I = PUBLICATION NO. 55

INTERNAL REVENUE SERVICE 9 UNITED STATES TREASURY DEPARTMENT

annual

report
88th Cong,,&,, 2d S-ion H,u,, Doc-nt N,. 256

COMMISSIONER OF INTERNAL REVENUE

1963 annual report

FOR THE FISCAL YEAR ENDED JUNE 30, 1963

INTERNAL REVENUE SERVICE - UNITED STATES TREASURY DEPARTMENT
NO TES: All yearly data are on a fiscal year basis, unless othemise

specified. For example, data headed "1963" pertain to the fiscal year ended

June 30, 7963, and "yuy 1" inventory items under this heading reflect

inventories as ofyuly 7, 7W.

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

the totals which are based on unroundedfigures.

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

. Washington, D.C., 20402 - Price 75 cents

I

COMMISSIONER CAPLIN AND 141S ADVISORY GROUP (see p. 59)

This Committee which represents professional and other private groups concerned

with Federal taxation provides constructive criticism of Internal Revenue policies

and procedures and suggests ways in which the Service can improve its operations.
U. S. TREASURY DEPARTMENT

Honorable Douglas Dillon

Secretary of the Treasury

Washington, D. C.

Dear Mr. Secretary:

61-4sla,704 0/ dMand/ /~Ovrwair

WASHINGTON 25, D. C.

Sepjbember 27, 1963

Attached is the annual report of the Internal Revenue Service for fiscal

year 1963 describing its 1OCrth year of operations. Noteworthy is that gross

Internal Revenue receipts surpassed the $100 billion mark for the first time

in history--reaching a total of $105.9 billion. This figure reflects the

vitality of our free society, the growth of our economy, and the high level

of tax compliance of American citizens. It is a testimonial to the honesty

and integrity of our people, as wen as their industry and creativity.

Almost every one of our activities set new records of achievement. But,

as you well realize, raw statistics do not tell the full story. Just as

important as our direct enforcement results were the expansion of our compliance

efforts and the improvement reflected in compliance patterns. The favorable

public response and the results achieved to date confirm the soundness of our

1961 decisions to focus our efforts on improving voluntary compliance.

We have continued to emphasize professional standards throughout the

Service--in our recruiting and training, promotion criteria, rules of conduct,

and in the day-to-day performance of our various duties. Integrity and fair

dealing have become guiding principles, and emphasis has been placed upon

courtesy and a commonsense approach in our contacts with taxpayers. In striving

for a professional level of performance, we have also sought a higher quality of

work throughout Internal Revenue. This is being done not for quality's sake

alone, but because we believe it will contribute to better taxpayer compliance

and to improved direct enforcement results.

We have also kept in the forefront a vigorous enforcement program. A

large part of our efforts continues to be placed on curbing tax abuses and

excesses, and in participating in the organized crime drive in cooperation with

the Attorney General. We are examining a greater number of returns of exempt

organizations and are giving special attention to their problems. Our examination of tax returns of U.S. citizens and U.S. businesses operating in foreign

countries is also being expanded, and we are reshaping our entire foreign

program to meet the new administrative responsibilities created by the Revenue

Act of 1962.

1963 marked another step forward in converting Internal Revenue operations

to an automatic data processing system. The Atlanta Regional Service Center is fully operative, and the computer center in Martinsburg, West Virginia, is

building up its nationwide master file record for both business and individual

accounts. The Philadelphia Regional Service Center began processing business

returns in-January 1963; the Cincinnati and Dallas Regional Service Centers will

begin in January 1964; and in January 1965 the remaining regions will enter the

system when our existing three area service centers are converted to ADP. In

addition, in 1966 we plan on opening the IRS data center in Detroit, Michigan,

to relieve regional service centers of processing activities not directly related

to the AICP master file--for example, payrolls, operating reports, and statistical

data for the entire Service.

You know of the emphasis we have been placing on equal employment opportunities for every citizen, regardless of race or religion. A steady rise continued

throughout the year in minority group employment, with increases occurring at all

grade and salary levels. Positive steps were taken to assure equal rights and

opportunities to incumbents as well as to prospective employees. In addition to

broadened job opportunities in general, minority group members now occupy technical positions in almost every area of the country. Of great import was the.

accomplishment of these gains without giving preferential treatment or interfering

with the merit system.

Finally, I would like to mention our management improvement program which

set an all-time record this year with annual recurring savings of more than $11

million. Improvements adopted will result in more leffective-deployment of manpower, better use of new mechanical and technical equipment, streamlining

training programs, and modernizing work techniques.

Most significant was the decision to realign Internal Revenue districts and

regions, which I believe will yield a variety of benefits for many years to come.

This was recommended by our Committee on Resources Utilization, but would not

have become a reality without your wholehearted approval and support. Not only

does the realignment permit the channeling of ravings into two vital areas--

taxpayer services and assistance as well as enforcement--but reducing executive

and administrative overhead will allow operational efficiency by improved lines

of communication and authority.

The President has emphasized the need for "increasing the productivity of

the Federal work force" and has made it clear that this is "urgent national

business." The size and scope of Internal Revenue's operations, in concert with

a constantly expanding workload, make it imperative that we respond fully to

the President's direction and seek further economies to free resources for frontline work. I sm confident that our efforts in fiscal 1964 will be as rewarding

as our accomplishments were in 1963.

r4'-'7 ~01-

Commissioner of Internal Revenue

iv
LETTER OF TRANSMITTAL

........

COMMISSIONERS OF INTERNAL REVENUE..

PRINCIPAL OFFICERS OF THE INTERNAL

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

CHART OF INTERNAL REVENUE SERVICE

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

MAPS OF INTERNAL REVENUE REGIONS AND

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

REPORT ON OPERATIONS

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

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

Taxpayer publications . . . : .

Public information program . . . . .

Teaching taxes program . . . . . .

Taxpayer assistance program . . . .

Tax return forms program . . . . .

Regulations program . . . . . . . .

Depreciation . . . . . . . . . . .

Internal technical development and

guidance . . . . . . . . . . . .

Tax rulings and determination letters .

Chapter 2-INTERNAL REVENUE COLLECTIONS

AND REFUNDS . . . . . . . . . . . .

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

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

Employment taxes . . . . . . . . .

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

Estate and gift taxes . . . . . . . .

Net budget receipts . . . . . . . .

Internal revenue refunds . . . . . .

Chapter 3--RECEIPT AND PROCESSING OF RETURNS AND RELATED DOCUMENTS . . . .

Number of returns filed . . . . . . .

Information returns . . . . . . . .

Service center functions . . . . . . .

Carryback allowances . . . . . . . .

Automatic data processing . . . . . .

Chapter 4-ENFORCEMENT ACTIVITIES...

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

Mathematical verification . . . . . .

Examination program . . . . . . .

Appeals . . . . . . . . . . . . . . Overassessments reported to joint Committee . . . . . . . . . . . . .

Civil litigation . . . . . . . . . . .

vi

TABLE

Pii~e Page

IV Delinquency investigations and delinviii

quent returns.......... 22

Tax fraud investigations....... 22

Cases involving criminal prosecution. 23

Ix Summary of additional tax from direct

xiv

enforcement . . . . . . . . . . . 24

Taxpayer delinquent accounts . . . . 25

Workflow in the Service and Courts . . 26

Offers in compromise . . . . . . . . 27

Collection litigation legal services . . . 28

Federal-State cooperation . . . . . . 28

Informants' rewards . . . . . . . . 28

Alcohol and tobacco tax enforcement . 29

Firearms program . . . . . . . ... 29

Chapter 5-SUPERVISION OF THE ALCOHOL

AND TOBACCO INDUSTRIES....... 31

General . . . . . . . . . . . . . 31

Authorization of industry operations . . 32

On-premises supervision . . . . . . 32

Inspection of establishments . . . . . 32

Chemical analysis and research . . . 33

Chopier 6-LEcISLATivE ACTIVITIES.... 34

General . . . . . . . . . . . . . 34

Legislative program . . . . . . . . 34

Legislative assistance . . . . ... . . 34

Legislation enacted . . . . . . . . . 35

Legislation pending . . . . . . . . 36

Legislative implementations . . . . . 36

8 Chapter 7-LEGAL ACTIVITIES...... 37

8 Caseload disposal activity...... 37

9 Civil litigation

........... 37

9 Taxes in litigation......... 37

10 Personnel............. 38

10 Tort claims............ 38

11 Summary............. 38

11 Chapter 8-INTERNATIONAL ACTIVITIES

... 39

General . . . . . . . . . . . . . 39

Foreign tax assistance staff . . . . . 39

Tax conventions . . . . . . . . . . 40

International operations . . . . . . 40

Chapter 9-PLANNING ACTIVITIES..... 42

General............. 42

Short-range operational planning... 42

Long-range planning........ 43

Resources utilization........ 43

Systems review and coordination... 43

Current research program...... 44

Statistical reporting......... 45

Chapter 10-MANAGEMENT ACTIVITIES.

.. 48

21 General

.

............. 48

22 Major management improvements.. 48

0F

C0NTENTS

Personnel . . . . . . . . . . . . .

Training . . . . . . . . . . . . .

Facilities management. . . . . . . .

Fiscal management . . . . . . . . .

Inspection activities . . . . . . . .

Enrollment of practitioners and dis-..

ciplinary actions . . . . . . . . .

Advisory Group . . . . . . . . . .

Appendix . . . . . . . . . . . . . . .

Page

50

51

52

54

56

57

59

61

STAMP TAXES

Table

Page

STATISTICAL TABLES

COLLECTIONS, REFUNDS, AND RETURNS FILED

T.bk

1. Internal revenue collections by sources

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

2. Internal revenue collections by sources

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

3.

1

mernal revenue collections by sources .

4. Internal revenue collections by principal

sources, fiscal years 1940-1963 . . .

5. Internal revenue refunds including interest . . . . . . . . . . . . . .

6. Number of returns filed by internal

revenue regions, districts, States, and

other areas . . . . . . . . .

7. Internal revenue tax collected in Puerto * '

Rico on manufactured products

com- ing into the United States, by ohj

of taxation.......... ects . .

ALCOHOL AND TOBACCO TAXES

8. Establishments qualified to engage '11,

the production, distribution, storage,

or use ofalcohol and alcoholic liquors.

9. Establishments qualified to handle

tobacco materials, or to engage in

the production or exportation of

tobacco products and cigarette

papers and tubes . . . . . . .

10. Permits relating to distilled spirits.

under chapter 51, Internal Revenue

Code,1954 . . . . . . . . . . .

11. Permits for operations relating to

alcoholic beverages under the Federal

Alcohol Administration Act . . . .

12. Permits relating to tobacco under

chapter 52, Internal Revenue Code,

1954 . . . . . . . . . . . . . .

13. Label activity under Federal Alcohol

Administration Act . . . . . . .

77

85

86

88

90

91

92

92

92

92

93

93

14. Number of occupational tax stamps

issued, covering fiscal year 1963,

or portion thereof, by class of tax and

by internal revenue regions, districts,

and States........... 94

CASES RECEIVING APPELLATE CONSIDERATION OR IN LITIGATION

APPELLATE DIVISION

15. Receipts and dispositions of protested

income, profits, estate, and gift tax

cases prior to issuance of statutory

notice of deficiency (pre-90-day cases). 98

16. R~ccipts and dispositions of protested

income, profits, estate, and gift tax

cases in which statutory notices of

deficiency were outstanding (90-day

cases) . . . . . . . . . . . . . 98

17. Receipts and dispositions of income,

profits, estate, and gift tax cases

petitioned to the Tax Court (docketed

cases) . . . . . . . . . . . . . 99

OFFICE OF THE CHIEF COUNSEL

18. Processing of income, profits, estate, and

gift tax cases in the Tax Court . . . 99

19. Results obtained in income, profits,

estate, and gift tax cases disposed of in

the Tax Court . . . . . . . . . . 99

'20. Receipt and disposal of Tax Court cases

in courts of appeals and in Supreme

Court . . . . . . . . . . . . . 100

21. Receipt and disposal of suits filed by

taxpayers in Federal courts and

actions by the United States for

recovery of erroneous refunds . . . 100

22. Decisions of courts of appeals and

Supreme Court in civil tax cases . . . 101

23. Receipt and disposal of collection,

injunction, summons, and disclosure

cases . . . . . . . . . . . . . . 101

24. Receipt and disposal of insolvency and

debtor proceedings . . . . . . . . 101

25. Receipt and disposal of miscellaneous

court cases, lien cases not in court,

noncourt collection litigation cases,

and appeal cases . . . . . . . . . 101

26. Caseload report . . . . . . . . . . 101

COST OF ADMINISTRATION

27. Obligations incurred by the Internal

Revenue Service . . . . . . . . . 102

28. Quantity and cost statistics for printing. 103

93 INDEX . . . . . . . . . . . . . . . . 104

vii

i~
. C 0 M M I S S 1 0 N E R S 0 F INTERNAL REVENUE

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

Name

George S. Boutwcll ................

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

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

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

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

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

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

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

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

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

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

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

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

W. St. John Forman ...............

Nathan B. Scott ..................

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

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

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

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

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

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

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

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

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

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

Guy T. Helvering .................

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

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

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

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

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

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

Dana Latham ....................

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

State

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

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

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

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

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

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

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

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

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

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

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

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

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

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

West Virginia ............... :.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

From

July 17, 1862

Mar. 18,1863

July 1, 1865

Nov. 1,1865

Mar. 11,1869

Jan. 3,1871

Aug. 9, 1871

May 15,1875

Aug. 2,1876

May 21,1883

Mar. 20,1885

Mar. 21,1889

Apr. 19,1893

Nov. 27,1896

Jan. 111898

Mar. 1,1899

Dec. 20, 1900

June 5,1907

Sept. 1,1909

Apr. 28,1913

Sept.26,1917

Apr. 1,1920

May 27:1921

June 1,1929

Aug. 20,1930

June 6, 1933

Oct.' 9,1943

Mar. 1~1944

July 1,1947

Aug. 1,1951

Feb. 4,1953

Dec. 521955

Nov. 5,1958

Feb. 7,1961

TO

Mar. 4,1863

June 30,1865

Oct. 31,1865

Mar. 10,1869

Oct. 31,1870

Aug. 8,1871

May 14,1875

July 31~1876

Apr. 30,1883

Mar. 19,1885

Mar. 20,1889

Apr. 18,18.93

Nov. 26, 1896

Dec. 31,1897

Feb. 28, 1899

Nov. 27,1900

Apr. 30,1907

Aug. 31,1909

Apr. 27,1913

Sept. 25,1917

Mar. 31,1920

Apr. 11,1921

May 31,1929

Aug. 15,1930

May 15,1933

Oct. 8,1943

Jan. 22,1944

June 30,1947

July 31,1951

Nov. 18,1952

Oct. 31,1955

Sept.30,1958

Jan. 20,1961

In addition, the following were Acting Conamissioners from Aug. 16 to Aug. 19, 1930; Pressly R. Baldridge, of

during pcriods of time when them was no Commissioner Iowa, from May 16 to June 5, 1933; Harold N. Graves, of

holding the office; John W. Douglass, of Pennsylvania, Illinois, from Jan. 23 to Feb. 29, 1944; John S. Graham, of

from Nov. 1, 1870, to Jan. 2, 1871; Henry C. Rogers, of North Carolina, from Nov. 19, 1952, to Jan. 19, 1953;

Pennsylvania, from May I to May 10, 1883, and from May Justin F. Winkle, of New York, from Jan. 20 to Feb. 3,

1 to June 4, 1907; John J. Knox, of Minn-ta, from May 1953; 0. Gordon Delk, of Virginia, from Nov. I to Dec. 4,

11 to May 20, 1883; Robert Williams, Jr., of Ohio, from 1955, and from Oct. I to Nov. 4, 1958; Charles 1. Fox, of

Nov. 28 to Dec. 19, 1900; Millard F. West, of Kentucky, Utah, from Jan. 21 to Feb. 6, 1961.

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

PRINCIPAL OFFICERS OF THE INTERNAL REVENUE SERVICE

as of June 30, 1963

NATIONAL OFFICERS

OFFICE OF THE COMMISSIONER

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

Deputy Commissioner ......Bertrand M. Harding

Assistant to the Commissioner. Edwin M. Perkins

Assistant to the Commissioner ... Mitchell Rogovin

Assistant to the Deputy Commissioner

Albert W. Brisbin

Director of Practice ........... Thomas J. Reilly

Director, Foreign Tax Assistance Staff

L. Harold Moss

ADMINISTRATION

Assistant Commissioner .......Edward F. Preston

Executive Assistant ..........Donald C. Dawkins

Director, Program Staff.....Julius H. Lauderdale

Division Directors:

Facilities Management ......R. Bruce McNair

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

Personnel .................Albert J. Schaffer

Public Information ......Joseph S. Rosapepe

Trbining ..............George T. Reeves, Jr.

INSPECTION

Assistant Commissioner..... Vernon D. Acree, Jr.

Executive Assistant ...........Fred G. Robinette

Division Directors:

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

Internal Security ........ ~ . William A. Kolar

COMPLIANCE

Assistant Commissioner ........Donald W. Bacon

Executive Assistant ..........Charles G. Keebler

Division Directors:

Alcohol and Tobacco Tax ....Dwight E. Avis

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

Office of International Operations

Clarence I. Fox, Jr.

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

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

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

PLANNING AND RESEARCH

Assistant Commissioner ..... ...William H. Smith

Division Directors:

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

Systems Development .... George J. Leibowitz

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

Statistics ............. Ernest J. Engquist, Jr.

TECHNICAL

Assistant Commissioner ........Harold T. Swartz

Principal Assistant to the Assistant Commissioner

Joseph S. Zucker

Technical Advisor to the Assistant Commissioner

Arthur Singer

Executive Assistant ............ Henry Wood, Jr.

Division Directors:

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

Special Technical Services ..... Ned W. Arick

Technical Planning ........... Maurice Lewis

DATA PROCESSING

Assistant Commissioner .......... Robert L. Jack

Executive Assistant .............Garrett DeMots

Division Directors:

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

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

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

OFFICE OF THE CHIEF COUNSEL

Chief Counsel................ Crane C. Hauser

Associate Chief Counsels:

Administration ............. W. Harvey Wise

Litigation .................Rudy P. Hertzog

Technical ...............Herman T. Reiling

Assistant Chief Counsels:

Tax Court and Refund Litigation

Raymond F. Brown

Enforcement and Collection

E. Riley Campbell

Technical ..............Thomas McP. Davis

viii

ix
Principal Officers of the Internal Revenue Service-Continued

NATIONAL OFFICERS-Continued

OFFICE OF THE CHIEF COUNSEL-Continued

Division Directors:

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

Refund Litigation ........... Lester R. Uretz

joint Committee ........... W. Dean Mathis

Collection Litigation ... J. Walter Feigenbaum

Division Directors-Continued

Enforcement ............ William F. McAleer

Alcohol and Tobacco Legal. Robert B. Ritter

Legislation and Regulations

Samuel R. McClurd

Interpretative ............ Richard M. Hahn

REGIONAL AND DISTRICT OFFICERS

ATLANTA REGION

Regional Commissioner ...... William J. Bookholt

Assistant Regional Commissioners:

Administration .......... Burton M. Graham

Alcohol and Tobacco Tax

F. Dale McClanahan

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

Audit ...................Harold B. Bindseil

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

Data Processing .........Wayne S. Kegerreis

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

Diitrict Directors:

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

Birmingham, Ala ....George D. Patterson, Jr.

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

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

Jackson, Miss .............. James L. Enochs

Jacksonville, Fla ...... Laurie W. Tomlinson

Nashville, Tenn .........James M. Rountree

Regional Counsel ......... Henry C. Stockell, Jr.

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

Director, Atlanta Regional Service Center, Atlanta,

Ga ........................ Robert H. Terry

BOSTON REGION

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

Assistant Regional Commissioners:

Administration ..........Maurice J. Taggart

Alcohol and Tobacco Tax

George P. Rowland

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

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

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

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

District Directors:

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

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

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

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

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

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

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

Regional Inspector........ Emanuel M. Schuster

Director, Northeast Service Center, Lawrence,

Mass .................... William H. Weaver

CHICAGO REGION

Regional Commissioner .....Douglas L. Barnes

Assistant Regional Commissioners:

Administration .......... William F. Sullivan

Alcohol and Tobacco Tax

William A. Collawn

Appellate ................Wallace T. Morris

Audit ................ John W. Baudendistel

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

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

District Directors:

Chicago, III ............Eugene C. Coyle, Jr.

Detroit, Mich .............Raphael 1. Nixon

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

Springfield, III ..............Jay G. Philpott

Regional Counsel ...............David F. Long

Regional Inspector ..........William A. Costello

CINCINNATI REGION

Regional Commissioner ... * ...Ernest H. Vaughn

Assistant Regional Commissioners;

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

Alcohol and Tobacco Tax. . Henry R. Peterson

Appellate .............G. Waldron Snyder

CINCINNATI REGION-Continued

Assistant Regional Commissioners-Continucd

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

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

Intelligence ........... Thomas P. McGovern

District Directors:

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

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

Indianapolis, Ind .......Sterling M. Dietrich

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

Parkersburg, W. Va .......Nathaniel Looker

Richmond, Va ...... .. Arnbrose M. Stoepler

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

Regional Inspector........ Gordon M. Anderson

Director, Cincinnati Regional S

*

ervice Center,

Covington, Ky .............. Everett L. Meek

DALLAS REGION

Regional Commissioner ..........B. Frank White

Assistant Regional Commissioners:

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

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

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

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

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

Intelligence .......... William E. Beloate, Jr.

District Directors:

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

Albuquerque, N. Mex ....Clyde L. Bick(irstaff

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

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

New Orleans, La ............Chester A. Usry

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

Regional Counsel ..............J. Marvin Kelley

Regional Inspector ......... David 0. Lowry, Jr.

Director, Dallas Regional Service Center,

Austin, Tex ............../ ...Ervin B. Osborn

NEW YORK CITY REGION

Regional Commissioner .......Howard D. Taylor

Assistant Regional Commissioners:

Administration ........... Arthur J. Collinson

Alcohol and Tobacco Tax .... F. Virgil Welsh

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

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

NEW YORK CITY REGION-Continued

Assistant Regional Commissioners -Continued

Collection ...............Elmer H.Klinsman

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

District Directors:

Albany, MY ........ Edward J. Fitzgerald, Jr.

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

Buffalo, N.Y .................John E. Foley

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

Syracuse, MY..........Raymond H. Reichel

Regional Counsel ......... William V. Crosswhitc

Regional Inspector................. I ... Vacant

OMAHA REGION

Regional Commissioner .....Homer 0. Croasmun

Assistant Regional Commissioners:

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

Alcohol and Tobacco Tax ..... Edward J. Fox

Appellate ................... Vance N. Bates

Audit ........... : ......Robert J. McCauley

Collection ................ Clarence E. Raish

Intelligence .................Harold B. Holt

District Directors~

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

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

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

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

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

Kansas City, Mo ....... Edwin 0. Bookwalter

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

St. Louis, Mo .............James A. O'Hara

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

Wichita, Kans ............ Harry F. Scribner

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

Regional Inspector.......... Winslow B. Randall

Director, Midwest Service Center, Kansas City,

MO ........................Arnold S. Dreyer

PHILADELPHIA REGio-,

Regional Commissioner .......... Dean J. Barron

Assistant Regional Commissioners:

Administration ......... Robert D. McDowell

Alcohol and Tobacco Tax ..... Louis DeCarlo

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

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

xi
Principal Officers of the Internal Revenue Service-Continued U.S. TREASURY DEPARTMENT

REGIONAL AND DISTRICT OFFICERS-Continued

PHILADELPHIA REOION-Continued

Assistant Regional Commissioners-Continued

Collection .............. Edward J. Manning

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

District Directors:

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

Camden, Nj............William F. Culliney

Newark, Nj ........... Frank S. Turbett, Jr.

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

Pittsburgh, Pa ..............John 1-1. Bingler

Scranton, PEE ................Ellis R. Rogers

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

Regional Counsel ................ Cecil H. Haas

Regional Inspector................ Earl L. Fuoss

Director, Philadelphia Regional Service Center,

Philadelphia, PEE ...........Anthony L. Carrea

SAN FRANcisco REGION

Regional Commissioner ......... Harold Hawkins

Assistant Regional Commissioners:

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

Alcohol and Tobacco Tax ...... Isham Railey

SAN FltANcisco REc;ION-Continued

Assistant Regional Commissioners-Continued

Appellate ............Gardiner B. Willmarth

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

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

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

District Directors:

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

Boise, Idaho ............... Calvin E. Wright

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

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

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

Phoenix, Ariz ..............Wilson B. Wood

Portland, Orcg ........... Arthur G. Erickson

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

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

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

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

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

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

Director, Western Service Center, Ogden, Utah

Frederick W. Bearman

'...'.I.NIER

~

.......

7

ASSISTANT COMMISSIONER ASSISTANT

COMMISSIONER

(Ad.i.1dfl..)

tAl-l

-

ASSISTANT COMMISSIONER

(C-PIN-)

ASSISTANT COMMISSIONER

(D9, P,,,,,I.g)

ASSISTANT

COMMISSIONER

(PI-iq..d

ASSISTANT COMMISSIONER

(T.W'.1)

REG]OKAL(INSPECTORS Rvji'MIC'MMi'1-

(9)

Dirtid Dircc~.

(62)

P--

f7l

Inftrnal Reve- Service Oma tion

xii xhi
G~

Reliwarl Cammissioner aid District Director

D'Slud S Our C I.,

C:M"Pidel oll'altel

Retie.al Bandar

Diihict eaditivy

0 coramnsicar a( 1011rial Reidee

Current organization effective through December 31, 1963

Internal Revenue Service

C)

.""r *

x

I miuded In San Francl~ Reglon

Retired Boadul

puffict 8 ... dart

currearm" .1 [Mmul 111,1861

1, 1! ... I closisridde, did Dishid article?

11r;Irid ofticlu

Strike cold

x1final tuawer tiger

uio.l suel" Code,

Organization to be effective January 1, 1964 (see page 49)

Internal Revenue Service

9 Regions * 62 Districts

LONDON

MANILA

MEXICOCITY

OTTAWA

PARIS

SAO PAULO

LONDON

MANILA

MIYIC0 CITY

OTTAWA

PARA S

SAO PAULO
Comparative Highlights

Gross receipts

Refunds:

Number

Amount

Returns flied

Taxpayers assisted

Returns examined

Additional tax from enforcement

Delinquent taxes collected, total

Delinquent accounts

Trust funds In notice status

707-1510--632

1963

Millions

$105,925.4

40.7

$6.609.4

97.8

11.5

3.8

$2,243.4

$1,280.7

$1,093.0

$187.7

1962

$99,440.8

40.4

$6,303.0

96.5

11.2

3.5

$1,971.6

$1,255.2

$1,152.4

$102.8

Percent

of change

6.5

0.7

4.9

1.4

3.0

10.8

0.8

2.0

-5.2

82.6

1

11,;
INTERPRETATION AND COMMUNICATION OF TAX LAW TO TAXPAYERS

1j,

1

Interpretation

and Communication

of Tax Law

to Taxpayers

2

GENERAL

The objective of the Internal Revenue Service is

to administer the tax laws vigorously but also

reasonably. The confidence of the citizen in

reasonable, impartial, and honest administration

of the law is an American tradition which serves as

the underpinning of our unique self-assessment tax

system. To broaden voluntary compliance under

this system, it is incumbent upon the Service to

fully apprise taxpayers of their rights and obligations under the tax laws, and to accommodate

administrative procedures to the interests and

convenience of taxpayers. These aims are accomplished through a series of programs, including

preparation and distribution ofregulations, rulings,

tax forms, and instructions; publication ofnumerous

tax guides covering separate tax situations; dissemination of information to taxpayers by a broad

public information program through different

news media, and bya taxpayer assistance program

conducted in district and local offices.

TAXPAYER PUBLICATIONS

This is basically

a self-help program for taxpayers. In addition to providing instructions with

the tax return forms, the Service issues approximately 50 publications in plain everyday language

for the information and guidance of taxpayers on

practically all aspects of Federal taxation (see

page 62). Continuing the Service's "New Direction" for greater emphasis on voluntary compliance

through an informed taxpaying public, numerous

improvements and expansions of the program were

accomplished during the year and scheduled for

the near future.

Forty-one other taxpayer assistance documents

ranging in size from I to 24 pages were distributed

free to taxpayers. Distribution of the various

documents ranged from 1,000 to 110,000 copies.

Each publication contains detailed and easy to

understand explanations of the laws applicable toa

particular problem area. Objectives of this program are to expedite and increase the effectiveC

ness of our Taxpayers Assistance Program, and to

minimize the necessity for individual assistance by

Service personnel. The booklets are used as inserts by the National Office and by field offices in

replies to requests from taxpayers, and are also

available upon request in local offices of district

directors. They are also used as supporting

statements for adjustments made in revenue agents'

reports. These booklets are listed on page 63.

The Service conducted

a program of personally

delivering the "Mr. Businessman's Kit" to new

businessmen to acquaint them with their obligations under the Federal tax laws. Revenue officers

in conj.unction with their other duties delivered

107,000 of these kits during the year.

PUBLIC INFORMATION PROGRAM

General.-Utilizing the Centennial observance as

a point of interest, the Service conducted an accelerated public information program throughout

the year. Extended efforts were directed toward

increased public understanding of the Federal tax

laws and the rights and obligations of taxpayers.

In addition to the needs reflected by the areas of

automatic data processing and taxpayer assistance

in general, the liberalization of depreciation guidelines and the effect of the Revenue Act of 1962

created sharply increased demands for mass dissemination of information.

The keen public interest which developed in the

tax aspects of travel and entertainment expenses,

retirement plan contribution of self-employed persons, investment credit, foreign investment, etc.,

caused news media inquiries and requests to increase substantially. With the cooperation of both

print and broadcast media, the Service strengthened its program of information thereby contributing toward a better-informed public.

News Releases and Inquiries.-Reflecting the Service's growing public information effort, a record 97

technical-and 138 general news releases were issued

by the National Office during the year. In addition, suggested releases for local adaptation were

provided to field offices which, in turn, developed

releases for issuance to media in their areas.

More than 600 requests for information concerning speeches, Service publications and issuances

of various kinds, information about tax exempt

organizations, offers in compromise, and other

technical matters were answered. Approximately

30,000 inquiries were handled by telephone, by

letter, or through personal visits by representatives

of news media, national organizations, and field

offices. Many of these required extensive research,

and in some cases meant drafting background

material on which would be based feature articles,

radio and television scripts, and speeches.

Films, Radio, and Television.-A record number of

television spot announcements-reports indicate

blanket coverage by both network and individual

stations-brought information and tax hints to

taxpayers during the year, witha concentration of

scheduling during the individual income tax filing

season. An estimated audience of 64.5 million

viewers on television, in theaters, or in groups, saw

the Service's documentary films. These included a specially produced motion picture, "Then and

Now," which received wide exhibition in hundreds

of civic showings, as well as in theaters and on TV.

In addition,a set of3 films dealing with preparation of Federal tax returns, found ready acceptance. Dozens of radio spot announcements were

used by networks and individual stations. National Office officials as well as field officials made

appearances on numerous radio and television

programs providing tax information through interviews, panel discussions, and other means.

Other.-A new 301-page book, "The American

Way in Taxation," witha foreword by Commissioner Caplin, was published by. Prentice-Hall,

Inc. Much of the background material was

provided by the Service.

TEACHING TAXES PROGRAM

Public and private school and college participation in the "Teaching Taxes" program continued

to grow. More than3 million student handbooks

were distributed to approximately 23,000 educational institutions during the year.

Indicative of the widespread success of the Program was the survey finding that in the Omaha

Region more than 93 percent of all high schools

included the Program in their curricula. This

intensive coverage is largely the result of publicity

through exhibits at educational conventions and

visits to and correspondence with state and local

school officials.

3
ANNUAL REPORT ca CHAPTER ONE

TAXPAYER ASSISTANCE PROGRAM

NUMBER OF TAXPAYERS ASSISTED

Th-sod,

ladjAd..1 a

470

mistance L509

assistance

T.l.ph... 6.754

assist-, K'i , n7_`V1 ~ , ~-16.350

1963 Totals

MM VAAWff2iZiW1BIIII1M

A basic component of the Service's program of

fostering voluntary compliance is the Taxpayer

Assistance Program. Taxpayers are assisted by

specially selected individuals who have demonstrated their ttchnical proficiency and their ability

to deal effectively with the public.

During the filing period, 11.5 million taxpayers

received aid in preparing their tax returns, an increase of 331,000 over last year. Assistance furnished taxpayers by telephone rose from 6.3 million

in 1962 to 6.8 million in 1963. Taxpayers receiving individual assistance numbered 470,000

compared with 509,000 last year, but the number

furnished self-help assistance in 1963 (approximately 4.3 million) was substantially unchanged

from 1962.

Although the total number of taxpayers assisted

increased 3.0 percent over 1962, the number of

man-days expended on this program decreased 9.9

percent from 131,518 in 1962 to 118,546 in 1963.

This saving in time expended was made possible

by placing greater emphasis on assistance furnished

by telephone.

TAX RETURN FORMS PROGRAM

The Service found itself hard pressed to meet the

demands for improving designs and simplifying

many of the more than 250 return forms and instructions used in carrying out the tax program.

With the constant revisions required as a result of

new legislation and regulations, varying effective

dates as well as legislation currently pending in

the Congress, the Service was under a heavy burden

to complete its production schedules by the required target dates. As the number of returns

filed is approaching 100 million and the laws continue to become more complex, the drafting and

publishing of forms and instructions which will

accurately reflect all sections of the Internal

Revenue Code has become a massive undertaking.

Members of the Forms Committee, cognizant

of the impact of automatic data processing on the

design and use of tax return forms, visited service

centers and held conferences with ADP specialists

in order that problems involving processing of

data from the many forms would be minimized.

There was also close coordination with the Social

Security Administration and other Government

agencies as well as with State tax officials in matters

of mutual concern. Many suggestions received

from professional groups, the public, and Service

employees were evaluated and utilized.

New and Revised Tax Forms.-Several new forms

were designed as a result of legislative changes:

Among these were Form 3468, Computation of

Investment Credit, used to compute the credit

against tax for investments in certain depreciable

property, and Form 3520, United States Information

Return (With Respect to the Creation of or Transfers to Certain Foreign Trusts). Forms were

eliminated when possible or several forms combitted into one as in the case of Form 941, Employer's Quarterly Federal Tax Return. Forms

either new or containing significant changes are

listed on page 64.

Form 3435 was designed as a result of the enact

ment of Public Law 87-397 which requires recipients of dividends, interest, and other payments to

furnish identifying numbers to payers who are

required to report such payments to the Service.

Part 1 is used by the payer to obtain the payee's

number and Part 2 is a request for an application

for an account number by a payee to whom a number has not been assigned. Form 3468 was designed

to enable taxpayers to compute the credit allowed

against the tax for investments in certain depreciable property acquired after December 31, 1961.

Form 3491 was designed for the use of certain

consumer cooperatives desiring to obtain exemption

from the filing of information returns on Forms

1096 and 1099 provided by section 6044(c) of the

INTERPRETATION AND COMMUNICATION OF TAX LAW TO TAXPAYERS

Internal Revenue Code. Form 3520 was designed

by reason of the requirement under section 6048

of the Code that a grantor in the case of an inter

vivos trust, the fiduciary of an estate in the case of

a testamentary trust, or the transferor, as the case

may be, must file such return on or before the 90th

day after (1) the creation of any foreign trust by a

United States person or (2) the transfer of any

money or property to a foreign trust by a United

States person.

Of the forms revised significantly, Form 941,

which formerly consisted of 3 different types and a

separate Schedule A, was so designed that all

necessary information is contained in one form.

The format and content of Form 959 were completely revised to develop the additional information required by section 6046 of the Code.

Form 990-A was revised so that additional information can be made available to the public and

assist in disclosures of exemption abuses. Form

1041-A was made a duplicate form in order that

information relative to trusts claiming contribution

deductions under section 642(c) could be made

available to the public as required by section 6104

of the Code. Forms 1087, 1096, and 1099, information returns, were revised considerably to meet

the additional reporting requirements contained

in the Revenue Act of 1962 with respect to payments of dividends, interest, etc. A die cut was

added to the Form 1120 corporate package for use

in the Atlanta Region as a pilot project to test

the practicability for ADP purposes of having the

Service prcaddress the return by attaching a label

showing the name and address under which the

prior return was filed. Also drafted were a number

of sample forms and tax rate tables illustrating the

effects of proposed legislation.

REGULATIONS PROGRAM

General.-Fifty-three Treasury Decisions, 9 Ex.

ecutive Orders, and 44 notices of proposed rulemaking, relating to matters other than alcohol and

tobacco taxes, were published in the Federal

Register. These regulations were issued under

provisions of the Internal Revenue Code of 1954

as originally enacted, subsequent public laws, or

on the basis of an administrative determination.

Twenty-one public hearings on the provisions of

the proposed regulations, which were published

this year, were held in accordance with the provisions of the Administrative Procedure Act. Approximately 1,900 taxpayers or their representatives

participated.

The more important regulations, Treasury Decisions, and Executive Orders are described on

pages 64-66.

Alcohol and Tobacco Taxes.-Regulations in 26

CFR Part 198, "Production of Volatile FruitFlavor Concentrate," were modernized and reissued to provide simplified requirements for

qualification, construction, and operation of volatile

fruit-flavor concentrate plants. Regulations in 26

CFR Part 295, "Removal of Tobacco Products

and Cigarette Papers and Tubes, Without Payment

ofTax, for Use ofthe United States," were reissued

to provide specific standards under which tobacco

products and cigarette papers and tubes may be

removed without payment of tax for use of the

United States.

DEPRECIATION

Revenue Procedure 62-21, Depreciation Guidelines and Rules, released on July 12, 1962 (C.B.

1962-2, 418; also IRS Publications 456 and 457),

has redirected the emphasis of depreciation so as

to give greater effect to anticipated obsolescence

and less to the historical experience of taxpayers.

This move to liberalize the depreciation deduction

carries out the announced objective of the President

and the Secretary of the Treasury, and follows

intensive studies of the subject conducted by the

Treasury Department with the assistance and cooperation of Service engineers.

Instruction courses have been conducted to

familiarize field agents with the objectives and

application of the procedure and many inquiries

from taxpayers and from the field offices have been

handled by Service engineers. National Office

employees and field officials and employees have

been called upon to appear before many organizations and groups to explain the depreciation procedure and to answer questions.

Continuing studies are being conducted to* keep

the revenue procedure up to date with corrections

and clarifying statements when necessary. To

date there have been two amendments to the

revenue procedure and a series of clarifying

questions and answers have been released.

4

5
ANNUAL REPORT as CHAPTER ONE

INTERNAL TECHNICAL DEVELOPMENT

AND GUIDANCE

Tax Briefsfor Revenue Agents and Q#7ce Auditors.- .

"Tax Briefs" is issued every 4 weeks to revenue

agents and office auditors in field offices and to technical personnel in the National Office. It serves as

a convenient medium for keeping Service personnel

engaged in technical work abreast of the latest

technical developments with a minimum of time.

It permits them to readily identify those matters

which affect their particular areas of work and

mitigates the necessity for reading commercial letters and similar technical publications. It reports

currently, in digest form, selected court decisions,

published rulings, and other technical developmerits. All important favorable court decisions are

reported as well as important adverse decisions of

the Tax Court when acquiescence or nonacquiescence is announced. Also, important adverse

decisions of other courts may be included with a

cautionary statement regarding the Commissioner's position. To make it more convenient for

Service personnel to carry this publication with

them for reading at opportune times

'

its size was

changed during the past year from notebook to

pocket size.

Engineering Ciialor.-An engineering citator is

being prepared by the engitiecring branches as a

looseleaf compilation of annotations and citations

of published tax law precedents. It is designed

for use as a basic reference source on tax treatment

of engineering issues. The natural resouices section of the citator was released on April 15, 1963,

and other sections are in process of preparation.

The citator will be kept up to date with periodic'

supplements.

Engineering Area Field Conferences.-Four area

field conferences for engineers were held in cooperation with the Audit Division. All field engineers,

with rare exceptions, and other selected field

representatives attended one of the conferences.

These conferences provided a valuable forum

for the discussion and clarification of numerous

engineering issues, including intensive consideration of the Depreciation Guidelines and Rules as

established by Revenue Procedure 62-21.

These area field conferences were a substitute

for the Annual Engineering Institute held in

Washington in some prior years. These 3-day

conferences were held in Dallas from May 15

through 17, in San Francisco from May 20 through

22, in Chicago from May 27 through 29, and in

New York from June 10 throughel 2.

Annual Technical Review Institute.-This is a

seminar-type program which consists of a series

of tax articles discussing the more important developments in Federal taxation. Its purpose is to

give Service agents and other technical employees

the benefit of a detailed discussion of the more important and complex developments as soon as possible after they occur. Discussion topics for the

institutes are selected and written by experienced

technicians in the National Office, and are delivcred in the field by discussion leaders. The discussions for the 1962 institutes weredistributed tothe

field offices in October 1962. They reviewed many

difficult topics, such as "kickback" payments; depreciation on assets in year of sale; real estate investment trusts; collapsible corporations; and many

other developments of equal complexity. A compicte set of the discussions was furnished every

revenue agent for his guidance and information.

TAX RULINGS AND DETERMINATION

LETTERS

Tax Rulings.-During the year, 37,929 requests

from taxpayers for rulings and requests from field

offices of the Service for technical advice were

! rocessed in the National Office. These included

.54,967 requests which had been received from taxpayers or their representatives and 2,962 requests

from field offices. At the close of the year, 7,150

requests for rulings and technical advice were on

hand.

In connection with the processing of rulings and

technical advice, 11,350 formal and informal technical conferences were held with taxpayers and

their representatives.

An analysis of the rulings and technical advice

processed, by subject matter, follows:

Requests for tax rulings and technical advice processed

subject

Total_----------------------- ----------

Incomeam! ... nfit, taxes

a" ------

Error

..it .. n.ployrnwirl ~n;;

Eettit-dpHlIx.- ah~iirii, an _---_------ ---------- ------------

'rose. taxas--------

other excise taxes.... ---------------------------

Engineering questions (depreciation, tc.~

INTERPRETATION AND COMMUNICATION OF TAX LAW TO TAXPAYERS

Determination Letters.-During 1963, 11,602 de.

termination letters involving the initial qualification

or termination of employee benefit plans were

issued by district offices. The National Office

received on appeal 46 applications, of which 26

were decided for the taxpayer, 5 partially in his

favor, and 15 against the taxpayer. In addition,

district offices issued 5,199 determination letters to

organizations seeking to establish exemption from

Federal income taxes. Of this total, 328 detcrini,

nations were adverse to the organization.

The following table shows the types of determinations and benefit plans involved during fiscal

1963:

Determination letters issued on employee benefit plane and

exempt organizations

Initial cluslificallons:

Approved ------------- T-------

Clair Employ... par[!. pating

comes Total '"do'number p ........... employ

T-intifirens..._ ------------------

Closed without

mination letter...._ -----------

P.fitsharing

5,133

477 675

1,055:265

'2174

360

Pension .,

annuity

5,428

451 81

1,058: 7534

as. 71

386

Stock

bonus

4,871

328

1,102

Exempt

orinamur.ti.n,

6

480

14 021

F

3

Closing Agreements.-Closing agrccm n cases in.

volving the tax status of prospective transactions

are considered by the Tax Rulings Division of the

National Office. Two cases were received during

the year, 2 were closed and 21 are pending.

Eighteen of the pending cases are related and are

awaiting legal action on a key case.

Publication of Rulings, Procedures, and Announce.

ments.-Two hundred and fifty rulings and 40 procedures were published, as follows:

Revenue rulings and procedures published

Type

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

Incemetax----------------------------------------------------

Administrative and miscellaneous

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

M

A hot and tube,. taxes -------

er excise taxes.... ..........................................

Employment taxes,.----------------- -------------------

Enargitngri

ndc"lift "T".- I------------------------------------------------ ----------------------------- ------------

Number

290

127

25

1177

7I

2

The more significant rulings and procedures are

summarized on page 66.

In addition to notices with respect to proposed

regulations, 187 announcements of general interest

were published in the Internal Revenue Bulletin.

The more important ones are described on page

67.

issued. Nincty-eight technical information releases were

Thirteen announced the position of the

Service as the result of court decisions having

widespread effect on tax administration. See

page 68 for summaries of the more significant

releases.

The Cumulative List of Organizations described

in section 170(c) of the Internal Revenue Code of

1954, Publication No. 78, has been revised through

December 31, 1962. At the same time, a new

system has been established for issuing supplements

to this publication. They will be issued bimonthly

as separate pamphlets and will be on a completely

cumulative basis for each calendar year. The new

publication and the pamphlet supplements are

available for purchase by the general public.

Supplements to Publication No. 78 will not , be

duplicated in the Internal Revenue Bulletin.

Because of the heavy volume of printed matter

resulting from legislation enacted during the

Second Session of the 87th Congress, a separate

bulletin, Cumulative Bulletin 1962-3, was published to contain such matters, and is available for

purchase. It contains (1) a digest of internal

revenue legislation enacted from January through

December 1962; (2) Public Laws, or excerpts thereof, pertaining to internal revenue matters enacted

on or after May 24, 1962; (3) Committee and

Conference reports, or excerpts thereof, related to

those Public Laws; and (4) a topical index to the

provisions of those Public Laws.

The Service has reviewed its Revenue Rulings

and Procedures pertaining to tobacco products and

listed those which have been determined obsolete

(Rev. 62-172, CB 1962-2, 352).

6

7

Total

37,929

29 072

1: 239

718

2:

164

192

544

Tax.

,eye.,

r.

q

..at,

34,967

21

'321s

579

087

1:661

418

Field redunt,

2,962

1,069

20

139 1.117 5~i

126
INTERNAL REVENUE COLLECTIONS AND REFUNDS

Corp. tim, Individual

2

Internal Revenue

Collections

and Refunds

.6 INTERNAL REVENIJE COLLECTIONS

Employment

Billions of dollars

Estate

and Oft

taxes

Excise

tax. income nelinsim, is..

is.. is..

1963

Total,

1962

99.4

GENERAL

A record $105.9 billion was collected in fiscal

year 1963, an increase of $6.5 billion, over 1962.

This was the first year in which revenue collections

exceeded $100 billion. Collections from all major

sources were higher than last year. The increases

were: Income taxes $3.4 billion, 4.7 percent;

employment taxes $2.3 billion, 18.1 percent; estate

and gift taxes $0. 15 billion, 7.5 percent; and excise

taxes $0.66 billion, 5.2 percent.

There are definite indications that substantial

improvement in voluntary compliance contributed

to the sharp rise in internal revenue collections.

Service programs dealing with taxpayer information and assistance (including publications for

taxpayers) were expanded and improved. In the

enforcement area the number ofdelinquent returns

secured and the total amount of taxes assessed

were larger than ever before; greater care was

exercised in selecting returns, and a quality audit

was stressed and improved audit techniques were

applied in the examination program with the

result that recommended increases in tax liabilities

reached an alltime high. Preventive measures

were also taken to protect the revenue by pursuing

a more vigorous collection procedure for trust fund

accounts in notice status with a consequent 82

percent increase in collections from that source.

In addition, the conversion to Automatic Data

Processing had a salutary effect on taxpayers who

had not been measuring up to their tax responSibilities. During the year many taxpayers came

into district and local offices to voluntarily disclose

unreported income, pay prior year taxes, and state

that they wanted to get their taxes current before

ADP was fully implemented. These measures in

concert with a general improvement in economic

conditions were major factors underlying the $6.5

billion increase in receipts over 1962.

The increase in income taxes was the combined

effect of a $2.3 billion rise in individual income

taxes and a $1.0 billion rise in corporation income

taxes. The gain in individual income taxes,

36.1 percent of the increase in total collections,

reflected both greater voluntary compliance and a

continued rise in the national level of personal

income, particularly in wages and salaries. Thz4.9

percent gain in corporation income taxes resulted

in a new high for collections from this source, and

is attributed to improved voluntary compliance

and the increase in corporation profits in calendar

year 1962.

Employment taxes accounted for 35.4 percent

of the increase in total revenue which reflected not

only the. higher level of personal income, but

also increases in tax rates referred to below.

Refunds of all classes of taxes totaled $6.5

billion, an increase of $0.3 billion over fiscal year

1962. Gross collections less refunds were $99 4

billion in 1963, compared with $93.2 billion in

1962. The increase in net revenue was nearly

$6.2 billion, 6.6 percent.

A comparison of gross collections in 1963 and 1962

by principal categories is shown below. Internal

revenue refunds are compared by year and by

type on page 12.

Gross internal revenue collections

fin thousands of dollars. For details See table 3, p. 861

S....

Grand total -----------------------------

Income taxes, totaL ---------------------------

led Cor=tlo dual, total, . -------- ------------ -------------------- --------

Withheld other ................................ by employ- re -----------------

Employment taxes, total ------------------------

Old-mg. and disability insurance I- . ::-

Unemployment in imce ---------- : :"

Railroad retirement--------- -------------

Estate and gift t............. ---

Excise taxes, total.. ---------:~

Alcohol-----------------------------------

Too.=----------------------------------

Oth------------------------------ -------

1963

105,925,395

75,323,714

22 336 134

52:987: 581

38 718 702

14: 268: 878

15,004,486

13

'

494 379

948: 464

571,644

2 187 457

13:409: 737

3. 44 1 656

2,079: 237

7,888,844

1962

99, 440,839

71, 945,3D5

21 295 711

50:649:594

36 246 109

14:403:485

12,708,171

11

'

686 231

457: 629

564,311

2 035 187

12: 752: 176

3 341 282

2: 025: 736

7,385,158

I

G

uiym~lhylficn, .1. adjusted to exclude amounts transferred to the Government of

For details see table 1, p.,77 and !DOtnOte 3, p. 811.

I Estimrited-Collections of ind vidual Income tax withheld are not reported

separately from old-ale and disability insurance taxes on wages and ularl.s

Similarly, collections o individual income tax not withheld are not reported separately from old-ale and ifixatbfflt~ insurance taxes an self-employment income.

The amount of ol&ager and disabi try insurance tax MllectiORS Shown is based on

estimates made by the Secretary of the Treasury pursuant to the previsions of sec.

201 ablifa) of th

a Social

S-Ity Act .1 amended and in4tudes all old~afe and oil. ,y

in a.rane taxes. The estimates show~ for the 2 classes o individual

income tales were derived by subtracting the old-ale and disability insurance tax

estimates fmin the combined totals reported.

PuPiNote.-Calendat year figures by regions

'

districts States and other areas. for InPeeled types of taxes may be obtained from the'Public'finformation Division,

tornal Revenue ServWe, Washington, D.C., 20224.

INCOME TAXES

Corporation and individual income taxes together accounted for 71 .1 percent of total internal

revenue in 1963.

Corporation taxes comprised 29.7 percent of all

income taxes and 21.1 percent of all internal

revenue. Collections from this source in 1963

increased 4.9 percent, and set a new record. Rcfunds of corporation income taxes were $15.8

m1illi10 n less in 1963 than in 1962, the net effect of

a decrease of $80.8 million in refunds representing

tentative carrybacks of operating losses and a

$65.0 million rise in refunds due to excessive pre.

payments and regular adjustments. Grosscorpora.

tion tax collections less refunds (principal only)

re Ited in net revenue from this source of 321.6

billion in 1963 compared with $20.5 billion in 1962.

Individual income taxes accounted for 70.3

percent of all income taxes and one-half of total

internal revenue. The amount collected by with.

holding on salaries and wages was 6.8 percent

higher in 1963 than in 1962 and represented 73.1

percent of all individual income'taxes.

More than 96.8 percent of individual income tax

refunds were attributable to excessive prepayment

of tax, mostly in the form of overwithholding,

In 1963, refunds of excemive prepayment totaled

nearly $5.4 billion, 5.6 percent more than the

preceding year. Gross collections of individual

income taxes less refunds of excessive prepayments

resulted in a net revenue from this source of $47.6

billion in 1963 compared with $45.6 billion in

1962. Refunds of other individual income and

old-age and disability insurance taxes were approximately $0.2 billion in each year.

EMPLOYMENT TAXES

Employment taxes, which accounted for 14.2

percent of all internal revenue, increased 18.1

percent in 1963 and accounted for 35.4 percent of

the increase in total revenue.

Old-age and disability and survivors insurance

taxes, comprising 89.9 percent of total employment

taxes, rose $1.8 billion, 15.4 percent over 1962.

This results in part from the increase from Sy, to

7~,' percent in the combined rate on employers

and employees which became effective January 1,

9

--,I- ___
ANNUAL REPORT six CHAPTER TWO

1963. Although the combined rate increase was

only I percent, a difference of ly, percent actually

existed between the rates applicable to the last 6

months of this year (7y, percent) and the first 6

months of last year (6 percent). Unemployment

insurance taxes rose $0.5 billion, or 107.3 percent.

This increase was due primarily to the rise in the

tax rate to 3.5 percent on taxable wages paid during

calendar year 1962 from the 3.1 percent rate in

effect during calendar year 1961. Since the State

credit is 2.7 percent, the net Federal tax increased

from 0.4 percent to 0.8 percent. Collections under

the Railroad Retirement Tax Act increased slightly.

EXCISE TAXES

Excise tax collections, which represent 12.7 percent of total collections, increased $657.6 million,

or 5.2 percent in 1963; this is approximately the

same dollar amount of increase as in 1962. Depositary receipt purchases accounted for slightly

more than half of the total amount collected.

The Federal use tax on highway motor vehicles

amounted tojust under $100 million, 24.7 percent

more than the amount collected last year. Receipts

from the Federal tax on passenger automobiles,

chassis, bodies, etc., were up $259.1 million, or

19.9 percent.

The excise tax on transportation of persons was

repealed effective November 16, 1962, except the

tax on air travel which was reduced to 5 percent.

Collections from this source dropped $28.8 million

or 11.0 percent, to $233.9 million.

Refunds of Federal excise taxes dropped slightly

from $218.0 million in 1962 to $215.6 million in

1963. Gross collections less refunds increased from

$12.5 billion in 1962 to $13.2 billion in 1963, a rise

of 5.3 percent.

ESTATE AND GIFT TAXES

Estate and gift taxes combined comprised 2.1

percent of total internal revenue. An increase of

$152.3 million, 7.5 percent, occurred in 1963.

Estate taxes, which accounted for 90.1 percent of

the estate and gift tax total, rose $175.4 million.

This increase more than offset a $23.1 million

decrease in gift taxes. Gross collections of estate

and gift taxes less refunds amounted to nearly $2.2

billion in 1963 compared with $2.0 billion in 1962.

NET BUDGET RECEIPTS

SOURCE OF BUDGET DOLLAR - 1983

Net Budget Receipts $88.4 billion

Indivldual Income Taxes

55.1%

Corporation Income Taxes

25.0%

Excise Taxes 11.5%

Estate and Gift Taxes 2.5%

Customs 1.4%

Miscellaneous 4.5%

INTERNAL REVENUE COLLECTIONS AND REFUNDS

"Net budget receipts" represents the amount of

total collections by the Federal Government which

is available to finance the many operations and

programs included in the President's annual

budget. To arrive at net budget receipts, gross

collections of internal revenue, customs duties, and

receipts from miscellaneous sources are reduced by

transfers to trust fund accounts, refund of receipts,

and interfund transfers. The following table

reflects the source of gross receipts, deductions, and

net budget receipts:

Gross collections, deductions, and net budget receipts

[In thousands of dDillual

source I s- T u3t fund Refunds I Madura N i budget

.C.iPt.

~

-N. U-19IN11

ance

lots

Individual income taxes:

Wit he

It.

-------------- --------------------------------------------------- 38,718,702 -------------- -------------- ------ ------- --------------

Oth --------------------------------------------------------------- ------- 14,268,878 ----------- I -- ---------- - ............. -------------

Totel ------------------------------------------------------------------- 52,987,581 -------------- 5,399,593 ------------- 47,587.988

~orfxorafion infoone taxes. ---- -------------------------- ---------- 22,336,134 ------- ------ 757.234 -------------- 21,578.900

Enis. Is... :

Highway trust fund_-------------- -------------------------------------- 3 sll 111 3, 286,067 121 74

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

----- oth-f--------------------- -----------------------------------------------

,: 7: 925 ----- ~

-------

89: 8

74 ...... -------

Total -------------------------------------------------- --------------- 13,409,737 3,286,DG7 215.619 -------------- 9,908,051

Emilio= taxes:

0 Ind di,111 1ty in-am,------------------------ --------------------- 4 4 4

R.11-nd .V,,am.nt. . --------------------------------------- --------------

13, 8 ,379

571,644

13,3 4,954

571,535

139.425

109

------------ _

_------------

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

------------ :.-

Unemployment insuvance --------------------------------------------------- 948,464 945.125 31339 ----- w --------

Total ---------------------------------------------- _------------------ 15, 004,486 14.861,614 142,873 ........... .. ...... w -------

Estate and gift I-------------------------------------- I--------------- 2.187,457 ------------- 20,192 -------------- 2,167,265

otal Internal mvenue.---- -------------------------------------- 105 , 391

-

925

'Ri'_

:7F.718,117,112 !I 7,7112 1, 131

, it

24 212

O

Cu.

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

...

Minellamous receiph..-----------------------------------

'j44 2"24

f. 21 , s3.

208

_ ___ _

--- 35 (hh,

701 513,!_7

W

5

3;910;110

Total.----- __----------------------------------- _------------------- 111,590,141 18,147,602

~

6,571,300 513.397

l

.5.317,711

INTERNAL REVENUE REFUNDS

In 1963, refunds increased in number and in

amount. The number totaled 40.7 million, an

increase of 0.7 percent, and the amount, including

interest, was $6.6 billion, a 4.9 percent increase.

Interest allowed on all types of refunds was $73.9

million, an increase of $6.1 million, or 8.9 percent.

In 1963, individual income tax refunds resulting

from excessive prepayments comprised 93.9 percent

of the number and 81.0 percent of the total amount.

Corporation refunds accounted for one-fourth of

one percent of the number, and 12.2 percent of the

total amount refunded in 1963. There were about

1.4 million gasoline tax refunds to farmers, transit

systems, and users of nonhighway vehicles aggregating $125.7 million, a 4.6 percent decrease in

amount. The following table compares refunds in

the past 2 years, by type of tax:

10
ANNUAL REPORT * CHAPTER TWO

Internal revenue refunds, including interest

(F-efunde byieflum and dRA60,Ia. table 5, p. 901

Number - Amount refunded (Pfim,ifal Amount of interest included

Type of tax

no interest-thousimif do Ion) (thousand dollars)

1963 1962 1963 1962 1963 1962

Total refunds of Internal revenue t --------------------------- 1 40, 652, 377 40, 366, 231 16,609,442 6,302,993 73,931 67,868

Co:ration inco a taxes --------------------- ------ ID4,30

I 1" '38 " 9 1 '2 its1 ' '

47 7

,no

dual income and employment fares, total ---------------------- 139, 148, 679 38, 833: 821 15, 566 : 79 1 fi, 242: .5 24:331

: 1,

2M

p,y,,n

"Txl'* pr:

'

""in 'a - - - -- ---: % -------- ----- n ~.

tax an ;Isabill lty i

138, 175,964 37, 950, 210 15,353,389 5, 07[) Hs 4 295 n wren ce a- - -

GIs

r in it old-.& .

R 11 t i

9 96

94 ' 6

5

86014

209,

a

77

:3

167

7

17: 2g 40:895 i ret rement _------------

Uremployment insurance._------

102

22,639 23,51914

1

1,42-20

51

4,897

1

83

5

51

E 'fare t.n____. --------------- 17

'

5,638 21,080

' 0'3

1 51i Gift tax-..... ---------------------

1

7 3

5

'4

117 : -: Isl

.

222 E.ti,. Was' tat.I_ ----------------- ------------------------- 1,392,746 1.421,074 216 d70

9,

2 164 451 1,119

Alcohol taxes I.. -------------------------------------------- I 17

..

75 636 '3,fi - 1 9 Tobacco taxes I ........... ------------- -----------

M ' ' ;iiC:::::

1: its

2

is

4: 122

s

598

1

anufacturers and fetailem excise tariff, I -------_ 1,364,693

' 3'

4

's

131.087 35: 594 97 513

G:xb !,: used be Iir wh...... ----------

l

G , 1,339,275 .372 .7 103,655 107.171

so in nanhighway.. ---

:

22 605 19:37

1

12 76

It

24 575 --- -------------- Oth ..................... --------_-------- .

~

2:813 3,291

5:

355 3:848 513

All other excise taxes 6 ------------------------------

1

17,957 15,688 5,226 61900 3" 597

Gu- Figure. bar. not b... reduced to n!!ct reimbursement, from the Federal

tod-rij. and Urvi-s and Federal

D

shbifit~ Insurance Trust Funds arnounfinds

11inum,il 1 11r 12"~,131,193~o~gdl.$114916.366!,ODO in 962; from the Highwal Trust Fun

:1.

nif St

I no $111.303,001) in 1962; and mum the. Un

196Y

ant Trust Fund amounting D $3.097.000 in 1963 and $4,991,000 (,sinx.

I pit -

d;

I Net of 51,662 rdiffi-abl. checks totaling $2.799.000.

3 Includes refunds "not otherwise classified."

In'

as '

W11111III.,"d 1,larn

n,!'.'d,s ni'Zics. ' - -

_

all ~~,,d,' (rPW,,1nx I nit -han PI), cast isI stock, a n d

other excise is, re units.

*Los, than $500.

1 Revised.

12

3

Receipt and

Processing of Returns

and Related

Documents

62.5 63.7

NUMBER OF RETURNS FILED

A total of 97.8 million tax returns of all classes

were received. This was an increase of 1.3 million

or 1.4 percent over the number received in 1962.

The number of Forms 1040 and 1040A individual

income tax returns increased 1.1 million, or 1.8

percent over last year. Declarations of estimated

individual income tax numbered 6.1 million, a

decrease of I 11,000 or 1.8 percent from 1962.

The total of 21.1 million employment tax returns

was an increase of 208,000 or 1.0 percent over 1962.

Nearly one-half of the increase was in employers'

returns for household employees. Excise tax returns totaled 4.0 million, a decrease of 1.4 percent

from 1962. A comparison of the number of

returns filed in fiscal years 1963 and 1962 follows:

NUMBER OF RETURNS FILED

Millions

21.1 20.9

6.1 6.2 mea- L.r.. ", -

Individual an Decia- Partner. Corpore. Employ' Etain. it

it

"im,

of

ship tion ...1 .11 other

fiduciary efu tax mated

(Individual)

97.8

1963 Totats 1962

96.5

Number of returns filed, by principal type of return

[Figures in thousands. For details, see table 6, p. 911

Type of .turn

97,933 ,96,511

, 71,402

1963 1962

Grand total------------------------------------

Imsern. far' total-------------- -------------- -------

Individual and fiduciary, total I--------------------

Indfividual-cItIzens and resident aliens, total--

For.. 1040---------------- --------- _

Forms 1040A.-.. ------------------------

All other Individual ..it fiduciary --------------

luchunitkin, .1 estimated tax, total ................

I divi' ual. --------- ----------

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

Par murship -------------------------------------

Dialsoratitin Out ---------------- _ -------

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

Employment tax, total--------------------------------

Em,I.o, E , g: FF.,,- -------------

'I

no 9

p eye") ........

in Irloo.yders' Form 943 (agrictil tu ral am to oyees)....

Rai retirement, If Forms CT-I, CT-2..-----

terefirUnemployment nura.c.. Form ING..........

Gift t........

Excise tax, total --------------------------------------

0-o"M

lormil tax..............

For. 720 (ratal lots, an fact., -----------

Al. hot -_-_---------------------- a

Tabs -----------------------------------------

Gth---------------------------------------------

72,559

63,679

62,779

44,527

18,252

100

6',083 I`G

16

978

1,291

511

21,140

14,983

4,207

639

1, 2

288

79

100

3,954

1,276

2,27825

12

364

,62,487

,61,643

,42,593

, 19,050

944

6,211

994

1.232

479

20,932

14: al 903

10

642

23

1,258

73

911

4, D09

1

277

:

2

2 93

241

4

401

Revised.

Individual and corporation returns filed 1, %r"o.11.-I',,dud1.' llr,!,r Islands. form,

rly Included in other income tax

return', . , it in to

poration

and all other individual and fiduciary income tax returns.

13
ANNUAL REPORT as CHAPTER THREE

INFORMATION RETURNS

Over 327 million information returns were

received. Slightly under two-thirds of these were

Forms W-2 (employer's statements of wages paid

and tax'withheld) including copies filed by employers, and by employees as attachments to their

income tax returns. Forms 1099 (information

returns on payments of dividends, interest, and

various other items) accounted for one-third of

the information returns received. The remainder

included nearly 5 million Forms 1087 (Ownership

Certificates-Dividends on Stock).

A 4 percent decrease in total information returns

reflects a decrease in the number of Forms 1099

received in the last half of fiscal year 1963, due

to discontinuance of the practice previously permitted by the Service of filing such returns on a

quarterly basis.

SERVICE CENTER FUNCTIONS

The 3 area service centers and the Atlanta

Regional Service Center processed 57.5 million

individual income tax returns. This number

represents a decrease of 3.0 million returns, 5.0

percent, below the preceding fiscal year. The decrease was due substantially to the accelerated returns processing program maintained by area

service centers in the last half of fiscal year 1962,

which reduced the number of 1961 tax returns

carried over to the first half of fiscal year 1963 by

more than 2.6 million from the same period last

year. Of the returns processed this year, 49.2

million were 1962 returns filed during the 1963

filing period and 8.3 million were 1961 returns filed

during the 1962 filing period but processed after

June 30 of that year.

In addition, 4.9 million declarations of estimated

individual income tax were processed. Accounts

receivable were established for appropriate individual income and estimated tax returns. Area

service centers performed the mailing and delinquency check operations for all employers' returns

(Forms 940 and 941) for the district offices which

they service. The Atlanta and Philadelphia regional service centers performed all processing,

accounting, mailing, and delinquency check operations for the.following ADP business returns filed in

these regions: Forms 940, 941, 720, 1120, 1120ES,

7004, and CT-1 (Atlanta for the full fiscal year;

Philadelphia for the last half of the fiscal year).

Beginning January 1963, the Atlanta Regional

Service Center assumed responsibility for processing ADP individual income tax returns filed for

tax year 1962,' and declarations of estimated

individual income tax filed for tax year 1963.

The transfer of work from the area service

centers to regional service centers under the

automatic data processing program continued as

the mailing and delinquency check operations

related to employers' returns for the Philadelphia

Region were shifted from the Northeast Service

Center to the new Philadelphia Regional Service

Center. The processing of individual income tax

returns and declarations of estimated income tax

for the Atlanta Region was transferred from the

Midwest Service Center to the Atlanta Regional

Service Center during the second half of fiscal

year 1963.

From January I through June 30, 1963, the

service centers received a total of 57.2 million

individual income tax returns, or 91.7 percent of

the total filed. This was an increase of 1.4 million

or 2.6 percent over the revised total of 55.7 million

received in the same period last year.

CARRYBACK ALLOWANCES

There was a decrease in applications for tentative

adjustments of prior years' income taxes to give

effect to operating loss carrybacks. The decrease

reflects the net effect of fewer filings by corporations

and an increase in filings by individuals.

The number of applications adjusted decreased

2.9 percent and the dollar allowance decreased

nearly $0.1 billion, or 15.0 percent.

The number of applications pending was approximately the same as in 1962. A comparison

of the carryback applications received and adjusted for 2 years follows:

14

RECEIPT AND PROCESSING OF RETURNS AND RELATED DOCUMENTS

Receipt and disposal of tentative corryback applications

$let..

Pending July I ---------- ---------------------------_----------

Appliaten . ...read -----

Appliatems adjusted, tolsf.-------------------------------------- -------------------__---_

Allowed.. ------------- ------------------------------------

Disallowed..------------------------------------------------

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

Number

1963 1962

7 118

76,'663

70,624

7,157

r.a.-Not available.

AUTOMATIC DATA PROCESSING

Automatic machine processing of tax returns,

reported a year ago as being installed on a carefully

phased basis with major attention being given to

avoiding adverse effects on employees to be redeployed, is proceeding on schedule. The Atlanta

Regional Service Center, after one year of experience in the processing of business returns under the

master file concept, was expanded and took on the

more voluminous operation of processing individual

income tax returns in the past filing period. The

Philadelphia Regional Service Center successfully

undertook the processing of business returns in

January 1963.

Even in the short span of its operation, and 'with

its limited application, the system has demonstrated

its capabilities and worth in the way of protecting

the revenue and insuring fairer distribution of the

tax burden. This has been accomplished by

detecting failures to file required tax returns,

detecting instances of multiple filing of overpay6 530

73: 351

72, 763

7,118

1963

Amount (thousand dollar.)

Claimed

1962 1963

Adjusted

1962

48 133

565: 545

572.651

41,027

di

383

49, 277

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

53,880

679 010

684: 757

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

48,133

32,773

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

ment returns by the same taxpayer, and mechanically applying overpayments, otherwise refundable, against outstanding taxes due from the

claimants.

Plans for 1964 call for introducing the Dallas

and Cincinnati regions into the system. Service

centers for the two regions were activated in 1963

and will begin processing business returns underthe

master file concept in January 1964.

With a view to relieving regional service centers

of all processing not directly related to the master

file, a decision was made and approved to establish

an Internal Revenue Service Data Center in

Detroit. Its duties and responsibilities will include,

but not be limited to the preparation of (1) payrolls

and reports for the entire Service, (2) material for

the Statistics of Income, and (3) data for State

and local governments in accordance with the

reciprocal agreements for exchange of tax data

between such entities and the Service. The

Center will be operational in 1966.

15
ANNUAL REPORT 9 CHAPTER FOUR

acceptable solutions. Reactions of industry participants were favorable, resulting in establishment of

effective working relationships and dissemination

of tax information through trade publications.

Future meetings will be held at the National, regional, or district levels on an "as needed" basis.

Numerous conferences were held with taxpayers,

computer specialists, and professional organizations to develop guidelines for maintaining tax

records within data processing systems. In substance, the proposed guidelines will identify the

records that the taxpayers must maintain in order

that the Service can make a determination of the

accuracy of reported tax liability.

Classification and Selection of Returns for Examinalion.-An integral part of direct enforcement efforts

is a classification program to select for examination

tax returns having a high frequency of error (those

representing the greatest known areas of noncompliance).

To assure a well-rounded audit program, returns

are selected from each type and category ofreturns

filed. Of the 25.7 million income, estate, and gift

tax returns classified by district audit divisions,

about 3.8 million were selected for examination.

Further progress was made in programming basic

selection criteria into the ADP system.

NUMBER OF TAX RETURNS EXAMINED AND ADDITIONAL TAX AND PENALTIES RECOMMENDED

Number (Thousands)

1

963 3,849

Totals 1962 3.415

Amount (Millions of dollars)

2,160

84

Individual 3,495 839

income 3,120 W751

Corporation 48 1957

income 11,29

80

Estate and 30 302

gift 130 IF264

Excise and 75

employment 11,95

Number of Returns Examined.-During the year 3.8

million returns were examined, an increase of

10.8 percent over 1962. As a result of expanded

use of correspondence audit techniques, office

audits rose 420,000 to nearly 3.1 million and

accounted for all of the increase.

1

62

60

Field audits decreased 46,000, or 5.7 percent.

More thorough examinations embodying quality

audit principles resulted in an increase in the

time needed to complete the field examinations.

In addition to the number of returns examined,

909,103 returns were closed without an audit.

Number ci to x returns examined

[Figures in thousardsi

Total Field alldit L office audit

Type of return

1963 1962 1953 1962 1963 1962

Grand total ------- _--------------------------------- ------------- 3,949 3,475 760 us 3,069 2,668

In... to., total-------------------------- -------------- -------- -------- 3,644 3,249 $88 614 3,056 2,635

Corpo nation-.---------- _ ---------- _------------- ------------------- 148 129 147 127 1 2

Individual and fiduciary-------- -------------------------------------- 3,495 3,120 441 487 3.05 2,633

Estate and filit tax._ --_--------------------- ---------- ................... -------- ....... 30 , is30 27 21 3 3

Exxis. and employment t ------------------------- 175 "5 164 30 31

...

0

18

I Includes all examined exempt orlibrication returns.

ENFORCEMENT ACTIVITIES

Additional Tax and Penalties Recommended.-The

3.8 million examinations resulted in over $2.1

billion of recommended additional tax and

penalties, an increase of $275.8 million over last

year. This is the first year that recommended tax

deficiencies have exceeded $2 billion. The

amounts recommended exceeded those of the

previous year in every tax area except gift tax.

Additional assessments recommended on corporation income tax returns increased $147.6 million

and recommenclations on individual and fiduciary

returns were greater than those of 1962 by $88.6

million.

The average additional tax and penalties

Class of tax

Closed by audit divisions

Number

recommended per field examination increased

from $2,054 in 1962 to $2,531 in 1963.

Claims for Refund.-District audit divisions completed action on 348,921 claims for refund. Of

these, 137,867 were closed after examination and

211,054 were closed without examination. The

total amount claimed was $1,101 million of which

$152 million was allowed and $948 million

disallowed.

In addition to the number of claims closed by

the audit divisions 4,235 were protested and

transferred to the appellate divisions for further

consideration.

The following table shows the number and

amounts involved:

Claimed by

taxpayer

Total. ................ .............. _ ....

Individual income. ------------ --------------

Corporation E,W------ -----------------

Gift- .

------

Esda ------ -----

-----------

E

rrplDj;~W - ------------------------------- -----_1 .............

Claims for refund disposed of by district audit divisions

348,921

290 021

25~ 922

249

11"

3

3: 621'

1, 100,522

104 226

794: IS 553

':RN

111:

2'

,

711

152,082

72 014

64~ 551

1.471 28.

1: 073192

Disallowed

Overassessments of Tax Exclusive of Claimsfor Re.

fund.-Exclusive of claims for refunds, examination

of taxpayers' returns resulted in $163 million over.

assessment recommendations by district audit

divisions. The following table shows the amount

of overassessments recommended by tax area:

Overassontruments, of tax exclusive of claims for refund

Type of fee

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

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

Corporation t3tate_.: In ........ .................. ---------------

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

----:: ---------

Employment.----------- -- ------------ -------------------------------- - ---- ---- --------- -

Armhuntnac.

ornmended

(thousand delta.)

163,000

35 194

its: W

7. 33'

507

382

948.441

730~ 32 212 00

771

M.'1""112 980

Probested-transfierred to appellate 11V[SiOrul

Numb.,

Amount (thousand dollarx) .

of,:i..d by

.Pay.,

4,235

2

,

081

802

90

I

'a

54

53

1

55

119,468

11 307

101:378

31: 390 1

44

380

Recommended by audit

di,hilcm.

Allowed

29,562

281~036478

92

2i

Disallowed

10,243 73.

000

3,298

1,144

1,84

373

APPEALS

GENERAL

The appeals procedure of the Service provides

the taxpayer who does not agree with a proposed

adjustment to his tax liability with the opportunity

to promptly obtain an independent administrative

review of his case.

The appeals function is decentralized and opcrates at both district and regional levels. When a

taxpayer does not agree with the findings of the

examining officer he may request an informal

conference in the district director's office. If an

agreement is not reached at the district level, he

may ask that his case be considered by the appellate

division of the regional office. Conferences are also

available in the appellate division after the taxpayer's case has been docketed in the Tax Court of

the United States.
ANNUAL REPORT *

-CHAPTER FOUR

Agreed

Unagree over

assessment anti 537

claim reiection F629

Agreed

Defaulted

808

L!17 4 6

985

"944

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

Method of Disposal

BEFORE ISSUANCE OF STATUTORY NOTICE

PETITIONED TO

Agreed 4,407

4,682

Dismissed

or defaulted

Tried

on merits

19,760

Totals

STATUTORY NOTICE OUTSTANDING

1963

Thejurisdiction of both the audit division and the

appellate division extends to all internal revenue

taxes except those involving alcohol, tobacco,

firearms, narcotics, and wagering, and their jurisdiction applies to disagreements involving overassessments as well as deficiencies.

INCOME, PROFITS, ESTATE, AND GIFT TAXES

Cases not before the Tax Court (pre-90-day cases).-

When agreement is not reached between the Se:r%,-

ice and the taxpayer at the district level, the

director issues a preliminary notice, commonly

called a "30-day letter," informing the taxpayer of

the proposed determination of tax liability and advising him of his right to file a protest and request a

hearing in the appellate division. These cases are

referred to by the appellate division as "pre-90-

day cases." The processing of these cases by the

appellate division during 1962 and 1963 is summarized below. (For additional information, see

table 15, page 98.)

'1237

231

37

83

1

10,368

TAX COURT

1962

Appellate Division receipts and dispositions of protested

income, profits, estate, and gift tax cases prior to issuance

of statutory notice of deficiency (pre-90-day cons)

status

'=July I -------------------------- R -------------------------------- - ---- -

By sgreencent with reaper U .......... .1 any=g-sassappinit-ad c aIW ---rejWcij;;i:::::: -:-

states.. ---at statutory matices-4ransfarred to 90-day I ----------------- --------------------

Pending )up, 30---------------- --------------------_--

11,849

Number of or,.

1963

10 732 17:774

18.431

1!E

11 ' 537 849

3,467

12,653

1962

9 711 15:513

14,492

368 10'629

3,495

10,732

With pre-90-day case receipts being higher than

in the previous year, the,number of cases on hand

June 30, 1963, was also larger.

Casts not before the Tax Court (90-day cases).-A

statutory notice of deficiency is issued to a taxpayer if his case i; not settled at the district level, or

if he files a protest but no settlement is reached at

the appellate level during pre-90-day consideration.

This notice is frequently referred to as a "90-day

ENFORCEMENT ACTIVITIES

letter," because the taxpayer is allowed 90 days

from the date of the letter to petition the Tax Court

of the United States. The following table shows

the results of processing 90-day cases in the appellate division. (Additional details are shown in

table 16, page 98.)

Appellate Division receipts and dispositions of protested income, profits, estate, and sift tax cases in which statu.

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

Status

P:=I-to R lytall ------------------------------------------- ------------------ ---

Statutory pati.. latni.d by Appellate Drii,knn - by district :11-te-ral ...,ad Statutory during 90-day notices period issued

Disposed of. total ---------- -------------- ------------

By agreement with taxpayers -------------------------

By taxpayer default.-.----------- ------------- ___ By petition to the Tax Court-transferred to docketed

P.ndm'gtJ'u`n`,' - ------------------------------------------- 30-. ------------------------------- --------

Number of cases

1963

1,073 4,019

T34-8

671

1962

1.211 3,786

3,336

450

3,933 7,Z24

-808985

2,140

1,159

746 944

2,234

1,073

oil-ric. train preceding table is caused by cases being combined or split for the purpose of issuing the statutory notice. uses in transit, etc.

The number of 90-day cases petitioned to the

Tax Court after receiving appellate consideration

was lower than any year since 1953.

Cases petitioned to the Tax Court (docketed cases).-

The Tax Court of the United States is. an independent agency of the Government and has no

connection with the Internal Revenue Service.

In a case involving income, profits, estate, or

gift taxes a taxpayer may file a petition with the

Tax Court. asking for a redetermination of his

tax liability when he does not agree with a deficiency determined by the Service and included in

a 90-day letter. The Service refers to these cases

as "petitioned " or "docketed."

After a case has been docketed in the Tax Court,

a taxpayer may still discuss the possibilities of

settling his case with the Service regardless of

whether he has previously availed himself of conference opportunities with the audit division of the

district office, or with the appellate division at

the regional level. Settlement negotiations in

docketed cases may be conducted by the appellate

division at any time before the case is called for

trial by the Tax Court. Since a settlement at

this level requires concurrence of the Regional

Counsel he may also be represented in such

negotiations.

The following table shows the processing of

docketed cases. (For additional information see

table 17, page 99.)

Appellate Division receipts and dispositions of income. profits, estate, and gift tax cases petitioned to the Tax' Court (docketed cases)

Status

Pending July I ------ ................... ...............

Received, total,.--------------------------- ------------

Pritilkins, filed in recamse to- ADI$tllct di-Iln'statutary notices ----------- Parellate Division's statutory rofic~W__: ------

Disposed at, total -------------------------- _.......

BYy stipulated agreement with te.pay------------------ di-sul It

bet... by the Tax Court or taxpayer defau Tried the Tax Court on the merits---------------

Ptindaillum,30.........................................

Number at a...

1963

. :965 247

31:309434

5,581

14,407 237 937

8,631

1962

B, 957 4.752

2,657 2.095

5,744

4,692 231 831

8,965

..1 Differedes!nam.numbef shown as petitioned in preceding table Is caused by oudinit tstrict directors statutory notices considered by Appellate in 90-day stat,, 1. transit, W. il~'em'ce tram the numbershown Inthe praudingtableardin table 19, P. 99, is duo to cutoll date& in respective reporting systems.

The number of docketed case disposals exceeded

receipts for the fourth consecutive year, and the

number of cases on hand June 30, 1963, was lower

than any year since 1956.

EXCISE AND EMPLOYMENT TAXES

The 1,394 excise and employment tax case

receipts were about the same volume as last year.

There were 1,306 case disposals and 865 cases on

hand at the end of the year.

CLOSING AGREEMENT CASES

Final closing agreement cases relating to completed transactions are considered by the appellate

division. During the year, 72 cases were received

and 81 processed to a conclusion. There were 7

cases on hand at the end of the year. (Rulings on

proposed closing agreements involving prospective

tax transactions are discussed on page 7.)

OVERASSESSMENTS REPORTED TO JOINT

COMMITTEE

A total of 440 cases involving overassessments of

$344.0 million was reported to the joint Committee

on Internal Revenue Taxation in accordance with

20 x 21
ANNUAL REPORT air CHAPTER FOUR

the provisions of section 6405 of the Internal

Revenue Code of 1954 which requires a report to

the Committee of all refunds and credits of income,

war profits, excess profits, estate, or gift tax exceeding $100,000. These figures compare with 439

cases involving $238.2 million reported in the

preceding year.

CIVIL LITIGATION

Litigation Results.-The Supreme Court decided 9

tax cases, wholly sustaining the Government's position in 8 of them and deciding the ninth case partly

for and partly against the Government.

The circuit courts ofappeals decided 349 tax cases

(exclusive of bankruptcy, receivership, insolvency,

compromise, and liquor cases). The Government's

position was supported in 229 of these.

In most cases a taxpayer who has paid a disputed

tax can, if he wishes, sue for refund in the Court of

Claims or in a United States district court. This

year the district courts decided 166 cases for the

Government, 200 for the taxpayer, and 56 partly

for the Government and partly for the taxpayer.

The Court of Claims decided 34 cases for the

Government, 12 for the taxpayer, and 18 partly

for each.

At the close of the year 2,778 civil cases (principally* suits for. refund of taxes, other than those

relating to alcohol, tobacco, and firearms taxes,

but also including erroneous refunds, perpetuation

of testimony, and damage actions) involving tax

questions were pending in district courts, and 471

in the Court of Claims.

The Tax Court decided 293 cases in favor of the

Government, 109 for the taxpayer, and 159 cases

partly for the Government and partly for the

taxpayer.

For details as to civil litigation see page 37 and

tables 21 and 22 on pages 100-101. For descriptions of Supreme Court decisions incivil

tax cases

see pages 68 through 70.

Adverse Tax Court Decisions.-There were

published in the Internal Revenue Bulletin

acquiescences of the Commissioner in 82 adverse

decisions of the Tax Court and nonacquiescences

in 32 adverse decisions during the year. Acquiescences and nonacquiescences were announced as

to separate issues in 5 of these adverse decisions.

DELINQUENCY INVESTIGATIONS AND

DELINQUENT RETURNS

It was possible to devote more manpower to dclinqucnt returns work this year, and, as a result,

981,000 delinquent returns were secured reflecting

$186.6 million of previously unreported tax. This

was an increase of 46,000 delinquent returns and

$22.1 million over last year.

Delinquency investigations resulting primarily

from a check of office records of previously filed

returns constitute one of the major methods of detecting non-filers. This year over 1.7 million delinquency investigations were conducted, an increase of 17.1 percent over the record number of

1.5 million in 1962.

A special effort was made to achieve optimum

enforcement of the highway use tax through the

examination of both internal and external source

records. A record number of 140,000 delinquent

highway use tax returns representing 32 i .2 million

were secured.

Plans were developed and initial steps taken for

a nationwide survey of selected geographical areas

to ensure that proper special tax stamps are purchased for coin-operated amusement and gaming

devices with special emphasis upon "multiple odds"

pinball machines. The survey will be completed

by September 30, 1963.

In addition, in examining tax returns, district

audit divisions secured 61,000 delinquent returns

compared with 73,000 in 1962. Tax and penalties

on these returns amounted to $48.7 million, an

increase of 24 percent.

TAX FRAUD INVESTIGATIONS

The fraud investigation program in 1963 was

directed to increased realization of the overall

Service mission of encouraging and achieving

maximum voluntary compliance with Internal

Revenue laws by all taxpayers. Particular attention was given to areas of flagrant tax abuses

among all categories of taxpayers, with special

emphasis on ferreting out tax law violations in

situations involving political corruption and organized crime.

The Service continued its close coordination

with the Department of justice in its drive on

organized crime. Many tax investigations involving racketeers were initiated, and criminal tax

22

ENFORCEMENT ACTIVITIES

cases against several notorious racketeers were

successfully concluded. Among those prosecuted

for criminal tax violations were: Frank "Screw"

Andrews, Newport, Kentucky; Daniel E. Graham,

Jr., Fayetteville, North Carolina; Meyer Sigal,

Pittsburgh, Pennsylvania; and Joseph Conforte,

Wadsworth, Nevada.

Continued emphasis on the identification of cases

of substance and the maintenance of a balanced

enforcement program together with improved

utilization of special agent manpower resulted in

the completion of considerably more full-scale

investigations and in the initiation of a somewhat

greater number of preliminary investigations than

in the preceding year. Criminal prosecution was

recommended in more cases than in 1962, with the

increases in the fraud and wagering categories

more than offsetting the decline in prosecution

recommendations for coin-operated gaming device

violations.

A summary of investigations by special agents

follows:

Tax fraud investigations

Type 1963 1962

Grand total -------- _ ------------_--------_.---

Unnumbered (preliminary) Investigations, total ---------

Fraud---_-------------------- ------------------

Wagering-----------_ ---------------------- __,_

=ad gaming dark..........................

p

Numbered (full-scale) ---------------------------------------- investigations, total..................

Prosecution ....ended, total ------------ ___ ......

Fraud----- _ ---------------------------- ------

Wagering-------------------------------------

Coi-gent.d gaming darkas...... :: ........ :~::.

mi..l a... u ........... ------- - -------- - -

Prosecution not recommended, Intel_----------

14,521

7.9-73

a 590

1 804

304 175

13,698

0=2 9

8 342

1 547

228

112

The training program initiated in 1958 has now

provided all incumbent special agents with a

knowledge of new investigative techniques and

procedures through formal and on-the-job training.

To maintain a high level ofspecial agent proficiency,

the training program will be continued, to provide

basic classroom instruction and on-the-job training

for newly appointed agents and to afford refresher

and selected on-the-job training, as needed, for

experienced agents.

CASES INVOLVING CRIMINAL

PROSECUTION

Additional taxes and penalties of $121.9 million

were involved in cases received in the Chief

Counsel~s Office with recommendations of criminal

prosecution. This was an increase of$13.8 million

over the amount involved in the preceding year.

An analysis of criminal tax cases of all types

(other than wagering-occupational tax cases handled at the district level) flowing from the Assistant

Regional Commissioner, Intelligence, through the

Office of the Chief Counsel and the Department of

justice follows:

Receipt and disposal of criminal cases in Chief Counsel's

office

Status

3,648

72-08

1. 934 133

31.6

1, 44D

3,469

2,128

I

,

031

98

4

1,341

The Service continued to conduct nationwide

coordinated raids, as well as independent raids,

against violators of the wagering tax laws, making

raids at 696 locations throughout the country. As

a result, 939 persons were arrested and $377,000

in currency and 188 automobiles were seized. A

nationwide raid was also made against violators of

the coin-operated gaming device tax law. Simultaneous raiding action was taken in 174 cities

which resulted in the seizure of $25,000 and 772

coin-operated gaming devices for which the

occupational tax, at the rate of $250 per year, had

not been paid.

Pending July I I-----------------------------------------

Received, tot8l_ ------__.............. _._. ... __

With .copurnand.ti.mrs to, prosecution ... __ ..........

With requests for opinion, etc...... ..............__

Disposed of. totaL.------_.... .............

P sutim, of mul.m.d......... ...... _---

Department of Justice declined .......................

prosecutions_ ..... ..............................

0,P,in:ors delivered-.-.-....... _. -------- ........~:

A

. ,

cl.1i.91_ ...... _.... ........ ...........

Pending June 30 i~ ....................... ....... .......

1963

T 123

1,969

154

1,980

151

77

1,405

120

227

2,956

1962

I2,003-

1,7011 2 5

696

16577

1,143

03

-208

2,813

I Includes cases awaltinT action In Department .1 Justice exclusive of wagering

tax cases referred by Intel igence Division.

A total of 855 income and miscellaneous criminal

cases, with prosecution recommendations involving

831 prospective defendants were forwarded to the

Department of justice. Compared with last year

this was a decrease of 16.3 percent in the volume

of referrals. Indictments in such cases were down

2.3 percent and the total disposal of cases in those

categories in the district courts was increased 10.9

percent.

23
ANNUAL REPORT a. CHAPTER FOUR

In income, excise, and wagering tax cases reaching the courtroom, 1,117 defendants pleaded

guilty or nolo contendere, 176 were convicted

after trial, 73 were acquitted, and 230 were nolprossed or dismissed.

A comparison of indictments and court actions

for the last two years follows:

Results of criminal action in tax fraud cases

Action

Total

Imikhmets.ml information,.-. ---------------

Disposals, total.. ............. --_--------

Pfira.,guiltY or auto contenders.-........... Carry led after trial ---- __-------

, 11"t1d,W;,_cl;;~fsrf;~---------- AN.?_,m33 ....

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

Income and finhic.11motoo. con,

I adichment,; and informations-................

D apostle, foist -----_----_------------- ----

Ples,,gullty or nolp contenders------- Convicted alter trial. ...... Ac?ultted.. ... ..... No -possed or-diii'm"i's's'e'd------------------ ......

Wagering tax cam

I ndictments and Information- Disposals, bm1al;_-............

Plea.,gullty or note contenders.-..... ..................

Conv cted aft""al .............. ------ _ -----------

Acquitted. ---- -............ ----

----------_----- :::

or- Includes ars, dismissed for the following ...a,: 18 because of death of ,,I,clpal defendant, 9 because of serious illness, and !6 because principal do. nalaidled pleaded gulliverhad boenconvi led in a related case. Include,it ~ncmne. estate, gill, and ex !as taxes other then wagering, .1,chat, tolence.im unninfixtea.s.

Criminal action is also taken against violators of

the laws covering alcohol, tobacco, and firearms.

The number of indictments and disposals are shown

in the following table:

Number of defendants

1963

1:,,

-

596

1,1,1,7

73 230

1962

1:47,

37

-

8

1

3

1765

817

814

'683

49 1117

1 039 '782

552

93

121'3

181

936

734

'21

'701

866

703

494 -

84

121',

Results of criminal action in alcohol, tobacco, and firearms

cases

Action

Number of defendants

1963 1962

Indictments and informations.... ................ _ .......

Disposals. total ---------- _.......... ----- __ Ples. C guilty or nolo conrerdere._ ........ ~:_: ........

"a"'I"ad Acquitted off" trial-.... --------------- -------------------------- - ----- -

Nal-prinqual or disoninnal ......... ----------------

5,747

6,027

4,7256

14

369

688

5,979

5,854

4.250

337

579

SUMMARY OF ADDITIONAL TAX FROM

DIRECT ENFORCEMENT

The following table shows the additional tax,

penalties, and interest, by source:

ENFORCEMENT ACTIVITIES

ADDITIONAL TAX FROM DIRECT ENFORCEMENT

Vocluding lateral =it penalties)

Millions of dollars

F,maritundit

From mathematical

verification

From delinquent 13

,al-fituromraid 04

From taxpayer delinquent account,

collected

1963 1962

1,860

Despite the excellent record of voluntary compliance with the tax laws by theAmerican taxpayer

under our self-assessmcnt system it is nevertheless

incumbent upon the Service to maintain direct

enforcement programs to insure that all taxpayers

receive equitable treatment and pay their just

share of tax. During the year the amount of

additional tax, penalties, and interest resulting

from these programs totaled S2.2 billion, a new

record.

Additional assessments resulting from examination of tax returns increased $232.4 million over

last year and amounted to $1.9 billion. These

assessments are not comparable with tax increases

on returns examined during the current year as

they represent the correct tax liability determined

upon examination or after appeals action or court

decision. When agreements are not reached at

the audit division level the time required for

consideration of administrative appeals or litigation may delay settlement for a year or more.

Consequently these amounts reflect assessments on

examined returns but do not accurately measure

results from current year audit operations.

Mathematical verification of individual income

tax returns resulted in an increase in additional

tax of $7.8 million over last year, and tax, penalties, and interest on delinquent returns secured

increased $31.6 million.

Tax, penalties, and interest resulting from direct enforcement

flothousuardsoidollaral

Item 1963 1962

Additional tax, penalties, and interestactessed, total.

From examination oftex returns, total .........

Incometax,total --------- _----------_

Corporation....._ ----------- ------ Individual und and suit fiduciary

P,araf

it --

-------------- It'guiviudil----:

------

"I'le ton o'hn.dn1,11.1x11fn~~,Jdi~j-Wch-W;if,;_, 'I'lo

Com tax)__ --- _-------------

Excise1'tax----------------_

Fro. northri"ma".1 verification of income tax returns

Fro, delinquent returns secured, total-. -------

11By it a . divisima-........... i i dit divisions

Claims disallowed

Total --_-------------------- ----------- ......

By fly district audit divisions---_---------------- regional appellate divisions -------- __ ----

-

Q

.

u

.a.

n

-

t

isx

-a-a.

collected

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

Delloquent accounts --------------- Trust fund, in notice status-.-.-. ---

Revised. n.a.-Not available an a comparable basis.

2,243.356

1,859,975

I, i69,949

807,568

89 602 672: 678

241,11,11 R

.332 40,147

148,113

235,267

1,71 18': ,

4. 3

1,080,794

948.441

132,353

1,280,686

1 093 000 '187:686

11,971,577

1,627.604

1,405,328

722,969

120 396 561:973

171,771

4,959 41,539

140,294

203.679

"'39:173 506

TAXPAYER DELINQUENT ACCOUNTS

Millions of dollars

1.475

-A- 11,454

1 ... ad

Closed

Inventory

June 30

1,041

1,036

1,255,172

1

1

'- 2:7s9..

TAXPAYER DELINQUENT ACCOUNTS

Nearly 2.9 million delinquent account assemblies

were issued, 9.7 percent fewer than the number

issuedinl962. However, the amount ofdelinquent

tax involved, $1,475 million, was $21.2 million

more than last year, due principally to a few very

large delinquent accounts.

Emphasis on reducing inventories was continued

and at the end ofJune 968,000 delinquent accounts

were pending, a reduction of 8.4 percent from last

year. The amount of delinquent taxes involved in

the accounts pending at the close of the year aggregated $1,041 million, only $4.8 million more than

last year. This increase is less than the increase in

1963 1962

amount of assemblies issued on new accounts,

and thus reflects the particular attention given to

closing large accounts.

The decrease in number of new accounts is attributable in part to the continued effectiveness of

the accelerated procedures put into effect last year

for collecting trust fund taxes. Under those procedures immediate contacts are made to collect

withh.]~ling and similar trust fund taxes from cmployers and excise taxpayers who failed to pay thc.

tax due on returns filed or failed to obtain deposi.

tary receipts evidencing payment to the Government on a timely basis. Additional taxpayers were

brought under these procedures this year and a

larger number of accounts Were closed while in

notice status (before delinquent account assemblies

were issued). In fact, in 1963, accounts collected

while still in notice status exceeded by 65,000 and

$84.9 million the number and amount collected

in 1962. The decrease in new accounts may also

reflect to some extent the increased educational

and enforcement efforts of the past 2 years.

The delinquent accounts activity (including

activity related to the accelerated collection of

trust fund taxes while in notice status) is shown in

the following table:

24 25
Issued--------------------------

Closed, total ........... -

By type of action: Collected --------- Addliffies.l. up an Other disposals I—, ...... By method of handling:

ORavenue officen~.-..--- Ifice collection force Other— .................

Pending June 30, total ... .....

Activ -----------

Deferrad-: ---

T-Iftneliescoll,lertilletst- R

C ---------

affected.: ... ...............

26

Status

Taxpayer delinquent accounts

Number (,he...mile)

1963

2.879

Z,967

2,468

...... 499

1,012 1 797 '158

968

77401

1

93

14784

ANNUAL REPORT as CHAPTER FOUR

1962

3,187

3, D90

2,622

------- 468

03 1:9121

148

1,056

851 i0i D4

5019

Amount (thousand dollar,)

1963

1,474.762

1,509,916

1 053 035 ' 39:965 416,916

649 562 577: 271 243,119

1,041,148

609,849 3,11J: 51"35

119 187:686 ..

1962

1,453,568

1.478,422

1 114 445

37:928 326,050

656 951 619:727

163,818

1,036,337

542,276 448,85 45,208

236, 1

02.799 561

sal Includes dispinah; due to uncollectibllity and arnamous and duplicate tax nant.. Does net include additional collections of linessersed ampart-el peirccearts Previously written off.

WORK FLOW IN THE SERVICE AND COURTS

It is impossible for the Serwice to complete the

processing of all tax rent rns du Fin g the year in wh ich

they are filed. However a comparison can be

made of the volume processed at each administrative level of the Service and in the courts by considering the workload for any given year. In

evaluating the work flow it is necessary to consider

the unit count at different levels. Returns filed

and the processing through audit divisions is on

a return basis while processing by appellate divisions, intelligence divisions, and the courts is on

a case basis which may involve one,or more returns. I

As the major administrative burden is on the processing of income, estate, and gift tax returns,

especially at the appellate and court levels, the

following tabulations, with the exception of returns

filed and internal revenue collections, are confined to these types of retums:

Work Now in the Internal Revenue Service ad the courts,

fiscal years 1963 and 1962

-

Item

To-stim, filed, total.... ------------ ---

Individual income ----------------- ------- -

Corporation income -------------

Espa;,eymd 1 ft.----------------

Ell a art--1 -:--:: ------------- -----

s2a.

........ :

- -- -------- Oth , ince .......................

INCOME, ESTATE, AND GIFT TAXIS

Number of returns examined............ Returns with adjustments Proposed 'by"t-sr-di't divisfions. ....d---------- --------- D

titais byaudit ivislans: Agerdeve, Paid. or defaulted C ------------- ------

ivil cases

Total received in appellate divisions. . ------------- Disposed C P .......11it 1Y division,: 'aid a, defaulted---------- --------

is ii, iiiiijim;

jurisdiction:

To. Court: Total petitioned to Tax Court--- Dismissed ----------------------- San ad by stipulation -------- Se%od by Tax Court decision., Gift 01111hel by To. Court IbCut ~Ppealed~ ------ ,let courts

.it ..it .1 arm,:

Totalfilled in district mutts and Court of claim -------------- ---------

SettIed in districtourts,and Court aClmi ourations Dhin~idxd by district art, and of'

Court, .1 -

C

P"als'--------------------------------

Set" MY courts of appeals declsion,.- Favorable to Government.........

Favorable a

Modified _ t

taxpayers.

- --------- Decided by courts of appeals but reviewed by

supreme Count— ------------------------- Supremel Set adCo"by Supreme Court decision............

Fraud

Received for full-scale in...ligation in intelligence

division, ........

------------------- ------ Disposed of by Intelligen a divisions: Prosescwt an -nr-d,d----------------- Pmxecuflo, not roomemended...... --------- Disposed of by Office of Chief CounselP-catnet net -ralref --------------------

Departmentof Justice declined.-------- ------

rialeatnon-... ------------- -------------

:boxised. nefilles racm tax nes.

1963 1 .9152

97,832,977

63I 679 I 166 1,291,039 179 446 21 1

39:,735 3

'14: Its 171 "

3,673,939

2,339,659

2,102,069

18,326

14,179

5,37

266 371 1: 089 39D

1,407 764

486

349 229

42

6

7

2,239

994 1,228

15177

1,405

Retain,

Cases

96,511,219

62 487,325 1,231,738 168 491

20,931:576 4:1 111 17 682:774

3,279,670

2,267,735

2,068,170

15,804

12,687

4,749 228 4,890 U2 403

1,364 659

505

421468

Is

6

7

2,200

955 1,166

16577 1,143

Amounts of revenue involved at each level of the tax system,

fiscal years 1963 and 1962

IMIllions of dollars]

1 Includes excise taxes.

Item

Internal -ru-Ifixthl"t.1.11.1 ------------------

1rafividu.1 I aparme taxes. total----------- ------

Withholding-- othre_-............. ----------------- .........................

------------ 1

Carporation income taxes.--------------- -... -------

EEst to and gift taxes....... -------- -------- ........

moploymeettaxes ------- --- ---------------

Excise taxes--------------------- --------------- ---

INCOME, ESTATE, AND GIFT TAXES

Civil on.

Additional tax and penalties in cases disposed of in audit divisions by=nt, payment, "

chiffil.dIt-i------J--

Additional

tax Ifies in cases d'spos' in ap' late divisions by agreement, Payment, a, detsuito -------------

Additireal'box and penalties determined by settlement in.

To Cru -------- ------- ------- .. .... Additional tes and penalties determined by Tax Court decision: Dismissed ---------- ----------------- DexWenenionerits, 7.. Add tional to ed Penalties Supreme

Court arld 'courts of appeals -

Amountreun ad to taxpe,yersase,exuliot------------------- refund suits- ....

Field conns

Deficiencies and penalties in uses disposed of in intelligence di,i ien,:

Prosecution recommended ------ .......... .....

Prosecution not recommended--------------- ---------

Type of tax or penalty

ENFORCEMENT ACTIVITIES

1963

105,925

52,988

14:71 38 269

22,336 2 187 5: 004

1 3,410

11147

179

81

26

9

37

116

29

1962

99,441

50,650

-

36 246 14:403

2112:209365 Z, 709

12,752

6

1.042

14

63

217

1225

io322

Offers accepted, total...... -- ...... ------------------- ......... .......

I nessfire, profit, estate, all a, gift taxes ------------------- - ---------------- E Play am and withh d ing taxes.------

A'ce hot taxes------------ -------------

Mer excise taxes .................. -------------------- ---------

Delinquency penalties on all taxes--

Specific penalties. ------------------

Often rejected a, withdrawn, total------------------------- ----------......

Income. 1. profits,destate'aall gift to ------------------- - ------------------ Emp oyment an withh Ing taxes. --- Alcohol taxes.

---

Other eriChre .................. ....

Delinquency penalties on all taxes---------- -------- --------- - ---------

Specific penalties. ---------- ------------ --------- ----------------- ...

off.. I. compromise disposed of

OFFERS IN COMPROMISE

The final phase of the compromise decentralization program was completed on June 14, 1963.

Effectivejuly 1, 1963, district directors will assume

responsibility for final acceptance of substantially

all tax and penalty offers involving liabilities up to

$100,000. The Chief Counsel has redelegated the

responsibility for furnishing legal opinion on these

offers to the regional counsels.

To prepare field offices for this increased re

sponsibility, district enforcement personnel were

given additional training by advisory memoranda,

periodic analyses and evaluations, seminars, and

indoctrination courses.

The overall compromise workload on June 30

consisted of 3,569 cases awaiting consideration at

all Service levels. This is considered a minimal

figure and not susceptible to further material

change.

Corn romise cases closed are shown in the fol- p

lowing table:

1963

10,964

BID 86495

2"Is

2:9989 5

4.360

1.643 1.296

35jIS

945

30

Number

1962

11,061

777 75997

2131 3,

08

6,126

4, 327

1,545 1,11182

373

982

40

1963

Liabilities

27.470

165'. 185604

228

1I:

6226

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

86,173

63,272 12,143147

9.146

670

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

Amount (thousand dollars)

1962

26,053

1 163 6

42S7

3.092 1.662

......

69,989

102:174

69

4183

7

1. N597

...........

1963

7,275

4 013

':'21IS' 776 304 103,

13,003

12:,12921

54

902 I

29

5

Offers

1962

7,706

4 951 1:47876 698 337 166

10,182

1 136641 1.027 I

14

11

27
ANNUAL REPORT age CHAPTER FOUR

COLLECTION LITIGATION LEGAL SERVICES

For the past 5 years the legal work connected

with the functions of the district directors' offices

has maintained the level of activity it reached in

fiscal 1958. The number of cases received during

the current year was 11,366 as compared with

10,374 in 1962. The number of cases disposed of

was 10,922 as compared with 10,380 last year.

The inventory of pending cases stands at 4,829,

an increase of 444 from the 4,385 cases pending

at the end of 062. For a detailed report of the

cases received and disposed of see tables 23-25

on page 101.

Aside from the legal work which can be reported

on a caseload basis, the informal assistance to the

district directors' offices, rendered by lawyers

who handle collection litigation cases, in the regional

counsels' offices continued as in prior years. This,

together with the assistance rendered during the

periodic visits to district directors' offices by

these same lawyers as a part of a continuing

visitation program, is a result of the reorganization

program begun some years ago under which much

of this legal work was decentralized to the regional

counsels.

As in prior years, the lawyers in the regional

counsels' offices participated in the continuing

in-service training programs developed by the

Service to train and give guidance to the personnel

in the district directors' offices dealing most

directly with collection litigation matters. The

value of this in-service training is continually

apparent to the lawyers of the regional counsel

through the constantly improved reports which

are received by them in collection litigation cases.

Two cases pertaining to problems considered in

connection with collection litigation legal work

were decided by the United States Supreme Court.

For a summary of these cases see pages 68 and 69.

FEDERAL-STATE COOPERATION

Gratifying progress was made in extending the

area of Federal-State cooperation. Seven new

cooperative exchange agreements were concluded

with Arkansas, Illinois, Iowa, Maryland, Virginia,

West Virginia, and the District of Columbia. This

brings to 20 the number ofsuch agreements now in

force. Negotiations of 9 additional agreements

were at various stages of active development between State tax officials and the Service at the close

of the fiscal year.

The benefits stemming from these agreements

have been steadily increasing, both to the Service

and to the States. In the area of delinquent taxes,

the flow of information from the States is yielding

Federal revenue at the rate of about $22 million

annually. Also, information furnished by the

States to the Service, reflecting the results of audit

of State tax returns, led to the assessment of S2

million additional Federal revenue, at a cost of

approximately $45,000 during the year. Reports

by State tax officials indicate that comparable

benefits to State revenue are being obtained

through information furnished systematically by the

Service.

P.L. 87-870, enacted this year, provides for

special services to be performed for States and other

specified agencies on a reimbursable basis. The

Slates are likely to have particular interest in con.

.tracting for special statistical compilations and in

arTanging for the admission of State tax officials

to the training courses of the Service. Efforts are

now underway to achieve a mutually satisfactory

meshing of diversified State needs with the training

resources available to the Internal Revenue Service.

INFORMANTS' REWARDS

Including those pendingJuly 1, 1962, informants'

claims for reward considered during fiscal 1963

numbered 9,196. Ofthese, 753 were approved with

payments to the informants of $458,688. Of the

4,266 claims disposed 6f, 3,513 were rejected either

because the claim could not be substantiated or the

eligibility requirements of the regulations were

not satisfied.

From information furnished by informants, the

Service recovered $12.7 million in taxes, penalties,

anti interest.

Below is a table comparing activity in this area

for the past 2 years:

Receipt and disposal of claims for informants' rewards

Status 1963 1962

P=July A I------------ ------- -----:::a"`dp,!~_

Map ..d --- ----- : -------- -------- ::: ------ d-_

Ffi,i,,`,d___ ...... ------------------_- :do

Allowed.. ------- _--------------------- d.:::-

P d" one 30. -------------------- .-,-do---

Amovmt an' 'ng allowed I on claims disposed of-.--..... often--

28

4 196

4,266

753

4,930

4M, 688

4: 774

4 147

3,921

3,256

665

5,000

587,256

ALCOHOL AND TOBACCO TAX

ENFORCEMENT

Intensive concentration on the perfection of

criminal cases under the Major Violator Program

against the principals responsible for large-scale

illicit distilling activities, resulted in effective

prosecutive and trial action in most areas. During

the year, 591, or approximately 37 percent of the

1,573 listed major violators were arrested or indicted. Noteworthy is the favorable attitude of the

courts toward the objectives of this Program which

continues to be reflected in the severity of imprisonment sentences imposed upon the financial

backers of illicit operations. This is regarded as

a significant crime deterrent factor.

The Mandatory Preventive Raw Materials

Program continues to be an important adjunct

to the law enforcement effort in preventing to a

considerable extent the acquisition by illicit

distillers of sugar, yeast, and containers essential

to the production and packaging of nontaxpaid

distilled spirits. It is encouraging to note that

wholesale and retail dealers in such commodities,

cognizant of the tax fraud potential are, for

the most part, cooperating with the Government by establishing merchandising policies designed to deny liquor law violators or suspicious

persons access to large quantities of sugar even

though premium prices arc frequently offered

therefor.

Fourteen southern States accounted for 92.6

percent of the stills and 95.3 percent of the mash

seized in 1963. Seizures in all categories declined

with the exception of nontaxpaid wines. The

volume of mash seized in the country as a whole,

a significant index of the trend of illicit production,

was reduced by 9.7 percent, as shown in the

following table:

ENFORCEMENT ACTIVITIES

Seizures and arrests for p1cohol, tobacco, and firearms

violations

1963 1962

Seizures:

Stills.... ....... ...... number--

N.cts.p.ld distilled spirits -------------Sell..,

Nortexpaid win......... ........ ......do~ ---

me h -----

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

---- _-do----

vehficlew,~... .......... ...number.

rr.Prolmrty .....__:_-dollar,

A .11 -_ ------------ ._... ...number:-

6,213

149 940

"

: 530

3,1112 617

2: 431

2. 0 390

8:507

6,886

174 572

3,4 2:930

24 472

2: 621

2.

2

52 718

9: 126

I Includes 2 arrestsfor tobacco violations and 358 arrests for firearms Violations

in 1963 compared with 2 and 398, respectively. in 1962.

in Not. -Includes seizures and arrests In cases adopted. as well as originated, by

e Internal Revenue Service.

As an adjunct to the seizure and forfeiture of

property (principally vehicles, pinball machines,

and cash) because of its use or intended use in

violation of the alcohol, firearms, and wagering

laws, the Service was required to investigate and

rule on 489 petitions for remission or mitigation

filed by persons who alleged an interest in the

forfeited property.

FIREARMS PROGRAM

Public hearings on legislative proposals to amend

the Federal Firearms Act were held by the Senate

Subcommittee onJuvenile Delinquency during the

year. These hearings were attended by representatives of the Service and of the firearms industry.

The proposed amendments, in addition to increasing the license fees for dealers and manufacturers of firearms, would place restrictions on

the availability of pistols and revolvers tojuveniles,

particularly through so-called "mail order" sales.

This legislation is designed to be helpful to law

enforcement agencies in the field of crime prevention.

A study of devices designed to fire either tear

gas or flares, or both, but which are also capable

of firing fixed ammunition, resulted in Service

rulings that required manufacturers to make radical

changes in such devices to preclude their falling

within the category of firearms controlled by either

the National or Federal Firearms Act. Studies

made of a number of types of so-called semiautomatic rifles imported into the United States,

brought about the classification of such weapons

as machincgun~, the importation of which will

hereafter be subject to the registration and other

provisions of the National Firearms Act.

Registration of firearms totaled 537,132, compared with 349,311 in 1962. The increase was

due chiefly to the production of a greater number

of automatic weapons required by the Armed

Forces. Investigation of violations of the National

and Federal Firearms Acts and the Act of August 9,

1939 (49 U.S.C. 781) resulted in the perfection

of 358 criminal cases, 352 arrests, and the seizure

of 115 vehicles and 725 firearms.

The decision of the Court of Appeals for the

Ninth Circuit in Russell v. United States, 306 F. 2d

402 (1962) temporarily posed a serious threat to

enforcement of the National Firearms Act. In

this case, the Court set aside defendant's conviction

. 29
ANNUAL REPORT e CHAPTER FOUR

on a charge of failure to register a firearm on the

ground that compliance with the registrationvequirement of the Act would have violated his

constitutional guarantee against self-incrimination.

However, when the Court was faced with subsequent cases involving the review of convictions on

charges of possession of an unregistered firearm,

it upheld the convictions, distinguishing the Russell

case on the ground that here the substance of the

offense lay in the defendant's possession of the

firearm and not in any failure on his part to have

rc-gistered it (see Starks v. U.S., 316 F. 2d 45, and

IFrye v. U.S., 315 F. 2d 491). Other circuits have

since taken similar action. Hence, unless Frye

should be reversed by the Supreme Court, the

problems anticipated as a result of the Russell

decision seem to a large extent to have proved

illusory.

30

Supervision of

the Alcohol and

GENERAL

The Liquor Law Revision Committee, which

was established on March 1, 1962, continued its

studies of the industrial alcohol and liquor tax

laws. The objectives of the Committee are to

achieve the utmost simplification in revenue control

and tax determination so that more economical

government supe,vm.. can be attained and the Tobacco Industries industries will have the greatest degree of operating

latitude consistent with effective revenue protection.

In order to cooperate with other departments of

the Government the Service granted special authorizations permitting the mingling and storage

(under conditions not contemplated by internal

revenue regulations) of several million gallons of

distilled spirits produced from California grapes

which were declared by the Grape Crush Administrative Committee of the U.S. Department of

Agriculture to represent surplus production. Under

the pertinent USDA regulations, the "setaside"

distilled spirits produced from such surplus grapes

were not to be disposed of for beverage purposes.

Arrangements were completed for the "setaside"

spirits to be converted to industrial alcohol.

The Service also required specific identification

of all food colors and other additives which industry

members have proposed to include in their formulas

for rectified products and wine, for the purpose of

assisting the Department of Health, Education, and

Welfare in familiarizing industry with the requirements of the Food and Drug Administration concerning such additives. Approval of any formulas

which were found to include injurious additives or

injurious proportions of additives was withheld.

As the result of efforts between the Alcohol and

Tobacco Tax Division and the joint Committee of

the. States on Alcoholic Beverage Advertising, The

National Conference ofState Liquor Administrators

and the National Alcoholic Beverage Control Association, Inc. have resolved to urge the individual

States to adopt uniform regulations (similar to the

Federal requirements) governing the advertising of

distilled spirits and wines in newspapers and

magazines.

31

L

I

~_=
ANNUAL REPORT * CHAPTER FIVE

AUTHORIZATION OF INDUSTRY

OPERATIONS

An indication of the extent of activities relating

to the authorization of industry operations may be

obtained by reference to statistical tables. Permit

actions are shown in tables 10-12, on pages 92-93,

and the number of establishments qualified to

engage in the production, distribution, storage, or

use of distilled spirits and alcoholic liquors, is

shown in table 8, page 92. Corresponding figures

relating to cigarettes, tobacco products, and

tobacco materials, are shown in table 9, page 92.

In administering the provisions of the Federal

Alcohol Administration Act and its related regulations, 46,949 applications for label approval or

exemption from label approval (19,943 applications for distilled spirits, 25,090 for wines, and

1,916 for beer) were processed during the year,

compared with 44,861 applications during 1962

or an increase in workload of 4.7 percent. A total

of 20,392 periodicals and 3,429 radio and television

"commercials" were examined to determine

whether alcoholic beverages advertising contained

therein complied with the Act and Regulations.

In addition,, 1,060 proposed advertisements and

projected advertising campaigns which were voluntarily submitted, were reviewed prior to publication as a service to industry, and 282 conferences

were held with industry members, their attorneys,

or advertising agencies concerning advertising

matters.

The provisions of procedural rules dealing with

the disclosure of information (26 CFR 601.702)

"were amended, effective March 25, 1963, to

permit the Director, Alcohol and Tobacco Tax

Division, upon proper written application, to

furnish information to interested persons concerning the issuance of certificates of label approval,

or exemption from label approval, under the

Federal Alcohol Administration Act.

The National Office processed 1, 1 12 formulas

for rectified products and 158 formulas for wine,

as compared with 684 and 127, respectively, in

1962. The food additive control program was

largely responsible for the increase in the number

of formulas for rectified products which were

reviewed. The National Office also reviewed

3,642 qualifying documents; issued to Government

agencies a total of 26 permits to use tax-free

spirits and 16 permits to use specially denatured

spirits; approved 88 distinctive liquor bottles;

and acted on 70 offers in compromise involving

violations of Internal Revenue Laws, -and 16 under

the Federal Alcohol Administration Act.

ON-PREMISES SUPERVISION

Pilot operations initiated near the close of iast

year and completed this year demonstrated the

feasibility of further improvements and streamlining in the methods used by the Government to

supervise distilled spirits plants. Using the new

procedures as guidelines, a nationwide survey of

inspector (on-premises) manpower requirements

was carried out. Study of the results indicates, in

certain regions, the possibility of eliminating a

limited number of inspector (on-premises) positions,

as they become vacant. Increased use would be

made of inspectors (general) for on-premises

supervision during periods of peak plant activity.

The policy of not filling vacancies, except for emergency situations, resulted in savings of approximately 59 man-years in inspector positions.

Inspector (on-premises) supervision was provided

at distilled spirits plants whose operations and activiiies involved transactions in distilled spirits, as

follows: Producti6n, 800.8 million tax gallons;

denaturation, 517.8 million tax gallons; warehousing, 1,054.1 million tax gallons; and tax-paymerits, 188.6 million tax gallons. In addition, 87.6

million proof gallons of distilled spirits and wines

were rectified, and 220.2 million wine gallons of

distilled spirits were bottled.

INSPECTION OF ESTABLISHMENTS

Quality- inspections, utilizing additional audit

techniques were emphasized. Authority to regions

to select premises to be inspected in accordance

with indicated needs, rather than by rigid schedule,

was formalized at the beginning of the year. As

a result the scope and depth of selected inspections

increased materially. In the closing months of the

year, all regions concluded field tests of a proposed

brewery inspection handbook. Time devoted to

these tests and increased use of audit techniques in

inspections contributed to an increase in man-days

per inspection and a corresponding decrease in

number of inspections completed, from 32,260 in

1962 to 28,966 this year.

32

SUPERVISION OF THE ALCOHOL AND TOBACCO INDUSTRIES

CHEMICAL ANALYSIS AND RESEARCH

The continuing emphasis being placed on

research is typified by a contractual agreement

with the Atomic Energy Commission whereby the

National Office laboratory will carry out research

in the field of neutron radio-activation analysis

in criminalistics for the benefit of the Internal

Revenue Service. Other research activities resulted in the publication of 6 scientific papers in

internationally recognized chemical journals.

The rapidly expanding use of forensic chemistry

as an adjunct to criminal investigative work led

to the establishment of a physical evidence unit in

the National Office laboratory to serve the Enforcement Branch of the Alcohol and Tobacco

Tax Division.

Approximately 39,600 samples were examined in

the National and regional laboratories, of which

about 8,600 were illicit spirits and 8,300 were

narcotics. In the National Office laboratory, in

the categories of foods, flavors, and medicines using

taxpaid spirits, 2,825 new formulas were approved

and 623 samples were analyzed. In addition,

3,904 formulas and 4,219 samples were examined

and approved for products and processes using

specially denatured alcohol. Labels were approved

for 9,211 products produced with specially denatured alcohol. An increase of some 2,000 narcotic

samples caused the total volume of samples to

exceed the previous year's total by about 1,700.

707-151 0-63----4

33
LEGISLATIVE ACTIVITIES ,

fl

34

~~O_ GENERAL

The fiscal year was marked by much Congres-

,ional activity in the area of tax legislation. PrinLegislative cipal activities were directed to enactment of the

Revenue Act of 1962 and to the major tax revision

Activities program which was submitted to the Congress on

January 24, 1963. In addition, study, research,

and assistance were carried on relating to particular revenue measures enacted by Congress or still

pending. The regular and recurring functions in

connection with the Department's legislative program, reports on bills, drafting of legislation, and

other technical work were continued.

LEGISLATIVE PROGRAM

The Service submitted 74 items to the Assistant

Secretary for Tax Policy for consideration in the

formulation of the Department's legislative program. These suggestions dealt principally with

tax inequities, loopholes, and administrative problems. They were developed from reports submitted

by offices throughout the Service; from research

and study projects undertaken to develop information about tax inequities, abuses, and administr -

tive problems which seem to warrant corrective

legislation; from suggestions trade by Members of

Congress and the public; and from suggestions

submitted by employees through the incentive

awards program. I There was much activity in the Technical Coordination Program. It is through this program

that the field offices report to the National Office

on actual taxpayer cases involving tax abuses, inequities, and administrative problems. These reports were studied and evaluated in order to determine what legislative suggestions the Service should

make to the Department.

LEGISLATIVE ASSISTANCE

The Committee on Finance conducted hearings

on H.R. 10650, the Revenue Act of 1962. Some

of the more important sections provided fora tax

incentive credit to encourage modernization and

expansion; withholding tax on dividends andinterest; more equitable taxation of mutual thrift

institutions, mutual casualty insurance companies,

and cooperatives; the removal of much of the

preferential treatment accorded foreign incomc~

and the disallowance of certain travel and enter.

tainment expenses. The Committee substituted

for the withholding on dividends and interesta

provision requiring the filing of information

returns covering the payments of such income.

Representatives of the Service attended both the

public hearings and the executive sessions before

the Committee and assisted in drafting changes

proposed by the Committee. The Act was passed

by the Senate and on October 16, 1962, it was

signed by the President and became Public Law

87-834.

The President in his tax message to the Congress

on January 24, 1963, recommendeda reduction

in individual and corporate income tax rates and

also structural revision and reform. The reform

program is directed toward the relief of hardship

and encouragement of growth, base broadening

and equity, and revision of capital gains taxation.

The Service assisted the Treasury Department

in developing the Administration's tax program.

Work on this program included research, technical

analyses, and the gathering of information regarding tax matters covered by sections of the

Internal Revenue Code which are under consideration. Also, representatives of She Service attended both the public hearings and executive

sessions before the House Committee on Ways

and Means, and assisted in drafting legislative

language to carry out tentative decisions of the

Committee in regard to the President's recommendations, and the Committee report.

Representatives of the Service attended the

public hearings and executive sessions of Congressional Committees on the enacted and pending

bills listed below. They also rendered other

technical assistance in drafting the legislation and

related Committee reports. .

Information reports, technical reports, drafts of

bills and accompanying technical explanations,

and other data relating to legislative matters were

prepared for the Office of tl~e Secretary of the

Treasury, Included were 47 formal reports on

Congressional bills which dealt with proposals to

amend the Internal Revenue Code and other

legislative matters, including private relief bills.

Eight technical memoranda on pending bills or

legislative proposals were prepared and forwarded

to the Secretary of the Treasury. These bills

and legislative proposals included recommendations

to amend the Internal Revenue Code in respect to

liquor, tobacco products, and firearms, and to

amend the customs laws, the Federal Firearms Act,

and the Administrative Procedure Act, as well as

private relief bills in the alcohol and tobacco tax

area.

LEGISLATION ENACTED

Congress enacteda number of public laws relating to tax matters, the most important of which

(other than the RevenueAct of 1962) are listed and

summarized below:

Public Law 87-682 extends to fishermen the

same treatment accorded farmers in relation to

estimated income tax.

Public Law 87-710 providesa 7-year net operating loss carryover for certain regulated transportation corporations.

Public Law 87-768 modifies the application of

the personal holding company tax in the case of

consumer finance companies.

Public Law 87-792 extends many of the favorable

tax benefits of qualified retirement plans established

by employers for employees to plans established by

and for self-employed persons.

Public Law 87-859 continues for an additional

3-year period the existing suspensions of the tax

on the first domestic processing of coconut oil,

palm oil, palm-kernel oil, and fatty acids, salts,

combinations, or mixtures thereof.

Public Law 87-863 increases the maximum

limitations on the amount allowable asa deduction

for medical, dental,.etc., expenses. Anothersection

of this Law provides thata State or political subdivision which operates retail liquor stores shall

not be required to pay more than one special tax

asa retail dealer in liquors, regardless of the number

of such stores operated by the State or political

subdivision. The provisions of this section of the

Act were made retroactive to July 1, 1962, which

necessitated the allowance of claims for refund of

the special retail tax for additional stores, if already

paid for the fiscal year which began July 1, 1962.

Public Law 87-870 provides for the elimination

of certain tax inequities through the permissive

35
I

ANNUAL REPORT sa CHAPTER SIX

taxation of certain jointly owned railroad terminal

and switching facility corporations as partnerships.

Public Law 87-876 provides for an increase in

the retirement income credit.

Public Law 88-4 provides that the deduction

for child care expense shall be available to a wife

who has been deserted by and cannot locate her

husband, on the same basis as a single woman.

Public Law 88-9 provides a deduction for payment of redeemable ground rent.

Public Law 88-31 provides for a reduction in the

rate of the Federal unemployment tax for the

calendar year 1963.

Public Law 88-36 repeals the silver purchase

acts and the related transfer tax on silver bullion.

Public Law 88-52, the Tax Rate Extension Act

of 1963, in general postpones until July 1, 1964,

reductions in the corporate normal tax rate and

certain excise tax rates, and termination of the

excise taxes on general telephone service and

transportation of persons by air, which would have

become effective on July 1, 1963.

LEGISLATION PENDING

Tax bills passed by the House at the end of the

fiscal year and awaiting action by the Senate were

as follows:

H.R. 780, to provide a credit against the estate

tax for Federal estate taxes paid on certain prior

transfers in the case of decedents dying after

Dec~mber 31, 1947.

H.R. 3297, to exempt from income taxation

certain nonprofit corporations and associations

organized to provide reserve funds for domestic

building and loan associations.

H.R. 6246, relating to the deductibility of

accrued vacation pay. A bill containing tax

provisions, S. 1, had been passed by the Senate at

the close of the fiscal year and was awaiting House

action. The purpose of the bill is to establish a

youth conservation corps. H.R. 5131, a similar

bill, has been reported to the House.

LEGISLATIVE IMPLEMENTATIONS

The Service developed and began carrying out

plans for the implementation of tax legislation

enacted during the year. These plans included

jhe issuance of new and amendatory regulations,

revisions of tax return forms and instructions,

issuance of publicity primarily through news and

technical information releases, revision of Service

publications, and issuance of special instructions

and procedures to field offices. In some instances

immediate action, particularly publicity, was required to assist taxpayers to comply with requirements of legislative amendments or to take advantage of tax relief afforded.

Some of the more important publicity releases

on tax legislation enacted during the fiscal year

include:

TIR-413 (November 13, 1962) calling attention

to the provision in Public Law 87-834 which

requires certain persons who either create a foreign

trust or transfer money or property to a foreign

trust to file an information return on or before

the 90th day after the creation or transfer takes

place.

TIR-416 (November 16, 1962) calling attention

to the provisions in Public Law 87-834 relating to

the taxation of stockholders of foreign investment

companies and to certain acts to be performed by

such companies.

TJR-423 (December 17, 1962) reminding taxpayers of the provisions in Public Law 87-397

requiring them to use their identifying tax account

numbers on Federal tax returns and related documents filed in 1963 and subsequently, and announcing a new information booklet entitled

"Questions and Answers Regarding Identifying

Numbers."

TIR-428 (December 24, 1962) calling attention

to the provision in Public Law 87-863 which allows

taxpayers a new option to deduct intangible drilling

and development costs as expenses in the case of

oil or gas wells.

TIR-443 (January 13, 1963) directing attention

to the provision in Public Law 87-834 which

reduces the exemption from income tax allowable

under prior law with respect to persons qualifying

under the "bona fide foreign residence" test.

TIR-481 (June 7, 1963) calling attention to

Public Law 88-31 which reduces the rate of Federal

unemployment tax for the calendar year 1963

from 3.5 percent to 3.35 percent.

36

Alcohol .

nd

tobacco

tax

CASE DISPOSALS BY OFFICE OF THE CHIEF COUNSEL

10,922

C limlion Tax

libogation Court

7

Legal

Activities

E.f Refund

are:

litigation

1963 1962

Other

CASELOAD DISPOSAL ACTIVITY

The total caseload disposals in the Office of the

Chief Counsel increased to 26,465 from the total of

25,156 in 1962, At the close of the year the total

caseload pending was 22,434, an increase of 496.

Caseload receipts increased to 26,961, up 9.6

percent from the 24,600 received last year.

CIVIL LITIGATION

The Government won, in whole or in part, all of

the 9 civil tax cases decided by the Supreme Court,

compared with 5 of 7 in 1962. The Government

also won, in whole or part, 271 of the 349 civil

tax cases decided by courts of appeal (exclusive

of bankruptcy, receivership, insolvency, lien, compromise, and liquor), compared with 301 of 414

such cases decided in 1962. In 1963 the Government's position was wholly or partially sustained in

77.7 percent of courts of appeal cases, compared

with 72.7 percent in 1962.

In the trial courts (Tax Court, Court of Claims,

and U.S. district courts) the record of Government

wins, losses, and partial wins appears as follows:

Trial court cases wo&.Iost, or partially won by the

vernment

Action

Tax Court Courto Claim District courts

1963 1962 1963 1962 1963 1962

Won,_ ....... ..........

Lost

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

P ;tally won.. .............. ----

P: cent won or partially won_._

20 27s.

109

93

159 163

81 82

31I,12 27',3

Is 6

81 59

200 111 112

213

56 44

53 53

TAXES IN LITIGATION

Both at the beginning of the fiscal year and at the

end there were nearly $1.5 billion involved in

cases wherein taxpayers sought to contest their

liabilities for taxes (and penalties). Actions for

refunds of taxes and penalties are handled at the

National Office level and actions for redctermination of proposed deficiencies in the Tax Court are

handled by the 9 regional counsels.

37

I

IL
I

ANNUAL REPORT as CHAPTER SEVEN

In the trial or settlement of cases in the Federal

district courts, the Court of Claims, and the Tax

Court,U 20.5 million was successfully defended in

refund suits, and $171.8 million was successfully

defended as proposed deficiency assessments, fora

total of $292.3 million of revenue saved for the

Government (see the table below).

Taxes in litigation

Iln thousands of dollars)

Tax Court

Refund

Status Total Itigation

Deficl... Overpay.

Cars art,

ftriiiing JulyI ............... 1, 446 898 810,537

,

Dispose ..

it-

.7: 571 11

846a

131 323: J13

291

12 782

66: 941 1 111

its 643

157,614

Parting June 301 469 649 '926 4191 401 8D9

Amou

.

saved_ 292:289 110:976 60:831 120:482

PERSONNEL

On June 30, 1963, the Office of the Chief Counsel

bada total employment of 1,290 persons, composed

of 644 attorneys and 646 nonattorney employees.

This represented

a slight decrease in staff from the

preceding year. The 644 attorneys were assigned

to the National Office and regions, as follows:

offi" Number of attorneys

National Office ............................... 263

Atlanta region ................................ 41

Boston region .........I ...... -... .......I ... 22

Chicago region ..... ..... .................. 42

Cincinnati region .............................. 42

Dallas region .. ....... .... .............. 32

Nevv York City region .......................... 59

Omaha region ................................ 34

0&1 Number of attorneys

Philadelphia region ............................ 51

San Francisco region ........................... 58

TORT CLAIMS

The Service adjudicates all administrative claims

under the Federal Tort Claims Act arising out of

negligent acts of Service employees, and assists the

Department of justice in the defense of suits

brought under that Act for damages caused by the

negligence of Service employees. During the year

99 administrative claims (as compared with only

48 for 1962) and 14 suits were disposed of.

During the year also, the authority to recommend

the institution of suits to recover for damage to

Service property where the amount claimed does

:not exceed $1,000 and the incident from which the

claim arises did not result in personal injuries was

transferred to the regional offices in view of the

decentralization of these suits by the Department

ofJustice to the United States attorneys.

SUMMARY

Legal services playa key role in all facets of tax

administration and therefore area vital part of

many of the Internal Revenue Service's operations.

Criminal prosecution cases, civil litigation cases,

legal services in collection litigation, and work flow

of cases in the Service and the courts are shown

tinder Enforcement Activities. Detailed statistics

on legal activities are shown in statistical tables

18-26 on pages 99-101, and the most important

court decisions are included in the Appendix.

38

8

International

Activities

GENERAL

As the world around us shrinks in size, the scope

of the Service's responsibilities and operations

overseas steadily enlarges. The overseas affairs of

the Internal Revenue Service divide into three

broad areas-furnishing technical assistance to

developing countries in the strengthening and

modernization of their tax systems; participation

in the negotiation of tax 'conventions with foreign

governments and the preparation of regulations

under these pacts; and the administration of

Federal tax laws affecting mainly U.S. citizens and

business organizations abroad. The program for

assisting the developing countries in strengthening

their tax systems is carried out in the immediate

office of the Commissioner of Internal Revenue

through the Foreign Tax Assistance Staff; Service

responsibility for tax treaties and regulations is

assigned to the Assistant Commissioner (Technical);

and responsibility for the overseas administration

of Federal tax laws is in the Office of International

Operations under the Assistant Commissioner

(Compliance).

FOREIGN TAX ASSISTANCE STAFF

Following the pledge of the Secretary of the

Treasury at Punta del Este in 1961, the Internal

Revenue Service organizeda program to extend

technical assistance for tax administration modernization to developing foreign countries. Rcsponsibility for the program is vested in the Foreign Tax

Assistance Staffin the immediate Office ofthc Commissioner of Internal Revenue. The Staffs activities are conducted in close collaboration with the

Agency for International Development of the U.S.

Department of State. The Service's immediate

efforts are oriented mainly to Latin America, undr

the Alliance for Progress, although several countries

in other hemispheres have requested and are receiving assistance in tax administration modernization.

The overall program is divided into two broad

but integrated efforts. One deals with the selec39
I

I

ANNUAL REPORT at CHAPTER EIGHT

tion of tax specialists, not only from within the

Service, but also from selected State and local governments, for overseas assignment at the invitation

of foreign countries. The second involves arrangements for foreign tax officials to observe and study

in the United States the organization and operation

of the Service.

The activities of Internal Revenue Service Tax

Teams overseas range from broad surveys of

existing tax administrations and recommendations

for improvement, to long-term programs for assisting tax officials of foreign governments in

devising and installing tax administration modernization on a broad front. The scope depends on

the desire of each country. Activities include programs involving audit, collections, tax fraud,

systems, training, data processing, organization

and management, personnel and budget administration, etc. During the year 27 Service tax

specialists were assigned to 10 countries in Latin

America on short- and long-term tours.

Observation and study programs in the United

States for visiting foreign tax officials range in time

from one day to several months, and in scope from

a single Internal Revenue program, to a study of

the entire administrative structure and the major

Service programs. Visits are made to the National,

regional, and district offices. The status of foreign

visitors range from those at high policy levels to

technicians at the working level, although most

occupy positions carryi.ng supervisory and program

responsibility. During 1963 the Service received

over 200 foreign visitors from more than 35

countries.

TAX CONVENTIONS

Discussions took place abroad with four countries

with a view to the conclusion of one new income

tax convention and three conventions supplementing those already in existence. The texts of such

agreements were in various stages of development

at the close of the year.

A supplementary protocol to the Japanese income

tax convention was signed on August 14, 1962,

and an income tax convention with Luxembourg

on December 18, 1962.

The proposed income tax conventions with India,

Israel, the United Arab Republic, and Luxembourg, as well as the proposed supplementary

protocols modifying the convention with Japan,

were pending ratification in the United. States

Senate on June 30.

INTERNATIONAL OPERATIONS

In addition to the operation of the foreign posts

at Paris, France; London, England; Ottawa,

Canada; Mexico City, Mexico; S5o Paulo, Brazil;

and Manila, Philippine Republic, the Office of

International Operations conducted a taxpayer

assistance and educational program with 21 revenue

agents from its own and from district offices. This

program involved the actual preparation of 3,583

returns reporting a total tax of $915,284. A total

of 13,134 persons were assisted under the program.

The agents traveled in excess of 110,000 miles,

visiting 98 cities in 51 foreign countries. Agents

also conducted I I schools for military tax instructors

who, in turn, assisted armed forces personnel stationed abroad.

The Director of the Office of International

Operations consulted with foreign tax authorities

in the disposition of 5 cases involving- double

taxation.

Representatives in foreign posts submitted a total

of 143 collateral information requests, 72 for

Intelligence Division, and 71 for other offices and

divisions of the Service.

The Operational Research S taff continued studies

on improvement of all phases of operations, including need for legislation, regulations, special

studies, and dissemination of information in the

foreign area.

Special studies regarding tax abuses in foreign

tax areas resulted in several suggestions for changes

in legislation, regulations, technical information

releases, and manual supplements.

A study on the effectiveness of Section 6046, as

revised by Congress in 1960, resulted in a further

amendment of Section 6046 to require an "inverttory" of foreign stockholdings under certain conditions. As a result of this legislation, by the end of

1963, the Service should have, for the first time, a

complete and current picture of the number and

amount of investments in controlled foreign corporations.

With the completion of the first full fiscal year

of coordinated examinations of United States and

foreign affiliated entities, the value of the efforts

are shown by the following figures:

40 I

INTERNATIONAL ACTIVITIES

Cases referred to Office of International

Opcratimrs ........................... 610

Ca- accepted for coordinated examination. 411

Examinations completed ................. 342

Additional tax recommended ............. $145,000,000

The Office of International Operations now has

a total of 80 audit Specialists in Washington, New

York, Chicago, and San Francisco. Three technical specialists comprise a special advisory group

on problems of pricing and allocation under section

482 of the Code.

The Office of International Operations continued

to render assistance to territorial, protectorate,

commonwealth, and possession governments in

regard to social security taxes and other tax administrative matters as requested. It also performs

much of the administrative work connected with

the exchange of information provisions of the tax

treaties with foreign countries and also collects the

income tax from nonresident alien individuals,

partnerships, and foreign corporations. Income

tax is withheld in accordance with the rates set

forth in the treaties.

Taxes withheld by domestic withholding agents,

taxes remitted by foreign governments, and the

number of information documents filed are listed

in the following table:

Tax withheld from Payments to nonresident alien entities of treaty and nontreaty countries

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

Ads I.--

U.'.1d.. U'-::::::

Denmark.. ------- ........

Finland............ .........

war,

G...c.........

Honour........:.............

),.land

Italy.......

Netherlands Artillor

........

N

.. Z ..tend. .....:

---------

N

P.ki.t "w",. -------------------- .......--.1 ........

Sw.d

a------ ---------------

Union of So

United Kingdom and overseas

0 tinriion ....................

the,:

Nontresty countries by

Form 1042S

By=b.;~i4wrii:_

I art.:

Tax treaty countries

Nort...ty ...

Numberof

Into,...

,ion d"u.

.,nt,

408, 58D

2

'

498

67

8 559

53: I 585

'

256

363

327: 195

889

1, 775

289

2: B17

4

g,3

1: '712

2 659

: 141

3

019

497

27,141 614

41,278

61,641

4D 232

5:477

Thousand d.11are

Tax withheld

by domestic

withholding

agent.

Tax from

toreign1ov.

ernmerfis or

withholding

.Santa -

79,740

2D4

2: 141

38

1 4

71

114

27

2 824

1: 335

177

i02

517

392

4

7

74

1: 56

20, 17

43624

11, 14' 1,7

17, P7

11, 7G8

"I 468

13,358

6

2D7

...........

Total

93,098

204 43

30

15 304

27

2,846

1.33

'

1

77

1

2,002

517

392

5 002

1:96

209at

24

436

31. 44

147

17,534

11,768

699 468

'Includes tax from upon bond Information documents; separate data net .,.liable.

I Noned-Domestic withholding data distributed by country represents Form

042S are for tax treaty countries only,

41
I

42

9

Planning

Activities

GENERAL

Planning is an integral part of tax administration

and is accomplished at every organizational level

of the Service. The Long-Range Plan is the vehicle that translates all planning into a comprehensive system thereby producing a synthesis of

program requirements, operational capabilities,

and resources under different time frames which

provide top management witha framework of

carefully developed priorities for decision making.

The purpose ofa tax system is to guarantee the

long-run fiscal soundness of the policies and programs of Government. The purpose of tax administration is to fully implement the tax system. For

the long-run, this means collecting all of the legislated taxes at least cost. In the short-run, it means

optimizing the revenue collectible with the resources the Government makes available to the

Administrator. Attainment of these objectives

requires the development of an overall plan which

includes both the strategy of long-range planning

and tactical current-year operational plans or

programs that are consistent with the long-range

plan.

SHORT-RANGE OPERATIONAL PLANNING

Provision is made for short-range planning within

the Long-Range Plan by developing specific program guidelines and priorities for the 2 years immediately ahead, which will enable the Service to

progress toward its long-range objectives. Revisions to short-range guidelines and priorities are

made after appropriation of funds for the next

year's operations so that the final work-plans confo~m with available resources.

Detailed work-planning and control systems are

employed in the Service's accounting, returns

processing, delinquent accounts and delinquent

returns activities for analyzing and appraising the

viork which must be done in determining shortrange manpower requirements. These provide for

the step-by-step listing of each operation, periodic

evaluation of the various steps, assignment of

PLANNING ACTIVITIES

appropriate priorities to the various work phases,

and the allocation of manpower to meet predetermined priorities.

The principal device for allocating manpower

is the Financial Plan which translates annual

appropriations into allotments for the Service's

various offices and activities. This is the final step

in the Service's budget cycle and represents the

culmination of planning which begins with the

Long-Range Plan and preparation of annual budget requests. The Plan is subject to modification

during the year as needs arise and to the extent

that compensating or supplementary resource

changes are possible.

LONG-RANGE PLANNING

The Long-Range Plan isa coordinated action

program designed by all components of the Service

to eliminate operating deficitricies and anticipate

and prepare for the future needs of an adequate

Federal tax administration system. The Plan constitutes the Service's basic planning document and

provides the foundation for the development of

the Service's work plans and budget requests.

The Service's initial Long-Range Plan was

developed in 1959 and is updated each year. The

1963 edition developed by the National Office in

conjunction with regional and district officials,

covers the 10-year period from 1961 through 1970.

This plan includes objectives for all of the opera.

tional aspects of the Revenue Service, together

with estimates of the manpower requirements and

costs to reach desired objectives. It also includes

estimated tax yields resulting from increa'sed

enforcement effort.

In order to develop the Plan most effectively,

more detailed information must be obtained ina

number of problem areas where information is

lacking. These areas involve (1) the size and

nature of the total tax administration workload;

(2) the portion of the total tax administration job

that is accounted for by current operations;

(3) the portion of the total tax administration job

that is left undone; or the gross tax administration

gap; (4) the level of taxpayer compliance; (5)

changes in the level of taxpayer compliance, and

whether compliance is increasing or decreasing

under existing programs; (6) the effectiveness with

which current operations are being conducted;

and (7) the net tax administration gap, or that

portion of the gross tax administration gap that is

worth closing.

To obtain data relating to these problem areas,

the Service has developeda Taxpayer Compliance

Measurement Program (TCMP), which will pro.

vide new information in at least

3 areas: (1)

delinquent accounts, (2) delinquent returns, and

(3) correctness of returns filed. Also, the informational aspects of TCMP include bringing together

and coordinating into one comprehensive system

all information required to measure the dimensions

of Federal tax administration workloads, their

trends and projections; the related requirements,

such as manpower, training, equipment, and

buildings; and the basic economics involved, such

as costs, direct and indirect tax yields, and improvements in existing cost-yield ratios. TCMP

is the Service's long-range research program designed to provide the information needed to

implement the Service's Long-Range Plan and

optimize Federal tax administration.

RESOURCES UTILIZATION

On December 17, 1962, the Committee on

Resources Utilization submitted its report to the

Commissioner. The report contained 72 recommendations relating to the organization ar d procedures of both National and field offices. By the

close of the fiscal year, action had been taken on

those recommendations which concerned the

organization offield offices (see page 48). Evaluation of other suggestions of the Committee is to

follow implementation of these field realignments.

The Service is currently making plans to establish

a permanent resources utilization program with

coordination responsibility centralized in the office

of the Deputy Commissioner. Under this program,

selected divisions of the National Office wculd

undertake regular programs ofresearch and analysis

to assist the Commissioner in evaluating the

activities and costs of the Service, and in allocating

resources among them. Also, manpower utilization would receive increased emphasis in the

National Office Review Program, and the several

management development programs,

SYSTEMS REVIEW AND COORDINATION

Continuing attention was given to the modernization of tax administration through the planning

43
ANNUAL REPORT

and design of total systems for implementing I

,

egislation and for improving current or proposedprograms. Systems development projects during the

past year included the following:

(1) The Introduction of Advanced Equipment into

the Senice.-Priiiects in this category relate both

to the introduction of new types of advanced equipment into the Service as well as to the study of

the equipment already scheduled as part of the

automatic data processing system. Examples of

the former are the development of specifications

and the analysis of manufacturers' proposals for

the procurement of a microfilm printer, the acquisition of a desk size computer for small, specialized,

computational applications and preliminary studies

of devices for electrical data transmission and optical character recognition.

Examples of the latter are the development of

testimony for Congressional hearings on automatic

data processing, studies of lease versus purchase of

computers, and cooperative studies with operating

personnel of computer components and procedural

improvements in the Service's ADP system.

(2) New Uses in Tax Administration for Advanced

Equipment.-The projects in this area include both

consideration of the entire range of tax administration problems tHe solution of which might lie in

the use of advanced equipment, as well as the

achievement of new purposes from the Service's

ADP system. Examples of the former include the

use of information retrieval techniques in the legal

and related administrative aspects of the Service's

operations, an operations research system, a quality

control system, and an integrated budgeting,

personnel, and payroll data processing system.

Examples of the latter include ways of improving

the identification of delinquent taxpayers under

the ADP system, the conversion of Statistics of

Income processing from Census Bureau equipment

to Internal Revenue Service equipment, improved

methods of classifying and selecting tax returns

for audit examination, the use of information

returns under the Service's ADP system, and orienta ion of the depositary receipt system in light of

that system.

(3) Systems Studies Not Involving Advanced Equipment.-These studies include a number of systems

design projects in which improvement may be

achieved by readily available electrical or mcchanical equipment.

44

at CHAPTER NINE

(4) Public Compliance Aspects of Tax Administration

Systems.-Projects in this area involve consideration

of ways in which compliance by the taxpaying

public may be directed toward maximum benefit

to the systems used in tax administration.

The major projects in this area are the public

compliance aspects of the taxpayer identifying

number system and the expanded information

return system enacted in 1961 and 1962. Other

studies relate to the possibilities of receiving

information returns in magnetic tape form from

certain employers and payers of dividends and

interest; and, in the alternative, of receiving such

information in paper form readable by optical

character recognition equipment.

(5) Advisory and Educational Activities.-These

include consultation with tax administrators representing State taxing agencies or foreign countries, dissemination of systems information to

Service officials, and exchanges of information

with persons both in and out of the Service concerned with systems work.

CURRENT RESEARCH PROGRAM

Research activities were both accelerated and

broadened in order to meet expanding demands.

The needs for analysis of adminikrative facets of

current legislative proposals continued, as in prior

years, to absorb a major portion of research resources. This year, however, increasing consideration was given to internal management and

operating problems, which stemmed from two

sources: the planning necessary for following up

various aspects of the 1962 tax legislation, and the

problems encountered in the wake of expanded

application of the automatic data processing

system.

Numerous studies of the administrative impact

of 1963 proposals for new tax legislation included

such matters as changes in the treatment-of deductions, optional tax tables, withholding methods,

and averaging of fluctuating incomes.

Expanded information reporting for interest,

dividends, and patronage dividends, required by

the Revenue Act of 1962, focused attention on the

need for new, integrated techniques for achieving

more effective utilization of all information documerits. An experimental program has been developed to provide streamlined techniques to

PLANNING ACTIVITIES

resolve apparent discrepancies resulting from mass

computer comparisons of information documents

and tax return data, and to furnish a comprehensive

system of compliance follow-up. Additionally,

plans are being developed for utilizing information

returns from domestic owners of 5 percent or mor,

of stock of foreign corporations.

Studies designed to provide information for

dealing with operating and compliance problems

included a survey of the nondistribution-ofincome practices by complex trusts; a survey of

the frequency and characteristic uses of different

classes of tax returns within the Service: and the

drafting of implementing regulations, together

with designing of standard forms, to give effect to

the recommendations made last year for simplification in the use of powers of attorney by taxpayer representatives.

STATISTICAL REPORTING

In preparing and publishing Statistics of Income

reports as required by Section 6108 of the Internal

Revenue Code of 1954, the Service during fiscal

year 1963 continued to add to the statistical information available about the operation of our

tax system. A planned byproduct of the measurements needed for fiscal policy determination was

the financial profile of taxpayers drawn from tax

return data. A list of Statistics of Income reports

published during the year appears on page 72.

An increasing proportion of more complex

returns characterizes taxpayer response to the

operation of our tax system. Individuals itemized

deductions on 41.1 percent of the returns they

filed for 1961; the comparable figure was 33.7

percent for 1957. There is continued growth in

the number of returns with schedules needed to

summarize.the varied aspects of business activity.

The following tables reflect these and other characteristics of returns filed which, by adding to the

complexity of the work, constitute one growth

factor in the Service workload.

Under the terms of Sections 7515 and 7809 of

the Internal Revenue Code as amended by Public

Law 87-870 (87th Congress, Second Session) the

Service was permitted to receive reimbursement for

special studies and compilations furnished to

private organizations and nonfederal government

agencies. The Service may prepare special statistical studies and compilations involving data

from tax returns and use the payments to reimburse

the appropriation which bears the cost of such

work. The authority to make these studies and

compilations is evidence of Congressional recognition of the wealth of statistical information availabl c

on tax ret

.

urns and related documents. Already

14 users availed themselves of the provisions of

this new public law.

Individual income tax returns: Number of returns and sources of income

A. Number of returns

All indilicluxilM.m., t.l.l------------- ------------------------------------ ............

Taxable---------------------- ------------------ -------------------- ........ -

Nontaxable------ ---------------------------------------------- ..................

Returns with itemized deductions, total.- --- - -------- ------------- ..................

Ta.xbl.~ ------------ --------- - ........ ------------- ............... Nontaxable................ --------------------- - ---------------- ........ ---

Returns With standard deduction. total. ------------ --------------------------------

Taxable ----------- ------------- - -----------------------------------------

Nont... bi ........................................................................

8. sources of income

All imil idulicharms: Adjusted times income, total ............ ........... ..........

Urns. and

Business or pro W jan--------------------------------------------------------------- ------------------ ----------- ---------- .......... - Dilidard. recthwed ----- .................... -- ------------ ------- .........

Interest lec.illd.. --------------------------- -- ............... .......... Rents,rd myralfies.-- ........- .......... --........ ... -----..... Other Iroom-------------------------------------------------------------- ------

11.1s.-It.t. ma, u.1fitul as tex.bl. are these nrinni.1 income is. it,, credit,.

Income year

1951 I .,,. 1 -1 1 is. it"i,

(Thousands)

61,499

48,583 12,917

25.2G2

23,258 2.004

36,238

25,325 10,913

329,861

266,902 22.630 9.890 5,683 3.264 21,492

61.028

111,967 111

2.

24.083

21,811198 1,

36.945

11ji:1...11

315,4613

257, 21, 091' 72 9 530 5:0571

3

11: 3Us1

60,271

-

17:7117 12

74

22.510

101:,1,191

-

37,761

21f1:07316

2

(MillJon dollar.)

305, D95

2427 370 1:431 9

356 4:2395 3

,

El: 3W3'

59,085

11,152

3,433

20,811

1111 1,758

38,274

67'5

281,154

227 551 20:674 9 741 3:659

.31:3'0'4

-

59,925

46,865 1

2~960

20,155

11:15811

39,670

111,:23974'

280,321

228 077 20:339 9,12, 3,319 3:259

16 202

45
ANNUAL REPORT a CHAPTER NINE

ReCeiph and profill, repoited by boinesses,

A. Isiof b.,I.- I..,

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

Corporations..

s =61areihl~---------------------------------------------------- Pa... -------------------------------------------- -------------- --------------

P: P-------------------------------------- --------------- --------- -

Bust.... ..turn, with net prolit---------------------------- - -- ---------- --------

Corporations...

solo pwriators III1P------------------------------------------------------------------ ...... -------------------- -------------------------------------

Partnerships..--------------------------------------------------------------------

Business returns without not pmfiL.------------------------ _--------------------------

B. Business maiptai

Tated b.11r.al rat-nas --------------------------------------------------------------------

Co,partilln- ----

le . ~i------------------------------------------------------------ ------

SoPartnerships "'Priat----------------------- " p------------------------------------------ - --- I----- -----------------I------------

Business turns with net prafil--------------------------------------------------------

Corporations ---6------------------ ------------------------------------------------ Sol, pro nature Ips_ -------------------------------------------------------------

Partne%ps.. --------------------------------------------------------------------

Business returns without net pr.fiL-------------- ---------- ----------------------------

C. Business Profits

Net pn.fit' Is. loss I

Total business red- ------------------------------------------------------------------- _

sale p.it'ie" -----------------------------------------------------------------

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

Partnerships --------------------------------------------- ----------- ------------

Net profit -

Business returns with not profit ---------------------------------------- ----------------

CD,r,porations, .------------------- -------------------------------

so - pz!iobor&hips_ --------------------------

Win. .1n ----------------------- -------------------------------------- --------------------- -------

Net Is. -

Business returns. ------- --------------------------------------------------------------

1961-62

11,371

1 190

9:242

939

8,738

716

7 294

728

2,633

1,065,708

920 773

170:9813

'954

n...

151,761

76,918

425: 2 1,372

1,

8,689

$7,616

25": 15"1

9.7.

10,698

196D-61

11,172

I~ 141

9,M

941

8,516

670

7 107

'739

2,656

In.-Yea,

1959-60 195&.59

(rha-.dl)

11,165

1,074

9,14

9.91

8,650

671

7,121 759

2,515

(Million dollars)

1.046,819

802 791

171:257

72,771

902,404

685 692

151: 837

64,875

144,415

72,932

13: 505

1 067

8,360

94,024

50 3112

24:269

9,373

11,092

1,026,167

772 915

176: 205

77,047

BONI, 787

682 186

156:773

69,828

117,390

(million dnlla.)

77,159

4(1: 2 797

1 17

8,945

86,081

51,651

24,709

9,721

8,922

10,744

990

8, 8DO

954

3,531

611

1,11, ..

2,213

938,228

696 594

163:399

18,235

815,117

599 576

147:152

68,089

123,111

67,417

38 523

20:778

8,116

75,916

43,49D

23.339

9,087

8,499

For Z

h.s.-Not available. *

Note.-The income year 1961-62 oven shooonting periods ended July 1961 through Juno 1962. Other inome Years met onesponding periods.

The Service awarded a contract to Dr. W.

Edwards Deming, consultant in statistical services,

Washington, D.C., for an evaluation of sampling

procedures used by the Service to obtain tax

return data and for his recommendations for

improving the quality of estimates published in

Statistics of Income. Dr. Deming completed his

report in June 1963. The Service also awarded a

contract to the National Planning Association,

Washington, D.C., for developing the historical

and projected economic series required for

preparing projections of the number of returns to

be filed in each State. The National Planning

Association also provided detailed methodology

10,649

940

8,7938

71

8,446

573 ,,94

779

2,203

931,00)

694, U3

2:61

83 430

912,378

'1'4'1: 3657

71,419

1111,622

73,454

44 476

20:220

8,758

80,983

48.664

22 806

9: 513

7,529

useful in updating the projections of the economic

series.

A library of computer tapes was expanded.

This library makes available to research workers a

flexible source of data to supply information on

items, classes, and relationships that will vary

from time to time. The library consists of a

C411apilete file of the ~~atiit_i~~-cf Income sa'mptle

of returns. I t will be maintained for a 3-yezir

period and, in addition, a subsample of the

Statistics Of Income files which can be referred to

as a model will be kept indefinitely.

The Treasury-Interrial Revenue Service Committee on Statistics, established last year to advise

46

PLANNING ACTIVITIES

on the content of statistical publications, standards

of quality, and timeliness of publication, was

continued during 1963. The names and affilia.

tions of the members of the group are listed in the

1962. Annual Report. The group met on four

occasions: March 30-31, 1962; May 25-26, 1962;

October 1, 1962; and April 29, 1963. At each

meeting there was a careful review of the statistical

program and an evaluation of proposed changes

and recommendations regarding selected courses o?

action. In compliance with provisions of Executive Order 11007, the Committee terminated on

June 30, 1963.

47
MANAGEMENT ACTIVITIES I

48

10

Management

Activities

GENERAL

The goal of the Service during the year has been,

in the words of President Kennedy, to operate

"a lean, fit, and efficient" organization. Emphasis was placed on good management, with particular attenti.on to economy, efficiency, and effectiveness. More specifically our efforts have been

directed toward eliminating unnecessary overhead,

shortening communication lines, and channeling

maximum manpower to frontline enforcement and

revenue producing activities.

MAJOR MANAGEMENT IMPROVEMENTS

Increased stimulation and leadership in management improvement efforts resulted in an alltime

record of over $11.6 million in annual recurring

savings in 1963. These savings reflecta cooperative effort spearheaded by top management

officials actively supporting the objectives of the

Management Improvement Program.

The Service also actively seeks to keep its

managers in touch with new and improved methods

by participating in management courses, seminars,

and institutes conducted by other Government

agencies, universities, and professional associations.

In 1963 approximately 125 officials attended such

outside training sessions. In addition, the Administrative Intern Program designed to recruit and

train promising participants for future high-level

duties, stresses the importance of management

improvement in formal courses and on.the-job

training.

Many management improvement actions result

in improved operations rather than measurable

savings. However, below are several of the more

significant accomplishments initiated during 1963

which resulted in tangible savings and which are a partial indication of the vitality of the Management Improvement Program.

Realignment of Field Oftes.-Secretary Dillon

gave final approval on May 17, 1963 to the following field office realignment plan, effective

January 1, 1964:

(1) Reduction in the number of regions from9 to

8. This was accomplished by combining the

Chicago and Omaha regions and redistributing

certain districts to the Dallas, Cincinnati, and

Philadelphia regions. The new lineup of States in

the affected regions is-

(a) Chicago Region-Illinois, Iowa, Minnesota,

Missouri, Nebraska, North Dakota, South Dakota,

and Wisconsin;

(b) Cincinnati Region-Indiana, Kentucky,

Michigan, Ohio, and West Virginia;

(c) Dallas Region-Arkansas, Colorado, Kansas,

Louisiana, New Mexico, Oklahoma, Texas, and

Wyoming;

(d) Philadelphia Region-Delaware, Maryland,

New Jersey, Pennsylvania, Virginia, and the

District of Columbia.

(2) Reduction in the number of districts from 62

to 58. This was accomplished by merging the

Camden District into the Newark District, the

Syracuse District into the Buffalo District, and the

Kansas City District into the St. Louis District;

and dividing the Scranton District between the

Philadelphia and Pittsburgh districts.

When fully implemented the realignment of field

offices is expected to yield recurring annual savings

of approximately $3.5 million with no decrease in

taxpayer services or overall effectiveness.

In addition,a program was initiated to reduce

overhead supervisory and administrative costs in

the districts-particularly the smaller districtsto minimum operating requirements. Under this

program, each division or branch chief vacancy in a district office is to be examined for the essentiality

of the position before it is filled.

Cathode Ray Tube Equipment.-A contract was

awarded for procurement of an electronic microfilm

printer and 75 associated high speed film viewers.

By use of this equipment filmed registers and

directories will be substituted for mechanically

printed lists. Eventual savings are estimated at

$600,000 per annum, $520,000 of which will be

saved on equipment and supplies, when fully

implemented.

Variable Key Punchingo.f Data from Individual

Returns.-A method of key punching tax data on a variable basis, as opposed to a "fixed field"

technique, resulted in an estimated $250,000 savings

to date. By 1967 it is anticipated that annual

recurring savings of 81 million will accrue by use

of this new method which utilizes the principle of

707-151 0-63-5

punching only data reported by the taxpayer that

is needed for processing purposes.

Streamlined Training Programs.-The Service continued to take a critical look at training programs

witha view toward refining and improving them

without diminishing their quality. As

a result,

numerous courses have been shortened to the

extent that approximately S1.9 million will be

diverted to productive enforcement activities each

year.

Use of Technical Aids in Investigative WorkA study was initiated to determine the use and

value of technical aids such as portable photocopiers, tape recorders, microfilm readers and

printers, portable microfilmers, handie talkies,

and cameras. The study indicated that the

Service is making extensive use of these aids

thereby saving at least $688,000 annually. Asa

further benefit, technical aids in the investigation

of cases assisted in securing evidence which other.

wise would not have been obtainable.

Reports Program.-A continuing review of reporting requirements to insure quality reports at

the least possible cost resulted in redirecting

manpower worth $1.4 million from the preparation

and use of reports to other operations. Changes

in reporting ranged from modification of record

cards to major revisions in some areas of the

Service's reporting system.

The Reports Program is designed to take full

advantage of mechanized and electronic systems,

while keeping in mind that some types of reporting are more adaptable to manual processes.

Intangible Savings.-Many management improve.

ment actions not readily adaptable to measurement

of exact monetary savings nevertheless release substantial manpower and other resources for use in

more critical areas. Noteworthy examples are

the work planning and control systems in accounting, returns processing, delinquent accounts, and

delinquent returns activities. These systems include a step-by-step listing of each operation,

periodic evaluation of the various steps, assignment

of priorities to phases of work, and allocation of

manpower to meet the priorities. The constant

review of these systems and subsequent improvements have led to standardized work achievements

in all districts and regions and the channeling of

available manpower to tasks of the highest priority. A new program, known as the National Office

Review Program, involves

a shift in emphasis

49
I

ANNUAL REPORT a CHAPTER TEN

from "mass" team visits to field offices, to visits by

a small group of top officials. In addition to improving management review and control of field

operations, this new program is expected to result

in substantial savings in manpower and travel

funds, and will eliminate several lengthy, formal

reports.

There has been an increased use of mass communications media to inform taxpayers of tax laws

and regulations and to create confidence in the

voluntary compliance system. Although difficult

to measure, there is no doubt that this increased

dissemination of information has led to increased

voluntary compliance.

Disposition of Savings.-Savings resulting from

management improvement projects, both tangible

and intangible, are channeled into work areas

where the application of additional manpower

serves to strengthen the enforcement effort, reduce

backlogs, and improve taxpayer service.

PERSONNEL

The personnel administration program was

highlighted by efforts to improve manpower utilization and maintain the high level of employee

morale. Significant changes and innovations were

made in the incentive awards program, and continued progress was made in ADP redeployment, the summer student program, and employeemanagement relations.

Automatic Data Processing Staffing and Redeployment.-Considerable progress was made in the

redeployment of employees affected by the conversion to automatic data processing. To date,

2,500 employees have been redeployed successfully

out of an estimated 5,500 who will eventually be

redeployed as a result of the installation of the ADP

system. Of particular interest was the significant

advance made in staffing the first regional data

processing service center in Atlanta, which now

has 754 permanent employees. Part-time employees reached a peak of 954 in February.

The Labor Department's Bureau of Labor

Statistics completed a study of the "Impact of

Office Automation in the Internal Revenue Service." The report describes in detail the initial

stages of conversion to ADP, and comments

favorably on the Service's redeployment program.

It will be published later this year.

Attitude Survey.-An attitude survey, similar to

one which proved successful in the Philadelphia

District as a tool for highlighting areas requiring

management attention, was conducted in the

Milwaukee District. The survey showed that

employees generally had a strong dedication to the

mission of the Service and were satisfied with their

work. It also spotlighted certain weaknesses in

the promotion program and in first-line supervision.

Actions have been initiated to deal with areas

requiring further attention. Plans have been

made for extension of the survey program to other

offices.

Recruitment.-Emphasis continued in recruiting at

colleges and universities for entrance-level professional positions. Recruiting brochures were mailed

directly to about 60,000 students, in addition to

those distributed by district and regional offices.

These pamphlets describe the benefits and oppori.unities of a career in the Internal Revenue Service.

An earlier suggestion that district directors enCourage schools to call on them for speakers before

,tudent groups and classes was reemphasized as a

public service as well as a recruitment device.

The number of employees at the close of the year

and the man-years realized are shown in the

following table:

Perecinnel summary

mim-yua. Number an rolls

Lacetion and type realized at close of yet,

1963 1962 1963 1962

Service, total... -------_------- 59.711 56,481 59,486 561510

Permanent-... -------- ----- 56 403 53 373 56 374 53,928

Temporary ---------------- _ _j~sitlf _jLlbj 3~ 112 2,582

N

a

tional Office ----------------- ------- 1

-5

657 TY.4617 -3,56 -3-. 5"

Field service, totel .... --------- ----- 56'054 53,080 55,925 53.15

Data prec-irl, total--------------- -FF-8-5v-

--15123

Is

___

T

' 46

3

14' 46 Ilection, Intel_ ............ ---- 10,022 9~. 143 10,263 9,448

Revenue officers- .------------- 6 32 1 5,804 6,374 5,961

Other. - - ~ ---------- ---------

3 : 70

3.339 3.989 3,587

Audit, test ....................... 79-, 7 7T -f8,,SF9- -1-9-,-84T ~I 8

R-mo. agents 12,469 11,859 12,442 11,942 office

can audit

-

Other ---- ----

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

3

121s

4: 7

3

3:6111 "

3:

'

7

4 3314

3:0027

4

11

Intelligence, total. ---------------- -E-28-I -2-F60- 2-2-99 -2-2-01

Special agents.. .. -------------

1'

687 1,606 1,691 1,624

Other.-. ------------_------- 594 554 608 577

Alcohol and tobacco tax. toul -2-,-94-=__2,8_1 F 2. Us

Investigators .........

...

1,002 '21

"' '

71

------------------ .2 4

5

43

7 44

1

Stineksam-gaugers............

Oth....... ...............

Soo

904)

!68

903

494

893

522

907

Appellate, total -------------------- =17 ~~39T ~1417 T-.40

Technical ed,i.............

625

117 121 65

A.d.tor-... ----------------

1455

as 1

47

1

4.

Othir-_------------- ......_ 647 633 642 647

Administration --------------_---_ 2,364 2,4

Regional Counsel ----------- 770 756 76 _9" 776

Regional inspection --------- 605 517 608 566

I Includes terminal leave man-years for entire Service.

ud Office of ud:s Intennabonal Operations.

~ al ... Isess, irmuloyees hired locally 4 in 1963 and 3 in 1962). ':n'! a

50

MANAGEMENT ACTIVITIES

Civil Service Commission Program Review.-The

Civil Service Commission in its coordinated

nationwide review of personnel management in

the Internal Revenue Service, found that the

Service's recruitment, ADPredeployment, program

review and evaluation, and career planning

and systematic employee development programs

were noteworthy. It recommended classification

changes in only 0.4 percent of the positions, compared with a governmentwide rate of 4.0 percent.

Of special note was the Commission's overall

summary that ". . . personnel management is

woven into the total management fabric of the

Internal Revenue Service to a remarkable degree,

and it is characterized by a professional approach

on the part of the responsible managers,"

Executive Selection and Development Program.-The

Service continued its well-established Executive

Selection and Development Program as the

source of appointments to all positions of assistant

district director and assistant service center

director. During the annual selection process,

424 qualified persons from the Service, as well as a

number of managers from other agencies, were

considered. Of these 10 were selected to participate in the program.

Summer Student Assistant Program.-The summer

student program which proved successful last year

was expanded this year to provide for increased

participation in field offices. On the basis of

faculty recommendations and scholastic records,

60 law and undergraduate students were selected

to work in the National Office and over 100 in

field offices.

Employee-Afanagement Relations.-Primary emphasis was placed on strengthened employee-management relations, including relationships with organized employee groups. This program consisted, in part, in setting up an election process for

handling requests for exclusive recognition from

organized employee groups, and issuing a pamphlet

for all employees explaining the features of the

program. Also issued, and later refined, was the

Service's policy and procedure to ensure an

affirmative approach in dealing and consulting

with organized employee groups. Under the

established election process, elections have been

held in 31 Internal Revenue Service offices.

Through open elections, 29 chapters of the National

Association of Internal Revenue Employees won

the right to exclusively represent 146 units, made

up of 13,038 employees in the 31 offices.

A dcpartment-wic(c training course for hearing

officers was developed to insure that employee

appeals of adverse action would be handled in

accordance with new procedures prescribed by the

President and the Civil Service Commission.

To give officials more personnel management

responsibilities, Assistant Commissioners have been

delegated authority to take final action in adverse

action cases involving employees under their

jurisdiction and to approve outstanding performance ratings.

Incentive Awards Progrant.-A major accomplishment was realized this year in strengthening

administration of the Incentive Awards program.

Approval of awards with. intangible benefits, together with authority to take final action, was

delegated to the lowest practicable level. Suggestions and award recommendations are now

reviewed through functional, rather than administrative, channels. In addition, processing procedures were simplified and reporting requirements reduced. Another development was the

establishment of the Commissioner's Award-the

Service's first exclusive honor award.

Equal Employment Opportunity Program.-The Service has continued its emphasis on appointing and

promoting qualified minority people to high level

positions. In the South the number of Negro

employees in professional and technical positions

increased from I I to 22. Albuquerque, Austin,

Little Rock, Oklahoma City, Birmingham, Columbia, Jackson, and Jacksonville, have now been

added to the list of offices that have Negroes in

revenue agent, revenue officer, and tax technician

positions.

Recruitment trips to predominantly minority

group schools have succeeded in arousing interest

in employment opportunities and have brought to

the attention of school officials the Service's occupational requirements so that they may alter their

curriculum to better qualify their graduates.

TRAINING

A new Law (Public Law 87-870) provides that

representatives of local, State, and foreign governments may participate in Internal Revenue

Service training courses. With the assistance of the

National Association of Tax Administrators ex51
I

ANNUAL REPORT* CHAPTER TEN

plorations were begun to determine to what extent

and on what basis the Service can assist State

governmepts in meeting their tax enforcement

training needs. A "Tax Administration Orientation for Foreign

Tax Officials" program was launched to make

official visits of foreign tax officials more meaningful and helpful. The program developed by

the Foreign Tax Assistance Staff and the Training

Division, includes presentations by the Commissioner and other top officials. Approximately

50 foreign tax officials from 25 nations participated

during the year.

Plans for establishing experimental training

centers were initiated by setting aside funds for

installation of the first regional training center in

the San Francisco Region in 1964. Establishment of an experimental national training center

awaits only the selection and availability of an

appropriate site.

The Commissioner's Committee, set up in 1962

to survey training needs in the collection enforcement area, completed its study and submitted a report proposing a comprehensive career

training plan. Action was immediately begun

to implement the Committee's recommendations.

Courses were planned or developed to train

(1) alcohol and tobacco tax special investigators in

laws, regulations, techniques, and procedures,

(2) office audit group supervisors in functional

management techniques, (3) audit personnel in revised standards and procedures used for determining depreciation for tax purposes, and (4) key

punch supervisors in their management problems,

and certain administrative personnel in specialized

fields. Other new programs were launched (1) to

familiarize collection personnel with the impact of

automatic data processing on that activity, (2) to

train special agents assigned to the Organized

Crime Drive, (3) to train internal auditors in the

effects of automatic data processing on their work,

and (4) to train audit specialists in the examination

of exempt organizations.

The3 basic accounting correspondence courses

(fundamental, constructive, and corporation) were

converted to machine scoring to expedite the return

of graded papers to the students and to accommodate the increased number of enrollments resulting

from automatic data processing redeployment.

In June 1963,a committee of4 distinguished

training consultants, appointed by the Secretary of

the -Treasury to review the total training effort of

the Service, submitted its report. It described the

program asa whole as "very commendable," and

madea number of recommendations for further

improvements.

FACILITIES MANAGEMENT

Space.-Most regional and district offices are now

in, or have firm commitments for, good space.

Many of those offices having firm commitments for

new space will move next fiscal year; others are

awaiting the completion of new Federal office

buildings and will move during the next2 or3

years. This progress is particularly gratifying and

significant in retrospect. Approximately

2 years

ago comparatively few Service offices were properly

housed.

Additional space was obtained for 209 offices to

relieve crowded conditions and accommodate staff

expansion. The following offices were moved into

new or modernized buildings: Birmingham,

Toledo, Burlington, Hartford, Parkersburg, Philadelphia, and Jacksonville. A significant accomplishment was the beginning

of construction ofa 21-story, 374,000 square foot

leased building for the Manhattan District. The

problem of proper housing for some 3,000 employees in Manhattan has been pressing for several

years. Construction has proceeded rapidly and the

building is expected to be ready for occupancy by

November 1, 1963.

Progress is also being made toward correcting

acute space problems of the offices in Chicago,

Wilmington, Miami, Brooklyn, Cincinnati, Denver,

San Francisco, Seattle, Dallas, Hollywood, and

Aberdeen.

Construction was started on the regional service

center buildings in Austin and Philadelphia. Each

building, containing over 200,000 square feet of

floor area designed for automatic data processing

operations, will be ready for occupancy in early

fiscal year 1964. Negotiations with the General

Services Administration are nearing completion

forthe major renovation of an existing Governmentowned building in Kansas City, Missouri, which

will house the Chicago Regional Service Center.

The GSA has requested Congressional approval to

construct Federally-owned buildings for the Boston

and Cincinnati regional service centers and the

National Service Center to be located in Detroit.

52

MODERN OFFICE BUILDINGS

PROVIDE MORE EFFICIENT

FACILITIES FOR

INTERNAL REVENUE SERVICE

FIELD OFFICES

Internal Revenue Service Building

Birmingham, Ala.

110

00

-0-10

U.S. courthouse and

Federal office building,

Hartford, Conn.

Federal office building,

Toledo, Ohio

53
ANNUAL REPORT as CHAPTER TEN MANAGEMENT ACTIVITIES

'i

Working cooperatively with the GSA, the Service

is revising and expanding its Space Occupancy

Guide, to cover local and branch offices as well as

regional, and district offices. This publication,

when reissued in fiscal year 1964, will also reflect

significant changes in partitioning requirements

for revenue agents and officers, office auditors,

and special agents. The new bank-type partition

cubicle concept, which has been adopted by the

Service, will provide work privacy fora large

number of technical employees as well as interview

privacy for taxpayers.

Records and Paperwork.-This year's records and

paperwork management activities were directed

toward keeping abreast of the steadily increasing

accumulation of tax returns, related working

papers, and other documentary materials received

and produced by increased returns processing and

revenue enforcement workloads. More than

252,950 cubic feet of records were retired or

destroyed, thus making available for reuse urgently

needed space and equipment valued at more than

$1 million. Because of this continuing emphasis

on records disposition and vigorous controls applied

to the creation of official records, there wasa net

increase of less than1 percent in total records

holdings, even ~hough almosta million more tax

returns were filed and records produced by IRS

reached an all-time high with the installation of

additional phases of the automatic data processing

system. Records holdings and dispositions arc

shown in the following table:

Records holdings and disposition activities

Status

In Internal Revenue Service custody, beginning of year

Disposed of, ............__------

Destroyed ------------------ ____........._

Retired to Federal Records Center.. ---------------

In Internal Revenue Senriurr Custody, end of year-. ------

Volume of records

(cubic feet)

1963

579,618

252,952

107,301

145,651

593,687

1962

601,251

229,396

100,356

129,040

579,618

Continued attention was given to the development and standardization of needed forms and

form letters and the elimination of unnecessary

ones. Asa result, local forms and form letters have

been completely eliminated in 18 district offices;

district prescribed forms decreased by 7.0 percent,

and regional standardized forms decreased by 0.9

54

percent; however, service center prescribed forms

and National Office prescribed forms increased

25.0 percent and F9.0 percent, respectively. The

Service-wide net increase of 3.5 percent in the

forms inventory is directly attributable to the conversion to data processing and increased emphasis

on taxpayer compliance.

The Internal Revenue Service Envelope Handbook, a first in the Federal Government, is receiving favorable comments by users throughout the

Service asa valuable timesaving reference. This

publication identifies and illustrates all Service

standardized envelopes; specifies the form, form

letter, correspondence, or document to be mailed

in each envelope; designates usage points and lists

sources of supply. Its development has eliminated

many proximate sizes formerly used and has permitted centralized contracting for the standardized

envelope sizes.

FISCAL MANAGEMENT

The Internal Revenue Service appropriation for

1963 amounted to $503.1 million, consisting of an

initial appropriation of $486.0 million anda

supplemental appropriation of $17.1 million. The

supplement covered the major portion of the cost

of the pay increase authorized by Congress in

Public Law 87-793, about $1.4 million of which

was absorbed by the Service. The Service also

absorbed the added cost of postal rate increases,

estimated at $400,000, authorized by Public Law

87-793.

The total amount appropriated was $51.1 million

more than the 1962 appropriation. After current

Staff maintenance cost increases were provided for,

the remaining funds were sufficient to finance only a portion of the planned increase scheduled for

1963 in the Service's Long-Range Plan. Provisign

was made in the Financial Plan for continuing the

conversion of returns processing to the Master

File ADP system (including activation of regional

service centers at Cincinnati and Austin); for part

of the initial requirements of the Taxpayer Compliance Measurement Program; and for some in.

crease in enforcement and related staffs to keep up

with the growing taxpayer population and work.

load.

Total obligations in 1963 amounted to $501.7

million (including $0.9 million actual transfer to

General Services Administration) compared with

OBLIGATIONS BY ACTIVITY

Tax fraud and special Investigations

5.3 cents

Alcohol and tobacco tax

regulatory work 6.4 cents

Taxpayer conferences

and appeals 3.4 cents

All other- 7.9 cents

*Includes rulings, technical planning, and special technical

services, 1.6; legal services, 2.5; inspection, 1,6; sta.

tistical reporting, 0.9; executive direction, 1.3.

OBLIGATIONS BY OBJECT OF EXPENDITURE

55
I

I

ANNUAL REPORT a CHAPTER TEN

total obligations of $451.2 million in 1962 (in- man-years actually realized. Table 27on page 102

cluding $1.1 million actual transfer to GSA). This shows obligations by object of expenditure and by

is an increase of $50.5 million in actual obligations. location. The distribution of expenditures by

Man-years realized totaled 59,711 compared with activity in fiscal year 1963 is shown in the following

56,481 in 1962. This is an increase of 3,230 in table:

Obligations incurred by the Internal Revenue S-1ce

(in thousands of dollaral

Total Personnel compensation Other

Activity

and benefits

1963 1962 1963 1962 1963 1962

Total ------------------------------- -------------------------------- 500,804 450,080 "o, 542 396,853 60,262 53,227

Rulings technical Planning and special technical somices,.. ---------

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

7 936 7 OU 71085 6,411 751 657

Collection of mm..__7. -------------------------------------- - - -- -- 200:901 1 79:912 170,153 153 529 30,748 26.393

Audit of tax returns. ------ ---------------- --------------------- 184,867

, 5

631 171,429 15i,921 13,438 12 710

To, fraud and special i,vesti stairs----------- -------------------------------

f

26,577 3

' ..

22 815 20,616 3,762

3

:373

Alcohol and tobacco tax regu ,story work... -------------

Taxpayer conferences and appeals-.. ----- -------------- --------

32.139

17, 101

9:

2 s43

15 677

26:395

16 087

24 921

14:904

5

744

1:014

5 122

'773

legal

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

, ,,

loop 3 11: 751 11:678 10,824 1,035 927

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

Statistical rinniffing..----------- ---------------------

:7

7 3250

4 1

6 610

3 41 1

61348

3 21

444

':718 2

402

1:064 "7397

Executive direction ----------------------------------- 6:600

6:04, :

296 4,665 1,304 1,379

Detailed studies were made of 2 significant

budgetary programs of the Service. The first

study was to determine whether present practi.ces

concerning per them and related costs for employees

in recruit training programs are in the best interests of the Government and are reasonable and

equitable from the standpoint of new employees,

or whether need exists for modification of present

practices. The payment of per them and related

travel expenses to recruit trainees constitutes a

sizable budgetary iteml- particularly during the

period of staff expansion. Final decisions on the

recommendations resulting from the study will be

effected next year.

The second study had the objective of determining whether improvements could be made in

the methods of estimating, budgeting, controlling,

and reporting grade structure changes. This

annual program, including advancement of trainees

to the journeyman level, requires a substantial

budgetary outlay. As a result of the study, a

number of changes will be made in 1964 which

will provide a more effective and uniform control

to insure that an equitable structure, as funded by

Congress, will be maintained.

INSPECTION ACTIVITIES

The Inspection activity provides for an indepcndent review and appraisal of the effectiveness and

efficiency of Service operations through its internal

audit function, as well as an internal security

program to assure maintenance of the highest

standards of employee integrity.

Inspection was founded as an independent

activity to assist top mangement with the problem

ofinternal control by gathering and reporting facts

pertaining to offices and individuals. Often these

reported facts form the basis upon which management takes action to improve operations and the

integrity of the Service.

Internal Audit.-An annual independent review

and appraisal of Service operations as a protective

and constructive service to the Commissioner and

all other levels of management is carried out

through the internal audit program. All field

organizations and activities are covered by internal

audit to determine whether policies, practices,

procedures, and controls adequately protect the

revenue and are being efficiently and effectively

Carried out. The expansion of the automatic data

processing activity to the present National Com56

MANAGEMENT ACTIVITIES

puter Center and 5 service centers, which utilize

high-speed electronic computers and related peripheral equipment, has increased the internal

audit responsibilities of Inspection. Emphasis in

Internal Audit is placed on examination of the

Service functions which are most closely connected

with collection of the revenues and enforcement

of the tax laws, and on coordination with Internal

Security to carry out the integrity program of the

Service.

During the year 355 internal audit reports were

issued, compared with 303 in 1962. The increase

was caused primarily by the separate reporting on

audits of the Organized Crime Drive functions of

the Intelligence activities.

In addition, Internal Audit carried out a number

of special assignments, including participation in

the annual audit of the Treasury Department's

Exchange Stabilization Fund, and provided followup assistance to the Tax Division of the Virgin

Islands Department of Finance, which was reorganized as a result of the comprehensive survey

completed in 1962.

Internal Security.-Successful administration of the

voluntary self-assessment system oftaxation depends

a great deal on integrity of taxpayers and their

representatives as well as integrity and impartiality

.arnong officials and employees of the Service.

The Service continued the vigorous efforts started

the previous year to promote understanding among

its employees, taxpayers, and practitioners re;

garding the importance of integrity and the need

to expose corruption wherever discovered.

Forty-six cases of actual or suspected bribery by

taxpayers or their representatives were reported

by Service employees to Inspection. Investigations

resulted in indictments of 10 taxpayers or their

representatives, and additional prosecutions are

contemplated in a number of pending cases. This

makes a total of 20 persons indicted for attempting

to bribe Internal Revenue employees during the

past 2 years. To date 15 have been convicted.

Investigations completed during the year totaled

10,011, which was 11.8 percent more than in the

preceding fiscal year. This is the highest number

completed in the I I -year history of Inspection. In

addition, police checks were made on 3,413 employees given short-term temporary appointments.

A tabulation of the various types of investigations

and disciplinary actions follows:

Investigation, and disciplinary actions

Type of investigation and action 1963 1962

Total investigations clooved_ --------- 10,011

Personnel investigations

Number of cases closed, total------------------- .........

Character and security inustig.fiers

Conduct. investigations. _. ~..............

so...[ uAviN............. ------- .................

Actions taken by Service

Pe,sonn.l~ngeesmtieg~attiooffnlscials me a as a result of

8,626

5,036

771

2.819

Disciplinary actions, total......................... .......1 S48

Separation$, total -------

Bribery, extortion, or

Ennfi.ximmm, m, the,, of G _fWjj_;jFalsification or distortion of Government repojis,'

records, etc ---------- _............

thrauthorived outside activity..

Fail-to di,ch. .Itip duties p,!,;Wi

Refusal to cooper

. ... ....

Divullence of confidential information . . .......

11-obinof

Person a.it other to iuxcond.cf..::::

Suspensions from duty and p.y._ ......

Reprim nds,

.in

.ip, reassignments, trinsfers, or

it not

Mondiscipirliq am ""'ii,-o-nis,......................................

Otherin...ligation,

271

16

17

17

13

1

951

42

535

7,778

Number .1 clinovd, total........... ................. 1 1,385

Apt.licafionSs forv admission to Practice before the Internal

icp....................... ........

Charges against enrollus_...____

...

___ .31

Federal tat claim---_------ ...............

7

168

Attempted bribery............ 47

D-lon-fion

2

investigations 415

8,956

7,701

5,017

665

2.019

639

215

5

15

15

69

B

I

2

83

34

390

7.062

1,255

"I98

153

I'3

335

-

include, resignations, retirements, or other separations while employees .,,a

under investigation or before administrative decision was made an disciplinary action where investigation disclosed derogatory information.

ENROLLMENT OF PRACTITIONERS AND

DISCIPLINARY ACTIONS

General.-The Office of Director of Practice continued its program of revitalization, which resulted in various changes in regulations governing

practice, a modification of the Special Enrollment

Program, and increased vigilance with respect to

the ethics of all types of practitioners.

Amendments to Treasury Department Circular 230

(Revised 7958).-In order to conform the eligibility

requirements for practice, as set forth in 31 CFR

Part 10 (Circular 230), more closely with the

various State rules governing qualification for

the practice of law and accounting, amendments

were made to Sections 10.3(d) (1) and (2); 10.4(d);

10.29; and 10.51(b)(28). Two basic changes

were effected: (1) Attorneys and certified public

accountants are no longer subject to the requirement that they be engaged in the active practice

of their respective professions; and (2) the former

57
ANNUAL REPORT 9 CHAPTER TEN MANAGEMENT ACTIVITIES

I

I

Iineligibility of persons who are full-time employees

of corporations, or of individuals or partnerships

not engaged in the practice of law or accounting,

was eliminated. In addition, the amendments

clarified the provision in Circular 230 which relates to solicitation of practice in any unethical or

unprofessional manner.

Enrollment and disciplinary cases

Type of ea.,

Enrollment 8ppiC8tlQr3:

Approved. ...............

An'"may,_ ------ ........... .......

Agents. ---------_--_----------- _._--- ....

Withdr- Attorneysor ellan oned:

rm,~.nts ................. - ---- ------------------- ----------- ............

D

Ati may............... ....................

Agent ............... .....................

Rememl of enrollment cards, total.. ... __. __-------

Attorney................... -----------_-----------

Alan ........... _ .......... __1 --------- ---------

Disciplinary actions, total. ....... _........ ----_-------

Resignation Attorneysaccepted:

__----------------_

Age

on _: ---------------------------------------- Suspensions. Attorney.. __.............._------- ........

Reprimands: Agent---------- ........ ------------ -------

A

'for---

Agents ---------------------------------------

Case, end,, investigation - ---------------------------------------- as of June 30, total _ ........

Applicant attorneys. --------------- __------------

Apo i-nt agents _ .............. __. ____

Eeroll,. attorney,------_-_------- ___ ---------

Enrolled agent .................... ..........

Cons under review as of June 30, ........

Applicant attorney ----------- ----------- _ ..........

Applicant E. agent --------_--------------- ...........

hollem attorneys-. ___ ........................

Enrolled agent.............. .......... -------- _---

1963 1962

6.782

-1734 3.048

5, G03

12,582 '021

5

4

10,948 22,938

13,274 56

5.587

5.361

19 28

2 4

I

11 6

159 171

21

23

'273

- 57

114

237 82

275

7

17,6

-27

.55

'

Includes 2 516 CPA, 75 former IRS employ.,, and 457 Speelal Enrollment

E.-nalme Zindid.t- '

I

Includes 1,971 CPAs' 141 former IRS tenloyams, and 470 Special Enrollment

Ea.mination candidate&

3 For 1962, there is no breakdown behnum attorneys and agents.

Special Enrollment Examination Program.-The annual cost to the TreasuFy Department of enrolling

persons to practice before the Internal Revenue

Service by means of the Special Enrollment Examination in recent years has been more than double

the receipts obtained from examination candidates.

By statutory enactment, Congress has decreed

that programs of this nature shall be self-sustaining,

insofar as possible, and that the fees charged shall

be fair and equitable in relation to the costs

involved and interests served.

After careful analysis, it was determined that an

examination fee of $25 is an equitable charge to

candidates who take the Special Enrollment

58

Examination, authorized by Section 10.3(c) of

Circular 230. Public announcement of this determination was made on April 17, 1963, and the $25

fee is applicable to candidates who take the

examination to be held in September 1963.

This year, 457 persons were enrolled as a result

of the Special Enrollment Examination, compared

to 470 in 1962.

Renewal of Enrollment Cards.-The year showed a

normal decrease in the total of renewed enrollment

cards from 1962, which was the second peak year

of the cycle established 10 years earlier for periodic

renewal of enrollment cards at 5-year intervals.

Of those who enrolled or who renewed their cards

in 1958, there were approximately 3,200 who did

not renew in 1963.

Approved Enrollment Applications.-Original applications for enrollment approved this year total

6,782, and exceed last year's total by more than

1,000, as shown in the table. At the end of

the year approximately 73,500 persons were en.

rolled to practice before the Service, an increase

of approximately 3,500 over the previous year's

total.

Derogatory Information Cases.-After complete processing and closing of 223 derogatory information

cases, the Office had pending 237 cases at the end

of the year, or approximately three times the number of cases pending at the end of the preceding

year. This increase is, again, an indication of

continuing awareness of what is expected of the

tax practitioner, and of the vigilance being exerted

to properly regulate practice, especially with

respect to the ethical behavior of practitioners.

Representation by Former Employees.-Enactment of

Public Law 87-849, the so-called Conflicts of

Interest Statute, effective January 21, 1963, and

coded Title 18, U.S.C., 201-218, has made necessary certain changes in Treasury Department

Circular 230, as it relates to practice before the

Internal Revenue Service in particular matters

by former officers and employees of the Service.

Pending issuance of amended regulations and

pursuant to the provisions of the new law, a procedure was devised whereby a "declaration" is

required to be filed by the former officer or employee, indicating (1) whether he ever participated

personally and substantially in the matter at

hand; and (2) whether the case was under his

personal consideration within one year prior to the

termination of his Service employment. After

investigation of the declaration, the former employee is no longer given or refused a "consent"

to appear in the matter, but instead is advised

whether or not any information in the Service

indicates that his representation of the taxpayer

might be violative of the new statute.

This temporary procedure has been of considerable value in maintaining a normal work-flow

in this particular type of case, without detriment

to the practitioner in the form of undue time-lags

while steps required to revise Form 901 and to

arnend Circular 230 are in process.

Unenrolled Preparers.-Unenrolled preparers of

tax returns-those preparers who, under limited

circumstances, may represent their clients before

revenue agents and office auditors without enrollment-have evidenced an increased awareness of

the ethical conduct required of them. Persons exercising this limited privilege of practice are required to maintain the same level of compliance

to ethical standards as that required of enrolled

practitioners.

Authority to deny the privilege of limited practice to such individuals not so deporting themselves

is vested in the various district directors, with the

right of appeal to the Director of Practice. Adherence to a system of cooperative exchange of information between the district offices and the Office

of Director of Practice has served to curb abuses in

this area, and to increase compliance with, and

regulate activity under, the rules governi.

ng activities of unenrolled preparers of tax returns.

ADVISORY GROUP

In keeping with the practice of periodically

changing the membership, the Commissioner

appointed a new ~dvisory Group in November

1962. -The Group-whose purpose is to provide

constructive criticism of Service policies, pro.

cedures, and programs and suggest ways in which

the Service can improve its operations-met 3

times during the year: December 19-20, 1962,

March 14-16, 1963, and June 6-8, 1963. The

members of this Group are as follows:

Walter Blum

Univeraity of Chicago

Chicago, 111.

Marvin K. Collie

Vinson, Elkins, Weems &

Searls

Houston, Tex.

Louis Eisenatein

Arnold, Fortas & Porter

Washington, D.C.

Richard B. Good,.

The Brookings Institution

Washington, D.C.

Eugene J. Patton

Peat, Marwick, Mitchell

Company

New York, N.Y,

Mark E. Richardson

Lybrand, Ross Bros. and

Montgomery

New York, N.Y.

Wilbur J. Schraner

Van Nuys, Calif.

Louis Schreiber

E.I. do Pont de Nemours &

Go.

Wilmington, Del.

W. Croftjennings

Roberts,jennings, Thomas

and Lumpkin

Columbia, S.C.

Hover T. Lena

Dawson, Nagel, Sherman,

& Howard

D-cr, Col..

S1hcenprheL

rd.,ShZ~ur;rh,a

&

Merrill

Hartford, Conn.

James F. Thornburg

Oam, Thornburg, McGill

& Dc.h1

South Bcnd, Ind.

59
Taxpayer Publications

Tax FormsNew and Revised

Regulations

Executive Orders

Revenue Rulings

and Procedures

Announcements of

General Interest

Technical Information

Releases

Supreme Court Decisions

Actions of Lower Courts

Statistics of

Income Releases

61

I
I

A P P E N D I X

TAXPAYER PUBLICATIONS

Your Federal Income Tax, IRS Publication No. 17,

is written for individual taxpayers. A new style of

type, which allows more letters per line but does not

detract from readability, was adopted for the 1963

edition in order to include latest changes in law,

regulations, etc. without increasing the size of the

booklet. In addition to covering in detail the runof-the-mill problems of the average taxpayer, the

1963 edition furnished simplified explanations of

the more complex problems which the average

taxpayer may encounter and brief explanations of

some new provisions of the laws. A filled-in sample

of the individual return appears in the front of the

book. All parts of the return are keyed to page

numbers in the booklet where detailed explanations

and examples can be found. The 1963 edition

contains 14-4 pages and sold for 40 cents a copy by

the Government Printing Office and local Interna

Revenue offices. This book ranks among the best

sellers of Government publications. Approximately 865,000 copies were sold this year, representing an increase of about 165,000 c opies over last

year. In addition, 90,000 copies were used in the

Teaching Taxes Program, the Taxpayer Assistance

Program, and in various training programs.

Tax Guide for Small Business, IRS Publication No.

334, is written especially for sole proprictorships,

partnerships, and corporations. This booklet, like

Your Federal Income Tax, is dn important segment

of the Commissioner's program for more effective

taxpayer assistance and education. Income, excise,

and employment taxes are explained and numerous

examples are used to illustrate the application of

the laws. A check list, of particular interest to

new businessmen, shows, at a glance, the taxes for

which different kinds of business organizations and

business activities may be liable and what the business should do about them. A tax calendar for

1963 is also provided to assist businessmen in

keeping track of when various actions should be

taken during the year with respect to all their

Federal taxes. As in the case of Your Federal

Income Tax, a new style of type which allows more

letters per line but does not detract from readability

was adopted for the 1963 edition in order to include

the latest changes in law, regulations, etc., without

increasing the size of the booklct. Brief explanations of new laws taking effect during the current

year, were included in this edition, so that the

businessmen could make necessary preparations for

filing their 1963 returns. The booklet contains 144

pagesand issold for40centsa copy bythcGovernment

Printing Office and local Internal Revenue offices.

This year over 275,WO copies were sold and 40,WO

copies were used by the Service.

Farmer's Tax Guide, IRS Publication No. 225,

explains the tax problems of farmers. This booklet

features a tax calendar devised especially for

farmers, to help them keep track of their tax obligations throughout the year. The booklet discusses

income, employment, and self-employment taxes

and contains numerous examples illustrating the

rules. It contains 64 pages, and 1,250,000 copies

were distributed through Internal Revenue offices

and- agricultural "tension agents of the Department

of Agriculture.

Tax Guide for U.S. Citizens Abroad, IRS Publicition No. 54, a 31 -page pamphlet written especially

for U.S. citizens residing or working abroad,

explains their obligations under the Internal

Revenue laws. It tells the conditions under which

income earned abroad may be exempt from taxation, the requirements for filing Federal income tax

returns, and methods of determining whether

earned income is wholly or partially exempt from

tax. U.S. consulates, embassies, and Office of

International Operations distributed approximately 76,000 copies.

U.S. Tax Guide for Aliens, IRS Publication No.

433 (also known as Information Guide No. 9) is a

213-page pamphlet which explains the U.S. tax

provisions applicable to both resident and nonresident aliens. It contains a general discussion

of the provisions of the U.S. tax treaties and the

basis for determining whether or not an alien is

engaged in trade or business in the United States.

Approximately 32,000 copies were sent for free

distributionto U.S. embassies, consulates, and district

officcs.

62

ANNUAL REPORT . APPENDIX

Tax Return Filing Requirements for U.S. Citizens

Abroad, IRS Document 5357, a 6-page pamphlet

outlining briefly the requirements ~for filing tax

returns by U.S. citizens abroad, was published

for distribution to U.S. citizens through U.S.

consulates and embassies abroad.

Information Guides-International Operations

No. I-Fulbright Grants and U.S. Income Tax

No. 2-Income Tax Deductions of Members

of the Foreign Service Department

of State

No. 3-Dual-Status Tax Years of Alien Taxpayers (Formerly known as Change

of Status Year for Nonresident Alien

Taxpayers)

No. 4-Claims for Recovery of Manufacturer's

Excise Tax on Exported Articles

No. 5-Social Security Coverage for Clergymen and Religious Workers Abroad

No. 6-Preparation of Form 1040B

No. 7-Tax Advice for Foreign Scholars and

Visitors on Official Educational and

Cultural Exchange Programs (Formerly known as Foreign Scholars and

U.S. Income Tax)

No. 9-U.S. Tax Guide for Aliens (Described

above as IRS Publication No. 433)

Motor Fuel Tax Pamphlets explain the latest rules

in regard to the various Federal motor fuel taxes.

There are 3 such pamphlets:

Federal Use Tax on Highway Motor Vehicles, IRS

Publication No. 349

Federal Gasoline Tax Refund for Nonhighway and

Transit Use, IRS Publication No. 378

Farmer's Gasoline Tax Refund, IRS Publication

No. 308

Teaching Taxes, IRS Publications Nos. 19, 21, 22,

and 27, is a program to acquaint high school and

college students, and others with the basic principles

and rules underlying the Federal self-assessment

system of taxation. Over 2,250 thousand students

participated in the program last year.

,Pecedents, IRS Document No. 5446, is a new

4-page pamphlet which has been added to other

free taxpayer assistance material available to the

public. Published for the benefit of surviving

widows, widowers, and others charged with the

responsibility of handling the affairs of the deceased,

the pamphlet provides information needed for filing

the final return of the decedent. It explains when

and by whom the final return must be filed and

what income must be included. It also discusses

the taxability of income received by a survivor in

respect of a decedent, and explains how to deter.

mine the basis of inherited property..

Investment Income and Expenses, IRS Document No.

5448, is a new free pamphlet for the assistance of

taxpayers. This 24-page document brings together

all of the information needed by an individual

whose income is derived from stocks, bonds, or other

investment property. Included are discussions of

fully taxable, partially taxable, and tax exempt

interest; dividends and the dividends exclusion and

credit; gains and losses on sales of investment

property; the basis of the property; the special

treatment afforded investors in small business investment company stock; the tax treatment of

investment clubs; and the deductibility of expenses

incurred in connection with investment property.

Miscellaneous Taxpayer Assistance Documents

D--t No.

Personal Exemptions and Dependents ............ 5013

Employee Expenses, Educational Expenses ........ 5014

Sick Pay .......... - ..... ........ 5016

Selling Your Home ............................ 5017

Retirement Income and Cmdit. . ...... ......... 5018

Medical and Dental Expenses ....... ..... 5020

What Is Income ............................... 5045

Tax Calendar and Check List for 1963 ........... 5046

Self-Employment Tax .......................... 5047

Sales and Exchanges of Assets ................... 5048

Travel, Entertainment, and Gift Expenses, . ....... 5049

Depreciation, Investment Credit, Amortintion,

Depiction .... ...... .. ...... ... ........ 5050

Business Expenses ................. .......... 5051

Child Care ..... .. . ................ 5052

Contributions.. ... ..... ................... 5053

Retailers' Excise Tax .......................... 5054

Manufacturers' Excise Tax. . ................. 5055

Excise Tax on Communications ................. 5056

Occupational Stamp Taxes............. ...... 5057

Tax on Admissions and Dues.. .................. 5059

Rents and Royalties Income ................. 5060

Loss" from Operating a Business ................ 5062

Interest Deductions. . ............ 5074

'Faxes

..... .. ..

5075

Filing Your Tax Return ..... .................. 5107

Installment and Defcrr~d-Payment Sales .......... 5108

-mny; ........ ... .. ... .... - - 5109

Page 2' Deductions .......................... Silo

Estimated Tax and Tax Withholding. ... ......... 5111

Casualties, Storms, Floods, Hurricanes, Other

Disasters, and Thefts ...... ............... 5174

Accounting Periods and Methods ................ 5175

ad Debts .................................... 5176

Withholding From Wages by Employer .......... 5177

Repairs and Improvements ..................... 5178

63
ANNUAL REPORT * APPENDIX

ANNUAL REPORT e APPENDIX

I

Miscellaneous Taxpayer Assistance DocumentsContinued

D..-l Ne.

Partnerships ......................... ....... 5179

Corporations.. . .......... .. ... .. 5180

Sale of a Business ............ ... .. ... 5181

Community Property. . ...... . - - .. 5192

if Your Return Is Examined .................... 5202

Documentary Stamp Taxes ....... - ... - . 5286

Condemnations of Private Property for Public Use. . 5383

NEW AND REVISED TAX FORMS ISSUED

New forms with instructions:

F- N~. Tide

3435 Notice of Identifying Number

3468 Computation of Investment Credit

3491 Exemption Application

3520 United States Information Return (With Respect

to the Creation of or Transfers to Certain

Foreign Trusts)

Revised forms resulting from legislative, administrative, or regulation changes:

Fom No. Title

941 Employer's Quarterly Federal Tax Return

959 United States Information Return (With Respect

to the Organization or Reorganization of a

Foreign Corporation and Acquisition of its

Stock)

990A Return of Organization Exempt from Income

Tax (Section 501(c)(3) of the Internal Rev.

enue Code)

1041 A U.S. Information Return on Trust Accumulations

1087 Nornince's Information Return

1096 U.S. Annual Information Return (Summary

Report of Forms 1099, 1099L, and 1087

filed with this return)

1099 U.S. Information Return for Calendar Year 1963

SELECTED REGULATIONS PUBLISHED

Income Tax Regulations

Treasury Decision 6604 contains the amendment

to regulations issued under section 213 of the Code,

which provides that a capital expenditure directly

relating to medical care is deductible as a medical

expense to the extent that the expenditure exceeds

the increase in the value of the related property.

Published July 24, 1962.

Treasury Decision 6" contains the regulations,

issued under Public Law 87-397, which provide

for the requesting and furnishing of identifying

numbers, and the inclusion of identifying numbers

in returns, statements, and other documents made

with respect to most taxes. Published August 25,

1962.

Treasury Decision 6621 contains the regulations,

issued under sections 318 and 6038, which require

64

all U.S. persons in control of a foreign corporation

or a chain of foreign corporations to submit an

annual information return for each controlled

foreign corporation, the annual accounting period

of which begins after December 31, 1962. Pub.

lished December 1, 1962.

Treasury Decision 6623 contains the regulations,

issued under section 6046, which require an information return on Form 959 from each U.S. citizen or resident who on or after January 1, 1963,

is an officer or director of a foreign corporation, if

5 percent or more in value of the stock of such

foreign corporation is owned by a U.S. person, and

from a U.S. person who on or after January 1,

1963, owns or acquires 5 percent or more in value

of the stock of a foreign corporation, for each

additional 5 percent interest acquired. Published

December 1, 1962.

Treasury Decision 6628 contains amendments to

the regulations, issued under sections 6041, 6042,

60+4, 6049, 6652, and 6678, as amended or added

by section 19 of the Revenue Act of 1962. These

amendments provide for the filing of information

returns with the Service with respect to payments

of interest, dividends, and patronage dividends,

and to the furnishing of statements concerning such

payments to recipients. Published December 28,

1962.

Treasury Decision 6630 contains the regulations,

issued under section 274(d) of the Code, as added

by the Revenue Act of 1962, which provide that

travel, entertainment, and gift expenses must be

substantiated by adequate records or by sufficient

evidence corroborating the taxpayer's own statement in order for such expenses to be allowed as a

deduction under section 162 or 212; and which

provide specific rules for substantiating such

expenses. Published December 29, 1962.

Treasury Decision 6631 contains the amendment

to the regulations, issued under section 37, as

amended by sections I and 2 of Public Law 87-876,

which provides for an increase in the maximum

amount of retirement income with respect to which

the retirement income credit is allowable from

$1,200 to $1,524. Published January 15, 1963.

Treasury Decision 6643 contains the regulations,

issued under sections 1381 through 1388 of the

Code, as added by the Revenue Act of 1962, which

provide rules with respect to the tax treatment

of cooperatives and their shareholders. Published

April 2, 1963.

Treasury Decision 6645 contains the amendments

to the regulations, issued under sections 6033 and

6104, which require the submission of additicnal

information by certain exempt organizations and

provide for fuller and more convenient disclosure

of information to the public. Published April 2,

1963.

Treasury Decision 6659 contains the regulations,

issued under section 274 of the Code (other than

subsection (d)), as added by the Revenue Act of

1962, which provide substantive rules for determining whether travel, entertainment, and gift

-expenses which meet the requirements of section

162 or 212 will or will not be disallowed as-deductions. Published June 25, 1963.

Temporary Regulations

Treasury Decision 6619 contains the temporary

regulations, issued under section 46 of the Code,

as added by the Revenue Act of 1962, which

provide rules as to the apportionment of the $25,000

investment credit limitation among members of an

affiliated group; and rules pertaining to the election

of a lessor of new "section 38 property" to treat the

lessee as the purchaser. Published November 20,

1962.

Employment Tax Regulations

Treasury Decision 6654 amends the regulations

relating to the withholding of income tax from

wages, to conform to the Foreign Service Act

Amendments of 1960, the Mutual Educational

and Cultural Exchange Act of 1961, the Peace

Corps Act, and the Self-Employed Individuals

Retirement Act of 1962. Published May 28, 1963.

Treasury Decision 6658 amends the regulations

relating to the Federal Unemployment Tax Act to

conform to legislation enacted during and before

the fiscal year. Of particular importance were

the provisions of the Social Security Amendments

of 1960 under which a taxpayer's credit against

the Federal unemployment tax may be reduced if

advances made to a State under title XII of the

Social Security Act are not repaid by the State

within a specified time. Published June 27, 1963.

Excise Tax Regulations

Treasury Decision 6672 contains the regulations,

issued under section 4021 of the Code, and relates

707-151 0-43----6

to the application of the retailers' excise tax on the

sale of toilet preparations. Published October 11,

1962.

Treasury Decision 6618 contains the regulations,

issued under sections 4261 through 4264 of the

Code, as amended by the Tax Rate Extension Act

of 1962 (Public Law 87-508). These regulations

relate to the application of the tax on the trans.

portation of persons by air which transportation

begins after November 15, 1962. These regulations also contain rules relating to the exemption

from tax on the U.S. portion of air transportation

which is part of uninterrupted international air

transportation. Published. November 14, 1962.

Treasury Decision 6635 contains the regulations,

issued under section 4216(f) of the Code, as added

by section I of Public Law 86-781. These rcgulations relate to the exclusion of charges for local

advertising for purposes of determining the price on

which the manufacturers' excise tax is to be computed. Published

, February 7, 1963.

Treasury Decision 6650 contains the regulations,

issued under section 6416 of the Code, providing

rules of special application relating to credits and

refunds of the retailers' and manufacturers' excise

taxes. Published May 2, 1963.

Alcohol and Tobacco Regulations

Treasury Decision 6606 amended regulations in 26

CFR Parts 179, 194, 196, 197, 201, and 245 to

authorize the requirement of employer identification numbers in connection with special tax retums.

Treasury Decisions 6607 and 6608 amended regula.

tions in 26 CFR Parts 201, 240, 245, 270, and 285

to require identification numbers on commodity

tax retums.

Treasury Decision 6634 amended regulations in 26

CFR Part 212 to provide for the use of altemate

denaturants in completely denatured alcohol and

in specially denatured alcohol Formula No. 40,

and to authorize the use of certain specially denatured alcohol formulas in the manufacture of

synthetic resins.

Treasury Decision 6644 amended regulations in 26

CFR Part 251 to eliminate specific sizes for barrels

and kegs of imported beer, and to make it clear

that the tax must be computed on the quantity

actually imported.

65
I

ANNUAL REPORT e APPENDIX

EXECUTIVE ORDERS

Date

Number Subject mailer published

E.O. 41055 Relating to inspection of returns 10/11/62

by the House Select Committee

on Small Business.

E.O. 11065 Impection ofreturns by the Senate 11127/62

Committee on Foreign Relations.

E-0. 11071 Designating certain foreign coun- 12/29/62

tries as economically less developed.

E.O. 11080 inspection of returns by Senate 1/31/63

Committee on Foreign Relatiorts.

E.O. 11082 Inspection of returns by Senate 2/6/63

Committee on Government Opcratiom.

E.O. 11083 Inspection of returns by House 2/8/63

Committee on Government Opcrations.

E.O. 11099 Inspection of returns by Home 3/19/63

Committee on Public Works.

E.O. 11 102 Inspection of returns by tax offi- 4/6/63

cials of possestions of U.S.

E.O. 11109 Inspection of returns by House 5/30/63

Committee on Un-American

Activities.

SIGNIFICANT REVENUE RULINGS AND

PROCEDURES

The Service has on dined the deductibility, under

section 162 of the Code, of "payola" payments

made to disc jockeys of radio or television musical

programs (Rev. Rul. 62-133, C.B. 1962-2, 45).

One free meal per day furnished an employee by

his employer represents an appreciable part of

the employee's remuneration, the value of which

is "wages" for Federal employment tax purposes

(Rev. Rul. 62-150, C.B. 1962-2, 213).

The Service has discussed the deductibility, as

business expenses under section 162 of the Code,

of expenditures for advertising designed to encourage employees or the general public to register

and vote or to contribute to campaign funds of a

political candidate or party, or for sponsoring a

public debate by candidates for an office, etc.

(Rev. Rul. 62-156, C.B. 1962-2, 47).

For purposes of the manufacturers' excise tax

on automobile "parts or accessories," the restoration of unserviceable automobile bumpers is a

"rebuilding" (manufacturing) operation (Rev.

Rul. 62-162, C.B. 1962-2, 241).

Based upon the current situation in the industry,

a new administrative test has been established for

presumptively determining the applicability of the

manufacturers' excise tax to gas water heaters

(Rev. Rul. 62-168, C.B'1962-2, 242).

The Service has set forth guidelines and some

examples for computing deductions which an

employee may claim for expenses attributable to

the portion of his personal residence which he is

required to use in the performance of his services

as an employee (Rev. Rul. 62-180, C.B. 1962-2,

5,)).

The documentary stamp tax on conveyances of

realty sold applies to the transfer of real property

by a company to the trustee of its pension plan for

the purpose of funding the past service costs under

the plan (Rev. Rul. 62-186, C.B. 1962-2, 279).

Kickback payments made in violation of a

Federal or State law or regulation are not deductible by the payer (Rev. Rul. 62-194, C.B.

1962-2, 57).

The Service has discussed the tax treatment of

losses arising from the confiscation by the Government of Cuba of properties in Cuba owned 6y

United States citizens or corporations (Rev. Rul.

62-197, C.B. 1962-2, 66).

An

"

exclusive club or organization" may be a

"social, athletic, or sporting club or organization"

for purposes of the tax on club dues even though it

is privately owned and operated for profit (Rev.

Rul. 63-3, I.R.B. 1963-1, 15).

Guidelines have been furnished for determining

whether reimbursement arrangements and per

them or mileage allowance practices of employers

satisfy the substantiation requirements of the

income tax regulations (Rev. Rul. 63-13, I.R.B.

1963-4, 20).

The Service has set forth criteria for determining

whether obligations by a corporation, formed

under the general nonprofit corporation laws of a

State to stimulate industrial development in a

political subdivision thereof, are issued "on behalf

of" that subdivision (Rev. Rul. 63-20, I.R.B.

1963-5,7).

The Service has explained the rules for the

special tax treatment of losses suffered by property

owners as the result of major disasters and has

identified the 1962 disasters which give rise to such

treatment (Rev. Rul. 63-21, I.R.B. 1963-8, 12).

In order to provide guidance in the uniform

application of the manufacturers' excise tax on

automobile "Parts or accessories," the Service has

set forth taxable and nontaxable lists containing

66

ANNUAL REPORT * APPENDIX

brief descriptions of numerous articles not specifically covered by previously published rulings

(Rev. Rul. 63-23, I.R.B. 1963-9, 7).

A merger may qualify as a reorganization under

section 368(a)(1)(C) of the Code even though the

business conducted by the acquiring corporation

after the merger is not the same as it had conducted

prior thereto (Rev. Rul. 63-29, I.R.B. 1963-10, 9).

A list of countries which have been found by

the Secretary of Commerce to allow or not allow

substantially reciprocal privileges in respect of

aircraft registered in the United States, for purposes

of exemption from the manufacturers' excise taxes

and certain retailers' excise taxes, has been updated

(Rev. Rul. 63-62, I.R.B. 1963-14, 14)

' Interview expense allowances paid to an individual by a prospective employer are not subject to

the withholding of income tax and, to the extent

that they cover actual expenses, are not includible

in gross income (Rev. Rul. 63-77, I.R.B. 1963-19,

18).

The maximum limitation for medical expenses

provided by section 213(g) of the Code is available

to a taxpayer age 65 or over and disabled, even

though be has never been engaged in any substantial gainful activity (Rev. Rul. 63-101, I.R.B.

1963-22,11).

The Service published new depreciation guidelines, rules, and illustrative questions and answers

(Rev. Proc. 62-21, C.B. 1962-2, 418).

The Service revised its procedures relating to the

issuance of rulings and determination letters,

furnishing technical advice to district directors,

processing requests for exemption under sections

501 and 521 of the Code, and processing requests

for the qualification of pension, annuity, profitsharing, and stock bonus plans under section 401 (a)

of the Code and the exemption of related trusts

under section 501(a) of the Code (Rev. Procs.

62-28, 62-29, 62-30, and 62-31, C.B. 1962-2,

496, 507, 512, and 517).

SIGNIFICANT ANNOUNCEMENTS OF

GENERAL INTEREST

A self-cover pamphlet, IRS Publication No. 456,

which contains the new guidelines and rules for

depreciation, has been prepared and made available for purchase from the Superintendent of

Documents, Washington, D.C., 20402 (Announcement 62-69, I.R.B. 1962-30, 51).

Three complete tables have been prepared for

use in the application ofRevenue Procedure 62-21,

relating to the new depreciation guidelines and

rules (Announcement 6242, I.R.B. 1962-38, 12).

Additional questions and answers were issued to

serve as an aid in applying the new depreciation

guidelines and rules outlined in Revenue Procedure 62-21 (Announcement 62-84, I.R.B. 1962-

40, 33).

1962 income tax returns reflect recent tax law

revisions-also many improvements both in the

forms and their instructions (Announcement 62-

103, I.R.B. 1962-48, 74).

Good record-keeping practices will be vital to the

allowance of business travel, entertainment, and

91 t expenses (Announcement 63-8, I.R.B. 1963-4,

35).

"Your Federal Income Tax," "Tax Guide for

Small Business," and the "Farmer's Tax Guide"

have been prepared for 1963 (Announcement 63-

15, I.R.B. 1963-5, 46).

The index to administrative and procedural

matters, other than those related to the alcohol,

tobacco, and firearms taxes and those prescribed

by regulations, which have been published in the

Internal Revenue Bulletin since 1952, has been

brought up to date (Announcement 63-21, I.R.B.

1963-71 5).

The Service has listed all taxpayer information

pamphlets and other publications on specific tax

subjects which are available from local offices of

the Service (Announcement 63-25, I.R.B. 1963-8,

22).

The Service announced the availability of Docu.

ment No. 5049, containing an explanation of the

rules regarding the substantiation requirements of

travel, entertainment, and gift expenses claimed as

deductions on income tax returns (Announcement

63-37, I.R.B. 1963-13, 25).

A brief summary of the various records required

to be retained for Federal tax purposes has been

published in the Federal Register as the current

Guide to Record Retention Requirements (Announcement 63-43, I.R.B. 1963-15, 21).

A new series of supplements to the Cumulative

List of Exempt Organizations has been established

for bimonthly cumulative publication in pamphlet

form (Announcement 63-60, I.R.B. 1963-23, 32).

67
I

i

ANNUAL REPORT * APPENDIX

SIGNIFICANT TECHNICAL INFORMATION

RELEASES

A new form has been prepared for the use of

business and financial institutions in requesting tax

identifying numbers from depositors and investors

(T.I.R. 401, 9-26-62).

There will be a reduction in the amount of

credit against the Federal unemployment tax to

be allowed to employers of 4 or more with respect

to 1962 wages for services performed in Alaska

and Michigan (T.I.R. 421, 11-29-62).

The Service will apply existing provisions of the

regulations in its consideration of the qualification

of deferred compensation plans under new provisions of section 401 (a) (7) and (8) of the Code

(T.I.R. 425, 12-18-62).

Amendments to the regulations have been

proposed to require additional information from

certain exempt organizations and to provide for

a fuller and more convenient disclosure of information to the public (T.I.R. 435, 12-30-62).

Commercial fishermen are now treated the same

as farmers with respect to the filing of estimated

income tax returns and the payment of estimated

tax for taxable years beginning after 1962 (T.I.R.

440, 1-4-63).

Proposed regulations under section 964(c) of the

Code would impose certain record-keeping requiremenLs on U.S. shareholders with respect to

each controlled foreign corporation; requirements

explained (T.I.R. 461, 3-23-63).

For years after April 10, 1963, Maryland redeemable ground rents will be treated as mortgages

for purposes of acquisition, holding, and transfer

of property subject thereto; for 1962 and sub.

sequent years, rental payments under such a

redeemable ground rent are deductible as interest

(T.I.R. 465, 4-10-63).

Rulings and determination letters will not be

issued with respect to the tax status of professional

service organizations pending the issuance of

amendments now being drafted to the applicable

regulations (T.I.R. 471, 5-8-63).

SUPREME COURT DECISIONS

Civil Cases

In Braunstein v. Commissioner, decided on June 10,

1963, 374 U.S. 65, the Supreme Court rejected an

argument by the taxpayers that section 117(m) of

the 1939 Code did not require that gain from the

sale of stock of a collapsible corporation be treated

as ordinary income where, if the shareholders had

not operated in corporate form, gain on the sale of

the underlying assets (apartments) would have been

treated as capital gain. The Court acknowledged

that the purpose of section 117 (in) was to close a

loophole that had been used to convert ordinary

income to capital gain, but said the plain meaning

of the statute covered the transaction precisely.

Neither the language of the statute nor its legislative

history supported the additional requirement which

taxpayer sought to impose on the Courts of determining in each case whether the corporate form

had been used for tax avoidance purposes.

On January 7, 1963, the Court, in United

States v. Buffalo Savings Bank, 371 U.S. 228, reversed

the decision of the New York Court of Appeals

and remanded the case for further proceedings.

The Court of Appeals had held that local property

taxes were "expenses of sale" in a foreclosure

action brought by the mortgagee, and consequently the local tax liens, which accrued later

than the federal tax liens, were accorded priority

in the distribution of proceeds of the foreclosure

sale. TheSupreme Court rejected this contention,

and held that the case was governed by the doctrine

enunciated in United States v. New Britain, (1954)

347 U.S. 81, that "first in time is first in right."

Since federal tax liens were pri.

or in time to the

local tax liens, the federal taxes were entitled to

payment ahead of the local property taxes. The

Court also indicated.that the State may not avoid

the priority of the federal tax lien by the formalistic

device of characterizing subsequently accruing

local tax liens as expenses of sale.

In Riddell v. Monolith Portland Cement Company,

decided~January 14, 1963, 371 U.S. 537, the Court

overruled a number of lower court opinions holding

that manufacturers of cement using their own raw

materials could, for years prior to 1961, compute

percentage depletion on gross income from the

sale of cement. By upholding the Government's

contention that a uniform test of the first commerCially marketable product must be applied to

determine the cutoff point in the treatment process

of each general mineral classification, the Court's

decision assured that manufacturers with captive

sources of minerals would not get larger depletion

deductions than would be allowable in the case of

extraction and sale of the crude minerals. This

68

ANNUAL REPORT 9 APPENDIX

case is proving dispositive of similar outstanding

controversies involving salt, brick and tile clay,

dimension stone, and minerals used in the manufacture of light weight aggregates. It appears to

have checked a trend in some jurisdictions toward

the judicial erosion of the principles enunciated in

United States v. Cannelton Sewer Pipe Company (1 960)

364 U.S. 76.

On February 18, 1963, the Supreme Court issued similar opinions in 2 tax cases, and considered

a third.

In United. States v. Gilmore, 372 U.S. 39, the Court

held that legal expenses incurred by a taxpayer in

defense of a divorce action were not deductible as

expenses incurred for the conservation of incomeproducing property. The taxpayer's primary concern was the protection of his controlling interest

in 3 corporations from which an all but negligible

amount of his income was derived in the form of

corporate salary and dividends. The Court thus

set forth the test for deductibility of legal expenses

as the origin and character of the claim in connection with which the expense was incurred, rather

than the potential consequences should the claim

not be successfully resisted. The Court also found

that the legal expenses at issue were not connected

with the taxpayer's profit-seeking activities even

though the wife's claims might have been paid out

of income-producing properties.

On the same date, in United States v. Patrick, 372

U.S. 53, the Court held that legal fees relating to

a property settlement incident to divorce were

nondeductible. The Court believed that the

principles of the Gilmore case governed. Such fees

were nondeductible since they arose from the

marital relationship, even though they were paid

for arranging transfers of stock, leasing property,

and creating a trust, rather than for litigation.

In Schlude v. Commissioner, 372 U.S. 128, the

Court again considered the problem of an accrual

basis taxpayer's attempt to defer reporting of

prepaid income. Under the taxpayer's method of

accounting, only "earned income" (computed on

the hours of dance instructions given to students)

and income from cancellation of contracts was

reported currently. Ile Commissioner determined

that the method of accounting used did not

clearly reflect income and he included all advance

payments received in cash and the full face amount

of notes and contracts executed by students, He

retreated somewhat from this position in the

Supreme Court and conceded that the contracts

should not be included at face value but only

the amounts that became due in the taxable years

or for which dance instructions had been furnished.

In a five to four opinion the Court sustained the

Commissioner's position, stating that the issue

was squarely controlled by American Automobile

Association v. United States (1961), 367 U.S. 687.

In Maximov v. United States, 373 U.S. 49, decided

on April 29, 1963, the Court held that a United

States trust, all of whose beneficiaries are British

subjects and residents, cannot be considered a

"resident of the United Kingdom" for purposes

of determining whether its retained capital gains

are exempt from United States income tax by

virtue of Article XIV of the Income Tax Convention between the two countries, which Convention

exempts capital gains of United Kingdom

residents. The decision overrules American Trust

Company v. Smyth (C.A. 9th 1957), 247 F. 2d 149,

and adopts the long-standing rule that a trust is a

separate taxable entity from its beneficiaries.

In Whipple v. Commissioner, 373 U.S. 193, decided

on May 13, 1963, the Court held that although

the taxpayer devoted his fulltime to the affairs of

several corporations, such activities did not constitute a trade or business. Accordingly, it was

held that bad debts resulting from loans by the

taxpayer to his controlled corporation were not

deductible as business bad debts. However, the

case was remanded to the Tax Court to determine

whether the bad debt was proximately related to

the taxpayer's real estate business.

On June 10, 1963, the Court decided the case of

United States v. Pioneer American Insurance Co., el al.,

374 U.S. 84, reversing The Supreme Court of

Arkansas and remanding the case for further

proceedings. The Arkansas Supreme Court had

held that the attorney's fee incurred by the mortgagee in foreclosing its mortgage was prior to the

federaltaxlien. The mortgage itself was conceded

to be prior to the federal tax lien. The Arkansas

court reasoned that under the Arkansas statute the

attorney's fee was enforceable as a contract of

indemnity and therefore the right to the attorney's

fee became choate prior to the date of the filing of

the first notice of tax lien since the default entitling

the mortgagee to enforce the indemnity contract

occurred prior to that date. The U.S. Supreme

Court rejected this argument and held that, since

the amount of the claim for the attorney's fee was

69
ANNUAL REPORT e APPENDIX

undetermined and indefinite when the notices of

tax lien were filed, the claim for the attorney's fee

Lsinchoateat the date of the filing of these notices.

The Court once again applied the federal rule for

determining the specificity of a lien competing with

the federal tax lien and stated that, although the

lienholder and the property subject to the lien were

definite, the amount of the lien was not since such

amount must be established by court decree in the

foreclosure proceedings. That being the case, the

attorney's lien was inchoate and inferior to the tax

liens.

Criminal Cases

In the case of Sholivell Manufacturing Company v.

United Slates, 371 U.S. 341, decided January .14,

1963, the Supreme Court held, with respect to

an alleged voluntary disclosure made prior to the

revocation of the Treasury's voluntary policy,

that the taxpayer defendants were not entitled

to any benefit from their alleged disclosure because they had not acted in good faith. The

income tax evasion convictions for all defendants

were upheld. In December 1962, 368 U.S. 946,

the Court had granted certiorari to review the

findings of the lower court that the original conviction of the defendants for failure to report

black market receipts was not vitiated by their

alleged voluntary disclosure.

In Nomet v. United States, 373 U.S. 179, decided

May 13, 1963, the petitioner and his co-defendants

had been charged with violating the federal wagering tax law. Co-clefendants after pleading guilty

were called as government witnesses to testify

concerning their relationship with the petitioner,

although the prosecutor had advance notice they

would claim their constitutional privilege against

self-incrimination. The trial.court sustained their

privilege as to certain questions asked them. The

Supreme Court held that there had been no reversible error under the circumstances involved,

including the fact that the prosecutor had a bona

fide belief that because of the pleas of guilty the

witnesses could not assert privilege,

On May 27, 1963, the Court, in Lopez v. United

States, 373 U.S. 427, affirmed the conviction of

the defendant for attempted bribery of a revenue

agent by holding that evidence of conversations

recorded by an electronic device concealed on

the person of a Government agent was properly

admissible and that the revenue agent's apparent

fcigned willingness to accept the bribe did not

constitute entrapment as a matter of law.

In the alcohol and tobacco tax field the Court

refused to review all 7 of the cases in which writs

of certiorari had been sought by convicted

defendants.

In3 cases the refusal of thelower court to suppress

evidence resulting from an allegedly illegal search

was urged as the grounds for review, Wiggs v. United

States (C.A. 5th), 371 U.S. 904 (also involving the

Government's refusal to disclose identity of informer); Denton v. United States (C.A. 6th), 371

U.S. 923 (question ofentrapment also raised); and

Lee v. United States (C.A. 9th), 372 U.S. 907.

In 2 cases the sufficiency of the Government's

evidence to support the conviction was challenged

(i.e., Ragland v. United States (C.A. 4th), 371 U.S.

949; Lemons et al. v. United States (C.A. 4th), 371

U.S. 968).

In Hall v. United States (C.A. 5th), 371 U.S. 952,

the admission into evidence of a tape recording of

a telephone conversation made with the consent of

one of the parties to the conversation was urged as

a basis for the Court's review. The District Court's

reliance on the statutory presumption that defendant's unexplained presence at the moonshine still

as sufficient evidence to support his conviction for

possessing an unregistered still (26 U.S.C. 5601(b)

(1)) was challenged in Ivey v. United States (C.A.

'4th), 372 U.S. 929.

No petitions for certiorari were filed by the

Government in alcohol and tobacco tax cases this

year.

Actions oF Lower Courts

In Metro M. Holovachka, the Court of Appeals

for the Seventh Circuit affirmed the defendant's

conviction for evading over $39,000 in income

taxes for the years 1955 to 1957, inclusive, based

on a net worth-expenditure determination. It

field that the jury was warranted in rejecting such

defense claims as cash on hand, funds given or

borrowed, and that money he disbursed for loans

and political purposes was not his. Holovachka

had been prosecuting attorney of Lake County,

Indiana, from January 1953 through December

1958, and had served as Gary city comptroller

during 1952.

The Court of Appeals for the Second Circuit, in

ANNUAL REPORT e APPENDIX

United Staler v. Woodner, affirmed the conviction of

Ian Woodner for evading income taxes for 2 years.

It held, in view of the indicia of fraud, that the

jury reasonably could reject Woodner's defense

argument that because of the size of his operations

and the large amounts of money necessarily involved he could not have had intent to evade his

taxes. The Court referred to the use of nominees

and currency, the lack of usual business records,

the commingling of funds, and the personal use of

funds as pointing to a scheme of evasion.

,7oseph Conforte, Wadsworth, Nevada, following a

mistrial due to a hungjury, and thereafter pleading

guilty to a charge of income tax evasion, was sentenced to a term of 3 years. Conforte has been

publicly referred to as a "former Nevada vice

lord."

In Gorin v. United States, 313 F. 2d 641, the Court

of Appeals for the First Circuit reversed the convictions of a former Service * employee and 2

practicing attorneys on conspiracy and bribery

charges and remanded the case for a new trial.

The case involved an attempt to bribe Service

employees to recommend against criminal prosecution of Nathaniel Bergman, an attorney, for

tax evasion. The Court held that an erroneous

charge on the issue of claimed entrapment had

been given at the trial. The appellants' petition

for certiorari on the ground that the evidence

established entrapment as a matter of law has

recently been denied by the Supreme Court.

Bergman, who had been convicted with the

employee and the 2 other defendants, dismissed

his appeal and subsequently pleaded guilty to

evading his taxes. As a result of these prosecutions

he received prison sentences.

George Chacharis and Harold Zweig, respectively

mayor and city engineer of Gary, Indiana, and

Willmar Chulock, an accountant, were indicted on

various charges of income tax evasion and conspiring to defraud the Service in the operation of its

functions, such charges stemming from construction payoffs. In December 1962, Chacharis interrupted his trial to plead guilty to conspiracy.

Chulock was later found guilty by a jury of the

same charge. Zweig pleaded nolo contendere to

evading his income tax for the year 1956. All

three were given prison sentences.

The authority of the Service to deny alcoholic

beverage permits to persons who had previously

associated with racketeers has recently received

decisive judicial support. In Seaway Beverages,

Inc. v. Dillon et al. (decided April 11, 1963, 319 F.

2d 722), the Court of Appeals for the District of

Columbia decided in the Government's favor an

issue under the Federal Alcohol Administration

Act which has not been heretofore judicially

resolved. The Court held that evidence as to the

former association of an applicant with a racketeer

(the notorious Tony Accardo) supplied a sufficient

basis for denying the permits sought.

In the alcohol and tobacco tax field, action at

the court of appeals level was generally favorable

to the Government, with the notable exceptions of:

(1) Russell v. United States, 306 F. 2d 402, in which

the Ninth Circuit Court upset the defendant's

conviction for failing to register a firearm on the

ground that the registration requirement of the

statute infringed on his constitutional right against

self-incrimination (see however Starks v. United

States, 316 F. 2d 45, and Frye v. United States, 315

F. 2d 491, in the same circuit, which narrowly

limit the scope of this decision to the particular

offense charged); (2) Williamson v. United States,

311 F. 2d 441, where the Fifth Circuit Court

reversed the defendant's conviction of possessing

liquor in unstamped containers and selling liquor

without. paying the special occupational tax on

the testimony of an informer who had been hired

by the Government on a contingent fee basis to

obtain evidence against him; and (3) Blumenfield

v. United States, 306 F. 2d 892, where the Eighth

Circuit Court reversed the defendant's conviction

of abetting in the making of a false retail liquor

tax return (Form 11) by reporting as "owners"

persons held by the Court to be nominal and partial

owners of the retail businesses.

In the search and seizure and forfeiture areas,

which are of particular importance in illicit

liquor enforcement, several decisions favorable

to the Government have been reached by the

courts of appeals. For example, where state

troopers discovered illicit liquor in the trunk of

the defendant's car after arresting her for reckless

driving, in checking her statement that the erratic

behavior of the car resulted from a trunkload of

furniture, the Sixth Circuit upheld the search as

reasonable in that it was incident to the valid

arrest (United States v. Stokely, (C.A. 6th) 311

F. 2d 593). Similarly, where the defendant's

car was wrecked, disclosing the moonshine, in.

defendant's attempt to elude pursuing state

70 71
ANNUAL REPORT

o APPENDIX

troopers, the same Court held that no search was

involved nor was there an arrest until afier the

liquor was exposed to public view (United States

v. Williams, 314 F. 2d 795).

As to forfeitures, the Fifth Circuit Court, ina

decision of great importance to the success of the

Service's program to curtail the flow of raw

materials to moonshiners, upheld the judicial

forfeiture of

a tractor and trailer on the evidence

that they had been used to deliver some 12 loads

of sugar (383,500 pounds) for approximately

$32,000 in cash sales, wherea fictitious consignee

had been reported to the Service after defendant

had been served witha demand letter. The Court,

however, ordered the return of the sugar contained

in the trailer at the time of seizure on the ground

that there was no evidence that it was iniended

for an illegal use (Utley Wholesale Co. v. United States

(1962), 308 F. 2d 157).

In the field of petitions for the remission of

forfeiture of seized vehicles, the Tenth Circuit

Court reversed the judicial granting of

a petition

filed bya bank on the ground that, when itfinanced

the purchase of the vehicle, the bank should have

made an inquiry as to the record and reputation

of the true owner. of the vehicle whose identity

it knew and who wasa reputed liquor law violator

even though title to the vehicle was taken bya

straw purchaser of good repute (United States v.

One 1958 Pontiac Sedan (1962), 308 F. 2d 893; see

also United States v. One 195.9 Pontiac. Bonneville 2-

Door Sedan (U.S.D.C. A62), 206 Fed. Supp. 892).

STATISTICS OF INCOME RELEASES

Sales of Capital Assets reported on Individual

income Tax Returns, 1959, Supplemental

Report (21 pp., 25 cents)

Individual Income Tax Returns, 1960, Preliminary (22 pp., 20 cents)

Individual Income Tax Returns, 1960 (165

pp., $0

Corporation Income Tax Returns with accounting periods endedJuly 1959-June 1960

(334 pp., $1.75)

Corporation Income Tax Returns with ac.

counting periods ended July 1960-June 196 1,

Preliminary (35 pp., 30 cents)

U.S. Business Tax Returns with accounting

periods ended July 1959-june 1960, Sole

Proprictorships, Partnerships, and Corpora.

tions (182 pp., $I)

U.S. Business Tax Returns with accounting

periods ended July 1960-June 1961, Sole

Proprietorships, -Partnerships, and Corporations, Preliminary (29 pp., 25 cents)

Statistics of Income publications are for sale by

the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402.

72

73

107-1.51

7
NOI'ES~ All) emlydato are on afisral-yearbasis, unless otherivise specified.

]-or example, dala headed " IWJT' pertain to the fiscal _),car ended Yune '30,

1963, and ';.7u~, I" inventiri, items under this heading reflect inventmies as of

July 1, IW)2.

In nian1v tables and charts, figures have been tounded and ma-V not add to the

totals which are based on unroundedfigures.

Internal revenue districts are listed in this section by the names of headquarters cities. P.ach district is identical with the boundaries of the State in

which the headquarters rit

'

y is located except.foi the, States recapitulated at the

bottom of tables 1, 5, 6, and 14. A map of the disn icts appears on page xiv.

STATISTICAL TABLES

COLLECTIONS, REFUNDS, AND RETURNS FILED

Tlble

1. Intel..) coll-ticm., by sources and by

internal revvinle regions, districts, States, and

Pog,

other areas . . . . . . . . . . . . .

. .

77

2. Internal revenue collections by sources

.

nd by

quarter' . . . . . . . . . . . . . . . . 85

3. Inte, nal re-nui, collections by sources . . . . 86

4. Intel '.Ilc~tiolcs by principal sources,

fiscal

y

cars 1940-1963 . . . . . . . . . . 88

5, Internal revenue refunds including interest . . 1) ()

6. Number of returns filed by internal revenue

regions, districts, States, and other areas . . 91

7. Internal revenue tax oil manufara-d products

fitrra Puerto Ri.. . . . . . . . . . . . . 92

ALCOHOL AND TOBACCO TAXES

8. Establishments qualified to cngag,- in the produr.

tion, distribution, storage, or use ofalcoliol and

alcoholic liquors . . . . . . . . . . . . . 92

9. 17~lablixlmicnts qualified to engage in the produeIt) near or c .1-wimi of orb-co products 92

per mits relating to distilled spirits under chapter

5 1, 1 R Clod , . . . . . . . . . . . . . . 92

11. permits for operations relating to alcoholic

bcvcragc~ under the Federal Alcohol Administration Act . . . . . . . . . . . . . . . 93

12. Permits relating to tobacco under chapter 52,

IR Cod .. . . . . . . . . . . . . . . . . 93

13. Label activity under Federal Alcohol Administration Act . . . . . . . . . . . . . . 93

STAMP TAXES

14. Numbcr of occupational tax stamps issued, by

class of tax and bv internal revenue regions,

districts, and Stan,; . . . . . . . 94

CASES RECEIVING APPELLATE CONSIDERATION

OR IN LITIGATION

Table P.g'

App,11.1, Dkio15. Receipts and di~pmiliolr of protewd income,

p'.fiu, estate, and gift tax cases prior to issu-

-ofstatutory notice (P-90-day cases) . . 98

16, Kcccil)t.% and di.'position of prote.,,ted incortic,

profits, estate, and gift tax ca,,rs in .1'kh swo.

tory notices were outstanding (90-day cases) . 98

17. HL-vipts and dispo.sition of income, profits,

estate, and gift tax cases petitioned to the Tax

Court (docketed cases) . . . . . . . . . . 99

OJT- of the Chief Coumel

18. Processing of income, profits, estate, and gift tax

cases ill tile Tax Court . . . . . . . . . . 99

11). Results obtained in income, profits, estate, and

gift tax cases disposed of in the Tax Ckmrt. . 99

2o. Rcr.cifn and disposal of'rax Court cases in courts

of appeals and in S.p,cme Court . . . . . Ion

21. Receipt and disposal of suits filed by taxpayets

in Fcdcrad courts and actions by th~- Uncted

States for recovery of erroncous i (-funds . . . 100

22. IX-cisions ofcourts ofappeads all(] Supreme Court

.

in civil tax cases . . . . . . . . . . . . . 101

23. l(eccipt and disposal of collection, injunction,

,inmenons, and disclosure cases . . . . . . . 101

24. I~eccipt and disposal of insolvency and darter

proc-lilrZt . . . . . . . . . . . . . . . 101

25. Receipt and disposal of miscellaneous court

cases, lien cases not in court, noncourt collection litigation cases, and appeal cascs . . . . 101

26. Caseload report . . . . . . . . . . . . . . 101

COST OF ADMINISTRATION

27. Obligations incurred by th, Internal R-ellu,

Service . . . . . . . . . . . . . . . . 102

28. Quantity and cost statistics for printing . . . . 103

74 75
ANNUAL REPORT IS STATISTICAL TABLES

11I I

Table I-4reternal revenue collections by sources and by internal revenue m9lons, districts, States, and other 'Mae

Ilethoutandsoldo(lars. See table 3, p. 86, for tax rates and further breakdown of national totals by wouressl

Individus I fince me and anni,11yerent tax=

Internal nwerrue regions, districts, States and other areas

I Total Internal In... tax

Corporation Income tax withheld ad Railroad Unemploy.

(Stann=:dby single district, indicated in parentheses; colle'ti- i.... te... Total. ofId~Up ithor retirementI Set

ther States shown at bottom Of cable) withheldI

, J:d,lV lateu

reel.

(1) (2) (3) (4) (5) (6) (7)

------

"o, US,M U, alsoM 67, 9112, U7 U, 204 On 53~ 9. UL U, 94, shat

AtwerewI

Atltwe-- ---------------------------------------- g-aI

7~ $as. Sell

1-

1113

M

4. 73-6 in all"

9:"'

36

an at-:::-,:::::::::::::::

Am 7*'&n

~Ala '.

b

-1'

:

I

28I.D93

691 490

25 ,022 957,051 198 13392

133 667 527 944 42

35

638, 4,676 3 40

215

15.234

Colonel,a

11 161:612 . ,90' 148 336 819 81 417

81,

2657 4,966

2481

0.315

4~

G,-.b.r ---------- a) 666.672 . . ,

443.572 869,684 216,061 . 08 5 7 ' 408

6.636

17 465 Mississippi) ---------------

(Fl id

307

3

76.260

36"1 '2"

1

17 :273402 .4,113 ( or a)---_-_---------------

Tle -)

1.5

73: 577

4

145:410 1,9 : 6 4 1 6

1

19

"

NUNIJ.......n- .. -------------------

- 963,329

1

1

7

95:18

176,102 715,

7

9

1 :

5070DO at

AulI---------------------------------------------

M

- 111

254

6 4.174,

M Us.*"

3

1" 7" SO '23

J, LU. 02 14 ITS

`a 274 "1

411S

16 Be, ton: 46: 3,0 7

77 619 780 51

:9"' "2: S2 ....:4

.

32:046 Sur.................._

1 0. 1 219 14,162 85.455

'

51 .5 1,160

n.

,a

th

1,907,154 352-2 66 1,243

6Z9 :S

31

.

9. 213 732 1, ,,

Portravlono _-_::

'h d)

:

221,425

429,090

9

1 : 54

2

379

41,852

':4'3'6 63.279

2

135,855

246,633 13

2:

5.25962 -1- ---------------

lh

aa.,_

R2

6 428

"

EN

7.

?U94: '"

N

NS~:

af

1

. Us.

grm ---- '"

" S"

07

27

5:202

4 67.

s 50

I, 12

I

2

:607.336 3,572,124 11

22

:

3, 535,17Z

, SO 6 331

._

68,570

Wisconsin):

9 462 Mil-kse........... b - l 822 494

..:

404,105 1,207.093 731

,

.121~ 1613

11 ,

Springfield ........... (S. (b) .l.

1 as :

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

255:311 206,575 10.852 221,670 472,911 715 1:555

Cincinnati ........... (Swe

below) ---------- 14- 1,113:11-4

31

"n" Say "Mass 2"9~ I

1

14I.3

71 "'

SO,

Cleveland ...... I i '!!w31185,600

9

nd an.) : :"~4 411,821:100,623 27,959 34,593 India K t k ':3'2' 6 3 11 314.1 ap2 S

1.155,587 17,261 Louis

....

~ eh uC Y). ---- ------

W ivi

---- ------

P ini.)

"s

4 . ~

1,746.

""M

,, ,D :

155.

3

11

47 64

2

344 13.0

:139 66

04

4

54

Vin 1,589. IN 234 : 7 21, 607

"1 121 64 2 66 6

581 19,428

2 13.

031 ... ------- ......

All,

.......

,,,

`

6alk233 259 Us LUS22'"?127 4'"" 199 Us 409 45 $6

2.70

140 21""U : 1 . r!.

A

t?n .a M.~M~b

E

in .

2,264,597 . , .338.9121 312.1,2 41

11 3117 187,544 8.126

2 2.

18,601

h

Dell................ (Sao

h below)

- -------

Ak

1. 707,4

" : ~

, :

75

,3

315 . 2 'D

"

'" 7%,

1W 12, 004 1,, .,

1 Lit

_(r ansas)- Is Rock

New Ollaus.,

319.74S

927 640

7

2~

. .,,

5 5,

3 06"

,,

91

Ill

54'

It

3 91

----

Oklahoma).

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

Oklahoma City ---- .

961,416

235

14 .6 195.0

157,422

5

9744,086 - 165.2'093

38

&9492 773 3

400, 37 62

8~451

8,094

Sb ----------------

-wVask "I"

US- gas

.

set,

105 2~M

5,M. 12

2

suat

-U`'n"

l7e, us Albany---- I—— ---- I k1 Mow

)___

1,158,927 301,318 917,621 10-

4 OJO:7t490 11,344 r* 11 .......... 1 ffl , .

1B iiN,l*~

s

2.161,932

034

21731 1.706,388 514

3

1,164,249 4:847 23,259

..

(a) hal .w):

Manhattsur-:::::-:':

im

1, .. .... 5 1 1 2 313

326:

409 815.230 173,549

4. 879,484 7.5 435 1,221,055

5'

1. 121:7, 17

cu

1 02 IV,1312 445

SY1--....... ----- See(e)below)... ---------------

697:7

99

18 : 11

9

43 14, 45 48 00,592 381,460 25 ,

7.354 awe -low..,

Abmclaem 147 800

.""

1. UsI as

16 467 5094

"

121 2" I.'.. "

M'163

4.02~1 7 a"913 Us"'a2 34 Ch, an...... ...... _::: D n e *C-Y"-M.1d 1 .

97

'512 . ~

1

7,973 76 095 3D 72

.

~:IT'

evr----

6 806

--

1.

,,wej_ k6

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

1

27336

5

I

1

129.968 1,017,857 568: 0113

US

2 12

112 615,029

11: IS 0 01374 1,718

537

495

7 32

N 6i

ii

ron

- ::---------------

-'I".

12 1111

'18

104,594 44,843 58,697 23

1.

. 031

K.e as city StS(c)bSkw ------ 79

I Uli

1

S7 576 549,244 33.443 1

403,586 051

a.

164 01111 ----- bewi ... L..jj._ S:.

'"')

_::::::

St. (1) bal

" :

44

9.0

639 753

104:107 469.421

341.943 1.053.7908 2'14':2 71

24:025

37M92.777 I" 31 2ZO

5.509

15 524 St. all p ' ~Ml ----------- -

1.645:

0,2

343,399 1,146,0062 35,781 ,963,243 31,093 .15.889

Wichit. K' ------ -------------- 712,797 114.2DD 550.642

1

-0-....

_ 90,362 323, 628 26,104 5,547

111: 141: I

''

91

:

:1 ':t 02Ca'

U7

M AMW

below)-----------

....

C.red....- rS.Sjd ...

5S6

55

2 621,343

327 3951 ,872. 67 31 373,405

108,358 7589 132,837

I11. 417

37:

333,74(i 28

it 027

147

2

Newark. ------

d

N*

2. 738. 850 594.9095

0

2 111,857

1

711 1,1118.703 3,721

2 :770 So. .

Phlla delphis ......

( ~b

w 3,459.794

5a, 0542:371:

5

72 482,607 IWO29 54.946 34,090 li b " aor, 0

2,475

7 '53621 1,191

4- 281 051 1,3712

1

"

17 415

S

n-

Wil i D be

5,: 767 7,

: 907

,

US:4

,,

9 11

3 :562

14:7,0

N

,:2

60

m ngton. --------- ollars

aF ner... 'weian 983.458

U, 423, las

546 :432 403,2 125.307

1, W,W Is. are, 14380 2. W. US

2. 9592

7.318.113 4% as

5.112

Uk 06

Ancu .. .........)--------------------------

A

d:h

D

77. 74

69,

4.641

770

13.077 55.963

-----

---

But'. __ ------ n) .......... -------_ 198.672

4

27,745 153L995 2.359 109,054 246W 2.337 730

".1ana.. ------------ an

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

l

114,171

0, SO36

1

149

1112 94

11U

0

,494

H

LeeoA uluWas__ S:.

171.111 5

5. 96.709

21 ':.79 S2:.

:.,

3

868, 324 4.182,076 1,037 718

,, 14

0 158

3,089,619 731

2 531

54:007 Ph."is ---- ------ ---- _-------- 1

401,223

6

15

332

7

17 108 720 2219.405 124 4,027 Po

nixed ......

"a'`dl)...... ...... .... ......

I

64 04G

it, :

278 542: 984 46:606 386.7- 2,605 7,11

N

.

) . . ..

2

05:072 32.514 1566

0I'H" '

ot

' "t

1"

On

San Francisco,SD.t' ()jj _6j ~

301,967

4.

2

10,061

46.042 235 :8 14 50 14

571.624 3. 004.029 766,379

181:1 118

2 164 219 39 926

2:

33 16836S

... Seattle. -------- Washington) ------- 1,332,453 179.576 1,036.588 247.519 . .

774,937 654

,

IX47 we sef a P -

age.Us ",7" "s.rass

`1'

---

U7 IL442 uerto Rim----------

oth

..........

`

94.677 42 49,672~ 796

,,479

3 39 '

mill-nilso -----------------------------------------U iii: ....

231, &M 27,722 189,694 139.105 49,946 46

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

--

'03

140 ---- --- ~',44 11111 331

-

71,

T,-- ........ ......... -3.811 -- ------

_:t;

. i I 3 7_

. ....

~3. I_

---

Withheld taxes of

Federal

........ 73.661 .. .......... 73t661

"

7~I

Total$ for States not shown be,.

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

7,111 105 804,097 15,253,908 406 57

17 443

Illinois ------:

-

8: 245 5,254: 264 :083,791 4,008,093

35:?7

7:125

Missouri------ 2,431,

T

603,

042

347.719 1,296,363 35,2R1 23,

6

,t

j3: 1D. go

166,1is3

9.

39,

'93.26

.

12

810

262

3861

05

573,694

2.

112 240

1,652.449

9,019.476

3.750

78.142

32.

176.918 2411 Oki. - 6 1 71, .4

1-1`5

3 :

998

35

8

7

24:029 3,190,801 28.866

54.

Us

Parm.

.

6:5

90 ~7 'I..

..

7.

4,

551:10I U2.111 3.511. 913 76 .195 69-G

TUn ....... ---------------

her,

471

s se,,, as,,., ass,.,~"e,

77
Alcohol to,.

Internet Nners.. .gi.I,, districts, States. Ad other E.,int.a.,

suen - Entities Gifitt". otal (sum If .1. na cUI istilled Spirit. far.

(States .p,..Itd by single district, indicated In ,,.26.31,

I ....thegxa~ total. 1-1 other states shown at 35,43,48, I.F.,tgd

bottom of IS 1.) and 67) Total ,

fro acted by omestic I cNfi- call. -ocIp.. tural her I- Corto-)

(a) (9) (10) 11) 12) 13) 14) 5) 6) 17)

welostan-lowass.............

U

os, US ge, U; . 4". "? ,441,6H .W.M ,IJT WCM &W US M

Arkansas wexrxaxw~ ------------ ......

----

I", ". 7s, 2 -368 0 877 8 25 .-

4 437 ox; 1 281 o2:955 37

o

&

"

--- 21, 75 97 10,714 ,

LIS O

,

17 174 ,11

.

1

,

1 5 --- 3

South "1!' :~ '12

O 1

1 '

, ,

82

036 1 6

6

"Nerds ) --- S 1 North Ca.

Mississippi). 1: 7 14 114 :8 6132

309.7" 14,8

3'

26 202

'

1 0

19

49

8

'- --- -

5

2

9

' '

M :::::::::

1

: 3,6

I

408

. 698 3

' "'

447

'

3S 3 3 7 2

;

N..h ........ 1,368 .342 7.640 :

13 4 09 ,282 1 ,594 ------ 5 2

lawas 1.1am......... 169, 4" 211710 ss, "

'

7 IN ':

S

Uf: so , .1 go o

August&.-..- ....- 1

'

1

1:178 812 I.135 43 3 4 226 2 5 1

sort I'Ms -__

Is .2 1 " ~3 a

192

B

0,9732 7, 20 58 6:27534D4 6: 2

16 2":6 190 89....

1

.......

8

26 4..... Connecticut) .mtfmd --------- 60,302 ,565 4 39 1 2

.366 ,128 563 ,02 7 6 2 p _::: (New Nompshi,.) .... ortsMuth-::::::. Providence- trend Island) ,149 12. 873

84 386 3: 89

21.205 112,818

8

2,131

.. _

1. 32i 6997 3g oo7

Ch,

one. _.ww_............ ...... .. W. 171 110 020 s. Los 10 212

I , in a,

661: 13

0 M

76:513

t M

50 260

,451

29 721 ,IN 19 463

0

140 M

932 U

3

.

55,237 ,11,467 ,029.039 31.568 .94,496 :0 995 ,4,438 S 8 7 Milwaukee non",

In)

3 1 7, . 11 1 7 1

3

So g 116 2 . . 1 -----

(b) bed 2 2 : 2

11 ,,43. 3'a:688 675: 90 :2 2 098 ... .... , 207 98 6 6

Cl.d .........

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

C .-Ians -------- an 1. US Z, SU N2 ,011 US . SU .192 o S13 Sal

n' 1 171:1514 3,

Z

10':6289, 2: 515

18

t54

3,333

31 049

.102

1 0 392

3:510 311 9

2 8

8

"0

2

7 Wl ... 1 India, K t k

141:612117 '1'0'0 1 62: .

05 06

2

72: 9 86

562 93

9

252: 798

" '''

37

8 415

639

537 502

5,589

2 104

2

2775

2

Lou en uc y 23

Nlk'n Wait vir&~;13).

o ' " 27

.

993 763 t 2 1 ...

,

219

,

--- _ 2

5 1 R,, 21: 121 . 99 06.652 486 799 313 441 ---- 2 3

='a" IT. "3 a. '

7, 042 . "? ,fuct

*

m a S

A i I 1 b on,

.870

3 1 11

'

3 0

7 111

S 4

111:9455 0 171 W 0 6 31 ----- 76 2

ust n a : ~ h~ 3

D. 1. b::ow~:::::::

a k

0 3 5

43

4 716

: 75D

402

570

21 532

,

111

.

716

60

.

::::::: 721 13 35

Little Rack ----- f r, anso)-------- _

Iew 11, ... ~Lcu a -1 ...........

i;

,

24,157

15 139

1 11 1 01

, 23

6

2123 :759

568

S47

.

3 11

96

19 78 - 1 2

50

7

5

kin

as 0 home Cl Oklahoma) ...........

-v- CRY .a-- ------------

.

US, So , n

I

Us. M , M . Us

-------

US. M . 721 U S

A

2on ':: 1 : is my

1

757:4317

5 217

344

1 :101; 4

07

,1:'31315 3 2,221

-

41

804

5

2 111 15

1 1

b 2

' '"

991 .367

''' '13 1 '

84

3

. . 3 1

a b

204

: a2 11

16, 94

1 :2100

so

234:5113

75 80

213: 7 1 1

309

11 7

21.774

,726

21,556

773

---- -----

.

1')

9

2162

4

2

"

1" In .Ioz I. U2 M US 1, 525 1. M3 , M 5 120 S

AC

In1) .......

y

3:211114 91,

4

10:3 447 T

1 --- - 8

4 . )

Dan ~Cc lorri 7.266 ,592 06 682 .11 1 1 1 30 --- ----- ------

I

4

..

Do M.Ines.....

1 '5.4'4 '7'

:948

6

33

: 1

34

:

5 ..... 9 .

::::::

Fargo1 1 17 1 .3 557 3 7

-- - - - ----_'

6

K mao B . low) ..... 12:913 711 1.123 11 as0 796 ----- 3. 6 5 6

On "Ibralurl, a.. ('~b. ;' ------- N

,

4,111

3' 0'

1

1

' "'

.

256:446

06

: 4

76.2618

5

4

3 '3 0 7

......

6

6 0 7

...

.-

7,529

----- -

-

134 99

6

10

Asmusent.)..

S 36: 7

79

2 : 4.1 1 16,508 .229 : 21 : 205 89 5 1

1

Karcurs) .............

w"

16.619 ,629 9.708 65 68 ..... 9 -- ... 7 3

-11 -1wo ------ ------------- --------

a d d D C

5"0:7U

693

161.

3 60

n, 374

264: 588

n

188:278

1 an

64:349

1 n

3 398

5

14 7 099

"

3 525

s

330

n

s ate . 7

d .)

Carmine

331

,

1

.32B 823 722

. 5:

22

.

2 8 9

i

N. I Mmv~ o* 5: 373 3. 71103 4,776 0,415 3.110 2.177 5

4

7 1

p 1 brin

l w

7 90 62

7

4 .901 2,470 .770 4 1 71 1 1 N 7

pil brainw

:

44 579

2

2 0 81 87

4 2

803 .6 3

8

792

: 0 S

57

2 4 .4 5

5

Sr, W ........ ---- (Sea (1) below

Will (Del.. ...

0.943

24 935

65

5 631;

:744

3 176

682

44

1

2

42

.

----

- -

-----

-----

'

1

39

..

. ---------_ 3

Sen, Ir,sax,fare wellew,---------------------------

,

M413

,

22,410

.

1.GS1,5S. 1, ~ , US

-- ----

U. 230

- - -----

1 5.0a.

Al ,l,! ; W I

-----

6

7

1 ,496 1 6 2

_

:h ------- ----- 4 ....

-

to I)

-

.

929 25

'

4 78

4

3

...

) 3

1

H

---------

25:7 5

823 1!~,

5: 7

U1111

983

11825 3329 1 13

.

... 73

7

2 w:...

Lee AaNir~..:: ------ 146.186 0.1711 1 11 11 1 43 .387

28 0

33 ,356 5 B 0

Phoenix .. ............ A,Incu.) 1 2.039 87

8: 585 : '.5

4

3 479

6

1 789

- 7

11

1 d

0

emo ~N.%dn.))--------- ...

4

3:'174 1"

0'

1

11:36

'22

020

7'

. .

:65 -

B2, ------

,

3 091 or ,633 .128 1 ::: ::

I

1 11 231 11

N

1.142 5.15S 3 23B 1 039 1,135 134

1

at.

sotti._I ............ (Washis n).

at-, red 0-flan,---------------

2 f:,72

12, UI

6

401

.937

44. fair

.404

" so

,

13:

"

S25

: 1

05

AS~Sai gf~

1

prr. 1

rl IN...........................

o h .........._ ---------- ------

1

--- iDji

.

11

440

935

1:278

3 : 557

1

.524 ----

Dod

1. ributed depositary ..lot, I ......::: .......

]

...... I --- -------- 1 .541

. .....

...... ...

Totals fo r States not sh;wn above

I California_

n

256 421 6 309 07 988

'

32*212 1,625 , 7

0' 3' 1 2 2"

8

1 b Illinois..... 132:233 4:196 979 2 2 21 2 311

,

29, 7 :67 : 7

39

a

c ?

MI-A 11 167 2 21

77:.. S: 1.5 7 72.

7 1 1 1 74 4

0

3

d~ N ew Jersey

i

: 669

&1

4 :

350 3 .096 !

! ' " : '

6..

~i

to 7: 4

99 7

''0

5

1 572

0

33 N

York..:::::::

f) Ohio .......

3 :555

1025 694

6,982

15,970

5

19,604

711 111

Uf : 11

11 1

= 2

11 411

U

197

1 7

2

21 8.1 . 42

'

:

Ml

9

61 ) prou"YI.M.

Tor .............

123.429

83,013

8.107

12,940

7": , IS

638,525

5:955

42.170

54: 66 3

12.266

3

2,331

237

1.696

61

V)

i l

34 6

ANNUAL REPORT or STATISTICAL TABLES

Table I.-Intershol fee... e

collections by Sources; and by Internal revenue regions, districts, States, and other chreca-Coctinsu*c!

[Inthousandsofdollaus. See table 3, P. St. to, tax rates and further bl.-kd.--.f national totals by nurcol

8

Formal. I. p. 98.

ANNUAL REPORT 0 STATISTICAL TABLES

Table 1--internal revenue collections by sources and by internal

finth-and,.tdclign. revenue regions, districts, States, and other cograt-Confintred

internal revenue regions, districts, Stater, and other ... a,'

(States represented.by fingle districts indicated in Ipt.~:cthearxr; total for theu States shown at bottom his) Total

(10)

A--- san res-------------------------------------- -------- ...... Atlanta- llribihorn Alurturn, -------- Col ------

I. . ........ South csrogn:~_' Greenstrom............ (North Caro __

:::::::

Jac I 1 ipp.)::---------- greareass Noalhlil:e 1-res ........ --- (Tennessee).

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

Augusbr-_.... ------ (Maine) ----------------

Boston.----- __

on : ........... ::::: ~V2%, '~`L)use!,_~ ~Qrmecljmt .... Hill Po"unhouth...... ----- New Hamps"i---------- Providence........-.-, (Rhode Island) --------- -)------ Chleasto wer Iwo.......... ------ chi. I

:-

, Do110 fl NNI... wncen',nj so ... ----- ringheld__...---- See (b) below In If railan,--- --- ----------- Inexr~l _b:1. ----------- C nd I ww)::::::::::

1, 1

1

L, p West 1 vIrg1nV[i')!. ------- Ondi wrok-........................

------

........ Alb (S.*.w,,M)-bgc) B an

--- 1.1111' I4,k.u,).S) " slow)---------

Ok

Zoinky-..". .......f'S -----b---

Id".1 Brooklyn IS b:!..))::::: ....

b Manh. b:1uw)):::::::::

below)

--------- By If-

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

O~h'Abel7,',lm Nr_----------------

m,er .............. Col.r.,o):::::,:

-------

'...)

Do ---- -: ' Main .............

..

Fargo-----------

-1 ..... 107

~.North Dakota)

X. below

....

632 Orruhn -C"Y,:::::-:::- ~N-.brl~s)k St.......

..!...

S (Sea (1) b&.)::::::::: ------fij -

1W'j,hit ~sail,:,) n' 'It 252

PhIlVelphles a neelow ......

M-lylem! and D.C.)-

........ :::-::

I . 11090 Camden.

-

__ ~,d)b 595

~S::

I b:1rw Newark -------------------- 5.749

Ph] Pitt de his ----------- fS. I) below) ------

Is

urto 3.639 cin

so onall Sea Is

S t

-:-:: ---::,- (

. ~,))~b:;.ow~: -:: ----- I

4

we

(Delaware) ------------- - ------

B

n,I.h.,_ (A

A .............

I

Id. -------------- --------- Heleng.. ........ (M:t.~.) ------ (1) Hrurol.l. ---------- (Haw.1i).

behr

-

w).__ .... 48 Los

1

PhorAng-1"__

6, '7 1

1

n

h

d d -----------

on

Ramn

......

ore"

sit

Like Pit;

U

~8

I_

a)

..

an

Imrlason

IS

t

a

a

-

slow!

N d

Seattle

_

_

-----

(W

a

(

)b 48

rizona)

12331

S

------ an

S

"

(a)

am

----

I

gj~xrrstalshm

rrn)~

1

as .1 I.-maurne.

was

Puert -------- I.: Rim ........ .......

Othou*

Footchaters on P. as ,

fill.I

MIUo.;i-.:::: -------

Calif

a

1

New "a' .,k

f

"*

I

Ohid~ .... ........

h)

pe ns IvanisMxasy------

sog~ US

1, 4,15 13 21,1

6

1,107

4

2. u

195

I'D,,, 1,3772

I

165

"T' 5 511 1,743 1654

4,214 1,

03 912,11

16

1,497

I't 2

'2

1: S,3,3

15,562

1,:

1,603 3'

31:14

199

37 fl]

261

,..

I':I.. 221

2. M2

1.) 90

...........

39

" I'l9 0

22119 ----- -----

Usiiij

... 1331

...........

Win., cordirril, .1c.. in,.

Innikened lected by("ICustoms)

(19)

20

T. "I

373

50

"'795

91

'.774 11,

264

185

1

316

25

279

185

-

----------_ 91

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

no

269 ------2.150

97 9.352

. (3.677 1,838

in L 06

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

-----

---

_- - - ... -

(*)

51

.......

.........

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

Domestic

(20)

is, gn

'367

1

--- * ---i,O--

----- 8 .

2. Ni 194 699

------ j--1 .287

1251

41 71 :36144

3

3

411

........ 71

fii

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

1.283

1.011

78'4

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

2-4

1

---

-----~`)-----

5,972

------

417:791

134

n

---- ......

Totals for States not h..I on,.

3

I4:714 '"

1.47D

6.343

":"is 0

3,3789

794

Alcohol tgres-Crefirrulycl

ot','.'P. I '

I.e.,

(21)

1.80

.9951

go ;3226

.. a

as

-----------

4

52

......

i .

2

162

2

1

"1

71

146 n 0

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

.8911

US

193 3719

U

4

16

C)

17

........

2

13

"" --------

--- -- ---i1

3031

I

----------

V) 3

'92

181

......

.....

181

31

1

171

1

230

Into,

(22)

a.. am

21. 720 4.053

106 131

an. 77 17.1393

123

13,1597

862

10. 5'22

2D:T21 35,329

103,513 23,588 Us

":731 12

19,554

2.31:1.14

492

an1.190

.4971

28.619

42

I'll?

6,606

55,370

2

14': 14'

5,534

Us, agS

41

6 3

27,

3

98

92

8,411

JT.

34,75'6'

98

144. US

22.839

J:117 I'S

23:, 0 I.,2

4,467

2 a., fus

422

37 4567 8 949

327 4

2' 10

2.6235

23,875

7.BD4

.2

32

.........

61.744

14:,3 69 3

59

64.062

99,664

32

57:641 18'

28,704

,led YcerCliftled at...)

(23)

4.m

162

5

is

1,-

......H5,

us113

of

1

--------- ji215"5 3525

5.

71

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

34

1 IS

V)

96

...........

9. 14

- ------- ------- 5i. 614.

------ 61. NI us

...... _: It1:41

9365

1,176 fI 1

189 5,254 12 Us'say

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

27.651

272

----8.'4 il - i"--715--

~91331

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

...

2 ' 131 7

zi

1 US2j:

: ..... 10 113..

::ia.a 1,3,1

'k21

234: 0043 76

..........

.

7

........

gers

.....

ff,02 370 ..... . i.871

362

37.369

2 2: ~]'It

I

162 23.603

51 27.720

.........

Bear far.

Do mastic o

(24)

sn'TU

IS us

4:00

-------

_2

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

UZ us

1 20,425 34:956

03

298

23.563

1'2:-09

19 47

20:05381

13,733

I'D40581

as

----fi:jjj'

...... _32

..

6043:972

988

69 518

as96:253 DID

3'57: 1"MI

28,102

occ.N. fiscal far..,

(25)

No

4774

11593

77 149

123 1.

673

611 422

20

56 12591

25 in22253471

9119 U?

427

as4

07 21

- 110

435

as12

1. 931

40

13

1'20'

66

257

38

IN'

98

65

Is

IN.

2

.38

9,2

42

23

2

131

1

33

33

..... ......

24D

so

339

832

96

237

507

79

S.W
11

ANNUAL REPORT 0 STATISTICAL TABLES

Table I.-Intershol revenue collections by sources and by Internal reventrat regions, districts, States, and other "itol-C.ritirmed

IlothowandlIsId.t.n. Sai 3, P. 86,fir, tax,atosamd further breakdoam.1 national totalut byssuri

Tobacco to.. Sturnp tax. .. documents, Other in,ths.

..to, and playing cards

Isfuse, and tranntars

Internal-x.n.glInia iStates, and other

of bond' n 'of Indebted.

- or

"Pit"

i

M.i ..,k, foreign n- Playing

(Star. represented by single district, Indicated in

m foists 101 Other States "awn at bottom Of

Total Cigarettes $ Cigars A I tured ,

Dbacts

Other Is Total

..

. ir'st. md

dead, of co-yone

tabm1ler oses; luillkin

1.) Sales by Sales

by

transfers

Pa.

trou.s.

district

dinarters

(26) (27) (28) (29) (30) (31) (32) (33) (34)

U,ItW no,raw, sexual 2t Oi 237 2, Mr W out 212 sag 381 2* Us 1A39 M 45~gscs exi M S, Mer

Ati,wass

-M

1. 3,1101 13, Us a. 233 633

a *'"' If 1'1 1""

Alaba a)

' !~' r

I 66

2718 -- 626781 1 ---------- (.) ----

_ _

L: 450

730

1: . 5

655

298

m ....

76 mgba .......... B m (

Col. h C I

_ S ' r

.

1 184

--

- ---------

,

- ----------

515 413

`12

----------

Gi : IN."11, C:,."in 1, 26.: 316 i

.263.144 4,f 0 552 1.4 1U 4

Missinippi)...._ ---- -

'J'a'k' Flodi -

------

i ----- 140

_

---- - 23 . 098

__

.... ..... 9

3S3

2,873

3

09

2,307

84

56

6

---

Nash

1:.33 ......... ,, .

1673 62 085

1

860 224 2(

se.............

252 asis

(.)

is

3

1

.: No

189

2'.7

No

X.On

9

as

ors"On .in .

22 12 ------ 8 2 3,658 1.08 1 2,538

...........

39 .

Vermont) .... ......

I

.......

....... ------ --- 97

5

7 22 ------

He G.Ourectic

P. No.

Rr

225 .......

-) ---- --- ---- ---

1,351

13

I

8

23

H

521

57

P,I ode Island) 3 3 ff ff

IS

3 98

0

12

1

.............. . ------- 2

`1'

. a

:

23

OF ' f: " ' ' 7: "1 1''

. .

R!"1 SMa 2) a a

-- - ---

165

'

12

3

1 146

34

7 704 1

7

l 196 7 968 211

.1 i I h l . in ) - ---------

oil wi,..,I.)::: ............

I

1.368

57

1 ) 62

"

,

15

TS

2: 2

2 75 1:021 '38139 866

Sce W belovi - -

Sp

I (.) 316 ... ------ 315 ........

-low, ............... - ---------------- 7". 71' 1.7 a.

11:,an, 6 In "0 sa '1 1' ' "7

C and S 0. ---- :: 2.4,10

_

.....___ ... -

1.12

964

17

468 a

8 66

1,250

1. 516

---------

1:361

24

1: "4

2

------ Indian.)......

I t

391 771

504

1 779

426 808

..... __

(*)

1, 064

785

78

398

283

Loi n i

397 1-)

Pai (Was Vint "

I

.

1 1

0

(*)

,

12 3 137 ........ . 274 243

3,

( 1. .........

RIch.md1.::::::::::

---

3,3:

747

Da,

360.

f,o~4 2,G32 . 1.

547 1,311 131

.........

... ". . . .........

no 1.) 9" 0 2

. 8'e" 4'1" 'M

As' `

atil ----------

... --------- ------------ ---------- ---------- --- .3 193 50

Seeo. ~~h)) b

D belowo_ :

"

103 102 1:12 3

....

---

IS

o ........ ..........

Littl Arkansas)

-a

1

..........

1

3 3

12

1

e ...... .......

N*

Louisiana).. ----- .......

w o

--------

-------- oil 1 1,418 go. 509

0kohate.) Ok,.h,

-------

::::::::: .......... 1.104 740 365 N_

wis, CltV ween... ----- 55, 1" 1,

U.

-

220

A

r i

452 ------------ 45

21

....

1

......

Ns

472

....

4 91

38

94

33 Br.k i

B. 2

0

......

Vl

652

----

---------- 647

5

M. bet". 413 33 no 35 267 53,628 1,924 51,656 149

Sy

36

1 28

am (-)

a

262

a

-

....

4 si?

262

2 .2

.... ...

sixwasswe snesse,--------_--------6.li --- M

Albert- __ mith . to).. - - ~ ...

....

-

..

:

....

.

173

' I

55

~

11 C ::

h - yarm ----- ---- Wyoming) I -----

---------- ---------- 119

1 204

99

719

..

Do. Col I I)

Des M uwa)'-

....fV ... ... ... ,

937

832

5

6

----------

...........

'"lo

V) ... 139 126 13 ----------

Maealf;- ----- 551 ..... 520

2

31

Ont.hs_ ...

W) ------- - ------ ; --- 706

1 661

4

05

1'

61

295 6

.

2: 317 663 93 719

Within............... V.....) ---------- -------- ---------- --

.....

687 532 155 ..........

vi . .. .... ........... as, we 6 23,953 1, on 1, core

NO ' " '

0.

i i

and D.C.).,::::: C. Ifirt............_(Mary

lon

'I

If b: cw ____

~

oo

3

0

00

1

. ...... 20.

94

.... 1 : 015

------

922

189

4

1

5

13

1 1

Newark S jdj Is

Ph IM Ibelow J515 ----Fj .... 8.24471

78277 2 1. 48

010

2,437

2,957

1,944

__-----

80

2.956

1

,Itbb a below

IS 1 (*) (*' "so' 1.227

668

I

S

Wilminghm........... (Dart ...(a) ibe -w ---- .....

14,743

...........

.

14.7 2o

. ....

11

..........

... ......

..........

132

1,037

.... -----

28

32

009

---------

---------

Saw Invenese. .. ...... ................._

* gas

..

30 n ", a"

76

".an

73 1. M`3

1

I

If n ! ( )

2 19

1

84

34

-

(,) - o) ...

Be,_

..

. . M `

...... ---

---

-- :, .. 219 2 00 is ---------

Henet ~H __ . ... '221.9) --- . ........

--- -

15 386 17 364 4

Los A. .1 ---- (Sao (a) below)...........

A i

48

ii

23 5,473

11

...... ~

...

2 2

5,442 574 313

,be Post,. ,*i... ----- ( r zona)...

`,

~:~

---- ---

ff

-------

9

09 725

185

Reno- ..:::::::::::::

----

490

331

34

109

143

222

----------

.

So.o"'landsci a "City- (So 63 7

-_

26

---

29 12. 211 11.71 3 1 113

........

Sarattl................ (Washimiti ... ------- -------- 5

.,~S 565 1:

33D .."

sat w~xseval Deawaskisser ----- :__ ....... 4,93s ----- as to

Puerto Rico--_--------------- _. ............. ......

::::::

4,930 _-_ ----------

86

-------- _

86 I

0

the, ........................... ____----- 1.......... ----------- --- - - ---------- ----------

T ot r States not shown above

s) "..

"0

28 30 2 11 11 11 113 6

5

35

' ' 0' IS.

13 1,

146

7 :o

19

:4

96

8:

283 1.24037

Missouri--

Ifc! Ntis-;:::::::::::

I Caiam

::'711 ?~

94011

994

727 48

2:6 2

256

30

1: 94

44 669 is ?

r k ...........

558

1111 .4 27. IS, I- IoS?4 53

'

I) 2

Ohio ~ ----- ....... _ 5f

2 1 ........

2

Goo

485 1 1: 611

1

:

:.1,

23 7.

5,446

Pam Irani- ........ 1

-

2 4: X. 2:

'.2

102

. 9

5 284

97

L"22

041

.

3 255 11) Tex s ------------- 103

.

.

Footharies an P. 89.

ANNUAL REPORT fix STATISTICAL TABLES

Table I.-Internai revenue collections by sources and by internal revenue regiori districts, States, and other areas--Coxistinsped

In thousands of dollars. See table 3. p. 96, for tax raters and further breakdown of national total, by sourml

M.O.I.Ituni.1-ii

Iii-mmu. sit

Is

rusjuddi States, and

.the,

.

I 1

(States represented by single districts indicated in

.7;aa as h1how ; totals for Other States shown at bottom

'a"'

35)

Gasoline

36)

Lubricating

at

1,

etc.

37)

Tirn (wholly

.1 1. r1t

IOf rob w).

...I too..

ad tread '

sooner

(33)

Motor

lablelas,

h-l,.

bodies

'

part.

ad .,;6.

orlas

(39)

Radio and

television

soft. phonegraph, m.

poneri

(40)

Refrigerators

.1,

conditio;,rs

"I,

.,!".ad a

.11 ppill.-

(41)

,

, other j.

42)

thenswar Istaten, I................ S.M.es, 2.ear,na 74.41. -98. m f4cani soul on.no 22kera

Atiessurs awalm ".ne ...- _

I T " - " ". a -

Atlanta ----- G

' li 1 `

7 , I: D I 2,059 : T28 176

.

820 .I, A, n

'

'O'=nr ab

S ' ' C:" "

:1 2 If

7.934

2 66

7

1 ,

223

2

2,917

168

15

8

145

332

152

357 Greensboro--:::::::::: hm1h C 19 250 16.179 94 2 2,196 44 780 466 I

J'C'*';jfq---:: MZI-1ppi)-- --------

to: 515

' .. 142 4' 2

3 11001 137 Jackson j FI rid.i

rinhylle -------

1:2 1

013

5:.12

7,335

82

140

7

100

1,557

2.006

1

97

81928

Its

4.467

466

1.03S

Benexass napf --_-_-----------------

" ''

217 ", an I.sous 2. no

8.185 M- oston ::::--: ---:--: ((.I:. Augusta In:)'so .. .......... 1: 747

26,380

1, 437

14.057

-----------

207

7

31

9

2.482 2, *) 071

3

202

7, M180

330

Burlington...-.. ---

Hartford -------

372

3"

322

4 672

-------

10 U 776

15

3 907

........

ii . ...... 35

------- - __

Portsmouth

if

Hampshire)::'

~ b *d

L:246

,

AN1

. 3

A

,

46 13 13

18.8as

59 Provlderce.::::::::::: R . . Island) ---------- 4.228 I RT 1.954 ------------ 9 4112

hicesso, nesswin --------------------------

Nk 'N ' 1 1 "~1*1 ) tilkya)----- 415: 7S5 0 7 6:4117 71 074 - 54:a31 1 :057 22: 2 ..1 if )

Milw..k------------- ~Wlaci

1,128,103

1

28.362

2

412 316

1

1.744.973

11 113

1:,134

39

345 123 316 7:792

2 128

Springfield------------ Sao (b) below) ......... 30. 114 16 966 39

5 : 2.9

005 2,557 4,365

.1,Cil"ts Mien .......................... ItM Me On nT M. ye l U, 337 T.m us 13 "a

Cincinnati -----

Cl...lead----------

ow)

I

711

419,656

3:

323

74.602

80

1.908

a

1

263,704

S.103

S2.IOD

240

$23

:825

4 1 l

9:169

21 11 1

Ind, ..rx,~jsi ------_--_ 5L.159 16,769 333 11 25.801 3,127

2 :2 f3 2 :903

.

Loul

vit. _

---- 97 418 65,701 2,313 16 1.277 2,966 13,906 339 Richmond Park ~,e,,,.Ili " ---------- 1.) 2: 339

6 413

2.

037

4 893

108

74

13

V)

15115 9 1 17 2

.

rvolam -----------------_--

.

trani

,

700. No ", Ul 6, an 10, in

14

3.na

74

us

398

an

Albuquerque

....

(Navy Mexico) -----------

Austin ......

"a

4

077

472:

4 4 041

451: 617 ~1~

3 1 2

......

Call-_ --------- '_So, ~b'~I,M.si 7. 94

846

35.

704

312

166

4 77

2,070

1:44

'5 ,149. IT'321

336

67

Little Back ....

1

14.

M 1 :

Losi 27 321 9 40 44 New Orleans_ 3,694 2 : R 2.7., 1. 'S

Oklahoma City 01klahorni --- _--- 200,457 192,692

6,

092 I.S92 SO 4 36 ka,

years City Isslow.__ ............ -------- ni,m "a. 227 a., Off 1" 31, in 0, -

aAlbany .......... --- 'i

rovi S bl:i.lww~_ ::--- ......

3,991

24.494

1,974

2,701

...........

122

...........

1.812

1.057

71

1 2

724

4' S41

124

4.961

113

4.345 If

off.l._ below _------ 31,322

7

4.44 38 5,425 2: 636 72 699 18.005 Man often beta .

........

W~

623.901 426.344 15,856 57,945 20,842 36 409 2 113 64,432 Syracui bell. --------- 37.292 4,82, 1 3 923 19:037

0

2: 80 11.367

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

---------- 17 '

2.M is 374

all

7 425

Aberdeen-. ------ h i

to

in

Ch Yet ....... _ .....

Sent

V

-k

-':::::::

Wye 2)

M

3

7: So

02 7

3: 377

1 112

4

a

121

6

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

,

_ ...

Dem -...... __ d .......

D. Maines -------

-------

-

`t~I

.7. US

21 212

S: 7

9 23

61

1

3

60

154

5 963

21:962

730

96107 ('? SS4 1 2161

96

G

-----

No"'It

a

kau)

-------

J

......

1: n,

1:

1110

20 .

2 42 4

,

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

.

35

K.O. Y~ ---------- So-

(e)

be,..)

s0h, 24 137 21.228 411 1. No 137 1,538 116

~

Omaha.. ...... ------

Nab

k.);

....

St. Louis ------

as

I')

be,

w

i

--------

5: '3 0

31.005

4,505

23,055

2.6

561 1,096 4.483 466

12

66

lot

941

17

903

symnern

St. Paul

.. _ --- 4 9

''

31 113 849 156 6,508 1.695 1.95

5

2.363

fLume.)

.......

: Wichita ---------

wd

-

B."ItIr!'n -ima iiiax D

16:604

an 01

IS: log

111 ON

252

U,M

1

zs, M

863

n,

*

3

M M

325

sa'an

50

17.

r i

i .

---- S:: d b:Imv)--------- "on- )

32,478

6.548

13,425

5.418 15873 15'2194

328

510

2,640

31 25

682'

4 7

: :::::::: l is

Newark

S

d)

low)--- - -

067

1 6

S,355 680 617 55,405 6.458 1.196 6.366

Phi : :::

I :: 1 be **~

2 1 :

23 1 " "0 SAI 5

4.

432 IT 2 if I

.

24' 4 72'

1 114

Pit S 1 tsl.w : ........

S" S0712.) be aw) ---------

Vill l

22ZIS2

3.671

414

. 5, 824

3,139

94 7 D

----

-~;i

1, 537

~: )

5: 290

309

5.703

'

7: 2

* 3

8: 1

239

---------- 1 1

an.axis

305

M.M if'on

)

2. a"

27

24, 291

( )

S.M

( )

3

,

us

8 2

15'say

Ancho

A "' Bob.- --:::: race: ---- ld'.h.)!. ..... ....

I

12

1.757

3

1,514

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

C) 1

7

142

1

(')

......

......

:

I

101 Hefei

' " -- aw "t'")

169 121 ------------ - --- ......

9 .

........

... ~ ~

Honolulu-- ll . I ) ::: 229 10 - ---- ------ 20 127 22 7 A

(Sao (a) Nlaai

~A ;'''' ~_

196,392

' IS

159,941

21

4.363

2

1.681 11.2191 13 5,599

Is

3,7111 9.9%

Portland. 3' ---------- O .10.) 4. 503 78 4,159 15 68

183

Ron--------------- ~14

)

237 171

1

3 49 3

Salt Lake Pity. _----

U

1-7

2,350

'1

295 4

1.105

So. F,..cI..... (Saoas a,aar; slow ----

)

l

Seettl ........ _::::: (Wash jbOh)_ ---

126,464

11.11T

113, 97.

5. 179

054

2

894

2

2,979

",

511 3145 4.009

::

new.flassew-lowelowswatfave1

, _ !.,_ _

Puerto 4 1, .........

Ric.. ------_----------_-----

Other

1 .

11

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

:::::::: :

i;~' "A

T

0

Totals for States not shown above

C TIa ii

322.856

M7' 1 -

8 417 2.57 14.191 6.110 3,756 13.99

b I II I 445,939 1 983 6:525 76

U

322 11,111

1

~ 1 .1 3 6.58

Missouri 1 5 12 41.213 1.039 1.096 1,451 2D3 2:33D

1

N=J '`r

a 2 :

615

1

1.773 71 3 121 11 1 14 6,499 1 211 61

w Y0 k ----- 11

Ohio ....... -------

721, No

444.444

2,7

44 0.

77

1

6. of

7

I

15, 94

263.752

3t:

'31

60.203

60.084

1,063

9:

9.17-1918

91,

29.181,

P Onylvehl.........

:

438,366

a:

403

36

3 155 5.969 16.811 11,95D 952

T

10.22

T Xas ----------- 520,340 487.391 14,478 5.547 7.469

2

3. 34

5

17 70

..feet. an P. 98.

81

111-
ANNUAL REPORT gy STATISTICAL TABLES

Table 11-Internal revinnurs, collections by sources and by Internal revenue regions, districts, States, and other careas--Confinued

lin thousands of dollars. Sao table 3, p. 86. for tax rates and further breakdown of nation.) totals by equirainj

R.1aftis'.0. aluxuallem.a. a'!. t ...

Internal revenue region, districts. States. and the, areas I

Ad issions

Thearbars Cl b due

(States represented by single districts indicated in paren. Total Luggage, Jewelry, Fun

Toilet

prepare. Total

, Rue,

COU06ra,

,,d ,,

s

and little.

theasuchatalsforathwStatin.ho t bottom at table) at,. ft. owns

b. .

athletic '. n ,

Imn

contexts, etc.

.M1.

fins

(43) (44) (45) (46) (47) (48) (49) (50) (51)

around Insaws, ............. _', .3's" 741,013 1111,902 n,n7 M.1sa 1,419.06 42,7n ss'm 7L M

strainers IseI. ............. .........

-------

as. sea

6,377

6,an

1.258 9'17'

2, 441

246

111 "

1. 955

1.1.3 97,

484

1v .92

323

1,-

3 1 3

7. as

1,010

Sirminj

At.

--- 4 ''

611 1 111 271 L

'

103 5 616 59

8 8

104

.,..a I It I :

.rth C

2 : 585

7

2 06

.1

6

95 6

1

:190

' 736

98

08

3

980

2,206

4:

644

14 642

73

312

' o

5

04

in ssissippl), I' 1'1

Z" `

1:

740 3 08 736 74 623 2:713 is 71 28

FlorIdg) -------

Next ....

1,0: '37942 11:797

316

4.853

2,472

322

316

4

20

1:770

27 061

7:273

1

,

531

176

2.411 12 21:

173

ax,sx.. -Iwor, ............ --------

-

_

l

21,11s

955

a,-

144

ax'-

485

1,653

53

10,171

274

"1 '"399

'

gran ~M:;Lc~;j " "'64 139 111

is)

8 n '..nl)-

' 2" V:

J1,275

3 63

2,653

50 "37217 ...J1

4,934

80

5i, 826

$12

1,409

4

1,01

3'If

7

le97

.

erfa,

He

; old C to uL_ -----

P

No. H'mP'h,~j;_.:::

.......

I

7,330

662

709

101

2,221

12

396

11

4.003

114

21,736

1 1

239 195 351

22

1,90S

14'

R

bode Island) ........... ----

P

2,207 349

I

1,05

If.

686

1:

627 330 239 3M

choose. Iaw....... ................

III- ---------- (So. (b) below) .... 3'2, 083 '

15 317

.041

2 93

2:'4'.I 5 4 N31 .9,49 9, 1 2`1 St. 83 ~~ 6214

49 996

:440

1 258

':3*91 2

1 547

a 194

Do 1 19,

%.mum

Milwaukee

S b S i l : b ] )

,

1 S111 .9

,3

1,167 3 2 31:41exa

'

5"12.

,

1:8025 32

22:218

9 503

' 450

109

' 670

492

1 958

.......... 735 ee ngfie ( cus.,pr d ) e .. ..........

S "10: 0'15

511 no

1'

17, in

4 11'

1.1117

4 '

1:'1165

3

,

14fa~.51 231 1,415.7 g, .3

67 0

1,S1175

1

~S:: ~1))

C and

6'

2

1

4~ 57 2 3,526 55,651 836 1,01 3 2:369

Inlilmopoli, I ,di 1: 44 49 IN2 3,190t 112 2.111 21 721 339 645 J,

1

. 12

Lou talk

I

1 13

1

4

5

8 1.485 947

f2~ 37, 36, 17

7

P rkersbur

11

1nn)::::::::::::::::

RIall-cl vig".111), ......... 1 ----------

J:

956

5,352

283

748

919

2,419

8

2499 J,191361 AID'%

244

175

98

87

428

: 1,412

real

. : .......... ........._

Allb -::

M`

uquerque_. ------ "1:163'1 4'"122S 17'"s494 I' an33 13' 5214 U "2:873 " 1' '117 1 In" " 2"24

2.4:------ ....... 9,886 311 4 111 171 1 121 11 1 10 171 471 1,009 Dallas- (S..~M)2.1..) ------------_ 13,1461: 4. 7: 05, 6

00

3: 2,:229 43

409 2,196

Little Rack.... A kllll )

2 015

307 912

J 7 72' 3 173 36 1

::::::: ~fg,.1.a:

New Orleans --- :::::

Oklahoma City -------- (Oklahoma)......... _.:......

4 :950

3,591

712

531

1,915

472

7

147

1,957

1,441

J8: 262

7,725

173

86

57 9

12

923

854

rk Cft, "I- ........... .......... 101

G`1

In

"'

nel

as

7.

A p:j ,w) '

-L.7 "In I. 1

a k

----------

1~ 26 116

1 117

921

1 111

7154

11

636

2 121

4,941

12 151

371

3 111

469

112

G58

2 741

.

Uff I b 1:0 4 71

. 7

66

J:991 7G

3

. 6

1 64

, 777

8

, 37

4

50, 1~ "I

Man ; b:!.*

8 ' "I "'

27'

'3

411

6' 1 13

7: 2 14

:3

5 9:780 10, 273 2,851 5,50

Syra,, 5 : 609 6

5

4 6 4:378 1 75 600 5,072 208 30D 539

onathe -low..._ ...... -----

A.~,I-::

C

37,154 $07

4 ' 1

7,71.

8352

11. M

395

231

2~ an

34

13

11,752

296

167

no1160"

2 38

'"'45

4

1,183

42

93

5"ge

, . W U.) 760 4

am..

0

....

3. 1 23 311

,

46

7

270

99, ,

54 616 309 828 B22

Do. .................. 3.394 476 I~ 121 111 1, 11 1 7 111 11 1 4 3 111

Fail North Dakota) __1 ........... 681 83 333 38

2,, 1: 13, 11 5 9

44

Ken I , ic) below; _----

On A:b n)_ -------

1:443121 2 7621 3 2 1,927171 121

1R

2,148

113

28,041

12'

"

log

1

71

333

209

5

352"S

See (C) below)....

K 1

10,129 4,052 2,916 41

2,370

86:411

1

36 351 1,125

Min. ta).. ....... -------

"a

7 9 3 1 1, 140 1

7

3 3 171 1 .

I's

11 5 1 708 951 L 247

Wichita ............. K..-) ---------------_---

.... whilede .... !phl. nelsm.....~ ~ ~

2: 7 7 4

40

are

34,

' 2"

1: 19 9 11

3

3, sea

1 1

.

14

13,470

9: 1

71

14.1 on

55

a, n

'

64

4 are

a

~ 1

4

8.11 . 9'a's

............... . (Mary and ..it

10:2

23 1:442 4 4 35 710

5

3, 11 11,703 1,566

1:

C. 266 1,982

d 1 ~:::::

k

I h:1*

Ne a cl~

28:2 5a

24

297

1 333

J: 133

3 231

lif

58

'33

2 26

5,116 264

3

6

1.23811

1

1,027

726

1 591

841

fl iue

w r

P It., below).--. -----------

l

10, 59'

.

69

7

,

4,536 1.175

.

3,183 57:080

a

64 594 2: .3

P into ) l1** -------------- 6.737 1:109 2.831 346 2, 452 1 4 797 373 298 1,757

A

L b.

Sc an

qvi~:

-

1. "1 341 77 1

..

6 14 3: 9

Wilroingtin_ ........ (Delaware) ------ 5' 1 T 4"

----------

558

".

7

I' '

28 2

"" .2

3.

"

176

".

292

1.172

267. gas

36D

8, "1

37

U, 793

2-5

10, 2n

A, M13 3 .28 .18 5 T53 167 1 121 1 9 1 7 3

........... 1. 089 107 43'

2'

1

'2

1:83, 9 1 36

94

Helena

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

(Manure)................. 842

99

367 46 331 1 031 32 117

1 10

R

H

Los Anita JS it;-1 --:::: 311: '11124

173

4,483

.47

12,591

19

2,347

485

11, .64

1: 333

R. 715

10,

4,1..

28

159.

.3

1. ~ 1 7

Phoenix .......... (Arirons)... .......... 2,259 264

076

1,

51 111 ,4,

3

IS~

5p4

S ~~

11 n )

Portland

11 3 124 399 1. 354 95

1,

. .): 276 6:795 192 6 of 529

Ron.

N % 1:0,

9

112 5

So

48 350 10,063 53 3.2

Utah)---- 82 74

: ' '31

223 7

32

63 916

9.385 93 73 310

S

Seattle- Iran)-,

1 1~111

51720

2,279

864

8.671

2 698

1,078

230

7,794

1,927

134,032

31.989

1,9939

57

2.772

692

:1.195714

q..

Of loot"nats"'I operstlems_--- s ----

---- ~2 - --- - ' a' '

I.) (.)

I

Puerto IN. ........... _.........

Oth ........ . ......................

.......... ::::::...... I I . -----.......... : :::: 1 . ....... 2,448

1,143

... --- ----f;f ---

c

---------

TotalS for States not shown above

California.....

(b) Illinois ----

ca Min Uri. -------_--------

WW ".. .- f)

g) Ohl........_............

.".., ......

1 W, 897

31:,072

44

01,0:112 778

19.619

"J" 23 0325

6 763

7:441 4

7.0

1:13 9

1

503'

3.205

3:7116 2 5

3

21,211

3135: 113

34

43:93218

9.374

12 9387

425

'3: 469

162

i ,048

_

9'

1

:

523

048

76

19

"

10

'

4,417 3"

3

42:114'

6.991

2,1,1

1 4

114 1

11:,127

14

59

2491:527 3'

70.501

,

7:"7 7 540

12:9I'D17

55.

14UIf.2

1.793

I'l

34

06

'2~ 33"2

a.1 go I

1.682

1,033

M

jl 21

2'

7 1

&' 65

:1, 74

: '028

82

Footnotes on p. 88.

I

ANNUAL REPORT 0 STATISTICAL TABLES

Table I-4fiternal revenue collections by sources and by Internal revenue nigions, districts, States, and other areas-Continued

lln thousands at dollars. Sao table 3, p. 86, tar tax rates and further breakdown of national hotels by SOUIM)

Miscellaneous excise taxes-Continued

..... .....

'i;;'

(States represented by single districts initiated in

Parentheses; totah, for other Star= shown at bottom

of table)

Toll rolephone,,,,,,.

'U~hi;' t'cla' vice- Ib' to ce

(52)

Who mileage

service. win

and equip.

numt

(53)

General

telephone

service

(54)

Transpo'.

t.~fl-- of

p nons to

(55)

Use Of sale

deposit

boxes

(56)

Coconut and

Other v.,j..

table of a

processed

(57)

Sugar

53)

Wind and

to, lost,

(59)

Unitive notes, twusl ------------------ 119,246 ...2 M,w U:r sque O.M NJ lu'On

Aterestue~" 1!t------------- _ ................ .2

"a

Atfii ta~ 6 .7

h ::::::: ~ "I") __

31:672 851 43 043 11. 754 70 4,942 351

Bit lng: ..-. AJob..,)

C hnorbi

22 135 496 412 -61

5

74 ii om --------

G,

400

2 529

50

90

508

5, i9o

175

1, 39'

13

14

3 6

11

1.281

11,1,n

90

5 12

LO _22 1 665 Jacksonville- FIUid4a 3,67 1 1 1 8 4,321 7.8,9

1

91 234 472 N.h,,Il. ............. Term w ........ 58

7

4 7

970

1

96 -137

(.)

1: 532 a--

A "`~ ------------------j--- n' U0 1' 3 5 7 24 T75 a' M t, say 2.743 ?'M

Ifesfin- a ~M ascGeiii)

I 32

15,422

26

314

22

24,731

42

4,194

30

244 ........ ,743 110'3I On C ----- so 10 62 18 12 ---------- - ------ ..... 177 He old ... 5,943 95

'

8,011 1.907 122 no Portsmouth,-... ..... Now Hampilt ire)- . ---

i

53 21 48 37 2

1

O llhode

IsI P-idence....-------- and)--------

-- ' "a

32

' '1!

4

' 1N

12

1

"' '

39

a

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

1'

R

36

::::: )a 4 51 : 1 : I 48, 556 427 4 "116 10~6,659 M

M%U ni-:-:- -------

I

10.135 971 23.274 613

11 1,194 1.879 on I : Spritotill.1d. s (1b)b.Ims)_.::::::: 25: 20194'34

441 3': 0,12

113 87 11.

111

----- ,-

37

0

932 chavarovell -1. ........... -------_--------

" '" 1" ' "

I"2 "1 o7Y12,

Cincinnati, ------::-:-- Cl send ....

13 : 10 4

3,084

03

441

5. 529 .84

7 1'

4

21).

-----jVj ---- -_---------

175

954

4 812

but----- ---

: ::-

1.1141 271 to 825 780 146 ............ ...... .....

,

kerac, 3,049 Louisville ----- :::

_

1 11 3

3

1 746 3.877 56 C) 2,211 Parkersburg-..-------- (West Violin )-- :

Richmond.... _ ... (Virginia)

: 8

7

4 671

211

532

3:

958

8 506

39

1 604

43

9

... -

........

732

_. --- Dadle. real...... ...... ....

Alba

"M

Mexico)

,

"'117

an

18

,

S,251

115

.

9, 9111

92

1

46322

............ ............ 2,087

19,712 -

us ~S..

Mh)b'!'*i --------

542 101 462 1.129

....

'Ki~i 91:12 1

23 Got........ ~S.. b, iv : 3,646 190 1,171 130 ...... .. ......... 3.72 Little R.k .... ------- Arkansas)..

New Orleans. .....

289

195 2427

443

198

9a

798 37 Okla ----------- 64 Vin home City. -------- (Oklahoma)._ .... ---- 343 103 341 27) 74

....

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

883

3,697 11- vast, City amorown-------------------

,

a,,- 11,929 0

'

3, (-)

.

M, M

Alban (S

bb

::::

It,=---------------- a.

law):::: 657

22

31

14

724

4

1

43

3, 375

67

212

....

1')

.. .....

0

536

521 it

them

J.

378 94 2,660

1 I

4

,

10 ........ ............ 764 gloor~ 1,11 7 11.7.5 73.00

a

77

1

628 35 231

-

9.895 I ....... ), w ::::::::: so ,

3 448

69

1:4

5

5 ff

.....

-- --- 583

onserve ....

------------------ M

2.73

1

ser"76

". "1

73' 1 111 Us Dakota 1" Ch

W"qrIng)~ '~

'Y"U'

50

37

1 5

6

259

28

65

is

25

12

---_------

-------

-------

::::.

426

1 659

_.:::

Dan- 1. -------------

I~6

12,

569 71 7 17 111 1.211 65 H

1

219

1

.. .......

.

De. M. i ........

'

1

11348

12. ':,75

53 131 ............ 1: 734 k : ~ ----- ......- 145

280

2

23

280

417

11

23.751

19

13

........... ............ 285

7" Crash. " l1 ------- f; :: ...

13,618 341 19.838 2,OS3

6 9 1.

JOS S e. (r) St. L.. . St. ',n=)mrs ....... 32,006 1,421 41 115 1 121 j 1 2 ---------- 450 1,569

W

hNx_ Kom )

Ic -----------

1. 913

199

39

52

:2 1

1.26406

9: 59,

2,314

2 8

93 ...........

.......

........ 1:2295 85 fold"rods"Isihis 71n .......

------- 1 ' 1 '

92S 3

4 "' a ' a

Climate.

C d '

5:214 213 4: 151 123 ('; t 333 am en U jbb are --------

Newark..::::::::-

3.

1 151

94

224

4

14 17

302

1 431

go

221 3

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

376 P _ --------

if

hiladelphia........... Sam Q below) .........

1 0: 5

85

J.

050

23 :

709

5: 1

1

7 258 (2 379 2US

2So

P

I IS..~gb " b:l*w~ Ut.U 1. 1

39

133 2,303 382 1

67

,

............ 4.7

54

_

Wil --

initiation-------- ~Did.-) ..... .......

4

I

4

V)

524I

111"

55

22

2

1

52

99

as "

s' gas go, 711 it, as 1.3 1 IS M

-

20,916 Amb- .............

ld.hui)~.

......... 51685 137 11

IS

42511 1523 --------- ------- ----

C) 679 ".1 an......

M"' '

138 33 1.3 73 32

,

13 Honolalu-_. H --- (17 660 33 1.919 1.106 20 R 11

Los A ..foo:

:: a ) ' "?fl

318 9,827 7.956 297 ...... -.... 2 17

'

Phasing

- ) i

8

4 62 77 42 ............ V)

,0

1: 3 PorHamd::::,:::::-:::

Resm-

_ N ad.

?.

384

81

15

1

661

56

221

546 at14 .... (')....

1,8711

D6 Salt Lake City. -------- Utah). .............. '14 695

46 20

.

----------- 6,677 131 San Francisco --------- gas (a) below) 34 334 933

"1'5

7,789 476 12,594

8,,07 Soubti....... ........ :::::::::

Washington). 9:129 252 14 46 1.289 134 V) $53 am" of ------- V ... Piart R1

'

:::: --- :::: I -

....... ~

.. .....

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

oth." -------- --------------- ............

......

.048

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

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

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

...........

....... ~4411 - -----------

Totals for States not shown above

I.) Coolant ---- ----

c) ---

it

No. 1.,k.!::::

If) Oh P.

amijiv 6

h) T...s ............

44~ 'd 236

286

I , 114

I ff,

4,1980

150

1 :

J, 4521

308

1,926 'l.7

291

65.832

": 11622 "

2

14.931

27:5 "76 111 844

4.152-

1458~ 746

5

25 77

1. 33

56.1 66

'319

5.17

8,701

763

538

195

301

080

3 1

4" 266

...

3

......... _

12, life

16

450

1

2.231

175

4:11

3 454

13,11

7,593

2:'J31

12.28

5.76

12: 1 9"4

Factimbro On .

83

I
ANNUAL REPORT 9 STATISTICAL TABLES

Table 11--internal revenue collections by scurces and by internal revenue resions, districts, States, and other areas--Continued

linthoussuidsofdoll- See table 3. p. $6. for tax thin and further thfaakdown of national totals by souices]

Miscellaneous excise ta-Confla ued

Internal revenue teslors, districts, Sales, and 1

ther a -

1-tics andn

a""" a

C.fir-a- B.wjim, Wagering tax.

" f "' 2's 7d

o ,

marlhuan a , ated amuse. hil .ey he, 11 . ~I dl .

(States represented by single districh Indicated In including for

occu a onal

ment and

aming

k. occ.n. W.J.'a

hi

M0to '

ps ionthentes; totals to, the, Sol. ho.n at bottarn ,s. hm

j

evices,

ton I ve cles

of table)

ti.)

(60) (61) (62) (63) (64) (65) (66) (67J

United startax. tecal- -------_- J..3 ga, 4~ ger a! i" Mat des son an all

Athembe .0we....... ......... 0 k an 451 an

60

it.

1 605

in

1 it 7

'

. . .....

,~;;

toZ

10

7

505

46

72

51 3 69

.

1, 4g8 17 - J: 7 6

in

6 .........

h I 1

C

`

569 39 43 $46 75 -416

G North

1

11

7

7

95

1

IS

2,245 2

.028

1; M 'p?

~

4

352

6

28

105

3

3 14"1 0"1 448 1

729

4 1 l

1 orid.)

1 l):

20

10

14

730 67 142 496

I

!: Sel

-1 N imrdxxx ....

l ::::::: 37 scat lat .1 a .; 4114 2wag ewa-_ .....

August .........

I J63 41

1

2D

416

2 096

1 1

12 fichumn.. M cb db)

=

i:::::::::::: :::::

19

1

165

11 19 1 . ----

,

182

:

K.U411 d dl" -.

I

-Iij

'""" "

R

9 55 7

1

. .. ---

25

1

.223 3 10

Ports day mirrah-----------

- i's .

2 31 26 1

1

3 2

44

1 1

Prowl ocle Island)_ ~ 3 22 2

1

1 3 322

2 "

--------- gra2

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

-------

34 40D 236

24

11

7

3412

172

76

4,3 19

5 193

13

21

27C

1 9

Calf ---------

fill We it ........... Wi-parain) 111 to

1

27

211 1

79 2

6 .

,

391

1:297

6

1

1

1

SpdrSfi-ld ------- .... See (b) below)... 7 302

1

00 4 89

A

clerallaxers" IJ 2,1"

26

"1J,5 703 i'm

go

it247

795 4 21

Cleveland ard f below ---------- 16 3 12 190 14 161 4,080 11

1

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

Moister 39

7

5 9 3

609

3

'7

1 31

10

79

153

3,089

994

8

1

L.U11,11 Par

kons westvi'lin 3

21 ` 10

138

58

_1 7!1 5 8 1

4

1 Ric 12

broo

20

1 6 102

a

2

as 42.

. ,

at 03 A. am

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

5111

2 1'"40a

ll

is 3 14

,

179 2

1 131

2'

86 3.

1

33 10 4

D llas g:jh b 13

1

1

22 T 3 4.020 o 4

L ait,,

New O'led ~'L. ul=))

4

10

us

965

39

6D

6

61

6

4

2 11

9

'D

121 8 is

OkIshow City..------- Oklahoma) 7

1

50 70 6

3 1 1,672

2

31

Vowl, City wrolan.... -------- ....... Sao 4al do

52 U15' 775

42

5

sell

1

A

"' i i * ------------ a. b *

64

143

78 IS

l ll 141 37 1,762 6:jo

.

uJifuj -it i -------------- ad ~b

33

o , 94

3

48 1

2 '

:

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

Mariana.

my

73 6

1 11

2 37 2:92

1

21 12

Syrdcas._

::::::: be! W) 7

less

85 6 0

607

3

26

4

Us

896

ga'dial

ID

Is

I

so,

Increases -fore

Attird ------------------- D, 2 151

3' 1

4

IS

475

32 5

1 ........... in

1

11 100

17

57

6

2

1 1.570

2 61

Denver M low

0

8

' If

an e

104 1 12 1.65. 3

25 19 1 9 217

1 4 3

Kann 5 2

I

64 (9 1 2

53

1 : 10311

17 Omaha abrnk.)--. be, .......... 17

48

17

194

0

51 6 15 1.570 1

So (c)

S': me, Mich

1K

9

122 17 5 11 2 5

WIC Innon) ..

6 323

105

2

9 1

:373

......

I

.........

......

.. 0

Persuaded.- xwkw` "

45 an la

,

Is

"I ~ ........

JIM................ (Maryland and D.C.) J4 2:4 l 6 101 8 47 1 :576 8

1

1 V,

.48

C.1d,,- of below

~

7

1 ?8' 141S' 6

125 21:2161

2

-

53

P S ~d he

hit.

be aw

158

5

313 Its 16 226 3

"3

4

, 6 10 OB

PittLb 0 0 ---------

W

'~

34

1

7

5

' "

13

14

ISO

2~

2 20 11

1

S1.n

S

~: Ixr.w 4 14 45 3

IS

1,0133 2

4

,

war.

Whorl D.I. 10 2 25 3113

i id

2

96

-

- n

Framwires real we ----------- __ ...... __-

52

1

an 2,"a

39

s, a

109 V) -

Ancherel. I"k)

")

3 31

16

6 627 1 V)

N

r

on

M

")

I JOB

I

2

1

5 477 6 .....

..........

roluia-----------

er

'

He '

---

4 156 22 1 4 306 0

33

V)

59

Lee Arg.Ii;7:::: :::::

S

59 111 201 1 85

1

3,780

654 3

phodmix- ----------- [A

a)-

-------

46

14~

346

32

48 3

2

13 1"'

10

1

Portland::::::::::::::

as

n)

------

Rare ---

.

. .....

:

----

----

I 4.151 14 4

35

743

If

229

03

0

11 Sell L. -- ty ---------

11 C,

dn

5

1,

223

22,

28

11, 7 14

5

07 33

to

sabb

the

fi

So, Francisco -------- -------

l,

1, of

2

74 1

00 597 1.526 2

on u ........

Illinois. . 11twaractisdard operations,

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

Puerto Rico ...............

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

:::::::: ---------- - --------- Other , ----_----------- ........... ---------- -------- 62,54

Urd.t,lb.t.d ftapoltIry, ----

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

ft, States not h-m above

IOD

a

12 354

1 26198 5 616 B-855 63'7

27

b

i

41

S3

102

277

33

1 IS

1 5

6

17 .

2 994 4

Missour

cd I I ::: -:: 164 250 203 7 21 3:567 3I a4

a

11-Yerit- 31

9

421 409

,

111 7:113 875

5

42

1

:

2

I

`

~

0

I

29

70

74

Joe

305

3

36

is

2

359 P ~ ns hi

' 8

h) 7 35 187 242 1, 89 1 158 28 1)

...

84

Foortnotes an P. 88.

ANNUAL REPORT do STATISTICAL TABLES

Table 2-4intornal revenue collections by sources and by quarter;

fin thousands of dollartl

Quarter .,didSource of revenue

Sept. 30, 1962 Dec. 3;. 1962 Mat. 31, 1963 I.e. 30, 1963

(1)

(

) (3) (4)

Grand total --------------------------- _. ----------- ........ ....... 23, 534, 939 20,832,143 29,011.153 a2,497,160

Corporation Income fix I I---------- iv

_i~f * -

nch, dal in... and emplo ment t.;;; "t0 ' ": .. j I S " 033 6104- 106y , ........... I ........ .......... 15: 23. 2" : 650:6S5 I : 220:860 21, 86 29 6

Imum. is. net withheld I I ------- ------

Inoums tax withhold and old-age and disability ........ insurance i ......

1 2.559,976 522

2 433

11 762 74, 972

539

-.09,9 16 5

3 3

7.792,057

Railroad 1 47 D4 retirement ---------------_----

,

,

148,921

,142 ,

284

.

138,501

3, 9 3

14 :03 a

Unemployment firmu........... ..................... 870

9

27,421

g

Gil Estatotax t ------------------- __ ------------------ ...

t

458,296 442.790 131.5411 5

5 ' 979

. . .................. ...... ......... I—,......

t .. I total 7 . 246 1 'N4

2 637

0

, . _-------------------------- 182, 006

............... ......... 3.396,335

.

41 .~ l 3,21 7,074 3, 3115,073

Aficehol Joan, total ......................... ........_....... ......... ... . . .

to-6.624 968,565 -736, Sol 999,899

Distilled spirit ...... ------- ......

...........

Winds tonditils .1b

576 492 11 1 " 1 3 ~ 111 131, 1~1-

. , . ...............................................

Bear'......................... --------- ...........

....

.........

22.922

237.310

:2. ~9 3,

83.460

24 01

175,908 2134';77

Tobacco trade. total'-------------------------- ..... 516,010 523.402 469 551.356

Cigarettes --------------- .............. -------------------- .......... I ....

"

498,544 504,945 474,310 532.725

0,ra,-

12:11,

4 559

70

13 04

4:753

9181

4,3437

13.808

4.922

Stamp taxes an documents. other instruments, and playing ards. total. _----_----_-- 36,220 35,520 37, 444 39, US

nun pro transfers d off bonds of indebtednexas or capital stock, foreign Insurance

or"'.

ca:

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

Ma Som ts 3 sil b lli f

2131.- 21`3

10,797

11 4

12.97

.

9

220

1 1

10,902

r o , ver u on 21J8I6 trans er; ---- ---------- 1,929 2:30 2:3 98 2,169

innufactutims'exchnit...i, total ..............

........ 114331487 1.301 308 1,497,756 1. 377. 757

G.solt..........

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

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

Lubdcatm oil .W --------------

640.207 658.545 112 17 7,112 ,i . ..- .........

Time (who 1~ or in part of rubber),

M t hi 1 i

It 1: 1,

52

100 31. 260

1

o or y.d c ft. 1. hc hass s. bodies, parts, Ill and accenuries. -------

etc

"

c-pprents

"d ' " ' "o" 'P'

532,5

11

384,528 353 55, 683

, , ........

R. f ~,:r. Ursefr- a-- -, -t-.; electric, to., and oil pjIul;ie..........

3738, 940

607 49'081 2 2

48,894

29 16

4 7: 305

Other' .......................... 5 .. . ...........

----

57 :

990

6

8:D "59,

65,,0 6

87

3 ,775

54.213

Retail..' excise U... total ------------------

--------- .......................... 101,130 93,644 156. 832 91,953

laws Lutia11ye.'set,- -------- ..... .....__.. .................. ................

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

...

19.032

40,966

5 '

25,529

11 2

13,86

Toll.f '

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

751

31:391)

5 314

31,111

1 ,:

Its

11,116

1:681

21,221

Miscellaneous excise taxes, total ---- -------------- __ .... ___ ....... 457,59T

_

4119,022 378.014

__ _

365.024

Adithosichros:

T'""' Rad I"is I I I`-I I----------------------------------

10,971 1 3.090 9 154 1 114

Club dues and Initiation Jan.. ....:::::::::-------------------------------

~- - " '-' -'- -' ' -"-'- ---"--

3:71712'

1

0 506

ll~ 111

,,

14 171'2

9:,

21 MIf Toll telephone service, teltifiPh. able. ~d 1 iti:, ~ .. .Il.K. .. ~ 1., .i,.

and ejuipment service................._-

fteral elophon serva 92.471

,

66D

,

"

.

e . ................. et

Tromfortation 0 persons 11..... ------- ____.... ____........ ........ U f

1

29.871

13

13,150

16 133

1 25: 532

54

11

l

26:036

dep d 21 111 .d.galtbUe........

Coatut and 0 her vegetable

1:

622

1: 6 03

:557

1

1: 72

D I",rIFi

o

-1 ---

to

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

4

24.557

2

28 287

7

23~ 294 2 77

1

as.

27, 2654

7'

27:493 30,225 27 . 0

.....

C.i.j,~.;wr.t.d 1 ........I and gaming ------ -------

flow no - I- P-01 tables, titc

13,

222

209

1,281

1

74

1,150

496

4

" 1

', to g. . ----- ---------------

wall"" I

2,962

3

44 299

1:

19 3

0..p.tI:mJI---------- .................................. --------------- 227 I M 57 144 Wood.

Llft t x o n f4lih-m-, i" m,_of-a_r,n--h lo-I -------------------------------------------------- .....____......................

re

1,393

" 1

3

ll:'7107

1,328

18 624 1:'9 341D

1

j ,

0 the ---------- ---------- _ ---------_--- ..................... .1 25

167 ,

02 136

Unchnial ad n1fis to..:

Und

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

U. "I'lled col I.he ---------------------

tatrib.t.d'sTpoltary realpre'- -------------- ----------------------

- -

114

14, 377

-

883

68.859

-

124

-73,133

I

1.759

57.438

Foohnothe an p. 88.

85
ANNUAL REPORT 9 STATISTICAL TABLES

Table 3-Intiffifival thervannue collections by sources, Fiscal years 1963 and 1962

Ifirthoustrodsofdollaral

sconoinfurninti.

Grand total, all sources__------------ -- ------------------------- ---------- -11-111 --------------------------

corporation income taxes. total -------------------------------------------------------------------------------

Regular- ,,..P, ------ ................ ............ ------- ----------------------------------- ---------------- ---------

Individual In..

.

. ad employment Us-, total------------ ---------------------------------------------------------------

I...m. to. net .1thheld I -------

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

to. withheld and old--&- ..it disability mouton., total I I 111........... .... -----------------------------

R.,J,. U Jib .turn........ -----------------_- ------------------------------------------

ndistributed depository repahm'... ----- ~ ........................

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

Railroad ottir... nt. total .........._---------- ------------------- jaj~,j;j _(piriw ~ -JonlWy i 146Y. Railroad employment compensation tax; employers: to, 7 ~i Percent. mrPI

63jr percent each): both imposed on taxable portion of ..go,:

----- U,..Iv.d with ---------- ---------------------------------------------------

ndi,t,lb.t.d depository oax. sm I............. -------------------------------- -----_------ _

R, read employees representative tax, 4~j percent on taxable porlion of wages (Prior to January 1, 1962, 13i;PVcon16::

Union

of

on taxable portion of wages, effecftws janualY 1. LiffIghil,ment insurance. employers of 4 or more persons taxed 3.35 percle, r

( or calendar 1962 and 1951, 3.5 and 3.1 percent, respective Y); redit allowed up to 90 percent o tax 0 onotil

bilious to State

un=yment

food, --_-----_------- ------- --

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

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

F,stato tax, 60 00 an I n 1 77 percent an portion aver figiluated rates from 3 percent an first $5.000 of net "lots in excess Of 1 .0 6 mPtO D

$10.000, ; credit allowed for State death its., III it In 2Jl

$5,ODO a not III io e,cWsiWjiij,(6i exe~;pH'._n_ W Kiii iiiiie;t WW iiOiiWWMi ft I.Wrachoit., rates ....ig.,ncent on first

............ I10.D, oal;S300drionuill I for each don ..........

E

------- --- xci" brounk total............................

Al.bPl is... Ist.1--------------------- ---------- ---------------------------------------------------------------

Distilled spirit. taxes, total. ----------_ -------- - -------------------------------------------

Imported (collector] by Connotes. niting a.m. as domestic) ----------------------------------------

Domestic. $10.50 per proof liallOn % wine gallon when below Poro I --------------------_---------

Rectification, 30 cents Per proo IM an I_.------ ---------------------------------------------

spirits, $25, $50. $100 per year ------------------------------

R111111 Less ihim 20,000 proof gallons, $11D per year_------- .........._..---------- -------

20.000 proof ifidlimol .1 More SnO Pill Yrxr-,-.-. ..-. ------------ ---------------

Retail deslon, In liquor or medicinal spirits, $54 per year... ----- -:::::....

h

255 W oloolle a,.or air ... ------------------------

Manufacturers; "'"a.1 da11.7' at $~l p,ry ...............

Sill.res, Penalties, etc ........ Stilts or waidevions ------------- ------ _--------------

Wines. cordial., tL, taxes. told ......... -------------------------------- ............................ _---------

imported (collextad by Contents, rate, voidimn'sli.)

Domestic (Still 17 c.oft, 67 art,. .25

SZ40; lip-ra, idiots. 31.92)---------_----------- ------ -------------------------------------------

0'eug.ths,not Us,.- doiferl in wines or In win. 0 w and be X Par51.al

-

"

Wholesale dealers In wines Or I Ines and $2 par

Bear Ulm total_ ------------------------- -------- --------------------------------------------------------

I,inromestic, ported (collected by Cost... at. in. .1 domestic)--------- _ ----------- $9 par barrel of 31 fallim, I.............. --------------

occulatlonal!axis.: to

L than 500 barrels per youll ---_---------- -------------

SM barrel. Or nrrxr~ si I'D 'Par Y.Or

Retail dealers in bear. 4 pail... (includes limited .fail deal.. I. win., Or bear $2.20 Pat humth).... ......

Wholesale dealers In beer, $12 per year.............. ------ ----------- --------

------------ Tobacco taxes, total.--_--------- _............ -------------------------------------------------------

Cis...ft.. total.......... -------------------- -----------------------------------------------------------

C an A fsprall), $4 per thousand, . ................ -------------

....

Clan 8 large), $8.40 peg thouland !_. ----------------

Cizars, prepayments.. ........................... ................... ....................... ------

total-------------- ------------------------------------------------------------------------------------

Large clipars. classified by intended retail prices, total ------------_------------_------------ _--------------

C .. A (Rotation at hot ...r 2 hi~

"

av'h.11

Class 8 (Over 2It cents, not over 4 ........................--------

.Ot:,.c )~I3 P. the nord ..... .........

clmxic~ :;4 *,*,,1 cent; each 47 ,,, f1malml ----------------------------------

-------- a can iiohch~~

c""~ ont

I P. h

Cie. D 0, 6 cent, .... it------- --------- ..........

ex h

c

. I, P , In a. ..............

E.", 'F

Class G(O-20-ii.,h), $20 P.,"th',iosend ....................... ----------------------

Factories on P. SL

86

1963

Fiscally ...

(1)

105,925,395

22,336,134

22 334 205 1:929

67,992,067

IS, 204,971

51,266,988

50,289 180

:

a

977 08

571,644

577.957

-6,334

21

948,464

1.2971,614 IS

.943

13,409,737

3,441.656

2.5117,068

2,45 .157

006,375 9

25,510

77

23'

13,23

1815

1.9 5

89

4

103,733

7,951

93,920

1,718

144

930,855

8200,761

53

21

4,489

Sao

2,079,237

2,010.524

2.010,524

50.2ii

50,094

1,08".

10,773

26 516

5:12

3.6962

2,852

1962

(2)

99,440.339

21.295, 11

21,293, i1_7

1,994

63,357,F65

15,317,377

47, WIL,1411

4G, 308,529

709,1119

564,311

547.130

16. i 0

'21

_07,09

1,2796,;27

38.160

12 75Z 176

_3~32

2,423,3-i

431.C47

1.954.355

23,010

87

12,111 715

1,085

12

991922

658

90,3ss

1, 5:39

331

818,030

0i

sm,: s.16

140

all

3,8510

- W

2.025.736

1.956.5;'7

1,956. 5:9-I

-

49.7:16

49,5811

!6

lik'a

2

7,07"6

243:5[8

7.15,151

ANNUAL REPORT 0 STATISTICAL TABLES

Table 3--intermal mvenue collections by sources, fiscal years 1963 and 1962--Continued

Ifiriffiximirmfituld.11.,s)

Excise taxes total-Continued

Tobacco taxes, total-Continued

Cigars, lot-1--Continued

Small cigars, 75 cents per thousand,. ................................. ................. ------- Pwiiymant---------- ........ ------- ------------------------------------ ........................

Tobacco materials, tobacco products, and cigarette papers and tubes (Customs)" .............. ...... -------- Manufactured tobacco, 10 cents Pei pound I... -------- ....... ...... .......... ........ Clg,afr, pop,,, and tubes, papra Is .n,t,p,, 54 tubes I cent per 50 ------ ............. ......

c.

.1

To cco imilinfill-VI.I.H.Ol. I toon Reveou Code Of 1954 .... ----- 5731, .......... .............

Stamp taxes on documents, the, instruments, and playing cards, total ----------

Issues and transfers of bonds of Indebtedness or capital stock, foreign insurance policies, ind doets of conveyance: n

Sill. by postmalfill.......... .......... _ ... ----- --- ..................................... ...... ..... i'I

So I. b1sdistrict di-to ............ --------_----- --------------------- ------ .....S,

ayint cahm cents per pnk_ ----- ..............................

Ivor ull 50 Percent Of profit ....... -_----------

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

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

M...factor.., act,. taxes, total ._----------------------------- ...... ................. ............... ...

137

1,434

IG, 381

6624

149,069

45,687

94,685

8,574124

5,610,3D9

notion 4 cents Pei gallon,....-------------------------_---- -------- ---------_--- .................. 1.4 11,th rI...migloll. etc., 6 cents per gallon; cutting oil, 3 ciarts.................. .........

'141: 4311

Tires (who or in part of rubber), inner tubes, and trend rubber

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

Tires, lifighway I Pa. 10 cents per pound, other, 5 cents perpound, except laminated Ifiren (other thin type used on

high

way veficles). I cent per pound ........... ......--1... 355,767 Inner tuba, 10 cent, Par Pound ---------- ..........

8

T,,,:hd,cu11,hr..1 cp1bopi,.r,O1u'1td ------------------------------ ........... ....... ................ yJ on, c a, , firs '~

and accessorial: 23:6'15

Passenger a.t.m.biles, hassi, bodies, etc., 10 percent.................. .............................. 1.5 Trucks $,no buses, chassis, bodies, etc.. 10 Percent ..................... _::: 30"3:'14'40 P rts ani accessories for autemoblies, truck,, etc.

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

224.507 R.di-lind i 1,or"", "inn, television sets, phonographs, components, a ------------------------------- 11 1: R.ftI gar a tois, 1, eeze,,s, . II -cimd Ill.no is. etc., 5 percan 1; so 11-can Johnad aIr-copd Ift. n InI Iti."I'O"p'e'rcent--------------------

64

411

E

PIP P. - .................. _ ................. ................... 68,171

:6 Phoriogr.ph records, 10 percent.. ------------------------------------------------- 27' 421'1 Musical instrument,, 10 paxvxhj~,,~,,: ------_------- ---------------- 20:01971 Sr"'Oll '..,dc,'fiot1hxn

'ban runt

a, it 10 Percent ........................

in

in

to.. 10 Percent

is

9

issh

....

6,300 usin m' Vid store machine, 10 percent.... Cameras, lemsest, film, etc., 74,845 10 Percent: household type Projectors, 5 percent EIne .... ...... 25,205 I rim, IiIh'Itill, Ilh,.,nd,,,'

"li nll',P' ---------------------------------- 16.235 FI

an in or 0

Us cartridges. 11 perceritE ...

35.998

M hlnl..l P-11s, pens. la Perc'e`nt!'1vi.gZ "Is or light., (fil Or 10 pilc---- s"j'h`ii_n'gIJ---------------- 8.674

"a" ".

2

cents perthousand(but no-tto ...end 10 percent of selling

price); formy lopede

.

o

it

I

or coltrin! t,.a, 536

.

c

.

nor n.t.,- par thousand........ -------- ---------- ------------- ........... ............................ 4.102

Recall....... is..,. total 11------------------------ --------------- ............. ......................... I—~3558

Lugage, ettc.,,10 percent.

-------

J is

,unt, lryd'%,,..01. .*oc.*.n.t::::

Toilet preparation.. 10 percent........

14:019

902

121.217

58,351

tute'. tax., let.] --------------------------------- ..................... ............... .......... _1-1,619,656

Admissions taxes, total__........ _. --------- ----------- ......... ...... ------_------- ---

Th,1At.lll,cohceft. thietic contests, sit:

d.k inkim, Ili k I part firJesch 10 cents or magir traction thereof of the am un paid In ..c.. of 31 I,_ TI trocion in axon of box office prics .7"Im.a.`ur".612, 11.1"p..nct -',!f --- aijy'Wai; Admissions old by proprietors

10 as .f.th.... unt for which similar occommoi ------

.0

,

.1 essublilhe R golden,. cabarets, am, 10 percent of todo Price, 50 Percent of such oicess. ..... .................

to] paid ters millions, samicek ...................

1.11111t.d Ind finilll.thi 20 Percent (if due, or f... ... In socess .1 $10 per year) .............

T

laps .

n

a

an .

fare,,.

ph,

.. to"' c-Ol lvdfi~*,., D

I ".

tillovion Wife mileage service, III percent; vilroesnd ~.n General tt.,I.ph,O, service. 10 Percent.. . ------- ...... ......... Tr,no,,,br

ff 01.

Oil.lq,n,, on - 41, Percent; repealed, effective AM, 1 1959

........... "

,X.a.1ldP,.q.ecIJ,, NO,. 16, 1 Percent.... Pjqpe7;,'3'=o' ffeclons A.,. 1. 1958 5 Use of safe depart Will, 10 percent-it,

,

asc

-

a

-of,

coal which 1, 4 cents per ton; repeated, a

d Ih .. . . .... ----- ........_ ......... Out.. .1 ar,eirrotibleoil. P

a -------------------

Sugar. approximately ~t cent par P ri~!.

------------------------------------------------- hI

I Diane t and lpecitil d met., fioths, 4 cent, par sell.. (in loso-O marihuana, total u.. -------------_..--------- ............................

firr"fics

41,689

552

422

127

39,7S4

791:097

33

25.246

115,39.73

9

233.928

ii. 4%1

12

903

1'13':012

1.153

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

Marihuana---_ .......

1.085 ----------- ------------- 68

Canioperaled amusement and gaming $10 ..it 1250 Par device, par y............. ............... .......... B-w mil alloys. pool tables, etc., 32D per a ey a, table, par Yen'..----------------- ...........--.........

Wis"er"

I

0cc!P:ijox.I to., $50 per year-,

Wageril, ....... 10 percent of amount wiiiied::::::::::: --- -------- Use A tax.itnvidl)Ighway motor vehicles weighing over 26,100, pounds. $3.00 Per 1,000 pounds per year

in' led

F

...... ...... _ ireaters transfer and occupational tax., rit.11

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

inchu, to...

20.253

4,897

531

1h) 4 1

7

54

findistrib.1 d deposit

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

................ J710 Un"pPlild collection ..............

---------_----

Frartivites on P Ily -.lot, 1~--- ..................... ...... .......

1962

(2)

124

V

770 5 2

16,696

735

I

159.319

42 327

1011~ 313

8.625

55

5.132,949

1,4712..1121

3.

322.381

2211:0112

1.30D.440

257.200

199.077

12U1

14

35

774

241:342

15': U,1

6.090

81,719

25,307

33,998

14.915

81413

4.667

421,163 6

9,394

176,023

114'11:11" 94

1.570,258

74,775

38,10D

582

304

193

35. WS

69,452

3155:,1515 2 1

492,912

49

262,5760

63

6,679

.96,636

105,178

I'm

1,040

49

19,617

4,184

580

141

7S 6

32'

66

3.117

98,351

87
ANNUAL REPORT as STATISTICAL TABLES

Table 4-Intermal revenue collections by principal sources, fiscal years 1940 through 1963

11. Uncineards of dollars)

11-1g, on. .,Tried

30

Total W nal

I.. or

collection$

(1)

Income and profits taxes

-

Corporation Indiddusl

Total Income and income

prefitstaxes. taxes a I

(2) (3) (4)

Eirplinnr.rt

t ... I

(5)

Units and

sitt turn

(6)

Alcohol

is... I

(7)

Tobacco ,

tax. I

(8)

hilmoteltan, ouse

Was

(9)

All the,

tax.

(10)

.........

1963--- ---

105,925 395 75 323 714 22 336 134 52,987 581 15 004 486 2 187 457 3 441 656 2 079 237 5,610 309 2 V8 536

1962 _ ........... ----- 99,440:839 71:945:305 21: 295: 711 50, fA9: 594 12:708:171 2:035:187 3:341:282 2:025:736 5,120:340 2: 264: 817 1 :

96

1

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

no ...................

94 4D] 036

91:774:803

67 917 941

67:125:126

21 764 940

22:179:414

46 153 001

44:945:711

121:11 1 5411

58, 29

1 3

.: 116,

626, 4928

3

1931: 111 7

3:21 14

1: . "1: 5117

93 D4

4;696 902

735:129

f

963 582

2: 004: 394

119 -------------------- 71 727 973 58 826 254 18 091 509 40 734 744 3 953 744 1 352 982 3,002 096 1 906 816 3 958 789 1 997 ?92

1958 --- -------------- -

79~9711~476 59:101:874 20: 5W 316 38~568:559 8:644:386 1:41D~925 2,946:461 1:734:021 3J74:135 2:166:675

1957 .................... 90 171 971 60 560 425 21 530 653 39 029 772 7 580 522

1

377 9" 2 973 195 1 174 050

'

1956 3 761 925 2 243 356

1955

. . .....

...

716 ~n112:119

.692

631: 1.

:914,826

2f: .:512

18,264,720

35:337:642

31,650,106

7

6:295:794 219

, 665

1: 171 :237

936,267

2:920:574

Z,742,840

:

1,57, 613 497 213 3:456:013 2

985,016

2:019:380

2,018, 166

1954

--------

69 919 991 54 36D 014 21 546 32

2

32 313 691 5 107 623 935,121 2,783,012 1.580,229 2,689,133 2 464 1159

1953

6

9:586:535 54:130:732

:

21:594 515 32:536:217 4:718:403 891.284 2,790,925 1,654,911 21862 798

2

:647 192

1952

1951 ........... ........

'

65 009 598 5

0:445:686

50 741 017

37:384:879

21 466:91

14:387 S609

29 274 107

22:997:309

4

464 264

1 :621

47 3

933, 147

72' '31

2 549 120

:546:908

1

565 162

1:380~396

2 3411:943

2:393.677

2. 507: 933

1950 : .......... 33,957,132 28,007,659 10,854,351 17.153,303 ' 3" i Is

5

, 644: .

2

70 :

6 227 219,202 1,328,464 1,036,053 2: 14: 951

1949

---- ------

41 41 121 11 1 111 1 553 669 1. 051 82Z 2 476 113 796 539 2 210 607 1 321 375 1 771 533 2 28D 1169

ma.-: ------

41:864:542 31: 172:

191

1

0:174:410 20:997:781 2:381:342 999:345 2:255:327

1

: 3W. 280 1:649:234 2: 206: 1123

1947 ......... 39 108 386 29 019 756 9 676 459 19 343 297 2 024 365 779 291 2 474 76

2

1 237 768 1 425 260

'

2 147

1

84

1946 .........

194S ....... 440:

60702: 097

3

8

388

351:02SB:133 61

, .

12:05253:602

1,

7

.113

18:704:536 9

, 1114, N1

1

: 700: 828

1.171),171

676:832

.1.5

2:526:16 5

2,309,966

1:

165:519

932,145

9222:5671

78 ,

11 2:421:1144 2

.292,103

1944

------

4.:,2 :7.0 3~:.,7

802 14 766 796 19 261 005 1 739 372 511,210 1.618,775 1,413 111,41 2 1 13 3 :111

1943 :::

22 ~71 3.. 1,

.8:

. us

9:

668~ 9% 6:629:932 1:499:705 447 496 1 423 646

7

923 85

74 6

"s

: 274:

1 48

942: --- 13: 047: 869 8,006,894

a

7" 023 3 262 900 1

'

185 362 432:540 1:048~517 78F,982 77t:902

"

2

1941 ...... 1 37' Its 3 71, P 1'

1

4 24 2:

0

53:469 1:417:655 925:856 407,058 820,056 698,077 617.373 4 D: 64

1940 .........

5: :452

340

2: 1

29,609 1,147,592 982,017 933,521 360,071 624.253 608,518 447,088 337, $92

Sea tax W..

Footnotes for tables 1-4

No,ra.-Calendar yew figums, by regions, districts, Stuff

arid other amm, for selected types of tarces, may be obtainedo"

from the Public Information Division, Internal Revenue

Service, Washington, D.C., 2~24. Floor stocks taxtes am m-

=

parately Only during the periods in which the

came am of significant amounts. Relatively small

amounts collected in subsequent periods am merged with

the amounts shown for the related elm of tax.

Less thato s5m.

Revised.

The receipts in the various States do not indicinte the

Federal tax burden of each, since in many itiminces, On

am collected in one State from residents of another State. "'

For ciscumple, withholding taxes reponed by cmployen

located near State lines may include substantial amounts

withheld from salaries of employees who reside, in neighb

I'

States.

!rIngludes tax on unrelated business income of extempt

orgarrizatione,

a 8 Btnning with fiecitl year 1957, the United Strata total is

dju.

to

"clude withheld individual income and corporiatio. succrdance, taxes transferred to the Government of Guam in

with the prOvisions of Public Law 63o, approved

Aug. 1, 1950 (64 Stat. 392). This adjummient mounted to

$3, 16,961 for z963-

4 Collections ofindividual income tax not withheld include

?ld-age =it disability insurance taxes on self-employment

income. Similarly, the collections of income tax withheld

am reported in combined ammint with old-age and dis.

ability insurance tarces on galaxies and wages. Estimated

separate nationial tounle for individual income mic and for

old-age and disability invurance tautes we shown in the

text table gn p. 9 and in table 4. Amounts

of

old-age and

disability inaturance tax collections, classified by States,

am

=

[I it by the Social Security Administration as a byof its wage and inmate record-keepiriF operations

and we published periodically in the Social Sectin.ty

Bul ctin.

liEffiective I` for taxable years beginning after ig6o, self.

empl. nent true and tirres riposed by the Federal loortiran= &nt~ibutions Act we applicable with respect to Guam

and

Am_eSamoa. Amounts of truch taxes collected inGO. and American Samoa arm combined with sinnil,

88

tarces reported for Office of International Operations—

Other.

Includes railroad employment compensation tax and

tax on railroad employee reEmsentritiITax payments made to =its, under the depositary mceipts system, are included in internal rewmic collections

for the period in which the depositary receipts am issued.

Howcwr, such payments we not classified by internal

revenue districts (nor by tax subcIasses to which excise tax

payments relate) until the dc"itary receipts are received

in internal mvenne offices with tax returns. Accordingly,

the items shown as "Undistributed depositary receipts"

represent the mount of depositary receipts issued, less the

amount of depositury receipts received with returris and

distributed by district and tax class.

I Amounts of auces collected on Puerto RIO

.

d us

coming into the United States are covered into

c Trr~,=

y

of Puerto Rim under the Provisions of 00C. 7652(a)(3) Of

the Internal Revenue Code of 1954. Such amounts are

included in overall collections results (tables I thrOugh 4),

beginning with 1955, and arm shown separately in table 7.

9 Includes occupational tax on manufacturers of stills,

rec,tifiers, wholormle liquor dealers, retail dealers in liquor

or medicinal spirits, =it ambeverage manufacturers of

spirits.

30Includes wizums, penalties, etc., and tax on stills or

condensers manufactured.

11

Includes Occupational truics on wholesale and retail

dealers in wines or in wines and beer.

12 Includes Occupational taxes on brewers and wholmatand retail beer dealers.

a Includes taxies on cigarette papers and tuba, court finex,

penalties, and taxes on leaf tobacco sold or removed in

violation of froc. 5731, Internal Revenue Code.

]I Includes taxes on pintole and mvolv-

'

h n ph

records; musical

inse"O'nes; "porting

d.; I= -it,,

execlas, m.; business and store cameras, lenses,

film, and projectors; electric light bulbs and tubcs; firearms,

shells, and cartridges; mochrunical pencils, pers, and lighten;

-it match..

Is Includes uunis on ticket brokers' sales, on leaw of box"

or seats, and on admissions sold by proprietors in excess of

established prices, sis well as general admissions tax.

ANNUAL REPORT se STATISTICAL TABLES

Footnotes for luables, 1-4-Continued

I.Transportattion *of persons: Rate 10 percent; =pealed,

effective November 16, 1962, except on air transportation

which-was reduced to 5 Pereent.

17 Includes rmfion of property and oil by

pipeline (mP=,'Y.7.vrAugust 1, .958); adulterated

-it Process or renovated butter, filled clicese, and imported

adulterated and butter and olcomangarine; firearrots transfer;

ocenpational taxes.

Is Corporation income tax rat": First $251om of net

inexuric, normal tins Of 30 percent; net income in carece, of

325,000, combined normal tax and ur= Of 52 percent.

Normal tax and surtax rat" also apply to net income

derived by certain exempt organizations from unrelated

trade or burrincie.

19 Rates of tax arc as follows:

Individual income tax: Graduated rates fir-a 20 percent on first $2,wo of net income in_excess of exemp.

tions to 9z percent on mount over 42oo,oco.

Old-age and disability insurance mica on self-employment taxable income, 5.4 percent for trucable year

1963, and 4.7 percent for taxable year 1 962.

as Rates of nor am as follows:

Income tax withheld: 18 percent on wages in exceso of

O=tion" "it disability insurance truxes no salaries and

wages: Employers' and employees, tax each 3% percent beginning January j, 1963, 3Ys pment for 1 962,

and 3 percent for ig6i, both imposed on taxable

portion of wages.

21 Collected by Customa IiTinnmig October r, ~96,, as

uthorimd by Part 275.62 o Title 26, Code of Federal

Regulationts. Prior to October 1, 1961, Customs collections

were divided into (j) those paid direct to the U.S. Treasury

Department and (2) those cleared through the various Internal Revenue Service district offices. Collections in the

first insumm, which were relatively small, were included in

domestic chum E cigars. In the second instance they were

707-1510 -

-

mported in the applicable classes of tolmem, tax as part of

the districts' collection dam.

" Isomm of stock: t o cents per S 3 no or maj.

or fraction

thereof of actual value,

exceept

Unit anuch Me shall be 4 cents

per 3 1 m ifissued after April 8, 1 96o, by a corporation which

qualities as a regulated investment company or a real estate

investment

trust. Issues of bonds: i i cents per 3 1 on, face

value. Trainsfen of stock: 4 cents per Sim or major frac- tion thereof of actual value; transfers of bonds, 5 cents per

Sim face value. Foreign insurance policies: I cent or 4 certs, per $I of premium. Deeds of conveyerice: 81w to

55m, 55 cents; each additional 35m or fraction themof,

55iscru"ed to allocate unapplied collections pending as of

June 3o,

1

962.

In the case of certain r=ctracks, the following rates apply:

Admissiorts: i cent for each 5 cents of amount paid.

Ticket broken' sales: 2o percent of excess charges.

Lcirec, of boxes or seats: 20 percent.

ax Namotics, 1 cent per murce; narcotics order blank&,

Si W hundred. Marihuana, St per ounce; marihuana

order blainks, 2 cents each. Amounts shown also include

occupational taxes levied on maridxicturcm deelers, and

practitioners. For classes and rates of occ,upational tax"

a- table 14.

as Adulterated butter: in cents per pound. Process or

renovated butter: Y, cent per pound. Domestic filled

cheese: 1 cmt per pound Imponed filled chme; 8 cents

fi~r pound. Imported ri~ulterxxwd buffer and

rine: 15 cents per pound. Occupational taxes 'I-- am :%

on manufacturcrif or dealcra in these products and am

included in the amounts shown. 27 Trarisfers; of marchineguirs, ahore-barreled firecirrurs,

silencers, etc., $2oo each; certain gum with combination shotgun and rifle barrels, and other special types of fireweris,

~5 each. Occupational taxes am levied on manufacturers, importens, or dealers in firearms am] arc included in the

mounts shown.

89
ANNUAL REPORT 0 STATISTICAL TABLES

Table 5.-Intemal revenue ropfunch including interesi

[In thousands ofdollan)

Individual incom.

I t re ion districts Stairs and other -I-- Corporation

employment loan

spares revenue g , , .

Total I.... Estate Gift E.O.

le districts indicated in parenthooli: (Stairs represented by sinf

Expands.

behill for other St. .shown at bottom of table) prepay-

.art,

Other

(2) (3) (4) (5) (6) (7)

Unl,W Soolowe, -11 --------------------------- -------- 6ftp442 suo saa- j so mom streon; ne on 1. 3" 226, arc

A~.. volow,

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

41, W .. as

Alint -- - -.....

87~309 5,903 74:07 1 299 24 20 4, 70

73 587

441~606

10,

23

2 7768

~

GO 0

"

' 1

~

997

801

61

23

9

(*)

SIV

991

Gre-thi o it e

' *

14 17

5,

,

"1

all111 1. 258 4

5.0

Q

Of

hoC

J.1k.n. :: :::::

ii

4W

158 481

1.

10 492

342

1..

a.,

311

231

S:11

11

a

1 41181 ---------

40

1 349 i

-

Jaksorni glodd.) ...

N.Shvill......

an..-) 78.049

,

4,781

as:

462

:

245

,

169 4 2,314

.__ retain ------------- M,M

7

' ' 1

32,939is

of

241:1 .1 1

736

'674

247

32

1

G.sta

31:3

Aiu

usual,

8" 203 :237 I~ 84, 177.603 4,036 494 38 3,224

.--At)

6

" '7

1

2 " ago

269 95

1

260

Harrier ---- I-No. nl-N...-m

PoftrnoutK::::::,::::,:--:- ailure)--------------

97: 675

20,646

6,2 92

263

83 959

17~562

3,767

709

822

19

1

1 2

Rhode

f

P-idieno

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

Rhode 1. and) ------------ --- 31,791 IG2 27,724 752 82 1 130

-

' ' ' Us '

2, in

-- -

338:2 11

296 569

67:626

31 83,

249:

246 238

10:278

7 928

742

796

36

23

9. B48

1 ,

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

Mi anaukee . . .. ................

,

129,757

,

5

I

" 11

LOS,

372

,

2 611 412 2 5 M

Springfield ------------------- (Sens (b) below). -------------- 79,319 5. 3 8 E. 200

1:

872 162 7 8,761

commatl noul................ -- ----

1~ -------- '13"2'197

m

977

"e" .0

295

"n`Lf~

2 355 433 331

-6

Cincinnati-

,

Cleveland ::::::::::::::::: R.- Ill p:1.'wL -----------

.s. 505

2S.944 ' 199,252

,

~-'112

305

7 I'S

.-.. -

Indiana 11------------------ (India 3 072

' '

10,214

...

31 2,931 443 3 .,LT.

Louisville- W (Kentud 67:079

7

3, 98

5

57: 56 208 375 129 3,013

kl,b

Rr t R1 1V2r!l I

11:5413 IS

Rich on i . .......... r1 1 454 39' NO1 10337:0'3051 3 51B39 16111 1 3 51651'

:,-

,

.1' G"

on

,

I'm `14

,

--- (No" 28 958

1 5

"

2. o

1'

b 397 58 31;

Austin-.--

D M: 11 1

3:10

IN

40, 1 :4 11

18 881

~

12 .3

106 081

7,303

9 67

7

490

743

12

253

Go

. ...... '3p 7

Ark ors.)... ... ------ 35,072

, 553

1, 30:930

1,,

296 33 1

9~

i 1:26

New

Or'. Lounin.......... ---------- 1113 1 13

5

71 221 3,065 IS Z3,

Oklahoma C ity............... Oklahoma)----

,56

74,

5:

542 58:179 8,94D

1

11

9

1 675

--A

C 17 71-- ---------------- --6

* *

SM2 115-6M92 m47"773

13, 294

1 16

4,412

151

601 20, at

71b W1

Brookkr,yn- - -------------

:o .b: -------- - - - S .

15 51

1

,

14

"

22W,

5`9

.

3 '12 I'D11

5 6,31j! -

Buff.lo--

:::

::: -------- - - - .. b

Manhattan. b

9

4:309

31 11

6 :

14

715

1 1 3 1

768

1 73,.7

1

1: 841

12 04D

6

2,343

as1

3fil (S:: b:

Syro--: 59:995

, 2 :4 ,E

1,9

1:

148 159 5 2, MI

a.." .I- ....11 .............. ---------

. . . . .

Ik no A491 us Xan ip- 53 Is.,

Alb.ndson.. ......... ...... outh Dakota)----------------

chat

C

VVY.min l 1

. . - ---

l,

231

11,111

0

544

5 707

47

11,

926

746

l 64

1

:

7

686

799

634

72

11

'1

6

1.) 27

"

3

997

2 324'

l,

o ored 0 .

D .. ----------- ---

Do, hipm Imv.) ------------ - ---------

69,38

71 111

,

0

6,902

'0

1,

011

Z

Z 113 1 2S

1 10:

North Dalkint ..

6~1 61

1

427

1

1

, Wit 6

22 5 7 4,031

No- Im.

Omaha ............. ..... ....

S b l

1,119

38.148

S

4,393

2,974

9 9

44,789 28,859

68 1

212

1 143

152

56

243

7

6

4 406

3:940

S . Louis.. ............... ea (c) e -).- 8 755

SI. Paul---- All r-IJ).... J19B.' 052M

99D

10 :9026

105:82111 3 :3

19

2DO I

,

7

Wichita----- ................. 62.112 3,042 51.679 1

1,

866 320 1

:

5 799

Ph=h.

vinal-

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

1U 1 7 " fn'"o 1' T

ell

3 `13

it

it ln

1

39O

1 1 1 11

12, 004

1 176

l28,262

60,788

4, 236 127

411

p 7 4 gas

: .

Newark ............... it

1, ,:~ 61 2

23: 34 147.967 3, 87

Big

6 to, 61

7 1

: ':!*

17,141 42 411 174.117 5,030 604 4 5.

015

S 9 b .. 131 R7

0

L :739 114

984 3,333 681

*

1,089

Sorlogn .. ~*a

"

Do LD ...............

Wilinington- linvrai40: CA 016.475

2.005

4,479

36:

11,133 -8

724

515

41

14

( )

--------

1,232

real................ .... - ... L 334

257, .2 in. 152

a'..- N-' -

lC

as$

Anchorage------------- ----- (Alaska)......................

101" 'Id l.) ........... -........

9089

20

127 1 ,

74'

7J 77

's 11 1

32

672 53

.........

----------

143

3

e

........ 18,401 740 15: 41 832 29 1

os I (a) WiW.

M

1 4

5'65.079 "

.194

43 071

24,394

501,404

956

16,002

38

S 68

7

144 3,53 -90

Phoenix. ...... ------ --- Arizona) 49 111 2: 7

6' " 0 '

53 580

son).

NorPortland -....

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

,.:

16'al03

88

,

I'D 3

933

: 121

5514 71

1

75

4"

61

n

7 IDS

Soft We fly '3

=

34

a

I5

1.304 365

3 2:

795 14 2 379

San Fra :::::::::::::::: 348:C95 58,378 273,093 9,665 739 13 7 2 11

Seen I ----------- -- ....... Wingtom) -----------------

ealia-verwrovenall . ....... ........

110,09

1

2

8,970

in

95.064

"

age

4,042

1

308

T

1, 1:

610

Puerto Rim.......................... I2

other- -------

4 :636

28,005

6

965

4:350

23,243

2 8

3,271

.... .

520

I

----

onve. 1,3SO I I j I 1

I

I

T( lots for Suter not shown above

I I 4 1 111. "1 774.496 24 667 1, 606 157 10,797

lifilli

~ SI0 944

72, 312,881

:

12 149 904 43

1

Missouri --- 4 374 113

1

77

N3

13,161

t

he.or Y

M3 2 7

.1 12

: 110

26

175,058

8

20 :755

581,896

5

5:53

19,294

1.257

4,412

5

60 20 56'2

'

Ohio- .... 31 D2

1 7'

1

36.921

N7 9 ' 67

37

73

333

9~

1-1 1

nney

: 9

407

IS 641,171 31":5 789 :08

9

7 E326 49 3

36

k)

-.

Te -............ 333,300 79.339 228,074 16.985 1,223 266 _7 413

refloc Inc'"es ptions. In I

- Fl,.-W=2.h`,".`d`d'' d."d-tmimbumwmerts; from the Federal Old-Afe and Sumi-rd Federal Disability Insurance TxttFgmfa..p.nfi.s WS139.425,0110

963 ad S141,663.000 In 1962: from the H y Trust Fund4mounting to S126,3 9,000 in 1963 and $131,303.000 in 1962; and

I

...fint nue a nomployment Trust Fuld

to $3,097,DDO In

Xw adj 19

d tA."I

Iran.

.662 Unit, iV!r9,6b3,:n,,k, fti~firs`$2,799?000. d In -L-than M.

90

ANNUAL REPORT o STATISTICAL TABLES

Table 6-Number of returns filed, by internal revenue regions, districh, States, and other areas

internal revenue regions, districts, Stores, and other

areas

represented total, by single districts indicated in As on.

for other States shown at bottom of table)

"I- a.----~--------------------

Allaw - ---------------- ............ ........

itb1"me-)-------------

Coldrob............... South

Greensboro ..........

N 'h

Go n.i:::::::: ...

Lackso...........

jacksonvill -------

Namill............ - Tom-.) --------------

August&

Boston---------- ---------

'u""'o'

--.

H.I*rd.-: ----- Connecticut)......

Portsmouth ----------- No. Hampshire) ---

Floridan ce........... 11fivid. Island) ------------

coil- iver- ------- --------- of cl~.bas.

milleauk.: W.-Ini,-------------- Springfield (so. (b) below)-----------

III b.=1 ............

Lriumvill.-

k

P : : ---- ::: ~W,e'll'Icki.i.) .......... plarrow Ric`h.*r2d'-": -------- . lismis) -----------------

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

Austin.. Na*iM~b'h`10o)--- h -) ----------- ---

Gail

Litt

New Orleans

Oklahoma Ciii::::::::

a- 1.k City vaIans....... ........

All"

Hill s:: 1: 121 t

Buff, w Wol ttl.w)

s- below):::::::.-,-::

owasher -own.'....- -----------

Aberdeen ---------- - (South Dakota)

Cl*,:,nn,-.:::: --- :::-

W in '-

D .. ..

ICu`1*.1.IJ"o)) .::::::

D. m.i..............

. 10=------iS (c)

be

":.b,("k S ')

b`.k.

I

Lou

St. P of ----------- fifill-W-- ----- Wi,hitu------- Rmlal)~ --- ~: .... ......

slower I---------------------------------

Camillo iSM.-.1y~enbeilld D.C.)------

No. itd) belciw~: w .... ---------- Phil I bejmv~.. Pittel, mv

:::::::: Scr ((SS.-. I..) bt

W .........

'wilmmolon.-------- (Dolaware)-.- ----------

A'-"A- rch

Alm He,

Was

Idaho) Dr. -----------------

Non lulu ------ ...

Wall)

Los A

Phu.nir!".: ~AAnt( -n1i"`-W)

Portland (Dje,

R.

S n Frnio':--.--- ::- isu-'s, S-Ittl-.---- ------- Washington).-,

se-noreekiluej

ofirerfil, Ron,....... -------------

r--------- - ...... ---------------------

i'b)) II'lln.i.,

I

Ohl. New York

-

--------- -

emnlyi;i~l------

))) T'exas- ------- - -----

Total

(1)

$',anirr

"'E 'n"c" 760, 791

1,296.907

2,10. "':001

2 742,792

78 98

6625:9380

IN: "a113

31080,

111

1.

"':0" 579 SM

375,404

499,339

it Ads. are

'

242,271

3: 411

2,233 "Ul

1, 527, G26

it' 2,012:2.1

3, poll, 258

21: &3 2'17

":

GO

14

799,907

1,974,737

A.M

M2

2,596.792

1,117 7,1:141

1.350,144 1,180.

091

1

". .4p:3I2 M "

1:3'76: 7'331

3,953,391

959,618

.57

745

1,039 ' 1315'20

L'413

1

13

333:756

I. ":.3 M11

1,323,746

1.847.778

1,206.914

as ... sal

2.455,249

1,030,059

2,645.446 3,

204 784

2

,

024

794:651252

268,266

ax,m.m

35. 213

386,933

5,5

'0:0

3

76 1"025

691,797

M2 ': "'401

460.353

I "

733

1: 1.3:

59S

an. "I

174,952

264,555

individual

in... Us I

(2)

$2. an, 213

13

'03

,2

':.

0

7 5

1, 31D, 100

973

66

1:0",0181

4,107. ill

2,01, M:IN3

I'D132,818

013,930 242,420

328.696

2,935,920 "

6`3

"

1,

420: 741

984,960

T'sai'm

1:12,357 , 019

1,595:15373

1171: '13

525 906

321,610

&,asal

1, 609: NO71

114

1

4.907

,81)

,

663

856 703

745:

1

58

6 L.: TV

928:411 19,

2,050,922 639,599

.8~595 an 1"

651:'U 1" 5"3.

1

20943:209

.72 520

: 473

a

I

,21f:

361~2

754,393

a. 1624.785 in""

669,94

1,710,815

2 ~1 51 1: GO1

532,033 940

163,616

1114"."Is

66,694

217,381

232.597

3 7.4 M74D

427113

638

1

7

139,007

30?. 141

2

.

1"16:.. 4" 111

Sul 69. 03

$02

231,571

Corpo.

Wum

income tax

(3)

1, M, an

14"

754

11:61"0 31

24,:,216

,3

51 592

14: 60

102, IGS

'

297

53:

2,181 a24

'

5:

2IN

9. M

in, 1.

58,255

3 331

9:

9.

28

11.522

in' 21,298

Q: 26 "'34

11:a 711. 7.

2D, 603

A gas

4.232

27,212 2.. .7,

399

1.

1..856 117

"':857 L2

72:25'1 18

4

131. 1121

1013H

113: Its

2.535

13,910

1

3:011

3

IS

1 0"8 101

21,L:10.11

ID'OS4

355, "1

30,599

58:461 16 ito

31

..

Is:

3"

1:

368

5

717

Isr, us

1,431

3,993

4,902

6 M

I~1:.113I

2:

-1

6

3419: I~l .33 ~12

1'7015

1,694

Partner.

ship

(4)

$TO,-

2"' 14,935 10,

7.3167"

18,655

25: a 69023

17.941

as..$

3,330

1

112

S: 2

2: 21214

2

6

2.792

ill

4 3: 734

40,726

,

836

0:

7

19 .2

101, .3

14.037

241: 72'

2 741

194

17:637 8

15, D39

10,591

4.291

30,740

15:

'

a

1112

12,528

11,683

1"8:3M"2

N11: 2"IDO

42.50

9,231

3

114: 010574

1 15

121

2:3'0025

12 72

22:4'42

13,910

1*11 'S.997112

213: 91131

23.369

20,233

71: 694

532

173

1,453 376

4,731

5,641

3

'4

SO:

334

7

.4: 1325'

'

~ 64 7

I

US

I.

I_

17

,

Oil

1.5

4

161

Totils for States not shown above

2 1,:412

3:65

505

10. 835, 442

5,053.523

':

023.111

4 953,932

6 171:

3: "1

.

790

12: 320: "GN2

6,659,425

3.361,510

4 003 975

3:024~41)4

113:

"'

IS

777

3'

07

74: 57?

245,778

61,634

54 504

53:222

...:

834

13 561

24,492

1.32: 527

31,7.2 -2

51 296

66:502

Dollarsfirms of

.,limited

tax and .11

other

Is...

(5)

7. 430. .12

2

3.241

6 813

48 138

11

1'04

202: 37 Go 85'7

84,453

W. se.

38.618

271~,711 14 71

IS': 27 5'3 612

33,125

3...75: 4 06

nli. Oil

112:241

is 992

"I"s' 163,

226.749 375

161:6111 &3 9

142.550

16,688

M.973

Ill,' 11,431

667

1

7,

328

7'.

237

..

938

77,

467

66.836

1'04277

,

105 659

77

513,

190

60,

5D9

17.988

92.

134,181

J5.568

72,480

59

95:033' "

29 397

96:505

a., on

182,353

2f.: 1 '216

268,292

148.337

54 432

24: 3S4

2"'- 3,475

2

1.

24: 255

159

29 387

459,418

49,776

77,725

149:

2

4

311:..

Its 512

is. us

220

Z2, 466

""

114

.11'

298

T'

513

2.1,

1.023,871 160

390,124

471 061

336:995

Employment

tax.,

(6)

21. in. 73S

Z' :7W5, M664

322 84

255.595

511,249

198,740

113 757

390,

939

1~

2"' 120,530..

114,

57.279 9"

314f: 8111

.1

69

98.057

""

2

797: "170

777.694

4

52

949

322: 329

2.

'"

in

397: 56,740 IGD

470 311:9.5111

429,115 172 202

2.

%95.777 T

624,582

603,909

207 990

316

442

274:985

2, Aid. an

191

694:191634

253.898

1 ,

079,118

195.931

2. 117, In

92,964

241":685519

350,862

92,962

217,544

.

12

3.. :

091

DO

378.908

268,372

Z.M,m

514,266

223,054

545,539

640,246

395,398

151: D65

64 058

Z. ..1, 719

19,390

83,125

89,556

64.267

1,088,946 1

49,108

Z22,565

41:8111 86 75

783.155

327, 587

no. 17.

114 475

6:

.03

1 :aIN: I"491

517,63'.

768 593

2,

4

14:997

993.900

186

709

1 Z28~ 4 91

Estate

tax

(7)

115

549

494

1,154

3 7

3.

2

7677'

S'XO

2,115 157

321

371

".70

32:

Z27

403

:932

1: 0%

875

1.401

084

am

198

!1197

333

452

960

1~038

3,340

':

351

3 139

947

"I

349

3ifi '73

279

645

116 99,

644 I"

1,387

*I1 Us

680

1

039

2 3D9

2. 107

1.411 ~00

206

1Z Us

19

474

162

5,111 4~9

773 1

7147

41:123

III

3

1,881

1~ 3

1

3

74.

1,644

93: 7

314'

3,729

4:15

3 013

I Includes 80,274 forms 104D B, N B, N BA, PR, and VI which are included in "All other individual and fiduciary " returns In the table on p. 13.

Gift

to.

(8)

losawo

191W

1.768

711

104,20

498

3

684

1

094

11.200 '92

3,988

196

312'

394

12.."

5,583

3,393

2

2

1: 3933'

a., in

2:

'

1

585

2,373

gal

1, 1713'

363

2:711 2 927

1

73

13,

1,536

'112

3,756

1;

396

7 341

703

16,734

355

304

338

662

86, 131

1,413

1

381

1:028

2,064

Ll, I"

Z 355

942

2,741

2,755 1. 534 6

375`2

IL 7"

35

575

331

3,131 67,

1,414 1

47070

4,079

1.090

in5

206

1: "16,

2 112

3:

683

13, 9DS

4,591

'

901

1 :

6

IS

Who

to..

(9)

.'asa'asli

,

3"

,9:507

55 856

46: 699

110:3 &6'697 47 14

71,966 230

in. 765

2397:680

622

99

57 942

5:345

16 172

.Man

122. 401

171., 13 811

65.341 So

457G: an

387

2' ,2:492Us

56.969

40,994

63, U5

.". no

19,904

13'

,,4:7'90"

41:542 'a

57,441 -

'"19:379' as

too, M4

55.172

125,452 4

2.540

.57. an

22,358

14.112

41

7 79

,517: ISS

45,677 515

52.506

81. 6"

60.229

4". ",

93,214

40,&U

94,127

120.64

1

84.271

":

IN

1 408

...no

6,328

19 431

29:029

15.266

174 793

30: 913

47.956

":

541

15524 952

106

070 'as

5

158

83

3"111: '712

9'

12

L21: 961

363.247

199.273

246 ~820

35 647

91
ANNUAL REPORT so STATISTICAL TABLES

Table 7-4ithannal mronus, tax collected in Pueft Rim

on manufactured products cam ng into the United Sirres,

by objects of formation

lln thousands of dollars]

objects of auction

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

Dis -------- ........... Win,[tied birth rectificartiontax_...........

':-----------------------

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

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

Close c B ----------- ........

Chen C _ ....... ...........:

C1-D ................. ... .. ....

CIS.., Cis" G ......... __--------

Mail ..................

....

Cl

For. ............ %Zil---------------------- ---- Manufactured tab- (Chov4n&. arooking, andenuff) -------- -----

44 465

36,524 979

....

V)

4677

Z 869 1,410

.....1 7

.....

--------- V)

I",

~33,328

211'424 743

30

4SS 1

7

2,076 1,503

110

----------

-I-than $SDD.

ftor-Amounta of tam collected In p-tm Rim on bobaTTand liquar pmmbfactures coming into the United States are, cannedho'lo t.h~-'ImanrnYu: rd .~(3) of I Int Rne Rim under the provisions of section 7652 ':'of

1954 S ch am unts are Included In event collections results (tables I through

4), bilginsing with 1955.

Table S.-Fitablishments qualified to engage in.th, pno

ion, distribution, storage, a, we of oic hol

dallwCtivall. liquors

Class of establishment

Distilled spirits PI nts:

=at ...bar) -------- ------------

P.dbctxn ...................

INBottling ... hututill; in W__ ... ..........

Donatu -------- Tim

D.n.bbred Deal.. R-l""'i and1. 'd b'tt!' - parb .1. ,us ...tcj: m'_h"

.m

mdfly do and denatured

Us.. iiii,

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

-_-

Room [ft.. abo%mrit, of bt. r0inflers. etc., of Specially denatured to

r

I .

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

das............................

Be.,: 111n.w. wirtars: Bandar! win. H.....----------

T.xp.ld nine burning humnu_ ........

Vi.,p,: Vin. a, famfies .1, 1 nparlift p ........

8%1" import. cleff.

to

b.'snal.

What-[. dealers J. be.,................ Retail dealers In lique......... ......_:::::::: oth.,!t.11 R thed.. In bamr.... ____..... ........

I&n.f.cumeno of nonpersons. products (drawback). I'm t-fla"T concentrate plants.. .... Butil. crumattictur................

As it June 3D1963

360

IIA26759

48 14425

42

3.685

1:1.22 7

76

198

441 1034

3 772 7 133

282:351 145,051

918 14607

92

1962

362

112

259 56

45 H921

43

3,125

1.128 7.'IG

213

458 1064

3 I&E 7 1.93 276 1150 145,142

042

'111

Table 9.--Edablishnmts qualified to handle tobacco materials, at to engage In the production or ampottatiose of

tobacco products and cigarette papers and tubes

clea.fastablishnnent

1141hufacto .0tobaccopeoducbi ---------------- Manutocturans bobx~cbI dMVoNrt18 to fixus are and tubn-. ----------

Deal,. in

_p

Tobsom export unnehoutes ------------ ------------------------ ------------

AxaIJ ... 30-

1963

SD5 I 4

2,1 2

121

1962

ANNUAL REPORT go STATISTICAL TABLES

Table I I-Perinih for operations relatfing to alcoholic beverages under the Federal Alcohol Administration Act

Table 10-Perroults, minting to distilled spirits under Chapter

51, Internal R"enue Code, 1954

Section

1. 6171, Section 5271. I.R. Code P Code

status T.ta Deals. ....fDistilled In -

siollits plants

J.g

ly do- xalb.d pecially do.. does. ecially x-ft. alcohol wred tured an't

alcohol turn

(1) (2) (3) 4) 5) S)

jn.fftiwyi,i962._ 11,439 203 3 ,698 3 7, 67

sued ------ 532 33 1

66 2

2

30

Terminated, total ..... 558 27 2 04 21

Revoked ------ I .... - - ------ 1

othenel" terculL

:

-fint------------ 557 27 2

_F

In.ftt.1-30,1963 11 Q3 '0 2

i,_

Amended ----------- 512 36

S

5

.,

G od Distilled spirits plants i Wine producers in. total and blenders mport.. holesale. Status Total I Distillers arehousing

and bottling ectifiers md.r.

(1) (2) (3) 4) 5) 6) 7) ) )

In affect July 1 1962 ---------------- -13 750 06 09 12 47 8 0 723 1 07 x I ...d-. ----- .... ......... --------------1: 420 1 6 4 9 3

6

1

, M

Terminated. total---------------------- __ 1,541 62 1 4 9 3 0 8 258

R-kd--

3 ------- - -------- - -------- - ------- ,

. ----- 1 7 Quarnel. 533 6 i 4 5 7 251

1.~J. 3D.1963----- `! =13.629

- =

17 1 6

-

.06

-

0 9105 Amended-- -------- -----

I

1.432. 71 . .........

5 - 2 6

1

3

Excludes fermits for Connotes manuf cul n V.1,warehoum since such establishments are net re%rml to quality as distilled spirits Plana. a r'(0 2 Colqmn don not represent the such .1 (4 d

(5) since one permit may cover more than one ac Wity. Rownstal.

Table 12-Permits relating to tobacco fmcf., chapter 52,

Internal Rtvenue Code, 1954

Ahnobf.c. Export

Status Total tureve of

tubearehouse pruprift. pmducts

(1) (2) (3)

In effect July 1, 1962 ...... 671 553 18 Issued---------_-- ------ ...... 70 39 9

T,-i,,I*d, 1,14--------------------- -116 87 9 Revoked......... ....... ------- Otlurwise t.nairead 115- --------- 8

In effect Jun 1113 -_------------- U' 633 05 A...d.d--- 71 54 7

Table 13-Labol activity under Federal Alcohol Adminis.

tration Act

Type of label

Grand local ....... ........

Distilled spirits. tuml_ ...........

Domestic -------

Imported

Doimported

Malt beverages. total-......

Domestic:. ................. Imported .......

ApplIcatin acted upon

Total

(1)

46.949

19.943

77 281

25, D9D

7:411 17 679

1,916

1.485

431

C.1fificam I....d

App,...1.

(2)

Exnxrp U(m3

(3)

45.819

19,486

.7: J17

24,457

71098 17.359

1,876

1,466 41D

222

9

L13

213

DIsap P.V.i

(4)

908

420

100 320

40

1921

93
ANNUAL REPORT 0 STATISTICAL TABLES

Table 14.-Number of occupational tax stamps issued, covering Fiscal year 1963, or Portion thereof, by class of tax and by

internal revenue regions, districts, and States

Distilled spirits

Total R. be. Retail deal.. Mar6facturers of nor.

morb., beverage products

Internal revenue rell-, districte, and States of Pa. M.".. who

(St=,ap.,.nt.d by login district. indicated in P-o Borst tax tamp, lecturers at it.

,

Less

the.

20,000

proof

sale

dealers Retail At MediciNot as.

esding

Net

ceading M re ,,

totals for other States Shown at bottom of table) i... ad &55 20.000 gallons $255 on-]-..

I

a rV, nal 25 50 than 50

Proof more. $54 S spirits

'

gallon

'

gallon

'

gallons

allom, S

110

;22D

354 $25 $50 $100

(1) (2) (3) (4) (5) (6) (7) (a) (9) (10) (11)

United states. tate, -------- -.---------- - 1. 10,W In 2~ M Mson eas L, ass 72 gy no

-------

'

Its.812 ....

b- - -

91

A 1. fdi; 41iK: 14.811 - ----- 32 394 ::: : : -----... 2 2 12

l gn':1Imli; .

G h line)

10,039

13 853

13

4

62

977

upp :::::::: 3 1 1I

..

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

G bo (Nort~ r lies)

,

16 799 - -- -------- 45 310 --------

......

--

6 3 11 reens e .... ro.--- ------- (Mx ,2ip) -,

11,262

--------

--------

-----

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

23

105

1

-------- ------ I .... :1 I"o'.px :::::::

k.

is 7 7

43

37

:

4

4 49

727

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

I

-------- 3 .........

V

its

SaxwelahvIll ass -- --------

---------

waswo:.: .............. .................- ::-::

i e)

,

45,02

6 302

------

---- ii 17D

1

JC

us

442

------ i- ...... ------ .

or

~

(Ma n

(Macbc~Yzjj~~j.:::::-------

,

28,007

--.

4 1 1 113 7.570 :::::::: ---- - ------ 6

7

4

npsmj)~,; ------- -------

c

3,D64

It 093

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

1

--- ---

3

1

12

561

1 113

--------

1

---- I

I

He pan , ........ ........

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

Porn,rff w

i4:31

267

:::::::: ---- .

1

221

,

1 $41

781

........

1

:::::_

4D

-

3

::::::::

1

3~

1

P met loul.

....

5

jai, gair 47

4 '

1

1

1 7

1

4%

111

,

".15 111

113

U

31`

2

is

1

96 1

971 3 4

2 1

V

,

I., 1

4

11 12

2 2 33

W a ..... :

I

44,313 92 13,576 1 35D

I 1 10

Springfield ------------ S.. (b) below). .... ....... 18,876 2 74 5,161 .... . 5 2 -----

struestj review--------- ......... I

-

1 It

~' M

..

u J

c

23~018

39 722

8

1 1

2

1

137

198

6, 55

12,445

13

8

---- ---

3 74

21

4

4

---------- 17

Indianapolis-. --- ..... India.)-------------------

,

24.993 ...... 1 3 21 5,457 ----- -------- -------

i L. 1,

tai-t- )

g ; 1.

3 16 79

2 021 2D I 3

Parrl.rtlu ~.r ,~

~ ,2

648

:

If 1 1 1

,wasRichmond ------- ----- kill ---------

realeas........ .......

. ... ...

19,260

'' ' --

a

-

363 :: ::::: 2 --------

I

as

Il

A

W .

~S w h ..b %)

4, 603

31 14

33

3

3~73 1',

so

------ j- I ----- ---

~ ~ .

D. bbI.wL:::::

1~

9 3 2 ------ ------ 21

'

1,659 4 2 1 ....)

Little R A%

l

is1: 3'14 -::::::: ------ F :::::::: 1'62

741

5 232

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

N. Louturm.)

Oklaboma) --------------- 13,466 --- -------- -------- is

,

923

..... .

1

k Cl~ w ......... ......

saw yw

7 r . 11~21111 2; 2 4 154 n, M M 1 12 a"

aAlban S:: --------

k

16 ~

114

11 771

11

1

1

1

2

10

36

4,970

7.555

18

14

------

1

-

4

--------

2

10

56

or

,*

2,:

18 5,363 -------- -------- 3 1 14

M.oh.1t..... I b::. 11 11, 1 1 71 7 31 3 1

Syracuse. --- sea below)W

1,:835

I

.

-

13 4:

086

1

a

0-.-I-

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

utm & 1 3 ne, III IN gas ass 5 7 Is

Aberdeen. :::: ~ ......... )

Cheyenne-:: gwy-.: f-~

573

2 97

737

......

" ::::::::

113

18

131

689

G in -------- 2 754 4 5 7

am"

5 329

------ .

-

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

3

,

1

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

-

......

1k111

,

1.11

--

ke 1 .,.W 038

1

1

1,427 ------

-

1 2

'' '6 1 ! ---

0

mah Nebraska) --------------

:

9,834

1 93 ------

:

1

-...

:

::::::::

1

is

23

1 :

175

1 .3

69

31

7

3

------ . 1

5

2

30

S

1-(1) 11ID*

P

Aloperot.)

.

St. 11aul1 ----------------

M

1:3 3

14 03026 --------

-------

--------

1 39

33

,

,

832

1:248

6 31

1

---

3 1 14

rs.,) 4 PhIfthita--------------- ... - ........ ---- .

ID: '

--

6-

.......

7

4

.....

=

4

M

52

42

:7M56

127,

79

.

1

........

2

........ In

1 7

C.md d be

( - 0

560

1'

1

3

3

20

5

4 027 1

------ -

--------

-------

5

...,k t 2b2 w ::::::::::::: --- 28~ X86 4 1 1

6 5

1

9

:763 17 2 2 69 ph,,.

If

I ~ j

d.lph 17 11

.

2 7 47

8

7" 1 1 2 41 I

Pittsburgh

JIG:

298 1 - ....... 1 3

8:6

91

2 3 1 ~

Scranton- Wi (Dela )below). : -.---

are) i

13,809 2 26 1 .1 4,11

902

w ..... ... ....... ----- .....

ng.

.......

Saw nn

1.

------

,

'

.....

is as III ", M 2 a I a

A11hurl, !

' 1

) : 2 227 ...... ........ 12 766

Id

M t

M

6: "786 -------- -------- --------

1

1

761

on ana)- ...-

1 7"

H asai.)

3 827

:::::::: ........ ::-::::: . I :

0'

::::::: . ........ ------ jLee A1geI*I - (1 54: 696 1 2 9 229 15. 5

5 --------

1 4 4 44 ph. a ::::::: ::: )

Portland----

") ------

9,920

13

I7I

...... - ------- -------- 58

76

2. 610

1 157

Reno --- [h*vsd.)-::::

,:

7 8 : :::::::

:::::::: 2,

i

:

294

198

....... 49

-----F :::::::

------

i

0

Salt Lake Pit Utah&

S. ranlr

6 966

:041 ------Y

---- ...

4

... -

14 271 1 518

a

at', 1 2 1 5

------ Z2,930 2 1 1 142 5: 754 ...... -1 2 2 4

Totals for States not shown bown

California

f 03 l 1 If

1

23 501 31,473

1

1 1

0

Illinois

----

~ ,~:%Is I

1 5 13 20

'

1 7 6 84

Mianour' 21 2

:

31

: 125

1

4 1

6

d 2 14

En,w

,l

'71

~3

441

2

9

4

7154 13

1

79

29,298

2

2

1, 1,4

Ohl. 61

7"

1

1

3 335 is

0 I

P

T:x"

Sl:S

77

5

1 2 8 Il.2 N:8 1

3 939

4

4

43 23 4

10

70

12

--

...

-- ,

ANNUAL REPORT as STATISTICAL TABLES

Table 14.-Number of occupational tax stamp, issued, covering fiscal year 1963, or portion thereof, by clan of tax and by internal revenue regions, districts, and State-Continued ,

Winn a.,

Intemal revenue regiom, districts, and States

(States represented by single districts indicated in

Wh.1'.1, dealers Retail deal.. Br.w..

R t il

T mpor r)

parenthrusel; : i Itotal$ for otherStates shown at bottom

W"ne"I' Retail

e a

ne".

d

d . .. in

`I "'

of

table) ..an d %e-... d L-thim I. dulars, dealers at large, (.J re,

Win

$2

b.,

1255 W 1'n'

wer.

'

SOD

barrels

$123 $24 $24 or bear), $54 $54 bgrVI, ar .1.1 T

IS .20 or

th

1 S 10

mon

(12) (13) (14) (15) (16) (17) (18) (19) (20) (21)

Unbeani St... -I.... ----------------- - IN

-

as

-

-

-

30,4n

-

a

-

M 10,370 1411 4gy M

Athelt, Misan. - . , - Atlanta-. i:- : -

o

1 11

-

usis Me

23 11"s 817 1

as

1

-

I'M

-

a

7 so

-

=

1iW::: ~Glab!nnxi -.:

--------

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

--...

. .........

.

.

59 2 649 1,645 .. ... ... 2

. ----

So ' no

n:~:::

1 :Zl

1

-

.. :::::::: .

.376 -.......

,

--

0

' 0

- ----------

------- ---

-- I-------

:

Greensboro---- IN.r h C p ----

Jackson. Mississippi)

if --- -- -----

- 3

3

28

---------

73

- 3

1,802

95

.........

........

..

.

.

.

IS

~. 74

3

1

6

- --- Ff

Jacksonv le - -

Plashville 3

. ::::::::

41.04 5 1 13

`1 49

......

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

------

August.---

~

... .

1.

.

3

------ 6i - --------

8

7 4: 92

..

..........

.........

22

So ton-. ---- .......

-------

. . -------

-

--4 - -------- ... .... ---------78 - --------2- -----

...... i6i ---------

': "0olic

- -------- 29 3 903 -------- : . 2 4

_

P C . ne

t th N ;;i::::::: .

------

1

52 2.156 274 o

P r .... ---- ----- ew Hapnp.hi

loa ,- Rh d I l

. ..... . ...... .3 1 1,598 ...... n ---------- ( o e s and). ---------

Chie-'fuce:-1,7 0 -- ----------- -----------------

---------- ( as tb) below) --------

----

-

-

2 -------- a

6

......

IF

10

9

I. rose

270 2

D." ". ......

: ::::' 1 113 2.783 10 1

48

I..111

211 :

.in _:::::: MiIwx.k.- :

S i fi ld S b

I

pr ng e - ---- an (b) elow) ......... 4 1 1 1,370 570 .

14 4

1

27, 358

C

-

4 13

n

4

as

3

"I --------

It 719 Man M

Cl ... land ..........

,low

is

!

i"ol

2

2 6

21: 1

142

4

a

169

11 579

........

265

299

)

LouIsvflr,.!u::::::::: k

"

------ .

8 6 2 066 4 229 34 ....... 72

P .....

hr

.'k..b., .,

~

........

......

-

::

------

358

1

11 2,317

575

1 47 is)

R

l,hpp,nd::::::::::: Vlr.hn : ---- 3 48 2 3,246 ....... 2 90 3 928

..........

..... ..

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

min

---......-

AI1u,- u* --

New Mexico) -

-

29 4

1

.1 Us

2

...... ... 10 203 ", M

...

!__:: ::::: U 479

A IS.. (h~ bell ow) ----------

-------

----

---------

6 4 3, Z8

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

6

3

414

IS

h 411 Dallas--------------- S..(h below)-----

tt] R

-------- --------:.

....

. 11 7 ---------- 146

: 135

3

..........

28 Li . ock (Arkansas) ---

s ::-

.........1

N w O l uj

2 23

: .... :: . 1

22 36 1 112 3 Okla o r ean ar.)-----------

-:

Ou

home Ciij Okl h

- ...... .......... 1 3 .......... 3

107 3 :.18

- ----- a oma). ------- 383

New 1.1, C11 u , M se, ........... ...........

.... ... --- 7 --- ...... 1 102 4.794 .......... 14

b:j1 W

is

-

ISO

12

..........

--

U

2 m94

25, Us 227

"

0

7

on .w :

rook S b 4 :::- i 59

--- -----

5 250 8: 766 56

124

20

B j

.ft ....... 1.

M h

1

4 ---- . ..... 6 132

3

.n , .819 ... ...... 294 ....

S nct ::::

30 1 15 72 .........

108

6

0 y 830 ......... 104

----- wxx~` Iwo2 .... ..... .... --- 7 ------ 2 97 3: 004 ... ...... 379 wg -.- ... --------- ---------------

Al 1 1, --- skota) - .

South -

I I is say ........ -

as

Its.

:

Ch:;.:~ : - ....

n 70

winmet,'

l) - - ---

:::~-:::: ::::::::

.

53

55

1 34S

124 3. Culmed0 ) : :: ::: :: -- -

-

------ -- 30 ..... .-

----------- I 64 1 1" 11 12

" ll ) k '

--- ~ :-

::::::::: -

....... 20

I 1 7 8 al:4Z2

~~.'e (ci a ,00 ~w:-_-: ------

be --

--------

I ..........

------ 1

2

49

68

3

1 52 -------- Onn.h.- L ....----- Nebraska)--

f :: ::::: ------ - -------- - ------ - -------- ,

2 96 1:195 .......

5

1') b.1 ow : :

.

KS Pau2::::: ~SMi

1 at 2 832 41 6

as. ) . .......

n.

Wichita ------------- (Upons) - asyl 3 3 --- 3 32 7:394 6 235 --- ---- bedal ::::::: B.111M., =W'.~ -- --------- .................... (Maryland and

------ -

----

-------- - -------- --------w--

541

-------

92

"

3,505

"

.......... 37

"

-----

Camden--- :-- dl

---

1 ------- ---------- 2

n4

76

2: 11 1

56 91

S 7 9

372 Newark ----- d

b

2 ---------- -------- ---------- ---- ..... 4 109 229 541

: P

.

Pilaf, :;*w :::-::,:

i

I .... ... -..... .......... .......... 14 788 853 4

_

)b .w

Scranton. .... below~........

I ....... ~3 7

4 51 4'1' 27

I

,

Wilmington. ------- - (Delaware),

----

3 -----

- -------- - ------- Frencesse, yeatinan------

a 11 2 58

Al sl, .0a- ~ toahe)!

a. IS, 1. 2 1, M

-------- ..

1165 I 25

S39

: .........

H

.

3 78

.

546 ------ 31

to An l S

4 a

3

-

2

go a. ........ ( ao (a) below)_

Phbenix :::::::: -------- F ------

6 135 5,417 14D ----------

Portland--- ---- --

, ff. -.....

16 ... 119N ..........

1 10

Go

381

1 708

--------- 2

94 ------- (NanyjdI) ------- ---------- -------- ---------- -- ...... ... ... 17 ,

139 7

.h

Salt 0

S RM' i ----- - 1 - .

-----

... '

31 1 1 1 an f

S xttl W hi

20 71 1 i:iii 7

J, :

1, e .~------------- ( as ngton)... ....... 815 ....... .... .....

I

..

------ I----------- ----------

6 64 1,2 53 29

Total, for States net 0- above

C.11forni ...... 71 2. 2,116 ....... 13 31

5

1 131 9

b

2

...... 20 .......

14 1

4'

,

565 I'D

I

M

N

3

1

6

149 4,356

15

435 :,-:::

N:.* "1.71un:::

3

41

2

20 so

185

681 5

5 646

93

63

913

921 o Ohio--

ivi 4 ::

6 1, 10 3,471 12 ISO

,

1,175 ....... 553 i )

Parrev r a

-

- ---------

2

3

........ -

25 1,952

. ...... ' '

T...------- ...... - 6 4 3,900 -........ 6 ISO ':7 .583. 6 5

94 1 95
I

1!

I

ANNUAL REPORT 0 STATISTICAL TABLES

Table 14-Number OF occupational tax stamps Issued, covering 1, of car 1963 or portion thereof, by class of fax and by

internal res"the rargans, diFtI=N;"ntin%;ed

Narcotics

lot I Avomus regions, districts, And States Moralto.. whole

0 "'N" in

Minu. Proud..

ad by single districts Indicated in Ore..

=n'

jurpn.4, ..I. Retail PrActi. W...d Ube.. t., D.W., cars Pro,11- Lou-

=, WUj, I , , at,,, States shawn at bottom of table) and com- Nolan. deal..

.

tion.., p "N.- tories,

i

are.

,

4

$3 and tioners

1

turns

pounds.

of opium.

$12 13

11

hours. 11 at,. 31 $2

$1

$ $1

of., $24

(Z2) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32)

WNWJNAuw' oves! -

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

2. m .16 = 2.1, AN 1, AN M 9 1 a 3.6

Agents wileas - ~---- ------

"' 5

"

Is)

'ATIMar.)-- -

;WlWij

I

12

11

948

647

4,

3,419945

2 367

191

5

3

1

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

Cc South C.

N.,th C-Im.) --------- ---------- 13 I'M

,

41101 112 1

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

-- ::::::: :::::::: ::::::::

jXAat __

p' ' M

2

.. 1 "

...... .

:

------- __ ---- ---

_

Jacksonvill-_: F Al 21 1,

"A

7,77 0 i ..... ....... -------- -------

N..hlltl------------- no-) -------------- 4 31 1,098 4 685 23 9

- ------ - ----- ousetes, -1-

-

, , ----------------

6 As 3,907

62

21.10, 1

4

a

---------- 1 1

5

2

2 1

,

42

11 365 14 14

--- ---

::::: : : : 3 36

2

,08 ,

11

,

671 1 2

-------- -------- _ ~

Burlington.-

H --- f d

--------

----- _

IS 953

5,561 11 10

--------

--------

--------

--

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

3

.......

1

.... paart or -

New Hampshire)

ru"'

::

--

1 3 114

161

2

P : -

.lift, Rhode Island) ------

1

6 336 1. 508 38 2 ------- -------- ------ - ------- -

chase.. readosr.......

a a 19 3 ------ - --------

b),Ilwj ::::::

an

138 38

59

22, 473

2

"

IZ 57,

12 169 54

1

14

----

------:.

-----

i -

_u"'

.....

Ali

.

r '") W

3

19 I'l

719

5:968

19

11

25

3

6

1

S. (b) b.W ): 3 19 69 3, 6 ------- ... .......

-1ser ...........

S....gWb*_j":::::::_:: 1 '29' LMO '5 8'72 24 10 - - 3 S: .

below) 1

37

1 '

Is

,

8,831 27 is

--

---- 1 2

Indian.)

K

6 3,16 1:341 a 1:171 3

"'

11

.

14 -------

. ---------

P .".'ta"' v

-------

9 3

U

2.

171

......

Virgin . . --- A --------- ------ 6 11 S 4,979 2112 6

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

:::: i ------------- - ------- *3 '298 "d

1: '"

a - - ----- 2 a

Al .

AN

)

A S. b t

--------

I '

119

1

m 7.211 15 4

us in

Dallas Saw Ir below :::::: 3

1

.:36

3

6,473 11 3 - ---- -------- -------- --------

-----

LIM. Back.- Arkansas)........

1

--------

6 598 2 002

3 1

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

Louisiana)........ :::::::

Now ou""

20 1,024 4:448

37

8

12

6 : ------- -------- -------- 2 ........

I

01d.hons) ------ Ok1.h. . I

'Wk City MIM. ..................

----------

U

14

N

941

1. 114

3, 6

4k4M M U

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

2

------- ----- W

1

A n (So. below

"

1 7

585 048 62 5

r,,

B k S below 1 1 2,1379 11 111

:955

111 L,7 1If

4

f

b:jp.

I

10

]a

37

77

1 925

4

16 206 137 32

......

1

........

2

..... _

- 4

-------

be b

man

S

Sync..--------------- SAs but..

I

a

,

488

,

2,773 98 2

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

2

. uskeer --- M

3

11,757

2"

M.Ass

737

.7

2 1 -- ------- --- ----

n

--- --

_.....

Ab,,d..n C .....

he *, .. ------- -

path

h;

: :: :

Yomi

-------

---- --- - 4 128

4

32

---- --

-----

-

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

- -

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

D ..., ..... . . .

r....... .......

.

: d. ..........

-

.......... 23 67 548

'

0. 6 2 -------- - As

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

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

- ....

:

...... _ - - ").

Iowa)

Oak

M

orth

..

------ F

28

4

903 1

99

3: 791

710

27 --------

20

--------7

2

:

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

)

K.-i Uii~ :: ::::

to (c

below) 17

a

604

171

Z

916111

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

2

--------

1

------

22 1

Ornal ....... ---- Nab 11,A)

........

..

S Lu'l._ -----------

IS

)

below)

L

0* (

I

9 15 777

3 27 12 ......

_to)

S L Paul ----------_--

Minn

...... 1 23 9512 5,429 6 2 -------- --

...........

VVI'lilt ............... Kann 1 7 760 2.88111 4 -----

........ ....... i

todAphLe --- .. 31

T f '

'IN I 4

j a

and D

'

C

------ ~S ry lf`tNI**

2 26

3

1,. DG5

M

7.314

3:006

5

3

10

2

-----

------

--------

I

--------

-------- I N 3: d b. .. :::: ----- . .........

8 23 1 396 7 921 34 30

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

ew. 1he 1 j

Phil,

S

d.IPh

---

20 38 i 042

1

1

:942 65 27 i

PIn'

Ittrith- ... ::::::::

I

11 1,264 5,948 8 8

:::::::: :::::::: ;_ :::::::: 82 474 2.0711

-

64 ......j

,

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

1- alu. 15 A. M Also - -------- 1

- Anchorage k 1 41 11, .... j- ------

---

----

I

Mal

2

4

240 NO

921

... I

.....

----

......

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

N ...

n .....

Hered.

We"

..........

-------

9 91 131 23 2 ----- ----

W)'_

Lou A. I.........

As

")

INI ....

"

71

2,551 21.138 42 33 3

Marine)

..

_ ..

Phoorl

'::::: ------

9

17

462 5

78

2,112

3 32 8

6

2

--------

-

-

- ---- ---

--------

---

Oregon)

.......

Ron._

--------

".ad.)

Portia nd-. ...

s- 11 LA-1, - ----- Cll,::::::::: :::::::

4

11

37

127

1 278

952

,

475

114:4

432

1

221

......

V

15

_ --- --

I

- .....

San I_ So.

He ,

Seattle. --------------- (Washinstal 16

1 :

047 4,936 5 4

-----

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

Total, far Status not in.- bowe

12

'

4

'

5M 35,570 64 48 3 1

111.1. ------

afiissdud~ __

ifL.

7 1 172

:111

15,766

1, 877

44

47

19

14 ------

NNo. Y k

.

"

1126 1

6.... 114 41:492 I.

58437 12

'4 1 12 -------

1 ...

ew or -

Ohio --.-::---- 13

66

,

' 72' 14 713 "

......

-

2

1 -------

-

21 57

57

1

: 780

32 932

1 9: 8 1

13 692

7933 357 1 .- ::::::::

---

6

-------- -------- 3 , ,

........

-- -----

96

ANNUAL REPORT As STATISTICAL TA13LES

Table 14.-Number of occupational tax stamps Issued, covering lisca!jear 1963, or portion thereof, by clan of fax and by internal revenue regions, districts, a States--Contin.ed

National Firearm$ Act Cair-oNtated devices billiard,

Paul. and

b_1m,

all" Ad ll

Internal revenue regions. districts, and States Mimft,tur- or Billiard or

u .r.

led.

(State, presented br Vu l. districts indicated in

Import,.

Pa..-

P-_

D..NN-

.11NION. Do"

a"' ,I.' t n

1*11 -1

and bowl.

Armt ""' d e"

Procter o

nb~..Nd

r

, t Wagering

parentheses; totals or at er States mown at hot. brokers

b-k.7

pl.r.

uha

IN

oolers,

",

device men evil

promises

.

Mr. at table) andUll`~d fill $50

'

l

Class 3:'

C' Are

pl, broke.. b -

'A.".

C 1.5.

c,!_ ~

Promises,

.

$250 per choose

ja- ~

ass

7C -S

"CD

L

Citrus 4.

4

T

Cie. $10

, . ,

110 g, device

[

$20D '2_ table .1

.INY

do,

(3)_ (35) (3 (3.)

-

(36) (37) (38) (39) (40) (41) (42)

shelf- a.,., 1-1 -------------- -------- 17 1 1

~~7

Q. 1. are. Ass .1.

"

Atiouss, A'J.'r I ------------------------------ (C

.

-

....

..... --

........

----- _

. * .......

---- --

2 2

a2

2, 719

543

n'ft. 403

7

As

:

Alabama

Bimatzimim --- :::

- - --

64

a 549

2:112

3 ------- 61

6

'

hir C:mjjm,j C ...:: :

G lb m

::

405 2,455 i,64S

-----

45

-r . l e) 32

Jacks n issi i

--- -------- ---- ..... ........ 4 904 3,394 19

-----

o ----------- zar pp )------------ 14

Jacksonville 11id l

------ - ----- .. ..... ... 2 275 2 995

,

964

_

--------

1,

_ A - ~ ---------

(Tern-)

...... .. ----- ------ .... 682 ~ 18D

6

58

i

I

.2

4 2

----- -

-

------- ........ ......... .. 5 626 4:461 2,232 .... _ ., 1 1 5

AU ---- -

3 '2.055 It 75as

- as,

a --

go ---------- (Masswchasous)_...... I ........ ..........

........

......... 9 O

3 6

I SO 201- ---

2

Burlington ---- I

Hartford

--------

TJ, .S

' I

-

-

P0ftmmUiIi::: (New H.mphi

') ----- --

472 346

1

3

Providence --- (Rhode Island) --, ....- .....----- -------- ---------- ---------- ..... ... ---

16,

06 1 350

16

C.-Mi- -I-

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

lel ~ib b,il, r

1

...... .

-

...... .

---------- 7

3

7

3 ."a689 a"- 2 421

.........

271

--- ......

M,'f a ) . u

Car. an

I

. . 2 1

4 21

2

1, ,

008 2

------- 7.

All W, Wisconsin)_ -----------

!

------ . ..... _ .... ..... 1 2

2,,

675

14

983

3 .......... 76

Bp .nl S.. (b) b kw) ----- 13

con m-11

I

----- . ........ ......... 1 1 1.127

7:

a

325 341 2 at

Cincinnati. "........... . -- ---------- (So. --------------- Mmv .

2 -------- 3 M

3

a. 414 2 61 NJ 5, o"

23 1. M

@ ~

Cleveland_

--- ~S a

----------

:: -------- 9

6

56

1.904

5

793

11.031

s 16

309

14

3

41

=,no -------- -------- --- 152 5 9" 6.383 1.456 4 578 696 4 229

:

1 938 1 172

Richmond ----- ----- (Virginia). ---- 2 ........ ..........

489

825

41,1 Lf

4

1:33

431 I

261

--------

-----

.

--------

..

1 3 17

4

,

: '" '. '"

.......... 37

No A Iao h

:- : l

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

--------

..... 128

192

1 600

8 002

31

37 ------ jj*

12

:::::::

S

Dallas:. ::: be ow

Littl .... .......... 48

.

'

e Rock--- --- INS

Orleans is

No

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

---

2:S 4 - ----------a 121

Oklahoma City....... (Oklahoma) ------------

--------

-------

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

4

524

464 2

$663

6: 75

2,825

218

-------- j. 345

w

1 I

Alban Yale city - e'--

2

I

...... 1 1. 853 as. AN 7 ..........

107

Ew ......... 41

b ---------

erockin-n -7 soe

I

--------

--------

----------

----------

- .....

....

..

..........

212

406

4:502 5

3 1 1

--- ...... ...._... 3

l

Buffs, , ~see

I --------

492

7 7

4,4

-------- -

.

------

..

see

---------

34 3

". ' ........ -

........

- -

As

eve - Iss,

- --------

------

--

-

----------

4 If

ge" _.......

2 4:411 j ::: ...... - ---- 12

Abu a...

'''

--------

2

--- -_ ..

1

. .

6,321

348 1 569 2- on287

.

2 M

Cheyenne-::: 1C ,0 .in ----

D n C

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

.

.........

.. ......

.......... 137

I ,.

040 233

........ ... 117

05

I

a ....... .1111d,? -------- I ....

Des Moi as

....... ----- ----- ---- ---- ..... ..... "D 2.536 163

.....

_.... I

-

.__ -----

.we) . ........... -

r

Faig.

hurt a

-------- -------- ----- 111 4 117 71

...

__......... ---------- 11

Kansas City_ ...... S. ----------

.......

357

590

: I ,

87

3

"'

I

12 .......... 11

L I 1b-lk,&;;

St I -------- -

909

,

2.900 139 1119

.

. ~ ,

.

. S (c) _

St Paul Mi nes t ) . ___... n o a ..... ......

1 j 62 7 5.197 456 2 6

Wichit --------------- K.msas)~ -- --

1

719 - --- ------ -------

4 12 48 13

a

------

- --------u4

B

975

:

3

BID

43 7 8 6

...

4 27

F 44

--- $2 Camden

S

I __ .... ........ 7 1

*11

------ --- -

7.'111 4,'1 ------ 620

ftwfurk o'ris )b

------- -------- ---------- ---------- --------- 622

2

31

33

~--- g

72

do Sao

b

) below ......

pi' 'l

a

-----1,

1

2

1.765

1,316

1

6.946

0.759 54111 92

or b_

Scram.. t a

(So, 11 "' ---------

-

(S Z ~

------- 1 5 1,236 9.546 1, 1 4 1 - --------- 313

.

. pw ... ....

Wilmington --------- (Delaware)

_----- ------ 722 5.211

2 6 7

- ....... 26

As

'9

....... .

.......

52

I's

477

4

11 sea 1

39

But- -------- ......

.

- ------- - 73

245

1 611

57

330 . ....... .

i

165

......

.. .

:

....... - 207

.

2.022

... _

26i _ ..... _

3

605

(S..(.)b.I.)

-

"a"Na ____

' -

3

.

. . . ..

_-i) 189

993

147

l:

a

56

24115 j- 37

::::: :

Portland I-

-I - __

......

)--- -------

(O

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

~

2' 201 2.318 248 1 15

-

-

Raw_ ...... _: regon) ad.)----

.

2 427

63

3.002

066

'

;

h)_ __ 22

Salt Lake City--

S F

.

. .........

3 82

1

9

:21

11311

l 6

1

48

'.) halo

an ranci.........

SMU. i.S .

2 2f

8

'1

122

g

-_ e ---- -- - --- ... . .......

:

534

r

Totaft for States not shmvn above

California' 3

- ---------- 1

7 1,819 17 970 28 Illinois ...

C Missouri

------

-------

----------

4 4 2,816

,

9, 746 612 2

15

2 ------------

' -

--

-------

-

------

----------

1

2

3 1177 Jig

2

:

10:1I'l 131 1

N Y.7k!: :::::-,

-

2

_

--------

7 1

---

1 953 22 698

.

7

.

4!

011,-- ------------

2 . ........

12

2:460

1 .

6,829 925 17

Is

pimusyl-I---------

T .

_

. . . 2

..

2 1 3 274 25.12

2,

711 ....... . 421 . ..............

.......

. I

........

. 1: 677 10.916 3, ..

lip.

97
Amount in dispute Amount pprov d P.,,..t .,ad m -.,ad

Basis of closing Number D.0,1:.gand

1-11m,"t

icienct and

D*

N ,r,,,,*nt 111111,nc d erpayment

1

i y

anelry

,

1 (5) (6) 7)

(Thousand dollars)

T.I.I.- ----- .................... -------- 5,726 323,291

1

'

10,976 110 3 .

Dismissed. .......... ....... Decision on --d"------

66

1 W9

5949.:,2, 2.,2 43

I IJ3 125 36 )' IT

0

Agreed -6 settlement- 4 :3 71 2

.

1,276 311 .

.

7.6

IL 1,

Table IS.-Appellate Division necelph and dispositions of protested Income, profits, estate, and gift tax cables prior to issuance

of statutory notice of deficiency (pre-90-clay cosee)

A. Progrea of work

status

Pending July I ........... -. ---------------------------------------

Recalled ........... ----------------------------------- ..........

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

By au.....t with taxpayers --- ------------ ------- Urupsed-mmen...1yardl... .1actlemi -----------

By of statutory nothes-transfened to 9Dd.y star.,

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

Matind

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

By agreement with reaper.. .....

Imainsed and ctaii'm------------------------------- rojections. -------------------

By I......I statutory ..U.-t-sterved to 90-day status

status

Pending July --------------- -----------------------

R-Iv.d. total ------------ -------- ------ ------------------------

Statutory notices issued by Appellate Division' ----------------------- S=notices Issued by it ntrict directors and raceived during 90-day

ohmay" of, total ------------------------------------------------------- ............. ----------

By agreement with Winters..... --------------------- --------- p.t;n By

By tax Idef..t--------------- ---------- --------------- - --- to the 1Tax CaIrl-trucidened to docketed status..-. ----

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

Method

Disposed .1, total ------------------------------ ------------------

By agreement with taxpayers .......... ..........................

ByBy Wdtlg., P. I.d.f..IL.- ~ ~ ----------- -..... ----------------- the Tax Court--transferred to docketed status. -----

98

ANNUAL REPORT re STATISTICAL TABLES

li..b.r of .-

(1)

11 1~, 132 174

15,853

11,945379

3.467

12,653

B. Results obixtined in dispositions

Numbered ...

(1)

15,953

11,11, 53, 3,467

N-jr., of .-

1,073

4,019

3.348

671

3.933

808 985

2.140

Number of -

3.933

SM985

2,140

Amount stated In revenue agent's report (thouUnd ckill.re)

Deficiency to tax

(2)

729 693 607~ $32

501,064

329,520 213 171,330

336,261

Deficiency in tax

(2)

312,505

IZ3,896

188,551

Deficiency in tax

(2)

70 550 204: 957

192.545

12,411

ZZ3,337

93 3 ~001 173,401

52,170

3 001

173,401

Penalty

(3)

Penalty

(3)

Penalty

(3)

37 793 29:438

25,183

1:, 2207

.956

42,048

Appellate determination (thousand dollars)

15,012

6.3577

8,60

Amount stated in statutory rofice(thousand dollars)

4 330 16119

9, JIM

1,111

10,933

120 2 616 8:197

4,366

2.641 46

8,197

0 ......I

(4)

dollars)

08 248 21:958

100,735

0 ..assessment

(4)

Overessmarrmt

(4)

9 040 1:676 4.018

159,471

0-sommormal

(4)

96,937

95.016 Us 937

Table 16.-Appellate Division receipts and dispositions of protested income, profits, earafte, and gift tax cosess in which statutory

notices of deficiency were outstanding (90,day cases)

A. Progress of work

128 U3

an

3

745

96 193 476

266

1 Differ.- from table 15--trimatenred to 9D-d.y ...it by ..... being ..hired or split for the purpose of teacher the statutory notice. I. transit .1.

B. Results obtained in dispositions

DeffelmicY in tax

(2)

219,096

Appellate determination (thevoin

P ...try

(3)

10.857 791

132 193 476

*Lm than SM.

star.,

Perot

R.mV%',uo'Yt.1:------------------- -------- ---- -----

Method

Star..

1 For analysis of disposals, ame table 19.

ANNUAL REPORT sa STATISTICAL TABLES

Table 17-Appellate Division receipts and dispositions of income, profits, extater, and gift tax cases petitioned to the Tax Court (docketed carears)

A. Progress of work:

- P.1iffim. filed in r!,ape- to- District directors statutory notices

Appellate Division's statutory nciWiii-: ----------------------------

Disposed of. total -----------------------------------

By stipulated U....rt with ---------------------- TK, Br ill-resel by the Tax Court or taxplyer default.------------------- ad before the Tax Court c

the ------------------------

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

Disposed of, total ..............

........

By stipulated agreement with ta.p. ByTri dismissal by the Tax Court or tay,m

ad before the Tax Court an the merlt3 I -------------- ------

Pending July I ------------- ----------- .......... Filed or reop...d --- ----------------------------- ---- ----- -

ngdJof ----------- ..................................... Napo ure 30 ---- ----------------------------- ........... -------

Number of a.

(1)

(1)

(1)

965 5:247

303 1N44

5.581

4,417 237

937

8,631

B. Results obtained in dispositions

Number of cases

5,581

4,207

937N

Number .1

10 298 51:3 716

72

9,948

Deficiency in tax

(2)

Tax

(2)

Amount "fiti.r.d (thn..nd delta.)

813 815

455: 942

319.945 1

36.097

317,710

260,672 5

51:297472

9S2,047

Deficiency In tax

(2)

139,246

81 222 515:277

.1 Represurn a amounts petitioned. Results as to decisions tendered by Tax Court during the year are shown in table 19. Loss than

719 752 405: 469 295 732 Ila: 489

Deficiency

Penalty

(3)

P... try

(3)

Penalty

(3)

83 429 41:992

31:,135 6 57

30,740

241: 258

486 4.996

94,681

in 1 Diff...me from table 16-translarred to docketed status-is caused by excluding district directors' statutory noticas considered by Appellate in 90-day status, caso, transit, t'.

*Lm than $50D.

Appellate determination (thousand dollars)

13.630

7.154

1:

48'

4 996

Table 18-Office, of Chief Courtsel-Proceissing of income, profits, estate, and gift tax coin in the Tax Court

Amount in dispute (thousand dollars)

90,785 33,704 27 559 W,930

Overareausernent

(4)

V)

0,.r-.nt

(4)

Overpayment

(4)

10,119 443

Table 19.--afice of Chief Counsel-Results; obtained in income, profits, estate, and gift tax cases disposed of in the Tax Court

99

313 10

11178

933

240

9.394

7,018

6,773

0

240

11152:581 782 166,941 41,421
lauxtrosidtippicals In supreme co rt

A.m. of in dispute th d ll mount th

d

d7ri ,bam""th' , 11 111rialnmaid

Status Number

ars) ( ousand o (

." )mber

( ... housand plia.)

o'""' Deficiency Overpay. Deficiemy ~rfra,_ eficiency

r, Ili*

y0,

.ad Penalty

..at enalty and ~ W d P ..try nt d

penalty t

(1) (2) (3) 4) 5) 6) 7) ) ) 0)

Pending July 1. local------------ 487 32.636 9,394 --- ----- --------- --------- -------- --------

it 1

App"! '

1 41 171

1 - -------- ------

f

~ y

Poe :d b,

323 6

1 ", :,

5

Ap

b

pealed by b --------- 15 1 5 17 - ------- ------- ----- -------

Appealed. total.__ ------------ ___----- 390 16,414 12 4 16 --- ----- -------- -------

B Commissioner... ----------------------

y

R 61 4 13 1 ------- - ----

y,.. g.y. ......

2 1:

-

1

32

i

"

8y

, ___LO84 4 .. --- -------- -------- ....... ----- -------- ------

isposed of. total-_ --------------------- _- 294 17.331 7,1158 ,818 ,290 7 2 -------- 6 --------

Favorable to Coomision., ... ------------ -141 ,054 3

. T '

2 0 0 --------

Favorable to taxpayers -------------------- 67 3,795 11, S34 .... . _ 279 2 9 -------- - ----

Modified - ----------- ___-----------

Settled ..... ------------ -------------- 10' 1: 339 2

4

521 ...... 3--

1

3

------ ---

-------

-------- .-

7

-------

----

-------

Dismissed------------------- -........ 58 3,041 3,470 ...... ------- --------- ------- --- -------- --------

ending June 30, total-------- --------------- 593 31,719 38 -------- ----- 3 6 -------- -- --------

it 1, '" :11 .171 3

------ - ----

by fluunly

A pp: :d 11

0"" '

5 Appealed by both ----_------------------- 27 7,956 30 -------- --------- --------- ------- -------- -------- --------

Star..

Tot., Miseells- mant.

am I

ien cassear not in court Iint-I collection littivitilu peal

causse

(1) (2) (3) 4) 5)

Basina"di Ad""! 161:-8 333 99 755 1, 2,119 4

3,110 9349

Total 7.591

-

,054 ,245

_

774 8

as a

'.1'.Pd-l

30 1

2813 711 293 2.135 110 069 705 43 175

Total

Refund wifts (other the. I- hol tobacco mal.firear- tax;s) I

P urprienbon of testimony

ad darn z.

chant refunds status c a:

Court .1 District courts claim.

(1) (4) (5)

P.mifin July 1: Cas'a...---------_-------_- --------------- --------_------- Qu bar--

Amo of In clasparts ........ _.. ------ -------- Vanausel d.11-,

,242 440,780 94 234,098 693 072 1

12 41,598

Recti,sal: Idleal r

A . of In 6 a B..:

1, . 24 8 1643 51 0

247 7671:224 5725f Gnp md f :,

,

%

- . ---------- ...... ----- rahe

Amount in dispute --------------- . ....... dollb-

,417 157,614

3

54 237 1,203 5. 0.114 7

2

296 Minted: AmmanWf _,;7~,;;f, , __ ~ --------------- ----------_-------thousand dollars.. 7,132 1.413 ,719

Percent hoosed W_ ---_------- ------------ ---------- ------- 3.56 1.95 4.49 read no 30:

mom

_ ""

.249 71 ,747 4

Amount In dispute ........................ 60ii d d.1I..::1 01.209 1 33,108 1 67,262, 1 427

100

-L-the. 33110. Revised.

ANNUAL REPORT -a STATISTICAL TABLES

Table 20-01fice of Chief Counsel-Accelpt and disposal of Tax Court cases in courts of appeals and in supreme Court

Table 21-Office OF Chief Counsel-Receipt and disposal of suits Filed by taxpayers In Federal courts and actions by the

United Star" for recovery of surrommous refunds

as not .!,,a. with the number of am in which decision were rendered by there astarts during the year. do. to arefthan of cifixtroureb. bt :1axlh"`rdi,.fdd1'rr@t,Ix raputstiour 'tion ndfiar. 1. 12 1 a. against the Government. and 18 partly for and partly against the Government. In the district couft422 decisions were tendered, of which 166 were for the Government,

ZOD against the Government and 56 partly for and partly against the Government. For decisions by the courts of appeals and Supreme Court, see table 22.

Table 22-Office OF Chief Counsel-Decisions OF courts

of appeals and Supreme Court in civil tax man

Pending July 1. -------- __

limited---------------_-

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

By courts of appeals, total'_ ----

Originally tried 1-

Tax Dilt"tilt....;;i;. t ----

By S.P.Q., Court, totalOriginally tried firTax Courl ---------------

Distal loons -----------

C ..t"~,f claims ----------

SUN am----- -------

Status

Toluil-__ ....

Disposed "Wili. ._: " :::::::

Court

grew.

Total

(1)

1,739 3,296

5,034

'2:079 "'

Total

(1)

ANNUAL REPORT as

M

349

US

9

3

3

I

2

Rear1;fo.niza

onessed- less

C2)

For the Go-o- iterat

897 1. 08

1 395

1:170

(2)

-

2.555

237

229

111

a

23I

2

Against the Go...-

..at

(3)

----------

::::::::: ------- .

----------

areNot-Except tar Supreme Court am, the cannes covered by tables 24 and 25

not included.

Table 23-Office OF Chief Counsel-Receipt and disposal

OF collection, injunction, summons, and disclosure cases

R.

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

'Pi.,

areNote-x'This table Includes areas handled at national and regional levels which

all und "

fil-tion far radt ., are In nit in Federal and State courts. ltdoes, hot Include uses relating to alcohol, Wb.-. ad filu,ms taxin, nor lo,insal verFy and debtor proceedings (table 24), or spout and other am what, are rathudedin table 25.

Table 24'-Office of Chief Courasel-Recuipt and disposal of

insolvency and debtor proceedings

Bankruptcy _,ad p,firen;d~ifr

ou -

ings I

(3)

434 1, 033

1.467

993 494

78

78

1226

Partly Wrinal

against finally

the Gov.

.,..art

fiffiralla.

....I

insolvency proceed. fings 3

(4)

(4)

43

42

33S

.........

-- .......

Number of arms

:389 737

3,126

1: 2697

407 605

1,012

587 425

I Proceedings Y All Instituted under the following function or chapters of the Rank. in... XII:(1m, rhm.71...a(" 1.11% ramals"11.1. ta .... 111111"d , d.br1,..X.~.mXpms,1, 'it if realreagarit,; pro if arrangements). and Xill (wals earners'Piams), which involve Is, claims and other

' ""

,,.p"y`1uId-U-- P xs-E-'

.1

.1sto -1-1., ProceedI.- -h

fifin"'"

tar claims f.h.

d"fits

'"it

in's-'s

" tax '~U`d ' I

". -in'.

".U.. an conappatax

mol,emt banks, suir the li=

t

of creditors.

, infirofint."

n.i.t. to,

claim of the United States. of dannalm.ts.hich n.l. tax

N-h-finchides can. handled .1 ostmrml ad regional livels.

STATISTICAL TABLES

Table 25-Office OF Chief Counwel-Ranxelpt and disposal of miscellaneous court cases, lien cases not in court, noncourt collection litigation ewes, and appeal cases

I Includes suits to, Imellnure h. by morting- or other mated creditors. ad suits to Quiet title to whim t a United Sirfire is made a party. Ix Primar!:Y applications for discharge a groperty Imm tax liens. Priners I act.. antarommullao, which areona.,1H*l:.Wnt1.1fi m. hatict nort pro-on, it 2.1"'a regional counter -im,ludescaseli. debtor proceedings, Jim cases in court, and allectani, summit W in'.1-cY ad mrs. and injunction

A Includes appeal causs formerly shown in a separate table.

flote.-Includers, uses handled at national and regional levels.

Table 26-01fice OF Chief Cournarl-Catelocad report

Activity

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

Administration,................

Alcohol ad Tobacco Tics-,----

National Office. ............

Field...... ..............

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

National GIN cer.............

Field------------- ......

Enforcement------ 7 ~ .......

National ORB ....... _ .....

Field---------------------

Interpretative Division ......._

joint Committee Division., ......

Refund Litigation Division ..... _

Tax Court 3. ...................1

National Offic....... _ .....

Field.................. _-,

Pondlas July

121.938

31

399

95 3D4

4.385

499 3,996

2,813

120 2,693

195

3.242

10,791

493 10,298

1 Revised to include Administration cam. ,,trial P-ndocCIL a- all included.

Receipts

26,961

72

4,961

112 3I: 949

11,366

953 10.413

2,123

134 1,989

706

1.424

5,780

403 5,377

Disposals

26,465

4,997

1,115 3.782

10,922

&57 10,065

1,980

174 1, Site

5E

5n

1,417

6,027

300 5.727

Pe it N

22,434

101

1112

463

92 371

-

4. 829

595 4,234

2.956

90 2.876

202

IE

3.249

10,544

SM 9. 9"
I

ANNUAL REPORT 4) STATISTICAL TABLES

Table 27-0bliffirtions Incurred by the Internal Renverrue Smile,

[in thousands of dollars)

Personnel

Total co7envation Tavel Equipment other

internal ...... . flicat, di.Ui.L or .all.

.

a Imumfit,

(1) (2) (3) (4) (5)

A. National Office and regional trials (including district directors' offices and service

,art..)

Total internal Remove SIMI- ~........__-------------------- ...... 500,804 440.542 16,926 6,349 -36,987

Mail net Offic------------------------:-------_- ------_------ ----- 54,129 31.235 2 316 1,797 18,790 A

Harter . ratio.......... _-----_------ --------------------- ------------ ----- 49.25D

30 41

5

4

23,481

7 394

2:Z23

756

752

36

0

2,794

atime, ----------_-- -- ----- Chi m

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

,

48,227

,

5,362 1,147 298 1 420 cago ati

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

Cincinnati ration ... ........

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

47 539 43 942

1

774 453 1,470 _ _ ......

Dallas N.. Yfr1 re l.n _------- . --- --- ---- - - - - - - ------------ --- 35:220 32:112 1: 648 294 1,166

City regme ------------_ ----------_--- ...... 55 US

4y 362

52.513

38 340

753

1 6"

563

34

1

1. 1%

2 014 011h Phil ,

55,763

,

"

1 : 212 . 1

,

1,585 .

San 1.. 64,563 58: 2.51

2

194 656 3,494

Regional -_------------- _: -------------

R ional inspactm- . ---- j_ _----------_-- ...... - -------- ------------

7,502

6,166

6,991

5. 170

165

$45

SS

12

288

1 6 f : 139 V

0 ne of Int...1mr. Pa. eng--_--------------------_-- ------ 3. 984 3,604 228 76 76

B. Regional centers)commissioners' offices, (excluding district directors' offices and service

Atlanta 8,752

3 661

7,181

3 191

490 1

"

1131 1,003 320 "... r.mn

Chi

.

1,171

,

5,273 130 38 33

Clue, 'erus, real. 9,032 8, 134 306 539

...... "

4,20D 3 726 172 41 259

He. 6 304

4:407

e,

7"

3 904

107

209

43

56

410

238

Pi 0"" rat ...........

re io 8,013

.

223

'

266

'l

g n.- 429

Sant Francisco

6,

no 6 :177 299 I l, 295

C. Regional md. ndi.Wb.td

Atlanta ...... __ ----------------_

-------

37

1420

......... ... 37

also, _----_ 1 42

Clucals. 13 39 ----------- -----------

'a".

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

Cinci nati re ion 241

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

241 n g ------------- ....... 252 226 .........

N.rr York City regid---- -------- .......... ---------_-------

Elaine 239 283a

'hiliclud

.

16,

---

d

San Francisco region---- .......... ....... ...... 450

D. Districts directors' officam and service centers

Atlanta:

Attint - - --- .............. ------- --------- 5.491 At

1,1 ------ - -

h........... .......... 1= ............... 85' 1 567 33 37 119

2: 637

5 921

2,

449

5 449

95

Z31 7155

77

............ 166

. . ...

lk

so

,

,

Z 3DO

.

Z log

. ... 107 17 67 ........................ ................

ack-111, I - --- ---- _......... _:.: --------- 91116 el~ 304

a

99

1 6

_....... --------- ---- -- 297

,,.shvlllt---------- --------- _. ----- ........ ............ _.. ---- __

asuld-I S-im Cant------------------- _ ........ .........................

4,964

5,942

4,605

4,757

172

36

47

Boston: 316 733 140

Augusta --------------------

1,694 5

1 74

63 Is 39 a .

.to ........

.

I

D, 193

884

9 : 7

81141

196

41

53

7

2

34

....... 11 Rodin :::: ---------- ----_--------

H

trig, 1,171 "'76 1

25 65

1

12 _ _ .......

e

Portsmouth-- ---------- --------

j,

237 55 41 10 32 -

P-id.n. ........ .............

Northeast Service Center.... -----------

.......... 993

4,764 1'

873

3,603

25

9

19

52

1.10047

Ch,cafl:

I7 :::

17

3:11"59 N: 050

206

315

139

77

121

3

7

D. ._: .

Milennukar. . ........................ 211 5 su

111

24 137 ..._ . .

Sprinl~fiakl ------------- __ ................. 4:968 4:636 .9, 20 121 Clhcirrml

Cj clnngrtf -- - ---- ------- 6 940 6 554 M 39 144 : ----- - --

Cf volarel _... ____---_...----- _

11

:051 10:379 293

101

279

l rdiunrumolis ........... ........ 7

1:012'

6 711

4:204

206

169

46

21

144

it] Loulall,..... _ ................

r - -- --------

k

a"b

p

2 890 2 578 130

81

102 u s --- -----------------_------------_---------_ -

Rich ar und...... . ..... --_------ 5:460 5:088 211 20 137

R ...I Service Center ........... 231 121

12

94 is

Alba ........... ..............

?u.

1,905 8

705

1 632

8:073

82

352 421'

74

239 Aust n . ............ -------- -------

0 1.

,

8,545 7,942 335 54 213 . ....... --------------------

Litll. ftock -_ -- 2.536 265

'

175 21 75 ------------ _- -

14- Orleame. - ~---------------------- ......... --------_---------- 4,901 4

58,

: 36

7 29

6

14

its Oklahoma City-------------------- _ - . . -___ .

Regional Sea- Centel------------- ....... ............

4 070

'205

3,79()

102

1

33 50 20 N_

York

Alban ity: 13 381 3 172 95 28 86

3:661 13:133 121 70 332

auff.1- .... ------------ _ ------ ---- 4,644

2 925

1

4,406

Z2 564

191

5D

34

367

112

945 Manh the".... ------ -------------- ..........

:----- 3 :

119 3:373 Il 21 69-- ----------------------------------------- - "l

' (.1

2 -'_nn-.__ - I ------------ ....... I.................

See footnotes, at end of table,

102

-ANNUAL REPORT 9 STATISTICAL TABLES

Table 27-0bligations incurred by the Internal Reneentue Semicrt--Cauntinturd

V-11mers.d.0d.14.1

Internal ,... no. .fficv,rH.tn.t,.rm2h,u Total

(1)

Personnel 2400n, 7=11 ..

fit,

(2)

Travel

(3)

Equipment

(4)

Other

(5)

D. Districts directors' affircer and service cent-Continued

Omaha:

Ate'd ...... ------------ -------------------- ..................

Ch. imut------------------------ ------------- -----------------_--- 1,283 1 165 as 7

D

965 ,

66 6

23

en,c----------- ------ --------- . __ 3D

D. filline- 3,742

3

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

501 103 21 116

Fargo -------------

442

1

4:

134

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

185 24 99

---

:165

3,876

1.

3,617

045

so

145 6

21

34

: 02

St Louis 2.725 2,528 103 14 JII . -----------------

St Paul

-_----------

4.634

4

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

412 109 29 83

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

..... wichit---- -- - -----------------------

5,874 5: 483 162 67 162

Midwest Service Center 3.928 646

1 --------- -----------

112 22 98

Philad. =

5,082

:

4 038 1

8.1 ....__................. 7 70 957

Camden----------------- ---------------

-- ------------- ---------- ------ 9.294 8,862 130 134 4,080 3,895 96 14

168

95

P Head ------------------------------------------- ....

9,951

1 0 667

91559

10 092

99

215 52

3

233

Pittsburgh, 7 ,,

609

,

7 273 136 1

'33 1167 Wilmington,

2

776 2 634 62

l

64

Regional

1

:

424 :364 20 i l

2, San

Francisco:

1,

787 398 26 149 215

Arch.rag ............... ......

a. ----------------- _ -------

759 669 49 3 38

H.I.h - -

4D9

1

31

1

------- ------------- 57 4 47 ------------_---_ Honolulu--- _---------------- ....... ..... A

1 :532

459

1

:391

1.395

so

27

19

9

43

Ponor nuptf,~__. Is_ ------------------- ....................... ...... 38

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

18 :733

2 460

17 516

2:ZgS

381

73 151

6

M

Pon-tillind ....

lano - - - --------------------

.

3,952 3.614 Ila 20

23 8297

Sell ,1 ,

296

1

216 12 91

San Francisco---------------- -------:~........ --------------------

6 3

12,930

:539

12,095

35

296 7: 40

Seattle- 4

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

....... Waste. S_.'r ' j _.' '6_0----- -------5 871 5 306

it,

1

. - - .... 3 43 4:989 3:655 16 3 I,i7l?

Includes $398,460 fi-Wfrom rainnimmennerls. Does not include $930,172 rental transfer to General Services Administration. I- than $500.

Table 28-Ourinfity and cost statistics for printing

Cie. of Work

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

Packages of tax returns and instructions for major mailings to taxpayer, total......

1963

Quantity (tharands)

411,597

P c':1

Form Pat.) ------------------- I

~F-

-.a. I.. -ch. .-I. aP.ck ' ': 2 ScLsVI'll, had , aR, ID,1040ES, and

Mat-flam-28 Palms)

.3'6: '321)

""DD a 9."

, 1040ES, and Instruction"Op

P.lk (Form 1046,'Slhadtlas

'gas)::' 77,726

package '.ckeck," 4,7 D mt_Ij.. I 114"S 'n!inx1p,1,11" re): - 31.625 Vfr. 1065, Schedule D. a6d'irtum

11101416,~Ilnll.'* I instrullmr-24 p.Jvn)._.

5.190

unint.'er

an

naturn 41: 0280

E

(

. ,, CH~rlnd

213-28

P.Awkii-Pb.

-

393

-

F 701

.

8,

-

941

------------- --- ................... 64,976

Other is' "turns, Instructions, Public-un forms, and pamphlets

Admialstrapye lorms and pamphlets -------------

-

"'a

Field p'llb.g_........... ............

---------- S31',

""

..........

E.- to. hurp .................. ........._........ d"

I Here forms 3435 and 3227 ccount to, ... Hh, half of instance over I9S2 qu.hUt,

Packages

(2)

69,913

N11:040 118

1

066

2:875

1.036

':

125

20 000

4.061

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

cost

(thousand

dollar.)

(3)

8,849

1,207

21

a

,OD

257

102

15

28

95

93

23:982

452

368

940

1962

(hmufHY(thq-mdx)

Numouset.

(4)

3$4,664

36.765

119'640

77: 315 "54D

.225

405

50:604

64, no

... :

756

173 5w

1. all 901

918:932

Packages

(5)

68, 913

12.255

Is:

955

7 055

3 140

1:141

.08.

25.302

4.M5

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

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

cost

(thousand

dollar,)

(6)

8,289

1.122

163

343

258

112

26

120

v

3 720

2:155

363

929

103
Iii

A

Acts:

Revenue-1962, 35

Tax Rate Extension-I 963, 35

Adverse Tax Court decisions, 22

Advisory group, 59

Alcohol and tobacco tax:

Authorization of operations, 32

Chemical analysis and research, 33

Court decisions, 70-72

Enforcement activity, 29

Establishments:

Inspection of, 32

Qualified, 32, 92

Label activity, 33, 93

Major violator program, 29

Mandatory preventive raw materials

program, 29

Regulations, 5, 65

Seizures and arresn' 29

Supervision on.prc~iiscs, 32

Statistics on, 9, 78, 85, 86, 88, 92, 93

Announcements, 67

Annual technical review institute,6

Appeals:

Appellate Division, 19

Closing agreement cases, 21

Processing of, 20

Statistia on, 20, 21, 98, 99

Appendix, 62

Arm service centers, 14

Assessments, additional. (See Taxes.)

Automatic data processing:

Atlanta Service Center, 15

Detroit Data Center, 15

Ncw~ studies, 15

Philadelphia Service Center, IS B

Budget, net receipts,II

Bulletin, Internal Revenue, 7, 66 C

Carryback allowances' 14

Chief Counsel, Office of:

Analysis of cases flowing through, 26

Casa involving criminal prosecution,

23

Disposal of mses by, 37

Civil litigation, 22, 37

Claims. (See specific item.)

Closing agreement cases,

7

Collection litigation legal services, 28

Collections:

Alcohol taxes, 9, 78, 85, 86, 88, 92

Corporation income taxes, 8, 9, 77,

85, 86, 88

Disability and old-age insurance, 8,

9, 77, 85, 86

-'s.o-s-.

INDEX

Collections-Continued

Employment taxes, 8, 9, 77, 85, 86, 88

Estate and gift taxes, 8, 9, 10, 78, 85,

86,88

Excise taxes, 8, 9, 10, 78, 85, 86, 88

Individual income taxes, 8, 9, 77, 85,

86, 89

Old-age and disability insurance, 8,

9, 77, 85, 86

Other, 9, 84, 85, 87, 88

Railroad retirement, 9, 77, 85, 86

Stamp taxes, 78-80, 84-87

Statistics on, 9, 77-88, 92

Tobacco taxes, 9, 80, 85, 86, 88, 92

Unemployment insurance, 8, 9, 77,

85,86

Withholding taxes, 9, 77, 85, 86

Commissioner:

Contest of suits, 68-69

Summary and transmittal letter, iv

Commissioners of Internal Revenue,

1862-1963, viii

Conventions, tax. (See 'Fax conventions.)

Corporation income taxes:

Additional assessments, 24

Claims for refund, 19

Collections, 8, 9, 77, 85, 86, 88

Refunds of, 11, 12, 90

Returns:

Examined, 18

Filed, 13,'91

Statistics on, 8, 9, 77, 85, 86, 88

Court(.):

Circuit courts of appeals, 22, 70

Of Claims, 22, 38, 101

Supreme, of the United States, 22,

100, 101

The Tax, otthe United States, 20-22,

99-101

United States District, 22, 38, 100

Criminal prosecution:

Analysis of cases, 23

Casa, disposal of, 23

Results of, 23

supreme Court decision in, 68-70

Current research program, 44 D

Delinquency investigations and definquent =turns;

Additional tax from, 22

Analysis of, 22

Statistics on, 25

Delinquent accountst

Disp.sab, 25, 26

Statistics on, 25, 26

Depreciation,

5

Determination letters:

Employee benefit plans,

6

Determination lette-Continued

Exempt organizations,7

Pension trust plans,6

Statistics on,7

Disability insurance taxes:

Collections, 8, 9, 77, 85, 86

Refund,, 12

Disciplinary actions, 57

Dividends and interest, 44 E

Employee benefit plans, determination

letters on,7

Employment taxes:

Additional asisessments resulting from

examination, 18

Appellate Division processing of, 21

Claims for refunds, 19

Collections, 8, 9, 77, 85, 86, 88

Refunds of, 12, 90

Returns:

Examined, 18

Filed, 13, 91

Enforcement activities;

Additional tax from, 24

Alcohol and tobacco tax enforcement, 29, 31

Appeal,, 21

Claims disallowed, 19

Delinquent accounts, 25

Delinquent returns, 22

Examination of returns, 18

Firearms program, 29

Informants' rewards, 28

Mathematical verification, 16

Offers in compromise, 27

Tax fraud investigations, 22

Engineering citator,6

Enrollment of practitioners:

Amendments of, 57

Renewal of cards, 58

Special program, 58

Statistic. .., 58

Estate tax:

Additional

tusasmat.,

25

Appellate Division processing of, 20

Claims for refunds, 19

Collections, 8, 9, 10, 78, 85, 86, 88

Refunds of, 12, 90

Returns:

Classification of, 18

Examined, 18

Filed, 13, 91

Estimated tax, declarations of:

Corporation, 13

Individual, 13

Processed by scrvice centers, 14

105
I

I

I

Examination, additional assessments

from, 24

Examination program:

Claims for refund, 19

Classification and selection of returns, 18

Overassessments of tax, 19

Returns examined, number of, 18

Tax recommended, additional, 18,19

Excise taxes;

Additional assessments, 25

Appellate Division, processing of, 21

Collections, 8, 9, 10, 78, 85, 86, 88

Refunds of, 12, 90

Returns filed, 13, 91

Exempt organizations, determination

letters on, 7

F

Facilities management:

Records and paperwork, 54

Space, 52

Statistics an, 54

Federal-State cooperation, 16, 28

Fiduciary income tax:

Additional asseannents from examination, 18

Returns filed, 13

Field offices, reduction of, 49

Firearms program, 29

Fiscal management:

Budgetary program studies, 56

Cost ofoperations, 54

Statistics on, 56

Foreign tax assistance staff, 39

Foreign tax officials, assistance to, 40

Forms:

Cost of printing, 103

New:

3435,64

3468, 64

3491, 64

3520, 64

Revision of, 64

Tax return program, 4

Fraud investigations, tax, 22

G

Gasoline taxes:

Collections, 81, 85, 87

Refunds, 12

Gift taxes:

Additional assessments, 25

Appellate Division, processing of, 20

Claims for refunds, 19

Collections, 8, 9, 10, 78, 85, 86, 88

Refunds of, 12, 90

Returns:

Classification and examination, 18

Filed, 13, 91

106

ANNUAL REPORT * INDEX

I

Incentive awards program, 51

Income tax(m):

Additional, from enforcement, 25

All returns, 8, 9, 77, 85, 86, 88

Corporation, 8, 9, 77, 85, 86, 88

Individual, 8, 9, 77, 85

'

86

'

88

Processing of protinted cases, 20

Indictments, 24 1

Individual income, taxesAdditional assessments, 25

Appellate Division, processing of, 20

Claims for refund, 19

Collections, 8, 9, 77, 85, 86, 88

Mathematical verification of, 17

Refunds of, 11, 12, 90

Returns:

Classification and examination of, 18

Filed, 13, 91

Processed in service centers, 14

Informants:

Claims, disposal of, 28

Rewards to, 28

Information returns, number received,

14

Institute, annual technical review, 6

Inspection activities, 56

Internal audit, 56

Internal security, 57

Investigations, 57

Statistics on, 57

Intelligence Division:

Statistics on, 23

Tax fraud investigations, 22

Interest allowed on refunds, 11

Internal technical development and

guidance, 6

International Operations:

Activities of, 39

Foreign posts of, 40

Withheld taxes, 41

Interpretation and communication of

tax laws to taxpayers, 2

Investigations:

Delinquency, 22

Disciplinary actions, 57

Of applicants for enrollment to

practice, 58

Personnel, 57

Prosecutions recommended, 23

Statistics on, 23, 58

Tax fraud, 22

Wagering and coin-operated gaming

devices, 23

J

joint Committee on Internal Revenue

Taxation, 21

K

Kit, Mr. Businessman's, 2

L

Laboratories:

Research, 33

Testing, 33

Legal activities, 37, 38

Legislative activities, 34

Litigation, appeals and civil, results of,

22

'

37

Long-range pi...ing, 42, 43

M

MaJ r management improvements, 48

Major violator program, 29

Mandatory preventivc raw materials

program, 29

Management activities, 48

Management improvement program,

48

Map, eight Internal Revenue Service

regions, xv

Map of Internal Revenue regions and

districts, xiv

Mathematical verification:

Additional tax from, 17, 25

Statistics on, 17

N

Net budget receipts, 11

. 6

Obligations incurred, Internal Revenue

Service, 56

Occupational taxCollections, 7"0, 8447

Number of stamps issued by class of

tax, 94-97

Returns filed, 13

Offers in compromise, 27

Officers, principal, Internal Revenue

Service, ix

Old-age insurance taxes:

Collections, 8, 9, 77, 85, 86

Refunds of, 12

,

90

Other collections, 9, 84, 85, 87, 88

Overasawarents, 19

Overassessments reported to joint Committ-, 21

P

Pension trust plans, 6

Personnel:

Attitude survey, 50

Employee-management relations, 51

Equal employment program, 51

Executive selection program, 51

Incentive awards, 51

Investigations, 57

Program review, 51

Personnel-Continued

Recruitment

,

50

Staffing and redeployment, 50

Statistics on, 38, 50

Summer student program, 51

Planning activities, 42

Practitioners:

Enrollment of, 58

Statistics on, 58

Principal officers of the Internal Reve-

. Due Service, ix

Programs:

Equal cruployment opportunity, 51

Executive selection and development,

51

Incentive awards, 51

Reports, 49

Streamlined training, 49

Summer Student assistant, 51

Taxpayer compliance measurement,

43

Teaching taxes, 3

Protested cases, statistics on, 2o, 21

Public information program;

Films, radio, and television, 3

News releases, 3

Other, 3

Publications, taxpayer:

Decedents, 63

Farmer's 'Fax Guide, 62

Information Guides, 63

Investment Income and Expenses, 63

Motor Fuel Tax, 63

Mr. Businessmain's Kit, 2

Objective of, 2

Statistics of Income releases, 72

Tax Guide for Small Businem, 62

Tax Guide for U.S. Citizens Abroad,

62

Tax Return Filing Requirements for

U.S. Citizens Abroad, 63

'reaching Taxes, 63

U.S. Tax Guide for Aliens, 62

Your Federal Income Tax, 62

Puerto Rico, 92

R

Railroad retirement taxes:

Collections, 9, 77, 85, 86

Refunds of, 12

Returns filed, 13

Receipt and processing ofreturns, 13

Recruitment, 53

Refunds:

Claims for, 19

Excessive prepayments, I I

Statistics an, 12, 90

Regulations:

Alcohol and tobacco taxes, 5, 65

Amended, 64

Excise tax, 65

ANNUAL REPORT * INDEX

Regulations-Continued

Hearings on, 5

New, 5

Regions, reduction of, 49

Reports program, 49

Representation by former employees, 58

Requests for tax rulings, analysis of, 6

Research program, 44

Resources utilization, 43

Returns filed:

Classification and selection of, 18

Examination of, 18

Increase in, 13

Number examined, 18

Processed in service centers, 14

Statistics on, 13, 91

Verification of, 12

Revenue rulings and procedures;

Analysis of, 7

Published, 7, 66

Service centers, 14, 15

Short-range operational planning, 42

Stamp taxes, statistics on, 78-80, 84-87

Statistical reporting, 45

Supervision of the alcohol and tobacco

industries, 31

Supreme Court cases, 20

Supreme Court decisions:

Civil cases, 68

Criminal cases, 70

Other court actions, 70

Systems review and coordination, 43

Tax briefs, 6

Tax conventions, 40

Tax Court, The. (See also Appeals.)

Adverse decisions, 22

Disposal of cases, 21, 100 101

Tax laws, interpretation ;~d communi.

cation of, 2

Tax(es): -

Additional:

From delinquent returns secured,

25

From enforcement, 25

From examination, 18

From, mathematical verification, 17,

25

Alcohol, 9, 78, 85, 86, 88, 92

Corporation income and profits, 8, 9,

77, 85, 86, 88

Disability insurance, 8, 9, 77, 85, 86

Employment, 8, 9, 77, 85, 86, 88

&rate, 8, 9, 10, 78, 85, 86, 88

Excise, 8, 9, 10, 78, 85, 86, 88

Tax(es)-Continned

Fiduciary income, 25

Gasoline and motor fuels, 81, 85, 87

Gift, 8, 9, 10, 78, 85, 86, 88

Individual income, 8, 9. 77, 85, 86, 88

Old-.gc inisr-ace, 8, 9, 77, 85, 86

Other, 9, 84, 85, 87, 88, 89

Railroad retirement, 9, 77, 85, 86

Stamp, 78-80, 84-87

Tobacco, 9, 80, 85, 86, 88, 92

Unemployment, 8, 9, 77, 85, 86

Withholding, 9, 77, 85, 86

Taxpayer assistance program, 4

Taxpayer compliance measurement

program, 43

Tax rulings:

Request for, 6

Statistics on, 7

Teaching taxes program, 3

Technical information releases, 68

Tobacco tax(es):

Arrests, 29

Collection, 9, 80, 85, 86, 88, 92

Refunds of, 12

Results of criminal action, 24

Returns filed, 12t

Seizures, 29

Statistics on, 9, 80, 85, 86, 88, 92

Tort claims, 38

Training:

Commissioner's committee, 52

Experimental centers, 52

Orientation, foreign tax officials, 52

Treasury Decisions, 64

Treasury-Internal Revenue Service

Committee on Statistics, 46 .

Unemployment insurance taxes:

Collections, 8, 9, 77, 85, 86

Refunds of, 12

Return, filed, 13, 91

Unenrolled preparers, 59

V

Verification, mathematical, results of,

17, 25

W

Wagering tax cases, results of criminal

action, 24

Wines, taxes collected, 79, 85, 86, 92

Withholding taxes, by employer, 9, 77,

85, 86

Work flow in the Service and courts, 26

U.S. G~N- PRUCTING WFI~: 1963 C-767-T51

107

%4ki,