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Introduction

Shirley 0. Peterson

Commissioner

As America prepares for the 21st

Centur.y, institutions, public and private,

are facing a call from the American

people to move away from "business as

usual." The call is to do a better job, in

short, to change. The Intemal Revenue

Service is answering this call. We realize

that fundamental change is necessary to

preserve our system oftax adinM*Ot

tion. We have underwav i)lans..to Ino(

our workforce. Our goal is to'irlake'. '~V

breakthrough improvements in t6

quality of the service that we provide

to our customers.

During 1992, the Internal Revenue

Service made significant progress

toward this goal. We developed a vision

oftax administration for the 21st

Century that, when implemented, will

transfonn the tax system. We envision a

tax system where filing requirements

can be met quickly, easily and inexpensively through electronic transmission of

data. In this system, taxpayers' account

inquiries will be resolved immediately

li----r-rk rocesses andmtfaiu

emize our computer systems, ftrearf?~..~-

Fundamental change by telephone through "one-stop seris necessary in order vice." Our vision also contemplates a

to preserve our system leaner, flatter organization with a highly

of tax administration. skilled and empowered workforce

having a passion for customer service.

The vision for the 21st Century is

firmly rooted in our three objectives:

improving voluntary compliance; reducing burden on taxpayers; and improving

our own quality-driven productivity

and customer satisfaction. We intend to

raise the rate of voluntary compliance

by ten percentage points before the end

of this century by employing the philosophy and techniques of Compliance

2000. New approaches to research

should provide better understanding of

the factors affecting compliance. Where

needed to improve compliance, we will

StatisticoON

of Income

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provide taxpayers assistance and education. We will attempt to resolve problems ,up-front," before mistakes are We envision a

made; and we will consider the differing tax system where filing

needs of the couDtyy's diverse population. requirements can

Although we will emphasize taxpayer be met quickly, easily,

education and assistance, we will not and inexpensively.

abandon our traditional enforcement

techniques. We expect that, before the

decade is out, we will be able to measure, qo~jnphance and to identify nonace with great precision. Such

~Lton wiLl Vermit us to alrect

!-oiiVeifdr~ement resources more

and promptly than ever before.

7;39inhiny millions of taxpayers who file

their returns and pay their taxes voluntarily deserve no less.

Fiscal Year 1992 has been a very

productive year. While we spent a good

deal of time looking ahead, we did not

neglect the work at hand. As reflected

in the statistics contained in this Annual

Report, we had a busy and successful

year. One ofour proudest achievements

was the selection of the -Ogden Service

Center as the winner of the President's

Award for Quality - a first not only for

the Service but for any civilian agency.

Our commitment to you is to maintain

the emphasis on quality and to seek

continuous improvement in our service

to the American people.

Shirley D. Peterson

Commissioner
Overview

The United States tax system at the end

of the 20th Century operates in a

dynamic tension. The system generates

levels of efficiency and effectiveness

without parallel in the world. However,

current processes must be continuously

improved to meet the challenges ofthe

next decades.

TwIRS is the first Our 1992 operations produced

civilian agency to impressive results, but "me picture Is riot

receive the President's complete without focusing on changes

Award for Quality. that show what the system of the future

should be. The accomplishments of

1992 were substantial:

m The IRS became the first civilian

agency to receive the President's Award

for Quality~ The Ogden (Utah) Service

Center received this award for work

quality and customer service. The

President's Award is the public sector

equivalent of the Malcolm Baldrige

Award. it has been given in only three

of the five years it has existed.

m We streamlined procedures for

installment agreements and offers in

compromise oftax debts. Our efforts

made these collection tools accessible

and useful alternatives for taxpayers

who need help meeting their obligations.

N We began a major initiative to bring

millions of nonfilers back into the tax

system. The comprehensive strategy

involves all parts of the IRS. It offers

outreach and assistance for those who

need help and reserves enforcement for

those who will comply in no other way.

s Momentum built for a reduction in

the burden of tax administration.

Efforts in this area included revamping

complex rules for the payroll tax deposit

system and the successful test of telephone tax filing - TeIeFile.

2

0 Tax Systems Modemization - a

fundamental strategy for redesigning

tax administration - gained added

support from successful contract awards

for major procurements. These awards

are evidence of careful management

ofprocurement activities.

Sometimes developments such as these

are not easy to describe statistically, and

their importance may be overlooked.

But these and other accomplishments

should be noted. They show how we are

moving toward the goals of increasing

voluntary compliance, reducing taxpayer burden and improving customer satisfaction and quality-driven productivity.

In 1992 we developed the vision of

tax administration for the 21st Century

(see section on the IRS ofthe future).

Putting the vision in writing is an

important step in showing the logic of

how the system must change to meet

the needs ofmodern America. Further,

the vision statement is evidence that we

can only achiieve our goals through d-he

strategies we are following:

m adopting a philosophy of using

outreach and education to promote

voluntary compliance,

• modernizing the tax system,

• becoming a total quality organization,

• understanding and valuing the diversity of taxpayers and of our employees,

m demanding the highest standards

of ethics from ourselves in everything

we do.

These strategies lead us to the vision,

and that vision has the potential to

make the future's tax administration

much different from today's. In 1992 we

adopted a systems approach to change.

As part of the plan to be~ome a total

quality organization, we quickly recognized that real progress comes from

improving and managing systems - not

merely managing people, paper and

We are moving toward

the goals of increasing

voluntary compliance,

reducing taxpayer

burden and improving

customer satisfaction

and quality-driven

productivity.
The key to making

tax administration

different will be longterm, continuous

improvement in the

quality of our work, our

productivity, and

taxpayers' satisfaction

with the job we do.

machines. The key to making tax

administration different will be longterm, continuous improvement in the

quality of our work, our productivity,

and taxpayers' satisfaction with the job

we do.

We must make improvements in

every aspect of our contact with the

public. Areas for improvement include

tax forms, information and education

programs, the time it takes to complete

tax audits, and procedures to collect

delinquent taxes. We must focus more

closely on what the taxpayer wants and

values from the IRS and revamp the

way we measure what we do. We must

ensure that our employees have the

skills to do the job and involve them mi

improving the work processes. We must

give them the authority they need to

do the job and hold them accountable

for taxpayer satisfaction. We also

must guarantee that our work systems

can deliver high quality products and

seroices.

In 1992 we began implementing a

systems approach by defining the core

business systems of tax administration.

These systems cut across such traditional

functional boundaries as Examination,

Collection, and Taxpayer Services.

We define the core business systems as

follows:

Value Tracking: knowing more about

what taxpayers really want and expect of

their tax administration system and

what our role should be in delivering it

to them.

Informing, Educating and Assisting:

ensuring that we have the most

effective and efficient information,

education, and assistance activities to

help taxpayers comply.

Managing Accounts: receiving account

information promptly, keeping accounts

accurately, correcting errors in a timely

manner, and providing information

instantly to those who are authorized to

have it.

Ensuring Compliance: preserving the

integrity of the voluntary tax system by

finding the reasons for noncompliance

and addressing the basic problems.

Resourcing: doing our job at the lowest

cost to the taxpayer for all resources - Total tax revenues

technological, financial and human. were $1.12 trillion.

We cannot change the tax system

overnight. Some change will be incremental; other change will be of a breakthrough nature. We made progress

toward both in 1992.

Our plans for the future provide

the backdrop for a group of snapshots

portraying IRS operations for 1992:

m Total tax revenues for 1992 were

$1.12 trillion, up almost 3 percent from

the $1.09 trillion collected in 1991.

Approximately 60 percent of collections

for both years were corporate and individual income taxes.

m The 1992 budget was $6.7 billion, an

increase of $563 million over 1991.

Salary and benefits for the IRS staffing

ofjust over 115,000 people, plus other

personnel compensation, represented

72 percent ofthe total budget. Nearly

Number of Returns Filed and Revenue Collected

millions of returns

1988 1989 1990 1991 1992

trillions

$1.15
Accuracy Rate for Telephone Inquiries,

Number of Toll-Free Calls and Number of Tele-Tax Calls

60

1989

E Taxpayers claimed $11.2 billion in

earned income tax credits on 13.5

million individual returns. The increase

from 1991 (12.5 million returns claiming $7.4 billion) is the result of extensive

information and outreach efforts

to inforin eligible taxpayers about the

credit and recent tax law changes.

These changes increased the credit

amounts to a maximum $2,020 from

$953 the prior year.

0 The accuracy rate oftaxpayer assistance continues to improve, this year to

89 percent for telephone inquiries.

We served 3.5 million more taxpayers

through telephone and office assistance

programs (nearly 75 million this year).

Our programs provided more than 3

million low income, elderly, and nonEnghsh-spealdng taxpayers with help in

filing their returns. More than 84,000

volunteers at Volunteer Income Tax

Assistance (VITA), and Tax Counseling The accuracy of

for the Elderly (TCE) sites provided taxpayer assistance

this help. continues'to improve.

N Delinquent tax accounts collected

totalled $24.23 billion, essentially

unchanged from the $24.28 billion

collected in 1991.

22

1990 1991 1992

$282 million was dedicated to modernization efforts. The cost ofcollecting

each hundred dollars oftax was 58 cents.

m We processed 204 million returns

of all types, an increase from the 203.7

million returns that came in during

1991. Income tax returns filed by

individual taxpayers increased from a

little more than 114 million last year to

almost 115 million in 1992. Electronically filed returns were 9.4 percent of

all 1992 individual returns (10.8 milElectronic returns lion), compared with almost 6.7 percent

increased by 42 (7.6 million) in 1991 -an increase of

percent to.10.8 million 42 percent in the number ofelectronic

returns. returns filed.

m Individual taxpayers claimed 86

million of the 89 million refunds issued,

and their refunds averaged $1,027. This

is a small increase from 1991, when

we issued a few more than 84 million

refunds, averaging $983. Individual

refunds account for 97 percent of all

refunds claimed, and 75 percent of all

individual income tax returns resulted

in refunds for the taxpayers.

S Criminal investigations of tax crimes

increased. Charges were filed in almost

3,500 cases, and prosecutions resulted

in nearly 2,800 convictions or guilty

pleas.

E The number of individual income tax

returns examined declined by some

84,000, slightly lowering the individual

coverage rate from 1.00 percent to 0.91

percent. Audits in other categories

increased, notably corporation, excise,

and employment tax returns. Total

additional taxes and penalties in all categories were more than $217 billion,

compared to $31 billion in 1991. In the

document matching program, we compared almost I billion documents with

taxpayer filings. We sent more than 5

million notices, resulting in $4.3 billion
in additional tax assessed, down from

the $4.8 billion in 1991.

a Accounts receivable increased $7.5

billion over the 1991 level. The total for

active accounts in 1992 was $770.9 billion,

up from $63.4 billion in 1991. We

estimate that $28.7 billion is collectible

from these accounts. As part of the

overall attention to accounts receivable,

we improved our procedures for processing payments and account notices.

These procedures 'Kept us frol't-1 erroneously including more than $18 billion

in the accounts receivable totals and

from issuing erroneous notices to collect this money. The dollar amount of

notices we sent to taxpayers for late

taxes increased by more than $9 billion

this year - $6.6 billion for late payments due from business taxpayers.

0 The Inspection Service issued 101

internal audit reports during 1992. As a

result of these reports, we took corrective action in our accounts receiva7ble

program, the Tax Systems Modemization program and many other IRS

programs. These management actions

produced $56 million in additional revenues and better utilization offunds.

m We conducted two major customer

satisfaction surveys to determine how

well we are meeting our customers'

needs and to aid us in planning further

improvements. Through these surveys

we learned that Americans, on a 10-

point scale, rate the IRS 6.5 on overall

performance, with one meaning poor

and 10 meaning excellent. One-third of

the respondents gave us 8, 9 or 10.

The survey provided a wealth of other

information, including satisfaction vvith

various aspects of our service, and what

constitutes burden.

This collection of snapshots gives a

general indication of how we are progressing, toward the three major go-als

we have set for ourselves in the IRS.

The following sections ofthis repor-t list

the specific accomplishments of 1992.

Improving Voluntary Compliance

The first major goal ofthe Internal

Revenue Service is to improve voluntary compliance. During 1992, we made

sieTtificant provess in a new approach

to designing tax administration. After

four decades of emphasis on enforcement as the primary tool for promoting

compliance, experience has proved that Our first goal is

our traditional enforcement approach to improve voluntary

alone can not sustain appropriate compliance.

compliance levels. For that reason, we

began in 1990 to shape a new approach

to voluntary compliance, called

Compliance 2000. This is a primary

vehicle for refocusing our compliance

philosophy and integrating its principles

into all aspects of IRS programs.

Compliance 2000 philosophy differs

from the traditional approach in the

importance placed on identifying

the root causes of noncompliance and

Accounts Receivable and Net Collectibles

billions

$80

$70

$60

~M Accounts Receivable 0 Net Collectibles

1988 1989 1990 1991

I

1992

5
Improved data will

allow us to implement

more comprehensive

compliance strategies

that take Into account

the unique characteristics of different

groups within society.

6

moving to address the underlying

causes. Compliance 2000 relies on finding compliance characteristics to

differentiate taxpayers, enabling us to

find solutions before taxpayers make

mistakes, help those having difficulty

complying, and to focus enforcement

resources on those cases where they

will be most productive.

An important element of

Compliance 2000 is expanding our

research capability. Based on improved

data, we can implement more comprehensive compliance strategies that take

into account the unique characteristics

ofdifferent groups within society -

known in business as market segments.

The primary research method we have

used until now is the Taxpayer

Compliance Measurement Program

(TCMP).

TCMP data come from special periodic audits of taxpayers' returns selected at random. For more than 25 years

TCMP has provided data to moni"Lor

compliance trends, estimate the tax gap,

identify areas of noncompliance, and

develop or update formulas used to

identify tax returns for audit. Now our

commitment to Compliance 2000

means that we need an enhanced

research component that provides more

timely information and is less burdensome to the taxpayers than is TCME

This year we began the redesign ofour

research efforts. TCMP surveys will

have smaller samples and will begin to

capture infon-nation on the reasons why

taxpayers do not or cannot comply with

the tax law. At the same time we will

increase our use of other compliance

data, including data from current examinations and other enforcement actions

and special studies of compliance

issues.

The first step in the Compliance

2000 refocus is to identify the most

important challenges to voluntary compliance. Then with enhanced research

capability, we will analyze current programs and implement a series ofinitiatives to try new approaches to improving compliance. After some study, we

believe the most important challenges

to our system of tax administration

come from those who fail to

• file returns required by law;

• remit unpaid taxes;

• report, withhold or pay appropriate

trust fund taxes for their employees;

m report self-employment income

accurately;

N comply with tax laws regarding their

international transactions;

m report, file and pay excise taxes; or

E comply with tax laws regarding oversight of employee plans and exempt

organizations.

Other challenges to improving tax

administration include continuing

efforts to improve document matching,

as well as developing planning tools to

address up-front the tax administration

aspects of emerging social and economic issues.

Nonfilers

The failure to file returns when

required represents one of the most

serious challenges to our system. Our

most recent estimate suggests that

nonfilers account for $7 billion to $10 Citizens who do not

billion of the tax year 1992 individual file returns when

tax gap. An estimated 9 million to 10 required represent a

million individual and business returns serious challenge

have not been filed, and many nonfilers to a voluntary system.

have been delinquent for several years.

Approximately one-third of nonfilers

are entitled to tax refunds, largely

because they are wage earners who

have had taxes withheld from their

income. Recent increases in earned
income credit benefits mean even more

nonfilers mav be due refunds.

TraditioQ nonfiler programs use

infon-nation documents and analyses of

past filing patterns to identify nonfilers.

In 1992 these methods produced more

than 4.6 million delinquent tax returns,

resulting in more than $11 billion net

assessments. The information returns

matching program generated nearly 5.3

million notices for both nonfiling and

underreportin~4, resulting in assessment

of $4.3 &Uion in additional tax, interest

and penalties.

In 1992 a multi-functional initiative

on nonfilers began because ofa special

test in an IRS field office. In the test a

specially trained cadre of agents contacted apparent nonfilers identified from an

analysis ofinfon-nation returns and

Forms 1099 and W-2. The results of the

test, with other analyses, led to development ofa national, two-year nonfiler

program involving all IRS functions.

Examination will dedicate 2,275 staff

positions for nonfiler efforts for two

years beginning October 1, 1992. These

employees will develop nonfiler cases

from information reports and other

sources. They will make field contacts

with those who appear not to have filed.

During 1992 we trained employees to

handle the unique problems associated

with nonfiler cases. These problems

include making payment arrangements

or waiving penalties in appropriate

situations.

A major education, information and

assistance campaign is planned to let

nonfilers know that help is available to

them if they want to get back in the

tax system. As a part of this program,

we established volunteer assistance and

special assistance sites in cooperation

with major tax practitioner organizations. Participating organizations included the American Bar Association and

the National Association of Enrolled

Agents.

The purpose of this program is to

solve nonfiler problems through assistance and civil enforcement programs

and not to prosecute taxpayers who

have made simple mistakes. However,

it is clear that some nonfilers have

criminal motives, and thus Criminal

Investigation play's a key role. Through

coordination with the Department of

justice, Criminal Investigation will

upgrade some failure-to-file cases to

felony charges. Felony convictions bring

fines and prison sentences.

Nonpayment of Taxes

Our system of taxation is based on the

willingness ofcitizens to assess and pay

their taxes voluntarily. Two essential

parts ofthis system are filing timely

returns and paying the full tax liability.

Unless taxpayers pay the amount due

through withholding, through estimated

tax payments, or when the return is

filed, the IRS must take some follow-up

action, starting NMU111 a bill.

We need up-front efforts to keep

taxpayers from encountering problems

paying their taxes, because the longer a

balance is owed, the greater the possibility it cannot be collected. Due to

required penalty and interest additions,

balances due begin to pyramid. The

increasing debt makes it difficult for

taxpayers to pay the arrearages and

make current payments. IRS estimates

suggest that about two-thirds of the

individual income tax remittance gap

results from taxpayers' not paying the

full amount of the tax they report on

their individual income tax returns. The

remainder results from employers' not

sending to the government the income

tax they withhold from their employees'

wages.

In 1992 we made major changes in

procedures for using installment

agreements and offers in compromise

A- Mmuuut -MG-thh-JUS af

the individual income

tax remittance gap

results from taxpayers'

not paying the full

amount of the tax they

report on their individual income tax returns.
Number of Cases Going to

Installment Agreement and Dollar Amount

millions billions

$6.3

1988

8

1989 1990 1991 1992

of liabilities. Both procedures had been

in existence for many years. However,

procedural barriers 'Kept them frorn

being more effective devices for collecting delinquent accounts and building

voluntary compliance.

Installment agreements allow taxpayers to pay offthe balances they owe in

partial payments made over time.

Although interest and penalties continue, the option of an installment agreement often means the difference in

whether the taxpayer can remain compliant or not. We streamlined the procedures for individual taxpayers by not

requiring extensive financial data in

most cases. For small accounts, the filing of Notices of Federal Tax Liens may

not be necessary, thereby protecting

taxpayers' credit ratings.

In addition to employees in

Collection, now personnel in Taxpayer

Service, Returns Processing and

Examination can approve many installment agreements. We publicized our

willingness to discuss payment options

to encourage taxpayers who could not

pay to file anyway.

As a result, installment agreements

increased by 38 percent to 2.5 million

from 1.8 million accounts in 1991.

Dollars going to installment agreement

status increased by 46 percent -to

$5.7 billion from $3.9 billion in 1991.

Dollars collected from installment

agreements increased by 24 percent to

$2.3 billion from $1.3 billion in 1991.

Offers in compromise are not a first

choice for either the IRS or the taxpayer, but this year we moved to make

them a more viable option for taxpayers.

Under this procedure, the taxpayer

offers to settle the tax bill for less than

the total amount but for the maximum

the taxpayer and the IRS agree can ever

be paid. When the IRS accepts the

offer, the taxpayer commits to file and

pay all taxes due for five years or the

offer will be nullified. We use offers in

compromise to resolve accounts fl-lat -we

might otherwise have to declare currently not collectible. We also use offers

in compromise to avoid putting taxpayers into long-term payment agreements

that could make it hard for them to pay

current tax liabilities.

This year the number ofoffers in

compromise requested more than doubled, to nearly 18,000 from fewer than

9,000 in 1991. More importantly, the

number accepted more than doubled

-to well over 4,000. The acceptance

rate rose to 45 percent from 25 percent

last year. Taxpayer offers accepted

totaled $106 million on delinquent

accounts of $661 million. Last year the

total offers in compromise accepted

reached $37 million.

Wage Reporting

and Trust Fund Issues

Congress enacted the "pay-as-you-go"

tax withholdinv regime in 1943. Since

then, the payroll tax system has been

the key in collecting Federal and State
Payroll tax deposit

cases account for

almost $34 billion of

the $71 billion in

accounts receivable

and more than $18

billion in accounts

that are currently not

collectible.

income tax revenues, as well as contributions for social security and unemployment compensation. Payroll tax

deposits made by the nation's more than

5 million employers accounted for 70

percent of the $1.12 trillion in total revenue collections. During 1992, Federal

Tax Deposits were $784 billion -up

almost $30 billion from last year.

Compliance issues arise in several

ways. Employee earnings are underreported or misreported as another type

ofcompensation, anct Mile trust rund.

taxes withheld by the employer are not

paid over to the government in a timely

fashion or paid at all. Payroll tax deposit

cases account for almost $34 billion of

the $71 billion in accounts receivable

and more than $18 billion in accounts

that are currently not collectible.

In addition, the system ofperiodic

deposits made by employers was complex and burdensome, particularly for

small businesses. Each year, the IRS

nenahzes more, than 1.5 million emolovers for infractions of the deposit rules.

However, we abate more than 20

percent of the penalties and 60 percent

of the penalty amounts when taxpayers

request abatement and provide sufficient justification. The complexity of

the system is further shown by the fact

that employment tax cases account for

18 percent of all problems that require

intervention by the Problem Resolution

Program.

This year we issued new regulations

for the payroll deposit system (see the

section of this report on reducing taxpayer burden). We developed the new

regulations in concert with the small

business community and payroll professionals. They represent a major simplification of a system prone to errors,

penalties and noncompliance.

The work of the employment tax

examination program concentrated on

several aspects of noncompliance in

1992. The number ofemployment tax

returns audited increased to nearly

73,000 from nearly 58,000 because we

require such a review as part of a business audit. The employment tax program in Collection emphasized workers

misclassified as independent contractors. These taxpayers have no income or The new payroll

social security tax withheld. We esti- deposit regulations

mate that of those' workers who should simplify a system prone

be employees but are misclassified, up to errors, penalties

to 70 percent fail to file returns at all. In and noncompliance.

1992 we completed nearly 1,700 audits,

collected almost $19 million, and reclasU

rNA UV,VVV nArl Wo,-I- sifie' Aers as em~ployeess

rather than independent contractors.

Since starting this Collection program

in 1988, we have reclassified more than

400,000 workers and collected $52.5

million. The Compliance 2000 philosophy involves solving compliance

problems for large groups of taxpayers

before they file, rather than solving

individual taxpayers' problems after

they file. As part of this philosophy, we

met with several industry groups to

begin discussions about the proper classification ofworkers as a way to improve

voluntary compliance.

Number of Offers in Compromise Received, Number of Offers

Accepted and Amount of Liabilities Compromised

thousands of offers

20

1988 1989 1990 1991 1992

million

$75(
Failure to pay selfemployment taxes can

deprive people of social

security retirement,

disability or survivor's

benefits.

Taxpayers MU Deal in Cash

Businesses and Transactions

Cash transactions pose two challenges

to voluntary compliance. The first

involves small transactions among a

large number of self-employed taxpayers. The second involves large cash

transactions by a small number of taxpayers. An added dimension of the cash

payments issue is that self-employed

taxpayers who fail to report cash income

are also avoiding paying their selfemployment tai Failure to pay these

taxes can deprive them of social security

retirement, disability or survivor's

benefits.

We have made changes that -allow us

better to track large cash transactions.

Our efforts to encourage businesses to

comply with the requirement to submit

Form 8300 (Report of Cash Payments

Over $10,000 Received in a Trade or

Business) have paid off. In 1986 we

received only about 1,200 Fonns 8300;

in 1992 we recekved more thar. 140,000.

Forms 8300, along with the Currency

Transaction Reports (CTRs) submitted

by financial institutions that receive currency transactions over $10,000, have

great potential in identilying nonfilers

and unreported incorne.

International Business Issues

The role oftax administration in an

increasingly global economy means we

must alter our view of compliance

programs and issues that cross national

borders.

Helping countries new and old to

improve their tax administrations is

important to the United States. We held

information sharing meetings with

Russia, Albania, Bulgaria and Romania

to explain how our tax system works and

help them determine their needs. We

continued providing specialized assistance in Indonesia, Saudi Arabia,

Panama, Senegal, Poland, Puerto Rico

and the U.S. Virgin Islands.

Our primary focus, however, was in

assessing and improving compliance

levels in complex technical areas, such

as transfer pricing transactions with foreign related parties. Transfer pricing is

an area of ambiguity for both foreign

and domestic corporations. In 1989 (the

last year for which complete statistics

are final), 28 percent of foreign-controlled corporations (FCCs) reported

taxabie income on re-turns filed voitb. the

IRS. In the same year 41 percent of

domestic corporations reported taxable

income. While transfer pricing is an Transfer pricing cases

area of potential noncompliance by are extremely labor

FCCs, there is possible noncompliance intensive and involve

by U. S. corporations, particularly those complex and challengwith subsidiaries in tax havens. Transfer ing economic issues.

pricing cases are extremely labor intensive and involve complex and challenging economic issues.

In 1992 we reported to Congress

that, in the past two years, we have

increased by about 20 percent the number of international examiners -up

from 490 to 582 this year. Also in the

past two years, the number of FCC

returns under audit has more than doubled from 1,100 to 2,500. Returns

under examination in 1992 represented

nearly half the total assets and gross

receipts of FCCs. Recent law changes

make it easier for us to get better expert

witnesses for transfer pricing audits.

In 1992 we spent $16 million for such

experts.

The most progressive move, however, is the procedure for advanced

pricing agreements (APAs). We developed this procedure to agree up-front

with taxpayers (including FCCs) about

transfer pricing issues. Early agreement

limits the lengthy and time-6onsuming

controversies that can result from posttransaction audits. We reached five such

agreements in 1992, and we are considering 31 others. The new field assistance specialization program enables

10
the IRS national office to share expertise in international tax audit issues

with field offices. This program has

improved coordination between

Examination, Appeals and Counsel.

Excise Taxes

Some excise taxes support general government expenses. Others go to specific

trust funds for special purposes, such as

highways, the Superfund for removal of

hazardous substances, oil spifl liability,

aquatic resources, and harbor maintenance. Excise tax collections were

almost $34 biflion in 1992, an increase

of 10 percent over 1991 collections.

In the past few years, however, there

are indications of an excise tax gap in

motor fuel excise taxes. This tax gap

may involve criminal tax evasion. In

1989 the Department of the Treasury's

Office ofTax Analysis put estimates of

unpaid motor fuel excise taxes at $250

million. Of this, $100 million may be

from criminal activity.

During 1992, the IRS increased its

typical audit activity to 5.6 percent coverage. We also participated in a joint

FedState Motor Fuel Excise Tax

Compliance Project to enhance Federal

and State enforcement efforts.

Examination increased assessments

from audits by almost $23.8 million by

working cooperatively through the

FedState compliance project. Criminal

Investigation is investigating schemes to

defraud the government and has doubled the staff devoted to these investigations since 1990.

Employee Plans and

Exempt Organizations

Another area of concern is issues that

arise from administering the tax laws

related to exempt organizations and

employee plans. These issues involve

whether tax is due, as weU as the complexity mid burden of compliance. Both

exempt organizations and employee

plans are subject to tax on unrelated

business income, an area ofthe law

which has been a source of controversy

since its enactment in 1950. Exempt

organizations now engage in many types

of income-producing activities. The

Congressional intent of the unrelated

business income tax is to prevent unfair

competition between exempt organizations and their for-profit counterparts.

The very complexity of the rules for

employee plans is a cause for concern.

Congress has made many changes in

the law, beginning with the Employee

Retirement Income Security Act of

1974 (ERISA). These legislative moves

generated changes in regulations and

procedural modifications. The combined effect is large-scale complexity

that burdens plan administrators and

pension recipients and contributes to

incorrect reporting ofpension income.

Audits continue on these types of

returns, but we also undertook several

new initiatives. The role of the IRS in

1 1-- - 4-L4, ar- aciniii-tiste-ill-Ig'u'iel.Lwll.u~.~ _-

more one of regulating activity than of

generating revenues. The objective is to

keep the organizations operating as the

law intended. Operations should benefit

the employees and retirees enrofled in

pension plans and the recipients of philanthropy from exempt organizations.

Toward that end, we initiated a

closing agreement program this year for

exempt organizations and employee

plans. This means that when we conduct an examination we try to negotiate

monetary sanctions and corrective

actions. We try not to revoke the quahfied status of the employee benefit plan

or close the organization. In 1992 we

negotiated more than 200 such closing

agreements with employee plans covering thousands of employees.

Exempt organizations can be as large

and complex from a financial management standpoint as the larger taxable

corporations. This year we applied the

Our objective is to

keep pension plans and

exempt organizations

operating as the law

intended.

11
Number of Individual Returns Examined, Number of

Underreporter Notices Sent and Number of Nonfiler Notices Sent

millions

1988 1989 1990 1991 1992

same specialization techniques to hospitals and universities as we have used for

large corporations -the Coordinated

Examination Program (CEP). (For

more on CEP, see the section of this

report on reducing the burden on taxpayers.)

Information Reporting

In 1992 payers filed more than I billion

information documents. These documents were primarily wage statement

Forms W-2 and Forms 1099 reporting

income payments, such as interest and

More than 45 percent dividends and various other types of

of individual returns income. Information reports also cover

filed in 1992 are based deductions such as mortgage interest.

solely on data from More than 90 percent of all income

information documents. individuals report and more than 40

percent of deductions they claim are

reported to the taxpayer and the IRS on

an information document. About 45

percent of the 115 million individual

returns filed in 1992 are based solely on

data from information documents. For

these obvious reasons, timely and accurate documents are essential to taxpayers in filing a correct return. These documents also allow the IRS to make

appropriate adjustments without resorting to the traditional audit. In 1992, 3.2

percent of the information documents

IRS received were missing the taxpayer's identification number or it was not

correct. We could not use these 33

million documents.

The Information Reporting Program

Advisory Group is made up of representatives ofbusiness and payroll professionals, State governments and other

Federal agencies. This group met twice

in 1992. It advises how to improve the

information reporting system without

increasing burden and cost to the payor

community.

Our Martinsburg Computing Center,

where we file information documents,

set up a specialized telephone assistance

service for payors. The Center also

increased the number of seminars and

worked directly with payers who submitted data that we could not process.

We gave awards to recognize those payors who submi-tted erTor~frcc information consistently. This year 16 payers,

who filed a total of 22 million correct

infon-nation documents, received

awards.

Information matching is a key means

of ensuring compliance. Of the $4.3

billion in additional tax and penalties

recommended from the matching

program, 42 percent ($1.8 billion) was

due to underreported income and $2.5

billion from apparent nonfiling.

While the information document

matching program is very successful

for individual taxpayers, we know there

are major barriers to starting a similar

program for business returns. Because

these barriers exist, we are looking at

the area of business information reports

under our Compliance 2000 strategy.

Using this approach, w~ are identif~ing

areas of tax administration -market

segments -where there are comphance problems and where we need

additional information reports. These

12
Recent trends in

losses of single

employer plans are

disturbing.

market segments are much narrower

than a universal program. Our focus will

be in educating and supporting businesses and individuals in these segments to comply with tax obligations.

Emerging Issues

Compliance 2000 will give us a better

ability to deal with the tax administration implications of economic changes,

structural changes, and events that are

emerging over the next few years. Our

goal is to recognize issues that appear in

the business and economic environment

and address them in advance. Among

the issues we are addressing are the

underfunding of pension plans and the

increased number and complexity of

bankruptcy filings.

However, recent trends in losses of

single employer plans are disturbing.

According to the Pension Benefit

Guaranty Corporation, the average net

loss per terminated plan in the five-year

period 1975-80 was $400,000. The average net loss of 1986-91 was $6.9 mil1ion

- 17 times higher. Recent failures in

the insurance industry resulted in the

loss of pension benefits to hundreds of

thousands ofemployees. Employee

Plans began a major study of the scope

and level of pension plan funding. They

brought in an experienced pension

economist to take charge ofthe study.

Bankruptcy trends present another

compliance issue. Congress intended

the bankruptcy laws either to reha'Ibilitate a financially distressed debtor or

to assemble and liquidate the assets for

distribution to creditors. For obvious

reasons - bankruptcy has an impact on

the IR~ ability to collect delinquent

taxes.

In 1978 legislation reformed the

bankruptcy system. Through June 1992,

almost 6.9 million individuals and businesses filed for bankruptcy under the

1978 revised Bankruptcy Code. This

number is more than in the previous 80

years under the former Bankruptcy Act.

Since 1985, there has been a 167 percent increase in bankruptcy filings.

According to the Administrative

Office of the U.S. Courts, more than

970,000 individuals and businesses filed

for bankruptcy in the year ended

June 30, 1992. This was an increase of More than 970,000

10.5 percent over the previous year. individuals and

Business bankruptcies -corporations, businesses filed for

partnerships, farmers and sole propri- bankruptcy in the year

etorships - account for about 8 per- ended June 30.

cent of all 1992 filings. The rest were

consumer cases, and 35 percent of

these were joint filings of a husband

and wife.

In many bankruptcy cases Federal

taxes are a maj. or debt. Since 1986,

the number ofbankruptcy cases about

which the IRS has been notified has

doubled. Even though the total tax

assessed against bankrupt taxpayers in

1992 was $7.2 billion, collections against

these accounts were $526 million. In

fact, since 1986, collections from

bankrupt taxpayers have increased .16-5

percent, while the number of cases

went up 100 percent.

Reducing the

Burden on Taxpayers

The second major goal of the Internal

Revenue Service is to reduce the burden of the tax system on the taxpayer. Our second goal

Reducing the burden of the system is a is to reduce the burden

natural corollary to our efforts to of the tax system on

improve voluntary compliance. A iess the taxpayer.

burdensome system encourages comphance rather than impedes it.

During 1992 we began several operational initiatives designed to reduce

the burden of the tax system. We also

made progress in adopting new technologies designed to reduce the burden.

13
Our operational

initiatives will reduce

the time and expense

of complying with the

law by more than 300

million houm

Many changes we made during the year

contributed to our ability to provide

one-stop service to taxpayers. One-stop

service is what people have come to

expect from many businesses in the private sector. Electronic filing continued

to grow both in terms of the number of

returns filed and the number of options

for filing electronically. We also made

progress in developing our programs for

making the most ofthe human resources

of the agency in delivering tax administration ~ith iess burden on the taxpayer

Operational Initiatives

The first technique we are using to

reduce taxpayer burden is to improve

our own procedures. Our best estimate

is that our operational initiatives will

reduce the time and expense oftaxpayers, tax professionals and others in

complying with the law by more than

300 million hours. The number ofhours

spent, or even a dollar value assigned

to those hours, does not adequate' -ly

express the benefits ofeliminating frustration and wasted energy.

Federal Tax Deposit Rules

One operational initiative was the new

Federal Tax Deposit rules published in

May of 1992. The new regulations simplify the rules employers must follow to

make deposits oftaxes withheld from

employee wages. The system had grown

so complex that the result was an

error-prone process where compliance

was difficult to achieve for both sides.

Under old rules, the deposit requirements could change from month to

month depending on the amount of

taxes accumulated. Many employers

deposited about twice a week on days

set up dividing each month into eight

parts. Eighths of a month are confusing

increments that are not standard for

anyone. Under the new rules, IRS A411

no* employers at the end of each year

what their deposit deadlines will be for

the upcoming year. This schedule will

not change unless there is a significant

change in the company. Five million

employers, primarily small businesses,

now will make deposits one time a

month. Another 1.1 million employers

will make deposits on a semiweekly

schedule. The new regulations -

proposed, open for public comments

and published as regulations on

September 22, 1992 - are effective

January 1, 1993, with a one-year transition period.

Improved Tax Forms

We also improved several tax forms to

reduce their burden on taxpayers:

N a new Schedule C-EZ for small business taxpayers. About 3 million taxpayers can use this new form. Outside of

spaces for identity information such as

name and address, the new form has

only three lines. Schedule C-EZ WiBlIbe

used in filing 1992 tax returns.

M Form 2555-EZ for claiming the

foreign earned income exclusion. This

form will reduce burden and complexity

for taxpayers with relatively simple situations who claim this exclusion.

0 expanded Tax Tables for Form 1040.

The new tables will allow taxpayers with

taxable income up to $100,000 to use

tables rather than compute their tax

using the formula. Incorrectly computing their tax is a common error taxpayers

make in preparing their returns.

Enforcement Programs

Even enforcement programs can be

improved to reduce the burden on the

taxpayer. For example, NN~e made changes

in the Coordinated Examination

Program (CEP). In CEP we examine the

tax returns ofthe 1,650 largest corporate

taxpayers in the country. The program

consistently contjibutes the largest and

New regulations

simplify the rules

employers must follow

to make deposits of

taxes withheld from

employee wages.

14
We can reduce the

burden of the tax

system by providing

publications that

xplain the system

learly.

most significant portion of all the

Examination results in ternis of additional tax recommended.

Asa result of quality improvement

efforts which began in 1990, CEP has

substantially improved the number of

agreed cases and agreed dollar deficiencies. The objective was to resolve more

of these audit cases at the examination

level by working closely with both

internal and external CEP customers.

The program has produced some key

results: s Cases agreed in whole or in part at

the examination level increased from

about 29 percent in 1991 to more than

58 percent in 1992. 0 The more than 580 CEP examinations

closed in 1992 resulted in more than

$15.6 billion in proposed deficiencies. M Agreed CEP deficiencies in 1992

amounted to $2.9 billion, with deficiency, and - interest t -st payments totaling more . 0

than $4.3 billion. Agreed deficiencies

increased from 5.1 percent ofproposed

deficiencies in 1990 to 18 percent in

1992.

Resolving issues more quickly results in

savings for the taxpayer and the govemment. Since CEP taxpayers are under

audit almost continually, these taxpayers

asked the IRS to institute provisions

for applying the findings of one year's

audit ofa business to substantially similar situations in subsequent years, up

through the present. During 1992, the

IRS began using sucha technique. In

this procedure, the IRS audits an issue

through to the current filed year and

enters intoa closing agreement to

resolve the issue. For example, if an

issue was present in the 1985 year being

examined, and the 1987 through 1990

years were not under examination, the

taxpayer could request that the issue be

examined through 1990. In some cases

agreements can be reached involving

prior years as well.

Improved Publications

Another way to reduce the burden of

the tax system is to provide publications

that explain the system clearly. Based on

our conviction that infonned taxpayers

can better meet their obligations witha

minimum ofburden,we revised our

publication Understanding the

Collection Process. Several professional

tax practitioner organizations helped

in this effort. These groups include the

Arnerican Institute of Certified Public

Accountants, the American Bar Association and the National Association of

Enrolled Agents. This publication covers the most commonly asked questions

about IRS procedures for collecting

delinquent taxes and taxpayer rights and

responsibilities. We now mail this publication with the first bill. The publication

covers installment payment arrangements, appeal rights and enforced collection actions. The revision is the result

of surveys in which taxpayers said they

needed more understandable information about what happens when they owe

Federal taxes. We also issueda Spanish

language version of this publication.

During 1992, we developeda new

publication to help businesses deal with

the complexity of international tax

issues. This guide

-Publication 953,

International Tax Informationjor

Business-will be available early in

1993. This is the first such publication

for international taxpayers.

Unnecessary Filing

One obvious example of unnecessary

burden is the taxpayer who files

a

return without having to. During 1992

we concludeda test in Pennsylvania in

which we identified 11,000 taxpayers

who had filed returns two years in

a row,

when there was no need because they

had no filing requirement. Almost half

the returns were filed by elderly people,

15
some of whom had paid to have the

returns prepared. We sent letters to

those we felt might not need to file,

explaining the filing requirements. After

that, 72 percent did not file returns.

The program will be expanded nationwide in 1993. It will include about 1.5

million taxpayers who appear not to

meet filing requirements but who have

filed in 1990 and 1991.

Problem Resolution Program

Taxpayers needa way to get their problems solved when the normal channels

do not seem to be producing results.

The Problem Resolution Program

(PRP), under the direction ofthe Taxpayer Ombudsman, fills this need by

cutting through red tape and helping to

resolve what often appear to taxpayers

as insurmountable tax problems. In

1992 PRP successfully handled ah-nost

428,000 such problems for taxpayers.

Among the cases handled by the

PRP were more than 31,000 requests

for relief of hardship under the

Application for Taxpayer Assistance

Order (ATAO) program. This program

provides fora temporary suspension

of IRS enforcement actions while the

Problem Resolution Officer (PRO)

reviews the taxpayer's case to determine

whethera significant hardship exists

and whether alternatives can be found

both to relieve the hardship and resolve

the tax obligation at hand.

In addition to giving assistance to

individual taxpayers, the Taxpayer

Ombudsman and local PROs act within

the IRS as advocates for all taxpayers.

In this capacity they identify and help

alter or eliminate procedures or systems

that create needless taxpayer burdens.

Technology

We can make breakthrough gains in

reducing the burden of the tax system

througli application of technology. New

computer systems can give front-line

employees the information they need to

do their jobs.

Modern computer technology has an

important role to play in helping us

meet our goals. For example, electronic

filing allows faster and more accurate

filing than is possible on paper. The

error rate for electronic returns is about 2 percent, compared to an error rate of

just over 15 percent for paper returns.

The potential for significant burden

reduction lies in the implementation of

Tax Systems Modernization (TSM). We

completed major procurements this

year, including an important contract

with AT&T for computer equipment to

support several TSM initiatives. The

contract, called the Treasury Multi-User

Acquisition Contract (TMAC), has an

estimated systems life value of $1.4

billion. It will permit IRS to acquire

more than 3,000 mini-computers and

50,000 workstations. The systems will

gi,,7e fir"olitt-Iffine employees improved

access to taxpayer data and greater

capability to handle taxpayers' questions

accurately and quickly. The significant

aspect ofthe TMAC contact award was

that the Treasury Department asked for

proposals based on getting equipment,

integrated software and vendor support

that would give the best value to the

government, not merely on getting the

cheapest price. An in-depth analysis

showed that the AT&T proposal would

provide $788 million more value in IRS

workforce productivity and direct taxpayer benefits than the other proposals.

Losing vendors twice protested the

contract award (in July 1991 and March

1992). The General Services Board of

Contract Appeals upheld the award ina

June 1992 ruling.

.

This year we also awarded

a contract

for integration support to TRW, Inc.

This contract provides for services to

integrate large-scale automated systems -including electronic filing, converting data received on paper to electronic

16
format through imaging, organizing tax

information into integrated data bases,

and making tax information readily

available through computer terminals

-to make certain TSM delivers the

expected benefits and efficiencies. TSM

includes many data processing systems

scheduled for implementation over the

next ten years. Part of the contract will

be to review and refine the steps we

must take to ensure continuity of tax

processing --- new s-st-ms ren] ce the

old.

One-Stop Service

One way technologyAA help reduce

the burden of the tax system is through

one-stop service. Improvements in

technology make it possible for Taxpayer Services personnel to have access

to more pertinent information about

the taxpayer's account and allows

greater authority to be vested with

fron't-line personnel.

The go~l of one-stop service is to

maximize the number of taxpayers who

can conclude their IRS business with

only one call or visit. Right now the

main focus of one-stop service initiatives

is in Taxpayer Services, but the principles apply throughout the IRS. This

year we installed more than 800 new

computer terminals in our Taxpayer

Services call sites, increasing our ability

One-stop service will to respond to account questions. Also,

allow most taxpayers to new information was on those termiconclude their IRS nals, thanks to the Corporate Files On

business with only one Line (CFOL) program that made mascall or visiL ter file account data accessible on-line.

As a result we closed 34.5 percent niore

account calls (1.6 million calls) on-line

than in 1991. CFOL is gradually taking

more types ofdata from the master

file accounts and making infon-nation

accessible to IRS employees.

In 1991 we brought the Returns

Transaction Data System (RTVUE) online. This system allows employees to

provide taxpayers with specific information about math error and other notices

we issue automatically during tax return

processing. For the first time, an IRS

employee can retrieve this tax return

and transaction data on-line, rather than

requesting the return from a service

center. RTVUE should eliminate

pulling 1. 1 million returns a year, at a

savings of $1.2 million.

TSM implementation is already paying benefits in improving quality and

meeting taxpayer needs. Our Taxpayer

Service representatives are now able

to provide substantially better, quicker

service to more customers than ever

before through "on-line" accounts service. Individuals with questions about

their tax accounts, refunds, or balances

can now, in most cases, be served

immediately over the telephone without

having to write to a service center for

follow-up action. For example, on-line

customer accounts service was provided

to 6.2 million taxpayers in 1992, compared to 4.6 million in 1991, a 35 percent increase. Because of a successful

test at the Memphis Service Center, we

can now provide taxpayers with a transcript of their account within 24 to 48

hours. In the past we took 6 to 8 weeks

to produce a photocopy of the return.

As a part ofimplementing this improvement nationwide, we are coordinating

with other government agencies

Departments of Education and

Housing and Urban Developmentthat routinely require a copy of a tax

return for student loan or housing grant

applications to advise them that transcripts provide the same information.

Electronic Filing

Another major way to reduce the burden of the tax system is to increase the

number of returns filed electronicaQy.

Electronic filing has the power to cause

major changes in our tax system and

in the way we do business. Electronic

17
Number of Electronic Returns,

104OPC Returns and TeleFile Returns

ever recording them again. The next

step is to couple this electronic information with the innovative information

processing technology available today.

In this manner, we can make correct

and relevant account information available to any IRS employee contacted by

the taxpayer. One-stop resolution of

most taxpayer problems will be a reality,

not just a pleasant dream.

We also are experimenting in three

southern States in Southeast Region, in

cooperation with the Bureau of

Financial Management Services and the

Federal Reserve Bank in Atlanta, with

a program called TAXLINK, designed

to take the paper out of the Federal Tax

Deposit system. TAXLINK, a test pilot

program of electronic filing of Federal

Tax Deposits, allows employers to make

payroll tax deposits without leaving

their offices. TAXLINK has the potential ofeliminating 80 million paper

coupons each year. It also will eliminate

the accompanying problems o"incorn

rect addresses and incorrect tax and tax

period designations.

This initiative is a promising way of

reducing the burden on business taxpayers. Beyond convenience, beyond

the elimination of errors, this system

eventually will allow the IRS to work

more closely with businesses, using

on-line infon-nation to help them make

timely and accurate deposits.

Another way in which the electronic

world is gaining influence in tax administration is through joint FedState

electronic filing. This prograrn allows

taxpayers to transmit tax return data to

the Federal and State taxing authorities

simultaneously. The program is just getting started, but it is growing. In 1993

the number of States

'

in the program

will more than double, to fifteen. So

far, South Carolina is the only State to

offer joint FedState electronic filing

statewide, generating more than

150,000 electronic returns last year.

Other States offer FedState electronic

millions of returns

12

10

Cm Electronic Returns ~ M 104OPC ~M TeleFile

1986 1987 1988 1989 1990 1991 1992

8

6

filing wiH not be the only or even the

primary source ofchange in the IRS in

the years ahead. It will, however, play

a critical role in shaping the future

Ilesi-offavadminiOr .5- - -- i-st-ation.

Electronic filing started in 1986,

when 5 participants filed nearly 25,000

electronic returns through our

Cincinnati Service Center. Electronic

filing went national in 1990, with more

than 2 1,000 participants and more than

4 million returns. In 1992 we had more

than 52,000 participants and nearly 11

million returns. And the growth is continuing. We expect to have 14 million

electronic returns in 1993. As we

approach the 21st Century, electronic

filing wiU spread to more types of taxEllectronic, filing will payers and more types of returns.

spread to more types But electronic filing is only one part

of taxpayers and more of the overall electronic picture. Once

types of returns. we capture data electronically, we begin

to see major benefits. Electronic data

are not subject to further error. We

record them once, check them for accuracy, and then have them available as

taxpayer account information without

The efficiencies

gained by joint

FedState electronic

filing are so great that

the program should

spread rapidly.

18
filing only to selected locations or

groups of employees. The efficiencies

gained by this cooperative venture and

the TAXLINK experiment are so great

that both programs should spread

rapidly.

Technology will also make it easier

for taxpayers to resolve tax collection

issues. Collection tested a voice-activated, computerized telephone service in

California to allow taxpayers to arrange

payments by entering information

over a push-button telephone. The

test involved some 3,000 delinquent

accounts. As a part ofthe billing process, we selected accounts to receive

information about the toll-free number

for installment payment infon-nation.

The taxpayer uses the buttons on the

telephone to enter certain financial

information and proposes a payment

schedule. We programmed the computer to approve the offer if the proposed

amount ofthe payment meets predetermined standards. Results, while

preliminary, are positive. The average

amount owed by those who used the

system was almost $2,400 and the average agreed payment was around $150

per month.

In another compliance program, we

are studying the feasibility of establishing a nationwide expert system to identify potential audit issues in tax returns.

The Automated Issue Identification

System (AIIS) would provide more

equitable treatment of returns. It would

save taxpayers the inconvenience of

unnecessary contacts or audits. It would

meet or exceed the accuracy and costeffectiveness of existing manual

processes. In 1992 we used a prototype

version of MIS to scan more than

20,000 tax returns at two service centers. Compared to returns processed

manually, AIIS produced higher yields,

greater equity, and lower no-change

rates.

Managing Human Resources

The magnitude of the task ofmodernizing the IRS information systems has

led us to seek advice from many

sources. The final report of the National

Research Council of the National

Academy of Sciences panel affin-ned

the direction in ~;vhicb we are moving.

The report also gave specific recommendations for improvement. First

was to develop a plan for the human

resource issues that arise from systems

modernization.

We developed this comprehensive

plan during 1992 to guide us in managing our human resources to meet the

challenges posed by widespread chap e We need empowered

within the organization. We designed and involved employees

the Plan for Human Resources to solve problems and

Initiatives (PHRI) to allow the IRS to improve our processes

develop the kind of empowered and and products.

involved employees we will need to

solve problems, improve processes and

products, and enable the Service to

meet -its objectives. PHRI includes 13

objectives to be reached by 1996:

s to develop a unified approach for the

work analyses and design methods to

be used in carrying out the Tax Systems

Modernization and Core Business

Systems approaches.

m to define the knowledge, skills and

abilities the IRS wants candidates for

future management positions to possess.

m to develop multi-functional position

descriptions in support ofthe crossfunctional aspects of the IRS vision.

m to develop techniques to improve

retention, productivity and customer

service.

s to develop human resource policies

and systems to support the Service's

need for bilingual employees.

19
Our third goal is to

improve the quality of

products and services,

Increase taxpayers'

satisfaction in dealing

with the IRS and

reduce the cost to both

the government and

the public.

M to develop award systems to provide

immediate recognition for employees

who contribute to customer service.

m to increase the use ofworkplace and

work schedule flexibilities.

m to develop performance measurement systems that are consistent with

Total Quality Organization principles.

m to identify generic workplace skills

necessary to enable a diverse workforce

to meet the challenges ofkey business

objectives and strategies.

m to establish a mechanism for career

development opportunities and training

for employees who are redeployed.

m to establish an integrated curriculum

approach for delivering skill courses to

all employees.

M to monitor and encourage efforts to

improve all activities within the collective bargaining relationship with the

National 'Lledmuvy E'Mpl1o-_S TTn' I- Union.

Improving Quality-Driven

Productivity and

Customer Satisfaction

The third goal ofthe Internal Revenue

Service is to improve the quality of

products and services, increase taxpayers' satisfaction in dealingvvith the IRS

and reduce the cost to both the govemment and the public. These principles

must be integral parts of all IRS programs. Our activities in quality initiatives, our enhanced training program,

and our strategies to emphasize diversity

issues keep us headed toward this goal.

Quality

Delivering quality service is the ftrst

step toward customer satisfaction. The

President's Award for Quality presented

to the Ogden Service Center is but

one example of the IRS commitment to

quality. In 1992 the IRS also issued a

plan for improving customer satisfaction

and organizational perfon-nance. This

plan included provisions for continuing

the long-standing partnership between

the Service and the National Treasury

Employees Union in the quality arena.

When IRS and NTEU began the

joint Quality Improvement Process

(JQIP) five years ago, a unique govemment approach to quality began. The

experience we have gained has greatly The Ills-NTEU Joint

enhanced our appreciation ofhow a Quality Improvement

commitment to quality can change an Process is a unique

organization. government approach

We have formed nearly 2,000 Quality to quality.

Improvement Process Teams during the

past five years, representing every one

of L

I me Sel-Vice's 4ffinnctions and districts.

These teams have completed more than

1,000 projects, resulting in benefits for

the Service and taxpayers alike.

The Austin District's Collection/

Examination Referral System Team is a

good example of our quality process in

action. We incorporated quality

improvement recommendations from

the Austin District into the national

nonfiler strategy. We expect this strategy to generate $3 billion to $4 billion in

additional revenue over a period of

three years. Results like this, results

worth millions of dollars saved and

tremendous amounts ofburden

reduced, are showing up everywhere.

Our quality efforts are now expanding beyond quality improvement teams V

into how we anllYze, manage, measure,

and improve our work systems. This

Core Business Systems approach puts

continued emphasis on satisfying our

external customer the taxpayer. We will

20
do this by analyzing and improving

broad cross-functional work systems

that deliver net customer value. Our

goal is to be a Total Quality

Organization.

Training

An excellent training program is an

important prerequisite to quality. Ifwe

are to make the extraordinary progress

required for success in the 21st

%~en-tury, we must provide people vridb

the skills, knowledge, and equipment

necessary to do theirjob. In short,

we must have a training program that

prepares our employees to deliver

the quality service our customers want

and deserve.

In 1992 we began work on a new

concept in training for the agency-a

university environment. We hope to

have this IRS University concept fully

implemented by 1996.

We base IRS University on the realization that our modernized information

systems will be less valuable, our new

compliance philosophy less effective,

and our attempt to improve customer

satisfaction less than My successful

unless our managers and employees

have the skills they need to make our

new tax administration system work.

We will need a cadre of managers and

We must provide our employees with superior computer

employees with the skills, detailed knowledge oftax law, and

skift knowledge, and Outstanding interpersonal skills ifwe are

equipment necessary to provide our customers with the comto do their job. prehensive, one-stop service we have

promised.

Ethics

An important aspect of quality service is

that we base it on a high standard of

ethics. Taxpayers demand to know that

they can trust the IRS employees who

are handling their tax matters.

The IRS has developed a strict code

of ethics--one of the toughest sets

of rules in government. But despite the

Agency's long-standing efforts, IRS

management knows that ethical standards go beyond following rules. Taxpayers demand I

We base our ethics program on the know that they can

belief that ethics is a way ofviewing trust the IRS employ

how the IRS does business, both inter- who are handling IN

nally and externally. The most basic tax matters.

demonstration ofour commitment to

ethics is the inclusion ofethics as one of

the five major strategies in the IRS

business plan.

T-1he Ethics Action Plan establishes a

comprehensive framework for addressing ethics, integrity, and conduct

awareness on an ongoing basis. Issues

addressed in this plan include reporting

of wrongdoing and preventing reprisals,

consistency of disciplinary actions for all

employees for similar misconduct, and

communicating expectations of ethical

behavior to all employees.

The Inspection Service made presentations to more than 900 groups in

1992 to heighten awareness of integrity

and fraud issues. These sessions also

provide a deterrent against fraud and

abuse in IRS programs and operations.

In 1992 we provided one-day ethics

awareness workshops for 13,000 managers. This training included discussions

of ethical issues and the dilemmas

managers face daily.

We scheduled ethics training starting

for an additional 106,000 employees for

the early part of FY 93. The centerpiece

ofthis training will be a new Ethics

Resource Guide. This guide will set

forth our expectations, requirements,

and resources available for advice in the

ethics field. Phase one of the employee

training will involve face-to-face meetings between managers and employees

to discuss local office issues and concerns and shared ethical values. Phase

two will include classroom training. The
classroom phase includes job-specific

scenarios ofethical issues in real-life job

situations and feedback from employees

to managers about work place ethical

issues.

We have also started two new

periodicals. Practicing Ethics is a new

periodical for all employees, published

twice a year. The second, The IRS

Manager, is directed at managers. We

devoted most of the first three issues to

ethics and integrity

We conducted a survey of all IRS

employees to determine areas relating

to attitudes about ethics within the

agency. This survey, combined with

results of a similar survey of managers

done in 1991, establishes a baseline

from which to gauge our progress. We

have already taken some steps to

improve the areas identified in the

employee survey.

We established a set ofguidelines for

employee disciplinary actions and

adverse actions to ensure that sanctions

are consistent and e

'

ven-handed, regardless of rank or position. This is a key

issue in establishing credibility for our

ethics program.

We have widely published our

Inspection Hotline Number (1-800-

366-4484) to encourage employees to

report wrongdoing - and the number

ofhotline calls is increasing as a result.

Customer service and We began a major effort to review

quality depend on our the way we measure our work so that

having a work force as our performance evaluations and meadiverse as the public surement systems do not encourage a

we serve. "make-the-numbers" mindset. As an

example, productivity statistics for telephone assistance work now are determined by measuring only the number

of correct responses made rather than

the total number of calls answered. This

ensures that quality is the top priority.

Diversity

The IRS' business plan recognizes that

customer service and quality depend on

our ability to attract and retain a work

force as diverse as the public we serve.

And for that reason we have designated

Diversity as one of the five strategies by

which we intend to accomplish our

objectives.

While the Diversity Strategy encompasses the legal obligations of equal

employment opportunity (EEO), the

Strategy has broader ramifications.

EEO has historically focused on quantitative change. EEO continues to be

important, but alone it cannot produce

the organizational culture change that

our Diversity Strategy envisions. Our

Diversity Strategy is driven by the need

to maximize the talent ofall our human

resources.

Diversity means recognizing, accepting, respecting, and valuing the differences among us. Those differences

may arise because of age, gender, race,

physical ability, religion, or cultural

background.

The IRS, like our society, includes

people of vastly different backgrounds

and viewpoints. Our different backgrounds and experiences make us

strong and help us serve the American

people better. The IRS can accomplish

its objectives only if our workforce

understands and relates effectively to all

the people we serve, not to a mythical

"typical taxpayer."

On the EEO front, the IRS has

made progress that should be recognized. We have increased representation of minorities in our workforce, and

in some geographic areas we have done

well. But more remains to be done -

not only in recruiting but also in training, mentoring and providing opportunities for advancement. We have forged

relationships for recruiting, but we have

-also focused on improving retention,

Diversity, means

recognWng, accepting,

respecting, and

valuing the differences

among UL

22
We have begun to

carry out our changes

through a responsible

and thoughtful process.

training, and advancement opportunities.

And most importantly, we are beginning

to focus on the culture change that values and uses the skills ofall employees.

The IRS of the Future

The accomplishments of 1992 are just

a part of our effort to reform our tax

system, restructure our infon-nation systems, and reinvigorate our work force.

We will not reach our goal in a single

year or even two or three years. Instead,

we have begun to carry out our changes

through a responsible and thoughtful

process that will last for 8 to 10 years.

In that short period, our vision for

the IRS is to achieve

m a voluntary compliance rate well in

excess of 90 percent;

n reliance oDthe telephone, rather

than correspondence as the preferred

method ofcustomer service;

m one-stop service for all taxpayers;

n 100 million electronic returns and a

dramatically reduced reliance on paper

submissions of any kind;

m single wage reporting;

m all tax. payments received by

electronic funds transfer;

0 instant access to all relevant

information;

M an organization-wide passion for

customer service;

m geographic flexibility in location

of employees and operations through

electronic linkages;

m cross-functional and less hierarchical

organizational structures; and

fill a highly sldfled and empowered

workforce with superior computer

skills, detailed knowledge of tax law,

and outstanding interpersonal skills.

The IRS of the future is an exciting one.

Getting there will entail hard work, an

ability to manage ourselves through

some ambiguities and an absolute commitment to continuous improvement.

By working closely with the American

people and with organizations representing,various segments of the tax

industry, we can succeed in this plan

and make our ambitious vision a reality.

2
Statistical Tables

Note: Statistical data used in the text and tables ofthis volume

are on a fiscal year basis, unless othervAse noted: For example, data headed "1992" pertain to the fiscal year ended

September 30, 1992.

Footnotes for all tables are combined at the end ofthe

Statistical Tables section.

Table 1.

Table 2.

Table 3.

Table 4.

Table 5.

Table 6.

.Table 7.

'Table 8.

Table 9.

Table 10.

Table 11.

Table 12.

Table 13.

Table 14.

Table 15.

Table 16.

Summary: Internal Revenue Collections

Summary: Number of Returns by

Principal Type of Return

Internal Revenue Collections by

Region and State

Internal Revenue Collections by Principal Sources

Amount of Internal Revenue Refunds

Including Interest

Number of Internal Revenue Refunds Issued

Number of Returns Filed

Number of-Returns Filed Electronically

Selected Information from Returns Filed

Taxpayer Assistance and Education Programs

Returns Filed, Examination Coverage (1992)

Returns Filed, Examination Coverage (1991)

Number of Returns Examined (1992)

Additional Tax and Penalties

Recommended After Examination (1992)

Civil Penalties Assessed and Abated

Examined Returns and Service Center

Correspondence Contacts Involving

Revenue Base Protection

Table 17. Examined Returns and Service Center

Correspondence Resulting in Refunds

Table 18. Information Reporting Program

Table 19. Delinquent Collection Activity

Table 20. Criminal Investigation Program

Table 21. Internal Audit

'-lablle In,- I Lernal Security Activities

Employee / Non-Employee Violations

Table 23. Employee Plans and Exempt Organizations

Tax Rulings and Technical Advice (Closings)

Table 24. Determination Letters Issued on

Employee Benefit Plans

Table 25. Exempt Organizations and Other Entities

Listed on Exempt Organizations and

Business Master File

Table 26. Exempt Organizations Applications (Disposals)

Table 27. Internal Revenue Collections, Costs,

Employees and U.S. Population

Table 28. Internal Revenue Service Costs by Activity

Table 29. Internal Revenue Service Costs by Office'

Table 30. Internal Revenue Service Personnel Summary

Table 31. Chief Counsel Workload by Function

Table 32. Chief Counsel Workload by Region/Office

Table 33. Comparison for Equal Employment

Opportunity Statistics

24
Table 1 - Summary: Internal Revenue Collections

(In thousands of dollars. For details see Statistical Table 3.)

Gross collections .............. ...........

N.e.t.col.lections ............. .............. ....................................................................

Percent Percent

of 1992 1992 of 1992

Source collections 1991 1992 RefundS3 Amount collection~

Grand total 100.0% 1,086,851,401 1,120,799,558 109,900,264 1,010,899,294 100.0%

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

income taxes, total 60.3% 660,475,445 675,673,952 ........................................................................

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

.......

Corporation 10.5% 113,598,569 117,950,796 17,612,430 100,338,366 .................... 9.9% ................................................................... ......

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

Regular 10.5% 113,310,389 117,571,285 ................................................ ......................................................................................................... .........................................................................

Exempt organizations business income tax 288,179 379,5

.

1

.

1.................................................................................................

I

.

ndividu

.

a

.

1.

.

t

.

otal

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

49. 8% 546 876,8 76 557.723J56 89,531,0754 468,192,081 46.3%

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

Withheld by employers'.2 36.4% 404,183,687 408,380,909 .......................................................................... .......................................................................................................................... ..............................

Other2 13.3% 142,693,189 149,342,247 ................................................

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

Employment taxes, total 35.7% 384,451,220 4

.

00

.

.0

.

80

.

.9

.

04

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

I

.........

9

.

64,3

.

5

.

6

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

3.99.1 .

1

.

6,54

.

8

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

39..5.%.

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

Old-age survivors disability and

hospital insurance, total 34.8% 374,743,589 389,967;051 804.650 389,162,401

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

38

.

.5

.

%

.

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

Federal insurance contributions 32.6% 349,287,205 365,546.155 .......................

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

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

Self-employment insurance contributions 2.2% 25,456,384 24,420,896

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

U

.

n

.

emp

.

]a

.

y

.

men

.

t

.

i

.

nsu

.

r

.

a

.

nc

.

e

.

*

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

....

0.

.

5%

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

5 4 74,0 0 0 5,754,998 148,069 5,606,929 0.6%

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

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

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

Railroad retirement 0.4% 4,233,631 4,358,855 11,638 4,347,217 0.4%

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

Estate and gift taxes, total 1.0% 11,473,141 11,479,116 3

.

35,6

.

78

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

1

.

1,14

.

3,43

.

9

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

1

.

.1

.

%

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

Estate 0.9% 10,237,247 10,411,450

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

Gift 0.1% 1,235,894 1,067,666 .......................

.................................................... _ ......................................................................................................................................................

Excise taxes, total 3.0% 30,451,596 33,565,587 1,456,726 32,108,861 3.2%

Table 2 - Summary: Number of Returns by Principal Type of Return

(Figures in thousands. For details see Statistical Table 7.)

Type of return 1991 1992

Grand total 203,713 204,075

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

Income taxes, total 161,845 161,895

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

Individual 114,058 114,999

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

1040 74,645 77,113

........................................ ~ I ........................................................................

1040A 21,758 20,391

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

1040EZ 17,352 17,190

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

1040 other' 303 . 304

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

Individual estimated tax 38,386 37,321

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

Fiduciary 2,765 2,885

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

Fiduciary estimated tax 612 614

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

Partnership 1,671 1,604

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

Corporation 4,354 4,472

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

Estate tax 64 67

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

130tax 155 168

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

Employment taxes 28,516 28,664

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

Exempt organizations 513 531

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

Employee plans 1,117 1,160

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

Excise taxes 809 811

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

Supplemental documents2 10,694 10,780

25
Table 3 -Intemal Revenue Collections by Region and State

(In thousands of dollars)

Internal Revenue regions and

districts, slates and other areas.

States represented by single

districts indicated in parentheses;

totals for other states shown

at bottom of table)

Individual Income and Employment Taxes

.................. ........................... ..................... -1..........

Total internal Corporation Income tax Income tax Railroad Unemployment

revenue income not withheld and withheld and retirement irrsuranceO

collections (1) taX2.3 (2) Total (3) SECA4-- (4) FICA4,7 (5) (6) (7)

Estate Gift Excise

taxg (8) ja&9 (9) tax (10)

11 1

United States, total 1,120,799,558 117,950,796 957,804,052 173,763,143 773,927,064 4,35111,855 5,754,998 10,411,450 Q11,1157,666) 33,565,587

............... ......... I ................................. I ................................. I ......... ...... I—— ......................... ......................................................... _. ~. L;~ ......... ..........

North Atlantic Region 181,618,736 22,119,985 155,318,285 26,202,940 128,145,987 250,525 718,833 1,935,433 208,057 2,036,970

Albany (See (d) below) 11,495,866 1,239,826 10,183,025 1,060,696 9,080,412 13,110 28,807 41,087 277 31,651

Augusta (Maine) 3.42B,328 258,941 3,084,598 610,556 2,448,397 4,130 21,515 25,778 2,434 56,577

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

Boston (Massachusetts) 31,326,963 3,191,676 27,552,696 4,822,164 22,565.330 17,630 147,572 315,462 26,974 240,154

Brooklyn (See (d) below) 20,170,777 966,694 18,794,374 4,717,889 13,875,807 1 D4,605 96,073 176,403 15,205 218,100

Buffalo (See (d) below) 15,783,049 1,422,102 14,072,065 2,036,478 11,953,074 4,518 77,996 112,918 8,237 167,728

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

Burlington (Vermont) 1,665,034 121,348 1,514,084 331,134 1,168,835 4,910 9,206 15,561 238 13,802

Hartford (Connecticut) 22,873,200 2,664,759 19,674,284 3,332,357 16,250,133 1,283 90,511 238,132 18,335 277,690

Manhattan (See (d) below) 66,848,362 11,628,330 53,178,133 7,904,523 44,969,350 100,235 204,025 931,489 134,564 975~846

Portsmouth (New Hampshire) 3,985,674 234,555 3,688,484 764,883 2,900,808 103 22,690 39,029 818 22,789

Providence (Rhode Island) 4,041,484 391,753 3,576,540 622.262 2,933,840 0 20,438 39,576 975 32,640

Mid-Atlantic Region 167,434,077 17,486,439 143,873,647 22,327,190 119,480,940 1,340,678 724,940 1,347,269 125,195 4,601,527

Baltimore (Maryland & DX.) 32,919,220 2,348,916 29,835,673 3,973,904 25,393,556 353,677 114,536 246,087 16,052 472,492

.... .......................................................... ...... ................ ............ 1-11 ............................. .......................... I ....................... : .......................... ..............

Newark (New Jersey) 50,750,259 5,755,998 42,752,827 61288,241 36,235,500 15,813 213,274 356,138 49,620 1,835,676

Philadelphia (See (t) below) 36,295,467 3,504,811 31,405,212 5,229,559 25,473,946 529,436 172,269 233,616 32,124 1,119,705

Pittsburgh (See (f) below) 17,721,898 2,004,725 15,256,782 2,374,523 12,768,904 29,216 84,139 183,500 13,165 263,725

Richmond (Virginia) 23,968,555 2,134,691 20,873,730 3,845,502 16,495,203 412,492 120,533 226,268 10,707 723,168

Wilmington (Delaware) 5,778,667 1,737,298 3,749,423 615,461 3,113,830 44 20,088 101,659 3,526 186,761

Southeast Region 157,050,990 14,584,540 137,435,907 28,700,127 107,214,866 623,225 897,689 1,666,669 210,740 3,153,134

Atlanta (Georgia) 28,179,470 3,924,147 22,687,257 3.577,433 18,948,319 3.896 157,609 168,259 17,845 1,381,963

Birmingham (Alabama) 10,811,445 940,830 9,596,426 1,890,556 7,637.207 2,610 66,053 1.1-1,625 10,574 150,989

............. .......................... I ...... ......... I ........................................ - ~ ................... I ............... .......... .......... ................................. -.. ~ .......................

Columbia (South Carolina) 9,514,769 670,062 8,653,259 1,450,435 7,138,045 857 63,923 66,024 13,066 112,358

Ft. Lauderdale (See (b) below) 21,682,305 1,017,182 19,745,246 7,134,979 12,495,917 329 114,020 586,238 106.354 227,286

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

Greensboro (North Carolina) 21,892,688 2,574,013 18,898,174 3,476,971 15,284,417 1,531 135,254 224,242 18,991 177,267

Jackson (Mississippi) 5,054,897 405,940 4,480,498 977,005 3,457,693 11.174 34,625 41,181 4,416 122,862

Jacksonville (See (b) below) 21,963,144 1,200,947 20,375,630 4,370,741 15,298,929 593,412 112,547 241,301 13,974 131,293

Little Rock (Arkansas) 7,634,304 1,387,869 6,031,126 1,051,946 4,922.172 4,586 52,422 33,879 3,164 178,266

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

Nashville (Tennessee) 17,393,259 1,462,494 15,498,816 2,644,686 12.751,828 2,333 99,969 103.595 15,828 312.527

New Orleans (Louisiana) 12,924,709 1,001,057 11,469,477 2,125,373 9,280,339 2,497 61,268 89,325 6,527 358,323

Central Region 133,039,508 12,699,065 115,601,882 15,856,755 98,T75,475 141,694 817,959 896,509 62,690 3,779,362

Cincinnati (See (e) below) 20,363,035 2,629,916 17,376,275 2,668,479 14,598.121 850 108,825 134,168 11,115 211,561

Cleveland (See (e) below) 29,475,224 2,456,684 24,706,608 3.230,991 21,277,018 58,825 139,774 219,571 15,064 2,077,298

- Detroit(Michigan) 44,918,115 4,166,120 40,123,266 4.588,710 35,095,613 57,078 381,865 265,795 21,136 341,797

Indianapolis (Indiana) 23,874,232 2,056,268 21,249,378 2.983,694 18,141,283 19,223 105,178 162,677 9,365 396,544

Louisville (Kentucky) 10,706,922 1.190,910 8,787,702 1,720,979 7,000,605 5,500 60.618 92,293 5,458 630,559

Parkersburg (West Virginia) 3,701,980 199,166 3,358,652 673,900 2,662,836 218 21,698 22,006 552 121,603

Midwest Region 164,459,405 21,673,410 137,008,926 22,457,097 112,447,910 1,340,814 763,104 1,176,858 105,122 4,495,090

Aberdeen (South Dakota) 1,920.814 102,298 1,751,747 580,697 1,157,131 3.171 10,748 24,774 1,394 40,601

Chicago (See (c) below) 55,754,787 7,697,358 45,458,022 7.551,721 37,393,630 258,183 254,488 436,150 45.131 2,118.127

.... ...... I ................... I ...... ................................... .................................... ............................. ............ r ..........................................................

Des Moines (Iowa) 8,958,794 1,023,384 7,506,072 1,705,737 5,745,265 9,946 45,124 60,872 2,285 366,181

Fargo (North Dakota) 1,666,457 111,476 1,518,471 435.019 1,074,072 861 8,519 5,941 14 30,554

Helena (Montana) 1,905.814 136.646 1,717,487 520,410 1,173,473 12,980 10,625 16,756 868 34,056

Milwaukee (Wisconsin) 22,440,370 2,345,857 19,749,305 2,897,615 16,732,241 9,653 109,795 113,713 15,946 215,550

26
Table 3-Intemal Revenue Collections by Region and State, continued

(In thousands of dollars)

Internal Revenue regions and

districts, states and other areas.

States represented by single

districts indicated in parenthesw,

totals for other states shown

at bottDrn of table. I

Midwest Region, continued

Individual Income and Employment Taxes

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

Total internal Corporation Income tax Income tax Railroad Unemployment

revenue income not withheld and withheld and retirement insurance8 Estate Gift Excise

Collections (1) taX2,3 (2) Total (3) SECA' 1.1 (4) FICA4.7 (5) (6) (7) tax' (8) taxg (9) tax (10)

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

Omaha (Nebraska) 6,870,020 842,814 5,886,567 1,058.965 4,367,724 425,890 33,988 46,115 1,781 92,743

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

St Louis (Missouri) 27,296,697 4,989,669 21,335,112 3,081,476 18,083,273 41,171 129,192 223,048 20,855 728,015

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

St. Paul (Minnesota) 27,673,213 3,350,067 23,506,420 3,019,593 19,804.886 565,744 116,198 124,816 14,278 677,632

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

Springfield (See (c) below) 9,972,439 1,073,842 8,579,722 1,605,864 6,916,215 13,215 44,428 124,673 2,569 191,632

Southwest Region 130,670,808 10,106,349 107,7",635 21,792,111 85,030,160 288,423 633,941 1,087,750 163,025 11,569,049

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

Albuquerque (New Mexico) 3,412,640 162,305 3,130,860 706,331 2,403,927 251 20,351 35,033 2,291 82,151

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

Austin (See (g) below) 15,399,726 887,305 13,792,753 3,074,322 10,652,737 7,822 57,873 141,435 21,256 556,975

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

Cheyenne (Wyoming) 1,389,127 50,354 1,135,277 380,781 748,180 42 6,275 8,641 2,770 192,085

................ ............................... -.11 ......... ...................................................................................................................................................................

Dallas (See (g) below) 30,343,134 2,282,587 25,458,884 5,236,015 20,039,616 3,827 179,426 2788,396 72,656 2,250,611

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

Denver (Colorado) 17,087,868 1,091,815 15,357,513 2,556,469 12,725,733 6,231 69,081 96,017 4,132 538,392

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

Houston (See (g) below) 26,242,250 3,168,728 18,116,127 3.470,361 14,525,148 14,278 106,340 179,087 27.252 4,751,056

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

Oklahoma City (Oklahoma) 12,327,170 774,571 9.007,224 1,712,066 7,241,914 1,586 51,658 97,289 6,595 2,441,491

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

Phoenix (Arizona) 91662,807 407,135 8,908,446 2,055,288 6,791,325 1,289 60,544 119,531 14,641 213,053

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

Salt Lake City (Utah) 5,066,217 538.576 4,338,843 857,050 3,450,116 2,198 29,479 53,100 4,782 130,916

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

Wichita (Kansas) 9,739,870 742,971 8,498,706 1,743,428 6,451,464 250,900 52,915 79,222 6,651 412,319

Western Region 177,046,431 16,593,650 154,324,521 34,708,020 118,382,423 362,606 871,473 2,009,995 190,346 3,927,918

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

Anchorage (Alaska) 21143,128 114,076 1.994,169 475,217 1,507,736 791 10,425 6,477 422 27,985

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

Boise (Idaho) 3,465,080 340,779 3,067,239 626.479 2.417,689 351 22,720 19,302 4,856 32,903

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

Honolulu (Hawaii) 41542,943 412,280 4,003,114 916,227 3,064,282 120 22,485 61,095 2,283 64,171

.......... : .................................................................................................. .....................................................................................................................

Laguna Niguel (See (a) below) 27,671,533 1,870,650 25,299,133 6,385,555 18,746,165 542 166,871 320,128 21,316 160,305

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

Las Vegas (Nevada) 5.029,561 306,381 4,626,420 1,438,931 3,157,279 12 30,198 39;940 7,397 49,423

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

Los Angeles (See (a) below) 39,687,712 4,990,429 32,811,584 6,477,251 26,141,178 58 193,097 542,047 54,988 1,288,663

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

Portland (Oregon) 10,468,856 958,604 9,252,592 2,045,972 7,166,155 1,167 39,298 96,329 14,466 146,866

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

Sacramento (See (a) below) 15~834,020 602,075 14,873,352 4,087,576 10,707,132 2,618 76,026 178,123 6,948 173,523

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

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

San Francisco (See (a) below) 24,882,957 3,557,521 19,451,603 3,366,603 15,651,516 353,348 80,136 350,577 32,125 1,491,131

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

San Jose (See (a) below) 20,813,187 1,448,117 18,855,766 4,364,277 14,379,246 1,638 110,606 253,428 20,355 235,521

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

Seattle (Washington) 22,507,455 11992,737 20,089,548 4,523,931 15,444,045 1,962 119,610 142,552 25,191 257,427

International 5,763,259 1,789,840 4,776,014 1,177,490 3,551,634 4,926 41,964 75,937 2,490 118,978

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

Puerto Rico 2,280,388 45,756 2,173,235 135,513 2,002,115 - 35.607 8,785 644 51,968

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

Other 41482,871 1,744,084 2,602,779 1,041,978 1,549,519 4,926 6,356 67,152 1,846 67,010

Undistrlbuted'O 2,716,344 897,520 1,720,242 531,414 897,669 5,964 285,196 215,029 - (116,447)

Totals for states not shown above

(a) California 128,889,408 12,468,793 111,291,438 24,681,261 85,625,237 358,203 626,737 1,644,302 135,731 3,349,144

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

(b) Florida 43,645,449 2,218,128 40,120,875 11,505,721 27,794,846 593,742 226,567 827,539 120,328 358,578

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

(c) Illinois 65.727,226 8,771,199 54,037,744 9,157,585 44,309,845 271.398 298,916 560,823 47,701 2,309,759

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

(d) New York 114,298,054 15,256,952 96,227,598 15,719,5115 79,878,644 222,468 406,901 1,261,897 158,283 1,393,324

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

(e) Ohio 49,838,259 5,086,600 42,082,883 5,899,470 35,875,139 59,675 248,598 353,739 26,179 2,288,859

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

(1) Pennsylvania 54,017,365 5,509,536 46,661,994 7,604,082 38,242,851 558,652 256,409 417,116 45,289 1,383,430

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

(g) Texas 71,985,109 6,338,621 57,367,765 11,780,699 45,217,501 25,927 343,638 598.918 121,164 7,558,642

27
Table 4 -Internal Revenue Collections by Principal Sources

(In thousands of dollars)

Income and profits taxes

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

Total

I

ntemal Corporation Individual

Revenue income and income Employment Estate and Excise

Fiscal year Collections (1) Total (2) profit taxes (3) taxes (4) taxes (5) gift taxes (6) taxes (7)

1963 105,925,395 75,323,714 22,336,134 52,987,581 15,OD4,486 2,187.457 13,4G9,737

1964 112,260,257 78,891,218 24,300,863 54,590,354 17,002,504 2,416,303 13,950,232

1965 114,434,634 79,792,016 26,131,334 53,660,683 17,104,306 2,745,532 14,792,779

1966 128,879,961 92,131,794 30,834,243 61,297,552 20,256,133 3,093,922 13,398,112

1967 148,374,815 104,288,420 34,917,825 69,370,595 26,958,241 3,014,406 14,113,748

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

1968 153,636,838 108,148,565 29,896,520 78,252,045 28,0115.898 3,081,979 14,320,396

1969 187,919,560 135,778,052 38,337,646 97,440,406 33,068,657 3,530,065 15,542,787

1970 195,722,096 138,688,568 35,036,983 103,651,585 37,449,188 3,680,076 15,904,264

1971 191,647,198 131,072,374 30,319,953 100,752,421 39,918,690 3,794,283 16,871,851

1972 209,855,737 143,8D4,732 34,925,546 108.879,186 43,714,001 5,489,969 16,847,036

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

1973 237,787,204 164,157,315 39,045,309 125,112,006 52,081,709 4,975,862 16,572,318

1974 268,952,254 184,648,094 41,744,444 142,903,650 62.093,632 5,100,675 17,109,853

1975 293,822,726 202,146,097 45,746,660 156,399,437 70,140,809 4,688,079 16,847,741

.916 302,519,792 205,751,753 46,782,956 158,968,797 74,202,853 5,307,466 17,399,118

1976 (TO)' 75,462,780 49,567,484 9,808,905 39,758,579 19,892,041 1,485,247 4,518,008

1977 358,139,417 246,805,067 60,049,804 186,755,263 86,076,316 7,425,325 17,832,707

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

1978 399,776,389 278,438,289 65,380,145 213,058,144 97,291,653 5,381,499 18,664,949

1979 460,412,185 322,993,733 71,447,876 251,545,857 112,849,874 5,519,074 19,049,504

1980 519,375,273 359,927.392 72,379,610 287,547,782 128,330,480 6,498,381 24,619,021

1981 606,799,103 406,583,302 73,733,156 332,850,146 152,885,816 6,910.386 40,419,598

1982 632,240,506 418,599,768 65,990,832 352,608,936 168,717,936 8,143,373 36,779,428

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

1983 627,246,793 411,407,523 61,779,556 349,627,967 173,847,854 6,225,877 35,765,538

1984 680,475,229 437,071,049 74,179,370 362,891,679 199,210,028 6,176,667 38,017,486

I ga5 742,871,541 474,072,327 77,412,769 396,659,558 225,214.568 6,579,703 37,OG4,944

1986 782,251,812 497,406,391 80,441,620 416,964,771 243,978,380 7,194,956 33,672,086

1987 886,290,590 568,311,471 102,858,985 465,452,486 277,000,469 7,667,670 33,310,980

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

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

1988 935,106,594 583,349,120 109,682,554 473,666,566 318,038,990 7,784,445 25,934,040

1989 1,013,322,133 632,746,069 117,014,564 515,731,504 345,625,586 8,973,146 25,977,333

1990 1,056,365,652 650,244,947 110,016,539 540,228,408 367,219,321 11,761,939 27,139,445

1991 1,086,851,401 660,475.445 113,598,569 546,876,876 384,451,220 11,473,141 30,451,596

1992 1,120,799,558 675,673,952 117,950,796 557,723,156 400,080,904 11,479,116 33,565,587

Table 5 -Amount of Internal Revenue Refunds Including Interest

(In thousands of dollars)

Internal revenue regions and districts, states

and other areas. (States represented by single

districts indicated in parentheses; totals Corporation Individual Employment Estate. Gift Excise

for other states shown at bottom of table.) Total (1) 1 ncome2 (2) income3 (3) taxes4 (4) tax (5) tax (6) taxes' (7)

United States, total' 113,108,327 19,688,562 88,623,915 2,397,727 376,81311 23,945 1,997,378

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

Nort"tlafflic Region 18,055,526 5,009,378 12,742,333 220,141 53,579 1,997 28,099

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

Albany (See (d) below) 956,432 181,764 760.268 11,186 2,515 .......

17 .........................68.2

Au

gus

.

t

.

a

.

Me

.

in

.

e)

................................ 1.

~63,4

.

3

.

9

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

7

.

0,48

.

7

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

38

.

8,01

.

4

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

3

.

5

.

I

.

9

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

85

.

1

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

189 379

.... ~si~ ............................................... ................... .......... ............................. .............................................................................................................

B n (Massachusetts) 3,172,787 655,664 2,463,082 40,277 10,494 119 3,150

i..... iy . ....................................... i,6~ . ................................................ ............................................................................................................ I ..........

rook n (See (d) below) 3,444 231,704 2,744,282 37,476 6,186 (101) 3,897

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

Buffalo (See (d) below) 2,135,842 280.062 1,832,971 16,201 2,832 145 3,630

6... : ... ......................................... i~ . ........................................................................................................................................................................

urlington (Vermont) 6,465 174,708 178,510 2,529 506 3 209

... Hai ..................................... I ........

2

.

1

.

54,1

.

94

................ ................................................................................................................. i~...........................

rtford (Connecticut) 498,526 1,616,232 29,548 5,832 1 3,1

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

Manhattan (See (d) below) 4.806,870 2,788,555 1,913,930 69,516 21,856 581

.. ........................................ i5~~

5

.

9

.

8

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

5

.

9,23

.

9 .................... 46.8,63.5 ......... ............5

.

4

.

25

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

972

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

0 3 6

.... .

outh (New Hampshire) .. .... . 2

Providen-G'e-(R6d'e' Islan'd')' ...... ....4`5' 1, *,4-5*6.......... * ............6'8','B6-8... * ............ 3-7'6*,'4'1-0* .... ....4',*4'6'3' ............ 1,533 ...... * ............ 22'9

Mid-Atlantic Region 15,318,420 2,940,595 12,022,949 260,081 59,153 2,761 32,781

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

Baltimore (Maryland & D.C.) 2,866,014 483,844 2,254,567 98,525 20,650 67 8,360

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

Newark (New Jersey) 4,821,058 1,227.624 3,479,245 74,750 22,845 ...

2.,948.......................

1.3..646

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

Philadelphia (See (f) below) 3,084,103 418,244 2,620,854 37,577 3.646 (548) 4,329

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

Pittsburgh (See (f) below) 1,705,381 413,088 1,267,526 18,446, 3,820 108 2.394

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

Richmond (Virginia) 2.517,793 318,081 2,162,493 26,141 ....72.4.15.....................1.1.7.1 ......................

3,54.5.

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

Wilmington (Delaware) 324,071 79,814 238,264 4,641 777 69 507

Southeast Region 17,974,381 1,999,813 15,60,825 224,512 64,320 2,194 39,717

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

orgia) 2,750,744 506,962 2.203,010 32,047 3,702 .......

119

... * .......

4.9D

,

4

............ .......... -- - .............. -*.. .... * .... -.......... ......... * ... -* ... * ........................ ....... irming am (Alabama) 1,408,428 73,184 1,318,350 13,609 1,117 15 2,153 61............................................................................................................................................................................................. ii., .................... 1.6.i ~4

umbia (South Carolina) 1,316,062 186,374 1,105,521 12,092 1,904

........................................................................................................... .............................................. ~4 .........................................................

uderdale (See (b) below) 2,343,331 160,387 2,118,005 36,940 .058 1,162 2,779

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

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

nsboro (North Carolina) 2,572,829 346,566 2,191,217 25,151 6,023 116 3,755

............................................................................................................................................................................................... ii .........................

ackson (Mississippi) 813,087 35,645 767,370 7,551 1,578

28
Table 5 -Amount of Internal Revenue Refunds Including Interest, continued

(in thousands of dollars)

internal revenue regions and districts, states

and other areas. (States represented by single

districts indicated in parentfieses: totals Corporation Individual Employment Estate Gift Excisi

for other states shown at bottom of table.) Total (1) Income2 (2) income3 (3) taxeS4 (4) tax (5) tax (6) taxess (7

Southeast Region, continued ..................

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

Jacksonville (See (b) below) 2,694,688 300,195 2,333,440 40,573 15,614 432 4,43'

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

...........

Little Rock (Arkansas) 829,956 156,428 661,471 10,139 ~ ................... 725 .................... 95 11,0

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

....

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

..... Nashville (Tennesse 1,900,693 178,491 1,686,611 26,497 4,776 163 4,15,1

........... ............ ............................................................................... .......................................................................... ............................ .... * * .... * ' "

New Orleans (Louisiana) 1,344,563 55,581 1,258,830 19,913 4,823 57 5,35E

Central Region 13,428,089 2,599,699 10,527,227 131,696 24,992 1,881 42,594

...C:* ''.- --..........................

........ ........ .................. ..... * ..... *

........ .......-............-.............. *

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

incinnati (See (a) below) 2,000,189 332,869 1,629,967 25,756 8,748 291 2,W

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

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

Cleveland (See (e) below) 2,260,070 244,964 1,960,521

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

2

.

6

. .

2

.

46

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

6

. .

044.....................

3

.

1

.

8

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

2

.

1

.

97

.

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

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

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

Detroit (Michigan) 5,087,110 1,851,214 3,182,879 42,023 5,120 987 4,88E

fn. : -* " * ........

-*....... *** ....*** .... * ...... * ............. ............ *** ... * .......... .........

* ...*' * .......... * ** .... -*... *-........ * ..... -...... *-..................

dianapolis (Indiana) 2,055,455 121,664 1,905,615 20,394 3,576 .................. 250 3,95;

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

Louisville (Kentucky) 1,204,194 102,087 1,082,143 11,101 ....................

956 9 7,897

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

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

Parkersburg (West Virginia) 821,071 46.901 766,102 6,175 549 26 1,31 E

Midwest Region 12,310,651 2,271,229 9,801,007 172,272 29,431 9,405

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

2

.

7

.

22

.

7

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

........................ i7plizi ..................... :1AW .................... 1 ~q'w .....................

.................... A?~ ...................... ........................

...Phi.c.a.gq (qqq.(q) ~ ..................... ~IMIN........... ...... i ?A?lpqq ..................VWW.................... ................. iA'W ................. i.lqq~ ..................... lpx

PAs Mginess 09y@) ............................... 415,01 .................... 11.?,g~4 .................... ..................... Alp9q .................... ~5~ ...................... ........................1! F2

4rgq.(Nqq~ Nkota) M%M N1W iqq1?P :IA?q 147 i 43E

HplAn.q.(MqqtAqqi) ................................ ZQ417pp..................... .................... i 4717~q ..................... .................... §?~ ..................... ................ ........ 5~9

Mllyv@iRl~q@. (Wisco.nsin) ........................ i'WliP

............................... ~iv§? ..................... ....................415'~q~ ..................... ................... ...................... ....................... 1,15A.1

(Mis~quri)..................... ...... !'T~5'm .................... 491M ?A-M AMT Mg~

......................... !'~~9'474 .................... M'0715 .................. ....................4W ..................Mpi.................. ......................

Springfield (See (c) below) 923,744 103,341 806,952 8,946 2,357 34 2,113

Southwest Region 13,495,376 1,970,067 10,211,277 190,690 50,202 3,003 1,070,137

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

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

uquerque (New Mexico) 465,893 6,366 431,185 6,338 1,306 45 654

. .. .. .... ..

st

.I.

n

. .

(S

.

ee

.

g)

.

belo

.

w)

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

I

66~ .................... ..................

78

.

0

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

40,:45 26,440 1

C4 ... .. .... . ..

eye n ne (Wy oin I ng 71002

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

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

6ilias (See (g) below) 2,977.058 429,945 1 147 41,825 8,128 1.002 140,011

k............................................................................................................

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

Uen"Fer (Colorado) 1,143,128 136,504 1.-i6d ~i i,-5-5-5

k... it .... . .................................. - ......................................................... ............................... : .......................................................... ...................

ou on ee g) below) 2,868,631 489,979 1,488,889 29,806 10,237 431 849,290

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

...................4,.64i....... .............. 6i .................... ~~,-~46

61itioma City (Oklahoma) 993,354 81,586 862,168

04

oenix (A r izona) 1 269,8 82 92 1 14 61 8 3 4 13 800

81 7 7 8 64 1 51 944

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

.................. i.'6.

u; ita (Kansas) 780,675 82,188 685,139 9,805 2.026 66

,

0

Western Region 19,089,158 2,540,335 16,095,944 330,528 92,588 2,477 27,286

....

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

Anchorage (Alaska) 210,691 20,886 183,836 4.078 871 1 1 1,020

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

-I .............................

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

Boise (Idaho) 307,567 63,289 239,317 4,158 279 14 508

.............. k .........................................................................................................................................................................

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

Honolulu awaii) 446,099 52,919 381,978 7,656 2,659 (2) 888

6........ ...............................................................................................................................................................................................................

i ....

guna Niguel (See (a) below) 4,120,379 419,632 3,619,707 54,418 22,792 322 508

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

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

Las Vegas (Nevada) 513,183 56,958 446,642 7,782 1,359 58 384

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

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

Los Angeles ee (a) below) 4,059,710 584,600 3,371,235 76,322 21,629 419 5,505

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

........

Portland (Oregon) 1,480,706 120,155 1,333,542 17,353 7,325 47i........... ...... *1*.859

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

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

.....

* ..... *............. .. * * .... * '

Sacramento (See (a) below) 1.764,997 105,236 1.628,121 22,836 7,272 151 1,381

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

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

San Francisco (See (a) below) 1,802,862 425,313 1,277,831 74,633 18,629 155 6,401

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

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

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

an Jose (See (a) below) 2,435,143 344,986 2,047,706 32,510 6,537 841 2,563

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

eattle (Washington) 1,947,822 346,360 1,566,029 28,881 3,234 48 3,270

International 1,235,625 347,278 820,894 63,157 2,535 226 1,534

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

Puerto Rico 69,324 7,705 50,499 10,540 30 60 489

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

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

r 1,166,301 339,573 770,396 52,617 2,505 166 1,045

Other miscellaneous refunds 2,201,101 (89,931) 758,380 804,650 - - 728,002

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

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

Highway and Airport Trust Fund6 381,501 (89,931) (4,713) 476,145

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

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

Excess FICA creditS7 804,650 804,650

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

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

U.S. Customs and BATF5 251,857

251,857

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

:

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

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

................................. Earned income credit offsets 512,274 512,274

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

nd reversai u nclass ified9 250,820

.

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

250. 82 0

.

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

Totals for states not shown above

(a) California 14,183,091 1,879,768 11,944,600 260,619 76,860 1,888 ..........

1.9,35.7

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

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

(b) Florida 5,038.019 460,582 4,451,445 77,513 39,672 1 7,213 .................

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

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

1 0 43 12,395

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

5:6.73,485 ..................1:3.70,72.1...................

4,2.0.3,89.6.....................6.9.,721 ..................

1.5.,.709...

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

(d) No

.

w

.

York 10.922,588 3,482,085 7,251 450 134,379 33,390 ..................6~1-

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

...

...

(

.

e)

-6h.

io

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

4

.

.2

.

60,25

.

9

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

5

.

77,83

.

3

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

3.59

.

0,48

.

8

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

52 002 1 4 792 6 09...... .......... i~,53-4

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

.........

...................... .......... (f) Pennsylvania 4,789,484 831,332 3.888,381 56,023 7,465 (439) .................. 6,723

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

(g) Texas 8,259,693 1.457,975 5,634,816 98,070 36,571 2,566 1,029,696

29
Table 6 - Number of Internal Revenue Refunds Issued

Internal revenue regions

and districts, states and

otherareas. (States represented by single districts

indicated in parentheses;

totals for other states

shown at bottom of table.)

United States, total 69,272,017 638,150 86,265,366 2,258,102 12,585 1,597 86,107

North-Atlantic Region 11,159,512 80,439 10,779,212 288,262 2,313 247 9,039

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

Albany (See (d) below) 786,535 5,309 761,653 18,951 95 5 522

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

Augusta (Maine) 435,279 3.719 420,449 10,537 48 6 520

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

Boston (Massachusetts) 2,143,281 18,635 2,071,857 51,022 408 46 1,313

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

Brooklyn (See (d) below) 2,261.960 9,950 2,194,668 55,646 354 28 1,314

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

Buffalo (See (d) below) 1,894,886 10,637 1,854,700 28.460 173 16 900

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

Burlington (Vermont) 201,733 1,895 192,307 7,182 24 4 321

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

Hartford (Connecticut) 1,300,441 10,916 1,249,882 37,671 437 38 1,497

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

Manhattan (See (d) below) 1,360,398 13,468 1,294,527 59,547 636 92 2,1 10

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

Portsmouth (New Hampshire) 418,068 3,132 403,197 11,392 66 2 279

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

Providence (Rhode Island) 356.931 2,778 345,972 7,854 72 10 245

Mid-Atlanflc Region 11,527,145 76,576 11,137,950 298,949 1,838 246 11,586

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

Baltimore (Maryland & D.C.) 2,087,220 16,164 2,007,509 60.938 522 52 2,035

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

Newark (New Jersey) 2,897,688 21,118 2,783,143 88,225 706 101 4,395

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

Philadelphia (See (f) below) 2,650,030 15,054 2,571,199 61.645 245 41 1,846

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

Pittsburgh (See (f) below) 1,479,015 7,142 1,439,492 30,846 92 12 1,431

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

Richmond (Virginia) 2,163,858 14,845. 2,096,236 50,878 239 36 1,624

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

Wilmington (Delaware) 249.334 2,253 240,371 6,417 34 4 255

Southeast Region 16,554,139 1(15,493 16,002,585 426,835 2,019 307 16,900

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

Atlanta (Georgia) 2,216,198 15,768 2,142,178 55,946 149 28 2,129

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

Birmingham (Alabama) 1,384,291 6,280 1,347,687 29,122 46 7 1,1149 ............................................... ...................................................... ...........

Columbia (South Carolina) 1,213,786 7,564 1,179,246 25,481 43 2 1,450 ... .................................................................................. .......................

R. Lauderdale (See (b) below) 1,945,959 15,229 1,853,303 75,426 380 128 1,493 .. ................................................. ........................... I .................................

Greensboro (North Carolina) 2,423,728 16,325 2,353,953 51,462 235 23 1,730 ................................................................................................ .................

Jackson (Mississippi) 828,178 4,458 804,996 17,868 68 9 779

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

Jacksonville (See (b) below) 2,607,240 16,407 2,514,187 73,070 557 54 2,965 .............................................................. ...................................................

Little Rock (Arkansas) 763.366 4,717 738,357 19,335 56 11 890

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

Nashville (Tennessee) 1,821,708 10,996 1,764,462 42,856 302 35 3,057 ............................................................................................................. ....

New Orleans (Louisiana) 1,349,685 7,749 1,304,216 36,269 183 10 1,258

Central Region 11,295,639 75,185 10,984,104 226,165 967 145 9,132

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

Cincinnati (See (e) below) 1,795.972 11,618 1,748,461 34,133 211 52 1,497

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

Cleveland (See (e) below) 2,221,290 16,018 2,160,167 43,091 208 31 1,775

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

Detroit (Michioan) 3,283,341 28,316 3,180,091 72,465 228 30 2,211

.............. Indianapolis *(Indiana) ......... ........ *2,006.348 ....... -. ....9,841 * ....... .... 1,954,817 * ... -...... -39,754 .................... 177 *20..... * .... 1,739* '

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

Louisville (Kentucky) 1,192,525 6,039 1,160,126 24,947 110 9 1,294

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

Parkersburg (West Virginia) 796,163 3,273 780,442 11,795 33 4 616

Midwest Region 10,895,8T7 97,127 10,509,794 253,825 1,467 173 13,501

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

Aberdeen (South Dakota) 221,247 2,502 211,793 6,388 15 0 549

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

Chicago (See (c) below) 3,095,852 24.707 2,980,914 76,698 473 62 2,998

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

Des Moines (Iowa) 882,181 10,629 848,820 21,146 ' 121 2 1,463

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

Fargo (North Dakota) 194,224 1,934 186,049 5,772 19 1 449 .. ........................................................................................ ................... ..

Helena (Montana) 252,177 3,391 240,123 8,173 38 5 447

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

Milwaukee (Wisconsin) 1,651,009 14,726 1,595,776 38,600 175 4 1,728

30

Internal revenue regions

and districts, states and

other areas. (States representL-d by single districts

indicated in parendmes;

totals for other states

shown at bottom of table.

Midwest Region, continued

44

&

110 "0' 4

.................................. Omaha (Nebraska) 528-261 6,518 507,059 13,600 74 2 1,008

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

St. Louis (Missouri) 1,705,114 14,526 1,648,048 40,473 253 53 1.761

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

St Paul (Minnesota) 1,414,023 11,755 1,367,637 32,428 134 38 2,031

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

Springfield (See (c) below) 951,789 6,439 923,575 20,547 155 6 1,067

SOutbwBst R0910n 11,171,241 76,362 10,783,038 298,589 1,116 208 11,928

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

Albuquerque (New Mexico) 516,951 2,638 500,953 12,781 45 10 524

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

Austin (See (g) below) 1,966,252 10.420 1,905,713 47,397 253 44 2,425

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

Cheyenne (Wyoming) 154.512 1,696 147,695 4,826 21 1 273

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

Dallas (See (g) below) 2,404,910 17,389 2,315,196 69,294 246 42 2,743

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

Denver (Colorado) 1,132,918 8,599 1,089,275 33,780 106 16 1,142

................................... ...................................................... 4 .......................

Houston (See (g) below) 1,475,636 10,852 1,422,047 41,263 112 41 1,321

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

Oklahoma City (Oklahoma) 995,133 6,483 962,543 24.676 102 12 1,317

......

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

Phoenix (Arizona) 1,209,793 7,595 1,171,330 29,994 134 17 723

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

Salt Lake City (Utah) 517,540 3,248 499,382 14,418 19 9 464

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

Wichita (Kansas) 797,596 7,442 768,904 20,160 78 16 996

Western Region 14,772,281 122,615 14,185,169 447,714 2,809 260 13,714

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

Anchorage (Alaska) 185,609 1,466 176,875 6,966 8 1 293

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

Boise (Idaho) 311,228 2,703 298,046 9,941 20 3 515

...

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

Honolulu (Hawaii) 409,903 5,103 393,043 11,298 66 13 380

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

Laguna Niguel (See (a) below) 3,054,850 23,547 2,946,587 82,262 432 44 1,978

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

Las Vegas (Nevada) 459,600 3,221 442,951 12,906 49 4 ...... 469

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

Los Ange les (See .(a) below) 2,62 9, 084 23,21 3 2 521,8 03 81,47 2 595 53 1 94 6

. . . . . . . . . . .. . .. . ....... .... .... . . . .. . ..... . . .... . . . . ....... . . ...... . ...... . ..... . . . Portland (Oregon) 1,408,043 10,146 1,367,003 28,316 324 32 2,2?2

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

Sacramento (See (a) below) 1,541,018 12,162 1,482,354 45,155 256 32 1,059

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

San Francisco (See (a) below) 1.,121,2.63 11,197 1,047,748 60,086 555 31 1,646

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

San Jose (See (a) below) 1,925,611 15,420 1,853,256 55,059 296 27 1,553

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

Seattle (Washington) 1,726.072 14,437 1,655,503 54.253 208 20 1,651

International 700,937 4,4113 678.268 17,743 166 10 397

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

Puerto Rico 69,973 118 53,345 1 6,453 6 3 48

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

Other 630,964 4,325 624,923 1,290 160 7 259

Other miscellaneous refunds 1,205,245 - 1,205,246 -

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

Highway and Airport Trust Fund

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

Gasoline and excess FICA credits - -

-U.S........ Customs *- ............. Service and *BATF ...... *"*** ................. .... ........ ...........

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

Earned income credit offsets

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

Refund reversals unclassified2 1.205,246 - 1,205,246 - -

Totals for states not shown above

(a) California 10,271,826 85,539 9,851,748 324,034 2,134 187 8,184

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

(b) Florida 4,553,199 31,636 4,367.490 148,496 937 182 4,458

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

(c) Illinois 4,037,641 31,146 3,904,489 97,245 628 68 4,065

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

(d) New York 6,303,779 39,364 6,095,548 162,604 1,258 141 4.864

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

(e) Ohio 4,017,262 27,636 3.908,628 77,224 419 83 3,272

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

(f) Pennsylvania 4,129,045 22,196 4,010,691 92,491 337 53 3,277

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

(g) Texas 5,846,798 38,661 5,642,956 157,954 611 127 6,489

Table 7 -Number of Returns Filed', continued

Internal revenue regions and

districts, states and other areas.

(States represented by single

districts indicated in parentheses;

LI

p

totals for other states shown at AP 0 0\ &

'A

bottom of table.)

Midwest Region, continued

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

Fargo (North Dakota)

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

559,491

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

283,087

..... ......

119,979

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

7,533

...........

1,831

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

5,477

.........

.

9,718

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

167

........

847

.........

95,341

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

2,527

.... ...

3,998

...........

..

8,538

..........

...........

20,448

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

Helena (Montana)

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

721.965

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

365,130

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

144,408

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

7,452

...........

1,789

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

7,415

... .....

15,960

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

227

........

858

.........

123,664

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

2,572

.......

4,001

...........

6,175

..........

42,314

... ........

Milwaukee (Wisconsin)

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

4,028,491

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

2,280,331

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

782,055

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

61,727

...........

11,946

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

28,460

.........

74,405

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

961

........

3,606

.........

580,298

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

12,235

........

27,952

...........

23,083

..........

141.432

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

Omaha (Nebraska)

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

1.373.275

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

740,368

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

268,316

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

18,776

...........

2,960

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

11,898

.........

29,946

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

526

........

1,522

.........

217,024

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

4,741

........

7,889

...........

17,707

..........

51.602

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

St Louis (Missouri)

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

4,110,127

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

2,283,123

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

822,457

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

69,645

...........

11,343

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

28.023

.........

81,213

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

1.230

........

2,978

.........

599,155

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

12,625

........

22,173

...........

20,885

..........

155,277

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

St Paul (Minnesota)

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

3,661,829

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

2,033,042

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

677,679

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

49,760

...........

9,456

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

31,359

.........

79,239

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

840

........

5,158

.........

530,074

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

14,206

........

28,143

...........

44,512

..........

158,361

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

Springfield (See (c) below) 2,327,661 1,331.697 491,494 32,038 7,234 14,754 32,436 898 1,745 318,453 6.935 12,143 13,339 64,495

Southwest Region

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

26,174,260

.... . .

14,800,011 4,381,837 330,889 100,570 241,167 548,979 6,978 20,256 3,701,7" 63,588 124,243 104,775 1,749,223

Albuquerque (New Mexico)

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

. .. .....

1,146,211

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

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

674,195

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

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

186,651

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

...........

9,663

...........

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

3,727

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

.........

9,292

.........

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

20,486

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

........

285

........

.........

670

.........

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

164,655

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

........

2,761

........

...........

4,716

...........

..........

5,227

..........

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

63,883

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

Austin (See (a) below)

:

4.046.315 2.408.231 599:958 47:387 15,810

.

32,888 64,985 983 3:511 559:352 9:525 13~068 14,336 276:281

..........

Cheyenne (Wyoming)

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

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

401,706

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

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

210,008

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

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

76,088

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

...........

3,660

...........

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

1,304

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

.........

4,627

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

9,279

..... ..

84

...... ..

478

..... .

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

69,114

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

........

1,407

........

...........

1,664

...........

..........

2,801

..........

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

21,192

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

Dallas (See (g) below)

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

5,675,551

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

3,180.484

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

900,385

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

81,523

...........

..

29,357

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

.........

63,035

.........

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

115,475

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

...

....

1,514

........

. . I

4,329

.........

.

813,842

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

13,462

........

26,235

...........

25,257

..........

420,653

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

Denver (Colorado)

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

2,955,885

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

1,607,026

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

516,791

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

34,186

..........

9,209

.. .

29.829 79,833 792 2,456 446,965

. .... ..

8,634

........

17,479

...........

10,934

..........

191,751

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

Houston (See (g) below)

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

3,344,444

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

1,932,288

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

483,075

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

.

42,312

..........

.. .........

15,613

.

.........

27,816

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

76,866

........

822

... .....

2,998

..... .. .

445,285

. .

5,975

.......

16,693

...........

10,573

..........

284,128

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

Oklahoma City (Oklahoma)

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

2,417,087

.... .

1,332,567 433,756

.

32,116

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

8,785

.........

18,748

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

53,512

........

750

.........

1,637

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

349,218

.

6,160 10,286 12,461 157,091

Phoenix (Arizona)

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

.... .....

2,908,824

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

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

1,636,387

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

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

574,798

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

...........

32,104

...........

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

6,601

.. .

.........

23.766

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

62,390

........

867

.........

1,763

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

377,003

. . .

........

6,136

........

...........

14,408

...........

..........

6,181

..........

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

166'420

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

Salt Lake City (Utah)

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

1,183,289

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

702,624

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

.

168,607

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

17,715

..... .....

....... ....

3,022

..........

.........

14,363

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

27,460

........

181

.

.........

613

... .....

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

163,808

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

2,589

....... :

7,142

...........

4,261

..........

70,904

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

Wichita (Kansas) 2,094,948 1.116,201 441,728 30,223

....

7,142

........

16,803

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

38,693

...... .

700

.

1,801

. . .

312,502 6,939 12,552 12,744 96.920

Western Region

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

$4,891,884

......

19,321,596 6,834,487 360,768 91,725 330,700 618,653 14,589 21,620 4,779,927 83,855 212,692 114,424

...

2,106,848

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

Anchorage (Alaska)

............*-- '* ..... ** .... *

........

518,161

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

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

331,440

..

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

55,808

...........

1,889

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

721

.........

4,686

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

8,470

........

72

.........

216

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

64,867

........

1,744

...........

2,421

. ...

.......

2,186

..........

43,641

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

Boise (Idaho)

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

800,866

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

....440,705 * ...-

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

.....143,486 ** ......

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

......7,441 -..

...........

. * ........ 1,638

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

....... 8,302 .....16,234 * ......

.

........

147

.

.........

444

.........

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

130,872

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

........

2,025

........

...... .

4,084

...........

7,094

..........

38,394

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

Honolulu (Hawaii)

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

1,000,625

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

563,865

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

179,935

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

10,385

...........

..

2,600

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

.........

6

,

843

..... ... ...

24,651

...... .

448

.

1,563

.........

126,460

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

2,233

........

7,216

...........

1,684

..........

72,742

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

Laguna Niguel (See (a) below)

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

7,122,800

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

4,096,914

..........

1,383,632 64,541

.

.

13,079

.........

66,642

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

120,532

.... ...

2,927 3,470

.

900,591 13,357

. ...

40,322

...........

13,575

..........

403,218

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

Las Vegas (Nevada)

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

1,070,680

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

...

633,405

...... ...

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

176,374

.

. .........

8,670

. . .

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

2,295

....... .

8,429

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

25,505

........

220

.........

721

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

135,111

... .

1,704

. ....

4,747

.. ........

7,888

..........

65,611

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

Los Angeles (See (a) below)

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

6,013,781

. ...

3,378,971

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

1,008,430

... ... ..

69,727

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

21,140

.........

67,228

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

129,877

........

3,149

.........

3,238

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

878,296

. ..

14,706

.

43,075 9,745 386,199

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

Portland (Oregon)

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

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

2,528,958

.

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

1,322.439

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

531,540

...........

35,878

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

4,864

.........

18,182

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

50,703

........

637

.........

1,963

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

370,953

........

6,871

...........

15.707

..........

11,177

...

.

158,044

.......

.

Sacramento (See (a) below)

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

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

4,261,260 '

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

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

2,251,494

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

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

981,634

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

...........

33,784

..........

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

10,422

.

...... I ..

39,716

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

53,771

....

1.847 ......... 2,418 ... * 575,173 ...... *- .

..... ..

10,549 .......

........

24,241 ......

...........

. * ..... 11,885

.....

264,326

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

San Francisco (See (a) below)

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

2,639,692

.. .

1,349,919

.

592,231

.

44,449

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

11,354

.........

27,653

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

42,534

........

1,854

.........

1,942

....... .

363,109 9,168 20,618 3,791

. .....

171,070

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

San Jose (See (a) below)

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

. . .........

4,579,452

........ .

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

2,597,698

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

910,548

...........

39,311

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

12,456

.........

46,218

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

64,465

........

2,072

.. .......

2,845

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

613,318

........

10,295

...........

27,485

... .

14,595

.......

238,146

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

Seattle (Washington)

.....

4,355,609

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

2,354,746

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

870,869

...........

44,693

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

11,156

.........

36,801

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

81,911

........

1,216

.........

2,800

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

621,177

........

11,203

...........

22,776

...

30,804 265,457

International 1,704,782 1,033,043 200,576 1,197 312 1,580 25,181 569 388 216,299 706 1,967 3,498 219,465

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

Puerto Rico

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

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

400,368

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

117,274

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

72,508

...........

336

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

68

.... ....

211

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

847

.........

31

.........

29

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

202,319

........

141

...........

1,623

..........

133

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

4,848

................ . Other..............

1,304,414

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

915,769

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

128,068

...........

861

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

244

.........

1,369

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

24,334

.........

538

. ........

359

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

13,980

........

565

...........

344

..........

3,365

........ ...

214,618

Totals for states not shown above

(a) California

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

24,616.985 13,674,996 4,876,475 251,812 68,451 247,457 411,179 11,849 13,913 3,330,487 58.075 . 155,741 53,591

.

1,462,959

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

(b) Florida

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

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

12,175,949

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

6,229,187

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

2,698,203

...........

140,304

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

33,084

.........

63,524

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

407,539

.........

4,714

.........

13,434

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

1,689,376

........

20,858

...........

46,381

........ .

29,277

.

..

800,068

: ........ .........

(c) Illinois

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

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

9,406,771

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

5,353,993

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

1,785,462

...........

167,240

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

46,687

.........

68,500

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

205,427

.........

3,640

.........

7,675

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

1,259,837

........

25,029

...........

66,949

........ .

32,806

...

...

383,526

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

(d) New York

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

....

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

14,820.199

.

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

8,063,631

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

2,693,844

...........

226,870

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

53,133

...

118,770

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

443,561

.........

5,856

.........

16,096

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

2,221,443

........

45,576

...........

111,588

.......

33,398

...

786,433

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

....

(e) Ohio

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

..

...........

8,622,071

. .

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

5,113,616

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

1,541,371

...........

140,419

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

18,824

.........

60,942

.......... .

161,395

.........

2,210

.........

7,192

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

1,088,936

........

24,326

...........

54,934

......

32.577

...

375,329

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

(f) Pennsylvania

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

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

9,643,573

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

5,495,703

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

1,963,328

...........

198,287

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

26,462

....... .

76,955

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

169,693

... .....

2,678

.........

7,300

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

1.225,550

. ......

26,804

...........

59,115

.......

41,649 350,049

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

(g) Texas

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

13,066,310

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

7,521,003

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

~,983,41 8

...... ....

171,222

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

60,780

.........

123,739

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

257,326

.........

3,319

.........

10,838

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

1,818,479

........

28,962

...........

55,996

..........

50,166

.....

981,062

32

Table 11 -Returns Filed, Examination Coverage (1992)

Returns filed Revenue Tax Service Percent

CY 1991 Agents Auditors Centers Total Coverage

Individuals, total 113,629,200 210,166 536,640 M,549 1,039,355 0.91

1040A, TP11 under $25,000 43,430,500 12,432 154,387 133,661 300,480 0.69

Non 1040A, TPI under $25,000 18,655,500 16,033 83,386 20,334 119,753 0.64

TPI $25,000 under $50,000 27,492,300 25,541 106,912 29.219 161,672 0.59

TPI $50,000 under $100,000 13,656,900 27,494 81,249 29,256 137,999 1.01

TPI $100,000 and over 3,172,700 47,064 45,764 63,241 156.069 4.92

Schedule C-TGR2 under $25,000 2,184,700 9,806 21,280 1,535 32,621 1.49

Schedule C-TGR $25,000 under $100,000 2,804,700 24,345 26,472 5,052 55,869 1.99

Schedule C-TGR $100,000 and over 1,581,600 41,740 11,456 9,293 62,489 3.95

Schedule F-TGR under $100,000 572,300 1,756 4,047 370 6,173 1.08

Schedule F-wIGRR $1,00,000 and over 278,000 3,965 1,687 588 6,230 2.24

Fiduciary 2,778,700

Partnerships 1,630,700 0.73

Corporations, total 2,fi2l.900 75,797 2,588 78,385 2.99

Assets notreported 241,700 2,745 1,024 3,769 1.56

.............. --. ........................................................ I ................................ .................... .......................... ................ ...................................................

Under $250,0003 1,679,900 19,869 722 20,591 1.23

$250,000 under $1 mil 436,300 17,393 214 17,607 4.04

$1 mil under $5 mil 173,300 17,120 271 17,391 10.04

............................................................................................................... ......... .................................................. : ......... ...... I ......... 1. - ~ ...... I ......... ......

$5 mil under $10 mil 25,100 4,667 90 4,757 18.95

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

$10 mil under $50 mil 28,600 6,580 96 6,676 23.34

$50 mil under $100 mil 7,100 1,996 43 2,039 28.72

$100 mil under $250 mil 5,800 1,786 29 1,815 31.29

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

$250 mil and over 5,800 3.165 88 3,253 56.09

Form 1120F 18,300 476 11 487 11.9.6

Small business corporations 1,653,800

Estate, total 64,600

Gross estate under $1 mil 37,700 3,737 40 3,777 10.02

....

*''* ........... *"* ... -* ........... ..................... " * .... * .... * ...... ................ .......... * ........ ............ ........ * ........ ...................... * '' ** *' * ..... * ....... ....... Gross estate $1 mil under $5 mil 24,700 6,932 74 7,006 28.36

Gross estate $5 mil and over 2,200 1,218 12 1,230 55.91

Gin 156,WO

Income, estate and gift, total 122,745,700 323,961 535,640 3(",144 1,161,745 0.95

Excise 820,900 42,814 2,830 196 45,840 5.58

Employment 28,465,300 65,074 7,731 27 72,832 0.26

Windfall profit -262 - 1,577

Miscellaneous taxable -589 78

Miscellaneous nontaxable -

343

1,857

8,230

13,956

11,887

2,068

Returns Examined

- 1,472 3,329 0. 12

3,691 11,921

715 14,671 0.88

126 12,013 18.60

-

3 2,071 1.32

1,839

ffN

343

Service center correspondence contacts - - 168,743 150,743

Exempt Organizatfans4 519,600 12,801

Employee Plans 1,125,800 29,622 29,622

2.46

2.63

34
Table 11 -Returns Filed, Examination Coverage (1992), continued

Recommended additional tax and penalties Average tax and No-change

(in millions) penalty per return percent'

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

Revenue Tax Service Revenue Tax Service Revenue Tax

Agents Auditors Centers Total Agents Auditors Centers Agents Auditors

Individuals, total 3,919 1,223 1" 6,041 18,648 2,280 3,072 11

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

1040A, TPI under $25,000 197 230 354 781 15,839 1,489 2,647 11 14

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

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

..........

Non 1040A, TPI under $25,000 133 125 64 322 8,276 1,502 3,121 11 13

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

TPI $25,000 under $50,000 196 208 67 472 7,685 1,948 2,307 11 14

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

...........

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

.....

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

TPI $50,000 under $100,000 231 189 61 480 8,386 2,323 2,073 11 20

- ..........

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

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

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

TPI $100,000 and over 1,919 *''* ........ 179 301 ...... - .................. 2,400 ** ........ 40,785 ............ * ... -.... 3.920 4,761 12 26

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

Schedule G-TGR under $25,000 66 58 2 125 6,703 2,721 1,110 10 12

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

Schedule C-TGR $25,000 under $100,000 237 134 8 380 9,749 5,080 1,528 9 12

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

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

Schedule C-TGR $100,000 and over 830 90 39 959 19,881 7,881 4,182 13 18

.

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

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

Schedule F-TGR under $100,000 11 5 16 6,015 1,214 829 15 29

........................... i ........................................................................................................ ......................................................... ....................................

Schedule F~-TGR $1 0^,n 0 and ^over 1100 4 4 108 25,234 2,496 6,031 15 26 ..0

Fiduciary 28 1 29 15,064 8117 18

Partnerships 26

Corporations, total 18,062 22 18,084 238,289 8,536 23

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

Assets not reported 228 5 233 83,021 5,257 22

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

Under $250,000 201 2 203 10,109 2,471 25

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

$250,000 under $1 mil 212 1 213 12,171 6,463 27

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

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

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

$1 mil under $5 mil 372 4 376 21,715 13,843 25

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

$5 mil under $10 mil 207 207 44,381 3,987 23

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

$10 mil under $50 mil 622 4 626 94,521 - 39,079 18

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

$50 mil under $100 mil 327 1 327 163,668 .

- 14,686 14

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

$100 mit under $250 mil 585 1 586 327,755 34,372 9

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

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

$250 mil and over 14,972 4 14,976 4.730,474 - 45,532 4

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

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

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

Form 1120F 336 336 706,253 3,938 28

Small business corporations 31

Estate, total 1,210 1 1,211 101,791 4,571 10

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

Gross estate under $1 mil 71 1 72 19,119 - - - 10,984 12

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

Gross estate $1 mil under $5 mil 362 362 52,162 1,846 9

...........

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

Gross estate $5 mil and over 777 777 637,890 10

Gift 194 194 93,737 1 17

Income, estate and gift, total 23,413 1,223 923 25,559 72,270 2,280 3,064 15 16

Excise 360 3 363 8,400 1,225 332 12 3

.-Employment 555 17 572 8,528 2,169 4,549 6 8

Windfall profit 142 1 142 540,380 365 6

Miscellaneous taxable 24 1 25 41,382 9,348 25

Miscellaneous nontaxable 16

Service center correspondence contacts 271 271

Exempt Organizations 75 75 5,959

Employee Plans 348 348 11,748

1,608

35
Table 12 - Retums Filed, Examination Coverage (1991)

Returns Examined

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

Returns filed

................. i ........

Revenue

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

Tax

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

Service

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

Percent

GY 1990 Agents Auditors Centers Total Coverage

Individuals, total

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

112,304,900

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

200,735 499,886 422,901 1,123,522 1.00

1040A, TP11 under $25,000

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

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

43,693,800

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

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

11,687

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

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

130,513

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

245,995

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

388,195

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

0.89

Non 1040A, TPI under $25,000

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

18,912,800

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

....

16,910

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

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

79,192

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

19,170

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

115,272

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

0.61

TPI $25,000 under $50,000 26,935,400

. ....

25,829

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

108,789

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

36,609

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

171,227

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

0.64

TPI $50,000 under $100,000

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

12,509,900

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

26,125

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

83,095 30,140 139,360 1 1 1

:

TPI $100,000 and over

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

2,913,800

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

..

45,824

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

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

34.359

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

72,987

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

153,170 .. ............ -*5.26**'

Schedule C-TGR2 under $25,000

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

2,187,400

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

..

8,8114

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

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

21,344

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

1,587

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

31,815

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

145

:

Schedule C-TGR $25.000 under $100,000

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

2,745.900

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

...

20,209

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

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

25,834

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

4,793

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

50,836

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

185

:

Schedule C-TGR $100,000 and over

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

1,524,900

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

.

34,343

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

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

10,606

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

10,351

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

55,300

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

3.63

Schedule F-TGR under $100,000

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

606,600

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

.

3,206

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

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

41217

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

440

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

7,863

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

130

: Schedule F-TGR $100,000 and over 274,400

.

7,718

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

1,937

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

829

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

10.484

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

3.82

Fiduciary 2,680,900 2,403 - -

2,403 0.09

Partnerships 1,725,500 10,898 10,898 0.63

Corporations, total

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

2,685,100

...........

53,422

w

63,422 2.36

Assets not reported

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

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

231,700

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

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

2,475

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

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

2,475

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

1.07

Under $250,0003

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

1,650,400

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

...........

17,365

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

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

17,365

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

105

:

$250,000 under $500,000

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

301,500

..................... i ............

..........

............11119

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

-

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

-

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

6,119

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

2.03

$500,000 under $1 mil

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

206,600

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

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

7,121

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

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

7,121

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

3.45

$1 mil under $5 mil

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

201,100

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

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

11,250

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

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

11,250

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

5.59

$5 mil under $1 0 mil

.................................................... 1 ......

28,800

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

.

3,833

.

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

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

3,833

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

13.31

$10 mil under $50 mil

.......... 11 ...............................................

31,300

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

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

7,541

...

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

7,541

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

24.09

$50 mil under $100 mil

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

6,000

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

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

2,011

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

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

2,011

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

33.52

$100 mil under $250 mil ...........................................................4.600

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

. ..

1,960

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

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

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

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

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

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

1,960 ....................... . .

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

42.61 . .................

55250 mil and over

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

4,600

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

3,129 ..........

. .. ..

3,129

..

68.02

Form 11 20F 18,500

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

618

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

-

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

-

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

618

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

3.34

Small business carporations 1,536,100 13,004 - -

13,004 0.85

Form 1120 DISC - 323 - - 323 -

Estate, total

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

60,800 10,930 - -

10,930 17.98

........

Gross estate under $1 mil

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

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

35,300

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

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

3.484

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

3,484

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

9.87

Gross estate $1 mil under $5 mil

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

. ...

23,400

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

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

6,301

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

6

,

301

..........

26.93

Gross estate $5 mil and over

....

2100

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

1 1 d.1;

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

I IA;

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

U 9;9

Gift

Income, estate and gift, total

Excise

Employment

Windfall profit

Service center correspondence contacts

147,700

121,141,000

1,704

303,419

852,000 39,883

29,126,300 54,776

499,886

554

3,100

422,901

1,784

1,226,206

1.15

1.01

40,437 4.75

57,876 0.20

357 2 2,294

Exempt Organizations 487,400 14,891

Employee Plans 1,108,000 27,019

2,653

202,765

14,891 3.06

27,019 2.44

36
Table 12 -Returns Filed, Examination Coverage (1991), continued

Recommended additional tax and penalties

(in millions)

................................... -, ...... -.............

Revenue Tax Service

Agents Auditors Centers Total

Average tax and

penalty per return

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

Revenue Tax Service

Agents Auditors Centers

No-change

percent

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

Revenue Tax

Agents Auditors

Individuals, total 4,011 1,201 1,453 6,665 19,981 2,403 3,436 11 15

1040A, TPI under $25,000 215 220 804 1,239 18,396 1,680 3.269 10 13

Non 1040A, TPI under $25,000 151 120 38 309 8,924 1,515 2,014 11 13

TPI $25,000 under $50,000 239 223 146 608 9,253 2,054 3,955 11 13

TPI $50,000 under $100,000 275 182 70 527 10,540 2,192 2,325 13 19

TPI $100,000 and over 1,617 158 335 2,110 35,295 4,600 4,565 12 27

Schedule C-TGR under $25,000 83 58 1 142 9,343 2,717 644 10 10

Schedule C-TGR $25,000 under $100,000 254 137 10 401 12,580 5,303 2,167 9 11

Schedule C-TGR $1 00,000 and over 1,062 94 46 1,202 30,918 8,857 4,473 12 19

Schedule F-TGR under $100,000 25 5 30 7,798 1,186 862 13 26

Schedule F-TGR $100,000 and over 90 4 3 97 11,661 2,065 3,864 11 19

Fiduciary 50 50 20,807 15

Partnerships 31

Corporations, total 21,947 21,847 344,467 21

Assets not reported 164 164 66,263 23

Under $250,000 213 213 12,214 23

$250,000 under $500,000 118 Its 19,281 25

$500,000 under $ $1 mil 114 114 16,009 27

$1 mil under $5 mil 364 364 32,369 25

. I ................. I ............................... .............................................. ....... I.- ... ............................. I ................... ............... .......... ...... ............................

$5 mil under $10 mil 228 228 59,469 22

$10 mil under $50 mill 679 679 90,028 16

$50 mil under $100 mil 329 329 163,360 11 -

$1 00 mil under $250 mil 722 722 368,367 9

$250 mil and over 17,648 17,648 5,640,109 4

Form 1120F 1,268 1,268 2,051,786 33

Small business corporation 29 29 2,230 33

Form 1120 DISC 24

Estate, total 820 820 75,023 12

.......... 111-- ............................... I ................................................................... ......... ............. .....................................................................................

Gross estate under $1 mil 70 70 20,093 12

Gross estate $1 mi(under $5 mil . 341 341 54,116 10

Gross estate $5 mil and over 409 409 357,205 9

Gift 141 141 82,746

Income, estate and gift, total 25,898 1,201 1,453 29,552 88,650 2,403 3,436 15 15

Excise 299 1 300 7,497 1,057 14 6

Employment 490 5 503 91091 1,605 6

Windfall profit 153 1 154 426,831 626

Service center correspondence contacts 321 321 1,583

Exempt Organizations 167 167 11,188

Employee Plans 41 41 1,506

5

3
Table 13 -Number of Returns Examined (1992)

(BY class of tax and by internal revenue region, district and other area)

MIS qF 14%

United States 1,325,689 1,M9,355 11,921 3,329 78,385 14,571 12,013 2,071 72,832 45,840 1,839 667 343 12801 29,622

North-Aflanfic 150.868 116,634 1,935 797 11,728 2,292 2,348 424 3,9112 5,257 - 86 102 1,908 3,455

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

Mid-Atlantic 102,049 77,766 1,833 232 7,651 1.437 1,413 248 3,894 3,100 15 80 68 845 3,467 .............................................. ............................................................................................ .......................................................................................

Southeast 254,113 201.089 1,449 385 14,641 3,347 1,916 260 15,511 9,640 7 172 21 2,428 3,247 ........................................... .................................................. ....................................................................................................................................

Central 138,322 100.688 885 334 11,499 2,313 1,381 183 8,520 4,989 11 56 17 2,275 5,171

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

Midwest 120,582 86,378 1,086 614 8,039 1,286 1,468 387 6,926 8,162 15 82 53 2,467 3,619

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

Southwest 201,446 152,612 2,218 576 11,499 2,383 1,253 284 16.953 7.210 1,790 86 31 1,111 3,440

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

Western 349,319 298,651 2,514 390 13,144 1.611 2,083 283 14,033 7.464 1 104 51 1,767 7,223

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

International 8,990 5,537 1 1 184 2 151 2 3,093 18 -

1

-

North-Atlantlc Region:

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

Albany 6,315 4,645 11 29 745 128 161 9 217 367 -

3

-

............................................ ............................................................. ............. _- ...... - ...... ......... ............................... I .........................

Augusta 3,968 2,402 40 4 320 254 14 482 446 -

6

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

Boston 16,820 12,267 139 1 166 1,666 261 457 160 908 774 - 16 6 .............. .................................................. .................................................................................................................................................................

Brooklyn 23,873 14,957 60 5 2.241 379 - - 189 657 - 12 10 1,908 3,455 ........................................ I ...................................... ...................................................................................................................................................

Buffalo 11.968 9,204 58 46 990 117 220 50 272 999 -

9 3 ................................................................................................................................ ..................................................................................................

Burlington 2,920 1,761 11 -

72 31 - - 871 173 - 1 -

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

Hartford 13.964 10,612 82 62 1,280 232 415 69 322 855 - 7 28 - -

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

Manhattan 20.708 14,684 513 134 2,756 491 1,023 121 462 451 - 18 55 - -

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

Portsmouth 5,024 4,053 41 3 430 131 - - 122 243 - 1 ....

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

Providence 4,898 4,075 18 -

345 135 - 1 56 266 - 2 -

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

Andover Service Center 16,941 16,028 246 106 453 57 21 - 1 26 - 3 -

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

Brookhaven Service Center 23,469 21,946 716 242 430 76 51 8

Mid-Atlarttic Region:

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

Baltimore 19,236 11,724 183 34 1,460 345 464 33 675 1-

5

- 845 3,467

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

Newark 19,283 15,029 373 22 1,834 299 336 87 693 556 - 12 42

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

Philadelphia 13,928 11,126 402 21 1,201 219 293 62 582 -

- 10 12 .... ..................................................................................................... ................................................... .................... ...............................................

Pittsburgh 13,040 8,974 137 24 1,201 189 99 35 1,170 1,164 14 24 9

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

Richmond 17,074 13,624 152 26 1,515 246 221 31 587 650 - 18 4 .............................................................. ..........................................................................................

Wilmington .... * ................. * .......... .. .......... .......... 3,410 2,139 94 11 231 30 - - 171 729 1 3 1 .... ............................ ......................................................................................................................................................................... .......................

Philadelphia Service Center 16,078 15,150 492 94 209 109 16 a

Southeast Region:

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

Atlanta 39,140 26,253 142 15 2,660 316 379 87 1,619 1,988 - 5 1 2,428 3,247 .... ............................................................................................................................... ..............................................................................................

Birmingham 15,014 10,991 69 14 1,104 265 - - 1,699 853 1 18

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

Columbia 11,134 8,667 34 11 698 109 - - 987 622 - 5 1

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

R. Lauderdale 28,155 23,208 154 35 1,622 724 416 53 1,022 903 - 6 12 - -

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

Greensboro. 18,826 14,070 132 21 1,267 289 294 39 1,829 864 - 16 5- -

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

Jackson 11,833 9,607 47 9 555 106 - - 925 580 2 2 ................................................................... ................................................... ............................................................................................................

Jacksonville 29,479 23,069 237 11 2,190 766 261 27 2,192 701 - 25 -

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

...

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

Little Rack 12,838 9,670 72 6 848 202 -

2 910 1

.

064 1 63 -

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

Nashville 21,120 16,590 161 19 1,199 210 220 16 1,691 996 - 16 2-

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

New Orleans 24,137 17,913 109 22 1,809 1 223 312 36 2,635 1,069 2 7 -

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

Atlanta Service Center 20,989 20,400 139 159 188 67 31 5-

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

Memphis Service Center 21,448 20,651 153 63 , 501 70 3 2 1 4

38
Table 13 - Number of Returns Examined (1992), continued

(By class of tax and by internal revenue region, district and other area)

A

.0 X ,

'W 4 5,,

Central Region:

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

Cincinnati 21,473 9,748 141 94 1,993 198 372 102 785 5a5 4 5 2.275 5,171

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

Cleveland 21,821 14,930 124 105 2,733 327 388 53 1,823 1,313 8 16 1

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

Detroit 26,232 18,769 163 22 3,043 507 328 10 2,148 1.211 3 17 11

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

Indianapolis 18,654 13,285 196 25 1,796 910 240 13 1,615 569 5

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

Louisville 11,765 8,141 86 5 1,167 230 - 4 1,304 817 - 11 - - -

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

Parkersburg 5,983 3,773 31 5 685 95 53 1 844 494 - 2

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

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

Cincinnati Service Center 32,394 32,042 144 78 82 46 - -

1

- - 1

- - -

Midwest Region:

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

............... ................... Aberdeen 2,757 1,767 17 1 123 17 1 296 535

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

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

Chicago 26,403 15,279 331 48 1,933 209 356 150 1,153 813 13 14 18 2,467 3,61

*

9

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

.............. Des Moines 8,056 5,882 28 64 641 74 109 6 549 698 1 4 ........ . . ........

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

Fargo 4,076 3,101 15 15 182 52 42 4 289 372 1 1 .......... 2 ............... ...

................................ ;

..........

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

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

Helena 4,259 2,907 13 16 306 52 31 9 614 311

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

.............. Milwaukee 7,996 5,488 29 40 735 102 198 43 703 632 18 8

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

Omaha 6,106 3,287 34 17 526 37 116 26 451 1,601 10 1 . ... ..... .............. ...................................................................................................

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

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

Springfield 8,207 5,673 74 45 859 153 184 48 823 343

-

5

.......................................................................................... : .....................................................................................................................

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

St. Louis 14,352 9,912 204 54 1,219 211 273 40 874 1,542 - 9 14 - -

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

_ ......................

St. Paul 14,587 10,116 84 29 1,472 331 143 61 1,173 1,148 - 20 10 - -

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

Kansas City Service Center 23,783 22,966 257 285 43 48 15 - 1 167 - 1

Southwest Region:

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

Albuquerque 5,306 4,147 62 13 224 84 20 5 440 309 2 . ........... ........

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

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

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

Austin 21.792 11,164 136 36 1,452 352 161 48 2,856 1,178 1 2 6

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

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

Cheyenne 2,870 1,847 41 6 128 57 30 2 265 494

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

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

Dallas 36,765 25,072 272 73 2,421 324 309 47 2,656 996 36 7 1 1,111 3,440

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

Denver 19,787 13,550 197 66 1,588 325 147 30 2.874 997 - 10 3 - -

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

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

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

Houston 17,774 14,109 150 28 1,198 107 94 10 1,413 496 107 11 21

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

Oklahoma City 18,095 11,970 137 30 1,368 317 159 65 2,370 1,591 70* 18..................... ........

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

Phoenix 16,750 12,682 104 8 1,148 225 166 27 1,980 405 5 . .......

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

Salt Lake City 4,339 3,284 76 34 287 39 - - 454 165

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

3 Wichita 9,801 5,632 98 13 1,290 371 162 47 1,609 576

.

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

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

Austin Service Center 25,491 22,761 562 191 263 100 5

-

6 3 1,576 24

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

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

Ogden Service Center 22.676 21,994 383 78 132 82 -

3

4

-

Western Region:

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

Anchorage 5,128 4,239 18 8 240 20 15 7 472 1D9 .

.......

.

........

.

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

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

Boise 5,654 3,949 34 7 291 73 34 13 942 309 - 1 1 ...... ... . ........ -

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

Honolulu 3,627 2,283 21 21 411 28 50 - 396 417

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

Laguna Niguel 52,949 44,432 271 14 2,301 188 348 42 3,271 2,059 - 15 ......... 8 ...................-

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

... ...

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

Las Vegas 13,287 11,944 55 5 404 82 56 11 682 48 - - .

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

Los Angeles 62,506 46,970 722 14 2,482 166 498 31 2.014 590 - 13 16 1,767 7,223

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

Portland 10,178 6,817 47 36 1,153 153 165 54 1,042 697 - 14

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

Sacramento 23,428 19,718 172 7 1,213 123 263 41 1,039 845 - 7........ ..... ... . ....... -

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

....... ...................................................... w ................

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

San Francisco 21,148 17,523 154 38 1,074 108 , 257 19 1.684 287 - 3 1 ... . .... ........ -

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

1 10 24 - - San Jose 27,898 23,961 175 35 1,528 145 233 34 751 1 ....................................................... ............................................................... ......................................

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

....

. ..

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

Seattle 23,763 18,2G4 246 29 1,760 465 164 31 1,740 1.102 21 1 ........... .... ...

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

Fresno Service Center 99,753 98.611 599 176 287 60 20 -

39
Table 14 -Additional Tax and Penalties Recommended After Examination (1992)

(By class of tax and by internal revenue region, district and other area)

(In thousands of dollars)

S\ 4P 1~

United States 26,660,757 6,041,266 29,161 18,083,662 1,210,564 193,849 571,a44 363,161 142,156 25,1 M

North-Atlanfic 3,528,815 705,739 3,834 2,173,453 557,136 11,436 44,641 30,294 .......- 2.284

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

Mid-Atlantic 2,561,770 416,284 499 1,983,174 98,173 10,320 26,751 11,771 5,437 9,361

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

Southeast 2,959,692 927,993 839 1,539,729 129,534 124,362 96,812 137,107 ................ 5 3,311

.... ................................................................................................................ : ....................................................................... ......................

Central 4,146,767 469.751 2,076 3,413,143 73,321 4.083 47,280 39,074 96,288 1,752

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

Midwest 4,779,300 1,078,581 3,879 3,425,484 125,185 12,568 91,721 37,184 .......... 6 4,692

.... ...

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

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

Southwest 4,364,193 1,157,082 14,851 2,868,616 66,237 11,592 146,913 55,426 40,421 3.046

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

Western 4,203,690 1,265,877 3,183 2,616,582 138,075 19,463 107,655 52,195 658

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

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

International 116,549 19,959 63,481 22,903 24 10,071 ill

North-Atlantlc Region:

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

Albany 92,314 23,946 15 W021 4,585 12 4,193 3,403 138

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

Augusta 27,772 13,156 2 12,100 532 1,406 519 .............. . ...... ....... 57

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

Boston 264,249 70,820 2,040 155,165 20,130 2,610 9,360 4,095 30

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

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

Brooklyn 241,076 108.827 121,198 1,135 9,850 ....... ....... ............... 65 .................. .............. ....... ........................ ... ...... .... ........ I .................................................................................................. .... ...............

Buffalo 242,081 51,226 108 174,277 8,083 833 1,772 5,473 310

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

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

Burlington 15,098 5,366 7,928 1,304 501 ............... .............-

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

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

Hartford 288,817 57,597 587 198,560 23,267 1,293 2,076 4,016 1,420

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

Manhattan 2,093,905 188,957 611 1,376,019 500,658 6,041 20,026 1,592

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

Portsmouth 36,353 20,343 14,542 ...................................... ........... 940 527

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

-

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

......

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

Providence 78,049 21,235* ............ ....... 53,789 ......... 116 2,428 316 165

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

Andover Service Center 41,787 39,386 61 1,944 396 ...................I .............................................

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

Brookhaven Service Center 107,315 104,880 410 1,910 17 99

Mid-Atlantic Region: ...........

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

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

.......... Baltimore 509,064 72,439 72 377,311 55,099 660 3,420

'

62 .....................

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

Newark 737,091 98,281 21 608,416 18,771 1,894 7,050 2,544 114

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

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

Philadelphia 304,457 80,157 125 204.489 10,001 2,538 7.062 . ............... ............ ....87... .............................................................................................................................................................................................

Pittsburgh 263,191 52,755 71 184,119 5,000 1,313 , . 4,911 4,193 5,435 5,394

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

Richmond 143,659 65,046 185 58,860 9,303 3,915 2,931 3,388 31

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

Wilmington 561,442 8,287 546,570 1,263 1

.

64

.6.... .............

2

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

3

.

A

.73...

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

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

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

Philadelphia Service Center 42,865 39,319 26 3,407 114

Southeast Region:

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

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

Atlanta 471,333 94,963 98 271,769 19,517 55,850 8,177 20,959

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

Birmingham 160,267 44,995 52 102,985 4,354 7,255 626

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

Columbia 56,781 29,803 64 15,009 7,913 3,940 52

........................... ................................................... .......................... ........... ................ .............................................................................................

Ft. Lauderdale 338,844 161,450 194 94,323 28.838 36,017 9,615 8,402 5

.......................................... .................................................... ...................... ............................................................................................................

Greensboro 332.240 68,305 9 230,609 19,326 738 10,665 2,431 158

...................................................................................................................... ...................................................................................

.........................

Jackson 85,370 31,562 41 50,370 1,874 1,506 4 13

............ ......................................................................................................... . .....................................................................

........... ...................

Jacksonville 300,866 140,854 4 113,631 19,628 9,164 11,404 5,479 702

...................................................................................................................... ............................... ......................................................................

Little Rock 156,028 39,395 32 90,101 2 22,687 3,101 710

...................................................................................................................... .............................................................................................................

Nashville 694,856 98,672 24 489,961 13,004 9,813 6,243 76,573 _565

............. ........................................................................................................ ............................... .....................................................................

New Orleans 215,828 T7,241 87 75,223 29,145 12,778 13,882 7,461 11

...................................................................... ............................................... .........................................................................................

.............

Atlanta Service Center 69,220 64,457 228 4,007 72 456

........................................................................................... I ......................... ................................................................................................ ..... . ..

Memphis Service Center 78,059 76,296 5 1.742 5 12

40
Table 14 -Additional Tax and Penalties Recommended After Examination, continued

(By class of tax and by internal revenue region, district and other area)

(In thousands of dollars)

Central Region:

A01 &

04' 111~ 14~P

........ I ......................................................................................................................... ...............................................................................................

Cincinnati 237,908 44,330 1,132 162,647 23,445 1.867 3,058 1,430

..................................................................................................................................................................................................................................

Cleveland 382,870 86,564 153 155,174 13,707 441 23,190 7,107 96,066 469

...................................................................................................................................................................................................................................

Detroit 2,876,559 131,336 41 2,701,383 18,170 284 10,053 14,735 221 336

...................................................................................................... ...................................... ....................................................................................

Indianapolis 151,881 57,765 428 70,073 14.786 261 4,230 4,337

.......................................................................... I .......................................................................................................................................................

Louisville 370,552 39,892 258 313,638 1,220 4,654 9,943 946

.............................................................................................. ........................................................................................................................ I ..........

Parkersburg 30,413 13,439 53 10,081 3,213 10 2,095 1,522

............................................................................................................................................................................................................ ......................

Cincinnati Service Center 96,583 96.425 11 147

Midwest Region:

.............................. .................................................................. ........................... .................................... I ................................................................

Aberdeen 12,876 7,221 4,075 239 1,342

................................................................................... ....... I ............................................................ ..........................................................................

Chicago 3,042,738 710,536 1 '0168 2,206,156 83~807 1,638 32,109 3,766 5 3,654

...................... :

......................................................................................................................................................................... -...............................

Des Moines 95,265 23,483 322 59,098 3,699 160 2,068 6,434

...................................................................................................................................................................................................... ......................... -

Fargo 24,863 7,897

.

49 14,971 836 306 510 295

........................................................................................... I

....................................................

...............................................................................

Helena 19,276 9,246 16 2,923 4,904 108 1,408 671

................................................................. ......................... I .................................................................................................................................... -

Milwaukee 255,526 31,975 594 202,873 9,508 2,745 3,416 4,370 45

......................................................... ................................. .......................................................................................................................................

Omaha 96,796 12,773 116 76,603 2,710 123 1,364 2,988 120

............................................................... ...................................................................................................................................................................

Springfield 117,918 60,053 852 31,793 5,961 3,821 2,912 12,525 1

.... ............................................................................. ........................................................................................................... ....................................

St. Louis 455,549 45,923 785 363,508 7,180 225 34,177 3,073 678

............................................................... ........................... ...................................................................... ................................................................

St. Paul 565,874 80,717 73 459,778 6,494 3,442 13.521 1,655 195

................................................................................................................................ ...................................................... ...........................................

Kansas City Service Center 92,620 88,757 .5 3,707 86 65

Southwest Region:

....................................................................................................................................................................................................................... ...........

Albuquerque 37,277 20,163 81 11,130 4,059 135 991 717

.... .............................................................................................................................. ..............................................................................................

Austin 581,158 1.75,185 4,948 131.319 10,693 1,347 39,972 17.670 24

...........................................................................................................................................

......................... ;

.............. ........................... ...............

Cheyenne 11,278 6,402 15 2,573 63 479 1,747

............. ........ .................................................... .......................................................................................................................... I ............................

Dallas 1,059,141 140,021 94 854,250 25,712 2,095 29,861 5,064 984 1,059

.......... ...... M ........ ..... -I - - - M ........................... M .......... M ................ .......... M . M ................. M M

.... ~ m ... m .....

M ... M ... M ........ M M . . M

Denver 375,462 103,577 5,292 240,739 6,818 2.017 13,172 3,154 694

............ M ............ ............. M ........ ................. M ........................ ..... M ................... M ..... M ................. M ................. ............ M ......

Houston 1,076,272 a5,179 25 892,913 7,220 1,200 43,354 .18.029 27,979 374

.................... ...... M ...... M ........ ............ M ... M ... M .......... M M .... M M ....... .................... M ............................ M ... -:.. M ......... M.... M ...................

Oldahoma City 523,841 94,804 19 401,261 4,338 1,635 4,489 5,665 10,881 749

....................................................................................................................................................................................................................... ..........

Phoenix 252,247 77,012 155,667 4,097 2,072 10,953 2,446

..................................................................................................................................................................................................................................

Salt Lake City 161,282 37,591 21 122,626 794 249

....................................... ...........................................................................................................

.............................................. ................... .. ........

Wichita 102,095 36,101 3,986 54,154 3,238 1,091 2,839 686

.... .............................. ................................................. ................................................................. .................................................................

Austin Service Center 96.112 93,971 356 1,054 9 576 146

..................... ............ .......................................................................... ....................................................................................................................

Ogden Service Center 88,019 87,076 12 931

Western Region:

..................................................................................................................................................................................................................................

Anchorage 70,081 46,631 21,512 112 1,428 399

....................................................................................................................................................................... ..........................................................

Boise 30,857 14,824 12 11,709 1,517 398 1,782 539 77

................................................................................................... ..............................................................................................................................

Honolulu 59,773 19,975 407 33,882 2,313 2,423 773

...................................................................................................................................................................... .............. ...........................................

Laguna Niguel 637.805 272,118 15 273,963 30,032 3,112 41,888 16,660 18

..... ................................................... .......................................................................................................................................................................

Las Vegas 103,921 57,677 . 29,204 8,461 3,733 2,085 2,762

....................................................................................... ......................................................................................... I ...............................................

Los Angeles 1,452,044 221,237 1,151,729 32,103 4,715 32,418 9,643 199

-..................... ............................................................ ................................................... ................................... .............. ............................. ......

Portland 168,602 30,186 859 126,248 4,421 2,123 2,950 1,814 2

................................................................................................................................ ........................................................... .......... .........................

Sacramento 176,287 110,954 548 49.395 6,339 2,281 2,886 3,863 21

....................... ........ ................................................................................... ................................................................................................. ........ .

San Francisco 645,072 99,960 623 518,048 11,538 1,663 9,571 3,647 21

.... ................................................................................................................................... ...... .................................................................................

San Jose 491,890 126,286 510 324,678 25,686 583 3,470 10,586 90

.... .............................................................................. ................................ ........................................................................... ................................

Seattle 155,841 57,844 133 72,975 15,555 856 6,753 1,510 216

............... ................................................................................. .................................... ..........................................................................................

Fresno Service Center 211,517 208,184 76 3,241 16

4
[able 15 -Civil Penalties Assessed and Abated

Dollars in thousands)

Assessments Abatements Net penalties

..................... Number Amount Number ...... ..... Amount -' ' ... Number * ................. Amount.

otal, all civil penalties 33,704,311 12,505,017 3,890,936 3,629,426 29,813,375 8,875,592

.................................................................................................................

ndividual Total 19,594,696 4,018.863 1,373,995 649,290 18,220,700 3,369,573

.................................................................................................................

Delinquency 2,657,118 1,190,600 297,478 237,155 2,359,640 953,445

.................................................................................................................

Estimated tax 5,071,388 893,764 179,468 75,978 4,891,920 817,786

.................................................................................................................

Failure to pay 10,010,874 851.114 692,392 73,698 9,318,482 777,416

.................................................................................................................

Bad check 260,348 7,397 12.811 1,506 247,537 5,892

.................................................................................................................

Fraud 8,971 218,274 1,007 32,093 7,964 186,18,

... .............................................................................................................

Negligence 1,320,870 601,743 172,745 176,811 1,148,125 424,932

...........................................................................................................

Other' 265,127 255,971 18,095 52,049 247,032 203,922

Corporation Tota12 739,536 1,266,892 143,251 426,027 596,285 840,865

.... ........................... .................................................................................

Delinquency 150,033 575,703 27,469 153,145 122,564 422,559

.................. ...............................................................................................

Estimated tax 253,300 225,287 24,929 109,711 228,371 115,576

..................................................................................................................

Failure to pay 321,891 238,557 90,191 83,555 231,700 155,002

.............................................................................................................

Bad check 2,556 177 186 61 2,370 116

..................................................................................................................

Fraud 702 72,630 70 23,367 632 49,264

.... .............................................................................................................

Negligence 4,604 76,538 249 8,477 4,355 68,061

..... ............................................... I ........................ I ...................................

Other 6,450 77,999 157 47,711 6,293 30,288

Employment Tota13 12,160,517 3,906,532 2,071,Boe 1,225,684 10,088,709 2,680,848

.............................. ...................................................................................

Delinquency 2,385,697 794,295 370,095 237,488 2,015,602 556,807

................................................ ................................................................

Failure to pay 5,027,031 381.142 763,839 68,526 4,263,192 312,617

...... I ........................... ............................ ........................................... ......

Federal tax deposits 4,623,556 2,708,598 934,534 917,258 3,689,022 1,791,341

........................................................................ ........................................

Bad check 112,045 5,341 2,321 389 109,724 4,951

............................ .....................................................................................

Fraud 894 7,534 62 174 832 7,360

..... .............. .............................................................................................

Other 11,294 9,622 957 1,849 10,337 7,773

Excise Total" 410,998 205,051 95,271 117,855 314,727 87,196

........................... ............................................................... .... I .................

Delinquency 130,447 - 43,449 16,761 17,528 113,686 25,920

......................................................................................... I ........................

Daily delinquency 45,497 56,010 32,757 46,718 12,740 9,291

... . . . . . ........................................................................................... I ......

Fail ure I o pay 193,494 13,001 3e,565 6,092 154,929 6,910

....................................................... ............................. ............................

Federal tax deposits 30,336 67,204 7,039 44,696 23,297 22,508

.... .............................................................................................................

Bad check 3,746 80 207 6 3.539 74

.................................................... .............................................................

Fraud 1,840 18,698 173 1,542 1,667 17.156

................................................................................... I ..............................

Other 5,638 6,610 769 1,273 4,869 5,337

Estate and Gift Total 18,944 119,019 10,699 113,098 8,245 5,921

..................................................................................................................

Delinquency 7,265 80,534 3,885 80,684 3,380 (150)

.............................................. I .............................................................

Failure to pay 11,032 33,456 6,595 29,480 4,437 3,975

..................................................................................................................

Bad check ...................... 212 ..... .... 120 ......... . 44 ......... 264 168 (144)

................ .... .... ... ...............................

Fraud 5 ........... 7 50 1 2 1.... ... .....4 72 9

. ................................ . . ............. ............ . .......... .

Negligence ....................... 53 .. ... .... 528 ..... .. .. 12 ...... ... 47 ........... 41 480

................ ... .... ... ... .................

Other 377 3,632 162 2,601 215 1,031

All Other Total' 354,342 403,810 148,959 362,448 215,383 41,362

....................... .......................................... ...............................................

Delinquency 189,812 348,453 97,437 313,655 92.375 34,798

........................................ I ........................... ............................................

Estimated tax 55,842 12,077 8,378 5,575 47,464 6,501

....................................................... ..........................................................

Failure to pay 109,817 8,746 36,543 5,104 73,274 3,1~42

..................................................................................................................

Bad check 2,409 77 293 38 2,116 39

........................................................ ................................................

........

Negligence 67 967 6 561 61 406

...................

..................................... .. ............................. .......... .

......

Missing information 6,354 32,945 6,294 37,432 60 (4,488)

.............................. ............................ ............. .......................................

Other 41 546 8 83 33 463

..............................................................................

. ....... . ................ .....

Non-ratum5 415,278 2,584,850 45,952 735,024 369,326 1,849,826

42

Table 16 -Examined Returns and Service Center Correspondence

Contacts Involving Revenue Base Protection'

Number of Amount protected

returns (in thousands of dollars)

Individuals 38,401 265,219

............... .......................................................................................... .......

Fiduciary 280 16,495

..................................................................................................................

C orpo ratio ns

......................................

3

.

.7

.

98

........................... .................

3,59

.

3.39

.

2

.

Estate 1,119 68,799

.............. .............. ....................................................................................

80 I 2.go3 Gift 1

. ...... .......................................... . . . ......................................................

Excise 2,173 77,752

........................................................................... ......................................

Employment 2,405 21,425

............................................... ....... ..........................................................

Windfall 143 122,722

.................................................................................... ..................... .........

Miscellaneous taxable 23 166

Total 48,522

Table 17 - Examined Returns and Service Center Correspondence

Contacts Resulting in Refunds

Total

Table 18 -Information Reporting Program

(In millions)

4,178,874

Number of Amount recommended

returns (in thousands of dollars)

Individuals 77,621 464,579

................................................. I ................................................................

Fiduciary 487 15,011

.................................................................................................................

Corporations 6,249 1.392,119

..................................................................................................................

Estate 2,680 159,415

..................................................................................................................

Gift 108 3.379

... - : .............................................................................................................

Excise 3,677 52,821

... .................... ....................................................................................... .

Employment 1,197 26,193

............................................................................. .................. ...................

Windfall 184 42,652

................................................................................................................

Miscellaneous taxable 99 14.861.

92,302 2,171,031

Intormation returns received

.......................................................................... .........

Otherthan paper 953

.. ............. .. ........................ .............................................

.............

Paper 82

................................. : ................................................................ .............

Total 1,035.

' ~ ............................. *** ......... ....... ...... * ...... ..... ....

Contacts

... ............................................................. .................................................

Underreporter program 3.771

... ...............................................................................................................

1 RP nonfiler 1.528

... ..........

...................................................................................................

Total 5.299

* " ' * ........... ...... * .......... ......... ........... * ......... *

...........................

Additional tax, penalties, Interest assessed

... ...............................................................................................................

Underreporter program $1,799

1 RP noryfiler .................... .. *'*'* ........ $2,460

--Total .......... ................. ............ ..... ........ ........... ...... ... ........ $4.259

.

able 21 -Internal Audit

lumber of audit reports issued 101 .................................................................................................................

lational audits 29 ... ........................................................................ I ...................................

;egional audits 14 .................................................................................... ...........................

Ingle office audits ......... I 58 ......................................................................................................

taff time allocation

................................................................. ............................................ 1.

rogram reviews

.............................................................................................................. 35.1%-

Istalration reviews 23.7% ................................................................................................................

Itegrity, program 13.1% ................................................................................................................

ystems development reviews 11.5% ................................................................................................................

ispection systems modernization

.............................................. 8.3% .............................. ..................................

inancial reviews 6.9% ................................................................................................................

omputer assistance to management 1.4% ................................................................................................................

reas ury IG projects

. . .. . . . . . . . ........ .02% ......................... ................................

Potential monetary benefits added from Internal Audit recommendations $ 56,080,000 ................................................................................................................

Total monetary benefits realized from Internal Audit recommendations $117:626:000

Table 24 Determination Letters Issued an Employee Benefit Plans

Table 22 -Internal Security Activities Employee/Non-Employee Violations

Cases Initiated 3,196 5,828

.................................. ...............................................................................

Theft/embezzlement 62 8 0 2

.................................................................................................................

Bribery 37 2 1 ............ 3

................................. ....... ............................

1 False/fraud. statement 33 9 0 .......... ..........

.................................................................. ...... .................

Assault 23 5 2 8

..................................................................................................................

Impersonation 23 4 0

................. ................................................

Conspiracy 12 0 1 ... 3

..............................

............ ............ ..................

.................................

Narcotics 12 0 0 0

.........................................................

........................... ............................

Mail fraud 12 0 0 0 ..................................................................................................................

Harassment ......................................... .....................................................................

0 Extort on 4 0 0 .............

.................................................................. ...................................

Disclosure 2 0 0

....................................

Other 19 5 2 2

Totals 244 33 7 23 3,196 5,828

Table 23 - Employee Plans and Exempt Organizations Tax Rulings

and Technical Advice (Closings)

Subject Total

Total 4,061

Taxpayers Field requests

requests for for technical

tax rulings advice

3,886 175

Actuarial matters 198 186 12

... ...............................................................................................................

Exempt organizations 3,527 3,406 121

... ...............................................................................................................

Employee plans 336 294 42

Total Total

Stock Money Target Profit defined defined

Letters Issued bonus purchase benefit sharing 401 (k) ESOP c

.

ontrib6tion benefit Total

Initial qualification:

............................. I ................................................................................... I ..... ........................................................................... ................................

Qualified 82 2.139 6 10,813 1,032 9 14,081 264 14,345 .... ............................................................................................................

......

.........

............................

Participating Employees' 11,686 161,872 708 496,967

.......

41

.

4,

.

244

.................

1

.

6

.

24

..............

1

.

0

.

87,1

.

0

.

1

...

30

.

4

.

563 1,391,664

................................................................................................................

. ...... ............................................................................................................ Not Qualified 0 0 0 5

9

Amendment

..................................................................................................... ........... ...... ............................................................................................................

Qualified 187 13,155 18 31,957 2,516 32 47,865 1,044 48,909 ...................................... ......................................................................... ...... ............................................................................................................

...

Pa

.

r

.

ticipati

.

ng

.

E

.

m

.

pl

.

oye

.

e

.

s

.

1

..........

1

.

3

.

5.02

.

0

..........

3

.

8

.

9,523 1,311 1,271,292 1,457,338 39,893 3,294,377 1,711,661 5,006,038 .. ...... .. . . . ... .................................. . ...... ............... ............................................................................................

Not Qualified 0 0 3 6

Terminations:

................................................................................................................

Qualified 27 3,400 152 7,097

..... ...............

0

............ ........

-

i ...............

1

.

0,6

.

7

.

6

.................

8,

.

71

.

4

1 ...............

1

.

9,39

.

0

................................................................................................................ . ...... ............................. ..............................................................................

Participating Employees' 3,315 54,433 1,937 467,230 0 526,915 433,961 960,876

................................................................................................................ .

Not Qualified 0 0 1

............... .....................

.

....................... ...................... ....................

Total

................................................................................................................. ...... ........................................................ .......................................... ......

0

.

ualifi

.

ed

.................................

296 18,694 176 49,867 3.548 - 41 72,622 10,022 82,644 . .... .. ................................................................ ........................ ...............................................................................

Not Qualified 0 1 1 3 1 21 7 28

44
Table 25 - Exempt Organizations and Other Entities Listed an Exempt

Organizations and Business Master File

Section 501(c):

1991 -1992

Table 26 - Exempt Organizations Applications (Disposals)

Approved Denied Other' Total

Section 501(c):

. . . . . .. .... . . . . . . . .. . . .. . ... . . . . .. . . .... . ....... - I .......... ................ ............... ... .

of Cc n gress 0 0 0 0 1 Corpora orga nized under act tion

(1) Corporation organized under act of Congress 9 9

(2) Titleholding corps 6,408 6,529

(3) Religious, charitable, etc 516,5541 546,1001

(4) Social welfare 142,473 142,673

(5) Labor, agriculture organizations 72,009 71,012

(6) Business leagues 68,442 70.871

(7) Social and recreation clubs 63,922 64,681

(8) Fraternal beneficiary societies 98,840 93,544

(9) Voluntary employees' beneficiary associations 14,708 14,986

(10) Domestic fraternal beneficiary societies 18,360 21,415

(11) Teachers' retirement funds 10 10

(1 2) Benevolent life insurance assns. 55,984 6,103

(13) Cemetery companies 8,781 -9,025

.

1

.

4)

..

St

.

at

.a..

c

.

ha

.

rte

.

red

..

c

.

r

.

e

.

dit

.

u

.

ni

.

on

.

s

.......................................

6.

.

21

.

9

.........................

5.

.

55

.

9

(15) Mutual insurance companies 1,147 1,157

(16) Corps. to finance crop operation 20 23

(17) Supplemental unemployment benefit trusts 644 625

(18) Employee funded pension trusts 8 8

(19) War veterans' organizations 27,962 28,096

(20) Legal service organizations 206 217

. 21 Blac k lu ng trusts 23 23

.............................................. ........ ............ .. ............ . . . . . . . .

22 Multi

.a.

m

.

ploy

.

e

.

r

..

p

.a.

nsio

.

n

..

p

.

I

.

a

.

ns

...........................................

0

..............................

0

.. ..... . .... .... .

(23) Veterans associations founded prior to 1880 2 2

(24)Trusts described in section 4049 of ERISA 0 1

(25) Holding companies for pensions etc. 181 290

......... * ............ *- ..... * .... * ........... ........ -

....................................................

(2) Titleholding corps 193 0 77 270

'** - ' -... ... ...

................................

' *

......... . ...... . .. . ...

.

. .............

(3) Religious, charitable, etc 36,108 730 10,334 47,172

. . . .................................... . . . ............ ............. . .......... . .

... . . 2 1 77 27 663 2 867 (4) Social wellare

....... * ..... * .............. * * " - * -- * ....... * ........

....................................................

(5) Labor, agriculture organizations 430 4 68 502

...............................................................................................................

(6) Business leagues 2,278 60 405 2,743

... * ................... ....... . .................. ................. (7) Social and recreation clubs 1.168 36 478 1,682

................................................................................................................

(8) Fraternal beneficiary societies 17 4 21 42

' * ................... * ...... - " * ... *

.............. .................... ......................................

(9) Voluntary employees' beneficiary associations 796 2 216 1,014

....... .... * ..................... ................... * ...... ... * , (10) Domestic fraternal beneficiary societies 29 2 39 70

............... * * '' -.... * ... - ......... .... .. ....

.......................................

......

(11) Teachers' retirement funds 0 0 0 0

.. .................. * ...... - * .... * ............. * .................... ....... (1 2) Benevolent life insurance assns. 113 5 66 184

............ ... *'*"*** ...... -* ..... * ................. ....... (13) Cemetery companies 271 1 119 291

......... ................................................................ I .....................................

(1 4) State chartered credit unions 2 0 0 2

(15) Mutual insurance companies 7 0 5 12

(16) Corps. to finance crop operation 01 0 0 0

.................... *- ............. ....... ... -* ........... - (17) Supplemental unemployment benefit trusts 0 a 2 2

........... ..... *** .... * ... * ....... * ......... - ........... * ................. * ........ .......... (18) Employee funded pension trusts 0 0 0 0

, * .... * ....... ....... - - * ... *-... **** ................ * ......... * ................ * ........... **''*' (119) War veterans' organizations 155 0 24 179

.... -- ........... * * .............

............................................... .............. ............

(20) Legal service organizations ........................ 20 1 3 24

I .............. . . .......................

(21) Black lung trusts 0 0 0 0

......................................................................................

..............

0 0 (22) Multiemployer pension plans 0 0 .

................................................................. ..

...............

(23) Veterans associations founded priorto 1880 0 0 0 0

.............................................. ................................................................

(24) Trusts described in section 4049 of ERISA 1 0 0 1

'' * " * * .............. * ......... * .... - .. .................................... ...... ........ (25) Holdinq companies for pensions etc. 0 0 1

501(d) Religious and apostolic organizations 5 0 2 7

501(d) Religious and apostolic organizations 93 92 501(e) Cooperative hospital service organizations 0 0 0 0

501(e) Cooperative hospital service organizations 72 68 i i i ti f ti

501(f) Cooperative service organizations of operating

1 1

() oopera ve serv ce organ za o p g

educational organizations 0 a

educatona organzatons 521 Farmers' cooperatives 16 0 13 29

521 Farmers' cooperatives _ 2,129 2,086 Nonexempt charitable trusts 2 0 2 4

Sub-total exempt orginizations (ED) 1,055,545 1.085,206

Taxable farmers' cooperatives 3,219 3,161

... ............................................................. ........... ...........................

Nonexempt charitable trusts2 48,900 52,021

Total Ego: and other entities 1,107,664 1,140,388

National ..........Office * -* ... ** .......... ..................... ... ....... rulings and determinations letters - - - 3,406

Total E0s; and other entities 43,788 872 12,438 60,504
Table 27 -Intemal Revenue Collections, Costs, Employees and U.S. Population

Average positions realized

Average positions realized

Cost of ...........................................................

collecting Population Tax per National

Fiscal Year Operating cost (1) Collections (2) $100(3) (thousands) (4) capita (5) Total (6) Office (7) Field (8)

1960 363,735,359 91.774,802,823 0.40 180,671 507.96 51,047 2,910 48,137

1961 413,295,238 94,401,086,398 0.44 183,691 513.91 53,206 3,042 50,164

1962 - 450.080,420 99,440,839,245 0.45 186,538 533.09 56,481 3,401 53.080

1963 500,804,314 105,925,395,281 0.47 189,242 559.74 59,711 3,657 56,054

1964 549,692,131 112,260,257,115 0.49 191,889 585.03 61,059 3,839 57,220

.................................................................................................................... ...............................................................................................................

1965 597,387,471 114,434,633,721 0.52 194,303 588.95 62,098 3,881 58.217

1966 624,861,929 128;879,961,342 0.48 196,560 655.68 63,508 3,982 59,526

1967 667,080,295 148,374,814,552 0.45 198,712 746.68 65,946 3,894 62,052

1968 699,190,304 153,363,837,665 0.46 200,706 765.48 67,574 3,967 63,607

1969 758,785,475 187,919,559,668 0.40 202,677 927.19 66,064 3.862 62,202

...................................................................................................................................................................................................................................

1970 886,159,162 195,722,096,497 0.45 204,878 955.31 68,683 4,103 64,580

1971 981,065,297 191,647,198.13

'

8 0.51 207.053 925.63 68,972 4,358 64,614

1972 1.127,390,411 209,855,736,878 0.54 208,846 1,004.83 68,549 4,134 64,415

1973 1,162,009,945 237:787,204:058 0.49 210,410 Ij30.11 74,170 4,505 69,665

1974 1,312,894,661 268,952,253,663 0.49 211,901 1,269.24 78,921 4,310 74,611

1975 1,584,711,486 293,822,725,772 0.54 213,559 1,375.84 82,339 4,531 77,808

1976 1,667,311,689 302,519,791,922 0.56 215,142 1,406.14 84,264 4,732 79,532

1977 1,790,588,738 358,139,416,730 0.50 217,329 1.647.91 83,743 4,994 78,749

1978 1,962,129,287 399,776,389.362 0.49 219,033 1,826.61 85,329 4,919 80,410

1979 2,116,166,276 460,412,185,013 0.46 220,999 2,083.32 86,168 4,978 81,190

1980 2,280,838,622 519,375,273,361 0.44 228,2312 2,275.66 ' 87,464 5,114 82,350

1981 2,465,468,704 606,799,120,630 0.41 230,613 2

2,631.24 286,156 5,110 81,046

1982 2,626,338,036 632,240,505,595 0.42 232,962 2

2,713.922 82,857 5,098 77,759

1983 2,968,525,840 627,246,792,581 0.47 235,225 2

2,666.58 ' 83,605 34,357 3

79,248

1984 3,279,067,495 680,475,229.453 0.48 237,454 2

2,865.71 287.635 35,327 ' 82,308

1985 3,600,952,523 742,871,541,283 0.48 239,714 2

3

'098.992 92,254 5,454 86,800

1986 3,841,983,050 782,251,812,225 0.49 241,995 23,232.51 295,880 5,361 90,519

1987 4,365.816,254' 886,290,589,996 0.49 244,344 23,627.22 2102,188 6,253 95,935

i 988 5,069,376,692 935,106,594,000 0.54 ')AA _qgq 2 1 7Q9 17 2 1 14,R73 6;934 107fflSl

1989 5,198,546,063' 1,013,322,133,000 0.51 249,412' 4.062.84 114,758 7,895 106.863

1990 5,440,417,630' 1,056,365,651,631 0.52 250.205 ' 4,222.00 ' 111,858 7,459 104,399

1991 6,097,627,226 1,086,851,401,315 0.56 253,432 24,288.53 2

115,628 8,286 107,342

1992 6,536,336,443 1,120,799,558,292 0.58 256,167 4,375.27 116,673 9,333 107,340

46
Table 28 -Internal Revenue Service Costs by Activity

(In thousands of dollars)

Total Pars. Comp. and Benefits

...............

Other

........................ .............. . .........................

1991

..............

1992

....................

1991

....

1992 1991 1992

Total Obligations, Apprapriatrions and Reimbursements 6,180,910 6,652,835

.. ...........

4,423,286

...........................

4,819.826

....................... ..

1,757,624

..............................

1,833,009

..............

.................................................................... .............

Obligations against appropropriated funds'

..........................

6,097,627

........ .

6,536,336 4,375,289 4,760,496 1,722,338 1.775,840

Administration and Management (Salaries & Expenses)

Total 144,822 141,130

. ....................

101,772

.............. ............

110,4114

..........................

43,050

..............................

30,726

.............. ..................................................................................

Executive Direction

.........................

13,551

. .

13,112

.................

10,096

..........................

10,682

...........................

3,455

..............................

2,430

..............

..................................................................................

Management Services

...

.........................

42,149

.........................

......

31,868

.......................

24,703

..........................

20,973

...........................

17,446

..............................

10,895

..............

.................................................... ..........................

Internal Audit and Internal Security 89,122 96,150 66,973 78,749 22,149 17,401

Processing Tax Returns and Assistance (Processing Tax Returns)

Total 1,617,264 1,560,706

....................

1,078,889

...........................

1,174,954

...........................

538,375

..............................

485,752

..............

..................................................................................

Returns Processing and Revenue Accounting

.........................

1,227,660

................

..

1,265,712

......................

798,280

...........................

853,733

....... ...................

429,380

..............................

411,979

.............

..................................................................................

Statistics of Income

.........

21,554

. . .

25,088 ......................

16,708

...........................

19,871

......... ...... -.

4,846 1 ....... .............. ..........

5,217

.............

......................................... :........................................

Taxpayer Service

................... . ..

368,050 369,906 263,901 301,350 104,149 $68,556

Tax Law Enforcement (Eximinlation & Appeals; Investigation, Collection & Taxpayer Service)

Total 3,410,5113 3,577,666 2,820,118

..............

3,027,557

..........................

590,455

...............................

550,109

.............

................. .......................... : ....................................

Tax Fraud and Financial Investigations

..........................

275,886

......................

309,292

.............

232,691

......................

266,783

..........................

43,195

...............................

42,509

.............

........................................................... .....................

Examination

.................. I .......

1,532,267

......................

1,605,490

.....

1,297,084

..............

1,378,442

..........................

235,183

...............................

227,048

.............

........................................... .....................................

Appeals and Tax Litigation

..........................

344,595

......................

374,041

....

.............

311,327

........... I ...............

343,601

..........................

33,268

.................... ..... ......

30.440

.............

.................................................................................

Employee Plans and Exempt Organizations ,

..........................

132,291

............... -

140,918 114,387

.......................

124,576

..........................

17,904

..............................

16,342

..............

.......................... ............... ......................................

International

..........................

56,203

............ .........

57,559

...

41,789

...........

45,319

..........................

14,414

..............................

12,240

..............

....................................... -.......................................

Collection

..........................

874,491

......................

. 921,731

................

706,464

...........

767,313

..........................

168,027

..............................

154,418

.........

................................................................. ...............

Document Matching

....... ..................

194,850

......................

168,635

...... .........

116,376 101,523 78,474 67,112

Information Systems

Total 924,958 1,156,834

...........

374,510

....... .........

447,581

..........................

550,"B

..............................

709,253

..............

.... ............................................................................

Processing and Services

................. .......

526,252

............

637,333

.................

... ............... 226,396 ........... ....... .................. 247,385 .............................. 299,856 .............. 389,948

............................................................................ ....

Compliance and Enforcement .

.........................

125,169

..

118,035

...............

22,736

.......... ...............

14,798 ...........................

102,433

..............................

103,237

..............

.... ............. ..............................................................

Program Support

.........................

75,321

........

104,675 38,885 68,249 36,436 36,42E

Tax Systems Modernization 198,216 296,791 86,493 117,149 111,723 179,642

Reimbursable Obligations, Total 83,283 116,499 47,997 59,330 35,286 57,16S

4
Table 29 -Internal Revenue Service Costs by Office'

(In thousands of dollars)

Personnel

Intemal Revenue Office, Total Compensation Travel Equipment Other

District or Region (1) (2) (3) (4) (5)

A. Total Internal Revenue Service 6,652,835 4,819,825' 143,326 199,280' 1,490,403 4

National Office 1,463,184 580,011 36,509 136,822 709,842

..........Ai ......................................................................................................

North [antic .... .................................................................. .........................................

Mid-Atlantic 545,300 436,824 9,063 7,418 91,995 .... ...................................... . ........................... ...................................

Southeast ..............................................................................................................

entral 478,863 384,677 11,316 4,206 78,664 ...........................................................................................................

west ..............................................................................................................

outhwest 805,034 673,037 15,990 11,078 104,929 ..................................................................................................................

Western ..........................................................................................................

gional Appeals 154,256 143,354 3,055 2,799 5,048 .... .............................................................................................................

Regional Counsel 126,058 111,086 4,269 4,408 6,295

- * * ...... *

............... ...............................................................................

ional Inspection ................................................................. ............ ........ 66 ............ .

Martinsburg Computing Center 46,274 29,653 490 2,1 13,945 .... .............................................................................................................

Detroit Computing Center 73,750 54,260 1,117 2,480 15,893

B. Regional Commissioners Office 528,751 129,771 20,110 11,973 366,897

(excluding District Directors

Offices and Service Centers)

North Atlantic 35,563 20,911 1,764 1,460 11,428 ...........................................................................................................

................................... -Atlantic .................................................... 74.911 16,331 1,434 ...... 1,732 ...... 55.414 .......

outheast 83,355 20,299 4,690 1,957 56,409 .......................... .......................................................................................

Central 73,127 15,835 3,705 1,226 52,361

..................................................................................................................

Midwest 77,109 17,796 2,968 1,000 55,345 ...S........................................................................... ...................................

outhwe s! ........ ... . ............................... . . .......... . . .... . . ...... . . . Western 104,020 18,357 .2., .9.6i 983 81,*71 2

C. District Directors Offices

and Service Centers 4,185,337 3,707,228 73,535 36,049 368,525

North Atlantic 737,009 589,019 11,047 5,457 131,486 ................................................................................. .......... ..............

Albany 24.291 19,157 764 ii6 4,245 .................................................................................................................

Augusta 11,903 9,708 456 156 1,583 .................................................................. I ..... ..... ...................................

Boston ........iiy .......................................................................................................

Broo n 100,256 73,397 1,327 769 24,763 ....... .................................................................................... I .... ...........

lu-10 46,3885 38,278 1,2181 300 '65- ....... ... ....................................... -- ...........................................................

Burlington ...

43,11 2 1 3 5 045 1 1 42 27 2 .........................................................................................................

a attan 138,075 108,908 1,771 760 26,636 .... .................................................................. ................. ............. ...

Portsmouth 13,042 10

.

637 ......... 498 ............ 196 ....... 1:il 1 .... ............................................ .................... ..... .... .......

Providence .... ......................................................................... I ... ... ...........................

Boston ACS 2,854 2,854 0 0 0 .... .............................................................................................................

Buffalo ACS 2,856 2,855 1 0 0 .................................................................................. ........ I ........ . .. .....

Manhattan AGS 4,686 4,681 0 0 ..................................................................................................................

North Atlantic Region

centralized training 558 0 524 0 34

A

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61

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..........

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.

99

.............

8

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..........

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.............

96

.

5 .. ....2'5', 2'2-6'

Mid-Atiaritic 470,389 420,493 7,629 5,686 36,581 ..................................................................................................................

Baltimore 69,900 63

,

620 1,351 1,068 3,861 ............. I ................................ ..................................................................

Newark 80,012 73,255 1,687 806 4,264 .... ........................ ................... ................................................................

Philadelphia .... .............................................................................................................

Pittsburgh 35,786 32,303 843 316 2,324 . .................................. .................................... ... ...............................

chmond

Wilmington

Baltimore ACS Site

772,572 609,930 12,811 6.917 142.914

id kii .

1 , 626,972 16978 7,835 110,141

541,226 437,090 11,355 4,925 87,856

809,167 668,469 16,132 5,643 118,923

75,225 64,463 4,241 2,563 3,958

.

80,6 6 6 20242 2581 3,6 1 5 5 4,228

76,645 61,483 1,687 480 12,995

6,556 5,297 333 42 884

12,470 10,207 440 195 1,628

63,734 57,482 981 1,460 3,811

51,467 45,766 1,620 482 3,599

.......... 9,065 8,127........... 241 . . .141.. .........5. ~6 .................................................................... ........................... .................

Forms Distribution Center 8,049 6,897 28 283 841 .... .............................................................................................................

5,437 5

,

289 19 1 128 .......................................................................... . _- .............

New ark ACS Site 3,480 3,29 3 8 5 ... .. ...1 74 ......... . _ ... . . . ......................... . ............ . . . ............. . . .

Philadelphia ACS. Site 4,203 3,936 ....... 4 ............. 25 .... ... 238

-Mi~-Atlanbc: .............. Region......... centralized. training . .................... 431 ........... 0 410- - 0 21

PhHadeI phia Se

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.........

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2

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422

...........

4

.

36

...........

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. Oii.......

1

.

6,42

.

3

.

.... ................................................................... ......................................

Cooperative Administrative

Support Unit, Baltimore

48

456 103 1 11 341

Personnel

Internal Revenue Office, Total Compensation Travel Equipment Other

District or Region (1) (2) (3) (4) (5)

Southeast 678,571 606,673 12,288 5,878 53,732 .................................................................................................

Atlanta 85,914 77,073 2,440 1.313 5,088 ..................................................................................................................

Birmingham 25,242 22,895 762 228 1,357 .............................................................................................................. li~6

Columbia 18,297 16,624 491 337 ..................................................................................................................

Fort Lauderdale District 67,867 61,648 1,502 801 3.916 ..................................................................................................................

Greensboro 41,150 37,158 1,350 712 1,930 ........................ ......................................................................................

Jackson 16,064 14,721 485 ............................. 77 7 ............................................................................. ......

Jacksonville 68,663 63,130 1,502 318 3,713

. .......................................................................................................... ..

Little Rock 17,149 15,554 524 308 763 ............ _................................................. .............................................

Nashville 46,331 42,359 1,080 182 2.710 ..................................................................................................................

New Orleans 35,726 32,851 839 57 1,979

..................................................................................................................

Southeast Region centralized training 879 0 767 0 112 ..................................................................................................

*

..............

Atlanta Service Center 121,622 108,663 292 745 11,922

............................................................................................................... . Memphis Service Center 116,822 97,278 223 730 18,591

.... ...................... ......................................................................................

Charlotte.Regional Development Center 1,695 1,569 ...........

31

..............

7.0 ...........

2.5

............ .........................................................

Atlanta ACS Site 3,922 3,922 0 0 a ..... ................................................................................ ...........................

Jacksonville ACS Site 6,015 6,015 0 0 0

..........

.......................................................................................................

Nashville ACS Site 5,213 5,213 0 0 0

Central 405,735 368,842 7,611 2,980 26,303

* ... ... . ......... Cincinnati 55,658 50.781 1,218 235 3,424 6la~ . ................................ . .

elan d 51 .7 55 4 7,730 1 27 1 200 2,554

.... ......................................................................... ...............................

Detroit 75,435 69,922 1

,

786 173 3,ii~ ..................................................................................................................

Indianapolis 44,187 40,287 938 348 2,614

Lo

.

ui

.

s

.

ville

......

23,4 1 1 2 1 491 708 6 1 1 1 51

arkersb u rg 1 2,399 1 1 082 444 16 1 71 2

... Cooparaiiv'e' Administrative . .. . . .. . ....... .. .............. ................. .................................................

Support Unit, Indianapolis ....... .. 0 ........ .. 0 .... ...... 0 0 0

................................

............ .......

. ........

Cooperative Administrative

Support Unit, Cleveland 198 72 2 10 114

... C..............................................................................................................

ooperative Administrative

Support Unit, Cincinnati ...................876 ............. 420 .......................................... 3 0 453

...j

......................... .... .....

reasury Complaints Processing Center ..890 .. .......... 797 90 0

.............................................. ....

Detroit ACS Site ........ 0 . u

...

6iev

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la

.

n

.

d

.

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....................... ............ ............ 6 ............. -6 .............

6 ...

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.

S S

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ite

... ...............

2 ........ 936 * ...... 2,936.............. 6 ....... .......d* ..... * ......6

...C

................. .......................................................

entral Region centralized training 580 0 537 0

....................

.

j1,666 I

.

1

.

7,

.

57

.

9

...........

6i~

........ .

1

.

7k ... .. ii,*6ii incinnati Service Center

Midwest 464,117 419,294 8,387 3,925 32,511 ........................................................... ......................................................

Aberdeen 5,659 4,962 277 142 278

................... I .... .. .................... .. . ......... -1*

.............................. ........

Chicago 108,349 101.397 ........1.,823 ............529 4,600 ****' ............................................... ...................... ..... ..................

Des Moines 20,094 18.022 594 215 1,263

......................... I .......................................................................................

*

... Fa,rg.o. ................................

7,20.4 ............6.,.049...........2.80.............17.9 ...... ... 6.9.6.

Helena 8,286 7,209 353 41 .. ....... 683

............................................................................................. ....

Milwaukee 34.426 31,598 780 182 ........1,866

...

0

.

maha....... * .. .... .. ............ ''1*6,93'8' ...... 1'5,'49'2...........3,69

.............

24

.

7

.... .............................................................................................................

St. Louis 48,975 45,418 1,075 109 2,373

..................................................................................................................

St. Paul 43,963 - 40,249 986 356 2,372

...S .............. I ...............................................................................................

pringfield 17,946 16.350 558 128 910

................................................................................................................ .

Forms Distribution Center 6,153 5,562 12 17 562

....... ..........................................................................................................

Midwest Region centralized training 715 .............. . 0 ...... .599... .................................................... ..... ......... 0 ..... .. .116

Kansas City Service Center 131,228 116,484 371 1,533 ......1.2,840

.................................................................................................... ....

Treasury Complaints Processing Center 2 .............................................938 ............. 7 1 .......... 1 8 ... ..........5 .. ......1.0.4.

National Forensic Laboratory 2,838 2,157 159 230 292

..................................................................................................................

Cooperative Administrative

Support Unit, Chicago 3,383 812 6 12 2,553

.........................................................

. ........ .......... .......... . . ... ............S

h cago ACS ite 3,997 3,890 . 7 ............. 0 I 00 ...

S

.

I.

.

Lou

.

is

.

A

.

CS

. .

Si

.

te

.............

3,0

.

2

.

5

............

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.

94

.

2

............

10

.

0

..........

73

able 31 -Chief Counsel Workload by Function

Pending Pending Pending Pending

unction Type of Case Oct. 1, 1991 Receivedi Closed Sept. 30,1992 Function Type of Case Oct. 1, 1991 Received' Closed Sept. 30, 1992

4ipeaJ32 Nondocketed: Agreed Unagreed

...... ..........................................................................................

Regular work (excl. TEFRA) 33,221 41,829 38,183 4,323 32,544

. . . ............ . . .......... . ..... - . . ......... . ........ . ... . . . .. . .... ... . . .. ...

S he Iters exc1. TE F RA) 3 047 1 92 1 .8 29 I 5 1 395 Tax ................. ...............................................................................

TEFRA regular work 711 381 570 6 516

................................. I ...............................................................

TEFRA tax shelters 942 -60 595 9 278

Docketed:

'riminal

ral

Disclosure

Litigation

Domestic

Employee

Benefits &

Exempt

Organizations

.. ..............................................................................................

A r eg uIa 2 72 189 14 235 ii~R rwork .......... ......... ....... . . .

. . . . . . ..................... . . . . ......... .

Tax shelters (excl. TEFRA) 5,461 2,443 4,371 489 3,044

-- * - * - - ' * ,- ........--" -........

Regular work (excl. TEFRA) 15.201 23.947 20,767 2,438 15,943

.................................................................................................

2 1 43 1 20 747 46 1 470 TEFRA tax shelters .................................................................................................

Total 50,998 69,018 67,251 7,340 55,425

Requests for grand jury 6,412 3,381 2,367 7,426

.. ..............................................................................................

Administrative

0 1,144 1,075 69

...................................

..........

*

Grand .................................................. jury evaluations

Forfeiture cases 857 1,508 888 1,477

2,283 861 924 2,220

.............................................................

..........

. . _ ...... . . . .... ......

. . . - - . .............................. ......

.

......... * ..... N ationat Off ice 0 1 0 738 1 0 .738 0

... ..................................................................

..........................

Total 9,552 17,632 15,992 11,192

Disclosure opinions 142 392 428 106

...........................................

........................

' ' '* ... ........ ' - ' *

FOIA litigation 128 69 55 142

.. ........ .....................................................................................

1 0 34 41 3

....................................................

........ .......... - .......

P rivacy a ct o t h er

6 2,635 FOIA, other 1 "7 9 7 3 ,02

. . . . . . . . . .......................... . ........... ........... .......................

Privacy act litigation . . ......... 14........... 5...........14 ......... ........... 5

. . . . . . . . . . . . . .

Se ct io n s 721 7 a n d 7431 Htigation 69 43 31 81

.. ....................................................................................... ......

Appellate litigation 34 34 25 43

.................................................................................

...............

Coordinations 11 ....... . . 34 35 10

. . ................................... . . ....... . .. ............... . . TotaI 2 205 4 475 3.6 55 . 3, 025

Technical advice

Request for rulings 777 1,852 1,972........ ............657

.............

............ .......... ......... . . ... .. ... ... . . . . .

130 297 3 31 96

Revenue rulings and

revenue procedures 600 258 236 622

...........

. . ..............

..... ........... ****

...........................

Changes in accounting methods 3.495 6,171 5,861

Congressional correspondence

3,805

159 1,124 1,180 103

2 9 1 8 0 2,91 8 0

.... .... ... .

..................

. . . . ....................... . . . ............ ....... . . .... . .

Eam 1ngs an d profits

determinations3

Changes in accounting periods

Technical and general

correspondence

Reviews of field determinations

Regulations projects

Legislative projects

Assistance outside technical

Rulings disclosure

Other

64 696 722 38

76 413 453 36

0 0 0 0

474 140 273 341

10 151 29 132

244 1,987 2,111 120

89 1,012 857 244

44 183 37 190

Total 9,080 14,284 16,980 6,384

Request for rulings 111 488 455 144

... ................................................. ...........................................

Technical advice 20 50 52 18

.................................................................................................

Revenue rulings and revenue

procedures 42 14 13 43

....................................................

.................. ............... .........

News releases 2 3 3 2

......................................... ..................

*

.. ........

*

.................. . ...

Congressional correspondence 61 518 528 51 ..............................................

.............. ..

. . . . .. . . . . . .....

Technical an d g eneraI

correspondence 89 410 421 78

Regulations projects 72 12 11 73

i-m- playeeLegis.

lativelp.ro.je.c.t.s .........................

7............

5............2 .....................

1

.

0

Benefits & Assistance outside technical 161 697 647 211

Exempt ............................................

....................................................

Organizations, Other 19 37 ......... 24 ...... .............. 32

........ .............................. .......................

Continued Total 584 2,234 2,156 662

98 193 197 94 General Ad.verse. ac

.

tio

.

n

.

s .......................................... I ................................... .. ..... .. ..

Le

gal

S.rvices

General

Litigation

International

Tax

Litigation5

(Dollars in

rnillions)

Grievance arbitration 193 449 239 403

.. ..............................................................................................

Discrimination 260 390 334 316

.. ..................................... ........................................................

Unfair labor practice 64 124 ........ 110 78

............................................................. ............................

Contracts 102 908 937 73

.................................................................................................

Forfeitures 12 19 ......... 31 0

............................................................. ..... ...............

Bivens 157 168 210 115

.............................................................. ...................................

Claims collections 270 99 198 171

............................ .....................................................................

Labor or personnel 82 565 482 165

.................................................................................................

50 273 239 84

.

To

.

r

.

t

.

clai

.

m.s ................................ ....................................... ...........

134 350 384 100

Expert witness ........

............................................................. ............... ............

Miscellaneous other 324 3,817 3,766 375

........................................... .....................................................

Total 1,746 7,355 7,127 1,974

C.h.apte.r.7. ba.nkru.p.t.cies ........ ......

2.,.6.60.......

42.2.89.......3.9.1.7.. ~ ...............

3,.03.2

Chapter 11 bankruptcies 6,606 7,310 7,308 6,608

..................................... I ...........................................................

Chapter 13 bankruptcies 6,705 12,700 11,783 7,622

................................................................. ...............................

Collection suits (U.S. plaintiff) 2,328 3,407 3,528 2.207....................... .. ........................ ............................. ................

2,179 Su.its.agai.n.st.U.S ...................... 2.,.2.1.

3........

I

.

5

.

97.......1.,6.3.1 ...... ................

. .. .. . .. ....

Summons enforcement 4,712 6,156 8,017 2,851

..

..............................................................................................

Advisory opinions 1,898 10,598 10,239 2,257

.................................................................................................

785 Miscellaneo.us..................... ......

7.28........

1.,.2.16.......1,1~59 ........................

Appeals cases 314 398 358 354 .....................................

O.Itie.r.c.ase. .............. * ...................... * ..... ........ S

.

4

................... I ...........

1.4..........

1.88......... 1.72 ...... .............. 3.0.

Total 28,178 47,859 48,112 27,925

Competent authority 13 9 ......... 12 10

.........

* .... * ..... * " * ............... * ....... - - - ......

..... I .....................

Private letter rulings 122 ....1.32......... 1.13 141.

. ......................... ....... .............................................

Regulat ons 100 19 Zb 94

...........

.....................................................................................

Revenue rulings ...

1.03...........30...........

36 .....................9.7.

.. .. .. ... .

Te hnica I advice rn e moranda 17 22 19 20

........................... .............................. * ........ - * ... * * ...... * * ..... *

... - non-ISP 188 341 353 176 Technical assistance ...................

..............................................................................

Litigating tax 98 . 60 33 .........1.2.5.

....................................................................................

3 46 41 8 rea ........... ............. .......... ............................................................ T ties

6 69 9

.. ..........

.................................................................................

r

,

iminal C tax function

. . . .......... . ......... . ....................

....

...........

.g. . . . . . . . ... . .

Tax litigation function 258 6 6 ............. 258

... ............................. .............................................. .....

570 1 1 7

unctio n 223 464 G l liti ati on f

Other 134 293 265 .............

162

....................... ....................................................... .

Total 1,303 1,393 1,444 1,252

Tax Court cases total 50,737 30,404 34,446 46,695

....... ....................................................................... I .................

Tax & penalty in dispute $33,480 $7,864 $5,552 ..........

$3.5,79.2

...... * .......... ............... -....... * .......... N/A

...

Tax &..pen.

ally determined .......

N/A..........

N/A......$1,7.25 ... I ....................

.. .. ... .... .......... ...... ... ... .... ..

of cases settled: ..................................................... .................................... .......

- Won N/A N/A 718 ................... IVA

..........................................................................

....

Lost N/A WA 130 N/A

...... ...... ........... ........................................................................

Split N/A WA 583 .............

N

.

/A

................................. ..............................................

Gases on appeal (decided/pending) N/A NIA 153 ................427

............................................. ....

....

Tax an

.

d

.

pe

.

in

.

aft

.

y

.

d

.

eci

.

ded

.

/

.

p

.

ending N/A N/A $75 $456

................. ......... ............................

Ref'u'in-s'uit's':* ......... * ...... ........................

....

Distr

.

i

.

c

.

t

.

C

.

ou

.

rts

............ ..........

2 3 17 76 1 844 ........

2,

.

23

.

4.

............. ........ ............................................................ . ..

Amount in suitsP . $741 $190 $171 $760

................................................ ....... .........................................

Amount not refunded' N/A WA $112165.5% ..........

N ./A

...............................................................

...................

Claims Court 750 202 141 811

........................................... ............. I ................................

Amount in suits6 $1,204 $749 $269 $1,684

.................................................................................................

Amount not refunded7 N/A wA $164/61% N/A

............................................................................................

Cases on appeal NIA WA 49 ..........

f 3.6. ...................................................................................

Tax and penalty decided/pending N/A N/A $39 $69

............................................................. I ...................................

Total 53,804 31,357 35,4311 49,740

Total Chief Counsel Workload 167,192 195,611 205,482 157,321

50
Table 32 - Chief Counsel Workload by Region/Office

Pending Pending

Region/Office Oct 1, 1991 Received Closed Sept 30, 1992

Central 8,900 7,650 8,139 8,411

..................... ......................................................................................

Mid-Atlantic 10,382 9,672 9,680 10,374

.................................................................................................... ............

Midwest 9,072 8,945 8,811 9,206

................... I ... I ..........................................................................................

North Atlantic 13,748 9,413 10,681 12,480

..................................................................................................................

Southeast 9,974 15,087 14,377 10,684

..................................................................................................................

Southwest 14,392 18,456 16,361 16.487

.... I .............................................................................................................

Western 22,985 20,714 22,485 21,214

Total Regions 89,453 89,937 90,5U 88,856

International Function 1,303 1,393 1,444 1,252

.................................................................. ...............................................

Total National Office 76,436 104,281 113,504 67,213

................................................................................... ..............................

Total Chief Counsel Workload 167,192 195,611 295,482 157,321

Table 33 - Comparison of Equal Employment Opportunity Statistics

internal Revenue Service Asian-American/ American Indian/

White Black Hispanic Pacific Islander Alaskan Native

............................ ............................ ............................ ............................ ............................

Male Female Male Female Male Female Male Female Male Female Total

,Full-time and Part-time 31,437 40,063 4,720 17,504 2,258 4,327 1,178 1,499 243 486 103,915

.................................................................................................. ............................................................................. ..................................................

Seasonal 5,735 12,941 1,333 6,312 473 1,572 181 293 55 248 2

.

9.1

.

4 5

.......................................................................................................................... ......................................

..........................................................

TOTAL 37,172 53,004 6,053 23,816 2,731 5,899 1.359 1,792 298 734 133,060

Federal civilian labor force-

(Source OPM's Central Personnel

Data File) 43.8% 28.2% 6.7% 10.6% 3.2% 2.3% 3.2% 1.3% 0.9% 0.9% 100%

Internal Revenue Service

Full-time and and part-time 30.3% 38.6% 4.5% 16.8% 2.2% 4.2% 1.1% 1.4% 0.2% 0.5% 100%

..................................................................................................................................................................................................................................

Seasonal 19.7% 44.4% 4.6% 21.7% 1.6% 5.4% 0.6% 1.0% 0.2% 0.9% 100%

Civilian Labor Force Source:

. .1. 0.2%9 100% (11990 census data File) 60% 26.5% 3.6% 3.1% 2.8% 1.3% 1.1% .5% U.-

51
Footnotes for Table 1

* Less than 0. 1%

NOTE: Detail may not add to totals due to rounding.

1. Includes Presidential Election Campaign Fund contributions of $32,319,473 in fiscal year

1991 and $29;622,465 in fiscal year 1992.

2. Collections of individual income tax are not reported separately from old-age, survivor's, disability and hospital insurance (OASDHI) taxes on wages, salaries, and self-employment

income. The amount of OASDHI tax collections shown is based on estimates made by the Secretary of the Treasury pursuant to the provisions of section 201 (a) of the Social Security

Act as amended and includes all OASDHI taxes. The amounts shown for the two categories of individual income taxes were derived by subtracting the OASDHI tax estimates from the combined totals collected.

3. Does not include interest paid on refunds.

4. Refunds from Forms 1040, 1040A, and 1040EZ including withheld taxes, minus FICA.

Footnotes for Table 2

NOTE: Detail may not add to totals due to rounding.

1. Includes Forms 1040SS/PR, 1040C, and 1040NR.

2. Includes Forms 1040X, 1120X, 2688, 4868, 7004, 1041A, and 8752.

Footnotes for Table 3

NOTE: Detail may not add to totals due to rounding. Amounts reflect adjustments made to data reported in prior years. Negative figures are displayed when prior year adjustments exceed current year receipts.

1. Receipts in the various states do not indicate the federal tax burden of each since, in many instances, taxes are collected in one state from residents of another state. For example, withholding taxes reported by employers located near state lines may include substantial

amounts withheld from salaries of employees who reside in neighboring states. Also, the

taxes of some corporations are paid from a principal office, although their operations may be located in another state, or throughout several states.

2. Corporate tax rates generally ranged from 15 to 39 percent of taxable income.

3. Includes taxes of $181.6 million on unrelated business income of exempt organizations (Forms 990T).

4. Collections of individual income tax (withheld and not withheld) include old-age, survivor's, disability, and hospital insurance taxes on salaries and wages (FICA) and self-employment income (SECA). Estimated national totals for individ"al inrnmp. t ly nnd f- .-Iny-f t--

are shown in table 1, and are used to obtain national totals for individual income taxes and for employment taxes in table 4.

5. Individual Income tax rates for tax year 1991 were 15, 28, and 33 percent of taxable income. Includes SECA taxes imposed on taxable self-employment income.

6. Includes fiduciary income tax collections of $6.1 billion.

7. Income tax rates for 1991 were 15, 28, and 33 percent.

8. A tax rate of 6.2 percent was imposed on employers with one or more covered employees in each of 20 days in a year, each day being in a different week, or with a quarterly payroll for covered employment of at least $1,500 in the current or preceding calendar year. This was applied to the first $7,000 of taxable wages paid to each covered employee. The tax is reduced by credits of up to 5.4 percent for unemployment contributions paid to states.

9. Estate and gift tax rates ranged from 18 to 55 percent.

10. Amounts not classified by state or district as of the end of the fiscal year. This includes tax payments made to banks under the Federal Tax Deposit (FTD) System. These payments

are included in collections but are not classified by district until applied to taxpayer accounts. Also included are credits allowable on income tax returns for certain gasoline, diesel, and special motor fuel tax payments and for excess payments underthe Federal Insurance Contributions Act. Designations by taxpayers of a portion of their taxes to the Presidential Election Campaign Fund are also included even though they are not collections, as such, because they do not affect taxpayer liability. Transfer of amounts to this fund was made on a

national basis only and had no effect on district and regional collection data.

Footnote for Table 4

1. Transition quarter.

Footnotes f or Table 5

1. IRS issued 89.2 million refunds totaling $113.1 billion which includes $3.2 billion in

interest.

2. Includes $2.0 billion paid in interest.

3. Includes earned income credits refunded in the amount of $7.7 billion, refunds of $962.2

million paid on partnership and fiduciary returns, and $434.3 million paid in interest. Direct

deposit refunds were $12 billion. The average refund for all individual income tax returns was

$1024. (Note: The Annual Report for 1991 incorrectly showed partnership and fiduciary

refunds of $124.7 million instead of $1.2 billion. -

4. Includes withheld income tax, FICA, Railroad Retirement, and FUTA refunds and credits.

5. Includes credits and claims for gasoline and lubricating oil tax payments.

6. Includes Highway and Airport Trust Fund reclassification.

7. Includes credits for excess payments underthe Federal Old Age and Survivors, Federal

Disability, and Federal Hospital Funds of $804.6 million.

8. The source of this information is the U.S. Customs Service and the Bureau of Alcohol,

Tobacco, and Firearms

9. Includes refunds issued in September, 1992, minus refund reversals received in

September, 1992, that were not classified by September 30, 1992 (the end of the fiscal year).

For accounting and comparative purposes, the data included in this table must agree with the

actual transactions affecting the refund and interest appropriation accounts for the fiscal year.

Footnotes for Table 6

1. Includes 246,795 refunds issued to fiduciaries and partnerships, and 9.0 million refunds

issued through direct deposit.

2. Includes refunds issued in September, 1992, minus refund reversals received in

September, 1992, that were not classified by district before September 30, 1992, (the end of

the fiscal year). For accounting and comparative purposes, the data included in this table

must agree with the actual transactions affecting the refund and interest appropriation.

Footnote for Table 7

1. Column contents for columns 2-14 are explained below by appropriate columns.

Forms 1040, 1040A, 1040EZ, 1040NR, 1040SS-PR and 1040C.

Form 1040ES.

Form 1041.

ruint luffira.

Form 1065.

Form 1066 and the 1 120 series of returns.

Form 706 series of returns.

Form 709.

(10) Forms 940, 940EZ, 940PR, 941. 941 PR & SS, 941 E, 942, 942PR, 943, 943PR, CT-1,

and 1042.

(11) Forms 990, 990PF, 990T, 990C. 990EZ, 5227 and 4720.

(12) Forms 5500, 5500C, 5500EZ, and 5500R.

(13) Forms 720, 730, 2290 and 11 C.

(14) Forms 1040X, 11 20X, 2688, 4868, 7004, 8752, and 1041A.

Footnotes f or Table 8

1. The "-" indicates the district did not participate in electronic filing that year. Electronic

filing was available for individual returns nationwide for the first time in 1990. For 1991 and

1992 individual district volumes are as of May 24, 1991, and May 22, 1992. Individual district

volumes for 1991 have been revised to agree with the same time period as 1990 (May 24) and

1992 (May 22).

2. District totals do not add to grand totals. Grand totals for 1991 and 1992 are as of Aug. 27.

3. 1992 volumes are as of December 1, 1992. Partnership and Employee Pension Plan returns

were filed ationwide to Andover Service Center for processing. Fiduciary returns were filed

through then Philadelphia I Service Center for processing.

4. Volumes include related Forms K-1 filed with 331 Forms 1065 filed in paper form (Paper/

Parent Option).

Footnotes for Table 10

1. As measured by the Integrated Test Call Survey System (ITCSS). Period covered is from

February 3, 1992 through April 25, 1992.

2. During 1992 we did not have a valid means of collecting data on the number of students

participating in the Understanding Taxes (UT) Program.

52
Footnotes f or Table 11

1. Total positive income.

2. Total gross receipts.

3. Balance sheet assets.

4. Exempt organization examination includes the following:

Number of returns examined by type

501 (c)(3) -Private foundations

501 (c)(3) - All others

501 (c)(4) - Civic leagues, social welfare

501(c)(5) - Labor, agricultural, horticulture

501 (c)(6)-Business leagues

501 (c)(7) - Social and recreational clubs

501 (c) - All others

Form 1120 POL

Farmers cooperatives

Employment tax

Form 990-T

Form 4720

Footnotes forTable 1 2

1. Total positive income.

2. Total gross receipts.

3. Balance sheet assets.

Footnotes for Table 15

736

1852

474

445

748

686

650

287

386

3945

2336

242

Note: Detail may not add to your totals due to rounding. With the exception of estimated tax,

assessments and abatements can apply to any tax year. In addition to penalties, the law

requires that interest be charged on late payments. Net interest charges totaled $4.9 billion on

individual returns. Net interest charged to business returns totaled $4.8 billion.

1. Includes failure to supply taxpayer identification number and failure to report tips.

2. Includes Forms 11 20, 990C and 990T.

3. Includes Forms 940, 941, 942, 943 and CT-1.

4. Includes Forms 1041 A, 5227, 99OPF, 990, 4720, 2290, 11C, 720 and 730.

5. Includes Forms 1041, 1065 and individual retirement accounts.

6. Includes penalties assessable under the Tax Equity and Fiscal Responsibility Act of 1982

and the Tax Reform Acts of 1984 and 1986. Examples are failure to file W-2, failure to file

proper information returns (e.g. 1099), and the penalty tar promoting an abusive tax shelter.

Footnote for Table 16

1. Revenue base protection is any action taken by the Internal Revenue Service to prevent the

release of funds from the Treasury in response to taxpayer efforts to recoup all, or part, or

previously assessed and paid tax or penalty.

This table replaces prior Table 16 -Examination Results.

Footnotes for Table 19

1. Includes subsequent notices and Installment Agreement yield.

2. Includes TDA, Deterred and NMF yield.

3. Adjusted to balance in accounting method.

Footnotes for Table 24

1. These figures may include employees that are counted as participants in more than

one plan.

2. The termination reporting system does not distinguish between stock bonus and

ESOP plans.

Footnotes for Table 25

1. All section 501 (c) (3) organizations are not included because certain organizations, such as

churches, integrated auxiliaries, subordinate units and conventions or associations of

churches need not apply for recognition of exemption unless they desire a ruling. Also,

includes IRC 501(k) organizations.

2. These organizations are not EOs, but are taxable entities for which the Exempt

Organizations function has program responsibility.

Footnote for Table 26

1. Application withdrawn by taxpayer and failure to furnish required information.

Footnotes for Table 27

1. This figure represents actual IRS operating costs from fiscal year 1975 exclusive of

reimbursements received from other agencies for services performed. While the operating

cost figures for fiscal years prior to 1975 may in some cases include reimbursements, those

amounts are small and do not alter the cost figures in column 3.

-Economic stabilization program average positions included in 1972, 1973 and 1974.

- Federal energy program average positions included in 1974.

- 1972 adjusted by 3,990 average positions to reflect the AT&F transfer-July 1972. AT&F

included in years 1960-71. Eleven average positions transferred to office of the Secretary in

1965. Twenty average positions transferred to office of the Secretary in 1963.

2. Population and Tax per capita figures have been revised to agree with the Census Bureau's

adjusted data on population.

3. Methodology to count average positions realized was adjusted in 1984 to conform to Office

of Personnel Management instructions, 1983 average positions realized also are adjusted for

comparability.

Footnote for Table 28

1. Reflects obligations from prior year Appropriations (1,992 = 24,012).

Footnotes for Table 29

1. Reimbursements are included in figures.

2. Personnel Compensation includes costs for employees salaries, terminal payments,

overtime, cash awards, expert witness fees, employer's share of benefits, cost of living

allowance, moving expense allowance, severance pay and unemployment compensation

payments.

3. Equipment includes cost for automobiles. ADP equipment, investigative equipment,

software, office equipment, furniture and fixtures and telecommunications equipment.

4. Other costs are fortransportation of things, rental payments, communications, utilities,

printing and reproduction, supplies and materials, cooperative agreements, indemnity

payments, small claims act payments, and judgements and settlements.

Finintirlintas fnr Table 30

1. Reimbursements are included in the above figures.

2. Permanent includes all permanent, permanent part-time and seasonal career employees.

3. National Office includes only employees employed at the National Office or the Internationa

activity. It excludes Appeals, Counsel, and Inspection employees that are not employed at the

National Office.

4. Includes the Martinsburg and Detroit Computing Centers.

5. Data Processing Operations includes Returns Processing, Statistics of Income, Informatior

Systems Management, Information Systems Development, Document Matching - Returns

Processing, and Service Center Resources Management.

6. Collection includes Document Matching - Collection.

7. Management Services includes Procurement, Planning and Research, Finance, and Human

Resources.

8. Counsel includes International Counsel.

9. Inspection includes Internal Audit and Internal Security.

Footnotes for Table 31

1. Received statistics are net numbers, i.e., actual number of cases received plus or minus

transfers and adjustments to prior years' receipts.

2. A case represents taxpayers grouped together by tax periods with common or related

issues that may be considered and disposed of together. Cases docketed in the Tax Court in

response to a notice of deficiency issued by Appeals are not included because they remain in

inventory, merely shifting from nondocketed to docketed status. Cases that are subsequently

tried or settled by Counsel are included.

3. During FY 92, the National Office discontinued the processing of "Earnings and Profits

Determinations."

4. Includes actions for injunctions and/or declaratory relief and district counsel cases.

5. Tax Litigation workload includes International Tax Court and Refund workload which is als

reflected under the International function above. Dollar data is not duplicative. Disposals

include cases tried, settled, and dismissed.

6. Amount of taxes, penalties and assessed interest sought as a refund but does not include

counterclaims.

7. That portion of the amount sought as a refund, which the Government protected in

litigation.

8. Beginning inventory does not match ending inventory of the FY91 Annual Report due to

mathematical errors in the previous report.

5
Commissioners of

Internal Revenue

Office of Commissioner of

Internal Revenue created by

Act of Congress, July 1, 1862.

George S. Boutwell

Massachusetts

July 17,1862IMarch 4,1863

Joseph J. Lewis (acting)

Pennsylvania

March5 to March 17,1863

Joseph J. Lewis

Pennsylvania

March 18,1863/june 30,1865

William Orton

New York

July 1, 186510ct. 31, 1865

Edward A. Rollins

New Hampshire

Nov. 1, 1865/March 10, 1869

Columbus Delano

Ohio

March 11, 186910ct. 31,1870 Tjob.-. W. Douglas-. (acting)

Pennsylvania

Nov. 1, 1870/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/Aug. 1, 1876

Green B. Raurn

Illinois

Aug. 2,1876/April 30,1883

Henry C. Rogers (acting)

Pennsylvania

MayI to May 10, 1883

John J. Knox (acting)

Minnesota

May 11 to May 20,1883

Walter Evans

Kentucky

May 21, 1883IMarch 19, 1885

Joseph S. Miller

West Virginia

March 20,1885IMarch 20,1889

John W. Mason

West Virginia

March 21, 1889/April 18, 1893

Joseph S. Miller

West Virginia

April 19,1893INov. 26,1896

W. St. John Forman

Illinois

Nov. 27,1896IDec. 31,1897

Nathan B. Scott

West Virginia

Jan. 1, 1898IFeb. 28,1899

George W. Wilson

Ohio

March 1, 1899INov. 27,1900

Robert Williams, Jr., (acting)

Ohio

Nov. 28 to Dec. 19,1906

John W. Yerkes

Kentucky

Dec. 20, 1900/April 30, 1907

Henry C. Rogers (acting)

Pennsylvania

May1 to June 4,1907

John G. Capers

South Carolina

June 5, 1907/Aug. 31, 1909

Royal E. Cabell

Virginia

Sept. 1, 1909/April27, 1913

William H. Osborn

North Carolina

April 28,19131SVpt. 25,1917

Daniel C. Roper

South Carolina

Sept. 26,1917IMarch 31,1920

William M. Williams

Alabama

April 1, 1920/April 11, 1921

Millard F. West (acting)

Kentucky

April 12 to May 26,19-91

David H. Blair

North Carolina

May 27,1921IMay 31,1929

Robert H. Lucas

Kentucky

June 1, 1929/Aug. 15,1930

H. F. Mires (acting)

Washington

Aug. 16 to Aug. 19,1930

David Burnet

Ohio

Aug. 20,1930IMay 15,1933

Pressly R. Baldridge (acting)

Iowa

May 16 to June 5,1933

Guy T. Helvering

Kansas

June 6,1933IOct. 8,1943

Robert E. Hannegan

Missouri

Oct. 9,1943/jan. 22,1944

Harold N. Graves (acting)

Illinois

Jan. 23 to Feb. 29,1944

Joseph D. Nunan, Jr.

New York

March 1, 1944/june 30,1947

George J. Schoeneman

RhodeIsland

July 1, 1947/july 31, 1951

John B. Dunlap

Texas

Aug. 1, 1951INov. 18,1952

54
John S. Graham (acting)

North Carolina

Nov. 19,1952/jan. 19,1953

Justin F. Winkle (acting)

New York

Jan. 20 to Feb. 3, 1953

T. Coleman Andrews

Virginia

Feb. 4, 195310ct. 31, 1955

0. Gordon Delk (acting)

Virginia

Nov.1 to Dec. 4, 1955

Russell C. Harrington

Rhode Island

Dec. 5, 1955ISept. 30, 1958

0. Gordon Delk (acting)

Virginia

Oct.I to Nov. 4, 1958

Dana Latharn

California

Nov. 5,1958/jan. 20,1961

Charles 1. Fox (actin-1

Utah

Jan. 21 to Feb. 6,1961

Mortimer M. Caplin

Virginia

Feb. 7,1961/july 10, 1964

Bertram M. Harding (acting)

Texas

July 11, 1964/jan. 24, 1965

Sheldon S. Cohen

Maryland

Jan. 25,19651jan. 20,1969

William H. Smith (acting)

Virginia

Jan. 21 to March 31, 1969

Randolph W. Thrower

Georgia

April 1,1 969/june 22, 1971

Harold T. Swartz (acting)

Indiana

June 23 to Aug. 5,1971

Johnnie M. Walters

South Carolina

Aug. 6,1971/April 30,1973

Raymond F. Harless (acting)

California

MayI to May 25, 1973

Donald C. Alexander

Ohio

May 25,1973IFeb. 26,1977

William E. Williams (acting)

Illinois

Feb. 27 to May 4, 1977

Jerome Kurtz

Pennsylvania

May 5, 197710ct. 31, 1980

William E. Williams (acting)

Illinois

Nov. 1, 19801March 13,1981

'D1.0scoe L. Egger,

Indiana

March 14,1981/April 30,1986

James L.Owens (acting)

Alabama

May1 to Aug. 3,1986

Lawrence B. Gibbs

Texas

Aug. 4,19861March 4,1989

Michael J. Murphy (acting)

Wisconsin

March5 to July 4, 1989

Fred Goldberg

Missouri

July 5, 1989IFeb. 2, 1992

Shirley D. Peterson

Colorado

Feb. 3, 1992 to present

Principal Officers of the

Internal Revenue Service

as ofSeptember 30, 1992

National Office

COMMISSIONER

SnIRLEY D. PETERSON

Deputy Commissioner

Michael P. Dolan

Assistants to the Commissioner

Attorney Advisors

Frances M. Homer

Thomas R. Hood

Assistant to the

Deputy Commissioner

John C. Stocker

Executive Secretariat

Helen Bolton

Assistant to the Commissioner

(Equal Opportunity)

Helen L. White

Assistant to the Commissioner

(Legislative Liaison) f,"ayle G. Morin

Assistant to the Commissioner

(Public Affairs)

Ellen Murphy

Assistant to the Commissioner

(Quality)

Alvin H. Kolak

Assistant to the Commissioner

(Taxpayer Ombudsman)

Damon 0. Holmes

Director, Legislative

Affairs Division

Richard J. Hinkemeyer

(acting)

55
CHIEF FINANCIAL OFFICER

PHIL BRAND

FINANCF/CONTROLLER

Assistant Commissioner

C. Morgan Kinghorn

Directors:

Budget

Carl Moravitz

Financial Management

Joseph Donlon

Systems & Accounting

Standards

Anthony Musick

Automated Financial System

Project Manager

David Biehler

PLANNING & RESEARCH

Assistant Commissioner

Gary H. Matthews

Deputy Assistant Commissioner

Roger K. Burgess

Directors:

Planning

Frank Nixon

Research

Roger L. Plate

HUMAN RESOURCES & SUPPORT

Assistant Commissioner

David A. Mader

Deputy Assistant Commissioner

Tyrone B. Ayers

Directors:

Facilities & Information

Management Support

Robert E. Brazzil

Human Resources

Darlene R. Berthod

Support & Services Division

Richard E. Simko

Practice

Leslie S. Shapiro

PROCUREMENT

Assistant Commissioner

Gregory D. Rothwell

Deputy Assistant Commissioner

James Williams

Directors:

Information Systems

Acquisitions

David A. Rodgers

Office ofProcurement Policy

Frances C. Wray

Operations

Michael Jones

Office ofInformation &

Management Services

Joan Longo

Contract Administration

James Williams (acting)

Office ofTax Processing

Systems Acquisition

Fred Martin

CHIEF OPERATIONS OFFICER

DAVID G. BLATTNER

COLLECTION

Assistant Commissioner

Robert E. Wenzel

Deputy Assistant Commissioner

James D. Helm

Directors:

Office of Operations

James E. Donelson

Quality, Budget & Research

Ronald S. Rhodes

Autornative Systems

Janice M. Dionne

CRIMINAL INVESTIGATION

Assistant Commissioner

Inar Morics

Deputy Assistant Commissioner

David B. Palmer

Directors:

Operations

Patrick D. Dorsey

Resources & Development

Douglas S. Evaul.

Review & Information Systems

Managernent

J. Wayne Loving

EMPLOYEE PLANS &

ExEmPT ORGANIZATIONS

Assistant Commissioner

John E. Burke

Deputy Assistant Commissioner

Edward J. Weiler

Directors:

(:f1ce ofEmployee Plans &

Exempt Organizations

Operations

Donald R. Kehoe

Employee Plans

Technical & Actuarial

Martin I. Slate

Exempt Organizations

Technical

Marcus S. Owens

(~ffce ofPlanning,

Development & Quality

Garland A. Carter

ExAmINATION

Assistant Commissioner

George A. O'Hanlon

Deputy Assistant Commissioner

Michael L. Killfbil

Chiefof Staff

J.

Coordinated Examination

Programs

John J. Monaco

Directors:

Disclosure

Carman L. Gannotti

Cffice ofAutomation

Richard Lehman

(Vice ofFinancial Management

Operations Research

William Roth

Examination Programs

William R. Stiff

Examination Quality & Support

Jaynes J. Feehan, Jr.

Information Reporting Program

John F. Devlin

56
INTERNATIONAL

Assistant Commissioner

Regina M. Deanehan

Deputy Assistant Commissioner

David P. Robins

Directors:

International Programs

Stanley Novack

Resources Management

Gene Porter

Tax Administration Advisory

Services

Socorro Velazquez

Taxpayer Service & Compliance

Margaret J. Connell

RETURNS PROCESSING

Assistant Commissioner

Judy K. Van Alfen

Deputy Assistant Commissibner

Robert J. Carver

Directors:

Returns Processing

Accounting

Beverly Stowell

Statistics ofIncome

Frederick J. Scheuren

Management Operations

Edward J. Martin

TAXPAYER SERVICES

Assistant Commissioner

Deborah S. Decker

Deputy Assistant Commissioner

Margaret J. Lullo

Directors:

Taxpayer Service

Donald L. Houck

Tax Forms & Publications

Arthur Altman

CHIEF INFORMATION OFFICER

HENRY H. PfflLCOX

INFORMATION SYSTEMS

MANAGEMENT

Assistant Commissioner

Walter H. Hutton, Jr.

Deputy Assistant Commissioner

Bruce L. Pitt

Directors:

Corporate Systems

Donald E. Curtis

Detroit Computing Center

Detroit, MI

Ronald W. Kirby

Martinsburg Computing Center

Martinsburg, WV

Gerald A. Rabe

Quality Assurance

Edward J. Curvey

Systems Management

David L. Caugler

Input Systems

Edmund St. jean

Planning, Budgeting & Review

Andy Buckler

Case System

Joyce Ruthuen

INFORMATION SYSTEMS

DEVELOPMENT

Assistant Commissioner

Mark D. Cox

Deputy Assistant Commissioner

Christoper J. Egger

Directors:

Priject Management

John R. Watson

Projects

Richard P. Oakes

Systems Acquisition

Renee 0. Shaw

Systems Design

Steve Medlin

System Integration

Theodore F. Gonter

Telecommunications

Walter Irvine

57
......................................................................................................................................... ............ ... -.............. - ............ ........................................................ -........ --......................

Regional and

ni rim nffieura

MID-ATLANTIc REGION MIDWEST REGION

Regional Commissioner

Elmer W. Kletke

NORTH ATLANTic REGION

Regional Commissioner

Charles H. Brennan

CENTRAL REGION

Regional Commissioner

Leon Moore

Assistant Regional

Commissioners:

Collection

Charles 0. Carley

Criminal Investigation

Ted F. Brown

Data Processing

Henry 0. Lamar, Jr.

Examination

Paul C. Lally

Resources Management

Jon R. Swan

District Directors:

Cincinnati, OW

Robert T. Johnson

Cleveland, OH

Jack P. Chivatero

Detroit, MI

John 0. Hummel

Indianapolis, IN

William M. Jacobs

Louisville, KY

Williarn E. Palzkill

Parkersburg, WV

Jack L. Schroeder

Director, Cincinnati

Service Center

Frederic P. Williams

Assistant Regional

Commissioners:

Collection

Leroy C. Gay

Criminal Investigation

Thomas A. Wise

Data Processing

Robert C. Wilkerson

Examination

Richard L. McCleary

Resources Management

John E. Binnion 11

District Directors:

Baltimore, MD

Herma J. Hightower

Newark, NJ

John 1. Jennings

Philadelphia, PA

Robert F. Hilgen

Pittsburgh, PA

Robert 1. Brauer

Richmond, VA

Jack G. Petrie

Wilmington, DE

Charles 0. Guy

Director, Philadelphia

Service Center

Joseph H. Cloonan

Assistant Regional

Commissioners:

Collection

Allen G. Woodhouse

Criminal Investigation

Donald K. Vogel

Data Processing

Ladd Ellis, Jr.

Examination

Alvin J. Freeman, Jr.

Resources Management

Jack E. Shank

District Directors:

Aberdeen, SD

David M. Reizes

Service Center

Everett Loury

Chicago, IL

Richard S. Wintrode, Jr.

Des Moines, IA

Curtis S. Jenkins

Fargo, ND

Audrey A. Saari

Helena, MT

Arnold D. Wiley

Milwaukee, WI

John T. Ader

0maha, NE

James A. Grant

St. Louis, MO

Ralph F. Shilling

St. Paul, MN

C. Dudley Switzer

Springfleld, IL

Daniel L. Black, Jr.

Director, Kansas City

Regional Commissioner

Cornelius J. Coleman

Assistant Regional

Commissioners:

Collection

Eugene P. Pfeiffer

Criminal Investigation

Michael D. Orth

Data Processing

Theodore L. Tedesco

Examination

Louis E. Carlow

Resources Management

Richard F. Moran

District Directors:

Albany, NY

jean K. Pope

Augusta, ME

Arlene C. Kay

Boston, MA

Gerald R. Esposito

Brooklyn, AFY

Eugene D. Alexander

Buffalo, NY

Carol M. Landy (acting)

Burlington, VT

Stephen L. Daige

Hartford, CT

James E. Quinn

Manhattan, NY

Robert E. Mirsberger

Portsmouth, NH

Paul M. Harrington

Providence, RI

Malcolm A. Liebermarm

Director, Andover

Service Center -

Thomas M. Quinn

Director, Brookhaven

Service Center

Bobby G. Hughes

58
SOUTHEAST REGION SOUTHWEST REGION WESTERN REGION

Regional Commissioner

John D.Johnson

Regional Commissioner

Richard C. Voskuil

Regional Commissioner

Thomas P. Coleman

Assistant Regional

Commissioners:

Collection

Charles G. Hoyle

Criminal Investigation

Randall D. Vaughn

Data Processing

John A. Ressler

Examination

C. Ashley Bullard

Resources Management

Nelson A. Brooke

District Directors:

Atlanta, GA

Paul D. Williams

Birmingham, AL

Philip i. Sullivan

Columbia, SC

Donald L. Breihan

Ft. Lauderdale, FL

Merlin W. Heye

Greensboro, NC

J. Robert Starkey

Jackson, MS

Robert B. Douthitt

Jacksonville, FL

James J. Ryan

Little Rock, AR

Lee R. Monks

Nashville, TN

Glenn Cagle

New Orleans, LA

John C. Wendorff

Director, Atlanta Service Center

Michael R. Allen

Director, Memphis

Seruice Center

Richard W. Marsh

Assistant Regional

Commissioners:

Collection

Jack L. Miller

Criminal Investigation

Brian (Tim) Wellesley

Data Processing

Stephen J. Stalcup

Examination

James R. Kopidlansky

Resources Management

James A. Lindsey

District Directors:

Alburquerque, NM

Herbert J. Huff

Austin, TX

Richard R. Orosco

Cheyenne, WY

Conrad L. Clapper

Dallas, TX

Gary 0. Booth

Denver, CO

Gerald F. Swanson

Houston, TX

Arturo A. Jacobs

Oklahoma City, OK

Kenneth J. Sawyer

Phoenix, AZ

Prescott A. Berry

Salt Lake City, UT

Carol M. Fay

Wichita, KS

Bruce R. Thomas

Director, Austin

Compliance Center

Robert D. Ah Nee

Director, Austin Service Center

Charles J. Peoples

Director, Ogden Service Center

Michael S. Bigelow

Assistant Regiohal

Commissioners:

Collection

Steven E. Taylor

Criminal Investigation

Paul M. Miyahara

Data Processing

J. Paul Beene

Examination

Wayne R. Thomas

Resources Management

Ludwig G. Kuttiner

District Directors:

Anchorage, AK

Robert W. Brock

Boise, ID

- in jack B. Chea.y

Honolulu, HI

Billy J. Brown

Laguna Niguel, CA

Jesse A. Cota

Las Vegas, NV

Robert E. Withers

Los Angeles, CA

Michael J. Quinn

Portland, OR

Carolyn K. Leonard

Sacramento, CA

Raymond A. Spillman

San Francisco, CA

Francis S. Miceli

San Jose, CA

Calvin E. Esselstrom

Seattle

'

WA

Ann Brown

Director, Fresno Service Center

Theron C. Polivka

59
Principal Officials

of Inspection

NATIONAL OFFICE

CHIEF INSPECTOR

TED R. KERN

Deputy ChiefInspector

Gary D. Bell

Assistant ChiefInspector

Internal Audit

Billy Morrison

Assistant Chief Inspector

Internal Security

Douglas C. Crouch

CENTRAL REGION

Regional Inspector

Kenneth A. Thompson

Assistant Regional Inspector

Internal Audit

Edward L. Ball

Assistant Regional Inspector

Internal Security

Harold J. Michaels

MID-ATLANTIc REGION

Regional Inspector

Walter D. Duvall

Assistant Regional Inspector

Internal Audit

Mary V. Baker

Assistant Regional Inspector

Internal Security

William F. Gill

MIDWEST REGION

Regional Inspector

Ronald J. Lambert

Assistant Regional Inspector

Internal Audit

Parker F. Peanon

Assistant Regional Inspector

Internal Security

Philip Newsome

NORTH ATLANTIC REGION

Regional Inspector

Joseph F. Reinbold

Assistant Regional Inspector

Internal Audit

Kerry R. Kilpatrick

Assistant Regional Inspector

Internal Security

Joseph Lunonica

SOUTHEAST REGION

Regional Inspector

Richard E. Byrd, Jr.

Assistant Regional Inspector

Internal Audit

Lawrence A. Grant

Assistant Regional Inspector

Internal Security

Michael J. Bik

SOUTHWEST REGION

Regional Inspector

Derle Rudd

Assistant Regional Inspector

Internal Audit

Emmette Walker

Assistant Regional Inspector

Internal Security

John H. Dietz

WESTERN REGIC)N

Regional Inspector

Aldwyn K. Hyatt

Assistant Regional Inspector

Internal Audit

Walter Arrison

Assistant Regional Inspector

Internal Security

Kenneth Davidson

Chief Counsel for the

Internal Revenue Service

Walter H. Smith/1866

William McMichael/1871

Charles Chesley/1871

Thomas J. Smith/1888

Alphonso Hart/1890

Robert T. Hough/1893

George M. Thomas/1897

Albert W. Wishard/1901

A.B. Hayes/1903

Fletcher Maddox/1908

Ellis C. Johnson/1913

A.A. Ballantine/1918

D.M. Kelleher/1919

Robert N. Miller/1919

Wayne Johnson/1920

Carl A. Mapes/1920

Nelson T. Hartson/1923

Alexander W. Gregg/1925

Clarance M. Charest/1927

E. Barrett Prettyman/1933

Robert H. Jackson/1934

Morrison Shaforth/1936

John P. Wenchel/1937

Charles Ohphant/1947

Charles W. Davis/1952

Daniel A. Taylor/1953

John Potts Bames/1955

Nelson P. Rose/1957

Arch M. Cantrall/1958

Hart H. Spiegel/1959

Crane C. Hauser/1961

Sheldon S. Cohen/1964

Mitchell Rogovin/1965

Lester R. Uretz/1966

K. Martin Worthy/1969

Lee H. Henkel, Jr./1972

Meade Whitaker/1973

Stuart E. Seigel/1977

N. Jerold Cohen/1979

Kenneth W. Gideon/1981

Fred Goldberg, Jr./1984

William F. Nelson/1986

Abraham N. M. Shashy, jr./1990

60
The following were Acting

Chief Counsel during periods

when there was no Chief

Counsel holding the office:

John W. Burrus

March 2 to Nov. 30,1936

Mason B. Leming

Dec. 6, 1951 to May 15, 1952

Kermeth W. Gemmill'

June 1 1 to Nov. 8, 1953

Rudy P. Hertzog

Dec. 1, 1954 to May 8, 1955,

andJan. 20 to Aug. 16, 1961,

and Sept. 1, 1963 to Jan. 5, 1964

Her-man T. Reiling

Jan. 19 to March 13, -1957, and

Aug. 31 to Sept. 20,1959

Richard M. Halm

Jan. 20 to June 25, 1969

Lee H. Henkel, Jr.

Jan. 16 to tune 11, 197-9

Lawrence B. Gibbs

April 1 7 to Oct. 19, 1973

Charles L. Saunders, Jr.

Jan. 20 to April 15,1977

Leon G. Wigtizer

April 16 toJune 23, 19 77

Lester Stein

June I to Nov. 16,1979

Jerome D. Sebastian

Jan. 21 to Feb. 2, 1981 and

March 30 to Aug. 14, 1981

Emory L. Langdon

Feb. 3 to March 29, 1981

Joel Gerber

May 28,1983 to March 17,1984

V. jean Owens

March 14 tojuly 27,1986

Peter K. Scott

Nov. 1, 1988 to Feb. 6, 1990

Note: From 1866to 1926, the chieflegal

officer for the Internal Revenue Service was

known as the Solicitor. For the next eight

years, 1926 to 1934, h~ had the tide of

General Counsel for the Bureau of Internal

Revenue. Since 1934, he has operated under

the title ofChief Counsel.

Principal Officers of the

IRS Office of Chief Counsel

as of September 30,1992

National Office

CMEF COUNSEL

ABRAHAm N. M. SHmffy, JR.

Deputy ChiefCounsel

David L. Jordan

Special Assistant to the

Deputy ChiefCounsel

James K. Sams

Counsel to the Chief Counsel

Charles S. Triplett

Special Counsel (Large Case)

James J. Keightley

Special Counsel

to the ChiefCounsel

Mary L. Harmon

National Director ofAppeals

James J. Casimir

Deputy National Director

U'Appea7-

i

L3

Donald E. Bergherm

Associate ChiefCounsel

(Finance and Management)

Richard J. Mihelcic

Deputy Associate

ChiefCounsel

(Finance and Management)

Kenneth A. Little

Special Assistant to the

Associate ChiefCounsel

(Finance and Management)

Hardi L. Jones

Assistant Chief Counsel

(General Legal Services)

Mark Kaizen

Associate Chief Counsel

(Intemational)

Robert E. Culbertson

Deputy Associate Chief Counsel

(International)

Vacant

Assistant Chief Counsel

(Intemational)

John T. Lyons

Benedetta Kissel

Associate ChiefCounsel

(Enforcement Litigation)

Patrick J. Dowling

Deputy Associate ChiefCounsel

(Enforcement Litigation)

Eliot D. Fielding

Special Appellate Counsel

Daniel F. Folzenlogen

Assistants Chief Counsel

(Enforcement Litigation):

Criminal Tax

Barry J. Finkelstein

Disclosure Litigation

Peter V. Filpi

General Litigation

Arnold E. Kaufman

Associate ChiefCounsel

(Domestic)

Stuart L. Brown

Deputy Associate ChiefCounsel

(Domestic) (Technical)

Vacant

Deputy Associate

ChiefCounsel

(Domestic) (Field Services)

Marlene Gross

Special Litigation Counsel

Stephen M. Miller

Assistants Chief Counsel

(Technical):

Corporate

Eric D. Solomon

Financial Institutions

and Products

James F. Malloy

Income Tax andAccounting

Glen R. Carrington

Passthroughs and

Special Industries

Paul F. Kugler

Assistant ChiefCounsel

(Field Service)

Dan Wiles

Associate Chief Counsel

(Employee Ben~fltslExempt

Organizations)

James J. McGovern

Deputy Associate ChiefCounsel

(Employee BenefitslExempt

Organizations)

Sarah Hall

fil
....................................... ........................................................................... ............ .................... .......... ...................................................... I .................... ....................... ..............

Regional and MID-ATLANTic REGION

Oistrict Officials

CENTRAL REGION

Regional Counsel

Clarence E. Barnes, Jr.

Regional Director ofAppeals

Thomas J. Yates

Deputy Regional Counsel

(Criminal Tax)

Charles M. Layton

Deputy Regional Counsel

(General Litigation)

Robert M. Venable

Deputy Regional Counsel

(Tax Litigation)

Robert J. Kastl

Assistant Regional Counsel

(General Legal Services)

Jeffrey S. Morris

As&istant Regional Counsel

IT ----

Mary Helen Weber

District Counsel and

ChiefAppeals Offices:

Cincinnati, OH

Counsel- Richard E. Trogolo

Appeals- Edward C. Heinz

Cleveland, OH

Counsel- Jack E. Prestrud

Appeals- Joseph R. Brimacomb

Detroit, MI

Counsel- Oksana 0. Xenos

Appeals- Zoru S. Hargrave

Indianapolis, IN

Counsel- Ross E. Springer

Appeals- Gerald W. Wendel

Louisville, KY,

Counsel- Ferdinand J. Lotz III

Appeals- Walter Jernigan

Regional Counsel

David E. Gaston

Regional Director ofAppeals

James A. Dougherty

Deputy Regional Counsel

(Criminal Tax)

George Reynolds

Deputy Regional Counsel

(General Litigation)

Mary C. Gorman

Deputy Regional Counsel

(Tax Litigation)

Vacant

Assistant Regional Counsel

(General Legal Services)

David J. Markman

Assistant Regional Counsel

(Large Case)

Eugene J. Wein

ni.vtrirt Cminsel and

ChiefAppeals Offices:

Baltimore, MD

Counsel- Herbert A. Seidman

Appeals- Thomas L. Kruse

Newark, NJ

Counsel- Matthew Magnone

Appeals- Patrick J. Glynn

Philadelphia, PA

Counsel- H. Stephen

Kesselman

Appeals- Vincent S. Caniello

Pittsburgh, PA

Counsel- Edward F. Peduzzi

'

Jr.

Appeals- Malvern P. Powell

Richmond, VA

Counsel- T. Keith Fogg

Appeals- John D. Piper

Washington, DC

Counsel- Melvin E. Lefkowitz

Appeals- David M. Gerber

MIDWEST REGION

Regional Counsel

Vacant

Regional Director ofAppeals

Paul H. Thornton

Deputy Regional Counsel

(Criminal Tax)

Rosabel 1. Seigan

Deputy Regional Counsel

(G~neral Litigation)

William J. York

Deputy Regional Counsel

(Tax Litigation)

Harmon B. Dow

Assistant Regional Counsel

(General Legal Services)

William P. Lehman

Assistant Regional Counsel

(Large Case)

James C. Lanning

District Counsel and

ChiefAppeals Cffices:

Chicago, IL

Counsel- James F. Kidd

Appeals- John M. Vest

Des Moines, IA

Counsel- Mark E. O'Leary

Helena, MT

Counsel- Virginia E. Cochran

Kansas City, MO

Counsel- James E. Cannon

Appeals- Charles F. Marcus

Milwaukee, WI

Counsel- Nelson E. Shafer

Appeals- Robert J. Collins

Omaha, NE

Counsel- Ronald M. Frykberg

Appeals- Edwin L. Brooke

Springfield, IL

Counsel- JeffP. Ehrlich

St. Louis

'

MO

Counsel- Richard A. Witkowski

Appeals- Douglas E. Kelley

St. Paul, MN

Counsel- Robert F.

Cunningham

Appeals- Kenneth J. Wielinski

NORTH ATLANTIc REGION

Regional Counsel

Agatha L. Vorsanger

Regional Director ofAppeals

Kevin P. Morgan

Deputy Regional Counsel

(Criminal Tax)

Margaret C. Tinagero

Deputy Regional Counsel

(General Litigation)

Myron Levine

Deputy Regional Counsel

(Tax Litigation)

Jay S. Hamelburg

Assistant Regional Counsel

(General Legal Services)

Elliot M. Carlin

Assistant Regional Counsel

(Large Case)

Bernard Goldstein

District Counsel and

ChiefAppeals (ffices:

Albany, NY

Counsel- Gerald A. Thorpe

Boston, MA

Counsel- Gerald J. O'Toole

Appeals- Linda M. Gerrard

Brooklyn, NT

Counsel- Martha Sullivan

Buffalo, NY

Counsel- John D. Steele

Appeals- Joseph Grairn

Hartford, CT

Counsel- Powell W. Holly, Jr.

Appeals- Joseph F. Scher-zinger

Long Island, NY

Appeals- Murray Navarro

New York City, NY

Counsel- Joseph F. Maselli

Appeals- Edward M. Schaeffer

62
............................................................................................................................................................................................................. .................................. ..............................................

SOUTHEAST REGION

Regional Counsel

William A. Goss

Regional Director ofAppeals

Richard E. Foley

Deputy Regional Counsel

(Criminal Tax)

Stephen J. Waller

Specia7t Lffigal bt Non Ass4istant

(Criminal Tax)

Stephen J. Waller

Deputy Regional Counsel

(General Litigation)

Ronald P. Campbell

Deputy Regional Counsel

(Tax Litigation)

Roy L. Allison

Assistant Regional Counsel

(General Legal Services)

Harry G. Mason

Assistant Regional Counsel

(Large Case)

Donald W. Williamson

District Counsel and

ChiefAppeals Offices:

Atlanta, GA

Counsel- Dean R. Morley III

Appeals- Charles R. Barnes

Birmingham, AL

Counsel- John B. Harper

Appeals- Robert D. Holt

Greensboro, NC

Counsel- Alan 1. Weinberg

Appeals- Larry L. Davis

Jacksonville, FL

Counsel- Benjamin A. de Luna

Appeals- Christine Havels

Miami, FL

Counsel- David R. Smith

Appeals- Steven D. Herscovitz

Nashville, Tv

Counsel- Jaynes E. Keeten, Jr.

Appeals- Louie C. Mays

New Orleans, LA

Counsel- Louis J. Zeller, Jr.

Appeals- Sandra T. Freeland

Tampa, FL

Appeals- William E.

Oppenheim, Jr.

SOUTHWEST REGION

Regional Counsel

Roger Rhodes

Regional Director ofAppeals

Claude C. Rogers, Jr.

Deputy Regional Counsel

(Criminal Tax)

Carleton E. Knechtel

Deputy Regional Counsel

(General Litigation)

Vacant

Deputy Regional Counsel

(Tax Litigation)

Gary A. Benford

Assistant Regional Counsel

(General Legal Services)

Gary A. Anderson

Assistant Regional Counsel

(Large Case)

Rebecca W. Wolfe

District Counseland

ChiefAppeals Offices:

Alburquerque, NM

Counsel- Harry Beckboff

Austin, TX

Counsel- Lewis J. Hubbard, Jr.

Appeals- Frederick R. Box

Dallas, TX

Counsel- William F.

Hammack Jr.

Appeals- Elaine C.

Wedgeworth

Denver, CO

Counsel- Martin B. Kaye

Appeals- Dwight M. Sumner

Houston, TX

Counsel- Harold Friedman

Appeals- William C. Reitary

Oklahoma City, OK

Counsel- Michael J. O'Brien

Appeals- Brian W. Haley

Phoenix, AZ

Counsel- David W. Otto

Appeals- Darrell P. Ladmirault

Salt Lake City, UT

Counsel- Marion K. Mortensen

Appeals- Robert B. Stipek

WESTERN REGION

Regional Counsel

Benjamin C. Sanchez

Regional Director-ofAppeals

Donato Cantalupo

Deputy Regional Counsel

(Criminal Tax)

William K. Shipley

Deputy Regional Counsel Z3-

(General Litigation)

Perry T. Foster

Deputy Regional Counsel

(Tax Litigation)

Peter D. Bakutes

Assistant Regional Counsel

(General Legal Services)

Albert H. Larson III

Assistant Regional Counsel

(Large Case)

Robert E. Casey

(' ~- mid

ChiefAppeals Offices:

Anchorage, AK - Counsel- Jerry L. Leonard

Boise, ID

Counsel- Blake W. Ferguson

Glendale, CA

Appeals- Ann B. Mitchell

Honolulu, HI

Counsel- Williarn A. Sims

Laguna Niguel, CA

Counsel- Harry M. Asche

Appeals- Raymond E. Gump

Las Vegas, NV

Counsel- Milton B. Blouke

Appeals- Harold Ward

Los Angeles, CA

Counsel- Vacant

Appeals- Bruce Coyne

Portland, OR

Counsel- Wayne R. Appleman

Appeals- George F. Kaufer

Sacramento, CA

Counsel- Steven J. Mopsick

Appeals- Oris McMillian

San Diego, CA

Counsel- Valerie K. Liu

Appeals- Charles E. Mason

San Francisco, CA

Counsel- J. Richard Murphy, Jr.

Appeals- Chris Beek (acting)

San Jose, CA

Counsel- Catherine Lau

Appeals- Jackson S. Kohagura

Seattle, WA

Counsel- James W. Clark

Appeals- Jerald M. Peterson

Thousand Oaks, CA

Counsel- James A. Nelson

63
Map and State Office Directory .................................................................................................................................................................... ................................... .................................................................... ..............

Alabama (SE)

ell ,e4

411

Birmingham

Alaska (W)

Anchorage 0 0

Arizona (SW)

Phoenix 0 0

Arkansas (SE)

Little Rock 0

California (W)

Sacramento 0 0

San Francisco 0

Fresno

San Jose 0 0

Los Angeles 0 0

Laguna Niguel 0 0

Illinois (MW)

Chirp-go

Springfield

Indiana (C)

San Diego 0 Indianapolis

Colorado (SWI

Denver 0 0

Connecticut (NA)

Hanford 0 0

Delaware (MA)

Wilmington 0

District of Columbia (National office)

Commissioner and Chief Counsel

Florida (SE)

Jacksonville 0 0

Ft. Lauderdale 0

Miami 0

Iowa (MW)

New Jersey INA)

0 0 Southwest

Minnesota (1111111)

es M oi nes

Kansas (SWI

Wichita 0

Kentucky (C)

Louisville 0 0

Louisiana (SE)

New Orleans 0 0

Maine (NA)

Augusta 0

St. Paul 0 0

Mississippi (SE)

Jackson

Missouri (MW)

St. Louis 0 0

WY

Chey

cc

Albuq

0,

0, le

41 41

Newark 0 0

Kansas City 0 New Mexico (SW)

Montana [MW)

Maryland (MA) Helena 0 0 New York (NA)

Baltimore 0 0 1

Georgia (SE) Nebraska (MW)

Atlanta

Hawaii (W)

Honolulu

Idaho (W)

Boise

Massachusetts (NA) Ornaha 0 0

Andover Brooklyn 0

Boston

Michigan (C)

Detroit

Detroit Computing Center

~01~1 ~p'3

Nevada (W)

Albuquerque 0 0

Manhattan (NYC) o

Odgen e

S~lt L*ake City

LIT

AZ

oPhoenix

0 0 0 0

Albany 0 0

Buffalo 0 a

Las Vegas 0 0 Brookhaven 0

New Hampshire (NA) North Carolina (SE)

Portsmouth 0 Greensboro 0 0

0 Region (SW)

64
.................................................. ............................................................................................................. ..........................................................................................................................

e Oklahoma City

OK

IN

Dallas

IndiApolis

*Louisville KY

TX

0 0

Mid-Atlantic

Region (MA)

Austin Houston

0

e Little Rock

AR

LA

Memphis

MS

*Jackson

New Orleans

TN

&

Birmingham

AL

Central

Region (C)

MI

Detroit 0

oAllanta

GA

Jacksonville e

Fl.

Hartford Providence

, 11 &

r Ap d

ING *Greensboro

eColumbia

SC

Southeast

Region (SE)

eXt. Lauderdale

Burlington 0

....... ....

d

4' Virginia (MA)

01, Tennessee (SE) Richmond 0 0

North Oakorta (MW) Pennsylvania (NIA)

Fargo 0 Philadelphia 0 0

Nashville

Memphis

Pittsburgh 0 Texas (SW)

Ohio (C)

Cleveland Rhode Island (NA)

Cincinnati 0 a 0 0

Houston

Providence 0

Austin 0

Parkersburg 0

Oklahoma (SW) South Carolina (SE) Austin Computing Cen!er Wisconsin (MW)

Oklahoma City Columbia 0 Milwaukee 0 0

Utah (SW)

Oregon (W) South Oakota (MW) Sall Lake City Wyoming (SW)

Portland Aberdeen 0 Ogden 0 Cheyenne

North Atlantic

Region (NA)

Dallas 0 0

New York City:

Manhattan

Brooklyn

Brookhaven

Vermont (NA)

Washington (W)

Seattle 0 0

West Virginia (C)

Martinsburg Computing Center

0

65
IRS Organization Chart

Department of the Treasury

Chief Inspector Commissioner

Deputy Commissioner

TAssistants to the Commissioner

Equal Opportunity

Legislative Liaison

Public Affairs

Quality

Taxpayer Ombudsman

I

Chief Financial Officer

Assistant Commissioner

illuman Resources & Support)

I

Assistant Commissioner

(Finance) / Controller

Assistant Commissioner

(Planning & Research)

Assistant Commissioner

(Procurement)

i

Chief Operations Officer

Assistant Commissioner

(Collection)

Assistant Commissioner

(Employee Plans and Exempt

Organizations)

Assistant Commissioner

(international)

Assistant Commissioner

(Taxpayer Services)

Appeals

Technical and legal services

Assistant Commissioner

(Criminal Investigation)

Assistant Commissioner

(Examination)

Assistant Commissioner

(Returns Processing)

Field Organization

Regional Inspectors (7) Regional Commissioners (7)

District Directors (63) Service Center Directors 110)

Chief Counsel

Deputy Chief Counsel

I

Chief Information Officer

Assistant Commissioner

(information Systems

Development)

Assistant Commissioner

(information Systems

Management)

Regional Counsel (7)

66
Statistics

of Income

Library

ISBN 0-16-041797-X

1111111111

9 780160