The cover shows some of the many free

publications produced by the Internal

Revenue Service to explain the tax law and

to make it easier for taxpayers to fill out

their returns ,

For sale by the Superintendent of Documents U . S . Government Printing Offic e

Stock Number 04MOO-00333-8

I

1979 Annual

Report

Contents

Department

of the

Treasury

Internal

Revenue

Service

Publication 55

Introduction/2

Collecting the Revenue

Returns Received/4

Mathematical Correction

/4

Tax Receipts/6

Refunds6

Penalties9

Tax Credits/9

Presidential Election Campaign Fund / 9

Automated Information Filing / 9

Combined Annual Wage Reporting 10

Assisting the Taxpaye

r

Write, Call or Walk-in / 11

Toll-Free Telephone Assistance / 11

Walk-In Service / 11

Educating Taxpayers 12

Simplifying the Forms 12

Publications / 13

Informing Taxpayers 13

Resolving Problems

13

Making Information Available 13

Helping Other Countries/ 14

Enforcing the Law

Examinations / 15

Tax Return Classes / 15

Classification / 15

Examination Results / 15

Service Center Program / 17

Coordinated Examination Program 117

Computer Assisted Examinations / 17

Estimates of Unreported Income / 17

Tax Shelters / 17

Return Preparers / 18

Ouality Control / 18

Simultaneous Examination / 18

International Enforcement Program/ 18

Enrolled Agents / 18

Appeals / 19

Results / 19

Criminal Investigation 20

Results of Operations 20

Collection/2 1

Trust Fund Taxes/ 22

Delinquent Returns/22

Child Support Obligations

/ 22

Offers in Compromise

/ 22

International Operations / 23

Treaties/24

Employee Plans/Exempt Organizations 24

Commissioner of

Internal Revenue

Managing the System

Planning and Research 26

Research Efforts 126

Taxpayer Compliance

Measurement Program 26

Productivity / 27

Publishing Statistics / 27

Tax Models / 27

Projecting Returns Filed /27

Legislative Activities/ 28

Resources Management / 28

Centralized Services

/ 28

Labor-Management Relations 128

Paraprofessional Positions/ 28

Awards for Incentive / 2

9

Jobs for the Handicapped /29

Training / 29

Logistics Support / 30

Equal Employment Oppprtunity 30

Data Services / 3 1

National Computer Center / 31

Data Center / 31

Technical Activities / 32

Updated Procedure / 32

Internal Revenue Bulletin / 32

Making Rulings Public / 32

Inspection / 33 I nternal Audit / 33

Internal Security/ 34

Bribery Awareness/ 34

Assaults and Threats 134

Checking the Workforce

/ 34

Chief Counsel / 35

Administrative Services / 35

Criminal Tax / 35

Disclosure Litigation / 36

EP/EO / 3

6

General Legal Services / 37

General Litigation / 38

Interpretative / 38

Legislation and Regulations /38

Tax Litigation 140

Appendix/43
Introductio

n

This year I'm pleased to report that a number

of organizational changes have been implemented and appear to be accomplishing the

intended goals . The changes were undertaken last yearlo implement recommendations

made in a study conducted by senior IRS career executives.

The change most directly affecting taxpayers

was the modification of our administrative appeals procedure by consolidating the former

two levels of appeal into a single appeal

structure at the regional level. This system is

now fully in effect and is resulting in the more

expeditious handling of controversies at less

expense to both taxpayers and the IRS . We

continue to hold appeals conferences at alllocations where district conferences were

formerly held with the result that taxpayers

have conveniently available to them a regional appeals officer with full settlement authority .

We believe the change in settlement procedures of docketed Tax Court cases is working effectively to utilize our resources better

and to provide a more orderly procedure for

handling the increasing volume of docketed

cases .

The streamlining of our smallest districts has

been accomplished smoothly . We are realizing savings at no loss of service to taxpayers.

Separating functions involving service to the

public from those involving compliance has

increased our emphasis on taxpayer service

as well as permitted better integration of our

collection activities with related compliance

functions .

Notwithstanding our increased emphasis on

taxpayer problems, it seems clear that some

of these will continue to "slip through the

cracks ." If this occurs in even a very small

percentage of the huge number of matters

we handle the number of such cases will be

large. To address this problem we instituted

our problem resolution program (PRP) on

an experimental basis in 1977 to provide a

separate function to handle persistent taxpayer problems -those not satisfactorily resolved through normal channels. PRP is now

fully operational in all of our 58 districts and

10 service centers with problem resolution

officers who have the ability and know-how

to cut through red tape quickly on behalf of

taxpayers. About 72,000 taxpayer problems

were successfully resolved through this procedure in 1978 and a number of systems

changes identified by this program have

been made to improve IRS efficiency and responsiveness . A sample followup with taxpayers whose

problems were handled through PRP found a

high degree of satisfaction, but I will not be

satisfied as long as some taxpayer complaints and problems persist . Therefore, as

the year ended we were planning to set up

an ombudsman-like position in my immediate

office to have broad authority over PRP and

to serve as an advocate for taxpayers .

Our forms and instructions are a matter of

continuing concern . The challenge of presenting and explaining a complex law in an

understandable way is formidable and we devote substantial effort to this problem . In addition to our normal work in this area we have

formed a high-level task force to consider

longer-range possibilities. We have engaged

a private firm to review all the individual tax

return forms, schedules and instructions and

to make recommendations for redesign and

rewriting . This effort should be completed in

the fall of 1980 when wewill start evaluating

and testing any recommended alternatives.

While it is important that we constantly look

for ways of simplifying the burden of reporting, frequent changes should be avoided .

There is great value in taxpayers' familiarity

with our forms . I'm, therefore, pleased that

the 1979 forms follow the 1978 forms except

for a few changes required by new legislation .

There is no doubt that better taxpayer assistance, more sensitive responsiveness to taxpayer complaints and problems and simpler

tax forms and instructions are of great importance in achieving a high level of voluntary

compliance with our tax laws. But our enforcement efforts also are crucial . Any significant noncompliance is a matter of deep concern to the IRS, Congress and the taxpaying

public . Beyond the tax revenues lost when income is not reported is the basic question of

fairness to taxpayers who voluntarily obey

the laws.

Since the mid-Sixties the IRS has regularly

measured compliance on filed returns

through its taxpayer compliance measurement program (TCMP) . As an adjunct to our

audit program, TCMP is an effective tool to

measure the unreported income detectible by

normal audit procedures and to develop the I

computer formulae used to identify returns

for audit. 11 does not . however, measure the

unreported income of those who fail to file returns nor certain types of income not readily

detectible by normal audit procedures, such

as income from illegal sources .

In 1978 1 appointed a study group to prepare

estimates of unreported income . The group's

report, "Estimates of Income Unreported on

Individual Income Tax Returns," was released in August 1979. This report, using

data for the 1976 tax year, marks our first effort to measure unreported individual income .

The report estimates that individuals failed to

report $75 billion to $100 billion in income

from legal activities, with a resulting revenue

loss of $13 billion to $17 billion . Unreported

income from certain illegal sources- narcotics, illegal gambling and prostitution -was

estimated to be between $25 billion and S35

billion, and cost the government approximately $6 billion to $9 billion in lost tax revenues .

To put these figures in context, in the same

tax year individuals voluntarily reported nearly $1 .1 trillion in income and paid a total of

$142 billion in income taxes.

The report lends considerable weight to conclusions drawn from past TCMP studies that

voluntary reporting is highest when incomes

are subject to tax withholding . Incomes subjecl to information reporting show a lower

compliance level but still much higher than

incomes subject to neither withholding nor

information reporting .

In fairness to the millions of taxpayers who

voluntarily file, report all their income and pay

the tax due, we must strengthen current

compliance efforts and, where called for,

plan innovative actions to find and tax unreportedincome. A Treasury legislative proposal, currently un'

der consideration by Congress, to withhold

taxes from certain independent contractors

would be a major step in dealing with one area of low compliance .

Our program to match information documents filed by payers of wages, dividends, interest and certain other payments with income tax returns has become an increasingly

important tool to identity cases of underreporting of income and nonfiling of returns .

The number of documents matched has

been increasing substantially and with the full

implementation of the combined annual wage

reporting system will reach 400 million or

about 80 percent of the total filed.

Our document matching activity has been

separate from our examination program and

has not affected the selection of returns for

audit or their actual audit . However, in the

next filing season . a printout of the information documents processed will be associaled

with returns selected for the examination program so that the information will be available

to tax return classifiers and to return examiners . Since these documents will also be used

during TCMP audits, the accuracy of the results of that program should also be improved .

In last year's report I noted our increasing

concern about the use of abusive tax shelters -those which take positions beyond a reasonable interpretation of the law - and our

increased audit effort in this area. As a result

of that effort we have, at various stages of the

examination and appeals process, about

200,000 tax returns involving about $4 .5 billion of questionable deductions . Thi program requires a substantial commitment Is Of

resources but It is a commitment we will continue to make, and even increase if necessary. The great abuse we are finding in this

area, it allowed to continue unchecked, could

result in a serious decline in taxpayers' perception of the fairness and evenhandedness

of our administration of the tax system and

consequently in their voluntary compliance .

Many abusive tax shelters depend for their

successful marketing on the participation of

professional tax advisors. We intend to continue an exploration, begun this year, into the

ethical and legal standards that should govern such participation .

Tax administration today calls for us to increase our abilities to serve the majority of

taxpayers who comply with the law . A crucial

aspect of this service is to enforce the law

vigorously against the few who attempt to

subvert it . We believe this year's report reflecis that commitment .

Jerome Kurtz

Commissioner of Internal Revenue
4

Return

s

Received

Collecting the

Revenue

The IRS received 140.2 million tax returns of

all types in 1979 compared to 136.6 million in

1978.

Number of returns filed,

by principal type of return

(Figures in thousands . For details,

see Statistical Table7 .)

Type of Return 1978 1979

Grand Total -136,635 140,174

Income Tax, Total -100,794 104,933

Individual R87,405 90,827

Declaration of

estimated tax 8,103 8,425

Fiduciary 1,732 1,804

Partnership 1 .205 1,35

3

Corporation 2,349 2,524

Estate Tax 160 159

Gift Tax 195 20

2

Employment Tax 25,S41 26,21

9

Exempt Organization -410 450

Employee Plans R1,231 1,214

Alcohol, Tobacco

and Firearms "560 539

Excise Tax 908 1,013

Supplemental

Documents* R6,836 5,445

:Dam revised from previous annual report. 1 ~ncludes Forms 104OX. 1120X, 26N, 4868 .7004, Tent.

20L&M . 7005, 990AR, 4578, 5300 series, 5329,

1041 A and 2438.

The number of Forms 1040 and 1040A recalved in 1979 was 90.8 million compared

with 87 .4 million in 1978. Forms 1040 received totaled 54 .6 million, 2 .5 percent more

than the 53 .2 million received last year. More

than 36 .1 million individual taxpayers

- 40

percent of all individual filers- used the

short Form 1040A compared to 34 million in

1978, an increase of6 .1 percent.

Mathematical Correctio

n

As a result of checking the mathematics on

90.6 million individual returns, 2 million taxpayers were found to have overstated their

tax liabilities by $357 million, an average of

$159 per return. On3.8 million returns, taxpayers had understated their tax liability by

$906 million with an average of $241 .

Error rates for both the Form 1040 and

1040A rose slightly in 1979, with

5 .5 percent

of the 1040A's processed having mathematical errors compared to 5.1 percent for 1978 .

The error rate for Forms 1040 was7 .3 per .

cent in 1979 as compared to6 .5 percent for

1978 .

The IRS also checked the amounts claimed

for estimated tax payments and found that

taxpayers underclainned $333 million and overclaimed $661 million .

Individual Income Tax Returns

Mathematically Verifie

d

(In Thousands)

1978 1979

Number verified

by computer 83,915 -87,382

Number of returns on

which mathematica l

errors were detected 5,404 6,00

3

Percent of returns

with mathematical

errors 6.4

6. 9

Retums with Increase :

Number 3,371 3,75

5

Amount 791,363 905,624

Average amount

(dollars) 234.76 241 .1

6

Returns with decrease:

Number2 .0332 .249

Amount 309,155 357,35

1

Average amount

(dollars) 152.04 158 .9

2

Not including 3,175,000 verified by other means.

Gross Internal Revenue Collections

(in thousands of dollars. For details see Statistical Table 1 )

Source

Percent

of 1979

Collections

Increase or Decrease

1978 1979 Amount Percent

Grand total1 100.0 399,776,389 460,412,185 60,63S,796 IS.2

Income taxes, total 70.2 278,438,289 322,993,733 44,S55,44

4

Corporation 15.5 65,380,145 71,447,876 6,067,73 1

Individual, total 54.6 3213,058,144 4251,545,857 38,487,71

3

Withheldby

empioyerS2 42.4 165,254,230 195 .331,016 30,076,786

Other 2 12.2 47,803,913 56,214,840 8,410,92

7

Employment taxes, total 24.5 97,291,653 112,849,874 IS,S68,22

1

Old-age, survivors,

disability, and hospital

insurance, total 23 .4 92,630,407 107,525,982 14,895,57

5

Federal insurance

contributions .22 .3 88,362,960 102 .492,463 14,129,51

3

Self-employment

insurance contributions 1 . 1

Unemployment insurance0 .6

Railroad retirement0 .5

Estate and gift taxes 1.2

Excise taxes, total 4. 1

AJcohol 1. 2

Tobacco0 . 5

Other 2. 4

Collections are adjusted to exclude amounts transferred

to the Government of Guam. 1 Estimated Colleclions of individual income tax withheld

am not reported separately from old-age. survivors. disablity and hospital insurance (OASDHI) taxes on wages

and salaries. similarly, collections of individual Income tax

hot withheld are combined with 0ASDHl laxes on selfploymant income. The amount of OASDHI tax wilections

shown Is based on estimates made by the Secretary

16 .0 9. 3

18. 1

18. 2

17. 6

16. 0

16 .1

16. 0

4,267,457 5,033,519 766,062 18 .0

2,642,014 2,958,000 315,986 12 .0

2,019,231 2,365,893 346,662 17 .2

S,381,499 5,519.074 137,57S2.6

18,664,949 19,049,504 384,05 2.1

5,612,715 5,r>47,924 35 .212 0.6

2,450,913 2,495,517 44,6041 .8

10,601,321 10,906.063 304,7422 .9

of the Treasury pumuant to the provisions of

sac.201 (a) of the social security Act as amended,

and includes all 0ASDHl taxes . The estimates

shown for the two categories of individual troc,rhe taxes

were derived by subtracting the 0ASDH1 tax estimates

from the combined totals reported. I Includes Presidential Election Fund amunting to

S39,077,131.

- IncAudes Presidential Election Fund amounting to

$35,933,816.
I

Net Internal Revenue Collections

(in thousands of dollars)

Net Collections

Gross Percent

Source Collections Refunds I Amount of Total

Grand total 460,412,185 41,350,806 419,061,37 9

Corporation income taxes 71,447,876

100.0

5,771,288 65,676,588 15 .7

Individual income taxes 251,545,857 34,478,116 217,067,74 1

Employment taxes, total 112,849,874

Old-age, survivors, disability

and hospital insurance 107,525,98 2

Railroad retirement 2,365,89 3

Unemployment insurance 2,958,00 0

Estate and gill taxes 5,519,07 4

Excise taxes 19,049,504

I Does not include interest paid on refunds, In the

narrative, the total refund figure of $41 $358 .7 billion includes

783,914 interest.

Tax Receipts

Gross tax receipts in 1979 rose to $460 .4 billion, up $60 .6 billion over 1978 for a 15 .2

percent increase. This gain was larger than

the previous record $47 .3 billion rise between 1976 and 1977 .

Income taxes accounted for over two thirds

of all tax receipts . Individual income taxes totaled $251 .5 billion, an increase of $38 .5 billion or 18 .1 percent over the previous year,

while corporation income tax receipts were

$71 .4 billion, up by $6.1 billion, or 9.3 percent. Major factors in this increase were

higher personal income and higher corporate

profits.

Employment taxes consisting of social securlty, self employment, federal unemployment

and railroad retirement were $112.8 billion .

This rise of $15 .6 billion over 1978, 16 percent, reflected increases in the social security

tax rate and wage base.

51 . 7

687,893 112,161,981 26. 8

636,435 106;889,547 25 . 5

418 2,365,475 0.6

51,040 2,906,960 0. 7

108,534 5,410 .540 1 .3

304,975 18,744,529 4.5

Excise tax revenue rose to 19 billion, up $0 .4

billion, or 2.1 percent over last year. These

collections increased despite the continued

phasing out of the telephone tax and

changes made by the Energy Tax Act of

1978, including eliminating the excise tax on

buses and the exemption from tax of gasohol

and refined lubricating oil .

Estate and gift taxes, the smallest source of

revenue, advanced slightly by $143 million

- 2.6 percent- on collections of $5 .5 billion for 1979 .

Refunds

The IRS paid total refunds of $41 .7 billion to

69 million taxpayers including 3.8 million

checks totaling $773 million for taxpayers

who claimed the earned income credit . Last

year 69 million refunds totaling $39 .6 billion

were paid . Refunds to individual filers, Forms

1040 and 1040A, were $34 .9 billion, averaging $518 compared to $495 in 1978 .

7

Flow of Returns Filed and Refunds issued

Individual Income Tax *

(Cumulative number in thousands )

197 8

Returns Filed

Number

Percent

Refunds Issued

Numbe r

Percent

197 9

Returns Filed

Number

Percent

Refunds Issued

Numbe r

Percent

Jan Feb Mar Apr May June

10,983 36,754 53,375 82,589 85,164 86.346

12 .7 42 .6 61 .8 95.6 98.6 100

1,636 14,685 35,489 51,535 63,085 64.35 7

2 .5 22.8 55.1 80.1 98.0 100

9 .758 35,842 53,259 85.132 88,051 89,232

10 .9 40 .2 59.7 95 .4 98.7 100

1,399 13,139 34,074 50.279 62,761 64,30 7

2 .2 20.4 53 .0 78.2 97.6 100

- Returns processed by National Computer Center and refunds scheduled for issuance by Regional Disbursing Center s

The Tax Dollar

Where It Came From

Gross Collections (Net Collections)

Employment Taxes 24 .5 (26.8 )

Corporation Income Taxes 15.5 (15-7 )

Excise Taxes 4 .1 (4-5 )

Estate and Gift Taxes 1 .2 (1 .3)

Individual Income Taxes 54 .6 (51 .7)
Pipeline At the ten Regional Service Center

s

1. .-- d.-beimne

c= tee, cbeeeew

@ 001 um 100

ifirren, be, -el by ,pe With.

rib, reben W-bbrt I - le, th

e

T.bebi, Debennent Dbeesih,,

Ce,iOnce a tax return reaches one of ten IRS shown here are automated for faster

Service Centers, it travels through a series processing and faster refunds, people are

of processing steps known as "the involved every step of the way .

pipeline." While many parts of the pipeline

Penalties

Under law the IRS levies penalties such as

those for failure to pay, paying with bad

checks, late filing, negligence and fraud . In

1979, the IRS assessed 21 million penalties

of $1 .8 billion . For details, see Statistical Table 14 .

Tax Credits

Child care expense credits are available to

working parents meeting certain requirements . This year $0 .7 billion in child care

credits were claimed on 3 .4 million returns.

Earned income credits (EIC) are offered to

low-income taxpayers whVmaintain a home

for themselves and at least one dependent.

EIC of $1 billion was claimed by 5 .2 million

taxpayers, Legislation in 1978 provided for

advance payment of the earned income credit beginning in 1979 . These data will be available when 1979 tax returns are processed in

1980 .

Employers claimed $1 .4 billion on 747,000

returns for the new-jobs credit in 1979 .

This credit was replaced in 1979 by the targeted jobs tax credit designed to encourage

employment of specific groups .

The Energy Tax Act of 1978 allows taxpayers

a credit for energy conservation and renewable energy source expenditures made on

their residences . This year taxpayers claimed

$593 million in credits on5.8 million returns.

Presidential Election Campaign Fund

This year 23 .2 million individual income tax

returns had designations for the Presidential

Election Campaign Fund - 25.8 percent of

the returns processed . Designations amounted to $35 .9 million compared to $39 .1 million

designated in 1978 on 24.9 million individual

tax returns, or 28.9 percent of those processed . The cumulative amount credited to

the fund since it was initiated in 1972 is

$207.4 million .

Automated Information Filing

The IRS received over 327 million information

returns from businesses and organizations

required to report wages, interest, dividends

and other payments of which over 264 million were submitted on magnetic media.

Most information returns received on magnetic media and approximately 15 percent of

those submitted on paper will be matched

against files to verity such amounts taxpayers

reported on their returns.

The accompanying table shows the number

of organizations reporting on magnetic media

over the past decade .

Information Returns

Reported on Magnetic Media

Tax Documents Reporting

Year (thousands) Entities

1967 36,492 1,048

1968 47,686 2,426

1969 58,951 2,963

1970 68,300- 4,637

1971 91 .449 8,50

4

1972 115,008 12,758

1973 144,533 13,128

1974* 185,554 21,862

1975* 216,839 32,486

1976* 248,106 35,013

1977* A275,423 39,980

19781 264 .423 38,417

" Date revised from previous annual report. - Calendar year data, Data for 1973 and prior covers the

6

month period January through June .

Note: For 1978 and subsequent years the volumes shmn

do not Include Forms W-2 and W-2P processed by the Social security AdminItaration under the combined annual

-ige reporting system.
10

Combined Annual Wage Reporting

Combined annual wage reporting (CAWR) is

a system developed to reduce the reporting

burden for employers. This system, satisfying

the reporting requirements of both the IRS

arid the Social Security Administration (SSAj,

became effective for all wages paid after Dec .

31, 1977. Under CAWR, Schedule A, which

required a detailed listing of employee information, is no longer filed with employment

tax Forms 941 and 943 and the Form W-2

was redesigned to include the Federal Insurance Contributions Act (FICA) information

formerly filed on ScheduleA . The Forms W-2

are filed with the SSA, which processes the

information and supplies it to the IRS.

By eliminating Schedule A, the President's

Advisory Council on Paperwork Reduction

estimated an annual savings to employers of

$235 million .

In 1979 an estimated 170 million Forms W-2

were filed with SSA for the first time .

Allssisting the

Taxpayer

Write, Call or Walk-in

The IRS provides year-round assistance

through correspondence, telephone inquiries

and personal contacts, to give taxpayers information about the tax system, their rights

and obligations under it and the tax benefits

available to them .

This year the IRS received about 96,000 written, 33 million telephone and 8 million walkin inquiries . More than 60 percent of the inquiries occurred from January 1 through

April 27, 1979 - over 19 rnillion phone calls,

more than5 million walk-in inquiries, and

over 35,000 items of correspondence, totaling over 24 million requests for assistance . A

quality check of 300,000 telephone responses and returns prepared by IRS assistors during the filing period indicated an

overall national accuracy rate of almost 97

percent.

Toll-Free Telephone Assistanc

e

With the toll-free telephone system, taxpayers

anywhere in the United States can call IRS

numbers listed in the tax form packages for

information without paying a long distance

charge . Over 97 percent - 18.7 million-

of the telephone calls received during the

1979 tax return filing period were on the tolltree system.

Teletypewriter equipment with a nationwide

toll-tree number, except for Alaska and

11

Hawaii, gives hearihg-impaired taxpayers

access to telephone assistance.

Walk-In Service

Walk-in taxpayer assistance was offered in

the inner city, business districts and suburban and rural areas at 710 permanent offices

and at 147 temporary offices Sal up for the

filing period . In addition over 35,000 banks

and Postal Service locations helped distribute

more than 273 million tax forms and instructions.

When possible, hours of service at IRS offices were extended for taxpayers who could

not call orvisit during normal business hours.

Based on a General Accounting Office

(GAO) survey taken in January and February,
80 percent of the taxpayers had to wait less

than fifteen minutes for assistance.

The IRS provided foreign language assistance at 21 8 of its 857 taxpayer service offices. Spanish assistance was offered by 582

employees, while 446 assisted in other foreign languages . Bilingual taxpayer assistance

also was provided through a special form,

that translated from Spanish, French, Portuguese, Chinese and Vietnamese into English

the information necessary for IRS employees

to prepare returns .

Educating Taxpayers

For the past several years, the IRS has sponsored programs to educate the public about

the tax system . Programs are also available

to train volunteers who assist others in preparing returns.

The IRS sponsored classes for over 39,000

individuals and small business owners . More

than5 million student publications were provided free to high schools and colleges

through the Understanding Taxes and Fundamentals of Tax Preparation programs . IRS

district employees have met with high school

officials throughout the country to encourage

the use of Understanding Taxes particularly

in consumer awareness classes.

Through the volunteer income tax assistance

(VITA) program, the IRS recruits, trains and

supports volunteers who offer free tax assistance to low income, elderly, military and

non-English speaking taxpayers . Approximately 41,000 volunteers participated this

year and more than 300,000 federal income

tax returns were prepared .

Simplityling the Forms

A high-level task force to improve tax forms

was set up under the direction of the Cornmissioner, Deputy Commissioner and four

Assistant Commissioners . A contract was

also awarded to an outside firm to revise and

test Forms 1040, 1040A and related schedules to make recommendations for further

simplification as mandated by the Revenue

Act of 1978.

Volunteers in Pittsburgh, Indianapolis and St .

Paul tested the 1979 individual income tax

forms and related schedules . These volunteers - of different income levels, educational backgrounds, ages and occupations - were recruited through radio, television,

newspaper announcements and organizations, such as the Chamber of Commerce,

League of Women Voters and senior citizens

groups . The IRS adopted many suggestions

and recommendations for improvement in the

forms and instructions . For the first tirne computerized readability studies were used to

identify portions of the tax forms instructions

that could be made easier to read .

PublIcations

The IRS distributed many taxpayer informstion publications free of charge including 3 .1

million copies of Your Federal Income Tax, 1 .4 million copies of the Tax Guide for Small

Business, 840,000 copies of the Farmer's

Tax Guide, and 126,000 copies of the Tax

Guide for Commercial Fishermen. Additional

tax materials were furnished to more than 7 .5 million individual taxpayers, 625,000 tax

practitioners and 560,000 employers . IRS

also publishes more than 80 boolkiets-

three in Spanish-on specific tax topics.

Informing Taxpayers

The IRS issued more than 7,000 news releases and answered nearly 20,000 media inquiries. The three major television networks

and many radio and television stations, daily

and weekly newspapers, magazines and specialized publications were furnished taxpayer

information materials. A specialized media program provides tax information to the public through publications

issued by trade, professional, service and fraternal organizations . Federal agencies such

as the Small Business Administration and the

Office of Minority Business Enterprise assisled the IRS in distributing this information .

The earned income credit, IRS assistance for

the hearing impaired, taxpayer education and

small business programs were publicized

through specialized media.

IRS employees participated in a television

"Tax Clinic" broadcast over public television

stations in 38 states during which viewers

could call their local IRS offices for answers

to tax questions .

Three half-hour IRS films provided information on the American tax system, examination

and appeal rights and the tax responsibilities

of running a small business . These films, two

of which were also released in Spanish, appeared on TV across the nation, and before

trade, civic, educational and other groups.

The IRS provided special information to persons considered eligible for the earned income credit (EIC) with the continued cooperation of the Departments of Health, Education

and Welfare, Agriculture and Labor . Additionally, the IRS sent notices to individuals who

didn't claim the EIC although they appeared

to be qualified according to their tax return

information. As a result of the notices

380,000 additional taxpayers received the

EIC .

Resolving Problems

The IRS' problem resolution program (PRP)

attempts to resolve taxpayers' complaints not

satisfied through regular channels . Each IRS

district has a problem resolution officer who,

as a member of the director's staff is independent from the operating divisions . The

most common types of problems handled by

PRP are complaints about not receiving refunds and about erroneous bills .

During 1979, PRP helped resolve approximalely 72,000 taxpayer problems .

Making Information Availabl

e

During 1978, disclosure officers and specialists processing requests for access to records under the Freedom of Information (FOI)

Act in district offices and service centers,

granted 4,264 in full, 1,0 16 in part and denied 382 in full . The National Office FOI reading room serviced about 25,000 requests to

copy or inspect records . This level of service,

which is a 45 percent increase over the prior

year, was due primarily to the release of private letter rulings edited to protect the identity of taxpayers to whom they were originally

issued.

Under the Privacy Act of 1974 individuals

made 510 requests for access to records

about themselves and 19 requests to amend

or correct these records . The IRS permitted

full access in 355 of these requests and 83

were granted partial access .
14 Enforcing is

the Lc1w

This year, pursuant to the provisions of the

Internal Revenue Code, 4,648 disclosures of

tax information were made to the Department

of Justice, 132,213 to child support enforcement agencies and approximately 73 million

to state tax agencies .

By law the IRS must maintain the confidentiality of tax returns and return information

except in those specific circumstances where

disclosure is authorized . This year the IRS

developed security guidelines for federal

agencies entitled to receive information and

improved recordkeeping and reporting requiremenis for the disclosure of tax information .

The exchange of confidential information

with states is intended to increase tax revenues, reduce duplicate audits and increase

taxpayer compliance . Federal tax information

received by the slates may be disclosed only

to state agencies charged with administering

state tax laws and only upon the request of

the head of that agency. Disclosure officers

annually visit each state lax agency to check

on procedures used to safeguard return information . Each year IRS enters into an

agreement with states that identity the types

of information to be regularly exchanged and

limits the exchanged information to that

needed and used. There are now 93 federalstate agreements in effect .

Helping Other Countries

In 1963 the IRS in cooperation with the

Agency for International Development (AID)

began a program to assist foreign governments in modernizing their tax administration

systems . Since the program started almost

5,350 visitors from 130 countries have visited

the IRS for orientation and observation programs and this year 342 officials from 59

countries participated . IRS advisers have

been assigned to thirty Seven countries, the

Caribbean Community and the Central American Secretariat for Economic Integration .

This year long-term programs were initiated

in Egypt, El Salvador and Sierra Leone, with

continuing programs in Liberia, the Northern

Mariana Islands and the Trust Territory of the

Pacific Islands . Special short-term assistance

was provided to Jordan . There were frequent

visits between Canadian National Revenue

and IRS officials to discuss compliance, management and other topics of mutual interest.

The IRS participated in the 26-member-country Inter-American Center of Tax Adminislrators (CIAT) thirteenth General Assembly in

Quito, Ecuador, in May 1979 where the Deputy Commissioner made a presentation on

"How to Measure the Effectiveness of Tax

Administration ." In February 1979 the Assistant Commissioner for Taxpayer Service and

Returns Processing presented a paper,

"Safeguarding ADP Files and Protecting Taxpayer Privacy," at the CIAT ADP conference

held in Mexico City . Through CIAT the IRS

has helped the government of Trinidad and

Tobago conduct an ADP feasibility study .

The Commissioner will serve as a member of

the CIAT Executive Council for 1980 .

ExamInations The IRS examines returns to help ensure a

high degree of voluntary compliance . The

discriminant function (DIF) system is a com_

puter method used to select individual returns for examination using mathematical formulae for each class of return to measure the

probability of error . Returns selected by DIF

are screened manually before being assigned

for examination .

Returns may also be selected at random for

examination under the taxpayer compliance

measurement program (TCMP), to provide a

statistical sample of all classes of individual

returns . Examinations under this program are

more intensive because the results are used

to develop measurements of compliance and

to update DIF formulae. Compliance measurement is an important factor in determining examination coverage of different classes

of taxpayers.

Some returns are selected through manual

review or because of a related examination

For example, it the IRS examines a partnership return the returns of partners may be audited . Returns of shareholders and executives may be examined with the audit of their

corporation. Other returns may be selected

based on information documents filed by

payers of wages, dividends and interest . The

IRS also screens returns with adjusted gross

income above certain levels and amended returns of taxpayers.

Tax Return Classes

During 1978, IRS conducted a study to determine whether the class structure using adjusted gross income (AGI) to group individual

returns could be improved . Classes are used

for DIF scoring, planning workload and staffing and monitoring results of examinations .

The study group recommended new classes

to group returns for better use of IRS examination resources . Total positive income CTPI) -the sum of all positive income values appearing an the return, such as wages, dividends, interest, rents and other income

items, with losses and other negative items

treated as zero-will be used to class nonbusiness returns and total gross receipts

(TGR) to class business returns beginning

with the 1979 individual returns filed in 1980 .

Classification

The classification program includes the manual screening of DIF returns and the classification of other returns to identity for examination those returns having the highest potential of error. In 1979 the IRS approved

centralized classification at the service centers instead of in district offices . This change

will be implemented at all service centers by

the end of 1980 .

Examination Results

The IRS examined 2,273,603 tax returns of

all types in 1979 . Of those 199,907 returns

were examined in service centers, compared

to 169,390 last year, an increase of 18 percent . The remainder were examined in district offices by revenue agents and tax auditors.

Revenue agents examined 679,302 returns at

the taxpayer's residence or place of business, a decrease of 48,951 returns or 7 percent from last year. Tax auditors examined 1 394,394 under office audit procedures, a

decrease of 36,775 returns or3 percent from

last year .

Examination coverage of income, estate and

gift tax returns was 2.24 percent compared

to2 .29 percent in 1978 .

The IRS examination program resulted in

$7 .2 billion in recommended additional tax

and penalties, of which individual returns accounted for $2.0 billion, fiduciary returns for

$104 .9 million, corporate returns for $4.2 billion and estate and gift tax returns, $683 million . The examination of employment and excise tax returns resulted in the remaining

$161 million .

This year IRS examinations also disclosed overassessments on 133,059 returns resulting

in refunds of S328 million compared to

132,600 returns with refunds of $312 million

in 1976 .

Statistical Table8 shows examination activity

for 1979 .
is

Revenue Agents and Tax Auditors (District Examination Divisions)

Percent of Returns Examine

d

By Type of Tax

Percent of Dollar Recommendations (Millions)

By Type of Tax

Estate& Gift 2.0%

Corporation6 .9%

All Other 111 .3%

Individual&

Fiduciary 79.89/6

Estate& Gift9 .71/6

Corporation 58-71/6

All Other3 .3%

Individual&

Fiduciary 28.35/6

Service Center Program

The IRS service center examination and correction program resolves or verifies issues

that can be handled through correspondence

with the taxpayer . In 1979, 696,341 returns

were examined or corrected compared to

663,173 in 1978,a5 percent increase .

Coordinated Examination Program

The coordinated examination program (CEP)

covers financial institutions and utilities

whose gross assets exceed $1 billion and

other corporations whose gross assets exceed $250 million.

Since coordinated examinations involve complex accounting systems the IR

' S

uses teams

of revenue agents, economists, computer

specialists, engineer agents, international

and excise tax examiners and employee

plans specialists.

At the end of the year, over 1,300 corporations were in this program .

Computer Assisted Examinations

Computer programs reduce the cost of investigalions, examinations and compliance

projects since computer procedures take a

fraction of the time to do the same job manually.

IRS has a staff of about 150 audit specialists

trained in computer systems, hardware, program languages and examination techniques,

17

Estimates of Unreported income

In August the IRS issued a report on "Estimates of Income Unreported on Individual Income Tax Returns . " The study estimated

that individuals did not report $75 billion to

$100 billion of income for tax year 1976 from

legal activities, resulting in a revenue loss of

approximately $13 billion to $17 billion, in addition, individuals engaged in illicit drug

sales, illegal gambling and prostitution are

estimated to have failed to report $25 billion

to $35 billion of earnings on which the revenue loss may range from $6 billion to $9 billion .

The IRS is engaged in a number of compliance efforts involving this so-called subterranean economy, such as matching information documents with tax returns to identify

persons not filing returns and persons who

underreport income on their returns as well

as investigating persons who previously filed

returns but have stopped doing so .

As a result of the task force's report the IRS

is establishing new programs and allocating

resources to coordinated projects to discover

and tax unreported income . The results of

these projects wit be considered in the future

selection of returns for examination .

Tax Shelters

In recent years many promoters have arranged artificial transactions based on questionable legal interpretations to market limited

partnership syndications and individual investments to high-income taxpayers, creating

large tax deductions and losses that lack

economic reality.

In 1973 the IRS began a tax shelter audit program in the oil and gas industry, later expanding to other potentially abusive shelter

areas . Efforts have included identifying tax

shelter cases, educating agents to recognize

tax shelter issues, developing the IRS position on key issues and identifying cases for

early litigation .
irl

Audit coverage of all partnership returns was 2 .5 percent for 1979 with 17 percent coverage for partnership returns in the over-

$25,000 loss category . The use of computer

programs to analyze, identity and retain data

on partners and partnerships, coupled with

information obtained from the Securities and

Exchange Commission, state agencies and

others, improves the IRS capability to identity

partnership returns that warrant examination .

Return Preparers

The Tax Reform Act of 1976 permits1he IRS

to regulate standards of conduct as well as

disclosure and reporting rules for return preparers. Penalties ranging from $25 to $500

are provided for noncompliance with the laws

and regulations.

In 1979 over $1 million in penalties have

been proposed by district offices against

3,519 preparers .

Ouslity Control

The quality control staffs, through review of

completed work, attempt to assure fair and

impartial administration of the revenue laws

by examiners . The staff also advises management of areas requiring attention and takes

action to maintain high-quality exarnination

standards. The IRS is currently defining quality examination in more measurable terms .

Simultaneous Examination

The IRS simultaneous examination program

with treaty countries originated with Canada

in 1977 and was expanded to the United

Kingdom in 1978 and the German Federal

Republic and France this year .

In this program, the participating governments separately examine the affairs of designated multinational taxpayers under their

respective jurisdictions. Before an audit begins representatives of each country meet to

I

plan and coordinate the examination and information is exchanged during each stage of

the examination, in accordance with the tax

treaty provisions.

International Enforcement Program

Examiners with expertise in international issues audit returns containing those issues,

the majority involving multinational corporations included in the coordinated examination

program . International examiners are trained

to handle complex issues involving controlled

foreign corporations, transfers of property to

corporations, allocation of income among

taxpayers, foreign tax credit and the international boycott provisions of the Tax Reform

Act of 1976.

Enrolled Agents

individuals who are not attorneys or Certified

Public Accountants (CPAs) must pass the

special enrollment examination to represent

taxpayers before the IRS .

The examination covers the tasks enrolled

agents must perform and emphasizes federal

tax laws as they apply to business operations, sole proprietorships, partnerships and

corporations . The current examination is divided into four parts and candidates are required to pass each part though they may retain credit for any part passed and need only

retake those parts failed . They must, however, pass the entire examination within two

consecutive years.

Treasury Department Circular 230, Regulations Governing the Practice of Attorneys,

Certified Public Accountants, Enrolled

Agents, and Enrolled Actuaries, was amended in 1979, to expand the advertising and solicitation provisions of the regulations. Enrolled agents may now advertise certain

background and fee information .

This year, 4,332 candidates took the special

enrollment examination, compared to 4,380

in 1978 .

Appeals The IRS encourages the resolution of tax disputes through an independent administrative

appeals system rather than litigation. The appeals system, administered by the Office of

the Regional Director of Appeals in each of

seven regions, is designed to minimize inconvenience, expense and delay to taxpayers in

resolving contested tax cases .

Proceedings in the appeals process are informal so taxpayers may, and frequently do,

represent themselves. In addition, in all office

examination cases and in field examination

cases where the disputed tax liability for each

taxable year involves $2,500 or less, taxpayers may obtain a conference without filing a

written protest.

If a tax dispute cannot be resolved at the administrative appeals level, taxpayers have additional appeal rights to the courts . If the disputed tax does not exceed $5,000 in any tax

year, a simple procedure is available under

theU.S . Tax Court small case procedures

that permits informal hearings where taxpayers may present their cases before a special

trial judge. However, neither the taxpayer nor

the government may appeal decisions in

such cases.

If the disputed tax exceeds $5,000 or if the

taxpayer chooses, the case may be heard

under regular Tax Court procedures . Taxpayers may choose to bypass the Tax Court by

paying the tax deficiency and filing a claim

for refund within two years from the date of

payment .

If the claim is denied or no action is taken by

the IRS within six months, the taxpayer may

file suit for a refund in either a

U.S . District

Court or the Court of Claims. Adverse decisions of the Tax Court or the District Court

may be appealed to the

U.S . Circuit Court of

Appeals having jurisdiction . A party may petition the U .S. Supreme Court to review adverse decisions of the Court of Claims and

the Circuit Courts of Appeals .

Cases considered by Appeals fall into two categories : nonclocketed and docketed . Non.

docketed cases are those in which a taxpayer is protesting a proposed action by an IRS

19

district or service center director involving

additional taxes and/or penalties, a refund

disallowance or a rejection of an offer in

compromise. Docketed cases are those in

which taxpayers have filed a petition with the U .S. Tax Court . During this year, 21 percent

of Appeals receipts consisted of docketed

cases and 79 percent nonclocketed.

Results

This year reflects the most significant

changes to the IRS'administralive appeals

process in many years . On Oct . 2, 1978, the

IRS commenced operating under a single level of appeal . In addition to the cases previously under the jurisdiction of Appeals and

the former district conference, the appeals

function now has increased responsibility for

post assessment penalty and employee

plans/exempt organization appeals, This was

also the first full year of operation under Rev

.

enue Procedure 78-9 where Appeals now

has exclusive jurisdiction of docketed cases

for a period of four months with the possibility of extensions if a case is in the process of

being settled .

When the new single level of appeal began

there were approximately 11,500 work units

in the district conference inventory, which

were transferred to the new Appeals office .

Within six months Appeals disposed of 93

percent of this inventory . The total inventory

of the administrative appeals process remained relatively level at year's end - there

were 35,000 work units in inventory compared to 32,700 at the end of 1978 .

The overall agreement rate for nonclocketed

work units increased from 84 percent in 1978

to 85 percent in 1979 . The docketed agreement rate in 1979 for Appeals and District

Counsel combined was maintained at the 73

percent level of 1978, prior to Revenue Pro

.

cedure 78-9 . For Appeals, under Revenue

Procedure 78-9, the agreement rate was 52

percent with 70 percent of the cases settled

within tour months .
K11

Criminal

Investigation

In 1978 the district conference appeals function disposed of 54,000 work units with 960

appeals officers and district conferees. In

1979 the administrative appeals process disposed of 46,~00 work units with .130 fewer

appeals officers than the previous year s cc,mbined total of appeals officers and district

conferees . The disposal rate in 1979 was 55

work units per appeals officer . In 1978 the

former Appellate Division averaged 43 work

unit disposals per appeals officer and the

combined disposal rate for appeals officers

and district conferees in 1978 was 56 work

units. In addition to these work units, the Appeals Division disposed of 7,200 post assessment penalty appeal protests representing

$12 million in 1979 .

Criminal investigations for the enforcement of

the criminal provisions of the tax laws are divided into General Enforcement and Special

Enforcement Programs.

The General Enforcement Program provides

for balanced criminal tax enforcement and

geographical and occupational coverage of

the population involving various types of alleged violations of the tax laws. In recent

years, added enforcement efforts have been

put on the questionable refund program and

the illegal tax protester project .

The Special Enforcement Program covers the

Identification and investigation of individuals

who derive substantial income from certain

illegal activities and violate the tax laws . Special agents of the Criminal Investigation Division participate in the federal strike force program against organized crime with strike

force units located in 13 major cities coordinated by attorneys from the Justice Department . The Special Enforcement Program also

includes the high-level narcotics financiers

and traffickers project coordinated with the

Drug Enforcement Administration, wagering

and other efforts against racketeers.

Results of Operation s

Some 9,780 investigations were initiated in

the General and Special Enforcement Programs, up from 9,481 the previous year. The

Division completed 9,952 investigations and

recommended prosecution in 3,338 investigations. Grand juries indicted or U .S . Aftorneys filed information on 1,820 taxpayers.

Prosecution was successfully completed in

1,612 cases . Taxpayers entered guilty pleas

in 1,152 cases, 118 pleaded nolo contendere

and 342 were convicted after trial . Acquittals

and dismissals totaled 96 and 183, respectively. Of the 1,519 taxpayers sentenced during the year, 675 or 44 .4 percent received jail

sentences .

In its Special Enforcement Program alone the

Division completed 1,533 investigations and

recommended prosecution in 685 cases.

There were 306 convictions or pleas of guilty

to tax charges and 832 prosecutions pending

on Sept. 30,1979 .

The accompanying table covers the results of

criminal actions in tax fraud .

Results of Criminal Action In

Tax Fraud Cases

Number of

Defendants

Action 1978 1979

Plea of Guilty Or

nolo confendere 1,189 1,27 0

Convicted after trial 225 34 2

Acquitted 70 86

Nol-prossed or dismissed . 119 183

Total Disposals 1,603 1,881

indictments & Information 1,724 1,820 .

Percentage of Jail Sentences

to Total Sentenced 47.1 44.4

Collection The IRS collects taxes that are due but not

paid, securing delinquent tax returns and

payments, and preventing delinquency in the

filing and payment of taxes. During 1979, the

Service disposed of 2 .1 million delinquent

accounts. Some $3 .3 billion were collected

from delinquent accounts and $1 .6 billion

were collected in response to notices sent to

taxpayers . Approximately 1 .3 million delinqueni returns were secured, involving $1 .4

billion in additional assessments. Returns

compliance programs identifying potential

nonfilers secured 76,968 returns with $20.5

million in additional taxes assessed . Statistical Table 13 shows results for 1979.

Results of Direct Enforcement on

Delinquent Accounts and Return s

1978 1979

Delinquent Taxes

Collected I

From Delinquent

Accounts *$3,070.0 $3,316.1

From Notices $1,225.0 $1,584 . 1

Delinquent Reliturds

secured 2

By Collection Division 1,056 .2 1 .324 .2

By Examination Division 83 .9 5B .2

Additional Tax, Penalty

and Interest Assessed

on Delinquent Ratums

(Net of Prepaid credits)

By Collection Division $989 .0 $1,379 .1

By Examination

Division **$145 .2 $69 .0

Raisd

* RWSW figum . The $685.5 million previously mporlod

was overstated due lo . I.Polting -c-lation emor .

,i millions

thousands

2 1

Over the past year several significant steps

were taken to improve programs to fulfill the

Collection mission . For example, it was deter.

mined that some work previously performed

in the district offices could be done more effi.

ciently in the service centers, frequently replacing expensive field investigations, A new

service center Collection function initiates

correspondence and telephone contacts with

taxpayers to resolve balance due and return

delinquency conditions. If a taxpayer is unable to make immediate Payment, the service

center will, under certain circumstances,

make arrangements with the taxpayer to pay

the amount due in equal monthly installments. The taxpayer must complywith certain conditions, such as timely payment of fu .

ture taxes and filing current returns. Cases

that cannot be resolved in the service center

are sent to the various district offices for iurther action.

Most cases sent to the districts are initially

handled by correspondence and telephone

contacts . Taxpayers may also come to the

district office to discuss their case with an

IRS representative .

Cases that cannot be resolved by these

methods are sent to the field function where

revenue officers and revenue representatives

personally contact taxpayers to collect

delinquent taxes and secure delinquent returns .

Federal tax laws provide the IRS with broad

authorities to collect delinquent taxes.

Among these are the filing of a Notice of Federal Tax Lien and 371,000 were filed in 1979 ;

levy authority for wages, salaries, etc,, and

465,000 were served in 1979, and the seizure of both real and Personal property, with

5,723 made in 1979.
2 3

Trust Fund Taxes

Nonpayment of taxes withheld from employee's wages is one of the most serious delinquency problems . IRS identifies employment

tax delinquencies through various programs

and closely monitors employers who fail to

comply with the deposit, filing and payment

requirements. The federal tax deposit alert

program identifies taxpayers who are required to deposit taxes withheld from their

employees' wages but do not make these deposits . These taxpayers are contacted by revenue officers who take appropriate action . If

further followup is necessary, taxpayers are

monitored under the trust fund compliance

program . Such taxpayers may be required to

file monthly, rather than quarterly, returns .

Some may also be required to deposit withheld taxes into special bank accounts in trust

for the United States. Violations can lead to

criminal prosecution .

Delinquent Returns

The IRS is developing a predictive model to

select cases for investigation from among

nonfiler leads. This will direct resources to

productive investigations and avoid needless

contacts with persons not required to file .

This effort is particularly significant in helping

to close the estimated "compliance gap" referred to in the IRS' recent report, "Estimates

of Income unreported on Individual Income

Tax Returns . "

Special efforts will be made to identity and

contact most delinquent taxpayers within six

months after the return due date . And, to inform individuals better about filing requirements, the IRS will provide a document containing basic filing criteria in return delinquency notices mailed to taxpayers .

Child Support Obligations

As a result of the Social Services Amendment

of 1974, Internal Revenue Code section 6305

empowers IRS to collect delinquent child

support payments on behalf of certain state

agencies .

IRS collection may be used only for cases in

which a court-ordered child support obilgation is delinquent and an assignment of support rights has been executed as a condition

of eligibility for Aid to Families with Dependent Children .

After state collection resources have been

exhausted, applications are made through

the HEW Office of Child Support Enforcement

for IRS collection assistance. Once referred

to IRS, delinquent child support accounts are

collected the same as delinquent taxes.

Offers in Compromise

Since 1831 the Treasury Department has

been authorized 10 compromise liabilities

owed to the United States.

The offer in compromise procedure is used

as a tool to effect maximum collection in situations where the liability is not collectible in

full or there is doubt as to the correctness of

the liability . In 1979 the Collection Division

processed 2,016 offers in compromise .

international The Office of International Operations (010 )

Operations

curity, laws in the U .S. Possessions and Puerto Rico and the income tax laws affecting

Puerto Rican residents with income from

sources outside of Puerto Rico .

010 maintains a network of 14 foreign posts

managed by revenue service representatives

(RSRs) who provide the principal contact between the IRS and Americans living abroad .

These offices have multi-country responsibility, except in Canada, and are located in

American Population centers to assure maximum impact on taxpayer compliance and

convenient access for American citizens to

obtain tax assistance .

DID'S posts in Bonn, London, Paris and

Rome Cover Western Europe and North Afriis responsible for U .S . tax matters relating to

U .S. citizens residing in foreign countries and

foreign entities doing business in the U .S . It is

also concerned with U.S . businesses controlled by foreign interests and assists in the

overseas examination of multinational corporations . Further, 010 assists the U.S. Competent Authority in the administration of tax

treaties. 010 also administers the social so010 Foreign Posts

TehrarSingapore

Manil a

Tokyo Sidne y

Tehran teIntonal in., than n Iran. -ng ten,aa.dly

conducted tho, FlOrn' War haad-rent aince Jar.a, 1979.

ca . The post in Johannesburg services Africa . south of the Sahara . The Mexico City,

Caracas and Sao Paulo posts are assigned

Mexico, Central America and South America,

while the Ottawa post handles Canada. The

offices in Tokyo, Manila, Singapor e- and Sydney carry out tax administrative activities in

Japan, Southeast Asia, Australia and New

Zealand .

The RSRs maintain personal contacts with

foreign tax authorities, foreign government

officials, the Department of State and other

U.S . agencies, as well as American communities abroad . They also serve as a liaison

with foreign Competent authorities, in tax

treaty matters, for the U .S. Competent Authority .

Examination, Collection and Criminal investigation activites take place primarily in the

U .S ., even though 010 sends revenue

agents, tax auditors and criminal investigators abroad to conduct investigations. Collec-

,ion cases that cannot be settled through correspondence are sent to the foreign posts for

personal contact by the RSRs or by the revenue officers assigned to the posts .
M

Employee

Plans/

Exempt

Organizations

Taxpayers have received tax assistance

abroad for 26 years, and this year twenty-one

assisters were sent abroad to 150 cities in 92

foreign countries . More than 150,000 taxpayers were assisted and several hundred mernbars of the armed forces attended seven military tax schools . The armed forces participants then helped thousands of military personnel prepare their own tax returns.

Treaties

Tax treaties with other countries eliminate

double taxation, remove tax barriers to trade

and investment and help curb tax avoidance.

TheU .S . now has income tax treaties with 38

countries and estate tax treaties with 13

countries.

In 1979, meetings were held with tax officials

from several treaty countries to improve the

administration of the treaties involved . These

conferences improved working arrangements

for more effective exchange of information,

for resolution of recurring problems that arise

from conflict of U .S . and foreign tax laws and

for elimination of double taxation .

This year the IRS and the Puerto Rican Department of the Treasury established a mutual agreement procedure to resolve double taxation caseswith Puerto Rico . The IRS has

entered into a tax administration agreement

with Puerto Rico, American Samoa, Guam

and the

U.S . Virgin Islands that provides for

the exchange of taxpayer return information

and the development of mutual assistance

programs .

Some tax treaties provide for mutual collection assistance and 010 is playing an increasing role on a reciprocal basis in collecting taxes of these treaty partners from aliens

in theU .S .

The office of Employee Plans and Exempt

Organizations (EP/EO) administers the responsibilities of the IRS for employee benefit

plans and tax exempt organizations. In the

National Office these functions are handled

by the Employee Plans, Exempt Organizations and Actuarial Divisions . EP/EO field

staffs are located primarily in the seven regional IRS offices and 19 key districts.

The Employee Plans activity administers the

Employee Retirement Income Security Act

(ERISA) of 1974 with emphasis on processing determination and notification letter requests timely and providing uniform interpretation of the appropriate laws and procedures . IRS continues to coordinate the administration of ERISA with the Department of

Labor and the Pension Benefit Guaranty Corporation .

,Since the ERISA requalification determination

letter inventory decreased, focus was directed to a field compliance examination program to ensure that employee plans are

operating in accordance with the plan document and that the rights and benefits of all

plan participants are protected. Followup

continues on those plans that received determination letters before the enactment of ERISA

but failed to request a determination letter

to conform to ERISA's requirements . Those

plans that reported a minimum funding deficiency on Form 5500 series returns are being

notified of the requirements for filing Form

5330, Return of Initial Excise Taxes Related

to Pension and Profit-Sharing Plans.

Revenue Procedure 79-28, issued April 27,

1979, gives simplified instructions to employers, law firms and sponsors of plans who

submit requests for determination or notification letters designed to conform the plan to final regulations under ERISA . As a result,

adopters of approved master and prototype

plans, field prototype plans, pattern plans

and basic plans need no longer submit for

IRS approval amendments made only to conform plans to final regulation&

An expanded revenue ruling program for Employee Plans was implemented during 1979

to identity all pre-ERISA revenue rulings that

were invalid or misleading under present law .

Revenue rulings are being prepared to revoke, obsolete, restate or modify those in

need of updating .

The Revenue Act of 1978 provided for Simplified Employee Pensions (SEP) for calendar

years beginning after Dec . 31, 1978 . The IRS

has been involved in issuing instructions for

adoption of SEP$ and developing a model

agreement for use by the public .

During the year,5 regulations and 22 revenue rulings and Procedures were issued, as

well as 2,235 National Office opinion letters

on master and prototype plans dealing with

Keogh plans, corporate plans and individual

retirement accounts and annuities.

The IRS devoted an average of 751 field professional positions to carry out employee

plan responsibilities. Advance determination

letters were issued on the qualification of

pension, profit-sharing and other employee

benefit plans . Examinations were conducted

to determine the qualification of plans in op.

eration and to verity plan contribution deductions. During the year 141,263 determination

letters were issued on corporate and self-err,

ployed plans for a decrease of 34 percent

from 1978 .

The Exempt Organizations activity determines

the qualifications of organizations seeking

tax-exempt recognition, determines their private foundation status and examines returns

to ensure compliance with the law. The number of active entities on the exempt organiza .

tions master file (EOMF) increased from

810,048 in 1978 to 824,536 in 1979 .

This year,7 regulations, 25 revenue rulings

and procedures, 340 technical advice memoranda and 21 announcements were issued or

revised . An average of 433 field professional

Positions were used to examine 22,371 exempt organizations returns . Also, 1 14 field

professional Positions and 117 National Of

.

lice technical positions were used for 50,568

applications, reapplications and requests for

rulings on proposed transactions from organizalions seeking a determination of tax-exempt status or ofthe effect of organizational

or operational changes on their status . The

development of the new formulas to select

certain exempt organization returns for examination has been completed, using the taxPayer compliance measurement program

CTCMP) file augmented by EOMF data. The

result was improved formulas for selection of

Internal Revenue Code subsection 501 (c)(3)

public charities and IRC 501 (c)(4) organiza .

tions for examination .

The IRS is developing

8 TCMP survey for all

IRC 501 (c) subsections through (cX8) having

more than 5,000 filers. The survey, involving

examinations of 20,000 returns filed in 1980

through 1983 will begin in October 1980.

Additional guidelines have been published

providing instructions and procedures to examiners for the pre-examination of churches

and related organizations . Guidelines were

also issued providing uniform procedures for

the identification, investigation and examination of organizations employing questionable

claims of tax-exempt church status .

In 1979, IRS concluded a nationwide review

of the exempt status under IRC 501 (c)(4) and

501 (c)(7) of certain homeowners associa

.

tions. The IRS advised the homeowners associations revoked under the program of the

availability of exempt status under IRC 528 .

The program resulted in 532 revocations under 501 (CX4) and 501 (c)(7) and 479 conver

.

sions to IRC 528 status .
26 Managing the 27

Tax System

Planning and

Research

During 1979 the IRS prepared a five-year

plan for resource needs as well as a plan for

significant issues contronfing tax adminisiration . Major research was done on taxpayer

opinions, ways to simplity, federal tax reporting, tax compliance and improvements to the

structure and operations of the IRS, Testimony and other information was developed for

presentation to congressional committees,

pending legislation was analyzed and statistical and other analysis was carried out .

Research Efforts

A nationwide survey of taxpayers was conducted to determine satisfaction with IRS services and to get public opinion on tax law enforcement, The results of the survey will be

available in early 1980. A study of the use of tax havens has been established to examine existing law, interagency coordination, domestic and foreign information reporting requirements, regulations,

enforcement resources and to try to determine the scope of the problem .

In 1978 the IRS began a series of studies to

determine compliance with some of the approximately 90 provisions in the Internal Revenue Code that allow taxpayers to deter certain tax consequences to subsequent years,

Since the problems associated with tax deferrals involve all types of taxpayers, the studies

deal with corporate, partnership, estate, trust

and individual tax returns . Each study will develop data concerning tax consequences and

compliance with the various deferral provisions. Some studies involve partnership tax

shelter losses in excess of at-risk basis, deferred gains on sales of personal residences,

stock basis reduced by nontaxable distributions, special estate tax valuations and the re_

capture of the new residence purchase credit

it the residence is sold within three years of

purchase . IRS also plans to study deferred

gains on installment sales, changes in accounting methods, recapture of accelerated

depreciation on certain housing projects and

at-risk limitations on losses from various business activities. A study of compliance by workers cAaiming

independent contractor status was completed, resulting in a legislative proposal to

require tax withholding on nonemployee

compensation.

Research was undertaken on the effectiveness of the information reporting system . The

studies focus on how well payers comply

with information reporting requirements and

the use of information documents in enforcement programs, as well as the feasibility of

requiring information reporting on bearer instruments. A major research report, "Estimates of Incomes Unreported on Individual Income Tax

Returns

' "

issued in 1979, presents estimates

of total i hcome individuals should have reported to the IRS but did not and the associated tax revenue loss . The estimates include

underreporting on individual returns filed and

on returns that should have been filed covering legal and selected types of illegal income.

Copies of the report, Publication 11 04, are

for sale by the Superintendent of Documents, U .S. Government Printing Office, Washington, D .C . 20402 .

Recent legislation required the Secretary of

the Treasury to study existing highway excise

tax structure and alternative tax funding

methods for the highway trust fund . As a part

of the study the IRS will examine the administrative and compliance aspects. Treasury's final report to Congress is due in April 1982.

This year the IRS completed a study of the

civil penalties in the tax law after examining

approximately 75 different penalties for not

filing tax returns and information documents,

not paying taxes timely and not reporting federal tax liability properly. The report recommends approximately 35 legislative changes

and several administrative changes to deter

noncompliance and to improve the adminisIration of penalty provisions.

Taxpayer Compliance

Measurement Program

The taxpayer compliance measurement program (TCMP) is the IRS' basic research effort

to estimate the nature and extent of tax law

compliance. Random samples of returns filed

in different tax areas are examined to develop

data used to plan enforcement programs and

to improve Computer selection of returns for

examination, to allocate IRS resources, to

formulate taxpayer information programs and

to develop and improve tax return forms and

instructions.

This year the IRS completed field examinations of a sample survey of 1976 individual

returns and undertook a project to determine

how well TCMP examinations disclose income covered by information return reporting . Examinations continued on the third survey of corporations with assets up to $1 o mil .

lion and the process for selecting returns for

the first TCMP Survey of employee benefit

plans was started ,

Productivity

This year, IRS established a fund to sponsor

studies and tests of ideas to increase productivity . The IRS also established a program to

encourage cost savings SO that managers

who institute them can put 50 percent of the

savings generated in their function's financial

plan for a one-year period. The IRS identified

steps that should save about $21 million

when fully operational . For example, filing requirements were modified for employers

maintaining corporate pension plans with

fewer than 100 employees so that a full return need only be filed once every three

years, with a short registration form other

years,

Publishing Statistics

The annual Statistics of Income (SOI) publications provide a variety of statistical data reported on tax returns .

SOI Publications issued in 1979 included pre

.

liminary reports for individual income tax returns for 1977 and corporation and uninco,

porated business returns for 1976 ; complete

reports for individuals for 1976, unincorporated businesses for 1975 and corporations for

1974 .

This year the IRS completed an SOI report on

estate tax returns filed in 1976. These data

are compiled every four years . A sample of

the 1976 returns provided the basis for a

study for the Treasury's Office of Tax Analysis (OTA) to show the relationships of wealth

and income of decedents and their heirs as

reported on income tax returns.

This year the IRS provided the first SO] sup.

Plemental report in several years giving information by country on foreign income and

taxes of

U .S corporations claiming a foreign

tax credit ,

Statistics of Income publications may be purchased from the Superintendent of Documents, U .S . Government Printing Office,

Washington,D .C . 20402.

Tax Models

Tax models are used primarily to respond to

requests for tabulations of tax return data .

Five basic models cover individuals, corporations, sole proprielorships, partnerships and

estates and consist of computer programs

used with special SOI files of the most cur

.

rent data .

Under the federal-state exchange program,

state governments can obtain copies of the

individual income tax model file for tax administration purposes . The same file, with all

taxpayer identifying information removed,

can also be purchased by the public from the

National Archives . The public may also obtain a companion file resulting from a special

study done for OTA on the sales of capital

assets by individuals.

Projecting Returns Filed

For planning and budgeting purposes, na

.

tionwide projections are made of the number of returns to be filed . Annual updates incorporate economic and demographic changes

and the effects of tax law changes and filing

patterns .

The number of primary returns is expected to

grow from 130 million in 1978 to 164 million in 1990, This increase of 26 .3 percent reflects the expected growth in population and

economic activity .
28

Resources

Management

Legislative Activities

The IRS analyzes legislative proposals affecting the IRS and determines their administrafive implications. Once legislation is enacted

a plan for implementing each provision is

coordinated with appropriate IRS offices to

assure that all provisions are implemented .

During the year, 17 implementation plans

were developed, including plans for major

1978 legislation such as the Energy Tax Act,

the Foreign Earned Income Act and the Revenue Act. The Revenue Act alone required

more than 500 separate actions to implement

the more than 250 changes in the tax law .

Resources Management is responsible for fiscal and facilities management, personnel,

training, centralized services, employment

policy, security standards and evaluation and

management improvement.

Centralized Service

s

This year a Centralized Services organization

was established to consolidate computer terminals, microfilm, files and clerical functions

in the district offices servicing Examination,

Collection, Taxpayer Service, Criminal Investigation and Appeals offices.

Labor-Management Relations

The National Treasury Employees Union and

IRS have agreed to negotiate one master labor agreement to cover the approximately

70,000 IRS employees represented by the

union. Final agreement has not yet been

reached. A labor relations course is being given in regional offices to provide technical skills to

field office personnel to carry out contract

administration . The course emphasizes settlement of grievances and unfair labor practices.

The IRS publishes The Labor Relations Report, a biweekly newsletter for executives and

personnel staffs, highlighting those developments likely to affect the overall management

of the IRS . It also provides personnel staffs

with specialized information needed in dayto-day contract administration and in dealing

with a union .

Paraprofessional Positions

Several paraprofessional occupations have

been established in IRS to perform lowergraded, less complex work formerly done by

higher-graded professional and technical employees. This has provided new avenues of

employment for persons with less than the

full range of professional or technical qualifications and established a bridge to lei clerical and other lower-graded employees have

the opportunity to advance to professional

and technical occupations.

During 1979, IRS placed almost 3,000 employees in paraprofessional positions. This

provided increased upward mobility opportunities and resulted in saving several million

dollars over the cost of a similar number of

professional and technical positions .

Awards for Incentive

Many employees received recognition for

their outstanding contributions under the IRS

incentive awards program . They included

one Meritorious Service Award, 11 Commis

.

sioner's Awards, 29 Special Achievement

Awards of $1,000 or more and three special

recognition awards for exposing bribery

schemes. Also, William

E . Mulroy, Director of

the Internal Security Division received the

1979 Association of Federal Investigators En- forcement Award .

Fifty employees received Presidential Letters

of Recognition for employee contributions resulting in benefits of $5,000 or more or for

exceptional achievement in specific programs.

Under the incentive awards program, 7,727

people were recognized, and the IRS realized about $1,869,000 in benefits during 1979.

Jobs for the Handicapped

The IRS hired 421 severely handicapped err'

ployees this year increasing this part of the workforce to 2,122 . There are now 490 legal

.

ly blind IRS employees, 159 of whom are taxP

E

payer service representatives (TSRs) . Some

blind TSRs have moved to the Taxpayer Ser

.

vice Specialist (TSS) Position, which offers

greater advancement opportunity, and others

have been promoted from TSS to group manager. The IRS nominee for the Outstanding

Federal Handicapped Employee of the Year

is Edwin Tylee of the Brookhaven Service

Center .

Training

This year the IRS developed training programs to implement provisions of the Civil

Service Reform Act, including a major review

of all levels of management training . A study under the guidance of a board of national and field executives was initialed to

assess the effect of changes in IRS duties

and recruiting on the training program. Consideration will be given to future instructional

technology, the need and location of training

centers, development of course materials and

necessary staff changes .

During the past year 725 men and women at

.

tended three training schools at the Federal

Law Enforcement Training Center in Glynco,

Ga . A program has been developed to train se

.

nior examiners as petroleum industry specialists. Training courses are also being developed for other industry specialist areas such

as aerospace, air transportation, chemicals,

construction, data Processing, insurance,

Pharmaceuticals, railroads, tractors and other

heavy equipment, utilities and forest prod .

ucts.

Special agents, revenue agents and taxpayer

service employees received training about le.

gal requirements and prohibitions under the

laws governing disclosure of information . A

disclosure orientation course has been developed for use as part of all basic training and

annual refresher training courses and disclosure officers were trained to improve the am .

ployees' ability to deal effectively with the

public in Freedom of Information and Privacy

Act matters .
9H

Collection Division and Chief Counsel personnel were given training in the provisions

of the bankruptcy law, which was completely

revised by Congress late in 1978 .

Audiotapes on the rules of conduct were developed for visually handicapped employees

and tapes of various taxpayer service

courses, were developed for use by blind amptoyees . A videotape that shows data transcription instructions in sign language was

developed to provide training for deaf data

transcribers .

Training assistance also was provided state

and local revenue agencies . Almost 2,000

employees from various state and local governments have received training assistance in

financial investigative techniques, and procedures used in investigation of white collar

crime .

More than 600 IRS employees attended wrilIng workshops to improve the quality of public correspondence .

Logistics Support

In order to comply with an Executive Order

requiring a 20 percent reduction in energy

use by 1985, a joint IRS/GSA task force has

been formed to investigate energy conservation in the IRS service centers.

The task force identified potential annual savings of up to $708 000 in utility costs after

surveying the And~ver, Atlanta, Fresno,

Memphis and Ogden Service Centers . Implementation plans are underway to help produce a net reduction Servicewide of approximately 30 percent in the consumption of energy during 1980 in comparison with the

1975 base year .

over two-thirds of the Internal Revenue Manual has been converted to a new electronic

composing system . Under this system, updates to the Manual can be composed, printad and distributed in three to 10 workdays

depending on the number of pages, less than

a quarter of the time required previously ,

The cost of express mail systems was reduced by approximately $300,000 through

use of IRS courier service and better transportation methods. Records disposition released space and equipment valued at

$5,608,000 . Some 170,500 cubic feet of records were destroyed and more than 371,500

cubic feet were retired to federal record centers.

Savings of over $800,000 were realized

through the release of space and a reduction

of utilities, guard services and space rental

rates for released space . More economical

use of the long distance federal telecommunications system resulted in savings of $1 .3

million .

An IRS household goods relocation system

was introduced that increases efficiency and

has saved approximately $100,000 since implemented.

The IRS experienced a rate of 3 .2 disabling

injuries per million staff hours worked in calendar year 1978 . IRS employees drove 121

million miles with an accident frequency rate

of5 .5 accidents per million miles driven. Both

the disabling injury and motor vehicle accident rate reflect slight reductions from 1977

and continue to be among the lowest of all

federal agencies .

Equal Employment Opportunity

The IRS established the position of Assistant

to the Commissioner (Equal Opportunity) to

give emphasis to equal opportunity and affirmative action efforts .

Data

Services

Many IRS offices this year observed special

events, such as Black History Week, Hispanic

Heritage Week, Women in Government

Month, and Asian/Pacific American Week .

New program guidance was issued in an

EEO handbook for IRS managers and special

issuances were made on evaluation of EEO

performance and collateral EEO duties. Affirmative action plans were prepared in each

office based on assessment of local needs

and problems.

From July 1978 through July 1979, total fulltime regular employment in the IRS showed a 1 .9 Percent decrease. However, during that

same time, the number of women decreased

only .5 percent and the number of minorities

increased2.5 percent. Women in positions at

GS -13 and above increased from 4 .5 percent to 5 .3 percent and minorities from 5.8

percent to6.5 percent. There were gains in

the employment of women and minoritiesin

almost all IRS major occupations, including

attorney, criminal investigator, revenue agent

and appeals officer.

This year the IRS awarded contracts of

$1,521,000 to minority or disadvantaged

owned businesses exceeding its $1 million

gbal by 52 percent.

The Office of the Assistant Commissioner for

Data Services develops, implements and

evaluates computer systems, programs and

hardware requirements of the IRS and is responsible for the operations of the National

Computer Center in Martinsburg, W . Va ., and

the Data Center in Detroit, Mich .

During the past year, Data Services has been

involved in major changes to the Form 1040

processing system brought about by the Revenue Act of 1978 .

National Computer Cente

r

The National Computer Center uses eight

computer systems and three computerized

microfilm systems to process the individual

business, exempt organization, employee

plans and individual retirement account master files for the nation . 3

1

The computer center operates 24 hours a

day, seven days a week and maintains recip.

rocal accounting with each of the len IRS

service centers. As of August 1979 the number of taxpayer accounts on the individual

master file had grown to 11

4 .2 million, a2.9

percent increase over the same period in

1978. The business master file had 21 .3 million accounts - 24 .1 percent above 1978.

There were also 1 .1 million for the exempt organization master file, 1 .3 million for the amPloyee Plans master file and 227,000 on the

individual retirement account master file .

Data Center

The IRS Data Center performs the IRS' nonmaster file data processing operations . Instal .

lation of a new computer system is scheduled

for completion the last quarter of calendar

year 1979. The increased capacity and so .

phistication of this new system will enable the

Data Center to replace the two existing sys .

tems, and to serve as a teleprocessing center for the IRS . A new filming system has been installed at

the Data Center to Produce microfiche of

700,000 employee benefit plan returns each

year. This filming system is designed to provide immediate access to copies of these returns at IRS service centers and the Depart .

ment of Labor as mandated by law. This sys.

tem includes one of the largest applications

of full reversal processing of film from quality

source documents . Full implementation early

next year will result in the production of ap- proximately 100,000 microfiche per month .
32

Technical

Activities

The IRS tax ruling program consists of letter

rulings, technical advice and published revenue rulings . During the year IRS acted on

18,770 requests for changes in accounting

methods and periods, responded to 8,719 requests for technical advice, and issued 450

revenue rulings and revenue procedures ,

A letter ruling is a written statement issued to

a taxpayer interpreting and applying tax law

to a specific set of facts . Such a ruling provides guidance concerning the tax effects of

a proposed transaction . Letter rulings are not

precedents and may not be relied upon by

taxpayers other than the recipient .

Technical advice is issued by the National Office at the request of a district office to provide guidance on the proper application of

the tax laws to specific facts in connection

with the audit of a taxpayer's return or claim

for refund or credit .

A revenue ruling is an interpretation of the

tax laws published in the weekly Internal Revenue Bulletin to inform and guide taxpayers,

practitioners and IRS personnel .

Updated Procedure

During 1979 the IRS published Revenue Procedure 79 - 45, which revised the procedures the IRS will follow in issuing rulings and

determination letters and in entering into

closing agreements . This revenue procedure

also contained instructions for taxpayers to

follow when requesting such rulings and determinations . Revenue Procedure 79 - 46

revised the procedures for furnishing technical advice to district directors and Appeals

offices and informed taxpayers of their rights

when such advice is requested .

Internal Revenue Bulleti n

The weekly Internal Revenue Bulletin announces official rulings and procedures of

the IRS and published Treasury Decisions'

Executive orders, tax conventions, legislation,

court decisions and other items of general interesi . Bulletin contents of a permanent nature are consolidated semiannually into CuRevenue Rulings and Revenue

Procedures Publishe d

Type Number

Administrative 1 8

Employment taxes 14

Estate and Gift Taxes 48

Excise Taxes 40

Exempt Organizations 2 5

income Taxes 28 0

Employee Plans 22

Tax Conventions 3

Total 450

mutative Bulletins . Weekly and semiannual issues are available to the public through the

Superintendent of Documents, U .S . Government Printing Office, Washington, *D .C .

20402 .

During 1979 the Bulletin included 388 revenue rulings, 62 revenue procedures, 26 Public Laws relating to Internal Revenue matters

and 17 committee reports, 76 Treasury Deck

sions containing new or amended regulations, 36 delegation orders, 2 Treasury Department Orders, 19 notices of suspension

and disbarment from practice before the IRS,

270 announcements of general interest and 4

court decisions .

Making Rulings Publi c

The Tax Reform Act of 1976 provided that

IRS rulings and technical advice memoranda

generally be opened to public inspection atfar the deletion of the taxpayer's identity,

trade secrets and confidential commercial

and financial information .

Rulings and technical advice requested after

Oct. 31, 1976, are usually made available

within 90 days after they are issued to taxpayers . Some 25,000 of the approximately

83,000 issued in answer to requests made

before Nov, 1, 1976, were made available to

Inspection

33

Requests for Tax Rulings and Technical Advice (Closings)

Subject

Total

Administrative Provisions

Changes in Accounting Methods

Changes in Accounting Period s

Earnings and Profits Determination s

Employment and Self-Employment Taxes

Engineering Questions

Estate and Gift Taxes

Excise Taxes

Individual Income Tax Matters

Corporation Tax Matters

the public in 1978 . During 1979, the remaining 58,000 determinations written in the past

were made available to the public, marking

the end of the past rulings release program .

The Inspection Service's internal audit and

internal security programs aid IRS managers

in maintaining the highest levels of efficiency

and integrity .

Internal Audit

The Internal Audit Division appraises IRS operations to measure compliance with management policies, to determine whether procedures are in accordance with law and regulalions and to ascertain whether programs

are carried out effectively, efficiently and with

integrity.

Audit emphasis is placed on IRS activities

considered to be high-risk or having significant impact on taxpayer service and revenue

collection. High priority is given to reviewing

controls for safeguarding of tax information

and assuring fair and equitable treatment of

taxpayers .

Taxpayers' Field

Total Requieft Request s

27,489 26,156S 924

60 35 25

6,842 6,842

11,928 11 .928

1,268 1,268

643 389 254

148 89 59

439 309 130

196 121 75

1,864 1,737 127

4,101 3,847 254

Coordinated audits provide uniform coverage

in a representative number of offices to evaluale a program on a national or regional basis, These audits give managers a better perspective on how their functions are operating, permit nationwide corrective action, it

necessary, and result in more effective use of

audit resources.

Management actions on Internal Audit reports resulted in better service to taxpayers,

strengthened controls and improved operations resulting in measurable savings and additional revenue estimated at $302 n-tillion .

Abstracts of Internal Audit findings are distributed monthly to IRS officials to identity operational areas that may need increased at.

tention . Periodic reports are made to top

management on the implementation and effectiveness of actions taken on GAO reviews

of IRS activities.
34

Internal Security

The Internal Security Division protects the integrity of the IRS by investigating high-risk areas and alerting managers and employees to

integrity hazards .

The Division investigates complaints of criminal misconduct affecting IRS employees or

operations and persons who attempt to bribe,

threaten or assault IRS personnel . It also inveitigates the unauthorized disclosure of tax

information by employees or practitioners

and other charges against tax practitioners .

The Division also investigates IRS job applicants and conducts special investigations

and inquiries for the Commissioner and the

Secretary of the Treasury .

Indications of fraud, embezzlement, or other

wrongdoing by IRS employees are investigated thoroughly. During the year possible

breaches of integrity by 134 employees and

110 other individuals were investigated . Of

the investigations begun into these possible

breaches, 28 investigations were completed

in 1979. As a result 23 employees and 11

others were cleared of allegations of impropriefies, while actions were taken or are

pending against5 employees.

During 1979 Internal Security inspectors artested or were responsible for the indictment

of 61 taxpayers and tax practitioners and 29

employees or former employees. During the

year, 97 persons were convicted or pleaded

guilty . Of these, 38 convictions were for bribery, 16 were for assault and the remainder involved such criminal charges as conspiracy

to defraud the government, obstruction of

justice, subscribing to false returns, disclosure of confidential tax information and ernbezzlement ,

Bribery Awareness

The Division increased the number of bribery

awareness presentations to IRS employees

expanding them to include videotapes that

realistically portray bribery situations IRS employees may encounter .

Employees reported 246 possible bribery attempts resulting in 53 arrests or indictments .

Assaults and Threats

Assaults and threats against IRS employees

declined by2.2 percent from 465 in 1978 to

455 in 1979 .

Internal Security protects IRS employees

threatened or assaulted while performing

their duties and seeks vigorous prosecution

of these cases by U .S . Attorneys . In instances where prosecution is declinedusually in verbal threat cases without physical assault-an inspector, with the approval

of theU .S. Attorney, contacts the alleged assailant to inform him or her of applicable federal statutes concerning assaults or threats

on government employees . The person also

is advised that repetitive acts could result in

prosecution .

Checking the Workforce

The Division completed 12,696 conduct investigations of employees during the year

and police record checks were conducted on

all persons considered for temporary appointments.

These investigations and record searches resulted in the rejection of 98 job applicants

and disciplinary actions, including dismissals,

suspensions, reprimands, warning or demotions against 632 employees. Also, at the request of the Inspector General and of the Office of the Secretary of the Treasury, the Division conducted special investigations involving employees of other Treasury bureaus.

While some investigations of IRS employees

resulted in criminal prosecution or disciplinary action, in many cases employees were

exonerated of accusations of misconduct .

Chief

Counsel

The Chief Counsel, an Assistant General

Counsel of the Treasury Department, is the

chief legal officer for the IRS and is a member

of the Commissioner's executive staff . As'

such, the Chief Counsel advises the Commissioner on matters pertaining to the administration and enforcement of the internal revenue laws and related statutes, as well as on

nontax legal questions .

The Chief Counsel is assisted by a Deputy

Chief Counsel (General), a Deputy Chief

Counsel (Litigation), a Deputy Chief Counsel

(Technical) and seven Regional Counsels .

The Office of Chief Counsel employs over

900 attorneys making it, next to the Department of Justice, the largest law firm in the

country. These attorneys are located in the

National Office, the seven Regional Counsel

offices and 45 District Counsel offices .

Approximately 40 percent of attorney time is

spent handling litigation in the Uniied States

Tax Court. The attorneys also advise the IRS

and assist the Department of .Justice on refund suits, criminal tax cases, suits seeking

the disclosure of files and documents of the

IRS, collection suits and nontax litigation involving the IRS in federal and state courts .

Administrative Services

The Administrative Services Division supervises matters relating to budget, administration and management in the Office of Chief

Counsel . The Division coordinates the recruitment program for the Chief Counsel's office, operates the summer employment program for legal interns and provides opportunities for Counsel attorneys to participate in

law school, bar association and in-house

training c6urses.

Under the aegis of the Division, an equal ernployment opportunity advisory comrrdftee

and a federal women's program advisory

committee, composed of representatives

from each division in the National Office, assisl in the administration of the Chief Counsel's equal opportunity program ,

The Division completed a feasibility Study on

implementation of a computerized case

tracking and management information system . The results of the study were presented

and favorably received by the IRS' ADP pollcy/resource board and departmental and

GSA approval is being sought . This system

will be phased-in between 1981 and 1983 .

Planning is also underway for an interim automated system to monitor the effectiveness

of Revenue Procedure 78-9 . The interim system will fill the gap between the current manual monitoring procedures and the case

tracking and management information System. Decentralization of the Reports and Information Retrieval System (RIRA) for refund

suits should be completed during 1980.

Criminal Tax

Attorneys in the Criminal Tax area handle all

criminal tax legal matters for the IRS, furnish

legal advice to the Criminal Investigation Division, review criminal tax cases to determine if

cases warrant prosecution, and coordinate

criminal tax prosecutions with the Department of Justice . Assistance is provided to

United States Attorneys in criminal tax trials

upon request, and to the Tax Litigation Division in coordinating the application of the civil fraud penalties. Criminal Tax personnel also

Receipt and Disposal of

Criminal Tax Matters

Prosecution Cases Received

From Criminal Investigation

Total Opened 3,338

Total Closed 3,06

1

Counsel Declined 376

Department of Justice Declined 424

U .S . Attorney Declined 42

5

Prosecutions Completed 1,83

6

Opinions

Pending Beginning

Total Requested

Total Rendered 11

2

Pending End 35
coordinate disclosure matters, as well as

Freedom of Information Act and Privacy Act

matters, in cases where criminal action is anticipated or has been undertaken . For 1979

there were 2,883 referrals by Counsel for

prosecution and 20,715 staff hours were

spent on legal assistance to the Criminal Investigation Division .

This year the Supreme Court decided in United States v. Caceres 99 S. Cf . 1465 (1979)

that it was not a denial of due process to fail

to follow administrative regulations governing

the IRS' conduct in consensual monitoring situations . Caceres sought to exclude evidence of his conversations with a revenue

agent whom he attempted to bribe . The revenue agent was carrying a concealed recording device the use of which had not been given the leyel of approval required by the regulations for nonernergency situations. The

Court found the regulations in question to be

"housekeeping" regulations upon which Caceres was not entitled to rely in his dealings

with the IRS ,

Disclosure Litigation

Attorneys in the Disclosure Litigation Division

handle all Freedom of Information Act appeals to the IRS . The Division provides legal

advice to the IRS on issues arising under the

Freedom of Information Act, the Privacy Act 1 1974, and the confidentiality provisions of

the Internal Revenue Code. Additionally, the

Division handles any requests or demands for

testimony or production of IRS records made

to National Office employees in connection

with any proceeding before any court, administrative agency or other authority.

Attorneys work closely with the Disclosure

Operations Division of the IRS, and coordinale with the Department of Justice all litigation arising under the Freedom of Information

and Privacy Acts, including recommendations about defense or settlement of suits and

appeals of adverse decisions.

Much of the 1979 litigation concerned taxpayer attempts to gain access to civil and

criminal investigatory files through the Freedorn of Information and Privacy Acts rather

than using established discovery procedures.

Also, employees and their union representatives frequently have litigated under these

acts in attempting to obtain access to personnel records of other employees and management documents for use in grievance and

other personnel proceedings.

EP/EO

The Employee Plans and Exempt Organizations Division provides legal assistance to the

Office of the Assistant Commissioner

(EP/EO) in the issuance of letter rulings and

determinations to taxpayers, technical advice

to IRS personnel and revenue rulings and

revenue procedures . The Division also provides legal assistance to other divisions in

Chief Counsel in determining litigating positions and in coordinating these positions with

the ruling positions of the IRS on employee

plans and exempt organizations matters . In

EP/EO matters, the Division represents the

Commissioner and IRS in tax legislative matters; provides the Treasury Department with

technical assistance and expertise in the development of internal revenue legislation; furnishes assistance to congressional staffs in

the drafting of committee reports; conducts

hearings on proposed regulations, and assists in the preparation and review of certain

tax forms, instructions and publications.

Employee Plans and

Exempt Organizations

Division Cases Receive

d

Type Of can

Revenue Rulings 41

Letter Rulings 2

4

Technical Advice 42

Other Advice14

Legislation3

Regulations 34

Miscellaneous5

Total 163 I

During 1979, the EP/EO Division developed

regulations implementing the Employee Retirement Income Security Act of 1974

(ERISA) and the Tax Reform Act of 1976 .

Regulations were published in proposed,

temporary or final form on such matters as

the requirements for establishing employee

stock ownership plans (ESOPs) and making

of loans, ESOP requirements for taxpayers

electing 11 percent investment credit, funding rules and coverage and eligibility rules for

minimum participation standards for employee plans and definition of and minimum distribution rules for private foundations.

General Legal Services

The General Legal Services Division represents the IRS in labor cases, such as impasse

proceedings, unfair labor practices, arbitralion hearings and serves as a member of and

counsel to management teams negotiating

individual and multi-unit labor agreements .

The Division also provides, where appropriate, assistance to IRS employees and officials

who are sued for damages in actions taken in

the due performance of official duties. These

attorneys also represent the IRS in adverse

action and discrimination proceedings, and

the Director of Practice in the Office of the

Secretary of the Treasury concerning disciplinary actions brought against tax practitioners. Advice is provided to the IRS concerning

government contracts, tort claims, forfeitures,

Inspection Service actions and other matters

not directly involving federal taxes . The director acts on behalf of the Chief Counsel as the

Deputy Counselor for rendering advice and

guidance to the IRS and Chief Counsel's office on conflict of interest and issuing authoritative interpretations of the employee

rules of conduct. The director is the designated agency official for the IRS and Chief

Counsel's office under the Ethics in Government Act of 1978 .

The attorneys tried 11 4 cases with 862 hours

of trial time for 1979. Ail litigation in the personnel and labor areas increased substantially this year and questions involving matters of

ethics rose sharply due to the enactment o

f

I

he Ethics in Government Act of 1978 . Therefore, the Division took on the responsibility of

reviewing the financial disclosure statements

of IRS and Counsel officials required to file

under that Act . 3

7

EM

km

Elm

1975 1976 1977 1978 1979

Ii
General Litigation Cases Received General Litigation

Types of CasesRegions :

Bankruptcy Act

1978 1979

The General Litigation Division furnishes legal advice to the IRS in connection with the

collection and internal assessment procedures relating to federal taxes and assists th e

Proceedings 2,194 2,104 Department of Justice in the prosecution an d

Miscellaneous

Insolvencies,

Decedents' Estates

defense of suits to collect taxes, suits to recover erroneous refunds, proceedings under

the Bankruptcy Act and other insolvencies,

civil enforcement of summonses and injunctions and declaratory judgment actions . It iurSuits to Collect Taxes 750 633 nishes legal services and informal advice t o

Section 2410 (28 U.S .C 241 0) :

Interpleaders 274

Others 23 7

Injunctions 163 146

Disclosure and Testimony 609 46 1

70 70

424 386

302

243

Summons Cases 6,506 6,799

Erroneous Refund Suits 34 3 1

Miscellaneous

Court Cases 1,025 1,357

IRS district offices, and to the Assistant Commissioners for Compliance and for Taxpayer

Service and Returns Processing.

On Nov . 6, 1978, the Bankruptcy Reform Act

of 1978 was signed into law, effective Oct . 1,

1979. The Act is a comprehensive revision of

bankruptcy law. Over the past four years personnel of the Division assisted in the developmerit of this important legislation .

The Bankruptcy Act will have a profound impact upon the United States' priorities and

right of collection of tax debts from the bankrupt taxpayer both in and outside bankruptAdvisory Opinions 4,774 4,870 cy. It will also cause substantial changes i n

Tax Return Preparers:

Advisory Opinions 8 12

Court Cases 1 7

Total All Regions 17,069 17,421

the present collection procedures in bankruptcy proceedings.

Interpretative

The Interpretative Division provides legal asNational Office : 1978 1979 sistance to the Assistant Commissioner for

Appeals 168 226

Advisory 392 324

Technical in the issuance of letter rulings to

taxpayers, technical advice to IRS personnel

and revenue rulings and revenue procedures

to guide the general public . Interpretative

Other Centralized Cases' 11 13 also provides legal assistance to other diviTotal National Office -S71 663

Total All Regions &

National Office "17,640 17,994

sions in the Chief Counsel's office in establishing litigating positions and in coordinating

these positions with the ruling positions of

the IRS except in cases involving ernployee

plans, exempt organizations and certain genInciuctes Railroad Reorganizations and Actions for In- eral litigation matters .

junctions ai or Dedaratory Relief .

A Revised, international operations no longer handled i n

the National office . Legislation and Regulation s

The Legislation and Regulations Division represents the Commissioner and the IRS in tax

legislative matters, other than those relating

to employee plans and exempt organizations .

Division attorneys also provide the Treasury

RE

Receipt and Disposal of General Litigation Cases

National and Regional

Statu s

Pending October 1, 1978

Received during yea r

Disposed o f

Pending September 30, 1979

Court Non-Court Total

-10,115 P1,736 11,851

12,317 5,667 17,984

11 .991 5,731 17,722

10,441 1,672 12,11 3

P Revised, 18 cases transferred from Non-Court status to court status .

Department's Assistant Secretary for Tax Policy with technical assistance in developing

and drafting internal revenue legislation and

furnish assistance to congressional staffs in

drafting committee reports on tax legislation .

Legislation and Regulations Division attorneys draft proposed regulations, other the n

regulations that involve employee plans and

exempt organizations and represent the IR s

in negotiating and drafting tax treaties wit h

foreign governments. Working closely with

IRS officials, attorneys participate in preparing and reviewing tax forms and instructions, hold hearings on proposed regulations,

evaluate suggestions by IRS personnel and

others for regulatory changes, and review

publications issued for the guidance of taxpayers and IRS officials .

During 1979 the Division developed regulations to implement the Tax Reform Act of

1976 and began to develop regulations to irnplement the Revenue Act of 1978, the Energy Tax Act of 1978 and the Foreign Earned

Income Act of 1978 . A substantial number of

these and other projects were published either as proposed, temporary or final regulations, These projects included regulations relating to the targeted jobs lax credit, residential energy credit, investment credits for regulated public utilities and movries, group term

life insurance with permanent benefits, arbitrage bonds, definition of 'airport' in the mu.

nicipal bond context and LIFO inventory conformity requirements . Other regulation

projects concerned limitation of losses to

amounts at risk, real estate investment trusts,

foreign tax credit, exclusion and deduction

for taxpayers living and working abroad, investments in U.S . property by controlled foreign corporations, original issue discount on

short-term obligations and bad debts reserves for savings and loan associations filing

consolidated returns . AJso included are farm

and real property valuation rules for estate

tax, generation-skipping transfers, advance

payments of earned income credit, exemption from excise tax for certain alcohol fuels,

reporting on bearer certificates and combined annual wage withholding.

Receipt and Disposal of Legislation and Regulations Division Case s

Pending

Type of Case 10/11/78

Legislation 94 73 112 55

Pending

Received Disposed 9/30/79

Regulations 303

Miscellaneous 6 6

Total 463

139 123 319

80 68 78

292 303 452
M

Tax Litigatio n

The Tax Litigation function provides legal services in connection with all actions brought in

the United States Tax Court . Trial of Tax

Court cases is generally the responsibility of

attorneys in the field offices. Attorneys in the

Tax Litigation function perform all legal services for the IRS in connect*n with suits

brought by taxpayers in the United States

District Courts and the Court of Claims for refund of taxes and for certain declaratory

judgments . They determine the legal position

of the IRS in such suits and make recommendations to the Department of Justice, which

handles the trial of cases .

The Tax Litigation Division in the National Office determines and coordinates the legal poRefund Litigation Cases Received

M1=

sition of the IRS to assure uniformity and

consistency in all such cases in litigation . It

also serves as legal advisor to the directors of

the Appeals and Examination Divisions . The

attorneys in the field offices serve as legal advisers to the Appeals offices, district directors, service center directors, and the Director of the Office of International Operations,

and review certain categories of Statutory notices, of refund claim disallowances, notices

of deficiency and determination letters in

nondocketed cases .

Tax Court Cases Received

UM

16,995

4 1

Tax In Litigation-Tax Court Cases

(in thousands of dollars)

All Tax Court Cv.W 8"1 Ta C~

St.to kumbw Tan land Penalitim NuMbW Taxle, WW Ps"smj u

Of In D.W- CIM. ." Det- Of in Dow.

Caft- Oft" lained Clilined od"' loaned COM Dhqxft ndnod Inhod

Pending

10/1/78 23.167 S3,262 .216 $278,537 3= $2.551 $23

Raca-d 16,995 1,037,187 11 .357 5,195 4 .969 52

Deap,sed' 12,844 591,920 S207,678 16.674 $7,976 4,248 2,970 $1,624 53 $26

Recovery Rate, 35.1% 47.8% 54.7% 49.1 %

Pending

9/30/79 27,318 3 .707,483 273,220 4 .450 4.550

6 Does not include an inventory of non-deficiency cases

consisting of 46 cases pending 10/ 1 /76, 65 receipts, 41

disposals, and 70 cases pending 09/30/79 .

2 Includes both small tax cases and other.

3 Disposal$ include casa~ tried, settled, and dismissed .

Some of the determined amounts .1. to, cases, which

were subsequently appealed .

22

4Amount determined expressed as Percentage at Amount

Asserted or Claimed . These amounts do not include proposed assessments which are agreed to py the taxpayer

at District or Appellate corderances . In the case of a

claimed ~rpaymenl the Reca~ery Rates shown brepresent the portion of the amount in dispute which was

refunded to the taxpayer .

Appellate Court Case Record

(Decisions-Refund Litigation and Tax Court Cases)

court

Plotly tor

ow Plenty

Far the AWnst th. Q.

the

reent 00-MeMed Wd

TOW No, % ".. % 1406 %

Courts of Appeals 189 144 76 .2 34 18.0 11 5.8

Onginally hied in Tfur Court -113 94 83 .2 10 8.8 8.0

District Courts 176 so 65.8 24 31 .6 2 21

1975 1976 1977 1978 1979

1975 1976 1977 1978 1979

Supreme Court 3

I Of the cases originally tried in Tax, CoUrl, the Courts of

Appeals rendered 113 opinions in 158 dockets, including

120 dockets for the government, 15 dockets against the

g0whirlment, and 23 doc,kels, partially for the government,

2 66 .7 1 33.3

20f the cases originally tried in DtStrict Courts, the Courts

of Appeals rendered 76 opinions in 91 cases, including 59

cases for the government, 27 against the governmont,

and 5 partially for the goverrunent.
42 1 Appendix

43

Tr at Court Case Record

(Opinions Rendered-Refund Litigation and Tax Court Cases)' 11

TM Cour"

Court of DItrict Strait Tso,

Action claims; couft C-es other Tou

t

1976 1979- 1978 19791 1978 1979- 1978 19791 1079 1979

Dedded in laver -Number

30

20 216 146 262 347 271 325 533 672

of G-nment -percent -63 .8% 50. 0% 62.8% 60 .3% 54 .0% 55.2% 47.9% 49 .8% 50.7% 52 .5%

Decided in to., -Number 12 15 90 69 so 62 66 65 116 127

of Taxpayer -Percent 25.5% 37.5% 26.2% 28 .5% 10.3% 9 .9% 11 .6% 10,0% 11 .0% 9 .9

%

Decided partially for the

Taxpayer and Partially

for the Goernment -Percent 10.6% 12 .5% 11 .1% 112% 35 .7% 34 .9% 40 .5% 40.2% 38 .3% 37 .6%

Total Opinions 47 4Q

4 242 ~485628 566 652 1 .051

1 .280

I Ral-led Cams are reflected as one opinion. 5 652 Tax C~rl opinions involvng 837 esses other than ,

40 opinions in Court of Claim inveNing 42 csses . Small Tax Court Caw$.

3242 opinions in District Courts involving 266 cases . 'On casestor which decisions wens entered during the

1620 Tax Court opinions inv.Wing 653 S-11 Tax Cases . fiscal year.

Tax In Litigation-Refund Suits'

(in thousands of dollars)

DIBIl courts Court of Claints To

w

status, Number Annount Assonant Number Annound AMOMO Murnber Annount Aefount

Of 1. In Of In In of In i

n

cases ofspunfai sulp castas, VfpuW SUI14 C,,,, DISpUW suit

,

Pending 10/01/78

Received

DispoaxF

Amount in SuitAmoum net

Refundeds

%Net Refunded

Penchng 9/30/79

-Number 5 5 38 27 173 219 229 262 402 481

2,775 $648,653 751 $617,705

915 84,978 165 152,422

758 228,735 123 21,905

$214,856

196,851

91 .6%

2,932 504,896 793 748 .222

$18 .842

3,526 S1,266 .358

1,080 237,400

881 250,640

S233,698

9,956 206.807

52 .8% 88.5%

3,725 1 .253,118

I Cases in Courts of Appeal arid the Supreme Court are in- 4 Amount of taxes, penalties and assessed imer~ sought

cluded under the columns representing the court of origin. as a refund,

'Disposals include cases tried, settled, and di-is-c . sThat portion of the amount sought as~ a refund . which I Amount in dispute includes claims for refund of taxes, was not refunded to the taxpayer.

ponalities; and interest, and counterclaim amounts,

Contents Statistical Table

s

Table1 . - Internal revenue collections by

sources and by internal revenue regions,

districts, states and other areas/ 45

Table 2.- Internal revenue collections by

source /52

Table Table3 . - Internal revenue collections

by principal sources . 1941 through 1979 / 54

Table 4 . -Amount of internal revenue

refunds including interest / 5

6

Table5 . -Number of internal revenue

refunds issued / 5

7

Table6 . - Overassessments of tax as the

result of examination / 57

Table7 . -Number of returns filed, by

internal revenue regions, districts, Mates and

other areas. / 58

TableB . -Returns filed, examination

coverage and results (1979) / 60

Table9 . -Returns filed, examination

coverage and results (1978) / 6

2

Table 10. -Number of returns examined by

class of tax and by internal revenue regions,

districts and other areas

/64

Table 11 . -Additional tax and penalties

recommended after examination by class of

tax, and by internal revenue regions, districts

and other areas / 65

Table 12. -Returns examined / (k6

Table 13 . -Results of collection activity / 66

Table 14 .- Civil penalties assessed and

abated / 6

7

Table 15 . -Appeals Division receipts and

dispositions of cases not before the Tax

Court / 68

Table 16 . - Appeals Division receipt and

disposition of income, estate, and gift tax

cases petitioned to the Tax Court / 6

8

Table 17 . - EP/EO tax rulings and technical

advise issued /69

Table 18 . - Determination letters issued on

ERISA employee benefit plans / 6

9

Table 19 . -Number of ED returns examined

by type of exempt organization /6

9

Table 20 .- Number of active entities on

exempt organizations master file /70

Table 21 . -Disposal of exempt organization

applications / 70

Table 22 .-Internal revenue collections,

costs, employees, and

U .S . population, 1950

through 1979 / 71

Table 23 . -Costs incurred by IRS by

activity / 7 1

Table 24 .-Costs incurred by IRS by

office / 72

Table 25 . -Personnel summary / 73

Chronological List

-Commissioners of

Internal Revenue 1862-1979 and Acting

Commissioners during transitory periods1 74

Principal Officers

-of the Interna l

Revenue Service as of September 30,

1979/76

Organization Chart / 82

Map- of Internal Revenue Service regions,

districts, and service centers / 83
Statistical Tables 45

Table I .-Internal revenue collections by sources and by Internal revenue

regions districts, States, and other areas

(in lhousands of dollars)

hib-d - 1.0-dWl~, stabs *W

od- rft~ mpfftwftd by aftW

I

P~_Wtww

*V- SM. ~ 0 bMWM M hAde)

TOW hft.0 Cr 1.

h_ W.

Wh1d .W I— " IspWr-d fth-s w h-W

T~ M*" NMm sw

BECA- FICA-

(1) m (3) (4) (s) (6) (1)

tkftws~.~ .. . .. . .. . . .. . . .. . .. . . .. . .. . . . 480,412.115 711,4471976 sasms'"I ma4ams WXnAn 2466111113 2X&OMD

NOM."Ieft R.0. .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . . . 76,2"7 15,334,401 fisggg.673 TIMIN? 50=203 71,216 sitigir

N.M (s. (C) b.~) 4 =616 W63D 3.493,1126 313,110 3.146,467 8 .337 25.912

Aug~ (M-) :1" :273 141 .672 969,324 197,823 7519M 9m 9.790

B~ . . . . . .. . . (~_) 1 1.660 M13,768 %004,820 1 .3w,863 7.618,060 13,574 $1.522

a (s~ (C roo" 03 655,117 6 ) W7 . .176,732 1 .409.693 4,6112,757 29,588 U,M

Boalo

B-FQM 54829

7. 95'0465 "13333 5,C3 A41 758,003

1 1

4AM 167 479 4 792

:

. . .. . .. . .

. 508 555 "71,30 01,796 M1 :604 635 4252

Haffl"- . ...

. . .

. . ..

. .

. 9,108,138 1 .788 .687 6,904,357 1 .118,004 5.726 .454 484 57'.15 M .!,M~ ~(~)b~) . .. . .. . . .. . .. MA67,702 8,493,122 23,869,D80 2,12D284 21 .532,695 7547 200,454 P.n-,jh Joand)r WB5 192, :W1 .728 208.161 B23 .369 so 10"n

16 :157 296 '52

6

Pr.,id- 82 818 487.119 193,631 1,273,550 714 19,218

M*AU .U ftgi . . .. . . .. . .. . .. . . .. . . .. . . .. . .. . . .. . .. K9791M IAMMI M709471 7A4Bm 4IM5,175 ?V.U2 4nm

Ba_ (?mryw

N~- 6

.&DC). . 27111071 61 :482 ~Q, 465 1.~,840 9.lB8 .422 2M,&M 156, 99

: 75 :~ 1 :40106M 3

.960

659 :28 207 .197 11, 64 .556 610 18.066

PNL&dalpft 14 V4~SN 1,774,5W 12.155: 16 1:7266.867 9.941,901 388,438 98,209

Flit*Knh (1- 0) W~) . .. 0.V4 .276 1,2Q.730 8,511 .396 959,249 7,479 .9Dg 33,131 69.108

R~-l . . .. . .. . . .. . .. . . . 7,626,9W 9231558 5W6,185 1 .172,012 4.515 .581 101,668 Q.923 mk .,O . (D~-)~ . . .. . . . . .. . . 2,217,= 613.3W 4 .554.951 167,495 1,374,WS 2 IZ679

souoisswt "Won . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . . IK1614M 5^700 KTIOISSO CM7.1n 9"13 .310 INA22 MAN

AU. . .

. *

.. . . .. . . . .. . .. (C-*.). . . .. . .. . . .. . .. - 7,314,748 1,009,949 5.725,285 957,521 4.705 .439 3,609 58,736

Birm.g,m. . . . .. . . .. . . .. (Alat-) . .. . . .. . .. . . .. . .. 4,130,524 482,SW Z465.952 686,619 2,741,476 Z614 34,902

.. . .. . . .. . . .. . .. (sOtAhQrd,m) .. . . .. . .. . . . 030.602 3981M 2,5w.693 489,668 2.D42,526 636 27,863

(~hCaroi- Gmnsbm, 422 494 ) 1,936 6 .973 5,932,875 1 .069,619 4.796 .409 387 W~

755~ is 193,531 I .W9,270 435.874 1,056,225 1,016 16 .155

13 a2B 1499045 ID 883 W 3 .37 . 63 7.313,514 95,717 Kau

6:66957OU7 755,715 4:691 :425 XZ 3,657.781 263 45,520

C.~R 70,935,801 1OAsp 787 55,680,212 C"BAN sirAn"? 111, 7 AUA43 cllrj~- , ~ ~ . m ~ .

.. .

.

. 11.300,710 2,153 :7U 8.710.W 1,062,556 7.481,851

89,74

C~ (G. (d) ~) : .

: 080 77,090

2,231,M 12,824,157 1,436,170 11,278 .631 9,714 99,M

D .. . .. . .. . .. . . .. - M.W078 4,712,810 20,815.212 I .W4,842 18,623,902 34,046 162.332

vr.cm..ds 9A20 .127 1,061 .722 B,273.167 UW1016 6.043 .458 7 .99, 53,689

L.IAW11.

. 5271 999

616A80 3.312,156 756.162 2,452 .222 75,732 28,040

P.rK..b.Q . .: 1.. . . .. . . .. :7 183 70 .'6 4 W~

.742 1,5M,W5 327.759 i,im,m 181 13,241

~

R"1_ 72M4 IZIZLDD 57AKM sm.= 46JI41880 YM?" 46&M

.. . 670 56.3W 58a,842 194,N2 3a%U9 3 4 .UB

CN~l . . . .. . .. . . .. . . .. (Sw 20,175 561 5 .150687 21,608,111 2,832.274 18,347,354 2".482 1841mi D.M. .. . . . . .. . . . 4DB1,M9 582 :1 U 3MIM5 1.031,058 2MA42 051 25,904

FaMo O~h . .. . . ..

. 76101 1. 58 "5 6,673:481 222,652 5..5629 10 6,189

mi~ (Wkswmn) 8.777 :2679 582'513 783583 983.6W 738.667 "SM 59,785

0~~ .

:(Ntm~~) . .. . . .. . . .. . .. .

. 2,976DO W1 7 2,471 M 539,415 1 .790 .575 124270 17~542

St L_ :. . . .. .. (M-d) 11'581AW

1 .6m,76 31

948 1,370,414 7,712,877 1613,288 73,369

61, PW 1ID.3W662 .773 5 1 '8524 1:2641279 : 61968 s96 789 .102 2a2,067 BZ=

spd1Qw . .. . .. . . . .. . .. (s. (b) W-)

5.

257'iiO 898,710 ~LMAV 3.026,374 5,195 32,724

8~R*qW 64.94 C144,448 43,419 OXU79 UONM =AU 34kras

Nwqps~

1

2450525"S 111 '786 "MA10 257.843 828 .216 74 8 .978

A.ijn . .. . .. . .. . . .. . . .. (S. (0 W~) 18,176,745 2,962,~ 13.M.049 2.58D.697 11,074,370 "j573 1M303

C= . .. . . . .. . . .. . . (wy-%) UO.595 & .~2 525.556 181,425 342 .911 1 4,216

DO. 11. .743 2,028.931 8,949,911 2,212.01 0,642,192 13,943 si .m

D6,6115 14

1 511,222 5,911 D,B, M .436 M .395 4.999,814 23,019 a5,168

Lift Fb~ . . .. . .. . .. . . .. . . . 2.73D' 262,381 1,677.M 471 .400 1 .186 .959 1 .286 17,349

N- N .

. . .

. . . (~). . I . . .. . .. . . . 5,486,733 R7,406 4,557,053 1,045,002 3,472 .704 1 .712 37,577

Me- Oty .. . . .. . . .. . (0~,-) 5,029,767 W8.943 3,742,11M) a3l,224 2.877 .655 219 33.1381

wl~Nm . . .. . .. . .

. (~) I . . 3.935 .%6 536.923 3.233.258 76%413 2,269 .353 147.540 26,952

W.M_ R.O. ?ZM,173 10,243,350 69,12tM tIA"'m 40,690MI 174,783 4911,663

m~ .,035 737,293 118.234 614,433 4.GM

od~) ..

.

. .. . . .

. 1,312977 im 26 1 .137,424 212 .953 912,377 847 11,246

(M~)

828 :363 662777 7M.078 232,179 487,337 635 5,927

HonOfiAU (H. 1) 1.455,226 199,747 1 .221,24D 239.031 972,212 9,097

P_L.wj;s~~. . :: : (F-"(.) 28.142 .nl 4,438

.815

22.415,410 4-1613,465 17.648,41B as 197.628

. . . .. . . . .. .

. . . . . . .. . .. . .. . . .. . .. 3,261,9112 319.716 2,816.6B6 618,422 2,171,IB7 468 2O.W9

4

R (202%~. .-. '

.8 870 807356 3,8W 784 792.010 3,039.675 2.823 34.276

A73 :U5 176~M 12M:l 26 314M 927,356 2 11'sm

So. (Uim) . .. 1607.724 184,9813 1,386.711 250.468 1 .121 .350 1.801 Lw .C#Y 13 .052

F.. . . . .. . .. . (S. (.) tx~) . .. .. . . . .. . .. 21,415322 2 .8M83. 17,191,014 3 .122.017 13,766,W2 168,"7 1N.5,13

sw* . . .. . .. . .. . . . (W_wq~)- 7,629,350 935.D93 6.366A57 1286,156 5,029 .M 862 49 .846

On. . 0 W-01-0 Op.."- . ~ . . . .. . . ..

. 2J27,901 16CAU 1,?sssm 3U.3411 1.337,452 4.8" 16,047

P_ Rw .. . . .. . . .. . .. . . .. . .. . .. . . . .. . . .. . .. . . .. . .

. 602,166 15,624 ~1 .108 24 .148 411,725 15.237

ot~ . .. . .. . .. . .. . . . .. . .. . .. . . .. . . .. . .. . . .. . . . l..5 .735 I.Am 1275.1ili 344200 925,727 4A11 1510

urdhm

F.d.W

~

. d-sis' . . .. . . .. . .. . . . . .. . . .. . .. . . . .. . .. 193,017 38.73, 198.010 265,381 295 ~7.615

7661. .,778 721,365 7213W

-14 :~ -14,480 -14.W

WMhWd ..M F-M -0~ M&M 228.959 228,958

Ci-M -. ~F- am~ *

oa-A, F~ "t~W . .. . .. . .. . . . .. . .. . . .. . . .. . . 15

PmsW&ft EJ~F" . . .. . .. . . . .. . . .. . .. . . .. . .. . 35,934 35.SU 35,934

ft-d i- Cr~~

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

11

. .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

..

.

. . .. .

.

.

.

.

.

. . . .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

5,443 SM3 5~"3

-66,404 -81 -a i

T~f. Sh- ~ W- A—

Cd1-1 . . .. . .. . . .. . 49,558,113 7.304 .649 39.606.424 7.490 .483 31 .614,420 169,345 332,176

33 432AW 6,049397 25598.952 3 .759,818 21,373 .728 249,660 216,725

51 :800 399 1 1026202 38.977.978 4 .610.090 33,992,OB6 45.W 329 .951

(d) 0=1 2741

1

:821 4:385,632 21 .534,742 2,498,726 ~760,48f 9a,794 176,740 (

.) PWI-Yk-" 24~N8,8)5 3 .015290 20,696.812 2 .1158 .1 17 ~ 11 42 1 .810 421 .569 165 .317

(D T.. . . .. . . . . N.862.488 5.011,334 22,7U.969 4,793,379 17.716,567 58,616 186,397
m

Table I .-Continued

(in thousands of dollars)

dWct. SM. W

COW. W.-Md by Wn*

h~ M pwwdhnb; Wtos ft r

U~ mm- Ww

M.64ft.ft R.O. . --: :: : : :: : :: :

Alb. .. . . .. . .. . : . .i : :

Aug~ (M-)

B_ .

: : :: : :* : ::" : .

(SM (c)

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

H.ftd. . . .. . .. . .. . . .. . . (c N~).

.

)

(S. (~) b~) . .. . . .. . .. .

(~

Ff P~-)

. . .. . . .. . . .. . . (P~

MWAU.ft R.O. . . .. . .. . . .. . .. .

go.. .. . .. . . . & mc.)

P

pm~qh , . .. . . .. . .. .

FWh .

. .. . . . .

(Mrgjm) .. . . .. . .. . .. . . .. .

WWI*V-

. . . . .

. (D.L-.) . . .. . .. . .. . . .. .

S.Lqh" R . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .

Aft . . . . .. . . . .. . .. . .. . . .. .

G-

(S'oUth Cw)

. (N~Crd-)

J.k. . . .. . .. . . .. . .. . . .NW-00)

JmlwrrA% I .. . . .. . .. . . .(Flcd~)

NwhIft - _ .. . . .. . .. . . .(T-) :: : : " * ' :

Q~ A . .. . . .. . .. . . .. . . .. . .. . . .. . .. . .. . ..

culd-1 . . .. . . .. . .. . . .fi~w ((0 ~) . .. . .. . .. . .

c~ (-S (d) Ww)

DMh .. : :: . : : ::a : . . .. . . . .. .

Pwkmbwg

mk~ A

C'~', (Sm (b) b~)

D.~

F~W (WO

M~ 'n)

0~ . (N~ : : ::' :: : : :: :q

St. L." : .. . . .. . .. . . .. . .

. (M-A)) :. . . ..

st Pw . . ... .

Ab~

A~ (Sm (9 ~) .. . .. . .. . . .

C~~ (WyonWg) .. . .

D~

D- . . . .. . . .. .. . . .. .

LM Rk

. . .. . . .. .

~ 011- (WAI-)

olft~

0"

(0~)

I..h. . .. . (K-) .. . .. . . .. . ..

W.W. . si4~ . .. . .. . . .. . . .. . .. . .. . . .. . .. . .. . .. . . ..

(,WW)

m. . .. . .. . : .. . .. . . .. .

M.-V. . . .. . .. . . .. . .. . .

c~ (a)

P.".w . . . .. . .. . . .. . .. . . (0".): :: :

R. . . .. . . .. . .. . . .. . .. . . (N .. ft)' .

so ~ City '

San FarK*= . .. . . .. . .. . . (~ W)

S~ .. . .. . . .. . .. . . .. . . (W~ng-)

orkP~F_ . ."d-01" n .. . . .. . .. . . .. . . . .

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

0~ . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . .. .

F~W . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. .

Ga.~

., WW-WV

0, ~ - FICA ~ I- .. .

T~.~-WG. . .. . .. . . .

wm~ ~ w N~ww ww~. . .. . .

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

P~ El~F.. . . . .. . .. . . .. . .. . .. . .. . . .. .

E~ -C~ I' . .. . . .. . .. . .. . . ..

0~.. .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .

' Exd.

. MM TOM

EMft am (_ d (_ a

~_11' C.1-

25, n. " 12.18

40~m w ")

(9) (9) (10) (11) (12) (13) (14)

WAMW N*ft ~

k-P~

(cw~ D. A..m 0-"

(15) (16) (17)

GDBAV 3.212,731 1&M 1k7QG 82

107~m ,1'n3 1,177 U 3

-

2.

3,31 19 40 1 73

73,791 66.M 800 mi

12AN 304

346

7 1

125,867 317 3D9

123,246 311

3.170 76

84

Olin SKM cm I.M 9

61,339 159.451 z1" 327

218,197 1,036

133'm 943 .1 1

72.613 236 33D

Z869 207

47

64,77i "1 93 2= 63

18,118 53 337 ; 2

1169 32 3 10

- 1 1 6

2~ 4

m

148 . 295

2 82

51= 3.965 25 16

. 64,753 . 125

125'm I'm" BAN 2.604

. 176,166 W7 437

33,723 13,891 206 647

162.2DO 140.103 W2 807

223 ~ , 477 411

615:433 1 :233 1~

6,904 60

6%755 359.959 2,701 2.714

59

39,457 im'074 3DO

19 59

179

4.- 3.024 29 '71

6,5,4 60

- 131

.34~ 1,061 375

3,622 21,126 165 21 0

- 166.292 1146 m

CA30 2BA33 "I 2,M4

- 1,392 130 58

31,250 2,774 1 738

35

120 432

179

77

16.7W 19 .395 652 285

71

4 .953 . w

BU12

9 35

61kin IAM 3,=

60

2,W8 1,766 4 IOD

5 103 a Be

41,W9 127,866 382 9D7

2.095 . 247

I'Sm 22.881 64 20

71

28,12i 354,53~ 1 .379' .5

8.275 &M 26 mi

203AN 1,M

203,6W LOW

5"'176 174~m 19,M.M 6M7jM 3M&034

951API 32.315 IANA17 623,634 411'M

;I7 :12 1,299

203 31 1 k716,1 ~.5'78 3

'245

532

JM' 41 2

3

. 261 2W41D 154 M5 141,278

156

. 959 6,348

IN:SW 15.iil 12,943

78 .038 1 .647 216.587 1".~ 346

7,790 9D 4.499 72 71

IM 476 4.256 "'362 lm'~ 125.493

2M~5X 14 .406 wl'~ 143,6n 123,561

14

31

:1 175 3 wi 28 3m 3,M7

mi 620 , 1:.159 6:070 U

804,?U 17,211 ZMAU 331,912 U4,M7

136,125 3,581 600,418 241,023 223,281

;52 M Z 2 M9.219 a7,N5 219.787

41 :771 5,53798 WW5 188.179 135,030

71 .M 1,422 83.OD6 73.1M

W.475 3 .256 772 .~ 32.611 3.D7'

13.427 1 .Oa2 U,657 m 47

703AS M .IM 2,737ADO 377,M 143,01

75,241 2,611 501,662 mzn 18.5n

55963 1 .771 124178 3,693 3,32~

33:6D4 482

M

:987 770 25

-

. M 1

. -

1,429 9m 98.335 309

26,05 2 .190 24:551 183 WO

376795 10 .120 458,776 137.737 56,.2

59:679 1 '947 160,939 83,516 U,878

04= 22X$ 3XIAn IA39.156 IMW2

iffi'~ 1.925 M7,9n 235,199 M,470

27:11 11,417 914.~ 59,202 M 466

7~ = 2, ", W1.572 370,MS M.91 1

99198 3 6" 382 397 237:483 M :322

45:90D

,

:210 J~ 296:852 629213 61768M

M.068 511 38.W 7,024 6.964

MM 26,129 xFmx$ 754,7" 41"n

12 21

MON 5 ,

1 .112:1

6D7 W 217 1~2._ 10,498

85. 7D5 1. 993 67

.

854 491 1 OD

17

.

B38 386 11, 019 90 77

75,528 ~.SM 334,114 IN15M 7,97

60201 .658 80, 1 9 2'm

13~

111 :419 9 '581 487.=6 9 M.IM 70,289

92,924 3.109 M,525 52,168 25,123

96,~g 1.985 M,246 194,919 167 .700

731 .630 28.1%

16.M3 759 16'am 1,590 1,558 %MIA78 3"AW MS U

212,215 11,M 1 .165,W2 82 ..' MJW

10,56 720 36.709 41 35

M:595 7,W1 514.M 10018 552

63

. ' 2 '1'

251 WO 115,151 179

21,232 1:U4 50:696 "7 78

78,094 734 73 "7 W .871 36,111

74 :1 1, 123 342:170 185 71

74 2DB , , 377 90,142 5 .409 5,203

1,MAU MYN 2,MAM M1,VA N%m

2,669 117 12,088 1 m 45

10 .148 199 IDAW 74 60

20 .895 465 14.146 5,122 4,778

17 .702 1 : 271 9~ 5 266 668 m

366,478 79M 4 .138 256A5 170.966

66252 M7 4674 2U2

63 :912 3, 256

118471

3D:562 30:486 24.730

24,~ 1,082 14,M 73 71

9 7M W MJM 40 19

369 :8w " we 980.529 547,467 384,992

71573 2.972 252,~ 65,407 15,U1

14:iii "2 220.

-

204.042 904.642

1.192 2 214, 241 204,UO 2D4.W

12,811 210 12,328 2 2

~3,7~

1 5

~,321 57,342 48.951 0,573 277

(.) .. . .. . .. . .

(b)

N. Y~

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

P...'~.

M T. .. . . ..

IM.376 15,N7 1 .894,W7 SN,373 655.%7 69'm

403487 7592 ~.373 463 M7 3B2 314,198 39,457

543:204 23 :70D .229:315 304 :330 137 .095 123,246

M,723 15,422 1 .242.302 294,401 225,937 33,723

213:11 1 :1 1 :0111'j.4 27 71 :186 M21 6

397810 267 680: ,. 367 M,314 31,25D

02.400 1,761 1 .862

272.367 1,446 927

12,640 . 1,209

190,056 1,073 1,064

206,256 1,179 771 9

2,M4 1 1,170

Table 1 .-Continued

(in thousands of dollars)

w "i

(S. W

. . .. . . .. . .. . ~r"Drd. . . .. . . .. . . (c:;.,bw

P~

(s.w b.~_

. . . .. .: (~ -

prcW~

"=

N .. . . . .. . .. .

pl'"dwai. . .. . ..

P,tlw,,, . . .. . .. . . .. . .. .

Rl~ . . .. . .. . . .. . .. .

AIL. .. . .. . .. . . .. . . .. . .

j~ft.

c'

cl~

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

LOUww %

Pa~~

Mkh" P..DW

A= C

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

SmngWd .. . .. . . .. . . . (S~ (b) N~~) : :: : : :: :

Mm=

N_ o~. . . .. . .. . . .. . .

o~~crty

='img6 : . : J

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

Ancrorao (jj~

. .. .. . . .. . .. . . . .. V.). . . .. . . .

Lp. Ar*M . .. . .. . . .. . .. . .

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

P-ORop"A. .. . . .. . . ..

Lqwk&u~

c~ N.,y

=Fj

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

. . . .

T~W am. ~ ~_ W_

(a) C~f~ . .

(b) I. . .. . .. .

(c) ~ Y~

(d)

w

(1)

wb~ --dw*

"-w

AWW tnm-o~nupd

57

19"n MW 1UAW

34AB 3.1m MA N

155 155 40 25

2729 2 25 21 .661

2 :416 467 10,609

2. 16 83

'517 18,517 125,957

66 6~

1

10,681 29

46

10.493 188 0,

387

2 m 21.

2

5.989

?AN 4.0W 4,N6 4 .033 IMIDO

12 13698

aS4 58.~

s`111 9:, 1 .618 6.

Is 27,917

410i

w 9S3 3317M

I'm 2n

lu '4 9

29

482 08. 37

5 020

2,448

1

Z3D2 147

a, 82

847

LSO 44M

. I - 1 8, 638

&36 WS SM 5,

An "W4

1

: 1'3D5 :~112

3461 Z 220

1

786 675 62663

54 02,147 :

400

YAM ON %82; 329.1 is'

I

5 .W~ 2Mi 2,797 U4

23 m 287

4905 1.1 9 118.1 7

1 .25~ 2.70133

2"

473 786 MAN

1 11 27

235 26,801

Z704 .217

M2;

1 257 MMI 11,515 1,54; 2 46,1412

7

35~ 352

9

2 2 1

6,062

7 2.479 3,588

6 6

24! 215 3

129082 1

686 23

.943 127,140

9

8 7

135,149

S.

31,768

2 , 060

1 W2

. w

ft.t47

T. D-.ft. Oc-'PdW"

M )

tc=

104,365

-,97 2

18

"875

, 13

11 6

I" m I

es

1 1

253

79. 462

874

2.326

5'5022

21

33392

49.052

UMS 1A6?A3?

10,68;

125.884

9.332

.854

69

14

Z065

400

246

63

3~

56

1,310

374

3

240

2

4 074

1

1,485

264

8 .~

4,422 130.728 :13*216 1

ZM 2,798 27.0

493 21.275 35.581

1

:305 756

06466

54; 2 '62,0550 . 8

W7

245.977

. O w

167.m

11,787

66.

52.235 M

9, 709

27. w

22"?0

33'agi

76.788

18,551

I V*4M 57,173

9,176

61 85

10

:1520

12.318

232

177 .97~

Z6a2

93,

26.655

27.200

28.

0.646

104,265

114,94 9

1'.2

i

i

ImAnas

457

S2 :315

. 365

48,8U

U"318

40

21

A1

731

29

54

2

T25

24

75

687,

8' ~

51555

9 M 27.277

.332 :205"Em

14 MUS

' 61W

.319 '48:910

37

"041

278 141
ja . ~g ~.2 9 ;1~

SEm~ Wim

u VA

~Y ;P .m

MPA

tams

I . . . . _ g . vin.m . Vi R .M; 9 1- _ . m

AA . . . . . . . R . Ug .-_ . JL. i, . Z; ~ 2

. . M . A

-a I

J

3 ir

9 i

: 813

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

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

AIR a i gig

Mir

&

-

; .TQn-

-Hu

a -, '. - Ann Ha

wg~~w~;

? M. MOE M-g M~-.A

t

m 4HM M

E 81 ZIA .

MUM MH402 U N- WVR RRI M

;6 :A

g f
I

W.0

T -9~i

Mg,sig

i.-s~a s

-8-

-

p ~~'Np~p ~- p

. . . .

~~ :'Tnmuguu

fljn~

-

:ASW

i~"Mn-M

. 83

-4~'T~p at

-A.9 .026;: . ~!.1 ~ 6'8-1-28 ~Sulff-t-an -Mgfl .

i

tv tu

;§ z

.Ehma- =1 ~g . 6 ~i 1 ~22 t .2 ~9 g 4.49 g 1 A t-2 9 1 §- v -2-g e;9 ~ t~ I & c-; ~ I "~ '6 1 .-g fR E -~ gA

FIFN

f

i if

t A

IN

Z;

a- 1111,
PN

Table 2.-Intemal revenue collections by source

(in thousands of dollars)

Im I

m

G-MUK01.. . . .. . .. . . . .. .. . . .. . . . . .. . .. 3ml7yalm AWAIZIIW .. .. . .. . . .. . .. . .. . .. . .. . . .. . . . .. . . . . .. . .. . . . . .. . . . .. . .. . . .. 65,N10,45 7IA471M .. . .. . . . . .. .. . . .. . . .. . . .. . .. . . . 65,~:'50 71,408,891 4 .

. 38.985 .. . . . . .. . . .. . . .. . .. . . 31GJ49'.ij7 384MS,731 .. . .. . . .. . .. .. . . .. . .. . .. . . . .

. 1:171 61 248 .359 . .. . .. . .. . . .. . .. . . .. . . . . . .

. 25'3:.'1' 181

I-.MhhW-F1CA"- . .. . .. . .. .. . .. .

. 7 297,823,479

t"I'd

................................ 21111,11 1,3,5 .893

... 2,fi,12M4 2,958 .000

11'111~0`0` SAKI

"

QMW . . .. . .. . .. . .. . . .. . .. . .. . .. . .. . .. . . .. . .. . . . . . . . . .. . .. . .. . .. . . .. . . .. . . . . .. . .. . . ISOA19 174A=

gitol"It-twit . .. . .. . . .. I . .. . .. . .. . . .. . .. . .. . . .. . . .. . .. . . 1814111114,949 1111049,504

AIC" tioo~ . . . .. . . . .. . .. . .. . . . . . . . .. . . .. .. . . .. . .. . . .. . . .. . .. . .. .

SM2,715 5,U7XM

" m-%6 3'"5.o&t

DiOW 0 -. iood

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

.... . 702'm M.667 Onponio (Ww~ ty C-, . . . . .. . .. . .. . . .. .

. 3,259,100 3,212,nl

MgWw bl- ~W 11

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

FtIoObcaoon, 30 o,- W pnool ga on .. . .. . .. . . .. I-, .. . .. . . .. . .. . .. . .. . .. . . .. . . .. . .. . .. . . .. . .. . . .. . . .. . .. . . .. 21 .467 18,860

Ow..Wel -

Nont.-G.-WO- ol Oft $25. $50 . $100

.WY....................

. 106 141

fwcstituig~ I

~#tin20DDOProofgidJ"11S1IDW1`Itn'

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

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

20 .000 PW'90- 2

1

FWW deN. (disNedl 15.355 15, 44

Whololi),,P., . . .. . .. . . .. . . . 1 '071 1,224 . . .. . .. . .. . . .. . .. . .. . . .. .i . .. . .. . -~~ . . .. . .. . . M =-~ , " , 11 1 . 3

aftw oonoImm mwndonnd $22 Wh ......................

.....

09 m

3 676 m,333 .. . . . . . . . . . . 3'

oonww

7 cenm 67 cents, S225 W nni gftl~; zPWk1WQ Wln~ $3 40; tottlCtIft 155,818 162 .955

.1b1W-S2A0;OQ~o0nJNMi,$192)"- -

...

....

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

. in - iinci t*IIr. $54 - -...................

Q

VWOO~ oioIjInt in~ In nnes aW t-r, $225 Wr Y---

111-iti-itoII - 6'~~ . . . . .. . .. . . . . .. . .. .. . .. . .

lrnpWw

- by

1 M.G(K) 34.3D5

btoni,

............................ . 1,MI .137 1,467,637

5DD St 117 n

rim. inotitmw 0,6, 2,21337 1,90

V.2D .W . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. ..In . . . - I . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . ~62 mi

Tob~ I-Solbil .. . . . . . . . .. . .. . .

. 9132.491,517

IARAM uxm

.................2.400,4 2A54 0

~5 '8;7

38AN "I'm

..........

..

...........

.

... 35,11114 35'm

33676 31,6D9

....

..

........

. 3:118 3,480 $235.294 W ib-n3. $20 W ftui,,nd . .. . . . . . . . . . . . ..

Wh.""'o' pr= 1,225 1,112 S,nIs C.P.. 75 P:'=. - .. . .. . . .. . .. . . .. . . .. . . . . . . . .

a ptims zintj Ctandle t~(CODWW by C~ . ~ i- a oo~) .

. 233.14! 3,ODt

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

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

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

vsniim, P-p- Ind toti, 12DI 1,457

V91

Table 2 .-Continued

(In thousands of dollars

)

S-0- Im I

m

9-W.b..C.*.-d

KmLdmcwws ~ ft~.......................................................................

......

.

.... . Ammmi 7'W'612

=z"'W"tt= ~~ - ~ 11 ~ ~ 1 ~ ~ ~ 1 ~ ~: : ~

........ - -....................4.~.~ 4,525,065

Ti- (whony or in

W0 ~r), inw ii~ tno intto rubow: .

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

.....

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

.............. 105,227 105,6.7

To., Ngh..y ". 10 .- , po,,no . -. 5 - W - -W irj-W I_ (,,,-

IW type -io on nighway v*hidtip), I cion per wl~.......

............................ . 7118,707 820 522 1 wbi`III 10 M, po~w

T'W~. 5 pouni

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

.

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

. 25 W,720

Motor YWholm. Chm;IL bodlsI . pooig

. ano acce-im: .

.............. 24.354 22~041

@WmmbHIn,, chaoIIoI, boom . M .,7 -oinq 77 -31

1 T-M, ~W It-, too~ W, 10 p~o, . . . .. . . . .. . . .. . .. . . .. . .. . . . . . . . . .. . .. . . .. ..

P" - 1 . . 817 2211 90 4W

. = - 1-1 8 pinoint .. . .. . .. . . .. . . .. . .. . . .. . I . . . .. . . .. . . .. .. .

101:474 223.721 plinoO. - nt-n,' 10 o-nt .. . . .. . . .. . .. . .. . . . .. . .. . . .. . .. . . . 1 11 . . . .. . .. . . .. . . . .. . . .. . .. . .. . 1 15223 17W7

ooi. C~' Im .. 10 pInoio : . .. . .. . : . .. . I . .. . . .. . .. . . .. : .: . . .. W., . .. . I .. . . .. . .. . . .. . . .. . .. . . 28~351 30.416

no 1-. 1 ~. .. . .. . .. . .. . .. . .. . . . . .. . .. . .. . . .. . .. . . .. .. . . . .. . . . .. . . . .. . . .. . . .. . .. . .. . . .. . . .. . . 0,794 5,039 fir. (olhtt, th.,i poii. .. I I -oInt . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . . .. . .. . .. . .. . . . U.499 Q,164

&"h Into ~~' I I I-n, .. . . .. . .. . 11 . . .. . .. . .. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . . .. . Z3.U3 28,214

BLmk Lung . . . .. . .. . . .. . .. . . .. . .. . . .. . . I p . .. . .. . .. . . . .. I

w : .. . .. . . . .. . .. . . . .. . .. . .i . .. i . 52,484 232ZO Othe, . . . .. . .. . . .. . . .. . .. . . .. . .. . .. . . .. . .. . . .. . . . .. . .. . .. . . . .. .. . . . . .. . . .. . . .. . .. . . .. . .. . . . . .. . . . .. . .. .. . . .. . .. . 4 1 R.&INIes .. 1 . ww tott . . .. . .. . . .. . .. . . .. . .. . .. . .. L .. . . .. . . ..

Noncca-,oIII .,ifton g-. 3 - W gIfi on . .. . .. . . .. . . .. .. .. . . I I . .. . . .. . . .. . I .. . .. . .. . . .. . . .. . .. . . .. . . .. . . .. . . PUT? U3.M .. . .. . .. . . . .. . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .

N- 10,9514 10.720 .IOW Mt . tW oir;~ "n qIIotZn7 - W gton . . .. . . .. . .. . . . . . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . . 31 .289 35.920

D~ . WIooti - fiIiI. 4 -m - 9 tn- inioon,,~ 2 cenot W gison) . .. . . . .. . . .. . .. . . .. . .. . . .. . . . 481,427 SM.651

mWeen- ~

ot.. . . . . .. . . .. . ..

t~. . .. . .. . . .. . ... .. .. .... .. .... .. ...... .. .... .. .... .. .... .. .... ..

. a . .. . .. . .. . .. . . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . T.V- .. tiWqyp-t . -n . . Lmrw 433 ~1 3 P-' . 'L .. . .. . . .. . .. . . .. . . .. . . .. . .. . . .. . . 1-1 . . .. . . .. . .. . . .. . . . 1 .6%736 1 .36ZIS3 T-W-ton o, - by .. a ... . .. . .. . .. . . . . .. . . .. . . .. . .. . .. . .. . . . .. . . .. . .. . .. . . . .. . . .. . .. . . .. . .. . . .. . . . 1 .110.613 1,272,003 TL;."',~rty b, In . 6 I-ro .. . . .. . . . .. . . . . . . .. . .. . . .. . .. U.01 1 79 OD9

wr.," tft.. $3 - .. . .. . . .. . . . . . .. . . .. . . .. . .... . . .. . ~11 . . . .. . .. . . .. . .. . . .. . . . M.488 74,64

1

W~W 9-ng oirncas, $250

- ck,,ce W yr. . .. . .. . .. . . .. . .. . . .. . . . . .. . .. . .. . . . .. . . .. . .. . . .. . .. . . .. . .. 7.3DO 4,867 tiones:

= '

. ,

Yi. . . . .. . .: . . .. . .. . .. . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . .. . . .. . .. I'We 9w Wit, 2 -. V -.1 wMW . .. . .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . . . .. . .. . .. . . .. . . . .. . .. . .. . . .. . . .. . .. 24

oo~ on hVnnty ~idm mgrwV - M,000 po~ $3W

1 .000 po,,nott W ym (ininstwt

&="'d) I -

D ' .. . .. . .. . .. . . I . .. .~ .. . . .. . .. . I . . . . .. . . . . .. . .. . .. . . .. . . . .. . .. . . .. . .. . . .. . .. 237,603 251 .m

CIAI U5 - i- - ton IddNamal2 Pound on ~. ng2.500 P0- . 3 1/2 - - p- - ~ o-IJ . . .. . .. . . .. . . . .. . . .. . .. . .. . . .. . . .. 22.W9 27.741 F, inarist. ano -p~j omw. .. .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . . . .. . .. . . .. . .. . . .. . . .. F= W toot, In pnnnt,,, . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . 5,704 09.7211 . . .. . . .. . .. . .909 261

"Woo"'oni .n"'

::: U419 sB,w7

i-, 2................

.......... I.......... 83:950 65,217

SW d-iting. 5 M-t- .1~. 1-1 0 1110 .0,N) ct 2 1/2 I-oenl on ta,tnolnlon -naaw.............

.

...

. . 6,11? 23.

E- ~- hcOng,' 5 i-n- on Jodd on..............

.........

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

............. 24 T~ OV*ndlWM. 10 Wcent m ~ncatc,n, it- d S5 .ODD m 2 1/2 oinnoint m n-&Ition

F=t~~ w-a*

.

...

.

.. . *

.,'* 79 130

,FWI w dt~

....................1 .014 16M . o-no. 15 -. 0 tndi`nnb-d w... . . .. I .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . . .. . .. . . .. . . .. . 1,265 1:"

I - In WIdIM- I-n 0 11 .ODD1

5 ;-oIntI .. . .. . . .. . .. . . . .. . . .. . .. . . 11 1 . . .. . . .. . .. . . .. . . .. . . 2

3

EnOoy- pl-, toom .. . . .. . .. . .

E- .. . .. . . .. . . .. . . .. . .. I I . . .. . . .. . .. . . .. . . .. . .. . . . I I I Z990 Z050 .Wb.0- w e,n IRA, 6 -W .. . . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . Z409 990 Tm m undendmtrb~ non, w IRA, 5D piInotni ot untniogittnIon . . . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . .. . . .. . . .. . . 40 116

P=~ P=w "bV.1-1Wn .. . . . .. . .. . . .. .. . . . .. . . .. I .. T on= HF~10 . .. . . .. . . .. . . 296 279

P-. 6 P~ ol --. .. . .. . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . . is 18

Fd- 1~2 "'dinis 5 wc,,ni 0 ft. .kn2 w-.y . . .. . .. . . . .. . . I . . .. . .. . . .. . .. . . . 157 201 T

Fdh- to . on, oo~ 10 ~ `-n'It. VW- St P., otry . to SS

. 6 W.m 61 51

.DOO . . ..

Fdwe W OW noUtoIoo,, of chmp, $1 .00D W oIy W w 55 ODD . .. . .. . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . .. . . . 25

FWFaIttre to. fiW --

onAde M repogs . -dnid by - 6(N17 . 6M It 3 I OWooyup .S5.0CI0 . .. . .. . . .. . . .. . . .. . .. . . .. . .. . . . I 3D!

' $10 ~ WI- . . . . .. . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. . . .. . .. . . .. . .. . . .=L~abin,,14 tn~ ' '

: : , ": : * : " :' :' * *

:: :, : , , *

io

6~. 5 ~i oi::'

T- tobbimng Vondowtm, 25 pe- of .. . . .. . . . . . .. . * . .. . .. . . .. . .

. isI

otw .r . . .. . .. . .. . .. . . I .. . .. . . .. . .. . .. . . .. . . . .. . .. . .. . . .. I . . .. . . . . .. . .. . . .. . . . 713 12

5

umd.m~ . . .. .. . . .. . .. . .. . .. . .. . .. . . .. . .. . . .. . . .. . .. . .. . .. . . . .. . . .. . .. . .. . . .. . . . .. . . . . .. . -1 .1 . . . . IKI82 Mize I
M

Table 3 .-Intarnal revenue collections by principal sources, 1941 thrbugh 1979

(in thousands oll dollars)

Faces yes,

TOW

~.wpmft~

Ined- and kmNvkkW "'I shadeas EmI Eabills, wal AkOW TbMace kashe

" Mose., MOO.. ades. estate ,seas . . .. .

. asse

An

sa w

(1) (2) (3) (4) (S) (6) V) (a) (0) (10)

;941 . .. . .. . .. . .. . . . 7.370,108 3.471.124 2,053,469 1 .417,656 925,84% 407.0liS swotia 698,077 617,373 Zxi~p_

1142 13.047 .869 S'WII'lltis 4.7".M3

3

2VAOO 1 .185362 432,540 1 .0'"17 780.962 771,902 81

22 162WM 96aa .:31~ .M 111511 6. 932 1.4913.705 .7.496 1,423 .546 201,1157 IiO4,7~ 1,274,M

12 .760 X :027 :802 4,766:71)(1 8.261,ODS 1 .738.372 511 .210 1,618'rT5 988.453 503 462 1,733,&95

'9.5 .. . .. . .. . . . Q.80c.380 M.061,526 16.027,213 1911 1.779,777 1 2.309,81116 902.145 M:511 Z292,10

~946 . .. . .. . . .. . .. . . 40672,097 31,258,128 IZ553.602 18.704,536 1 .700,828 676,8M 2.521 1.165.519 922,671 2,421 .9"

947 . .. . .. . . .. . 39~10&388 29,019756 9676459 JO.W.297 2 43B5 779291 2 .474,762 1,237,768 1~425260 2,147,184

'm, :. : .. . .. . .. . . .. . 41 864,542 31,172 :191 ID:174 :410 20.097,761 2'OW21,U2 Ill 2,M,327 1,30D.28D 1 .649234 2, .823

'949 . ~ . .. . .. . .. . . 40:453.125 29,605 .491 1 1,!W1,6119 ~8. O'I,= 2,476,113 796,538 2,21QS07 1 .321 .875 .771 := Z2110,969

960 . . .. . .. . .. . .. . . W,957,132 28,007 .6Mi 'O'll 7,153,308 2.6",575 706.227 Z219 .202 1 .328,464 1 .13M.053 2,214,951

~911 SO:"5 W 37.W .879 14307.569 M9l 3.U7.479 729,7M 2.546 .8M 1,351 2,%3,677 2.392 .71 9

952 65 009 N 50,741,017 'i- '~74 21,46111,910 29 .107 8M,147 2-149,IM 4,~.264 1,565162 Z348 D43 2 =

.507 '953 ,. . .. . .. . .. . . .. 69656635 54 13D,732 21,!5g,1 .515 M,IK16.217 4.718.403 1 2 .790,925 1,654:911 Z862:7811 2,647 .492

Z . . .. . .. . .. . . .. : 69:919:991 54 :3110,014 21 .MO .322 32.813.01 5,107,623 935,121 2 .783,012 1,580,229 21689133 2 .464,1159

. . .. . .. . .. . .. . . 66.288,692 49,914,826 18,2U .720 31 .661),106 6,219,665 936,267 2 .74ZS40 1,571 .213 ZW5:016 ZO18'wB

~1 75112,649 MAXIM 21 .296,522 M.337.U2 7,2D5,784 1,171,237 2 .920,574 1,613,497 3,456,013 2 .019,390

957 80~171,971 60 .660 .425 21 -W .663 39,029 .772 7:580522 1 A77 .99i 2.973,195 11A742iD V61WS 2.2KIA%

'911 79 71 59101,874 20.W3 .316 w'w5% . w 386 410 925 2W 1 7U,02I 3.974,135 2

19 .:178:1

'66.~

' :166 675

59 797 1'3 5& 18,09I.W9 Q.734:7U ~ 8, WI:7. 352982 3 : : :0022M 1 .006.816 3.958,789 gi 1

960 .

. . .. .. . . .. . .. . 91,774.500 67,125,126 U.179,414 44.R5.711 11 .158.589 1,626,348 3,183,714 1 .931 .504 4,735,129 2 .OD4,394

~161 D4,11,0116 67,917 .9ill 21 .761,940 "jw'ODI W2.451 1,916,322 3 .21ZS01 1,991 117 4,896,802 1 .963,5112 ; 2

21 .295.711 50.1149 .594 2 2.=,187 3 .341282 2.025:736

1962 . . . ..

.0

. "', " :"' lj~

.708171 2 5.120340 22"Al 7

963 '05'.' 3

34

U.9137 .01 187457 3"1 656 2, .237 6.610,3D9 2,278.5M

3' 4 22 :30306:;W U.M .~ 17,002,504 16 :303 3:577 499 Z007592.545 6.020,543

I

. .. . . .. . .. . lQ. .2 719 .8'91 :724 24 `N:486 2:4 Z2991645

190'5 : : :: . .. . . .. . .. . 114,4~1,65317 Z 792.016 26,131,X14 53,66D .M 17,1041.206 2,745 .&M 3,772,634 2,1",5" 6,418,145 2,453,1106

11 ;2a.879,961 92,131,1"Eut 30'83~12Q G1,297,fW 20.256133 a.093 .9n 3,814,378 2,073.956 5.613.869 1,895.909

957 48,374,815 104 .2118,420 U,ll 69, MIMI 26.9M,241 3,014.405 4,075.723 2.079.669 5,478.N7 - 2,4NAN

Z ~53 383 SW ~Ofl 148:565 29 ON 520 78252045 28 085 ON 1 979 4287,237 2.122277 V13.973 2.196.909

38 :337 :646 15MMS M

.

909 87:919 :56D 35:778 ~ 97:W :406 M:068 :657 3 1 560 Z137,WS 501,146 2,348,495

1 970 . . .. . .. . .. . 195,722,096 138 .658,565 35 .036.9113 103,651 .585 37,.9 .188 3,6110.076 4.746,382 Z094,212 :663,061 Z380.609

1971 .. . .. . ..

. . .. . .. 191 .647,198 131 P72,374 30~319.953 100.752,4'1 39,918,600 3,7114,283 4 .8004132 2206,585 6,W

. M

3, 791

972 .. . .. . .. . . .. . .

. 209,855,737 43.8D4,732 N,925,W 106,1179,1811 43.714,001 5,489,91111 5.11QOD1 2.207.273 5.728.657 3,1901 .104

7. 42~1 :;Ll :.1 1MI 1. 41975 . 5.14%513 2,276.951 5.395750 3.75D 2104 ;.171 .1717 '204 ~ 64 157 211 1,11:M

74 268:952 : M 84 :l 41, 2.093 :632 5 :100:675 5,358,477 2,~TDD5 5,742:IM 3 572: 17

1975 .. . .. . .. . . .. . .. 293.822,726 202,146.097 45,746,660 156,399,437 70,140ADD 4.688,079 5,350,BW 2315.D90 "16.011 3.665,182

1511 .792 205.711 .1. 111,11124"It 158,958 .797 74 .202 .853 5,307 .465 6,427,722 2.Q7AW 5,486106 3M.996

TO 1 39

.750

19892041 1,465,247 1 '

.305,841 M'821 1,643:339 N6,007 :462 780 49507484 91

7 IM:417 246:M:0157 W,Ng 263 88 :076516 7 .425,325 SAM633 2.M .Ml 6.0681,51112 893

49%

:g" 1136,755:12

M Tfl 381 278 IM 2119 0 M,1 45 213~()58.1" 97291653 381,499 5,612.715 2,450,913

"'M 681

4:'

1979 160 :412 :185 322:111 71 .';A7.676 251 .1545.857 112 :849:874 IN,%074 5.647,924 2,495,517 7.057:612 3.0844aN

Footnotes for Tables 1-3 Leas 1- $600 .

-Flauseed.

1 . The mcanct. I. the . Swiss do -1 IN-the led"

W burden, ol each since . in hann,,sena-se, utues am Collected! in

ON Sure front hatedems, 0 andens, Sets . For -ff%M, sIdnedd.

cludis inib -. _reported or anoyam coined - Sure, shers ma, I

.- _wd I- sameri. . _PC'_

-in neighbohng States.

2. hNafte - on rueleled buseness 1- 0 -0 ,ganotersons .

3 . C.OccOlons ot Indrindua, IhOCre - - artimnew

I We sunnuc,rs. diCablity, and hOWiW mannance uums "n- :..'

poyment income, (SECA). singlarty, the do,jimbothe of indhiridual In.

dishe bui arthhOld am raccomed in Combined arnoures afth old~g%

SuIntroull . theabill and hositiltall insurarice - ' )-sateres

arid Wages E111= saderate nationalmat

.:(

.

FICA

- aN ~ oto-" ., .-, dislabloy, . .hoapitW insurshicis I Itainall am Moii,n in the fied We On (Gross, Internal Rausna., Coltaccons) page 5 - am usson, olitaining nalic-1 11. Indift

MIMI Is- taun. and -VkW-nl -as ' Taba, 3.

4. Sall-employment W and bums invossiol by Me Facami Intent.

ance Contributions AM am applicable inth headect W Guarn ON

Areencan Serace Ar-tent, ol such - collected In Guasn and

Amer- S- am combeed Oirch annIbe buse mconedi 01 .

fice of Intermard" Opeabord--ahm .

5. lhosudial Fkkld.YI-- collections or i Watch ,

6. Beginning with fiscal year 1957, " Unifted Stable tooll is adjusted to -I- iitritheld Indiruclual - -es inaracharmot .

she ot C-n Woormance Wth the prmislons d

Public Lan, 00. addrouscl Aug. 1 . 1950 (64 Stal. 392) . This

justhnern ishournsed to 51 4 .5 inallon, nor 1979 .

7. useudess NO adjusiment of -Si million news, by the Del

- 0the T-ry.

S. This calaft is designated W radiant all renshus Collections w

denied thorn -payins heading Outside N the area sarrioad by ft

Internal R-- S.M. Center ,

9. Tax Payments mace to dano, under the Federal ia~ deddsh

stheam, am Included in ene internal nw,urue odeacticins for IN -

W in i,mch the Federed Tax Deposit is Purchased . H-. such

Palms

am NO

.1a.Mied Y .M .

.- '__ ds- - by

. .

.h ..I.w carnthernal raw.) until the

Tax DWMA PeYment is applied 10 the MVRW'l lisbal, Imm w "'I's"

hatinins red .

10. Release a credits aDowabse on, exciew w returns for Certain

Mail and lubricating Oil W MrotinC, and for, ~ cahnamw

under % Federal Insurance, Cohlribuilon Act (FICA).

'I

. Designabome by laudations 0 . Porticon ot their venes to M

adential Elect- Clengsaign Fund! .. .1 CM-, as such,

becanue, they do hot affect -Whatalty . Transitions or announes

w a fund are made on, I national basis ont, am. therefore. retire

-allect on chishicl a . reganall -lactics, Is

12. Represents arro,eas Chile against cuaramil, ; w labilities

Other than we thiches, to, Forms 1 NO ON 1040A or, irhich the cracks

owerraid.

13, includes amounts hanStairred to SPIC41 80cossia for Puerto

Rod, Mign istande 8M the Nomnsh, ularters, Isleards. Also ~

ClUde, W cl and Wbacco W annoulds cit-died "late to be

reported by diatirlict.

14 . And, Me Of anannal ishanue tatuts CoNaWad! an Puerto Rican

Products beheconed to the UralW1 Saides o, consumed on he

al (less refunds, drawbac .", ON se,ames) she conered, tho

the Tm-ffY W Puerto Rico unce, Provisions 0 wees. 7652( .X3)

arid 5314(aX4) shromme M ~of the Internal R-- Code C, I VA . The grin d-hall codection, hasubs (rabies I through

3).

15. Plider w Table 2 lor comconente .

16 . Corporation Iniccins, ~ raise Ell— January 1, 1965, fird

$25.ODO 0 - in-normas! W of 22 daroant, nate,come in

=of S2 .000 combinsol nomala and sunax of M xhoars .

W aW aurta,, it= apply W net Indoors, deread by carban

mempa organdations I hreaaedl trade or buorneca. Effecora

January 1 . 196B. a 10 wcam Para-uacAuegs, ,me addWI to

am W (Public L- 90-364). The 1 0 Parcem Par annum suncrarge

Ors, extandad to Decamose 31 . 1 969, by Public La, 91 -63. a,-

Oluded to Juns 30. 1970 . by Pubfic Le, 91 -172 .. 5 diecent -

nual mto, aW then discorntinuil Under 1.Tax Reduction Ad .1

'975 (P .L . W- 2), aff- for 1975 mt.-

- toS=0. . normal W reduced W 20 .- ""n"" In- M-on firs,

55

S25,000 of landloas Income, These Changes Ones e-Md by The

Raherna,, Achishard Act of 1975 P .L. W-1 ") w Jute,, 30, 1976,

for 1976 returns, at raise designed W the W train ason, The dnu - W highs, .-.-Vion -

thimugh 1977 y the T. Rawfohn Ad ol 1976 (P.L. N-4M) a-1

through 1978 by the Tat, Recluction arid! SWNIffloation A0 ol 1977

(P .L. V-410) . Effai.6" fl~ - yeiOrs beginning J-u., 1 . , On .

the Rinanuis Act of 1978 (P.L . V-600) Iffoosect , nee, NO, athuc.

on- graduated fron't 17 Percent . 46 Percam 0 weak, income.

17. IndhAdual income W hates, Efiecthe Januar, 1, 1965. gniscu.

Medial fichilildencerstOMPamentollaniable,-A10

dencem;r annum surcharge addlecl try Public - 9"", eftcUrra A.N 1 . 1968. for Indnid-1.--torided 1. December 31 .

1969, '1 " sama wanal we (Public "' 91-63) . ~ w

June W. 1970 (Public 1- 91-171) at a 5 dencent annual rate,

and train clusconfinued .

Includes SECA taues Of 8 .1 Percent on W

asurangs .U, $17 .700 nor 1978 W S22,90]l W 1979,

18. ft. of -..as folic- -T. graduated Odmickan,

on wages in O,citse of ww"Wro : Public "w 8S_W8. easo,,,a

JLdY 1 ' 1967 ' 14 w 33 Camara ; Pubac I-aw 91-172, OffecOhn, january 1 . 1970. 14 W 25 Percent: 11 . 36 parcens effecthm Anuwy

16 1972 under Public Law 9~1 78 : 16 to 36 derhown. enectris

A~~l 30 .'l 975, under Puba. "On, 12aw Ill 64; 15 1 . 36

Wmand. atectiIsI June 1 . 1977 . under Public ~ 95-W; 15 W 39

Percent affecthe January 1, 1979, under Pubwo -95-M, A

combi FICA W hate of 12.1 Micare iva In offect on samoss

and wages w M SI 7 . 700 for caleraid, ~ 1978 ano 12.26 ps .

cent on wages W to 922,900 11979 ,

19. Consists, 0 regular milmad mainumerh contained w we w

21 .6 Percent 1W Washicar mar 1978 and 21 .76 Cement Im 1979.

Tu applies m empoyem (IS .M% W 1978 arid! 15 .63 demerit W

1979) aN arnVoyeas (5 .05% for 1078 and 6,13% to, 1979) and to

UrPosed on talbe Poffion 0 wages (IWNtW to finsl $1 .475 of

monthr, tauble cOnVerstation, for 1978 and $1 .908.33 w 1979).

Further incluft, de hasmad amid" mormsemberes - of 21 .6 Par-

. for casinclar year 1978 a. 21 .76 dencirrn lor 1979 on teumbi

.

Portion W OWMnwUm reconnect in addition, a supplimerma w

knied quenarty by the Rearded 4alremand Board is shposed ch

employs. and! nnptme Wrisawase- oused - mest,houns

scrued.

20 . Enationners 0 one c, morm POnscrins in each 0 20 calendar

,iieeOz Or arho Mid empes of 51,501) m mom In any cathandsur qhe tavact 3 .4 p- On tatable Portion W Q.up .$4,200 for

Calendar mar 1978 and to $6,000 ~ 1979 . This -is neducatt by

Credits for un-00yinerm Paid to States uP M 2 .7

deres. of FUTA W .

21, Prior to Janua, 1 . 1977, .1. - gmidaded com

3 Mindant On the first WOOD d his astaft in a- 0 . $60,000

fternision m 77 Fament on dichilon innal SIO,OOD .DOO: 9M Cuma

Mrs thme-fouhim, of the asnate W schisidde to, conespowing

Wases Oifth - SW,OOD -moson subject! . e S3,000 -- a..

cluslon, mir each cones . Beginning Januar, 1, 1977. the sidaus

rates, Us astates, and gifts e,era repectiect by unlaaj new w W

graduated from 18 Parcem to 70 cancient. The sapards ua~

arrourn' asm relimcad by a untfied crecill of $47.500 Id M

Phased! In ouer a 5 year carod, (SN.ODO Wd lo, 1978 hc

$MOOD for 1979).

22, Taues on Passenger w-Miles &W eight

December

1'

. 1971, by the R- Act of 1971 .

23 . Includes 50V am 2% Par ton, bunis on, undargmunc, mined,

Coal and 250 ON 2% sums cri Ounsce, minsid coss .

24 . Includes derricuant Was on Nana repasiaoi by Pubso i_aes

87-s56. 68-M. strict 89~ . A.inctudew, sugar and in.-

equallotilion -.1hich W .

25 . ft. - reduced! from 6 N- to 5 M-nt on January 1,

~977. to a garden - Januart, 1 . 1978 .. to 3 Mroare January

. 1979 (Public Lh, 91-614).

26 . Beginning July 2,1972, suctect W credit up to 80 Mmant to,

Slate Was innoossal Ch such dances, (P.L. 92-178)~ lieudinum

Crectil Increati to 95 Percent ~- Jul/ 1, 1978 (P .L. 954W).

27 . Tieral.. ol machine unit, erch-Mrmad c-, isis-.

.. . $200 .0; ce.). gu- combinatIon hcsuM aM iffe,

behaw .. - Other ""I IA- of himanns, 55 shir . OcclucaboMl

am hn~ or=nwlachaerl whMitters, or cleates, in firesurne

and .. Included! in Re -- whiceth .

25 . Rate ass mouced from 4 pencand to 2 icancent for budible

Mrs beginning aner September W, 1977 (P .L. 95~00) .

I
Table 4.-Amount of Internal revenue refunds Including Interest

(in thousands of dollars)

rligk~ d"let. sm.

by Wiiift

le, 111"W"i

k- few

k00i

Eftft (1111 as'll"i"i

In M (4) M 19) (1)

(1)

UnMid SWIM lift. . . .. . .. . .. . . .. . . .. .. . . .. . . .. . .. . .. . .. . .. . . .. . 41,7~

"W0,44kedwilliall - .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . . .. . .. . . .. . 5~74

All,~ .. . .. . .. . . .. : .. . . .. . .. . .. (S-(C)b." . . .. . .. . . .. . 291 .128

Aug- . . .. . .. . .. . .. . . . . .. . .. . . .. . . .. . 151 .617

e,"e"n . .: : : * . .. . .. . .. : : : . .. .. 972 , 900

B".."

. . .. . .

M35 i

7M 416

awirillian . . . .. . . .. . ..

.

..

. .

.

. . .. . . .. . . .. . .. W,425

liIi . . .. .

. 1) 1,111 ' 3-1

""anflatai (1- 11) aw-) . .

.. . . .. 416 .F27

Portirni (N Hwapehn) . . .. . . .. . .. . . .. .i4s696

pro"I'lerae W.W, 54,997

MdA~ PAPSW .. . .. . . .. . .. . .. SAM M

aSer"a", _Iielr) Svc). . .. . .. . . 1 :024151

4~ 4W,745

'I'Midwah'. . . . .. . .. . . .. . .. I,267,U38

Fllle-gh .. . .. . . .. . . .. . .. . .. . . .. (See . . . .. . .. . . .. . .. . . .. . .7l .

FtWwnard .. . .. . . .. . .. NOW . . . . . . . .. . .. . . .. . we'760

Mmingto, .. . .

.

. . .. . . (Daliv,,luli) . .. . .. . .. . .. . . .. . .. 128,540

Aft. .. . .. . . .. . .. . . .. . . . . .. . . .. . .. . . . . .. . .. . . .. . 70 IN

B"Oron (AW-) .. . .. . . .. . .. . . .. . .. . . .. . 528 .754

CoWlbl . . (SCIrti C-dre) . . .. . .. . . .. . .. . . .. . 350 454

Greensboro .. . . . . .. . .. (North Carolfre) . .. . .. . . .. . .. . .. . . 688 :946

j.d- .

. '

: :: - * * (Mleiirippo . . .. . . .. . .. . .. . . .. . .. . . 267,8541

Jadal-AO . . . . .. _ . . .. (FlOrift) (I_.).. . . .. . .. . :. . . .. . .. . . .. . 12535M

Nav~ . :. ., : . . .. *** : . . . .. . . .. . . . 6110.900

C.r&M A . .. . . .. . . .. . .. . . .. . .. .. . .. . .. . . 11,7113,100

onarnes 781 6w

clw~ (sm (it) I.M :821

D.cl (MI`V1; .) .. . .. . . .. . .. . .. . . .. . . 1.91

k"Sm"Oft

. . . . . .. . . . . : (k."ki . . .. . .

. .. . .. . .

. 91

Lo.h~ft . .. . .. . . .. . . .. . .. . . .. . .. (Ktinduay) . . .. . . .. . .. . . 540 .1 .

Sit CWW ""0") - - . . .. - - 310.732

I. . .. . . .. . .. . I .. . .. . . .. . Wi"

Atersew Dalt.) . . . .. . .. . . .. . .. . . ..

. 86,851

crkw (S- (b) ~) . . . .. . .. . . .. . .. . . .. . 1,8118,236

D. W.. . .. . . .. . .. . . .. . (1-.) . . . .. . . . . .. . . .. . .. .

. 458255

F.W (PkIth D*.W 93 .9189

(Wili .. . .. . 017208

oir~ . . .. . . . .. . . . . . .. (Nbeft) 247 :287

sl ~ . . . .. M."i . . .. .. . . . .. . . T71 529

la : pw .

. .

. . :, . .. . . .. . .. . . .. (MIr-) I I .. . .. . . .. . .. . . 710,971

SprirgUM . . .. . . .. . .. . . .. . .. . . .. (Sm (b) bobw) . . . .. . .. . .. . . .. . .. . . 527,178

S.'efelSSi A gi . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . SAIMW

Alb~ .. . .. . .. . . . (14- W.~) 11 . .. . .. . .. . . .. . .. . . .. . 182 .484

Au;W 504"

Ch"lln", :: : :: : :: : - : 93985

Delf"s . .. . .. . . .. . .. . . 967:597

DLim P~. . .. . ..

(Arkarmi 271 .487

4- oelil- . .. . . .. . .. . . .. S."ii.Q .. . .. . 6W .976

Oidii Gly . . . .. . .. . . .. . .. . . .. (Oft~) . .. . . .. . .. . . .. . .. . .. . : 499,16 1

. . .. . .. . . .. . . .- . : . .. . .. . .. . . .. . .. . M.1718

AMMOMp ' "'*' " : - *--'-.--( .. . . . .. . .. . . . . 1-2,XI

Sal. .. . .. . ..

. Od""a) - : . 77278

H*fire . .. . . .. . .

. (f,onaine) ~24519

Honi . .. . .. . .

. .

. (~U) . .

. . .. .

..

. 3,103507

(-S I.) ~) '' . . . 267.559

pt.ari. . .. . . .. . .. . (An-) .. . . .. . .. . .. . . .. . .. . . .. . . 429

Ford. .. . .. . . .. . .. . . .. . .. . . .. . (0 gor) . . .. . .. . . .. . . 506,184 '529

p. .. .. . .. . .. . . .. . . .. . .. . . .. . (,li

: :: : :: : : :

. : 666,6

SO ~'6~ . . . .. . .. . . .. . .. . . .. . (Ulah) . I . .. . . .. nI :5M

Sm F-diiis, (Sm (a) tOw) . . . .. . .. . .. . Z077,624

S.i (wasirral . . . .. . .. 814,759

Offl . 0 iiii ;~Op-s- . .. . .. . . . .. . . .. . . .. . M'My

ilieni. . . .. . . .. . .. . . .. . .. . . .. . . . . . . .. . .. . .. . .. . . .. . . 24,101

OfeIir raffefiaileiii~Iiii 01"i *~*... . .. * - - -*- .. . .. . .. . . . 279,916

.

. .. . .. . . .. . .. . .. . . .. . .. . .. . .. U5,217

G.= Wend766,173

1,443

I-,d aii:dee 6;C6 5~443

P.k.w.

~ diasisIo

. . . .. . .. . . .. . .. . .. . .. . 222,558

.' . . . . .." -. . . - I

BA92AW 33-42,M 2,1124,147 110" loin 309,M

1.1all" "I.M2 133,00 23fOlS Late 204"

G,'M 268.418 5.413 650 11 241

4,Q7 M343 4,512 259 4 91

124,447 820,655 22,213 3'M 245 1,492

79,972 977 .180 18,973 4M 31 5,776

53,901 661 .469 12.946 3 .23D 35 1,835

4 .330 53,480 2,276 3M 1 24

112,690 498,752 15,272 Z424 281 5,91111

675,313 W3,796 43,678 61M 1 '~ 5,019

22 .620 120.509 4.993 491 w IS

20.116 131.3M 3,007 283 70 122

311111 .1139 4jrwe IVAU 101,930 M 413,413

93,591 887 .861 33.282 2,122 67 7.2M

214 ."2 1,180,057 32,457 6,516 156 17.116

19:1,443 1,025 .099 32,390 2.132 148 13,07

173,534 674.775 19,659 1,743 2" 1'5ao

65,946 728.552 26.405 5,328 147 Z382

39,183 83,472 305 1,089 9 1,152

"i 3.111OW11124 173= IzM Lu 23.M

79,397 662 .971 27,68D 2,168 SO 10,822

62,410 445,616 19,399 7" 182 401

34,126 314.551 Io.w 443 is 480

77.300 581.375 23.700 1.350 82 3,139

24.075 230,638 12.451 317 82 297

13719M 1 .056 .605 55,289 5,982 356 1,300

81,331 565,568 24.20 1.377 SO 7.326

W&M 4.91 ISLO24 LOW 385 2LO 2

57,873 eas 151 21.062 1.284 V J.256

174,661 1,0031190 27.436 1,3W 63 1.832

U7.025 1,602,93- ".065 3,072 IQ 9.345

833W M1710 MASS 1.637 71 4.111

59 .189 454,954 22,067 989 29 2.887

31,63il 271.263 615~28 1,03D 27 2M

Sn'M 4,43OPS 22LOSO -13,4114 3.794 31AN

9,5w 68.364 8.606 246 23 92

325,634 1,499.271) 59,326 5,266 372 8,488

83,3213 343.2W 30.013 1,023 45 6M

SAM 74

.211 to= 176 n

I"

IS'= 637.126 24.126 2,075 2.059 Z548

.,842 1111,809 19,016 074 120 523

'02.877 1119,943 29.705 1.878 269 16.857

105,603 675,323 V.934 87, 49 1,19,

63.461 437~629 M'691 1.167 35 1,195

411.2" 4AO?.M 2,14j" I&M IAM 13,790

12 .794 1610,760 6.350 4.5 a 107

300.293 1,132,671 61,007 4.452 907 5,086

1 ll~ 75.663 6,137 3318 12 18,

69'45 . 736,347 53,761 3 0 .073 104 4aM

70, M 448 823 25515 1,055 123 354

28,211 226:144 16,iil 292 54 165

69.672 561,9so 26201 1,713 107 1 =

101,071 371,306 24,6018 S39 131 i'los

46.970 2D4,088 22.198 1.587 55 a

JAMA54 403 M 2BB.U7 21JW 'A" 22,111113 n

15,243 138,178 8.807 139 2 212

46955 X, 11,380 291 4 107

9:206 03.964 11 .218 297 3 231

33.852 145,483 3.590 426 71 86

424,669 2,733.303 95,659 71562 425 so5i

26:612 376219 161805 1,025 8.797

63870 415,OM 28,031) 887 14'i 233

17 373 142NO 6. 5111 52 55

29:6n

~ 1 :118

4201 339 37 217

2309M 1,775SN 58,712 7.096 183 4M

128.278 644,168 38.545 Z371 57 1,369

25,111341 guJW Mull I.M a In

226 31.406 7 .990- 21 438

25,308 233,981 19.529 1,051 6 41

zi nAm 436,435 131,18 1

. 636,435 129,738

6,443

208.127 14,431

1,443

~1' 1:11:14. 655,6618 4,509,112 1 .271 14,648 608 10,876

w ""'e

2 425 14 3N.M 1 .936.8%, 83 .017 6"'Q3 Q7 9,663

w N- Yft

a

., al.olo 15,413 1,371 12,87 1

2.0 ~ 77.111 'a MM&Bul 21 :5738l-349 48,4w II& 111) 5,01811

(d) "No - - . . .. . .. . .. . . .. . . 2,138701I ziefien 869 B74 52DW 3.875 392 15,517

. .. . . .. . .. . .. . .. . . .. . . 2.172:043 469,743 of$ 7,M5 I'oll 9,949 114.768

Table S .-Number of Internal revenue refunds Issue d

hall,IeW -- dW.., SUdiie, W

::::%i~*Piey =dW

b.o.k~ k- led

T~l I C-PW-U-

(1) (2) (3) (4)

Uri Shi . . .. . .. . . .. . . . . . .. . .. . . .. . .. . . .. . .. . . Spi 641 .11110 11M ."11,045 3,122.713

Rq~ .. . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . .. . .. . .. . .

.. 9

.3 74.119 11,9451511 3411,1131

.b. . .. . .. . .. . .. . .. . . .. . .. (S. (c) . . .. . . .. . .. . .

. . 61ON9

3,924 585,243 20567

Augi-i 8~ . .. . .. . .. . .. . . .. . .. . (MOM)raseori~) . .. . .. . . .. . 348,4019 3,125 331.130 13,718

. 1, 866 146 16,564 1 .781582 63.972

SMOk" . . .. . .. . . . .. . .. . .. . . (Sft (C) ~) . . . .. . .. . . .. . .. Suit" . . . ~ . .. . (~ (C) aa_) . . . . ..

. "

. 1414,075 955,412 9512 880595 63 325

4aw 356:96S 44:750

B.,%w . . .. . . .. . .. . . .. . (venn,art) . .. . .. . . .. . .. . . .. . . .. . .. . 147.168 I'"a 137,417 8 .122

. . .. . .. . . .. . .. . . .. . 1,065.100 7,948 1 .012,475 43,454

M cel-) . . .. . .. . . .. . .. . . .. . 1.310,217 14,976 1,278 .565 67,6,17

P~

(Ne,, Flarnpah,M) 293.294 2,757 277,622 12.496

.. . . .. . . .. . .. . . .. . .. . . alho :le I.... . . .. . .. . . .. . .. . .. .

. 315,633 3,260 301,914 Iom

All"fliell"i . M.M I'log'sill 3S3A$7

set-. ~* : : : : *("~"i 6 6*.i '712 .773% 1. :134 63's" N.,,-k . . .. ** . .. . .. ... .. . (N- Jen~) . .. . . .. . .. . . .. . .. . . .. . Z404 . 273 1'7:'573 2.2M950, 874 92.676

Mledelph.

. . . .. . . .. . .. . . . - (SIe (a) below) . 2,250,527 13,915 2

,

iszen aiin

piftsixim"

' :: : :: ~ : : , ~ : : "- (') bal-)

. . .. . . .. . 1.398,665 7.056 I.M .067 46.378

Fhchmnd (Virgors) .. . .. . .. . .. . . 1.W .10 10,387 1 .609 .428 60.709

-) -

IW,442 Z780 177,M7 8.171

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

. VIM" WAN O'llasew ~,138

"Ha. .. . .. . . . 00 . .. . .. . . .. . .. . . ((26 111) . .. . .. . . .. . . . . .. . .. . . .. . t ~MSM 10,355 1 A84,139 60431

. . . .. . . .. . .. . . .. . .. . . (,Vabaa) .. . .. . . .. . .. . . . 1.038 .BM 6,375 991,Z14 39 971

Cd.lba .. . .. . . .. . . .. . .. (S-h CSi . . .. . .. . . .. . .. . . .. . WD .815 5.M 8113.469 W,071

. . .. . . .. . . .. . . .. . .. . . (NOrth CA~ni .. . .. . . .. . . .. . .. . . 1.627,224 13.4IZ 1 .544 .404 67,413

. . .. . .. . I . . . .. . . I 1 615,166 3,716 584,541 2607.

. . . .. . . .. . .. . I .. . . .. . .. . . 2,597,4M 21,222 2.442,575 129,159

4.1 . .. . .. . .. . . .. . . .. . .. . . . (T.n-) . .. .. . .. . . .. . .. . .. . . . 1,378,667 8,W7 1,313,240 56.019

C." Rfig~ . . .. . . .. . .. . . .. . .. .. . . . .. . . .. . . . . .. . . .. . .. . . .. . .. . .. . . 1"51,06M M765 9,152ms 350"1

Uni .. . . .. . . .. . .. . . .. . .. . . (,- (d) bi-) . . . .. . .. . . .. . .. . .. . . 1.459 .9w 10,503 I .395'M5 52,509

C~ - . . .. . . . .. . . . (5,ie (d) ~) . . .. . . .. . .. . . .. . .. . . 1.994,879 IS'"I 1,905 .994 68.393

DWrift M1111illen) . . . . . .. . .. . . .. . . .. . .. . . 2,9~149 20,167 Z829,907 1012M

Inchanevils . . .. . .. . . .. . .. Oral-) 1 . 1,667,623 8,001 1 .589 364 68,101

~11 . . .. . . .. . . .. . .. . .. (K-,,,*) . .. . .. . . .. . .. . . . 970.573 5,837 921,051 42"

Parklill-9 V"PriS) 529,381 3.616 507 .424 17.755

R.00se .. . . .. : : :. . .. . . ..

. "l in ky" 4714 16

Abe'de", ~. . . .. . . ..

.

. . .. . .. .: j : . .. . . .

.. . . 185,081 2AM23 165'00? ITT

CN-W - - (,- (b) ba-) 2.779,672 24:~ 2.6,17:5"79 104,911

1). M . .. . . .. . .. . . ..

. Q-) 792,237 9.303 722,112 59,076

Fargo . .. . .. . . .. . .. . . .. . .. (North Ukata) . . . . .. . .. . .. .

. . 175.051 1,818 157,340 IU72

M"~ . . . . - (~) .. . .. . .. . . .. . . .. . .. . . . 1 .420.375 15.435 1.338.091 643%

Orli .. . .. . .. . . .. . - . . .. . . . . . .. . . .. . .. . . .2,679 5,7M 401.413 34.667

SI ~ - .. (M-) . . . .. . . .. . .. . . .. . . .. . .. . . 1,4113,546 13,969 1 .319 .733 67.094

S1 . Pad . . .. . . .. . .. 1 .238,478 12.171 11159,810 64.61 4

(See M . . .. . .. . . .. . .. . . .. .

. M,532 7,158 832,819 45bN

. .. . .. . . .. . .. . . .. . . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . 86751,540 U.270 &JUAN 455AN

Nb~- . .

. . . .. . .. ple~ . . .. . .. . . . .. . .. . .

. - 377.667 2.5112 357.370 17285

A~ (Sea (f) . .. . . .. . . .. . .. . .. . . 2,452~116 ISAM 2,320 .908 112.488

.

. . .. . .. . . . (W-ro) . . .. . . .. . .. . . .. . . .. . .. . . 1" .354 1 .976 132,U7 9,878

.. . . .. . .. . . . IS. M Now) . . . .. . .. . . .. - I . 1 1,6511,747 13,310 1 .548,215 94.633

0- . .. . . .. . . .. . .. . .. (C.1~) . . .. . . .. . .. . . .. . . .. . .. . . 911.751 8,637 853,402 48.714

U1!4 RaO .. . . .. . .. . . .. . .. . . .. . .. Ql~-) . . .. . .. . .. . . .. . . .. . .. . . . 574,157 4.923 ws'w 32,549

~on.. . .. . .. . . I . . .. . . .. . .. . .. . .. . .. . . .. . . .. . .. . . . 1,156.934 8.046 1 .095.42, 50.975

00- Ofty . . . .. . .. . . .. . .. . . . .. . .. . . .. . . . 810,615 6.548 756,078 45,903

. . .. . .. . .. . . .. . . .. . .. . . ~ (Y-) . .. . . .. . .. . .. . . .. . . .. . .. . . 664,959 7,349 613,116 43,171

. . . .. . .. . . . .. . . .. . .. . . .. . . 12,129.910 1112,230 12.015,002 usim

Anon-P . . . .. . .. . . .. . . .. . .. . .. ~I) - . . .. . . .. . .. . . .. . .. . .. . . . 146,713 1 .55. 136,099 8.784

B. . .. . .. . . . . .. . . .. . .. . .. . .. (~) . .. . . .. . . .. . .. . .. . . .. . .. . . . 260.787 2,915 236.682 10,823

Hellila .. . .. . . .. . .. . . .. . .. - (M .nlari . . .. . .. . .. . . .. . . .. . .. . .. 236,937 3.527 213,503 19,293

Ho,idld. . .. . . .. . .. . . .. . .. . . .. . .. (H-1i) .. . . .. . .. . .. . . .. . . .. . .. . .. 3D5,625 3,269 290,183 1 tgr

4.984394 35,932 4,678." 264M

754~636 5.01 714,478 33.652

POM" . . . .. . .. . . .. . (Orewn) .. . . .. . . .. . .. . . .

. . ..

.

. 892.015 8,711 833,196 .9.108

R. . .. . .. . . .. . .. . . .. . .. . . .. . .

. (~) . . . .. . .. . .. . . .. .. ..

. ..

. . . 269,674 2.088 2!14.720 12.485

Gas ~ City . . . .. . . .. . .. (UMh) . .. . . .. . . .. . .. . . .. . . .. . .. .

.. 409,247 3.141 M.460 20232

S.F ra - .. . .. . . .. . .. . . .. . .. (Sae (.) ~) . .. . .. . .. . .. . .. . ..

. 3,30,519 24,203 3,093,1123 185,139

S,ifirlie ~ . . .. . . .. . .. . . .. . .. . . .. . .. (W-,r,,.) . .. . .. . . .. . .. . .

.. 1,262,412 11,906 1,176,224 72.445

Ofk.WW-r,W."OP~~... . . .. . . . .. . .. . . .. . . . .. . . . .. . .. . .. . . . 224.331 m 1911,116 SSAM PwAo Rco . . . .. . .. . . .. . .. . . .. . .. . . .. . .- .. . . .. . .. . .. . . .

. ,575 34 30.138 14,342

ol"I, Mb 7. 765 159,978 18,742

RM. .W.

I3,14M G" IMAO

(.) caf~ . . . .. . .. . 8.291,913 60,135 7,772.457 449 .531

(b) lih~ . ~ . .. . .. . . .. . .. . . .. . .. . 3,666.501 31.356 3,480.398 150 .415

(C) N- Y~ 5.343.053 39.016 5,101,371 196,319

~') " - ,

.&I ' 77, 261 . 3,20al,289 120,902

1) p 3 1 20971 3. W .M7 128248

M .. . .. . . .. . . 4:'1 41 '1 : 1 ON 29 :209 3 '869,123 207.12 1

I District office details word not 8~ailabl. for Iaf.nd ir-rsals pending classification when FY 1979 booKs -e closed .

Table 6-Overassessiments of tax as the result of examination

(Exclusive of claims for refund)

Alaiiii,lt PACOMWArdW

"aah1978 tm im Il"

Teli I .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . . .. . .. 132JIM 1331M IM2.M 0:11271741

dwidael .. . .. . .. . .. . . . . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . .. . . .. . .. . 106,458 108.31M 97,962 W,358

A.1-1~ .. . .. . .. . .. . . .. . .. . . .. . .. . .. . . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . .150 1,453 10.809 16'536

Cofporatan . _. . .. . .. . .. . .. . . . .. . . .. . .. . . .. . .. . . 11,002 ID,498 158,810 163.538

E.t .. . .. ~ .. . . .. . .. . .. . .. . . .. . .. . .. . . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . 4,183 3,974 28.263 34,230

GM . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . . .. . . .. . .. . . .. . .. . . .. . . Us 502 1.532 2,242

Ude . . . .. . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . 4 .040 4278 SIM 7,048

Firpl.W-1 .. . .. . .. . . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . 4 .9W 4,051 5.373 9.791

57

lll~ Gle Ew .

(5) (a) (7)

191728 2017 K117

3AIC 4216 7.=

175 20 420

SO 10 360

495 62 1.481

763 64 N

430 53 .242

39 11 131

456 83 654

1149 115 1.063

87 12 320

52 6 181

2A21 n4 47011

482 100 "112

912 68 1,973

451 w 1,671

229 42 1,093

3M 51 Iza

45 13 I'M

2~1" in 10293

12128 68 Illes,

39 1.0m

139 35 761

274 58 1.627

85 25 725

1 .090 1 IS 3.246

209 32 11160

I'"s M SMI

293 24 1,276

399 39 1,413

548 77 2,220

399 45 1,713

220 30 1,117

96 is 472

&IFF M 11.1"

6, 13 318

803 121 2.050

379 & 1.303

104 21 35B

.9 78 IAM

M 0 Sw

426 0 2.231

398 62 1 .423

36, 67 on

2.04111 .47 O'Yal '1

12 347

510 116 2.43 3

46 23 204

407 87 2.0%

204 45 749

110 22 655

220 19 1 .2M

207 72 1.007

266 49 1,008

4.340 m IO'M

21 2 20

68 6 290

75 20 519

97 w 124

1 .7313 1 TV 3A2I

220 35 560

1 w 32 784

58 29 294

76 25 313

1 .446 120 4788

359

M 13 10

31 1'"7

6

5D 1 1

162 12 107

3.192 299 6,309

1.167 188 Z97D

2,217 252 3 .878

692 0 2.689

NO 92 21654

D17 2M 4,528
so

Table 7-Number of returns Hied, by Internal revenue

regions, districts, states, and other areas

bftnw am,mmum fghmak, magma. stiame aacI

(Woaaw-adad by abroft momb

Toam - h.WhW Dool-Ocad

aaaaa Iao,aaa go, .01bragad1aa Fiduchay P.W-~* '-' EmIsIa go, k-aa go,

ahamm, M baftorm of h6b) (1) m m (4) (5) (4) m

11afto, I. . .. .

. .

. . ..

. .

.. . .. .

. .

.. . .. .

.

. .. . .. 140,174A45 BOAM70 IAXA54 1AM" linize 2424~M ISOA06

11.1.411.ft 9 - . .. . . . .. . .. IqA2Sjg7S 1ZA30A22 lit 7 SWIM 1"Aft MAN 24AN

Ago. . . . .. . .. . . .i . .. . . .. . iika i~i ~1111 . .. . .. . 1,184973 8MUD 722 A.4346 9,790 8,097 22,054 1 =

Augusta . . .. . .. . . .. . .. . . .. . .. . .. (htW-) . . . . . .. . ..

. 687.952 .9,747 41,592 9.683 3'&~ 11.911 M4

13- ..

. .. . .

.

. ok.~ 3 695,782 2.452,235 223,094 W'5'6 Iowa 78,700 4,682

Brook" : :: : " : :, b: . . . 4.139,566 2,766,931 265-W 0,295 28,901 113,I7a 4.692

8100. .

. . .

i

.. . . .(Bar, (0 becra) . . .. . .. . .. 2 .W .487 1327,311 1575N 36 7 ISM4 .5" 3,366

Ikkam- .

. . .

.

. .

. (Va`r`o"t) 331,760 199,NS 20.90B 4.735 2,645 7,327 340

14a,0o'd 2,V 16a 1,428 .153 152,13M 20,222 $6.414 ZU2

(Saa (c)bak~,) 371.028 1 .813,632 205,372 114 .427 35,222 124,213 4,563

Fort-th (N- HoroOft 588 .183 383AW 35.883 6.= 3771 11,273 6m

Pr.wd .

. .. .

..

. .

.

.

. . .

. ..

(R~ IW.M . .. . . .. . .. 600.978 C1.739 34,ia2 9.6213 3,M7 IBBX 531

i.6 I 1"24im Izagaml 1,152AII 2FOW InAn 343,724 I&AN

c * ' -

3,290.394 2.172.7" IN,- 43-169 26 .M 54,210 3,110

N-Irk .. . . .. .. . . .. . .. . . 5.033 .595 3,198,487 313,647 U .052 4Z227 MASS 5,90 7

(S . (a) 4,376,704 2.957AM 291,551 94,554 36,356 68.997 4,183

F"burgh

Fb~ ~

(S-(.) 2:578,01 3 1 .796,778 160,716 39 .629 MODS 29,826 1 .966

ass 923 2.085142 170.699 30,547 24,277 47,763 zm1

worrim.. . .. 554:273 245:764 21.381 10.189 2.463 9.040 467

la,asaogmi6giow---.~ ~.. 1 . .... . .. . . .. . .. . .. . ..

. .

.. . I. ..

. .. .

.

..

. .

.

.. . .. MUZU14 UMVIS 1.147,187 Iffin 184 .050 354" IlAll

W2 1.988.131 1.,738 N .411 MIS 49,319 Z040

. . . .. .

.. . . .. . .. . . 979,.ki 1 .M6.W2 90,6115 15,950 14,541 28 .488 1,340

Cot-b. 13.637,500 1 .095,964 112 863 9,866 12,328 24,385 1=

G-rob- . .(N. 286552 2 202-128 165iii 24 .463 26,170 55JD43 4452

. ~ (Mma'w) . 1.23.

612

56.231 6,380 11,028 17 .646 om

J.d .-A.. .. . .. . .. . . . . (FIok1a) .. . 6.252,.42102 3,87NIBOW37 600.666 07,011 49,434 146,519 9.442

Nastaft cr-) . . .. . .. . .. . .. .. . .

. . . 2,720.204 I~M.450 121,123 19.868 27,331 33,W 1.896

113"1 12.152.791 IAIMM GM7 149=4 22szo 17,170

z 082 8"'We 160,639 36,285 22.055 40,668 Z924

(S. (d) W-) 3 . .. . . .. . .. .&76749 602 '2:~'Sw 219,191 49,057 27.727 63~DM 4.008

DM.fl (LOOV-) 5, 3 M5 '19, 292,478 63,W 46,815 85,619 3,889

k4.. ..h . .. . .. . .. . .. . .. . . 3,M1755:7M39 2:185,538 196,711 3gln 22D57 Sim 4.081

Low"Ma . ~ : :: . . .. . .. .. . . .. . .. . .. . 1.900.025 1 .2712- IM,929 19,092 20,,4MS 28,739 1.579

ParkoroW,Q . . . .. . . . .. . .. . . .. . . .. . . . . 076.615 M.IV U,141 9.042 %M 152M 698

UM-M A 19,051038 12~11 .292,258 M4,m IPL644 - - 34.655

A~ 451 .W 27 362 27,310 4,351 5,735 7,209 I'ou

cwc.g.

.

. . .. .

. (r (b)t~) 5,438

.673 3, 6811 .385 323.919 109.592 M."S 98,921 B8!14

D.W`ak . .. .

. Q-). . .. . .. . . . . .. . .. . .. 1 .9M 414 1 .185. -7 1",081 33.100 21.682 34.161 4,839

Fgrg~ . . .. . .. . .

.

. (NoMDako4a) . . . . .. . .. . .. . .. . ~:Jn MI, 7" 4,633 5,424 7298 1,502

(Wim-Wn) . .. . .. . .. .

. Z937.50 1..7,132 92,139 60,040 M.171 U,920 3.724

. .. . . .. . .. . .. . . . 1 J0571511 Baoiw 70,342 13,762 1210R 20,902 2,846

M L.A . . . .. . .. . . .. . .

.

. .. . . .. .

. **. .. . .. . .. . .. . .. . . 2.OW,974 1 ."3,WS 195.185 43,138 251C36 53,50D 32W

St fw .. . .. . . .. . ..

. =01) . . .. . .. . .. . .. . .. . .. . )

. 2,582.947 1 .666,795 149,672 3D~IM 25,665 .7,516 4,434

. ~:

: 186'.996

. . ..

. .

111 .240,016 132,516 IZ,641 19.477 20X9.971 4,212

17,247

Atkxpmacke . . .

. (N-W Mara-). . .

16241sm J5431W SUAW 7T.034 299,450

73D.088 484.W 36,421 5,493 7,851 11112"DO 485

Aust, . . . .. . . .. . . 5,.M 3.161 .450 229,,461 46,M 55.421 M'm 3,717

Ct.Y- - 315:T69 187,371 1a,ow 2.757 4,3W 7,053 368

Dw~

D- 1 18117

3.61 1 289 2,251 .211 199,M7 51037 57AM 3,193

.888 I.184AW 107,327 23,701 MUS X516 2,173

' :

212 No "8.457 69,837 8.443 12.318 20.617 902

2 196.'B6 115,Q9 10,298 151800 "oO3 12Z

Owah-g City cm~) M 7 1.099,074 106,401 16,517 IPAW 3),983 Z385

I . .. . . .. . .. . . .. . . (K-) .

. B

; :.,w 949,553 110,275 19'sm 15,478 26M Z899

wallorg R . . . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . .. . . . 2W 5`31- tax%-, W Agg,", M". =A. 403A. 27,M

n-h-P (Aft") . . ..

.. . . . . .

2'~j

. 174 7. 1,047 4,931 4,813 156

BOW : : 5WIS13 (Idw.) . . .. . . . .. . .. . .. . . .. . .. . 346' 29, 15 4.097 7.944 10,309 58

HW- . '967 (MC.".* 546386 M4,457 34 .01 5.19, 7.610 10.719 845

HwidWU 614,918 .489 37AD9 5,072 6.832 14,496 564

Loe

PI-o (A-)

AnPW . . . ..(M-4) B'9632 5,861 (rw (a) o"i .332 5115 .215 109,50 126,304 150.643 9.880

B34 9 6. 53 97 gas 19.866 14,935 26,411 1 .690

P .W4 .. . . .. . . .. . .. . .. . . .. . .

. (01-D* "0ow 1 7 1 5X- ..175,31M 1 D, 19.048 23.573 31,107 2.2N

p.. .. . ..

. ~) 516.'4'0'0 339,619 24 .607 5.423 6,085 10"a 342

SM Lake City ((UWh) .. . .. . . .. . .. . .. . .. . . .. . .. . .. 776,817 5D5,288 32,369 10,968 11 .779 16,150 528

S.Rackoo .. . .. . . .. . .. . (Sw(a)bWow) 6,511053 4,061.686 ~.367 73.155 93 .346 85,347 8.465

Soaft t*Vb-Q 2JW:i3i 1,654 .157 -162243 27 .725 32284 43m 23M

Omaawo.6~6;o~~: 728,764 442.202 81 U5 m 653 ?An 6V

P~Fbco . .. . . .. . . .. . .. . .. . .. . 271,174 76,2S8 13,106

Od. .. . .. . .. . . .. . . .. . .. . .. . .. . . .. 356,024

774 73 275 32

OL580 17,979 23 SID 7,221 SM

T.1.1a w Shaaa gaI dw- ab-

(a) C.Mft 15-16DRIS 9,92321a I .M .582 1,82,703 219,650 235,990 18.345

(b~ Mroa . . 7 1w ' No

4

921 .01 ~6,435 35333 74,9n 119,892 13,066

(c ~ York .. . . .. . .. . .. . .. . ..

. I,

.340 .0M 7,215.091 703,9M 184,479 91,789 303,989 14,173

(1) 1 1 (1) .1 ' 1 4..,196 MAW 85.3S2 4o,782 103,700 6XV

(I) .954 .717 4,754,671 452267 134 .183 58,361 PSAM 6,151

T.. .. . .. . . .. . .. . . .. .. . .. . axnw7 5,412.561 429.256 90,202 107,358 129,623 6,910

Wickkies Fc,,,a I M. 1040A. 10"A, 104OSS-M. 1 WDC, ard 1042 .

I- 104DES.

F~ ;041 .

1- 011*

fthxWFc,r,mII20.II20SPKimo(Scta,d.W. 112DLI120M).1120S.11204)1$C .112DPOLIIZDF,"IIM

k.k.W 1-705 " 706NAL

Table 7.-Continued

Waa d dktktk I&OWs mard

d1ahko l

a*- Biala

tkdW 1201- IWW . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . . . .. . .. . .. . . ..

mrs"Magaft Rag... . .. . .. . . .. . .. . . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. _

No" . .. . .. . . .. . .. . . .. . .. . . .. . . frae (C) be1m) . .. . .. . . .. . .. . . .. . ..

"oft - . . . .. .. . . .. . .. . . .. . . . .. . . .. . .. . . I I

B- . .. . .. . . .. . .. . . .. . .. . .. . .. (~) .. . .. . .. . . .. . .. . .. .

(S. I.) b~) . .. . .. . . .. . .. . . .. . ..

= (Sm(c)~) . .. . .. . . .. . .. . .. .

au,%rc~ .. . . .. . .. . . . . .. . .. . .. (Va""o"t) - . . . .

HarOcr%1 . . .. . .. . . .. . .. . .. . . .. . .. (C~) . .. . . .. . . .. . .. . .. . .. .

mar~ (S. (C) bWow) ..

(hkar H .Iroatkr.)

(R~ W--O - -

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

awar,or, .. . .. . . .. . .. . . .. . .. . .. . (Mfiry"&D'C .) .. . . .. . .. . .. . .. . .

N-aA .. . .. . .. . . .. . . .. . .. . .. . .. (N- Jersey) . . . .. . .. . . ..

PNI@dMPN& . . .. . . .. . . . (Sae(e)baka) - . . .. . .. . .. .

(' (a) ) . . . .. . . .. . .. . .. . .. . .

. . .. . .. . .. . (Virgoi.) . .. . . .. . . .. . . I

wOrri"Mm (D*-) .. . . .. . . .. . .. . . .. . .. . .. .

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

Aftft . . . .. . .. . . .. . . .. . .. .. . . .. . .. . . .. . . .. . . _ . .. . .. . .. . .

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

r."") . . .. . . .. . .. . .. . . .. .

. .. . . .. . .. . .. . .. . . .. . ~-) .. . . .. . .. . . .. . .. . .

.. . . .. . .. . . .. . .. . .. . .. . . (kkkaoaaw) . .. . . .. . . .. . .. . .. . . .. . .

Jb&.Wrr4M .. . . .. . . .. . .. . .. . .. . . (Florida) .. . . .. . . .. . .. . . .. . .. . .. . . .

C .11, . . . .. . . .. . .. . .. . .. . .

cwm~ IS. (d) W-) .. . . .. . . .. . .. . .. . .

DM .ft . . : : :: : :: : :: :,* (Nfio'%w . . .. . . .. . .. . . .. . .. . .. . . .

kkkar-ooft : :: : -- - 0 0-) - - - -

. . . .. . . .. . .. . .. . . .. . .. . . (Kmtucky) .. . .. . . .. . .. . . .. . .. . . .

Parkwitkn .. . .. . . .. . .. . . .. . .. . . (W- %,a") . . .. . . .. . .. . . .. . .

111damad Ragoon . .. . . .. . .. . . .. . .. . . . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .

Ab~ . . .. . .. . . .. . .. . . .. . .. . . (SokAh Dgk~a,) . .. . . .. . .. . . .

cftw

() . kk~ .. . . .. . .. . . .. . .. . . .. . .

Fa,W . . .. . . .. . .. . . .. .. . .. . .. . . . (North Dokc4a )

mt~ . .. . .. . . .. . .. . . .. . .. . . (W-) . .. . .. . . .. . .. . . .. . ..

011.1. .. . . .. . .. . . .. . .. . . .. . .. . . (wok..k.) . . .. . .. . . .. . .. . . .. . .. . . .

St LOLM, . . . .. . .. . . .. . .. . . (mookxxI) . . .. . . .. . .. . . .. . .. . .. . . ..

St. ftd - ~~ . I I ~ ~ (hfi~)

SpArrow IS. (b)

saaawalamI maga. : : . . .. . .. . . .. . .. . .. . .. . ..

Aboc~ . . .. . . .. . .. . . - - . .. (~ MeWoo) . . . .. . .. . .. . . .. .

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

Qw~`a"`a ~~) ~. .. . .. . .. . .

~w . bocr~)

DLAW 11ock

~0~

. .. .. . . .. .

ow~Oty

wamha~ I . . . .. . .. . .. . .. . . . . .. . . .. . .. .

Anot.a,a . .. .. . .. . . .. . .

Boi. . : : :~ . . .. . . .. . .. . .. . .. . (1cle.) . . . .. . .. . . .. . .. . . .. . .. . .. . .

FOW- :: : .. . .. . . .. . . . .. . . .. . .. . (W-.) . . I I I I

mor. .. . . .. . . .. . .. . .. . . .. . .. . (m.".00 . .. . .. . . .. . .. . . .. . .. . . .. . .

t.,a aromas . ~ . . .. . . .. . .. . .. . . .. . (-- (a) ~-) . . .. . .. . . .. . .. . . .. . .

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

R- .. . .. . . .. . .. . . .

M (Sao (a)W-) . . .. . .. . . .. . .. . . .. . .

Saaft . . .. . .. . . .. . .. . . .. . .. . . .. . (WIaI GIo,,) . . . .. . .. . . .. . .

Boom of brow"SolawI OWN- . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .

poark) 10oo

mar . .. . . .. . ..

TOW. W Iftmoa rodwaa O .W

ATF Rag- Eg. Inal

p1g. doct-ft

(11) (12) (13) (14 )

2m,m 29MIAM 45CA79 1.2113.745 53%745 1 .013,489 SAKM

30'"? 3.724" 3I.M 251.2" gain 90 .1" M.200

211 .286 MIN 6,536 a .972 25.288

MIND 136,452 5.461 3,960 8,aO5 14,899

6,22B 632,512 31 .771 38.617 9

.

546

3,817 7W361 50,787 a

128,694 B8 197

071 1 05'~678

4,040 433.734 28.376 12,574 19,626 56 .M

662 T7,436 3.334 2.113 2,911 9,574 5 .007 395,681 27.847 8, 01, 11.81

'

7 130911

6,746 84M26 75AN 1,

4"

687 23,372

9A 114,415 4.788 2,07 6.015 17.06B

639 116,628 6,035 1,989 2.594 12.958

23AU 1,2104,12 Ims" 153joll 01,234 112.040 WFV

4,735 565 .677 23.720 9.133 16.417 ia2.540

5AD6 9m'447 66,527 IZ973 22' 957 273,687

4,935 752,6S4 37.813 14.9m 27,FO7 85,749

2 .419 425 .961 10,726 22.329 48.907 4,879 59BQ43 IN'51 12 .05a 2D,666 82.467 22.724 172 .200 IM.681 2.620

1

.422 Z713 29,629

140 4. Bull 5DA64 1WA49 19.092 140,w -,in

4698 632,433 27 .891 16,849

B

2:277 10.627 21,347 1 .470414,498 10,468

'

043 1 49.872

2D30 340 .182

7

.344 7:940

2

.3" 39,670

4,541 676,916 m 11,775 23036951

1267 273.953 5.182 8,194

81,379

32,

10,540 1,252.464 M.073 38,381) 22.672 359.708

2,793 510,150 - I O.W 10~mi 21,310 162,-408 =463 3ANAU 54j" 121JU "All Min 639" 3,715 456.142 27.456 21,341) 9,880 MOM 155.185

4,875 SM.394 16,364 2D.010 14.901 27,485 103,ODD

5A% 859.654 14,727 41 .480 MAN 38AN 137AM

4,7W W035 17.5M 13.41~ 3"m 73.421

2,368 373,764 8.579 10.~ 17.M 17,447

913 187,= 3.9W 7.153 10.0m 20.695

41 .613 3.5411511 V.1" 20SA40 "All 1 .579 inmmg S32=

100,062 1 5,775 '286 6.983 16,949

8,375 862.965 50,188 17:025 A

.

.10 192.194

5,789 387.560 24,457 B784 21 .619 32,OD5

I'mi OD'371

6,879 535,406 31

8 .864 2.5% 7.6m 16.846

.1336 n.532 23,621 WIQ

4 483 M.849 12,191 5,408 ISA38 35,482

4,21 SM.709 21.7512 161M 23.765 56,05

4,181 435449J&M 3 27,185 32 .475 10.557 27,466 96,9W

.965 31 18, 26 8,74, 14,413 .5b,

21,611 3AIm UX54 114,527 UJIMP 158AM login 758 148.369 3 .957 Z904 61160 21,976

6,272 9IM56 27,615 25.211 24,"3 30,443 42B.5W

"1 70.156 2,153 1,982 4,779 15.479

~4 26,209 :257 760.81 8 M .285 34.Wl 142.752

338 15,700 M6 15 371 .502

.617 91.0,8 74 257,840 6,607 5.812 14.364 35,738

,768 459 .730 10.9DO IIA47 16.050 111 RM

3266 350,277 6

.300 '

: 325 .7923 68.753

'537 320,335 10,258 7 68D ~ :736 45.458

MIJTM 4.509,00 TZM4 login 77AN ISSAOD

1

.3

260 48945 1,646 2,102 6.282 23 385 .2378

659 1 1 ?~"' 4.790

3, 175 0

.679 ROW

1 .817 112 .543 5,340 4.349 9,940 28,941

1,597 104,717 7,432

1

. W9

2

. 643 25.

7.207 1,584 .725 28.789 ID4.IW 111,694 43

.

997 319,304

1

A2 266 .311 9, 5.829 , An

W.

I " 2.978 1 5V3270, 7 .224 20,a95 M6 7

590 :g,n 2,51 2:1 6,737

2"'

~2 1 .443 M.719 4,992 2

..

12M 31,215

7XI 1,177,601 22 .661 79DO5 21 ni 689 391,789

2,614 513.50 20.961 21,184 9,127 - 139.345

379 191AN - In M4 "'Ce 20AN 51 179,801 416 676 - 4 7

328 12.DB3 352 38 1,135 2oi1 2

(a) caof.. .. . .. . . .. . . .. . .. . .. 14,518 2,862,326 51,450 183 .259 40,085 88.686 711 .073 (b) 13U . .. . .. . . .. . .. . . .. . .. . . .. 12,340 1 .207,696 68~914 25,769 -.V3 220,778 (.) .. .. . .. . .. . . .. . .. . . .

. I6.N5 2.250,907 165,168 35.558 4B356 310,572 (d) (IN. . .. . . .. . .. . . .. . . .. . .. . .

. 8,590 1002,536 43BW 5D3W 24 .781 ~.410 258 .675

P-11./K. . . . .. . .. . . . 7,3~ 1 .178.645 56 .562 25,648 49,3" 132,656

.

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

. 10.529 1 .673,474 53.884 Q .496 36.593 65,024 56D,305

CokM CmbnW

((98))

F=709F.

oka 940, 940PR. 941 . NI PR & SS. 941 E, 941M . D42. 942PR. 943. 943PR, CT-1 . *W CT-4-

~ ;O) kx:AkIes F- 990. 99DPF. 990T. "DC, 5227, - 472D.

I ) fthidu Foram 5501, 5500.

5500C

. 55ODK 4848 . 484M, and 990P.

(12) kKkId .Fo,,,a 7, 5.11. 4705, 4NO. 4707. 4708. AIcoW Ed. Tak Reg~ a,,o Tob&ooo Exowe I= Roo83) rck4*3 F=W. 720M. 730. 2290, 11D, IIC, axI 4630.

4) WcXdmFor,,m 040)(112OX.26BO .4W8.7004.T~t.112DL&M,7OD5,99DAR,078,5=SwiW5M.lo4l&"2438.
Table S-Retums filed, examination coverage and results (1979) Table 8-Continued (1979 )

fthFIM

CY IM

61

Addill-I In Sid PenON" I

(1, mlJ*ns of dollars)

M .V I.maii OftoNew

aft) WAW- P..",

PAMM AudhonI. G

Qf

..k

t

. P-N

hwhidam, T.W 47xis,411 2W7U 1,354,3111 199,907 1,04MI MI %

F- 104044 .1411rd 25,749,451 8,538 171,701 11,747 191 As J87

NB ~110.0004renzail 10.147,U5 2D,045 205.051 20.490 2S3586 2 .50

NO 11~0,000 Und,irS15 ODO 12,627.936

M LOODUnderli5o(POO 24,227,838

17.119 210,829 SassY 254,555 2.25

154,56) 561,713 87,751 704.024 2.9 1

NB MM-1 - 966.659 W'2013 Q.247 IA34 101,989 10 .55

8 L~51 oOOD- 4,043.915 33,504 95,323 31790 132 .617 3.26

13 SIO,ODD uri'Jsr li 5,la2,040 35,258 SD.117 7,W 92.930 141

B SM.ODD shil 1,443,728 59.536 21.330 2.400 81266 5 .7 7

Flilot" 117"1478 IkION, 64

I

. S.V- law R- I. ed. P- T.

AqWft k~ C~ hViiIft AU51- Q~ AGINNOW, AW111-

81,344.3 SHU US.1 SI.M.6 "JIM *M 1117111 12 24

W.2 41 .5 lo W.7 (tsm 241 86 12 28

93 .0 U.4 3.0 149.2 4,681 255 106 12 M

75 .1 62" 7.2 I .A 4,365 2W 127

115 .4 225 .1 19.3 359.9 2.116 401 220

22

M

laffi-lik.14 TOW

Fawri 1040aWKIMIS

NOSIC00OUnd., $15,000

NBSlLOWUrdeS5D=

373 .2 32.2 .8 4VII 6,198 799 SM 13 44 NB 350,ODD - -

121 .2 68b .8 190A 3 .617 718 208 14 22 a UrK* $10,000

95 .5 34 .3 1 .7 131.6 2,710 685 225 11 10 04110.0OD-Je,113110M

413 .7 26 .2 1~2 "1.2 6,950 1.227 516 11 27 8 $30,000

10.170 u 104J tote 10.375 01 34 2 2

P i - lligglin WIN$ 149 3MY4 255

CWPWWW. TOM I=J71 142,=O a

Aa,iils M O.Dorhid 123,526 8,273 7

U~ $100 .000 1 W9.614 40.156 22

SIOO.DDDun*ii,$I MI 674,357 531507 13

W'4 904 9,721 1 31 29

142=7 7AG 4,1374 4,137.3 214M sm 911 a

11280 6 .70

40,178 4 .1 9

53,620 7.W

51 MA und.$10 MI 133,719 .25,625 4 28'an 21.4 1

SIONLhWilloomi 24A21 BA73

310010111mxt- 4,734 3,956

U73 A29

3,957 83.59

60 .9 614 1,sla 1,350 32 36

2DY9 M7.9 31895 177 26

393.0 393.0 13.729 19 so

OM-afta, Yiia o

Un0iii' 31 001WO

3100,000 -16, 31 W

590 .7 590.7 70,544 11 Slowllnftslooml

Z804.4 2.6U 4 708,893 339

NO

4

SWAN NualaNiiii Corp. OLSON 11,513 10 IIAn 239

F-II"DW 7,776 IAW 2

EMON, TstNI 158,045 MGM) 21192

G- Eitato UnO.', UM

.000 12

.2,330 10,867 1,874

Or= Eiitws M,000 exi 35.715 16,173 31 8

ant 194.811111 lo.M IA41

2" 2LO 2,430 30 so

IAN ism 41.1 41.1 21,083

2L= IL50

12,741 10.42

16,491 8.1 7

11 .7:4 M

lrmo,nii, Eirwis, ard! Gft Total 93,004.175 sn'758 1 .369.815 199.907 Z0112."at) 224

liecla. B!"J" 71,70 to"

25,161112~91113 KM 24,211 0

Includes Fohn I D40 with standard deductions and Fonhs 1040A.

Nontousin returns.

Adjusted grots, in orne.

.8u.i returns .

Balance sheet assets

Totals "ynot add clue to rounding,

M104 L31

I"t AS

37

SUA LY 649.1 2UN LuN 11 is

flas 4.5 103.1 9.070 2,424 13 18

SIODW~-

saian ftw- Carp.

F- fix U.

laft". real

G- Evae, Und. S300,000

J

-.8 1.1 .5.9 27,504 3.5311 10 22 G-Esz*SJ0oOODs%IISM 11 1344 12ASO 11197 25 m

6.332.0 549.1 35 .1 6.9162 12.113 176 19 24

GYJ 1.0 "? 151 22 14

ILS M I" 'An 20 33 n

Ino,r,a, Eirta~ aW Oft TOUW

P

4811,434 496" 119.2 1102 240 SaW. GuiIii, C-cil4The reccairnanded additional tax and penalties for 1979 reflect the amounts rec-snanded by OmMiners at the Conclusion of the examinallm. The rec.

ohirnendod arnounts for 1978 are the antounts recominanded after taxpayers' appeals of the emirdners' recOhniendediOns In district Conferences and pflor to an appeal with the Apostate DhAsim. For 1979 the Service established a one-level of appP.1 systairn and efirninated district conferences.

Senorice Center no change rate by clan is not thrailable . No change resulted in 33 percent of service Center eminnations .
63

Table 9-Raturns filed, examination coverage and results (1978)

ll~

FVAd

CY Is" R- T. 0.10-

Agiiints Aa0- C~

41'294

liww~' Tw 8sx"o 3DIA33 1,31MAIII 1114,1190 1 - Lis

To, P.M"

C.-W

F~ 104DO-lard 27,901,848 7,882 171,303 6.959 186,1" .67 39.9 35.9 .7 75.1 1.931 209 100 12 M

Wuwii1$IoOOD~W'- 11 .992.130 2DM 286,a24 Q.337 347.98~1 2.90 94.6 58.8 3.5 157.2 4.542 205 95 12 a

5,2731 .7 .9 25.7 5.746J . 9,664 326 152 19 26

Pat S~ 0 000 Unft$15 DOO 12.853,606 21,416 267,575 45A26 334,817 z So 93.7 83.3 6.3 183.3 4,375 31, 38 2 19 NBAIO UnftS15000

M 5 5:M ~ SM." 21 .646.M 19.3m 458.369 63,539 571 .230 2.64 71 .7 138.9 11 .2 Via 1,40 303 76 1 27 .4; 5 OMOD Und,i, 1150 .000

Pat WOOD are - 799M 59.493 22.675 1,047 W,215 1040

7257 6,10

8 undar $10,000 1 4,311,616 39,071 98,497 3.677 141~245 328 122.1 66.5 a 179.4 3,125 674 216 15 25

9 31 %DDO under MODO 4,910,SD3 46,934 46,654 6,319 W .907 Z03

B SM,000 a,di 1207,639 61 .492 17,54 1,686 81),700 6.68

Fliftialief 147601 11AM a 11" M

P-la-do 1.18"a VIM M ZrAn It"

C-1-0.1T-W 1,113151,11114 urm In 141"M am

Asiiiie rainipeft! 118,917 7,249

Undiir 11100,0013- 932 .066 35,6M 31 MASS 3.83

32.142 26,97 3110.9 380.9 1 .am 391

139.1 2.3 141A I,?" Ilill,

$I0bDODunft,3I MI 642.Q5 59,466 . 19 59.~ 9.26 200.0 200.0 3,363 700 24 37

III MUnderSIOW '19,lm 32,133

SIO .Unds'SIMMI 22.592 9,521

SIOOW"- 4,176 3.279

Table 9-Continued (1978 )

Add~ T.andPn~- AVWW TMiiiiid N.Cbww

(in ,Il,ons of dolla,s) P-illy w Iiiiiiani PW.W '

I- T. 9.0m

Agiinhi A~ C~

ft- T.

ll~ P- T.

AWft C~ AWA &~

81 .1"A 111440.11 25.7 IMi 3AN 322 1U 13 28

MIA 20.3 .6 308.2 4,830 893 570 is 35

01 .6 29.7 1.5 122.7 1,951 636 240 13 19

394.5 17.6 .7 412.8 6,416 1.003 432 14 27

".9 ~9 SIM

30"

9,521 ~.14 457.8 457.8 48.D78 1 2

3.279 78.52 2.074.7 632,7~ 6

3AU z"M M 23 23

138.4 1384 19,087 269 to 38

47A 47.1 1 .331 605

2.074.7

8.0 saw- ceq~ 425= 11AU 42 If" LTI 2" 2U 2A17

F-11200i. k"I lAn

Estft Tftl 222.M2 29.11101! 3,614

1A" 23,04 2.9 U 1AM A-11001iii,

3SAIG IL03 U&7 5.6 =I 20MI 140 12 It

G- E- ti~M.000 1133,438 14,266 3,124 17,390 8.99

G- E-. MWODO 28104 15'em 3w

126.4 4 .4

16.D26 56 .45 500.3 to W1 .3 31.994 2 .593 11 11 Grain EstataMDO, M

am 34MI SAN 1,743 It= ry.1 JA 711.7 TAM 912 23 31

I- Erale W W T,Aiil 91,28D,306 5,15 .662 1.375,077 169.390 2,090.129 2 .29

ae.b.

Irl 1111110 141M III&M IOAD

R-Filiele-d 25.M .M 101AII I

III-IM ciiift, C~

,I Inc udas Form 1040 with Standard deductions and Forms 1040A.

No=mness returns.

: Adjusted gross income E l .

'Susin returm.

alance shael assists.

Totals my not add due to rounding,

142,M M

4SX793 483,7113

231.1 16.4 W7.4 I.M 401

1M.9 8,860 1 .422

Is

31 35

20

13 20

23 0

12 9

TOM

F- 1040-SWnWd

NB~1110,00041wnbed

NB S50 .0DO and -

a undii, 510.000

B $10 .000 undiit 11430 .000

B $30,000 ano -

OM-M~ Towe

A-le M -.W

L~$100'000

$100,000 un0ii, 61 I'M

$1 .Ulivi,, V 0 w

$10MUnW$IOD W

slooma0-0 OW- caqL

Eddii, lr~

C-Estae, U- 000.000

Incoine. Eft. an,J OM Tiilat

124A 124A 252 0.0.. C~ C....11"

6The recOmmendad additional tax and penalties for 1979 reflect the amounts recommended by ivairniners at the conclusion of the examination . The recon manded amounts for 1978 are the amounts reo:immended after taxpayers'appeals of the scu,miners'nloommendations in district conferences and pri- ,

or to an appeal with the AP Ilate Division . For 1979 the Service established a ono-level of aPPPM] System and eliminated district conlerempat .

7Service center no change"peercent by class is not available . No changes resulted in 31 percent of sarrOce center OmMinationS.
Tin mum- -m-agg minging al",

'TH -P -Te-nova

'an . N

W~24

gn

it Hid Z 9 Hat.

. . . . . . . . . . ~ ;3 - . .J . . . . .

4

g§ 1 .19 . . . . 9 . . . .

11!40!~ffil

.

wo

8R

-

.np Gz~

-

Rw

-

.~G

Z-8mm-was a cv-m W~g

.8 M-61 -ai l

Jti

.9.fstrsx - --

T-S~ wk=84.0

ag~sss

Ai

WH -

P MM I

;j :3 v

. .Mtnul gag -Tim"Na01 AE-S-; sit i

. . . . . . . . . . 1 .0 'Al . . . .

0
Table 12 .-Retums examined

haxiiiiii, "miarard am 1M

Numbe, of returns exarenec! by Exangrasen DWim . . . .. .. . .. . . .. . . .. . .. . . .. . .. . .. . . . . .. . . .. . .. . .. . . .. . .. . . Z328.812

Flaturre -h ad-prodried by Examinexxt DM.. . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . 1 .780,029

E':~~Pqxxaxf by E~DMskDn .. . . .. . .. . . .. .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . . W,7W

.. . . .. . .. . .. . . .. . .. . . .. . .. . .. . . 2.328,812 Adreed, Paid . Datauffed . . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . 2.185,343

Trarridanad Is PAPWW Appaila price .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . 47.767

"WPestered Statuairy Nebm. .. . .. . .. . .. . . .. . .. .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

..

.

.

.

.

.

.

.

.

.

.

.

..

.

.

.

.

.

.

.

.

.

.

.

.

.

. .

.

.

.

.

.

.

.

. .. .

.

.

.

.

.

. . ..

.

.

.

.

.

.

.

. . .. . ..

.

.

.

.

. 80

.. . .. . . .. . .. . .. 14.650

.818

U-1E

2.273 6M

1 .727 .04 2

546.561

2,273,603

2.093,91 2

S3,796

16.9&1

Sam

67

Table 14.--Vvll penalties assessed and abated

(in thousands of dollars)

ON paead i

Hurebair Aniount Maker Arriouid NWOW Arviara d

DaMaxiiamy .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. .. . . .. . . .. . .. . . .. . .. . . .. 946,219 165,05 113,400 3D.010 W2,810 135,914

Estanuad Tax . .. . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . . .. .. . . .. . .. . .. . . . .. . .. . . .. 3.W979 233,1214 160.123 20,198 3,WSM 212.936

Faruni to PW. . .. . . .. . . .. . .. . . .. . .. . . 4.706.781 11420 ~510 11212 4.218271 103=

BadC 110,356 04 Z58D 1. 107.796 791

Fraud! . . .. . . .. . .. . . .. . . . .. . .. . . .. . .. . . .. . . .. . .. . .. .. . . .. . . .. . . .. . .. . . .. . .. GAIS 25.006 317 2.525 61501 M .M2

N9g1sQW .. . . .. . . .. . .. . . .. . . .. . .. . . .. . . .. .. . .. . . .. . . .. . . .. . .. . . .. W.N1 10.4,0 1,402 1 .117 W.8"It 0.293

oexx I . .: I ~ I ~ I ] : ~ ~ ~ : ~ j- - ~: * . . . : I . .. . . .

. 7,509 557 3115 26 7,123 530

Trilair . .. . . . . .. . .. AMM 131WHIM 761101117 65,23111 kMA" MASS

C"'I'Matila n

D.IW.,,.r.y. . .. . . .. . .. . . .. . . .. . .. . . . . .. . . .. . .. . . .. .. . . .. . . .. . .. . . .. . . .. . .. '09.n4 W.5w 19.9m 65'" 119285 30,2"

lEstinaftel Tax . .. . .. . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . . .. .. . .. . . .. . . .. . . .. . .. . . .. 168,965 67 .687 15.43D 39,570 1M.&M

111),. 11.1 42 . 20.071 121.409 2D."'.949

=.,T., ~: : : :: : 56 21

1

20

Sad Ch.~k . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. '.987 w 1132 13 I.Sw 50

Fraud . . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. 467 10,307 43 976 Q4 9.33 1

. .. . .. . . .. . . .. . * . . . .. 3.123 3 .759 85 114 3.039 3 .646

Mmsiftnadua . . . . .. . .. . .. . . .. . .. . . 1 138 428 2 62 130 365

T-t-M

. .. . .. . . .. . .. . . .. . .. -11 . . . . .. . .. . . .. . .. 454,1304 2111.1142 79" 125.124 3MM 93.717

Eing"..

.. .. . . .. . .. . . .. . . .. . . .. . .. 2..,471 ., . W.606 ..930 2.096..

. .. . .. . . . . .. . . .. . . 675 152 621 57 54

F=1Tax1 . . . .. . . .

. . 2:4 .. (17:7164 371157 14:73 Z12D,109 52 .43295

1

348 N 209:991 67 6612 2,410,317 M 12D

Bed Cliack .. . . .. . .. . . .. . . ..

. =505

. . . ..

. .

.. . . .

. 120.771 1,665 zoof 58 118,737 ~ :607

Fraud

1

. 847 2,1105 102 157 1,745 2 .741

or,ar . . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. .

. 215 32 11 3 28- -

Tehil. . . .. . . .. . . .. . .. . . .. . . .. . .. . . .. . . . . .. . .. . . .. . .. . .. . . .. . . . 7AST, ON 449A" 730= 121.1" 6,7414114 SUAn ardefra.

. .. . . .. . . .. .. . . . . . . .. . .. . . .. ., I I s 14 .771 111.715 2.571 784~401 12 .204

.. . .. . . . .. . .. . 16273 36M7 12 .043 28,456 4230 8,531

Faflunitofty. . .. . . .. . . .. . ..

. 7~37 698 69 7:111 1 "0 s 3 :1 371 aus 3 11 9 :9

Fridand To f5spereei 149 4:037 869 33:073 250

Bad Cha& .. . . .. . .. . . .. . . .. 3.'M 24 .125 1 3,343 23

Fraud i ' * ' ** ' 225 1~ 005 25 98 200 907

of. . .. . 76 . 78

: : '~W' 63AU 73 34j" "M" alm

Dearieuri-Y.- .. . .. . . .. . .. . . .. 7W.W0 38,901 5.373 21,"g 793,957 17=

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

. . . . 12 9 4 3 8 6

Failure P7: : . .. . . . . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . . nw.wl looof 6,231 778,965 7,376

U7 43 68 25 279 18

5 36

2

Fraud . . .. . .. . . . . . .. . . .. .. . .. .

. I A 34 39 19 2 2 37 17

odner

Indida .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . I I . . . . .... .. .. . .. .... . .. IAWM 54M ISA62 2111.712 IolI73.964 114.41114

TTP= =F TV iderthodis, Faurs 0 Nerearis .. . . .. . .

.

.

.

. . 22,768 5.4S3 19.768 2.169 3,DDO 3,266

011her

,

Doiliql-Y .. . .. . . .. . . .. . .. . . .. . .. . . .. .. . . .. . .. . . .. . .. . .. . . .. . . 38,710 17,491 8.872 4,219 29.11M 13,272

. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. 52, . Z153 16.954 1,078 M,942 1 .075

=-=': ~ :

: - - ' - ' - * ' - * ' "* " "

541 a 54 6 487 3

FraW

Negb~ 'ut 9

. ..

Weed- 6

2 2 42 7

2 1 5 2

TriadTritifl An Card a . . .. . .. . . .. . . .. . .. . . .. . .. IZ197 ISAN 25AD 11 .11413 OU14 14XI

. . . .. . . .. . .. . . . - I I .. . .. . . .. . .. K75,Dm 1AKU? 1,719.519 213.731 19~7 1,1011AN

:In.ludw OiAck Awasserrents and Cases Transferred to Juaffice Department ,

.Increase in the number trwfeued to Regiorail Appeals Offices vas dw. in part, to the establishment of a one level of appeals =m on October 1, 1979 ,

Table 13 .-Results of collection activity

0111

Taxiiiii,or D.Vardiuard

=r" ar eary .. . . .. . .. . . .. . .. . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . .. . . .. . W1669

Z054 ON

2.012:513

Closing 1~:

(a) Nuirear .1 aecaunia . . . .. . .. . .. . .. . .. . . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . .. . . .. . 8MIS4

(b) Balunie ol iissassid! W. Penalty and hurnist . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . .. . .. . . Z356,216.794

Dadeleaet Meam

op.ft I . .. . . .. . .. . . .. . .. . I . . .. . . .. . .. . . .. . . . .. . .. . . .. . .. . . .. . .. . . . 350.997

Is.. . .. . . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . .. . .. . . 1.459.807

Dirpe.ftionf .. . ~ . . .. . .. . . .. . .. . .. . . .. . .. . .. . .. . . . . .. . . .. . .. I . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . . .. . .. . .. . 1,406.605

Clorarg In-dery, . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . . .. . . .. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . . .. . .. . . 412,199

ii-agaiderr Cioaad . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . 133,107

onaria M crierfaramin Prarip"aii . . .. . .. . .. . .. . .. . . . .. .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . 2AX

Nefore T. Lien I'Marl . . .. . .. . .. . . .. . . .. . .. . .. . . . .. . .. . .. . . .. . . .. . .. . . . 348,480

Nadoeir 0 LavIr Servird Upen Third Parear . .. . . . .. .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . .. . .. . .. . . W.912

See.. 0 Prpty ~. . .. . .. . . .. .. . . .. . .. . . .. . .. . .. . . .. . .. . . .. . . .. .. . . .. . .. . . .. . . .. . .. . .. . . .. . .. . . 5,104

85511~

2 335~168

2:149,188

1,072,334

2.OIZ774 .109

412,199

1 .312,016

1,278,41 1

"5ab;

Miss

3j"41

37l,W7

465,059

5.723

Not": Amounts may not add due to rounding . Nth the exception of ES, penalties can apply to any tax year. Abatements

can apply to any tax year.

I tludes Taxpayer Identification Number, Failure to Report Tips . Miscellenectis.

2 ncludes Forms 1120, 990C, 990T.

: :nd,,Ol Form, 940, 941, 942, 943. CT-1 .

nclude: Negligence and Miscellaneous .

:~nclud- Forms 104 1 A, 5221, 99OPF . 4120,990, 4638, 2290. 11 . 11 B. 11 C, 720 and 730.

nducas Negligence and Miscellaneous .

: Low then $500,

Period covered is January 1 . 1979 through September 30, 1979 . Thma, penalties are from processing of Individual ratums

only and do not reflect other penalties assesselple under the Tax Reform Act of 1976, Code Sections 6694 and 6695 .

1 Includes Forms 1041 . 1065, and Individual Retirement A.--t File .
I

1*1

Table I S.-Appeals Division receipts and dispositions of cases not before

the Tax Court (nondocketed)

AP P V .1 -k

Aineant tsftd In i-s spar

"pad de ismissno d dousel )

N.ses, badwicy

INC-, sit!

(1) (2)

0-

(3)

Perdng OctDbw I . .. . . .. . .. . . .. . .. . .. . . .. . .. . .. . . . .. . .. . .. . . .. . . . .. . . .. . .. . . . . . . .. . . .. .. . .. -20,6913 4,929,645 117 .085

A .C*.d 35,405 3,382,21G 115,807

DAP.-d iii. . . .. . .. . . Mope 2..9,095 114 .01 1

By wrt-el .. . .. . .. . .. . . .. 27,W 1 .900,124 60 .6D6

Z438 70 .201 3.373

BY Nxeer 1 .125 51,054 w

P.b. Ald..'slened . coumix . . .. . . .. . .. . .. . .. . .. . . .. . . .. . . .. . .. . . .. . .. . .. . .. 2.06 427.686

P,xiang S..,~ 3D . .. . .. . .. . . . . .. . .. . .. . . .. . .. . . . . . .. . .. . . .. . . .. . . 25,11,11 5,862.76) 168,88 1

& Rsswts Obble" in &WsAia"

APPUN chiftnWhollan

(in 0-isenti 0 Oes- )

Nisel. Ds1lCwW

dc- d

P--"Y

(1) M

Dispomd of. latial . . .. . .. . . .. . . . .. . .. . . .. . .. . .. . . .. . . .. .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . .. . . .. . .. 33,905 1,161,977

By ow. . . .. . .. . . . . . . .. . . . . . .. . .. . . .. . . . 27.W 649,943

Unegreed: (O-nenls, claims, -001-

2 .438 42,694

. .. . .. . ... . .. . . .. . . .. . .. . .. . . . . BY ae~ . . .. . 1 .128 41,664

PsIfte, C.Urw. . . .. . . .. . .. . . . .. . .. . .. . . .. .. . . .. . . .. . .. . . I . .. . .. . . .. . .. Z696 427.696

0-

M

l4oBBO

141,79 4

1,792

294

I A case represents taxpayers grouped together by tax periods Vvith common or related issues that my be heard and

disposed of together .

I The number of mass pending on Oct . 1 . 1978, 20,718 in the 1978 report, has been restated to include the imemory of

district conlerence cases and to reflect the redefinition of a caset as in footnote 1 .

Table I S.-Appeals Division receipt and disposition of Income, estate, and

gift tax cases petitioned to the Tax Court (docketed)

A. P W d som

P,rov O~ I . .. . . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . . .. . . .. .. . .. . .. .

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

. .. . .. .. . . . . . . . . . .. BY darmael . . .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . . . . .. . . .. .. .. . .

BY to cr-' . . .. . . .. . .. . .. . . .. . .. . . I . . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . . I I . .. . .. . .

Pending Sgoismew 30 . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . . .. .. . . .. .

8. Result, Obtained M dlRPO9Wcas

Dasseied 0. 10160 . . .. . . .. . .. . . .. . .. . .. . . .. . .. . .. . . . . .. . .. . .. . . .. . .. . . .. . .. . .. .. . .. . .. . .. . .. .. . .

By -fix4sed -9- . . . .. . .. . . .. . .. .

Fly dft" or ~ . . .. . . . . .. . .. . .

By traIst. w C.-i . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . .. . .. . . .. . .. . . .. .. . . .. . .. . . .. . .. . .. . .. .

AinwAd ft" In I

no.0 . sse-sixf 0 dwis.)

to. W- btfidsacy 0- CsAss . And

(1) P1% (3)

11,988 2,059,352 92,758

lo.~ 943078 6AM

12,630 1 .6561655 83 .897

S'7w 328 .515 SI G

751 4 .070 2

6,093 1 .323,170 83,897

9,798 1 .346,574 15,68 a

0- IN coi~ sed

(1) (2) (3)

Mass) 861158 51.704

5,786 85,331 4240

751 827 5

6,003 - 47,459

- A ca . "'presents taxpayers grouped together by tax periods Wth common or related issixes;that my be heard and disposed of together.

Table 17 .-EP/EO tax rulings and technical advice Issued

Wod T=

FMW

TdIsl .. . .. . . .. . .. . .. . .. . . .. . .. . . .. . . .. .. . .. . . .. . .. . .. . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . . .. . 10AII 9.m 710

Act-W Matter, .. .. . . .. . .. . . .. . . .. . .. . .. . .. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . . 2,203 2,184 19

Exe.P1 0qadiese. . .. . .. . .. . . .. . .. . .. . .. . .. . . .. . . .. .. . . .. . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . . 3.910 3,624 286

Enqx~ PL. . . .. . . . . .. . . .. . . .. . .. . .. . .. . .. . . .. . . .. . . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . . . .. . 4,298 3,893 405

Table I 8-Determination letters Issued on ERISA employee benefit plan s

TOW

11- Nwft

sbck Bw DONs" D~ TRAMP PPchsP@ derissoullen likesfil Irsed

kd" a w

0~ . . .. . .. . .. . . .. . .. . . .. . . .. . 623

Perb-pong E-Osv.. . . . .. . . 5D7,450

Not

A~

Quaffed

- * - - -

. .. . . .. . . .. . . 3

oudw . . .. . .. . .. . . .. . . .. . . .. .. . . 503

Nol Oualthad '' . .. . . . .. . .. .

Ts

O~lftd

~

. .. . . .. . .. . . .. . .. . . .. . .. . . 41

w O.Iffiel . .. . .. . . .. . .. . . .. . .. . .

18.00D 27,516 309 73 45.521 16,081 62 .602

160.7112 402,968 236 .491 93 1 .307 .784 1 .196.079 2.503AW

8 11 22 7 29

14,008 21056 134 163 37,95,1 252M 66 .156

7 to 23 Is 39

2,764 5,79a 11,603

5 14 1 9

Table 19-Number of ED returns examined by type of exempt organization

3,11013 12,409

9 28

" 1979

601(.X3) . .. . .. . .. . . .. . . .. . . P~ F;-ftbon .. . . .. . .. . .. . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . .. . . ..

=

. . .. . 3.595

ChamwIle Trust .. . .. . . . .. . . .. .. - I .. . .. . . .. . . .. . .. . . .. . .. . . .. . . . . .. . . .. . .. . .. . . .. . . .. . .. . 246

5500; ((CCr4)) . .. . .. . .. ... . .. . . . cl~lclaep

.. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . . .. . . I I . .. . .. . . .. . . I . . .. . .. . . .. . . .. . .. . .. . . .. . . .. . .. 1 11,3311

SO (CX5

Sdw ~ . . .... . .. . . . .. . .. . . .. . .. . . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . 2,333

So (qg

rn?

501 so ) I,6D9 (c)(7 .. . . .. . .. . . .. . socel Ard!

" 00- 3

rlecraioxal Ckft . . .. . .. . . .. . . . .. . .. . .. . .. . . . .. . . .. . ..

.

.

.

..

..

.

.

.

.

.

.

.

.

.

.

.

. 1,933

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

.033

521 . .. . . .. . .. . .. . .. . . .. F-', 6~i;W .. . .. . .. . .. . 505

Tots! ~. . . .. . .. . .. . . .. . . .. . .. . . .. .. . . .. . .. . . . .. . .. .. . .. . . .. . . .. . . .. . .. . . .. . .. . . .. . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . ZLM

i
70 7 1

Table 20-Number of active entities an exempt organizations master file

(Individual and group )

me 0.0. (sil 1970 Ion

(1)C~rw-`I ftaNM u~ ft, of Conlin- 5,2

M MI 2725 5.31214D

M . . .. . .. . . .. . .. . .. 947 304 315

. . .. . .. . . - .. . .. . . .. . . .. . . 125,317 127'~

Latxv, Aoniftuir. . . .. . .. . . .. . . .. . . .. . .. . . .. . . 87,W 85479

(6) But-Lo... . .. . .. . . .. . .. . . . 45 46~940

(7) So" and ~Oulxi (a) .. . . : : :. : : 49225 6D 577

Friaimil la.~,vy kci,ii,ei I'D:963 '37,417

(9) vftnian, EmA~~.. Btinwdley sci" s s . .... . . .. . 6.827 7,122

10) D~ Z==~ary S.CM.. . . .. . .. . . .. . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . 12.199 16.525

, 1)T~ ..

. . . .. .

.

. . .. . .. . . . .. . .. . I. .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . I 1 10

12) B-olent L" . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . . ~ I I. . .. . . .. . . .. . 4 M 4.891

(113)ce-wyc~ - .. .. . .. . .. 5.529 5.762

4) C~dflt Lll~-i I . . .. . .

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

. 5.118 5,141,

(1 5)

I I ' 28 2

Muhw nou- . . . .. . .. . 1,408 1 ~312

6

i~ullz . . .. . .. . . . . .. . .. . . .. . .. . . for 794

(18 E=FL" .. . .. . .. . . .. . .. . . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .. . .. . . .. . . . 4 3

. . . .. . .. . . .. . .. . .. . . .. . . . .. . .. . . .. . . .. . .. . .. . .. . . .. . 21.233 22.21D

L"al Sor-i I. .. . . .. . . .. . . . . .. . .. . .. . .. . . .. . 4

1

N

se (d) Ratio- . . .. . . .. . .. . .. . : : : : ~ q 3. 67 13

F-*Coip~ . .. . . .. . . .. . .. . .. . . .. . .. . ~: : I : I . . . .. . . . . .. . . .. I . . . .. . . .. . 606 3.3 2

TOM . .. . .. . .. - siome M.536

Table 21 .-Disposal of exempt organization application s

[Re s~ 601C

APPIlC1d,;,Iii W

ApPrOM DoelId a'. ~ TOW

(1) Carporoacra O~gwitidi Undat Act of Corwast .. . . .. .. . . .. . .. . . .. 1 1 2

(2 =1. . . . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . Bf 14 96

.

4

M Cneftah,,' : :. : .. 1~ :11 . .. . .. . . .. . 24,892 .80 5 7,338 XG3

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

2$94 im 964 U812

521 Id

(6) .. . . .. . .. . . .. . .. . 147 377 2.U

(7)

Bdo Ind rl~

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

~8 37 to a 7

. '756 7

AD2 127 68 229725o

ft~ FrolamIJ Bivooliclary~~.. . .. . .. . .

Vdunury Er.A. B"loary Ms 5 49 589

0) D-olic Fnilani& SDCWtes . . .. . .. . . .. .. . . .. 41 9 62 112

I" . .. . . .. . .. . . . .. . . .. . .. . . .. . .. . . .. to to 121i ; 254

(g) c"-v ""1- 255

4 39 298

. .. . .. . . .. . . .. . . 14 1 4'

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

7) &Lqiparnental U-TVbrnw,,I BerwM Tuiti .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . 36 1 1

(9= V~

8) Emoq,- FuOtid P- T

Pro . .. . . .. .

.

.. . ..

.

.

.

.

.. .. . .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

I

.. .

. a'

Loolw org l ; a

'0

50l(d)Ap se .dk-%l9-Or9 . .. . . . .. . .. . .

5T=S*- 01g

. of OMM M Ed-b" 019 -

Noeonai on~ Range and Diourrint- Lt4ii-

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

.

.

.

.

.

.

.

.

.

.

.

.

.

. 27 127

.. . .. . .. . . .. . .. . . .. . .. . . .. . .. 2,695 650 3.624

Gra"'! T~ .. . .. . .. . . .. . .. . .. . .. . .. . . .. . .. . . .. . .. .. . . .. . .. . . .. . .. . . I 1 "2 2=6 Iuor? Auto

I Applications vilthdrawn try taxpayer, incomplete applications, etc .

Table 22-Internal revenue collections, costs, employees ,

and U .S. population, 1950 through 1979 1

T.w lr~ 11abanal

PAN cwft Of@ .

(1) (2) (3) (4) (a) (4) M (5)

Cooler, POPL"~

CWMCG- "of S1111-

.W.)

. - PoillbahiMPLIMill

1950 .. . .. . . .. . .. . .. .

. M408, 38,957,131 .768 0.59 152,271 255.84 56,551 4303 51.248 1951 . . .. . . .. . . .. .. - 215:869,25WM 50."5.6W,315 0,49 IM'878 325.71 55'we 4,2011 51 .597

1952 . . .. . . .. . .. . .. . .. 271.672.192 65.009,685,66D 0.42 157~563 412.62 58,309 3,11M 52.356 1 M . . . .. . . .. . .. . .. . . 2611,590,806 69,6815.535,3119 0.38 160 .184 435.00 53,463 3,836 49,629 195, . . .. . . .. . .. . .. . .

. 268.969,107 69.919.990.791 O.w 163.026 428.89 51,411 Z707 48,704

1955 . . . .. . . .. . 27a,W278 66,28B.692,ODO 042 165 .931 399.50 50.800 2,675 Q.215

1956 . . .. . . .. . .. . .. . .. 299.1194,710 75.112,Ug,ODD 0.41) 168,90:1 4ul.71 50,632 2,583 418,099

1957 . .. . . .. . . .. . .. . .. 305,W7,814 80,171,917.00C) 0.38 171,98", 468.16 51,304 Z&V 48,532

1958 . . .. . . .. . .. . .. . . . 117~42&789 79.978,476,48,11 042 174,882 457.33 6D,816 z9a ; 47.M7

1959 . . .. . .. . . .. . .. . .. 355.469,228 79,7117,972.908 o . 177.SW UBJ3 51.226 2 .969 48.257

1960 . . .. . . .. . .. . .. . .

. 363.735,M9 91 .774,802,823 0,40 180,671 507.96 51 .0;7 2.910 46.137 ~961

M2 450,080,Q) 99

413,295.238 N.401,086.398 0.. 153.691 513,91 532M 3 .042 60,164

.WM9,245 0`45 186,536 5M .09 56481 301 63,080 'M . . .. . .. . . .. . .. . .. 500.13IN1,314 105,925,395,281 0.17 189,242 me 7. 59.711 3.657 56.D5,i 1964 .. . .. . .. . . .

. 549.692,131 112.260257,115 049 191,80 665.03 61,059 3,809 571M

~965 ~ . .. . : : : :. 597 M7:471 ~14.~,633,721 0.52 194.300 Miles 62.098 3,88, 56.217 '966 .. . . . . . .. . . B24 :861 94 28.879,961,M2 0 .48 1915,560 65546 63.506 3.982 59,526

1967 667 080 295 1,48.374,814,552 0,45 198.712 746,68 65.946 3.M a2.052

'968 699:1901MI 153.363.837,665 0146 200,706 765.48 67,674 3,967 53607 969 . .. . .. . .. . .. . . .. 758.785.475 187 .919,559.665 0,40 202.677 927 .19 Oll 3.11162 62:202

~9170

7 981

sell 195.7M.098,497 0,45 2N.878 955 .31 68,683

I I '

.065297 191,647,198,138 0 .51 207.053 925 .63 68

; I I

aft .972

972 . .. . . .. . .. . .. . 1.127" 209 .11WJ36A78 05, 208.840 I .OD4 .83

~11 : : .. . . . .. . . .. ~:3162, -:o'S 137 :787, - .058 0 49 2

,

. 410 130 .11 74 170

4 . . .. . . .. . .. . . . 1Z&94 661 268 952,253,663 &49 2;, :901 1:269 .24 78,921

0113 64,59D

4.358 O.M.

'4 64,415 :134

505 69,665

4,310 74.61 1

~975 . .. . .. . . .. . .. . . .. *1,584,711,486 293,1122.726.772 0.54 213.559 1,37584 82.339 4,531 T7,806

:1.667,311,689 302 .519,791 .922 0.56 215.142

M .71."

4

I 7M 598 738 358 139,416 730 0150 217,129 1'

1978 .. . . .. . .. I -

41~;. 78,749 -1:962 :1211:287 399 :776.M.*36i 0 .49 219.011 1

. '"

.01 85,329 4,919 60

.410 1979 . .. . .. . . .. . .. . .. . -2.116 .166 .276 460,412,195,013 046 220,9911 2,053 .32 80 .630 6.003 61 . 627

'Thl figure represents actual IRS operating MM from IFY 1975, exclusive of rarnpursemants received from other agencies for services Performed 1 1 . While the operating costs figures for fiscal years prior to 1975 may in oxime casee Include

reimbursements, those amounts are sufficiently small so as not to alter the cost figures in colunin 3 ,

Economic Stal,lization Program average positions included in 1972, 1973, and 1974.

Federal Energy Program average positions included in 1974 .

1972 adjusted by 3,990 average positions to reflect the AT&F thmster-July 1973. AT&F inchided in years 1948--71 .

Eleven average positions transferred to office of the Secretary In 1965. T"my average positions transferred to office of

th

a

Secretary in 1963.

Table 23-Costs Incurred by Internal Revenue Service byActivity

(in thousands of dollars )

Appropilixtion by Activity

pon"'hem CO .0-

ft . aad B.Itb

IA45~ns ijot"" 421,121 4711.3114

1 .535,1528 1 .6W,231 426 .601 477,935

Ion 1079 im 1979 1978 Ion

Taw wage"i aef, .. . . .. . .. . . .. 1,074AN XIXSXN

Obivinx-490"I'lewwown"M . .. . . .. . .. . .. . . .. 1 .962.129 2,116,1611

Milial,iii andEVTotal . . .. . .. . .. . .. . . .. . .. . .. . .. . .. . . .. . .. . . .. . . .. . .. . .. . . .. 12k"$ ISCISS

E.~Dlra-, - .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . 13.220 14.424

InUinial Audi an, S.-Ity .. . . .. . .. . .. . . .. . . . . .. . . .. . .. . .. . . .. 29,014 31 .11M)

. ..

. .

. . .. . .. . "'65' ..

i ~ i ~I I . 45 01112 49,721

T-N" RW.,2.and . . .. .

. .. . . 11 lo"W3 22j5O4

I .=Sonil oad MIlia'aI F

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

Data Procesen Opraa~ . . .. . . .. . .. . .. . . .. . .. . . .. 493.560 521,037

I"= ]~. . . . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . . .. . 13,. 11,3116

T.~Y- . . .. . .. . . .. . .. . . .. . .. . .. . I&I'Doe 197,612

EMM.111- and Appal.

104.1" 11kno 111 22,4211

10,164 10.479 3,056 3.945

24 .405 251142 4= 5,327

15.216 15,89, 2,.1 4,4n

0.504 .576 4,576 5,145

I7zM 18,970 ZOBB 3,534

ASSMS 48? .M 214AU *"An

355.838 3112,605 124,722 :11,=

10.625 11 .239 3 ;99 Z157

,5,772 " .'so 815~ 3. 13.474

Taw . . .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . rootlet Troffin 407AS4 Ils'no 1211,70111

Exiontrii . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . . .. . . .. . .. .. . . 1

675,253 719.588 560,877 We 932 11 4

Appeii, . . . .. . .. . . .. .. . . .. . . .. . . .. . .. . .. . .. . .. . . . .. . .. . .. . .. .

. 50.939 50,525 46.5T7 ":453

4.376 20,

X2 6.072

Tell . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . .. .

. "1 731 AMM2 3KM 381 .fO$ 77.037 sun

I' Fraud h"tDo-`

C~ 2SA,302 230613

. . .. . .. . . .. .. . . .. .. . . 121 :la2 130,185 9815 :31 lol 22.351 24,006

212 7M 23D

. "

45.%3 49 M

&W-y- Pi" and 6wrrw 6"tion 62

.

247 "54 53:104 54 .1807

9

1143 10.037

lo.t.t..'" - I. - . Tw . .. . . .. . .. . .. . .. . . . .. . .. . .. . . . .

I&M 7,105 14=7 SAN 2AN IASO

I
72

Table 24-Costs Incurred by IRS by office

(In thousands of dollars)

hilernal-MOM dMilifil . "Ide

A. M~ (take led reglealil Iiii 0-d-00 dlitild deeofWI"he." serece . .. . .. . .. . . .. . . .. . .. . .. . . .. . . .. . .. . .. . . 2,123.21,11 1,043xn

w1lb,el office . . .. . .. . . .. . .. . .. . . . . . . - . . - - . . . .. 419,479 In.=

I"W" -am - - - . .. - I .. . . .. . . . . . . .. . . . . 290,6110 266,629

kid-Ase"tic . .. . . . . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . . .. . .. . . .. . .. . . 196,215 178.675

SoL~ .. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . ~ : . :: . . . .. . .. . . .. . .. . 221,572 194,897

rerwal . . . . .. . .. . . 173,9,12 154.610 . .. . .. . . .. . . . . .. . .. . . .. . .. . . .. . .. . .. . . . . : . .. . .. . .. . . . * . . .. . .. . .. . . 201 .416 IIII .W

sau,"lelf . .. . . . . .. . . . .. . .. . . . . .. . .. - MISS 174=

fto- ': *: :: : ~ . I . 1 307.209 272.522

pwgimw 6a . . . .. .. .. .. . .. . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . 32,495 30,162

='ealce- . . . . . . .. .. . . . . . .

Irdwrlft~ opard" 16,611 13,169

Nee"a c"`7

I.................... . I............ 14.5n 71"

FS Dell clv~e..............

. 26,170 2116M

IL

North-ASUft .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . . . . .. . .. . . .. . . .. .

. I7.11 15,845I'AWAI'llft . . . .. . .. . .. . . .. . .. . .. . . .. . . .. . - - 13 10:73

5 . . .. . . . .. . . .. . .. ..

12,43M61 048

C~w . . . .. . . . . . . . .. I . . . . . . . .. . . . 11.626 10A9

Lid'll'st . . . I . . . . . .. . . . . . . . . .. . . . .. . .. 12,5110 10,413

so"I'le, I . .. . .. . . . .. . . . .. . .. . . . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . 12,142 10.719

WW. . . . .. . .. . . . .. . . . . . . .. . . . . . . .. . . . . . .. . . .. . 19,2M 153.0

c. Dbbmdbw . .. . . .. .. . . .. . .. . .. . . .. . .. . . 7~14

Aug. 29 . . .. . . .. . .. . .. . .. . .. . . .. . . .. 48'510 41105

B000,, . . .. . .. . .. . .. . . .. .. . .. . .. . . .. . .. . . 32 3=02 8w

Ekookyln .. . .. . .. . .. . . .. . .. . . .. . .. . . . . . . .. . 32787 3

au"A'D 119:na 17 Is":15

au,irtim......................... 2,5138 Z21

3

16 .157 15,426

N"..................

...... 64 .014 61,078

Po~ . . - - . . . . . . .. . .. . .. .. . .. . . .. . .. . . .. . .. . . .. 3,220 3 .681

1".~ce . .. .. . . .. .. . . .. . . . .. . . .. . .. . 5,610 5,159

lil~ Tninnf; 22838-

113, U276

svo, C~ 43,820 " 971

B~Mwlw- . . . .. . .. . .. . . .. . . .. . .. . .. . . .. 26.870 24,955

Nw~ . .. . . .. . .. . .. . .. . .. .. . . . 41 9V Willa

Mileat" . .. . . .. . .. . . .. . .. . . .. . .. . . . . .. . . . . .. . . . . . .. . M~711141 30,Mg

Mth,eu,gh .. . .. . . .. . .. . . .. . .. . .. . . . . . . .. . .. . . . .. . . . . . .. . . . .. 7312 ~5,111

pi.r.. .. . .. . .. . . .. . .. . . .. . ~7:1616 s6a

""Mom 3,825 3,506

WIA"i .. . . .. . . .. . .. . .. . . . 626 494

14,ieel EQWW Differ lelid

(1) (2) (3) (4) (5

)

Twill

Rw-c-Giai iw,~V 16

8

phillaw" se'le Cw . . .. . .. . .. . .. . . .. . . .. . .. . .. . . . .. . .. . .. . .. . . . 41 .311 38,419 M.81112 22.80 .. . .. . .. . . .. . . .. .. .. .. ... . .. .. ... . .. .. . .. . .. . . .. . .. .. . .. ~1,111 10.511

cok~

1.21~1 7,

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

Pr'~........... 6. 9110.

jl~ 7,n3

6,

540

jell-Al" I.........

.

...

..

..... 44,479 39.749

Ne,h'"......................

. 15,315 13.538

Southeat Rep-GultraUld TMWWV........... 39,20

4

Ateft Slv*s Celle,.................. 984 34,73i

1 S~ C............. . weet 32,NI

cealrek

grlm ZILM .M

4,347 1 188 177 :116 5.199 U90 l7391

4,440 1~1 fl,~17

8,103 us 227

61295 1133 12,205 7.040 1,157 11,675 6.582 '

: 672 13,%3

9,543 2l6o 2216185

w 609 11.1

1 .8112 174 ni 2.018 25 1 .

54 1 99 6"M

107 352 4,oa. 9693

335 254

26 351; :,w

813 92 1,409

347

774 233 1,173 72 "a

611 260 w

9117 619 2289

326 39 496

267 7 224

861 202

1.

432

479 Ise 1, 019

66, 56 an

1496 140

57, 102 655

7al M 1.883

149 ~7 174

175 3 262 M 1 116 Ili 4

as 4,65 3262

651 221 .033

1,127 235 ~.161

684 2W '161

469 117 788

am 9, 1,179

113 43 '62

2 2 29

167 1

99 so

4.713

1,25, M I'lza

6M 50 511

453 49

U?

1 .01112 83 8412

SM 43 319

2,052 308 2,361

M 101 770

197 7

93 Mi 4

.878

137 1924.240

C~..............

........... . 19.767 17,7811 826 114 I'M

Cw,el.... - -.. V,273 24.479 1,053 116 1,615

Dl"al - - 1 211,140 34,8211

1 .07 95 1,659

Irdian.pate.............................

. 19,015 16,807 99D 101 1.116

L-levea........... 11 150 .91 721 72 62 . . . .. . .. . . * **~ ~- i*~~ e

PaWm. .. . .. . . I I . . .. . .. . .. . .. . 909 257 452 83 41~

nftng . . .. .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . . .. . 178 178

I. . .. .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . .. . . .. . 38.716 33 .479 160 179 4,M7

73

Table 24.-ConUnued

(in thousands of dollars)

kft.w - dft.edrk% . Mgm

TOW C-0- Tnelw &Aftleeat 01i

eellee

(1) m (3) (4)

M

i

111.d. . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . . 3.056 2 .702 233 7 1"

ct,i .w . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. 48,614 45.435

1, 205 1 1. 0 . Mdne. . .. . .. . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. I I'tzl 60

814

10,3M 625 07 496

F.W . . .. . . .. . .. . .. . . .. . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. 2.786

2 .408 212 9 Ise

M~. .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . .. . . .. maw 14, .3 an 117 610 0. . . .. . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. .. . .. . . .. . . .. . .. . . .. . . .. 7,559 6.678 4811 a 385

St. I- .. . ~ .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. 24.834 22 .705 1,027 125 976

St. iftul . .. . . .. . .. . .. . . .. . .. . . .. .. . . .. . .. . . .. . .. . . .. .. . . .. . . .. . . .. . .. . .. . . .. 19.669 18 .040 aw 160 788

Se-raw"!I . . . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .. . . .. . . .. . . .. . .. . . .. 12.529 11,150 6w 57 662 W~ P.P-oninedw T-*V . .. . .. . .. . . .. . . .. .. . .. . . .. . . .. . . .. . .. . .. . 189 tell - I

fu,- City ~ clnilm . . . .. . .. . . .. .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. . 41 ~1198 37207 lie 214 4AU

No . . .. . .. . . . ~ I .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. .. . . .. . . .. . . .. . .. . . .. 6,115 327 40 223

~n . . .. . .. . . .. . .. . . .. . . . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . . . .. . . .. . .. . .. . 38,W 31.OW ZI07 2U 2,114 Ch.. . .. . .. . . .. . . .. . .. . . .. . .. . .. . .. . .. . . .. . .. . .. . .. . . . .. . .. . .. . . .. . Z5B4 Z139 Z77 31 137

Dal we . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. .. . . . .. . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. 33AM 3D,115 1.013 225 1 Bad D. . .. . .. . . .. .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . .. . . .. . . .. . . .. . .. . . .. 14,M9 12,080 729 132 me

uft Flo* . . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . . .. 8,411 7,323 524 45 519

N- of eve . . . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. . 15.894 14 .0D5 019 132 748

omih-a ofty

"Adve Ware

14.120 12,507 710 225 677

276 217 69

9,791 537 90 47

1

................. 43,694 38.302 112 26B 5,212

VIMklh-,p .. . .. . . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . . .. . 5,322

4.474 423 w 395

sale . . .. . .. . . .. . .. . .. . .. . . .. . .. . . . _ . . .. . .. . .. .. . .. . . . .. . . .. . .. . .. . 4,693 4 .059

M 45M

Hell,e . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . .. . .. . . . .. . .. . . .. . .. . 3.975

3 .455 31119 so fall

H.. . . .. . .. . .. . . .. . .. . .. . . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . .. . . .. . 5,787

5.20 202 32 252

i-al kow. . . .. . . .. . . .. . .. . .. . .. . .. . .. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . .. . .. . . 72,191 66,110 Z416 412 32M

Ph.. . . . .. . .. . .. . . .. . .. . . .. . .. . . .. . .. . .. . . .. . .. . .. .. . . .. . . .. . .. . . .. . .. . . 11,073 9,972 498 108 497

po"e'll . , * - - 11915 10,486 631 63 ('35 R. re . . .. . . . .. . . . .. . .. . .. . . . 7.431 6.727 330 46 Mg so ~ City 5,439 4.939 M4 17 229 S. F~ . . .. . . .. . . . .. . . .. . .. . . .. . . .. . .. . .. . . .. . . .. . ... . .. . . 47,474 42,907 1.699 312 2,556 s.ft ~ . . .. . .. . .. . . .. . . .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . . .. . .. . . 18.359 10.460 w 9,

Welfer, Pap-CmAmAnd T-V .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . .. . .. . . .. . 318 285 94833

Slv-l CWft .. . .. . . .. . . .. . .. . .. . .. . . .. . . .. . .. .. . . .. . . .. . . .. . .. . .. . . Q,501 37,722 193 MI 5,

S-k . elner, .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. .. . . .. . . .. . . .. . .. 50.498 ,631 173 2" 5.4

19550

Note: Reirribursernants, are included in the above figures.

Table 25-Personnel summary

L.."M ill"

8-1. wftl~ . .. . . .. . . .. . .. . .. . .. . . .. . . . @$As - vim WiR .. . .. . . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . 71.444 71 V67 70,942 71 .771 :: : I. - ..~

14414 15= 1 G-W 13,62

7

I . . .. . . .. . .. . .. . 4XI'll .. . . .. . . .. . . .. . .. . .. . .. . . .. . .. . . .. . .. . .. . .. . . . .. . . .. . 11.11" 4AR2 4,133 .. . .. . . .. . . . silo MM3 IMTOS

owed. . .. . .. . . .. . .. . . I . . .. . .. . . .. . .. . - . .. . . .. . .. gym 27A

?

.700 KIM M4"

10.412 10.113 IQ" 10,027

othl,............. 54142M4 54736478 54-A78764

S..724881

I.;".9.w. . .. . .. . . .. . .. . . .. . .. . .. . .. . . .. . . .. . .. . . 441 4,M 3,rl 4AS

Tavey"s-spKIWIM- .- I . . . .. . .. . . .. . .. . .. . . .11 633 T 656

E~ 2

Te"M Senio, Flwe-eru~ 0,.. . .. . . .. . .. . . .. . . .. . .. . .. . . . . .. . .. . .. . . .. . . . 1.00, 1.07 "fee

.6138 3.055 IM3

2.5t

2LM4 2zm 2111,427 "An

.................................................... . 13 1 13.715 13,1059 13,98

7

017 4,462 4,725 4.623 ove, .. . . .. . .. . . .. .

. 7 .710 .,707 7,713

4.111611

?."a I'M l~w 1,64

7

...........

. 1,363 1.315 11259 1297

Over.............

. 590 248

APPlais . . .. . . .. . .. . . .. . . . . .. . .. . . . .

IA"1.2u

I ."$ Appeal Offioel 665 731 sm 856

A~dlw. . .. . .. . . .. . .. . . . . . . .

. lie ill 113 121 DiAl, . . .. . . .. . .. . . .. .. . .. . . .. . .. . . .. . . . . .. . . .. . .. . . .. 512 610 M 731

Fswd . . . .. . .. . . .. . I.. . . .. . .. . . .. .. . . .. . .. . . .. . .. . . .. . . I . . .. . .. n,' 3,

. Z014 LU?

sp-W 11 .. . .. . . .. . . . . .. . .. . .. . . .. . . .. . .. . .. . I . . . .. . . .. . . .. . .. . . .. . . 2.786 2.761 2,79

0 .. . . .. . .. . .. . . .. . . .. . . . . .. . .. . .. . . .. . .. . . .. . .. . .. . . .. . . .. . .. . . .. . .. . . .. . jn 1,050 111150 I'M ::--- .. .. - .. . - -- .. . . -

WAI 3,M3.M &M

C~ . . .. . . .. . . .. . 4A" 413121,

IAN 1,10 1.103 I'm

swife.w wiew...........

. 047 U7 916

m

lent 1170 IM 197

9

4011a : Rainsourserrents, are included In above figures.

.1 :rcludes terminall leave for average Positions realized for entire Service .

rcludes Office of International Operations, National Cornputer Center and the Data Center . I
7

4

Commissioners

ofInternal

Revenue

1862-1979

and Acting

Commissioners

during

transitory

periods .

Chronological List

GeorgeS. Boutwell

Massachusetts

July 17, 1862/Mar . 4, 1863

Joseph

J. Lewis

Pennsylvania

Mar . 18, 1863/June 30, 1865

William Orton

New York

July 1, 1865/Oct . 31, 1865

EdwardA. Rollins

New Hampshire

Nov, 1, 1865/Mar. 10, 1869

Columbus Delano

Ohio

Mar. 11, 1869/Oct . 31, 1870

Alfred Pleasonton

New York

Jan . 3, 1871/Aug . 8, 1871

John W . Douglass

Pennsylvania

Aug . 9, 1871/May 14, 1875

DanielD . Pratt

Indiana

May 15, 1875/July 31,1876

GreenB. Raum

Illinois

Aug . 2, 1876/Apr . 30, 1883

Walter Evans

Kentucky

May 21, 1883/Mar. 19, 1885

JosephS . Miller

West Virginia

March 20, 1885/Mar . 20, 1889

John W. Mason

West Virginia

Mar . 21, 1889/Apr. 18 . 1893

JosephS. Miller

West Virginia

Apr . 19, 1893/Nov . 26, 1896 W. St . John Forman

Illinois

Nov. 27, 1896/Dec . 31, 1897

NathanB . Scott

West Virginia

Jan . 1, 1898/Feb ; 28, 1899

George W. Wilson

Ohio

Mar. 1, 1899/Nov . 27, 1900

John W. Yerkes,

Kentucky

Dec . 20, 1900/Apr. 30, 1907

JohnG . Capers

South Carolina

June 5, 1907/Aug . 31, 1909

RoyalE. Cabel l

Virginia

Sept . 1, 1909/Apr . 27, 1913

William H . Osborn

North Carolina

Apr. 28, 1913/Sept . 25, 1917

DanielC. Rope

r

South Carolina

Sept . 26, 1917/Mar. 31, 1920

William M . Williams

Alabama

Apr. 1, 1920/Apr. 11, 1921

David H . Blair

North Carolina

May 27, 1921/May 31, 1929

Robert H . Lucas

Kentucky

June 1, 1929/Aug . 15, 1930

David Burnet

Ohio

Aug . 20, 1930/May 15, 1933

Guy T . Helevering

Kansas

June 6, 1933/Ocl . 8, 1943

RobertE . Hannegan

Missour i

Oct . 9, 1943/Jan. 22, 1944

JosephD . Nunan, Jr.

New York

Mar . 1, 1944/June 30, 1947

GeorgeJ . Schoeneman

Rhode Island

July 1, 1947/July 31, 1951

John B. Dunlap

Texas

Aug . 1 . 1951/Nov . 18, 1952 T. Coleman Andrews

Virginia

Feb . 4, 1953/Oct . 31, 1955

RussellC. Harrington

Rhode Island

Dec. 5, 1955/Sept. 30,1958 I

Dana Latham

California

Nov . 5 . 1958/Jan, 20, 1961

Mortimer M . Caplin

Virginia

Feb . 7 . 1961/July 10, 1964

SheldonS. Cohen

Marylan

d

Jan . 25, 1965/jan . 20, 1969

Randolph W. Thrower

Georgia

Apr . 1 . 1969/June 22, 1971

Johnnie M . Walters

South Carolina

Aug . 6, 1971/Api . 30, 1973

DonaldC . Alexander

.Ohio

May 25 . 1973/Feb . 26, 1977

Jerome Kurtz

Pennsylvania

May 5, 1977

75

Office of Commissioner of Internal Revenue

Created by Act of Congress, July 1, 1862

In addition, the following were Acting

Commissioners during periods of time when

there was no Commissioner holding the

office :

JosephJ . Lewis of Pennsylvania

from Mar . 5 to Mar . 17, 1863

John W. Douglas of Pennsylvania

from Nov . 1, 1870 to Jan . 2, 1871

HenryC . Rogers of Pennsylvania

from May1 to May 10, 1883, and from

May 1 to June 4, 1907

John

J. Knox of Minnesota

from May 11 to May 20, 1883

Robert Williams, Jr. of Ohio

from Nov. 28 to Dec. 19, 1900

Millard F. West of Kentucky

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

from Aug . 16 to Aug . 19, 1930

Pressly R . Baldridge of Iowa

from May 16 to June 5, 1933

HaroldN . Graves of Illinois

from Jan . 23 to Feb . 29, 1944

JohnS. Graham of North Carolina

from Nov . 19, 1952 to Jan . 19, 1953

Justin F . Winkle of New Yor

k

from Jan . 20 to Feb . 3, 1953 0. Gordon Delk of Virgini a

from Nov. 1 to Dec . 4, 1955, and from

Oct . I to Nov . 4, 1958

Charles 1 . Fox of Utah

from Jan . 21 to Feb. 6 . 1961

Bertrand M . Harding of Texas

from July 11, 1964 to Jan . 24, 1965

William H . Smith of Virgini

a

from Jan . 21 to Mar. 31, 1969

Harold T. Swartz of Indiana

from June 23 to Aug . 5, 1971

Raymond F . Harless of California

from May I to May 25, 1973

WilliamE . Williams of Illinois

from Feb, 27 to May 4, 1977 . I

ii iI
76 Principal Officers of the

Internal Revenue Service

as of September 30,1979

National Commissioner

Office Jerome Kurtz

Deputy Commissioner

WilliamE . William

s

Assistant to the Commissioner

Marvin Katz

Lauralee Matthews

David FP O'Connor

Assistant to the Commissioner

(Public Affairs)

A. James Golato

Assistant to the Commissioner

(Equal Opportunity)

EugeneD . Alexander

Assistant to the Deputy Commissioner

Alvin H . Kolak

Taxpayer Service and

Returns Processing

Assistant Commissioner

James 1 . Owens

Deputy Assistant Commissioner M . Eddie Heironimus

Division Directors :

Program Planning and Review

Suellen P Hamby

Returns Processing& Accounting

RussellE. Dyke

Taxpayer Service

Stanley Goldberg

Disclosure Operations

Howard T Martin

Tax Administration Advisory Services

GordonC. Hill, Jr.

Resources Management

Assistant Commissioner

Joseph T Davis

Deputy Assistant Commissioner

AlanA . Beck

Division Directors :

Facilities Management

RichardE . Simko

Fiscal Management

Joseph F Kump

Personne l

Anthony W. D'Amato

Training and Development

Orion L . Birdsal l

Security Standards and Evaluations

DominickJ . Lantoni

o

National Office Resources Management

HerbertJ . Huff

Compliance

Assistant Commissioner S . B . Wolfe

Deputy Assistant Commissioner

DonaldE . Bergherm

Division Directors:

Appeals

RoydellS . Rosted

Examination

John L . Wedick, Jr. Criminial Investigation

ThomasJ . Clancy

Office of International Operations

JosephG . McGowan

Collection

KennethE . Luke

Data Services

Assistant Commissioner

DonaldJ . Porter

Division Directors :

Data Center, Detroit, MI

James

E . Daly, Jr.

National Computer Center,

Martinsburg, WV

WilliamE . Palme

r

Service& Design

DanielN . Capozzoli

Systems Analysis

DonaldE. Curtis

Systems Programming

Carolyn Buttolph

Employee Plans/Exempt

Organizations

Assistant Commissione

r

S . Allen Winborn

e

Deputy Assistant Commissioner

RaymondA . Spillman

Division directors :

Actuarial

Ira Cohen

Employee Plans

FredJ. Ochs

Exempt Organizations

JosephA . Tedesco

Inspection

Assistant Commissioner

Robert L . Rebein

Deputy Assistant Commissioner

Teddy R . Kern

Division Directors:

Internal Audit

Rudolph Arena

Internal Security

WillaimE . Muroy

Planning and Research

Assistant Commissioner

RussellE . Dyke

Deputy Assistant Commissioner

WalterE. Bergman

Division Directors :

Internal Management Documents

JackG . Petrie

Legislative Analysis

Ronda(C. Blankenshi

p

Research and Operations Analysis

WalterE. Bergman

Statistics

Vito Natrella

77

Technical

Assistant Commissioner

GeraldG . Portney (Acting)

Deputy Assistant Commissioner

Aaron Feibel

Division Directors :

Corporation Tax

John W. Holt

Individual Tax

MarioE . Lombardo

Tax Forms and Publications

RoyJ . Linger

Office of Chief Counsel

Chief Counsel

Lester Stein (Acting)

Deputy Chief Counsel (General)

Stephen M . Miller

Deputy Chief Counsel (Litigation)

Vacant

Deputy Chief Counsel (Technical)

Lester Stein

Technical Advisor to Chief Counsel

Daniel F. Folzenlogen

Staff Assistant to Chief Counsel

James T Fuller, II I

Division Directors :

Administrative Services

Joseph H . Hairston

Criminal Tax

Robert W. Schafer

Disclosure Litigation

JamesJ . Keightley

Employee Plans

& Exempt Organizations

George H . Jelly

General Legal Services

GeorgeJ . Shaw, Jr.

General Litigation

Harold T Flanagan

Interpretative

JeromeD . Sebastian

Legislation and Regulations

RobertA . Bley

Tax Litigation

John H . Menzel (Acting)

!f
78

Regional

and

District

Officers

Central Region

Regional Commissioner

LeonC . Green

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

PatrickJ . Ruttle

Resources Management

Billy J, Brown

Examination

Jack P. Chivatero

Criminal Investigation

RichardC . Herman

Collection

Charles F Jones

District Directors:

Cincinnati, OH

Dwight L . James, Jr.

Cleveland, OH

Everett Lowry

Detroit, MI

Roger L . Plate

Indianapolis, IN

James W. Caldwell

Louisville, KY

Paul F Niederecker

Parkersburg, WV

T Blair Evans

Director, Cincinnati Service Center

John0. Humme l

Regional Counsel

VernonJ . Owens

Regional Director of Appeals

ClaudeC . Rogers, Jr.

Regional Inspector

JohnE . McManus

Mid-Atlantic Region

Regional Commissioner

WilliamD . Waters

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

HenryE . Leech, Jr.

Resources Management

Americo P. Attorri

Examination

Paul H . Thornton

Criminal Investigation

Robert L . Browne

Collection

LeroyC . Gay

District Directors :

Baltimore, MD

GeraldG . Portney

Newark, NJ

CorneliusJ . Coleman

Philadelphia, PA

James T Rideoutte

Pittsburgh, PA

Thomas L. Davis

Richmond, VA

JamesR Boyle

Wilmington,DE

F Clare Shy

Director, Philadelphia Service Center

Norman

E . Morrill .

Regional Counsel

Robert L . Liken

Regional Director of Appeals J ames J . Casimir

Regional Inspector

BenjaminJ . Redmond

Midwest Region

Regional Commissioner

Edwin P Trainor

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

John Ader

Resources Management

DavidS . Burckman

Compliance

Leon Moore

District Directors :

Aberdeen, SID

ThomasJ . Yates

Chicago, IL

Charles F Miriani

Des Moines, IA

MichaelJ . Murphy

Fargo,ND

Gerard R . Esposito

Milwaukee, WI

Lawrence M . Phillips

Omaha,NB

MitchellE . Premis, Jr.

Springfield, IL

IraS . Loeb

St. Louis, MO

RichardC . Voskuil

St. Paul,MN

C . Dudley Switzer

Director, Kansas City Service Center

RoyD . Clark

Regional Counsel

DennisJ . Fox

Regional Director of Appeals

Donato Cantalupo

Regional Inspector

JohnJ . Kelly

79

North-Atlantic Region

Regional Commissioner

Philip E, Coates

Assistant Regional Commissioners :

Taxpayer Service

& Returns Processing

Gary H . Matthews

Resources Management

PeteJ . Medina

Examination

Joseph Slipowitz

Criminal Investigation

RaymondC. Turner

Collection

ThomasR Coleman

District Directors :

Albany, NY

John B. Langer

Augusta, ME

JohnJ . Jennings

Boston, MA

Herbert B . Mosher

Brooklyn, NY

GeorgeS . Alberts

Buffalo, NY

Marshall P. Cappelli

Burlington, VT

Peter L . Dillon

Hartford, CT

JamesG . Quinn

Manhattan, NY

Charles H . Brennan

Portsmouth, NH

Francis

S . Miceli

Providence,Rl

CharlesE . Roddy

Director, Andover, Service Center

Joseph H . Cloonan

Director, Brookhaven Service Center

ThomasJ . Laycock

Regional Counsel

TheodoreE . Davis

Regional Director of Appeals

RichardE . Fogwell

Regional Inspector

Daniel Schiller
al]

Southeast Region

Regional Commissioner

HaroldA . McGuffin

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

WilliamB . Hartlage

Resources Management

Carol M . Fay

Examination

PhilipJ . Sullivan

Criminal Investigation

Anthony V Langone

Collection

ClaudeA . Kyle

District Directors :

Atlanta,GA

John W. Henderson

Birmingham, AL

Dwight T, Baptist

Columbia, SC

Harold Bindseil

Greensboro, NC

Robert

A . LeBaube

Jackson, MS

William Daniel

Jacksonville, FL

Charles0 . DeWitt

Nashville, TN

JamesA . O'Hara

Director, Atlanta Service Center

William E .Douglas

Director, Memphis Service Center

JamesD . Hallman

Regional Counsel

JackD . Yarbrough

Regional Director of Appeals

Tully Miller

Regional Inspector

Dale W . Gardner

Southwest Region

Regional Commissioner

Walter T Coppinger

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

BobbyG . Hughes

Resources Management

Raymond Asturnian

Examination

Percy P. Woodward, Jr.

Criminal Investigation

John M . Rankin, Jr.

Collection

LarryG . Westfall

District Directors :

Albuquerque, NM

.Francis L . Browitt

Austin, TX

Robert M . McKeever

Cheyenne, WY

MichaelJ . Kelly

Dallas,TX

Alden W. McCanless

Denver,CO

Gerald L . Mihlbachler

Little Rock, AR

PaulD . Williams

New Orleans, LA

Robert M .Cutts

Oklahoma City, OK

CharlesA . Parks

Wichita, KS

MauriceE. Johnson

Director, Austin Service Center

Carolyn K. Leonard

Regional Counsel

William B . Riley

Regional Director of Appeals

Douglas M . Moore

Regional Inspector

Paul F Kearns

Western Region

Regional Commissioner

ThomasA . Cardoza

Assistant Regional Commissioners :

Taxpayer Service& Returns

Processing

John D .Johnson

Resources Management

KennethG . Rivett

Examination

Elmer Kletke

Criminal Investigation

RichardC . Wassenaar

Collection

Paul R . Dickey

District Directors :

Anchorage, AK

Frank R . Berria

Boise, I D

PhilipN . Sansotta

Helena, MT

FrederickC . Nielsen

Honolulu, HI

William M . Wolf

Los, Angeles, CA

William H . Connett

Phoenix, AZ

PrescottA . Berry

Portland, OR

Ralph B . Short

Reno,NV

Gerald F Swanson

Salt Lake City, UT

Roland V Wise

San Francisco, CA

MichaelD . Sassi

Seattle, WA

ArturoA . Jacobs

Director, Fresno Service Center

Frederic F. Perdue

Director, Ogden Service Center

Robert H . Terry

Regional Counsel

Emory L . Langdo

n

Regional Director of Appeals

Ralph F. Albrecht

Regional Inspector

BillyG . Morrison

81
IRS Organization Chart

Assistants to the

Commissio:w

Commissioner

Deputy Commissione r

Assistant to the I Assistant to the

Commissioner cornmissiorve

Public Affair olvelo s

n

Assistant Assistant

Commissioner Commissioner

I—, 1-1

National Office

Field Offices

Assistant

Regional

Commissioners*

C=

Service Centers

(10)

Regional Commissioners

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