ANNUAL REPORT 

OF THE 

COMMISSIONER OF 

INTERNAL REVENUE 

FOR THE FISCAL YEAR ENDED JUNE 30 

1940 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1940 

For sale by the Superintendent ofiDocuments. Washington D C Price 15 cents (paper cover) 
CONTENTS 

TREASURY DEPARTMENT 

Document No. 3110 

Internal Revenue 

Page 

Introduction 1 

Collections 1 

Cost of administration 4 

Personnel 4 

Important legislative and other changes affecting the Bureau 6 

Accounts and Collections Unit: 

Assessments of employment taxes 10, 

Taxes under Federal Insurance Contributions Act 19 

Offers in compromise 11 

Coordination with Social Security Board 11 

Tax under the Federal Unemployment Tax Act 11 

Offers in compromise 14 

Carriers taxes (Chapter 9, Subchapter B, I. R. C.) 14 

Coordination with Railroad Retirement Board 15 

Income Tax Unit: 

General functions 15 

Income and excess profits taxes 15 

Collections 15 

Returns filed 16 

Examination of income tax returns upon receipt 17 

Investigations and adjustments of income tax returns by field 

offices 17 

Inventory of returns on hand in field offices as of June 30, 1940_ _ 17 

Unagreed adjustments pending 18 

Revenue results of audit and investigative efforts of Unit 18 

Stage at which additional tax was assessed 19 

Petitions to the Board of Tax Appeals of income tax cases 20 

Refunds, abatements, and credits 20 

Depreciation 21 

Miscellaneous Tax Unit: 

Estate Tax Division: 

Returns 22 

Claims 22 

Court decisions 28 

Tobacco Division 23 

Sales Tax Division: 

Admission taxes 25 

Documentary stamp taxes 26 

Playing cards 26 

Oleomargarine; adulterated, process, or renovated butter 26 

Mixed flour 26 

Firearms 26 

Narcotics and marihuana 26 

Bituminous coal 27 

Silver tax 27 

Hydraulic mining 27 

Assessments 27 

Field reports and returns 27 

Claims 28 

Credit cases 28 

Offers in compromise 29 

Miscellaneous tax special squads 29 

Capital Stock Tax Division 29 

Processing Tax Division 29 

Sugar tax 30 

Claims 30+ 

III 
IV CONTENTS 

Alcohol Tax Unit: 

Procedure Division - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Statistics 

Ethyl and denatured alcohol 

Distilled spirits 

Rectified spirits 

Fermented malt liquors 

Wines 

Enforcement Division 

Field Inspection Division 

Laboratory Division 

Audit Division 

Assessments 

Offers in compromise 

Alcohol Tax Division of the Office of the Chief Counsel - - - - - - - - - Technical Staff 

Field operations under decentralization 

Coordination of Staff field activities 

Office of the Chief Counsel: 

Appeals Division 

Civil Division 

Compromise Section 

Interpretative Division 

Penal Division 

Review Division 

Legislation and Regulations Division 

Intelligence Unit 

Conclusion 

STATISTICAL TABLES 

RECEIPTS FROM INTERNAL-REVENUE TAXES 

INCOME-TAX AUDIT 

• Additional income tax assessments on the Commissioner's and 

collectors' lists made during the fiscal year 1940, by tax years - - 103 • Tax items appealed to the United States Board of Tax Appeals during 

the fiscal year 1940 - - 107 

TOBACCO, CIGARS, CIGARETTES, ETC. 

Manufactured tobacco: Number of factories operated, leaf tobacco 

and other materials used, calendar year 1939, by collection districts 

and by States - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

calendar year 1939, by collection districts and by States 

CONTENTS V 

Table Page 

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

export and tax-paid, calendar year 1939, by collection districts and 

by States - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 112 

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

tax-paid, by classes, calendar year 1939, by collection districts and 

by States - - 114 

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

and removed tax-paid for domestic consumption from customs 

bonded manufacturing warehouses, class 6, by classes, calendar 

year 1939 - - 116 

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

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

calendar year 1939, by collection districts and by States - - 117 

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

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

removed for export and tax-paid, calendar year 1939, by collection 

districts and by States - - 118 

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

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

calendar year 1939, by collection districts and by States - - 120 

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

and snuff, calendar years 1930 to 1939 - - 121 

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

calendar years 1930 to 1939 - - 121 

21. Summary of operations of manufacturers of tobacco and cigars, calendar year 1939 - - 122 

22. Exportation in bond of manufactured tobacco, snuff, cigars, and cigarettes, etc., year ended June 30, 1940, by collection districts - - 125 

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

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

year ended June 30, 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 126 

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

from bonded internal revenue tobacco sea stores warehouses, for 

shipment or delivery as sea stores, fiscal year ended June 30, 1940_ _ 127 

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

and cigarettes exported, year ended June 30, 1940, by ports, and 

comparative totals for years ended June 30, 1935 to 1939 - - 127 

26. Domestic and imported cigarette papers and tubes withdrawn and 

internal-revenue receipts from taxes during fiscal years ended June 

30, 1931 to 1940, inclusive - - 127 

27. Tobacco products withdrawn for consumption, computed from collections from the sales of stamps, fiscal year 1940 - - 128 

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

from farmers, calendar year 1939, by collection districts and by 

States - - 129 

29. Leaf tobacco imported by cigar manufacturers, tobacco manufacturers, and dealers in leaf tobacco, calendar year 1939, by collection 

districts and by States - - 131 

30. Quasi tobacco manufacturers classified: Number of factories operated 

and tobacco material handled, calendar year 1939 - - - - - - - - - - - 133 

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

tobacco manufacturers on January 1, 1940, by collection districts 

and by States - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 134 

OCCUPATIONS SUBJECT TO SPECIAL TAXES 

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

stamps covering the fiscal year 1940, or portion thereof, under the 

various annual rates, by collection districts and States 

 - - 

136 

Table 

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

June 30, 1940, by collection districts, States, and Territories - - - - 2. Comparative internal-revenue collections, fiscal years 1939 and 1940, 

by collection districts, States, and Territories_ _ 

3. Summary of internal-revenue collections, year ended June 30, 1940, 

by States and Territories 

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

ended June 30, 1940, by sources 

5. Summary of internal-revenue collections, years ended June 30, 1939 

and 1940, by sources 

6. Total internal-revenue collections, years ended June 30, 1863 to 1940_ 

7. Internal-revenue tax on manufactured products from Philippine 

Islands, fiscal years 1939 and 1940, by objects of taxation 

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

fiscal years 1939 and 1940, by objects of taxation 

Page 

32 

32 

33 

33 

33 

33 

33 

34 

34 

36 

37 

37 

37 

37 

38 

43 

45 

47 

48 

48 

48 

49 

49 

49 

50 

50 

52 

88 

92 

94 

100 

102 

102 

102 

9 

10 

11 

12. 108 

110 
VI CONTENTS 

OLEOMARGARINE, RENOVATED BUTTER, MIXED FLOUR, ETC. 

Table Page 

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

39. Summary of production and tax-paid withdrawals of renovated butter, 

40. Production and withdrawals of mixed flour, year ended June 30, 1940, 

36. Summary of production and withdrawals of oleomargarine (colored 

33. Production and withdrawals of colored oleomargarine, year ended 

34. Production and withdrawals of uncolored oleomargarine, year endect . 

37. Materials used in the manufacture of oleomargarine (colored and un38. Production and withdrawals of renovated butter, year ended June 30, 

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

months, year ended June 30, 1940 - - - - - - - - - - - - - - - - - - - - - 145 

by collection districts - - 145 

years ended June 30, 1931 to 1940 - - - - - - - - - - - - - - - - - - - - - 144 

June 30, 1940, by collection districts - - 142 

June 30, 1940, by collection districts - - 142 

year ended June 30, 1940, by months - - - - - - - - - - - - - - - - - - - 143 

and uncolored), years ended June 30, 1931 to 1940 - - 144 

colored), year ended June 30, 1940 - - 144 

1940, by collection districts - - 144 

ALCOHOL, DISTILLED SPIRITS, BEER, ETC. 

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

1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 146 48. Ethyl alcohol: Plants and bonded warehouses operated, production, 

withdrawals, warehouse losses, and stocks remaining in bonded 

warehouses June 30, by States, fiscal year 1940 - - 

146 

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

year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 147 

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

fiscal year 1940 - - 

147 

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

1940 - - 

148 

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

stocks on hand June 30, by States, fiscal year 1940 - - 

148 

48. Denatured alcohol: Production, by months, fiscal year 1940____1 _ _ _ 149 

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

months, fiscal year 1940 - - 

149 

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

1940 - - 

149 

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

by months, fiscal year 1940 - - 

150 

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

fiscal year 1940 - - 

151 

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

fiscal year 1940 - - 

151 

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

warehouses operated, by States, fiscal year 1940 - - 

152 

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

1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

153 

56. Distilled spirits: Production, by kinds and by States, fiscal year 1940_ 153 

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

year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 154 

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

months, fiscal year 1940 - - 

154 

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

States, fiscal year 1940 - - 

155 

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

by months, fiscal year 1940 - - 

155 

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

by States, fiscal year 1940 - - 

156 

62. Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by States, June 30, 1940 - - 

156 

63. Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by years and seasons of production, June 30, 

1940 - - 157 

CONTENTS 

Table 

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

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

other losses, by kinds of spirits, fiscal year 1940 - - - - - - - - - - - - 

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

fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

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

and by States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - -

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

fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

68. Rectified spirits and wines: Number of plants operated and production, by kinds and by States, fiscal year 1940 - - - - - - - - - - - - - -

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

kinds and by months, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - 

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

kinds and by States, fiscal year 1940 - - 

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

months, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

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

1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

by States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

76. Still wine: Production and withdrawals, by months, fiscal year 1940_ _ 

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

fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

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

alcoholic grades and by States, fiscal year 1940 - - - - - - - - - - - - - - 

79. Still wine: Amelioration and fortification occurring after fermentation, by States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - 

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

fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

82. Sparkling wine: Number of producers, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1940 - - - -

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

by size of container and by States, fiscal year 1940 - - - - - - - - - - - -

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

year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

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

losses, and stocks on hand June 30, by States, fiscal year 1940 - - - -

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

months, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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

States, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

TECHNICAL STAFF 

88. Analysis of the work of the Technical Staff during fiscal year 1940-

Income, profits, estate, and gift tax cases - - - - - - - - - - - - - - - - -

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

agreement cases, fiscal year 1940 - - - - - - - - - - - - - - - - - - - - - - -

OFFICE OF THE CHIEF COUNSEL 

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

those appealed from Board decisions to appellate courts, fiscal year 

1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

91. Appeals Division: Number, and amounts, of cases shown in table 90 

for the fiscal year 1. 940 only, by class of tax and amounts involved_ _ 177 

VII 

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165 

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167 

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169 

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171 

171 

172 

173 

176 

177 

2 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Summary of collections, fiscal years 1939 and 5940—Continued 

General source 

Fisca year Increase, or decrease (—) 

1989 1940 Amount Percent 

Alcohol Tax Unit—Continued. 

Wines, Including fortifying brandy_ $7,754,747.08 $9, 366,706. 29 $1, 611 , 959 . 21 20.8 Fermented malt liquors, excise tax 259, 703,925.76 264,579, 036.03 4, 875, 110.27 1.9 Special, or occupational, taxes 10,789,464. 92 9,484, 261.75 —1, 305, 193. 17 —12. 1 

Total 687, 799, 700.68 624, 253. 156. 11 36, 453,455. 43 6.2 

Miscellaneous Tax Unit: 

Capital stock tax ' 127, 203,008.99 132, 738, 537.17 5,535, 528.18 4.4 Estate and gift taxes 360, 715, 210. 12 360, 071, 166. 94 —644, 043. 18 . 2 Tobacco taxes 

Sales taxes (manufacturers' excise 

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

580,159, 205.79 

534, 738, 304. 48 

608, 518, 443. 59 

583, 595, 3 2.47 

28, 359, 237.85 

48,857,077.9 

4. 9 

9. I Sugar tax 65, 414,058. 42 68, 145, 3

8

57. 56 2,731, 299. 14 4. 2 

Total 

teoounts and Collections Unit: 

1 , 668, 229, 787. 75 1, 753, 068,887. 73 84, 839,099. 98 5.1 

Federal Insurance Contributions 

Act 529,835, 533.76 605, 350, 175.64 75, 514,641.88 14. 3 

Carriers taxes 

Federal Unemployment Tax Act._ 101, 186, 703.68 106, 123, 156. 21 4, 956, 452.53 4.9 109, 426,627. 62 122,047, 643.66 12,621,016.04 11. 6 

Total 740, 428,865. 06 833, 520,975. 51 93,092, 110.45 12.6 

Total, all collections 5, 181, 573,952. 58 5, 340, 452, 346.78 158,878,394.20 3. 1 

Comparative statement of tax collections by quarters, fiscal years 1939 and 1940 

Quarter ended— Income taxes 

Miscellaneous 

Internal-revenue 

taxes 

Employment 

taxestincluding 

carriers taxes 

Total collections 

Sept. 30, 1938 

Dec. 31, $562, 716, 572.51 $666, 232, 573.67 $166,307, 311. 90 $1, 395, 256, 466 08 1938 

Mar. 

550, 793, 594.05 564,886, 260. 76 108, 425, 753.60 1, 281,885, 608.41 31, 1939 603, Ml, 813. 43 508, 504, 711.85 228, 716, 424.38 1, 340, 762, 999.66 June 30, 1939 434, 322, 617. 11 560, 366, 944.14 178, 979, 375.18 1,163, 668,938.43 

Fiscal year 1939 2, 151, 374, 597.10 2, 289, 770, 490. 42 740, 428, 865. 06 5,181, 573,952. 58 

Sept. 30, 1939 

Dec. 31, 1939 

Mar. 

404, 101, 228.59 

385, 483, 116. 55 

735, 155, 042.82 

552, 500,230. 89 

182, 509,499. 71 

192,865,039. 17 

I, 321, 765, 766. 12 

1, 130, 848, 386.62 31, 1990 

rune 80. 1940 

786,069, 685. 99 539,411, 289. 00 252, 002, 566. 66 1, 552, 483, 541. 65 548,944, 895. 78 582, 265,881. 64 206, 143, 874.97 1, 335,354, 852.39 

Fiscal year 1940 2,102, 598,926.92 2,904, 332,444. 35 833, 520,975. 51 5, 340, 452, 396.78 

Nom—Effective July 1, 1938, the rate on distilled spirits (except brandy) was increased from $2 to $2.25 per tax gallon. 

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

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

The taxes on future delivery; production, refining, or processing of crude petroleum: brewers' wort, malt, 

chewing gum, matches (at the one-half cent and 2 cent rates), toilet preparations (at the 5 percent rate), 

furs, phonograph records, sporting goods, and cameras, were repealed as of close of business; June 30, 1938. 

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

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

fiscal years 1939 and 1940. Tables are presented also showing the 

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

Additional assessments.—The additional assessments, including 

interest and penalties, resulting from office audits and field investigations made during the fiscal years 1939 and 1940, were as follows: 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 3 

Class of tax 

Fiscal year 

1939 1940 

Income $279, 487, 977. 51 $291, 198, 664.00 

Miscellaneous internal revenue: 

Estate 59,019, 649. 49 52,350,045.30 

Gift 5, 247, 767.42 6,354,319. 72 

Capital stock 1, 302, 784. 84 1, 732, 327. 10 

Sales 8, 479, 047. 99 4, 561,082. 62 

Liquors 3, 519, 941. 10 3,854, 693.05 

Miscellaneous 19, 183, 519.80 7, 943, 709. 74 

Tobacco 344, 588. 19 122, 703. 57 

Coal 312, 569. 31 424, 504.29 

Silver 18,947.86 26,925.90 

Sugar 4,935.83 197, 251.35 

Total miscellaneous 97, 428, 748. 83 77, 587. 562. 64 

Employment and Carriers taxes 26, 902, 431.93 I 25, 143,458.86 

Grand total 903, 819, 1541. 27 393,909,685. 50 

Includes for income taxes, $284,390,799 from the Income Tax Unit and $6,807,865 from the Accounts and 

Collections Unit. The assessments of the Income Tax Unit include $28,727,135 made under the jeopardy 

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

Includes, for miscellaneous Internal revenue, $66,692,979.59 from the Miscellaneous Tax Unit, $7,019,890 

from the Accounts and Collections Unit, and $3,854,693.05 from the Alcohol Tax Unit. 

Includes for employment and carriers taxes, $6,825,316.86 from the employment tax activities of the 

Accounts and Collections Unit and $18,518,142 from the collectors' offices. 

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

from sums appropriated for such purposes. 

Number of claims paid and the amount of refunds, payments, and repayments, including interest, during the fiscal years 1939 and 1940 

Class of tax 

Number of 

claims Amount refunded or repaid Interest allowed (included 

in amount refunded) 

1939 1940 1939 1940 1939 1940 

Refund of internal-revenue collections: 

Income taxes 136,186 132, 532 $27, 390, 777.03 M6,022,031. 85 $4, 925, 559. 52 $9,155, 587.93 

Miscellaneous Internal-revenue taxes: 

Bituminous coal_ 88 103 2, 336. 27 6, 567. 92 85.50 399.50 

Capital stock, 2,589 2,131 468, 893.14 381,857. 55 33, 308. 59 45,437. 49 

Distilled spirits 7,905 5,902 227, 161. 76 641, 275. 23 2, 813.55 1, 182. 43 

Estate 1,336 1,582 3, 500, 014.05 5,491,478. 11 429,879. 32 880, 308.78 

Gift 580 921 923, 614. 42 3,498, 569.60 117,684. 71 541, 207.97 

Miscellaneous 

tax 340 462 207, 185.45 585, 298. 30 21,035. 75 60, 532. 53 

Narcotics 128 127 218. 17 205.31 

Sales . 1, 202 1, 105 1, 559, 649.47 2,165, 837.45 312, 900. 83 196,916. 29 

Sugar 1,288 1, 537 980,019. 30 1,883, 636. 96 420.56 520.99 

Tobacco 4 9 55.35 573.94 27.03 

Employment taxes: I 

Carriers 626 131 93,413.91 10, 216. 61 187.53 469.73 

Federal Insurance Contributions Act 5,186 5, 665 380, 262 46 548, 219.77 29,602.99 52,572.13 

Federal Unemployment Tax 

Act 15,913 14, 972 1, 382, 517. 67 1,909, 393.72 42,730. 72 56, 243. 52 

Agricultural adjustment 84, 773 49, 027 12, 293,817. 96 11, 503,970. 56 533, 597. 15 1, 918, 310.02 

Total 258,144 215,706 49, 413,686. 40 74, 496,930. 88 6, 449, 586. 72 12,409, 716. 22 

Listed as pay, roll taxes in 1939 report. 

Listed as Social Secur ty, Title VIII. in 1939 report. 

1 Listed as Social Security, Title Ix, in 1939 report. 
4 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 5 

Number of claims paid and the amount of refunds, payments, and repayments, including interest, during the fiscal years 1939 and 1940-Continued 

4-Mon.-There were also refunded from Philippine coconu oil tax collections (trust fund) be amounts of 

$91,359.88, including $3,471.10 interest, covering 700 claim , during the fiscal year 1939, and $175,292.68, 

including $1,054.19 interest, covering 451 claims, during the fiscal year 1940. 

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

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

actual payments made. 

COST OF ADMINISTRATION 

The amount of $59,877,500 was appropriated for the fiscal year 1940 

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

revenue laws. The expenditures and obligations against this appropriation were $59,675,518, leaving an unexpended balance of $201,982. 

The expenditures do not include amounts expended for refunding taxes 

illegally or erroneously collected and for redeeming stamps. The cost 

of collecting a total of $5,340,452,347 during the year was $1.12 per 

$100, compared with $1.13 per $100 for 1939. 

The amount of $4,250,000 was appropriated for the fiscal year 1940 

for salaries and administrative expenses in connection with making 

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

The amount expended and obligated from this fund amounted to 

$3,635,549, leaving an unexpended balance of $614,451. 

Personnel.-A comparative statement of the number of employees 

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

1939, and on June 30, 1940, is given in the following table: 

Branch of service June 30, 

1939 

June 30, 

19 0 

Increase or 

decrea se 

- 

Employees In the departmental service 

Offices of collectors of internal revenue 

Internal revenue agents' forces: 

Income and estate taxes 

Miscellaneous and sales taxes 

Offices of district supervisors 

Miscellaneous field force (Alcohol Tax Unit) 

Supervisors of accounts and collections 

Field force (Intelligence Unit) 

Field force (Assistant General Counsel's Office) 

Field force (Technical Staff) 

Total 

4, 202 

8, 355 

4,804 

47 

4, 147 

17 

46 

298 

179 

528 

13, 993 

28, 376 

24, 834 

61 

i 4, 083 

16 

296 

177 

541 

46 

-209 

21 

30 

14 

-64 -1 

-2 

13 

22, 623 22, 423 -200 

Exclusiver o mporary employees on the internal revenue roll and 483 employees on the refunding processing tax roll. 

2 Exclusive of 548 temporary employees on the internal revenue roll, 251 permanent and 80. temporary 

employees on the refunding processing tax roll. 

11 Exclusive of 27 temporary employees and 459 general deputy collectors on the refunding processing tax roll. 

4Exclusive of 2 temporary employees. 

There were 99 employees retired on annuity during the fiscal year 

1940, of whom 48 were retired on account of disability. 

IMPORTANT LEGISLATIVE AND OTHER CHANGES AFFECTING THE 

BUREAU DURING THE FISCAL YEAR 1940 

Public, No. 242, approved July 28, 1939, amends the Bankruptcy 

Act by conferring original jurisdiction on courts of bankruptcy with 

respect to any proceeding initiated by the filing of a petition on or 

before July 31, 1940, with respect to modifications of the securities 

or capital structures of railroads; provides that the provisions of sections 1801, 1802, 3481, and 3482 of the Internal Revenue Code shall 

not apply to the issuance, transfer, or exchange of securities or the 

making or delivery of conveyances to make effective any plan or 

adjustment confirmed under the Act; that no income, gain, or profit 

taxable under any law of the United States or of any State shall in 

respect to the adjustment of the indebtedness of any petitioner be 

deemed to have accrued or to have been realized by such petitioner 

by reason of a modification of or cancellation in whole or part of the 

indebtedness of a petitioner affected by such proceeding; gives the 

court power to determine the amount and legality of claims of the 

United States for taxes and to order payment thereof, the order of 

the court to have the effect of adjudication of bankruptcy of the 

petitioner for the purpose of section 274 of the Internal Revenue 

Code; and suspends the running of the statute of limitations on the 

assessment or collection of any internal revenue tax while a proceeding under the Act is pending and until it is finally dismissed. 

Public, No. 259, approved August 4, 1939, amends the Merchant 

Marine and Shipping Acts to provide for the exemption from Federal 

income taxes of the gain resulting from the transfer of an obsolete 

vessel to the Commission under the provisions of the Act, and for an 

adjustment of the basis for gain or loss upon a sale or exchange and 

for depreciation of a new vessel acquired in connection with such 

transfer. 

Public, No. 264, approved August 4, 1939, authorizes the Commissioner to make certain allowance for loss by leakage and evaporation upon withdrawal of packages of brandy or fruit spirits filled from 

storage tanks prior to June 26, 1936. 

Public, No. 334, approved August 7, 1939, amends section 2857(a) 

of the Internal Revenue Code by eliminating the requirement that 

records of receipt and disposition of distilled spirits be kept by wholesale liquor dealers who are such dealers only by reason of their dealings 

in wine at wholesale, but do not deal in distilled spirits at wholesale. 

Public, No. 361, approved August 9, 1939, provides additional 

time for the filing of claims for refund of taxes paid under the Bankhead Cotton Act, the Kerr Tobacco Act, and the Potato Act of 1935. 

Public, No. 379, Social Security Act Amendments of 1939, approved 

August 10, 1939, comprehensively amends the Social Security Act and 

the tax provisions of that Act which were incorporated in the Internal 

Revenue Code. The most important changes made in the taxes under 

subchapter A of chapter 9 of the Code are the reduction of the rate on 

both employers and employees for the years 1940, 1941, and 1942 from 

1% percent to 1 percent; the extension of coverage, effective January 

1, 1940, to services of seamen on American vessels and of employees of 

Class of tax 

Number of 

claims Amount refunded or repaid Interest allowed (included 

in amount refunded) 

1939 1940 1939 1940 1939 1940 

Repayments (not refund 

of taxes erroneously 

collected): 

Redemption of 

stamps: 

Distilled spirits__ 2, 268 2,112 $60, 113. 39 $59, 232. 68 $1, 016. 26 $597.80 Miscellaneous__ 2,360 1,984 379, 239. 13 215, 588. 17 96, 310. 52 18,892.44 Narcotics 101 57 1, 098. 79 218. 43 Silver 3 2 104. 61 55. 00 Tobacco 1, 746 1,985 1, 338, 945. 73 1, 832, 670.38 

Total 6,478 6,140 1, 779, 501.60 2,102, 769.66 47. 326. 78 19, 990. 24 

Drawbacks: 

Alcohol 656 640 178, 157.78 177, 189. 98 

Tobacco 13 17 2, 736. 83 3.823.77 

Total 669 657 178,894. 41 181, 013. 25 

Grand total__ 265, 291 222, 503 51, 372, 082. 41 76, 730, 708.79 6, 996, 913. 50 12, 429, 206.46 
6 REPORT OF COMMISSIONER OF INTERNAL REVENITE 

certain Federal and State instrumentalities (chiefly bank employees); 

the removal, effective January 1, 1939, of the previous exemption of 

services by individuals after they attain age 65; and the provision 

for refund to an employee who because he has two or more employers 

pays tax on more than $3,000 of wages earned in any year after 1939. 

With respect to the tax under subchapter C of chapter 9 of the Code, 

the major changes are the measurement of the tax for 1939 and subsequent years by "wages paid" as distinguished from "wages payable" 

under the prior law; the limiting of the application of the tax to the 

first $3,000 paid after 1939 to an employee by an employer for services 

rendered in any calendar year; the liberalization of the conditions bf 

allowance of credit against the Federal tax for 1939 and subsequent 

years for contributions paid to State unemployment funds; and the 

extension of coverage, effective January 1, 1940, to services of employees of certain Federal and State instrumentalities (chiefly bank 

employees). The amendments also provide for the liberalization of 

the conditions of allowance of credit against the Title IX tax for the 

years 1936, 1937, and 1938 for contributions paid to State unemployment funds. Effective January 1, 1940, certain services previously 

taxable are exempt from the taxes under subchapters A and C of 

chapter 9 of the Code, principally services in the field of agricultural 

labor, certain services performed in the employ of nonprofit organizations exempt from income tax, and certain services performed by 

students and newsboys. Public, No. 379, also extends the time for 

filing claims for payment with respect to floor stocks, held on January 

6, 1936, of certain articles processed from commodities subject to the 

processing tax under the Agricultural Adjustment Act. 

Public, No. 654, approved June 24, 1940, amends sections 2803(c) 

and 2903 of the Internal Revenue Code to remove unnecessary restrictions upon the redemption of red strip stamps for containers of 

distilled spirits and to authorize the redemption of case and strip 

stamps for containers of spirits bottled in bond. 

Public, No. 655, approved June 24, 1940, amends sections 3030(a) 

(1)(A) and 3031(a) of the Internal Revenue Code as of July 1, 1940, 

to eliminate the tax of 10 cents per proof gallon imposed on spirits 

used in the fortification of wines, and to compensate for the loss of 

revenues thereby occasioned by increasing by 5 cents per gallon the 

tax on all wines containing more than 14 percent and not exceeding 

24 percent of absolute alcohol by volume. The Act likewise amends 

section 3030(a) (2) of the Internal Revenue Code to correct a clerical 

error made in the Liquor Tax Administration Act, approved June 

26, 1936, where the tax on artificially carbonated wine was fixed at 

"1Y4cents on each one-pint or fraction thereof." The words underscored, descriptive of the quantitative basis of the tax, should have 

been "one-half pint." 

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

amends the Internal Revenue Code by increasing the rate of tax on 

corporations; increasing individual surtax rates; increasing the rates 

of tax on nonresident alien individuals; increasing the taxes on distilled spirits, wine, fermented malt liquor, etc., and on certain occupations; amending the withholding of tax at source provisions to 

conform to the rates on nonresident alien individuals and foreign corporations; decreasing the personal exemption; changing the requirement for filing returns in the case of individuals and fiduciaries to deREPORT OF COAIADRSIaNER OF INTERNAL REVENUE 

pend on the amount of gross income rather than net income; amendir 

the provision relating to information returns to conform to the r 

quirement for filing individual returns; and imposing in addition 1 

the increase in individual and corporate income tax rates a flat tax 

10 percent of the tax computed under the Internal Revenue Code, 

amended, designated as a "Defense Tax," effective for a 5-year perioi 

This Act also increases by 10 percent for a 5-year period the exces 

profits, capital stock, estate and gift taxes, and tax on transfers I 

avoid income taxes. The Act continues in effect until June 30, 194 

certain of the manufacturers' excise taxes and miscellaneous taxi 

which would have terminated on June 30 or July 31, 1941. It ale 

increases the rate of numerous miscellaneous taxes and lowers certai 

exemptions applicable to the miscellaneous taxes. The Act also pri 

vides that the 10 percent defense tax shall be set aside as a specs, 

fund which shall be available only for retirement of obligations ai 

thorized by the Act to the extent of $4,000,000,000, the proceeds 

which are to be used for the national defense. The Public Sala/ 

Tax Act of 1939 was amended to relieve certain individuals receivir 

compensation paid indirectly by the United States from penalties di 

to failure to make return and pay tax due. 

Public, No. 671, approved June 28, 1940, amends section 3 of tl 

Act of March 27, 1934 (48 Stat. 505), as amended by the Acts of Jur 

25, 1936 (49 Stat. 1926), and April 3, 1939 (53 Stat. 560; U. S. ( 

Supp., V, Title 34, sec. 496), and as made applicable to contracts fE 

aircraft or any portion thereof for the Army by such Act of April , 

1939, to limit to June 30, 1942, the allowable profit on naval vessels 

Army or Navy aircraft or portions thereof to 8 per centum of tl 

contract price, or 8.7 per centum of the cost of performing the contras 

or subcontract on other than prime contracts made on a cost-plus-, 

fixed-fee basis, in lieu of 10 percent and 12 percent specified in Publi 

No. 18, approved April 3, 1939. It limited the application of tl 

Act to the period of the national emergency declared to exist by tl 

President on September 8, 1939, and to those contracts and subco 

tracts in which the award exceeds $25,000. Provision was also mac 

for charging against a contract or subcontract a percentage of ti 

cost of special additional equipment and facilities acquired to facil 

tate, during the national emergency, the completion of naval vesse 

or Army or Navy aircraft or portions thereof in private plants pu 

suant to a certification to be made to the Commissioner by the Seca 

tary of War or the Secretary of the Navy, as the case may be, aft 

agreement with the contractor or subcontractor. Such certificatio 

is to be made under regulations prescribed by the President and 

required to state the necessity for such special additional equipmer 

and facilities, the cost thereof, and the percentage of the cost to 

charged against the contract or subcontract. 

The practical operation of the plan of decentralizing the determ 

nation of income, profits, estate, and gift tax liabilities, consummate 

during the fiscal year 1939, has been further perfected and standardize 

during the past fiscal year. In continuation of this policy, the juri, 

diction to handle a substantial volume of the offers in compromise E 

income, profits, and unjust enrichment taxes, including cases arisin 

-under the Vinson Act and other similar legislation, and certain relate 

offers of other taxes, under section 3761 of the Internal Revenue Cod 

.(formerly Revised Statutes 3229) was delegated, with the approval ( 
8 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

the Secretary, to the Technical Staff field divisions on September 

6, 1939. 

Under the provisions of section 4 of Public Resolution No. 75, 

Seventy-sixth Congress, approved June 4, 1940, section 2 of Reorganization Plan No. III, transmitted to the Congress by the President on April 2, 1940, became effective June 30, 1940. In conformity 

with Order No. 30 of the Secretary of the Treasury, issued June 12, 

1940, pursuant to the plan of reorganization referred to, the functions 

heretofore performed by the Federal Alcohol Administration, the 

Administrator and officers thereof, are administered by the Deputy 

Commissioner of Internal Revenue in charge of the Alcohol Tax 

Unit, under the supervision of the Commissioner of Internal Revenue 

and the Secretary of the Treasury. 

ACCOUNTS AND COLLECTIONS UNIT 

The Accounts and Collections Unit is the central administrative 

organization for the 64 internal-revenue collection districts and makes 

the administrative audit of all expenditures for the Internal Revenue 

Service. The Unit also administers the taxes imposed under Chapter 

9 of the Internal Revenue Code, the taxes under Subchapter A being 

with respect to employment by others than carriers, Subchapter B 

with respect to employment by carriers, and Subchapter C with 

respect to the tax on employers of eight or more. Since enactment 

of the Social Security Act Amendments of 1939 (Public, No. 379, 

approved August 10, 1939), Subchapter A of Chapter 9 of the Code 

has been known as the Federal Insurance Contributions Act and 

Subchapter C as the Federal Unemployment Tax Act. Prior to 

enactment of the Internal Revenue Code the provisions of Subchapters A, C, and B of Chapter 9 were contained in Titles VIII 

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

of 1937, respectively, and the taxes imposed thereunder are now 

generally designated as "Employment taxes." 

There were 19,199,932 tax returns filed in collectors' offices during 

the fiscal year 1940, an increase of 1,491,075 over the previous year. 

Of the total returns filed, 8,988,412 were income tax returns, an increase of 1,416,729 during the year. The increase in tax returns filed 

may be largely attributed to the Public Salary Tax Act under which 

employees of States and political subdivisions thereof were required 

to file income tax returns. 

A total of 13,351,512,052 revenue stamps, valued at $1,188,107,282, 

was issued to collectors of internal revenue and the Postmaster General during the year, compared with 12,594,476,279 stamps, valued at 

$1,144,003,042, issued during 1939. 

Revenue stamps returned by collectors of internal revenue and by 

the Postmaster General, and credited to their accounts, amounted to 

$31,206,229. There were 390 applications allowed for restamping 

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

destroyed, compared with 431 applications in the preceding year. 

During the year 34,774 income tax, 4,700 miscellaneous tax, and 

77,472 employment tax returns were investigated by field deputy 

collectors, and 10,505,875 information returns were verified. At the 

close of business June 30, 1940, there were outstanding in the 64 collection districts, for field investigation, 3,212 income tax returns, comREPORT OF COMMISSIONER OF INTERNAL REVENUE 9 

pared with 5,205 as of June 30, 1939. The number of information 

returns on hand June 30, 1940, was 5,315,926, compared with 6,026,786 

as of June 30, 1939. On June 30, 1940, there were 212,701 warrants 

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

compared with 205,980 as of June 30, 1939. 

Collectors of internal revenue, after having taken the necessary 

administrative action, transmitted to the Bureau or otherwise disposed of 249,007 claims, as compared with 312,429 claims in 1939, a 

decrease of 63,422. The number of claims on hand in collectors' 

offices at the end of the fiscal year was 14,126, compared with 22,627 

at the close of the previous fiscal year. 

During the year 379,228 warrants for distraint were served by field 

deputy collectors of internal revenue, which resulted in the collection 

of $52,220,175. An average of 2,718 producing field deputy collectors 

made a total of 1,622,104 revenue-producing investigations, including 

the serving of warrants for distraint, compared with 1,889,579 such 

investigations made by an average of 2,704 producing field deputy 

collectors in the preceding year. The total amount collected and 

reported for assessment by field deputy collectors was $84,566,072, 

as compared with $97,826,243 in the previous year. The average 

number of investigations made per field deputy and the average 

amount of tax collected and reported for assessment were 597 and 

$31,113, respectively, as compared with 699 and $36,178 in 1939. 

The supervisors of accounts and collections submitted 113 reports 

covering their examination of the accounts of collectors of internal 

revenue during the year, compared with 115 reports submitted during 

1939. Every collector's office was examined at least once, and all but 

18 of the collectors' offices were examined twice during the year. The 

internal-revenue stamps in the office of the United States internalrevenue stamp agent for the Philippine Islands were verified twice 

by the auditor general for the Philippines during the year. Four ' 

new collectors and two acting collectors were installed during the 

fiscal year. Nine collectors' offices were transferred under renewal 

bonds and one under confirmation bond. 

In administering the personnel of the several collection districts the 

provisions of the Classification Act of 1923 and amendatory Acts, 

and decisions of the Comptroller General relating thereto, have been 

closely adhered to. The policy has been continued of making such 

appointments as have been authorized in the field collection serviceat the minimum salary rate of the appropriate grade and all applications for positions have been carefully scrutinized and investigated 

with a view to maintaining the usual high standard of requirement 

for employment. The Disbursement Accounting Division administratively examined 

and recorded 1,553 monthly accounts of collectors of internal revenue, 

internal revenue agents in charge, district supervisors, including the 

Philippine branch of the district of Maryland, the internal revenuesalary payments made by the special disbursing agent, San Juan, 

P. R., and the special disbursing agent, Paris, France, comprising a . 

total of 127,646 vouchers, in addition to which 8,351 expense vouchers 

of employees and 14,015 vouchers covering passenger and freight 

transportation and miscellaneous expenses were audited and passed' 

to the Chief Disbursing Officer, Treasury Department, or General' 

Accounting Office for payment. 
10 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Assessments of employment taxes .—During the year 5,479 assessment 

lists, an increase of 423 over the previous year, consisting of 8,049,247 

items totaling $785,973,246, were approved by the Commissioner. 

These lists included original and additional assessments of taxes under 

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

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

Included in this total were 1,631 lists prepared by the collectors' 

offices and adjusted by the Bureau, consisting of 8,004,830 items 

totaling $779,347,929, and 3,848 lists prepared in the Bureau, consisting of 44,417 items totaling $6,625,317, as further analyzed in the 

following tabulations: 

Analysis of employment tax assessments appearing on collectors lists 

Sources Items Tax and penalty Interest Total 

Federal Insurance Contributions Act - - - - - 

Federal Unemployment Tax Act - - - - - - - - Carriers taxes - - - - - - - - - - - - - - - - - - - - - -

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

7,606, 

365, 

32, 

764 

133 

933 

$572, 

82, 

123, 

534, 

340, 

652, 

357.08 

705. 83 

057.71 

$509, 

295, 

15, 

893.62 

443. 78 

471.00 

$573, 

82, 

123, 

044, 

636, 

667, 

250.70 

149. 61 

528. 71 

8,004, 830 778, 527, 120. 62 820, 808.40 779, 347, 929. 02 

Analysis of employment tax assessments appearing on Commissioner's lists 

Sources Items Tax Penalty Interest Total 

Federal Insurance Contributions Act_ 

Federal Unemployment Tax Act____ 

Carriers taxes - - - - - - - - - - - - - - - -

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

18, 

25, 

718 

628 

71 

$977, 

4,509, 

247, 

652. 

399. 

543. 

39 

33 

94 

$125, 

328, 

582.94 

536. 19 

17. 39 

$50, 

365, 

20, 

922. 91 

000. 61 

661. 16 

$1, 

5, 

154, 

202, 

268, 

158. 24 

936. 13 

222.49 

44, 417 5,734, 595. 66 454, 136. 52 436, 584.68 6,625, 316. 86 

Taxes under the Federal Insurance Contributions Act.—Collections 

of taxes imposed under the Federal Insurance Contributions Act 

amounted to $605,350,176 for the year, as compared with $529,835,534 

for 1939, an increase of $75,514,642. These amounts include both the 

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

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

Act are required on a quarterly basis, 7,868,402 being filed during the 

fiscal year, as compared with 7,520,711 filed in the preceding year. 

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

in the offices of collectors of internal revenue. 

The following table sets forth information relative to claims disposed 

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

of the Social Security Act: 

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

Social Security Act received and disposed of during the fiscal year 1940 

Number 

5, 180 

15, 307 

342 

20, 829 

14,391 

3,597 

197 

18, 185 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 11. 

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

Social Security Act received and disposed of during the fiscal year 1940—Con. 

Overassessments settled by: Amount 

Abatement - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $810, 583. 44 

Credit - - - - - - - - - - - - - - - - - - - - 70, 554. 57 

Refund - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 467, 614. 03 

Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 348, 752. 04 

Interest - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 49, 556. 04 

Grand total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 398, 308. 08 

NOTE.—The amount involved in claims filed during the year 1940 was 81,364,682.99. Included in the 

allowed claims shown in the above tabulation were 6,206 collectors' claims for abatement, of which 160 were 

multiple-item claims involving 3,953 items. There were also allowed 372 collectors' claims recommending 

refunds of $7,963.14 plus interest of $298.05. The amount involved in the claims rejected during the year 

totaled $295,138.17. 

Offers in compromise.—On July 1, 1939, there were on hand 51 offers 

in compromise, aggregating $4,876, which had been submitted in 

settlement of an aggregate liability of $14,458 incurred under Title 

VIII of the Social Security Act. There were 267 offers received, in 

the total amount of $39,626, involving an aggregate tax liability of 

$118,465 incurred under Title VIII of the Social Security Act and/or 

the Federal Insurance Contributions Act; 121 offers in the amount of 

$9,931 were accepted in settlement of tax liability of $27,010; 68 

offers, amounting to $7,744 and involving tax liability of $34,449, were 

rejected, leaving on hand at the close of the year, 129 offers totaling 

$26,827 and involving tax liability of $71,464. 

Coordination with Social Security Board.—The Bureau and the 

Social Security Board continued to coordinate their decisions on 

questions involving provisions common to Title II of the Social 

Security Act and the Federal Insurance Contributions Act. At the 

beginning of the fiscal year, 77 inquiries from the Board relating to 

such provisions were pending before the Bureau. During the fiscal 

year, 613 similar inquiries were received from the Board, and 512 were 

disposed of, leaving 101 pending at the close of the fiscal year. Copies 

-of 423 opinions of the general counsel of the Federal Security Agency 

were furnished to the Bureau, and copies of 90 opinions of, or rulings 

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

the Federal Security Agency. 

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

Federal Unemployment Tax Act is imposed on employers of eight or 

more. The rate is 3 percent on taxable wages paid during 1939 with 

respect to employment. Collections amounted to $106,123,156, as 

compared with $101,166,703 for the fiscal year 1939, an increase of 

$4,956,453. There were 367,670 returns filed during the fiscal year, 

as compared with 367,235 filed during the preceding fiscal year. 

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

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

Against the tax imposed by the Act, a taxpayer is entitled to a credit 

(not exceeding 90 percent of the tax) for contributions paid to unemployment funds under a State law approved and certified by the Social 

'Security Board to the Secretary of the Treasury. With certain 

exceptions the contributions, to be allowable as credit, must be paid 

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

to be filed. The Social Security Act Amendments of 1939, enacted 

August 10, 1939, extended the time within which contributions could 

Claims: 

Pending at beginning of year - - - - - - - - - - - - - - - - - - - - - -

Filed during year (new claims) - - - - - - - - - - - - - - - - - - - - 

Received from other sources - - - - - - - - - - - - - - - - - - - - - - 

Total to be disposed of - - - - - - - - - - - - - - - - - - - - - - - - 

Allowed in full or in part - - - - - - - - - - - - - - - - - - - - - - - - 

Rejected - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Canceled - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

Total disposed of - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

Pending at end of year - - - - - - - - - - - - - - - - - - - - - - - - - - 2 644 Certificates of allowance issued when no claims were filed__ _ 5,

, 

 32] 
12 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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

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

inclusive, the amendments provide that contributions paid before the 

sixtieth day after enactment could be allowed as credit. For the 

year 1939 it is provided that contributions may be credited against the 

Federal tax, in addition to contributions paid on or before the last day 

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

before July 1 next following. However, with respect to contributions 

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

before July 1 next following, the taxpayer may only credit an amount 

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

allowable as credit on account of such contributions had they been 

paid on or before such last day. 

The amendments made a further important change in the law, 

beginning with the year 1939, by imposing the tax on a wages "paid" 

basis as distinguished from a wages "payable" basis as used in the 

prior years. Beginning with January 1, 1940, numerous changes 

were made by the amendments in exemptions from the tax, excepted 

services, and the amounts which constitute taxable wages. 

For the calendar year 1939 unemployment compensation laws of 

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

and Hawaii were approved and certified to the Secretary of the 

Treasury by the Board. 

For the purpose of enabling the Bureau to determine whether the 

amount of credit claimed by a taxpayer for contributions to a State 

fund is correct, each State furnished the Bureau with a statement for 

each employer, showing the amount of contributions paid by the 

employer on or before the date the Federal return is required to be 

filed and the amounts and dates of payments made thereafter. During 

the fiscal year 1940 there were received from the States 1,172 such 

statements for the year 1936, 4,446 for 1937, 55,564 for 1938, and 

440,888 for 1939. 

In addition to the credit against the Federal tax for contributions 

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

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

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

the employment of his employees in a State, he is granted a "merit 

rate" under the laws of the State and is thereby permitted to pay 

contributions at a lower rate than that paid generally by other 

employers. Certain conditions with respect to a State law are imposed 

by the Act that must be met before an employer is entitled to the 

additional credit. For the calendar years 1938 and 1939 the State of 

Wisconsin was the only State having a law that complied with the 

conditions imposed by the Act. For the year 1938 there were 110 

employers with employment in that State who were granted a "merit 

rate," and for the year 1939, 2,804. 

Field investigations conducted by the States in connection with the 

administration of State unemployment laws resulted in numerous 

correction statements being submitted to the Bureau, showing 

changes in the amounts standing to the employers' credit in the State 

funds. This caused a considerable number of cases to be reopened for 

audit by the Bureau. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 13 • 

Number of Federal unemployment tax returns (annual) received, reopened, and disposed of by the Bureau during the fiscal year 1940 and the number pending at the 

beginning and close of the year, by tax years 

Tax year 

On hand 

July 1, 

1939 

Received 

during 

year 

Reopened 

during 

year 

Total 

Disposed 

of during 

year 

On hand 

June 30, 

1940 

1936 - - - - - - - - - - - - - - - - - - 2, 984 5, 424 9, 999 18, 407 16, 846 1, 561 

1937 - - - - - - - - - - - - - - - - - - 39, 378 15, 241 19, 479 74, 098 61, 829 12, 269 

1938 - - - - - - - - - - - - - - - - - - 308,789 20,248 19, 512 348,549 323, 906 24,643 

1939 - - - - - - - - - - - - - - - - - - None 326, 757 None 326, 757 None 326, 757 

Total - - - - - - - - - - - - 351, 151 387,670 48, 990 767, 811 402, 581 365, 230 

The Bureau submitted 249 returns to the field for investigation 

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

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

following table: 

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

1940 and the number pending at the beginning and close of the year, by tax years 

Tax year 

On hand 

July 1, 

Received 

during Total 

Disposed 

of during 

On hand 

June 30, 

1939 year year 1940 

1936 304 2, 272 2, 576 2,506 70 

1937 1, 101 4,141 5,242 4, 845 397 

1938 None 4, 382 4, 382 3,542 840 

Total - 1, 405 10, 795 12, 200 10, 893 I, 307 

Of the total of 10,893 revenue agents' reports disposed of during the 

year, 1,904 were closed showing no change in tax liability, 7,777 showing deficiencies in tax amounting to $1,158,859, and 1,212 showing 

overassessments of $216,205. 

The following table sets forth information relative to claims adjusted and certificates of overassessment or of allowance issued under 

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

Security Act: 

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

Security Act received and disposed of and certificates of overassessment issued 

during the fiscal year 1940 

Claims: 

Pending at beginning of year - - - - - 

Filed during year (new claims) - - - - - - - - - - - - - - - - - - - -

Received from other sources - - - - - - - - - - - - - - - - - - - - - 

Total to be disposed of - - - - - - - - - - - - - - - - - - - - - - - 31, 476 

Allowed in full or in part - - - - - - - - - - - - - - - - - - - - - - - - 18, 074 

Rejected - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4, 534 

Canceled - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 250 

Total disposed of - - - - - - - - - - - - - - - - - - - - - - - - - - - 22, 858 

Pending at end of year - - - - - - - - - - - - - - - - - - - - - - - - - 8, 618 

Certificates of overassessment and certificates of allowance 

issued when no claims were filed - - - - - - - - - - - - - 7, 829 

Number 

8, 439 

22, 984 

53 
Claims: 

Pending at beginning of year - - - - - - - - - - - - - - - - - - - - - - -

Filed during year (new claims) - - - - - - - - - - - - - - - - - - - - - 

Received from other sources - - - - - - - - - - - - - - - - - - - - - - -

Total to be disposed of - - - - - - - - - - - - - - - - - - - - - - - - - 

Number 

92 

273 

9 

374 

14 REPORT OF COMMISSIONER OF INTERNAL REVENUE • REPORT OF COMMISSIONER OF INTERNAL REVENUE 15 • 

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

Security Act received and disposed of and certificates of overassessment issued' 

during the fiscal year 1940—Continued 

Overassessments settled by: Amount 

Abatement - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $2, 338, 112. 84 

Credit - - - - - - - - - - - - - - - - - - - - - - - - - - - 65, 235. 65 

Refund - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 833, 301. 74 

Total 4, 236, 650. 23• 

Interest - - - -54, 178. 86 

Grand total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4, 290, 829. 09. 

NOTE.—The amount involved in claims filed during the year 1940 was $4,891,260.46. Included in the , 

allowed claims shown in the above tabulation were 3,051 collectors' claims for abatement, of which 38 were 

multiple-item claims involving 613 items. There were also allowed 4,665 collectors' claims recommending 

refunds of $65,886.79, plus interest of $1,715.59. The amount involved in the claims rejected during the year totaled $527,414.21. 

Offers in compromise.—On July 1, 1939, there were on hand 81 offers 

in compromise, aggregating $8,226, which had been submitted in settlement of an aggregate liability of $46,454, incurred under Title IX 

of the Social Security Act. There were 222 offers received, in the 

total amount of $28,895, involving an aggregate tax liability of 

$191,992, incurred under Title IX of the Social Security Act and/or 

the Federal Unemployment Tax Act; 74 offers in the amount of 

$6,364 were accepted in settlement of tax liability of $36,731; 127 

offers, amounting to $14,249 and involving tax liability of $96,232, 

were rejected, leaving on hand at the close of the year 102 offers totaling $16,508 and involving tax liability of $105,483. 

Carriers taxes (Chapter 9, Subchapter B, I. R. C.).—Collections of 

employers' tax and employees' tax under Chapter 9, Subchapter B, of 

the Internal Revenue Code (employment by carriers) aggregated 

$122,037,661, as compared with $109,419,458 for the previous year, 

an increase of $12,618,203. Each tax was imposed at the rate of 2% 

percent of the taxable compensation earned during 1939, and at the 

rate of 3 percent earned during 1940. Collections of employee representatives' tax, which was imposed at the rate of 5% percent of the 

taxable compensation earned during 1939, and at the rate of 6 percent 

earned during 1940, amounted to $9,982, as compared with $7,169 for 

the previous year, an increase of $2,813. Returns are required on a. 

quarterly basis, 31,915 being filed by employers and 1,698 by employee 

representatives, an increase of 1,294 and 291, respectively, over the. 

previous year. The complete and final audit of these returns is conducted in the offices of collectors of internal revenue. 

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

and/or the Carriers Taxing Act of 1937: 

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

Taxing Act of 1937 received and disposed of during the fiscal year 1940 

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

Taxing Act of 1937 received and disposed of during the fiscal year 1940—Con. 

Claims—Continued. Number 

Allowed in full or in part - - - - - - -257 

Rejected • 56 

Canceled - - - - - - - -17 

Total disposed of - - - - - - -330 

Pending at end of year - - - - - - - 44 

Certificates of allowance issued when no claims were filed - - - - - - - -21 

Overassessments settled by: Amount 

Abatement - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $104, 737. 36 

Credit - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 115, 095. 14 

Refund - - - 8, 794. 11 

Total - - - -228, 626. 61 

Interest - - - - 405. 57 

Grand total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 229, 032. 18 

NOTE.—The amount involved in claims filed during the year 1940 was $168,245. Included in the allowed 

claims shown in the above tabulation were 50 collectors' claims for abatement. There were also allowed 4 

collectors' claims recommending refunds of $940.27, plus interest of $63.72. The amount involved in the 

claims rejected during the year totaled $56,279.07. 

Coordination with Railroad Retirement Board.—The Bureau and the 

Railroad Retirement Board continued to coordinate their decisions on 

questions involving provisions common to the Railroad Retirement 

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

amended. At the beginning of the fiscal year, 2 inquiries from the 

Board relating to such provisions were pending before the Bureau. 

During the fiscal year, 13 similar inquiries were received, and 12 were 

disposed of, leaving 3 pending at the close of the year. Copies of 263 

opinions of the General Counsel of the Railroad Retirement Board 

were furnished to the Bureau and copies of 18 opinions of, or rulings 

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

the Board. 

INCOME TAX UNIT 

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

administration of the internal-revenue laws with reference to taxes 

on income , excess profits of corporations, excess profits on Navy and 

National f3ee nse Act contracts, unjust enrichment tax, and refunds 

of certain processing taxes. The administration includes interpretative instructions and rulings regarding the provisions of the revenue 

laws relating to such taxes and the verification and adjustment of 

the returns through audits and field investigations for the purpose of 

securing the correct determination of tax liabilities as required by law.' 

INCOME AND EXCESS-PROFITS TAXES 

Collections.—During the fiscal year 1940, collections of income and 

excess-profits taxes amounted to $2,121,073,129. This compares 

with $2,178,430,970 collected in the fiscal year 1939, a decrease of 

$57,357,841, or 2.6 percent. The comparison in detail is as follows: 

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

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

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

Unit. 
16 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Collections during the fiscal years 1939 and 1940 

Source 

Fiscal year 

increase or 

decrease 

1939 1940 

Corporation income tax: ' 

Currenteelleetions 2 $963,353,166 $958, 260, 442 -$5, 092,724 

Back collections 159, 187, 635 162, 321, 108 3, 133;473 

Total 1, 122, 540, 801 1,120, 581, 550 -1, 959, 251 

Excess-profits tax: 

Current collections 2 24, 484, 167 15, 388, 825 -9, 095, 342 

Back collections 2 2, 572 206 3, 085, 378 513, 172 

Total 27, 056, 373 18, 474, 203 -8, 582, 170 

Individual income tax: 

Current collections 2 937, 380, 280 891, 754,121 -45, 626,159 

Back collections 2 91,453, 516 90, 263, 255 -1,190, 261 

Total 1, 028, 833, 796 982, 017, 376 -46, 816, 420 

Total income and excess-profits tax 2, 178, 430, 070 2, 121,073, 129 -57,357,841 

Unjust enrichment taxes 6, 683, 335 8, 536,178 1, 852, 843 

Grand total 2, 185, 114, 305 2,129, 609, 307 -55, 504, 908 

The corporation income tax collections for the fiscal year 1939 include 59 775 and for the fiscal year 1940 

include $2,931 paid by the Alaska Railways under sections 1300 and 1301 of the Internal Revenue Code. 

This figure differs from the corresponding item in the report for the fiscal year 1939, due to the fact that the 

income tax collections of $9,775 paid by the Alaska Railway were omitted from this item but were included 

in the grants total. In addition, these collections also include tax withheld at source under sections 143 

and 144 of the Internal Revenue Code, and reported by withholding agents, although much of this tax was 

withheld from taxpayers other than corporations. The exact amount of these collections cannot be stated 

as it has not been tabulated separately. 

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

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

Returns filed.-The number of all types of income tax returns filed 

during the past fiscal year on which tax was assessed was 4,324,275, 

compared with 3,439,041 returns filed in the fiscal year 1939,' an 

increase of 885,234, or 25.7 percent. In addition, 4,664,137 taxpayers filed 'returns during the fiscal year 1940 showing no income 

subject to tax, compared with 4,132,592 such returns for the preceding 

fiscal year. The total number of income tax returns filed by individuals was 7,840,079, which is larger than the number filed in any 

previous fiscal year in which substantially similar filing requirements 

existed. Details on the number of returns filed are as follows: 

Income tax returns of 

Fiscal year 

1939 2 1940 

Taxable Nontaxable Total Taxable Nontaxable Total 

Individuals I 3,099, 449 3, 314, 864 6,414, 313 3, 970, 543 3, 869, 536 7, 840,079 

Domestic and foreign corporations 170,547 373, 149 543,696 200,715 340,220 540,935 

Personal holding companies 654 5, 767 6,421 397 5, 471 5,868 

Nonresident alien individuals... 101, 339 (2) 101,339 73, 783 (2) 73, 783 

Withholding agents for tax withheld at source 15, 167 (2) 15, 167 14, 928 (2 ) 14, 928 

Fiduciaries 51, 88.5 160, 393 212, 278 63, 909 157, 376 221,285 

Partnerships 277,573 277, 573 290, 704 290,704 

All other 896 896 830 830 

Total 3,439,041 4, 132, 642 7, 571, 683 4, 324, 275 4, 664, 137 8,988, 412 

1 Includes 1,831,331 taxable and 2,228,063 nontaxable Forms 1040-A ft ed during the fiscal year 1939 and 

2,465,118 taxable and 2,748,046 nontaxable Forms 1040-A filed during the fiscal year 1910. In the 1930 report 

the taxable fiduciary returns were included with returns of individuals, whereas in this report these returns 

are shown separately. 

2Reported with the taxable returns. 

Returns of nontaxable fiduciaries and partnerships and the group designated "All other" are included 

in this table for the first time and, therefore, the total nontaxable returns shown as filed for 1939 Is larger 

than the corresponding item in the 1939 report by the number of such returns. 

' Including in each fiscal year the delinquent returns filed during that year relating to prior years. 

REPORT OF COMMISSIONER OF INTERNAL. REVENUE 17 

Examination of income tax returns upon receipt by the Income Tax 

Unit.-The returns described in the foregoing table, with certain exceptions, are forwarded by the collectors to the Income Tax Unit at 

Washington.' 

As of June 30, 1940, substantially all the returns filed within the 

fiscal year by taxpayers had been transmitted to the Washington 

office of the Income Tax Unit and examination had been completed 

of all of these returns, with the exception of those not accepted as filed. 

The number of returns of individuals, taxable fiduciaries, and corporations which were not accepted as filed. was 747,198. The returns not 

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

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

load of the field offices for the fiscal year 1941. Prior to shipment 

of these returns to the field offices various information at the source 

forms and other documents bearing upon the audit of these returns 

are associated with them for use in the investigation work of these 

offices. The number of information at the source forms filed during 

the fiscal year showing income payments was approximately 

21,350,000. 

Investigations and adjustments of income tax returns by the field 

offices.-The number of income tax returns, including partnerships 

and fiduciaries, investigated during the fiscal year 1940 was 424,072, 

as compared with 490,673 for the previous fiscal year. These figures 

include all returns for which the examiner's report has been submitted, 

whether or not the case has been finally disposed of by the reviewing 

officers. Notwithstanding this decrease in number of investigations, 

the additional tax assessments (excluding jeopardy and duplicate 

items) increased, being $200,342,371 for 1940, as compared with 

$195,278,426 for the previous year. 

In relation to the total technical personnel assigned to the field 

offices, the average amount of additional tax assessed for each agent 

was higher for 1940 than for 1939, being $59,573 for the fiscal year 

1940 as against $58,695 for 1939. The actual number of individual, 

taxable fiduciary, and corporation income tax returns disposed of by 

the field offices during the fiscal year 1940, with and without investigation, was 858,321-consisting of 588,631 returns in which no 

change in tax liability was made, 211,629 returns in which additional 

tax was recommended, and 58,061 in which a reduction of tax was 

recommended. In addition, the field offices disposed of 550,842 

partnership and nontaxable fiduciary returns. There was a net 

improvement in the position of the field offices as indicated by the 

following inventory. 

Inventory of returns on hand in the field offices as of June 30, 1940.-

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

of June 30, 1940, was 406,616, as compared with 455,256 for June 30, 

1939. The net reduction as between the end of the two fiscal years 

was 48,640, or 10.7 percent. The net reduction in prior-year work 

was 10,264 in number of returns, or 15.6 percent. The percent of 

open prior-year work to open current-year work at the end of 1940 was 

15.8, as compared with 16.9 percent for 1939. 

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

chiefly from salaries, wages, dividends, interest, and annuities, and Form 1040-C, individual income tar 

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

Unit. Nontaxable fiduciary returns, Form 1041, and partnership returns, Form 1065, are retained in theoffices of the collectors for examination by representatives of the field offices of the Income Tax Unit. 
18 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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

process of settlement, by tax years, as of June 30, 1939 and 1940 

Number of income 

tax returns on 

hand as of June 

Number of income 

tax returns on 

hand as of June 

Tax years 30- Tax years 30- 

1939 1940 1939 1940 

1920 and prior 

il eu ct“'4=C4.91, e111 

239 1933 1, 435 1, 113 1921 63 1934 4,1185 2,885 1922 63 1935 12, 349 5,620 1923 76 1936 44, 532 18,041 1924 84 1937 100,144 26,432 1925 104 1938 289,151 110,789 1928 132 1939 268 240,010 1927 160 1940 388 1928 

1929 

225 

376 Totals 455, 256 408, 616 1930 503 

65, 693 55, 429 1931 572 Total prior year returns 

1932 741 Total current year returns.... 389, 563 351,187 

Unagreed adjustments pending.-The number of returns involving 

unassessed back taxes was materially reduced during the year. The 

number of examined income tax returns involving adjustments not 

agreed to by the taxpayers and pending action by the Bureau and its 

field offices on June 30, 1940, was 31,507. 1This compares with 

45,033 1adjusted returns pending without taxpayers' agreement on 

June 30, 1939, a decrease of 13,526. The number of returns for 1939 

shown as 45,033 is the revised figure. It was shown in the previous 

report as 43,984. 

Revenue results of audit and investigative efforts of the Income Tax 

Unit.-The total additional assessments made during the fiscal year 

1940 was $284,442,733. Excluding jeopardy and duplicate items, the 

amount was $242,856,510, which was the largest for any fiscal year 

since 1929. An analysis of the assessments for the fiscal year 1940 

as compared with the fiscal year 1939 fol ows: 

Additional income tax assessments made during he fiscal years 1940 and 1939, by 

nature of assessment 

Nature of assessment Number 

of returns 

Additional 

tax Interest Penalty Total 

• FISCAL YEAR 1940 

Regular 212, 797 $290, 342, 371 $39, 631, 242 $2, 882, 897 $292, 856, 510 

Jeopardy I I, 568 19,676, 342 9, 307, 076 4,800, 345 28, 783, 763 

Duplicate I 542 11,132, 999 1, 570,829 98,632 12, 802, 460 

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

FISCAL YEAR 1939 

Regular 240, 317 195, 278, 428 39, 102, 219 1, 883, 594 236,264,239 

Jeopardy I 1,904 20, 301. 346 5, 059, 731 3, 568, 826 28, 929, 903 

Duplicate I 854 2,377,633 1, 009, 318 191, 960 3, 578, 911 

Totals 293, 075 217, 957, 405 45,171, 268 5, 644, 380 268, 773,053 

I Duplicate assessments made under the jeopardy provisions are included with the jeopardy assessments. 

I Includes 5,273 income tax returns, on which statutory notices have not been issued, which were pending 

before the field offices of the Technical Staff as of June 30, 1940, and 4,950 such returns as of June 30, 1939. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 19 

For a distribution of the additional income tax assessments made 

during the fiscal year 1940 by tax years to which the assessments 

relate, see pages 103-107. 

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

made in effecting settlement of additional tax liabilities by agreement 

with the taxpayers prior to the issuance of the statutory notice required in those cases in which the taxpayers desire to exercise their 

right of appeal to the Board of Tax Appeals and the appellate courts. 

Of the total number of 213,339 returns on which regular additional 

assessments (including duplicate-regular) were made, 199,044, or 93.3 

percent, was by agreement with the taxpayers without the necessity of 

a statutory notice. Of the total regular additional tax assessed 

(including duplicate-regular), aggregating $211,475,370, the amount 

assessed by agreement was $165,810,823, or 78.4 percent. 

A comparison of the assessments by stages at which made as between 

the fiscal years 1939 and 1940 follows: 

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

Unit during the fiscal years 1940 and 1939 by stages at which assessment was made 

Stage at which additional assessmeet was made 

N1m 

bar of 

returns 

Percent 

of total 

Additional 

tax 

Percent 

of total Interest - Penalty Total 

FISCAL YEAR 1940 

On agreements executed prior to Dollars Dollars Dollars Dollare 

mailing of 90-day letter 199, 044 93.3 165, 810, 823 78.4 25, 386, 378 1, 250,158 192, 956.357 

Default or agreement after issuance of 90-day letter 10, 522 4. 9 12, 714, 788 6.0 2, 500, 731 821, 881 16, 037, 400 

In appealed cases after trial on 

the merits and decision by the 

Board of Tax Appeals, or upon 

stipulation before the Board of 

cases settled by Technical 

Staff and/or Chief Counsel.... 3, 773 1.8 32.949, 759 15.8 13, 314, 964 900, 490 47,185, 213 

Total ^13, 339 100.0 211, 475, 370 100.0 41, 202, 071 2, 981, 529 255, 658, 970 

Jeopardy provisions of the Code 1, 568 19, 676, 342 4, 307, 076 4, 800, 345 28, 783, 783 

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

FISCAL YEAR 1939 

On agreements executed prior to 

mailing of 90-day letter 226, 216 93. 8 144, 506, 648 73.1 20, 443, 922 843, 855 165, 594, 225 

Default or agreement after issuance of 90.day letter 10, 840 4.5 17, 767, 854 9. 0 3, 738, 315 1,063, 206 22, 569, 375 

In appealed cases after trial on 

the merits and decision by the 

Board of Tax Appeals, or upon 

stipulation before the Board of 

cases settled by Technical 

Staff and/or Chief Counsel._ 4,115 1. 7 35, 381, 557 17.9 15, 929, 300 388, 692 51, 879, 549 

Total 241, 171 100.0 197, 656, 059 100.0 40,1I1, 537 2, 075, 553 239, 843,149 

Jeopardy provisions of the Code.. 1,904 20,301,346 5, 059, 731 3, 568, 828 28, 929, 904 

Total 243,075 217, 957, 405 45,171, 268 5, 644, 379 268, 773,053 

For a distribution of the additional assessments made during the 

fiscal year 1940 by tax years for each stage at which assessment was 

made, see pages 103-107. 
20 REPORT OF COM1VITSSIONER OF INTERNAL REVENUE 

An historical comparison of the progress in settlement of additional tax liabilities by agreement with the taxpayers without the 

necessity of issuing a statutory notice follows: 

Percent of total additional tax, interest, and penalties assessed by agreement with 

taxpayers without the necessity of issuing a statutory notice to total regular additional tax, interest, and penalties assessed for the fiscal years 1931 through 1940 

Fiscal years: Percent Fiscal years: Percent 

1931 47. 2 1936 61. 4 

1932 50. 7 1937 73. 3 

1933 36. 3 1938 73. 2 

1934 31. 6 1939 69. 0 

1935 50. 9 1940 75. 3 

Petitions to the Board of Tax Appeals of income tax cases.-Income 

tax cases petitioned to the Board during the fiscal year 1940 involved 

5,386 returns and proposed tax deficiencies of $69,970,847. This 

compares with 6,197 returns and tax deficiencies of $84,191,420 for 

the fiscal year 1939. For a statement showing the number of returns, 

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

tax years, see pages 103-107. 

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

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

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

the fiscal year 1940 was 81,711, by comparison with 76,834 such cases 

closed during the fiscal year 1939, an increase of 4,877, or 6.3 percent. 

Of the total of 81,711 overassessments for 1940, 38,771 were made to 

taxpayers without the necessity for filing claims. This compares 

with 41,930 in the previous year. 

Of the overassessments settled by the Income Tax Unit in 1940, 

71,648 represented refunds or credits of tax or interest involving 

$55,810,102, by comparison with 58,422 involving $38,020,839 in 1939. 

The amount involved in overassessments of all types for 1940 represented by refunds, credits, interest, and abatements for income tax 

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

Unit was $185,936,641, as compared with $90,601,200 the previous 

year. 

There follows a table showing a comparison of claims and certificates of overassessments issued for the fiscal years 1939 and 1940 by 

the Income Tax Unit: 

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

fiscal years 1939 and 1940 

1939 1940 

Allowances: 

Certificates of overassessment issued when no claims had been filed 41, 930 38, 771 

Claim allowed in full or in part 34,904 42,940 

Total allowances 76,834 81, 711 

Status of claims: 

Pending at beginning of year 32,415 40,140 

Filed during year (new claims) 51,925 53,080 

Total to be disposed of 84,340 93,220 

Allowed in full or in part 34, 904 42, 940 

Rejected 9, 296 16, 775 

Total disposed of 44,200 59,715 

Pending at end of year 40, 140 33, 505 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 21 

There were also allowed 30,950 collectors' claims, of which 14,364 

recommended abatements or credits and 16,586 recommended refunds. These claims were largely multiple-item claims, or claims for 

refund to numbers of taxpayers, and involved 27,648 items for abatement or credit and 72,777 items for refund. 

There follows a table showing the amount involved in tax overassessments settled during the years 1939 and 1940 resulting from audit of 

income tax returns, including cases settled by the collectors' offices as 

well as the Income Tax Unit: 

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

tax cases closed during the fiscal years 1939 and 1940 

Fiscal year ending June 

30- 

1939 1940 

Overassessments settled byAbatement: 

Regular $33, 909, 690 $98, 764, 513 

Duplicate 16, 663, 843 29, 627, 955 

Credit 12, 347, 755 11, 711,124 

Refund 

Total 

22, 772, 014 36, 824, 426 

85, 693, 302 176 828, 018 

Interest 

Grand total 

4, 907, 898 9, 108, 623 

90, 601, 200 185, 936, 641 

NOTE.-The amount involved in claims filed during the year 1940 was $156,272,676, compared with $117,-

408,145 the preceding year. Of the claims disposed of during the year, the amount rejected totaled 

$143,847,884, compared with $85,236,575 the preceding year. 

Depreciation.-Depreciation deductions claimed by taxpayers on 

returns filed were disallowed in the aggregate amount of $103,132,078. 

Additional tax resulting from such disallowances was proposed in the 

amount of $14,661,992, of which $14,553,217 was agreed to by the 

taxpayers. 

MISCELLANEOUS TAX UNIT 

The Miscellaneous Tax Unit is concerned with the administration 

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

taxes, the taxes applicable to alcoholic beverages, and those relating 

to employment. Detailed statements concerning the particular taxes 

administered in each of the five divisions of the Miscellaneous Tax 

Unit are set forth in the pages that follow. 

Collections of miscellaneous taxes for the fiscal year 1940 amounted 

to $1,753,068,908, an increase of $84,837,826 as compared with collections for the preceding year. 

ESTATE TAX DIVISION.-The Estate Tax Division administers the 

laws applicable to the estate tax and the gift tax. 

Collections of estate tax for the year amounted to $330,886,049, a 

decrease of $1,393,564 as compared with collections for the preceding 

year. 

Collections of gift tax amounted to $29,185,118, representing an 

increase of $749,521 over the previous year. 

Assessment and collection of additional taxes amounting to $14,-

410,452 proposed in 321 estate tax and gift tax cases were deferred 

pending the adjudication of appeals filed with the United States 

Board of Tax Appeals. 
22 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Returns.—There were 18,908 estate tax returns and 14,435 gift tax 

returns filed during the year. 

The close of this fiscal year marked the end of the first full year in 

which the decentralization program was in effect throughout the entire 

field. In addition to the results obtained through the post-audit 

review of the cases closed in the field, appropriate steps were taken to 

furnish the field officers with information designed to secure greater 

uniformity of action and to explain or clarify the procedure and 

practice. Formulas and tables were furnished field officers to be used 

in the determination of the tax in the more complicated cases. 

As a result of Bureau and field investigations and audits, deficiencies 

in tax amounting to $47,874,115 were assessed in estate tax cases and 

$5,693,999 in gift tax cases. 

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

fiscal years 1939 and 1940 

Estate tax Gift tax 

1939 1940 1939 1940 

On hand at beginning of year 

Received 

12,878 

18, 265 

14,173 

18,908 

5,094 

13, 614 

9, 14 

14,

8

935 

Total to be disposed of 31, 143 33,081 18, 708 19, 249 

Disposed of 16, 970 20,174 13, 894 113,657 

On hand at end of year 14,173 12, 907 4, 814 5, 699 

This figure does not Include any cases in which field investigations were made. There were filed with 

the Bureau 801 reports reflecting the field settlement of gift tax cases; post-audit reviews were made in 804 

eases, and on June 30, 1940, there remained 26 cases on hand awaiting the Bureau post-audit review. 

Claims.—Claims for refund of estate tax and gift tax, with interest 

thereon, were allowed in the amount of $8,997,204 in 2,003 cases. 

The amount allowed included $3,612,654, the refund of which was 

authorized as a result of court decisions. 

Estate tax and gift tax claims received and disposed of during the fiscal year 1940 

Estate tax claims Gift tax claims 

Refund Abatement Refund Abatement 

Number Amount Num 

ber Amount Num 

ber Ainount Number Amount 

Claims filed: 

On hand July 1, 19W 

Received 

Reopened 

Total to be disposed of 

Allowed 

Rejected 

Total disposed of 

On hand June 30, 

1940 

No claims filed, ovenssessments allowed 

Interest allowed 

Total amount allowed, including 

interest 

435 

793 

49 

$6 718,066.46 

11

,

, 51E 535. 55 

1,064, 795. 12 

6 

320 

$2, 456.38 

4,018, 176.34 

177 

393 

34 

$13, 712,713.40 

3, 649,078.91 

190, 725.11 

68 $57, 521.55 

277 19,299, 397 13 326 , 020, 632. 72 604 17, 552, 517. 42 es 57, 521.56 

565 

275 

2, 597,930. 63 

4,632,853. 79 

294 

4 

976, 938.54 

1, 541. 47 

219 

208 

2, 698,000. 60 

11,010, 562. 41 

63 18, 622.49 

840 7,23%844. 42 298 , 978, 480.01 427 13, 708, 563.01 63 18. 622. 49 

437 

,017 

12,088, 552.71 

2,015, 380.08 

880, 308. 78 

28 

846 

42, 152. 71 

, 879, 125. 51 

177 

202 

3, 843, 964.41 

284,325. 96 

541, 207. 97 

5 

44 

38,891 06 

112, 783.16 

,582 5, 493, 669.49 640 , 856, 904. 05 421 3, 503, 534.53 107 131, 405. 65 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 23 

Court decisions.—On November 6, 1939, the Supreme Court of the 

United States handed down a decision in the case of Sanford's Estate 

v. Commissioner (308 U. S., 39), which involved the question of whether 

in the case of a transfer in trust the gift tax was applicable when the 

donor relinquished a power to revest title in himself although he retained the right to change the beneficiaries, or whether the gift was 

completed at a later date when he relinquished the right to change the 

beneficiaries. The Court held that the gift was completed and the 

tax attached at the later date. 

On January 29, 1940, the Supreme Court decided, in the case of 

Helvering v. Hallock (309 U. S., 106) and certain related cases, that 

an intervivos transfer of property in trust, with provision for return 

or reversion of the corpus to the donor upon a contingency terminable 

at his death, comes within section 302(c) of the Revenue Act of 1926, 

and that section as amended by section 803 of the Revenue Act of 

1932, relating to transfers intended to take effect in possession or 

enjoyment at or after death. 

TOBACCO DIVIBION.—The Tobacco Division is concerned with the 

administration of the laws and regulations relating to the taxes on 

tobacco, snuff, cigars, cigarettes, cigarette papers and tubes, the purchase and sale of leaf tobacco, and the removal of tobacco products 

without the payment of tax, for export, for use of the United States 

and as sea stores. 

The collections of tobacco taxes for the year amounted to 

$608,518,444, which amount represents an increase of $28,359,238, or 

approximately 5 percent over the collections for the preceding year. 

A comparison of the collections of tobacco taxes for the fiscal years 1939 and 1940 

Source 1939 1940 

Increase or decrease (—) 

Amount Percent 

Cigars (large): 

Class A 

Class B 

Class C 

Class El 

Class E 

Total 

Cigars (small) 

Cigarettes (large) 

Cigarettes (small) 

Tobacco, manufactured 

Snuff 

Total 

Leaf tobacco sold 

Cigarette papers 

Cigarette tubes 

Grand total 

$9, 748,072. 51 

139, 641.82 

2, 472, 023.36 

374,686. 98 

57,525.82 

$9, 894, 669.58 

127,370. 58 

2, 435,020. 80 

378,882. 52 

61,820.09 

$145, 997.07 

—12, 271. 24 

—37,002.56 

4, 195. 54 

4, 294. 27 

o6 to -an ca 

12, 792. 550. 49 12, 897, 763.57 105,213.08 .8 

120, 452.82 

19, 267. 94 

504,036, 932 48 

97,685. 79 

16, 854. 96 

533,042, 544.34 

—22, 757.03 

—2,412.98 

29.005, 811.86 

—14. 9 

—12.5 

5. & 

54, 757, 043.76 

6.932,019. 20 

54, 383,802 79 

6, 798, 556. 53 

—373, 240.97 

—133,46267 

61, 689,062. 96 61,182.359. 32 —506, 703.64 

7, 163. 25 

1,977, 931.76 

15,854.04 

I, 727.71 

1, 252, 252.40 

27, 255. 50 

—225,1179. 36 

11,401.46 

—15.3' 

71. 9 

680, 159, 205.79 608,518,443. 59 28, 359, 237.85 4.9 

The tax on small cigarettes amounted to $533,042,544, an increase 

of $29,005,612, or 5.8 percent over the previous fiscal year, representing 87.6 percent of the total tobacco taxes collected during the 

current year. 

The withdrawals of tobacco products tax-free for use of the United 

States amounted to 66,407,000 cigarettes and 313,460 pounds of 
Increase or 

decrease (—) Source 1939 1940 

Documentary stamps: Bonds of indebtedness, capital stock issues, etc_ _ 

Capital stock sales or transfers 

Sales of produce (future delivery) 

Playing cards 

Silver bullion, sales or transfer s 

Total 

$19, 366,429.92 

17,064,488.08 

1 248, 982. 30 

4,141,166. 60 

5261, 772. 52 

41,082,839. 42 38,681,345. 32 

15,527,050. 19 

$18, 145, 227.94 

193,736.79 

4, 814,430.40 

—$1,221,201.98 

—1, 536, 537.89 

—298,982.30 

673, 263. 80 

—68, 035.73 

—2,401,494.10 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 25 

24 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

manufactured tobacco. During the year 2,352 permits were issued 

for such withdrawals. 

Number of claims for the refund and abatement of tobacco taxes, for the redemption 

of tobacco stamps, and for drawback, received and disposed of during the fiscal 

year 1940 

Drawback 

Refund 

Amount Number 

3 

11 3, 303.80 

1 

.07 

1 In addition, interest in the amount of $14.68 was allowed. 

The sum of $1,832,670, representing claims allowed for there redemption of stamps, includes the following: Stamps which were ndered 

useless, $1,366,697; stamps for which the owner alleged he had no further use, $13,787; and the value of stamps affixed to packages of 

tobacco products withdrawn from the market by the manufacturer 

or importer, $452,186. Under the provisions of section 317 of the Tariff Act of 1930, manufacturers are authorized to withdraw from their factories tobacco 

products, without the payment of tax, for use as sea stores. These 

products are delivered directly to vessels or to bonded tobacco sea 

stores warehouses for subsequent delivery to vessels. There are 26 

such warehouses now in operation. 

Detailed statistics covering the manufacture and removal of manufactured tobacco, snuff, cigars, and cigarettes, the receipt and shipment 

of leaf tobacco, and the removal of cigarette papers and tubes will be 

found in the tables in the appendix. 

SALES TAX 

Driusiox.—The functions of the Sales Tax Division 

include the work relating to the manufacturers' excise taxes, he taxes 

applicable to the transportation of oil by pipe line, electrica tl energy, 

telegraph, telephone, cable and radio communications and facilities, 

safe deposit boxes, admissions and dues, pistols and revolvers, the 

processing of coconut and other vegetable oils, bituminous coal, silver, 

hydraulic mining, narcotics and marihuana, the documentary stamp 

taxes, special occupational taxes, and the enforcement of the National 

Firearms Act and the Federal Firearms Act. 

Collections during the fiscal years 1939 and 1940 

1 Repealed as of June 30, 1932 

4 1939 collections repotted In text under Bituminous Coal and Silver Tax Division. 

Collections during the fiscal years 1939 and 1940—Continued 

Source 1939 1940 Increase or 

decrease (—) 

Oleomargarine: 

Colored $38,657.40 $31,116. 52 —$7, 540.88 

Uncolored 822, 417.67 759, 463. 51 —62, 954.16 

Special taxes 1, 349,310. 98 1, 223, 020. 00 —126, 290.98 

Total 2, 210, 386.05 2,013, 600.03 —196, 786.02 

Adulterated butter 6, 661.06 13, 275. 31 6, 614.25 

Renovated butter 8, 488.86 7,002.89 —1,485.97 

Mixed flour 6, 214. 71 6, 241. 83 27.12 

Filled cheese 155. 24 155. 24 

Total 21,364.63 26, 675. 27 5,310.64 

Manufacturers' excise taxes (Title IV, Revenue Act 

of 1932, as amended, and Subtitle C, Chapter 29, 

Internal Revenue Code, as amended) 356,965, 318.61 404, 298, 499.35 47, 333,180. 74 

Transportation of oil by pipe line 10, 954, 732.60 11, 510, 646.54 555,913.94 

Electrical energy 39,859,173.55 92, 338, 501.94 2,479,328.39 

Telegraph, telephone, cable and radio messages, etc 22, 631, 282.09 25, 000,050. 81 2, 368, 768.72 

Leased wires, etc. (telegraph and telephone) 1,462,436. 76 I, 367, 894. 21 —94, 542. 55 

Safe deposit boxes 1, 980, 525.03 1,988,933.79 8, *B. 76 

Total 433,853,468. 64 486, 504, 526. 64 52, 651,058.00 

Admissions 19,470, 801. 85 21,887,916.00 2,417, 114.15 

Dues and initiation fees 6, 216,900. 39 6,334,908.82 118,008. 53 

Total 25, 687, 702. 14 28, 222,824. 82 2, 535,122.68 

Pistols and revolvers 66, 511.36 89, 508.54 22,997.18 

Narcotics 567, 550.40 605, 395.66 37,845.26 

Marihuana 4,537. 53 4,702.60 165.07 

Delinquent under repealed laws 5 96, 294.55 5502, 322.11 406,027.56 

Total 734, 893.84 1,201,928.91 467, 035.07 

Coconut oils, etc., processed 27, 664,929. 62 22, 794,354.47 —9,920, 575.15 

Crude petroleum processed, refined, etc 1106, 055.32 (4 ) —106,055. 32 

National Firearms Act__ 9,079.08 12, 388. 68 3, 309. 60 

Total 27, 780, 064.02 22, 756, 743.15 —5,023,327.87 

Hydraulic mining 2, 326.14 2,326. 14 

Bituminous coal 53, 317, 259.01 4, 161,663. 02 844,404.91 

Other miscellaneous receipts 51, 621. 37 23,768. 63 —27,852. 74 

Grand total 534, 739, 599.12 583, 595, 402. 83 48, 855, 803.71 

Repealed as of June 30, 1938. 

2 Includes taxes of $83,898.18 on jewelry, $5,361.79 on soft drinks, $4,288.24 on checks, $1,500.65 on candy, 

$1,294.64 on dividends, and $1.05 on grape concentrate. Does not include taxes on sales of produce (future 

delivery), brewer's wort and malt, toothpastes and toilet soaps, etc., articles made of fur, sporting goods, 

cameras, chewing gum, and crude petroleum processed, refined, etc., which were repealed as of June 30, 

1938. 

3 Includes taxes of $159,810.57 on fur, $193,095.47 on sporting goods, $7 1 ,655. 79on candy, $64,332.64 on 

Jewelry, $45,242.33 on toothpastes and toilet soaps, etc., $6,822.13 on cameras and lenses, $2,488.17 on malt, 

$2,363.58 on Checks, $2,075.86 on chewing gum, $2,061.60 on soft drinks, $1,588.13 on brewer's wort, $555.39 

on crude petroleum processed, refined, etc., $270.09 on grape concentrate, and $20.36 on dividends. 

4 Collections for fiscal year 1990 included in "Delinquent under repealed laws." 

1939 collections reported in text under Bituminous Coal and silver Tax Divisions. 

Admission taxes.—Considerable attention has been paid to cases 

where attempts have been made to avoid payment of the proper taxes 

on tickets or cards of admission to theaters, operas, and other places 

of amusement, sold at prices in excess of the established price thereof. 

Investigations were likewise conducted with respect to the delinquent 

taxes on admissions to cabarets. Collections of delinquent taxes from 

these sources were materially increased and a number of theater ticket 

brokers and proprietors of places of amusement and cabarets were 

prosecuted for evading payment of appropriate taxes and for failure 

properly to stamp tickets. Convictions were obtained and fines and 

terms of imprisonment were imposed in a number of cases. 

269679-40-3 

On hand July 1, 1939. 

Received 

Reopened 

Allowed 

Rejected 

On hand June 30, 1040 

Number 

6 

4 

Amount 

1364.40 

559.59 

2, 692.54 

$312. 73 

Number 

274 $170, 457. 37 18 53, 420.86 

1,964 1, 842, 806.77 73 11,530.28 

12 1,694.75 1 69.86 

I, 985 1, 832, 670.38 68 7, 536.00 

27 3, 776. 06 19 6,658. 61 

238 178, 512. 45 7 826. 39

1 

Redemption 

Amount Number 

Abatement Uneollectible 

9 

Amount 

$726.26 

651.8' 

74. 37 

Number 

1 

16 

Amount 

3,804.21 

3,823.77 

919.63 
26 REPOR'' OF COMMISSIOINER OF INTERNAL REVENUE 

Documentary stamp taxes.—The collections of documentary stamp 

taxes applicable to the issue and transfer of corporate bonds, the issue 

and transfer of shares of stock, deeds of conveyance, passage tickets, 

and foreign insurance policies amounted to $33,673,178, as compared 

with $36,679,900 for the preceding year. 

Playing cards.—There were 67 manufacturers, repackers, or importers of playing cards registered during the year. There were 

manufactured, repacked, or imported a total of 51,667,930 packs of 

playing cards, as compared with 45,143,829 packs manufactured, 

repacked, or imported during the preceding year. 

Oleomargarine; adulterated, process, or renovated butter.—At the 

beginning of the year there were 40 manufacturers of uncolored oleomargarine engaged in the business, and at the end of the year there 

were 41 such manufacturers. The number of manufacturers of colored 

oleomargarine was 24 at the beginning of the year and 24 at the close 

of the year. The production of colored oleomargarine amounted to 

1,859,931 pounds and the production of uncolored oleomargarine 

amounted to 301,857,570 pounds, as compared with 1,380,891 pounds 

of colored and 331,591,928 pounds of uncolored oleomargarine produced during the previous fiscal year. During the year 17,378 returns 

were filed by manufacturers and wholesale dealers in oleomargarine. 

The withdrawals, tax free, for export of colored oleomargarine 

amounted to 649,489 pounds, as compared with 155,748 pounds of 

colored oleomargarine withdrawn for export during the preceding 

year, and the tax-free withdrawals of colored oleomargarine for use 

of the United States amounted to 896,387 pounds, as compared with 

867,925 pounds so withdrawn during the previous year. 

There were no registered manufacturers of adulterated butter engaged in business during the year. Four manufacturers of process or 

renovated butter were in business, producing 2,706,852 pounds of 

process or renovated butter, as compared with a production of 

2,906,117 pounds in the previous year. 

Mixed flour.—There were 21 makers, packers, or repackers of mixed 

flour engaged in business during the year, who made, packed, or 

repacked a total of 25,468,470 pounds of mixed flour, as compared 

with 23,767,230 pounds for the fiscal year 1939. 

Firearms, under the National Firearms Act and the Federal Firearms 

Act.—There were registered with the Bureau during the year, in 

accordance with the requirements of the National Firearms Act, 

11,223 machine guns and other firearms subject to the provisions of ithat 

Act, and 141,768 transfers of firearms were made under applications 

for such transfers. The total number of firearms registered in 

accordance with the provisions of the Act from July 26, 1934, the 

effective date of the Act, to June 30, 1940, is 59,399. The collections 

of taxes under the National Firearms Act, including .special taxes, 

amounted to $12,389. 

The total number of licenses issued during the current year to 

manufacturers and dealers in firearms, in accordance with the provisions of the Federal Firearms Act, was 27,352. 

Narcotics and marihuana.—The collections of taxes on narcotics, 

including special taxes, amounted to $605,396, as compared with 

$567,550 collected during the preceding year. Collections of taxes 

on marihuana, including special taxes, amounted to $4,703, as compared with $4,538 for the preceding year. 

REPORT OF COMMISSIONER. OF INTERNAL REVENUE 27 

Bituminous coal.—Under the provisions of the Bituminous Coal. 

Act of 1937, now Chapter 33 of the Internal Revenue Code, two 

taxes are imposed with respect to the sale or other disposal of bituminous coal by the producer—a tax of 1 cent per ton on all sales or 

other disposals and a tax in an amount equal to 19% percent of the 

selling price or fair market value of the coal while the producer is not a 

member of the Bituminous Coal Code if the transaction is subject to 

the provisions and conditions of the code. 

During the current year, 63,624 returns of tax were filed by producers and the collections of bituminous coal taxes amounted to 

$4,161,664, as compared with 69,243 returns and $3,317,259 in collections for the preceding year. 

Silver tax.—Section 8 of the Silver Purchase Act of 1934, now 

section 1805 of the Internal Revenue Code, imposes a tax equal to 50 

percent of the net profit realized on the transfer of an interest in 

silver bullion, with certain exemptions and rights of abatement available to registered dealers and producers. The collections of silver tax 

amounted to $193,737 during the year, as -compared with $261,773 

for the preceding year. 

Hydraulic mining.—The Act of March 1, 1893 (as amended by an 

Act of June 19, 1934), known as the California Debris Control Act, 

imposes a tax with respect to certain hydraulic mining, the debris 

from which flows into or is in whole or in part restrained by dams or 

other works erected for the detention of debris by the California 

Debris Commission. The first of four dams to be erected has been 

completed and one mining operation performed. The tax is paid 

annually and the rate of tax for the completed darn has been determined 

by the California Debris Commission to be 2.6 cents per cubic yard 

mined. The collections of taxes for the year amounted to $2,326. 

Assessments.—A total of $1,109,316,701, representing 990,074 

items, was assessed on 2,503 miscellaneous tax assessment lists, which 

included original and additional assessments of all miscellaneous 

internal revenue taxes. Included in the lists were 42,015 additional 

assessments resulting from office audits and field investigations, 

representing taxes of $66,692,980, and the interest assessed and paid 

amounted to $7,650,060.' 

Field reports and returns.—At the beginning of the year there 

were on hand 266 field reports, representing additional taxes in the 

amount of $7,479,833. During the year, 8,496 field reports were 

received, representing $8,408,339 in additional taxes. At the close 

of the year there were on hand 119 reports which were awaiting 

additional data or which had not yet been reached for consideration. 

In addition to the foregoing, 439,292 sales tax returns, representing 

$524,353,288, were received and examined during the year. 

As a matter of administrative convenience, the Sales Tax Division completes assessments, schedules 

claims and certificates of overassessment, and passes on offers in compromise for the Estate Tax Division, 

the Tobacco Division, the Capital Stock Tax Division, and the Processing Tax Division with respect to 

sugar-tax claims. 
Refund Abatement Redemption 1Incollectible 

Claims 

Num- Num Num- Num- ber Amount ber Amount ber Amount ber Amount 

Sales taxes: 

Miscellaneous stamps: 

-Narcotics: 

Reopened 

Marihuana: On hand July 1, 1939 

Silver: On hand July 1, 1939 

Reopened 

Coal: 

Total claims: 

On hand July 1, 1939.-_ 29 59.50 

On hand July 1, 1939 . _ __ 1, 342 $10, 355, 146.40 477 $5, 733, 099.55 

Reopened 100 763, 333. 57 42 259, 266.47 

Allowed 1, 505 2, 338, 369. 43 795 3, 545, 316.86 

Rejected 1, 020 8, 260, 998. 83 197 2, 033, 037. 07 

Reopened 14 54, 396. 79 10 42, 453.97 16 28, 605. 43 

On hand June 30, 1940... 81 144, 950.8 52 186, 225. 16 516 193,499.96 

Rejected 1 5.44 4.00 1 14.00 

On hand June 30, 1940... 9 13.25 1 202.50 3 151. 28 

Reopened 1 1,577.30 

Rejected 250.00 5 1,913.51 

On hand June 30, 1940... 1 109.78 1 100.00 1 4.00 

Rejected 3 130, 581. 57 1 50.00 

On hand June 30, 1940 1 190. 95 

Reopened 1 452. 55 2 4.53 

Reopened 115 818, 182. 91 55 303,302. 27 16 28, 605.43 

Received 1,989 7, 526, 391. 55 831 2, 960, 108. 21 1,457 659, 513 90 

On hand June 30, 1940.. 906 8, 044 503.26 358 3, 374,120. 30 1 5.00 

On hand July 1, 1939.... 206 513, 052. 73 92 299, 399. 08 379 $78, 749. 55 1 945.50 

Received 281 317, 338.72 220 344, 953.88 2, 557 376, 630.86 225 83, 792.81 

Allowed 356 450, 084. 23 194 288,904. 63 1, 941 197, 222. 16 225 73, 938.31 

Rejected 84 289, 753. 73 76 211, 677. 14 495 93, 263.72 1 10, 800.00 

Received 116 180.75 8 223.25 48 370.96 26 19, 558. 26 

Allowed 135 221. 56 7 16. 75 46 218. 68 26 19, 558. 26 

Received 3 609.78 8 28, 990.96 7 16.00 37 195, 955. 26 

Allowed 1 250. 00 3 28, 554. 75 6 12.00 38 174, 755. 26 

Received 3 130, 581. 57 78 18, 213. 89 3 105. 00 1 203.37 

Allowed 77 18, 022.94 2 55.00 1 203. 37 

On hand July 1, 1939 . . _ . 001 °93 2 98 2 24 697.66 2 11 2 1, 330. 37 

Received 101 12, 931. 76 901 332, 278. 55 735 57, 446. 61 

Allowed 106 6, 390.84 834 302, 044.04 710 51, 398.95 

Rejected 12 6, 987. 43 67 21, 240. 70 32 6, 809. 25 

On hand June 30, 1840... 8 309.69 100 31, 696.00 4 568.78 

On hand July 1, 1939.... 21, 601 10, 868, 562. 28 3 667 36 196. 29 a 381 278, 762. 55 3 15 3 40, 616. 51 

Received 2, 493 7, 988, 034.13 2, 046 3, 684, 768.74 2, 615 377, 122. 82 2, 481 966,470. 21 

Allowed 2,103 2, 795, 316.06 1,910 4, 182, 859. 97 1,995 197, 507.84 2, 458 988, 903. 69 

Rejected 1,121 8, 688, 577. 00 345 2.267,872.42 497, 93, 327.n 33 17, 609. a 

On hand June 30, 1940... 985 8,190, 888.8 513 3, 592, 534.91 520,I193, 655. 24 5 573.7E 

, 055, 

2 13. 00 (2) (2) 

2 $9, 590. 64 

1,458 609,049. 54 

I 1 1 28, 800.00 

One claim for $28,800 transferred from narcotics uncollectibles on hand to marihuana uncollectibles on 

band. Transferred from Bituminous Coal and Silver Tax Division to Sales Tax Division on July, 1939. 

Includes 133 claims involving $24,331.68 transferred from Bituminous Coal and Silver Tax Division to 

Sales Tax Division on July 1, 1939. 

Interest was allowed in connection with the claims shown in the 

foregoing table in the amount of $286,801. 

Credit cases.—At the beginning 'of the fiscal year there were on 

hand 1,172 sales tax credit cases involving $1,001,077. During the 

year 8,546 cases involving were received and 8,741 

cases involving $11,743,173 were disposed of by allowances totaling 

$11,708,569 and rejections in the amount of $34,604. At the close 

of the year there were on hand 977 sales tax credit cases involving 

$1,215,428. In addition, 2,673 bituminous coal tax credit cases were 

disposed of during the year. 

28 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Claims.—The number of claims received and disposed of by the 

Sales Tax Division during the fiscal year ended June 30, 1940, is 

shown in the following table: 

Number of claims ,received and disposed of by the Sales Tax Division during the fiscal 

year 1940 

REPORT OF C'OMMISSIO'NER OF INTERNAL REVENUE 29 

Offers in compromise.—On July 1, 1939, there were on hand 553 

offers in compromise, aggregating $463,036, which had been submitted 

in settlement of civil and criminal liabilities incurred in connection 

with the various miscellaneous taxes. There were received 6,206 

offers, aggregating $994,287; 5,971 offers, aggregating $744,905, were 

accepted; 234 offers in the amount of $89,397 were rejected, and 36 

offers totaling $12,158 were withdrawn during the year. At the close 

of the year there were on hand 518 offers aggregating $610,863 

awaiting additional evidence or under consideration. 

Miscellaneous tax special squads.—The group of internal revenue 

agents and general deputy collectors assigned to duty under the 

direction of the Miscellaneous Tax Unit and operating as a mobile 

force investigating delinquent taxes on gasoline, lubricating oil, admissions, documentary stamps, oleomargarine, tobacco, and various 

other miscellaneous and manufacturers' excise taxes, continued to 

obtain excellent results in connection with these activities. During the 

year field officers reported a total of 2,640 cases involving $4,855,673 

in additional taxes, penalties, and interest. 

CAPITAL STOCK TAX PlIvistex.—The capital stock tax is imposed 

upon corporations carrying on or doing business during any part of 

the taxable year and is measured by the adjusted declared value of 

the capital stock of domestic corporations or by the adjusted declared 

value of the capital employed in the United States in the case of foreign 

corporations. 

The collections of capital stock tax during the year amounted to 

$132,738,537, an increase of $5,535,528 as compared with collections 

for the preceding year. 

During the year domestic and foreign corporations filed a total of 

530,584 returns. Of the total number of returns received during the 

year, 30,609 were filed by corporations organized subsequent to June 

30, 1938, and 31,573 were delinquent returns covering the years 1933 

to 1938, inclusive. 

As a result of the review and audit of returns during the year, 

16,457 assessments were made, involving tax in the amount of 

$1,732,327, as compared with 15,772 assessments totaling $1,302,785 

made during the previous fiscal year. 

Number of capital stock tax claims received and disposed of during the fiscal year 1940 

Refund Abatement Uncollectible Total 

Num- ber Amount Num- Amount Num-Amount Ni- u Amount ber ber ber 

On hand July 1, 1939 497 $635, 966.42 108 $41, 622.97 99 $11, 297. 20 704 $688, 886.59 

Received 19, 750 45, 433, 665. 46 876 337, 171. 36 1, 525 105, 749. 22 22, 151 95, 876, 586. 04 

Reopened 77 58, 986. 28 11 1, 339. 17 88 60, 325.45 

Allowed 2,195 351, 782.65 617 152, 555. 10 1, 317 100, 400. 18 4, 129 604, 737.93 

Rejected 17, 407 44, 448, 488.78 162 77, 502.52 4 1, 918. 03 17, 573 44, 527, 909. 33 

On hand June 30, 1940 722 1, 328, 346.73 216 150, 075.88 303 14, 728. 21 1, 241 1, 493, 150. 82 

Of the 19,750 claims for refund filed during the year 16,407 were 

based on the contention that the capital stock tax statute is unconstitutional. 

PROCESSING TAX DIVISION.—The Processing Tax Division is concerned with the administration of the tax imposed on the manufacture 

of manufactured sugar under Chapter 32 of the Internal Revenue 
30 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Code, and the adjustment of several types of claims arising as a result 

of the invalidation of the taxing provisions of the Agricultural Adjustment Act and the repeal of related legislation. 

Sugar Tax.-During the fiscal year 1940 monthly returns numbering 

1,927 were filed by manufacturers and tax was collected in the amount 

of $68,145,358, as compared with 1,950 monthly returns and collections of $65,414,058 for the fiscal year 1939, a gam in collections of 

$2,731,300. There were 1,614 claims in the total amount of $2,048,263 

filed for refund of tax applicable to sugar exported, as compared with 

1,151 claims filed, in the total amount of $842,541, during the preceding fiscal year. 

Claims.-The following types of claims are handled by the Processing Tax Division: 

(a) Claims under section 601 of the Revenue Act of 1936 with 

respect to certain articles exported or delivered for charitable distribution or use. 

(b) Claims under section 602 of the Revenue Act of 1936 for payment with respect to floor stocks held on January 6, 1936, of certain 

articles made from commodities subject to processing tax under the 

Agricultural Adjustment Act. The period of limitations for filing 

these claims, which originally expired on December 31, 1936, was 

extended by section 911 of the Social Security Act Amendments of 

1939 to December 31, 1939. This extension resulted in the reopening 

of 1,000 claims and the filing of 1,022 claims during the year. 

(c) Claims under Title VII of the Revenue Act of 1936 for refund 

of processing tax, floor stocks tax, and compensating tax paid under 

the Agricultural Adjustment Act. There were reopened 1,467 of these 

claims and 10,678 were filed during the fiscal year in pursuance of the 

provisions of section 405 of the Revenue Act of 1939, which extended 

the filing date to December 31, 1939. During the same period 723 

claims filed by persons who were also liable for the unjust enrichment 

tax imposed by Title III of the Revenue Act of 1936 were transferred 

to the Unjust Enrichment Division of the Income Tax Unit. 

(d) Claims for refund of taxes paid under the Bankhead Cotton 

Act, the Kerr Tobacco Act, and the Potato Act of 1935. The period 

of limitations for filing these claims, which originally expired on June 

30, 1939, was extended by the Third Deficiency Appropriation Act, 

fiscal year 1939, to June 30, 1940. 

Claims for refund or payment received and disposed of during the fiscal year 1940 

Revenue Act of 1936 

Section 601 Section 1302 Title vII 

Number Amount Number Amount Number Amount 

On hand July 1, 1939 

Received 

Reopened 

Total 

Allowed 

Rejected 

Transferred to Income Tax Unit. 

On hand July 1, 1940 

Total 

2 

7 

13 

$15,494. 33 

2,958.33 

5,827. 20 

102 

1, 022 

1,406 

$2,912, 967. 13 

2,213,804. 80 

1,667,961.52 

2, 708 

10,678 

1,856 

$14,924, 283. 73 

185,383,354.87 

3,067,586. 24 

22 29, 279. 86 2,530 6,694, 233.45 15,242 203,378 224.84 

16 

6 

14,852.62 

9, 427.24 

1,251 

937 

342 

2, 249, 794. 58 

2,841, 155.63 

1, 603, 283.24 

9,035 

3,165 

723 

2, 319 

2,838, 521 94 

19,540,792. 18 

171, 479,840. 89 

9,616,111.83 

22 24, 279.86 2, 530 6,694, 233.45 15,242 203, 375, 224. 84 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 31 

Claims for refund or payment received and disposed of during the fiscal year 1940- Continued 

Cotton Ginning Act Tobacco Act Potato Act 

Number Amount Number Amount Number Amount 

On hand July 1, 1939 

Received 

Total 

Allowed 

Rejected 

Transferred to Income Tax Unit 

On hand July 1, 1940 

Total 

2,481 

19,933 Re158 opened 

$51, 174. 09 

942,066. 29 

2,486.67 

5,542 

14,352 

501 

$271, 850.20 

484,586.02 

21,192.13 

2 

1 $N11.i Ii ; 

22,572 996,327.00 20,395 777,2835 3 681.10 §i. 

330,817.61 

666,788. 28 

8, 721. 11 

gi 1 

539,421.89 

229,950. 55 

18, 766.91 

eq . 

931.11 

249.99 

22, 572 996,327. 00 20,895 777,628.35 3 681.10 

Grand total 

Number Amount 

On hand July 1, 1939 

Received 

Reopened 

Total 

Allowed 

Rejected 

Transferred to Income come Tar Unit 

Dn hand July 1, 1940 

Total 

10,835 

45,994 

3,935 

$18,175, 269. 43 

189,027,801.42 

4,665,303. 75 

60,764 211,888,374. 60 

44,959 

11, 415 

72 

3,672 

5, 088,847.75 

23,272,813.87 

171,979,840.89 

11,146,872.09 

60,764 211,868,374.60 

Sugar tax claims received and disposed of during the fiscal year 1940 

Export Ove payment Livestock 

Number Amount Number Amount Number Amount 

On hand July 1, 1989 

Received 

Reopened 

Total 

Allowed 

Rejected 

Vn hand July 1, 1940 

Total 

98 

1, 614 

7 

$67,773. 40 

2, 048, 22.77 

249.43 

3 

34 148,977. 79 $1,290.80 

$37.48 

4 

1, 717 2, 116, 285.60 37 199, 015.27 4 1, 290.80 

1,621 

54 

42 

2, 080,087. 79 

26,531. 17 

10,666.64 

20 

12 

5 

13,398.84 

129, 134. 52 

6,481.91 

2 

2 

903.73 

297.07 

1,717 2,116, 283.60 37 149,015. 27 4 1, 290. 80 

Abatement Grand total 

Number Amount Number Amount 

On hand July 1, 1939 

Received 

Reopened 

Total 

Allowed 

Rejected 

DTI hand July 1, 1990 

Total 

1 

22 

9 

$280.07 

83,367.71 

31, 413.55 

100 

1,674 

11 

$68, 090. 95 

2,281,899.07 

31,662.98 

27 115, 051.33 1,785 2,381,663.00 

22 

5 

112,892.29 

2,869.04 

1,665 

73 

47 

2, 237, 172.65 

157,331.80 

17,148. 55 

27 115,061.88 1,785 2,381,6$8.00 
32 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

ALCOHOL TAX UNIT 

Collections of the liquor taxes amounted to $624,253,156 in the 

fiscal year 1940, as compared with $587,799,701 in 1939, an increase 

of $36,453,455, or 6.2 percent. In comparing the yield from the excise 

taxes on liquors (see table 1, pp. 54 to 61 for taxes grouped under 

this heading), it is found that the largest increase was in distilled 

spirits, for which collections increased 12 percent over the previous 

year. The collections from the excise tax on wines increased 26 percent, while the collections from the excise tax on fermented malt 

liquors increased 1.9 percent. 

Of the total liquor taxes collected, $346,833,775 came from distilled 

spirits, $9,643,194 came from wines, and $267,776,187 came from fermented malt liquors. Taxes collected from distilled spirits constituted 55.6 percent of the total in 1940, compared with 53.8 percent 

in the previous year. 

On June 30, 1940, the following producers and distributors of alcohol 

and alcoholic beverages, and users of tax-free alcohol, were under the 

supervision of the Alcohol Tax Unit: 

Distilleries: 

Number 

Alcohol 38 

Brandy 127 

All other 124 

Bonded warehouses: 

Alcohol 61 

283 Internal-revenue 1, , 036 

Bonded wine storerooms 98 

580 Breweries 

Rectifying plants 250 

Wholesale liquor dealers 

5, 531 

Wholesale malt liquor dealers 0, 597 1 

Denaturing plants 37 

Bonded dealers in specially denatured alcohol 52 

Bonded manufacturers using specially denatured alcohol 4, 193 

Hospitals, laboratories, and educational institutions using tax-free alcohol_ 6, 482 

During the year a number of regulations were revised and several 

new regulations issued. A general revision of regulations of this Unit 

had not previously been accomplished since the repeal of the eighteenth 

amendment. 

PROCEDURE Dins's:mi.—This division is reponsible for planning 

and developing procedure for the headquarters and field offices of the 

Alcohol Tax Unit; assists in drafting regulations, Treasury decisions, 

mimeographs, and circulars; reviews for revision all forms prescribed 

by the Alcohol Tax Unit; and is charged with the administration of 

regulations relating to traffic in containers of distilled spirits and the 

supervision of the Statistical Section. 

Regular monthly and annual statistical reports and releases concerning the activities of the Alcohol Tax Unit were prepared. Special 

statistical research work was performed relating to proposed legislation and inquiries from officials and the public. Statistical tables 

covering the operations relating to distilled spirits, fermented malt 

liquors and wines, and enforcement activities are contained in the 

Appendix. 

Statistics.—The following data summarize operations of the legitimate liquor industry under the supervision of the Alcohol Tax Unit: 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 33 

Ethyl and denatured alcohol.—More ethyl alcohol was produced 

during the fiscal year 1940 than in any prior year. Production 

amounted to 243,727;756 proof gallons, which is 44,710,210 proof 

gallons more than the previous year's figure. Tax-paid withdrawals 

increased from 22,150,969 proof gallons in 1939 to 24,344,306 proof 

gallons in 1940: Of the denatured alcohol produced, 15,352,033 wine 

gallons were completely denatured and 111,409,797 wine gallons were 

specially denatured. This compares with 17,179,433 wine gallons of 

completely denatured and 83,561,077 wine gallons of specially denatured alcohol produced during the fiscal year 1939. 

Distilled spirits.—The total production of whisky, rum, gin, brandy, 

and other distilled spirits in 1940 was 143,455,192 tax gallons, a 

decrease of 1,870,984 tax gallons, or 1.3 percent, from the production 

in 1939. Compared with the previous year, whisky production increased by 5,989,386 tax gallons, or 6.4 percent, while brandy production decreased by 9,019,471 tax gallons, or 32.9 percent. 

Tax-paid withdrawals of domestic distilled spirits, other than 

alcohol, increased from a total of 92,427,100 tax gallons in 1939 to 

103,981,635 tax gallons in 1940, or 12.5 percent. Each kind of spirits 

except brandy shared in this increase. Tax-paid withdrawals of 

whisky increased 12.8 percent, and withdrawals of high-proof spirits 

used in rectification increased over 19 percent. The trend toward the 

consumption of more mature whiskies continued, the withdrawals of 

bottled-in-bond whisky, for example, being increased from 6,316,668 

tax gallons to 13,569,728 tax gallons, or by approximately 115 percent. 

Withdrawals of distilled spirits for tax payment are permitted in 

packages and tank cars direct from distillery cistern rooms. During 

the fiscal year, tax-paid withdrawals direct from distilleries were as 

follows: In packages, 438,521 tax gallons;•in tank cars, 10,069,763 tail 

gallons. A total of 103,981,635 tax gallons were withdrawn on pay 

ment of tax during the fiscal year (see table 58), of which 93,472,592 

tax gallons were withdrawn from internal-revenue bonded warehouses 

and 759 tax gallons from export storage warehouses. Withdrawals 

from internal-revenue bonded warehouses consisted of 821,599 tax 

gallons from tanks, 11,981,487 tax gallons in cases, and 80,669,52( 

tax gallons (including 1,717,695 tax gallons for bottling in bond 

after tax payment) in packages. 

Total stocks of spirits in internal-revenue bonded warehouses at the 

close of the fiscal year aggregated 525,394,924 tax gallons, of whict 

480,937,609 tax gallons were whisky. 

Rectified spirits.—The production of rectified spirits increased front 

43,401,295 proof gallons to 47,656,570 proof gallons, or an increase of 

9.8 percent. The quantity of rectified whisky produced increased 

from 33,593,409 proof gallons to 37,977,224 proof gallons, or an in 

crease of 13 percent. The production of cordials and liqueurs in 

creased 11.2 percent, while the production of rectified gin decreases 

5.1 percent. 

Fermented malt liquors.—Tax-paid withdrawals of fermented mal 

liquors increased from 51,816,874 barrels to 53,014,230 barrels in the 

fiscal -year 1940, or an increase of 2.3 percent. The percentage o 

beer withdrawn by pipe line for bottling increased from 47.7 percen 

of the total in 1939 to 50.9 percent during the current fiscal year. 

Wines.—Production of still wine decreased from 231,959,287 gal 

Ions to 212,367,737 gallons. Tax-paid withdrawals of still win 
34 REPQRT OF COMMISSIONER OF INTERNAL REVENUE 

aggregated 82,176,586 gallons, or an increase of 22 percent over the 

previous fiscal year. The withdrawals of domestic sparkling wines 

increased by 32 percent, and tax-paid withdrawals of domestic vermouth produced at wineries increased from 187,288 gallons to 394,245 

gallons, or by 110 percent. 

ENFORCEMENT DIVISION.—The activities of the Enforcement Division include the investigation, detection, and prevention of willful and 

fraudulent violations of the internal revenue laws relating to distilled 

spirits, wines, and fermented malt liquors. 

During the fiscal year, 10,663 stills were seized, having an aggregate mash capacity of 1,653,775 gallons,' and in connection therewith 

6,480,240 gallons of mash were seized and destroyed. Investigators 

also seized 264,594 gallons of spirits and 4,523 automobiles and trucks. 

The total appraised value of the property seized amounted to $2,042,-

851. A total of 25,638 persons was arrested for Federal liquor law 

violations. Compared with the previous fiscal year, still seizures decreased 11.6 percent, mash seizures decreased 19.8 percent, and arrests 

decreased 11.1 percent. These decreases applied generally throughout 

the country and are in contrast to the increases reported in the previous year. Enforcement progress during the past five years may 

be measured by mash seizures, which declined from 21,373,107 gallons 

in 1935 to 6,480,240 gallons in 1940, a reduction of 67 percent. 

The control of raw materials through enforcement of Regulations 

No. 17 and Regulations No. 92 has continued to be effective as a preventive measure. Reports from distributors of raw materials have 

supplied data leading to the apprehension and conviction of illicit 

distillers who are being forced to secure materials in small quantities 

at scattered points which require transportation over considerable 

distances. This has been an important factor in reducing the number 

and size of illicit distilleries. Information furnished by dealers under 

Regulations No. 17 has led to the seizure, during the year, of more 

than 500 illicit distilleries and 150 vehicles, and to more than 700 

arrests. 

During the fiscal year, 193 automobiles were seized and 276 persons convicted for violations of the Liquor Enforcement Act of 1936. 

in connection with the importation of tax-paid liquors into the dry 

States of Kansas and Oklahoma. These seizures and convictions 

followed the passage by these States of enabling legislation as provided in the Act. Two major conspiracy cases under this Act were 

perfected, involving 140 and 169 defendants, respectively. 

During the past year 288 applications for pardon and 3,845 applications for parole were examined and reports submitted. A total of 

288 applications for pardon and 3,804 applications for parole were 

received. 

FIELD INSPECTION DIVISION.—This division plans, coordinates, and 

supervises the permissive functions in the field offices of the 15 field 

districts. A group of technically trained field inspectors, who serve 

as representatives of the Alcohol Tax Unit in maintaining an efficient 

permissive organization in the field offices, are assigned and directed 

by this division. They make frequent examinations by actual inI Represents the cubic capacity of still pots and cookers. Column stills which operate without a still 

pot or cooker are not reflected in this total. The size of illicit stills is reflected more properly by the mash 

facilities. The cubic measurement of the mash fermenters o fall the illicit stills seized during the fiscal year was 9,252,833 gallons. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 35 

spection of records, documents, etc., to determine whether law, 

regulations, established policy and procedure are being followed; 

devise and recommend plans and methods for greater efficiency and 

economy in the conduct of the work; supervise the installation of 

new procedures which have been approved by the headquarters 

office; coordinate and standardize the functions and work in the 

various units of the permissive divisions; determine the adequacy 

and efficiency of the personnel and suitability of space and equipment and the practicability of its reallocation for the proper handling 

of the work; make recommendations relative to the judicious expenditure of public funds; and confer with district supervisors on problems 

of organization, management, and service. 

The division maintains general supervision over the activities of 

inspectors and storekeeper-gaugers in the field districts and provides 

for the general instruction of these groups. A total of 64,197 inspections of plants and permittees was made during this period by general 

inspectors in the supervisory districts. All inspections of retail 

dealers during the fiscal year 1940 were conducted by junior inspectors, 

due to the fact that the W. P. A. inspection projects were discontinued 

prior to the beginning of the fiscal year. The following comparative 

statement shows the results accomplished by junior inspectors during 

the fiscal years 1939 and 1940: 

Fiscal year 

1939 

Fiscal year 

1940 

Number of inspections made - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 204, 362 284, 081 

Number of dealers violating - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21, 750 28, 057 

Number of violations found - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23, 776 31,618 

Percent of dealers found violating - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10. 6 9.9 

Amounts collected - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $366, 577.81 $542, 453.40 

This division is also responsible for the final determination for the 

approval or disapproval of applications for the establishment of 

industrial alcohol plants, alcohol bonded warehouses and denaturing 

plants, distilleries, fruit distilleries, distillery denaturing bonded 

warehouses, internal revenue bonded warehouses, and rectifying 

plants. Final review of qualifying documents submitted in connection 

with the establishment of bonded field warehouses, bonded storerooms, 

bonded wineries, and breweries is handled by the division. 

Many changes were made in the premises, construction, and equipment of established plants during the fiscal year, requiring examination of applications, notices, bonds, consents of surety, plats, plans, and 

other documents submitted in connection with such changes. The 

total number of such examinations, including those covering 117 new 

plants and 218 plants discontinued, was 18,970. 

The schedule governing the return of master meters from the various 

field districts to the National Bureau of Standards for recalibration 

was revised. Previously master meters were used for approximately 

50 tests of brewers' meters before return to the Bureau of Standards. 

The revised schedule, based upon the history of each meter, prescribes 

the extent of use in terms of barrels, and meters are returned to the 

Bureau of Standards at such time as the continuous counter reaches 

the prescribed limit. The use of each meter is predetermined and 

assures that the meter will remain in use during the cycle of maximum 
Total 626 177, 966.51 

Drawback claims Number 

received 

Amount 

allowed 

Alcohol used in flavoring extracts, and toilet and medicinal spirits exported - - - 

Distilled spirits bottled for export - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Stills exported - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

530 

91 

5 

$168, 333.49 

9, 533.02 

100.00 

36 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

efficiency. This program will result in greater accuracy and longer 

use of individual meters, and will reduce the frequency of return of 

master meters to the Bureau of Standards, with corresponding 

savings in transportation costs. 

LABORATORY DIVISION.—The Laboratory Division comprises a 

central laboratory in Washington, D. C., and 15 branch laboratories 

located throughout the country. 

The division performs all the chemical work for the Bureau of 

Internal Revenue and Bureau of Narcotics; it frequently assists the 

Bureau of Customs, Secret Service, Federal Bureau of Investigation, 

Coast Guard, Post Office Department, State alcoholic beverage control 

boards, and police departments. The greater part of the work, 

however, has to do with the permissive and enforcement features of 

internal revenue and narcotic laws. 

The Washington Laboratory is primarily concerned with basic 

problems, such as the development and modification of methods of 

analyses for the great variety of products submitted and the formulation of denatured alcohol. This necessitates intensive research as to 

the actual components for all alcoholic products; a knowledge of the 

effect of diverse manufacturing processes on related products; abstracting current technical publications; and the testing of proposed 

denaturants. 

Routine activities of the Washington laboratory include the examination of the formulas for all preparations and processes in which 

denatured alcohol is used before permits are -issued by the district 

supervisors for the withdrawal of alcohol. 

Preparations manufactured with tax-paid alcohol and wine are 

examined for the purpose of determining whether they are fit for use as 

a beverage and thus subject to the tax levied on rectified spirits. 

Processes used in distilleries, wineries, breweries, industrial alcohol 

and rectifying plants are reviewed by the laboratory. 

For the Miscellaneous Tax Unit the laboratory examines such 

commodities as oleomargarine, mixed flour, filled cheese, adulterated 

butter, lubricating oils, soaps, etc. 

Members of the laboratory staff frequently conferred with the Federal Alcohol Administration concerning standards of identity and 

labeling of alcoholic beverages; they appeared as witnesses for the 

Government in many cases involving the refund of taxes; they assisted 

in the revisions of regulations and the drafting of Treasury decisions. 

Several members served as associate referees in revising "The Methods 

of Analysis of the Association of Official Agricultural Chemists." 

Except for the research features, the work of the field laboratories 

parallels that of the Washington laboratory. The chemists act as 

advisors to the district supervisors on technical matters; they inspect 

breweries, distilleries, rectifying plants, and places seized by enforcement officers. 

The problem of finding or developing a compound which could be 

used to prevent the beverage use of bay rum, rubbing alcohol, and 

similar preparations has been earnestly investigated. 

The methods for the detection of grape wine in blackberry wine 

have been greatly improved so that the chemists are now in a position 

to give positive evidence in such cases. 

A major portion of the whisky samples submitted every six months 

by all distilleries have been analyzed and the data obtained are being 

studied for interpretation of its significance. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 37 

During the year, 80,006 samples were received by the branch laboratories, which is an increase of 2,127 over the preceding year. The 

laboratory in Washington, D. C., examined 8,893 samples, which is 

1,863 more than during floe preceding year. 

AUDIT DIVISION.—This division is responsible for the tax accounting, assessment, claim, and compromise work of the Alcohol Tax Unit. 

It administers the provisions of internal revenue laws and regulations 

pertaining to the manufacture, storage, tax payment, exportation, sale, 

and use of alcohol, denatured alcohol, distilled spirits, wines, and malt 

liquors. 

Assessments.—During the fiscal year, 18,886 reports of violations of 

the internal revenue laws pertaining to alcoholic liquors were received 

from the field offices, reviewed and audited, and tax liabilities disclosed thereby were assessed, including ad valorem penalties. There 

were certified to the Commissioner for assessment 13,808 items, totaling $3,854,693, listed in the Bureau, and 155,793 items, aggregating 

$92,691,905, listed by collectors. 

Number of claims received and disposed ear l 94 oo

f by Audit Division during fiscal 

year 

Redemption of 

stamps 

Refund Abatement 

Uncollectible 

Total Amount 

On bend July 1, 1939_ - - - - - - - - - -

Received during year - - - - - - - - - - - 

Allowed - - - - - - - - - - - - - - - - - - - - 

Rejected - - - - - - - - - - - - - - - - - - - -

On hand June 30, 1940 - - - - - - - - - - -

79 

2,371 

2, 084 

304 

62 

.--i Cg 0 r? co oo cc NN 

vi.ci 

217 

1, 627 

1, 282 

331 

231 

110 

12,657 

12, 506 

132 

129 

723 

22,482 

21, 528 

1, 006 

671 

$2, 700, 733.65 

9, 695, 320. 05 

5, 456, 661.59 

2, 605, OK 22 

4, 334, 292.89 

Offers in compromise.—At the beginning of the fiscal year there 

were on hand 580 offers, aggregating $40,487. During the year, 

11,010 offers, amounting to $344,765, were received, of which 226 

were forwarded to the Department of Justice and 319 were returned 

to the field offices. During the year, 9,461 offers, aggregating 

$239,807, were accepted, and 1,001 offers, totaling $37,310, were 

rejected, leaving 583 offers on hand at the end of the fiscal year. 

ALCOHOL TAX DIVISION OF THE OFFICE OF THE CHIEF COUNSEL.— 

This division handles the legal work arising in connection with the 

administration and enforcement of the internal revenue liquor laws. 

The work includes the preparation of opinions and briefs relating to 

assessment, collection, abatement, and refund of liquor taxes and 

penalties; compromise of civil and criminal liabilities; and the remission or mitigation of forfeitures. This division prepares citations to 

revoke industrial and denatured alcohol permits, conducts permit 

hearings, and reviews revocation records. It assists the Department 

of Justice in connection with civil and criminal cases arising under the 
38 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

internal revenue liquor laws; gives legal advice to the Deputy Commissioner of the Alcohol Tax Unit, district supervisors, and other 

officials on questions involving interpretation or construction of said 

laws; and reviews all correspondence prepared in the Alcohol Tax 

Unit involving legal questions. 

Work performed by this division, in Washington and in the field, 

during the fiscal year included preparation of 6,818 memoranda, 413 

briefs, 5,242 opinions, 27 parole cases, 247 libels, and 48 indictments. 

Review work included 7,450 case reports, 73 claims of over $5,000 

each, and 10,684 compromise cases. In addition, 6 revocation cases 

were handled, and 912 petitions for remission or mitigation of forfeiture 

were examined and finally passed upon. 

TECHNICAL STAFF 

The Technical Staff is the appellate agency of the Bureau of Internal Revenue in the determination of income, profits, estate, and 

gift tax liability. In general, its work relates to the classes of taxation which fall within the jurisdiction of the United States Board of 

Tax Appeals. It is an independent organization in the Commission-

'er's office and performs its work under the Commissioner's supervision. It consists of an administrative office in Washington and 

10 field divisions comprising 37 local offices distributed throughout 

the United States at points chosen with a view to taxpayers' convenience. The principal duties of these field divisions are (1) to determine 

for the Commissioner the liability of taxpayers who have protested 

the revenue agents' preliminary findings in their cases but have not 

yet filed with the United States Board of Tax Appeals petitions for 

the redetermination of their liabilities, and (2) to consider proposals 

submitted by taxpayers for the settlement of cases docketed by the 

Board. In performing both of these functions the heads of the field 

divisions act as the exclusive representatives of the Commissioner in 

cases coming within their territorial jurisdiction, subject to the condition that proposed settlements in cases docketed by the Board must 

be concurred in by representatives of the Chief Counsel for the Bureau 

who are attached to the field divisions as division counsel. 

The formal procedure prescribed for the handling of income, profits, 

estate, and gift tax cases under the plan of decentralization grants the 

taxpayer distinct procedural rights, within his election, respecting 

the reference of such cases to a Staff field division prior to the issuance 

of a statutory notice. In the case of deficiencies arising from returns 

investigated by the collectors of internal revenue where the collector 

and the taxpayer are unable to agree, after protest, as to the amount 

of the deficiency, the letter of protest together with the return and 

complete file pertaining thereto will be forwarded by the collector to 

the appropriate internal revenue agent in charge for consideration. 

Opportunity will then be granted the taxpayer to request a hearing 

before the internal revenue agent in charge, and from that time, as 

regards potential reference of the case to a Staff division, it is governed 

by substantially the same procedure as is applicable to a dispute arising 

from a return investigated by the office of the internal revenue agent 

in charge. 

In the case of protested deficiencies found by the internal revenue 

agents in charge, as well as protested decisions by such agents in 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 39 

charge in overassessment and claim cases, the dispute may (except 

where criminal prosecution is involved), at the election of the taxpayer, 

be referred to a Staff division for hearing. The procedure requires 

that the internal revenue agent in charge will notify the taxpayer of 

his adverse conclusions and advise him that upon request the case will 

be referred to the appropriate office of the Staff division for hearing, 

but that in the absence of such a request the statutory notice of 

deficiency will be mailed at the expiration of a specified time. This 

notice to taxpayers is contained in the letter whereby the internal 

revenue agent in charge advises the taxpayer of his action on the 

protest. In conferences held in the office of the agent in charge it is 

regular procedure to submit to the taxpayer a form wherewith the 

latter may request that the case be referred to the Staff for hearing. 

It is thus seen that the procedure for reference of cases to the field 

divisions of the Technical Staff requires that the taxpayer be notified 

of his rights in the premises and be given opportunity to elect to avail 

himself of that procedural right prior to the issuance of the statutory 

notice of deficiency. 

Under date of September 14, 1939, there was issued by the Commissioner of Internal Revenue, and approved by the Secretary of the 

Treasury, a Commissioner's mimeograph governing the functions 

and jurisdiction of the field divisions of the Technical Staff. This 

mimeograph supersedes the separate orders theretofore issued respecting such field divisions. The consolidated "charter" of September 14, 1939, is here given in its entirety. 

SEPTEMBER 14, 1939. 

Collectors of Internal Revenue, Internal Revenue Agents in Charge, Special Agents in 

Charge, Heads and Counsel of Field Divisions of the Technical Staff, and Other 

Officers and Employees of the Bureau of Internal Revenue Concerned: 

1. (a) There shall be 10 field divisions of the Technical Staff of the Commissioner's Office, herein referred to as Staff divisions, with designations and territorial 

jurisdiction, respectively, as follows: 

Staff division Territorial jurisdiction 

Southwestern 

Pacific 

Chicago 

Western 

Southern 

Central 

Eastern 

Atlantic 

New England 

New York 

California, Oregon, Washington, Idaho, Montana, 

Iowa, Missouri, Kansas, Nebraska, Wyoming, 

Mississippi, Louisiana, Arkansas, Oklahoma, Texas. 

Illinois, Indiana, Wisconsin, Minnesota, North 

South Carolina, Georgia, Alabama, Tennessee, 

Michigan, Ohio, Kentucky. 

Maryland, Delaware, District of Columbia, VirNew York State. 

New Jersey, Pennsylvania. 

Maine, New Hampshire, Vermont, Massachusetts, 

Nevada, Utah, Arizona, Alaska, Hawaii. 

Colorado, New Mexico. 

Dakota, South Dakota. 

ginia, West Virginia, North Carolina. 

Florida. 

Connecticut, Rhode Island. 

Except as otherwise provided herein, the Staff divisions will perform their 

duties under the Commissioner's supervision, through the Head of the Technical Staff, Bureau of Internal Revenue, Washington, D. C. 
Stan division Local and branch offices 

Boston, Mass. 

New Haven, Conn. 

New York City, N. Y. 

Buffalo, N. Y. 

Newark, N. J. 

Philadelphia, Pa. 

Pittsburgh, Pa. 

Baltimore, Md. 

Wilmington, Del. (branch)• 

Washington, D. C. 

Richmond, Va. 

Huntington, W. Va. (branch). 

Greensboro, N. C. 

Atlanta, Ga. 

Jacksonville, Fla. 

Birmingham, Ala. 

Nashville, Tenn. (branch). 

Detroit, Mich. 

Cleveland, Ohio. 

Cincinnati, Ohio. 

Louisville, Ky. (branch). 

St. Paul. Minn. 

Chicago, Ill. 

Milwaukee, Wis. (branch). 

Indianapolis, Ind. 

St. Louis, Mo. 

Kansas City, Mo. 

Wichita, Kans. (branch). 

Omaha, Nebr. 

Denver, Colo. 

Dallas, Tex. 

Houston, Tex. 

New Orleans, La. 

Oklahoma City, Okla. 

San Francisco, Calif. 

Los Angeles, Calif. 

Seattle, Wash. 

Portland, Ore. (branch). 

New England - - - - - - - - - 

New York - - - - - - - - - - - 

Eastern - - - - - - - - - - - - - 

Atlantic - - - - - - - - - - - - -

Southern - - - - - - - - - - - - 

Central - - - - - - - - - - - - - 

Chicago - - - - - - - - - - - - -

Western - - - - - - - - - - - - -

Southwestern - - - - - - - - - 

Pacific - - - - - - - - - - - - - -

40 REPORT OF C'OMMISSIONER OF INTERNAL REVENUE 

(b) Local and branch offices will be maintained at the following places, and at 

such other places as in the judgment of the Commissioner may appear advisable: 

1 The Wilmington (Del.) office has been discontinued. 

(c) The personnel of each Staff division will consist of a head and an assistant 

head, to be designated by the Commissioner, a division counsel and an assistant 

division counsel, to be designated by the Chief Counsel, and such technical' 

advisors, attorneys, auditors, clerks, and other employees as may be necessary. 

(d) The assistant head of each Staff division will assist the head of the division 

as the latter may direct, and, during the absence of the head from duty within the 

division, will serve as acting head of the division and as such will perform the 

duties of the head in his own name. During the absence of the head from any 

local or branch office on official business within the division, the assistant head 

may perform at such local or branch office, in the name of the head, such of the 

duties of the head as the latter may direct. 

(e) Each local office, including all branches thereof, will be under the immediate 

supervision of a technical advisor in charge, to be designated by the Commissioner, 

except that the duties of technical advisor in charge at one local office in each 

division will be performed by the assistant head of the division ex officio. During 

the absence of the technical advisor in charge from any local office, or during the 

absence of the assistant head of the division from the local office at which he 

performs the duties of technical advisor in charge ex officio, such office will, unless 

the head or the assistant head of the division is there present for duty, be under - 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 41 

the immediate supervison of a technical advisor designated temporarily by the 

head of the division as acting technical advisor in charge. Each branch office 

will be in the direct charge of a technical advisor designated by the Commissioner. 

(f) The assistant division counsel will assist the division counsel as the latter -

may direct, and, during the absence of the division counsel from duty within the 

division, will serve as acting division counsel, and as such will perform the duties 

of the division counsel in his own name. During the absence of the division 

counsel from any local or branch office on official business within the division, the 

assistant division counsel may perform at such local or branch office, in the name 

of the division counsel, such of the duties of the division counsel as the latter may 

direct. 

(g) There will be an assistant counsel in charge for each local office to which 

counsel may be permanently assigned, including all branches thereof, to be designated by the Chief Counsel, except that the duties of assistant counsel in charge 

at one local office in each division will be performed by the assistant division 

counsel ex officio. During the absence of the assistant counsel in charge from any 

local office to which counsel may be permanently assigned, or during the absence 

of the assistant division counsel from the local office at which he performs the 

duties of assistant counsel in charge ex officio, the duties of the assistant counsel 

in charge will, unless the division counsel or the assistant division counsel is there 

present for duty, be performed by an attorney designated temporarily by the 

division counsel as acting assistant counsel in charge. 

2. (a) The head of each Staff division will exclusively represent the Commissioner in the determination of Federal income, profits, estate, and gift tax liability 

(whether before or after the issuance of a statutory notice of deficiency) in all 

cases originating in the office of any internal revenue agent in charge situated 

within the territorial jurisdiction of the division, in which the taxpayers have 

finally protested the preliminary determination of liability made by that officer, 

excepting cases in the pre-90-day status in which the special agent in charge has 

recommended criminal prosecution: Provided, That the Staff division shall not 

eliminate the ad valorem fraud or negligence penalty in any case in the so-called 

90-day status, or the pre-90-day status, except with the concurrence of the special 

agent in charge. 

(b) The head of each Staff division will also have exclusive authority to settle 

by stipulation (1) all cases docketed by the United States Board of Tax Appeals 

and placed upon a calendar for hearing at any place, other than Washington, 

D. C., within the territory comprising the jurisdiction of the division, and (2) all 

cases originating in the office of any internal revenue agent in charge situated 

within the territorial jurisdiction of the division, which are placed on the Washington calendar of said Board of Tax Appeals: Provided, That he shall not make or 

approve a stipulation for settlement in any docketed case except with the concurrence of the division counsel: And provided further, That in the absence of the 

head and the assistant head of the Staff division, the technical advisor in charge 

of any local office shall have authority to settle by stipulation any such docketed 

case, but only with the concurrence of the division counsel or of the assistant 

counsel in charge, in which the deficiency determined in the statutory notice does 

not exceed $500 and the basis of settlement does not involve an overassessment 

in excess of $500. 

3. (a) The division counsel will perform his duties under the general supervision 

of the Chief Counsel. He will advise the head of the Staff division, upon request, 

upon legal questions arising in the determination of income, profits, estate, and 

gift tax liability. He will advise the head of the Staff division also with respect 

to any proposed settlement of a docketed case. He will prepare answers to petitions filed with the Board of Tax Appeals, copies of which wilI be furnished him 

by the Chief Counsel, in cases originating in the offices of the internal revenue 

agents in charge situated within the territorial jurisdiction of the division; and he 

will have exclusive authority to represent the Commissioner in the defense before 

the Board of (1) cases placed upon a calendar for hearing at any place, other than 

Washington, D. C., within the territorial jurisdiction of the division, and (2) 

cases originating in the office of any internal revenue agent in charge situated 

within the territorial jurisdiction of the division which are placed on the Washington calendar of said Board of Tax Appeals, but he shall not stipulate before the 

Board for the settlement of any case except with the-approval of the head of the 

Staff division. The division counsel will consider all memoranda prepared in the 

Staff division directing the issuance of statutory notices of deficiency prior to 

their approval by the head of the division. 

269679-40-4 
42 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

(b) In the absence of the division counsel and the assistant division counsel, the 

assistant counsel in charge at any local office will have authority to concur with 

the head of the staff division or with the technical advisor in charge of that office, 

in a settlement by stipulation of any docketed case in which the deficiency determined in the statutory notice does not exceed $500 and the basis of settlement 

does not involve an overassessment in excess of $500. 

PROCEDURE IN PRE-90-DAY CASES 

4. Each Staff division will accord hearings upon protested cases referred to it in 

accordance with prescribed procedure by the internal revenue agents in charge 

situated within the territorial jurisdiction of the division. It will not, however, 

consider before the issuance of the statutory notice of deficiency any case in which 

no protest has been filed with the internal revenue agent in charge. In any case 

in which protest has been filed with the internal revenue agent in charge, it will 

not be required to consider prior to the issuance of the statutory notice new contentions or new evidence that may be decisive with respect to any major issue, but 

upon the presentation of such contentions or evidence, may refer the issues involved to the internal revenue agent in charge for further consideration and for 

conference with the taxpayer if advisable 

5. When the head of a Staff division has reached a final conclusion with respect 

to any case, he will prepare a memorandum thereof setting forth the exact grounds 

upon which his conclusion rests. This memorandum will be transmitted with all 

the papers in the case to the proper internal revenue agent in charge, who will— 

(a) Certify a deficiency to the collector in accordance with Mimeograph 

3552; 

(b) Issue a statutory notice of deficiency; or 

(c) Transmit the case to the Bureau for the preparation of a certificate of 

overassessment, or other appropriate action. 

JURISDICTION AFTER STATUTORY NOTICE 

6. The Staff divisions will have complete jurisdiction of all cases after the 

issuance of the statutory notice. Upon the taxpayer's request, the head of a 

Staff division may take up for settlement any case in which a statutory notice has 

been issued, and may grant the taxpayer a hearing thereon. Except in unusual 

circumstances, however, he will not rant a hearing in such a case prior to the 

filing of the petition if a hearing has been had in the office of the internal revenue 

agent in charge, or if the taxpayer has refused an opportunity to be heard there. 

7. After the filing of the petition in any case, the head of the proper Staff 

division will continue to have sole authority, subject to the provisions of paragraph 

2 above, for the settlement of the case, and will have the custody of all files, 

papers, and documents relating to the case, which will, however, at all times be 

available to the division counsel for the preparation of the answer to the petition 

and for the defense before the Board of the Commissioner's determination. 

HEARINGS 

8. At any hearing granted by a Staff division, whether at a local or branch office 

or on circuit, the internal revenue agent in charge will be represented if he so desires, or if the head of the Staff division, or the technical advisor in charge of a 

local office, as the case may be, deems it advisable; and at any such hearing on a 

case involving the ad valorem fraud or negligence penalty, the special agent in 

charge will be represented if he so desires. Except as may be otherwise directed 

by the Commissioner, through the Head of the Technical Staff, the conduct of 

hearings and other proceedings by the Staff division will be in accordance with the 

procedure customarily followed by the Technical Staff. 

GENERAL 

9. The intent of the arrangements and procedure above prescribed is to provide 

one single, unified agency, with office facilities at or near the taxpayers' residences 

or places of business, to exercise on the ground, for the Commissioner, all the 

authority which the Department or any of its branches may have under the law 

in the review of protested tax determinations made by the internal revenue agents 

in charge. in the settlement of contested cases, and in the defense of such cases, 

when necessary, before the Board of Tax Appeals. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 43 

10. The term "profits-tax liability" as used herein will be construed to include 

(a) the liability of contracting parties for excess profits on Navy contracts arising 

under section 3 of the Act of March 27, 1934 (48 Stat. L. 505; U. S. C. Title 34, 

section 496), and under that Act as amended by the Act of June 25, 1936 (49 Stat. 

L. 1926; U. S. C. Sup. II, Title 34, section 496), and as further amended by section 

14 of the Act of April 3, 1939 (Public, No. 18, Seventy-sixth Congress, first session), and (6) the liability of contracting parties for excess profits on contracts for 

aircraft for the Army arising under section 14 of the Act of April 3, 1939 (Public, 

No. 18, Seventy-sixth Congress, first session). 

11. Notwithstanding the provisions of paragraphs 2 and 3 hereof, the head of 

each Staff division will have exclusive authority to settle by c stipulation, subject 

to the concurrence of the division counsel, all cases docketed by the United States 

Board of Tax Appeals which originated in the office of any internal revenue agent 

in charge situated within the territorial jurisdiction of such division, which may be 

placed upon a calendar of said Board for hearing at a place within the 

territorial jurisdiction of any Staff division adjoining such division; and the 

division counsel for such division will have exclusive authority to represent the 

Commissioner in the defense of such cases before the Board, subject to the conditions contained in paragraph 3 hereof with respect to the approval of stipulations 

for settlement by the head of the division. 

12. Notwithstanding any of the foregoing provisions, should the Commissioner 

determine that it would better serve the interests of the Government, he may, 

by order in writing, withdraw any case not docketed before the United States 

Board of Tax Appeals from the jurisdiction of any Staff division, and provide for 

its disposition under his personal direction. Similarly, should the Commissioner 

and the Chief Counsel jointly determine that it would better serve the interests 

of the Government, they may, by order in writing, withdraw any case docketed 

before the Board of Tax Appeals from the jurisdiction of any Staff division, and 

provide for its disposition under their joint direction. A copy of each order issued 

under the provisions of this paragraph will be promptly furnished to the Secretary, with a statement of the reasons for the action taken. 

13. The instructions contained in this mimeograph supersede prior instructions 

to the extent that such prior instructions are inconsistent herewith. 

14. Correspondence from internal revenue agents in charge in regard to the 

procedure described herein should refer to the number of this mimeograph and to 

the symbols IT:F. Correspondence from heads of field divisions of the Technical 

Staff should refer to the number of this mimeograph and to the symbols C-TS: 

ARM. Correspondence from counsel for field divisions of the Technical Staff 

should refer to the number of this mimeograph and to the symbols CC:A:OWS. 

15. The instructions contained in this mimeograph will be effective October 1, 

1939. 

Gus T. HELVERING, Commissioner. 

Approved: September 14, 1939. 

H. MORGENTHAU, Jr., 

Secretary of the Treasury. 

Field operations under decentralization.—The work of the 10 Staff 

field divisions is divided into two main classifications: (1) income, 

profits, estate, and gift tax cases not before the United States Board 

of Tax Appeals, including cases in the pre-90-day status, cases in the 

90-day status, and cases involving overassessments and claims; and 

(2) cases docketed by the United States Board of Tax Appeals. This 

work now includes the settlement activities heretofore conducted by 

various agencies of the Bureau in Washington, particularly the former 

conference division of the Income Tax Unit. It also covers all 

settlement work connected with docketed cases, which work was 

previously handled by the Staff, by the Chief Counsel's office, or by 

the two agencies acting jointly. Under the new system all closings by 

agreed stipulation of docketed cases require concurrence of division 

counsel. 

The fiscal year ended June 30, 1940, is the first complete fiscal year 

in which the plan of decentralization has been in operation in all 

respects. All 10 field divisions functioned throughout this period 
REPORT OF COMMISSIONER OF INTERNAL REVENUE 45 44 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

with both docketed and nondocketed jurisdiction. (For statistical 

data reflecting the work of the field divisions for the fiscal year 1940, 

see table 88 on page 173.) The Pacific Division, however, is the only 

division which has been operating under complete decentralization 

for two entire fiscal years, it having been organized on July 1, 1938. 

For that reason the results of the Pacific Division for the past fiscal 

year are given separately. (See table 88 on page 175.) Similarly, 

since the New York Division is the largest Staff division both in 

number of personnel and volume of work handled, the results of that 

division for the past fiscal year are given separately. (See table 88 

on page 175.) 

The statistical data of the Technical Staff are divided in general into 

two parts: (1) the record of the work on contested cases in a nondocketed status; and (2) the record of the handling of cases docketed 

before the United States Board of Tax Appeals. As to contested 

income, profits, etc., tax cases not pending before the Board, the 

Staff opened the year with 3,772 nondocketed cases awaiting Staff 

action, and had net receipts (less transfers and returns without action 

to the agents in charge) of 9,892 cases. The dispositions during the 

fiscal period were 5,852 by settlement and 4,330 on which no agreement 

was secured at that stage. Respecting the nonagreement cases, there 

were 3,572 cases in which statutory notices were directed or sustained 

by the Staff. On June 30, 1940, there were 3,487 nondocketed cases 

on hand awaiting Staff action, which represented a decrease in inventory with respect to the beginning of the period of 285 such cases. 

On the basis of the number of cases, the field divisions of the Technical 

Staff disposed of nondocketed cases, on the average, in about four 

months from date of receipt. 

With respect to docketed cases, there were on hand July 1, 1939, 

4,982 dockets. Net receipts during the fiscal year were 4,256. The 

dispositions included 3,315 dockets stipulated, 267 dockets dismissed 

by the Board for various reasons, and 1,301 submitted to the Board on 

the merits. There were on hand June 30, 1940, 4,355 dockets, representing a decrease in the inventory of such cases by 627 dockets. 

The year's work shows a decrease in pending balances in both 

classes of cases. 

As to the nondocketed work, there were 380 cases on hand July 1, 

1939, in which the statutory notice of deficiency had been sustained 

by the Staff after consideration within the 90-day status or in which 

the statutory notice was directed to be issued by the Staff, but no 

petition had as yet been filed with the Board nor had the 90-day 

period for filing expired. During the year there were added 3,572 

cases in which the statutory notice issued by the agent in charge was 

sustained by the Staff upon consideration within the 90-day status or -

in which the Staff had directed the statutory notice to be issued. In 

the same period, 82 such cases were closed by agreement without 

petition being filed with the Board; there were 761 cases on which 

the taxpayer defaulted, that is, did not file any petition with the 

Board; in 1,549 such cases petitions were filed with the Board; and 

there remained on June 30, 1940, 1,556 such cases awaiting the actual 

issuance of the statutory notice or awaiting the taxpayers' action 

thereon after issuance. 

Of the total number of petitions filed with the United States Board 

of Tax Appeals during the year, the number of 1,549 dockets reprecents cases considered by the Staff prior to the filing of such petitions. 

According to the Staff records, 35.3 percent of the cases in which it 

directed the issuance of the statutory notice were not petitioned to 

the Board. Furthermore, of the petitions filed with the Board, 64.3 

percent thereof filed within the year were not previously considered 

by the Staff. 

Coordination of Staff field activities.—It is considered essential to 

the success of the decentralization of the appellate activities within 

the Bureau that the operation of the 10 field divisions of the Technical 

Staff be subjected to careful examination and analysis by a central 

group in Washington. This control is deemed important in order to 

insure consistent treatment of similar issues by all divisions, uniform 

procedure in the handling of cases and keeping of records, and proper 

distribution and utilization of personnel. Such a central group, operating as the Washington headquarters office under the direction of 

the Commissioner, through the Head of the Staff, is composed of 

three coordinators, each with one technical advisor as chief assistant 

and a number of technical employees as general assistants. This 

group, in the exercise of their supervisory functions above outlined, 

were called upon to (a) originate procedure in the handling and control 

of cases in field divisions, (b) coordinate the procedure of field divisions with other units and divisions of the Bureau, (c) outline or 

clarify Bureau policies as to questions not clearly covered by Bureau 

rulings or Board and court decisions, and (d) personally inspect 

various field divisions and the offices in such divisions for the purpose 

of submitting a report to the Commissioner. 

The Washington headquarters office makes a careful post review of 

all decisions rendered by the field divisions of the Technical Staff 

whether or not they constitute settlements of tax controversies. It 

is through this post review work that the group is enabled to analyze 

the work of the various field divisions and to suggest modifications or 

corrections for their guidance in the consideration of future cases, 

with a view to securing uniformity in the administrative application 

of the revenue laws. 

During the fiscal year coordinators of the Washington office, including the Head of the Staff, made a total of 74 visits of inspection 

to the 37 field offices. In making these visits the coordinators have 

made a special effort to talk with all the technical men of each office 

and the various trips have maintained the personal contact necessary 

to a mutual understanding of the problems connected with the work. 

Visits were also made in the course of these trips to offices of internal 

revenue agents in charge to discuss mutual problems and to ascertain 

prospective flow of work from these offices. 

The Washington headquarters office maintains records and gives 

continuous study as to production and inventories of the various field 

offices and the personnel needs of each office in the light of existing 

inventories and trends indicative of prospective receipts. Necessary 

details and transfers of personnel are arranged to meet the needs of 

the work. 

General operating policies for the organization as a whole are determined in the Washington office. These include technical matters 

of general interest to the entire organization and matters of administrative practice, including the amount of emphasis to be given to 

the various classes of work as conditions change from time to time. 
46 • REPORT OF COMMISSIONER OF INTERNAL REVENUE 

OFFICE OF THE CHIEF COUNSEL 

The activities of the office of the Chief Counsel for the Bureau of 

Internal Revenue include the defense of all Federal tax cases appealed 

to the United States Board of Tax Appeals; the review of refunds, 

credits, and abatements in excess of $20,000; consideration of various 

administrative and internal-revenue tax matters referred to that office 

by the Secretary, the Under Secretary, an Assistant Secretary of the 

Treasury, the General Counsel for the Department of the Treasury, 

the Commissioner, the assistant to the Commissioner, the heads of 

units of the Bureau, collectors of internal revenue, and other branches 

of the Department. They include also the preparation, at the request of the Department of Justice or of the United States attorneys, 

of data for use in the prosecution or defense of tax cases (civil and 

criminal) in suit, and compliance with requests for assistance in such 

cases; and the preparation, revision, and review of regulations, 

Treasury decisions, mimeographs, and rulings for the guidance of the 

officers and employees of the Bureau of Internal Revenue and others 

concerned. The office is divided into seven divisions, viz, Appeals, 

Civil, Interpretative, Penal, Review, Legislation and Regulations, and 

Alcohol Tax.' 

The Chief Counsel's committee, consisting of three members, serves 

in an advisory capacity to the Chief Counsel, Assistant Chief Counsel, 

general assistants, and special assistants, who refer to the committee 

cases from all divisions of the office. The committee considers these 

cases and makes written recommendations as to their proper disposition. Since February, 1938, the committee has been charged with 

the final review of cases involving compromises and closing agreements, previous to their being sent to the Secretary of the Treasury 

for his approval. At the beginning of the fiscal year 1940 the committee had on hand 36 cases; during the year it received 1,905 and 

closed 1,878, leaving 63 cases pending at the close of the fiscal year. 

The Reorganization Section is charged with the duty of protecting 

the interests and claims of the United States in bankruptcy and 

receivership proceedings, including particularly proceedings instituted 

under sections 77, 77B, Chapters X and XV of the National Bankruptcy Act, and arrangement proceedings under Chapters XI, XII 

and XIII of the Act. 

Number of corporate reorganization and arrangement eases handled during the fiscal. 

 year 1940 

Cases pending on July 1, 1939 2, 612 

New cases received during fiscal year 1, 571 

4, 183 

Cases disposed of: 

Cases closed 1, 369 

Consolidated 4 

Changed to bankruptcy or receivership 423 

Changed to arrangement • 16 

Changed to reorganization 2 

1, 814 

Cases pending June 30, 1940 2, 369 

Reported under Alcohol Tar Unit, D. 32. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 47 

In 369 of the corporate reorganization cases closed during the 

year, claims were filed in the amount of $10,023,359.80, and were 

settled for $3,340,581.91. 

In 272 of the arrangement cases closed during the year, claims 

were filed in the amount of $71,050.06, and were settled for $64,820.93. 

In addition to these, there were 728 cases closed in which no tax 

claims were filed. 

Number of bankruptcy and receivership eases dosed during the year 

Cases pending July 1, 1939 6, 272 

New eases received during the fiscal year 5, 327 

11,599 

Cases disposed of: 

Cases closed 4, 277 

Cases transferred to reorganization 8 

4, 285 

Cases pending June 30, 1940 7, 314 

In the 4,277 cases closed relating to bankruptcy and receivership, 

claims were filed in the amount of $6,950,061.06, and the sum of 

$1,642,845.91 was collected. 

During the fiscal year, 5,135 new bankruptcy and receivership cases 

were received, and 192 cases in which tax was involved were added 

in which the debtor companies were originally involved in reorganization proceedings but later went into liquidation. The eight bankruptcy or receivership cases which were eliminated were found to be 

involved in reorganization proceedings. 

There were pending during the year 15,782 reorganization, arrangement, bankruptcy, and receivership cases. Of these cases, 6,099 were 

closed with a total tax collected of $5,048,248.75. There are now 

pending 9,687 cases. 

APPEALS DIVISION.—This division has charge of all cases involving 

income, excess profits, unjust enrichment, estate, and gift taxes 

pending before the United States Board of Tax Appeals. Counsel 

assigned to the various field offices which were created under the 

decentralization program of the Bureau of Internal Revenue prepare 

answers to petitions filed with the Board and advise the various Staff 

divisions upon legal questions arising in the determination of income, 

profits, estate, and gift tax liability. All proposed settlements are 

concurred in by counsel prior to final approval by the head of a Staff 

division. Counsel also have exclusive authority to represent the 

Commissioner in the defense of all cases set for hearing before the 

United States Board of Tax Appeals. 

The division has immediate charge of all cases involving refunds of 

amounts collected under the Agricultural Adjustment Act pending 

before the United States Processing Tax Board of Review. It prepares all pleadings in such cases and appears for and represents the 

Commissioner of Internal Revenue at the trial thereof. In addition, 

the division has the same jurisdiction, duties, and activities in matters 

involving Titles III, IV, and VII of the Revenue Act of 1936 as have 

the Civil, Interpretative, Legislation and Regulations, and Review 

Divisions and the Reorganization, Bankruptcy, and Receivership 
48 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Section with respect to questions involving income, excess profits, 

capital stock, estate, gift, and miscellaneous taxes. 

This division also has a general supervision of the preparation of the 

contents of the records on review in all cases wherein are filed petitions 

for review by the United States circuit courts of appeals of final decisions of either the United States Board of Tax Appeals or the Processing Tax Board of Review. In such proceedings where the Commissioner of Internal Revenue is petitioner, this duty is performed in the 

division subject to approval by the Department of Justice; in cases 

where a taxpayer is petitioner, the division has sole charge of the 

preparation of the record. 

Tables showing the methods of closing cases appealed to the 

United States Board of Tax Appeals and the United States Processing 

Tax Board of Review will be found on pages 179-180. 

CIVIL DIVISION.—The work of the Civil Division includes the 

preparation of statements of fact for the Department of Justice 

in all actions brought by taxpayers to recover taxes and for injunctions 

in the Federal courts, which statements set forth the position of the 

Bureau on the issues involved and contain references to applicable 

sections of the Revenue Acts, regulations, and decisions of the courts. 

The division also assembles the evidence, obtains witnesses, and assists 

at the trial of cases when requested by the Department of Justice; 

prepares recommendations for or against the institution of suits in 

connection with claims of the Government against taxpayers, transferees, bonding companies, and others; and, when suits are recommended, prepares statements for the Department of Justice similar 

to those in actions brought by taxpayers. Stipulations of facts for the 

use of the Department of Justice and for submission to the courts in 

actions in the district courts and in the Court of Claims are examined 

and approved, modified, disapproved, or new stipulations prepared; 

and the division makes recommendations for or against an appeal 

from adverse judgments of district courts and for or against applications to the Supreme Court for writs of certiorari in cases of adverse 

decisions rendered by the circuit court of appeals and the Court of 

Claims. The division makes recommendations for or against acceptance of offers submitted for settlement or compromise of cases pending 

in court. 

It also handles all cases in which liens for taxes are involved in 

mortgage foreclosure actions pending in Federal and State courts. 

The division also considers all applications for the release of Federal 

tax liens and the discharge of property for such liens which are permissible under section 3186 of the Revised Statutes as amended by 

section 613 of the Revenue Act of 1928 and section 509 of the Revenue 

Act of 1934. 

Compromise Section.—The prosecution of claims filed by collectors 

(a) against the estates of deceased taxpayers, (b) against insolvent 

banks, and (c) in liquidation proceedings, including assignments for 

the benefit of creditors, is handled by the Compromise Section. At 

the request of the Department of Justice, this section assists in trials 

involving the above types of claims. 

INTERPRETATIVE DIVISION.—The Interpretative Division prepares 

legal opinions on questions arising under the internal revenue laws. 

It reviews material submitted to it by other divisions of the General 

Counsel's office and by the administrative branches and units of the 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 49 

Bureau of Internal Revenue. It also reviews closing agreements 

covering proposed transactions, and edits the material submitted for 

publication in the Internal Revenue Bulletin. 

PENAL DIVISION.—The Penal Division deals with practically all 

classes of internal revenue tax cases when criminal liability is alleged, 

including among others income and profits tax cases, miscellaneous 

tax cases, and social security tax cases; considers offers in compromise 

of liability where criminal proceedings have been instituted or recommendations for prosecution have been made to the Bureau or by the 

Bureau to the Department of Justice, and prepares opinions construing the criminal and percentage penalty statutes. It also prepares 

opinions as to whether cases closed by agreement under section 606 

of the Revenue Act of 1928, and similar provisions of other Revenue 

Acts and the Internal Revenue Code, should be reopened because of 

"fraud or malfeasance, or misrepresentation of a material fact" ; and 

considers claims for reward under section 3463 of the Revised Statutes 

or section 3792 of the Internal Revenue Code. Whenever requested 

by the Department of Justice, an attorney from this division assists 

in the prosecution of criminal cases. 

At the beginning of the fiscal year, 1,254 cases were pending in the 

Penal Division. New cases in the number of 1,049 were received and 

862 cases disposed of during the year, leaving 1,441 cases pending on 

June 30, 1940, a net increase of 187.. 

Formal claims for reward for information relative to violations of 

internal revenue laws were filed and disposed of during the year ended 

June 30, 1940, as follows: Pending July 1, 1939, 416; presented or 

reopened during year, 322; disposed of during year, 205; pending 

June 30, 1940, 533. Of the 205 claims disposed of, 143 were rejected, 

and 62 allowed in a total sum of $99,887, all of which were paid during 

the fiscal year. The 533 claims pending are awaiting the closing of 

the tax cases to which they relate, the receipt of reports from the 

field officers of the Bureau who are investigating the claims, or administrative action in Washington. There were also 112 informal claims 

disposed of during the fiscal year, which left 111 informal claims 

pending. 

REVIEW DIVISION.—This division reviews overassessments of 

income, excess profits, war profits, estate, gift, and miscellaneous 

taxes proposed for allowance (also deficiencies when coupled with 

overassessments) where the amount of the overassessments in any 

case exceeds $20,000, and proposed refunds or credits of any tax in 

excess of $20,000. It prepares the reports to the Joint Committee on 

Internal Revenue Taxation required by section 3777 of the Internal 

Revenue Code, where the overpayments of income, excess profits, war 

profits, estate, or gift taxes exceed $75,000, and prepares public 

decisions where the overassessments exceed $20,000. It also examines 

and reviews special cases referred to it by the Chief Counsel for the 

Bureau. 

LEGISLATION AND REGULATIONS DIVISION.—The regulations issued 

under the internal revenue laws, including tax conventions with 

foreign countries, and including the profit-limiting provisions of the 

Act of March 27, 1934, as amended, relating to certain Army and 

Navy construction contracts, and the reports on legislation introduced 

in Congress affecting the internal revenue, except as they relate to 

taxes on alcoholic beverages, are prepared or reviewed in the division. 
50 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

In addition, this division considers suggestions for amendments of and 

additions to the various internal revenue laws and prepares reports 

thereon for the consideration of the Commissioner and the General 

Counsel. It participates in the preparation of income tax forms and 

assists in the drafting of tax conventions. 

INTELLIGENCE UNIT 

The Intelligence Unit is principally concerned with the investigation of cases involving alleged evasions of taxes in cooperation with 

revenue agents and deputy collectors ; investigation of charges of a 

serious nature against employees in the Internal Revenue Service; 

investigations of applications of attorneys and agents to practice 

before the Treasury Department; and investigations of prospective 

appointees to the Service. 

During the fiscal year, 1,014 investigations were made of alleged 

evasions of income and miscellaneous taxes, resulting in the recommendation for prosecution in 370 cases, involving 612 individuals. 

There were 160 individuals tried, of whom 147 were convicted and 13 

acquitted. Investigations of these cases resulted in recommendation 

for assessment of additional taxes and penalties totaling $33,319,064. 

There were 2,845 investigations of applications of attorneys and 

agents to practice before the Treasury Department, and 79 investigations of charges against enrolled agents and attorneys. These investigations resulted in the disbarment of 10, reprimand of 2, suspension of 1, and the rejection of applications of 28. Six names were 

stricken from the rolls during the course of disbarment proceedings. 

During the fiscal year, 104 cases of charges against employees of 

the Bureau of Internal Revenue were investigated, resulting in the 

separation from the Service of 63 employees and the prosecution of 28, 

all of whom were convicted. 

There were 1,050 cases of miscellaneous character investigated, 

including investigations of a number of cases for the Bureau of 

Narcotics, the Customs Service, and investigations of persons under 

consideration for appointment to various positions in the Treasury 

Department. Included in this number were applications for appointment to the positions of revenue agents, deputy collectors, and various 

other positions in the Internal Revenue Service. 

CONCLUSION 

I am pleased to report that I have continued to receive full cooperation fron every branch of the Internal Revenue Service in the administration of the internal-revenue laws. 

GUY T. HELVERING, 

Commissioner of Internal Revenue. 

HOG. HENRY MORGENTHAU, Jr., 

Secretary of the Treasury. 

APPENDIX 

STATISTICAL TABLES 

51 
52 RECEIPTS FROM INTERNAL REVENUE TAXES 

r4

E.7.6 

C 

O 

2 

- 

 C 

JaTti 

C 

3 

40 

".0 

0 

C) 0 

. 

70) 

H 

0 

C) 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

..-b 

I2t 

.11,-.

, 

"4

„ore =93 4%E 

6g g g, 

ng.n?8g85g8202nr4PSILUnenggia3g.cnM2gt-ogS2 

Aeg,d.,46g ,.Es

s 1/205g4t,ftjggt; 

.g.,8S,40,Ranc-..,cmN,occtica ,a0=4 

aglgglgiNgzgaggel#Lgt

4tflIgclig el 

or.4- 

...6

L75-4 41g 

FIE

Lg§ ..) „„, tg7laiggVnifgagngIngigagni 

RWOMEUNEkigHtiggggzAlggs225=a 

RAA8R882822A42A2408RA2228222R84888t;R8 ,tm.6. acers- !Iteaaae,iatet,;,1,.; .i a cqa;_ls,7; 

tAk.

ttp. 

.1 

tibri

seQta 

38.: 

s '--ci 

8Ag. 8888142222. 82. 284825828A4. A884228A2 

es,s,w,7,6

ggig2111771E§AIWOMaagatial -gc‘‘,rariaa.6- 4a.z-vtgaa.6,:. 

ri.828A8Am822282828L:426W5A,,R=222 g

.i.rrs' .-re6 .-7 eat .4-7 c4- .6.rT at.. ,,: - 

."' 

tl)tIZ-L, tgtri 

q.,2: „0 

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4,. g.64p7grgg glgUlagag5lOgggt.gtsTRE - . 

Excessprofits 

Navyvessels, Armyand Navyaircraft I 

1g 

ii 

a 

8 gg 

Section 602, 

Revenue Act 

of 1938 

gggflgICAE

21O4R22252258828A2A2V88RA282222802R28 l ggggrIggagggegdglOg:ingg '21g it7-4gIgggatggWggggaggg4.6Vtingqgg 

Income taxes 

Total income 

taxes 

8282RAZAR2A2288:2882'44R2286- N8888R82828 

earealecIgnOWAA- 0504105Ug:Og 

tic.-7zg

gamovggagaiimmmgmcumus ,:fIgge-rg7.;,[5gic.-ice-,e, - -m; 

l pa f phi fen

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828248A2282ARA2A8282APIANAt;R:22R4888AR8 CCCg8ro8ow 

a-R

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Corporation 

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fra

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, ggagara4aaeg ,,fecp 

Collection districts ,2, 

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qq 

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gi 

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14 ..pi 

, ,..0 

REPORT OF COM M 

...e4.06d444

,r;RA2AAWA2A248.2AR82242282

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8

4

2288A52288,-ARS2o.cm-8222 

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832.82RRA2882824842t;A.2822

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glggqggaNggggg4Tg5gg

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2.5ft2W,Z2A22A2888AMA-i.22822

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REPORT OF C'OMMIS'SI

REPORT OF COMMISSIONER OF INTERNAL REVENUE • 

Containerstamps, 1 cent 

per bottleor&V cent if less thanone-half pint 

Red strip 

stamps 

ttagg$4n .5M gg 

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gg 540g "g Igg 0 

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per taxable 

gallon 

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8 

1 c‘f 8 cigE 

883 

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288g 

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8888 

41 8 

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24 

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REPORT OF COMMISSIONER OF INTERNAL REVENUE 

t58g4422528382861 2 8584,25384455g8888 

5dgagg15541gg4dgg1g1ggdg5g4 g5gd 55 

151d115i5g5dggglgdlqgg505g5 ig

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REPORT OF COMMISSIO

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REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIO

gelrgg 

ggilgE 

=3588% 

teux4m 

HEErik"vd 

sx2cusEsts 

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REPORT OF COMMISSIO

8 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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80gAgEnglAIMURVEigVagM

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evt.2. 

k z.g ...-.. at g -..op40- 

.gel-Eggaacaf,g2g 41 ;ggeeE" 

1.gfifignn14051:0; 

90 .0. , 

,,,;.4.c.no41- gAill§21,4i14

n

.3„,qttt 4z. 

i 

i 

. 4 ,p. 

,,,,,, c, 

A 

60 

C

g, 

3, 

6.0 

U 

Ca 

'So TABLE 1 .—licceipts fro 

Fermented malt li 

0 

18s88g888 2..88s 

AgnggWW,; 

ci:44 

gagegg 

888888 

"le t-c 

aN 

0 
Collection districts 

REPORT OF COMMISSION

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

0 

8 

db 

ca a~ 8 

0A,5 

et. 

O 

488 

Te 

E 

CO 

0 

CV ~Oi 

888 

K4' 

1:8 

444A 

2883 

Cf 

OD 

8 

co 0. noo=-on 

.. 

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.AU ON 

8838 

282287.

4..6.... 

MN=np2cOW 

1 

...4a5. 

SS 

82 

8 

8 

r8 

a 

3 

AA 

44 

W V 

WA 

•

0 

4 

4 

=0 

4A' 

888 

CA 

Q

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Co 

8 CO 

Co

2 8 

4 

AO 

SW4 

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8 .MM 

CNO 

Mg 

O 

n 

Co oc.n co co 

48 

8 

8 

8 

U 

0.00.0.0 0.V.WNNMN.00.0..0..A.M.2 

gp

0000ACOW4wn0A.400.6..00n.WOWWWW.M.M. 

.i g 17, gg,,,;46t eggeeg gg5Igggg,4 

Ncomw..w= 8nOgNMn8Mn0W WN‘1

, V OW0 W 

n 0.000.N 0 NM MWM 2 

. NN. .. 

ti 

0. 4 

,

Cg 

„.,,,, .... CM 

Og 

88 

e-te 

gaVg.Mgg 

28'4282282344 

4. 

Wn...WWM../

4 .00-0MNWNWmWNMOMVVO4000. 0n Mer.erM0.m.O.M.0 40==0.=u0m.4.w.mNwnnvw 

,

4 .. . , . 6 46.,6,,666.... 6... ,4, 

tiN 

t4e-t4teee el ae N-, = ggg 4 

. 

CO 

23 

aw 

88 co 

co 

8 

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o . 

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0 

. 

ce 

00 

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a 

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w 2 

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wa 

SR 

CO 

m 

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w<ic 

.w. 

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4 

CO 

g a 

32. 

w a 

8g 

4.6 

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a 

CO 

. 

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nvi 

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. 

6 

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NO.O N00 

6.i6 

mw0 .00M 

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mw . . 

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Mr 

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, =

w 

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.

, 

C

o

0 

t4c66

4584. S g g 224328 

A44Ag4 

4tAAt.4AA 

Sg2!=18.=88.3 

.e4 47 

. .w. 

... .. ..... 

32'4 g '2 g 

4g ,e.e.gg

242 

oc2n ne8

124 

8:2.... 

647 AAA 606 a 

of 

22 ..% .. 

t2

a 

A

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8 

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2 

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3 

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2382848284 

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wggga 'oia.g w coac.co .. .

w 

4... 

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22 w 

aa 

0. 

n n 

g 

• 

4 

8 

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2

4 

2 

222NA:128285 

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8n4A ,o ww,.go, 

46. .

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a

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sws nsm,sne 

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g. A4rZA66'6 

81,

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eg gee ee -r ., . CO gM, 

4

A

2

g 

e 

 

g 

ti 

Large cigars, classified by intended retail prices 

imp 

6S. 

0 

88 

N Ecq 

3 

8 

Am4 

6A 

. A A 

COO 

Q0! 

CO O 

0 

_.41 

glm 8 

cws,amco 

.. 6 

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CO 

n.g 

es. 

4. 

W4 

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di 

mOOMmerw.w 

QNNMODMO.Vm. 

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oomn.n 

n=coco.. 

00 CO 

•ct. 

822824.84 

-

4aw.ww4a 

.11 84 

NNaee 46. 

2:!scigg2IS gUSg

g5455W5$555H5g5P1M

44RS2428222854R23422284$

-rgSS agg-rof

488S4518252524 R2542228582

gg55155 

558258e4 

05g455.1qM05g555P5M

gaggggggggg 

82855288288 

ggage

8888g

e;ese: 

8 8 

8 

8 

Sgtf. 

ggg 

888 

a 

550g$5 

4ingg5q5§Wgggigggigr

44424A42252AV8ESS88225g2

M 

 "Iggg5 ' 

0 

8 

g7I 

55gr8gIggr

ngsgrE2ssgggs

117:" 5e 

0 

. 1'4 .0e.3o A 

EA' 

5 ,44 '12 

Afeao Am 

.

g >"A-.0= ,8 .0 ROBV. 

'41r.g .04 

0,,,WAl 

.FO 

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A 4' ztAfeat.o4sio- E aeao° .. 

4,4 o

t.4g. milTdc 'gg-clE

REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF commassr

0 

O 

ti 

O'a A

0 

ro 

O 

64 

Ca 

C 

IC 

g "Ci 

V 

C 

;ha 

Oleomargarine 

0 

F8 

s 

e 

4-ggvg--ggggggAraLEERRggAgggigAnigaZRERF. 

Regg85R525g488357RR854558555a.5'..5z 

'44 ,2, 45eRgA4Ap4 4'

4 45 A541' 

Special taxes 

Retail dealers 

Uncolored 

oleomarga 

rine,$6 

2'

AREEEHErWMAgRERgAgRRU,EREEE[ 

R458EIR528g4854AR22526524S54Reg8548P 64444 4N-5r 445mAg22542°'4 45 A ''' .4 4-' 

Colored 

oleomarga- rine,$48 

i 

81 

g 

8 

S 

8 

Wholesaledealers 

Uncolored 

oleomarga- rine,MO 

5888885428 

ggggigaing4 

..74m,m. m 

m 

.. 

0

[gERRERRAEAURNEgE[RA 

P25222282P4P55828558A8 ,rNelb-Mttfl.IMMNN ,C7 4 .-7.m 

.. .. 

Colored 

oleomarga 

rine,$480 

I 

m g 8 

A i 

8 .27 

0 

[ 

8 

ii 

88 

l'

88 , ' 8 

R 

8 

a 

8 

R 

4 88 

E 

8 

148 

sot 

.6,, 

1 

. ,,,,- 

St

ON 

88 'e. § " M8 

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8 

'El g4 

85 88 

A 

s ag 

ifil 

a 

s 

, 

8 

Um e. 

,. g 

8 

. . 

iii7",i 

288 

. 

g 

8 

?3. 

5 

°-", 

8 888 R g 4 . 

Tobaccomanufactures—Continued 

. 

E'2 

g8 

1 

R 2gigAngrigilg5Agg65gn

g 85482448885842228425584I2g4g:158 ,IIEE5FEEP 

§n-v2- 

cAfF4Foi gg"

R ari P 

e' 9RE. 

05 . . , .6 . c P 

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, 

olM: ,Sd 4; 

"ale 40 '' 

40E"Pg 

'' 8 

. . 

R g 

% 

g 

g

48 

R 

gas i!teg - -8 

0240= 

g8mgl'A: 

sla! 

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.95igg 

I 

COMA 

28522IR5 8 ,41 

g 

g 584248525854 

RaggrAF

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. plsia 

car 

. „,- . c 

i— 

gni R 

8228 8 

k 

5 

Collectiondistricts 

e 

„: a

e,55 

4 m 

v 

mm 

§02

09. ,, ot. 00-g . 0 0 4 

e mOOP7.40 

g 

il*Iri 

.. 

o 

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5 

W 

D, ,t v 

4 

4 

- 

C 

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- 

_S•gai 

 5 0 .1.4 >am-4 .... 

.zzzgr4 

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E.V 

al..., 

AmW10 °W0 st'..M° 2. 6t

44mE-144E.FXZE=4E

, WW001.4E.FWV24 
Oc 

S 

8 

66 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSIO

• 

E-+ 

Pe 

co 

6 

6 

A' 

0 

cc 

cc 

4. 

cc 

= 

00 

co.t 

0 

0 

P 

0 

cc 

4) 

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Pio 

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741 

4 

nis pe q0 0500

1" 

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•g-0t8.8 a 

M 

4 

0 

014 

4 

Mixed flour 

rt.n 

gg1154 

8 

0 

,E211):84. 

a 

g n n 

.e, 88 

p., 

i 8 8 8 

li g g g 

Processorrenovated butter 

trag 8. 

,toi a 

Egg 

g g 

8 8 

grlaa n 

n-aa 

nongn , 

g g g 

8 g 

g g 

8. 

n g 

. 

8 8 

Manufac- tured or 

sold,etc., 

perpound, 

10 cents 

g 

„ . 

, s a a 

a e 

n g g 

g.c64.gU0rOgcOOSW wa W7 

,Sa.8°O-§ g. 4,Ice gog gaggAS gEligig 

Z'''""73°Z2"-1° Q°SatScianZW44Z.AE 

4§4W2.°011da4g/12; 

44 -* 

Eg P. '9 

sm m2 . ass- amgg--°- 4 

-es 

4 

Er mai 

8 

cc 

8 

a 

8 

ct, 

4 

4 P. 00

>.

o>. ■ 0 82 

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.006 °J2 °Og 2 -gg O tm g

"grflio.o:Ei g 0011eg21 ,. m s4 S

res04g4 0 4 ;,466 4p, r

a800_6840 024s;,,,,,,e1 .

0 Wi.g8t4,1g4MU0881PAV

0.EEzz441R004E - , g002444045?..

0 

0 

REPORT OF COMMISSION

mt-t-,oNoc.Q..= e;.. .v..

... =.N...ip.=e4...

.......

oe66,-i6.60i.eDt4e4 6.

,

:t

..

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......., w. ,1 ..

, . .-0. e

,..:I =MW0N0C-0,.4.=04C4C40 .4, N

c;

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,

:

-

.i aa.

,

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.6

.

0 

c. e, 

M o6g 

0000•00M.0 

00000000 

M . .6 

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M 

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,0

0.D.=

e.i

MC-,..C4,,=00.7N0C-MW

6 e,:eo M

M 

M 

MI

- MC. M C:75 .,.M WO 

NM 

CO 

8 

1-:

sa 

6 

. 

d. 

28 

CO 

8 

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8S 

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8 

.. 

8 

.. 

8 

mmon

ommmmmopmw.mmQmopmmmmr

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,o.mm.m.conmnm

r.: geic;MceMgqt-ZM o

Mo

306

.

4606 

m mr.... mm.r

M, m .ce cqm.

vmmmm.mmv

,

.m oo.mmmmm

m

mm

mm 

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.-.: e.i',4,4a c4•r.i.ia7,6 .-r .i-.i.,,i

0 .

...0,.....c>ow,..

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Nwc,......mc...m. .

m 

...,-....

00 .. .c9 i ....,.m.....

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.

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m...,,,..N 0,00.00.....,,

,

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00 a..,,z .,

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.

.-re-re ef05a 

888888A 88888828888888888

.0.4.064,6600c .eie.se40i 

,.. ,VM0d,W0

0NCOMQ0,.M.d,.M

1-4 .0. ,MC4 0, N . .-1 NMN N C. ,-, N ,-. Ot.tM

888888 

. . . . . . 

...... 

=6.666 

MMWNON 

6 

cd 

8 

r.. 

C•i 

88 

. 

goo 

88 

re4 

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g g 

88 

4 

8 

g4g

8888 

.., 

. 

. ..... 

61. . 

6. 

... 

8128 

g..i.g 

888888 

-4,06. 

c.o.o. ;4

1888

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,o5 ...

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9

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gdgeOguigC6i4Wc6W.M.NI

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P82 2A8 

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t-L--.1-- 

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W0■0.0. 

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coo=0 

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o... 8?

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. 

el 

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C

8 

64 0 

'4-+B 

iL' 2N m me

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7 

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° '' 

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F4Itteg Wei3 O1 

P

4gZ44

54

;1 L9S

1 5e mbp .cpw 

. raaaWnhatAr

24 a

o0 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

4 0 0.41

, ...0 

2 

FiT4 

lea 

$8.00 

4.

00 

5.

09 

2.00 

7.00 

1.00 8.75 

1.00 

5.00 2.25 

2.00 

11.75 

7.15 

1.00 

3.05 

4.25 

Wholesale, 

dealers, $12 

668

8888888888888128888888888888812 888 

W4V1PwASOSSA868i5W65AR 456 

. .. . ..„—. ...,_ — . . 

8 88 8 88 8888888 ?888 88 8 888 

csi g gg SOW 

64tc,i gg oo g14 

I.,-4, .0eqe 

.a. s-, . RZm' . '.' 

.B. 

m 

8 88888 888888888888888882 8 

8 

o ..6.. 

g.6.e46.0,4ge46..g. 6 

lei 

8 NFalti 'F.5.7'. msva--a ,r15sg.,..s 8 

,:- 

,..T. .t 6. ■- ' 6 a 

8n8888882-88888488488'488nn8,S948 88 

,4e4. .e .e,i..e4goo064..-14 .e4d 1 

'"4SS7."` ""m42A.'491--;M 

 gg=m 4""'w 

00 

48 8 sa gaszss 

IRE'S Mn ..=4 88.7 

22 "i A. ,9 10',1 ggg' ;.-mi 

..,„ . 

. c 

.. c, -Te a 

V 

. 

Collection districts 

00:§25' 

..54a1 .641 1. 

<,, mte.n .it pl 5.861fifiteg4)1 

.4.4 P,gcMar iag44:

azzz 

m. .,., m CO. 51 

.1° 1 

55 

°Q1217412g 

p .21 T an4t4zi 

0 m 

 .,.. 

d "F. 

0. 

12 4mA ti t 
REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Marihuana TaxActof 1937 

ii. 

Sgt 

Og 

 - 

St 

eRgli2

88862888 

6 r4

2888g2g83N8g288 

^ 2,1222qPg'25,4 "2e

882P8 

4 g'

888 

4 

Special oroccupational taxes 

.1 

0.. 

8 8888 

o 

8 

AA 

a» 

. 

. 8888 

. 

•

z

.. 

e 

p,„ 

Eg 

Li

888888 

4 d 4 g4 f

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4 f4 fM 4 f6i 4 ffe7]4 4t 

88 88 888 

.i

a 

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, 

P 

8 

p; 

a 

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ggei in 

8P' 

tO

88g88=588882 

l v „rli „ ggt e4C

assn. 

45 n ■1?

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,1 

gcgsg— 

;21°10g 

ta 2 88 .. 

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8 

t 

8 

04Pgr 

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c“a24t 

s ,s 

, . 

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s 

c, el • g 

s 

qo. 

-5 

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g 

0 n 8 0 

Ring 

flag. 

2.o...§ 

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8 

- 

• 0 

P 

ar

g.g2 

2.7g 

a, oa 

N-= 

44t 1

8 • 

.7, 

• g 

8 

el 

2 

e: 

S 

g 

a 

Collection districts 

12.P,2 

2? 

fl 

43RucrOiNi7 vt= 

ti -0-,_*i'4 

g 

w t 

2 

0

.42 

. 

.=.03 

-s.4-4w.poPr.ippEFiwg.214W2NEENEgazze6ge 

.0 

4 4 

EigigtE126. gg-Wg0;itgHt 

pa 

g "0 

212e4aig seZN 

flA:gg.w e, 

ng0 

Sig 

000 

REPORT OF COMMISSIO

2222828=1g2888S228888Seg sgess .ggg.41.4d,..:0;go.4ogagg4.; g,444t,; 

- ,222 --- 0,- -• :1-- 4 . 

3 111

SOP 

2 8 301

19 00'

IZ T

9 3

PG /8 

II V 91 

I PO D9 

19 09'

0011 

Pt 00 

6 8 0' 9

1 1Z P£

LZ 

3 LI 1

1 09'

gL 

t 00 I

4 TS 9

PZI 

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8 88 8 8 8 

A A .4 .. . 

3 00'

7 00

CO 

T CO

1 00'

001 

°'

88888888882882288888888 

; ggt'"e6 2»clignc°226- c'. R 

n8f28g 8 888882828 888g 

2222.'4 g c6 4 r:, 4 f4t4 4f46

88 8 8 

cm 4g 4

001S 

86 00'

8 1 08'6 8 110'

0 g8 88 0 

., 

00T 

1 9 00'

09 00'96 91'

.. 8 . .. . 

10 

.0" 1

11' 10'

. 0 

06 0 

108. 21 

88 8 8 

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9 00'

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ic40),c 3 2 . 0. 

, 0 , li c,..,06 g .04.21 

I'ZZ PI. oP4 o4 i g„08AtEE-1 

Z'g0gPi4e0.0V-SgNr144.0V-S 

"'a not,Ig nadEABBA"gg§f

E.4.1/4c2;.;“..ggnnka.p..?,g

REPORT OF COMMISSIONER OF INTERNAL REVENUE Radiocom- ponents, 5 

percent 

PEKE 

NN :e as ;6F--am 4 

5gAg ' 515'4 Oita g ii ii ii 

1C4 t ii-1 F 45' gg Olga'''. Mechanical refrigerators, 5 Percent 

282S 

. a. 

- 2 Rgg 

Mg 

• N -r 

:41 

48S E SAS R52 ANgE 

454 g "EE gEg 0110 

Electrical 

energy, 3 

percent 

ggggggRgOgg5gggggggglgOgaggkargggggg 

ER88S458282RE$88288$2PgSEEP54R484SR852A 

t151Wg1441411U411441411415441ga 

2-' '' -r 

a,-;

-if aa e4 

Otherautomobilechassis and bodies, 

and motorcycles, 3 percent 

Ng g 

% S5R8 ES g2SPRS$ PPES8RA 8 SR PEER 

'1 q41 EE g4gOgg glOgggg g 5 4154 

- - - g e in ,, , .. comet

a g 

Automobile 

truck chassis 

and bodies, 2 perce nt 

82gERESA8RR8RERZESESP248888g80 g4g.=&egla 

.-r-rgge!-5 .4a 

14g5g5541111151454541.1411544 gg1gWg 

garge a eg.prea,1 4 e-aa 

4 

8 -A '' 

Partsand ac- cessories for 

automobiles 

and motorcycles, 2 percent 

a 

44914511115g1141g54 414141515 445'4441 

SPS8E2SSSARR8ES2PEN 2PAPPRSSR SE8ESEEE 

aRaaa4a cifc‘fl.4 ggg- g4 4 gg 4ggth 

Inner tubes. 

perpound, 4 cents 

g VI a 

":ag1 g 

P EgPA P 8 R2SP 8 R AR8 

4 '4gg 

4 

Lingt*7! 

6 .gg 

eF 

a C. 

4 

A S. ZE 6sassea 6.% gESP 

11g1 g F 41 1,,q511g1 -',1 114g 

P R 1 95 "911 'V 

. . 

g 

Gasol ine, Per 

gallon, n, cent 

gRAERPES R8R.S2SPP8PP84RSPE8I gogE8SR 

ti gggggFOgg giggaggglggORP r:galg 

4 1441041 1444g5W1gg441414 471151 

40a- aZ44 eeer-r e de 

'-' 

A 8ES8S8 ES F8aggSA$885g ER88 gE P$28 

Collection districts 

REPORT OF COMMISSION

as ;4s SA- C;A P SES 

gg gg g 5. gg gg g 14E 

g aa a ga 4-f .4 

a $$ of S 22 g E 

4414 -4.' 4 4 9 

g 

-Vil 6 

ot 

eeee

54N1145g5414 41g4040441g5

ESERFUERggSR PESEZERSZGKER

--gewea aw d.:a4 ---d

PRrggvESSRP PA ggPM4g igR

..7 . 

a6 ;a ease ea c...6 4 S 

9;51 

`RE 

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gaigggiggg 

A8Pf2PRE2222R 28gSASAM88PAE

1455Vg4F44"g 

ge•,1-,:ggari4

22tt

4 g.4-. 4aea eg 

Kr 

ggRiqgggliggg FaggagrOggg 

282U8R838882 gRPREASEVER82 

4ggri„ 7 g4g .6 a ag. 

4 a .. 

2 oo 88 $ 

th ga g . g 

, 

28E RESR E 28 g g g 

W. Egg; i a,:, g g 

E7 g4g4 $ g g 

ts a: 

225ESSE228 288 SPERERA2 8R8 2

UgggEgggglgg agqg grA F.s4

44414 4114 ql 44g15 V 5 999

- g 4 c4 N a 54, 688.63 

329, 176.14 442,589. 31 

483,334. 53 

2, 258,1 41.19 

95, 978.58 

5, 781,609. 76 

23, 348, 361. 27 

1 3. 76 

18, 170, 876. 35 

12,679. 16 

Pi,572,774. 01 

77, 251. 23 

1 2,475. 96 

10, 72S.lb 

752 436.53 

1 7,841, 332. 53 

' 6, 811.253.9 1 

430. 384. 87 

12,193. 05 

137,314. 05 

298,055. 68 238,1 78.58 661 792

95 

SP RgES8R82 ESA SPS2 gggS 

gg 04541g 9 1 clg 4R4g5 145 

aa eb:agge a a.4- ee-ra ea 

8 

-if or N 

[4. 

'‘f 

C) .glq] j P. t.''gi O m 

11.4=1S the vi g -0A1,8 

.411§1.9,thoe0 149 

0p40409 . 4 ,, - og 

--, 444§20 ° 

.. t.2_,,,, a,0,_. 0, v . 

W 2 q"43KSIETE.c 8 it4 

oiE442g33o04.E-E. m2mFWmD»z33
ro

"65 

Pe 

0 

76 

cO. 

C5

4 

. 

"a..

ti 

m 

ed 

o 

q U 

g 

r.4 

i s; 

o 

Qs. 

A 

Manufacturers' excisetaxes—Continued 

REPORT OF 00AEMIESIONER OF INTERNAL REVENUE 

qt 

g 

rgt.taMWSM.6.flTiNrcr5ANO, 5i ,74 th6ZN:6 

14g n5Fika7MflWigggggEggRWEglrigilgg 

334 

2.02222.022e2gR32,--ot-222222c2t-Gc2 .,.-222-: t- 222N,t-222t- ..,22, 

g-I 

-T.,,g...e. ,44 Re6wa44.i' k4-ceirsci or .4:4 eT 

'" 

04623 

t 3 

c 

&cc, uT. ,S4 ce ro 24 2 232:': A 

2 tR4 6: g.eg 6 6666 6 6 6 

nrIS'. e '' r-r- 

'' A242 E 3 R 

Ea2 m

:-44,19 

ag 

Jr. 

Ig°-ig4 

g 

m,o2.420 li: 

,23 a 

Va2.. 

. 

Misbo .9 

Ti 

ce 

Og 

t02. 

rN; 4 

2 

n g 

.1. 

co 

ri 

tig 

E;c8 

nS. 

S38333 $22 448RE 8284 R3 g g 

,40iesc;sd c-ite siieec6 goin t,i,i s-: ci 

O n .. 

.. 

g ' N 

. . 

'-' 

.V4 

.:3 

. . . . . . 

.. 

,5 -5 

,a rye .4- 

4C7, ■■ i F122 tt,.R 282E 822 

°"4 .2 

g ^232R RED g cal 

. 

o66 

Toilet preparat ions 

Toothpas tes, toilet 

soaps,etc., 5percent 

232 2 R3 RR 424R32ER 2 32 A 

Perfumes, 

cosmetics, 

etc., 10 

Percent 

gilLIg°,:gPitgOtraggggg34710Fc 

R2831R2822222232223£422122R234533223S 

- .42 -1,:-... tp:206-7.6.T 222S'age a •J't g 

WS' l' 2 

c 

ni1218 

e.=---6- g 

c.i 

Collectiondistricts 

3 

0 23 ,- 

23QC." v e - ."Es% 

°A)4 

-1.4-14aoPr=dza4o44WM4 ..',;,2z SZP 

2.3ve .. ..._. 6-. ,egt intel 

.gi1),0 20".='=-.° 

m0.) ..-=04 

R EqTh Pa V6 m 

id 3> 

&IQ 

REPORT OF COMMISSION

82. 32P43R233.1R2nRPR222P4NR

i gelggfli gggIt

„,,,,,:,, 

flfilWrigigglag5IMItIg

,,,,s,gg g g " , 

nr.. 

. 

n 

,E Anre - r_ge, n R R 3 

g'i K2 3 g .2 -12 

ae

06 . 

- e D-; a 

g 

g 

c, 

•14 

e •

01 

to 

.,: 

R8RRP K2 3 248A R n; 

.4 ,. . . Rthtt4 I g ?A-ft P 

0e- c.i- -4. 4. a 

334 8 P.2 3MAKE22 2

,. . . .. 

g 

. - cc _7.- 

453:=74 4R 43 2n* 43G A S

Wagglf:Igk

3.2322242328333223334S222R

6 E: Pg'iggggia PA

gc-4Sig. '1 -.5. 4.4t 6.:. 4' ‘giar “S

gE 2 

- k 

. 2 

nor ,,L, 

0›. amp 

40 ° .io.wiz .. oz fa, cd 

>.z„zz :to 

h.43-gg e , 4.E.2 

rol mgg 

.V99 0 c-c.c t 70 c'a. 

,cX8u~ti Q O O PVOO 42b7oui2Igt. 

gttgig ,525 0 f, ...40•644 g,..0t 

S;E;;tnSnAn S S;;;SS "■ S IS'; 

S).4444ZEP.4[408nPF-14.2c24■ I4g1-. 

5 
65 

78 

Lig 

c.) 

A 

pp° 

40 —

GD 

GD 

cpr 

73 

 cc 

cc 

cc 

GD 

0 

t 

cc 

8 

cc 

• 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Crudepetroleum—Sees.604 and 005, RevenueAct of 1934,asamended 

1PRaa1 °.° E 13 41 

Zilliil 

'WV 

!UN 

flit . c ErA A 

. 

A 

. .. 

2 

— 

— .$ 

&I 

Crudepetroleumproduced 

Production 

taxoncrude 

used bypro- ducer,per barrel,;44 

cent 

g

542g 

agi 

A RAI 

a 

A 

4 

. 

National Firearms Act 

Certainshort2-barrel guns 

ti7.1r. 

4

WO 

E -kiz 

512 

 1Ri 

wgE 

s 

8 8 8 

Machineguns,silencers,etc. 

ATpig4 

i... 

=ig:gf 

ilE 

, 

• 

1 5 pzika, ese. 

gg 

82 

g 

8 8 

F. 

d 

Mast 

1-40E0a5 

k&c.g 

... 

0 • 

, 

8 

,, 

8 

2E14 

tinio 

2 

g 

8 

Collection districts 

.4.va. 

ao

g 

6,1 

Ep

41 

s 

g-'4 

5•274 .z. 

25r-httg0;105R 

n

L 

t-gnitt,5,t.wP 

.c±!'i ..4 

cpra4,71'444 2zza 

14 0 >. 

— 

t V ,Ag c5 —.0 

woarotiatre 

p_p8g 

ce&h 

q4 

gl.,eciz 

0.

f•ta 

.fli 

. 61

REPORT OF COMMISSIONE

8 

t • 

I B 90 '

9819 

. 0. 8

. .i.; .4 . 

061 

I £I 'E L9 '

LT 

0 . 8 R .4 

081 BE TS 

88 8 

C•1 A.4 

4 00'

1 00'

8 8 .4 .4 

I 00'I 00'

22t 8 8 

tggg , 

1 '00 00

 289 OS 

L 99 L9 '

E SE W

8E9 SE '

8 

vi 

8 

id. 1 

.,1'64.■ 

m >4 0 

, i4R 

mR44B4DX — >,p, 

›. 0p5R., P4 L- 1„5o 

Ftg>4 '' 4 = 48 a° cp.— E 

- ,,g44b4Pm .04 50 0 0 .61.5ai 

.'"4';91184:5gfitg 

.40004-1 - 

z yi ,t, a3bb.„,,,,D agliataafieEv 0 

zfr„TE.F.4.FsErimooF,E,caa

tM8AMITOt.72E.M2.491tg
80 

Coconut,etc.,oilsprocessed---Sec.6021/2, RevenueActof 1 934,asamended bysec.702,RevenueAct of 1936 

lets, States,and TABLE 1.Receiptsfromspecified sources of inte 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

., 

0.4 42 s . . 0 . 

o' 

4.44.-746 4 4 4e 6 4444464 4 64 

g, -. g 4g ''Ig44 a 

mg 

gclt 

s -r .6 m 

.8S8268 P., R 2-'r. 43 44PP1P8 A 4P 

AgT.4 R 4 g4 P ne=4g.-2,s- RI 9.=t3 

4g rAS8eg gag sm 

t 0, 

ms5fls 

0 

i!",:g5AaW .7.i 

ce 

110g5I n.t4:ii,a8 74 

.1WEie„ C.)7 400= A 

a, 

ct4 , 

IELT,flEsii." 

.s 

841114E1 4.7.' . 4' 

69°tv0100 I" 

w oe it S i2g 

ss s g 

. 

-4g 

cYglat- 

. '8,8 ece gc,i' 

- .,. 

44444°6 4 4 'I 4 4444 4 4 i 

I amB28 q gD agl 4 P486 P g F 

0 s- a 

..,.. - . 4 . -... . b. 

. 

. . . 8 

O._ 8 45.‘q,- 

rg4gil 

toc, 

gIgt 4N4 

otp.,Z3 . c 

6O52.4r 

84.0eta8 

gA'im 

m 

115;nr4 

m 

§g011! 

Dhe .0 .t-dr. 

N g F15g'w ..1. 

e 

4 

m 

4 8 

Pr 

:4=§14 

a, 

Tegte 4 

0 m g 

4 e 4 

A . s 

c - 

Ea8 

Eg 

e.i. 

.'82 4e8 r: 

.„ .,.. 

4if6 a 4 6 84 $ smt-. 

P, 4 n T1 04 

7 P 

4 C4 e 4444 

s ssss 

.. 

4 -4 S 84.S 

st. 

F,7 

.- . 

g4 

t-t. 

§..a, Tm 

Agel tp0a1.4 

.. = 2.zs . . a 

-A,,,,Ige 4 4 

Collect iondistricts 

d 47,4 

dia id , a , 5. 

4co 4. 5 ' 2.0111 

4 , 4k 4 'Ig g 

sm4 

. a 0 1 L ,, .g .0>w,At 

mm ni 

Oo 4t5C, 

a =.10M WI.4a ir] Nad; 

g2 00- 

OF COMMISSION

REPORT 

g6 

ss 

co 

4 

4 

Ci 

4 

CO 

II 0 8 

.blo, 

511. 

S Agg °4e %,z 

a F4P 

g me El.... e. .

o. 

t, owl,to i 

og ,...,..4 

i',,z si.,frotover 4e ,;4

.

0„,w. 

ov.... 5:2 ,.. .4.... 4X8nUngtkg. . 0-1

.7.2flUta'oris zrctE, m, E-izzE.Nwoor.E.E.gflE.p,rno 

8'

AAP 5 4 

848 

s6s 

0 

Doe 

Og 

88 

eSi g 

cs-r 

Lo?.41i -g 

gRWRil gggg

P.R.:3%428 g gg 

4 

ag ss 
Pig 

4 

0 

1 

82 

(zz 

tl 

O 

-12 

eo 

CS' 

0 

Ca 

8 

ti 

g,

8 a' 

,7 

cl 

o 

ti

O 

8 

 co 

4g

= 

. 

'&1 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

A-% 

r02

2.4;8 

°a:B: 

.6. 

og;L9 

83488884888S2428W;45124822 POINZW*Z6.3 

g8848888=8

g,gFiggg888 .4gg44oigg.4gggggei dt.icib:.6g 

1- 288.0 88888N2 48 1 4848 

Fi*I5iggFiggs-Vgggfalgr "'4 "tr 

gt" 

V 

Em 

a danie8, 

88284848884444g2888888828108588288 

4iioioi,:o; "aci.144,:vi gg •g g " - ..... 

170

8888888t-8888 828'828 c8812885a88,8 

4 g2°""28 1"21 85:8`17:2g4: - /'-' 

8- -; .: 

.t:Elia--4 

- .0=

Update 

— L° 

as-8; a 

g.o*.saaa 

Ii

g844185428228882848548248884812882 

4 WUWAID5Vilg5.05ghgftigtil 

aa:-4-:;-- ^ a:a"ge.7:75 acS 

a ilt 

.8 8 a- OD 018 

.°= 2 `288 

 . 21'6SE 

P8 0.9 

P' ° §8 

a 

oo 

42 

:8 8 

• g 

8 SS 

 • r, . 7" 

:28 

... U ,9 

..2,

Cleil-6-‘5S 

0,:ai 

_ 

.1.'a 

ti.88.' 

480 

e, 

"c 

8A 

8 

2 8 a 

e66 

WA 

- !, 

? 

8 S 

.: 

8 8 

8,8 13 AA 

SCrini 

-b- ligrit 

6 8 0t 8 .. 

1 Enggs), 

0 

gS 

fl 

28 

7, 4 

 a 

11 gv., 

242 

, 

;on 

8458 

,„„ 

u--1 

828 

m= 

8: 

g 

8 

v2: 

8328 

4448 

:Ara 

agia 

;mg 

ClOggggItflaiggt4OOP

288225824424482548888844S8841882g8 

I 4ggOggg 

.04.h.;., 

 ; 91

l! 

0; 

44.4i 

saaaa2Aa42.c=14aasansuvao.azsamgnga 

8n8,72algil2gnI4M4WHOMUE4gg 

,Itiaggig5gqgVgAltgaqgpti;IGIV a a 

Collectiondistricts 

n82421 

lk) 

E.9 

smi 

6Ae4VlignA4A4i' 

F. 42 , . 

8B 4 84g- 

''-g4 n1 

m g Oa ol 

1.1 

-2 

,bm 

.b' 

gg4alAgi 

i 5 g-e.g.th ;pso 

inaialni 

OBtt 

ilto, 

c,.... 

REPORT OF COMMISSION

laiglv-rgggrpftvw-lavtg

ggaggValgatIngreAtag

Ramimdaggam374.43;m:43

ggangg

4128484542442882228:.%42852

gOggaggE i : Uibilg

lgggrIgggggeclW

ggticsci 

'45K-1g 

g8R88 

:9:-

[161Magflii 

4:48:;818g8 

,-, 44-D7ff 

ciA

8:8 

4 gP

82

,

888 

884 

348 

, 

2 R 

g 

A 

Lia 

24 

1,-cq 

a 

8 

t-° 

g 

g A4 

•cl 

co 

-I 

2 

4c€ 

48 

a 

; 

ggr

1844 

- g 

-4- 88r 8 

r 

8% 

8 

Ogg 

4882 

gg 

Sg 4828 

g 4 

gag

aggragflggraiarjg 

7.14e4gSg&Mntz3R2n2gg4Sag 

.szoig -4--wgwaa,:g.: ,4e-4- 

g 

R 

men 

AlgOinRWEireitigfing

288:8 g 445 t882 24888g42442g8

. g6E: "ggrIggrAgg'gang1

tl. 

oz4.

Bo 

Xo~

, 

egau 

. 4.IIMI 

d4aogs 

J."Aa0.0o32 0 °4e—.6.44 

4 

2 

0 .4 1.0, 

;at V74 

aap-iF-iaa.p.gizeA.....a.

ggAlifAtagOillhaaDiVia

'k

0 

 47. 

4 

..W4Aop 

44§i 

M 

d 

e-61 04°51 . 

4 

E

IA 

Y ° 1
REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSION

Employment taxes 

E. S 

‘E "f4 

co 

r4.4-. as hg 

G 

raggg22ggg'ag2lAgEmagga.-Ax.2“A.A., 

M71 -iflilflggraniti c4WIEWaaRgi 

-EzEicEgggEi-R44-seEz..Ksegrse‘64,7 

rgig5 N,.RZ5=811 8 74m 52,18 

NN. 

'-' ''''"- " 

eg 

1 

Cx ' 

te. 'ba

-.1137311 

s U q' t t...`4' 

9 7. k ■ x 

alg. 

8n1--:=SgE.T.gg9STX‘622?,A4t-1.26!:=6! 

W4 ljnt0-°°Pgg "P -^P"72° 

 .°1'.`' '' .ci. .'".`cic'S. 11" 1-- ." -• ''°' 'tt7. .°° . -tc.°.c° .`!. . ? 

ggpgg'iggeth2rigggg2:242211p4n,2 

rz.l::,,,=pG7,,,..m;ga;',-, p,Gi- G- :7 

"Vgga .E. 

hikt 

11 ''.'2 2 

g

t'iga, 

g .g g 

284S'gger.88444Z4g=i841384g48A2888 

.40;at.s.iaa..:aaaa ,4,: ,6 aa-7 .i.6.6,6 agog 

.1§876.7.'RR8r48.9 :..224.T.M=SOW.241 R"404,4 t 

r:7.4giggligigPrig gggs'Sgggi E.iit giglgag 

..--z-.." -.6.-:, - --:,,t:- T., --"ri. 

, ,;,26 ,6 .flo 

 Oca ()'S.' 

5s:tap 

thibi 

aLA 

ANA,"62.7===5:A4 M.S 6 R 2 o 5 g1 

 t,:.i.4g64a.:.4.4tt.i.4.it.6. 4 .i.it.4 ■44 

 SAg = M6 m ttfl'flR.S0oSg%*%Tg e.2.Og 2.4F4=0 L3 

i 

MER5iin:TAPAgosa.&48EtAgim4FRa§ 

-1474e!fe4e.-T.4geeae..zarsi r;ge.-re.ra .4.44 

Total carriers 

taxes 

, ,qnggIcTgetgEW4ngr.sgtva4g22 22RE= 

Vgligg agtqWilign

ga3ianlig%L4sgEghsaligFtaA 

i5M4W"-rr 

ei '4 ,-." ce ea eArAre e a ..r 

o on &m

Railroad employ- ees representatives' tax ( 51/2 or 

6 percent of the 

taxableco

mpensation) 

al 

28.W-222 

47.0 A 

g 

gAAA4r

actar<r. . 

<4 gt 

1 

<E.-, 

A

igf2trz 

4 AA L41 

1 

:IA 

48 

Railroad employment compensation( 51/2 or 6 

percent of the 

taxablecorn- • 

pensation) 

52.S.s.11=-4rt-ag,742gra.43:1 c1M-.4215 CF.. 5 AVO'6”c98 .?. 

OLIOWItignalgggInaggill.E4 

Vg iing agg4Wggagg551gEllii r 

Collection districts 

g . 

1

,0'POU, 

4:02 

qo 

'-' ..4.4446E, 4ggra.44.24w4 

" 

b„8,G.,54 

C

O 

F.1- 

itC4 

m t 

 01, 6 

g'n:§5.0.1e 

t 

,.., 

' 

.ra'ZZzil: 

a 

a 

4131ZX 

igV! 

0''< 

ots n 

FoNgggS8SElfl-47.1 Mar

gaantRlignaggE4Ag

-.6 -cic - Ci --4-6.06- m0N: - ui• ,:,: 

grIgh2CiSg44).40-88240,t§?

2:14e." 7,7 d'digc644s44,4' ^:igc-- 

.c4=88nng=nagg:&.7ig>g

.5i4(64g.4a,6g4,66 -caga..iaa(da 

Clagi-tt 

g

...7,12,2e.gt8634"

en

kagOgFOWC41Watel

-:. eae-E.5 :EE- .E664- ex7E-: 

S=16n .flS,-.61-4?F.M.7;12 

l

EZIZKF6W

g1/4;-4 -4az;,45xce.:•.6xco.,i.dg

S.'i.81.4?.?- 4 -4%603.t72.48g -c

ej,,arLzRe4Eig tIceoreEisEzr. Fggeaa.E

LowEIM=2 .fl- 01.6=.44. g<71.8g

aeE:4 .4- 4m .ET.E 

8=-t

t6-44.66456t.44.6,:*4.4.iiit4t-

".2gaggMr4S.VG&R.4g4clat%

-c.:42.tga tA8?4L;-..

ffg.4406.RgE.E.R eeEi..E.NweREEs

,c8.923.2S8'4A.78 14=8:22.g421

..Mg..c;,:- 2.6.,fra'.e.;c1,44,:a .citce-E4 

?fz8C“-, ranglq1VAIgnW

54,8AASSA4U2gAgRAg

Unig e

RLei' W'grIt 411ggrt;iacVan

4 

A 4 g !g858S3 

 gi4E;Az' i.

48A. 

A .A 

a 

4g 

22 

, R

:2 

WFreici..74544:42g?=82?.[Z24:=SAR%

WeingtaRIMAngggannES

:471gge6I11'6,4%/igic4.441VOg0, 

r= .6- as a ,, 

,..e,g„,Z 

.w 

;'Ig 

ZC'.49.0 

Z'O Z PtC) e2I1Z 

,.,.-§i a 

it a) 

-,44,a'o 

t'°-:1 0t9, -1°4--a0 -e-g, 

zregzwEN4/004.E.E. geor2Er.,0

2

.20A, 

o 

“stAgna;eitoz0A 8 st 

Ar

A. 

t 

Allieg

w „, legli 

LAE, v 
O 

rD 

1

0 

86 

Aro. 

A 

a 

tft 

.3 

0 

p

qp 

0 

0 

O 

e!. 

A 

UV 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

-_, H2 

"El 

. 

811 

grta 

Eel 

rplEggaWg.altamtwegteg-'.66-7 

EgaiTgaggIggiERENEETEEEN5giggEEE5Egg 

g,?]4EREE545255E45EiNEE5EggS5gEgEE5 

Miscellaneoustaxes 

W

44.*; 

. 

o

I' --a4 g, 

1 

8888 

$ :2 g.. 

PS 

gEgg gggri4

48448R8288828845264 

1 .6-4gag 4 g54 

, 

it! 

84 

iag" 

tiwgt42'61R474PS824446524.48"64'Th=" 

gOggagglWeiMgigg5gggagag71 

4-88E888888ggP2428488g8APS48S4ggE 

. . 

ra

3o 

4p.8 

e 

E-■ 

gi

Agg8 

7; g 

2 

.

822 

cc zea 

... 

gE 

848 . g . aa . 

AFC1 

4 

22 

Ao: 

88 

6,g4 

..4 

gE2 

g 

Sec.701, RevenueAct of1932, 

asamended 

Leased wires, 

etc.,5 percent 

8

E84822 

'g ig g g a . , 

grigst: 4 

g .

g 484 

. gg g

;°: ,6- 

4 

S 

,E

Mt 

884,S 

,:gg -I 

8 

g 

SR 

88 

g

gE 

e4 

1 

Telegraph,tele- phone,cable, 

and radio 

messages 

gESt4t822g2S888EPES.ti5AS844882St;8 4 R 

ggaggg:4 4gggggagggggdggggagggg5g 

re:6144 4fl.45ggt:°115g -Igrg" 

. 0., 

ql 

it 

mt

RS8 

il 

V. 

e s 

ggg 

t.“-f, 

y. g4465 

Egg84 

1.:1-:, 

82E128 

a 

6 

A 

1.: 

S 

e 

a 

S 

t■ 

g ggg 

e6C.i 

aaa 

gig 

c58. 

.s 

g 

Bitu

minous Coal Actof 1937 

Of thevalue 

of disposals bynoneode 

mines,1913 

percent 

8 

gg

ER2S 

g g g 

R 

dg 

88 

woo 

a Ds no I '

g

4888 

4 g 4 

g g g 

g 

g 4A (442$228 

. g ggggg44 

ogggg 

8S22 8E4 

gg6 OA 

?.-ggg ggR 

t • 

g 

Collection districts 

goiec1 T81417 

1.4rOglia itqL18; 

MMgc5d4Z84MMw.. 

eA 

at 

til 

tall:. 

ti 

P.m 

z 

g 

0g 41 

" n il 

m 

a.aroe 

8..-0-.E 

.11 4 

Uz.M2 

,... 

i 

pt8 

W 

REPORT OF COMM/SSION

c°

4eag egaseemegae gv;o 

5g44gg451641010gI8ggg4gg

g4g45g4ggg5g4gggaggg4gg4g

gg,6asnaggggagagggg..geggg

,1g 1-

a 

 c . 44'2 . " S

a-c-,4

iVnggA 

8488248 

- , a 

gg54ggggE tggg 

4288848PP4882g 

. sea-; -r 

P 

= 

ggggggga

2g4242842Sg848284288448Sg4

gaggggWgflgflg

i

qmiggeagm4gcng4fgagc.4.5e

ggig 

843' 

gg " 

4 

2 

g6 44 

ggggg 

444E8 

g 

g 

8 

4 

g 

t 

F144 

ggg 

484 

E5g 

82P 

. 5 

8 

r 

ES 

. P" 

ES 

. E'g 

P24 

. ' 

8 ggn 

E3 

ggg5EltIggagalgg 

84882.888g88488S424g42g8REE

4g44iAig

gggk=i4ggIggig5 g'gggg

, a 

ii 

gn 

EA 

. 

. 

g . 

. 

g 

g

. 

1 

g 

2 

a . 

g 4 

giasi 

288 

m. c

g 

P 

4

4R 

g g 

R 

4d 

gg 

gg S 84%824444 888 

g 

4.

ggg5541E '5E 

64g4' gal '46 

ES 

8P 

4 g

8

m 

tr 

, It4°, 8.? 

. ttP. 

8 ›, fr 

is 

Z .4 A= — .q cgsp 

Z'41n0) 2°41§ ° 

4mA 

zt.4.AE 

:ao og 

ao.. 

gitaMISEIgigaboo

rq

IA 

, 

44%2Ir 

-40§..

74t.0.4 

.4 g2E. 

8 

2 

8 

2 

- 

P

g
CO

0 

GO 

e; 

0 

CO 

88 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COMMISSION

Total income taxes 

AT 

4,- 

4, °b 

crcri,7=.1%=.x.-=7=7.7= —, 

7 777T -777-7 777 -e. 7--7 

0781 

-i-sth.

222P223:a*=*8125*S*44*a**16AER2EREA*2 E 

wgolgs,gig g 2:3-4,c.egpqs0,2.i.r.g-Ta&. , .r...„..„0„ 

gagag%516g5igag64gWaftraM% 

ei4igtng4.---g;Ieisgt-fcw-5- 4-re-zo- -, -, _ — A :r. 

8E61 

F2,1**%-**clAW2gASS41*A;(**22Rbi** 2 

,o rti4-4-4,4,6,•:.iagsio6,-dgp;,,:c6,6,10.:.64;-4,-:,4,-:4i ,-: 

algigggMMEWl'ag4-"gaigflgggatr: :7 

i-z-m ,:m--w -c.s.56waRam:c.f-r.4-a -r m m,-mmm. ..m. — mp.c.A .. -, gm M 

. . 01 . 

4 6 0d,e 

40t8 

1,7J227 

0,.°-1 -, °°!‘°°7 - '° - 

"7'7771=9 -4 77""'i7777 1 

'°.,! cc. 

7" 7“97-Trin'Ll ,t1 1 1 1 

01435 

82,1**8,1***2%*41A*r*AALfl4E2414°,2 * 

g4ggggggPariaMM*Mtaalgiaggg M 

g-w,lRgg, 

IgpligOOMSUIliliggganiaggflg ,,,E-Reg- ,,_ET,e-g,p; ,,,,7 

6E61 

oi•-rsa

VAtt064001WM411t4tUVAVOI!: t 

**********,=•514gfl8 Ib4AW1182E2 E 

-aliggg14.6da-rac4- -raar-gggRa-NaLrrac a 

iRq,** *Zaa.eAaaa**:;W-*aa***4 

i-wd1Rgg,,?:05,6 g,,,14,As.i-ct-laaocetrcig as 

Corporation 

F btp821 

tAt'o- 

-. 

et7i==;;;;;;;;;;;74 747 

1 77' [ 1 1 t I 1 0461 

mn5..enstRenn.,;rAg4==.422ganzg n 

itgl?AgnAggggagEnWtOngagn4 1,5 

riet06. 6 dgg4gig:ggg4ggIgg 1 

.278.4b:E'RegegR',4,- 04...22E,-S- -9..4.4, .., 

g-wggeg,sti4:46. ,,calgireg ;Ilq g 

6E81 

*52E5****A2****12;46,s'82*4A22E148*E2*4 ,t r= 

kiMM077!OrgFS'AMMggIgng***42 2 M 

Taggaiggliatilal“taillAW0gig g 

-Dgeli,:,1g.TenT-DgiraTaaggi.,1-rg, 4., - ,7%; q g 

114

Cf 

1141 

pl,...., 

0,U -. 

.0=.R0 E 

" 

1010 

'0 

aTi 

-..at g.E- 

.010 

-e 

- 

5

4

.g, 

*°9 ebb4 60 

,,a0m.9p,z•im,pc.z;.aalocueJza, 

P, 

'‘'' 7 

4 

0-...e no.Eq,221p4 oj 

El,, 

i 

 e

E2 .4 m 

trn 

ri ; 

.,' 

Collection districts 

..4 

.4 

2-14 

2 

4)..?„ 

mg 

0,P 

4 

t 

MOUPAOIS4 

= 

tgFece2U7 

P522-:4 

P 4 H44. 

ce .mV, 

-. 

,'51 . g 

. 

4 

P¢ eg 

.- 

=I 

 m 

41-.wal-c .47,0 i654 d Oitt . 2 eL'i 48 

 4At1M22Z&4741 ) 

glmAz 

qg 

.0 o.0 

., 

§ Iq'W 

..

z 

0, 

:I 

El 

fl 

'VI 

z 

it 

t 

-r-:0 .,or7e!.9.:7.909 , 

'7 277'7" ' '7 4 "77.7 ' 77 

SL”:***Vs*ARTSflW47,42ib**4828

gaggilMVIgaggglganiMg

geW tr

Wagrigataggaggggeggig

-icirgc.f.ete:tefie rflgic4,4- 4

22F2 -41*******$g*W44:=2EA18 2;

i'gglarAggglflggggigggis g

go'gg g4c°,15leeS•

gIVigrigggligiftglilkra

6 .64ga3,4-g:,.W

m.bmTOO..NmmOa....wbOO amw

gi41-Zelt,:c4“5.4c,igeie6gedminit,:a1r.1 gr.: 1

1 1 17 11 1 - 77 Ili 

san52,2%4;s1n2gua8sa

::°

gaggigggiggigiggiM5

ggOntililggIteaggglingE 

4b=2- .11i.'64We a4 b":5 47

,,,i40; 

gaggSgiggglIgiaMag

WAfltnlialtallgslatOg

sb*****SVM**A*b.**A27884**

,jf,emzg.:,61.„-g,r-r 1-:g.traetz4;

"'"-1 ""' -c.'"''"'"' c

:cr Pal T11774-' 7 2 T 8 7II TT 

anifillIagttlIdWrea

MOtiCEMMWaiggiggrAggg

**2,7,9;822*A452.222*AS

:46:S g.e

1aPfl6 g.sof R:.74.6 

gMOIOPMFAliggtitra

gegr="Fnantedliantagg 

,t****1rz*******L-:833SEW4***

4tA4 te--Fmrse.e-T4e.i. tcosea--4 . -- -- m. m . 

P, 

'-'4 

atEt.2;... 

A 

t E 

tmow0E.coop.4,E .4:40.4z 

0 

- 

T 

tg " t4 t t 

41 

t 

oat 

Ey> 

4trg 

p,

: 6 5 1 

1U 

==

E.A..EEE 

, tf, t1-4

4a4.4-E0., 

4 

 

4; 

i

It 4 

re 

Zt

Ue.. ,0=8 

tfli -Ea:Eth, M122&214§4e4M.W1 

0 ° 

MVAglhPMigtha

m. 

v 

g 

44 41-9 -g 

E4s4iZ8t E. 

2.6 

'1k9

tio

269679-40-7 
90 REPORT OF COMMISSIONER OF INTERNAL REVENUE Total internal revenuecollections Percentof increase (or de- crease,—) 

000 N O OOO NOa a 7."'7°77`17`!.7"'.77777^7°.777 

.. 1 771471777 ^ 7 V.'" 7^741^7=-2 ,0r.4:07c0461 

8E4X4URE4RVA44$424R1103$%E$GESES4PW52 

aIngMO E 045HOAMAtigggAttiV gA 

InAgggr;g="ligrigg:44Tqaigeoeg6i006011g46174=4100Elganla --,g5411-grs 

8E81 

RZENZ1g8E4W4A224SRW414R4A44R2t4M;VOWE8S4. 4 

elOtitt

gagtin$0gnOngltan'i gn 

 lggaig

0g

40M

at

5160gilla

igIg

igitV 

I4-Iggiiirigc.,4.0v&v..94goceggraIlr-Ev 

Employment taxes, Includingcarriers taxes 

a. 

o r 

' 4- 

i., .: 

e4-A.Id.6

",.-0.,......,...........- 

,?:4;47::14:17.6,4,:ladod..2--7.- 

1 048

,p.smign%na8gzA88emsszRm2ag8gm2g1gs41 

g

rgiWWglaggallginIgalggliati 

VingglgignaggraNgtaggggatg 

. .-r-r ae.i. .s.-.A.i.eceggle-rt.: eYdFf cs:tgetc 

61 61

24g11gMgM

RR288444WER84E*241MEgEMER4S4g41E4S8g4E8 

eRVinggnErMEIVAgIggflggi 

ggnarigUggiargI4Igggrgfigagin0 

Miscellaneous intern al revenue(including 

excessprofits) 

f447 44 

,2,p a t 

R2c1°=r::=r;r:==:7: 7 . . 1 .?- 7 7 . ...i 4 1 -7 .. eng l - 

I MC

nalgOSi

44ZWSRS4E4344E;;IAR4248R44tER446g4RSA44 

laganii ggnAggragrAgggtaigg 

1.

ghtggElFliaggWggEnagaggE0 

- e,13:ig. igt6triiii-.:k4tt:ae c', g--i ggo. 

BEM 

gtgg gflVaVgUglg516taitgggggg5n 

2E44Z24tG407,44Rge74WERg4;1442ASg44,7,4EAREt 

.`cc nM 

a '1t.fftegggil'e^41cigIggt;:.- .-'7:g gge 

Collectiondistricts 

"D 

mm 

4-. 4(6664p7,01:1,s1g4.9, .

174

412i4iite' 

1,4- 0 -gIgAt4; 

-. M ›, g 

E 

t. 4 

, 

2 

Z 

Italmr.2t12010 

r.rflUAw4Zwileira 

REIVAIAZtZV 

..g

:2 

oaf' 

8 y, 0 >.z. 

gi;nqvg 

.z 

m 

0. 

slit@ 

,, 

tt 

REPORT OF COMMISSION

cw,,,,

lcdp:6-4.4c0;f‘;ce.olle f: 

gugg-ggryEaggi4affat-i. 

tellaggilMittlaiticti 

11%ggflaglMaggatOg 

8834g42;14W48$4414A44E24Eng? 

tl

5RAR4EaNt4gMN4=2X8At$444 

gatgggrAagal gAN i

g ggag 

lg

glilga

gg 

 ggaMairga 

ergggegg744W.- gtga'lgar 

ro ee •CrOC* 000 O5 NOM..COInQD.7..ntiN 

4476 `4 444 4ti4E14 6 4 777 4P,4 7 4 7 

;4

agatirialggItagiagOgg 

WalgaggEg4i1006111MA 

23044.22E4SE44E;GX42%2;5$28 

:_si ;;neerge41s 14,.: E F.,is-r-7747.5 

(es F

WEllgW141MMCfri 

f101aggagOggg54PAUM 

Wa.c'flZ2ggroeVaRtZOR88WeM48 

. .. e4no.rof eoc‘.-;,:o,.:.e - rz 

7 . 

"°^°°°cC"ec°°°":9°°'°°°""" i 7 - 7 7 . 7n 7 7 .--1R 

coo 

se gLedgc,gt

galgiggglictiglEIVia.4aV 

ggnflAgilEignaggMVga 

RgAgsr...sa'4,74tm&3g,Tigla 

i a4.r.s eor.iw - "a . r- -'"- ''' 

o7t11 Carolina " "L 

North Dakota First Ohio 

Tenth Ohio Eleventh Ohio Eightee Olclahoma 

nth Ohio 

Oregon FirstPennsylvania Twelfth Pennsylvania Twenty-third Pennsylvania Rhode Island 

South Carolina South Dakota 

Tennessee First Texas Second Texas Utah 

Vermont Virginia Washington West Virginia Wisconsin 

Wyoming PhilippineIslands 
' NC=' N. '"-C4 C38"S=.42Sekni2VM=Gri 

11 1.8 " I 

4tgER 

E141 

'.r.1" M-6a S S4.4 - a .... S 'SS - 4.4 . S .. 

L° "' 

Total internal 

revenuecollections 3 

8;8=VVARV.RPF.VAgring3:108 '42 t888 E 882EIER128 

 A%Wgra12:45gan i nggagglggriWIEgFAI 

qtagtOtils5a5415601564g1Wg°40gti 

zi .4-'Elgikangs40-gq- clgagegeratIrvErvE: 

0 =grealt 8882C38868.7.22R8 MUZE&X 8 :3 Si tn:Mrp 

n51:1 

P-iEa 

tEgo, 

7,t9.s.ingnscenosaaggmla 22 ansagsgrotngssita 

 gailgM5EilggiA§gagg 5 gE4001 

ratgaVgliggtitagglOgraggagElggrgg 

4 .4.4.142.7.6.4,4-ge

gzi,n-rR c; p: -. .61T - 4..; 

'Percent 

ofmiscellaneous 

internal revenue 

pay

ments 

r

'..9 

, 

; 

:RMF,4U;185g884, 8g18.9. 8 AM; 24 AgE 12812.2fl'q.c2g88r185 

 gfltgE4AVflilgEgliggggg ragfAAWM40g5 

 gqag5W ialgiaaggEggiaai gigreEiKikg8EM 

8S718AGRR8S48flW4F.:88g 282=282,W,t2eA8N 

 'flR et.- 25gneTF=A 2 V0S 8 g2 n 8 :2 g 8A2MtE48 

ae,/g Lig4,14,4 ggietzuagg5g-rgei.s ,6glig rocidw 

.. „ „ .....„ ....,, „ ,... 

WgiggE456FIgUrelal5V4Follt i 

t1:14-'2Ing4‘'gpgaw g'ci 'd^clg - fle°641' 

w c t,-z 

'48';847,T-n478 4 F2 fl 8AVAta 5g483847870.7 

4gMitiMgC04H4WW-ArilaarW14 

 6445M5 

Eval 

i Og 

— • - - 

c t,tIncome(includ-

,t tugexcesspro fits) 

on taxcollections 

Li 

1 gi=e'4g 

X848AgASE648A;M888488=8,MTARILT: 

6-

WILWin 

tzg-r-7

R8gLifl§ 

- 7 

.gSggAZ.11=8.T>F4 8 

.-Tigg,:1141g5 

.C;F,gggaggrfi 

gaE4axgmag 

Nah .5s.i.a 

 s a 

N 

g=8

ot-c--gEa 

A888,S'88 c

gggitafti 

taliO-444V 

Cc 

REPORT OF COMM:SSD:ME

92 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

O 

Ca 

e. 

^t 

Ca 

Ca 

0 

Y 

 0 

„, 

C 

Ca 

C. 

 i 

roW88r.MWjE8g 8 

fk3tER8RiZ24°4 9

Y 

8i' 8 

▪ilg! sat s 

3 04 t 

74 ;P 

gtgr

n' a ;.

' 

2 

•

fj51 

4:4 Ot 

t4tt.0 

')'8S1 at8 0 :42 

11 o 

2git 

rt

'8 to8 

. 5 ErE.

EAat 

2°4 

a.g

0o 

o2o 

sy s .= 

, trggg 

0:

ag2Iee 

4 411 

2 0 2 0 

A

▪ 

EW 

84,

2

0 0V9 `

s 

ed 

law cpcio 

04 c59 

„,„ 

Eg 

M§§§§§§§§§§§§§§§§§g§.§.§§§§§.§§§§§§A§.§§§§. 

1*-7. ° 464atII2Eaggri argggr8 R 4 Eie 

 4; 4.ZCE .2 c 4 .-.OgidE8:4.FgZ:;2z 

4 40,4-54 

N'eao;pfe.ges 

§§§§§§§§§§ 

as a.:-ta 

Ca 

8 

Bwa 

r. 
94 REPORT OF COMMISSIONER _ OF INTERNAL RE NIJE REPORT OF COMMISSION

a aa qrae la $ 13178,936, 729. 23 7,889,998. 67 319, 852, 192.48 241, 028.19 21,038, 866.51 281,1 24.12 

SgAleiSS RW4R gi. gAgIEg g- gg gt,..1 

OM:: t gg It 

51, 1 97, 120. 87 

805, 811. 36 

5, 814. 75 

1, 897. 99 

38, 408, 477. 21 

534, 315.31 

3, 796,191. 14 

November 

$19, 996, 793. 97 

13,729, 1 27. 92 

33,

720, 921. 19 576,509. 96 

630, 515. 89 

34,

928, 032. 04 

367, 276.61 

22,642, 036.10 

2, 883, 298. 50 

tOW4tT4ktSin 8148 

gggggg gqg ggg 

ggglift :I E4 'V 

cig- .

r 

61, 019, 942.34 

1,305, 017. 50 

9, 396. 38 

1, 582. 20 

43, 384, 328. 47 

583, 721.26 

4,534, 868. 47 

October 

$27, 309,01 4. 17 

8, 172, 699. 58 

35, 481, 7 13. 75 

090, 498. 78 559, 032. 64 

2 929 n ' 90- LI 

1, 983, 491. 85 

28, 871, 433. 55 

314, 280. 30 

SUSAtt,Fr 4t9...4. :3 VAY: g laggi Pig giR 

tiggge g gi 

- P 

4g.-7 .; g 

os at ansn

1, 394,838. 37 

10, 646. 67 

1, 910. 16 

0, 153, 453. 82 

586, 990. 19 

4, 848, 092.12 

September 

$177, 89(1, 462.29 

161, 177,536.54 

329, 067, 998. 78 

2, 229, 209. 89 ts I

553, 

'ocs 

182. 

069 

 25 '089 ' 5

52, Oa 3 19. 89 5fi 966, 977. 88 

186, 833. 79 

RM8Vej A.92. 8

4 

 zn. 

OHM P,7 Egy, 

Eggqt 4' ttg' 4ga a g 

99 ' sel Ite '

1, 1 97, 086. 63 

10, 571. 04 

1,613. 85 

44, 370, 332. 79 

530, 907. 63 

4, 934, 559. 66 

! m Iso

$21, 325, 483. 29 

10, 477, 499. 80 

69 1 £06' 33'

3691 8E8' ' 59

_ £1 08' 3 £86' 60'34, 087, 824. 951 

3 /1 1 62620 '

Z 11 221 ' ' 0992 ' 3

13 39 ' Z6 3851

. giSc7458n g838 q2a1 

, /gOggil IllgEg ec,t,,, 7g 1 cei i•,,. VSn' 44G° . co. mco 

.. 

'82 II got V ao •

39 6 ' 899 ' 91

83 ' 189 913 ' '

6 ' 196 ' 33

19 0 6E9' 20 '

t Il tit ' it '

09 1 

411 '9 tao 

18 'PLC 8L 

t Igl OE T92 Z too V 16 

, '822 69I ' 18'81 WIC 60 

'1 '959 ze 

1, 189, 849. 79 

7, 855. 64 1, 391.53 

49, 713, 971. 45 

821, 279. 76 

5. 375. 535. 54 

g Lin

$31, 91 2, 05. 71 

1 1,317, 751.01 93,230, M. 72 

469, 187. 95 

526, 651. 26 

- 1 ,31 97 26 08 

1, 937, 190. 01 

24, 493, 590. 87 

273, 368. 47 

M2c9,Afl !..RS IligT.I74 

EggEgg tEEI Egg 

1.1644 I 4I g ,of 

1, 480, 889. 13 

16, 595, 093. 10 

630, 335. 39 

24, 502. 34 

368, 881. 84 429, 703. 90 

2, 618, 879. 17 

389. 40 

71, 893. 29 

665, 0 13. 90 

2,633. 51 

27, 328, 90. 92 

1,437, 107. 51 

51, 654, 891. 90 

1, 038, 306. 52 

9, 247. 92 

2, 064.1 7 

42, 779, 698. 05 

462, 819.25 

4. 261. 805. 07 

s warm

Income,excess-profits,and unjust enrichment taxes: 

Corporation income taxes Individual income taxes. 

Total income taxes 

Excess-profitstaxes 

Unjust enrichmenttaxes(Title III, Revenue Act of 1 936) 

Total 

Capital stock tax Estate tax 

Gift tax Liquor taxes: 

Distilled spirits(imported),excisetax Distilled spirits(domestic),excise tax Distilled spirits,rectification tax Still orsparklingwines,cordials,etc.(imported),excise tax 

Still orsparklingwines,cordials,etc.(domestic),excisetax Brandyused for fortifying sweet wines Rectifiers,retail and wholesale liquor dealers,manufacturersof stills (special 

taxes 

Stamps

) 

for distilled spirits intended forexport 

Stamps for distilled spirits bottled in bond Containerstamps(Liquor Taxing Act of 1934) Floor taxes (levieson tax-paid stocks, inventoriesof January 12, 1934,and 

July1,1938) 

Fermented malt liquors Brewers,retail and wholesale dealers in fermented malt liquors(special taxes) 

Total 

Tobacco taxes: 

Cigars (large) Cigars(small) Cigarettes(large) 

Cigarettes(small) Snuff 

8 9 00'

681 839 ' Zt '

43, 702,121. 10 

1,

529,927.88 

1, 011, 603. 11 

363, 000. 30 

20,907.72 

2,

920 439. 01 ggilEggElgi 

EggraggEggl

gg2.788ASIAt'

,,,,, , , , 

92 . 01

1 29 ' 181 ' OE

49, 976, 193. 58 

1, 401, 331. 66 1, 274, 722. 75 

411,279.60 

39,628. 23 

IT Z ' 296 ' IS

gFtiggF4Vgg

grc7.8FAV,2fl48

eil

gliagglagat.

--. - 

II I 83

Z CI ' L6

as eso ' z ' vs as 

1, 309, 866. 27 

2,806,368. 89 

462,105.80 

4, 962.1 9 

4, 583, 303. 15 

iligglgOggg5

NSRUnAIR7Dg94

ggglIgaggri of 

eet oi• .. 

: 

82,561.07 

70.00 

3I 2 L9169 '

 n 266 ' 01

, 21 0 ' 9 T9 09

1 3' 01 880' '

1 9 ' 99 4 019 9 ' 2

E ' 81 n 9526' 9

Igalggigg

gggfiFigggli

$4W4428Wa8g

er 

eite a'.4 

1 

70, 170.47 

170. 93 

56, 980,041. 61 

1. 830, 830.78 1, 1 23, 946.09 

296, 801. 40 

9, 348. 16 az t 928 * £1 '

ggiWIEggel

FiggOgg$Wigg

c9A42gMSCV48Ww

4g4 -i 4 - -4• 

8 

g 

29 60'

, 2 /991 99 

4 8391 19 Z29 '

1,557,538. 93 

8 13, 272. 80 203, 691. 70 

27,709. 29 

o9 t t ,oz •z 29 

ggnggi

7.1rndX4ggR448

9AW

gigaggliggi

ago , , a 

iIg

.

'P. R 8

4

PW5 c° B 7 

m■c , 

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g — V 

v os !2 .5 g 

OE .

-,i, 

11 

ism 

0.- 

.. _.

wg. w 

.o7 

'F,2t= 

m 

t ilWil

i 2 E

z.t od.. p. 

:-: E:e s 45. :11!

1 11.

4

a; t; =R=

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8 ,18.22—e A

c7.5,.2 E" ree '' lstatolAggag

taxreceiptsforthefiscal year ended June30,1940, bysources 

Oa 

TABLE 4.— Summaryof monthly interns; 
0 

96 REPORT OF COMMISSIONER OF INTERNAL REVENUE O M 1110 . 0 10

a2rig g 

gtg01"1 g 

82554E55 2 '6 

12, 631, 645. 02 

2, 723, 309. 56 

492, 875. 53 

7, 894, 252. 62 

11,110, 437. 81 

November 

ES:-.Ag.55RE A 

atgg 

ggggflgg g 

s -' 

cm 

17, 298, 418. 63 87, 280, 110. 27 

5,729, 441. 64 

20, 167, 191. 13 

113, 176, 743. 04 

6££ 9' 11 831 ' CZ '

October 

01050't

A222282 E 

2 e4 

gro g 

1 13, 148. 757. 95 

6 1, 882, 490. 43 

5, 1 47, 575. 83 

1,517, 792. 06 

'89 'LS RN ' 32

September 

a444 4 

gg$K0 

2222252 

:1 

g 

1 

i 19 h 1 F8Zle

2, 374, 058.57 

490, 849. 19 

9, 443, 266. 55 

31 ' 802 ' NJit

624, 253, 545. 49 

August 

2R5t4PE 44 ,40Pd g 

wwRor w 4 

a..4 . 

14, 096, 626. 80 73, 554, 797. 03 

6,052,374. 03 

17, 840, 1 52. 38 

16 ' Llitit WE '

162 31 ' 1 6' 61 EZ '

t Mo

R7E124E4352 R 

gggiln: 5 .1 

acEwd-re6 ci 

a 

I 2I ' ste t ' se ' st

66, 1 41, 374.54 

. 5, 098, 086. 65 . 1, 514,585. 67 

r zh 21 ' £ '988' 99

006 - ' 060911' 91'

g

a ,73 

S 

2 

ro 4

i2 

O 

4' 

2 5 

O 

4 

8 

4 

A 

1 TABLE 4.—Su nttnary of mon thlyinternal-revenue 

REPORT OF COMMISSION

661 0

' KM

$260, 664, 268. 63 

201, 210,166. 40 461,874, 435. 03 

3,529, 004.17 

753, 395. 03 

966,156,784. 23 

854 46' 0 64'

'61 2 ZETZ6V

1 81 666' 01'

ti

gg

'4

.

w ta

$27, 269, 792. 72 

13, 070, 577. 76 

968 180' 8£'

022 61 '

'Of te 'o '056 at 

zt '000 ' '881 90 

254,228, 79 

24, 205,115. 08 

477, 1 35. 91 

gl

W4

25

m

y [pit

$29, 285, 955. 55 

15, 444, 134. 72 

44, 730, 090. 27 

768, 499. 13 719, 862. 94 

t ts

311, 793. 86 

27, 863, 562. 00 

1, 471, 992. 44 

22

W

rt

-zg

March 

$294, 051, 202. 43 

356, 075, 714. 25 650, 1 26, 916.68 

4, 497, 504. 03 

988, 668. 12 

9 99 ' 921 ' R80ER

192, 436. 73 

25,231, 210. 44 18, 911, 476. 71 

gg

52

gg

_7

d qe eru Ar

l C 3t ' 918 ' 62'

on toe '

70, 308, 713. 31 

637, 609. 74 506, 782. 36 

11 1 6 29 ' TIt NO

177, 367. 52 

26, 572, 420. 21 

1, 850, 022. 41 

43fl54 ASS 222 

ggOggg rigg

. Iggggg g g7 - Ig• 

13 

993 6 

01 

49

1 ISO ' *ego ' zt 

f BI11713 SI

$25, 073, 455. 49 

20, 014, 354. 23 45, 087,809. 72 

601, 061. 58 857,545. 42 

91 ' 499 6 ' '9I , rd

229,420. 70 

25,128, 200. 63 

1, 439, 675. 90 

24A445 R4E 42A• 

gglgt4 egg ga 

gaPig g:g gt 

- 

81 811 

130 

91 60 866' 82'

d 0n 001

Income,excess-profits,and unjustenrichmenttaxes: Corporation incometaxes Individual incometaxes 

Total incometaxes 

Excess-profitstaxes Unjust enrichmenttaxes(Title III, Revenue Act of 1938) 

Total 

Capital stock tax Estatetax Gift tax Liquortaxes: 

Distilled spirits(imported), excise tax Di

till

d 

i

it

(d

ti

)

i

t
98 REPORT OF COMILSSIONER OF INTERNAL MITE= REPORT OF COMMISSION

61 04 t aun $86, 316. 05 614. 37 68,81 7,191.55 1, 682,490. 17 1, 833, 427. 01 862, 272. 10 9,168. 99 4, 387, 358. 27 

V.24y,g82714g, g.sigg 

6EIMEG45=

gagEW12:1E1 

4 .,,=1 RER 

i2g8 

'zig 

43, 886,572. 88 

N MI

693 ' IL

MIS 1 ' 02 ' 98

65, 499, 371. 55 

1, 423, 597. 75 1, 592, 649. 85 243, 841. 10 28,510. 53 

s t ' as ereee l

AROMENER5P

$SgSg=;28.7g8448.7. 

. 

ess 

arlgEfOgni 

,,, es .4 

s4 

14 106 ' 9E1 ' Ili '

 V Bid

12 ' 00

2118 ' 988 ' 96

9 0 roL ' t ZI T 18

1, 602,623. 23 947, 875.75 

285,089. 60 4,218. 66 

688 ' 408 ' ET

EVERPIRW4 

15REM:1RIEHflARg 

W4T.4Rggg2EgriggaM5327.. 

" c.f.c.: , ?; 

29, 606, 030.41 

March 

$107,185. 55 1 15. 05 

45, 092,420. 14 

1,

488, 807. 43 783,871. Pa 394,110. 20 16, 825. 62 

2,

683,705. 08 

XE328g4alr4224 E6 

gralig451q g 

iMIEEEMallEEEERE 

c684. 

a44 s ..s. 28,489,926. 13 

d io nrc tru

.91$ 6 T ZZ 10

4 9 ' 41E4 840 M '

1, 300, 791. 57 1, 042, 803. 68 426,454. 30 

3,

984. 91 

T '144 130 91'

R;c7.:r42taE24■ 2;g8 

$04 .00.qg$0$4 -I8gea 

gragna$64$e L'I-7 

etorTe; ei ri, .4 

11 16 ' 6 I ' TL

y nue re A

94 L' 9

42 11 8

99, 518, 437. 50 

1,465, 721. 60 1, 087,323. 86 495,135, 80 22,080. 64 

3, 020,261. 70 

aleillW

$4$ngagq$1 

a8f.18',;*21z84gRg ei 

NSN—ro5 pi 

igg

8SW, 

g 

1 881q 4 911 88'

g o eggn

Pobacco taxes—Continued. 

Cigarette papersand tubes Leaf dealerpenalties,etc 

Total 

Stamptaxes(Title VIII, RevenueActof 1926,asamended): Bondsof indebtedness, issuesof capital stock, deedsof conveyance,etc Capital stock and similar interestsalesor transfers Playingcards Silver bullionsalesor transfers 

Total 

Manufac turers' excise taxes: 

Lubricatingoils Gasoline Tiresand innertubes Automobiletrucks 

Otherautomobilesand motorcycles Partsoraccessories forautomobiles 

Electrical energy Radiosets,phonograph records,etc Mechanical refrigerators Firearms,shells,and cartridges Pistolsand revolvers 

Toilet preparationsat 10 percent (perfumes,cosmetics,etc.) Toilet preparationsat 5 percent (dentifrices, toilet soap,etc.) Matches 

Brewers' wort and malt 

Articlesmadeof fur Srtinggoods Capomerasand lenses Chewinggum 

Total 

R2 $$a8 2.z48Mg182 2 ,

EURRIM4M REERIPE I 

REHM" -, E,1 . 

91 'WE ' '168 18 

4gggypig7.!8421 .22347-"g 1

RENE8Er 

eRREREERPR iiaRE c4fl s 

LON,r ■4 

c, 

,.'i 

g g 

'" 

E 

13, 742,786. 70 

4.9Pg.-42482 

REERREE' 

MEMIERU 

8 8t2

US

444:888 g 

R W'? M 

.s-g.2 2: 

.,_ 

II ' 022840' ' 01

Gann§ 

RIM:1nel 

4gr2.7ggg88 

ea-- e 

8 84.7„ 82ggg1 .

il 

aS.4g 

auip4r12§ § 

g: b' 

12,762,289. 46 

Fal

g4484g282 l MiEs g ri 

.4?.E44Rii e--. ..- 

$ 

8 8leg8c.'85 4 

.4.. 

MPFER 4 e t--- 

e 

S 

et n ' ti ga 

7471§01§ 

IREgigRAg 

84g1gZ288 

.irci., 4 

R REEEMEER E 

8 8888Fgg8 g Ig2g-, gi °0 4N 

t k 883 ' 00Z84

i 

1 1 

i 

V 

I 'a, 

t 1 to W 

NRz 

2 g 

oazz. g s 

v 

1:11 .g 2g 

:a 4 

2 

c4 11 

w2 

nta 2 rg. 2 

Eg 0! 3: v 2 2v 

42f .9 ,a- 

_,,,

r, , 

w 

g d 

g32 2n 

C 

• e

0- . 5%2 °;02 

;I °' g.,4 

t0'I 5 

1112111 

114.6r 

41041 

..0.-- 2-- 

.0 020

2 e ° 2 

1;17

:-.0 22.E-4 . 

onelEP 

2"

22*ot-00.00..2-g e-r,44:1 1.112i2072q1 2 2 §0212:846 

Pling1111111 2

x 
100 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 5.—Summary of internal-revenue collections, years ended June 30, 1939 

and 1940, by sources 

Source 1939 1940 Increase or decrease (—) 

Income, excess-profits, and unjust enrichment 

taxes: 

Corporation income taxes $1, 122, MO, 800.61 $1, 120, 581, 550.75 —$1, 959, 249.86 

Individual income taxes 1, 028, 833, 796.49 982, 017, 376.17 —46, 816, 420.32 

Total income taxes 2,161,374, 597.10 2,102, 59$ ,926.92 —48, 775, 670.18 

Excess-profits taxes 27, 056, 372.81 18, 474, 201.83 —8, 582, 170. 98 

Unjust enrichment taxes (Title III, Revenue 

Act of 1938) 6,683, 334.64 8, 536, 178. 32 1, 852, 843.78 

Total 2, 185, 114, 304.45 2,129, 609. 307.07 —65, 504, 997.38 

Capital stock tax 127, 203, 008.99 132, 738, 537. 17 5, 535, 528.18 

Estate tax ast 279, 613.14 330, 888, 048.91 —1, 393, 564.23 

Gift tax 28, 435, 596.98 29, 185, 118.03 749, 521.05 

Liquor taxes: 

Distilled spirits (imported), excise tax. __ 25, 014, 597. 12 27, 874, 052. 19 r2, 859, 505.07 

Distilled spirits (domestic), excise tax 258, 560, 244.87 289,857, 903.07 131, 297, 658.20 

Distilled spirits, rectification tax 10, 677, 293.20 11, 854, 090.97 1, 176, 797. 77 

Still or sparkling wines, cordials, etc. (Imported), excise tax 502, 738.14 649, 925.38 147, 187. 24 

Still or sparkling wines, cordials, etc. (domestic), excise tax 5, 892, 576. 96 7, 410, 006. 71 1, 517, 929. 75 

Brandy used for fortifying sweet wines 1, 359, 431.98 1, 306, 774.20 —52, 657.78 

Rectifiers, retail and wholesale liquor dealers, 

manufacturers of stills (special taxes) 7, 152, 386.36 6, 287, 110.46 —885, 275.90 

Stamps for distilled spirits intended for export_ 182. 40 542.50 360.10 

Stamps for .distilled spirits-bottled-in-bond.... 472, 872.71 1,089, 230.00 616,357. 29 

Container stamps (Liquor Taxing Act of 1934). 9, 398, 861.99 10, 185, 132.99 736, 271.00 

Floor taxes (levies on tax-paid stocks, inventories of January 12, 1934, and July 1, 1938)_ 5,427, 570.63 12, 200.32 —5, 415, 370.31 

Fermented malt liquors 259, 703,925. 76 264, 679, 036.03 4,875, 110. 27 

Brewers, retail and wholesale dealers in fermented malt liquors (special taxes) 3, 637, 068.56 3, 197, 151. 29 —439, 917.27 

Total 687, 799, 700. 68 OM, 253, 156. 11 36, 953, 455. 43 

Tobacco taxes: 

Cigars (large) 12, 792, 550.49 12, 897, 763.57 105, 213.08 

Cigars (small) 120, 452. 82 97,885.79 —22, 767.03 

Cigarettes (large) 19, 267. 94 16, 854.96 —2,41298 

Cigarettes (small) 504,036, 932. 48 533,042, 544. 34 29, 005, 611. 88 

Snuff 8, 932,019. 20 6, 708, 556.53 —133, 462.67 

Tobacco, chewing and smoking 54, 757,043. 76 54, 383,802. 79 —373, 240.97 

Cigarette papers and tubes 1, 493, 785.80 1, 279, 507.90 —214, 277.90 

Leaf dealer penalties, etc 7, 153. 25 1, 727. 71 —5, 425.51 

Total 580, 159, 205. 74 608, 518, 443. 59 28, 359, 937.85 

Stamp taxes (Title VIII, Revenue Act of 1926, as 

amended): 

Bonds of indebtedness, issues of capital stock, 

deeds of conveyance, etc 19, 366, 429.92 18,145, 227.94 —1, 221, 201.98 

Capital stock and similar interest sales or 

transfers 17,084, 488.08 15, 527, 950.18 —1, 538, 637.89 

Sales of produce (future delivery) (repealed 

July 1, 1938) 248, 982.30 —248, 982. 30 

Playing cards 4, 141, 166. 60 4,814,430.40 673, 263.80 

Silver bullion sales or transfers 261, 772. 52 193, 736. 79 —68, 035.78 

Total 91, 082, 839.42 38, 881, 395.32 —2, 401, 494.10 

Manufacturers' excise taxes: 

Lubricating oils 30, 496, 636.55 31, 232, 589.30 735, 952 75 

Gasoline 207, 018, 745. 34 226, 186,669.47 19, 167, 924. 13 

Tires and inner tubes 34, 819, 207.57 91, 555, 988.81 8, 736, 281.24 

Automobile trucks 6,007, 662.04 7,866, 070.51 1, 858, 408.47 

Other automobiles and motorcycles 42, 722, 787.97 59, 251, 198. 09 18, 628, 410.82 

Parts or accessories for automobiles 7, 935, 463.89 10, 629, 993.36 2, 694, 529.47 

Electrical energy 39, 859, 173.55 42, 338, 501. 94 2, 979, 328.36 

Radio sets, phonograph records, etc 4, 834, 366.33 6,079, 914.50 21, 245, 548.15 

Mechanical refrigerators 6,957, 679. 22 9, 954, 398.86 2,996, 719. 69 

Firearms, shells, and cartridges 2 978, 019.80 3, 707, 843.88 731, 823.19 

Pistols and revolvers 66, 511.38 89, 508.54 22, 997.15 

Toilet preparations at 10 percent (perfumes, 

oncmatirs, ete.) 10,642,064.17 7, 712,483. 98 — 2,929,580.21 

' Tax rate on distilled spirits (except brandy) increased from $2 to $2.25 per tax gallon, effective July 1, 1938. 

2 Tax on phonograph records repealed as of close of business June 30, 1938. (Collections from the tax on 

radio components and phonograph records were not segregated.) 

REPORT OF C'OMMIS'SIONER OF INTERNAL REVENUE 101 

TABLE 5.—Summary of internal-revenue collections, years ended June 30, 1939 

and 1940, by sources—Continued 

Source 1939 14190 Increase or decrease (—) 

Manufacturers' excise taxes—Continued. 

Toilet preparations at 5 percent (dentifrices, 

toilet soap, etc.) (repealed July 1, 1938)-1 

 Matches Brewers' wort and malt (repealed Ally 1, 1938). 

Articles made of fur (repealed July 1, 1938)._ 

Sporting goods (repealed July 1, 1938) 

Cameras and lenses (repealed July 1, 1938)._ 

Chewing gum (repealed July 1, 1938) 

Total 

Miscellaneous taxes: 

Bituminous Coal Act of 1937 (effective June 

21. 1937) 

Sugar Act of 1937 (effective September 1, 1937). 

Telegraph, telephone, radio and cable facilities 

Transportation of oil by pipe line 

Looses of safe deposit boxes 

Admissions to theaters, concerts, cabarets, 

games, etc 

Club dues and initiation fees 

Adulterated butter, including special taxes 

Renovated butter, including special taxes 

Filled cheese 

Mixed flour 

Oleomargarine: 

Colored 

Uncolored 

Special taxes 

Narcotics (opium, coca leaves, and special 

taxes) 

Marihuana Tax Act of 1937 

Coconut, etc., oils processed (sec. 60254, 

Revenue Act of 1934, as amended) 

Crude petroleum processed, etc. (repealed 

July 1. 3938) ' 

National Firearms Act 

Receipts from other miscellaneous sources, 

including repealed taxes on checks, candy, 

jewelry, soft drinks, and dividends 

Total 

Employment taxes: 

Federal Insurance Contributions Act (2 percent of taxable wages) 

Federal Unemployment Tax Act (employment of 8 or more) 

Carriers taxes (old-age benefits, 536 percent of 

pay rolls) 

Total 

Grand total, all collections 

$889, 347.40 

134, 273.32 

12, 388.60 

368, 053.91 

850, 546.85 

189, 296.89 

110, 779.31 

$45, 242.33 

21, 848.81 

4, 076.30 

159,810. 57 

143,095. 47 

6, 822.13 

2,075. 86 

—$844, 105.07 

5 -112, 424.61 

—8, 312.30 

— 208, 243.34 

—707, 451.38 

—182, 479.71 

—108, 703.45 

396,891,003. 52 447,087, 632. 49 50, 196, 828.97 

3, 317, 259.01 

65, 914,058. 42 

24,093, 718.85 

10, 954, 732.60 

1, 980, 525.03 

19, 970, 801.85 

6, 216, 900.29 

6, 661.06 

8, 488.86 

6, 214.71 

38, 657. 40 

822, 417. 67 

1, 349, 310.98 

567, 550. 40 

4, 537.53 

27, 661, 929. 62 

106, 055. 32 

9, 079.08 

147, 915. 92 

4, 161, 663. 92 

68,145, 357.56 

26, 387, 945.02 

11, 510. 846. 54 

1, 983 933. 79 

21, 887, 916.00 

6, 334, 008.82 

13, 275.31 

7, 002.89 

155.24 

6, 241.83 

30, 758. 77 

759, 463. 51 

1, 223, 377. 75 

605, 395. 66 

4. 702. 60 

22, 744, 354.47 

555.39 

12, 388. 68 

166. 738. 83 

844, 404. 91 

2, 731, 299.14 

2, 274, 226.17 

555, 913.94 

8. 408. 76 

2, 417, 114. 15 

118,008. 53 

6, 614.25 

—1, 485.97 

155.24 

27.12 

—7, 898. 63 

—62, 954. 16 

—125.933.23 

37, 845. 26 

165.07 

—4, 920, 575. 15 

—105,499.93 

3, 309.80 

18. 822. 91 

169, 179, 814. 60 165, 971, 782. 58 3 91, 967. 98 

529, 835, 533. 76 

101, 166, 703. 68 

109, 425, 627. 62 

605, 350, 175. 64 

106, 123, 156. 21 

122, 047, 643.66 

75, 514, 641.88 

4, 956, 452. 53 

12, 621,016. 04 

740, 428, 865.06 833, 520, 975. 51 93, 092, 110. 45 

5,181, 573, 952. 58 5, 390, 452, 346. 78 158, 878, 394. 20 

* The taxes on matches (except the 5 cents per thousand on colored wooden stem) were repealed as of close 

of business June 30, 1938. 

No-sc.—Collections for credit to trust accounts, included in the table above, were as follows: 

1939 1940 Increase er 

decrease (—) 

Corporation income tax (Alaska railways) 

Distilled spirits (domestic) 

Distilled spirits rectification tax 

Wines (domestic) 

Fermented malt liquors 

Cigars (large) 

Cigarettes (large) 

Cigarettes (small) 

Manufactured tobacco 

Coconut oil 

Playing cards 

Brandy 

Total trust fund collections (included above).. 

18, 

$9, 

174, 

12, 

7, 

368, 

6, 

640, 

774.99 

019.14 

962. 68 

1.65 

771.24 

958. 25 

8.07 

064. 91 

100.44 

230. 48 17. 

:32, 

179, 

4, 

4. 

443. 

2, 

046, 

931.19 

315.37 

666. 85 

52.78 

761.24 

284. 26 

22.86 

356. 47 

9. 77 

520. 47 

102.80 

25.30 

—1, 

—$6, 843.80 

5, 296. 21 

—8, 295.83 

51. 13 

—3, 010.00 

74, 326. 01 

14.79 

—3, 708. 44 

—90. 67 

593, 710. 01 

102.80 

25.30 

19, 219, 891.85 17, 689, 040.36 —1, 535, 842.49 
1939 1940 Increase, or 

Articles taxed decrease (-) 

Distilled spirits, excise tax 

Brandy 

Distilled spirits, rectification tax 6, 230.62 

Wines 

Fermented malt liquors 

7, 771. 24 

Cigars, large: 

Class A 

Class B 

Class C 

Class D 

Class E 

Cigars, small 

Cigarettes, large 

Cigarettes, small 

Manufactured tobacco 

Playing cards 554, 812.10 Total 

Non.-Under sec. 3343 of the Internal Revenue Code, the above receipts are covered into the Treasury 

of the United States to credit to the treasurer of the Philippine Islands. 

TABLE B.-Internal-revenue tax on manufactured products from Puerto Rico, fiscal 

years 1939 and 1940, by objects of taxation 

$165,458.57 $11,419.48 

4. BO 

- 1,910.94 

1. 13 

- 3,010.00 

72,183.82 

98.30 

202. 82 

413. 05 

1, 831.88 

-905.87 

14.79 

-3, 708.44 

-90.67 

102.80 

364,649. 84 

247.49 

1,409. 51 

2, 250.74 

405.67 

8.07 

6,064. 91 

100, 44 

631, 739. 25 77,147.15 

$176,878.05 

4.80 

4,319.68 

1.13 

4,761.24 

438,833. 66 

346.79 

1,607.33 

2,863. 79 

1,831. 88 

22.86 

2,356. 47 

 9.77 102.80 

TABLE 6.-Total internal-revenue collections, years ended line SO, 1863 to 1940 

Amount Year Amount Yew Amount 

1863 f $41,003, 192. 93 1890 $142, 594,696. 57 1917 $809,303,690.44 

1884 116,965, 578. 26 1891 146,035,415. 97 1918 3, flaw's. 820.9a 

1865 210,855,864. 53 1892 153,857,544 35 1919_ ___ _____ . 3.851, 150078. 56 

1866 310, 120, 448. 13 1893 181,004,989. 67 1920 5,407,580,261.81 

1867 265,064,938. 43 1894 147, 188,449 70 1921 4, 506 357,061. 96 

1868 190,374,925. 59 1895 143, 246,077. 75 1923_____--- ______ 607,451,083.00 

1869 159, 124,126.-86 1896 146,830, 615.66 1923 2795 , 745,227.57 

1870 184,302,828.34 1897 146, 619, 593.47 1924 2, 795, IA, 257.06 

1871 143, 198,322. 10 1898 170,866, 819.36 1925 2584,140,268. 24 

1872 130,890,096.90 1899 273,489, 573.44 2,865,99019219 

1873 113, 504,012.80 1900 296, 316,107. 57 1927 2,790 an% 12a sa 

1874 102, 191,016. 98 1901 306, 871,669. 42 2,794535, 537. 88 

1875 110,071, 096.22 1902 271, 867, 990. 25 1929 2939154, 37393 

1876 116, 768,096. 22 1903 230, 740,925. 22 1930 _______ .____ 6 041, 145,733. 17 

1877 118, 549, 230. 25 1904 232,903,781.08 1931 2, 926 228,, 042. 69 754. 22 

1878 110, 864, 163. 37 1035 234, 187,976.37 1932 1, 387,729 

1879 113, 449,1121. Mt 1906 249,102,738. 00 1933 I. 

2,

61

672.239.1%.

9,839, TM. 30 

1880 123, 981, 912.30 1907 M9, 664,022. 85 198 7, 399, 435, 572 18 4 62 

OE 135, 229,912. 30 1908 251, 665,950. 04 1935 

1882 146, 523, 273. 72 1909 2;49, 212, 220. 18- 1936 4, 6195,316 . 

1883 144, 553,344.89 1910 289,957, 220. 113 1987 4,6a 195,316. 28 

1884 121, 690,039. 83 1911 322, 526, 299. 73 1938 6, 668,785,314.33 

1886 112, 421, 121.07 1912 321,615,894.69 1939 _______ ____ 6, 181, 573,95 2. 58 

1886 118, 902,869. 44 1913 344, 424,453. 95 1940 5, 340,452, 348.73 

1887 118,837, 301. 06 1914 380,008,893. 98 

1888 124, 326, 475. 32 1965 415, 681,023.86 Total__ 90,583,566,85 1 . 79 

1889 130, 894,434. 20 1916 512,723,287. 77 

II Period of 10 months, from Sept. 1, 1882, the day on which the internal-revenue laws went into practical 

operation, to June 30, 1863. 

TABLE 7.-Internat-revenue tax on manufactured prod cts u from Philippine Islands, 

fiscal years 1939 and 1940, by objects of taxation 

*alines taxed 1939 1940 

Distilled spirits, excise tax $1, 501,033. 87 $2, 512, 145. 56 $1,011, 111. 69 

Distilled spirits, rectification tax 146,026.84 251, 110.01 105,083. 17 

W11209 

1. 65 

51.65 5

1. 65 

50. 00 

.00 

Fermented malt liquors 

Cigars, large: 

 

A 2,017. 42 1,972.80 -44.62 

Class 

Class B 

460. 35 770.55 310.20 

Class C 

2,487. 50 2,41375 -73.75 

Class D 

39.90 23.10 -16.80 

Cigars, small 1, 701.08 1, 452.96 -248. 12 

Cigarettes, large 

Cigarettes. small 14, 955. 81 12,416. 34 -2,539.47 

Total 1,868, 724. 42 I 2, 782, 361. 72 1,113, 837.30 

NOTE.-Stamp sales for Puerto Rican tobacco and liquor manufactures are deposited at San 

n at Sa Jun herein, 

to the 

credit of the treasurer of Puerto Rico, and consequently are not shown in other collection s 

except that liquor taxes amounting to 615,299.28 in 1939 and $2,858.45 in 1940 were collected at the ports of 

entry and were covered into the Treasury of the United States to the credit of the treasurer of Puerto Rice, 

under the Act of March 2, 1917 (sec. 3380, Internal Revenue Code). 

Year 

Increase, or 

decrease (-) 

102 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 103 

INCOME TAX AUDIT 

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

lists made during the fiscal year 1940 by tax years 

(a) TOTAL REGULAR AND JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1917 57 $44,536 $14, 273 $565 $59,374 

1918 85 417,033 203,549 1, 203 621,785 

1919 89 641, 420 50,460 1,194 693,074 

1920 97 321,259 193,546 10, 280 475,085 

1921 72 319,917 282,958 30, 573 833,448 

1922 79 201,469 180,829 56,941 419,239 

1923 • 100 537,933 481,813 15,040 I, 034, 776 

1924 94 393,767 333,003 12,303 739, 073 

1925 127 1, 526, 223 1,187, 870 182,010 2, 896,103 

1926 148 3, 674,107 2, 602,894 83, 160 6,360, 161 

1927 174 1, 738, 702 1, 193, 313 118, 184 3,050,199 

1928 195 3, 234,923 2, 006, 410 130, 737 5,372,070 

1929 286 5,025, 529 2, 798, 870 147,776 7,972, 175 

1930 357 5, 965,449 3, 165, 753 189,637 9. 320,839 

1931 335 2,893,349 1, 263, 850 / 83, 699 4,340,898 

1932 483 3, 811, 533 1, 499, 475 323,170 5,634, 178 

1933 886 9, 415, 332 3,187, 902 779, 953 13, 383,187 

1934 2, 746 17, 917, 354 5, 035, 983 931, 550 23,884,887 

1935 5, 670 20, 930, 299 4, 669, 613 813,985 26, 413,897 

1936 30, 472 48, 659,695 7, 984, 985 1, 441, 268 58,085,948 

1937 68, 301 54, 720, 194 5, 562, 202 1, 247, 252 61, 529,648 

1938 98, 751 46, 747, 312 I, 657, 117 1,052, 727 49,457,156 

1939 5, 298 2, 010, 591 22, 489 28,667 2,061, 747 

1940 8 3, 786 3, 786 

Total 214,907 231, 151, 712 45, 509, 147 7,781,879 284, 442, 733 

(b) TOTAL REGULAR ASSESSMENTS orqr _ ra

rral 

cflo g c 

$43, 152 $13, 186 $121 $56,459 

905, 543 201,426 993 607,962 

624, 222 45, 670 832 670, 724 

294, 897 125, 025 4, 277 424,199 

316,569 282,958 28, 450 627, 977 

153, 917 127, 752 33,834 315, 503 

534, 018 481, 632 13,357 1, 029,005 

391, 509 331, 010 11, 073 733, 592 

1, 038, 005 788, 618 44,963 1, 871, 586 

3, 566, 532 2, 520, 720 42, 843 6,130, 095 

1, 553, 738 1,059, 186 112, 315 2, 725, 239 

3,140, 598 1, 946, 217 90, 371 5, 177, 186 

4, 771, 748 2,646, 112 68, 268 7, 484,128 

5, 734, 923 3,041, 718 99,238 8,875,879 

2, 393, 852 1,008, 170 64, 964 3, 416,986 

3, 265, 067 1, 272,319 128, 576 4,665,962 

8, 575, 235 2, 888,971 513, 465 11,977, 671 

15, 746, 905 4, 395, 517 493, 483 20, 635, 905 

18, 949, 962 4, 209, 971 359, 482 23, 514, 416 

44, 285. 535 7, 220, 800 552,099 52,058,434 

50, 387, 209 5, 075, 078 254, 357 55,716,642 

93, 648,606 1, 498, 831 62,816 45,210,343 

1, 701, 250 21, 186 8, 352 1, 730, 788 

2, 290 2, 290 

213, 339 211, 475, 370 41, 202, 071 2,981, 529 265,958, 970 
Items Penalty Total Tax Interest 

1917 

1918 

1919 

1920 

1921 

1922 

1923 

1924 

1925 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940_ 

Total 

$40, 644 

199,170 

605,165 

193, 913 

103, 465 

77, 566 

85,201 

71, 839 

269, 807 

805,703 

781, 838 

2,507,059 

1,221, 695 

2,974, 754 

1,585,035 

2,234, 518 

4,903, 576 

6,436,956 

13,241, 974 

36.242, 726 

46, 338, 776 

43, 127, 585 

1,699,569 

2, 290 

165, 810, 821 

46 

58 

59 

59 

48 

49 

60 

59 

85 

94 

102 

126 

148 

163 

179 

256 

435 

1, 583 

3, 843 

25,850 

62, 880 

97, 602 

5, 254 

6 

199,044 

$53,849 

257,188 

650,393 

244, 798 

208, 017 

135,744 

158,402 

134, 146 

400,859 

1, 287, 255 

1, 374,726 

4, 185, 154 

1,872,711 

4, 614,915 

2, 265, 982 

3,188,702 

6, 670, 573 

8, 335, 497 

16, 283,010 

42, 489, 488 

51, 190, 302 

44, 633, 278 

1,729,078 

2, 290 

$13, 084 

57, 187 

44, 599 

49, 356 

102, 736 

55, 416 

69,468 

60, 955 

213,583 

472, 118 

552, 428 

1,606, 562 

644.264 

1, 582, 992 

659,448 

858, 219 

1, 641, 785 

1,819, 346 

2,939,20 

5,1940, 052 

4, 632,911 

1, 449, 580 

21,157 

$121 

831 

679 

1, 529 

1, 816 

2,762 

3,733 

1,352 

7, 489 

9, 434 

40,460 

11, 533 

6,752 

57,169 

21, 499 

95,965 

125, 212 

79,196 

101,836 

406, 710 

218, 615 

56,113 

8, 352 

25, 386,376 1, 259, 158 192, 456,357 

1917 

1918 

1919 

1920 

1921 

1922 

1923 

1924 

1925 

1926 

1927 

1928 

1929 

1930 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

Total 

$1, 355 

28, 101 

19, 057 

18. 736 

35, 419 

41, 840 

53,114 

13, 641 

61, 872 

62, 493 

92, 347 

89, 481 

169,509 

51, 618 

34, 349 

81, 369 

243,480 

646, 388 

1, 790, 172 

5, 286, 550 

3, 450,172 

491,974 

1,681 

10,522 I 12, 714, 788 

$45 I 

1,751 

1,121 

9, 851 

36, 267 

39, 676 

47,183 

11, 003 

49, 258 

46, 051 

64, 063 

57, 024 

99, 026 

27, 741 

16, 079 

33, 061 

34,335 

182, 051 

377, 814 

912, 075 

374, 957 

30, 270 

29 

4 

17 

18 

19 

10 

13 

88 

16 

15 

16 

18 

22 

25 

72 

30 

51 

71 

248 

589 

3, 524 

4, 830 

894 

2 

2, 500, 731 1 821,881 I 16, 037, 400 

$162 

153 

2, 748 

17,715 

20,174 

7, 979 

8, 220 

34, 651 

32, 682 

44, 516 

48, 513 

29,283 

23, 845 

18,972 

21, 519 

84, 572 

46, 258 

209,302 

130,782 

39, 823 

5

' 

212 

I 

$1,400 

30,019 

2,331 

31, 335 

89, 401 

101, 690 

108, 276 

32, 864 

145, 781 

141, 226 

200, 926 

194,998 

297, 908 

103,004 

69, 400 

135, 949 

412, 387 

874, 697 

2, 327, 258 

6, 329, 407 

3, 859, 952 

527,456 

1, 710 

104 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 9.-Additional income tax assessments on the Commissioner's ontinued 

and collectors' 

lists made during the fiscal year 1940, by tax years-C 

(e) 

ASSESSMENTS ON AGREEMENT WITHOUT 90-DAY LETTER 

(d) 

ASSESSMENTS ON AGREEMENT AND DEFAULT AFTER ISSUANCE OF 90-DAY 

LETTER 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 105 

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

lists made during the fiscal year 1940, by tax years-Continued 

(e) ASSESSMENTS RASED UPON STIPULATION BEFORE THE BOARD OF TAX APPEALS 

Items Tax Interest Penalty Total 

1917 

--c'ea t”,24S EEME't 

1939 

$1,153 $57 $1, 210 

1918 _________________________________ 178, 272 192, 488 320, 760 

1919 

1920 80,556 64,498 145,004 

1921 175,155 143,955 $8,286 327,396 

1922 32, 238 32, 317 10, 416 74, 971 

1923 50,218 44,838 861 95,917 

1924 172, 641 144, 229 169 317, 039 

1925 572,279 419 202 20 991, 501 

1926 536, 552 372, 650 118 909,320 

1927 382, 601 233, 914 2, 823 619, 338 

1928 444,335 258,790 9 551 703,676 

1929 3, 197,106 1, 796, 593 23, 406 5, 017,105 

1930 471, 785 243, 667 6, 507 721, 959 

1931 538, 007 245, 065 4, 511 785, 583 

1932 4&5,802 192,585 5,972 684,359 

1933 2, 428, 413 802, 587 3, 156 3, 234, 156 

1934 6, 521, 695 1, 768, 372 11, 648 8, 301, 715 

1935 2, 623, 210 583, 511 31, 736 3, 238, 457 

1936 2, 436, 954 410, 784 13, 362 2, 861, 080 

1937 551, 099 61, 643 371 613,113 

1938 1, 776 193 I, 919 

1940 

Total 2, 679 21, 879, 847 7, 959, 819 125, 913 29, 965, 578 

(f) ASSESSMENTS MADE AFTER DECISION BY THE BOARD OF TAX APPEALS 

1920 2 $1, 692 $1, 370 $3, 062 

1921 1 2,530 $633 3, 163 

1922 3 2,273 343 482 3,098 

1923 5 345, 483 320, 143 784 668, 410 

1924 5 133,388 114,823 1,332 249,543 

1925 8 134, 047 106, 595 2, 803 243, 495 

1926 9 2,161, 784 1, 629, 901 609 3, 792, 294 

1927 13 298, 952 208, 781 24, 516 530, 249 

1928 5 39, 743 25, 841 27, 774 93, 358 

1929 31 183, 348 106, 229 6, 827 296, 404 

1930 44 2, 236, 766 1, 187, 318 11,917 3, 936, 001 

1931 34 188,461 87,578 19,982 296,021 

1930 66 463,378 188,454 5,120 6543,952 

1933 133 999,766 360,284 300,525 1, 660, 555 

1934 311 2, 191, 867 625,748 356, 381 3, 123,996 

1935 252 1,344, 606 309, 446 11,608 1, 665, 660 

1936 131 319, 305 57,909 1, 245 378,459 

1937 38 47,162 5,565 548 53,275 

1938 3 27, 361 18,838 1, 491 47,690 

1939 

1940 

Total 1, 094 11, 069, 912 5, 355, 146 774, 577 17,199, 635 

269679-40--8 
106 REPORT OF COMMLSSIONER OF INTERNAL REVENUE 

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

lists made during the fiscal year 1940, by tax years-Continued 

(g) TOTAL JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1917 $1, 384 $1, 087 $444 $2,915 

1918 11,490 2.123 210 13,823 

1919 17,198 4,790 362 22, 350 

1920 26,362 18, 521 8,003 50,888 

1921 3, 348 2,123 5, 471 

1922 47, 552 33,077 23,107 103,736 

1923 3,917 171 1,683 5,771 

1924 2, 258 1, 993 1, 230 5, 481 

1926 488, 218 399, 252 137,047 1, 024, 517 

1926 107, 575 82, 174 40, 317 230,066 

1927 184,964 134,127 5,869 324,960 

1928 94, 325 60,193 90, 368 194,884 

1929 263,781 152, 758 81,508 488,047 

1930 230,526 124,035 90,399 444,980 

1931 549,497 255,680 118,735 923,912 

1932 548,468 227, 156 194,594 988,216 

1933 840,097 298,931. 266,488 1, 405, 518 

1934 2,170, 449 640, 466 438, 067 3,248,982 

1935 1, 980, 337 459,842 459, 503 2,899, 482 

1936 4,374,180 764, 185 889,169 8, 027, 514 

1937 4, 332,985 487,126 992,895 5,813,006 

1938 3, 098, 616 158,286 989,911 4,248,813 

1939 309,341 1,303 20,315 330,959 

1940 1,496 1,496 

Total 1, 568 19, 678, 342 4, 307, 076 4, 800, 345 28, 783, 783 

(h) JEOPARDY ASSESSMENTS UNDER 13ANKRUPTCY AND DISSOLUTION PROCEDURE 

$216 $176 $54 $4449 

7, 224 5,875 3,612 16,711 

37,878 28,747 15 66,441 

4, 761 3, 452 1 8, 21, 

1, 904 935 2,331 

1, 837 1, 113 2,951 

1,572 868 2,434 

135 45 34 21 

23, 536 8,200 7,943 39, 67' 

674,892 198,730 9,604 883, 22 

640. 329 150,090 13,709 804, 12 

805,285 138,472 27,101 970,86 

&30, 297 78,784 31,002 940, OB 

460, 075 19,305 8, 746 486, 12 

54, 055 780 18,350 73,18 

3, 543, 296 835, 582 118,171 4,297,02 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 107 

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

lists made during the fiscal year 1940, by tax years-Continued 

(i) FRAUD JEOPARDY ASSESSMENTS 

Items Tax Interest Penalty Total 

1917 

"' SV ZSR R" °"°-'" - ---

$1,384 $1,037 $444 $2,915 

1918 11,490 2, 123 210 13,823 

1919 16,982 4,814 308 21,904 

1920 19, 138 12,648 2, 391 34,175 

1921 3, 393 2, 123 5,471 

1922 47, 552 33, 077 23, 107 103, 736 

1923 3, 917 171 1, 883 5, 771 

1924 2, 258 1, 993 1, 230 5, 481 

1925 488,218 399,252 137, 047 1,024, 517 

1926 69,897 53,427 40,302 183,826 

1927 180,203 130, 675 5,888 316,746 

1928 92,921 59,258 40,3138 192,545 

1929 251,944 151,645 81,508 485,097 

1930 228,954 123,177 90,399 442,530 

1931 599,497 255, 680 118,735 923,912 

1932 548,331 227,111 194,560 968,002 

1933 816, 561 290, 731 258, 545 1,385,837 

1934 1,495, 567 441, 736 428,483 2, 365, 758 

1935 1, 340, 008 309,552 445,794 2,095,359 

1936 3, 568, 875 825,713 862,068 5, 056, 656 

1037 3, 502, 888 408, 342 981, 893 4,872, 923 

1938 2, 63S, 591 138, 981 983,185 3, 760, 687 

1939 255,286 573 1,965 257,774 

1940 1, 498 1, 496 

Total 1,108 16,133, 046 3, 871, 514 4,882,174 24, 488, 734 

TABLE 1 0.-Tax items appealed o the United States Board of Tax Appeals, fiscal 

year ended June SO, 1940 

Items Tax Penalty Total 

1917 

'' .3"4 n7" g 4i iI rA^I 

$3, 210 $260 $3, 470 

1918 351, 999 1,264 353,283 

1919 73,621 304 73,925 

1920 23, 297 4, 247 27, 544 

1921 38, 097 10,197 46, 294 

1922 148, 774 44, 251 193, 025 

1923 21, 697 1, 305 23, 002 

1924 11,208 2, 461 13, 687 

1925 

1926 

66,056 

64, 925 

23,827 

4L 096 

89,883 

108, 021 

1927 82L 888 60, 091 381, 927 

1928 481,551 192,056 673,807 

1929 2, 313, 764 377, 417 2, 691, 181 

1930 433, 218 65,909 499,122 

1931 173, 730 34, 593 288, 323 

1932 398,525 35,310 431,835 

1933 1, 380, 061 362,181 1, 742, 242 

1034 8, 751, 382 684,856 9,436, 238 

1935 10, 433, 808 538, 639 10,972, 447 

1936 24, 866, 121 1, 517, 116 a 383,237 

1937 17, 378, 752 861,498 18, OM, 250 

1938 1, 622, 840 224, 661 1,847, 301 

1939 45, 687 45,887 

1940 70,840 70,840 

Total 5, 386 69, 970,847 4, 883, 484 74, 854, 331 
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112 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

OF a aT w 

Cigarsweighingmore than 3 poundsperthousand 

Removed 3 

Perso nal 

1 413 - 441 r PI consumption Forex- portation 

a.: 

A 

1, 350 

II, 991,921 

2, 1 72, 937 

1 0, 475 

9, 946, 069 

800 

34, 386, 066 

139, 572 

1, 028,080 

153, 085 

3,295, 894 

35,4 15 

182, 755 278, 330 

2, 964, 1 24 

53, 790 

356, 148 

2, 368, 536 4, 358, 189 

188, 43 1 

184, 981 

447, 698 

650 

25, 645 

150 

463, 617 

1, 283, 806 

36, 784, 371 

4, 228,134 4.217,694 

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Jan.1, 

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8, 168, 997 8, 687, 402 

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2,

762, 865 

597, 51 0 

2,954,514 

, 11, 850 ' 67,432, 947 

13,785, 211 

6,632,708 

1,540,343 

16, 033, 799 

6,336,058 

182, 6 15 

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64,250 

44,336, 707 

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a .„ 

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REPORT OF COMMISSIONE

114 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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a 

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f,%1 g et 

Egg 

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1

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cat 

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First California Florida First New Jersey Fifth New Jersey Second New York 

Third New York North Carolina Eighteenth Ohio Oregon 
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118 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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§ 

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1 
TABLE 19.-Leaf tobacco used in manufacturing cigars, cigarettes, and tobacco and 

snuff, calendar years 1930 to 1939 l 

Year 

Cigars Cigarettes 

Tobacco and 

snuff Total 

Large 2 Small Large Small 

Pounds Pounds Pounds Pounds Pounds Pounds 1930 136,749, 916 1, 151,057 65, 333 347, 849, 955 293,990, 441 779,806, 202 1931 126, 611, 200 1,016, 997 93,171 329,919, 304 294,812,985 752,403,657 1932 103, 233, 757 1,059, 270 18,347 299, 010, 92,5 286,816, 510 690,133, 809 1933 103,953,997 745,245 17, 325 326, 076, 032 279,875, 778 710, 668,377 1934 110, 203, 242 919,672 882,144374,599,769 374,500 289,024, 051 775, 529,878 1935 113; 066, 319 675,899 14, 050 399, 944, 333 262, 731, 965 775,932, 061 1936 125, 875, 214 702,567 12,479 453, 314, 812 267, 461, 957 897,367,024 1937 127, 879, 843 773, 417 18, 699 479,942,665 269, 309, 344 872, 923, 968 1938 118,161,858 589, 451 14,151 483,826, 114 262, 710, 323 865, 302, 097 1939 122,071,819 609,278 24,983 509,107, 672 253, 485,449 885, 299, 201 

I The quantities given are unstemmed equivalent of all kinds of tobacco used. Stemmed leaf and scraps 

etc., used in manufacturing have been converted to un temmed equivalent at the ratio of 3 pounds stemmep 

etc., to 4 pounds unstemmed. 

2 Does not include tobacco used in bonded manufacturing warehouses. 

TABLE 20.

-Production of manufactured tobacco, snuff, cigars, and cigarettes, 

calendar years 1930 to 1939 

TOBACCO AND SNUFF 

Year Plug Twist Fine cut Soren chewing Smoking Snuff Total 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

1930 86, 273, 517 7, 623, 716 5,089,410 ('1 1 232, 013, 383 40, 765, 883 371, 765, 999 1931 76, 652,810 6, 377, 436 4, 170, 275 61, 235, 195 182, 947, 238 39, 854, 345 371, 237, 299 1932 61,945, 173 4,918,034 3,359,471 50, 080, 201 190, 986, 528 35,994, 337 347, 278, 744 1933 61, 361, 495 5,041,990 3,120,427 44, 724, 472 191,766, 382 36,098, 394 342, 113, 160 1934 62, 759,957 5,079,904 2,970, 421 44, 786, 387 193,075,426 36, 893,903 345, 565, 998 1935 60, 568,460 5, 604, 226 4,683,060 49, 006, 896 191, 750,069 36,095,140 342.727, 851 1936 59, 164, 521 6,372,164 5, 068, 192 45. 342,496 199,006, 958 38,022, 225 347,976, 506 1937 58, 330, 801 6, 774, 192 4,999, 260 45, 559,414 187, 774, 329 37, 191, 208 340, 579, 204 1938 59 999,646 5,658,854 4, 572, 346 42, 775, 966 200. 693, 591 37, 173, 135 345, 368, 538 1939 51, 262, 796 5.732, 777 4, 701,102 41, 350, 992 202, 289,113 37,969. 933 343, 306, 713 

Included under "Smoking" prior to 1931. 

CIGARS AND CIGARETTES 

Cigars Cigarettes 

Weighing 

more than 3 

pounds per 

thousand 

Number 

5, 893,890,418 

5,347. 921, 293 

4, 382, 722,918 

9, 300,044, 810 

4. 5E5, 780, 084 

4, 685, 309,674 

5,172,278,612 

5, 303,368, 834 

5, 014, 757,804 

5, 197, 627,088 

Weighing 

not more 

than 3 

pounds per 

thousand 

Nunzber 

383,069,980 

338,996, 780 

278, 748, 580 

209, 519,620 

221,976, 561 

177,822, 178 

180, 005, 714 

198, Rel, 972 

152,989, 705 

156,939,932 

Weighing 

more than 3 

pounds per 

thousand 

Number 

7,366,925 

5,159,660 

3, 373, 577 

2,845, 705 

88, 202,405 

2, 504,490 

2,457,940 

3, 066,460 

2,637, 530 

4, 388, 790 

Weighing not 

more than 3 

pounds per 

thousand 

Number 

123, 802,186, 217 

117,061, 214,494 

106,632, 433.834 

114,874, 217,470 

129,976, 333, 581 

139.966, 179,916 

158,893,958, 304 

169,969, 319,880 

171,686, 382. 671 

180,666, 824, 480 

1930 

1231 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

Year 

Nom-Compiled from statements of accounts prepared from manufacturers' inventories and monthly returns Hied under the United States internal-revenue laws. For cigars produced in and removed for domestic consumption from bonded manufacturing warehouses, see table 15. 

es,5.72 po unds. 

a 

8 7 

8 

"ri 

7 Num.—Thenumberof factories in bu 

120 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 121 

° cht li 5g 

> '6; 

a 9° SI 

lic4 

2 in i 2493 ,12 4 F15 :44ggg 

ef ri 

17, 021. 09 19,230. 77 

89'605 '5 

EZ '008 

EP'398'31 

04'93 

Cigarettesweighingmorethan 3 poundsper thousand 

Removed 

Tax-paid 

during 1939 

-7 

2,364,040 

2,670, 940 

006'906 

Number 

750 

I 1,785_ 060 

111,150 

Forexportation 

S 

5 

§ 

,-,- 

§ § § 

005 '66 000'9E9'1 cos '961, 

005 '8 

tounN 

A'' 

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ri §§ 

052 '65 006'899 me 'so 

NE COLLECTION DISTRICT 

Num ber 

224, 450 

900 

'1 t- ....: 

ri l 

 0. 

., 

t 

- 

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., 

§ 

59, 550 

132,460 

016 4 31 

Num ber 

58. 400 

1, 000 

6 

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ti 

12§§§FiR§FICH 

.- . 4,368.790 2, 637,530 

093'TEL'I 

090 III 019 '1,961 Oil 

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posn °annoy 

& 

4" 

i 

13. 

t;, m ,. 

810 '3 EZI'3 901 

INC MORE THAN 0 

999 986 

epunoci 

ti 

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a 

909 t

I69 

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916 

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4. 

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ZLI •6 

TOTALS FOR STATES COMPRIE 

STATE Pounds 

California 1 New York 7, 137 Pennsylvania 197 

DISTRICT 

First California Sixth California Kentucky Massachuse tts Filth New Jersey Second New York Third New York North Carolina 

First Pennsylvania 

Twelfth Pennsylvania Virginia 

Total,1939 Total, 1938 Increase Decrease 
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00 

REPORT OF COMMISSIONER OF INTERNAL 

4

FUME 

:Man 

REVENUE 

e4' 

122 

0. ag 4 

4 

eor4 gkga 

e0sexEag 

No 

a 

to 

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to 

E. 

0 

00 

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aad Output of tobacco(pounds) 

U 

a 

a 

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22 1W 1 5 

I 

to 

S 

C. 

2 

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to 

a 

a 

a 

14

AA

1A

REPORT OF COMMISSIONE

Output oftobacco (pounds) 
8F4A$8P4-'26P-re- ; 

▪ 1 

O 4,, Nu

mberof manufacturers 

Output of cigars 

A 5 cri+7+7TiT 

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Q.; 

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CO 

0) 

UMAN'S" 

%VI -1'1+71 +1+S , 

z 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 125 

124 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 22.-Exportation in bond of manufactured tobacco, snuff, cigars, and cigarettes, 

etc., year ended June 80, 1940, by collection districts 

TOBACCO AND SNUFF 

District 

Unaccounted 

for July 1, 

1939 

Removed for 

exportation 

during year 

Exported 

Tax-paid 

or returned 

to factory 

Unaccounted 

for July 1, 

1940 

Pounds Pounds Pounds Pounds Pounds 

First California 1, 270 1, 270 

Delaware 2, 400 2, 400 

First Illinois__ „.. __________ -_ -- 356 11, 054 9,227 396 1, 787 

Kentucky 88, 332 1,063, 918 976, 694 168 175, 388 

Massachusetts 527 497 30 

First Missouri 65,374 964,423 847,151 182,646 

Fifth New Jersey 24 384 408 

First New York 58 58 

Second New York 145 145 

Third New York 4, 408 3, 831 577 

North Carolina 1, 031 217, 170 217, 317 360 624 

First Ohio 737 8, 819 8, 970 586 

First Pennsylvania 2,333 2,333 

Twelfth Pennsylvania 154 1,693 1,847 

Tennessee 338 2,373 2,114 597 

Virginia 143, 519 1, 035, 933 1, 694, 797 1,817 82,838 

West Virginia 78 1, 125 1, 110 93 

Total 299, 943 3, 918, 033 3, 770, 169 2, 741 445, 066 

PERIQUE TOBACCO, SCRAPS, CUTTINGS, CLIPPINGS, SIFTINGS, ETC. 

Pounds Pounds Pounds Pounds Pounds 

Florida 225 225 

Louisiana 75,052 74, 736 316 

Fifth New Jersey 34,635 34, 635 

Second New York 43, 869 38, 511 5, 358 

Third New York 117,925 117, 925 

Tenth Ohio 5, 942 17, 192 23,134 

First Pennsylvania 81, 178 77, 060 4, 118 

Total 5, 942 370, 075 366, 226 4,118 5, 674 

CIGARS WEIGHING MORE THAN 3 POUNDS PER 1,000 

Number Number Number Number Number 

First California 3,600 3,600 7,200 

Sixth California 8,200 8, 200 

Florida 93,200 1, 193, 710 1, 235, 080 25,000 26,250 

Maryland 6,000 6.000 

Massachusetts 11,301 11, 300 

First New Jersey 7,701 125,050 126, 050 6,701 

Fifth New Jersey 58, 600 771, 956 787, 056 1, 000 42, 5W 

Third New York 3, 500 1, COO 2, 500 

Fourteenth New York _____________ 41, 000 41, 000 

North Carolina 10,000 10,000 

Tenth Ohio 2, 000 132, 850 123, 100 H, 750 

First Pennsylvania 36,000 661,500 612,300 200 85,000 

Twelfth Pennsylvania 11,400 68,125 79, 525 

Twenty-third Pennsylvania__ 10,000 15,000 20,000 5,000 

South Carolina 17,000 416,200 405, 200 28, 000 

Virginia 2,000 41,000 43,000 

Total 241, 500 3, 508, 991 3, 516, 591 26, 200 207, 700 

CIGARS WEIGHING NOT MORE THAN 3 POUNDS PER 1,000 

Number Number Number Number Number 

Florida 500 1, 120 1, 620 

Virginia 5,001 5,OW 

Total 500 6,120 6, 620 
10, 332,400 

40,021 

4, 250 

904,924, 740 

126 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 22.-

Exportation in bond of manufactured obacco, snuff, cigars, and cigarettes, 

etc., year ended June 30, 1940, by collection districts-Continued 

CIGARETTES WEIGHING MORE THAN 8 POUNDS PER 1,000 

District 

Unaccounted 

for July 1, 

1939 

Removed for 

exportation 

during year 

Exported 

Tax-paid 

or returned 

to factory 

Unaccounted 

for July 1, 

1940 

Kentucky 

Second New York 

North Carolina 

Virginia 

Total 

Number Number 

1,931,000 

3,800 

33, 200 

185,000 

Number 

1,931,000 

3,300 

33, 200 

185,000 

Number Number 

500 

2,163,000 2,152, 500 500 

CIGARETTES WEIGHING NOT MORE THAN 3 POUNDS PER 1,000 

Number Number Number Number Number 

First California 9,650,000 225, 870,000 225, 820,000 4,110,000 5, 590, 000 

Florida 848,366 748,366 100,000 

Kentucky 19,968,000 371, 156, 540 350, 144, 140 360,800 40,619,600 

First Missouri 7,361,700 7, 361, 700 

Fifth New Jersey 2, 345, 200 80, 062, 500 77, 700,100 200 4,677, KO 

First New York 

Second New York 10, 000 

415,000 

900,750 

185,000 

234,100 

230,000 

790,000 

North Carolina 27, 939, 900 1, 785, 764,700 1, 790, 234, 140 4,038,440 14,180, 520 

First Pennsylvania 8, 280, 000 71, 754,700 70,874, 700 4,980,000 4, 180, 000 

Twelfth Pennsylvania 1, 7,150 1,624, 200 90, 000 

Virginia 271,668,660 5, 488, 700, 150 5,364,302, 410 2,003, 540 391,962,800 

Total 339, 761, 700 8, 032, 319,106 7, 899, 115, 506 15, 492, 980 467, 472, 320 

CIGARETTE PAPER BOOKS 

Number Number Number Number Number 

Kentucky 2,900 2, 900 

Second New York 5, 400 6,400 

North Carolina 199, 680 199, 680 

Total 207,980 207,980 

TABLE 23.-Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes from 

factory in bond, for shipment or delivery as sea stores, fiscal year ended June 30, 

1940 

Delivered to 

sea stores 

warehouses 

Tobacco and snuff pounds.. 

Large cigars number 

Small cigarettes 

Class of product 

Delivered to vessels 

Tax-paid or 

returned to 

factory 

Unaccounted for July 

1, 1940 In foreign 

trade 

ln intereo

i

a

n

stal

rtrade 

United States 

Government 

Tobacco and snuff pounds 

Large cigars number 

Small cigarettes do 

1,192 

27,499, 550 

2, 500 

78 

5,950,000 

888 

80, 553,000 

48 

286,790 

619 

6,216,000 

REPORT OF COMMISSIOrNER OF INTERNAL REVENUE 127 

TABLE 24.-Withdrawal of manufactured tobacco, snuff, cigars, and cigarettes from 

bonded internal revenue tobacco sea stores warehouses,' for shipment or delivery 

as sea stores, fiscal year ended June 30, 1940 

Class of product 

Tobacco and snuff pounds_ 

Large cigars number 

Small cigarettes 

Class of product 

Tax-paid or 

returned to 

Unaccounted 

for July 1, 

Delivered to vessels 

In foreign 

trade 

In intercoastal trade United States 

Government 

factory 1940 

Tobacco and snuff pounds__ 34, 092 2, 600 3,199 274 363 

Large cigars number__ 4,060 250 

Small cigarettes do_ _ _ 463, 715, 555 79, 254, 225 344, 108, 035 11,616,200 16, 563,125 

There are now 16 such warehouses in operation. 

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

cigarettes exported, year ended June 30, 1940, by ports, and comparative totals for 

the years ended June 30, 1935, to June 30, 1939 

Exported from port of- Claims Tobacco 

and snuff 

Cigars Cigarettes Drawback 

allowed Large Small Large Small 

Number Pounds Number Number Number Number 

Newport News 1 241, 243 $716.44 

Norfolk 5 5,881 17, 900 8, 450 550,550 2, 784. 63 

San Francisco 11 1,539 13,825 3 ®. 70 

Total, 1940 

1b. r.Mc- g3S 1 I ^ 

7,420 13, 825 17,900 8,450 791, 793 3, 823. 77 

Total, 1939 5, 926 10, 500 10,100 4, BOO 550, 948 2,781. 27 

Total, 1938 10, 684 35, 000 21, 330 9, 880 1, 528, 511 6, 694.29 

Total, 1937 8, 086 106,425 14,400 7,700 7, 227, 518 23, 521.30 

Total, 1936 8, 451 74, 000 16, 600 16, 900 7, 587, 964 24, 648. 74 

Total, 1935 10, 324 138, 200 22, 936 19,100 8, 325, 104 21, 418. 00 

TABLE 26.-Domestic and imported cigarette papers and tubes withdrawn and 

internal revenue receipts from taxes during the fiscal years ended June 30, 1931, 

to June 30, 1940, inclusive 

Fiscal year 

Cigarette papers 

Tax-free packages, books, or sets Tax-paid packages, books, or sets 

Domestic Imported Total Domestic Imported Total 

Number Number Number Number Number Number 

1931 112, 462, 099 99, 030, 432 211,492, 481 1, 695, 537 122,697, 578 124, 393,115 

1932 1, 018,676,818 242, 599, 233 1, 261, 276, 051 8,007.828 119, 845,072 127, 652, 898 

1933 1, 458,996, 429 457, 074, 983 1, 915, 570, 912 9. 819, 889 57,894, 783 67, 714,672 

1934 1,930, 133,447 536, 625, 666 2, 469, 759, 1)3 9, 729, 959 59, 141, 230 68,871,189 

1935 2,684, 928, 917 2,482, 499 2, 687, 409, 416 11, 693, 440 59, 448,100 71, 141, 440 

1936 2, KO, 219, 326 1, 333. 333 2, 861, 552,659 69,797, 387 21, 622, 890 91, 420, 277 

1937 2, 713, 554, 987 800, 000 2, 712,354, 987 61, 571, 548 17, 797,240 79, 388, 788 

1938 1. 952, 699,101 500, 000 1, 953, 199, 101 76, 475, 882 7,221. 550 83, 697, 932 

1939 2,160, 3434, 855 I, 040, 000 2,161, 404, 855 100, 248, 660 5,798,065 106, 048, 725 

1940 2, 276, 827,218 400,000 2, 277, 227, 218 84, 746,166 3,180, 970 87,927, 136 

Claes of product 

Unaccounted 

for July 1, 

1939 

Withdrawn 

from factory 

during year 

15, 477, 500 

Unaccount 

ed for July 

1, 1939 

Withdrawn 

from warehouses during 

year 

128 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 129 

TABLE 26.-Domestic and imported cigarette papers and tubes withdrawn and 

internal revenue receipts from taxes during the fiscal years ended June 30, 1981, 

to June 30, 1940, inclusive-Continued 

Fiscal year 

Cigarette papers-Continued 

Receipts Tax-free 

Domestic Imported Total Domestic Imported Total 

1931 - - - - - - - - - - - - - -

1932 - - - - - - - - - - - - - -

1933 - - 

1934 - - - - - - - - - - - - - -

1935 - - - - - - - - - - - - - -

1936 - - - - - - - - - - - - - -

1937 - - - - - - - - - - - -

1938 - - - - - - - - - - - - - -

1939 - - - - - - - - - - - - - -

1940 - - - - - - - - - - - - - 

$16, 955.37 

85, 332.63 

134, 050.20 

134, 864. 73 

162, 116. 24 

982, 625. 68 

877, 204. 09 

1, 070. 406. 53 

1, 403, 092. 03 

1, 212, 121. 90 

$1, 421, 044. 60 

1, 559, 909.32 

784, 502. 64 

822. 829. 85 

801, 641. 92 

286, 325.30 

225, 910. 50 

100, 196.45 

74, 839.73 

40, 130. 50 

$1, 437, 999.97 

1,045, 241.95 

918, 552.84 

957, 694.58 

963, 758. 16 

1, 268. 950. 98 

1, 103, 114. 59 

1, 170, 602. 98 

1, 477, 931. 76 

1, 252, 252.40 

Nuniber 

18,495, 700 

19,449, 400 

39, 416, 050 - - - - - - 

13, 865, 050 - - - - - - 

20,893, 300 - - - - - - 

23, 251, 430 - - - - - - 

26, 170, 100 - - - - - - 

19. 172, 450 - - - - - - 

20, 429, 660 - - - - - - 

8, 324, 350 - - - - - - 

Number 

70, 000 

20, 000 

Number 

39, 416, 050 

13, 865, 050 

20, 893, 300 

23, 251, 430 

26, 170, 100 

19,172, 450 

20,429, 660 

18, 565, 700 

19, 469, 400 

8, 324, 350 

Cigarette tubes 

Fiscal year Tax-paid Receipts 

Domestic Imported Total Domestic Imported Total 

Number Number Number 

1931 - - - - - - - - - - - - - 18, 047, 700 972, 998 19, 020, 698 $3, 631. 84 $194. 60 $3, 526.44 

1932 - - - - - - - - - - - - - 135, 980, 500 140, 596, 150 276, 578, 650 27, 141. 67 28, 119. 23 55, 260. 90 

1933 - - - - - - - - - - - - - 25, 896, 200 171, 702, 500 197, 598, 700 5, 252. 00 34, 340. 50 39, 592. 50 

1934 - - - - - - - - - - - - - 21, 214, 900 56, 048. 000 77, 262, 900 4, 150.00 11, 209. 60 15, 359. 60 

1935 - - - - - - - - - - - - - 24, 827, 000 36, 613, 000 61, 440, 000 4, 987.40 7, 322.60 12, 310. 00 

1936 - - - - - - - - - - - - - 64, 047, 900 814, 300 64, 662, 200 12, 950.00 122.86 13, 072.86 

1937 - - - - - - - - - - - - - 65, 360.100 150, 000 65, 510, 100 13, 232. 40 30.00 13, 262.40 

1938 - - - - - - - - - - - - - 58, 179, 100 180, 000 58, 359, 100 11, 900. 00 36.00 11, 936.00 

1939 - - - - - - - - - - - - - 75, 882, 700 526, 800 76, 409, 500 15, 748. 68 105. 36 15, 854.04 

1940 - - - - - - - - - - - - - 137, 144, 300 342, 500 137, 486, 800 27, 187. 00 68.50 27, 255. 50 

TABLE 27.-Tobacco products withdrawn for consumption, computed from collections from the sales of stamps, fiscal year 1940 

Large cigars 

lAMMIWM1011 

Class A Class B Class C Class D Class E Total 

Number Number Number Number Number Number 

Domestic manufacture - - - - - 4, 703, 290, 871 41, 140, 910 430, 357, 012 21, 337, 211 461, 341 5,190,587,345 

Bonded manufacturing warehouseS 1 

 - - 21, 597, 676- 1, 016, 177 55, 474, 476 13, 953, 914 1, 334, 745 93, 376, 988 

Imported-Cuba - - - - - - - - - - - - - 1, 515- - - -4, 100 417, 617 536, 516 2, 639, 254 3, 599, 002 

Imported-Other countries_ __. 16,893 9,680 18,685 2,551 8.230 56, 039 

Total - - - - - - - - - - - - - 4, 724, 906, 955 42, 170, 867 - - - 486, 267, 790 35, 830, 192 4, 443, 570 5,293,619,374 

Philippine manufacture - -218, 417, 160- - 115, 261 321, 466 253, 696 135, 691 219, 243, 274 

Puerto Rican manufacture - - - - 986, 400- - 256, 850 482, 750 2, 200 - - 1, 728, 200 

Total - - - - - - - - - - - - - 4, 944, 310, 515 42, 542, 978- - - 487, 072, 006 36. 086, 088 4, 579, 261 5,514, 590,848 

cigars 

Small Large - - Small ciga- and Classification ciga- Snuff tobacco rettes smoking rettes tobacco and snuff 

Chewing Total 

Number Number Number Pounds Pounds Pounds 

Domestic manufacture - -130, 204, 817- 2, 188, 819 177, 676, 713, 193 301, 968, 797 37, 750.054 339, 718, 851 

Imported-Cuba - - - - - - 4, 700- - - -5, 806 751, 399 5, 767 209 5, 976 

Imported-Other countries - - - - - 38, 200- - 138, 591 2, 089, 391 97, 636 19. 495 117, 131 

Total 130, 247, 717 2, 333, 210 177, 679, 553, 983 302, 072, 200 37, 769, 758 339, 841, 958 

Philippine manufacture - - - - - - - - - - - - - 3, 175 785, 490 54 - - - - - - - 54 

Puerto Rican manufacture - - - - - - - - - - - 221, 800 4, 118, 780 - - - - - - 

Total . 130, 247, 717 2, 558. 185 177, 684, 458, 253 302, 072, 254 37, 769, 7581 339, 842.012 

g 

CO' 0- r: 0 C.- oo 

., .., , .. ,... .. .,,.. ., .. 

1.6 , , CO gg g',=,',-fgg g414 'ig ggargs.1 'd -,-- u, g - ...., _..... .... ..- -. . „.... 

N CO . .0 .n. ea- g 4 CO 

-. 8i a1,6 W..,,75g i-2 ga,Sac71ag, 

.,,.

i--'11., 

. M• . . . 

ee Cti NCD 

Leaf tobacco received from fume] 

44 OS 83Z I-; 3 E .. 

§ 

0 4 q e4g4 g '4'F11 o0

E 

.. .. i E E g 

wa 2 t -; 

El.' 5, 

E5g'' , 

a. t •a; M- CV oo 

.-ARF, i 

qa. . m 

.4 aS, "4 .V '''"" mn 6n f4q2 42 222228 2 2 F2 R 

.- 8e. - r OM 4.4. tC,40 Co .N. OCA qv. N .4 t3 

A; %,-- % cg, R gR .-2, g gsle RR -1,-.37,1 R .3: 5,- 0 

gg g 

Leaf tobacco exported by dealers 

11340,1, 

w 

5> te -r R 

is .tea a ., 2 U .., 

. 

6° 5a8 8 F1 .. ... .. . 

41 a.-. 0, C•S C- CO 0 05 2% cg 0.0 t,. 

..t. -r-7. CO aR a 

m -... 

= 

. R CO 

.• r-.:-..,5. g 

a . . , 

CO F-1 CO 

e„ 

,- . 

CO . 

' . CO CO co 

g' ,7"; otr a ,4 g 

oo .o . 

.:• g 

g O 

4 CO. 

, 

a . CO . . 

.M. N 

cn 2'4 co ., . ,-, o 

.8' 

. . .. . .. M . 

N N M 

.-7 

Stemmed 

43 "c3;:i 8 Ec6 . 0 

. 

coo r... m ..a., s -a. . 

m M N V c % CD M 

r... ,:t. HI i 

.m ,. 

Unstesnmed 

. NM Ca CV 

.0 -51;32 8 ,e. 28 onMM. , N MN cAM 

. 

. Ci E 

... 

„, - e4 

. a 

imm.,T.Rg - 

. . 

,,11 . 214 ..,4,,,.g2m..p.m..g...4,38,2c1 

,...,©-.m.., , ,.....,;vo...tg. ..R.-.0.t3 

1 c.,R ,,,. 

Opened 

to..,..m..,m,....,,......--..N.004g.g. 

--' NC) M . 0 . . 

._._ F 

CO 

bp,...1,.MWW.,008C-N..,OCO.COM ,3.02gNMO. 06,2N§ 

$ = . .N1 .. CAM . . 

• 

p• ::, bb" -.-= en „,-^ 

r.. 

000 

4 Z`,§. Iii 4o.'3, 

4 m t - 

 

,.., , z,,., .00 g.o.o0 

73.1-4 .1) ,, 18' •Q ' °Z V740-fj .0 .:4C.j"' C.) 0"V ..,.., ., ...,,,ri ■110S ZZ,0 l'ei.-;410, ,0 SE," 

Vf? 0 .4 4.-r,-5 -,60-t-Aeeto.t-,,,00.4.63 ....,t -5„.0 

-1=',4iou w.E.14-433334, 11c&-4■FFZ4,E-..104+FFP4mFT.,.. 

; : 

-] .6 0 

',5 1$ 

-0: 44 .24 0.. 

R§ we,9 04,5,4t8.1 

m ti,.., .55. 

''' of q 

,.1:-..,-.,>0 0 Et ...-.. .04-...,: 

'0 

O 

0 

0 • .6 , 

C O 

0 

BC 

oC 

BC

• 

5- 

0 

BC 

O 

CO O 

o 

0 74 

Cf 

.0 0

) 0 40 

B. 

,.0 

I 

C • e. 

C 

• c. 

0.1 

C 

• e. 

0. 

00 

CV 
3 

00 

Ag 

A 

a 

a 

a 

E-r 

0 

a 

o 

0 

.g 

aZ 

-40 

P4 

4 g 

g 

Z 

A 

Z 

A 

0 

aA 0 U U 

zFz o ■-■ 

AP 

a 

P 

g 

g 

W 

CF) 

o 0. 

a 

Pa 

2 

2 

0 

0 

a 

0 

0 

0 

g 5 

UN 

R 

September I October I November I December tl i

r S

9 

a 

a 

FWho 

1-7 

3 

a 

k 

Cag

tiny 

a 

ro 

ro 

Tt 

.7; 

a 

I 

g 

et, 

44.

vro 

o.N 

) 

ay 

O 

F 

F4 

eq 

I .

.0 

130 REPORT OF COMMISSIONER OF INTERNAL REVENUE Leaf tobaccoreceived from farmers by- 1 WW Pounds 3,325, 147 20, 992, 426 I,733,134,197 1,501, 481, 284 199 em ' J,DIIIISI 

EEERRE 

4 

P EERE 

-gag 

riF- 

'2.9g

03 

i co pun t

708, 017 977, 517 

3 '69 009 

a 43 

oasis 

tJE 

L96 

41 9

r c apuno

I H ' TOE1 6L '

3 1/ ' ZLZ

1 

-- a 

EIRE 

g 

Dealers in 

leaf tobacco 

Pounds 

3, 325, 00 1 20,941,439 

I, 732,297, 157 1, 500, 349, 466 

231, 897, 691 

RREE 

g 

PEE 'ail§ 

c4gg 

Leaf tobaccoexported by dealers 

Total 

99 616'

.3 14190 74

382, 100, 200 475,627,081 

26 ' 949 ' 188

---- 

RE THAN ONE COLLECTION D 

g E g 

g .- 

S I stuo

,1 20 13149 11

31, 370, 427 13, 705, 022 

i 99 E T 90t

F 

R 

s w o sd

r cO SpUll

1,7 58,194 687, 625 

O L E 699

Stemmed 

d spuno

22, 695, 026 49, 090, 734 

'91 ER . .1 80

TOTALS FOR STATES COMPRISING MO1 

. 

4 @ E 2 

a , 

g 

- g g 

. 

1 8 - - 

A g , 

ll lso ra utt t pa

9 8 ' 616

g o sputt

326, 276, 553 412,143,709 

85,867, 147 

1:44ESF, 

Dealers in leaf tobacco 

Wg 

g 

Num ber 

10 

40 

921 

11 E 9

a 

t-cN44g 

0 

1 

o 

9 

EN itg l w

1 4 966

I 95' 9

OL9 

i°°"w" 

0 

a 

5 

9 

w movir

zsa 

1 943'

_ . 

0g,...., 

Tg 

0 p, 

It II 

w avo

08 E 6

'3 1 9E

__ __ 4 89

te4=c s 

 m---;1. - 

STATE 

California Illinois Missouri New York Ohio 

Pennsylvania 

DISTRICT 

West Virginia Wisconsin 

Total, 1939 

Total, 1938 

Increase 

Decrease 

REPORT OF COMMISSIONE

Scrap tobacco imported byTotal 8 

4„ 

NR 

-EA RRF08 5 

5' g 5 

^ 

6 

@E 

4 .m sn

l go goo °

0 

N.. 440 ,,:e EER 2 E 

; slam

ut min -og 10 ,e2

e 

4-

v 

, 

g 

ea 

- e - .1 

Stemmed leaf imported byTotal I 

rg 

.02 

1

ugl 

8 i .i gEG 

AAER 

Tobacco 

manufacturers 

0. 

i 

4 

Cigar 

manufacturers 

48 R 

5 c'r 

g .,- 

r 

RR 

g 

i 5AE

f^t0.

Dealers in 

leaf 

Ng.

4ER 

ef aAl 

R6i NA 

lJnetemmed leaf imported byot l pi

ar8 HE r-rqg gm Va 

a 

g

P

l sacra

t gmen -au

, ,/ io oawerC! 

42 d RR 

a 

R Eg 

u tr gra a( im in -m 10 209

.10§§in ri 1 Ei

Dealers in 

I leaf 

4FE RR@ 

V e eice 

E. E 

Les e; 

N 

. 

m 

E d

11 

o a 

QU i 

A4 

4P1 SiaAI

E 

gti 

ilataontg$E

17,g38Rge9Ow44,N
132 REPORT OF COMMISSIONER OF INTERNAL REVENUE Scrap tobacco imported by- Total Pounds 30, 413 12,553 19,557 

14, 500, 276 10, 059, 091 

9811441 

1CTION DISTRICT 

.,uS 

gWil " 

Tobacco 

manufacturers 

96Z 

guano,' 

11, 742, 769 

7, 359,440 

en 't 

g,_ 

- 

Tggi ,--- F5 

Cigar 

manufacturers 

Pounds 

30,413 

1 2,553 19, 262 

2,757,507 2, 699, 651 

928 'L2 

Stemmed lea ' imported by113101 

Pounds 

1, 319, 620 

31, 085 

69Z '988 '9L8L6'EggVI -rez 8 '

Pounds 

216,473 

53, 79 1 

66, 538 

919, 923 

8, 302,299 

913, 121 

4, 440, 892 

Tobacco 

manufacturers 

SplI710,1- 

IOCV9I 891 

918 '921 

Cigar 

manufacturers 

313 '

es9 

66 

spunoci 

4,584, 383 

3, 853, 341 

zroo le/ 

OR STATES COMPRISING MORE THAN ONE CO LL' 

Dealers in 

leaf 

sot 'LI9 

033 'T 

/1 xPv 00f 

13, 779, 437 

22,876,424 

Leis '960 '6 

Pounds 

213, 864 

39, 144 

136,643 

8, 087, 214 

901, 830 

2, 934, 128 

Unatemmed leaf imported byTotal 

Pounds 

58, 383 

16, 443, 389 

6, 830 

57, 163,241 55,561, 755 

981 ' 109' 1 

cgc.,„. 

4:P. ,40074.7“2 

IggIglaz: 

ti ic.i- ..: 

Tobacco 

manufacturers 

'9E

sPunocd 

800'38 18e36 94 1'01 

AUF.R 

i g ..: 

0. 

,R, 

Cigar 

manufacturers 

396'

2021 

996'8 

CBE '89 

epunew 

19,644,496 17,659, 824 

ZL9'486' 1 

fats

g,,,, 5.7.' arta' 

tz" 

g ,z

Dealers in 

leaf 

LZ2'9 963 'L 

spuen gs 

236'618'LE 

192 'Lg 

393, 362 

TOTALS FC 

-RE l a 

g 

n.ilE 

dre4gti 

,ded 

DISTRICT 

First Texas 

Virginia 

Wisconsin 

Total, 1939 Total, 1938 Increase Decrease 

STATE 

California 

Illinoig 

Missouri New Jersey New York Obio Pennsylvania 

REPORT OF CONMPERYNER OF IITIERNAL REVENUE 133 

TABLE 30.-Quasi tobacco manufacturers classified. Number of factories operated 

and tobacco material handled, calendar year 1939 

Class. 

Number 

in busi 

ness Jan. 

1, 1939 

On hand Jan. I, 1939 

Unstemmed 

Stemmed Scraps In process Stems Siftings 

1 

2 

3 . 4 

5 

6 

7 

8 

Total 

1 

2 

3 

4 

7 

Total 

1 

2 

a 

4 

5 

6 

7 

8 

Total 

1 

2 

3 

4 

6 

7 

Total 

Loss 

Gain 

62 

47 

17 

10 

18 

2 

43 

Pounds 

11, 137 

719, 294 

385, 523 

1, 608,197 

Pounds 

639 

24, 009 

614,831 

Pounds 

382, 776 

2, 419, 119 

156, 865 

91, 362 

928, 977 

236, 036 

203,151 

Pounds 

5, 305 

1, 129 

4, 652, 298 

6,590,018 

125 

Pounds 

22,932 

43,095 

2, 735, 722 

457, 705 

176 

Pounds 

89 

17, 673. 

72, 458. 

10, 300 

102, 808 

315 

210 2,724, 151 639, 479 4, 418, 286 11, 248, 875 3, 259, 630 203, 643 

Opened Received 

5 

1 

3 

1 

3 

26 

86, 913 

20, 312, 687 

6, 186, 052 

13, 19D, 851 

8, 223 

35, 459 

1, 289, 217 

171, 755 

5, 932 

18, 361 

488,565 

2 483, 291 

1, 930, 167 

7, 710, 526 

2, 939, 674 

1, 381, 994 

3, 321, 719 

3, 069, 809 

5, 788, 540 

17, 716 

231, 761 

5, 393 

4,382,321 

6, 026 

18, 475 

694, 945 

102, 858,321 

I, 804 

3, 485,102 

9, 189 

34, 589 

223,309 

10,383 

13, 297, 231 

39 39, 829,185 2, 457, 121 26,142, 429 4, 637,191 107, 064, 673 13, 574, 698 

Closed Removed 

8 

6 

2 

4 

72, 942 

531,661 

5 505, 686 

4 5,410,626 

92, 327 

4, 989 

1, 286, 678 

26, 596 

279 

3, 229 

5, 702 

171, 162 

5 723, 819 

5, 249, 013 

207,103 

1, 919, 828 

3, 660, 157 

3, 143, 493 

1, 790, 589 

3, 071, 919 

21, 293, 440 

252, 497 

177, 815 

5, 666 

14, 297, 917 

7, 526 

2, 877, 299 

49, 682 

1, 291, 929 

122, 519, 101 

300, 952 

28,895 

36,487 

746, 501 

3, 290 

48, 781 

420,662 

8, 688 

21 6, 608, 231 2, 217, 465 40, 285, 542 14,733,895 127, 046, 989 1, 293, 391 

Number 

in bust. 

ness Jan. 

1, 1940 

On hand Jan. 1940 

59 

44 

3 

17 

14 

9 

17 

65 

17, 270 

1, 407, 510 

245 

655,116 

2,120, 522 

424 

4,995 

605,627 

647, 833 

83, 552 

I, 330, 203 

333, 717 

551, 293 

200,171 

2, 499, 662 

5, 572 

2, 196. 931 

7, 269, 898 

27, 477 

19,944 

9, 046, 497 

463,545 

1, 980 

3,473 

163, 806 

15, 695 

607, 004 

91 

228 4, 230, 663 700, 996 5, 646, 431 9,472,401 4,559,493 790, 0604 

31, 744, 442 

15,371,258 

178, 139 

8,320,230 21, 281.629 

11,694,968' 

_____ • 

Description of classification Class 1, dea ers in impor ed scrap tobacco; class 2, dealers in domesticscrap' 

tobacco; class 3, dealers Its imported and domestic scrap tobacco; class 4, producers of scrap S ler tohaect. 

class 5, reclaiming scraps from stems; class 6, manufacturers of fertilizer, insecticide, nicotine, etc.;.classi7, 

storage, scraps, etc.; class 8, growers of, and dealers In, perique tobacco. 

2 Grown. 

Transferred to other registries. 

4 Used in production of nicotine, extract, and fertilizer. 

Exported. 

0 

sa 

0 

03 

0 

gt, 

.0 0 

'0 

g 

0 aV 

0 

eQ 

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3'0 

0 git .0 

r.0 

V 0 

g 

es es, 

g, 

na 

.gs 

cs 

04 

97 
REPORT OF COAINUSEDYNE

134 REPORT OE CONEAMSIONER OF INTERNAL REVENUE 

Tobaccomanufacturers 

Scraps,cut- tings,and 

clipping; 

4 

. DEFA F OAR f 

t N4o 

'2 p1-; g eeee e ..g. 4 ..c, a... - ts t s 

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a 

136 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 

Sluaau00 

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369 

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9 ' 981

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138 REPORT OF COMMIES NER OE INTERNAL REVENUE 

REPORT OF COMMISSIOrN

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140 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF COM M IS.mION

Ramp It Jo nquente lewd, 

ra- liE 4.6,$,,r eer_re 

,-e ... co -I, to 

TLE 'et on 

30,481 

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142 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

OLEOMARGARINE, RENOVATED BUTTER, MIXED FLOUR, ETC. 

TABLE 33.-Production and withdrawals of colored oleomargarine, year ended June 

80, 1940, by collection districts 

Districts 

On hand 

July 1, 

1939 

Produced 

Withdrawn 

Tax-paid 

Withdrawn 

for expor 

Withdrawn 

free of tax 

for use of 

United 

States 

Unite 

Lost or 

destroyed 

On hand 

June 30, 

""11 1940 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

Georgia 3, 035 24,176 9, 036 17, 932 243 

First Illinois 9,150 417,271 123,675 109,974 180, 845 108 11,819 

Indiana 342 2,532 2, 640 234 

Kansas . ___ .. ________________ 4,194 235,768 49, 100 4,031 182472 4,359 

Maryland 3, 730 399, 958 91, 727 271, 410 31, 770 24 8, 757 

First Missouri 30 128, 670 9,104 118,466 1, 130 

Sixth Missouri 32 587 619 

Fifth New Jersey 9, 479 213, 209 14, 712 118, 340 78,676 233 10,672 

First Ohio 303, 157 1, 536 38, 275 263, 346 

Tenth Ohio 108,649 107,459 1, 190 

South Carolina 25,754 22,880 2,974 

Second Texas 12 12 

Total 30, 009 1, 859, 731 302,149 649, 989 896, 387 666 41, 094 

TABLE 34,-Production and withdrawals of uncolored oleomargarine, year ended 

June 30, 1940, by collection districts 

District 

On hand 

July 1, 

1939 

Produced Withdrawn 

 tax-paid 

Withdrawn 

 for export 

Withdrawn 

free of tax 

Unit ed 

use of united 

 States 

free Lost or destroyed 

On hand 

June 30, 30 

1940 

Pounds Pounds Pounds Pounds Pounds Pounds Pounds 

Alabama 4, 023 397, 283 396, 274 5, 032 

First California 371, 659 26, 284, 918 26, 277, 376 3, 648 375,553 

Sixth California 274,564 12, 346, 335 12, 294, 035 326,884 

Georgia... ___________ 32,587 2, 913, 156 2, 925, 292 20,451 

First Illinois 1, 290, 593 89. 452, 733 89, 639, 391 330 6, 314 I, 102, 341 

Indiana 43 33, 150, 156 33, 110, 321 48,878 

Kansas 271, 417 20, 632, 382 20, 669, 877 384 233, 538 

Maryland 103,214 9, 926, 992 9, 382, 006 148,200 

Michigan 338, 312 16, 573,084 16, 294, 920 616,476 

Minnesota 18, 500 584,310 590,092 12, 718 

First Missouri ____ 49,400 6, 578, 978 6, 592, 326 36,052 

Sixth Missouri 33, 059 1, 878, 313 1, 884, 354 27, 018 

Fifth New Jersey------ 303,657 19, 161,020 19, 162, 535 1,500 300,642 

North Carolina 806 1,660 2,462 4 

First Ohio_. 297,162 23, 548, 793 23, 463, 898 382,057 

Tenth Ohio 86,082 8, 190, 668 8, 222, 820 53,930 

Eleventh Ohio 193,678 lg, 782, 672 18, 788,688 187,662 

Oregon 27,964 1, 923, 6M 1, 433, 046 18, 583 

South Carolina 453,920 436,148 17, 772 

Second Texas 198, 743 10, 067, 533 10, 038,686 2,826 224.764 

Total 3, 895, 463 301, 857, 570 301, 599, 496 I, 830 13, 176 4,138, 531 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 143 

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

year ended June 30, 1940, by months 

Month 

Colored 

Produced Withdrawn 

tax-paid 

Wit hdrawn 

for export 

Withdrawn 

free of tax 

for use of 

United 

States 

Lost or destroyed 

1939 Pounds Pounds Pounds Pounds Pounds 

July 103, 058 14,872 8,813 69,594 12 August no, 169 13, 584 14, 654 72,198 222 September 107, 675 20,484 24,824 77,608 108 October 151,744 31,591 29,600 96,967 November 191, 164 29, 248 22, 974 74,800 

December 149,601 24,699 57,095 78,396 

1940 

January 149,582 24,665 47, 964 68,294 February 168,789 29, 773 53, 206 85, 880 

March 137,958 29, 269 49, 819 59,282 

April 177,346 29, 955 68, 724 75,670 

May 180, 537 28,171 65, 911 75,900 June 282,108 21, 838 207, 905 61, 798 

Total 1, 859, 731 302,149 649,489 896,357 666 

Uncolored 

Month Withdrawn 

Produced Withdrawn Withdrawn free of tax Lost or detax-paid for export for use of

United stroyed 

States 

1939 Pounds Thunds Pounds Pounds Pounds July 19, 163, 145 20, 106, 556 30 837 August 21, 480, 739 21, 223, 058 

September 27, 999, 112 27, 902, 481 1,800 3,649 October 23,637, 566 23, 650, 902 

November 27, 760, 714 27, 205,172 

December 25, 435, 888 25, 716, 775 

1940 

January 29, 209, 438 29, 378, 643 

February 29, 313, 290 28, 946, 041 1,302 

March 26, 523, 191 26, SOO, 292 1, 653 

April 27, 233, 829 27, 551, 584 2,284 May 21, 522, 727 24, 122, 195 948 June 19, 597, 931 19, 405, 627 2, 503 

Total 301, 857, 570 301,599,496 1, 830 13, 176 
Colored Uncolored 

Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

free of 

tax for 

use of 

United 

States 

Withdrawn 

for export 

Withdrawn 

free of 

tax for 

use of 

United 

States 

Year 

Produced Produced Withdrawn 

tax-paid 

Pounds 

8, 846, 975 

4, 636, 218 

2, 813, 198 

2.689, 095 

2, 909. 971 

2, 773, 194 

1,967, 206 

1, 649, 356 

I, 380, 891 

1, 859, 731 

Total__ 31, 520, 835 

Pounds 

5, 793, 325 

2, 090, 578 

MO, 021 

462,599 

808,439 

527, 419 

673, 307 

624,362 

354, 991 

302,149 

2, 137, 181 

Pounds 

1.915, 501 

1, 666, 182 

1, 570, 811 

1, 594, 168 

1, 408, 827 

1, 471, 424 

583,610 

200,401 

155, 748 

649,489 

11, 246, 161 

Pounds 

1, 338, 469 

910, 749 

768, 714 

631, 665 

680, 921 

781, 292 

740, 960 

837,588 

867, 925 

896,387 

Pounds 

268, 926, 049 

210, 706,042 

216, 229, 634 

290, 497, 599 

350, 915, 555 

368, 964, 422 

387, 297, 043 

413, 754, 759 

331, 591,928 

301, 857, 570 

Pounds 

270, 394, 635 

210, 450,678 

215, 990, 086 

240, 410, 117 

350, 113, 863 

368, 986, 799 

386, 775, 872 

413, 560, 893 

331, 701, 894 

301, 599, 496 

3, 089, 984, 333 

Pounds 

5, 372 

15 

180 

240 

222 

330 

1931 

1932 

1933 

1934 

1935 

1936 

1937 

1938 

1939 

1940 

8, 454, 670 3, 090, 740, 601 

300 

1, 830 

8,489 

3, 000 

3, 000 

Pounds 

----- 

Pounds 

Oleo stearine Z 178,037 

Oleo stearine oil 88,000 

Oleo stock 1,018, 790 

Palm oil 9, 496 

Peanut oil 2,137, 756 

Salt 12, 769, 339 

Soda (benzoate of) 118, 916 

Soya bean oil 82, 331, 741 

Soya bean stearine 2,200 

Vegetable gum 1.762 

Vitamin concentrate 15, 638 

Total 316, 497, 875 

144 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 36.-Summary of production and withdrawals of oleomargarine (colored and 

uncolored), years ended June 30, 1931 to 1940 

TABLE 37.-Mate als used in the manufacture of oleomargarine (colored and 

uncolored), year ended June 30, 1940 

Pounds 

Babassu oil 11, 360, 570 

Beef fat 31, 600 

Butter 188 

Butter flavor 1 

Coconut oil 26, 270, 696 

Color 1,447 

Corn oil 533,339 

Cottonseed oil 102,056, 917 

Cottonseed stearine 13,365 

Derivative of glycerine 771, 679 

Lecithin 83, 223 

Milk 58, 622, 534 

Neutral lard 3,197,002 

Oleo oil 11, 889, 139 

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

1940, by collection districts 

• District 

On hand 

July 1, 

1939 

Pi oduced 

Withdrawn 

 tax-paid 

On hand 

June 30' 139 

Alabama 

Georzia 

Maryland 

Total 

Pounds 

7, 685 

16.460 

23,308 

Pounds 

1, 533, 336 

812,172 

361, 344 

Pounds 

1, 540, 836 

813, 547 

331,050 

Pounds 

185 

15.085 

4.102 

47,953 2, 706, 5.52 2, 735.433 19, 372 

TABLE 39.-Summa y of production and tax-paid w thdrawals of renovated butter, 

years ended June 30, 1931 to 1940 

Year Produced Withdrawn 

tax-paid Year Produced Withdrawn 

tax-paid 

Pounds Pounds Pounds Pounds 

1931 1, 499, 041 1, 507, 408 1937 2, 737, 181 2, 769, 853 

1932 1, 129, 299 1, 117, 784 1938 2, 435, 499 2, 331, 270 

1933 1,002, 131 1, 008, 327 1939 2, 906, 117 2, 925, 272 

1934 1, 219, 156 1, 205, 475 1940 2, 705, 852 2, 735, 433 

1935 1, 894, 561 1, 851, 245 

1936 2, 252, 920 2, 218, 951 Total 19, 727,767 19, 721, OIE 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 145 

TABLE 40.-Production and withdrawals of mixed flour, year ended June 30, 1940, 

by collection districts 

PRODUCED 

District Barrels Half 

barrels 

Quarter 

barrels 

Eighth 

barrels 

Total 

pounds 

Stock on hand July 1, 1939 

First California 

Iowa 

Minnesota 

Sixth Missouri 

Twenty-eighth New York 

Oregon 

Utah 

Washington 

Wisconsin 

Total 

Grand total 

15 2, 503 4, 625 3, 435 465, 338 

57 

393 

17,127 

40, 838 

2, 728 

35, 517 

16, 561 

20, 126 

BO 

89, 526 

140, 465 

36, 527 

28, 927 

4, 140 

47,122 

28, 642 

9, 722 

5, 414, 352 

1, 291, 314 

1, 621 978 

I, 978, 048 

9, 700, 457 

465, 365 

5, 063, 416 

22, 540 

450 133, 127 299, 585 85, 486 25, 468, 470 

465 135, 630 304, 210 88, 921 25, 933, 808 

WITHDRAWN TAX-PAID 

First California 

Iowa 

Minnesota 

Sixth Missouri 

Twenty-eighth New York 

Oregon 

Utah 

Washington 

Wisconsin 

Total 

Lost or destroyed 

Stock on hand June 30, 1940 

Grand total 

57 

408 

17, 222 

41, 165 

2, 584 

35, 269 

16, 443 

20, 102 

230 

91, 323 

136, 233 

34, 995 

28, 810 

4, 139 

47, 861 

27, 997 

10, 495 

5, 493, 018 

1, 196, 507 

1, 611, 414 

1, 975, 696 

9, 567, 735 

451, 934 

4, 978, 502 

22, 540 

965 133, 015 

2, 590 

25 

295, 450 

8, 760 

86, 353 

2, 568 

25, 297, 346 

1, 795 

639, 667 

465 135, 630 304, 210 88, 921 25, 933, 808 

TABLE 41.-Production, importa ion and wi hdrawals of p aying cards, by months, 

year ended June 30, 1940 

Month On h and

9July 1,193 Produced rte nj-d poI ° 

Withdrawn 

tax-paid 

Withdrawn 

for export 

Withdrawn 

free of 

tax for 

use of 

United 

States 

Lost 

or destrayed 

On hand 

June 30, 

1940 

1939 Packs Packs Packs Packs Packs Packs Packs Packs July 11, 858, 522 3, 016, 800 1, 744, 520 349, 066 116, 928 36 August 3, 534, 168 3, 101, 903 194, 048 432 346 September 3, 920,141 4,169, 095 400,110 1, 296 216 October 4, 714, 912 9, 630, 439 166, 625 2, 160 252 November 4,199, 514 3, 989, 816 214, 626 2, 160 288 December 3, 968, 639 4, 256, 560 317, 826 8, 784 288 

1940 

January 4, 326, 418 4, 048, 089 414, 711 1, 296 210 February 4, 494, 474 4, 491, 508 600, 392 14, 976 220 March 4, 439, 505 3, 642, 791 259, 039 2, 676 21 April 3, 832, 882 3, 016, 378 325, 191 42, 444 84 May 3, 659, 664 2, 488, 246 290, 630 1, 296 214 

June 7, 560, 813 7, 396, 434 14, 210 3, 216 142 

Total 11, 858, 522 51, 667, 930 46, 970, 809 3, 546, 474 197, 664 2, 317 12, 809,188 
Withdrawals 

Month Production 

Total Tax-paid 

July - - - - - - - - - - - - - - - - - - - - 17, 643, 960 15,910,094 I, 764, 837 

August - - - - - - - - - - - - - - - - - - 18, 539,035 18, 144, 438 I, 779, 901 

September - - - - - - - - - - - - - - - - 18, 104, 177 25,0 68,163 2, 186, 728 

October - - - - - - - - - - - - - - - - - - 20,962, 741 28, 531, 869 2 248,0 82 

November - - - - - - - - - - - - - - - - 21, 792, 563 25, 577, 618 2, 281, 924 

December - - - - - - - - - - - - - - - - - 22,080, 272 21, 550, 400 1, 729, 301 

January - - - - - - - - - - - - - - - - - - 20, 652, 489 20, 229, 551 1, 503, 883 

February - - - - - - - - - - - - - - - - - 20, 381, 278 16, 592, 132 1, 640, 303 

March - - - - - - - - - - - - - - - - - - - 20, 983, 159 19,014, 628 2,012, 136 

April - - - - - - - - - - - - - - - - - - - - 20, 217, 862 20,028, 927 2,035, 161 

May - - - - - - - - - - - - - - - - - - - - 20, 947, 639 19, 928, 998 1, 781, 556 

June - - - - - - - - - - - - - - - - - - - - 21, 422, 583 21, 243, 910 3, 380, 494 

Total - - - - - - - - - - - - - - - - 243, 727, 756 251, 820, 728 24, 344, 30 6 

Tax-free 

For denaturation 

13, 823, 100 

16,050, 101 

22, 314, 699 

26,000, 138 

22, 944, 215 

19, 524,501 

18, 386,0 57 

14, 696, 811 

16, 729, 801 

17, 610, 421 

17, 752,052 

17, 489, 808 

2 223, 321, 704 

322, 157 

314, 436 

566, 736 

283, 649 

351, 479 

296, 598 

339, 611 

255,018 

272, 691 

383, 345 

395, 390 

373, 608 

For other 

purposes 

4, 154, 718 

1 The unit of measurement is the proof gallon, a legal standard prescribed for tax purposes. (See secs. 

2800 and 2809, Internal Revenue Code, 1039.) The proof of spir is is twice the percent of the content, by 

volume, of ethyl alcohol. Spirits containing 50 percent ethyl alcohol by volume are, accordingly, 100 proof. 

A standard proof gallon is a wine gallon ,231 cubic inches) of 100 proof spirits. The number of proof gallons 

contained in a wine gallon of spirits of proof other than 100 is proportional to the alcoholic content. For 

example, 1 wine gallon of 190-proof alcohol is equivalent to 1.9 proof gallons. (The units described are 

based upon spirits at 60 degrees Fahrenheit, at which temperature ethyl alcohol has a specific gravity of 

.7939.) 

2 Includes 728,923 proof gallons transferred to denaturing plants by alcohol plants not having bonded 

warehouses. 

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

withdrawals, warehouse losses, and stocks remaining in bonded warehouses June 30, 

by States, fiscal year 1940 

[Quantities in proof gallons] 

State 

Number 

of plants 

operated' 

Number

of warehouses 

operated 

Production Withdrawals 

Warehouse 

losses 

Remaining 

in bonded 

warehouses 

June 30 

California - - - - - - - - - - - - - - -

00 Ci 00 V... in .14 CO CO er .01 CO r.■ 

5, 314, 335 5, 721, 586 13, 984 700, 585 

Colorado - - - - - - - - - - - - - - - 53, 264 310 4, 071 

Delaware - - - - - - - - - - - - - - - 10, 618 10, 618 - - - - - - -

District of Columbia - - - - - - - 471, 977 470, 459 - - - - - - 2, 445 

Hawaii - - - - - - - - - - - - - - - - - 239, 555 200, 730 Z 127 44, 000 

Idaho - - - - - - - - - - - - - - - - - - 15, 563 12, 141 - - - - - - -

Illinois - - - - - - - - - - - - - - - - - 9, 929, 666 14, 374, 382 36, 077 I, 455, 108 

Indiana - - - - - - - - - - - - - - - - 22, 085, 412 32, 825, 119 124, 774 5, 511, 604 

Kentucky - - - - - - - - - - - - - - -

9, 058 - - - - - - 4, 260 

Louisiana - - - - - - - - - - - - - - - 32, 758, 744 15, 958, 233 37, 892 2, 807, 124 

Maryland - - - - - 18, 035, 226 21, 050, 063 35, 261 931, 187 

Massachusetts - - - - - - - - - - - -

7-1 

6,555, 817 7,543, 834 17, 885 200, 278 

Michigan - - - - - - - - - - - - - - - 

361, 754 - - - - - - 7,959 

Missouri - - - - - - - - - - - - - - - - 575, 343 9 17, 601 

New Jersey - - - - - - - - - - - - - - 46, 533, 090 46, 108, 309 38, 688 3, 468, 285 

New York - - - - - - - - - - - - - - 441, 493 631, 247 6, 756 638. 578 

Ohio - - - - - - - - - - - - - - - - - - 1, 388, 346 1, 996, 512 3, 960 198, 087 

Oregon - - - - - - - - - - - - - - - - - 30, 868 - - - - - - 1, 650 

Pennsylvania - 53, 989, 684 58, 094, 884 105, 276 2, 935, 127 

Puerto Rico - - - - - - - - - - - - - 4, 142, 705 4, 150, 328 20, 527 996, 499 

Virginia - - - - - - - - - - - - - - - - 166, 636 166, 366 - - - - - - - - - - - - • 

West Virginia - - - - - - - - - - - - 41, 491, 675 41, 291, 770 52, 291 1, 867, 290 

Wisconsin 

Total 

177, 214 183, 860 477 5, 807 

37 65 243, 727, 758 2 251, 820, 728 4 496, 294 5 21, 798, 554 

I Number operated during any part of the year. 

2 One experimental plant in California and one in Delaware. 

Includes 728,923 proof gallons transferred to denaturing plants by alcohol plants not having bonded 

warehouses. 

In addition, 42,813 proof gallons lost in transit. 

5 Stocks in transit between bonded warehouses and quantities in receiving tanks of alcohol plants awaiting 

transfer to bonded warehouses not computed. 

146 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

ALCOHOL, DISTILLED SPIRITS, BEER, ETC. 

TABLE 42.-Ethyl alcohol: Production and withdrawals, by months, fiscal year 1940 

[Proof gallons 1] 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 147 

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

• 1940 

[Proof gallons] 

• State Total withdrawals 

Tax-paid 

withdraw- withd 

als 

Tax-free withdrawals 

Total For denaturation 

For hospital and 

scientific 

use 

For use 

of United 

States 

and subdivisions 

For 

export 

California - - - - - - - - 5, 721, 586 776, 987 4, 944, 599 4, 674,187 194, 825 75, 587 - - -

Colorado - - - - - - __ 53, 264 30, 926 22, 338 - - - 21, 632 706 - - -

Delaware - - - - - - - - 10, 618 - - 10, 618 10, 618 - - - - - - -

District of Columbia_ 470, 459 12, 320 458, 139 422, 860 32, 309 2, 970 - - -

Hawaii - - - - - - - - - 200, 730 - - 200, 730 200, 430 300 - - - 

Idaho - - - - - - - - - - 12, 141 - - 12, 141 12, 141 - - - - - - -

Illinois - - - - - - - - - - 14, 374, 382 6, 176, 300 8, 198, 082 7, 913, 223 283, 347 1, 512 - - -

Indiana - - - - - - - - - 32, 825,119 4, 182, 168 28, 642, 951 28, 497, 992 83, 961 60, 895 103 

Kentucky - - - - - - - 9, 058 2, 041 7, 017 - - - 7, 017 - - - 

Louisiana - - - - - - - - 15, 958, 233 797,108 15, 161, 125 14, 969, 988 112,396 78, 629 112 

Maryland - - - - - - - 21, 050, 063 696, 477 20, 353, 586 20, 089, 079 257, 315 7, 192 - - -

Massachusetts - - - - 7, 543, 834 1, 037, 481 6, 506, 353 6, 278, 500 150, 966 76, 887 - - -

Michigan - - - - - - - - 361, 754 270, 193 91, 561 - - - 91, 453 108 - - -

Missouri - - - - - - - - 575, 343 457, 833 117, 510 - - - 75, 462 42, 048 - - -

New Jersey- - - - - - - 46,108, 309 1, 865, 626 44, 242, 783 43, 693, 441 411, 729 91, 736 45, 877 

New York - - - - - - - 631, 247 - - 631, 247 631, 247 - - - - - - -

Ohio - - - - - - - - - - - 1, 996, 512 1, 821, 611 174, 901 22, 769 151, 902 230 - - -

Oregon - - - - - - - - - 30, 868 30, 868 - - - 

Pennsylvania - - - - - 58, 094, 884 6, 167, 099 51, 927, 785 51, 116, 831 133, 285 646, 059 31, 610 

Puerto Rico - - - - - - 4, 150, 328 - -

1 4, 150, 328 3, 330, 768 951 - - - 118, 582 

Virginia - - - - - - - - - 166,366 - - 166,386 166,366 - - - - - - 

West Virginia - - - - - 41, 291, 770 3, 283 41, 288, 487 41, 144, 945 3, 597 139, 945 - - -

Wisconsin - - - - - - - 183,860 16,085 167, 775 146, 319 21,456 - - - 

Total - - - - - - 251, 820, 728 24, 344, 306 1 227, 476, 422 2 223, 321, 704 2, 0y, 903 1, 224, 504 196, 284 

Percentage of total 

withdrawals - - - - 100.0 9. 7 90.3 88. 7 .8 .5 .1 

1 Including tax-free withdrawals of 659,931 proof gallons for beverage purposes, 39,164 proof ga Ions for 

medicinal use, and 932 proof gallons for industrial use. These amounts are not shown separately under 

tax-free withdrawals. 

2 See footnote 3, table 43. 

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

fiscal year 1940 

State Molasses 

Grain 

Other materials 

Corn Malt Other 

Gallons Pounds Pounds Pounds Gallons Pounds 

California - - - - - - - - - - - 7, 058,114 643, 030 75,376 5, 880 - - -

2 371, 823 

District of Columbia - - - 654, 477 - - - - - - - - 

Hawaii - - - - - - - -

2 3, 255, 920 - - - - - 

Idaho - - - - - - - - - - - - - - 4,502 36, 893 - - -

4 703, 010 

Illinois - - - - - - - - - - - - - 808, 119 90, 891, 279 6,533,316 2, 078. 312 - - -

Indiana - - - - - - - - - - - - - 18, 120, 144 2,007,488 526,120 0 14, 691, 900 - - - - - 

Louisiana - - - - - - - - - - - 37, 989, 916 - - - - - - - - -

Maryland - - - - - - - - - - - 20, 871, 065 - - - - - - - - 

Massachusetts - - - - - - - - 7, 856, 749 - - - - - - - - -

New Jersey - - - - - - - - - - 56, 171, 228 - - - - - - - - -

New York - - - - - - - - - - 444, 495 - - - - - - - - -

8

10, 379, 740 - - - - - 

Ohio - - - - - - - - - - - - - - 10, 218, 096 1, 360, 800 1,525,104 - - -

Pennsylvania - - - - - - - - 56, 622, 970 12,672,995 I, 208, 397 352,270 - - -

Puerto Rico - - - - - - - - - 5,673,458 - - - - - - - - 

Virginia - - - - - - - - -

7 10,124, 665 

West Virginia - - - - - - - - g 34, 513, 687 - - - - - 

Wisconsin - - - - - - - - - - 

Total 

450, 790 4, 270, 126. 5, 661, 498 - - - - - - - - - 1,205, 

12, 404, 

271 

194, 601, 378 136,815,670 16,851,377 10 4, 524, 579 62, 841, 247 769 

7 For those plants in which ethyl alcohol is a by-product of the butyl process, only the estimated amounts 

of materials allocable to ethyl alcohol have been included. Figures do not include materials used at experimental plants. 

2 Potato residue. 

5 Pineapple juice. 

Potatoes. 

5 Ethyl sulphate. 

6 Sulphite liquor. 

7 Cellulose pulp and chemical mixtures. 

31,093,950 gallons of ethyl sulphate and 3,419,737 gallons of crude alcohols mixture. 

g A corn sugar by-product. 

72 Includes 4,460,927 pounds of rye, 27,262 pounds of barley, 21,759 pounds of diamalt, 14,194 pounds of 

wheat, and 437 pounds of bran. 
Quantity used Alcohol produced 

Kind of material 

Molasses I 

Ethyl sulphate 

Grain 

Crude alcohols mixture . 

Pineapple juice 

Mixtures: 

Sulphite liquor 

Cellulose pulp and chemical mixture 

Potatoes 

Molasses 

Potato residue 

Barley 

Wheat 

Malt 

Bran 

Total 

Amount 

194, 156,883 

45, 785, 850 

159, 346, 879 

3, 119, 737 

3, 255,920 

10, 379, 740 

10, 124, 665 

703, 010 

444, 495 

371, 823 

27, 262 

14, 194 

8,125 

437 

Unit 

Gallons 

do 

Pounds 

Gallons 

do 

do 

Pounds 

do 

Gallons 

Pounds 

do 

do 

do 

do 

Proof 

gallons 

Percent 

of total 

167,108, 339 68.56 

61, 210, 110 25.12 

13, 976, 447 5.73 

544 224 .22 

239, 555 .10 

3 649, 081 .27 

243,727,756 100.00 

148 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 46.-Ethyl alcohol: Production, by kinds of materials used, fiscal year 1940 

I Additional amounts used in combination with other material included under "Mixtures." 

Includes 1,205,271 pounds of a corn sugar by-product. 

Includes 11,700 proof gallons produced at exper mental plants rom materials not shown. 

TABLE 47 -Denatured alcohol:I Plants operated, production, withdrawals, and 

stocks on hand June 30, by States, fiscal year 1940 

[Quantities in wine gallons ]] 

State 

Number 

of plants 

°Per] ated ] 

Completely denatured Specially denatured 

Production 

Withdrawals 

On hand 

June 30 

Production 

Withdrawals 

On band 

June 30 

California 

C....,--l ene1.*N co ,7.—Inacq.c.s.. 

135, 405 134, 726 776 2, 656, 254 2, 674, 324 25, 079 

Delaware 5, 994 28, 596 

District of Columbia 270 4, 074 8, 118 417, 292 418, 282 8, 152 

Hawaii 2, 204 2, 070 1, 650 34, 263 33, 819 444 

Idaho 5, 358 6, 164 2, 052 2, 042 

Illinois 1, 389, 413 1, 396, 503 8,837 3, 651, 883 3, 639, 837 28, 580 

Indiana 3, 542, 888 3, 597, 995 12, 112, 552 12, 087, 861 54, 761 

Kentucky 674,452 663,987 19, 454 

Louisiana 1, 094, 384 1, 106, 100 5,005 6, 842, 007 6, 840, 384 23, 617 

Maryland 1,594,809 1,614,268 20,178 12, 296, 269 12, 317, 634 74, 233 

Massachusetts 

New Jersey 

361, 562 

I, 901, 527 

459, 071 

1, 861, 667 

27, 460 

54, 683 

3, 662, 043 

22, 137, 430 

3, 639, 3M 

22, 191, 739 

40, M5 

66, 737 

New York 22, 593 26, 741 12, 216 325, 994 326, 424 1, 026 

Pennsylvania 4, 968, 559 4, 982, 767 357, 248 22, 908, 554 22, 950,054 43, 748 

Puerto Rico 284, 171 281, 664 3, 007 1, 578, 805 1,594,473 8,871 

Virginia 81,001 03,611 

West Virginia 39, 577 39, 585 4 21,881, 004 21, 903, 624 766, 023 

Wisconsin 3, 328 3, 299 140, 942 139, 089 2, 220 

Total 40 15, 352, 033 15, 495, 290 498,982 III, 409, 797 III, 509, 432 1, 163, 400 

I Included in denatured alcohol are 1,758, 711 tax gallons of rum and 80 377 tax gallons of other spirits transferred from distilleries for denaturation. The number of wine gallons is not reported. 

2 Standard United State gallons o 231 cubic inches. 

] Number operated during any pert of the year. 

Includes one denaturing plant operated in conjunction with an experimental plant. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 149 

TABLE 48.-Denatured alcohol: Production, by months, fiscal year 1940 

[Wine gallons] 

Month Completely 

denatured 

Specially 

denatured Total 

July 542,979 6, 893, 795 7,436, 774 

August 580,681 8, 610, 026 9,190,707 

September 2,101, 668 10, 523, 092 12,624, 6911 

October 4,906,874 10, 273, 937 15, 180,811 

November 9,943, 257 10, 221, 265 13,064, 522 

December 642, 408 10, 502, 388 11,144, 796 

January 1, 303, 991 9, 093, 651 10, 397, 642 

February 453,848 8, 005, 830 8,459,678 

March 413,509 9,110, 799 9, 524, 308 

April 267,688 9, 726, 136 9, 993, 824 

May 789,965 9, 252, 972 10,037, 437 

June__ 510, 665 9, 195, 976 9, 706, 641 

Total 15, 352, 033 111,409, 797 126, 761, 830 

TABLE 49.-Completely denatured alcohol: Withdrawals, by formulas and by 

months, fiscal year 1940 

[Wine gallons] 

Month 

Formula I 

Total 

13 14 12 11 10 

July 69, 600 419,293 37,344 1,231 221 527,689 

August 211,438 251, 002 18,854 168 1 481, 463 

September 1, 496, 913 638,000 44,700 2,331 220 2, 182, 164 

October 3, 939, 936 1, 181, 679 47,853 3,813 1,951 5, 175, 232 

November 1, 878, 470 961,685 58,416 3,490 731 2,902.792 

December 414,082 247,768 29,436 721 707 692,714 

January 629, 816 680,474 6,416 467 346 1,317, 519 

February 182,933 218,113 10, 892 168 996 412,602 

March 140,920 255, 709 2,649 168 33 399,479 

April 86,414 141, 168 2,133 212 3 229,930 

May 209,431 488, 614 6, 220 224 1 704,490 

June_ 86, 502 379, 531 2,958 224 1 469, 216 

Total 9, 346, 455 5, 863, 036 267,871 13,217 4, 711 15, 495, 290 

Information as to the composition of these formulae will be found in Treasury Decisions Nos. 10 and 

4648 and the Appendix to Regulations No. 3, Formulae for Completely and Specially Denatured Alcohol, 

Revised 1938, Treasury Department, Bureau of Internal Revenue. 

TABLE 50.-Specially denatured alcohol: Withdrawals, by formulas, fisca year 1940 

[Wine gallons] 

Formula I Amount Formula I Amount Formula I Amount Formula I Amount 

31, 019, 934 1, 289, 253 

, , 1 , , , .4 .4 -44:i yaa ril 

e'VA 2r,.).' 2U,- ,1:-I,nk nk gg', 

4, 531 39-A 17, 251 

972 2 -46 1, 026, 642 39-B 194, 982 

25, 415, 813 3,682 4,484 39-C ...... .. 715, 929 

1, 239, 333 465,397 8,902 39-D_ _ ___ _ _ 4,666 

3, 152 2, 576, 995 4, 177, 429 40 2, 613, 935 

1, 789, 079 771 7, 508 42 18, 212 

55,485 18,879 638, 512 44 109 

78, 981 66, 684 1, 856 45 5, 898 

400,125 38,274 33, 211 46 1,160 

703,697 5,421 250 47 6,152 

2, 139, 947 59,975 565, 715 

III, 509, 432 5, 964, 592 373, 874 15, 029 Total 

62,324 10,943 26, 252 

1, 854 27, 418, 710 344 

255 209,019 7,139 

I Information as to the composition and authorized uses of these ormulae will be found in the 1931 and 1938 

editions of the Appendix o Regulations No.3, Formulae for Completely and Specially Denatured Alcohol, 

Treasury Department, as amended by Treasury Decision No. 4967. 

2 Represents an excess of returns over withdrawks... 
150 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 51.-Specially denatured alcohol: Withdrawals, by leading' formulas and 

by months, fiscal year 1940 

[Wine gallons] 

Formula July August September October November December 

1 

29 

2-B 

18 

35-A 

40__ 

23-H 

17 

4 

23-A 

3-A 

32 

39-C 

13-A 

37 

38-B 

23-0 

12-A 

28 

30 

39-8 

All others . 

Total 

1, 857, 270 

1, 705, 374 

1, 551, 012 

279, 277 

159, 408 

193, 368 

183, 360 

135, 689 

141, 823 

72, 487 

56, 028 

82, 607 

47, 747 

38,854 

61, 529 

50, 853 

125, 087 

22, 198 

24,100 

19, 915 

17, 312 

34, 109 

3, 053, 486 

1, 766, 596 

1, 673, 352 

317, 052 

371, 588 

247, 025 

251, 527 

144, 051 

155, 150 

117, 255 

92, 552 

79, 962 

36, 634 

58, 495 

53, 936 

39, 861 

107, 133 

29, 954 

32, 150 

24, 596 

11, 249 

54, 295 

4,076, 634 

1, 788, 207 

2, 172, 084 

440, 023 

371, 524 

247, 829 

281, 887 

165, 414 

189,839 

135, 785 

152, 421 

112, 373 

81, 853 

82, 427 

47, 518 

63, 450 

117, 457 

26, 456 

16,150 

22, 920 

16, 452 

57,192 

3, 464, 655 

2, 021, 009 

2, 302, 873 

425, 330 

246,851 

253,177 

359,058 

194, 664 

133, 181 

137, 065 

129, 873 

116, 899 

62, 058 

70, 938 

57, 627 

49, 395 

38,818 

17, 360 

513, 800 

20, 693 

31, 564 

86, 697 

3, 078, 045 

1, 928, 856 

2, 328, 418 

562, 878 

441, 567 

202, 855 

402, 615 

193,960 

162,022 

130,638 

97, 580 

99, 529 

79, 050 

86, 903 

92, 995 

44, 723 

20, 613 

48, 801 

24, 450 

13, 263 

21, 901 

46, 608 

3, 575, 271 

2, 227, 359 

2, 184, 440 

570, 874 

487, 561 

213, 977 

359, 912 

160,732 

162,880 

120, 989 

130, 808 

93, 704 

76, 966 

64, 019 

85, 656 

69,892 

12, 862 

42, 560 

40, 559 

21, 723 

14, 922 

49, 653 

6, 859, 407 8, 717, 897 10, 665, 895 10, 276, 485 10,168, 270 10, 757, 319 

Formula January February March April May June Total 

1 

29 

2-B 

18 

35-A 

40 

23-H 

17 

4 

23-4 

3-A 

32 

39-C 

13-A 

37 

38-B 

23-0 

12-A 

28 

30 

39-B 

All others_ _ _ 

Total 

2,039, 196 

2, 375, 211 

2, 176,659 

• 568,336 

, 431,915 

173,325 

141, 348 

173, 112 

118, 653 

107, 063 

71,421 

88,887 

53, 634 

14,143 

15,576 

34, 114 

9, 699 

39, 791 

73,898 

18,051 

8, 374 

45, 429 

1, 628, 511 

2, 468, 699 

2,011, 928 

597,845 

309, 918 

171, 602 

103, 006 

155, 844 

112,346 

79, 006 

93,971 

55,213 

42, 787 

24,700 

28,881 

63,114 

10, 969 

32, 491 

19, 221 

10, 661 

27,108 

24,467 

2, 007, 813 

2, 756,019 

2, 186, 431 

653, 832 

260, 672 

225,645 

129, 865 

178,867 

137,178 

92, 518 

91,215 

63,901 

61, 695 

78,517 

43,097 

37, 818 

5, 778 

27, 361 

10, 430 

14, 261 

32,341 

2, 071, 487 

2, 863, 331 

2, 249, 966 

580, 713 

477, 362 

217, 152 

122, 535 

178,954 

160, 835 

105, 110 

122,013 

66,748 

55, 312 

59,663 

68,869 

35, 178 

6, 350 

39,180 

24,410 

15, 579 

12, 360 

38, 461 

2, 100, 812 

2,689, 661 

2, 341, 031 

545,071 

312, 196 

206,506 

104, 397 

218, 717 

151, 492 

100, 474 

111. 271 

78,635 

45, 135 

74,366 

47,595 

44, 347 

5, 325 

45, 688 

32,450 

9, 549 

17, 329 

50,074 

2, 016, 754 

2, 828, 388 

2,238,620 

423, 361 

306, 869 

201,504 

137, 485 

239, 943 

143,680 

90,863 

90,180 

88,184 

73, 058 

50,602 

46,334 

42, 970 

5, 306 

28, 285 

24,450 

12, 479 

18, 597 

48,593 

31, 019, 934 

27, 418, 710 

25, 415, 813 

5,964, 592 

4, 177,429 

2, 613, 965 

2, 576, 995 

2, 139, 947 

1, 789, 079 

1, 289, 253 

1, 239, 333 

1,026,642 

715, 929 

703,627 

638,512 

565, 715 

461, 397 

400,125 

373,874 

209,019 

194, 982 

570,560 

8, 828, 435 8, 092, 287 9, 094, 254 9, 581, 557 9, 332,121 9,155, 505 111, 509, 432 

Withdrawals for the year exceeding 100,000 gallons ranked in order of total withdrawals. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 151 

TABLE 52.-Specially denatured alcohol: Operations of bonded dealers, by States, 

fiscal year 1940 

[Quantities in wine gallons] 

State 

Number of 

dealers 

operating I 

Received Removed On hand 

Rine 30 

California 13, 134 13,407 

ggR§g§g1FRAti,.0 

oTtzt,g -r:egr.:747 554g29:<4 ---r-ta 

Connecticut 33,340 33,222 

Georgia 9,048 9,966 

Illinois 772, 497 774, 611 

Indiana 972 1,134 

Kentucky 35, 214 35, 538 

Maryland 169,434 160, 938 

Massachusetts 257,375 265,788 

Michigan 98,626 96,816 

Minnesota 

CO 

81,957 79,323 

Missouri 134,292 136,382 

New Jersey 1, 291, 002 1, 288, 073 

New York 261, 264 258, 487 

Ohio 241, 099 243, 224 

Pennsylvania 39,537 38, 117 

Tennessee 6,966 6,426 

Texas 12, 937 13, 305 

Utah 9, 372 7, 612 

Washington 4,796 4,082 

Total 52 3, 472, 762 3. 466,461 381, 655 

Number operating during any part of the year. 

TABLE 53.-Specially denatured alcohol: Operations of manufacturers, by States, 

fiscal year 1940 

[Quantities in wine gallons] 

State 

Number of 

manilla°. turers operating! Received Recovered 

after use 5 

Used in manufacturing On band 

June 30 

Alabama 38 75, 203 24, 210 98, 589 6, 317 

Arizona 3 47 39 11 

Arkansas 17 51,084 47, 432 11,873 

California 297 2, 829, 422 1, 383, 461 4,184, 940 165, 360 

Colorado 28 45,723 41,834 4,485 

Connecticut 75 735,860 380,644 1, 071, 776 81,125 

Delaware__. 12 08,117 312,337 376,617 15, 182 

District of Columbia 33 449, 814 459 119 6, 267 

Florida 29 9,823 5,508 14,708 2,119 

Georgia 50 49, 084 21, 008 71, 168 1, 454 

Hawaii 8 20, 158 20, 047 141 

Idaho 7 2, 085 1, 394 702 

Illinois 467 5, 856, 716 443, 279 6, 292,144 238, 096 

Indiana 106 5, 926, 846 3, 307, 631 8, 004, 443 1,288, 442 

Iowa 51 175,101 ___ 186,015 6,796 

Kansas 33 54,890 30 53, 270 3,327 

Kentucky 49 392, 770 394, 514 22, 039 

Louisiana 77 6, 272, 273 5, 308, 997 66,198 

Maine ____ ___________________________ s a-1, 385 175 271 64 

Maryland 87 10, 203, 974 303, 375 10, 437, 013 180, 475 

Massachusetts 289 3, 850, 935 3, 513, 103 7, 310, 057 212,543 

Michigan 149 2, 244, 071 1, 673, 242 3, 911, 478 141, 330 

Minnesota 67 210, 841 93 209, 836 8, 059 

Mississippi 26 79,796 4, 090,044 4, 170, 991 6,111 

Missouri 163 1, 808, 931 2, 649, 546 4, 445, 505 180. 551 

Montana 3 13 13 3 

Nebraska 24 14,412 67,368 81,170 1,408 

New Hampshire 8 12, 079 12, 118 268 

New Jersey__ 266 19, 336, 937 19,002, 792 38, 308, 245 670, 667 

New Mexico 1 54 7 47 

New York 814 48 224 258 2_ 826 499 k OM_ 928 315.253 

Number operating during any part of the year. 

r In some industries where the denatured alcohol does not become a part of the product, a portion is recovered and reused. 

8Represents an excess of returns over receipts. 

•Includes 149,020 wine gallons recovered from solutions received containing specially denatured alcohol. 
152 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 53.-Specially denatured alcohol: Operations of manufacturers, by States, 

fiscal year 1940-Continued 

[Quantities in wine gallons] 

State 

Number of 

manilla°. 

Curers 

operating 

Received Recovered 

after use 

Used in manufacturing 

On hand 

June 30 

North Carolina 44 2, 581, 953 197, 480 2, 786, 604 103, 095 

North Dakota 6 47 43 25 

Ohio 271 997, 465 423, 278 1, 435, 485 60,993 

Oklahoma 41 41, 390 46, 906 3, 393 

Oregon 16 15,382 17,990 2,773 

Pennsylvania 320 7, 714, 356 2, 775, 987 10, 493, 257 142,468 

Puerto Rico 20 1, 570, 617 __ 1, 571, 033 1,436 

Rhode Island 34 120, 334 50, 482 172, 208 5, 553 

South Carolina 12 1, 088 1,135 166 

South Dakota 6 277 238 73 

Tennessee 72 9, 986, 502 9, 425 8, 466, 872 1, 830, 861 

Texas 111 314,519 3,839 323,966 25,190 

Utah 13 7, 873 7,686 501 

Vermont 7 6, 023 6, 156 168 

Virginia 62 586,443 795, 125 1, 362, 637 55, 927 

Washington 42 7, 392 ____ _ 7, 257 1, 594 

West Virginia 18 21, 194, 020 24, 786, 222 45, 975, 615 90,703 

Wisconsin 101 197, 232 18 197, 995 12, 620 

Wyoming 2 3 2 

Total 4, 283 III, 342, 945 69, 046, 201 177, 333, 764 5, 974,138 

TABLE 54.-Distilled spirits: Number of distilleries and internal-revenue bonded 

warehouses operated,' by States, fiscal year 1940 

State 

Distilleries Internalrevenue 

bonded 

Whisky Rum Gin Brandy Other 5 Total 5 ;Samuel 

Arizona 

Arkansas 

California 

Colorado 

Connecticut 

Georgia 

Hawaii 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

New Jersey 

New York 

Ohio_ 

Oregon 

Pennsylvania 

Tennessee 

Vermont 

Virginia 

Washington 

Wisconsin 

Total 

1 

3 

1 

No, 

.4-41 

3 5 

4. 4d N. 

N .4.44:14 444 4-1 

4-4 4-4t-e.MeR MOCC4NeMN NN mM Y. 

2 

79 

2 

5 

1 

2 

12 

9 

72 

19 

8 

2 

3 8 

12 

7 

7 

23 

1 

1 

8 

3 

1 

92 5 12 120 14 221 295 

I Number operated during any part of the year. 

Except as otherwise noted represents distilleries producing high-proof spirits. 

3 Exclusive of duplications whichresulted from plants producing more than one kind of spirits. 

5Okolebao and arak. 

REPORT OF COMMISSIONER OF • INTERNAL REVENUE 153 

TABLE 55.-Distilled spirits: Production by kinds and by months, fiscal year 1940 

[Tax gallons 

Month Whisky Rum Gin 5 Brand y 5 Other spirits Total 

July 

August 

3, 711, 149 153, 435 511,253 42, 367 962,596 5, 380, 800 4, 391, 956 175, 537 415,091 324,178 1,083,896 6,390,658 September 4, 915, 491 223,963 607, 099 3, 240, 237 1,188, 202 10,174, 992 October 7,084,085 261,503 552,101 8, 415, 140 1, 743, 021 18, 055, 850 November 

December 

9, 017, 606 281,505 571,097 3, 709, 450 I, 444, 010 15,023, 668 8, 060, 053 222, 402 429,927 1,113, 978 1, 759, 210 11, 585, 570 January 10, 434, 685 194,815 354,317 472, 051 1, 552, 865 12, 954, 733 February 

March 

9, 878, 334 170, 398 209, 383 278, 070 1, 588, 527 12,124, 712 10, 587, 747 223, 547 662,648 247,402 1, 510, 434 13,231, 778 April 

May 

11, 233, 223 188, 027 837,055 225,152 1, 465, 136 13, 948, 593 11, 491,570 213,358 502,079 226,572 1, 492,175 13, 925, 754 Tune 8,187, 404 223, 212 611, 521 132, 228 1, 503, 719 10, 658,089 

Total 98, 993, 303 42, 477, 702 6, 263, 571 18, 426, 825 517, 293, 791 143, 455,192 

Figures are in tax gallons. The tax on distilled spin s is collected on the basis of proof gallons for spirits 

of 100 proof or over and on the basis of wine gallons for spirits of less than 100 proof. (See secs. 2800 and 2809, 

Internal Revenue Code, 1939.) The proof of spirits is twice the percent of the content, by volume, of ethyl 

alcohol. Spirits containing 50 percent ethyl alcohol by volume are, accordingly, 100 proof. A standard proof gallon is a wine gallon (231 cubic inches) of 100 proof spirits. The number of proof gallons contained 

in a wine gallon of spirits of proof other than 100 is proportional to the alcoholic content. (The units 

described are based upon spirits at 60 degrees Fahrenheit, at which temperature ethyl alcohol has a specific gravity of .7939.) 

I For additional production of gin at rectifying plants, see table 67. 

3 See table 57 for kinds of brandy produced. 

Includes 1,758,711 gallons produced at distilleries for denaturation. 

All high-proof spirits produced at distilleries except 80,377 gallons of spirits produced for denaturation, 

1,331 gallons of okolehao, and 946 gallons of arak. 

TABLE 56.-Distilled spirits: Production, by kinds and by States, fiscal year 1940 

[Tax gallons] 

State Whisky Rum Gin I Brandy i Other 

spirits Total 

Arizona 155,788 155, 788 Arkansas 

California 3, 936 3, 936 250,181 251, 184 17, 682, 761 24, 742 18, 208, 868 Colorado 8, 239 8, 234 Connecticut 18, 769 1, 256 3, M5 856 24,106 Georgia 34, 941 34, 441 Hawaii 7, 456 2, 708 10,169 Illinois 18, 462, 996 2, 001, 053 1, 721, 654 22,185, 703 Indiana 16, 725, 898 1, 443, 932 10, 588, 822 28, 758, 652 Kentucky 42, 073, 690 I, 105,113 

Maryland 93, 178, 803 

Massachusetts 

8, 434, 955 633, 731 4,118 3,127, 835 12, 21)0, 637 66, 503 1, 295, 394 Missouri 1,361 897 368,064 368,

, 

New Jersey 064 

New York 375, 792 375, 792 886, 697 76, 078 45, 487 1,008, 262 Ohio 

Oregon 

4, 613, 068 16, 737 802, 393 5, 432, 198 

18, 501 18, 501 Pennsylvania 7, 080, 788 69, 739 1, 045, 718 979, 294 9, 175, 539 Tennessee 259,780 18,943 278,223 Virginia 

Washington 

471, 290 79, 892 551, 182 

Wisconsin 112,903 112,903 3, 299 3, 299 

Total 98, 993, 303 52, 477, 702 6, 263, 571 18, 426, 825 17, 293, 791 143, 955,192 

For additional production of gin at recti ying plants, see table 68. See table 57 for kinds of brandy produced. 

5Includes 1,758,711 gallons p oduced at distilleries for denaturation. 

All high-proof spirits produced at distilleries except 80,377 gallons of spirits produced for denaturation, 

1,331 gallons of okolehao, and 946 gallons of arak. 

269679-40--11 
154 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 57.-Distilled spirits: Brandy 194 prod

0

uced, by kinds and by States, fiscal year 

[Tax gallons] 

Kind California New Jersey Ohio Oregon Washington Total 

Grape 

Raisin 

Apple 

Peach 

Blackberry 

Apricot 

Prune 

Plum 

Pear 

Cherry 

Elderberry 

Total 

81,

, 

 038 

1, 708 

10,566 

15, 074, 979 

2, 607 491 

7, 045 

355, 396 

19, 202 

253 

941 

4, 553 

7, 642 

3, 574 

543 

426 

6, 746 

6,946 

4, 809 

38, 548 

60, 285 

6,886 

4, 330 

2,855 

115, 124, 784 

2, 507, 491 

2 687, 790 

' 36, 891 

130,756 

11, 441 

11,376 

6,946 

45, 207 

3,398 

425 

17, 882, 761 375, 792 16, 737 18, 501 112, 903 418, 426, 825 

1 Includes 3,615 gallons in Arkansas. Includes 3,225 gallons in Connecticut, 4,116 gallons in Maryland, 76,078 gallons in New York, 17,556 

gallons in Tennessee, and 78,797 gallons in Virginia. 

1 Includes 34,441 gallons in Georgia and 489 gallons in Tennessee. 

Includes 1,095 gallons in Virginia. 

Includes 398 gallons in Tennessee. 

Includes 321 gallons of raspberry brandy produced in Arkansas. 

TABLE 58.-Distilled spirits: Total withdrawals, tax-paid? by kinds and by months, 

fiscal year 1940 

[Tax gallons] 

Month Whisky Rum Gin Brandy Other 

spirits Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

Ap 

May 

June 

Total 

4, 334,371 

5,065,658 

6, 786, 763 

8, 533, 535 

10, 389,954 

7,682,693 

5, 486, 664 

6, 616, 175 

6, 461,332 

5, 772, 509 

5, 826, 749 

8,330,966 

35,217 

46,645 

53, 095 

74,789 

88, 025 

60,450 

47, 681 

42, 652 

45, 731 

41, 159 

43, 602 

46,426 

487,615 

515,374 

570,141 

480,552 

623,831 

351,709 

289, 570 

300, 982 

719,220 

868, 624 

495,653 

647,940 

65,473 

83,714 

125, 054 

189,497 

246, 863 

200,514 

146, 747 

107,070 

121,616 

110, 665 

96, 101 

84,608 

693, 751 

919, 216 

1, 231, 810 

1, 813, 914 

2,143, 784 

1,084, 146 

570, 621 

861, 706 

1,050, 466 

1,000, 505 

1,059, 454 

1,762,100 

5, 596, 427 

6,630,607 

8, 766,663 

11,092,287 

13, 470, 948 

9, 379, 512 

8, 541,283 

7, 928,485 

8,398,365 

7, 7, 462 

7, 521, 559 

10, 862,039 

81, 267,368 625,372 6, 330, 711 1, 576,911 14, 181, 273 103, 981,635 

1 These figures refer to spirits withdrawn subject to tax at the rate of $2.25 per ax gallon, w th the exception of brandy, for which the rate was $2 per tax gallon. Effective July 1, 1940, the rate was increased 78 

cents per tax gallon on all distilled spirits. In addition, 14,469,514 tax gallons of brandy were transferred 

from brandy distilleries and 3,137,270 tax gallons of brandy were withdrawn from intematrevenue bonded 

warehouses for the fortification of wine, subject to tax at the rate of 10 cents per proof gallon. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 155 

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

fiscal year 1940 

[Tax gallons] 

State Whisky Rum Gin Brandy Other spirits spi Total 

Arizona 32,039 32,039 

California 4, 201, 448 18, 881 284, 234 382,119 34, 472 4,901, 154 

Colorado 68, 201 68, 201 

Connecticut 217, 756 7, 320 357 14, 417 172 240,022 

Georgia 4,379 4,379 

Hawaii 364 2,120 1,838 4,322 

Illinois 16, 395, 660 90, 809 2, 020, 230 242,888 1, 245,306 19, 991, 983 

Indiana 11,093,866 32, 429 1, 138, 688 60, 273 7, 512, 010 20,137, 266 

Kentucky 26, 980, 450 13, 921 724 10, 291 225,814 27, 231,190 

Louisiana 278, 028 25, 661 43 303, 732 

Maryland 7, 552, 703 2, 257 668, 529 27,124 3, 498, 091 11,748,704 

Massachusetts 1, 258, 786 272,671 3,489 31,787 50 1, 566, 783 

Michigan 82, 535 82, 535 

Minnesota 321, 373 294 2,157 41, 420 366, 244 

Missouri 643, 777 1, 021 30 9,375 654, 203 

New Jersey I, 305, 194 19,876 3, 316 399, 594 1,727,979 

New York 123, 038 886,698 262,116 41 1, 261, 898 

Ohio 3, 647, 801 1, 432 35, 771 132, 853 3, 817, 857 

Oregon 2,937 2,937 

Pennsylvania 6,835, 428 136, 681 I, 022,216 65, 031 1, 530, 429 9, 589, 785 

Tennessee 7,486 1,814 9,300 

Vermont 107 107 

Virginia 181,579 15,515 197,004 

Washington 39, 581 70 39, 651 

Wisconsin 275 276 

Total 81, 267,368 625, 372 6,330, 711 1, 576, 911 14, 181,273 103,981,635 

l These figures refer to spirit withdrawn subject to tax at the rate of $2.25per taz gallon, with the exception 

of brandy, for which the rate was $2 per tax gallon. Effective July 1, 1940, the rate was incr ased 76 cents 

per tax gallon on all distilled spirits. In addition, 14,469,514 tax gallons of brandy were transferred from 

brandy distilleries and 3,137,2 0 tax gallons of brandy were withdrawn from internal-revenue bonded warehouses for the fortification of wine, subject to tax at the rate of 10 cents per proof gallon. 

TABLE 60.-Distilled spirits: Bottled-in-bond 1withdrawals, tax-paid, by kinds and 

by months, fiscal year 1940 

[Tax gallons] 

Month Whisky Rum Gin Brandy riders Total 

July 538,458 1,614 2, 703 542,805 

August 658, 723 2, 386 18 3, 887 665, 014 

September 930,033 2,347 35 6,698 302 939,415 

October 1,175,938 2,819 105 7, 151 198 1,188,006 

November 1, 885, 579 3,384 15,428 1,704,389 

December I, 791, 532 5, 694 183 14,932 1,812,341 

January 1, 060,627 2, 898 24 12, 611 1, 076,060 

February 1, 111,148 1,999 15 3,282 1, 116,444 

March 1,156 879 2, 282 5, 774 1,184, 715 

AurIl 973,776 2,480 105 8,827 985,188 

May 995,507 5,661 237 3,943 1,005,848 

June 1,491,708 3,053 1,373 6,087 1,502,218 

Total 13, 569, 728 36,397 2,096 91,221 I 600 13,699,941 

1These spirits were bottled in bond prior to the payment of tax, with the exception of 1,713,957 gallons 

of whisky and a lag gallons of brandy battled in hand after payment of tax. The figures in this table are 

included in total wit drawals as sho n in table58. 

Okolehao. 
REPORT OF COMMISSIONER OF INTERNAL REVENUE 157 

TABLE 63.-Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by years and seasons of production, June 30, 1940 

[Tax gallons] 

156 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

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

by States, fiscal year 1940 

[Tax gallons] 

State Whisky Rum Gin Brandy Other 

 spirits Total 

California 487,534 325 34 38,963 526,856 

Colorado 6,782 6,782 

Connecticut 16, 207 16, 207 

Hawaii 89 14 500 603 

Illinois 1, 473,353 259 1 4, 872 1,478,485 

Indiana 1,166,621 300 10,342 1,177, 263 

Kentucky 6, 268,480 18 114 4, 442 6, 273,054 

Maryland 743,723 1, 177 744,900 

Massachusetts 104, 872 27, 460 53 39 132, 424 

Minnesota 27, 761 27, 761 

Missouri 193,376 9 30 6 193,421 

New Jersey 190, 577 1, 740 6,815 198,132 

New York 

Ohio 

80,315 

604,111 

1,671 82,486 

604, Ill 

Pennsylvania 2, 192, 287 8,012 123 23,894 2,224,316 

Washington 13, 140 13, 140 

Total 13, 569, 728 36,397 2, 095 91, 221 2 500 13,699, 941 

1 These spirits were bottled in bond prior to the payment of tax wi h the excep ion of 1,713,957 gallons of 

whisky and 3,738 gallons of brandy bottled in bond after payment o tax. The figures in this table are included in total withdrawals, as shown in table 59. 

Okolehao. 

TABLE 62.-Distilled spirits: Stocks remaining in internal-revenue bonded warehouses, by kinds and by States, June 30, 1940 

[Tax gal tins] 

State Whisky Rum Gin Brandy Other 

 • spirits Total 

Arizona 426,893 426,893 

California 4,520, 652 22,423 57,243 15, 878, 121 4,964 20,483,403 

Colorado 137,357 137,357 

Connecticut 120,455 6,4457 898 53,582 684 182,076 

Georgia 43,601 43,801 

Hawaii 8,157 9, 180 17, 203 34, 540 

Illinois 78,118, 642 110, 365 41,395 430, 581 1, 353,582 80, 052, 585 

Indiana 75, 783,610 31, 979 48, 050 339, 351 12, 703,346 88, 906,336 

Kentucky 197, 823, 912 393, 522 7, 572 29, 498 32, 223 198, 236, 727 

Louisiana 115, 305 358,102 12, 393 485,800 

Maryland 48, 001,473 480 8,811 62, 698 3,229,444 51, 302, 906 

Massachusetts 

Michigan 

2, 921, 756 

567,196 

1, 336,136 51 91, 850 4, 349, 793 

567, 196 

Minnesota 185, 437 430 2, 822 17, 200 205,889 

Missouri 1, 039, 767 494 491 5,968 1,046, 720 

New Jersey 1, 341, 641 8, 425 498 959, 990 2, 310, 054 

New York 77, 510 597.333 284 675,127 

Ohio 15,070, 117 766 44,099 3, 164, 537 18, 279, 619 

Oregon 51, 203 51, 203 

Pennsylvania 52, 450, 215 1, 390, 612 26, 797 398,800 885, 827 55, 152,051 

Tennessee 296,058 16, 595 312, 653 

Vermont 22, 500 22, 500 

Virginia 1, 587,151 155,685 1, 742, 836 

Washington 

Wisconsin 74,071 

280, 391 

292 _ r 

3, 715 28, 710 312, 816 

74, 363 

Total 480, 937, 609 3, 618, 690 210, 736 19, 213, 345 21, 414, 594 1525, 394, 924 

la addition, there were 7,461 gallons of unclassified spirits in export storage warehouses. 

Year Season Whisky Rum Gin Brandy Total s°ptiker ints 

1911 Spring 89 

Fall 1

89

35 135 

1912 Spring 689 889 

Fall 30 162 192 

1913 Spring 2,739 137 2, 876 

Fall 1, 553 1, 553 

1914 Spring 2,497 2,497 

Fall 318 279 597 

1915 Spring 2,193 58 6 2,267 

Fall 1,428 131 1,559 

1916 Suring 18, 757 18,757 

Fall 11, 915 300 12,388 

1917 Spring 7, 898 297 1, 644 96 7, 082 17, 017 

Fall 12, 338 449 25, 639 11 18, 757 57,194 

1919 Fall 87 179 266 

1920 Spring 286 I 98 384 

Fall 2,502 2,502 

1921 Spring 2,074 2,074 

Fall 52, 080 959 53,034 

1922 Spring 351 351 

Fall 357 357 

1928 Spring 666 666 

1932 Fall 15,435 12, 229 10, 356 38, 020 

1933 Spring 163, 344 3, 760 167,104 

Fail 270, 753 80, 410 12,138 363, 301 

1934 Spring 2, 066, 861 13, 314 441 75, 595 2,156, 211 

Fall 3,193, 701 332, 517 417 52, 225 3, 578, 880 

1935 Spring 7, 277, 272 879, 148 821 45, 784 8, 203, 025 

Fall 14, 115, 263 99,619 12,598 224,645 14,452,125 

1936 Spring 44, 894, 096 136,132 5,232 185,542 45, 171,002 

Fall 73, 459, 8IXI 185, 338 3,222 480,878 334,816 74,964, 153 

1937 Spring 72,106, 709 326, 629 15, 589 304, 478 734, 248 73, 987, 648 

Fall 35, 854, 657 241, 871 13, 646 1, 768, 833 820,646 38,699,553 

1938 Spring42,188,904 92,188, 70, 632 2, 744 480,319 2, 317, 400 45,059, 999 

Fall 39, 792,505 304,449 1, 985 11,261, 468 1, 909,947 53,270,334 

1939 Spring 48,262, 530 273,476 1,315, 877 5,049,079 59,900,957 

Fall 36, 096, 829 335, 872 20,179 2,169, 313 3,900,897 42,523,090 

1940 Spring 61, 109, 178 328, 034 106,699 818, 570 6, 321, 629 68,682, 110 

Total 480, 937, 609 3, 618, 640 210, 736 19, 213, 345 21,419, 594 5525,394,924 

Due to error, no figure was reported as of June 30, 1939. 

In addition, there were 7,461 gallons of unclassified spirits in export storage warehouses. 
Molasses' State 

Grains 

Arizona 

California 

Colorado 

Connecticut 

Hawaii 

Illinois 

Indiana 

Kentucky 

Maryland 

Massachusetts 

Missouri 

New York 

Ohio 

Pennsylvania 

Tennessee 

Virginia 

Wisconsin 

Corn 

Pounds 

1, 176, 294 

% 607, 873 

94,080 

174,766 

163,191,4% 

246,905, 380 

339, 197, 602 

61, 233, 092 

582,800 

3,423,814 

9, 570, 174 

48, 697, 392 

40, 127,851 

% 609, 712 

3,603, 768 

7, 358 

Rye 

Pounds 

486,666 

398, 665 

11, 760 

86,427 

64,250,812 

44,900,668 

83, 906, 5® 

64,020,991 

80, 479 

671,077 

76,038 

8, 246, 224 

41, 321, 712 

289, 408 

1, 184, 400 

34,016 

Malt 

Pounds 

300,246 

445,286 

11, 760 

25, 520 

29,857, 599 

3% 013,424 

63,917,886 

22,004, 797 

81, 160 

607, 349 

1, 315, 788 

7, 308,784 

12, 649, 356 

354,480 

713, 606 

9, 688 

Wheat 

Pounds 

1, 603,280 

71, 4130 

109, 338 

Total 

Pounds 

1,963,206 

4,451, 704 

117,600 

230, 713 

252,299,839 

326,819,462 

• 489, 161, 058 

147, 258, 880 

744, 439 

4,70%240 

10,962,000 

6%323,800 

94,208, 257 

3, 253, 600 

5, 601, 774 

51, 062 

Gallons 

190, 397 

16,400 

1,435, 394 

1, 598,750 

1,087,060 

Total 922,203,384 309, 909, 733 169,616,709 1, 784, 018 1, 404, 049, 632 4,328,001 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 159 

TABLE 66.-Distilled spirits: Materials used in the production of brandy, by kinds 

and by States, fiscal year 1940 

FRUIT I 

158 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 64.-Distilled spirits: Losses in internal-revenue bonded warehouses from 

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

kinds of spirits, fiscal year 1940 

[Tax gallons] 

State Whisky Rum Gin Brandy - Other spirits Total 

Losses from leakage and evaporation: I 

Arizona 4, 771 4, 771 

California 780, 755 2, 661 837 50, 510 1, 319 836,082 

Colorado 10,235 10,235 

Connecticut 24,756 623 1 1,663 31,043 

Georgia 230 230 

Hawaii 50 96 466 148 760 

Illinois 2, 507, 34D 8,442 842 22,595 26,262 2, 565, 490 

Indiana 2, 137, 200 1, 426 758 6,863 292, 719 2, 438,768 

Kentucky 

Louisiana 

5, 365, 492 

28,175 

2,238 

2, 300 

1,166 

9 

2,121 23,003 5,393, 020 

30,484 

Maryland 1, 585, 778 357 4,887 186,028 I, 777, 050 

Massachusetts 191, 969 36, 788 3, 108 231, 865 

Michigan 14, 675 14,675 

Minnesota 65,411 36 1 4,327 69,775 

Missouri 108, 517 240 1,020 102 109,879 

New Jersey 209,165 1,824 1 53,778 264,758 

New York 26,804 30 35, 676 1 62, 511 

Ohio 677, 707 193 2, 158 6,380 686, 438 

Oregon 388 388 

Pennsylvania 1, 561, 019 23, 775 382 9, 329 75, 982 1,670, 487 

Tennessee 451 34 485 

Vermont 23 23 

Virginia 24,988 2,661 27,649 

Washington 7,822 1,897 9, 719 

Wisconsin 25 25 

Total 15, 337,104 80,999 5, 513 202,127 610,865 16,236,608 

Losses from other causes I 5,682 54 1,777 6,287 967 14,767 

Total losses 15, 342, 786 81, 053 7, 290 208,414 611,832 16,251,375 

1 Difference between entry and withdrawal gauge of all spirits withdrawn from bonded warehouses. 

Losses from fire, theft, casualty, etc 

TABLE 65.-Distilled spirits: Grains and molasses used in production,' by States, 

fiscal year 1940 

For materials used in the production of brandy see table 66. In addition to the grain and molasses shown 

above, 10000 pounds of sake lees, 800 pounds of coconut juice, and 1,780 gallons of guava and cane juice 

used in 8Wall, and 206,939 pounds of diamalt used in Illinois. 

1 All used in the production of ruin with the exception of 190,397 gallons in California and 1,002,585 gallons 

in Pennsylvania used for gin, 2,400 gallons in Hawaii used for okolehao, and 800 gallons in Hawaii used for 

spirits. 

Includes 535,788 pounds of barley. 

Kind California Tennessee Watinl g] Total 

Pounds Pounds Pounds Pounds 

Raisins 9, 658,421 9, 658,421 

Grapes 7,891,997 7,841,947 

Apples 1, 737,000 1,479, 157 1, 224,610 4,440, 767 

Apricots 1, 200,000 1,270,000 

Peaches 235,000 103,957 338,957 

Pears 49,998 49,998 

Total 20, 672, 368 1, 633, 112 1, 224, 610 23, 530, 090 

FRUIT WINE, CIDER, AND JUICE ' 

Kind California New Jersey Ohio Oregon Washington Total 

Gallons Gallons G allow Gallons Gallons Gallons 

Grape 101,045, 478 68, 347 276,995 1 101,411, 710 

Raisin 18, 124, 015 18, 124, 015 

Apple 235, 000 3, 016,668 34, 395 56, 971 472, 329 34, 956,875 

Blackberry 93,187 27,424 37,994 $ 166, 945 

Peach 1,500 6142,924 

Prune 83,050 33,373 115,423 

Pear 47, 852 47, 852 

Plum 40,285 40,285 

Cherry 3, 095 15,843 18, 938 

Apricot 10, 500 10, 500 

Elderberry 3, 149 3, 149 

Total 119, 986, 543 3, 121, 055 136, 410 145, 108 836, 034 7125, 091, 983 

I In addition, the following amounts of fruit residuums were used: ,744 gallons of lees in Arkansas, 864,802 

gallons in California, and 21, 26 gallons in Ohio; and 4,669,562 gallons of grape pomace in California. 

3Not included are 12,471,506 gallons of grape wash in California. 

Includes 20,890 gallons in Arkansas. 

Includes 40,214 gallons in Connecticut, 37,800 gallons in Maryland, 589,504 gallons in New York, 111,652 

gallons in Tennessee, and 462,392 gallons In Virginia. 

6Includes 9,640 gallons in Virginia. 

6Includes 141,424 gallons in Georgia. 

Includes 3,367 gallons of raspberry wine in Arkansas. 

TABLE 67.-Rectified spirits and wines: Production, by kinds and by months, fiscal 

year 1940 

[Proof gallons fl 

Month Whisky Gin 

Cordials 

and Iiqueurs 

Miscellane- 

 ous Total 

July 2, 013, 707 773,516 119,123 24,958 2, 930, 302 

August 2, 332, 435 672,674 150, 711 33,093 3,188,913 

September 3,257,988 493,444 223,737 30, 793 4,004,962 

October 4,329,109 544, 966 296, 249 31,393 5,201, 714 

November 5,533,073 447,938 318, 362 42,905 6, 341, 278 

December 3, 7A9, 488 411, 595 296,209 44,992 4, 002, 284 

January 2, 077, 502 357, 737 211, 364 32, 117 2,678, 720 

February 3, 838, 870 360, 627 177, 856 24,430 3, 401, 783 

March 2,663 386 599,538 179,550 31,715 3, 480, 189 

April 2, 764,123 772,980 156,127 27,804 3, 721, 034 

May 2, 694,226 590, 808 157,449 23,203 3, 466, 286 

Tune 4, 218, 320 842, 274 150, 969 27, 642 5, 239, 105 

Total 37, 977, 224 6, 866,097 2,437, 706 2375, 543 47, 656, 570 

1 The figures are in proof gallons. Except for compounds containing sweet wine fortified with grape 

brandy, the tax on rectified products is collected on the basis of proof gallons. (See sec. 2801, Internal Revenue Code 1939.) For a definition of a proof gallon see footnote 1, table 42. 

'Includes 110,809 proof gallons of rum, 78,9% proof gallons of alcohol, 74,372 proof gallons of brandy, 31,440 

proof gallons of wine, 3,496 proof gallons of vermouth, 177 proof gallons of high-proof spirits, and 76,316 proof 

gallons of other unclassified spirits. 
160 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 68.-Rectified spirits and wines: Number of plants operated and production 

by kinds, by States, fiscal year 1940 

[Quantities In proof gallons] 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 161 

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

kinds and by States, fiscal year 1940 

rpm( gallons] 

State 

Number 

of plants 

operated i 

Whisky Gin 

Cordials 

and 

liqueurs 

Miscallsnexus Total 

Arkansas 

California 

Colorado 

Connecticut 

Hawaii 

Illinois 

Indiana 

Kentucky 

Louisiana 

Maine 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

New Jersey 

New Mexico 

New York 

Ohio 

Oregon 

Pennsylvania 

Rhode Island 

Tennessee 

Vermont 

Washington 

Wisconsin 

Total 

32 

15 

1 

26 

12 

10 

7 

1 

19 

29 

3 

4 

8 

14 

1 

19 

11 

29 

1 

1 

1 

3 

5 

1 

1 

1 

467, 899 

278, 290 

168 

2, 056, 700 

8,157, 610 

4, 028, 648 

782 

3, 819 

9, 965, 761 

1, 189, 153 

7, 222 

12, 803 

4, 651 

1,82, 015 

311 

830, 018 

1, 333, 224 

7, 758, 754 

31, 690 

1, 336 

23, 258 

71 

2,041 

3, 287 

698, 226 

2, 433 

300, 558 

356 

342, 411 

189, 034 

30, 852 

183, 928 

17, 542 

197, 237 

558, 098 

85 

6, 450 

83, 861 

2, 093, 598 

73 

349, 234 

721, 669 

1, 087, 676 

10, 879 

8, 610 

2,442 

94, 676 

593 

90, 939 

509 

717, 524 

40, 000 

8, 966 

25, 116 

1,222 

25,117 

408, 571 

182, 278 

59, 324 

92, 777 

112, 405 

1, 193 

64, 584 

230, 398 

260 

243, 932 

1, 087 

2, 213 

649 

30, 898 

33 

38,611 

41, 608 

2, 763 

43, 935 

17, 002 

75 

1,168 

5, 894 

23, 531 

9, 501 

38, 732 

105 

4, 907 

2, 854 

37, 426 

47, 475 

64 

57, 703 

2, 189 

5,729 

1, 299, 412 

3, 026 

711, 395 

3, 796 

3, 160, 570 

8, 403, 646 

4, 068, 21 

210, 994 

22,593 

10,194, 009 

2, 179,351 

199,086 

117, 309 

181, 394 

4, 033, 925 

4, 431 

1, 281, 262 

2, 332, 766 

324 

9, 128, 065 

24, 345. 

2, 284 

2,074 

43, 218 

43,033 

255 37, 977, 224 6, 866,097 2, 437, 706 1 375, 543 47, 656, 579 

2 The number operated during any part of the year. 'Includes 110, 809 proof gallons of rum, 78,933 proof gallons of alcoho , 74,372 proo gallons of brandy, 31,440 

proof gallons of wine, 3,496 proof gallons of vermouth, 177 proof gallons of high-proof spirits, and 76,318 proof 

gallons of other unclassified spirits. 

TABLE 69.-Rectified spirits and wines: Alcoholic liquors I used in rectification, by 

kinds and by months, fiscal year 1940 

[Proof gallons] 

Month Alcohol Whisky High-proof 

spirits 2 

Wine Miscallsnexus Total 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

1, 285, 046 

1, 299,644 

1, 442, 235 

1, 717, 551 

1, 773, 719 

1, 392, 737 

1, 050, 926 

1,196, 854 

1, 504, 973 

1,663, 121 

1, 300, 963 

I, 848,189 

780, 812 

938,359 

1, 340, 959 

1, 831, 021 

2, 320, 026 

1, 381, 656 

915, 564 

1, 085, 389 

1,112,689 

1, 075, 211 

1, 051, 577 

1, 482, 250 

796, 390 

848,257 

1, 259, 660 

1, 742, 568 

2,175, 415 

1,015, 987 

544, 007 

910, 565 

934, 585 

963, 561 

1, 026, 195 

1, 683, 939 

9, 510 

13, 396 

12, 749 

22, 581 

28, 793 

28, 930 

21, 749 

15, 868 

17, 465 

20, 009 

18, 106 

19, 923 

29, 877 

52,567 

48,016 

81, 114 

94, 343 

87, 429 

52, 906 

52, 568 

48, 701 

44, 738 

38,633 

48, 817 

2, 881, 635 

3, 152, 223 

4,103, 619 

5, 394, 835 

6, 392, 296 

3, 936, 739 

2, 585, 152 

3, 261, 244 

3, 618, 413 

3, 766, 640 

3, 435, 474 

5, 083,118 

17, 475, 958 15, 295, 513 13, 901, 129 229, 079 5679, 709 47, 581, 383, 

1 Includes imported as well as domestic liquors. 

2 Represents high-proof spirt s produced at distilleries. 

Includes 321,911 proof gallons of brandy, 135,690 proof gallons of rum, 127,276 proof gallons of gin, 56,947 

proof gallons of cordials and liqueurs, 12,104 proof gallons of vermouth, and 25,781 proof gallons of other unclassified spirits. 

State Alcohol Whisky High-proof spirits 2 Wine Miscellaneous Total 

Arkansas 5,848 24 6,872 

California 1, 076, 955 163, 789 12, 598 57, 495 1,310,837 

Colorado 3.056 3. 056 

Connecticut 521, 215 156, 397 11, 336 1, 580 19, 919 710, 447 

Hawaii 375 295 468 2, 572 3, 710 

Illinois 1, 086, 458 757, 670 I, 099,203 81, 952 143, 558 3,168, 839 

Indiana 642, 639 2, 366, 703 5, 270, 206 13, 084 49, 019 8, 341, 651 

Kentucky 231, 469 2, 716, 142 1, 127. 189 1, 729 4, 425 1, 080, 954 

Louisiana 203, 241 4,108 110 1, 745 209, 204 

Maine 21, 604 1,147 22, 751 

Maryland 1, 037, 131 4, 437.684 4, 707, 892 6, 713 22. 367 10, 211, 787 

Massachusetts 1, 685, 747 401,490 42,330 54,806 2, 184, 373 

Michigan 145, 795 14, 562 4,833 39,530 204,720 

Minnesota 66,493 5,312 463 897 44,651 117,816 

Missouri 162, 371 8,538 49 2. 421 10, 774 182,153 

New Jersey 3, 500, 824 519.246 549 6, 291 33,044 4,059, 954 

New Mexico 1, 199 325 2, 733 342 4, 599 

New York 881, 259 318, 506 3, 966 16, 859 83, 922 1, 244, 512 

Ohio 1, 652, 415 570, 960 346 10, 244 23,169 2. 257, 134 

Oregon 208 18 17 243 

Pennsylvania 4, 462, 067 2, 834, 661 1, 679. 635 22, 487 102, 788 9,101, 638 

Rhode Island 17, 340 6, 955 76 24, 371 

Tennessee 1, 642 76 595 2, 313 

Vermont I, 335 654 7 35 2, 031 

Washington 35,263 8.239 66 26 43,594 

Wisconsin 32,009 4,349 1,583 4,888 42,829 

Total 17, 475.958 15, 295, 513 13, 901, 129 229,079 3 679, 709 47, 581, 388 

1Includes imported as well as domestic liquors. 

2Represents high -proof spiri s produced at distilleries. 

Includes 321,911 proof gallons of brandy, 135,690 proof gallons of rum, 127,276 proof gallons of gin, 56,947 

proof gallons of cordials and liqueurs, 12,104 proof gallons of vermouth, and 25,781 proof gallons of other 

unclassified spirits. 

TABLE 71.-Fermented malt liquors: Production and tax-paid withdrawals, by 

months, fiscal year 1940 

[Barrels of 31 gallon ] 

Month Production 

Tax-paid withdrawals 

Total in barrels 

and kegs 

By pipe line 

for bottling 

July 

August 

5, 641, 326 

5, 458,477 

5, 538, 668 

5, 718, 641 

2, 808, 837 

2, 843, 335 

2,729, 831 

2,875, 3013 

September 4, 395, 461 4,922, 997 2,474,851 2,448, 146 

October 4,237, 570 4, 169. 153 2,115,990 2, 053,163 

November 3, 692, 728 3, 826, 964 1, 944, 131 1, 882, 833 

December 3, 611, 695 3.933, 519 1, 994, 862 1, 938,657 

January 3, 788, 276 2, 928, 330 1, 440, 558 1, 487, 772 

February 3,477, 429 3, 238, 193 1, 621, 088 1, 617,105 

March 4, 384, 648 3, 811, 295 1, 847, 533 1, 983, 782 

April 5, 124,256 4,180, 697 1, 998, 831 2,187, 866 May 5, 484, 811 4, 883, 602 2, 308, 703 2, 576, 899 

June 5, 597,062 5, 858.171 2, 613, 446 3, 242, 725 

Total 54, 891, 737 53,014, 230 26,010,106 27, 004,085 
162 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 72.-Fermented malt liquors: Breweries operated, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1940 

[Quantities in barrels of 31 gallons] 

State 

Number °f brewcries 

operated 1 

Production 

Withdrawals 

Losses On hand 

June 30 

Tax-paid Tax-free I 

Alaska 

el..W.F.CNO.SCaNI■ Mcc4 .-im ,-“-lopMC gM ..MWM ai nM gM M C ,-1 m.. .-1 CD C 

1,330 1,444 105 380 96 

Arizona 26,427 27, 136 157 1,072 4, 716 

California 2, 687, 680 2, 548, 649 10,876 77,205 361, 175 

Colorado 258, 992 253,987 1,811 5,703 66,558 

Connecticut 417, 967 400, 060 3,808 24, 813 57, 118 

Delaware 49, 362 50,019 581 1, 764 6, 076 

District of Columbia 89,665 88,467 888 3,345 19,844 

Florida 218, 417 212, 506 1, 485 7,653 40,155 

Georgia 66,552 63,175 370 2,158 16,030 

Hawaii 81,994 79,079 915 1, 521 15, 371 

Idho 3,638 34, 978 574 1 993 , 7, 830 

El

a

inois 3, 747, 516 3,656,689 32,445 123,139 588, 

Indiana 1,699,364 1,667, 696 7,679 46,486 294,219 

Iowa 136, 575 136, 748 765 4, 927 25, 694 

Kentucky 811,163 775, 912 5, 943 21, 396 122,102 

Louisiana 909, 818 883, 316 5, 989 39 435 80,356 

Maryland 1, 295, 609 1,265,323 7, 784 36, 383 164, 006 

Massachusetts 1, 287, 934 1, 217, 571 11,190 76,288 170, 888 

Michigan 2, 739, 981 2, 669, 393 12, 670 87, 837 465959 

Minnesota 2, MO, 240 2, 512, 190 58, 633 97,445 845,025 

Missouri 4, 302, 715 4,086, 357 30,013 157, 235 751,087 

Montana 191, 269 189. 175 1,556 4,037 31, 252 

Nebraska 338, 796 329, 536 2,106 11, 997 59, 503 

Nevada 16.906 16, 981 93 279 3, 805 

New Hampshire 39,037 35, 782 328 2, 211 6,139 

New Jersey 3, 452, 623 3, 391, 285 18, 745 145, 380 487, 380 

New Mexico 801 

New York 4867, 803 8, 547, 827 97, 313 294, 203 1, 532, 059 

North Carolina 101,061 95,715 152 4,471 18, 103 

Ohio 3, 712, 656 3, 595,129 25, 276 111,328 646,978 

Oklahoma 76, 466 77, 706 669 4, 665 13,281 

Oregon 129,987 113,823 946 3,630 35,144 

Pennsylvania 6, 195,236 5,934,996 39,874 227,006 920,229 

Rhode Island 847,187 603, 396 3, 736 40, 904 94,945 

South Dakota 2.562 2,826 57 95 488 

Tennessee 139,291 124, 950 1, 798 5,900 28, 759 

Texas 805,134 770,320 4,474 29,833 162.452 

Utah 124,173 118,308 632 6.834 21,317 

Virginia 123, 451 115,348 1,073 3,431 25,753 

Washington 759,383 749,697 3,869 19,708 169,445 

West Virginia 34,144 32,842 780 1, 395 4,660 

Wisconsin 5, 701, 887 5, 530, 144 52,053 179,156 1, 154, 288 

Wyoming 57, 046 57, 851 475 2, 950 11, 516 

Total 611 54,891, 737 53, 019, 230 399,186 1,911, 340 9, 019,354 

Number operated during any part of the year. 

s Including amounts consumed on brewery premises. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 163 

TABLE 73.-Fermented malt liquors: Withdrawals, tax-paid and tax-free, by States, 

fiscal year 1940 

[Barrels of 31 gallons] 

State 

Tax-paid withdrawals Tax-free withdrawals 

Total withdrawals In barrels 

and kegs 

By pipe line 

for bottling 

Consumed 

on premises 

For cereal 

beverages For export 

Alaska 1, 444 106 1,549 

Arizona 5, 518 21, 618 167 27, 293 

California 367,139 2,181,510 9,196 323 1,357 Z 559, 626 

Colorado 107,072 146,915 1,811 255,798 

Connecticut 238, 562 161, 498 % 808 903,388 

Delaware 30,016 20,003 581 50,600 

District of Columbia 18,975 69,992 888 89,365 

Florida 20,497 192,009 1,485 213,991 

Georgia 7,947 55,228 370 63,545 

Hawaii 11, 721 67, 358 915 79, 494 

Idaho 18, 242 18, 736 574 35.552 

Illinois 1, 661, 967 1,994, 722 22, 213 10, 232 3,689. 134 

Indiana 362 350 1, 306, 348 7, 679 1,675, 375 

Iowa 61,600 85,148 766 137, 518 

Kentucky 239,086 536,826 3,990 1,453 781,355 

Louisiana 88,027 795, 289 9, 632 857 388, 805 

Maryland 558,283 707,040 7, 551 233 1, 27$107 

Massachusetts 828, 334 389, 237 11, 190 1, 228, 761 

Michigan 1,001,646 1, 667, 747 12 670 2, 682083 

Minnesota 1,371,643 1,140, 547 10,100 48, 533 2, 570, 823 

Missouri 1,831, 876 2 454, 481 19, 330 4, 584 8,099 4,118, 370 

Montana 125, 408 63, 787 1, 556 190, 731 

Nebraska 93,002 236, 474 $106 331, 642 

Nevada 12,606 4,975 93 17,074 

New Hamsphire 22, 836 12, 946 328 34110 

New Jersey 1,951, 376 1,389,910 15,715 3,030 8, aeo, oao 

New York 4 995, 274 Z 552, 553 45,893 1,420 8, 595,140 

North Carolina 3, 212 92, 503 152 95,887 

Ohio 1, 561, 415 2,033, 719 19, 458 5, 818 3, 620, 905 

Oklahoma 10, 278 67, 430 869 74 375 

Oregon 56. 227 57, 596 946 114, 769 

Pennsylvania 3, 338.480 Z 598, 516 39, 302 253 319 5,974, 870 

Rhode Island 418, 419 184, 977 3, 736 607,132 

South Dakota_ 1, 668 1,158 57 Z 883 

Tennessee 11,375 113,575 1, 798 126,798 

Texas 83,305 837,015 4,974 774,794 

Utah 43,744 69,562 632 118,938 

Virginia 4,886 110,483 1,073 116,421 

Washington 365,513 384,084 3,869 753,968 

West Virginia 1, 911 30, 931 780 33, 622 

Wisconsin 3, 259,744 2, 270, 400 24,127 3,973 23, 953 5, 582,197 

Wyoming 24085 32,786 475 5%326 

Total 28,010, 185 27,094,066 286,749 64,937 47,500 53,413,918 
164 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 74.-Fermented malt liquors: Materials used in production, by kinds and by 

States, fiscal year 1940 

Grain and grain products t 

Sugar and 

scups 

Hops and 

Rate hop extract 

Malt Corn Rice 

Pounds Pounds Pounds Pounds Pounds 

Alaska 58,596 8,500 5,200 1,117 

Arizona 958,937 248, 59 1,210 11,637 

295 California 93, 408,191 14,034,387 14,103, 487 4, 566,696 1, 528, 

Colorado 9,335,930 707, 514 2,218, 800 20,396 150,168 

Connecticut 15,420, 538 3,968,042 84,000 2,518,161 328,067 

Delaware 1,946,309 617,640 46,080 2,722 32,751 

District of Columbia 3,033,100 1,455, 503 67,500 41,960 

Florida 7,708,882 744,300 1,801,144 599,247 19,134 

Georgia 2, 179,875 782,300 379,600 43,841 

Hawaii 1,884,932 195, 500 9, 536,309 236,377 24,040 

Idaho 1,399,558 205,297 198,882 5,655 21,742 

753 

Illinois 

Indiana 

Iowa 

120,672,833 

62,190,299 

4,538,418 

40,852,045 

14, 638,600 

1,829,340 

11,936,345 

673,000 

5, 824, 93 

4,6 16,688 

"I 22,840 

1,959, 

90, 106 3

79,144 

Kentucky 27, 817,004 2,921, 620 7, 259, 940 811,555 471,970 

Louisiana 29,595, 478 7,726,400 6,370, 469 454,386 

Maryland 

Massachusetts 

47, 573,628 

51, 729, 876 

8,665, 475 

7, 206, 045 

2,926,194 

1,548,292 

5,996, 726 

11, 882, 866 

797,147 

1, 95,024 

Michigan 98, 749, 555 28, 496, 725 8,043,045 2,363,482 1,486, 651 

Minnesota 89, 461,426 14,779,272 13,890,026 1,435,137 

Missouri 144, 793,331 11, 209,834 51, 676, 249 1,695, 611 2,283,254 

Montana 7, 533, 367 317,420 1,398,900 463,069 102,345 

Nebraska 10,988, 584 2,666,062 1,457, 800 368,568 159,938 

Nevada 

New Hampshire 

582,813 

1, 282,740 

192,100 

254,120 

36,500 200 

537, 210 

9, 220 

31,980 

New Jersey 

New York 

131,49, 619 

329, 492, 533 

32, 458,686 

86,092,043 

1, 131,932 

17,431,453 

14, 579,018 

19,901,940 

2,193,220 

5,399, 517 

North Carolina 3, 381,930 1,152,200 638, 400 59, 598 

Ohio 127, 793, 254 34, 500, 831 10,648,170 7,328,773 2, 128,634 

Oklahoma 2,366, 895 429,900 574,800 2,220 36,870 

Oregon 

Pennsylvania 

4, 725, 595 

227,074, 105 

45, 850 

54, 649,871 

1, 413,100 

10, 721,041 

29,853 

23,258, 520 

77,832 

3,858,826 

Rhode Island 23,417, 396 4, 563,500 1,799,367 5,895,819 591, 265 

South Dakota 116, 294 1, 234 

Tennessee 4,407,680 639,720 1,062,140 326,650 60,887 

Texas 28,261, 830 324,000 10,952,807 606, 327 433,189 

Utah 4, 329,922 446, 190 650,200 67,376 

Virginia 4, 429,279 1,301,930 110,400 177,775 70,948 

Washington 27,976,363 1, 789,382 6, 530,927 582,132 430,79 

West Virginia 1, 268, 570 406,544 2,699 19,807 

Wisconsin 200,961, 604 66,326,915 6, 596, 721 8, 276, 619 2,739,452 

Wyoming 2,088,656 433,315 188,750 29,855 34,951 

TotaL 1,958.419, 675 441, 101, 545 188,943,875 144,877,697 31, 926,866 

1 In addition, 3,987 pounds of rye and 3,535,908 pounds of wheat and wheat flakes. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE. 165 

TABLE 75.-Cereal beverages:I Plants operated, production, and withdrawals, by 

States, fiscal year 1940 

[Quantities in gallons 2 ] 

State 

Number of 

plants 

operated 3 

Production Withdrawals 

On hand 

June 30 

California 

N... ..~

I , 

10, 017 10, 017 

Kentucky 29, 977 30, 504 3,100 

Minnesota 1, 167, 925 1, 131, 570 56, 606 

Missouri 114, 762 121, 613 15, 310 

Ohio 149, 017 140, 515 5, 580 

Pennsylvania 3,038 1,550 

Wisconsin 98,394 88,567 11,718 

Total 17 1, 573,130 1, 524, 336 92, 314 

1Containing less than one-half of 1 percent of alcohol by volume. 

'Standard United States gallons of 231 cubic inches. 

3 Number operated during any part of the year. 

TABLE 76.-Still wine: Production and withdrawals, by months, fiscal year 1940 

[Wine gallons i] 

Month Tax-free 

withdrawals , 

Tax-paid Withdrawals 

Production 2 

Total 

Not over 

14 percent 

alcohol 

Over 14 

and not 

over 21 

percent 

alcohol 

Over 21 

and not 

over 24 

percent 

alcolfol 

July 

August 

September 

October 

November 

December 

January 

February 

March 

Arr II 

May 

June 

Total 

918, 003 

5, 220, 604 

44, 350, 639 

105, 453, 497 

35,909, 761 

8,133, 062 

2,822, 212 

2, 066,030 

I, 93Z 142 

1, 830, 620 

1, 712, 462 

2, 018, 705 

470, 662 

2, 543, 697 

25, 927,936 

63, 821, 384 

26, 089, 614 

7, 718,048 

2, 747, 275 

1, 775, 538 

1,497, 713 

1, 536,896 

1, 222, 651 

1,114, 874 

4, 242, 830 

5, 053, 337 

6, 208, 901 

8, 011,143 

8,623,177 

9,117, 717 

5, 913, 734 

6, 392, 989 

6,331,570 

6, 070, 519 

5, 781, 859 

10,4%, 810 

1, 442, 246 

1, 677, 078 

1,992, 285 

2, 451, 580 

2, 775,397 

2, 754, 532 

1,812, 561 

2, 056, 248 

I, 983, 575 

2, 016, 417 

1, 731, 786 

1, 979, 310 

2, 796,469 

3, 372, 391 

4, 212, 396 

5, 553, 022 

5, 838, 561 

6, 355, 027 

4, 095, 585 

4, 328,960 

4,340,969 

4, 045, 540 

4, 038, 784 

8, 439, 005 

4,115 

3, 868 

4, 220 

6, 541 

9, 219 

8,158 

5, 588 

7, 781 

7,026 

8, 562 

11,589 

10,495 

212, 367, 737 136, 466, 288 82,176, 586 24, 673, 015 57, 416, 709 88,862 

Standard United State gallons of 231 cubic inches. 

2 Production represents the amount removed from fermenters, including wine to be used as distilling material in the production of brandy. Increases by amelioration and fortification occurring after removal from 

fermenters are shown in table 79. 

Includes: 135,134,639 gallons removed for use as distilling material, of which 122,323,519 gallons were 

"substandard" wine (i. e., produced with excessive water or residue materials); 503,416 gallons removed for 

the manufacture of chat/mar/Bey artificially carbonated wine; 856429 gallonaremoved for the manufacture of vermouth; 168,549 gallons -removed for the manufacture of vinegar; 158,78A gallons removed for export; 

44,132 gallons removed for family use; and 638 gallons removed for the use of United States. 
166 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 77.-Still wine: Bonded wineries and bonded storerooms operated, production, 

withdrawals, losses, and stocks on hand June 30, by States, fiscal year 1940 

[Quantities In w ne gallons] 

State 

Number of pramLees operated 1 

Production! 

Withdrawals 

Losses On hand 

June 30 

Bonded 

wineries 

Bonded 

storerooms 

only 

Tax-free Tax-paid 

Alabama 

Arkansas 

California 

Colorado 

Connecticut 

Florida 

Georgia 

Hawaii. 

Idaho 

Illinois 

Iowa 

Kentucky 

Louisiana 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri 

Nevada 

New Jersey 

New Mexico 

New York 

North Carolina 

Ohio 

Oregon 

Pennsylvania 

Rhode Island 

South Carolina 

Tennessee 

Texas 

Virginia 

Washington 

West Virghiut. 

Wisconsin 

Total 

8 

47 

2 

1 

1 

4 

11 

1 

14 

30 

12 

10 

35 

4 

1 

3 

1 

3 

" 

1-1 1-1e1 

I -- ----- en tm-eaceena..a ■.MCLO 

4,927 

360, 843 

199, 582, 378 

34,231 

534, 503 

10, 347 

. 21,088 

15,046 

78, 463 

1, 599,171 

25, 884 

633,458 

7, 699 

4, 520, 839 

126,108 

2,128, 008 

268, 546 

11,668 

3,429 

14,333 

137, 727 

1,890, 603 

3, 300 

55,084 

557 

750 

274, 701 

22, 750 

556 

675 

190 

40, 207 

134,202, 679 

6,191 

261 

152, 624 

1, 780 

1,089 

135 

2,700 

1, 814 

10, 941 

30, 940 

310, 131 

296 

520, 783 

877 

183, 948 

146,876 

49 

21 

201 

22,472 

827,483 

8.720 

1,935 

301, 738 

44, 415, 000 

453,446 

527, 574 

43,697 

346, 027 

14,358 

571 

4, 559, 298 

88,835 

566 

753, 546 

304, 985 

1, 669, 668 

1, 208, 361 

25, 796 

52, 217 

39,395 

3,939, 228 

23, 862 

16, 409, 294 

377,418 

2,138, 709 

205, 727 

1, 714, 904 

48, 038 

4,625 

16,322 

1, 112, 751 

1, 104, 507 

75,222 

260,976 

90 

36 

29.802 

3, 041,132 

9, 159 

10,941 

14,903 

9, 761 

240 

147 

37, 547 

2, 083 

42 

16,188 

3,015 

22,907 

114,155 

1, 018 

5, 415 

1,035 

81, 922 

950 

493, 888 

3, 338 

139,127 

27, 813 

14,182 

2,546 

19,327 

71,747 

71,747 

2135 

2, 225 

11, 534 

3, 498 

281, 747 

77, 231,247 

79,033 

43,962 

68,306 

115, 403 

8, 810 

1, 209 

495,314 

24,263 

1, 146 

83, 116 

70,124 

64,364 

1, 595, 225 

40,121 

118, 850 

18, 743 

1, 134, 156 

11, 846 

7,159, 672 

191,315 

2, 759, 508 

299, 760 

228,867 

2,371 

2, 175 

15,671 

940,399 

940,359 

8,192 

38.192 

1.090 98 212,367, 737 8 136, 466,288 82, 176, 5813 5,112, 181 93,244, 603 

Number operated during any part of the year. 

1 Production represents the amount removed from fermenters, including wine to be used as distilling 

material in the product on of brandy. Increases by amelioration and fortification occurring after removal 

from fermenters are shown in table 79. 

See footnote 3 of table 76. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 167 

TABLE 78.-Still wine: Tax-paid withdrawals and stocks on hand June 30, by 

alcoholic grades and by States, fiscal year 1940 

[Wale gallons] 

State 

Tax-paid withdrawals On hand June 30 

 over 

14 percent 

alcohol 

Overr 14 

and not 

over 21 

percent 

alcohol 

Over 21 

and not 

over 24 

percent 

alcohol 

Not over 

14 percent 

alcohol 

Over 14 

and not 

over 21 

percent 

alcohol 

Over 21 

and not 

over 29 

percent 

alcohol 

Alabama 1,935 1,043 2, 455 

Arkansas 94, 350 200, 829 56, 559 195, 229 61, 820 24,698 

California 10, 840, 128 33, 558, 379 16,493 28, 483, 628 47, 050, 616 1, 697, 003 

Colorado 76,860 376,586 38,912 90,121 

Connecticut 153, D40 374, 534 11, 718 31, 947 297 

Florida 36, 639 6,958 67,222 1,084 

Georgia 282,904 63, 123 82,640 32,763 

Hawaii 14, 358 4, 417 9, 393 

Idaho 80 491 509 700 

Illinois 1, 246, 727 3, 312, 571 208,187 287,127 

Iowa 2, 782 84, 053 4, 533 19, 730 

Kentucky 566 1,146 

Louisiana 464,606 288,940 28,580 54,536 

Maryland 140,826 164,159 52,666 17, 458 

Massachusetts 304,337 1, 385, 331 28,986 35,378 

Michigan 108,428 1,099,933 926, 495 668,730 

Minnesota 3,897 21, 899 6,060 34,061 

Missouri 26, 446 25, 771 99, 631 19, 219 

Nevada 26,866 12,529 9,527 9,216 

New Jersey 1, 545, 218 2,392, 806 1, 204 719,686 408, 334 11, 136 

New Mexico 10,602 13,260 7,657 4,189 

New York 6, 935,152 9, 471, 977 2,165 3, 232, 660 3, 748, 730 178, 282 

North Carolina 48,070 329,348 188, 005 3, 310 

Ohio 976,318 1, 162, 391 2, 121, 331 638,177 

Oregon 120, 501 85,226 150, 537 149, 223 

Pennsylvania 419,605 1, 295, 299 93,633 135, 234 

Rhode Island 28,127 19, 911 

South Carolina 2,657 1,968 1,301 1,070 

Tennessee 90 2, 175 

Texas 13, 239 3, 083 11,910 3, 761 

Virginia 206,452 895,858 10, 441 35, 889 68,284 2,220 

-Washington 545,887 658,620 224,911 712,726 2,682 

-West Virginia 11, 204 64, 018 2, 969 6, 908 

Wisconsin 48, 476 152, 500 25, 515 12, 677 

Total 24, 673,015 57, 916, 709 86,862 37, 054, 308 54, 263, 977 1,916, 318 

TABLE 79.-Still wine: Ameliora ion and fortification occurring after fermentation, 

by States, fiscal year 1940 

[Wine gallons] 

State Wine ameliorated 

Resulting 

product 

Wine fort!. 

fled 

Resulting 

product 

Alabama 1.308 1,401 

Arkansas 442,592 512,641 273,829 312,812 

California 6,516, 849 7, 588, 812 50, 470, 931 59, 340,168 

Colorado 58,162 62,890 6,370 7,316 

Florida 32,500 33.312 

Georgia 519,293 663,590 3.058 3,816 

Hawaii O 704 7,126 13, aso 14, 773 

Illinois 3,600 3, 812 

Maryland 80, 499 87, 896 2,603 3, 253 

Michigan 1, 475,124 1, 645, 224 726,468 778, 286 

Missouri 28,622 34,071 7,626 8,077 

New Jersey 377, 694 397, 745 190,020 251,047 

WewAKWaoo 141 150 

New York 3,253,404 3,597,307 1,018, 968 1,133, 806 

North Carolina 29, 421 31, 957 

Ohio 815, 690 876, 354 561, 235 631, 551 

Oregon 98,255 106,508 5,414 6,745 

Pennsylvania 150 156 

South Carolina 2, 585 2, 663 

Texas 13, 353 13, 837 

Virginia 93,418 98,523 102,179 135,577 

-Washington 947,519 1,004, 391 406, 816 476,946 

Wisconsin 2, 217 2,380 

Total 14, 823,100 16, 652, 740 53, 788, 977 163, 103, 862 

I In producing fortified wine a total of 17,789,697 proof gallons of brandy were used. 
168 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 80.-Still wine: Materials used in production,' by kinds and by States, 

fiscal year 1940 

Kind Arkansas California New Jersey New York 

A. Fruits, berries, etc. (pounds): 

Pears Prunes Grapefruit 

Oranges Currants Plums 1, 545 

Elderberries 2, 860 

Youngbrie 23, 179 

Raspberries 

B.Juices. including concentrates (gallons): 

Currant Peach 

Other 

Grapes 2, 960, 581 1, 395, 894, 319 973,553 9, 594,890 

Raisins 32, 593, 534 28, 900 8, 350 

Blackberries 96, 719 285, 844 837, 139 5, 292,347 

Apple 13, 887 7, 440 4,250 

Loganberries 17, 250 

Cherries 40,933 29, 050 168,203 

Peaches 16, 700 59,925 42, 724 

Apricot er 27, 650 

Other 11,491 3,140 597 44,628 

Grape 18, 170 76, 732 3, 231 1, 103, 988 

Apple 130,628 301,879 37,926 

Blackberry IL 600 165,230 

Cherry 9,350 

Loganberry 11, 250 

30 048 

37 

Kind Ohio Oregon Washing- All other Total ton States 1 

A.Fruits, berries, etc. (pounds): 

Apricots 

B. Juices, including concentrates (gal- lons): 

144, 

Grapes 9, 622, 153 416,007 7, 811, 159 3 17, 312, 640 I, 444, 585, 302 

Raisins +465,250 33,096,039 

Blackberries 789, 407 134, 019 596, 075 5 2, 269,130 10,300,6811 

Apples 703, 337 403, 935 3, 088, 984 120, 011 4, 341, 844 

Loganberries 225,598 1,051,628 11,925 1,306,401 

Cherries 39,070 298,165 209, 383 923, 873 

Pears 609, 570 207,052 250 816,87: 

Prunes 460,091 960,091 

Grapefruit 3 426, 384 426,384 

Peaches 2,500 299,373 411,22: 

Oranges 379, 384 379, 38, 

Currants 21,937 208,960 67, 334 298, 231 

Plums ' 703 1, 645 247, 891 

Elderberries 6, 290 45, 155 4,067 72,40: Youngberries 

Raspberries 

 

580 126 1, 875 32,621 

Other 7, 385 14, 990 37, 166 8, 339 127, 731 

Grape 615, 371 91, 896 29, 312 1,938, 70 

Apple 80, 381 28, 810 920, 518 7 140, 673 1, 640, 81 

Blackberry 23,956 564 401 24,330 226,08 

Currant L 500 5% 950 61,45 

Peach 49, 249 49,24 

Cherry 12,127 413 2,000 2317, 89 

Loganberry 4,728 1, 307 . 28 

One 2,902 438 7, 221 10,59 

260 76,434 . 8.5,8A 

50, 50( 

Exclusive of sugar and other sweetening material. Represents fermenting material erushed or presse s, 

and deposited in tormenters for the production of wine, including wine used in the production of brandy. 

2 

 States in which more than 250,000 pounds or 100,000 gallons of a given material were used, are footnoted. 

I Includes 259,386 pounds used in Maryland, 14,936,987 pounds in Michigan, 282,776 pounds in Missouri, 

and 609,005 pounds in North Carolina. 

Includes 441,000 pounds used in Louisiana. 

Includes 1,444,858 pounds used in Georgia and 272,205 pounds In Maryland. 

Used in Florida. 

Includes 104,565 gallons used in Virginia. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 169 

TABLE 81.-Sparkling wine: 1Production and tax-paid withdrawals, by months, 

fiscal year 1940 

[Number of half-pint units a] 

Month Production 

Tax-paid withdrawals 

Total In half 

pints In pints In quarts In other 

sizes 

July 387,098 402,937 96,089 127,004 175,028 4, 836 

August 328,062 423,854 93, 647 67, 882 257,508 4,817 

September 412, 698. 684, 488 123,388 110,792 445, 524 4,779 

October 538,798 1,009, 596 158, 762 152, 216 688, 804 9,819 

November 755,196 1, 166, 718 186, 884 160,320 803,780 15, 734 

December 959, 471 2,025, 752 301, 235 272,824 1, 431, 512 20, 181 

January 622, 181 497, 394 7Z 604 92, 290 329, 152 3, 348 

February 35%653 286, 684 66, 809 40,806 174, 648 4,421 

March 922, 345 342, 735 72, 340 51,052 211, 708 7, 635 

April 

May 

889, 705 

1, 800, 958 

369, 511 

483, 50 1 

82, 595 

93, 919 

72, 398 

89, 862 

204, 416 

298,608 

5,102 

6, 612 

June 1, 665, 126 688, 425 159,888 94, 472 425, 244 8, 841 

Total 9, 634, 791 8, 376, 590 1,507, 620 1, 326, 918 5, 445, 932 96,120 

Includes champagne, other sparkling Woe, and artifically carbonated wine. 

Reported figures have been converted to one-half pin units. Data on sparkling wine are reported to the 

Bureau in bottles and other containers of varying sizes, according to the number of taxable units contained. 

The tax is payable "on each one-half pint or fraction th reof" of "each bottle or other container," except in 

the ease of artificially carbonated wine. From the passage of the Liquor Tax Administration Act of June 26, 

1936, through June 30, 1940, the tax on artifically carbonated wine was payable "on each one-pint or fraction 

thereof" of "each bottle or other container." 

3 Represents 35,808 half-pint units in three-fourths quarts; and 00,312 half-pint units in magnums. 

T kBLE 82 -Sparkling wine: 1Number of producers, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1940 

[Quantities in half pint units 2 ) 

Number of 

operating 2 Tax-paid Other 

Withdrawals 

State producers Production Losses On hand 

June 30 

Georgia 

 234,978 242,394 

I-I .4 Cq 

I 

Arkansas 10, 503 8,472 67 2,252 

California 2, 393, 549 1, 753, 656 98, 455 170, 283 3, 245, 432 

Florida 5, 512 2,888 

Illinois 84, 732 138 36, 766 

Massachusetts 1,126 178 3,528 

Michigan 198, 337 157, 404 5, 819 54, 428 

Missouri 592, 600 714, 208 201, 417 75. 209 1, 710,111 

New Jersey 1, 848, 816 1, 697, 592 130, 851 15, 739 832,602 

New York 3, 975, 161 3, 390, 462 9,019 171, 872 6, 296, 591 

Ohio 327,062 267,318 51,440 1,0 13, 877 

Oregon 1,070 

Pennsylvania 168 1,980 798 1,032 

Rhode Island 6, 560 7, 306 1, 764 

Washington 2,057 1,392 2,912 401 3,352 

Wisconsin 51,728 45,594 _ 710 6,460 

Total i 118 9, 634, 791 8, 376, 590 b 446,940 497, 286 13, 207, 501 

Includes artificially carbonated wine as follows: Production. 1,453,629; tax-paid withdrawals, 1,487,407; 

other withdrawals, 39,263; losses, 16,136; and on hand June 30, 282,936 half-pint units. 

See footnote 2 of table 81. 

Number operated during any part of the year. 

In addition, 6 bonded storerooms in California, 1 in New Jersey, 2 in New York, and 1 in Pennsylvania. 

2 All converted into still wine with the exception of 3,880 half-pint units removed for export in California, 

Missouri, and New York, and 48 half-pint units removed for use of United States. 

269679-40-12 
Arkansas 

California 

Florida 

Georgia 

Illinois 

Massachusetts 

Michigan 

Missouri . 

New Jersey 

New York 

Ohio 

Oregon 

Pennsylvania 

Rhode Island 

Washington 

Wisconsin 

Total 

2,496 

1,390, 468 

5, 500 

67,960 

880 

70,840 

500,112 

770, 288 

2, 371, 136 

210, 528 

p42 

64, 440 

960 

3,824 

11,953 

57,584 

55,139 

7,535 

July 

August 

September 

October 

November 

December 

January 

February 

March 

April 

May 

June 

Total 

170 REPORT OF COMMISSIDONER OF INTERNAL REVENUE 

TABLE 83.-Sparkling wine: 1 Tax-paid withdrawals and stocks on hand June 30, 

by size of container and by States, fiscal year 1940 

[Number of half-pint units 

On hand June 30 

State 

In quarts 

5,281 

282, 260 

12 

220,008 

16, 532 

246 

20,708 

123,436 

103, 940 

526, 378 

45, 424 

144 

6, 488 

466, 960 

1 Includes artificially carbonated wine as follows: Tax-paid wihdrawals-in half pints, 344,914; in pints, 

394,410; in quarts, 694,620; and n other sizes, 53,463 half pint units stocks on hand June 30-in half pints, 25,495; 

in pints,91, 682; in quarts, 151,848; and in other sizes, 13,911 half-pint units. 

See footnote 2 of table 81. 

8 Represents 35,808 half-pin units in three-fourths quarts and 60,312 half-pint units in magnums. 

4 Represents 18,861 half-pin units in three-fourths quarts; 48,008 half-pint units in magnums; 52 half-pint 

units in maximums; and 39 half-pint units in jeroboams. 

TABLE 84.-Vermouth: I Production and tax-paid withdrawals, by months, fiscal 

year 1940 

[Wine gallons] 

Tax-paid withdrawals 

Production 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 171 

TABLE 85.-Vermouth: I Number of premises operated, production, withdrawals, 

losses, and stocks on hand June 30, by States, fiscal year 1940 

[Quantities in wine gallons] 

State 

Number of 

premises 

operated 1 

Production 

Withdrawals 

Losses On hand 

June 30 

Tax-paid For export 

California 

*1.11C".": 71. 

156,181 76,840 845 5,484 71,189 

Connecticut 970 18 293 

Illinois 636 6,936 101 2,269 

Maryland 386 10D 

Massachusetts 1,778 4,167 198 880 

New Jersey 81, 937 94,185 407 1, 287 15, 485 

New York 237, 978 209, 037 987 7, 313 84, 465 

Ohio 564 1,703 177 1,688 

Virginia 15 227 

Total 126 479,074 394, 245 2,239 14, 578 176,576 

I For production of vermouth at rectifying plants, see table X. 

Number operated during any part of the year. 

TABLE 86.-Enforcement, Alcohol Tax Unit: I Seizures and persons arrested, by 

months, fiscal year 1940 

Month 

Seizures 

Persons 

arrested 

Stills Distilled 

spirits Mash Automobiles Trucks 

Property 

(appraised 

value) 

Gallons Gallons 

Augusust 

859 

983 

19,867 

23, 210 

449,004 

559, 061 

342 

335 

32 

37 

$138,700 

174, 421 

2, 157 

2, 279 

September 872 23, 548 667, 358 347 43 165, 132 2, 205 

October 898 22,338 528, 059 362 28 177, 597 2, 205 

November 885 28, 354 537,465 350 . 41 192, 838 2,087 

December 978 21, 755 694,727 304 44 185, 880 2, 110 

January 719 17, 019 423,361 267 26 161, 997 1, 889 

February 786 22, 607 542, 718 371 32 173, 505 2, 069 

March 924 22, 856 490, 926 339 47 167, 199 2, 288 

April 864 19, 309 452,554 317 42 144, 940 2,038 

May 984 30, 455 646 136 363 43 189, 032 2, 259 

June 911 21, 278 488, 872 368 44 171,610 2, 072 

Total 10, 663 264, 594 6, 480,240 4,065 458 2, 042, 851 25, 638 

69, 795 

22,386 

240 

65,8156 

81, 028 

796, 620 

465, 618 

5, 381 

1,507,620 

In half 

pints 

696 

Tax-paid withdrawals 

In pints 

24 

72 

96 

2, 502 

1, 326,918 5, 445, 932 

43,092 

In other 

sizes 

396,120 

31, 133 

3,632 

26,744 

27, 330 

5,985 

1,296 

120 

In half 

pints 

202,097 

In pints 

1,030 

713,892 

10, 494 

840 

9, 768 

238, 578 

214, 122 

1, 220, 302 

294, 628 

788 

336 

1,462 

2, 706, 240 

In quarts 

576 

6,460 

10, 232, 204 

680 

2, 447, 380 

25,312 

2,688 

40,836 

I, 440,180 

548,880 

5, 018, 192 

701, 020 

In other 

sizes 

19, 720 

19,400 

12, 016 

2,958 

10, 694 

282 

1, 890 

Month 

Total 

Not over 

14 percent 

alcohol 

479, 074 

22,077 

13,019 

35, 449 

66,806 

32, 616 

28,942 

54, 785 

37, 595 

45,012 

50, 408 

24, 026 

68, 339 

394, 245 

13,312 

16,111 

22,858 

38, 233 

39, 921 

51,105 

24, 468 

25,878 

33, 718 

30,311 

29, 595 

64, 735 

178 392, 544 

13, 312 

16,111 

22, 580 

38.030 

39,766 

50, 838 

28,333 

25, 569 

33, 710 

30, 259 

29, 476 

64, 562 

I Includes seizures and arrests in cases adopted as well as eases originated by the Alcohol Tax Unit. 

' Not including stills set ed at cleaning and cracking plants. 

3 Nat including 2,014gallons of denatured alcohol seized at cleaning and cracking plants. 

1, 523 

89 

44 

50 

278 

203 

155 

269 

135 

225 

8 

I For production of vermouth at rectifying plants, see table 67. 
172 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 87.-Enforcement, Alcohol Tax Unit: 1Seizures and persons arrested, by 

States, fiscal year 1940 

State 

Seizures 

Persons 

arrested 

Stills Distilled 

spirits Mash Wine Automobiles Trucks 

Property 

(appraised 

alue) 

Gallons Gallons Gallons 2 .-"CNg". mt,ON ''' 44 ?4 ,2i a- -- 

Alabama 1, 227 20, 590 426, 625 406 $146, 920 2, 316 

Arizona 3 28 180 55 1 449 13 

Arkansas 205 2,097 78,815 1 61 41,676 .416 

California 100 2, 628 40, 702 30, 070 17 7, 482 221 

Colorado 6 25 360 1 366 17 

Connecticut 25 1, 800 17, 195 62 30 12, 907 98 

Delaware 17 73 1, 855 10 460 46 

District of Columbia _ 3 725 750 15 1, 365 48 

Florida 527 14,807 346,534 181 273 146,674 1, 260 

Georgia 1, 501 40, 739 1, 002, 750 343 204, 674 2, 912 

Hawaii 3 87 602 29 1 321 103 

Idaho 4 109 11 

Illinois 99 11,384 256,014 3 72 69,313 357 

Indiana 85 3,593 54, 922 ss 25,286 251 

Iowa 3 714 350 51 28 4,993 103 

Kansas 10 910 1, 910 151 73 28, 342 123 

Kentucky 596 10, 260 145, 709 159 61, 157 1, 555 

Louisiana 66 75 1,799 535 3 2,811 115 

Maine 1 286 25 250 3 1,860 139 

Maryland 202 4, 167 89, 917 7, 103 50 39,016 380 

Massachusetts 41 3,303 62,235 47 14 10, 045 101 

Michigan 74 1, 855 6, 233 2, 210 21 11, 618 134 

Minnesota 21 516 677 2, 580 12 6, 918 165 

Mississippi- 451 6, 941 173, 488 134 74, 988 1, 192 

Missouri 34 1, 329 3, 521 123 82, 859 512 

Montana 4 13 53 400 122 8 

Nebraska 9 3 547 420 1 994 39 

Nevada 2 4 1,711 12 

New Hampshire 1 83 200 256 2 1, 047 83 

New Jersey 48 7, 769 707, 259 33 30.605 258 

New Mexico 8 5 161 6 2 415 27 

New York 934 27, 520 711, 454 11, 285 267 271, 480 1, 538 

North Carolina 1,113 28,189 680, 551 468 174, 672 2, 456 

North Dakota 12 43 68 1 325 22 

Ohio 322 10, 133 91, 277 210 133 91, 030 700 

Oklahoma 321 3, 268 74, 310 19 131 65, 962 884 

Oregon 11 111 710 27 7 4,345 45 

Pennsylvania 280 6, 119 165, 181 17,983 128 89,851 1, 317 

Rhode Island 17 965 8, 931 701 11 2, 715 55 

South Carolina 612 11, 410 291,285 216 85, 981 914 

South Dakota 1 2 900 7 

Tennessee 761 15, 755 929,481 274 113, 773 1,356 

Texas 484 3,053 88, 798 142 52,021 1, 084 

Utah 1,065 7 

Vermont 48 ______ 2 180 34 

Virginia 683 18, 989 472, 117 3, 987 292 100, 509 1, 551 

Washington 22 107 608 1, 284 7 3, 028 52 

West Virginia 210 1, 141 24,201 _______ 26 12,087 685 

Wisconsin 9 2, 132 20, 050 941 4 13, 330 16 

Wyoming 

Total 210, 663 3264, 594 6, 980, 240 83, 732 4, 065 458 2, 042, 851 25, 638 

' Includes seizures and arrests in cases adopted as w 11 as in cases originated by the Alcohol Tax Unit. 

Not including still seized at cleaning and cracking plants. 

Not including 2,014 gallons of denatured alcohol seized at cleaning and cracking plants. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE. 173 

TECHNICAL STAFF 

TABLE 88.-Analysis of the work of the Technical Staff during the fiscal year 1940- 

Income, profits, estate, and gift tax cases 

FIELD OPERATIONS-ALL DIVISIONS, CONSOLIDATED 

PART I-CASES NOT BEFORE THE BOARD OF TAX APPEALS 

(A) PROGRESS OF WORK 

Number 

of cases 

Revenue agent's finding or statutory notice 

Deficiency in 

tax Penalty Overassessmeat 

Pending at beginning of year: 

Awaiting Staff action 

Awaiting taxpayer's action on statutory 

notice directed or sustained 

Received during year (net-transfers, etc., deducted) 

Total 

Disposed of: 

Closed 

Petitioned to Board 

Total disposed of 

Pending at end of year: 

Awaiting Staff action 

Awaiting taxpayer's action on statutory 

notice directed or sustained 

Total 

3,772 

380 

9,892 

$55, 121, 232 

3,176, 772 

123, 741, 971 

$1, 173, 647 

18, 657 

1, 995, 959 

$1, 907, 371 

230, 797 

4, 709,191 

14, 049 182, 039, 975 3,178, 263 6, 638, 609 

7, 452 

1, 549 

65, 087, 482 

I 19, 798,260 

1,046, 745 

442, 829 

4, 040, 973 

127,972 

9, 001 74, 885, 742 1, 489, 574 4, 168, 945 

3, 487 

1,556 

70,993, 697 

I 36,160, 536 

1, 183, 933 

I 504, 756 

2, 329, 463 

140, 201 

5, 043 107, 154, 233 1, 888, 889 2, 469. 664 

2 Denotes amount of statutory notices directed or sustained by Staff divisions. 

(B) RESULTS OBTAINED IN CASES CLOSED 

Number 

of cases 

Staff decision 

Deficiency in 

tax Penalty Overassessment 

Agreements on original consideration (including 

agreed overassessments and agreed claim rejections) 

Agreements on reconsideration after statutory 

notice directed by Staff 

Defaults after consideration by Staff in pre-90- 

day or 90-day status (no petition filed) 

Unagreed overassessments and claim rejections 

Total 

5, 852 

82 

761 

757 

$19, 497, 875 

2,409, 465 

414, 492 

944 

$150,342 

82,134 

$1, 594, 257 

1, 814 

0,058 

1, 339, 124 

7, 452 22, 322, 576 232,476 2, 975, 253 

Percent of deficiency in tax sustained, 90.5. 

(C) RESULTS ON STATUTORY NOTICES SUSTAINED BY STAFF OR ISSUED AT DIREC - 

TION OF STAFF 

On hand July 1, 1939. Statutory notices directed, issued, or sustained, and pending expiration of 90-day period 380 Add statutory notices directed, issued, or sustained by Staff: 

Income tax 3, 335 Estate tax 177 Gift tax 60 

3, 572 
432 

1 1,897 

$25, 661, 577 

$2, 133, 637 

1, 151 

$13, 221, 105 

$4, 759, 626 

$920, 474 

$631, 666 

174 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 88.-Analwas of the work of the Technical Staff during the fiscal year 1940- 

Income, profits, estate, and gift tax cases-Continued 

(C) RESULTS ON STATUTORY NOTICES SUSTAINED BY STAFF OR ISSUED AT DIRECTION OF STAFF-Continued 

Disposed of: 

By settlement, after statutory notice directed by Staff action: 

Number of cases 82 

Deficiency and penalty-Staff decision $528, 600 

Deficiency and penalty-Staff decision on reconsideration $414, 492 

Overassessment-Staff decision $1, 018 

Overassessment-Staff decision on reconsideration $1, 814 

Defaulted by taxpayer, after statutory notice issued or sustained: 

Number of cases 761 

Deficiency and penalty $2,491,699 

Overassessment $40,058 

By petition to Board, from statutory notice sustained, or issued by Staff direction: 

Number of cases 1, 549 

Deficiency and penalty-Agent's finding 822 241, 089 

Deficiency and penalty-Staff decision $20, 059, 922 

Overassessment-Agent's finding $127, 972 

Overassessment-Staff decision $115, 211 

Transfers and adjustments 4 

On hand June 30, 1940. Statutory notices directed, issued, or sustained, and pending expiration of 90-day period 1,556. 

PART II-CASES DOCKETED BY BOARD OF TAX APPEALS 

(A) PROGRESS OF WORK 

Number 

of cases 

Amount stated in statutory notice 

Deficiency in 

tarx lt Overassessmerit 

Pending at beginning of year 4,982 $176,842,312 811, 772, 622 $103,005. 

Received during year (net-transfers, etc., 

deducted): 

Cases considered before petition 1, 497 

Cases not considered before petition X 694 

Cases reopened after trial 65 

Total receipts 4, 266 76, 307, 548 3, 680, 045 259, 684 

Total to be accounted for 9,268 253, 149,880 15,332,667 362,689 

Disposed of during year: 

Closed by stipulation-agreed settlement_ 3,285 83, 890,007 3, 809,016 39, 343 

Closed by stipulation filed pursuant to offer 

in compromise 30 6,350,884 1,466,607 

Closed by dismissal or default 287 3, 518,986 828, 872 4,044 

Tried before Board on merits 1, 301 33,948, 388 1,055,060 22,764 

Total disposed of 9,883 127, 728,265 7, 159,465 68,161 

Pending at end of year: 

In bands of technical advisors 2,077 80, ON 067 5,181,260 138, 773 

In hands of the division counsel 2, 278 45,391,538 2.691, 962 157, 785 

Total 4,355 125,441,595 X 173,212 296, 538 

(B) RESULTS OBTAINED IN STIPULATED CASES 

Number 

of cases 

Stipulated 

amount 

Percentage 

sustained 

Stipulations filed: Percent 

Agreed settlements 3.285 

Deficiency in tax $24,169, 327 29 

Penalty 276,397 7 

Overassessment 884, 606 

Pursuant to accepted offer in compromise 30 1, 559, 761 22 

Total 3,315 

No7E-The above figures are compiled on the basis of considenng that a ease referred to the Staff is 

still pending, unless and until it is closed by no petition being filed with the Board, by agreement or stipulation by dismissal or default, or by trial before the Board on the merits. However, the pertinent data at the 

distinctive stages in procedural status are readily recognizable. 

REPORT OF COMMISSIONER OF INFERNAL REVENUE 

PACIFIC DIVISION ONLY-FISCAL YEAR 1940 

CASES NOT BEFORE BOARD OF TAX APPEALS 

On hand July 1, 1939. Number of cases 

Received: 

Number of cases (net-transfers, etc. deducted) 

Deficiency and penalty, prior finding 

Overassessment, prior finding 

Disposed of by agreement: 

Number of cases 

Deficiency and penalty, prior finding 

Deficiency and penalty, Staff decision 

Overassessment, prior finding 

Overassessment, allowed by Staff 

Disposed of without agreement: 

Number of cases (net-transfers, etc., deducted) 

Deficiency and penalty, prior finding 

Deficiency and penalty, Staff decision 

Overassessment, prior finding 

Overassessment, allowed by Staff 

On hand June 30, 1940: 

Number of cases 

Deficiency and penalty, prior finding 

Overassessment, prior finding 

PACIFIC DIVISION ONLY-FISCAL YEAR 1940 

CASES DOCKETED BY BOARD OF TAX APPEALS 

On hand July 1, 1939. Number of cases 

Received: 

Number of cases (net-transfers, etc., deducted) 

Deficiency and penalty, asserted 

Overassessment, prior finding 

Disposed of by stipulation: 

Number of cases 

Deficiency and penalty, asserted 

Deficiency and penalty, as stipulated 

Overassessment, prior finding 

Overassessment, by agreement 

Disposed of by dismissal and default: 

Number of cases 

Deficiency and penalty, asserted 

Disposed of by trial before Board: 

Number of cases 

Deficiency and penalty, asserted 

Overassessment, prior finding 

On hand June 30, 1940: 

Number of cases 

Deficiency and penalty, asserted 

Overassessment, prior finding 

NEW YORK DIVISION ONLY-FISCAL YEAR 1940 

CASES NOT BEFORE BOARD OF TAX APPEALS 

On hand July 1, 1939. Number of cases 

Received: 

Number of cases (net-transfers, etc., deducted) 

Deficiency and penalty, prior finding 

Overassessment, prior finding 

Disposed of by agreement: 

Number of cases 

Deficiency and penalty, prior finding 

Deficiency and penalty, Staff decision 

Overassessment, prior finding 

Overassessment, allowed by Staff 

'About one-halt of these receipts occurred in last 4 months of fiscal year. 

175 

374 

888 

$5, 896, 921 

$346, 558 

672 

$3, 801, 295 

$1, 839, 841 

$229, 525 

$202, 065 

410 

$3, 712, 890 

$3, 492, 409 

$162, 493 

$19, 040 

180 

$1, 690, 977 

$48, 600 

710 

592 

$9, 542, 305 

$30, 695 

452 

$10, 101, 370 

$2, 323, 974 

$878 

$124, 711 

42 

$647, 125 

267 

$8, 922, 810 

$22 

541 

$12, 702, 158 

$30, 560 
176 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

NEW YORK DIVISION ONLY-FISCAL YEAR 1940-Continued 

CASES NOT BEFORE BOARD OF TAX APPEALS-Conti/Med 

Disposed of without agreement: 

Number of cases (net-transfers, etc., deducted) 

Deficiency and penalty, prior finding 

Deficiency and penalty, Staff decision 

Overassessment, prior finding 

Overassessment, allowed by Staff 

On hand June 30, 1940: 

Number of cases_ 

Deficiency and penalty, prior finding 

Overassessment, prior finding 

NEW YORK DIVISION ONLY-FISCAL YEAR 1940 

CASES DOCKETED BY BOARD OF TAX APPEALS 

On hand July 1, 1939. Number of cases 

Received: 

Number of cases (net-transfers, etc., deducted) 

Deficiency and penalty, asserted 

Overassessment, prior finding 

Disposed of by stipulation: 

Number of cases 

Deficiency and penalty, asserted 

Deficiency and penalty, as stipulated 

Overassessment, prior finding 

Overassessment, by agreement 

Disposed of by dismissal and default: 

Number of cases 

Deficiency and penalty, asserted 

Disposed of by trial before Board: 

Number of cases 

Deficiency and penalty, asserted 

On hand, June 30 1940: 

Number of cases 

Deficiency and penalty, asserted 

Overassessment, prior finding 

TABLE 89.-Analysis of work on compromise, extension of time, and final closing 

agreement cases, fiscal year 1940 

Cases 

comm. Elise eases 

Extension 

of time 

Final dosmg agreecases went cases 

On hand July 1, 1939 452 24 62 

Received (net) 946 148 261 

Total to be disposed of 1,398 172 323 

Accepted, granted, or approved 235 14 262 

Rejected 374 157 1 

Withdrawn 104 

Transferred 76 

Total disposed of 789 171 263 

On hand June 30, 1940 609 1 60 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 177 

OFFICE OF CHIEF COUNSEL 

TABLE 90.-Cases appealed to the United States Board of Tax Appeals, including 

those appealed from Board decisions to appellate courts, for fiscal year 1940 

APPEALS DIVISION-WASHINGTON OFFICE 

Pending beginning of fiscal year 1, 267 

Filed-new cases 39 

Received from field for appeal to Circuit Courts of Appeals 318 

1, 624 

Closed: 

By default, dismissal, etc 19 

By decision on merits 755 

By agreed settlement 32 

Total closed 806 

Transferred to field-remanded for further hearing 9 

Total 815 

Pending end of fiscal year 809 

TABLE 9L-Number, and amounts, of cases shown in table 90 for the fiscal year 1940 

only, by class of tax and amounts involved 

Class of tax 

Pending July I, 1939 

Filed, reopened, 

and received 

tram Held, fiscal 

year 1940 

Closed and trans-

'erred to field, Oscal year 1940 

Pending Tune 30, 

1940 

Num- Amount in Num- Amount in Num- Amount in Num- Amount in 

ber dispute ber dispute ber dispute ber dispute 

Income 1,140 $111, 519, 851 296 $12, 491, 972 741 $61, 816, 914 695 $62, 194, 909 

Estate 84 15,133, 245 29 10, 571, 673 48 1, 733, 582 65 23, 971, 336 

Gift 41 1, 578, 338 32 470, 977 24 1,122, 465 49 926, 850 

Unjust enrichment - 2 751 2 751 

Total 1, 267 128, 232, 185 357 23, 534, 622 815 64, 673, 712 809 87, 093, 095 

TABLE 92.-Circuit and Supreme Court cases pending June 30, 1940 

Class of tax 

Pending July 1, 

1940 

New appeals to 

Circuit Courts of 

Appeals and reopened 

Closed during fiscal 

year 1940 

Pending June 30, 

1940 

Number 

Amount in 

dispute 

Number Amount in 

dispute 

Numher 

Amount in 

dispute 

Number Amount in 

dispute 

Income 

Estate 

Gift 

Total 

552 

28 

18 

$39, 153, 141 

3,863,852 

1,298, 012 

$9, 788,681 

5,435,602 

490,067 

392 

23 

15 

$30,072,202 

323,853 

1,060,856 

?2 

$18,869,620 

8,975, 601 

727,223 

598 44,315,005 451 15,714,350 430 31,456,911 619 28, 572, 444 

TABLE 93.-Status of cases pending before United States Board of Tax Appeals 

June 30, 1940 

Unanswered 16 

On reserve calendar 1 

Inactive for other reasons 

In process of preparation: On field calendar . 

Ready for trial but not set: On Washington calendar 

Tried by Board of Tax Appeals: 

Awaiting decision 

Awaiting expiration of appeal period 

547 

$11, 736, 530 

$11, 900, 163 

$776, 566 

$755, 978 

631 

$13, 179, 627 

$653, 152 

1, 164 

802 

$21, 044, 013 

$87, 319 

703 

$32, 531, 153 

$6, 249, 507 

$13, 799 

$351, 591 

48 

$195, 129 

272 

$9, 844, 889 

943 

$39, 492, 486 

$102, 987 

72 

4 

36 

60 

Total 190 
178 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

TABLE 94.-Progress of cases in appella e courts on appeals from decisions of the 

United States Board of Tax Appeals for the fiscal year ended June 30, 1940 

Cases 

In circult 

courts 

In Supreme 

Court 

Cease 

In circuit 

courts 

In Supreme 

Court 

Pending beginning of fiscal year: 

Appealed by Commissioner_ 

Appealed by taxpayers 

Appealed by both 

Total 

Appealed during fiscal year: 

By Commissioner 

By taxpayers 

By both 

Total 

166 

392 

29 

co M 

Closed during fiscal year: 

Favorable to Commissioner _ 

Favorable to taxpayers _ .. _ _ _ 

Modified 

Total 

Pending end of fiscal year: 

Appealed by Commissioner_ 

Appealed by taxpayers 

Appealed by both 

Total 

200 

139 

62 

,-i M 00 N 

587 11 401 29 

153 

291 

7 

27 

11 

181 

398 

20 

11 

9 

451 38 599 20 

TABLE 95.-Results obtained in cases closed before the United States Board of Tax 

Appeals during the fiscal year 1940 

Character of closing Number of cases Amount In dispute Amount won Percentage 

of 

Default 19 $66,578 $66,578 100.00 

Decision on merits 755 19, 135, 688 866 38.90 

Agreed settlement 32 45, 100, 339 8, 828, 279 19. 57 

Total 806 64, 302, 605 16, 330, 718 25.40 

TABLE 98.-Disposition of cases by Uni ed States Board of Tax Appeals during the 

fiscal year 1940 

Character of closing Number of eases 

Amount In dispute Amount approved 

Percentage 

Deficiency meat 

 Overpay- Deficiency Overpay m ent - Net result 

Default 

Decision on merits- _ _ 

Agreed settlement 

Total 

19 

755 

32 

17, 903, 654 

93, 539, 804 

$66,578 

$1, 232, 035 

1, 560, 535 

7, 226, 034 

$66,578 

7, 267, 739 

$1,022, 203 

$66.578 

7, 435.866 

8,828, 274 

100.00 

38.90 

19.57 

806 61, 510, 036 2, 792, 570 14, 560, 351 1, 022, 203 16, 330, 718 25.40 

FIELD OFFICES 

TABLE 97.-Number, and amounts, of cases pending in field divisions by class of tax 

and amounts involved 

Class of tax 

Pending Tune 30, 1939 Filed and reopened, 

fiscal year 1940 

Closed, fiscal year 

1940 

Pend ng June 30, 

1990 

Number 

Amount in 

dispute 

Number 

Amount in 

dispute 

Number 

Amount in 

dispute 

Number 

Amount In 

dispute 

Income 

Estate 

Gift 

Total 

5, 106 

354 

328 

$167, 667, 666 

25, 674, 317 

25, 731, 765 

3, 853 

260 

110 

$76,105, 886 

16, 308, 513 

3, 242, 274 

I 4, 079 

312 

5 232 

496, 457, 564 

20, 258, 402 

5 15,182, 832 

4, 880 

302 

206 

$147, 315, 998 

21, 724, 428 

13, 791,207 

5,788 219, 073, 748 4, 223 95, 656, 673 4,623 131, 898, 788 5,388 182, 831,633 

Includes one case with an asserted deficiency of $984,950 which was transferred to the Bureau in Washington for considers ion. Includes one case with an asserted deficiency of $5,296,256 and a claimed overpayment of $37,825 which 

was transferred to the Bureau in Washington for consideration. 

REPORT OF COMMISSIONER OF INTERNAL REVENUE 179 

TABLE 98.-Disposition of cases by United States Board of Tax Appeals during 

fiscal year 1940 

Character of of dosing be

u

r o mf 

NAmount in dispute Amount approved 

Net result 

Per 

 age

c 

 o enf 

awes Deficiency recovery 

payment Deficiency OverPayment 

Default 

Decision on merits 

Agreed settlement 

Total 

Transferred to Washington 

Total 

271 

I, 035 

3,315 

$4, 658, 695 

16, 301, 994 

95, 516,414 

$13, 881 

667, 572 

8, 421, 201 

$4, PA 617 

8, 629, 231 

26,005, 485 

$334, 649 

923,637 

$4,382,498 

8,962,154 

33, 503, 099 

93.8 

52.8 

32.2 

4,621 

2 

116, 477, 103 

6,281, 206 

9, 102, 659 

37, 825 

39, 003, 333 1, 258, 286 46, 847, 701 37.3 

4,623 122, 758, 309 9,140, 479 

PROCESSING TAX SECTION 

TABLE 99.-Cases appealed to United States Processing Tax Board of Review, 

including those appealed to appellate courts, fiscal years 1938, 1939, and 1940 

1938 1939 1940 

Pending beginning of fiscal year 4 52 83 

Filed during year 54 107 120 

Total 58 159 203 

Closed: 

V' :11 

By dismissal 6 76 

By agreed settlement 

By decision on merits 

Total 6 76 110 

TABLE 100.-Number and amounts of cases shown in table 99 for the fiscal year 1940 

only, by class of tax and amounts involved 

Class of tax 

Pending July 1, 

1939 

Filed during fiscal 

year 1940 

Closed fiscal year 

1940 

Pending June 30, 

1940 

Number Amount in 

dispute 

Number 

Amount In 

dispute 

Number Amount in 

dispute 

Number 

Amount in 

dispute 

Processing 83 $5, 294, 362 120 $5, 619, 074 110 $3, 016, 215 93 67, 897, 221 

TABLE 101.-Status of cases pending before United States Processing Tax Board of 

Review June 30, 1940 

7 

23 

3 

10 

14 

22 

11 

3 

93 

Imperfect appeals 

Unanswered 

Set for trial: 

On Washington calendar 

On field calendar 

Motions to dismiss submitted to Board of Review: 

Awaiting decision 

Awaiting expiration of appeal period 

Circuit court of appeals: 

Awaiting decision 

Awaiting expiration of appeal period 

Total 
Cases Claims Amount 

$9,879, 485. 65 

147, 436i 359. 76 

157, 315, 845.31 

129, 505, 632.27 

27, 810, 213.04 

1, 273 488, 094. 50 

180 REPORT OF COMMIS'SIO'NER OF INTERNAL REVENUE 

TABLE 102.—Results obtained in cases closed before the United States Processing Tar 

Board of Review during fiscal year 1940 

Character of closing 

Number 

of°°°°° 

Amount of 

 claims in 

dispute 

Amount of 

claims 

recovered 

by taxpayers 

Percentage 

of claims 

recovered 

by taxpayers 

Dismissals 

Agreed settlement 

By decision on merits 

Total 

89 

 9 

12 

323, 657 

881, 413 

$1, 811, 145 

$12, 668 

71 

0 

3. 90 

.01 

110 3,016, 215 12, 739 .42 

TABLE 103.—Number of civil cases in Processing Tax Section, Appeals Division, 

pending June 30, 1939, and June 30, 1940, and number decided by courts duringfiscal year 1940. 

Cases pending 

Against 

Government 

6 

District courts 

Circuit courts of appeals 

Court of Claims 

Supreme Court 

33 Total 

TABLE 104. Interpretative, corporate reorganizalon, and bankruptcy and receivership cases disposed of by Processing Tax Section, Appeals Division, during 

Interpre- Corporate 

reorganication z

Bankruptcy and reeeivershiP 

Cases pending July 1, 1939 

Cases receiviid during fiscal year 

Total 

Cases disposed of during fiscal year 

Cases pending June 30, 1940 

22 

30 

1 

14 

12 

59 

52 

41 

15 

4 

71 

38 

11 11 33 

TABLE 105.—Review cases received and disposed of by the Processing Tax Section, 

Appeals Division, for the fiscal year 1940 

REPORT OF C'OMMISSIONER OF INTERNAL REVENUE 181 

CIVIL DIVISION 

TABLE 106.—Cases received and disposed of during the fiscal year 1.940 3 

Pending July 1, 1939: 

In court (exclusive of lien cases) 

Not pending in court 

Cases in court involving liens 

Cases not in court involving liens 

Total 

Received during the year: 

Suits by taxpayers 1, 352 

Suits involving liens 959 

Cases for suit by the United States 235 

Lien cases not in court 345 

Total 2, 891 

Total to be disposed of 6, 335 

Closed during the year: 

Cases (exclusive of lien cases) 

Cases involving liens 1,273 

 1,402 

Total 2, 675 

Pending June 30, 1940 3, 660 

Pending July 1, 1939 $203, 802, 941. 45 

Received during fiscal year 44, 723, 455. 46 

Total 248, 526, 396. 91 

Closed during fiscal year 43, 862, 197. 70 

Pending June 30, 1940 204, 664, 199. 21 

I Excludes bankruptcy, receivership, insolvency, compromise, and liquor cases. 

TABLE 107.—Results obtained in cases closed during the fiscal year 1940 I 

Number 

of cases 

Amount 

claimed 

Recovered 

(tour taxPaYet3 

Amount 

refunded 

Snits instituted by taxpayers 

Suits and claims by the United States 

Injunctions—Processing taxes 

Injunctions—Social security taxes 

Total 

1,152 

115 

113 

22 

$31, 015, 

8,181, 

4, 297, 

18, 

356. 87 

289. 98 

946. 24 

639.09 

$4, 708, 666.31 

$10, 287, 890. 17 

1, 402 43, 513, 232.18 4, 708, 666. 31 10, 287, 890. 17 

Cases decided 

Courts June 30, 

1939 

June 30, 

1940 

For 

Government 

Total 

20 

1 

12 

0 

97 

2 

13 

4 

3 

4 

3 

3 7 

116 7 

Number 

188 

585 

623 

48 

3, 444 

I Excludes bankruptcy, receivership, insolvency, compromise, lien, and liquor cases. 

TABLE 108.—Results obtained in lien cases closed during the fiscal year 1940 

Number Amount 

of cases collected 

Lien cases pending in court 

Lien cases not pending in court 

On band beginning of fiscal year 

Received during the year 

Total 

Disposed of during the year 

On hand end of fiscal year $350, 945.20 

137, 149. 30 
182 REPORT OF COMMISSIONER OF INTERNAL REVENUE REPORT OF COMMISSIONER OF INTERNAL REVENUE 183 

TABLE 109.-Civil cases pending at the beginning and end of the fiscal year 1940 1 

Pending 

July 1, 

1939 

Pending 

June 30, 

1940 

For suit by the United States - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 247 234 Pending in district courts - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 700 1, 951 Involving liens - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 671 702' Pending in circuit court of appeals - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 97 113 Pending in Court of Claims - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 538 56z Pending in Supreme Court - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 

Pending payment of judgment claims - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 119 89. 

State courts and miscellaneous - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 70 8 

Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3, 444 3, 660 

INTERPRETATIVE DIVISION 

TABLE 113.-Number of cases received and disposed of during the fiscal year 1940 

Cases on hand July 1, 1939 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 335 

Cases received during the year - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2, 314 

• Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2, 649 

Cases disposed of during the year- - - - - - - - - - - - - - - - - - - - - - - - - - - 

Cases awaiting action June 30, 1940 - - - - - - - - - - - - - - - - - - - - -

2, 351 

298 

REVIEW DIVISION 

1 Excludes bankruptcy, receivership, insolvency, compromise, and liquor cases. TABLE 114.-Number of cases received and disposed during the fiscal year 1940 

TABLE 110.-The number of Civil Division cases tried by the Department of Justice 

and the number decided by the courts during the fiscal year 1940 

Courts Cases tried 

Cases decided 

For the 

Government 

Against 

Government 

Partly for 

and partly 

against 

Government 

Total 

District courts - - - - - - - - - - - - - - - - - - - - - 220 222 118 22 362: 

Circuit court of appeals - - - - - - - - - - - - - - 67 67 47 4 118 Court of Claims - - - - - - - - - - - - - - - - - - - 32 38 17 1 56. 

Supreme Court - - - - - - - - - - - - - - - - - - - - 4 5 0 2 7 

Total - - - - - - - - - - - - - - - - - - - - - - - 323 332 182 29 543• 

COMPROMISE SECTION 

TABLE 111.-Number of cases received and, disposed of during the fiscal year ending 

June 30, 1940 

Pending July 1, 1939 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2, 858- 

Received during year - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 959 

Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4, 817 

Closed or in process of closing - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 884 

Pending June 30, 1940 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2, 933. 

TABLES 112.-Classification and tax liability involved in cases pending June 30, 

1940 

Class 

Pending In process of closing 

Number Liability Number Liability 

Decedent estates - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 427 $23, 151, 654 - - - - - - 

Insolvent banks - - - - - - - - - - - - - - - - - - - - - - - - - - - - 31 76, 579 - - - - - - 

Miscellaneous cases - - - - - - - - - - - - - - - - - - - - - - - - - - 1,396 2, 666, 834 - - - - - - 

Cash offers in compromise - - - - - - - - - - - - - - - - - - - - - 50 1, 140, 207 69 $1, 549, 31E 

Installment offers in compromise - - - - - - - - - - - - - - - - - 29 1, 085, 901 24 368, 311 

Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,933 28, 121, 175 93 1,915,824 

Estate and 

other miscellaneous taxes Income tax Total 

On hand July 1, 1939 - - - - - - - - - - - - - - - - - - - - - - - 11 101 112 

Received to July 1, 1940 - - - - - - - - - - - - - - - - - - - - - 80 504 584 

Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 91 605 696 

Disposed of during year - - - - - - - - - - - - - - - - - - - - - 70 492 562 

On hand July 1, 1940 - - - - - - - - - - - - - - - - - - - - - - - 21 113 134 

Amounts involved: 

Claimed by taxpayer - - - - - - - - - - - - - - - - - - - -

Approved by Review Division - - - - - - - - - - - - -

$4, 

3,

237, 

034, 

144. 15 

039.78 

$127, 

91, 

274, 

428, 

100. 14 

318.19 

$131, 

94, 

511, 

462, 

244.29 

357.97 

■ 

TABLE 115.-Public decisions, promulgated under Treasury Decisions 4264 and 

4583, during the fiscal year 1940 

Month Decisions 

numbered 

Income tax cases Estate and other miscellaneous taxes 

Number Amount 

approved Number Amount 

approved 

July 1939 - - - - - - - - - - - - - - - - - - - - - - 6195-6230 35 $3, 665, 987.91 1 $500, 000. 00 

August 1939 - - - - - - - - - - - - - - - - - - - - 6231-6259 27 56, 454, 781.31 2 148, 651. 42 

September 1939 - - - - - - - - - - - - - - - - - 8260-6285 24 3, 796, 335.69 2 62, 153. 23 

October 1939 - - - - - - - - - - - - - - - - - - - 6286-6305 13 582, 549. 13 7 408, 308. 79 

November 1939 - - - - - - - - - - - - - - - - - 6306-6333 27 2, 392, 862.88 43, 105. 01 

December 1939 - - - - - - - - - - - - - - - - - - 6334-6358 24 1, 972, 192. 16 33, 140. 23 

January 1940 - - - - - - - - - - - - - - - - - - - 6359-6375 17 1, 597, 181. 16 - - - - - - 

February 1940 - - - - - - - - - - - - - - - - - - 

March 1940 - - - - - - - - - - - - - - - - - - - - 

6376-6397 

6398- 6448 

19 

50 

1, 395, 693.56 

12, 038, 920.29 

a 

1 

355, 621.22 

52, 498.00 

April 1940 - - - - - - - - - - - - - - - - - - - - - 6449-6480 31 1, 640, 325.69 1 56, 51& 88 

May 1940 - - - - - - - - - - - - - - - - - - - - - 6481-6508 26 3, 465, 554.96 2 347, 298.61 

June 1940 - - - - - - - - - - - - - - - - - - - - - 6509-6544 36 2, 913, 439.44 - - - - - - 

Total for fiscal year - - - - - - - - - - - - - - - - - - - 329 91, 915, 824.18 21 2, 007, 295.39 

Abatements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 75, 171, 507.89 - - - - - - 180, 500.42 

Credits_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4, 248, 666. 08 - - - - - - -

Refunds - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12, 476, 622.30 - - - - - - 1, 826, 794.97 

Unadjusted - - - - - - 19, 027.91 - - - - - - 

Nom-The difference between the total of $94,462,357.97 approved in all cases reviewed and the above 

total of $93,923,119.57, as shown in the public decisions, is attributable in part to delayed application of 

credits, cases in which no public decisions are required, cases pending before the Joint Committee during 

the 30-day period not yet expired on June 30, and to uncompleted final scheduling of allowances. 
184 REPORT OF COMMISSIONER OF INTERNAL REVENUE 

REPORT OF commissioNsa OF INTERNAL REVENUE 185 

MISCELLANEOUS STATISTICS 

TABLE 116.— Moneys paid to collectors as proCeeds of In rem actions, judgments 

recovered in civil suits, fines and penalties imposed in criminal actions, and costs, 

as reported by clerks of United States courts (Form 158), year ended June 30, 

1940 

Internal-revenue collection 

districts 

In rem 

ewe' proceeds 

Judgments 

Interest Costs Total MlsuRs 

suits on ' 

bonds, etc. 

Fines and 

penalties 

Alabama $9, 690. 00 $352.56 $10, 042. 56 

Arizona 

Arkansas 

California: 

First district 47, 035.00 1, 126. 84 48, 161. 84 

Sixth district 11, 012. 68 244.01 11, 256. 67 

Colorado 500.00 40.25 540.25 

Connecticut 4, 636.00 4, 636.00 

Delaware $1, 164.40 $5.82 23.60 1, 193. 82 

Florida $400.00 3, 241.51 533.00 4, 174. 51 

Georgia 1, 351. 06 11, 647. 27 545. 76 13. 844. 09 

Hawaii 1, 850. 00 102.83 1,952. 83 

Idaho 

Illinois: 

First district 20, 419. 33 558.94 2E 978.27 

Eighth district 20, 480. 00 260.98 20, 740. 98 

Indiana 130.55 I 1, 733. 00 302.05 2, 165. 60 

Iowa 1, 870.00 553. 05 2, 423.05 

Kansas 57.22 57. 22 

Kentucky 8, 944.78 192. 50 408. 65 9, 545.93 

Louisiana 1, 501. 00 347. 02 1, 848. 02 

Maine a, 250.00 5, 200.00 

Maryland 14, 131. 90 719.25 14, 851. 15 

Massachusetts . 80 25, 602.00 64. 85 25, 667.65 

Michigan 11, 487. 22 64. 28 11, 551.50 

Minnesota 7, 058. 00 78.94 7, 136. 94 

Mississippi 1, 200.00 26 00 1, 220.00 

Missouri: 

First district 2, 899. 62 172. 03 3, 021. 85 

Sixth district 30, 154. 00 30, 154. 00 

Montana 290.00 290.00 

Nebraska 1, 260.00 1, 260. 00 

Nevada 460. 00 460.00 

New Hampshire 2, 685. 00 2, 685. 00 

New Jersey: 

First district 11, 659.00 11, 559.00 

Fifth district 2, 117. 00 55.74 2, 172. 74 

New Mexico 

New York: 

First district 

Second district 30.00 455.38 51, 255. 62 38.40 100.00 51, 879. 40 

Third.distrlet 145.38 9, 626. 03 9, 771. 41 

Fourteenth district 635. 17 6, 353. 00 150. 00 7, 138. 17 

Twenty-first district 2. 543. 00 20.00 2, 563. 00 

Twenty-eighth district 28.12 10,038. 00 228.69 10, 294. 81 

North Carolina 1, 413.45 23, 343. 26 253. 20 25, 009.91 

North Dakota 

Ohio: 

First district 230.00 74. 64 304.64 

Tenth district 871.00 147.55 1,018. 55 

Eleventh district 25.00 5.00 30.00 

Eighteenth district 1, 872. 80 179.87 Z 052.67 

Oklahoma 250.30 5, 975. 00 757.26 6,982. 56 

Oregon 

Pennsylvania: 

First district 16 047. 75 200. 58 16 248.33 

Twelfth district 1, 825. 00 1, 825. 00 

Twenty-third district 1, 867. 91 2, 459. 46 4, 327. 37 

Rhode Island 1, 839.00 62.06 I, 901.06 

South Carolina 50.00 1, 735.00 545. 19 2, 330. 19 

South Dakota 850.00 850.00 

Tennessee 375.00 8, 759.58 20.00 7, 154. 58 

Texas: 

First district 144. 92 16, 213. 55 202.35 16, 560. 82 

Second district 44, 675.25 8, 286.60 28.08 2, 870.79 55, 860. 72 

Utah 161. 45 161. 45 

Vermont 1, 225.00 1, 225.00 

Virginia 10, 896. 27 1, 128. 30 12, 024.57 

Washington 3, 067. 80 88.00 3, 135. 80 

West Virginia 327.33 327.33 

Wisconsin 621.97 1, 402. 00 2, 023. 97 

Wyoming 5110. 00 28.65 528.65 

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TABLE 118.-Summary of internal. revenue stamps issued to collectors of internal 

revenue and the Postmaster General during the fiscal years 1939 and 1940 

Kind 

Quantity Value 

1939 1940 1939 1940 

Distilled spirits and wines: 

Brandy 57, 150 38, 400 $5, 895, 570. 00 $3, 889, 320. 00 

Other domestic distilled spirits 2,101, 500 2,140, 830 228, 423, 037. 50 231,085, 102. 50 

Certificate of tax payment, distilled spirits, for shipment in 

tank cars 1,800 2260 (n (4 ) 

Export (secs. 2878 and 2885 I R 

CO 1, 200 18,800 120.00 1,290. 00 

Bottled-in-bond, export (blue 

strips) 3,080 I, 113, 820 369.60 9,011.40 

Bottled-in-bond, domestic 

(green strips) 79, 235, 000 128,610, 000 746, 187. 50 1, 268, 100. 00 

Container or bottle stamps, red 

strips 987, 811, 242 1, 070, 689, 700 9, 445, 162. 42 10, 474, 409. 56 

Rectified, class B I, 052, 200 1,616, 000 540, 700.00 584, 320.00 

Rectified, class A 22, 500 20, GOO ( 4 ) (I) 

Industrial alcohol transfer 6, 800 60, 800 (r) (I) 

Alcohol warehousing 116,000 164,300 ( 4) (5) 

Wholesale liquor dealer's packages 8, 800 800 ( 4 ) 0) 

Wine 16, 432, 040 17,981, 684 6, 145, 702. 73 7,685, 050. 97 

Fermented malt liquor 57, 341, 300 53, 875, 500 258, 903, 125. 00 263,948, 125. 00 

Tobacco: 

Manufactured tobacco 2, 448, 997, 360 2, 489, 379, 540 55, 216, 950.80 55, 335, 074. 50 

Snuff 392, 686, 722 302, 482, 989 6, 817, 699. 16 6, 984, 833. 04 

Tinfoil wrappers. 1, 422,180 1, 398, 048 15, 921. 39 15, 657. 17 

Cigars, large 173, 479, 880 183, 736, 400 13, 378, 718. 03 14, 248, 752. 35 

Cigars, small 16, 253,000 14,144, 000 122, 808.67 108, 768.45 

Cigarettes, class A 8, 341, 324, 400 8, 918, 083, 400 501, 427, 506. 30 536, 577, 877.50 

Cigarettes, class B 509,200 422,600 48, 791. 52 60, 310. 80 

Cigarette tubes 1, 003, 800 2 102, 100 14, 066.00 30, 541.00 

Oleomergine: 

Domestic, colored 19, 350 17, 975 37, 540. 00 28, 590.00 

Domestic, uncolored 16, 625, 825 16, 416, BE 815, 671. 37 793, 855.50 

Process or renovated butter 211,031 163,000 7, 457. 50 4, 930. 00 

Mixed flour 671,060 581, COO 8, 745. 00 6, 470.00 

Playing card 44, 682, 510 42, 308, 370 4, 466, 251.(0 4, 230, 837. CC 

Documentary 11, 167, 792 11, 344, 828 18, 918, 108. 00 17,306, 267. 03 

Stock transfer 15, 857, 426 17, 146, 280 16,646, 203.00 18, 098, 391. 00 

Silver transfer 7, 612 2,688 33, 792.00 65,650. 00 

Narcotic 3, 447, 350 3, 525, 400 170,809. 25 195, 455. 06 

Order forms for opium I, 038, 000 1, 090, 000 10, 380.00 10, 900.00 

Marihuana 100 100. 011 

Order forms for marihuana 190 3.I0 

National Firearms Act (sec. 2720 

I. R. C.): 

Machine guns, silencers, etc 20 20 4, 000.00 4, 000.00 

Certain short 2-barrel guns 900 450 901.00 450.00 

Special, or occupational, stamps 1, 000, 340 959,040 15, 740, 750.00 15,054,860.3 

Total 12, 594, 476, 279 13, 351, 512, 052 1, 144,003, 042. 34 1, 188, 107, 281.41 

Value inserted when purchased. 

3 Have no money value. 

TABLE 119.-Cost of printing and binding for the Internal Revenue Bureau and 

Service, fiscal years 1939 and 1940 

Class of work 

1939 1940 

Quantity Cost Quantity Cost 

Publications, regulations, decisions, etc 921,500 $104, 297. 45 1, 814, 000 $119,870. 28 

Blank forms 240, 230,000 381, 891. 57 251, 604, 000 371, 137.78 

Letterheads 10, 676, COO 15, 011. 26 13, 763, 000 16, 484.41 

Miscellaneous: Binding, memorandum sheets, 

analysis paper, etc 19, 057.78 15, 469.29 

Total 251, 827, 500 520, 258.06 267, 181, 00) 522,962.66 

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