0 1971

Annual Report

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1971

Annual Report

................ , Commissioner

the

of

Internal

Revenue

1~" 1.~i::~;::::::::::::--: ::~l~ :::::::.,..-.::::::::::"" ,

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40
EN~MV~M@m (Dy ag VV(&fflWgV

ri

Dear Mr . Secretary :

Internal Revenue Service

[D@ 9@9M

We are pleased to present to you the Annual

Report of th a Internal Revenue Service covering

the Fiscal Year 1971 .

As

you knew, we arrived too late to have

any part in the acco"plishments described in this

raper t . Ac c ordingly It report constit tea a

i .t er h

f o

tribute to the able ad. 6 ip o ur predecessor,

Randolph W . Thrower

,

and the cmpetence and diligence of interne1

Revenue Service =ployees

generally .

Sincerely yours ,

Hono rable John B . Co one lly

Secretary 0 f the Treasury

Washington, D . C . 20220

Johnnie M . Walters

Expansion and improvement of the Sam- ice's

automatic date processing facilities

continued during Fiscal Year 1971 . Pictured above is Vice President of the

United States, Spiro T. Agnew taking part

in the groundbreaking ceremonies for the

new Service Center in Memphis on Sep .

tember 22, 1970. Seated on the platform,

left to right, are

:

Ned Cook, Chairman,

Memphis Airport Authority; Dan H . Kuykendall, Member of Congress, 9th District

Tennessee, Albert Gore, then U.S. Sena .

tor'

Tennessee; and Randolph W. Thrower,

then Commissioner of Internal Revenue .

For s I a by the Su rintendent Wagh of Documents, U .S . Government Printing Office

. ngton. D.C ., 20402 - P,ic"$ .50 (paper cover)

Stock Numbe, 48 392
Contents Letter of Transmittal / 11

Report on Operations

Informing aqd Assisting Taxpayers / 3

Receipts, Refunds and Returns Filed / 11

Enforcement Activities / 17

Organized Crime Drive and Firearms Activities / 35

International Activities / 4 1

Legislative and Legal Activities / 49

Planning Activities / 57

Management Activities / 65

Organization-Principal Officer s

Organization of the Internal Revenue Service 80

Internal Revenue Regions and Districts / 81

Principal Officers / 82

Historical List of Commissioners / 86

Appendix

Taxpayer Publications / 88

Tax Form Activity / 90

Court Decisions 92

Statistical Tables 96

Index / 128

The Tax Dollar

Where it came from . . .

Fiscal Year 197 1

520--Individual Income Taxes

'

60--Corporation Income Taxes

210-Employment Taxes

90-Excise Taxes

20--Estate & Gift Taxes

Statistical Nighlights

[Amount (thousand dollars) l

Gross Co!lections

,ndi,idual Income

Corporation Income

Employment

Estate and Gift

Excise

Refunds :

Number

Amount

R:turns Filed

R na Examined:

N

Tax Increase Recommended m be '

Returns Mathematically Verified :

Number

Amount of Tax Increase

Amount of Tax Decrease

Delinquent Returns Secured :

rl umber

Amount

Delinquent Accounts Collecte d

Notes

All yearly data are on a fiscal year

basis, unless otherwise specified .

For example, data headed "1971"

pertain to the fiscal year ended

June 30, 1971 and "July 1" inventory items under this heading

reflect inventories as of July 1,

1970 .

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 .

20402 . Price $1 .50 (paper cover) .

percent

1970 1971 chang e

$195,722,096 $191,647,298 -2.1

$103 .651,585 $100,752,421 -2 .8

$35 .036,983 $30,319,953 -13 .5

$37 .449,188 $39,91816so 6. 6

$3,680,076 $3,784 .283 2.8

$15,904,264 $16 .871,852 6.2

55.274,474 55,916.604 1.2

$16,188 .109 $19,022,568 17.5

113,078,185 211,447,000 -1 .4

2008 .896 1,645,929 -18.1

$3 :100,000 $3,408,347 9. 9

88 .355.000 72,938,000 -17 .4

$506,962 $313,052 -38.2

$212,260 $140,235 -33 . 9

738,000 735,000 -0.4

$ 370,111 $489,359 32 .2

$2.517.563 $2,606,838 3.5

Report on Operations / 1
Informing

and Assisting

Taxpayers

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

'1111111 . ....... ......I

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

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

I

I
Service Impact

on Public

Maintaining effective contact with

the public was emphasized

throughout the Service in 1971 .

Steps were taken to ensure that

personnel dealing with taxpayers or

their representatives recognize and

report potential problem situations .

In problems involving public reaction and misunderstanding, every

effort was made to ensure that

timely, full, and accurate accounts

were given to the public .

Underwithholding Information

The Service developed a campaign

to inform taxpayers that because of

changes in the law, they may not

have sufficient withholding to cover

their tax liability for 1971 . The

Service solicited the aid of employers in informing employees about

the underwith holding problem .

Radio and television announce .

ments were provided on the underwithholding theme, supplemented

by news releases, instructional

packets and materials, interviews,

and feature articles. Material was

disseminated to approximately

2,000 employee publications,

4,200 newspaper women's page

editors, 7,000 community leaders,

500 labor newspaper editors, and

chief executives of some 200,000

major business and governmental

organizations .

Taxpayers Aided In

Understanding Tax Reform Act

The Service directed a special informational program at the millions

of taxpayers affected by the Tax Reform Act of 1969 .

Emphasis was placed on a new

low-income allowance, which exempted many from paying income

tax and reduced the tax for others.

Since many of the approximately

five million affected by the allowance were in lower economic groupings and could least afford to pay

for tax assistance, it was important

that they be apprised of their filing

4/ Annual ReportI Chapter One

status . The Act also liberalized filing requirements so that more taxpayers, including large groups of

retired persons, could choose to

have the Service compute their tax

liability. Special publicity was also

directed to these taxpayers .

Other changes receiving emphasis

included an increase in personal exemption, establishment of a new

minimum tax, extension of optional

tax tables to many more taxpayers,

and elimination of the tax

surcharge.

Errors Delay Refunds

Another public information program reminded taxpayers that errors can delay tax refunds . Errors

were also linked to higher processing costs for the Government and

probability of time, consuming correspondence between taxpayers

and the Service .

Taxpayers were urged to use the

correct tax table and column, check

their mathematical calculations, attach the Form W-2 and all other

supporting documents and schedules, sign the return, and list the

correct social security number .

Taxpayers were also encouraged

to use the peel-off label affixed to

the cover of the 1040 package

since it contained their social security number, name and address .

The error prevention campa i.gn

was extended to charitable contri .

butions, dependents, medical and

travel expenses, and state and local

taxes. In advising taxpayers to file

their returns as early as possible,

the Service stressed that many errors result from the last-minute

rush to beat the filing deadline .

Explosives

Control Information

Announcements were sent to 300

television and 857 radio stations to

inform industry and the public

about the Organized Crime Control

Act of 1970 relating to control of

explosives. News releases were

sent to trade associations and the

news media explaining licensing

requirements for dealers and permit requirements for users . Exhibits at military installations featuring

explosions and gathering of evi .

dence, were covered by television

networks, national publicatiohs,

and wire services.

Public Informed

of New Legislation

in response to inquiries from the

press and others about provisions

of the new Airport and Airways Act

of 1970, materials were prepared

providing guidance to the industry

and interested individuals . The

1970 Act levied new taxes on aircraft, aircraft fuel, air passengers,

and cargo and increased certain

existing excise taxes .

Student Exemption

Withholding Certificates

Students working for the summer were alerted to a new withholding exemption certificate (Form

W-4E) which they could file with

their employers to prevent withholding of Federal income tax

where no tax liability was

anticipated.

Heavy Media Use

of Service Materials

With cooperation of the various

news media, more taxpayers than

ever before were exposed to the

Service's informational programs .

Service employees delivered more

than 5,500 speeches, responded to

some 45,000 media inquiries, and

participated in several thousand

interviews throughout the country .

Many inquiries dealt with issues evoking widespread interest .

Among the more sensitive issues

were such topics as eligibility of

private schools for tax exemption,

public interest law firms, exempt

organizations, asset depreciation

ra X system regulations and

guidelines, war tax protesters,

bribers and kickbacks .

Taxpayer assistance is a year-round

effort. Many taxpayers visit Service

offices for assistance especially during th have m= e season, Many offices

facilities .

taxpayer assistance

Informing and Assisting Taxpayers / 5
I

News releases, technical issuances, and other materials were

sent to daily and weekly newspapers, covering every aspect of

Service activity of interest to the

taxpayer. Nearly 500 feature articles were written about Service

operations . For the seventh consecutive year, the Service provided

newspapers with a weekly "ques .

tions and answer" column based

on most frequently asked taxpayer

questions . 1,285 daily newspapers

(70 percent of the total) and 4,605

weeklies (almost 55 percent) used

the material during the filing period . Many newspapers continued

to publish the column after the

filing season.

Radio and television carried much

of the Service message. District

and regional office personnel participated in more than 5,400 locally

developed features . Materials were

used by 4,552 radio stations and

704 television outlets. Steps to in .

form the public involved the use of

pamphlets, fact sheets, posters,

displays, and exhibits . Magazine

articles were prepared for tax,

farm, business, a n d I a b o r

publications .

Broadened Taxpayer Services

Reach 35 Million

A record 35 million taxpayers were

served in 1971 . Eighteen million

persons were assisted by telephone, nine million visited Service

offices, and 350,000 received help

through correspondence with district offices. Forms and publications were furnished to more than

two million taxpayers . It is estimated that an additional 6 .5 million

were reached through various taxpayer education programs.

Because of the importance the

Service attaches to assisting taxpayers efficiently, expeditiously,

and courteously, a great deal of

effort goes into developing and retaining a corps of 1,000 trained

Taxpayer Service Representatives

augmented by specially selected

and trained temporary employees

during the filing season. These employees provide year-round service

at 481 locations .

I maginative Method s

used to Enhance Service

Centiphone, a system of toll-free

lines, is being installed in a number

of districts to enhance taxpayer access to Service offices .

Beyond the help provided in Service offices and through formal

programs, many districts used

imaginative approaches to provide

convenient taxpayer service . Taxmobiles were stationed at shopping

centers as well as inner-city areas

and near apartment complexes

housing senior citizens ; Service employees visited VA hospitals, State

Correctional Institutions, and Community Centers to provide tax information and asssitance .

Remodeling of Taxpayer

Reception Areas Continues

Approximately one hundred offices

were remodeled this year continu.

ing the Service's five-year program

to upgrade taxpayer reception and

service areas into a nationwide network of attractive and functional

offices .

Taxpayer Education and Special

Assistance for Students,

Older Citizens and Lower

Income Groups

Teaching Taxes, the largest Service

taxpayer education program, provided materials and instructions to

3 .2 million students in 21,000 high

schools . The Teaching Taxes Program explains the tax system and

provides practical instructions in

filling outtaxforms .

The Armed Forces Income Tax Law

Course was completely revised, and

work was initiated to develop a

package of Farm and Small Business Institute materials.

The Service continued to make tax

information readily available to

older citizens and lower-income

groups . The Volunteer Income Tax

Assistor (VITA) Program provided

training to volunteers who aid the

under educated in preparation of

tax returns . The number of volunteer assistors almost doubled in

1971 and the number assisted increased from 104,000 to 172,000.

Advances were also made in Institutes and special group courses.

The Service's Tax Institutes for the

elderly, working in cooperation with

the 16stitutes for Lifetime Learning,

were held in twenty cities . Coverage

is expected to double next year.

Bulletin Provides

Official Guidance

The Internal Revenue Bulletin has

served as a depository of precedent

material for over 50 years . Information published this year included : 599 Revenue Rulings, 34

Revenue Procedures, 47 Public

Laws and related Committee Reports , 2 Executive Orders, 2 Tax

Conventions, 3 amendments to the

Statement of Procedural Rules, I

Treasury Department Circular, 2

Treasury Department Orders, 17

Delegation Orders, 1 revised Statement of Organization and Functions

of the Internal Revenue Service,

and 230 announcements of general

interest . Also announced were 83

acquiescenses and non-acquiescences to adverse decisions of the

United States Tax Court .

Although the Bulletin has become

the authoritative instrument of the

Commissioner for announcing official rulings and procedures, accumulation of material has made it

cumbersome . To compound the

problem for tax researchers, many

earlier volumes are no longer

available .

The Service reacted to this condltion in 1957 by initiating a research

se rvice, titled the Index-Digest Supplement System, to help tax researchers find items published in

the Bulletin after 1952 . The first

volume covered the period 1953

through 1956 . Additional volumes

were issued for periods 1957

through 1960, and 1961 through

1964 . Cumulative supplements

were issued periodically throughout those 4-year periods to keep the

System current . With those supplements, a researcher could use

either the finding lists or the topic

index approach to locate precedents relating to a specific issue.

6 / Annual Report / Chapter One

By 1969 the Index-Digest Supple.

ment System became unwieldy be.

cause researchers needed all thre e

'volumes plus the latest cumulative

supplement to find precedents

back to 1952. To correct this condition, the Service developed a new

format that divides the System into

five parts : Income Tax, Estate and

Gift Tax, Employment Taxes, Excise

Taxes, and Alcohol, Tobacco and

Firearms.

The first five basic volumes issued

in the new format covered only the

period from 1965 through 1968 .

Converting all the pre-1965 material into the new format has been

scheduled for completion by the

end of calendar year 1 972. When

completed, all Index-Digest Supplement material back through 1953

will be included in new editions of

the five basic volumes using the

new format.

All previously published Index .

Digest material is being reviewed to

purge obsolete items . Material cur .

rently effective is being reviewed to

assure that it meets current

standards .

In the related project to review all

pre-1953 rulings and update or

declare them obsolete under cur.

rent law, 308 rulings were declared

obsolete and 175 were superseded

. by new revenue rulings : After purging and conversion to the new for.

mat is completed, the system will

Provide easy access to all published

rulings effective under current law.

Recent Developmen t

in Tax Law Communicated in

Publications for Employees :

A series of publications under the

title Review of Technical Developments were issued to update tech .

nical skills of Service personnel

whose duties involve application of

tax laws.

Quarterly Reviews covered latest

legislation, regulations, court decisions, and published rulings affecting individual and corporate

income taxes. Selected developments relating to employment,

estate and gift, and excise taxes

were covered in the annual review.

A 225-page special edition covering

the Tax Reform Act of 1969 attrac .

ted widespread attention . It was

used in Technical Review Institutes

conducted in the National Office,

training meetings in field offices,

and in tax seminars conducted at

several universities.

Another series of internal-use publications titled Tax Briefs were is .

sued every four weeks . Tax Briefs

contain short statements that keep

field personnel advised about latest

Published rulings, regulations, and

selected court decisions . Pocket .

size format and simplified editorial

style promotes rapid use to identify

matters worthy of further study.

Reports on Current Tax Literature

were issued every 2 weeks to alert

Service officials to recent articles

about tax avoidance schemes crill .

CiSm of the Service, and s~ggestions for legislation .

Deductible Contributions

Guide for Donors

and Service Personne l

During the year 9,871 names were added and 1,180 names were de .

leted from the list of organizations

to which contributions are de .

ductible for Federal income tax pur.

Poses . The latest biennial revision

Publication No ' . 78, contains the

names of approximately 130,000 organizations . Cumulative bimonthly supplements to the list reflected additions, changes, and

deletions.

Published Rulings and

Procedures Guide Taxpayers

and Service Field Offices

Administrative interpretations of

the Internal Revenue Code a nd regulations are anounced as Revenue

Rulings. Rulings officially estab.

lish a Service position that may be

cited and relied upon by field em.

ployees when examining returns in.

volving similar issues.

Internal practices and procedures

t hat affect taxpayers rights and obligations are announced as Rev.

enue Procedures . Procedures of

continuing significance are periodically incorporated into the Statement of Procedural Rules.

During the year, 633 Revenue Rul .

ings and Revenue Procedures were

published for guidance of taxpay.

ers, tax practitioners, and Service

employees .

Shown below are the numbers of

Revenue Rulings and Revenue Pro .

cedures published during 1971 in

the various tax categories:

Revenue Rulings and Revenue

Procedures Published

iypo

Total

Administrative

Al-hol.t.bs .wcnd filearm s

Employment taxes

Estate and gift taxes

Excise taExempt organizations

Income tax

Pension trusts

Tax conventions

Number

63 3

9

27

69

20

311

2 8

383

55

4

Following are examples of

significant administrative

interpretations and

procedures published :

Revenue Ruling 70-519 provides

that individuals may deduct as

charitable contributions unreimbursed expenses such as costs for

admissions and meals which they

incur a volunteers in helping

underp rivileged children selected

by a charitable organization.

Revenue Ruling 70-604 sets forth

guidelines involving treatment, for

Federal income tax purposes, of un .

expended assessments on hand at

the close of the taxable year that

were received by condominium

corporations.

Informing and Assisting Taxpayers / 7
Revenue Ruling 70-585 discusses

the circumstances under which

nonprofit organizations, created to

provide housing for low and moderate income families under Federal and State programs, can qualify for exemption from income tax .

Revenue Ruling 71-188 authorizes

labeling of a new colorless product

as "white" whiskey which retains

all familiar whiskey characteristics

except color .

Revenue Ruling 71-227 provides

tolerances for filling bottles and

cans of beer . Brewers experienced

rejection of some shipments because selected samples were below

tolerances set by certain states.

The guidelines of this ruling and

conferences with state revenue officials should overcome the

problem .

Revenue Ruling 70-338 permits

use of distilling materials as feed

for livestock. It specifies a method

for rendering distilling material,

such as fermented molasses, unfit

for further distillation, thus precluding diversion of the material to

illicit operators .

Revenue Procedure 71-17 sets

forth guidelines for determining the

effect gross receipts derived from

use of a social club's facilities by

the general public have on the

club's exemption from income tax.

The Revenue Proced u re describes

records required when non-mem .

bers use a club's facilit ies and circumstances under which a hostguest relationship will be assumed .

Pension Trust Activity

The number of new pension and

profit-sharing plans increased substantially; as did amendments to,

and terminations of, existing plans .

Vast sums of money behind these

plans (at the end of 1970, assets

of private pension funds had grown

to $136 .1 billion) and millions of

people affected by them are becoming frequent topics of discussion in

the public press resulting in Congressional attention and proposed

legislation.

8 / Annual Report / Chapter One

Statistics on self-employed plans

a re not available for 1971 since

issuance of advance determination

letters to self-employed individuals

who adopt approved master and

prototype plans has been discontinued . Statistics of determination

letter activity on corporate-type

plans are shown in the table below :

Determination Letters issued on Employee Benefit Plans

Determination letter. .sued ith

,..P ..t to1 . Initial qualification of plans ;

a. Plans opormed

Number of participating amploys. .

b Plans disapprwed

2

.

T~Iminati .n of plan.

3 . Amendment s

4. Imestments,

C~ases closed with :ut issurce of deter

mination letter n doth rdisPosals

Proilt sharing

and stock

bonus plans

Pension

a, nnuity

plans Total

17

.0

12 19.413 36.425

331 .442 948,604 1 .280.04 6

118 161 279

1517 1,399 2,916

4 :085 10,403 14,488

236 240 476

1,403 2,381 3,784

Specific Technical

interpretations for

Taxpayers

and Service Employees

Thousands of individuals and organizations wrote to the Service for

interpretative assistance where tax

implications of their financial transactions could not be clearly determined from the tax law, regulations, or published rulings. Others

wanted permission to change their

accounting methods or periods.

Many corporation taxpayers asked

for earning and profits determine .

tions. During the year 32,297 taxpayer requests of the foregoing

types were processed .

District Directors request technical

advice from the National Office on

problems encountered in examination of tax returns . During the year

3, 099

field office requests were

processed .

Taxpayer and field office requests

for tax "rulings" and advice in

various tax categories are shown

in the table below :

Requests for Tax Rulings and Technical Advic e

subject

Tota l

Accounting methods

Accounting periods

Actuarial Matters

Administrative provision,

Alcohol . tobacco . and firearms taxes

Earnings and profit,

Employ ment and self-emo[Mmo-t

..a.

~n .ineering questions

Estate and gift taxes

Exempt organization .

Other excise taxes

Other income tax matters

Pension trusts

Total requests

35,396 32.29 7

3,337 3,337

10,683 10,683

88

88 744

2

7,362 5,689

81 9 819

Taxpayers' Field

25 225

147 56

4sil'

39 1

3,1125 3,469

321 224

5,878 5533

2,140 1 :755

requests

3,09 9

4-41 6

1,67 3

28

91

64

356

97

345

385

Municipal Bond Issues

Many government agencies requested rulings before proceeding

with bond issues to provide funds

for such programs as urban redevelopment, aid to education, and

ecological improvements . Rulings

holding interest to be tax exempt

were issued for 123 bond issues involving more than $3.6 billion .

Important

Tax Exemption Decision s

The decision of July 10, 1971 to

deny recognition of tax exemption

to private schools that practiced

racial discrimination had widespread public interest . Tax exemption will no longer be recognized

unless the particular school estab.

lishes to the Service's satisfaction

that a known nondiscriminatory admissions policy is practiced .

All private schools previously recognized as tax exempt were canvassed to determine whether they

will follow a nondiscriminatory admissions policy.

The Service also dealt with the

question of qualification for tax exemption of "public interest law

firms," that is, groups desiring to

litigate in the public interest . An in .

tensive study of the issues was

undertaken and submissions were

solicited from interested parties .

The study resulted in announcement of guidelines under which

public interest law firms will be

issued rulings recognizing them as

charitable where they engage in liti .

gation that can reasonably be said

to represent a broad public rather

than private interest.

Special Committee on

Life Insurance Company

Tax Problems

A Special Committee on Life In .

surance Company Tax Problems

was established to study and resolve controversial issues raised in

Connection with examinations of

Federal income tax returns of life

insurance companies . The committee will meet with industry representatives in an effort to resolve

any issues that may be identified .

The Committee consists of representatives from the offices of Assistint Secretary for Tax Policy,

Assistant Attorney General, Tax

Division, Assistant Commissioner

(Technical), Assistant Commissioner (Compliance), and Chief

Counsel .

Tax Return Forms

Updated and Improved

The Tax Reform Act of 1969 required development of several new

forms, revision of existing forms,

up-dating instructions, and distribution of current information to

employers on the correct amount of

income tax to withhold . The most

significant and rewarding effort was

made in the individual income tax

return, Form 1040, area where

Service efforts were aided by the

results of a survey conducted by a

private firm. There was widespread

satisfaction with the format and

other changes made in the 1970

Form 1040 and its related forms

and schedules . A special document,

Publication 713, was also issued

to assist individuals in computing

their estimated income tax.

Many of the technical changes

made implement features contained in the Tax Reform Act of

1969, but most revisions, rearrangements, and design changes

were based on analysis of surveys

of taxpayer and Service experience

with the "single form" Form 1040

introduced in 1969.

A Form 4683, U .S . Information

Return on Foreign Banks, Securi .

ties, and Other Financial Accounts

was issued this year. If a return

filer answered "yes" to the question appearing on his income tax

return, indicating he had an interest in or control over such an

account, he was required to submit

Form 4683 with his return. This

information is needed to promote

the Government's overall efforts in

combating organized crime and tax

evasion . Extreme care will be exercised in control and use made of

this information to protect the

privacy of citizens.

Information explaining new depositary rules was made available to

-persons required to withhold income tax or make deposits of excise taxes . Some changes took effe ct at varying dates during the

year, which made it somewhat more

difficult to clarify the rules .

A revised Form 990, Return of Organizations Exempt from Income

Tax, replaced four forms formerly

in use (Forms 990, 990-(SF),

990-A, and 990A(SF). A thorough

review based on comments solicited from practitioner groups and

Service personnel is presently underway to determine what further

improvements can be made in this

area .

A list of new forms and forms which

have been 'eliminated, transferred,

or reinstated, appears on page 90 .

Centralized Review

of Public-Use Forms

and Form Letters

The centralized review of public-use

forms and form letters, insures

that tone, quality, and clarity are

maintained at a high level .

More than 3,000 field office forms

were reviewed-this follows review

last year of National Office forms .

New or revised forms were reviewed

as they were proposed .

Taxpayer Publications

Mark Anniversary

This year the Service marked the

thirtieth anniversary of its program

to provide taxpayers with plainlanguage materials for self-help in

preparing their tax returns . The

series of articles for publication in

newspapers under the title Your

Federal Income Tax first appeared

in 1940 . Several years later an expanded version of those articles

was collected and published in a

Informing and Assisting Taxpayers / 9
booklet offered for sale to the public . The introductory remarks in

that booklet stated that it was "designed as an aid to a ready understanding of the principles on which

our income tax laws for individuals

are based . . . "

From that modest start, the annual

revisions of the now familiar "blue

book" entitled Your Federal Income

Tax have gained wide popularity as

a reliable, easy-to-use source of all

the information most taxpayers ordinarily need in filing their individual returns . Total annual sales

exceed 14 million.

The success ofthat first publication

established the Taxpayer Publications program as a major part of

the effort by the Service to provide

taxpayer assistance . New developments in tax laws precipitated a

demand for additional publications

to provide information taxpayers

need under our system of voluntary compliance. Some of the first

publications in response to that

need were Tax Guide for Small

Business, Farmer's Tax Guide, and

reprints of selected chapters from

Your Federal Income Tax .

in recent years it has become necessary to carefully choose material

to be included in annual revisions

of Your Federal Income Tax, Tax

Guide for Small Business, and

Farmer's Tax Guide, so that they

do not become unwieldy . As a result, there are now more than 80

separate publications in addition to

the major-booklets . Separate publications that were initially chapter

reprints have been expanded to include detailed information not contained in Your Federal Income Tax

or Tax Guide for Small Business .

Most publications were revised

during the year to reflect new developments in the tax law, and material in selected publ ications was

rearranged and rephrased to improve appearance and readability .

New publications added this year

include Excise Tax Information on

imported Foreign-Made Automobiles and a Comprehensive Tax

Guide to United States Civil Service

Retirement Benefits.

For further information about cur.

rent publications see page 88.

Regulations Aid

Uniform Administration

of Revenue Laws

The Service continued the most am .

bitious tax regulation writing program ever attempted . The Tax Reform Act of 1969 required the Service to issue regulations to provide

interpretative assistance to taxpayers in record time. That Act alone

requires preparation of 179 regulations projects . Each project was

scheduled for completion in accordance with a list of priorities so

regulations could be issued in

order of greatest need . The following publications appeared in the

Federal Register on projects associated with the Tax Reform Act : 28

Treasury decisions containing final

regulations ; 9 Treasury decisions

containing temporary regulations ;

and 68 notices of proposed rule

making . These publications included such difficult and important

areas as private foundations, charitable contributions, minimum tax,

stock dividends, and real estate depreciation. With respect to other

projects not under the Tax Refor

Act, the following publications appeared : 25 Treasury decisions contai. ruing final regulations ; 6 Treasury

decisions containing temporary

regulations, and 27 notices of pro- p sed rule making . The most significant Treasury decision published

in this category concerned the new

Asset Depreciation Range System .

Regulations ordinarily appear first

in a notice of proposed rule making

which invites written comments on

proposed regulations and informs

the public that a hearing may be requested . To make these public

hearings more useful in developing

responsive regulations, the Statement of Procedural Rules of the Internal Revenue Service was

amended to provide ground rules

for conducting hearings .

New rules provide that anyone desiring to be heard at a pub_lic hearing must submit written comments

or suggestions relating to proposed

regulations within the time specified in the notice . Such persons are

required to submit a written outline

of topics they will discuss at the

public hearing, together with an

estimate of the amount of time required for each topic . On November 18, the first public hearing using these new rules was held . During the year, 15 public hearings

were held on the provisions of proposed regulations and were attended by approximately 1120

taxpayers or their representatives .

Alcohol and Tobacco Industries,

and Firearms Licensees

Notified of Technical Changes

The Service continued its program

of issuing circulars to apprise alcohol and tobacco industries and

firearms licensees of the require.

ment of laws, regulations, rulings

and procedures .

Of the .31 circulars issued the majority dealt with related documents

such as Treasury Decisions and

Revenue Rulings. Two pertained to

continued use of plastic liquor bottles on an experimental basis, and

another pertained to an agreement

between the French and American

Governments for maintaining generic integrity of bourbon whisky

and certain French brandies .

Receipts

Refunds

and Returns

Filed

t

10 / Annual Report/ Chapter One
Receipts

The steady increases in Federal tax

collections, starting in 1959, ended

in 1971 . Total receipts of $191 .6

billion this year were 2 .1 percent

below the record 195 .7 billion collected in 1970 .

While five of the seven major

classes of tax reported gains, the

decline in individual and corporate

income taxes was sufficient to

cause an overall decrease .

Individual income tax receipts of

$100 .8 billion, were down 2 .8%

from last year.

The decline in individual and corporation receipts can be attributed

in part to the elimination ofthe 5%

surcharge effective at the beginning of the fiscal year.

Corporation tax receipts for 1971

of $30.3 billion represent a decline

for the second consecutive year.

An 8.6 percent ($3 .3 billion) drop

was recorded in 1970 and a 13.4

percent ($4.7 billion) drop this

year . While the decline of $4.7 billion is the second largest ever recorded, the percentage of decrease

(13 .4 percent) was exceeded in

1946, 1947 and again in 1955 .

Federal Unemployment Tax Act

(FUTA) collections increased $196

million, up 25 .3 percent . Two factors account for this increase . First,

initiation late in fiscal 1970 of

quarterly instead of annual FUTA

payments and second, phasing-in

increased deposit requirements .

The one third tax deposit requirement per calendar quarter in 1970

was increased to two thirds in

1971 .

Tax Collections From All Sources

MR11111M

1971 Excise Tax Collections Reach Record High / 1962-197 1

1962 1963 1964 1965

'Effect of extbar tax mdultion It .11965

1966 1967 1968 1969 1970 1971

Excise tax revenue rose to a record

$16 .9 billion, 6 .1% above 1970

collections . As shown by the chart

on the preceding page which presents data for the past tenyears,

excise tax collections dropped

sharply in 1966, taking three years

to exceed the 1965 level . The 1966

decline was caused by the Excise

Tax Reduction Act of 1965 . Thereafter, excise tax receipts have

steadily risen . Restoration of automobile and communications taxes

under the Tax Adjustment Act of

1966, and the Revenue and Expeniture Control Act of 1968 along

with additional excises under the

Airport and Airways Development

Act of 1970, have brought excise

tax collections to new highs . New

airways taxes include: a five percent tax on cargo, an aircraft use

tax based on weight and mode of

propulsion, a $3 .00 head tax on

flights abroad and to the states of

Alaska and Hawaii, and a 7 cents

per gallon tax on general aviation

fuel .

Gross collections by class of tax

for 1970 and 1971 are shown in

the following table .

Gross internal revenue collections

[Dollars in thousands. For details see table 1 , p. 100 .1

Source

Refunds

Approximately two-thirds of the

country's taxpayers overpay their

Decline in Interest Paid

per Dollar Refunded

fy 1966 through 197 1

taxes each year. Providing there are 1 . 5

no errors in returns when filed, refunds are normally paid within six

weeks. 55 .9 million taxpayers received $19 billion in refunds in

1971 including $132 .1 million in

interest . The average refund in

1971 was $340, compared to $293

in 1970 . The average amount of interest per dollar refunded was 0 .7

cents, maintaining the record low

reached last year . Emphasis on expeditious refunding is illustrated in

the chart at the right which shows

the relationship of refunded principal to interest paid from 1966

through 1971.

Par, ...t .1

197 1

collections 1970

1966 1967 1968 1969 1970 197 1

Increase or docressireas

Grand total I 100 .0

income taxes, total 68.4

Corpomflon 15.9

Individual, total 52. 6

Withheld by employers1 39.9

Other1 12.6

Employment taxes, total 20. 8

Old-age and dissability, insurance, total 19.8

Federal insurance contribution 18.7

Self-employment insurance contribu ,

th'

.

1 .0

Uns mployment insurance 0.5

Railroad retirement 0.5

Estate and gift taxes 2.0

Excise taxes, to"I 8 .8

Alcohol 2.5

Tobacco 1.2

Other 5. 1

IGo_ Collection, - dius ad to exclude amounts transferred to the

rnme ~t

, Guris

m . For details see table I , p .100 and footnote

5 . P .M .

I Estimated.-Collections of individual income tax withheld are

not reported separately lrormSeld4aalie and dissibi lity insurance

taxes on wages and salaries m ry, collections on individual

income tax not withheld re not reported separately from old-19

and :

d

se bility insurance taxes on self-employment income . T

1971 - Amount Percen t

$195,722,096 $291,647,198 -4,074,898 -2.1

138,688.56a 131,072,374 -7 .616.194 -5. 5

35,036,983 30,319,953 . -4.717,030 -13 .5

103 .651,585 100,752,422 -2,899.164 -2.8

77,416,070 76,490,128 -925,942 -1 .2

26 .235 .515 24.262,293 -1,973 .222 -7.5

37,449,188 39,918,690 2,469,502 6.6

35,692,198 37,902,403 . 2,210.295 6.2

33 .750.005 35,954,752 2,204.747 6 .5

1 .942.193 2,947,651 5.548, 0 .3

776,139 927,409 196,270 . 25.3

980,851 2,043,878 63,027 6. 4

3,680 .076 3,784,283 104,207 2.8

15 .904,264 16,671,652 967,587, 6.1

4.746.382 4,800.482 54.100 1.1

2,094,212 2,206,585 112.373 5 .4

9,063.670 9,864.784 801.114- a s

amount of old-age and disability insurance tax collections shown

is based an estimates made by the Secreta7 of the Treasury t

pursuant to the provisions of sec . 201(a) of t a Social Security

Act as amended, and includes all old-age and disabil!Y, In

u

rence

taxes. T he estimates shown for the 2 clasusms of indivi tib'~iricome

!axes were derived by subtracting the old-age and'disabilitY

insurance tax estimates from the combined totralas rape t.d .

,Revised .

12 / Annual Report /

Chapter Two Receipts, Refunds and Returns Flied / 13

445-070 0-72---2
Internal Revenue refunds, including interest

I Far ref .ml, by laiii . . and di,tfict . sea table 5. p . 1 1 2

Type of tax Number

1970

Total refunds of internal revenue 55,274,47 4

Corporation income taxes 203,548

Indevidualtailincome and employmen t

taxes . to , 55,GI5,066

Excessive prepaym..tin.om.U. 1 54,328,644

Other income tax and Federal Insurance Contributions Act taxes 654,113

Railroad retirement 469

Une Mp loyment insurance 31,840

Estate tax 1 1

647

Gift tax 1 :5 52

Excise taxes, total 7 42,66 1

Alcohol taxes 9.456

Tobacco

Manufacturers' and retailers' excis ""' 277e

taxes . total7 5,127

Deep Ine used an far 5 fill

Gasoline, nonhighwan'

1,

489

Other - 3 827

All other excise taxes 6 27,801

Amount refunded Amount of

(principal and Interest- Interest included

thousand dollars) (thousand dollars)

1971 1970 2971 1970 1971

55,926,604 16,188 .109 19,022,566 112,922 132,140

264,291 2,278,530 9,6Z2,489 70,877 87,112

55,596,555 13,666.578 15,083,752 33,474 35,526

S4,285,510 23,018 .068 14,207,752 17,915 18,498

1,263,196 641,226 866,701 15 .331 16,16"

546 720

285

9 S6

47,303 6.564 9,014 220 328

12789 38592 52757 4,9853 316

1 :705 2:385 3 :234 .347 G'39

41,264 202,024 260,332 32 9 2,719

8,918 100,133 204 11 7 25

234 1 .360 2:9566 V)

4,636 74.416 128,563 734 431

369 36900 82638

.

.. . - . . . . .

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

12 1 16 :144 19:275 --------------------- ---

2:976 27,373 26,670 734 'w

27,476 26.115 25,272 2,508 2,257

1 Flyres have not been reduced to reflect reimbursements : from

the edeml Old-Age and survivors, Federal Disabilitg, and Federal

Hospital Insurance Trust Funds mounting to $3 8,094,000 in

1970 . and $517,614,000 in 1971 from the HIV6 Trust Fund

mounting to $ 2 .074,000 in 1970 and $122 . 12, 00 in 1971-

and from the Unem in yloymentTrust Fund amounting t o $6,500,00d

1970 and $122, 12,000 in 1971 .

Net of 113,595 undeliverable checks totaling

$ 1

4 182 :00 in

1 970 a rd 96,148 undeliverable checks totaling $14:547 000 in

1 971 .

- Includes refunds "not otherwise classified."

Includes drawbacks and stamps redemptions .

. .I Includes lubrica=il used for nonhighway purposes, aviation

soline and other ion fuel.

4 Includes aircraft use tax, interest equalization, and other

excise tax refunds.

I Excludes gasoline tax refunds.

- Includesexcise FICAcredits.

-Loss than $500 .

More than 98 percent of refunds Number of returns filed, by principal type of retur n

for all types of tax and almost 80

percent of the dollars were paid to

individual taxpayers, Nearly 19

percent of the dollars refunded

went to corporations, although,

they received less than two percent

of the checks issued . Refunds for

other tax classes and related' details are shown in the accompanying table.

Returns File d

In 1971, 111 .4 million returns

were received-a decrease of 1 .7

million. For the first time since

1957 taxpayers filed fewer individ .

ual tax returns than in the previous year . Although receipts of

most other types of returns increased, a decrease of 1 .9 million

Individual Form 1040 returns

more than offset the increases.

14 / Annual Report / Chapter Two

Ifig-ni, in thsends. F., dnUits, se. Ubl. 6, P. 113

Type of retur n

Grand total

income tax, tota l

Individual and fiduciary, tota l

Individual.qitizens and resident aliens. total

All other individual and fiduciary

Declarations of estimated tax, tota l

Individual

Corporation

Partnerships r

-orpo,ati Other .ns

1970 1971

113,073 111,447

89,225 87,842

78.370 76,620

77,069 7528 0

1,301 1:340

7,375 7,408

7,375 7,40 8

NA NA

1 937 1052

. 726 1 :82 2

817 942

Employment tax, total 21,994 21,869

Employers' Form 941

Emp 3~999

1573 157 7

.Y:15 arm 942 household employees) 3 :8554

8

r. : play I

Em

Farm 943 J

.gr cultural eT loyees) 535 501

Railroad retirement, Form, CT-1 . CT-T

1 a 1

.6

Unemployment insurance, Form 940 1,704 1,76 1

Estate tax 132 149

Gift tax

1

48 165

Excise tax. total 1,580 1,40 1

Occupational tax Form 720 970 702

Alcohol 22 22

(retailers, manufacturers, etc.) 291 BOB

Tobacco

Highway use tax 24

Of or 149

6 5 1 23712

7

, Revised.

High-Low Weekly Receipts of Form 1040

During Filing Period, Fy 1968-197 1

16

Decline in Number of Returns Filed

ImiWidii.1

and fiduciary

0.0imb ..

of astionded

tax

Partnership Corionitim Employment

im

EM931M Fe~

E.d. ral

.11 other

The reduction in Form 1040 receipts resulted from the Tax Reform Act of 1969 which raised the

minimum income filing requirement and provided for a lowincome withholding exemption

option .

The weekly Form 1040 receipts

chart shows a 4-year composite

of the highest and lowest weekly

receipts.

The chart at the left reveals two

distinct peaks ; one caused by early

filers expecting refunds, the other

by last minute filers . The chart

shows a stable filing pattern over

a 4-year period .

The chart below shows that 73%

of individual returns filed in 1971

generated refunds. Full-paid returns (i .e ., where the taxpayer

attached a remittance equal to the

balance of tax due) accounted for

19 percent of the total . The remaining 8 percent represented the

unpaid and nontaxable categories.

About 3 out of Every 4

Forms 1040 Filed in 1971

Reflected Overpayments

73%-Overpaid

4%-Non-Texable

19%-Full Paid

4%-Balance Du e

Receipts, Refunds and Returns Filed / 15
Mathematical Verification

In 1971, fewer taxpayers made

mistakes on their Form 1040 re .

turns-1 in 16 as compared to

1 in 12 for 1970 .

More than 72 million individual

returns were mathematically verified in 1971 . Errors were detected

resulting in upward tax liability

adjustment of $313 million on 2 .9

million returns .

The system also identified returns

of 1 .7 million taxpayers who made

errors against themselves by reporting $140 million in taxes not

due.

The net yield to the Government

from verification of individual returns was $173 million for the

year, or $2 .37 per return verified .

The Service also validated more

than 7 million claims of estimated

tax credits totaling $17 .1 billion.

Estimated tax credits of $16 .9

billion were allowed resulting in a

net yield of $232 million .

Individual income tax returns mathematically verified

it. . ig7o 1§7i

Number thousand. 88.355 '72.938 Number of returns on whic h

changes were made do 7.020 4,647 Returns with increase Number do 504 :

:178 Amount thousand dollars 6962 313,052 2'905

Returns with decrease : Number thousands 2842 1742 Amount thousand dollars 212 :260 140 :235

Net Yield :

Total do 294.701 172PI7 Average per return verified dollars 3 .34 .37

;Dec' 1ne in number of returns mathematically verified is due to fewer returns carried over

rom the prior fiscal year when a record number of returns were verified .

Income Sources Reported

on Magnetic Tape Increases

The Service received almost 360

million information documents (reporting wages, interest and dividends) in 1971-representing

paper volume sufficient to fill more

than 35 boxcars . Almost 70 million

of these information documents

were submitted on magnetic tape,

saving the Service and over 4,600

banks, corporations and other businesses the burden of handling the

equivalent of seven boxcars of

paper .

Information DocumentsMagnetic Tape Reportin g

Docbment

Tax (thaw Reporting

yea, sends) entities

1966 26248 591

1967 36:492

1 .

048

1968 47686 21426

1 969 58:95 1 2963

1970 68 , 300 4

:63

7

The volume of returns received requires

much communication with taxpayers .

This machine prints letters and notices

at the rate of 900 lines a minute which are

mailed to taxpayers who owe a balance ot

tax or to those who have improperly filled

out their tax forms. It would take the ever.

age typist 5 hours to do what this machine

can do in I minute.

...........

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

Enforcement

Activities

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

i
Expanding Audit Program

The audit enforcement program

covers all categories of taxpayers .

It uses men and machines with

special techniques to meet changing conditions. Computers identi .

fied most returns examined during

1971 by ranking them according

to potential tax error .

Once identified, the potential-error

returns are assigned to revenue

agents or tax auditors . Working at

the taxpayer's place of business,

revenue agents examine high-income, complex returns that require

professional accounting skills . Tax

auditors examine returns with less

complex issues, generally by interview at a Service office or by cor.

respondence . In 1970, to gain

maximum use of limited manpower,

tax auditors began to conduct examinations at the taxpayer's place

of business in appropriate circum .

stances .

Computers Select

Returns for Audit

Success of Audit enforcement pro.

grams depends largely on selection

of returns for examination .

Manual audit selection methods

posed serious problems because

they drained off experienced man .

power needed in the examination

z

18 / Annual Report / Chapter Three

activity. The Service had to find

more economical and scientific approaches to select returns for audit .

By the mid-1960's computers were

gradually replacing the extensive

manpower devoted to clas s ifying

returns for audit.

In 1969, the Service introduced

the Discriminant Function System

(DIF), to select returns for examination . Through the use of computers, all individual returns are

classified by the same procedures .

Mathematical formulae are used

to rank returns by error potential

and those having the highest probabilty of error are selected for audit .

The advantages of the Discriminant

Function System are readily ap .

parent . The higher ranked returns

have produced the higher tax yield,

and the classification process has

become more equitable, because all

returns throughout the United

States are screened using the same

criteria . Another advantage is fewer

audits that do not result in tax

changes thus improving taxpayer

relations and oDerational efficiency.

More

Computer-Assisted Audits

To cope with an increasing reliance by businesses on computerized accounting systems, the Serv.

ice is redesigning and improving

its computer auditing techniques

and is training personnel to conduct these more difficult audits .

Computer audit specialist positions have been established in field

offices . Recently, a group of ex .

perienced revenue agents received

10 weeks of intensive classroom

training in data processing, fol.

lowed by 4 to 6 months of on-thejob training . These specialists will

assist Revenue Agents in planning

examinations using computerassisted techniques and set up

procedures to achieve audit objectives . A Programmed Audit Library

is being developed to permit examiners with limited data processing experience to use computerassisted techniques .

Revenue Ruling 71-20 requires

taxpayers to retain pertinent

punched cards, magnetic tapes,

and other machine-sensible tax

data . Since not all data are needed

in a tax examination, a group of

revenue agents have been trained

to respond to requests from taxpayers with computerized accounting systems in determining which

records to retain .

Experienced revenue agents were given

intensive training in data processing

leading to their development as computer

audit specialists. They now plan and

initiate procedures in field offices to

make efficient use of computers in tax

examinations .

Greater Emphasis on

Coordinated Examination s

A significant phase of audit activ.

ity is the Coordinated Examination Program through which the

Service audits the largest U .S . tax .

payers . There are 1,544 cases in

the program, covering 45,452 entities, diverse activities, and widely

dispersed operations .

Specialized techniques and procedures are used to examine large

cases . Following an audit plan, the

examination is managed and directed by a case manager and conducted by a team of revenue

agents.

An audit team consists of two or

more revenue agents and specialist agents as needed, such as engineers or international and pension

trust examiners . During 1971, one

coordinated examination was conducted by an audit tea

m

consisting

of 55 revenue agents :nd 17 specialists. The taxpayer i a conglomerate made up of 122 entities,

located in 20 major cities and several foreign countries . This type of

examination has an impact on

many district offices ; therefore, the

focal point of program manage.

ment is the National Office .

As a byproduct of the Coordinated

Examination Program, the Service

has held numerous special meetings with various industries to discuss treatment of industry-wide

issues . These meetings are attended by industry representatives

and Treasury Department and Internal Revenue Service officials.

Audit Explore s

Local Noncompliance Areas

The Service looks for noncompfiance and its reasons and remedies .

Factors contributing to noncompliance include weaknesses in information-gathering methods ineffective sanctions, and insuffi~ient

enforcement resources . Program

areas involved such diverse enter.

prises and occupations as bonding

companies, credit card sa les, taxi .

Number of tax returns examined

[Fig.. . ~ in th.und,l

Total Field bihoo

Type of return 1970 1971 1970 197L , 1970 197 1

Grand total 2,010

Income tax, total 1,842

160

Ind Idual and fiduciary 1 672

Exempt organization 10

Es"taiandgifttax 36

Excise and employment to. 131

1,"G 623 566 1.386 1,080

IA87 484 429 1 .358 1,058

ISO 159 129 1 1

1 , 3" 315 289 1 .357 1,057

11L 1 0 it Q) (1)

41

32 36

4 4

117 107 100 24 is

Note .-The decline In number of returns examined is du,. in part t? 1~ :,do t11n I ul:

required to,=te allditS of more complex nonbusine

. return ., ~2 dl, on :

I

.

required to nated examinations of large corporate returns ; and (3) increases in

work in process.

I less than $500 .

cab fleets, redevelopment authorities, physicians, savings and loan

associations, cloor-to-cloor sales

companies and orchestra leaders,

In one example, the Service found

a correlation between the reporting

of secondary income by "moonlighting" college instructors and

issuing of income information reports (Forms W2 or 1099) by the

employing institution . Returns of

a group of instructors teaching

evening courses at various State

colleges were examined where

those i.n charge of the adult education program prepared and issued wage information returns.

The examination showed that, even

when there was no withholding,

virtually all instructors included

payments on their tax returns . By

contrast, the Service found widespread underreporting on returns

of a similar group of eveningschool instructors where wage information returns were not issued .

Results of

Examination Activity

Of the 1 .6 million returns examined in 1971, 1 million resulted

in recommended assessment of

additional tax . Dollar recommendations from Audit activity amounted

to $3 .4 billion .

The table at the top of the page

shows the number of returns examined in 1970 and 1971 by type of

tax.

Claims for Refund

While the tax consciousness of

most taxpayers revolved around

liabilities they have to pay, there is

a brighter side for many . Fre .

quently, taxpayers find they have

o41rpaid their tax, due to failure to

claim proper credit for taxes paid,

or from making improper adjustments to income, or failing to claim

all allowable deductions .

Since the number of claims increases with growth in the number

of returns filed, new methods are

necessary to provide prompt serv .

ice to taxpayers despite the in.

creased workload . In 1969, the

Service introduced a new Form

1040X to simplify the claim for refund filed by individual taxpayers .

Simplicity in preparation and proc .

essing has proved so successful

that in 1970 a Form 1120X was in .

troduced for corporate taxpayers .

These now forms and related proceclure~ expedite refunds by permitting most determinations to be

made without contact with the

taxpayer.

Enforcement Activities / 19

;I
Percent of Total Examination Percent of Total Returns

Time by Type of Tax Examined by type of Ta x

49 .6%-Individual and Fiduciary

32 .9%--Corporation

6 .2 %-Eatate

11 .4%-All OtherIncludes lift. exempt organizations, excise and

niployimmt fee.,.

Joint Committee Reviews

Large Overassessiment s

A report on all refunds and credits

on income, estate and gift taxes

over $100,000 must be sent to the

Joint Committee on Internal Revenue Taxation for review. During

1971, 790 cases involving over .

assessments of $518 .3 million

were reported to the Joint Committee, as compared with 638 cases

and $331 .2 million in overassessments in 1970 .

Exempt Organization

Program Strengthened

The exempt organization audit pro.

gram was reorganized and ex.

panded in 1970 . Emphasis was

placed on perfecting and tightening operations and procedures

while improving returns examination, determination letters, and

the Exempt Organization Master

File (EOMF) . An overriding consideration in all areas was meeting

the increased burden generated by

the Tax Reform Act of 1969 .

81 .8%-Individual and Fiduciary

2.0%-Estat e

7.9%-Corporration

8.3%-All otherPercent of Total Additional

Tax Recommended by

Type of Ta x

EM

no

am

MR

56 .8%-Corporation

4 .8%-All Other12 .1 %-Etata

26 .3 %-Individual and Fiduciary

-Includes gift, exempt organications, excise and - Includes gift, exempt organintions, excise and

employment tax returns . employment tax returns.

Steady Growth in Number of Exempt Organizations

on Master File / 1967-197 1

1967 1968 1969 1970 1971

I

Number of Tax Returns Examined

T.1.1 anIrdwidnil d

fiduciary

UrlmratiOrr Estate

and and gift

exemp t

Mignaretics.

Master File System

is Keystone

The Exempt Organization Master

File (EOMF) is the basic tool for

managing the Service's exempt organization program . It encompasses a constantly changing file

of returns data used to provide

historic and current information .

The EOMF was revised this year to

meet multiple provisions of the

Tax Reform Act and to meet the

Service's increased needs for exempt organization data . A recent

important innovation makes possible a microfilm record of the complete return and schedules of each

exempt organization in key districts for public inspeciton and district office use . A new returns register is being produced for research

and control, and a new report of

results of audit examinations is

being developed to aid in planning

and directing the audit program .

Excise a

nd

innPI .Yinient

Additional Tax and Penalties Recommende d

Tet.1 Ndi,ld..1

and

fide

cla n

Exempt Organization

Audit Activity Increased

Manpower devoted to exempt organization audits increased 41 .5

percent over 1970 and the number

of exempt organizations audited

increased 32 percent . A balance is

sought between maintaining broad

geographic coverage of all types of

exempt organizations and assuri.Ing,

by means of thorough audits, that

larger organizations are operating

within the scope of their exempt

status .

All field exempt organization

activity is centralized in 16 key

districts throughout the United

States . Each key district covers a

wide area and has at least one

group of specially trained agents

who conduct examinations of ex.

empt organizations and process applications for exemption . To provide more uniformity, more effective supervision, and better use of

manpower, certain aspects of the

Urporation Estate

.nad and gift as'.

in

.ri.mvitien

Excise

and

imppl .irnmint

key district concept ~rvere realigned

during the year and audit review

procedures strengthened .

To acquaint examiners with the new

exempt organizations provisions of

the Tax Reform Act of 1969, seminars were held in selected district

offices .

Private Foundation

Status Requirement s

The Tax Reform Act of 1969 required some exempt organizations

to notify the Service of their "private foundation status" for ruling

purposes . To help these organizations meet the requirement, questionnaires were mailed to 108,000

active entities listed in the EOMF .

Most responding organizations

have received rulings . The balance

of the responses have been forwarded to key districts for resolu .

tion after the issuance of final

regulations .

Enforcement Activities / 2 1

DE31LIM

20 / Annual Report / Chapter Three
Survey of Private

Tax-Exempt School s

On July 10, 1970, the Service announced that it could not justify

tax exemption or allow charitable

contributions to educational institutions having a racially

d I

scrimina.

tory admissions policy. A questionnaire requesting information on admissions policies was sent to

5,000 private educational institutions .

When a school does not establish

that it has a racially nondiscriminatory admissions policy, an outstanding ruling of exemption is

withdrawn . A school seeking to

clarify or change its policies and

procedures is given a reasonable

opportunity to do so to retain its

ruling of Federal tax exemption.

Airways Taxes Program

The Airport and Airway Revenue

Act of 1970 increases the tax on

a ir travel and imposed new taxes

on foreign departures, air freight,

aviation fuel, and use of civil aircraft .

An audit program was begun to

:ncourage voluntary compliance ,

nd to prevent the accumulation of

large tax liabilities which would be

difficult to recover from travelers

and shippers . To inform taxpayers

of their liability, the Service designed forms to secure informa.

tion compatible with data available

from the Federal Aviation Administration .

Art Panel Assists

in Evaluations .

A panel of 10 art experts, established in 1968, was expanded to

18 in 1971 . This panel assists the

Service in determining whether

realistic fair market value appraisals have been placed on donated

works of art and art objects valued

for estate tax purposes .

The panel reviewed 493 works of

art valued for tax purposes at

$14 .3 million. Recommendations

included a reduction in value

placed on art objects claimed as

contributions from $7 .5 million to

$4 .1 million ; and an increase in

value on art objects included in

estates from $6 .8 million to $8.6

Members of the Art Advisorv Panel meet

with Service officials to assist in deterrnimng the fair market value of -ks of

art . Pictured above are; seated left to

right, Karl Ruhe, IRS, Mrs . Esther W.

Robles, Kenneth Donahue, Dr. Richard

Brown ; standing left to right,

Thomas

P.

Hartnett, IRS, Eugene V. Thaw, Herold T.

Swartz, IRS, Assistant Commissioner

(Technical), Louis Goldenberg, Dr. Merrill

C. Rueppel), Dr. George H . Hamilton, and

Bartlett H. Hayes .

million . In the last 3 years,

changes in fair market value recommended by the panel totalled

$15 .5 million . A list of members

of the art panel appears on page

75 .

Advertising by Commercial

Tax Return Preparers

Taxpayers seeking assistance from

commercial tax return preparers

have increased sharply in recent

years . This trend has created problems because some firms offering

a tax return preparation service

have engaged in questionable advertising, sometimes distorting

facts . Questionable advertisements

included :

(1) implication that the firm could

represent taxpayers before the

cial relationship with the Service;

(3) presentation of misleading

figures on the number of selfprepared returns that err in favor

of the Government; and (4) exaggeration of normal refund statistics

to imply that the firm has a special

ability to get refunds .

The Service together with the Federal Trade Commission is considering how to deal with tax service advertising abuses .

Appeals System

Provided for Taxpayers

Taxpayer Has Opportunities For

Independent Administrative

Review

Proposed adjustments to reported

tax liabilities are not always resolved upon first examination . A

long-standing policy of the Service

is to provide administrative appeal

procedures to enable taxpayer to

settle cases promptly, without

litigation, on a fair and impartial

basis .

In the overwhelming majority of

cases a mutually agreeable solu .

tion is reached . The success of the

procedures is evidenced by the fact

that during the last 5 yeairs over

98 percent of all disputed cases

were closed without trial .

These procedures give the taxpayer two levels of appeal before

possible litigation . The first level

operates through 58 district conference staffs and the second

through 40 regional appellate division offices. If need arises, hearings at either level may be held at

other locations . Issues are considered relating to all internal revenue taxes except those on alcohol, tobacco, firearms, narcotics,

and wagering . Issues range from

the most elementary to the most

complex and involve proposed liabilities from a few dollars to millions of dollars .

Early Informal Hearing Provided

The appeal procedures stress informality and are designed to

achieve disposition of cgntested

cases with minimum inconvenience, expense, and delay to the

taxpayer. To that end, taxpayers

are encouraged to take advantage

of a district conference .

At district and appellate levels, a

conference is offered promptly

after the case is received . Convenience to the taxpayer as to date

and time is carefully considered . In

office audit cases the taxpayer has

an opportunity for an immediate

conference at the time of examinetion,

if he desires, and c ircum

stances permit . When the disputed

tax is less than $2,500, a written

protest is not required for a district conference. The same rule applies in the regional appellate

office, provided the taxpayer has

first attended a district conference .

Both offices are independent of the

examination branch and give imp rtial consideration to the issues .

The taxpayer may represent himself or be represented by counsel .

Unique Authority of

the Appellate Division

Regional appellate offices may dispose of cases by taking into account hazards of litigation, that is,

uncertainty as to outcome in the

event of trial .

This unique authority has been

granted to the appellate division as

part of the Service's program to

keep litigation at a minimum .

District conference case work-load

r-----

1, it .

F deses-peii-ding-Jury-_ --EF171- IF-1,04-- 1-12065

1 Cos" received 23.137 16.508 39 :645

L

Comlerences completed 22,519 16,497 39,026

-13,954 1l-_11_.G61 25,615-

Agreed as a percent of total 62 771 66

Casasp.nding-jdnello -8789- '1--3;9o5-

I

Other Avenues for

the Taxpaye r

If agreement is not reached at

either district or regional level, the

taxpayer can, in most cases, file an

appeal with the Tax Court . Even

though this is done, and the case

is docketed for trial, appellate procedures continue in an effort to

reach settlement . As an alternative

to trial in the Tax Court, the taxpayer can bring suit in the Court

of Claims or a United States district court . This requires payment

of the proposed tax deficiency,

followed by filing of a claim for

refund . Upon denial or a 6-month's

lapse from filing of the claim, suit

can be initiated .

In 1971 the appeals functions dis.

posed of 51,419 cases by agreement ; 965 cases were decided by

the Tax Court ; and 450 cases decided by the district courts and

Court of Claims .

About half of the cases closed by

agreement were at the district level

and half at the regional level . District conference staffs obtained

agreements on about two-thirds of

the cases they closed . District activity is set forth in the table below .

Appellate Receipts

and Disposals

Case receipts in appellate division

offices have been quite even over

the past 3 years-33,103, 33,099,

and 32,682 . Total disposals for

1971 were higher (2 .1 percent)

than those for 1970 . Inventory was

very close to that of the preceding

year.

irlea, - I I- 6fiI4_-1 -_ --- audit JL_ audit : I Total

22 / Annual Report /Chapter Three Enforcement Activities / 23
The major portion (about 80 percent) of the appellate workload

consists of cases that have not been

docketed with the Tax Court . In

1971, 79 percent of these cases

were closed by agreement with the

taxpayer . Agreement on cases of

this kind have averaged 81 percent

over the past 5 years .

Taxpayers filed petitions for hearings before the Tax Court in 8,299

cases in 1971, an increase of 1,331

over the prior year . For 1971, 80

percent of all docketed case disposals were closed by agreement

and 87 percent without trial .

The following table and chart shows

the processing of both nondocketed

and docketed cases in 1970 and

1971 . (For additional information

see tables 18 and 19, page 122 .)

Appeals-Methods of Disposal

Nondocketed Cases

Amad

Appellate Division processing of all cases for 197G-1971 (income, estate, gift,

excise

,

employment, and offers-in-compromiss )

Status

Pending July I

Received

Disposed of, total

33,099 32.682

31,981 32,65 9

By agreement 26,026 25,804

Unagreed (overassessments . claims, excise, employment .

and offer-in-compromise rejections) 1,249 1,474

By taxpayer default on statutory notice or dismissal by

Tax Court 1,457 1,602

By petition to the Tax Court 2 .303 2,014

Tried in the Tax Court 946 965

Pending June 30 33 .145 33,491

Revised.

Unpaid Taxes Increase

Most taxpayers pay the full amount

of tax reported due when filing tax

returns, however, there are those

who do not . Some taxpayers make

errors on their returns, while others

are found to owe money after a n

In Regional Appellate Division Offices

Defaulted a, Unagn,ed

fl.t.t.ry other than

notice PON.. to

ta, court

Cases Dxketed in Tax Court

Amad Di,.i..d Tried

or defaulted

ihii-iii., of -. .a

1970 197 1

32,027 . 33,468

audit is made . These circumstances

resulted in 2 .8 million delinquent

accounts in 1971, which is

197,000 or 8 percent more than

last year. Reflecting this increase,

the amount of delinquent tax involved rose $196 million, or 6 percent, to $3 .5 billion in 1971 . Part

In Department of Justice

on Refund Suits

Aimed Tried

Taxpayer Delinquent Account s

of the increase stemmed from

steady growth in population and in

taxable income~ while part was undoubtedly due to general economic

conditions .

Disposals Also Increase

In 1971, the Service disposed of

almost 2.9 million accounts

'

an in .

crease of 257,000 accounts or 10

percent over 1970. The dollar value

of these disposals rose to $3 - 6 bil .

lion, up $269 million front the prior

year .

Inventory Reduction Attained

For the first year since 1968 when

budgetary limitations were initially

imposed, the inventory of delin .

quent accounts declined . The

759,000 outstanding accounts at

Year-end represented a reduction

of 29,000 accounts, or 4 percent,

below 1970 . The $1 .9 billion value

of these accounts was $87 million

higher than the prior year's.

Taxpayer delinquent accounts

Hu .6.,

(thousends )

Status 1170 2971

Issued 2,624 2,821

Disposed . total 2,590 ; 2,847

By type of action :

Collected 2,139 2,265

Additional collection s

Other disposals 1 451 582

Pending June 30, total 788 759

Amount

(thousand dollars)

1970 1971

$3.314,045 $3,509,677

3,310,340 3 .S79,694

2,453 .372 ' 2,498,077

64,191 108,76 1

792,777 972,856

1 .812,265 1,899,804

'Includes disposals due to uncollectibility, erroneous and duplicate assessment .,

payment tracer and adjustment cases.

Integrated Data

Retrieval System to

Benefit Enforcement

The Integrated Data Retrieval System (IDRS), now being developed,

will offer definite advantages to

enforcement efforts . Originally

planned as a vehicle for providing

immediate availability of information needed to respond to taxpayer

requests concerning their accounts

or returns status, the system will

also be used as an added deterrent

to delinquency . This will be accomplished in several ways: (1)

having IDRS, rather than enforce.

ment personnel, monitor and follow-up delinquent accounts whose

collection is in a suspended status

for any number of reasons, such as

adjustments, court action, and

military deferment ; (2) entering

current information in the files at

service centers and district offices,

thereby crediting a payment to the

taxpayer's account on the day it is

received. This will also conserve

enforcement time now spent on

following up an account that has

already been satisfied ; (3) having

immediate accessibility of information on the status of a taxpayer's

account, thereby reducing differences to be resolved ; (4) providing

a whole spectrum of management

information of the nature and

characteristics of delinquent taxpayers never available under

manual operations. For a further

discussion of MRS see page 58 .

Reports to Detect

Delinquent

Filers Intensified

To sustain support of the nation's

taxpayers for the Government's

self-assessment tax system, fair

and equal treatment of every person having a tax filing obligation is

mandatory. Aided immeasurably

by the Service's automatic data

processing system, a broad range

of programs have been initiated to

detect major areas of filing noncompliance .

Assessments Reach

Record High

The rise in delinquent account

workload, coupled with limited

manpower resources did not per.

mit a gain in the number of delinquent returns secured. However,

the amount assessed on these returns reached the highest level in

history. The Service secured 735,-

000 delinquent returns valued at

$489.4 million compared to 738,-

000 returns valued at $370 million

last year. A total of 679,000 returns assessed at $427 .6 million

was secured through established

delinquent returns programs, the

balance came through the Serv .

ice's returns examination program .

Full Compliance

Check Emphasized

Enforcement personnel are trained

to make a full compliance check by

reviewing all possible returns due

24 / Annual Report / Chapter Three

Enforcement Activities / 25
whenever taxpayers are interviewed in apparent nonfiler situations . A self-employed individual,

who is delinquent for an income

tax return, will be chec ked for in .

come tax periods other than the

one for which the investigation was

issued . He will also be checked for

business tax returns if he employs

other people or for excise tax returns if that situation applies . Special attention is directed to educating and motivating the taxpayer to

meet his future tax responsibilities .

Master Files Offer .

Broad Base For Operations

A major portion of Delinquent Returns activity is directly related to

the three automatic data processing Master Files : The Business

Master File (BMF), Individual

Master File (IMF), and the Exempt

Organization Master File (EOMF) .

Each file has a unique routine,

tailored to meet variations in tax

regulations and filing require .

ments . During the year over half of

the potential nonfiler cases were

resolved through computer checks .

The BMF incorporates filing requirements for the majority of the

United States' business community. It is programmed to deal with

several classes of business taxes

and to issue a request to field

offices for an investigation covering one or more tax periods during

the year . This eliminates paperwork, clerical processing, and

multiple enforcement contacts,

since the computer is not pro.

grammed to issue another investigation request or accept investigative data which does not satisfy all

periods of delinquency .

The IMF covers Individual Income

Tax Returns and makes an annual

delinquency check to identify nonfilers .

The EOMF is in an early development stage and when fully operational will permit computers to issue delinquency letters to taxpayers any time during the year .

26 / Annual Report / Chapter Three

Anti-Poverty Coordination

Prevents Delinquency

The Service cooperated with Federal agencies involved in funding

small business under the recentantipoverty laws . While efforts are

directed toward rapid resolution

of taxpayer delinquencies, an equal

or greater effort is made to prevent

predictable difficulties that beset

the novice businessmen . Funding

agencies have been urged to give

attention to tax matters when

assisting struggling enterprises .

These efforts include: (1) supplying IRS-instructional material to

new antipoverty grantees; (2) requiring evidence that Federal tax

requirements have been complied

with before advancing additional

lunds to old accounts ; and (3)

checking to see that taxes are paid

when they make their periodic

audits of various grantees .

Liquor Law Enforcement

Continue s

at Reduced Level s

The Gun Control Act of 1968 again

caused the Service to divert investigator manpower from illicit

liquor to the firearms program to

meet expanded enforcement and

regulatory responsibilities. In

1971, only 30 .3 percent of the

Service's alcohol, tobacco, and firearms investigator force was used

for liquor law enforcement, compared to 76.8 percent prior to enactment of the strengthened gun

laws .

The chart below illustrates the shift

in investigator manpower within

the Alcohol, Tobacco and Firearms

Division. The substantial increase

in 1971 of the manpower utilized

on "other" programs resulted principally from extensive use of investigators on the Sky Marshal project .

Illicit distillery seizures for 1971

total 2,272, compared to 3,763

seized in 1970. Enactment of federal laws controlling manufacture

and interstate movement of explosives caused an additional

strain on manpower available to

police illicit liquor traffic resulting

in a gradual decline in seizures and

arrests over the past several years .

A similar decline in seizures of

mash and untaxpaid spirits is also

evident . A more detailed summary

of accomplishments in liquor law

enforcement is shown below .

Revenue GrowthAlcohol and Tobacco Taxes

Revenue from distilled spirits rose

t6$3 .5 billion for fiscal year 1971 .

The $1 .2 billion dollar increase

during the last 10 years, is just over

51 .9 percent of the 1961 figure .

Tobacco taxpayments over the last

10 years are up about 5 percent

These gains occurred even though'

basic tax rates have not been increased for over 10 years . Actually ,

Results of criminal action In alcohol and tobacco rage s

Action

Indictments and information

Dl .p=I .,tt. 1

Plea, guilty or nolotontandfirre

Convicted after trial

Acquitted

Nol-prossad or dismissed

- - Nuesw'.

.i gefs.dsmui

_1970 _

3262 054

3 :349 3.1269

2,389 2,166

412 612

193 107

345 284

Seizures and arrests for alcohol and tobacco violation s

Seiz~res :

Distilleries

Stills at distilleries

Non~taxpaicl distilled spirits

Ms.

Vehicles

Property (appraised value)

Arrests

Approximately 90% of illicit distill .

eries seized are in the Southeast

region . "Operation Dry-Up," a

program employing heavy concentrations of Federal officers in problem areas, is still in progress and

its success justifies continued

emphasis . It is estimated that

$100.8 million in additional revenue has accrued to the Federal Government since inception of the

program in 1963 . The three states

involved in the program have ex.

perienced substantial increases in

revenue .

Production of illegal aicohol is big busi .

ness in certain parts of the country .

Hidden stilis such as the one pictured

at the right, seized in Jefferson County,

Alabama, pose a formidable problem to

Service mestigators. This still (small by

comparison) when operated at full capac.

ity for a year, will Produce approximately

3,000 gallons of illegal whiskey .

number 3 .763

do 5 .228

gallons 86,384

do I ' 956 ' 170

numb., 1336

dollars 1,280 .130

i97 1,

2,272

3,32 7

78,878

1,387,986

82 5

1,071,1"

number 3.32i 3,222

the revenue base has been reduced

since manufactured tobacco products (snuff, smoking tobacco and

chewing tobacco) are no longer

taxable .

Taxable Cigarettes Removed

Until 1953 there was an annual increase in cigarettes subject to tax

for domestic consumption. Slight

decreases in 1953 and 1954 coincided with an American Cancer

Society report indicating a relationship between lung cancer and

cigarette smoking . Thereafter,

cigarettes for domestic consumption through 1963 increased at a

rate of about 3% per year . A decline in 1964, at the time of the report of the Surgeon General's Advisory Committee on Smoking and

Health was followed by a quick recovery lasting until 1968 when

significant antismoking campaigns

began to effect consumption of

cigarettes . Nevertheless, tax receipts from cigarettes have approached or exceeded $2 billion in

each year since 1962 .
Continued Increase in Volume

of Regulated Operation s

The Service is responsible for regulation of the alcohol and tobacco

industries to assure compliance

with various Federal requirements .

Controls are applied principally

through a system of permits and

bonds, reporting requirements, and

inspection programs .

Although the number of distilled

spirits plants remained fairly stable

during 1971, the volume of activities requiring compliance inspections increased . Alcohol and tobacco tax collections continued to rise

totaling $7 .0 billion in 1971 as

compared to $6 .8 billion in 1970 .

The following table reflects production volume for fiscal year 1971 .

payers subject to special (occupa .

tional) tax at two or more locations

can now file one special tax return

with the Service center serving the

district in which the principal place

of business is located .

Liberalized requirements and controls were introduced for users of

small amounts of specially denatured or tax-free spirits by providing for continuing (instead of

annually renewable) withdrawal

permits and by doubling annual

quantities which may be used

without a bond.

Alcoholic Beverage Advertising,

Labeling Trade Practices

Control of labeling, advertising,

and trade practices relating to alProduction by alcohol and tobacco industries, fiscal year 197 1

FiZineul distilled spirits

St wine

759-3 million tax gallons

112.0 million proof gallons

278.8 million gallong s

Elfervescontwines 23.6 million gallons

Vermouth and other

Net . .[ mes

Beer

39.9 million gallons

134.1 million barrels

Large cigars 6.9 billion

S-11 cigars 911.7 million

Cigarettes __585.1 billion

1 256.9 million gallons removed from bonded storage after determination of taxes due ;

517 .2 million gallons removed tax free; 1 .162 .4 million gallons in bonded storage stand of

year .

ATF revenue control manpower use

1970 1971

Riants, and permittees .su

.bject to IRS regulatory contro l

(excludes retail liquor dauslers):

Inspector men-years realized 806 931

On-site inspections completed 22, 717 22,673

Days of industry operation requiring on-premise s

supervision 143514 134.040

Permits Issued, amended and terminated 1; 21:685 24,471

Claims, offars-In-prormse and assessments re- 1~

iswederulprocons ad 39,743 39,246

Regulatory Changes Promote

Efficiency and/or Saving s

A decision was made to require

that the brewer be responsible for

testing and maintaining the accuracy and reliability of his meters.

Annual savings of approximately

$100,000 will result from this

decision .

The processing of low-volume tax

returns at service centers was ini .

tiated to effect economies . Taxcoholic beverages is prescribed in

the Federal Alcohol Administration

Act to protect the revenue as well

as consumers .

Distillers, blenders, and bottlers

of spirits, producers and blenders

of wine, and wholesalers and importers of all alcoholic beverages

operate under permits subject to

suspension or revocation for any

violation of Federal liquor laws .

Advertising for alcoholic beverages

must comply with statutory and

regulatory requirements and prohibitions similar to those governing

labeling . Enforcement is achieved

by examining advertising in news .

papers and magazines, trade publications and on radio and television . Radio and television are riot

generally used for advertising of

distilled spirits because such advertising is not acceptabe under

voluntary codes of the National

Association of Broadcasters and

the Distilled Spirits Institute. More

than 18,000 publications containing alcoholic beverage advertisements were examined during the

year. Also 278 radio programs

were reviewed . As a service to industry, comment is offered on acceptability of projected advertising

themes or campaigns voluntarily

submitted for examin tion . During

the year, 756 propos :d advertisements were commented upon and

303 conferences were held with industry members or their representatives .

Bottlers and importers of distilled

spirits, wines and malt beverages

are required to obtain certificates

of label approval (or certificates of

exemption from label approval for

intrastate bottling) prior to remov.

ing bottled goods from bottling

establishments or Customs CUStody. This fiscal year, 60,117

certificates of label approval were

issued covering all classes and

types of alcoholic beverages . The

review of labels submitted for ap .

proval continued at a high rate due

to the program of having bottlers

and importers submit, for reappro .

val, all labels in use covered by

certificates of label approval issued

prior to July 1, 1968 . Researching

and processing large volumes of

alcoholic beverage labels and certificates of approval are aided by

the use of microfilm.

Formulas and Labels Examined

Type

Formulas forNon .b.-rag.Food .. Fl .vorsand Medicinal Products

Formulas for Specially Denatured Articles

~abel requests for Alcoholic Toiletries, Medicines, Etc .

Water Pollution

and the Alcohol Industry

In cooperation with the Environ . mental Protection Agency, the Alcohol, Tobacco and Firearms Divi .

sion is developing guidelines for

discharging its responsibilities under the Water Quality Improvement

Act of 1970 . Manufacturers of dis .

tilled spirits, wine, beer, explosives

and users of denatured alcohol, will

be required to obtain certification

of compliance with water quality

standards established by states or

other agencies, prior to receiving

operating permits or licenses from

the Service .

Alcohol, Tobacco

and Firearms Laboratories

The National Office Laboratory and

three field laboratories continue to

provide scientific services in support of Internal Revenue Service

management decisions and poli.

cies. This year, 33,374 samples

were analyzed or examined compared to 27,531 in 1970 . The increase was largely due to growing

workloads in the area of criminal

enforcement .

Chemical Staff Activities

In 1971, the chemical laboratory

made a study of effectiveness of

authorized denaturants and found

that these materials, despite

changes in their manufacturing

processes, gave adequate protec .

tion to alcohol.

Discontinuance of television ci.ga.

rette advertising caused tobacco

manufacturers to focus greater

attention on little cigars. The same

types of tobacco leaf are sometimes

used to make both cigarettes and

little cigars . Since different tax

rates apply, a clear-cut criterion

for distinguishing between cigars

i970

1 .783

4043

9 :660

197 1

2,010

3897

8:286

and cigarettes is necessary, and the

laboratory is developing analytical

differentiation methods .

With the aim of expanding their

consumer markets, a n u mber of

breweries are developing flavored

malt beverages . This year the labo.

ratory played an important role in

insuring that the base material

used is actually beer and that

manufacturing methods do not de .

pa rt from traditional brewing

methods .

Forensic Staff Wor k

The laboratory staff examined approximately 11,000 physical evidence samples connected with

1,552 cases involving illicit liquor

conspiracies, firearms violations,

destructive devices, income tax

frauds, and other crimes . The num .

ber of cases processed by the

labor tory is sii times greater than

the Me load for fiscal year 1967 .

Although illicit spirits-type cases,

are increasing, much casework involves document examinations con .

nected with income tax violations

and analysis of residues from

bombs and other destructive de .

vices.

The work connected with document

examinations involves new techniques developed by the National

Office laboratory which make possible the dating of ballpoint fountain or fiber-tip pen inks .

Techniques developed by the laboratory staff for examination of

bomb residue to determine the type

of explosive used have been very

effective in aiding investigators in

eventual prosecution of bombers .

Physical evidence was examined

from more than 300 bomb cases

during 1971 and in morethan95%

of the cases it was D03Sible to

determine the type of explosive

used .

Tax Fraud Investigations

and the

Intelligence Division

The criminal prosecution of tax

fraud cases is required as a deterrent to tax evasion . Relatively few

cases are prosecuted--around 700

or 800 a year out of 75 or 80 million corporate and individual taxpayers . The Service's objective is

to get maximum deterrent value

from the few cases prosecuted .

Intelligence activities are divided

into two principal programs. The

General Program, concerns itself

with those taxpayers engaged in

legitimate business or professional

occupations . The Special Enforcement Program, concerns itself with

those taxpayers engaged in illicit

activities .

Identification of Noncompliance

An effective enforcement program

demands accurate, up-to-date in .

formation concerning the nature

and extent of noncompliance with

tax laws . Such information provides

a sound basis for selecting cases

for investigation having maximum

deterrent effect . Resources are allocated so that enforcement activi .

ties are concentrated on the most

significant and aggravated noncompliance situations. Enforce. ment actions generate sufficient

revenue to pay cost of detection of

noncompliance many times over .

Tax fraud investigations

fExclusi,s of segaring and coln-operated gaming device cases]

Typ e

Investigations completed

Prosecution recommended

Convictions obtained

Acquittal s

Investiga!ions in Process, June 30

11976 2971

7,981 7382

1,112 1 :368

5 1 8 775

26 55

7,2.04 7 .77 4

28 / Annual Report /Chapter Three 445-0700-72-3

Enforcement Activities /. 29
The following are examples of a

variety of court actions in 1971 resulting from criminal tax investigations by the Intelligence Division

in the General Program area .

A medical doctor was fined $5,000

and placed an 3 years' probation

after understating his earnings

by about $275,000 over a 4-year

period . He unsuccessfully contended that his current wealth

came from his seizure of at least

138 million Nazi Reichmarks from

a Bavarian bank during World War

11 which he converted to American

dollars.

Two officers of a plumbing and

heating company received a 1-year

suspended prison sentence and a

year's probation for failing to pay

income and other taxes withheld

from employees' wages and for

failing to file the required returns .

Three members of one family were

fined a total of $14,000 and were

placed on 1 year's probation for

evading the estate tax due on the

estate of their mother . The survivors withdrew funds from several

bank accounts held jointly with

their mother and failed to account

for the funds on the estate tax

return .

An optometrist who also served on

a city council was . sentenced to

serve 3 years in prison and his

wife, a dentist, was placed on 4

years' probation . Both were convicted of income tax evasion . The

presiding judge commented that it

was unbelievable that such welleducated people could enjoy income of $50,000 and pay no tax .

A grain trucker was sentenced to

serve a year in prison because of

his failure to file income tax returns for 3 years on a net income

of $668,000 . The taxpayer used

various aliases in buying and selling grain and victimized many of

those with whom he dealt through

theft and manipulation of grain

weighing devices .

A former clothing store owner was

fined $50,000 and placed on 2

years' probation for failing to file

income tax returns for 5 years . Unreported income for the period

amounting to nearly $200,000

consisted mainly of dividends on

stock and interest on bond investments .

A prominent attorney was sentenced to 6 months in prison for

evading over $30,000 in taxes .

Total additional taxes and penalties

approximate $400,000 . Evidence

was introduced in court to reveal

the taxpayer's implication in payments to purchase a judgeship for

a law partner and for diverting

funds to county commissioners to

influence zoning applications .

A real estate promoter was sentenced to 5 years' imprisonment

on charges of evading $600,000 in

corporate income taxes . He also

presented a fraudulent document

to a revenue agent in an attempt to

support a large corporate deduction. This same taxpayer was sentenced in 1965 to pay a fine of

$100 for failing to file individual

and corporate returns for 3 years .

A former philosophy professor was

sentenced to I year in prison for

supplying a false and fraudulent

Employee's Withholding Exemption Certificate to his employer.

The taxpayer was opposed to the

United States involvement in Viet .

nam . He asserted that 14 additional dependents claimed by him consist of "several million Vietnamese,

the peasants of South America and

the poor black and white of America .

A taxpayer who operated a truck

stop was sentenced to 3 years in

prison for failing to file Federal excise tax returns . He should have

filed and reported tax of $73,000

on sales of gasoline and diesel

fuel. It was disclosed that he

placed substantial assets in the

name of a relative and that he

claimed to have no funds with

which to pay the tax.

An attorney who was serving a

sentence of 30 months for income

tax evasion was also convicted and

sentenced to 3 additional years for

perjury. The latter actions took

place during his tax trial at which

he, acting as counsel

,

induced his

mother and father to comm it perjury. His parents were each fined

$500.

An Indiana gambler was sentenced

to serve 5 years in prison for filing

false wagering excise tax returns .

He omitted about $2 million in

wagers from his monthy returns

for an 11-month period .

A multimillionaire for mer cothing

manufacturer was sentenced for

evading nearly $500,000 'in corporate income taxes. At the time of

the evasion, he controlled 15 manufacturing companies.

Special Manpower

Commitments

The events of 1970-71 generated

special requirements not ordinarily

met by special agents. The Service

provided enforcement agents from

Intelligence, Alcohol, Tobacco and

Firearms Division, and the Inspection Service to serve as "Sky

Marshalls" on U .S . carrier international and selected domestic flights

in an effort to combat "skyjacking"

of commercial aircraft . The Service

personnel were provided until an

adequate permanent force was recruited and trained . The Service

provided instructional support for

the duration of the "Sky Marshall"

training program .

The Service also provided a substantial number of agents for protective detail assignments for heads

of foreign states and countries who

participated in the 25th Anniversary of the United Nations .

Referrals to

the Department of Justice

A total of 1,021 income and miscel.

laneous criminal cases, with prosecution recommendations involving

1,016 prospective defendants, was

forwarded to the Department of

Justice . Compared with the prior

year, this was an increase of 16

percent in the volume of referrals .

In 1971, indictments of such cases

were up 3 .4 percent .

In income, excise, and wagering tax

criminal cases, 491 defendants

pleaded guilty, 154 pleaded nolo

contenclere, 142 were convicted

after trial, 57 were acquitted, and

153 were dismissed.

A comparison of indictments and

court actions for the last 2 years

is shown at the right.

Cases Involving

Criminal Prosecution

Total additional taxes and penalties

of $179 million were involved in

cases received in the Chief Coun .

sel's Office with recommendations

of criminal prosecution . This was

$92 million more than the prior

year.

An analysis of the receipt and disposal of criminal cases in the Chief

Counsel's Office appears at the

right .

Additional detail on legal workload

involved in the prosec ution of

criminal cases by Service attorneys

during the past 2 years is provided

in the table at the right .

Results of criminal action In tax fraud cases

Number of defendant .

Action 1970 2971

- etmentsand = D,s l.di jnformations 924 956 posels, total 628 997

Plea guilty or note contender

C.n~icted after trial . 448 -645

1 73 142 Acquitted

Nol-prossed or dismissed 1 77 153,

30 57

Income .andmisceilaneouscases ,

Disposals Indictments and informations 891 . tota l 952

608 961

Plea. guilty or note contendere -43 63a

Convicted after trial 69 136

Acquitted 29 55

Nol-proaled .1 dismissed 67 132

~Nagerlng tax- onses, -

Indictments and Informations

Disposals, total 2033 364

Pi guilty or . .I . contenders

C-v 7

led after trial 4 1 6 Acquitted 1 1, 2

Nol7prosseq or dismissed 1 2; . 9

Idienfceinuddaenst,c5asbeescaduissemiosfsseedritoourstihilenefosislowing reasons : 11 because of death of principal

, and 89 because principal defendant had Pleaded guilty or had been convicted in a related case .

2 Includes income, estate . gift, and excise taxes otherthan wagering, alcohol, tobacco, and firearms taxes.

- Includes 491 pleas of guilty and 154 pleas of note contenders .

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

r-- stl -

L 1970 1971

2,073 2,206

L Re eived, total 1 .10_

With recommendations for pr~seciuon - 1264 With requests for moi . pit, etc. 66

L Disposed of, total I-967 2 .052

Prosecution not enirranted -is 79 Depart ant of Justice declined so

FptOpinions delivered

..--u"uqn.~- 623 AS759

38 46 All other .losings __j6O lJ_ _A2

0

I

referred Includes cases awaiting action in Department of Justice exclusive of wagering tax cases by Intelligence Division .

Tax and penalty and numberaftax years involved In criminal fraud casedisposals

[E.1hohiv af inufarlitZ ad ir-.smitei -1 .9 derice .-I

E:

1111I .Positie.

I

I

Total

Prosecutions

All other closings

IE::: 7 V~Y- "i~-- - I

I

E=2.P~21 F-2~9-53

F-2.073 2.509--IF 343,-35060-3~87[- 7V441951

L___!99J1 4" 1L .080,134 1 37,330,466

- inciuaes cases declined by Department of Justice .

Ill.-i"n-a-P*_I ~

30 / Annual Report / Chapter Three . Enforcement Activities / 31
Fraud Investigation

Training

Special Agents of the Service

undergo a comprehensive training

program . The training includes 7

weeks at Treasury Law Enforcement School which concentrates on

investigative techniques, a Basic

Income Tax Law Course for 5

weeks, and a Special Agent Basic

School which emphasizes Service

policies, investigative techniques,

law, rules of evidence and Federal

Court procedures pertaining to

criminal tax law violations . During

1971, 313 special agents received

training at the Treasu ry Law En.

forcement School; 180 special

agents attended the Basic Income

Tax Law Course; 297 special agents

completed their formal training at

11 Special Agents Basic Schools .

The Service also offered a program

whereby State and local law-enforcement personnel attended the

Special Agents Basic School. Forty.

six law enforcement agents, representing 24 states, the Commonwealth of Puerto Rico, and Guam

have attended to date. This training has enabled officers to return

to their enforcement agencies

better equipped for conducting financial investigations, and combating organized crime.

Enforcement attorneys from the Office of Chief Counsel and tax agents

from Singapore and Korea participated in the Special Agents Basic

School. Special sessions were also

conducted for tax officials from

Brazil and Lebanon.

The Service developed and conducted a 3-week school in Investigative Techniques for Income Tax

Bureau Agents, in San Juan, Puerto

Rico . This training was geared to

increasing agents understanding

of basic criminal enforcement investigative techniques as they relate to income tax evasion .

The Intelligence Division developed

and conducted a 4-week 'Financial

Investigatory Techniques Workshop" at the request of the Governor of Michigan . The course was

attended by Michigan State and

local police officials and Revenue

Department Tax Agents.

Workflow in the Service

and the Courts

The major portion of the work of the

Service results directly from the

millions of returns filed each year .

The time needed to process a return through different activities depends on the complexity of the

items and issues involved . Many

returns are processed to ultimate

disposition within a short period

while others require work by different divisions of the Service and are

not closed during the year of filing .

The unit of measurement at the

audit level is on a return basis . In

the appellate and intelligence divisions as well as in the courts, the

work unit is the case . A case may

involve more than one return and

more than one taxpayer. The tables

on the next pages reflect comparative data on actions completed by

the Service during 1970 and 197 1 .

The duties of Special Agents am not limited to gathering evidence. Courtroom

testimony is often required in completing

atrial c se . The photo below depicts a mock

used in Special Agent training

sessions.

Workflow in the Internal Revenue Service and the courts,

fiscal years 1970 and 1971

Returns

1970 19171

Tax returns filed, total 113 .078,185 111,4",930

Individual income 78 .369.859 76,619,563

Corporation income 1 .725.760 1.820,556 Estate and gift

Employment 2

279,563 314.913

993,578 21,889,343

Excise 1 597 79 1: 9 2400704

Other income

9

. 129:560 9 :401 :85 2

INCOME, ESTATE, AND GIFT TAXES

Number of returns examined (including forms 99D) 1 -1,878,870 1.529,454

Returns with adjustments proposed by audit divisions 1,199,568 1,006,325

Disposed of by audit divisions :

Agreed. paid . or defaulted 1.146346 956,311

Transferred to appellate 48

Other 4

:876 46119

.3 46 3 :89 5

Civil cases

Total received in appellate divisio n

Disposed Of by appellate divisions : Agreed, paid. or

Courts defaulte of d

original jurisdiction :

Tax court :

Case $

24.235 22,061

21 .060 20,277

Total petitioned to Tax Court 6,969 , 8,299

Dismissed 58 567 Settled by stipulation 5,343 6,187 Settled by Tax Court. decision 763 ow

Decided by Tax Court, but appealed ~319 338

District courts and Court of Claims :

Total flied in district courbsiand Court of Claims 1 .189 1.177

Settled in district courts and Court of Claims 727 647

Decided by district courts and Court of Claims 367 4SO

Court of Appeals :

Settled by courts of appeals decision

Favorable to Government

Favorable to taxpaye m

Mail

!tie d

Decided

by

courts of appeals but reviewed by

'Supreme Court

Supreme Court :SetUed by Supreme Court decision

Fraud cases

Rieceived for full-scale investigation in intelligence

divisions

Disposed of by intelligence divisions :

Pmse-t!.n recommended

Prosecution not recommende d

Disposed of by Office of Chief Counsel :

Prosecution not warranted . including cases de .

.lined by the Department of Justice

Prosecution s

.I Includes :xc se tax cases.

Partially stimated .

331 355

241 237

54 93

36 23

12 4

12 4

2 .381 2,432

1,067 1,379

1 .120 1, IL42

146 127

623 7590

Results from

Direct Enforcement

IMI

Fm

I- Taxpayer Delinquent math

E.-Iii-11- d.1iiiii-I, return, V.Hfi.ti. .

-.ta iiectued

aill.d.il

Enforcement Activities / 33

I
i

Additional Taxes

from Direct Enforcement

A majority of taxpayers file tax returns and pay their required liabilities with no enforcement activity

required . Compliance activities are

necessary to achieve a balanced enforcement program. The following

table shows comparative data on

direct enforcem ent activities for

the pa st 2 years, and amounts of

revenue at each level of the tax

system .

Gross tax, penalties and Interest resulting from direct enforcement

[in thousands of dollars]

1-970 ~1?71

Additional tax, penalties, and interest assessed . total ir ~705

Fro . examimation of tax returns,-total ~17

Income tax, total

Corporati n 1.211

Individual and fiduciary

,

:~317 "7'47;250

Estill and gift lax 307.878 .210

Empl:;ment bra (including withheld,Income tax) 42,918 62,SDS

Excise tax 2 321 -"5

F- mathematical verification of income tax retums 506 .962 313,052

Fr

.

. verification of estimated tax payments claimed 624 .SM SM141

From ~ieqnqfient returns sec?ri!d.-"I- 371~.111 489,359

-6idiiir-icic~lle-c~iondivision-.'-

Elydist,ict

as -

udit divisions 58,940 L 6i~7i

cf .irns-disaflowed, total_:j51

.Pelinfl Itexes coJIecteq .,1totoL_ 2,517.W DII

Amounts of revenue involved at each level of the tax system

fiscal years 1970 and 2971

(Millions of dollars)

297b

Internal ~rnu. ~Ilcctiorns. total I_ i95.722 191;647

Individual income tax", total

Withholding 416 76

-10-0-752

0 :77, :i9O

than, 26' 236 24,26

2

C.rpomuon income taxes 35,037 30,320

Estate and gift taxes

3 .680 3.7"

Employment taxes 37449 39918

_Excilse!arxa1__ E_ 15:904 16:872

-- M60A~CCS_TATC-AN15- 61 FTTAXES__

ITS"_

Addiltional tax and parnattles, in cases, disposed ofsn audit, i . .; by argreensfunt Payment, or defaul t

Addii If'onat tax and penalties; in "sea disposed of in appellate divisions by agreement, paymemi, or default

Additional tax and perraltiles, determined by settlement in

Tara Court

Additlonarf tax and pranatiffies determined by Tax Court',

decia,lons:

1,366 1 1,499

328 349

105 '1 10

2

Dismissed3 22

Decisions on marrits 2322

Additionarl tax and pam"ttles; In causes decided by Supnamo!~ Court and counts of

Armaufftnefunded lottaxpostrensausa resultof opp"as 10 refund =Its

Deficiencies and bernattles in mass disposed of In braill .

fience divislons-_

9

S7

lanseec-, recommended 84 furdraecfslldn~ssotwarra affect 232

end canses; d-limed byD

..]

L

plortnaduat of Junifficus

I Includes excise taxes . , Revised.

34/ Annual Report/ Chapter Three

Organized

Crime Drive

and Firearms

Activities

I........ .. ............ I _- :........ . **.......... 1*11"1 .1 i

~i ,
Organized Crime

and Strike Forces

More than half the law enforcement

manpower working at the Federal

level on the Organized Crime Drive

is supplied by the Service .

The Government's initial plan to

combat organized crime has been

intensified to concentrate on illegal

sources of income, such as: gambling, loan sharking, narcotics,

prostitution, and other forms of

vice . The primary efforts are concentrated in 18 Strike Forces strategically located throughout the

country . The Strike Force concept

melds the energies and expertise of

several Federal law enforcement

authorities under direction of the

Department of Justice . Significant

results have been obtained in several major crime centers across the

nation .

Strike Force operations in Newark,

New Jersey, illustrate the effectiveness of the concept . A Strike Force

was established in that city in 1969

to eliminate a vicious organized

crime situation which permeated a

major portion of the state .

The team discovered large scale

gambling and shylocking operations coupled with organized hijacking and other types of thefts .

Labor unions were infiltrated or

controlled by organized crime and

the corruption of public officials

was a principal means in achieving

organized crime's ends . Among

those indicted for income tax evasion as a result of the investigations were:

2 Mayors

4 City Councilme n

2 Former City Councilmen

I Judge

I Corporation Counsel

3 Public Official s

2 Construction Contractors

8 Racketeers

Ten other cases have been completed with recommendations for

criminal prosecution, and 153 in .

vestigations and 271 audit exami .

nations are pending.

The Newark Strike Force was also

responsible for obtaining indict.

ments of 15 defendants on 64

counts for extortion and conspir.

acy . Those tried, convicted or

sentenced are :

Hugh J . Addonizio, Former Mayor,

Newark, sentenced to 10 years confinement and a $10,,000 fine .

Joseph Biancone, syndicate enforcer, sentenced to 10 years confinement and a $25,000 fine.

Ralph Vicaro, syndicate enforcer,

sentenced to 12 years confinement

and a $10,000 fine .

Anthony La Morte, Director Utili .

ties Authority, Newark

'

senienced

to 10 years confinement and a

$10,000 fine .

Philip Gordon, Corporate Counsel

for the City of Newark, was con .

victed but sentence has been

postponed .

The incarceration of the above and

their removal from positions of

power in local government not only

will serve to improve local government in Newark, but also should

deter others from engaging in

nefarious activities in other areas .

The Service's role in the New

Orleans Strike Force includes an

attack on flow of illicit money to

and from organized criminal activ .

ity and prosecution or immobilization of those involved . The Service

cooperated closely with the FBI in

seizure of over 3,300 gamblingtype pinball machines and approxi.

mately 1,000 slot machines in

Louisiana and Mississippi . This

project substantially suppressed an

important source of revenue to

organized crime.

The Service also assisted the FBI

in conducting interstate gambling

raids in other areas of the country

producing evidence of probable income tax violations . Records obtained indicated the involvement of

principal racket figures .

Due to recent increases in narcotics

trafficking, the President directed

all Federal law enforcement agencies to cooperate in a program to

combat traffickers and suppliers.

The Treasury Department appointed a special task force to

develop this program . The Intelligence and the Audit Divisions are

now in the process of expanding

their activity in this area . Efforts

will be directed against middle.and

upper echelon distributors, wholesalers, and financiers involved 'in

narcotics traffic for possible civil or c

riminal violations of the Internal

Revenue Code.

Recent activity in the narcotics area

included a raid in Chicago, Illinois,

carried out by agents of the Service

and the Federal Bureau of Narcotics

and Dangerous Drugs . The raid

resulted in 18 arrests for narcotics

violations . $82,000 was seized and

evidence obtained to support

charges against four racketeers for

violations of the Gun Control Act.

Related civil assessments enabled

the government to apply the

$82,000 to the defendants' tax

liabilities.

Similar raids were made in Detroit

where $453,700 was seized and

applied to outstanding tax liabiliti.

as . The coordinated activities of

the two agencies resulted in arrests

of significant narcotic dealers and

separated them from their capital .

Similar techniques have been used

in other metropolitan areas.

The Service's increased interest in

narcotics operations has also resulted in successful prosecutions

even when operators have insulated themselves to such a degree

that actual narcotics transactions

could not be detected . As an example Guido (The Bull) Penosi previousy convicted of narcotics violations, was convicted and sentenced

to serve 45 months in jail for income tax evasion . The investigation

leading to his conviction was due to

his lavish mode of living while having no visible means of support .

Through the Treasury Department's

membership in Interpol (international Police) the Service recently

extended its surveillance activities

with significant results to several

foreign countries . When it was

learned that three prominent racketeers were to travel abroad to meet

with one of the most powerful

racketeers in organized crime, sur.

veillance crews were set up in several countries . The meeting was

prevented and valuable intelligence

as to the racketeers activities was

obtained .

Gathering data on racketeer infiltration of legitimate business is a

continuous operation . The Service

has information concerning ap.

proximately 2,000 individuals or

entities considered major racketeers. About 85% of the racketeers are engaged in legitimate

business activities covering a broad

spectrum of occupations. An analysis of Service data reveals that

racketeers are engaged in the following legitimate businesses :

Number Types of Business

217 Restaurants, bars, and

taverns

186 Real estate and

insurance

116 Legalized gambling

(casinos and racetracks)

86 Finance (banking,

savings and loans,

stock brokers)

82 Professions (attorneys,

CPA's, doctors )

77 Entertainment and

recreation

71 Construction

68 Hotels and motels

64 Manufacturing

62 Food sale s

56 Automobile sales and

servic e

52 Trucking and trans .

portation

51 Government employ

ment (Federal, State*

and local)

50 Liquor sale s

Foreign

Financial Transactions

Use of foreign financial institutions

for tax evasion has been the subject of continuous study since

1957.

Some of the schemes and practices uncovered include:

1 . Sham Foreign Corporations.-

Corporations are organized by U .S .

taxpayers in foreign countries for

under-reporting profits on goods

and services acquired or sold

abroad . Funds so accumulated are

usually held on deposit in the foreign countries .

2. Conspiracies.-Taxpayers arrange for their foreign customers

or suppliers to prepare false commercial documents overstating

amounts received from the U .S.

taxpayer or understating amounts

paid to them . Funds placed in the

hands of foreign conspirators as a

result of these falsifications are deposited by the foreign conspirators

with foreign banks to the credit of

the U .S . taxpayers .

3 . Racketeer Money.-Flow of

funds between racketeers and foreign banks cannot be determ ined in

most instances due to foreign bank

secrecy laws . Many such transfers

of funds are categorized as loans

or repayments of loans on records

available in the U .S., but other evidence available fails to support the

credibility of the recoi~ds . 16 one

very large case, involving a multimillionaire oilman, gambler and associate of racketeers, amounts

shown as owed to a foreign bank

and interest payments allegedly

made to the bank exceed the total

amount shown in published financial statements of the bank as

loans receivable and interest

income .

4. Evasion of Tax PaymentsTaxpayers faced with the prospect

of enforced collection action of

substantial amounts of additional

tax have converted assets to cash

and transferred funds to foreign

banks . Later the funds are reinvested in the United States through

employment of nominees who act

as financial representatives for a

fee .

5. Transactions in Securities .-By

opening accounts with foreign

banks and financial institutions,

taxpayers are able to buy and sell

on the U.S . stock markets without

disclosing their interest in or income from the transaction.

6. Fictitious Foreign Tax Cred .

iis .-Taxpayers have taken credit

on U .S. tax returns for foreign

taxes which were never paid .

Information gathered from a recent

study was the basis for testimony

given by Treasury officials before

the Congressional Committees

which sponsored Public Law 91-

508 . The law, when fully imple .

mented, will provide a basis for requiring the financial community to

maintain records which will help

investigators detect and document

foreign financial transactions .

Interesting Cases

A notorious member of one of New

York's organized crime families

was sentenced to 6 months in

prison for failure to file an income

tax return for 1962 . Investigation

disclosed an attempt to conceal his

transactions and investments in a

legitimate business through fictitious names and use of nominees .

He acquired stock in the company

in a fictitious name and later by

threats and assault forced the

president of the organization to buy

back the stock at a price substantially above the market value.

Louis A . Ruggirello, identified in

court as one of Michigan's most

notorious gambling racketeers was

sentenced to 5 years in prison and

fined $15,000 for attempting to

evade income taxes for the years

1963 through 1965. During the

trial, the Government presented

128 witnesses and 762 exhibits .

Members of the jury informed the

U .S . Attorney they were impressed

with the clear, precise and impartial testimony of the Service agent .

They felt the turning point of the

trial was the professional presenta.

tion by the document expert from

the U .S . Treasury Department.

William J . Hussey, Brooklyn, New

York, former Chief Investigator for

the New York Telephone Company

was fined $4,000 and placed an

11

36 / Annual Report /

Chapter Four Organized Crime Drive and Firearms Activities / 37
I

probation for 2 years for evasion of

his income taxes for the years 1959

through 1962 . The additional income

I

was attributed to cash Hus .

sey received for leaking information to racketeers.

Lillian Pasco Failford (Belt) Phoenix, Arizona, was sentenc 'de to 4

years in prison for evasion of income tax for 1963 and for aiding

and abetting interstate transpor .

tation in furtherance of prostitution . Before her move to Phoenix

in 1962, she operated a brothel in

Ohio. She was absorbed into the

Phoenix social set within months

after her arrival, and parties given

in her lavish $150,000 home were

covered in the society pages of the

local newspaper .

Special Agents assisted in the investigation of perhaps the largest

"juice" loan operation (shylocking)

in the United States . Eleven mem .

bers of this ring received prison

sentences ranging from 3 to 15

years and were immediately remanded to the custody of the Attorney General for violations of the

Truth in Lending Law .

J

udge Edwin

A . Robson, in imposing a sentence

of 15 years on Steve Annoreno .

commented that he was the leader

of one of the worst crime situations

in large cities in America today . He

said that evidence was unmistak .

ably clearthat interest lpayments of

5 to 10 percent a week were extracted from victims who feared

beatings if they failed to pay.

Joseph W . Harper of Pittsburgh,

Pennsylvania, was sentenced to

serve 1 year in prison on each of

five counts for failing to file income

tax returns for the years 1962

through 1966 with sentences to,

run concurrently . Harper has a

varied criminal record including

a conviction for violations of the

Federal narcotics laws and two con .

victions for violations of state lot.

tery laws . Other arrests include

larceny, illegal sale of liquor without a license, and a Federal wagering tax violation.

Alfred George Felice, characterized

by a Miami newspaper reporter as

a major Miami hoodlum, was Santenced to serve 2 years for attempting to evade income tax for the

years 1963 through 1968 . Felice

is a convicted narcotics trafficker .

Alcohol, Tobacco and

Firearms Strike Force

Participation Stepped-up

The Alcohol, Tobacco and Firearms

D ivision participates in

18

Organized Crime Strike Forces now

operating in major crime centers

across the nation.

A common practice among Strike

Force participating agencies is exchange of information and assistance . In an investigation in Phila .

delphia a Service undercover agent

purchased a number of stolen

$100,000 treasury bills, which assisted another agency in making an

arrest and recovering $400,000 in

treasury bills .

In Chicago, FBI agents arrested an

organized crime subject in his

home and observed several firearms . The information was reported

to the Service and the subject's

premises were searched, resulting

in 33 firearms seized . Upon arraignment he pleaded guilty to the

violation and was sentenced to 2

years in prison .

A reputed "Boss" of Organized

Crime in Florida, entered a plea of

guilty on October 2, 1970, to an

obstruction of justice charge and

was given a I year suspended sentence and placed on I year

probation.

on October 11, 1970 the Service

served a Federal search warrant at

the residence of a well-known West

Coast bookmaker and loanshark

and seized five firearms . He was

found guilty on two counts and sentenced to 6 months in prison, 5

years probation, and fined $1,000 .

Results Achieved Under

the Firearms Progra m

In 1971, the Service spent 620

investigator man-years on firearms

work. This is a decrease of 7

man-years from 1970 . Firearms

investigations produced 2,785

criminal cases, arrests of 2,223 violators and the seizure of 7,995 firearms . These figures compared with

2,975 criminal cases, 1,957 vi olators arrested, and 30,307 firearms

seized in 1970 . In the area of regulatory firearms control, investigation of the activities of 3,772 licensed gun dealers were made in

1971 . These investigations found

1,964 purchasers of firearms with

crim.nal records, and 370 who had

used fictitious names or furnished

other false information in purchasing firearms . More detail on accomplishments under the Firearms

Program are set forth in the table

on the following page .

Firearms

Licenses and Permits

The Service processes and issues

ap proximately 150,000 firearms

dealer licenses each year . The licenses are renewed annually and

periodic investigations are made of

dealers' records, operations and

premises. In 1971, Service investigators made 20,088 license application investigations, and 23,684

compliance investigations . Under

the import provision of the Gun

Control Act, 26,658 permits to im_

port 964,122 guns were submitted

for review. This compares with

24,360 permits involving 1,()54,-

282 firearms processed in 1970.

The Gun Control Act at Work

The effectiveness of the Federal

firearms laws in bringing criminals

to justice is best illustrated by actual cases . A few examples follow :

In Connecticut, a Federal indictment was returned against 10 men

all involved in organized crime in

Hartford and New Haven, for violation of the National Firearms Act

in the unlawful transfer, receipt

and possession of four machine

guns . Some of the guns had been

used in several bank robberies,

and one had been used in a 1968

gang slaying .

In New York, a man and woman

were arrested at Kennedy Airport

for allegedly attempting to hijack

Results of criminal action in firearms case s

Action

I ndictments and information

Mum

,

bar all deiendant s

1970

1,309

824

2971

1,906

1,69 1

784

372 114

42 1

Plea quily or polo contendere 433

Convicte after trial I "

Acquitted 57 N .I .prossad or dismissed 190

Seizures and arrests for firearms violation s

no

Seizures :

Fi-nns

fli.st-etiv . devices

Vehicles

Property (appraised value)

Arneiit~_ _

-included seizure of firearms factory.

1970

number

do 4'30307 :372

do 294

dollar.

pUrpber 1,9!, 7

an overseas aircraft. Both were

armed . Investigation revealed that

one ofthe guns was purchased by

a Philadelphia resident from a

Virginia gun dealer . New York city

police raided an apartment in

Brooklyn and seized 41 rifles and

shotguns, 16 handguns, a 15-

pound keg of gun powder, and

radical pamphlets . Service agents

later determined that some of these

guns had been purchased by the

same Philadelphia resident connected with the airport incident,

who was arrested for violation of

the Gun Control Act.

An undercover investigator arranged to purchase firearms from a

man alleged to be the largest

"fence" in the Los Angeles area .

The man arrived at the delivery

point driving a camper truck. He

was arrested, and his truck con .

taining 26 firearms, was seized . A

search of the man's residence uncovered more than $500,000 in

stolen merchandise.

Bombs and Explosive s

Title II of the Gun Control Act of

1968 amended the National Firearms Act to classify bombs as firearms, and as such, they must be

registered . The Service developed

one of the world's most extensive

libraries on explosive materials,

197 1

6 ' 910

1,085

344

C 113 2 7

and has pioneered many techniques

used to examine and identify minute particles of debris from sites

of bombings and explosions .

Some significant cases investigated

by the Service involving use of explosives follow:

In Anaheim, California, a bomb exploded at 10 :30 a.m. on the roof of

a high school . Two hours later, another bomb exploded in another

Anaheim high school, injuring a

student . One week later

'

hree

juveniles and one adult were ar"

rested and charged in connect ion

with the bombings .

In February 1971, a Service investigator working undercover purchased 42 sticks of dynamite from

a convicted felon in Detroit, Michigan . When a Federal search warrant was executed at the felon's

home, 81 sticks of dynamite two

pistols, a homemade silencer: two

shotguns and over 300 rounds of

ammunition were seized .

Two men were arrested by Service

investigators for the bombing of a

car in a Falls Church, Virginia,

police parking lot. Investigation

and laboratory analysis disclosed

explosive powder in the automobile

owned by one of the men arrested

as well as his fingerprints on the

paper bag used to carry the bomb .

Training in Explosives

for Investigators

Assignment of jurisdictional responsibility for Title XI of the Omnibus Crime Control Act of 1970 to

the Servicecreated newtrainingobligations. 1,350 Alcohol, Tobacco

and Firearms investigators were

given general training in the explosives field . An intensified course of

instruction directing attention to

specific techniques peculiar to investigation of bombing scenes was

developed, and will be presented to

130 specially selected ATF investigators who will form the nucleus of

special squads to be stationed

across the nation . Training will be

conducted at El Paso, Texas, and

the White Sands Missile Range in

New Mexico.

A substantial amount of technical

training assistance to state and

local law enforcement bodies

throughout the nation is provided

under provisions of the 1968 Gun

Control Act .

Training programs cover such technical subjects as :

1 . Raids, Searches, and Seizures

2 . Surveillance of Premises, Vehicles and Person s

3 . Undercover Techniques

4. Interrogation

5 . Development of Informers and

Evaluation of Informatio n

6. Explosives and Firearm s

Assistance to Other

Law Enforcement Bodies

Tracing firearms is an important

feature of the state assistance aspect of the Gun Control Act. A Service representative visited major

firearms manufacturers in Europe

to establish more effective lines of

communication, and obtain unpublished firearms identification

data and records. Existing communications systems were augmented by a worldwide Telex System to provide instant links with

firearms makers in 14 countries .

During 1971, 873 requests for assistance in tracing foreign-made

guns were received from federal,

state, and local law enforcement

officers .

38 / Annual Report /

Chapter Four Organized Crime Drive and Firearms Activities / 39
....................

I chgpbT FfIw@

I
International

Business Growth and

Tax Administration

The immense growth in reciprocal

U .S .-foreign commerce, investment, and flow of citizens abroad

continued in 1971 . Receipts of income from U .S. sources by foreign

investors rose from $714.5 million

in 1964 to $1 .27 billion in 1969,

an increase of 78 percent. The

number of foreign corporations

controlled by U .S . shareholders

increased from approximately

16,000 in 1963 to almost 30,000

in 1970, reflecting a growth rate of

more than 85 percent . Similar increases in number of U .S . taxpayers living abroad and amount of

tax collections by the Service's Office of International Operations are

graphically shown in the charts

on the following page .

The boom in foreign business led

to development of trained international specialists in various

branches of the Service . Their assignment includes the usual activities involved in assessment and

collection of revenue, in areas presenting unique and complex problems . Service international specialists strive to insure that taxpayers

engaged in international business

and investment are protected from

inequitable and und uly burdensome taxation, both United States

and foreign .

42 If Annual Report / Chapter Five

Foreign IRS Post s

The aim of the Service is eventually to perform comparable servIces and functions for the large

body of U .S .

taxpayers abroad as

it does for taxpayers in the United

States . To this end it has established foreign posts in the following cities : Bonn, London, Manila,

Mexico City, Ottawa, Paris, Rome,

Saigon (temporary), Sao Paulo,

Tokyo .

These posts provide the principal

link between individual taxpayers

and U .S . business entities abroad

and our tax programs at home.

Subject to agreements with foreign

countries, staffs of these foreign

posts advise and assist American

taxpayers abroad with their U .S .

tax problems . They conduct audits,

hold conferences, collect taxes,

gather information, hold discussions with foreign officials on exchanges of information and perform other duties under our

system .

Present staffing of foreign posts is

critically short of actual needs . For

example, the post in Rome, which

has jurisdictlonal responsibility

over 14 countries located on three

continents, is staffed with only two

technical employees. Further expansion in the number of foreign

posts and personnel assigned to

them is a primary objective in

realizing the Service's long-range

overseas mission . As an interim

mea su re, the Service is completing

arrangements to detail additional

technical personnel from Washington for medium length assignments.

The Revenue Service Representatives pictured above serve tours of duty at U.S.

Embassies abroad . They meet periodically

in Washington for a series of seminars

to keep informed of recent tax developments. Seated fourth, fifth, and sixth

from the left, respectively, are 010 Assistant Director, Joseph G. McGowmn, Assistant Commissioner (Compliance), Donald

W. Bacon, and 010 Director, C . 1 . Fox.

Approximately every 2 years the

Revenue Service Representative

(RSR) in charge of each foreign

post returns to headquarters in

Washington for a week of consultation and discussion . This time is

devoted to a comprehensive survey of developments in the overseas program and an exchange of

ideas between the RSR's and the

headquarters staff . From these

meetings evolve new procedures to

improve the overseas operation .

The most recent RSR conference

was held during the week of

June 21-25, 1971 .

The Service in Saigon

In February 1970, the Service assigned three technical representatives to conduct examinations and

investigations of black market currency activities in Viet-Nam and

other countries in Southeast Asia .

It was anticipated that the situation

could be brought under control

within 18 months . However, experience proved additional technical

representatives and more time were

needed. The Service now has five

technical representatives in Saigon

and the life of the post has been

extended to August 1972 .

Steep Rise in Total

Tax Collections by Office

of International Operation s

1600

1400

1200

1000

IIE

600

400

200

1961 1963 1965 1967 1969 197 1

Overseas Taxpayer Assistance

Over the past 18 years the Service

has conducted a worldwide tax assistance program .

This year nine revenue agents and

nine tax auditors visited 99 cities

in 50 countries to help some

31,000 taxpayers file their U .S. tax

returns .

In an effort to broaden the base of

its overseas tax assistance program, the Service held 196 income

tax seminars for nearly 6,000 taxpayers in 86 foreign cities in 1971 .

This year a military income tax

training program was attended by

850 servicemen at military installations in Europe, the Far East and

the Canal Zone. Military authorities

estimate that more than two-thirds

of our military forces abroad benefit by this program .

Continuing Upswing in

Returns Filed by

U .S . Civilians Living Abroa d

240

230

220

21 0

200

19 0

18 0

170

160

1965 1966 1967 1968 1969 197 0

~ Includes only that returns filed with the

Office of Inte-tional 'Operations. It Is all t d

that a many more taturns am filed In the 0=

offices by other tapey. . $1,ing abroad .

United State s

Now Includes Continental

Shelf Area s

Prior to enactment of Section 638

of the Internal Revenue Code, the

right of the United States to exercise tax jurisdiction over income derived from exploration or exploitation of natural resources in the area

of the U .S . continental shelf was

not explicit . The new law defines

the term "United States" as including the sea bed and subsoil of those

submarine areas which are adjacent to territorial waters of the

United States and over which the

United States has exclusive rights

with respect to exploration and exploitation of natural resources .

Significance of the new law is that

individuals and corporations engaged in prescribed activities on

the U .S . continental shelf are to be

treated for tax purposes as if they

were in the United States . To a foreign corporation or a nonresident

alien this means the difference between exemption and U .S . taxation .

A member of the Overseas Taxpayer

Assistance Team, Ralph Kendall (right)

assists a U.S . citizen in London . Members

of the team travel abroad for several

months each year, giving tax assistance

to citizens outside the United States.

International Activities / 43
New and Improved

Tax Conventions

New income tax convent' ns re

signed with representat ives of elgium on July 9, 1970, an a an

on March 8, 1971 . Inco a tax conventions with Finland an rini adTobago became effective upon ex .

change of instruments of ratification on December 30, 1970 . An

estate tax convention with the

Netherlands became effective upon

a similar exchange on February 3,

1 971 .

A number of significant changes

have been included in recent income tax conventions, including

provisions which (1) define key

terms in more detail ; (2) extend

the coverage of certain tax bene .

fits ; (3) incorporate new concepts,

designed to encourage international trade and investment; (4)

provide incentives for U .S . investment in developing countries; (5)

erect obstacles to certain tax avoidance schemes; (6) waive statutory

barriers to relief from international

double taxation ; and (7, ) expand

and modernize the provis ions under which U .S. and foreign authorities consult and negotiate to resolve

international tax problems. The

new U .S.-Netherlands estate tax

convention employs a different

approach than earlier conventions

to resolve problems of international

double taxation in the estate area .

This is done by giving primary estate tax jurisdiction to the decedent's country of domicile and

secondary jurisdiction of the country of citizenship .

The changes in recent conventions

will not eliminate international issues. Nevertheless such revisions

are designed to minimize areas of

controversy and expedite agreements between the United States

and foreign governments .

44 / Annual Report / Chapter Five

Countries which have

Income Tax Conventions

with the United States

1 . Australia

2 . Austria

3 . Barbados

4. Belgium

5. Burundi

6. Canada

7. Congo

8 Denmark

9 Finland

10. France

11 . Gambia

12 . Germany

13 . Greece

14. Ireland

15, Ital y

16. Jamaica

17 . Japa n

18 . Luxembourg

19. Malawi

20. Netherlands

Netherlands Antilles

21 . New Zealand

22. Nigeria

23. Norway

24. Pakistan

25. Rwanda

26 . Sierra Leone

27 . South Africa

28. Southern Yemen

29. Sweden

30 . Switzerland

31 . Trinidad-Tobago

32. United Kingdom

33. Zambi a

Countries which have

Estate Tax Conventions

with the United States

1 . Australia *

2. Canada

3. Finland

4. France

5. Greece

6. Ireland

7. Italy

8. Japan *

9. Netherlands

10. Norway

11 . South Africa

12 . Switzerland

13. United Kingdom

-Also has gift tax convention with the

United States.

Competent Authority

Activity i n

Double Taxation Cases

The international enforcement pro'

gram initiated in the early 1960's

resulted in an increase of reallocations of taxable income to certain

U .S. corporations from their foreign

affiliates, under section 482 of the

Internal Revenue Code . This produced economic double taxation in

some cases, where no correlative

tax adjustment was available to the

foreign company. Revenue Procedure 64-54 was issued to alleviate

this situation by providing unilateral relief to U .S . parent companies in cases where double taxation would otherwise have occurred.

Similar relief has been extended,

under Revenue Procedure 69-13,

to U .S. parent corporations with

domestic subsidiaries operating in

foreign countries .

By the end of fiscal year 1971, relief under both procedures had

been granted to 160 taxpayers i.n

an amount exceeding $33 million .

The remedy provided under these

procedures is not available for

taxable years beginning after December 31, 1964 . Instead, taxpayers must request the assistance of

the U .S . "competent authority"

(the . Assistant Commissioner—

Compliance) charged with administration of treaty matters .

In cases where assistance is given

the U.S . competent authority wili

then seek to reach an agreement

with a foreign competent authority

which will provide relief to the U .S.

and foreign taxpayers involved.

Such agreements are reached in

most cases, on the basis of mutual

understanding and cooperation .

The number of competent authority cases due to section 482 type

allocations (including allocations

by foreign tax authorities) is expected to show a distinct rise as a

result of the advent of new appeal

procedures under Revenue Procedure 70-18 together with expiretion of relief under Revenue Procedures 64-54 and 19-13 . Already

34 requests for assistance under

Revenue Procedure 70-18 have

been received . Although no exact

projection can be made, a recent

survey of field offices discloses a

potential caseload many times this

number. To assist-the U .S. competent authority in handling the expected increase in complex allocation issues, additional technical

analysts are being recruited and

trained .

The U .S . competent authority is

concerned with double taxation

cases other than those arising out

of Internal Revenue Code section

482 allocations . During the year he

has been involved in many cases

covering a wide range of issues

subject to provisions of our tax

treaties. Issues include questions

as to the country in which certain

items of income have their source

whether a taxpayer of 0 ne treat;

country maintains a permanent

business establishment in the other

country, and the country in which

assets of an estate have a tax

status .

A special problem arises when international tax issues involve corporations or individuals of countries with which we do not have tax

treaties . Mutual agreement procedures previously discussed do not

apply in absence of a tax treaty,

even though tax issues do arise .

This administrative vacuum creates

an unfortunate opportunity for burdensome or inequitable tax situations . The basic solution to this

problem is negotiation of additional

treaties.

Exchange of

Information Progra m

Tax treaties provide for exchanges

of tax information . Under its routine exchange program, the Service

furnish :s information to other

cou ntri S on amounts of U .S .

source income received by resi. -

dents of these countries and U .S.

tax withheld on such amounts on

an individual basis . (Copies of tax

returns are not furnished .) Similar

information is received from for445-070 0-72---4

eign tax authorities . Approximately

555,000 information documents

were supplied to foreign authorities

and approximately 123,000 documents were furnished to the Service under the routine exchange

program in 1971 .

New procedures involving exchange of legal information were

initiated by the Service . Under this

program comprehensive copies of

Federal tax laws, including regulation and explanatory guides, have

been furnished to all countries with

which the United States has tax

treaties . The steadily increasing

number of international tax issues

has created a need for readily available references to the current tax

laws of other countries .

Withholding Ta x

on Nonresident Aliens

and Foreign Corporations

During 1969 the Office of International Operations collected

$190,128,000 in withholding

taxes . Persons who pay certain

income to nonresident aliens and

foreign corporations are required to

"withhold" the tax from such

payments .

The withholding tax is levied on the

gross amount of U .S. source fixed

or determinable income (largely

dividends, interest, rentals, royalties, fees, etc.) which is paid to

nonresident aliens and foreign corporations . An alien residing in

Argentina who is entitled to a dividend of $100 from a U .S . corporation actually receives $70 . The

other $30 is tax withheld by the

payer of the dividend, at the rate of

30 percent . Tax treaties with a

number of foreign countries provide for lower tax rates as well as

exemptions for certain types of

income .

The withholding tax table which

follows shows taxes withheld from

income received by residents and

corporations of 25 foreign counTax withheld from payments to nonresident alien persons of treaty and nontreaty

countries-calendar year 1969

countTy

Treaty muntries:

irlsousand debars

Tax from '.Number at

Tax with- foreign lnf.r.*-

held by gowm. tion docu .

domestic mansts .. .is

,withhold- or with' erfited b

#no holding Total tax :

hhh.W

In .. , agents agents withheld ing agents

Australia 3.274 519 519 4,455

Austria 1,753 203 203 3 .604

Bel ium 22,981 2,903 137 1 3,040 .' 11.802

Former Belgian o/ a ' s

Territories 2,825 65 t §5 659

Canada '232,860 1 27,136 2,447 : 29.593 257,290

Denmark 2600 269 269 2,320

Finland 'Z~3 35 35 332

France 59,848 6 ' 163 54 6,2171 17,340

Federal Republic of

Germany 217,388 3.278 3,?,78 69,120

Gre. 1 .060 189 189 . 2.9 32

c"

5

Italyreland 3984 507 07 3,672

1 :1:777 1.095 1' 1,0951 12,929

Japan 11,907 1.235 1.235 3.481

~UXCM~!Our 1 1 ~o 9,801 .315_;, 678!! 1,993, 2,520

Nelfieriandi' -_ - - - -,- 173 ;387 7 IZ843 !7 3827 23.225`i 7,421-

Netherlands Antilles 48 .072 2,947 3 - 2.950 1 '964

New Zealand 458 63 63 940

Norway 2,125 253 253 4.659

Pakistan 204 24,__ 24____ 189

Sweden i 759 4 988' 602 :108 759

Switzerland 2 646 33 .022 3S.637 71 .639 45,576

Trinidad andTobago 162 37 37 270

Republic of South Africa 955 1 : 236 236 1.187

United Kingdom 294 .016 t! 31,767 434 32,201 49, 988

U'K.,overseas territories 3,681 - 855 855 4.~52

ontraaty __tri____ _ co n ies 7?J63 19.685- 19.ii8 5

I!F~73 .01FS 14~.356 42.772 190.1281, 6?5.034

International Activities / 45

I

I
I

I

tries and overseas territories which

have tax treaties with the United

Sates. The line next to the bottom

reflects the collection from residents and corporations of all countries not having treaties with the

United States.

Withholding agent collections are

listed in the second column . However, foreign governments with

which the United States has a tax

treaty and certain foreign withholding agents are also required to

withhold and remit to the United

States . This is the case when the

foreign recipient is actually a

nominee for an alien who is not

entitled to the tax treaty benefits

of the country in which the nominee

is a resident . Withholding tax col .

lected by foreign countries and foreign withholding agents is listed in

the third column .

Advantages of collecting the tax

before payment is made to nonresident aliens are obvious. In most

cases the nonresident alien or foreign corporation recipient is not required to file a tax return, inasmuch as the withholding tax rate is

ordinarily equal to the statutory tax

rate .

Foreign Tax

Assistance Progra m

Under the Foreign Tax Assistance

Program (FTAS) the Service assigns tax advisors, upon request to

developing countries to assist in

modernizing their tax administration systems . Another important

aspect of the program involves

training courses for foreign tax officials offered within and outside the

United States. FTAS is financed

and administered mainly in part

nership with the Agency for

International Development with

technical coordination involving the

Organization of American States,

the Inter-American Development

Bank, the International Monetary

Fund, the United Nations and other

multicountry, organizations .

46 / Annual Report / Chapter Five

While the Service's main effort in

helping these countries continued

on an individual country basis

1971 saw the beginning of

a

s hi~

to a multicountry approach

.

There

was a reduction in the number of

individual country programs from

18 in fiscal year 1970 to 15 at the

close of fiscal year 1971 . At the

same time, the Service established

closer links with the technical assistance programs of multicountry

organizations.

A significant development in modernizing tax administration through

the multicountry approach was the

meeting of representatives of nine

countries in the Far East to consider creation of an Asian Tax Administration and Research (ATAR)

organization . The objectives of

ATAR in tax administration would

be similar to those of the InterAmerican Center of Tax Adminstrators (CIAT), which provides a

means,for stimulating and promoting improvements through seminars direct technical assistance

from member countries and regional meetings for the exchange

of experiences and ideas .

An interest in forming a similar

organization is developing in the

Middle East . Lebanon sent its top

tax administrator to CIAT's Fifth

Annual Assembly to observe the

proceedings and gather material

and ideas for establishing a similar

organization .

The Service encourages formation

of regional, self-help approaches

to tax administration modernization

with the thought that as individual

countries strengthen their tax administration systems they can reinforce each other, thus leadi fig to a

diminishing role in technical assistance for the Service.

Active Country Programs

In the ninth year of the Foreign Tax

Assistance Program, onsite advisory teams continued activity in :

Bolivia, Brazil, Colombia, Costa

Rica, Dominican Republic, El Sal .

vador, Guatemala, Honduras, Nicaragua, Paraguay, Trinidad and

Tobago, Uruguay, and Viet-Nam .

Two new programs were added :

Guyana and Jamaica . In fiscal

1971, long-term programs ended

in four countries-Argentina,

South Korea, Turkey, and Peru .

I

Foreign Visitor s

The orientation and training of foreign tax officials in the United

States continued as a prominent

feature of the Service's Foreign Tax

Assistance Program . The Service

was host to 407 tax officials from

44 countries . One hundred and

nineteen attended seminars under

the Service's International Tax Administration Training Series (INTAX) in subjects such as Middle

Management Development, Supervisory Development and Training

Management . Programs were spe .

ciallytailored to fit particular needs

of the other 288 visitors.

Not all visitors came from developing countries. Many came from

such industrialized countries as

Great Britain, Italy, Japan, and

Germany. The Service's automated

data processing system drew more

attention than any other function .

Support to Other Organizations

The Service continued to provide

technical support to the International Executive Service Corps . This

organization sponsors tax administration modernization programs

in Singapore and Taiwan. In addition, support was given to exten,

sive programs in Lebanon and

Saudi Arabia .

Lectures were given by Service personnel on problems in tax administration at a seminar sponsored by

the Organization of American States

for Central American countries.

2,613 Officials fro m

97 Countries Were Trained in

the United States

in Past Nine Years

Inter-American Center of Tax

Administrators (CIAT)

CIAT continued to grow and to

broaden its services to member

countries by arranging for exchanges of technical information

between countries and enlarging

the coverage of its technical publications . Commissioner Thrower led

the U .S. delegation to t he fifth

CIAT Annual Assembly held in Rio

de Janeiro . He delivered a paper on

the significance in tax administration of a tax fraud program with

criminal sanctions, an area in which

tax officials in developing countries

are showing increasing interest

Many foreign tax officials visit the Service

each year. Pictured at the right is General

Jong Keun Oh, Commissioner of National

Tax Administration of the Republic of

Korea presenting a desk name plate to

commissioner Randolph W. Thrower.

CIAT also conducted two technical

seminars in auditing and automated data processing attended by

representatives of member countries and representatives outside

the Western Hemisphere . Service

personnel presented technical

papers and participated in discussions at both seminars .

Training for foreign tax officials continued

at an increased pace. Joseph R. Hamon

(center, first row), Director of the Samice's Foreign Tax Assistance Staff is pfctured below with Brazilian tax officials

who visited the United States to take part

in an Organization and Methods INTAX

Seminar on Tax Administration .

International Activities / 47
...............

Legislative

and Legal

Activities

1.2........... .............

I
Introduction

The legal work of the Service is performed in the Office of the Chief

Counsel . The Chief Counsel renders opinions to officials of the

Service on substantive lega

I

questions. The legal staff prepares

Jrafts of proposed regulations implementing tax laws and participates in the rulemaking process involving these regulations . For 3

discussion of the regulations program see Chapter 1, page 8 .

Technical assistance is also furnished to the Treasury Department's legislative program.

In litigation, the Chief Counsel represents and assists the Commissioner in trying and settling cases

docketed in the U .S. Tax Court .

Important court actions are included in the appendix beginning

on page 91 . The legal staff also furnishes advice relating to refund

litigation, general litigation, crimiIt I enforcement, and alcohol, tobacco and firearms legal matters .

Criminal prosecution cases are

shown under Chapter 3, Enforcement Activities, page 31 . Statistics

on legal activities are shown on

Tables 20-27, on pages 123

through 125 .

Civil Litigatio n

Refund Litigation Activities

During the year, 1,091 refund litigation cases were disposed of and

1,177 new cases were received

leaving a total of3,467 cases pend

ing at the end of the year . In the

previous year 1, 182 cases werb disposed of and 1,189 cases were

received.

The Supreme Court rendered one

decision in tax refund suits in which

the Government's position was sustained . In the previous year the

Supreme Court rendered decisions

in four refund suits, with the Government's position being sustained

in three cases.

Of the 142 opinions involving 199

cases rendered by the Court of

Appeals, 88 were in favor of the

Government, 44 were in favor of

the taxpayer, and 10 were decided

partially for the taxpayer and partially for the Government .

The amount involved in pending

refund litigation cases increased to

$523 .7 million from $495 .8 million at the start of the year. This increase resulted from receipt of

new cases involving $134 .1 million and disposal of cases involving $106 .2 milion . The amount of

$134 .1 million involved in new

cases received represents a decrease from the amount of $155 .4

million involved in cases received

in the preceding year. The 1,091

refund suits disposed of during the

year gave rise to refunds of $57,

900,000 consisting of $5,791,000

refunded pursuant to Court of

Claims iudgments . $8 .840 .000 reResults in refund suits (settlements and trials combined)

[Amounts are in thousands of dollars]

AD rehmi -it.

in

"unsher of bar IN "a- :11musuot . Pan, carm.

Fiscal dlv,, Amount assanad centang. dls~

fam d in Jun.odt rv~ notrw paused

year of dispute ad) famished of

1967 - 1,2- 92 $110 . 9'58- $47.613' 42.91 1,176

1968 1:296 94,607 39,856 42.13 1 .118

969 15.3 1 20,059 72 .670 ' 60.53 1,394

1970 1,160 84 1971 1,091 10 6 223 :356 50 .262 59.58 1,053

:, 48,323 45.49 9~8

District Courts

funded pursuant to district court

judgments, and $43,269,000 refunded as a result of settlements .

The total refund of $57,900,000

represents a recovery by the taxpayer of about 54 .5 percent of the

amount of $106,223,000 involved

in completed refund suits . In these

refund suits, the Government's

position was successfully defended

with respect to $48,323,000 of the

amounts claimed for refund . (Comparable statistics for the past 5

fiscal years are shown in the table

below. )

Tax Court

Litigation Activity

Docketed Tax Court cases on hand

as of June 30, 1971 totalled 12,-

192 as compared to 11,453 pending i year earlier . 8,299 new cases

were received and 7,560 disposed

of; the dispositions included 806

decided by the Tax Court on the

merits, 567 dismissed, and 6,187

closed by stipulated agreement of

the parties.

Two cases originating in the Tax

Court were decided in favor of the

coamt7oi claim .

Hur

beal .1

iAmmunts P.,

Assistant suaved , canatege dis- Amount anved emotage

In (not res- not na- posed 1. (not- atdispute, fund*d)', funded of, dispute ..Junded) funded

j49,331 ; $2~,760, 46 .14 116 - $61 .6 , 27 $24,853 40 33

50.703 23 .562 46 .47 178 43,904 16,294 37*11

97 .500 56,992 58 .45 169 22.559 15,678 69

49 .2461 26.401' 53 .61 107 35,110 23.861 67.5096

63 .816, 39 .841 , 62.43 153 42,407 8,482 20.00

Results in Tax Court case s

Fiscal

y.

. . Number , (thousands) (thousands) emircentrave

1967 7248 $367.995 $109.505 29.76

1968 5:944 313875 98825 3148

1969 5,831 3093:699 145 :589 36.48

1970 6564 4 0 092 130,724 32 .67

1971 7:560 391:605 143 .913 36.7 5

Cases disposed of by settlement

charl'I.T.1al :

Ischat end Toltal If s

Fleacall Aryounts

*,arecovered I RescarvarTY

yson, Number (thmaturrud .) (thousand.) P-nt- ar

J79 27.29 1967 6,274 $312.156 $as

1968 5058 281785 82215 29.18

1959 4:776 329:938 118:974 36.o6

1970 5:343 352328 1 105 .447 29 .93

19 71 6 187 316:997 100.788 31.79

Cases disposed of by trial I

end

perattles, Amounts Recovery

a rhad recovered

Total deficlaw0wi

number end 1 Tota l

of "-a z" Overall rantanniallas

disparead recovenvad recovery

Flecal (thassuands) (thourmords) parresurat-9- year o f

1967 659 $47.249 $15,807 33.45

1968 611 29.131 13,859 47.57

1969 793 59.798 22888 38.28

1970 70 44:9921 22:654 1 50 .43

1 19 806 52 98 21,779 41 .09

I

Figures for settled and tried cases do not add to overall totali, which include a small

nu m er of cases dismissed .

Tax in litigation

[in thousands of dollars)

- - - - t.xicourt'- __ ', 16hund 11118= inEfts0

$495' 87 7

134

106*1026213

523 .715

48 .323

'Tiesses and Over.-

stashus, Tate, iasrrt~ias payments

Pendmg~hly~ $1 .959.930 $1~370,30 7 $93.i46

489.012

5'

:147 R ..Wed 679720 1 9.

Disposed Of 511:810 391,605 3 2

2.127,841 1,467,714 136 12

-J'-Md 3 0 201.226 143,913 al 990

Revised.

Trial court cases, won, lost, or partially won (and partially lost) for the Government

DistrietcourIS ; Tax Court

In" --I,'-1970'1-971":'-19701ji9721!i 1970- '1971-

1 15,',---26 - 250F 207" 327 '

-we. 100407 Lost 6 6 123,1 247 82 .

Decided partially tour the t..P.Y.1 11

and !uartiallY for the Government 4 .. 4 5B,1 70, 161 1_ 280

1 22 opinions rendered involving 26 cases.

2 344 opinions rend-d involving 424 cases .

a Figures for 1970 are opinions . involving a total of 859 cases .

i For 1971, figures represent cases (787 cases involved in 526 opinions).

Gove rnment by the Supreme Court,

The Tax Court entered 526 opinions involving 787 cases . A total of

315 opinions were decided for the

Government ; 73 for the taxpayer,

and 138 were decided partially for

the Government and partially for

the taxpayer. In addition, the Tax

Court entered nine Summary Opinions involving nine Small Tax

Cases. Two were decided for the

Government, four for the taxpayer,

and three partially for the Government and partially for the taxpayer.

The Courts of Appeals rendered

126 opinions involving 195 Tax

Court cases ; 84 were decided for

the Government, 28 for the tax .

payer, and 14 partially for the Government and partially for the taxpayer .

In the trial or settlement of cases

in Tax Court, the Government was

awarded $144 million in taxes and

penalties out of $392 million put

in issue, and saved $9 million out

of $14 million in overpayments

claimed by taxpayers . As of the

end of the year, $1 .5 billion was

involved in taxes and penalties

being contested in the Tax Court.

The first three tables on this page

shows comparable statistics for the

last 5 fiscal years. )

Shown below is the Government's

record of wins, losses and partial

wins in trial courts (Court of

Claims, U .S . District Courts and

U .S. Tax Court) having jurisdiction

of Federal tax cases.

Tort Claim s

The Service acted on 198 tort

claims in 1971 . This represents an

increase of 32 claims over the preceding year . Also, the number of

large claims received was greater

than for the preceding year .

I

50 / Annual Report / Chapter Six Legislative end Legal Activities / 51
Case Disposals by Office of Chief Counse l

litigation

Aloohol

and

tob .- t.

litigation

=

4WWR

MMIUMUM

litigation

Refund

litigation

War

General Litigation

Legal Service s

In the general litigation area, case

receipts increased over the preced .

ing year by 2,261 cases . Disposals

increased from 10,138 cases in

1970 to 11,810 in 1971 . The inventory of pending cases stands

at 6,874, an increase of 1,296

cases over the 5,578 pending at

the end of 1970. Increase in receipts occurred at both the Na .

tional and field levels and related

to cases in litigation and advisory

opinions . Receipts at the field level

included 6,765 cases in litigation

and 5,840 noncourt cases as com

.

pared to 1970 field receipts of

5,535 cases in litigation and 4,883

noncourt cases. National Office receipts included 199 cases in litigation and 260 noncourt cases, as

compared to 1970 figures of 159

and 226, respectively. Field disposals were 5,911 cases in litiga .

tion and 5,554 noncourt cases in

comparison to 1970 disposals of

5,113 cases in litigation and 4,693

noncourt cases . National Office

disposals increased over the 19 70

disposals, 97 cases in litigation

and 248 noncourt cases in 1971

compared to 165 cases in litigation

and 167 noncourt cases in 1970 .

For detailed statistics on case re .

ceiptsand disposals, see Tables 2,4

through 27 on page 124.

The Supreme Court decided 2

cases in favor of the Government

and one case against the Govern .

ment in the general litigation area .

There were a number of cases de .

cided by courts of appeal and in 10

cases petitions for writs of certiorari were filed and denied . Decisions in the .general litigation area

involve issues relating to collection

of Federal tax claims and liens and

matters concerning injunctions and

civil enforcement of internal revenue summons. Summons cases

continue to represent a major area

of litigation .

Extensive legal services were furnished by National and field offices

in connection with disclosure of in .

formation, noncollection matters,

and matters arising under the

Freedom of Information Act (5

U .S .C . § 552) . General litigation

lawyers participated in training

sessions held in all regions in the

Advanced Technical Training Program for Revenue Officers . They

also furnished substantial legal

assistance and performed many

services not related to docketed

cases, such as rendering day-today formal and informal advice to

administrative personnel, visitations to service centers, district

offices and participating in general

training programs for collection

personnel .

Revenue Legislation

Assistance Provided

Genera l

The Service continued to play an

active role in development of legislation relating to internal revenue

matters by providing technical assistance to other offices of the

Treasury Department, to staffs of

committees of Congress concerned

with tax matters and, on occasion,

to other executive agencies . Such

assistance included preparing information reports, technical reports, drafts of bills and accompanying technical explanations and

other data relating to

I

egislative

matters, and attending pub,lic hearings and congressional comm ittee

meetings .

To assist the Assistant Secretary

for Tax Policy in formulation of the

Treasury Department's legislative

program, the Service engaged in a

number of research and study projects in such areas as estate tax

and tax on foreign income.

Tax Legislation Enacted

The Excise, Estate, and Gift Tax

Adjustment Act of 1970 (Public

Law 91-614) shortened time for

filing and paying tax on estate tax

returns from 15 months after the

decedent's death to 9 months. In

the case of the gift tax, the Act

changed the filing of returns and

payment of tax from an annual

basis to a quarterly basis. The Act

postponed scheduled reduction of

the 7 percent excise tax on automobiles and the 10 percent excise

tax on telephone service until 1973 .

Congress enacted a number of

other public laws relating to tax

matters, the most important are

listed and summarized below:

Public Law 91-469, enacted October 21, 1970, permits certain

shipping companies to defer payment of income taxes upon agreement to deposit the income into a

fund to purchase or replace U .S .-

flag merchant marine ships .

Public Law 91-518, enacted October 30, 1970, provides for a tax

deduction for certain payments

made by a railroad to the National

Railroad Passenger Corporation .

Public Law 91-679, enacted January 12, 1971, provides that in certain cases a spouse will be relieved

of liability arising from a joint income tax return .

Public Law 92-9, enacted April 1,

1971, extends the interest equalization tax through March 31, 1973 .

Public Law 91-673, enacted

January 12, 1971, made several

amendments to the beer provisions

of the Internal Revenue Code . In

general, these amendments (1)

It. beralized provisions for refund or

credit oftax on beer returned to the

brewery, lost or destroyed ; (2) permit removal of beer for research or

development without payment of

tax; (3) modified provisions defining the limits of brewery premises

for certain operations ; and (4) provided for establishment of experimental breweries.

Title XI of the Organized Crime

Control Act of 1970 (18 U .S.C.

§§ 841-848) provides comprehensive Federal controls over

traffic in, and storage of, explosives . These controls are administered and enforced by the Alcohol,

Tobacco and Firearms Division of

the Internal Revenue Service . The

Act also expands Federal author .

ity over unlawful use, and threatened use of explosives, formerly

contained in 18 U .S .C . § 837 and

provides for joint enforcement

thereof by the Treasury Department and the Federal Bureau of

Investigation . The provisions of 18

U .S .C . §§ 2514 and 2516 with respect to transactional immunity

and wire communications are now

made applicable to the provisions

contained in 18 U .S .C. § 944

(d)-(i).

Title 11 of the Omnibus Crime Control Act of 1970 (18 U .S .C . S

924(c)) provides for more severe

sentencing of persons convicted of

carrying or using a firearm in commission of a (Federal) felony.

Public Law 91-659, enacted January 8, 1971, made several amendments to distilled spirits provisions

of the Internal Revenue Code .

These amendments (1) liberalized

refunds or allowances with respect

to tax on distilled spirits lost or

destroyed at distilled spirits plants :

(2) made domestic distilled spirits

available to foreign embassies free

of tax: (3) permit "bottling-inbond" spirits to be bottled after

payment of tax ; and (4) extend to

bulk distilled spirits from Puerto

Rico and the Virgin Islands the

privilege, previously available only

for imported spirits, of transfer

from Customs to Internal Revenue

Bond.

i

52 / Annual Report /

Chapter Six Legislative and Legal Acthittles / 53
Tax Legislation Pending

Among tax bills awaiting action by

Congress at the end of the year

were the following :

H .R. 20, to provide for export,in .

centives through use of a domestic

international sales corporation

(DISC) .

H .R . 25, to simplify the Internal

Revenue Code of 1954 by repealing obsolete and rarely used

provisions .

H.R. 424, to provide an income tax

deduction, in the case of disabled

individuals, for transportation ex .

penses to and from work and pro.

vide an extra exemption for a taxpayer or spouse who is disabled .

H .R . 7296, to permit a govern . mental unit issuing industrial development bonds to elect to have a

$10 million, rather than a $5 mil .

lion, limit apply to an issue .

S. 382, to provide tax incentives

.for contributions to candidates for

Federal office.

Legislative Cooperatio n

The Service furnished technical assistance to the staff of the Joint

Committee -on Internal Revenue

Taxation and the House Committee

on Ways and Means in perfecting

bill language and drafting committee reports on two bills in the

alcohol, tobacco and firearms area .

Legislative lmp!ementation -

An important function of the Service is to implement tax legislation

once it has been enacted . Implementation includes issuance of

new and amendatory regulations,

revisions of tax return forms and

instructions, issuance of publicity

primarily through news or techni .

cal information releases, revisions

of Service publications, and issuance of special instructions and

procedures to field offices . (For a

fuller discussion of some of these

programs, see Chapter 1 and the

Appendix .)

Interpretative

Activities

Interpretative activities remained at

a high level during the fiscal ytar

There was a substantial increase in.

the number of cases formally

submitted. Personnel of the Chief

Counsel's office participated with

representatives of the Assistant

Commissioner (Technical) in devel .

oping solutions to problems of particular urgency, and arrangements

were made for the Chief Counsel's

Office to informally review all Reve .

nue Rulings prior to their publication . Many questions of significant

impact arose as a result of develop .

ing regulations under the Tax Reform Act of 1969 .

Among the corporate reorganiza.

tion problems considered were

those resulting from recent changes

in the Code which permit new types

of triangular corporate acquisitions

whereby a subsidiary uses stock of

a parent in making acquisitions .

Consideration was also given to the

scope and ramifications of the Su .

preme Court's significant decisions

in Nash v . United States, 398 U .S .

1 (1970), and United States v.

Davis, 397 U.S . 301 (1970). The

Nash decision has required a complete reexamination of the Service's

previous positions concerning the

tax effect of transfers of accounts

receivable where the transferor

used a reserve for bad debts

'

In

light of the Davis decision consideration is being given to establishing guidelines as to when distribu .

tions to shareholders result in a

"meaningful reduction" of their interests so as to qualify for capital

gains rather than dividend

treatment.

In the natural resources area the

Chief Counsel's Office was asked to

determine the nature of economic

interests of oil companies where

a domestic governmental unit or a

foreign country owns the resources .

This matter was still under study at

the end of the year.

One of the persistent problems in .

volving individual taxpayers was

resolved by the publication of Rev .

Rul . 71-247, I .R .B . 1971-23, B .

It was concluded that for purposes

of the travel expense deduction, the

"home" of an employee who is assigned to work at widely scattered

temporary locations is the fixed

abode where he resides with his

wife and children .

Personnel of the Chief Counsel's

Office participated extensively in

the development of Rev. Rul . 70-

544, C.B. 1970-2, 6 and Rev. Rul .

70-545, C.B. 1970-2, 7. These

two published rulings contain comprehensive descriptions of the Fed .

eral income tax impact on individuals, exempt pension funds, savings and loan associations, and real

estate investment trusts of the sale,

ownership, and purchase of fractional interests in pools of real estate mortgages administered by the

Government National Mortgage Association . These two Revenue Rul.

ings should provide valuable guidance to the mortgage industry.

Tax exempt organizations received

a great deal of attention . The charitable status of "public interest law

firms" was one of the problems

considered . These firms litigate for

the public good in some chosen

area of national interest, such as

preservation of the environment or

consumer protection. Because the

legal issues were novel and complex the issuance of all rulings to

such organizations was suspended

for 60 days in the fall of 1970 .

Chief Counsel's Office participated

in an intensive study which cul .

minated in the issuance of guidelines for these firms to follow to

obtain favorable rulings . The legal

rationale was also developed to

support the announcement that private schools would no longer be

entitled to a charitable classification if they maintained a racially

discriminatory admissions policy .

Attention was also given to procedural questions that the Service

was required to consider in implementing its duties and responsibili .

ties under the National Environmental Policy Act of 1969 (NEPA) .

This Act required agencies to prepare and publicize environmental

statements in connection with all

proposed major actions significantly affecting the quality of the

environment

'

The Service was required to develop its own in-house

procedures and guidelines . A document was prepared and forwarded

to the Treasury Department .

New Small Tax Case

Procedures in the

United States Tax Court

Taxpayers with small disputes now

have a quick and inexpensive way

to secure a court 'trial . The Tax

Reform Act of 1969 established

simplified and less formal procedures in the U .S. Tax Court for taxpayers with relatively small disputed amounts (where neither the

disputed amount of the deficiency

nor the claimed overpayment of income or gift taxes exceeds $1,000

in any one taxable year or $1,000

in estate tax) . When the small case

procedure is used, the Court need

not prepare written findings of fact

and may support its decision with

a brief summary opinion outlining

the basis of the decision . Decision

and summary opinion are not a

precedent for future cases . Deci .

sions in such cases are not appealable by either party.

The small case procedure may be

used only on the request of the taxpayer, but even if the taxpayer so

requests, the Tax Court may refuse

to use the procedure if, either on

its own motion or at the Government's request, .it determines before trial that important reasons

exist for conducting the trial under

regular procedures. In addition, the

Court may discontinue small tax

case procedures and handle the

case under the regular procedures

if, before the decision becomes

final, it becomes evident that the

contested deficiency or overpayment is an amount greater than

$1,000 . 1

A petitioner whose disputed tax is

within the statutory amount who

wishes to have his case handled

under the small tax case procedures may so elect at the time he

files his petition. A simplified petition form is available upon request

from the Clerk of the Court. The

Court will ordinarly permit a taxpayer to elect sma [I tax case proce .

dures at any time prior to trial . The

Court may also permit a petitioner

to withdraw his election at any time

before the trial .

Upon the filing of the answer, the

case is treated by the Court as

ready for trial and no reply is required unless the Court so directs .

Affirmative allegations in the answer are ordinarily deemed denied .

Trials of small tax cases are conducted as informally as possible

consistent with orderly procedure,

and any evidence deemed by the

Court to have probative value is admissible . A petitioner may appear

for himself or he may be represented by any person admitted to

practice before the Court . The hearing is stenographically or otherwise

recorded, but a transcript need not

be made a part of the record unless

the Court directs . Neither briefs nor

oral arguments are required but the

Court may hear oral argument or

permit filing of briefs or memorandum briefs . If briefs are permitted

by the Court, the Judge or Commissioner ordinarily require that

they be filed in a relatively short

time so that the case may be decided promptly.

A small tax case session is ordinarily presided over by a Commissioner (there are presently five

Commissioners) and although final

action in small tax cases must be

taken by a Judge of the Court, the

Commissioner may announce his

recommended disposition from the

bench . The procedures make it easier and less expensive for taxpayers

with small cases to bring their

cases before the Tax Court and

obtain a prompt disposition.

Small tax cases may be tried in

cities located in all 50 states and

the District of Columbia .

54 / Annual Report /

Chapter Six Legislative and Legal Activities / 55
Planning

Activities ...) cmp~w O@N@

n I
Introduction

Although branches of the Service

participate in planning, overall

leadership and special skills are

provided by the office of the Assistant Commissioner (Planning and

Research). This office also performs regular staff studies and research for the office of the Assist.

ant Secretary of the Treasury for

Tax Policy.

As modern concepts and technology have provided m ore opportunities for greater efficiency and

sophistication in tax administra .

tion, it has become necessary to

perform systems analysis, and

planning and research on a continu.

ing basis .

It required years of planning to de.

sign the automatic data processing

system, and it will take many more

years to improve the system, using

the best technology available.

Storage and Retrieva l

of Images of Tax Returns

Large scale requirements for access to *returns will continue to

burden the Service as long as puli .

ing and refiling original documents

remains a standard practice .

In January 1971, testing was begun

to determine the feasibility of using

microfilmed images 6f individual

tax returns and documents, in lieu

of the original documents .

Microfilm viewer-printers are used

for retrieval of the data by providing an image on a screen or a hard

copy reproduction . Taxpayers in

two test districts (Springfield,

Illinois and Cleveland, Ohio) can

visit or telephone their district

office and receive a quick answer to

questions regarding their returns .

Integrated

Data Retrieval System

(IDRS)

The Service is using the most ad.

vanced technology to speed replies

to the vast number of inquiries it

receives concerning taxpayer ac.

counts . With an ever increasi.ng

volume of returns filed, the Serv .

ice has committed itself to keeping

pace with the newest developments

in computerization by installing the

Integrated Data Retrieval System

(IDRS).

Starting in October 1971, the system will be operational on a limited

basis in eight states in the south.

west part of the country.

Here is how IDRS works : If the in .

quiry is by telephone, the taxpayer

is asked to hold the line while a

Service employee in the receiving

office consults the computer. An

employee in Little Rock, Arkansas,

for example, can interrogate the

computer by sending a message on

a terminal resembling a typewriter

keyboard to the service center in

Austin, Texas. Information concerning the taxpayer's account is

flashed within seconds on a video

screen above the keyboard in Little

Rock. If necessary, the employee

can obtain a printed copy of what

is on the screen . The Service em.

ployee in Little Rock can then pick

up the telephone and answer the

inquiry. .

The major advantage of IDRS is

that Service employees gain quick

access to information stored (many

miles away) in computers for an .

swering taxpayer inquiries on many

active accounts. Questions about a

taxpayer's account status can be

answered while he is on the telephone or standing at the information booth .

The key to IDRS is a system of

video display-inquiry stations to be

located in Service offices . These

stations will be linked to large

random-access computer files in

service centers. This arrangement

enables the Service to produce, almost instantaneously, a taxpayer's

record in an office far removed from

the service center where the tax.

payer's return is processed .

The system affords almost im.

mediate access to a particular file,

eliminates paperwork, and provides

for rapid updating of files .

Planning-Programming.

Budgeting System

Continues to Evolve

Planning - Programming - Budgeting System (PPBS) techniques were

continued by the Service in its 5-

year program planning . Program

analyses and coordination facili~

tated developing spring preview

estimates for review of the Service's budget proposals .

Estimates of revenue increases, by

type of tax (which are expected to

result from program increases contained in the Service's budget

request), were developed for inclusion in the Treasury's general estimates of revenue receipts as reflected in the President's budget.

Relating revenue increases from

enforcement programs to program

costs makes it possible to project

the effects of Service budget on

Federal receipts. Again ofabout $5

occurs for each additional dollar of

enforcement manpower.

The Service prepared a compilation

of data for a Special Analysis of

Programs for Reduction of Crime

for the Office of Management and

Budget. This material accompanied

the Federal Budget and consisted of

an analysis of actual and estimated

crime reduction program outlays

for FY 1970-1972 and outlined

(1) program objectives, (2) impor.

tant budget year program changes,

(3) actual and projected program

accomplishments, (4) legislation

enacted in the past 12 months affecting the program, and (5) steps

taken in the last year toward improved interagency and intergovernmental cooperation and coordination . Service material covered :

Income tax fraud, alcohol ;and tobacco tax evasion, firearms, ex .

plosives, and specialized activities

against organized crime .

Analytical Studies

Sharpen

Program Development

The Service conducted a number of

analytical studies during the year.

These include :

Audit Strategy Study

The short-term phase of the Audit

Strategy Study was completed this

year . This phase was concerned

with investigating alternatives

aimed at achieving an optimum

balance of several significant tax

administration objectives. The

long-term phase of the study is

continuing, aiming for additional

refinements in audit planning tech .

niques by taking into account the

impact of tax appeal actions, ap*

plication of different audit proce .

dures, flexibility of future audit

operations, utilization of information aids, and more refined estimates of the indirect effect from

enforcement.

Statutory Unallowable

Items Test

The Service conducted a test of

the feasibility of developing a low

cost program for screening all tax

returns for deductions which appear unallowable by statute. Preliminary results indicate that this

program may result in correcting

over 300,000 returns producing

~revenue of approximately $20

million .

Redefinition of Individual

Income Tax Audit Classe s

A study of Individual Income Tax

Audit Classes was conducted with

the objectives of (1) defining new

audit classes of taxpayers whose

returns require similar audit skills

and (2) providing for increasing the

effectiveness of classification techniques and use of scarce audit

manpower.

As a result of this study, business

returns with adjusted gross I ncome

under $ 10,000 were separated into

four groups, two groups with low

compliance and high average

amounts of tax change (farm and

nonfarm), and -two with higher

compliance and lower tax change

(farm and nonfarm).

Discriminant Function

Formulas

for Small Corporation Returns

A study was organized to develop

cliscriminant function formulas to

select for audit corporation returns

with assets of less than $1 millio,n .

If this effort proves successful a

new classification system will be

installed in 1973 to increaise the

effectiveness of audit in the cor.

poration return area .

Special Study

of Delinquent Accounts

and Returns

Twelve studies are underway to

develop more efficient procedures

for achieving compliance with filing and payment requirements of

the Internal Revenue Code. Five

relate to unpaid accounts, three

relate to a more effective filing control of Forms 1040 (including the

utilization of information docu .

ments such as Form 1099, 1065,

1120S, and W2), and the remain .

ing four relate to a more efficient

system for maintaining filing con .

trol of Business Master File returns. These studies are conducted

with a view to improving the yield/

cost experience in the three areas

cited as well as measuring the ef .

fect of the programs on improving

voluntary compliance . It is antici .

pated that these studies will result

in improvement in allocating en .

forcement manpower to understaffed programs .

Study of IRS Organization

In 1969 the Commissioner

launched a comprehensive study of

the entire Service organization to

ascertain whether tax administra .

tion responsibilities were being dis-

.Charged in an efficient and effective

manner, and to insure that the

Service would be able to adapt to

the changing environment of the

1970's.

To conduct the study a group of

Service and Treasury executives

was appointed. A number of substudies were also undertaken by

National, Regional, and District Office officials; and the resulting reports were submitted to the group

for consideration . The group's report and recommendations have

been submitted to the Commissioner.

Organizational changes designed to

make the Service more responsive

to needs of taxpayers will be implemented inFY 1972 . These changes

involve creation of a new Taxpayer

Service Division to upgrade Service

efforts to provide assistance, information, materials, and other services to the taxpayer. A newly established Assistant Commissioner

for Accounts, Collection, and Taxpayer Service (ACTS) will super.

vise the new division as well as the

Collection Division and the Data

Processing organization of the National Office . At Regional Offices the

58 / Annual Report / Chapter Seven Planning Activities / 59
organization supervised by Assistant Regional Commissioners for

Collection and Data Processing is

being combined under an Assistant

Regional Commissioner for ACTS .

The Collection Division in each of

the 58 IRS District Offices is being

redesignated the Collection and

Taxpayer Service Division, and in

the larger districts, will include a

separate Taxpayer Service Branch .

Other recommendations of the

study group are being evaluated .

The Taxpayer

Compliance Measurement

Program (TCMP)

The Taxpayer Compliance measure.

ment Program is the major long.

range scientific research program

of the Service . It is designed to an .

swer basic questions about how

well taxpayers voluntarily comply

with tax laws . The Service must

have meaningful measures of the

total tax administration job. These

measures are obtained through the

TCMP and other programs and are

compared with current operations

to determine what portion of the

tax administration job is left undone, and what programs are

needed to close the gaps .

TCMP has helped to identify and

classify size and frequency of errors on income tax returns . It provides the basis for analyses, based

on sampled data, to channel the

Service's scarce resources into

programs aimed at noncompliant

taxpayers .

In 1971 TCMP data were used for

refinement of Service programs,

and to answer inquiries on taxPayer compliance . In addition,

Pl~ns were developed for inqui.

nes

into the estate tax and i hformation

returns area.

60 / Annual Report / Chairter Seven

Research Emphasizes

Improved

Tax Administration

During 1971, efforts were directed

toward (a) alleviation of problems

in the income tax withholding sys .

tem, (b) development of legislative

and regulatory proposals on administrative aspects of the tax sys.

tem, (c) design of changes in administrative procedures to improve

compliance, and (d) expansion

of the Federal-State Cooperative

program for exchange of tax

information.

Income Tax Withholding

Provisions of the Tax Reform Act

of 1969 resulted in underwithhold.

ing of tax for employees in certain

situations . The new low income allowance was built into withholding

schedules applicable to all wage

earners. This resulted in a prob .

lem for some employed couples .

For withholding purposes, each

spouse is given a low income allowance, but only one low income

allowance is applicable on their

joint return . Standard deduction a[.

lowances are built into the with.

holding system without limitation

to amount . The increase in the per.

centage standard deduction provided by the Act aggravated underwithholding problems of employees

who claim the maximum standard

deduction or whose itemized deductions are less than the percentage deduction allowance assumed

for withholding .

A legislative proposal is being developed to reduce underwithholding which stems from the disparity

between the top tax rate used for

withholding and marginal rates applicable to income of employees

with high wages .

Research was also directed at development of an alternative with.

holding method for employees who

have frequent periods of unem .

ployment during the year. These

taxpayers have an overwithholding

problem which the Service hopes

to alleviate.

Legislation and Regulations

The Service made a review and reevaluation of legislative changes

related to administration, proposed

by the Service in earlier years, but

still pending . A package of new proposals as well as revisions, was

presented for inclusion in the

Treasury's tax legislative program .

An analysis of experience with the

Federal tax deposit program resulted in a revision of the regula.

tions covering the deposit of withheld income tax and social security

taxes by employers. The revisions

were designed to ease deposit requirements for small employers

and simplify the rules . To help

meet the Treasury's cash flow

needs, the new regulations require

more frequent deposits by large

employers.

The Service presented its views to

the Assistant Secretary for Tax

Policy on a number of subjects . For

example, the administrative as .

pects of a value added tax were

discussed and information was developed on proposed revisions of

estate and gift tax reporting and

payment requirement .

Administrative procedures

The Service collaborated with the

health insurance industry in a comprehensive study of problems the

industry encountered in complying

with information reporting require. ments for health care payments.

Several changes have been made

through new regulations, rulings,

and administrative actions .

Arrangements were completed with

the Department of Agriculture and

Housing and Urban Development

for more comprehensive reporting

of income payments made under

programs they administer . For ex .

ample, farm support payments in

the form of materials and supplies

and FHA payments to contractors

are now covered by information

reports .

Another development in administrative procedures relates to employee pension, profit-sharing, and

other deferred compensation plans .

Work is nearing completion on a

master file system for processing

all returns related to these plans.

The stucture of the system will be

similar to the existing Business

Master File and Individual Master

File . Its scope will incude all funded

employee plans except those governmental units .

Federal-State

Cooperative

Exchange Program

The scope of the Federal-State cooperative program for exchange of

information was enlarged in several

respects .

Agreements on coordination of tax

administration have been concluded with 48 states and the Dis .

trict of Columbia . (During the year,

argeements were concluded with

Alabama, Connecticut, and Louisiana .) Nearly half of these agreements have been negotiated or revised in accordance with a model

designed to provide the best

cooperation .

Selected standard data elements on

magnetic tape from the Service's

Individual Master File were furnished to State tax administrators

in 31 states and the District of

Columbia. These data covered

nearly two-thirds of all individual

returns filed with the Service for

the 1969 tax year.

445-0-70 0-72----5

Technical assistance to the States

has also been extended in severe

forms . Aid has been offered inI

formulating state plans for incom a

tax withholding, in assessing merits

of alternative state tax sources, and

in outlining problems that can be

expected in administering a new

state income tax .

The Service is exploring the possibility of expanding the cooperative

audit program to include State unemployment insurance agencies .

The program would have State

agencies perform audits on State

unemployment tax returns which

the Service cannot audit because of

I

imited resources . The results of

these State audits would be used by

the Service to make adjustments

on Federal returns.

In recognition of the growing automatic data processing capabilities

of State unemployment insurance

agencies, the Service, in collaboration with the Department of Labor,

developed a system for State computerized certification of credit

which employers claim on their

Federal unemployment tax returns

for contributions paid under State

unemployment tax laws . The new

system has been introduced in

Georgia and Mississippi on a test

basis . Testing will permit the Service to make necessary adjustments

prior to the effective date (January 1, 1972) for extension of employer coverage as provided by the

Employment Security Amendments

Act of 1970. The computerized system will be implemented nationwide in 1973 when the number of

Form 940 returns is expected to

rise above 3 million in contrast to

the current total of about 1 .7

million .

Statistics of

Income Highlights

for 196 9

Estimates of individual income and

busi.ness receipts for 1969, shown

in the annual Statistics of Income

reports, revealed moderate gains

over 1968 .

Individual taxpayers reported adjusted gross income in excess of .

$ 603 billion (up 9 percent), which

resulted in taxable income of $389

billion after allowing for personal

exemptions and deductions.

In the business sector, almost $1 .9

trillion in business receipts were

recorded by corporate and noncorporate entities . Corporations accounted for 83 percent of receipts

($1 .5 trillion) and showed not income of $82 billion . Partnerships

had net profit of $10.5 billion on

receipts of almost $86 billion . Receipts of sole proprietors reached

$234 billion and net profit

amounted to $34 billion.

The table and chart on the following page focus on the frequency

and amount of personal deductions

and exemptions claimed on individual income tax returns . The table

reveals that the total amount of

deductions and exemptions for

1969 was almost 21 percent

greater than that for 1965, accounted for by the tremendous

increase in itemized deductions

(up 58 percent) over the same period. The chart shows distribution

of returns by form of deduction

and average deduction reported,

classified by size of income.

A list of Statistics of Income publications in the past year appears on

page 95 .

Planning Activities / 61

I
Number of Returns and Average Deduction by Size of Adjusted Gross Income

Standard Deduction vs . Itemized Deductions

$5.000

Average Deduction

4,000 3,00D 2.000 1,000

Size o f

0 Adjusted Gross Income 0

Millions of Return s

20 30 4 0

25.4

V-_

5 .6 Standard Deduction

1W__ Itemized Deductions

0

All Return s

Under $5,000

$5,000 Under $10,000

$10,000 Under $15,000

$15,000 Or Mor e

iTh. -.9. limil . 1. from $2 .879 for nihinn with Inorm, of $15,000 order $20.000 to $549 .087

on reform with Income of SLOW= or more .

Increased Use

of the Tax Models

in 197 1

Originally developed 8 years ago to

meet Treasury's need for timely

estimates of the revenue effect of

proposed tax legislation, individual

and corporation tax models have

proved valuable tools for economic

planning . In 1971, new programs

were developed to provide greater

flexibility and increased production

capability.

Each model consists of a set of generalized computer programs used

with specially formatted data files

made up of records included in the

Statistics of Income files . Statistical information is generated from

a specific model file by use of in.

struction cards designed by statisticians and economists .

Individual Income tax returns : Number of returns, personal deductions an d

exemption s

All individual returns . total

Standard deduction returns"

Itemized deduction return s

Number of exemption .

Total personal deductions and'

exemption s

Amount of exemption s

Amount of standard deductions

Amovnt of Itemized deductions

1965' .

ince-.-is y...

1966 1967 1966 1969

67,596" 70.160, 71 .652 73 .729 _ 75,834

39 .724 41 .600 41,877 41 .698 40,919

27,872 28,560 29,774 32,030 34,9

1

5

190 .741 194,962 - 198,036 - 201,288 206 .197

(million del

185,802

114,445

20 .618

50 .739

193 .363 200,548 ~ 212,024 225 .555

116,977 118,822 120,773 123,718

21,820 22,103 22,074 21,627

54,566 59.623 69,177 80.21 0

I Includes returns with no adjusted gross income .

preparation of instruction cards

Beginning with the models for tax easier. The programs were deyear 1968, programs were im- signed to be used directly with any

proved by development of a simpli- existing Statistics of Income file

fied computer language that made with little special preparation . The

Selected Types of Returns Filed in 1970, Estimated for 197 1, and Projected for 1975 and 1980 by Calendar Year

11houninds )

)k.iu .l -

Type of Returns 1970

Total returns 113,35 6

Individual, total 4 77,281

AGI $Under $1a .000 55 184

AG I 0,00G no ever 21 :960

Corporation. total 1.781

Forms 1120 a of 1 120 Special, total 1,51 0

Assets under $50.000 1 651,

Assets

$50 .000

under $1,000 .000 756

Assets $ 1,000,000 or more 103

Form 1120-S 248

Employment 21 .872

Es to and Gift 287

Exempt organization 530

E x,,i.e 686

Diners,

10

.918

Data by size class are estimated.

of Be sed on reports of returns filed through June 30 : remainder

year estimated.

'

Include

. estimated effects of the Tax Reform Act of 1969 on

Form 1040 beginning with at .- filed in 1971 and the Employprograms are capable of generating up to 100 different statistical

tables in one computer run .

During the past fiscal year, nearly

50 tax model runs were completed .

Tabulations showed a distribution

of nonbusiness and business re

.

turns by revised audit classes .

These were used in determining

field office workloads for the next

several years, and in analyzing different withholding rates .

Tax model data are also provided

to other government agencies on a

reimbursable basis . Extensive tabulations were prepared for the De.

partment of Agriculture which

showed sources of income for

farmers in various geographic regions of the country related to their

profit or loss from farm operations.

Estimate 1

197 1

111,278

i1rojisciinj I

197 5

119,970

1980 19711Ch'"R .19 o

132,004 18 .6 3

75,402 81 .511 91,378 21 .19

51,038 44 .489 41,539 -18.61

24,225 36,875 49,681 105.0 8

1,835 2.076 2,437 32 .81

1,530 1,696 1,962 28.2 4

661 718 809 22.39

764 854 1,000 3089

106 124 152 43~40

265 336 424 60 .00

21,876 23.527 24.416 11 .61

3" 373 465 35.17

543 653 799 47.15

718 707 333 -53.6 2

10,561 11.123 12,177 15.30

ment Security Amendment . of 1970 .1hichaffect Form940returns

filod boydi-ingtin 1973.

In

.

itnn o Form 1040, in.1 .6as Forms 1040C, NR . PR,

and SS .

I Includes Form 1 120 with assets not regooorted .

I Includes Forms 1040ES, 1065, 1 0 41, 4, 2438 and 1042.

Returns

Filed Projections

Developing unified projections

return filing is an important ~art

of Service planning . The projections are used for many types of

planning including development of

returns processing and audit work

plans, budget allocation of manpower, and determination of facility requirements . Projections are

made for short- and long-range

time periods, and are revised annually to incorporate recent economic thinking and tax law

changes.

The employment situation, together

with the effect of ths 1-ax Re-orm

Act of 1969, h3ve caused a drop of

1 .9 millinn individup! returns between 11170 and 1971 calendar

years . A slight increase is expected

between 1971 and 1972 and a

substantial increase of 2 .4 million

returns between 1972 and 1973 .

Due to the Employment Security

Amendments Act of 1970 .and the

normal growth of 125,000, employment returns are expected to increase by 1 .1 million between 1972

and 1973 . This reflects an increase

in Forms 940 as a result of extension of unemployment insurance

coverage to firms having one or

more employees instead of four or

more .

The total returns file workload is

expected to grow from 113 .4 million in calendar year 1970 to 120

million in 1975, and should reach

132 million by 1980. Projections of

some major categories of returns

are shown in the table above.

I

62 1 Annual Report / Chapter Seven

44&-070 0-72-----G Planning Activities / 63
............

Management

Activities

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

.

I 1 1.

1

11.11,............. ...........................

CMMT oom

:i
Towards More Normal

Conditions in

Financial Management

The service received budgetary increases for FY 1971 ofabout 1,700

man-years and $73.3 million over

the prior year . For the first time in

2 years this Congressional authorization was not placed under sub.

sequent employment or expenditure restrictions . The Operating Financial Plan, which is based on the

Congressional authorization, thus

again became fully usable as the instrument for managing the Service's resources .

The year was not without some unusual financial developments . The

Service asked for and received supplemental appropriations to meet

its new responsibliffies under the

Tax Reform Act of 1969 and the

Organized Crime Control Act of

1970. These funds totalled $6 .2

million of which $5 .2 million were

for personnel and equipment necessary to launch the Service's new

explosives control program .

Two important projects were advanced by reprogramming funds.

One provided for additional equip.

ment and personnel at the new

service centers, and other provided

equipment needed to complete testing of the Integrated Data Retrieval

System (IDRS) in the Southwest

Region.

Reimbursable operations were expanded when the Service was called

on to participate in two special law

enforcement programs : The United

Nations security project and the

Sky Marshal operation for protecting commercial airlines from hijacking . The Service contributed a

majority of the personnel for these

emergency programs and was reimbursed for about 70% of the

nearly $2 .5 million cost.

At the end of the year the Service

had used 99.8 % of its total authorization, leaving an unobiigated balance of $1 .7 million .

For more financial detail see tables

28 and 29 on pages 126 and 127 .

Man-years authorized and realized

Authorized Realized Realize Percentaged

Appropriation 1970 19~L 1970 1971 1970 1971

Salaries and expenses 1,560 1,560 1,515 2,566 97 .1 100 .4

Revenue accounting and

processing 23 .399 23;110 22 .965 22.125 98 .1 95.7

Compliance 44.009 45,281 43,615 45.045 99 .1 99.s

Total 68 .968 69.9SI 68 .095 68,736 98 .7 98.3

Increase 1971 over 1970 . . . -_- +983 -------- +641 . . . . . . . -. 4

Personnel Summary

M.-Y.s . Fium6sr on rolis

Location and type realized at I.- of year

Service, tota l

Permanent

Temporary

National Office

Field service, total I

Data processing, total

Collection, tota l

Revenue officers

Other

Audit, totel

1970 2971 2970 1971

68,683 68,972 68,098 68,987

60.900

7.78 3

14,103

64.580

22,011

11,36 6

6.044

5,322

20,44 4

Revenue agents 12.850

Office auditors and tax technicians 2,957

Other- .4.63 8

Intelligence. total

Special agents

Other

7,315 6,808 7,035

-4,359 4.079 4,236

64,61S, 64,017 64.751

21,071, 20 .172 20,059

11,761 11,689 11,688

6,034 6,094 6,029

5,727 5,595 S,659

20,536 20,995 21,192

12,933 12 .932 12,93 6

2,45 3

11808

645

62,657 61.290 61,952

2,957 2.977 2 .94

4,647 5,086 5,307

2,585 2 .547 2,676

1,896 1,857 1,9

688 690 762.24

Alcohol and tobacco tax. total 2.854 3,120 3,004 3,470

Investigators 1.207 2,372 1,262 11616

In5pectors-general 396 408 398 416

Other 841

Inspecto-on premises 410 423 422 429

918 =922 2,009

Appellate . total 1.462 . 1 .412 1.470 1,392

Appellate conferees 635 626 626 634

Auditors 145 139 143 137

Other 682 647 701 621

Administration, District office 1,649 1,678 1,673 1,683

Administration . Regional Headcluarters 922 947 972 997

Regional Counsel 752 798 788 855

Regional Inspection 667 707 707 - 739

1 Includes terminal leave man-years for entire Service .

2 Includes Office of International Operations, National Computer Center and IRS Data

Center.

&Includes overseas employees hired locally (2 in 1971 and 2 in 1970) .

Service Again

Exceeds Savings Goa l

As a result of continued emphasis

on management improvement and

cost reduction activities, the Serv.

ice exceeded by $24,000 the $13 .2

million savings goal established at

the beginning of the year.

Of the total savings realized, $2.7

million is attributable to six major

projects implemented during the

year, several of which are described

elsewhere in this report. Continuing management programs, reports, incentive awards and position management accounted for

$2 .1 million in savings . The balance, $8 .4 million, was derived

from hundreds of operational improvements implemented throughout the Service.

New Laws Affect

Training Activities

The passage of major Servicerelated legislation had considerable

impact on training programs. The

Tax Reform Act of 1969 required

an extensive training effort to acquaint Service technical personnel

with its provisions . Approximately

25,000 employees took part in this

technical training . The Service's tax

law courses were also studied and

revised in light of the Tax Reform

Act.

Passage of the Explosives Control

Act necessitated added training for

investigators responsible for en .

forcement provisions of this law.

The Service also assisted in training state and local law enforcement

personnel in cooperation with the

Law Enforcement Assistance Administration of the Department of

Justice .

Advanced Techniques

in Training

In 1971 computer-assisted instructions were used to train operators

of input station terminals that are

part of the Direct Data Entry System located in service centers . Next

year, about 10,000 people will be

trained in the Direct Data Entry

System using this newly developed

technique .

Closed-circuit television is now

used extensively for instructor

training, briefing techniques, and

Chief Counsel trial attorney training. An automated shorthand refresher training course, utilizing

practice tapes with speed variations to match individual needs is

in use at the National Office.

A program for Continuing Professional Development, which employs prerecorded cassette tapes

covering a wide variety of topics in

professional areas of interest for

general management, is also being

used effectively throughout the

Service .

Other Training Courses

Meet On-Going Needs

The Service offers a broad selection

of training courses to meet the developmental needs of its personnel,

and to provide job skills for

recruits .

Computer systems play a large role

in Service operations and a number

of courses have been designed to

teach computer-related skills .

These courses range from basic

programming and systems analysis

and design to specialized programs

dealing with the Direct Dat : Entry

and Integrated Data R trieval

Systems.

The basic training course for Reve.

nue Agents underwent maj or revi. -

Sion, to include more emphasis on

audit techniques . One of the basic

courses in the Service's comprehensive management training program, the Advanced Seminar for

Supervisors (MDP-1), was also

thoroughly analyzed and revised

during 1971 . -

Cooperative

Education Programs

The Service's cooperative education programs continue to grow

through increased participation in

the original co-op program for accounting majors and through establishment of new programs for

students in other majors . Three

new Service cooperative education

programs were initiated for Special

Agent, Revenue Officer, and Tax

Auditor trainees.

The program provides students

with a means of extending their

classroom experiences by working

at jobs related to their fields of

study . It provides the Service with

a means of selecting and employing high quality students during

their undergraduate years . The

Service makes special efforts to recruit minority students into cooperative education programs. During

the 1970 calendar year, 463 students from more than 200 schools

participated in the accounting coop program.

Recruitment Efforts

Extended in Excellent

Labor Market

The 1971 recruitment picture was

characterized by an abundance of

high quality applicants, many of

whom ranked in upper portions of

their graduating classes and at the

top of Civil Service registers. There

was no serious shortage of account .

ants for Revenue Agent, Intemal

Auditor and Special Agent posi .

tions . Other technical positions

were als6 filled with comparative

ease .

Recruitment efforts were extended

to students with less than 4 years

of college, to fill a number of support positions for some compliance

activities. These positions were de.

signed to handle more routine

tasks, thereby freeing higher level

employees to work on more difficult

cases . Support positions estab .

66 / Annual Report /

chapter Eight Management Actlivillies; / 67
I

lished were : Revenue Representative in Collection, Tax Fraud Investigative Aide in Intelligence, and

Internal Revenue Aide for various

activities .

Tax Fraud Investigative Aides, for

example, will work with Special

Agents and perform semitechnical

and administrative aspects of investigations. Better utilization of

critical manpower will yield a more

effective and flexible force of criminal investigators as well as dollar

savings . The new Aide positions

also will become fertile ground for

identifying potential Special

Agents .

Service Among

First Agencies to

Offer Scholarships

The Service's scholarship program

was established to provide 21 disadvantaged high school seniors

(three from each region) with

careers in accounting. After 4 yea rs

of alternating work assignments

and study at accredited colleges

and universities, the scholars will

become revenue agents .

This program differs from other cooperative work-study agreements

in two ways : First, it provides a 4-

year period of study ; and second,

the Service, under authority from

the Civil Service Commission, may

pay travel and per them expenses

to and from school, tuition and

matriculation fees, and costs for

books and supplies .

Staffing Pace Picks Up

at New Service Centers

Redistribution of work to three new

centers will cause a reduction in

staffing of 4,200 permanent positions at the present service centers .

This reduction should be accomplished through attrition and voluntary transfers to the new centers .

Almost all position openings at the

new centers had been announced

by year's end and selections made

for key management positions . When operational, each center will

employ about 2,000 permanent

employees .

68 / Annual Report / Chapter Eight

Labor-Management Relations

Executive Order 11491 is the current instrument governing labormanagement relations in the Fed .

eral Service . Its impact on the

Revenue Service is being noticed in

manyways .

The National Association of Internal Revenue Employees (NAIRE)

represents 90% of the Service's

organized employees. NAIRE

sought through use of unit clarification petitions (with the Service's

support) to restructure its bargain .

ing units from 74 separate units

to three nationwide units. The petitions were dismissed by a Regional

Administrator of the Department of

Labor and again by the Assistant

Secretary of Labor for Labor-Man.

agement Relations. The matter was

on appeal to the Federal Labor Relations Council at year end . In the

meantime, the Service and NAIRE

agreed to enter into a "multi-unit"

lbargaining arrangement for Dis .

trict Offices represented by NAIRE.

The Service had been one of the

most highly organized agencies of

the Federal Government rior to

advent of Executive Order 11491 .

It has since become more highly organized as certified units are now

in existence in 57 of 58 districts,

all functioning service centers, the

Data Center, the National Computer Center and two regional

offices . During the past year, four

now units were organized, covering

1,300 employees . Two units

of more than 1,000 employees changed their exc lusive

recognition .

Written agreements formalizing the

relationship between the Service

and various unions representing its

employees continued to grow.

Thirty-six agreements are now in

effect covering 28,827 employees,

representing an increase of approximately 10,000 during the past

year.

A labor relations seminar for executives has been developed ; and

planning for training of labor rela.

tions specialists is underway. The

National Office has provided field

offices with assistance in connec.

tion with negotiations, unit and

election questions, and unfair labor

practice complaints .

New Grievance Guidelines

In November 1970, the Civil Service Commission issued new regulations or grievance procedures for

Government employees. The Serv .

ice designated a task force to de .

velop new regulations. The Service

was one of the first Government

agencies to fully implement the

Commission's grievance directives .

Despite the short period of time

from publication of regulations to

the effective date of April 1, 1971,

a formal training course was developed, and 31 Treasury employees

were qualified as Appeals and

Grievance Examiners. Employees

may submit grievances on any

feeling of dissatisfaction, and resolution of a grievance is sought at

t a owest level of supervision .

Vice President

Commends Revenue

Employment Practices

At ground-breaking ceremonies for

the new Memphis service center,

Vice President Agnew commended

Service employment practices . He

noted that "those wishing employ .

ment here will find the Internal

Revenue Service to be one of the

most enlightened of employers

whether in government or private

industry . They stand at the forefront of recruiting and training the

handicapped and employment of

minority groups and disadvantaged ."

The Service's continuing efforts in

the area of minority recruitment

were given added impetus by implementation of the President's

16-point program to assist Spanish

Americans .

The Service continued its practice

of employing the handicapped . The

Western Service Center was honored as Utah's top employer by the

eovernor's Committee on Employment of the Handicapped . Fiftytwo blind Taxpayer Service Representatives in 30 states answered

taxpayer inquiries throughout the

country. Seventy-six blind persons

on duty serve as attorneys, programmers, tax law specialists,

clerks, taxpayer service representatives, and dictating machine

transcribers . Liaison has been established with Gallaudet College

(the Nation's only liberal arts college for the deaf) to identify and

select graduates in accounting and

business administration for IRS

positions . Retarded persons have

been hired by many Service offices

in lower graded, repetitive-type

positions, and the roster of their

success stories is long and

impressive .

Assessment Center

Helps Identify

Managerial Potentia l

The Assessment Center technique

has been employed on a limited

basis in the past 2 years to provide

selecting officials with an objective

look at candidates for management

positions during a 2-day series of

simulated work situations. It was

continued as a part of the 1971

Executive Selection and Development Program and was expanded

at the supervisory level. A pilot effort was also undertaken at the

midmanagement level .

A New Look

at Performance Appraisa l

The Service issued a "Supervisor's

Guide to Performance Appraisal"

designed to create a climate which

will support each employee's efforts towards doing a better job .

The guide offers suggestions on

how to strengthen supervisor.

employee relationships through

open discussions of performance

and mutual exchanges of expectations, and introduces the concept of

shared goal-setting .

Centiphone

Increases Quality of

Taxpayer Service

The Service experimented with wide

area telephone circuits to improve

accessibility to taxpayers in rural

areas. Known as Centiphone (Cen .

tralized Taxpayer Information by

Telephone), this system will permit

all taxpayers throughout a given

state to call district offices at the

local call rate.

In addition to making it easier for

the taxpayer to obtain tax assistance, the Centiphone system is exJack McSpadden, blind Taxpayer Service

Representative, Little Rock, Arkansas

Di trict received the initial phone inquiry

ov:r the Centiphone System being in.

stalled in Little Rock . He is flanked by

District Director Fred W . Johnson on the

left and,Msistant District Director E. F_

Cook, Jr. on the right.

pected to reduce costs, since it will

encourage taxpayer use of the telephone instead of more expensive

personal visits or correspondence.

On the basis of 1971 test results,

the Service plans to expand the

Centiphone concept nationwide

over the next 4 years . Over one .

half of the Service's 58 districts

plan to install Centiphone during

the next year .

Management Activities / 69
Other Telecommunications

Progress

Negotiations with the communications industry resulted in providing

modern electronic switching systems for the three new service

centers and upgrading telephone

service at existing service centers.

The Service also began development of telecommunications support for expansion of the Integrated

Data Retrieval System (IDRS)

which eventually will require

22,000 miles of specially conditioned telephone lines, as well as

microwave circuits and submarine

cable facilities .

A Goal

of Improved Protectio n

Bomb threats remain a major concern . One bomb detonated in 1971

and caused the death of an em .

ployee in the Los Angeles District .

About 60,000 man-hours of productive time were lost by the Service during building evacuations .

However, the number of protest

demonstrations and bomb threats

involving the Service dropped from

the previous fiscal year. More effort

was put forth in evaluating and improving contingency plans and

physical security measures for protection of personnel and facilities .

Physical Space

Programs Move On

Work on the three new service centers was progressing well at year's

end. Completion is scheduled for

the Fresno Center in December

1971 ; Memphis, in January 1972;

and Suffolk, in July 1972 .

The Data Center was moved from

unsatisfactory space in downtown

Detroit to a temporary suburban

location . The new permanent build .

ing for the Data Center inside the

city is scheduled for completion by

February 1973 . Preparations have

begun for installing the Integrated

Data Retrieval System in 10 service centers and over 200 remote

stations .

The Service also activated three regional training centers. during

1971 . The Southeast regional center was opened in Atlanta, the Mid .

Atlantic center in Philadelphia and

the Southwest regional center in

Dallas .

Service Contracts

for Decentralized Printing

of Tax Packages

For several years the Service has

been seeking an effective means of

securing major tax form packages

from commercial sources . Recent

decentralized procurement for

major tax forms, through area

bidding, has reduced printing costs

and production time . The seven

regional areas are treated independently for competitive bidding

resulting in annual savings

of

$195,000. Printed tax forms re

shipped to regional service cent:rs

where envelopes are inserted and

labels applied .

Fast Retirement of

Returns Yields Savings

Records disposal programs resulted in release of space and

equipment valued at $1,425,000

for reuse by the Service, up nearly

$20,000 from last year. The "immediate retirement" program, in

which individual tax returns are

transferred to a Federal Records

Center 6 weeks after processing

will be extended from one to four

regions . Estimated benefits include

release of $50,000 worth of space

and savings of 75 man-years.

Forms and form letters

le""ribed by

Idta l

National Office (used at headquar .

ters and service-wide)

Regional offices (used by regional

headquarters components or 2 or .

more district offices)

District offices (used by I-] dil .

tricts and their subordinate offices)

Service Centers

Date Cen~er

Inventory of Forms and

Form Letters Reduced

For the fourth consecutive year, the

Service-wide inventory of forms and

form letters decreased . The fiscal

year 1971 decrease was 4.1 per.

cent. The table below summarizes

the year's forms management

activities.

Accident Prevention

on Targe t

The President's Mission SAFETY70 program--a 6-year campaign

aimed at reducing the number of

disabling injuries and costs by 30

percent by the end of calendar year

1970---was successfully concluded. The Service's 1970 frequency rate of only 2.1 disabling

injuries per 1 million man-hours

worked was a 40 percent improvement or the 6-year period .

Service personnel operated motor

vehicles a record 113 million miles

while on official business with an

accident frequency rate of only 6.7

per million miles driven

,

resulting

in the second lowest motor vehicle

accident frequency rate achieved

by the Service.

The Service acted on 100 claims

under the Military Personnel and

Civilian Employee's Claims Act of

1964, settling 50 in favor

of em

.

ployees who suffered personal

property losses incident to their

employment . This is a decrease of

8 percent over . the number of

claims handled last year.

opening Fiensly Iclosing

Inven- d .val- Eliml- Inven- Net

tory oped nated tary change

14,328 1 .728 2.311 13,745 -583

6,238- 495 693 6,040 -198

5 .399 376 . 915 4 .860 -539

710, 185 170 724 +14

1 .772 648' 505 : 1,915 +14 3

209 25 28' 206 -3

Minority Business Enterprise

The Service has been active in the

President's program to assist Minority Business Enterprise . IRS has

placed, through the Small Business

Administration, contracts totalling

in excess of $130,000 with new

minority businesses to assist them

in becoming self-supporting, productive employers.

Electronic

Composition Sounds

New Note

Two years ago, the Service began

contracting with outside firms to

convert manuscript material for a

variety of printed documents onto

magnetic tape to Perm it future updating without resetting type normally associated with hot-metal

type-setting methods. The new

method requires less storage

space ; and facilitates producing

finished products or reprints more

rapidly and at lower cost . Each contractor uses a different system for

identifying certain alpha-numeric

characters . This ordinarily pro.

hibits interchangeability between

contractors and prevents updating

or change by other than the original contractor.

The Service's new standard system

will be required for use with all ap .

proved printing contracts, and will

allow Service data to be processed

in any contractor's file maintenance

system, even though the original

file may have been created by another contractor. The standard system will be used at the Government

Printing Office to generate typeset

composition on a computer-driven

higlispeed electronic composer, designed for compatibility with the

proposed IRS information retrieval

system .

Electronic composition will have a

far-reaching effect on the printing

industry in areas of cost reduction

and expedited production . The

Service currently is using this sys .

tem to produce complex indices,

catalogues, and tax rate tables, as

well as text material .

Inspection--Co-Guardian

of Service Integrity

The Service faces a demanding task

in maintaining the public's confidence in the integrity of its operations . Through its Internal Security

and Internal Audit Operations,

Service management is provided

with timely, factual, and objective

information on any matter that represents a potential threat to

integrity .

Management has responsibility for

taking corrective action on facts

developed through audits and investigatrons. If evidence of a violation of a Federal criminal law is

disclosed, pertinent data are furnished to the Department of

Justice for prosecution .

Internal Audit Program

Emphasis on Collection

and Enforcemen t

Internal Audit Division programs

provide for periodic reviews of all

operations of the Service, with emphasis on activities closely associated with collection of revenue and

enforcement of tax laws. Examina .

tions of automatic data processing

activities are made on a continuing

basis by internal auditors .stationed

at regional service centers . These

reviews provide management with

information as to the efficiency and

effectiveness of operations and the

adequacy of controls, and point out

those areas in which corrective actions are needed . Corrective ac .

tions on internal audit findings

result in improved operating proce .

dures and strengthened controls,

and often result in additional reve.

nue or savings, which for fiscal year

1971 are estimated at $41 .8

million.

Examples of improvement resulting from internal audit findings

follow:

About $20 million in additional

penalties were recommended for

assessment due to implementation

of a program designed to secure

better compliance by employers in

payment of withhold taxes . Internal

audit tests disclosed substantial

noncompliance with statutory requirements for timely deposits Of

such taxes . Processing procedures

and programs were not adequate to

identify employers making only

token or late deposits; therefore,

noncompliance penalties were as .

serted only against employers who

had made no deposits. Tests

showed that employers who made

at least one deposit, but otherwise

did not make timely payments in

amounts sufficient to meet statutory requirements, were respon .

sible for delays in receipt of about

$1 billion in revenue .

Corrective action in one case in .

volved the examination of income

tax returns filed by a corporation

constructively owned by one individual, and resulted in proposed

assessments of $1 .9 million. In reviewing closed cases internal

auditors noted that the corporation

had accumulated earnings sub.

stantially in excess of reasonable

needs, thus avoiding the payment

of income tax by its shareholder.

Information in the case file did not

support the examining officers con .

clusion that the assertion of the tax

under Section 531 of the Internal

Revenue Code did not apply .

A computer program designed by

Internal'Audit identified over 1,600

income tax returns filed in one

large district on which nonexistent

or duplicate exemptions had been

claimed. More than $1 .1 million

had been refunded on the basis of

these false claims . Management

plans to use these computer

routines for nationwide detection

of similar returns .

1 1 70 / Annual Report /Chapter Eight Management Activities / 71
I

Decade-Ending Year

Record i n

Attempted Bribery Cases

The Service-wide program of education and indoctrination of employees in their duties and obligations in suspected bribery attempts

shows effective results . During

fiscal year 1971, 134 employees reported possible attempts to bribe,

resulting in 47 arrests, an all time

high .

Since January 1, 1961, 878 Service employees, engaged in every

level of Service operations, have reported bribery attempts . During

the decade 236 persons were arrested or indicted for bribery attempts . As of June 30, 1971, 156

had been convicted or had pleaded

guilty and another 51 were awaiting trial .

The program is illustrated on the

graph at the right . The top line

shows the number of attempted

briberies reported, the shaded subsection shows the number of arrests or indictments each year.

The following case examples show

that attempts to bribe are not confined to particular amounts, locations, or occupations;

In the same day, busy New York

Inspectors made five separate arrests for attempted bribery with

amounts ranging from $100 to

$3,500 . Arrested were a woolen

jobber, a textile waste dealer, president oVa leather goods firm he

former president of a demo;ittion

and salvage corporation, and a public accountant.

Within another 24-hour period in

the New York area four attempted

bribes in amounts totaling $1,300

were made to four different Service employees by an accountant,

businessman, a gynecologist, and

a former Service employee.

72 / Annual Report / Chapter Eight

Attempted Bribery Investigations / 1962-197 1

150

A New Jersey trucking company operator offered a revenue agent

$1,500 for a favorable audit . He

subsequently pleaded guilty to attempted bribery and was sentenced

to 3 years probation and fined

$10,000.

In Illinois, two brothers, partners in

a supermarket, offered $1,000 to

influence an audit conducted by a

revenue agent .

A Florida taxpayer and his attorney

offered a revenue agent $2,500 to

influence his decision on a tax

examination .

A Massachusetts insurance salesman was found guilty of attempting

to bribe a -evenue agent with $300 .

He served 3 months in prison and

was placed on probation for 2

yea rs .

In fiscal year 1971, 33 Service

employees received letters of commendation for their cooperation 'in

reporting bribery offers

.

In address

ing himself to the Attempted Bribery program, th4' Commissioner

stated that by giving recognition' to employees, we hope to

emphasize that "an agent who

develops a case despite great

trial and inconvenience, rather

than simply turning away from it,

is serving us all ." The 33 Service employees attest to the common resentment by Service personnel against those taxpayers or

their representatives who seek

to thwart civil assessments or

criminal prosecutions through bribery. Upon the arrest of an individual who had made a bribe offer of

$100,000 to a Service employee,

United States Attorney Frederick

B. Lacy, New Jersey Judicial District, stated in a press release on

December 1, 1970, "The courage

and integrity of the men of the Internal Revenue Service led to this

arrest

* I

am proud to be associated

with agents who, by their shining

example, have demonstrated to the

cynical segment of the public that

probity cannot be eroded by

bribery ."

Guilty pleas in attempted bribery

cases outnumbered convictions by

juries by more than 2 to 1 . Of 170

individuals brought to trial, 111

pleaded guilty,with 45 being convicted by juries and 14 acquitted .

Complex Multi-Subject

Investigations Produce

Substantial Results

Teams of internal auditors and

internal security inspectors investigate breaches of integrity involving fraud by employees and by taxpayers in collusion with employees .

These inquiries are far-reaching in

both scope and results .

One investigation resulted in the

arrest or indictment in 1968 of 31

employees or former employees

and 13 taxpayers or tax practitioners on charges of attempting to

bribe an Internal Security Inspector. To date, 24 have been convicted (including 11 in 1971) and

criminal prosecution is pending

against 10 other individuals .

Charges were dismissed against

six (three due to death) and four

were acquitted .

Subsequent controlled tax examinations of taxpayers whos~e returns

were previously examine by the

arrested employees have resu led

in proposed additional tax and penalties of $6 .3 million as of June 30,

1971 . Weaknesses in examination

and review procedures noted during the investigation were brought

to management's attention .

Criminal Actions Highest

in Three Years

Initiation of prosecution actions

reached a 3-year peak this fisca l

Persons Involved in breaches of integrity

year. A total of 66 individuals were

arrested or indicted of whom 12

were employees or former employees. Comparison of prosecutive

actions initiated for the past 3

fiscal years is shown by the table

below .

At the end of the year, trial or indictment was still pending against

75 taxpayers and 28 employees or

former employees .

Investigation continued into attempted infiltration of the Service

by organized crime figures . In one

case, eight criminals were indicted .

Number arrested or Indicted

1969 1970 1971 Tota l

Employees or former employees of Interna l

Revenue Service 12 21 12 45

Taxpayers . tax practitioners . and others 44 37 54 13 5

Total 56 58 66 ' 180

Pictured left to right are Mrs. Meryl

Smith, Brooklyn District Revenue Agent,

Vernon D. Acme, Assistant Commissioner

(inspection), Hans Soidemann, Manhat.

tan District Revenue Agent, and Raymond

N . Klaly, Director, Internal Security Divi .

sion . Mrs . Smith and Mr. Seidemano had

just been commended by Commissioner

Throvver for their actions In reporting

bribery attempts and cooperation with the

Service in action taken .

Management Activities / 73
Record Number of

Security Investigations

Complete d

Internal Security investigations of

all types completed during the year

totalled 14,263, a 41 percent increase over fiscal year 1970, due

to improved procedures. In addition, 16,887 checks of police records were made on persons considered for temporary short-term

appointments or for positions created for special economic and educational programs. Investigations

are also conducted on certain applicants for enrollment to practice

before the Treasury Department,

:nd on accidents involving Service

mployees or property.

The tabulation at the right shows

the types of investigations completed during the past 2 years and

the related disposition . It should

be noted that one of the most rewarding aspects of Inspection activities is that many investigations

result in exoneration of wrongfully

accused empoyees . As in prior

years the vast majority of accused

employees were cleared after

investigation .

Assistance to

Other Agencie s

The Service conducted 1,359 investigations for other Treasury

components . Inspectors joined

other Service enforcement agents

to become the first contingent in

the President's program for protecting American passergers and

airplanes from hijacke rs . For the

period September 10 , 1970

through January 10, 1971, Inspectors, sometimes numbering as high

as 32, were engaged in this program. In honoring these Inspectors,

Commissioner Thrower pointed out

that the success of this program

attested to their ability to blend

courage with discretion .

74 / Annual Report / Chapter Eight

Investigations and disciplinary action s

type of Investigation anci Action igio 1971

Total Investigations Closed 10,107 14,263

Personnel Investigation s

Number of cases closed, tobil 7,863 11,600

Character and Security investigations 5,593 Ili

Conduct investigations 396 499

Special inquiries 1.874 2,155

Actions taken by Service management officials as a result o f

Personnel Investigations

Rejections I for employment 246

Disciplinary actions, total 435 541

Separations, total 2 161 lei

Bribery . extortion, or collusion 12 a

Embezzlement or theft of Government funds o r

property 6 2

Failure of employee to pay proper tax 8 6

FatsIfication or distortion of Government reports .

records . etc . 91 91

Ura uthorized outside activity 6 2

Failure to discharge duties properly 6 6

Divulgence at confidential information

Acceptance at fees or gratuities 1 0 01

Personal and other misconduct 31 65

Suspension from duty and pay 23 37

Reprimands, warnings, or demotions 251 323

Nondisciplinary actions (including clearances, closed

without action. and others) 7 .428 10 .91 3

Other Investigations

Number of cases closed, total 2.244 2,663

Applications for admission to practice before the

Internal Revenue Service 724 899

Charges against Attorney's, CPA's, and Enrollees 102 60

Federal Tort Claims

1

84 214

Atte mpted Bribery 88 129

Dis rinnination 0 2

irpiestigatiori,s for ottior Trelsury b~rea4s 1 .146 1,359

:nnc :,ud:sd under nondisciplinary actions in previousyears .

c d resignations, retirements, or other separations while employees were under

investigation or before admi,istratme decision was made on disciplinary action where

investigation disclosed derogatory information .

During October 1970, a similar

mission required the services of

30 Internal Security Inspectors for

5,893 man-hours to assist the

Secret Service in protecting dignitaries attending ceremonies at the

United Nations .

During the "May Day Demonstrations," from April 24 ' 1971,

through May 5, 1971, 27 National

Office Inspectors were sworn in as

Deputy United States Marshals

and contributed 1,938 man-hours

in the protection of facilities and

personnel .

At the request of the Territorial

Governor, the Service detailed revenue agents and special agents to

investigate allegations of widespread tax evasion on the part of

prominent Virgin Island residents .

Internal Audit coordinated and

supervised the work of these employees, whose activities resulted

in two successful criminal prosecutions and additional tax assessments of $3 million . Widespread

publicity concerning the cases has

resulted in a significant increase in

voluntary tax compliance . During

prior years, Internal Audit has provided assistance to the Virgin Islands in developing a modern tax

system . During this time, tax rev.

enues increased from $8 .9 mil .

lion in 1962 to 56.9 million in

1970.

Advisory Groups

Assist the Servic e

Advisory Groups suggest ways in

which the Service can improve it!L

operations and they furnish expert

advice pertaining to particular aspects of tax administration . At

present there are five such groups

appointed . They are: The Advisory

Group to the Commissioner, the

Art Advisory Group, the Advisory

Committee on Exempt Organizations, the Advisory Committee on

the Horse Industry, and the Advisory Committee on the Cattle

Industry.

The Advisory Group to the Commissioner was established on June

17, 1959 .

It comprises distinguished professionals concerned

with Federal taxation and provides

constructive suggestions on ways

in which the Service can improve its

operations. The group met on October 12-13, 1970 . The members

a re :

Do

nald C. Alexander, Esq .

Dinsmore, Shohl, Barrett,

Coates and Deupres

Central Trust Tower

Cincinnati, Ohio 45202

William T. Barnes

Lybrand, Ross Bros . & Montgomery

1100 Connecticut Avenue, NW. Washington, D.C . 20036

Professor Norton M . Bedford

University of Illinois at

Urbana-Champaig n

Department of Accountancy

College of Commerce and Business

Administratio n

Urbana, [it . 61801

Professor J . Keith Butters

Harvard University

Graduate School of Busines s

Administration

Soldiers Field

Boston, Mass. 02163

Sheldon S. Cohen, Esq.

Cohen & Uretz

1703 M Street, NW.

Washington, D.C. 20036

F. Cleveland Hedrick, Jr., Esq .

Hedrick & Lan e

1001 Connecticut Avenue, NW.

Washington, D.C. 20036

William M . Horne, Jr .

Reed, Smith, Shaw & McClay

Shoreham Building

Washington, D.C. 20005

Walter L. Kidd

Director of Taxes

American Telephone & Telegraph Co.

195 Broadway

New York, N .Y. 10007

Jeff Blair Mcllroy

Public Accountant

P.O. Box 434 5

Little Rock, Ark. 72204

A . Waldo Sowell, Jr.

CPA . Alexander Grant & Co .

2550 National Bank of Georgia Bldg.

Atlanta, Ga . 30303

Maurice E . StarK Esq.

Stark & Crumley

Warden Buildin g

Fort Dodge, Iowa 50501

Arthur B . Willis, Esq .

Willis . Butler& Scheifly

615 S . Flower Street

Suite 1100

Los Angeles . Calif. 90017

The Art Advisory Group was estab.

lished by the Commissioner of

Internal Revenue on February 1,

1968 .

This group consists of members

representing the three major segments ofthe Art World-museums,

universities, and dealers. The

Group provided advice on the valu .

ation of works of art for Federal

tax purposes at meetings held on

July 23-24, 1970, November 12-

13, 1970, and April 7-8, 1971 .

Dr. Richard F. Brown

Director

Kimbell Foundation

Fort Worth, Tex.

Mr. Charles E . Buckley

Director

City Art Museum

St. Louis, Mo.

Mr. Anthony M. Clark

Director

Minneapolis Institute of Arts

Minneapolis, Minn .

Dr. Perry B . Cott

Chief Curator (Ret .)

National Gallery of Art

Washington, D.C.

Mr. Charles C. Cunningham

Director

Los Angeles County Museum of Art

Los Angeles, Calif.

Mr. Louis Goldenberg

Art Dealer

Wildenstein & Co.

New York, N.Y.

Dr. George H . Hamilton

Professo r

Williams College

Williamstown, Mass.

Mr. Bartlett H . Hayes

Director

American Academy

Rome, Italy

Dr. Sherman E . Lee

Director

Cleveland Museum of Art

Cleveland, Ohio

Mr. William S. Lieberman

Directo r

Painting & Sculpture, Drawings &

Prints

Museum of Modem Art

New York, N .Y.

Prof . Charles F. Montgomery

Yale University

Now Haven, Conn.

Management Activities /. 75
Mr. Frank Paris

Art Dealer

Paris Gallery

Beverly Hills, Calif.

Mrs . Esther W . Robles

Art Deale r

Esther Robles Gallery

Los Angeles, Calif .

Mr . Alexander P . Rosenberg

Art Dealer

Paul Rosenberg & Co .

New York, N .Y.

Mr . Theodore Rousseau

Vice Directo r

Metropolitan Museum of Art

N ew York, N.Y.

Dr . Merrill C . Rueppet

Director

Dallas Museum of Fine Arts

Dallas, Tex.

Mr. Eugene V . Thaw

Art Dealer

E. V. Thaw Co .

New York, N.Y.

76 / Annual Report / Chapter Eight

In November 1969 the Commissioner announced the appointment

of 15 distinguished Americans to

the newly created Advisory Committee on Exempt Organizations.

These widely experienced people

agreed to advise the Service in

charting the outer limitations of the

tax law regarding religious, educational, charitable, and other organizations which constitute the

majority of tax exempt organizations.

The committee met on Septem .

ber 28-29, 1970 and January 25-

26,1971 .

Membership is as follows:

Dr. Carlton P. Alexis

Associate Professor of Medicine

Howard University

2401 Sixth Street NW .

Washington, D.C . 20001

Mr . Donald T. Burns

Arthur Young & Co .

615 South Flower Street

Los Angeles, Calif . 90017

Charles 0 . Galvin, Esq .

Dean, School of Law

Southern Methodist University

Dallas, Tex. 7522 2

Mr. H . J. Heinz 11

Chairman of the Board

H. J. Heinz Co.

1062 Progress Street

Pittsburgh, Pa . 15212

Dr . Adelaide Cromwell Hill

Boston University

Afro-American Studies Center

10 Lenox Street

Brookline, Mass. 02146

Dr. John R . Hogness

Executive Vice President

University of Washington

Seattle, Wash . 98105

Mr. James Roger Hull

Chairman of the Board

Mutual Life Insurance Co . of

New York

Broadway at 55th Street

New York, N .Y . 10019

Hon . Louis J . Lefkowitz

Attorney General

State of New York

80 Centre Street

New York, N .Y . 10013

Harry K . Mansfield, Esq .

Ropes and Gray

225 Franklin Street

Boston, Mass . 0211 0

Bishop Francis John Mugavero

75 Greene Avenue

Brooklyn, N.Y. 11238

Fred C . Scribner, Jr., Esq .-

Atwood, Scribner, Allen & McKusick

Commerce Buildin g

Portland, Maine 04110

Rabbi Ralph Simon

Congregation Rodfei Zedek

5200 Hyde Park Blvd .

Chicago, 111 . 6061 5

Mr. Richard J . Whalen

3846 Macomb Street NW.

Washington, D.C. 20016

Rene A . Wormser, Esq .

Wormser, Koch, Kiely & Alessandroni

4444 Madison Avenue

New York, N .Y. 10022

-Chair.sn.

In October 1970, the Commissioner announced the formation of an

Advisory Committee on the Horse

Industry . Composed of 15 distinguished citizens whose experience

and special knowledge

of

the 'industry has long been recognized,

the Committee includes representatives of the academic community and professional groups concerned with horses .

The primary purpose of the Committee is to apply its special expertise to counsel the Service in implementing important changes

such as those regarding the holding period for livestock for capital

gains treatment, the exchange of

livestock, and hobby losses . Members of the Committee also take

part in the developme nt of policies

and comment on administrative

guidelines or proposed rulings

dealing with horses .

The Committee held meetings on

January 21 and 22, 1970. Membership of the Committee is as

follows :

Albert G . Clay

Secretary of the American Horse

Council, Inc .

Mt. Sterling, Ky.

Benjamin Eshleman, Jr .

Partner, Eshleman-Vogt Ranch

Corpus Christi, Tex .

William S . Farish II I

President, Blue Creek Ranch Co .

Houston, Tex .

W. Sidney Felton

Co-founder and General Counsel o f

.

the United States Pony Clubs, Inc .

Prides Crossing, Mass.

Mrs . Katherine Haley

Thoroughbred owner

Ventura, Calif .

Max C. Hempt

Owner of Hempt Farms and Officer in

numerous horse organizations

Mechanicsburg, . Pa.

Edward H . Horme n

Chairman of the Board of Trustees .

American Horse Council, Inc.

Denver, Colo.

Warner L . Jones. Jr.

President, Thoroughbred Breeders of

Kentucky, and Board Member,

Churchill Downs and the

American Horse Council, Inc .

Goshen, Ky .

Robert H . Kieckhefer

Chairman, American Quarter Horse

Assoc .

Judges'Committee

Prescott, Ariz .

Robert G . Lawrence

Member, University of Maryland

Horse Council and Author of

numerous articles relating to

quarter horse industry

College Park, Md .

Kenneth Merdit h

C.P.A. specializing in financial

matters relating to the

horse industry

Wichita, Kans .

Gayle Mohne y

Attorney representing Keeneland

Association and Breeders

Sales Co.

Lexington, Ky .

Ogden Phipps

Chairman, The Jockey Club, and

Vice-chairman the American

Horse Council, Inc .

New York, N .Y.

Hart H . Spiegel

Counsel for both horse and cattle

ranchers and former Chief

Counsel of the IR S

San Francisco, Calif.

Frederick L. Van Lenne p

Treasurer and member of the Board

of Trustees, American Horse

Council, Inc .

Lexington, Ky.

Management Activities / 77

I
1,

In October 1970, the Commissioner formed an Advisory Committee on the Cattle Industry . A

primary purpose of the Committee

is to counsel the Service in implementing important changes in the

tax law such as those regarding the

holding period for livestock for

capital gains treatment, the oxchange of livestock, and hobby

losses.

The Committee will advise the

Service on development of policies

for administering new code provisions dealing with cattle, and will

be asked to comment upon proposed administrative guidelines or

revenue rulings.

The Committee held meetings on

January 11 and 12, 1971 . The

members of the Committee are:

Tobin Armstrong

General Manager& owner of

Particcion and Armstrong Ranches

Armstrong, Tex.

Dr. W. T . Berry, Jr.

Executive Secretary, American

Hereford Association

Kansas City, Mo .

Harvie Branscomb, Jr. Esq .

Branscomb, Gary, Thomasson& Hall

Corpus Christi, Tex.

FrankD. Brown, Jr.

Mr. Ararat Farms

Port Deposit, Md .

Gordon M . Cairns

Dean, College of Agriculture,

University of Maryland

College Park, Md.

Ben H . Carpenter

Chairman of the board

& Chief

Executive Officer, Southland

Life Insurance Co .

Dallas, Tex.

Donald V. Hunter

Vice President, National Livestock

Feeders Association

Centerville,S . Dak.

John M . Marble

Rancho Tularcitos

Carmel Valley, Calif .

Robert H . Rumler

Executive Secretary, HolsteinFriesian Association of America

Brattleboro, Vt .

NelsonE. Tamplin

Partner, Ernst& Ernst

Denver, Colo.

John Trotman

President, Trotman Cattle Co.

Montgomery, Ala.

Gordon VanVleck

Vice President, American National

Cattlemen's Association

Plymouth, Calif .

78 / Annual Report/ Chapter Eight 445-0700-M-7

OrganizationPrincipal

Officers

Organization of the

Internal Revenue Service

Internal Revenue

Regions and Districts

Principal Officers

Historica l

List of Commissioners
Internal Revenue Service

7 Regions . 58 Districts

.". a

1PIr- Ow at On

Wt I akt., . .E .

..It w

0

LEGEND

R .11.0 emdm

Dkkkt B..d.,

C-119- d 1 .1-1 R.- (wh1.gtk D.C.)

Rniond CommiWati-MM Dkettm,

04M Dirf t

S-k. W .

0 Went! cmder Cahr (miftitaL W. V&)

A 04da CaltmUm-14m Smh CoWs

Foreign Posts,

Office of

International

Operations

BON N

LONDON

MANILA

MEXICO CITY

OTTAWA

PARIS

ROME

SAIGON

SAO PAULO

TOKYO
I

Principal Officers of the

Internal Revenue Servic e

As of June 30, 197 1

National Officers

Office of the Commissioner

Commissione r

Harold T . Swartz (Acting)

Deputy Commissioner

Vacan t

Assistant to the Commissioner

Edwin M . Perkin s

Assistant to the Commissioner

Roger V. Bart h

Assistant to the Commissioner

William H . Connett

Chairman, Tax Forms Coordinating

Committe e

James N . Kinsel

Assistant to the Deputy

Commissioner

Donald C . Dawkin s

Director, Foreign Tax Assistance

Staff

Joseph R. Harmon

Administration

Assistant Commissioner

Edward F. Preston

Director, Program Staff

Julius H . Lauderdal e

Division Directors :

Facilities Management

Leo C . Inglesby

Fiscal Management

Alan A . Beck

Personnel

Albert J. Schaffer

Public Information

Wm. 1 . Greener, Jr .

Training

Stanley Goldberg

Equal Employment Opportunity

Office r

Philip N . Sansotta

Compliance

Assistant Commissioner

Donald W. Baco n

Deputy Assistant Commissioner

Leon C. Gree n

Division Directors :

Alcohol, Tobacco, and

Firearms

Rex D . Davis

Appellate

Arthur H . Klotz

Audit

Singleton B. Wolfe

Collection

Harold E. Snyder .

Intelligence

Robert K . Lund

Office of Internationa l

Operations

Clarence 1 . Fox, Jr.

82 / Annual Report / Organization-Principal Officers

Data Processing

Assistant Commissioner

Dean J. Barro n

Deputy Assistant Commissioner

Vacant

Division Directors :

Management Information

William E . Palmer

IRS Data Center, Detroit,

Mic h

Ernest Shaw

Operation s

Clinton L . Wals h

National Computer Center,

Martinsburg, W. Va.

Eddie Heironimu

Systems

Donald G . Elsberry

Inspection

Assistant Commissioner

Vernon D. Acree, Jr.

Division Directors :

Internal Audit

Francis 1. Geibel

Internal Security

Raymond N . Kiely

Planning and Research

Assistant Commissioner

Albert W. Brisbi n

Division Directors :

Planning and Analysis

Vacant

Research

James R . Turner

Statistics

Vito Natrella

Systems Development

Lancelot W. Armstrong

Technical

Assistant Commissioner

Harold T. Swartz

Deputy Assistant Commissioner

Richard J . Stakern

Division Directors :

Income Tax

John W. S . Littleton

Miscellaneous and Special

Provisions Tax

Linder Hamblen

Technical Publications and

Services

August F. Pohlig

Office of Chief Counsel

Chief Counse l

K. Martin Worth y

Technical Advisor to Chief Counsel

Robert B . Jacoby

Special Assistant to Chief Counsel

W. Dean Mathis

Special Assistant to Chief Counsel

Lester Stei n

Associate Chie' Counsel (Litigation)

John T. Rogers

Division Directors:

Alcohol, Tobacco, and Firearms

Legal

John F. McCarren

General Litigation

J . Walter Feigenbaum

Enforcement

William F . McAleer

Refund Litigation

Robert A. Bridges

Tax Court Litigation (Acting)

Robert A. Bridges

Associate Chief Counsel (Technical)

Richard M . Hah n

Special Assistant to Chief Counsel

Arthur B . White

Division Directors:

Interpretative

John L. Withers

Legislation and Regulation s

James F. Dring

Operations and Planning

William P. Crewe

Regional and District Officers Central Rezio 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 :

Administratio n

Arthur J . Collinso n

Alcohol, Tobacco, and Firearms

Fred Murrell

Appellate

W. Franklin Hammack

Audi t

Michael A. DeGuire

Collectio n

William J . Grabo

Data Processing

Wayne S . Kegerreis

Intelligence

Harold B . Holt

District Directors:

Cincinnati, Ohio 45202

Paul A . Schuster

Cleveland, Ohio 44199

Frank S . Turbett, Jr .

Detroit, Mich . 48226

Thomas A . Cardoza

Indianapolis, Ind. 46204

James E .Daly

Louisville, Ky. 40202

Robert J . Dath

Parkersburg, W . Va . 26101

Hugh D.Jone s

Director, Central Service Center,

Covington, Ky . 4101 9

Everett L. Meek

Regional Counsel

Clarence E. Price

Regional Inspecto;

Edward A. Conroy

Annual Report / Organization-Principal Officers / 83
Mid-Atlantic Region

All Regional Offices at 2 Penn Center

Plaza, Philadelphia, Pa . 19102,

unless a different address is indicate d

Regional Commissioner

Edward J . Fitzgerald

Assistant Regional Commissioner:

Administration

Americo P . Attorri

Alcohol, Tobacco, and Firearms

Vacant

Appellate

Victor Cuniglio

Audi t

Dwight L. James

Collection

William F . Culliney

Data Processing

Anthony L . Carrea

Intelligence

Amerigo R . Manz i

District Directors :

Baltimore, Md. 21202

Irving Machiz

Newark, N .J . 07102

Roland H . Nash, Jr.

Philadelphia, Pa . 19108

Alfred L. Whinston

Pittsburgh, Pa . 15222

H . Alan Long

Richmond, Va. 23240

James P. Boyle

Wilmington, Del . 19802

James H . Kennedy

Director, Mid-Atlantic Service Center,

Philadelphia, Pa . 19155

Norman E . Morrill

Regional Counsel

William J . Hagen (Acting )

Regional Inspector, Bankers Securities Building, Walnut and Juniper

Streets, Philadelphia,

Pa

. '9017

Emanuel M . Schuster

Midwest Regio n

All Regional Offices at 35 East

Wacker Drive, Chicago, 111 . 60601,

unless a different address is indicated

Regional Commissioner

Alvin M . Kelley

Assistant Regional Commissioners :

Administratio n

William F. Sulliva n

Alcohol, Tobacco, and Firearms

Vacan t

Appellate

Charles F. Miriani

Audit

John W. Baudendistel

Collectio n

Roger C . Beck

Data Processing

Norman B . Bergeson

Intelligence

John J . Olszewski

District Directors :

Aberdeen, S. Dak . 57401

John B . Langer

Chicago, 111 . 60602

Edwin P. Traino r

Des Moines, Iowa 50309

John F. Hanlon

Fargo, N . Dak . 58102

Frederick G . Kniskern

Milwaukee, Wis . 53202

Walter S . Stumpf

Omaha, Nebr. 68102

Richard P. Vinal

St . Louis, Mo . 63101

Eugene C. Coyle

St . Paul, Minn . 55101

George 0 . Lethert

S pringfield, 111 . 62704

Jay G . Philpott

Director, Midwest Service Center,

Kansas City, Mo. 64170

Arnold S . Dreyer

Regional Counsel

Frank C. Conley

Regional Inspector

Vacant

North-Atlantic Region

All Regional Offices at 90 Church

Street, New York, N .Y. 10007,

unless a different address is indicated

Regional Commissioner

John J . Flynn

Assistant Regional Commissioners :

Administratio n

Vacant

Alcohol, Tobacco, and Firearms

Edward J . Fox

Appellate

Theodore C . Rademaker

Audit

William M . Wolf

Collection

Robert M . McKeever

Data Processing

Marshall P . Cappelli

Intelligence

Vacan t

District Directors:

Albany, N .Y . 12210

Donald T. Hartley

Augusta, Maine 04330

Whitney L . Wheeler

Boston, Mass . 02203

William E . Williams

Brooklyn, N .Y. 11201

Elmer H . Klinsman

Buffalo, N .Y . 14202

John E . Foley

Burlington, Vt . 05402

Fulton D. Fields

Hartford, Conn. 06115

Joseph J . Conley, Jr.

Manhattan, N .Y. 10007

Vacant

Portsmouth, N .H . 03801

Frank W. Murphy

Providence, R .I . 02903

John J . O'Brie n

Director, North-Atlantic Service Center, Andover, Mass. 01812

Francis L . Browitt

Regional Counsel, 26 Federal Plaza,

New York, N .Y . 1000 7

Marvin E . Hage n

Regional Inspector, 26 Federal Plaza,

New York, N .Y. 1000 7

Sidney M . Walk

Director, Service Center,

Brookhaven, N .Y. 1171 6

Earl L. Torgerson

Southeast Region

All Regional Offices at 275 Peachtree Street, NE ., Atlanta, Ga .,

30303, unless a different address

is indicated

Regional Commissioner

William J . Bookholt

Administration

Richard C . McCullough

Alcohol, Tobacco, and Firearms

William N . Griffi n

Appellate

Vance N . Bates

Audit

Harold B. Bindseil

Collection

William H . Loeb

Data Processing

Edward G . Pranczke

intelligence

Edmund J . Vitku s

District Directors :

Atlanta, Ga. 30303

Walter T. Coppinger

Birmingham, Ala . 35203

Dwight T. Baptist

Columbia, S .C. 29201

Harold M . McLeod

Greensboro, N .C . 27401

John E . Wal l

Jackson, Miss. 39202

James G. Martin, Jr .

Jacksonville, Fla . 32202

Andrew .) . O'Donnell, Jr.

Nashville, Tenn . 37203

James A. O'Hara

Director, Southeast Service Center,

Chamblee, Ga . 30006

Daniel H . Hollum s

Regional Counsel

Henry C . Stockell, Jr.

Regional Inspector

Earl L. Fuoss

Director, Serv. Ctr., Memphis, Tenn .

Claude A . Kyle

Southwest Regio n

All Regional Offices at 1114 Commerce Street, Dallas, Tex. 75202,

unless a different address is indi .

cate d

Regional Commissioner

Clyde Bickerstaff (Acting)

Assistant Regional Commissioners :

Alcohol, Tobacco, and Firearms

Billy L. Gaunt

Appellate

G . Clinton Witt

Audi t

Lawrence M . Stewart

Collectio n

Alfred N . Kay

Data Processing

George M . Oliver

Intelligence

Robert D. Elledge

District Directors :

Albuquerque, N . Max. 87101

Maurice E . Johnson

Austin, Tex. 78701

R . L . Phinney

Cheyenne, Wyo . 82001

T . Blair Evans

Dallas, Tex. 75201

Ellis Campbell, Jr .

Denver, Colo . 80202

Arthur A . Kennedy

Little Rock, Ark. 72203

Fred W . Johnson

New Orleans, La . 70130

Carl R . Gromatzky

Oklahoma City, Okla. 73102

Clyde L. Bickerstaff

Wichita, Kans. 67202

Harry F. Scribner

Director, Southwest Service Center,

Austin, Tex . 78740

Ervin B . Osborn

Regional Counsel, 1025 Elm Street,

Dallas, Tex . 75202

William B . Riley

Regional inspector, 1511 Bryan

Street, Dallas, Tex 75201

David 0 . Lowry, Jr.

Western Region

All Regional Offices at 870 Market

Street, San Francisco, Calif.

94102, unless a different address

is indicated

Regional Commissioner

Homer 0. Croasmu n

Assistant Regional Commissioners:

Administratio n

Joseph T . Davi s

Alcohol, Tobacco, and Firearms

Brenton G . Thorne

Appellate

Gardiner B . Wilimarth

Audit

George S. Heard

Collection

Charles D . Moran

Date Processing

Willard L . Pierson

intelligence

Herman F. Kueh l

District Directors :

Anchorage, Alaska 99501

Lewis J . Conra d

Boise, Idaho 83701

Calvin E . Wright

Helena, Mont. 59601

Nelson L. Seeley

Honolulu, Hawaii 96813

Robert M. Cutt s

Los Angeles, Calif . 90012

Frank S . Schmidt

Phoenix, Ariz. 85025

Alden W. McCanless

Portland, Oreg. 97204

Vacant

Reno, Nev. 89502

Warren A. Bates

Salt Lake City, Utah 841 10

Roland V . Wise

San Francisco, Calif . 94102

Raymond F. Harless

Seattle . Wash . 9812 1

Neal S. Warre n

Director, Western Servico Center,

Ogden, Utah 84405

Robert H . Terry

Regional Counsel, 447 Sutter Street,

San Francisco, Calit . 94018

Richard C . Schwartz

Regional Inspector, 1076 Mission

Street, San Francisco, Calif. 94103

Henry A. Feltz

Director, Service Center, Fresno,

Calif. 9372 6

Leonard E . Semrick

I

84 / Annual Report / Organization-Principal Officers Annual Report / Organlzation-Principal Officers / 85
11 I I

Historical List of

Commissioners

of Internal Revenu

e

=. of 're. Commissioner of Internet 111-1

ted by Act of Congress, JulyT

1862

In addition, the following were Acting

Commissioners during periods of time

when there was no Commissioner holding

the office: John W. Douglass. Of

P .nnxylvanle, from Nov. 1. 1870, to Jan . 2, 1871 ;

Henry MayC. Rogers, of Pennsylvania, from

1 to May 10, 1883, and from May I

to June 4 . 1907; JohnJ. Kn.x of Minsots, from May 11 to May 20. li83; Robert

Williams, Jr., of Ohio, from Nov. 28 to

Dec. 19, 1900; Millard F. West. of Ken.

tucky from Apr 12 to May 26, 1921

;

H . F .

Mir.~, of Washington, from Aug. 16. to

Aug. 19, 1930: Pressly R. Boldridge, of

Iowa, from May 16 to June5 . 1933

;

HaroldN. Graves. of Illinois. from Jan . 23

to Feb . 29, 1944; John

S . Graham. of

North Carolina, from Nov . 19, 1952, to J

an . 19, 1953; Justin F. Winkle, of New

York, from Jan. 20 to Feb . 3 . 1953;

0. Gordon Delk, of Virginia, from Nov. I

to Dec . 4. 1955. and from Oct . I to Nov

. 4,

1958; Charles

1. Fo., of Utah, from Jan . 21

to Feb . 6, 1961

; Bertrand M . H.,dir~g, of

Texas, from July 11, 1964 to Jan 24, 1965

;

and William H. Smith of Virginia, from

Jan . 21 to Mar. 31,, 1 969

; Harold T.

swo

rtz

of Ind-a. I

. June 23, 1971 to

Aug. 5. 1971.

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

JNew York

an . 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, 18133

Walter Evans

Kentucky

May 21, 1883/Mor . 19, 1885

JosephS. Miller

West Virginia

Mar. 20, 1885/Mar . 20, 1889

John W . Mason

West Virginia

Mar. 21, 1889/Apr . 18, 1893

JosephS . Miller

West Virginia

Apr . 19,1893/Nov. 26,1896 W. St . John 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. Catiel l

Virginia

Sept . 1, 1909/Apr. 27, 1913

86 / Annual Report/ Organization-Principal Officers

William H . Osborn

North Carolina

Apr. 28, 1913/Sept. 25, 1917

DanielC. Roper

South Carolina

Sept. 26, 1917/Mar. 31, 1920

William M . Williams

Alabama

Apr. 1, 1920/Apr. 11, 1921

David H . Blair

North Carolina

May 27,1921/May 31, 1929

Robert H . Lucas

Kentucky

June 1, 1929/Aug . 15, 1930

David Burnet

Ohio

Aug . 20, 1930/May 15, 1933

Guy T . Helevering

Kansas

June 6, 1933/Oct. 8, 1943

Robert

E '

Hannegan

Missour i

Oct. 9, 1943/Jan . 22, 1944

Joseph

D. Nunan, Jr.

NewYork

Mar . 1, 1944/J une 30, 1947

George

J. Schoeneman

Rhode Island

July 1, 1947/July 31, 1951

John B. Dunlap

Texas

Aug . 1, 195 1 / 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/J une 22, 1971

Appendix

Taxpayer

Publications

Tax Forms

Activity

Supreme Court

Decisions

Actions of

Lower Courts

Statistics of

Income Reports

Published

j
Taxpayer Publication s

The wide range of matters covered

by Taxpayer Publications is most

apparent from the list of titles

reflected in this appendix. Approximately 19 million copies are distributed each year and the demand

for more information is growing .

Practically all items listed are reviewed each year to determine

continuing needs and revision requirements . New materi a I is added

to reflect new laws, regulations,

rulings, court decisions, and other

precedent setting developments .

Other changes reorganized material or simplify language .

A few titles on the list (such

Your Federal Income Tax, T:xs

Guide for Small Business, and

Farmer's Tax Guide) contain all the

information generally needed by

some large class of taxpayers . Most

others deal exclusively with a particular type of income, deduction,

or other tax matter. Those that deal

with subjects already covered in

booklets like Your Federal Income

Tax include details that are not appropriate for the large booklets .

Still others, such as Pension Trust

Procedures and Guide for Qualification, contain rather complex material intended for use of tax practitioners, Service pi~irsonnel, and

other specialists. A sm' all group of

publications are intended to be

used in the Nationwide Taxpayer

Education Program . Although, the

list represents a program to determine the public's need for published information abo ut the tax

laws and to develop publications in

the form best suited to fill that

need .

The following list shows the titles

of all publications included in the

program for the fiscal year. The

unit price is shown after the title

for items not distributed free of

charge .

Publication Number/Title

17

Your Federal IncomeTax . Price 75 0

54

Tax Guide for U .S . Citizens Abroa d

76

Law and Regulations Re!ating to the

Treatment of Annuities for Income

Tax Purposes . Price 450

(revised 5-69 )

225

Farmer's Tax Guide

308

Farmer's Gas Tax Credit

334

Tax Guide for Small Business .

Price 750

337

Law and Regulations Relating to

Employee Pension, Annuity, ProfitSharing, Stock Bonus and Bond

Purchase Plans Including Plans for

Self-Employed Individuals. Price 700

(revised 7-68 )

349

Federal Use Tax on Trucks, TruckTractor and Buse s

377

Pension Trust Procedures and Guides

for Qualification Under Section

401(a ) and 405(a) ofthe Internal

Revenue Code of 1954 . Price 35 0

378

Federal Gas Tax Credit or Refund for

Nonhighway and Transit Users

"s

A Guide to Federal Estate and Gift

Taxation. Price 250 (revised 12-67)

463

Travel, Entertainment and

Gift Expenses

501

Your Exemptions and Exemptions

for Dependents

502

Deduction for Medical and

DentalExpenses

503

Child Care and Disabled

Dependent Care

504

Income Tax Deduction for

Alimony Payment s

505

Tax Withholding and Declaration

of Estimated Tax

506

Computing Your Tax Under the

Income Averaging Metho d

507

Tax Information on Scholarships

and Fellowships

508

Tax Information on Educational

Expense s

509

Tax Calendar and Check List for 197 1

510

Information on Excise Taxes for 197 1

511

Sales and Other Dispositions of

Depreciable Property

512

Credit Sales by Dealers in Personal

Property

513

Tax Information for Visitors to the

United State s

514

Foreign Tax Credit for U.S. Citizens

and Resident Alien s

515

Withholding of Tax on Nonresident

Aliens and Foreign Corporations

51 6

Tax Information for U .S . Government

Civilian Employees Stationed Abroad

51 7

Social Security for Clergymen and

Religious Workers

518

Foreign Scholars and Educational

and Cultural Exchange Visitors

51 9

United States Tax Guide for Aliens

520

Tax Information for American

Scholars Abroa d

521

Moving Expenses-Tax Information

for Employees and Employe r

522

Adjustments to Income for Sick Pay

523

Tax Information on Selling

Your Home

524

Retirement Income and Retirement

Income Credit

525

Taxable Income and Nontaxable

Income

526

Income Tax Deductions for

Contributions

527-

Rental Income and Royalty Income

528

Information on Filing Your

Tax Retur n

529

Other Miscellaneous Deductions

53 0

Tax Information on Deductions

for Homeowners

531

Reporting Your Tips for Federal

Tax Purpose s

532

Tax Information for Students

and Parents

533

Information on Self-Employment Tax

534

Depreciation, Investment Credit,

Amortization, Depletio n

535

Tax Information on Business

Expenses

536

Losses From Operating a Business

53 7

Installment and Deferred-Payment

Sale s

538

Tax Information on Accounting

Periods and Method s

539

Withholding Taxes From Your

Employee's Wages

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

Tax Information on the Sale of

a Business

544

Sales and Exchanges of Assets

545

Income Tax Deduction for Interest '

Expens e

546

Income Tex Deduction for Taxes

547

Tax Information on Disasters,

Casualty Losses, and Thefts

54 8

Tax Information on Deduction for

Bad Debts

549

Condemnations of Private Property

for Public Us e

550

Tax Information on Investment

Income and Expenses

551

Tax Information on Cost or Other

Basis of Asset s

552

Recordkeeping Requirements and a

Guide to Tax Publications

553

Highlights of 1970 Changes in the

Tax La w

554

Tax Benefits for Older Americans

555

Community Property and the Federal

IncomeTax

556

Appeal Rights and Claims for Refund

557

How to Apply for Exemption for

an Organizatio n

558

Tax Information for Sponsors of

Contests and Sports Events

55 9

Federal Tax Guide for Survivors,

Executors, and Administrators

560

Retirement Plans for Self-Employed

Individual s

561

Valuation of Donated Property

563

Tax Return Filing Requirements for

U .S. Citizens Abroad

564

Tax Information on Mutual Fund

Distribution

566

Questions and Answers on

Retirement Plans for Self-Employed

Individuals

567

Tax Advice on Civil Service Disability

Retirement Payments

568

Federal Tax Information for Civil

Service Retirees

569

Answer~ to Questions Most

Frequently Asked by U .S . Taxpayers

Abroad

570

Tax Guide for U .S . Citizens Employed

in U .S . Possession s

571

Tax-Sheltered Annuity Plans for

Employees of Public Schools and

Certain Tax-Exempt Organization s

572

Tax Information on Investment Credi t

573

Interest Equalization Tax Highlights

574

Filing of U .S . Annual Return of

Income to be Paid at Source

686

Certification Required to Obtain

Reduced Rates Under Income

Tax Treaties

707

Excise Tax Information on Imported

Foreign-Made Automobiles

721

Comprehensive Tax Guide to United

States Civil Service Retirement

Benefits . Price 700

88 / Annual Report /Appendix Annual Report/ Appendix / 89
t

Tax Forms Activity

The following new forms were issued :

Number/Titl Pube . 493

Supplement to Employer's Tax Guide

Pub. 713

Income Tax Tables and Tax Rate

Schedules

W-2P

Statement for Recipients of

Annuities, Profit-Sharing

Distributions, Etc .

W-4P

Annuitant's Request for Federal

Income Tax Withholding

W-2 (VI)

Wage and Tax Statement (U .S .

Virgin Islands)

914E

Employer's Quarterly Return of

Withheld Income Tax

990-AR

Annual Report of Private Foundation

1041-B

Charitable Remainder Trust

1087-010

Nominee's Information Return for

Original Issue Discount

1099-Med . U .S. Information Return for

Recipients of Medical and Health

Care Payments

1099-OID U.S . Information Return for Original

Issue Discount

4683 U.S . Information Return on Foreign

Bank, Securities, and Other

Financial Account

s

4684

Casualty and Theft Worksheet for

Individuals

4686

Payer's Request for Identifying

Number of Supplier or Provider of

Medical and Health Care Services

4720

'Return of Initial Excise Taxes on

Private Foundations, Foundation

Managers and Disqualified Persons

(under sections 4941,4943, 4944

and 4945 of the I RC

)

4726-FY

Maximum Tax (part of 104G-FY

Package)

90 / Annual Report

/ Appendix

7005

Application for Additional Extension

of Time to File Corporation Income

Ta x Return

The following forms were reinstated:

2950

Statement in Support of Deduction

for Payments to an Employees'

Pension, Profit-Sharing, Stock

Bonus, Trust or Annuity.Plan

and Compensation Under a

Deferred-Payment Plan

2950 Instructions

Instructions for Form 2950

The following forms were transferred

to Justice Department:

678 & Special Tax Stamp

Assembly#3

Special Tax Return : Application for

Registry and Special Tax StampOpium, etc .

679

Opium Order Blank Requisition

680

Special Reports-See Part

151 .478-Regulations No. 5

785

Certificate of payment in the case of

a lost or destroyed special-tax stamp .

See 151 .113 of Regulations No . 5

786

Order For Stamps-Narcotic

802

Exempt Narcotic PreparationsManufacturer's Return

802-A

Quarterly Narcotic Return of Class

5

Man ufacturer-Receipts

802-8

Quarterly Naroctic Return of Class

5

Manufacturer-Dispositions

802 Summary No . 2

Report of Exempt Narcotic

Preparations

802 Summary No. 3

Report of Taxable Narcotics

810

Quarterly Return of Importer,

Manufacturer, Producer, or

Com pounder of Taxable Narcotic

Drugs and Preparations

810-A

Quarterly Narcotic Return of

importer, Producer or

Compounder-Receipts

810-B

Quarterly Narcotic Return of

Importer, Manufacturer, Producer,

or Compounder-Dispositions

810-C

Quarterly Return of Importer,

Producer, or Compounder of Taxable

Narcotic Drugs and Preparations

810-D

Quarterly Return of Importer,

Manufacturer, Producer, or

Compounder of Taxable Narcotic

Drugs and Preparations

810-E~ Annual Return of Taxable Narcotic

Drugs and Preparations on Hand

810-F (page 1, page 2, page 3)

Quarterly Summary (instructions are

on page 2, Form 810)

810-G (page 1, page 2, page 3)

Cumulative Summary (instructions

are on page 2, Form 810)

811

Monthly Return of Wholesale Dealer

in Taxable Narcotic Drugs and

Preparations

811-A

Monthly Return of Wholesale Dealers

in Taxable Narcotic Drugs and

Preparations

811-B

Monthly Return of Taxable Narcotic

Drugs and Preparations Disposed of

811-C

Wholesale Dealer's Inventory of

Taxable Narcotics

1315

Power of Attorney in Matters Relating

to Official Narcotic Order Forms

1964

Certification of Exempt Official

(Narcotics)

2513 & 2513 Cover

U .S. Official Order Form--Opium,

Coca Leaves, Opiates

The following forms were eliminated :

Pub . 35

Income Tax Withholding Table10 Day Perio d

Pub.36

Income Tax Withholding Table28 Day Period

Pub . 192

Combined Withholding Table

Weekly Periods

704

Estate Tax Preliminary Notice

705

Estate Tax Preliminary Notice

731

Exemption Certificate

4214

New Tax and Tax Changes in the

Railroad Retirement Tax Act

Supreme Court Decisions

Criminal Cases

On April 5, 1971, the Supreme

Court in United States v . Freed,

401U .S . 601 (1971), in a unanimous decision held that the National Firearms Act (26 U .S .C.

§§ 5801-5872), as amended by

Title 11 of the Gun Control Act of

1968, does not involve any violation of the Self-Incrimination

Clause of the Fifth Amendment . The

1968 amendments were designed

to eliminate the defects in the National Firearms Act revealed by the

Supreme Court's decision in

Haynes v . United States, 390 U .S.

85 (1968). The Court in Freed held

that a person charged with possessing a firearm not registered to

him in the National Firearms Registration and Transfer Record could

not plead the Self-incrimination

Clause as a defense since the

amended Act fully protects a per.

son against incrimination for past

or present violations, and creates

no substantial hazard of future incrimination . The Supreme Court

also concluded that the District

Court erred in dismissing the in- .

dictment for absence of an allegation of scienter, holding that the

Act requires no specific intent or

knowledge by the possessor of an

unregistered firearm that the firearm is unregistered . A very significant issue in the law

enforcement area is the construction to Title VII of the Omnibus

Crime Control, and Safe Streets

Act of 1968 (18 U.S .C., App. § 1202(a)(1)). The Service and the

Department of Justice construes

this Act as prohibiting the mere

"receipt" or "possession" of a

firearm by any person convicted of

a felony. Construction of the Act

is now before the Supreme Court

in United States v . Bass, cart .

granted 401U .S. 993 (1971).

In Bass the Solicitor General requested review of the decision of

the Second Circuit in United States v. Bass, 434 F. 2d 1296 (2nd Cir.,

1970), which held that in order to

remove doubt as to its constitutionality the statute would be construed as requiring an allegation

that the "receipt" or "possession"

were "in commerce or affecting

commerce." Three other circuits

have upheld the Government's construction of the statute and held

the statute as so construed to be a

constitutional excercise of the

Commerce Power . United States v .

Daniels, 431 F. 2d 697 (9th Cir.

1970); United States v. Synnes,

438 F . 2d 764 (8th Cir. 1971); and

Stevens v. United States, 440 F.

2d 144 (6th Cir . 1971) .

MiltonC . Jorn was tried in Federal

District Court on the charge of

willfully assisting in the prepara

.

tion of fraudulent income tax returns (26 U .S:C . 7206(2)). Following the imparielling of the jury,

the Government called to the stand

a taxpayer whom defendant allegedly had aided in pre paring his

return. At defense coun sel's suggestion, the judge warned the witness of his constitutional rights.

While the witness expressed a willingness to testify, stating that he

had been warned of his rights when

first contacted by the Se rvice, the

judge refused to permit him to

testify until he had consulted an attorney . Despite the Government's

assurance that the remaining wit.

nesses had been warned of their

rights by the Service upon initial

contact, the judge stated that the

warnings were probably inade .

quate. Thereupon he discharged the

jury and aborted the trial so that

the witnesses could consult with

attorneys . The case was set for retrial before another jury, but on defendant's pretrial motion the judge

dismissed the information on the

ground of former jeopardy . The

Government filed a direct appeal to

the Supreme Court which affirmed

the judgment of the district court.

United States v. Jorn, 400U .S. 470

(1971). The Supreme Court con .

cluded that the sustaining of a motion in bar based on a plea of former jeopardy is appealable by the

Government, as long as the motion

was sustained prior to the impanel .

ling of the jury in the subsequent

proceeding at which the motion was

made . The remaining and most crucial question before the Court was

in what circumstances retrial is to

be precluded when the initial pro.

ceedings were aborted prior to verdict without the defendant's consent. The Supreme Court felt that

an assessment of the source of

the problem prompting the mistrial or which side benefited from

the mistrial did not adequately satisfy the policies underpinning the

double jeopardy provision, and that

where a judge, acting without the

defendant's consent, aborts the

proceeding, the defendant has been

deprived of his valued right to have

his trial completed by a particular

tribunal . In examining the circum .

stances surrounding the discharge

of the jury, it seemed apparent to

the Supreme Court that the trial

judge made no effort to exercise a

sound discretion to assure that,

taking all the circumstances into

account, there was a manifest necessity for the sua sponte declaration of the mistrial . It was conclud

.

ed that the defendant's reprosecution would violate the double

jeopardy provision of the Fifth

Amendment.

Annual Report/ Appendix / 91 I
The Supreme Court on June 28,

1971, in United States v

.

Harris,

403 U .S . 573 (1971, by a five

to four vote reversed the decision

of the Court of Appeal s for the

Sixth Circuit in United States v.

Harris, 412 F . 2d 796 (1969), in

a case involving the issue as to

whether there was probable cause

for the issuance of a search war .

rant to search the defendant's

home for nontaxpaid distilled

spirits . The Court of Appeals relied

on Aguilar v. Texas, 378 U .S . 108

(1964), in stressing that the fact

that the search warrant stated that

the informant was known to the

agent as a "prudent" person, revealed no underlying facts as this

credibility, and on Spinelli v.

United States, 393 U .S . 410

(1969), in holding that the assertion of the affiant that the appellant

had a reputation with the affiant of

being a trafficker in illegal whiskey

may not be used to give additional

weight to allegations which would

otherwise be insufficient .

A majority of the Court held the

affidavit sufficient to support the

warrant when considered in its en .

tirety. The warrant detailed the

informant's personal extensive purchasing of nontaxpaid spirits from

the defendant at the premises to

be searched and stated that the

agent had found the informer to be

a "pru dent" person . The affidavit

also set forth the agent's own

knowledge of the appellant's reputation as a liquor law violator, in .

cluding the fact illicit whiskey had

been, within the past 4 years, found

in an abandoned house under ap.

pellant' s control .

Justice White, who cast the decid.

ing vote, merely concurred in the

judgment of reversal on the

grounds that when considered as

a whole the affidavit was sufficient .

and joined three of the other justices who voted for reversal in

con

c

luding that the fact that the informa nt made a statement against

his own penal interest provided an

additional basis for crediting his

tip. Thus, neither Aguilar, supra,

nor Spinelli, supra, where in terms

overruled by a majority of the court .

However, the precedent effect of

these cases has been materially

reduced.

On April 5, 1971, the Supreme

Court upheld the admission of certain incriminating statements of a

defendant which were overheard

by warrantless electronic eavesdropping on the part of Government agents by means of a transmitter which an informer consented

to wear during his meetings with

the defendant . United States v.

White, 401 U .S. 745 (1971 .)

Since the informer could not be lo .

cated at the time of trial, testimony

as to the conversations was elicited

from the agents who conducted the

electronic surveillance. The Court

found no difference for constitu .

tional purposes between an informer writing down for official use

his conversations with a defendant,

or the simultaneous transmission

of the conversations by concealed

radio equipment to recording devices located elsewhere or to Government agents monitoring the

transmitting frequency.

Supreme Court Decisions

Civil Cases

The Supreme Court, on a direct appeal by the Government, reversed

a District Court . holding that section 501(c)(14)(B) was unconstitutional on the ground that it

arbitrarily discriminated between

plaintiff and other similar nonprofit

mutual insurers . The section involved limited the tax exemptions

to certain nonprofit corporations

organized before September 1,

1957 . The taxpayer was a nonprofit

corporation chartered by the Maryland legislature in 1962 to insure

the accounts of member savings

and loan associations. It sought

exemptions notwithstanding the

statutory cutoff date . After reviewing the legislative history of a

newer enacted bill which would

have extended the cutoff date to

January 1, 1963, the Supreme

Court found that Congress had a

rational basis for declining to

broaden the exemption . "The fact

that Congress enacts a statute

containing a 'grandfather clause '

does not of itself indicate that Congress has made an

arbitrary classification ." The Court

ruled that Congress does not exceed its power to tax nor does it

violate the Fifth Amendment when

it refuses to exempt from tax newly

formed corporations, the multiplication of which might burden

otherwise valid federal programs .

United States v . Maryland SavingsShare Insurance Corp ., 400 U .S . 4

(1970), reversing per curiam 308

F. Supp 761 (D. Md . 1970).

On March 22, 1971, the Supreme

Court granted the Government's

petition for certiorari in Generes v.

United States, 427 F . 2d 279 (5th

Cir. 1970), cart . granted 401 U .S .

972 (1971) . The question to be

resolved is whether the "signifi-

:ant," rather than the "dominant,"

motivation test is to be applied in

determining whether losses resulting from a taxpayer's advances or

payments on guarantees of loans

to a corporation in which he i's

a shareholder-employee are "proximately related" to the taxpayer's

trade or business . The problem

arises where an individual taxpayer bears a dual relationship-as

shareholder and also as employee

-to the corporation whose default gives rise to a bad debt loss .

The Fifth Circuit rejected the Government's position that business

bad debt treatment is appropriate

only where protection of the salaried position is the dominant motivating force and held that where

a taxpaper shows he was signifi .

cantly motivated by a desire to protect his salaried position the re*

quisite proximate relationsh I p exists . This holding, which parado i

ally allows a business bad debt x1c'

deduction where the principal or

dominant reason for creating the

debt was a nonbusiness reason

'

follows the Second Circuit decision in

Weddle v . Commissioner, 3 :25 F.

2d 849 (2nd Cir. 1963), and is in

confIct with the Seventh Circuit in

Niblock v . Commissioner, 417 F.

2d 1185 (7th Cir. 1969).

On June 7, 1971, the Supreme

Court decided United States v.

Mitchell, 403 U .S . 190 (1971)

rev'g . 430 F . 2d I (5th Cir. 1970)

and 430 F. 2d 7 (5th Cir. 1970),

and held that a wife's one-half interest in the income of the marital

community in Louisiana requires

her to report and pay tax on that

one-half interest even where joint

returns are not filed or where the

wife prior to divorce renounces the

community . The Court determined

that a wife's interest in community

income gives her vested title and

ownership of a half share of that

income which subjects such half

share to income tax by the Federal

Government and the Louisiana renunciation provisions were ineffective to relieve her of the liability for

federal income taxes.

On June 14, 1971, the Supreme

Court reversed an opinion of the

United States Court of Appeals for

the Ninth Circuit and held that certain premiums paid to the Federal

Savings and Loan insurance Corporation (FSLIC) by a state-chartered

Savings and Loan Association were

not deductible as an ordinary business expense in the year paid .

Commissioner v . Lincoln Savings

and Loan Association, 403 U .S.

345 (1971) rev'g . 422 F . 2d 90

(9th Cir. 1970). This case, which

could affect several thousand savings and loan companies insured

by FSLIC, involved the question of

deductibility of premiums paid to

a "secondary reserve" maintained

by FSLIC for the purpose of backing up the "primary reserve" which

in turn secures the insured accounts of Federal savings and loan

associations and qualified statechartered associations . The Supreme Court held that the premium payments differed from the

premium paici to the FSLIC's primary reserve in that they constituted a distinct secondary reserve

in which savings and loan associations retained limited right of

transferability, prospective refund

rights, and certain income rights

generated from the secondary reserve itself. The Court concluded

that the secondary premium payments created a nondeductible

capital investment, the expenditures for which could be deducted

only when taken from the reserve

by FSLIC to pay losses or to be

credited as premiums to the primary reserve .

In Donaldson v . United States, 400

U .S . 517 (1971), the Supreme

Court denied the taxpayer's motion

to intervene in a summons enforcement proceeding directed to a

third-party witness seeking produc.

tion of that party's records . The

Court held that a taxpayer has no

automatic right to intervene in a

summons enforcement proceeding .

The Court noted that the language

in Reisman v . Caplin, 375 U .S . 440

(1964), to the effect that any in .

terested party may appear or inter.

vene before the hearing officer as

well as before the district court in

a summons enforcement proceeding, was permissive only . Also, the

Court held that a summons may be

issued under section 7602 in aid

of an investigation if it is issued in

good faith and prior to a recommendation for criminal prosecution .

There is no abuse of process to

use a summons in an investigation

of possible criminal conduct, so

long as the summons is issued prior

to a recommendation for criminal

prosecution .

The Supreme Court, in a 5-4 decision, held that the funds withheld

by the debtor- i n-possession during

the Chapter XI bankruptcy proceeding for withholding and social

security taxes incurred during the

proceeding do not constitute trust

funds under section 7501(a) which

are payable to the Government

prior to payment of expenses of

administration in the subsequent

bankruptcy proceeding. United

States v . Randall, 401 U .S. 513

(1971) : In its opinion, the Court

stated that there has been a progressive legislative development in

bankruptcy marking a decline in

the grant of a tax prdference to the

United States and an ascending

priority for costs and expenses of

administration .

92 / Annual Report /

Appendix Annual Report/ Appendix / 93
In United States v. United States

Coin and Currency, 401 U .S . 715

(1971), the Supreme Court resolved conflicting opinions of lower courts by holding that the Sell .

Incrimination Clause of the Fifth

Amendment could be raised as a

defense in wagering tax forfeiture

cases . The Court held that the principles set out in Marchetti v. United

States, 390 U .S . 39 (1968), and

Grosso v . United States, 390 U .S .

62 (1968), which precluded the

criminal conviction of gamblers

who properly assert their privilege

against self-incrimination as

grounds for their failure to comply

with the registration requirements

of the wagering tax law, also allowed the raising of the same de.

fense in wagering tax forefelture

cases. The Court further held that

its decision should be given complete retroactive effect .

94 / Annual Report / Appendix

Actions of Lower Courts

Civil Case s

In United States v . Johnson Electrical Corp., 442 F. 2d 281 (2nd

Cir . 1971), the Court upheld the

Government's contention that the

interest on taxes which accrued

after the date of the filing of

the petition in the bankruptcy

court is collectible after the proceeding . The tax claim in the

proceeding was paid in full without post-petition interest as part of

a confirmed plan of arrangement

under Chapter XI of the Bankruptcy

Act. The Court stated that Bruning

v . United States, 376 U .S. 358

(1964) controlled on the issue of

the collectibility of post-petition interest even though in Bruning the

tax claim was not paid in full and

in Johnson it was paid in full on

confirmation . The Supreme Courtin

Bruning held that the filing of a

petition in bankruptcy does not stop

the running of interest on Federal

tax claims .

In the first appellate decision construing section 3505(b), the Fifth

Circuit in United States v. Algernon

Blair, Inc ., 441 F . 2d 1379 (5th

Cir . 1971), affirmed the district

court in holding a prime contractor

liable under section 3505(b) for

funds furnished to the subcontractor-taxpayer to meet its payroll .

The Court stated that the uncontested facts clearly established that

when the funds for the net payrolls

were advanced, the prime contractor had actual notice or knowledge

that the subcontractor could not

and would not pay the withholding

taxes . The constitutionality of section 3505(b) was upheld .

In Home Construction Corporation of America v. United States,

439 F . 2d 1165 (5th Cir. 1971),

the Court of Appeals for the Fifth

Circuit rejected the position of the

Government that an "F" reorganization is limited to minor formalistic changes in a single corporate

enterprise and heldthatthe consolidation of 123 operating corporations into a newly created corporation constitutes a reorganization

such as is defined in section 368

(a)(1)(F), thereby allowing a carryback of postconsolidation net operating losses to preconsolidation

years of the constituent corpora*

tions under section 381(b)(3)

.

In

so holding, the court followed the

decision of the Ninth Circuit in

Stauffer v. Commissioner, 403 F .

2d 611 (9th Cir. 1968), and reaffirmed its alternative holding in

Davant v . Commissioner, 366 F.

2d 874 (5th Cir. 1966), both of

which the Government argued were

incorrect. The decision raises serious unanswered questions that

have an impact beyond the net

operating loss carryback area (the

problem areas include sections 381

(b)(1), 172(b), 1244 and 1502), is

contrary to Rev. Rul . 69-185, C .B .

1969-1, 108, and conflicts in principle with the decision of the Court

of Claims in Columbia Gas of Maryland, Inc . v. United States, 366 F .

2d 991 (Ct . Cl . 1966).

On May 21, 1971, the Court of Appeals for the Fifth Circuit, in a per

curiam opinion, affirmed the deci.

sion of the district court which had

held that plaintiff's camper tops

were not designed to be used primarily as living quarters within the

meaning of section 4063(a)(1) and

therefore were subject to the manufacturers excise tax imposed by

section 4061(b)(1) . Herren v .

United States,- F. 2d -

(5th Cir. 1971), affirming per

curiam 317 F. Supp . 1198 (S.D.

Tex . 1970). Nine days.earlier the

Tenth Circuit affirmed a lowercourt

decision holding that similar camper tops manufactured by the plaintiff therein were designed to be

used primarily for living quarters

and therefore exempt from the tax .

Bill Woodward, d1bla Bill Woodward Pickup Campers v. United

States, 442 F . 2d 333 (10th Cir.

1971). Since a conflict has been

created, there exists the possibility

of Supreme Court review.

In affirming per curiam the decision

of the district court, the Court of

Appeals for the Eighth Circuit, following the Tax Court's decision in

Estate of Viola E . Bray, 46 T .C . 577

(1966), aff'd per curiam 396 F . 2d

452 (6th Cir. 1968), held that ex .

penses incurred by an estate in

the sale of property may be offset

against the sales price in determining gain or loss for income

tax purposes even though such

amounts have been allowed as a

deduction for estate tax purposes .

Commerce Trust Co ., Exr. v. United

States, 438 F. 2d (8th Cir. 1971),

affirming per curiam 309 F. Supp .

1317 (W.D . Mo. 1969). In view of

this decision and the number of

recent lower court decisions all

adverse to the Government, the

Service reconsidered its position

on the "Bray" issue as set forth in

Rev . Rul . 56-43, C .B . 1956-1,

210, and in Rev . Rul . 71-173,

I .R .B . 1971-14, 12, it was announced that the Service would fol .

low the decision in the Bray case

and that Rev . Rul . 56-43 was revoked . Expenses of sale under the

circumstances described may now

be used as an offset on the estate's

income tax return and as a deduc.

tion on the estate tax return .

In a case involving the interrelationship of the tax laws and other

Federal Statutes, with particular

effect on the credit life insurance

industry, the Tenth Circuit reversed

a decision of the Tax Court and

held that premium income report.

ed by a credit insurance company

could not be properly allocated as

income under section 482 to related banks which had initially sold

the policies in connection with

loans to their own borrowers . First

Security Bank of Utah v. Commissioner, 436 F . 2d 1192 (10th Cir.

1971). The Court held that the

rendering of services by the banks

(which the Court called "generating" income) was not sufficient to

sustain an allocation of a portion of

the premiums to the banks from

their controlled credit insurance

company. The Court of Appeals

held that the banks did not earn

the income because (1) they were

not licensed insurance agents ; (2)

they were impliedly prohibited by

Federal law from operating an insurance business; (3) their cost

and effort in selling insurance was

negligible ; (4) they had no underwriting risk. This opinion i s in1direct

conflict with that of the Seventh

Circuit in Local Finance Corp . v.

Commissioner, 407 F . 2d 629 (7th

Cir . 1967), and a petition for a

writ of certiorari was therefore filed

with the Supreme Court by the

Commissioner on June 18, 1971 .

On June 24, 1971, the Court of Appeals for the Sixth Circuit reversed

the decision of the district court

which had sustained the longstanding position of the Government that the accumulated earnings tax imposed by section 531

is a "deficiency" so that interest

begins to run from the due date of

the corporate income tax return .

Ray E. Loper Lumber Co., Inc. v .

United States, 444 F . 2d 301

(6th Cir. 1971), reversing -F .

Supp -(W .D. Ky. 1970). The

reasoning underlying the appellate

court's holding that interest begins

to run only after the Commissioner has given notice and demand

for payment was that the accumulated ea.rnings . tax is not selfassessing, i.e., it is not a tax which

is required to be shown by a taxpayer on his return . Now pending

before the Court of Appeals for the

Ninth Circuit is the case of Bardahl

Mfg. Corp. v. United States, 25

AFTR, 2d 70-429 (W.D. Wash .

1969), in which the position of the

Government was sustained . An affirmance would create a conflict

with the decision of the Court of

Claims in Motor Fuel Carriers, Inc .

v. United States, 420 F. 2d 702 (Ct .

Cl . 1970) wherein it also was held

that interest does not begin to run

until after notice and demand because the accumulated earnings

tax was classified as an "additional amount" or "addition to the

tax" within the meaning of section

6601(f)(3). This issue has a significant affect upon the numerous

cases in which deficiencies are asserted under section 531 and it involves substantial interest revenue.

Statistics of Income

Reports Published

Corporation Income Tax Ritturns ,

1967 (250 pp., $2 .25) Individual

Income Tax Returns, 1969, Preliminary (31 pp ., $0.25 Corpora .

tion Income Tax Returns, 1968,

Preliminary (30 pp., $0 .30) U .S .

Business Tax Returns, 1968, Pre.

liminary (37 pp., $0 .40) Individual Income Tax Returns, 1968

(268 pp ., $2 .75) U .S . Business

Tax Returns, 1967 (382 pp.,

$3 .50)

Annual Report / Appendix / 95
Statistical Table s

445-070 0-72-8 Annual Report / Statistical Tables / 97
Statistical Tables

Notes:

All yearly data are on a fiscal year

basis, unless otherwise specified .

For example, data headed "1971"

pertain to the fiscal year ended

June 30, 1971 and "July 1," inventory items under this heading

reflect inventories of July 1, 1970 .

In many tables and charts, figures

have been rounded and may not

add to the totals which are based

on unrouncled figures .

Internal revenue districts are listed

in this section by the names of

headquarters cities. Each district

is identical with the boundaries of

the State in which the headquarters

city is located except for the States

recapitulated at the bottom Of

tables 1, 5, 6, and 14 . A map of

the districts appears on page 81 .

Collectionsi Refunds,

and Returns File

d

I

internal revenue collections by

sources and by internal revenue

regions, districts, States, and other

areas/100

2

Internal revenue collections by

sources and by quarters/107

3

Internal revenue collections by

sources, fiscal years 1970-71/108

4

Internal revenue collections by

principal sources. fiscal years 1940-

1971/109

5

Internal revenue refunds including

interest/112

6

Number of returns filed, by internal

revenue regions, districts, States and

other areas/1 1 3 7

Internal revenue collections, cost,

employees, andU .S. population, 1942

through 1971/114

8

Internal revenuetaxon manufactured

products from Puerto Rico/1 14

Alcohol and Tobacco Taxes 9

Establishments qualified to engage

in the production, distribution, storage, or use of alcohol a nd alcoholic

liquors/1 14

10

Establishments qualified to engage

in the production or exportation of

tobacco products and cigarette

papers and tubes/115

11

Permits relating to distilled spirits

under chapter 51, IR Code/115

12

Permits for operations relating to

alcoholic beverages under the Federal Alcohol Administration Act/115 13

Permits relating to tobacco under

chap:er 52, IR Code/1

15

14

Labe activity under Federal Alcohol

Administration Act/1 15

Stamp Taxes 15

Number of occupational tax stamps

issued, by class of tax and by internal

revenue regions, districts and

States/116

Examination of Tax Returns 1 6

Number of returns examined by class

of tax and by internal revenue regions, districts, and other areas/120 27

Additional tax and penalties recommended after audit examination by

mended after audit examination

by class of tax, and by internal reVenue regions, districts, and other

areas/121

Cases Receiving

Appellate Consideration

or in Litigation

Appellate Division

18 Receipt and disposition of cases not before the Tax Court (nondocketed

cases)1122

19 Receipt and disposition of income, estate, and gift tax cases petitioned

to the Tax Court (docketed cases)/122

Office of the Chief Counsel 2 0

Processing of income, estate. and

gift tax cases in the Tax Court/123 2 1

Receipt and disposal of Tax Court

cases in courts of appeals and in

Supreme Court/123

22

Receipt and disposal of refund suits

filed by taxpayers in Federal Courts/

12

4

23

Decisions of courts of appeals and

Supreme Court in civil tax cases/124 24

Receipt and disposal of collections .

injunction . summons, erroneous refund, and disclosure cases/124

25

Receipt and disposal of insolvency

and debtor proceedings/124

26

Receipt and disposal of miscellaneous court cases, lien cases not

in court, noncourt general litigation

cases and appeal cases/125

27

Caseload report/125

Cost of Administration 2 8

Obligations, incurred by the internal

revenue service/125

29*

Obligations incurred by the internal

revenue service, by appropriation

and activity/127

30

Quantity and cost statistics for print .

ing/127

Annual Report/ Statistical Tables / 99

98 / Annual Report

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

areas

Up thousands of dollars. See table 3, p. 108 lot far rates and further breakdown of national totals by sourcesi

Internal ariterme it t * I St I

as

Individual income and employment ta -

and . Totalintermal

' Palo., . Wh income ,, income Tax

(States tepees' Mini try single district, initiated In

=

.1 scona, tax hot withheld withhold ad 1.11-cl 11raropli,frinen t s

peeentle-s: total for the, State, shown at bottom Total and sell-e.- cild-p

I

.1iremen h,.rxace

.1 table) Turrynee"t

Tax,

1 di'ancey,

(1) (2) (3) (4) (5) (6) (7)

ennead I in as . . . . . . . . . . . . . . . . is, " Lee 10.319,50 144,672 .111 26, 2", Us M, 4", M 1.043, . 972,4 0

elex- War .. " any.. . . . . . . . . . . . . . . . . . . . . . . . .1. ?a.. x . . .r 1.1 ry., .,-.all se spea so .1 225,5 0

Albany . . . .. . . . . . . . . . (See (c) below) . . . . ---- 2.085,515 336 : 5 1 5 1, 693 OGO 171,029 1 :506 :662

:

4 33 10 .97 6

Augusta. . . . . . . . . . . . (Maine). . . . . . . . . . . . . . 492,591

3 5

64

.4 3

99,814 93.171 003

299

4

Boston N 3 "7 . . . .. . . . . . . . . (Massiumns.1h)._ .

Brooklyn ------------ (See c) balow . . . . .

5,522,954

3.813,037

8

3'

:96

381 327

13 :124

9480

770. 994

834 847

:

3,417 25 5

Z 335 . 406

b:

3

4

12. 26

30 : 102

~ ~ 21 43 3

BuffilD ...---- ------ (See ) below 3.331 11 631 11 2, 1L1 11

:

421 131 2,011 1 11 2~

:

18 IT

. 2

BurfiriRtim -- - ------ ternment) . .

I

226: 23

2~:

89

' E :3

05

4S, IT

58

1,3 :0 73 T . I

H a 1 .25 3

Merff .a .rd . .. . . . . . . . . . Conneclucist), _

hatta. .. . . . . . (See below) ------ --

3 111 072: 112

2t : , 29

598,27 Ey" '591 1~ 11 . ~7 3 13 ,

.14, '8

113: 31

590 ON 2. :3832 :172 0,022,

. 21. . : ' 71,

2

.

M,

,mouth.

. . . . .. . . . e. rapshi,,) 41 987 53,648 381 .737 71

2 3' 4 1

26 7 1

'

re ~r

Ifibutc.. . . . ~ .. . .. Rhode Island) :

. .

. .

hild

.

.'allu . Ria, ill . . . . . . . . . . . . . . . . . . . .

:

8 57 168

': "

135,06 1

4. : 3

684 .007

4 15 2681

9,:

142

l"'650. ask 540s

S

4 go, 63

a' .

. . . -

3 311 333

2 3

scal 19.

118 56

5 7: 3 9

Baltimor e (Maryland and D.C .) . . . .IS. 14 "40

Newark. . . . . . . . . . . . I N ev, j . ...

5 057 72.

7.256,972

11

1,31 769

1

5,20 0 83 2

.

1 .0 82 .81 5

: .8

4 1 28, 78 5: 591 37 , 548

Phil .del Sam(a) ber w) --- -

"'1'" ' 1" "'

3:

8' 2'0

: 95 0

' ' 1

9

36

2

P 4.310,211 174.289 38 088

ithstpur t (~) 11*) - - -- -

g"

b

fS

4 92: I ll :3 II, 9SI 3 : 44 7,112

:

i ;j.. _ - - - - 484 305 2,921 .932 14,110 AS 05

Rich- r it. : V

Wilmington . . . . . .. . . . (Data ..)- - --------

'

1 29.008

50,389

341.280

426,054

2 .046

6745~ Z"I

.267

455,963

104,878

1, 524 . 11 1

564, 448

51 .7817 13 49

4 : 31

aricathani Fle,lam . . . .. .. . ... .. . .. . . .

- - - 3: as 1: inMS

09

" "121 :'7INS

6 7

I " 2:2S3 :3I 19 a yit - '. 4"' 29: Ill 1 :'M.4 ::~ "1 317 :"* 1'7 :'29'3

.,,,, "-"'a'-

- -

B (AI .1b.ohT . . : : : . 1, 491,115 180,243 1 .178,253

U

2

" "' ""198

9,060 1 141

Columbia

~Sno!hCC h a m: "))-.- -

11'1~3: l

41 : 4424

12: 11

1 0

6

7 1879

.65,48 1

2 277 975

177

457:141 '3 1 '1970 : 9'81

9

1 1 3

Z89

7 6:

34

21 .711

,r x j a

,on

i` '` "`pE' a7' ''S " 0'

, .

' ' " 3

113 3'3

.

1 74

.

4 303

Jack

.

n ~fl fi-: ~Flori da) CI I

24

2,0 5 5

59

3, 4 73 64 4

EoSo sy, :

2. 3 3C 399 : 40, 22:492

.-yanNashville Tennessee) lawall, . . ---- 21023,831 308,691 1 .625,638 385~674 1,225,214 S54 12,896

. . . . . . . . . . . . . . . IT: 4111: 1 1. 7111~

:0,4 112:141 31 3 1124

919

3,111 1 5,3:149,1 al

63 653

72, 33894

1 .

Chi 11 rl~ 211 : ' (,:: ~' bit

: - ::

ity .

of el nd . -

3 959 53.

7,277,872

:

'

984,759

.

5,404,923 7Z3,649

,

4,612,799 26,698 31,7SM7

Det

"I

1 9115.441 1 .641,460 7,722,903 994.369 6 .657,691 14 7

2,

56, 115

. .

(ferch ..

India hapol

3: 94

3 3

1 1

5 5

2 I , IS3

4

56li . . 2 .319,14 1 :656 17,337

Total life,--

'" l l ~

71 .: .71

:

32 4 59 5

:

168,243 301 115 826,505 28,614 7:621

.h.Pweart Refull .,k-bth9,,:,,.: . : : (W,m V rry W;)~ . . .

. .. . .. . .. .

733,516

23,46

,,

117 .90 3

5,031,303

583,857

U, U2. a as

:

1', 167

3 . PS, 5%

4

27,9 %

17 . 541, 1"

49

Up, W

3 68

C

1 " 9

7

Ab.,dram.,_ . .. . . . (South Dakota)

. . . . 241 :4Bg 25,256 203.544

1

1 .391

1 1

130.9 1 2 I ~ : . Chicago :

. _ _ , _ (Sao ? b .fo .) 12 111 329 . 2,233,227 8,879 195 1 .321,166 7, 373, "2 114,853 ..ISI D" Mc,aes__, (hywx~ (Nort 6

------ - -

Fargo ----

'kot')

1:

%8 022

246 :

081 252 939

22:144

1 . 24Z 541

21 2,47

6 383~7131 76 34

1

85 41 : IS

13 569

528

30

7,71

1 .1493

Milvexple.. . . (Wisconsin) 3,377,557 586,z89 2,489,730 444 119 2,0ZG 133 616 Is 092 Thershe In

(Ne railka) .- . . .

' *

1 14'

2 5

828

150

ITT a

Z 29

~

223

495

6

111

1 1

4' 121

:

5:049

St . Emiii . .

S . Paul . . . . . . . . . ~Mhh="tai_- . .

5 :0

74 :608

3,527 .583

:

796 268

bm529

3.759.892

2.723,63G

572,29 2

404,634

:

3

. 09S I' D

2,210,411

o .

2

90.438

25, 55

)

1 2 2 S gfreld pan . . . . . . . (See (b) be ow)- . ~ . _ _ 2 .165,314 147,11 1 171 491 317 ' 811 I,TT13,667

I. "I

1: 9

3

awsthavers R. .. . ... . . . . . . .. . .. . . . .

17 .7. an

"'

.82

se a :~.': .,

"re"I 2* 1 ", 12" ins' . 61,

A thertionqu . . . . . . . . (New Mea

1

214: 31 316,902

. :

1 11

276 TITO

:

to

2 .1

A it!a ---------- :, : . t1al(If It In. )

C ey"he

. . a _ 4, M 0 2

171,368

60EEEI

'E'S~'31 3,311: 1

T33 839

121 946

Sl :

2. 518 28 5

"1 "

4,336

C 2

22,32 ;

2o M77 ;

'So. (E)

Dallas. . . . . .. . .. .

Deaver . . . . . . . . . . .

.""do) ----- -----

3,784,60

5

2 .731,766

629,348

199.547

2 .911 .98 8

2,309,502

758,15

ZG9 . 7-9

2. 118 921

2. 023, 353

13 , 3

8,500

.

7 14~

IT

Little . . . . (Arkansas)------- 176

US " 'S` '43 '3'

169,

o

31 117

40

4 1

:

4

1~

Me. Orleans ---

(O l )

' .' :

4.1

0 4

2.: ~ 1 E,4 52 :7S4 341 . t

1'

068:20 1 1, 113

Okishoure ' city ( llas ona )i 1 .1144 82 5 27 ' IZ

2'502 ITS' 27

9

1

28VEIG9 got ~ 20 1

IS

8 .7~

Wichita- __ __ 7 ( (K

a a

.,). . . . . . . . . .

-.- ast.l . . . .- _ __ . . . . . . . .

1

. 276 : 20 5

24, 90, Us

1 75,028

2. INS, 333

: .26. 376

11,761,33"

299,26 8

4, 004,4117

663.205

15, 550, Us

58 .20 2

-

5 . 0

a

Anchorage . ' 13 7 3 3 "a Idaho . . . . . . (Alaska) . . . . . .

' --- ( )

1 139:4 1

4

7

463

1 5 98 4

313

169

.00 7

0

2

'

2 1 .1,3

77 : S

14D 22

3310:6361

S)

3 . Don

,W.: : :

: . : : (Man a IT el

290

. 754

:

30 493 1

.

247 7

ITS, 680 159.C 7

1

513

1 ,

439

Honolulu . . .

. . . . : all

)

GOHEC5 74,022 510 :325 95,383 41

1

..

19 3 , &

.

. .

.

.

Los Angeles . Sao (a S, S58'

29 2

1 .3

1'. "

1 .131 31 1, 1 3

1 "

1,093

'3'

54~

"""I'

~Ag=

Portland: : : .

994.095

1,343,998

ITT , 75 1

158,664

:

1 2

"'

21 311

201 556

241 485

538 1 13

14 17

1

20 5

1 .107

5 .2M

8 .07 i

Beer . . . . . . . . . . . . . . . Nevada)- .

"

121.111 10, 7 71 33 E

: C

25

:

94 5DO 3

IT

244: 3 2 : 1 1

S oft Glk, City__ _ .- (Utxh)__- .

5.0 421

17,111 411,41 1

1 1

514 331 .068 1,032

' .

0 ~ S n F hi

" ")

, (S,.g) b d

. - : '

7.671 615

.7S

7 '

2

S, 4 3 7

3M

1

., 23,757 4,758 .318

7, 7

78'

35,5 7

IF1

:

I

Sea U . . . . . . . . . . . . (Was infuse) -- -

.M- , at ..... .. I .11-ral . . . .

7

2 3

99 81 5

"' -!I

291 :126

" ~1al

1,9 IL 101

I' ' . "S:

401,764

1: '

1.49G,GG6

1 .. .1.

' :

58 4

1, .

12 . 6

" 1.!

3 P. 1. . . . . . . . . . .

Other . Hi

_

271 :3 1

1 .278,011

1 6

65,454

176 16 0

1 . 192,555

169

76,976

0

162 %

1.113,814 1, 53i

!

2

,

uhdi,trlbut ;~

Federal tax deposits and depositor receipts 0 226.656 -23,379 117 419 267,368 22 3!

G - so I r"e .luteacalingoll, & excess Fr'CA credits 7 634.643 25,451

S IST :

~ Trans! . .

.. J 1 . Government .1 Guam-

_

Withhold taxes of Federal employees- . . . - . . .

-10,092

-288.741

. . '

. . . . . .

-10

-2 8:74"11 . . . .. . -_2 gill~ 6714 I 1 . . . . .

Chunri 9 anossuel tot Excise lases-eviation tria l

Force and N .

.. . . . . . . 202

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

Totals for States hot shown abov e

Cifliftinnis 7

' ' ' '

1 1 1 1 j1 j 3 34 113 2 NDO 646 0 % , 624

4

79 88

llinois---

N : 276 :643

': ES : . S

I

o 57 ~

: G

.,

3

S o~ " :8 :

49 2,658

1 17 :

8 30 78 4

N w York : . 31

3" "

I

1 4

" "

20 331

"

14 311

1 '

1 11 1 .11 1

. ,

11, 3 162, 51

(d) Ohio . . . . 237 11 : .

E :

74S 7 .3

: ,

8:324 13

:

2,7 "

,

1:

S :98 2

-3

f 27 .287 57,36

I.)

Pennsylvani a

Texas

71S~ 7

"IT :77 .0"7 1 :1221147,9 1' . -

.

: 8112

6 7 , ':276 7

:4

7% .5

7, 312~ 13

4,631, .7

188,40 0

17 .97 .

T

99

64.

43 .09

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

areas-Continued

(In thousands of dollars. Sao table 3, p. 108 lot U, rates ad lutthet breakdown or national total, by soucal

internal revenue r,rions, districts, States and othe r

Shat x represented by single districts

s

; ess',

muh. ad I, totals I., other States

shown at wlic. .1

table

state far

8)

ift ta x

9)

Excise taxes

lot" I

.1 ca tmn's

11, 26,30.

37, 40 ad

to)

Al .h .1 taxe s

Distilled 1irI1 1111,

Total

I

- ~ ..,u, .1 are'

Total Domestic Rectifi .a

. by calion thanal

c.stano

(11) (12)

(

13) (15) (16) (1 7)_

United Mleal, tated . . . . . . . . . . . . . . . . . 1. 3~, "1 411, "2 16,1171 . .51 A .S...'ress 3, SIS .4V 775 .191 2. 703. US 25, M U, U2 4.2

yx... Alt vnx .~ 7ion- . a .

' ' ' " '

641: 112 411,2" 0,11 212. ;!3 1 . 1' .19,0

'

L.

; i

A ise.6

26 . 70 s

1 11

4: 111

3 9

25 : 18 1

IT 75s

16 259

2 114

12

90

2

59

---

i ' -

2

23 ousurn August, : (M se '415 : '1 'S ". 8S

6

'9 :67 3

9

.

179, 115

:

1

64 6% 9 1,071 72, 417 801 367 1

Brooklyn.. . (So, (c~ b :j~~

99,585 7, 41 20 712 77. 188 14.781

1

4,410 44

3 2

3 1

311

6

a 1, , ,,

Buffalo . . ----- - -- IS, . . .. 70,225 8,078

0

7

'2 : 11

11, 111o 31301 1 :~ 3 0

In.,

11.,flon:----- - (11.111c"tj) .. .. . . . _

.art

nd . C. ne c~jj

. . . . .

5.373

108,699

46 1

6,224

.1 3

254,705

S

75. 118 74, 151 . . . . 7S

: ' "0

211

3 Manhattan (Sao Q below) ------ 111, 1 11 1 .3 11 1 .056,79 22, go3 21S.

IS ' I(ill HID 4 .4 1

...3 31 1

Ports IN 111irll -- -

Brad

c island) ----- -

P ... Im""- once, : :~

~~1

124' 313

.. 9

1,342 1 14

3

' '4

": Pi,

S, o9z

251

79

223

i

7

:

1

Al .17. Its " . 111 1. 542 "1 111 11 1 1" 131 11 thap I 1~ 1 1 1 is I. Atf

5

fly .

"It " 2

'6 2

'E

ST,

345

255 : 742 2,,: S 67

: g5o

' 2, 2

1 5 3,516

238

4

"

7

.rai -------- -- (New Jerser) .

Philad

" Ee ' 0') _ ' Il a - -- -

1 : 0

11

1 5

3

1

: 86 1

5 14 1

516:809

111,731

270 .78 5

"1" "S

170,13 1

'to' 1 "

. . .. . 168 58 5

O'

1 1 1

3

~ bxI-) '

pltlsb. ~' nu - - 2S :p (a

'8: 4

05

13 : 3

58 390.424 88 .934 66, 39 1 ~: 421 7.7 3 11 1

Ri.hourral ------ (Virginia)--- 11 2 4

1 " .. .

4 1 . 17 1

'. 1

7

'

5'1

2 23

35 Wilmington--- . . . . . (Delaware)-- . .-,

:

.

IS 2 4 131 2 7: 910

~ . 6

3

-

. . . . . .

a ,

silith...t Best.. . . . . . Sea 'T' .

. s .

'2' '' "7815 11'2:29"4 75' :"24'1 5 0.5'0

a .

35 96 68

(

A 1,,ta

Birmingham . . . (Alabama) ------ -

39 .31 9

20 .365

4,596

2,611

3 1.

112 626 2,414 2,249 Z, 126

,

55 - . 1.4 11

26

Columbia .-- ~Schrtla Carolina) ZI . 418

1 : 52a

22 :886

2

Exto

2 903

93

'

1

-- ----- i t

2

. . . . . .

6 ... nsb. . North arg

I I I

' : :_ : ~ :

45,98 2

4 124

3 1 17

1 980

, 18 1,28 1

26 90s

8,

394 214 . . . : : : : 2 112 1434 1

( s,

J.cksoh . _ . _ MIM

Jalk-di . (Fl.irids)"') -

1 .

' ' ' ' '

.

" "'1

,

'63 ' 1 ' 8 52

42 17 1 32.910 9,069 15 2132

. . . . . . 1

Nashville--- . . . . .. ffehnrs~.ij: : :

.~ 30 : 7?Z 3:034 55 : 7 18 Ir.129

~ '

26 15 . . . . . . . 26,824 . . . . . . . 54 3

C-1 .9 Bassxei- ------ -------- 339, W N.S13

S' W ' W

1. U5, say 1,41 .461 M .93 174, us

6

3 133

4

11 .4.

1 273 1"264 '

8 C incinneil (See it halow) . . :

Cleveland uss (d) below) - - -

59,03 3

1 1 111

9.622

1.4

54 5 2061

2

'

9

166,1 6

12

1

"'V : 4115 "

-

ol . iiG

6:

60 3

, 11 G

42 0

. . . R - -

` d`T'a r`

to ~ : 5

''

1

5' 93S '

. '00

40 21EI 11: 72 2219, IT51 165.348 7 654

1

51 3 59 7

(I .

i ~ .r :~ _ 53, 7 11 6 206 114 231 111 171 311 111 29 77 7

5

745

3 753

28

5

1 1 5

Louisville- (Kent "Ity) -.1 .

P.,kahrli (Wast"V1191mi)~ ---- ----

' 3

10, 596'9

, SS: S

1,334

1, '87: IT 5

19'8 531

,78:

4,725602

, ' 67: .

4,639

658 .38 8

4,593

, 1 4 3

""' " ---- -------- - __' -_ a

..

"'. ". .' .I .EM" 7_11 "i' say

9

e'r. as . ". -1 ' . T

53

Aberdeen Chi ---- ---- (South Dakota) - below

.go

177 398

310 4

44

9'

777: 416 185,489 171, 1- 572 4~ 117 .119

. . .

537 67 4

. . . . . . .

. .

. ---

- __

~ !

D.s, Not- . .. . ..

,

38,862

,

3,056 30,623 427 183 . . .

I

. -

8S,2 1

t

To "sh" ------ Nort Dakoh).--- -

Milwaukee (Wisconsin)

4,2745

3

6 23

9

'9'

"

94 8

240 :

1 2

124

147,4 31

108

1. 1.

44

296

. . . . . . . . . .

11807

.

a 697

Omaha (Nebraska)- 22 B24

2:

.12 112,%2

3

7 . 1 3? -

'

71 17 1 11 1 431 311 131 11 1 1l~ 114 7 114 7 : 471 1 . 2i 3 34 S

R P..1 ------ (Mi n a,,ota)

at:

4 494

225 13 7, 6: 0 52: 23, l 5, 3 703 : IT ~ I Ifl

263 Sinsinald .. (Sea

(b)

below) 3S. 800 2,793 297,408 254,372 22,453

. .

. . .. . 719 .785 2,400

117

V ) 7 sets

I-vat Rea. so -- ------------------ --- -

Albuquerque Nvv Maxim) . . . . . . .

335, 11

10, 06"Z 1 11 1

1,763,02 a 206, Glu774t 46. thei 77Cl ..115 1 :, 306

705

2 1, ?

6 . . . . . . A --- ~

.,I,a ----- --- Sao (1) below) -------- 95,263 16,380 913,139 66 .549 21,275 19.9 8 .153 162 3

Ch,yeat--------- (Wetri

, - - - :' : : ~

5,748

4 411

"

493

43 7

I '

19,358

43 41I

50

2 1

IS '

4 2

351 14171 1

bel, a *) -

'"' 'l ' )t -

"

25: 3

S

3~ 34

1, ,A

3: 4

ff~

: 7 17 7 . . . . . . 174

o 0

)

(Co ,. i . . . . _ _

LOO. Back ----- (Arkansas)----- I 1 717

.

1. 111 17, ISI 11

' 2 . . _ 2

:

44

350 1 new ) -

Orleans . . .- (Louisian

a

Oki b

Oklahoma City.

'''" a

3 5 707

3

2 '1

4,58 3

1

74,306

'37 34,

an, 13 3

8

769

23.655 9,471 13,818

4

.2

57

'3 Wi Ka xxn . . . . . .

.hile.__ ~,

wer, Reepule, . . . . . . . .. . . . . .

3 5. 38 1

.1.4.

3 : 1 0

11,139

31 5: 1 1

1. 1. sa

6

548

6~.' 2ss

41 1

'a, so 1112. an rax, 1 .

.I 2 a Anchorage . . . . . . . (Alaska ------ 606

47 :

3 952 180

1

74 1 35

"_

.

:~ : :

39

1111 (Id.ina) --- -

4 .

. .

L 234

': 1' '

60 27

1 092 . . .- 2 1 008

- _

6

2 7

7 ,

H'

a Montana)- -------- 7, 731

'

So 3 956

"

1 11 4 3

'1

,

34 2 '1

.

14 3

S 9

7 :N ' 1 '74 7' 142 :1 159 74S 10 631 31 . 1 5 9

66

641 167 657 1

Los

Phormi . . . . . . . .. . . . (Arizona) . .-- ---

249 1171

43, 753

1 , 1

2,057 61586

,

: 457 152

* 3 3

,

. . .

i

141 Pitrtland . . . . . . . . . (Oregon)--- . 11 174

'

1

: '

35 :11N

1

3,143

75

6,864

7 7

1,567 S,Z34

71 1')

Ron .. . . . . . . . . . _ (Nevada) -

0

IS :

'4 2

'

2 5

2

1

'

.

14

E.

15 ' 0 2 , 5 I' )

I P11 .. . . . . .(~"Ixho;), 6.1a;v; , SaII

, 1111 . . . .

S a

ancesics

17SHO'7'O IT, 780 7 : 222 69 372,29825 251,4775

"U 11

3 1

`4

&

16

51 1

Seatue ------------ (Washington). . . . . . . . . 41,082 8,522

1

47.934 66,291 23,680 20 1 5 3 : 222 4 174 1is Na

as ow""""' 15"Is"

Sea 11

11: "151 "~10 13 3

41

so So 205 63 Puerto Raoth.

4

15,37314

'4311

4,136 V) . .. . . . .

undistributed :

Federal tax

it a

posits and depository rec,jas r . - 17,395 ---- . . . . . . . .

Giisolumi, lob No Ong all, & as ..F IC A credits

I ransferned 'to =ei mandat of Go, in .

. .

.

. . . . .

.__ .

. . . --- - . . . . . . ---- a --- -- - Withheld taxes of Federal employees--------- ------- . . . . . . . . . . .

I

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

Clearing account for Excise taxes-aysadI'l l

. ad 61-04 F.N. .nd Navy .- . _ . I I. . . . . . . . . .. . . . . . . . -2C . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .

.

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

T,hAx (or states act no*, above

) Californi a 429 170 28 557

'

131 117 311

. . .

13

N 2" . . "

7 1 5

- ~b ~

216

: 198 46: 887

1 :

74 924 439:860 393 : 625 4 90 347 : S15 2. 13.

('2 865 !26 5

New York- . -- ---- 506

t2

"

~ 8 'D

: 1

362 06

233 959

4 :642

3.

6'

:

346

6

2

63

4 5

4Q

: 2337 1 39D 2

I )

Ohio . ---------- -

Permsylv a _

. ..

11 17"3 2T21 i " .325 1 . INS', 155 " 5 " o

250 151

23 121

2 0

171 661 -- -

9

73,96

,

1, 977

.7

1) :~ : ~ ~ : :

Texas. . . . 79: 694 31,817 1 .056,540

: 4

96 72

:

21 626 .928 1,373 .1 . . . . . .

100 / Annual Report / Statistical Tables I Annual Report / Statistical Tables 1 101
Table I .-Internal revenue collections by soumes and by Internal revenue regions, districts, States, and other

areas-Continued

lin thousands of dollars. see table 3, P. 103 for tax rates and further breakdown at national total, by sourceil

Internal revenue import districts States, and other

sWated by im ' Ind.-

""' ln"'.V:~Ih:re

far Z., distric t

cated I let ; lat-11 States shown

at bottom at bible) Tota l

(18)

wines, condials, at,., latea

lmrrted 1,

("Ilacted

by C.d .ort)

(19)

C .-I.,

(20 )

thal." astax"...-.I. ~ --------_---- ------

157,27

Noich-Allwati. Raiders,-------------6 .1. a., o.6 1 13 :u, .

Alba, 530 uirar~~j 218

524

A fl.aui.o._' ".

Boston . . . 2.030 1. 551 1.2

4,821 ---------- (T..ss'1c'buet:

.t 18,074 . . . . . . . . . . . . a

a UNI

. . . . . . . .

.

. (Sao (,) balme I.:

Ra

rlin,01 - - - . _ : : - - - Ieram 44 ------------ ----- 186 .a,"* 'it :~ Ica a.

Man1AH1n,: . . : : ---- :~ ~1 , %).mb ON ------ 6: ..

. 1,287

,.,I id He.

2 2

Providence----------- (Rhode Islard) . 4. . . . . . .. .. . . . . . .

Mid At -11 R -. : - :

"' a '

. do

B.11mm, a

.

D.C .) : 1 703 1: '416 26t

Newark ---- (New )also 10.692 _ _

.

: ----- )__ . .

1,475

-

'1 : M72

Philadelphia . . . . : :*_ :~ (So, (a) be aw), 32

1111gb . . . .

. 40 ----- I : 3

R c u :___ . and (Sealintrif."b") ------ -- 1... . . .

(Vir

wiltaingto ------------

'hwax . I'mar

Atlanta (Gaulplr; -- ----- 66o . . . . _ .- 582

38 36 6

47G

. . . . . . .

. . . 344

(South C .' ;jj~j

. ..

-----------

. . . (North Car~

'),.'r, 162

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

--- 2,477 1-68

Nashville 3 . . . . . . . ... . . . . . . . . . . . . (Tennessee) .-

. .. I . .

45

'it"* . . . * ----- * ----- ------ M.circle . : :_ : : 1, . if 4 Cleveland (S I .jdl'b`.:n*W):-_ :---- 1:16 3

.Iollo Detroit . . . . . . . .

. . . . . .

BAl"Ibi"'). . . .

3,092 _ :l,o3a

5

India" d

- - : : ~'~nar"WN)0: Got

Park bang-_ __ (West virgmiro . ._----- 7 ----- -: : :

firlunawat Ali I lion,111.- a . . . . . . . 9,730 ~'Iavi

endeen. . .. . . it ---

. . .. . (S .-tho'k-ta 6.09 49

ChIcall._ . . . .. . . . . . Is . M bd..) . . 59 . . . . . .

54

Bear Main ..

.

. . . . .. . . .. (lova) ------- _

~fmrdi Dakota) . A i , . .

Mile, wincouniar, 383 265

52

Omaha. . . . :. . . . . . . Nebraska). . . . . . . . . . . . 43 . . . . 41

(Missouri) . . . . . . . . . . . . . . 1

.33" 11

21

S;: 'P'.'U!'. :-. (Minnesota)- 3 1

_Springfield --------- i__ (See(b)bWowi:_'.: :

1, 6

4'25 th.- Raquirsen ---- iti . .

i~i) :: Albuquerque * : '13'

~s'aw(I')"bdma) 973 66 Austin

ChBarus, (Ityme 97 (sea --------- V)

Denver. : . . . . . . . . . . (Colorado) 8

472

LIUU . ki~,__ : :_ 4131 He.()do.

Oklahoma city wic . kitilmona)._ . .

K

.

a

.,). . . h a., - jiB 1,03, "1

vvaniaxxr~ 2

Anchor,, ldlhui~,) e.i- 2(Mae'. . . . . . . .

I

Honolulu . . .-------- (Hawaii)

533 2

1m; A911111 --- .(a Iwcawie : . i

s 3, 9' 970 842

.a,x i

1 36 _'. .j ; .~A, na)-. .

. ..ad . . . . . . . . . . . . . . Oregon)- 172

1 -, - - _ Ran. . . . . . . . . . . . . . . . . (Nevada)-- ----- --- : 3 ----- ------ -----------

city dr -- -

,an F (a) below)- _ . . . 'Ofl ;) ---- - n6

.

Sit, 2'.`- ) - - - - - - -- foia

am

St

.. is I I "a . 3 '516 1 ;, .e (Washington) ---- 712 lo5 1

Puerto Ri . . . . .

. is

.

.

. .

r-on'

. . . . . . .

.

.

.

.

.

. .

.

. .

.

. . .

. . . . .

. '9 9

other

llmlistfib~t;a : --------- --- ----

Federal fix deposits counal .I''Id . , , c

mrsl-d ]a 1-miWarl at Gu . . . . . . . .

Withheld fall, .1 Federal employ,-,------

Clearing amount for fache taxes-sation fuel

and oil-Au Force and Navy . . . . . . . . . .

. . . .

(a) to California. ..

Illinur------

~,) N,* 1111 -----------

d? Bid, a "busii ;a-aia- - : : : :

(1) Texas . .. . . . . . . . . . . .

105 057

6

: 615

3f, 599

'W'7'

1,070

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

. .. . .. . .. . .

Alcohol U.-Cmilinuix !

QRcu

Uonal P'-

late, Ir

(21)

Total

(22)

Bee, taxes

"paded (call..le d

by Customs)

(23)

Domestic -

(24)

Octap

formal

taxes 11

(25)

5339

7"

1 ,!a?a'a .:~ 3 22 If star 1, 097, It, 3,19 1

. an an, IN.

39 ------------ 371513

Is, g

15,48

2

SL 7

'So 145

.

.. .

. c67 ~1 4a L

21,03 IG9

To

21 42 . . . : : : ::

41 " ------------ 74 1 4 777 ------ I ----- 15

15 2 12 2: 34 _ ___2,239 ----- . . . . . .

.877 '331 Will . . . . . .

4 %oQ9 '006 2

i,s. 175. M 174

22 27,417 469 6: ~"l 4' '3`4

89.95D 13

3 14 :9"9'o 34. 9G7 83

1 21.311 22,297 66

99 .37 779 53

1 1 ---- - ------- - I

1. '. : W .1 77"art

78 6 385 G. 311 87"59'

2 12 46' 7 77 - .-- - -

126 77 ----------- -------- -

162 28, "s ---- ------ 28,53 7

2 118 . .. .. . .. . .. 121 384 43,404 4G9 Ito 2

. . . . . ..

"24 73' 12afa"

72 29,696 -------- 29 . D171

I

o

2 14 I ar 1 : 17, ago 11 114 a : .61 25

211

91 22 76 3"3 269 151:23 1

1 15:36D I IDS 515

7 IN 19 1

424 413 317,4as

34 3

.1

4

7,7oa - -- --- 29

4

185 log 76

1 lz ------- III

14 141 . 239 105 141,665 279 2 7,136 --- ------ j- 90

3 go'llso : '73'1 11D

147 3 31 ------ 3f : 3 4 : : : :

9128 :~ 3 1: 8'91 22

,Aq - I I __ _ .N8 252 .__.9~112 8$1

3D7 44,301 198 43 . 734 369

97 29,475 8 7 77

7 66.603 ---- ------- 56.562 '41 15 41

6 16.895 -- --- -- Too 549 49

.as i I 1 11 .j . I.-

1 4 4 31 2 31 ------ ----- ------ 19

1

2a

1 ------ 1

2 2,478 :311 1

92 49,212 4 421 112 '79'

34 1 2. 261 7

93 6 IN 2o 6,064 23

I 3 1 ------ ----- ----------- 2

19,66's --- -- 211 7's

go 41.999 "' 1, 19 " 11:

Totals for states got shown bul l

1 706

1 : 449

6,873

W

lomS, 150s ,4,687

1 562

1 1503

C

,

- -- ----- - -- --- I262

It31)

3784

404

68,880

39,620

96 7

11 : '771

'7

:313

73 77G

16_1 : : :

-----------

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

1,064

30 3

2,239

29

67 621

39:266

93 '

43192

'7 ' 7'

:

f22

189

51

412

50

"I 156

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

areas-Continued

It, thousands of dollars . See table 3, p. 108 far tax rates and further breakdown at national totals by sourves .1

Internal -,nuo regions, districts, Suit as, and other area,' (States represented by slngle

di,ftlds irdicated I . parentheses total, I., other States no . . at bottom .1 table)

Tobacco taxe s

Total

F- I

(26)

ip"It,

(28)

I

od",

r1

la,aftedd 1.1- ~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . .. . .. . .. . .. . 2, 2116, 585 2, 49 .527 Wris g ,

-1, .0-re Ft.v. .. . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . .. . .. . .. . . . .. . .. . 1, us 3.. It .

Albany ----------------- ------------ (See (c) below). . . . . . . . . . . .. . .. . . . . . . . . . . 29 . . . . . . . . . . . 29 ------- . . . . . . .

Augusta . . . . . ------------- - - (Maine) . . . . . . . . . . .

B stern . . . . . . . . . . . .. . . . . . (Massa,hasidt, )

Bmok yn . . . . . . . .. . . . . .. . . . . . . . (Sao (c) below) ------------ -

Sea (c) below),, ~

5

(1 )

Bud gur

Hartford i ---- - - ---- * . . . (Conned .

Manhattan ----- --- . . . . . . . . . (See bolm")_ . . . . . . . . .. . . .. . . . . . . . .

22i

624 123

2~2

Parf'aarat6 % 93 40§

*

hire)------ . . . . . .

. . .

'

. . .. . . .

Providence ---- 1. of I I "I V

hild-A-II .R.al- ------ d ) - - __ ' . . . . . . . .. . . .. . ... . . ..

. . *

. . . ~ - ~ . w ~ ~ . ~ i i

Baltimore ------------ ---------------- (Maryland ari D .C .)_ ~ . . . . . . . . . . . . . . . . . . . s. 23 a.

_ -

:ic,ref

Newark- (New )erag) ------------------- ---- -

(*) 91

Philadrlphw . :_ : . : .__ . (Se,

Pitt b h (:~b:I'W) _ : :_ : _

23,92728

278

1

1 3

23.927

171

19

e a

s ur g - ( . - ) _ . .. . . . .

Richmand ---- ~Irgima) ----------------- .

-_ _

5 _ _5n iv

27~

~ ~ 27 2

Wilmingtrin : ---- (Delaware). . . . . . . . . . .

_

7

. . . .

"'1'

. . .

Atlanta----------- -- 1 : .62 1~162 . . . . . . . . . .

Birmingham ---------- ---------------- (Alabama) . . . . . . . . . . . . . . . . . . ----------- -

Columbia----- - - _ . . . . . . ----------- (South a

C

Z342 L:'313

Is

. . .. . . .. i g.

Greensboro . . . . . . . . . . (NoribCami 1,184.48 66 51 0

lack

. . M."I'd"i --- - --------- -

---------

. . . . . . ..

"cir

,a n tFlo,ida) . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nlhidlu~ (T.amestoo)

16

211 . . . . . . . . . . . . . . . 4 207

C.,t,,l astal--------- - ------------------_- --------------------------------- -- -

Cincinnati- . . . . . . . _ . . . . . . . . . .. __ (See (d) below)---------

4311,614

101

ass. M

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

3' ..1

10,

459

Clinialimd~ ------------------------- (So. (it) hot ..). . . . . . . . . 724 . . . . . . --- 718

Deficit. ---- --- __ . . . . . . . . . . . . . .. . (Michigan).. ----------------- . . . . . . . . . .

8

Indiana 8 _1, --- ---------------- - .- 0ndiaga)._ . . . . . . . . . . . . . . . . . . . :_ . . . 482 . . . . . . 4821 . . . . . . . . . .. . .7

Loui,vllr . . . . . .. . . . . . . . . . . . . . . . . . . . . . (KentuckyI_. . . . . . . . . . . . . . . . . . . : :~ . . . . . 438,079 6;

'

2,339 46

Park rdiurg . -------- -------- _ ----- (West Virginia) . .. . . . . . . . . . . . . . . . . .

lifild .-I'll.al240 -.. . . . .

. . . . . .

240

9

. . . . . . .

Aberdeen . . . . . . . . . . .

Chicago . . . . . . . . . . _ . . . . . . . . . . . __ (See (b) below). . . . . . . . . . . . . . . . . . . . . . . . 2

Des Moines----------------- . . . . . .. . . . (to. -

F. gs__ (Ho - ----- -- -

Milwaukee. . . . . . . . . . . . . . . . . . .. . __

Onah ---- ----- ---------- (Wjscr"i`? _- _ . . .. . . .

(Nebraska

:

Ki - - - --- - - --

I

q

: : . : .: - :- : : u'

,p,offfield ---- --- ------- . . . . . . . . . . . (Sea (b) bou,a)_ . . . . . . . . . . . . . . . . . . . . . . . .

S"th, . . .. . . . . ----- - ---

V)

Us 3

i

.

i

1 7

. . . . . . . .

Albuquerque. . . . . . . . . . . . . .. . . . . . . (Now Mexico)

Auctm-__ . . . . . . . . . . . (Sea (1) below). . . . . . . . . . . . . . . . . . . . . . . . . . 187

~

2

. . .

177

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

8

Cheyenne. . . . . . . . . . . . . . . (Wv' mine

"

a

D2 :nv""KI . : _ : - -~ : (. . . . . (Colorado) S I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

'

----- . . . . . .

LiUlt Rock. . . . . . . . . _ ---- (Arkansas) * . . . . . . . . . . . .

_ -

F : . :7 : : 7_

No.Orleans ((Linfiliant). . . . . . . . . . . . . . . i M : : : . : -

Oklahoma C

.jj~ :~

Oklahoma)-------- -

=hill -. . -. . . . .. . . . . . I— (Kansas)- -------- -

I

. . . .

. . . . . . . . .

. . . ..

. . . . . .

W_ .

ft.., - -------------- __ ----------- ------------------------------ rat

Anclurrag--- --- ------------- ---- : :_ :~ : : -- -

Boise---- --- --- . . . . . . IIdaho) .

Helena i No Man rra~ s _: : : ,

n.l.-. . . . . . . . . . . . . .. . . . . (Hawaii

)

as Angeles_ ------------------------- (Sea (a) below) . . . . . . . . . .

5

51

. . . . . . .

W 3 ;

P

ho

Podia nd 'n" -- - ----- ----- --- --------- -

. . ----- - ----- ----- Oregon) ---- - -

Ran .. . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . (Nevada). . . . . . . . .

Salt Lake City--------- ------- --- - -- (Utah). . . . . . . . . . . . . . . . . . .. .. . . . .. . .

. . . . . .

. . . . . .

. . ..

. . . . . . . . . .

San Franciscia .-_ . . .. ----------- ((Sao (a) below) . . . . . . . . . . . . . . .. . .. . .. . . .. .

Searle . . . . . . . . . . . . . . . . -- Washington). -------

2)

5 4

------------------------------------------- - ,

Puerto R ear ---------------------------------------

so

. a

m

10,334

iii.334

11.311

Oth . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unit i stri bated :

( . )

Federal ta x deposits and depository receipts I ----------- -- . . . .. . . . . . . . . . . . . . . .. . . . . .. . .. . . . . . . . . . .. . . . . . . . . . . . . .

Ga. In., lubricating .11 . ad excess I CA credit, 7 --------------- --- .. . .. . . . . . .

Tram',",ad In Government .1 G.. .. . . . . .. --------------- -

Withheld tax,, of Federal employees ----------------- ---- . . . . . . . . . . .

Ci-ingaccount ur xxis~ tores-0,fion luel andoil-M, force and Navy ------- - ---- . . . . . . . . . .

I' - -

Trials W state, .1 shown above

(a) Cahlornla ---- ----------------

(b) Illinois . . . .. . .. . . .. .. . . . . . .

(c) Nor York ----- --------------

(d) Oh .. . . . . . . . . . . . . . . . . .

Trura Promylvaria . . . . . . . . . . . . . . : : : : : : : : : . . . .

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

112 658

825

24,206

187

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

126

19

1242

24.2081,5

177

53

4091 06

1

2

. . _- . . . . . . . . i

Annual Reoort / Statistical Tables 1 103

102 / Annual Report / Statistical Tables
Table 1-4riter al revenue collections by sources and by internal revenue regions, districts, States, and other

arears-Contin=

lin thousands of dollars. Sao t0l . 3, p . 108 to, to, (area and further breakdown or national totals by sounasl

Manufacturer's excise taxes Retailers exxiss taxe s

Internal revenue z4amns, districts, Star.. and

other "es, I (S to, ,p, .antd by shillHimTire,

Motor

Ranit Bidets mid usiod in parentheses ; totals to ,other States shown at bottom of table)

Total

corma"c"i aviation

ob,

. ..

ng or . or"I"in ,

" =Other To.I

Comm rical Other "

fuel the ,

If tho

asolin.,

etc.

1

of rubber)

mar ,

,1,s I"d

badi

",is anor d.

., .at! n

to

.1

'i n , , gasolin e

rubber

c

(30) (31) (32) (33) (34) (35) (36) (37) (38) (39)

U.it,d Strs-, a I. . . . . . . . . . . . .. 6, 655, U7 3, 5,17, $78 U, is $1, IU 593, :77 2. 4", 4110 52.079 4, 839 4,75 9 5

Novel -4 .2 242 .932 .7 136, 93 V. 3U 25,039 439 217

Alba a 1"'

. . . . . . .

A

(M in I . ---------- -- 1,872

2 : '311

3 13

1 7

14

1 7

(; 1

62

3

13

3O5 19

1

1 3

1 1

1 3

stor- Ma athusetts) ( as$: 34

BID

29, 8 54

2 5

IBF 31 1, IS. 2.589 Is 36

nooklyin. . . . . . . . . . (Sis, (c) below). . . . .

Feemm(c1.'1)1owT -- -

:

26 709

31,1 1

E

3 .93 3

11, 81~713 31B33 3 11 1 1 "07

4

T '83'6

2'

1

817

"

3

74' 1

J

IF

artford . .- . . . . . . .

. Con...

ticirt) . . . .. . 128,613 9,832 12D 9 88,

'73

6. 5

4'

23 . 5

' 1

In 4 1 Man attain (See (~ below). . . . . . .

P t th " i

205,33 1

1 2

172.852

113

296

3

5 .210 11,371

134

E, U1

111

I, 5B 9

40

111

8

41

8

, F 5 1

or smou . . .

. 1 1* ir= ~ __ :

Pmvidmc . . . . . Brad

I

.

.

.

2: 1

426

TO7 2

202 236 115 3

1

. . . . . .

holial-A .-F, loarl. --------------_- sus. lars 11., 241

1

2.2. 40 $13

Us's11

3 . " 6

37

33,

B .Ificur.. . . . . . . . . . ~11411,11 How I.1'1b it 1-1,) -- -

Newark . . . . . . . . . . ). . . . . . .

daBh

(S

Phil

11,417

158.676

38 06

11,3

48. 07

07

1

32

5 10

1,05557

92

31 .

2,47 4

1 11 3

3 573

21, 72s

2 042

7 2

103,35 1

3 7 11

40 1

1 .99 9

E34

41

11 8

73

41

11 8

73

o. ~.) e

. . )~ . . . . . .

P!tl,l,,,l--------- (See (a) below . . . .. .

0. 8

260.506

3 .

243, 66

8

09

IF : ~35 3 533 ~ 3:

10

0,h ,d 63 93 93 ---- -

(T 'gillis) . . . . . . . . . .

. .

.

9,%4

,,

1,

322

375

135

111

682 641 1 .049

25

3 9

---

52

3

52

3 . . .

Ferv,lar- . . . . . . . . ------- 172"03 Us, 6. 1, "1 1, s20 a2, .1 11, U2 2, H M 767 _6 7

Atla rta . 17, EIB

14 11

62. 146

1 11 1

21

32

114 1 :121

1 ' '

7 7

1 : ~E1 211 11

6'

135

BE

-66

. . . . . . . . .

'So"I' 2 11''

, I

" "I

L2: 4,6

83 181 254

2 1

5 375 35 3G

G,.,.sb .,a . . . . . . . . (He ll . 2 n ~~

"-p I P

34 54 : 6

2 "1

30,171

6

1B

19 5

34

133 1 25 5 : "11 1 .15057 -1_157

1

1

40

1s2~1

------ --- -

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

~

14

F5, 3.47"

111:

E

11,354

31

6

171

166

220

43 0

266

1 :'11

1 51

1 .1,71 11'21. 11

120

--- -

----- -

,1_1

'" ---------- --------- l" - """' .'

a

,

T'

Is, 4,742

"

2.014 - s, - M

Ciraluma I'

Cl .. . Un Ill. (d)) b ' ':!.'w*)

1 7: 1 30

1 3 3

2, 63 3

13

'

5

I3 5N 1 , IN4

2 :45 3

394 810

1 :738

33, 740

69

453 19123

1 3

11 2

Detroit .

. . . . ("b" lf ~_

I

T 3

3 677 : 192 339

9:

-2 044 1 .968.673 497 144 14 4

Indian. (Indian .. . . . . . . aa~;

L w ir l

38 847 29 278 107 1 117 ,2 18 1

360

1.1 0

1 87

1

141

14

133

5G

11 3

o " . I er l 56

Parkersbuii : : : ~ : __

: U' 1 irf 4,;)1:

(West V gi

1 311 4

2: 36

6

"1 : UP

6

33

1, 6

19

230

267

4

30 3 2

Mini~ stravalon,. . . . . .. . ... .

.0' " ". .4. 1,4n

9"BS 7'179 93"'a3

"'.

sag 2

Aberdeen . . (South

Ch d

I- '

4: 125

312 460

3,83 7

270 194 2031 7

2

6 69 1

7

337 3

2

69 62 838

J, 21

97

2 0

(~ 95 2

Des J.Oiwe;: : IIt"

:

IS 259

,

14 270 76

,

85

,

1 111

,

2 11 40 11

1

Far& . ("11 4

' 5

.

' 3 ' " '

, 2D :

2 14'

f 1

( 21

Wi-asl.)- -

Oman.------------ (Nebraska)-

57 211

750

8

4 7 : 2 6

E, 174

1

Im11

3 00

X 1

2B

L M 332 "2: 4063" "7 1 7s7 7'5

K 'u '

8 5: 542 17, 553 456 1 . 2 O3 1,799 4.361 170

P, ,; . . (Min:~ ( . . . . . . 1 " T

Springfield (See (b) bciow)- .

52,060

Z6, 44 7

44,86 8

23,898

256

79

11 9

69

213,1 12 1,2 :117 1 . 1125,1 8Go7 B7

"

s

.arth,sat Rati.. . . . .

. . .1 -" =

1, . x 437 1,411 37 .1 80 ".259 15, IN 1, "S 1, 2W 1, 2%

Albuquerque (&jv~ M 5,111 2

:

133 4

5

4 2 40

48

4

77

77

Austin (So, if o

r

raniru;~; . .

C oung).

wll

BE102I 516' "

7

15 SO

1, 7

5

023

24,51 0

--- -----

4,073

12

1 .922

19

7 9

4

38 3

27

3831

2 --- -

uoil~lmlcw)

Bi' la' ~

1 22 124

I

109,

'1

Cr 11 1 1, 117 1 3" 1 1I 1 341 1 13 111

, .r ::

Little Rack (Arkansas) . . . . . . .

3 : F 0

7

322

11, 512

26,578

.

20

11

I

55

":

846

31

': 1

94

741

3 .N

111

, 5 F

12

5F

11

New Orleans. . . . . (Louisiana). . .. 112 :94 1 11 .301

11

5

IB I

1 13

a 25

, 89 89

Oklahoma

C

t (0 "Ishii

"

.) .~: :

Wic Keness) . .

31724 : 51

1 31

29~1: B311

2 as 54 4

128

7,524

1 .521

660

82

a

3, 76

563 . .22. 1211I 12'1

Has . . . . . . . . . . . . .. . . .. . .

Anchorage . . . . . . . . . (Alaska) . . .. . . . . . . . .

val, S.

55 12

7 . "Is, 7. 232 94, 126

1

5.307

J

83993 to

3 '

Son 1,

2.5.161 2,4111 11

21

---- 12 4

61

. 4

46

I

17

38

28

IS

28

Honolulu (Havvaii) 1 813

1

1 1

41 6

1 "

13 13 1 3 . . . .. . . . . . . . .

Los A~, l (s 11 p ) l I *1 . . . . . .

.

154,60' 136,811 207 3.356 4,44 .

:

! ~ , a~) to 57 753 1, BID 27S 21B

"'"n

"I _

Portland O e )

427

13 117

32

1 5

1 7

87

27

8

120

3

61

1 E

,

11 056

1

218

,3

59

3 . . .

.. . . . . . . . . r gon . . . . .

Reno. . . . . .

' :

Bb ,

. B

22

19 1

51 53

' ~3)

19 ' 1

S It Loire 61c ::: . . . . . . .

S n Francisco . .. . . . See (.) below) ----- -

4,186

194 656

1,92 2

182,653

32

192

6

6,344

169

I,S85

'S

7

3 171

71

302

37

234

3 7

23

--------

I, h . . . . . . . : at

our, . .. . . . . .. . . . (was agiam)--------

:

26 647 1,711 11 25

2

26

1,: 3

so

2

as Z9 68 6 8

. .

."'marvivar., O-'lown _

Puerto R .. . . .. . . .

8

..

.. .. 1.

8 1 .) . . . . . . . . . . . ------- -

Oth r ------ --- - -

Unit Wjb. led:

34 1 8 59 -- ----- -------- - ------ -

Fedelalt.ad, air add - psi toryiec' Pftt~ ---- ----- --- ---------- ------ . . . . . . . . . . . . . . . . . .

Gasoline, Wbr-tina oil, FICA

credits 7 -------------

Tiansfarred to Governmerlini'd,ai m . . . . . . With held taxes of Fe' erral~ employees . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . ------- ------ --- ------- -

Clim,i

n If incesu

at Far C c,,e

fuel and ml-Atl Force and Navy ------ . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . .. . . . . .. . . .

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

Totals tar states not snow, above

tar California . . . . 449 760 369 523

399

1 7" 33

6

6 1 11 1 113 513 51 3

i'oi'-

378 : WE

:

294 092

282

1

7"

3 368

71]

950

2 : 4

55

1 7, 1

55

c)

'

. York . 171,131 191 C %

'92

~_ J

47

ID2

1

9

: : 211 1 .411 314 1 72 152

0h in . .

1~I P K;

I

. '

4E 3

31 641 2

:

14 7 993

576 173

41a3t

9

1

I 76

7

1

6

3, 7

,

3

1

'011 1

'2 ~

SB7

2

1 '6'6

20rl

e .mr'v 'a._ 166 _

(1) Texas . . . . . .. . .

.

009 .980

.

964,725 2, 323

1

27,426 6,469

,

8,610 426 577 577

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

arears-Continued

in thousands of dollars, See table 3, p. 108 for tax,ste, and Furth ., breakdown of national total, by ror- 1

Miscellanea., ..is . taxes

Internal revenue regions, districts,ii .1.1fbia, intri d

other ., ..a ., (Ststas I so .ted by i

. d sine

inifica 'ad in Pansinth. totals In, a

riffir

. Its' . how

n

at bottom

it art

a)

::is, ~ T,letpYholrurriind tire . I

e r

s1rineri (41 s

1

Transportation

of perso n

by ai r

(42)

Us

. of nationaI""l -

air travcl

facilities

(43)

Transportatio n

I property

by I,

(44)

sv~ . '

(45)

Bit, I an d

special

motor fue l

(46)

U .It" St.- totai _ -------- -------- a. 164 as. a . Us. Us x2l . 1 . 2s, 1. n' 585 as', 2..

anwern'tausnu. rai... . . . . . . . . . . . . . . . . . 3. s .a26 "LIP . .0.681

Albany (Sea 4,1s7 1 91 5F

. . . .

c ) Augusta 1,998 412 38 . : : : : : : :,

Boston ---- (Massachusetts)_ . . . . . . .

B rookly.- - ~ --------- (So, (1) bal- ----

:2

BE ' 20 2. 1

67,45345

15, ": 05,'

26

1 . 187 1,334

2,73 3

1 :)

2.930

' 1I

~ :

Buffalo ----- ---- (See (I ) b at ow 21 1

1 1

12,114 1,448 110 1 .438 3,161

8 rfingt.. . . . . . . . . . . . (Vernon

rt)

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

u

:

33

207 3

. . . . . 62

Hartford .-.---------- (Connecticut). . . . . . . . . .

Manhattan_ . . . . . . VbelDW)-- . . . . . . .

12,117 35

383 . 6

49,246

176.848

38

108,461

166

11 .639 .740 8 .334

2.

ILI038

a t

Port.... th-_ rep,hin.) - ---- -

(He2

1 . 70 257 3 57 I,

_.uv_ Island) . . . . . . . . . .

.ad

an

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

843

4

11 111

Is

' "I

37. .3 1 . 4s. .' 7.41

Baltimore Ma ryl,nd and D .C.). . . . .

----- ----- (

"55':

to

IS :4

'0'

kB 'D

1

98 320 q

Newark . . . . . . N NI`1'

hil d l hi ( Far S '

b

75. 2

103 19116

63 . 1 1 7

75 31

28

441 1738 2 5 085

5 S6

71

' 9

P a e p a_ I

Pittsburgh ----------- I': I:~ b:l*.'WI:

.

26,3'

:'

1 61

. . . . . . .

4

,

4

5

11: 3

R ichnnord- , ~ -------- (Virginia)--------------- 37 .008 28,615 33 . . . . . . . . . . . . . . 3 1 4,652

Wilmington. . . . . . . . . . (Data..,.) ------------- 2.622 1 9 . . . . . . . . una'aus R -__ , , I " I . . . . . . . . . . . . . . . . Atlanta ..--------- _ (Georgia)- !7"1:13"14 1'IG : T28' 3"9:8'46

1 034

'779

2.011

1,216 5,54 9

Birmingham -------- (Alab "1

110

.4 84 99,184 -- _- - . . . . . . . .. . . 5,317

2 . 7

3 Columbia ' ----- (South Carolina)

G-mb ,Imllh -- - .,----------

6,073

31,641

1'1 7 7 1

:1 &1 4,9809 3 . iii . . . . .

. . . . . . . .

15

.09

3

4,38 3

Jackson.-, ----- 3.631 349 22 . . . . . . . . . .

Jacksonville 1 . . . . . . . . . . ~Florlda) -- -

Nashyiile

.

. . . . . . . . . . . Tennessee).

4

, 1 0 U531'

3

"4: 7"70

13,67 5

267 10,

55

124

11095 4 1 C ., 1 511

1.1 Raigh".

T T . . . ' ' ' "'

a,4 '

. "' Cincinnati . . .

:!'' ) (S

': 495

2

: 027

18

329 7 6 (-j 2 : b U

Cleve! .nd-- . . . . . (S: : (~d) b ) .W) 6,749 9 957 19 ( 2

59

21

:

'

Detroit . ------- . . . . . (Mich Bar) ------------ 74,753 58 547 452

3 I1 F

4 1

Irridionarlis ------ - (Indian .) .. ---- ------- - 36

K t

i i

44,707

10 597

341 : 443 6

84

423 24 1 4

4

13

3

7,0 7 4

1 7

o

l o .. . . . . . Lou sv . . . . . ( en ucky) . .---------- -

Parkersburg (West Virginia)

,

9 771

,

79

-1

r_

--- ---- --------- 1 7 -

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

,

Mno 19S 7:0 151,470 4 .9 02 4 976 4 In1 4

,

m

Albmd.ra.. . kWI jSrtilh if. a)-

' '3 1

610 4 .. . .

.

. . . ,

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

F :05 4

Chicago---- . . . . (See b) beto

w

213~ 216

90

$4, 26 2,593 3 .502 3,744

Des Moines ----- ---- Opwa3_ . . . ~ 1

-

Isgo-- --- ---- (Ner1h Dakota) --------- -

----------

10.480

" ''3

3,988

77'

34 .. . . . . . . . . . . . .

.

7

. . . . . . . . .

:57 4

72 3

3 1

,,., : i.

N au (W imm)----------- -

Breaths -------------- (1,1 k,) -------------

36. 1 58

55, 1

. 27, 784

51,215 46 . . . . . . . . . . . . . . . . . . . . . . . . . . .

.. . . . . . . ..

.

.. 2 : 1

' 1 St. Louis--- . . . .

(Missouri)

-------------- 214,358 141 371

" 1 l' 1 . "' I . "'

1,40.3 77

' s (Inn

`

Pan sp,!.gf, IS, b`)m') bar ;W) :

1 113

14 :9C

S: ,

1

9.995

14: 77

59

331

1

302

5

1

5

:

3 12 .

2,690

sa.-anue

--- ---- -- Albuquerque --------- *

W QS2 U. Us 25, 3" 697 4 .9 3 as 1 :'T

I` " Z

7

3 : 73

4 5

183

1 797

5

2D

64

9

32 4 55i

2

25 3494 A (

usti n

) b. w . . .

Chmamn ------------- (Wyoming) ----------- -

Dallas_ ------

6 .

3 0

3, " 1

1 9

N ,

,

94

16,261

.

4

IZ 617 ----- - -660 ,6;0)

,

v"

,

7 3

IB 31 ' : 4 1

0 .. . a S ~ 3 3 1 57 700 5.772 5 114 16* 144 437

Little Back . .. .. . . . .

. (A,k,!?, ,) ---

6.

13

1:

64

40 . . . . . . . . . . 7 . . . . . . .

2

68

3

'.a

New Orleans . . . . --- (Louis

Oklahoma City16,73 5

1 7 11

93 7

30

197

21

. . . . . . .6 21 9 .766

( ;~

2,

13.1 1 1 3

~ .14

W .c

fichit

Raslow . . . . . . ----------------------

. :

23 2

378,923

923

a m

:76

76

40. .

0'3

---------- -

4, ni;

55

b

2,2211

354

15.1 1

,

75 Aniftrage .. . . . . . . . . . (Alaska) ----- - ----- - 1 , -

Box------------- daho) ------------- -

-

3,520

2 84 : 8

1 3

2

426

8

. . . . . .

.

1387

Helena ---------- Maintains) . . . . . . . . . . . .

Honolulu ------- ---- (Hawaii) ------------- _

2 37 3

ILC55 51211 1.740 39

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

90 3 '200

Los Angeles.-------- (See (a) below). . . . . . .. .

93'509

30 .602 34,071 2,968 1,605 362 1 13,9C6

Phasmi-------------- (Aruana?-------- 3

5W

10

8

69 . . . . . . . . . . . . . a 2 2.171

nd . . . . . . . io,

Poll' Reno ads) , . . . . . . .. .

7 :

.2,914 U S

1 .

93 7

Nil

54 . . . . . . . . . . . .. . . . . . . . . . . .

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

2,36 5

1 I14

1 11 Ill l ill . . . ------------- "'910 IS

2

'~ if

34 :n ic ' .: -

I

F. (So

. low). - . . . . . . . 192.348 158,394 2,902 789 114 7 :

14.160

om Seattle -------------- (Washington)---------- -

. as F.-I.- I . .-I... . . . . . . . . . . . . .

So

.468 43,26

so,

$68 364

11

.

. . . . . .5.6

.

. 7.308

1

U

P .0 . RI ---------------------- -

ther------------------------

2:

3,133.

--- -

102

--- . .

1, 547

. . . . . . . .

1, . . . . . .

. . . . . . . __

52

Undistributed :

Federal tax deposits and ftipo,ilwr receipts I. . . . . . . . .. . .. . . . . . . . . . . .

. . . Is "ine,lubrinatingoil,6excessF CArredila ; _

I ansfef ad to Government of Guam . . . . . . . .. . . . . . . . . . . . . . . . . . . : . . . . . . . . . Withhold taxes of Federal employees. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . Clearing account to, Excise taxes-aviation fue l

and oil-Air Force and Navy-------------- __ ------- ------

---- ---

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

I.) Caliourm. . . .. . . .

(b) Illinois-- . . ---------

(c) Nr, York ----------

~rf) Ohio- ~ . .. . . . . . . . . . .

I . as . . . . . . .

Total, for states not shown bul l

285,857

228, 179

430, OU

102,245

129 485

97: 449

I BE, SEE

99 901

1 91 : 848

77 .983

$2.767

18,059

36,974

84,585

125,016

"I 171

19,266

3,758

Z 594

12,9367

178

686

1 .719

3 .507

6,51 2

66

4 . 7506

7:

3 27 IF 41

38,33 5

243

5

4: 0" 555

21

"

:

141

13.343

13,493 1735 7: 7321

8

Annual Report / Statistical Tables IF 105

I

104 / Annual Report If Statistical Tables
Table I .-Internal revenue collections by sources and by internal revenue regions, districts, States, and other

areas-Continued

1, thousands of dollars . So, table 3. p . 108 to, U, rates and Nitta, breakd,wh at national total, by Sou-eo l

Internal revenue regions, districts, Stalux .and other

."a, -

(Stotts represented bf, single districts indicated in

parealh,eses ; totals or othefStatax shown at but .

to . a abl.)

uerbled -ata, I va. .. . . . . . . . . . . . . . .

N.Kh-Ati,maic Haiti. . . . . . . . . . . .

liberty . . . . . . 1(,,) ,law) .

A

. . . .

. . .

.

Boston . . . . . . . . . ~Masszchbuvetls )

8 Ifin ------ B

- - ' I

if (c) : ('s. (') b~20~~i

Bit a g`Q`- . . .

Hzf~jlo rd

.- - ~c mucticut) . . . . . . . .

Mathafte Sto (c) be[..)- . . . . . . .

an.ath. 11"Path a)-

"o."Idon a, H : : : I'Rb."da Island)'

raid-8A.11-I, . . . . . . . . . .. . .. . .

Hawaii, harrill (Maryland and D.C .)

(New a,s.r .

.

. . .

.

Ph car yy : ::~

Wit . . . . . .

'"im"o

D law., .) . . . .

. .

.. .IhAt,.,.t Real" . ., . .. .. . .. . . . . . . .

ante

or a 1

Bit am: ~Aliib g a

it'sai inopi)

Hart

"at ! )

Seat

h Car

na -

col=. . . a -

C .... stnip-_ h1C me ' ~~ : : :

J .. :

.a (1111lit)a..

N.ali (T h ee]f:

Genteel R.que,

Ci :,imi

Cl :

i

,land 'S:: (22

Detroit ..-. (Michilgenrl. .. ._

Indianapolis . (indiant). . . .

L . It---

a rk,, us' , bar, .l . We"' estucirgi "

n is)

field xv- A Halfb .,d,,n---

Gas .i n

Fargo .. . . . . . . .. .. (North Dakota)

Milwaukee . . (Wisconsin) . : .

Oamh (Nebraska). . . . .

St . Louis- (ld,laintly_. .. . . .

St . Peal (Mirmani

So, nitrous. . . . .

. . . (Sea (b) be

Nwoolics, and

.

opuzationa includin g ,

(47)

s .liss

"s

322

24

1029

2

1

7

lIlS 24

'2

331

176

36

11

1

64

4115

1 0

9 3

7

34

1 1

Althum.inbut. . . . . (New Meet.). . . .

. . .

Austin, (So, (1) below)

Ch ne___ I~W, in

1)

alias.

Sam (1) b

0 eye" '~I;W)__. __: .

D.n, a

litll, are I, .I,ccl~; AgIlaitax))_ is as N

Oklahoma Cly_ ~Oklahoma)_

Anchorage Beris,_R ' . . . . (Alask.j . . . .

. . . . . . (Idaho) . . . . . . . .

Helena--:

: (Montana)

a

1, g! (Anzona)-

Portland (Oregon) . . . . . . .

Reno. . . . . . . . . . . . (Nevada). .

San Francisco --- IS., )

I

buti (Washington) . . . .

.1 (1

P ento Rico. . --- . . . .

What_ a . . . . . . . . . . . .

UndlsttLb red:

F ed-1 tax domint,iind dif-it.ly 11-apt

Dearal '" . lubricating oil, & excess

c risliti, I . ... .. .. . . . . . . . . . . . _

I ranstat,ed 10 Government at Guam

Withheld taxes or

F'

dmzI -clo as

Clearing a .b.al I a, Excise fuel

and p,I-Ail Far,, ad Navy . . . .

I C.1ilturtab) Illinois----

(c) Ne. York7

10

10070

207'4

Conn .

operated

,,

(48)

sia1

1

asM7

52

3

7G

9 1

2,2.

2

1 98

711

27

303

871

-

158

482

154

1 2

3 G 7

367

I Of Is

57

98

6

7 1

Lilly1,

5~5

i !

111

74 14 7

so . 1 .

1

S)

93

65

31

203

9 352

156

g,

Mistellammus excise taxes-Cortinue d

Wagering taxe s

Gaza, 1 Wag

floris t

(49)

say

x~5

4

7

'1

a I'

2

34

1

as

2

1

1

(*)2

52

us

'0"

9

(50)

4.s72

S7

2

i

-1

U1

..3.f

3

16

4460

3.

33

7

.

20

t51

172

29

1, a"

f,1,1

359

520

11985

251~

g m, a.

I., . . ide,

(51)

an

ourc'.1 1

(52)

al, 7.

14'373 900 1"T"S

580 24

2,640 149

510

1 : 260 41 270 12

3 :"0 4, 4722

.357. . 21

423 12

1 :(103 2716a 4

4,77

6, 7 337

4

3 :22 '~ I

4Z8 17

2.. - z,ize,

17

2- 1: 7"20' '122 .

28 1 58

1 11 : 112

14

G

21 UP : 4 1 113212

I's I . a394.

,,d,,92

032 1484

13: 979 209

1,210 If 6

01 3'8

's, us 3'932 511 3

9

G,316 2 .393

2,641 134

14V4

:747'0 97

4 42

3 :152 .4

3

I

2,010 .

75

-'a- 2,01

4,3 fly

492 45 51 1'071

2,322 22k

, "' -- - - 11509 87

1 :4334 134

1,976 285

79 132

za' 230 1152

964 68

596 it

5. 442 59

943 1,93

2

11

3

2, !3_8 .31

282 43

a 38

7 .111 g'6

2.365 173 I

112 1 3

101

6

9

784

115

29

-

g3

2

70

A

42

20

4

z' M9

P

2 6

3 .812

61

21

Z4 3

Tatalx to, States hot hum, above

1"' 1 95 .4'

2

17

06 112

11 1 1~1

3

IN

18 83

I 1

51

44 1 .3~ 1

if 326

7. 16,

9GO

10G:721.1

32

12' 3

4: 77

49a

398 33 7 1 W,

Private

Nandarms

in,e,,t

statical

income

(53)

Other"

(54)

24,589 10 . 2

&U-34 003 5

707 712

77

816

5

1120:13

7,830 4481

35 14

95 _2

8

a" a42' 20.

2, 2~4138 515

4

- 5513

T5 11 8

455 1 . 111 re.

T85 331 96

217

1 .15 8 76 20

3 122

4

111 111 2,4 22

"a .

s2

947 39

19'9

639 84

31

28 "2

2. Sn 1 . VA

2 2

1 .224 642 86

8

96

4

1

236

83 42

4 7

725 13' , I

. . . . . 32

2,3321 2 .47612

5

1'630 773

3 8 163 9

j 11 11. 

74

2255 712

3 8

1,447 z, fica

I5 21

111 3 3' 7

20

"'D 798 11 8

09 ZZ

204 XIG

570

_127 466

( . ) as,

4

(*)l 21 2

- I __ -

1 .111

8 24

7 :230 9

47

2

1 . 284 .630

1,~3,6'

3

21,00195

' . 3.I7

Und,ssified eactse

tax

(55 )

R 408.072

aftI

1 65

-55..3

-3~ 511

3,420 118

-

-41,458

237,877

224

-21 :

1 art

""Ei 1 144

12f4:3ISN

969

_24~ 11

2

.

-22, 149

- 16 .

6

1 -107

0, 156

4,112 3

- 20

zz, opla

-2,444

1'57 :~24'8

2,898

I " 2:725

$0,677

ZZB

26,082

1 .404

_ 396

lO 807 112

: 3

3 1 13 IIH

1.627

-1211:069 IVOL

-

-88,6365

111

_" 13:37'8

2:0814

3 56 0.

11, HIS

22D

so, aster

29'

IS 3 146

34,694 1

1 .31640

_ 2 % 128

94,.6 58

501;

I .

7 014

-19,323

-I

442 :,1~1,3

7

231 1 8 :10 2.1

31 :411

_I 4

g 1

24

Table 2.-Internal revenue collections by sources and by quarters

In thousands of dollaml

Qu.n.r ended

S.. .. a .1 anmu .

1

Sept. 30, 1970 Dec. 3 . . .511. Me, . 3 ., 111 . lure ~B .1' .

Grand total . . . . . . . . . . . . . . . . . . . . . . . . . . . __ ----- 43~494,258 467 . 697 2, 21 1 .t44 1,473,599

Cmparaturn urcornis I.. ... . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,280,T13T 463 494 ,654,025 1,922, 12 1

Individual income and employment taxes, total- .- ----------- 32 .394,143 7 .045,010 7,473 .574 3,758,3 3

al, -employ memil fee 4 a no taillitteld and elf . . . . . . . .

. . . . . .

,

l

. . .557,105 14i 94

oma 731, li3 77 7, 1 TI ric j ,

wi lbbeld and otd-age and disability insurance 1 4 5-

Railroad rdli- rt --- . . . . . - - --- -------

7,499 2 .024

' I 1 2

.587,007

2%

3

.867,98 4

25'

1

49D,86 5

. .

1 7

Unemployment insurance .-, .

.

. . . .

. . . . . 1 21 1 5 17 : 7 4

f

4 8 1

-

9:22 2

Estate tax . . . . . . . . . . . . . . 753,423 787,773 171 1 3 4

Dili tax. . . . . . . . . ------- : :~ : : 9,924 0 .376 1 N

1 :

54

9 9 :

3 I

locise taxes, total-------- - - ----- - ------ . . . . . . . . . . . . . . . . 4 .056 .456 .16LC45 ,195 . 74D ,458,61 0

Alcohol rates, botal---------- -- ------------------- 1 . 104,528 .... 1. 397. 570 .C49.774 ,21ilil l

D,,tiIIadxpi,i 1 1___ 4 6

, I ,

77

' '1

4 .ii4 7,78

6

j '

W . p~ cordia ath

"

6~

2"

, ,315 .046 ,64 4

Be. . . .. . . . . 99, 013 65,484 36,044 7 .111 1

Tobacco taxes, total ---- -- - ----- . . . . . . . . . . 564,342 570,556 38,353 33,33 4

cig. .t Is ---- --------------- - 550, 454

~ 43i

-

526 06

8

.

-

T

~,

C fix ---------- - . .. . . . . . . . . . 1~383 5A

56

7

11 1 '

7 3

other.-- --- - - ----- ---- _ . . . . . . . . --------------- - . . .. . . 505 6 2 S 1

5 S

a i

Manufacturers' actetaxes,balal---- . . . . . . . . . . . . . . .

.

. .. . I, 8DO, 3Z5 .569,628 ,514 .8

06

.810,958

Gasoline ------ --- - . . . .. . . . . . . . . . . . . . . . . . . . . . . . 7 nu 32. 740 85, F5F 31 .iili

Noncommercial aviation t al other the h gasoline

-

2,776 3 1 1 5

Lubricating it, etc------------- -------------- - 4

Tires (wholly at in part at rubber), inner I has. and fraud .bb.. . . . . . . . . .

a

23 49

175:516

9

1 2 11 1

50 :

C : 7~ i

128 .915

.

1311,83 7

Motor vehicles, chassis, offies . par and excessom-_ . .

i s

Other u . ---- ---- -------- ----------- . . .

.. .

13 5114 1 8 4,41 8 1"1

_ __ 9 71 : . .8 _ _1,5 : M2

-

Retailers' acise taxes, total ----- - . . . . . . . . . -45 11591 ,575 ,71 7

No a.... ..at aviation gasoline

-- - - - -

.589 , 447 .71 7

Other-' --- . . . . . . .

1

120 1

Miscellaneous extim feet, . total . ... . . . . . . . . . . . . . . . . . . . . ------ 639, 419 667,086 31 .739 15,98 5

Telephone and teletypewriter excharg.sarvuat_ .. . . 380, T3i 06,8i

,

-

12

'

f b 11 1 2

U 'IT nali at ai 'a ."' za,a,T r .',,,w,s

,

249 05,,8 5

7 11 7

S

13 7

9,387.

1 1:

ff,17~f1q

Transportation at property by air. . . . . . . . . . . . . . . . . . .. . . . . . .

:~~ ,

5 0 .479 14 4

Sugar.

- - * - - - *, -

,773 549 G 7

G 1

1

1111 ano", ,u e,s -- --------- : 1

11hantati . .. I .l.,% me huana, including occupational taxes- -Zi .- .-. .. . .. . . .

,11'431

'8864 97

5 :

3

463

9

:

30 1

Cm-oparatsal gaming devices . ..---------------------- - -------- 13, 174 659 33 ,01 7

Wagering It,% n

Descant .

as

L . . . . . . . . . . . . . . . . . . . . . .

' 1 ''

2 0

W 11 - - - - - - . . . . . . .

. 2 1. 6~ 4

'

7

U I , j.ax on hi ghway moto vahicle. . . . . . .

. . . . . . . . . .

. 1

.1 civil -czxIt__ . . .

.265

.. .

4

il, 34516

, 1

7,31' I

2 224

P gal, foundations, net investmen t . . . . . . . . . . . . '8,

0 he, 11 - -------------- --- --- --- -- -- . . . .. . . . .. . . . . . . . 4.231 5,955 618111 3.02 5

Unclassified exxisataxes_ :. . . .. . .. . . . . . . . .. . . . .. . . . . . . . . . -52.113 45,394 59,493 48,OD 5

106 Annual Report Statistical Tables Annual Report Statistical Tables 107
Table 3 .-Intemal revenue collections by sources, fiscal years 1970 and 1971

Ifirthm.nd, at dollars]

Sources of revenue

Grand total, all sources. . . . . . . . . . . . . . . . . . . . . . . . . .

Corporation I... . I... s, total 11 . . . . . .. . . . . .. .. . . . .. . .. . . . . . . . . . . . . . . . . ----------------- ----------- --------

Regirl.. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . .. . . .. .. . . . . . -------- - ---------------- ------- Exempt organization business income tax . . . --------------- . .. . . . . . . . ---------- ----------- ----------------------

Individual recome and employment taxes . total . . . . . . . . . . . . . . . .. . __ . . . . .. . . .. . . . .. . . .. . . . . . . ... - ----------- -- ----

:rcam ruzzi l a a not withheld and sell-employment tax I 1 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------ ------------- -------

ra t

. a

withhold and old-ago a ed d rubility inau rance, lots 13 . . . . . . . . . .. . ---------------------- I ---------

Railroad irement, total Unimp -t Is.. . . . . . . . . . . . . . . . . . . . . . . .. .. . . .. . .. . .. . . _ --- ---- -- ---------- ---------- yetsof 4 o~ morepersons faced 3 2 percent on taxable poifiort of wages, effective Jaii t of is, Is contributions to State unemployment funds ------------ -------------------

Estate tax, inedtia ad mile, from 3 percent a, first $5,ODO of net estate in exceers, or $60 .000 exemption to 77 percent an portion owe, $10.000,ODO ; credit allowed far State death tase . . .. . . . . . .. .. . . .. .. . . . ------------------------------------------- Gilt taUraduated rates from 2~,, percent on fibrat $5,000 at net gifts in excess of $30 .000 exemption to 57% percent an portion over $10. 000 ; S3,000sentail .I.IioE for aac d-s_ . . . . . . . . . . . . . . . . . _ . . . . . . . -------- --- ------------ ---

!act,. face" total . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . .. . .. .. .. . . . . .. . .. - -------- __ - ------ ----

alcohol least, total - ------ ------ __ . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . ---- ------- --- ---- --- ----- Distilled spirit, face,, total . . . . . . . . . . . . . . . . . . . . . __ . . . . . . . . . . . . . . . . . . . .. .. . -- -- . .. .. .. . . . . . . .

Imported (collected by Customs . rate, same as domestic)--- . . . . . .. . . . . . . . . . . .. _ ------------ . . . . . . . . . .

Domestic'

$1050 E. ., wm, gallon be. below proof I --- ---------------- --------- . . . . . . . . . . . .. Rectification.D cuZ~ sppuer jpigalton I ------------ . . . . . . . . . ----- - ,,-PiEnc, A I

.Elieverage manufacturers of spirits . $25, $50, $100, per yen r- ------------- ------ ------- - -- . . . .. .. . Rectift.. . : L... the. 20.000 proof Rallems $110 Par vs.,- - - ------ ------- ----------------------- ------------ 20,000 proof gallons or more . WO ForII Iy or-------------- ---------- -- --- --------- _ . .. . .. .

Retail dealers in liquor or medicina trits, $54 par yea ----------- --- ---------------- _ . . . .. .

Wbe

I.ese II 1.r, 1,z1,,r,,,125" 0" y E

... . . .

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

Man

I" . all 5

p.r,.E,

'-- : ------ Set., re,garalties, etc -------- . . . . . . . . . . . ------ . . . . . .

Still, at oridens- manufactured, $22 Each_ _ - . ~ ----- ------- --- . . . . . . . ------------- -------

Wines, cardials, etc ., taxes . total. . . . . . . . . . . . . . . . . .. . .. .. . . . ------- _ ---- --------- .. . .. . .. ------------------

Domesti 1,11,10 d I!, c reiin same as Ed th"Aan . sliarkiWi airtilliciall yEx

"'t"T is. 'e, .' ( ..,I win .,$2 .40 7 cents $2.25 me ga liqueurs . cordials ' $1 .92). . . . . . . . . . . . . . _ --- --- . . . . . . . . . . . . .. . . . . .. . . . . .. . . . . -- ---- ------ - GEE olatioinal taxes ;

1 dealers in win,, or 1" *- and ban, . $54 ispia,. . . . . . . . ------- ------------ Wholesaled

exlers in

synea ir Iri in

., and beer . $22 PEI yEar---- ------ ------------- ------- . . .

Bee, taxes, total- . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---------------

Domestic, lerocirled (coIleI~ S, per bar :,1.1,31u t I .,.1,:Ey,, ratlas same as domestic) I in . . . . . . . . . . . -- ----- -

. . . . . . . . . . . . . . . . . Occupational taxes: grawers :

barrel, ' ""'iff 1-1 than 1 151 .

Par . . . . . .

...

or .,a . . at y Retail dealers in beer, $24 Earlier (mccludes-I .. . jord *l',6ddeafi,;_En_w,;j;6, item --- --- ----- Wholesale dealers in beer P $12 psi filar, . . . . . . . . . -. . . . .

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

Tabs. . Lax., total. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . __ ----- -------

C .g.. . flux, total . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ ------- . . . . . . .

-3, pEr,,6.Iia - -- ------ ------ ----------- - Larg, (Cl (C a." "$. .P4' ."P,Etb`.ndWd, nelit it com 6,1~ inches lomi Ed lot Each V, Inches In fteeflory pirtheratif ----- ----- -------

.Payment, . . . . . . . . . . . . . . . . . . . . .

Cigars, total .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . .. . .. . .. . . ------- ---- . .. . . . . . . . . . . . . .

Large cigars . total . . . . . . . . . . . . ----- ------ . . . . . . .. . ----------------------------- ----------- --- CCie. A (Retailing at of .... 2% cents each), $2,350, pot thousand. . .. . . .. . . . . . .. . .. . . . C (~O.. . 23J cents, not over 4 cent much) . parthmUsand ----- . . . . . . . n,1 o,,,r he we I. an , as ) Elm, 11c,,h) 4 : I

Class 0 (O:~'e~ '6 E'eZ,~ $ 7 per th*.u. se. . .. .. . . . . .. . .. .. . . . .

11, Is 11111, 1 cents "m .,a, 15 cents each), $10 ~E, thousand . . .. . . . . _ . : a.

is F (own 15 ceims . not over 20 cents each), $1 per thousand --- . . . . . . . . . . . . . .

.

Class G (Over 20 cents ...h) $20 per thousand . . . . . . . . . . . . . .

Small cigars . ...... . its. 71. c!nt, re., flicubrand . . . . :. . .. . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . ... . .. . . . . . . .

Imported Ell . . . . . . . . . -* --- - - ----- - *,-**-* ------ - 11 rs,cicareth, "It"me

.

. Par . Ed cigarette tubes, (collact- E - d __by

-

Cost.-. E I .

.

t- as In as ch.viest, Miscellaneous T b- -. . .. . . . p _. ---------- . . . . . . . .

. . - ------

cig Stamp.,iary paper, and tubes: papi cent per 50; tubes I cent per 50- . on documents other ments,and playing cardscerds .total

197DEr

(1)

Fi-I yes,

1971 E3

(Z)

195, 722.096

35,

35,032 18 3

4180 0

141 .100,77 3

2~,_17TP09-

111,166,075

980,85 1

776,13 9

3,241,321

438,75 5

15,904,264

-

13~741~ 12

501 S3S 766 .888 2,695 773

25:10 1

EE

119 12,42 7 631

12

5983

"63 337

18493

142,268

2,411

16

5

1,081,507

1,670,906

222

3,185

799

2. G94, 21 2

2.036,101

2,036 084

1 6

56,83 4

%,174

4

87"7

12,416

10 .402

251: 1

125

3.650

937

5192

756

220

191,647,198

30,30,953

30,313 195

6: in

140,671,111

___26 209.943

it 2~ 444, 88D

1 .043,878

972,409

3,352 .641

43L64 2

16 .871 .353

4

3 :~11 :48 7 775,391

Z 703 540

25 :00 1

5 3

1 1

JOPS7 2

503

5

400

2

117, 113

-F72-59

1 57P 270

4 538

206

1,10732 2

-6. ~8_4

1,097,G5 7

17 2P 6826

3 9

2,206.585

2,149,527

2,149,514

1 2

54P 77 5

11P "I M

1,936

10,876

10 957

21 : 577

827

31 : 446

637

76505

4

1 .513

68

Table 3-Internal revenue collections by sources, fiscal years 1970 and 1971-Continued

11 . thousand, of dollanral

situnci mm

Fiscal V

Manufactnima'-se taxes, total .---------- _ .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 6,683.061

Gasoline, 4 cents P., pit.. . . . . .

. -------- ------------ Noncommercial aviation fuel other than 1,435,~76 7 .his per gall-on. . . - ---- ------- ------ Lubricating oil, etc .. 6 cents per gallon : cutting oil . 3 cents per galloW v m -------- * --------------------------- ----- 1-0- Tires (wholly or in pit of rubber), into, tubes, and tread rubber: Tiirhe., 1highwa~t

sidevey we icres),

pe, 10

I

cents per Pound other, 5 cEats Per pound accept laminated tires (other than type used a n

Inner tubes, cent per pound . --------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 561,049 10 cent per pound ------ - ------------------------------------- 24 :7011IS

Motor vehicles chassis bodies, parls

Tread rubber, 5 cents per pounc~and incEr7ii : - -----

.:

. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Inin bPressenger'suctorminim,' inien,1110duesel, --------- : --- --------- Part ks . Ed boxes. Eli bodient, etc.,

to P m ponanI

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

.

. .

.

. .

. . . . .

d . . . . 1,753,327

a an accessories for automobiles, trucks, . . . . . . . . . . 659 986

h In etc.. 8 percent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 84 :06 9 ... shi 11, 111jef'?Emne,ritar -5-30 4d'!'. a,ad rel,iskin P "~ core PI.,c B 11 1 1 . 1 car is 5 Ed ' intained ii*r"cindflion Y P1IEzIrm, to .1,1,iE1,nd pIi,,encsn jw ::axp .t5 Percent I' ---------- 1 ' -14 . c - - --------------- .J7

Ph, of nesmal,

- 1

ffbo;~Earj

'0p"""'___ 10 percent I:, :~ ~ --- --- ---- ------ --- -------------------- - -- -- ---------- -------- 3 fishing mcfalcmills, latc ., 10 pincent. -------- ------------ --- * --- - ----- --------- -- ---- . . .. .. . .. . . .. . . . . . . . .

B immes"I 11 ---------- : : ------ ------- --- -- -------- ---------- * --- --- . . . . . . 13,924

Fri lueshici ptinEils, faces, ., r I, revolvers), shall, and cantridtal, m: (:hE`ih`xmacbin1x`i 10 Percent .d' 11 32, W-61 : lighters, 10 cents Per 119 for 01 or more) 10 percent (less the. lil) It .. . . . . . . . . . . . Matches, 2 thou pdcents per I

h

ousimed (but net to exce mcnit E d

10 P

.1 selling price); Carter veseclery or tied Items, 5% cents. . .par.. . 5

Retrallers miss taxes, total ------------------- 5 ----------------------- 108

Noncommarcloavieat"" H.r.ia 3 cer.t, par gallon. . . .. . . . .. .. .. . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . Luggage, etc P

n-t!".,xwej lY6 petc ., 10 Percent . . . . . . Furs, . ------------ I

Tailet or,pa",.1fin',a-, -1-0" pace W_ -------_------------- * --------------_-- -------------- . . . . . . . . . . . . . .

82

26

I

- I

6,695,717

3,547,6 T8 10,918 88,18 5

541,840

21 037

1,695.112 62 29 11":078

129 -to

1. i2l

1

-30 14,3032

29._414

1

Meacclixtrear., mecia, I.En, total----------- ---------------------------------------- ---------- --------------------- 2 .342.222

Admissions taxes, total It . . . . . . . . . . . __ . . . .. . . . . .. . .. . ... . . .. . .. . . . . .. .. . . .. . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . - 71

Theact-goonterta, athletic "i at, . : Adm ssions .

r I cent for each 10 cents or major fraction thereof at th . mount Twid in -as of $1 . . . . . . . . . ------ -21 RentLeals, of E%as , -of of the .... .t for which imile,sponcrons. abons . . fit. . . . . . . . . . . ..is10 pas -4 garden,, Its, etc '10 percent of total paid for admissions ,

., lenvion . etc. . . . .. .... .. . .. . .. . . . . .. . 3'

Cl.u,.Ipd and initiation fear. 20 percent (it dun orfecstare in ezc~s of ~10 Per year) r-, . . .. . . an If IP a . . . . .. . . .. . . . . . . . . . . . . 2G6A T ban it teletrow, It.

ng

efser, a t is hin" we, mc,- *I' 10 percent ; m equipment services,

a

8 percent 21 . . . . 69

2

Transportation T= of persons . by air, 8 percen ch Ed Inver, 5 If ----- 10:11.2' :jIon of property by air, 5 percent . . . .

. . . . . . . . percent . ect July 1, 1970)

U lhflsa~.1~3.pn piim- ------- Sugar .Pit

-1P1 ricani he'Pc 1%.

: 31 Dinel and spatial motor fuels, 4 cents per jfitil;;_61; iilreinwncei 2 12]537 71 2

Namolics, and marihuana, total ek . ------------------------- -------------------------------------------------------- 2 -.075

N.,co It --------- --- ----------------------------------------------- _ _

ti --- . . . . . . . . __F25_7 Marihuana --------------------------------- I -------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918

Coin-opeiratcal amusement devices 110 per device, per year, bowling allows. mol tables, tic., $20 per alley at table, Par year 1- Gain-overated gaming devices,$250

per device p., y ext .. . . . . .. . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . Wagering .

xn : Occupational tax, $50 par year ------------------------------------------ --------- . . . . . . . . . .

wwelna~i"Ih fi.,Ymv,~htil :ii,% : Da .

ina . is cl..

u . w-Keninrl .1111 .Bin d,t, . . it -- ---- -- -- -------- .1~%dW po1nd2s .E. .E$3nlpepx1,,O( poun a pet Year (installment priv,leges2parmilt , E b I It ii)------ III ------- --------------- d)___.~_ as lax ntecivil aircraft. $25 per I pouti win or me engine powered mic 500 po . 11, 3h can per pound on turbine engine 1

. . . . . . . . . . h 1 Adulteta , offer and filled cheese (imported and domestic), process o r

beentair .ilred Exce.p.thint taxes II ------------------------------ . . .. . .. . .. .

"brmi iequI~ mrs im home -- .,B*.n_._.

. -----

--------- . . . . . . . . . . . . . . . . . . . . . Private foundation, at I...nevent reconne, 4 percent---------_------------- . . . . . . . . . . . . .. . . . . . . . . . _ Sell dealing. disqualified persons, 5 perceet .foundatom, inumagpir, if applicable) Ints, of $10,000 ., 2~j - minillad--------_----------- TE =business, holding, 5 percent- . . ----------

1

------ ---------- ---- * ---- - -------- --------- UnclacilbIssinste art ditures foundation 10 percent, foundation managers (it appikaixt;ii ind to"s, --------------- ------------------------------------------------------------ . . . . . . . . . . . . . .

2,754, 16 2

22

4 ;011 3

'12' 2

2A:

585 71 3

11 3 ~S%

266 398

27

14,256

570

1354 :13'826

91 95 .906

Ilp 614

------------ - *

-

31LD59

1, 853

20

15,183

359 fla5~1 t 2

058

17P 720

2

fill.f2l

1,57"S

24P 589

27'

410,00)

723

1 p 130

108 / Annual Report /

Statistical Tables Annual Report Statistical Tables 109
Table 4-internal rervenue collections by principal sources, fiscal years 1940 through 1971

[in thousands of doll-]

Inclime and profits taxes

-

M .aut.c-

' ll t h

F-a y e a triffied

Toliflint,ol _xmu l

, Corporation Individual

Employmen t

tax ., I ~

Estate a d

'Ift W.,

Alcohol

taxes I

Tobacco

tax., I

torms

exxim

A o er

taxe s

l

.n. l3 a

collections Total income and

mexpern tax,,

profits taxes '

(2)

UK's I

(3) (5) (6) (7) (9) (10)

111

A'8

2

7 ' : 0'5 :

131 111

$56

11 07y"1

40

6,21 3

2(356 5 1101.:0'711'

117

1 7 :3M

137:311

161

141 7 7 :

7

1' "1

3: 17 1: 1

'6

2:03 469

1 141 11

1 1 1 1

3 11 2 11 85 362

1

432,540 1,048,517 780,982 771 .902

111: ...

143

1 :

22 : 37 386 46 :IS 8 : Ild

: :

, 6 S'

W

6 : 62 9 :9 32

1 : 49005 447,496 1~ 423: 646 92S 3

:4"173 '10043 : 476"Z

1 . 27

1 733 6054'5

944 . . . . . . . . . . . . . . . 40,121 .760 33,027,802

.

14.766 796 1L261 .005 1,738,372

1 0

511,2

61 8

is . ,

13 1 1 31 .111 .511 , 0,7 213 11 I 31 11 3 J :171,,;; 64 3 :~11 2: 3'g.: ,ES 31 .1 1

1 5 19

"

7112 :

2 17 1 92 "

2

.. . 40: : 2:42'311'44 ~ '

"I1 "3876 "2 :2051191 :7'53!

2:553:602

19 676 459

. : TO ~ 4~ 3,

19 343 297

~

700.

2 0 42 361

7, It "

771

2,

1 ,,, 7

6 1

1 :

2 3 .. 7 :

1

421 21, 1 147 1114

39. 08,

542

"4

9

31 17 2 191

, ,

10,174,41

1 0

" 78 , 7 : ,

9,

2: :

381

342 9 :

If S 3a 1

2:2,5: 32

1

1 3 , . 0 .2

:

Gag: 2 3al 2: 206: 8

23

290 969

949 . . . . . . . . . . . . . . .0 A63, 125

, ,

29 .605,491 11,553.669 1 . : 0 51 .822 2,476,113 796,538 2,210,607

:

321,875 1 .771,533 2, .

11 11 117 131 21 017

1"

1 1 154 351 1 08 7 1 53: 3 2 7

: 211: 4 '

7,11,:2270

7 13

2: ~1,161: 12

2

SOS

1,321If . 469

' 3 :3 6

615

2 M: 77'

2:

: "'392:31'1I9

M2

SO as : ,: 6

96

'"

: .

37 4 87 9

741

' 1 "'

1~: . : 569

7

1 1 11

:, ,

12 7 309

2 27 17

' '

3 ~ 7 71

4 464

2 6 4 1 33 1 47

9,120

2 4

1 : 565,162 Z.348.943 2.507,933

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

R M 19 535 : :

1 If

1 3 4 :732

,:515

fl2 : N9

:

2

1,

02 531:

, 7 1 : . Lf :

3 89 1 : 2~4 2:780,925 1 :651 :~I l 22 : INS , 7.8

6892 133

2,647.492

2 64 859

69, 919, "1 54,360,014 21,546,322 32,913,691 5.107,623 935,121 2,783,012

, " q

go , , .

' 'NN '

4 121

al 9'

11 2 72

'

3

"0 " :' IS :1 '

31 7

' 167

:742~

2

"0

514..

1 :,117 1,1 3

I a

l

3 7

1 % 01 15: 1 36

4

2

1019': ffi Ml

156 75 : 2:649

1 17 1 79 1 1

6: ..

: 63

11 11 411

21: 8 :

29 52 2

2 1 1 31 16 3

M 337: 642

31 11 1 172

7 29 8 4 1

7 1 1 2 1

1

1 : 17 23

371

..

2 173 '1 74 11 0 3 711 92, Z243,856

9 7 :9 7 . : , 7 6 , " ID1 : :87, 20~5 3 3 : 3~ , 38: ,6,:~59 E : : 3

GN

8 6

4

To:

121

1

:~

2 4:4

73, : 02 1

81 6 06

3:974: 135

3 958 789

2 .166 .675

1 99 7 292

1959_ . . . . . . .. . 79 .797,973 58,826,254 18,091,509 40,734,744 8,853 .7 44 : 352,982 3,002,096 1 . 8 ~ , , , ,

11 771 11 3 17 121 121 22 171 414 11 111 1 :1 1 1 1~1 1 1:1 11 1 11 :1 : 11

'IS 392

3 :1,132 :11 41 :S9~31 :,,74 4: 7931:12

a 6

"129

2 : 1614 : 39 ,

1 9 3

582

. . .

,4: 1 : ON

40

99 440 839

S 17 7: 9 :~ 4 ,

71 945 305

21 :,64 :S

40

21 295 711

: 153 DO

46

50 64

I It 2 ~ 2 4"

1 2 7' 17 1 2 03 '

1'; 3 ' l " ' ' ''S 73 ' '20 340

2 .264 .8

1962 . . . .. . . . . . . . . . . . 1 7

1963

, 9 ,

5

05 5 39

, ,

75 313 7 1 4

2 . 336. 134

1

52 9, M :

7 81 M

I 5 : 0 ,

04: 1

: 1.

2 7: 5 3 : I l : 6 51 2: 07 : 237 1: 6 10: 309

543

2,279,5 36

2 29 9 64 5 . . . .. . . . . . . . . . . .

1964 .

i

12160: 257

78 : :2 , 8

891 21 : R 663 54,590,354 17 .002,504 2.416 .303 3.577 .499 2,052.545 6,020, , ,

1965

_ * ' *

11 1 11 11 71 7 1 2 016 26.131 13

1

53 6: 3

1 N

1 .7: 6

1% 13 3 .: '

2 1941 0 3 :,523 1

3 :

3:7812 1 4 :13' 1. 2: 0111 73: 14

956

15: 64 4~5

13 6;.'

2L :413 . 9

5 :90Z1

1966: : : : : : : : : : : :

1967

2If: .7,:,6 1

48 374 811

92 : ~3E :

794

114 1" 112

:

30.1134 243

34 117 15

E

297 55 2

11 311 111

2

21 91 141 3,014,406 4,075,723 2,079 1 1 ' 3 ' 7 4 2 :471 :

. . . . . . . . . 153:636: 1 : 1,8: ~

08 51

29 2 : ~ S 0

196

7 . : 252 : ~45 2.: 0

85:898 3,081 .979 4,287 :237 122 277

2'

5 : 71 9

3 : 7 3

1 6 501 14 6

2 1, 6

SOS

2 348 49 5

196S 1137,919,560 135,778.052 38 37 .646 97 .440NDS 33.068

I`17 3 5 ' ':0 ' 5

0

4: '' '

1 2 37,595

4 212

'

, ,

' 11

3 "

2: 3 0a : 6,,

1

170

6

195 72

2 '

1

' 8" T

35

' 1 S' 3 I' G: ' '!'

3

N

7: '491 .1

3 : 6 8 0 7 1

794 283 3

1 716, 12

4 800 432

16 , 2 20 : : 5 5

6

: 69

:717 3,169 .167

91:64 7 : 198 1 31 77 : 0 :381 30: 3 : 5 3 19 0 75I, 1 1 39 1 1 , . , , . 1

1

1

110 / Annual Report / Statistical Tables

Footnotes for tables 1-4

Less than $500 .

Revised,

i The receipts a the States do Out Onficato the Federal tax hard.. .1

each, sine in many instances, taxes are collected in on, State from -tUrts

W another State. For exa ul,le, m withholding taxes reported by employers Ima

near State lines may inclu , ubstanti,J amounts ithhel t it I,. . nlsri,x of am

pl~ycpe, who resid, in neighboring Stalm.

Includes tax an unrelated business income ol exempt organizations .

Collections of individual -ne, tax net ithhel it inclu

d

e of it -age, survivor,

drsolphly, and hospital insurance tax,, an miff-ployniml income. Estimated

separate national totals I in, affividual income tax ar, to, ofit age, iv

d,m1bdp4~rmd hospital insurance tax,, ,a shown in the text UM

. 0 p 13

_ an

. a'Piping national totals lot individual income taxes and amp"Pient

is.. . in tab

U

4.

1 S .11-caffiloyment tax and tave, imposed b the=al Insurance Contributions

Act are

a

taxes callentad policable wi It aspect to Guam el Am Same, . Amount, of such In Guam and American Samoa are cantprind with similar taxes

reporter $or Office M International Operations-Other.

Belp aing with fiscal yea, 1957, the United States total is ad uxUd to exclude

withheld individual income taxes tiansl-a n it to the Govern mep! of Guam in ac- 0

cirdance with the Provisions of Public Law 630, spot" ,it Aug. 1, 1950 (G4 Star

392) . This adjustment amounted 0 $10.1 million lot 1971 .

r0F t Tax payments me de to banks. under the Federal tax deposit system or (he

a, I it'...Par . .:PdryxR,.1, IhIthixlean hill0 F.drrxl1 raIpd ix .d in the internal revenue collection,

Pat,- deposit is Purchased or the depo'i ry In

-ffits are issued. However. such ts are nor clus,ifical 1, at, cal

,evenun, di,40'

("0'

by I ~

ssioll-ex to which xcim tax Payment, lateral

se. ,a

Fedetal

do

as' it pe

-

entlierapplinif to the resolve's liability in th e

'as p

r

internal revenue xpri- e Yd po 1, y receipts are received in the internal

revenue offices with far returnhes 0

1 Represents credit, allawabl~ an income tax return, for callan n gasoline and

Contribution, Act(F lubricating oil tax pxgnt~ and C A

'

. Amount, Of late at ;" a, exe ss payments under the Federal 1--ce

anus fares :ollmted on Puerto Rican or duct a

1,

ansparted to the United States ., concerned in the Wand (less tet-rds, dr~ wbck ,.

and ..lpi .,a it , covered into the Treasury of Puerto Ible pride, I

p

am 7652(aX ) an 53 1,,Xl) or 11, In `-P" of

"'

Revenue Code of 19 4. The gross

a RiLnts or a i3ntPd'd in Overall cat lent to nTc-Its (tables I th , Pagh54), beginning

with 1955 and are ~hmvn separately in table 8.

, a clud a occIpationli tax OR marrulactuRm, ol sads, rectifiers, wholesale liquor

dealers, retail dealers in liquor

or

read icinal apr1its, and non-beverage manufactuters al spirits.

a ad "Itlen ; a' mUItie' ,nlc~ , I

cl accupat,

on,

rare, holeseleand retail dealersinwiner Orin wines

and be,

"

n,

1 . 're' .1"de, accur,11peal tax ., an We-, and wholesale and retail beer assents .

.zle, fare, on domestically plod used cigarette papers and cigarette tublix,

taxes collected by Customs On Im d cigars, cigarettes c,"R .tt. ,pe,x and cig-

.

'it, I u On,

1 has: and en-flaffe cap colle, tion

s

wo:'Includes, taxes on fishing equipment. and taxes on the following items which

business repeated led by Public La 81 -44 : Phonograph records. musical instruments ;

st"

a pracrapanz ~

ech,nical pencils, pon,,,.a,d j=; radio and

television Uh, phonograph,, components, etc, raftig,

,

rx, 'n-ColLater, "c' electric' gas and oil appliancex,

11 1 Pepeit , taxes an le-Ify, and total preparations ; repeated effective June 22,

1965 (Pu in

I' Includes taxes bl ' Law '9_44 ~dmissnonx to theaters, concerts . In tI,, C6, , ..f

timrdains. caparets, etca . ; foreign insurance : adulterated better and 'a'!' TZ'

ease

p T

It, POP and d-extic),,rocess or lanevnted better and imported Oleomargarine ;

1111, *1 011111111 . 1111 the, in 'truments ; interest clualiz ation ; crin..,rnxUd Kxpp .arp.a~

devices, 'a

Ming lilleys, pool tables, etc.,

'

wounia, t,ar,la,

and a..

patiorial ta

as ; ad private Inundations (sell dealing . an,. baildpg

holding. and taxable expenditures).

came nor r Gotporaficin income far rates : Effective Ea " 1965 . first $25 .000 at net in.

an' UK a'

22 percent : net income in of $25,00E) combined nDrm, ;

and suite, at aft on in ant. NOrmal tax and suit,, aim apply to net R,carae delved

by,968 1 to certain exempt organizations from unuelated trade Percent per On . . an or business . Effective UP. 1 .

- did it I bli 11~1%.

Th. to evreva, on, affirrin surch

rc M, R`.'t dad t'~ TV.1 9 , b y

1~ aLa*

a, abar * ' ' 'i ! 1. 91

and Then extended to June 30, 1970 by P .L. 91-172 at a 5 perne .11 annual at, .

11 Rates of 11, all -1 lalks- Individual income tax : [Rective Jan . 1, 1965,

graduated atipfrom 14 opreeni on taxable income nor over $5DO to 70 percent on

amounts of taxable income.

,or $100,000. Includes ld .ag, . survivors, disability,

and hospital insurance Uxes an sell-empl"mant taxable income. The 10 Percent

per an,ean mrcha,ml added by Public 1,, 90 364 . He,ti,, April 1, 1968, for in .

it i,idPnl,, a, art

'

nded 1, Dec. 31, 1969, at the x,rce annual rate (P.L. 91-53)

Old than xtan ded to Jun, 3C 1970(P L 91 172) 1 , 5 a.. . . nl annual rate.

11 Rate,

of U'

are a fmjii~s : lncai~e Tax graduated withholding in excess ef

exemption,, Public Law 89-368 . eftectill July 1 . 1961 14 to 33 pe-pi-Public

Law 91-172. afUcPv, 1,,nu,,) 1. 19i0. 14 to 25 pi,rco~l . Old-,g, survivor,. and

and age,

-1 security

It

ariyE .ndactiv0.6e

.age, up 1.

calendar vea,

.play.., M .

employers lot

up -nnillva

or October 1 .

??.ou", 31 nU .

crop ,an- rr

'Y no 0 Rod""

.... nt III (it "ua'y thMet e yer 'y

'a 1

.1 i111111 Ratified I trusO., by

the R i11 ad Retirement Board (P.L -215) . "rth., -1.da, -1-d ., .Play .,,

year p-aUHvrUx,I9.1 percent lot O~ 1 atrial year 1970 and 19.9 percent lorcalead

19 71 a. taxable portion of -9.1 .

I

and t-st- of stocks and bonds, repeated, iffieclive Jan. 1 . 1966.

Da,ft Or $sue' SIDE) to $500 . 55 crels ; each additional $500 or liaction

conveyances thereof, 55 cents

31 Cuffinpoil, read" adJ- : "posted Race' 1 . 1966(P . January 1 196 .blicL . .89 a.44).

N Under thi, Revenue and L,pend,tuto Control Act W Jun, 28. 1968 (Public

L 11 " 3G' ) a a restored retroactively, to 7 percent, affective through Dec .31 .1969.

P.L. E-614 Nrlher eixtpndrd the 71,,,cent rate through the ad at 1972,

N Repeated, an. vo

Jun, 221

. 1 65 (Public 1 .5- 89-44).

21Ar 1965. Refrigerators and Irenzals

OR aled . ffiat' 22 (,u

c 1

" B61 (Public Law 89-4 4 "

'R Ze : pOR d :411 -I"'a.n .Ri .Di'SU Q.

:1 This tax va continued at 'ithm (Public Law90 235), 10 P,, .n ' 1, joint ,an

and the Ravanue and Expenditure Control Act of Jun, 29 . 1968(Public Law 90 364),

which extended this at, through Dec . 3 1 . 1969 . Iris .to was lattar, extended,

to Do,. 31 . 1972 by P.L . 91-614 .

Repeated Ifloclil . lull 1, 19650 .1blic Law 8944),

"'T""

I

once per gunce: narcotics order blanks. $1 pal hundred. Mati.

huses . 11 ~~ X" : x ,, p nx aide, bi ..kx, 2 calls ... ). Amount, shown

also incl,deoccu"tional Pax'sUvIed the ;,i

I

rers . dealell . and P-litnen.".

For classes and rates 01 OCCUI)3tiDnxl a, . are able 14.

U Adulterated butte 10 cents Per rund . Process or ranogled or 1pu ;Ur : ~, cent

per pound. DomesticHippfiflUddic . .1, pt,pe, pound, led led cheese :

8 cents par pound . rt, It ., d b to r and oleomargarine : 15 cents per

pound, Occu"" all a,1KP1,1,,,I1W1d on mwn,f,cturers or dealers in 009, pm- .

d.cU Pit are In

"'

he mount

she n

.

I Transfer, n true Of , re,chin, n, barreled Names, M-ea, etc .. $200

sch : -ta. with shotgue and rifl . barrels, and other special

types of firinarms 35 eh, Ollup,ifi.rnll tales are levied on m,nulacturers. im .

porters, of dealers in In-ras and are induffied in the amount shown.

,,ad, cents take x, Negative 1 .9 .11, 111cluffill "PIP11iinal . a . In 1' . no SUM Plice'll

stock rU a, ad by the I Wise Tax Re action

Act Of 1965.

Annual Report I Statistical Tables / 111
Table S .-Internal revenue refunds including interest

He thousands .1 dell-I

"'!'!do" *.

.... and

Internal egions, diIt,! . .. I, .t,, State, and the,

Corporation ' .".'me

o, Lres,

Intel income

"I",

IN

I- an i

State, represented pxr~ :rxth

a" : total to ,

Is y

other

Arg].Sirill

to, shown at bell

hiet. indicated I

..

.

pr=I, the,

0, 111.)

(5) (6) (7)

United stater. tiroad I . . . . .. . . . . . . . . . . . . . . .1, loss, $6 . 3, Us, air 14. 2171, 1" eye, ous . 12, TU 3. ZU 'u. I ,

N-h-Atiamorle friel.or . .. .. . . . . . .. . . its

" ,

"1 "s 2,113 1" 71 .111 is. US

Albany . . hot 126 321 11 1 1

7 8

to :

6 61'1,

112

7 t 56o4 55

11 .94 8

200 111..

1 1 9

5

4 1

9 2

------ Boston Mrisoxrxh "in' .,ii6C)~ : :~ : :: : :

63, 5

529. 772

,

31,

.

411 6 1 17 4 3

84

21 928

- 1 ( b 1 -- -

01

11, 7 4 1 105

11

to]

9 : LI

4

: 5

2 .2

0

2

8

offust : : :, : : : :: g~ :

1 69

I

S

Z ,

K 1"

5 7 1 11 131 11 4,686 1.232

19

2.896

Buffingtor. . . . . . . . . . . (Vermont) -------------- 21 .52

, : ' 4 1 2,:

767 536 94 4

46

12.

Hart .,it .. . . . . . . . . . . . (Connecticut) . . . . . . . . . . .

Mrmlh'.H~n (See T below) . .. . .

-

347, 68 1

1, 122: 21

83,65 1

" ' : . .S

249,964

1,11 14

818

7 2

35: '568

874

5,911850

60

291

2

5

11 .201

4 3 Portsmouth- . ----- (New artitp,him). . .

P roind ... . . . . . . (Rhode island). . ---

5 5

2 15

11 41

6

4 7 2

1 5,300 69.385 1 411 193 V) 146

efflid-Aftnou, Fregirm,

. . . . . .

.

. . . . . . big:

.1 .1 six s. . 'ex ,

1 77 17 1

So: .

9

1

W'

'1 :'4'60* 1'23'

4

'7 7: 7' "1 Baltumor Newark .. . . . . . . . . . . . (Maryland and D .C.)

. . . .. . . . . . . . (No. Je . . . . . .

450,70 5

697,581

141 1 : 212 2

64

1 1

41. L631

1 o

" . 1 0

9 4458 P1Iad1,h!1 _ 11:: ~:~ l: 1w -- ~ - III 'IF 1 1 11 4 t2O

2..

7137

14

1 .

1 11

ix In (1 . . b 1rxxv

Richmond i"'bu' . . . . . . . . . . . (Virginia) ------------- -

3 : L, 2

294: ,

982

4

4D: ,02

to '7

4

0 I

'71 .'

111 .2

71 9 35

4"

43 1: 7 7

753

4.

103

5

.

2. 191

388

berarreirixt Wilmington obegroax . . . . . . . . (Delaware) . . ---------- - 57,3 9

1' ." 02

n

2 ,

U'

,

1" 'e I A ": '1 I " "'

I

.

15 2 g"79

At

t0d:baox .) . .. .. . . . . . . Binniq .

287 67 1 7

88,986

7

31. I

'3

:15 2

7

2 4 .

161, 454

115 346

6 3 1 8

3 .74 5

2 358

325

360

251

12

6

.

267239 Columbia ------ ----- South Carolina). 125,90

1 06

7 2 1

45 776

,

73

le 1

.

4

5'

458 30 7,51

7

or (North Carolina)

o

29725: 7

53

,

1

3 A '

0

:82: 3 0

: 6

3 .7

6

275

tirckson Mississilmi)- : :

J.,krice;d . . .. . .

. Flefld.) . . .

.

. . . . . . 491,222

.

57, 3 6 18,316 12 .85 6

5 491

27

136

1112

3

IGI

1 15 3 ...'esid Nnhioill gi. . . . . . . . . . Tinme ...e). . . . . . . . . . . 223,G5D

2. Us, "a

36,41 7

W.102

179 625

2, 022, N

,

6 0

1:

3. "1 844 1141'

,

Cincinnati . . . . . . . .

Cl ... land (So. 0) below)-

353.59 8

511.2.

1 5' 41 132.

298

802,

2453: "

905

7.820 1,256 536 2124 2 . . . . .. . .. . . . _ : : : : :

Detroit . . . . . . . . . . . . . . (Michigan) ..

1.312

151 594 551 700,105 11,096

706

4

1 1 . " '

Iridi3earDOI I S . ~ . . . . . .. (I ndiana) 377 :029

:

3 7 035 13 " "'

1 141

41,

28 3,29 2

4 9

Lou Is- (Kind . . .. . . .

isvil * us%

173,963 12,906 1 5 71 ,

5

3: 1

1 1

216 31 1, 5

295

gwa).. . . . .. . . . Parkeasbu~j::~~ : : : : W.. . 91,038 5,330 83 :34 3 1,450 118 "2

1 21 9"

ri.,

wast Regleve . . . . . --- . . . . . . . .

, ' _

2, ss,its US, 526 1, 943~ Des

6 468

Is"I.

916

7. 31",

78 2

,

'

Ab .,d . .n. . . . . . . . . . . . ( I. u I h D I k D ts) _ a C ic blow

9 T I D I

:

2 027

2~1211

1 5

215'48

2

1' ': '

5 ,

1

7 :1 4

3 4

660

1 354

168

Z3

5. 7R

92 Des . 1me . . . ---- . . . . . . . .

I

163,05

1

157

:_

1 11 472

4 61 3

2

883

8

3 Va ~N,rlh DIIIIII --------- -

Mlig Wisconsin e ) iii21,171321 121 471 87 7

D.

27 .31. DD6

1

117 31

1,

DO . . . . . . . . . . . . . i

Oman . Nebraska) . . . .

9l : .

out

.

12,

"1

317

7 1

2 :950 180 7 314 . . . . . . . . . . . . . .

St . Louis .

. . . .

448,638 1,0,12 .

:

21, 105 6 77 8

'

533 5

11

32

2'

I'Sel

1 31

'

. . . . . . S . . . Paul---- . .

i

336.484

7 I11 .S 2~73' '321'6 1 7U ~ 6

it

3 3

L :8S

2 S flegfirld .. . . . . . .. . (San (b) below). . . . . . . . .

R ar. on,. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

201,560

1,97,0 3

22 2 2

251.791

~ . gxl I

S,TSe age

a

.,12 4

Inu 1

A

6

Al " 2:

I IS 8' 1 L '.2

12

1

82 3

L""

A below) 125 1 65 9 .It . l 3 4 6. 237

832

3"

1 1,12

7

1 ~

31 49

,

4

C,

~S..'(H be)l -- ----- -

25.,37 9

3 7,816 81,088

0 .

I

211

L~

111 723 77 2 . 4 "

- -

Garr . ; ----- . . . . --------- - - lonnid) - 186.789 24.709 5 1

' '

4 1I 4 111

71

6

5

200

103

Little Rick_ Arkansas) -------- . . . . . . . . .

E

17 134

:

8

.:17'1 N

S, ,ti~

26 1j,6

,S~ goo_

' 501 Orleans ------

"*h Oki . . Cr Oklahoma i; : : : : : : : )

4

162'1 .522

2

14,991 121 311 1 1 o- 4. S3

2

7

65

. Wicht- an

. .

142,245

~ 2"

0, 527 17 441

" . . . . . . I, ol, Uri, is,

Seo2a

9.01

.

65

"? as. I's

I04 Archorese,. . . . . . . . . . . (Alaska) --------

-

31: 19

1,557

8 890 3 42 3 1 11

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

1,

ld h Sol . . . . . . . . . . . . . . . . . I --------,9 781

4 178

,

3 OG2 ' I

t

35~

R

3

2

L 1,

3 51

(M;n.;!!

0,

81 016

,

15 515 13 '40 IS 156 2 43 N ~. w ii

Los So. (a) below) . . .

.

1 .74

1 ''

,

232,395 1,473,859 3 21 5.112 223

3

3,

1 ph. . . . . . .

.xi . . . . (Antrim.) ------------ -

1

43: Is6 12,545

7 5

12 .92

It

2 7

257

11

S

ortland . .. . (Oregon). . . . . . . . . . . . . . 2,193 3*

5

'

4

82..

21877 IS7

Reno 1 --------------- (Nonxifis) . . . . .

Salt L.k, City-------- ~!H.h). . . .

:

I'S: 26'9

I '1

1

': '74S

01 699

3 34 1

72 .3 . 2

765 179

1,407

1

1

4 8

1,114

3

568

fi t

7,35 2

RIK 514

.

42.860

,

257 .823 111

95

3

8 73

S

om" 0 Feea 1 7" 7" 0 .. .. . . . . . . .17, s" IQ, "I Is13 :"11 IS 1 387

914 2 IS

Puerto Rile .

1

5,22 0

4

5

ID 524 65 25Z

,

5 515 114 2

Other ----- -

G . It. .. 111a,lestuarg FICA

.92 29

.~"3

.

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

: ,

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

l ~

I, OU ---

aux.. . .1 C is se re... : : . . . . . . . . . .. . . . . . . . . . . . . . . . . 2,493 -------------

- .

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

- I _ _

Total lor States not shown above

California . . . . .. . .. . . 2,142 3 1 1 331 14 2,211, 037 41,111 7 : 11 71711 10.70

5

i t

(b) 1 Illooi------------- -

c) New York

I , 1 :

14

. .

2,231 .921

3 17: 8 6

738,325

8 71 2 13

1, 412: 523

2

5D, 800

1 111

1

04 1

1 .114 449 2 s

III) Ohi

.. . . . . .. . . ` M

.. . . . . . . . .. . . 111 114 113 11

: 0

711 3:1 1

1

3 725

13: 715

2 L

1 : 5"

685

94

5

1 ~ 59,

t

Lei, P:nryl . . .ia

1) T .

1 0', : 1

. 13

792 950

,

06 397

149,325

3

79

2, 0

612, ON 24,914 1 . 51li 202

,

4.151 . . . . . . .. . . . ,

-L .. than $5 .

I includes d.wb .ck, .

to SF,gurs, have not been reduced to reflect -mbursamentatrom federal Old Age Federal Diubilitj and Federal Hospital Insurance Frost Funds amounting 7Its

-in 17

lbard 111011,011 in .1.9dO; no. 11. Hilyway Trust Fund amoonting to $122,512.000 in 197 and $32,074,000 In 1970 ; and trom the

U

remplovinnot

I rust Ford arecumlin,

S7,973,go in 19, S6,5OO,DO0

in 970.

IM 1 *111 111 h n,I "gd, Wait I%c h ecks " . I no $14

ts'allowabi on Incomel tax M65,42; for certain gasoline and lubricating oil Is, payments and 753' 1,, excess Social Security payments under the Federal

I x-riec. Contribution Ad (F ICA).

Table 6-Number of returns filed, by internal revenue regions, districts, States, and other area s

I

ntair-I revenue regions, distdricts, States and other

areas (States represent red . both . -'district

base, ;

tar t h

tested

in State :

,h we .1 bDt= table

Total I

(1)

I.di,rdir

ar I

I

I m . .. I

(2)

tirm

Inc

. ..

INIe

to.

(3)

Prition

I -

Ship

(4)

Do, statio n

an." outi.

ed ta x

and all

lot h

(5)

E priyartin axes t

(6)

Exist

. 1

(7)

Gil l

ta x

(8)

.e.,

(9)

U.11.4 Istuarear.. I .. . . . . . . . . ----------- .,. "Is, $a.

1, 1 ., bus 1, US, 127 9,173 .111 st, US. US U1.02 US, 4 .1 39 Usip 7"

No,th Au eler,

1" 43

4

`13' $39 "70 :74 6179 n74 250 Sl 829 $804 45 Z

;a s

At -

n

kidate -- -

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

60 9

538, 121

6 7.07 1

364,427

16, 1 2

' 7 'S T

013 110,373 711 632 8.613

i~t*n . ----- ,33o,GI 4

3 728

764

. 31 : Sort

609 3 5 5 5

2

I I : 1 ~

97 056

I : 111

34 307

31

'4

2

111 ; 111 I

I

MI

:

6 ~137

14,

6 7I

2

'5: 7 7'1 4 '2'

I k,,;. . . . . . . . . (Sea

(c) Imeri) -------- -

-----------

(See (c) below). . . . Buffele

. ,

2, 112 711 1 p 7 17, 017 '

,

4D. 857

.

19, Ole ITS 59

9

IDI, 311 3,504 3,185 28, : : : : : 17 7 - -

Do

2 .

62 :

.7 1

69.345 4,816 2 .215 2 : 393 59 .669 3

20 3 NN

3 :

Hart ' I s

Did .

--------- -

Mar So. hot..).

1,915,994

3,8D5 280

1,309 .55 5

2,173,784

37.730

144,217

20,388

42,068

41 112 1

..

3 3

IT 6

0. 7 '

"D

IS

,

8,853

16

83 3

T 31 1 1 1

Per 11 '*

413 : 063 286,443 7,872 2,379 36,032 8 411

3

6 0 606

1 : 6 7

ad, land

Rh 565.870 02, 246 14,341 2,272 41,319 95: 363 661 590 5,078

2 :'1'41 7 13 , 117 11

To

Se41e 311

Us' S.

14 211

1,

n'. I

196 11

s .. ... ..

113P 115

So, U

.S.

2P

, 36 3:9 0"

'1864

N .. Ik . .. . . . . . . . . . (Now Jersey) . ---------- 4,147,869

4 011 1

:

2,933 56 2 8

780 112

L 2: , 3

00

IS 366

39~ 740

38 797

340: 21 0

358 818

787,285

729 291 " : '4 4

5

J : : -----: - 412 14! '505N Is3 .: I 0

Philadelphia . . . . . . . . (So . le~ ti,~Dnv

be, ----- --- (So,(, be 1.

p "

2~ 2.: 10, 1 .

:645, 363

.

23.376

,

23PS26

.

199.068

,

371 .992 21591 2 111 3

'

rm~ _ :

RIlls

l ) '3 6711:179

IP 14

20111 31

so. 53 3 6

7 76

21,1194~1

1

111So 7 : 10

1 "69: 11922

52 6

" III

1: 2

It55'

27 :

3 251 Wilmington awar e . - S --------- D e

. ex"Wern ---------

--

"

11 21

.

1 " " '

.

'I ..

1. *11, IIl 1.1 1 1 11 11 111 21 1

2

.

11, 11 1

Atlanta- ------------ - 2p293,187

0

1 541P 89 32 :18 4

IS

7:0

2, 21 3: ,

54 07

1 : " 1 3 :

27 7

21: "1

Bi . glmugi, J !m : ,h . . . : : S1,brxra),4j C. ----------- - 1,531,271

1 214 1 2

1,042 8 Is5

'

7363

1 27 :71

8175

11 1

67:6582

3 :11

213 8535

8

1 : 0131 1 : 1111 12.1:11"1 C S .

Gneemb.n.- (North

2: 5 :,11

1,710 111 37,041 2D

24 ' "0 ..

2

1

4.634

'

2.248 3,430 28.92 3

113 121 1

3 '9

,

111 711

" 52

:25. 11 :83 86 2522 9 :67 7

316

'9

19 8:3 6

1

232.223

3

1 1

7 23

"

1 27100

11 3 1 7

42: 13 2

hu,h,111- ------ (Term ....e).. . . . . . . . . . .

.

1,94, 831 1 322 11 1-1,131

:

2 1 287 112 111 3 "

5:

43 72 1 1, 11 1 1 111 23 4 1

.. . ___ _ . . . . . . . . . . . . . ..

.

. . .. .. . as, .6. so ,

: .,~: .

So is

"4 .16T 2"'s" is

1

1 ` .1 0

2~

7.0 827

17 1 31

lot:S

Cincinnati b

~'S:: ~'d b:l..)):: :

:3

3 2'1'4:406..

1

'

:6

2 28.. .788.. I5 . :"35 '.

2

1 1

2 9

2 :2'1 1

:3

7

86 5

15 3 509

414:23 9

578 994

3: 6

Cut

3 987 '4:

2230 21 .83 5

3 "

Cleveland

Detroit -------- (Michigan . . . . . . . . . . . . . 4,426PISS

.

3, 191, 111 58P 357 37 .224

~

320 038

7 ,

64,644

.

----- ) 4,032 5P 195 44: 5 1 )

---------- 2,634,023 1 .986,308 35,090 18,627 193p34

1

e ,: 461 556 3 111 3 111 21,11 2

W t Vi inia)

I P 505P 650

812 451

1,037.055

5GZ 931

18.755

11 145

16,94 7

8 318

98 7

. 28

52 155

3,4 : . .

164 279

I : 111

765

1 :8%

841

16,584

es rg --------- 12 01 4 AndParkersburg. ------ - -

- x

,

16, 459, SU 12,222,300

.

Us. .12

. ,

1 .111 111

,

Sep .1 2S.I0

.

221,111.

Amrdeen! !

gmt; oxaiD6- -------- - 356,476

"' 1 '2 4 1'1 4

93

1

23 1 :7 1

14 712 711 121 1 .11 ,

Ch cage------- ---- See (b) hot..) ---------

1" " '

111

1 32

69: 321 45: A

94

405,507

7 17: 9

57

~ 1.

866

33 :109

I Moines (Iowa). --------------- -

k

" ` ")

1 587 : 5 4 5

33' o '1

1: 0 3: 516

5 7 "

21 .683

4 ''

20p81 5

452

142.747

4

7

21 '

7,394 3 3

80 917

4.59 7

93

3. 167 6

12

236 627

S

2

3 ),.

M' L : : ::~ : 'U" Mi .aje : . . . ((Wlscm or"o n 1,U1 1: 4. 1 .111 OS : 7 39 S: . 3~ 171 3

16 "

.

I3 3' 3 '6 5

IS

3

.

., I

Omaha ------- - 70 . .: 862.655 560,493 14,034 11,177 70:431 187: 122 2 :26 1 2 :659 14, 47

S . Louis Mis ) _- 2,510,437 1,680,797 42,056 21,63 6 209 796 514.980 3 .110 3pUZ 35 ,

2 C St. Paul. Mi.morel.)-------- . . . 2POI5.454 1,408,504 31.663 20,694 1 50: 7 89 370,248 3 .208 2,609 27. 7 S

Spirmulfi _ _ . SU(b)bcIbvx) 1 111. 379 1 068,27 7 15,727 17,779 128,408 31 4:113 3 2,111

1 ., 8

6

_ : :~~: : : S2 : ,

%84 474' 48932

Is r : e

33Sol2 -

' 4

Sit

I` u s

U

UG: nO272 $1329: it320s

go,2 .2.

2' 103 890

.7

3 86

22, i n

72 1

it .,

"2

1 "1 Alboul. .. . . . .

Austin --------- (See (1) below)-

,

3,146.720

:

at 2,2 311 41:111 A1,896 211,628

.

698,778 1

7 3p 15. 1 2 6 47:13

. --- 4

Obey- - . . . . . . . . _ (WY-,inl

2

03,3Z2

12 t o1 I I9 .

2 872 15,189 49P312

'" " 3 "

,,

Dallas- . . . --------- (See be ow)_ . . . . . . . .

Denve---------- . . . (Colorado)

----

2,664,949

1,211 12

1

1 .7 2:473

$26 .633

40 :93 3

22,317

36:57 5

* I 4 I

196

: V13

"

4 730

1'42:

Ito 31,51, p 071 4 .66 9

2.368

35: 1 ,

18,01 1

Little Rock. . . . . . . .

. (Arlum-) -- -

,1,:

017 601,746 13 4 7 :1~ 7 . 5. .B l 211,I4D

787 1 294 1' 03 5 New Orleans (Lindst.m.). L I 1 0 13 1

3

1 .071 14 30 111 1 441 IGO 6 I 377 .045 1 P 1 64 : 7 51 25: 69 , Ok

Items City. . . . . . (Oklahoma)

K

: :

3

. 17 2

1 230 789

: ~

87 8

0

11 3

I9.G D 13 3' : D

12 457

~

194 64 2

03 395

277,62 3

264 96Z

1 .89 3

68 1 2

163o"1

3

ig~ 12 I

an 27 i . . Wichita- . ) ---- - -

va-in 114.4re: : .. . .

. . . . . . . . .

, p . .

set, .

" ,

a I at

,

1,111,121

,

11. .1

,

22. .1 27 ., Sir

Anchorage ---------- (Alaska). .---

Ise III OG Zog 2.558 ' .89,

5 062 27 .315 69 7

Z

3

Bom 11 ~ . . ~ ----------- (Idaho )

11 .14- . . . . . . . . . . mortate): -------

376, 14 0

11" 172 2 33 241: 3 3113 !J67 6 71

4,693

1.051

24:11 3

30,783

11, 31 1

88,951

117

735

111

1,233

:

12 1

10 .11 : : : : : : :

(Hawaii)-. . . . . . .

o"lud ----------

423,526 300.679 7,905

11 71 3Z I4'

73 021 354 .24 4 63:

Los Art i (a) lbrilri .)~ . . . . . . . .

IS

1 .775 193 4,732,3117 Ib.33G 711 .71 120: 1 .2 L .2

':OH` I IS' 7 "1

1 9: 9

(4,

Phoenix- tons)

Portland. . . . . . . . .. . (Oregon) .- . . -----------

: 913 97 1

1 .110,31

6

30,95 5

717 111

13,908

18 371

LILT 3 U

.614

728,: 31

614

171 ~38: 1

22Z

1:01 2

1 .590

1:116

1 P 85'

10 .

19.531

A no-- . . . . ------- (N .vad,)~ . . . . .. . .. . . .

30' 1 2'

21 . : .7 :

1 1

421 1111 54,607

226

U3

' '

:~

I It Uke

---- isI 'k

City

113:419 356 .394 1,00 5:6 2 LID 97,052 387

721

1 : 37

Is'. sm, ! t;efow~ _

San F

11",

: :

SUIT,

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

twashmglon)~ . . . .. . . . . .

4:,30 5 493:1271 31 :20455, 1 6 6

1.

47

0

46PO3 1

28.825

2157p.877408

3

76~457

139P 144

874,659

356,244

1,334

2,246

6.6 3

2,021

69p 1 5

31 42:

am . . of 1--lem.1 0-lorlear. . . . .. . . . .

Puerto Rica. . -------------------------_----

sm. us

237,GD4

111 1 82 : 14501 2 :

1 318

2 "10 " a n

11 314

a

46, ate

137 291

U6

16

$it

33

"

i

65!

Oth.. . . . . . . . . . . ----------------------- 356,283 315.273 1,083 194

2~:

.92

9

:185 870 482 49

(a) C.Ift'di.-----------

1b) 111irmi--------------

"Fix l,rl,:

Ohio

(t) TPennsylvania . . . . . . . .

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

11 .269.164

t 871 6.11 11 :1

o

354

5:639,685

6,300,083

5.911,669

Total to, state rmt shown be,.

7

42S: 224

7,147,227

4,111 a 425 , 475: 7 01

3,923,824

114

"

":

141

298,254

NIs 7Q: "?

84,824

63: '273

102.812

,~

: Us

31

..

71 .471

533 M: 21 'S

439 "0: 966 ..

547, .

408,137 '86

~13' ~737

71 342

2, 2 I Is IIII

1 28 1 93 213.

323,508

160 :475563

18,035

1 013 :3 1

6,188

130 377 : 6' 7

197.265

617,6I

9,795

141 143

52:

372

98 79

54:028

68,295

83,922

I Igealudexreatim' led tax declarations not available

by

districts !7114"

ddit o to For., 1040and 1040X,i,cludes 136,587f., . ON R1 Tmftl-Po . 1040 and 1042 which also are in "all other individual and fiduciary " returns in the table

on D. 14 .

Annual Report / Statistical Tables / 113

112 / Annual Report / Statistical Tables
Table 7-Internal Revenue Collections, Cost, Employees, and U .S . Population, 1942 through 1971

G . Ga. . opulation 1,

umber of employee s in .. ... GO -

actions

I,

TH"i

IT )

o-rds r

Isacal year too

.

ripit otal .N.Pa' ah, ~ offic e

(3) (4) (5) 6) 7) 8)

" 10 1 '''

13 4

'

' '0

0

' 1 ' ''1

1 : M 061 29 736

1 1,~ . 1 ~ 111

:

22 M : 3.: 4 7 4 4 31~ 250

1,~ 0G

1

"

3th1 11, 7

1 7' 3

1

411 : 898 21 4f 14

8

23

1 '

3

'

3

4'0: '16"8

11 :

82

1

11 1NI I

1

5 73

114

~ :

14 3 20 4 .. 387 7l

~

3

43

9

41 36 6 55

,

9 693

:

,4 54 9

1946 . . . . .. . . .. . . . . .. . - ----- 74,795,640 40, 672, 096, 998 . ,

. . ,

. . . .

203 111

' 1'

3 12

'

"N I ' 1

1 111 1:11 830 7 4 M

059 O' D

183 : 7 1 1 :

:

4 : TI ~42~ M 4

:

7 2

.s

7

4 9

270 17

1

l "Fit, - 4

481

211 41

EN '2'

3 21 IT: I

1 ~'

II 111 2'7, 1 : 7 .

55 84

"

5 551

:

03 24g

"

2" : 2

: ~ . , .

8: 117

4 5 686 31 5 9 4 878

.

5 71

,

57 5 4 0 3 6 5 1951 . _ 45,869,538 50, 4 , . . , . , , ,

''' -

71 11 2 1 12 1 5 " 11 51 12 1 5 1 51

3

4 -11 1 3 1 :

4'

5 2 1

! 913-: : :: : - - -- -------

IF : ' ~: ,, ,

2'

69 ~ .: 535~ 389

31 7ut

3~

31

1 60 :

18 4

11 3 021

3 0

5.

428 89

5 3 : 46 3

51 411

8

3 34

2 707

9 6

. 48 :76014 . . . . .. . . . . .9, .

21, 278~183411 11 :27B7 1~2111 .!)9

2 000

66 "' V

2 6 l~q

31 9:50

,

0 890

.

675

5

,2 1

56 299,894jiff

:

75,112 .649 000 40 68,903 44.71 :682 5113 ,DD S

305,537,814 80.171,971,000 31 1 1 114 66 16

:

,364 2

'60

1 :7' 9 N

51 337,428,789

4

7 7 1 4 1 4 4

: 2 ,:

882 457 3

44' 13

81 6

50 200

8

3

2'6633

I

19 7 567

" * '

''' J9 "'

' ~

7s 7 7 06 4 1 7 7 .1317 ~

07 0 99

' "

.

4 9

1961 :: : : : : 311:7 5:359 ,774,BOZ,823 0

44

, , 6,

1930:672 3 97

,

list 3 6ho 031 64S . . . . . . .

413,295,238 94,401 .036,398 . . ,

11, . . . . . . . 41,080 420 111 : 4-~g 31: 141 :4 , ll~l11974 3 81 17

59 :

5

59: 481 0a

5

I 3: .1Z :9Z2

963

, 4

l4ij:'242:131

81 ,q, , s , 3,15

2 11 5

. . . .. 0 '

11 11 1 3 357 53

~ 1 597 38

1 . .

'ZI

. .4 33~

114

2

4 237

15 360 7

90

l

1966 .. . . . . . . . . . . . . . .

'2':

86, :929 8 879,1)(51,342 8 96,485 5.93 ,6" 816 ,8E

661 .080,29 5 1 .. 174:81 4: 552 1

:4

11:1Fi121if

200

ii , ~Ijl

'7

5~12

77'

if6

3 : 301 2l: '1 699 .190,30'

5

' 7 ' ' 4 7

~,, 837 6~ 5

V87:919,559,668 G 1 111 1 7 1 4 D7 37 47!

7'.8 6: 1 59 ~ 1 6 2 1 ,722,09G,497 41

: "

11

60:67 ,:

-

3

: 5 `

4

3 .4~

64

1971. . . .. . . . . . . .. . .. . . 981,065, 297 191,647,198,13B

l,

07,006 27.02 ,987 4 5 2 1

Revised .

Table 8-Internal revenue tax collected on Puerto Rican

manufactured products transported to the United

States, by object of taxation

Ilin thousand, of Billiusl

Object, .1 Filiation

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

D all led :PPId I ------------- ------------. . . ~ :~ : ~11

DIAI ad its rectification far --- . . . . . .

W I . . ... . . . . .. . . . . . . . . . . . .

Blm Chat,.Glas ;i ~igs . . . . : . . . . . . . . . . . . .

.

A_ ------- :] : :

ciC".s.' G ------- - ------------

C ass D_' -----

C C1... G ... . . . . . .. .. . . . . . . . . .

. . . . . . . . . . :

- ------

1970 1 197 1

&D, 219

11' :~0'791

'3

90,707

8P.197

63

9

6

andNote.-Amosuati, of internal revenue a Puerto Rican tubeliquor manufacturers transPonte to th IF tat" - . Llni~'.dtlltahrs d . or consumed in the

Friend ,varied into the Treiisury ol Puerto less refunds I . drawbacks, and expen,Ge5s,)', ate c

th-tionaho,tede, the C 0 Won, at atic, (.X3) andd ~hl intoga

5'

14(a) a '

do

jn!h~954. Th. gross amounls,,are incle ad In ovinat cut ec ions h

iesults (tables ough 4). beginning w t

Table 9 .-Establishments qualified to engage in the

production distribution, storage, or us of alcohol and a

alcohol.. 114uor s

Class OF establishmen t

Distilled spirits Plants :

Plants not number) -------- -- . . . . . .

Facilities

Production . . . . . . . .

Warehouriez .-

B:ttling,in bond---- ----- ----------- ------

D ------------

Ta napeld ol-tling . .. . . . . . . . . . . . . . . . . . . .

Balloting ----------- - --------

Denatured nrltax4ree Peducts (dealers, use, q

Dealers in peciAly denatured aloha and d4a"tiu)md

Users of specially d

.

e

. a - Harpu'mace'~, rellultilariMwed-a-ic, . ;i6 oW_ .-n* d' denature d

., of specially denature d

alcohol articles . . . .

As of Jan. 30

1970 1 -1971

325

211

50

41

3,419

95 3

7 329

1 5 Bee,Users of tax-free alcohol . . . . . . --------

Be _~~] .eles. . . . . _~ a.

W 'anded win, cell B

Ta .paid wine hot"' ling _"U~s

vinegar put-ii proces . . . . . . : vinegar Factories using va

Beverage dealers :

Impair is . . . . . . . . . . . Who al h.j, : w ,a do' ' dra12 1in' lbarl'-"

R tall dealers in liquors . . . .

Mail dealers in beer ---- . . . . . . . .

. . . . . . . . .

OtherManufacture'$ i Of min-bowage Products (dTawback)-

Fralt-filivared concentrate Plants ---------

Battle manufacturers . . . . . . . . .. . .. . .

!act des 4 experimental distilled spirits plants.

.dudes 12 e"Perimental breweries. i Faced ., a

experimental bonded wine cellars.

4

65

3

131 567

3 :

283 1311 0" 234 :706

7926

1254

1324

2'g 112

36

4 2

3,394

7 . "26,1

1148

51

3

j.1 71g 111

5,871

211 "& 0:5341

6

765

12U5

Table 10-Establifshments qualified, to engage in the Table 11-Permits relating to distilled spirits under

production or exportation of tobacco products and chapter 51, Internal Revenue Code 1954

cigarette papers and tubes

CMss a( establishment

Mru :,d::: : a - ------ --- a . Itobacco products

M do cigarette papers and tubes, --- ------

1,baccoerpo,tw,r0qrrs,s_ . .

.1970 I'l

l

As of June 30-

2034

139

1955

191

517, Section 5271, I .R. Code

I .R . Cod e

Distilled Dealers

U of-

'pi, I

'the1 1! 1-ia171 I c1la1.1;

lental d . . I*,,

alcohol

'or . I . r.j

(3) .[-he (4) ' (6)

eftKt July 1, 1970

'F "'

,, 1 1 4 1 , 411 1 1 1

old. . . . . . . . . . . . 4.1

5 , ,IS 2 : 77,

Terminated, total . . . . . 1,5W IT 7 39 2 ,039

R_"d_ . . . . . . . .

* * --- - --- -

Otherwise

tarminated . . . . . _Z503 17 7 38 2 .339

reffectJ-30,1971 . 10 .895 194 1 ,311 1 . 11 1

Amended --------- _ 595 11

1 17, 3,5

Table 12-Permits for operations relating to alcoholic beverages under the Federal Alcohol Administration Ac t

Distilled spirit,

plants

I

n d

Dr. W", in'

Status but. Total 2 isli ers arehousfinj alltlen, d

=

h ~ nd port . 11 1

and bottling

. a

all bl

(2)

(3

(4) 5) 6) 7) 8) )

In effect July 1 . 1970 ------------------ 546

"

nund 44 60 77 56 3 1 5 3 3 1 31 1 1

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

3

1 5: 8 9 9

2

2

,, 7 2 1 :

00,

Terminated, total -------------------_ 1, 359 27 9 2 3 Z 4 6 080

Revoked. . . . . . . . . . . . . .. . . . . . . . . -------- 7. . . . . . . . . . . . . . . . . . . . . .

------ - "

. . . . . . . . . . Othowls. terminated . . . . . . . . . . . . . . 1,357 27 9 2 5 2 .. . . . . . .4 " 07 28

a affectJoet,30,1971 -----------------

11-"1

31 10 7 l 0 6 1

Amended. ---- ___ . . . . . . . . . . . . . . 1 14 4

lFf . . . . . .

. . .

. . . .. . .

. . .

. 5

6 9 8

Excludes ?ermils for customs manufacturing bonded warehouses since such establish mentr5eare anoutiresoujInd to quality as distilled spirits plants.

Coiumn does not represent the sum of (3). (4) and (5) since one permit may over an tha ac ivity .

Table 13-Pernalts relating to tobacco under chapter Table 14.-Label activity under Federal Alcohol Ad52, Internal Revenue Code 1954 ministration Act

M... ...

State,

"t"

for,, of

.P .r .

tobacc o

product,

a,.hoa,,

Proprietor s

(1) (2) (3 )

In effect July 1, 1970 .. . . . . ----- - - 311

1

99

'sa.d _ . . . . . . . . . . . 23 8

Terminated, total . . . 59 33 6

R r d_ . . . . . . . . .. -- --- -- . . . . . . . . . .

-

w . . . . . . . . . Ginn sOl,ranifted, ---- I . j 6

J u

In ellacl ne 31, MI ----- - --- 384 93 9 1

annunded . . . . . . . .. . . ... . . 73 31 2

I yp, of labe l

Grand total . . . . .

Distilled Pirts, total --- . . .

Dme:shc__ .

Imported_ .. . . . .

Wines, total, . ---

Domestic . . . . . . . . . . . . .. . .

1 reported . . . . . . . . . . . . -

MalI beve rages. total . . . . . .

llrqllfil : : :~

1

. 'Prod

Tota l

60,883

17 .303

13,43 6

3 .867

4~,53 1

-16,23 1

25 .300

2,049

1.513,

4,

Applicat ons acted upon

Ceffiftelt, .,sued

Approval ,

59,95 6

16,92 5

13,218

-

3,70 7

41,003

15,99 8

25,005

i, 02 i

"4781

Everans.

lien,

16 1

38

38

123

123

approved

766

340

180

160

405

11 0

295

114 Annual Report Statistical Tables Annual Report / Statistical Tables 115
Table 15-Number of occupational tax stamps issued, covering fiscal year 1971, or portion thereof, by class of tax

and by internal revenue regions, districts, and States

Distilled spirits

Total Rectifiers Retail dealers Mandfaclufors of non.

di i d St (St t

no her

f , - Marc.

beverage products

e s t-l revenue egress. str cts an ates a

d d th .. . a Nd b t i t i di t d

o c u

dationil

I

a

Whdld~ -_ M I

' "

e

hopesee y -; o is r c s n ca e in pa -

la, to, other States shown at bottom of table) tax U111 5

c. L

. .

20,000

le inst Hot are

clients

a

d

th

Plant

doxhir',

spirit,

ex. 'n,

tha n

"sued lUix

20.

000

lallons

$225

Real

A,

$54 cee,finj exceed 50

$55

or

Of

F

Or

eal,,s o'g o

$54 ton get s gallon h`g SOs

go$1 1 t

ads' 0

once 422 0 .

(1) (2) ( 3)

(4)

(5) (6) (7) (a) (9) (10) (11 )

United St"" . . -'I~ - ---- ----

go U4 Il 105 I.S80

I- A ewdid. Regio,n . . . ------ . . . . . . . . . US : Se 1, "I "1 11 "1

1

.

778

t

' 1

1 : 122

111

21 . .

xx

A Ithary. . . . . . . . . . . . . . . .

. (So, (,~ held .). . . . . . . .

A (Main . . . . . . .. . .. . .. . . .

"" : : : : : : :

: I --------- ,thston, : : : : : :

Massachusetts

C,

633

5, 12 Z

13, 171

:1

. . . . . . . .

3

------ -

. .. . . .. .

-----

------

3

'

o

81,

s 10

. . . . .

-

--- -

----- 5 2 2 1

-

-

Onmuklyn ... . . . . . . . . . . . . . (See c) hot..)

4S

fl - ----- -

2 42 6 963 15 ------ -

------

2

5 t

Buffet ~

in

S' ' ct b" ' )

3 : .15 5 . . . . . . . . . . . ---- 26 8'66

2

1 . . . . . . . 1 9

Burlmgio~ : ~ , , re i ) d! . .. .. . . . . . 2 .679 ------

2 2,

1

31

592

4 969 15 1 Hartford Man . . . . . . . . . . . . . . . . (Connecticut) . . . ... . . . .

1,11,n b1 l

S" ( ) ')

14,938

1

4 4 ------

ful

.

1,19 16 2 3 3

'arl'uni o , r P

~ 'r a sh ,I ; j

N

DO

2 : 3 3 1 652

1 2

rovided... . .. . . . . . . . . .. . (Rhode Island). . . . . . . . .

hi-Aid.-I ill. . . . .. . . . . . .. . .. .

.634

' ,`,,

5 1

15

S

60,

3 .1511

. . . .

--- -

d D.Cj~__ : ~ . .. (Maryland a ,~ 273 . . . . .

2 4 57 5,227 4

n

(Now J.'sar. . . . . . . .

Newark -- Plfllxdrlir~ - : : - - ( 1 ,

"--

27 82G

11. 031 1

,

2

III

4

74

41

12,431

11 11 : 1

7

4

. ..

_ .

------ 3 4

:: ... . .. . . (S~

:

Pittsburgh

Is 3

87

. . . . . . . . . . . . . 1 If 14 ' 47,

557 Ii 2 7 Rich,ond .: : :

I'

15 11

.

:

1 ----- _ 3

7 856

1 - - -

--------

- -- -

------- -

- - --- - Wilmington ..--- Delaware) 1 966 . . . . . . . . - -

I

------ -

I -

U I.

I - ii- I : :~: iii

.uld'ein Real" . . . . . . . . .. . .. . .. . .. -. . - -

At a G i )

I'13-441111 43

.

-----

1 2

. . . . . . . a :.n --- . .... . I . .. . .. ( eorg a

i in h (Abb )

8: 708 . . . . . . ,

Me C on g .. ... . .. . .. . . eens ----- -

lumbix, South Carolina ) Z 215

. . . . . .

- ------ 10 1, 117 1 1 ------- 3

. j North Carolina ) I3,

'''

. . . . . . - ----

53 217 . . . . . . . 6

to

T). . .

8~ 7 19 8 82

1

. .

2

------

--- 31. 1!11 ---- 0

:: : : .

21 6250 5, 09

859

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

.

--------

i 7

14 359 ---- . . . . . . - .

1

4u

is

S79

. . . . . .. . . . . . .. . .S

_,_x . . . . . . . . . .

' (

Uel

99

' '

.19

111

.

5,413 6 -------- ------- ----- 21

C tied So d 2 851 2

1

06 , ------ 2 ~ : : :

I T

9

" Mictin ii) --- -------- -

d: i

30,911 1 2 2

1

2 2

2

I2 : 2 1

6 302

C

2 1 -

1

I ed a )_ . . . . . . .

: ::

3 7

----- 21

2

4

6, 1 .SO . ------ - ------- -

7

Locirivd d c

Parkershe W,,.,,t V I),

""

2

N2

.

V

. . . . .

y-It

:0 to . . . . . .

5

S11O

4.1

13

7

I

5 1 .29

Ab.,de 1

: :

: ~ : : : : : - : : : : (""' "k"`)j:: ------- 3 :4 '

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

5 12 5 2 134

. . . .

239 4

----- -

Son 3 6 i .In. Chicago- _ ( b

Do, Maine,- - ----- . . .. . . . . . .

"

2 . N 2

11 .024 ------- t 3

,

3 11 1 :0471 :: : : : : : : 122 7

To (NDrth Dakoa)_-

_ : : ' "a 1

o

80 13 012 1 150 1

-

2

1

(Wisconsin) .

Ourah . . . . . . . Nebraska) ----

11,834

6:

.. . . . .

. . . .

------

- 450'

.

'. 3D :D . . 2oS" I1

------ -

6

4

S, 1 5

L. .i

St . .. . . . . . . . Paul (M

U

1.3

16.565

5

-------- 1 14 3,109 156 26

------ -

1 -------- 14

pingli,ld . . . . . ---- (See (b) below) --------- 9.662 4 2 62 4,693 2 3 -------- -------- 5 Uve .

1A11-1 Flool--- b - Us3: f3aI1

.

3.1

25

is: m

350

in

1

--- 1 2

- -

3

-----

3

--

6

-- -- -

ri'd

m.

Austin . . . . . So. (f) be --- 35,645

. . . .

. . . . . . . . 124

'

2 382 1 4

, in l ) -_--------- -

'"

1.541 -------- ------ :

14 2

3

fi2

S

f

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

z

: : : b ,

Calla,. . . . . . . . . IT W)- -----

of )

.

16.096

to "'

4 . . . . . . . .

11

,

3, 1 31 48 ID6 -------- 2

1

1 , - : - - - -: : -

R fA k.. Littl . . .. . 5:1G3 _ : - ~

: : : :

: :

. 75&

r e

_

NO . Clean. . . . . . . . . . . .. I Louisiana). . . . . . . . . 17 712 1 ------ 41 6. 111 :: : :: : -------- ------ -

:

:

Oklahoma City . . . .. .. . . . . (Oklahoma). . --------

2: , , : : : : : : : : : : I~ ~

`4

: : : : : : : : : :

: : : : : : - - - :: : *

chfta . . . . . . . . . . . .. . . . (Kansas)

.

. . ~' . . . . . . . . 8,7G 3

S

. .. . . . . .

as

. . . . . .

8

------- -

30

33

69 1

1.208

40 652

_ ----- -

is

I

21

-

9

-

y_ m fo

R .1... . . . . . . .. . .. . . . . . . . . . . . . . . . . .

Anch"11111 - ( At 1kQ

a

I O, a I s

" 31 ------

9 ,6

83

--- - -

.

-------- __ - - ---- - ------

- Be,.. : : : : : : : : :: : : : ( :

Idaho) --- 3,4

8

49

6

---------

.. . . . . . . . . . _ (Mortanni)--- 3 :11 1

2

8

82

-------- ----- -- 36

8

1 .

9 2 Honolulu .

----

'yo u Los I'. (a))

S

54 .3 82 13 X 1 .21

?

f 4!

Phoenix ---- --------- (AlivDne) - --- _ .. 7 749

------

61

9

2 .1 7

1 9

----- - -------- f

----- -

1,11,nd ) _ - - : :

(Do rd" 1'0~328 4

24

.26

1 430

------- -

4

-----

ifi* ------- ----- -

.)

nono H

Sall L,~u (Utah) -------------- 4,322

42 415 ,

------

5 s

~H .

9

, 2 It

12 4 11

. . .. .

. .

1

----- -

------- ------4- ------ 2 - Se

d rfanc See(a)below)-

S f h t ) 60 1 93

:, ,

3 1 ---- . . . . . .

2 -_ _

nuf ------------------ Wa s ino or ----- --------

1

b

y

Total$ fog States not shown abov e

(a) California----------- 9G

' ' 1

7 21 111 17.112

11 7 1 3

a6:

,A)

Ifhours .

:

38: 521 4

2

7

3 '

7

114

11 1261

26 616

Ili

2

4 2 1& York 311

":

T

I,

2 217

~

14: 550

~

8 2 3 ; ~d ) Ohio . ~ . . .. .. .

5W

44

45 905 9

------ 5

54

'7 ' 4

. . . . . .

-

3 4

3

!

~ )

(D penfl,yiTexas . .. . .. . . . . . . . . .,

51 .741 9 --------

_

--- .- 227 4:Orl &0 5 2 1 2

Y

I

Table 15-Number of occupational tax stamps issued, covering fiscal year 1971, or portion thereof, by class of tax and by internal revenue regions, districts, and States-Continue d

W ine Bee r

Whrildille dealers Retail dealers B Talmudot-al revenue recions, di st ficts, a nd States (St I

I'll =

Rmall

cooled by single districtsind,cated in parentheses, to

W'.I"

Retail deal . ..

`

.the, Stausshowea t bottom of table)

Wines Wines

500

"' ,

dealer

"

at Indoor

'in.

" ord Wide,. and barrel,

do ""'

524 large (wines

$225 be .

r.

$54 beer or ..,a. $123 $24 Or be., )

1255 110 .

32

20

P;

r

- oth

1

(12) (13) (14) (15)

1

(16) 1 (17) (18) (19) 1 (20)

ti gUiney. Utal___ --------------------- UG 743 210 SO, 202 ISO 1 "130 IN. 437 U 4," 1

...on - ----- ------------------------- 71 g, 026 2 . $90 US 51 $21

Albany- ----- (See (c) below)- - - . - ~ . . .

I . .. . . . 1 9

4

1

6

2 :

206

5 3

August B sh . ------------ - (Maine) . . . . . . . . . . . . . . . .

e on .. ------------------- I A. ax. husetts)---------

9

1

2i

7

4 3

3

6 1 7

183

. . . . . . .

4

1141 7. 1

93 . . . . . . . . . . . . . . . . . j j

Brockly .. . . . . ------------- (See (c)

1

2

1 2

8 1

1 211 1 141 2i .. . . . . . . . . B

__ -------- (So. (c) b W) 7 65

4:

742 7 29 4 Burlington_ --------------- V

Hart d ------------------- (Ca

r

I rd

di=lunj -- : : : : :

21 23

3 Rif

1

1

31

83

1

21

'

. . . . . . . . ~

. . . . . . . .

5

15 1

Manhattan- . --------------- (See ~) below) --------- 23

2 If,

1 3: 2 2 C

.

-------- (No. di.. . . . . . .

P - ry!roncth_

. . . . . . . . .

--- --- ,

1 24 1 .287 4 7 P m d _ , . . . .. . . . (Rhod

.

Island) - ---- -

haid-A J .nII. ... .... . . . . . . . . . . . . . .. .. . . . . .. . . ----ii - Is

17

I.-

1

I

I 2

. I So

3

.10

7

7 U2 Baltimore------------------ (Maryland and D,C .) ----- 1 4 1 414 5 13 1 . 1 ~1

. . . . . . . .

IO C ph

iad So beEi

5

2

3

1

1

'0

0

34 389

pit . . . .

mh- e (e 1helow) -------- -

IS" - _ " "

.. . .. . .. . .

I --------- 3

1

23

118 736 D

02

77 7

1 '

1

. . . . . . . .

R chm 1 o v ih ) 134

: : :~ : :~ ~~~ I, me 4 75 1 3,323 1 64 3 . 37 S 6

Wilmington --------------- _ (Delaware) -------- ---- ----------

2

.

.

it

. . . . . . . .

11 28 . . . . . . . . . . 90

oxxxxin-1 oleod ------ . . . . . . . . . . .. . . --------- -

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

1715

1

1112 12,313741 72

4

25,379

1

2

. . . . . . . . .

SOM

. . . . . . .

A'. a

Him" dra)~ ------ 1

1

21

G

7 ':3

.

ZI i .

C.Imnbi.. . . . . . . . . . . . . . . .

Greensboro- . . . . . . . . . . . H'."Ib C a 13

4St1

1.1

31

1 :344 1 O 40"U

i

- -

' ' c"i---- _ _ M

---- -- . . . . 21 --------- 67 4.336 1 J x,k n : : R

6`y

9 7, 2,

. 9 7

672 .

.

.

.

.

. 64

N .x i1I.__ --------------- --- -

..nl,.i Ill

---- --- ;. . . . . . .

111

20 . . . . . . . . 7 5 3:192 1 8

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

Cincinnati- --------- (So . (d) below) . . . . .. . .. . . . . . . . .

. 1 2

1

11,411

3

0" '

I or

Cleveland -------- : : b, 1w) .:~ _ ) : 3 4 311 1 1 . 133 7 1

Detroit ------- _ _ _

. an

is 8 3,869 5 82 2 63

Indianapolis . . -------------- (Indiana) .--------------

Louiw ---- - _ .__ I Kentucky) -------------

i"

1

- . . . . . . . .

a

. . . . . . . . .

41 1,986

I I

4 205

A

03 38

1 6

Parkersburg ... ------ - ---- (West Virginia).--------- 6 -------- 112 8T

3 609

3 fiew..., It"i

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

Abiudeem------------ ----- (South Dakota) ----------

7

----------

1

------ _

So USI _ ._ . 4 2 1,10 3

45

11. U,

1,144

I

. . . . . . . . I. "I IT Chdcag --------------------- (See (b) brAme)_

Des nin I I

F 46

T 1

69 229

F 32 4

es----------------- Owa)--------- -

--------- (No " Dakota) .

'=' -

--------- -

------ -

- --------

'

4 3

I

1

----------

129

43

2,637

196

1

---

It

3 M .Wdi; (Wi_.,m)_ - : : 5 4D 11 321 3. 791 87 7

Oddaha -------------- ~ N idi.,~uki ;) ----------- -

S . Louis- Mis ------------

--------- -

1

I

1

.

. . . . . . . 5. . 11

~

4 39

~

697

3 14

.

3

. . . . . . . . . .

20 1

S . Paul-------------------- Minnesota) -------- -

t

------ 3

_-

12 1 23

.

SPrimlli .ld. . . . . . . . . . . . . (Sim(b) below)--------- ----------

a

T 2

5

3

I~

2 Z22 29

x-lewed RMW, . ~ . . . .. .-------------- ------- -

------------ ( No . M,.ic.)-----------

7

--------

as

------

35

I

11, 1

8

-------1 1

U15S 32, M

14

101

( , ,

.1 (1) be my) ---------- 9 6,23 7 390 14, 11 7

Ch,y,nn.. . . . . . . . . -------- (Wyo., no) ------------- ----------

-------

. .. . . . . . . . . . . 2 .. . . . . . . . . 45 90Da

it ------------------- A

Denver ... . . . . . . . . . . . . . . . . : : . . .. . .. . ... 2 1290 3 7

,

T

3. . 13, 1

. 44

14

Little Rock _--------------- (Arkanus)- . . .. . . . . .

IS 190 . . . . . .

Of, -- 50 1,418 . . . . . . . . . . . . . . . . .

No. can ----------------- - ~L duixl--------- 2 1 v 38 13o

Oklahoma City

khm .

. . . .. . .. . . . . WI ---------- ---------- 119 1 15 6

.

. . . . . . . . .

ichita --------------------- I Konsax) --- -

W ..I- People. . . . . . . . . . . . . . . . . . . . . . . ----- - Ali-

.31 .. .. . ... . 11

Ilu.

. . . . . . . . . . 71

51 .

3,14 3

1'. .'$

. . . . . . . . : .

. . . . . . . . .

1 6

Sea

. . . . . . . . . . . . . . . . . . 17 . . . .. . . . . . . . . . . .

Beirse . . . . . . . . . 'd

he)-

. . 7 :

. . . . .. . .. 62 1. 47 1

. . . .

Helena ----------- --- (14, ,lada) ------- .. . .. __

j . . . . . . . . . -

5,6

2 T

..

Haunt

(H ji

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

:

i

7 36 -. . . .. . .

8

Los Angeles- (So, (a) below) ----- -

Ph m

. .

: :- (Ani'un,

of,

11 3 .

7

2 1, 561

766 '15' '

411

.3

13 0

1 Podland . . ----------- - --- (Oregor

if3

3 6 266 1 60 1 .(332 . . . . . . . . . . 9 2

Redd, ----- --------------- (Nevada). 1

* *

41

So

I

axe City-

~ - ~ - -------- (Utah)-

I'

-------

-- :~ : : : : . :

2

'. I.

..

s San mycisco . . ------------- (See 0:

S l

17 3.113

I

4 159

2'967

311

eatt e_ ------------------- (WaAh 46

5 If

Go 4 20 791

Total, for States not shown abov e

Cahid . . . . . . . . (

a ~'-ia .

31 12 9 4 11S A Q4

. . . .. . . .

4 b~ lt is

I

.

3

:G6 3G,

(c How 451 61 1

Y 11, ----------- 4D

1

1 27.

" .lI25

41 31 7

(d~

Oh

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

onsyl, dis ------ : :

P.

1

25

3

0

4

42 3

33

197 8 183

. . .. . .

. . .

2132 l.6 1

129

. 1

(1) 7e ------ ------ 2

G

3 02

,

g 1 IB 1:

56 -------- -

.7 2

2

116 / Annual Report /Statistical Tables Annual Report/ Statistical Tables / 117
Table 15-Number of occupational tax stamps issued, covering fiscal year 1971, or portion thereof, by class of tax

and by internal revenue regions, districts, and States-Continued

Marihuana

Inivnid revenue region, Itl~ ;I d',JIrd

at 11

Ma

....

.

Dealer s

in

Labor

a

''_

I

ridi~ ,,f, s it i d n

~op,saorted by sirg~ e

h wn at bottom -1 tabl .j

"fur

. "" I

W"s .""d

P

'

Fir c

a

it

`t' ': f e '

hismi_

r.lms, ~ dluc~,ir Pr ris

a 0

ii '

mars for the, s o

and "n da .dr d .V: 1s, In- r or ~ I - e .

,

$3

1--t-l' tial, 1 .1.rs,funin do, , fl.

13 $ 1 .,1 . nulles,

1

$1

fi

or

. P .._

~

$24 $

(23) 1- (26) (27) (28) (29) (30) (31 )

Instead Sir- NvnI---- --- -------- - ---

site 515 52, .51 Is..

2 33 11

Hersh RVei

~ : _* j

a

b -- 563 If3 1'~'5 : Q 7 ------ - -------- -- ----- ----- . .. . . . . Alba _] -

M i 3 214 1, 544 1 1 - ----- -

Augusta ------------- -- (( Ma ne

I _

:~ ~

B t n asa h

. . . .. .. .

2

23 3 1 , 3 11

I S . . . . . . .. . . . . .: . : os o

re ) b

,

'er"Y"

4

0

7

96

1

3

33

7

2 1

.

b

1 (S:

""

3

1 08

107

1, 1139 3 ------ -

S C

. "

u inI .n- . ~emrond)

: 2 8 72 ,061 t 1 ------ ------ - Ms

. hall

So c) ,

6 19 1, 407 18, 753 98 56 -- - --- -------- -------- 2 1 1

Pon nmni,,~

. . . .. . .. . . . (f,ew , .ronim,

of .

. . . .

, I ", it

(Rhode I a

n

p o druxe

_ ._

245

. . I - - I -

1 .677 __ - -6 _- -I

-

: ~ : : . : : : ~ :~ : : : : ----- - r _ . . . .. . . . . . .

Md _

.siuand

. FiNgs. .. .. . . . . . . . . . . . . . .

- - (M l.od a ri - "3 '17 952

I. n"

141

so' log

T13 IM

I . . . . . . . .

------- ----- - as,,

norm . . . . . . . . . . . . . aly

. . . . I k5 8 2

039

' :

M

2 47 1 Me 1 3

p wal . . . . . . . . .

hiladelph a ML :- : : . ___j - _ 14

31

2: 023 1 4.932 52 3 b ------ 31

! .

p

ith . . . . . . . . . go

. (of below) .

i i

'tt'N

12

I I

1, 14 4

..

' '8 1: 1 12 161

1 3

28 -------- -------- -------- -------- 4

R ~ .

ril n a ) i

Wilerington . . . ---------- (Delaware).

3 12 5

' ''

81 6

' ' '

!1

T

4 -------- -------- -------- -------- ------ -

.

Sw

I .-R.. . . . . . . . . . . . . T7 1 : 4 53 s IM 16 . . . . . .

22 36 4

: 023 1,

(Son.hnli N 3h na~ : Cd"U"W CC:

31

it

2 77 5

1 212

2 95

a 5,967 1 4 13 ------ - ---- --

( . m

I

eunithis

(Mississippi ) n

J`k

11

,

190

2 134

4 . . . .

.

:~ --- --

so . . . . . . . . . . . . . . . 3

111 , r i l l ) Jacksonville 32 1,938 12: 146 32 j5 . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . .n3,,W.5 : . . . . .

N, Vill.. . . . . . . (Tim 4 27 1,316 5 735 33 1 6

13

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

c

for. Reglein. . . - ~ ------- 216 n2 1

2

6 .0 8

111

42.911

1 71

'

It

'

------- -

m, it b e IS ( Iee (it) b,

.1 1 23 1 31

, ~

1 1 7 17 2

1

n) 77! ~

Detroit --- (10110111 .

_

7 43 :

891

,

2. D, 4~7 114 -------- ---- ----- 5

India,, (Indian.)

(Kertur

4 1 4

1 1

1 .2.89

3

1

,

3 0996a 6 4 --- ---- ------ - . . . . . . . .

.

~yf .

strulif w)l: (West Virgin

.

1 10 371

1:

IJI 3 . . . . ... . ----- j,

field .. . ------- -

.wse, R.1 . .

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

. .

Ab , ~ (11 1 l

lk"s) -

3

,

1161

S

16

812

fisL i

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

1

--------

2

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

=.~ : . . . . : : : IS. . ( bO 3

Ch below)- -

ii 33 2 ,3

1

.

13.344

4 8

I1 , 4 -------- ------ - ------ & . . . . . . .

Is, 1,nn!1 . ------ ----- -

ota)

L

- ----- - -

--

21

'

757

177

,1 0

775 -------- -----

, ----- - . ----- -

mUgauflkee ---------- (W .. ."'i

---

--------

4

1 4 1 .056 7. 409 8

4

85

1 4 Dinah. . . . . . . . . . (Nii1b,a!"a) 6 221 1 204 "'3 7 1197 41 11 -------- -------- ------ -1

S" f .M :=b?if-:: .- - :,

1 21

.

991

.

s 411 1 1 I -------- 2

. .

Sp,iniffidd. . . . . . . . . .. . .

. (So. (b) be)-) ---------

I

1 3

~

71

,

3, 113

ff~ ii . . . . . . . . . . . .. . . . . . . . . . . . . .

I

N',winui firwri". . . ------ -----_------------

'11 "2"73 1: "3991 765 .

1

. . . . . . . -

----- -

--- --

------- -

--------

------ -

Albuqu,rq,,. .

.. . . (New M

"") bi.iswj-.~ : :

(See (

2 1 1 .772 10,399 23 17 -------- -------- -------- ------- -

C W Tire) --- - ,an

,

30

I'd

413

4 8

7 677

------ _

13 I7 -- ---- ------ -- -- - --------- ---- -- --------- -- ---- - ., ,

D

a,

(So, (0 belonv)_

C l 14 625 4 :426 ----------

9 -- ----- -- ------- ---- --- I o . , -

Little Rmk .------------- (Arkansas) ---------

-- F

'

0

"

2

':

6

9

1

.7

:

-

------ -

------ -

New Orleans . . .. . . . . . . .. (Lousiana) 2 7

13 0.12s1

1

4 4 1

3 7

'4 '

'

------- -

-----

------- -

-- -----

------- -

----- --

------ -

- -----

I

Oklahoma C, ly

. k, fir

Widit ~ 0 1 5 665

:

3 13 1 4 . . . . . . . . .. . : --

-------- -

s

W Fu k;;: :

11 Is 17

6

is

" ses a IAI ------- -

.. . . . . .. . .. . e. - n l

Anchorage -------- (Alaskii.- . . . . . . . . - ____ _ . 1 51 324 ------- -

4

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

lure . .. . .. . . (Idaho) . . . . 2

1

260

231

1 .009

11 2 1 . . .. . .. . fiviours')'

I ii "

4

101 1 :

298

1 7

4 -------- -------- ------- -

~.gwa )

'

Los an. )6i"i-

--------

71 1,110 21 : 71 1 22

7

"

41 -

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

,

1 6

..

650

,4 8

226 6 3

-. . . . .

--------

. ----- -

--------

-

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

5

162 763 1

. . . .

---- ------

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

---- -

... . . .. . .

R f M hy

. . . . . . . . . .

8 271

8

1

3

S It ake City----------- a . .

San Franniscar (See (a)

--- ---- j- 43 2, 106 20 : "88 1 4,

-----

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

. . . . . . . . . . .

Seattle -_------------- (We,hunilmor)- . . . . . . . . . . . . . . . . . .

Z3 1

. 052 6 362 9 ------- ------ -

Total, to, State, net shown above

0) California. .

. . . . . . . . 1 14st, 91(1

747

41 368

11 121

3 6

31

1 1

11

'

----- --

-----

------ -

(b) Illinois--

-------- - I, N, . Yd1k

(C

'

4"4, '11 1

: 84

2IS I I

1

. . . . .

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

(it)

Ohl---- ------------

4, , 3

17 7,82 4

N

28 21

1

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

te) Penrosyl,am. . . . . .. . .

3 3"6

7

3"85

2 . 72 1

18 076

63

36 24 -------- -------- --- ------- -

(1)

To_

-----------

,

Table 15 .-Mumber of occupational tax stamps Issued, covering fiscal year 1971, or portion thereof, by class of tax

and by internal revenue regions, districts, and States-Continued

National Art

M-Intir." Imports' Manu(acDeale r

only in

Coin

operated

Ad .ft -

Me d

enue re ions distrid and States (State s l or Importer' Dealer

Only

. .

. 1" .1Tr"-rasurn ' "" s

d*:SP,*nI,

'it "' devisesn ur"'s" o -ovatedf Wageg", g , d ,

interna re v

presented by single distlilts in sated in malentheses; in lira . classifie d

"

clasVilie d

'

as "Any promises ; btte, and

S o

at, to, the, State, shown at bottom .1 tab of

or

C, ons ,

"" ,

a

I Any

Other

10; A

Deny '

0 t

W,a'w"fl.-

S250 on ,

devil.

1.11 it

be .,,

Class 1 .

Cie . 2. $200 Weapon .- Welion," Class 6,

$500 $500 class A . Class 5, $10

S25 $Z 5

(32) (33) (34) (35) (36) (37) (38) (39) (40)

thrilled stratia.. teend . ------------------------- 26 28 129 1 ST

_

,,we .1 31"! MWI,,

-Ardansti. Westwin ------- -----

- (Sin c

5 7 2 s Is 9 i

Albany ------- --- ------ , fine

Augusta (M

. ) .

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

B ston s its h. ~. f .. ------ - .. . .. .

""

2 2 6 . . . . . . . . . . . . . .. . . . . . . . 74 . . . . . . .. . .. . icj b,'

e.

oyv~

' -

.

: (S

-

1 2 ------ ----

. . . .. . . .. . : . . . . . . . . . . _ (So.

V t

-------- ------ I

:: : : ermon z ) ------ -

Burlington---------------- (

uniclic. ) :_ : : :

(C l

V --- **3 3

---

: : : : : -------- -i . . . . .. . . . . .. . --- -

----

(See

(,)

Man' bel

..

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

5 . . . . . . . . . j- :: : : : : : . . . . . I

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

Portsmouth- , Ih iI is I ------

If

-*

I

4

, r ~~)

(Rhode '

a

Pfoviden e .

I ------------ ----------- -

I

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

I

. . . . . .

efflid-and. as was . was .. . . .. . . .. . . --------- . . . . . . . .

B lt M

2

-

. .. . . .. .

--- -----

13

I

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

. . . . . . . . . . . . . . . . . . . . . . . . a imor e :v I: IT

'eV"d`

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

3

2 0

12

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

fills (lee pbi

121

.. . . -------

3

(lasims) ------------- 2 ----- 2 . . . . . . . . . . . . . . . . . . . . . .

S t

Wilmington ----- --------- (Delaware) ------------- -------- ------- -

5

-----

is . .

. .. . I

. is '

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

thwast at"IM ------------------- - - ----- --- -

Atl (,, ----- , - rsta

--------

3 1

. .

(A'~b . . . . . . . . . 29 . . . . . . . . . .

~ --------- :__ : . . . : a

'i"mm' is

is

! (S uth C

o

. . . . .

.

. . . . . . 7,3519

unrls a -------- ---- - o

C-1 ' 2 Greensboro . . . . . . . ---- (North Ca :. "n -_ -T

1

2 9

852

1

4

- _ : _ : - _ : :

M -----------

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

--

.. . .. . .

' 1

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

2 1

1

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

Jackson . .. . .. . .. . . .

Nashville (Tennessee)- . --------- -

.

---- --

----- -

------- 3 4

2

307

. . . . . . . . .

,

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

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

' 2 .

2,M

'11

ii

1 2

,:~mv C~.nci "`__ - . : b

C

land

3 2 . . . . .

128

1

1

7

1

. . . . . Mr,higiin) Detroit- ------- .

2 ;I, ; : .

---- 17 579 . . . . . . . . . . 38

India.

.

. . . Ordirturi) .

K U 1 )

~

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

5

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

. . . . . . 1 26 6 er uc ,

,,,

,

e ----- _ -------- Louisvil (

P rk rsbul (West , 1191

i

. . . . *

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

. .

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

835 2 is

a if . . . . . . . . . .. . ..

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

Mi a sR 1a,,

_

2 4 ii m y

. . . . . .. . . . d s .

. . . ----

Aberdeen isolls Dakota) ------ -

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

2 212

. . . . . . . . . . .

. -----

I

(See (b) below)-

icago— . ---

j

17

1 7

CDesh

. . . . .

-------

. . . .. . .. . . .

.

. . . . . . . . . . . (North ---- ------ -

2

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

5 . .. . . . . . . ..

lil*,ulee M-111n) . . . . . . . . . . . . . . . : ------- :--

b k )

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

I

1,,

. . . . . . . . . . .

Orrishis (

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

LOU Ne 'U ---- St s

.. . . . . . . .

--------

--------

--- -

---- 6 271 3

It . ui . .

P. . M(M on .. .

U) ----------- -------- ----- -

3 --- .. . . . . . . . . . .. . .. . 20 . . . . . . . . .. . .

Swin,fl,ld ----------- (So, (b) below). .

. ----- -------- 4 -----

9

as

I s

Sesithwe

., . . . .. . .. . .. . .. . .. . . .

. .

Albuq -que

IN

11

. .

. .. .

-- -- 2- ----- ----- ---

---------

, . i o

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

__ S

Ault ( I::(f, below). . . . . . . . . . 9 V

6

Cheyers.. 123

. . .. .

. . .. . . . . .

(Wyonsung) ._ ----- --- -

S b l )

-- --- I - ------ ----6

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

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

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

2

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

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

Dall- ---------- ------- ( ee M e o w

: (Colorado)

3

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

132 . . . . . . . . .

. . .. . .

Deny,, -------- . . .. --- . . . . . .

A ~ ( Mur,1..2) --- - 348 N w Oh,. ------- ( ------- 5 . . . . . . . . . . . . . 1 2.

111 1

Oklahoma City. .. . . . . .. . . . Oklahoma) ------------- -------- -------- -------- ------------ --

- 1

1 0,

249

4

Wi,hit------------------- (Kaosas)_ ~ ------------ -

.-sain ..a - ---------------------

----- - -

--------

------- -

I

---- -- -

"

- --- ----- -

1

-- -

17 3,2as 4 I,r

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

Anchorage Ika) ------_------ -

-

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

1

2

. . . . . . I

------ -

BoiseNo)

(Id .

-- -

.. . . . . . . . . .

I --------- di-

. . . . . . . . . .

. . . . . . , 3

Helens..----------- ----- (Mmit.o.)------------- - I

""'u" ':w

--

-

5

-----

H

. . . . . . . . . . 11.3I

: : :

--------

. . .

(S e

A i 4

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

- -

---- -

------

.

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

lona) ------------ -

Ploem ( ~

t

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

. .. . . . . . . . . . . . . . . . . . . 1 6.7 . . . . . . . . . . . . . . mU . . .

P i

----- ---

"

Sell 2

.

3

1

1

4171

13

San Francisco --- --------- (See (a) below)

Seattle.. ----------------- (Wash, noon)-

. . . . . .

. . . . . . . . . . .

. . . . . . . .

. . 2 375 . . . . : : : : : :: : 1 1.04

Int .1, to, States out shown above

(a California 3

11

lifinn i

e) New York 2 7 F 2 . .. . . .

12

1

39 . .. . . .

hio 3 2

1 . . . . . . . . .

.

3 1

. . . . . . . . . .

(f) 7exas . --- --------- .. . .. . . . . . . . 2 8

- lorded., 5 W.-I .1 less than 500 barrels .1 $55 .

118 / Annual Report / Statistical Tables Annual Report/ Statistical Tables If 119
Table 16-Number of returns examined by class of tax and by Internal Revenue regions, districts, and other area s

internal revenue regions. districts and other areas

~

Total

Ind dust

hrl d

fiduclary

I .I. ut 11.

unpi-y o -

At

1

niorl" .tio. .

Tell .1 611 I2 Ey 1 121 11: 1 11 1

-Aol

. . .. . ..

M as 25 age

'3 S : a: as, ,

a

alu s

Flud .... . .. .. . .. . .. . .. ... . .. .. . . .. ... 2111 .1 1 ", "a go.

's :

so, a" ..I

:

'N "? I.S . a" .

.9 A 384 a .a2 a

Us

'2'

$

al.

1

s. suit Le .21 . a $a

1,Its

1,11 2

a as ..20 1 . .

..

.11

. .8

a:

. 9g,

1.2S514

1

U 126 141 1 . eas

1 .o.

W

brul-1, net --------------

2

is'614 Ta :

.

2.7

.

S .

,

a

'

N11th Advert . Rvg.- ~

16 187 ICIGO 941

"

6 605 it Albany -------------------------------------- -

A truster--_-------------- -----

,

6

48: 41"1 4:32333 1 1127 ..

122 23

31

232

I 14

324

31'

---------- _

311

- ----------- _ Woolly - 11 11, 11 411

,

3.02 1, U54

1,B ,S1

: 2 745

---- -

B Up_

37 o :93 32 :4~6

3,336 595 138 141 396 28

Burlington --- 662

3

3,140 308 45 4

314 647 273

. . . . . . . .. .

Hall old 1 1

------

Man Van ----------------- . . .

3

26:

75~5360'

22,34 3

63,326

2:'1 1

6 23

57 4

1,732 54

3

1,433 95 1, ON

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

Portsmouth . . -------- . . . . .. . . . . . . 7.47B . 1- 745 95 20 47

... . . . . . .. . . . . Prolichre -_ ---------------------------

I

., ~fB

8 : ~59 975 82 10 498 1 3

Real38 11I 3 1 57

'

Bar 905 182 1 .296 790 1,04

NeENO" ~ ------------ -----

: 'N

60

'~

':

5

5D 4:772 1 .443 304 2,587 797 31

P . . . . . . . . . . . ---- -

hillfid I. ___ ----------- ------ -

Ph

'1 N'

145

14

4,633 802

0

13 G

309

2

: 616

So

17

39 3'

163

?

'

itbbuTgh- . - .

RF, end

3 : O,

17 11

2.:B33

3 1 121

3, 179

1 171

9

471, 2 1 1 1.174 1 . 11 3

. . . . .

Wilmington. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .

~: .. . 8: 220 6

84

88 2 4

509

19

27

So' thwes, R"fioni

26 740 2 399 335 73 1,973 1 5

' 6"

Atlanta ,

22.716 "l!): 694 7

1:

540 24 171

ous

14 4 28

C unabla.. . .-I --------------------------- 18,923 16 14 3 1

'

3

1

12

:

3

2.

1

4'3

Goenstr m ... . . . . . . . . . . . . . . . . . . . . . . . . .

49

'16':'295

: .

2 8

13'.

4

1

2,2

949

a'

4

199

12 4

18

2 977

41

4

7

5

I

3 2

------

5,40'4'

44,253

22,199

4 .58 2

1,936 1' 381145

2130

35

'

3 34!1

145

L

2

56,1 1

7

14 4

R. .-:

C . c alL 36 141 24' 412 466 98

"

"1

77 7

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

. . . . . . . ln n n . ----------- -

C ..land -------------_-- -------------

: S o

51 2:477

:

4 133 91 3 26 1 7M 9.

8

7

----- -

Detroit. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 71,235 131

11

146 734 303 3,549

1 631

335972 3823

e . . . . . . . . . . .

. . . . . . . . . . . .... . Indrun ~ Ir I

38

36 9

5

:

1

N

..

2 :

544

126

9

,

119 10,

I C lg .

Looln, : : . . . . ___ . . . . . . . . .. . . . . . . . .. .. :4 9 3

23

19,751 1,811 328 1

3 201 187

6

Parkersburg .. . . . . . . . . . . . . . . . . . . . . .. . . ... . .. . . . 13,696 12,187 926 151 8Mad

.

2 '

117 145 61 467 127 3

Ch Ali,i rI" n

: .3

' . ..9

1,515 364 942

1

ga 41 S

Do Moin - : ----------------------_

16'311 10 '3 6'I

867 114 :899 7 21

-- -

Fall.. ... . . .. . . .. .. . . .. . . . . .. . ... .. . . - 4.786 3:71. S 119

2613

151

11

67

485 ~

Mil-k ... .. . . . .. . . . . . . . . .. . .. . .. . . .

31,181

2 7

23,898

3

31:

Z202 '435 so

1' 0 .78 614 22

St.all . . . . . . . .. .. .. .. . . . . ... . . . . . .

Lo

8:

13 US4

%2

29 7

.050 1, on

212 7,029 1,506

1 E

.

u

St

'

24 11, 11 31 3 2,491 643 121 1,176 359 5.

.

Sp,lngfi *Id

18 3,3 : 14 :40 .

979 687 66 1,681 548 22

Ssuselmev"

Alb. . .' 2 .. . . . . . . . . . . . . . . . .

"U" Us

6

..

17

' 1

562 too 27 374 350

!

Aust — ----- . . . . . . . . . . . . . .

------

in

33: "1

1

24 ~ ~3 2,381 502 343 2,1~651

I . 127

86

Ch

.....

3:471

3 5

D

7 3 V 101 ' : ' 2 011. 705

38

351 4 .322 1,178 49~

D.

4,382 10,736

,

977 314 97 1,614 617 23

Little Book

:' "

6 3

7'

7

00 169

43 505

251

'1 .. .

New Orion . . . .. . . . . .. . -------- ---- 4:31.

to: 7 .

7

I ,,

3

' I''

16

7

Ill 2

5i

.

Oklahoma Wl' Cut,. . . . . . . . . . . . . . . . . . . . .

.782 11 2 : 0' 379

: I B 1

1,230

4 52

4D6

1 14

91

I .

2,0198 4

644

1,011 21

A heo n"' 2 336 060 21Z 14 4

22

Z3

rec ui

Bell

:7

38

6 796

54

1

5 4

7'

456

512

134

1 11

6

31

41 8

4 4

1

20

Ill

H q Hot . . . . . . . . . . . . . . . . . . . ------- -

or

on "I'

,

7 111

: 6

1 '2

5.8 85 1.

511' 6

Los Angeles .. . . . . . - . . . . . . . .

M 19, :

80,171 0,170 3,119 732 5 , 360

I

849 66I~

hoeni . . .

. . . . . . . . . . .

P

16,237 13 16

1

285 62

7

39.721 301

P. 07

,Us d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

1 1 1 15

:7 1: 041 362 9

13 267

1

47

. . . . . . . . . . . . . . Ran. . . . . . . . . . . .

7: 3 5 6,731 312 56

4'

588 444

S:,., La,, S

Formlsooty

IZ 03 2

72 56

2

9.111

64 69 1 1 72 ':6'3 ' 2,0 3 30 5, 146 1,116 51i

Seattle . . . . . . . . . . . . . . . . ------------ ZB,84 3 22:969 1,914 419 1 78 1 2, SS6 497 01

Table 17-Additional tax and penalties recommended after audit examination by class of tax, and by Internal

Revenue regions, districts, and other areas

[In fincluphod, .1 dollar, ]

Internal ezions.

revenue r

I

districts, and Ohe areas Total I " I

fiduciary

C Utals] .111 an ,

Twoll -------- __ ----------- _ ---------- 3, = U7 ". 011 1,935,02 .10.4. 66,26S 462

U ,

20 7.

lewth-Allaver,11 ---- ... .. . . . . . .

Mid-Atlea, r --------- _ . . . . . . . . . . . ... ... .. . .. . . .

as: "I

430, see

1" :M

1 .'s.2

As

= a: '"s le, i 4" us Swunle - - ------------ ------- . . . . . . . ..

'"'

'aa

"a 'ga

c"Ined ------------------------- -------::::::: : : '" 2 ,

Ifild-t . . . . M 7.

1

'.So

a'''

.21

mr ,

:

3.721

:

4. 1" .:

4,111.

3 1

ar

311: ga 13 M .2. a 11 .1 4' . 7

We w ---_-_---------------- 4 1 Our

: 4

1,41.

"

. M " 02 ..It. 1, .1 1,115

Int-berell OW thwur -------- ':UO U, IQ '9.6.2 Z:

a

Herth-Aftlooll.in -

Albany ------------------ ------------------ 44 .007 1

Augusta . . . . . --- -------------- -

Boston------------------------ -

Brooklyn ----------------------

7.:485'

92 "

'2

1199

97 5

rig " ' ,

17

':

..

37

. ,

13

..70

1

1 1 117

375

2,111

44~

18,

41 3

Loss

3

. . . .

. . . .

B train -------------------------

: 7

46 40

14 :'7 2':

Still

4:

018

255

99. 192 . . . . . . . . . . .

B d pirt------------------------------------

3

. 768 544

1

1 .8ze 200 18 121 57 .. . .. . . . . . . Ha,t ;o,d ------- - Manhattan . . . . . .

11'7 3'

5-47 :

70,1 1 : 1

936

'" 71

05:2510

1:31 ~1

j 91

9'~ 6 1713 373

11,8811

1,41 8

1 .760

. . . . . . .

Portsmouth . -------------------- -

Pollution a-------------------

:35

132 2132

1:21

a 6019

3 90 1

6:501

2.773

831

ICS

14 1259

2

13"S

Ill arowl. R.I- :

Baltic, h I ----------- ------------------------- -

-k - -------_------------------- ':93.

07

25:71IS ! 12: '3101

'880

7

1 12'

1 .096

11 . 317

",I381 691

No

1 1

Philadrilplu-----------------------_ 13,835 30,638 14

..

s: B

2 7 7

~ D

508 234

P! ---------------------- - 92,825 20,313 3 :413 6,165 420 386 1

I

: 1 1 7 1 R :::

ularnmed . . . ... . . . Wilmington- ---... 4323 :11

'36

131:,071 27'1:2713

24

1:,S1 l

52

429

462

550

U

5, 9

14

.. . .. . . . . . .

. .. . . . . . .

swrethe"t Itoglem,

A lama --------- _ ._ . . . . . . . . . . .. . .. . . ... .. 36 .679 14.320 16,303 4.167 ago 524 413 2

Sir unglarn ------------------------- 1 21 ; 11 471 1 41, 1.379 322 467

11

3

C.I. .bi. . . . . . .. . ------------- -

G-mbe . . . . . . . . . . . . .

:

38 9

1

51 108

? 16: 3~

13 044

to 6 : 3 7

35

4'9

1,709

' '

'3

3

324 506

3 1

2

36 lack,"

:

14 679 6:659

:

,.Ck 4 290 2: 793 521 166 24 7

.

. ;,,W_ ... .. ...

Pashvill'_ _ ------------------------------ _

119,11%

37,559

40:411

14

.. 17,' 1, '80" 1,3:310

522

1, 1.

310

5 .11210

3

92 1

365 4

Retaken:

Cocippati -------- --------- 43 ,4 31 11 721 2 7 317 3 113 309 295 31 5

Cl., !and. . . . . ... . . . . . . . . . . . . . .

1 .2, 835 22: 2~$ 3:

6 -

, : 7 48

1- Is

42 5

1)at,:,t, - ~ --------- -

IndianaFolus . ---------

1 1 1

37: '50

26 8116

1 135

1': "

1

12 06

2

41,01 1'.7313

8 909

16,215

6.658

2 904

1, 335

297 9

1 ,

1, 131B

lot

1 .211 1

2 036So

. . . . . . . .31

.

Louislul a- - ~ ---------- . . . . . . . . . . . . . -------- -

Parkersburg - --------- ------- ---------------

.

11,603 4:945

.

3,753

,

2,7DG 74 E

.

32

. . . . . . . . .

Mid... . .I-.

Aberdeen . . . . . . . . . . 1 3,513 1.609 4,12

'

336 104 8 15 . . . . . . .. .

Chiug,-- : ----------- 291,153 39 98

'

2 .5: 2 1 31 Ill 1 1 1,411 1. 1"

Des Moines. --- . . . . . .

F, go~ ------

31,808

3,11%

5:042

1,882

2

17 .

799

1 6

5 : 11

338

75

3 :

17

3!

3l ~

20

1

36

62 . . . . . . . . . . Milwaukee ------ -

Omaha . . ~ ------ 129.:112IS'9 5:7"92S

31 . 2 1 6

15 .184

3 .02 7

2,139

5, 806

517

89 7

03 5

1

1

25625

St Louir_ ------------------------- ---- --- -

St. Paul --_-_-------

IDO.740

51 184

24,729

1 1

63,29 5

1 351

9 .603

3 .l71

14

1:839

: 52

304

98

59G

4

21 Springfield --------------5:

5 067

5:

547 44 :397 3,764 )Bit 373 805 . . . . . . . . . . .

Albuquerque- . ------------ _ -------------- 1 1

I

1 11 1 491 :1

1

42 too . . . . . . . . . . AustinCh81:

S..

4 110

25:

890

71 1

: . 1 .

31

2 771

IS, 9

4a 8

1. .34

72

2.999

11 4

i l

. . . . . . . . . .

D Har ._ ---------------------

D'rV r------------------------- : . . . . . . . . . . . . .

Little Ruck _------------ ----------

1:

11

14.74-8

I" 13'

3" 2,.

4,981

4 7 1 7

So : ~

4 .76&83

4 11

13,13 0

3,90 3

211

'

1,S44

644

5 1

4.4 0

358

2

19

2.427

1989

5

. . . . . . . . . . .i.t

NewOrleans- . . . . . . . .

Oklahoma City ---- . . . . . . .. . . .

.

36, 120

46.607

1 1 : 298

9 .752

21 :

28 . "2

2:45 8

4

254

976

54

2,064

51 6

428

1

Wichita . . . . . .. .. . . .. . . . . . . . . . . .. . . 24,559 5,221

5

6,05 776 1,850 419

1 .2

39 . . . . . . . . . . .

.vellen. yeanglem :

Anchorage ------- ----------- 2

..

14 1

1

797 1

1 23 7

21" H . . . . .. . . .

:

12

8, '1' 14

2 :

2 .238025

1':13 3

'86

41

.511

213

4'

71

a

,

N

Los An

898

%

: -

721 :796 708 927:699 129

85 8

23.263

42

1120

.1

1,441

J

597 4 G

ph

.wo- _ --------------------------------- -

Portland -

28, "

22.3DA'

110 : 2191 4. 7 121

9:836

10,634

1 414

347

483

3

583

33

76

to

.. . . . .

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

Pen . . . . . . . . . . . . .. . . . --- 9.604 4 7 1 5 3

0"

:

1 62 7

8 1

Salt Lake 11 . .. . . . . . . . .

'

ity . __ ------------- --------- ,-, 12 21

3 : ~ . :

:: 1 7 072 955 7D 117 31 1

San Franc

Searle- ' m'--* . . . . . . . . . . . . . . . . . --------- . . . . . . . . . :~--- -

1,1 :

52,086%9

44,5 2

9,044

44, DD4

35,550

18.015

3,090

721

3: '32

1,114

90 1

396

172

201 ;

Less than $5DO.

4

3

120 / Annual Report / Statistical Tables Annual Report/ Statistical Tables / 121
Table IS .-Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases)

A . Progress of work

Status

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

Received --_--------------- ------ - - --- - - --------- --- - -------

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

By agreement . . . . . . . . . . . i . .~

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

U nars,exi,;a, ---- --- ---

By

imamed

taxpayer

: (O,eras,e,,

default on

.

statutory policii-a-,-

.b 1 . -----

-* ----------- * ----------------- ypetition to the lax Court-transfintre odocketedstatu s

Pending June 30 . ------ - -------------------- ------------ ----------- --- * ------ I ------------------

B. Results obtained in disposition s

Method

Disposed of, total-------------- ---------- -- ---------------------------- --- ---------- -- ---------

------

By .gimerim,i . . . . .

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

.

. - Wiii-giWda'Win ciiinwonlise mie~timl)------------ beef J: claims lisc ;C errOoPin -

By taxpayer default on statutory mance-a-tt..

------------------------------------------ By petition to the Tax Coulf-trairsfere olioi~~;edisi.tux----- ------------------ -- -

Number of

coves

3~111

2

25,066

19,743

1,474

1,035

2,81 4

22,32 8

Number of

(1)

25,06 6

19,743

11 474

: 035

2 .814

F .Y . 197 1

Amount stated to revenue agent's

report (thousand dollars)

Deficiency

.ad penalty

(2)

Overapse,sn t

(3)

'1: s"16': V37 59,967

1, 314, 981 39,019

1, 111D: 7,12D 3

9'14

1, J 2,: 2, 51 84 .11

2,616 .235 135,519

Appellate determination (thousand

dollars)

Deficiency

.ad penalty

(2)

532,932

OveTa-

..a t

(3)

50,94 8

312,378

9 879

26: 341

184, 3,4

4

131

Table 19.-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax Court

(docketed cases) F .Y . 1971 A . Progress of work

statu

s

P July L -------------------- --------- . . . .

R=. total. --------------_--- ------

Petition' District Di1eclxlxx`~'tx%t-*ly notices -it ----------------------- ------------ I ad i

n

Appellate Division', statutory notices ---------------- ---- -

. . . . .

Disposed of, total --------- -- -------------------------------------------- --------------

By stipulated agreement -------- I ------------------------------------

By dismissal by the Tax Court or aspayer default------------- ---------- ----- --------- -------- --

Tried before the Tax Court on I . ni----- --------------------

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

N= of

(1)

10g :457 2

99

52 .68

.6145

7,59 3

6 061

'567

965

11 .163

Amount stated in statutory notice (thousand dollars )

D .fican't, in tax

and Penalty

(2)

Oy.rassesiaar t

(3 )

1, 332 7'

509:1429

327,D50

192~379

421.01

332 794

25:18Z

67 .03 4

1,467,403

:

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

dared by Appellate in 90~diiy status.

I Difference (ron, table 18, transferred to dockiltud status is ured by Indinfing district director's statutory notices cansai

-,bad .

Table 19 .-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax

Court (docketed cases)-Continued

B . Results obtained in dispositions

Method

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

By stipulated spiennneal . . .

If dixmillA by the tax Court or taxpayer default -- ----- . . . . . . . . . . . . .

Tried War, the Is, Court on the mefits 1 ------ -- - ----- . . . . .. . . .

1 Represents amounts petitioned .

ramparts!

.

.a

7. 593

6,061

5'617

Appellate dalmuninalon

(thousand dollars)

Deliclon'le in tax

and penalt y

(2)

fiverassess.

cartarrit

(3)

19Z. 837 4

104, i4 2

A.

Table 20 .-Office of Chief Counsel-Processing of income, estate, and gift tax cases in the Tax Cour t

Status 14 umber of case

s

(1)

: : : :

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

Amount in dispute (thousand dollars)

Tax

(2 )

P

ending July I - ---------- ------------------------- Filed or 'emered . .. . . . . . . . . . . . . . . . . . . . . . -------------------------------

Disposed or --- - ----

Pending June 30 --------- ------

11,453

8 .299

7,560

12,192

Deficienc y

1 . 263 W3

452 :689

372,055

1,344,237

P. . . try

(3 )

106 . 7"

3JJ : 5111'0

123~ 477

Oytirpritirmul d

(4 )

- 93, 746

56 647

13:982

136,412

Revised .

Table 21 .-Office of Chief Counsel-Receipt and disposal of Tax Court cases in courts of appeals and in Supreme

Court

1. courts of appeals In Supreme Cour t

Abma D u" I il=II A

=

ount in dispute ount apx.ved

Status riumb

a'

( ap~ ~ ri d I

l

-

( mberhousanit dollars)

,

housand ollars)

of cases it cases I

.-

- - - - -

Del c

~r d~

1 1 1icx 1n- er. 1,cion . - 61m. 0 r

.

'Y a

, , ..,

ayment nd

yeampt and . ,va

ant

. 1

ppi' Iy

enalty enalty enalty

(1) 2) (3) 4)

5)

6) 7) ) ) 0)

Pending July 1, total . . . . . 382 37.1 1 f

App and by Commissioner . . . . .

:

_

App 78 4,424 1 . . . . . . . . -- . . . . . . . . . . . . . pp 31ad by taxpayer

A oared by both . . .

717 1 1 J:1 1 1

9

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

. . . . . .

.

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

Appealed, total- .- 338 B, 431 35 . . . . . . . . .. . . . .. . . 3 1

By Commissions . .. 4 2 1 M3 61

By 0%ater----- -- - . . . . . . .

. .

By but

" ,

50

1 :41f

2,442 7 . . . .

. _ .

Disposed .1, Wal 212 12,611 K,630 ~ 67 . . . . . . . 7 . . . . . . . .

[",p ~%' taxpayer- .

OiF

4 1

,304

1,111

1

3

304 . . . . . . .

36

3

. . . ..

7 . . . . . . . 7 . . . . . .

Muddied

J . 2 3

.61

Sol I.- . . . . . . .

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

2

54 49

. .

7 2

Pending June 30, total, 7 . . .. .

: L : : :

Appeared by Culanissors,

83

. . . . .

_

. . .. . . .

_ -

. . . . . . . .

-

. A1P11j:d by, tllla,a, . . . . . . . . App,a it b .

both ------- ------- --- - 65

S3

3,296

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

Revised .

122 / Annual Report /

Statistical Tables Annual Report Statistical Tables If 123
Table 22-Recelpt and disposal of refund suits filed by

taxpayers in Federal court s

status

Total

I Refund Suits (.the,

ran alcohol, totbaand flearms laxes) i

Pending July I C exers. _: .. . .

. . . . . . . . . . . . . number .-

Amount in dispute thousand doll

Received dil Case . .

no. be,

Amlu'Wt uc~ ispub- clati jholn out

Disposed it ' ring year Ga :

. _ _ . . .. . . . . . . . . . . . . . ..number

Amount I dispute ---- thousand dollars.

B,,u need during year :

A .

oul . . . . .

.thousand dollars

Percent at amount disposed o f

Pen ding to,, 31

C

"a_ _~ . . . . . . . .

. . . . . .

. .. re nor :

Amount in dispule .. .

.thecurid dollar an

(1 )

01: .77'

its, D61 Jl~ "

106,223 1.091

51 90 0

54 .50

1131: all

Court of Dis t I , I cmuVt

t i. is

(2) 1 (3 )

188. 304279

180

64 .45 1

153

42,407

33,925

80.00

210.353 "I

;o7l: 5114

68

997

69.610

938

63,816

235975

3 .56

3 01 3

313: 36Z

is "d

wil number of Cams it W heof . during th ,,, ,, agree with he number e of case, in

ch decisions oel und-d Ini

by Y-116ulloon, stimulation. dgisssl!~dxnd .timo I..Iq

'cod

for latli.l. .Co. at I -

etc

no I

do,,,simar as 26 of which 16 vve. 1.~ the

Government! V It' the G....rmwnt in .,i,,,,drD

"U' t p'" 'it M1 .bkTP1i)W .Db` Government. In the district cmin, 424 do viem on .,ad ,

lot the Government, 14

7

aganst I

he Government, and 70 pl lot and Partly

against the Government . For decisions bY the

C .o

is If appea s and Swi,sce

Cou2iis'n

7 able 21 .

oil.

Table 23-Office of Chief Counsel-Decisions of courts

of appeals and Supreme Court In civil tax cases

Part

Court

Total

lit, 11"

Gover l

ment

Allitall

the Gov -

cement

I., an

party

against

the G.~

ernm n

i

Total---------_--------

(1

359 211

(3)

95

(4)

7 3

By ..", .1 appeals, tmal~ 355 237 9~ ~23

N3

By Supreme Court. total

Originally tried in , -

.I C.u" -------_----

Cou Dist ;1C, Courts I -------- -

at claim . . . . . . . . .

a 3

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

I cT 1, 1, mrt., , I'Ag7I I.v:,",dM1red Il I I I I eirm a wit 156 it 'c",lymunbee's of which at or on, we " opinions I in par ne, [or the Government

and 25 opinions were all I Case I , .1 which n

n1ld,"

G

. . .. ...

allin ,, stop lems

We the

, the

11 at A

Ppe"

1, u I

red 142 .mn c C an

44 ,1 1 .1", Go, mmel 10 Opinions were partially for the wamm It .

opinion,

we Go ` ecI112"4111ni-I in 3 d.Ck It numbers.

w

Th: Supreme '

:no 'in I ~

fifth re

T N Court tendered I Opinion -so mull was In' the

Government .

Table 24-Office of Chief Counsel-Receipt and disposal of collection, injunction, summons, disclosure

and erroneous refund cases

Statu s

P ending July I ---------------------

Received---------

Disposed of ----------- -----------_--------

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

Number of so .

'11,

,

164

, :976

Note.-This table mcludes uses handled at national and regional lerviels which f 'if

or" til .. .l1eirallimmictlo,.u'ribia'aing . suit in led., .) and Scale rou a. If doescut did . Case, I I, cr Weil licit Cro, and firearms tase, no, air

h!

and debtor Proceedings (cable 25). mor to appeal and other cases wh c are il

d`~,ec,c .'c'u',Mxc21d1 cases orl call I . TIM. 21 with refund its,

effective July 1, 1970, are handled 3%

.PC

as general litigation case,; cave,

pending June 30, 1970 . 1, .

included here .

Table 25-Office of Chief Counsel-Receipt and disposal.of insolvency and debtor proceeding s

` p~ "

"

"

M"'Re

Racclomics .

u

i

t

.

Total tion , 0

I

."

"'T

inscullinert

Status

p

ceed ings

P'_

Car l

.n

c l

(2)

Pending July 1 1,121

3 842 2 224

M

51I .,1 451I

1

Received- . ------- -

of . _ -------------

.

3,197 4

,

1

I

: O'g

1

4

June 30 ----------- 2,974 ,875 629 47 0

t Proceedings instituted .,do, Un' _1111-1,I)II11d"cle the Back-

,

.ptty Act : Sec. 77 lit rronguncra on

. his

(se I I c'exi -

I ,n,,,enlslu ,c a Xill (.a .. .

.'rionsisix I .,,,1indIbftcJmcI) .XIl(rex onfor, yiir l

unuicts), it S),which involve tax claims and of IT ri 5

and interestsI 'i of Ifie t

quiked States ifical and Federal or State receivership proup ,u;,: gin ' so Ucll it Sti t

-dfln",".1,19 in'

.

I C1191cl the - t - Is

in; Pnicesdigittv.1ritil concimale dissolutions .

ri~olvemt banks, assignments

the

been I a

credits 1 . .1 ad hemistration of rental of decedimis, which involve

tax claims of the United States.

Note .-Indudes, cases handled at national and regional levels .

Table 26-Office of Chief Counsel-Receipt and disposal of miscellaneous court cases, lien cases not In

court, noncourt general litigation cases, and appeal

cases

floccourt

I

lo's

lammus 1.1 gem .n.1 Appeal

Status court

%

not in litigation

case s

cases I Court I cases 3

0 ) (2) (3) (4) (5)

Per

qing july l - ~ 1 ;

1 9

"

84

929

12 2

Rece l vld .

: ,

441

1

23

11

2 :00

9 4

1

4: 006

3 11

1

G

3

1 :

924

2 .

20 1 , 191 18 5

tu I Includes so "I Zilcl-l 1, mortgages, 0, it, to ratin Ut11 other secured creditor,, end

.1W which the United Six tes is made I party

Primarily applications for discharge 0, property from tax liens.

Primarily memorandums a, general litigation matters I roma regional counsel

,alst,ict directors which are not related to court proceedings of lien cases.

,.Mar include, I., in Federal and State appellate much relating to insolvency an d

proceedings I e.

I,

.s in

Court

I

and

collietlia ., so ..on,, and mlonal case' .

. . . . .. handled It national and regional I. . . Is .

Table 28-Costs incurred by the Internal Revenue Service

[In thousands at dollars]

Table 27-Office of Chief Counsel-Caseload report

Activity

'C', nI.

(1) 12) I

a

(3)

Pending

Jum l

(4 )

Total 24,877 31,820 28.988 27,709

Administration. . . . . . . . . . 63 225 164 124

Alcohol, Tob.ccormil Fircure, 1,090 6 .580 6,398 1,272

Nation,10ftee -

Field ------- --- -

37 0

.15

421

General Litigation 1 . . 15.520 13,064 11,810 6,974

National Offic

Field--

. . . . . . ..

360

5 .218

45 9

12,600

34 5

11.457

474

6,361

Ent-curnmet. . . . . . 2,206 1 .313 1,052 2.467

National Offic - -- - Fluid ----- ---

73

2,133 6 T1 .246 1,0114

-99

2.368

Imitinplatativ .Dwido. 258 679 577 366

Legislation and Regulation,-,- 424 145 124 445

Refund Litigation Dilillcm . .. . . . 3,381 1,177 1,091 3,467

Tax Court Litigation . . . . .. . . . . 11 .835 8 .637 7 . 772 12,705

National Choice

Trial B ...h Nictl Office - :

Field- . . . . . . . . . . . . . . .

3"204 1

111249 1

338 1

18,194

T1 ,

a 7 .

Revised.

Includes erroneous refund suits worked by Refund Litigation,

Statutory Notices not included .

Includes 10 uses transferred from field to Trial Branch. Excluding transfers,

there were 8 111

1

Branch Fecifluts and 7,548 field ditilrelat

, Incl s

odes 3

.

., transferred from Trial Branch I

. I.

[it, Excluding transfers,

the,. were 12 Trial Branch disposalsand 8,291 field

receipts

I

Internal revenue office . district, or region '

I

.1 1

I

,.reflectance Travel I litudec'm

1 Don' t

( 1,

(2) (3) (4) (5)

. National Office and regional totals (including district threctil offices and service

,enter,)

T is Revocum Service I ----------------------

'k

948 .353 28,571 15,891 $8,24 0

ational Officeorth-Atial . . . . . . . . . . . . ------------- ----

IN

149,66001 1

164 ,

39 '76.

1~ "7 :072

7912 t o

4 3

R, I

Aid-Atimitic . . ~ -------------------------------------- . . . . . . . . . . . . . . . .. . . .. . . .

~d hound ---------- __ --------------------- ------------

- ----

118,402

14

8 1

1 09 :961

17 17~

2,81 5

" 1 'I

1,197

I ., 0 1

4~429

entral- -- ---------- - ' 1"

diderval . . . . . . . . . . . . . . . . . . . . .

3 1

6

10 :

92

4 7

98 Sf : f

104,84~

3. 72

4,032

1 1 ~

974

,: I.

1,19

vouthwes ---------------------- 91 17 :0

1 9

3

12'

9

9

1 141

Vester, -------------------------- - t o

"R

J4 : 947 4:

1 .

got

g:~0

-

eglonal counsel 4

4

e 12 220 . . . . . . . . . . .

Dificas M Ins...lien ----------------------------- -- . . . . . . . . . -------- -

nornational Operations. .. . . . . . . . . . . .

I 1

V4

27

1 .

160

281

. .

4

23 2

259

fictional Computer Center ------ - --------- - ----------- 040 27 9 1.750

RS Data Came----- - ------ - ------- 15.473 473 12,5110 76 110 2,72 7

. Regional Commissioner's offices (excluding district structure' offices and seivu .

centers)

4orth-Atlanfic . ------ ------ 17

1

4 1 1

1

465 108 676

did-Atl .ntiC- . . . . . . .

.

ki Distant------------ ---- _ ----------- ---

. . .

5 2

19 481

:

ifi,fil 3 121 524

951

111043

6

1 7

. 558

;entral . . ------------------------ . . .

4

5: 58 14 23

'

472 42

Aid-al. . .. . .. . . --_------ - . . . . . . 7 1 1

Wil.. . . . . . . .. . - ~_:

I 4d 142 M 1 1 2it'S off :156 6 2

..

98

"1

99 5

11 7

Nelstem . . . . .. . . . . .. . . .. . . . . . . . . . ---------------- ------------ .. . . . . 13,708 12,284 614 IOJ

70 1

Regional =at, undistribute d

icirth-At all -------------------- . . . . . . . . . . . . . . . . . . .. . . .

- -

1 914 726 805 43 13 1

Aidl i,. . -------------- . .. _ .- : _ 1:527 7 31

731 ._ . . _ . . . . 65

outheast ------------------------------------------------------ ----- : ------ 1 .826

.0

877 . . . . . . . . . . . 148

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

vi'd

w

at------------------------------

62

1:9103

74 1

958 M919" 45

194

92

~molhvnnt ----------------------------- -

ffesterh --------- - ------- - ---- . . . :

84 6

"I

1 5 5

1~-=

649

-

33

k

i

4

:

:

3

,

9

50

Annual Report / Statistical Tables / 125

124 / Annual Report / Statistical Tables
Table 28 .-Costs incurred by the Internal Revenue Serviciil-Continued .

11, thousands of dollars)

1 .f~al onamesibim personnen o l n

I, rfor"papare, 5) In'tor ,

D District direclors'eff and .... relenters :

N~O Atlimlw: 4 400 4. i5D 130

A baby- . . . . . . . . . --- - --- " 1 I __~~ : ~

,

2, 250

,1 80

13 CD . Augusta_ . . ..

. ~

"' '

1 5

112

3 3

A 1 1

412

Boston----- . . . . . . . . . . .

packlyn. . . . . . . . .. . . b .

`

I I , ~

503

1

'

911

1 1

54

S

4

,

311

Ruff 10 . . . . .. . .. .. 3 4 5 3

,0

Do

. . . . . . . . . . . . . 8 .33 9

31 313

7, HS

31 2 11

150

319

2 4

6 5

227

714

Maphatil . . . . . . . . . l : 7.,

:a 1,

17

3 4a

Portsmouth . ----- 2,111 1~114 9 83

. . . Providence P . . . . .

U""

1 6,

2

1,

12 . . . . . . . . . .

. 1

5

forime . , 267

North plant .

N 0 CentuWad Training ---- - h :Atlantic Region BG

27.549

. . .

25,452 269

I'll,

,

th Atlantic S.. . .. . a. I ------ _ 925 453 33

1 Sir . . . 60 21,

ON Service Centel. . . . . . . . . . . . . . .

Mid-A lanfic : 731 13 .214 1 71 41 31 l

Matti. --------- ------ ------ --- N:970

11,11,

,Q 9 , if,b

.walk . . . . . . . . . . . . . . . . . . . . . . . . ph ,889 Ia . 1 0 ili31 112 37

lladdpli~_. . . . . . . . . . . . . . . - --- -- -- --- -

4

0 '883

411

3

10,3

. 14

8

19

3139

7 6

'

253

21 1 R cluni :

2

as.

2 34 : 2 38 22

6 2

.1amprop_ M ---------------- -

I

-Unt,11,11d 11 , id-At antic ReRapro

121

H 03

------ 127

54

--- ------ M ., Cc I 433 1,974I

id-A,lanlic Service an er ------- ------ - - - - -- -- -

Southeast:

,

732

1 1

39 42 43 1

A I.nt . . . . . . . . . . ---------- - -- - - ----- -

:

5

.1

5: 200 229

'2 2

1 6

Bi, inghenn-_----------- - -

'r

3 86

3

62 145 12 8 3

cal .o bl ---------_-------- - - --- 7 -

Glewnstail ------------- --- - --- --- --

a:

340

3 6

"

a 465

3 2

3

3 6

16

1761 4 3 1 D

. . . . . . . . . . . . . . . 1, . I o

g4

I :

4 757

a '

41 1

' :' ;g

6,498 249

17 21

Nonliville . . -------------- - 24

S t Re iona l th a

1

-- ----- 14V

161

2

ou e s g to d T

Southeast Rlgi?a-Centra oz. raining----

20 1 4

3596 18,942 52

-- ----- - ~ Cc ni, 1,138

Southeast Service Into' ----- - -- . . . . . -----

2 :

ii2a

472 46 1,098 41 1 Memphis Service Center- --------- -- ---- -- - ------- -

Ceptlal~.

7

9,528 241

CincianatiL 'a '' .. . .. . I -------- -- ---------- : . 859 15,022 372 42 414 v

Cie el.nd ---- -------------- ------

1 1 ' '

1 169

' 1

. . . .. . . . . .. .. . 63 497

Detroit ---- -----_------ 1 .: 424 a:826 30 9 13 2

Inchaparlis----------------------------- - M

Louisvil ae . . . ----- . . . . . . .

6,47 9

3 111

6, D04

3,561

24 3

186

2

21

~

11 7

Parkersburg .. . . . . . . . . . . . 6 ---------- - -

l T i i flte -- --- -

, 242

223 3 1 5

ra n ng ~r 1 T i_---- - --- -- --- 6 Central Regiona -- - Central Region Ceptr3 ize raining . . . . . . . .

150 22, 996------- 21 . 269

144

55

. . . . . __

, C a I ~64 - 1,462

Midwest Co. 'at Servic : e ... . . . . . . . . . - -------- - ----- -

1 11

10 53

Afterdeme . . . . 606

C poog ------------ ----- - -

h

- ---- -- ---

24:05

6 .001

23 C:6 7

15

125

"1

3237a

De . himtes,. . . . 1611~

Fargo . ----- - . . .. . . . . ~

1a 71 , 7

7 GI

1 55

to'

1

"1

5

34 302

Milwaukee------------------------- ------ - 116

O h

4 :0a 3 741 to 1 7

3' 3 3 7

m a _------------------- -- --- - -

S Lo

12,234 11 :455

4

04

: 1 51 47 2(1 3 ----- -

S! . . . . . . .

Sags

S

G: 00640

2 8a

32 18 4 %mg6ld ----------------- j -------- -

doorest Region-Centralized tannei ------ ---

6 54 3

13 3

23,529

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

21,321 1

1

1,94 3 hol Southwest d-st: garlic. Can it . . . . . . . .. .. . .. . .. . .. . -- ----- -

2 111 317

M

18

Allou" uerque_ . --_---------- ' 1P

.' " a 1 1 .a 316 55 5

1

Au,ti .. .. . . . . .

Ch an 1 :472 1,340 91 516 338

De%'~ . . . . . . . .

3:28 3

'5

. a 12'~S'

53

3

.3a" 30 2"

,

. .

Denver. . . . . . . 3 701 3 372 143 is I

Little Rei ~ . . . . . . . . . . . . . . . .

. . . . . . , 2

7 83

,

7 403

' 1

27 Z2

Me . Wrap. . . . . . . . . . . . . . . . . -----

. . . ,

6,560

,

1 147 21 1

fa

4

181 Oklahoma City . ----------------- - Wichita ------------------ _ --

Son thwest Region-Citiall.lurld 11-ilp""*1-- : -

5,558

20,321 128

5 : 1 3,

---- -- 17,794

21 4

126

62

2

. . . . . . . .

40, 2,37.

Southwest Service Cent.. . . . . . . . . . .

Western : 1, 221 BG

I

6~

Anchorage . . . -----_-----_- ---- 7

~

762 90 11

2 101 . . . . . . . . . . . . . . . . . . . . r r

1 :910 1,691 06

e ro ------ 45 5' -

H

.

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

ot 31 :351 la Wa 747 3 1 . 23!Losn I n 9 4

1

12

1 M

132 24

1

51,

11hropla ,

d

1 2, 4 1

' 3

169 1 7

Ia

IT

19 1

per

... . . . . .. . .. . .. . . . . .. . . . . .. . . . rila n .

Ren

o

Sall 6k ;61ty: . . . . .. . . ... . . .. . .. . . . .. . . . . .

3 460

:70 3

2 209

1

3 07 7 :

1,2.522

547

167

81

556 712 1 .033

S n Francis. . . .. . ---------- -- 7 31 4 : 7: 244 231 19 29 1

Seattle 8 . . . . . .. . . . . .

Waste, . Regional . . . . . . . . . . . . . . . . -- ---- -- - ------ --

5

1'7

211 6

72

1

. . . . . We stern Region- Centralized Training- ; 1 1 11, 21,067 14 226 1, 3 8 Western Service Centel .. . .. . . . .. .

2 :

3 0 62

a ~ 39

F.. .no Service

C

note' . . . . . . . . . . . .

I Includes g5.3 million financed from re, onlourarmanis .

! Does not include transfer to Genera

S

ervic a Admi

9

istration on the amount of $943,000 far rental at space .

Table 29-Obligations incurred by Internal Revenue Service, by appropriation and activity

Ile thousand, of dall-I

Appropriation by activity

Tota l

1970 a,I

Personnel inpen ation

and benefits

la,if 1971

Other

1970 1971

Total obligations appropriations and roonabu-tal . . . .. . . . 886, 159 981 .065 77& 528 848, 3G2 _I 07 . 6' 1 .70 .

Obligations against ripp,,Pdatfon funds --- _ . . . . . . .. . . . . . . . . . . . . . . . . . 879, 125 a7 5.Ti~ 77"2, 53i 8 W 51 06 .Wal 131, 21 :

Saloom, and expenses :

plal . . . . . . . . . . . . .. . . . . . . . . . . . . ---- ------------- . . . . . . . . . . . . . . . 25 569 27, 961 22 .214 N,513 115!1 1.421

ts-tv, di .[,.a ------- 11 .909 9 .90. 11 1 11 1 1 11 f . 2~. 1 a

Int no "d,t Ind lecurit ------ -- ----- - -

:

lf~053

~ : . ~~ : ~ 'D

2, 17.'

Raven .Total_ -ountarg and processing :

. . . . . . . . . . . . . . . . . . . ------- 2M299 237,526 177 .857 188, 532 36.442 48,991

Date Processing operations . . . . . . . . . 199,963 227,655 11 2 190 .023 32,727 47 63:

Statistical reporting . . . . . . . .. . . . 7,571 8.801

g :

, IG

7

443 845

,

1,351

District manual operations ------- - -------------- __ - 6,765 1,07D 3,895 I,DG6 2,870

Compliance :

Total --- ----- -- . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 639,257 710.238 572,460

_

631,447 66,797 78,791

Audit of W atoups-------- -- . . . . . . .

dalm an, Irbuml ,o ad JohmprIal Intel.,. . . . . .

'it*' a' or

329,089

1

1

'

357.13 7

171 . 112

96'8 85 -

1

14

..

12 51 3

151,423 2

31,231

17,256

34,624

scia i.1 m_tici ~ rs 2 09

Tax fraud and as

Alcohol, tobacco no I,- .... . . . . . . . .

'Ora

47:

50,083

" ~65

59: 4AO

1:

4 f62

42,414

46,59 1

" '''

17 .142

'

.0,771a 1

T achrocal roll Taxpayer exanle-cas and appeals ---- ------------------------ . . . .

ags and services. . . . . . . . . . . . . . .

28,011 1

13,255

29.166

14,721

26,27 1

11.13

'

27: 15a

13

'"

1 : 738

1 2"

1,90 )

Loops services --- 21 ._069 23.897

2

19. 1 2

1

:4R3 : 1 1 I2 .40Z1

Reimbursable obligations, total .. . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . 1 7,034 5.340 5,997 3,850 1 .037 49 0

of , Note.-A-unt ho,n do art include t,n,fer to GSA far lant at ams . ionerepturg 1 . $1,427,OOD in 1970 ; $948,000 in 1971 ; Wmfla, to GSA for early Records Retirements

495 000 in 1970 .

Table 30.-Quantity and cost statistics for printing

Fiscal year 1970 Fiscal you, 1971

Class of work

Quantity (thousands) Co

at

Quantity (thousands)

Cox,

(

'h,,,,Inl

d

(the sand

Items or Packages

offers)

~ ~Iag,, dDHIYS

(1) (2) (3) (4)

(

1 . Tax package, (1969) :

Package A (Form 1040, sshodul,s A, B. D. E R . I -------- ----------- -

Pack all p . D, E "' d form 4136 )

I

(For. 1040, schaduous

A ' "'

T . C, lr

966.943

28p.111

G4 .463

11 2 5a, fla I I ~ gi ;. )

partnership In- Package (F( ron 1 5 . had i D . d [rons

oulle o" ' _

'~5 :

231 33 ---- - Capital a

Camaralun foixPaclkxga~Cal,nda, y... film Forn, 1120 and lia : 1

arhad .les) . . .. . . . .. . . --------- I . . . . . . . . . . . . .

. ------------------ 4 .400 ago 33 -- ----- . . . . . . . . . .

Corpoxxtron Tax P,,kage(hacalgar fdars-Form 1120 Xhrdul,O'insI'uc.

"a's

forms 1120 W, 3458, 44 6, 4626, 7004) ------------------------ -

11, Tax pa,laga, (1970) :

15,000 1,000 63 .. .. . . . . . . . . . . . . . . . . . . . . .

Parkerrocra: 12((FFOOI, ,pa 1041 ,1 lpsj~ucbp&1.1i'24 lpes) . . . . . . .

1041 ach

adir , A D &

R, and Instria,tions-olD

257,000 51 .400 78 (

pages)

- - " ' --

. . . . . .

---- -

. . . . . . . . . . . . 157,500 17, 5DO 49 ; Package 3 (Farm loM6, e' 6 E i H K i

4 13 G and

Notu.clure, -56 pages) --- . . . . 1 ------ . :_ .--1 158,550 11 1 7 1 54 ! P kage 100 (Form 1065. schedule 6 and lastturt-s-20

P

: cka,,o 1

120 (For, 1120, schedule 0, Form, 1170-W. 346, 4526 and

7, 325

1 :' 6,

4

Instructions for Farm 1120 and h .dele D-32 pages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. .

.

.

. . .

. "0 "

0

ployment tax packa

Pub 393 (Firms 7018 91 941C, W-2, 941A . W4-E, Pub 213, and unamploy.

:~ on a tax

al W ,,, --- ------------ --- ---- -- -- - "

---- -

11 11 4 110

M 6 '

1 2

,as , turns and in LI i ions far never mailing to ta,paye,- Toot i a :

-

'2: ~

1,3 58

.3:~S4

3. 73 89 6 1 ~.1 I 11: 99 5

IVV: Orhe, tax returns. instructions. publicwusb fo rpos, and pamphlets----------- - -

Ad.imsi rative forms and paimphil ats . -------------------------------- -

1 ..:09

. 71D Call ":3 1 33 05 111~ DID

g7!

1 3 21:

V1 . Field wintopir it . . . ----------_------------------ ---------------- 307,288 . . . . . . . . 1 . UII 354 .229 . . .. . .. . . . . . 1,30(

Exclso tax stamps ---- 2 645,543 . . . . . . . .. . 1,098 2,556,612 ---- --- - 1. 19! Grand let. ------- I

- * --

18.88

0

__ _ ---- - --- 17, 59S

126 / Annual Report or Statistical Tables

I

Annual Report of Statistical Tables of 127
I

11 I I

Index

A

Acts :

Airport and Airways Revenue Act of

1970.

22

Explosives Control Act,67

Federal Alcohol Administration, 26

Federal Tort Claims,51

Gun Control Act-1968, 26, 38

Organized Crime Control Act, 66

Tax Reform Act 1969, 66, 67

ADP processing, 11-15

Advisory committees . 22, 75, 76, 77

Alcohol and tobacc, tax :

Advertising, 28

Chemical analysis and resauirch, 28, 29

Enforcement activity, 17-34

Establishments :

Inspection of, 28

Qualified, 28

Industry circulars, 28

Label circulars, 28

Operation Dry-Up, 27

Prosecution, 27

Publications, 28

Regulatlons~7

Seizures and arresM 27

Supervision on-premism, 28

Statistics on, 28

Appeals:

Appellate division, 23

Chart on, 24

Processing of, 24

Statistics on, 24, 122, 123

Appendix,87

Assessments, additional (See Taxes)

Assistance;

Foreign toy, 46, 47

Leglslafive~ 53. 54

On-site, 46, 47

Overseas, 46, 47

Taxpayers, 1-6

Audit exempt organizations, 2

1

a

Bulletin, Internal Revenue,6

Business master file,26

C

Charts:

Organization,80

Chief Counsel. Officeof

Analysis of cams flowing through,

50.5

1

Cases Involving criminal prosecution,

27,31

Disposals of cases by, 50, 51, 52

Civil litigation, 52,93,94, 95

Claim (Sea specific Item)

Collection litigation legal services (See

General Litigation Legal Services)

Collections:

Alcohol taxes, 13, 101

Corporation income taxes 13 100

Disability and olcl~age l7su

;;rn~; . 13,

100

Employment taxes, 13, 100

Estate and gift taxes. 13, 101

Excise taxes. 13, 101-106

Individual-income taxes, 13, 100

Interest equalization, 109

Collections--Continued

Old-age and disability insurance, 13.

,00

Other,13

Railroad retirement, 13, 100

Tobacco taxes. 13, 103

Unemployment Insurance, 13, 200

Witholding taxes. 13, 100

Commissioner:

Contest of suft 123-125

Commissioners of Internal Revenue, 86

Competent authority activity, 44, 45

Conference:

Appellate . 23

Procedures . 23, 24

Cooperation, Federal-tax, 62

Conventions, tax (See tax conventions)

Coordination and cooperation with bureaus and agencies, 61

Corporation income taxes:

Additional assessmerrts, 21

Claims for refunds, 19

Collections, 13, 100

Refunds. 14, 112

Returns:

Examined, 19

Filed. 14, 123

Statistics on, 14, 213

Courtlay

Circuit courts of appeals, 94, 95

Of claims, 51, 55

Supreme, of the United States, 93

The Tax Court of the United States,

50, 52 .55

U .S. District, 50, 51

Criminal prosecution :

Analysis of cases, 27, 31

Cases. disposals of, 31

Results of,31

Supreme Court decisions In, 93

Current research program, 58, 59, 6

0

D

Data Processing activities, :11 . 12, 13,

15, 16

Delinquent accounts:

Disposals, 25

Other 25

Statisiles on,25

Delinquent returns and delinquency In .

vestigations, 25, 26

Additional tax from, 25

Analysis of. 25, 26

Statistics on, 25, 26

Determination letters:

Employee benefit plans,8

Exempt organizations,8

Pension trust plans,8

Self-employed persons benefit plans,8

Statistics on,8

Disability Insurance taxes:

Collection, 13, 100

Refunds . 14, 112

Disallowed, claims. 19

Disciplinary actions, 74

Discriminant function,18

E

Employment benefit plans, determination

letters on,8

Employment taxes :

Additional assessments resulting from

examinations,19

Claims for refunds, 19

Collections, 13, 100

Refunds of, 14,1 12

Returns:

Examined . 19

Filed, 14, 123

Enforcement activities :

Additional tax from, 33,34

Alcohol and tobacco tax and firearms.

17-34

Appeals, 23, 24, 122, 123

Claims disallowed, 19

Delinquent accounts, 25

Delinquent returns, 23, 26

Examination program, 19

Mathematical verification, 16

Tax fraud Investigations,29

Workflow In Service and the courts, 33

Estate tax:

Additional assessments, 33, 34

Collections, 13, 101

Refunds of, 14, 112

Returns :

Examined, 19

Filed, 14, 113

Estimated tax, declarations of

Corporation . 13

Individual. 13

Examination, additional saaessments,

from, 33,34

Examination program:

Claims for refund,19

Classification and selection of returns, 1 8

Overassessments of tax, 19

Returns examined, number of, 19

Tax recommended . additional. 21

Excise taxes :

Additional assessments, 33, 34

Collections. 13, 101-106

Refunds of, 14, 112

Returns filed, 14, 113

Exempt organization:

Determination letters on, 8

Master file,21

IF

Facilities management

Forms and form letters, 70

Motorvehicle fleet, 70

Printing, statistics on . 127

Space,70

Tax tome, new [wk. 70

Telecommunications, 69, 70

Federal firearms regulations, 26, 38,

66.67

Federal-State cooperation, 61

Agreements,61

Audit coverage, 61

Computer-information exchange, 61

Training,61

File :

Exempt organization master file .

21,26

Individual master file, 26

Federal tax deposit system, 12

Financial management :

Statistics on,66

Annual Report/ Index / 129

.1 228/ Annual Report/ Index

j",
Firearms program, 38, 39 .40

Crime control, 38, 39,40

Foreign Investors, 4 5

Foreign tax assistance program, 46, 47

Foreign bay officialv. m1whance to . 46 .47

Fa ;~

; of Printing, 127

New For ns, 88, 89

Forms and form letters, 70

Fraud Investigatims. tax, 2 9

Q

Gasoline tam :

Collections, 104

Refunds, 11 2

Game.[ Litigation Legal Services, 52

Gift taxes:

Additional assessments, 33. 34

Collections, 13. 20 1

Refunds of, 14, 112

Returns filed, 14, 113

IIncome tax(es):

Additional. from enforcement, 33, 34

All returns. 24

Corporation, 2 4

Processing of protested cam, 23

Indictments, 27, 31

Individual Income taxest

Additional assess.ents, 33, 34

Appellate Division, processing of, 23

Collections. 23, 200

Mathematical verification of, 16

Refunds of, 24, 11 2

Return:

Classification end examination of,

i s

Filed, 14, 123

Individual master file, 26

Informing and enlisting taxpayers. 3-6

Inspection activities :

internal audit 71

Internal Security, 72

Investigation, 71 . 72. 73

Statistics on, 72 .73, 74

Intelligence Division :

Statistics on, 3 1

Tax fraud Investigation, 31

InterAmerican Center of Tax Administra.

tars, 4

7

International tax tmlnin& 46

Interpretative activities, 54

i

Joint Committee on Internal Revenue

taxation. 20

L

Laboratories:

Testing, 28. 29

Legal activities, 49

Legislative activities, 49

130 / Annual Report / Index

Legislation:

FIrearms. 26, 38

IM

Magnetic tape, 16

Management activities, 65

Map of Internal revenue regions and dis~

tricts, 8 1

Mathematical verification,

Additional tax from, 16

Statistics on, 1 6

Models, tax, 62

0

Obligations Incurred, Internal Revenue

Service. 125. 126, 127

Officers, principal, Internal Revenue

Service, 82

Operation Dry-up, 27

Operating Financial Plan, 66

Organized Crime Drive, 35

Overmaisments, 33, 3 4

P

Pension trust plans . 8

Personnel:

Equal employment program. 67

Handicapped, use of. 69

Investigations, 71, 73

Recruitment, 67

Statistics on, 66

Plarming-Prograrnming-Budgeting System .

5 8

Planning activities, 58

Programs :

Foreign tax assistance, 46

Identify U .S. taxpayers, 42 43

Overseas taxpayer carnpilance, 42,

43.44

Strike forces, 3 5

Taxpayer assistance, 3,4 5

Taxpayer compliance me;surement. 60

Prosecuflor6 31, 32

Protested cam, statistics on, 24

Public information program. 3, 4, 5

Publications, taxpayers, 88, 89

R

Railroad retirement taxes. 13

Recruitment, 67

Refunds :

Excessive prepayments . 13, 14

Stated= on 4 112

Undellvensbl~,'14

Regulations:

Alcohol and tobacco taxes, 7

Other, 7

Selected regulation published, 7, 8

Releases, no", 4

Requests:

Technical Advice, 8

Revenue Rulings, analysis of, 7

Returns filed :

Classification and selection of, 1R

Examination of, 19, 20 . 21

Number examined. IQ

Projection, 63

Statistics on, 14, 113

Verification, 1 6

IS

Self-employed persons benefit plans, deSam, terminations letters on, 8

nar, Inter-Arnerican, 47

Semice to taxpayers, 3, 4, 5

Statistics. highlights, I

Statistics of income releases, 61

Supemision of the Alcohol and tobacoo

industries, 28

Supreme Court Decisions :

Civil cases, 92

Other court actions, 94

T

Tax conventions,

Tax forrrm 88, 89

Tax models, 62

Taxes, Additional:

From delinquent returns secured, 25

From enforcement 33, 34

From examination. 29, 20, 2 1

From mathematical verification, 16

Taxpayer assistance program, 3, 4, 5

Taxpayer compliance measurement pro.

gram, 60

Tax reform, 66, 67

Tax rulings:

Request for, 7

Statistics on. 7

Tobacco tax(es) :

Arresb, 27

Collections . 13

Refunds of, 14

Results of Criminal action . 27

Returns filed, 14

Seizures, 27

Statistics on, 13, 14

Tort claims, 51

Training.

Foreign, 46, 47

Other, 67

LI

unemployment insurance tax":

Collections, 13, 100

R funds of, 14, 112

R:turns filed, 14, 113

V

Verification, mathematical, results of, 1 6

W

Winn, taxes collected, 102

Witholding taxes. by -player, 13, 100

Workflow in service and the Courts, 33

us. GavounlExr nUNTING OFPMAV. 0-~.