, 780 

590, 286 

$302.603,844 

237, 105, 584 

161, 566, 247 

179, 999, 253 

Interest 

28 REPORT OF COMMISSIONER OF INT'E'RNAL REVENUE REPORT ON OPERATIONS 29 

Excessive prepayments of individual income tax.-During the last 

half of the fiscal year 1952 there were 29,831,430 individual income 

tax returns received by field offices of the Bureau showing prepayments of 1951 income tax by the taxpayers in excess of their 1951 

tax liability. By July 31, 1952, the processing of these returns was 

virtually completed, with 29,043,194 overpayments totaling $1,903,-

826,861 scheduled for refund to the taxpayers and 590,286 amounting 

to $179,999,253 scheduled for credit to taxpayers' accounts. 

This compares to the 30,751,170 overpayment returns filed for 

1950 with a total of $1,606,690,988 scheduled for refund to taxpayers 

and $151,566,247 scheduled for credit to taxpayers' accounts. The 

following table shows for the tax years 1948-1951 the number and 

amount of prepayment refunds and credits. 

Overprepayments of individual income tax scheduled for refund or credit, tax years 

1948-51 

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

Revenue Code provides that a corporation may file an application 

for relief from excess profits tax (Revenue Act of 1940) in any case 

in which the taxpayer establishes that the tax computed using the 

average base period net income would result in an excessive and 

discriminatory tax. In its application the corporation must establish 

what would be a fair and just amount representing normal earnings 

to be used as a constructive base period net income for the purposes 

of computing the excess profits tax. 

Applications filed for relief under section 722 represent only a small 

percentage of the total number of claims filed by taxpayers, but they 

involve many problems of procedure, interpretation, and general 

policy. In respect to these claims, the technical personnel issue 

interpretative rulings, review recommendations of the examining 

officer, hold hearings on unagreed cases, and give technical assistance 

to the legal staff with respect to claims pending before The Tax 

Court of the United States. 

The work of adjusting section 722 claims is nearing completion. 

The following cumulative report shows the number of applications 

for relief under section 722 which have been received and disposed 

of by the Bureau through June 30, 1952: 

Applications for excess profits tax relief (sec. 722, Internal Revenue Code)-Cumulative receipts and disposals, fiscal years 1942-1952 

' Item Number 

Excess profits tax reduction 

Increase in 

income tax 

Claimed 1 Allowed 

Net receipts (excluding transfers and reopened 

cases) 

Disposals: 

Allowed in whole or in part 

Disallowed 

Withdrawn 

Eliminated 3 

Total disposals 

On hand June 30, 1952: 

In agents' offices: 

Awaiting investigation 

Under investigation 

Investigated, awaiting field conferences, 

etc 

In Excess Profits Tax Council: s 

Awaiting decision 

Awaiting review 

Unagreed, statutory notice outstanding or to 

be issued 

Before the Tax Court 

In process of closing 

Total pending 

54, 642 

16,120 

18, 807 

10,826 

3, 535 

$6, 556, 949, 082 

1,109, 081, 749 

1, 455, 986, 851 

891, 354, 074 

22, 142, 302 

$325, 423, 087 $134, 777,661 

49, 288 3.478, 564, 976 325, 423, 087 134, 777, 651 

6 

29 

67 

600 

198 

1, 604 

2, 155 

695 

5, 468, 466 

115,410,868 

91, 858, 542 

773, 246, 713 

254,309, 639 

614, 242, 239 

390. 907, 203 

832,940, 426 

5,354 3,078,384,106 

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

filing of relief applications. 

2 Consists of applications eliminated from further consideration upon agent's finding that no tax liability existed. 

Based on field office reports. Includes cases in transit. 

Tentative adjustments.-Section 3780 of the Internal Revenue Code 

provides that a taxpayer may file an application for a tentative carryback adjustment of the taxes for preceding taxable years affected by 

a net operating loss carry-back or an unused excess profits carry-back 

from any taxable year ending on or after September 30, 1945. 

Since April 1, 1952, these applications for tentative carry-back 

adjustments have been processed in the field offices. The field offices 

act upon the applications and, if found acceptable, allow and schedule 

for refund, credit, or abatement decreases in tax in an amount of 

$10,000 or less resulting from tentative carry-back adjustment. The 

determination involving consolidated returns, decreases in tax in 

excess of $10,000, and certain other special features are subject to 

review and scheduling by the Washington office. 

A comparison of work done on applications for tentative carryback adjustments for fiscal years 1951 and 1952 is shown in the 

following table. 
30 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Summary of applications for tentative adjustments, fiscal years 19.51 and 1952 

[Individual and corporation income and profits taxes] 

Status Number Amount - 

claimed 

Amount 

allowed 

175CAL YEAR 1951 

Pending at beginning 

Applications received 

Applications adjusted, total 

Allowed in whole 

Allowed in part 

Rejected 

pending at end 

meat YEAR 1052 

Pendineat beginning 

Applications received 

Applications adjusted, total 

Allowed in whole 

Allowed in part 

Rejected 

Pending at end 

3, 422 

22, 836 

24, 919 

21,930 

 1,348 

1,641 

$17, 221, 734 

106, 712,651 

94.24& 933 

8, 567,794 

94, 712, 460 

3,897,924 

$101, 548,598 

94, 356, 191 

 7, 192,407 

1,339 5, 221, 643 

1, 339 

23, 608 

20,369 

18, 167 

682 

1, 340 

5, 221, 543 

95,298,830 

85, 634,373 

11, 533, 502 

127, 412, 303 

4, 128 760 

 90,113,377 90,113, 

Si, 737, 421 

4, 376, ISO 

4,678 37,337, 216 

Applications for tentative LIFO adjustments received during the 

fiscal year 1952 numbered four, with net tax reduction sought in the 

amount of $8,510,534. All of these applications were acted upon 

during the year, resulting in allowances totaling $6,382,900. 

r, Other claims.-In addition to the two types of claims described in 

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

tax which were processed by the Bureau in fiscal year 1952, numbered 

508,040. 

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

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

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

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

draw-back of tax on distilled spirits used in nonbeverage products. 

to summary of these claims by class of tax for fiscal year 1952 is 

shown in table which follows: 

Summary of claims, fiscal year 1962 

Class of tax 

Pending 

July 1, 

1951 

Receipts Disposals 

Pending 

June 30, 

1952 

Corporation income and profits 

Individual income 

Income tax withheld and old-age insurance 

Unemployment insurance 

Railroad retirement 

Estate and gift 

Tobacco 

Alcohol 

Miscellaneous 

Total 

54, 540 

208,400 

61, 972 

5, 248 

42 

1, 448 

92 

1,470 

5,261 

31,973 

337, 424 

122, 467 

16,938 

109 

1,017 

2,089 

17, 971 

10, 337 

32, 451 

266,350 

183, 533 

15, 818 

73 

1,049 

1, 742 

16,917 

10,107 

54,062 

279,474 

20, 906 

6,368 

78 

1,416 

439 

2,524 

6,491 

338,473 540,325 508,040 370,758 

REPORT ON OPERATIONS 31 

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

net amount of the tax reduction, whether abatement, credit, or refund, 

exceeds $200,000, the allowance is reviewed by the Chief Counsel's 

office. These cases include overassessments of income, excess profits, 

estate, gift, and miscellaneous taxes proposed for allowance; allowances already made of tentative amortization and carry-back adjustments of income and excess profits taxes; and interim refunds allowed 

to taxpayers entitled to the benefits of section 22 (d) (6) of the Internal 

Revenue Code. Any deficiencies coupled with such tax reductions 

under review are likewise subject to review. 

A report is prepared for the Joint Committee on Internal Revenue 

Taxation as required by section 3777 of the Internal Revenue Code 

where the net overpayments of income, excess profits, estate, or gift 

taxes exceed $200,000. During fiscal year 1952, there were reported 

to the Joint Committee of Internal Revenue Taxation, 213 cases 

involving total overassessments in the amount of $353,828,370. 

OFFERS IN COMPROMISE 

Under section 3761 of the Internal Revenue Code, the Commissioner, with the approval of the Secretary or Under Secretary of the 

Treasury, or of an Assistant Secretary of the Treasury, may compromise for a lesser amount liabilities in any civil or criminal case arising 

under the internal revenue laws before it is referred to the Department 

of Justice for prosecution or defense. Mutual concessions are essential to a valid compromise agreement. Where liability is undisputed, or has been established by a valid judgment and there is no 

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

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

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

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

and/or penalty, there is room for mutual concession. The adequacy 

of the concession or consideration sufficient to justify the acceptance 

of an offer in compromise is determined by the exercise of sound 

discretion following an exhaustive analysis and evaluation of all 

facts and circumstances applicable to each case. 

When a violation of the internal revenue laws is deliberate and 

with intent to defraud, criminal liabilities will in no case be compromised by the Treasury Department. 

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

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

liability. 

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

of assessed liabilities are demanded, ad valorem penalties for delinquency in filing returns are asserted, or specific civil or criminal 

penalties are incurred by taxpayers upon the doing of certain acts 

specifically prohibited by, or failure to perform certain acts specifically 

required by internal revenue laws and related statutes. In most 

instances the offers are tendered to internal revenue officers as they 

conduct their collection operations or as they perform their functions 

relating to the enforcement of regulatory provisions. However, in 

case of ad valorem penalties asserted for delinquency in filing returns, 

34 RETORT OF COMMISSIONER OF INTERNAL REVENUE 

may be involved and a report is prepared for the signature of the 

Secretary discussing such problems and stating whether the Department favors or opposes the enactment. Over 100 such reports were 

prepared during this fiscal year. Similarly, after a bill has passed 

both Houses of Congress and is forwarded for the signature of the 

President, a report is prepared, also for the signature of the Secretary, 

recommending approval or disapproval of the proposed legislation. 

After the enactment of an internal revenue law, the Bureau interprets its provisions. This interpretation consists primarily of the 

preparation of regulations and the issuance of rulings based unnn 

specific fact situations. 

The regulations prepared are submitted for approval and for publication in tentative form in accordance with the Administrative 

Procedure Act (Public Law 404, 79th Cong. (1946), approved June 11, 

1946). All data, views, and arguments presented within 30 days following publication in tentative form by interested persons with respect 

to the proposed regulations are carefully considered prior to the 

preparation of such regulations in final form. 

As a result of four major revisions of the Internal Revenue Code 

during the past 2 years (Revenue Act of 1950, Social Security Act 

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

Act of 1951), the Bureau has prepared an unusually large volume of 

regulations during the fiscal year 1952. The social security tax regulations under the Federal Insurance Contributions Act were rewritten 

(Regulations 128); regulations under the wagering tax provisions were 

promulgated (Regulations 132); and seventy-one Treasury Decisions 

amending existing regulations were issued. 

After the regulations are prepared, adopted, and promulgated in 

final form, the Bureau continues its interpretative function by issuing, 

upon request, rulings under the law and regulations as applied to 

specified fact situations. In administering the law and the regulations, 

a considerable volume of such rulings normally result. 

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

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

Internal Revenue Service. Some idea of their volume, however, can 

be given. During the fiscal year 1952, for example, in the field of 

income, estate, and gift taxes alone there were 40,400 interpretative 

rulings issued to taxpayers and field offices of the Bureau, exclusive 

of opinions (numbering about 2,500) issued by the Chief Counsel for 

the Bureau. In addition, the Bureau issued over 14,700 rulings pertaining to the various excise taxes; over 7,200 rulings in employment 

tax cases; over 4,050 rulings relative to alcohol tax; and nearly 800 

rulings on wagering taxes. The number of rulings referred to above 

represent generally the more complex rulings. In many cases, additional correspondence is necessary to develop the factual situations 

involved, to clarify doubtful issues, and to resolve differences of 

opinion and interpretation. In many cases, too, for these same purposes, conferences are held with taxpayers or their counsel prior to 

issuance of the ruling. The stated figures do not include rulings of 

a routine nature issued by the Bureau in an even greater number. 

REPORT ON OPERATIONS 35 

The great number of rulings is indicative both of the infinite variety 

of the circumstances which give rise to requests for rulings, and of 

the nonstatic nature of the tax law. Thus, the recent enactment of 

many new statutory provisions resulted in a substantial increase in 

the number of rulings of the Bureau. 

The interpretative function also includes the preparation and publication of the Internal Revenue Bulletin in which is included, among 

other things, Treasury Decisions and the more important precedent 

rulings of the Bureau. During the fiscal year 79 rulings were 

published. 

INSPECTION SERVICE ACTIVITIES 

To insure maintenance of high standards of conduct by all Bureau 

personnel and to insure strict and scrupulous compliance with all 

applicable laws, policies, regulations, practices, and procedures prescribed by appropriate authority, a uniform and thorough inspection 

system has been provided throughout the headquarters and field 

offices of the Internal Revenue Service. During the fiscal year 1952 

the inspection system was materially strengthened and consolidated 

by the establishment of the Internal Revenue Inspection Service (see "Improvements," page 42). 

The Service is charged with the investigation of applicants for positions in the Internal Revenue Service, investigations of misconduct 

and irregularities on the part of the employees and officials of the 

Bureau, and conducting frequent and thoroughgoing inspections of 

the administrative management, operating, and employee-conduct 

aspects of all departmental and field offices. 

Investigations of alleged misconduct and irregularities on the part of 

employees and officials.—When reports of alleged misconduct or irregularities on the part of an internal revenue employee are received, a 

thorough and impartial investigation of the charges is made and a 

report submitted either clearing the employee of the charges or recommending that some disciplinary action be taken. The charges 

against employees may involve not only improper relations with taxpayers or embezzlement, but also matters of personal conduct not 

involving tax matters or dishonesty. 

During the fiscal year 1952 there were 629 charges of misconduct 

or irregularities disposed of after investigation. In 345 of these cases 

the employees involved were cleared of the charges, and in the remaining 284 cases some disciplinary action was recommended. In these 

284 cases, separation from the Service was recommended for 174 

employees. A more detailed summary of disciplinary actions taken 

against employees is to be found in the "Personnel summary" section 

of this report, page 37. 

Field office inspection.—To appraise management, operations, and 

efficiency, frequent and systematic examinations of all Bureau offices 

are made by the thirteen field offices of the Inspection Service. These 

inspections are for the purpose of ascertaining and evaluating the 

effectiveness of the organizational structure of the offices; the status 

of all phases of the work and the quality of its performance; the 

229047-53---4 
1951 1952 

Average number on roll, 

fiscal year Increase or 

decrease (—) 

Type of personnel 

Departmental 

Field enforcement: 

Field deputy collectors 

Collectors' office auditors 

Returns examiners 

Returns coordinators 

Internal revenue agents 

Special agents (tax fraud ) 

Alcohol tax Inspectors 

Alcohol tax investigators 

Storekeeper-gaugers 

Supervisory 

Total enforcement 

Other field: 

Legal 

Other technical 

Stenographers and typists 

Clerical (excluding temporary) 

Messengers and laborers 

Temporary employees 

Total other field 

Total field 

Grand total 

4,208 3.953 -255 

10,176 1 10,485 

3, 258 1 3,303 

912 1873 

56 ss 

7,806 7,973 

1.236 1,206 

601 542 

872 853 

1,464 1,495 

332 340 

26,713 27,128 415 

210 220 

2,086 Z 268 

6,670 6, 732 

14, 927 14,988 

182 180 

809 840 

10 

182 

62 

61 

—2 

31 

24, 884 25, 228 344 

51, 597 52,356 

55,805 56,309 

759 

504 

309 

45 

—39 

2 

167 -30 

-so 

—19 

31 

8 

36 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

efficiency of its procedures, methods, and systems; the conduct of 

personnel administration, such as staffing, training, and utilization 

of employees; the conduct of all fiscal and tax accounting aspects of 

the office with particular reference to the examination of all tax revenue 

accounts maintained; the adequacy of supervision and control over 

work-measurement standards and review procedure; the utilization 

of space, furniture, and equipment; the maintenance and disposal of 

records; and the conduct of all other matters concerned with the 

administrative and operational management of the office. Cost and 

productivity reports, operational statistics, etc., are also reviewed 

and analyzed to detect current and potential problems in administration and operation of the offices. 

During the fiscal year reports were submitted by inspection officials 

covering examinations of 86 field offices. 

Employees' financial statements, Form 1361.—In an effort to isolate 

the relatively few employees who might have realized financial gains 

in an unauthorized manner by reason of their official positions, financial statements and related instructions were drafted and distributed 

to about 32,000 employees. As of June 30, 1952, approximately 

31,500 of these statements had been analyzed and closed. One 

resignation and one removal from the Service have resulted from 

unwillingness to execute such statements. Difficulties were met in 

a few cases, but the vast majority of the employees who received them 

fully completed the statements. It is intended that the periodic 

filing of financial statements be required. 

Audit of employees' tax returns.—It has always been the policy of 

the Bureau to select for examination the individual tax returns of 

officials and employees of the Internal Revenue Service on the same 

basis as those of other taxpayers. During the year this policy was 

amended to require the examination of the income tax returns filed 

by all top officials, front-line enforcement employees, and certain 

other employees. As a starting point, 91,075 returns filed by employees for the years 1948, 1949, and 1950 were selected for audit. 

There were 90,258 of these returns examined, of which 83,323 were 

found to be correct as filed. On 6,059 returns deficiencies totaling 

$369,105 were determined, while on 876 returns the tax was found to 

be overstated by a total of $50,922. 

PERSONNEL SUMMARY 

During the fiscal year ended June 30, 1952, the number of employees on the rolls of the Internal Revenue Service averaged 56,310. 

Appointments to the Service numbered 6,888, while separations 

totaled 9,312. Included in the separations are 128 military furloughs, 

669 retirements, of which 134 were due to disability, and 174 separations for disciplinary reasons. The average number of employees 

in the field and departmental service of the Bureau during the fiscal 

years 1951 and 1952 are compared in the following table, by type of 

personnel: 

REPORT ON OPERATIONS 37 

Average number of employees on rolls, fiscal years 1951 and 1952 

2 Includes personnel of this type in the former collection d shirts at Chicago and Springfield, Illinois who were transferred to the offices of Director of Internal Revenue at Chicago and Springfield. 

Disciplinary actions against employees.—In the cases of the 284 

employees for whom some disciplinary action was recommended after 

investigation of alleged misconduct or irregularity, there were 174 

separated from the Service, 25 suspended from pay status for varying 

periods, 4 demoted, 8 reassigned to different duties or areas, and 73 

officially reprimanded. 

Separations during each of the fiscal years 1950-1952 resulting from 

investigations are shown in the following table by reason for action 

and by class of employee: 

Separations for cause during the fiscal years 1950-1952 

(a) BY REASON FOR ACTION 

Fiscal year 

1952 

Acceptance of gratuities, bribes, etc 

Embezzlement involving United States Government funds or property ..... 

Failure of employee to pay proper tax 

Falsification or distortion of Government reports, records, etc Unauthorized outside activity 

Failure to properly discharge duties 

Personal misconduct unrelated to tax cases 

Refusal to cooperate in an official Investigation 

Divulgence of confidential information 

Failure to ale financial statements 

Total number 

Reason 

1950 1951 

3 

2 

7 

1 

21 

5 

19 

10 

4 

1 

1 

23 

53 

24 

21 

5 

15 

7 

45 

2 

2 

39 62 174 
1950 1951 1952 

Fiscal year 

Class 

Collectors 

Assistant collector s 

Internal revenue agents 

Deputy collectors 

Administrative officers 

Administrative assistants 

Special Agents 

Investigators 

Criminal investigators 

Technical clerks 

Alcohol and tobacco tax inspectors 

Miscellaneous tax investigators 

Accountant-auditors 

storekeeper-gaugers 

Position classiters 

Auditors 

Tax accounting clerks 

Claims examiners 

Clerks 

Clerkstenographer s 

Clerk-typists 

Bookeeping machine operators 

Bindery workers 

Messengers 

Laborers 

Total number 

7 

3 

5 

19 

3 

10 

28 

3 

30 

79 

12 

5 

4 

2 

2 

2 

2 

1 

1 3 

3 

6 1 2 

4 7 

102 

2 

3 

39 62 174 

38 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Separations for cause during the fiscal years 1950-1952--Continued 

(b) BY CLASS OF EMPLOYEE 

Rules of conduct revised.—The booklet entitled "Rules for Conduct 

and Other Instructions for Employees of the Internal Revenue 

Service" was revised during the year. A copy of the revised booklet 

was sent to each employee with instructions that it be studied carefully and that there be compliance with the spirit as well as the letter 

of the rules. 

Among the revisions in this booklet were the rules relating to outside 

employment or business activities. Procedure was revised to require 

that permission to engage in outside employment or business be 

requested in writing. Permission will not be granted where the 

personal interest of the employee may conflict with his official responsibilities or infringe upon his official time or duties. Neither 

will permission be granted where the activity might tend to bring 

discredit on the Service or be inimical to its best interests. 

COST OF ADMINISTRATION 

The amount appropriated for administrative expenses of the Bureau 

for the fiscal year 1952 was $273,000,000, of which $271,872,192 was 

expended, leaving an unexpended balance of $1,127,808. Expenditures for the year exceeded 1951 expenditures by approximately 

$26,000,000. This increase was due primarily to additional salary 

obligations arising from the general pay increases provided for by 

Public Law 201, Eighty-second Congress. Notwithstanding the 

increased outlay, the cost of collecting $65,009,585,560 during the 

year was approximately $0.42 per $100 compared with $0.49 per 

$100 in 1951. 

Data on the annual cost of administration, although of interest 

and value for certain purposes, cannot be relied upon either as a 

REPORT ON OPERATIONS 39 

guide to the proper scale of administrative activity or as a measure of 

relative efficiency of operation from year to year. An annual ratio 

of cost to collections is determined by many factors, most of which 

have no relationship to these objectives. To illustrate, the higher 

the level of tax rates and the more numerous the levies that are 

inherently economical to collect, the lower will be the average cost 

ratio. The prevailing level of salaries paid to Bureau personnel 

and the volume of essential services performed for taxpayers are 

other examples of these determinative factors. 

Rewards to informers.—Under section 3463 of the Revised Statutes 

and section 3792 of the Internal Revenue Code, persons supplying 

information to the Bureau relative to violations of the internal revenue laws may submit claims for rewards. During the fiscal year 

1952 there were received 1,849 of these informers' claims. A table 

showing the receipt and disposition of claims for informers' rewards 

during the fiscal years 1951 and 1952 follows: 

Disposition of claims for informers' rewards, fiscal years 1951 and 1952 

Status Fiscal year 

1951 

Fiscal year 

1952 

Pending, beginning of period 4, 199 5, 388 Received 1, 461 1, 849 

Dispositions, total 272 1, 262 Rejected 151 1,043 

Allowed: 

Number 121 219 Amount' $499,997 $499,995 

Pending, end of period 5,388 5,975 

Amount available for payment of rewards limited to $500.000 

IMPROVEMENTS 

Reorganization Plan No. 1 of 1952, was the high point of management interest during the past fiscal year. However, the steady 

progress which has characterized the Bureau's improvement program 

since its inception in 1946, continued throughout the year with 

outstanding results in the institution of procedural advancements 

and in the elimination of unnecessary work. 

Tax forms revision.—With a view to eliminating a major source 

of taxpayer error and the consequent need for investigation, individual income tax returns, Forms 1040 and 1040A, were revised to 

include a uniform exemption schedule designed to focus attention on 

dependency tests and requiring supplementary information with 

respect to claimed dependents outside of the immediate family of the 

taxpayer. Other changes in these forms included: the simplification 

of tax computation for individuals and married couples with surtax 

net income under $2,000; revision of instructions to incorporate the 

provisions of the Social Security Act Amendments of 1950 to permit 

credit against income tax of certain FICA taxes overwithheld, thus 

eliminating certain assessment and refunding operations; and provisions for the reporting of self-employment tax on Form 1040. 

Revisions were made in the typography and design of these forms to 

facilitate their preparation and processing. A Spanish language 
40 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

Form 1040-PR was designed for use of taxpayers in Puerto Rico and 

Form 1040-VI was designed for use of taxpayers in the Virgin Islands. 

Other forms were improved as follows: the Withholding Statement, 

Form W-2, was revised to decrease the number of entries and reduced 

in size to facilitate preparation and handling; Form W-3, Reconciliation of Income Tax Withheld from Wages, was revised to permit the 

use of the same form from year to year; the Employer's Tax Return 

Under Railroad Retirement Tax Act, Form CT-1, was simplified 

and a schedule for listing of depositary receipt payments added; 

Social Security Tax Form SS-8 was revised to provide more adequate 

information for determining the employer-employee relationship, 

and Form SS-14 was improved in typography; Tax Transfer Voucher, 

Form 514, was revised, bringing all pertinent information to the 

front of the voucher and eliminating entries on the back; and Form 

940, annual unemployment tax return of employers of eight or more 

individuals, was redesigned with a detachable schedule to facilitate 

certification of credits by State officials. 

New tax form mailing assembly.—A "package" mailing unit for 

distribution of the individual income tax return, Form 1040, was 

tested during the 1952 filing period, resulting in its approval for 

Nation-wide use in the 1953 filing period. The plan involves the 

assembling of instruction material and the tax returns in book form, 

and the mailing of the entire assembly in a flat package without 

envelope. Not only is the printing cost lower, but the mechanization 

of the mailing operation possible with the "package" provides a sharp 

contrast to the usual assembling and folding of instruction booklets 

and forms and stuffing them in envelopes. The funds saved on 

envelopes alone were sufficient to purchase and install the 52 labeling 

machines required for Nation-wide use. The test also showed favorable acceptance of the "package" form by a majority of taxpayers 

and indicated possible improvement in the quality of reporting, 

because of the availability and better presentation of the instructions. 

The absence of the "fold" in the return is also a distinct improvement 

which should produce further savings 

Changes in organization and procedure.—A number of actions were 

taken during the year to streamline and reorganize the work of the 

Bureau along more efficient lines. These included: (1) the reorganization of the Income Tax Unit, resulting chiefly in the reduction 

of its 13 primary organizational units to 5 branches and the elimination 

of 113 positions, and the establishment of an Analysis and Planning 

Staff, an office of Executive Management Officer, and a Field Supervisory Service; (2) the transfer of excise tax investigative personnel 

to the Income Tax Division and their integration into the offices of 

internal revenue agents in charge; (3) the extension to excise tax 

cases of appellate procedure through the medium of the Appellate 

Staff,• (4) the transfer of audit of unemployment tax returns, from the 

Employment Tax Division to collectors' offices; (5) the merger of the 

processing and audit work of the Employment Tax Division and the 

resulting elimination of the Control Branch of that Division; (6) the 

integration of tobacco and alcohol tax work and the transfer of tobacco 

tax field work to district supervisors; (7) simplification of the post 

audit procedure for reporting errors of taxpayment on distilled spirits, 

as well as the procedure to be followed upon discovery of underpayREPORT ON OPERATIONS 41 

ment or overpayment of tax on fermented malt liquor where there is 

no evidence of intent to defraud; (8) the certification of mutilated, 

unused strip tax stamps by storekeeper-gaugers, thus facilitating the 

processing of claims for the redemption of such stamps. 

As a step toward its planned and orderly liquidation, as its workload decreases, the Excess Profits Tax Council was placed under the 

executive direction of the Head of the Appellate Staff. The offices 

of chairman, vice chairman, and the executive committee were 

abolished. Members of the executive coramitteee were restored to 

full-time duty as council members. 

The mail opening operation in collectors' offices was improved 

and standardized, resulting in a more rapid and efficient handling 

of mail and remittances with a marked saving in labor. The standardized operation includes improved mail room layout, use of specially-designed equipment, a minimum production standard, general 

organization of work, and improved management of personnel. 

Changes in fraud procedure.--Strengthened and improved fraud 

procedures installed during the year have proved to be of considerable value in expediting the processing of criminal tax fraud cases. 

The former policy under which criminal prosecution was not recommended in cases where taxpayers made voluntary disclosures of intentional violation of internal revenue laws prior to investigation was 

abandoned. Also eliminated as a consideration in determining 

whether to recommend prosecution was the health of the taxpayer 

involved. Such determination was held not to be a proper function 

of the Bureau, but rather one to be taken into account within the 

judicial process. A revised procedure for handling criminal prosecution cases prescribes direct referral of such cases by the district penal 

counsel of the Chief Counsel's office to the Department of Justice 

in Washington, D. C., thus eliminating case review by the Regional 

Counsel and Was hington headquarters offices. 

Operating manuals.—Considerable progress was made in the 

formulation of new instruction manuals and the revision of existing 

manuals to cover enactment of new legislation, consolidation of 

functions, and simplification of procedures. The Collectors' Manual 

was revised to include some 200 pages of new or revised text, and a 

new volume on field procedure was issued; the Raw Materials Manual 

and parts of the Office Procedural Manual relating to alcohol and 

tobacco tax were revised, while work on the Seized Property Manual 

and Manual of Instructions for Investigators was substantially completed; The Special Agents' Manual, in the process of revision, 

neared completion; the Appellate Staff Manual was issued during the 

year, and manuals pertaining to excise tax and employment tax 

activities of the Appellate Staff were started. Procedural manuals 

for the Inspection Service were issued. A fully integrated ninevolume loose-leaf manual system covering all permanent operating 

instructions, will be provided under the Reorganization Plan. 

Regional finance offices.—As part of a continuing program to 

obtain more effective accounting controls for operating and budget 

purposes, eight additional regional finance offices were established 

during the year, bringing the total number of such offices to 11. 

Other regional offices will be established coincident with the installation of district commissioners' offices. A study of the Bureau's 
42 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

accounting systems was begun in April 1952, in conjunction with the 

reorganization and also as a part of the Government-wide survey 

provided for in the Budget and Accounting Procedures Act of 1950. 

New equipment. —Continued progress was made in the use of timesaving operating equipment. The use of electronic accounting and 

calculating machinery was extended to include the maintenance and 

billing of revenue accounts, the addressing of wage and excise tax 

returns, and the checking of records to indicate delinquent taxpayers 

for enforcement purposes. A punched control card accompanied 

approximately 39 percent of the blank individual income tax returns 

mailed to taxpayers, and its use eliminated from some collectors' 

offices the yearly repetitive "listing" operation. 

Further mechanization of work during the year was accomplished 

by the installation of electric typewriters and automatic posting 

machines in 12 additional collectors' offices, making a total of 18 now 

having such equipment. Three other districts were supplied with 

electric typewriters having dual feed platens. The Intelligence 

Division installed electric typewriters in a number of offices to resolve 

their particular multiple copy problems. The Appellate Staff found 

use of mechanical dictating and transcribing equipment, as well as 

electric typewriters, of material aid in expediting work. Specially 

developed window-teller machines were ordered for 10 collection 

districts on a pilot installation basis. 

Inspection Service.—The Inspection Service, which was activated on 

October 1, 1951, to provide a continuing check on efficiency of operations and integrity of employees, has had a steady record of development and accomplishment. Originally established to intensify and 

coordinate the activities of existing staffs of each operating division 

and to appraise management improvements and techniques, the 

Inspection Service was strengthened on March 15, 1952, by the 

consolidation of these staffs into the Inspection Service proper. 

Full authority to exercise general superintendence over all inspection 

activities was delegated to the Director of the Inspection Service. 

The field organization is coprised of 13 offices of Chief Inspector 

responsible to the Director

m 

 who in turn reports directly to the 

Commissioner. 

The Inspection Service is charged with the review of administrative management and operating procedures of all departmental and 

field offices and with the investigation of employee conduct, including 

the thorough and impartial investigation of character and ability of 

applicants for employment. 

The Inspection Service ascertains and reports on the manner in 

which Bureau affairs are conducted; whether there is strict compliance 

with all applicable laws, policies, regulations, practices, and procedures; and on the conduct and integrity of employees. 

During the fiscal year the Inspection Service (1) installed a system 

for control and follow-up on all complaints of whatever nature 

received; (2) required more frequent and intensive inspection of field 

offices; (3) inaugurated a systematic program for the audit of employees' income tax returns; (4) (a) effected a plan requiring rotation 

of field inspection personnel to 60-day assignments in Washington 

REPORT ON OPERATIONS .43 

headquarters to facilitate interchange of experience and ideas between 

forces, (b) projected plans for interchanging field supervisory forces 

between districts so that offices will be examined by different staffs, 

(c) initiated a policy of interchanging personnel between inspection 

forces to facilitate a "new look" from men in different although related activities; (5) completed plans for a training school for inspection 

personnel; and (6) took many other steps to strengthen and improve 

the Internal Revenue Service. 

Other actions.—The utilization of Federal records centers, established by General Services Administration during the latter part of 

the fiscal year, is expected to be of material aid to departmental and 

field offices in the storage of record material. Space currently 

required for the storage of inactive records not eligible for disposal 

may thus be released for other requirements. The use of these 

centers also should prove of assistance in the transfer of certain files 

incident to the reorganization of field offices. 

Depositary receipt procedures were improved by revision of Forms 

450 and 479 to expedite processing and to alleviate problems of getting 

employers to forward validated receipts with their returns. Form 

450 is now mailed to all employers whose returns show a tax liability 

of $300 or over, in an effort to improve compliance with the depositary 

receipt procedures by these employers. 

The program for exchanging abstracts of income tax audit reports 

with State Governments, which was inaugurated in 1950 with the 

States of North Carolina and Wisconsin, was extended to include 

Colorado, Montana, and Kentucky. 

In an effort to locate payees of tax refund checks which had been 

returned as undelivered by post offices, collectors' offices cooperated 

with the press by making available for publication the names and 

last known addresses of such payees. From January 1 to April 30, 

1952, a total of 210,098 of these checks were delivered. 

Executive management and other officials were relieved of considerable paper work by use of powers of delegation under Reorganization Plan No. 26 of 1950. 

Operating procedures and delegations of authority on actions 

affecting the departmental and field personnel programs were drafted 

during the last half of the fiscal year. One significant effect of these 

procedures will be the achievement of considerable economy in the 

processiiT of personnel actions and the maintenance of personnel 

records, including, for example, the decentralization to the field 

service of more than 50,000 official personnel folders for field employees. 

Minimum qualification standards were raised for the positions of 

deputy collector, internal revenue agent, and special agent (tax fraud). 

In addition to establishing higher educational and experience requirements for these positions, oral interviews to determine personal 

qualifications were made an integral part of the examination for the 

position of deputy collector. The entrance grade for deputy collectors 

was raised from GS-5 to GS-7, and appointments from registers for 

this position will be probational rather than indefinite, with permanent 

status resulting after satisfactory completion of a 1-year probationary 

period. 
44 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

LEGAL FUNCTIONS 

The legal work of the Bureau of Internal Revenue is performed 

by the Assistant General Counsel whose office is established by section 

2(b) of Reorganization Plan No. 1 of 1952 and who is appointed by 

the Secretary of the Treasury under the classified civil service as 

provided by section 3 of that Plan. This was the first to be filled of 

the offices created by the Plan. This Assistant General Counsel uses 

the operating title of Chief Counsel, Bureau of Internal Revenue. 

The authority, duties, and functions of the Chief Counsel are 

vested in him by delegation from the General Counsel for the Department of the Treasury, who is the chief law officer of the Department. 

The Office of the Chief Counsel is, however, an integral part of the 

Internal Revenue Service. The functions of the Chief Counsel include the following: Rendering of legal opinions, written or oral, for the guidance of officers and 

employees of the Bureau; preparation or review of regulations, Treasury Decisions, and certain other materials for publication; review of 

certain rulings, closing agreements, and compromises (including performance of the functions prescribed for the General Counsel by 

section 3761(b) of the Internal Revenue Code); preparation or review 

of recommendations to the General Counsel for changes in internal 

revenue laws and, when requested, the furnishing of technical assistance in the development and drafting of legislation; supervision and 

control of defense of petitions to The Tax Court of the United States 

and determination of whether to acquiesce or nonacquiesce in adverse 

decisions of the Tax Court; recommendation to the Department of 

Justice of what civil suits should be brought in the courts under the 

internal revenue laws (including claims for taxes in bankruptcy and 

receivership cases), what criminal cases involving violations of such 

laws should be prosecuted, what defense should be made in suits 

brought in the courts against the United States or Government 

officials under such laws, what court decisions under such laws 

(including decisions of the Tax Court) should be appealed, and how 

any such court actions should be handled; and review of proposed 

abatements, refunds or credits of taxes (including interest or penalties) 

of any taxpayer amounting to $200,000 or over and preparation of 

the required reports to the Joint Congressional Committee on Internal 

Revenue Taxation. A partial description of the legal operations for the fiscal year ended 

June 30, 1952, is included under the following headings of this report: 

Alcohol Tax Seizures and Arrests; Legal Work on Criminal Cases; 

Delinquent Returns and Payments; Offers in Compromise; Appellate 

Work and Civil Litigation; Overassessments; Interpretative and Other 

Technical Functions; and Improvements. 

Changes have been developed in the organization of the Office of 

the Chief Counsel with a view to the most efficient rendering of legal 

services to the reorganized Bureau of Internal Revenue. In each of 

the reorganized districts there will be a district counsel. The district 

counsel will be the Chief Counsel's legal representative in the district 

and will serve as principal legal advisor to the district commissioner 

and his staff. The district counsel will be responsible to the Chief 

Counsel for the supervision and performance of all legal duties and 

REPORT ON OPERATIONS 45 

functions by each of the legal units within the district. Under the 

general supervision of the district counsel, the performance of the 

legal work of the district will be directed by the Appellate Counsel 

(in connection with Tax Court litigation and the work of the Appellate 

Division), the Enforcement Counsel (in connection with criminal 

prosecutions for alleged violations of internal revenue laws), the Civil 

Advisory Counsel (primarily in connection with assessment and collection problems), and the Attorney in Charge (Alcohol and Tobacco 

Tax) (in connection with laws pertaining to alcohol, tobacco, and 

firearms matters). The heads of the Washington headquarters divisions concerned with these matters will maintain, through district 

counsel, technical and advisory contact with and coordinate the work 

of the attorneys in the field. 

During the fiscal year there was a material increase in the over-all 

workload of the office. The number of legal cases of all types increased from 32,776 on June 30, 1951 (exclusive of reward claims, 

which cases were transferred out of the Office of the Chief Counsel 

during the year), to 34,811 on June 30, 1952. An extraordinary 

amount of interpretative work has resulted from the major revenue 

acts approved during 1950 and 1951 (the Social Security Act Amendments of 1950, the Revenue Act of 1950, the Excess Profits Tax Act 

of 1950, and the Revenue Act of 1951). Not only have these enactments resulted in an unusual volume of work in preparing regulations, 

but there has been a heavy demand for rulings under these new laws. 

At the same time, there has been an increased volume of petitions to 

the Tax Court and of district court and Court of Claims litigation. 

The criminal cases recommended to the Department of Justice for 

prosecution have also increased, due partly to the special tax fraud 

drive and the enactment of the wagering tax. However, the number 

of attorneys on the rolls was about the same at the close of the fiscal 

year 1952 as at the close of the preceding fiscal year. 

There were a number of management improvements and procedural 

changes introduced during the fiscal year affecting the work of the 

legal office. As mentioned earlier, the function of recommending the 

approval or disapproval of informers' claims for reward for information relating to the detection and punishment of violators of the 

internal revenue laws was transferred from the Office of the Chief 

Counsel to the Income Tax Division on November 7, 1951. The 

Engineers and Auditors Section was transferred from the Office of 

the Chief Counsel to the Income Tax Division on March 11, 1952. 

Three changes relating to the handling of criminal cases—the direct 

referral of such cases to the Department of Justice by the field offices, 

the abandonment of the "voluntary disclosure" policy, and the 

abandonment of the health policy—are discussed in the "Improvements" section of this report. 

Much attention was given during the year by the Office of the Chief 

Counsel to management planning with a view to future procedural 

and organizational improvements. 

During the year, outside counsel conducted a survey of the organization and procedures of the Office of the Chief Counsel and submitted 

a comprehensive report. Some recommendations from the report 

have been adopted; others were under active consideration at the 

close of the fiscal year. 

48 REPORT OF OMMIIISMONER OF INTERNAL REVENUE 

harvesting, and preparing for consumption crops grown in the United 

States. Section 505(b) of such Act, as amended, amends section 

1426(b) (1) of the Internal Revenue Code to exclude from the definition of "employment" services performed by such workers employed 

in accordance with the terms of Public Law 78, so that there will 

be no liability for the tax imposed by the Federal Insurance 

Contributions Act. 

Public Law 82, approved July 23, 1951, amends section 220 of the 

Revenue Act of 1950 to postpone for 1 year the application of the 

income tax to salary paid by the United States to its citizens employed 

in its possessions. 

Public Law 124, approved August 24, 1951, amends section 1700 

(a) (1) of the Internal Revenue Code to provide that no tax shall be 

imposed in the case of admission free of charge of a member of the 

Armed Forces of the United States when in uniform. 

Public Law 140, approved September 1, 1951, amends section 3508 

of the Internal Revenue Code to extend the termination date for the 

tax on sugar from June 30, 1953, to June 30, 1957. 

Public Law 145, approved September 14, 1951, extends the provisions of sections 9 and 10 of the Federal Trade Commission Act to 

authorize the requirement by subpoena of the attendance and testimony of witnesses and the production of documentary evidence at 

hearings respecting denials and revocations of industrial alcohol 

permits; and authorizes the Secretary of the Treasury to grant extensions of time not beyond November 15, 1951, for filing the income 

tax return of any corporation subject to the excess profits tax for a 

taxable year ending after June 30, 1950, and before February 1, 1951. 

Public Law 161, approved October 10, 1951, amends section 2801(c) 

(1) of the Internal Revenue Code to exempt from the rectification tax 

certain blends of whiskies and brandies when reduced to as low as 

80° of proof. 

Public Law 166, approved October 10, 1951, amends that part of 

section 437(c) of the Internal Revenue Code, relating to the definition 

of equity capital of an insurance company, so as to provide for the 

allowance of a credit for the reserves of marine insurance companies 

and mutual fire insurance companies issuing perpetual policies, with 

respect to the inclusion of their reserves in the computation of their 

invested capital credit for the purpose of determining the excess profits 

tax. 

Public Law 183 (Revenue Act of 1951), approved October 20, 1951, 

increases the combined normal tax and surtax on individuals by 

11% percent, the increased rates to terminate on December 31, 1953; 

increases the normal tax on corporations from 25 percent to 30 percent, and the tax on capital gains from 25 percent to 26 percent, such 

increases to terminate on March 31, 1953; provides new withholding 

rates and tables to take into account the increased tax rates; provides 

for a head of household approximately one-half of the income-splitting 

benefits available to a husband and wife who file a joint return; 

excludes from gross income, not exceeding $5,000, amounts' paid by 

an employer to beneficiaries of deceased employees under an agreement legally obligating the employer to pay such amounts; provides 

for the exclusion from gross income of income attributable to the 

discharge of certain indebtedness in the case of a corporation conREPORT ON OPERATIONS 49 

sent] g to a reduction in the basis of its properties in an amount 

equal to the amount excluded; extends to January 1, 1954, the expiration date relating to the exclusion from gross income of compensation of members of the Armed Forces received for service in 

combat zones, including compensation of military personnel received 

while hospitalized as a result of wounds, disease, or injury incurred 

while serving in a combat zone; eliminates the five percent limitation 

with respect to the deduction of medical expenses paid during the 

taxable year in cases where the taxpayer or his spouse attains the 

age of 65 years before the close of the taxable year; permits the 

changing of an election respecting the taking of the standard deduction; raises from $500 to $600 the amount of gross income which a 

person may receive without losing his status as a dependent of a 

taxpayer; permits a taxpayer and his spouse to file a joint return 

after having filed individual returns for the taxable year; removes 

the exemption of mutual savings banks, building and loan associations, 

and cooperative banks from the income tax; taxes certain farmers' 

marketing and purchasing cooperatives on certain net earnings which 

are retained without- allocation to patrons, and generally requires 

cooperatives to file information returns with the Bureau of Internal 

Revenue; eliminates capital gains in the computation of net income 

for the purpose of computing the additional tax under section 102 

of the Internal Revenue Code for improperly accumulating surplus; 

provides for the nonrecognition of gain to a stockholder from the 

receipt of stock when a corporation "spins off" a part of its assets to 

a corporation formed to receive such assets and receives back all the 

stock of the corporation so formed; provides for the nonrecognition 

of gain to a taxpayer in the sale of his residence when within specified 

periods he purchases or constructs another residence; liberalizes the 

requirements for the exemption from taxation of income earned by 

a United States citizen for personal services rendered in a foreign 

country; provides for treatment as a capital gain of livestock held for 

12 months or more for draft, breeding, or dairy purposes; provides 

for capital gain treatment of a lump-sum payment received by an 

employee upon termination of his employment, in return for a release of all rights to a percentage of his former employer's future 

profits; permits net operating losses for 1948 and 1949 to be carried 

forward 3 years; provides that if the grant of a restricted stock option 

is subject to stockholder approval, the date of the grant of the option 

shall be determined as if the option had not been subject to such 

approval; authorizes the Secretary of the Treasury to require information returns reporting interest in any amounts; abates certain 

income taxes in the case of members of the Armed Forces who die 

while serving in a combat zone; subjects Government colleges, universities, and their wholly-owned corporations to the tax on unrelated 

business net income; provides that expenditures paid or incurred 

prior to the development stage of a mine, for ascertaining existence 

or quality of ore may, to the extent of $75,000 in any taxable year, 

be deducted in computing taxable income; permits an individual in 

his computation of a net operating loss, to take into account property losses arising from fire, storm, shipwreck, or other casualty, or 

from theft, even though such losses are on nonbusiness property; 

removes the tax on free admissions; restores generally the exemptions 
50 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

from the admissions tax which were in effect prior to October 1, 1941; 

increases the tax on cigarettes 50 cents per thousand; imposes a tax 

of 2 cents a gallon on fuel used in a diesel highway vehicle; temporarily increases the tax on alcoholic beverages; imposes an excise and 

occupational tax upon wagering; temporarily increases the tax on 

trucks, busses, passenger automobiles, and motorcycles; repeals the 

tax on electrical energy for domestic or commercial consumption; 

temporarily increases the tax on gasoline; reduces the tax on domestic 

telegraph, cable, or radio messages; exempts from the tax on telephone 

messages, payments for telephone messages originating within a combat zone from a member of the Armed Forces performing service in 

the zone; reduces the percentage of the average base period net income to be taken into account in computing the excess profits credit 

based on income; provides a credit against the estate tax for the foreign 

death tax paid on property situated in a foreign country when such 

property is included in the gross estate of a resident or citizen of the 

United States; excludes from the additional estate tax imposed by 

subchapter B of chapter 3 of the Code the transfer of the net estate 

of a citizen or resident of the United States dying after June 24, 1950, 

and before January 1, 1954, while in active service in the Armed 

Forces of the United States; and removes from the tax-exempt status 

the expense allowance provided for the President, the Vice President, 

the Speaker of the House, and Members of Congress. 

Public Law 215, approved October 26, 1951, authorizing the dispensing of habit-forming or toxic drugs under certain conditions provided m the Federal Food, Drug, and Cosmetic Act, provides that 

nothing therein contained shall relieve any person from any requirement prescribed by or under authority of law respecting opium, coca 

leaves, isonipecaine, or opiate mentioned in section 3220 of the 

Internal Revenue Code or marihuana as defined in section 3238 of 

the Code. 

Public Law 247, approved October 31, 1951, repeals section 3796 

of the Internal Revenue Code respecting the purchase of stationery 

for the Internal Revenue Service and section 3945 of the Code respecting the payment to collectors of certain office expenses. 

Public Law 251, approved October 31, 1951, provides for the nonrecognition of gain in cases in which, prior to the receipt of the proceeds 

for property compulsorily or involuntarily converted, the taxpayer 

purchases replacement property similar or related in service or use 

to the property converted or purchases stock in the acquisition of 

control of a corporation owning such property, to the extent that the 

amount realized upon such conversion does not exceed the cost of the 

other property, and for the recognition of loss in such cases. 

Public Law 255, approved November 2, 1951, provides increased 

and uniform penalties for violations of certain provisions of the 

Narcotic Drugs Import and Export Act and the Internal Revenue 

Code with respect to narcotics and marihuana. 

EIGHTY-SECOND CONGRESS, SECOND SESSION 

Public Law 352, approved May 21, 1952, exempts unperforated 

microfilm from the excise tax imposed on photographic apparatus by 

section 3406 of the Internal Revenue Code. 

REPORT ON OPERATIONS 51 

Public Law 353, approved May 21, 1952, applies the same tax 

provided by section 2720(a) of the Internal Revenue Code with 

respect to the transfer of machine guns and short-barreled firearms 

upon the making of such weapons, subject to certain exceptions and 

requires a declaration of intention to be filed, in accordance with 

regulations prescribed by the Secretary, prior to such making. 

Public Law 355, approved May 22, 1952, exempts from the rectification tax imposed on spirits and wines by section 2800 (a)(5) of the 

Internal Revenue Code vodka produced from pure spirits in the 

manner authorized at registered distilleries. 

Public Law 361, approved May 23, 1952, exempts from the stamp 

transfer taxes the delivery of stocks and instruments to a trustee, 

when made pursuant to a law to secure the performance of an obligation, and the redelivery of such stocks and instruments to the transferor. 

Public Law 386, approved June 10, 1952, repeals chapter 8 of the 

Internal Revenue Code imposing the Alaska Railroads tax. 

Public Law 391, approved June 12, 1952, exempts coconut oil 

produced in, or produced from materials grown in, the trust territory 

of the Pacific Islands from the additional tax of 2 cents per pound 

imposed by section 2470(a)(2) of the Internal Revenue Code. 

- Reorganization Plan No. 1 of 1952, which became effective, pursuant 

to section 6 of the Reorganization Act of 1949, on March 15, 1952, 

provided for the abolition within the Bureau of Internal Revenue of the 

offices of assistant commissioner, special deputy commissioner, deputy 

commissioner, assistant general counsel for the Bureau of Internal 

Revenue, collector, and deputy collector on or before December 1, 

1952, and the establishment of not to exceed 99 new offices, appointments to which shall be made by the Secretary of the Treasury under 

the classified civil service. 

229047 53-5 
REORGANIZATION OF THE INTERNAL 

REVENUE SERVICE 
RECORD OF REORGANIZATION 

History of the reorganization.—The reorganization of the Internal 

Revenue Service is the culmination of a long series of actions taken 

to meet the responsibilities which have resulted from changes in the 

Federal tax system during the past decade. 

World War II overwhelmed the Bureau's collection and auditing 

machinery, geared to handle a relatively small number of prewar 

returns, by adding an army of taxpayers as incomes grew and exemptions were lowered. In the past decade the number of returns has 

increased fourfold and the volume of tax collections tenfold. With 

the broadening of the base of the personal income tax, wage and 

salary withholding was introduced, creating many new problems, not 

the least of which was that of mass refunding operations. The excess 

profits tax, the extension of social security coverage, and the wagering 

tax have each made a new and substantial contribution to the workload. Our tax system today bears little resemblance to that of 1940. 

The heavy volume of recent tax legislation, designed to finance 

defense expenditures, has strained severely the administrative forces 

of the Revenue Service. In the space of a little more than a year the 

Bureau's staff has been required to assimilate four major enactments—

the Social Security Act of 1950, the Revenue Act of 1950, the Excess Profits Tax Act of 1950, and the Revenue Act of 1951. These 

developments have been accompanied by an increase in appellate work 

and cases in litigation. 

By 1946 the tremendous expansion which took place during World 

War II had already revealed many organizational and procedural 

weaknesses. In such a period of vastly increased activity, the disruption of day-to-day operations would have had serious repercussions. 

Every change had to be well thought out and every detail considered 

before its initiation. 

With this thought in mind, the Secretary of the Treasury introduced 

on a trial basis a work simplification program of management improvement in the Bureau which started at the lowest supervisory level. 

This program was coupled with the establishment of an employee 

incentive award system, in order to tap the accumulated knowledge 

and experience of every employee, and constituted the first step on 

the road to reorganization. This program was officially adopted and 

expanded to include the entire Revenue Service in 1947. 

At the same time, management improvement efforts were started 

in other directions. In October 1946 the first large-scale conference 

in several years was held in Washington between field and departmental officials of the Revenue Service m order to survey its operational 

and administrative problems. A month later there was established 

a special committee on administration to analyze the suggestions 

made at this conference. The next step was the creation of a committee of highly qualified men from both inside and outside Govern55 
56 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

ment to direct the management studies of the Internal Revenue 

Service and to act as consultant in the solution of administrative 

problems. The Congress also took an active interest in the improvement of 

the Bureau's operations. The House Committee on Appropriations 

made a number of recommendations, and the Advisory Group to the 

Joint Committee on Internal Revenue Taxation also submitted a 

series of recommendations. Virtually all these recommendations 

were adopted. In April of 1948 a Management Staff was created in the Commissioner's office to assist him in integrating and coordinating the various 

diverse functions of the Bureau. This group, under the direction of 

the Assistant to the Commissioner, was selected from employees who 

were technicians and specialists widely experienced in the various 

technical, procedural, and basic operational aspects of the Bureau. 

This Staff has been of considerable assistance to the Commissioner in 

advising him on matters relevant to effective management and operation, and in furnishing facts and opinions to serve as a basis for 

action and policy formulation. 

One of the outstanding management firms in the country was 

engaged in September 1948 to make a comprehensive analysis of the 

organization and procedures of the Bureau. The firm's report and 

recommendations were received in August 1949. 

All of these improvements took time—time to plan, and time to 

install—before their full benefits could be realized. The present 

Reorganization Plan brings to fruition intensive studies which have 

been under way much of the time since 1947 when the management 

improvement program was begun. Not only does the reorganization 

seek to repair basic weaknesses in the old structure, but it includes 

pr ovisions for further improvements which will be ma,de in the future. 

Enactment of Reorganization Plan No. 1—Recent Congressional 

investigations focused public attention on the need for a Revenue 

Service completely responsive to top direction and control and free 

of the defects of the old system, among which were political appointment of collectors, assistant commissioners, and the Chief Counsel; 

scattered ruling and policy-making authority; and lack of an integrated inspection service. 

The President accordingly submitted Reorganization Plan No. 1 

of 1952 to the Congress on January 14, 1952 (Exhibit A to this report 

sets forth the Plan and the President's message transmitting it to the 

Congress). Motions to defeat the plan were disapproved by both 

the House of Representatives and the Senate, and the plan became 

effective March 15, 1952. 

Provisions of the Plan—Reorganization Plan No. 1 is a relatively 

simple plan. In essence, it abolishes all appointive offices in the 

Bureau except that of Commissioner. It furnishes the framework 

for a reorganization of the headquarters office in Washington by providing for the appointment under the classified civil service of the 

assistant commissioners and an assistant general counsel, who serves 

as Chief Counsel of the Bureau. Formerly these were all political 

appointments. The plan furnishes the framework for the reorganization of the field service by providing for not more than 25 new 

offices and 70 suboffices, and it permits assignment of supergradesREORGANIZATION OF THE INTERNAL REVENUE SERVICE 57 

grades 16 through 18 —to some of the newly established positions in 

order to obtain and hold persons with top qualifications. The entire 

plan is set forth in five short paragraphs. (See Exhibit A.) 

These few simple paragraphs, however, make possible far-reaching 

changes in the century-old structure of the Bureau. The former 

basis of organization for most of the divisions and offices of the Bureau 

with the exception of the collectors' offices, depended upon the type 

of tax collected—for example, the Bureau had an Income Tax Division, an Excise Tax Division, and an Employment Tax Division. 

Under the old organizational structure of the Bureau some 200 main 

field offices reported to the Commissioner through seven more or less 

autonomous divisions at Washington. Included in the 200 main 

field offices were 64 offices engaged in the two-fold task of collecting 

taxes and auditing the smaller returns; 39 audited the larger classes 

of returns; 14 dealt only with the fraud aspects of tax cases; 15 

enforced the alcohol and tobacco taxes; and 12 were district offices of 

the Bureau's Appellate Staff. Over two thousand subordinate offices 

and posts were under the supervision of these main field offices. 

In the present organizational structure, three fundamental changes 

have been made. First, the actual basis for organization of the 

Bureau (see Exhibit B) has been changed from type of tax collected 

to purpose or function. For example, there are now a Collection 

Division, an Audit Division, and an Appellate Division. Each 

handles all types of tax returns. 

The only exception to this principle of functional organization 

is the semisegregated status of the alcohol and tobacco tax operations. 

The responsibilities in collecting these taxes have unique characteristics, not entirely of tax administration, but rather of industry 

regulation and suppression of unlawful operations by police activity. 

In the words of a Bureau official, it was decided "not to make a 

fetish of rigid consistency in the face of inconsistent circumstances." 

The unique character of this policing function accordingly was 

recognized and a separate Alcohol and Tobacco Tax Division 

established. 

The second basic change called for complete revamping of the 

organizational framework of the Bureau and drawing new lines of 

reporting authority and responsibility. 

At Washington there are now three Assistant Commissioners of 

equal rank. Each has responsibility for one of the three major functions at the headquarters level—technical tax work, direction of 

inspection activities, and management of field operations. The 

Assistant Commissioner (Operations) has a direct line of control over 

all field offices, except those of the Chief Counsel and the Inspection 

Service. 

In addition to the three Assistant Commissioners, there are four 

other principal officials in the Commissioner's immediate office. These 

are the Assistant to the Commissioner, who heads the Commissioner's 

Management Staff; the Administrative Assistant to the Commissioner, 

who supervises the activities of the Personnel, Budget and Finance 

Training, Statistical, and Administrative Divisions; the Technical 

Reviewer; and the Information Officer. The Chief Counsel of the 

Bureau continues to be the principal legal adviser to the Commissioner. 

60 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

a smooth transition to the new plan of organization, and to provide a 

firm foundation for future understanding of each other's problems. 

For example, about a month prior to the establishment of the newly 

reorganized Chicago district—the first to be established—a key 

Revenue official from Illinois was brought to headquarters to work 

closely with the installation group. Then, just prior to the installation, the new district commissioner and other top officials came to 

Washington for several days' intensive indoctrination. In addition, 

2 weeks before the event, an installation team was appointed in the 

district and a representative of the headquarters' installation group 

was sent to Chicago to provide liaison. A few days in advance of the 

installation, the entire installation group went to Chicago to complete 

the final arrangements with local internal revenue officials. During 

most of the planning and arrangements an observer from the New 

York district, which was next on the slate for reorganization, was 

present. 

On May 20, 1952, ceremonies were held in Chicago, establishing the 

first of the new internal revenue districts and installing the new 

district commissioner, directors of internal revenue, and eight other 

key officials. Among the speakers on this occasion were the Secretary 

of the Treasury, the Under Secretary of the Treasury, the Commissioner of Internal Revenue, and the Executive Director of the Civil 

Service Commission Following the ceremonies a seminar was held 

by Bureau officials to explain the reorganization to local tax attorneys 

and accountants. A series of internal revenue supervisors' meetings 

also was held to discuss the reorganization and clear up questions 

concerning their own work under the new system. 

Another aspect of the Chicago installation which deserves mention 

is the space problem. One objective of the reorganization is to house 

all internal revenue offices in each city under a single roof. Although 

this necessarily will have to be a long-term project in many areas, 

Bureau and Treasury space experts, working in cooperation with the 

General Services Administration, were able to obtain contiguous space 

in the State Madison Building to house all Federal revenue activities 

in Chicago. 

In planning the Chicago installation, the installation group took 

a flexible approach, attempting to work out the best methods and 

order of procedure. As a result of this experience, a comprehensive 

installation manual was developed showing the step-by-step procedure 

for reorganizing each district, and including sample forms, orders, etc. 

The manual was developed for use by district officials who are responsible for various phases of the reorganization. It was first used in the 

establishment of the second district, in New York, on June 30, 1952. 

The Bureau entered the third phase of the reorganization on August 

11, 1952, when ceremonies were held in Washington to announce the 

reorganization of the headquarters office and install the new headquarters officials. These were the three Assistant Commissioners, four 

other principal officials in the Commissioner's office, and the Chief 

Counsel. (As originally planned, reorganization of headquarters in 

Washington would have preceded the establishment of all of the new 

district offices, but to speed the field reorganization, in view of the 

December 1 deadline, it was decided to proceed with the first two 

district installations.) 

REORGANIZATION OF THE INTERNAL REVENUE SERVICE 61 

In carrying out the Washington headquarters reorganization, the 

special task force prepared sets of organization charts and detailed 

functional descriptions covering both immediate changes and ultimate 

objectives. The installation group also engaged in the same detailed 

planning for the headquarters installation that had been done for the 

previous district installations in Chicago and New York. 

The Bureau now entered the fourth phase of the reorganization 

program—the establishment of the remaining districts. Two additional districts—Baltimore and Buffalo—had been established by the 

end of September, and other installations were to follow rapidly 

until December 1. 

With the further perfection of the installation manual, which covers 

not only steps preliminary to the establishment of new districts but 

each further step necessary to implement the district reorganization, 

there has been a steadily decreasing need for assistance from Washington. Target dates have been set, however, for the various steps 

of each reorganization and its subsequent detail work, and the new 

district commissioners are required to submit regular progress reports. 

One of the most important administrative problems encountered 

during the course of the reorganization has been that of recruiting 

personnel to fill the new key positions established by the plan. The 

speed with which this could be accomplished has in part determined 

the order of establishing the new districts, and this made it difficult 

to adhere to any pre-arranged time schedule. 

It was realized that first consideration should be given to experienced internal revenue employees in filling these positions. This was 

not only in accord with the promotion policies of the Treasury Department, but was also highly desirable where the positions required 

practical, working knowledge of the technical operations of the revenue system. 

A Personnel Selection Board was appointed to nominate candidates 

for the key field positions of district commissioner, assistant district 

commissioner—of which there are six in each district—and director 

of internal revenue. This Board included the Bureau's Assistant 

Commissioner (Operations), the Treasury Department's Director of 

Personnel, the Assistant to the Fiscal Assistant Secretary, the 

Director of the Inspection Service, and the Chief of the Intelligence 

Division. 

Every employee whose position or grade indicated that he would 

be qualified for one of the key positions was considered automatically 

by the Board. All other employees who believed they met the Civil 

Service qualification standards for these positions were invited to 

apply to the Board for consideration. For certain positions in which 

knowledge of Bureau operations was not essential, applications were 

also invited from employees outside the Bureau who had Civil Service 

status. 

In the course of this selection process, the Selection Board has 

traveled to all sections of the country to interview applicants. The 

Board has considered 1,835 applications and interviewed 654 

candidates. Eligibles recommended by the Board were ranked in 

order of preference for consideration by the Commissioner and recommendation to the Secretary of the Treasury for final selection. 

Following this, the names were submitted to the Civil Service Com- 
• 

62 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

mission for thorough investigation of the ability and fitness of the 

applicants, a process which followed along the same lines as an unassembled Civil Service examination. 

Collectors of internal revenue who had Civil Service status have 

been given the same consideration for the new position of director as 

other employees of the Bureau. The other (nonstatus) collectors 

have had to qualify through open, competitive examination by the 

Civil Service Commission before they could be considered. The 

Commission has held such examinations for the position of director 

in 26 locations. 

To select nominees for subordinate positions in the district commissioners' and directors' offices, district selection boards have been 

set up in the field. These boards are composed of the top officials 

in the district offices as well as the directors. 

ADVANTAGES OF THE REORGANIZATION 

Many of the administrative advantages of the reorganization are 

readily apparent from the description of the old and new structure of 

the Bureau. In summary, however, the principal benefits to be 

expected, in terms of the results of the major changes made in the 

organization, are as follows: 

l'irst, the abolishment of all appointive offices except that of Commissioner makes it possible for the Bureau to be completely a career 

service, with all the attendant administrative gains. For the first 

time, the Bureau has full control over the actions of all employees 

and is able to assume full responsibility for such actions. All positions 

are filled solely on the basis of competence and integrity, and continuity of tenure and promotion on the basis of merit are assured. 

In addition, greater flexibility in assigning personnel is possible, 

because key officials can be transferred from one area to another as 

required. 

Second, the changes result in a fully responsive and fully responsible 

field organization. There is one unified line of command from the 

Secretary to the Under Secretary, Commissioner, Assistant Commissioner (Operations), district commissioners, and directors. This permits clear and extensive delegations of authority. 

Establishment of a system of strong district offices reduces the 

number of field offices reporting to Washington and facilitates their 

closer supervision and control. Out of this will come more uniform 

administration of the tax laws. Moreover, with more direct control 

over field operations and a strong Inspection Service, many functions 

can be safely decentralized, thus allowing the headquarters office in 

Washington to place more concentration on executive direction, planning, and research. At headquarters, integration of field operations 

at a high level in the organization permits more efficient planning 

• and coordination than were previously possible. 

With all revenue offices brought together under the director, more 

effective planning is also possible at the field level. Greater flexibility 

and more effective utilization of manpower and equipment are possible. A large number of interoffice routines are being eliminated. 

Furthermore, it will be possible to centralize many large-scale processing and filing operations, and to consolidate certain common services 

such as property management, and personnel and payroll operations. 

REORGANIZATION OF THE INTERNAL REVENUE SERVICE 63 

The reorganization of the Bureau according to purpose or function, 

rather than by type of tax, opens the third large area of probable 

benefit. For example, lack of sufficient enforcement personnel is 

one of the most serious problems of the Bureau, and bringing together 

these slender resources in the new Audit Division makes it possible 

to apply these resources more effectively. One visit by Bureau 

representatives to examine all classes of returns is possible, instead 

of separate examiners making separate calls for each kind of tax—

income, excise, etc. This saves the manpower of the Bureau and 

provides greater convenience to the taxpaying public. 

The new functional arrangement brings the whole revenue service 

to the people, as it is not necessary for a person to travel outside his 

own home State to take care of any normal tax matter. Each State 

has at least one director's office, and in this office are combined the 

functions formerly carried on at scattered points, in some instances 

outside the State boundaries. 

The functional organization plan also provides a revenue system 

readily adaptable to changes in tax structure, and this will be of 

particular value in times of national emergency. Administration 

in the field offices will be improved greatly as a result of the 

establishment of the office of Assistant District Commissioner for 

Administration. The former field installations were not well equipped 

to handle administrative matters. 

And, fourth, the strong, independent Inspection Service assures 

thorough and continuing checks on the conduct of Bureau employees 

and the performance of the Bureau's field offices. 
EXHIBIT A 

Reorganization Plan for the Internal Revenue Service 

and accompanying message, as submitted to the 

Congress by the President 

65 
To the Congress of the United States: 

I transmit herewith Reorganization Plan No. 1 of 1952, prepared 

in accordance with the Reorganization Act of 1949 and providing for 

reorganizations in the Bureau of Internal Revenue of the Department of the Treasury. 

A comprehensive reorganization of that Bureau is necessary both 

to increase the efficiency of its operations and to provide better 

machinery for assuring honest and impartial administration of the 

internal revenue laws. The reorganization plan transmitted with 

this message is essential to accomplish the basic changes in the 

structure of the Bureau of Internal Revenue which are necessary for 

the kind of comprehensive reorganization that is now required. 

By bringing additional personnel in the Bureau of Internal Revenue under the merit system, Reorganization Plan No. 1 likewise 

removes what the Commission on Organization of the Executive 

Branch of the Government described as "one of the chief handicaps 

to effective organization of the Department * * *" 

It is my determination to maintain the highest standards of integrity and efficiency in the Federal service. While those standards 

have been observed faithfully by all but a relatively few public 

servants, the betrayal of their trust by those few demands the strongest corrective action. 

The most vigorous efforts are being and will continue to be made 

to expose and punish every Government employee who misuses his 

official position. But we must do even more than this. We must 

correct every defect in organization that contributes to inefficient 

management and thus affords the opportunity for improper conduct. 

The thorough reorganization of the Bureau of Internal Revenue 

which I propose will be of great help in accomplishing all of these 

ends. It is an integral part of a program to prevent improper conduct in public service, to protect the Government from insidious 

influence peddlers and favor seekers, to expose and punish wrongdoers, and to improve the management and efficiency of the executive 

branch. 

I am confident that the Congress and the public are as deeply and 

earnestly concerned as I am that the public business be conducted 

entirely upon a basis of fairness, integrity, and efficiency. I therefore hope that the Congress will give speedy approval to Reorganization Plan No. 1, in order that we may move ahead rapidly in achieving 

the reorganization of the Bureau of Internal Revenue. 

The task of collecting the internal revenue has expanded enormously 

within the past decade. This expansion has been occasioned by the 

necessary additional taxation brought on by World War II and essential postwar programs. In fiscal year 1940, tax collections made 

by the Bureau of Internal Revenue were slightly over 5% billions of 

dollars; in 1951, they totaled almost UN billions. In 1940, 19 million 

229047-53-0 67 
68 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

tax returns were filed; in 1951, 82 million. In 1940, there were 22,000 

employees working for the Bureau; in 1951, there were 57,000. 

Throughout this tremendous growth, the structure of the revenue 

collecting organization has remained substantially unchanged. The 

present field structure of the Bureau of Internal Revenue is comprised 

of more than 200 field offices which report directly to Washington. 

Those 200 offices carry out their functions through more than 2,000 

suboffices and posts of duty throughout the country. The Washington office now provides operating supervision, guidance, and control 

over the principal field offices through 10 separate divisions, thus 

further adding to the complexities of administration. 

Since the end of World War II, many procedural improvements have 

been made in the Bureau's operations. The use of automatic machines 

has been greatly increased. The handling of cases has been simplified. One major advance is represented by the recently completed 

arrangements to expedite criminal prosecutions in tax fraud cases. 

In these cases, field representatives of the Bureau of Internal Revenue 

will make recommendations for criminal prosecutions directly to the 

Department of Justice. These procedural changes have increased the 

Bureau's efficiency and have made it possible for the Bureau to carry 

its enormously increased workload. However, improvements in 

procedure cannot meet the need for organizational changes. 

Part of the authority necessary to make a comprehensive reorganization was provided in Reorganization Plan No. 26 of 1950, which 

was one of several uniform plans giving department heads fuller 

authority over internal organizations throughout their departments. 

The studies of the Secretary of the Treasury have culminated since 

that time in a plan for extensive reorganization and modernization of 

the Bureau. However, his existing authority is not broad enough to 

permit him to effectuate all of the basic features of the plan he has 

developed. 

The principal barrier to effective organization and administration 

of the Bureau of Internal Revenue which plan No. 1 removes is the 

archaic statutory office of collector of internal revenue. Since the 

collectors are not appointed and cannot be removed by the Commissioner of Internal Revenue or the Secretary of the Treasury, and since 

the collectors must accommodate themselves to local political situations, they are not fully responsive to the control of their superiors in 

the Treasury Department. Residence requirements prevent moving 

a collector from one collection district to another, either to promote 

impartiality and fairness or to advance collectors to more important 

positions. Uncertainties of tenure add to the difficulty of attracting 

to such offices persons who are well versed in the intricacies of the 

revenue laws and possessed of broad-gauged administrative ability. 

It is appropriate and desirable that major political offices in the 

executive branch of the Government be filled by persons who are 

appointed by the President by and with the advice and consent of 

the Senate. On the other hand, the technical nature of much of the 

Government's work today makes it equally appropriate and desirable 

that positions of other types be in the professional career service. 

The administration of our internal revenue laws at the local level 

calls for positions in the latter category. 

EXHIBITS 69 

Instead of the present organization built around the offices of 

politically-appointed collectors of internal revenue, plan No. 1 will 

make it possible for the Secretary of the Treasury to establish not to 

exceed 25 district offices. Each of these offices will be headed by a 

district commissioner who will be responsible to the Commissioner of 

Internal Revenue and will have full responsibility for administering 

all internal revenue activities within a designated area. In addition, 

all essential collection, enforcement, and appellate functions can be 

provided for in each local area and under one roof so far as is practicable. It is not proposed to discontinue any essential facilities which 

now exist in any local areas Rather, the facilities will be extended 

and the service to taxpayers improved. These new arrangements 

should make it possible for the individual taxpayer to conduct his 

business with the Bureau much more conveniently and expeditiously. 

In addition to making possible greatly improved service to the 

taxpayer, the establishment of the district offices will provide opportunity in the field service of the Bureau of Internal Revenue for 

the development of high caliber administrators with experience in 

all phases of revenue administration. These offices will be the backbone of a modern streamlined pattern of organization and operations 

with clear and direct channels of responsibility and supervision from 

the lowest field office to the Commissioner, and through him to the 

Secretary of the Treasury. The creation of this new framework of 

district offices is a necessary step in carrying out the over-all reorganization of the Bureau. 

Plan No. 1 also makes it possible to provide a new framework of 

supervisory offices in the headquarters of the Bureau of Internal 

Revenue. Under plan No. 1, the offices of Deputy Commissioner, 

Special Deputy Commissioner, and Assistant Commissioner are 

abolished. Three Assistant Commissioners, all in the classified civil 

service, are authorized, and will be available to perform such functions 

as may be assigned to them. The intention of the Secretary of the 

Treasury under the comprehensive reorganization is to utilize one 

Assistant Commissioner to assist the Commissioner of Internal 

Revenue in supervising the operations of the district offices, another 

Assistant Commissioner to aid in the preparation of technical rulings 

and decisions, and the third Assistant Commissioner to supervise for 

the Commissioner the inspection activities of the Bureau. 

Two additional advantages will be obtained when the reorganization around this new framework is completed. 

First, the strong inspection service which the Secretary is establishing will keep the work of the Bureau under close and continuous 

observation. Working under the direct control of the Commissioner 

of Internal Revenue, it will be responsible for promptly detecting and 

investigating any irregularities. 

Second, the new pattern of organization will strengthen and clarify 

lines of responsibility throughout the Bureau, thus simplifying and 

making more effective and uniform the management control of the 

organization. This is essential in any effort to provide our principal 

revenue collection agency the best possible administration. 

In circler to eliminate Presidential appointment and Senatorial 

confirmation with respect to the Assistant General Counsel for the 

Bureau of Internal Revenue, and in order to provide a method of 
70 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

appointment comparable to that obtaining in the case of other 

assistant general counsel of the Department of the Treashry, plan 

No. 1 abolishes that office and provides in lieu thereof a new office of 

Assistant General Counsel with appointment under the classified 

civil service. 

The success of the reorganization of the Bureau of Internal Revenue 

will to a considerable extent depend upon the ability to attract the 

best qualified persons to the key positions throughout the Bureau. 

In order to do so, it is necessary to make provision for more adequate 

salaries for such key positions. Plan No. 1 establishes in the Bureau 

of Internal Revenue a maximum of 70 offices with titles determined 

by the Secretary of the Treasury. Those offices are in addition to 

the offices with specific titles also provided for in plan No. 1 and to 

any positions established under other authority vested in the Department of the Treasury. The compensation of these officials will be 

fixed under the Classification Act of 1949, as amended, but without 

regard to the numerical limitations on positions set forth in section 

505 of that act. This provision will enable the Chairman of the Civil 

Service Commission, or the President, as the case may be, to fix 

rates of pay for those offices in excess of the rates established in the 

Classification Act of 1949 for Grade GS-15 whenever the standards 

of the classification laws so permit. 

All organizational changes under plan No. 1 will be put into effect 

as soon as it is possible to do so without disrupting the continued 

collection of revenue. Plan No. 1 will in any event be effective in 

its entirety no later than December 1, 1952. 

The taking effect of the reorganizations provided for in Reorganization Plan No. 1 of 1952 will make possible many benefits in improved 

organization and operations which may be expected to produce substantial savings in future years. Those savings should not be expected 

to be reflected in an immediate reduction in expenditure by the 

Bureau of Internal Revenue but in an improved service to the public 

and a more efficient collection of revenue. 

It should be emphasized that abolition by plan No. 1 of the offices 

of collectors and others will in no way prejudice any right or potential 

right of any taxpayer. The abolition of offices by plan No. 1 will not 

abolish any rights, privileges, powers, duties, immunities, liabilities, 

obligations, or other attributes of those offices except as they relate 

to matters of appointment, tenure, and compensation inconsistent 

with plan No. 1. Under the Reorganization Act of 1949, all of these 

attributes of office will attach to the office to which the functions of 

the abolished office are delegated by the Secretary of the Treasury. 

After investigation, I have found and hereby declare that each 

reorganization included in Reorganization Plan No. 1 of 1952 is 

necessary to accomplish one or more of the purposes set forth in 

section 2(a) of the Reorganization Act of 1949. 

I have found and hereby declare that it is necessary to include in 

the accompanying Reorganization Plan No. 1, by reason of reorganizations made thereby, provisions for the appointment and compensation of the officers specified therein. The rates of compensation fixed 

for these officers are not in excess of those which I have found to 

prevail in respect of comparable officers in the executive branch. 

EXHIBITS 71 

I cannot emphasize too strongly the importance which should be 

attached to the reorganization plan that I am now transmitting to 

the Congress. The fair and efficient administration of the Federal 

internal revenue laws is of vital concern to every citizen. All of us 

have a right to insist that the Bureau of Internal Revenue be provided 

with the finest organization that can be devised. All of us are entitled 

to have that organization manned by personnel who get their jobs 

and keep them solely because of their own integrity and competence. 

This reorganization plan will be a major step in achieving those 

objectives. 

HARRY S. TRUMAN. 

THE WHITE HOUSE, 

January 14, 1952. 

REORGANIZATION PLAN NO. 1 OF 1952 

Prepared by the President and transmitted to the Senate and the 

House of Representatives in Congress assembled, January 14, 1952, 

pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949. 

BUREAU OF INTERNAL REVENUE 

SECTION 1. Abolition of existing offices.—There are abolished the 

offices of Assistant Commissioner, Special Deputy Commissioner, 

Deputy Commissioner, Assistant General Counsel for the Bureau of 

Internal Revenue, Collector, and Deputy Collector, provided for in 

sections 3905, 3910, 3915, 3931, 3941, and 3990, respectively, of the 

Internal Revenue Code. The provisions of the foregoing sentence 

shall become effective with respect to each office abolished thereby 

at such time as the Secretary of the Treasury shall specify, but in no 

event later than December 1, 1952. The Secretary of the Treasury 

shall make such provisions as he shall deem necessary respecting the 

winding up of the affairs of any officer whose office is abolished by the provisions of this section. 

SEC. 2. Establishment of new offices.—(a) New offices are hereby 

established in the Bureau of Internal Revenue as follows: (1) three 

offices each of which shall have the title of "Assistant Commissioner 

of Internal Revenue"; (2) so many offices, not in excess of 25 existing 

at any one time, as the Secretary of the Treasury shall from time to 

time determine, each of which shall have the title of "District Commissioner of Internal Revenue"; and (3) so many other offices, not 

in excess of 70 existing at any one time, and with such title or titles, 

as the Secretary of the Treasury shall from time to time determine. 

(b) There is hereby established in the Department of the Treasury 

a new and additional office which shall have the title "Assistant 

General Counsel." 

SEC. 3. Appointment and compensation.—Each Assistant Commissioner and district commissioner, the Assistant General Counsel, and 

each other officer provided for in section 2 of this reorganization plan 

shall be appointed by the Secretary of the Treasury under the classified 

civil service and shall receive compensation which shall be fixed from 

time to time pursuant to the classification laws, as now or hereafter 
72 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

amended, except that the compensation may be fixed without regard 

to the numerical limitations on positions set forth in section 505 of 

the Classification Act of 1949, as amended (5 U. S. C. 1105). 

SEC. 4. Transfer of functions.—There are transferred to the Secretary of the Treasury the functions, if any, that have been vested by 

statute in officers, agencies, or employees of the Bureau of Internal 

Revenue of the Department of the Treasury since the effective date 

of Reorganization Plan No. 26 of 1950 (15 F. R. 4935). 

EXHIBIT B 

Charts showing organization of Bureau of Internal Revenue 

under Reorganization Plan No. 1 of 1952 

73 
ASSISTANT DISTRICT COMISSINERS FOR 

ANINISTRATIN 

COMEAU/IS 

AIM 

ATE/LIAM 

ALCOAL u0 TOBACCO TAX 

APPELLATE 

Flab Aria 

MSTRICT COUNSEL 

COMMISSIONER AS 

pc To ThE COYER 

0r4 wAMISSIL]ER 

FORMATION 

CAL RE]ILRR 

ASSISTANT COMISSIONER 

Inamical 

OFFICE OF INTEUATIAAL 

TAX AFL/TINS 

IFCRNICAL PLANNING 

AEC/MICA MINOS 

SPECIAL TECHNICAL SERVICES 

ASSISTANT COMISSIONER 

(colonic's, 

FIELD ANAGEMNI AND 

PLAARING 

COLLECTION] 

AUDIT 

INTELLIANCE 

ALCOHOL AND IVACO TA 

APPELLATE 

ASSISTANT COMA SSIONER 

IINspEcTIONI 

PLANA AO PROMANDA 

ANALYSIS An APPRAISA L 

PERSONNEL EVA/MOON 

LIAISON AND SPECIAL 

INYESTIBATIOS 

REVIEW 

ill137EATI. YE 

tlI IEF COUNSEL 

AW 1113711ATIA 

CLAM 

AFACENENT 

LITIGATION 

ISTRIC COINS 

OPT 

ALCOHOL MN 

TOBACCO TA 

APALLATE 

ENFORCEIMIT 

DISTRICT 

COMMISSIONER 

PECTO 

1111117/0111 COLLECTION AVIA AMA 0 SIAN DAMN 

CaMEMISEMANWPAZELAAM 

Amu,' C 

DIVISION 

DIRECTOR 

OF 

INTERNAL REVENUE 

MOLowIlm 

APPELLATE DIVISION 

BUREAU OF INTERNAL REVENUE 

DECEMBER 1,1552 

76 
REPORT OF (COMMISSIONER OF INTERNAL REVENUE 76 EXHIBITS 77 

COMMISSIONER 

CHIEF COUNSEL 

ASSISTANT 

CONISSIONER 

ASSISTANT 

CONIMSSICIWA 

(ATTuwas) 

ASSISTANT 

CANNISSIORTR 

DANNIAL 

estent 

ROOM* PI 

DISTRICT COMMISSIONERS 

INTERNAL REVENUE FIELD SERVICE 

DICIDABER 

ASS STANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT 

DISTRICT DISTRICT DISTRICT DISTRICT DISTRICT DISTRICT 

03INISSICHR COMMISSIONCR COMMISSIONER COINISSIONER COl&ISSIDER CONISSIOIER 

MINOTRATM Walla= /LOMA AND 

RIMCOO 11“ APPELLATI 

DIRECTORS 

ON 

INTERNAL REVENUE • 

(M) 

AICDNa 

ADMIPOSTRATI CZU.ECTION AUDIT INTELLIGEra APPELLATE 

DIVISION DIVISION DIVISION DIVISION TOBACCO T DIVISION 

DIVISION I I 

-1— —I8 

_r_ _r_ _r_ 

a 

9 N —TI 

3 

9 f t 

9 

-T- -T- 

-T- 
EXHIBIT C 

A REPORT TO TAXPAYERS 

WITH FOREWORD BY 

THE HONORABLE JOHN W. SNYDER, SECRETARY OF THE TREASURY 

Released by the Treasury Department, September 10, 1959 

79 
FOREWORD 

If the taxpayer is to understand what his Government is doing, he 

must be informed. One of the responsibilities of the Government is 

to inform him. 

The story that is told in these pages is one that few citizens could 

know if it were not made available by those who possess the facts. 

The story to my mind is an important and unusual chapter in the 

history of one of our most vital agencies, the Bureau of Internal 

Revenue. 

It is a remarkable story of determined progress toward improvements. As is frequently true when traveling a long mad through 

developing and expanding territory, we came upon one bad spot. 

It was found, unfortunately, that there were some employees who 

could not resist temptation and fell into irregularities. These have 

been firmly and courageously eliminated. While this bad spot slowed 

the way momentarily, the real story represents a period of persistent 

and successful effort to overcome extraordinary difficulties and to 

shape a service that fully merits public confidence. 

My associates in the Treasury and I are proud to have had a part 

in these achievements. They could not have been brought about, 

however, without the tireless and unstinting efforts of the Commissioner of Internal Revenue and the great body of associated workers 

in the Bureau itself; or without the alert interest and assistance of 

Congress and its committees concerned with internal revenue affairs: 

The Senate Committee on Government Operations, the House Committee on Expenditures in the Executive Departments, the House 

Committee on Ways and Means, the Senate and House Appropriations Committees, the Senate Finance Committee, the Joint Committee on Internal Revenue Taxation, the King Subcommittee on 

Administration of Internal Revenue Laws of the House Ways and 

Means Committee, and the Kefauver Special Senate Committee to 

Investigate Organized Crime in Interstate Commerce. Finally, this 

progress would not have been possible without the wholehearted and 

unflagging encouragement and backing of President Truman. 

I am sure the taxpayer will find this story one well worth his interest 

and his reading. The success of the efforts that have been made to 

provide the citizen with a sound internal revenue system will depend 

in considerable part on his understanding of what has been done and 

what is being done to give him the best possible service. 

JOHN W. SNYDER, 

Secretary of the Treasury. 

81 

84 REPORT OF COMMISSIONER OF INTERNAL REVENUE EXHIBITS 85 

audit, investigate, and enforce collections on all the returns involving 

understatements. For the same reason, the Bureau is unable to 

refund much that has been overpaid. To the extent, however, that 

returns can be examined, the Bureau voluntarily makes refunds of 

unintentional overpayments as readily as it asserts added taxes in 

the case of underpayments. 

THE NATURE OF THE BUREAU'S JOB 

The collection of taxes involves an especially personal and intimate 

relationship between the citizen and his Government. Paying taxes 

and voting represent the two functions that the average citizen regularly performs personally and directly, rather than through representative means, in the exercise of the privileges and obligations of 

citizenship. 

The tax collector is equally the trustee of the taxpayer and the 

Government. He must see that each citizen pays his full taxes as 

required by law. He must also see that no taxpayer is favored or 

discriminated against, or is overcharged, if he can prevent it. 

The tax collector also is the confidante of the citizen, in that he 

is entrusted not only with the taxes paid, but also with detailed 

facts about the citizen's personal and private financial affairs which 

are disclosed in the tax return. 

The Congress has determined by law that this confidence must be 

respected. The public disclosure of tax return information, except 

under specified conditions, is prohibited by law as being an unwarranted invasion of the citizen's privacy and as possibly endangering the willingness of the citizen to make full disclosure of his affairs, 

on which our voluntary system of self-assessment and payment is 

based. 

This required secrecy on tax returns sometimes results in public 

misunderstanding as to the Bureau's willingness to make full public 

disclosure of tax cases which have become matters of controversy. 

Responsible review of any tax case is, however, provided. Three 

Congressional committees may on request examine any tax return. 

A Congressional committee staff regularly reviews all refunds of more 

than $200,000, and these records are open to the public. All tax 

cases brought before the United States Court of Tax Appeals or any 

other court, and all prosecutions for fraud become public records. 

The President may also, by Executive order, authorize public disclosure of tax returns, and has, in fact, recently empowered the 

Secretary of the Treasury, at the latter's request, to release information on cases where tax debts are compromised in accordance with 

ability to pay, if this appears to serve the public interest. 

A compromise of tax debts also is not always understood. The 

power to accept a compromise offer is vested by law in the Commissioner of Internal Revenue. 

A compromise usually involves a case where there is no dispute as 

to the amount the taxpayer owes. The Government settles for a 

lesser amount if that is all that the Government can collect because 

the taxpayer has nothing more with which to pay. These may be 

persons gone bankrupt, widows whose inheritance has been only a 

tax debt, others who have suffered sharp business losses. 

The cases the public is most likely to hear about are the relatively 

few which involve large tax amounts. By far the largest number of 

cases compromised or removed from the collection records are those 

of small taxpayers. No field agent or lower official can write off a 

tax debt on his own authority. All compromise cases must be reviewed and approved at several levels, with final approval at the 

top administrative level. 

The public attention given to large tax cases also sometimes leads 

to the impression that large taxpayers are treated more leniently 

than small ones. This is not true. The large taxpayer is, in fact, 

given more thorough and careful attention. The taxpayer reporting 

an income of $25,000 or more is sure. to have his tax report audited 

and examined at least every 2 years. The taxpayer with earnings 

under $5,000 will rarely hear from the tax collector unless he has 

claimed an exemption to which he is not entitled. Examination has 

shown that seven out of ten of the $25,000 and over returns are likely 

to be in error, but errors, except for exemption claims, are rare among 

those reporting less than $5,000. 

The Government also concentrates its heaviest enforcement artillery 

on the potential cases of fraud and tax evasion, including gamblers 

and racketeers. Thirty-four percent of the cases recommended for 

prosecution in fiscal 1952 were in the gambler and racketeer category. 

These are some of the things about the nature of tax collecting 

with which the average taxpayer is often not familiar. They are, 

nevertheless, matters which concern him because they involve not 

only the proper and effective conduct of the Government's business, 

but also, in the case of taxes, his own personal affairs and interest. 

WAR STRAINS BROUGHT TAX STRAINS 

The foregoing portrays in brief the Bureau's operations in 1952. 

The same story could not have been told 6 years earlier. 

Present performance did not just happen. The taxpayer may be 

aware of some changes and improvements affecting him directly that 

have taken place since the end of the war in the collection of his taxes. 

He probably knows little or nothing of the critical problems in tax 

administration brought on by the war or of the things that have been 

done since the war to solve them. This report is to tell him something 

of those problems and how they have been met. 

No taxpayer needs to be reminded that one of the costs of World 

War II was higher taxes. Even though his earnings also increased, 

higher taxes created problems for him 

They also created serious problems for his tax collector. During 

the war years these are some of the things that happened to the Bureau 

of Internal Revenue and its operations: 

Within a few years the Bureau grew from a $5 billion to more than 

a $40 billion business. Its collection job was multiplied eight times 

in dollar volume from 1940 to 1946. 

Its customers quadrupled, from nearly 20 million to more than 

80 million, in tax returns filed during the same period. 

Its work force, however, expanded only two and a half times, from 

22,000 to near its present 57,000 level. 

These magnified tasks had to be met with a prewar machinery that 

was neither designed nor equipped to handle them. They were 
86 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

aggravated by many new and complex taxes imposed and superimposed during the war—excise taxes (taxes on things), income taxes, 

victory taxes, excess profits taxes,—and by major changes in the 

methods of tax collecting, notably the withholding tax. While in the 

long run adding greatly to convenience and effectiveness of taxpaying 

and tax collection, this new pay-as-you-go tax system called for basic 

changes in tax collection administration that had to be made in the 

midstream of war. 

Fundamentally the collection job was transformed into that of 

collecting a broad-based mass tax. The former job was concerned with 

taxpayers with fairly substantial incomes who generally kept records, 

utilized the services of accountants, maintained bank accounts, and 

possessed a general knowledge of tax requirements. Practically overnight this tax was extended to the millions of modest income people 

whose records were scanty, who were untrained in tax requirements, 

often had no bank accounts and changed jobs frequently. New and 

difficult problems were thus forced upon the people of the Bureau. 

The Bureau's difficulties during the war years were further increased by the severe shortage of manpower and mechanical equipment and the necessity for rapid training of new personnel when it 

could get them. 

The Bureau met these tasks as many another emergency had to be 

met in those times. It pinpointed its limited facilities, putting them 

to work in areas where enforcement was needed most. The increasing 

tax revenues were kept flowing to help pay the cost of the Nation's 

successful fight to defend itself and the world against conquest and 

enslavement. 

But the Bureau emerged from the war much the worse for wear, 

and with a still gigantic job ahead of it. 

Individual tax returns were being received twice as fast as they 

could be handled. 

The backlog of individual returns continually mounted. 

The investigation of corporate and profits taxes had fallen nearly 

2 years behind. 

It was taking 12 months or more to make refunds to taxpayers who 

had overpaid their taxes, particularly through the withholding tax. 

Furthermore, as taxes increased, the temptation among many taxpayers to avoid and evade these higher taxes and the danger of fraud 

also increased. Wartime tax evasion by black market operators added 

another difficult area of enforcement. On this front, the Bureau could 

spare only limited manpower from its most essential functions to 

obtain better enforcement and collection. The best that could be done 

with the limited manpower was to spot those most troublesome areas 

and concentrate upon them. 

War's end brought some initial relief by increasing the availability 

of manpower as servicemen were demobilized. Personnel was added 

particularly to expand enforcement activities to collect more of the 

taxes due by ferreting out evasion and prosecuting fraud. 

But a great deal more than added personnel was needed. A 

thorough, drastic, and far-reaching revision of the whole tax-collecting 

mechanism was essential to catch up with the past and to keep up 

with the future of a world-power economy, with its expanding populaEXHIBITS 87 

tion and production and with a large part of the huge war bill still to 

be paid. 

SIX YEARS OF RECONVERSION AND MODERNIZATION 

While the war was on, neither time nor manpower permitted the 

large-scale overhauling that was • needed in the organization and 

methods of the Bureau of Internal Revenue to meet its multiplied 

responsibilities. 

With the war-strains over but with the postwar strains still ahead, 

the new Secretary of the Treasury, John W. Snyder, launched a concerted program to overhaul, streamline, and modernize the whole 

tax collection system. 

The program was started in October 1946, when Secretary Snyder 

called to Washington all the key revenue officials to plan and initiate 

this transformation of a near-century-old organization. 

The October meeting was the first of a continuing series of moves 

and actions through the ensuing months and years that began to take 

form in major changes and innumerable lesser improvements in the 

Bureau's methods and administration. 

Officially this was labeled the "Management Improvement Program." 

In every day terms, it meant cutting red tape, speeding up operations, 

cutting down overhead, streamlining administration, replacing obsolete methods with modern ones, getting more done with the same manpower and money, making both taxpaying and tax collecting simpler. 

It was not just an overnight job. The unremitting job of catching 

up and keeping up with the heavy workload of tax collections had to 

go on, as incomes and the volume of returns increased The plant 

could not be closed down for repairs, or for new models, or for retooling 

and replanning the assembly lines. 

Furthermore, much of what had to be done was trail-blazing. History and experience just didn't provide any precedents or foreknowledge 

on the best ways to collect $65 billion from some 90-odd million taxpayers. Consequently, many major changes were first tried out on a 

"pilot" basis. After sufficient experience and adjustment, they were 

extended to general use if they worked, discarded if they didn't 

A SUMMARY OF RESULTS 

Here, in broad terms, is what the Bureau of Internal Revenue 

accomplished under this 6-year program of efficiency, economy, and 

modernization: 

Measured up to its new $65 billion responsibilities. 

Caught up with the war backlog. 

Assumed new duties, such as the wagering tax, new social security 

taxes, and launched an all-out drive on racketeer tax evaders. 

Handled more work at less cost * * *. 

And thereby expanded enforcement efforts with a resulting increase, 

for a single year, of $800 million in unreported and unpaid taxes—

about three times the entire annual cost of operating the Bureau. 

A more detailed accounting of the program's results is given later 

in this section. 

The Bureau has not as yet, however, been able fully to realize all 

its goals, including more complete audit and examination of income 

tax returns which, if manpower permitted, would produce substantial 

amounts of additional revenue. 
88 REPORT OF COMMISSIONER OF INTERNAL REVENUE EXHIBITS 89 

STRATEGY OF THE IMPROVEMENT PROGRAM 

Bringing experience and management skill from every source, inside 

and outside the Government, from the lowest level field worker to the 

most skilled management experts in the country, to bear on the updating of the Bureau's organization and operations—this was the 

strategy of the campaign to solve the war-born problem of increased 

tax collection. 

The grass roots had to be tapped, the Secretary felt, to make the 

program really effective and to reach the people in the field down to the 

last of the clerks who handle the multitudinous tasks connected with 

notices, returns, queries of millions of taxpayers. 

A work simplification program was initiated at the grass roots level 

to provide training and instruction down to the lowest supervisory 

level in simplifying and organizing work operations efficiently. Some 

2,200 improvements in operations and procedures resulted. 

Employee incentive awards were established, with cash awards 

offered to employees at all levels who produced ideas or suggestions 

that paid off. 

At the top levels, major changes were shaped, on the basis of 

recommendations of the Bureau's key officials, and as a result of toplevel studies. 

A special committee on administration was set up by the Revenue 

Commissioner, and later, at the Secretary's direction, a management 

staff was established as part of the Commissioner's office. 

A management committee was also established by the Secretary in 

the Treasury Department to serve as a consulting group for improved 

management throughout the Department, including the Bureau of 

Internal Revenue. Later the Secretary created a Special Committee 

to Direct the Management Studies of the Bureau of Internal Revenue, 

composed of well qualified people from both inside and outside the 

Government, and headed by an experienced business man and former 

Under Secretary of the Treasury, A. L. M. Wiggins. 

The Congress also took an active interest in the improvement of 

the Bureau's operations. The House Committee on Appropriations 

made a number of recommendations, and the Advisory Group to the 

Joint Committee on Internal Revenue Taxation also submitted a 

series of recommendations. Virtually all of these recommendations 

were adopted. 

One of the outstanding management firms in the country, Cresap, 

McCormick, and Paget, was engaged in September 1948, to make a 

comprehensive analysis of organization and procedures in the collectors' offices with recommendations for improvement. When this 

study was completed, the firm was engaged to do a similar study on 

the organization of the Bureau itself. 

WHAT THE PROGRAM DID 

To give a better idea of what this meant, here are some of the things 

that were done: 

Aiding the taxpayer.—Much of what goes on in the collection of 

taxes is of no direct concern to the taxpayer—unless it goes wrong. 

But some of it does affect him directly and the taxpayer plays an important part in making tax collecting more efficient and less costly. 

The easier it is for the taxpayer to file, the easier becomes the job of 

the tax office. 

When the taxpayer makes an error, it means work and expense in 

the tax office, as well as added work and possible inconvenience and 

annoyance to the taxpayer. 

Most taxpayers today, when they think back, know how greatly the 

standard tax forms have been simplified. For most wage earners, the 

income tax return can now be made out in a few minutes. 

Four out of five taxpayers who use the long form, 1040, take the 

standard deduction rather than attempting to itemize all the possible 

deductible items, from depreciation on a rented room to interest on the 

mortgage. That saves his time and it saves the collector's time and 

the Government's money. Most of these forms are now checked and 

verified electronically. 

From 15 to 20 million taxpayers with earnings of less than $5,000 

merely fill in certain data on Form 1040A, send it in with the withholding form provided by the employer, and the tax office computes 

the tax. This is done by remarkable electronic machines that can 

compute a return in 1/70th of a second. If the taxpayer has overpaid 

his tax, he receives a refund; if he has underpaid, he is billed for the 

balance. 

Some other aids with which the taxpayer is now familiar and which 

he accepts as a normal service are these: 

The simple and understandable instructions he now receives with 

his tax notice, telling him not only what income is taxable but also 

what he doesn't have to pay on. 

The booklet, "Your Federal Income Tax," one of the Government's 

most widely read documents, giving a comprehensive account of income tax matters in man-in-the-street language and sold through the 

Superintendent of Documents for 25 cents. 

The punch-card notices the taxpayer now receives that enable the 

tax offices to handle notices and payments mechanically. 

All of these developments are outgrowths of the efforts and ideas 

to simplify and modernize tax collections. The results are better 

service to the taxpayer and more efficient and economical performance 

by the tax collector. 

Modernized methods.—To anyone who would go through a large tax 

collection office today and compare it with several years ago, probably 

the most striking visible change would be in the modern devices and 

equipment that have replaced much of the hand-handling of the past. 

Thischange, though well advanced, is still going on. 

When the war expansion in revenue workload came, it was obvious 

that mechanization was the answer to many workload problems. 

But that couldn't be achieved during the war. 

One of the primary objectives of the management improvement 

program has been to convert manual operations to labor-saving and 

mechanical methods as rapidly and as extensively as was feasible. 

Today much of that progress has been achieved through the electronic 

and mechanical marvels of the modern business world. 

Electronic computers, punch-card recording machines, electric typewriters, high-speed posting machines, mechanical validators for tax 

stamps, devices in distilleries that automatically measure the volume 

of alcoholic beverages and record the tax—all of these and others have 
90 REPORT OF COMMISSIONER OF INTERNAL REVENUE EXHIBITS 91 

been developed, tried out, and installed as rapidly as possible to multiply the output of the Revenue Bureau's manpower. 

Refunds on overpayments to some 30 million taxpayers as a result 

of the withholding tax, which run annually close to two billion dollars, 

have been speeded up through modern methods to the point where 

most of them are now mailed out in approximately a month after the 

March 15 closing date for tax returns. During the war, when the 

withholding tax was initiated, as much as 12 months was required for 

refunds. This speed-up of refunds is not only a welcome service to 

the taxpayer who usually wants to recover his excess payments as 

soon as possible, but it also represents a significant savings to the 

government in interest payments that would otherwise have to be 

made on these sums. 

Such interest payments have been cut by $3 million in a single year 

through the speed-up of these refunds. 

A standardized mailing system has been instituted in tax offices to 

effect a $500,000 savings annually. 

A new flat-package mailing system for income tax forms has been 

tried out successfully and will be instituted generally at a savings of 

$350,000 per year. 

Space-saving has been another economy goal. One of the first steps 

taken was to convert the voluminous files and records of the revenue 

establishment to microfilm, saving acres of file cabinets and storage 

space. Initial savings ran to more than a million dollars, and an 

estimated $100,000 annually is being saved through microfilming as 

new files and records must be added. 

Red tape cutting.—Simplifying administrative procedures, reducing 

the volume of forms, reports, and copies, is a continuous necessity in 

any large organization to streamline operations and save waste motion 

and manpower. During the past 6 years such red tape cutting has 

been a major point of attack in improving the Bureau's operations. 

Some examples: 

A detailed review was made of relationships between the field oflices 

and Washington. Where some centralization was desirable in making 

effective use of modern mechanized and mass servicing operations, 

decentralization of functions increased efficiency and economy in 

matters that could otherwise be adequately handled at the field level. 

The flow of reports, forms, copies, and actions that came in from 

the field to Washington was examined to determine if "this trip is 

necessary." For many things, it was and is necessary. For many it 

was found to serve no useful purpose. Routine actions and functions 

were left with the field offices, and many lesser decisions and determinations delegated to them. 

The result was to speed up operations and to cut down greatly the 

volume of reports, copies, duplicate reviews and approvals, and file 

records. 

Combining reports for withholding tax, and social security tax on 

a single form saved $250,000 a year. 

Consolidating administrative operations has been another important means of increasing efficiency and reducing the number of forms 

and reports and the overhead. 

The administration of alcoholic beverage and of tobacco taxes has 

been consolidated into a single unit, permitting better enforcement 

coverage of the alcohol and tobacco industries. 

Since the same field agents handle and investigate both income and 

estate and gift taxes, the administration of estate and gift taxes was 

combined with the income tax administration, permitting consolidation of reports and instructions. 

Modern cost accounting systems were set up in the collector's office 

to make it possible to relate staff size more accurately to the actual 

work requirements. 

Top-side administration was also tightened by consolidating all 

operating functions into one group and all technical functions into i 

another group, with each group reporting to a single Assistant Commissioner. 

A separate Inspection Service was established reporting directly to 

the Commissioner on the performance and conduct of Bureau offices 

and employees. 

What the employees did.—One of the most significant and useful 

contributions in improving the Bureau's operations was that made by 

the rank-and-file of the employees. On January 14, 1947, the Secretary of the Treasury set up a Department Committee on Employee 

Awards, and invited all employees to send in their ideas and suggestions for improved operations. Cash incentive awards were made to 

employees whose ideas paid off in economies. 

The Commissioner invited employees from all levels of the Internal 

Revenue Service to participate. The service responded. 

They sent in 15,065 recommendations of how the work could be 

done faster, better, and cheaper. Of these, 2,285 were adopted. The 

result was an estimated savings of 1664,000 annually to the Government 

Many of the suggestions appeared trivial on their face—an unneeded 

copy or superfluous form eliminated, or a simpler method of indexing 

some records. But when applied throughout the service, they added 

up. One man who made a suggestion that he felt was hardly worth 

the time and notice of Washington, was amazed to receive a cash 

award of $375 for his proposal. It had been adopted with a resulting 

annual saving to the Government of $37,500. 

The idea involved in this suggestion provided for the discontinuance 

of the stamping or imprinting of the internal revenue collection district 

on withholding receipts, Forms W-2, at the time they are detached 

from the income tax returns. The elimination of this operation saved 

28,040 man-hours which were released for other purposes. 

The highest award paid to date was $725. This suggestion involved 

an improvement in the business schedule of the income tax return, 

Form 1040, relating to "cost of goods withdrawn for personal use." 

In addition to bringing in substantial additional revenue, the change 

has decreased administrative costs through follow-up investigations 

to an extent estimated at approximately $161,500 annually. 

Examples of other suggestions.—Devices helpful to telephone operators in handling calls on frequently requested and often busy numbers; 

elimination of unnecessary markings on tax returns; improved methods 

of standardization, sampling, manufacturing, and testing of various 

types of distilled and fermented beverages; revision of interoffice forms 
92 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

and records to reduce typing; addressographing addresses on cover of 

pamphlets to avoid use of envelopes; methods for speeding up lines 

of waiting taxpayers; and development of a method for the detection 

and estimation of heroin in the presence of other alkaloids. 

ADDING UP THE BENEFITS 

Some of the money savings resulting from specific measures have 

already been mentioned. But they are merely examples of the full 

benefits that are disclosed in some of the over-all results of the Bureau's 

operations. 

Here are some of the results: 

With only a 3 percent increase in personnel over the 6 years, the 

Bureau of Internal Revenue has absorbed a 13 percent increase in 

income tax returns, a 144 percent increase in those over $10,000—

those requiring more work and individual attention—and a 61 percent 

increase in corporate income tax returns, as well as catching up on the 

wartime backlog. Expanding population, increased earnings, and 

business expansion have continued to add to the Bureau's workload 

during the postwar period. 

But that is not all. 

Additional tax assessments and collections on unpaid taxes—money 

the Government would not otherwise have collected—were nearly 

$800,000,000, or 55 percent, greater in 1952 than in 1946. 

This resulted from diverting more manpower from the processing of 

tax returns, which must be done but produces no additional revenue, 

to the examining and investigating of tax returns which failed to 

report the full taxes owing to the Government. For every dollar 

spent in this fieldhe Government has collected on an average an 

additional $20. Manpower savings through streamlining and modern- M 

ization of mass handling of returns has made this increased collection 

effort possible. 

An audit control program was instituted to identify the types of 

programs that held greatest promise of "pay dirt"—those most likely 

to be incorrect or understated—and efforts were concentrated most 

heavily on these returns. Intensive studies have been made to 

analyze the nature and extent of enforcement and management problems in different tax categories in order to focus effort on the most 

productive areas and avoid wasted effort. 

In addition, issuance of warrants to collect taxes reported but not 

paid increased to a total of about $400 million, about twice the amount 

6 years before. 

Investigations and prosecutions of tax frauds were also stepped up 

through the release of more manpower as part of the drive to collect 

more taxes due the Government. In fiscal year 1952 suspected fraud 

cases investigated were increased 20 percent over the previous year, 

criminal prosecutions recommended jumped 105 percent, and convictions and pleas of guilty or nob contendere obtained through the 

Department of Justice were about 75 percent greater. Claims for 

additional taxes and penalties involved in the cases investigated by 

the Bureau special agents totaled more than $250 million. 

The stepped-up activity in fraud investigations resulted in considerable part from increased efforts undertaken at the Secretary of 

- EXHIBITS. 93 

the Treasury's direction to investigate racketeering-type cases, following the Kefauver Committee disclosures. Special racket squads 

involving 2,100 top enforcement officers, were organized under Jobi 

B. Dunlap, who shortly thereafter became Commissioner. Thirtyfour percent of the cases recommended for prosecution in fiscal 1952 

were in the gambler of racketeer category. 

In addition, the Bureau for the first time had the job of initiating 

and enforceing the new wagering tax enacted by the Congress. 

Both the racket squad drive and the wagering tax enforcement, 

however, have impeded other operations. Since no funds were provided by the Congress for either of these activities, they have had to 

be carried on at the expense of other functions. Necessarily, the 

diversion of these forces to these new and special duties removes them 

from the work force available for the regular audit of tax returns and 

limits the recovery through these channels accordingly. 

This is the 6-year story of the efforts of the Treasury Department 

and the Bureau of Internal Revenue to revamp, modernize, and overhaul the Nation's tax collecting system. Seldom has any large 

Government operation undergone so intensive and complete scrutiny 

and change or been so extensively transformed in so short a time. 

The program is not completed even now—indeed, it may never end, 

for improvement measures will have to go on as conditions change. 

The effect and the dividends of the improvements thus far made are 

also only partially realized. Much of the benefit and savings is still 

to come in future years. 

THE BUREAU GETS REORGANIZED 

In view of the changes wrought under the improvement program, 

a "reorganization" of the Bureau of Internal Revenue on top of all 

that was done may seem superfluous. 

Efforts to improve the Bureau's management and operations, however, made evident a need for something more fundamental. 'Punetions could be improved within limits, but some of them could not be 

changed because the Bureau's basic legal structure did not permit it. 

The Bureau had developed over the years on a framework originally 

established during the Civil War, when the first income tax was imposed. (The Supreme Court later ruled the income tax unconstitutional and it was necessary to amend the Constitution before the 

present-day income tax could be levied.) In 1862 the first collector's 

offices were set-up for the purpose of gaining acceptance and cooperation of the taxpayers and forwarding the tax collections to Washington. 

The number of collector's offices increased to 64, with responsibility chiefly for collecting the various types of taxes. Meanwhile, 

the policy, enforcement, and administration of the various major 

types of taxes were carried on by separate units in Washington and 

the field, with the Commissioner as the only common point of administrative control. The revenue operation was handled through some 

200 different offices throughout the country. This made for diverse 

and scattered administrative direction and difficulty for the taxpayer 

who had to deal with different offices on different problems. 

The collectors, moreover, were political appointees, not career civil 

servants, and their tenure was of uncertain duration. 
94 REPORT OF COMMISSIONER- OF -INTERNAL REVENUE 

Modernization and improved management and direction were 

limited by this kind of organizational framework, which no longer 

fitted the times. The business of revenue administration had become a 

complex and special field where merit, training, and experience, protected by secure tenure, were essential. 

Out of the management studies and surveys, a plan was developed 

to reorganize the Bureau along modern lines. These proposals were 

embodied in Reorganization Plan No. 1 for 1952 which President 

Truman sent to the Congress on January 14, 1952. It became effective 2 months later with Congressional assent, and was to be put into 

effect by December 1 of the same year. 

WHAT THE REORGANIZATION PROVIDED 

Here is what the reorganization plan did: 

It eliminated the political appointment of collectors and brought 

all Bureau personnel, except the Commissioner, under Civil Service 

appointment and the merit system. 

It established not more than 25 district offices to be headed by 

a district commissioner. These offices were to have full administrative responsibility for all internal revenue activities within a 

designated area, regardless of function or kind of tax. The district 

commissioner was to report directly to Washington. 

It abolished the collector's offices and in their stead established 

not more than 70 local area offices under the direction and supervision 

of the district offices, with a director of internal revenue in charge 

of each. These are the offices with which the taxpayer will deal on 

virtually all revenue matters, whether it is to pay a tax or to appeal 

a ruling. It is the intention, in time, to have all these functions, 

now physically scattered, brought together under one roof. 

The Act provided for three Assistant Commissioners in Washington, 

one for operations, one for technical rulings and decisions, one for the 

Inspection Service. 

WHAT THE REORGANIZATION ACCOMPLISHED 

Here are some of the things that this reorganization will mean in 

terms of improved service to the public and the taxpayer: 

It will provide a one-stop service for the taxpayer to take up any 

revenue matter without leaving his state. 

It will make possible the development of a strong corps of trained 

and experiened tax administrators available to serve where they are 

needed, by making them all a part of the career service, by giving them 

continuity of tenure on the basis of their merits, and by permitting 

key officials to be moved from one area to another as needed, whereas 

in the past collectors were required to be residents of the areas they 

served. 

It will streamline administration and make for tighter control 

and more efficient direction by providing for the directors' field offices 

to be supervised by the district commissioners' offices, which in turn 

will report directly to Washington 

It will permit the extension of many improvements by permitting 

consolidation of more mass operations in the district offices, the 

delegation of more operating functions to the taxpayer level, and 

the extension of modern mechanized operations which could not 

EXHIBITS 95 

previously be economically applied in offices serving less populated 

areas and having smaller workloads. 

The Act also maintains the recently created Inspection Service, 

through which the Commissioner and the Secretary of the Treasury 

will have a direct line of supervision and information on the performance of offices and the conduct of personnel independent of 

administrative and operating channels, and will be better able to 

maintain high standards of service and behavior throughout the 

country. 

Full development of the benefits of the new organization will require 

time, but the fundamental steps have now been taken. 

THE INTERNAL REVENUE SERVICE 

Without the steady flow of revenue from the people, Government 

would cease to function. A strain on the revenue system is in effect 

a strain on the heart of Government. A breakdown in its functions 

affects all functions. 

That is why extraordinary measures were called for and taken to 

regenerate the Bureau's operations after the strains of war. That, 

too, is why unusual and special safeguards have been instituted to 

assure among revenue service personnel a high level of competence, 

complete integrity, and freedom from personal interests that may 

conflict with public responsibility. 

Better supervision, closer surveillance, and improved training of 

personnel were among the needs brought out by the program to 

improve the Bureau's service and to repair the effects of the strains 

of war. For these strains had had their effect on the people as well 

as on the operations. 

A PROGRAM TO IMPROVE PERSONNEL 

Here are measures that have been taken to root out failures in the 

service and insure and safeguard high standard performance and 

conduct in the future: 

Long-standing policies of the Bureau have called for thorough 

character checks and statements on financial worth and interests by 

persons appointed to positions of trust; the bonding of all employees 

handling public funds; investigation of any reports of improper 

activities by employees; and a periodic check of office operations. 

These measures have been augmented and strengthened by other 

actions designed to eliminate any who are unworthy and to assure 

that only persons of integrity and competence are admitted to and 

retained in the service. 

Some 32,000 internal revenue employees holding positions of trust 

are now required periodically to fill out detailed financial questionnaires, and to disclose any outside interests that might bear on their 

Bureau employment. 

Income tax returns of all enforcement and other key personnel in 

the service have been audited as a check on their sources of outside 

income. 

The Inspection Service has been established as a separate division 

to investigate and check on the performance and conduct of employees, 

and to keep the Commissioner and the Secretary of the Treasury 
96 REPORT OF COMMISSIONER OF INTERNAL REVENUE EXHIBITS 97 

apprised of personnel activities and problems at all levels independently of operating and administrative channels. 

At the request of Internal Revenue Commissioner John B. Dunlap, 

the Civil Service Commission has set higher minimum standards for 

appointment of enforcement officers. 

An improved training program for Bureau personnel has been set 

up. 

The Secretary of the Treasury and the Commissioner of Internal 

Revenue have amplified and reemphasized basic rules laid down for 

the conduct of employees. They include prohibition against accepting gifts, fees, or favors from taxpayers or attorneys involved in 

matters before the Bureau; and avoidance of outside activities or 

interests that niay be in conflict with their employment by the Bureau 

or the Federal Government. 

The elimination of political appointments and the coverage of all 

employees and staff under the merit system have further strengthened 

these procedures and the control and direction of employees' 

performance and conduct. 

THE WAYWARD ELIMINATED 

These measures to protect the full integrity of the Internal Revenue 

Service were strengthened when it was discovered that some employees 

had failed in their public responsibilities. Separations for cause in 

fiscal year 1952 resulting from investigations instituted over a much 

longer period are given in the following table: 

NUMBER OF SEPARATIONS DURING THE FISCAL YEAR 1952 

Cause of separation 

Acceptance of gratuities, bribes, etc 

Embezzlement involving United States Government funds or property 

Failure of employee to pay proper tax 

Falsification or distortion of Government reports, records, etc 

103 

In addition to the above separations, 71 employees in 1952 were 

separated for miscellaneous reasons involving such matters as personal 

misconduct, failure to properly discharge duties, infractions of the 

rules and regulations, etc. (Total number of employees in the 

Bureau of Internal Revenue July 1, 1951: 57,557.) 

When the first irregularities began to be uncovered, considerably 

before they were brought to Congressional and public attention, 

Secretary of the Treasury Snyder personally instructed the Commissioner of Internal Revenue to get to the bottom of every evidence 

or report of misconduct. Full investigations were ordered in all 

instances of alleged wrongdoing, and a sweeping review of personnel 

was instituted by the Commissioner with the Secretary's full support. 

Investigation showed that the great body of workers in the Revenue 

Service had shouldered the added burdens ably and without deviation 

from sound principles of public service. They had responded vigorously to their leadership to increase their output, improve their 

efficiency, and adjust to new methods and demands. 

This was not true of all. Some were unequal to handling their 

greater tasks and responsibilities. Others succumbed to temptations 

for personal gain. More vigorous measures to stamp out and prevent 

wrongdoing were added to the task of reconstructing the Bureau's 

operating machinery, while the job of collecting the Nation's taxes 

went on without interruption. 

The situation was summed up by Commissioner John B. Dunlap 

in these words: 

While our main attention was focused on solutions of our management problems brought on by the vast wartime increase in our tax system, some of the men 

charged with the responsibility for proper administration of our Internal Revenue 

Service proved too little or too weak for their heavy public trust. 

With few exceptions, those who proved too little or too weak were 

discovered and investigated by the Bureau itself, and action was 

taken, ranging from dismissal to criminal prosecution, as soon as the 

facts could be established. 

Congressional committees, particularly the King Subcommittee of 

the House Committee on Ways and Means, also undertook investigation under their special powers, with the full cooperation of the 

Bureau and the Secretary of the Treasury. Every personnel file of 

the Bureau since 1945 was made available to the Committee along 

with the cooperation of the Bureau's agents. Referring to the 

Bureau's assistance, Chairman King of the House Subcommittee 

said: • 

One of the most satisfactory experiences I have had in the course of our work 

has been to have the cooperative and able assistance of Special Agents and Revenue Agents. Some of the Committee's most difficult investigations could not 

have been carried out as successfully as they were without the persevering and 

skilled help we received. 

Weeding out wrongdoers was only half the job. Strengthening the 

controls, supervision, and training of personnel to protect against 

future laxness and assure high performance standards was equally 

essential. Additional measures were instituted to maintain in all 

offices and personnel the honesty and integrity that generally characterizes the Bureau's employees. Full integrity in the Service has to go 

along with modern efficiency. 

STEPS TO HIGHER STANDARDS 

In brief, this is the story of what the Bureau and the Department 

of the Treasury have done to bring the quality of the Revenue Service 

personnel to the same high standards that have been set for the 

efficiency of its operations: 

1. Thorough investigation has eliminated those shown to be 

unequal to present-day tasks or unworthy of public trust and has 

firmly established the integrity of the great body of Revenue Service 

employees. 

2. Action has been successfully taken to recover or prevent any 

known financial loss to the Government resulting from wrongdoing in 

the Service. The taxpayer's dollar has been thoroughly protected. 

3. Political appointments have been eliminated, and all personnel 

below the Commissioner have been brought under the merit system. 

4. Through reorganization and special safeguards, closer supervision and direct control of performance and conduct have been 

Number of 

separations 

July I. HMI—

June &I, lose 

53 

24 

21 

5 
98 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

instituted, and training systems have been undertaken to better 

equip revenue workers to fulfill their duties and obligations as public 

servants. 

WHAT LIES AHEAD 

The proper functioning of any organization, public or private, 

depends fundamentally on the quality and effort of the people who 

man it and, particularly in a large operation, the opportunity given 

these people, through effective organization, methods, and administrative direction and supervision, to apply their efforts successfully to 

their functions. 

The 6-year effort of the Department of the Treasury and the 

Bureau of Internal Revenue has been directed toward developing the 

type of organization and machinery that will most efficiently meet the 

newly enlarged and complex responsibilities of collecting the Nation's 

taxes and toward assuring a service of competent workers and leaders 

to carry out these responsibilities. 

The Bureau's ability to do the full job, however, by increasing its 

examining and enforcement activities so that all taxpayers are assessed 

the full taxes they legally owe the Government and no taxpayer is 

overcharged on his tax bill, still depends on sufficient personnel to 

expand these operations. Even with the high level of efficiency 

achieved, enforcement staff has not yet equalled the full measure of 

needed enforcement work. Adequate funds for this purpose remain a 

necessity for a fully adequate tax collecting job. 

The management improvement program and the Reorganization 

Plan have, nevertheless, largely accomplished the administrative and 

operating changes that were necessary. The personnel was for the 

most part already available, but its effectiveness and quality has been 

strengthened both by the administrative improvements and by the 

protections and assurances that have been provided for quality 

service and performance. These have included the full establishment 

of career service, based on the merit system and the reward and 

promotion of those who earn it, the elimination of wrongdoers in high 

or low places, greater safeguards against failures in public responsibility, and the enlistment of the efforts of the whole body of workers 

in the continued improvement and maintenance of the tax collecting 

operation. 

Much of this accomplishment is in effect and producing results, 

while some of it promises its major returns in future years. The 

Bureau of Internal Revenue is, however, already a rejuvenated and 

strong organization, and the imperfections that resulted from the 

strains of wartime expansion have either been remedied or are being 

progressively overcome. 

Commissioner John B. Dunlap, himself a career revenue employee, 

who helped fashion the reorganization plan and is now putting it into 

effect, and who carried out the final clean-up of wrongdoers after his 

appointment in 1951, has this to say of his confidence in the Bureau's 

future: 

I believe that the vast majority of our people are just as fully devoted to their 

duty as any employees you could find in any business. It's a shame that those 

who have gone wrong have blackened the reputation of those who are trying to 

do an excellent job. 

I feel that the Internal Revenue Bureau is in a healthy condition. I will never 

lose faith in the people in the Internal Revenue Service. 

EXHIBITS 99 

Secretary of the Treasury, John W. Snyder, when he launched the 

improvement program of the Bureau 3 months after he took office in 

1946, had told its officials at that time: 

You are urged to make a continuous effort to simplify procedures, streamline 

operations, obtain a higher degree of efficiency, improve the effective utilization 

of personnel, and to eliminate work and expenditures which are not essential to 

good administrative practice and sound fiscal policy. 

In August 1952, with the establishment of the new headquarters 

organization in Washington under the reorganization plan, Secretary 

Snyder was able to say: 

This plan marks the culmination of long and earnest efforts to remold the 

Revenue Service into a modernized agency, better able to discharge its tremendous 

task of administering the revenue system of our country * * * As the 

changes in the Bureau's operating machinery are implemented, we are assured of 

increased efficiency, high integrity, and equitable, impartial administration of the 

internal revenue statutes * * * I know every employee of the Bureau from 

top to bottom will respond wholeheartedly and that with the completion of the 

reorganization and the revitalizing of the Revenue Service, we will have the 

soundest revenue-collecting agency in history, manned by capable and trustworthy men and women 

The American people are entitled to a Federal Revenue Service of top efficiency, 

of unquestioned integrity, and of maximum operating economy. We are confident 

that today the Bureau is providing this type of service. 

CHRONOLOGY OF ACTIONS TAKEN TO IMPROVE ADMINISTRATION IN THE BUREAU 

OF INTERNAL REVENUE 

October 7-9, 1946.—Conference of collectors and internal revenue 

agents in Washington The conference, called by the Secretary, 

stirred interest in better management in the Bureau of Internal 

Revenue and resulted in the submission of a number of plans for 

improving the operations of the Internal Revenue Service. Many of 

these ideas and suggestions were adopted in 1947 and 1948 after 

study and experiments showed they were worth while. 

October 31, 1946.—The Secretary addressed a letter to all Bureau 

chiefs urging the streamlining of operations and other administrative 

improvements. 

November 15, 1946.—Special Committee on Administration in 

Bureau of Internal Revenue appointed. This committee appraised 

the ideas and suggestions submitted by key officials at the October 

conference and immediately afterward. Its final report was submitted 

in August 1947. Over 100 of the ideas or plans were adopted and 

placed in effect in the past 5 years. Some of these were: (a) microfilming of records, commencing in 1947; (b) revision of internal forms, 

from 1946 to date; (c) new sorting and filing methods for processing 

returns; (d) reduction of interest payments through improved procedures in scheduling refunds; (e) change in tolerance used in computing taxes on Form W-2, to simplify adjustments between the taxpayer 

and the Government; (f) use of pre-assembled forms where practicable to increase productivity and improve service. 

Other projects begun in 1947 which resulted in improvements in 

operations included: 

The microfilming program, to preserve permanent records but save 

space and equipment required for records storage. This is now one 

of the standard practices of the Bureau of Internal Revenue and over 

$100,000 per year which would otherwise be required for file cabinets 

229047-58-8 
100 REPORT OF COMMISSIONER OF INTERNAL REVENUE EXHIBITS 101 

and storage space is now saved. The value of file cabinets and floor 

space released by this program to date is over $1,300,000. 

Improvements were worked out in the scheduling of payments for 

refund accelerating the process sufficiently to save over $3,000,000 

in interest charges during one year by getting refunds to taxpayers 

more promptly. 

The procedure for paying alcohol taxes by bottlers was simplified. 

Instead of the proprietor having to submit bottling tank forms to the 

storekeeper-gauger for verification, then to a deputy collector with the 

remittance, then the receipted form back to the storekeeper-gauger for 

release of the spirits for bottling, the new procedure eliminates all of 

the delay. The proprietor may now purchase stamps in advance, 

attach the exact value to the bottling tank form, and present the form 

with attached stamps to the storekeeper-gauger who releases the spirits 

to be bottled. 

The use of transfer stamps on all containers of industrial alcohol 

transferred in bond from one bonded warehouse to another was eliminated as investigation revealed there was sufficient protection to the 

revenue without them. 

February 1948.—Report by the House Committee on Appropriations. This committee report made a number of recommendations 

for improving the operations of the Bureau of Internal Revenue. 

February 20, 1948.—The Secretary instructed the Commissioner to 

augment the Commissioner's staff to have the function of broad-scale 

management. 

January 14, 1947.—Letter to Bureau heads announced the appointment of a Treasury Department Committee on Employee Awards. 

The committee was organized in January and began planning fora 

program. The regulations and instructions were issued in June and 

the formal announcement to employees inviting them to participate 

by submitting suggestions was made on July 30. Since that time 

Bureau of Internal Revenue employees have submitted over 14,500 

suggestions. Of these, 2,170 have been adopted and 1,876 cash 

awards made. Estimated first-year's savings total $663,900. This 

is still a very vital and active program, 24 suggestions were adopted 

last month. Most of these improvements are small, an improvement 

in a form, or the elimination of an unnecessary step in a procedure, 

but when an organization is handling forms by the millions, 50,000,000 

income tax returns and 40,000,000 other tax returns per year, these 

small savings in time and work are enormously multiplied in some 

cases. 

March 25, 1947.—Letter to Bureau heads urging again their 

accelerated efforts toward improvements to reduce expenditures. 

June 1947.—Inauguration of work simplification program The 

program was begun with a "pilot" installation in the collector's office 

in St. Paul, Minn. The program might be called the grass-roots 

approach to management improvement, as it starts with the lowest 

level of management, the first-line supervisor, and trains him to 

apply simple techniques of management analysis. Within 5 years it 

has resulted in the installation of more than 2,200 improvements, and 

an active interest in better management-among the lowest supervisory 

levels of the internal revenue service. 

November 1, 1947.—Wage and Excise Tax Division was formed in 

collectors' offices by combining the Miscellaneous and Employment 

Tax Divisions and the Witholding Tax Subdivision of the Income 

Tax Division. This permitted the consolidation of certain forms and 

records and the performance of a better coordinated service to taxpayers. 

March 23, 1948.—Organizationa1 meeting of the Treasury Department Management Committee was held. This committee was established to act as a consulting organization for improving management 

throughout the Department. 

April 22, 1948.—The Commissioner's management staff was established'by the Commissioner's order. The management staff has as a 

primary objective the improvement of management in the Bureau of 

Internal Revenue. It has taken a position of leadership in management activities since that time. 

April 1948.—Report of the Advisory Group to the Joint Committee on Internal Revenue Taxation was released. This report 

made a number of recommendations, among them: 

(a) The establishment of a management staff in the Commissioner's 

office. 

(b) The decentralization of all routine work to the field offices 

leaving Washington a supervisory and management headquarters. 

(c) The extension of the use of depositary receipts. 

(d) Improvements in tax return forms. 

(e) The use of modern sampling techniques to measure the adequacy 

of enforcement methods and the volume of tax evasion. 

(f) The employment of outside management specialists to study 

the organization and operations of the Bureau of Internal Revenue. 

All of these recommendations were accepted and became objectives, 

for installation as rapidly as possible. 

July 2, 1948.—By Order No. 5-784, the Secretary established a 

Committee to Direct the Management Studies of the Bureau of 

Internal Revenue. Hon. A. L. M. Wiggins was named chairman. 

This committee brought together a group of highly qualified men, 

from both inside and outside of Government, and focused their attention on the management problems of the Bureau of Internal Revenue 

for purposes of discussion and analysis. It has been most helpful in 

its advice to the Commissioner of Internal Revenue and in expediting 

improvements. 

September 1948.—Congress authorized the employment of a firm of 

management consultants to make a comprehensive survey in the 

Bureau of Internal Revenue. 

September 30, 1948.—The services of Cresap, McCormick and Paget 

were obtained to analyze the organization and procedures of the 

collector's offices. Their recommendations were received in 1949. 

There were also numerous other developments during 1948 which 

improved the organization and operations of the Bureau of Internal 

Revenue, such as— 

Successful experiments were conducted in the collector's office in 

Cleveland on the use of punch-card tabulating equipment for computing tax liability on W-2 returns. 

Orders were issued for the retention of excise tax returns in the 

collector's offices instead of being forwarded to Washington. This 

eliminated a duplicate copy which had been retained in the collector's 
102 REPORT OF COMMISSIONER OF INTERNAL RENENUE EXHIBITS 103 

it 

office, and, also, the handling of original returns in the Washington 

office. 

Photocopying was introduced in many offices to reduce the typing 

workload and relieve the shortage of typists and stenographers. 

Your Federal Income Tax booklet was rewritten in nontechnical 

language and became a best seller. 

The instructions to taxpayers enclosed with their income-tax return 

forms were clarified so the taxpayer would know not only what he 

should report but what he had a legal right to omit or deduct. 

The new Form 1040A was introduced to simplify computation of tax 

liability by collectors and insure better compliance with income-tax 

law requirements. 

Authority to approve routine personnel actions was decentralized to 

field officials. 

Authority was decentralized to the collectors to approve special 

refunds of social security taxes. 

Estate and Gift Tax Division transferred from Miscellaneous Tax 

Unit to Income Tax Unit, providing closer linking of field and head 

quarters' offices as all field examinations of estate and gift tax returns 

were performed in the field by revenue agents. 

The surveying, classifying, and storing of 2,500,000 individual 

income tax returns, previously performed in Washington, was transferred to the field. 

January 29, 1949.—Final report of management consulting firm on 

study of collectors' offices received. It was a comprehensive and 

detailed document with many plans and recommendations for improvement in the organization and operations of the Bureau of Internal 

Revenue. 

February 1949.—The same firm, Cresap, McCormick and Paget, was 

engaged to study the organization of the Bureau of Internal Revenue 

(previous study was on collectors' offices). 

Spring 1949.—Punch-card tabulating equipment was extended to 

seven additional collection districts from original installation in Cleveland. In 1948, equipment had been used only for 1040A income-tax 

returns, and in 1949, the experiments were extended to 1040 incometax returns, 1040 ES returns and related documents. 

Summer 1949.—Tests were made as recommended in report of the 

management consulting firm. 

1. Use of electric typewriters, continuous forms, dual roller platens, 

as posting machines for processing individual income tax returns. 

2. Discontinuing of separate accounts to record: (a) collection of 

accrued penalties and interest; (b) collections obtained after abatement of assessments as uncollectible; (c) excess collection of income 

and withholding taxes. 

3. Use of new and simplified scheme for block numbering of returns 

to reduce typing and proofreading. 

4. Use of validating machines and bank-proofing machines for 

processing and control of remittances; also adaptation of cash-register 

machines to validate special tax stamps. 

5. Simplified procedure for control and disposition of unclassified 

collections. 

6. Use of high-speed posting machines with direct subtraction 

using continuous carbon-interleaved forms for preparing accounting 

records. 

August 1949.—Report of management consulting firm Cresap, 

McCormick and Paget, on organization of the Bureau of Internal 

Revenue was received. It included a number of recommendations 

for organizational and procedural changes. 

November 14, 1949.—Division of responsibilities between two 

assistant commissioners. The Commissioner of Internal Revenue 

issued an order defining the authority and responsibility of the two 

Assistant Commissioners. One was given supervision over the 

technical functions of the Bureau of Internal Revenue and the other 

was given supervision over the operating activities of the Bureau. 

This provided a logical division of the organization responsibilities 

and provided more adequate assistance to the Commissioner. 

Fall 1949.—The Processing Division was given the task of inserting 

and mailing income tax forms and instructions for several collectors' 

offices. By the fall of 1951 this was extended to 37 collectors' offices. 

Economies were achieved with mass-production methods impossible 

with the job being done in 64 collectors' offices where skilled taxcollecting personnel were directed to this nontechnical task. 

December 16, 1949.—Collectors were delegated authority to make 

refunds under $10,000. This results in collectors processing about 

100,000 overassessments per year instead of their being sent into the 

Washington office for review and scheduling. 

Many other management improvements were made in 1949. 

Some of the more important ones are: 

The audit control program was placed in operation. This involved 

the Ample selection of individual income tax returns for field investigation to determine the compliance of taxpayers and the direction of 

investigative efforts to the best advantage. 

New procedures were adopted for processing information documents. These were directed at accelerating the processing, saving 

time and obtaining better utilization of the documents in auditing 

returns. 

Post audit review work was redesigned to cover the results of audit 

of individual income tax returns by collectors and to stress uniformity 

in field application of the tax laws and regulations. 

Collectors were delegated full authority to assert delinquency 

penalties for late filing of all types of returns. 

Collectors were delegated responsibility for the handling of all 

requests for certified copies of individual income tax returns, and also 

for the transcript service for the States in respect to such returns. 

January 1, 1950.—Federal Insurance Contributions Act and income 

tax withheld combined in one form. This saves work for the taxpayer 

and saves Bureau of Internal Revenue about $250,000 per year in costs 

of processing these returns. Also, this permitted extension of the 

depository receipt system to Federal Insurance Contributions Act 

taxes. 

January-Apra—Electronic computers were used with punch-card 

tabulating equipment for calculating tax liability on income tax 

returns. 
104 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Spring 1950.—Agreements were made with 5 States for cooperation 

in the investigation of income tax returns of residents of those States. 

(Wisconsin, North Carolina, Kentucky, Montana, and Colorado.) 

September 1, 1950.—Bulk gauging tanks were installed in internal 

revenue bonded warehouses, which saved considerable time of storekeeper-gaugers. Loss allowance schedule was eliminated in connection 

with remission claims filed by warehousers of distilled spirits. This 

reduces the workload for both Government and taxpayer. Eliminated 

tax payment of distilled spirits prior to bottling in bond and arranged 

for payment when cases are removed from bond. This simplified tax 

payment procedure and eliminated delay in releasing cases from bond. 

Eliminating reporting of wine gallons as well as proof gallons and tax 

gallons. This simplified reporting, and reduced work of storekeepergaugers and audit clerks. Delegated to district supervisors the authority to approve qualified documents for alcohol production plants. 

This reduced departmental workload and costs. 

October 30, 1950.—Discontinued preparation of separate reports of 

concurrent examination of income-tax returns covering 2 years or more, 

which saved costs equivalent to salaries of revenue agents and typists. 

Numerous other improvements were made during the course of the 

year. These included the following: Eliminated certain nonproductive 

arithmetic verification procedures. Numerous minor delegations of 

authority were issued, such as the authority to collectors, acting collectors, and deputy collectors to sign various forms and documents 

for the Commissioner. These delegations simplified procedures and 

expedited action. 

January 1951.—Operational cost system installed in collectors' 

offices Provided data for businesslike cost control in collectors' 

offices. This facilitates operations analysis and makes it possible to 

staff offices on the basis of workload. 

January-April.—New Office of Budget and Finance was created. 

The first three of Bureau of Internal Revenue's regional finance offices 

were established to provide better and more economical fiscal service. 

July 1, 1951.—Uniform stock-control system was adopted to provide 

for better control of stock issues, inventories, and requisitions for replacement. Decentralized stationery procurement was effected to 

simplify procurement of those items. New system of administrative 

control over budget and expenditures was adopted covering obligations 

and expenditures in the offices of those collectors who handle their own 

accounting. New system of appropriation accounting was also placed 

in effect to simplify appropriation expense accounts. 

September 1951.—Report of survey of management improvement 

facilities of the Bureau of Internal Revenue completed by committee 

appointed by the Secretary and the Commissioner. 

October 1951.—Internal Revenue Inspection Service established. 

This will provide effective inspection of field offices for both efficiency 

and integrity. 

November 14, 1951.—Tobacco tax functions transferred from Excise 

Tax Division to new Alcohol and Tobacco Tax Division. This consolidates field inspection and enforcement activities in one staff for 

both kinds of taxes. 

EXHIBITS 105 

November 2, 1951.—The Income Tax Unit was reorganized to 

reduce the number of primary organizational units from 13 to 5 

eliminating 113 positions. 

During the year several other changes to improve the operations of 

the Bureau of Internal Revenue were also made. These included: 

Decentralized to collectors the audit of Form 940, annual return of 

employer of more than eight persons under the Federal Unemployment Tax Act (formerly handled by Employment Tax Division in 

Washington.) This expedited the process by having collectors deal 

directly with the State unemployment compensation agencies. Installed new method of processing monthly returns of manufacturers of 

tobacco products and annual accounts of dealers in leaf tobacco, 

which eliminated clerical work. Allowed revenue agents to authorize 

payment of claims up to $3,000 on prima facie evidence without field 

examination so their efforts could be directed to more productive 

examinations. Installed a procedure for alphabetical prefix in classification and numbering of income tax returns to provide for quick 

identification of the class of return and simplify numbering. 

December 11, 1951.—Procedure in the consideration of criminal 

fraud cases revised by eliminating the health of the taxpayer as a 

basis for refraining from recommending criminal prosecution for tax 

violations. 

January 8, 1952.—Establishment of a more efficient procedure in 

the routing of criminal tax evasion cases by providing for a direct 

referral of such cases from the field by the district penal attorney of 

the Bureau to the Department of Justice. 

January 10, 1952.—Further improvement in the handling of criminal fraud cases by abandonment of the former policy under which 

criminal prosecution was not recommended in cases where taxpayers 

made voluntary disclosures of intentional violation of the internal 

revenue laws prior to the initiation of the investigation by the Bureau. 

January 14, 1952.—The President's Reorganization Plan No. 1 of 

1952, for the Bureau of Internal Revenue submitted to Congress by 

President Truman. 

The reorganization will include a realinement of activities in the 

field and in Washington. The separate field offices engaged in 

different specialized activities, for example, will largely be consolidated. 

It is expected that the new organization will be more efficient and 

provide better service to the taxpayer. 

January 30, 1952.—Ten task forces were established to work out 

details of plans and procedures for the proposed reorganization under 

plan No. I. 

March 14, 1952.—Reorganization Plan No. 1 became effective. 

March.—Use of fiat package for mailing income-tax forms and 

instructions. For the first time a manufactured flat package of 

forms and instructions was used for two States, Indiana and Massachusetts. It will be used in all districts in the future. The experiment was very successful. Higher manufacturing costs were more 

than offset by savings in labor. 

April.—Standard mail-opening methods. The standardized mailroom system installed in all collectors' offices was very successful, 

will save about $500,000 per year. It provides much more rapid and 

efficient handling of mail and remittances with a marked saving in 
106 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

labor. It will be refined and strengthened in all collectors' offices 

during 1952. 

CONCLUSION 

The foregoing chronology of the actions taken and the improvements made in management and operations of the Bureau of Internal 

Revenue clearly sets out the painstaking care that went into the 

complete reorganization of the Bureau, which culminated in the final 

step represented by the President's Reorganization Plan No. 1 of 1952, 

which was adopted by the Congress on March 14, 1952. 

• 

APPENDIX 

STATISTICAL TABLES 

NOTE.—In tables where figures have been rounded to a specified unit, the 

components may not necessarily add to totals. Percentages are calculated on 

unrounded figures. 

107 
RECEIPTS FROM INTERNAL REVENUE TAXES 

TABLES 1-7 
110 

Indiv

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

idual incomeand employment taxes 

Withheld taxes 

.IR 

gp 

,t:t14,TeE-4°' 

a

gggg, 

ileg8c6 

2 1 1g2a 

agel. 

4i,g1-1° 

$4, 671, 661 

55, 724 

142, 025 

33, 538, 851 

2,91 4, 41 8 4, 699, 577 9, 043, 1 65 

1 44 

2, 219, 339 4, 389,429 

107, 41 2 272, 479 

90, 264, 204 

751, 063 773, 093 734, 976 

21, 640, 855 

1 2, 760, 001 

1,

714, 248 

2,

429,747 

47, 9 19, 340 

6, 072, 890 5,577, 671 

34,318, 604 

376, 237 

32, 9 11, 284 

3,

200, 686 220, 314 

23, 157,115 

2, 453 

35, 920 

6, 077 

4,

409, 219 

gig 

gq, 

. 

OA 

rq 

gi 

gA 

s; MigEE-EREgERRERIERER3RHEingRM ".4.i.S.Zr:AS -..: .-it-: - 04.i' - viOSOT 

P

giiggIllgimmgaM2E2.sR4ggmi2agsR 

2 §EPEr.-PR:=m1.1RmE.:-.E.F.- ,, g 

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ialEHEMEgEgREZnREMEMNER 

i 

c.

a 

IggiriggegeggRaatriegt-:weagweea 

...3Z. 4.E.:22.2.44 .6- .4 -zr4 

a 2 

.?r 

.4 2 

Corporation incomeand 

profits 

lIggiggglaggMaggagigqV

Migg14041gatilVtagraggga4 

WaRraRarffraraeraaniaERF 

sgn 

fls'ao ci 

gi 

:e. 

g g 

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g.0"%d d nelglEdggeersegagt 

«.ernour4a4S2i421WWa2a2BUZ 

gA .. 

g 

0. A ,Ag 

0:70,13.401PW 

SgiiA A 

19 

l 

'15 d°-. 

e0 a 

?P t 

hi 

40 

W' 

., E4 

STATISTICAL 

staagiVelragifjqgigag

IMOOMMION6W01601

IHREVIEVNEMAREEMMERAW

_4

F.1R 

4% -

'R Erti"nr-ER-n 

rizm., 

--.Z m 

REEREMRERgaiREERREFORE52:4 

giggtqAPA:45trrriTiggre n o ot . ... . g ,,, ,, 

599 Z ' 01

t i ' 28Z ' 6L0

g 'It o to 38 L 982 '

II L8 ' 9 6E ' 1

51 6 ' 1 8 ' 8L9

't 680 4 ' 94

'6 993

1 90 I ' CO

£11) 

s 'see ' 393 

in W 665

IL ' 8II ' 949

. 3 ' 6i1 ' ,WL

5 38 $ ' 81

92 3 ' 04 ' 361

91 9 ' 5L

9 98 994'

686 ' 8L681 99' 8

8 ' 989 ' 349

89 1' Z186 168'

,49 '2 24C 

L9 95 ' 9 ' 5106 904' 9' 63

3 au ' sti '

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ligggtiggIlatiaggaidceig

REREFER:AMERnEURUREEVaRR

.77-7 

Iggagg41-106ggglagqV

atgggalagagglignWagW

EUE5LIVURFAREUiRRIMMNR

EVAREREEREEgEslaRMREURE

5061,4M56MiWgfgatM

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a 

uo' 2 

t- 

%1 a 

0, 

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or 

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:7

41101galla6gialilllatidf

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a.: ../ 

.">. 

8"It 4 "g.P 

A41 

Z 

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z gnifto2i4ein.ITigt -

2 

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M* 

t.

g 

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...". P-it. 701480g R 

glp

- 

e

t
112 REPORT OF COMMISSIONER OF INTERNAL REVENUE Alcohol taxes Distilled spirits 

to_ 

irgi ''.., 40.-..4 a.s

g2""N r:11Pg§r4a5 "" R ggi7aggEttV4 g om.,0" .... ." ......" 

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tg

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a4g

nc° 

a a 41 

RA 

gga 

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-. • - . arra 

CUE e 

ii 

3 

Excisetaxes 

Domestic, $10. 50 

pergallon 

g 

R" 

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- .t.; 

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OR 

g4 

nil 

CI algal 

RARERAERRARR 

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.. 16 

AR 

Imported (collected bycustoms), $10.50 

pergallon 

• 

ga 

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REAR 

248 

eaa 

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11X616160g

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4MIIqgtaWag aaaa e .:Ke aaaw a a e 

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:419,p 

kG 

itt RRAPIEERRIAMARERRIEREFAiRRINPR 

 igiIIRMIRMIMAIMAIFIgggaR gaaggegegeaageatzeea-egggeaseaeaagg 

Individual incomeand 

- 

Total individual 

incomeand employment taxes 

..fa

AREARERRAAMERURRRAHERAARNREARA 

riallUggaREC46aRME:WREIRRVE 

gagAIRWWWIRMURAgROW61 

'cl - 

ii

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fI i Nrs slo

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laggatggaqt 

a a 

rgiggligggagga

aaaa a 

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-za gel-, 4.1 g -7 6 

R 

g 

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8

aggggeeg geageegagae egg aee4

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flew ineXICO FirstNewYork Second NewYork 

Third New York 

Fourteen th NewYork 

TwentyRrstNewYork Twenty-eighth NewYork North Carolina 

North Dakota 

FirstOhio 

Tenth Ohio 

Eleventh Ohio Eighteen th Ohio Oklahoma 

Oregon First Pennsylvania Twelfth Pennsylvania Twenty-third Pennsylvania RhodeIsland 

South Carolina South Dakota Tennessee FirstTexas Second Texas Utah 

Vermont Virginia Washington West Virginia Wi

i

ob

BE 

tz• 

tl 

1 

0 

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STATISTICAL 
114 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL 

Fq 

'6

tl 

E".■ 

>. 

0 

7 

22 

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4 

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ro 

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g.09 .O- 6.0?,e)flgtaT O. ) 2 1 ...4 

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a 
116 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

Wines,cordials,etc. 

kE7: ag 

5 FIER 

:20-s 

EEERE§ 

gaglE6 

mg 

gms 2EURF HE ork 

RREEERERREEREEE NCOMm M 

a 8 £3 

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al gtag 

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mg-,2 mgt -s 

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1

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141E1173as, a , 

ifi 

li.T afidi jPEIte414;attt 

TABLE 1.— Receipts fromspe cified sourcesofinternal revert 

Distilled spirits—Continued 

Special oroccupational taxes 

P

CAP 

ma 

aos 

50 
STATISTICAL T

gggt

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,:gggg4t 

"R5URARE55A515 5 EA 

i s .6. rILP6A4Si^^ 6S,:ago

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0NCOONIIN 

3 

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S GC , 

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1'15 2 E5 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

RZRAELiR51 55,55,E4E:-.:A5E5F.ERE55 155115;:il 

rititIggg.95Egggg=fggegg-gistaggggSgtgggg 

niA55ERAHERHE A RAM gg 

5 515 A55RITEER mm gag smrzLg ss 

N 000 00 Z.A4A N. 

stsraggcrat-44,-2. 

555i5EIAREEPEERER5AAMF5A955

A‘A'A'AA '.Ak"A

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..w „z t 0 gA.C4 A.46.„ z ,o og >s g 

'6 >-iZ " 5. 4 AO 'Aatvgia 

VaA°og OgegOt cd41 ...s.3,- .. - 

O $rifiWn10

< 

4.4'15 E, 

57AEM.FE.X1r.E.31WOOFPFE.MmmEPLooMMa' 

Phrn'15trIBI2Igagla.. 

Alcohol taxes—Continued 

Wines,cordials,etc.

—Continued 

(4. 

5 

Atop; 

SPAm 

0 

C31 CO A S 

A 

Mg 5 

A 

A 

S 

5 5 455E 

EEE5RgRE55E5EFEI5ER5TagEn 5EA 55EE 

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nrmreft-cer.com <a ,...om<mcp m,-,mml4<ac 

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OM NCON CNN CO 

M B 

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v-rsigggirtoegir:ictio, 

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1.-' ,6:1°“eg-' ,eat:gc-egd'flg* Rn 6g,le, 

• EEEFF.gliEUT1 

04- 

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4 

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len 

5 

Fermented malt liquors-Continued 

Special oroccupational taxes 

or

or 0 

4 

g437,

 CO CA 

M Fi cEEE•7: 

4-70,3-7 

120 

4=4-4a4a444',.:4-Tap.-44a..-agaaeawaaceg4.4- 

k..}Z.074.7>SWaVAA2cs.g 7 02ga?c,, g rc=4 *gal 

4,6-406 osa.: tig4.-7‘g g,„74 g4a06 

oY 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

73 EEEEEEEEFEriEEEERENEFTEERREEERRI

,7E • 

ro 

a5

r. 

O 

O 

O 

O 

IT?"

tki 

g 

: 

ti 

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Alcohol taxes-Continued 

STATISTICAL 

EEE@ EERMEREPEEEEERREEFEREM 

EggEgEntlEEEEEMragEnlfgE 4idc,?. g.-1 megito-ids-z E4agf :g-7-7 .6c1-7-/ 4.

59,482, 240 74,260, M 22,757, 012 

47, 665, 651 

23, 250, 582 

23,783, 1 99 

1, 878, 815 

678. 165 

83,544,701 

1,

508,468 

2,

882, 01 8 

24,286,497 

638,362 

4,

950, 492 

1 27, 727, 055 

1 0, 036,296 

107,218, 349 

6,

775, 373 

1,057. 865 

380,524 

5,

728, 153 

20, 876, 689 

1,580,950 1,759, 659 

440, 730 

5,518,375 

26, 1 98,581 

I

834

503 

EggEMPfliENCO EENEEEEV

g

flggIWIaggiggtgteliaTWE

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gritVtc: 5M-g:5"gf4W-rgeiC4ggagegg

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co 

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of 

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id. 

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a

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122 REPORT OF 

STATISTICAL 

ZFRVARREMINHERIRFEIHRREFRERFREFE 

COMMISSIONER OF INTERNAL REVENUE 

igggiwggg4g,04giggorgiagagggig 

gggggsvgiggvEsgiggvwggigr 

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'71 To 4 ^-0 = 1112. 

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.0nt8.tgflritE4-49;0°16.n1 9.4 >• 

ew&■ EZZwE-004,E.E,gc&SEa3 
124 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

STATISTICAL 

ea 

.ns gs" 

rgel 

EFsgg 

a 44a 

igEEE 

gg E

ER d 

ei 

. A 

I e 

CV •• 

Stamptaxes 

0t. e. 

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3.§g;to 

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" ' 

4..0..0 FN' ag a ga a -16ga:1 S-D NM :.5 

Issuesand transfersof bondsof in debtedness, Issues of capital 

stock,fore igninsurancepol icies,and deedsof conveyance 

Sales by 

collectors 

ViqggVgggWggriggiggg'Egggi 

EgggiEggEgEgggigggEggEMEHMEE 

aei e a 

Sales by 

Postmasters 

a , 

gt-I.G gg*6-46 gaggagEgErgEgg g 

gERE gEnAggg ggENEgEgEgEggggg 11 

Tobaccomanufacturers

—Continued 

E, 

i 

EiggEiggggiEgggiggrigEIREEREMEE 

'a2 flgg v,gEEPqEggrigggig4gE-g-Eggl 

. 

V. 

..., ., .... . . , 

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falro. o -g112.4? k I. 

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flE.-8 . 

Cigarettes 

- 

no.0 

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s 

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sg.= 

MERU 

g 

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00 

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da 

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ggri 

ggE 

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ggH 
Manufacturers' excisetaxes 

A

gg 

cta 

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44 

1:2 - 

ts 

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ERR 

. 

a 

c, g 

Tins(wholly 

orinpartof 

rubber),per 

pound,5 cents 

g 

R 

t:gdg 

HER 2 a ER REIM RE EEEER 

Floortax, 

gasoline,Si 

cen t pergal- lon 

degAg 

EEREREEE14 

g:=6 

ar. 

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6gflggggg Qs4g°5 1 

J.• 

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gg 

Ri 

Gasoline, 

pergallon, 2 cents 

4 

g _ 

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aer „ ggig7evgesgggpg.Tig „„ „ , 

ti- ,r di--t t:t4ds aaea aa .. c., _ 

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aa 

graAgg 

0 

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-6s, IL

,rn 

, . „

, 

Lubricating 

oils,pergal- lon,6 cents 

tva 

Ara 

Isi 

55 

an -a 

g 

EEREREER 

MEW 6564 

iiER, 

at 

RE 

x 

R 

g6 

RE 

---- 

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gss 

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gRAERRERRRihRigERv4RAttERacivgai 

21sE8 

omAmo 

Sat4 a a a 

2 

do 

1 

-, g' RgR 

" 

Silver bullion 

transfers,50 

percent of 

profit 

A RA- 6 

4 ..; 

A la- ER E V' A 

'4 

R REEE 

Rga 

Districts 

.g..4 -.51 

1;'5.1-. 

27.7, 

§ploo 80-

v. 

- 

5A,a=s 

e, 

?A',7.mbinEil5 

gAwinigi 

_ m 

i., t 

3 

-$ 

4 

s 

g 

4 2 

.2 

9. 

0 . d 

d. s d otfwww 

.51,91V 

Eft 

A s 2„g izzz2z7, 

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Aa 

tti 

ti 

M3:1 

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of 

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C-) 

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tl 

ro 

ti 

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1)

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O 

P. 

) 

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a 

6 

g gg 

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ti 

5 

_ 

.-., 

. 

a 

R 

Li3 

6a 

RE9 

6 

aa a 

EA 

a 

g 

Xd 

E 

' 

i 

' 

g 2 

, 

2 

c'

EigHEERRERRERRRIEFEHREE 

t4gti-ggics '-'gceac a4 

4-"

r="t: 

, 66g5I 

R22gtt 

..- 

„.,...., 4 

gW5 

S'ar-Rf220,42 6K4d, 

5ffigg A6:156 

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g 

6 Ag'.° Fq- E6,,.% 

a4 aaag - g 

R 

ce' 'tT2 1---°"- 

;i1 

0. gr= 

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ZS,. 

--.-8. 

g5g5g5651AAA5gA

EgAAUREgggEMAaaiiigiERE 

-6P64W g 

z';: 

x 

c 

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8 

c 

c ... ,.,. c _ c12 — 

2 

c 

i 2 

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2 

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fl; ' 

g 

I, 

S 

.' 

126 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL 
128 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL 

0 

0 

O 

Radiosets, televisionsets,pho- nographs,components,etc., 10 percent 

-ri 

P

,o.fa, 

filan 

—'4

cl 

0 

Electric,gas, 

and oil appliances, 

10percent 

$46, 736 2, 975 

1 66 

2,

258, 671 

3,

81 9, 501 

3, 672 8,279, 381 

57,41 8 , 120,445 

1 5, 71 9, 372 1,224, 169 4, 21 0, 549 548, 695 

808,446 

3, 533, 572 

1 0, 051 1 2, 61 3 482, 208 

2, no, 755 5, 51 9, 081 

770, 364 26, 508 3, 265, 305 746, 614 

38, 339 

252 

193, 682 

776. 84 1 

13 1 

1. 676, 071 1,1 19,189 969, 81 2 

202, 899 205,280 

734, 908 

Electrical 

energy, 

3 58 percent 

Partsand acces- sories forauto- mobilesand 

motorcycles, 8 percent 

Otherautomobilechassisand 

bodiesand 

motorcycles, 10 percent 

22 

riot 

==s1,3,...g 0, B 2c2TABSTi 

g...

to-, 

:g.:.1 m 

, „. 

9: g 

2221 

g!;g:.ig 

0,,,,,,t2 

g 

g 

,...0 gRA 

g gggggg 

., ... 1.vang 

.$

ERRRFEERUAnEFEER5IEEREEsUEPERE 

- :4EgF.71g oce:t6.flso=ei1t...,.dar -747g - ct.A2' Am .. 2 . N 

. . 

6 a 

' g 

MNM 

mie 

EVE 

6 

E 

EE 

Mechanical 

pencils,pens, 

and lighters, 

1 5 percent 

ii ER 

n2 

cs.i. .4 

E 'GE' 

g dai 

RFEr a FREE 

gg r 

ER ER-PREE 

li ge 

Districts 

0 

m 

.c.)O t 

A 4....1 

Ah 

-0.004r..,5- xfli 

tg , 

.. 

,..uv 2 Ii— 

= e§ 

>.,, 

I.1 

Ai. 

4 

'# 

St 

2 . watttBatgloc, a0Zza,A.cdge. 

. V E 

414Zztzg. 

a 1-.8>-1 B q4 4 

ElqW . B5 

.b1 

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Am.Wr„, 

>?■ Z., 

Ad 

30 l'• 

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me 4' 

a a a 

6 6 4 

VIER 

6 

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R 

Itg $10 

g gl: 

m

: 

 a 

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ma aa 

in 4 

R 

g 

E5 

Og ' 9841 ' 89

FiRRTERREREARREEEERRE 

'; Wil ''sgl' 65' gill 

4 6 6 4 n N 

r0 

89, 544,456 

1.1°113=0c 

EFEREEREEEIEEREER5REER 

isMatIgagriggg465g1g 

a a a 

'es MO ' SW

)1' OR MORE THAN ONE 

MEREEIIFFIgE4RAE'llgt 

AERREEHAIREM5EZEERaFE 

91 1 921 ' t09

g Vg 

E ERR 

g 

ER5 

g 

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aa 

aaa 

ERE 

. 

 oa E 

f 

e 

,- 

2 

9L9 66e i 210 

RISIN G PART 

n1E:i 

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EIEEEEEEEE 

a 

'WC' 

FFETiii 

a5, DWI 

147,445, 304 

A

S AND TERRITORIES COMP 

f orth Carolina corth Dakota First Ohio Ninth Ohio tleventh Ohio lighteenth Ohio )klahoma )regon First Pennsylvania Twelfth Pennsylvania Twenty-third Pennsylvania Rhode Island South Carolina South Dakota Tennessee First Texas Second Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming 

Total 
excise taxes—Co 

0

0 

0 

4 

TABLE 1.— Receipts fromspecified source sof internal reve rt 

taol REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL 

.9 

mhS 

' 8 

 alK 

-. 

i 

R EMEER.I.EgggEggggC.OgRgn' 6 t 

.5'ae 

ig..ig 

g ser -EmtRR:-. -R%az: - 'RX 

 - 

g

Ngge. r;p:d 

c.,52.° 

Photographic 

apparatusand 

films, 20 

Percent 

gr^Xg

neinuqmm 

§ '''- g g-r .— , 

'2" 

2

ggI 

EEF 

g

gR 

a I6 

RRE 

 a Altg 

NIRR 

Businessand 

storemachines, 

10 percent 

TM 

0

Eg 6 

g 

F -; E; ERE 

m. 

z,.:i_r 

R RgER

leg 

En. m REE 

Igg ggr 

giEg 

Matelres,per 

thousand, 2 cents, 

and fancywooden 

orcolored stems 

51/2 centsper 

thousand 

. 

. 

c c 

m 

Mechanical refrigerators,quick- free zeunits,air- ' 

conditioners. 

e tc.,1 0 percent 

Poi 

, a; - 

F-= ., 

6-„,- 

-1 i_ 

gR 4 

510.7

EgEHREEEER4 

45g-T' fl g 

i '4' R 

g 

Z 

5gg' 

EggE 

Musical instruments, 10 

percen t 

ER

E4nn . 

 g 

n 4 Enng . 

'' gqg 4 

n nms:m9.52 ...0 

'5:1= 

4 REM5RR 

- .,.., 

Phonograph 

records, 10 

percent 

gRE 

. 0 

61 g gREE R 4 R:g 0- 

'I HR

!flan 

,Id 

Districts 

'''''1471=" 

o 

ace° 

.44664r74Omi'r:14 

Roc-'735441:'

t0

om ,= 

e) 

49A:0 

_ 

. 

t 

= - 

2._ 

4 -,1,a r„ r gti 

— 04,A=-Q39.0Z: 

"- 

nzr4wizr

WIZIztz 

2AE4 

. 

x.. °,1 

gErgrigggggEFFREEERE4P

4 Rg g2- sg.-ragaag a. -Nraas 

74N .. - N .7.1 -- 'pe' 

'ret) e 99

ag 

gg 

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ei 

:7] 

gg 

gg 

gg 

5E 

Et: 

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Et:RE K 

33,765

542 

!' 

RE 

Plg 

HEE 

4

ERRS 

' '6: 

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g 

g 4E 

-r . 7j 

g 

85 ' 192 Z ' ER

.... 

nr-'nR 

co_ 

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. 

. 

c. 

g5 

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5 

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, .T 

m 

crt 

ifii ctE 

g m 

rg P 

4 

if: 

57, 969, 730 

4 Pggn MHO 

H^ 

R4g 

ro 

mm 

-, 

, n 

7--

gns.744m 

s"snn 

, F.- .: . ui 

4 

" 

6 tit ' 365 

EgR 

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. .. 

FE:7E Eng 

. 

9 1' 1/2 OW n

■ a„,.„.,-„, 6 , „ u„, 

Twenty-eighth New York North Carolina North Dakota First Ohio 

Tenth Ohio 

Eleventh Ohio Eighteen th Ohio Oklahoma Oregon First Pennsylvania 

Twelfth Pennsylvania Twenty-third Pennsylvania Rhode Island South Carolina . South Dakota 

Tennessee 

First Texas Second Texas Utah 

Vermont Virginia Washington West Virginia Wisconsin Wyoming 

Total 

220041 —511 10 
C

O

STRICT 

waw Etz 

2

4wm 

r-8

texItt. 

qmxzgzm 

'-tE-012a1, 0:E. - Fat 

al401>mem 'Fano 

;4 .aZZZ4411;Z:;c4OELt.EFZ 

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11 40 TiorgAtA 

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2iggiAjeTe7,8.1 E. gs21 g 

isIdammpoo-pitat x,E„00,E÷gae.".1000 

oa C.4 

figfl

§11=Qu'eds4tap-ea go-4 

011inUaglIB e

aiaaoe)ArTiaww$ 

2 OE 

a 

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tai§M3nl

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 EZOagiWagerag-olgagng ,40.mPam,-.5 go!EU 

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TORREEEEHOEggEgENF 

ggagg_4 aaact;-T 

g 

,eiNENEAF. 

g g 

N 

a 

Fjg 

ogA 2 0?, 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

HEEESiggagMEMEUMIEORMEME 

gatig155601aralitM0115M4641666Vg 

EigggaggEgMEMEENIEEOEFOSE FIEHE 

gPJfl5trAtiT-ArilWiE45ggialWITOM 5Fig 

aaaaaaa 

aaaaaaa aaa4 aa a aa aaaaaaa 

c"=. 24 °'!.m'@= ^2n"q§-21EFROEFEPEUEria 

 --ssiaagam aaqagnasima ,”2 aggRasErim-;m 

- CNCCt,t4C.N4CNO,A NC 

STATISTICAL 

FEEE!igOgigHEO

FEEUFFORgIRMEMOO 

0FOEP 

■ C Na aa∎ a s 

gaggWaggtagiagigia 

W2VilEggAgEgEgFEEHEg 

aa∎.5aaRavia■ aa'aa 

naggAARM;g

nigUEFEWOO"Ming 

2POEPURP a a 
3 2 Budi 

S C S 

5.1rBIEW'Swr 1° "1 , eat. 4=4'- g:*1,82h8gd:: 

ggaggagg 4ftgiggggg - g 

5555E55s5.=.=555 

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mm - 

gOggggag 

TAIERHAEREEARiREEEEHE 

ggg“ggrgiV 

ggMgrUgniliggiga 

RHEA:3E535in 5MEEREEE 

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3 

S 

A 

CO 

TOTALS F OR STATES AND TERRITOR

S CO

S

STATISTICA

535 535 

ERA 

134 REPORT OF COMMISSIONER OF INTERNAL REVENUE Transportation 

of oil bypipe- line,415 percent 

rigg n fa- g 2.g:trsg!tAt4142gg gr.gg 

slew gr at tgg-egg-; gg 

a gg g ., 

Local telephone 

service,15 

percent 

Ig5Aggr

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'; agigggEligglatqlgOg §rg--4114 

g„,,,, g g..„,,, ..„;iri 4 1 _,._, 

REEEFREA Eig5IERREEPER5E5 MA FERAER5 ER 

:7346 areas rin4ggn'teg t 1 Irttiigli 171 

z g-om 

5-i555g-fger555ggqiti-rEEF:A5g5-65E55 

REEREARERREEEEEREREEERER5g35RARREEREERRER 

m- m,„-- m-E mm--m m --E5.%. _. 

 p

Sugar, per ound,approxi- matelyy4 cen t 

g 

ERE 5E5ER E 5 5 'EEE, R Rio 

IRE gr4g g R 1 E5E ' gEE 

e a e a aa4. gi 

glggIg5i5Wiggggiggiggglegggggg5gglggi 

EUEREEEEEEENIEREERERRAREEEREfl'ERREERERE 

i.4agg..ra t4,4.4 g..7aeee.e.4eaae4a a44.4,4ggacee 

E115501EREEEEERREgAgElAMEASEIggEgEgga 

Ri3REEERREE3553EREER33351EREREEREEVARREE 

, ,,, -, a-r- - 

Districts 

.1 ..,,e.„ m m ..- .. MO wc,za 

c0111U 0°1t,0.001-!em 

gitlIZZZM $...,, 

1&014g:s RV 4% cttglat ingl 

..4÷4EIMCC$CW4WairCI4o21W1,4% '6 ZWZromWZrol ro4E. 

- 55 -44 r>.e..e.: 

- aER R;AJta= 

Jd 

tA ,m 

;z,Z 

E 

Miscellaneoustaxes 
136 

I

B 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

. 

M 

.. 

RI g v FE F t tiPc 2 

. 

9: 

Admissions 

Ticket 

brokers' 

sales, for 

amounts in 

excessof box 

officeprice, 

20 percent 

3 gE 

. 

F, 5 _ _ Fm 

- 

. E F 

. 

0, . g 

N§ 

a 

da.;',14.6,6 

Itaaa5tiataalailataflaagaa4ffiallga 

gEiggEggggginEgEEMEigH5gREggag 

aa4'.4E4ae.saa.:-TE:trsoe-rae-ra -aa e 

Coimoperated 

amusement and 

gaming devices, 

$10 and $250 

per device(prior 

to Nov.1,1950, 

$150 per gaming device) 

igiggigEggrallEEFgEggFORMgEgFigAll 

gilagq:agaaa5gallgagaaVgggagE4g.4 

FA

„Vic„ 

tr8 .z 

gtiki! 

2,1° 

pagagaeggaaggagaagagagtaaa aagdi 

igg5EgEgggriggEERAFFPUgMEEMAggg 

40E 

Tal 

..2

, . e)PR 

gagagaglItg 

ggEitlEggEEARFEEFFEEFREFggMUEFgERR 

a 

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,, .4 

4;R'' ..- ri 

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aggWriggr

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IngggPSIONAW ggiq 

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a g t 't).,..21 

 0.-&tgoo.°. 

r60-t0tZt 

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se.r.-ra -.-1 - • ' g ni 

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- 47,,se .6.6 1.6.60c4,6.6,:4e.4.46 .1.; .6 .6 , 

N.. 

4

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fl.: E. . 

gEgiMgiggigggEgREAgggFFURFEliggP 

lagggtiliggElgigggdigE:gMggt1 

z E,!faae ae 1 ei.ra c4-Eiaa efti e a 

I. 

Districts 

a 

0,2ral 

:5.1,3 

dddW 

g 

oupwii a.4-co 

wd&Ageol 

a 

5 

4.*01, 

078 

4.2 

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ni „i,gs 

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! 

STATISTICAL 

ma,ye.,eve 

6,429, 557 

2,179,111 3, 346, 316 5, 925, 062 

776,495 

3, 098, 275 

1,

488, 985 

2,

193,004 

6,193,161 

4, 418, 223 3,236,244 7,669,555 2,837,004 

5, 067,535 

1,137,625 

2, 438, 783 1,054, 975 

5, 616,168 6, 586, 297 

12,494,818 

1,319, 058 

-593, 959 5,491,794 6,138,740 2,678: 241 

5, 020, 069 

' 599, 430 

a"tr:Rtaflagaa5aaagaggaacz5aa"-"ragaga 

InggragggaggEFFIEERHEFF 

ilaitMlaailaadalgalWalgtg 

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I 

guaar4pagauggagalgga4gaa 

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01 

O

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 F

, 

EOMFIgU ata ggiF154 I

gg

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 a-ae -;aagaagaa . aaa a.i- c€ 

899 822 693

EglEgggREEMAraggHME gg I MallgaSllillagagaafllaalg

iE 

g ag a e g ONP a _.. 

OW -

1 01 t , cc

>tz- = ,.. 0 

5 

Z' 

.51 cPglo:g - c) -zi 

qb;u n811§ 

g ,A4 ,t a4 = 0 

Sg i f44412 i14412gin 

isaEagRa8VAanSgwa3 

c

-cw = 

F i 

)

4rEt 

fh'anllsv 4°4' 

fl,..4>. 

, 

7 

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agEggAMR'4 g,MAPAAREFAAMII PI'n 

to 

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or 

t

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s 

4212g8L32gaAg 2 gge,,, e“g ,e,,E4 

s-rasass -ras-r040sesgssss-rsa-raCa 

to 

Cr‘Q

i. 

AnflEERES0RAHA0 EENARgR 

n:gaWggiRrStalggiggggigE06,1 

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11 

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0?-3 

a-- 

,„„ 

138 REPORT OF COMMUSSIADNER OF INTERNAL REVENUE 

R &FA XgR .9natga a§ nRARR2 

a . - - 

STATISTICAL 

ggge g g ggg g 

• 

it 

2 RE AUAR , 4 PnPREA'WERligA

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fri 

Miscellaneous taxes

—Continued 

z 

H 

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4 

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STATISTIC

t-t0.0 

'SS 

CO 9.;52‘7,1555 

et a CI a 

0 CO 0 a apix, 

140 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

eqy 

em 

 2°x°2. "`4: 

* gait SW. 

0. 

45 16, 

.-.000000. 10 

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153 ZAAR ';': 5 1gR A 5g 5 5 8A AA A 0FWIgl.= 

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91 

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. q°°"0g110.0 . .eAatera 

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22 2 2 52.5 '..2:2SS 2 R 5rcco M ° 

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STATISTIC

ace 

S. 

eg 

Coconut and othervegetableoilsprocessed 

S'a Iz 

PI O 

se.Ag 

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S 

1 

0 

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=118 

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7-4 CC ■-• S. 

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itlaRZ.C.U54 

% 

12. Ei-AS” 

142 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

8w 
• AE 

E 

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!»% 

k'Erga 

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F. 

.,

E 

. 

. 

e 

. 

.0 

.7.,

. 

, 

® 

g 

g 

g 

.- 

z 

. 

CV(Vral MOW I MK Third NewYork Fourteenth NewYork. 

Twenty-firstNewYork Twenty-eighth NewYork North Carolina North Dakota First Ohio 

Tenth Ohio 

Eleventh Ohio 

Eighteenth Ohio Oklahoma 

Oregon FirstPennsylvania Twelfth Pennsylvania Twenty-third Pennsylvania RhodeIsland 

South Carolina South Dakota Tennessee FirstTexas Second Texas Utah 

Vermont Virginia Washington WestVirginia Wisconsin Wyoming 

§ 

-g 

cg.. EENEE?5?.. E 

ge 

a 8 

wit4 

BIS 

f °I 

e 6 ta: 

Ek5N 

40 

97 

i71B 

'IR 

REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICA
tl O 

STATISTICAL 

1.11.111111 - N a 

R II MF R FUZUFigUFMEF EF ni Mg4650ragaggi l aggl 

gt6AR -06'6 d 4T6S0,-rrei2g44-1 7.'R:7,d-r 

REARRPRxggl 

OARWMIgaggng42 HE 

riagg 

EMpRHEAHMEEER 

- 

,ta-;ar 

iRgenigHEOU HMUU5g -

oping-rAacigveg.73agget:Agagi -

.11 

.1..•ss.ps 

054tnac4c} 4 Et 2f ge E, 44 gA-4g._V0ag - 0 1 1 Amoo54-.7.Ne "R.214 

229047-53 11 c°E"4“°°>. 

A.00,0 

1-7 

tfl.s 4 

ag 

gittg4 

-1;53 1as0-e, zgom 

146 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

gRUMAggRUMIOR4IHRIgU

Oni#011i6HOMOgMUMRgRIn 

MEBRRAJIREMBEFEHRRAMEEREHIARI 

g:IgElgi 

aa 

?:0

itt=iglaggtOgglOgagdglaggM 

FIRRHEE:IMEFEHEAHAREMIRERRAn 

1 ''g- 2,flg.,, gg.4 'soii:Sgdgc4-gd!ig al4-e'7.W . . . 

d'

Rg 6 gt: 

WM1 

ela g ar 

Micinn -rar 

gagsgRsE g 

-Irt 

co _ 

0 

.. 

EiniUnE§4r7rig 

a s';gr;r641 gam 

Co 

§ ggiriMigg§rgri 

 srds g, s4Ece: f.-t 

Ha:InARUM MEHORRRRIFIHg a 

Diesel fuel, 

pe rgallon,, 2 cents 

RUMEgiRE0,101n-00HE00MM 

.vggggaceggy'gpAggggagg .4-AgglAg-Tli 

_ . 

» 

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

te41Pg 

6a 

g

2G28B 

gg g 

ri12§ 

ei4.: 

Cl 

CO 
STATISTICA

148 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

0001■ CM.COO MCIat0.00 4570.4. 

ARE=Mniv42ntle 8BBABEgBAPO

.

M 

0M44gdgr..WMgggigg8NgtiggW1W4 ,1 ;7480; g618 

tOS ,8 

C o 

NERVIERREWAIMPARE,A*skfrsk.As s x-sItridigaglrigeRF:RaWnWi

01g15174iIMMICUREMEkkkgyiVg! 

z e5 § - ;,444 S 

5.1415MigigicWAME:fgrAVIPV41

gigtOtangnIgigggWggingtailW 

EERREMMUREFAMERREMEMMEHEAR 

46tIg 

Pg=s iriaiGnEIEREHAEfl 2

--- diggIVIERvnntiWs: 

=a~Na„somas 

8 

O 

S 

.101-0-ANT VaNCOe.N.3CONflMO

LOW 

44;48444.944;14Ffl“44 ,t-Ac'fl44g4nA 

EMIMMEENgEi EningEngaMEEig5. 

gillitgtaariffM5Ogligataigg 

tigdgElaklgtiggeV6545fliS=VggilqW7 

Vtategg5ggaggE

glggigggiggiltigggraralgtigalag 

:191.1HENEMHErilEEEREREHMEggiMig 

45ggatlIF:gggallgqng 

afgiffiligalgaliaigaq 

MYR§§RMI2EnEREfliggn 

-g564.w054gangar;q242W 

-,

ERMARiniMEninnEga.2 

44gsrggvg,gwgglgqoar; 

t-Nt■ ODNOO. M0t,M.0 ,0.00007,0500*1,.N0,.4th 

g.45.4thiggg En./gigg c ;ji 

MgV6SFAII:Igg6Fildgigle: 

tOggiFiggrighlagAllni 

EMANIEUMMInliaPign 

b 

A 42 E5 gt g. 

I I 211v10,Pg .9.1g 3 herg2eg.334-444°4 

35iz-rit3t7;27ssen05e_fleZ 

e e g .4t4 

I Wlt§ 

.0 go.;31:, 

ImW.Ea&eag4.44 00,3 El ig 042 43 

 ma32.44W3a144g4g4a4404k0 

mp 

0A 

JylUtitrat

°0(3,mi sei 11 .03: 5011:1 

.1 .4zoo

A lgr,oca-p-siegmwAsxnmi. 

34 

4.3 0,7c1 .44 ,zes o eo L 

Et e OliEtiligaphirissk 

401_429 g

-2 

4firqlsag . I . srr..g 4)4k40gg, li at gi 

. 3 

V 44A-m24 n44°E.P.e.3 EZZm.gWOOm Amm 
c'e; 

A 7 g-s 

wo 

;.?„§%

z.2* 

0 

o°°, mm Ev 

g S o .0 .4 . — 

a Z e 00086 4S WM0o a u Z eouZ 

)71 

21% 

-e a 

ntace 44Ag —e 

mN a0,a)tei 

Locationof collector'soffice 

e 

150 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

C

.WW4M,A4401N.-0404m 4.

144W,.WWWW,-.4.40WWW.Wr-Mt ■ 

01 -4gMgg7A,14.,1A4z4gAggth-AISFIgg;iMggishg;1 

tcu 

STATISTICAL 

Collection districts 

aHagElaaia3MaNiagEaliaaaa 2225 agA 

■ ,100-WwWWW4.4■ 4,,Wo 44 0wWww,Afl

■ 4 ■ w 

 MglfAiiO416 1gOiggilaWnqgIg N 

4 r-04 

g1015

aWlaggaantigaggEWRiaaWaaiMIE 

,5§1110011:1515.0d,VWflIt 

04AggaiggiggaAgdgaTig0AgaTOMq 

WWW W0wW.--t-M.--Www ,0 0 m

-1..1,40],m40WWWWwWel.wwwW 

eticie-i7:1--,Ar‘d'SS°:e1c6 c6 ;."-: e-;:tel t e: b(ece:: ::-,06:1,672A T 

gaiaaaMagaanagaLIana taa s252 agrialla 

agg5W4a2gagagM2M52gan-120AUggi 

a 

ges.6etaaa 4- ezime ..Na ab:

.402 

Wagal2a2agagagEagggaRM

RREAHMEAtaiaEllaalligaRgaEagrAll 

2Eaaaaaigg 

tzsa4aera 4-ava.aa 

4oi ae 4F44- 

W04Wt■ I.0000014t-WW00WI■ nr-Www, 

illaWalangE

Iggiligggg5001WWW 

anagalaailaiiaangaWarif 

AzelgriggoActdMI4AilAth:clEaflet 

00gq0ti64. 

5F§EaagangnaiaaaaL9 a2agaia 

OWIVigg:1155-

tWig3c424-1E445gtaggignf 

141Vglag 

co. e!Ael. AAam..-.A00.A. ce0AAAAA 

mA.. aaaaeza.-1AA,-;aaaa..aAe:a4,4a 

. 

gaggail2W2VY122AflaigiMa 

ArMagaaaFaaaaaaaFaa2afliai 

<444 

v-vv 

2gatahrzss6a0Etilaagang-xas 

aaaaaga2FaaaaaAna2E2Maaia 

MCf.,GoNNMNX., Oimy 

G 

A 

A 

4 4 w 4 4 . n . t . 

0 1..041024. 7 ,IPEET2,10 

7=gtigl 

7.4-mmoriicE. 

0

0004p...67,40z..‹Ammgo 

il 

mop 

t

416, 

P.13 e 

B eZ .$2 0, 

Z..-ga ..- f, "FAS - 0 0= 

AZA 

a'—°4 -±n .- 

gt:400-ggli v,-‘47, 404 1-4 .sPI 

gge.-5.-5;z„...ilevvv.vgiv.A. 

oBA 7 :47AZEgAA2r7 ,7 8 A7A 2 *a 

ft, FEIZZWFWPACONFFAme&a.r 000 

2% 

.2. 7* 

o 

 mow m 

2g1W6 2_, 

*.sewooArsio 

ae 

Aa 

iE 

Ate 

itm 

.°4) 8 -1 

eg 8g 17[1'itgi 

g.p.s°012 ez,e4. 

aS ecgo 21,4izz -0 - 

ww,122=wflzzzwwzpimE, 
STATISTICAL 

°":°"'a 

cONN=Ne.vDMNOCOpr.ON

WatglellagtVggtigggt 

itgaggialgOEIVMSVW 

gME§g§gaEginiTigriNgin 

'iletriaigaE:riggtegeUg 

P.155,4gralgagff55615:iigi' 

FinEntalgalaanfElEM 

ct1RagSg$MgrAR4glitt2MRSIP,AFAAPR 

4AWC=c0c0= 

—I II"' 1 N.- 1 

grp4X5gpte--1

gaagnIgggEMEERRMUE 

ri,inglEinggEggragErMi 

4qp-40q4 

sErg:;:wiggarrJertiegs

RIU8war4R4F4:11EMIA.Wi 

MERMUMERFA F.ERVi 

4paer 

co 

.4

.°R

stt,gro'lthggecl.141e,ltgi4. 

-LT-garat!ST2RIE37:21NERFFIR 

^ 172 ^ 0 S"' 

allagaWriggAWkl. 

-76°6^ 1g1qp-gg:Igggggift car 

F8.1 -,g.coci.A 

gErAgEgn-augg.HERHIgEEE 

ArIggggr:Vggg'gi5

tigagUg0agggrigg4WM 

6-;'.4E4.' 

0 47, 

bm 

.2.41 ig -ar44 , 

PtalgoE 211ta 

og 

ifiA4 0 432ggigife, 3 1;gi Cttt etZ 41,502t03 0 1 E MIV O 

EX2wFrAPoowEEgoSinE44ml 

a 9, 804,305,298 

g 

2 

152 REPORT OF COMMISSIONER OF INTERNAL REVENUE Total internal revenuecollections 

.814 

4 A it 

1 1 

;;;;;;t1th“iggs:ris:AdAgithlgOiz'AgAg ?:gel 

81 32

glriglagiggrialgggrOlgOigad:44.574010 

OcaggOltaalgigagg:ggiatanitag 

ifE,M§MFMREMEggifIrin5IEEPIE§UE 

. . . . . . .4- „,, r. w 

61 19

alagligtilaggaMlaggigtVggggag 

inEFREAPEiWiggMggRHERFEEMEOREri 

05,10gagEggagriMaWFIA-2--reMel4Rel 

Miscellaneousinternal re venue 

4 s ,ifi 

4"' I 1 Iln7:4 ::::=I 0.:==== y. 8-o, "nom.. ..AN:". .T-4 7 .. K—, 

°t°b 1 1 6281 

PETOP-gP':7;41"1,94r2-15554g'g"grailge 

italligagelgla56006giggC1504g0F: 

zagnEgngiAnnWinigEgEllnEngal 

1261 

EREFinnggg5IEMEMNEUE5igMElltigg grigE 

rtiF:g.i7ng"iriget;Tig'Wg7lt:11"11.65‘10 

gatglgalggeeriggeWlagtaa 

Corporation incomeand profits taxes 

nc“CqWMCCOMCgDmetN.t07,NtC,4,0.7 

fl.t.mNOMoci 

glg44-9W-ZWANt“gAggigggl

■

-44 ei4A,74:ALtd 

1952 

5gqgOVVT4510FlagrietV2Wg'ggP700.1 

ggragliggitgitill'AMMelangFlaillgrl 

FatinigRiEgEggagEggRIFIMEMEMEMig 

61 19

iDMiggUENEiRiFsWaggEflgiUriEgEEHR 

t:uag6OggallOgrik4614t45 

11:=441417.1gq0grAggraggWg',54c5Fig0 

Collectiondistricts 
247.M22:22:94825 8 

agg$6gga' 

ggtaInW5g 

5,74038ggEnrIg 

a -7 .4' 

8:284222222,t2.2 

" el le el • 

IgligOng= 

EERCEREEV0,51 A 

42225222282t2 

44222222422 

MgVigigdO: 

EinnMgag§ 

iclUgArn 

gt,e.egget(ea.60; 

`28 

7,1 84:4222.

aR.; 

14282.8.2 S 

kWignEW5 

11§§§§§§§§§§§ 

N aR aa.-Ea e 

g 

g 

a 

A 

8 

o 

A 

g 

y

° NyG S 

11Laill) 5 

gwag; 

t04 41: .1, 0 

:WW! ! 

"ggiqa 

3 

g 54.01 1 t 

111I 

OM c pica<1 .a 2 „Ag4 

v-”,gusg. 

H,gg g 

g4s eg. 

cE

Dgelc'a 

,5 “42EA, Y

e

'O0 °' 

 ;Pta

ci 

5&ile..6

-g

m w'Ci u o. 

- 

114-0gg.- 8 8

a. egg sg

coo

-o

oG 

` Ty m 

y

44Ent

uEr=ifla 2 -oa.ii 

ti,gglegf..nb

0 , =e'er

gaW — 

Tyjp = 

"045 g4g

Eq2-rfr

-024 

o

Sco.- 

>g

.Ooog o 

"UP 

.9Ao E 

70OSitEt 

ti 4a2a2ggrng 

154 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICA

a 

08 .0 

ptagE

EI4k 

a 

822N2222. 22F=82892tt. g! 2M'a=t-4. 6rgNL7,agi7.N 

" -I ' 

a 2a c c 

Total internal 

revenuecollections 8 

gatigagw4gglog lagg-.9ggmIgggring 

adaggelgaga0 5gETigliggg7Igalge 

EAMIMAHREREEIAR EiEHRE5IMNEARig 

- „ -- a .- omgaam ,-1 ..„ 

Op 2 

.48, 

0-.,2 0., 

8284:2282,4812:4222281=2 522=2222832288888 

Miscellaneous 

internal revenue 

collections 

fligREEEMEEingEgl EMEAMM9.1Niiial 

g'.

Wilialggitig55,4 gglOgggga.Mia 

274ggflgg'62V4V' gr-.157irg"rtr.P.A 

t 

-4:',,t,

m., 

4 r1 WITA 

4.9.ra 

MtPrat22Zp28284252228 4fl28288'22.8282:-.228'2 

6 ' • •o644 '.4.4 • •cd44 ' • • ' e6e4d.4 •Ca • • ' •e6 •p:4 ./4 ' ThIndividual in- comeand em- ploymenttaxes 

CO AagEgE2RHMEM MiEgiRPErig5.1qESH 

MggggElgrollagft grgVii5Miggiggg-16 

. :4ggglIgUggnIgrigg ailiggr-tilgligal . 

tgig o 

 8022a 

a82.a. 

be88. 

2224878222,228222 2224282822882828228 

Corporation incomeand 

profitstaxes I 

. rg-Iggalgelgaagg gaggqgg's2PWM4d 

Iggagglgatirgg ggg61005flang0 

UgMEHRECiMilA:i EgRREIRULEAFIFIA5g2 

. 

ni

gra O. 

g 

Won 

222822E-422,2222=8 2 22F428222:2422282:2288). 

.: • • .4a • -4 • .4a • •dic444.4.: • c4ni..14.4c4 - • • .4 R'C' •.3”4.4.6 

Populationas 

of July 1,195 1 

(Bureauof Censusestimate) 8 

a' 

ggillgagtiggaggl agggElEggIgggag 

§§§§§§§§§§i§§§§§§§§ §§§§§1§§§§1§§§§§§§§ 

R-p-ra aa• aRa-taa d44.6. TT dr .ed didi.4 

) 

Statesand Territories 

-4i 

"ga 

"m 

g a 

<00upgcS'mS4z442 

14.az 

g

re .5 

.1

2 

20388:4 

.itga'15 g° 0 a6 242,43 .0 S .g.tfl 

0 

'-' 

a 

A 

8 

0 

 2 G 

B oagg 

t-L , 

Zzaz, 

" 

" d 

18 131 g 

a 

I g 

zzz000p 

cqtrdln 

'....... 

00P 

- 

g ° 

§ 0 i 

° 

4 
STATISTICA

ed

g5W5555

EEEEEEEFEENE

;,&;geb:w 4 

U

g

eioegee'r e WgigtigUI 

AFRiEggg2E3g 

156 REPORT OF COMMISSIONER OF /NEER:NAL REVENUE 1961 December $2, 648, 690, 578 601 ' 839 ' 338f8 ' Mt ' L20843 ' 809 ' 091359,086, 1 87 1 46, 952 899 ' 9961 09 609 ' 9L99L LOO ' ' 16L

gga 

gEggirgEgE 

'gREFgragERE 

ea gg 

207, 223, 412 

2, 775, 772 

2, 280 

784 

. 94, 1 25, 123 

33 1, 044 1, 106, 840 

PA 570 

November 

$159, 683, 092 

6 '8 O S ' 92g

4 381 £191

8¢11 e80' 8' 11S( LW' 8'42 8 ' 064ZLZ ' OCE'

E ' L09 ' 811 ' 191

t ' 269 ' 9L0

99 ' 899 ' ETC

-

F3MegME 

REilE3Aga'a 

zee.; Ra -;we 

., 

WO ' to V 88Z

4, 258, 052 

4, 555 479 

1 36, 91 7, 060 41 2, 909 1,987, 610 

AO ORS 

October 

$511, 877, 707 

NZ ' t59910'

1, 226,528, 91 9 

1,

990, 351 

1, 228, 519, 270 

3, 490, 407 

1,446, 693, 693 

1 ' ZE1 19 ' 6g0'

aligrEE 

HRH:HEWN r27 4-e ,:, g R„ - 'O 

093 993' ' 391

4, 605, 41 6 

5, 288 1, 312 1 31, 441,734 

384, 245 

2,

203,051 

RN. /RI 

g o ld quIa as

$2, 942, 105, 499 

1, 275, 681, 579 

11 0, 120, 663 11 9, 831, 571 229,952, 234 

347, 854 

1 ' 202 ' 1869 ' 88

08 '0 ron 

19 l ' il 'L MG 

,_- 

g4561,1 F.1 5g 

FEM'AgWg1 

011 929' ' IEL

3,

82A, 375 

4,

583 262 

1 07, 1 97. 601 

523, 428 2,984,593 

87121 

v n Isno

6838 '096' Mt 

911 ' 39801

3, 600, 103, 700 35, 585, 584 

SI ' 820 633 '

1 9 ' 42 9 ' 68 WZ '2 ' 29L168 ' 4 ' 18

1 10' 0 296'

99 '4' 9£ 309'

MI5 

igttiRMI 

as 

c.,,I, •, W5 

RA . g 

NZ ' 9996' 14

4, 1 01, 622 

3, 927 623 

129, 073, 830 

381, 243 3, 498, 21 6 

OR SI R 

AMC 

969$ ' 3EL1' 91

1 31 1' 3 '6 9 80

1 60' 4611

I ' %SI8 £'4 ' 11 9

1, 159, 521, 811 ! 2,715, 664 1, 483, 366, 979 

466 993'

9 420n ' 90Z

it:gRrq

Riq3EggrOg -11 Ma, ,, 

_ 

,1 84 ' 90L ' Z98

3, 1 62, 682 

3, 036 554 

1 05, 887, 317 

 726, 321 I 2, 11 8, 776 

n9 itt 

Sources of revenue 

7orporation incomeand profits taxes individual incomeand employment taxes: Income taxnot withheld (Includingself-employment tax) 

Withheld taxes: 

Incomeand old-age insurance Railroad re tirement 

Total withheld taxes 

Unemployment insurance 

Total individual incomeand employment taxes 

eliscellaneousinternal revenue: 

Estate tax Gift tax Alcohol taxes: 

Distilled spirits(imported,excise) Distilled spirits (domestic,excise) Distilled spiritsrectification tax Wines,cordials,etc.(imported,excise) Wines,cordials,etc.(domestic,excise) Rectifiers; liquor dealers;manufacturersof stills(special taxes) Stamps for distilled spirits intended forexport Casestamps for distilled spirits bottled in bond Containerstamps 

•

Floor taxes 

•

Fermented malt liquors Brewers; dealersInmalt liquors(special taxes) 

Total alcohol taxes 

Tobacco taxes: 

Cigars(large) Cigars (small) Cigarettes(large) Cigarettes(small) Snuff Tobacco(chewingand smoking) rioarAttananarsand fishes 

02 .

seeag44ew-zee 

EEE3513EREEE 

28,1gS.18 

,47folo:eeer. 

ItURREggi. 

 ' --04g

kcli5ggitga 

'4Tacleeae .

RgEgrEgag 

xEMERFEN 

ozcibreaeeeee 

Walggint44

EFFigHEEFEFRE

e 

S

r

g

IE

A

E

8 esz ' 099 '

££ 896' 3 ' 90

44FigaU1121H4g5§ER 

ggW04451411 W4:1 

21 811 0 118 

6 ' NJ ' I £39 

£ 2 6 ' '31 066

Magagelig4 gti 

§g4EgggEggEHERITM 

g4 

r:Miagig g'S4 

157

078

571 

131 9981

C 981 /911

ga4gAan gHUU 

Iggasli5gg gr r 

'AA'tlg -A- 

.4 .4- 91 1 109

981

, '2 112 618 I 

'08 , 112 ' 811

5ggi glgaUW5 fl 

WEREWOIMEMPH 

0 

4.1.1-Wg gt6ai 

.-7 .: 

156

658

444 

'61 '886 031IL 162 al '

g5gliggilglg gal 1

PARR4EFARMaslirg 

.6 

'egg"`g-rsi 

_7 

NT 

£11 

018

as £98 ' I 

'cc e n (ge

ggaggItIggIgg 

RaRgIERVORnMgnEf 

mg gg 

1:1 951 2I11

A 

1 a 

t 

( avg

.08 g 

a4 

2—g : 

: Plla I P 

2 f i 8 .5j0 i 

IT 4 

1 25 

2 

I _..)., r8 ., g g z 7) 

cl 8 .- V IO I g 

v. 

g g , 811411.141Cei ER

um 2g.0 . 

.i

.wg.-52 A54 ❑ 

1 

i '2 4 .g 2 123P"g i

*

t.=4 '0'g 

I, g Naa 2ith-gg0 4 iggl - 

F g g iliabill°11141111:1 g 

T33 07,E.4 .1.4646(t 

A 

160 REPORT OF COMMISSIONER OF INTERNAL REVENUE , STATISTICA

"-a 

O 

C 

0 

e> 

ti 

E 

0 

el 

Ca 

1. 

3261 

u ur G

$108 

-97, 817 

148, 154, 767 

3,755, 603 

1,606, 785 

485, 344 

18, 636 

9981 ' L96

, I,MagE41§i444§HAUR 

qggg4E16gt-Litigg5Ag „:Th.,.4w:f ,,:woi- .4-asA" 

k 

fr/I'Wf', '683 889 ' TOO

2, 324,264 

1 5, 054, 147 

7, 826, 145 

6 144

3'1 ' 191

62$ 3

134, 464, 828 

309 

691 969'

930 7 £ 12

8 ' 866 ' 299

11 61 ' 9 ' 261

Haig-aeliii§aR§F!'lg 

(Mdggiggil5MOW 

207, 075, 207 

3, 089, 485 

15, 906, 955 

7, 741, 927 

1/ 1€1 ❑

62 9811

69 1311

£ 26' 8

89 3 69£ '

1 98' 0 608'

'8 a L 01' 0

2 61' 1 2 ' 93

atlE4gigniEnHM145 

.sAtalgIngqigtiVgg5 

ts 4'4 

Z 0 811 / LW

3,664,482 

15, 321, 852 

6,680, 957 

n o mor

2 001 998'

331 ' 289191 '

3, 182, 962 

1, 847, 809 

745,537 

7, 460 

2 1 881 01' , 8

ma 1.411WIWgreagan 

RilEAUHragIMEAfi: 

I GM ' 1'63 Li! 

4, 935, 959 

13, 884, 330 4, 671, 950 

ed q 1.76nr

991 ' Ent

3$ 

31 661 9291

2,749, 021 2, 144, 297 

779, 167 

1, 368 

9 ' 921 ' £98

cd

EinlgUEggVgild aFg - c4-4Qi-rg.4-ofec.gg.4.6c4-i4gsgrg 

,SPW.:-.2.tflgSm,r2,.R. 

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8, 325, 358 

37, 628, 213 

14, 102, 456 

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3, 97 5, 77 5 1, 990,955 

743, 576 

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8, 487, 106 

27, 1 66, 439 10, 130, 522 

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164 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 6 -Summary of internal revenue receipts by principal sources, fiscal years 

1916 through 1952 

STATISTICAL TABLES 165 

TABLE 6.-Summary of internal revenue receipts by principal sources, fiscal years 

1916 through 1952-Continued 

1916 

1917 

1918 

1919 

1920 

1921 

1922 

1923 

1924 

1925 

1928 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

1916 

1917 

1918 

1919 

1920 

1921 

1922 

1923 

1921 

192 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

Year 

Year 

Alcohol taxes 

$247, 453, 544 

284,008, 513 

443, 839, 545 

483,050,854 

139, 871,150 

82,623,929 

45,609,936 

30, 358,086 

27, 585, 708 

25,904,775 

26,452,029 

21, 195, 552 

15, 307, 796 

12,776,728 

11,695, 268 

10,432,064 

8, 703, 963 

43, 174, 317 

258, 011, 3334 

 411,021,772 

505,469,037 

594,245,086 

567,978, 602 

587, 799, 701 

624, 253,156 

820, 056,178 

1,048, 516, 707 

1, 423,646, 456 

1,618, 775, 156 

Individual income and employment taxes' 

845, 426, 352 

879, 12A, 407 

911,939,911 

882, 727, 114 

1,095, 541, 172 

1, 146, 844, 784 

833, 647,798 

427,190, 582 

352, 573,620 

419, 509, 488 

527, 112, 506 

674, 464,353 

1,367,486,054 

2,028,972, 108 

1,769, 262, 662 

1,815, 538, 352 

2, 343, 511, 587 

4, 448, 162,234 

8,128,637,023 

19,999,377,847 

20,813,400, 787 

20,405, 363, 840 

21,387, 662,091 

23, 379, 123,052 

20, 527,934, 679 

19,797,882, 768 

26, 624, 787, 948 

33, 738, 370, 243 

$67, 943, 595 

180, 108, 340 

Income, profits and employment taxes 

Tobacco taxes 

$88,063,948 

103, 201, 592 

156,188, 660 

206,003,092 

295,809, 355 

255, 219, 385 

270, 759,384 

309, 015,493 

325,638, 931 

395, 247, 211 

370, 666,439 

876,170,205 

396,450,041 

434,444, 543 

450, 339,061 

444, 276,503 

398,578,619 

402, 739,059 

425,168,897 

459, 178, 625 

501, 165, 728 

652, 254,145 

568, 181,968 

580,159, 206 

608, 518, 444 

698,076, 891 

780,982, 216 

923, 857,284 

988, 483,237 

Corporation income and profits 

taxes 

916, 232, 697 

1,094, 979, 734 

1, 308, 012, 533 

1,291,845,989 

1, 235,733, 256 

1, 263, 414, 466 

1,026, 392,899 

629,566,115 

394,217,784 

400, 146, 487 

578, 678, 359 

753, 031,620 

1,088,101,089 

1,342,717,850 

1, 156,280, 509 

1, 147, 591, 931 

2,053,468, 804 

4, 744, 083,154 

9,668,956,103 

14,766,798,477 

16,027, 212, 826 

12, 553, 601, 987 

9, 676,458,680 

10, 174,409,834 

11, 553,669, 234 

10,82, 351, 109 

14, 387, 569,403 

21, 486, 910,019 

Manufacturers' 

excise taxes 

$56,993,658 

207, 274,004 

$4,218,979 

775,078 

36,636,807 

79,400,266 

267,968, 579 

229,307,837 

174,361, 288 

185, 117,058 

200, 921,721 

140,877,326 

150, 220,488 

66,850, 109 

51,951,894 

5,723, 791 

2, 676, 261 

149,744 

98,195 

243, 600,368 

385, 291,214 

342,144,686 

382,716, 142 

449,853, 630 

416, 753, 516 

396, 891,003 

447,087,632 

617,373,372 

771,902, 259 

504,746,434 

503,461,802 

Total income, 

profits and employment taxes 

$124, 937, 253 

387,382,344 

2,852,324,866 

2, 600, 783, 903 

3, 956,936,004 

3,228, 137,674 

2,086,918,465 

1, 691, 089, 535 

1,841,759,317 

1,761,659,049 

1,974, 104, 141 

2, 219, 952, 444 

2, 174,573,103 

2,331,274,428 

2,410, 269, 230 

1,880,040, 497 

1,056, 756,697 

746,791,404 

819,655,955 

1, 105, 790, 865 

1, 427, 995, 873 

2, 445, 587,143 

3,371,689,957 

2,925, 543, 170 

2,963, 130, 283 

4, 396, 980, 391 

9, 192, 245, 387 

17,797, 593,125 

34,766,174,324 

36,840, 703, 613 

32,958, 965, 827 

31,044, 120,771 

33, 553, 532,885 

32,081,603,913 

30,652, 233, 877 

41,012, 357, 351 

55.215, 280, 262 

All other taxes 

162 513, 263 

398,881, 981 

643, 359, 601 

645, 935, 477 

480, 383,664 

279,459,849 

297, 306,818 

201, 512,011 

195, 340,420 

81,174,968 

92, 165, 670 

92, 937,744 

100,406,288 

65,251,619 

46,171,256 

149,224,352 

670,073,432 

769, 187, 665 

324, 527,086 

305, 707,545 

317,287,205 

330,465,663 

337,391,665 

430, 563, 800 

821, 681,660 

1, 274,047, 519 

1, 733, 655, 377 

$48, 049, 564 

27,949, 538 

Total internal 

revenue receipts 

Estate and 

gift taxes 

$512, 723, 288 

809, 393, 640 

3, 698,955,821 

3, 850,150,079 

5, 407, 580, 252 

4, 595, 357,062 

3,197, 951,083 

2,621, 745, 228 

2, 796, 179, 267 

2, 584, 140,268 

2,835,999, 892 

2, 865, 683, 130 

2,790,535,538 

2,939,054,376 

3,090, 145, 733 

2,42, 228, 754 

1, 557, 729,043 

1, 619, 839,224 

2,672,239,195 

3, 299,435, 572 

3,520,208,381 

4,653, 195, 315 

5,658, 765, 314 

5, 181, 573,953 

5, 340,452,347 

7,370,108,378 

13,047,868, 518 

22,371,386,497 

40,121,760, 233 

$6,076,575 

47,952, 880 

82, 029,983 

103,635, 563 

154,043, 260 

139, 418, 846 

126,705,207 

102, 966, 762 

108, 939, 896 

119, 216,375 

100, 339,852 

60,087,284 

61, 897, 141 

64, 769,625 

48,078,327 

47,422, 313 

34, 309, 724 

113, 138, 364 

212,111,959 

378,839, 515 

305, 547, 766 

416,874,065 

360, 715,210 

360,071,167 

407,057,797 

432, 590, 238 

447,495, 678 

511, 210,337 

643,055,077 

676,832,302 

779, 291,074 

899, 345,444 

796, 537,914 

706,226, 538 

729, 729, &37 

833,146, 988 

Year Alcohol taxes Tobacco taxes Manufacturers' 

excise taxes 4 All other taxes Total internal 

revenue receipts 

1945 $2, 309, 865, 790 $932,144,822 $782, 510, 640 $2, 292, 107,635 $43, 800, 387, 576 

1946 2, 526, 164,686 1,165, 519, 283 922, 670, 741 2, 921, 944,159 40, 672, 096, 998 

1947 2, 474,762,398 1,237,768, 302 1,425, 269, 662 2, 147, 183, 534 39, 108, 385,742 

1948 2, 255, 326, 754 1,300, 280, 153 1, 649,234,053 2, 206, 82,007 41,864,542,295 

1999 2, 210, 607, 168 1, 321, 874, 770 1, 771,532,723 2, 280,968, 532 40,463,125,010 

1950 2, 219, 202,085 1, 328, 464,346 1, 836,053,455 2,214,951, 467 38,957, 13L 768 

1951 2, 546, 807, 925 1, 380, 396,001 2, 383,676, 598 2,392, 718, 504 50,495, 686,315 

1952 4 2, 549, 119,689 1, 565,162,382 2, 348,943, 116 2, 507,933, 123 65,009, 585, 560 

•Beginning January 951, withheld income taxes and social security employment taxes on employees and 

employers are paid into the Treasury in combined amounts without separation as to type of tax. The 

figures for prior periods have been combined accordingly in this table for purposes of comparison, but are 

shown separately in previous annual reports. 

Separate figures on corporation and individual Income and excess profits tax collections not available 

for the years 1918 to 1921. 

3 Includes munitions manufacturers' tax, excess profits on Army and Navy contracts. 

For 1916 through 1932 includes taxes on sales under Act of Oct. 22, 1914; manufacturers', consumers' 

and dealers' excise taxes under the war revenue and subsequent acts (except soft drink taxes), and all taxes 

paid by manufacturers of and dealers in adulterated and process or renovated butter, mixed flour, and 

filled cheese. For 1933 and subsequent years includes manufacturers' excise taxes (Act of 1932, as amended) 

except soft drinks. 

4 Revised to include adjustments made subsequent to issuance of press release dated October 3, 1952. 

TABLE 7.-Internal revenue tax on manufactured products from Puerto Rico, fiscal 

years 1951 and 1952, by objects of taxation 

Articles taxed 1951 1952 Increase or 

decrease(-) 

Distilled spirits, excise tax $13,042,774 $14,389, 540 $1,346,766 

Distilled spirits, floor tax 

Distilled spirits, rectification tax 439,957 436,090 -3,867 

Wines 

Fermented malt liquors 

Cigars, large: 

Class A 40 1 -39 

Class B 150 212 62 

Class C 134 218 84 

Class D 435 208 -227 

Class E 2,202 2,012 -190 

Class P 4,317 3,682 -635 

Class G 655 585 -70 

Cigars, small 79 79 

Cigarettes, small 634 890 256 

Total 13,491, 298 14,'833,517 1,342, 219 

Non.-Stamp sales for Puerto Rican tobacco and liquor manufacturer are deposited at San Yuan to the 

credit of the treasurer of Puerto Rico and consequently are not shown in other collection statements herein 

except that liquor and tobacco taxes amounting to $32,111 in 1952 and $736 in 1951 were collected at the ports 

of entry and were covered into the Treasury of the United States to the credit of the treasurer of Puerto 

Rico, under the Act of Mar. 2, 1917 (sec. 3360, Internal Revenue Code). 

See footnotes at end of table. 
ADDITIONAL ASSESSMENTS RESULTING FROM AUDIT 

BY INTERNAL REVENUE ACIENTS 

TABLES 8-9 
168 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 8.-Additional income and profits tax assessments on the Commissioner's 

and collectors' lists made during the fiscal year 1952, by tax years 

(Excludes additional assessments resulting from collectors' examinations] 

(a) TOTAL REGULAR AND JEOPARDY ASSESSMENTS 

Tax year Items Tax Interest Penalty Total

. 

Income 

Excess 

and profits tax: 1 

925 and prior 

926 971 

928 

929 

930 

931 

932 

933 

934 

935 

936 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

948 

949 

950 

951 

952 

Total 

profits tax: 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

Total 

Grand total 

."..""Nr4 An' m agRERgE in- ,434 v,, si qd 

, 

$20, 995 

10,702 

11, 742 

13,347 

14, 927 

27, 551 

16, 933 

24, 390 

177,906 

214,488 

281,189 

472, 629 

643,087 

597,678 

2,075, 820 

3, 937, 765 

18, 268, 374 

30, 539, 240 

55,381, 984 

64, 435,530 

68, 501,695 

81, 827,231 

99,806, 845 

150,451, 726 

167, 907, 398 

56,341, 800 

1, 243, 632 

222 

$31, 613 

18, 196 

16, 602 

18, 071 

19,308 

25, 791 

17, 847 

25, 971 

188,332 

211,046 

262,543 

412, 784 

517,487 

413,326 

1, 404,817 

2,323, 057 

5,652,027 

11,552, 565 

21,560, 647 

22,352,694 

71, 863, 699 

22, 006,088 

20,870,583 

23,091, 765 

16.819,268 

3, 205,341 

17, 248 

$8,384 

7, 968 

8, 752 

8, 909 

11,196 

10, 624 

9, 890 

14, 206 

91,777 

109,825 

155,546 

262, 939 

310,973 

273,173 

191, 742 

368,102 

775, 060 

2, 691, 739 

8,114, 475 

12, 701, 019 

15,178, 975 

15,625, 729 

11,085, 293 

7, 650.957 

6, 619,186 

4,629, 569 

24, 278 

$60, 992 

36,866 

37, 096 

40,327 

45, 430 

63, 916 

44, 670 

69,567 

458,015 

535,359 

699,278 

1, 148, 352 

1,471,047 

I, 284, 177 

3,672, 379 

6. 628,924 

24,895, 461 

44, 783, 544 

85, 057, 006 

99, 489, 243 

105,342,319 

119,359, 048 

131, 762, 721 

181, 194,448 

191,345,852 

64,176, 710 

1, 285, 158 

$ . 222 

338,161 803, 246, 826 174,898, 516 86,837, 785 1,064, 783,127 

42 

139 

419 

747 

852 

I, 052 

263 

542,025 

2,389,904 

38, 989, 407 

33, 078, 583 

32, 542.694 

33, 281.141 

1, 725,301 

499,343 

1, 889, 572 

11, 742, 706 

14,573.953 

13, 259, 917 

11,355, 010 

530, 894 

19, 327 

134,858 

620,462 

2.040, 703 

2, 842,316 

1, 989, 598 

124, 219 

1,061,695 

4,414,334 

49,352, 575 

49, 693, 239 

48, 444, 927 

46, 625, 749 

2,380, 414 

3,514 140, 550, 055 53, 851,395 7, 571, 483 201,972,933 

341, 675 943, 796, 881 228,549, 911 94, 409, 268 1, 266,756, 060 

(5) TOTAL REGULAR ASSESSMENTS 

Income and profits tax: 1 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1923 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

..... 

50 

5 

4 

4 

1 

24 

5 

8 

8 

14 

19 

49 

65 

95 

117 

452 

1.173 

],648 

3,611 

5, 204 

7, 194 

13, 454 

22, STA 

77,511 pi., non 

$18, 955 

541 

509 

641 

238 

14, 299 

2,225 

3.532 

80,126 

120, 749 

165,948 

296,335 

471, 269 

392,041 

1, 908, 893 

3, 637, 190 

18, 007, 629 

27, 742. 978 

47, 987,107 

52, 081, 505 

53,311, 707 

64, 904,452 

86, 610,093 

140, 152, 848 

1 K7 100 lea 

$28, 484 

3, 218 

719 

868 

308 

9, 389 

638 

2, 816 

82,520 

117, 721 

152,271 

253,484 

372,680 

250, 937 

1, 283, 846 

2,130, 636 

5, 501, 948 

10, 106,159 

18,142.353 

17.542, 021 

16, 428,887 

17,142, 333 

17, 872, 558 

21,330, 853 

is Ann 055 

$6, 854 

348 

328 

380 

178 

685 

1,201 

1,939 

40,343 

60, 322 

82,831 

146,326 

199, 262 

127,736 

104, 919 

225,406 

658, 499 

1,643, 463 

4, 403,520 

6,658, NM 

7,363, 972 

6, 461, 024 

5, 473, 929 

3,536, 927 

2.277.152 

$54, 293 

4,107 

1, 551 

1,888 

729 

24,372 

4,06: 

8,261 

202,981 

298, 79: 

101.055 

896,141 

1, 043, 211 

770, 71 , 

 3, 297, 651 

5, 993, 23: 

24,168,071 

39, 492,601 

70, 532, 981 

76, 282, 13 

77,104, 561 

88, 507, 80 

109, 958, 581 

 165, 020, 62 175.021.83 

See footnote at end of table. 

STATISTICAL TABLES 169 

TABLE 8.-Additional income and profits tax assessments on he Commissioner's and 

collectors' lists made during the fiscal year 1952, by tax years-Continued 

(5) TOTAL REGULAR ASSESSMENTS-Continued 

Tax year Items Tax Interest ' Penalty Total 

Income and profits tax 1-Continued 

1950 81,063 $50,165, 609 $2, 836, 285 $2, 071, 997 $55, 073,371 

1951 364 622,021 15.341 8,847 646,209 

1952 1 222 222 

Total 331, 987 705, 893, 406 147, 210, 234 41, 606, 493 894, 01 0, 183 

Excess profits tax: 

1940 41 537,113 995,467 19,327 1,051, 907 

1941 137 2, 379, 634 1,883, 687 134, 016 4, 397,337 

1942 411 36, 878, 903 11, 581, 539 619, 571 48, 880, 013 

1943 727 32,3111123 13, 743, 546 1, 874,086 47, 927, 755 

1944 821 31, 484, 856 12, 833, 072 2,316, 807 46, 634, 735 

1945 1, 027 32, 374, 250 11, 038, 575 I, 547, 445 44, 960, 270 19413 252 1, 621, 476 499, 280 77, 557 2,198, 313 

Total 3, 418 137, 386.355 52, 075, 166 6, 588,809 196, 050.330 

Grand total 335.403 843, 279, 761 199, 285, 400 49, 096, 302 1, 090, 660, 483 

(a) ASSESSMENTS ON AGREEMENT WITHOUT 90-DAY LETTER 

Income and profits tax: 1 

1915 and prior 50 $18, 955 $28, 484 $6. 854 $54. 293 

1926 5 541 3, 218 348 4,107 

1927 4 509 719 328 1,556 

1928 4 641 868 380 1,889 

1929 1 238 308 178 724 

1930 6 6, 706 974 319 7, 999 

1931 3 500 588 326 1,419 

1932 5 1,645 1,768 1,070 4,483 

1933 4 2, 476 2, 052 1, 419 5, 947 

1934 8 5, 034 4, 438 2, 506 11, 978 

1935 13 24,054 22,220 12.085 58,359 

1936 36 79,705 68,426 38,676 186,807 

1937 46 195,923 155, 380 62,043 413,346 

1938 74 219, 460 123,349 48, 632 391, 441 

1939 92 1,804,846 1. 212,301 89, 878 3,107, 025 

1940 373 3, 357, 086 1, 986, 510 193,017 5, 516, 5M 

1941 972 18, 664, 844 4,809, 813 467, 805 21.942, 462 

1942 I, 350 25, 810, 750 9, 228, 969 1,130, 960 36,170, 679 

1943 2, 816 40, 493, 833 14, 809, 661 3, 000, 275 58,303, 769 

1944 4, 045 41, 547, 875 13, 932, 553 4, 384,122 59,364, 550 

1945 5, 680 42, 897, 773 12, 892, 862 6, 190,384 60, 981,019 

1946 11, 708 52.338, 550 13, 570, 917 4, 839, 905 70, 749.372 

1947 20.527 75, 525, 598 15, 416, 962 4, 484.698 95, 427, 258 

1948 74, 676 133, 845, 667 20, 272, 805 3, 258, 056 157. 378. 528 

1949 135,309 153, 851, 978 15, 222, 083 2.070, 244 171,195,305 

1950 60, 837 49, 898, 551 2, 819,198 2, 042, 490 54, 760, 239 

1951 363 621,948 15,339 8,847 646,134 

1952 1 222 222 

Total 319,008 639, 215, 888 126,083, 765 31,335, 845 796, 635. 498 

Excess profits tax: 

1940 28 - 347, 460 377, 913 11, 393 736, 766 

1941 95 I, 750,302 1, 544, 910 77, 743 3,372. 955 

1942 299 33, 535, 666 10,100,153 412, 427 44,048, 246 

1943 527 26, 703,154 11,341 065 1,251,048 39, 296, 267 

1944 644 26, 091 083 10, 734, 029 1,435,378 38, 261, 490 

1945 809 27, 686, 987 9, 429,378 1, 015. 010 38,131,375 

1946 214 1, 266, 998 382, 454 38,608 1,688,060 

Total 2, 618 117,382, 650 43, 910,902 4,241, 607 105, 535,159 

Grand total 321,624 756,598,538 169, 994, 667 35,577, 452 962,170,657 

See footnote at end of table. 
170 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 8.-Additional income and profits tax assessments on the Commissioner's and 

collectors' lists made during the fiscal year 1952, by tax years-Continued 

(5) ASSESSMENTS ON AGREEMENT AND 11EFAULT AFTER ISSUANCE OF 90-DAY 

LETTER 

Tax year Items 'Pax Interest Penalty Total 

Income and profits tax: I 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 1 $1,226 $1,229 $621 $3,076 

1935 1 4, 866 4,686 2, 433 11, 885 

1936 4 6,914 6, 092 3, 449 16.455 

1937 6 731 403 288 1, 512 

1938 11 10.203 7, 781 2,326 29,310 

1939 9 18,856 13,315 4,803 36,974 

1940 42 114,223 71.920 19,772 205.915 

1941 88 571,549 281.271 141, 669 994,489 

1942 122 817,868 283,137 188.354 1,067.359 

1943 281 2, 828, 893 I, 277, 230 693, 947 4, 800, 070 

1944 416 4, 305, 716 1, 705,805 1, 367, 010 7,378,331 

1945 615 4, 803, 935 1, 638, 949 1, 553, 688 7, 996, 472 

1946 871 8.333, 475 2, 359, 537 1, 289.536 11. 982,548 

1947 1.461 8, 374.618 1, 844, 205 691.917 10, 910, 740 

1948 2.312 5, 474, 328 921, 47828234 4,696 6, 830, 902 

1949 1,561 3, 207, 785 360,179 149,577 3, 717, 541 

1950 219 264, 535 16, 922 28, 216 309.873 

1951 

1952 

Total 8,040 38, 939, 721 10, 793, 929 6,350,102 56, 083. 752 

Excess nrofits tax: 

940 61,445 38,937 7,934 108318 

941 199,888 112,384 52,705 364. 977 

041 

A 

964,163 468,183 153,426 1, 583, 772 

943 1,355, 295 587,465 251,057 2,193,817 

944 2, 244. 895 892, 772 567, 531 3, 695,198 

045 1, 922.372 658, 986 383, 794 2, 965,152 

946 170,448 61.131 18,127 249,706 

Total 273 6, 908, 506 2, 817, 858 1, 434, 574 11,160, 938 

Grand total 8, 313 45, 848, 227 13, 611, 787 7, 784, 676 67, 244, 690 

(e) ASSESSMENTS BASED UPON STIPULATION BEFORE THE TAX COURT 

Income and profits tax: I 

- $562 

1,725 

1, 887 

^a, 650 

114, 489 

137, 028 

209, 716 

271,841 

159,237 

81, 887 

55,174 

256.733 

892, 76,7 

3. 226, 907 

4,411, 290 

3, 793, 433 

2, 871, 927 

1, 922, 897 

721, 128 84 rnil 

1925 and prior 

1926 

1927 

1928 

1929 

1930 $337 $366 $1, 28P 

1Q11 48 875 2,64E 

1932 1, 048 869 3.804 

UM BO, 468 3P.924 197,045 

193 112 054 57.195 284, 735 

18415 125,465 68, 313 330.801 

15416 178, 968 104, 201 492, 88: 

1917 214.664 135, 541 622,041 

1938 117, 563 75, 206 352,00( 

1919 66.193 8. 708 148, 7711 

1940 29.947 10, 416 95, 53' 

1941 125, 551 42,665 424,941 

1942 396, 507 239, 232 1, 567, 501 

1943 1, 399. 408 615,574 5, 140, 781 

1944 1, 657, 861 752.276 6,821, 421 

1945 1, 288, 493 480,605 6, 650, 53' 

1046 831.773 243.124 3, 946, 82 

1947 438,175 133, 436 2, 494.59 

1948 

...., 

118,031 

11 Al4 

21,627 

4. 792 

860,78 

97. 43 

See footnote at end of table. 

STATISTICAL TABLES 171 

TABLE 8.-Additional income and profits tax assessments on the Commissioner's 

and collectors' lists made during the fiscal year 1952, by tax years-Continued 

(s) ASSESSMENTS BASED UPON STIPULATION BEFORE THE TAX COURT-Continued 

Tax year Items Tax Interest Penalty Total 

Income and profits tax I-Continued 

1950 $1,467 $110 $176 $1,753 

1951 73 2 75 

1952 

Total 3, 323 19, 270, 952 7,181, 082 2, 933, 111 29, 435,145 

Excess profits tax: 

1940 12,831 8,189 21, 020 

1941 218,159 133,511 3,568 355, 238 

1942 1, 553, 316 715,284 50,117 2,318, 717 

1943 3,325, 961 1,367,407 256,993 4, 949. 861 

1944 2,196, 267 820.881 242, 922 3, 260, 070 

1945 1,798,393 630,335 121,571 2, 550, 299 

1946 21,173 8, 987 3, 180 31,320 

Total 318 9. 125, 600 3,682, 574 678,351 13, 486, 525 

Grand total- 3,641 28,396, 552 10,883, 656 3,661, 462 42, 921, 670 

(I) ASSESSMENTS MADE AFTER DECISION BY THE TAX COURT 

Income and profits tax: I 

1925 and prior 

'""413 nE

WS' 

1926 

1927 

1928 

1929 

1930 $7,031 $8,078 $15,109 

1931 

1932 

1933 

1934 

1935 

1936 

1937 2,774 2.143 $1.390 6,307 

1938 3,141 2, 214 1, 572 6,957 

1939 3, 304 2, 037 1, 530 6, 871 

1940 110,727 62 259 2,201 175,187 

1941 514,503 285,313 6,360 806,178 

1942 431,593 197.546 57,917 687,058 

1943 I, 437, 574 657, 054 193, 724 2, 288,352 

1944 1, 816, 624 746, 002 155,197 2, 717, 823 

1945 1, 826, 566 610,583 139,395 2,676,544 

1946 1,360, 500 380,106 88,459 1,829,085 

1947 786,980 173,216 163.878 1,124,074 

1948 111,725 18,539 22,648 152,912 

1949 52 747 6,303 Z 649 61,599 

1950 a 1,056 35 615 1,708 

1951 

1952 _____________________________________________________ 

___ _____________ 

Total 1,616 8, 466, 845 3,151,458 837,435 12, 455, 738 

Excess profits tax: 

1940 5 115,377 70,428 185,805 

1941 13 211,285 92,882 304,167 

1942 41 625,758 299.919 3,601 929,278 

1943 40 926. 213 446, 609 114, 988 1, 487, 810 

1944. 39 961,611 385. 390 70,976 1,417,977 

1945 55 986,498 319,876 27,070 1,313, 444 

1946 16 162, 857 4% 728 17, 642 229,227 

Total 209 3, 969, 599 1, 663, 832 234, 277 5,867, 708 

Grand total 1,825 12, 436, 444 4, 815, 290 1, 071, 712 18, 323, 448 

See footnote at end of table. 
STATISTICAL TABLES 173 

• 

TABLE 8.-

Additional income and profits tax assessments on the Commissioner's and 

collectors' lists made during the fiscal year 1952, by tax years-Continued 

(4) JEOPARDY ASSESSMENTS UNDER BANKRUPTCY AND DISSOLUTION 

PROCEDURE-Continued 

Tax year I tego s Tax Interest' - Penalty Total' " 

163 $1, 119, 753 $113, 893 $57,089 

141 720, 790 44, 611 71, 748 

12 103, 179 1,199 4, 769 

611 8, 047, 753 I, 748, 596 517, 937 

1 5,912 3,876 

1 6,901 3, 902 

4 124, 677 63, 644 

6 334, 924 633, 247 

7 303,395 123,365 30,289 

6 274, 829 102, 288 106, 718 

4 39,948 11, 234 8,850 

29 1, 090, 586 941, 556 145, 857 

640 9, 138, 339 2, 890, 152 663,794 

$1, 290, 735 

837,140 

109,147 

10, 314, 286 

9, 788 

'10, 803 

188,321 

968,171 

417, 049 

483, 835 

60,032 

2, 177, 990 

13,492,285 

Income and profits tax I-Continued 

1949 

1950 

1951 

1952 

Total 

Excess profits tax: 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

Total 

Grand total 

(1) FRAUD JEOPARDY ASSESSMENTS 

1 $2, 040 $3,129 $1, 530 $6, 699 

2 10,161 14, 978 7, 620 32, 759 

2 11, 233 15, 883 8, 424 35, 640 

2 12, 706 17, 203 8, 529 38, 438 

2 14, 689 19,000 11,017 44,706 

2 13, 252 16, 352 9,939 39,543 

6 14,708 17,211 8,689 40,808 

6 20,858 23,155 12,267 56,280 

8 97, 780 105, 812 51, 434 255,026 

9 93, 739 93, 325 49, 503 236,567 

11 115, 241 110, 272 72, 715 298,228 

14 176, 294 159,309 116, 613 452, 207 

17 171, 818 144,807 111, 211 427,836 ' 

18 215,637 162, 389 145,437 513,463 

20 166, 927 121,971 88,823 374,721 

34 289, 869 185, 402 142, 696 617, 967 

57 259, 663 149, 495 116, 423 525, 581 

194 2, 062, 643 1, 075, 075 I, 048, 019 4, 185, 737 

207 6,527,203 3,119, 284 3, 674, 226 13,320, 713 

440 11, 652, 119 4, 742, 256 5, 994, 910 22, 389, 285 

620 14, 713, 710 5, 072, 806 7, 746. 649 27, 533, 165 

785 

77 16, 287, 2 4, 681, 188 8, 97 717 29, 945, 467 0 56 

11, 531, 418 2, 662, 638 5, 524,

6, 

 110 19, 718,166 

843 9, 286, 665 1, 598,190 4, 055,923 14, 940, 778 

762 9, 593, 899 1, 104, 392 4, 334, 945 15, 033, 236 

620 5, 455, 401 324, 465 2, 486, 324 8, 266,190 

21 518,432 708 10, 662 529, 802 

5, 563 89, 305.667 25, 739, 686 44, 813, 355 159, 858, 708 

1 3, 389 1, 983 842 6,194 

4 185,827 97,523 891 284,241 

14 433, 536 197,160 166, 617 797, 313 

24 754, 443 303, 480 295, 220 I, 353, 143 

19 632, 062 214, 147 335, 435 1, 181, 644 

7 63,877 20,380 37, 812 122, 069 

69 2, 073.114 834, 873 836, 817 3, 744, 604 

5, 632 91, 378, 781 26, 574, 359 45, 650, 172 163, 603, 312 

Income and profits tax: I 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

Total 

Excess profits tax: 

1940 

194 1 

1942 

1943 

1944 

1945 

1946 

Total 

Grand total 

I Includes corporation tax under the Excess P ofits 'Pax Act of 1950. 

172 

TABLE S.-

Additional income and profits tax assessments on the Commissioner's and 

collectors' lists made during the fiscal year 1952, by tax years-Continued 

(g) TOTAL JEOPARDY ASSESSMENTS 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Income and profits tax: 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1936 

. 1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1948 

1947 

1948 

1949 

1960 

1951 

1952 

Total 

Excess profits tax: 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

Total 

Grand total 

Income and profits tax: 

1925 and prior 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

See footnote at end of table. 

$2,040 $3,129 $1,530 $6,699 

10,161 14, 978 7, 620 32, 759 

11, 233 15, 883 8, 424 35, 540 

12, 706 17, 203 8, 529 38, 438 

14, 689 19, 000 11, 017 44, 706 

13, 252 16.352 9, 939 39, 543 

14,708 17, 211 8,689 40,008 

20, 858 23,155 12, 267 56,280 

97,780 105, 812 51,434 255, 026 

93, 739 93,325 49, 503 236, 567 

1 115.241 110, 272 72, 715 298, 228 

1 176, 294 159, 300 116, 613 452,937 

1 171, 818 144. 807 111, 211 427, 836 

1 205,637 162,389 145,437 513,463 

20 166, 927 120,971 86, 823 374, 721 

35 300, 575 192, 421 142, 696 635, 692 

61 260,745 150,079 116,561 527, 385 

198 2, 796, 262 1, 446, 406 1, 048,276 5, 290, 944 

313 7, 394, 877 3, 418, 194 3, 710, 955 14, 524, 026 

461 12, 354, 025 4, 810, 673 6, 042, 414 23, 207,112 

642 15,189, 988 5, 234,762 7, 813, 003 28, 237, 753 

799 16, 922, 779 4, 863, 755 9, 064, 705 30, 851, 239 

837 13, 196, 752 2, 998, 025 5, 11, 364 21, 306, 141 

989 10, 298,880 1, 760, 912 4, 1

6

14, 030 16,113, 822 

925 10, 713, 652 1, 218, 285 4, 392,034 16, 323, 971 

761 6, 176, 191 369, 076 2, 558, 072 9, 103, 339 

33 621, 611 1, 907 15, 431 638, 949 

97, 353, 420 27, 488, 282 45, 331, 292 170, 172, 994 

1 5,912 3, 876 9,788 

2 10,270 5,885 842 16,997 

8 310,504 161,167 891 472,562 

20 768, 460 830, 407 166, 617 1, 765, 484 

31 1, 057, 838 426,845 325,509 1, 810, 192 

25 906, 891 316, 435 442, 153 1, 665, 479 

11 103,825 31, 614 46,662 182, 101 

176, 095, 597 

Tax year Items Tax Interest Penalty Total 

6,272 100, 517, 120 29, 264, 611 46, 313, 966 

(4) JEOPARDY ASSESSMENTS UNDER BANKRUPTCY AND DISSOLUTION PROCEDURE 

1 $10,706 $7, 019 $17, 725 

4 1, 082 584 $138 1, 804 

4 733, 619 371,331 257 1,105, 207 

16 867, 674 298, 910 36, 729 1, 203, 313 

21 701, 906 68,417 47, 504 817, 827 

22 476, 278 161, 956 66, 354 704, 588 

29 635, 217 182, 567 87, 988 905, 772 

52 1, 665,334 335, 387 87, 254 2, 087,975 

146 1, 012, 215 162, 722 58, 107 1, 233, 044 
174 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 9.-Income and profits tax deficiencies appealed to the Tax Cour , fiscal year 

ended June SO, 1962 

Tax year. Returns 

involved Deficiency Penalty Total 

1930 and prior 

- " 8 R44*E F4§EUREgR§E2cE 

tintiti

Nti 

$76, 051 $2, 677 $78,728 

1931 9,156 4,700 13,856 

1932 13,721 8,805 20,526 

1933 103,921 12,093 116,014 

1934 170, 299 89,103 259, 402 

1935 217,805 73,725 291,530 

1936 215,963 69, 712 285, 875 

1937 648,245 93,399 741,644 

1938 701,447 67,964 769,411 

1939 1,027, 503 61, 416 1,088, 919 

1940 2,325,052 182,481 2, 507, 533 

1941_ 4, 354, 320 390,367 4, 744, 687 

1942 ' 

22, 705, 495 2,615, 500 26, 320, 995 

1943 55,701,023 6,005, 718 61, 706, 741 

1944 44, 295, 291 8, 214, 427 52, 509, 718 

1945 52, 418, 464 8,626,084 61, 044, 548 

1948 40, 003, 159 10,185,499 50, 188, 658 

1947 44, 495, 638 5,932,492 50, 428,130 

1948 31,020, 309 5,208,026 36,228,337 

1949 12, 554. 548 1, 893, 874 14, 448, 422 

1950 4,084, 371 1,396,490 5, 480, 861 

1951 569,827 75,793 645,620 

1952 144,399 144,399 

Year and amount undetermined 42,069 8, 797 50, 866 

Total 13,278 317,898,076 51,217,144 369, 115, 220 

ALCOHOL, DISTILLED SPIRITS, BEER, WINES, ETC. 

TABLES 10-93 
Pflt...14Ym Br.r. "”:1' t 1 '2 -1 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

.... ... 

2$s 

.4•2 

t1 

'" 31.177 .11"V 4B 8148 22' 2 "'N''B C4-2 

Reprocessors, 

rebottlers,etc., 

of speciallydenatured alco- hol articles 

"' - °!!-;2'cral2 58', "223p2't% n 5tr2,7"2 

.,...v..,, ..,” 

ncr 

Fran, 

t, 

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t20 

' P 

C 

- 

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53 "4" "4 ;in 

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Regis- tered distilleries 

Cl .. .. . 

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w- 

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ag 

fel fi 

;-4-SQ00Apwicn.4a.4,2ww4 

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22904 7-53 — —13 

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F183 .1nraR 

REPORT OF COMNIISMONER OF INT'ERNA'L REVENUE Fruit-flb vorconcen- trate plants 0 111 94

o 

ig 

• y-`Wen° e"

1 .14"44'W'SARt''S "-'-'A R 

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ag 

- k..0 • m .. m 

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. . 

Beverage dealers 

g 

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PREVPROAnEPREMPHIMP:1 M ag.:a aa -l4 e.,aaa-: gae ..7 .. g 

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Vinegarfactoriesusing 

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process 

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V .T ro 

PP 

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m 

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CC M .. 0 

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180 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE D.—Permits under sections 3070 through 3125, Internal Revenue Code, fiscal 

year 1952 

Industrial 

alcohol plants, 

bonded warehouses, and 

denaturing 

plants I 

Dealers in 

specially 

denatured 

alcohol 

Users of 

specially 

denatured 

alcohol 

Users of 

specially 

denatured 

rum 

usersof 

tax-free 

lohol 

Carriers of 

tax-free and 

specially 

denatured 

alcohol 

Total 

In effect July 1, 1951 

Issued 

Terminated 

Revoked 

Voluntarily surrendered 

Involuntarily surrendered._ 

Expired 5 

In effect June 30, 1952 

Renewals approved 

Amended 

103 

16 

21 

21 

98 

97 

60 

33 

10 

10 

10 

33 

30 

3 

4,284 

313 

371 

3 

264 

7 

97 

4, 226 

3, 967 

1, 325 

Vi c° an e' 2:7 ;=1 

7, 592 

392 

325 

224 

92 

7, 659 

7, 295 

1, 051 

9 

457 

33 

34 

16 

18 

456 

437 

55 

12, 525 

766 

767 

3 

538 

16 

210 

12, 524 

11, 873 

2, 505 

Permits cover industrial alcohol plants, bonded warehouses, and denaturing plants either singly or in 

combinations. 

Represents permits terminated due to failure to file renewal applications, or to disapproval of renewal 

applications. 

Nov5.—For permits by States, see table 10. 

TABLE 12.— Permits under the Federal Alcohol Administration Act, fiscal year 1952 

Distillers 

Warehousing 

and 

bottling 

Rectifiers 

Wine producers 

and 

blenders 

Wine 

blenders 

Importers Wholesalers Total 

In effect July 1, 1951 358 402 

Mi na"- 

77 1, 287 14, 598 17, 686 

Issued 37 46 19 157 1,893 2,223 

Terminated 65 76 17 161 2, 378 2, 804 

Revoked 2 13 15 

Annulled 1 3 4 

Voluntarily surrendered 23 47 15 113 1, 402 1, 063 

Automatically terminated 42 29 

0 

2 46 960 1,122 

In effect June 30, 1952 330 372 79 1, 283 14, 113 17, 105 

Amended 26 77 14 116 1, 148 1, 487 

Suspended 3 4 

Reinstated after suseension 4 5 

In suspension June 30, 1952 

STATISTICAL TABLES 181 

TABLE 13.— Permits under the Federal Alcohol Administration Act, by States, 

as of June 0 1952 

State Dintillers 

Warehousing 

and 

bottling 

RectiHers 

Winn producers 

and 

blenders 

Wine 

blenders 

Importers 

Wholesalers Total 

Alabama 1 88 

"ERM"NnTnERFAMENWP4 ME

gaRni"grO

LVar 

N a 

Alaska 27 

Arizona 94 

Arkansas 27 120 

California 57 363 1, 187 

Colorado 1 2 101 

Conneetlut 9 2 97 

Delaware 23 

District of Columbia 34 

Florida 2 183 

Georgia 2 107 

Hawaii 4 60 

Idaho 1 95 

Illinois 15 5 1,132 

Indiana 15 283 

Iowa 1 8 231 

Kansas 207 

Kentucky 98 2 236 

Louisiana 4 4 162 

Maine 2 73 

Maryland 25 3 178 

Massachusetts 15 4 177 

Michigan 3 12 454 

Minnesota 1 930 

Mississippi 81 

Missouri 6 5 

:4 

316 

Montana 75 

Nebraska 1 120 

Nevada 52 

New Hampshire 33 

New Jersey 13 22 325 

New Mexico 1 12 62 

New York 35 75 968 

North Carolina 7 186 

North Dakota 76 

Ohio 8 72 989 

Oklahoma 132 

Oregon 1 12 132 

Pennsylvania 37 6 2,273 

Puerto Rico 13 11 485 

Rhode Island 39 

South Carolina 3 76 

South Dakota 99 

Tennessee 1 179 

Texas 7 696 

Utah 59 

Vermont 32 

Virginia 4 7 175 

Washington 1 15 172 

West Virginia 157 

Wisconsin 5 1 773 

Wyoming 72 

Total 330 372 241 687 79 1,283 19,113 17,105 

DEF NITIONB 

Gallon: A "gallon" or "wine ga Ion" is a United States gallon of liquid measure 

equivalent to the volume of 231 cubic inches. 

Proof: "Proof" is the ethyl alcohol content of a liquid at 60 °F., stated as twice 

the percent of ethyl alcohol by volume. 

Proof gallon: A "proof gallon" is the alcoholic equivalent of a United States 

gallon at 60° F., containing 50 percent of ethyl alcohol by volume. 

Tax gallon: A "tax gallon" for spirits of 100 proof or over is equivalent to the 

proof gallon. For spirits of less than 100 proof the "tax gallon" is equivalent 

to the wine gallon. 

Barrel: A "barrel" represents 31 wine gallons. 

Half-pint: The "half-pint unit" is the taxable unit for reporting sparkling 

wines and certain cordials and liqueurs. The tax is payable on each one-half 

pint or fraction thereof in each bottle or other container. 

100-grain gallon: A wine gallon of vinegar which contains 10 percent acetic 

acid by weight is equivalent to one "100-grain gallon." In a wine gallon of 

vinegar which contains more or less than 10 percent acetic acid by weight, the 

number of "100-grain gallons" is proportionately greater or smaller than one. 

The "100-grain gallon" is equivalent to the "10-percent gallon." 

• 
182 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

H. 47NDENATURED ETHYL ALCOHOL 

[Relates to ethyl alcohol produced by Industrial alcohol plants) 

TABLE 14.-Materials: I Used at industrial alcohol plants in production of ethyl 

alcohol, by kinds and by months, fiscal year 1952 

Grain and grain products 

Month 

Other 

Pounds 

July 

August 

September 

October 

November 

December 

UMW] 

Rental? 

March 

April 

May 

June 

Total 

Month Ethylene 

dad Molasses Ethyl 

sulphate 

Sulph to 

liquo s 

Products 

used in redistillation 

Other materials 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total ...... 

Pounds 

7, 788, 526 

7, 275187 

6,327,152 

7,095 931 

5, 828, 440 

6 961, 987 , 

7, 115, 986 

7, 368,382 

7, 161. 670 

5 055, 189 

71, 400 

1, 649, 391 

Gallons 

12.902, 833 

17, 427, 473 

16, 482, 552 

15, 285 988 

15, 899. 015 

12. 857, 111 

1Z 908, 532 

5 873, 070 

16,989,699 5 

0, 054. 598 

9, 511, 803 

15 660, 917 

Gallons 

14 690, 980 

13, 856, 988 

13, 351,123 

15.499, 539 

15 964, 985 

13, 902, 962 

15, 315, 957 

14,704,560 

15 407, 310 

13, 773, 772 

11, 222, 878 

17 375 955 

Gallons 

20,0* 900 

21,775, 600 

19, 490, 900 

21,647,300 

21,042, 300 

18, 830, 000 

25 848, 000 

27 775 000 

24, 075, 200 

23, 235 100 

24, 265, 700 

15,838,500 

Proof 

gallons 

1, 89,183 

4, 282,163 

5, 025, 221 

3, OK 201 

663,8 

1, 541. 177 

995 300 

1, 227, 760 

734, 830 

I, 174, 320 

 1.035,778 1.035, 

851, 288 

Gallons 

5 385 819 7, 553,811 4,144, 296 

2,487 507 

4,888.927 

7, 147. 752 

5 473, 581 

7.315,559 

5 804,824 

690 

3, 019. 642 

9, 695 485 

Pounds 

269, 458 283,991 

236, 875 

197155 

172,817 

176. 798 

162. 364 

115 831 

126,538 

128,852 

247, 538 

194,944 

65 409, 741 158,8,354,091 168, 020, 007 254, 882, MO 27200, 754 2 88, 359,893 1 7 312, 159 

I For those plants in which ethyl alcohol s a byproduct of the butyl process, only the estimated amounts 

of material allocable to ethyl a robot have been included. 

Includes 1,566, 60 pounds o corn meal. 

Includes 30,818,015 pounds of a wheat byproduct and 22,010,610 pounds of wheat flour. 

Represents 84,432,333 pounds of mixed grain, 615,140 pounds of rice, and 186,244 pounds of rye, 

6Represents 23,432,371 gallons of whey, 17,005,156 gallons of petroleum products, 7,498,201 gallons of p

apple juice, 6,461,674 gallons of wood sugar Utmos t 6,837,070 gallons of enzyme extract, 2,559,357 gallons of 

cellulose pulp and chemical mixtures, 1,868,050 gallons of yeast beer, 1,258,180 gallons of citrus press lulus 

' concentrate, 918,576 gallons of crude alcohols mixtures, 845,801 gallons of apple pectin residue, 489,490 gallons 

of citrus waste concentrate, 184,448 gallons of corn sugar sirup, 15,834 gallons of wood sugar molasses, and 

5,685 gallons of grape material. Represents 2,189,330 pounds of whey, 75,000 pounds of dextrose, 47,045 pounds of dried skim milk, and 

784 pounds of enzyme extract, 

Nora.-In addition to the materials reported above, the following were used at industrial alcohol plants 

in the production of products other than ethyl alcohol: 71,081,264 pounds of corn, 10,173,692 pounds of sorghum grain, 1,241,148 pounds of wheat, 346,830 pounds of rye, 2,181 pounds of malt (a total of 82,844,915 

pounds of grain and grain products), 1,858,767 pounds of soybean meal and distiller's solubles, 12,614 pounds 

of enryme extract, 14,000 pounds of copra meal, 3,400 pounds of cotton seed meal, 8,476,915 gallons of whey, 

2,517,683 gallons of molasses, 102,289 gallons of grain sirup, 47,561 gallons of alcohol and acetone mixture, 

and 5934 gallons of corn sugar byproduct. 

STATISTICAL TABLES 183 

TABLE 15.-Materials:' Used at industrial alcohol plants in production of ethyl 

alcohol, by kinds and by States, fiscal year 1952 

State 

Grain and grain products 

Corn Malt Wheat S mghaill grain Other Total 

Pounds Pounds Pounds Pounds Pounds Pounds 

California 

Florida 

Hawaii 

Illinois 5,076,639 1,336 50,037 117,233 26,050 5, 271, 296 

Indiana 39,098, 755 3, 984, 780 158,040 43, 241.676 

Iowa 105,0438,045 11, 856, 414 26, 562, 847 143, 4* 806 

Kansas 1, 560, 540 3, 652,770 24, 560,110 6,237,445 6, 620,370 42 471, 236 

Kentucky 

Louisiana 

Maryland 8,679,000 710,758 2,914,350 7, 204, 108 

Massachusetts 

Michigan 3, 351, 725 30,818,915 34, 170,640 

Missouri_ 5 470,642 11, 809, 392 85 344, 608 89,764,592 144,389, 234 

Nebraska 106, 525,852 23,490,064 81,280 139, 419, 205 15178, 825 288,695,206 

New Jersey 

New York 

Ohio 12,342, 880 1,881,102 9,250,416 23, 474, 288 

Oregon 

Pennsylvania 135,305 652 20,892, 261 15,009,394 150,017, 801 585,840 321,901, 948 

Puerto Rico 

Texas 

Utah 

Virginia 

Washington 

West Virginia 

Wisconsin 

Total 3414,938,805 80, 630,692 4 70,609, 716 420,883,405 3 65,233, 717 1,052, 276,385 

See footnotes at end of table. 

2 414, 938, 805 

Pounds 

15, 085, 929 

20, 414, 409 

22,166, 007 

17, 202, 688 

28, 867, 673 

23, 620,290 

59, 958, 669 

98, 823, 160 

51, 894, 252 

10, 875, 901 

28. 583,184 

37, 948, 643 

Corn 

Pounds 

3, 141, 002 

9, 658, 034 

8,044,241 

9,949, 822 

6,234,793 

6,220, 911 

7, 291, 464 

10,211, 764 

8,132, 256 

4 427, 212 

4,138, 911 

3, 680, 282 

89,639,692 

Malt 

Pounds 

1, 381, 377 

4,444,397 

17, 452, 600 

5, 572, 602 

3, 346, 611 

4, 872, 220 

4, 097, 048 

8,084, 826 

9,607, 927 

4, 501, 195 

7 98,8 

4, 840, 884 

70,609, 716 

Wheat 

425 863, 405 

Pounds 

15, 874, 569 

73, 640, 386 

38,288, 916 

52,374, 594 

28 642, 936 

60, 860, 212 

35, 398,155 

25, 429, 798 

39, 374,294 

35, 423, 219 

17, 120, 777 

537, 571 

Sorghum 

grain 

14, 954,853 

32, 938, 417 

17,'225,163 

315, 840 

275 000 

1,344 

85, 233. 717 

29,300 

810 

1, 0E2, 275 335 

Pounds 

35, 482, 877 

108,ON, 206 

98, 904,617 

117, 036, 123 

84,317,166 

95.889, 473 

106, 513,336 

142, 550, MA 

109,005 720 

55.227, 527 

52,285 202 

47,008, 190 

Total 
184 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 15.-Materials: 1 Used at industrial alcohol plants in production of ethyl 

alcohol, by kinds and by S ales, fiscal year 195Z-Continued 

State Molasses Ethyl 

sulphate 

Products 

used In redistillation Other materials 

California 

Florida 

Hawaii 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Missouri 

Nebraska 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Puerto Rico 

Texas 

Utah 

.Virginia 

Washington 

West Virginia 

Wisconsin 

Total 

Gallons 

77,174,235 

6,232,434 

460.482 

9, 369, 524 

30, 277, 454 

1, 752, 502 

28, 768, 971 

4, 299, 204 

13,785 

Canons 

10, 612, NO 

35, 286,007 

84, 568, 900 

37, 552, 200 

Proof odious 

55, 516 

1,032, 817 

11, 426, 596 

86,417 

4,350 

10,180 

1, 882, 867 

1,238.342 

6,068,221 

21, 349 

403,099 

Gallons 

& 495,175 

7115 

10 13, 182,420 

n 7, 644, 484 

n 17,005,156 

7 1,258,180 

77,498,201 

7294, 765 

a 2, 195,092 

A 1,868,050 

A 6, 477, 508 

9 5, 552,190 

17 2, 559.357 

9 254, 882,400 

17918, 576 

10 1, 420,644 

Pounds 

775,000 

0784 

1147,046 

10 2,189, 330 

A 60,499, 741 

158, 354, 091 168, 020, 007 22, 209, 754 323, 212, 293 71,811, 90D 

1 See footnote 1, table 14. 

Includes 1,566,460 pounds of corn meal. 

Includes 30,818,915 pounds of a wheat byproduct and 22,010,610 pounds of wheat flour. 

4 Represents 64,432,333 pounds of mixed grain, 615,140 pounds of rice, and 186,244 pounds of rye. 

• Represents 489,490 gallons of citrus waste concentrate and 5,685 gallons of grape material. 

Dextrose. 

7 Citrus press juice concentrate. 

Pineapple juice. 

Enzyme extract. 

Whey. 

n Dried skim milk. 

Is Represents 6,634,215 gallons of whey, 845,801 gallons of apple pectin residue, and 164,448 gallons of corn 

sugar sirup. 

99 Yeast beer. 

I4 Represents 6,461,674 gallons of wood sugar liquor and 15,834 gallons of wood sugar molasses. 

Petroleum products. , 

15 Ethylene gas. 

17 Cellulose pulp and chemical mixtures. 

as sulphite liquors. 

17Crude alcohols mixtures. 

Nora.-See note, table 14. 

STATISTICAL TABLES 185 

TABLE 16.-Materials: Used at industrial alcohol plants in the production of ethyl 

alcohol, by kinds, and quantities of ethyl alcohol produced therefrom, fiscal 

year 195R 

Kind of material 

Quantity used Ethyl alcoho produced 

Amount Unit Proof gallons of ercent 

Ptotal 

Ethyl sulphate 168, 020,007 Gallons 208, 595,268 42.81 

Mob sses 1 158, 269, 621 Gallons 128, 570,003 26.28 

Grain and grain products 9 1,052, 276.335 Pounds 89, 291,187 18. 23 

Ethylene gas 69.999, 791 Pounds 29, 982,948 6.12 

Products used in redistillation 22, 209.754 Proof gallons__ 21, 714, 661 4.43 

Sulphite liquors 254, 882,900 Gallons 5,817,252 1.19 

Cellulose pulp, chemical and crude alcohols 

mixtures: 

Cellulose pulp and chemical mixtures 2,559,357 Gallons 2,046, 228 .92 Crude alcohols mixtures 918,576 Gallons 

Whey 0 f 23, 432, 371 

1 2,189,330 

Gallons 

Pounds 1,023,003 .21 

Citrus press juice concentrate I, 258, 180 Gallons 769,301 .16 

Pineapplejuice 7,998, 201 Gallons 581,025 .12 

Petroleum products 17,005,156 Gallons 566,461 .11 

Citrus waste csucentrate 489, 490 Gallons 291, 259 .06 

Wood sugar liquor , 6,317, 099 Gallons 100,045 .02 

Yeast beer 1,868, 060 Gallons 83,580 .02 

Apple pectin residue 1 643, 075 Gallons 39, 534 .01 

Grape material 5, 685 Gallons 1,155 0) 

Other mixtures: 

Apple pectin residue 202, 728 Gallons 

Corn sugar sirup 169,498 Gallons 

Wood sugar liquor 144,625 Gallons 126,684 . es Molasses 84,470 Gallons 

Dextrose 75,000 Pounds 

Wood sugar molasses 15,834 Gallons 

Total 7 489, 599,474 100.00 

Additional amounts used in combination wi h other materials included unde "other mixtures." 

7 In addition 5,837,070 gallons and 784 pounds of enzyme extras were used in the production of ethyl alcohol 

from grain and grain products. 

In addition 47,045 pounds of dried skim milk were used in the production of ethyl alcohol from whey. 

Less than 0.01 percent. 

7Represents gross production. Net production-that is, the gross production minus products used In 

redistillation-was 467,389,720 proof gallons. 
STATISTICAL TABLES 187 

186 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

TABLE 17.-Summary: Production, withdrawals, and stocks of ethyl alcohol,' by 

months, fiscal year 1952 

(Proof gallons] 

Month Production 

Withdrawals 

Tax-paid 

Tax-free 

Used for denatmation 1 For use of the 

United States 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

35,997,062 

44,665,033 

40, 944,565 

47, 335, 886 

40, 477,497 

39, 825, 468 

42, 25,9,911 

42, 420, 688 

41, 128, 586 

33, 856,609 

26,062, 133 

32, 922, 282 

2, 232,910 

3, 032, 853 

3, 595,118 

3,016,437 

3, 178, 913 

2, 398, 654 

1, 992,958 

1, 788,300 

1, 860, 626 

1, 754, 794 

1,394, 984 

1,446, 672 

43, 654,861 

42, 608, 789 

39, 923, 966 

43, 361, 563 

45, 739,033 

42, 060, 716 

48, 916, 926 

44.935. 140 

40, 939, 433 

34,107, 686 

30, 538, 753 

33, 101, 965 

13,813, 628 

14,010,436 

10, 740, 383 

9,983, 432 

8,442, 834 

10.677,856 

6, 783,481 

6,088,945 

9, 373, 693 

9,054, 340 

9, 718,937 

7,850, 705 

5467,389,720 27, 693, 219 4 489, 788,831 116,636, 570 

Month 

Withdrawals-Continued 

Stocks end 

of month 

Tax-free-Continued 

For hospital, Grand total 

scientific, and 

educational 

use 

Other Total 

July 

August 

September 

October 

November 

December 

January 

Feb! tuiry 

March 

April 

May 

June 

Total 

221, 507 

194, 979 

173, 921 

202, 813 

207, 746 

163, 759 

188,547 

211,894 

178, 831 

199, 827 

210, 227 

182,083 

12, 822 

20, 299 

lb, 568 

13,621 

15,303 

18,982 

10, 147 

17, 242 

13, 327 

22, 681 

11,421 

14,229 

57, 702, 818 

56, 734, 503 

50, 853, 838 

53, 561, 419 

54,904, 915 

52, 921, 353 

56, 899, 101 

51, 251, 221 

50, 605, 184 

43,384, 534 

40, 479, 338 

41, 148, 982 

59.935, 728 

59, 767,356 

54, 448,950 

56, 577,856 

57, 583, 828 

55,320,1E7 

57, 892,069 

53,039, 521 

52, 365,910 

45. 139,328 

41, 874,322 

4%595, 654 

101, 248, 200 

107, 737,912 

101, 680, 728 

103, 927, 191 

91, 110,043 

89, 360, 601 

94,441, 657 

94, 665, 041 

95,361, 420 

97, 5E0, 276 

82,344, 081 

74, 420, 162 

2,336, 133 5 185, 642 008, 847, 206 636,540, 425 74, 420,162 

Represents production at industrial alcoho plants, withdrawals from industrial alcohol plants, industrial alcohol bonded warehouses, and denaturing plants, and stocks at industrial alcohol bonded warehouses and denaturing plants. Withdrawals and stocks include imported alcohol mingled with domestic 

alcohol. For withdrawals and stocks of imported alcohol, see table 20. 

1 Represents domestic ethyl alcohol, imported ethyl alcohol, and spirits produced by registered distilleries 

(redesignated upon receipt at denaturing plants as alcohol). 

8Includes 11,641,154 proof gallons transferred to registered distilleries and internal revenue bonded warehouses which could be withdrawn as spirits for either industrial or beverage purposes. 

4 In addition 1,763,529 proof gallons of rum (table 60) were used for denaturation at distillery denaturing 

bonded warehouses. 

Represents withdrawals from industrial alcohol bonded warehouses in United States of 39,162 proof 

gallons for export, 1,129 proof gallons for transfer to customs manufacturing bonded warehouses; and withdrawals in Puerto Rico of 71,167 proof gallons for beverage purposes, 63,323 proof gallons for medicinal use, 

10,261 proof gallons for export, and 600 proof gallons for industrial use. 

TABLE 18.-Summary: Production, withdrawals, losses, and stocks on hand June 80, 

of ethyl alcohol,' and premises operated, by States, fiscal year 1952 

(Proof gallons] 

State Production 

Withdrawals 

Tax-paid 

Tax-free 

Used for denatumtion 1 

For use of 

the United 

States 

For hospb 

tal, sciontine, and 

educational 

use 

Other 

California 

District of Columbia 

Florida 

Hawaii 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maryland 

Massachusetts__ 

Michigan 

Missouri 

Nebraska 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Puerto Rico 

Texas 

Utah 

Virginia 

Washington 

West Virginia 

Wisconsin_ 

Total 

4,853,199 

581,025 

327, 2'0 

18, 721,507 

3,546,00 

62, 404 

105, 778,155 

1, 252,993 

8,046, 127 

3, 928, 612 

12,076, 342 

23, 638, 402 

24,061,827 

1,489,003 

2, 252,660 

51,071, 981 

6,817, 252 

63,158,677 

769,301 

11, 671, 242 

113,211 

1, 714, 798 

129, 897, 524 

7,136 

1,626, 747 

27,324 

593,375 

1,640 

1, 921 7,416, 

334, 221 

31, 949 

3, 081, 264 

602, 026 

5, 513, 524 

288,091 

295,497 

124,987 

309 

4,336, 533 

82,349 

2,922, 903 

6,744 

24,745 

1, 036,141 

5,357, 412 

564, 974 

469,318 

11,519,836 

17,689,383 

102, 905, 520 

59, 645, 687 

8,383,650 

7,694,055 

913,447 

1, 741, 425 

47,082,116 

4,851,082 

49, 4M, 711 

107, 271, 141 

949 

3,044,021 

56, 315, 152 

651, 949 

75,856 

1,326,476 

71,568 

1, 331, 403 

1,500, 907 

27,324 

381,554 

103 

35,808 

4,817 

1,607 

1, 799, 433 

78, 645 

48,395 

1,564 

28,841 

31,965 

22, 721 

5, 658 

114,091,946 

1,212 

1,231 

44 

1,026 

166,873 

237, 050 

408,306 

79,399 

245,962 

6, 627 

4,022 

311, 879 

08, 054 

8,996 

216, 947 

183,056 

105,495 

114,161 

169,162 

580 

17,490 

2,074 

29 

216 

9,031 

6,156 

24,859 

145,351 

5467,389, 720 27,693, 219 4 489,788,861 116, 536, 570 2,336, 188 6 183,642 

See footnotes at end of table. 
Production 

Withdrawals 

Tax-paid 

Tax-free 

For denaturation 1 

For use of 

the United 

States 

Other 

165,103,582 

180,695, 920 

196,126,236 

223,181, 228 

201, 033,858 

201, 017,546 

243,727, 756 

298, 845, 417 

+ 421,804,091 

16,154, 614 

16,990, 972 

24, 052,532 

32, 289,650 

28,975,102 

22,1.50, 969 

21,344, 36 

27,883,52

0

3 

24,932,310 

137,41 1, 765 

163,009,786 

172, 478, 748 

179,324, 373 

164,253, 210 

175, 644, 641 

223, 321, 704 

274,887, 261 

374,7 0,259 

793,803 

852,115 

993,734 

1,011, 828 

960, 7 0 

1,057,712 

1,224,504 

3, 696,008 

93,319,325 

1,787, 340 

2,242,386 

2, 413, 785 

2, 534, 972 

2,687,9 

2,878,17

98

6 

2,930, 214 

3,055, 303 

3,013, 982 

447, 78 1, 568 5, 675, 341 408, 303, 779 103,124, 789 2,119,0E8 

636,575,216 6,178,698 973,439,553 122,397, 846 2, 310, 431 

a 683,431, 514 27,835,574 971, 441, 910 111, 210,119 2, 205,138 

329, 385, 962 97, 233,159 393, 458, 500 12,751,3 17 2,620,142 

248, 798, 639 47, 144, 016 338, 029,989 2,933,908 2, 611, 377 

332, 282,198 38, 754,397 301,101,1E8 284,447 3, 437, 774 

351,015,3 61 90,815, 714 321, 222,197 644,889 2,698,020 

313,535,129 40,564, 876 322, 681,322 581, 210 4, 237, 215 

444, 935.011 42, 824, 251 455, 999,873 35,178,191 2, 521, 229 

467,389,720 27, 693,219 489,788, 861 116,536,570 2, 521,775 

Losses in 

industrial 

alcohol 

bonded 

warehouses 

Industrial 

alcohol 

bonded 

warehouses 

Withd awaLs-Continued Number of premises 

operated 

Fiscal year ended 

June 30- 

Tax-free-Con. 

Total 

Grand total 

Stocks 

June 30' Industrial 

alcohol 

plants 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

139, 997, 908 

166,101, 787 

175,885, 2 '8 

182, 931,173 

167, 901, 959 

179,580, 529 

227, 476, 422 

281,638,572 

421,143,546 

513, 547, 656 

1,028, 177, 833 

1,084, 862,167 

308,830, 009 

343,581, 279 

304,825, 389 

324, 555,103 

327, 399, 747 

493, 699, 293 

608,847, 206 

156,152,522 

183, 095, 759 

199, 938, 800 

215, 220,823 

196, 878,568 

201, 731, 498 

251, 820, 728 

309,505,095 

946,075,886 

519,222,997 

1,104,356,531 

1,112,698, 741 

956,093,168 

370, 725,340 

343,583, 786 

365, 410,820 

367,964,623 

536,523,544 

636,540, 425 

490,854 

491,226 

438, 851 

528,194 

529,879 

496,086 

496,294 

697, 140 

824, 254 

2,007,409 

1,688, 524 

1, 378, 624 

1,133,305 

1,046,462 

897, 782 

1,018, 775 

935,133 

893,601 

899,058 

27,970, 640 

25, 252, 75 1 

21,300, 340 

28, 461,541 

32,016, 632 

30,860,351 

21,798, 554 

10,392,352 

29,014,265 

212,923,256 

127,919, 567 

143, 639, 094 

110, 538,987 

27, 016,234 

38, 273,358 

51,015,381 

23, 247,967 

99,684,133 

74,920,162 

34 

32 

35 

38 

36 

36 

37 

39 

46 

63 

66 

62 

48 

38 

47 

46 

88 

49 

45 

70 

74 

72 

73 

68 

63 

65 

62 

68 

111 

111 

90 

90 

74 

76 

76 

73 

77 

72 

Fiscal year ended June 30- 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1991 

1942 

1943 

1994 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

188 REPORT OF COMNLISSIONEB OF INTERNAL REVENUE 

TABLE 18.-Summary: Production, withdrawals, losses, and stocks on hand June 80, 

of ethyl alcohol, 1 and premises operated, by States, fiscal year 1952-Continued 

[Proof gallons] 

State 

Withdrawals-Con. 

Losses in 

industrial 

alcohol 

bonded 

warehouses 

Stocks 

June 30 

Number of premises 

operated a 

Tax-free-Con. 

Grand 

total 

Industrial 

alcohol 

plants 

Industrial 

bonded 

alcohol 

warehouses Total 

California 5,895,8'8 6,489, 243 22,881 366,603 

e _ < ~ wm~ro~. e ~ mN M H 

District of Columbia 551, 949 551,949 

Florida 565, 018 565, 018 2,241 11,642 

Hawaii 963, 443 465, 083 2,135 37, 979 

Illinois 11,867,523 13,284,444 64,853 2,169,2=3 

Indiana 17, 762,254 25, oas, 475 196,488 6,618,352 

Iowa 12,635 534, 589 

Kansas 75,356 107,305 225,571 

Kentucky 102,016, 123 105,997,387 5,870 11, 533, 970 

Louisiana 61, 682,386 62, 284, 412 39,610 2,133,922 

Maryland 8, 679, 242 14,192, 766 32,620 615,244 

Massachusetts 7,925,506 8,213,597 14,317 297,881 

Michigan 1,020,106 1,316,003 9,038 10,885 

Missouri 1, 884, 427 2,009,414 39,292 133,345 

Nebraska 1,326,475 1,326, 784 17,037 681,330 

New Jersey 47, 631,418 51,817,951 77, 475 7,213,603 

New York 4, 959, 358 5,041, 707 17,823 599,993 

Ohio 174,820 1,210,961 17,028 17, 709 

Oregon 71,568 71,558 1,173 

Pennsylvania 163,827,478 166, 750,381 253,847 36,831,254 

Puerto Rico 1,483,381 1,483,381 22,975 1, 246, 482 

Texas 107, 271, 721 107,271, 721 40,416 2, 273, 644 

Utah 1,975 1,975 5,161 

Virginia 1,500,107 1,500,107 

Washington 3,032, 723 3,0 9,4 7 3,697 65,639 

West Virginia 56,318,457 56, 343, 202 10,617 759,198 

Wisconsin_ 27,324 27,324 

Total 608,847, 206 636, 540,425 7 849,088 74, 420,162 45 72 

I Represents production at industrial alcohol plants, withdrawals from industrial a cobol plan s, industrial 

alcohol bonded warehouses, and denaturing plants, and stocks at industrial alcohol bonded warehouses 

and denaturing plants. Withdrawals and stocks include imported alcohol mingled with domestic alcohol. 

For withdrawals and stocks of imported alcohol, see table 21. 

See footnote 2, table 17. 

See footnote 3, table 17. 

4 Bee footnote 4, table 17. 

Bee footnote 5, table 17. 

I Represents number operated during any part of the year7 In addition, losses in denaturing plants amounted to 200,818 proof gallons. 

STATISTICAL TABLES 189 

TABLE I9.-Summary: Production, withdrawals, losses, and stocks on hand June 30, 

of ethyl alcohol, and premises operated, fiscal years 1934 to 1952, inclusive 

[Proof gallons] 

I Represents withdrawals for denaturation 1934 through 1941, and 1948 through 1910. For 942 through 

1947, 1951 and 1952 represents products used for denature ion, that is, domestic ethyl alcohol, imported ethyl 

aloohol, and spirits produced by registered distilleries (redesignated upon receipt at denaturing plants as 

alcohol}. During such years denaturing plants were permitted to store ethyl alcohol for purposes other than 

for denaturation. Accordingly, the quantity of ethyl alcohol used for denaturation is reported for such 

years in lieu of withdrawals for denaturation. ' 

2 Represents withdrawals for hospital, scientific and educational use, for export, and withdrawals in 

Puerto Rico for medicinal, beverage, export, and Industrial use. Beginning with 1947, includes transfers 

to customs manufacturing bonded warehouses. 

Represents gross production. Net production for such years-that Ls, the gross production minus prodnets used In redistillation-was 419,536,593 proof gallons for 1942, 339698,97) proof gallons for 1943, 590,929,095 

proof gallons for 1944, and 650,089,874 proof gallons for 1945- 

+ Exclusive of losses in denaturing plants. 

I Represents stocks in industrial alcohol bonded warehouses and for 1942 through 1952 Includes stocks at 

denaturing plants. 
190 REPORT OF 'COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 191 

M. UNDENATURED IMPORTED ETHYL ALCOHOL 

[Relates to ethyl alcohol imported tax-free for industrial purposes] 

TABLE•20.-Summary: Importations, withdrawals, and stocks at industrial alcohol 

bondechwarehouses, of imported ethyl alcohol, by months, fiscal year 1952 

[Proof gallons] 

Month 

Tax-free withdrawals from customs 

custody 

Tax-free w tbdrawals from Industrial alcohol plants and bonded 

warebou es I Stocks end 

of month 

at Industrial alcohol bonded warehousest 

For transfer 

to industrial 

alcohol plants 

and Industrial alc ohol bonded 

warehouses 

For transfor to d 

natant; 

plants 

Total im• 

portations 

For transter to denaturing 

plants 2 

For use 

of the 

United 

States 

For hospital, sdentitle, and 

educetional use 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

26,405, 420 

10,516, 859 

1,062,663 

10, 503, 544 

18,967,662 

05,086 

12,990,425 

11,194, 761 

10,381,220 

6,438, 336 

129, 385 

3,899, 270 

2,008,433 

1.845, 817 

2, 471, 620 

1, 551, 562 

6,901,624 

5, 467, 772 

12, 990, 425 

27, 413,863 

11,194,761 

12.362,676 

3, 534,283 

12,055,106 

25, 869,286 

10,381,220 

5, 562,857 

6,438,336 

129,385 

3,899, 270 

29, 190,474 

18,083,837 

13,701,386 

13,676, 252 

8 967,060 

7, 289,605 

7, 850, 354 

4, 839, 105 

7, 718, 338 

3, 430,934 

1,013,668 

968,688 

2, 847, 118 

10, 172,037 

12, 383,276 

15,605, 604 

2.976.707 

5,630, 779 

11,025, 598 

16, 567,138 

8, 937,918 

11, 932.856 

11,036,944 

13,955,946 

111, 684, 630 20.246,828 131, 831, 458 116, 629, 689 13, 955.946 

Represents imported alcohol not mingled with domesec alcohol. 

Imported alcohol received at denaturing plants either direct Boni customs custody or by transfer from 

an industrial alcohol plant or bonded warehouse is not separately reported after receipt. 

TABLE 21.-Summary: Importations, withdrawals, losses, and stocks at industrial 

alcohol bonded warehouses, of imported ethyl alcohol, by States, fiscal year 1952 

[Proof gallons] 

State 

Tax-free withdrawals from customs custody 

For transfer to 

industrial altohol plants and

industrial alcohol bonded 

warehouses 

For transfer to 

denat tno Total importslions 

Illinois 

Louisiana 

New Jersey 

New York 

Texas 

Total 

108, 367,038 

1,953, 405 

1, 264,187 

13,340,083 

8, 906, 745 

121, 707,121 

1,953,405 

1,264,187 

6.906, 745 

111, 584,630 20, 2M, 828 131, 831,458 

State 

Tax-free withdrawals from industrial alcohol 

plants and bonded warehouses i Losses at 

industrial 

alcohol 

bonded 

warehouses 2 

Stocks 

June 30 at 

industrial alcohol bonded 

ware] houses i 

For transfer to 

denaturing 

plants 2 

For use of the 

United States 

For hospital, 

scientific, and 

educational 

use 

Illinois 

Louisiana 

New Jersey 

New York 

Texas 

Total 

322,198 

111, 583,844 

3,255,977 

1,467,670 

103,399 

4,816 

969 

3,706 

13,926,061 

29, 885 

116, 629, 689 112, 890 13, 955, 946 

See footnote 1, table 20. 

'See footnote 2, table 20. 
192 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 22.-Summary: Importations, withdrawals, losses, and stocks at industrial 

alcohol bonded warehouses, of imported ethyl alcohol, fiscal years 1943 to 195t, 

inclusive 

!Proof gallons[ 

Fiscal year ended 

June 30- 

Tax-free withdrawals from customs custody 

Tax-free withdrawals from Industrial alcohol plants and bonded 

warehouses 1 

For transfer to 

industrial alcohol 

plants and Industrial alcohol 

bonded warehouses 

For transfer 

to denaturirm plants 5 

Total 

importations 

For transfer 

to denaturing plants a 

For use of 

the United 

States 

Other 3 

1043 1 

1944 

1945 

1946 a 

1947 a 

1948 

1949 

1950 

1951 

1952 

3.338, 635 

2,053,072 

45, it64, 198 

31, 800,940 

20,348.242 

30, 481, 068 

163, 248,135 

Ill, 584, 630 

4, 659, 807 

30, 485, 607 

31, 784,148 

15, 541,232 

11, 405.310 

2, 363.681 

635, 238 

37, 131,266 

20, 246,828 

32, 538, 679 

47. 342, 222 

31, 953, 552 

32, 844, 749 

635, 238 

200.379,401 

131, 831, 458 

a 9, 291, 332 

77. 648.344 

22, 474, 318 

34,865,994 

118,854,886 

5, 272, 716 

9, 861, 079 

960, 887 

116, 629.689 

3, 246 

55,274 

23, 506, 995 

39, 717 

83,864 

18,843 

48,690 

Fiscal year ended June 30- 

Imported alcohol 

mingled with 

domestic alcohol 

at industrial 

alcohol bonded 

warehouses 

Losses at Industrial alcohol 

bonded warehouses 1 

Stocks June 30 

at Industrial 

alcohol bonded 

warehouses 1 

1943 4 

1944 

1945 

1946 a 

1948 

1949 

1950 

1951 

1952 

81, 948 

14,843.393 

- - 6, 1884 279 

1,398, 598 

45, 864,196 

3,402 

49,478 

167, 377 

123.439 

278,483 

112,890 

25,013 

7, 829 

3, 233,570 

9, 232.132 

5, 988.57E 

970,575 

19,082,051 

13,955,901 

1 Represents imported alcohol not mingled with domestic alcohol Imported alcohol which has been 

mingled with domestic alcohol is included in table 19. 

Imported alcohol received at denaturing plants either direct from customs custody or by transfer from 

an industrial alcohol plant or bonded warehouse is not separately repor ed after receipt. 

Represents withdrawals for hospitals. scientific and educational use and for export. 

4 The importation of alcohol free of tax for industrial purposes was au horned, effective October 22, 1942, by 

the Revenue Act of 1942. 

a Includes 1,392,890 proof gallons withdrawn for use of the United States. 

Imported alcohol was transferred from denaturing plants to industrial alcohol bonded warehouses as 

follows: 2,198,301 proof gallons in 1948 and 7,854,735 proof gallons in 1947. 

STATISTICAL TABLES 193 

IV. DENATURED ALCOHOL 

[Relates to denatured alcohol produced by denaturing plants] 

TABLE 23.-Production: Ethyl alcohol used for denaturation and completely and 

specially denatured alcohol produced, by months, fiscal year 1952 

Month 

Ethyl alcohol 

used for denaturation 

Production 

Completely 

denatured 

alcohol 

Specially 

denatured 

alcohol 

Total 

Proof gallons Wine callow Wine gallons Wine gallons 

July 43, 654, 861 230,146 23, 118, 208 23, 348, 354 

August 42, 508, 789 133, 559 22, 623, 592 22, 757,151 

September_ 39, 923, 966 95, 059 21, 326, 086 21, 421, 145 

October 43, 361, 553 174, 901 23, 100, 685 23, 275, 586 

November 45, 739, 033 86, 809 24, 338, 477 24.425,288 

December 92, 060, 756 46, 054 22, 412, 242 22, 458, 298 

January 48, 916, 926 74, 980 26,033 991 26,105, 971 

February 44, 935,140 42, 097 24,017, 472 24, 059, 549 

March 40, 939, 433 46, 946 21.877, 277 21, 924. 223 

April 34,107, 686 15, 085 18,353. 148 18, 368, 231 

May 30, 538, 753 22, 263 16,459, 163 16, 481, 426 

June 33, 101, 965 26, 128 17,843, 119 17, 868, 247 

Total 489, 788, 861 993,027 281, WO, 458 262, 493, 485 

1 Represents domestic ethyl alcohol, imported ethyl alcohol, and spirits produced by registered distilleries (redesignated upon receipt at denaturing plants as alcohol). 

TABLE 24.-Withdrawals: Completely denatured alcohol, by formulas and by months, 

fiscal year 19,52 

[Wine gallons] 

Month 

Formula 1 

Total 

12 13 14 15 Special 

formula 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

11, 075 

13,609 

16, 001 

47, 830 

24, 519 

4, 119 

16, 974 

16,891 

5, 094 

1, 014 

7, 225 

9,728 

187, 528 

5, 608 

29, 603 

21, 617 

20, 832 

2, 846 

19,128 

1, 937 

862 

972. 

1, 608 

1, 209 

20, 695 

113. 436 

41, 318 

110, 763 

53, 195 

33, 983 

46, 318 

14, 993 

27, 575 

18, 301 

12, 378 

16,172 

5 

972 

219,303 

134, 653 

86, 920 

180, 210 

98, 546 

40, 948 

83, 390 

33, 821 

33, 531 

20, 290 

21, 211 

27,109 

176, 079 293,748 608, 128 5 972 z 979.932 

1 Information relative to the composition and authorized uses of these formulas will be found in the Ap• 

Pendia to Regulations No. 3, "Formulae to Completely and Specially Denatured Alcohol" (revised 1942), 

Treasury Department, Bureau of Internal Revenue, as amended by T. D. 5733. 

2 Experimental and governmental use. 

Includes 16,928 wine gallons withdrawn for use of the United States. 

196 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 27.-Summary: Ethyl alcohol used for denaturation, and production, withdrawals, stocks on hand June 30, and losses of denatured alcohol, and denaturing 

plants operated, by States, fiscal year 1952-Continued 

State 

Specially denatured alcohol 

Total losses 

Number of 

plants 

operated 5 Production Withdrawals Stocks 

Wine gallons Wine gallons Wine gallons Wine gallon 

C.... CP Ca .011C.. M ..e an ... CZ . 

California 3, 102, 098 3, 104, 081 17,980 5,234 

District of Columbia 568, 731 568, 068 663 

Florida 308,868 301,228 8,306 156 

Hawaii 244,164 243, 678 1,556 234 

Illinois 6, 917, 849 6, 910, 228 29,328 3,082 

Indiana 9, 393, 771 9, 364, 832 48, 662 31, 241 

Kansas 41, 768 3, 949 37, 818 1 

Kentucky 53, 846, 982 59, 917, 459 1, 793,145 38, 900 

Louisiana 31, 422, 084 29, 813, 395 2, 066, 691 17, 047 

Maryland 4, 405, 444 4. 332, 440 67, 885 9,819 

Massachusetts 4, 205, 7084,190,032 4,190, 26, 304 719 

Michigan 500,138 513, 459 38, 974 1, 760 

Missouri 1,131, 634 I, 124, 150 56, 898 1, 051 

Nebraska 730,410 726,560 400 

New Jersey 25, 318, 847 25, 392, 362 142, 493 28, 263 

New York 3, 346, 377 3, 340, 092 7, 810 809 

Oregon 39,417 36, 917 4, 676 , 81 

Pennsylvania 26, 214, 476 25. 105, 935 757,580 74, 116 

Puerto Rlco 718, 321 680, 228 52, 324 2, 136 

Texas 56,812, 354 56, 320, 374 2, 669, 915 7,327 

Utah 

Virginia 794,137 794.137 

Washington 1, 602, 929 1, 602, 929 

West Virginia 29, 833, 951 29, 646, 759 186,864 16,286 

Wisconsin 

Total 261, 500, 458 5254, 033, 241 8, 015, 009 240, 025 55 

I Represents domestic ethyl alcohol, imported ethyl alcohol, and spirits produced by registered distilleries 

(redesignated upon receipt at dena uring plants as alcohol). 

Includes 16,928 wine gallsns withdrawn for use of the United States. 

3 In addition to these stocks at denaturing plants, stocks held by bonded dealers are shown in table 28 and 

stocks held by bonded manufacturers are shown in table 29. 

Represents number operated during any part of the year. 

5 Includes 3,369,740 wine gallons withdrawn for use of the United States. 

TABLE 28.-Operations in specially denatured alcohol by bonded dealers: By States, 

fiscal year 1952 

[Wine gallons] 

State Received I Removed I Losses Stocks 

June 30 

Number of 

dealers 

operating 3 

Connecticut 21, 762 21, 560 3, 581 

11 

Illinois 4, 659.259 4, 499,146 4, 879 338,478 

Kentucky 31,983 29, 604 3, 929 

Maryland 27, 576 38, 637 24 5, 269 

Massachusetts 50,085 60,518 8 8,283 

Michigan 50, 327 52, 680 4 2, 587 

Minnesota 80, 885 72 252 2 11, 358 

Missouri 68, 805 66, 736 37 11, 628 

New Jersey 22,434, 016 22, 381, 021 3, 625 106, 664 

New York 2044 2 437 143 

Ohio 172, 691 170, 692 23 13.784 

Texas 28, 992 760 28, 949,122 24, 897 782 786 

Utah 2,617 3,152 816 

Washington 4.288 3, 558 3 2,466 

Total 54, 599,098 54, 351, 105 33, 502 1, 291, 770 

Excludes interdealer shipments. 

Represents number operating during any part of the year. 

STATISTICAL TABLES 197 

TABLE 29.-Operations in specially denatured alcohol by manufacturers: By States, 

fiscal year 1952 

[Wine gallons] 

State Received Recovered 

after use I 

Used in 

manateeturfing 

(including 

recovered 

alcohol) 

Losses Stocks 

June 30 

Number of 

manufac. 

tuners 

operating ' 

Alabama 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York • 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Puerto Rico 

Rhode Island 

South Carolina 

South Dakota 

Tennessee 

Texas 

Utah 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

74.328 

3, 201, 734 

604, 989 

95,097 

7,129, 443 

2, 474, 397 

1, 547, 104 

3, 041. 010 

3,457, 929 

3, 136,874 

179.395 

166, 683 

2, 629, 298 

22, 397, 579 

241 

3 8, 152, 938 

1, 569,147 

19, 897, 333 

70, 960 

24, 403.421 

28, 202, 868 

, 186 

9,475 

62, 942, 269 

394,318 

40 

139 

409;115 

33,033 

45,352 

584.977 

195,805 

8, 954 

69 

30, 779 

55, 615 

60,027, 708 

491 

60 

75, 135 

1, 365,067 

64,10{ 

598, 842 

10 

45,290 

352, 8553 

680, 225 

3,159 

35 

3,142 

471 417 

1, 965 

1, 516, 576 

2, 560 

81, 265 

1, 504, 331 

 8,767,685 8,767, 

11, 667, 850 

254, 100 

5, 670, 427 

559, 009 

58 

5, 781, 700 

3, 424, 799 

15, 943, 292 

1,320,807 

468, 466 

19, 002, 255 

1,082, 915 

279 

43,079 

2, 776, 744 

62,880 

12, 846, 310 

4,378 

78,756 

4, 762.268 

WA 644 

56, 845 

586, 678 

175, 109 

199.301 

8,716 119 

11,178, 741 

29, 027 

56, 248 

60,028,072 

13, 261, 013 

754 

3, 380, 984 

9,127. 742 

3, 840, 815 

182,161 

6, 955,042 

6, 060, 282 

1, 293, 813 

38, 338, 147 

9,09, 579 

609,822 

2, 098,196 

336, 693 

38, 997.990 

679.359 

1,130. 442 

25, 247, 395 

28, 229. 78.8 

3,445 

903 

3, 092, 400 

72,125 

71, 194, 162 

947,792 

38 

152 

418,575 

34, 504 

8, 991 

73 

64 

74, 909 

64, 894 

, 277 

17 

93,375 

3, 040 

38 

5 

1, 914 

500 

244 

131 

45 

275 

11, 935 

146 

45 

13 

7 

5 

1 

865 

4, 687 

7, 061 

14 

2 

4, 118 

29, 579 

16,490 

5 

14, 888 

2 

5,061 

19 

I, 701 

16,492 

3 

20 

13 

1 

1, 576, 240 

1, 107 

10,149 

15 

21,753 

239, 230 

12, 694 

32, 779 

4.395 

15, 304 

8,936 

7,627 

60 

11 

331,199 

248, 694 

4, 551 

3, 294 

9, 771 

19,936 

1. 791 

88. 270 

127, 669 

138, 864 

17. 393 

25, 288 

164.134 

6 

387 

108,006 

2, 593 

885, 704 

4 

470,517 

35, 194 

1 

136, 111 

8,848 

31. 842 

282,019 

1, 405 

10, 311 

868 

10 

1, 902, 898 

398,126 

231 

40 

 96, 211 

2,227 

8, 430,196 

19,263 

16 

2"`1R gr S tri:4 g 3 114 r 

ni cl grip; R11.1.111 .1 1112"-@ VA S'? 

Total 260,882, 447 92, 763, 730 350, 179, 599 1, 693.614 14, 331, 828 4, 054 

lin some Industries where the denatured alcohol does not become a part of the product, a portion is recovered and reused. 

Represents number operating during any part of the year. 

s Includes 81,522 wine gallons recovered from solutions received containing specially denatured alcohol. 
198 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE SO.-Summary: Ethyl alcohol used for denaturation, and production, withdrawals, receipts, quantities used, and stocks on hand June 30, of denatured alcohol, 

and premises operated, fiscal years 1934 to 1952, inclusive 

STATISTICAL TABLES 199 

V. DISTILLED SPIRITS: UNREC17FIED 

[Produced by registered and fruit distilleries] 

TABLE 3 1.-Materials: Used at registered distilleries in production of distilled spir 

by kinds and by months, fiscal year 1952 

Denaturing plants 

Proof 

gallons 

139, 681,129 

185, 233, 806 

174, 357, 295 

181,034,322 

165, 848.248 

177, 338, 688 

325, 160, 792 

276, 766, 363 

376, 624, 412 

408, 303, 779 

973, 439, 558 

971, 448, 910 

393, 458, 500 

338,029,989 

339, 851, 745 

321, 925, 930 

322,838, 727 

455, 999, 873 

489, 788, 861 

Ethyl 

alcohol 

used for 

denaturation 

Receipts 

Wine 

gallons 

4,184, 596 

3, 976, 293 

3, 682,183 

3, 997, 465 

3, 019, 005 

3, 243, 249 

3, 441, 108 

4, 053, 733 

9, 738, 837 

7, 590,158 

5,155, 405 

16, 177, 196 

18, 000, 320 

21, 241, 606 

20, 361, 336 

a 783, 315 

43, 725, 971 

80, 955,109 

M, 599, 098 

Bonded dealers 

Production 

Wine 

gallons 

27, 174, 311 

38, 746, 679 

36, 522, 358 

23, 118, 378 

25, 598, 717 

17,179, 433 

15, 352,033 

17, 676, 172 

28, 628, 181 

24, 369, 788 

52, 331, 761 

33, 087, 533 

26 144, 437 

395, 

34,887,789 

10, 221, 492 

4, 414, 058 

1, 438, 564 

993,027 

Specially denatured alcohol 

Completely denatured alcohol 

Stocks 

June 30 

Wine 

gallons 

492, 381 

MI, 240 

393, 542 

339, 789 

293;206 

378,009 

381, 855 

279, 383 

5, 801, 635 

9, 080, 979 

3,841, 185 

164,153 

190, 055 

295, 487 

180,057 

877,028 

972,437 

1,071, 839 

, 1 291 770 „

Wine 

gallons 

28, 443,067 

38,050, 525 

35, 700,192 

23, 484,104 

25, 727, 946 

17, 204, 615 

15, 495, 290 

17, 723, 882 

28, 958, 998 

24, 320, 681 

52, 210, 817 

32, 288, 945 

27, 118, 835 

36, 324, 125 

34, 748, 659 

10, 321, 778 

4,397,981 

1, 456, 480 

979, 932 

Withdrawals 

Wine 

gallons 

98,302 843 

99, 452, 531 

109, 525, 613 

139,054, 515 

127, 456, 902 

142, 969, 775 

177, 333, 764 

223, 745, 001 

325, 714,889 

395, 807, 595 

687, 731, 298 

761, 526, 288 

325, 206 701 

293, 281, 330 

278,083,935 

266, 174,133 

293, 245, 411 

351, 915, 212 

350, 179, 599 

Used 

Manufacturers 

Wine 

gallons 

748, 967 

1, 4s3, 844 

2, 250, 899 

857, 683 

699, 772 

655,996 

498,982 

438, 835 

94, 442 

143,208 

224, 133 

1, 013, 268 

45, 595 

102, 261 

226, 077 

105, 362 

85, 961 

47, 726 

40, 455 

Stocks 

June 30 

Stocks 

June 30 

Wine 

gallons 

2, 837, 211 

Z 760,802 

2, 771,921 

a. 309, 088 

Z 708, 739 

3, 162, 641 

s, 974, 138 

8, 217, 469 

7, 927, 892 

18, 874,162 

12, 118, 670 

10, 975, 875 

9,097, 977 

8.361, 845 

8, 347, 893 

13, 979, 713 

8, 427, 429 

12 939, 023 

14, 331,828 

Wine 

gallons 

65, 067, 092 

58, 284, 395 

64, 955, 486 

80, 084, 281 

69,009,024 

83,561,077 

III, 409, 797 

135, 834, 201 

179, 217,163 

198, 524, 631 

471, 781, 825 

494, 008,004 

186, 657, 873 

147, 348, 371 

149, 394, 037 

164, 273, 211 

170, 259, 583 

243, 998, 614 

261, 500, 458 

Production 

Specially denatured alcohol 

Number 

of denaturing 

plants 

operated 

Wine 

gallons 

54, 734, 827 

58, 833, 468 

64,819, 485 

79, 881, 876 

69, 253, 258 

82, 866 014 

III, 509, 432 

136, 319, 810 

177, 058, 630 

193, 977,658 

465, 909, 511 

491, 445, 833 

197, 554, 311 

154, 927, 752 

150, 359, 372 

158, 389, 294 

176, 804, 418 

237,192, 954 

264,033, 291 

41 

39 

37 

46 

43 

88 

40 

43 

62 

76 

88 

65 

50 

49 

48 

47 

46 

48 

55 

Withdrawals 

Number 

of dealers 

operating 

70 

71 

67 

67 

64 

56 

52 

51 

53 

50 

38 

36 

39 

39 

42 

37 

35 

36 

34 

Stocks 

June 30 

Wine 

gallons 

777, 674 

368,743 

465, 724 

799, 458 

491, 852 

1, 325, 563 

1, 163, 

830, 474

490 

 2,721,991 

7,181,323 

18, 154, 806 

20, 823, 245 

8, 919, 858 

1, 878, 777 

846,682 

8,640, 586 

2,012, 789 

8.747.342 

8,015,009 

Number 

of manufacturers 

operating 

4.686 

4,279 

3,889 

4, 323 

4, 321 

4, 405 

4, 283 

4, 30L) 

4, 213 

4, 031 

4,019 

4,061 

4, 239 

4, 288 

4, 206 

4,153 

4,176 

4, 128 

4.054 

Month 

Grain and grain products 

Corn Rye Malt Wheat Sorghum 

grain 

Pounds Pounds Pounds Pounds Pounds 

Jul? 106, 940,988 21, 781, 136 21, 044, 287 1, 851, 000 41, 794,192 

August 86. 658, 680 17,858. 852 18, 135.802 1, 557, 700 36.012, 808 

September 92.190. 557 19. 727.619 19, 788.705 5.801, 720 21, 587,714 

October 106, 591, 517 27.708, 358 21, 899, 280 6.652.038 30. 051,291 

November 113, 906, 210 22.946, 843 21. 924,824 7, 904, 56423,158,977 23,158, 

December 114.817.349 20, 906.018 19,130,076 7, 886,193 11,990,406 

January 108, 661,144 23. 961,039 18.860, 221 11, 290.290 11, 829,006 

February 112, 328, 858 20,053. 832 17, 606. 784 1, 402, 471 11, 634.072 

March 113. 788, 084 18,165, 531 17, 409. 463 524.160 11, 482,044 

April 102. 563. 331 18. 219, 531 15. 818. 100 479.305 9. 723, 155 

May 87. 212, 619 14, 265.322 13.051.107 241,920 5, M8, 452 

June 86. 793, 894 9.501.022 9, 347, 607 183,680 3, 817.438 

Total 31,209, 433,179 235,095, 095 214, 018, 256 1 45, 775, 941 217, 429, 503 

Grain and gram productsMonth 

Continued 

Molasses 

Products 

used in re- Other madistillation terials 

Mixed grain Total 

Pounds Pounds Gallons Proof gallons Pounds 

July 123, 412, 431 206,164 1. 418, 781 33,830 

August 6. 918, 068 168,169.910 228.214 1, 634, 534 36.640 

September 24, 634. 209 183, 730, 524 208.972 1, 594.374 35, 668 

October 3, 068, 696 195. 971. 178 245, 614 1, 579.863 36.069 

November 1,218,000 191. 059. 418 265.525 1, 955,692 29.792 

December 174, 730, 042 170, 858 1, 095, 490 26.953 

January 172.201,694 186, 348 778.464 22.762 

February let 026,017 174.964 714.431 17,835 

March 161, 349, 282 211,698 1, 133, 266 23,351 

April 146, 803, 412 178, 892 1, 377,198 10,189 

May 120, 319,420 171,824 1,434, 404 21,008 

June 88,443, 039 199,038 1,160, 206 17,006 

Total 35, 888,973 1, 957, 616, 947 42,447, 111 15, 876,893 1 318„093 

I Whisky, rum, gin, vodka, and spirits. For materials used at fruit distilleries in production of brandy 

and spirits-frait, see table 33. 

Includes 853,700 pounds of corn meal. 

8Includes 16,229,911 pounds of wheat Hour. 

Used in production of rum. 

Represents 329,897 pounds of diamalt, 83,223 pounds of malt sirup, and 3,023 pounds of enzyme extract. 

Fiscal year 

ended 

June 30- 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

1941 

1942 

1943 

1944 

1946 

1946 

1947 

1948 

1949 

1950. _ 

1951___.. 

1952 

Fiscal year 

ended 

June 30-- 

934 

935 

937 

938 

939 

940 

941 

942 

943 

944 

945 

946 

947 

948 

49 

50 

51 

52 

For 1934 through 1941 represents wit/ideas/4s of all products for denaturation, that is, domestic ethyl 

alcohol, spirits produced by registered distiller es (redesignated upon receipt at denaturing plants as alcohol), 

and rum. For 1942 represents all products used for denaturation, that is, domestic thyl alcohol, spirits, 

and rum. For 1943 through 19 2 represents all products (except rum) used for denature ion, that is, domestic 

ethyl alcohol, imported ethyl a cohol, and spirits. Rum is included for 1934 through 1942 because denatured 

rum is included with specially denatured alcohol for those years. 

Prior to fiscal year 1943, ins udes denatured nun. 

Excludes interdealer shipments. 

Includes recovered alcohol. 
200 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 32.-Materials: Used at registered distilleries in production of distilled spirits,' 

by kinds and by States, fiscal year 1952 

Grain and grain products 

State 

Corn Rye Malt Wheat Sorghum 

grain 

Pounds Pounds Pounds Pounds Pounds 

California 12,117, 407 1, 967, 335 1, 700,070 473, 368 

Illinois 195, 440,823 46, 654, 594 43, 698,203 26, 857, 690 109, 579, 257 

Indiana 279, 466, 210 20, 981, 278 33, 238,181 5, 041, 606 

Iowa 10, 927 300 , 1, 747, 200 6, 557,617 

Kansas 672,620 22, 310 2, 532, 730 15, 229, 911 9,190, 590 

Kentucky 636,051, 791 129, 244,141 95, 515, 834 3, 688, 340 

Maryland 86, 815, 275 27,794, 899 14,388,443 3, 508, 176 

Massachusetts 9, 056, 544 794,416 1,074,472 

Missouri 1, 727,998 285.908 2,66 7,894 5, 600, 392 

Nebraska 2,662,605 29.105,627 

New York 11, 626,108 2, 119, 938 7,339, 808 

Ohio 64, 626,102 4,129,795 9, 002, 329 37,956,688 

Pennsylvania 6,98 7,949 1, 676, 387 748,175 3, 077, 384 

Tennessee 2,564,744 698,880 1,018, 320 

Virginia 2, 564, 744 789,152 591,864 

Total 11,209, 433,179 235, 095, 095 214, 016, 256 1 45, 775, 941 217, 429, 503 

Grain and grain productsCon inued Products Other maState Molasses used in redistillation Wrials 

Mixed grain Total 

Pounds Pounds Gallons Proof gallons Pounds 

California 16, 258,170 15,164 

Illinois 6, 160, 100 428, 390, 667 1,059, 418 1 311, 830 

Indiana 338, 727, 275 4, 893.906 

Iowa 19, 232,117 420, 759 

Kansas 789,761 28, 437, 922 205,015 

Kentucky 764, WO, 106 1,444,328 328973, 225 

Maryland 132, 562, 793 . 1, 205, 108 1 4,263 

Massachusetts 10, 925, 432 1,002, 783 

Missouri 28, 917, 112 40, 479, 304 

Nebraska 31, 768, 232 19, 405 

New York 21, 199, 360 231, 776 

Ohio 105, 713, 914 2, 939, 441 

Pennsylvania 6, 739, 895 3,983, 476 

Tennessee 8, 736.000 

Virginia 3,945, 760 

Total 35,856, 973 1, 957, 616, 947 1 2,447, III 15,876, 693 316, 093 

Whisky, mm, gin, vodka, and spirits. Fo materials used at fruit distilleries in production of brandy 

and spirits-fruit, see table 34. 

1See footnote 2, table 31. 

See footnote 3, table 31. 

4 Represents 227,411 pounds of dismal& 81,396 pounds of malt sirup, and 3,023 pounds of enzyme extract. 

6 Represents 2,436 pounds of diamalt and 1,827 pounds of malt sirup. 

4 See footnote 4, table 31. 

STATISTICAL TABLES 201 

TABLE 33.-Materials: Used at fruit distilleries in production of brandy and spirits, 

by kinds and by months, fiscal year 1952 

Month 

Fruit and fruit products 1 

Grape Raisin Total Grape Raisin 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

Pounds 

177, 270 

1. 392, 810 

9, 248, 700 

11, 552, 190 

3, 280, 860 

3, 342. 370 

1, 329, 200 

Pounds 

229,811 

1, 602, 475 

695, 878 

1, 489, 786 

1, 706, 391 

1, 333, 284 

2, 033, 898 

1, 608, 320 

1, 073, 404 

707. 966 

559,853 

973,608 

Pounds 

407,081 

2, 995, 285 

9, 944, 578 

13, 041, 076 

4,987, 251 

4, 675, 654 

3. 363,098 

1. 698. 320 

1, 073, 404 

707, 966 

559, 853 

973,698 

Gallons 

689,984 

9, 331, 739 

73, 042, 484 

158, 214, 637 

93, 739, 828 

28, 934, 343 

7. 777, 824 

3. 721, 619 

305,326 

2, 162, 140 

1, 196, 841 

1,171, 962 

Gallons 

1,735 

82, 621 

92,180 

41, 796 

46, 097 

77, 402 

54, 346 

107. 993 

14, 135 

30, 323, 400 14,104, 764 44, 428,164 380, 288, 727 518, 305 

Month 

Fruit and fruit products 1 -Continued 

Apple Fig Peach Pear Other Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

Gallons 

417, 499 

264, 867 

248,855 

99, 004 

357, 976 

427,350 

451, 520 

168,800 

216,143 

210, 212 

100,009 

12,700 

Gallons 

35,501 

510, 552 

542,121 

Gallons 

4, 000 

78,455 

20,137 

Gallons 

60, 836 

Gallons 

2, 003 

6,700 

5, 664 

2.390 

1, 590 

2,073 

7,307 

7, 221 

220 

5, 550 

Gallons 

796, 726 

9, 952, 515 

73, 518.441 

158, 683, 783 

94, 239, 835 

29, 839, 640 

8, 626, 219 

4, 005, 719 

2. 378, 28,3 

1, 414, 274 

1, 272. 191 

337,711 

2, 974, 935 1, 088,174 102, 592 50, 886 1 40, 718 385,054.337 

1In addition 172,531 proof gallons of brandy were used in redistilla 

Represents 19,753 gallons of cherry, 8,335 gallons of blackberry, 5,664 gallons of boysenberry, 6,376 gallons 

of loganberry, and 1,590 gallons of currant. 

TABLE 34.-Materials: Used at fruit distilleries in production of brandy and spirits, 

by kinds and by States, fiscal year 1962 

Kind 

Fruit and fruit products' 

California California Colorado Connecticut Missouri New Jersey 

Pounds Gallons Gallons Gallons Gallons Gallons 

Grape 30.323,400 379, 195, 948 5, 386 3.176 302,350 

Raisin 14,104, 764 518, 305 

Appel 841, 131 199, 468 505, 627 

Fig 1, 088, 174 

Peach 98, 592 4,000 

Pear 

Cherry 3,442 5.003 

2,170 2,300 

Boysenberry 5, 664 

Loganberry 3, 373 

Currant 

Total 44, 428,164 381, 747, 814 14.371 3, 176 19%468 1, 21% 277 

See footnote at end of table. 
Gallons 

380, 288, 727 

518, 305 

2, 974,935 

1, 088, 174 

102, 592 

50,886 

19, 753 

8, 335 

5, 664 

5,376 

1, 590 

Grape 

Raisin 

Apple 

Frg 

Peach 

Pear 

Cherry 

Blackberry 

Boysenberry 

Loganberry 

Currant 

Gallons 

47, 050 

Gallons 

41,851 

48,125 

Gallons 

159, 724 

50, 886 

Gallons 

740, 016 

92,242 

390 10, 921 

3, 865 

2. 003 

1,590 

Fruit and fruit products I-Continued 

New York Ohio Oregon Washington United States 

total 

Kind 

Total 47,050 04,231 210,610 846,772 385, 064, 337 

202 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 34.-Materials: Used at fruit distilleries in production of brandy and spirits, 

by kinds and by States, fiscal year 1952-Continued 

I In addition 172,531 proof gallons of brandy were used in redistillation. 

Includes 681,568 gallons in Virginia. 

TABLE 35.-Production: I Distilled spirits, by kinds and by months, fiscal year 1952 

[Tax gallons] 

Month Whisky Brandy Rum Gin s Vodka Other spirits Total 

July 9, 763, 320 58, 067 159, 699 681,132 5, 927 8,125, 968 18, 774, 113 

August 6,904, 533 307, 617 172, 192 795, 592 21, 317 8, 225, 310 16, 376, 561 

September 8,158, 346 1, 254, 423 144, 119 504, 719 26, 788 12, 058, 427 22, 146, 822 

October 10, 321, 992 2, 239, 224 190, 803 454, 913 31, 754 21, 512, 516 34, 751,202 

November 10, 960, 573 2, 448, 580 208, 458 641, 010 19, 524 14, 141, 438 28, 419, 583 

December 10, 464, 626 1, 305, 058 155, 644 467, 781 23, 577 6, 979, 457 19, 396,143 

January 9, 547, 954 566, 940 149, M5 490, 886 4, 364 6, 273, 539 17, 033, 218 

February 9, 113, 520 628,005 134, 523 476, 367 4, 789 5,189, 397 15, 546, 601 

March 8, 648, 373 312,906 165,083 625,489 24,179 5, 232, 602 15, 008, 582 

April 8, 044, 683 136, 577 190, 668 1, 207, 940 38, 227 4, 625, 599 14, 193, 699 

May 6, 792, 621 223,411 138,265 881,841 140,536 3, 465, 349 11, 642, 0/3 

June 

Total 

4, 823, 412 40, 232 152, 839 999, 162 21, 025 2, 543 559 8, 577, 229 

2 103, 543, 953 49, 521,040 2 1, 911, 838 8,156, 782 362,007 + 98, 370,161 221,865, 781 

I Represents production of whisky, brandy, rum, gin, vodka, and spirits by registered distilleries, and 

brandy and spirits-fruit by fruit distilleries. For purpose of withdrawal, see tables 39 and 43. 

For production of gin at rectifying plants, see table 55. 

Represents 84,025,801 tax gallons of bourbon whisky, 9,517,107 tax gallons of rye whisky, 9,273,156 tax 

rollout, of Corn whisky, and 727,889 MX gallons of other whisky designated as bourbon mash whisky, 

rye mash whisky etc., by virtue of being paekaged in reused cooperage. 

Includes 3,270

, tax gallons produced at registered distilleries. For kinds of brandy and spirits-fruit 

produced, see table 37. Represents production for beverage and industrial purposes. Includes 1,763,339 tax gallons removed for 

denaturation. 

4 Represents production for beverage and Industrial purposes. Represents 36,555,625 tax gallons of spiritsfruit produced at fruit distilleries and 62,814,536 tax gallons of spirits-grain, spirits-cane, etc., at registered 

distilleries. Includes 1,880,189 tax gallons removed for denaturation and 11,269,533 tax gallons transferred 

to industrial alcohol plants and bonded warehouses Which could be withdrawn for either industrial or 

beverage purposes. • 

STATISTICAL TABLES 203 

TABLE 36.-Production: I Distilled spirits, by kinds and by States, fiscal year 1952 

[Tax gallons] 

State Whisky Brandy Rum Gin = Vodka Other spirits Total 

California 1, 435, 393 9, 031, 096 52, 441 20, 815 35, 560, 235 46,099, 980 

Colorado 4,469 4,469 

Connecticut 1,014 1,014 

Illinois____-_-__- 20, 547, 951 1, 629, 372 80,915 16, 690, 416 38,948,654 

Indiana 9, 465, 803 1, 365, 587 29, 346 19, 066, 686 29, 926, 922 

Iowa 2, 556 2, 113, 80 9 2, 116, 365 

Kansas 33,433 2, 775, 175 2, 808, 608 

Kentucky 61, 993, 643 1, 144, 701 566,420 5, 606, 557 69, 311, 321 

Maryland 7, 373, 963 101, 884 _______ 4,185, 269 11, 660, 916 

Massachusetts 604, 955 767,137 50,032 081,499 1, 721, 176 

Missouri __________ 187,790 2,081, 4992,209,289 3,09 

Nebraska 3, 094, 574 3, 094, 574 

New Jersey 183,125 842,883 

New York 9, 121 1, 018, 383 820, 379 1, 842, 883 

Ohio 535, 658 22, 217 2, 918, 791 143, 121 6, 686,049 10, 305,836 

Oregon 56, 074 08,662 

Pennsylvania 311, 708 504,104 1,788 0-609,539 746,515 

Tennessee 746, 515 746, 515 

Virginia 341, 074 41,564 418, 514 

Washington 141, 564 141, 564 

Total 2 103, 543, 953 2 9, 521,040 0 1, 911, 838 8,156, 782 362, 007 198, 370, 161 221, 865, 781 

I Represents production of whisky, brandy, rum, gin, vodka, and pints by registered distilleries, and 

brandy and spirits- ruit by fruit d'stilleries. For purposes of withdrawal, see tables 40 and 44. 

For production of gin at reetilyng plants, see table 56. 

Represents net production, that is, the original production plus production by redistillation of spirits, 

minus the quantity of spirits used n redistillation (previously reported as production). Where production 

for any State is only by redistillation of products, and spirits are produced in the same period that products 

were used for redistillation, the ne production for such State results in a negative figure, due to losses in 

redistillation. A negative figure a so results where the redistillation of products is not completed in the 

same period that the products were used for redistillation. 

4See footnote 3, table 35. 

Includes 3,270 tax gallons produced at registered distilleries. For kinds of brandy and spirits-fruit 

produced, see table 38. 

See footnote 5, table 35. 

7 See footnote 6, table 35. 

TABLE 37.-Production: Brandy and spiris by fruit distilleries, by kinds and by 

months, fiscal year 1952 

[Tax gal oils] 

Month Grape Raisin Apple Fig Pear Peach Other Total 

July 56,143 29,398 13, 162 896 350 99,949 

August 931,874 34, 735 69.129 10, 132 2,069 1,037, 039 

September 7, 552, 219 28, 750 55, 931 2, 824 191 6, 342 7,648, 257 

October 18, 128, 395 2,127 41, 650 1,453 18, 173, 625 

November 10,941,977 33,328 49,381 826 11, 025, 512 

December 3, 432, 820 18,133 35, 710 29,969 3,928 979 3, 521, 539 

January 1, 235, 897 98,642 35, 415 92, 767 1,462, 721 

February 740,647 81,180 23,396 16.045 1,541 862,809 

March 412,143 62, 981 26, 657 501, 781 

April 248, 465 15, 291 25,119 896 289, 771 

May 311, 444 27, 270 11, 177 87 349, 978 

June 67, 537 22, 286 7, 235 3, 252 1,204 101, 514 

Total I 44,059, 561 2 454,121 4383. 962 4 141, 005 4 17, 503 2 7, 238 a 9, 405 45,073, 395 

I Represents 8,521,971 tax gallons of brandy and 35,537,590 tax ga Ions of spirits-fruit. 

I ; Represpnts 946,827 tax gallons of brandy and 7,204 tax gallons o spirits-fruit. 

Represents 378,221 tax gallons of -brandy and 10,741 tax gallons-of spirits-fruit. 

Brandy. 

e Represents the following quantities of brandy: 3,348 tax gallons of cherry, 3120 tax gallons of blackberry, 

1,886 tax gallons of loganberry, 688 tax gallons of boysenberry, and 366 tax gallons of currant. 
204 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 205 

TABLE 38.-Production: Brandy and spirits by fruit distilleries, by kinds and by 

States, fiscal year 1952 

[Tax gallons] 

Kind California Colorado New Jersey Ohio Oregon Waning- Total 

Grape 43, 861, 670 907 68, 075 8, 205 119, 790 1 44, 059, 561 

Raisin 454, 121 454,121 

Apple III. 556 112,324 9, 741 38, 571 19,368 3 383, 962 

Fig 141, 605 141,605 

Pear 17, 503 17,503 

Peach 6,342 896 7,238 

Cherry 406 1,184 68 1,690 3,348 

Blackberry 1,621 566 933 3,120 

Loganberry 1, 535 350 1, 885 

Boysenberry 636 686 

Currant 366 368 

Total s 44, 575, 980 4 4, 469 1 182,045 3 18, 947 156, 074 4 141, 564 45,073, 395 

1Includes 1,014 tax gallons of brandy in Connecticut. 

Includes 10,741 tax gallons of spirits-fruit in Missouri, 4,12 tax gallon of brandy in New York, and 77,440 

tax gallons of brandy in Virginia. 

Represents 9,031,095 tax gallons of brandy and 35,544,884 tax gallons of spirits-fruit. 

Brandy. 

TABLE 39.-Withdrawals: Distilled spirits, total tax-paid,' by kinds and by months, 

fiscal year 1952 

[Tax gallons] 

Month Whisky Brandy Rum Gin Vodka 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

3, 686, 907 

5, 001, 627 

6, 887, 621 

9,129, 476 

6, 673,987 

4, 682, 073 

4, 095, 331 

4, 645, 503 

5, 536,073 

4, 997,495 

4,545,724 

5, 026, 246 

155,232 

188, 722 

225,408 

440,750 

305, 786 

226, 321 

229,682 

186,699 

196, 979 

154, 097 

901, 856 

163, 252 

19,673 

23, 311 

26, 541 

43,605 

32, 661 

27,376 

20,199 

15,839 

21, 664 

23,951 

19,205 

25, 699 

780,898 

918, 716 

595,166 

608,941 

520, 665 

384, 218 

366,110 

438,173 

675, 558 

1, 202, 090 

807, 033 

919,739 

13,170 

15,736 

24, 822 

31,172 

27,088 

8,409 

13,521 

7,367 

16,453 

19, 524 

15, 092 

26, 860 

64, 907, 563 2, 674, 790 302,724 8, 217,306 219, 214 

Month Other spirits Total Alcohol Grand total 

July 

August 

September 

October 

November 

December 

January 

February 

March April 

May 

June 

Total 

2,362,325 

2, 490,427 

3,493,181 

5,418, 599 

3, 493,232 

2, 402, 298 

1,863,057 

2,453,318 

3, 307,304 

3,176,029 

3,756,491 

3, 559, 553 

7,017,705 

8,638,539 

11,252, 738 

15,672, 549 

11,053,419 

7, 730, 695 

6,587,900 

7,746, 899 

9, 757,031 

9, 573,186 

9,345,401 

9,721,349 

2,232,910 

3,032,853 

3, 595,118 

3,016,437 

3,178,913 

2,398, 654 

1,992,958 

1, 788, 300 

1, 860, 626 

1, 754, 794 

1, 394, 984 

1,446, 672 

"9,250,615 615

11, 671, 392 

14, 847, 866 

18, 688, 9813 

14,232,332 

10,129,349 

8, 580, 858 

9,535,199 

11,617, 657 

11,327,980 

10,740,385 

11,168,021 

37, 775, 814 1 114, 097,411 27, 693, 219 141,790,630 

1Represents withdrawals upon taxpayment of whisky, rum, gin, and vodka from registered distilleries 

and internal revenue bonded warehouses; brandy from fruit distilleries and internal revenue bonded warehouses; other spirits from registered distilleries, fruit distilleries, and internal revenue bonded warehouses; 

and alcohol from industrial alcohol plants and bonded warehouses. Withdrawals of whisky, brandy, and 

rum from Internal revenue bonded warehouses include bottled-in-bond tax-paid withdrawaLs as reported 

in table 41. Tax rate on and after Nov. 1, 1951, $10.50 per tax gallon; before Nov. 1, 1951, $9. 

1For tax-free withdrawals, see table 43. 

TABLE 40.-Withdratoals: Distilled spirits, total tax-paid,l by kinds and by States, 

fiscal year 1952 

[Tax gallons] 

State Whisky Brandy Rum Gin Vodka 

California 2,291,243 994,429 5,290 50,120 1& 728 

Colorado 900 712 

Connecticut 128,822 5,391 62, 505 

Georgia 9,428 373 890 

Hawaii 

Ithuois 8, 830, 3% 196,068 2,329 1, 590, 701 13,585 

Indiana 7,796,344 280,668 33,857 1, 760, 277 3,021 

Kansas 2,072 

Kentucky 29,437, 610 79,091 13, 074 180, 728 13,197 

Louisiana 

Maine 163 1,599 

Maryland 4,088, 602 6,869 5,537 105,302 

Massachusetts 559, 625 146,140 193,157 2, 658 46,417 

Michigan 12,095 166,316 6,429 68,201 

Minnesota 29,964 22,440 260 

Missouri 157,216 127 4,924 

Nebraska 

New Jersey 97, 603 136, 418 235 

New York 1,547,250 94,915 1, 018, 383 

Ohio 1,256,377 144,945 2, 920, 408 46,369 

Oregon 322 

Pennsylvania 8,141,196 447,329 43,051 520,150 6,677 

Tennessee 345,345 1,463 

Virginia 177,412 387 

Washington 

West Virginia 

Total 64, 907, 563 2, 67 , 790 302,724 8, 217, 306 219,214 

State Othe spirits Total Alcohol Grand total 

California 1,190, 897 4, 550, 707 593,375 6,144,082 

Colorado 1, 545 3,157 3,157 

Connecticut 1,096,279 1, 242, 997 1, 2A2, 997 

Georgia 10, 691 10, 691 

Hawaii 1,640 1,640 

Illinois 8, 846, 300 19,479. 351 1,416,921 20, 896,272 

Indiana 7,490, 791 17,364, 953 7,334,221 24, 699,179 

Kansas 13, 616 15, 688 31,949 47, 637 

Kentucky 7,131, 691 36, 855, 391 3,081,264 39,936, 655 

Louisiana 602,026 602,026 

Maine 1, 762 1, 762 

Maryland 3, 554, 020 • 7, 760,330 5, 513, 524 13,273,854 

Massachusetts 1, 410, 243 2, 358, 240 288,091 2,646,331 

Michigan 42,316 295,357 295,497 590.854 

Minnesota 106,293 158,957 158,957 

Missouri 30,679 192,946 124,987 317,933 

Nebraska 309 309 

New Jersey 167, 905 902,161 4, 336, 533 9,738, 694 

New York 1, 290, 684 3, 900, 732 82, 349 3,983,081 

Ohio 1, 202,889 5, 570, 988 1,036,141 6,607,129 

Oregon 322 322 

Pennsylvania 4, 249, 666 13, 908, 069 2,922,903 16,330, 972 

Tennessee 346,808 346,808 

Virginia 177, 799 177, 799 

Washington 6,744 6,744 

West Virginia 24, 745 24, 745 

Total 37, 775, 819 3 114, 097, 411 27, 693,219 141, 790, 630 

Represents withdrawals upon taxpayment of whisky, rum, gin, and vodka from mgl tared distilleries 

and internal revenue bonded warehouses; brandy from fruit distilleries and internal revenue bonded warehouses; other spirits from registered distilleries, fruit dietteries, and internal revenue bonded warehouses; 

and alcohol from industrial alcohol plants and bonded warehouses. Withdrawals of whisky, brandy, and 

rum from internal revenue bonded warehouses include bottled-in-bond tax-paid withdrawals as reported 

in table 42. Tax rate on and after Nov. 1, 1951, $10.50 per tax gallon; before Nov. 1, 1951, $9. 

I For tax-free withdrawals, see table 44. 
206 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 41.-Withdrawals: Bottled-in-bond distilled spirits,* tax-paid, by kinds and 

by months, fiscal year 1952 

[Tax gallons] 

Month Whisky Brandy Rum Total 

July 403,308 ?.E .F.sE* :9"Rn

r4 

405,848 August 68.5,374 667, 477 September 1,034, 334 1,036,397 October 1,893,629 1, 901, 301 November 1, 063, 675 1, 071, 330 December 695 632, 543 January 465. 654 459,338 February 472. 624 476,733 March 640,333 646.093 April 614, 551 517,972 May 511,863 512,790 June 753, 479 755,534 

Total 9,035, 521 45,418 1,415 9,082,354 

I Represents withdrawals in cases of bottled-in-bond distilled spirits from internal revenu bonded warehouses. The withdrawals in this table are included in total tax-paid withdrawals reported in table 39. 

TABLE 42.-Withdrawals: Bottled-in-bond distilled spirits,' tax-paid, by kinds and 

by States, fiscal year 1952 

[Tax gallons] 

State Whisky Brandy Rum Total 

California 

Colorado 

Connecticut 

Illinois 

Indiana 

Kentucky 

Maryland 

Massachusetts 

Minnesota 

Missouri 

New Jersey 

New York 

Ohio 

Pennsylvania 

Virginia 

Total 

858,977 

468.354 

8, 618. 202 

128, 278 

20,751 

55,865 

190,001 

1,069,613 

271 

1, 347 

52, 178 

30,992 

26 159 

150, 105 

34, 428 

1,118 

7,649 

4,346 

22,184 

18 

8,876 

1,064 

6,274 

1,284 

131 

860,626 

27/ 

1,347 

482,699 

52, 175 

6, 840, 381 

126 290 

3k 2711 

26,169 

64,626 

24,622 

68,919 

196, 275 

1,010,862 

34,428 

0,035, 521 45,418 1,415 9,062,854 

3 Represents withdrawals in eases of bottled-In-bond distilled spirits from Internal revenue bonded wares 

houses. The withdrawals in this table are included in total tax-paid withdrawals reported in table 40. 

STATISTICAL TABLES 207 

TABLE 43.-Withdrawals: Distilled spirits, total tax-free; by kinds and by months, 

fiscal year 1958 

[Tax gallons) 

Month 

For fortification of 

wine 1 For denaturation For use of the United States 

For 

vesselsand 

aircraft 

Brandy Spirits- ram Rum Spirits Whisky Brandy Spirits Whisky 

July 44,738 25,431 159,699 1,141,1,809 267 

August 102, 123 648, 547 172,192 20,718 1, 200 923 786, 881 82 

September 466,153 6, 767, 867 138, 515 1,070 1, 632, 249 123 

October 1, 113, 388 15, 624, 718 181,996 34 1, 783, 677 85 

November 838,141 7, 977, 267 161.013 4, 464 1, 895,837 175 

December 284, 786 1, 776 023 135, 200 968,432 100 

January 236,793 803,779 146,768 10,0)4 34 577,182 112 

February 103,218 361, 634 131, 844 560,913 106 

March 104,497 112, 410 133,887 389,415 11, 950 81 

April 109,477 209,173 131, 940 637,376 3,924 336 

May 28,368 359, 717 135, 031 197,123 4, 017 633 

June 55,932 106, 252 135, 254 160, 171 3, 461 137 

Total 3, 487, 484 34, 774, 818 1, 763, 339 1, 880,184 25, 690 923 8, 826, 067 7 2, 226 

To customs menu acturing For report To 

warehouses 

Month Total 

Whisky Spirits Other Whisky Spirits Other 

July 55, 115 16, 052 514 17, 134 2,263 1, 1610 1, 464, 622 

August 48, 618 104 118 16, 935 10, 763 5, 373 1, 814, 577 

September 84,199 44, 023 14, 029 3,137 3, 501 9, 204.866 

October 81, 443 3 20, 944 9,169 7, 269 18, 822, 726 

November 114. 021 22, 210 510 26, 000 14, 740 2, 212 11, 056, 590 

December 63,700 203 802 27, 340 22,981 9,195 3, 286 771 

January 92,066 311 28,782 22,378 7,980 1,928, 189 

February 102, 450 8,098 688 42,913 23, 853 7, 820 1, 343, 536 

March 190,398 52,846 21,945 23,943 6,288 1, 047. 660 

April 

May 

130,357 

121,848 

42,250 

30, 652 

1. 456 

1, 080 

27,144 

22,004 

13.367 

16, 415 

10,750 

5,468 

1,217, 550 

922, 224 

June 260,426 15,010 163 23, 481 13, 577 5,007 778, 871 

Total 1,344, 641 231, 759 3 5,334 288, 651 176, 586 a 72, 471 52,830, 182 

I Represents withdrawals of whisky, rum, gin, and vodka from registered distilleries and internal revenue 

bonded warehouses; brandy rom fruit distilleries and internal revenue bonded warehouses; and other 

spirits from registered distilleries, fruit distilleries, and internal revenue bonded warehouses. In addition 

11,269,533 tax gallons of spirits were withdrawn for transfer to industrial alcohol plants and bonded warehouses. 

Represents 2,358,922 tax gallons of brandy and 31,655,166 tax gallons of spirits-fruit withdrawn from 

fruit distilleries and 1,128,562 tax gallons of brandy and 3,119,652 tax gallons of spirits-fruit from internal 

revenue bonded warehouses. (Under the Act of June 24, 1940 (Public Law 655, 76th Cong.), effective 

July 1, 1940, the tax on brandy and spirits-fruit used in fortification is Included in the wine tax.) 

3 Represents whisky, with the exception of six tax gallons of gin. 

Represents 4,028 tax gallons of gin, 930 tax gallons of brandy, and 376 tax gallons of rum. 

Represents 51,484 tax gallons of gin, 9,967 tax gallons of brandy, 8,482 tax gallons of rum, and 2,558 tax 

gallons of vodka. 
208 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 44.-Withdrawals: Distilled spirits, total tax free, )by kinds and by States, 

fiscal year 1952 

[Tax gallons] 

State 

For fortification of For denaturation For use of the United States vesselsand wines aircraft 

For 

Spirits- Brandy fruit Rum Spirits Whisky Brandy Spirits Whisky 

California 2 889, 527 34, 685, 562 4,024 1,098- 

Colorado 3, 687 Connecticut, 21,498 

Georgia 7,280 Illinois 28, 134 104,418 6,036 5,247,376 

Indiana 1, 482, 955 983,647 

Kansas 42,362 61,294 

Maryland 3,430 Kentucky 1,131, 608 923 240 76 

Massachusetts 631,731 Michigan 8,585 4, 241 Missouri 17,909 11, 712 34 1, 559, 292 

Nebraska 213, 555 974, 458 

New Jersey 213, 224 67,106 

New York 42, 394 1, 061 

Ohio 21, 277 Oregon 25,412 

Pennsvlvania 25, 182 15,356 

Virginia_ 79,053 Washington 143,983 

Total 3, 487,484 34.774, 818 1, 763, 339 1, 880,184 25,690 923 8, 826, 067 4 2, 235 

• To customs manufac using For expos bonded warehous s 

State Total 

Whisky Spirits Other Whisky Spirits Other 

California 99, 014 15, 316 2, 836 3, 349 1,101 5,945 37, 707, 772 

Colorado 3, 687 

Connecticut 9, 419 30, 917 

Georgia Illinois 

7,280 

386, 039 122, 759 2,004 6, 761 1, 043 4, 289 5, 908, 859 

Indiana 118, 024 18, 903 2, 603, 529 

Kansas 103, 656 

Kentucky 391, 402 86,611 3, 680 2, 661 1, 596, 885 

Maryland 274, 364 178, 886 112, 167 569,163 

Massachusetts 773 376 1,643 918 1,848 637, 289 

Michigan 12, 826 

Missouri 1, 588. 947 

Nebraska 1,188, 013 

New Jersey 670 281.000 

New York 42, 533 85, 988 

Ohio 118 21,395 

Oregon 25,412 

Pennsylvania 22,403 8,170 94,332 58,696 60.3139 284, 528 

Virginia 79, 053 

Washington 

143.983 

Total 1 344,641 231, 759 4 5, 334 288, 651 176, 588 172, 471 52,880, 182 

I See footnote 1, table 43. 

2 See footnote 2 table 43. 

Represents whisky, with the exception of six tax gallons of gin withdrawn in California. 

4 See footnote 4, table 43. 

See footnote 5, table 43. 

STATISTICAL TABLES 209 

TABLE 45.-Losses 1 Distilled spirits in internal revenue bonded warehouses, by 

kinds and by States, fiscal year 1952 

[Tax gallons] 

State Whisky Brandy Rum Gin Vodka Other 

spirits Total 

California 515, 137 166,047 1, 767 277 

i 

2K 2 5 2E 22 2E2 22 

S 5 

733, 192 Colorado 86 114 Connecticut 38.009 766 39 41,636 Georgia ' 707 3,689 1 4,397 Illinois 1, 986, 271 39,180 569 57 3 2, 426, 885 Indiana 

Iowa 

2, 352, 412 63, 633 8, 904 48, 075 2,858, 853 

Kansas 5 , 701 

Kentucky 1,948, 505 15, 275 4, 616 36 10 

633 

Maine 8, 195,328 35 300 

Maryland 335 

Massachusetts 

1,281,929 2,335 793 3 1, 475, 248 

Michigan 

100,750 12,266 51,202 15 58 171, 358 

Minnesota 

1, 718 9, 467 786 205 6,329 826 6, 427 

Missouri 7. 502 

Nebraska 

41, 044 30 9 50, 745 

3, 851 

New York 

New Jersey 16, 719 28, 097 2 46, 474 412, 924 13, 072 Ohio 426, 551 265, 886 17, 301 2 464 344, 352 Oregon 398 398 Pennsylvania 2, 828, 619 76, 229 18,194 3, 023 2 3, 104,999 Tennessee 57,721 426 58,147 Virginia 

Washington 

49,179 1, 863 

7 51, 042 

7 

Total 17, 898, 477 450, 808 86, 731 61, 537 744 1, 525, 780 20, 014, 077 

+ Represents original tax gallons less tax gallons withdrawn (includes losses tax-paid). 

TABLE 46.-Stocks: Distilled spirits in internal revenue bonded warehouses, by kinds 

and by months, fiscal year 1952 I 

[Tax gallons] 

Month Whisky Brandy Rum Gin Vodka Other spirits Total 

July 755, 767, 716 11,175, 527 2,199, 437 1, 209, 776 28,102 139, 953, 217 910,333, 775 August 756, 411, 230 11, 171,033 2, 170, 113 1,023, 814 36, 240 149, 611, 981 915, 424, 411 September 755, 456, 892 11, 736, 981 2,139, 210 926,903 35, 715 144, 281,100 914, 676, 801 October 754, 147,017 12, 263, 798 2 095, 228 760,198 32,136 142, 965, 086 912, 263, 463 November 756, 520, 758 13, 485, 814 3,169,862 2,100, 864, 005 27, 371 144, 295, 773 917, 204, 683 December 760, 802, 770 14, 388, 780 2,083, 562 952, 801 42, 494 146, 924, 979 925, 195, 386 January 765, 029, 230 14, 434, 344 2, 054,957 1,070, 602 33, 318 149, 955, 980 932, 578, 431 February 

March 

767, 818, 541 19,664,266 2, 033, 927 I, 086, 421 23, 580 150, 792, 789 936, 419, 524 768, 744, 775 14,690,902 2, 033, 444 1, 021, 737 24, 403 163, 566,040 940, 071, 301 April 

May 

769, 763,073 14, 620, 792 2, 004, 953 989, 747 55, 434 153. 623, 089 941, 057,088 769, 996,118 14, 558,135 1, 988, 502 1, 076, 424 179, 738 152, 653, 582 940, 452, 499 June 767, 557, 977 14, 345, 041 1, 972, 233 1,148, 460 173, 418 151, 959, 204 937, 156. 333 

I Represents original entry tax gallons except for distilled spirits in cases, for which losses have already 

been determined. Stocks of distilled spirits in oases as of June 30 were as follows: 708,946 tax gallons of 

whisky, 27,014 tax gallons of brandy, 3,668 tax gallons of ruin, and 121 tax gallons of gin. 

I Represents spirits produced by registered and fruit distilleries. 
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210 REPORT OF COMMISSIONER. OF INTERNAL REVENUE 

TABLE 47.

-Stocks: Distilled spirits in internal revenue bonded warehouset, by 

kinds and by Sates, June 30, 1952 

[Tax gallons] 

State Whisky Brandy Rum Gin Vodka Other spirits ' Total 

Califemila 5, 348, 320 9, 961, 471 35, 403 29,480 1, 589 3, 857.903 10, 234.166 

Colorado 96 2,487 240 1,236 4,059 

Connecticut 262,635 26,305 14,834 2,556 250,311 656,841 

Illinois 94, 292, 236 258.119 2, 576 14.093 3, 782 33.750, 704 128, 231,509 

Indiana 88, 360, 268 1,487,419 221, 790 1,007, 525 28, 325 43, 927, 749 135,031, 078 

Iowa 576, 214 676. 214 

Kansas Z 526 6, 564 3, 634, 805 3, 643.896 

Kentucky 368, 860;695 98, 057 144, 135 9,176 1, 386 13, 222, 981 382,326, 430 

Louisiana 241,759 206,828 448, 587 

Maine 296 3, 832 4,128 

Maryland 61, 713, 827 13, 798 8, 721 3,948 13, 344,993 75, 035, 287 

Massachusetts 2,343, 772 176,017 1,038, 892 2, 722 18.823 1, 055, 658 4, 636,384 

Michigan 6, 375 74, 369 8, 709 7, 905 5, 362, 240 5,459, 598 

Minnesota 8,363 122,057 3,374 133, 690 267,484 

Missouri 1, 811, 247 155 1, 644 3, 870, 919 5, 683,966 

Nebraska 

New Jersey 27, 638 349.951 , 

296 

17, 333 

298 

394, 922 

New York 247, 758 241,876 499. 748 939, 382 

Ohio 28, 776, 212 316,479 10,091 826 102, 272 12,326.555 41,546,435 

Oregon 141, 751 141, 751 

Pennsylvania III, 251, 380 975,242 295,689 80,838 1,976 16, 131, 637 128, 717, 512 

Tennessee 2, 512,713 2,079 2, 517, 957 

Virginia 1, 430,900 62,079 1,492,979 

Washington 9,483 232 9. 715 

Wisconsin 148.981 148,961 

Total 767, 557,977 14. 345, 041 1,972, 233 1,148, 460 173, 418 151, 959, 204 937, 156,333 

1See footnote 1, tab e 46. 

See footnote 2, tab e 46. 

TABLE 48.

-Stocks: Distilled spirits in internal revenue bonded warehouses, 

kinds, and by years and seasons of production, June 30, 1952 

by 

(Tax gallons] 

Year Season Whisky Brandy Rum Gin Vodka Other spirits 2 Total 

1911 Spring 30 30 

Fall 135 135 

1912 Spring 

Fall 9 

69 

108 

69 

117 

1913 Spring 117 117 

Fall 3 3 

1914 Syring 568 568 

Fall 165 166 

1915 Spring 

Fall 237 

72 

24 

72 

261 

1916 Spring 

Fall 3, 645 

3, 027 

123 105 

3, 027 

3, 873 

1917 Spring 

Fall 

1.140 

1,394 

24 

6 105 

48 

67 

1.212 

1,572 

1921 Spring 180 180 

Fall 558 558 

1944 Fall 415,187 84,189 94,905 415 594,696 

1945 Spring 

Fall 

1,799.668 

16, 622, 500 

89,965 

351.298 128, 594 

116,901 

568 

11, 332 

107, 266 

2,017, 866 

17, 210, 226 

1946 Spring 20,359, 909 300, 510 245, 055 5, 350 182,125 21.092, 949 

Fall 18,424.122 1, 133, 462 186, 308 864, 660 20.608, 552 

1947 Spring 45, 596,814 1, 438, 650 218, 374 180 1, 479, 575 48. 733. 593 

Fall 15, 334, 761 483, 695 168, 581 2, 509, 541 18,496, 578 

1948 Spring 77, 825, 947 109, 709 64.512 3, 462 3, 552,471 81, 566, 101 

Fall 73,126 497 323,983 87, 539 6, 287,022 79, 825, 041 

1949 Spring 72, 048,110 5,112 97,786 3,426 4,341,885 76,496, 319 

Fall 48,770, 232 663,294 110,299 454 3,103,977 52. 648, 256 

1950 Spring 68,918,105 60,674 73,364 61, 854 6, 012, 944 76,126. 941 

Fall 105,253,988 2,398, 744 120,994 2,196 27, 448,899 135, VA, 821 

1951 Spring 100,074,045 588.279 110, 642 72.056 1,832 49,426, 274 150, 273, 128 

Fall 56,118, 705 4, 842, 297 82, 298 196,684 4, 006 29, 304, 266 90. 548, 256 

1952 Spring 46, 858,761 1, 470,172 65.823 805, 625 164.118 17,316, 562 66, 681. 051 

Total 767, 557, 977 14, 346,041 1, 972, 233 1, 148. 460 173,418 151,959,204 1137, 158,333 

Bee footnote 1, table 46. 

Bee footnote 2, table 46 

STATISTICAL TABLES 

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STATISTICAL TABLES 213 

TABLE 50.-Summary: Production, withdrawals, and stocks of distilled spirits,'by 

months, fiscal year 1952 

[Tax gallons] 

Month Produe- ton 1 

Tax-paid withdrawals ' 

Tax-free 

withdrawals 1 

Stocks' nd 

of monh t 4 

- 

Bottled-inbond distilled 

spirits 

Other dis- e 

tilled 

spirits 

Alcohol Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

18,774,113 

16, 376, 561 

22,146, 822 

34, 751, 202 

28, 419, 583 

19, 396,143 

17, 033, 228 

15, 546, 601 

15, 008, 582 

14,193, 694 

11, 612, 023 

8, 577, 229 

405, 848 

667, 477 

1, 036, 397 

1, 901, 301 

1, 071, 330 

632, 543 

459, 336 

976,733 

615, 093 

517,972 

512, 790 

755, 534 

6,611,857 

7, 971, 062 

10, 216, 341 

13, 771, 248 

9, 982, 039 

7, 098,152 

6,128, 564 

7, 270, 166 

9, Ill, 938 

9, 055, 214 

8, 832, 611 

8, 965, 815 

2,232,910 

3, 032, 853 

3, 595,118 

3, 016.437 

3,178, 913 

2,398,654 

1, 992, 958 

I, 788, 300 

1, 860, 626 

1, 754, 794 

1, 394, 984 

1,446, 672 

9,250,815 

11, 671, 392 

14, 847, 856 

18, 688, 986 

14, 232, 332 

10,129, 349 

8, 580, 858 

9, 535, 199 

11, 617, 657 

11, 327, 980 

10, 740, 385 

11,168, 021 

1,464,622 

1, 814, 577 

9,204, 866 

18, 822, 726 

11,059, 590 

3, 280, 771 

1, 926,189 

1, 343, 536 

1,017, 660 

1, 217, 550 

922,224 

778, 871 

910, 333, 775 

915,424,411 

914, 576, 801 

912,263, 463 

917,201, 583 

925, 195, 386 

932, 578, 431 

936,419, 524 

940, 071, 301 

941,057,0813 

910, 452, 490 

937, 156, 333 

221, 865, 781 9, 082, 354 105, 015, 057 27, 693, 219 141, 790, 630 52, 880,182 937, 156, 333 

Represents production of whisky, rum, gin, brandy, vodka, and spirits by egistered distilleries and 

brandy and spirit by fruit dis illeries. 

2 Represents tax-paid withdrawals of whisky, rum, gin, vodka, and spirits f om registered distilleries 

and internal revenue bonded warehouses; brandy and spirits from fruit distille ies and internal revenue 

bonded warehous s; and alcohol from industrial alcohol plants and bonded warehouses. Bottled-in-bond 

distilled spirits to -paid after bottling. Other distilled spirits tax-paid prior to bottling. 

Represents tax free withdrawals for fortification of wine, for denaturation, for use of the United States, 

for vessels and aircraft, and for export, and transfers to customs manufacturing bonded warehouses. In 

addition 11,269,533 tax gallons of spirits were withdrawn for transfer to industrial alcohol plants and 

bonded warehouses. 

Represents stocks of whisky, rum, gin, brandy, vodka, and spirits In internal revenue bonded 

warehouses. 

TABLE 51.-Summary: Production, withdrawals, and stocks on hand June 30, of 

distilled spirits, and premises operated, fiscal year 1952 

[Tax gallons] 

State Production 1 

Tax-paid withdrawals I 

Bottled-inbond distilled 

spirits 

Other digtilled spirits A lcohol Total 

California 46,099, 980 366,526 4,184,181 593, 375 5,144, 082 

Colorado 4,469 271 2,886 ______________ 3,157 

Connecticut 1, 014 1, 347 1, 241, 650 1, 242, 997 

Georgia 10, 691 10, 691 

Hawaii 1, 610 1, 640 

Illinois 38,948,654 462, 699 19, 016, 652 1, 416, 921 20, 896, 272 

Indiana 29, 926, 922 52,178 17, 312, 780 7, 334, 221 24, 699,179 

Iowa 2,116, 365 

Kansas 2, 80A, 608 15,688 31,919 47,637 

Kentucky 69, 311, 321 6, 610, 386 30, 215, 005 3,081, 261 39, 936, 655 

Louisiana 602, 026 602, 026 

Maine 1,762 1,762 

Maryland II, 660,916 128, 296 7, 632, 034 5, 513, 524 13, 273,854 

Massachusetts 1, 721, 176 32,276 2, 325, 964 288,091 2,616, 331 

Michigan 295,357 295, 497 590,834 

Minnesota 26,159 132,798 158,957 

Missouri 2, 269, 289 50,105 142,841 124,987 317,933 

Nebraska 3, I194, 571 309 309 

New Jersey 189, 045 24, 627 377, 534 4, 336, 533 4, 738, 694 

New York - 1, 842, 883 56.919 3, 813, 813 82,349 3, 983, 081 

Ohio 10, 305, 836 195, 275 5, 375, 713 1, 036,141 6, 607,129 

Oregon 56.074 322 322 

Pennsylvania 203,062 1, 010, 862 12, 397, 207 2, 922, 903 16, 330, 972 

Tennessee 746, 515 36,808 346,808 

Virginia 418,514 3,428 143,371 177, 799 Washington 141, 564 6, 744 6, 744 

West Virginia 24, 745 24,745 

Wisconsin 

Total 221, 865, 781 9,082, 354 105, 015, 057 27, 693, 219 141, 790, 630 

See footnotes at end of table. 
STATISTICAL TABLES 215 

214 REPORT OF COMMISSIONER OF INTERNAL. REVENUE 

TABLE 51.-Surnmary: Production, withdrawals, and stocks on hand June 30, of 

distilled spirits, and premises operated, fiscal year 1952-Continued 

[Tax gallons] 

State 

Tax-free 

w ithdrawals $ 

Stocks, June 

30 $ 

Premises operated I. 

Registered 

distilleries 

. .• Fruit amtilleries 

Internal rev 

3555 b°1111551 warehouses California 

Colorado 

Connecticut 

Georgia 

Hawaii 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Nebraska 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Tennessee 

Virginia 

Washington 

West Virginia 

Wisconsin 

Total 

37, 707, 772 

3,687 

30,917 

5,!08,859 

2, 603, 529 

103, 656 

1, 596, 885 

569,163 

637,289 

12, 826 

1, 588, 947 

1, 188, 013 

281,000 

85,988 

21, 395 

25,412 

284,528 

79,053 

143, 983 

7,280 

19,234,166 

4,059 

556,641 

128, 231, 509 

135,031,076 

576,214 

3, 643, 895 

382, 336, 430 

448, 587 

4,128 

75, 085, 287 

9,635,384 

5, 459, 598 

267, 484 

5, 683, 965 

296 

394,922 

989,382 

41, 546, 435 

141,751 

128, 715, 512 

2,517,957 

1, 492, 979 

9, 715 

148, 961 

M M a vtiti 

1-- . M .N. NN 

r 

52, 880,182 937,156,333 81 113 234 

1 See footnote 1, table 50. 

$ See footnote 2, table 50. 

3 Sec footnote 3, table 50. 

I See footnote 4, table 50. 

$ Represents number operated during any part of the year. 

'Operations during year consisted only of transfers in bond., 

TABLE 52.-Summary: Production, tax-paid withdrawals, and stocks on hand June 

30, of whisky and of total distilled spirits, and premises operated, fiscal years 1934 

to 1952, inclusive 

[Tax gallons] 

Fiscal year ended June 30- 

Production I Tax-paid withdrawals 

Whisky Total distilled 

spirits Whisky Total distilled spirits 

1934 62, 352, 666 76,306,388 18, 875, 964 38, 601, 236 

1935 149, 112, 923 169, 126, 472 50, 780, 940 75.073.993 

1936 223, 659, 539 253. 867, 925 67, 299, 166 100, 383,056 

1937 223. 457, 850 258, 956, 886 72, 616, 195 120, 011,294 

1938 102, 895. 872 150, 155, 924 68, 611, 650 114, 926, 395 

1939 93, 003, 917 145, 326, 176 72, 059, 023 114, 578,069 

1940 98, 993, 303 143, 455. 192 81, 267, 368 128, 325, 941 

1941 121, 851, 943 175, 208, 746 80, 541, 979 1311, 552,198 

1942 120, 257, 424 a 256, 392. 401 84, 709, 171 199. 207, 510 

1943 19, 529, 698 a 426, 474, 962 87, 913, 792 136, 836, 551 

1944 8429, 069, 171 58, 832, 992 90, 463, 887 

1945 41, 562, 303 $ 535, 939, 513 63, 891. 224 142 330, 770 

1946 147, 464. 516 305, 066, 637 63, 226, 912 178, 131, 350 

1947 167, 994, 805 315, 157, 700 58, 822, 676 173. 505, 111 

1948 129, 597. 067 244, 127, 392 53, 003, 200 197, 160, 331 

1949 149. 595, 239 266, 592, 499 52, 674, 964 141, 766, 697 

1950 118, 760, 487 208, 235. 050 60. 499. 332 144, 123, 699 

1951 205, 702.460 4 1, 452. 796 76.442, 149 174, 625, 188 

1952 . 103. 543, 953 221, 865, 781 64, 907, 563 141, 790. 630 

Fiscal year ended June 30- 

Stocks June 30 1 Number of premises operated 

Whisky Total distilled 

spirits 

Registered 

distilleries 

Fruit 

distilleries 

Internal 

revenue 

bonded 

warehouses 

1934 57, 717, 662 63, 065, 017 51 

MERE RMARREAM 

1935 152, 807, 235 160, 755, 394 88 

1936 300. 658, 508 310, 803, 839 121 

1937 445, 285, 663 462, 607.980 137 

1938 471, 159, 539 497, 527, 755 118 

1939 478, 899, 618 522, 058, 134 112 

19.10 480, 937, 009 525, 394, 924 101 

1991 504. 080, 691 551, 429, 175 105 

1942 516, 918, 887 587, 751. 374 116 

1943 424, 824, 966 476, 345. 030 130 

1944 348. 646, 381 376, 277, 850 122 

1945 305 587, 545 338, 172, 677 138 

1946 374. 072, 055 420, 262, 363 144 

1947 464, 825, 305 525, 827, 726 147 

1948 522, 260, 756 594, 733, 095 130 

1949 602, 925, 861 677, 343, 619 99 

1950 643, 279, 511 708.562,193 82 

1951 751, 233,178 901. 106, 188 109 

1952 767, 557, 977 937, 156, 333 81 

Exclusive of ethyl alcohol 

Includes ethyl alcohol. 

Represents gross production. Net produc ion for such years-that is, the gross production minus products used in redistillation-was 255,915,204 tax gallons for 1942, 407,568,226 tax gallons for 1943, 420,833,502 tax 

gallons for 1944, and 524,301,407 tax gallons for 1945. 
216 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 217 

VI. DISTILLED SPIRITS AND WINES: RECTIFIED 

(Produced by rectifying plants) 

TABLE 53.-Materials:1Used in production of rectified spirits and wines, by kinds 

and by months, fiscal year 1952 

[Proof gallons] 

Month Alcohol Spirits 5 Whisky Brandy Wines Other Total 

July 1, 520, 596 2,710,584 2, 038, 586 117, 801 59, 901 46, 224 6, 493,192 

August__ 2, 255, 718 2, 971, 180 2 503,880 168, 199 67, 089 38,211 8,504,267 

September 2, 855, 742 3, 953, 302 3, 436, 321 189, 152 87, 194 42, 244 10, 563, 955 

October 2,144, 672 5, 964, 902 3.944, 707 363,803 123, 597 70,201 12, 611, 880 

November 2, 206, 270 3, 853, 589 3, 003, 402 284, 695 89, 834 73, 285 9, 511,075 

December 1, 665, 362 2, 970, 975 2, 262. 082 199, 897 67, 921 61, 594 7, 227, 331 

January 1, 231, 220 2, 004, 543 1, 554, 257 213, 425 47, 070 61, 551 5, 112, 066 

February 1, 341, 088 2. 507, 342 1, 866, 573 152, 299 56, 719 61, 372 5, 985.338 

March 1, 562, 905 3.091, 323 2, 163, 153 169, 993 70, 841 58.951 7, 117, 166 

April 1, 440, 801 3. 117, 919 2, 204, 845 150, 323 59, 120 86,118 7, 059,126 

May 1, 042. 394 3. 735, 883 2, 211, 392 185, 288 64. 793 58, 939 7, 298, 689 

June 

Total 

1,177, 783 3. 394, 376 2,203,649 156, 742 53, 791 71, 276 7, 057, 617 

20, 444, 551 40, 275, 918 29, 392, 847 2, 351, 560 846, 870 a 729, 956 94, 041, 702 

1Includes imported 'guars as follows: 2,086 proof gallons of whisky, 23,676 proof gallons of brandy, 10,726 

proof gallons of wines, 70,041 proof gallons of other liquors consisting of 3.760 proof gallons o rum, 2,288 

proof gallons of gin, 694 proof gallons of vermouth, 745 proof pa Ions of cordials and liqueurs, 20 proof gallons of 

unclassified spirits, and 2,534 proof gallons of products for exportation. 

Represents high-proof spirits produced at registered and fruit distillerie . 

Represents 124.755 proof gallons of rum, 165,920 proof gallons of gin, 92,524 proof gallons of vermouth, 

46,521 proof gallons of cordials and liqueurs, 5,789 proof gallons of vodka, 38,050 proof gallons of unclassified 

spirits, and 256,391 proof gallons of products for exportation. 

TABLE 54 .-Materials:1Used in production of rectified spirits and wines, by kinds 

and by States, fiscal year 1952 

[Proof gallons] 

State Alcohol Spirits: Whisky Brandy Wines Other Total 

California 289, 032 1, 329, 759 591, 036 882, 917 46, 166 68, 298 3, 203, 208 

Colorado 1,819 322 1,202 3,343 

Connecticut 10, 054 1, 085, 690 119, 698 5, 389 1, 765 57, 261 1, 271, 857 

Illinois 412,166 8, 651, 068 4, 173. 710 161,548 134, 356 105, 583 13, 638, 431 

Indiana 6, 395, 082 7, 336, 545 7, 445, 812 273,596 223,766 143, 071 21, 817, 872 

Kentucky 3, 817, 836 6, 411, 096 5, 899, 686 55, 840 119,865 15,236 16, 314, 559 

Louisiana 1,847 1,153 937 915 994 5,896 

Maine 15,614 3,463 195 19,302 

Maryland 1, 692, 421 5, 751, 065 3, 791, 300 3, 631 113, 019 52, 850 11, 904, 286 

Massachusetts 48, 817 1, 395, 819 410,664 132,231 3,226 119, 085 2, 109, 842 

Michigan 161,083 52, 372 18,421 192, 592 35, 679 30,360 488,507 

Minnesota 85,448 4,099 22,881 2, 546 4, 916 119, 689 

Missouri 113, 065 92, 887 1,062 5, 472 212, 486 

New Jersey __________ 2, 967, 459 481,333 103, 368 51,122 15,511 26,430 3, 645, 223 

New Mexico 906 394 1, 300 

New York 716, 496 1, 889, 396 1, 545, 205 44, 053 13, 728 40, 650 4, 279, 528 

Ohio 941,409 1, 188, 136 1, 069, 732 142,539 14,331 22,815 3, 378, 957 

Pennsylvania 2, 837, 590 4, 501, 678 4, 221, 588 378,848 112, 242 40,436 12, 092,382 

Washington 538 79 637 

Wisconsin 8,735 5,010 4,221 3,659 9, 468 304 31, 397 

Total 20, 444, 551 40, 275, 918 29, 392, 847 2, 351, 560 846, 870 : 729, 956 94, 041, 702 

See footnote 1, tab e 53. 

See footnote 2, table 53. 

See footnote 3, table 53. 

TABLE 55 .-Production:1Rectified spirits and wines, by kinds and by months, fiscal 

year 1952 

[Proof gallons] 

Month Whisky Gin 

Cordials 

and 

liqueurs 

Brandy Vodka Other Total 

July 5, 836, 989 299,679 189,079 88,491 41, 517 28,029 6, 483, 784 

August 6, 901, 135 428,677 279,031 110, 972 102,231 20,987 7, 841,033 

September 9, 500, 638 352,039 319, 353 105,076 83, 792 20,780 10, 381, 678 

October 11, 271,178 475, 313 507,566 258,108 95, 714 37, 445 12, 695, 324 

November 8, 520, 785 311, 592 400, 698 194,481 86,619 36,078 9, 550,248 

December 8, 515, 568 258, 395 313, 977 143, 749 89,135 33,660 7, 354.482 

January 4, 347, 755 190, 477 304, 699 128, 178 94,123 34, 891 5, 100, 073 

February 5, 410, 463 217, 574 221, 025 119, 869 73, 039 48,906 6, 093, 876 

March 6, 185, 702 368, 002 245, 584 108, 427 133, 316 48, 607 7, 089, 638 

April 6, 037, 149 362,458 239,593 123,997 125,894 55,269 6, 944, 360 

May 6,468,541 430,716 241,981 113,826 117,860 49,385 7, 422, 309 

June 

Total 

6,199,993 416, 788 220,389 121, 716 68,326 48,921 7, 024, 133 

83, 145, 894 9,109, 710 3, 482, 925 1, 616, 890 1, 109, 561 2462, 958 93, 927, 938 

For production of distilled spirits at regis ered distilleries, see table 35. 

Represents 2,294 proof gallons of alcohol, 22,694 proof gallons of high-proof spir ts, 65,368 proof gallons 

of rum, 91,219 proof gallons of wines, 5,395 proof gallons of unclassified spirits, and 275,988 proof gallons of 

products for exportation. 

TABLE 56.-Production: 1 Rectified spirits and wines, by kinds and by States, and 

premises operated, fiscal year 1952 

[Proof gallons] 

State Whisky Gin 

Cordials 

and 

liqueurs 

Brandy Vodka Other Total 

Number 

of plants 

operated 4 

California 1, 628, 394 276, 506 39, 651 864, 355 293,114 81, 349 3,180, 369 

W-IhM0 4,+ . 9rNO4 Z.001--RN. 

Colorado 1,181 854 1, 148 3, 183 

Connecticut 218, 362 103,995 223, 359 718,002 15, 703 1, 279, 421 

Illinois 12, 924, 493 511,026 96,702 37, 134 96,603 13, 665, 958 

Indiana 21, 321, 944 8, 371 238,169 191, 747 28, 767 36, 071 21, 825, 069 

Kentucky 16, 211, 886 625 17,939 53,406 11,575 16, 294, 931 

Louisiana 894 3, 573 1, 225 5, 692 

Maine 10, 570 5, 508 2, 981 19, 059 

Maryland 11, 279, 119 14, 715 68, 153 60 33,303 11, 395, 440 

Massachusetts... 1,014, 241 390,854 600,484 44,738 5,783 57,149 2, 113, 247 

Michigan 436, 131 10, 361 2, 299 39, 550 988, 341 

Minnesota 15, 200 97,847 2, 107 754 2,699 118, 607 

Masotti 2, 805 1,399 203,484 4, 515 212, 203 

New Jersey-_. .. 210, 854 3, 019, 220 323, 482 10, 899 6, 324 31, 609 3, 602, 383 

New Mexico 923 198 1, 121 

New York 4, 084,884 33, 742 94, 877 27, 197 7, 490 8, 107 4, 256, 297 

Ohio 3, 007, 384 7, 353 284, 463 53, 527 5,567 11, 775 3, 370, 069 

Pennsylvania.... 11, 210, 043 246,528 320,419 261,853 5,026 20,993 12, 064,862 

Washington 191 28 401 620 

Wisconsin 3, 420 16,307 1,840 9,499 31,066 

Total 83, 145, 894 4,109, 710 3, 482, 925 1, 616, 890 1,109, 561 +462, 958 93, 927, 938 169 

For production of distilled spirits at registered distilleries, see table 36. 

Represents number operat d during any part of the year. 

x See footnote 2, table 55. 
218 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 57.-Summary: Materials used for rectification and production of rectified 

spirits and wines, and premises operated, fiscal years 1936 to 1952, inclusive 

[Proof gallons] 

Fiscal year ended June 30- 

Materials used for rectification 

Alcohol Spirits Whisky Brandy Other Total 

1936 18, 002, 394 O 14, 072, 589 172, 408 569, 348 32, 816, 739 

1937 29, 258, 533 ) 15,123, 437 208,962 658, 041 45, 248, 973 

1938 29, 626, 345 (4) 13, 573, 665 248,548 539, 288 43, 987, 846 

1939 17, 522, 484 11, 848, 021 13, 554, 212 250, 514 507,411 43, 682,64Z 

1940 17, 475, 958 13, 901,129 15,295, 513 321, 911 586, 877 47, 581, 388 

1941 22, 844, 540 13, 391, 833 17, 021, 767 563, 257 687,775 54, 509,172 

1942 19, 675, 212 25, 892, 987 20, 650,946 904.227 897,793 68, 021,165 

1943 1, 734, 604 35, 690, 096 29, 037, 012 2, 901, 863 1. 657, 855 71, 021, 430 

1944 2, 331, 970 25, 160, 722 32, Ill, 417 2, 772, 289 5, 557, 375 67, 933, 773 

1945 21, 185, 331 44, 366, 831 40, 848, 886 3, 417, 792 9, 766, 036 119, 589, 876: 

1996 42, 301,841 51, 399,168 45, 829, 758 3, 939, 793 5, 003, 234 151, 473, 794 

1947 42, 285, 350 57,106, 092 43, 692, 046 2, 475, 048 3, 070, 329 48, 628, 865 

1948 33, 674, 979 49, 916, 952 39, 596, 883 1, 067, 008 1, 319, 933 25, 575, 845 

1949 35, 824, 521 42, 192, 873 38, 117, 617 1, 560, 360 1, 276, 490 18, 971, 861 

1950 34, 092, 237 37, 119, 549 33, 269, 402 1, 818, 176 1, 651, 908 07, 951, 272 

1951 34, 675, 480 95, 893, 475 37, 801, 722 2, 294, 496 1,864,185 22, 529, 358 

1952 20, 449, 551 40, 275, 918 29, 392, 847 2, 351, 560 1, 576, 826 94, 091, 702 

Fiscal year ended 

June 30- 

Production 

Number 

of plants 

Whisky operated Gin Cordials 

and liqueurs Brandy  - 

Other Total 

1936 21, 726, 565 6, 767, 295 3, 117, 552 93, 435 743,959 32, 448, 806 379 

1937 31, 586, 870 8, 147. 844 3, 812, 852 79,321 684,085 49, 310, 972 340 

1938 32, 675, 622 7, 663, 863 2, 721, 758 33,824 461,883 43, 559, 9511 304 

1939 33, 593, 409 7, 231, 564 2, 192, 964 57,549 325, 769 43, 401, 295 284 

1940 37, 977, 224 6, 866, 097 2, 437, 706 74,372 301, 171 17, 656, 570 255 

1941 44, 317, 166 6, 764, 707 2, 642, 178 184,835 348,712 54, 157, 628 245 

1942 55, 961, 730 7, 597, 941 3, 228, 135 366,321 616,776 67, 770, 903 232 

1943 60, 794, 623 2, 965, 280 3, 965, 502 1, 361, 541 1, 037, 875 70, 124, 821 215 

1944 57, 862, 477 898,304 3, 935, 429 1, 515, 052 3, 425, 143 67, 686, 405 229 

1945 101, 645, 0067,057,837 7,057 6, 696, 947 1, 677, 186 1, 796, 413 18, 863, 389 259 

1946 124, 727, 150 11, 497, 751 11, 308, 854 1, 942, 399 1, 402, 734 150,878,888 261 

1947 130, 700, 615 10, 547, 373 4, 545, 503 1, 677, 869 1, 088, 993 148,560,353 254 

1948 114,016, 903 7, 267, 090 2, 207, 673 654,478 686,678 125,732,822 237 

1949 107,781 521 6, 601, 847 2, 817, 735 I, 042, 745 710,764 118,959,612 209 

1950 94, 907, 517 7, 784, 318 2, 916, 210 1, 199, 163 1, 021, 275 107,861,483 178 

1951 108, 152, 351 7, 790, 752 3, 518, 490 1, 587, 452 1, 324, 299 122, 373, 347 17t 

1952 83,145, 894 4,109, 710 3, 482, 925 1, 616, 890 1, 572, 519 93, 927, 938 16£ 

] Included with alcohol. 

STATISTICAL TABLES 219 

VII. CONSUMPTION OF DISTILLED SPIRITS 

[Distilled spirits bottled by rectifying plants, tax-paid bottling houses, 

and internal revenue bonded warehouses] 

TABLE 58.-Bottling: Distilled spirits (rectified and unrectifted) bottled for consumption, fiscal year 1952 

[Wine gallons] 

Kind 

Unrectified products 

Bottled-inbond 

products 

Grand total Bottled at 

rectifying 

Plants 

Bottled at 

tax-paid 

bottling 

houses 

Total 

Whisky 21, 536, 495 9, 485, 365 31, 021, 860 9, 035, 521 136, 087, 197 

Brandy 494,413 214, 237 708,650 45,418 2, 671, 782 

Runs 499,929 45, 503 545,432 1,415 620, 259 

Gin 4, 029, 397 4, 817,237 8, 846, 634 13, 320,158 

Cordials and liqueurs 5, 353, 603 

Vodka 226,332 226,332 1, 541, 008 

Alcohol 55,433 1,123 56, 556 56, 556 

Other spirits 29, 448 519 29, 967 36,904 

Total I 26, 871, 447 a 14, 563, 984 41, 435, 431 a 9,083, 354 159, 687, 467 

[ Includes Imported distilled spirits used for rectification as ollows: 2,086 proof gallons of whisky, 23,676 

proof gallons of brandy, 63,760 proof gallons of rum, 2,288 proof gallons of gin, 745 proof gallons of cordials 

and liqueurs, and 20 proof gallons of unclassified spirits. 

Represents 777,779 wine gallons of blends of whisky 4 years old or older, 296,059 wine gallons of other 

blended whisky, and 94,955,978 wine gallons of spirit whisky. 

a Includes imported rectified distilled spirits used in bottling as follows: 54 proof gallons of brandy and 

841 proof gallons of cordials and liqueurs. 

Includes imported unrectlfied distilled spirits used in bottling as follows: 288,087 proof gallons of whisky, 

223,863 proof gallons of brandy, 254,724 proof gallons of nun, and 6,238 proof gallons of unclassified spirits. 

Includes imported unsaddled distilled spirits used in bottling as follows: 55,792 proof gallons of whisky, 

63,631 proof gallons of brandy, 4,747 proof gallons of rum, 505 proof gallons of gin, and 39 proof gallons of 

unclassified spirits. 

6 Represents tax-paid withdrawals of distilled spirits bottled in bond. 

Exclusive of 226,856 wine gallons of rectified distilled spirits and 112,003 wine gallons of unrectified distilled spirits bottled for exportation and 313,896 tax gallons of whisky, 2,219 tax gallons of gin, and 195 tax 

gallons of brandy bottled in bond for export. 

Kind 

Rectified products 

Bottled at rectifying plants 

Bottled at taxpaid bottling 

houses 

Total 

Whisky 86, 620, 651 9, 409,162 2 96, 029,816 

Brandy 1, 916, 601 1, 113 1, 917, 714 

Rum 73, 412 73, 412 

Gin 4, 471, 815 1, 709 4, 473, 524 

Cordials and liqueurs 5,195, 527 158,076 5, 353, 603 

Vodka 1, 307, 039 7, 637 1, 314, 676 

Alcohol 

Other spirits 6, 937 6, 937 

Total 99, 591, 985 1 9, 577, 697 109,169,682 
Month 

Grain and grain products 

Malt Corn Rice Wheat Barley 

July 270, 137, 808 89, 993, 549 33, 747, 801 624,465 45, 975 

August 268, 084, 457 91, 215, 267 34,336, 645 635,975 94, 868 

September 209, 135, 183 70, 441, 505 27, 941, 920 485,155 62, 780 

October 203, 420,997 71, 545, 500 23, 317, 388 533, 650 68,140 

November 181, 295, 012 61, 395, 124 25, ISO, 851 449,730 42,500 

December 187, 467, 966 65, 535, 906 22, 199, 937 441, 610 45, 790 

January 206,970, 607 72, 162, 106 25, 186, 164 496,720 67, 970 

February 195, 991, 549 68, 437, 715 25, 322, 172 443,010 47,900 

March 215, 828, 536 75, 720, 759 28, 418, 702 454, 340 53,100 

April 219, 130,989 79, 163, 297 26, 903, 165 496, 680 51, 360 

May 

lune 

233,376, 190 

262, 679, 683 

81, 

93, 

345, 

416, 

376 

709 

31, 493,182 

33, 287, 615 

133,200 

641, 550 

60, 440 

62,005 

Total 2, 653, 518, 877 920, 372, 813 337,305,542 6, 236, 085 802,828 

Sorghum Total 

grain 

77, NB 399, 727,198 

84, 200 394,451, 412 

308,066, 593 

298, 885, 675 

268, 333, 217 

10, OM 275, 701, 209 

143, 900 305, 027, 367 

100,000 290, 342,346 

98, 950 320, 574, 387 

98, 800 325, 844, 291 

8,400 346, 816, 788 

207,896 390, 295, 362 

829, 650 , 919, 065, 796 

220 REPORT OF COMMISSIONER. OF INTERNAL REVENUE 

TABLE 59.-Summary: Distilled spirits (rectified and unrectified) bottled for 

consumption, )fiscal years 1941 to 1952, inclusive 

[Wine gallons] 

Fiscal year ended June 30- Whisky Brandy Rum Gin 

1941 119, 548, 126 2, 010, 621 1, 378,192 13, 316,856 1942 136,038, 633 2, 340, 879 1, 813, 449 14, 396, 909 1943 135, 273, 247 4, 493,152 2, 917, 579 6,323, 482 1944 96, 430, 899 4, 538,048 12, 994, 466 7, 461, 770 1945 143, 171, 432 4, 053, 886 2, 024, 582 10.009, 224 1946 163, 796.884 3, 612, 167 951,314 19, 912, 036 1947 166, 218, 217 2, 835, 939 688.880 18, 615, 945 1948 149, 232, 495 1, 242, 383 9(0.298 11, 409, 038 1949 142, 633, 709 1, 888, 404 389, 038 11, 355. 715 1950 139, 653, 133 2, 205, 635 602, 706 13, 515, 693 1951 167, 508, 763 2, 832,056 680, 775 17, 494, 804 1952 136, 087,197 2, 671, 782 620, 259 13, 320,158 

• 

Fiscal year ended June 30- Cordials and 

liqueurs Vodka Alcohol Other spirits Total 

1941 3, 754, 858 (I) 341, 125 151, 872 140. 501, 659 1942 4, 755, 808 Gi 232,167 170, 735 159, 748,580 1943 5, 994, 371 (1) 45,265 255,612 155, 302. 738 1941 5, 949, 531 (1 ) 35, 916 2, 791, 290 130, 201, 920 1995 9, 166, 562 (1) 31, 502 1, 285, 811 169, 742, 999 1946 13, 985, 185 (I) 132, 697 1, 176, 418 203, 566, 700 1047 6,702,954 iin, 119, 614 324, 906 195, 531, 435 1948 3, 380, 369 (2) 77, 901 146, 199 165, 888, 683 1949 4, 315, 258 (2) 62, 342 286, 778 160, 931, 244 1950 4, 990, 533 (2) 73,539 575,809 161, 117, 048 1951 5, 411, 974 995, 696 98, 782 45,170 195,068,326 1952 5, 353, 603 1, 541, 008 56, 556 36, 904 159, 687, 487 

I Prior to 1941 consumption was represented by tax-paid withdrawals. See table 52. 

2Included with "other splr ts." 

VIII. DENATURED RUM 

[Relates to denatured rum produced by dist'llery denaturing bonded warehouses] 

TABLE 60.-Summary: Rum used for denaturation, and production removals, and 

stocks of specially denatured rum at disti lery denaturing bonded warehouses, by 

months, fiscal year 1952 1 

Month Rum used for 

denaturation 

Specially denatured rum 

Production Removals Stocks end of 

month 

Proof gallons Wine gallons Wine gallons Wine gallons July 173, 306 116, 687 107,839 51, 544 August 169, 251 113, 955 123, 40, 764 September 158, 871 106, 970 III, 3 35, 602 October 144,920 97,575 91, 636 40, 877 November 147, 753 99, 482 115, 427 24,034 December 120, 882 81, 389 66,197 38, 7W January 152, 003 102,343 92, 075 48, 181 February 139,164 93, 699 89,794 51, 494 March 

April 

126, 450 

151, 517 

85,138 

102, 017 

93,133 

93, 800 

42, 866 

50,448 May 122,449 82,444 100, 207 32, 003 June 156,963 105, 683 87, h)2 48, 922 

Total 1, 763, 529 1,187,382 1, 172, 845 48,929 

I Formula 4 (Appendix to Regulations No. 3) is used in all denaturation of rum. 

STATISTICAL TABLES 221 

TABLE 61.-Summary: Rum used for denaturation, and production, removals, and 

stocks on hand June 30, of specially denatured rum at distillery denaturing bonded 

warehouses, by Stales, fiscal year 1952 1 

State Rum used for 

denaturation 

Specially denatured rum Number of 

distillery 

denaturing 

bonded 

warehouses 

operated 2 

Production Removals Losses Stocks 

Tune 30 

Kentucky 

Massachusetts 

Total 

Proof gallons 

1, 131, 798 

631.731 

Wine gallons 

762, 061 

425,321 

Wine gallons 

749, 923 

422,922 

Wine gallons 

5, 875 

3,037 

Wine gallons 

27, 584 

21,338 

1 

1 

1, 763, 529 1, 187, 382 1,172, 845 8, 912 48,922 2 

1See footnote 1, table 60. 

Represents number operated during and part of the year. 

TABLE 62.-Operations in specially denatured rum by manufacturers: By States, 

fiscal year 1952 

[Wine gallons] 

State Received Used in 

manufacturing Stocks June 30 

Number of . 

manufacturers 

operating 

Florida 8,524 8,734 232 

'r9 to0. PPNWH m

Indiana 250 500 50 -N 

Kentucky 318,790 318,029 21, 612 

Michigan 2, 338 1, 878 326 

Missouri 34, 313 35, 669 1,405 

New Jersey 546 518 50 

New York 8, 796 8, 615 584 

North Carolina 421, 573 413, 046 29, 956 

Ohio 33,718 31,793 56 

Pennsylvania 14,303 14,478 933 

Tennessee 550 564 68 

Virginia 342,527 338,826 24,188 

West Virgbda 1,800 1,702 308 

Total 1,188, 028 1,174, 352 79, 768 53 

1Represents number operating during any part of the year. 

It FERMENTED MALT LIQUORS AND CEREAL BEVERAGES 

[Produced by breweries] 

TABLE 63.-Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by months, fiscal year 1952 

[Pounds] 
222 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 63.-Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by months, fiscal year 1952-Continued 

[Pounds] 

Month 

Soybeans and 

soybean 

products 

Sugar and 

situps 

Hops and hop 

extracts 

Cassava and 

cassava 

products 

July 325, 044 13, 078, 077 3, 620, 851 3, 338 August 334, 614 12, 887, 328 3, 589, 408 September 249, 250 9. 562,136 2, 796, 302 October 247, 982 10, 302, 896 2, 707, 398 November 204, 987 8, 446, 822 2, 429, 926 1, 333 December 213, 371 8, 486, 272 2, 469, 810 

January 242,498 9, 924, 332 2, 739, 631 February 236, 760 8, 480, 935 2, 595.795 2,003 March 245, 559 8, 832, 281 2, 856, 700 April 259,857 9, 300, 933 2, 900, 064 May 250, 750 9.692. 263 3,068, 194 

rune 288, 979 11, 435, 742 3, 459, 928 2,002 

Total 3, 099, 651 119, 930, 017 I 35, 233, 507 8,676 

1 Represents 35,196,731 pounds of hops and 36,776 pounds of hop extracts. 

TABLE 64.-Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by States, fiscal year 1952 

[Pounds] 

State 

Grain and grain products 

Malt Corn Rice Wheat Barley 90rghumin gra Total 

Arizona 

: California 

Colorado 

Connecticut 

Delaware 

District of Columbia 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Montana 

Nebraska 

Nevada 

New Jersey 

New York 

North Carolina 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Rhode Island 

Tennessee 

Texas 

Utah 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

Total 

5, 471, 800 

153, 896, 768 

21, 783, 098 

3, 898, 640 

1, 352, 906 

3,481,760 

10, 408, 795 

1, 635, 600 

2, 521, 007 

1, 734, 372 

112,220, 865 

71, 377, 957 

2, 332, 514 

59, 402.450 

57,197, 269 

69, 861, 420 

43,051, 201 

133, 109, 801 

83. 798, 996 

243,604,898 

7, 011, 468 

26, 599, 460 

.. . 

219, 132, 244 

346, 202, 456 

1, 503. 645 

138, 506, 8M 

1,477.600 

11, 210, 950 

241, 237, 977 

22, 970, 550 

3,660,840 

57, 231, 295 

5, 755, 414 

4, 775,350 

58,057, 765 

1, 832, 800 

922, 655, 800 

1, 039, 900 

993,550 

48, 874, 230 

1, 527, 790 

372, 800 

3, 793, 640 

604,10 

511,698 

62. 480, 830 

31, 259.605 

21, 578, 725 

17, 307, 000 

4, 231, 200 

61, 456, 990 

26, 071, 087 

33, 364, 102 

6, 995.200 

76.021, 000 

142, 003, 579 

659,600 

51, 123. 567 

2. 336, 100 

70, 493, 164 

903, 500 

21, 652, 090 

921, 255 

23, 043, 343 

165, 292, 220 

125,900 

995, 778 

1, 448, 900 

690,550 

781, 400 

25, R94, 380 

2, 389.400 

800,100 

489,580 

8, 686, 320 

2, 214. 500 

664,3%0 

18, 053, 930 

11,015, 095 

41, 872 

730,100 

8,189, 810 

9, 715, 263 

8. 171, 390 

91, 206, 970 

5, 989, 421 

21, 456, 380 

36, 948, 832 

14, 426, 174 

10, 953, 893 

699,100 

3, 984, 344 

78, 559, 700 

792.900 

5, 400 

80, 200 

461, 461 

136, 000 

9, 491. 700 

7, 126. 767 

1,800 

1, 595.600 

5, 080, 600 

818, 930 

82, 910 

500 

158,000 

304, OW 

2, 423, 235 

356,900 

2,834.3.50 

36, 500 

5, 400 

1.000 

95. 200 

21, 000 

1, 000 

51, 940 

20,700 

11,700 

84,955 

10,000 

500 

83, 600 

404,883 

13,520 

120, 030 

10,000 

21, 700 

728, 150 

__ 

69, 800 

7, 268, 250 

220, 824.928 

34, 325, 983 

4, 930, 918 

1, 772, 978 

4, 931, 660 

19, 230, 535 

2, 320, 600 

3, 494,126 

2, 324. 922 

175, 461, 095 

 102, 773, 062 

3,113, 914 

85, 472.875 

82, 694.079 

95, 988, 755 

52, 311,664 

202, 733, 681 

116, 995, 350 

368, 175, 970 

9, 484, 958 

39, 084,081 

811,450 

318. 609, 624 

528, 358,192 

2, 165,045 

204, 818, 420 

1, 967, 180 

15.132, 650 

325, 530, 084 

31, 752, 070 

5, 2144, 440 

83, 933, 785 

7, 495, 599 

7. 019, 850 

85. 098. 972 

2, 497, 180 

666, 627, 750 

1, 248, 710 

2 653, 518, 877 920, 372, 813 337, 305, 542 6, 236, 085 802, 828 829, 650 3, 919, 065, 795 

STATISTICAL TABLES 223 

TABLE 64.-Materials: Used in production of fermented malt liquors and cereal 

beverages, by kinds and by States, fiscal year 1952-Continued 

Wound ] 

State 

Soybeans 

and soybean 

products 

Sugar and 

 sirups 

Hops and hop 

extracts 

Cassava and cassava 

products 

Arizona 9, 270 432,880 44, 107 

California 270,479 2, 723, 837 1,996,9;0 ___, 

Colorado 5,217 321,820 4 

Connecticut 33,000 755,802 47,100 

Delaware 5, 028 14,387 

District of Columbia 135, 000 91, 097 

Florida 

Georgia . 

21, 375 1, 549, 526 

308, 200 18, 433 

138, 146 8,676 

Hawaii 9, 844 446, 208 30, 225 

Idaho 6,548 90 18,061 

Illinois 345, 641 2, 254, 495 1, 465, 508 

Indiana 1, 600 703, 032 905,171 

Iowa 2, 705 94, 373 30, 055 

Kentucky 130,300 580,450 770,317 

Louisiana 9, 592, 928 777,951 

Maryland 1, 110 3, 499, 623 913, 706 

Massachusetts 222,925 10, 877, 876 626, 917 

Michigan 6,130 3, 501, 295 1, 754, 359 

Minnesota 4, 688 3, 448, 644 978, 367 

Missouri 73,240 9,457,099 3,682 397 

Montana 4, 359 452, 200 87, 280 

Nebraska 1, 158, 900 357,846 

Nevada 673 8,090 

New Jersey 52, 930 19, 779, 523 3, 028, 453 

New York 244, 650 9, 400, 386 9, 930, 258 

North Carolina 301,032 3 19,188 

Ohio 170,941 5, 761, 714 1, 717, 970 

Oklahoma 15, 553 16, 649 

Oregon 17,400 289,114 108,593 

Pennsylvania 43, 798 32, 592,115 3, 096, 323 

Rhode Island 35,850 3, 066, 030 292,642 

Tennessee 107, 800 43, 490 

Texas 780 88,300 655,444 

Utah 100 64,380 

Virginia 14,095 413,606 65,645 

Washington 65,839 2, 701, 225 735,865 

West Virginia 3, 900 367, 519 26,330 

Wisconsin 1, 289, 631 2, 627, 397 5, 383. 605 

Wyoming 16. 000 435, 900 20, 378 

Total 3,099, 651 119, 930,017 1 35,233,507 8,676 

I See footnote 1, table 63, 

rs,and brewe riesoperated,fiscal a E 5. 

ti 

t'ei• 

g 

03 - g 

is 

g o g 

o g 

.2 

OJ 

▪ ''' `f g

70 

C 

e 

so 0 

a 

"es

ci 

 -u 

p

tl 

0 

51 

Pl 

TABLE 68.-Summary: Production, withdrawals, and stocks of cereal beverages," 

by months, fiscal year 1952 

[Barrels of 31 gallons] 

Month Production Withdrawals Stocks end of 

month 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

4,055 

2, 903 

3, 171 

886 

1, 51.18 

1,177 

2,176 

2,070 

3,307 

3,096 

3,162 

2,737 

2,990 

3, 369 

2, 513 

1, 805 

1, 525 

1.163 

1,455 

2,041 

2, 675 

3, 461 

2,995 

2, 913 

2,191 

L 580 

2,190 

1,205 

1,267 

1,253 

1,926 

1, 916 

2,495 

2,063 

2,165 

1,969 

30,328 28, 905 1, 969 

Containing less than one-half of 1 percent of alcohol by volume. 

TABLE 69.-Summary: Production, withdrawals, and stocks on hand June 30, of 

cereal beverages,' and plants operated, by States, fiscal year 1952 

[Barrels of 31 gallons] 

State . Production Withdrawals Stocks June 30 

Number of 

breweries at 

which cereal 

beverage 

transactions 

occurred 2 

Connecticut 4, 203 4,188 

Delaware 305 294 

Illinois 16 15 

Massachusetts 575 563 

Minnesota 8,275 8, 212 615 

Missouri 6,819 6,393 591 

New Jersey 2,780 2,382 558 

Pennsylvania 95 30 

Virginia 230 226 

Wisconsin 7,030 6,632 175 

Total 30, 328 28, 905 1, 969 11 

See footnote 1, table 68. 

3 Represents number operated during any part of the year. 

226 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 227 

V4 0s 3 5 

Ztt 

il4 MIggran3aTiM, 

iA 

MUUMEERnceliqg 

L'F.,egS4SOMF,A2a 

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3 

Einali gEgRiniRE 

ivA"flore.;EgLV,P81 

.-Z,4-;.4' 4'.c.'-4'cie5ci3i'c5c56i6i3i•ic-sWithdrawals Grand total 

R'a A g 2 4 Ri R F 3 el a ig i F3 E k- agnWiggliV 

gl.Igggiegggtigg 

Tax-free 

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Tax-paid 

I010,L 

ggirMIE=URC*FEni 

iggit.e:xwgdsIesol -..wor-oo.F,A2sr,n?, 

AltggiEn•ffp:igggggi 

Inbarrels 

and kegs 

EangiRgHigaMAR 

gsgF:sggigga .mr4.00';.,.,.s,.nglit.g 

g7;ffelgtziggg6igagg4ci 

Inbottles 

and cans 

RRREREPaggbirirg 

EI1001515MAIII 

06tgtg- ii:signgi- ggsg 

, 

EMERF2§Vaintign - Occat5igggagg 

gliKtggrsigt.;argigg 

Fiscal yearended June30— 

iiEligengrieEtsgg 229047-53 16 
o 

C 

471 

C 

CQ 

C 

228 BEFO BT OF COMMISSIONER OF INTERNAL REVENUE 0 1 18

=.11

ginaM5,4 

EREEEligAER; 

1-- -gggfggla-- e‘ o 

e tet ' 009 MI '

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gir7.1 

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EgEREEREENE 6;..;c64 

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22, 527, 049 

 0 llDi

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Apricot 

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Mg c.), Peach 'e 111 

la o

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96 1 OLt ' , 

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1 3in 2°91 RR 

390 

gggEgtof 

EFOCREIR 

gg 

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1 08 ' 1 DE

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Peaches 

ERIEEEEE EE 

1 Ea ' ' 190

1 1 r ' ln ea 13 

g Sna

EgEREER gEE 

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2, 731, 200 

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gEgagEggREg 

2 8, 742,793 

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geeegaegR 

PRWaN§ 

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MARE§Egm 

a.4a.-7 

13 ' 3.111 

sm, ewe. i

Grapes 

6fleom,..-= 

orr.:4.:eeagggegg 

ERTEREEREFEE 

.id-gvgar-7 . _ 

3, 117, 032, 018 

July 

August September October November De cember 

January 

February March 

April May 

June 

Total 

Month 

July Aug ust September October November December January February Mar ch April May June 

Total 

STATISTIC

Total 

EgEREFIREggSgs

EigEgREFEREEEEFE

,..:sss 

All other 

States 

g 

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gggrs, 

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. 

F 

._ ss 

Washington 

0.2g cc 

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g 

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E!E. 

o l o tro2

g.Ei 

cc 

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10 011

1 

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NewYork 

ci 

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ti n 

a 

2 

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NewJersey 

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A. Fruit (pounds) 

tl 
TABLE 73.— Production: ta,by States,fiscal year 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

:71.

.7.6creciegs-tadeece 

EgElElgg42E; 

gREIEURRSEg 41E404E2Eg4 

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aggrWilig 

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S a„Taie4,4aci.;4-T-4- 

REE4IREELERE -a4gteaap:m-ga 

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Treatment of wines 

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'1

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Resulting 

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Resulting 

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g4g gEgg 

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Grand total 

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Distilling 

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4 

co , 

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gARE 

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E4gR 

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Over14 and 

not over21 

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hol 

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Not over14 

percentalco- hol 

R'n 

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State 

t 

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230 
STATISTICAL 

Tax-freewithdrawals 

g 

3 

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4.4- .1e ,15 

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ccc 

RR'RM 

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113 

2. 

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4 

Tax-paid withdrawals 1 

F 

InEFEZERUM

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FR 

-"I "' '' °O.t t' E 2 

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4. e's'6 

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1 

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2 

232 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

66M

EREEEEEEUEE 

4sggggee444 

EgiagEaM 

EMEA'ARFREJ 9,11.6:4 

raggaalil 

AIRREEREERRE 

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..„......... 

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ti.°

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Tax-paid withdrawals Tax-freewithdrawals 

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§ 

eq 

2 

eq 

04R827,121

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g 

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t,R24a48 5&).° --oDtoNO-N.0, 0 

3 

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FEEERER eq 
Stocksend of month 4 

, d Fle

EMAMEHE

 1VggE

, 7griM ggesdgg,r 

--g4AgiR 

6

g;.. 

Over 21 and 

not over 24 

percent 

alcohol 

ea.,;,:eeeeeee•,: 

g,2Fmtss.-n;m 

ee,reeeeexce..:_r_r 

REHP_RUagn 

4, 231,998 

Over 14 and 

not over 21 

percent 

alcohol 

thL6gg

gMlgglig 

9.FIRREiMIN 

,,-ggy fe ...r.i..e., ....7.1 

Not over 14 

percent 

alcohol 

sgasigpfteiggag 

MiggitiSig 

ERMEHEM 

0 95 ' TOE'09 

gt

EUEERAUEM -;47,igtia4 , 

Withdrawals 

, 1 30 3 11

gigggtagM 

EiTigiVagi 

.....

4 m_. 

498,391, 168 

, 13 1-X1 001 e 

.4214.46gaM 

EiiRMEREH 

ue l tag 92$ 

Tax-paid 2 .78, 

4 Month 

July August September October November December January February March April May June 

Total 

Numberof premises 

operated 

Bonded 

storerooms 

and Held 

warehouses 

m 

Bonded 

wineries 

.... 

- 

e0c, -.00

Stocks June30 1 

1 30 11

ERRRRREMIR

gggggirea

Over 21 and 

not over24 

percent 

alcohol 

ee 

RE 

. . e 

F:. 

Over 14 and 

not over 21 

percent 

alcohol 

URRRWARREH

agggrggeO

Not over14 

percent 

alcohol 

MEM= REg

,01

wigialgEEHR

cl:: ,:s. g-

e 

Withdrawals 

Total 

tiff 

REMEH gM

g

g 

FARli 

.7 

to crifl 

gl.i 

tis. °RR c‘ 

?I gAngERRIRgRnRR 

mr eg Ficlgrctri 5e. ot .ot. .,.. ..t 

Tax-paid 1 

WitUtlig 

Oggtg 

grAMFAMMURRIEELRE 

MilggtftWi ea gMlgggg e a 

903 

3 Z1

6 559' ' 659

EE 

1. 

ads 

§En 

''i 

gg 

r 

RR 

g 

ms e

1P

1 : 

. a c 

"S'e -a 

o 

1 

g,m24-6.0

c486Ap7.8g

bymonths,fiscal year 1952 

wines,and premisesope rated,by States,fiscal 

[Winegallons] 

TAB LE 77.— Summ ary : 

234 REPORT OF COMAUSKONER OF INTERNAL REVENUE 

STATISTICAL 

TABLE 82.

-Summary: Production, withdrawals, losses, and stocks of aperitif wines 

other than vermouth, by months, fiscal year 1952 

[Wine gallons] 

Month Product 

lion 

Withdrawals 

Losses Stocks end 

of month 

Tax-paid I Tax-free Total 

July 32, 394 13, 381 108 13, 489 405 14, 273 

August 12, 909 31, 872 6, 400 38, 272 46 88, 678 

September 157 4, 593 11, 684 16, 277 222 72, 336 

October 11, 991 14, 171 30 14, 201 74 70,066 

November 20,586 13,825 13, 825 88 76,760 

December 702 19, 982 144 20,126 634 56, 642 

January 44,097 10, 523 42 10,565 74 90,040 

February 29, 098 21, 828 21, 828 189 97, 123 

March 30,969 58, 311 120 58,431 334 69,328 

April 10, 822 10, 822 45 58, 460 

May 20,356 7,563 7,563 241 71,011 

June 31, 872 11, 104 11, 104 324 91, 455 

Total 235, 131 217, 975 

1 18, 528 236, 503 2, 654 91, 455 

I Represents wines over 14 and not over 2 percent alcohol. Tax rates on and after Nov. 1, 951, 67 cents 

per wine gallon on aperitif wines other than vermouth over 14 and not over 21 percent alcohol before Nov. 

I, 1951, 60 cents. 

Represents 432 wine gallons removed for export, 18,084 wine gallons removed for use in the production 

of still wines, and 12 wine gallons removed for use in the production of vermouth. 

TABLE 83.-Summary: Production, withdrawals, losses, and stocks on hand June 30, 

of aperitif wines other than vermouth, and number of premises operated, by States, 

fiscal year 19,52 

[Wine gallons] 

State ProducCon 

Withdrawals 

Losses Stocks 

June 30 

Number 

of prem-

!see operated 3 Paid

TaxI Tax-free Total 

California 

Connecticut 

New York 

Ohio 

Pennsylvania 

Total 

1, 811 

1, 567 

231, 753 

1, 254 

2, 755 

212,966 

1,000 

18,084 

12 

432 

19, 338 

1,000 

2, 767 

213, 398 

657 

245 

244 

55 

1,453 

7, 579 

7,580 

6, 741 

2, 210 

167,345 

235, 131 217, 975 3 18, 528 236, 503 2, 654 191, 455 13 

I See footnote 1, table 82. 

Represents wineries, bonded storerooms, and field warehouses that operated during any part of the year. 

See footnote 2, table 82. 

238 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

STATISTICAL TABLES 239 

ti 

so 

tC 

Gc 

t end of table. 

Still winesand distillingmaterials(winegallons) 

Numberof premises 

operated 

Bonded 

storerooms 

and field 

warehouses 

VA 

gA LC a 

PRFEI§Ealii5E-H3 

u. °a o ' w 

., 

MRP:TIME.MEERFAi 

24,-,8;c P28R. 282. 20inS 

ggKe ... ggg'igtigg 

,iM 

a0, 

.4-f, E.22 I. n 

MUFAMER@ERERR 

WOMIMWEI77106 

744tgg364olgnagge.e.F4gtlj 

Production 0, t3 

MiiMZIERPPLCIPn 

MgH122HAnthS12P8 

!:-.5grattfirl

'Il416 

---.. .bgi 

Et. 

.IZ S 

Zs F rS ' Sc q2°gt-H E R 

. „ .. _ . 

gWES:H§64 

ggEIWAI 

Still wines 

rows, 

-... ...,c,,. V* 3 1 :7- 2f_ 71 q 'a 2 

'4='Pngiflg7; occo,cwt..00t., 

Icit,fggflgggcla 

Over1 9 and 

not over21 

percent 

alcohol 

LI lno

t_nra so tz" ..

!:ZSZE2SWala ,..r 

Not over14 

Percent 

alcohol 

HVilliPM 4, S

6e-scst.:occ7c- ej

74/ 

222'SP/O8g.,... 

rgg.s:ggage 

Fisca l yearended June30— 

700

461 

1 

6461 

LtS

SPST 

T 

PPP

9461 

( 

 MIT 

31,61 Ota

T111 

l 

826E61 

6T 

 5E61 

986T too l 1261 
STATISTICAL TABLES 241 

Kind 

Industrial 

alcohol 

Plants 

Registered 

distilleries B -mw.enes 

Vinegar plants 

using the 

vaporizing 

process 

Total 

Grain and grain products: Pounds Pounds Pounds Pounds Pounds 

Malt 80, 630, 692 214,016, 256 2, 653, 518, 877 731,866 2, 948, 897, 691 

Corn 414, 938, 805 1, E9, 933,179 963, 372, 813 6, 397, 240 2. 551, 142,037 

Sorghum grain 420, 863, 405 217, 429, 503 829, 650 639,022,556 

Rice 615,140 337, 305, 612 337, 923, 682 

Rye 186.244 235, 095, 095 692, 744 235, 974,083 

Wheat 70, -609, 716 45, 775, 941 6, 236, 085 122, 621, 742 

Mixed grain 64, 432, 333 35, 866, 973 100, 299, 306 

Barley 802,828 802,828 

Total 1, 052, 276, 335 1, 957, 616, 947 3, 919, 065, 795 7, 821, 850 6, 936, 780, 927 

Sugar and sirups 83, 223 119, 930, 017 51, MO 120. 064, 840 

Ethylene gas 69, 499, 741 69, 499, 741 

Hops and hop extracts 35, 233, 507 35, 233.507 

Soybeans and soybean products 3, 099, 651 3, 099.651 

Other materials 2, 312, 159 232, 870 8, 676 72, 363 2, 626, 068 

Galknis Gallons Gallons Gallons Gallons 

Sulphite liquors 254, 882,400 264, 882, 400 

Ethyl sulphate 168, 020, 007 168,020,007 

Molasses 158, 354, 091 2, 447,111 1, 536, 210 162, 337, 412 

Other materials 68, 359, 893 684, DO .69, 044,193 

Products used in redistilla- Proof gallons Proof gallons Proof' gallons Proof gallons Proof gallons 

tion 22, 209, 754 15,876, 693 38, 086, 447 

Exclusive of materials us d at fruit distilleries for the production of brandy and spirits-fruit and at 

wineries for the production of wine. 

XI. VINEGAR 

[Produced by vinegar plants using the vaporizing process] 

TABLE 86.-Summary: Materials used at vinegar plants, and production and stocks 

of vinegar, by months, fiscal year 1952 

Month 

Materials used 

Grain and grain products 

Molasses Citrus waste 

concentrate 

Corn Rye Malt 

July 

August 

September 

October 

November 

Pounds 

530,000 

170,000 

245,000 

330,0011 

375, 000 

Pounds 

60, 480 

19,040 

27, 440 

36, 960 

42, 000 

Pounds 

64,800 

20,400 

29,400 

39, 600 

45, 000 

Gallons 

125, 391 

132, 157 

121,902 

130, 546 

96,202 

Gallons 

88, 575 

72,175 

67,400 

76,800 

73,375 

December 500,280 57,672 60,440 112,065 51, 650 

January 723, 952 80,192 82, 234 160,061 57,375 

February 793,488 84,800 88, 312 119, 721 58,775 

March 825,760 84, 648 95, 048 103. 182 92, 075 

April 740, 760 78, 512 81, 368 142, 145 8,900 

May 586, 640 60, 798 62, 686 148, 066 37, 700 

Rine 576, 360 60,202 62.578 145, 272 

Total 6, 397, 240 692, 744 731, 866 1, 636, 210 684,300 

TABLE 85.-Summary: Materials used for the production of ethyl alcohol, distilled 

spirits, fermented malt liquors, and vinegar, by kinds, fiscal year 1952 1 

240 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

0.0,0m 

tiN 

El 4 04 

gmtc6.6 

co3135. 

qig. gg 

gag: 

n o 

zoo gPi 

:2 

3 

°#1, 

o 

a 

a 

3i2UREMERFUH 

5 

0 

B 

a 

A s o 

a, 

7,28. 

Nam 

spa 

!II 

oPa 

56 

VIIHNMMEUM 

acqgAR2c.a,Igg.12g0Eg 

4,3Mif§giMOinni g

ragala06ggiclOgg 

... ,, M22Bc1S4g1 

oved fromfermenters. 

Sparklingwines 3 atall-pi Vermouth 4 (winegallons) 

a

g 

iK 

Ed id 

P":1 4 .22 .'s 22--9 [2",f 

ZEMERESHUM 

g0:611:401VAg 

EMARMREEgiEU 

=,.:. R5'NZERE§..1Mg60 

giWdOikggiM --4wacdwet-raciciw 

22 ';II R'KRRR2SSS244.t.R 

P, 

E 

0. 

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0 

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a 

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.^cs 

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cs 

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tra 

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o 

ti 

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0

0 

c4 

]. 

5 

0. 

0 

a 

cc 

oo 

ai 

411 MEgiNtikEHOR 

a ca 

A 

8 
3207, 995 

2, 614, 674 

2, 822, 569 

2, 162, 528 

16, 222 

643,819 

2,822, 589 

30, 937, 199 

56, 311 

2, 513, 109 

4, 025 33, 506, 619 4,223 

Distilled spirits used 

in noobeverage 

products Distilled spirits and 

wines bottled especially for export 

Number Amount Amount Amount 

On band July 1, 1951 

Received during year 

Total 

Allowed 

Rejected 

On hand June 30, 1952 

Total 

Distilled spirits exported in original 

packages 

242 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 86.-Summary: Materials used at vinegar plants, and production and stocks 

of vinegar, by months, fiscal year 1952-Continued 

Month 

Materials used-Continued Vinegar 

Chemicals Cane sugar Production Stocks end 

of month 

July 

Pounds 

5,474 

Pounds 

100-grain 

gallons 

891,112 

100-grain 

gallons 

1, 225, 738 

August 6, 637 841,165 I, 090. 264 

September 7, 318 845,948 618. 262 

-October 8, 072 8666,390 727, 144 

November 5, 819 693, 822 811, 659 

December 5,364 642, 145 967, 746 

January 6,137 654, 482 I, 098, 061 

February 5,086 675, 428 1, 251.088 

March 5,088 788, 363 1, 494, 741 

April 6, 498 42, 900 757,420 1, 569, 269 

May 5, 979 8, 700 837,052 1, 669, 596 

June 4, 891 834, 286 1, 678, 730 

Total 72, 363 51, 600 9, 327, 613 1, 678, 730 

TABLE EL -Summary: Materials used at vinegar plants, production and stocks of 

vinegar, and premises operated, fiscal years 1943 to 19,52, inclusive 

Fiscal year ended June 30- 

Materials used 

Grain and grain products 

Molasses 

Corn Rye Malt Wheat Other 

1943 

1944 

1945 

1946 

1947 

1948 

1949 

1950 

1951 

1952 

Pounds 

13, 703, 436 

4, 064, 120 

7, 587, 069 

3, 826, 424 

8, 441, 974 

8, 472, 182 

8, 396, 560 

7, 994, 000 

7,195, 000 

6, 397, 290 

Pounds 

952, 050 

933, 920 

892,104 

872, 292 

981, 826 

951, 180 

950, 634 

896, 230 

807, 900 

692, 749 

Pounds 

2, 149, 426 

1, 378, 186 

1,370,059 

1, 172, 477 

1, 334, 799 

1, 053, 847 

1, 026, 640 

912, 970 

867, 950 

731, 866 

Pounds 

65, 374 

5, 767, 582 

3, 795, 255 

1, 401, 731 

735,445 

Pounds 

96, 000 

210, 865 

346, 851 

Gallons 

4, 048, 706 

5, 438, 244 

5. 178, 148 

5, 331, 935 

5, 483, 613 

5, 770, 950 

5, 877, 515 

2,902, 107 

1, 603, 892 

1, 536, 210 

Barley. 

Oats. 

2 Represents 273,556 pounds of barley and 73,295 pounds of oats. 

4 Corn sugar. 

s Corn sirup. 

Citrus sirup. 

7A molasses product. 

s Represents 254,311 gallons of citrus waste concentrate and 550 gallons of cane sirup. 

Represents 125,890 pounds of corn sirup, 26,550 pounds of raw sugar, and 1,000 pounds of hydro]. 

6Citrus waste concentrate. 

o Cane sugar. 

STATISTICAL TABLES 

XII. VOLATILE FRUIT-FLAVOR CONCENTRATES 

[Produced by concentrate plants] 

TABLE 88.-Production: Volatile fruit-flavor concentrates, by kinds and by months, 

fiscal year 1952 I 

[Wine gallons] 

Month Grape Apple Cherry Berry Other Total 

July 4,724 16 231 1,965 

151-1Ehliflri cr.42-g—t as•-s

glug 

August 12,478 11 132 

September 55, 384 25 

October 108,852 10 3 35 

November 474 7 3 44 - 

Deeember 4 3 

January 1,466 49 49 

Febry 4,962 5 75 2 

March 25,554 41 1 

April 26, 759 9 21 

May 44,505 10 5 

June 48, 261 4 453 5.823 

Total 333,439 2,837 166 8 976 7 7,894 345,312 

I Represents operations under Regulations 30. Volatile Fruit-Flavor Concentrates, effective Sept. 27, 1949. 

Represents 519 wine gallons of strawberry, 287 wine gallons of raspberry, 105 wine gallons o elderberry, 

and 65 wine gallons of blackberry. 

8 Represents 5,824 wine gallons of pineapple, 1,965 wine gallons of currant, 79 wine gallons of Odom, 25 

wine gallons of plum, and 1 wine gallon of peach. 

XIII. CLAIMS 

TABLE 89.-Claims for redemption of stamps and remission, abatement, and refund 

of taxes, fiscal year 1952 

RedempCon of 

stamps 

Remisof taxes 

S on 

Abatement 

of taxes 

Refund 

o

f tax 

 es 

1 

11

ib

l- 

]edible 

taxes 

Total 

number 

Total 

amount 

On hand July 1, 1951 272 19 24 707 46 1,063 $778,519 

Received during year 1,459 706 328 6, 834 9, 327 8,902, 767 

Reopened during year 13 1 8 1 23 27,053 

Total 1, 744 720 353 7, 549 47 10,413 9, 708,339 

Allowed 1,443 584 126 6,076 34 8, 263 7, 906, 839 

Rejected 137 128 64 152 6 487 418, 203 

On hand June 30, 1952 164 8 163 1,321 7 1,663 1,313,297 

Total • 1,744 720 353 7,549 47 10,413 9,708,339 

TABLE 90.-Claims for drawback, fiscal year 1952 

Products exported 

229047-53-17 

Fiscal year ended 

June 30- 

Materials used-Cont* nued Vinegar 

Number 

of plants 

Yeast mash operated 

beer 

Chemicals Other materials Production Stocks 

June 30 

Gallons Pounds Pounds Gallons 

100-grain 

gallons 

100-grain 

gallons 

1943 10, 287, 191 17, 559 80,1300 s 1, 210, 946 22,126, 578 3, 065, 621 18 

1949 14, 045,890 16, 271 24, 516, 355 3, 521, 233 15 

1945 19, 907, 360 20,914 24, 755, 614 4, 264, 553 15 

1946 22, 036, 550 24,759 25, 235, 255 3, 014, 634 13 

1947 21, 187, 375 38, 073 23, 933 26, 855, 444 3, 588, 247 11 

1948 6, 790, 400 46, 662 7,358 259, 861 24, 816, 502 4, 428, 397 11 

1949 4, 829, 034 42, 467 153,440 6404, 473 25,417, 460 2, 877, 138 11 

1950 2, 571, 450 47, 648 14, 448, 276 1, 448, 877 10 

1951 20, 000 is 300, 574 8, 884, 283 1, 251, 984 8 

1952 72, 363 51, 600 684 300 9, 327, 613 1, 678, 730 8 
244 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 245 

TABLE 90.-Claims for drawback, fiscal year 1952-Continued 

Products exportedContinued 

Alcohol used in Ea- Stills exported Total 

voring extracts and 

toilet and medicinal preparations 

Number Amount Number Amount Number Amount 

On band July I, 1951 96 $95, 055 1 $22 407 4760, 766 

Received during year 681 846,522 2 88 8,621 36, 510, 109 

Total 777 941, 577 3 110 9,028 37, 270, 875 

Allowed 709 846 657 3 110 8, 135 33,948,494 

Rejected 304 32 72,837 

On hand June 30, 1952 68 92, 616 861 3,249,644 

Total 777 941,577 3 110 9,028 37, 270,875 

XIV. LABEL ACTIVITY 

TABLE 91.-Label activity under Federal Alcohol Administration Ac , fiscal year 1952 

Applications received Certificates issued Applications 

dLsapproved 

Total 

For 

approval 

For 

exemption Total Approvals Exemp- dons DISTILLED SPIRITS 

Domestic 9, 990 93 10, 083 9,176 83 212 9, 471 

Imported I, 192 1, 192 1, 210 70 1, 280 

Total 11,182 93 11,275 10,386 83 282 10,751 

WINES 

Domestic 13,184 193 13,377 12, 769 165 234 13,168 

Imported 7,642 7, 642 7,137 192 7,329 

Total 20,826 193 21,019 19, 906 165 426 20,497 

MALT BETERAOES 

Domestic 1,118 1,118 1,012 21 1,033 

Imported 163 163 139 9 148 

Total 1, 281 1, 281 1,151 30 1,181 

Grand total 33, 289 286 33, 575 31, 443 248 738 32,429 

XV. ENFORCEMENT, ALCOHOL. AND TOBACCO TAX DIVISION 

TABLE 92.--Enforcement, Alcohol and Tobacco Tax Division:I Seizures and persona 

arrested, by months, fiscal year 1952 

Month 

Seizures 

Persons 

arrested 

Stills 

Noretaxpaid 

distilled 

spirits 

(wine 

gallons) 

Non-tax1,121 wines 

(wine 

gallons) 

Mash 

(wine 

gallons) 

Automobiles Trucks 

Property 

(appraised 

value) . 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

776 

783 

785 

901 

711 

825 

996 

944 

977 

969 

804 

798 

13, 792 

13, 495 

12,043 

12, 598 

10,696 

11, 158 

13, 798 

13, 396 

13, 929 

16, 681 

IA 480 

13,672 

. 4 

5 

177 

35 

81 

236 

198 

154 

21 

520 

212 

138 

409, 803 

353,966 

458.323 

462,843 

432,180 

511, 366 

570, 386 

569, 779 

532,880 

537, 386 

481,671 

378, 016 

145 

124 

116 

148 

104 

142 

127 

144 

122 

162 

148 

142 

39 

ao 

49 

42 

35 

45 

39 

67 

47 

44 

59 

59 

$184,999 

191,594 

209, 653 

191,853 

177, 645 

240, 681 

234, 709 

330,120 

227, 373 

289,118 

325, 

213, 69

597

0 

809 

767 

720 

811 

613 

874 

909 

934 

1,015 

849 

781 

769 

10, 269 160,738 1, 781 b, 700, WO 1, 624 559 2, 817, 032 9,851 

Includes seizures and arrests in cases adopted, as well as originated by the Alcohol and Tobacco Tax 

Division. Does no Include seizures and persons arrested in cases arising out of violations of laws relating 

to tobacco after the transfer on Nov. 13, 1951, to the newly designated A cohol and Tobacco Tax Division 

(formerly Alcohol Tax Unit) of functions concerning such laws, as follows: Property seized, valued at 346, 

and 1 person arrested. 

Includes 881,267, representing the appraised value of 32 automobiles, 8 trucks, and 1,575 wine gallons of 

tax-paid liquors, seized for violations of the Liquor Enforcement Act of 1936, and the value of 12,394 a cne 

gallons of tax-paid liquors seized for violations of other internal revenue laws. In addition as a res ilt of 

floor stocks tax evasion, there were seized 16,313 wir e gallons of tax-paid distilled spirits, 24,441 wine gallons 

of tax-paid wine, and 45 wine gallons of tax-paid fermented malt liquor, valued at a total of 8941,575. 
246 REPORT OF COISANOSSIONER OF INTERNAL REVENUE 

TABLE 93.-Enforcement, Alcohol and Tobacco Tax Dirition: 1Seizures and persons 

arrested, by States, fiscal year I952 

/Maki 

Seizures 

Persons 

arrested 

Stills 

Non-taxpaid distilled spirits (wine 

gallons) 

Nell-tss- Paid wines (wions ne rl 

1 

Mash (wine 

gallons) 

Automo- bil es Trucks 

Property 

(app 

value) 2 

Alabama 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Delaware 

District of Columbia_ 

Florida 

Georgia 

Hawaii 

Idaho 

Illinois 

Indiana 

Iowa 

Kansas 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Mississippi 

Missouri 

Montana 

Nebraska 

Nevada 

New Hampshire 

New Jersey 

New Mexico 

New York 

North Carolina 

North Dakota 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Puerto Rico 

South Carolina 

'Tennessee 

Texas 

Vermont 

Virginia 

Washington 

West Virginia 

Wisconsin 

Wyoming 

Total 

1,613 

3 

66 

7 

4 

2 

1 

304 

1,774 

2 

4 

19 

527 

9 

70 

9 

12 

2 

651 

1 

45 

40 

1,600 

17 

209 

4 

105 

1,168 

1, 172 

56 

3 

648 

6 

115 

1 

13,509 

290 

144 

33,661 

3, 706 

1,190 

313 

5,175 

193 

2,485 

14, 122 

58 

20,112 

1 

944 

262 

105 

9,813 

96 

8 

121 

3 

62 

49 

2 

8, 544 

3 

335 

934 

27,515 

1,795 

40 

14,078 

233 

114 

709 

2 

430 

190 

165 

17 

122 

260 

3 

150 

4 

1 

107 

332 

709,709 

77 

'25,015 

750 

5,040 

394,213 

960,825 

100 

300 

765 

89, 565 

1,030 

32,541 

3,550 

3, 550 

394,280 

1,300 

159,001 

46, 129 

902,820 

7,318 

67,318 

127 

68,802 

511,405 

542, 270 

9,805 

668,189 

2,3 

12,603 

7,295 

145 

5 

175 

1 

19 

19 

1 

3 

2 

87 

184 

4 

1 

2 

3 

2 

8 

44 

4 

14 

2 

6 

123 

14 

1 

1 

10 

1 

35 

256 

5 

79 

1 

66 

154 

121 

22 

147 

4 

3 

I 

2294,576 

500 

29,012 

12,038 

1,500 

2,100 

1,623 

675 

176,109 

354,598 

4,840 

70 

27,346 

1,440 

1,600 

36,661 

104,949 

6,092 

16,850 

2,978 

9, 785 

208,458 

29,440 

M 

10 

1, 987 

192,435 

1,300 

347,027 

347,027 

5 

6,285 

111,577 

1,656 

111,656 

192,976 

192,976 

31,262 

647 

141,847 

7,440 

7,440 

via,--w w-n n- rmEnm amm2liwo- ”vii-N ri- ppsirr" 

a a 

10,269 1110,738 1,781 5, 700,599 1,624 559 2,817,032 9,851 

See footnote 1, table 92. 

I See footnote 2, table 92. 

TOBACCO 

TABLES 94-111 
Leaf tobaccoreceived from farmers by i1 01 11

; 

4 

ig 

a 

2-: 

5 

g

64 Mil 

EERRERER 

6,1,4gz 

4 

1 

4"

RE 

1 S 

Eg 

1504 4°

EREREARER 

1 

 ggai 

E.4 lig 

L 0 . a. g 

1 

4 

3 i 

il .64 

boos 

4; 

R 

2 E ,2- E g R Mg; 

Dealers in 

leaf tobacco 

0. F3 

2 

R 

Er

REM 

g gg 

ag gs 

g'

EE 

,2'. 

az; 

g 

1 

g 

a 

ee 

0 

§1 

V4gf 

ER ERE 

pe g 

ti 

E 

Leaf tobaccoexported by dealers 

1 01 13 1

0. 

g 

E 

gg 

E2N 

t. 

gagg 

EE ER 

e 

,a, 

2 g c° 2 

co. ga 

--: d 

.a -, 

b. co 'a El 

e.i. 

.-8 

S A affIe

- 

R 

2 

R 

f f fa lI Sd

0. 

g 

F1 

g 

ts ame pec

-g 

m S mm. 

-4'de 

2.fll RAI 

il 

..: 

E 

fc! tsu mmo pa

ix. 

g I ,-,- va 

0 ,0E ni 

e 

:4 

E 

- 

g e 

0 

---- 

e" 

MI 

e-r 

.R8 

g 

g 

R R ; 

Dealers in leaf tobacco 

tr: n 

4 0g4 

4 .- 

rs-gs024-&r--0--gwee74.— , 8^ 2. 

U 

S 

a 

1 

t .- ,..*!22 

'Qg ei 't4 m-- Nr. 01-- .. CI 

g 

1 .° XR g I''" 

e4010, r .. N 

trgIr 

oE 4 -. 

3 .-14t2n7gr'-"".""ciir

CIR

C '-q gz 

1 

District 

==- 

oos EP 

4°' 

4N.garr. 

A 

A P ,., stj 

Agail1:AsgRAUtRA4wrtPstal 

lael04.p4glithihzztat,02-LW -S 

0..E4,=44-awszeir..e.A4=614. 

: : . : 1 : 

,j, m 

 Pi 'St 

seVz 

siltergas°5 

A 

fl 

mY. 

) 

r 

-213 

a 

4481 

p7,

41 

. T

24 

40 

"

ta 

tl 

,e 

ro 

ti 

A 

0 

11) cgSC? 

) 

PI 

4 

ti 

O 

a 

STATISTICA

248 REPORT OF COMMISSIONEIR OF INTERNAL REVENUE 
0 

250 REPORT OF COMMISSIONER OF INTERNAL REVENUE Materialsused inmanufacturing tobacco t Mk

4MIEREMUR g1 2",""nierig t 3M74 _ .1 mcoi- ..= .. 0 

gii.gtir: 546- 

m_ 

6664gcle4644 Wig 466 4 7i..t 4 a ga ffa a 4 4.1 

6 27 UOV tag a On gr i aOr

01 4 691 5' T1

m re empa 0 47 49

as 0, 

4F 

5

i 

7 , 

a 

E 

"1 

 F5 

a 

g 

,4 -4- 6 

Rag R 21E1 

666 4 

E 

6 

E 

NN 

66 

ER 

25,819, 105 2R nal AAR 

5 18 822'

s n seN

iE 

a 

E 

"2 Ng 

R 61 

a E RREE 

ecgi 6 

E 

5 g6 

REES 

26,574, 986 aninn 11251 

cgs no '

' WSW

4

0 

s g 

In .-. 

ad 

... 'E 

gag 

5RA 

g 

R 

i 

g 

gt 

EH 

15,737, 108 15 R72 741 

g Na

S l me s

4 

1 

a gte 

EgIE 

gd

Egg 

72 ga 

EE 

g 

HER FA 5 R E 

91 WO - Z26 

'91 96.L 16O'

CT O 191 '

ul ord scas

g.„4.., 

4.41U6 74 saa 

R5R 

a • - - - 

REM 

- -,: - - gown 

- 

a 

"g 

gg 

18,700, 738 1R RO2 070 

61 1 Et '

— 

_ 

s 1370 Sd

N 

gri4gmitc 

ORRRERRE 

6W145g

EMERAHREEERg3EREREHIRig 

4a41565 4g g.tgq 

9.6 W 'L WY 

et e '

we ' se

'1 259 569'

1 290

S t mmu pe

co g 

44 

ccd. :4' 

EE 

, 

4 

E 

, 

6 

I 

Igg'97 

HEE 

ea 

74. 

4g4 

RRO 

e 

R 

a 

gig 

us - no YZI 

SS E ZOV

692 LLE '

i 139 4

1 21 20 0117 p9

u -a

k, g' 

15'g 

E7

gig 

-- R ' .., 

3 

4 

PI 

4,4 

gag 

EREg 

at-4W 

ggir 

RERN 

4 

5 EMI 

e ee 

ia66  22i USP ' UL

03 1 82 ` 1B OO

'8 g 'MS EL

Numberof factories 

7

2 

. 

"M""24"""=""- '4R"'^'"ra"'""4 gg 

91 

5 

. . .. ... .C4NCI... ..n .. 

is 

it 

a* 

0 

1 

.17 CI N ..Ni N . 

." 

61 2 

i llg 

4 -. 

"2"t"- *"=""'44" "'''4"g""'"''' gg 

21 

District 

co05 

c.mnO55355 'ant 

° 

P. 

gs.5 

A 

; l i 

g zz.. 

tm.... 

igtqgtOljg 

imang 

mc. 

m 44 ht . 

a. 

444,4.44,42.4-.44!,..,4, -45,r, 

MgAINtgglIEN ° 0 

1

A.1 

4 .A 

ti 

s 

o a .14 

.r. 

A. 

74 

pl i 

I" S 

RR 

11 

il 

n.A 

1 

STATISTICA

Manufactured tobaccoremoved 

, 1 113 - Onni

At 10 cents perpound 

1

.51g1E51E-EENREENE

1""Fig'" 1tE"5:F.gt

.1. .t a a-- 

At 18 cents 

perpound 

gg

4RREFEREFEREFAREggR

-""Iggt' RgrgWg'

Without payment of tax 

& Imo

4 

15 

5 

E 

_ . g 

i 

.ti 

gg 

Foruseof 

the United 

States 

,!, g 

Foruseas 

seastores 

0. 

g g 

Forexport 

cmg 

'A 4 

gga 

E a Rg 

, y io er oop unox ftt ra ape

, 1 10 117

aRREFEEREARREE5R1

gIg'Rtgt' 6gE'EFEE,

_ 

Scrapchew- ing, Main& 

and snail 

a gEEEINEEFEENERRE

Ita145ff'd 6W466:-S

aa g ..: ..fR 

M BU - 0 111

cz 

1 

a 

5 

,sc 

i 

g g' 

M Eg 

, d Ma

. i 

a 

1 

t g 

F 1 

4 

1 A 

R 

g R 

g E 

District 

iil m

as 

il 

-511m - 

4 

1E CE 

tti§2A 

.N 

. 

,, 

EA08.18gbv5vS.F

a 

slow,

Eig

c H1-41

v
252 REPORT OF COMMISSIONER OF INTERNAL REVENITE STATISTICAL TABLES 253 

TABLE 97.-Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1951 

Class 

Number 

of fare 

torles in 

business 

Jan. 1, 

1951 

On band Jan. 1, 1951 

17nstemmed Stemmed Scraps In process Stems Sittings 

1 4 

Pounds Pounds Pounds 

53, 666 

Pounds Pounds Pounds 

2 

a 

42 

ZI 610, 114 

4, 965 

137,654 341; 761 

67,433 

56, 984 91, 620 

305 

4 27 2,205, 788 14,312 1,072, 573 2, 348 380, 950 150, 693 

5 

6 9 

4 

149 

2, 444 

69, 424 

14, 204 86,180 

14, 877.448 

2, 5 

3, 282, 177

39 

7 27 2,911, 291 24,882 I, 507, 515 6,636, 409 473, 233 3, 650 

8 18 292,685 

9 2 1,200 

Total 166 5, 732„ 257 469,543 8, 109,816 6,711, 145 15, 899, 431 3, 439, 314 

Opened Received 

I 280, 639 

2 39, 787 7,081 470, 434 14,180 

3 

4 

5 

2 

4 

22,423,076 

16,096,927 

918 

7, 753, 304 

19, 506 

9, 049, 324 

6,163 194, 757 

 384 

3, 201, 528 

3, 299 

9, 450 

12, 232, 425 

1, 651,139 

29, 027 

1, 594, 682 

16,082 

6 12 429 183,106 1, 870, 954 199, 240, 589 36, 989, 074 

7 2 24,071, 743 267, 437 7,608,428 7, 684, 028 9, 764, 807 1, 151, 106 

8 + 16,249 248,161 

1 1, 400 97,271 

9 3, 115 

Total 13 62,1562, 524 8,575,860 23, 887, 921 10, 891, 968 222, 899, 410 39, 794, 157 

Closed Removed 

1 

2. 

3 3 

9 

14,850,071 384. 678 

278, 088 

371, 269 

16, 669, 559 96,70 

15,184 

419, 260 

4 

a 

e_ 

1 

3 

47,851 

(33 

3,359 16, 661, 417 

379, 656 

49, 978 

4, 205 

32, 074 

12, 710, 27

0

1 

1,412,983 

2,357, 572 

2, 607, 518 

18. 872 

314,374 

111, 678 1,586 983,911 184, 763,065 22,011, 518 

7 I 18, 920, 932 274,054 6, 134,514 24, 626, 816 1,011,392 1,079, 599 

+39,951 

8 4 & 271, 615 

9 3,715 

Total 21 28, 330, 482 175,243 40, 526, 892 24, 666, 900 262,351,353 26,468,823 

Bee footnotes at end of table 

TABLE 97.-Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1961-Continued 

Class 

Number 

of feetories In 

business 

Jan. 1, 

1952 

On band Jan. 1, 1952 

Unstemmed Stemmed Scraps In process Stems Siftings 

5 

Pounds Pounds Pounds 

54, 967 

Pounds Pounds Pounds 

2 36 44,183 162, 364 11 

8 22 1, 227, 078 117, 985 842, 555 80,815 

4 30 

4 

1, 676, 952 

138 

2, 654 1.080,832 

4, 137 

2,398 

3,413 

306,600 

34, 841 264, 723 

6 

7 

6 

28 

560 

2, 437,453 

530 

11, 466 1, 602, 657 

951 

7, 534, 114 

17, 863, 664 

674, 466 

3,494. 221 

137, 651 

8 15 344,167 

9 2 600 

Total 148 5, 386, 364 476, 805 3, 647, 963 7, 621, 290 18,879, 571 3,897,314 

Loss 34, 677, 888 17, 577, 917 1%869, 834 

Gain 606, 639 17, 177, 118 14, 685, 077 

& Description of classification: Class 1, dealers in imported scrap tobacco; class 2, dealers in domestic 

scrap tobacco; class 3, dealers in imported and domestic scrap t bacco; class 4, producers a scrap 0ller 

tobacco; class 5, reclaiming scraps from stems; class 6, manufacturers of fertilize, insecticide, nicotine, etc.; 

dams 7, storage, scraps, etc.; class 8, growers of, and dealers in perique tobacco; class 9, miseellaneous. 

2 Grown. 

Transfened to registries. 

Used in production of nicotine, extract, and fertilizer. 

& Exported. 
REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Cigarsweighingmore than 3 poundsperthousand 

Removed without payment of tax 

, ,1 20 19

ig 

..g 

g

EEig 

ag E

EINE 

aE:gla 06 . gg

EggqiggE4 

425eg 40 

Egg 

a 

Egg's' 

HEM 

Forpersonal consumption 

•

E

tg 

h gdag 

EgEg 

gaggga 

MEEK 

4 

E PEER-F.4 g 

." 4zii:e4 vg 

Egg 

EttLigg4 

RENEE 

Foruseas 

seastores 

t R E es so 

e 

g 

Forexport 

A 

.94 

gg 

ce. 

2 

E 

2 

g 

R 

1 

'2 

gg 

'Eg 

.gg 

"E 

gg 

lk ui in lOn pam

EggEEEggEgEgEgEEEERSERERE 

0, 

15ggaggggC4515'115155151'g 

44 g gg4a1 44 444 a's 41 

551'5151ga 

EgilEEEEEM 

:g°"1 a 

Tobacco used inmakingcigars 2 

-- ' 

igg 

-aeg

a 

mg !N.: jE 

.4.-_ -2 --.- ggggEgg"gEgigl mo..-. ... ..-,-, 

' 4' " gE ggg"E 

igEgE

Eg wl aa X.'" 

aga 

012 

n'

izseca a 

?MEER 

-' -1 

A 

a 

grEgg 

r 2 g- g g 

ggqgrEEIREEEEE - E 

E 8, a gE"ggg" 5 

a 

;1

Egg 

E1 

ggEgAl 

gEtl" 

as 

'1 

gR Eg g Algal' Eg

iSENgElEggEggEroliEggEESPE 

agErgg N..; °T.-/ a gaE gE

EEPENE213 

4 ggg 

Numberof factories 

- 

gAa ,. 4 21:g 

" aar ""RS"4"2"22""" 224 . 2 RRRWaR 

0 1 

". "o"' R"R"" ' ""22"" 

.. eq-0-9z94.-, 

0 

mn 

0 .

C .00. . co maa2 

4 

=SEE 

1"-:-• 

-, 

•"ER'251"ER4""""'24'a>04-1:2>92 

0E 1 12 .1 1 10

aa 

sg 

g 3384044S43 

0 .5. El 11 

Mae 

4454 glffl' - gc - B1M1-Vg.29.1glignil 

acgOoor704504.14a2=tag0a0miStEimHs, 

1 

--= 

gi 

4 

1 241.14WzZz'S.A." 

wr

ela 

twa gl 

Wilt0g. 

A 

Ad 

14.44 

Tift 

AttlE9. 

STATISTICAL 

Y 

§ 

Eq. gaigaa

ilMigUEgEfig 

4.ta0-: 

ag 

w : 

u 

OS 

.. 

i 

 ki 9gs- tau 28 1' 58 4 eti 

8 3 1110 ,1 52

t 

1 

si

EEESEERUgEggg 

c( gaggaa-7-7aa.: 

ER 

i 

I 

 9 ll Wi 9922 

t tat ' 080 

7

ea 

FFi ; F. 

 OW, WE11 '070' 099

9 p ' o z' 09 

§ 

. -- A5 

gF. 

g 

§ 

, 

g 

§ 

E NA 9 Vol I

69 t '

K 518 '

t t it d BBL 

4 44^4 

aliggaggalgalEga 

IgERROEFIAEEENFI 

ggailgs s: 

atial 

NEEES 

54 

8, 594, 290,923 

Allfl nito 11A2 

194231

873 

a ra WI ' 

PPMIMO M 

ANOVA LAI 

 CZ irO L9L'

5 191

081

MERU:51E5M 

ga g 5.4"-1 Ea' 

a ee -7 

a 

5A1E 

a 

gl 

1 2 61 ' 8 8141'

PRIEFillagIggiE 

WI glgggag a a .54 .-: a g gf 

REFS" 

sag - g ni %II 81 6

69 9

19

c7,F,:rErarn" 'Sr 

"L D L9

' sti 

IC 

Ott 

96 

''''ltnftRggFime°/!:§ ^ 

 1 199

t99 

0 

is 

°

499 

nits 

ig.:Me,ege. 

a0 

eA 

N 

vaii. 

tigtm 

aN in 

4°'° .

I 

So 

1 

',',5 liei 1, 

. 

1

01:AOLN 

101111 

n,-rtP 

› .2 a " gg 

3s 

-..., ._ EE 

g

- 

‘9. 

254 
STATISTICA

256 REPORT OF COMMISSIONER OF INTERNAL. REIVENUE 

56691565q564164166

EE,EEEPEgEgEEIEEFFIEUE 416 -'4 gr7I-T g Wagg-44 7.1 

6,517,616,957 

, 

a 

, 

. _.76 

g§ 

.„ 

§ 

t 

. 

g 

p

EL 938 688 '

g trg 

FAH 

:5 

EE 

a 

N 

E 

122,735,588 

44g 

EEE 

E6Weigs1415.46 

LIEgEEEEEgggEEEEEER 

ag g e g = P. - 

giggiggEgggggg ggg

gg 

2, 458, 280, 189 

te

gn 

, 

g 

51-1t5=1564156 6 5g 

593, 884, 132 

REEE5466EREEEE

5 5 

666.24UrE656165 

g g g ggga 

44 d 

1"66 

EEPE 

4a 

2

053

497

460 

56 

gg 

'556 565666' 

gggg gggggig 

ea ge 

g g 

a 

5 i 

008 69E 680'

ge

gg 

: :, 

g 

z.'

gg ggggg 

s gggg 

ea 

d :

g F. -.7 

18

456

61 7 

=4 

>.

V 

a 

-

Z.,54.3 

0 4 4,

6. 

;Timarri

c e 

''''" 1°5 

rern

8

tliaataie 

4o 

_ fl ,.. 

' iie, 

m 

..;.. 

ig 

nt:n2aagi512,15,1g.tha 

'"

gaen 

0 

tt g 

F. 

4 

g 

32 

4 A 

!Via 

hthip 2 .as

. 

- 

E

0

-

5155,56EME6ENEEEEEEEEEEERREEEEE 

1566656g66465V514656651-1665"66E5 

2.6 ee g 4.,:cca.c gi,: 

Rib 

 ae aaa ,,aea 

p: :4 22

-' - - "22 '

1"1el 

-i- Class0 (manu- facture d toretail at morethan20 centseach)—tax, $20 perthousand 

Eg E @ 5 EEEE EFE EEEE 

A .4a 5 6 "Er 6 eve" '56 gal 

Class F (manu- facture ] toretail at morethan 15 

cen tseachan d 

not marethan20 cents each)—tax, $15 perthousand 

00--3 E 6 E R6 REEE EEE EU@ 

A a ggg .1 na "66 5666 

, , , e a ee aa 

Class E (manu- facture d tore tail 

atmorethan8 

,centseach an d ' notmorethan15 

cen tseach) —tax, $10 perthousand 

EIEENE ELMS EEEEEEEE gig@ 

ring: Mgg 5 

M

5E616615 '4' M6E5 6516 

gg gg .4-i ggg geicog 

Class D (manu- factured toretail 

atmorethan6 

centseach an d 

not morethan8 

centseach) —tax, $7 perthousan d 

EEEEEEEE51,165116EEEE5EF EEL?. F§§n 

14!--76EW6645 655165ea a 5 -i6E6 6646 

aa a a a ae aa 

factured toretai l 

at more than 4 

centseach and 

notmorethan6 

centseach)—taa, $4 per thousand 

 Cla

ss 

C (manug, 

72 2- 

Uggggggggigggg EEigigEFE EUEEEE@ 

Agigggggrigq '6655g5'4 151616 

, ag a g.,:ce .. ,,:i ggaa 

factured tore tail 

atmorethan244 

centseach and 

notmorethan4 

centseach)—tax, $3 per thousand 

 Class 

B (ma n

u- 

. 

A 

R 

g. 1g" g et; 65 1 565E 

g g ggg g g gg g EFEE 

„,...r 

kgia7 

... .0 

0..0. 

M5E0E-s 

, 411LIE 

- 

6g-

..2.2 , 

EgE E EF EEE E EE EFEE 

(1 1 149 10

53CW g, ii as 

°1142VSocp.2, r.wo - W).p...qt ZN .E 

606i0OPW044.14 W4=2Z2Nall.mFN 

1 

a gq iloU 

15t A..5 70/ 171.;gt 

ar A— 4444 ilr41041tetW 

I 

.sit 
3-1 

.4 

331 E-1 

258 

4 

0 

ti 

0 

Ca 

0 

'" 

IcS •

41" 33-30 

4 

t

ea 

Tw; 

ts 

g 

a 

La 

3

• 

g 

; 

g p 

g.c 

o 

lc 

°.tc 

g 

r 

.41 

0J 4 

P. 31 

O 

8 

C 

p E

0 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Manufactured Num ber 173, 325,273 166, 687, 755 91 29' HE 2 Valueof stampsused $2, 562, 650. 80 2,303,629. 80 '691 oo Tobaccoused 3 s ug &h Pounds 63, 153 70,797 2 9 14 Removed tax-paid & IMO Num ber 170,913,471 158, 911, 804 1 9 2 0 /99 2 '10 O Num ber 69,960,368 57,635, 018 12, 325, 350 s l pomme1 94' £ 91' 0 4I 2 938 d spuno on coo ' l° a sou t t L90I It o ' 'Iw Ill N Q111A 19'011 a l lfil ig pennl 81s 991' 4 81 ' 140; y c puno e I 161 W la a sgu'It '944 0 60 66 '808 ' .113 / N n pu at er 916 t Numberof warehouses a M 12 ' i tr g min see

CI.a 

10 a RN

64 9 080 '

'6 12 '3 W9 

N notun

'1 6 '23 846

MO PO

no 0 mo

9 se ' 't OTC 1 oa '

w qua +s

e w ow '

0 nansd

D R a MO

SO D

li me I

AT MIU AN

093 

f Mif

1 u g gen er ss

as 

g0 V Sei

09 0SZ O

T A QIIM SP

& 

. A 11331

a 0 .12 30 99/

i ntf OSSa

0261 

1961 

A Nri

/ 43 8S90131

I II OSBUD

61 09

1961 

STATISTICAL T

Tobaccoused * 

Scraps, 

cuttings, 

and 

clippings 

a 

g 

1 ggl 

Ma' a 

g 

t1 

4 

e a :M en pe

1 

5 g 

g g-w 

gOg 

51E-1 gi 

4 

g 

a u As anilw Im

4 

1 

a 

g 

CO gliM

2 g 

a 

an 1 

fi 

Numberof factories 

f 1 ne 1' 326

/ rr g nn u sm

.... . -....., 

Closed 

. . . .. . . 

0 nod pg 

.. . . 

1 1 ' 6 19

WN [MO

...c....,..c. 

M PP P 

r um,mnpuurt Fifth New Riney First New York Second Hew York Third N6w York Fourteenth New York North Carolina Tenth Ohio 

229047-63----18 
REPORT OF COMMISSIONER. OF INTERNAL REVENUE STATISTICAL TABLES 261 

TABLE 1 02. -Czgarettes weighing more than 3 pounds per thousand: Quantity of 

tobacco used, number of cigarettes manufactured and removed, calendar year 1951, 

by collection districts 

District 

Tobacco used Cigarettes weighing more than 3 

pounds per thousand 

Unste mmed Stemmed 

Scraps, 

cuttings, 

and 

clippings 

Manufactured 

Removed 

Without 

Payment 

of tax 

for export 

Tax-paid 

Pounds Pounds Pounds Number Number Number 

First New York 

Second New York 

292 

100 927 

895 

65 

263, 940 

269, 050 

5,000 

3, 600 

258,940 

267, 730 

Third New York 5 500 600 

North Carolina 161 90,900 90,900 

Virginia 1,060 241, OOD 11,090 230,000 

Total, 1951 558 1, 822 1,125 815,390 19, 600 798,070 

Total, 1950 826 2,097 88 685,920 16,150 671,780 

Increase 1,037 129,470 3,450 126,990 

Decrease 268 275 

Average quantity of leaf tobacco used per thousand large cigarettes, 5.5 pounds. 

None.-The number of factories in business is Included in table 101. 

TABLE - 103.-Leaf tobacco used in manufacturing cigars, cigarettes, and tobacco and 

snuff, calendar years 1947 to 1951 1 

LEAF TOBACCO USED 

Year 

Cigars Cigarettes 

Tobacco and 

snuff Weighing Total 

more than 3 

pounds per 

thousand I 

not more 

than 3 

pounds 

per thouWeighing 

.„,..

sds.

- 

ne n' "e- 3 poun 

per thou- • - sand 

Weighing not 

more than 3 

pounds n" thousand 

1947 

1948 

1949 

1950 

1951 

Pounds 

135,028, 366 

139, 465, 561 

124,842, 632 

127,134, 693 

129, 546,010 

Pounds 

309,472 

367, 340 

330, 787 

274,865 

272, 576 

Pounds 

2,785 

3,263 

3,837 

3, 739 

4, 487 

Pounds 

1, OM, 591,192 

1, 099, 173,092 

1,096, 150.593 

1,106,064 292 

1, 184, 628, 490 

Pounds 

164,184, 731 

161.092,053 

161,019, 845 

159, 878,374 

150, 210, 581 

Pounds 

1,355,116.546 

1,400,091,309 

1, 382,347,694 

1, 393, 354,8E4 

1, 454,662,199 

.8 

The quantities given are unstemmed equivalent of all kinds of tobacco used. Stemmed I of and scram, 

etc., used in manufacturing have been converted to unstemmed equivalent at the ratio of 3 pounds stemmed, 

etc. to 4 pounds unstemmed. 

Does not include tobacco used in bonded manufacturing warehouses. 

Removed without payment of tax Removed tax-paid 

2g Ni 

41 

tqa 

2 

!siki 

"f• 

I 

b 

S 

4 

a 

Cl 

6 

1 

A 

8 

S 66 § OE 

rice 

mm 

RE 

0000 

16 

46 

as 

ei 

2 

t 

S 

6 

0 

8 

1.12 

EQ St Y, Sri Z>U, gg >, z4 0 0:2 - 

tgitoWlzae4 WI fl 

ou„,grzA) vq001

g

1: 4$ ??, tg 5c, 

e S. ..RW4igt 401 44 000 1 1, 513, 434, 200 

6 

S 

8m 

6 

Se 

ee 

1:48 

264 REPORT OF COMMISSIONER OF INTERNAL. REVENUE STATISTICAL TABLES • 265 

TABLE 107.-Domestic and imported cigarette papers and tubes withdrawn tax-free 

and tax-paid, fiscal years 1951 and 1952 

Fiscal year 

Cigarette papers Cigarette tubes 

Tax-free packages, 

books, or sets 

Tax-paid packages, 

books, or sets Tax-free Tax-paid 

Domestic Imported Domestic Imported Domestic Imported Domestic mported 

1952 

1951 

Number 

517. 272, 863 

538, 549,376 

Number Number 

64, 881.599 

78, 259, 630 

Number 

328 000 

296,000 

Number 

115, 734, 260 

9, 717,400 

Number Number 

5, 573, 200 

7,468,300 

Number 

TABLE 108.-Withdrawals of manufactured tobacco, snuff, cigars, and cigarettes 

from bonded internal revenue tobacco export warehouses,' for expor , year ended 

June 30, 1952 

Class of product 

Withdrawn 

from warehouses during 

year 

Exported 

Tax-paid or 

returned to 

factory 

Tobacco and snuff 

Large cigars 

Small cigarettes 

pounds. 

number_ 

do 

2 

19, 132, 400 

1, 350 

2 

19, 147,400 

There were 3 such warehouses in operation at the close of the year. 

TABLE 109.-Withdrawals of manufactured tobacco, snuff, cigars, and cigarettes 

from factory in bond, for shipment or delivery as sea stores, year ended June 30, 

1952 

Class of product 

Withdrawn 

from factory 

during year 

Delivered to 

sea stores 

warehouses 

Delivered to 

vels sse 

Tax-paid or 

returned to 

factory 

Tobacco and snuff pounds__ 

Small cigars number__ 

Large cigars 1 do_... 

Small cigarettes do__ 

93,650 

16, 000 

4, 740, 700 

4,048, 128 880 

89.56E 

4, 741, 950 

&18Z551,640 

21, 000 

353 

7, 500 

1, 510,000 

88 

9.000 

27.500 

10, 752,040 

Class C, 435,000; class D, 14,500; class E, 4,167,600; elms F, 119,000; class G, 4,600 cigars. 

TABLE 110.-Withdrawals of manufactured tobacco, snuff, cigars, and cigarettes 

from tobacco sea stores warehouses,' for shipment or delivery as sea stores or export, 

year ended June 30, 1952 

Class of product 

Withdrawn 

from warehouses during 

year 

Delivered 

Tax-paid or 

returned to 

To vessels for factory I 

sea stores For export 

Tobacco and snuff pounds__ 

Small cigars number__ 

Large cigars d0- 

Small cigarettes do__ 

Cigarette papers booklets__ 

9 181 

21, WO 

4, 991, 450 

4,141, 421,980 

75,000 

65, 722 

W. 000 

2, 995, 350 

8, 736, 207,740 

28, 358 

9, 000 

2, 024 700 

412,600,920 

75,000 

o There were 47 bonded internal revenue and 16 Navy warehouses in operation at the dose of the year. 

f Figures include tobacco, cigars, and cigarettes destroyed at the warehouses. 

'0 

0 

ro 

52 

sik 

0 

E 

ti 

2 

tI 

ti 

Fa. 

4. 

V

V 

O 

O 

0 

a 

04 

41 
266 • REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE M.-Exportation in bond of manufactured tobacco, snu

ff, cigars, and 

cigarettes, etc., year ended June 30, 1952, by collection districts I 

District 

Manufactured tobacco 

and snuff 

Cigarettes weighing not more than 3 pounds 

per thousand 5 

Removed for 

exportation 

Tna Exported 

-- 

Removed for 

exportation Exported 

Delivered to 

export warehouses 

First California 

First Illinois 

Kentucky 

First Missouri 

Fifth New Jersey 

First New York 

Second New York 

North Carolina 

First Ohio 

Tenth Ohio 

First Pennsylvania 

Tennessee 

Virginia 

West Virginia 

Total 

Pounds 

54, 665 

35, 752 

619, 711 

1, 217,149 

1, 358 

139 

854,176 

192, 752 

432 

256, 805 

3, 662 

3, 247, 747 

27,992 

Pounds 

642, 931 

1,107, 388 

I, 358 

139 

893, 894 

256, 673 

5,428,003 28 

27,866 

55, 039 

35, 617 

213, 576 

432 

8 562 

Number 

325, 502 380 

85, 533, 590 

235, 879, 600 

1, 981,180 

7,925,480 

13, 429, 910, 980 

 1,117,372,680 1,117, 

17, 949, 535, 200 

5, 910, 000 

Number 

347, 630, 380 

7,892,480 

13, 793, 203, 380 

1, 138,097,600 

18,030, 804, 880 

98 002, 390 

248, 472, 600 

4, 326,180 

670,000 

Number 

4, 400 

14,165, OW 

9 962 000 

6, 512 240 6, 66$ 478 33,154, 551, MO 33, 666, 099, 81019,131,400 19,131, 

District 

Cigars weigh ng more 

than 3 pounds per 

thousand I 

Unmanufactured 

tobacco materials Cigarette Paper books I 

Removed 

for exportation 4 

Exported 

Removed 

for exportation 

Exported 

Removed 

for exportation 

Exported 

First California 

Sixth California 

Connecticut 

Florida 

Indiana 

Louisiana 

Massachusetts 

Michigan 

First Missouri 

New Hampshire 

First New Jersey 

Fifth New Jersey 

Second New York 

Third New York 

Fourteenth New York 

North Carolina 

Tenth Ohlo 

First Pennsylvania 

Twelfth Pennsylvania 

South Carolina 

Tennessee 

Virginia 

West Virginia 

Number 

15, 250 

18, 662 615 

$100 

20,000 

25, 500 

10, 900 

264,800 

1, 903, WO 

5,000 

28,500 

146, 000 

31,460,200 

20,053, 000 

8 598,000 

1,533,200 

1,000 

Number 

18,300,215 

1, 872950 

5, 000 

33, 875, 950 

20, 553, 500 

1, 582 700 

42, 750 

8,100 

2.000 

10, 500 

400 

215,080 

17,580 

128 000 

8644,000 

Pounds 

5, 863 

3,679 

24,110 

125 

54, 992 

21, 282 

94$192 

3, 579 

74.865 

375, 866 

120 

6, 250 

Pounds 

21, 282 

109 015 

5, 863 

5,359 

19, 804 

125 

65, 014 

868 669 

14, 344 

W.480 

375, 666 

Number 

3, 520,140 

8 860, 884 

10, WO 

W, 805. 400 

Number 

$, 210, 800 

8 768, 044 

15,800 

 35,336,680 3$33$ 

Total 77, 674,465 80, 279, 065 1, 518, 718 1, 573, 621 66,197, 224 50, 326,244 

I Tax-paid or returned to factory, or destroyed after removal and prior to exportation: 319 pounds of 

tobacco and snuff, 11,569,120 small cigarette , 1,000 large igarettes, and 29,500 large cigars. 

Cigarettes weighing more than 3 pounds per thousand: 25,500 removed for exportation, 24,500 exported. I Cigars weighing not more than 3 pounds per thousand: 332.000 removed for exportation, 332.000 exported. 4 class A 90,000; class B, 218,000; class C, 25,353,620; class D, 1,797,670; class E, 49,495,900; class F, 5.15,700; 

class G, 203,575 cigars. 

I Cigarette tubes; 108,933,000 temoved for exportation, 110,433,000 exported. 

STAMP TAXES 

TABLES 112-116 
NCON N 

.NOCV. 

Co .1 N pt ti 

NO N.0.01 

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00..00.. 

Wn 

00 

268 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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270 REPORT OF COMMISSIONER OF DITERNAL REVENUE STATISTICA

Coin-operated devices, billiard,pool, and bowlingalley 

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272 REPORT OF COMMISSIONER OF INFERNAL REVENUE STATISTICAL 

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274 REPORT OF COMMISSIONER OF INTERNAL BIDVENUE STATISTICAL TABLES 275 

TABLE 113.-Production and withdrawals of renovated butter, year ended June SO, 

1962, by collection districts 

District 

On hand 

July 1, 

1951 

Produced Withdrawn 

tax-paid 

Lost or 

destroyed 

On hand 

June 3 

1952 13, 

Alabama 

Georgia 

Total 

Pounds 

425, 665 

26.372 

Pounds 

792, 676 

304,296 

Pounds 

808,110 

306,918 

Pounds Pounds 

410, 231 

23,750 

452,037 1,098,972 1,115,023 433,981 

TABLE 114.-Summary of produc ion and tax-paid withdrawals of renovated butter, 

years ended June SO, 1943 to 1952 

Withdrawn Withdrawn Year Produced tax-pald Year Produced tax-paid 

Pounds Pounds Pounds Pounds 

1943 3,442,384 3, 433, 385 1948 1,246,535 1, 252, 693 

1944 3, 144. 299 3.121, 526 1949 1,327,209 1, 316, 265 

1945 3, 173, 629 3, 189, 298 1950 1,451,179 1,453, 333 

1946 1,751, 116 1, 737, 289 1951 938,065 941.006 

1947 1,017, 115 1,068,777 1952 1,096,972 1,115,023 

TABLE 115.-Production, importation, and withdrawals of playing cards, by months, 

year ended June SO, 1952 

Month Produced Withdrawn 

tax-paid 

Lost or 

destroyed Imported 

Withdrawn 

free of rat for use of united 

States 

Withdrawn 

for export 

On hand July 1, 195121.125.776 21,125, 

1951 

July 2, 534,490 2,760,07 353, 511 17,688 75 

August 4, 023, 627 4, 468. 771 651.595 198,568 15 

September 4, 454, 791 9,639, 979 627,019 27,824 9 

October 5,831, 900 5, 709,195 524,408 3,996 57 

November 5, 262, 711 5, 940, 635 838,393 29.976 146 

December 4,316, 718 4, 581, 058 584,673 7,632 213 

1952 

January 5,359,178 5, 760.425 1,050,282 169, 349 5 

February 5,404. 027 5, 392, 026 552.350 10, 512 126 

March 6, 277, 977 4, 893,880 58%210 1, 224 

April 6,091, 867 4, 201,745 617,333 123.40 

May 5.30.5, 629 3, 637,070 286, 783 3,024 

June 5,270,677 9,152,118 566,437 6,326 

Total 611. 033,112 50, 436,718 7.241,994 599,399 668 

On hand June 30, 1952 16,880,782 

TABLE 116.-Summary of internal revenue stamps issued to collectors of internal 

revenue and the Postmaster General during the fiscal years 1951 and 1962 

Kind 

Quantity Value 

1951 1952 1951 1952 

Liquors: 

Distilled spirits, bulk lots 1,959,380 334,210 $3, 741, 545, 925 WM, 830, 612 

Distilled spirits, cask stamps 1, 671,000 637, 700 794, 339,100 346, 292,790 

Certificate of tax payment, distilled spirits for shipment in 

tank cars 14,950 7,200 (1 ) 0 

Export (secs. 2878 and 2885, I. R. C.). 34,400 43,200 3,440 4,320 

Bottled-in-bond, export (blue 

strips) 3, 550,000 2,331,400 24,625 22,902 

Bottled-In-bond, domestic (green 

strips) 120,242, 000 86,625,000 1, 119, 920 815,588 

Container or bottle stamps (red 

strips) 1, 8CS, 465, 000 1, 142, 751, 000 15, 665, 775 11,131,631 

Rectification tax 348,200 298, 800 39, 727, 032 25, 719,223 

Rectified, Puerto Rico 550,000 610, 000 341,000 377,000 

Rectified, class A (tax-free) 1, 600 2,100 (') (X) 

Alcohol warehousing 1,250 52,500 (5) (5) 

Wholesale liquor dealer's packages 66,000 44,800 (') (') 

Wine 30,786, 200 67,981,750 57,178, 402 25, 540,000 

Fermented malt liquor 47,156, 300 42,184, 558 656,696,000 729,972,980 

Tobacco: 

Manufactured tobacco 1,336,383,840 1,217,850,880 34,946,452 22,192, 777 

Snuff 320,974,832 312,980, 882 7, 543, 593 9,836, 316 

Cigars, large 180,283,120 192,206,080 46,264,385 48,002,176 

Cigars, small 8, 549, 000 6,677,000 64,485 50,475 

Cigarettes, class A 18, 651, 063,100 19,357,637,200 1, 305,180, 767 1,483,381, 809 

Cigarettes, class B 103,100 254,400 17,893 44,643 

Cigarettes, tubes 

Oleomargarine: 

Domestic, colored 

Domestic, uncolored 

Process or renovated butter 60, 000 113,000 1,500 4, 230 

Playing cards 72,908,900 57,816,700 9,478,157 7, 516,171 

Documentary 37,327,140 39,187,888 67, 527,857 80,401,669 

Stock transfer 4,789,740 4,187,688 31,528,473 22,221,394 

Silver transfer 15,268 22,080 110,379 397,026 

Narcotic 9,71%100 9,451, 275 415,839 385,004 

Order forms for opium 1,613,000 1,689,000 16, 130 16, 890 

Marihuana 

Order forms for marihuana 

National Firearms Act (sec. 2720, 

I. R. C.): 

Machine guns, silencers, etc 40 40 8,000 8,000 

Certain short guns 600 200 600 200 

Special or occupational stamps 1,519,420 2,058,200 5913, 217, 256 587,000, 215 

Total 22, 440,155, 380 22, 546,034 819 7,399,962, 984 4,128,065, 591 

I Value Inserted when purchased. 

Have no money value. 

229047-53-19 
APPELLATE 

TABLES 117-129 
Total 10, 077 368, 480, 816 

STATISTICAL TABLES . 279 

Staff decision (B) RESULTS OBTAINED IN STIPULATED CASES 

278 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 117.-A nalysis of the work of the Appellate Staff during the fiscal year 1952, 

Income, profits, estate, and gift tax cases 

FIELD OPERATIONS-ALL DISTRICTS, CONSOLIDATED 

PART I.-CASES NOT BEFORE THE TAX COURT 

(A) PROGRESS OF WORK 

Revenue agent's finding o statutory 

notice' 

Number 

of oases 

Overasseesment 

Pending at beginning of year: 

Awaiting Staff action 

Awaiting taxpayer's action on statutory notice 

directed or sustained 

Received during year (net-transfers, etc., deducted). 

Total 

Disposed of 

Closed 

Petitioned to Tax Court 

Total disposed of 

Pending at end of year: 

Awaiting Staff action 

Awaiting taxpayer's action on statutory notice 

directed or sustained 

I For cases originally received in pre-90-day status, amount of finding of internal revenue agent In charge; 

for cases originally received in 90-thy status, amount of statutory notice; for estate tax eases, net amount 

after deducting additional State tax credit allowable If substantiated. 

(B) RESULTS OBTAINED IN CASES CLOSED 

TABLE 117.-Analysis of the work of the Appellate Staff during the fiscal year 1952, 

Income, profits, estate, and gift tax eases-Continued 

FIELD OPERATIONS-ALL DISTRICTS, CONSOLIDATED-Continued 

PART IL-CASES DOCKETED BY THE TAX COURT 

(A) PROGRESS OF WORK 

Number 

of oases 

Amount stated in statutory notice I 

- tmlIciency 

in tax 

penalty Overassessment 

Pending at beginning of year 7, 543 $406, 419,807 157, 649, 596 $51, 256,877 

Received during year (net-transfers, etc., deducted): 

Cases considered before jpetition 1,435 

Cases not considered before petition 4, 943 

Cases reopened after trial 56 

Total receipts 6,434 249, 703, 840 41, 324, 303 29, 307, 646 

Total to be accounted for 13, 977 856, 121, 647 98, 973, 899 80, 564, 59 

Disposed of during year 

Closed by stipulation-agreed settlement 3,373 106,825,382 19, 811, 29 10, 247,167 

Closed by dismissal or default 596 3,676, 579 932 542 69, 830 

Tried before the Tax Court on merits 1,002 39, 100,998 2, 639, 169 4,841, 768 

Total disposed of 4,971 149,602,957 23, 382,934 15, 158,785 

PenIcliin atdesnol of roar: advisors

al 5,120 302,901,391 48, 528,059 42,893, 970 

In bands of district counsel 3, 886 203,619, 299 27, 062,906 22, 511, 788 

Total 9, 006 506, 520, 690 75, 590, 965 65, 405, 758 

I Includes amount of overassessments stated in statutory no ice, and, in addition, overassessments in 

certain associated eases in the amount of prior findings of the internal revenue agent in charge or of the 

Staff. For estate tax cases net amounts are used after deducting additional State tax credits allowable if 

substantiated. 

Penalty Overassessment 

Stipulations 

Bled 

17, 543, 700 

Agreements before statutory notice (including agreed 

overassessments and agreed claim rejection) 

Agreements on agents' statutory notices during 90- 

day period 

Agreements on reconsideration after Staff's statutory 

notices 

Defaults on Staff's statutory notices (no petition filed). 

Defaults on agents' statutory notices sustained by 

Staff (no petition filed) 

Unagreed overassessments and claim rejections 

Total 

Number of eases 

Deficiency in tax 

Penalty 

Overassessment 

Net deficiency and penalty 

2, 793, 124 

Number 

of eases 

4,097 

466 

71 

647 

155 

522 

958 

$43,851,641 

461, 580 

881, 817 

9,405,235 

1,336,694 

60,493 

55, 977, 260 

3,373 

$41, 933,075 

6,940,805 

12, 633, 584 

$36,240, 396 

9,212 $338, 320, 805 118, 221, 614 

975 

7,398 

17, 605 

5,95S 

1,570 

7, 528 

8, 887 

1, 210 

562, 313, 812 

102,651, 907 

91, 181,089 

193, 832, 996 

322, 112, 443 

46, 363, 373 

39, 910, 987 

5, 391, 582 

4,381,803 

9, 773, 385 

26, 653, 016 

3, 484, 586 

30, 137,602 

11, 497, 733 

34, 134, 777 

62,196, 196,528 

4,803,650 

66, 998,178 
280 REPORT OF COMMISSIONER OF INTERNAL =PENCE 

TABLE 118.-Summary: Income, profits, estate, and gift tax appeals docketed, 

stipulated, defaulted, and defended on the merits before. The Tax Court (formerly 

Board of Tax Appeals), fiscal years 1940 to 1952, inclusive 

Fiscal year 

Number 

docketed 

per Tax 

Court 

compilations 

Number 

stipulated 

per Tax 

Court 

compilations 

Number 

defaulted 

per Bureau 

statistics 

Defended 

on the 

merits per 

Bureau 

statistics 

1940 4,240 

NOURRERMig. 

1941 4, 366 

1942 3, 676 

1943 3,380 

1814 3,178 

1945 3, 185 

1946 2, 777 

1947 3, 652 

1948 4,402 

1949 4,537 

1950 5,362 

1951 6,137 

1952 6,870 

Total 55, 762 34,182 3,970 13, 731 

Nors.-Excess of total flip 55,762 docketed cases, over total disposals o 51,883 represents an increase 

of 3,879 cases in previously exist

g's, 

 ing case invent° ies. 

TABLE 119.-Analysis of work on compromise, extension of time, and final closing 

agreement cases, fiscal year 1952 

Compromise 

CBS65 

Extension 

 of time 

ge

CAMS 

l' 

On hand, July 1. 1951 3,886 78 

Received (net) 3, 184 89 100 

Total to be disposed of 6, 870 89 268 

Accepted, granted or approved 1,134 33 221 

Rejected 1,677 55 36 

Withdrawn 471 

Transferred 163 

Total disposed of 3,445 88 257 

On band, June 30, 1952 3, 425 1 11 

STATISTICAL TABLES 281. 

TABLE 120.-Summary of ' receipts, dispositions,' lanapendingT inventories of 

nondocketed, docketed, and compromise work (income, profits estate, and gift tax 

cases), fiscal years 1943 to 1952, inclusive 

Cases 1943 1944 1945 1946 1947 1948 1949 1950 1951 1962 

NONDOCILICT5 

Receipts 6, 730 6, 845 6,087 5, 661 5,325 7, 515 8,036 7,384 7,014 7, 398 

Dispositions 15, 930 6, 480 5, 764 4, 579 5, 243 6,473 6, 108 8, 896 7, 147 7, 538 

Inventory 4,020 4, 386 4, 718 5, 800 5, 882 7,924 9, 85210, 340 10, 207 10, 077 

DOCKETS 

Receipts 3, 432 3, 278 3,181 2, 745 3, 332 4, 598 4,624 5,335 6,115 6, 434 

Dispositions 4,081 3,019 2,922 2,816 2,986 3,879 4,484 4,097 4,941 4,971 

Inventory 3, 479 3,738 3,997 3,926 4, 272 4,991 5,131 8, 369 7, 643 9,006 

COMPROMISE 

Receipts 947 783 960 787 1,075 1,629 2,434 3,810 3,862 3,184 

Dispositions_ 1, 062 817 815 702 883 1,293 1, 942 2,327 3,348 3, 445 

Inventory 453 419 564 649 861 1,197 1,689 3, 172 3,686 3,425 

TOTAL 

Receipts 1, 109 0,906 10, 228 9,193 9, 732 13, 74215, 09416, 529 18, 991 17,016 

Dispositions 11, 07310, 316 9, 491 8, 097 9, 09210, 645 12, 534 13,320 15, 436 15, 944 

Inventory 7, 952 8, 542 9, 279 10, 37511, 015 14, 112 16, 672 19,881 21, 436 22, 508 

Conferees 140 139 144 155 171 169 214 223 232 227 

TABLE 121.-Progress in disposition of cases pending before The Tax Court of the 

United States 

FISCAL YEAR 1952 

Pending July 1, 

1951 

Filed or reopened 

during year 

Disposed of during 

year 1 

Pending June 30, 

1952 

Kind of tax 

Num- Amount in Num- Amount in Num- Amount in Num- Amount in 

ber dispute her dispute bar dispute her dispute 

Income and profits 8,014 $864,146,943 6, 009 $579, 721, 457 4, 588 $195,453, 524 9,435 $1, 248,414, 876 

Estate, and gift 593 110, 615, 452 393 31, 160,006 325 47,602,887 661 94,172, 591 

Processing 3 8, 152, 858 3 8,152,858 

TotaL E 810 982,915, 253 6,402 610, 881,463 4,913 243, 056, 391 10,099 1,350, 740, 325 

'Includes cases in which the Tax Court's decision was appealed. 

TABLE 122.-Analysie of cases disposed of in Tax Court 

FISCAL YEAR 1952 

Amount in dispute Amount approved Saved or recovered 

Basis of closing 

Deficiency Overpayment Deficiency payment Amount ' 

Percentage of 

amount 

in dispute 

Income and profits: 

Dismissed 589 $4, 551, 771 $3,007, 850 $4, 261, 551 $29,089 $7, 240, 312 95.8 

Decision on merits. 881 41, 524, 580 6,434, 198 12,122, 927 1, 141,438 17, 415, 687 36. 3 

Agreed settlement.. 3,118 85, 401,119 54, 534,006 39, 813,245 8, 045,160 Kan, on 61.7 

Total 4, 588 131,477,470 68, 976, 054 56,197, 723 9, 215, 687 110, 958, 090 56.8 

Estate and gilt: 

Dismissed 

" 

57, 350 9,102 57,350 66, 452 100.0 

Decision on merit__ 5,818, 610 103, 509 1, 227,307 3,047 1,327, 769 22.4 

Agreed settlement.. 41, 235,486 378, 810 9, 060, 635 10, 218 9,429, 227 22.7 

Total 325 47,111, 446 491,421 10, 345, 292 13, 265 10, 823, 448 22.7 

Grand total 4, 913 178, 588, 916 64, 467,475 66, 543, 015 9, 228, 952 121, 781, 538 50.1 

1Amount of deficiency approved plus excess of overpayment in dispute over overpayment approved. 
282 REPORT OF COMMISSIONER OF INTERNAL REVENUE STATISTICAL TABLES 283 

TABLE 123.-Tax Court cases on review in courts of appeal or Supreme Court 

FISCAL YEAR 1952 

Kind of tax 

Pending July 1, 

1951 

Appealed during 

year 

Disposed of during 

year 

Pending June 30, 

1952 

Amount Amount 

12 

Amount Numr

* be Amount 

Income and profits__ 

Estate and gift 

Total 

818, 751,171 

1, 737, 483 

319 

15 

$31, 901, 912 

2, 780, 056 

249 

20 

$14, 848, 947 

1, 287, 411 

401 

18 

$35, 804,138 

3, 210, 129 

354 90, 488, 654 334 34, 861, 968 289 16,136, 358 419 39, 014, 284 

TABLE 124.-Analysis of Tax Court cases on review in courts of appeal or Supreme 

Court 

FISCAL YEAR 1952 

Cases In courts 

of appeal 

In Supreme 

Court 

Pending July 1, 1951: 

Appealed by Commissioner 95 

Appealed by taxpayers 246 3 

Appealed by both 10 

Total 351 3 

Appealed during year 

By Commissioner 87 

By ta 

By both 

xpayers 234 

13 

4 

Total 334 4 

Disposed of during year: 

Favorable to Commissioner 146 

Favorable to taxpayers 91 2 

Modified 30 

Total 1287 2 

Pending June 30, 1952: 

Appealed by Commissioner 126 

Appealed by taxpayers 270 5 

Appealed by both 18 

Total 414 5 

1Excludes cases in which the Supreme Court granted certiorari. 

TABLE 125.-Suits by taxpayers 1 

FISCAL YEAR 1952 

Pending July Instituted Closed during Pending June 

1, 1951 1 during Year year 3 30, 19524 

Court 

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Amount in 

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Amount ann 

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Court of Claims 247 832,389,388 142 $13,876,08 64 $3,080,314 $1,163, 956 37.8 325 $43,185,161 District courts 2, 068 52, 606,491 1, 018 20, 306,169 83910, 739,158 5,035, 361 46.9 2, 247 62,173, 502 

Total 2,315 84, 995, 879 1,160 34,182, 256 903 18, 819, 472 8,199, 317 44.9 2, 572105, 358, 863 

I Primarily suits for refund of taxes or to enjoin the collection of taxes (other than those relating to alcohol, 

tobacco, and firearms taxes). 

Includes 10 processing tax eases: 1 pending in Court of Claims, $46,207 in dispute 9 pending in district 

courts, 8398,027 In dispute. 

8 Includes 1 processing tax case In district court, $1,349 in dispute, nothing refunded. 

Includes 9 processing tax cases: 1 pending in Court of Claims, 846,207 in dispute; 8 pending in district 

courts, $396,677 in dispute. 

TABLE 126.-Claims and suits by the United States 

FISCAL YEAR 1952 

Status Ninumnil bet r Nnumot inber 

suit 

Total 

number 

Am:rat i n 

dispute 

Amount 

recovered 

Percentage 

of recovery 

Pending July I, 1951 238 313 551 851, 353,704 

Received during year for institution of suit 848 348 176,586 

Total 681 

Suits Instituted during year 114 (114) 

Total to be accounted for 352 547 899 51,530,291 

Closed during year 69 111 180 3,125,230 $1,018,492 32.6 Pending June 30, 1952 283 436 719 48,405,060 

1 Primarily suits to collect taxes or to recover erroneous refunds (other than those relating to alcohol, 

tobacco, and firearms taxes). 

TABLE 127.-Lien cases 

FISCAL YEAR 1952 

Status 

Cases in court 1 Cases no in court 

Number Amount 

collected Number Amount 

collected 

Pending July 1, 1951 981 96 

Instituted or received during year 986 473 

Total to be disposed of 1, 967 569 

Closed during year 

Pending June 30, 1952 

966 

1,001 

$186,070 466 

103 

$1,847,192 

1 Primarily suits for foreclosure or to quiet title by mortgagees and other secured creditors, to which the 

United States is made a party. 

Primarily applications for discharge of property from tax liens. 

229047-53-20 
284 RETORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 128.-Insolvency and other debtor proceedings 

FISCAL YEAR 1952 

Status 

Reorganizetion proceedings ' aBnathui'vet7. and receiver- ship proceedings 

Mim eIleneous proceedings I 

Total 

Pending July 1, 1951 

Initiated during year (net) 4 

Total to be disposed of 

Closed during year 

Pending June 30, 1952 

1, 253 

653 

8,014 

5, 828 

4,357 

2, 554 

13, 624 

8, 833 

1,908 13,840 6,911 22,457 

807' 

1, 099 

6,503 

7,137 

2, 480 

4, 431 

9, 790 

12, 667 

I Proceedings instituted under the following sections or chapters of the Bankruptcy Act: Sections 75 

(agricultural compositions and extensions) and 77 (railroad reorganizations) and chapters X (corporate 

reorganizations), XI (arrangements of unsecured indebtedness), XII (real property arrangements), and 

XIII (wage earners' plans) which involve tax Claims and other rights and interests of the United States. 

2 Strict bankruptcy proceedings and Federal or State receivership proceedings which involve tax claims 

of the United States. 

3 Proceedings relating to corporate dissolutions, insolvent banks, assignments for the benefit of creditors 

or administration of estates of decedents which Involve tax claims of the United States. 

4 Reflects adjustment for proceedings shifted from reorganization to bankruptcy and receivership (264), 

from bankruptcy and receivership to reorganization (18), and from miscellaneous to bankruptcy and 

receivership (23). 

COST OF ADMINISTRATION 

TABLES 130-131 

TABLE 129.-Results obtained in insolvency and other debtor 

proceedings closed 

FISCAL YEAR 1952 

Type of proceeding and character of closing Number Amount 

claimed 

Amount 

collected 

Percentage 

collected 

Reorganization proceedings: I 

P- RE8 ' 

Payment 13, 989, 295 $3, 827, 728 91.4 

Uneollectible 104,891 

Abatement 

No amount due 

Other 224, 849 20, 501 .7.0 

Total 807 4, 368, 835 3, 848, 229 83.6 

Bankruptcy and receivership proceedings I 8, 503 28, 960, 035 6, 367, 706 23.6 

Miscellaneous proceedings: 3 

Payment 1, 841 9,098, 995 6,976,524 85.7 

Compromise 139 4, 374, 303 1, 732, 844 39.6 

Uncollectible 416 1, 608, 313 

Abatement 39 102, 832 

Barred by limitations 1 1, 029 

Other 44 5,812,688 

Total 2, 480 *998,160 7, 709, 367 36.7 

Grand total 9, 790 52, 327,030 17, 725, 302 33.9 

I See footnote 1, table 128. 

3 See footnote 2, table 128. 

See footnote 3, table 125. 
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290 REPORT OF anEUISSIONER OF INTERNAL REVENUE 

STATISTICA
INDEX 

291 

Admissions tax 5, 136-138, 158, 161, 163 

Advertising.-- (Bee FederalAlcohol Administration Act.) 

Agents, internal revenue: 

Finding or statutory notice 

Obligations incurred for 

Protested cases 

Agreement cases: 

Agents, internal revenue 

Appellate Staff 

Tax Court 

Agricultural Act of 1949, legislation amending 

Alaska Railroads tax: 

Collections 

Repeal of 

Alcohol (see also Distilled spirits): 

Bottling 

Claims. (See Claims.) 

Denatured: 

Dealers operating, number 

Losses 

Manufacturers operating, number 

Plants operated, number 

Production 

Stocks on hand 

Withdrawals 

Ethyl. (See Ethyl alcohol.) 

Permits 

Plants and permittees qualified in production, distribution, use of 

Alcohol and tobacco taxes: 

Additional assessments 26 

Regulatory work 11 

Alcohol taxes (see also Receipts; specific types): 

Claims 30 

Offers in compromise 33 

Redemption of stamps 27 

Refunds 27 

Aliens, resident and nonresident, returns filed 6 

American Samoa, coconut oil from 144 

Amusement and gaming devices, coin-operated: 

Premises, special-tax payers purchasing special-tax stamps 270 

Receipts 136 

A 

Abatements: Page 

Amounts determined 26 

Explanation 26 

Results obtained in insolvency and other debtor proceedings closed 284 

Abstracts of income tax audit reports exchange program 43 

Additional assessments. (See Assessments.) 

Adjustments protested by taxpayers 22 

Administrative forms, cost of printing and binding 

278 

288, 291 

22 

 22,278 

23,278,280 

24,280 

 47-48 

 155,163 

51 

 219,220 

 196, 198 

 196, 197 

 197, 198 

196, 198 

14, 193, 195, 196, 198 

195, 196, 197, 198 

193-195, 196, 198 

180, 181 

11, 

176-179 

Withdrawals 204, 205, 213 

Alcohol and Tobacco Tax Division enforcement, seizures, and arrests_ _ 17, 

245-246 

293 
294 INDEX 

INDEX 295 

Page 

Appeals to Tax Court 24, 174, 280 

Appellate Staff: 

Agreement cases 23 

Analysis of work 278-279 

Consideration of cases not before the Tax Court 22-23 

Obligations incurred for field divisions 289 

Progress in settlement of cases not before the Tax Court 23 

Appellate work and civil litigation 21-25 

Apples and apple juice, used in production of: 

Brandy and spirits 201 

Wines 228, 229 

Appropriation, salaries and expenses of Bureau of Internal Revenue 291 

Apricots and apricot juice, used in production of wines 228, 229 

Army and Navy contracts: 

Receipts 110 

Returns filed 6 

Arrests, Alcohol and Tobacco Tax Division enforcement 17, 245, 246 

Assessments, additional tax: 

Agreement and default after issuance of 90-day letter 170 

Agreement without 90-day letter 169 

Amounts of 25-26 

Decision by the Tax Court 171 

Fiscal years 1951-1952, by general classes of tax 26 

Income and profits, by tax years 168-173 

Jeopardy: 

Bankruptcy and dissolution procedure 172-173 

Fraud 173 

Regular 168 

Stipulation before the Tax Court 170 

Audit control program 92 

Automobile trucks and buses, manufacturers' excise taxes 128, 157, 160, 162 

Automobiles and motorcycles, other, manufacturers' excise taxes 128, 

157, 160, 162 

Automobiles and trucks, seizures 17, 245, 246 

Automobiles, parts and accessories for, manufacturers' excise taxes 128, 

157, 160, 162 

B 

Bankruptcy and receivership proceedings 284 

Barley, used in production of fermented malt liquors and cereal beverages 221, 

222 

Berries and berry juice, used in production of wines 228, 229 

Billiard or pool room premises, special-tax payers purchasing special-tax 

stamps 270 

Binding. (See Internal Revenue Service.) 

Bonds of indebtedness, stamp taxes 124 

Bowling alley premises, special-tax payers purchasing special-tax stamps_ _ 270 

Bowling alleys, pool tables, etc., taxes 136, 158, 163 

Brandy: 

Bottling 219-220 

Losses 209 

Materials used in production of 201-202, 216 

Production 202, 203, 204, 217, 218 

Stocks on hand 209, 210 

Withdrawals: 

Tax-free 207, 208 

Tax-paid 204, 205, 206 

Breweries operated, number 225, 226, 227 

Brewers tax 120 

Bureau of Internal Revenue: 

Bureau's improvement program 39-43 

Cost of administration 38-39 

Important legislation affecting 47-51 

Inspection Service activities 35-36 

Bureau of Internal Revenue-Continued 

Interpretative and other technical functions of 

Legal functions 

Organization and procedure, changes in 

Personnel summary 

Reorganization: 

Charts 

Plan No. 1 of 1952 

Record of 

Report to taxpayers 

Tax conventions affecting 

Butadiene, production of 

Butter: 

Adulterated: 

Special-tax payers purchasing special-tax stamps 

Process or renovated: 

Special-tax payers purchasing special-tax stamps 

Tax 

Renovated, production and withdrawals 

and cereal beverages 

Cereal beverages' 

Breweries operated, number 

Production 

Stocks on hand 

Withdrawals 

Charts showing organiza 

of 1952 

Cheese, filled: 

Receipts 

Special-tax payers purchasing special-tax stamps 

Chemicals, used in production of vinegar 

Cherries and cherry juice, used in production of wines 

Chief Counsel: 

Authority, duties, and function 

Field offices 

Legal work on criminal cases 

Obligations incurred for field divisions 

Reorganization 

Workload 

Cigar and cigarette floor tax 

Cigarettes: 

Factories, number 

Manufactured, number 

Manufacturers' tax 

Paper books, number removed for exportation 

ported 

Papers and tubes: 

Manufacturers' tax 

Withdrawals 

Production 

Removed: 

Tax-paid 

Without payment of tax 

242 

27 

124 

4 

227 

227 

227 

227 

124 

265 

262 

Pass 

33-35 

44-46 

40-41 

36-38 

75-77 

67-72 

55-63 

81-106 

46-47 

12, 14 

272 

272 

 138, 155, 163 

274 

C 

Cane sugar, used in production of vinegar 

Capital stock tax: 

Refunds 

Stamp taxes 

Carriers, payroll taxes: 

Collections 

Returns filed 6 

Cassava and cassava products, used in production of fermented malt liquors 

222, 223 

on of Bureau under Reorganization Plan No. 1 

 75-77 

138, 158, 163 

272 

242 

 228, 229 

44 

 44-45 

18-19 

 290, 291 

44-45 

45 

122, 157, 160, 162 

259 

260, 261, 262 

124 

and number ex265, 266 

 260, 261 

Z60, 261 
296 INDEX INDEX 297 

Cigarettes-Continued 

Withdrawn for: 

Consumption 

Export 

Sea stores, use as 

United States, use 

Distilled spirits 

Pate 

199,200 

 182,183 

221,222 

241,242 

278 

 23, 278 

30 

283 

Coin-operated devices: 

Premises, special-tax payers purchasing special-tax stamps 

Receipts 

Collections (see also Receipts): 

Delinquent accounts 

Insolvency and other debtor proceedings 

Lien cases, amount of 

Litigation, discharges of liens, by claims in noncourt proceedings_ ___ 20-21 

Summary, by general source, fiscal 1951-1952 3-4 Collectors of internal revenue: 

Obligations incurred for 

Stamps issued to 

Collectors, sales by, stamp tax 

Commissioners of Internal Revenue, July 1862-January 1953 

Compromise cases: 

Analysis of work on 280 

Results obtained in insolvency and other debtor proceedings 284 

Summary of receipts, dispositions and pending inventories of 281 

Conferences resulting from protests by taxpayers 21, 22 Contracts, Army and Navy: 

Receipts 

Returns filed 

Cordials 

Cordials and liqueurs: 

Bottling 

Production 

Corn, used in production of: 

Ethyl alcohol, undenatured 

Fermented malt liquors and cereal beverages 

Vinegar 

Corporation income and profits taxes (see also Receipts): 

Additional assessments 

Claims 

Comparative collections, fiscal 1951-1952 

Refunds 

Returns: 

Examined 

Filed 

Specified sources of internal revenue, 1952 

Summary: 

By months, fiscal 1952 

By sources, fiscal years: 

1916-1952 

1951-1952 

By States and Territories 

Cost of administration 

Court of Claims: 

Internal Revenue cases, number, decided in 

Suits by taxpayers in 

Courts of appeal: 

Internal Revenue cases, number, decided in 

Tax Court cases on review in 

Credits: 

Amounts determined 

Overprepayments of individual income tax 

Criminal cases, legal work on 

Cuba, tobacco imported from 

Currant juice, used in production of wines 

Dealers: 

Denatured alcohol, number operating 

Special-tax payers purchasing special-tax stamps 268, 270, 272 

Taxes: 

Cheese, filled 

Fermented malt liquors 

Guns, certain short 2-barrel 

Liquor 

Machine guns, silencers, etc 

Malt liquors at large 

Marihuana 

Medicinal spirits 

Narcotics__ 

Wines 

Wines and malt liquors 

Decisions: 

Acquiescences and nonacquiescences of the Commissioner 24 

Progress of Appellate Court cases on appeals from 24-25 

Treasury 34 

Declarations of income, returns filed 6 

124 Deeds of conveyance, stamp taxes 

Defaults: 

On statutory notices 

Per Bureau statistics 

Deficiencies: 

Additional assessments 

Appellate Staff decisions 

Cases awaiting action by Appellate Staff 

Income and profits, appealed to the Tax Court 

Revenue agent's finding or statutory notice 

Tax Court cases 

Cigars: 

Factories, number 254, 263 Manufactured, number 254, 258, 262 Manufacturers' tax 122 Production 263 Removed: 

Tax-paid 

Without payment of tax 

Warehouses, number 

Withdrawn for: 

Consumption 

Export 

Sea stores, use as 

Citizens and resident aliens, returns filed 

Citrus waste concentrate, used in production of: 

Ethyl alcohol 

Vinegar 

Claims: 

Alcohol: 

Drawback 

Redemption of stamps 

Excess profits tax, for relief from 

Informers, rewards to 

Noncourt proceedings 

Payment approved from refunding appropriation 

Rejections: 

Agreed 

TJnagreed 

Summary by class of tax 

United States, by 

Club dues and initiation fees, receipts 136, 158, 161, 163 

Coconut and other vegetable oils processed, receipts 142-144, 158, 161, 163 

Coconut oil, legislation exempting production in Trust Territory of Pacific 

51 

264 

 265,266 

265 

6 

Pate 

260, 264 

 260, 261, 265, 266 

260, 265 

260 

 256, 258 

254 

258 

243 

243 

 28-29 

39 

 20-21 

291 

of 

241 

185 

270 

 136, 158, 161, 163 

 19-20 

284 

283 

286, 291 

275 

124 

XIII 

110 

6 

 116-118, 156, 159, 162 

219, 220 

217, 218 

26 

30 

152 

27 

9 

6 

110 

 156, 159 

164 

 3, 4-5, 162 

154 

 38-39,286-291 

25 

283 

25 

282 

26 

28 

18-19 

264 

 228,229 

 196, 198 

138 

120 

146 

116 

144 

120 

142 

116 

140 

118 

118 

 23,278 

280 

 25-26, 168; 169, 170, 171, 172, 173 

278 

23 

174 

278 

 279, 281 
Enforcement work: 

Alcohol and tobacco tax regulatory work 

Delinquent returns and collection of delinquent accounts 

Fraud investigations 

Legal work on criminal cases 

Returns examined 

Equipment, new 

Estate and gift taxes: 

Additional assessments 

Claims 

Examination of returns 

Receipts 

Estate tax (see also Receipts): 

Collections 

Refunds 

Returns filed 

Ethyl alcohol: 

Production and importation of 

Stocks on hand 

Transfers in bond 

Undenatured: 

Losses 

Materials used in production of 

Premises operated, number 

Production 

Stocks on hand 

Withdrawals: 

Tax-free 

Tax-paid 

Undenatured imported: 

Importations 

Losses 

Stocks on hand 

Withdrawals, tax-free 

Withdrawals: 

Tax-free 

Tax-paid 

Ethyl sulphate, used in production of ethyl alcohol 

Ethylene gas, used in production of ethyl alcohol 

Examination of returns 

Excess profits tax: 

Additional assessments 

Claims for relief from 

Examination of returns 

Excess Profits Tax Act of 1950 

Excess Profits Tax Council: 

Issues arising under section 722 of Internal Revenue Code 

Obligations incurred for 

Excessive prepayments of individual income tax 

Excise tax agents, obligations incurred for 

Excise taxes (see also Receipts): 

Additional assessments 

Collections 

Distilled spirits 

Manufacturers' 

Offers in compromise 

Retailers' 

Wagering 

Wines, cordials, etc 

Exempt organizations: 

Business income tax 

Returns filed 

Expenses of the Internal Revenue Service 

Pao 

11-18 

19-21 

9-11 

18-19 

7-9 

42 

26 

30 

9 

164 

14 

14 

14 

 4, 112, 156, 159, 162 

27 

6 

188-189 

182-185 

188, 189 

186, 187, 189 

188, 189 

186, 187, 188, 189 

186, 187, 189 

190, 191, 192 

191, 192 

190, 191, 192 

190, 191, 192 

14 

14 

 182, 184 

182 

7-9 

26 

 28-29 

9 

34 

23 

290 

 27,28 

290 

26 

4, 5 

 4, 112, 116, 118, 156, 159, 162, 165 

 4, 126-132, 157, 160, 162-163, 164, 165 

33 

 4, 132-134, 157, 160-161, 163 

146, 157, 161, 163 

156, 159, 162 

110 

6 

 38-39, 286-291 

298 INDEX INDEX 299 

Page Delinquent returns and collection of delinquent accounts 19-21 Departmental service and field forces operating from Washington, obligations incurred for 290, 291 Depositary receipt procedures 

Diesel fuel tax 43 

 50, 146, 158, 161, 163 Disciplinary actions against employees 37-38 Distilled spirits: 

Bottling for consumption 219-220 Consumption of 13 Legislation amending transfer of 47 Materials used in production of 241 Production of 11 Receipts 112-116, 156, 159, 162, 165 Rectified: 

Materials used in production of 216, 218 Production of 13, 217, 218 Seizures 112, 245-246 Stocks on hand 13 Transfers in bond to industrial alcohol plants and bonded warehouses_ 12 Unrectified: 

Losses 209 Materials used in production of 199-202 Premises operated, number 214, 215 Production 202-204, 213, 214 Stocks 

Withdrawals 209-212, 213, 215 

Withdrawals: 204-208, 213, 214, 215 

For fortification of wine 12 Tax-free 12, 214 Tax-paid 12, 215 Distilled spirits and wines: 

Rectified: 

Materials used in production of 216, 218 Premises operated, number 217, 218 Production 217, 218 Distilleries: 

Fruit: 

Production of distilled spirits by 12 Registered: 

Materials used for production of ethyl alcohol, distilled spirits, 

fermented malt liquors, and vinegar, by 241 Production of distilled spirits by 12 Transfers in bond of ethyl alcohol to 14 Distillers permits 180, 181 District courts: 

Internal Revenue cases, number, decided in 25 Suits by taxpayers in 283 District supervisors' offices, obligations incurred for 289, 291 Docketed cases 279, 280, 281 

E 

Electric, gas, and oil appliances, manufacturers' excise tax_ __ _ 128, 157, 160, 162 

Electric light bulbs and tubes, manufacturers' excise tax 157, 160, 162 Electric light bulbs, manufacturers' excise tax 

Electrical energy: 

Manufacturers' excise tax 128, 157, 160, 162 Repeal of tax 50 Employees' financial statements, Form 1361 36 Employees' tax returns, audit of 36 Employment taxes (see also Individual income taxes; Payroll taxes): Collections 4, 5 Offers in compromise 33 Enforcement, Alcohol and Tobacco Tax Division 245, 246 
300 INDEX INDEX 301 

Exports: Pan 

Alcohol used in flavoring extracts, toilet, and medicinal preparations. 244 

Cigarette paper books 266 

Cigarettes 260, 261, 266 

Cigars 254, 266 

Distilled spirits 207, 208 

Distilled spirits and wines 243 

Fermented malt liquors 224, 225 

Stills 244 

Tobacco: 

Leaf 248 

Manufactured._ 251 

Manufactured; cigarettes, cigars, snuff 265, 266 

Tobacco materials, unmanufactured 266 

Wines, still 232, 233 

Extension of time cases, analysis of work of Appellate Staff 280 

F 

Factories operated, number: 

Cigar 254, 263 

Cigarette 259 

Tobacco 250, 252-253, 263 

Federal Alcohol Administration Act: 

Advertising 16 

Interlocking directorates 17 

Label activity 16, 244 

Permits 15, 180-181 

Trade practices 16 

Federal courts 17, 24-25 

Federal Food, Drug, and Cosmetic Act, legislation approved 50 

Federal Insurance Contributions Act (old-age insurance) 4, 34, 39 

Federal records centers 43 

Federal Trade Commission Act, legislation extending provisions of 48 

Federal Unemployment Tax Act (unemployment insurance) 4 

Fermented malt liquors: 

Breweries operated, number 225, 226 

Losses 224, 225, 226 

Materials used in production of 241 

Number of special-tax payers purchasing special-tax stamps 270 

Production 13, 224, 225, 226 

Receipts 4, 118-120, 156, 159, 162 

Stocks on hand_ 224, 

 tax-free and tax-paid 13, 224, 225, 226 

Fermented malt liquors and cereal beverages, materials used in production 

of 221-223 

Fiduciaries, returns filed 6 

Field Inspection Service, Alcohol Tax Division, obligations incurred for_ 290 

Field offices: 

Examination of returns 8-9 

Inspection of 35-36 

Figs and fig juice, used in production of wines 228, 229 

Figs, used in production of brandy and spirits 201, 202, 203, 204 

Firearms program 18 

Firearms, shells, and cartridges, manufacturers' excise tax_ _ _ _ 132, 157, 160, 163 

Firearms transfer and occupational tax 144-146, 158, 161, 163 

Fishing rods, creels, etc., manufacturers' excise tax 132, 157, 160, 163 

Floor stocks taxes: 

Alcohol: 

Distilled spirits 112 

Fermented malt liquors 118 

Miscellaneous 156, 159 

Wines, cordials, etc 118 

Cigar and cigarette 122 

Liquor 17 

Manufacturers' excise: 

Gasoline 126 

Returns filed 6 

Forms, tax return: 

Cost of printing and binding 

New mailing assembly 

Revision of 

Fortification of wine 

Fraud: 

Investigations 

Procedure, changes in 

Progress in disposition of cases 

Fruit and fruit products used in production of: 

Brandy and spirits 201-202 

Still wines 228-229 

Fruit-flavor concentrates, volatile, production of 15, 243 

Furs, retailers' excise tax 132, 157. 160, 163 

G 

Gasoline, including floor tax, manufacturers' excise tax 126, 157, 160, 162 

Gasoline, manufacturers' excise tax 126 

Gift tax (see also Receipts): 

Collections 4, 112, 156, 159, 162 

Refunds 27 

Returns filed 6 

Gin: 

Bottling 219, 220 

Losses 209 

Production 12, 202, 203, 217, 218 

Stocks on hand 209, 210 

Withdrawals 

Grain and grain products used in production of (see also respective kinds): 

204

, 

Distilled spirits 199, 200, 241 

Ethyl alcohol 182, 183, 185, 241 

Fermented malt liquors 241 

Fermented malt liquors and cereal beverages 221, 222 

Vinegar 241, 242 

Grapes and grape juice, used in production of: 

Brandy and spirits 201, 202, 203, 204 

Wines 228, 229 

H 

Hops and hop extracts, used in production of fermented malt liquors and 

cereal beverages 222, 223 

I 

Illegal activities, investigation of returns of persons allegedly engaged in__ 10 

Importers permits 180, 181 

Imports: 

Alcohol, ethyl 190, 191, 192 

Cigarette papers and tubes 265 

Tobacco products from: 

Cuba 264 

Other countries 264 

Income and old-age insurance (see also Federal Insurance Contributions 

Act): 

Claims 30 

Collections 4, 110, 156, 159, 162 

Refunds 27 

Returns filed 

Income and profits taxes (see also Corporation income and profits taxes; 

Receipts): 

Additional assessments 168-173 

Deficiencies appealed to the Tax Court 174 

Paso 

291 

40 

39-40 

12 

9-11 

41 

10 
302 INDEX 

INDEX 303 

Income tax: 

Collections 

Delinquent returns 

Refunds 

Returns: 

Examined 

Filed 

Individual income taxes (see also Receipts): 

Additional assessments 

Claims 

Excessive prepayments 

Forms 1040 and 1040A, revision of 

Income and employment: 

Comparative collections, fiscal 1951-1952 

Specified sources of internal revenue, fiscal 1952 

Summary: 

By months, fiscal 1952 

By sources, fiscal years: 

1916-1952 

1951-1952 

By States and Territories 

Refunds 

Returns: 

Examined 

Filed 

Unemployment insurance 6, 27, 30, 112, 150, 156, 159, 162 

Withheld and not withheld by employers 3, 110, 148, 156, 159, 162 

Informers' claims for reward 39 

Insolvency and other debtor proceedings 284 

Inspection Service activities 35-36- 

Inspection Service field force, obligations incurred for 290 

Instructions for tax returns, cost of printing and binding 291 

Insurance companies, legislat ion amending determination of excess profits 

tax 48 

Insurance policies, foreign, stamp tax 124 

Intelligence Division field force, obligations incurred for 290 

Interest: 

Additional assessments 168, 169, 170, 171, 172, 173. 

Refunds 27, 28 

Interlocking directorates, pursuant to section 8 of the Federal Alcohol 

Administration Act 17 

Internal Revenue: 

Agents, obligations incurred for 288, 291 

involving nvolving tax issues and nature of decisions by Federal civil 

courts 

Collectors, obligations incurred for 286-287, 291 

Miscellaneous collections 5-6, 

134-146, 152, 154, 156-158, 159-161, 162-163 

Receipts, fiscal years: 

1916-1952, summary 164-165 

1951-1952, comparative 3-4, 148-153, 162-163 

1951-1952, manufactured products from Puerto Rico 

1952, by collection districts, States, and Territories 110-147 

1952, by months 156-161 

1952, summary, by States and Territories 154-155 

Refunds 27 

Internal Revenue Code, public laws enacted, amending sections of 47-51 

Internal revenue laws, technical development of 33-35 

Internal Revenue Service (see also Reorganization): 

Cost of printing and binding 291 

Employees on rolls, fiscal 1951-1952 36-37 

Expenses of 38-39, 286-291 

Inspection activities 35-36 

Legislation affecting 50 

Internal Revenue Service-Continued 

Separations from: rage 

By class of employee 38 

By reason for action 37 

Internal revenue stamps issued to collectors of internal revenue and Postmaster General 

Interpretative and other technical functions of the 

Investigations: 

Alleged misconduct and irregularities on the 

officials 

Applications for relief from excess profits tax 

Fraud 

Jeopardy assessments: 

By tax years 

Fraud 

Under bankruptcy and dissolution procedure 

Jewelry, retailers' excise tax 

Justice, Department of: 

Increase of cases recommended to 45 

Work on criminal cases 18-19 

L 

Label activity under Federal Alcohol Administration Act 16, 244 

Laboratories: 

Marihuana: 

Special or occupational tax 142 

Special-tax payers purchasing special-tax stamps 272 

Narcotics: 

Special tax 140 

Special-tax payers purchasing special-tax stamps 272 

Laboratory activities 15 

Leaf tobacco. (See Tobacco.) 

Leased wires, tax 134, 157, 161, 163 

Leases of safe-deposit boxes, tax 136, 158, 161, 163 

Legal functions of Bureau of Internal Revenue 44-46 

Legal work on criminal cases 18-19 

Legislation enacted, affecting Bureau of Internal Revenue 47-51 

Letterheads, miscellaneous binding, etc., cost of printing and binding_ _ 291 

Licorice, used in manufacture of tobacco 250 

Lien cases• 

Collection through discharges of liens 20-21 

Status 283 

LIFO adjustments, tentative, applications for 30 

Liquor law violations 17 

Liquor plants and permittees 11, 176-181 

Liquors, fermented malt. (See Fermented malt liquors.) 

Litigation, collection through 20-21 

Lubricating oils, manufacturers' excise tax 126, 157, 160, 162 

Luggage, retailers' excise tax 132, 157, 160, 163 

M 

Machine guns and short-barreled firearms: 

Collections 144-146 

Legislation affecting transfer of 51 

Machines, business and store, manufacturers' excise tax 130, 157, 160, 163 

Malt liquors. (See Fermented malt liquors.) 

Malt, used in production of: 

Distilled spirits 199, 200, 241 

Ethyl alcohol, undenatured 182, 183, 241 

Fermented malt liquors and cereal beverages 221, 222, 241 

Vinegar 241, 242 

Management planning and improvements by Office of Chief Counsel 45-46 

 

Page 

3,4,5 

20 

27. 

9 

6 

26 

30 

28 

39. 

148-150 

 110-112 

156, 159. 

164 

 3,4,162 

154 

27 

9 

6 

275 

Bureau 33-35 

part of employees and 

35 

29 

 9-11, 92-93 

172 

173 

 172-173 

 132,157,160,163 

306 INDEX 

INDEX 307 

Page 

Petitions to Tax Court 23-24, 278 Philippines, coconut oil from , tax 

Phonograph records, manufacturers' excise tax 130, 157, 160, 162 

Phonographs, radio sets, television sets, components, etc., manufacturers' 

excise tax 128, 157, 160, 162 

Photographic apparatus and films, manufacturers' excise tax 5, 130, 157, 160, 163 

Pistols and revolvers, manufacturers' excise tax 132, 157, 160, 163 Plants and permittees 11, 176-181 Playing cards: 

Production, importation, and withdrawals 274 Stamp tax 126, 157, 160, 162 Position classifiers, obligations incurred for 290 Postmaster General, internal revenue stamps, issued to 275 Postmasters, sales by, stamp tax 124 Practioners: 

Marihuana: 

Special or occupational tax 142 

Special-tax payers purchasing special-tax stamps 272 Narcotics: 

Special tax 140 

Special-tax payers purchasing special-tax stamps 272 Preliminary notice of adjustment, 30-day 8 Printing and binding, cost for Internal Revenue Service 291 Processing Division, obligations incurred for 290 Property: 

Conversion of, legislation approved 50 Seizures of 

Q 

Qualification standards for position of deputy collector, internal revenue 

agent, and special agent 43 

R 

Racket squads 10, 93 Racketeer cases 19 

Radio sets, television sets, phonographs, components, etc., manufacturers' 

excise tax 128, 157, 160, 162 

Railroad employees' representative tax 

Railroad employment compensation tax 110 Railroad retirement: 

Claims 

Refunds 

Withheld taxes 156, 159, 162 

Railroad Retirement Tax Act (carriers taxes-old-age benefits): 

Collections 4, 110, 156, 159, 162 Revision of Form CT-1 

Raisins, used in production of: 

Brandy and spirits 201 Wines 228, 229 Receffits (see also Collections; Internal Revenue receipts; specific taxes): 

Alcohol taxes: 

Fiscal years: 

1916-1952, summary 164-165 1951-1952, comparative 4, 162 

1952, by collection districts, States, and Territories 112-120 

1952, by months 156, 159 

Receipts-Continued 

Corporation income and profits taxes: 

Fiscal years: Page 

1916-1952, summary 164 

1951-1952, comparative 3, 152, 162 

1952, by collection districts, States, and Territories 110 

1952, by months 156, 159 

1952, summary, by States and Territories 154 

Estate and gift tax: 

Fiscal years: 

1916-1952, summary 

Estate tax: 

Fiscal years: 

1951-1952, comparative 4, 162 

1952, by collection districts, States, and Territories 112 

1952, by months 156, 159 

Excise taxes: 

Fiscal years: 

1916-1952, summary 164-165 

1951-1952, comparative 4, 162-163 

1952, by collection districts, States, and Territories_ _ 112, 126-134 

1952, by months 156, 157, 159, 160 

Gift tax: 

Fiscal years: 

1951-1952, comparative 4, 162 

1952, by collection districts, States, and Territories 112 

1952, by months 156, 159 

Individual income and employment taxes: 

Fiscal years: 

1916-1952, summary 164 

1951-1952, comparative 3, 4, 148-150, 162 

1952, by collection districts, States, and Territories 110-112 

1952, by months 156, 159 

1952, summary, by States and Territories 154 

Miscellaneous taxes: 

Fiscal years: 

1951-1952, comparative 

1952, by collection districts, States, and Territories 

1952, by months 

Stamp taxes: 

Fiscal years: 

1951-1952, comparative 

1952, by collection districts, States, and Territories 

1952, by months 

Tobacco taxes: 

Fiscal years: 

1916-1952, summary 164, 165 

1951-1952, comparative 4, 162 

1952, by collection districts, States, and Territories 122-124 

1952, by months 156-157, 159-160 

Reconciliation of Income Tax Withheld from Wages, Form W-3, revision 

of 40 

Rectification tax, distilled spirits 4, 114, 156, 159, 162, 165 

Rectified products. (See Distilled spirits.) 

Rectifiers: 

Permits 

Special-tax payers purchasing special-tax stamps 

Redemption of stamps: 

Claims 

Refunds 

Refrigerators, air conditioners, quick-freeze units, etc., taxes.._ 

Refunding appropriation, claims approved for payment from 

Refunds: 

Amounts determined 

Amounts refunded in suits by taxpayers 

Efforts to locate payees of tax refund checks 

Transportation of 136, 158, 161, 163 

Protested cases, progress in disposition by revenue agents' offices 22 Puerto Rico: 

Tax Form 1040-PR 39-40 

Tax on' manufactured products from 165 

Tobacco products withdrawn for consumption, from 264 

30 

27 

164 

163 

 134-146 

 157-158, 161 

 4, 162 

124-126 

 157, 160 

 180, 181 

268 

243 

27 

130, 157, 160, 162 

291 

26 

283 

43 
308 INDEX INDEX 309 

Refunds-Continued 

Explanation 

Number and amount, including interest, fiscal 1951-4952 

Regional finance offices: 

Establishment of additional 

Obligations incurred for 

Rent: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290, 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Reorganization of Internal Revenue Service: 

Advantages • 62-63 

History 55-56 

Reorganization Plan No. 1 of 1952: 

As submitted to congress by the President 67-71 

Charts showing organization of Bureau under 75-77 

Enactment of 56 

Implementation of 58-62 

Legal work of Bureau 44-46 

Legislation enacted 51 

Provisions 56-'58 

Reorganization Plan No. 1 of 1952. (See Reorganization of Internal Revenue Service.) 

Reorganization proceedings, under Bankruptcy Act 284 

Repeal of tax: 

Alaska Railroads 51 

Electrical energy 50 

Report to taxpayers: 

Chronology of actions taken to improve administration in the Bureau 

of Internal Revenue 99-106 

Duties of the Bureau of Internal Revenue 82-83 

Expansion of tax problems due to war 85-87 

Foreword by The Honorable John W. Snyder, Secretary of the 

Treasury 81 

Improvement program: 

Benefits 92-93 

Explanation of program 88-89 

Strategy of program 88 

Nature of the Bureau's job_ 84-85 

Provisions and accomplishments of Reorganization 94-95 

Six years of reconversion and modernization and a summary of results_ 87 

Size of the Bureau's job 83-84 

Reports, regulations, etc., cost of printing and binding 291 

Reproductions, cost of printing and binding 291 

Retail dealers: 

Special-tax payers purchasing special-tax stamps 268, 270, 272 

Special taxes 118 

Retailers' excise taxes: 

Receipts (see also respective types) 4 

Refunds 27 

Returns examined: 

Examination 8 

Mathematical verification 7 

Selection of returns 7 

Returns filed, number, by type of return, fiscal 1951-1952 6 

Revenue Act: 

1950 34, 45 

1951 34, 45 

Revolvers and pistols, tax 132, 157, 160, 163 

Rewards to informers 39, 45 

Pan 

Rice, used in production of fermented malt liquors and cereal beverages__ 221, 

222 

Rubber. (See Synthetic rubber.) 

Rules of conduct, revision of 

Rulings issued by Internal Revenue Service 

Rum: 

Bottling 

Denatured: 

Losses 

Manufacturers operating 

Production 

Removals 

Stocks on hand 

Losses 

Production 

Stocks on hand 

Withdrawals: 

Tax-free 

Tax-paid 

Rye, used in production of vinegar 

136, 158, 161, 163 

District supervisors' offices 

Internal revenue agents 

Sea stores, for use as: 

Cigarettes 260 

Cigars 254 

Manufactured tobacco, snuff, cigars, and cigarettes 265 

Seizures and arrests for liquor law violations 17, 245, 246 

Seizures and penalties, distilled spirits, tax 112 

Silver bullion, sale or transfers of, stamp tax 126, 157, 160, 162 

Silver, redemption of stamps 27 

Snuff (see also Tobacco and snuff): 

Manufactured, production of 262 

Receipts 156, 159, 162 

Withdrawn for consumption 264 

Social Security Act Amendments of 1950 34, 39 

Social Security Tax Form SS-8, revision of 40 

Sorghum grain, used in production of: 

Distilled spirits 

Ethyl alcohol, undenatured 

Fermented malt liquors and cereal beverages 221, 222 

Soybeans and soybean products, used in production of fermented malt 

liquors and cereal beverages 222, 223 

Special or occupational taxes: 

Brewers, dealers in malt liquor 156, 159, 162 

Collections, summary 4 

Distilled spirits 116 

Fermented malt liquors 120 

Firearms 144 

Marihuana „- 142 

Narcotics 140 

Rectifiers, liquor dealers, manufacturers of stills 156, 159, 162 

Returns filed 6 

Special-tax payers purchasing special-tax stamps 268-273 

Wagering 146, 157, 161 

Wines, cordials, etc 118 

26 

26, 27 

 41-42 

290 

38 

34-35 

219,220 

221 

221 

 220, 221 

 220, 221 

220, 221 

209 

 12, 202, 203 

 209, 210 

 207,208 

204,205,206 

 241,242 

S 

Safe-deposit boxes, lease of, tax 

Salaries: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington_ 290, 

291 

289, 291 

288, 291 

 199, 200 

182, 183 
310 INDEX INDEX 311 

Page 

Special-tax payers purchasing special-tax stamps, number of___. ______ 268-273 

Spirits and wines, rectification tax, legislation exempting 

Spirits, production by registered and fruit distilleries 12 Sporting goods, manufacturers' excise tax 130, 157, 160, 163 

Stamp taxes (see also Receipts): 

Bonds, issues of capital stock, deeds of conveyance, etc 124, 157, 160, 162 Playing cards 126, 157, 160, 162 

Silver bullion sales or transfers 126, 157, 160, 162 

Transfers of capital stock and similar interest sales 124, 157, 160, 162 

Stamp transfer taxes, legislation exempting 51 Stamps: 

Case, for distilled spirits bottled in bond 156, 159, 162 

Cigar, value of 258 

Claims for redemption of 243 

Container 4, 114, 156, 159, 162 

Distilled spirits intended for export 114, 156, 159, 162 

Internal Revenue, issued to collectors of internal revenue and the 

Postmaster General 275 

Redemption of 27 

Special-tax payers purchasing special-tax stamps 268-273 Statutory notices: 

Appellate Staff decisions 278 

Defaults after 23 

Deficiency, 90-day 8 

Issued in cases of protest 22 

Stills: 

Manufacturers' tax 114 

Number of manufacturers purchasing special-tax stamps 268 

Seizures of 17, 245, 246 

Stipulations: 

Additional assessments based upon 170-171 

Cases disposed of, number 24, 279, 280 

Results obtained in 279 

Sugar: 

Tax receipts 134, 157, 163 

Used in manufacture of: 

Tobacco 250 

Vinegar 242 

Sugar and sirups, used in production of fermented malt liquors and cereal 

beverages 222, 223 

Suits: 

By taxpayers 283 

By United States 283 

Sulphite liquors, used in production of undenatured ethyl alcohol 182 

Supervisors, Accounts and Collections, obligations incurred for 290 

Supplies and equipment: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 29(1 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Supreme Court: 

Internal Revenue cases, number, decided in 25 

Tax Court cases, on review in 282 

Synthetic rubber program, production of butadiene for 12 

Synthetic rubber, quantity of specially denatured alcohol used in manufacture of 14 

T 

Page 

Tax conventions, affecting the Bureau of Internal Revenue 46-47 

Tax Court of the United States, The: 

AdditionaL assessments, made after decision by 171 

Analysis: 

Cases disposed of 281 

Cases on review in courts of appeal or Supreme Court 282 

Appeals to 174, 280 

Applications for excess profits tax relief, pending before 29 

Cases docketed by 279, 280, 281 

Disposition of cases petitioned to 24 

Tax liability, changes in 25-31 

Tax return forms: 

Cost of printing and binding 291 

New mailing assembly 40 

Revision of 39-40 

Tax Transfer Voucher, Form 514, revision of 40 

Taxes. (See Collections; Receipts; specific types.) 

Taxpayers: 

Adjustments protested by 22 

Appeals by, number of cases 282 

Report to 79-106 

Suits by 283 

Telegraph: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290, 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Telephone: 

Local service tax 134 157, 161, 163 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290, 291 

District supervisors' offices 289, 291 

Internal revenue agents 285, 291 

Telephone, telegraph, radio, cable, leased wires, etc., tax 134, 157, 161, 163 

Television sets, radio sets, phonographs, components, etc., manufacturers' 

excise tax 128, 157, 160, 162 

Tentative adjustments: 

Explanation 29 

LIFO 30 

Summary of applications, fiscal 1951-1952 30 

Tires and tubes, manufacturers' excise tax 157, 160, 162 

Tobacco (see also Cigarettes; Cigars; Receipts; Tobacco and snuff; Tobacco taxes): 

Chewing and smoking 

Factories operated, number 

Fine-cut 

Imported 

Leaf: 

Dealers in 

Exported by dealers 

Received from farmers 

Used in manufacture of cigars, cigarettes, and tobacco and snuff_ 

264 

 250, 252, 253, 263 

 251, 262 

264 

248 

248 

248 

261 
310 INDEX INDEX 311 

Page 

Special-tax payers purchasing special-tax stamps, number of____ -- 268-273 

Spirits and wines, rectification tax, legislation exempting 51 

Spirits, production by registered and fruit distilleries 12 Sporting goods, manufacturers' excise tax 130, 157, 160, 163 

Stamp taxes (see also Receipts): 

Bonds, issues of capital stock, deeds of conveyance, etc_ 124, 157, 160, 162 

Playing cards 126, 157, 

Silver bullion sales or transfers 126, 157, 160, 162 

Transfers of capital stock and similar interest sales 124, 157, 160, 162 

Stamp transfer taxes, legislation exempting 51 Stamps: 

Case, for distilled spirits bottled in bond 156, 159, 162 

Cigar, value of 258 

Claims for redemption of 243 

Container 4, 114, 156, 159, 162 

Distilled spirits intended for export 114, 156, 159, 162 

Internal Revenue, issued to collectors of internal revenue and the 

Postmaster General 275 

Redemption of 27 

Special-tax payers purchasing special-tax stamps 268-273 Statutory notices: 

Appellate Staff decisions 278 

Defaults after 23 

Deficiency, 90-day 8 

Issued in cases of protest 22 

Stills: 

Manufacturers' tax 114 

Number of manufacturers purchasing special-tax stamps 268 

Seizures of 17, 245, 246 

Stipulations: 

Additional assessments based upon 170-171 

Cases disposed of, number 24, 279, 280 

Results obtained in 279 

Sugar: 

Tax receipts 134, 157, 163 

Used in manufacture of: 

Tobacco 250 

Vinegar 242 

Sugar and sirups, used in production of fermented malt liquors and cereal 

beverages 222, 223 

Suits: 

By taxpayers 283 

By United States 283 

Sulphite liquors, used in production of undenatured ethyl alcohol 182 

Supervisors, Accounts and Collections, obligations incurred for 290 

Supplies and equipment: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Supreme Court: 

Internal Revenue cases, number, decided in 25 

Tax Court cases, on review in 282 

Synthetic rubber program, production of butadiene for 12 

Synthetic rubber, quantity of specially denatured alcohol used in manufacture of 14 

T 

Page 

Tax conventions, affecting the Bureau of Internal Revenue 46-47 

Tax Court of the United States, The: 

Additional assessments, made after decision by 171 

Analysis: 

Cases disposed of 281 

Cases on review in courts of appeal or Supreme Court 282 

Appeals to 174, 280 

Applications for excess profits tax relief, pending before 29 

Cases docketed by 279, 280, 281 

Disposition of cases petitioned to 24 

Tax liability, changes in 25-31 

Tax return forms: 

Cost of printing and binding 291 

New mailing assembly 40 

Revision of 39-40 

Tax Transfer Voucher, Form 514, revision of 40 

Taxes. (See Collections; Receipts; specific types.) 

Taxpayers: 

Adjustments protested by 22 

Appeals by, number of cases 282 

Report to 79-106 

Suits by 283 

Telegraph: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290, 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Telephone: 

Local service tax 134 157, 161, 163 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 290, 291 

District supervisors' offices 289, 291 

Internal revenue agents 288, 291 

Telephone, telegraph, radio, cable, leased wires, etc., tax 134, 157, 161, 163 

Television sets, radio sets, phonographs, components, etc., manufacturers' 

excise tax 128, 157, 160, 162 

Tentative adjustments: 

Explanation 29 

LIFO 30 

Summary of applications, fiscal 1951-1952 30 

Tires and tubes, manufacturers' excise tax 157, 160, 162 

Tobacco (see also Cigarettes; Cigars; Receipts; Tobacco and snuff; Tobacco taxes): 

Chewing and smoking 264 

Factories operated, number 250, 252, 253, 263 

Fine-cut 251, 262 

Imported 264 

Leaf: 

Dealers in 248 

Exported by dealers 248 

Received from farmers 248 

Used in manufacture of cigars, cigarettes, and tobacco and snuff_ 261 
312 INDEX INDEX 313 

Tobacco-Continued 

Manufactured and removed: Page. Tax-paid 251 Without payment of tax 251 Materials used in manufactured 250. 

Plug 251, 262 Production of manufactured 262 Products withdrawn for consumption 264 Quantity used in manufacture of: 

Cigarettes 

Cigars 

Quasi tobacco manufacturers classified 

Removed for: 

Export 251 Sea stores, use as 251 United States, use of 251 Scrap chewing 262 Scrap chewing, smoking and snuff 251 Scraps 248, 250, 252, 253, 258. Scraps, cuttings, and clippings 254, 259, 261 Siftings 252, 253 Smoking 262 Stemmed 248, 250, 252, 253, 254, 258, 259, 261 

Stems 

Twist 248, 250, 252, 253 

251, 262 Unstemmed 248, 250, 252, 253, 254, 258, 259, 261 

Tobacco activities 18 Tobacco and snuff: 

Leaf tobacco used in manufacture of 

Manufactured and removed 

Summary of operations, manufacturers of 

Withdrawn for: 

Consumption 

Export 

Shipment or delivery, as sea stores 

Tobacco taxes (see also Receipts): 

Claims 

Leaf dealers penalties, etc 

Manufacturers 

Redemption of stamps 

Refunds 

U 

Unemployment insurance: 

Claims 

Receipts 4, 112, 150, 156, 159, 162 

Form 940, revision of 

Refunds 27 

Returns filed 

United States: 

Armed Forces, member, legislation amending tax imposed 48 

Court. (See respective names of courts.) 

Court of Claims 

Courts of appeal 

District Court 

Possessions, coconut oil 

Supreme Court 

Tax Court 

V 

Vegetable, coconut, and other oils processed, tax 142-144, 158, 161, 163 

Vermouth. (See Wines.) 

Vinegar: 

Materials used in production of 

Plants: 

Number operated 

Vaporizing process, using 

Production 

Stocks on hand 

Virgin Islands, Tax Form 1040-VI 

Vodka: 

Bottling 

Legislation affecting: 

Rectification tax 

Transfer by pipeline 

Losses 

Production 

Stocks 

Withdrawals, tax-paid 

Volatile fruit-flavor concentrates, production of 

Wagering tax: 

Excise and occupational 

Law, violations of 

Receipts 

Redemption of stamps 

Refunds 

Regulations 

Special-tax payers purchasing special-tax stamps 

Warehousing and bottling permits 

Warrants for distraint 

Wheat, used in production of: 

Distilled spirits 

Ethyl alcohol, undenatured 

Fermented malt liquors and cereal beverages 

Vinegar 

Whiskies and brandies, legislation amending rectification tax 

Whisky: 

Bottling 

Losses 

Premises operated, number 

Production 

Stocks en hand 

Withdrawals: 

Tax-free 

Tax-paid 

 259,261 

 254,258,261 

252-253 

261 

251 

263 

264 

 265, 26• 

265- 

30 

157, 160 

122-124 

27 

27 Toilet preparations, retailers' excise tax 134, 157, 161, 163 

Trade practices, violations of Federal Alcohol Administration Act and internal revenue laws 16. Transfers in bond of: 

Distilled spirits to industrial alcohol plants and bonded warehouses_ _ 12-13 

Ethyl alcohol to registered distilleries and internal revenue bonded 

warehouses 14-15 Transportation taxes: 

Oil 134, 157, 161, 163 

Persons 136, 158, 161, 163 

Property 136, 158, 161, 163 Travel expenses: 

Obligations incurred for: 

Appellate Staff field divisions 289, 291 

Chief Counsel field divisions 290, 291 

Collectors of internal revenue 286, 291 

Departmental Service and field forces operating from Washington 

supervisors' o offices 

290, 291 

District s ffi 289, 291 

Internal revenue agents 288, 291 

Treasury Decisions 34, 35, 44 

Trust accounts, collections for credit to 163. 

Page 

30 

 21,22,24,25 

25 

 21,25 

144 

22,25 

 21,22,23,24,25 

OM 

 241-242 

242 

241 

15,242 

242 

40 

 219,220 

51 

47 

209 

 12,202,203,217 

 209,210 

204,205 

15,243 

50 

19 

 4, 146, 157, 161, 163 

27 

27 

34 

272 

 180, 181 

20, 92 

 199, 200 

182, 183 

221, 222 

242 

48 

 219, 220 

209 

215 

12, 202, 203, 215 

209, 210, 211-212, 215 

 207, 208 

204, 205, 206, 215 
INDEX 314 

Wholesale dealers: 

Palls e 

Special-tax payers purchasing special-tax stamps 268, 270, 27 

Special taxes 

140 

180 

Wholesale permits 

 180, 181 

Wines (see also Distilled spirits and wines): 

Aperitif other than vermouth: 

Losses 

 238 

238 

Premises operated, number 

, 240 

238, 240 

Production 238, 240 

Stocks on hand 

Withdrawals: 238 

Tax-free 

Tax-paid 

 14, 238, 24

181

0 

Permits, producers and blenders 

 180, 

4, 116-118, 156, 159, 162, 165 

Receipts 

Materials used in production of 

Rectified: 216 

13, 217 

Production 2 

Seizures 

 45, 246 

Losses 

Sparkling: 236 

Premises operated, number 

 236, 240 

Production 

 236, 240 

236, 240 

Stocks on hand 

Withdrawals: 

ree 

 236 

Tax-free 13, 236, 240 

Tax-paid 

Losses 

Still: 234, 235 

Materials used in production of 

 228, 229 

Premises operated, number 

 235, 239 

P 

Pducti 

 13, 230, 231, 234, 235, 239 

Storocks oon n hand 

 234, 235, 239 

Treatment of wines 

 230, 231 

Withdrawals: 232, 233, 234, 235 

Tax-free 

Tax-paid 

 13, 232, 233, 234, 235, 239 

Losses 

Vermouth: 237 

Premises operated, number 

 237, 240 

Production 

 237, 240 

ro 

Stocki on hand 

 237, 740 

Withdrawals: 237 

Tax-free 

Tax-paid 

 14, 237

159, , 2162 

40 

Wines, cordials, etc., taxes 

 116-118, 156, 

Wires, leased, tax 

134 

Withheld taxes (see also Employment; Individual income; Payroll taxes): 

Income and old-age insurance: 30 

Claims 110, 156, 159, 162 

Receipts 

Returns filed 

 

110 

6 

Railroad employees' representative 

Railroad employment compensation 

 110 

156, 15 

Railroad retirement 

159, 162 

Withholding agents, returns filed 

6 

40 

Withholding Statement, Form W-2, revision of 

Y 

Yeast mash beer, used in production of: 185 

Ethyl alcohol 242 

Vinegar 

O