Annual Commissioner

Report of

Internal

1973 Revenue

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

Washington, D .C . 20402 - Price $2 .3 0

Stock Number 4804-00682
Honorable George P . Shultz

Secretary of the Treasury

Washington, D . C . 2022 0

Dear Mr . Secretary :

I am pleased to present to you the Annual Report

of the Internal Revenue Service for fiscal year 1973 .

As I became Commissioner late in the year, most of

the accomplishments reported were made under the

leadership of my able predecessor, Johnnie M . Walters .

The Service made substantial progress in 1973,

reaching record levels in many areas of tax administration . It also took a number of steps to increase

and improve service to taxpayers . The diligence,

judgment and integrity of Service employee!; are

responsible for what the Service accomplished last

year and what it will accomplish in the future .

Sincerely ,

Donald C . Alexander

Commissioner of Internal Revenue

Table of Contents

Letter of-Transmittal / i i

Report on Operations

Informing and Assisting Taxpayers / 1

Enforcement Activities / 9

Special Enforcement Activities / 29

Economic Stabilization Activities / 35

International Activities / 43

Legislative and Legal Activities / 53

Planning Activities / 61

Internal Management and Support Activities / 69

Receipts, Refunds and Returns Filed / 87

0rganization-Pri nci pal Officers

Organization of the Internal Revenue Service / 96

Internal Revenue Regions and Districts / 97

Principal Officers / 98

Historical List of Commissioners / 10 2

Appendix

Taxpayer Publications / 106

Tax Form Activity / 108

Court Decisions / 11 0

Statistical Table s

ii iii
Associate Supreme Court justice polls,

StOwatt (right) administers the oath .1

office to Donald C . At .. . ed., CiurnmISSID111

of

Internal Flevenuo . Looking on are f . 1 .

r .) secretary of Treasury George P, Shultz,

'13. Alexander . and James K Alexander.

iv

I

Increases In Gross Collections

Over Thirty Year Perio d

(1943-1973)-

S Billion.

220

200

140

120

200V S72A

1943 1948 1953 1958 1963 1968 197 - - 3

During this period significant changes in

the tax laws. the population . and in the

economy caused changes in tax receipts.

THE TAX DOLLAR

WHERE IT CAME FROM

FISCAL YEA6 1973

Individual Income Taxes--639

Corporation Income Taxes-160

Employment Taxes-220

Excise Taxes-70

Estate & Gift Taxon-29

Statistical Highlights

(Dollars In thousands)

t Grosiss Collections

Individual Income

Corporation lnwme

Employment

Estisit and Gift

Excis :

Refunds

"Number

Amount

Ratiur-Tiled

Returns Examined

Numbeir

-Tax Incream Recommended

Rot... Mathematically Vedrifled

Numimr

Amount or Tax lnh~,sase

Amount

01

Tex De.-. .

Delinquent Retums, Secured

Number

Amoun t

Delinquent Acmunts Wlected

P.-rit

2272 1973 change

SM 855.737 $M,79i,ZQ4 133

$108,879,186 U115,212,01116 14 .9

$34 .925 546 '$39 04513" 11 .8

$43 .714:001 ssKon.mis 19.1

15.489,969 U.975 .6a -9.4

$16.947,036 U6,WZ,3]Lg -1. 6

55,154 .983 63 .M .U4 14.4

$18,970 , 640 ~ 525,1111114,1150 36 .0

112 .000 .449 U6.9,110,404 4 . 4

1,695,848

$3,413,133

-2.770,971 4 .4

ss,ou,412 48. 5

72,482,000 72,271,656 0.7

S238 .9112 $2761IM7 15 .6

$119,05 $U6,11136 30 .7

a DOO siz in 14 :4

15 : ~

7

$452 324 S23 182 5

$2,327,585 SZ11145 .1,11,11; 0.8

V
Report on

Opbrations

Notes

All Yearly data are on a fiscal

year basis, unless otherwise

specified. For example, data

headed "1973" pertain to the fiscal year ended June 30, 1973

and "July 1" inventory items

under this heading reflect inventories as of July 1, 1972.

in many tables and charts, figures have been rounded and

may not add to the totals which

are based on unrounded figures .

For sale by the Superintendent

of Documents,U .S . Government

Printing Office, Washington,

D.C.

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Stock Number 4804-00682

Info rming and Assisting Taxpayers

Enforcement Activities

Special Enforcement Activities

Economic Stabilization Activities

international Activities

Legislative and Legal Activities

Planning Activities

Internal Management and Support Activities

Receipts, Refunds and Returns Filed
Informing

an d

Assisting

Taxpayers
Improved Service a

Major Objective

The Service is committed to

maintaining and strengthening

the American voluntary compliance tax system . This commitment requires the Service to inform taxpayers about the system

and their responsibilities and

rights under it, to give them

guidance in training in carrying

out their responsibilities, and to

provide direct assistance to the

greatest extent possible . Also

required are constant efforts to

simplify IRS forms, form letters,

publications, and procedures

and to ensure that IRS personnel are fully prepared to provide

high-quality assistance .

In 1973, improved service to taxpayers was one of the Service's

objectives, and a number of

steps were taken toward achieving it. It is a major objective for

1974 ,

Steps taken to meet the 1973

objective included expanding

the Taxpayer Information Program ; increasing direct assistance (including testing new approaches from improving taxpayer service); expanding the

Taxpayer Education Program ;

and issuing a large number of

published rulings, regulations,

simplified tax guides, and Service publications covering special

tax situations . Special efforts

were made to ensure a sufficient

number of qualified, well-tTained

personnel to give taxpayer assistence and to provide IRS personnel with internal publications

for guidance.

Expanded Taxpayer

Information Program

The Service maintains a continuing taxpayer information program which is refined and expanded each year . The various news media are fully utilized . In addition, Service personnel make tax-information

presentations to live groups and

to radio and television audiences .

In 1973, IRS spot announcements were carried by more

than 4 .800 radio stations and

film spots by over 800 television

stations free of charge as a public service. These stations assisted area offices by presenting

tax-information programs tailored to local interests and

needs. Programs for residents of

rural areas covered farmers' tax

problems ; those for urban areas

gave information of interest to

wage earners and small businLsses.

Field offices issued nearly 8,000

news releases to the media and

answered approximately 24,000

inquiries from newspapers and

broadcasters.

In addition, last year millions of

Americans found answers to

many of their tax questions in

weekly question-and-answer columns prepared by the Service

and published in thousands of

daily and weekly newspapers

across the nation .

IRS personnel made more than

5,0 , 00 tax-information presentations to civic and practitioner

groups . District and regional

offices distributed a tax-information film to theaters, television

stations, and civic organizations .

Direct Assistance

In 1973, the Service assisted a

record number of taxpayers . It

gave direct assistance to more

than 30 million taxpayers, a substantial increase over 1972.

Some 22 million persons telephoned, more than 250,000

wrote, and about 11 million visited Service offices, where approximately 4 million returns

were prepared . Some 21 .3 million taxpayer inquiries were received during the peak filing

season from January through

mid-April .

Throughout the 1973 filing season, office hours were extended .

Individual returns were prepared

for taxpayers needing such help .

Toll-free telephone service was

made available in 30 districts.

Satellite offices were estabfished . Taxmoblle and mini-information centers were used to

reach senior citizens and low-income groups. Cooperative efforts with military installations

were expanded . And some

offices arranged assistance visits to nursing homes, hospitals,

and other institutions .

Special Assistance to

POW's, MIA's, and

Natural Disaster

Victims

The Service took prompt action

to ensure that returning prisoners of war and families and survivors of persons listed as missing in action received all

benefits allowable under the

law . Special tax-iniormation publications were quickly prepared

and distributed. Representatives

were appointed in each district

to give servicemen and their

families prompt, courteous assistance . And the processing of

their returns received special at7he Sallit, Provided eclec"d t" 'S"S'

coca thi, year thr-gh -pb, offices in

many neighborhood

tention ; most were processed in

about 48 hours .

The Service also assisted taxpayers victimized by natural disasters. In the aftermath of Hurri~

cane Agnes, the Service publicized procedures for filing

claims, extended office hours for

providing service, and quickly

processed returns and claims

filed by residents of disaster

areas, A tax-information paper

was prepared for inclusion with

Small Business Administration

disaster loan checks. The paper

explained the tax treatment of

these loans and urged taxpayers

to contact their nearest IRS

office lot further information,

Taxpayer Service

Assistants Trained

To ensure high-quality taxpaYer

assistance, the training of Taxpayer Service Representatives

was expanded, A new course

ieatu ring six weeks of classroom

training was prepared for newly

hired TSR's. New courses were

also developed for all temporary

TSR's, including employees detailed from other functions to

serve as TSR's during the filing

period . in addition, a two-week

advanced tax law course was

offered to all experienced TSR's .

New Approaches

Tested

Over 9,000 returns were Prepared by mini-computers at tour

test sites during the 1973 filing

period . While the taxpayer

waited, Service employees fed

basic data into computers,

which then calculated the tax

and printed out a completed

Form 1040A ready for signature.

Taxpayer response was very favorable .

A Pre-Filing Returns Review

Test was conducted in two district headquarters offices to determine taxpayer response to a

Service offer to review returns

for accuracy before filing, Test

results were favorable, and

Servicewide use is under consideration .
The Service continued to provide ta x information in Spanish .

Districts with a high concentration of Spanish-speaking taxpayers employed Spanish-speaking

Taxpayer Service Representatives at 77

posts of

duty . News

releases and tax information

publications in Spanish were

widely distributed .

Seventy-four blind Taxpayer

Service Representatives, employed in 49 districts, provided

tax information by telephone. As

toll-free telephone service became available nationwide, the

Little Rock and Los Angeles Districts began testing a reading

aid (Optacon) for the blind . This

aid converts the * image of a

printed letter to one that can be

felt with one finger. If practical,

the Optacon would make it possible to use more blind individuals to provide taxpayer service .

Taxpayer

Education

Program

Expanded

In 1973, the Service expanded

its taxpayer education program,

reaching an estimated additional

20 million taxpayers.

There was a marked Increase in

the number of citizens who

served as volunteers under the

Service's Volunteer Income Tax

Assistance (VITA) Program and

in the number of taxpayers they

assisted .

Under this Program, training is

given to volunteers from civic,

community, church, senior-citizen, and student groups to prePiclu,ed above are .- ..hia, ditzen vol .

Ir .iniap t. the p, .pa, .tj .n

Inc"' "I '-s. After training .

they wi

"

than assist othe, retl, .d P. .pl. ih

com plel,ng thei, Is, fa,ms .

pare them to assist lower-income, disadvantaged, and elderly persons with their tax returns . This assistance includes

explaining the tax laws so these

persons can prepare their own

returns or assisting them, if necessary, in preparing their returns .

In 1973, 22,500 volunteer ssistors were trained by Service

personnel in 850 VITA classes .

Through their services, 700,000

taxpayers received free assistance, an increase of 120% over

1972 . Of this number, 175,000

were elderly and retired parsons, more than triple the number assisted the previous year.

This increase is due to the increased involvement of various

retirement organizations, particularly the Institute of Lifetime

Learning.

The number of college students

participating as volunteer assistors rose considerably. Many

colleges placed VITA in their

curricula and offered students

academic credit for their volunteer work. Junior Chambers of

Commerce cooperated to sponsor VITA nationwide .

In other Taxpayer Education

Programs, the Service provided

tax material to over 23,000 high

schools, teaching approximately

4,300,000 students to prepare

their own returns . Over 50,000

taxpayers in adult education

classes were taught how to prepare their returns . And more

than 67,000 tax practitioners attended training programs on

filing requirements and changes

in the law.

Several new programs were

added in 1973, including a volunteer assistance program for

Spanish-speaking taxpayers and

a Fundamentals of Tax Preparation Course for colleges and

universities, offered by more

than 600 schools to approximately 41,000 enrollees.

Tax Forms Activity

In 1973, the Service took a num .

ber of steps to simplify its

forms . Most notable was the

reintroduction of the short form

individual return, Form 1040A,

after an absence of three years.

Several recent changes in law,

such as the increase in the

standard deduction and in the

ceiling of the optional tax tables

to $10,000, made it feasible to

bring back the short form . over

22 million of the country's 78

million filers used this abbreviated return. In addition, the

Service issued step-by-step simplified instructions for preparing

returns and changed some public-use forms to make them

more understandable.

The Service also developed

Form 4875, used by more than

2,420,000 individual tax filers to

earmark $1 for the Presidential

Election Campaign Fund . This

form was a separate attachment

to protect the taxpayer's privacy

in designating political affiliation .

Other significant forms developed during 1973 to comply with

the Revenue Act of 1971 were

Form 1120-DISC, a return for

Domestic International Sales

Corporations, and Form 4874,

used by employers to compute

tax credits available to them

when they hire welfare recipients under Work Incentive (WIN)

Programs.

As part of its campaign to reduce overwithholding of income

tax on wages, the Service simplified Form W-4, Employee's

Withholding Exemption, and sent

a message to more than 4 .5 million employers requesting them

to ask their employees to review

their tax situation and amend

their withholding certificates

where necessary to reduce excessive withholding .

The Service also took steps to

correct the excessive withholding problem of part-time employees . Many students could quality

to file Form W-4E and thereby

avoid withholding of income tax

because they were not liable for

tax in the prior year and would

not be liable in the current year.

A letter and notice were sent to

30,000 School Placement Directors and 90,000 Personnel Directors urging them to post the IRS

notice and advise eligible students to file Form W-4E to avoid

income tax withholding .
Improvement of Form

Letters and Other

Communications

In 1973, the Service continued

its efforts to improve the timeliness, responsiveness, and clarity

of written communications to individual taxpayers,

A special unit in the National

Office reviews all form letters,

notices, and stuffers to improve

their quality, prevent duplication,

and eliminate obsolete communications . Of the more than

1,700 reviewed during the year,

370 were eliminated or consolidated . This centralized review is

aimed at continuing improvement in the tone, clarity, and appearance of these important

taxpayer communications.

Greater personalization of form

letters, including an individualized salutation, is possible now

because all Service Centers now

have the eintegrated Data Retrieval System (IDRS).

This per

sonalized approach eliminates

the "ballot boxes" which made

form letters long and hard to understand .

Tax Publications

Provide

Year-Round

Guidance

The Service provides many

booklets and pamphlets that explain the tax laws in nontechnical language.

Special publications help taxpayers faced with uncommon

problems. For example, when,

Congress enacted new tax relief

provisions in the wake of Hurricane Agnes, the Service produced a special edition of Publication 547, "Tax Information on

Disasters and Casualty Losses

and Thefts ." On announcement

of the Vietnam cease-fire, the

Service issued Publication 815,

"Tax Information for Returning

POW's" and Publication 816,

"Tax Information for Families

and Executors of Missing Servicemen ."

Other new publications released

in 1973 were Publication 581,

"Questions and Answers Regarding Original Issue Discount

on Savings Deposit Arrangements," and Publication 582,

"Federal Use Tax on Civil Aircraft., '

This year a group of representatives of professional organizations, small business associations, and governmental

agencies contributed comments

which led to many improvements

in the "Tax Guide for Small

Business."

IRS Bulletin

Provides Official

Guidance

The Service publishes rulings,

procedures, and other significant technical developments

in the weekly Internal Revenue

Bulletin for the guidance of taxpayers, tax practitioners, and

Service personnel . Semiannually

the contents of the Weekly Bulleti.

ns are cumulated and the

compilation published as Cumulative Bulletins .

During 1973 the following items

were published in the Bulletin :

580 Revenue Ruling s

37 Revenue Procedures

30 Public Laws relating to Internal Revenue matter s

16 Committee Reports

5 Ekecutive Orders

3 Tax Conventions

92 Treasury Decisions containing new or amended regulation s

17 Delegation Order s

6 Treasury Department Orders

1 Treasury Department Notice

4 Court Decision s

5 Notices of Suspension and

Disbarment from Practice

before the Servic e

193 Announcements of general

interest

Additional

Guidelines in

Published Rulings

and Procedures

Revenue Rulings state the Service position on issues of general

interest, and Revenue Procedures announce practices and

procedures that affect tax

-

-payers' rights and obligations .

The following table shows by tax

category the number of Revenue

Rulings and Revenue Procedures published during 1973:

Type Number

Administrative 36

Employment taxes 15

Estate and gift taxes 19

Excise taxes 116

Exempt organizations 25

Income tax 364

Pension trusts 34

Tax conventions 8

Total 617

Request for Tax Rulings & Technical Advice (Closings)

To. YetSubject Total

15 .756

Fiel d

Requests Request .

13,97 0

Tota l

Actuarial Matters

Admiriistl-t- P-is"m s

Employment & Sel!~Empftiyment Taxes

Engineering Question s

Estate

a

nd Gift Taxes

Exempt organizations other Excise T

. as

Oth

.,

In come Tax Matters

Pension Trusts

851

60

450 1

54

305

3,854

347

7 .151

2,574

798

47

379

1 00

26 9

1 .11, 25

6,797

1 .953

1,786

63

1 3 71

5436

462

11

2

354

621
i

New Bulletin IndexDigest System

A new Bulletin Index-Digest Systam Provides a comprehensive

and rapid method for research.

ing currently applicable Revenue

Ruling$ and other material published in the Internal Revenue

Bulletin for aH years after 1952 .

This System replaces the old Index-Digest Supplement System .

Each of the four Services in the

new System (income, estate and

gift, employment, and excise

taxes) consists of a 20-year

basic volume (1953-1972) and a

cumulative supplement covering

subsequent Bulletins. The supPlements are issued quarterly

for the income Tax Service and

semiannually for the other Serv.

ices. Every two years the basic

and supplemental volumes will

be consolidated into new revised basic volumes .

This System makes a handy

desk reference for anyone working with Federal taxes who must

refer frequently to the Bulletin.

8

Regulations Aid in the

Uniform Administra.

tion of Revenue Laws

Under a delegation from the

Secretary of the Treasury, the

Service prescribes regulations

implementing the Internal Revenue Code . The Regulations assist both Service personnel in

administering tax statutes and

the Public in complying with

them.

Normally, the Service issues

Proposed regulations through

Publication Of the complete text

in 8 Public notice Of Proposed

rule making. All notices invite

written comments on the proposed regulations and inform

the public of its right to request

a hearing and to comment at the

hearing . After considering the

comments and suggestions, the

Service revises Proposed regulations as necessary . Preparation

and Publication of a Treasury

decision in the Federal Register

follows. These regulations have

the force and effect of law .

Some regulations may be issued

without this procedure . For example, when a new law requires

immediate implementation, temporarY regulations are published

without prior notice, followed by

Permanent regulations issued in

the usual manner,

During fiscal year 1973, 19 public hearings were held on the

provisions of proposed regulations and were attended by 962

taxpayers of their representatives.

Pension Trust

Activity

Interest remained high in the

pension trust area as the

number of new pension and

profit-sharing plans continued to

climb steadily . Determination letters issued on corporate pension and -ofit-sharing plans

were up proximately 25%

over fiscal year 1972. About 35

million people now participate in

nongovernmental pension and

profit-sharing plans. Assets Of

the various types Of plans

equated approximately $166.5

billion as of the end of calendar

year 1972 . Problems stemming

from the large numbers Of

people and the billions of dollars involved in these plans and

the need for safeguarding -pensions caused much interest by

the press and Congress.

Various congressional hearings

have been held on the question

of pension reform . One issue

was which agency should

administer the laws regulating

retirement plans-the internal

Revenue Service or the Labor

Department. Other problems

considered were : requirements

for satisfactory coverage of

employees under qualified Pension or profit-sharing plans ;

vesting and portability of plan

participants' rights ; adequate

funding and insurance of plan

benefits; enforcement of plan

fiduciaries' responsibilities ; and

extension of tax advantages of

qualified plans to plans set Up

by individual employeesIt.- 0 - 11 ~ t

I

Determination Letters issued on Employee Benefit Plans, FY 1973

Daiamninati- jeft- j ... . d vith

respect I.- -fication of plans' I

InM .j Q-11

plans pp,.ved

N .mba, of p.rtj.jpAtjng

b. Plans 5i-pprova employees d

2

3,. Te'"'nat'on Amendmentof Plans s

4 . Investments

Case -t iss.lin- of

=Seemloisredionit hlefter and the,

disposals

P"T sharing - Id ,ok .1P-11 . . .. 11"

'total bonds plans Pfit"s ,

24,422 33,114 57,536

SD4,539

24

4

1 792

1 .063,254 1,567 .893

388 632

1 2 G05 3 791

4 :451 20 :n

9

164 351

1,943 3,525 5,461

9
Enforcement

Activities
Investigation of

Return Preparers

Continues

Disclosure of a high percentage

of incorrect and fraudulent

returns prepared by fly-by-night

commercial return preparers

resulted in a nationwide Return

Preparers Compliance Program

begun in 1972 and continued in

1973. Following development of

more sophisticated methods for

identifying suspect preparer

returns, the number of audit

examinations and intelligence

investigations of fraudulent return preparers increased .

During the 1973 filing period, the

Service issued press releases

cautioning taxpayers to choose

their tax return preparers carefully . In addition, it announced

that agents, without identifying

themselves, would be going to

hundreds of return preparers

with income and deduction data

and withholding forms to have

tax returns prepared.

A total of 4,977 tax returns were

prepared for Service employees

Posing as clients during the

1973 filing period . Of these

returns, 1,112 (or 22%)

appeared fraudulent. From January 1972 to June 30, 1973, the

Intelligence Division filed complaints, arrested or obtained

indictments against 420 tax

return preparers . So far 209 preparers have been convicted or

have pleaded guilty.

As of June 30, 1973, the Audit

Division examined 234,938

returns resulting in additional

tax and penalties of more than

$43.8 million for an average of

$187 per return examined . Approximately 4,200 preparers of

these returns were identified

during the 1973 program .

Courts are dealing more

severely with convicted return

preparers . More than 53 percent

have received prison terms .

During March 1973, five of six

return preparers sentenced

received prison terms varying

from three months to three

years .

The following are examples of

1973 convictions :

KENNETH GRIFFIN, a selfProclaimed tax expert, was

sentenced to three years in

prison after being convicted

of preparing fra u dulent tax

returns . GRIFFIN'

s

fraudulent

claims included a gasoline tax

deduction for a person who

was unable to drive and a

business telephone expense

for a person who did not have

a phone .

GILBERT RIVERA was

indicted on twenty-two counts

of aiding and assisting in preparing false income tax

returns . His clients testified at

the trial that RIVERA, without

their knowledge or consent,

had falsely claimed itemized .

deductions, personal exemptions, and employee business

expenses on their income tax

returns . Many of his cleints

could neither read nor write

English, and RIVERA frequently diverted to his own

use money intended to pay

his clients' tax liabilities . He

was convicted on all counts

and sentenced to nine years

in prison, with six years probation to follow imprisonment.

ROBERT WICKER was found

guilty of eighteen counts of

preparing false returns and

sentenced to three years in

prison. In passing sentence,

the Judge noted that 271

clients who owe $87,000 in

additional taxes were misled

by WICKER . The court stated

that WICKER "was a disgrace

to the tax return preparing

profession ."

RENE BAZARTE, a bell bondsman and tax return preparer,

pleased guilty to 3 of 27

counts of willfully aiding and

assisting in the preparation of

false and fraudulent income

tax returns. He was sentenced

to serve 54 months in prison .

BAZARTE gave his clients

cash refunds at the time he

prepared their returns . He

would subsequently increase

these refunds by claiming

additional exemptions .

Identif ication of

Noncompliance

Areas

Audits of all classes of returns

help assure that all segments of

the taxpayer public are scrutinized by the Service .

Through the Joint Compliance

Program, the Service conducts

research to uncover noncompliance conditions not identified by

other approaches. Audit, Intelligence, and Collection work

together to gather background

information and to initiate special returns selection and examination projects .

The objective is to identify significant noncompliance situations with substantial revenue

implications.

Several early projects demonstrated that income not reported

on an information return (Form

1099 or Form W-2) is frequently

omitted by the taxpayer. A program is under way to correct

this problem .

In 1973, a number of significant

areas of noncompliance were

identified .

A project in one district uncovered significant noncompliance

with Sec . 56, which provides for

a minimum tax on tax preference items . This finding may

have nationwide implications .

In other projects, Service employees have found noncompliance with income and employment tax requirements among

employees calling themselves

subcontractors.

Another project in this category

involved a state with a Special

Subsidiary Fund paying $100

million annually in consultant

fees for personal services . State

officials did not understand that

payroll taxes and information

returns were required with

respect to payment from the

fund until so advised by Service

personnel .

Another example concerns taxpayers receiving funds from a

Profit-Sharing Plan . Approximately 30% either did not report

their share at all or did not

report it properly.

Computer Selection of

Returns Expanded

The Service uses computers

programmed with mathematical

formulas to identify returns

having the highest probability of

tax error. The results have been

significant. The Service has

reduced the number of taxpayers contacted whose audit

would result in no tax change

and has identified returns most

needing examination. In 1973,

corporations with assets under

$1 million were added to the

computerized system for selecting returns for audit .

Computers Assist

Directly in Tax Audits

Mach ine-sensible records are

becoming available in more

audits where accounting records

are processed through automatic data processing systems .

Revenue Ruling 71-20 requires

taxpayers to retain pertinent

computerized tax records . The

Service has evaluated several

thousand AOP installations and

advised taxpayers concerning

records they should retain for

audit purposes.

These machine-sensible records

permit rapid retrieval, analysis,

and calculation of data needed

for audit . In addition, the computer checks great masses of

data that it would be impractical

to check manually and prints out

only data of audit interest .

These techniques save substantial manpower and money for

the Service and the taxpayer .

12

13
Results of Audit

Activity

The Service examined 1,770,971

returns in 1973, an increase of

4% from 1972. Additional tax

and penalties recommended

amounted to $5 .1 billion-an

all-time high, and an increase of

$1 .7 billion over 1972.

Three of every four examinations involved individual income

tax returns . These returns

accounted for $1 .1 billion in

tax and penalties recommended .

Corporate returns, representing

6 .9% of total examinations produced recommendations for

assessment of an additional $3 .1

billion .

Examination of estate and gift

tax returns resulted in additional

tax deficiency recommendations

of $700 million .

The table below shows the

number of returns examined in

1972 and 1973 by type of tax .

Number of Tax Returns Examined

(Figures in thousands)

Total

:

Fi~ld I Office

Type of Return 1972 1973 1972 1973 1972 1973

Grand total 1,696 1,771 593 Still

Income Tax, Total

Individual and Fiduciary

Corporation

Exempt Organizatio n

E t, Pension Trust (990P)

s to

is

n it Gift Tax

Excise and Employment

I Le- than 1 .000.

~ Not Available .

1,16 I'l a

1,497 1 .554 424 411 1,073 1 . W3

1 .343 1 .408 271 265 1,072 1 .143

136 122 135 UZ 1 (1)

is ZZ 18 ZZ (1) Q)

(S) 2 (1) 2 - -

40 49 35 41

158 167 133 136 255 1

Number of Tax Returns Examined

Thousands

1,696

1 .771

1,343

T .I .1

,409

154 1

I

6

156

168

Individual Corporation, Estate A E16sa I t

& exempt and gift employment

fiduciary organization s

Pension Trust (990P)

Percent of Total Returns Examined

by Type of Tax

Additional Tax & Penalties

Recommended on Audited Returns

Million, of dollars

3,415

5 .068

3,082

1972

Total

1 .002

Indi,id..l

fid-my

11835

1 .122

439

M 1973

7DO

Cor-ati0s, Estate

0'em ?I It gift

oprin'timi .mi,

Persian Trust (990P )

Percent of Total Additional Tax

Recommended by Type of Tax

164

"Is

Excise A

.,npu .yrn .nl

I

Estate

2 .3%

I .dividuill

Is Fiduciary

79.5%

Corporation

60.6 %

Includes gift, exempt organizations,

excise and emPloyment tax resu'll .

Includes gift . exempt organizations.

,xcise and employment hii, .,s,n, .

14

1 5

1972

M 1973
Many Examinations

Result in Decrease in

Tax Liability

Not all examinations result In

additional tax . Many resu It in a

decrease in the tax liability

reported by the taxpayer . In

1973, examinations disclosed

overassessmants on 83,780 returns, resulting in refunds of

$257 .7 million, an increase of

$31 .3 million over those in 1973.

The table below shows the

number of returns and the

amount of recommended Overassessments by type of tax :

Overassessments of Tax Exclusive of Claims for Refund

Tota l

Individual and Fid,ciary

C.,porlti . n

E.I.

Gift

Excise

Employment

Exempt Organizations

pre., d.d

thousand dollars)

1973 1972 1973 1972

S3, M 79,605 SZ75,679 $244,41 4

57 657

15:191

4

,

Z70

3. 452

B"

1 .649

"3

57,503 57,325 51,354 11 .781 176,249 162,695 3

.442 25"in 347 4.351) 218'15 .8420

3,613 728 464

1,857 9" 807

52 661 Im

Audit Operations

Continue At Service

Centers

The correspondence audit programs begun in 1972 at the

service centers were continued

in 1973 . In addition, the Service

conducted new programs to

centralize all or portions of several district correspondence

audit programs at the service

centers .

The Unallowable Items Program

continued as the major course

of the correspondence audit

workload . In this program taxpayers are contacted concerning

deductions which appear to be

unallowable . Computers identify

many of the unallowable items

and then print letters to taxpayers showing the correct tax and

explaining the correction .

Another new audit program

involved returns on which the

taxpayer erroneously claimed

head of household status. Returns as unmarried heads of

households were being filed by

taxpayers who did not meet the

requirement that the household

be maintained not only for the

taxpayer but also for a near

relative or dependent. As a

result, the Service is revising its

instructions to clarity the use of

the head of household tax rate.

Nring 1973, the service centers

examined 482,556 returns under

the program resulting in recommendations for additional assessments of $43 .5 million .

Audit Assists Exporters

in Electing New Tax

Advantages

To encourage export business,

the 1971 Domestic International

Sales Corporation (DISC) legislation provided optional tax

treatment for certain U .S .

exporters comparable to that

afforded by many foreign countries to their exporters.

Key personnel were designated

in district offices to provide

assistance to taxpayers who

intended to elect the tax treatmerit afforded to qualified corporations. As of June 30, 1973

4,164 companies have filed elections to be treated as

DISC

corpoirations .

New Procedures

Utilized to Examine

Corporate Giant s

Experience gained in the coordinated examination program has

shown the need for new procedures to examine our largest

corporate taxpayers.

A new technique under study is

industry-wide examinations. This

involves simultaneous examination of a group of taxpayers in

the same industry or trade . The

technique produces a more uniform and effective examination,

completed in a shorter period.

The computer-assisted audits is

another technique used in large

corporate examinations, To modemize its examinations, the

Service is using computers in

Combination with a statistical

sampling technique to establish

the poigntial tax change.

Employment Tax

Audits Benefit Worker s

Increases in the tax base and

rates of employment taxes over

the years prompted concern

over voluntary compliance in the

business community. Beginning

in 1971, the Service expanded

the employment tax audit program to assure that employees

receive proper earnings credit in

computing social security benL-

- fits and to enable them to meet

their obligations on a pay-a$-

you-go basis.

In `1973 the Service examined a

wide range of industries through

a "Package audit" of employers'

income and employment taxes .

Examining officers specially

trained in employment tax law

devoted the major part of their

time to employment tax audits of

large cases and provided technical assistance to regular agents

on other cases.

Since 1971, manpower applied

to the employment tax audit program increased 2() percent and

returns examined increased 112

percent. Additional tax uncovered under the program in 1973

amounted to $78.2 million, up

128 percent over 1971 .

New Approaches

Result in More

Current Audit s

The Service is making every

effort to complete its examination of individual returns within

26 months and corporation

returns within 27 months, Positive steps are being taken to

prevent any undue delay in COMplating examinations including

any delays by the taxpayer or

the taxpayer's counsel. Current

audits contribute to sound tax

administration and good public

relations .

inventory of old year returns

was reduced from 190,257

returns at June 30, 1972, to

125,687 returns at June 30 . 1973 .

16 17
Art Advisory

Panel Assists

in Valuations

Since 1968, a panel of art

experts - museum directors,

scholars, and dealers-has

helped the Service determine

the acceptability of valuations

placed on contributed works of

art and on art objects for estate

and gift tax purposes .

In its five years of operation, the

panel has reviewed approximately $82 million worth of art

and has recommended valuation

adjustments of approximately

$23 .5 million .

At the meeting held in 1973 the

panel reviewed works of art

valued in tax returns at approximately $12 million . It recommended a 39 percent decrease

in the claimed value of works of

art donated to charity and a 60

percent increase in the reported

value of works of art included in

estates . Approximately 50 percent of the valuations reviewed

by the panel require adjustment .

Exempt Organization

Activity Increases

In 1973 the Service made substantive programs to meet its

goal of examining all private

foundations by the end of 1974

(5-year cycle) . The 2-year cycle

for large exempt organizations

has been refined, and interest is

now centered on the largest,

most complex, private foundations .

18

The Tax Reform Act of 1969

required charitable exempt organizations to notify the Service of

their foundation status . Otherwise, such organizations will be

presumed to be private foundations . So far, 33,657 exempt

organizations have been classi. -

tied as private foundat ions,

These foundations reported $56

million under the excise tax provisions of the law. The Exempt

Organization Master File increased from 535,000 entities

in 1972 to 630,000 in 1973. New

features added to the Master

File for 1973 include (1) Audit

Classification Register (ACR), (2)

Private Foundation Audit Control

List (PFACL), and (3) Tentative

Cumulative List (TCL) of organizations defined as charitable

under Section 170 (c) of the

Internal Revenue Code,

The Service received 29,741

applications for determination of

exempt status during the year,

an increase of 1,155 from a year

ago . It issued 21,635 determination letters, or 7% fewer than

last year.

In 1973, the Service expended

236 man-years examining 22,028

exempt organization returns.

Examining officers recommended revocation of the tax

exempt status of 251 organizeti ons .

Large Overassessments Reported to

Joint Committee

All refunds and credits of more

than $100,000 on income taxes

and on estate and gift taxes are

reported to the Joint Committee

on Internal Revenue Taxation, as

required by law. During 1973,

1,532 cases involving overassessments of $1 .2 billion were

reported to the Joint Committee,

as compared with 1,171 cases

and $756.1 million in 1972.

Administrative

Appeals

System

Genera l

Historically, the Service has

encouraged the resolution of tax

disputes through the administrative appeals system rather than

through litigation. For the taxpayer who disagrees with a proposed adjustment, the Service

provides an opportunity for an

early, independent review of his

case at one of the 58 district

offices or 40 regional appellate

offices throughout the country. It

also provides conferences at

other locations which do not

maintain a full-time conference

staff.

Although district and regional

offices are unlike in jurisdiction

and authority, they have a

common objective of closing

disputed cases as soon as possible on a basis that reflects

impartial and reasonable administration of the law. The taxpayer can go to either the district or regional office for an

initial conference. If agreement

is not reached at the district

office, the taxpayer may ask that

his case be considered further at

the regional appellate office .

Appellate offices have greater

authority to resolve tax disputes

because they can consider hazards of litigation .

Early Informal

Hearing Provided

At both district and regional

appellate offices a conference is

offered soon after the case is

received at a convenient date,

time, and place . If the disputed

tax is less than $2,500, the taxpayer need not file a written

protest for a conference in the

district office . The same rule

a

pp

lies to a conference in the

regional appellate office if the

taxpayer has first had a district

conference.

Proceedings are informal . Taxpayers may represent themselves or be represented by

counsel . In either case, they are

given every opportunity to present their views. If the case is

not settled, the taxpayer is informed of further appeal rights

and options .

Generally taxpayers and Revenue Service conferees at district

or regional level resolve disputes on a mutually acceptable

basis. The result is that relatively few cases go to trial. In

the last ten years the Service

closed 97 percent of all disputed

cases without trial .

In 1973, the appeals function

disposed of 54,351 cases by

agreement ; the Tax Court

decided 1,293 cases and the

U .S. District Courts and Court of

Claims decided 445 cases.

Appeal Options

Available to Taxpayer

If there is no agreement at either district or regional level,

the taxpayer can, in most instances, file an appeal with the

U.S. Tax Court . Even if the case

is docketed for trial in the Tax

Court, the taxpayer may still

reach a settlement with the appellate office . Except in unusual

circumstances, the limely filing

of an appeal with the Tax Court

stays the assessment and

collection of the tax until the

Court has entered its decision.

As an alternative to trial in the

Tax Court, the taxpayer can pay

the deficiency in tax, file a claim

for refund (at any time within

two years from date of payment)

and either after denial of the

claim by the Service or after 6

months from date of filing the

claim file suit for recovery

against the Government in either

a District Court or the U .S.

Court of Claims.

Cases Considered

Through the Appeals

Syste m

Cases considered include individual and corporation income

tax, estate tax, gift tax, excise

and employment taxes, and offers in compromise . They cover

a wide range of issues, from the

most elementary to the most

complex ; they involve proposed

additional tax ranging from very

small amounts to millions of dol19

, J
lars. Deficiency cases are considered in both nondocketed status

(before appeal to the Tax Court)

and in docketed status (after appeal to the Tax Court). Claims

for refund are also considered.

About 72 percent of the appellate workload is in the nondockBled area . In 1973, appellate

offices closed 77 percent of

these cases by agreement with

the taxpayer . Agreements in this

category have averaged 80 percent over the last 10 years .

In the docketed case area, in

which settlement negotiations

are continued in appellate

offices, most cases are also

closed through agreement with

the taxpayer. For 1973, the appellate offices closed 74 percent

by agreement. Agreements in

this category have also averaged 80 percent over the last 10

years.

District offices have consistently

closed about two-thirds of their

cases by agreement with the

taxpayer.

The following tables and chart

show the processing of cases in

both district .and regional appellate offices in 1972 and 1973 .

For additional information see

tables 11 and 12, page 139.

20

District Conference Case Workloa d

It

. .

Cases pending July

C. ses received

Conference completed

Number Agreed

Agreed on percent of total

Cases pending June 30

- Revised .

Field : OffA dit Audit

9,477 4,431

21,943 17 .065

22 .999 17,757

15.327 13 .329

66 .6 75.1

8,421 3,739

Total

13,908

39,008

40,756

28,656

70.3

12 .160

Appellate Division processing of all cases for 1972-1973 (income,

estate, gift, excise, employment, and offers-in-compromise)

Na.br of

S at. .

Pending July I

Received

1172 1973

33,491 34,87gr

34,278 33's"

Disposed of . total

Byagfeement

32 .M . 33 .03

25,475 25,695

Unagreed : (Ovemssessments, claims, excise . em.

ployment . and offer-m-compromise rejections) 1,895 2,263

By taxpayer default on statutory notice or dismissal

by Tax Court 1,855

.

. 1.90Z

By petition to the Tax Court 2,587 2.50

Tried in the Tax Cou,t 1 .096 1,293

Pending June 30 34,871 34,734

r-revised .

IDRS Extended to

Delinquent

Accounts

In 1973 the Service collected

$2 .4 billion in delinquent taxes,

an increase of $119 million over

1972 .

The Service extended the Integrated Data Retrieval System

(IDRS) (see page 93 for a description) to the delinquent accounts area in 36 of 58 IRS districts in 1973 . On delinquent

accounts, the system automatically issues and controls case

assignments, monitors index

files, computes interest and penalties on accounts, allows direct

input of payments on accounts,

issues certain correspondence

and forms, and provides necessary management reports .

Withholding Tax Laws

Strictly Enforce d

Employers who withhold money

from their employees' salaries

must deposit it promptly to the

Government's credit. Some unscrupulous employers use these

monies belonging to others as

working capital. The Service

uses a number of approaches

toward these employers to enforce compliance with withholding requirements.

Under the Federal Tax Deposit

Alert program, the Service's

data processing system identified employers who are not making appropriate deposits. Before

the return is 'due, enlorcement

officers call on these employers

to learn why they have not complied .

To accelerate issuances and

thereby cope with delinquent

employers sooner, delinquent

accounts covering withheld tax

are taken out of the ordinary

processing cycle and immediately assigned to enforcement

officers .

In some cases the Service imposes criminal sanctions . Public

Law 85-321 provides a $5,000

fine and/or a year in prision for

failure to properly file or pay

withheld taxes . During 1973, an

intensified program resulted in

22 convictions.

Enforcement

Operations in High

Crime Areas

Even-handed tax administration

requires IRS employees to deal

with all types of individuals in

all locations. Revenue Officers

must often collect delinquent accounts and secure delinquent

returns from areas where there

is a high incidence of violent

crimes. To protect these employees, the Service is developing

.special training, using Government cars which show Federal

identification, and authorizing a

team approach for assignments

in these areas .

21
Returns

Compliance

Programs Stepped

U p

Although most taxpayers comply

with tax return filing requirements, the Service takes prompt

steps to identify those few taxpayers who do not fulfill their

obligation . Stepped-up enforcement efforts in 1973 produced

more than 932 thousand delinquent returns reflecting assessed tax, penalties, and interest of $523 million, some $71

million more than last year. A

total of 873,000 returns, assessed at $453 million, were

secured through various established delinquent returns programs-the highest results since

1966.

Results from Direct Enforcement

Million. .1 dollar.

4,034

2,446

Nationwide Highway

Use Tax Compliance

Program Completed

During 1973 the Service undertook a Nationwide Highway Use

Tax Compliance Program .

Through vehicle registration

data, the Service identified the

owners of virtually all trucks and

other motor vehicles appearing

liable for this tax . 168,858 delinquent returns were secured producing $34,900,000 in revenue .

This

p

rogram will continue in

1974, e m phasizing increasing

awareness of the Highway Use

Tax requirements by first-time

owners of a taxable truck .

523

729

From E-mination TaxPaYer del~hciucmt D,11nq,ent returns Math Verification

accounts co looted . . . ur.d

22

Delinquency

Prevention Stressed

Nationwide programs for specific types of tax are triggered

generally by working with Federal Agencies and private firms

to secure data that can be compared with the Service's several

different computer tax files .

Those individuals and businesses which are not listed in

these files, but which appear liable for taxes, are checked for

possible delinquency. In addition, other programs are developed by local officials to meet

problems of their particular

area. Supplementing these programs is a concerted effort to

prevent tax delinquency. For example, the Service distributes a

kit of tax forms and filing Information booklets to newly established businesses. This kit,

which is often delivered by a

Service representative, helps

familiarize the new businessman

with his Federal tax obligations

before his liabilities accrue .

Tax Fraud

Investigation s

The Intelligence Division enforces the criminal tax statutes

by investigating instances of tax

fraud including suspected income and excise tax evasion,

failure to file returns, false withholding exemption statements

(W-4), false claims for refunds,

false estimated tax credits, perjury, failure to remit trust funds

collected, and evasion of wagering taxes .

Improved techniques helped

produce a record number of

prosecution recommendations

this year . The Intelligence Division completed 8,601 investigations and recommended prosecution in 2,555 cases, a record

high.

Jail Terms for Tax

Convictions

The incidence of jail terms im,

posed for tax convictions

reached an all-time high in 1973 .

This year, grand juries indicted

1,186 taxpayers . Prosecution

was successfully completed in

1,104 cases, in which 914 taxpayers entered guilty pleas and

190 were convicted after trial .

Acquittals and dismissals totalled 55 and 112, respectively .

Well-Balanced Tax

Fraud Progra m

Tax fraud is not confined to any

occupational or social group .

This year, the Service recommended prosecution of taxpayers in 50 different industries and

occupations.

The following cases illustrate

the Service's effort to maintain

balanced coverage :

EDWARD KROCK, a nationally

known businessman and financier, was indicted for failing to

report more than $6,000,000 in

income from stock transactions, An investigation disclosed that KROCK evaded

$1,443,231 in taxes . KROCK

failed to appear for arraignment, and a bench warrant

has been issued for his arrest .

CHARLES D. McCORKLE, JR .,

owner of a large court reporting service in the Midwest,

was found guilty of failing to

file income tax returns for

1965, 1966, and 1967 . He was

sentenced to serve one year

in prison and fined $10,000, in

addition to taxes and penalties assessed . The Judge,

upon learning that McCORKLE

had failed to file returns for

the years 1955 through 1967,

declared that his was "the

most flagrant case of willful

failure to file that I have been

able to find in the lawbooks ."

CLARENCE LILLEHEI, a

world-renowned surgeon, was

indicated on five counts of

willfully attempting to evade

his income tax . Investigation

of LILLEHEI's tax returns disclosed that he failed to report

a substantial part of his fees

and income from other

sources and that he claimed

several personal expenditures

as professional expenditures .

LILLEHEI was convicted on all

counts, was fined the maximum amount of $50,000, and

received a six-month suspended sentence (upon the

condition that he work free of

charge in any Army Hospital),

with five years' probation.

ANTHONY J . GARGOTTO, a

gambler, was convicted on

each count of a 15-count indictment charging him with

willfully attempting to evade

payment of Federal excise tax

on wagers . He received a fiveyear prison term on each

count, to be served concurrently . Betting records seized

by the Louisville Fire Department during a fire at GARGOTTO's handbook premises

led to his conviction .

.GENE F . REID, a tile setter,

pleaded guilty to three counts

of preparing and presenting

fraudulent claims against the

Government for the years

1967, 1968, and 1969 . REID

used various schemes, including filing a joint return w hen

he was not married, falsely

claiming credit for income

taxes withheld, and failing to

report income received . He

was sentenced to one year in

prison and placed on two and

one-half years' probation.

23

~0
Referrals to the

Department of

Justice

In 1973, the Service forwarded

prosecution recommendations to

the Department of Justice in

1,803 income and miscellaneous

criminal cases (involving 1,797

prospective defendants) . This was

an increase of 33 percent over

last year. In 1973, indictments in

such cases were up 9 percent.

In income and excise tax criminal cases, the Court results included : 914 guilty or nolo contendere (no contest) pleas, 190

convictions after trial, 55 acquittals, and 112 dismissals .

A comparison of indictments

and court actions for the last

two years appears at the right .

24

Cases Involving

Criminal

Prosecution

Cases received in the Chief was $59 million more than the

Counsel's Office with recommen- prior year.

dation of criminal prosecution

involved additional taxes and

penalties of $252 million . This

An analysis of the receipt and

disposal of criminal cases in the

Chief Counsel's Office follows :

Receipt and disposal of criminal cases in Chief Counsel's Office

Status 1972 1973

Pending July 1 2,467 2.762

Received, total 1,680 2.385

With recommendations for prosecution 1 .523 2,304

With equests for opinion, etc. 15 7

Disposed of, total 1,38 5

Prosecution not warranted 94 104

Department of Justice declined 51 72

Pr9secutions

~' .

.9 1,077

Opinions delivered 58 46

All other closings 167 251

Pending Jun . 30

Results of criminal action in tax fraud case s

Action

2,762 3,597

Number of defendants

1972 1973

Tota

Indi Ctments and informations I 1,085 M86

Disposals, total 1,037 1,271

P ea, guilty or nolo contendere 733 914

Convicted after trial h 113 190

Acquitted 40 55

Nol-prossed a, dismissed 1 151 112

Inc me and miscellaneous cases !

Indictment- informations Dispose 1 .074 1 .176

I ., let.[ 11011 1.261

Plea . guilty or paid contendere 722 908

Convicted after trial 113 186

4cq .ilt:d

3' 11

..f

.pro sed or dismissed 1

l,7

.2

I 6chn is Wagering Ta I .,

. Case s

.is'osals, nd -Ii.-adl 1 1 . .1-ations 11 10

26 10

P ea, guilty or nod contendere 11 6

Convicted after trial I'

1

4

Acquitte d

Not prossed or dismissed 14 0

Ind

u d

.s cases dismissed for the following reasons : 11 because of death of principal

d itendant, 3 because of serious illness, 4 because of defendant being mentally in-petent

to stand trial . ,it 44 bc-use principal defendant had pleaded guiltyor had been c-11ted in a related ~ se .

,

Iriclu des income, estate, gift, and excise taxes other than wagering, alcohol, tobacco .

and firearm s taxes.

Additional detail on legal workload involved in the prosecution

of criminal cases by Service attorneys during the past two

years is provided in the following table :

Tax and penalty and number of tax years involved in criminal fraud

case disposals

(Exclusive of wagering and coin-operated gaming device cases )

Disposition

Tota l

Prosecutions

All other closings

Tax years Tax and Penalt y

1972 1973 1972 1973

3,344 3.211 S77,912,774 $126 .093,134

2,890 2.939 55 .377,297 114 .339 .945

454 273 22,535,477 11 .753 .189

I Includes cases declined by Department of Justice .

(in thousands of dollars)

item

Summary of

Additional Taxes

From Direct

Enforcement

Additional revenue resulting

from direct enforcement historically has represented a relatively small part of total tax

collections. The main importance of direct enforcement cannot be expressed in dollars . Its

importance lies in reassuring the

public that the Service has an

effective enforcement system,

and a balanced program aimed

at equitable enforcement of the

law for all taxpayers, regardless

of position or wealth .

The table below sets forth for

the last two years the source of

additional tax, penalities, and interest assessed and certain

other results of direct enforcement .

Gross tax, penalties and interest resulting from direct enforcemen t

1972 1973

Additional tax. penalties, and interest assessed,

""I , "

407 5 .286 .453

From . . m1ratlian I tax let .-, late N015,724 4.034 .402

income tax . total 2 .683 .261 3.459 .711 3

Corporation 1,227 .241 2,517 .982

incMd .ril and fid .cuiry 956,021 941,801

Estate and gift tax 390,923 403 .943

Em pl.yment tax (including withheld income tax) 95,234 82 .240

Exc,se tax 36 .305 89,43 6

From mathematical verification of income to, returns 238,982 Z76317

F~ mce .om verification of estimated tax pa-ents claimed 374 .377 452 .552

I quent returns secured . total 452,324 523 .18 2

By 1 :,~ ; :cl ,,,I,cl.,.n ol-s-it 380,676 452 .604

ey d s 't udn, -- n s 71 646 70 .578

Delinquent taxes c .11-mcd, total 2,327 .585 Z."6116 0

1~1 ._-, 11 - 11 - I 25

I
Workflow in the

Service and the

Courts

The following table provides information on work processed by

the Service for years 1972 and

1973 . The major portion of the

workload results directly from

the returns filed involving income estate and gift taxes. The

time required to process a return depends on the complexity

of the items and the issues involved . Many returns are processed in a short period while

others require work by different

activities and are not closed

during the year of filing .

The unit of measurement at the

audit level is on a return basis

while beyond that level it is on a

case basis . A case may involve

one or more returns and more

than one taxpayer and may include returns which span a number of years .

Workflow in the Internal Revenue Service and the courts, fiscal years,

1972 and 197 3

Items

Returns

1973

Tax returns filed . total

Individual incom e

Corporation income

Estate and gift

I, mploymnt Excise

Other income

Income, Estate . and Gift Taxes

Number o returns examined (including forms ago)

Returns with adjustments pro used by audit dnn .p-s

Disposed of by audit divi

Agreed paid, or defaulted

Tran started to appellate

Other

civil Case s

Total received in appellate divisio n

Disp sed of by appellate divisions : Agreed, paid, or d

etautte .1 d

Courts of original jurisdiction:

Tax -rt :

Total petitioned to Tax Court

Dis issed

Settled by stipulatio n

Settled by Tax Court dacisi.n

Decided by'rax Court. but appealed

Diitt,ict courts and Court of Claims:

Tota I I -led in district courts and Court

Settled in district courts and -f Cl~i~ ~ Court of Claims

Cal, Decided by district courts and Court of Claims

rts of Appeals:

Settled by coult.5 of appeals decision

Favo b a to Governmen t

F V

=

a . b! a to taxpayers

Modifie d

Decided by C

.u

its of appeals but reviewed by

S .P'aSupreme Court

me Court

:

Settled by Supreme Court decisio n

Fraud case s

Received for inve stig.t .- in intelligence divisions

Disposed of by intelligence diviSions :

Prosecution recommended

Pro-, tion no, recommended

Disposed or by Office of Chief Counsel :

Prosecution no, -named, Inc ding 1-s

pi .lined

by he

Depa tment of Justic I' e

Pro secu ti.ns

'1972

112,000 .449 116,90,404

77.105,693 80.366,102

1,88" 819 1,946.534

383~576 445 .870

22:007 335 Z3 9" 45

1 31' :

'12 "

:

1 .311 .1 . 8 .694,09 '"a : 3"3

1 .537 .302 1,603 347

1,024,005 1,104 :261

983,216 1,064 437

36,733 36:3 -

4,056 3,45 6

Z2,204

18,893

20.500

19 .787

8,949 9,642

954 1 .018

6 .673 6.927

ago 951

268 Z56

1,042 13'

836 '13

460 366

463 364

2" 12.

113

36 25

9

7 .354 7.498

1 .795 21555

7,167 6, "s

151 176

1,009 1,007

Amounts of revenue involved a

.

t each level of the tax system fiscal years 1972 and 1 973

Millions of dollars

197Z 1973

Item

Internal revenue crill-titins, tota l

nd ividual income I .. . i.

total withholding

Othe r

Corporation income texEstate and gift taxes

Employment taxes

Excise taxes

Income, Estate. and Gift Taxes

Civil case s

Additional tax and penalties in cases disposed of in

audit divisions by agreement, Payment or default

Additional tax and Penalties in c-sas diaP ... di of i n appel ate divisions bYagreement. Payment ordef. .It Additional tax and pi-rilti- determined by settle. dd!nt in Tax Court A Clitional tax and Penalties determined by Tax . .

rt decisions :

Dismissed

Decisions on merits

Additional tax and Penalties in cases decided by Supreme Court a n Courts

of Appeal s

Amount refunded t .dtaxpayers as a result suit. of refund

Fraud crisas

Deficiencies and Penalties in Cases disposed I in

P ac intelligence "riatic.".d,,,,i . r .

msecution not watrante'd"and cases declined Department of Justice . mm do" ! by

209 .856

108 879

9325 :200

.679

34 926

5

13 : ' .714"

16,114 7

1,41 9

401

196

223

52

Z37,787

125 .112

99 .092

27 017

39 :045

4 976

52 :022

16 .572

1,98S

493

10 9

10

so

24 6

zi

p

I

26

27
Special

Enforcement

Activities
War on Narcotics

Traffickers

Continues

1973 was the second year the

Service participated in the war

on drug traffickers.

The effectiveness of the coordinated effort of the Bureau of

Narcotics and Dangerous Drugs,

the Bureau of Customs, and the

Internal Revenue Service was i [-

lustrated in April 1973 ' when a

massive narcotics conspiracy i.

nvestigation was completed in the

New York area .

*

Eighty-six indictments were returned against

major heroin and cocaine dealers. The two key figures in the

conspiracy are targets in the

IRS Narcotics Traffickers Program . One of the two, described

by the U .S . Attorney's Office as

"at the very top of the distribution system," was the subject of

a five million dollar jeopardy assessment .

Currently, the main emphasis is

on identifying new targets . As

major traffickers are arrested

and imprisoned, a strong effort

is made to identify individuals

who may be replacing them .

Through June 30, 1973, the Target Selection Committee identified 1,622 targets . The Service

completed criminal investigations on 646, with 271 prosecution recommendations, In addition, 122 individuals have been

indicted and 52 convicted for

tax violations . The average sentence imposed on those convicted has been 30 months .

The following cases show some

of the sentences and fines :

-Richard Lee Barksdale, identified as the major source of heroin and cocaine in the Fort

Wayne, Indiana area, was convicted on three counts of tax

evasion and received the maximum sentence allowed under

the law-15 years in prison and

a $30,000 fine .

-Lester Ramsey, a Detroit heroin wholesaler with nationwide

connections, was convicted

0

n

two counts of tax evasion and

sentenced to serve 10 years in

prison .

-Samuel Harris, a narcotics

dealer in Pittsburgh, Pennsylvania . was sentenced to 4 years in

prison and fined $13,000 upon

conviction on two counts of failure to file income tax returns

and one count of income tax

evasion.

-Vincent Papa, a heroin distributor in the New York area,

pleaded guilty to tax evasion

and narcotics possession charges

and was sentenced to five years

in prison .

Tax assessments against narcotics violators reached $148 .7 million in 1973 . The largest tax assessment ever made in a

narcotics case occurred in January 1973 . The trafficker, from

Brooklyn, was indicted for income tax violations in addition

to related narcotics charges . An

assessment of $7 million was

made through the coordinated

efforts of Service agents in Las

Vegas, New York, and Atlanta .

The Treasury Law Enforcement

Information and Communications

System is now operational in the

National Office and most Regional Offices. This system provides access to information in

the U .S . Customs Computer in

San Diego, California, and the

National Crime Information Center in Washington, D.C ., and

forms a common communi.cations network linking all Treasury Enforcement Agencies. .

Organized Crime

and Strike Forces

Since joining the Federal coordinated drive on organized crime

in 1966, the Internal Revenue

Service has expanded its efforts

to 18 key locations throughout

the United States. Each Strike

Force is organized by the Department of Justice, with Federal

investigative agencies led by a

Strike Force Attorney-in-Charge .

The Service has been the major co

ntributor of investigative manpower .

Since inception of the Strike

Force, 238 organized crime

members and their associates

have been convicted or have

pleaded guilty to various tax

charges . More than $500 million

in additional - taxes and penaltiles have been proposed for assessment .

The following are examples of

Strike Forces activities :

Approximately 100 Service

agents swept the Boston area in

a drive to collect an estimated

$3 .5 million in unpaid excise

taxes from 62 bookies . Revenue

officers seized bank accounts,

autos, and other property .

The Service filed tax liens totalling $1 .8 million on the personal

property of five Hartford, Connecticut men who allegedly ran

bookmaking operations grossing

$18 million a year.

A Miami Strike Force investigation of Ettore Coco resulted in

his conviction, a 15-year prison

sentence, and a $60,000 fine for

extortion and interference with

interstate commerce. His associate, Louis Nash, was sentenced

to 10 years imprisonment and

fined $5,000 .

New York crime figure Aniello

Dellacroce was sentenced to

five years in prison and fined

$15,000 for income tax evasion .

He is reputed to be the heir-apparent to Carlo Gambino, organized crime's "boss of bosses ."

While the trial was in progress,

there were attempts to intimidate witnesses, and one key witness was relocated because of

possible retaliation .

in Las Vegas, Sam Cohen and

Morris S . Lansburgh pleaded

guilty to charges of conspiring

to evade the income taxes of

the Flamingo Hotel and of conspiring to violate the interstate

gambling statutes. Both were

sentenced to one year in prison

and fines of $20,000 .

Former United States Congressman Cornelius E. Gallagher

pleaded guilty to evading

$74,000 in income taxes . He was

sentenced to 2 years in prison

and fined $10,000 .

30 31

i
Special

Enforcement

Training

The Service's manpower commitment to Special Enforcement

Programs, which increased

steadily through 1973, continues

to demand specialized agent

training. The Service recently

developed a two-week course

for revenue agents in special

enforcement techniques. By

early 1974, this training will be

available to all revenue agents

assigned to the Strike Force or

Narcotics Trafficker Programs.

The Service trained 423 new

special agents last year, surpassing the 1972 record of 405

trainees. In addition to seven

weeks of basic training, all new

special agents are given five

weeks' training in income tax

law and a seven-week course in

criminal investigative techniques

during their first year in the

Service .

In cooperation with the Law

Enforcement Assistance Administration, 25 state and local law

officers completed the special

agent basic school in 1973 .

Since 1969, the Service has

trained 125 state and local

officers .

A class Of special agent train .. . listeas

attentively to a lecture on criminal aspects

of tax law .

Now York City Police Department awards McCarthy . Deputy Commissioner NYPD ; DonSpecial Agent Thomas Egan a Certificate for ald Cawley, Commissioner NYPD : Efflott

Ins participation In the investigation of s Gray. Director of Internal Revenue, Manha,

major c1n,,j rincy in In . at, golk tan District ; Egan; and John Schawaroch, an No.

York ,a

.

. Pict red

(I

to .) W?l

[a.

Chi at Inspector NYPD ,

32

33
Economic

Stabilization

Activities II
Background

The Internal Revenue Service

has played a key role in administering the Economic Stabilization Program since its inception

in August, 1971 .

During the 90-day freeze

(August 15 to November 15

1971) the Service operated locai

service and compliance centersunder the direction of the Office

of Emergency Preparedness

(OEP) .

On November 15, 1971, Phase 11

began, featuring a set of controls on prices, wages, and rents

designed to hold the yearly rise

in prices to 2.5 percent and

wage increases to 5 .5 percent .

The Service then took over

responsibility for directing administrative activities. Policy direction was received from three

bodies : the Cost of Living Council, the Price -Commission, and

the Pay Board .

Phase III replaced Phase 11 on

January 11, 1973 . While Phase

III placed mandatory controls on

about 850 of the Nation's largest

firms and on certain problem

industries, it emphasized voluntary adherence to price and

wage guidelines . The Cost of

Living Council became the sole

policy-making body, and the Pay

Board and the Price Commission

were abolished .

Service Activities in the

Stabilization Progra m

The Service's role in the Economic Stabilization Program h a s

varied as emphasis has

changed . During Phase 1, 1 RS

used most of its 3,000-man Stabilization workforce to answer

questions from the public and to

investigate complaints. During

Phase 11, IRS, the principal

contact point with the public

on Stabilization matters, was

charged with three major functions :

1 . providing the public with

information needed to comply

with regulations ;

2 . serving as the initial contact

on citizens' requests for

exceptions or exemptions

STABILIZATION

MANPOWER UTILIZATIO N

COMPLIANCE

AND

ENFORCEMENT

55%

PHASE 1 1

June 30,1972-January 11, 1973

300D Positions

and handling appeals from

judgments or interpretations ;

an d

3 . investigating complaints of

alleged violations .

in Phase III, IRS responsibilities

were :

1 . providing investigative support to the Cost of Living

Council ,

2 . monitoring the economic

activity of selected industries ;

3 . answering inquiries and providing information to the

public, and

4 . acting on exception requests

and hearing appeals from

health and food processing

industries.

COMPLIANCE

AND

ENFORCEMENT

69%

PHASE III

January 11 . 1973-June 30,1973

3000 Positions January-April

2SOO Positions May-June

Phase 11 Compliance

and Enforcement

The Internal Revenue Service

was solely responsible for the

Stabilization Compliance Program throughout the United

States . Service personnel investigated complaints of alleged

violations, conducted surveys on

compliance levels, and performed investigations similar to

audits.

Special investigations also

developed information on selected firms for the policy bodies.

From July 1973 until the end of

Phase 11, the Service completed

about 3,000 full-scale investigations and 4,800 special investigations .

Complaints of Alleged Violations

R .-im . PHASE 1 1

12,000

11,000

10,OOD

9 .000

81000

7,000

6,000

5,000

4,000

3,GDD

2,060

1,000

Surveys of high public-visibility

industries (e.g . food retailers,

lumber firms, health insurers,

auto dealers/manufacturers, and

hotel/motel industries) resulted

in substantial savings to the

public . For example, 93 food

retailers (50 having sales greater

than $100 million) entered into

compliance agreements resulting

in rollbacks of over $5 million .

PHASE III

7/31/72 8/31 9/30 10/31 11/30 12/31 1131/73 2/28 3/31 4/30 5/31 6/30/73

I

36 37
I

Inquiries

Written and oral inquiries

declined steadily throughout

Phase It. During the first two

weeks, IRS responded to

180,000 questions . For the last

several months, weekly inquiries

averaged 35,000 . Manpower

released from the inquiry area

was, for the most part, diverted

to compliance activities. Altogether, a total of 3.4 million

inquiries were answered during

Phase [I .

The Service conducted a survey

of auto dealers to ensure that

they computed base prices

properly and kept within profit

margin limitations. In surveys of

approximately 300 lumber companies the Service checked illegal price increases and ensured

item-by-item pricing compliance . A significant number of companies were found in violation and

ordered to roll prices back.

Lifting controls on rents and on

most firms reduced the number

of inquiries to IRS offices . However, some manpower was

shifted to other program areas

as workload declined .

38

Oral and Written Inquiries

R,ceipts

225,000

200,000

175 .000

150.000

125,003

100 .000

75,000

50,000

25,0000

PHASE 11 PHASE III

7/31/72 8/31 9/30 10/31 11/30 12/31 1/31/73 2/28 3/31 4130 5/31

Rollbacks Decline with

Increased Awareness

During the latter half of Phase

11, over 7,200 rollbacks were

accomplished, mostly in rent

control . This decrease from the

11,000 rollbacks in the first half

of Phase 11 is attributed to

increasing public awareness of

controls and IRS compliance

activities.

Industry Monitoring

System

The Service established a nationwide Industry Monitoring System

to provide information about

pricing trends in selected industries, to identify apparent violations of guidelines and to promote nationwide compliance .

The Service's primary mission in

the price area has been to

investigate the pricing practices

of the approximately 850 firms

with sales of $50 million to $250

million. A special three-month survey of

450 of the nation's larger firms

is now being concluded. This

survey will remind the business

community of its obligation to

maintain certain records and to

voluntarily support Phase Ill .

Service personnel contacted

27,000 retailers, wholesalers,

and packers to assure compliance with pricing and posting

requirements.

APPEALS

R-i.t.

700

600

Soo

400

300

200

100

PHASE 11 PHASE II

I

7/31172 8/31 9/30 10/31 11/30 72/31 1/31/73 2/28 3/31 4/31 5131

39
Exceptions/ Exemptions, and Appeals

Sometimes regu lations create an

unforeseen hardship or marked

inequity, requiring exceptions

and exemptions to provide relief.

An "exception" is a waiver of

one feature of a regulation as it

applies to an individual or firm .

An "exemption" is a waiver of a

regulation as it applies to certain classes of property .

EXCEPTIONS AND EXEMPTIONS

Recelpt5 PHASE 1 1

1,700

1 .600

1,500

1,400

1,30 0

1 .200.

1,100

1,000

900

Soo

700

600

500

400

300.

200

100

0

When the Cost of Living Council became the sole Phase III

policy-making body, it assumed

the authorities of the Price Commission and Pay Board . Delegations made by these organizations to IRS were rescinded. An

exception and appeals program

was, however, maintained for

those firms still under mandatory

controls .

PHASE II I

7/31/72 8/31 9/30 10131 11/30 12/31 1/31/73 2128 3/31 4/30 5/31

40

Early in the Program, IRS had to

pass exception requests to the

appropriate policy body for decision . By the end of Phase 11, IRS

had been delegated responsibility for most exceptions affecting

firms with annual sales of less

than $50 million .

The Cost of Living Council acts

on all exception requests or

appeals by firms with sales over

$50 million or on large pay matters. The Service received authority to decide on price matters

affecting smaller firms.

The change in the application of

Stabilization regulations and the

change in delegated authorities

reduced IRS receipt of exception requests from a weekly average of 400 to 200 .

60-Day Freeze

On June 13, 1973, President

Nixon ordered a 60-day freeze

on most prices . The Cost of

Living Council and the Internal

Revenue Service were given the

responsibility for enforcing the

freeze regulations, answering

inquiries, and processing requests for exceptions and exemptions . IRS field offices were

fully prepared for freeze operations by June 15.

In some areas

office hours were extended to

better serve the public .

Phase III Compliance

and Enforcemen t

With Phase III wage and price

guidelines operating mainly on a

voluntary basis, compliance and

enforcement assumed a different

perspective . The responsibility

of the Cost of Living Council

was to determine twhether violations had occurred and to order

rollbacks and refunds. The

responsibility of the Service was

to serve mainly as a fact-finder

for the Council .

528-4G8 0 - 73 - 4

Support Activities

Publications

Encouraging voluntary compliance required a strong program

to explain complex Stabilization

regulations in plain language.

The Internal Revenue Service

took two approaches to this

task. It developed a series of

publications explaining the regulations and issued special publications to selected segments of

the economy . Copies of Stabilization publications were sent to

associations or organizations for

distribution to their members

and for reproduction in their

periodicals . Some of the general

;nterest publications were transated into' Spanish . The Service

has distributed over 18 million

copies of stabilization publications .

Special Program s

On occasion, the IRS participated

in special-emphasis programs to

deal with emergencies . For example, after the damaging floods,

IRS maintained a special alert to

stop price gouging . Also in October, November, and December

of 1972, Service investigators

maintained a "Rent Watch" to

protect the new Social Security

benefit increase from raised

rents.

41

I

i
International

Activities
Introduction

The Service has a broad overseas program consisting of three

areas : (1) administrating tax

laws which apply to U .S. citizens living abroad, nonresident

aliens, and foreign corporations ;

(2) providing - assistance to

developing countries in Improving their systems of tax administration ; (3) participating in the

negotiation of tax conventions or

treaties with foreign countri.as to

prevent double taxa I ion . The

more important highlights and

accomplishments in carrying out

these duties are related in the

following pages .

Foreign Posts

Serve U.S.

Taxpayers Abroa d

The Service operates ten foreign

posts to provide a link between

United States citizens and businesses abroad and the domestic

tax program. The posts are

located in Bonn, London,

Manila, Mexico City, Ottawa,

Paris, Rome, Saigon, Sao Paulo,

and Tokyo.

Heading each post is a Revenue

Service Representative responsible for carrying out Service

compliance activities within a

designated geographical area.

Illustratively, he performs such

other duties as handling

requests for information from

foreign tax officials, serving as

liaison between United States

and foreign tax authorities in

resolving double taxation cases

or other inequities originating

under tax treaties, and furnishing information and assistance

to United States citizens who

have tax problems.

Audits Conducted

Abroad

In 1973, the Service again

expanded its overseas enforcement efforts by detailing teams

of revenue agents and tax auditors to foreign posts. Each

agent-auditor team is stationed

abroad for six months and is

replaced by another team to

ensure year-round compliance

coverage. The agents and auditors travel throughout the post

territory examining returns and

performing related work at the

post headquarters .

Worldwide

Assistance to U.S.

Taxpayer s

Twenty specially trained Service

personnel, including three Taxpayer Service Representatives

(TSR's), visited 102 cities in 60

countries where they assisted

36,371 persons in filing their

U.S . tax returns .

Tax seminars held in 57 foreign

cities broadened the bases of

the overseas tax assistance program . The group-oriented seminars are structured to allow time

for a discussion of tax rules,

questions and answers, and

preparation of returns .

The overseas taxpayer ass,stance team

travel, thro,ghout for,ign co,,t,i,s offering

ta, assist an Cc to Citifens residing abroad .

othce of International Operations Director

R~ L. Plate is located (standing) second

Ito

on t he let

1 . Assistant Director D . J .

Lantomo appears third from the left .

Approximately 900 military personnel received classroom income tax instruction at 13 military bases overseas, after which

they assisted numerous other

members of the military community . For the first time women

made up part of the IRS instructor team.

Cooperation With

the Possessions

The Service and the tax authorities of the Government of Puerto

Rico have recently begun to

carry out an Agreement of Coordination in Tax Administration . It

is hoped that similar agreements

will also be entered into with

Guam and American Samoa.

Such agreements provide for

mutual assistance and exchange

of information and tend to

improve tax administration and

tax compliance .

44

45
Withholding Tax

The chart below summarizes the

amounts of income paid to foreign persons and the tax withheld . The figures indicate the

magnitude of foreign investment

in United States stocks, bonds,

properties, patents, copyrights,

annuities, etc ., and the rising

trend of such investment during

the period of 1961 through 1971 .

46

Increase in Tax Withheld

from Payments to

Foreicm Persons of Treaty

and Non-treaty countries--

Calendar years 1961-1971

Millions of

Delta,.

1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971

Investment income from United

States sources (dividends, interest, rents, royalties, etc) derived

by nonresident aliens and foreign corporations is subject to

the withholding of U.S. tax . The

statutory rate is 30%, but a

lower rate specified in a tax

treaty may be applicable .

Tax withheld from payments to foreign persons of treaty and nontreaty

countries-calendar year 1971

Tax withheld by

domestic

withhold.

ing

Country Income, agents

Treaty Countries :

Australia 3,744 565

A stfia 2,087 239

Belgium 26,377 3,599

Former Belgian D/ 5

Territories 78 14

Canada 263.259 29 .189

Den mark 2.21 7 185

Finland 349 21

France 74,313 8,033

Federal Republic o f

Germany 61,896 6,291

Greece 1 .393 296

:,,.,:,and 1 272 48 2

13 :14. 1 384

J.p n

il.,326

4 :000

Luxembourg 19,139 4,192

61:1therla,ds 193 .293 14,912

N theflands Antilles 163,874 4,343

New Zealand 467 67

Norway 2,342 282

Pakistan 159 17

Sweden S.il-land 3to 14 .

Trinidad and Tobago 2,752

RePublic of South

Dollars in Thousand

Tax from Number of

foreign informagovern. tion docu.

ments ments

or with- filed by

holding 'Total tax withholdagents withheld ing agents

565 5.645

239 5.00 7

365 3,964 12,99 7

14 534

3,188 32,377 249,567

185 2,349

21 344

79 8.112 20,308

6,291 79.54 1

286 3,113

2 494 4.08 4

1

394 12 104

: 0 :

6

if 10 3 1

519 4 .

'It

2

.~4

7

422 15,334 10 .310

3 4,346 1,938

67 1,092

282 4 .976

17 !67

977 977 5.012

39 .049 27,000 66,049 44,323

758 758 309

U Africa 1 .561 399

nited Kingdom 350,960 36,958

U .K . c-s-s tornt . 3,364 681

Nontresty countries 88,710 Z2 .270

399 1,822

454 37,412 53,629

691 5 .074

22,270 105,383

Total 1,646,739 179,193 32 .032 211 .225 636,225

I

47
Foreign

Entertainers

and Athletes

The Service has recently taken

strong measures to improve

compliance among foreign

entertainers and athletes who

come to theU .S. temporarily for

the purpose of performing and

participating in sports events .

Recent studies uncovered

schemes to avoid tax . As a

result, the Service took added

enforcement steps to obtain

compliance with the 30% withholding required on amounts

paid to these individuals The

Immigration and Naturalization

Service aided compliance efforts

by supplying current information

on the influx and outgo of

aliens .

Tax Treaties

Tax treaty programs include

exchange of information to eliminate tax avoidance and periodic

meetings between competent

authorities to develop new avenues of cooperation, to eliminate

double taxation, and to clarify

application and interpretation of

treaties.

During 1973 Treasury renegotiated tax treaties with Belgium,

Japan, and Norway . In addition,

an income tax treaty with the

Soviet Union was signed and

awaits Senate ratification. k

49

48
Technical

Assistance in Tax

Administration

The Tax Administration Advisory

Staff provides technical assistance in tax administration to

foreign governments, state governments, and international organizations . Assistance is provided

in the following ways :

1 . assigning full-time resident

advisors for long terms ;

2 . assigning short-term advisors for specific purposes ;

3 . developing and presentin g

training programs in specific areas of tax administration ;

4. arranging discussions and

visits to IRS facilities

;

5. coordinating and supportIng other international tax

administration organizations .

International

Advisory

Program

The Internal Revenue International Advisory Program began

in 1963 under an agreement with

the Agency for International

Development, with five advisors

assigned to three countries . By

1967 (the peak year), 82 advisors were assigned in 21 countries. At the end of 1973, 24

advisors were assigned throughout Bolivia, Columbia, El Salvador, Guatemala, Guyana,

Jamaica, Paraguay, Trinidad and

Tobago, Uruguay, and Vietnam .

In 1973 advisory services

included audit, collection, data

processing, and public information . Internal support areas such

as organization and methods

studies, training, long-range

planning, and budgeting also

received attention.

Since the beginning of IRS

involvement in 1963, there has

been a marked increase in the

capability of the host countries

to develop tax administration

improvement programs . Early

IRS efforts were directed toward

training tax officials ; now, most

countries where advisory teams

have been assigned are operating full-time training programs .

Argentina, Brazil, and Chile

have since invited other Latin

American nations to participate

in their tax administration training programs .

The Inter-American Center for

Tax Administrators (CIAT),

formed with strong IRS support

in 1967, is now offering technical seminars for its 25 member

nations . The most recent seminar, held in Honduras in February 1973, was on Training Management . Other seminars have

featured the topics of ADP,

audit, collection, and property

tax administration.

CIAT also coordinates the

exchange of tax specialists

among its member nations . Several of these officials received

earlier training in the United

States .

Foreign Visitors

Study IRS Tax

Administration

Tax administration officials from

other governments frequently

visit IRS facilities to discuss

problems and techniques of

mutual interest. In 1973, 373

officials from 46 countries visited the United Staes, bringing

the total for the past ten years

to more than 3,300 visitors from

104 countries . About one-fourth

of the participants attended the

International Tax Administration

Training Series (INTAX) seminars offered by IRS for foreign

tax officials . This year, six seminars involved Middle Management, Supervisory Development,

Training Management, and

Public Relations .

While more than 70% of our visitors have been from the developing countries, an increasing

number of visits came from

other countries, such as Canada,

England, France, Germany, and

Japan . The topic in which they

were most interested was the

relationship between computer

methods and audit .

International

Organizations

The advisory staff assists a

number of international organizations that provide assistance

in tax administration . Staff

assistance includes furnishing

technical aid as well as locating

retired IRS employees who can

serve as consultants . Retirees

serve in Botswana, Africa, under an agency for International Development contact ; in

Panama, with the Interamerican

Center for Tax Administration ; in

Malaysia, with the International

Executive Service Corps ; in

Lebanon, with the Ford Foundation ; and in Ethiopia, with the

International Monetary Fund .

One retired IRS official received

the Silver Medal from the President of Singapore, the second

highest award that can be given

to a non-citizen . His accomplishments included design of a tax

fraud program which substantially improved voluntary compliance in Singapore .

Technical

Assistance to

States

Under the Intergovernmental

Personnel Act, IRS advisors now

provide technical assistance to

state administration agencies.

Advisor assignments, which

range from a few weeks to several months, contribute to

increased cooperation between

IRS and the state taxing authority . This year, the IRS assisted

Guam and Puerto Rico .

50 51
Legislative

an d

Legal

Activities

k",
Introduction Tax Court Civil Litigation

Litigation Activity

The Office of the Chief Counsel

performs the legal work of the

Internal Revenue Service . It renders opinions to Service officials

on substantive legal questions

and provides technical assistance to the Treasury Department's legislative program .

The Chief Counsel represents

the Commissioner in trying and

in helping to settle cases docketed in the Tax Court .

This chapter covers general

activities in the legal area .

In 1973, 8,430 statutory notices

prepared by District or Appellate

offices were reviewed before

issuance by attorneys in the

National Office or the field .

Agreement was reached with the

District Director or Appellate

Division on 7,248 cases .

New Tax Court cases received

totaled 9,624 and disposals numbered 8,796, leaving a pending

case load of 13,450 compared

with 12,622 cases at the end of

last year. Of the 8,796 cases disposed of during fiscal year 1973,

6,827 were settled, 1,018 were

dismissed or defaulted, and 951

were decided by the Tax Court

on the merits . Of the 6,82 7

Cases disposed of by settlement

cases settled, 4,431 were settled

in calendar status and 2,396 in

noncalendared status .

The Tax Court held 137 trial sessions (in addition to over 100

small case trial sessions) involving 6,355 docketed cases. Of

these 2,051 dockets or 32%

were settled ; 1,623 or 26% were

continued for settlement ; 810 or

13% were tried ; 73 or 1% were

defaulted or dismissed and 1,798

or B2% were continued generally.

Deficiencies

and

Number perta Ill. .

Fiscal of cases iss, .~ed

year disposed of (thousands)

1969 4.776 $329.938

1 970 5 .343 352,328

1

971 U117 1,11:197

1 972 6 73 0 129

1973 6,827 324 .06 9

Results in Tax Court cases

Deficiencies

and

Number' Pena Ities Fiscal of cases asserted

year disposed of (thousands)

1969 5.831 $393,699 1970

1971 76,564 400,092

.560 391.605

19 71 8,507 400,631

1973 8,796 390.821

Amounts

recovered Recover y

(thousands) percentage

$118,9/4 36 .06

105 .447 29 .93

100 .788 31.79

106,301 30.36

109,478 - 33.7 8

Amounts

recovered Recover y

(thousands) Percentage

$145,589 36 .98

130.724 32 .67

143,913 36 .75

132.994 33 .19

138,132 35 .34

The Tax Court entered 456 opinions involving 696 dockets. Of

the 456 opinions, 224 were

decided for the Government, 72

for the taxpayer, and 160 partially for the Government and

partially for the taxpayer . In

addition, the Tax Court entered

240 Summary Opinions involving

255 Small Tax Cases. Of these

opinions, 126 were decided for

the Government, 29 for the taxpayer, and 85 partially for the

Government and partially for the

taxpayer. The Court sustained

35 .09 percent of the total

deficiencies and penalties asserted by the Government .

Cases disposed of by trial I

The Court of Appeals rendered

132 opinions involving 218 dockets . Of these opinions, 104 were

decided for the Government, 19

for the taxpayer, and 9 partially

for the Government and partially

for the taxpayer.

Deficiencies

..it

Number penalties

Fiscal

at a- .

x-,t.d

yea, disposed of (thousands)

191, 783 $59,798

M. 763

1 971 806 ,, 9984N,

1972 880 41,131

1973 951 5B.132

Amounts

recovered R. ..ver y

(thousands) percentage

$22,888 38 .28

22

6 4 5 .4

Z1 :7579 401 .09

17,371 42 .23

20,401 35 .09

i Figures to, settled and tried cases do not add to overall totals. which include . small

number of ases dismissed .

Trial court case record (opinions rendered )

a CIU!, ''. ...

Dis let

Counts Tax Court

Action 1972 1973 ~ 1972 19731 1972 1973 1

Decided in Favor of Government 12 26 181 156 399 350

Decided in Favor of Taxpayer 41 9 95 BZ 113 101

Decided partially for the taxpayer

and partially for the Government 3 3 47 31 202 245

1 38 opi ons rendered involving 44 cases .

269 opinions rendered ovel,ing 322 raises .

696 opinions rei-do,ed involving 951 cases .

Refund Litigation

Division

In 1973, the Refund Litigation

Division closed 1,254 cases

leaving a total of 2,744 cases

pending at the end of the year.

In 1972 it had closed 1,442

cases.

The Supreme Court handed

down 9 decisions in tax refund

suits, sustaining the Government's position in 8 of the

cases. In the preceding year the

Supreme Court rendered three

decisions in refund suits sustaining the Government's position in

two of the cases.

Of the 116 opinions rendered by

the Courts of Appeal (involving

146 cases), 74 favored the Government, 35 favored the taxpayer, and 7 decisions partially

favored the Government .

54

1 55
The amount involved in pending

refund litigation cases increased

to $590 .5 million, from $529.5

million at the start of the year.

This increase resulted from the

receipt of new cases involving

$167.7 million and the disposal

of cases involving $106 .6 million .

The $167 .7 million in new cases

compares to $140.2 mi Ilion in

the preceding year. The 1,254

refund suits dispoFed of during

the year resulted in refunds of

$50,694,000 consisting of

$3,801,000 refunded pursuant to

Court of Claims judgments,

$16,870,000 refunded pursuant

to district court judgments, and

$30,023,000 refunded as a result

of settlements . In these refund

suits, the Government defended

its position successfully with

respect to $55,973,000 of the

amounts claimed for refund.

(Comparable statistics for the

last 5 fiscal years appear in the

table at right .

t,

Tax in litigatio n

(in thousands of dollars)

Status

Tax Court Refund

litigatio n

Taxes and Over- refund

Total penalties payments suit s

Pending July 1, 1972 $2.298,234 $1,578,913 $189,912 $529 .509

Received 1,151,477 846 .644 137 .130 167,703

Disposed of 545 .162 390,821 47,674 ID6,667

Pending June 30, 1973 2.904,549 2 .034 .736 279,268 590,545

Amount saved 238,599 138,132 44 .494 55,973

Results in refund suits (Settlements and trials combined)

(Amounts are in thousands of dollars)

Amounts

Amdolunt in saved-not

Number of saute refunded Percentage

cases (Thousand (Thousand at

Fiscal Year disposed of dollars) dollars) -funde d

Ali refund suits

196

9

1970

1 "'W,

1973

1 :1~3 $120 .059 $72 .670 60 .53

1 16 84.356 50.262 59.58

1 .091 1W223 48 .323 45.49

~41 134 417 85,944 ~,4 106 63 .9 3 :667 55,973 52 .4 7,

District Courts

196 1

.11 97 56 992

58.45

1 970 0,11 0 :21~ 26:401

5'

. 61

1 91, "1 63

.916 39~841 62.4~

.11 l' .2

85

.629 51.916 60.62

1973 1,076 79,967 44,733 55.94

1969 169 Court of Claims 21 .111 11 .111 69.50

1171 0, 3, ' 11 23 6

7

.96

1" 1 153

1972 150

42 407 :482 2 .00

48 :788 34'.028 60,74

1973 178 26.700 11,240 42.

0

9 9

General Litigation

Legal Services

General litigation cases have

reached an all-time high . In 1973

14,906 cases were received in

comparison with 13,855 in 1972 .

Disposals have reached from

13,300 cases in 1972 to 14,203 in

1973. The number of cases

pending at the end of the year

was 8,132, an increase of 703

cases over 1972 . Field reciepts

for 1972 included 6,802 cases in

litigation and 7,434 noncourt

cases compared to 1972 field

receipts of 6,996 cases in litigation and 6,336 noncourt cases'

National office receipts for the

year included 296 cases in litigation and 374 noncourt cases,

compared with 1972 figures of

279 and 246, respectively . Field

disposals for 1973 were 6,405

cases in litigation and 7,242

noncourt cases compared to

1972 disposals of 6,698 cases in

litigation and 6,226 noncourt

cases . National office disposals

increased over the 1972 disposals, 201 cases in litigation and

355 noncourt cases in 1973

compared to 169 cases in litigation and 209 noncourt cases in

1972 . For detailed statistics on

case receipts and disposals, see

tables 14 through 21 on page

141 .

Selected general litigation cases

are summarized on page 113.

While summons cases continue

as a major area of litigation, the

following new areas of general

litigation are developing :

1 . Actions brought under the

Freedom of Information

Act, 5 U .S.C. § 522 ;

2 . Injunctions by taxpayers

seeking to require an

exemption under Code

§ 501 (c) (3), to change

the taxpayer's ruling or

regulation .

3. Suits by third persons

seeking to require the

Commissioner to deny

exemptions to organizations, usually on the basis

of race or sex discrimination .

Tax

CASE DISPOSALS BY OFFICE OF CHIEF COUNSEL

NUMBER OF CASE S

13 .300

14,203

a

General

Litigation

Service attorneys furnished

advice on offers in compromise,

disclosure of information, noncollection matters, and noncourt

matters arising under the Freedom of Information Act (5 U .S .C .

§ 522) . General litigation lawyers participated in regional

training sessions in the advanced technical training program for revenue officers, and in

special procedures seminars.

They also furnished legal assistance and made suggestions to

the service centers and district

offices .

TOTALS

1972 29,4117

1973 30,37 3

3

.336 2,88 1

1,385 1 .442

1,254

C,i.ir. 1

Court To.

Litigation

1 .15 1

R.l.rd Stabilization Othe,

Ling.ti432

57 56 528-46R 0 - 73

i
I

Interpretative

Activities

In addition to reviewing all revenue rulings before publication,

attorneys of the Chief Counsel's

Office participated with technical

personnel of the Service in solving the more difficult interpretative problems arising in the past

fiscal year . The following examples illustrate some problems

which had significant impact or

received much public attention .

As in the past, many issues

arose in the corporate reorganization area . In particular, the

Interpretative Division assisted

in preparing two Revenue Rulings. The first of these, Rev. Rul .

72-522, 1972-44 I .R.B . 15, holds

that the purchase by the acquiring corporation of authorized

but unissued stock of the

acquired corporation did not

disqualify an otherwise valid

reorganization . The second, Rev.

Rul, 73-54, 1973-5

holds that, if an acquiring corpo- I .R.B. 10'

ration paid or assumed bona

fide expenses of a reorganization otherwise due from the acquired corporation or its shareholders, those payments did not

disqualify the reorganization under Code §§ 368(a)(1)(B) or (C) .

In other corporate cases the

Service ruled that a corporation's distribution to its shareholders of stock in ano ther corporation resulted in no recognized gain or to ss to the

shareholders under Code § 355,

even though less than half o f

58

the distributing corporation's

assets were devoted to the

active conduct of a trade or

business, in view of other circumstances surrounding the

transfer . Rev. Put. 73-44,

1972-46 I.R .B. 39. A number of

questions arising out of the

"reverse acquisition" rule of the

consolidated returns regulations

were also considered . See Rev .

Rul. 72-322, 1972-26 I .R .B . 14,

for example . In another interesting case, Rev. Rul . 73-116,

1973-10 I .R .B. 10, held that

expenses incurred by a savings

and loan association in selling

property acquired through foreclosure of mortgages were to be

taken into account in computing

its gains or losses on the sales,

rather than deducted as expenses under Code § 162 .

In the partnership area, the

Chief Counsel's Office aided the

Service ih preparing Rev . Proc .

72-51, 1972-46 I.R.B . 47, which

explains when a partnership will

be allowed to adopt a taxable

year other than that 0 f all its

principal partners and how the

adjustment shall be made. The

Rev. Proc. also applies to electing small businesses ("Subchapter S" corporations) .

Much attention was given to

estate tax cases raising questions about the scope of Code

§ 2036 in light of the Supreme

Court's decision in United States

v . Byrum, 408 U .S . 125 (1972).

Chief Counsel personnel

assisted by providing explanations and analyses of the decision and its impact.

In the foreign tax area, the Service issued two significant rulings

on the effect of the allocation of

income under Code § 482 on

the foreign tax credit allowed

under Code § 901 . In Rev. Rul .

72-370, 1972-31 I .R .B . 8, the foreign tax credit was not allowed

to a parent corporation when it

was determined that a portion of

its subsidiary's income should

have been allocated to it and

that, if the income had been so

allocated, the subsidiary would

not have had to pay the foreign

tax . In Rev. Rul . 72-371, 1972-31

I .R .B . 8, it was held that if a

parent corporation would have

been subject to a foreign tax on

royalty income allocated to it

under Code § 482, but actually

received by its foreign subsidiary, and if the subsidiary paid

taxes on the income to a foreign

country, the parent corporation

would be allowed a foreign tax

credit to the extent of the taxes

paid by the subsidiary on that

income .

Tax Legislation

Enacted

Congress enacted a number of

laws relating to tax matters . The

Federal-State Tax Collection Act

of 1972, usually called the "piggyback tax" act, provides for

the adoption of a voluntary

collection system under which

the Federal Government collects

State individual income taxes for

those States which elect to join

the collection system. A detailed

explanation of this new law

appears on page 62 . Also of

considerable significance was

the enactment of Public Law

92-603, which increases social

security and self-employment

taxes for 1973, permits optional

determination of self-employment

earnings from nonfarm self-employment after 1972, and permits

elective social security coverage

for members of religious orders

who have taken a vow of poverty.

Other public laws relating to tax

matters included :

Public Law 92-326, enacted July

1, 1972, extends the disaster

loss period under Code section

165 (h) and increases tax rates

and earnings base for social

security tax purposes.

Public Law 92-418, enacted

August 29, 1972, places veterans' organizations in a special

category of exempt organizations and expands the disaster

loss rule .

Public Law 92-580, enacted

October 27, 1972, provides that

when a State or local sales tax

rate on motor vehicles is higher

than the~general sales tax rate,

then that part of the tax equal to

the general sales tax rate may

be deducted .

Public Law 93-317, enacted April

10, 1973, extends the interest

equalization tax through fiscal

1974 .

Tax Legislation

Pending

During the Spring of 1973, the

House Committee on Ways and

Means conducted extensive

hearings on tax reform . Secretary George P. Shultz appeared

before the Committee to present

the Administration's proposals

for tax change, including legislative suggestions in the following

areas : (1) minimum taxable

income ; (2) limitation on artificial accounting losses ; (3) tax

simplification : (4) property tax

credit for the elderly ; (5) tuition

credit for nonpublic schools ; (6)

exploratory drilling credit ; (7)

municipal bonds ; (8) arbitrage

bonds ; (9) tax return preparers ;

(10) foreign tax haven

'

manufacturing corporations ; and (11)

recovery of foreign losses. The

review of revenue laws by the

Committee was still pending at

the close of the year.

Among the tax bills awaiting

action by Congress at the end

of the year were the following :

H .R . 3150, to allow disabled persons to deduct transportation

expenses to and from work and

to provide an additional exemption for disabled taxpayers .

H.R . 3152, to liberalize the charitable contribution treatment of

copyrights, artistic compositions,

and certain letters and memorandums.

H.R. 7064, to require preparers

of income tax returns to report

information to the Internal Revenue Service and to prohibit

preparation of returns by a

person convicted of preparing a

fraudulent return .

H .R . 7157, to set minimum participation and vesting standards

for pension and profit-sharing

retirement plans, to allow

deductions for employee contributions, to increase deduction

limits for contributions by selfemployed persons and shareholders of electing small business corporations, and to

impose an excise tax on prohibited transactions.

59
Plannin g

Activities
Planning

Activities

Recent legislation on revenue

sharing and Federal collection

of State income tax played a

key role in the Service's planning activities in 1973 .

Service planners assisted the

Office of the Secretary in several legislative proposals, the

most important relating to measures to curb abuses among tax

return preparers and to 'reform

in estate and gift taxes, employment taxes, and employee benefits (pension plans) . The Service

also submitted recommen ations

for alleviating administrative

problems in enforcing existing

law .

In the second session, Congress

enacted nine bills with varying

degrees of impact on the Internal Revenue Code . Among these

was Public Law 92-512, which

included the State and Local

Fiscal Assistance Act of 1972

establishing the general revenue

sharing program, and the Federal-State Tax Collection Act of

1972 which authorized Federa~

collection of State individ u a

income taxes .

Revenue Sharing

The State and Local Fiscal

Assistance Act of 1972 authorized the inclusion of information

about place of residence on

individual tax returns . The Service provided the Bureau of the

Census with certain tax return

information, coded by taxpayer

place of residence, for estimating population and per capita

income for all governmental

units eligible for revenue sharing. These are two factors used

to determine amounts of revenue shared .

Federal Collection of

State Individual

IncomeTaxes

The Federal-State Tax Collection

Act of 1972 authorizes the Service to enter into agreements

with States to collect State individual income taxes ii the State

conforms its individual income

tax law closely to Federal tax

law. The procedures would also

require redesign of some IRS

systems, modification of tax

returns and instructions, and

changes in regulations and

master file system.

Federal collection of State individual income taxes can go into

effect only after two or more

States (representing 5 percent

or more of the Federal individual

income tax returns) request I

*

he

Federal government to collect

their income taxes. No requests

had been made by the end of

the fiscal year.

Tax Return Preparers

In 1973, the Service assisted the

Office of the Secretary in legislative proposals to curb abuses

by tax return preparers . In genera] these proposals call for

civil penalties for preparers who

knowingly understate tax liability, injunctions against preparers

who are found to prepare inaccurate returns, and information

returns to identify the employees

of preparer offices .

Other Federal-State

Cooperation

Formal agreements between the

Service and the States provide

for reciprocal exchange of tax

information . The Service has .

agreements with 48 states, the

District of Columbia, and Puerto

Rico . Two-thirds of these agreements now conform to the

model which reflects recent

changes in Federal and State .

tax administration .

Tax Administrators in 39 States,

the District of Columbia, and

Puerto Rico requested and

received magnetic tapes containing standard data elements

from the Individual Master File

for tax year 1971 . This information is used by the States for

improving compliance with State

tax laws .

In 1973 the Service developed a

program to provide States with

Federal gift tax information on

magnetic tapes and provided the

State of New York with training

material .

Single Wage Reporting Long-Range Planning

System System

The Office of Management and

Budget directed the Departments of the Treasury and

Health, Education and Welfare

to design a system which would

eliminate the present employer

quarterly wage reporting requirements and would use the

annual Form W-2, Wage and

Tax Statement, to determine

social security program coverage and benefits and to provide

information for tax enforcement.

If legislation is enacted, the

wage reporting burden on

employers will be substantially

reduced. Both the Service and

the Social Security Administration will benefit from reducing

the volume of reports .

The Long-Range Plan constitutes

a basic statement of goals and

planned work accomplishments

for the next five years . It

included projections of the

nature and size of the tax

administration job ahead and

the programs needed to meet

Service objectives . It also estimates how many people, how

much money and what equipment will be needed to do the

job .

Economic forecasts indicate that

by the end of this decade the

U .S . economy will be nearing a

GNP level'oi two trillion dollars,

and gross federal tax collections

are expected to exceed $400 billion .

Service Productivity

The Service is participating 'in

the measurement of productivity

in the Federal sector . The purpose of this study, which is

spearheaded by representatives

of the Civil Service Commission,

General Accounting Office, and

Office of Management and

Budget, is to aid budget and

management planning.

Service planners must devise

ways in which tax administration

can keep pace with this growth

provide taxpayers the assistance',

they need to comply with tax

laws, and assure vigorous

enforcement programs .

The Tax Models

in 1973

Originally developed 10 years

ago to meet Treasury's need for

timely estimates of the revenue

affect of proposed tax legislation, the tax models continue to

be valuable tools for economic

planning .

Each model consists of a set of

generalized computer programs

used with specially formatted

data files comprising records in

the Statistics of Income files .

Statistical information is generated from a model file by using

instruction cards designed by

statisticians and economists .

This year the service developed

a State Tax Model to gain data

estimates concerning the Federal-State Tax Collection Act of

1972. The State Tax Model consists of a sample of over 276,000

Forms 1040 filed for 1970, sorted

into .segments for each state .

62 63
Office of Industrial

Economic s

The Service established the

Asset Depreciation Range Information System (ADRIS) during

the year to collate and analyze

information on capital asset

acquisition, replacement, and

retirement reported on income

tax returns of taxpayers electing

the Asset Depreciation Range

System .

Because of the nature of the

work performed, the Office of

Industrial Economics was transferred from IRS to Treasury at

the close of the fiscal year .

Statistics of Income

Highlight s

Estimates for business and individual returns published in the

annual Statistics of Income

reports reflected the continued

growth in the U .S. economy.

Corporate and noncorporalle

. Dus

inesses reported aim ost $2.1

trillion in receipts. Corporations

accounted for 83 percent ($1 .7

trillion) of 1971 gross income

receipts and showed net income

of $79 billion . In the unincorporated area, proprietorships had

receipts of $255 billion and profits of $34 billion ; partnerships

had receipts of $98 billion and

profits of $9 .1 billion.

Individual taxpayers reported

adjusted gross incorne of $674

billion on 1971 returns, up 6 .7

percent from 1970. Taxable

income was $414 billion, after

allowing for personal exemptions and deductions.

The table on the next page

focuses on the frequency and

amount of personal deductions

and exemptions claimed on individual income tax returns . The

total amount of deductions and

exemptions for 1971 was 38 percent greater than that for 1967.

Chart A pictures how the returns

that individuals filed for 1971

and the tax liability they

reported are distributed in terms

of the size of tax .

Statistics of Income publications

can be obtained from the Superintendent of Documents, U .S.

Government Printing Office,

Washington, D .C . 20402.

Individual Income Tax Returns:

Number of returns, personal deductions and exemptions

(All figures are estimates based on samples)

Item 1967

All individual returns . total 71,652

Standard deduction returns 1 41,877 itemized deduction returns 29,77 4

Number of exemptions 198 .03 6

Total Personal deductions and exemptions 200,548

Amount of exemptions 118 .822

Amount of standard deductions 22,103 Amount of itemized deductions 59,6Z3

Includes returns with no adjusted gross income .

$500 under $1,GM

1971

74,601

43,924

30,677

203,93 6

277,431

137 .598

48,153

91 .680

CHART A . Number of Returns and Amount of Tax, Percent Distribution by Size of Tax Liability, 1971

(Percentages computed from estimates based on samples)

PERCENT OF RETURNS TAX LIA131LITY

19 .7 None

25.4 $1 under S500

18.9

33.7

40% 30% 20% 10%

9M

income yea,

1969

(Thousands)

1970

73,729 75,834 74,280

41 .698 40.919 38,849

32 .030 34,915 35,430

201,298 206,197 2D4 .126

(million dollars )

212,024 225 .555 248,080

120,773 123,718 127,531

22,074 21 .627 32 .371

69,177 80,210 88,178

5. 0

$1,000 under $5,000

2 .2 $5 .000 under $50,DOO

D.1 S50,000 or mom 5 .8

PERCENT OF TA X

12.2

21 .1

10% 20% 30% 40% 50%

55.9

64 65
Returns Filed

Projections

Projections of returns filed serve

as a basis for planning activities

throughout the Service. The

Service revises the projections

each year to include changes in

tax law and to incorporate the

most recent thinking on economic and demographic expectations .

By 1980, the Gross National

Product in current dollars is

expected to increase from its

1972 level of $1,150 billion to

$2,0.90 billion . During the same

period, total employment is

expected to increase from 84 to

97 million . These increases represent a growth of 15 percent in

employment and 82 percent in

GNP. This is expected to have

its impact on the number of

returns to be filed . Between

1972 and 1980, the total number

of tax returns is expected to

increase by about 21 million, or

19 percent .

In this same period, returns of

individuals with higher adjusted

gross income (AGI over $10,000

and taxpayers filing fiduciary,

corporation, estate, gift, and

exempt organization returns are

expected to increase at a higher

Selected Types of Returns Filed in 1972, and Projected for '1974, 1975

and 1980, by Calendar Year

(Thousands )

Total Returns

Individ,a

F -I1040A

Form 1040

AG :

under $10 .1100

AG $10.000 and over

Other individual

Actu.1

1972 1174

112,071 120,331

75 .800 ": E97

- 22 163

71

48 :~Ilt "I" 87 2S) ~14

26,034 29,496

779 884

Fiduciary

Partnership

Corporation

Forms 1120, 1120 Specie

16

, tota l

Assets under $50 .00

A: ::" : 110~ni)'l under $1 million

Other corporatio A S~ 11"' or more n

Employment

Estate and gift

Exempt organization

Excise

Other

1 .294 1,473

1,036 1,046

1,053 2 .011

1,549 1,65 9

675 712

766 828

log 119 304 1.

21,933 23,950

419 1114

549 617

770 116 0

8,417 8,263

than average rate . Conversely,

decreases are expected from

individuals with lower income

and from taxpayers filing excise

returns. The excise return

decrease is expected because

of the scheduled expiration of

several taxes before 1980 . The

expected decrease in Form

1040A and Form 1040 returns

with lower income and the

increase in returns with higher

income is a continuation of the

general trend toward more complex returns . This trend is also

evident in the corporation asset

projections.

Percent

Projected Change

1975 1980 1972-1980

121,987 133,253 18 . 9

83,003 92,646 22.2

21 .593 20.963 NA

60 513 70 699 NA

28 : 020 24:966 NA

32 .493 45,733 NA

891 994 26 . 3

1,541 2,004 54.9

1,052 1,085 4.7

2,063 2,368 27.8

1,690 1,900 22.

7

724 Sao 18.5

844 953 24.4

12' 147

3721 itlig 36 _'

5,

. 3

24 .016 24.434 11 .4

430 531 26.7

650 829 51.0

$52 385 -50.

0

8,380 8,971 6.6

NOTE: The introduction of Form 1040A in 1973 makes percent changes for certain individual sub-strata --comparable.

I Includes Forms 7, 8, 11, 13, 4705, 4706, 4707, 4708, 1040ES, 7004, 7005, 2438 and 1042.

Taxpayer Compliance

Measurement Program

The Taxpayer Compliance Measurement Program (TCMP) uses

statistical techniques to determine how well taxpayers comply

with tax laws. TCMP provides

data that enable the Service to

allocate audit resources most

efficiently among classes of taxpayers and to develop the most

effective delinquent accounts

and returns program.

TCMP information is also used to

develop and update formulas for

computer selection for auditing

returns with the highest probebility of tax change . During

1973, new formulas, based on

TCMP survey of corporations

with assets of less than $1 million, have been used in screening small corporate income tax

returns for audit .

Internal Revenue

Manual

The Service sets forth its policies and procedures in the Internal Revenue Manual . To give

greater guidance to the public

and in accordance with the

Freedom of Information Act, the

Manual is being made available

to the public . Certain material

which should not be publicly

disclosed is being removed .

Technical Reference

Information (TRI )

The Service is continuing the

test of the TRI system with an

expanded data base from the

U .S . Code, the Cumulative Bulletin, Index Digest Supplements,

and selected court decisions .

TRI is designed to provide

almost instant computer access

to technical and legal texts necessary to interpret or apply tax

laws to specific taxpayer ciruumstances .

Automated Preparation of Tax Return s

The Service tested Mini-Computer systems to assist field personnel in preparing short Form

1040A returns for taxpayers .

These systems operated in

walk-in facilities in Boston,

Brooklyn, Philadelphia, and

Washington during the filing

season. An evaluation is under

way to determine whether this

service should be continued or

expanded to other cities.

Executive Resources

System

The Service successfully tested

a computerized system for Identifying candidates for executive pos

itions . On-line video terminals provide management with

means for quickly identifying

persons who should be considered for high-level positions .

This procedure removes much of

the time-consuming drudgery

from the selection process .

66 67
Internal

Management

an d

Support

Activities
Inspection

Programs

Designed to

Maintain Integrity

In IRS

Through internal audit and Internal security programs, Service

managers are assisted in maintaining high standards of integrity and efficiency.

The internal Audit Division

reviews Service operations to be

sure they are carried out properly and efficiently.

The Internal Security Division

conducts background investigation on applicants and investigates complaints of misconduct

or irregularities concerning

Service employees. The division

also investigates persons outside the Service who attempt to

bribe or otherwise corrupt Service employees.

In March 1972 the Internal Security Division assumed jurisdiction over assaults and threats

against IRS employees . Employees have reported 488 assaults

or threat complaints, resulting in

53 prosecutions and 17 convictions .

Internal Audit

Provides

Independent

Reviews of

Service Operations

Wide Scope of

Activities

The Internal Audit Division independently reviews all phases of

Service activities and assists the

Commissioner and management

in maintaining efficient tax

administration . Internal Audit

devotes about 85% of its time to

activities directly related to the

collection of revenues and the

enforcement of tax laws. Various

auditing techniques are used to

detect problems stemming from

integrity or program weaknesses. Information indicating

breaches of integrity is referred

to Internal Security for investigation.

Ralph J. D'Amalo (right), Brooklyn Revenue

Agen received a so clef -1d from

DoP1 Commissioner Hadesu for his role

in repo ning six bribery attempts over a

per i ad of three years .

The Internal Audit program is

accomplished by periodically

auditing organizational segments, auditing new or revised

programs and procedures, and

completing integrity investigations . Facts developed during

the audits are reported to appropriate management officials who

are responsible for evaluating

the findings and taking appropriate corrective actions . Such

actions are followed up by the

various echelons of management.

Service investigators issued 561

regular internal audit reports in

1973 . Additional reports also

were issued covering integrity

matters, special reviews, and

imprest fund audits . At the end

of the year, 133 audits were in

process. The accompanying

charts show the significant

increase in reports issued to

management during the past

three fiscal years . This increase

resulted primarily from changes

in auditing and reporting techniques discussed in the following paragraphs .

Significant Improvements and Savings

Actions by managment on problem areas detected during internal audits result in increased

operating efficiency, strengthened

internal controls, and improved

taxpayer service. In' addition,

they generally foster a climate

of integrity and responsibility

within the Service. Many improvements and long-term benefits cannot be measured monetairly . In areas that can be

measured savings and additional

revenue have averaged over $30

million per year in recent years

and for fiscal year 1973 exceed

$59 million. .

Internal Audit

Reports Issued

Total

On-lin e

250

331

50 1

705

1971 197 1973

Fi-I Year

Changing Audit

Methods

On-line audits provide immediate

coverage of Service programs

that are being newly implemented, are undergoing substantial revision, or are of immediate

concern to management . These

audits of current activity identify

problems as they occur rather

than after the fact. Findings are

reported to appropriate managers for prompt corrective action .

The project audit approach concentrates the limited manpower

available on critical

0

perations

in several offices rather than

solely on a single organization.

This aporoach permits greater

flexibility in the audits and indepth reviews . Maximum use of

pre-audit analyses and survey

techniques is made to identify

the problem areas warranting

in-depth coverage .

Internal auditors stationed at

regional service centers examine

automatic data processing activities on a continuing basis to

ensure timely correction of

problems . Specially designed

computer programs are used in

the audits . Significant problems,

including fraudulent refund

schemes, have been brought to

the attention of management

through these audits.

Violations of Tax Laws

Discovered

Internal audits and integrity

investigations often uncover

income tax evasion or other tax

law violations . To illustrate, a

tax preparer was arrested and

charged with preparing false

income tax returns after internal

auditors found that 131 tax

returns prepared by this individual contained improper itemized

deductions . Refunds claimed on

the returns exceeded $50,000. In

a similar case, a tax return preparer was arrested, and examinations of 40 of his clients'

returns resulted in tax deficiencies of over $36,000.

In another region, two false

refund schemes were disclosed

by internal audit review of early

filed returns . In one case, the

names and social security numbers of other taxpayers were

used in an attempt to obtain 32

false refunds totaling over

$16,000 . The perpetrator was

identified and indicted. In the

other case, three false refunds

totaling $7,300 were detected .

The operator of this scheme was

found to be in jail for armed

robbery . Such cases, if integrity

is not involved, are referred to

the Intelligence Division for

investigation and prosecution.

Internal Audit works closely

with intelligence on such referrals.

70 71
As a result of a fraudulent

refu nd scheme discovered in

one region, all income tax

returns with overpayments

exceeding a specified amount

were given a special review . To

date, erroneous refunds in

excess of $320,000 have been

prevented by this review. Managers at all service centers were

alerted to the types of taxpayer

and processing errors which

occurred in these cases .

72

Assistance to

Other Agencie

s

Since 1962, the Service! hai provided internal audit assistance

to the Virgin Islands Tax Division

and to the Government of Guam .

This year, assistance to Guam

consisted of an audit of the

General Taxes Division a

quested by Guam's Direcior of

Revenue and Taxation.

Internal Security

Division Activities

Extensive in Scope

In fiscal year 1973, 204 employees reported possible bribery

attempts, resulting in 62 arrests

or indictments.

Since 1961 Service employees

have reported 1,291 bribery

attempts . One of every four

instances resulted in prosecution action . During the twelveyear period, bribery investigations resulted in 345 arrests or

indictments and 244 convictions

or guilty pleas . At the end of

this fiscal year, 46 persons

charged with attempted bribery

awaited trial. Bribes offered,

solicited, or paid during the

fiscal year ranged from $50 to

$25,000 .

The following cases show that

attempts to bribe follow no particular location or occupational

patterns . A New York Postal Service

employee and his representative

offered a bribe to a Revenue

Agent for a favorable audit. Both

defendants pled guilty and were

sentenced to six months in

prison and two years probation . A California physician offered a

Revenue Agent a parcel of land

in exchange for reducing a tax

deficiency and was subsequently

indicted for bribery . A New York CPA was fined

$5,000 and sentenced to two

years' probation for attempting

to bribe a Revenue Agent . A Maryland taxpayer was fined

$1,000 for attempting to bribe a

Revenue Agent. A Michigan taxpayer was

arrested by Detroit Inspectors

for offering a Revenue Agent a

$500 bribe in return for a "no

change" report . A Philadelphia taxpayer, arrested

for bribery, had offered $1,000 to

a Revenue Officer in an effort to

forestall collection of withholding

tax liabilities. A New Jersey taxpayer, who

pled guilty to offering a $500

bribe to a Special Agent, was

sentenced to three months in

prison, 15 months suspended

sentence, and two years' probation.

Employes have continued to be effective

I, opposing ch-Himpas to 'he Integrity of

the Service through bit beryF

missioner Walters

;ff

I.

above

,,ad nl' of. Now I a. Picat - p:c emany in

Yer, City with recipients of Integrity aw aide I. the reporting of bribery attempts.

628-468 0 - 73 - 1

;

An Illinois taxpayer attempted to

give a Revenue Agent a color

TV in exchange for reducing the

Proposed tax adjustments . A

Grand Jury returned an indictment charging him with bribery . A New Jersey construction

executive who offered a Special

Agent $100,000 to "fix" a tax

case pled guilty and was fined

$61,000 and sentenced to three

months in prison . A Chicago taxpayer who pled gu t'Ity to offering a $2,000 bribe

to a Special Agent received a

one-year suspended sentence

and a fine of S3,000 .

Organized Crime

Inf luences

During the past four years, there

have been extensive investigations of possible corruptive

influence by organized crime

upon the Service. One case

involved 90 persons, of whom 37

were IRS employees or former

employees and 21 were organized crime figures . To date

there have been 25 indictments

and 21 convictions. The 21 persons convicted include 7 organized crime figures, 12 present

or former employees, and 2 tax

practitioners.

In this case, one organized

crime overlord's first trial for

attempted bribery ended In a

hung jury and the second in

acquittal . The investigation of a

subsequent allegation of conspiracy to tamper with the jury

during the second trial and

obstruction of justice resulted In

a successful prosecution and a

sentence of five years in prison

plus a $10,000 fine .

In another case, ten individuals

identified with organized crime

were indicted on bribery and

conspiracy charges . This investigation which extended over a

period of two years, involved the

use of innovative investigative

techniques for the protection of

five cooperating Service employees . During the investigation,

two businessmen erroneously

identified as organized crime

suspects in this case were slain

in a restaurant by the under

world . None of the suspects

were arrested on the same date,

and one who fled surrendered

himself to Internal Security

Inspectors five months later . 7

3

t_;
Convictions Criminal Action Case Closure Rate

Continue Remains Constant Climbs to

Upward Trend Time Hig

All

h

Comparison of convictions for

the past seven fiscal years

appears in the table below . Of a

total of 77 convictions, 61 preferred to plead guilty rather than

go to trial .

Con,icted

Pleaded F.-I Non.

Guilty Employ ... Employees Total

F 'Y . :67 14

F 68 26

F'Y : '69 1

' Y

F-Y

. '70 11

F

1

22

F Y .- :' I

.

F:' 72

.Y . '73 16

Total 119

19

19

302

4'1

6 1

258

13

20

16

13

1 2

103

33IS

26

26

54

6 5

Z74

33

Iti 31

1171

7 7

377

During the fiscal year, Service

investigators arrested or indicted 121 individuals, including

12 employees or former employees and 109 taxpayes, tax practitioners, or others. Comparison

of prosecutive actions initiated

by the Service during the past

four years appears in the table

.below.

At ihe end of the year, 88 taxpayers and 14 present or former

employees awaited trial or possible indictment .

Prosecution actions covered

such charges as embezzlement,

disclosure of confidential tax

information, attempted bribery,

solicitation of a bribe, conspir-

?icy to defraud the Government,

subscribing to false returns,

assaults and threats against IRS

employees, and obstruction of

justice.

A few examples follow :

An employee who fled to Australia was extradicted, and was

subsequently indicted by a Federal Grand Jury for impersonation, embezzlement, bribery, and

failure to deposit Government

funds . He entered a plea of

guilty, and was sentenced in

United States District Court, Los

Angeles, to two years in prison

with 18 months suspended and

five years probation on each of

two counts. He was also ordered

to make restitution of $4,800 to

the Government .

An employee at Memphis was

indicated by a Federal Grand

Jury on three counts of embezzlement; and her husband was

indicated on three counts of

aiding and abetting the embezzlement.

An employee at Atlanta who

stole and cashed two money

orders which had been sent to

the IRS in payment of taxes was

indicted by the Federal Grand

Jury on two counts of embezzlement. The employee entered a

plea of nolo contendere and was

sentenced to two years' imprisonment, sentence suspended,

and placed on two years' probation .

PERSONS INVOLVED IN ATTEMPTS

TO CORRUPT IRS

Employees or former employees of

IRS

Taxpayers, tax practitioners, other s

TOTAL

A Newark employee was convicted on conspiracy and falsifying audit reports, sentenced to

three years' probation, and fined

$500 .

An IRS warehouseman in San

Francisco who was arrested for

embezzlement, theft, and sale of

Government property entered a

plea of guilty to State charges

made in connection with drugs

found in his possession when

arrested . He also pled guilty to

the Federal theft charges.

A Philadelphia employee was

the subject of an Information

filed in U .S . District Court as a

result of unlawful disclosure Of

income tax information to a

p

riVale detective .

Number arrested or indicted TOTAL

1970 1971 1972 197 3

21 12 12 12 57

37 54 65 109 265

58 66 77 121 372

The Internal Security Division

completed 19,654 investigations

during fiscal year 1973 as compared to 13,868 during fiscal

year 1972, an increase of 41 .7% .

In addition, singular and multiple

police record searches were

conducted on 14,670 persons

considered for temporary shortterm appointments or for positions created for special economic and educational programs .

The vast majority of investigations relating to alleged acts of

impropriety by Service personnel result in exoneration of the

employee. The employees who

become involved in improper

behavior or unlawful actions

constitute a very small percentage of the IRS employment

force .

The following tabulation shows

the types of investigations completed during the past two years

and related dispositions :

74 75
Type of Investigation and Action Im 1973

Total 13 .868 19,6S4

Personnel Investigations

Number of cases closed. total 10.697 15.M

Character and Security Investigations 7 .877 11.672

Conduct Investigations 618 1 034

Special Inquiries 2,202 2:487

Actions taken by Service management officials as a result

of Personnel investigation s

Rejected for Employment 296 2"

Clearance and closed without action Letters on

Conduct Investigations 174 186

Disciplinary actions, total 714 8n

Separations . total 211 235

Bribery, extortion, or collusion 2 1

Embe-zlement, at theft of Government fund s

or property 4 7

Failure of employee to pay proper tax 9 26

Falsification or distortion of Governmen t

reports, r :cords, etc. 101 91

Una uthoriz d out ;ide activity 9 s

Failure to discharge duties properly 7 10

Divulgence of confidential information 3

Acceptance of

I.. . or gratuities

1 2

Ratusat to cooperate in official investigation 0 3

Personal and other misconduct 75 96

Suspension from

q

uty and

pay

34 35

Reprimands, warnings, or demotions 469 56111

Investigations completed with favorable results 9,513 13,923

Other Investigations

Number of cases closed, total 3 .171 4 .461

A

Disclosure 2

sault 17 411

53

Applications for admission to practice before the J .R .S . 2.178 1,Z37

Cho rges against Attomeys . CPA's, and Enrollees 78 74

Federal Tort Claims ISO . IW

Bribery 130 173

Discrimination 1 0

Investigations for other Treasury Bureaus 1,585 2,M8

i

Includes resignation%joh-tints, or other separations while employees were under

investigation

or

bel .,e infstrative decision Was made on disciplinary dclion where

investigation disclosed derogatory information.

Assistance To

Other Agencies

The Internal Security Division

conducted 2,358 investigations

for other Treasury components,

a substantial increase over the

prior years's total of 1,585 investigations. Information or assistance was furnished to the U .S.

Bureau of Customs, the Department of Transportation, the Department of Labor, the Price

Commission, the D .C. Government, and the Navy Department

for development of procedures

in their internal security functions .

Investigative

Team Produces

Results

Internal Auditors and Internal

Security Inspectors investigate

breaches of integrity by both

employees and taxpayers in collusion with employees. Intensive

investigations resulted in successful criminal prosecution as

well as recommendations for

improved controls and procedures.

One former employee pleaded

guilty to preparing and filing tax

returns for others for a fee and

to representing taxpayers in

connection with an audit examination while he was an

employee of the Service. The

joint investigation also disclosed

that he had claimed false deductions on his .own returns and on

returns prepared for others.

Examination of his returns and

64 clients' returns resulted in

additional tax and penalty of

about $350,000 .

Another investigation resulted in

the conviction of two officials of

a Savings and Loan Association

on State charges of making

fraudulent loans and Federal

charges of conspiracy to

defraud, tax evasion, and subscribing false returns. This was

an outgrowth of Inspection's

investigation of alleged irregularities concerning Service

employees . A former revenue

agent who had previously

audited the officials was fined

$2,500 for accepting fees from

them for accounting services

while still an employee. As a

result of the investigation,

changes in the banking laws of

several states are being considered .

Investigation of refund schemes

has brought about the arrest of

5 individuals on charges of preparing and filing false tax

returns . To date, investigators

have identified 300 returns

claiming questionable refunds of

more than $120,000 .

Management By

Objectives -

Assessment By

Results (MOAR)

One of the persistent problems

in Administration is setting priorities, planning programs, and

responding to new demands . To

deal with these problems the

Service started a system of

Management by Objectives and

Assessment by Results (MOAR).

MOAR does not replace the

normal management processes,

but supplements them by providing the mechanism for focusing

attention on problem areas or

programs . An important part of

the system involves meetings

between the Assistant Commissioner (Administration) and his

Division Directors and with the

Regional Commissioners and

Assistant Commissioners to

establish objectives for the

coming year.

Before the meetings, each

official completes an inventory

of resources and problems in

the Administration area . During

the meetings these problems are

discussed ; those needing special

attention are spotlighted, priorities are determined, responsibility is placed, and accountability

established . The objectives are

Fublished in a compendium that

is updated periodically .

76 77

I
Financial Personnel Multi-Unit

Developments Management Agreement

Activities Concluded With

Naire

In February 1973 the Comptroller General approved the Internal Revenue Service administrative accounting and payroll

system as conforming to prescribed principles, standards,

and related requirements .

The Service took steps this year

toward automating its administrative accounting and budget

control. It completed a basic

layout and selected equipment

for the system late in fiscal

1973. This system, when completed, will streamline fiscal

operat~ons throughout the Service.

Man-Years Authorized and Realize d

Authorize d

Appropriate . 1972 1973

Salaries and expenses 1,664 2 .719

Accounts, collection an d

taxpayer service 36,397 38,524

Compliance 30,607 32,485

The Service's fiscal 1973 budget

totaled $1,143 million, an

increase of $85.8 million over

the prior year. The budget

included $21 million in supplemental funding for the Service's

role in anti-narcotics enforcement, for administering revenue

sharing, for maintaining economic stabilization work, and for

higher postal rates. At the end

of the year the Service had

spent 99 .7% of its authorized

funds. The Service's costs

amount to about 1/2 of 1 % of revenueco

Ilections.

Percentage

Realized Realized

1972 1973 1972 1973

1,638 .1,728 98A 100.5

35.932 38,693 98 .7 1W.4

311,387 3Z .915 99A 101 . 3

Total 68 .663 72 .728 67,957 73 .3Z6 99 .0 IWO

Increase 1973 over 1972 +4 .060 +5 .369 +1 . B

NOTE:

1972 adjusted to reflect transfer of Alcohol, Tobacco and Firearms function July 1, 1973.

Additional Multi-unit collective

bargaining negotiations took

place in 1973 with a consequent

increase in the importance of

union relations in the management of the Service. All levels of

management were brought into

the union relations process . The

Service made substantial progress in position management by

increasing effectiveness and

economy in organization and

assignment practices . These

changes resulted in more than

meeting the Service's goals in

grade de-escalation . Other features of the Personnel program

included successful recruitment

efforts, advances in the cooperative education programs for prospective professional and technical recruits, extension of

career programs to data processing supervisory and managerial jobs, and further advances

in the equal opportunity program .

Personnel Summary

Location and type

Man-years

realized

Number on

1 .11. at .1 ...

of yea r

Service Total

Permanent

Temporary

National Office

Field Semica Total I

Data Processing. total

Collection and Taxpayer

Service Total

Revenue officers

Othe r

Aud it total

R~venue Agents

Off . Aud . and Tax Tech .

Other I

Intelligence, total

Special Agents

Othe r

Appellate total

Appellate conferees

Auditors

Othe r

Administration, total

Regional Counsel

Regional Inspection

Economic Stabilization Program . total

1972 1973 2972 1973

68.549 74 .170 70, 562 71 B46

60.416 63,ZS0 61,870 63 : 987

8,133 10 .919 8 , 692 7,959

4,134 4,309 4,281 4 .073

64,137 67,935 65,394 65 .694

21,785 24 .387 21,878 ZZ .501

12 .305 12,273 12,330 11.491

6,140 6 .464 6 .131 5.969

6,165 5 . M 6 .199 5,512

2 514 ZZ .392 22 .343 ZZ.858

113 :402 13,166 13 .507 13 111

3 .171 3 .336 3,322 3:3477

4,941 511190 5,514 6 , 04

2 .1164 3 .168 3,106 3 .319

2,074 2 .304 2,221 2,396

790 864 885 9Z3

1,362 1 .305 1,298 1,246

628 611 603 590

135 128 125 120

599 566 570 536

2 . 688 Z, 741 2

.

692 2 .590.

863 862 924 902

756 807 823 807

277 1,926 887 2 .079

I Includes terminal leave man-years for entire Service .

I Includes Office of International Operations . National Computer Center and IRS Data

Center .

I

Includes overseas employees hired locally. (2 in 1972 and in 1973) .

1 Reflects man-years realization and personnel on r.11 for National office and field .

A second multi-unit agreement

with the National Association of

Internal Revenue Employees

(NAIRE) was signed on April 13,

1973. This agreement covers

about 26,000 employees of nine

service centers, the National

Computer Center, and the IRS

Data Center. Important provisions of the agreement deal with

promotions, performance evaluations, grievances and disciplinary proceedings, layoff and

recall of seasonal employees,

and an agreement that the union

will take action to prevent

strikes.

An example of implementing one

of these provisions is the establishment of new performance

evaluation procedures providing

for better communications between an employee and his

supervisor. Under the contract,

five occupational areas will be

covered : Revenue Agent, Revenue Officer, Estate Tax Attorney,

Clerk, and Secretary .

78

79
Training in Union

Management Relations

Because of the expansion in

union activity, the Service has

increased contract administration and labor relations training

for managers, supervisors, and

Personnel officers .

The Service trained managers

and personnel officers to administer the Multi-District and Multi-Center agreements with

NAIRE . Between July and

December, 3,000 managers in 56

districts completed a three-day

training program on the MultiDistrict Agreements . In the fall,

a segment was added to the

Basic Supervisory , Training

Course to provide guidance to

new Supervisors on their role in

union relations. Personnel

officers participated in a workshop in union relations responsibilities. In June over 2,000 managers in nine Service Centers,

the Data Center and Computer

Center participated in a threeday course on the Multi-Center

Agreement which became effective July 1, 1973 .

Major

Management

Improvements

The Service has reemphasized

Government-wide efforts to

reduce costs. In the first year of

a two-year program the average

GS grade was reduced from

7 .8 to 7 .5 . This works out to a

savings of approximately $11

million in payroll costs.

The grade de-escalation program has encouraged IRS managers to seek new methods to

accomplish savings in their personnel resources . For example,

IRS executives have taken

advantage of the favorable labor

market by recruiting college

graduates at lower grades where

possiible ; have increased use of

paraprofessionals ; have established firmer controls over filling

vacancies ; and have revised

work methods and assignments

to assure concentration of work

at existing grade levels .

Recruitment

Efforts In Good

Labor Market

In July 1972, the Civil Service

Commission discontinued the

special salary rates for Internal

Revenue Agents and Special

Agents which had been in effect

for several years . In spite of

this, the Service successfully

met its FY 1973 recruitment

goals by hiring some 1200 internal revenue agents, 890 revenue

officers, 500 tax auditors, 350

special agents, and 160 estate

tax attorneys . Late in the fiscal

year, after review of labor

market and economic conditions

affecting the supply of accountants, the Civil Service Commission reestablished special higher

salary rates for entrance-level

accountants and internal revenue agents . The rate changes

were in time to aid spring

recruiting for FY 1974 advance

attrition hiring .

Para-Professional

Staffing To Be

Increased

After a comprehensive study of

its para-professional occupation,

the Revenue Representative, the

Collection Division found that

these employees could close

many cases formerly handled by

Revenue Officers. This change

made available manpower which

could be devoted to the more

difficult assignments . During

1973, the Service made a special effort to recruit more Revenue Representatives .

Progress In

Testing

Procedures And

Test Validation

The Service exercises special

care to see that tests used In

recruitment, reassignment, and

promotion for Service positions

are valid, job-related, bias-free,

and administered fairly. New

guidelines for noncompetitive

written testing were put into

effect, substantially revising

existing Service procedures.

This year the Service began a

special test validation study for

the Fresno Service Center. The

study should reveal whether

tests given to applicants, accurately assess ability to perform

on the job .

Cooperative

Education

Programs

Growth continued In the Service's Cooperative Education Program covering Revenue Agents,

Internal Auditors, Revenue

Officers, Tax Auditors, Special

Agents, and Internal Security

Inspectors . The program provides for part-time employment

for promising students with an

offer of employment upon graduation . About 600 students from

250 schools participated in the

program this year .

Cooperative education is an

excellent source of recruitment

of technical personnel . An additional program in Estate Tax for

law students is in the offing .

80 81
Equal Employment

Opportunity (EEO)

Activities

The Equal Employment Opportunity Act of 1972 reinforced the

Federal Government's responsibility to assure equal employment opportunity for all Federal

employees and applicants for

employment . The law requires

Federal agencies to prepare

EEO Affirmative Action Plans on

a national and local basis

for Civil Service Commission

approval . Accordingly, regional

offices, districts, and service

centers prepared plans under

the new regulations for the first

time this fiscal year. The scope

and format required for the plan

differed so radically from past

plans that many initial problems

had to be overcome. However,

at the end of the fiscal year, virtually all Affirmative Action

Plans were approved and in

operation at locations across the

country.

Progress in Employing

the Blind

The Service has progressed

substantially in its program of

employing the blind . Because of

the nature of the work, the Taxpayer Service Representative

occupation is particularly suited

to the employment of visually

handicapped persons .

On January 30, 1973, IRS personnel participated in a

C

eremoney marking the 100th graduate

trained as a Taxpayer Service

Representative at the Arkansas

Enterprises for the Blind

.

The

graduate, Miss Penny Keim

,

was

hired by the Nashville Distr ict as

a Taxpayer Service Representative. Sixteen classes have graduated 111 persons qualified to

work as Taxpayer Service Representatives.

Mr . Jack McSipadden, the first

blind taxpayer Service Representative, was selected as the

Internal Revenue Service's nominee for the Outstanding Handicapped Federal Employee of the

Year . Subsequently, Jack was

chosen as the Department of the

Treasury's nominee and was one

of the ten finalists selected by

the U .S . Civil Service on November,13,1967 .

Throughout the United States, 76

blind TSR's are working in the

district offices and service centers . The Service is striving to

achieve its goal of one blind

Taxpayer Service Representative

in each office .

Again this year, handicapped employee, a did award as an outstanding handicapped F,d~

good job for the Service. Pictured above eral employee. Julio Nilon Eisenhower (, )

82 Jack McSipa can

a b

lind T, p.y .r So- presented the award . Them-Conneiselone,

ica Reprosentdative: being inresentod an Johnnie M . Walters appears at the left.

Advancesln

Management

Careers Programs

A now Servicewide Management

Careers Program covers National Office, regional, and

district managerial positions

within ACTS, Compliance, and

Administration . The major

aspects of this program include :

(1) required training for first-line

supervisors selected under the

program, before entering supervisory positions and (2) district,

regional, and National Office

Career Boards to oversee the

development and advancement

of employees in the program . As

part of this activity, the Service

set up an ongoing Supervisory

Assessment Center, which

appraised approximately 800

applicants for first-line supervisory jobs .

Carolyn K, Buttolph became the first women

In IRS history to be appointed a District

Di 'ec or Here she 1, we,, 1, as Director

of the Burlington District by United States

The Service is launching a new The Service continued its execuCareer Program to fill lower- tive Selection and Development

level management positions in Program and selected 31 perService Centers and the Detroit sons for the 1974 ES&D class .

Data Center. Major feature s

include : establishment of a

Career Board, which places reliance on collective judgment ; a

comprehensive selection and

development process ; national

guidelines with provision for

local flexibility ; option to select

in advance of vacancies, with

opportunity for training before

assuming new duties ; and continued emphasis on career

development and training of

those new in management jobs.

District Judge Albert W . Cofftln . Holding

the Bible Is her uncle, the Reverend F.

Nelson Schlegel .

83
I

Management

Career Program

A principle of the Management

Career Program is that new

supervisors should be cc nsidered "recruits" in the sense that

they are moving into jobs as

new to them as the jobs they

entered when they came into the

Service in technical positions .

Therefore, new supervisors are

provided developmental experiences before and after they

assume new responsibilities.

With the help of a coach,

usually a middle manager or an

experienced supervisor, each

selectee in the Management

Career Program prepares an

Individual Development Plan,

which is a roadmap for the path

he will follow to acquire the

necessary experience and skill .

84

Major Revision of

Executive Development Progra m

The six-month Executive Development Program was revised in

the fall of 1972 to place more

emphasis on work of a field

official, on decision-making

'

and

on problem-solving at the District Director, Service Center

Director, and Assistant Regional

Commissioner level. Selectees

spend considerable time in the

field and the National Office

learning or managing the work

of major programs in which they

have not had experience .

Data Center Moved to

New Locatio n

The IRS Data Center moved to a

new building in downtown

Detroit. The building, especially

constructed to meet the Center's

needs, provides about 200,000

square feet of space . This move

gives the Data Center excellent

office space for a 20-year period

and a new sense of permanence.

The George S. Boutwell

Auditorium Dedicated

With the assistance of the General Services Administration, the

Service completed a muchneeded auditorium on the

seventh floor of the National

Office Building . Named after the

first Commissioner, the facility

seats 204 people and affords

improved conference and hearing accommodations for large

groups .

Protection of Facilities

Strengthened

The Service continued to

strengthen the physical security

of its data processing activities

to ensure uninterrupted operation of the revenue collection

function . Threats against Service

operations were encountered

and handled without major incident. While the number of bomb

warnings did not change from

the previous year, the number of

manhours lost by building evacuation increased significantly

due largely to a mass evacuation at one facility.

Improved Power

Supply for Computer

Operation s

Computer operations in IRS

Service Centers depend on a

stable supply of power . Each

Center's power supply is monitored to detect variations that

can slow or stop operations and

result in severe manhour and

processing time losses .

Finding that the Memphis Service Center power supply variations exceeded the standards,

the Service installed a support

motor-generator . It will, if necessary, install in Service Centers

heavy-duty rachargable battery

systems comparable to those

used by telephone companies to

maintain service during power

outages .

Paperwork Management Improvement

Activities

During the fiscal year, the Service started a campaign to

improve or eliminate over 900

reports . More than 850 employees were oriented in the techniques of effective reports management to ensure that benefits

of required reports exceed their

costs .

Records disposal programs

during 1972 resulted in releasing

space and equipment valued at

$1,597,783. A total of 120,032

cubic feet of records were

destroyed and 298,703 cubic

feet

of

records were retired to

Federa

I

Records Centers .

The Accident

Prevention Program

During the second year of the

"ZERO IN" on the Federal

Safety Program, the Service

experienced its lowest disabling

injury rate on record . The rate

of 1 .7 disabling injuries per million manhours of exposure was

a 19% improvement over 1970

and a 15% improvement over

1971 .

Service personnel operated

motor vehicles a record 115 .8

million miles in 1972 on official

business, with an accident frequency rate of 8 .0 per million

miles driven .

Toll-Free Taxpayer

Telephone Service

The Service has been installing

a system that will give all taxpayers in a state toll-free telephone access to an IRS office .

At the beginning of FY 1973, the

system covered 27 states . The

plans for FY 1974 provide for

completion of installations in the

remaining 28 districts and 20

states . Soon all taxpayers in the

country, by placing a local

phone call, will have access to

toll-free tax service .

85
Receipts,

Refunds

an d

Returns

Filed
I

i

Gross Collections

Rise To Record

Levels.

In 1973, gross revenue collections rose rapidly to a record

$237.8 billion, an amount

exceeding total receipts for 1964

and 1965 combined. The

increase over last year, $27.9

billion, was the second largest

ever recorded .

Individual income tax, including

amounts withheld and amounts

paid with estimated and regular

tax returns, accounted for 53

percent of all collections. Corporation income tax produced 16

percent of all receipts . Employment taxes, comprising payroll

taxes levied on salaries and

wages, was the second greatest

source of revenue, accounting

for 22 percent of all receipts .

Excise taxes and estate and gift

taxes made up the other 9 percent .

Individual income tax receipts of

$125 .1 billion showed a $16.3

billion (14 .9%) increase over

last year. Growth in personal

income accounted for the substantial rise.

88

Corporate income tax collections of $39 billion, up $4.1 billion (11 .8%), reflected higher

corporate profits which began in

1971 . The income tax payment

system for corporations has

been in a transition period for

several years. The Revenue and

Expenditure Control Act of 1968

provided 'for gradual elimination

of amounts exempt from estimated tax payment . 'The original

exemption of $5,500, is being

phases out over a five year

period ending in 1977, when all

corporations with $40 or more of

expected tax liability will be

required to pay their tax currently.

Tax Collections From All Sources

Billions of Delta,.

1972

1973

108.9 I'll,

Co,poration lndivldua .

43. 7

Employment

Incom Taxes Income Taxes Texas

Employment tax collections

amounted to $52.1 billion, an

increase of more than 19 percent over 1972. The growth of

salaries and wages, higher tax

rates, and increases in the taxable wage base were major factors in increased collections .

Effective January 1, 1973, the

combined employer-employee

social security (FICA) rate

increased from 10.4 to 11 .7 percent, the self-employment

(SECA) rate from 7 .5 to 8 .0 percent, and the railroad retirement

rate from 19 .9 to 21 .2 percent .

The taxable earnings base went

up from $9,000 to $10,800 on

January 1, 1973.

TOTAL

1972S209.

1973$237.8

52

5.5

0

5 .0

1618 16.6

Estate and E .~lss Tax. .

Glft Taxes

k: --
I

I

riternal Revenue refunds, including interest

(For refunds I Iby region and district, see table 5 .)

L

Amount refunded Amount of

Number

(s,

rie.ip I ndlm.-.t Interest Included

thous Ind dollars) (thousand dollars)

1973 197Z 1973 197Z iin

63 . Us 18,970 0 765 17S J,

~- :2,04 "M10,7 1:013:015 13'4 :777 In 46

62 .774,727 14,642 .417 22.412.326 38,704 47,510

61 . =8 .32S 13,750 .862 21,442,506 16,397 22 .6n

1972

C-no.Total refunds of internal r"I-nUe 1 55,154,983

lion income taxes - 268,559

Individual income and fumll.1mialt --as, total 1 54 .1123 .523

Excessive prepayment incomebo, 1 53,20,811

Other income tax and Fediual,risuranc e

Cc ntri butio, n s Act ta a s 1,543,374

Railroad retirement 458 U

romployment insurance 75

,

Estate l1.31146o Gift

Excise taxes

V, '

Ale 8 . total 45:.34...5

hot t111:.'

bacco tax 39o 32o

M aZacturers' and rmailers' ui .. t. ..

lots 5.094

Gaso :inne,usod on terms 62 Gas . , . o .hieh..y 1,247

Of er, 3,785

All other excise taxes 31,541

-.Fig,res have not been lld~, 1 11 llecl.aimbfusamerils from

th federal Old-Aff .

.d So -v-

. Far.

isabilitY. and Federal

Hospital Insurance Trust Funds nru0ting to $44

7"332 '000

in 1972

and '$478.856,000 in 1913 : 1101TI the Hipay Trust To n d m. .n , ing

to $144 .325,000 in 1972 and $146,373 .60 1973 ; and from the uneploymemIT-st Fund --fing to ',%182 .OGU in 1972 and $20.820 .969

in 19 3 .

N,li 6 on _:w I ;*1 11.711i,".nd', e -totaling $14,082,000 in 1972

and 76 . 9 del a checks totaij $18,209 .000 in 973.

1 .565 .369 877,554 942.278 21,930 24,414

1,916 619 7n 7 18

118 13.382 20.821 370 456

1 :545 52 .702 62,057 5,235 6,225

2 " 7:11 fn1:4031

a

1,443

55:ZI12 ~373 614 4 037 3,18689 44Z

10,542 106 1 109 087 6

8

su 2: 03 393 2 :706 (') V)

4 .429 1 .246,972 175,428 1,951 395

so 103 .619 102 .278 - -

1.0m 23,120 24 .765 - -

3,357 1,120,Z33 48 .385 1,951 325

39,793 18,217 26 .816 1,231 1.039

~nlj nc ."d.,,, refund "her .1hc1wJ- classified ."

d excess FICA credits .

includes drawbacks and stamp redemptions .

: .ncl ;,de,., n1"b,',,I'r,g it used I., n.nhighw,y purposes .

. d fircotics . silver, wagering (excise and stamps), capital

Stock . and other e .ciSe tax refunds.

' Less than $500.

Increase In

Returns File d

Almost 117 million returns of all

types were filed in 1973. Individuals filed 80 .4 million returns,

with 22 million using the simplified Form 1040A.

The chart on this page shows

the percentage distribution of all

tax returns filed with the Service .

PERCENTAGE DISTRIBUTION

OF TAX RETURNS FILE D

Form 1040

48%

Form I Employment 21 ./.

c e

Zl:% \

INCREASE IN NUMBER OF RETURNS FILED

Million.

77.

1972

1973

9T

TOTAL

1972-112

1973-116 .9

22.0 2-'

IndlAd .sl

7 .3 64

= 1.0 1 .0

Declarations Partnershi p

and fiduciary of estimated

tax

The table below presents data

on returns filed by type of return

for 1972 and 1973 .

1 .9 1.9

Corporation Employ .men t

Number of returns filed, by principal type of return

Type of return

2.7 3.1

E .ds. and

other

1972 1973

Grand total 112,000 116,940

Income 299 91 coy

individual and fiduciary, total "' . 'of"

i

I

A,ndividual-citizen and resident aliens. total 7!1,106 .879

individual :no fiduciary ~1'1'2 1 :"

Do ions of estimat d tax, total . 531

Individual 7 .328 6.531

Corporation

NA NA

partnership :

Corporal ion 9471, "1

ofhe, 955 1. noErnpi ymantts ., total 22 .

007

Z3 .992

E,p. :.,y.,,, 16 : 1 3.068 16 . .374

E p ye F=.

'9,12 in.-h.ld -01.y.tis) 616 3 .459

Employers' Form 94 retire F 0 3 (agricultural a ployees) 411 . jt~ 111

Railroad ment . .s CT4 .

2 15 11

Unemployment insurance . Form 94D 1 .1132 3,695

Est-t

0

tax

Gift ta

x 1

19, 21, .

Excise tax . total 1 .3" I

O-pati . . I tax '14 .4"T.1

Form 720 (retailers . manufacturers. etc.) 297 "1

Alcohol 20 11

Tobac o 5 5

Highway use tax 295 461

Other I Zo lag

90 91
Organizat

Principal

Officers

Organization of the

Internal Revenue Servic e

Internal Revenu e

Re

g

ions and Districts

ion -

Principal Officers

Historical

Li st of Commissioners
Princip

Of The

Revem

As Of

1973

NATIONAL 0

Office of the ,

COmmissione

Donald C. Ale

Deputy Comn :

Raymond F. H

Assistant to it,

Edward M . Pe,

Assistant to th

Commission

Donald C . DaA

Chairman, Tax

Coordinating

James N . Kinse

Director, Tax A

Advisory Sta;

Joseph A . Harry

Assistant to th e

(Public Affair.,

Stanley C . Jens,

Administration

Acting Assists ,

I Joseph T. Davis

Director, Progra,

Julius H. Lauder ,

Division Diecj

Facilities M,

Leo C. Ingle :

Fiscal Mans,

Alan A . Beck

Personnel

Billy J . Browi

Training

Richard C. M

Deputy ~quaf Etyy~

Opportunity off.

rhompso n

1i

)al Officers

~Internal

ie Service

June 30,

FFICE

Commissioner

r

!xander

rissioner

larless

,a Commissioner

rkins

a Deputy

,er

,kins

Forms

I Committee

31

dayinistration

fion

Commissioner

3 )

an (Acting)

it Commissioner

,n Staff

dale

!ors :

inagement

sby

7emen t

n

cCullough

Voyment

icer Barbara R .

Compliance

Assistant Commissioner

John F . Hanlo n

Deputy Assistant Commissioner

Joseph G . McGowa n

Division Directors :

Appellate

James C . Stigamire

Intelligence

John J . Olszewski

Audit

S . B . Wolfe

Office of International

operations

Roger L. Plate

Accounts, Collection and

Taxpayer Service

Assistant Commissioner

Dean J . Barron

Deputy Assistant Commissioner

Gerald C . Portney

Division Directors :

Collection

Harold E . Snyder

Accounts and Data

Processing

Donald G. Elsberry

Taxpayer Service

Vacant

IRS Data Center, Detroit,

Mich .

Ernest Shaw

National Computer Center,

Martinsburg, W. Va .

M . Eddie Heironimus

Inspection

Assistant Commissioner

Francis 1 . Geibe l

Division Directors :

internal Audit

William C . Rankin

Internal Security

William J. Hulihan

Planning and Research

Assistant Commissioner (Acting)

Lancelot W . Armstrong

Division Directors :

Planning and Analysis

Albert Y. Sze (Acting)

Systems Development

W . J . O'Malley (Acting)

Research

Claude D . Baldwin

Statistic s

Vito Natrell a

Technical

Assistant Commissioner

Peter P. Weidenbruch, Jr.

Deputy Assistant Commissioner

Wade F . Hobbs

Division Directors :

Income Tax

Victor Cunigho

Miscellaneous and Special

Provision Tax

Duane B . Johnson

Technical Publications and

Services

Roy J . Linge r

Stabilization

Assistant Commissioner

Edward F. Presto n

Division Directors :

Technical and Services

William Daniel

Compliance an d

Enforcement

Stanley Goldberg

Office of Chief Counsel

Acting Chief Counsel

Lawrence B. Gibbs

Deput Chief Counsel

Roger V . Barth

Special Assistant to the Chief

Counse l

Stanley H . Hacket t

Special Assistant to the Chief

Counsel

Lester Stei n

Technical Advisor to Chief

Counsel

Robert B. Jacoby

Special Assistant to the Chief

Counse l

Arthur B . White

Associate Chief Counsel

(Litigation)

John T . Rogers

Associate Chief Counsel

(Technical)

Richard M. Halm

Division Directors :

General Litigatio n

J . Walter Feigenbaum

Criminal Ta x

Albert L . Henkle

Refund Litigation

John W. Hol t

Tax Court Litigation

Robert A . Bridges

Interpretative

John L . Withers

Legislation and Regulations

James F. Drin g

Operations and Planning

William P. Crewe

Central Regio n

All Regional Offices at 550 Main

Street, Cincinnati, Ohio 45202,

unless a different address is

indicated

Regional Commissioner

Charles G. Keebler

Assistant Regional

Commissioners :

Administration

Arthur J . Collinson

Audit

Michael A . DeGuire

Accounts, Collection &

Taxpayer Servic e

Wayne S . Kegerreis

Appellat e

W. Franklin Hammack

Intelligence

Harold B . Holt

Stabilization

Edgar H . Hughso n

District Directors:

Cincinnati, Ohio 54201

Paul A. Schuster

Cleveland, Ohio 44199

Alvin M . Kelley

Detroit, Mich . 48226

Thomas A . Cardoza

Indianapolis, Ind .

James E . Daly

Louisiville, Ky . 40202

Paul F . Niederecker

Parkersburg, W. Va .

Hugh D .Jones,

Director, Cincinnati Service

Center, Covington, Ky. 41019

Patrick J . Ruttl e

Regional Counsel

David E . Mills

Regional Inspector

Edward A. Conroy

Mid-Atlantic Region

All Regional Offices at 2 Penn

Center Plaza, Philadelphia, Pa.

19102, unless a different

address is indicated

Regional Commissioner

Edward J . Fitzgerald

Assistant Regiona l

Commissioners:

Administration

Americo P. Attorri

Audit

Dwight L . James

Accounts, Collection

Taxpayer Service

Vacan t

Appellate

Harold A . McGuffin

Intelligence

Amerigo R . Manzi

Stabilization

John Jennings

District Directors:

Baltimore, Md . 21201

William D. Waters

Newark, N .J . 07102

Elmer H . Klinsmary

Philadelphia, Pa . 19108

Alfred L. Whinstory

Pittsburgh, Pa . 15222

C . Dudley Switzer

Richmond, Va . 23240

James P . Boyle

Wilmington, Del . 19801

Charles 0 . DeWit t

Director, Philadelphia Service

Center, Philadelphia, Pa .

1915 5

Norman E . Morrill

Regional Counsel

Emory L. Langdon

Regional Inspector, Bankers

Securities Building, Walnut

and Juniper Streets, Philadelphia, Pa. 1901 7

Emanuel L . Schuster

99
Th

List of Commissioners

of Internal Revenue

GeorgeS. Boutwell

Massachusetts

July 17, 1862/Mar . 4, 1863

JosephJ. 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

Green B . Raum

Illinois

Aug . 2,1876/Apr . 30,1883

Walter Evans

Kentucky

Mby 21, 1883/Mar . 19, 1885

JosephS. Miller

West Virginia

March . 20, 1885/ Mar. 20, 188

9

John W. Mason

West Virginia

Mar . 21, 1889/Apr . 18, 1893

102

JosephS . Miller

West Virginia

Apr. 19, 1893/ Nov . 26, 1896 W . St. John Forma n

Illinois

Nov. 27, 1896/Dec . 31, 1897

Nathan B. Scott

West Virginia

Jan .1,1898/Feb .28,1899

George W. Wilson

Ohio

Mar. 1, 1899/Nov. 27,1900

John W. Yerkes

Kentucky

Dec . 20, 1900/Apr . 30, 1907

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 . Roper

South Carolina

Sept. 26,1971/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/Oct. 8, 1943

RobertE. Hannegan

Missour i

Oct . 9, 1943/Jan . 22, 1944

Joseph0. Nunan, Jr .

New York

Mar . 1, 1944/June 30,1947

GeorgeJ. Schoeneman

Rhode Island

July 1, 1947/July 31,1951

John B . Dunla

p

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

Dana Latham

California

Nov . 5, 1958/Jan . 20, 1961

Mortimer M . Caplin

Virginia

Feb. 7, 1961 /July 10, 1964

SheldonS . Cohen

Maryland

Jan 25, 1965/Jan 20, 1969

Randolph W . Thrower

Georgia

Apr. 1, 1969/June 22, 1971

Johnnie M. Walters

South Carolina

Aug . 6, 1971 /Apr. 30, 1973

DonaldC. Alexander

Ohio

May 25,1973

Office of Commissioner of Internal Revenue

Cre ated by Act of Congress, July

1 . 186

2

In addition, the following vare Acting Coremission- during period, .1 time when

there

We, he

Commissioner holding the

.flic i.:

N mrhn W . Doug] .,, of Pennsylvania from

. 1 . 1 870, 1. Jan . 2, 1871 ; HenryC.

Rogers, of Pennsylvania, from May1 to

May 10, 1883, and from MayI to une 4,

1907 ; JohnJ. Knox . .1 Minnesota hom

May 11 to May 20, 1883 ; Robert Williams,

Jr ..

of 0

No

.

from Nov . 28 to Dec. 19, 1900 ;

Millard F . West, of Kentucky . from Apr . 12

0 May 26. 1921 ; H . F . Mires, of Washingan, from Aug . 16. to Aug. 19 . 1930 ; Frostily

Ft SaWrldge, of Iowa, from May 16 to

Jun

.

5. 1 933 ; HaroldN. Graves, of Illinois,

1 0 IFS,. ll

)rmh

from Jim .

23 to Feb . 44, JohnS.

0 1 1 . k'

0 he., - N

rth Car

.""

N 11, Ij

1;'~ 1, 'a J an

9 ' 'S ;

Justin F Win a

New York, from Jon, 20 to Feb ' 3, 1953 ; 0. Gordon Dolk, ofVirg into

. from

"ov I to Doc . 4, 1955; and from Oct . I to No, 4,

1958; C harles1. Fox, of Utah, from Jan . 21

to Feb

. 6 , 196 , ; Bertrand M. Harding . of

Te,as, from July 11, 1964 to Jan . 24, 1965;

and William H 2, . Smith of Virginia, from Jan.

to Mar. 31' 1'69 :

Harold T . Swartz of

hidl,ana fiJ.. 23;,.1 1 , -

5

:I pit Algr

197 ~aymoncl F . He allfornia

from MayI to May 25, 1973.

103

14LIL

-
. De

rh

Publication

Number/Title

17

Your Federal Income Tax

Price 75 0

54

Tax Guide for U .S. Citizens

Abroad

76

Law and Regulations Relating to

'he Treatment of Annuities for

income Tax purposes. Price 450

225

Farmer's Tax Guide

334

Tax Guide for Small Business

Price 750

337

Law and Regulations Relating to

Employee Pension, Annuity,

Profit-Sharing, Stock Bonus, and

Bond Purchase Plans including

Plans for Self-Employed Individuals . Price 700 (revised 7-68)

349

Federal Highway Use Tax

37 7

Pension Trust Procedures

Price 55 0

378

Federal Fuel Tax Credit or

Refun d

for Nonhighway and Transit

User s

448

A Guide to Federal Estate and

Gift Taxation . Price 500

(revised 7-71 )

463

Travel, Entertainment and Gift

Expenses

501

Your Exemptions and Exemptions for Dependents

502

Deduction for Medical and

Dental Expense s

503

Child Care and Disabled

Dependent Car e

504

Income Tax Deductions for

Alimony Payments

505

Tax Withholding and Declaration

of Estimated Tax

506

Computing Your Tax Under the

Income Averaging Metho d

508

Tax Information on Educational

Expense s

509

Tax Calendar and Check List

for 1973

510

Information on Excise Taxes for

1973

511

Sales and Other Dispositons of

Depreciable Property

512

Credit Sales by Dealers in

Personal Property

513

Tax Information for Visitors to

the United States

514

Foreign Tax Credit for U .S.

Citizens and Resident Aliens

515

Withholding of Tax on

Nonresident Aliens and

Foreign Corporations

51 6

Tax Information for U .S.

Government Civilian Employees

Stationed Abroad

517

Social Security for Clergymen

and Religious Workers

518

Foreign Scholars and Educationa l

and Cultural Exchange Visitors

519

United States Tax Guide for

Alien s

520

Tax Information for American

Scholars in the U.S . and Abroa d

521

Tax Information on Moving

Expense s

522

Adjustments to Income for

Sick Pa y

523

Tax Information on Selling

Your Hom e

524

Retirement Income Credit

525

Taxable Income and Nontaxable

Income

526

Income Tax Deduction for

Contribution s

527

Rental Income and Royalty

Incom e

528

Information on Preparing Your

Tax Retur n

529

Other Miscellaneous Deductions

530

Tax Information on Deductions

for Homeowners

531

Reporting Your Tips for Federal

Tax Purposes

532

Tax Information for Students

and Parents

533 '

Information-on Self-Employment

Ta x

534

Tax Information on Depreciation

53 5

Tax Information on Business

Expense s

536

Losses From Operating a

Busines s

537

Installment and DeferredPayment Sales

538

Tax Information on Accounting

Periods and Methods

539

Withholding Taxes From Your

Employee's Wage s

540

Tax Information on Repairs,

Replacements, and Improvements

541

Tax Information on Partnership

Income and Losse s

542

Corporations and the Federal

Income Tax

543

Sale or Other Disposition of

a Business or Business

Interes t

544

Sales and Exchanges of Assets,

Including Information o n

Basis of Asset s

545

Income Tax Deduction for

Interest Expense

546

Income Tax Deduction fo ; Taxes

547

Tax Information on Disasters'

Casualty Losses, and Thefts

54 8

Tax Information on Deduction

for Bad Debt s

649

Condemnations of Private

Property for Public Use

550

Tax Information on Investment

Income and Expenses

552

Recordkeeping Requirements

and a Guide to Tax Publication s

554

Tax Benefits for Older Americans

555

Community Property and the

Federal Income Tax

556

Audit of Returns, Appeal Rights

and Claims for Refund

557

How to Apply for Recognition of

Exemption for an Organization

55 8

Tax Information for Sponsors of

Contests and Sporting Events

55 9

Federal Tax Guide for Survivors,

Executors, and Administrators

560

Retirement Plans for SelfEmployed Individual s

561

Valuation of Donated Property

563

Tax Return Filing Requirements

for U .S . Citizen Abroa d

564

Tax Information on Mutual Fund

Distribution s

565

Tax Information on the Interest

Equalization Ta x

I

106 107
Supreme Court

Action

Criminal Cases

In United States v. Bishop, 412

U .S . 346 (1973), the Supreme

Court resolved the disagreement

that had existed in the Federal

judicial circuits over the interpretation that should be

accorded the term "willful" as

used in felony statutes and as

used in misdemeanor statutes.

Bishop was convicted of willfully

making and subscribing false

returns, a felony offense under

26 U.S .C . § 7206(l), aftei the

trial court refused a lesser-included-offense jury charge under

26 U .S.C. § 7207, which makes

it a misdemeanor willfully to

deliver or disclose to the Service any return or document

known to be fraudulent or false

as to any material matter. The

Court of Appeals, Ninth Circuit,

reversed on the ground that

"willfully" as used in § 7206(l)

implied an evil motive and bad

faith, but the same word as used

in § 7207 required only a showing of unreasonable, capricious,

or careless disregard for the

truth . In reversing the Ninth Circuit's decision, the Supreme

Court held that "willfully" has

the same meaning in §§ 7206(l)

and 7207, and connotes the voluntary, intentional violation of a

known legal duty . The distinction

between the statutes, the Court

noted, lies in the additional misconduct that is essential to the

violation of the felony provision ;

hence, the trial court properly

refused the requested lesser-included-offense instruction based

on Bishop's erroneous contention

that the word "willfully" in the

misdemeanor statute implied

less scienter than the same

word in the felony statute .

Supreme Court

Civil Cases

On January 22, 1973, the

Supreme Court reversed per

curiam a decision of the United

States Court of Appeals for the

Ninth Circuit and field for the

Government in a significant

estate tax case, United States v.

Chandler, 410 U .S . 257 (1973).

The case involved United States

Savings Bonds, Series E, which

were purchased by the decedent

and registered in her name with

her granddaughters as co-owners . The issue was whether such

bonds were includable in her

gross estate as jointly held

property under Code § 2040

where she hand-delivered them

prior to her death to the coowners with the intent to make

an irrevocable gift, but failed to

have the bonds reissued without

her name . The court ruled that

the bonds were still includable

in her estate despite her attempt

to divest herself of ownership. It

relied on the Treasury Regulations dealing with Savings

Bonds which provide (31 C.F .R .

§ 315) that these bonds can be

transferred from one co-owner to

another only by surrendering

them and having them reissued

solely in the name of the other

co-owner. The court explained

that any other rule could lead to

chaotic conditions with respect

to these bonds, noting the Government's assertion that approximately 500 million Series E

Bonds were outstanding, that

these were worth over 50 billion

dollars, and that 75% of them

were registered in co-ownership

form .

On February 27, 1973, the

Supreme Court again reversed a

decision of the United States

Court of Appeals for the Ninth

Circuit and held for the Government in United States v . Basye,

410 U.S . 441 (1973) . The issue

was whether contributions by the

Kaiser Foundation Health Plan, a

non-profit corporation, to a

retirement plan of the Parmanente Medical Group, a limited

partnership of doctors, should

be treated as income to the

partnership and thus be taxable

to the individual partners at the

time of the contributions. The

individual partners could forfeit

their rights to benefits under the

plan, but no contributions could

ever revert to the Health Plan .

The Supreme Court concluded

that the case was controlled by

long-standing principles of tax

law: first, that income is taxed

to the party who earns it and that

liability may not be avoided by

an anticipatory assignment of

that income (Lucas v. Earl, 281

U .S. 111 (1930)) and, second,

that partners are taxable on

their distributive or proportionate shares of current partnership

income irrespective of whether

that income is actually distributed to them (Heiner v. Motion,

304 U.S . 271 (1938)). The court

held, in a decision which constitutes an important precedent

favorable to the Government,

that the partnership was obligated to report the contributions

as income presently received

and that each partner was

responsible for his distributive

share of that income .

Another decision favorable to

the Government was rendered

on April 16, 1973, in United

States v . Indrelunas, 411 . U.S . 216

(1973) . That case arose from a

tax refund suit and related

third-party complaint in the district court. The issue presented

to the Supreme Court was, however, not a tax -issue, but an

issue of court procedure . The

court held per curiam that the

Government had filed a timely

appeal to the Court of Appeals

when its appeal was filed within

60 days from the final entry of a

formal judgment of the district

court set forth in a "separate

document," but more than 60

days after the district court's

civil docket entry following jury

verdicts, which entry contained

the language "Enter judgment

on the verdicts. Jury discharged." The Supreme Court

decision interpreted the requirement of Rule 58, Federal Rules

of Civil Procedure, that every

"judgment shall be set forth on

a separate document ." It clarified the question of what documents constituted judgments for

purposes of the running of the

appeal period in federal courts,

a subject on which lower courts

had rendered conflicting opinions. The court stated that the

"separate document" provision

of Rule 58 should be "mechanicaliy applied in order to avoid

new uncertainties as to the date

on which a judgment is entered . "

On May 7, 1973, the Government

lost an important estate tax

case . United States v . Cartwright, 411 U .S . 546 (1973) . This

case involved the question of

the proper method of valuing

open-end investment company

(mutual fund) shares for estate

tax purposes . The issue related

to the validity of Trees . Reg.

§ 20 .2031-8(b)(1), which provides , essentially that such

shares should be valued at the

offering (ask) price rather than

the redemption (bid) price, The

offering (ask) price is the mu tual

fund's price to the general

public, which includes the net

asset value per share0 p ~us a

sales commission r sales

load" in so-called "load" funds .

The Supreme Court held the

Regulation invalid, affirming

lower court decisions which sustained the use of the redemption

price at the date of death for

estate tax valuation purposes,

because this was the only price

that the estate could have

obtained if the shares had been

sold . The court held that the

Regulation was technically

inconsistent with the "willing

buyer-seller" valuation concept

and was manifestly inconsistent

with the provisions of the Investment Company Act of 1940 . The

decision will have a widespread

effect with respect not only to

estate and gift taxes but also to

the basis of mutual fund shares

for income tax purposes .

The Supreme Court on June 4,

1973, reversed a decision of the

United States Court of Claims

and held for the Government in

United States v . Chicago, Burlington & Quincy Railroad Co .,

U .S . (1973) . The issue decided

was whether taxpayer could

I

nclude in its basis for deprecialion of road property sums

attributable to facilities such as

bridges, overcrossings, and

funds primarily to enhance

flasher signals built with public safety and traffic flow at

rail road-h ighway intersections .

The taxpayer had claimed, and

the Court of Claims had allowed,

depreciation on these costs

even though taxpayer did not

incur them . These costs were

actually incurred by the Federal

Government under federal highway aid legislation . The Supreme Court considered Detroit Edison Co . v. Commissioner, 319 U .S . 98 (1943), to be

controlling, rather than . Brown

Shoe Co ., Inc. v . Commissioner,

339 U.S . 5B3 (1950), relied upon

by taxpayer. Large revenues

were involved and the decision

prevents substantial windfalls to

this taxpayer and others similarly

situated . It should also constitute a significant favorable precedent in the area of capital

contributions under Code § 118.

110 ill
In United States v . Walter

Kocher, 468 F .2d 503 (2nd Cir.

1972), the Second Circuit held

that the Government may

enforce its tax lien against the

husband by selling property held

by the husband and wife as tenants in common and may bid at

the sale although the tax lien is

a junior lien . The Court noted

that, although state law determines what interest the taxpayer

has in the property, federal law

determines the manner of

enforcement of the tax lien . The

Court concluded that the literal

language of Code § 7403 provides for the sale of any property in which the taxpayer has

any interest with the proceeds

to be distributed according to

the interests of the parties. The

Court specifically rejected a

contrary decision by the Fifth

Circuit in Folsom v . United

States, 306 F.2d 361 (5th Cir.

1962) and agreed with the

Fourth, Seventh and Ninth Circuit decisions in Washington v.

United States, 402 F.2d 3 (4th

Cir . 1968), cart. denied, 402 U.S .

978 (1971), United States v. Trilling, 328 F .2d 699 (7th Cir. 1966),

and United States v. Overman,

424 F .2d 1124 (9th Cir . 1970) .

The Court also held that the

Government could bid at the

sale even though its tax lien is

junior to senior mortgage liens .

Although under Code § 7403(c)

the Government may bid only

where its tax lien is the senior

lien, the Court held that the

Government had a right to bid

under 31 U .S .C . § 195 when its

tax lien was the junior lien .

In In re Statmaster Corp ., 465

F .2d 978 (5th Cir. 1972) the

trustee for the bankrupt corporation deposited funds gathered In

the course of liquidation in interest-bearing accounts. Thereafter,

the trustee petitioned the bankruptcy court for an order relieving and discharging him

from any income tax liability .

Attached to the petition was a

corporate tax return showing no

tax due . The Government's contention that the court had no

jurisdiction was rejected by the

Referee. On review, the district

court reversed, holding there

was no jurisdiction because of

the statutory prohibition against

issuing declaratory judgments

with respect to Federal Taxes,

28 U .S .C . § 2201 . In their decision affirming the district court,

the Fifth Circuit agreed that the

bar on declaratory judgments

prevented them from exercising

jurisdiction. They noted a Congressional intent that the initial

processing of tax matters be

handled administratively .

The Tenth Circuit, in United

States v. Billingsley, 469 F .2d

1208 (10th Cir. 1972), reversed

the decision of the district court

which held that the summons

issued to taxpayer's employer

was unenforceable Linder the

decision in Donaldson v. United

States, 400 U .S. 517 (1971),

because It had been issued after

the special agent's recommendation for criminal prosecution

had been made . The 'Tenth Circuit agreed with the Government's contention that the recornmendation referred to in

Donaldson occurs, at the earliest, when the Service forwards a

case to the Department of Justice for criminal prosecution.

The court stated that Donaldson

sanctioned the use of the summons in an investigation with

both civil and criminal aspects

and that, while a criminal investigation remains solely with the

Service, the civil aspects are

inextricably associated with the

criminal . Only after reference to

the Department of Justice, when

two distinct agencies are

involved, do the civil and criminal aspects at least begin to

disentangle. The case however,

was remanded to the district

court for a determination as to

whether the summons had been

issued in good faith .

In the case of Lucia v . United

States, 474 F.2d 565 (5th Cir.

1973), the Court of Appeals in

an an banc decision reversed

the panel decision and

remanded to the district court

for a factual determination

respecting the taxpayer's allegation that the wagering excise tax

assessment was arbitrary, capricious, and without factual foundation . The Court rejected the

panel decision that, since the

taxpayer was under no "duty" to

file wagering excise tax returns,

to deprive him of the defense of

the bar of the statute of limitations constituted "punishment"

for failure to file, which is proscribed by the Marchetti and

Grosso cases . The Court concluded that the tax assessment

was not barred because the

statute of limitations does not

commence to run until a return

is filed, even though to require a

return would violate the taxpayer's privilege against self-incrimination .

In Clifford Irving, at a/ . v. Elliott

Gray, - F .2d - (2d Cir.

1973), the Second Circuit

affirmed the judgment of the district court refusing to restrain

collection of federal income

taxes which had been determined to be due and owing as a

result of the termination of the

taxpayers' taxable years pursuant to Code § 6851 . The

Second Circuit's unanimous

opinion approved the Government's actions, including the

contention that the "full payment" rule of Flora v. United

States, 357 U .S . 63 (1958) was

inapplicable to this case, and

that the decision in Schreck v .

United States, 301 F . Supp . 1265

(D. Md . 1969) is erroneous . The

Second Circuit followed the

decision of the Seventh Circuit

in Williamson v. United States,

- F.2d - (7th Cir. 1971)

and Parrish v . Daly, 350 F . Supp .

735 (S.D . Ind . 1972). The Williamson decision has previously

received support from three tax

court cases which ruled that

taxes declared to be due and

owing pursuant to the provisions

of Code § 6851 (and its predecessor provisions) do not constitute deficiencies within the

meaning of the Code. The

Second Circuit concluded that

the reasoning of Williamson and

Parrish is correct and that the

assessments made by the Service were not deficiency assessments governed by Code § 6B61

but were rather assessments

made under the general assessment authority of Code § 6201 .

The Court of Appeals for the

Second Circuit in a decision

rendered on June B, 1973, in In

re Freedomland, Inc ., - F.2d

-(2nd Cir. 1973), affirmed

the district court's holding that

the trustee in bankruptcy must

withhold the federal income and

social security taxes from the

payment of the second priority

wage claims and must file the

requisite tax returns relative

thereto. The Second Circuit

reversed on the issue of the

priority applicable to the payment of these taxes, concluding

that they were not a debt owed

by the bankrupt to be given a

fourth priority, but were owed by

the bankrupt's employees and

conceptually were to be treated

as a second priority

c

laims, the

same as the wages from which

they derive . The Court of

Appeals also held that the

trustee may withhold on the 25

per cent basis which the district

court had found represented an

Internal Revenue Service

attempt to facilitate the bankruptcy administration on a practical basis .

The Tax Court, in Efrain T.

Suarez, 58 T .C . 792 (1972), articulated its first square holding

concerning use of allegedly Illegally obtained evidence as the

basis of a statutory notice of

deficiency. The offices and clinic

of petitioner, later convicted as

an abortionist, were raided by

Florida police who seized certain records of petitioner. Deficiencies in tax were delermined based on these records .

Petitioner argued that the determinations were invalid, relying

on the 4th and 5th Amendments .

The Court determined thaf the

warrantless raid was unconstitutional and therefore illegal and

that, since respondent's determinations had been based on illegally seized evidence, the statutory notice was not entitled to

any presumption of correctness.

Significantly, however, the Court

held that the notice of deficiency

was sufficient to confer jurisdiction on the Tax Court, although

the Commissioner was ordered

to assume the burden of going

forward with the evidence at the

In.al of the case on its merits .

The use of a "shell" or "nominee" corporation as a paper

entity for the financing of commercial property was involved in

David F . Bolger, 59 T.C . 760

(1973) . There, petitioner utilized

the corporate form to acquire

property, finance the purchase

price and construction thereon,

and lease the same to third parties . Contemporaneously, legal

t itle to the property was transferred to petitioner subject to

the mortgage and lease . Petitioner made no investment and

did not assume any liability .

Petitioner's primary position was

that the corporation was not a

viable taxable entity, but a mere

nominee . On this issue the Court

held for respondent by reason o f

114 115
of useful life need not be the

same. Lastly, the court held in

favor of the taxpayer on the

issue of whether the investment

credit should be allowed on the

full basis of the film for depreciation purposes, or only on

"those costs which are directly

related to the finished negative,"

excluding the cost of unused

portions of the film .

On January 8, 1973, the Government prevailed in Hall Paving

Co. v. United States, 471 F.2d

261 (1973). This decision

reversed a district court decision and remanded the case for

further fact findings under Code

§ 269. The issue presented was

whether post-acquisition net

operating losses of affiliated

corporations can be offset

against post-acquisition income

of an acquiring corporation on a

consolidated return, or whether

Code § 269 can be utilized to

disallow such deductions where

acquisitions are for tax avoidance purposes . Previous decisions in Herculite Protective

Fabrics Corp . v . Commissioner,

387 F .2d 475 (3rd Cir . 1968), and

Zanesville Investment Co. v.

Commissioner, 335 F.2d 507 (6th

Cir . 1964), had appeared to limit

the Government's right to disallow such post-acquisition losses.

The Fifth Circuit pointed out that

the language of the statute gives

no hint of any restriction to preacquisition losses, and found

that the legislative history indicates that the Congressional

purpose was to enable the Interal Revenue Service to disallow

not only current and past losses

but also prospective and anticipated losses . The decision constitutes an important precedent

supporting the Government's

efforts to prevent tax avoidance

through the use of Code § 269 .

On February 27, 1973, an

adverse decision was rendered

in Janis v. United States, 73-1

U.S.T .C . 7372 (C .D . Calif . 1973),

an important test case which is

now on appeal to the Court of

Appeals for the Ninth Circuit .

The case involved wagering

excise taxes which had been

assessed at least in major part

based on evidence which had

allegedly been obtained in violation of the Fourth Amendment to

the Constitution . The court held

that the affidavit supporting the

search warrant in the case

failed to comply with the

requirements set forth in Spinelli

v . United States, 393 U.S . 410

(1969), and, therefore, that the

evidence had been obtained

from an unreasonable search

and seizure in violation of the

Fourth Amendment . It further

held that the civil wagering tax

assessment based on such evidence was invalid and, in effect,

held that the exclusionary rule

under the Fourth Amendment

applies in civil tax cases. A similar decision was rendered by

the Tax Court in another test

case, Efrain T. Suarez, 58 T .C .

792 (1972), in which an appeal

may be filed to the Fifth Circuit

at a later date . The Supreme

Court has never passed on the

question of whether the exclusionary rule under the Fourth

Amendment applies to civil

cases, and the Government's

position is that the exclusionary

rule does not apply in such

cases .

Three adverse decisions in Portage Plastics Co., Inc . v. United

States, F.2d (7th Cir. 1973),

Shores Realty Co., Inc . v . United

States, 468 F.2d 572 (5th Cir.

1972) and Amory Cotton Oil Co .

v . United States, 468 F.2d 1046

(5th Cir. 1972), resulted from

the Government's attempts to

uphold the validity of Trees .

Reg . § 1 .1371-1(g), relating to

the requirements for recognition

as a Subchapter S "small business corporation" under Code

§ 1371 . One of the requirements

is that such corporation not

have more than one class of

stock . The question arose as to

whether advances to such corporations, which were not in

proportion to shareholdings, but

which gave rise to equity under

traditional "debt v . equity" or

"thin capitalization" tests, should

be treated as giving rise to a

second class of stock, thus disqualifying such corporations from

Subchapter S treatment. Treas .

Reg . § 1 .1371-1(g) answered this

question in the affirmative, but

the Regulation has now been

declared invalid . Such advances

may give rise to equity for other

purposes under the Code, but

such treatment does not require

disqualification as a Subchapter

S corporation under these decisions.

Collections, Refunds,

and Returns File d

1 . Internal revenue collections

by source and by internal

revenue regions, districts,

States, and other areas ./122

2. Internal revenue collections

by sources and quarters ./

129

3 . Internal revenue collections

by sources, fiscal years

1972-73./13 0

4. Internal revenue collections

by principal sources, fiscal

years 1940-1973./132

5 . Internal revenue refunds

including interest ./134

6 . Internal revenue refunds

issued by regions, districts,

States and other areds ./135

7. Number of returns filed by

internal revenue regions,

districts, States and other

areas. / 13 6

B. Internal revenue collections,

cost, employees, and U .S .

population, 1942 through

1973./13 7

Examination of Tax

Return s

9. Number of returns examined by class of tax and by

internal revenue regions,

districts, and other areas./

138

10. Additional tax and penalties recommended after

audit examination by class

of tax and by internal revenue regions, districts and

other areas ./139

Cases Receiving

Appellate Consideration or in Litigation

Appellate Divisio n

11 . Receipt and disposition of

cases not before the Tax

Court./140

12. Receipt and dispostion of

Income, estate, and gift tax

cases petitioned to the Tax

Court (docketed cases) ./140

13. Offers in Compromise Dispositions./141

Office of the Chief

Counsel

14 . Processing of income,

estate, and gift tax cases in

the Tax Court./141

15 . Receipt and disposal of Tax

Court cases in courts of

appeals and Supreme

Court ./14 2

16. Receipt and disposal of

refund suits filed by taxpayers in Federal Courts./1142

17 . Decisions of Courts of

appeals and Supreme Court

in Civil tax cases ./14 2

18 . Receipt and disposal of

collections, injunction, summons, erroneous refund,

and disclosure cases ./142

19. Receipt and disposal of

insolvency and debtor proceedings./142

20 . Receipt and disposal of

miscellaneous court cases,

lien cases not in court, noncourt general litigation

cases and appeal cases ./

142

21 . Caseload report./142

Cost of Administration

22. Obligations incurred by the

Internal Revenue Service./

143

23 . Obligations incurred by the

Internal Revenue Service,

by appropriation activity./

143

24 . Quantity and cost statistics

for printing ./144

118 119
Statistical

Tables
Table I .-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas

1. thousand, .1 dollar, ,

Internal averue regions, dis licit, States .

Individual flcom,, and employment taxes

and other area, internal

".~

"came

`` ` e t

(States represented by single districts indicated in

: .-. e

ollections

Carp . ..tum

nconan is. I

hot withheld .!t hh I d ad

tra-d L. nuoulmia l

s parenjlhes e : totals for other States shown at b ot- Total andikoiiall-va cri'm ,

I

Ild-,,e In d

di.bi T ab ,

retirement insuranc e

tam a

l '

tax I .

,

nxii'llace

r I

(I 1 (2) (31 (4) (5) (6) (7 )

United Suates, total . . . .. . . . . . . . . . . . . . . . 237 .717 .70 39.D45.309 177 . 193 .715 9.389.938 145 .236 .920 1.250 .859 1.315 .997

N orth

'

Atlantic Haiti .. .. . . . . . . . . . . . . . . . . . . . . . . . 47 .533 .936 9.982.429 34 .519,259 4 . 596 556 29 591 973 57 407 273.31

Albany . . . --------- (See lc) below) . , 2,484 711 411 31 2 .011 121

:

17 1 12 4

: :

1 111 82

4 : 281

13,49 3

A

""'a N ,il)

~ : 8

81 25

'a 3:

58

4 :3

1% 84

. .~7~ 37,

. "fi

1

4,12 4,177

Boston : . . . .

B,ooli ya . . . . . . . .

. . . (See (c) below)-

Buffalo1 ----- . . . .

. . . (San (I) below)

6 .51 3 .894

4 :111 G.2 :18B, 21

952 .9 6 1

441 :2818 13

960

5 .0~3 .940

3, 9 3 :171 :~111a

fill

796 .388

717 42 . :1131

06

4,210

2 :1. 64 :2 2

543

S 1 9

8

127 7.6909

04

39

2 . :21'133

4 2

51

Harlington . . . . . . . . .

(Vermont). . . . . . . . . . . . . 288 .758 29 .431 234 .752

11

249

"' .4 1

320

1

:7

Hartford . . . . . . . . . (Connecticut) . . . . 1 '

Man

""In

W below). . . :~ : : : : 22'. '7 ~ .183 13 2" S . .2'4 : 0.2'4 143~M'J2 94 a2

IS :

f ~124V11 1

2 .989 .378

13,171 171

41

26 .637

27,9

123, 39ol2

Part ... ~S a 33

'9' '

7 2 11 3 I~j 11

9' . 31111 382 399 :

(1 4

.0

"

Providence ---------- (abode Island) ----- ! :~ : :

Mid-Atlantic Regi. . . . . . . . . . . . . . . . . . . . . . . . . . . .

:~.

1,017 2

34 113 171

is9 :

99 7

I .cIll 11

8, :

51 8

1 1 11: . 05

1

Ila 83

1

4 . 47

0"

111 :77

2L 1

. '"

67 1

42331736 .21" ,

`7

: :

B lti.a... . . . . . . .

. (Maryland and D .C.)_

~: :4

765 50

7, :3

48

:4 292

5 '1, 886 :42 4 4 .4 . 3

3' "

139 .127 25 .0

14

k N I

87

.. . . . . .

. . . . . . .

Philadelphia to' .--_____~~_ ' -w ' -------- (See 1 .) b :Y )

"`

8 .753,91 5

'-1N A'7

1 :741 :11.7 2,

"

1s 737 , :311 :~121

I'D' 019329

159

5,217 .21.

5 .530,.32

4 .497

198'679

49,964

4 1 4

'

P

~ : : : : : : : : : ittsburgh---------- (See (a) below S 8 : 2 I . . .

72

4 .2al, G 507 .503 3~735,065 17,398 17

1

35 :

Richmond ----------- (Virginia)

3 860 862

419 .478 2 .703,731 111 .111 2 .111 12 63,694

1it . . . 'a

Smsth

.

.u

..a ----------- I --------- I ------

1 : 4 :4 8

22.91332.2453

545 .565

3,349 .978

854,409

16.902.982

37 7

3 .859 .199

7la :61 9

12.637 gos 0 .760

5 :41 3

Atlanta . . . . . . . . . . . . . 4 037 .365 643,441 1,113 .017 511 .137 145-21 5

~

2 .111 221 3

.

0D0

25

Buchin (Also Columbul . . . . . . . . . _ ... ) 00

(South Carolina) . --------

. :

9110,542

1 .459,432

741 .364

225 .513

4

1,577,

.2

1 187 073

31 7 ,

44 ,

22'

2, 12 2 ,,

1

2 .11477 1 14if : 1 7

h . 59 7

G, ., .,b..

.

. . .. . . . . .. Hart Carolina) . .. . . . . . . 5 .179 .552

791 037 2 :9 : 7

" "

51D 71 : 1 2,441 11 1 29 so 3

).ck.. . . ~Mliajnippi )

_ _ ------

885 151 125,841 711~255

199 .0

2 3

S.s, 5s

423

6

:

Jackvo-fli ;.~ ~ 11cridat------ 6 5 : : : :

Ninhaill-------- --- l'Incesiatee)------------

6 .

499 :99

0

2,111,2

112 .2D :71 7

0"'

5,108,376

U22 1 11 2

1 .556,0 7 9

501 17 2

3,464 .276

1 .07,461

50,01 5

2,550

38 ,

20,00 6

080

. . . . . . . . . .

Control Region . ,

Cincinnati .. . . . . . . . ..

i!

39:

T 7f

l

011 :67 D

5

7 .34got' . .1.1

,7:

17

2

.

' 71 " I 0

:

461 68

'4 74

3.4128 .068

'' '

86.0t59

2 7

193 .4 2

30

Cl,V land ----------- (So ( . (it) both .) . . . . . . . . . . 57S

Detroit-- Iichhf .n) -------------- 9

.151,453

14,948,744

1,131,f34

3,876,323

a 29 7 : 7 :I 7

10,236,987

ii

I 71 :1 7 5

.~39 .796

5 :113 :I.G

9,106 .743

32,1 4 1

is

N1 1

46,W

7 231

'

~

lhdi .n,p.1 Indian,) 5 711

I "

114 .41 4

IN 92

0 21

N

115

3 "

82

:9

23

Louisville .. . .

~`V

: :~ iff

3 145

~,2

544

1

:458 J60 345 : 3 89

f :DaS :

305 36 .705

an ,,, --------- - " .0"

~W

801,166 98 :720 6S8 .97

8 . . 11 ' 5' 43'

54

5 677

Midwest Regio n . . .. . .. . . . . . .. . ... . . .. . .. . . .

Astrid.. .. ... ... . .. (South Dakota) ... . . . . . . .

36.523.531

309,296

6 .283 .33 2

33 07'

27.370,606

21 516

a

: 4 4 .1f 2

83,776

..153 3 1 :1 6

74 '72

397 .068

- 3

207 :587

1 13

Chicu. ------ (See IF) pelow) . .. . . . _ ?

Des ma.- lhvvl )

14,971,083

1 . 173 4 1 1

2,M7 1:0 3

333 17

0

11 :2 61

. 04 2

1, 11 1 711

1,465,90 5

4 0

'1

7

1

9,337 :32L

1 .073 17

119 .21 4

7

59

BS :8

2

10 12

1

~ :: : : :

Fit go. . . . North

3 0 ~:5 2 6 4 :

16 5

25 9 :9 .9 8 : a t

3 6

17

4 :587 2

a

1 :73

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

Ormah

.

__ -------- (Nebrasks)_. . . . _ . . . .

4,368,538

1,447,159

1111 7 161 :15181 31 :114 :2 14

51 507

413 26 :411

00

2 .114 .29 f98 :128

51, -

724

2,1 :11f451

S

I

. Louis ------------ (M.'anufl) . . . . . . .. . . . . . . 6 .081,828 3

a .. '

4 131 31

1 M '' 1

3 37

7" '

711 .211 33,81DO

St. Paul, ~ . . .. . ... .. (Minnestota) -

Springfield . . .. . .. ... (So, (b) 24 .62'8' : 420723

:.

725 73

447 .939

, s5 : ~

7

9

1,829 .857

421 : 2 1

412 .926

2 :9 :8

96 57

1,401,077

if

3 : 6NO

24 .509

So . 12,223

th-st fal,glon . .. .__-------------------- -

Albuquerque.. ... ... (Now Mexico) ------ __

23.166.589

529,796

SU . 78 1

43 .014

17.403.661

4E5 .783

3 .736 .97

102,3957

13.442 227

360~ 1 19

103 .117156 Lza 58 1

3 :2 3

All tim- X. (I~ below) --------- -

C as -

bay W" _

: : : : : ::

D I.... . .. . .. . .. ...

Ise, (1) b.60--_

6,508 .865

5,2212 :74,131

64

114f7 :11, 7 1

809 .516

4,431 t j .93~117

3,895 :484

f .05482 .7566

8 .9154'

3,378 1 :521

14

2,958 .'94'66

5,44 5

16,7741

31"2S

30 13 ' :5133

Dan,.,.

... . . . .. . .. (Colorado) ------ 3 .638.051 212 514 3,GE9 .382 349 .914 2 .693 '76 11, 271 lf

Little Back ----- talk.. ... 315

New

0

998.81 3

2,276 .937

:

2, 549

306 .133

1 .703 :.52~5

835 7 M4 "

2 ' '

500 :82

5

1 '8 7 13

, 1 1

1,34

8

:

278

13 27

Oki C amma i 0 iflum.). . .. . . . . . . . .

k

2,178,990 215 1

8

46 630

i 3

328 .294 :1 23 :230 137 :9M

Wic hita (Kansas). . . . . . . . . . . . . . .

Waste, . Region ---------------------------

1 .657, 994

30.925.374

:

2 f, 699

3 .533 .265

:

3A 2,630

24.733 1108

352 .344

4 .567 171

913 .81 1

19.8114.359

167 :26 8

as 644

9 17

181i 2

,

: : : : :

Anchorage, . .. . .. . .. (Alaska) .. 246,719 16 .129

~

224 348

:8

32 91 4

"

13

(I it aho) . . ------------ - 1 '

Bol' . ... ... . ..

I

HeIm .. . . . ... ... . (Montana)

111 3a,:427 0

59

24

315 2 .11 :

16:7 3

13 3 3f2

2

408

301,111

:

3" '1

4

107,137

Wf

303

13

6

:

12

Honolulu . . . Ianvxii&,, . . . --- - 731 3 1 '

a

17 4

'' 0

54 50

. . . . . . . :5

~ , b,ja~. : : 4 38

Los Ange So.

1 . quis: .

38

1,1

'2 '4

9 .5a 4 : 2 1 11 191 7 .111 174 Vi 73 .41 4

Pho..i , - ~A,iion.) -------

Portland, :

Oregon) -----------

1 .431 .937

1 .945.925

155 .7

322,3732 1

IX5,825

1,545.376

, .038

33668,629

4.:

1 .194,70169

1,201 1

41

:415

: : :: 132 887

Rem, --------------- (Nevada) U .

fail . . . . . . . . . . . . ... . .

, ,t L k c `,

562

"

3

: .77'

6 7

11 :~11 a

23

441 566:7401

9 9

11 :1327

97 12

342 : 826

463 239 1,1461

3al .11 "7

S 2

a S : ~ l ai.. (. i below) . ... .. _-

Seattle .

. .

.

.

(yarnihin on) ,

I ' t

9 . 4 39,36 6

2, 119 . 1 1 0

922 .073

321 141 7,387,5 1 6

2,317 311 1

1,277 . 78

447 B13

5,960.78 7

f,871

1

101,512 3

'

47 :838

" '23

::::: ::: ::

Office of International Opm-ations

, , , 52

.

2 S. :

f74

7. ,:

"2

:

98 L 58 64 3 . 5 Z2 7:7DS

P-~ Othe . Ri .. . . . . . . ------------- -

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

614 111 :101 16

1

657

55 .516

220,

86 1

528,980

11 47

86

12

:32

2

432 :"001

.. .. . .. . . . .

3,522

459

7,246

Undatrit,, W

Federal 6, deposits$. . . . ...

,

1,131 171 11 211 1,098 368

------

1 094,96 9

--

13,128 37 1 Gasoline ubricat,ngoil .ande;~~iiii~K~~;~wti " I

23 : .33 33 733 :

590 :100 ------ -

- - I I .

slar ed to Go, a i nammt of Go,,

Withheld taxes a of federal ermal

0x . .

.71 0

94,45 'a 8 : : : ::

11

0

- 1840 :458 14,411 --------------

--- -

------------- - CI :xrmj account to, Laos, ta .e -avIitvon luel a it pul-Air For,, ad Navy ----- . . ..

I

24

I

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

I

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

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

F----------- - ------------- -

New York ----------

I a' to) P i-----------

naly vana- ----

M T:I I., - -----

122

lotals for states not shown abov e

21 .386,2D4

17,599 .555

33 .219 . 4 04

14,163 .123

14,050,469

11,773,596

2 .314 .12

3 a

244

s5

2

7 :931 :630

2L :30134 14'

7 :207

1,614,203

1 72 :418

'21872 118

23,644,595

111 :407

0

3 :7127

2 52

8,353 .941

21 :1181 8, 3:8271

21 91 :11

a 1

3

:2 4221

1 :41A

a32 : 'I'M

130:771 161 73a :~9 8

10 :7061~7 :702

as

6 :3 37 367

gas3

15

4

3 .821

32'..

216 77

2212

16

1 " Z 5' 02 44 :0

"1 309

77 : 5 so

84 all

62 :7138

Table I .-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas- Continue d

I I h thousands of do] Ix,,.

W.ml tax,,

Int .-I "Von be r.gon,,dilt

'

ictI, State, and other

vearr (States rl p,..ntnit b si l di t i t E

E-se taxes

t

"

'a , "ma"

, Distilled spirits taxes

r y ng e s r c s

indicated I, parentheses; totals to, other States

state I,, Gift le, .1 .

11 26 31

lotal

r

ad

p '

,hall at bottom at Uhler 36:

41 .ad Total

c l

e

"

1

d If Ric,61, 1,

Oth e

55)

by

afim, ; =1

(11) (12) c l. 31 (15) (17 )

United States, total------------ --- --- 4 .339 .924 636 .939 16 .572 .318 5.149 .513 3 .755.516 736.020 73 8

North-Atl,,tic Region-. ------------ _ _ -

Alban S ) b l : : :

1 154 as

"' . 30 :

1 75 9

- '1 1

y------- . . . ( ee (c e ow) -- -

637 .105 467.497 24 .422 il ~4 j I fifli 2 066 2 50

August- (Me, . j

26 1 ,8 65 107

1 3 , 3

:

1

7

' 2

177

. .

,

176

,

---------- ,,:, : ~

Boston (Ma

16 9 : ~ . ', 20

12

~1,7. 2 B.3 1,52a 2

'77 " 3

_

----- -

(frankly --- ------- (See c b. mv) i s :044f l

142 751

314 fW :,141.1 116 (]21

fal

111 1 321 7 1 1% Q7 4.11 ------- 1 - j ~ ~

Buffalo. . . b

(Sao 'c "' a .) ---- ----

,

101 ~473 24 .342 111 27

67,097

4D 1 17

6 ~ 65

3BB

~ Dal,

2 280 38

Burlington. ------- (Vermont) -------------- f!) . 7

N I

3 :1, I , , ,

4

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

374

7

H Itfh.,Id ~ --------- (Connecticut )

111n 11 11- S I 1 b

24 I 3

"6 : 3 73 12' 42 '58

2 .5 4 5

. .. . . . . . .

_. . . . . . . 2 136

13 . . . . . . . .

a ...t h ------- ~ ,, , ..g *

Part

2118 01 s 3 .25 3

18 739 1 3

753 1S :1 1 0

6 7

203 .6 1 154 .092

.

48 .188 P 81 5 373 20 3

nivid,111 (Rhode Island)

.

, 1 1

16 481

' "'

21 .403

4 0

17,6 333

3

DO

4 29

I

-, .- . . . . . .

Mid

. Atlanti c

utm Real . ----- ----------------- -

B ,a (Maryland and D C )

,

5871 .603 90 .'2 20

1 12 226 17 694

2. 4.1 1.:137 917 "

a

.3 :'1'2'~

9 2

646 .707

.. . . .. .

79 085

-_ _ . . . .

7 41

Sat

. . . __ _

11 9L

Z

81

1. .~5 68

News,

k . . _

'

. .

12 11 12

372

8 ,89 0

441 .2 1a 21161"2~111

237 .73 3

17 317

19: ..S

, ~

: 2

. :

134 2 11 (1)

P h iIad aii~li See (a) low

P tt b h S

S4:

110 21

:~'~

4 4 4

7' '

1,2 :,52 1 18 .

*611

183 354

116 :997

3,195

1 332

.~

469

5 7

t h1 Vr,gd ( o.

(a) help.) -------- -

R ., ..a (Virginia)

7

62.502

17 711 1 1 3

3S 1 :4s a

110

"I

s

" :a'

7a

17 1 1 14 1

.

--- 4 .141 3 1 .

. .. . . . .

- .---- (Delaware) Willicittal -

. 6 . :

3 3

3

.

.41s

.sf

as

53

: 7

37

4

23 : ,

la

~ it.

Sao 3 .

the It Region ------ - ------- -

Atl

91 :0199 51.613

.

2,10 4 3

' 1

245.422 101 .1144 __4:66) 4 7284 . . . A77D IS A (Georgia) anta -------------- - ---- . . . . . .

Birmin ham Alim n

54,070 9 : 57 1

31

: 2

277 .7 28,602 7,11 7

.

bk, a ia) ------------- - 7 .598 46 149 74

COIUM to (South Carolina)

71 4

,118

3

18 713

O a

136

.944

180 1

07

3 11 2

1

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

G,a,.IbI. . . . .. . . . . (North Carolina) . --------

,

65,861 Hs 54 S f .325 :.002' 40 .7"n'

1 .

159 106 53

f 3

~Mi,xa,ippj )

1 a s 'k ------ 20 2 "a 24 ' 318 2

. . .

.

. . - _ . . .

168

, _ 68 ------ jj

so a Florida) ------ - . c

N I Wife tTahhe,..)

248 .5 30 :111 3

I 2 ' '2

2al :759 f01 .614 ID,4 43 j§ 6v - 10, 942

. . . . . .

.

, .a I --------- - _ . 28 1 Z99 1 3

R .

. _

- --- -- ---- -

4~4 :~ ~ ,. ',.3 I SBN14497 '

:14 1

1 43

.,,, ...

-

3 5 `172 67

%

. 1 (See (it) below~ .ci 1 ~ _ -- -

d

91 :13 1 1 5 2 1 11 11 31 4

.

114 115

. 51 990

1 11 1 21

:

1 .275:~211

182 1133

Til f

1 167

1 .794

250

35

------- ~ I j, kId 1 1 . hile : : M a 1

D

O!tl,

1 02 111 2 5 :, ,

114 553

: 494

861

: .4 4

40

2~ :64 1 ,

A 4'a

.

13'

431 ----- -

, . . . . . .

. . .

Indianapolis. . . . . . ilndiana) - .

, 25 .44 1

12

" ' "

- .- ----- -

115 425 20 :4301 1132 a 0 :~2541 25~ :101 113 :238 1 :87 642 , 1 6

Louisville --- K,

---

~

45 :197 :273 1,111 114

,

614 21 1

, ,,

938

111 131 2"

:7

as

6

77

3110

I 11 1 :65,1 311 . . . . . . . .

Parkersby'R , ------ -

lAid R

18 .594 2,546

" :329 :330 :25

2

13

1 "

3 9

was

egion ---- - ---------------- -

Aberdeen (South Dakota) : : : : :

7 795 107 .855

587 :049

.2.233 944 795 .017 458.430 39~' : 1 34

2 .

502

----- -

--_

Chicago ---;__. (Sea (b) below) ------ -

Des Moim (Iowa) : :

1 88

1125. 1 1 981 8 1

: 76 a

: 8 93 6

862,018 184,57go5

5

178, 1 5 44,008 132 .925

. . . .. . .

.__ . . ------------ -

508 71"1

F o (North Dakota)

5 308

7 552 54

37,368 415 63

"

-

I

g _---------- --- _---- - 16 3

Mi -ken-------- fts-sin)

, 8

68 49 8,894

8

277 :2 .7'

140

156

7 "

11 9

6 .GD4

15 4

3,639

_. . . . . -

2 281

:: : :

8,

5 5

677

------- -

Oman------------ Mlarnki) . . .. . . . .

St. Lo uns Missouri)

--------

:

34 099 2 .440

3 93 11 946

N

07U : 511'41

:0

43

141, 2 41 .9'0462 ---7 _718 .

,

.. .

3 '4'

. . . . _59-

. .

14 2

St. Paul -------- (Minnesota). . .

(so (h) below -

J 7a 9 2: B

5 4

54 262 4 952

114,111 11 :311

15

is

11 1 3 :6a2 lf : ~67 f23 ill

-------- -

So . hwest egion

, 56 82,

435 6 561)

91,462

355 932

24~ 44D 7 ,

2

1' :

209,016 2,916 240 . . . . . . - --- ---- -- -------- -

A lbu ------

(New Mexico) --------- -

u"qu'

9 . .

" 3 ' ' 24

.

1 '2

249.392,,3 5 172 11

f

! 3 11 91 1 41 L .122 112

.,M

ne--- ~S 11 T 11171 -- --------

35 :.~ 1~:021 ,011 1 :8P7

:25 a

A

5

27 .216

. .

2 32 3 4

f :126

3 517

4

2597

3

Chl!yem 1 1 , 1 -.1

-

5 .622 1 .237 23,993 39

31 , . . . .

31

6

Dallas---

. . . . (Sea (I) bal.

Denver (Colorado) .) -- -

1

143 :493 141 27 : 301 421 177 3 1 174 321 . . . 211

. . . . . . . .

..-.- . --- _ 1 5

Little Back (Arkansas)

4 ~ s s

15 403 755

~47 :6,7

4

9 3 : 22,

15 2

a . . . . . . . ---- -

Ok 1mv Orleans ------- l

-

La I Stan,)

h Ok

, :

0,6. 7

&4 9

6,581

" 5

599

,

4

a

30,588 14,8118 15 154 4

543

OG 6

a

ome ------ -

K

w a

36,403 5,20 9 378 730 24a

: :

70 . . . . . . . .

,

3 - 63

4

ansas)--.,--. ------- - W,.t ,a f mn

38,67

3

799 430 3 :302 '1 :2 1

1 4

1 g __ ---------- ------------ -

99 71 17

A.ch.. . ge iAiuka)

. 61 346

869 290

1 .6. 52 1

09 3

1

7 77 411.!i2~

*

.

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

312 D7 L 50 is

.'a) ---- -----------

15,835 585

:

5 864

224

78

220

29

173

H ----- 4 8 .JVnW Munt .a .) --------------

R l 11 ii

10 .316 1,035 5,455 1 .244 1 .223 ------4. ~

.

1 152

. . . . .

6

2 9

ona d ---------- 6 1 . *a )

Los Angeles See (a)

268

35'a2:62 8 ' :787 R : 3 ' 4 A3 3 2

. .4

2

,

165 5 74

. . . . . .. .

1 .. . . . . .

Phoenix Winona)

4. 25 8

33 581 4 176

53 .6

2 31

.86: 2.3 12 1 2 7 37 1

70

. . . . . . . . . . _ ---------- -

88,680 170 734 1 2

Portland . .-- . . . . . ~O, Ifa rl_ --- -

R

, .

31,823 3 .421 1

2

2

3

4 :.3

fC2

1 :182S

4

1,7 3150

2 5

2779 ------ -.

.

8 355

. . . . -

6

135

7

mu_ N V. . l. ~

Soft Lake City Utah), . . ------ -------

1,31 .

' :"4Is ' 792 409

1

7

R3 7 3

7

---------

,

---------- - ------- 72

San Franci,ce----- (See (a) below) -------- -

S tt l (W h

I

,

248 .505 .425

1365 :845

419

.196 298 .2 .2 __jj:,jj . . . . .. 7

Officeea e---------- - as ington). .

747 3

of ate national Operation$

1194 :791

1

:08 9

541 7

178,462 70.164 22 1 1 1 11 11 1 63 ] 20 165

1

N . . .--- ---

into Rico .- . .-- .-

29 6

380 165

111. 1

. 70

6

151 :121

s 526

5 :50 5

95,505

s: as

493

. .

1.22 1' ,

One.. . . . . . _ -----

Undistributed19, 1 1 .

61 32 16:103 (*) . . . . .

. ...

. .. .

(1 )

F deral ta, deposits -------

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

53,906 ... . . . Gasoline lubricating oil, & excess FICA c ;mi h

T ransterred to Go-ament at Guam -------

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

Withheld taxes of federal employees -------- C, - .,I agacca .hliar Excise taxes-aviatum fuel

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

.

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

and oil-Air Force and Navy ------_---- -- --------- 24 . . . . . . . . .. . . . . . . . . . . . . .. . . . .

.

.

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

Tual . far state, not shown on,

,

~a California----------- 17 .134

267

10 1:1 3 1 :411 11, sg gg 42, . 57a 7 1 jg 349 5 3

y ---------- -

350 a 15

IlD 1 ----

.243

111 314

SL ,li f

101 744

:4.

1 072 041

4 , :o

329 446

0 3

2

4 :~ S 3 1

I : '1

:

1 4

' 4 4

, ~d) h w f

: 7

. a

: ,

,

1 115 111

.

'

14

"

H

I

H (33

2

110 :057' ,

1, 7 14 :23

. 1'

1

1 1

a

3

2

20 3

6 . '

2ii

Pe ayl me------- :

I) Texas v 224a 47a 2' 'S2

29,84 7

53

2 7 :01 f11 111 11 1 111

5 :

4 ~1 al ~ 1a

-

-- ---------- ,321 1,511 .753 106 .532 27 :5 37 3 :, if

470 131 123
`06

124

Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areasContinued

In thousand, of dollars .

Alcohol taxes-Conlinued

Int,,n,l ., ~1-no (Sug region distri isc . States, and othe r

six represented by single districts indi .

Wines, cordials, adc ., taxes Bear face,

cated n parenthein' s ; totats for other States show n

at bat to, at table) ad

I `Z

I in "steps

O"up ,

Total ~ ,fcollec I y C'sionada.) Domestic

"a

na l

Uses

T:i s

I

b(ca lul ac tads) y C

stood

Domestic-I

. . . i s

(I f)

(19) (20)

(I I ) (

2) 23) (24) (25 )

United States, tot,I ----------- _19 .556 20 .290 167 .423 4 .952 1 .201 .442 7 .897 1. 190. M 3 .459

Nmsh-A I la,lic Region -----------_--_-------- 39 .426 8 .616 30 .586 224 130 .98 4 .411 125.991 4 is

Albany ISeerl.Cl .thelow l

A '

goals ----------- Mai . . . . . ...

11,4

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

490

88

146 1 .4~121 1 .4311 4

211)

Boston ------------ IM.. chuiratut--------- 3,027 1,1114

1 "'

11 1 1 .132 1,12' 1 1 211 3

Bnoxil, t 1 o . . . . . . . . . . See () below). .

8 ufal . . . . . . . . . . . III,arm1,)nbal1w)_. _

B . Ild ton . I) . . . . .

'

4 .23

'

Ig is

a t

33

_ _ _

. . . . . .

19,8 4 :23

1 12

(*)

s

28

33

5 ~ 4 ~5

20 :356

5

... .. . .

--- ,*... ... . .:..~

5 , : 3

. . . . . __ 20,25'20

f1S

104

; 5

H

.

to d . . . . . . . . . .

I arm eVit ' al v 3 .. -_ - -

3 .

111

8

407

:::

.. . ' -

373 34

Manhattan . . . . . . . . S,. ( kh l. j: : : : : : : : :

Portsmouth----------- (No, Hampshire) . . . . . .

I 11S

6

6 80 2

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

..

4

63

2

3,194

17 .301

j 68~

. ...

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

17,273

I

211.

Providence. .. .. . . . . . (Rhode Island)

3 ------ '

3 14 98

Mid-Atlamitic Re Ion -------

Baltimore_ -

16 .333

2 111

i :69

2,119 188

200

11

:

1 73 98 1

2 3 11 6

444

14,

1 7 3 T1 2

2 3 111

325

33

Philadelphia IS, "* a . s

IT :74.

2,799

.

------------ '2 :78"1 7

1

.

18

7 ~ :

19 0

41,055

__ ------ -

---------- _

, 1' 3 : ,

41

..

3

1

I Pi Usbuffito '. . . ... .. . (See (a) thelow). . . . . . . ., 19 -----

9 IT " 43'

fS

:30 1

Richman dW.: : :: :::::: Iluilind .). . ... . . . . . . . . . .

Sao Wit'!' file Delaware) ------------ -

th ~ iirt Reg . ri---- . . . . . . . . . . . . . . - -----

1 .11

4.967?

_ : : : : : : :

1 .464

1,72 7

-------- - 1 .151

IS

,Z51

20 : 6 3

135 .S62

20,5775

134 .550

88I

A a', , J : : : : $64

IG-to. . . . . . . . . . . .

` _ '

677

546 111 21 .1 1 1 11 191

6

7

Bi1mir :: : :: : :: : : Also a) . . . . . . . . . . gha m

3 --------

3 7 7 : ~

--

7 7

Colo radius . . . . . . .. . .. (South Carolina) . . .

Graii nsbol~_ . . . . .. . .. (North Carolina) .

463

165 ... .. . . -

104

IG5

49

40,389

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

410 283

4 9

1 0

Jackson . .... _. . ----- (Mississippi) . . . . .

2 - --- -----

2 97

...... : ~

1 1 7

ackiltinville- . .. . .. . . (Florida) . .

Nashville, . . ..... . .. .. (Tennessee) .

. . . . . . .

3 .550

7

1'464

-----

24 6

(

1,840

7

440 :69 2

3 200

44 9

_. . . . . .

ili,B2

3 IT "'

91

Can list R. 1

Ciminnali- : : :

5,819

890 ..... .

3 .45 3

722

6

93

111

.

122 040

31 174

. 66

--- . . . . . .

1E42L

3D 152

2 11

C 1-liand . . ~ _ ~ .. .. .. (San (d) below)------ _ 1 1

J .filif . 31~ 74 8 :88. . . 8: &49

1 .

Delimit. ... . . . . . . .. ... (Michigan) .. . . . . . . . . . . . . 2 .192 550 1,390 253 41 11 379 49 .259 2 3

Ilanhims) . . . . . .

L,dl,v Is_ Kentucky) . . .

65 3

465

1~10 4 1 89

5

:

IS 3 1

8

14,92

1

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

18 .290

14 .1173

2

9

5 1

Park burg : :: .(WasIVi(gjnja) .: : :: : : : : :

.,f

act Region _ I.-. . .... ...... ... .. . .

Aberdeen . . . . . . . . . . . . (South Dakota)----------

4

7 .57 12

.. ... .. ....

.. ... .21377 . . .

.

. . . . __ . . . .

. . . . . 1 :104

, __

4

90

2

75

319 .02166

:

_ . . . . . .33. -2

---- -

3li-i52'

------- :~ . . .

7

5351

2 6

C h i,.g... . . . . . . . . . . . . (See flat Inlowl.

Do, Main ., . . . . (to..) ---------

5,02

64

.. . .. . 1,630 . .

'

3,37590 25 1,400

Iss

22 i

----- ------

1,11. 0. 2I T1

F, go ___ . . . (North Dakota )

Mifwaukee. . . . . . . . . . . (Wisconsin) . ... . .

3

442

i

363

------

54_ 251 149,66185

6

Too ---- fo l-4i, .2 4 Odnalg ._ . . . . . . . . . . . (Nebraskat

4 -------- ' - '

4

4 1- ---------

6 1

' '

2 1

St. L W Illisno,ri P:u )

St. 1. Minneinitit).. . .

1 .76 5

254

iii

201

F.0i

44

9

1

5 :543

31 112

('j

3

7

9 5 : 4

31 11

So . Sprin!,fiReld .,. . . . . . . . . . (See lot below) -------- - 1 3 '

thw & as cm . . . . . . . . . . . . . .. . . .. .. . -------

1 1

1 .982

. . . . __ ,

878

2

507

S

598

:

T' 258

187 .541

. . . . . . . . . . .

.

330

31 :2 3

6

196 .219

2 2

99 3

Aliniquento ------ _ five* Mexico)- .. . .. . -

a

3

1 2 2 - ----- 2 Austin . ISee (1) below )

1,000

(. 1 373 45,042 34 0 Wye ing) .. . . .. . ... . ..

1111" S,, (11 below). . . .... .. .

(*)

173 ------ 173 32,7808 ----- j2 .67 -----6

a

10 4 I

Colorado) . .. . . . . . . . . . ..

Little Rock ., : ------ jArkimle.) . . . . . . . . . .. . . 517' : :- : -------- 5021

10 13 .011

36

. . . 93019

. -

4

306

New Orleans ------- : : (Lo

u

islana) . . . . . . . . . . . . .

Oki honna City-------- (Oklamonda) . ... . . . . . . .-

I

26 7

7

250

. . . . . . . .

--

1 1 5

7

16,355

' 2

103 16,047 205

113

Wilhit.. . . . . . . . . . . fK.mas) ---- __ . . . . . . 4 . . . . . . : : -------- 4 95

95

: : : .

W.Varn Fix&. .. . . . . . -_--------------- --- 116 .543 2.573 113,17 1 796 132.510 1 .531 1 .636 344

A a

the

"" -

.:: : : : : : : _ : IA1,11.1 ---------- -

Bell,- I relief . . .

2

23

1

-----------

1

23

2

2 1

1

. ... .. . ... .

--------- 1- 1

. . . . . . . . . . . 21

Mariana)------------ 2

1

1 0

2

. 1 9

Handful- HxZii)--------------- -

Los Angeles . ~ . . . . . . . . (San (a) b .low)- .-

7 1

5,392

68

1 .245 3,946

3

111

1,604

1 3 514

134

908

1,468

51 114

1

x

P1moi IA~ixdda)_: : : : : : : :,: : : : : :

P

. rN an 0 gun) .

. . . . .

5 1

137 62

O f

38

S

136

2 : 2

Do

6 .976

(- )

8

2 :190

6,949 20

ReS. . . . . .. . . . ------- ifle,ada)_ _

It L.kl City

61 --------

1 245 245

Sao -------- See (x~6 ;fow ) -

1W.,lo,

as Um

110 .060

"1

' .0 7 .261 "'

14

441If

2

1 33 " 47'0 :'30'7

3

411

:314

47 24

1

'0 "1 1

Office ofla perati Pis . . .. . .

mid Rico .. . . . . . . . . . . . . . . . . . .

. .

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

15

15

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

. . . . . . . . . .

is

15

----- ----- -

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

6

6

.. . . . . . . .

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

6

6

-- -

Other' . . . . . .

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

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

adi,ftibuteifFederal ta, deposits-.

Gasoline lubricating oil, and excess ~W~iijoh v

Transferred to Government of Gus . . . . . . .

: : :,- :

. .. . . ------

: : :, : : :, _ :

-------- -

: : :

:~ ----- -

: : : : : : : : : : :

Withheld Uses of federal employees.---------- . .. . . . . .. .

~

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

Clearing account for Excise, linni-tvi" inn Wa l

add oil-A ., Fall. ad N sly -------_--------- ------------

I

------ ----- ------- __ - ----- . . . . . . . . . . . . . . . . . . ..... ------ ------- -

I.) Calif

.,

m ------------

b) Illiand .. . . . . . . . . . . .

(') Nmv York.. . . . . . . . . .

fit) Ohl .. . . . . . . . . . . . . . .

Ie) P ansy vninda.. . . . . . .

1) T:

'_ -

. . . . . .

Totals for states not shown above

115 .452

5 .036

32,327

2 .504

2,818

1,174

2,316

1,630

11 :12f,4

----------- 627

112 .695

25 4f3 3 .11 1

1

:038

2,790

441

34

1 " 142

54s

"

:Sal

32 If

113~ :12'

.62

17'6 a:18122

1,341

2

22

3,08221

71

32 : UP

11 :17

39 000

' 6

.321

7 7

. 'SI

211'0

375

40

1 7 1 443

f

I

I

Table 1-internal revenue collections by sou mes and by internal revenue regions, d isitricts, States, and other a reas--: Continue d

Id thousands at doll, is .

Internal revenue regions, districts, St

le"

card the, ,a., I (States represented by singl e

districts, indicated in p... nth.,,, ; totals tar other St ate, shown .1 bottom of table)

Tobacco taxes

Total cis., a

.

Cill" . a other 11

(26

1

(2;:t (23) (29 )

United States

I

total -------- ------------- ------- - -------- ----- --------

2 .276 .951 . 2.221 .019 53.794

__

21137

Noi-th-All,intic Ftesnon----------------- ----

_ ---- -----

1 .159

218 113 1 7

Imay

A CC5iirW : : :

a :

54

. . . . . 5, . . . . .

August (Ms.

I,s, ,c

. . .. . . . .

. . ~)

16 3 S e fc below).

. . . . . . . . .

:

.2 10 2

. . . . . . . . . . .

offal S e (c) below) ---- -

Burlington- - ---------------- w-unil) ----------

2 2

H

.

third -------- ------------------ - (Connecticut)- . -------

-

h

------ -

M tt

22i ---- ----- P.,an..I ln, t N: ISee (c) below)--------- - --------- 698 207 67 42

.. ew Hampshire) . . .. .

Pnoviderc... . . . . --------------------- (Rhode Island) .

(*)

N

.

-

~3 i:i

.. .. . .

- . . . . . .

Mid-Ati.atic Rest.. - . . . . ----------- --- - . . . . . . . . ... . . . . SS8 .

189 537 .Z67 20 5417

. ... . -

B:Itim re 311

--------- -------------- I lif~na l "I ------ - ------- -

M:

63 . . . . . . . . . . . . . n I

. 62

r a _ - : :

w

Y

wuk --------------------------- N ---- -

Phil d l hi a e p a . .,

161 6 it s

- ------- S a (a) be:..) . . . .. . . . . . . . . . . . . . .

Pittsbur h : : IS b

1

20,164 4 20,160

(* )

g - .e (, elow) . . . ... .. . . . . . . . . .

Richmond ~:~ : ------------_----------- (,its

1

.1.) -------- ---------_--------- -

Wilmingtow -------_---_------------ - (Delaware) --

98

537 .702 537 .223

98

Sao ---------------------- _ . .

322 W

thein't Region -------------------------- __ . . . . .... _ .. . .. . .. . . . . . . . . . . . . .

-

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

1 .202.128

--------- -

1.194 .966

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

16 3DO

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

961

Atlanta--------- - ----------- -- . . . . . . - (Georrg .)------ 13f

,

Bir ingluand----- ----------------------- (Alabama) ---- -

C lTri

1,90

o ud ------------------- - -------

1 .10L I:I

(South Caroluna) .. . .. ..

G-astanD ---------------------- ------- (North Carolina) 461D

188,'2

. . . . . .. ....

... ..

735 3 .(714186 ------ j6 4

la0son

- IM',"i d"i"i )

Jx,kyadWW

---: : : : :::

:_

i3i _iji~- ------ ------- 8 1

Marshy,I Is ~ ~ . .... . ... .. __ .. . . . . . . . . . . . (T

l . . ......

379 . . . . .. . .. 4 37 5

Centra Ralf. . .. . . . -----------------_------- ---

- Ci i ti ; ; -

503.113 498.649 4 .381 8 2 nc nna ---------------------- _ ------- (S - -

Cleveland ... .. . . . . . . .. .. .. . . .. . . . . (d) below) ---------- --------------

ISe a

6183

gm) ------------------ 4 68823 . . . . ------ - -

Detroit------ : : : : h ----------

,d

5 . . . . . . . . . 1 3

iada)

-------------- __

1 ndiammolis --- (1 n ... ... . .

Lo isville- .-- d Y

477

501,560 498 6 9 2,834 47 7 ---- j3

Park a We, Virgin er bdt g 305 . . . 305 . .. . . . . . . . .Mid areat

Region -----------------_----------- ---------- -

Ab .,deaa-- . ----------- ---------------- (South Dakota)- .

50

. . . . . . . . .

10

.

4D

Chicago ---------------- - ---------- (See (b) below) .

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

ones Moilmis .

. . . .

fi ,

----

.. . . .. .

4 29

Fa;go . .----- North ---------- i . . . . . . . . . . . . . .... ------------

-

Mi Waukee ------------------ __ ------- (Wisconsin) -----------------------_--- -

Omaha--------------------- ------ kis

I

7 6

Miscou

S: . Lo .1 _----------------- : ::: : i

F)

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

S . Paul- -------------- ------- ------- (Munne

wta). .. . .. . . . . . .

S P'

Son iniff"Id . ------------------ _ -------- (See (b) thal. .) _-- . . . . . . . . . . . . . . . . . . . . . . . . . . -

thwart Region ----- ------------ . . . . . . ... .. . . . . . . . . . . . . . . __ . . . . . . . . . . . . --211i - ----------- ------------ - ---- -

Albuque que- ------- ------------ ----- (New Mexico)-------------- -

Austin --------------------- ------------ (See (f) below) . . . . . . .

Ch everne -------------- 11imminig)-_----------_--_---------

-

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

--------------- 3 -

--

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

Dallas.. i

f

S dd 'a ).. .

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

- -

Denver---- . . . . . . IC.lo,si a w .. . .. ... ..

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

Lit in Rock --------------------- - - IA1 rise,)---_-------

new O'l- ----------------_----- : : : :, Lokisiana) . . .-.

------- __ . . . _ .. .. ... .. . _i~

. .

. . . . . .

. (

.

.3

.

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

. : : : : :

. . . . . . . . . . - _

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

Oklahoma City --------------------------- (Oklahoma) ---- ---------------- _ . . . . .

Wichita------------------------ -------- (Kansas) . . . . . . . . --- - -----------------

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

---------

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

Wait axis Region ----------------- - --------------------------------- -

Anchorage ----------------- ------------ (Alaska) _

Raise----------------------------------- ildah.) ---- --------------_--_--

M

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

M

-- . .

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

.

. .. . . . . . .

. ..... la"a

. . . . . . . . . . .

. . . . . . . . . . -

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

Hardin w ii) ----- - -------------- . . . ...

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

6

Los Angeles --------------_--------_- (See (a) below) . . --------- 15 So

Phoenix

------------ ----------------_- Afixod .).. . . . . . . . . . .

Red . Il,egor,l . . . . . . . . . . . : : : :: .. . .. .. . . . . ..

Nevada)-----------------

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

- ------------ - Sell Glie City ----------------- ----- __ (Utah) . . . . . . . . .

San Fanci 0- --- ___ --------- . .

. (S a

. 1.) below) _--------------------

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

--------- j

------

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

Sindtl e

.

. . . . . . . . . . . . . . . . . . . . . . 1- . . . ... ( Washington). ------------------------ -

ffi f i i l ons 0) --_------------ 28

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

-

O ce o Internat on a Operat

PuerIo 111 0- -------_------------- ------------- ---------------- -

" . . . . . . . . . .

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

0

the

-----------

. . . . . . . . 11 96 1 2

Undistributej: :

. . . . . . . . . . .

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

F sorrel tax dapoxitl-_ --------------------------------------- ------------------ -

Gasoline lubricating oil,and excess FICA credits'-------------------------

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

Transferred to Government of Guam - --------------- -

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

-

Withheld taxes of Federal employees ----------------------------------------------- - ---- . . . . . . -

Clearing account for Excise ta.es-annation fuel and oii-Air Force and Navy ------

. . ---- -

Totals for states not shown above

W California ---------

I,b))

---:: :- : ----- : : . . . . New .I

(it) Ohio . . . . . . . . . . . . . . . . ... ... .. . .. . . . .

(s) P-aywo u--------------_------- (,)

Tax- --------_-----

98

33 765

76 7

20,26 3

213

3

216

. .. .. . ... . .

4

3

18

4

123

764

20,258

204

77

29

426

3

I .,

6

125
I

r

IS

~lh

,

126

T ble I .-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areasC :ntinue d

In thousands of dollars.

Manufacturer's ealse taxes Retailers' excise fare s

Internal -trox, region, . districts, States .

.it Tire, Motor Non .

other areas.

.

IState, ,presented by 1,single di, . ". (wholly vehicle Non Co ..

tn2smilics red in paatntheses ;~Wla for t h

St. shown at bottom of table) 1 .1.1 Gasoline Lubricatin orI g

. at,.

or in part

.1 rubber) ,

urner

chin.,

bodies

"it

Other I' Tct,l

Co.

e,c.a l

aviation

Marcia [

aviation

fuel other

tub e,

, .d . .it c, I ,d fuel than

,,a

-

cira., , ,

rubbe a, asolme gasolin e

r

(30) (31) (32) (33) (34) (35) (36) (37) (39 )

United States, total- 5 .395 .750

-

3 .927 .5 3

-

103.1 4

_ at

4 .04 2

-- 485'601

65 .477 368 .372 10.246 23 .613

No,th-A 1-tic Ratio. . . . . . . . . . . . . . . . . . .

1

32564 10 7 .578 _)07 169 21 1 1 .719 1 1

9

11 111 If 1 .176

Albany .. . . . . . . . . - (Sea (c) below) . . . . . . . 7

IN'

. 7 .

1

11 93 2

57

:

3 431

1 :6,2

1 1

62

August ------------- (Maine) . . . . . . . . . .

scale, . . . . . . . . . . . . . . (Massachusetts) 454,578

:, .~

39 .582

22

193

485

1,502

2

77005 3 .5257 3' :23'

70

31

92

'2

'3

Brooklyn ----------- (See (c) beloaf__

1 1 '40 ' '1 3

148 10 .904

1,59

0

115 1 .420 52 205

buffalo. . . . . . . . . . . Sea ( I below). .

Ru :I n 910 --------

4 3 :692

1 172

21 :l0 8

1 241

1257 7 20,47797 1,15S'1 111

64

5,11

571'

1 . 5

17

6

,, ; a "1 1

(Connecticut) -------- -

'

it

:28I

167

' :

396 14 128 .811 39 1

~

25 .669 2,628 150 7

1' Month t (See (c) below)------ -

Portsmouth (New Hampshire) - I . . . . .

28,395

1 312

17

1 07 3

111

415 6,451 4

72

:93412,518

39

2,469

718

3

24'

313

31 Provide... . . . . . . . . . (Rhode Island) ----

:

1 1 6

3

2 :

00

23 377 103 246 1 1

Illid-AtUrtic Region -------

O.Ilinm. . . . . . . . . . . . (Maryland ..it D.-6.

791.949

129 .429

629 .

83,151 M '19:

366

47' -37770'

2

1 ~'J . s

-3

5 .033

257

42:057

" 1"

1

. 00 6

''

3 .59

Newark . . . . . . . . . . Ilw 63,0211 IS7

'3

~ 57 88 2,376 9 :279 -9 .548 3,531 7 .. 5 264 1 .565

P iladelphis . . . . . . '. I.)

. . . . .

If 357,572 268 .138 6 11 23 111 11

.91 1 2 11'7

1

"

P, luni'lit . .

. ~Sa . (1) tu,krw)~ ----- -

Richanound.----- Vulmi .) -----------

223 .4953

17

.' 7

'04' :97 .

8: E

~ .3

4 :3 33

877

4 17 1

1 :332

IS

111

1: 411

5.233

251 4

141

1 .320

: : 211 Wilaringo. . . . . . . . . . (Delaware) . . . . . . .

S th t : '

773

171 955

676

130 999

' "

.2 ---jKlicii- 7 9611

7

. 867

Is,

3

1"

I

ou a as _

Atlanta a --- -

.

11 171

.

11 114

.

I .C40 1 :317

1 .

5,459

.

192

':

6 19

61

1 1 .2 3

51

4 7 Bir Aabasa). . . . . . . . . . . .

1 ~

8 20

3 .0 :696

114 2JIM

6

. 4

.11

1

11

3.

817

~ 1 4 1 112

C., : : : :: : : South Carolina) . -- -

am 'b .

1 7 7

8

14 6

14 7

3

-

3 2 1 .9 3 1 3 . 37

2 . 1 91

:

:

Gle ns o,o. (North Carolina) . .. . .

Is i

M i' '''Ppl)

, S

33

1

2 4

' 1

1

:5

.

4

' "

4 7

3

2,71 3 "751 2,014

'90 "12 21: '311

252

1

3'

434

4

Jacks"a ~ ll l rid, ) 22 :27. 15 :612 1 0 1 1

18

1 11 7 2,280 7 527

2

5 7 A

T

Ten . . .

N., re".

Central Region '"'Ill --------- - 1 ... . . . . . . . . . . . . . . . . - --------- -

26,256

1 .03D.719

lg, .g&

347 .998

1 9 6

7,251

2 :

741

4118 .393

3 : 2 , 7

185 .337

14

1 .68

' :

97 0

44.571

204

996 2 .124'02

Cincinnati. . . . . . . . . . (So. (it) below

21 427 '7 .. '2 3 ' ' ' "" .. 3 7 '1

142

C ,Ind 1'. "10 '3"

.1 : : : : : :

"' , ~ d

1 1 0:333 170 :7- 1 97 6 4. 7 .545 IS : 401 650 . 5:1 11

5

7 776

D

.1,01

:: : : : : : : : : Michi j ..) --------- -

1nit ia Rta-M-[is. . . . . . . (i .di,n .),, -------- -

7

'414 :1'26!

53, 7

12,41

1 .62 4

1

92

2530

12 D :1 1

909

690

211

7 .502

1 417

319

211

394

Louisvil 380

'a

----------- (Kentucky) ----------- 75 .701 71,219 2 3 .8 337 1 .87

a ' : Its TR

21 1

.. . . . .

tbu,&. ------ (West Virginia)----- -

Midwest R eglon- : . . . .

2 97 6

lif

2,21 4

537 937

3 2

11.627

229

12 .6 52

fit 49 9

. 20

3 a.

982

1 :77 6

57 595

66

1 .246

' 3

3 .11

3

Aberdeen

Chicago . . . . . . . . . . . (Sea (b) below) -------

4 479

410,723

:

3 960

300 .909 8,3772 2

1 1

7~214

9Z, 48 3

'34

1 .119' 211 11:07 . 132?

3

7

52 6

Des Moines ~Iew .)--------------- 20.860 14

201

100 2,681 3,13 1 43f 1,114 1 4

1 I

S

Falgo. . . . . . . . . . . : North Dakota ) Mi woukee .. : 3: .11 3

71 "

:~

3 3 1

13,114

? 4

218

31

384

1 ~

10 .726 942 5 .2293

,

7

149

2 2

3 4 Oman- ---------- : : 7 431 1 470

4 ' 3 2'

2

J1

78 4,032 i ia

2

3 1 1.

S Louis~ . . . . . . . . . . Missouri) . . . . . . . . . . . .

St. Paul .- . ------- (Min-ou)- --------

1

76 : 82

59 .370

:3

61 72

51 .58,

f'o1 . 2 .11 1 .6 1.

214

69

3

1 110

224

4,111

8.17 2

6 .560

l

96

199 I'la4 o

Itrin,fiell- (Soe (b ) b J *) _ 11 06 2 413 "

5

114 476

, : 2 5

668 3,397

135

12 2 Southwest . . ! d ~ : : : : : f . :

948 932

1 :4

. 755 U 47 .9 7

1

23 .059 20.44

'

1,974 101 521 2 .424 7,27 7 Albuquerque ~'1 :.w(1ebe,,u.)_'_._. : : . . . .

Austin . . . .

. r in 1 . 4,499

.15 756

4 .376

975,101

8

30325

50

8 .398

3 1

2 .056

4

77

:

3 75 5

31 11

110

728

9 1

3,178

Cheyenne- . . . . . . . . . Wyoming) ----------- 20,704 20,153 4 17 25 5 :

150

45

3 4 D - - (San (0) below) ------- - 311:371 4

IS

292

1

:125.

30

8,731

3s

1 .444

12,388

7 .51 0

2 .949

329

583

22 .4

3 .7861 7

459

164

go

3

47 0

Litt], Ruck 11,912 35 .1. 4115 13 1 . 121 773 - 1 311 114 11 1 New Orleans (Louisu,na)-

Oki-soma City ... . .. (Oklahoma)- _~ : ::: ::: : 31'1, I .5'4'3 3412"JUf97 V

3

7,QO

1

.

489

27,

4 :431

Is

111

4 :47 4

16,758

3

230

39

S9O

1 .473

Wichita .------------ - Ka .-) ------------ -

Western Has on . . .. . .. . . . . . .

5394 1 :96 7

980

40:285

417 9101

13 .423

512

19. 9 2

439

1 :14 6

83 035

21

6.085

4,206

61 .465

194

2.349

28

7

3 .27 3 An,ho, .I, . .-.-.-.-- (Alaska) 1 8 1 51

'i 1 i

1

on h 204 100 26

~11, *) --_-_--- -

He" Moner")------------

1,9 3 2

89

1 .6 0

763

1

2

132

66

S

41

101

11

.

2 30 5

110 97

5 7

7 Honolulu . .-------

Los Angeles. - ~ - .: : ~S:aw e(aii)bie1_6Iij: : :: ::: 173,354230 143,20122 4,41 01

2

13 .70&45

IS

10 149

b

1'995

218

15 626

26

5,581

4

- 3,088

Phoenix .. . . . . . ~ ---- (Arizona )

Per Hand. . . .. . . . . . . . (Oregon)----- 2114`5 1 .9,2

(3'1

6

1 .401

283 1

i 1 1 3

17,367

3

49.

1

:

3 .722046 22054

20 3

14 1

Reno----------- --- 4N . . . do)

Lake Ci ly Itlh) _ = . .

l ''

1 75 6

: 142 1

:68

2 17'

27 6

72

-6

258

1' )

2,606

1,09

11 3

1

52

'5

34

4'

~ l

s : ~ l" . .".0 --- Iee, (a 277

. "S

211 13 1 1,911 2

""

1 30 2 51 1

:,

24

S3

-4 .291 1,6,16

0 C . . .. .. (Washington) . . . . .. . . .

. IT 'Deal op. '. I Ion ------------

55, 67

2 .8512

8 :,5 2

38

,,

21

34 2

24

' :

4

9

74

L295

1

473

3 .626

26

189

,

130

Puerto Rico -- -

Other . .. ----- -----i-Bi - -------- 38- -------- H'

.

24

. ... .

- '.

2,295

. . .. . ..

473

__ ----

26-

: : : : : : :

----------- ---------- - Undistri uted f :

edwalta, daposibs-._------------ -

""""

lubricating air, and excess 6CAT ---------- I ----------- ----------- ----------- ----------- - * --------- ----------- ----------- -----------

aidill

---------- ------ Withheld taxesof -

--------- ----------- ----------- ----- * ----- ----------- --------- * - ----------- ----------- -----------

Clearing account

In, Exc,,. tax" _

lu at a,it oil-Air Force and Navy- . .. . . . . . . . -------- . . ....... . --------- - ------ - ------- -----------

Total$ for states 01 !,b!,~-

Ilifolnia

Minor. . . . . . .

4591 :4

43 1 26 400 ~ '

3

322

13 :406

8 511

16 :58 3

7 690 1 ':lot

9

. 3" " .

.50

1 786

40 :279

21 108

1 .211(1

3 56

1,11

14

C) New York 96

AN

. ~ D

4 3 651 37 928 4,931

6 .953

,

11 116

211

1,

14

~dt Ohio .

a ; P riill :n .m.

D0 9

581 . 25

41 ~4713

'3

14

2 111

15

.51

5

4 :

88 394

27 451

665

61 715 930 28 62 " : '65 7

99

2

489

1

. 17

576

I)

T x . .

. . . . . . . --- 1 .326,470

2

1,237,75 38_.901i

:

9 941 9 .566 406 62,077 189 4,082

Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and otherareasContinue d

In thousand, of dollars .

Retailers' excise taxes

Continued -m tax.,

Internal revenue regions districts States and othe r

areas i (State, feprese~led

b y

s"' gle di~tlicts ledi . Telephone T,anspor

-

' 1111 in, Trans "

cared in parentheses, total, I., ofbar State, anown

Diesel ad and taillil of te'railmol

L.Turt

at bottom of table) special

H., il

To let

onlyp'- P-or,

.

r tr i,el

fImp" Sus. ,

.o

to, fuel ,,fa

r

I-c"

by air facilities

by I,

(39) (40) it) (42) (43) (44)

iSi

(46 )

United States, total---------------- 334.473

---

39 3. D41. 551 1 . 1125 . 228 579,167 44 .542 113.616

North-At lantic Region --------- - . . . . .. . . ------ 5.657

'1

740 047 395 .935 165 .433

1

7 036 38 973 Albany -------- (See (0 below) --------- 1 .518 --------- . 4~ 326 3, 229 59 -----. 5 .

Augusta . .. . . . . . . . . . . . (Maine) ---------------- 1 .249 . ... . . . . . : :-

1,

569

4

73

4 8 B ston --------------- (Massachusetts)- ..------ 3,113 2 95,915 83,136 3,032 188 72 2,535

H .H., lyn S : : ~c~ lb : :'*~ 1 11 13 11 1 14 234 1 '93 1 3 .001 392 1 .350

Bud i,thin ~Veimont). -------------

: 7

x 7 1

113S

. . . . .. . .. .

---------

4 :2 4 5

85 1

ft"13

172

2

4

2

1 9

4

3

Hart Connecticut) ---- 2 .29D _ --------- 83 .381 78 .902 78

8

1

Mark 'tun -------

2

.035 5 528 .028 218,431 160,197 16 .541 6 .546 35,083

Portsmouth ----------- (New Hampshire)

-------

Providence-, ------- (Rhode Island) ----------

66 3

23

---- -

. . . ...

1170,3 1317

1'. : : : :::: :: I )

f

.

I

.- .

ard

-Atlantic Real,, - 43 .441 12 131 14 1" 111 1 7" 199 927

. .. .

9,ki

Haiti....... . . . . . 6 . 159

. . . . . . . _

7 3

:ROS 4,:5.3 " :4

11 161 11 1 ..... . . .

far :

"w" __ 1*

"Y)W 5 111 18 S9 14

9

80,215 so

5 . . . 6 ~

a . , : :

Phled, S

.

(a) el o

1 1 :696 . .. . ~

L, 81

' 1" '

* ) 49 5~020 Pittsburgh Ilea I ITeiram .el.belc.1 . . .. . .. ..

it --- Virg, I -----_----_ -

14,80 1

4 .848

----- ---- :_

. . .

13 .7a i

41 113

9 :365

31 .71

45

1 54

213 825

Wifthil ten a --- - ----- (Delaware). . . . . 73

1

~ :970

1

' . . . . . . -- ' S ' 1

So.

th ...t Region ----------- - ------ 31 . W 7 : : : : : : : : ---- 429 .794 235.524 98.286 2. 235 4 .1- O 1 2 .o95

Atlanta . . ... .. . . . . . GI. gj.) 5,484 ---- 207 61 1 1 21 121 64 .131 691 2,711

5,

0 1

0 b

i-millb.. ~All .m .) ------------ -

ra

3,529 ----

1 :77

10

02 : .28

N 1 4,73 S L

Colu mbia _ - So. , Cu lm .)------- -

Greensboro (North Carolina).

2,72 2

5,565

. . . .. . .

: : : : -------- 37 3456 5 :2 2

Z2

3 '30 .121

59

5.943 14

' .)

228

5

2

Jack,' n,,,,,: :

: -I ) -

J.1kaon ~Flrriu`alppi

2 .113

6 258 54' :0'1433 24 N338 16 7 12 4(

5

' 1 . . . . . . . . .

Nashville------------- fT aria-) - , : : :

1

1 3'1 " ''7

1 :

41

1

. 01

. .

1 .

411

1,58 0

11

1 7 3 8

Carl, I Real.. . ... .. - . . .. . . . . . . . . . . . . : : : : : : : . . . 41 :453 46~ :11 7

f91.

142 1 .222

77 1 .837

1 .91 9 Cl.,innati-.---------- (See (it) below) -------- -

Cleveland,.--.------- (See (it) below) . . . -----

3,11 7

14 .

213 : : : : : .------- . . . . . 515 .80 9

61 .127

21 ,

53,812

G04

231 f

9112 42

16 14

DatlTit---------- ---- MKhlgam) -------------- 6 .790 . . . . . -1 11 112 11 03S 253 4 702 1,74 2

Indianapolis ---------- (I rule no)-------------- -

To I

"

~Wl n

'i' ilia- ---------

8,852

6 71

"

-----

4. :

174

1 I11

3, :

429

1 21 7

12 2

2

6 3

1*)

3

15

1 1

. . .

, v

Park .. Lori:

Midwest Region . -----_------ ----------------- -

A

b

indeen

'0 U" _ __ _

I 6

:63

53 .226

2 '

1 :4116

1:11 7 ,

0'

9 :

a

..

398-743771

1 1

108,43fif1

-------

-

. . 10 .92 1

I

16 .623

f

1 . M

594I

Ch.,sgo-_ : : : : ~ Se. (b?beIowJ : : : : : _ ,: 21 :064 244"52s 105 .657 111,797

.

---4'44V 5,994 711

Des Moines- . --------- (I owa) - . ------- ------- 5,038 ------ ---- 9,709 5 .751

47

------ 32

Fgo ~Nod h D,I,la )

Wi.

a

Mi wvuki~ : 0 in)

905

4,732

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

------------ IS0,12,

7 7 8

33 .076

3

444

2

137

. . . . . . . . .

4

Onexh------------ - ~N,b-ka): :,

St . Louis------------- Missouri)-

16:117 4

96 6 3

~194

267 038

111 :17

5

7,

442

sa'0297 5 . .. . ... ..

,413

1 .

74 1

St. Paul ..----------- , Minnesota) ------------- 5,868 --------- 40 .994 3 1 11 27~11

1

:66 3 1,022 1 Springfield . . . . . . . . . . . (Sao (b) below )

thwe .t Region ----- _ ._ ----------

3:1.41

91 20

14:315

. 668

:6 4 ~

1 9I .SaS

It

1

217 .758 2 2

5

1 .396

IT

1.465 30 .4831 Albuquerque (New Mexico) . ---------- 3 .554 .. .. . . . . . . _ 1,239 204

"1

(1) 13

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

A

"'t

_ ~111 1.11 below)---- - ----

Ciro nni : : : : : : ::-. ::--

11

Wye ins) -------- ----

11 .753

2 .070

------- "" 13

7

85

.. ..120 . . 1

2 .247 119

------

254

(1)

6 .7881

Dallas

. . . . . .. .

See

if )

below)------- - 21 .111 . . . . . 44,300 14 .916 17,403 i :jjj

-

Dimiiri~. . . . . . I 795 1

Col do) -------------- 3, 1)

. ... . . . . . . .

100.013 71 737 1 .473 Z3 245 16 .002

Little 1,cl- kansas) He ~Arv . ~ . --------- -

Is Orleans- L' sl.n.) ------------

4,01 0

3,455 -202' :3"1 .3

2 :2. ,

1 .5(34

~

316

.

( 70 io1 2

Olklamoma City Oklahoma) ------- -

Wichita. ------------- (Kansas) . ---------

1~5 :011

725

1 19 . :I22 1 1 .36 1

7 '085

23

106

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

W

6if

Western Region -------------------- -

Anchorage--- Alaska) . . . . .

11, 841

79

3511, 111

4 941

225 .13 2

2,373

54 .

26 1

1,257

7 .478

1 10

4.764

608

16 .909

I-m _ ~Ilaho)----------- 2 .171 --------

I

: 553 2 14 2

- ---------

7 xin,.: : ~ : : : : : : : : : : :

"I (Mrmran .) __ --- -

Honour -----------_ Hawaii) ----------------

1,43 0

188

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

1 .5 5

10 .7 6

34

~

4

a

7,112

47

2 .40D 65 1502

3

To

a

Angeles ---------- (See (a) below) . . ------- 13,132 .

. . . . . . .. - 101,012

38 .406 35,881 3,776 3,037 3

Phoenix __ --- ~A irrin.) .. . .. . .. . .. .-

Portland- - ------ : : : : 0regon) . .-- - - -

5,760

3 3

10

------------ 2 .32

14 0

3'

5 '3

6

3 .3.f 5 .100

. . . _

----- 463-

7 2

206

1-)

44 8

: ::: . :. : . : :

Reno . . . . . .. . __---- (Nevada) 0 _

So I fLake ity-__ ( Ish)-------------- -

p

1 :3

2 3

1,772 . . . . . . . . -

:~

5 6 5

10,777

1529

16

76

22

. . . . . . . .

. . . . . . .

n 1

.

So . . . . . . - (Ise 1~) below) -------- -

Seattle- Franc' 11hurriflon). -- -

- (W

23 .302

3 .307

--- -------- 158,20 3

47 11

9

130

. .

11,176

8 .111

1

1 2

'

2 .145f77 11677 1 .67 1 Office ,, He. .. . . . . . .

all bimr .1 In mall. n .

, -

9 :

'2

a

27

2: 170 2 .113 22 2 .24D

Po alto Rim. ------------ - ------- -

Other . . ------- --------

-------- -

26

------- _ _

. . . . . . . . . . .

"'

4

6,979

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

27

I

2,969

a

2,395

. .. . . . . . _

22 - . . . . . . . .

Undistributed :

Federal is, d,posits-_ ----------

Gasoline lubricating oil, an it excess IFICA-ciedits I - -- - - - - . . . - ------ ----------- -

Transferred to Government of Gumm__ ----

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

---- -------

- ----- ---- -

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

. . . .

- ----------

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

- . . . . . . . . .

. . .

-------

- -

- - : : :, : : Withheld taxes of Federal employees . . . ---

' - ' ' '

:_ . : . . .. ... . . . . . . . . . . . . . .. .

Clearing account for E .ci,I t-s-e0iticin twel ---- ------------ - - ------ : : : : : : : : : : : : . . . . - ----------- - . . . . . . .

and oil-Air Force and Navy.- ------ - ------

I

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

------------ ------------ I----------- -

~~&) I forms- . ---------

Illinois . . . . . . . . . . -

(c) No1 . York-----------

,a) 0"' ~ ~ ------------

P "I

Iveni a

It) T :s . . .. . . . .

Total, for Itale, of he . . abov e

36 .434

24,204

9 .474

17,500

"

497

%~808

25211. 1:2 U

5"

:~1]2

I 7S I

121,598

97,663

R9 .105

'7: '

233 00" 75.270

99,293

34,711

44 .078

IIZ.019

162 .22 9

834

212

29,649

6 .323

4A

53

19,54 2

9

15

1 303

36 :005 654

1

942

: 1 16

52

1,049

7,674

799

36,43

1 66

5,021

6 .789

127
128

Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areasContinued

1 . thousands Of dollars.

29

4

3

3

1 2

Imem.1taniumv-sion ,

late ,

in parentheses : totals tat other State,

N.-fill Ind

""il .. .

oin .

up led

rm " .... e 'a .

.t ...O und Private . icm "tini.

shown at bottom of table) occup includin g Upost 1it -'s : m crpa. ..isghway

..

.

'or vehicle,

vi l

ihmr."

F f a

mynt. n

'ril a a.

Ta x

is .,

in

incoun:

(47) (48)

'~ E'

51) 52) 53) 4) 5 )

United States, total. . -----_------------ 257 7.286

-

76 .5. 98 .517 ,293 ,617 .979 0.191

him-th-A"antic Region . . . . . . . --------------- -

Albany. . . . . . . . . . .

R 't te ,

3 9 0 9

----- ----

26 6

l :O'D

17(*)0 . . . . . . . . 34. . 8. . 446

1 3

.82a7i

-3 .6 7 Atigtsxa~ --------- : N ir )

It . ..c hounitt') 2 f 2 7 1'7'0

1

3

9'

0

1,11 1

2 0

.411

3

3 mok 1 ' 8 : : b:l,*

ly, -- I

.902

2

1 1

6

% :413.

Me _ . . . . . . . .

Burimigi;n. . .

y. '-a - - - . . . . . .. . . . -

:

------ _ -

I

-- -- -

9

------- _

88

1%

2

3

2 7 07

Hutford_ . . . . . . . o n o c6 c u 11) . . . . . .

. ( ) ) 4 1 . s 7

1 "

7 3

45

Man

I a (0 below). . . . .

.. . .... u" ~N' w Hampshire). . . .

2 15 0

M

751 694555 93 6

11

0

:65

112

91 5

2 3

0 :3fi 5

Pm,id .nce______ (Rhode Island), . --- -

laid-Allawtic R.gi ._

-----------

14 3 7

5

291

3

25 04

8

1

59

9

11 .632

~

7

.640

g'

B."u" 64.347

Newark- ------ .. . . . . . . -. . .

2

2

4

290

.)

52

7

1

273

6,143

2

151 5 5 8

91 2 .4 8

"'

5

4:

598

S .

PI=1'h!' P'

: : :: : : : (See ~V below_

1

2

46

7

1 3 4 :037 17 . . . . . . 2 . 2. .

0

.......4. . 4

6

0

209 7, 63

3,635

Richmond . . . . . . . ~Vuqmi.)_.

-

4

6 2 9 ,337 5 0 52 407

Wilmington__ : : Delaware). : : . . . . .. . .

Sol

.. .t Nag

.

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

3

2 I

. .

T.5i, 9 5 N'

0

25

27

9

2 720

2

4 .111

23

.S7,

5

. 1 3

932

Atlanta-- .- ~G

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

I

1

IE)

`- )

I

71

, 1

31"9

2

11'2

0

148

9

109

10

2,023

Columbia . .... .. . .. (South Carofina) . .------ 2 7 66 4 ,641 7 8

1 ' ..

rare

(North Carolina), ..

Gr ou"o 20 3

11 1 2 3 1 111 9 : 650

)ackspro---:_ ----- (Mmissippi)_ . . . . . . . .

Jacksonville . . ~ __ (Horida)_ -----------

3

8

.9

8 22

5

300

~'73

96

' ~

943

.

83 9

"

9B

1 211

Ninihitill . . . .. . . . . .. (Tennessee) . . . . . . . . . . . . 2 1 .038 3 54 :56

8

9 6 0 7

_ : gaI

Central Rc . . . . . .

Cin in (See----- (d~ ;tI;---j : : :

6

2

64

T

9

1

8

1

11

.

54 1

1 149

3

311

101

2,111

1 5

4815 IS 7

1

C, . . . -411 .311 Drilml (Seehr) (Mic ii. hafimv)~ d) _ . . . . H

3

2

2

. :

516

'J"

---- -- -

2'

------

i6i

0

8 .77076 44:6111

Indis p.1 (Indiana ) 7 6 8 26

' IN

1 N2 11 .

------ ~Krm ucky) . . . . . . . . . . . . . B3

1,1kinuniq. .. __ Werai V1121.1 .1.. . . . . . . . .

(1 28

26

1

5

2

9

1

, 4

1 11' 1

.

95 72

11

Midwest 77

"'ge--------- --- -----------

42

'''

1

as

1

1

11 :249 45

1

64 22 903

Aberdeen C . . . . . --- (South Dakota) ---- -

hic go.. . .. .

. --- (See (b) below) -

T

7 2

12 16 271

3

7 :42 41

2

,179 It 1

5

183,,5

3

271 6

Oa 47

a ion .. . . . _ ~1-)---- -

F. ll.--- -- ------ North Dakota)--------- - 1 2 8

8

733 4 6 s2

14 Wi 72'

waukee,.:------ in).

Z

2 3 1 7 117 1 111 2 21

Oman St ----- _. . .. Nebraska). '

. Louis. . . . . . . . . (Munumli)__ . . . . . . .

2

f

8 1 : S4

52 1

1

23 4

1

306

099

38

32

39D

2 489

r-`h --------- (S`mo - ----

5 1

) 4 4 4 6

:

33 4 0

Spr .g eid ( , f b )

southwest Reggio. . . . . . . '

3

20

,1 S2 3 1

31 932

------ -

2 .032

-

.279

6105

-211 136:320 1

A --------

--------

S'* T ---- -

8

92

1

1

5

6

7,456

6 6

,137

8

416

0

.075 7

-98.373

Chas - se --------- !. ,. n.) : : *) B ) ) 3 5 7 5 5

------ 4 ------

,

94

' .. . . . . _- --- - '

,171 D

Litt oik .. (Ark.

s' ' 1

21 ia5 3

45

2' 4'1

1

ii

1

1~i

6

"

9

1I

New Was- Ek . ... .. LOWsi n 3 ------ -

lahoma C, ~Oklahoma).. . .

t,

21 7 13 3

4

77

2 : 6

3 771

S

4

' '

5

U

11 .1 3

334

i,7117

-61 9

Wnchrt------ :: : : :

a

K mis 1) . . . . . . . . . . . . . . . 1 9 2

579

Region: : . 2 1 3 2 1 9 1 0 Western. . . . . . .

A cho, .g . . ... .. . ..

n

131 219, 1

2

44

25,

.249 2

70

133

162

4

1

.

a l

32

:

973

-194

Bons.. ...... . .. . . . (Idaho) -------- . . . . . . .

H Iln. . ..--------- (Montana) ) 3 1 4 2 '72' S 31 13'

,

H : 4 11'1

onto, ----------- IN

_11)

Los .,., .a. . . . . . . (Sao 0) below) --------- 393

1 0 3

42

. . . . . ~

1-)

. . . . . ~

ill

6

6 .775

3

,244

4

2,954 07 .917 458.590

Phoenix . .- _. . . . (Arizona) 3 34 :~

7

' ' ' "

4 5 39

Porthed_ : . . ---- ~Oregon) . . ------

.) 't,

S 1 f31 0 2

'

3,2 3

Ran---_---_-- ~ :

N

I

lt L .k, Pity . . . . . (UUh) -----

i 3.) .54 0

. 5

111~1 51 083487

311

4

39

7

S : 7 615

r, Franc IS. (a) be . . . . . . . . 0 3 2 69

7

Staff _ -------- ---------- 7 4,11 7 Wephunstrier'- . . . . . . . .

Office of International Operations, . . . .

3 3 2 a

2

:920

193

8

3

3

go

9

1 .24 3

72

07

6.21.8

Pusur - --- ---- ---------- - :

:

of Vo Ric o

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

: : :: : ::

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

-

-

.. ... .

193

. . . .

. - ------- ---2

9

6 .24 7 UmlixtdbuiW

Federal tax depoift' ---- ----------_ --- -

Gasoline lubricating oil, and excess, FICA credit'.

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

Transferred to Government Of Guam_ . . . . .. . . . . . . . . . ----- - With ' old taxes o

; Federal

Cie. 9acc.. .t - -------------- ---- -

and oil-Aif Force and Ninvy . . . ------------ -------- -------- - --------- ------- ------- ---- -------- -

b~ C,blunia . . . . . .

lir-i.. . . . . . . .. . .. .

~c) New York ... -------

it) 0

h

tri) It) Pann, Ivan far 1 . .. . . . . . .

. . . . .1.

Muctill.h.p., taxic-Cimfirmad

Totals for sure$ not shown abov e

7'34

1

231

so

2

.371

89

3

112

.11IS

12 0711

'ill 2

191 :472 948

1 10 :11

164

6053

11' :"

2 :'244

71

4 .1

3951

f .'17372

2~854

98 5

T'l 2 769

4116 3 4`4

8,583

2,294

185 77 " :"1'

2,73490

34,463

1,702

-4577' 39 :2S

_ 11 197 .t:,

02

Table 2-internal revenue collections by sources and by quarters

[In thousands of dollars)

Source of revenue

Grand life -------_----------_--_----- ------ -------_------

Corporation income tax -----------------------------------------------

Individual income and employment taxes, total ----------------------------------

Income tax not withheld and sellImployent tax ~'_iiy- ---------- ------- Income tax withheld and old-ale disability insuranc e

Rail.ad loti-iml ---------------

Unemployment insurance---------- --------------_------

Este a tax

Got !a------- --------

Excise taxes, total ------------------------------------- ------- . . . . . . ------

Alcohol taxes, total ------_------------ ---------- . . . . . . . . . . . . . . . .. . .

Distilled spirits I_ -------- Wines, cordials, act. I ----

Bear .. . . . . ----------- . . . . . . . ----------------------------

Tobacco taxes . total ------------------ --------- _ ---------

cigalat ----------------------

Cigars ----_---------------

Other ---- __ -----------------------------------------------------

Manufacturers' excise taxes . total -------------- _ -------- ------ _ ------

Strolin ---------- _ ---------------------------

Lubricating 0.1, arc --------------------------- ---------- . .. . ... . .

Tires (wholly or in part of rubber), inner tubes, and tread rubber ----------

Main, orm, iielficlics . . . . . . . chassis, bodies, parts an _acc six-es . . . . . . . . . . .. . ..it . . . .. . . . . .------------------- . . . . . . . . . . __ . . . . . .

Retailers' excise taxes, total ------ --------- _ . .. . .. . .. . . . . . . . . . . . . . . . . . . .

Noncommercial aviation gasoline -------------- - _.. .. . .. . ------

Noncommercial aviation fuel other than gasoline_----_------

Dierniliand special motor fuels --- _

Oth, -------------------_---- --------

elleneous excise taxes, total --------- ---------------------------------

Idepl,cirrx'j'p.d .. ... .. . . . . . . . .. . . . .

T

, se

0'"Tintet,artimral air travel facili se o ties. -------------------------

Transportation 1 Of property by ai------- --- :::::::: ---:: .. . .

Nufrc .tiu_ii~d _mi,_h_u_a_r_a in , including occupational tax

Go!,.operat,d a, ng device ------------- ----------------------------

Wageting fares:

Occupational --------------- ------------ a

Use tax on ~uiby;i ; -mii;i ------------ ---

Useviax lonuoi,il aircraft Pr te ---------------------------- --------- . .. . .

d1lums, net i ...stment income- . . . . . ---

----------- . . . . Orth.01- . . . .

Unclassified excise taxes

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

Quarter ended

Sept . 0, 1972 D-31,1972 I Me,. 31,1973 Jue,30,1973

5,642 .309

- 7,402,570

98,134

47 .089,275 59 .924,812

7,613 .225

_

7,912 .294

33 .726 .205

79 .130 .809

16 .117,21 9

Z .921~ 496 57 .557 .89 1

4 30

0 3680 2 1

1 I'D :335

4

.14,1 .4110

3~

71

'52496:084

294,988

-

11,2 It :431 1

4 .165,0452 4

1,154 .49 6

787 444 6

as 23

322,429

397,68 9

394

12 :33DIS

418

1,280,86 9

757 17

1 02

7

:333

113 3.11

:3

316 .78 5

89 .955

35

:73.

81 .071

2

792 .68 1

414 7ii.1

I 147 :"3

.689

102

21 :4198

.,877

723'.

71S S6 :19,7

25 :2l203

449 .355

-

32 l73 1 .. :176

279 .526

174,3Z7

3,1 :734

"14

"6

4 .174,896

1,318,574

1,019 .6796

49,94

248,94 9

672,666

7 :639

"14 38 7

54 0

1 .407 .702

1 . 9

27 618

3 3 8

132 :2h31

16 .28 0

91,42 7

2

4 :911'2

8HM9 . . . . . -----

- ---

655 .679

404 :881

1 39 .92 1

10 779

30' :9.89.

975

23

1 . .47

1 51 :4,7

7 8

1 3, :~2711

28,948

3871345 35' :745

324,958

336 .346

1,182,318

3 .V243 :3 . .7

1 .169,61 9

859,204

261 : 21N'

--

362,73 7

311 768 12 48

6

48 3

1 .346,0 1

'24'

:,1 .17

M 451 5

173 .29 9

93,78 6

25 .094

85,739

754,647

483 .094

11111 1, :11,2

9.67D

22.20510

219

162

1,927

7 :,4 .13

3

1

72a

12 5 7

.96,827

1,052 .436

4 .3&11 :0"721

1,506,824

1 .089 .189

361B :'WN1

843,959

If

4 V11

696

1,360,489

92355 .981

.54 6

71

1 'J'

7

1072

19,11 04

93,204

2 .145

9

J :'0737

3

838 .54 3

512,390

1

100 .163

3D.93746

1,156

S .

5 7

1 E.1

521 8 :701

111 Is.

129
130

Table 3 .-Internal revenue collections by sources, fiscal years 1972 and 1973

Ila thousands of dollars)

S . . . ... I f-ru.

Grand total, all ...I ---------------------------------- ---------- ---------------------------- ------------

Wmulim income ------------_-------- ----- -------- ---------------- --------------------------

,_P leti ---- ------- ------- ---- ---------- ------- -------------------------------- ------

acometax . . . . . . . . . . . . . . . . . . . . . . . . .. ... ... ... --------

Individual income and empl,yaraml taxes, total ---- ----------- ------- -------- --_--_---_- ----------------_----

n,,., in mit wilImIld in ad ~01-ployment to, 1 . . . . . . . . . . ------------ - -------

w thlbIld an .d, .Id. .,. ad disability me.,an- Intel into

i Railroad retire t . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . .. : ::~ ------------------ - -----

Oil- U. .Inpl.,agal in, .It, t:; ,

.I=%,mpi,y of ,o,,.,-oe p,,.rn, at Pry time ;n each of 20 ,leader weeks . a' paid wages '500o,

.or,

I ad 3 xrn I

taxable Pit to, a ,gas, effective January 1, 1972 . . . . . . . I . . . . . . . . .

Estate lawdualed rates from 3 zcertoh W tes$5,000 of net estate in excess of $60,0100 exemption to 77 percent on portion over

G

d$110 .000, ; credit allowed for St e de h tax -----------------

. . . . . .

. ----

I

$10to a Par 211, percent In first 1 . 0of,etifillsinexceno III..Wlfdu led xIgnf~ru.d ""I"m , I

. S 01

'foo

; 33,000 to donee.- . . . .. . ... .. . ------------

Excise lao" total .. . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . .. . .. . ... .. . .. . . . . . . . . . . . . . .

Fiscal year "

1972 197 3

209,855,737

34,925 .54G

3`1 .9ili,J32

9 .41 4

152~593,187

2 :77 8151 :~11571

1

22 1

1 .072 .776

1,024,069

5,126,522

363,447

16~947,036

Alceh . total .. . . . . . . . . . . . . . . . . . . . . . . . . . __ . . . . . . . . ---- ----- ----------------------------------- 5,110,001

Di I'd so

ri

I

s taxes, total . . . . . . . . . . . . . . . . . . . . . . . . .

I domestic). . . . . . . . . . . . . . . ------------------ ----------------- 3,760,91 5

----------- ------- _ ------ ---------- --- ----------- 761 .612 I mint ad (collected

b yCu""= if 'n 2,958,725 Domestic, $10

. 50

per proof Rallun . r:"al"In who. mlove proof --------------------- ---------------------------- Rectification 30 cents per proof italimi I ----------------------------------- ------ ------- I -------------- 27,163

It i

I Occup one aos :

Noolbe erage manufacturers of spirits, $25, $50, $100, per year ------------------------------------------------- 71

'

i s

Rallih.

Les,;illow,20.000 proof eallons,$110 per ye -----------------------------------------------------

4

f

20 1, It 22

go ----- ------- 12,116 ---------_--- 6,6 Wholesale liquor dealers .$255 per year --------------------------------------- ------------------

S,e,iliire,, penaltie S

Its or condensers manufactured

Manulactu ers s 'It' .of

.

oils

. . .

.

.

$55 Pat

. .

. $22 each

. . .. . .

yea

. . .

..

.

.

. ------ 550

. . . .. . 5

- -------------- . . . . . . . . . --------- -------------- -------------- 2

Wines, cordials, etc ., taxes, total . -----------------_ _ ----------------------------------- -------- ---

. . . . L~11~1 .12 ,471

Import collected by Cust-, rates same as domestic)- . _ --- 'd

.

mest ~c lSt ----- I ----------------- ----------- ,117 ,at,, 67 cents, $2 .25 per win, gallon ; sparking wines $3.40 : artificially carbonated wines, $2.40 ; Dolique,ra, cai'~-dw"`

.92

) --------------------- ----------_--_

i"" ------------- _ ----------------_-- --------- I SO . JW Occupation taxes :

I

Retail dealers in mas of in wines and beer, $54 per year . . .. . . ----------------------------------------------- 3 Wholesale dealers in wine, or in wines and beer, $225 on, year ------------------------------------- ----------- '274

Be., lose,, total ----------------- . . . . . . . . . . . . . . . . ! -------- : . . . . . . . . . . . . . . . . . . . . . . . ----------------------------- 17,86 3

Imported (cgollected by Customs, rates same as domestic) ----- ---- ---------------------- . . . . . . . . . .. ... . .. .... .. . ---

01

mest, . S per barrel of 31 aalions, . . . . . . . . .. . . . . . . . . . ------------------------------------------ --- J .B'714195

octugat

rejonal la"s :

than 500 barrel,. $55 Par y e

R.E.500 barrels a, more, S $110 put year..-------- 13'

4 P,,Ieaf InCures traded retail dealer, in wines or meet . $Z.20 pet month----------- __ ---- 1.6171 9, wh. ;.,1aI in bear, $12 , total Per In --------------------------------------------------------------------------

Tobacco tax .,

. . .

. . . . . . . .. . . . . . . . . . -- ---------------------------------- ---------------------------------- 2 .207127 3

Cigarette,, tatel

Small

Large (Class ED, $8.40 par in. . .. nd, except I over 6V, ,,has long $4 p,, thousand to, each 2Y, inches I, fraction P, Ihereo f

ePaymgrifs._.: : ------- --------

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

Large

'.go"

,total -------------------------------------------------- ----------------------------------------

class A Retailing at not ever 24 em, ach)~ $2 .50 par thousand . . . . . . . . . . --------------- _ ------------

CClass: B (Over 21h cents, not . . . . 4 cents each), $3 Do, thousand -------_------------ --- ----------

Class C (0, " 4 cents not over 6 cents each), $4 Per thousand I . . . . . . . . . . .. . .. . .. .. . . . .

.

. . . . .

D (Over

6

c ents~ not over 8 cents each) . $7 per thousand 0 ------------------------ Class EF ~Ovef 8 cents, not over 15 cents each), $1 per thousand .. . . . . . . . .. .. . . . . . .. . . . . . . . . . . . . . . C ass Over 15 can" . not over 20 tents each), $15 Per thousand I . . .

Small cigars, 75 cents per thousand- -

------------------ - -------------- Class G (0- 20 cents each) $20 par thousand - --------------- _-----_--------------- --------------------

Nep,yinerla, ------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

I nnum led tiger, . .go, sit,, jiualt, Pepsi, and cigs, ette tubes, (collected by Custom s, rates sa rn~as domestic j. ~ ------- Cg.M;scallaneous Tobacco------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -----------_--------------- re a papers and tubes, papers one-hall an( per 50; lobes I cent per 50. . . . . . . --- --------- --------------------- -

Stamp ta,esom documents, other instruments, and pi,yingto,ft, total't . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2' 15'11 B

5

237,787,20al

39,045 .30 9

39,032,707

12,602

177 .193,715

145 2, 11 .3111 :138

920

1 : 9

1 ....

4,338,924

636~93 8

16,572 .31 8

5,149 .55163

3 .755,

736,020

2 .971 :~2

34 '73'

84

149

ISS

7 23'~

3

111,511

2-80

..47,4V

.52

I' d

1,701,44 2

JT~7. jbj :~111~

15

.2

2 .276 .95 1

.21 11 .1

2 .

221 :.

54 .173 53,79 4

".11913

1 .822

T22,585 o

4,916

IJ2,6,

58

"11 0

1,15 3

259

49,79108

1,947

7

:4.116

21,269

5,121

3,954

3 .940

64

89 34

I .,N0

44

i

Table 3.-Internal revenue collections by sources, fiscal years 1972 and 1973--Continued

11, thousands of dollars]

Sources of revenue

Manufacturer, - ..cis, t, .e,, total ----------------------

Gasoline . 4 cents per gallon -----------------------

To I Phil . etc. . 6 cents per gallon ; ---- it ---i---------------------------------------------------

fi~::, (*i,h."y '~,'P"ep

10 can, cutting oil . 3 """ Pei go an .. ~ -- ----

.. ... . .. . . . . . . . . . . . . I an

T h fly , of rulblbvj~otmd omm, 5 cents Per Pound

. I., maer tubes, end ".ad

rubber except laminated tires (other than type used on highway jr,,hices) . I coal per pourri a, ------------- ------------- -------- --------------------------------------------

up a at or Its 'orPound

Irl .d 'I c`e Too - ---- -- a d Moto, vehicles, chassis, bodies . parts, and accessories:

get automobiles, chassis, bodies etc ., 7 percent'- _Passen .. . -----

----

T ks, .a

d

parts re I I box.,, chassis, bodies, etc .. 10 percent'- ---------------------

sito ile , trucks, etc., 8 percent ,a, !!, ~o . .. . . . . . . . ... .--- -------- ---- ------------ Ml~ . . . . Refrigerators, freezers, adr-condihimen, etc . 5 percent : self-contained 1-1 ''e',' ,'_'t'26... . . . . . .. ... ..

.. ___

El act fc, gas, a I I oil appliances, 5 percent Is

.. . . . . . . . ... .. . .. . . __

..

. . .. . .

gy

NEW, and revolvers,

11 ---- ------------ --------- --------------- .odbit.,r1ch,=,110 percent" in

10

0

percent_

-----

. . . . ---: : :~ . . . . --------------. -----

. . . . . . . . . .

Sporting goods (other than etc .) . 10 percent". . . ... . . . . . . . . . . . . . ---------_- . . . . . . --------- Fishing rods . creels, etc ., 10 percent ----- -------------------- ---------- . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . BI,inesl,,,Ind Itore majohinbes, 110 pvceat2l ---------------------------------------------- --------- . . . . . . . . --- E

Ject,

nc b

I

III ad to es, 10 -_----------------- p,,,,enl 11 J[C ----------- -------------------- Firea me (other than pistols an revo ye~ :%ahallan no cartridges, percent

Mach "i-I p,r,ig ..Per,I0pea,ent ;Iigh . 10 Is Per lighter (111 a, anore) 10 percent (le~i

R.t.11.1s' excise taxes, total------- ----------- ------------ _ ------------------------------------- -------- -------

Noncommercial aviation gasoline . 3 cents per 9.11 *

-

o ont me

icial aviation fu,,l other than gasoline ,at, per 7 ----------------------------------------------------- gallon-- . --------------------------------------- Dieseland special yaDtor

L.2 a., It

;,imIa,4 centsp,rgallo, (in somemstances2 cents peffiallon . . . . . . . . . . . . . . . . . _ ---- ____ . 10 percent . . . . ---------- _ --------------------------- . .. . ..... . . . . . . . . . . . . . . . . . . . . . . ... ... . Jewelry, etc., 10 percent" ---- ------------------------------- ---------- -----------

Furs, 10 perceri ---------- _ --------------------------

Rise Toilet preparation 10 percent W. ---------- -----------------

ellammus excise taxes, total . -------------------------------- --------- ----------_ . . . . . . . . . . . . . .. .

Admissions taxes, total '- . ------------------ --------------------- _ --------- . . . . .. ... . . .... .. . . . . . . . .. . ... .

Theaters concer), Admissions '"'elicr ',* to-' c If ."hel" 415s on thereof of the amount paid, in excess of . or major fixactit $1 . . . . . . . . . . . . . . . . . .

ILI.s., If boxes or seats, 10 percent of the amount a, which similar ccommodat ons are old --------------- Ron gardena , cabarets, etc., 10 percent of total paid for admissiDna, services, etc .. . .... ... .. . . . . . . . .

Club dues and initiation fees. 20 percent (if dues or toes or . in . . . as, of $10 par year) 11_ ------------ .. . . . . . . _ -------

T n

Telephone Aind teletypewriter ex hange services

I a,, lbjiai~~ .1.0in-oId wife , it efoomment service,, 8 peacentzx. . . . . . . .. . . ---- .8,porcemt (which percent a active July 1, 1970) ----- _ _L I at proz~nr, ft . . . _ . . . . . . . . . . r: ty percent ------- I

. . . . . . . . . T, n:pl.o -------- tiaegof infinnaPonal air travel locilit !as , $3 on, p., .P . . . . . . . . . . .

. . .. . . . . .

S

at, approximately half-cent per pound ------------------------------------- ---------_----------- __ ----------------

N of.', add tralihmen., total I. . . . . . ---------------_ -------- -------------- . . . . . . . . . . . . .. . ... . .. .. . . . .

h .acatics,---------- ---------------------------------------------------------- --------

-------- _ ---------- __ ------- ------ . . . . . ...... ... . . . .

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

lem-oper3ted amusement device, $10eper Cod Main... a ----------- ----------- --- ------------------- do ic,, per year, bowl Ing alleys, me] tables etc . $20 per alley or table . per year ~I. ------- n-Ppolled getting devices, $250 P itPX~. on, year --- .

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

.

.

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

Water

Ing

I . .

. : Occupational

" So

eo.y.,aw...a :-- : --------

Use Wage pevottl to, a way .f toin ------------- ------------- I ------------------ ------------------------------- ------- _ ------- is h1ligh vehicles weighing Iver 26,000 pounds, Viper 1,000 Use tax an civil airce $25 Pdoundsper year (installment privileges permitted) . .

e

_r1mbonal 2 can a . . . . . .par from an ronforbine engine nowated over 2,500 pounds or -h cents per pound on%rbin'g,',yiP`,' wp.`who%da i --- fit ,

Adult. .. led buffer and d cheese (imported and domestic), piocielWir ---------

Firearms transfer and occupational to est' ---- ---------- ----------------- In forest e,",Ii,,IioI . .. . . . . . . . . -------_------- . .. . .. . .. . .. . _ -------

mliig

"I

once

Private jounIa b1n Net ave --------- --------------------------------------------------------- --- ------------------------ ,

1.armal income, 4 ,,coal ------------

Self rare . 5 ----------------------- ing, percent on setf-dealer, lenedr at SIOODO a, 2~$ percent a, ,

uen b .f,I,,a WWI, 5 percen on 1, on ation as . ------ _ .... ... .. ...... ..

1

able expenditures, 0 percent on found-lion, iedser of $5,000 or 2'A percent on foundation-. . . . . . . . . .

F ail, to to file certain Information returns, If 0 per ly up to a maximum of $5,000. . . . . ... ... . . . .. . .. . . . . . Ass able In "',as with ,,,act to annual $10 par day up 1. 1 maximum of $5,ODO____ . . . . . . . . . Fort." is.

to d

,Jr.

it 'a

income . 15 ra"im, of u

mlishipuled income . . . . . . . . . . . . . . . . .

live imports which jeopardized chalitabi

arm

roose . 5 percent on foundation, lene, a,;;4wr

: :

Fiscal year -I

1972 1173

L.72!.657

1 .74 51 :411'ar0

9

5,395 .750

3 .927,535

103,09 4

626 .401

21, :053 8

2 66

1391 a . 3

.153

94,099

_ a

. . .. ____

1. t .113o

37

2

. .

.

A.R3

----------

it

. . . . . . . . 35~771~

3i~ .fii

31if

1 1

3

298,1108

6

2,694 .68 2

-18

81

-37

1,650,499

515,269

'432 - 127 '~

115 :75 2

46 6

It

454

19

14.847

348

4 .31 5

157,279

20,375

1641

71,1

: 1721

56,045

4

5

51

7

779 .33D

753,560

321 ' . 94

:17

- Gfl3

4107 .489 :353 . .

I

231

. . . . . . . . . . . .8,332 . . ..

- 5

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

15 .539)

_615

I

41,468

-

24

368,37 2

11~ :ji21'

3

334,47236

3 .041 .50 7

149

-120

. . . . . . . . . . . .. n

-29

- 60

1,835 .22 8

579,167

37 :514118

14

13,61 6

21~27

: .286

376

5 .553

188 .517

19 .2913

2

179

6 5 1

'4 :6'50

76,61778

13

1

34

---------

16

340,181

131
i

Table 4-internal revenue collections by principal sources, fiscal years 1940 through 1973

I In thousands of dollars)

Income and profits role,

Fiscal e Total internal Employment "We s Alcohol Tobacco hirers' A othe ,

Jun ende d

.30

cut,

Actions T.t.1 r.mre and

-PIndividua ir .. . l

A

." xe

g, It to UxAl - taxes I excis to, e

.1

~IaI A,

or., I

l t

.is, I

(1 (2)

a 3,e ,

(4) (5) (6) (7) (8) (9) (10)

3 112

T8 "? '0'

14

' .' '

' N

1 11

"

2 1 33 .121 31 1 1 1 1 121 .211 111 .1 11 147 0

"

: '08 331,111

7 7 4 ll : 12 1

:05

2 3 4

:6 5 5

f .117

1 2 ~ .~6 a07 :., ~ A, 0I ~ iiif , .7 617 : 3

73

31,564

13 .W~II59

371 "'

1 :00(1 . . 4

11 1 9 2'

4 .744 :08 3

' 'N' BK

3 .262 .800

t N" NE

1 .195 :362

11 711

1 1

432 .540

14

""

1,048:51 7

1 121 1115

i8o :gn

113 117

771 .90 2

J82

1 '4 :MN

1944 --------- 40 : .2 : 1 60 3 : 27 : 0 1 14 1 : I . :0

: ~

1 7

51

11210

:~ 1 . ", : 9~~ :~.~

503, 1 .733,655

2 ' 21V "I"

11

I "

1

' 0 6

1 1 121 .113 1 9 .134 .31 1 1 11s 1 77 143 011 1 11 .16

'

132 141 712 1 1 2 211 hl

9 41 40 72 097 .

51 :

3 1 :2 139

f 2 :~ , 3

. .2

. .~

704,

: '0 : . 2 , 6,6 :8,2 :

526,165

1 .., 1 ~ :, 122 :~7 1 :4 :~H

4 4

1141 9,8 : : : : : ::: :

3 1 41 :864 W . . ..

213 f9t :0.7211 1:1 1 To 7 10 1 .111 .441 1 11 .343,117

2D 117,111

2 .024,36 5

2 311 112

779,29 1

191 .341

2,474 .76 2

2 211 .31 7

1 :3237 .2768

' '

1 :4295 :21 230,

'

2 :21 04~7 : .l

2 23

1949 . . . . . .. . . 40 .463 :125 29 .605,491

66 9

11 :553 :

18 :.5f . 822 2 :4 76 f: .3 71~ , 2 :". 7

.60 1 . 3 21 :1175 l .771,533 2,28D,969

111 1 31 15 1 1 12 21 17 .111 IP 11~4 35 1 17,113 .308 2,644,575 711 227 1 .2 11 212 1 1 1 1 4 14 1 13" 113 2 21 1 11 1 :

1152 -------- 11 -

: 44 5 :6 8 6

65 ~ M "A, 1 1

37 87 : 9

50.73g4 :01 7

41

4 :

21 :46867 ."10 2'92 :92 7'47 : 31 DI 13 :4'1'47 :274 469

:7 30

8332 9 .147

2 546 : ..

2 :54I,f20

: , 8 0:3 9a

1 %1 1s1

2 : :677

383

2 311 111

2 :3 9 2 : 7

A

2 17 1 3 3

1953_ ------ 69 .686 .535 54.130,732 21 .5 4

I I '5 32 M 21' 4 7" 4 3 11 ' 1 'N ' 7' 15

fi,if : , ' 1

- 1

2 :862 :Iff. 2 :. 7 :

al 9

1954 2 . . . . . .. . . 69 .919,991 54 .360,014

.

21 .546 322 32 .11 .3 f :1 9 51 7 1 0 :~23 9 5 : 1 : 0. 2 783 ,580 .229 2 .689 .133 2,464,85 9

1111 '56 . . . . 1175 :1'J~ I 11 :112 115s : 11~4 . 1:11 6

64

21111 :26 .72,

4

0

298 .52

31 .650 .10 63

5 .337 .642

1,119,1171114

7 .2

95

1 .1 1 :22 36 17

71

2 :~12401 :14 5740 1 :171 .21 3

13 2 7

2,1015 .016

3 ' " 3

2 .018 .86 6

" I'

D

'1~17 . :917

11'716

79 7

. 59 ":~4724'

. Of

'M10 16 5303 :3 3 38 568 59 : M : 5 7 2

80 522

78 :6544,386

.377 .99 9

,410,92

5

2 .973 .1 95

946 .461

2

J,674 :0 SO

1,734 .021

3 : 47 : 5

3 .91'4','13'5

2 02UJ56

1 -111 .11 5

1959. . . . . . . . . 79,797 .973 58 :826,254 18, 091,509 40~734 .744 8 .853,744 1,352 .982 3 : 002 .096 1 .806 .816 3,958,189

:

1 997 .292

:410711 :1806 0 3

94

11117 :914211

'67N

21 171 21 :, :911 4

Go 4'

14 .945,71 1

4WWl'

il,151.5891

1 '115

91626 .34 8

12

3,193 .71 4

3 2" " '

1 .131 .11

' '91 117

4 :,71,5:,111 A 02 2 004 :394

1 963 582

962. . . . . . . . .

1 113

9,440 .939

115 .925,311

1,945,30 5

75 .123,714

1 .2

95 71

1

22,336,134

0 49 9 1

52,987 .581 08

171

15 . 14, l

:03SJU

2 117 417

~ : 34t :2111

3 44 1 151

1 25 3 :0 :7 6

2 111 217

.120.340

1 10 1 0

' 3

2 264 :81 7

2 2

7' U

s

9 : : : : : : : : :

'4

1,

'6"" 7""1 2 :8 2" Do' : 3

I

' 35:

2 a

~ ,10 , 14

2 ji :, :3.3 3 57 a : 7 :

99

2 :.52 :545 6 0: 2 :

D

543 ,

:299,645

19 . . . . . . . . .

65

114 434 634 79 .792 G 21 3 4

3 1

s 66 6

' '

,

3

104 06

74 532 3,772 .6

34 2 148 594

6 .418,145 2,453,406

1966. . . . . . . . . 128~ 879 .961

111 174 11 1

92,131,794

114 211 411

3D :24 3

8

34

:917,82 5

34

61 297 552

69 :310 :595

20:2 :1 33

16,95168 2 41

3,093,922

3 014 4116

3 .914 .37 8

1,1371,723

2 :073 :956

2,079,869

5 .613,86 9

5,478 .347

1,19 :909

gliff 5,:,36 :83. : . : 2 4795 8D9

08

f4 5~5

29,196,520 78 .252 .045

:!8 .085: ,98 3 :01

:, 79 4,297~237 1 1 11 72 7 1 71 3 973 1 2,06 .109

1969. . . . . . . . . 187,919 .560 135,778 .052 38,337,646 197 .440 .406 :13,068,657 3,530 .065 4,555 .560

, 2 : 3 7 :5.5 ~s :

501,146 ~2~348,495

1 70f : : : : . . . : _

197 191IS 647J19a .. 1 .

1~31 1 1 :35

02' "74

1~1 :111 1 319 :19 5 3

3

113 :715121 .45121

DO ,

:97 :9141 fg:6111

: 90

3 :110 7A4 :21.731 4 :7841 :43~12

00

2 :094,21 2

2 " ' "

15,683,03 1

' "'4 '9

2~390,609

1 3,179,985

1972_ ------- 209:855 .737 143,804 .732 34,925 .546 108,879,186 43,714,001 5 .489,969 5 .110 .001 2, 207 : 17 3 5 :728 :65 7

3

1973 --------- 237 .787,204 164,157,315 1 39,045,309 125,112,006 52 .081,709 1 4,975 .862 1 5,149 .513 1 2,276.951 1 5,395 .750 1 3,750,144 "01'104

I-than ISDO .

Revised.

The recaipts in the various States do net indicate the Federal to, burden .1 each, since in many instances, taxes are collected in one Star, fro, resident

another State . For example, withholding taxes reported by employers located 'neV State lines may loll Ode substantial amounts withheld from salaries of employees who Aside in .6ghbiliog Star.,.

I Includes to, on umeated business income of exempt orrinti .- I Gollections of individual income tax not withheld inclu e Ald ..g,, Strvivan, disabil

I

and hospital insurance taxes an Self-employment income . Estimated . I Y' a. I

eparate n he totals for individual income tax and for old-age, surl"Ors .

di

"

bility, and hospital insurance taxes Are show, in the test table on p . 00 and

me used ,

n 0

"al 'ing national totals for individual income tales and employment taxes in table 4 .

1 111""PlOy"'

nt to, and

'A as imposed by the Federal I na,is rce Contributions Act .1 a applicable with respect to Guam and American Samoa. Amounts of such

tax . collated in Guam and American So T .a are , mbiom! with similar taxes

(erort,cl for Office of Intermiti-I Op-tims-0th-

.I, le,!"=ull fiscalger 957~ the Uniledt1hates total is adjusted to elciud,

hfi.ld

a, into t&!e, transferred 0

the Government of Guam i cardance wiOr the provisions I i t I It A'

Publ$ic Law 630 . approved Aug. 1, 1950 (64 St .

392) . IN

a a

djustonInt mounted to 0.7 - lion to, 1973 .

-Y '"Vs "it* In' under In

A I

.da,11 tax deposit System . are ":do' ';I , I in

tollund ' 0 In, i Al-al -am. . ,

'"llon to r fire per Oil which the Fail I

~:x deposit is purchased. However, such payments are not classified by internal

,an.. district, (no, by tax 1.1btlessa, to which excise tax Payments retai

l

,be Federal tax deposit payment is applied to the to, payer's liability in the in 0

. .

. rue

"`_ with

.

.~elu 0,.

I Represents -qfi!~' Inviable 0, in to, etu A, , I.b,i HTt in gasoline and

c."I

, oil 11, IyF,,A;l ,it for Sic. .

. Pat Cont, butrip, Act . an to to'noI n h F:de,Sl In.. .. ne.

( IC

.

- Amounts of inter al revenue taxes collected on Puerto Rican products traps.

mined to I he Un led States or ceirs-m! in the,illand (loss refunds, drawbacks,

and )A,, P, it into the Treasury

0 Pit '0 n 9

in n recs. 7652(s)(3 and 5314(l)(4) oft he Internal R~~ :n'tu~eRCiod .u~fdl;54'.~vTih. ,s,of .

amounts are included in overall Collections results

I

to'tax with 955 I through 4), beginning gross collections are Shown Separately in table 22

.

Includes Occupational tax on manufacture

'r i

S -or Wes.l .

:iquaf deals a . retail dealers in liquor or oredi nalt i Of 't~!I1' : O.rhb 1~.*Ix` an .. Sell, of spirits and stille or condensers -pufac, ued .

to Includes seizure . penalties, at,.

11 Includes occupatiorai taxes on wholesale and retail dealers in wines, a, in

'less and beer.

ine des Occupational taxes nclu a, brewers and wholesale and retail beer dealers.

I d Is tax. on domestically Produced cigarette Papem and cigarette tubes :

taxes cA I 'ad by C.

Items on imported tiffs,

I

civ; .tt . tubes

: And Onxiall.n.pir, tobacco coil

is eAction ganethes, cigarette papers and ,

December I, ' n,ludestaxn,n passenger automobiles and light trucks which weretepeal 1971 .d

under the Revenue Act of 19 ; and parts and accessones to

,

Wriprobiles . repeated January 1, 1966 by Pu bil?'I LAW 89-" ; and parts and ac .

for

t usk

" Includes taxe :'oVefishing equipment, pistols and revolvers, other firearms, and she]

is '"it

cartridges . Also, taha, C, tdhe, f.D1 10.wing !into., Wh ic It werse, repealed by Public Law 89-44 phonograp e,

ic tir-ols; bu ness, it

store machines ; mechanical pencils . peas and lighters ; radio and t.l .iliAn It, .

electrjc~ Phs, components, etc phonog . .; reffifferStArs, freezers, air-condition ers, etc n .;

tubes ; a gas and oil appliances ; other $Patti goods; electric light bulbs and ,it matches.

effective JS IS Include, I. . . . r luggage l,rs,

June 22,

5

(Public Law

891V ) , - try, And toilet preparations; repealed

Includes foreign insurance, adulterated buft,% and And

do

.

.All"' PrOcess or renovated butte, and ported

A 0,

interest

e,,, Illation

; firearms transfer and oc cop"o 0.1 t.. .. ; And rivals hurt

n

dolion' ,left d :aIi J, excess business holding . taxable penditures,

P

n

.

ilure to 111 0 certain filter. [I.

. rotor.

'-=1`X""` I!,' r"P .I~C.l el ""' lI1DrlAr!S,,1Iu,, to distribute mcoma and of, whi.c*h P .,d .In table

Pulpit s

boxes the following items which were repeat An I ut,

I .,

rc a- '

. million ticket b ken ; essies, etc., oxes and se.t.!.1,.1,P.

rum fdeps.

=,:.it at

blolx'l salles-cluding over price ; club di,es, etc. ; documentary t-p taxes a

coin operated nT-m . :nS . at devices nI bowling alloys, mot tables .; iFffach' . )an . . y 1 1965, in . ele. . `c.;

Corp. he ..Co

. 5,000 of net

income normal tax of Z2 percent ; net income in excess ~t$25,000 aotm2bined normal

528-466 0 - 73 - 10

and -tes of 48 Percent. Normal tax . .it suit, . -Is- -PPIY to -At income thermal!

by certain exempt organizations from Unrelated trade or business, Effective

January 1, 1968. a 10 percent Per annum surchatle A, added to the tax .

(Public

Law 90-364). The 10 Percent per a-unn surcharge -.,traded to December 31 1 69. by Public Law 91-53 and then extended to June 30, 1970 by Public La~ 91

T172 at 3 5 percent annual rate .

, Rates of tax are AS follows : Individu if income tax : Effective January 1, 1965,

graduated at,, AmAO [In . 14 Percent on tasab a income not over $500 to 70 percent an

n t

to (

Is A Iaxaba income over $100,( 0 . hnylfu.l~la 11c.,on

and hospital os-rice

A In .a.

,its to P1164

In. ID P.

annuin surcharge at it by Unlic"Ll.f. 90 1 effective 4,11 1~ 1968, for indi .

viduals, . ., extended to December 31, .1,969, at In* same annual W . (Public

L ow 91-53) Aond then extended to Jun a 3 970 ( Public Lt .91-172) At . 5 percent

an nual rate . .

Rates of

to' to a Income Tax graduated withholding in a,,.,ofevemptions: Pubill Lat,1819111 effect,,

. July 1 967

L ow 91-172, effective January 1 : 1970, 14 to 25 ~erceni. I0'Id`.'..'. ,

a bili ty and hospital insurance level on and . .I,. up to $9,000 At. .. S.A.

reefed to a FICA to . at.

A 15

.2 Prc Of ( a. and 0.6 Percent for hospithl insurance) let CI:~d .r

4j's.2.1971 lZrdl-9~7ia! ESff,-c1rjteY I

I , 1973, the rate changed to 5.85 percent (4.95 ~vx.ot I ., Social Security a%'I'.4

top A to

I A, x an_

. A

C to,cal . .dar

'Area

A

I

I "

h Ins,

P I A 0' "' "'it

PtPy., to an

Y"

r

I 1

72 In

I an

n

' a

r

"

'a

' "3 a - -P ,A and a ..

he 'b is

cmn

p

._t .

.O

in' I M and I '- in 1 71 ' 'so ormilly

in'

, to P " in no u

r

.

.

. .

.

. II , Th

a- is P th, , Ill

. .

.

. hour Heir"'Is " I I I

. th

rrin~ h

-h 31' is

oh. rat : 2

in A '" A

a "It'

it

to

I he a " I a A ' I I

S

,P"Ay AS

a pilsen

.ty

. w

I, ff . 0 it At

Iff

. L

.

t

T A

AS

_p

.

. it on I

.

. b I A I

. ,

'

.

0 of - a

. a. I

"" it

'it I .

Pro "

.

to

P 0

. , - I

. , co

in

P -

n a

.'

-

n

'

. C. ' ad - '

"h hn

g

can P " '

. pro

h

I 3D JI '

. .

n 'at Or

par man.

to

. on e

" - , I or" p "

. Pat it I

. or I

. Sees

an

Or. .1 each

be. . I is

. .

u~,

n

to

P

er

an b u , July 1. 1970

h

c I

. A at , I A A

n.."

. 'up.

30, 2

5 '

an an

ly 7 Area' ya

and a..

the Railroad Retirement Board P,LS91,211y lur be P 0

u .rt,, by

I

ripludes rail np ' .a , employ...

. ...nt .ti,. tax

, 19 .9 P 1

. 1 , as , M and ZI .2 percent I

., calendar yet, 1173

on '""" '0"1" Of wages .

loop as and

11-fill, .1 stocks and bond,, I Posted, i'

0

Cents! each .

Of to $500. 55

.

J`d`iH`.!n.I 'S'5'0'0 or F,'a1cI,m

effte~ctive January 1 1968.

"Cutting oil. Automobile parts and accxn~rn . (except truck pans), .pe .l .d

effective J

anual

y I , 1966, (Public Law 8944).

`~Tsxez on passenger automobiles and light trucks repealed December 11,

971 underthe RevomeActof 1971 .

"R elne"'d '2 . ... . bit' a ItoI' Air c.odi6.e~":."!V,`a,%1`Sd, -1-fil- ly-I IN,*11.5"Isfidpraton and fireaters,

oftled. effective Jupl,2,2 1 it IT . 1965 (Public Lo

w

:' : :I:d : :ff"" . "-~ Il 1966 Purlic Law

0

M active Pool .

lecember 31, 1965 (Public Law 99-44) .

So

This tax Was Cortho

ued at

0

percent by joint resolutio n And the Rayeri-nd Uponrif 968 (Public Law 90-285) .

dit-GO rolActoIJ-28 .1 (Public Law 90-354) . which extended this rate th

`

AW Do ".be, 31, 1969. T his W . We, further ...

She w A

t.

~1nI1dsSp=1b,r91l, 1972

by P

Oblic Law 91-614. Effective January 1 . 1973, the

Narcotics. I cent p:;"ounce: narcAu,, to,, bI.pk,,$1 per hundred . Met! .

It us pd rJu ;$01cpep ouncel a it ; marihuans order tol an its, 2 can to 1 . In . Amount, hA .n .1.

in led cu fiona Ales - On manufacturers, dealers, and practitioners.

"Ap"R led, '""i"effective "' ' ' '5 July 1, 1111 'P'b'i' L 'P.11!lc* _VITW 892114) I .

:"Adulterated buller, 10 cents Per Pound. Process a, I.O.M.nd buffer . -A cent

per pound. D

omesth,

filled chA ..

. Pat pound. Imported filled chwaso, 8

cents per opurd . Imported dulle;n1toce"btutter Oil ine, 15 cents per

"On

I pound tax=nevied On manufac a olsoma~ga`

. Dczupa -

and tur- or do®r an in those products

are included in the IS shown.

-1 Transfers of machine guns all oti

berre

led 11

Teatm

a

. silencers, etc .. 3200 each ;

certain

fruirl with comb nation ;no

ISO n a

a nd riff

a

barre ls~and One

, special types,of

firearms,

l"

each

. Oc Clipatural I axes a

re

I

all

sit

an

'a utachure

deals n . Import

. in finl1r ., And a,10, included in the amounts shown.

at'- Negative figures ran Aching u,spipfied colloclioni.) It.. P'.1 .

A'k credits taken on certain taxes repeated by he Exr1sa To

zily Ind. no.,

1965 .

drictl.n Act of

133 35
I

De

Th

i

134

Table 5-Internal revenue refunds including intereD

Ile Thousands o~dolfins]

Indi, dust income and

Internal revenue regions. district, States and other

Corporation

. npi.y.mita. . .

Total I.... Estate Gift EC13m

(States represented by single districts indicated in Excessive Other

P

th

of eses ; total for other States shown at bottom

cable)

.payment '

(1) (2) (3) (4) (5) (S) (7)

United States, birtail_-------------- .

. . .. . 25 .9104 .05D 3.013.025 21 .442 .506 969 .820 62 .057 3 .403 314 .037

North 'Atlantic Region -------------------------- 4 .427 .913 932,949 3 .366 .587 92,873 15.930 i .oz7 n .547

Albany_ --------- _ (So. (0 below) ---- 193 963 34

1 6

181 52

8

3 114 680 11 294

A ugustra.: ----------- (Maine). . .--- _ --- : : 97 693 7 72: 6 87 49 8

1 : at

570

6

52

Boston-------------- (Massachusetts)-----_

Efrooklyn . ----------- (See (c) below) ------ _

763 .95 7

852,769

101,966

81,745

643,03 9

751,071

13,86

11,8363

2,299

1 .469

7 9

63

2,722

R 6,586

unalo . ------------- (So. (c) Indion) . .... . .. . 593,908 63,520

1

8,769 W 146 2,366

1,11irrillim No ----------- (I....III)......... . ... . 42,958 2 933 39 09 ~ 2 945 52 3 16

ftend------------- (Connecticut) . ... . . . : : : :

M imintiften (So, (c) below) . . ..

1,195 411 87 7

:530

:

74.02

575 7325

391,27 0

574,812

10,015

29 638

3 077

6:695

s2 7

.7

466

7 :924

Portsmouth.-------: : (No. Hampshire)------- 98,142 6,836 79 692

1

45 1 P : 149 2 2

(Rhode island) . . . . . .

At 14r It;nou'."i - -f : : ,

is ----- * -------------------- ,

112 :215

3 . 613 207

310 22 0

94:361

1 :

00 326

3 .179.849

1 .4so

56 .974

On

4 981

4

312 46 .1130

B.Itiom ..

...........

. (Maryland & D .C.) ------ 689

. '33 76 ...

59

1 ,

1 :

247 57 6,353

N . . .,k___

Phil .d.1phiK : ------- INNw. (a) b1lo,W) ---------- I... T)

912 .471

938,978

91 89 : 9

861

ul,

827 5S2

791,768

11 411

21,266

507

11 :34

6

22

32

20,044

15,706

(So

.

(a) below) -------- 522,265

:

11 738 4 3,11 1

5

5 .413 47 7 59 1 466

Richmond . . . . . lVagini .) ----------- -

,

511,449 46,439 455,003 6 90

6

320 13

Nil

So .

,he Wilmington . ., ---- : : : : . : Dole.., .).. . . . . . . . . . . .

I ----------------------------- """

78 10

2. 592 :7117

1 :46 5

2082 413

56,893

2 .3011 .734

2 :053

S6.DD6 7 . 46

12

9

242

493

17.651

Allinnt-_------------ (Georgia). ..... ... ... .. 453 .194 31 24 1 17 141 923

9

Sir 12 21 6, 511

mingi --------- (Alabama)... .... . .. . . .

Columbia. S th Carolina)

263 .065

212,640

15 : 19 8

1 1 717

74 ~

1 344

111 11

5:296

3 398

54 3

28

12

6

671

~ 302

G North Carolina) ..------ 420,200

33 : 1

63

~7, :

03

9

6: DO 36' 65 7,211

Jink.-. . . .. . . . . . . (Missudippi) .--------- -

Jacksonville --------- (Florida)----------

132,961

711 111

8,51 0

61 114

120,

931

111 111

3,023

21 1 74

142

4,111

7

92

248

1,692

No lh~ille ------------ (Tennessee )

1

:950

35

. 22 :

013

3 1 2. :2 :2 ,1

7

379

32

9

1`4

Can tral Region----- ------------- __ ---------- 3.650.571 337,725 3.166,042 51.501 7 .IS4 2111 37.11

Cmcimn1Ii__ (So . (it) b.1ma) . . . .. . .. 569 "

904

ir 81 810 474 296 1 13 1 1 091 72 3 .215

Me divid- (Sao (it) below) . .

On it-------------- (Michigan).... ..... -

,I

929:453

1,2 1 1 174

1 :

15 802

131 111

:

l'O699 060

1 1 113

10 : 55 0

16 25

7

1 :090

206

1

30

77

261 : 8

-

:::

n in (Indiana)----------

India apol ------- -

~ : 7" - go: 8 52 ~ : ,

09

8

:367 :

8

2 04 10 3,13 4

Lou il (Kentucky). . . . .. ....

c"' Is— ------

267,972 3 396

1

247 .3 4,656 922 16 1,762

Pink-b ., (Wes V me)------- -

Mitivionst Region __:::::-_. ___ .t -i'li . ------------

161,157

3 .404 .979

0,714

33' 613

147,

2 .915 .8941

2,29 1

70 .009 . IU87

2 4

376

144

21 .44 9

Aberdeen. . ... ....... (South Dxkpu)~ -------- 45.317 2158 4D

.

911

113

1 1

1

7

5

C

hicago . ------------ (Sea (b) bmlmv) ~

Des Memo .--::=: ~llwl) -----------------

Fargo..... . . North Dakota)---------

1 .218,82 7

244,534

42,444

167 .17

4

IS

. 833

1,098

1,018,757

218,109

39 500

:4

24 8 5

6,36 9

1,594

2 .77 5847

125

17101

4

5,459

62 7

123

Milwisikeni--- ~Wiscim in)-------------

N

465 .380 43 03

4

4 12 1 6 : 10

'

:::: 711 55 9 13

Dinah. .. . . . . --- Neble, )------------ 133,153 15 407

1 ' 0

7 76 4

:"0

569 17

52

3

S

LO I ------------ flMi"oUr0 . .__---:::::

I: P"

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

(Minnesota) .

111 :187

451 457

55 .794

11 113

427 .852

117 315

11 .74 5

1'

1, 371

478

4 2

15

11 .082

29

Springfield -- -------- (Sao (b) below) ------_

thw.It IT.91; -------------------------------

Z93 .87 9

2 .457

"

2, '5 : 2

" 171

:

263 7

"

2 .

'

.802

4 : 1

17, 1

11

6. 782

433

54

323

N5

7 . S9 1

Allbumuerque (New Mexico). 11111

11

3

: '60

62G

86

1 .

3

199 11

Austin- 79

. .------- _ .

(see (0 below)::::::::: 6 ,779

go

99,459 57 5 .z79 21,94 5

1,

....... 924 64 2,206

ch

.'""" ------------

(Wyoming) .... .. 33,514

03

1,3 30 1 3

1

41

Dall- ~Sxn` (I) below) --------- 1 - I 2

Denver . Colorado)------------

479,97 3

278 .436

Go 432

17 : 552

4

1

400: 5

253 876

:

14 982

6 369

1,138

423

47

11

2 .959

Little Rock. . . ....

.... (Arkansas) ---- 137 .172 10,464 123 :945 3 :079 211 25 219

New ---- (Louisiana). .... 316 .621 752

'1

287 .116 6 .340 994 97 331

Oklahoma CItY ~o Lihinc.)------------

Wichita. . ..- Kansas).. . . .. .........

_

234,199

193 864

213: 362

11 396

199 .923

176 069

5,652

5 30

1 .

14 2

463

1

23

14

998

544

Western R .glo ._ 4 .962 :525 441:695 4 .2N :764 100 :135 12,041 a V

10

. 062

Ae,h . ..j

Sense ------- : ::: :::: (Idaho)... . . . . . .

56 06 1

11 172

3 , 54 0

7 31

'

51 . 25 1

6

' 15

12 :11,5 '72

1 .1 5

Identle .) ----------

I . lq . : I

2 13

_5

5 J 3

74

2 11 209 7 20

ii )

I . Angel ---------- (So, I.) trume) ---------

Phoenix . . . . . . . . . . .. (Arizore) --_---------

113,004

2,165,774

234,489

13.84 0

221,931

12,587

11 1

97 .

1,893,29 4

215,932

I :~

78

40,182

171

'

1 19

5 .066

617

1

390

14

4,925 60

6

Portland . ------------ 271 69, 36 246 227 995 7

6 512 :

54 7 35 6

R o. ... . . . . . . . . . . .. . (N.ada)-- .

S:lt Lake City-------- (Utah) .. . --------------

.3 :

. 1

3 1

2

:

3

47 2

. .

:

77 985

583

2.009

2 6'

1119. 12

123

Sao France= . (See (a) below) 1 .271 1 5

:

459 .05N3 4

9

1 .133 :

62

25:

111

4 002 394 3 . 1

Smiftle___. .. . . . . .. 411

. .

31,739 366 .093 10 99 1 130

1

OfII so I' l23

of Internet[ .. I opturrati. . ... . .... .. . .. .. .

Puerto Rim------------

103 :206

19,719

15 .39 9

245

go

. 71 5

11 17

6.52 5

2 019

SIG

19

If

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

15 9

139

other . 417 1! .!14

63~

488 4 :506 311

If

20

Gitsolln ..

Bureau of Cmdoms . . ., ..---------------- ------

'0

611

S

1 . as

. . . . . . . _. __ . I

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

....... ...

... .......::::I -------------- 4711.95 6 -------- I. . ..

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

: :1 142.

1 SSD

. 3011

. . . . . . . . . .

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

(c) New York .. . . . .

(I ) Obi- -- ----------

~e) t) Pennsylvania_.-.---

ins an -------_----

Total for States Oct shonso above

3,439,233

1 .512,706

2.836 .070

1 .398,357

1,461 .243

1 .170.751

327 .865

190 226

72 346

1979 :612

170,599

149,991

3,027,256

1,282,543

2,025,565

1 :2173 :16

44 879

975,694

66 .163

29,336

53,407

19 930

21: 671

ji" 927

9 .068

3

. .

S

:6"

21 .171

2,962 . on

774

232

907

142

it!1

8 '

'

: 1'12

T 15 6.2

17, ":172S

I Figures have not been reduced to reflect reimbursements from the 14d.,Ir" Did

; A" "it Su"I"ni

. F .d,.l Onnibility . ..it Federal Hospital ln,u. ...a Trust Funds

amounting to $478,856.000 ; from the highway Trust Fund ."uphns to $1 73,ODO and Ins. the Unemployment Trust Fund mounting to $20,820,969.

Net of 7`,669 undeliverable back, totaling $18,20SODO.

I ocludiss credits for excess Social Security payments under the Federal Insurance Contributions Act (FICA) of 3478,856,001).

4 Includes credits to, c . it I b, at 11 rum gasohms an U 1' . ons 0, ux Payments .

T

Table fi .-Intemal revenue refunds issued by regions, districts, States and other areas

Internal revenue regions, it!, lists, " States and other Individual income an d

employment taxes

xisins Corporatio

n

(States represented by single districts indicated in

Total nomem

Excesn's . Other

Estate Gift Excia.

Parentheareo; total for other States shown at bot.

Pr P

.Yrnemu i

tom of table)

(2) (3) (4) (6)

United States, total .-------------- ....... 63.1n .g&4 275.1DII 61 .088,325 1.686 .402 16,345 2.426 55.28

North-finescrica. Region- - - . - . . . - - 9.652.581 49 .561 9.340,293 241 411 2 977 403 11 019

a

Albany -------------- ISee (c) b low) . ...

Au usta M i

544 .176 2 .254 531,981

9 :378 .

1 61 to

.

j .------------ ( a ne) -------- - 392

Boston (Minuoulnuumust I f,4 1,

1

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

1,505 301 .829 7,514 87 9 176

_

Bnookly ------------- (Sao (,) b .l .w) . .. . . . . . . 2'109N.'23

11 :5187

4 3'

2~1

1 :231129

41.

5'

5

:1, 3

531

'7 '47'

73

Buttal------------ (So, (c) here,)-. ----- 7337

_ _

b di to V

1

429.44S 7,11

9

u ngd n. . . . . . . . _ J armint) 1 .411 .150 31*511 419 11 798

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

He C 1

140,010 608 134,490 4,795 31 7

_ 7 9

~ So'11(11 . c) iciul). . . ... ... . .

.w)

1,003,274

If

784 9e5.949 26,857 349 51 1,284

3hire)

~ . " H.-

1,50,143

257 09 1 :

4 114

1 . '

-- .

b1,336 649 103 6.560

--- -

1a

nd

P, ) ------ I~ a o Il 1

, 3

331 .536

166

1 97

: 7

24 1

323,061

6

'21 6

6 .307

70

58

7

9

112

Mid-Atlantic Rettion . -------- _ ---------- ---- - 32

altionne M l d A D C

1

9 .337 .997

:

34 478

9 .

invink ------------ ( ary an . .) ---

10Z.617 191.931 1,735 VO 6.966

(N - ) . . )

bb 59

1 : 9

7,54

8 0" ?

35 111 3 7

M

68 960

, Y -----

Ph1l.d1l'p`6ii :_ ::_ ::::

(S: . (a)

below)

2 29b 923

2 355 08

8,325 44 2 2 :57

: IS.

42 52 ,255

S11

... ... a

. .

3, '

9,235

4

2 2 2

: ": 1 '3

1

'N

496

7

7 2 .1 33

~~ ,' nia b

Richmond fl, ----- 4 33

.06 4

3

1 7

35. 4 7

1 .4 17 71 8

24

33 60

2D4

11'

37

21

7 1 1

'

S W.Iml nice -------- - (Delaware) . ------ -----

th t R i

17 7

9 0

1

:3l .

' 7 3 :

579

4

i283 32

U

439

o.

mis eg on----- -----------

Ali' te (Ge i )

3,

--- ---------- org a ----------

429: 77 32. 68 8,141 .220 211 6 1 .693 289 5 .767

Sir,qIngham (Alabama )

1,31 :311

897 37

1 3

:

31 4 1 .3 "

38 :

S3 2

2I 1

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

Cot -------

(South CaMlma)

;aTb Fa __ - ~ -

713 935

8 5

2

2 . 36

:

17D 4S

,

731 297

23 9389

19 :4

I S

135

33

24

61 5

Gr .

604

1!:: : : :: ail

I

M U 50 473 5, 67 1 .41,2 341 40 697 319 42 7n

1 acksonville (Florida

503 .770 1,724 485,81,4

I

1

:

. .

_. . . . . . .

99 21 44 6

ashville (Tennessee)

180,70

: ' 1 5 3 2 .. 012

"' .

"

112 114 1 .42 2 - ---------- -- -

Cent at k , i n

1 224,2" 1 7:~ 0

N

111111 ~l :. 31,1a s 112 19

'

04 ... . .. .. . .. ..

iiml ~ % i IS , 711426-b'w IS '

3

329 8.783.819

IS

64

'

1 .472 235 5,87 0 . .

Cley'land__... .. (San (it) below) 1,91,7 .919

7 .924

9 .886

1,387,544

1,918 .742

30:DO

37 .730

284

294

5 1

61 1 20. .6

Detroit

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

. in I d

2,741 .010 11 114 2 17 2 111 4 '71

5 7 1

,

m 1 53 3 Louisville inam n ian a . .. . .

(Kentucky)

1,559,015

43 775

4 :,

-

1 : , 7: ~ 1

51

4 96

3 2 1 2 35

.

1 .245

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

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

Parkersburg (West Virginia).. ------ -

---- ----

8 ,

479,991

2,598

' 4'3

818 .1300

4" ' 4

22,296

9 " 1

13 5

45

13

4

'01

Midwest Region . . . __ . . . . . . . 324

.

Abindem . ---(South

5 .854 .975 14:959 11 .5IS: .55 279 1 :4 9 3 .141 366 3

'

-__---- -

Chicago (So. III) below) : : :

:13

1'1 '

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

141 213 9,556 67 5 277

. . . .

Des Moines (lows)

7

0

2,7 4 5

73

7"

13 .905

2 :

----------

.,72 1,911 68 324 887 103 1 .71 1

.- . . -

Fargo. .-- . ---------- (North Dak~ti)::::: ::::

1 :~1

47

08 3,44 9

'it

704 .68 6

1" '12

:

31 764

10 ..

422

72

24

13

82.

Mil-ke .. .... ... ... (Wisconsin) 222

---- ------ -

O h (Neb k

1,325 .094 7, .45 1,276: 418 39 58 : 8 381 11

7

ma a . .--- ------- - ras a)----------- 1 .1 7

-

St LOUIS (Moun i)

410,74D 2 .296 386,568 21,015 266

~

7

. . . ---------- . . m1 ----::: :: ::

St Paul (Mi esota) ------------- nn ---- -

1 :111 :743 8.732 1,304 .385 38 .965 397 45 1 .21 9

S rin field (See (b) below)

126 0

So 5,026 1,096,924

12 Soo p g . . . . . . . . . . ,. .

818 307 40 131

Driven

832,995 2,997 902,301 26 :723 342 34

5 98

.no ... .. .

Album .

7.211.181

30' 736

30.07

7

1 :2 6 4 .929

29 3565

Z22 4 a 7

:097

1.919

78

383

is

U.55

Austin------------- (See M below)-------- -

Ch e e W I

1

. 958 '500 "Y rm -__. . . . ( Y .- m0_

7,728 1,987,074 57,401 479 113 -5 .705

-----------

Dallas (San ) t) bel

101,426 530 96,941 3 13 33

5

. . . . . I -, - 1 09

o Denver (Colorado) w

1,31 111

7 2

6,341 1 .336 .262 47 :581

3" - - 7 0 2 .296

. ... ..

Little Rock_ Arkansirs). . ::

58,228

490

188

2 85 9

2

:

7

08

733 :923

47 936

2

20 75 2

14 :541

167

04

39

16

488

45 4 Now Orleans.-- . . ---- (Louisiana). . .

Okl h Cit Okl h

941 :763 3

0

4, 0 1

.40

91 3 Z5 . 130

1

a oma y_ ----- ( a oma) ------- --- -

61 41 9 3

Wi hita (K

701 481 2 :963 175 48 2

1 7V

229 4

1

7 6 c . ------------- noma) _

Western Re ion

609 934 3 022

:

g

582 910 23 : L 274 33 552

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

Anclux.fin (Alaska)

10

. 407.207 45,575 10.064.42D 286 900 3 .421 470 1 .51 1 . ... . . . . . . . -------------- -

Rose- -------- Od,h.)_ ------------ -

N :

20795:031

50 1

634

14

1 '

90,972

111 2

:

3 035 1

If

14

1 1

6

1

10

1. 2

294

oun ------- ----- (Monte..) --------- --- 196 . 25 9 :429 8 : 95 S .133 79 13

11 , I A el IS ( 2" 2: " ' :233

211 ~11 5,982 43

9

1 6 ., ng ,.

Phoenix (Anizo )

4,02 4 IS 7.

'

3 904 786 11 114 1 .4"

137

1,80 1

-------- ... . na --- -

Podhod._--------- (0119mr) ----------- . . .

600

:

736 6243 1 1

3

ON

5

70'5.472'

17 :3

L14

24 16

174

Ifill

30

30

24

665

R :no . ..------------- IN ...do) .... .. '33 176 812 187 .696 5 .298

B

1 4

S

It Lake City (Utah)- . -- -

S F L

333 :316

1' .R

an , .nc . . ..

323,099 8 .690 6p 7 213

.. ... (San 0) be

' U"

2 706 :632

: ''

2,

621 64

7

7 1 23

1 ' .312 1

42 2,02

jjj;jj7- im) Officeim.1 In 101181-6=

1

045 935

167 .690

5 ' 207

427

1 . :

OG6 602

148.051

33:

003

19.053

7

3 2

97

36

10

71 5

52

Puerto Rim . . --- ---------- 37 .033 18 26,246

10

.762

- - ---- -

Other ----_------------------ -------------- 130 .657 409 1 121 .806 1 9,291 93 48

Totals for States not shown abonne ,

(a ~l itnmla... . . . . . . .

~ I

6 .7Z9 .127 25 264 6,526 433 70 . -59 2,421 321 3

1,

ll1 , i

(U

-------- _

3,590 ,12' 16 902 474 99

1

:

,

:95 ,

229

1

1

37 2:31 5

(0 No

. Y

., ----- __

Oh

5,688 . 597 22 957

: .

5 500 351 14 1 :746 227

'

io -- -

ennsYC'i~ni:::::::

3:311:

4

735 581

go

171 :71 0

3 299

13 .3

.&at NS7

7 730

76 .341

578

69

0

1 1

2

114

2 :165

3 444

(0 rose,

.... 3,351,429 14,069 3,223,336 104,932 868 183

.

7 .99

1

I Net of 76.669 undelmera ble refund chenAL

135
I

136

Table 7-Number of returns filed, by Internal Revenue regions, districts, States, and other areas .

internal revenue r1gions, districts, Statezrind other

areas (States repr.~er~fad by' single districts in "" a .

dicatid In P-1--theem; total, to, Other State,

shown it bottom of table.)

ttol

1 )

L

mli,id.. 1

in.-- is,

2)

.,m,xti.

income fi xn

3)

artner. ship

4)

Decl.ralf .

exti.

..led is .

and .11

Other

,.Co.

is..

(5)

mployment

W .

6)

xistaxt

7)

Gi II

to .

(a)

.d .

i.e.

(9)

scis

United States, toul_ ------------------- 116 .9.40.404 78 .997 .937 1 .946 .534 1.043.4D4 9 .018 .954 23.9".45S 201 .975 243.995 1

.4U.347

Niurth-Athipti, R.Sip----------- ------------ -

Albany ----- (See (1) be]-) . . ...... .

' -

18,27D.605

1 003

90

12 .042 . INS

258

691

111 .4

16 :550

1 . HIS

4 :125

1. 1. .1

:

1 . .. . ..If, IS.CcOi I.. I.

Aug.,ti . (M .m.)__ ------- ....

------ --

. ,

568,877 381 : 553 8 645 1 910

73 91 2

42 347

'

199~675 8

121 46

2 .9164

03

1 :622

059

15,620

Brunon 0 71 4 .

. (Massachusetts) . ........

Ilmokly. ----- -

3,442 .508 2,360 .194

7

2 :444 9 :548 3 571

29

626 73 1 1 11 7 11

,

3 1 11 4

-- R " Sea ~2)

12 431~% :1 S3 ~3l ,111,542

1

09,770 2 .219

29,

: 44

'

:7,6

723

9:

603

7 :

296

3 , :

699

Bullingto- (Vermont) 279 292

1.171 If :411

. 7

38,016 11,304

185 .

729 433 954 5 21 7

'

4 660

'

I .SD6

'

Me ----- - - . . --- -------

rtford .. ----- (C-ect,cut)

,

2

049 362

1

66

311 71 --

4,934 1,395 22,664 65 :02 448 579 4 91 4

. ----------

Manhattan ---- (Sea (c) belum).

. -------

. ,

3,580,158

:~ :I

70 99

1

1', 19 :" 2

298

32 382

53 :990

195 28 9

389 :227

389 :1

970 651

1 71 :8 1

67

5

14 :930218

19 60~

:

4 5

: : :: : ~Nir* alrefulim) . . . . . . .

Por"Moul ~

463,316 315 .035 8,320 1,499 35 .05 93,643 716 927

3 , 98

hod Island 7 50 1

)

Mid-All-ti, Region -

.417

171331 196

3!17 :181 0

f 444 67

12,775 1 .696 41,223 105 .944 683

776

,

4 52 0

. ..... ...

B Iti . .,. . . . (Maryland & D C )

,

2 819 085

t

.

.

1 973 753

2811 .9108 99.817 21.958 .187 3,2L2,619

26 .

: ruk 669 29.644 173 :12 6 . ----- . . . ---- -

~Srw Israel') . ... . . . .. . .

) --------

, .

4,489,1251

4 012 71

2 , ,

2 :

992 03 3

.14 1

152 :.1341

17

11 213

654:67098

1 12'

211 3,9 :991 17

Its 1

131,13 1

896.54 7

757 .

39 27 :7271 1 :4159,

a

244. :,ga7s

(S:: I:)

Pittsburgh.. . ------

, .

2 3" 018

1 :

.643 34D

:

24

115 3:313 79 :.,

,

421,192

1 :7H7

2 99

1,207

3 139

39 .269

Richmond ----- ~Virginhs) . . ....

28 375

Wilmin to, :: : : Delaware)

: 5

2 93:

338 _766

1,797 .7bO

3

33 .257 . 20,040 166,908 529,003

,0

4 74 5:31,3

,

k ---- --- _-------- 26,944

theist Oil- ---------------- -----------

,

16 032 037

22 .225

10 623 172

6.51 8

V9 119

312

122 050

30,599 71,875 623 937 4,677

A !an .... . . . . .. . . (Georgia)--------_-----

t-ini Al b

. .

2,503 .437

. . 7

1 .60 . 50

,

31 947

,

17,&06

i .D9147 :110 .51

3 .

599 9 681:0431 221: 1

616

11 .7 .

5 .672

196:509557

m .------- ( l ...) ---- - 3 0

Colo his (South Carolonsi

1,638 .376

59

1,105,5

60

1 9

: 4

?"

1 1 86 Z 89.079 386,894 1 4 li

""' .. .. ..

.- . ------ -

G,. .. . bor----- 1 rin so

1,3 .73 2

2 767 429

921 ,

1 883 057

11 :1 9

8

111 71:1 1S

3I0

1 :5 ~

-- 1,672 20.356

: : 1.i cp

Jack so.. . . . . . . . .

, ,

9",407

,646,

11

3 9

12 11 1

, .1

57

10

,I9

163

11 1 11

' S 7-11

213 414

3 .31 1

1 1 1 1

5,576

1 161

32,851

Jack-ill . . 1 7 8

. fflcuicht_ --- -

N .unill. (Ti u eei

4,179,371

:

2 .995 3as

9, : 1

63 35 933

: 074

441

I .OM 420 : 10:9 &2 ,

'3

.203

1,:

..... m snu . . . . ON

C.

tral Region. .

2,184,285

15 712 975

1,512,91 0

11 043 194

24 :4 27 17:49 124

: 081

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

. 472,455 2 141 3 612 26 .63 0

~1 ~ b: :1 -------- -

l

, .

2,535,535

. .

1,1 11

219 5

44

34 11

1

31 70 . 2

411

1 a

1 .

162 0 2

19 .41 .

5

2

.

904.132

45 003

0

:

23 763

3 99 5

: ,

21

4 02538

700

ZDZ29 . 325

~

C Ow )-------- -

rrd

Detroit (Michi l. .)

3,338,045

: ,

2 .339 59

:

1

593

3,

7 2b9,322

:

612 320

: I

44

:

5 597

,

36,194 ------ - l ..

::::

I

Indl...poll .- : 1" i

a

4 .610,221

2 771 694

3 271 551

1 957 312

63 .812 43 .441

3 2 29 9 6 &25'7 535' ]gG 97

1

6

64,21 1 . ._ I ' ~ ~d

Lwisvjlla . ._: : :: : W for t Vh " k s Parkersbur

1 . ,

617:541 ,111,512

37,150

21 .119

21,756

21,121

2 :38 1

1'141 445

4 1 7436

3429: 92

52 4l

927

:

5 166

2 944

1119 70 :7713

es fpM A)__.... ._

g

_ (

Midwest Region

:

1,

839 93

523 "5

. 5775 75 4 5 6

:437

i j:11 8,626

55 :

140 173,&38 1 111

:

1 31 11 494

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

Aberdean___ --- (South Dakota).. . .------

.

.

373 .551 238 .695

26 3 j ~

9

5 04

2

151.190

1,11

943 .925

21 413

3.3711,468

'6

3 :.

. 50 5

1 64

4,.

659

1 170

:

234 622

Chic 9 qN

Day Up

4 IJ114 :6 5 3 .383,135 711:851

5

4 .416

:M I

251 J38 - 1 1 5 5 1: 331

,

10,709

.

37

3 ' 1 F. DI1* 11

"1

311 1aO4

1,114,71171.

227

23:112

4 653

1

1 :111 1

9

1 :1 311 :2 11 1 73 1

a 71 3

, : .

one, . ,. . : . .. . .. . . 2 07

M-1waukee .---: : :: :

"1"

.U 5

2 461

.

1 7" 1

42 14

3

6

9 17

4ij

22

132 214

,1 2 70

4 1

: '6

1 : 53 1.683

orn.h. ._.. ... ... (N .brank .) -------------

:

'905 4. '517 :412

~

14 428

1 1 :

798

: . ,,

71

2,147 :3"8, 3 : .15191 :,14,1 4,:7"

Low 01 ---------- (Missouri) . . . . . . . . . . .

SK P l' : : :

5

' " '11

733 7

1 1

4 11'

'

11 61ill 127 7 14 155 539 3 1, 1 ,5,

1 ,

9

a u

Sip, 'Old----------- (Mm

.-ts). . . . : -- -

mat

(Sea (b) below) ----

:0

2 7~ :1

1 571 111

~8

:4 : 87

1 111 413

I

32: 0

16 "1

:

13 02 5

11 405

~ ,

148

5, 4~, :260 4 :54 7 :

so

3, : 3

Soo : : : : :

thwart Region . .... ... ... . . . ..

4 :fT7 :MU I: 29~:

564

;1' :

. 568

,

174 676

74 :504 9 3,

930

~ 3M:

39 966643

1,4 at4 :7 1 3:31

91

33 63

20.104

Albuquerque - 47 416

"

A ti ::.: fS "'

" 2'2

3

4 "" 7 40 1

.

5,837 30 .458

.

120,113 526 579

2 .

us n-------- - . ( 41 5

)

Che eim - -

(W omi )

3 112 : 19 11:121

y ---- -----

1, 4 47 : 5 11 115 224,291 791,639 ,1 .9 .13. SI :113

y ng . --------- -

D.11 - - ("1 1) below

n3,506

71

141

634

,

139

: ,

1 63 16,468 53,321

: 4 .

04 945 4 .96 1

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

Dan --

1, 1

..7 :. ---------- -

1 .141:111 4 3 :11 41 % j1 1 Igs 111 111 6, 006 17 1

Little Ruck . .... . .. . (Arkansas) -----

.~~1

1741

1

95,

442

112 7 03

4

89 6

14

`13 '

: 40

18

"

o~ : 1 2 ..:0. ~

:301

:

048

: IS

035

New O'leas I (Louisiana) -----

1111 :

I:7 111

: ~

1,166 72 32 d4 5 1U1 .95

2

1IS :'72

143

4 : .3

1 :11

654

2 17

Oklahoma City_ --- Okl3homa)_ 2 :4 'El "31 :7'817

Wi hit K .., , ._. ....... ( ansas) .. . ..

1 : 411 7 19 128 12 11 416 16 011 11 11 3"7 111 2 .11 3 11 27 D45

tax, Region

2,,: ,

1

102

:

941 506

12 703 273

IS :

747

I 1: .

3

: 3 :4 7,

41 4

'

4 :,

59

2 :

. ---- - 0 782

A,,rhunyj-- ------

. 9

"1

. .

110,411

250 :90 2

2 943

Z13:622

4 $03

1 .376 :93 5

6 SOD

3 .729 19, 2

33 : 30

30: 937

I D,

32 .790

109

239.647

B 4 976 (Irish .)

MIqla .)

39

431 0

I

215.990 6,610 11 .290 28 .714 96.041 '

"9

,

207

, '

I n ........... ._

Himolu

. ., .7

452 075

1731 :1I p7s

31 ----------

7 :241 1 1 12 11 4 02 041 1, .0 11 1 1 : 03

Los Angeles (See (a) beiow)

.

7 17'

4 1

'1 4'

.0 . 1: 24, 31 :2

64

:

85 573 600

:361 "

------- 04 0

: : :::::::

ph-i-------- (Arizona) 1 ' :021 : 3 40

.

5 :5,

74 2 "

.64 1

I

86 .698 497 .011

1 .

354

T

11 .215

0

M

7

' 1

---- .. . . . .

Portland ---------- (Oregon) 3 11 5 23 510 S D

O

23 :2237 1

87,431 209 :. .7 1 .1548 2 : .9 1~ : 4 6

. . .. . .. ...

firm, ------- ~ : (11-do)

:

335

6

:3

0

233 6 .147

6 26 0

3 199

104 928

20 :770

283,57533

64 . 1

2,194

3"

2,554

700

25,07 9

6 6 94

S'

. . . .

San 1,

577 .42 9

4 1 1 7

398,873 10 .595

1 6

64 35,983 117,267

615 1,232 11 :300

S.. - (Washington)

1 :9~53 :2162~ 3 :1 1 :111 51 :573 52 Z35 382,895 990 .377 9 .375 966

1

offl' . T ------ ---- - - . 62,750

Int'sna"Onal OPMNO573 013

1 303 142

368 515

2' '30

20 :

075 149 628 402 .4il 3,051

:

2 181 .25 440

Puerto --- ---- -

,i- -- ----- -

,

37 142

.

73 111

2 724 0

77

1

n 39:102

1 01,

60. 527 500

:

454

------ 1

Otb.,- . --- -- - - --------------------- : :

fl3 5 :.71

1

,

295,321

.

2

.

3

1

11 1

78 "N A496

152 :S12

7 64 50"9 4411' 1,240'9

Touts for States not shown Ib.,

~s California,

--------

11,711 11 1 1 21 11 131 21

4

131,933

'90'

2 22 13 1

, 1 111 nots, 21 111 28 46 2 . ......... ..

N Y

~225 :913 4 :47 ,:9 IS 95 :IS

2

61

.871

'194

326

1 :

178 119

.,,

876 R :068 M

,

57 415 (c) ew ork -----------

W) Ohi

10,901 .733 7 .056,451

~ff",3

4 1 1 "

945

.. .

32 :979 25 :851 28,096

1

14 : 123 o . -

l Pll

d17341: 7 99

6 "

3 3

a '39 : 1

85 .9.9 31 :3 5 S 464 :740 1 : 2

06 323 9 139 9 622 65 509

fil T e x as I ---------- - .407 .438

4 457 31 1

4,177 .510

1 .31g

90 .857

23 1

94,698

37

422,936 37 7

1 8 4 :

94

.

$20

955

8 6,787 : 6 15,536 9: 34 6 113,15 67 :6443

innceludes estimated tax declarations not .,,liable by districts.

F:~.I.s allies . 7005, tenuity . 1120L and M . and FoIrne 990,990C, 990P. and 290T not m,ailable by districts, IncludI

d"as 638 not a,silable by districts.

Table S.-Internal Revenue Collections, Cossts~ Employees, and U . S. Populations, IM through 1973

Fiscal Year Op tin g

cost C ll ti

Cost of

I

Population Tax Number of employees

o ec on, collectin g

3100

(Thousands) Per

capita Total National rhil d

(1) (3) (4) (5) (6)

office

(7)

1944 . . .. . . . . .. . . . . . . . . . . . 129,941,948 40,121 .76D,233 0.32 138,916 298.82 46.171 4,273 41, M

1945 . . .. . . . . .. . . . . . . . . . . . . . . .

194 . . . . . . . . . . . . . . . . . . . . . . .

145,39D,72 0

174.795,640

43 800 387 576

40:672 :06 :998

0.33

43

140,463 311 .92 49 814 4,441 45 373

1947 . . . . . . . . . . . . . . . . . . . . . . .

I"S

203,916,822 39 108 385 742

0.

.52

141,936

144,698

286 .55

270.28

:

59 693

52 830

5,144

4 771

54 :549

. . . . . .. . . . .. . . . . . . . . 8

1949 .. . . . . . . . . . .. . . . . . . . . .

1

83,731 .06 0

209,205,715

41 :864 :542:295

40 463 125 019

0

0

. as

52

147,208

7 7

294 .39 52 143

:

4 662

: 059

7: 48 1

, , , . 149, 6 270.17 52 266 4,554 47 7 12

1950. . . . . . . . . . . . . . . . . . . . . . .

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

230

'

408 200

245 869:538

38 957 131 768

50:445:686:315

0 59

0 :49

152 271 255 94

:

5.551 4 .303 51 248

ISS531

,

17 1 : 872 192 &5 9 11, ,,,

00

0

42

154 :87 9

1 7 553

325 71

412 .62

57 95 :73705

4

3 :942

: 5

53 765

1

. . . . . .

. . . . . . . . . .

1954. . . .

, 59 0: 8

26 06

268 969 107

6 9 :686:,35: .

69 919 990 791

E3Il 8

38

160 :

184

431:1 13 413 3 '14

:,121

49

-

, , , , .

.

163,026 428 99

" :,1, , :

7,7 48,704

1955. . . . . . . . . . . . . . . . . . . . .

956 . . . .. . . . . . . . . . . . . . . .

278, 834 : 11

299 .994 710

11 : 2

75 1 ' ' 12 49 :I": '000 0 :'4 2D :Z' 3'

3 : 1* 10 191 2

1

4 8 11 1

957 . . . . . . . . . . . . . . . . . . 3 8 1 4

31 ' ' '

1 7 1 7 1

I0 9 000

1 3

sit 1

71 4

, ,I

4

IS IS

, :

1 692

1 314

'

2: 513

2 1

8 :09

4

9

95S

, ,,

317 :4 1 1 :

355 469 228

, ,, : , ~

71 : 4 : 4.4

79 797 7

0: 1

2

1,,:

8.2 '17 :33

a II : I

1

: 6&M2

2

488,76 2

. . . . . . . . . , . 1 7 . ,9 2,806 0 .44 177,330 448 .73 50,200 2,633 47 :56 7

960 . . . . . . . . . . . . .. . . . . . . . . . : .

961 .. . . . . . . . . . . . . . . . . .

3 3 4 :72151 :3

f ' 13 9 23 9.

7~14 21

44 1 "M 9

.

14 : .1 3

0 40

1 44

180,671 507.96 50 .19

9

2 7

ON

41 7

962 . . . . . . . ' . . . . .. . . . . . . . . . . .

963

450 080 420

99

839,24 5

"0

0.45 183,69 1

186 538

513.9 1

533 09

53,690

56

:

3

.

3 3 17

50: 9

64

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

964 .. . . . . . . . . . . . .

0:8,4 31 : 4

50

549 692 131

105: 925 :395 211.

257 :11 5 112 260

0: 47

,

1 11 142

.

.. 7'

:486

IS

:56 2

3

553,153

124 . . . . . . . . . . , , ,

4

0 9

9 1 : 83,

585:03 11,311 3 .753

55: 6

Of

965 .. . . . . . . . . . . . . . .. . .. . . . . .

966 .. . . . . . . . .. . . . . . . . . . . . . . .

597. : .3,17: 41n 9 l

62

1214.:4.7934: 13.t : 7.11, U181

0

1 91 1:3 3 11111:15 10,360 3 79

,

56.570

967 96.. . . . . . . . . . . . . . . . . . .. . . . . . 211

"

10

14 74 11 2

"

4

" 1

0

1

96 5,0

111 71 1

,5,

68

7 41 18

61,689

65 122

3 :8 1

4 0660

7:11

'

. . . . . . . . . .

. . . . . . . . . . .

969. . .

0.

1 9 1 9 : 3

758 735 475

1 ~: :,,

3

1

3 :1 137

1 7

0:

6

2 00:706 7 ,, :4 .

65 117

,

3 W

1

6 06

2

1 1 238 . . . . . . . . . . . . . . . . . . . . . . , . 8 ,919,559 .668 0.40 202.677 927 .19

: 5

64

7

4 :037

6 0:

470

970 .. . . . . . . . . . . . . . . . . ..

971 . . . . . . . . . . . . . . . . . . . .

11 6

981 :06S 97 I ":2Is

7 1

191 :647:

i

n

IS

0.45

If

204 .879

9 I NB 1`1 0 IS

4,356 63,742

27 311 41 1 36,878

'07 I' S

:53

:207 .04 5

111 1 4 2

12S 3

004 85

IS : . 7

74 086 4:1"23' '4 : "'

: :945

62 009 237 :7 17:173,138 0 .48

210 :4

Of

1 .

30 .15

,

71,846 5,046

1

69 2 G3

66,80 0

- R .ui .,d.

137
i j

Ib"

I

U6,

Th

Table 9~Numlger of returns examined by class of tax and by Internal Revenue regions, districts, and other areas

Return . servic

and district " .... . . . lotol

Individual

and

fid

uc

is,,

Corpora.

tum Estate Gift Ulm.

Employ.

art

E-p t

.,a.m.

Tot. I*,f_~: ::::::::: ::: : ::

All n

-

: : -------- Nort I .S70 ' 97 1

20 679

1 log 589

:

fit tuff

'

40 39

9

h 3- gg? 96 620 71 004 "23 640

Ifild- t lartic------ . . . . . . . . . . . . .

. . . . . . .

2 1 1 771

269 137

171 14

21 41 n

16' 77

:

6 495

4 001

1

.371

916

7 :696

. .

South. 6:898 7 :964

Contra'at------------------------------ -

24~ :,,0 L u,2: 7 .

16 525

.

4 028 SIB

1

1 - 4 :71.

I'JI67

6 1

Mid.. ji. ___ :

217

,6 166

106

171.013

190 439

17 :487

21 379

5.397

8 235

1: 2

1 1

1

9

Nfl

7 24

39

7

South-st . . . . . . . . . . . . . _ -------- - '

W

:

206.95

"

,

155 .19

.

11 503

,

4 574

1 5

1 6

1477

s

"

7

21 IW

Es: .

DO 1

4 :14 7

est . .

lot... --

.

303 W

2

. 096

16:

938

:

7 425

t 3

28

1, :

21

f: 2 :0, 2

--- -

North-Atlantic Region :

20.986 19:691

4

45

2

54 Is 136 1 .397 4 7

Albany, . . ----------- ........

14,745 11 4

" 4"

Augusta.. . . 81 757 49 3

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

0

6,352

. :,

.7 SG3

1

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

31 14 506 577 114

,

8

moklyn -----

48,767

81 095 7 :7'41 1 ''4 ' '

2

08 2,264 1 W9

------------ ___ 21338

_

a .. . .....

allow -----_------------------ . . . . . . - ----

.

40 2

1 1

6 19

1*

: 112

17

1 :p3 f

942

1

55

292

903

1 144

1

114

144

38

HBSU~4"-Rdlor-_--_- ------------ -- -------- -

0

4 :7 7 4 2 1

' .

58 2

,

Of ,

147

13

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

M . .h.tt

..

V 338 23 .447 1 .612 943 177 403

:

---- - 702 54

.

. . . . . . . .

Portsmouth

---------

83 03 2

5 891

6 206

'4 :969

3,894 1,453 408 1,209 '501 5,371

Provide ------------------------- -

---- -

8 624 7 580

535 .108 19 3 3 224

Ifild-Atlamth W - --------------------- - 1

11

fol

:

. 553

276

87 2

Nine

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

44 12 36 140 4 .250 746

'' ' "

6

1

-Irk

Philld.1

.

jWW- --------------------------

9 :

4 446

4

41 510 2 7 11 ,11, 5 0 2 :1.1 . 1

1

L 17

,162

113 - -

PitUb.rlh

5,676

26 g54

37,539

I' 7 70

:8

2

IS

889 157 2,062 60 85 1

: :

Richmond. ----------

:. ... . 3, :IOS 2 S:4 9 7 1 :434 3

:1

.. . . .. . ........ .. IS I .I.I

Son wil .i .

the at t'"i . ;;-------------------------------- . -

9,947 7 .818

2

1 .863

327

f

so

L 182 1 .600

268

L 57 3

323

3

213

Atlanta . . . ... ....... . .. . .. . ... .....

ill1

42,537 3 1

U

2 771 '38 124 3 .2" 902 2 129 C u. 12 4:13

Of

20 373

' : ..

236

03

1

63

! 3

:

6

29

.

3

G r... . th o . . .. . . . ... . .. . . . '

. ---------

,

41 .1172 ~1"2 :02 N0 30091

3

41001

31

f 61

:385

1 111

11

2 121

, 28

I k 1,477 17 .683 513 230 120

, 57, G

24

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

2 4

,.

N .lnilil

60:111 41 :113 5

'0

3

1

250 3 83

9

645

Central Region : ---------------- * ------------ 1 '

32 133

25 '1, 1

:22.

59 1

120

1

:353 1 :993 40

Cincinnati . . . ---- ---------- __ . . . . . . . . . . . . 29 .017 20

1 2 7 ' 7'' 189

93 7

'

------------ - 469 1 093

D

1. 49,320 38 :422 4 :2 75 1 . ~1 468

:

2 930 1 :43

9

.

7 7

Indianapolis . ---------

7

33 :326'

1 :04 ]610

25

4 :

3" 1 ''

320

3 .

021

1

389

51 2

Lou

-------- -

b k

-----------

22,81D 17 323

6

2 3 7

2,261

:307

644

17 3

99

2'.98

1 279

:

107

1 113

44

ers 3 1 u,rg. ...

hild'a It Reg on :

9,655 7 182 1,155 201 56

,

400

,

66

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

Ab.etul- --- -------------- - ....... .. ... 4,467 3 .264 202 182 it 365 355C ha

0 ----------- - 80:051 ' p :

3

V

1,141 407 170

1

2,477 1 4486 . . . . . . ------- -

Fa ------------

22 14 1

5

11 242

1 a 6

966 115 1 :794 2,64

0

,

37

O n ------

29 J31 12NG7 2,269NI

24 5

760

73

301

341

2 332

42 5

113

5

ma . .. . . . . . . . . . 152

St Louis 11 ' '

10 281 1 171 753 57

,

433

1

1 :728 2 . ---- -------- . . . . . . . . . . .

IL

P '

4326 :31 34-

9

:

30 220

: I 2

94

IS a

:

4

3 03

2 .

121

1

Splin: Ilifi.

Is 1:

7.2 20 364

13 662

1,842 818 132

'

074

1

.,

.

. .2 3

So.

th...t Rag on :

949 864

1

29

:

224 312 3 8

"I'll 11 !' !::: :: - 1 411 4 396 284 114 41 326 326

Austin_ __. : : ::: :: : :: :: : :

C -Y an .

1

53 ,:

N 37 760

:

3,04 2 1 .251 419 7,290 2,385

3

11, .. .... . ... .. . .. . . --------- . . . . . . 977

Do I . . . .. ... ........ ......... ... .. . ------ -

D

3,558

48

"1

2 5

89

11 1 1

0 5

2,3300

1 .197

20 47537

IS

5 6617

353

2 435

4

enver .-------- . . . .. .. . .. -------- 911

111111

15 :108

11 :

793 117

..

93

,

1,450

,7

7

..0,,,, ........ .. . _ 14 .72 6

26 171 11'616

90

3 32

5 100 1 -010 ------------- 7 02 20

Oklahoma City Is 10

4

20,32 I 4

3 7

983 389 137 2 11

111

11

- 36

Wichjtl~ ------

21

608

1

: 7

1 6 843

108 520 110

:5 . 1

9 1 7 West

. . . Ridge : '

,

901 472 47 11629 11693 2

3

Anchorage. -------------------- 3 .922 3 .344 177 18 6 146Bo

as --------------------------

: : 1 273 1 117 363 114 2 7 417

129

380

2

---------- -

8 : 29

4

:

509 171

20

850 322

5

10

Los A el .

:

5 127, 4 112 177

'1 1

ng . . . . . . . . . -. . . . . .

347 294 20

Ph

:162

125

6 621

,,: 24 B,

3,079 56. 41

N'

3 3

P. tia'd- ---------------- ------ ----- - "

1 ,

4 111

13,51 4

45' ' 42'

55 lj

- 13

------

Reno-

:9,

7 5

:

6 "1

961 372 63 711

991

3 5

Sell . . .

'

12 003 1 1

1 ,

411

'88

11 40 442 393 - ---------- - . . . .

So. Farm .. . . ... . .. . ... ... .. __ ------- ---

,

74,672 1 :0

' N

787

1

189

2

1 64

34

395

3

8 5

3 610

815

93

Sostill.......... ... .. . ... .. . .... : 13

. ... .. . .. - 28,018 21,0 O0 1 :782

.

7 34 1 17

2

:204

I~ 5

700

804

48 1

1

1

f

I

Tal~le 1O.-Additional tax and Penalties recommended after audit examination by class of tax, and by Internal Revenue regiorl districts, and other areas

Region, service !timtin ,

and di.fin' Total

Individua l

and

fiduciary

Corpora.

it.. Estate Gift E .'ise

Employ .

.. .t

E-p t

g .n i

'.U.n

Total --------------_- ----- -

01 .1th-Athiell5 068 432

' :

1 111 95 3

' --------- ---------- -

3 .068 .1140 620.252 90.043 85.975 79.IS4 13 314

Mid-Atlantic.

--------------- 224 US

13

' 7

193 :168

' 7 "

503. .

411 11

4

11f: .1 6a GIL :3111

TIV

15.133

.

692

Southeast----------- ----------- -

C t l

L

2 , 567 : L. 1

'

7

,

,: .

.

.

7 .046

I 7 3101 1

6 :131

623

en 426

ra

ffild-st

633 '."

896 ------------------------- ------ -- ----- - : 16:12 11 M2 4 1 021 5 061 26.2 . 6 .470 179

Scuth.W.. --------------- -

2 1

411 1

It 17 4 ,

11 3

Is 7 : 7

at

,:

, 635

:

------- 1 691 6 .656 21 .706 Me

-

--- ----- -

------

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

9 :32 4

94

22 :I. aS 11 7 , : 1

.1

1 :456

199 567

44.925

5 792

DO

:'67 4

594

19. :668

9.859

International Ogeratio

-------------------------- North-Atlantic Ill.

-

.

:

40 .993 18.047 15 .811 5 .853 25 94

1.

153

------9

-

Albany - -----------------------------

A .gu,u-- .

------------ 13 12 1 224 54 ..73 2 70 7 129 116 187

-

B.tnn --------------- : ::::.. ... ...

, :221

167 .925

:

1 390

28 961

1 89 1

108 :456

.

1,52 2

21 754

1 1

725

IDS 300

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

---------

N 2

a

rwk,yn ------- --------------

. . . .. . ff 661 1 11

,

43 1 11 .12

.

1 .765 902

738

654

3,049

u .1 . . . . .. . . . . 1 246

. . . . . . ____ ----

8 7 : 864 :

948 61,559 8 .367 473 869

.

648

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

------ -

If. told :: :-: ' ' 67 3 '0'

1

5 a

76 31 26

---- -

------- -

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

Manhattan

12 0: 6 54 B 8 56 82 :

8

27 .231 546 92 932

--- -

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

Port"outh __--------------_-

273,683 810 .156 159,431 16,962 4,046 3,854 778 456 -

Providence------------ -------- . . . .

2,1:861

252

21 :856

729

3,549

17 816

369

7 595 4' 1

31

Mid-Atlantic Reg on :

. . 27 11 2

,

t!"r

e

U

125 11 1 41 71 11 164 10 .226 228

' " '

2 2 1 N .

:8

69 6

8

314 .318

2,:4,I

35 507

1 4 :, ,4

266 779

12,194

8 874

665

1 639

3 :87 5

4"

, I: 7 D

Pl,ad.

89, 952 11:323 62 :606

.

13,456

,

1,708 401

1 .05 0

357

24

Richmond ---- ----------------_- -

Wilmin ton

66 : 03

'

17 015 41 11 5 41

0

221

. . I I1 s ---------- -

Son i . --------------------- --------- _

theast eid2, IS

2

3

:695

16 :

794

1 :

23 7 159 112 95 9

Atlanta

Birmingham

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

-----------_---- ___ ... __

76 .073 20,174 42,918 7 .297 398 4 03 3 871 393

:_:

Columbia

45 .719 21 821 17 164 4 552 U3

,

'

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

Greenst, ro

28

:889

6 LOS

15~

260

~

3 144 30 1 :851 494

. ...... 95 1

96

17 237 73 566 3,262 382 514 734 ----- -

Iruiscm,

20 9

:

D6 1 S95

:

6 535 2,722 453 674 62 6

1

76

6 79

7

3 5 83

6

3 438 31 317 3 440 3

.

----------------------- - 144 1 .725 33

Central R time :

23 .2 55 37 : 3 41

:

6

73 96

:

8 168 2 03D 668 1,353 . . . . . ------

Cincinnati --------- ----------------- 57,979 I 2 S

1

Cleveland_ -------------- ------- .. . .. .

4 3 357 648 1 057 59

Detroit

150,73G

' L

:947

I

I D:1 But

:

7 221 ,324 7 .121

,

.------------- ------------ ------ - 1 .1172 U

Indianapodis ._------------

275,7294 1

92 6

35 .955 203 .156 19 .479

: ,

56

4

6'

_. . . . . . . . 1,545 7 6

Lonisvill--------------------------------- -

Pa ker b r

.

45 171

26 .39 3

13 12

7

50 .53

7 5

21 11

150 560

376

3

91

1

24

2 :G282

56

943

r s u g- -------- ------------ - 940

Mid-1, Begin . :

1 :

. 675

6

:63 8

:5

5

50 2,000 183 93 213 .... .. . . . .

Alberni-tm--------------------- -------- 5,586

2

COhasil .go Monnes ------ -------- -

.457 1,993 1,053 7 27 14 9

316 :212 49,815 269 551 26,363 2.570 2,174 661

1

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

s o

__ . . . . . .

F. go---------------

454 1142 .1 538

:234

30:490 5 .07 4

5

80

316 7

------ ----- 1 : 20 9

-

Mil-ulkse -----------------_--- -

0 0-

,

92 4

0

7"

9

7 7

17 4

' '

I

6 5

1,563

257

451

4 1

1 191

22 4

5 729

.... .

. .

. -------- 1

St Louis

:

Q

It

33

19

7 :3

If

3

.

: 1 8

"N

3 7

,

11,

,

. .. . .....

. _---- -

St . Paul --------

225 96

94 :9928

14 :21 200 3

:

7 : S 273

1

95

..

------------------- __ ------ -

Springfield - --------- . 40 935

,

1,

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

41 70 052 7,458 889 387 3,339 127

. ---

So thwest Reiton :

, 6 '034 15,241 17,252 306 397 1 .70 5

Alb.q. .,q . ... . . . . . . . . . . . . . . . . ......

A t

_ 11

137

?

us

21 .831 899 122 57 12 1 in ----- --------- ------ ------- _

: : :::

Cheyenne 9 6,17

4 387

:25

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

3 0 28 .959 16,444 17,183 2,633 1,794 394

Gall as ---------------------------- ----

D e

, 1

DO 771

2,554

33.6110

436

32,852

454

16 732

944

54

'

r-------_-------------- 3 8196 2 3921 ------- 445

-

env ------ ----- -

Little lock

:

71 564 10,117 12 .568

24

:615 21 97 :1 4

,

393

.

olrle ------- -------- ---------- 707

No. 'eam;

19 49

.44

42 S86 J32' 7 :0" 2 "0

271 1,178 631

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

_'__._ -------- ------------- --- ,

31 8

7 Z.

i3 447

11 03a

26 530

1 : 955

93

458

889 1, 226

. . . . .

-------

"l Region'

:

23 532

7 :

197

,

8,389

6 .2

4,924

901 3 3

13

671

164

465

2,111

3

1 7

A.6 ..... . .. ... 4 4'1 2 5 860 225

1

336

211

Suite-------------------

1 1 :

973 128 9,075 473 29 44 224

.. .. . .. . . .

fib nil;

ol

6 3 231 1 111 31 64 96

I

so

---------- -

Los

Angst --

I

4 : 67

5 34

: 1

: 7 714

680

'4'

-

24'

---------- -

ph ----------------- . . . . . . . . . . . . . . . .

.In --

465 .70D

22 247

110,948 192.169 154,9157 1 .947 21752 1, 837

. . . . . ...

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

Po tlaml

.

30 511

8 353

:

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

7 :464 4,747 192 249 1 .24 2 . .. . . . . .. ..

-

Reno--------

.

32 166

9 63D

9 775

1 5

4

137

346

209

7

29

.

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

' '' L '

.

23 491

,

7 433

17,056

1

1 :526 386 3,206 218

S :. FIt~lleco:::: --------------

.

113 .6,98

.

15

.398

1 : 7

232 1 a

1 .76 1

19 945

1

2 Og8D

26 6

SSO

2 .211 . . .

srattl ------------------------- 69,665 15,194 40.216

,

10 .327 617

I3 1

2

2 .085

945

531

4 5

1

'

1 1

138,

139
In courts of appeals in Supreme Court

Amount in dispute Amount approved Amount I. dispute mount ap oved

Number (thousand dollar,) (thmissund delta, .) umber thousand dollar,) g

(thiluuml ellivis)

status .1 .. .

Deficien. over- Deficier- ver. of "in ici .n. ver- rificlim. er. y and payment cy and ayment y and ayment ..it yment penalty penalty penalty enalt y

(1) (2) (3) 4) 5) 6) 7) ) ) 0)

Pending July 1, 1272, total--------------- -411

-

23,65 6 75 --------- --------- -------- ... ..... . . . . . . . . .. .. ... . All,P::I:d byby tl~mjury1.1,r -------- 4 ,585 7 -------- -------- --- - A - __ 1

5 6 0 -------- - -----

- - -

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

:

Appealed by both ......

... .. . . . . .

41 4 :4 17 48 ------- --------

- -

----------

----- -

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

Appealed, total -------- ------------ . . . . . . . . 256 25,103 u . . . . . . . . . . . . . . --- --------- ------ -- -------

By Commissioner_ .. . ....... . . . 36 11,131 -1 ------- - ----- - -- -- - -

BY tax . .1 --------------------- -

g

21 5 3,913 21 ------ _ - -------

- -

------

--------

-

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

By bei -------------_- ..... . . . . . . .

.

5 59 . . . . . . . . . . .. . . . . . .

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

-------

----------

. . . . . . .

----------

.. . . .. ..

----------

. . . . . ..

------ -

Disposed of tortal_------ ----------------- 257 4 2=38 0 .911 3 .. ... ... . . . . .. ... .

Favorable W Commission . . . . .... --- 160 9 .177 7 ,177 0 Favorable to taxpayer ---- ---- ---------- 41 2,312 3

7 3

---

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

Modified-------------------------- - . .

S filed ----------------------_-

.. ... 1_ 7 _ :408 ,033 ....... . . . .

----

----------

Dismissed ------------------------------

39

1 .34i 6 9i

Pending June 30,1973, total---------------

410

34 .521 51 . . . . .

Appealed by Commission . . . . .......

Go

--- - .

Appealed by taxpay- . . . . . . . . .

.

324

J1,417

---- -- .

---------

---------- Appealed by both-----------

26

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

140

Table 1I.-Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases )

A. Progress of work F.Y. 1973

Represents amounts petitioned. Revised.

Statu s

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

Received ---------------------------- -------- --------------- - -------------------- --------------

Disposed of, total ---------------------------------------------------------------------------- ----------

O

By agreement n. . . . . . . . . ---------------------- ---------------------------------------------- ,,agreed : (Overaddecomicits, claims excise employment, and offer in compromise rejection,) ------------ 8

taxpayer default an stxtu~ry oti~e ... ...

y

petition W the Tax Court-traflulm(ed to ilWiZlifid itaf~;-------------------------- ------------------- - -------------- -----------------------

Pending June 3D ----------------- ----------- ___ ----------------------------------------- ---

Method

B . Results obtained in dispositions

Disposed of, total ---------------------------------------------- --------------------------------------

By agreement------------------ _ ---------------------------------------------------------------

U ..S, .,d : (Ohitumencomentri, clifirmt, ,ci,,, rion,litiment. ,I offer in compromise rejections) . --------- By = r delso an 'is ~utory notice -------------------------------------- ---------------------y

to the Tiles U. t-tramill-d to docketed stat ., -------------------

status

Method

A . Progress; of work

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

Received

I ------

Pat I iuqu'h 1W-.o ------------------------ -----------------------------------------------

District Directors' statutory notices -------------------- ----------- ------------- -------_------ Appellate Di,ii- .'a 11-IMly notices' ---------------------------- -------- ---------------------

Disposed of, total-------------------------- ----------- ------ _ ---------------------- ---------_--_--

By stipulated agreement .. . . . . . . . . . . . . . . ------------- ------------------ ---------------------- B'Y, T disgursol by the lax Court or taxpayer defsull_ ---_----------- _ . ------------------ ---

. ----- -- -- fine the Tax Court an the merits.. . .. . . . . . . . .. . . . . . . . . . . . . ----------- ------ ---

Plhdih:dJur . 30 --------- ------------- ----------------------- -------------------------------------

Disposed of, total --------------------------------------- -------- -------------- ---

88' stipulated islies-I. . ~ ---------_------------- --_---_------------- ---------------- _

rictimiscal by the less Court or taxpayer default-_--------------------------- ---------------------

ad list.,. the Tax Court on the mians I ... .. . ........ --------------------------------------------

Number of

(1)

Number of Itures

Number of

casse

23,411

23 .927

24,66 7

is 974 2 :263

2 .540

22,67 1

Number of

24,667

18,974

2,263

890

2,540

'11 467

9 :622

7 .154 2 .468

9 .026

6,721

1 .012

1 .293

12,063

9,026

6,721

1,012

1,293

Amount stated in rw.... .par,

report (thousand dollars)

Deficiency

. .it penalt y

(2)

827,939 21: 00,207

1,343.04 6

I,=3726 :604 .352

338 226 .75 2

3,540,100

Appellate determination (thousiond dollars)

Deficiency .it Penalty

(2 )

706,50 5

431 .136

39 194

23 169

213 .006

Table 12.-Appellate Division relcel~t and disposition of Income, estate and gift tax cases petitioned to the Tax Court (docketed cases)

Amount stated in statutory notice (thousand dollar . )

Deficiency in tax and penalty

(2)

11,585,376 - 1,005 21 5

792,581

212,634

459,652

353,957

16,

91,

2 .130,939

Deficiency in tax, and penalty

(2)

22D .435

115,134

8 .821

96,530

overassens-

..o f

(3)

(3)

Over-

..of

I Difference from table 12, transferred to docketed status is caused by excluding district directont'statuxury notices considered by Appellate in 90-d'y status.

B . Results obtained in dispositions

160,41M 71,425

49,672

47,227 2,272

27 14 6

182,17 6

73,496

76,072

2,404

9

12

F .Y . IW3

Oversecess . men t

(3 )

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

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

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

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

----------

----

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

-----------

Appellate determinati n (thousan it d

J..)

Overandene- ment

(3)

. . .

---

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

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

1

Table 13.-Offers in compromise disposals

Type of tax or penalty

Offersnaccepted , total__ ------ ---_------------ -------------- -------------

come, estate, and gift taxes- . ------ __ ------ ------ . . . . . . . . . . . . . . . . . _ . . .. ..

Employment and withholding taxes ------ ------ - Other excise laves,_ -----------------------------------

Delinquency penalti. on ---------------- -- -------------------------------- --------- all --------------- ------------------------ S ra,lfic peralties .,__-----------------_---------- --------------- --------_---

Offer,._ ectall .1 .,ithd,'*h, total- . ~ ------------------ ----- ... . . . . . . . . . . . . . . . . . . .

1 and gift taxes -------------------- limplElent and withholding taxes- . ------------------------ _ ---------- Other a ---------------------------------------- DSpecific . I i n q tp-.'~`a D" W*~WWI U ----------------------- --------- .. . . . . . . .. . . . . . __ penalties___ ---------------------- ------------------------ ------------

Note ; Appraised values of specific liabilities are not included in the total liabilities 1., 1972 only. Revised .

Table 14-Office of Chief Counsel-Processing of income, estate, and gift tax cases in the'rax Court

Status

Pending July 1, 1972 -------------------------------------- .. ... .. . . . . . . . . . . . . . . .

Filed or -p ... it ---------------------------------------------- _ -------------------

Disposed

Pending June " -'3-0-. '1-9-7-3 ---------------------------------------------------------------------- ---- --------- __ . . . . .. . .. . .. . .. ..

Revised.

Table IS.-Office of Chief Counsel~-Receipt and disposal of Tax Cou rt cases in courts of appeals and in Supreme Court

Revised.

1972

1 .309 340 353

28 4919 7

2 .722 1,182 955

108 57 2

5

Number of cal

.

(1)

Number

12,622

9 14

8:7' 96

13,450

1973

879 2

3'024 22 27 5

2,33'2 1 .021

90696 4172

Tax

1972

18 131

10 :798 5 576

578 1 .179 (1)

82,408 57,337

:3 17 2'73 1,465

(* )

Amount in dispute (thousand delta.)

1,439 .723

'13 931 36,

:

1,869,28 606

Amount Minuend do[] . .)

Liabilities

Deficiency

197 3

47 968

40 :322 6 .53 8

232

776

--------- 68 042

47 :072

IN" 3 74

990

---------

Penalty

(3 )

'139 .190

52,713

26,773

165,130

1972

5 577 3~343 1 .752

15a 239

86

12 910 8 :943 3 .413 6

56 190

6

On

(4)

197 3

4,693 2,506 1 .93 7

85 147

1 9

11 .257 7,305 3,405

372 172

3

Overpayment

139,812

137,130

47,674

279,262

141
142

Table 16.-Recelpt and disposal of refund suits filed by

taxpayers In Federal court s

states

Pendin

I

July I :

C - - ---------------------- number- .

Amount in dutrutri-thouszond dollars .-

RM,iv .ddu,i I year :

Uz, C st - ------- -------------- number . .

Amount !p dispute thousand dollars- .

bound durri year:

Cases .

Amoun in dispute i -------------------- number-- ---thousand doilans-_

Miluri it or,

Ani thousand "I ' ear - delta.--

""m

.1 mount disposed of.- -----

Pending

C., ------- as"'! 30 : . . . . . . . . . . . . . on be,.-

AmOu;i in dispute--- thousand dollars--

Tota l

(1 )

3,067

529,509

931

IG7 .7G3

1 :254

106 667

50,694

47 .53

2 74

590 :5454

Refund Suits (other

than alcohol' to""' and f is ..)I

Cc u rtof claim,

(2)

,471

224,585

115

93,552

,,"Oo.7 .

15,460

57,9 1

,4"

291 437

District

courts

(3 )

,2,596

3D4,924

816

74,151

1,076

79,967

35,234

44.06

2 336

2":103

I The number of cam; disposed of it . .. not agree with the number of casunt In

which decisions were randsad by the. court! during the ryear, due to sofil~

ment by at!""'!"' dill soull1g.nd time required for rehi . recomputation of

Is ., .1,. In the I

.Ort of G~sffmi o

umber of decisions was 44 of which 30 am

for

I

he Government, 10 against the Government, and 4 partly for and partly arm.1,

the Government. In the district courts 322 decisions were tendered of whic 178

were for the Government, 96 against the Government, and 48 partly tot and partly

.gain. t

th

, a Government .

Revised .

Table 11L-Office of Chief Counsel-Receipt and disposal

I collection, I injunction, summons, disclosure cases

nd erroneous refund suit s

Statu s

pending

greal",_1! - --------- ----------- 1, -----------------------

Gap . . it of--

Pending June

'

14

2 :9339

1

: 692

2 390

W-This table includes .,,a handled at mill. .. I and I .1i .. I levels which

are under Consideration tar suit or are in cut t i

o

Federal and State courts. It does

:of include cases alating to alcohol, tobacco, and firearms taxes . a, to insolvenc

y

n

in table it debtor proceedings (table 20. 19), nor to appeal and other cespes which are included

Number of cases

Table 17.-Office of Chief Courtsel-Decisions of courts

of appeals and Supreme Court in civil tax cases

P'r "

Court Total GForthe .-ir.

..nt

IliAgainst

. Gov.

., . .art

for an'd

Partly

agains t

In . Go,.

(1) (2) (3)

emmen t

(4)

Tot.] . . . . . . . . . . . . . . . . . . 297 208 62 1 7

By courts .1 appeals, total Z78 200 61 1 7

Originally tried in -

Tax Court----------_ 132 104 19 9

District courts ---------

8

By Supreme Court, telel --------

-------- -

Originally t led in1~ r7

T. Court ------

1

District

Court of Claims.-- ~ __

Table 19-011fice of Chief Counsel-Recelpt and disposal

of insolvency and debtor proceedings

Status

ending July 1 (1972)~ ---- -

Received _ .

----------- ~

TO 'a ,

(1 )

3,097

3 .559

3 :4 1

74 1

Recoullmics .

candings thin pro-i

(2)

:904

84 1

1 :71

0371

1

Bankrupt' y

and in.

ceivership

proceed.

into 2

(3)

1 .669

154

1,,171

1

hl

noun,

insolvency

proceed .

Ing, I

(4)

524

564

114 3

95

I Proceedings instituted under the fO11Ow1Sn)22s1PdCfiQA OX chiijitrits Of the Bankruptcy Act: Sec. 77 (railroad reci

ba am

n ch,. (coTlrale reorganize .

tori XI (arrangements as to unsecured Ind

a

Worries). I ( I property

arringements),and XIII (wiciaearri

p le"

),

.hich involve tax claims and other n d

rights an interests of the United States , .

Bankruptcy liquidation proceedinforand Federal or State receivership proceed .

mn which involve tax claim. Of the United Star..

N, t

p

-ding, Writing to corporate dissolutions, inso went bank,, assignment,

he bench I

Of

creditors, or administration Of wartirtrul O~ it

exand,ri which I

. W

tax far., of the United States

Note.-Imiludes, cases handled at national and regional lev ;ls .

Table 20-01fice of Chief Counsel-Receipt and disposal

of miscellaneous court cases, lien cases not in court,

noncourt general litigation cases, and appeal cases

III... 1. Lien Noncourt

Total lerea., I ... a, I Ran... I I Appea l

Status ccour ...t not i 'co n

It

litigatio cases n cases

(1) (2) (3) (4) (5)

Pending July I . ... .. .. 2 .189 497

113 1 12

2

Received--------- _ .- 8 .408 833 2,419 4 :9 0 21346

"'

osed of. . . . . . . . . .

PmOir, June 30 --- _

8,029

2,568

727

603

2,398

150

4,776

1,493

128

3Z2

I Includes suits for foreclosure by mort

suits to quiet title to

which the United Ddr other secured creditors, and

an . .

pro tax

I

Primar!ly applications for discharge of pr up . .. I.

Primarily memorandums 0, ,:,n.e

III,

to', h _not , Ildl ~i.loz 1,"Imirt.111,1, From ,,inner counsel 1.

Witt di- ich to glui,

I.

I of " ce

In

cluill-smain Fedinal .no State appellate courts relating tio ininsolsZzy and

debtor

p

roceedings, lien cases in court, and collection, summons, and injunction

cases.

Note.-Includes cases handled at national and regional levels .

Table 22-Costs incurred by the Internal Revenue Service

(in thousands of dollars]

Table U .-Office of Chief Counsel-Caseload report

Activity

Pending

J-1~ 1 Is ,

2

(1)

Receipts

(2)

Disposal,

(3) .

Pn d

I no 3V

1973

(4 )

Total------------ ___ '28 .051 31 .900 30 .373 29,478

Administration . . . .... .. . .. . . . . 128 5 375 198

General Litigation --------- 7,429 14 .906 14 .203 81132

National Office .. . . .. . . . . . . .

Field -------------------

621

6 .908

67 0

14,236

$5 6

13 .647

735

7,39 7

Criminal To ---------------- - 2 .762 21385 1,550 3,597

National Offi If .... . . ... .. . . . .

old ---------------- . . . . 2 .609 1 53

1 - 1 2

2 .397

4 6

1 .504

95

3 .502

Intmireta' 1, e

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

470 92D 941 549

Legislation and Regulation.. . . . . . 440 171 211 111

Refund Litigation . . ........ . .. . 3.067 931 1 .254 2 .7"

Stabilization . . . _ ------------- 722 2 .159 2 .981 ....... ...

National Office . . --------- -

Field- ~ . . . . . .. ... .... . . .

544 1 .154

___! .005

1,69 8

1,183

----

Tax CO.,[ Lifigriticin 13.033 9 .&SO 9,053 13 .860

National Office- .- ------ -

Trial Branch N. 0 .. ..... . . .

Field -----------------_--

41 1

253

'12.36U

25 6

8 1

9,543

21875

8,711

112419

13 .201

Statutory Notice,; not included.

48 Criminal T-rums ,called by the National Offinteduced I . I by 60 casestrams .

tarred

to

a Fi eld Office, leaving a mile ,a tiffire for net rectipts .

, Revised

.

Internal revenue office . district, or region Total P.I.-I Travel Ecipiprormt Other '

to top I,.,,Dn

(1) (2) (3) (4) (5)

A . National Office and regional totals (including district directors' offices and service

centers )

Total Internal Revenue Service -----_-------------- __ ----------- 1,162,010 9111,11H 3~.031 FI Sa~ jljf ~ %

National Offic, ----------------------------------------------- - ------------- 158.105

4 ,~

'

,

8,847

.

73 .151

N th-All ..fic ------ . . . . . . . . . .. ..... .. . ------- --------------------

M d All ti

190.543

1

72 :814 4 M: 3

' `,

64

1 1

i - ian , ----------------------------- __ .. . . . . . . . . .

S th t -

12 5,900

f

6,109

M

3,453 1 : .66 5 23: 2

ouan eas ------------------_-- ------ --------------- -

C 1 -------------- -- -------- - --------------------------- ---

1

9.521

110,916

663

10 1 75 1

4 14

3 :717'

1 .291

I3

0

4 41 6

id .

M I ---- --- - --------- ----- ----

14

"'.'at

4 261 1 .224 5,77 5 South. - - -

Winit .,- .... . .. .

JII~

165.322

94,1

148,257-

3 :97 8

6.34

99 3

1,097

5 .87 3

9 62 0

Regional Counsel-. . .. ------ ---------------- . . . . . . . . . . . . . . . . . ...... .... 15.721

15

.076 221 ...... .. . . . .

,

41 4

R gional Inspection . . ------------------------

-

a

15,294

6

3 13

1, 226 . . 35 5

Office of International Operations . -------- __. . . . . . . . . . ... .

National Computer Center . .. . . . . . . .. ....... . . ___ . . . . . . . . -----------

7 .128

6 57 5

: 0

6 93

4 .130

691

51

9

IS

33 6

2 379

IRS Data Carter ------- ---------------------------------------------------

:

17 Z30 3 611 68 26 .

,

3.299

B . Regional commissioner's offices (excluding district directors' offices and

can

I

N .rth .4tl are .n ,

uz ---------------------------------------------------------------- 10 13 4 9,789 173 121 4

' '

Mid-Atlartic-. .. ------------- - ------------- . . . . . . . . . . . . . . . .

:2

3

0

'

7 G71

1

5,

777

Souffixect_ .. . . . . . . . . . . . . . . . . . . . . . . . . .. .. __. . . . . . . . _ 7, ~

7,

: 1 1

6 111 132

50

3

Central ----------------------------------------------- _ : : : : : : : . . . . .. . . . . . . . 7,264

1 81

3 3

Midwest --------------------------------------------------------- 9, a 73 7 28 321 21 0

1 .

01 6

Scidmwe.t_ . ... . . . . . . . . . . . . . . . . . . . . . . . .. . ... ... .. . . . . . .

Western ---------------_--- . --- - . . . . . . . . .. . ..

1 :4 4

312

17 4

10 13 ' :2

11

345 1621 1069 ,2

C Regional costs undistributed

N;rth-Atlamli,-------------------------------------------

- ------ - -

2 .540 1,171 1 .184 20 164

Mid-Atla,tic ---------------------------------------- - - - 2,248 1,004

192

1,

. . . . . . . . . .

12

I -

u Ithelist. . . ----- --------- _ . . .. . .. ..... .. . .. . . . . . . . . . . . . . . . . __ . . . . 2 .378 1,029 11266 ------ . . . .:: :

.

3

can 1.1 ------------ ----------------------------------- -

slidwest . --- ------- -----------------------------------

2 .074

1 .931

86 2

1,009 ' .'1 off'

750

4

uthwerst . . . . . . . . . . . .. . . . . . ..... .

1 .411 351

111

2

8

7 2

Western. --------------------------- ---------------- . . . 2 .404 717 1 .596 . . . . . . . . . . . . . 92

143

_-L
Table 22-Costs Incurred by the Internal Revenue Service-Contirsued

In the. . . no . If delta .]

Internal revenue office, district, or region Tota l

(1)

ersonne

l

cerimp

.m .t,on

(2)

ravel

(3)

uipmen t

(4)

he r

D . District dincibir.'affices and sperrice centers :

North Atlantic :

-

Albany -------------------------------------------------- --------------- -

Augusta 5 .486 .113 57 6 SO .---------------------------------- ----------------------------- -

Boston -- ---------- --------------------------------------------- _ ------

3 009

20 :174

75 5

18 :958 25

448

2

115

7

653 Brookly------------------------------------------------------------------ 21,280 20,107 24 57 1 2

Nu

8euft~j ---------- ------------------------ ---------------------

.14ritim t

13,520 2,682 99 3 6 6 -- -------- -------------- --------------------------------- -

t

1551 ,388 7 9 7 ',i ------------------ ----------------------------- __ ---------- _

Mimlinitt. ------------------------------------------------ -------------- 5 1. 3 :045'89

35

490

1

143

8

Portsmouth 1 363 -- ---------------------------------------- - ----------------- -

P i

,381 ,202 11 6

,

1 ,. d,nc------------------------------------------------------------- 3,637 .373 2 4 4 8

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

336

174

D

------

_

714 9

5 mfinver Service Center. . . . . . . . .

. . . . . A . . . . . . . . . . . . . . . . . . . . . . . --------- 30 .399 H 4V SO

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

10i 972 .%8 .okh . .

.

I S I,. Carl . ,

Mid Wrific:

0,129 4:451 51 99 1128

B:Ri. I --------------------- ----------------------------------- I ------- 15.989

"

a

'

22 D

I

I,

P,w .,k -------------------------------------------- ---------- -

ll .driphi- P

4,112 2: $13 10 1 1 --------------------------- --------------------------------- -

ittuntrigh------------------------------------------- ----------- --------

2 .569

11 .962

20J :13

3904 252.

5

37

2

294 Richromid_ ----- - ------_-----------------_--- . . . . . . . . . . . . . 10,975 10 262 77 1 85

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

2.920 2:685 6 6 3

It, ---------------------------- -

Yi

14 78 3 4 9 Mid- Ilan misfire it, d ' mmil ------------- -----------

A '11 d h ' ------------- I -------------- ------------ I ......

Southeast

:

3

26,577

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

24,515

3

73

- --------- -

140

---------- -

I' m

Allut------------------------ --------------------------------- -------- 12 .548 11,294 79 97 Binninater,------------------------- ---- -

Colimbi - ' '"

5 5

7

4 3 5 -------------_--------- ... ... .

G .....bor--------------------------------- -----------_--------

:713

10.719

:

4 33 0

9,738

0

459

0

94 42.8

:::::::::

------------- I . . . . . . . . 4.259 ,875 83 2 4 9

Nashville 20 .606 32 62 32 -

S uth...I ----------------------------

8,529

34

5

7 7

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

7

---------- -8--

6

34 South east Rskni-Cinrishinx! Training ---------- 120 --- ------------

121

----- --- -

---------- - - Atlanta - - - -- -

S C

..far .---------_------_---------- -1 ------------------- 20,717 18,757

., j - - - i -

.66 6 M..Phi, Satiric, Center ------_----------------- ------------ _ ---------- - Central:

21,154 7,985 s 67 ,80 3

Cincinnati ------ - ---- ------------------- _ ---------------------------- -

Cl l

2,282 1,591 91 3 7 eve and -----------_--------- ----------------------_----- ------ -

Dart

. . .

1 2

2131 ~ ' 5

22 0 17

2 479

6

675

9

149

6

3

712 11 d I. p1 2,333

7 909

464

171 041

5

279

9

198

5

30 1 P,I

.

4,609 ,14

8

215 6 Central Regional Training 434 406 2 2 T4 Central Rillic-Ce .h.hied Training-------------------- _ . . . . . ... . ... ... . . 132 ----------- _ 131 ----------

Cents, ----- ------------------------------- ----_----- - I M,dvC.infm"ti Service 22,574 0,911

8B

,598

Aberdeen ------------------------------------------------------ _ -------- 2,185 93

1 '

43 3 Chi g ::----------------------------------------------------------

1

-

Car

9 133 28 :137 0 3 3

.

- ---------------------------------------------------------- N7

9

2,085

i .593

1 .856 81

117

2

29

3

84

10 5 4

,

9,386 33 31 04 ort.h ._---------- j

4

1 31

8

00 0 S

------- _ 1 1,472

3 :

313 58 6 5

. . . ........

.... . . . . .

B " . s

0

7 :9 1 '9"

3

7 :299

4

3660 '

3

258 .Id . e , ---------- -------- I -

-------- - Midwest R -------------i . .,I,n, City Service Carter_ ------ -

h.ext:

24 .382 2,293 18 39 ,841

Atli . . *111,

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

2,996 .642 31 7 97 Austin . . . . .

- 17,620 6,199 D9 a 23 Claysnh ----------------------- 1 .563 ,402 06 9 Dallas -------------------------- ------ ----------------- : --------------- 16,781 15,418 41 237 94 De 6

934

1 7

a

4 5 8 Little R

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

4 :4 1 0

9,618

D0 5

1 11 5

2

259

6

92 8

31 3

.C _

------------------------------------------- 7 .791

: Wichit 208 84 0 9

';if it;_ i~ ; __ _ _ _ _ "

536 969 0 6 1 South. -g E.nt~if6jj jjji

I

ri 6 . . .. ----- 6 ------ - Austin Service Carl..

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

t R

3,223 0 .67 8

0

9 44 6 us I ag. T, Unit------------------- -

Western- 4

3 1

3

5

5

A. hxxag .~ ------------------------------- __ . .... ... ... .. . . . . ..

c

Sall ,320 15

1

4 Bo : : : : : : : : :

1~' a--- ----------- --- - --------- ---------------------------

:

1 "

2 4 4 .

10

3 H, 1, n . 17

2

:071

4

3

H... . .

. 3,DO9 .654 5 1 16 Los Angel Is ----------------------- ------------------------------- -

Phoenix 37 .695 4 45 ,219 64 71 7

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

P.111 111, --------------------------------------------------------------- -

!

193 6

1,.1

:

5 16

8

6,193 2649

0

1

O

372

Aa

no --- ,142

fig,

16

1

a

2

1 Salt Lake 3 195 2,987 6 3 l a Sim

- -------

25 :292 3,061 63 4 1 1 . 4 s.ttl

.__

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

"Z""' A

T infin, ------------------------_--- - ----- W

452to 19379

4

3

5

6

.

2

6 4 w ----- 217 . . . . 2 1

-

---

--------

7 Sovic . Can I------------------ ----- 25,877. . - ~

2

7

51 1 Sthnic. Unit.,----------------------------- :-------------- 21,995 19,397 79 31 ,997

Includes $20.0 million financed from reimbursements . Amounts show, do not include transfer to GSA torrent .1 pace itinointiol to $2,057,000 in 1972 ; $11,359.00D in 1973.1972 adjusted to reflect transfer If tobacco and firearms function July 1 . 1973.

144

Table 23-0bligations Incurred by Internal Revenue Service, by appropriation and activity

(in thousand-f d.r. .)

Appropriation by activity

Total obligations, appropriations and r1milb-ble -----_----------_---

Obligations against appropriation funds- . ------- ---------------------_

Seeries and expenses:

Total-------------- ------------- . . . . . . . . . . -------------------_--

E .eculi,, direction . ----------- ---------- -----------------------

Internal audit and security. --------------- I ---------------- -------------

Accou,tv, collection and taxpayer service:

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

Data processina operation ------------- __ ------ _ ----------- ----------

CoIllec *.", Inpdo : "'a enicl- ----------------_----------- St. isti, "

ti n District manual operations- .------------ --------

Compliance :

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

Audit of tax returns-- . . .. . -------------------------- -------_-----------

TI, 11, an, . 1, -------------------------

Tax -------------- . . . .

ay"'I rulings and semica .---

_: :

T Mu

Legal services ------------------- . . . . . . .. . ------------ . . . . . . . . . . .

Reimbursable obligations, total----------- I ------- ------------

1972

Total

197 3

1,054,093

1 .048 .424

31,51 6

13,370

18.146

470,322

276 .716

118 :241

810

55 1

546 .58 6

411 .214

64,153

I3,1 :914 l7l

2 .134

'659

1 .162,009

1,141,969

34 .61 7

15 .195

19,42 2

510,59 8

298,601

112 :41,8

9 88

32 1

596,754

447 .423

74,028

3t1 2,2,1

27 .421

20.040

P .,..n .1 crimprositfirm and benefit.

197 2

889,061

894,398

27,102

11 .571

15,53 1

376,09 8

207,045

160,77( 1 7,71

5498

1973

978,936

969,752

29,493

12,933

16,560

418,631

236 .026

J71 .871

4122

8'3

2

481,198

361 .932

53 .014

21 .15

2"2 :47"1

4,673

521 .52 8

391,969

.60,048

11,111 1

:411 310

25'

SAM

Other

1972

165,022

164,036

4 .41 4

1,799

2.61 5

94 .234

69 .671

23,469

1'0922

65 .388

4'11 :2

1 39

2 .1.

1

663

Ed

1973

183,173

172 .217

5 .124

2 .262

2 .862

91 .967

62,575

28 .317

1 .066

9

75,126

"13 80 :9"

2 4711 :1 0

2.111

10,956

Note.-Amounts shown do not include transfer to GSA for rant of space mourting to $2,057,000 in 1972 ; $8,359.000 in 1973.1972 adjusted to .Bad trimals, of Alcohol, tobacco and frintrins function July 1, 1973.

Table 24.-Quantfty and cost statistics for printing

Fi Fiscal yea, 197 3

Quantity (thousands) Quantity (thousands) Class If work cost cost

111, send -ith. sen d

Items or Package, d.11 I tmr; or ackages ollars) W, at,

(1) (2) (3) 4) 5) 6 )

1. Tax Packages (1972) :

Panik.g. I 111- 104 Fit 417 i1,x S,1;dJ1I11 A & B-32 Page,)-

0 1! Z''

---------- --------- ---- 6 .590 3 16 4

0 : in 7,. 4 . E

PzcckagL2.(Fcmn 1 5

.

l ~ Id I 1 . 0, &R .andInstruc.

ti

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

.931

.

.109 3

Ital-tions-52 VI.s) Package 4 (For, I , Schedules A & 8, C, D, E &

98 .358 .566 92

Form 4875 and Instructions-60 pages) --------- ------ - --------_- ------------ ------- . . . 7 .872 2 816

8 Patik -71 1 .9. 1040A (F 1. IOIOA, Form 4875 and Instruct i -20 P .

's). _

1 111

,

1 415 3

l 1

Pr 'fral . I .,

A-73 (Form 1040A and Instructions-16 pages)--- . . .. . . . . .. :

.

46 :9 .0 :

3 90 I . P. kirg, 1065 (Fish. 1065, Schedule, D and I,~..fz.cfimu-2O

Package 1120 (For. f 120, Schedule, D, Fo 1120-1N , 3468, 46, pa"Isib- 6 and- . . ----

. . . . . . . . . . . . .250 725 3 i

Instruction, I., F m 1120 and Schedule D-32 pages). . . ... ... .. . . . . . .

11 . Tax Packages (1971 ) :o

. . . . . . . . . . . . . . . . . . . 0,000 ,ODO 6

Package I (Form 1040 Intit-ticria. Schedule, A & U-28 pages). 249,700 49,940 66 .... .... .

Package 2 (Form 1040 Schedu es A A 8 D, E & R, and Instrucil.ons-4

page.) --------- --------------- --- . .. . .. . ----------------- 114 .525 2 .725 33

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

Package 3 (Far, 1040 Schedules A & B, C, D, E L R, F, SE, Form 4136 and

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

P

lost-toth-56 P.953) . --------------- ----------------- - . . .. . ..

k ID65 F 1 5 S h d l

7 .335 255 3

------- -

pracck 1: ( orm , 1 . c e u e D and InstructiOn-21IN2 .1).. . .. .. ...:g

1120 (Form 20 Schedule 0 For., 1120- W 34 8 4626 and In.

,000 110 0

----- -

lithic' . , , . ,

tors for Form 1120 and Schedule D-32 pages). . . -------------- 20,000 0DO 2 - Ill. Employ'

" Tu`' P' ' %

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

Pub 393 (F ,. 7O18 . 4IC . 101-2, 941A .dW-4, W-4E, Schedule A for W-4,

P~b. 213, and unemployment tax sche ule)--------------------------- 91,010 ,790 94 . . .. . . . . .. . ~E~ft~~M~W . . . . . . . . . .

Tax returml im ir d 11 u111II1J*1 68 .570

0 ' 2 "

76 3 1D7 2 4 ,afr uct,... P hit Us. I and

IV. Other Tax Returns, It Pamphlets.----------- 374,629 1 --- 0 208 2 2, 7: 3

_ : .. . . . .

.

:

Ad I and 807

P..!hl.ta ---------------------- I -------

'. 'mi I 'or.

3 7 131 - 900 5.451 --------- 71 0

is V I. F III Printing ----- -------------------------

S 7 Gla . : ::: :: : :

6

1

1 .094 . . . . . 571 V, , cise Tax Stamps_ ----- ------------- ---------------------------- -

NA"Printriz to support the Economic Stabilization Program --------------

2,626,982

41 .219 -------- : : :

----------

6 ,

1 :

499

. .

'U'Hi,

-

--------- 468

GRAND TOTAL ----------------------------------------------- ------------ ----------- 9 .952 ---------- . . . . . 9,703

Note that this entry covers a package tot alendar year 1973. Due to the need for p-rint-int lead time the money was expended in FY-73.

Licit, Tax Stamps, primarily l .h .1, have been transferred to the Bureau of Alcohol. Tobruxii, and Firearms .

145
i

INDEX

A

Actst

State & Local Fiscal Assistance

Act-1972/62

Federal-State Tax/62

Collection Act-1972/62

Advisory committees/18

Alcohol and tobacco tax :

Statistics on,/123

Appeals:

Appellate division,/19

Chart on,/20

Processing of,/20

Stall tics on,/20

Assessments, additional,125 81

Assistance:

Foreign tax,/50, 51

On-Site,/50, 51

Overseas,/44, 45

Taxpayers,/ 3

B

Bulletin, internal Revenue,/ 8

C

Charts

Organization,/96

Chief Counsel, Office o f

Analysis of cases flowing through,/64

Cases involving criminal prosecution,/

2 4

Disposals of cases by,/24

Civil "ligation

/

0

C.Ilacti

.n "i'g

"'. .tion legal services

an . rat Litigation Services)

Collections :

Alcohol taxes,/123

Corporation income taxes,/122

Disability and old-age insurance,/122

Employment taxes,/122

Estate and gill taxes,/123

Excise taxes,/123

Individual-income taxes,/12 2

Old-age and disability Insurance,/122

Railroad retirement,/122

Tobacco taxes,/125

Unemployment insurance,/122

Withholding taxes,/122

Commissioner :

Contests of suits,/54, 55

Commissioners of Internal Revenue,/102

Competent authority activity,/44

Computer audit programs/ 16

Conference :

Appellate,/19

Procedures./Ig

Cooperation, Federal-tax,/6 2

Conventions, Ux (See tax conventions)

146

Coordination and cooperation with bureaus and agancies,/62

Corporation Income taxes,

Additional assessments Proposed,/14

Coilections,/122

Refunds,/134

Returns

Examined,/138

Filed,/136

Statistics an Court(s) ,

Circuit courts of appeals,/142

Of Claims,/14 2

Supreme, of the United States,/142

The Tax Court of the United States,/

14 1 U .S . District,/142

Criminal prosecution ;

Analysis of cases,/24

Cases, disposals of,/24

Results of,/24

Current research progrem,/62

D

D:ta Processing activitlos,/88, 89, 90

D linquent accounts :

Disposals,/21

Other,/21

Statistics on,/t l

Delinquent returns and delinquency

Investigations/22

Determination letters :

Employee benefit plans,/9

Pension trust plans,/ g

Self-employed persona benefit plans,/

9

Statistics on,/9

Disability Insurance texas :

Collection,/122

Refunds,/134

Disciplinary aCtions,/76

Discriminant function,/1 :3

E

Economic Stabilization Activities /35

Employment benefit plans, deterWination

letters cn,/ 9

Employment taxes :

Collections,/ 1 22

Refunds of,/134

Returns :

Examined,/138

Filed,/136

Enforcement activities

Appeals,/19

Delinquent accounts,/21

Delinquent returns,/22

Examination program,/12

Mathematical verlfication,/92

Tax fraud investigations, /23

Workflow in Service and the courts,/

2 6

Estate tax :

Collections,/123

Refunds of,/134

Returns :

Examined,/138

Filed,/136

Estimated tax, declarations o f

Corporation,/122

Individual,/122

Examination program:

Classification and selection of re- turns,/1 2

Returns examined, number of,/12

Tax recommended, additional,/14

Excise taxes:

Additional assessments,/14

Collections,/ 1 2 2

Refunds of,/134

Returns filed,/136

F

Federal-State cooperatio n

Agreements,/62

Audit coverage,/62

Computer-informalion exchange,/62

Training,/62

File :

Exempt organization master file,/18

Federal tax deposit system,/89

Financial managemen t

Statistics on,/78

Foreign investors,/46, 47

Foreign tax assistance program,/50, 51

Foreign tax officials assistance to,15I

Forms and,form lefters,/6

Fraud investigations,/2 3

G

General Litigation Legal Services,/57

Gift,taxes ;

Collections, / 1 22

Refunds of,/134

Return . fil.d,/136

Income tax(es)

Additional, from enforcement,/25

All returns,/122

Corporation,/122

Processing of protested cases ./20

Indictments.

Individual income taxes:

Appellate Division, processing of,/20

Collections, / 1 22

Mathematical verification of,/92

Refunds of,/134

Returns :/136

Classification and examination of,/1 3

Filed,/136

Informing and assisting taxpayers,/3

Inspection activities:

Internal audit,/70

Internal Securlty,/72

Investigalion,/72 ,

Statistics on,/74, 76

Intelligence Division

Statistics on,/24, 26, 27

Tax-fraud investigation,/28

Inter-American Center of Tax Adminis.

trators,/5 0

International tax training,/Sl

Interpretative activities,/58

i

Joint Committee on Internal Revenue

taxation,/1 8

L

Legal activities/53-59

Legislative activities/59

El

Magnetic Tape,/93

Management activities,/69-8 6

Map of Internal revenue regions and

districts ./97

Mathematical verification:

Additional tax from,/92

Statistics on,192

0

Obligations Incurred, Internal Revenue

Se rvice,/78,14 a

Officers, principal, Internal Revenue

Service,/98-103

P

Pension trust plans,19

Personnel :

Equa! employment program,/82

Hand i capped, use of,/82

Invesilgations,/76

Recrui ment,/8 0

Statist! on,/79

Plannln~lcactivlties,/61-67

Prog no :

Foreign tax assistance,/50, 51

Overseas taxpayer compliance,/44-47

Strike forces,/3 1

Taxpayer assistance,/2, 3

Prosecution,/23-25

Protested cases, statistics on,/20

Public Information program,/2

Publications, taxpayers,/ 6

R

Railroad retirement taxes,/122

Recruitment,/80

Refunds:

Excessive prepayments,/134

Statistics on ./134

Undeliverable,/9D

Regulations:

Other,/6

Selected regulations published,/6, 8

Requests :

Technical AdvIce,17

Revenue Rulings, analysis of,/7

Returns filed :

Classification and selection of,/13

Examination of,/12,1 4

Number examined,/14

Projection,/66

Statistics on,/136

Verification, /9 2

S

Self-employed persons benefit plans,/9

determination letters-on,/9

Seminar, Inter-American,151

Service to taxpayers,12, 3

Statistics, highlights,/V

Statistics of income releases,/64

Supreme Court Decisions :

Civil cases,/11 0

Other court actions,/110, Ill

T

Tax conventions,/48

Tax forms,/6,108

Taxes, Additional

From mathematical verification, /92

From examination,/1 4

From mathematical verification ./92

Taxpayer assistance program,/2, 3

Tax ruling s

Request for,/7

Statistics on,17

Tobacco tax(es) ;

Collections, / 123

Refunds of,/134

Returns flied/136

Statistics on,/123, 134,136

Training:

Foreign,/51

Other,/80

U . S. GO~N- P-M OFF= : 1973 0 - 52-68

U

Unemployment Insurance taxes :

Collectlons,/122

Refunds of,/13 4

Returns filed./13 6

V

Verification, mathematical, results of,/9 2

W

Wines, taxes collected,/123

Withholding taxes by employer,/ 122

Workflow In service and the Courts,/26

I

147