---

--

---

52 AlInual Report 53 

Tax offers in which court proceedings are involved, or climmal prose~

cution is pending, are considered by the Chief Counsel or by the appropriate regional coun~l.' These office'> received '19B offers, disposed of 

232, and had 125 pending. 

In the alcohol, tobacco, and fireanns categories, 290 offers were received; and 295 were disposed of, leaving a tolal of 39 on hand. 

The overall eompromise workload on June 30 consisted of 3,605 cases 

awaiting consideration at aU Service level.<;, a decrease of 4 percent from 

the preceding year. The number of cases on hand has kveled off in 

the -past several yearn, indicating that work inventories are approaching 

minimal size. 

Compromise cases closed are shown in the following table: 

Offer.. in compromise dispoSed of 

Amount (l~oulOnd dell.,,) Numb., 

...-

Tne III I.. 0' pe~'lly li.bil,ties O~e",

'"' 1961 , 1962 , 1961 ,~,

------------ O~e... ''''Opl'''', 1.131. ....•. _. __ 11,061 10,693 26,053 43,453 7,106 ----- --------- Income, p,o~I', ell'te, and gilltn.'_______ m m 16,153 32,01B 4,951 fmpl.ym,nt <lnd ..IIhholdinl Uxe,.._. __ ._ m 

Olh" ,"ci" IU.. _______________________ m "" 4,667 5,818 1,08 Alcohol t..... ___ ..___ . ____ .•••• ____ " '"' '" ,~ " ~~~j~~ ";:n~ili~~I~O~ _~~ -"_I:!~ ~~~:: : ::::::: '" 3,092 3,706 ''" 3,083 3,234 1,662 1,525 ~,

6,IZ6 5,287 ,~

---

4,327 4,703 ------ Ottall ,eje'led..' ..ill1d....n, t.taL 69,989 74,604 10,182 ------------

sa, 193 ---

Inc.mt, p,ofil....I.Ie, .nd \lift taxes ______ 1,545 1,613 50,374 6,823 Empleyrr,oM .nd ..,Ihholding tlxes__ I,lOS 1,204 12,683 9,945 2,166 AlcohOl Ia.t:>_. _________________ . _______ " H. 

DelinQuent penaltie' on all tax... __ •_____ '" '" " Olhe, ."i.. t>....._••• _________ 

SpllC,fJC pen.llie,. __ .. __________ .. _____ '" ." S, 917 S,176 1,027 

'"' I, 117 '" '" '" .. '" H 

,., 

9,708 

6,166 

1,667 

1,426 

m " 

" 11,451 

8,643 

I,73S ( '" 

'",'" 

Collection Litigation Legal Ser'vices 

For the past 4 years the legal work connected with the hinctiorLS of 

the district directors' offices has maintained the level of activity it 

reached in fiscal 1958. The number of cases received during the current year was 10,374 cOll}pared with 10,341 in 1961. The number of I 

cases disposed of was 10,380 compared with 10,405 last year. The 

inventOly of pending cases stands at 4,385, a dccline of 6 {rom the 

4,391 cases pending at the end of J9Gl. For a detailed report of the 

cases-received and disposcd of see tables 23-26, pagcs 1?8 and 179. 

Asidc {rom the legal work which can be reported on a casdoad basis, 

the infonnal assistance to the district directors' offices, rendered by tLte 

lawyerl> in the regional counsels' offices who handle collection litigation 

• 

Report on 0 peru/ions 

case.'!, continued a.<; in prior years, This infonnal assistance together 

with the assistance rendered during the periodic visits to the district 

directors' offices by these same lawyers a.<; a part of a continuing visitation 

program is a result of the reorganization program begun some 9 years 

ago under which much of this legal work was decentralized to the regional counsels. " ­

As in prior years, the lawyers in the regional eounsel.!l' offiees participated in the~ continuing in-service training programs developed by the 

Service to train and give guidance to the personnel in the distriet dif(~(:­

tors' offiees dealing most directly with collection litigation matten-o 

Giving emphasis to the growing importance of the international 

aspects of the Internal Revenue laws wa.<; the establishment of an Intcrnational Operations Braneh iq. the Collection Litigation Division of the 

National Office to furnish legal advice and assistance to the Office of 

International Operations. SiQ.c,e September of 1961 this branch has 

acted as primary legal advisor to the Office of International Operations 

and its activity is included in the tables referred to above. 

Four case~ pertaining to problems considercd in connection' with colleetion litigation legal work were decided by the United Statcs Supreme 

Court. For a summary of these case.,; see pages 122, J23, and 126. 

Federal-State Cooperation 

The tempo of activity under thc Federal-State cooperativc infonna-, 

tion exchange program increa.<;ed -throughout the year. New agreements were concluded with Indiana, Missouri, Ohio, and Oregon, thus 

bringing to 13 the number of States under the program. Negotiations 

wcre initiatcd with 8 additional States and considerable progress has 

been made in developing agreements with most of these. Interest in 

future participation in the program ha.<; been exprt5Sed by a number of 

other States. As a result of the growing acceptance of this program, the 

standardization of procedures, and a detennination of the nature and 

scope of exchanges under the agreements, the Service has extended the 

authority of regional commissioners and district directors in the conduct 

of negotiations for the drafting of agreements, 

International Operatioits 

The organizational and functional reVlSlons of the Office of International Operations made in fiscal 1961 bore the fruit of more effective 

compliance in fiscal 1962. More than 70 revenue agents, specialists in 

international tax matters, now as'Oist district office personnel in coordinated examinations. 

t 

.L
 
Annual Report 55 ! 54 

Research and anaJysis of data on problems created by the rapid growth 

of foreign invcstment by U.S. taxpayers are identifying more specifieaJIy 

the legislative and operative actions needed !O encourage voluntary compliance in the foreign area. AnaJysis of data of the previous year's controlled audit program in the mternational arca indicates that tbe 1,000 

taxpayers examined had approximately 6,000 controlled foreign affiliatcs 

and subsidiaries. The program' disclosed the extent to which "la-x 

haven" countries are used to deposit and shift profits from the United 

States to eountries in whieh there are few, if any, income taxes. 

The dillicullies of obtaining full infonnation on foreign affiliates are 

much greater than on domestic entities. Foreign economic espionage 

laws have b~cn invoked to delay, hindt:r, and sometimes emirely prevent 

the acquisition 'of data pertinent to examinations. Researeh eominues 

on the most praetieal ways to require the production of information in 

regard to foreign subsidiary and affiliate transactions. 

To promote voluntary compliance abroad, the Serviec scm 21 agents 

to 97 cities in 51 foreign countries to aid and assist both citizen and alien 

taxpayers subject to U.S. revenue laws. Practical tax law training and 

aMistance courses were conducted for memberS of the Judge Advocate 

Gcneral Corps al 10 overseas, military installations. 

Thc Director ?f the Office of International Operations consulted with 

foreign authorities in the disposition of 10 cases involving double taxation. Rcpresentatives abroad also 'prepared 130 collateral repom involving information connected with cxaminations being conducted by 

district audit and intelligencc divisions. 

The Service maintains permancnt foreign posts at Paris, .London, 

Ottawa, Sao Paulo, and Manila with·oue or more technieal employees at 

cach. As thc fiscal year cnded the establishment of a foreigu post in 

Mexico City was in thc final planning stages. 

The Office of lmclllational Operations performs much of the:: administrativc work connected with .tax treaties between the United States and 

forcign countries and also collects the tax required to be withheld from 

United States souree income of nonresident alien individuals, partner~

Ships, and foreign corporations. Income paid to residcnts of laX treaty 

countries is subject io withholding in accordance with rates set forth in 

the appropriate tax treaty, In certain cases dh,idcnds paid to nomiuees 

in tax treaty countries are subject to an additional 15-pcrcem tax. Foreign withholders collect and renut this tax. 

Taxes withheld by domestic withholding agents from the income of 

recipients in treaty and non treaty countries, and taxcs rcmitted by foreign" 

withholders are as follows: 

I;,; 

, , ' 

Report on Operations 

TOle wilhheld fnnn pllym~ntB Ito nODZTJjident alien entities of trellty ond nontreaty countries 

(TAowolId 

dolla"j 101.11.. •• " • ••• __ •••• _ 8U59 

Tolil t.om I.,"jl~ withholdin. "."011.._ 10,m

Tolli hom domelle ....ittlh.ldinJ ".ents ••••- •••--- ----- ---- ---- ----. _0 __ •••---- • 1 77,023 

~::Yr:% ~~~Y;ie:s':::: ::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::: ~: ~~. AUltroh __ • 00 • __ ._ _ • • • • __

A.shi•._. . . . . . . ._ '".. B.ll;om 0 • "_" ••• _ 1,910 Clnld!.._. " '.. _.. _ . .. __ 14,310 Donm.,k••• • • •••• • • • _ Finland • •_••• __ •• • _ Fr.nce 0 •• •• , • • • _ ""

Germany 2,643 . _ ." . . _ . ,. _ 59 

Gruuce 1,058 __ . 0 • • • _.. •• _ •• _ '" r1:1:~_~_~~::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::1 '" 1,130 

4,333 ,.,." ·······························1 '" 

1,362

~~~¥~~~~t~~~I~~~~~~~~~:::::~~~~~~~::~~~:~~~~~~~;:~~~~~~~~~~~:~~~~~~~~~~~~~~~~~~~~~ ..
 P.kislan " • •••• ••• __ •• •• __ •• __ • 

5...d8:l • •• --- ----- ----- -_ ••• _ •• __ •• __ ._-_._ ••••••••• _---_ ••• ­

'" Switzerland_.__ . ._ .. _. ._. . ... ... .. . .. _ ~"" 15,295 Un;.n 01 

0 

South Arrica ._.._ m 

18,522 ~~~e::i~i~~_o_~::::::::::::::::::: ::::::::- ­ '" 

Informants' ~ewards

A total of 4,147 claims were filed by in(onnants in fiscal 1962, However, 83 perccnt of the claims closed were rejected either becausc they 

could not be substantiated or because they failed to meet the eligibility 

requirements of the regulations. 

Informants receivcd $587,256 in payments from 665 claims approved 

by district directors. This is an increase of 7 pcrcent ovcr the year carlier. 

From mformation furnished by informants, the Service recovered $13.5 

million in taxes, penalties, and interest. 

Below is a table showing a 2-year comparison of this activity: 

Ilcc:cipl and di.!3posol of cillims for infonn.o"ls' rcwD.nb 

,~, ,~, Sl.iloJ 

',711 4,~rg

~:;:i':lu.l~_~.::::::::::::~::::::::_::::::::::-::::::::::::::-::_-::::::::~_"_~:~r-- 4,141 ~. 401 msposlld Of. loll!.. • _ J, i21 4. US 

3.!~ l,Hi 

.. ___ -----------------"0----1 

~i.e;~:::::: :::::::::::::: :::~ ---:::::------------- ---- _____________ ------------ . _____.U~"0·_·_1 • -­ ~, ,~

.. ,~~ ~. IH ~~:~~f~Ij~=~\,;-di._,,;.·",.iio·s-.d-o, -_-_~~:~~:_ ~~~:~~~~~--- --------- -------..:iIOII.ii:: S8~:~ ~.914

-.d;...!!·..&a·,;....:.... 
57 56 Annual Report

Alcohol a;"d Tobacco Tax Enforcement , 

Significant progress was made to eliminate the well-organized illicit 

a1coholtraffic which has flourished in the metropolitan areas of the eastern seaboard. The East Coast Plan has proved highly effective against 

the principals and key subordinates of the syndicates engaged in largescale production of nontaxpaid alcohol, by reducing the ineidence of 

such violations through the location and prompt seizure of most of their 

distilling plants. As a result, the major operating groups have sustained 

severe m9netary losse5, and have been forced to abandon or curtail operations and LO seek outside finaneial suppon for new ventures. Available 

intelligence indicates that these illegal combines are now disorganized, 

thdr lines of supply seriously disrupted, and the eost of the illicit product 

increased. 

The Mandatory Preventive Raw Materials Program has continued to 

be an effective method of curtailing the produetion of nonta.xpald spirits 

by means of soliciting the voluntary cooperation of dealers in refusing to 

sell the essential materials 10 known violators or suspected penions, placing non-cooperating dealers under demand to report dispositions, thereof, 

and prosecuting those who violate the regulations. For example, sugar 

seized at illicit stills is frequently packaged in' relatively small ,containers ; 

some of the larger violators are finding it extremely difficult to accumulate sufficient quantitieS to meet operating schedules; some of their stills 

operate only intennittently due to uncertain sources of supply; they are 

frequently fOrced to travel great distanees to sec~rc raw materials, at 

increased cost; and in many iristances they are finding it necessary to relocate their activities. Th~ effective ,application of the eontainer provisions 'of Part 173, CFR, has been another important adjunct to our 

enforcement effort. The scarcity of the usual types of containers heretofore available 1.1? illicit distillers has compelled them to use less aq.aptable 

substitutes oJ:!. an ever increasing scale. 

The seizure and forfeiture-of equipment (principally vehicles) used or 

intended lor use in violation of the internal revenue laws continue to serve 

as an effective and impprtani s;netion In the enforecment of the aleohol, 

tobacco, fireanns, and gambling laws. The use of this sanetion carries 

with~it the obligation to proe~ and rule on petitions for the remission 

or mitigation of forfeiture filed by pem)lls with an interest in the forfeited 

property who did not know and had no reason to believe tha[ the p~perty

would be used illegally. During this fiscal year 511 peti.tions were can. 

sidered and disposed of after investigation and procc:>sing in the regional 

offices. ."i. 

. ,~.

'"A,,,-	 ,:...~;':

Report on Operations 

Seizures and arrests for violations of these laws were as follows: 

S"".-:ur4'.!! und lI.rre.ll(6 ror u!cohol, tobacco, and fireUrmB "iolulionll 

,., Item 

S.""t~:

$Iillo ' '." ,..... •••. ' " " ••••••••••numbu •• .... ,~,

6.826 

HGlltup"tid di'lillod 'lIirjls....•. '," " .. , I.llono.• 114.512 1S3.929 

HonLulIIid .ina _, , ••••••••••••••••110 .••• 6.311 

3,421.'. '"~n 3,66g,51B ~~~je.':'.:" :::':.::::':.:: :'.' '.:': ::~', '_::::':_::::',:'.:-.-.'.::-.--:'.-u~bei:: 2,621 2.1&8 

:'OD.rlY (DDDrliU(j ••Iuo) , __ " '" . ,," •• _ ' doll.,._. 2,252.718 2,3liS.26~

"".ls' ._•••••••••••••••••-. __ , , , _._ ••• number•. g,l26 '.S03 

HotL-lncluda seizur,," Dnd ~"esls in ca.es adopted... "".11 U oliainOllld. by Ille Inlorn.lllovenue $S1.i~L

Iinduda 2 Itlestllor tob~cec In .iolalion••nd J!l8 ."..ls lor firearms .iolalion. in 1!l62. tOmDlred ..itll6 ud 514, 

'IlIDlII:Ii.ely, in 1!iI61. 

Fourteen southern states aeeounted for 93.4 perecnt of the stills and 

95.6 percent of the mash seized in 1962. Seizures in all categorics declined with the exception of stills and nontaxpaid distilled spirits. 

Significant court decisions im'olving the admissibility of evidence in 

'criminal proeeedings, and the related field of forfeitures for violation of 

internal revQlue laws, are described on pages 127~129.

Firearms Program 

Close cooperation with the Department of Defeme has brought about 

a complete revision of TB ORD 412, "Demilitarization of Surplus and 

Foreign Excess Anny Ordnance Material." As a result, a more thorough 

job of destroying surplus or obsolete firearms is now 'being done by the 

military services. The destroyed fireanns are now being reduced to 

unsalvageable scrap, and removal of the profit motive has sharply decreased situations involving unauthorized transaetions relating to military-type fireanns subject to provisions of the National and Federal 

Firearms Acts. 

The Federal Firearms Act was amended b)' public Law 87-342, 

effective October 3, 1961. This amendment was sponsored by the Attorney General as one of the measures needed to more effectively eombat 

organized erime. 1t has strengthened the Act by making it unlawful for 

any person under indictment for, or eonvicted of, a crime punishable by 

imprisonment for a tenn exceeding one year, to transport, ship. or receive 

firearms and pistol or revolver ammunition in interstale or foreign com­ "	 merce. Prior to this amendment the prohibition was limited 10 persons 

indicted for, or convicted of, a "crime of violence." Part 177, CFR 

(Interstate Traffic in Firearms and Ammunition, Federal Fireamls Act) 

was revised to eonfonn with the amendment. 
58 Annual Report 

Regi~lralion of fireanns totaled 3ol9,311. compared with Bt ,7,02 in 

1961. The ~ubstantial increase was due primarily to the production of 

a large number of automatic weapons by the Anned Forces. Investigation of violations of the National and Federal Fireanns Acts and the Act 

of August 9, 1939 (49 U$.C. 781) resulted in the perfection oJ 444 

criminal cases, 398 <lrre,;ts, and (he seizure of 136 vehicles and 1,365 

fireanns. 

The restrictions imposed by the National Fire<\nns Act on the impollalion of fireamls received their fin;t judicial lest and the COUll supported 

the Selvice's interpretation of the statutory language as narrowly limiting 

the importation of such weapons. A well-known dealer in firearms filed 

an application to import some 500 Thompson submachine guns urging 

that such guns were not commerciall~ aV<1:ilahle in the United States. 

The application was denied by the Sen.'ice becan.~e the applicant had 

failed to establish that the weapons were "nnique or of a rype which 

cannot be obtained within the United State;;," The importer thereupon 

Supervision' of the 

Alcohol and Tobacco 

Industries 

General 

A committeI': was e'!tablished on Mare:h 1-, 1962, 

to study the industrial alcohol and liquor ta;< laws. 

The objectives or the committee are to achieve the 

utmost simplification in revenue control and ta;< detennination so that more econOl:nieal Government 

supen.'ision can be attained and the indnstries will 

have the greatest possible degree oJ operating lati· 

tude eonsistent ",,--jth effec­ petitioned the District Court for the District of Columbia for relief alleo-­ . . tive revenue protection. ing that the denial of its application was arbitraT)' and without warr<1:nt in The Director, Alcohol fact. The government's motion to dismiss was granted. and Tobacco Tax Division, The conferences on legislative proposals wit h respect to firearms legisla­ testified before the Sub­ tion, called by the Staff of the Senate Sl1bcommittee on Juveuile Delin­ committee on Antitrust

quency, eontinued during the year. Representatives of the Service as and Monopoly of the Com­ well as of the fireanns industry attended. Extensive amendments to the mittee on the Judiciary of Federal Firearms Act were prop0'ied. Briefly, thc proposed amendments the United State'! Senate as would increase the fees for licenses for dealers and man~factnrers of 

to the scope of laws and fireanns and place restrictions on the availability of pistols and revolvers regulations administered to i.uveniles, palticularly through so-called "mail order" sales. by the Service relating to 

packaging and labeling in­

• 

I 

~,

l"

cluding the standardization 

of container sizes for bottling distilled spirits and 

wines. The hearings were 'held for the purpose of 

inquiring into packaging practices with respect to 

all commodities; practices whieh many witnesses referred to as misleading and deceptive: At the conclusion of the hearings, Senator Philip A. Halt, 

presiding, commented upon the inadequacy of Federal laws, in general, to curb unfair competitive 

practices in packaging, but obsen.'ed that the Service 

had done successfully that which had been described 

as impossible to do, in thc case of market·basket 

items. 

A review of all revenue rulings issued under law 

and regulations prior to July 1, 1960, the effective" 

R~POTf on OpeTatioflS 59 
,
 

Internal Revenue laws, and 27 under the, Federal Alcohol Administration Act. . 

During the year 44,861 applications for label approval or exemptions 

from label approval'were processed, as eompared with 40,565 in 1961. 

A total of 86,420 alcoholic beverage advertisements and 2,701 radio 

"commercials" were examined for compliance with laws and regulations 

governing their form and content. The Service reviewed 1,054 proposed advertisements and projected advertising campaigns volnntarily 

submitted by the industry prior to publication. 

The National Conference of State Liquor Administrators and the 

i' National Alcoholic Beverage Control Association, Inc., representing all 

1 of the State alcoholic beverage control agencies, have' agreed to join 

with National Office officials in a study of State and Federal regulations 

controlling alcoholic bcverage advertising to fmmulate specific recommendations for any changes needed to achieve greater uniformity in aQ.­

vertising restrictions imposed upon the industry. 

.1 

On-premises Supervision 

The c.bntinued study and development of improvcd and streamlined 

methods of Government supervision of distilled spirits plants, fol.1owed " 

by pilot operations to test the conclusions, has resulted in a decrease of 

89 inspectors (on-pr·cmiscs) by eliminating positions which became 

vacant during the year. The feasibility of still further rednctions in the 

on-premises supervision foree, withont unacceptable risks of revenue 

losses, is being tested by additional pilot operations initiated near the 

close of the year. 

60 Anllual Report

date of Public Law 85-859, was completed. As a result, 168 were,found 

to be no longer applicable and were declared obsolete. 

A",thorizution of Industry Operations 

An indication of the extent of activities relating to the -authorization 

of industry operations may be obtained by reference to statistical tables. 

Permit actions are shown in tables 10-12, on pages 163-165, and the 

numb.er of establishments qualified to engage in the production, distribution, storage, or use of distilled spirits and alcoholic liquors, is shown in 

table 8, page 162. Corresponding figures relating to cigarettes, tobacco 

products, and tobacco 'materials, are shown in table 9, page 163. 

The National Office processed 684 fonnulas for rectified products, and 

127 formulas for wine; reviewed 3,495 qualifying docnI1).ents; issued to 

government agencies a total of 20 pelmits to use tax-free spirits and 14 

permits to use specially denatured spints; approved 133 distinctive liquor 

bottle<;; and acted on .64 offers in compromise involving violations of 

Report 011 Operatiolls 61 

Inspector (on-premises) supervision was provided at distHled spirits 

plants whose operations -and acti~ities involvcd transactions in distilled 

spirits, as follows: Prodnction, 809.5 million tax gallons; denaturation, 

513.4 million tax gallons; warehousing, 1 billion tax gallons; and taxpayments, 184.0 million tax gallons. In addition, 85.2 million proof 

gallons of distilled spirits and wineswcre rectified, and 212.7 million winc 

gallons of distilled spirits were bottled. 

Inspection ofEstablishments 

PHot operations to test new or revised proeedure<; and techniques used' 

in conducting selected inspections at brcweries and bonded wine cellar.; 

were ·completed. As a result, the majority of the new procedures, including the use of a "Plant Profile" as a basis for an audit approach to 

inspections, will be applied in selected inspections of distilled spirits 

plants, breweries, bonded wine cellars, and tobacco produets factories. 

The preparation, testing, arid institution of these new procedures required considerable time and this contributed to thc reduction in the 

nnmber of inspections made-from 36,044 in 1961 to 32,260 this y~ar.

Breweries and wineries snbjcet to inspection prodneed 96.4 million barrels (of 31 gallons each) of beer, 168.8 million gallons of still wines, 4.3 

million gallons of effervescent wines, 4.6 million gallons of vennouth, 

and 13.0 million gallons of special natural wines other than vcnnonth. 

Tobacco products factories, also snbject to inspection, produced 6.7 

billion largc cigars, 164.7 million small cigars, 11,110 large cigarettes, 

529.9 billion small cigarettes, and 169.2 million pounds of manufacrured 

tobacco (including smoking and chewing tobacco, and snuff). 

Chemical Analysis and Research 

The National Office laboratory, in coopcration with offieials of the 

Frcnch Government, established guidelines for the chemical and physical 

examination of French brandies intended for importation into the United 

States. In collaboration with the distillcd spirits industry, studies were 

carricd out on a number of projects concerned with (1) new proccdures 

for aging whisky and (2) entry for storagc at higher proofs than traditionally nsed. ­

More aetive participation by indnstry scientists has been secured in 

dcveloping official methods of an.a1ysis for aleoholic beverages under the. 

joint direclion of the National Office laboratory and the Association of 

Official Agricultural Chemists. Instrumental methods of analysis are 

'r~placing some of the older laboratory techniques. More emphasis has 

been placed on re<;earch activities since the change<; in industrial techI 

l: 
62 Annual Report 

TIoIog)' require corresponding modemizatjon of (est plOcedu~es. , The 

results of this research have been published in scientific periodicals. 

Approximately 37,900 samples ......ere received and examined in the 

National Office and regional laboratories of which approximately 9,500 

were illicit spirits and 6,300 narcotics. The use of laxpaid ethyl aleohol 

was approved fo~ 2,833 new fannulas representing loods, flavors, and 

medicines while 3,534 formulas and 4,116 samples were examined and 

approved for products and proce~s using denatured alcohol. Labels 

were approved for 7,274 products produced with specially denatured r 

alcohol. 

Legislative Activities
 

General 

The fi&:a1 year was a busy one for the Service in 

the area of tax legislation. Principal activities were 

directed to the proposed Revenue Act of 1962, and to 

the major tax refonn pmgram which is to be snbmitted to Congress after January 1, 1963. In addition, research, study, and a'iSistance were carried on 

regarding particular revenue' measures enacted by 

Congress or still pending. 

The regular and reeurring 

functions in eonnection 

with the Department's legislative program, reports on 

bill~, drafting of legislation, 

and other technical work 

were continued. 

Legislative Program. 

The Service submitted to 

the Assistant Secretary for 

Tax Policy approximately 

• 

~1

\1 

< 

, _f "j, • 

130 items for eonsideration 

in the fonnulation of· the Department's legislative 

_ program. These suggestions dealt principally with 

tax administrative problems, tax loopholes, and L1.X 

inequities. They were developed (rom iterns submitted by offices throughout the Service; from research and study projects undertaken to develop 

infonnation about tax administrative problems, 

abuse'l, and inequities which seem to warrant eor~

rective legislation; from sugg~tions made by Memi:?ers of Congress and the public; and from employee 

suggestions forwarded through the incentive awards 

program. 

Therc was a marked increase in activity in the 

Technical Coordination Program. It is throngh . 

this program that the field offices report 011 actual 

taxpayer cases involving tax abnses, inequities, and 

Report on Operations 63 

6:iilQQ4 Q.---(I2~

...., 0;':'"y' •.. 
64 Annual Report 65 

~dmjnistrative problems. These reports are studied and evaluated ,t~

detennining what legislative suggestions the Service iliotild make to the 

Department. The number received duriug the year increased approximately 70 percent over· 1961. 

Legislative Assistance 

The President in his tax message to the Cougre.<=s on April 20, 1961, 

recommended the enactment of a tax program direeted toward stimulating economic reeovery, removal of tax advantages of American overseas 

investments, and removal of defects in the income tax structure. The 

Service assisted the Department in· developing the Administration's t'!.x 

program. Abo. repre5entatives of the Service attended both'the pubHc 

hearin~ and executive seS;iOIlS before the House Committee on Ways and 

Meaus. Subsequent to such hearings the Service assisted in drafting a 

bill (H.R. 10650) to C<lfTy out the decisions of the Committee with regard 

to the President's recommendations and the Committee report accompanying the bill. 

The House passed H.R. 10650 on March 29, 1962. This is a com­ t plex bill covering a great many items recommended by the President in 

modified form. The more important sections provide for a tax incen~

tive credit to encourage modernization and expansion; withholding tax' 

on dividends and interest; more equitable taxation of mutual thrift insti· 

tutions, mutual caiualty insurance companies, and cooperatives; and 

thc removal of much of the preferential'treatmeut accorded foreign 

income. The Rcvenue Act of 1962, as pass~d by t~e House of Reprew 

sentatives, was referred to the Scnatc Committee on Finance. Revenue 

Ser.rice representatives attcnded the extensive public heari~gs which the 

Committee on Finance held during April, May, and June, and prepared 

summaries of the testimony for use of the Sccretary and other Trcasury 

and Ser.rice officials. Additional hearings will be held prior to action 

on the bill by the Committee and the Senate. 

The Ser.ricc assisted the Treasury Department in developing the major 

tax refonn program which thc President plans to send to the Congre.'i.i 

after January 1, 196~~ Work on this· program included research, technical analyses,' and the gathering of inf~rmaLion regarding tax matters 

covcred by sections of the Internal Revcnue Code which are under 

consideration. 

Representatives of the Ser.rice attendcd public hearings and executive 

sessions of Congressional Committees on the enacted and pending legislation listed below. They also rendered other technical assistance in 

drafting the legislation and related Committee reports. 

Information reports, techuical reports, drafts of biil.s and accompanying technical explaIJations, and other data relating to legislative matters 

.... , ...l.

Report on Operations 

were prepared for the Office of the Secretary of the Treasury. Included 

were 61 foiinal reports on Congressional bills which dealt with proposals 

to amend the Internal Revenue Code, the Bankruptey Aet, the So;ciai 

Security Act, the Customs laws, the Federal Firearms Act, the Federal 

Alcohol Administration 'Act, the Administrative Procedure Act, and 

other legisla~ive matter.i, ineluding private relief bills. 

. Legislation Enacted 

Congress enacted a number of pubhc laws relating to tax matters, the 

more important of which are l,isteci below: 

Public Law 87-109 provides that certain membership organizations may spread prepaid membership dues ratably over the period 

during which there is a liability to perfoml services, but not more 

than 36 months. 

Publie Law 87-312 provides liberalized depletion allowanees 

for open taxable years beginning before January I, -1961, at the 

election of the taxpayer, for brick and tile clay, fire clay, or shale 

which taxpayer mined and used in manufacturing building or 

paving brick, drainage and roofing tile, and kindred products. 

Public Law 87-321 provides liberalizeq depletion allowances for 

open taxable yean; beginniug before January 1, 1961, at the elec_ 

tion of the taxpayer, for quartzite and clay used in the production 

<;>f refractory products. 

. Public Law 87-370 extends to employees of pubhe educational 

institutions the benefits of section 403 (b) of the Internal Revenue 

Code relating to employee annuities. 

Public Law 87-397 provides for the assignment of identifying 

numbers to taxpayers. ' 

Public Law 87-403 provides for special tax treatm~nt of stock 

distributions required in anti-trnst eases (relating to the distribution by E. I. Dupont de Nemours and Company of its General 

Motors stock) . 

Public Law 87-426 provides special' tax treatment of losses suffered by property owners in certain disaster areas so that they may 

deduct the loss in their income tax returns for the taxable year 

precediug die year in which the 1O&"i occurred. 

Public Law 87-508 .is the Tax Rate Extensiou Act of 1962 which 

in general postpones umil July. 1, 1963, rednetions in the corporation income tax rate and certain excise tax rates which would have 

become effective on July 1, 1962. The Act, however, tenninates the 

!ax on transportatiou of pen;ons (except transportation by air) with 

respect to transportation beginuing after November 15, 1962, and 

provides for cominuance of the. tax on transportation by air at a 
66 Annual Report 

5-percent rale from November 16, 1962, through June 30, 1963, 

when the tax is to terminate. The, Act provides a new defiuition 

of "wire mileage ,service" and provides a new exemption from tax 

on amounts paid on or after January 1, 1963 for certain private 

telephone or rac!io telephone scrvice. 

On September 13, 1961, S. 1653 (87th Cong.) was enacted to prohibit 

travel or .trauspOitation in eommerce in aid of racketeer ellurprises, ineluding businesses involving liquor on which the federal excise tax has 

not been paid. Authority over investigation of violations of the Act 

involving liquor was vested in the Secretary of the Treasury, and such 

authority has been delegated to the Alc?hol and Tobacco Tax Division 

of the Internal Revenue Service (P.L. 87-228). 

Effective October 3, 196'1, the Federal Firearms Act was amended 

by the enactment of S. 1750 (87th Coug.) to bar persoILS who are under 

indictment for, or who have been convicted of, crimes involving imprisonment for a tcrm exceeding one year, from transporting, shipping, or 

receiving firearms in inte~tate or foreign commerce (P.L. 87-342). 

Legislation Pending 

Some of the more important t?--'C billi (other than the proposed Revenue 

Aet of 1962) which had been passed by the H,ouse at the end of the fiscal 

year and awaiting Senate action were: 

H.R. 10, the Sell-Employed Individuals Tax Retirement Act., 

H.R. 2244, relating to allowance of deduetions of up to 30 percent 

of adjusted grffi'i ineome for eontributions to a charitable organization whose sole purpose is making distrib~tionsto other organizatiolls 

contributions to which are deductible up to 30 percent of adjusted 

gross lOeome. 

H.R. 1961, relating to the priority of liens in bankruptcy. 

H.R. ,4473, relating to the priority'aud uondischargeability of 

taxes in bankruptcy. 

H.R. 6371, relating to increase in the retiremeut income credit. 

Legislative lmpltl.mentations 

The Service developed and proceeded to carry out plans for the implementation of tax legislation enacted during the year. These pIaus ineluded the issuance of new or amendatory regulations, revisiou of tax 

_	 retumforms and instructions, issuance of publicity primarily through news 

and technical infonnation r~leases, revision of Ser,rice publieations, aud 

issuance of special instructions and procedure~ to field offices. 

,.;j .	 ."u 

,]
 

t 

, 

'i 

Report on Operations 67 

'In some instances immediate action, particularly publicity, was required to assist taxpayers to eomply with requirements of legislative 

amen~ments or to take advantage of tax r~lief afforded. For example, 

Public Law 87-426, enacted on March 31, 1962, provided that casualty 

lffi'ies suffered by taxpayerx, after the beginn,ing of the year but before 

the date for filing the prior year's income tax return, in areas detemlined 

by the President to warrant disaster assistance, could be deducted on the 

prior year's tax return This legislation, although enacted as a pe'rmanent 

provision to be applicable to future years, was initiated primarily 10 grant 

tax relief to taxpa.yers. who $uffered casualty losses from floods, high tides, • 

and severe stonns occuning in the first three months of 1962. Since there 

'was a very limited amount of ti!TIe between the date of enaetment of the 

law (Mareh 31, 1962) and the oeadline for filing the 1961 income tax 

return (Apri116, l~62) on which many taxpayers would be entitled to 

claim the benefits of the new law, the SeJi/ice made determined efforts to 

get nece&Sary infonnation and assistance to affected taxpayers almost 

immediately after the law's enactment. A news release (IR-477) and 

a technical information release (TIR-376) were issued on April 5, 1962. 

A special reprint of the Service's circular, How the Fedemllncome Tax 

Applies to Storms, Floods, Hurricanes, Other Disasters, and Thefts, 

which included an explanation of the new law, was issued on April 6, 

1962. . 

Some of the more important publicity releases on other tax legislation 

inelude: 

TIR-332 (August 11, 1961) calling attention to the liberalized 

treatment provided by Public Law 87-109 for prepaid membership 

dues of certain membership organizations and pointing out that an 

election must be filed by a specified date. 

TIR-340 (Oetober 9, 1961) setting out the effect that the 

ipcreases provided by Public Law 87-139 in the mileage and subsistence allowances for Government employees have on the reportiug 

and substantiation requirements for income tax purposes of traveling 

and other business e~penses o(employees. , 

TIR-342 (October 16, 1961) directing attention to the deadline 

for electing to,apply the provisions of Public Law 87-312 (relating 

to the computation of depletion on certain elays and shale). 

TIR-356 (January 4, 1962) djrecting attention to the deadline 

{or electing to apply the provisions of Public Law 87-321 (relating
 

'to computation of depletion au quartzite and clay used in the pro­


duction of refractory products).
 
68 Annual Report , 

CASE DISPOSALS BY OFFICE
 

OF THE CHIEF COUNSEL
 

Collection ITn 

litll,lion court 

I ()n:! 

Alcohol ",

tobacco 

~.

Enlorce- I Refund I Other 

ment 

Iillglliion 

~<\<C,l.:l\'*L"(, 'W;Z • ";'1'':: 

:'
 

,
 

I
 

Legal Activities 

Caseload Disposal Activity 

The total caseload disposals in the Office of the 

Chief Counsel declined to 25,156 from the total of 

26,833 disposals in 1961. At the close of the year 

the total caseload pending was 21,907, a decline of 

576. The principal reason for the decline was that 

the disposal of	 Tax Court caSes exceeded receipts, 

partly due to the effect of 

Revenue Procedure 60-18. 

Civil Litigation 

The Government won 

five of the seven ci".-jJ tax 

cases decided by the Supreme Court, compared 

with eight of ten in 1961. 

The Government also won, 

in whole or in part, 301 of 

the 414 civil tax cases decided by Courts of Appeal 

(exclusive of bankruptcy, 

receivership, insolvency, lien, compromise, and 

liquor), compared with 193 of 261 such cases decided in 1961. In '1962 the Government's position was wholly or partially sustained in 73 percent 

of Courts of Appeal cases, compared with 74 percent 

in 1961. 

In the trial courts (Tax Court, Court of Claims, 

and U.S. district courts) the reeoro of Government 

wins, losses, and partial wins appears as follows: 

R.port 011 Op.ra/iolls 69 
70 Atlnt/al Report 

Trial CDurt e&.Be... won, 108t, or partially won hr the GovernlDent 

Ta. Court CQ~rt Ql C,.,m~ I O"l,,"l ca~rt. Action _ 

-----------------1-'-%-'---'%-'---"-"- --'%_'- -'-%-'-1-'-%-'­

Wen ••_••• _ number__ 275 .313 l7 17 1~21 ". 

Losl .. do • 93 108 II 24 21J jgZ 

Partially WOO • ••• do__ 163 159 6 5 U :Ii 

Perce"t ...on or partially woo__ _ percenL. 82 '81 ~9 48 53 ~2

, R"~is.".

Taxes in Litigation 

Both at the beginning of the fiscal year and at the end there were 

nearly $1.5 billion involved in cases wherein taxpayers oought to contest 

their liabilities for taxes' (and penalties). Aetions for rdunds of taxes 

and penaltie..<; are handled at the National Office level and actions for 

redetermination of pl'Oposed deficiencies in the Tax Court are handled 

by the 9 regional counsels. 

In the trial or settlement of cases in the Federal district courts, the 

Court of Claims and the Tax Court, $68 million was sueee&Sfully defended in reful).d suits and nearly $221 million 'was succe&'>fully defended 

as proposed deficiency assessments, for a total of $289 million of revenue 

saved for the Government (see the table below) : 

TaJ;es in litigation 

(In lhousand. of doll...1 

Tn Court 

Slatu" ralll R","nd 

liligation 

Deficienti.. a,orpayment. 

Pending July L _ Received ._ ..••••_. _. __ •.• Dlsp~ed oL•.••••••••••••••.•••_ Pending June 30 __••• _ ._ •••••••••••••••• Amount saved __ . __ ••••••••••.. _ 

1,409,397 

449.227 

411, ns 

1. 446, 898 

288, SSIl 

'/66. 21~

305,m 

2Sl,m 

810, ~16

167, UI 

195,080 

57,338 

56.1337 

19~.581

53,494 

448,041 

B6,054 

91,315 

440,780 

S8,015 

, R••i.ed. 

Personnel 

On June 30, 1962, the Office of the Chief Counsel had a total employment of 1,30+ persons, composed of 655 attorneys and 649 nonattorney employees. This represented a substantial increase mstaff 

over the preceding fiseal year. The 655 attorneys were assigned to the 

Natiomil Office and regions, as follows: c • 

I' 

• <.'

I~~ !iliten _' y, .. :: " 

Report 071 Operations 71 

N"".b.. Djallar.

Olfie. "'V' 

National office. 261 

Atlanta region. 41 

Boswn region. 23 

Chicago region. 44 

Cincinnati region. 46 

Dallas. region. 32 

New York City region .. 62 

Omaha region .. 36 

Philadelphia n:gion , _ 48 

San Francisco region, . 62 

Tort Claims 

The Service adjudieates all administrative claims under the Federal 

Tort Claims Act arising out of neg-ligent acts of Service employees, and 

assists the Departmeut of Justice in the defense of suits brought under 

that Act for damages caused by the negligence of SeIVice employees. 

During the year 48 administrative clainl.'; and 14 suits were disposed of. 

The Federal Tort Claims Act was amended on September 21, 1961 

(effective March 21, 1962), by Publie Law 87-258 to make that Act 

the exclusive remedy for damage to property or for personal injuries, in· 

cluding- death, resultiug from the operation of a motor vehicle by a Federal employee where the Auorncy General certifies that the employee 

was acting within the seope of his office of employment. 

'"", 

I 

II 
, 

, 

, 

Management Activities 

I General 

Progress of the Service in this area throughout the 

past year was directed towards achieving the high­ , est possible standards of integrity, raising the level 

of competence of employees, extending and improving serviee to taxpayers, and fostering greater taxpayer ,compliance. All of 

these objectives are linked 

closely to the fundamental 

responsibility of the Service to improve and 

strengthen our self-assessment system of taxation. 

Major Administra~

tive Improvements 

BENEFITS FROM MANAGEMENT IMPROVEMENTS. 

-The progressive management- environment of 

the Service and the vigor 

of leadership exercised by its executives and supervisors at all ,levels of organization, is refleeted in part 

by results achieved through the Management 1mprov~ment Program during the year. Although 

totai tangible recurring savings of nearly $5 million 

were specifically identified, the large majority of 

benefits were of an intangible nature. Regardless 

of the category, the important fact is that management actions have had the net effect of strengthening thc enforcement effort, reducing backlogs of 

work, improving taxpayer service, and otherwise 

contributing to the successful attainment of the 

Service mi1'.'iion. Numerous examples of specific 

management improvement actions and benefits are 

described throughout this report. 

R'PDTI Dn Op'ratiDn3 78 
----

74 75 " Annual Report Report on Operations 

ORGANIZATIONAL CHA.....CES·IN THE NATIONAL OFFlCE.---Dn Septem­ unifonn interview methods and standards were developed for use by 

ber 19, 1961, less than a year following its establisl1ment as a separate Boards of U.S. Civil Serviee examiners: 

division, the Automatic Data Proce:'iSing Division was converted into the About 80,000 college recruiting brochures were mailed to students 00 

Office of Assistant Commissioner (Data Processing)., Thb new office campus and distributed by college placement officers and Service reeruitwas assigned responsibility for the implementation and operation of the ers. 1n an evaluation of recruitment brochures conducted by the College 

automatic data processing sy~tem and the closely related retums process­ Placement Council, those of the Service were ranked among the 15 best 

ing, revenne accounting, and service center operations. The Junctions sets in the country, the only Federal materials so honored.· A gnidance 

of the Reports Division formerly attached to the Office of Assistant Com­ booklet, "Careers in Tax Work," was developed and distribnted through 

missioner (Administration) also came under the jurisdiction of the new the "Teaching Taxes" conrse, to high school counsellors, libraries, and 

Assistant Commissioner (Data Processing). other sources of student gnidance infonnation. The booklet advises stuAt the same time, the Assistant CommL-.sioner (Operations) was r~­ dents on college preparation, particularly in aceountancy. 

designated as the Assistant Commissioner (Compliance). Employees on the rolls at the dose of the year totaled 56,510 compared 

On December 20, 1961, the Fiscal Management Division was trans­ with 53,680 last ~year. The following table gives a comparison by 

ferred from the Offiee of the Commissioner to the Office of the Assistant principal categories. 

Commissioner (Administration). Personnel Summary 

The 1nternational Tax Relations Division was abolished on May 1, ---,

"'tn·~a~rl realized Numbtr on roll. al clol. 1962, and the Foreign Tax Assistance Staff was established in the Office III yeur 

of the Commissioner. localioa lad 'JP. 

"" ,~, ,~, Ig~ I 

RP;PORTS PROGRAM REFLECTS MODERN MANAGEMENT.-With atten­

«, 0' '" 0' tion at all levels focused on" improving the qU:aIity and reducing the cost -_. 

S.rvice, totaL __._. 56,4BI 53.200 56.510 53.680 

to obtain more meaningful information and at the' same time to redirect 

of reports, the Service redesigned several major reporting requirements 

c,__ 373 "mllOr,'y ••••••••_. ~e'm.nenl .. __ •••••••_ _ 50.663 51. ~28 51.411 "_'_"'_'.1= '.5lI2 2.209

manpower worth over $1.4 million from the preparation and mc of 3.109 ~3 NationaIOIfj'e............... _
 , 3,4al 3,357 3.031

reports to essential operations. 1n the proce&'>, 676 reporting require­ field lervic•• lolal' :::__ ..••.•::::::::::••••.••• 53, 080 '55:Y~i 53,153 50.649

ments were eliminated and 190 were modified. Collection. total .... .............. 24,466
 24.le7 23,994 23,625

5.76g 

DIner •__ .•. _ _ ••••••••••. ._._­ Rov""u" olfjeers.. _••••",__ -.......... "'"
 The Service ha~ designed its Reports Program to be fully responsive to 5.66S • lB, 43~ &.~A • 17, &57 IS.55Z 

the benefits of mechanized and electronic applications, while keeping in Audil, total..._. .• ••••• .............. IS. 599
 15,492

mind the advantages of manual processes for some types of reporting. Reyenue alenll.. _ . ••• ...........- 11.859
 10.798 Ollie. audilo,s__ .... __ .•.•••••••_••• __ . 3.052 2,545 Olher ••. _•••••••••••••• •••••••••••• ].GSS 3.149 Personnel· == Inlallilenco. totol..••••.••••••• _._ 2.160 • 1.949

18.987 17, '&I 

II.!l42 

~:gn

11, '89 

2.557 

3.33S 

2,201 2.079 

The per.,;onnel administration program continued to respond to the Speo;:il' .l.ntl.•.•.••_••••••... U~ 1,624 I. 55a OIh.1... ••• _. ..•.••.••. •••• __ • _____ 1 '.,

""

. m needs of manazement and employees. for better use of manpower, more 1-= -

'" '" Alcohol and loblcco In. total. __ ••••••. 2, SI9 Z.87S 2,86' ',"" == 

effective eommunications, and assistance in carrying through organiza­ ----I ._..... _.... tional and program ehanges with efficiency and high morale. Major :~;~fo·~~~:::::::::..::::::::::::': ,_._."_ m 

". ". «' '"

m 

Slo,ekeapa"IllUl''''_ _ •• _•• _•. '" I' Other , ••.••••••• _ -_.-.-.--1 •• "'"

. ., area~ of attention ioc1udedrecruitment; data processing staffing and I, '" '" , '" Appell.le, tolal •••••••••. _ '"' '"' redeployment; occupational standards studies; and notewOlihy advauces -------1 I; 399 I. 3~9 1.4l0 1.392 

, in employee-management ,relations, including preparation for' more Tecr,oical.dvisar,__ •• •••••••.••. _ Audlto" ..•..•••••• •••••..• ._._ .., ." ... OIhe,.. .••.• ••••••. •.••••• ." '" '" ..'"

, ." '" formalized dealings with organized gronps under the President's Execu­ '" tive Order 10988. ..,.. 2, 

'"181 2,210 ::~~~~~'tJ~onn."i::::::.:::::::::::~::::::::::::::::::'I 2·m 

Rp;cRurrMENT.-The Service expanded Relio.al inspecl,on. •.•••'. ,._••• .• it5 recruitment of experienced '"m '" '"

«' '" "' accountants for revenne agent positions at G-?-9 and GS-ll levels. As 

'I'dud.' lerminall",ve m.n-~••" I'" <nlire Service. , 'n,lud" Office 0' Intarn.lionol Opor.I' . in previous years, however, chief elophasis was given to recruiting college • rnd"d.. "umbe, or .e",ice ,onle' employ on roll. in Admini"'rolion, .nd ",..-y.ars de-.led 1o Adml.,......!,,". gradqates for entqlOce-Ievel profes.~ionaI positions. To assure mainte­ Audil .nd SliU,li", in t~a .a,.i,. cenlers by employ••• relularl~ a..i~ned 10 p'O,"",nl ond revenue oceoum,ol rU""'ons. 

Al,o i'ntludel mao·year. lor "ul.molic dal~ proce>l"inance of quality ,'Revl.ed 10 i",hlde Ii......'n.... prev,eu.II'~o","'.f>;:lralely. in rhe decentralized recrnitment program, nationwide • Includ"" over.u. omplol." hi'ed locolly ( In 1!ll".2 ••d 4 in 1961). 

... ",.....7h i

,;,· 
76 Anuual Report 77 

AUTOMATIC _DATA PROCESSING STAFFING AND REDEPLOYMENT.---On 

July 14, 1961, the Civil Service Commhsion authorized special per~

somlel procedures to facilitate the conversion to automatic data proc· 

essing. These procedures are designed to redeploy employees affected 

by the eonversion and avoid layoffs and other adverse personnel actions 

which otherwise might become necessary. 

Progn;ss was made in staffing the National Computer Center at 

Martinsburg, West Virginia. By June 1962 there were. 53 employees 

at the Center, 32 recruited within the Service and 21 from other Government agencies and private enterprise. 

EMPLOYEE MANAGEMENT RELATIONs.-Empha.sis was placed on 

strengthening employee-managemept relations and relationships with 

organized employee groups. This resulted in: (1) new Service policy 

and procedures on employee-management cooperation" grievances, adverse actions, and appeals; (2) increased participation in national and 

district conferences between organized employee groups and management representatives to explore proposed policies and procedures affect· 

ing' employees; (3) improvcd performance evaluation techniqnes; and 

(4) an im-proved Incentive Awards Program. ' 

Procedures in the Incentive Awards Program were streamlined by 

authorizing field offiees to process most suggestions even though national 

in scope, and to act on certain appeals arising from disapproved suggestions. "Quality" standards in' program promotion as opposed to the 

"quantity" approach of fonner years resulted in fewer suggestions and 

fewer adoptions, 'with a marked increase in the amount 'of estimated 

tangible savings. 

SUMMER STUDENT ASSISTANT PROGRAM.-The Service inangurated 

an experimental summer employmcnt program for well-qnalified college 

st~dents -to encourage them to seek employment with the Service upon 

graduation. Based on faculty recommendations and scholastic records, 

about 75 law antll,mdergraduatc students were selected for work in the 

field and National Office. 

DEPUTY COMMISSIONER HARDING HONORED BY NATIONAL CIVIL 

SERVICE LEAGUE.-Deputy Commissioner Bertrand M. Harding was 

selected by the National Civil Service League as one of the top 10 Federal 

employees in the country. He was the first Revenue employee to receive 

this honor. 

Me. Harding progressed from the bottom to the top of the civil service 

career ladder in less than 20 years. Typical of his contributions to the 

Service are several specific programs and concepts including the "LongRange" planning program, the reorganization of the colleetion ~ctivity,

and the application of automatic data processing to ..he functions of the 

Service. 

Report on OperationsOCCUPATIONAL STANDARDs.-Greater emphasis was given to the concurrent development of classification a"nd qualification standards to more 

closely match skills and experience with job demands. A notable example is the new career program for tax technicians in office audit. On 

-the basis of studies initiated to strengthen voluntary compliance, it was 

dctermined that the office audit area of tax administration requires broad 

audit coverage, quality examinations, and special competence in contacts with taxpayers. New classification and qualification standards 

were accordingly developed to insure staffing by employees with requisite 

analytical and public contact skills. 

EXECUTIVE SELECTION PROGRAM.-For several years the Service has 

had a well-developed fonnal management development program at executive levels, which has been extended to supervisory and middle-management levels. All assistant district director positions and other positions 

of eomparable rank are filled by graduates of the Executive Development course. This year, for the first time, consideration was also 

given to a number of qualified people from other agencies, referred to the 

Service througq the Civil Service Commission. Of the total- of 787,applicants, 20 were ultimately selected for the program, including one from 

outside the Service. 

ATTITUDE SURVEY.-Last September a pilot employee attirude survey 

was testcd in the Philadelphia District Office. The survey revealed that 

employees havc a strong dedication to their work and confidene~ in the 

Service's management and leadership, and a;lso uncovered apparent 

failures in communication in certain areas which are being corrected. 

EQUAL EMPLOYMENT OPPORTUNITY PR~GRAM.-The Service continued its efforts during the year to assure that qualified minority group 

members are considered for appointments, promotions, and training 

opportunities at all levels in the Service. 

The Service has made over 100 middle and high level appointments 

and promoti'ons (GS-5 and above) to Negroes. For the first time in 

history Internal Revenue has two Negroes in GS-15 positions. Aside 

from its progress in areas outside the South, the Servi.ce has 'made appointments to the GS-5 level or above to Negroes in Atlanta, Ga.; 

Louisville, Ky.; and New Orleans, 'La. A Negro office auditor has 

been hired in Austin, Tex. and the first Negro clerk was named in 

Oklahoma City. In Atlanta, Ga., where no Negro had previously 

served in any white collar position, eight Negro card pnnch operators 

have already been hired. 

Training 

Training programs were expanded to insnre smooth conversion to 

automatic data processing. Additional seminars were held to familiarize 

iti~~, -'"
 
78 Annual Report 

management personJ'lcl with the plan; '">1 employees were trained as 

digital eomputer programmers; prog.-ams werc developed and conducted 

for employees of the pilot regional service ,center in t\t!anta; and guidelines were i~ued to field offices fOT retraining employees whose jobs will 

be eliminated or changed. The growing number oJ user.> of automatiC 

data processing equipment in private industry also led lo increased 

emphasis on training enforcement personnel in techniques of examining 

the returns of such USCni. Finally, a program was developed for training 

auditor.> of the Inspection Service in conducting audits of the automatic 

data processing Service centers. 

Fiscal year 1962 marked the first full year of management training 

under the new Managemcn~ Development Program. Sixteen executives 

completed the II-week executive eour~e; 125 managen; completed the 

5-week manageIi.al course; and 690 supervisors completed the 2-weck 

supervisory course. In addition, in a specially designed centralized 

2-week eOUnie, 27 regional analysts received training .n the techniques of 

management analysis and coordination. 

In July of 1961 the first National Office Administrative Intern Program began. Under a training agreement with the Civil Service Commis;ion the program provides for developing top quality administrative 

teehnieians with high potential. The program has prO\'ed highly successful and steps were taken to provide for regional participation. 

A Speeial Training Advisory Committee was appointed by the Commissioner in August 1961 to sUf\'ey the entire collection training program 

and develop a comprehensive career training plan for that activity. Its 

report and recommendations are expected to be completed by October I, 

1952. 

A number of new programs were launched to meet Servicewidc training needs tn the audit, colleetion, and alcohol and tobacco tax functions.. 

In addition, the scope of technical field conferences on income tax and 

specialized tax arc.1.S was expanded. 

In DeccJ!lber 1961 after an 8-month study of its training responsibilities, a task force concluded that anticipated tr'l.ining demands of the 

sixties could best be mel by establishing national and regional training 

centers; Detailed studies were accordingly set in motion to explore the 

feasibility of such eenters. 

Facilities Management 

SPACE MANAGEMF.NT.-Through close cooperation with the General 

Serviees Administration the Service was succes.sful in olnaining new space 

and improving space conditions in offices throughout the couOlr)'. The 

following offiees ~'ere moved into new bUi.ldings in 1962: Jackson, Miss.; ,.... 

" ...... Report on Operations 79 

I 

I 

I 

i 

I 

i

, 

I 

.., 

1 

"' "

, 

oi 

'"

o 

" 

J 

Ull800<l 0-02__, 
80 81 Annual Report r

',: 

I

CafeUlria 1 

(or Clnp)oyees 

Audit 

Divj"ion 

Offices 

; ----~ ... Interior design of Dew District office building at Springfield, III., oecupied 

June 15, 1962, facilitates tllxpay"'.. "er"iee5 and pro>id",s Ilflrnuiull for im. 

proving eIIlployee work perfonnunoo 

Training 

_m 

TRIpllyer 

Contact 

Unit 

11 

" 

Report on Operations 

Springficld, Ill.; Little Rock, Ark.; Phoenix, Ariz.; -Oklahoma City, 

Okla.; Richmond, Va.; and Houston, Tex. 

Additional space was aequired at 206 locations to relieve erowded 

conditions and to house new employees. . 

A building was also coru;trneted under a lorig-term lease agr~ement at 

Martinsburg, W. Va., to house the National Computer Center. This is 

one of the first b)lildings to be specifically designed for the sole occupancy 

of a Federal installation of this type and was constructed in almOst 

record-breaking time. Invitations to bid were issued on March 7, 1961 

the ground-breaking ceremony was held on June I; a portion of the 

building was occupied on September I; and the entire building was 

completed by Novl"JTlber 1, 1961. The new Center has about 10,000 

square feet of floor area, approxim~telyone-fifth ofwhic.h is specialized in 

construction to house tpe computing;equipment. ' ,­

A building designed and constructed for the Atlanta regional service 

center at Chamblee, Ga:, was eompl,eted and oceupied on June 1, 1962. 

It contains approximately 200,000 square feet of floor area about 5,000 

of which is specialized space for the computer equipment. 

EQUIPMENT PROGRAM.-After 3 years of extensive studies, a longrange equipment replacl"JTlent plan was begun, based on a comprehensive set of furniture and equipment standards which are believed to be 

the first of their kind in the Govemment. Working conditions were 

improved in many areas, especially in the new district offices in Phoenix, 

Ariz., and Riehmond, Va., where taxpayers are now afforded privacy 

during interviews, and employees have equipment tailored to the work 

characteristics of their jobs. Steps were taken to supply enforcement 

personnel with cars and equipment needed to meet acceptable standards 

and to accommodate the enlarged crime detection program. 

RECORDS AND PAPERWORK MANACEMENT.-The Service continued to 

emphasize (1) faster service to taxpayers with better written messages, 

(2) elimination or simplification of paperwork, (3) strict control ,?ver 

proposed new documents, and (1) retention of minimum records and 

reference material. 

The total records holding declined to a newall-time low even though 

over a million more tax returns were filed. Controls applied to reeords 

creation, and the systematic elimination of all reCords eligible for retirement or disposal, released much-needed space and equipment valued at 

$914,550. 

Efforts to improve public-use form letters and standardize all forms 

and form letters at the highest practicable organizational level were 

intensified. The resulting dim-ination of unessential forms and standardization of the remaining forms and form letters decreased the number 

developed by district offices by more than 20 percent, with a correspond­
-----------

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

82 Annual Report 83 

ing increase alless than one percent in regional office lonns and only 11.5 

percent in Jonns prescribed by the National Office. A Selvice-widc net ,~" ,,:'1 

reduction of 2 percent was realized, despite the increase in the fonns inventory attributable to the phased eonversion to data processing, which 

necessitates two slmilar fonns (one ma.p.ual, one machine) for many 

processing operations. 

Fiscal Management 

Expanding operations for 1962 were financed by a Congressional appropriation of $452 miHion, $38.1 million above the 1961 appropriation 

and $17.9 million over 1952. The additional funds over 1961 were used 

mainly to finance the second step of development uncler the Long-Range 

Plan, to inaugurate the Organized Crime Drive, to cover costs of the 

Automatic Data Processing program including the National Computer 

Center, to cover increa~es in travel per diem allowances authorized by 

CongrttS, and to reimburse the Social Security Administration for assignment of taxpayer account nlJmbers. 

Total obligation~ amounted to $450.1 million compared with $413.3 

million in 1961.. 'Man-years realized totaled 56;481 compared with' 

53,206 in J961. Table 28 on page 180 reflects obligations by location 

and type of expenditure. The distribution of expenditures by activity 

is shown below. 

ObllgatioDfl in~urred by the Internal Reyenue Servicc 

[In thousands aI dollars) 

"'cliv;l~

TaI.1 Salari" I Olher I

'"" 1951 '"' ,~, '"' ,~,

413,295

5,545

159,7B3

147,330

20,820 

2B,607 

15.285

\0,734 

',",

3, OJ1

5,567 

3$, 853

5,4lI

153,529

152,921

20,616

24,82\

U,904

10,82(

',,"

2.718

4,665 

345,771

5.759

137.930

127.767

17. (15 Z3. 128

13. G29 

N~2.288

4.129 

53, 'l'l7 

'" 2G,383

12,710

3,373

5.1?2 

'"

'" 1. \55 

'" J.379 

-

--".

'", '","

"

"

"

"

" 

Tol"L _____________________________

IluIinl!. technical planning. and special lech· 

nieal se'vices............................. Collection n' revenU" _______ • ___ • ____________ AUdit of tax relurns..............._......... r u I,aud and special investigations___________ Alcuhul and tobacco lax rel!ulato'~ work....... Taxpayer conter"nces and aopeals _____ Legal s.'v;ces_ ..........:.................. Inspecl'on............._____________________

Statistical reportinl!_ ................._...... Execulive direction......______________ •_____ 

450, 080

179,912 ',"" '165,531

23,9B9

29,943

15, G77

11,751

6, G10

3,455 ',"" 

"' 

,~

, 

"' 

"

,$ 

,$ " " " I Pe,sonnel benefihl are ;ncluded in "Salaries" in 1962, In 1961 these cosh! w.re i"d~d,d in "Olh.,." 

The steady increase in work programs, with the accompal)ying rise
 

in operating costs, makes efficient financial management an ever more
 

important resp;:msibility..Accordingly the Selvice adopted' a number
 I', 

RepoTt 011 OpeTati01IS 

OBLIGATIONS BY ,4CTIV1TY 

Collection of revenue 

Tax fraud and 

special investigations 

Alcohol and tobacco 

taJ regulatory work 

T3Ipayer conferences 

and appeals 

All other* 

Audit of tlll returns 

* Includes rulings, technical planning, and special technical services, 1.6~; Ie· 

gal services, 2.6~: inspection, 1.5~j statistical reporting, D.8~; executive direc· 

ti"ln, 1.3~,_ Fiscal Year 1962 

OBLIGATIONS BY OBJECT
 

OF EXPENDITURE
 

•1. r ¥f *1:W t::& • I 

of new and improved methods and procedures {or financial management 

i,; 
,...iu- ,_ 

84 A1111ual Report

arid related accounting and fiscal work, designed to promote greater 

efficiency and effectiveness in these operations. 

, Fiscal management data proeessing operat~ons were converted to a 

magnetie tape stored-program computer sy~tem. -This system, in addition to payrott, bonds, and related _aetivities, also includes personnel acconnting and a number of reports and data for financial management 

purpo~e;;. Provision was also made in the master record for certain 

information of interest in personneLClper;ltions, looking towards preparation of per:o;onnel management reports'a~partof the integrated computer 

system. 

Proeedures for controlling ~ork perfonned on a reimbursable basis 

for other agencies were strengthened; an orientation pamphlet on financial management, including the major phases of- a budget cycle;, was 

prepared; and refinementc: were made in the development of eost factors 

for projecting travel and materials and faeilities costs for additional 

pel"ionnel. 

Wjth paSlage of the Travel Increase Act in August 1961, the Serviee 

expanded its sliding scale for computation of per diem allowances based 

on lodging costs. ThJs system, which provides appropriate reimbursement to the traveler for out-of-pocket expenses incurred on official travel 

at minimum cost to the Government, has been adopted by a' number of 

other agencies. 

Resources Utilization 

DUling the year the Service plaeed special emphasis on efficiencY'and 

economy, in keeping with the President's call for a lean and fit Federal 

establishment. Specifically, at a Regional CommissLonel"i' conference in 

April 1962 'the Commissioner called for a three-phase program to 

strengthen resourees utilization. Pha~ I, referred to as "belt-tightening," 

and aceomplished in May and June, involved a short-range search for 

positions in the National Office and regional offices which could be 

eliminated or reallocated to direct tax enforeement operations in the field. 

This resulted in the elimination of wme 280 positions originally scheduled 

to"be filled in fiscal year 1962 at an annual cost of 2.4 million dollars. 

PhaSe II is being carried out by a high-level ad hoc Committee on 

Resources Utilization. This committee, comprising both National Office 

and field officials and representatives from Trea_sury and the Bureau of 

the Budget, is expected to complete an examination of the following 

matters by the end of December 1962: ,~

(I) A study of the organization and functions of the National 

Office with the idea of as.certaining whethe'r any operations might be 

.'	 eliminated, re~lgned to a different component or level, or accomplished in a tietter way; 

_,,,,- niiffl'p.,-" 

\
 

Rep,ort 01L Operations 85 

(2) A number of studies affeeting regional and district office 

organization and functions; 

(3) A study of manpower planning and control in selected 

activities; 

.(4) Additional collateral studies to determine how effectivc;:ly 

the Service is using its resources. _ 

Phase III is the implementation of the recommendations which may 

be approved on the basis of Phase II studies. This phase includes follow~

up studies to delineate specific courses of actions within the framework of 

Phase II general conclusions. 

Long-Range Planning 

The Long-Range Plan was updated in the light of improved workload 

projections, cllrrent work performance rates; and new research results to 

provide the' basis for thc 1964 budget request. The Plan comprises 

estimates of the additional manpower and other resources needed in each 

of the years 1963 through 1968 to eliminate operating deficiencies and 

_meet the constant growth in tax administsationworkload. . 

During the past 2 years, substantial progress was made toward the 

long-range objectives 'established in the Plan. The installation of a.n automatic data proee3Sing system is well under way, with service centel"i 

aetivated in the Atlanta and Philadelphia regions and the National Com~

puter Center in operation at Martinsburg. W. Va. Staffing increases in 

the audit area have provided for the initial phases of a program to expand 

tax returns examination capaeity and increase the quality of examinations 

to minimum levels needed to improve voluntary compliance. The investigative efforts aimed at racketeers and other persons suspected of tax 

frauds, have been expanded through the Organized Crime Drive. Additions to the collection staff have enabled the SeJVice to increase the 

number and amount of delinquent aceounts elosed and thus cope with an 

upward trend in the number of accounts becoming delinquent. At the 

same time that these improvements were being made in data processing 

and enforcement areas, steps were taken to promote a better understand­

-ing of the tax laws, regulations, and forms. These actions provided for 

widening ,the dissemination of tax information, expanding the facilities 

,for taxpayer assistance, and making greater use of personarcontacts with 

taxpayers to explain their tax r<,-~ponsioilities.

Systems Review and Coordination 

The objective of this activity is the development of an integrated system 

of tax administration which uses automatic data processing equipment 

effectively and over the greatest possible area yet with fundamental 

awareness of the limitations of the equipment and 'its proper role as a 
86 87 

!

, Annual Report 

supplement to other efforts to achieve the best possible adrninistration of 

t~x laws. This aetivity branches into three main areas of investigation. 

First is a continuing analysis of antomatic data processing, centering 

largely on the m~ter-file concept of ta'K administration, to enhance 

-'- systems efficiency and effectivenes;. Among the important activities in 

this regard are: The deve1op~ent of a taxpayer identifying number 

system; a restudy of the optimum eqnipment configurations to carry out 

the master.file operation; a slndy of the best methods of acquiring the 

equipment, whether lease, pnrchase, or Iea.~ with option to purehase; 

and the further development of techniques and methods for the use of 

information retnms in tax enforeement 

Second is a continuing investigation of technical improvements in the 

automatic data processing system. Among these are: Optic~l character 

recognition to replace manual punching, microfilming of output in lieu 

of paper-listing, the transmission of data between centers by electronic 

means rather than by mannal exchanges of tape, the receipt of data in 

tape form rather thail in the form of reports on paper, and principles of 

auditing the electronic data'systems of taxpayers. These investigations 

are in their very early stages. 

Third is a eontinuing consideration of whether, how, where, and when 

to use automatic data processing eqnipment in activities not yet planned 

{or inclusion'in the automatic data processing system. Among the possibilitie.<; are: The use of criteria recognizable by machine; a5 a first step 

in the selection of returns for a~dit examin'ation; the' nse of automatic 

data processing equipment for snch non-master file activities as statistics, 

mauagement reports, operations research, inventory re~ords of liquor 

in bond. and electronic information retrieval; and the impact of prop<*ed legislation, such as the withholding of income tax on dividends arid 

interest. 

This year saw considerable effort in the first of the above three areas 

and somewhat less in the latter two. It is expected as time goes on there 

will be a shift of emphasis in this activity from a re-examination of the 

developed plan toward the technieal improvem~nt and the expansion of 

the coverage 6f automatic data proees.'ling in tax administration. 

Current J.lesearch Program 

The trend toward greater research aettvlt)· reported in the past two 

years has continued with emphasis on the needs of the legislative program. This program generated new studies and exteuded those already 

under way, particularly statistical iuquiries Iilnd sUT"eys. 

One of the major statistical snrveys iuitiated will provide a comprehensive traciug of transfers, as shown on esrate aud gift tax returns, to 

determine' the e~tent of generation skipping through the use of both 

Report on OperationJ 

testamentary and inter vivo! trusts. The. patterns of charitable deductions and interspousal transfers will also be analyzed. Another basie 

survey concerns the patterns of percentage depletion and related deductions, and the extent of variations resulting from different rate; and diffcrenttreatment accorded various mineral products uuder the l:.:tw. 

The earlier surveys relative to intere;t and dividend reporting were 

continued for the purposes of updating and expanding the scope of the 

information obtained. Other projects focused on the collection of information on specific income and deduction items, both personal and business, reported on individual returt1.5. Studies of the administrative 

feasibility of proposed legislation were also conducted. '0­

Several studies were made of the operations of the existing law to identify sources of administrath·e problems and develop the basis for 

improvements. The IJ!.ost important concerned underreporting by vari· 

ous classes of taxpayers. Considerable attention was also given to the 

characteristics and current operations of pension and profit-sharing plans. 

On the basis of a comprehensive study of existing Service requirements 

and practices of other agencies, recommendations were made for substantial simplification in th~ usc of powers of attorney by taxpaver 

representatives. 

Inspection Activities 

Inspection's mission is to provide for an independent review aud appraisal of the effectivenr.ssand efficieney of SCivice operations (I~ternal

Audit) as wcll as an iuternal investigative force geared to assure maintenance of the highe;t standards of employee int~grity (Internal Security). 

Both Internal Audit and Internal Security are an outgrowth of Government-wide internal eouJrol requirements that have been established by 

law and executive direction. . 

Inspection is a fact-finding organization. It has no direct re.<;ponsibility for.or authority over employees inCthe operating aetivities of the 

Service. Inspeetion reports facts developed by Internal Audit and 

Internal Security activities to appropriate management officials, who are 

. charged with responsibility for taking action. ~ince Inspection is responsible for reviewing and appraising all Selvice activities, aetions or 

lack of appropriate actions on Inspectiou's findings are reviewed and 

reported to higher management level", wheu uecessary. Major issues or 

areas of disagreement which are not resolved at the proper levels of 

anthority are referred to uational officials for decisiou. 

This program has pla}:ed an increasiugly important role iu fosteriug 

a "Blue Ribbon" coueept of the Service iii the eyes of Cougress, the public, and Service employees. 

l 
------

---------

88 Annual Report

INTERNAL AUDlT.-The internal andit program provide; for an annual 

iudependent review and appraisal of Service operations as a protective 

aud constructive service La the Commissioner and all other levels of man~

agement. This broad program covers all field organizations and activities of the Revenue Scn;ice and includes a determination as to whether 

the policies, practices, procedures, and COntrol.., adequately proteet the 

revenue and are being effieientJy and effectively camed out. Additional 

audit responsibilities hav,c recently resnlted from the adoption of automatic data proc~ing.L At present this involves the Service's computer 

center and 4 service centers, which utilize high-speed eleetronic computers and related peripheral equipment. Emphasis in Intcrnal Audit 

is placed on the examination of the Servicc (nnction::; which are most 

closely connected with the collection of the revenue.~ and enforcement of 

the tax laws, and in coordination with Internal Security in carrying out 

the integrity programs of the Service. 

During the year 303 internal audit repolts were issued ,compared' with 

253in1961. ' 

In addition, Il)ternai Audit carried out a number of special a.s.'1ign~

ments including 'participation in the Trea:sury Department's annual 

inspection program and the a~nual audits of the Exchange Stabilization 

Fund, as well as a comprehensive survey of the Tax Division of the Virgin 

Islands Department of Finance, whieh resulted in a reorganization to 

improve the effectiveness of .the enforcement and administration 

functions. 

INTERNAL SECURITY.-Under the "New Direction" the year 1962 

marked one of the most intensive program<; in the history of the Service, 

to insure the integrity of its employees. The Service investigated allega~

tions of corruption or attempted corruption of its employees by nonService persons and also investigated chargcs of nnethical or corrupt 

praetiees on ~he part of enrolled practitioners. 

In the administration of the voluntary self-assessment system of tax~

ation, the Service is largely dependent on integrity of taxpayers and 

their representatives. These pcr~ms in tnrn have the right to demand 

,the utmost integrity and impartiality among official" and employees of 

the Selvice. During the year top officials made vigorous efforts to pro­

,·mote understanding among emplo;\-'ee.s, taxpayers, and praetitioners as 

to the importance of integrity and the need to expose corruption wher~

ev~r discovered. Th~e efforts included a series of meet.ings with tax 

practitioner groups, These meetings indicated a resurgence of interest 

by the tax profession in the matter of ethical standards of practiee and 

are expected to remit in revitalization and tightening of codes of ethies 

among professional groups. Dnring this fiscal year Inspection assumed

• 

.,hL.,·, ., ). '"Jl,J;:.\~~~

Report on Operations '- 89 

primary responsibility for the investigation of attempts to bribe Service 

employees. Instructions were issued to strengthen procedures to be fol~

lowed by employecs when a bribe offer or overture is made. 

During the year 50 cases of 'actual or suspected bribe attempts by 

taxpayers or their representatives were reported by Service employees. 

Nineteen of th~e cases were closed and resulted in initiation of proseeu~

tion of 10 taxpayers or their representatives. Additional prosecutions 

are contemplated in a number of cases pending investigation. Among 

the prosecution cases was one mwhich the· bribe offered was only $20 

and another in which a $10,000 bribe was offered. In the latter caSe 

a Service official, a taxpayer, and two practitioners received sentences of 

imprisonment and fines aggregating 9 years and $15,000. 

A total of 8,956 investigations were compIeted;-which was 23 percent 

more than in· the preceding fiscal year, and the highest on record. In 

addition, police checks were made on 3,955 employee.<; given short~tenn

temporary appointments, 

A tabulation of the various types of investigation.<; and di&:iplinary 

actions follows: 

Personnel in~~stiSlllions, other in,.-esHglltions, and disciplinary a<:tion15 

Type Of in~elligalion and aclion ,%, 1961 

r 0111 inv..liillion. olo.ed.._.• 8.956 7.1.38 

Personnel inv..tigalion; Numb~r <PI tlIs., clCllled, IntaL.• __ ._. • • . • • • _ 7,701 6.032 

Conductln~eslig.lion,._

C~"~cter and "lcurily investigations 

.• . .• .• .•

• __ . •• .___ 

_ __ • __ • • ••._ 

__ I~665 569 

Spe<:lal inquir'e•. -----.- ---- :._. 2,019 1,511 

A~ions lakon a. a rOlull 01 pO''''on.l in_esl;llllions =1=

Oilciplina!)' a~ion•• Iolal..•.• •• • _c . _ • .•_ _ ._ .•,~I 660 

S~p'rationl. 101111 • __ . • .•• ._. ._. • • ---,-,-, no 

Bribery, extortion, or cOllusion __ ._. .•• .. . • ._ 5 7 

Embe.zz emenl or Iheft 01 Go_ernmenl fund' Or property •.. • • •• __ 15 21 Failure of employee 10 pay proper tax. • ••• •• ._ 15 14 

F'l.ifioation or dislortion of Governmenl ,eport.. 'ecord•. 010.•. .• 69 10) Unauthoriled "ul.ideacllvily . .•• • • .• .• 6 12 Failu'e 10 discharge dulies prope,ly___ _ •• •• •. •• • .. U 1 Refusal !(1.'oope'alo ,._.• .• __.--- _. __ ._. • ._. __ .. • .. I DIVUlgence 01 ooofidenhalmlormatlon __ • .•• ._. __ .• ._._ 2 4 Acc.plance of fees Or grat"il,es • __ .• • __ .•• •.• __ .•__ 4 6 P."onaland olher misconduct ._. __ • .• . •• .• B) 53 SusP.o"on. from dnty and pay_ •. . • •• • __ . . .__ 45 

N ~.primand•• warn,ogs. r....ignmenls. tr.nsfe,s, Or demollon • •• • __ . , ~~ I 387 ondISClplinoryachon, .... • • __ .• • • ._ 5.3/2 

Olher invesllll31ion. Numbe' 01 case, ,Io'.d. tolll . _. _.. . •••. • ._ 1,255 1,2!i1l 

~~~:~:sti~;:i~~: :~;';,il~:~~ .I~.~:~~~~o _b_~f~~~ _1_"-".~~~~~n_~I_ ~:~~~~~. ~~~:j-,-": ::::::: 647 1.080 98 21 15l 139 Fe"e,.! lort <I.im•..• .•.... ••.. __ . __ ..•.. .••••.. ..••. ._ 

~:~~~1~~t?~~~~~~:· ::: -. ---:::..:::::::::.::::::::::::-----.--. ---. -------.- " , Invesligations!OI olhlr Tr."uIY bUIIIU" , " '" 

\ InclUde. '.'ignal"",, fltiremenl., Of olhll '.P."tiO"' ....nile "01pI01.01 .....f. undor inv..ligalion 0' b.lore .dmini• .Iral;•• deci,l'. w" m,o.,n oisc.ipl,o"y l<lIon ....~.'e ,M"lii.llon d'I<:I",.d derog'lo!)' inform.lIon. 'Nol incl.d.d ••••p.,.le ill.. '0 pr••,ou. 'euol1•. 
91 

,jl! 

90 Annual Reporl

Enrollme'!'t ofPractitioners and Disciplinary Actions 

GE1"ERAL.-During the year the Office 'of Director of Practice commenced a period of revitalization of its enrollment and disciplinary Cunetiam. Increased productivity, generated by more adequate staffing and 

better utilization of personnel, is reRected in the statislicsset forth below. 

More disciplinary actioT15 were concluded, either by resignations, suspensions, or reprimands, than during the two prior fiscal years combined. 

There wa.<; increased surveillance of activities of enrolled persom, applicants for enrollment, and prcparer.; of tax returns exercising the privilege 

of limited praetice.. Emphasis was placed on the high standards -of 

ethical behavior expected of practitioners. 

EnroUmenl nnd disciplinary ClIges 

Type 01 enOl ,~,

--­

~, 992

,

, 

'",

, 

".,

, 22. B]B 

" 5

, 

H. " 

" 

,~,

--­

~,I~

• 

".,

• 

~,

2,m "•

H ..... ___ •

, 

(') 

(') 

[~

Gene,.1 enrolimenl_,tlorMyllnd c.rlified public accounl'nll:' 

Applical,on, .pproved ..•.. •.••••••• _•••. •••. ••• ---­ ---­ -.•••••..••••.•••. A~plkal;o",withdrawn or abandon.d. ••••• •••. •••.. ••• . ...._ ...••••..• A~~lic.lion.denied. ••• ~. ••• •••• --­ -----•..•••...••••.•• 

S~""i,1 ""rollment: 

For""r Inlern,1 Re.enue Service em~loye.s: ' Ap~liClltionl IPproved __ - - . AppliClltion. wilhdr~wn or abandoned - ----­ -••••••••-­••.•••. Applicalion, d"nilld••..•••••• •••• _•••••••••••.•••.• ---­ --••••••••••• 

SUcce.sful e••minllion candid_t!!: Applicalions approved•.••••__ _ __... •••• •••. •••• .... ---­ ----•••..••••••• Apprir~l;ons withdrawn or abandoned. __ ••••..•• -­ .•••••••• 

Re~ew"1 :f~~i~:I\~~~ld~::~~::::::.::::::::::::.:::::::::::::.:::::.::::::.::::::::::::: 

Oi",i~rin.ry .ct,on,: Resign'lions Icc.pt.d. ••••. •••• ••• • -.•••.•••.•• -­ --•••••.••••. Su.pension•• __ •••.•••••• •••••••.•••.•••••••.•••• ------•••..• -­••.••••. Reprimands _ -­ --•••••.••••. 

C.... under in.estigation: A~plicants. .....••• ••••• .... •••• ••••.••• ••••. •••. ---­ ---••••..•••.• Enroll.es •.•••.•••. __ ••. •••• •••• •••• ....••••. •••• .... --­ ----­.....­ ..••••••

Cam und.r r••i : Ap~licant> __ ._••••••.•••.••.••_.. •••• ••••.. - . En,oll,*" _.... ---­ ---•••••••••

• 

. 

. 

• 

l Specl~1 .nrollment ...min_lion not required. • No reeordl m~inl.in.d ~Irar 10 1962. 

TASK FORCE ACTIVITIES.-Two task forces concerned themselves with 

activities within the Office of Director of Practice, The first confined 

itself to recommendations pertaining to fOnTIS improvement, control sta~

tistics, and general procedures. In asidition, long-range recommendations will relate to--( I) the staggering of expiration dates of enrollment 

cards; (2) conversion of the enrollment records to magnetic tape with the 

concomitant ust: of taxpayer numbers; and (3) a system of notification 

of impending expiration dates of enrollment cards. The second task 

force reviewed the foml and substance of powcr of attorriey requirements, 

and has under consideration the jurisdictional aspects and control relating 

.to the filing of powers of attorney. 

., 

"

Report on Operations 

NEW SYSTEMS AND PROCP..OURES.-Prominent among the new systcms 

and proccdures were those which control the Row, and expeditc the 

processing, including analysis in depth and investigative procedures of 

originlllllpplieations from receipt to final issuance or denial of cnrollmcnt 

cards, and of applications for reneVo'al of existing enrollment cards, The 

eslablishment of a Vo'ork-in.proeess inventory is a contributing factor to 

the success of these procedures. Such controls were needed to alleviate 

some of the inherent hardships occasioned by the unavoidable ~imelag,

between the date of filing an application and its final disposition, In the 

coming year, further effort Vo'ill be expended toward simplification of 

procedures and more expeditious processing of cases with extraordinary 

characteristics. To this end, a section has recendy been established which 

specializes in the analysis and processing of all derogatory iflformation 

concerning enrollees, applicants, and preparers of lax returns who exercise 

the privilege of limited praetiee withom enrollment. 

RENEWAL OF ENROLLMENT CARDs.-The year marked the sceond 

quintenrrial peak in the renewal cycle {or enrollment cards of.persons 

entitled to praeticl; before the Internal Revenue Service, The issuance 

of enrollment cards good for a period of five yeari. was inaugurated in 

1952, prior to which time all enrollment cards were of unlimited dura· 

tion. In 1952 each enrollee was required to apply for a reneVo'al card 

and, as a result, 55,632 such cards were issued. These cards expired in 

1957 and renewal applications again were required from the enrollees 

whose eligibility to practice had lapsed, with a resultant renewal of 29,6 73 

cards. In the cycle which climaxed for the second time in the 1962 fiscal 

year, 22,838 enrollment cards were renewed--cxceeding by·20,316 those 

renewed in the nonpeak year, 1961. 

At the cnd of the year the roster of'persons enrolled [Q practice before 

the Intemal Revenue Service contained approximately 70,000 names. 

SPECIAL ENROLLMENT PROCRAM.-Sinee the revision of lhe special 

enrollment examination program in 1960, there has been an annual 

decrease in participation. In 1962 only 470 persons were: enrolled as a 

result of the examination, as compared with 842 in 1961, and 1,288 in 

1960. If"the trend continues, some consideration will be given to a 

further re\>ision of the program. However, since the speeial enrollment 

examination presents a unique opportunity for enrollment of persons who 

are neither attorneys, certified public accountants, nor qualified fornler 

Internal Revenue Service employees, an examination similar to those 

offered in prior years will be held in fiscal 1963. In keeping with the 

"New Direction," additional emphasis in the forthcoming examination 

will be placed upon queslions which test candidates in their awareness 

and knowledge of the ethical responsibililies of enrolled agents. 
Annual Report 92 

Advisory .Group . 

The Advi'>oT)'Group appointed in Jone 1961 (whose names and affiliations are listed in the 1961 Annual Report) continued with no change in 

membership. The Group met four, times during the year: September 14-16, December 14-16, March 15-17, and] une 14-16. The June 

rnee~ing was the last meeting of the 1962 Group, appointments of the 

members having expired in that month. 

Buerws Aires. Tax Conference 

The Comm.issioner and Deputy Corrunissioner traveled to Buenos 

Aire; in October 1961 to attend a conference of North and South Amen. 

can tax officials held to further the tax administration improvement goals 

of the Allianee for Progress. Present were 60 representatives from 17 

countries, and representatives from the Organization of American States. 

the United Natioru;, the Economic Commission for Latin America, the 

International Development Ban~, and the United State.s Treasury 

Department. 

At this eonference Comm~ioner Caplin stated that the Service would 

be willing, upon reque.st, to send men to Latin America to give technical 

advice, and to provide training in the United State.s for visiting Latin 

American tax officials. 

Since October 1 the Service has given technical training in the United 

States to tax officials from Brazil, Chile, Colombia, Guatemala, and 

Peru, and also sent tax administration experts to Chile. Colombia, Ecuador, and Peru. . 

Foreign Tax Assistance Staff 

The International Tax Relations Division, which has been resporu;i. 

ble for providing technical assistance to visiting officials of foreign governments since 1952, was abolished'eff~tive May 1, 1962. A Foreign 

Tax Assistance Staff was established in the Office of the Commissioner 

to assume the growing responsibilities of the Service for fulfillment of 

United States commitments to assist Latin American and other governments in strengthening their tax administration. 

Technical Assistance to Foreign Gbt,ernment Officials 

During the year 156 officials of foreign governments representing 41 

countries visited the Service to observe and study its management and 

operating techniques. 

While most visitors are sponsored by the Agency lor Internatiou<ll Development under the Department of State, they come through numcrO':5 

,;},L,,' ,,' 

Report on Operations 93 , 

other .sources among which are the lollowil}g: The United Nations, 

Harvard L,lW School International Program in Taxation, American 

Council on Education, Governmental Affairs Institute, Brookings Iru;titute, Bureau of Education and Cultural Exchange, Ford Foundation, 

Fulbright Scholarships, Institute of International Education, and United 

States Government agcncies. TJ:1e countries represented by such officials 

visiting the National and field offices during the year and the number of 

representatives from each country are as follows: 

Arge.ntina. . 4 Guat~mala. 10 PakiBtan. 1 

Brazil... . . 6 India. 4 Peru. Z 

Burma. . . . . . . . . S Indon~.'l1.a. 8 P!UlippinC'l. 4 

Cameroun. 1 Iran. . . 2 Saudi Arabia. 1 

Canada. 4 IliI'ad. 2 Somalia. Z 

Ceylon. 1 Italy. t South Africa. 1 

Chile. 21 Jamaica. 2 Spain ... ,3 

China. S Japan.. ,5 Surinam. 3 

Colombia. 3 . Jordan. 1 Tanganyika. 1 

Congo. 12 Kenya. 1 Thailand. 3 

Euuopia. 1 Korea. 2 - Turk",y. 13 

France. ' 1 Liberia. 3 Vi"'l-Nam. 4 

Ghana. 1 Malaya. 1 Yue:oslavia. 1 

Great Bnlain . 3 Mexico. 7 

Among the high-ranking officials observing and studying Service 

operations were the following: 

Assistant Secretary, Post Office Department, Great Britain 

French Technical Adviror, Republic of Cameroun 

Member, Finance and Treasury Committee of the Chamber of 

Deputies, Italy . 

Councilor in charge of the Planning Chamber, Ministry of Finance, 

Japan 

Legal Advisor, Ministry of Finauce, Colombia 

Director and Sub-Director of Internal Revenue, Mexico 

Chief of Fiscal Police, MinL~try of Finance and Comme.rce, Peru 

Chief Counsel, Internal Rev~nue Service, Philippines 

Assi:;tan~ Commi.s.sioner of Income Tax, Pakistan 

The Alliance for Progres.s program under which the President places 

improvement in tax administration high ou its list of objective.s has not 

only resulted in an increased flow of visitors from Latin American countries, but seems to havc stimulated a greatcr interest in these studies on 

the pan of many other countries. 

Intensive training in intelligence procedures involving fraud investigat~ons was given to a team of to Chilean tax expens which resulted in 

the establishmeut of an Iutelligence Division in Chile corresponding to 

that in the Service. This was the third of 3 sueh tax teams from Chile 

receiving training in investigative teehniques. 

, ·T•• , 
I 

94 Annual Report

Tax Conventions 

Diseu&'iions took place both at Wa5hington and abroad ,with 3 countries with a vicw to the conclusion of an original convention, a supplementary convention, and a supplementary protocol to a convention. The 

texts of such agreements were in various stages of development at the 

,close of the year. 

A new estate tax convention with Canada became effective on January 1, 1959, upon the exchange of i~trumen\!> of ratification on Apri19, 

1962. 

Proposed income tax conventions with India, Israel, and the United 

Arab Republic as well as a proposed supplemental protocol modifying 

the amended income tax convention of April 16, 1954, with ]apan,·were 

pending ratification in the United States Senate on June 30. 

Statistical Reporting 

New statistics are providing more sophisticated data for use in connection with the administration of our tax system and the analysis of tax 

or economic effects of specific provisio'ns of the Revenue Code.. The 

information published duri~g the year in the four Statistics of Income 

reports li,$ted on page 129 reflects the expanded demand for data to use 

in fiscal policy determination. Ba.<;ed on data reported on ~heir returns, 

'taxpayers are in tum supplied with an expanded amount of data to use 

in their busiuess, professional. and community activities, 

StatisticaI-information like that provided in the table which follows 

indicates how the administrative workload has increased in recent }'ears. 

The workload is growing not only ,because the total number of returns ,~

filed ,has continued to grow but alsO because returns tend to be more 

complex, For example, taxpayers itemized deductions on 39 percent 

of 'the total number of returns filed by individuals for income year 1960; 

the comparable figure wa.<; 31 percent for income year 1956, 

During the second half of the year, there was established the TreasuryInternal Revenue Service Committee on Statisties to render advice on' 

hoyj to resolve problems in the preparation of statistics, involving subject matter, standard of quality, and timeliness of publication. The 

Committee, comprised of recognized scholars and principal use-rs, submitted a number o[ suggestions on the Statistics of Income progrun, 

Names of the members and the organizations with which they are 3.5S0­

-dated are as follows: Harvey E. Brazer, Office of Tax Analysis, Treasnry 

Depaltment (alternate-Douglas H. Eldridge); Warren N, Cordell, 

Federal Statistics Uscrs' Conference (alternate-Rore L. Lowry); Raymond W. Goldsmith, Yale University; Daniel M. Holland, Massaehusetts 

Institute of Technology; Hcndrik S. HOIJchakker, Harvard University; 

George Jaszi, Office of Busine~ Economics, Department of Commerce; 

James W, Knowles, Joint Economic Committee; Raymond Nassimb'en¢; 

lll';;;,.j,.,?, • ";," web),·,. ,­

,
 

Report on Operations 95 \ 

Office of Statistical Standards, Bureau of the Budget; Guy H. Orcutt, 

UnivCl'sity of Wisconsin; .AJmarin Phillips, University of Virginia; 

Chester'B, Pond, New York State Depaltment of Taxation and Finance 

(alternate-Leonard F. Requa, Jr.); James H. Symons, Joint Committee on Internal Revenue Taxation; and Norman B. TUl"e, National 

Bureau of Economie Research. 

In connection with the sampling of returns to provi~e the data published in Statistics of Income, the Service set up a Tax Model File that 

represents the first contribution to the process of developing a new 

technique. designed to impwve the accuracy of revenue estimates and 

reveal with greater precision the impact on the economy of proposed 

changes in the tax law. The Tax Model record is available 0, computer 

tape and arranged in units of representative returns that can be-manipulated to provide mca$ures of the impact of assumed change~ in tax law. 

Tax Model statis'tics can allow for the differences in tax cireumstances 

from individual to individual, as these circumstances sho..... on returns 

filed. 

11Idi~idllul income til" returns, Nnmbel' or rc(urD~ Ilnd !;!ourees of income 

1956-60 

~'"_"_·_·C'_"_'~ _ I

~~l 1958 I 195J I Item 

(lhou.ands) 

A. ~umtl"',ol ,,,IUl"' 

All individua I 'eturns, lolol. .. _ __________ ._ 61. 028 

Talable ____ •••. __ ._ .. _ 48,OGI Non!31abl" .. _.• ____________ . __ .•••.•• 12,967 

Relu,ns ..il" aemiz"d d"du'lio"s, lolal __ ' ••.•• 24,083 

T"aol. _... ________________________ •.. 22,185 Non,...ble _____ "_ .••••_•••••.••••••.. _ 1,898 

~.'Uf"' ..it" 'Iandard dedu'lio", lolal __ • __ •..• 30.945 

T...bl" _________________ •_____ •••••••.• 25, 87~

I1"O'.llbl•.••. _•••.. _••••• _•. ______ ._ 11,069 

GO, 211 ~g, 085 59,825 59,197 

47,497 

12, 714 

45,652 

I~Ul

lG,8(;5 

12, %0 

45,259 

12,938 

22,510 la, all 20, 155 18,459 

20,161 

I, U9 

19, 054 

1,158 

18,569 

t, 586 

16,973 

1,486 

37,1GI 

26, n6 

I1,02G 

38,274 

26,598 

II, G1S 

39,670 

28,296 

11,374 

40,738 

29,285 

11,453 

B. Sou,oe. 01 i"oome (Mill'O" dolla,,) 

~II individu., ,.lulOs· 

Adjusted i"SS in-,om", total .• _____ •__ 31S,4M 305,095 281,154 280,321 2GI,724 

Sala,i". ood '"'f."S- ..-. Bu,iness", pro ••mn_ • _•••••••••• 257,918 

21,072 

241,370 

21. 431 

227, S51 

20,614 

228,071 

2D, ~J9

215,61S 

21,28S' lli"ll"ods ,.,.i.!t<I.. _._ 9,530 S,356 - 8,741 9,124 6,606 Into,.,' I.'''i..d ....•.• _. ._. _._. _._ Ro"l~ and lOyAl tie. ______ •..••_. ___ • Other i,'«Imll.. ___ 

S,051 

3,312 

IS, 518 

4, .'~5

3, 135 

19.1Dl 

3. 6,~

3.217 

17,304 

3,319 

3, 25~

16,202 

f,971 

1,344 

16, 000 

r..able "lu,ns 

Mi",led Il,a!. i"'-Ome, ,.,.1 ____ ..•_...". f9J,152 281,175 2ti2,IBS 2G2,169 249,551 

Sal"ies "nd w.~es..•.• _ 244,063 23J, S04 'IJ.On 214,187 201,837 Bu,in"ssor ~ro •.,ioo .• _._ 19,153 20,222 18.900 18, S96 19,116 ll'vi<lend. '"'eived __••• _. ___ ._ 8,876 8, 789 8,257 8,201 lnle,e,l,eceived ___ .•••. _._ •..••• 265 3,154 3. 116 'm2,841 2,46S Rent. and royall<". ___ ••..•••••.••• 2.599 4 1 2, GOl 2,582 2,131 Other ioceme _____ .••••..•••.••.•••• 17,l96 18. G05 li;~~ 15,3J6 15,139 

~ot •.~Ret"IO' oIassHi"d as laxable o,e 11>0'. "poll,oll in",me ,ax all", ,,"dit•. 

6:180040_2-----.B 
96 Annual Report 

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100 Years of Service11162-1962 

The lnternal Revenue Service in 1962 completed 

a century of operation as a continuing agency of 

Government. 

Born of the fiscal needs of the Civil War emergeney, the Revenue Act of July 1. 1862, was the 

foundation of our present lnternal Revenue System. 

During the past 100 years there have been, of 

course, many and dramatic 

c h.a n g e s reflecting the 

growth of the nation, its 

"'arying revenue needs, and 

the economic and' political 

philosophies of the times. 

Yet the purposes and 

organization of the Federal 

tax assessment and collection system are basically the 

same today as when Pre.<>ident Lincoln signed into 

law the most sweeping revenue prodncing measure in 

.the Nation's history to that time. , 

That act created the oRiel'. of Commissioner of 

Internal Revenue, and, under direction of the Treas.­

ury Secretary, the Commissioner was charged with 

preparing an instructions and regulations needed to 

carry out the law. 

The new law provided for progressive taxation, 

for levies on incomes, and for tax withholding, which 

are all vital features of modern revenue statutes. 

In addition to incomes; the new law taxed estates, 

publie utilities, occupations, liquors, beer, tobacco, 

banks, insurance companies, advertisements, slaughtered cattle, railroads, ferryboats, and other specified 

commoditie;;. It provided stamp taxe..~ on certain 

RepoTI 0" Opera/ions !l7 
98 Annual Report 

commercial papers; perfume, cosmetics, medicines, and playing cards. 

The first Commissioner of Internal Revenue, George S. Boutwell, was 

a Republican lawyer [rom Massachusetts. AI 44, he had taught s-chool, 

served in the Massachusetts legiE./alurc, and been Governor of his State. 

Later he was to serve in both the House of Representatives and the Senate 

and as Secretary of the Treasury. . 

The bulk of the operations of the new agency, then as now, was jn the 

field, from handliug appeal.no detecting frauds. A key official of the 

system was the a'iSessor. He kept his office open at all hours, heard 

appeals, issued summons to those who failed to make retums after being 

issued notices, examined taxable propelty, and inspected accounts. 

As the war dragged on, other internal revenue measures were p'assed 

to cover more items and increase the yield from income and inheritance 

taxe:>. A post of Deputy Commissioner of Internal Revenue was created 

in 1863, and the Secretary of Treasury was empowered to hire revenue 

agents tohelp detect and prevent fraud. 

Receipts from internal revenue for fiscal 1866 reached $311 million. 

War Taxation Repealed 

The Union at the end of the war faced huge financial responsibilitiesrehabilitating the South, and paying off a national debt of $3 billion. 

At the same time an inte;n~ive drive was ou to repeal the Civil War 

taxation .. Abraham Lincoln in 1864 had apologized for the "inequities 

in the practical application of taxes." Others were'ie~~ restrained in t.heir 

criticism. 

As the years went by, the elaborate wartime revenue system was dismantled. The system of rate progression in the income tilX was abandoned in 1867. The income tax was rcduced and the inheritance lax 

was repealed in 1870. Finally, the income tax itself died in 1872. Most 

of the other levieS were gone by 1877. From ,then until 1913, tariffs 

'were the main supply of U.S. reveuue. 

But restoration of the income- tax was, .from time to time, pressed by 

various groups and an abortive effort in that direction was made before 

the tum of the century. 

The Wilson Tariff Act in 1894 revived the tax on income. An Income Ta.x Division was organized iu the Office of Intemal Revenue. 

But the division was disbanded in onlv a few months, for in 1895 the 

Supreme Court held'that the income l~vy was a direct tax and had not 

been appOltioned equally according to popUlation, as the Constitution 

prescribed. 

Neveltheless agitation for such a Ie\')' continued to mount in the early 

years of -the lwentieth century. ' 

·1 

Report on Operations 99 

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In Angust 1909, a corporation excise tax became law. Although 

based on income, it was termed an excise on ~he privilege of doing busi· 

ness. It imposed a tax of I percent on net corporation incomes above 

$5,000. A Corporation Tax Division was organized in Internal Revenue to admin.ister the new law. 

President William Howard Taft's proposal to amend the Constitution, 

so as to permit a tax on individual income<;, moved quickly throu'gh Con· 

gress by overwhelming votes. By February 1913, enough States had 

ratified the amendment to make it part of the Constitution. 

Ineo'me Tax Revived 

Congress followed throngh. On October 3, 1913, a tariff bill, with 

income tax sections drafted by then-Representative Cordell Hull became 

law. The tax was I percent on net personal incomes of over $3,000, 

with a snrtax;or extra tax, of up to 6 percent on incomes over $500,000. 

The same act repealed the corporation tax of 1909 and imposed a new 

tax on net income of corporations. 

As soon as the law was passed, the Personal Income Tax Division was 

established. One of the most significant portions'of the new income tax 

statute provided for collection ar the SOurce. This withholding method 

was applied to dividends and inten~t payments by corporations, and to 

rents, salaries, and wages paid by corporations or individuals. The collection-at-the-source provision was repealed in }916 bnt it was to become 

a vital fixture of internal revenue administration a generation later. 

The revenne system had not remained static in the interim between 

abolition of the income tax in 1872 and its reinstitution in 1913. The 

period saw the birth of regulatory ta~es, first on oleomargarin'e in 1886, 

later on narcotics. 

The concept of using taxes to regulate, rather than solely to raise 

mO{ley, was ~ested and affirmed by the U.S. Supreme Court. The device 

subseqnentlywas employed in" a number of ways. 

Record collections and greatly expanded functions characterized the 

World War 1 period for the Internal Revenne SeI\1ice. The cost of 

World War I has been estimated at $35 billion. About one-third of it 

was paid in taxes. 

As early as 1914 Congress passed a revenue measure with many of the 

same excises on liqnor and tobacco and other levies that helped pay the 

bills for the brief Spanish-American War near the tum of the eentury. 

An omnibns Revenne Act of 1916 boosted income tax ~ates. The aet 

included a new estate'tax, a tax on stock dividends, and a tax on munitions manufacturen;' profits. 

, 

Report on Operations 

World War I Taxation 

From 1917 to 1919, new tax laws were both revenue-producing and 

regulatory. The War Revenue Act of 1917 was a sweeping measure. 

It dealt with income, excess profits, beverages, tobacco and tobacco 

manufacturers, public utilities and insurance, excises, admissions and 

dues, stamp taxes, and estate taxes. 

Th~ Revenue Act of 1918 codified.all the existing tax laws. It provided amortization allowances to permit manufaeturers who invested in 

special war equipment to write off the cost. The income tax provisions imposed a normal and surtax rate structure}hat went up to 77 , 

percent. The law also ineluded new excess profits and estate taxes. 

But it had a number of relief provisions. For example, it was the first 

U.S. tax to minimize double taxation of individuals and dome<;tic eorporations having foreign income. Liberalized deductions were also allowed for depletion o.f natural resources. 

The act also included a tax on anyone who employed child labor, but 

that section of the law was declared unconstitntional in 1922. 

A far more important division in terms of revenne law enforcement 

was created'in this period~the Intelligence Division. It was established to root out and prevent tax fraud and was to become one of the 

most powerfnl and respected of om Federal law enforcement units. 

The combined effects of the revenue legislation of World War I 

reached a high point in 1920. Total internal revenue collections aggrcgated about $5.5 bil~ion that year. 

Taxation of Alcoholic Beverages 

Few revenue acts during the histOly of internal revenue have not provided for levies on liquor. From 1868 to-1913, nearly-90 percent of 

internal revenue came from taxes on distilled spirits,-"tobaceo, and fermented liquor. With the taxes came collection and enforcement , machinery. 

A whole new concept of enforcement had to be developed after the 

18th amendment to the Constitution was ratified in 1919. The prohibition amendment made unlawful "the manufacture, sale or transportation of intoxicating liquon; * ...... for beverage purposc">." 

'On October 28,1919, Congress passed, over President Wilson's veto, 

the National Prohibition E.n[orcement Aet. The Volstead Act, as it 

was known, gave the Commissioner of Internal Revenue primary responsibility for administration, invcstigati,?n, and enforcement. 

The Prohibition Unit was set up in Internal Revenue, with one branch 

to enforce the criminal provisions and another branch to supervise 

'-iJ......: ,: 
I 

102	 Annual Report II' 

fealures of the law that covered nonbeverage liquors. The Prohibition 

Unit lasted nntil 1930, when lhe Justice Department took over primary 

enforcement duties. 

In one of the busiest years for the Prohibition Unit, 1925, more than 

3,700 internal revenue employees wefe at work on prohibition and narcotics enforcement fnnctions. Morc than 77,000 arrcslS were made that 

!!	 year. Distilling and distributi?1l of bootleg liquor had fallen under 

criminal control on a national scale. 

\'Vith repeal of prohibition in December 1933, enforcement of the 

Federal liquor laws was returned to Internal Revenue, along with regularar.,. and tax collecting duties. 

The Alcohol Tax Unit was established to administer the revenue laws 

relating to production, warehousing, and t.1.X pa}mem on distilled spirilS. 

Later this unit also took on administration of the National and Federal 

Firearms AclS, which require control and rcgistration of certain kinds of 

fireanns. 

In 1952, the tobacco tax was addcd to its'responsibilities and it was 

rcnamed the Alcohol and Tobacco Tax Division. 

Government Assumes Larger Role 

, In the dccade of thc 1920's, taxcs were cut five times and reeeipts still 

were high. However, the situation changed when the stock market 

plunged in 1929 and the depression began. 

\'\'hen President Herbert Hoover's forecasts of budget surpluses for 

1931 and 1932 bcgan to fade inLO deficits, more taxes were recommended. 

In 1932, revenue eollcctions totaled $1.5 billion, lower than at any 

time since 1917. Congress raised income taxes and reduced the exemp. 

tion level, and more than doubled the rates for estate taxes. Gift taxes 

:'i	 were re-cnaeted. 

I:	 T,he theol)' that the Federal Government should play an active role in 

the economy gained acceptance after Franklin D. Roosevelt took"offiee, 

This meant 'new responsibilities for Internal Revenue. New divisions 

were fonned to administer the tax aspects of the massive legislative program enactcd during the New Dcal's first decade, most notably the Social 

Seeurity Act of 1935. . 

The Social Security Tax Division was set up 'in the Internal R.evenue 

in 1937. Extension of coverage and boosts in rates have made employment taxes one of the major responsibilities of Internal Revenue. 

Taxes in World War II 

World \'\'ar II-with its shift of emphasis from a ~arrow base income 

tax affecting 8 million taxpayers to a broad base ultimately affecting 60

• 

, 

Report on Opera/ions	 103 

million-brought the individual income tax to.tens of millions of taxpayers for the first time. The immense size of the operations reguired to 

administer this mass income tax placed an unprecedented burden on 

Internal Revenue. New methods of mass collection and enforcement had 

to be devised, for the prewar administrative structure had been developed 

to eollect and enforee an ineome tax levicd on a relatively small group of 

higher income taxpayers. 

Two comparisons will bring home the radical changes wrought by 

World War II: 

I. Taxpayers with income under $5,000 accounted for only 10 

percent of revenue colleeted in 1939. By 194-8, these taxpa)'crs 

aceounted for 50 percent of revenue collected. ' 

2. In 1939, 700,000 returns accounted for 90 percent of the total 

tax liability. By 1948, this number had climbed to 25 million 

. returns. 

A tax system that affected so many taxpayers and their families eould 

present serious eollection and enforcement difficulties, cven in wartime, 

if it were too compIe:< or .irritating. Millions of taxpayers were tot.1.Ily 

inexperienced in filling out returns. 

Altogether about $153 billion in taxes was eollccted during the Second 

""orld War. . Fiscal as well as other policies were changed drastically by thc war. 

During most of the 1930's, fiscal pollcy was directed at fighting dcflation, 

creating employment, and reviving sluggish industry. During most of 

the war and immediately thereaIter a major goal was to fight inflation. 

During the .....ar, goods, not buyers, were lacking. 

Building and supplying a military structure for ourse)ve.s and our allies 

took all reins off spending. But as inflation increased, heavy taxes to 

support the war effort served a sccondary purpose in helping to reduce 

purchasing power which tendcd to drive up prices. 

Wartime taxation had still another purpose in addition to paying defense bills and curbing inflation. The excess profits tax on corporations 

was enacted with the widespread belief that business should not profit 

unduly from the war effort. 

Three significant changes grea~ly simplified internal revenuc auditing 

procedures. One was the adoption of the short (onn return in 1941. 

Another was withholdiug of taxes at the source. The third \',las adoption 

of the standard deduction in 1944. 

The Trcasury Department had recommended that a portion from 

wage, salary, dividend, and interest income be withheld for tax purposes, 

thereby putting taxes on a pay-=-as-you-go basis. 

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104 Annual Report 

Withholding at Source Established 

The Current Tax Payment Act of 1943 put wage.s and salaries on a 

withholding basis for tax collections beginning Jnly 1, 1943. Partial 

forgiveness of taxes for 1942 was a fea ture of the act. 

Withholding did not change exist.ing tax rates. The Revenue Act of 

1942 had involved a variety of levies_ Income tax rates were iucreased 

then and individual exemptions lowered. ,A further tax on personal 

incomes was the Victory Tax. A corporation income and exceSS profits 

'tax, as well as a capital stock and declared-value exces..<; profits levy, were 

imposed so that corporations had to pay as much as 80 percent of their 

net income in taxes. 

The estate tax was made more restrictive, and excise taxes were increased on tobacco, liquor, travel, and telephone sen.·ice. 

Congress passed the Revenne Ace 0'£ 1943, which, among other things, 

provided for still higher exce.-..~ profit~ and excise taxes, over the veto of 

President Roosevelt, who rejected it as inadeqnate. 

In his January 1944 budget message to Congress, Mr. Roosevelt recommended tax simplification. The Individnal Income Tax Act of 1944 

was t1)e result. It made personal exemptions uniform at $500 and 1'Cplaced the Vietorr Tax with a new 3 percent normal tax on net income. 

The former normal ta.x .....as absorbed with a new surtax schedule with 

rates from 20 to 91 percent. The new law allowed small taxpayers to 

file their withholding receipts as tax returns, if they so chose; it rdieved 

mj]Jions of having to file declarations of estimated tax. ­

This act also provided for thc standard deduction of 10 percent, which 

eliminated the need for auditing deductions for 80 percent of all individual returns. 

By the fall of 1945, Roosevelt was dead. Harry Truman was President and atOmic bombs had fallen on Jaran. Treasury Secretary Fred 

M. Vinson ,:eeomm,ended the first tax cut since Andrew Mellon was 

Treasury Secretary. 

Congress passed another tax cut in the spring of 1948, this time of 

$4.8 billion and over the veto of President Trnman. This law brought' 

the individual exemption to' the present $600. It also gave married 

couples the option of filing joint returns. 

, ,Service Is Reorganized 

A series of internal and congressional -investigations in the postwar 

years sparked the most complete administrative overhaul in the history of 

the internal revenue system. 

,
 

';"/ ':c~-:~1l;.ioi."""

Reporl on Opera/ions 105 

While only a tiny percentage of Internal Revenne Service people was 

found to be involved in improper activities, the revelations dramatized 

an apparent need for drastic changes in the tax collecting apparatus. 

Actually, the seeds of reorganization were sown in the hotbed of the 

immense increase in workload and expansion of the work force during 

the '''orld War II years. Out of this grew a realization that the Revenue 

Sen.;ce organization and its business methods (basically nnehanged since 

enactment of the income tax laws in 1913) were not geared for the 

workload of the 1950's and the accelerating tempo forecast for the 1960·s., 

The roots of the reorganization of Internal Revenue took hold in 

October 1946, when the new Treasnry Secretary, John W. Snyder, called 

a meeting of key revenue officials to plan for streamlining and modernizing the tax collecting agency and to start a management improvem.ent 

program to help smooth the transition to peacetime operations. 

'Several steps were taken toward modernizaflon. Tax forms and instructions were simplified to get better compliance. An audit control 

program was started in 1949 to improve enforcement. :Recordkeeping 

was improved by microfilming. And some returns bcgan to be proeeised 

by electronic machines, as the agency took its first steps on the road to 

large-scale application of automatic data proec~ing.

By 1951, Internal Reveuue had partly C<lUght up with its backlog 

despite new Korean 'Var taxes enacted in 1950. It was able to-mail out 

_refunds to taxpayers who had overpaid or had too much 'withheld one 

month after the tax-filing deadline. 

When the Congre~ional probes focused attention on the agency, demands-for more drastic change became widespread. The bnlk of tax 

returns (nearly 83 million in 1951) were processed in the offices of 64 

collectors around the country. The collectors were key officials of the 

system. In the hcadqnartcrs in 'Va~ington seven divisions functioned 

on -the basis of thc type of tax collected. Some 200 main field offices 

reported to the Commissioner through these ~ven divisions ,in 

Washington. 

Political App,ointments Abolish.ed 

Depnty collectors had been under the civil service merit system ;;.ince 

1942. But collectors .were political officials and their posts were often 

the most highly songht in a State. 

On January 14, 1952, Pre;;.ident Truman' sent Congress his Reorgani­

'lation Plan No.1, to reorganize the Office of Internal Revenue. The 

stat.ed purpose was: "to provide better machinery for assuring honest 

and impartial administration of the internal revenue laws * * *" 
106 Annual Report·

1'110 brief the objectives of the Reorganization Plan were 10 replace 

p'olitical appointments with a career service, improve Washington coordina,t!90, decentralize sen;jce to taxpayers, 'and restore integrity and . . . public confidence where it was lacking. 

The Plan abolished all political offices under the rank of Commissioner and supplied a framework Jor overhauling the \Vashinglon headquan:c~. 1t provided for appointment of aSsistant commissioners under 

the cla'iSified civil service. 

. All field operations, such as returns receipts and processing, examinalion of returns, billing and refunding, and service to taxpayers were 

pulled together under newly created district directors. Regional Com. 

niissi.onerF: were established to help Washington manage the vast nationwide field org:ani7.ation. Considerable authority was delegated to the 

newly c~eated field offices. 

The agency was organized on the basis,of function rather than the 

type of tax collected, ~\'ith the exception of the Alcohol and Tobaeco 

Tax Division, whir.h had nnigHe characteristics involving in"dustry regulation and enforcemelll activity. 

Responsibility for internal security and internal audit was centralized 

into an Inspection Service, The.new organization was raised to Ass'istimt Commissioner level, independent of the operating acrivities of the 

agency, 'to maintain high standards of efficiency and conduct among 

revenue employees. 

The advantages and benefits of reorganization cited by most officials 

are these: 

A corps of career people selected on the basis of competence and promote? on the basis of merit promised more integrity and more eontinuier in actions and policies. Key offi.cials could be transferred within 

the system. This allowed more flexibility than did the old system when 

collectors had to be residents of the areas they selved, 

Service to Taxpayers Emphasized 

Bener :>en·ice to the taxpayer was pro\'ided. With one man administrati\'c!Y in charg(: of all revenue operations in the area, coordination 

;'Ind efficiency would be improved. Regional eommis:iioners would take 

ovcr rcspomibilit~; for day-to-day field management problems, largely 

frccing \Va~hington to work on-overall improvement aud uniformity in 

administering the tax itlws. 

After the Eisenhower Adnlinistration took office, it found the reorganization basically sound, On July 9, 1953, the unofficial but tra' 

ditional name, "Bureau of Internal Re\'cnllc" was o~eially changed to _ 

; I 

Report on 0 per-alions 107 

the "Jnternal Revenue Service," to emphasize the important ':,~rr;vice-ll?"

taxpayers" side of revenue administration. , , 

The numbcr of regional offices was cut from 17 to 9 and, approximately 500 one- or two-man posts of duty among the 1,400 local offices 

scattered throughout thc 64 districl'l were eliminated. ',' 

Before Ihis period, the enactment by Congress of the Social Security 

An of 1950 extended CO\'crage greatly, bringing in most of the self· 

employed. It also raised the tax and broadened the tax base. Enactment by Congress of the wagering tax law, upheld by the Snpreme Court 

in 1953, also meant added collection and cnforcement rcsponsibiliti.es. 

In 1954, the new Internal Revenue Code was cnacted by Congress. It 

provided complete rearrangement ,of the tax laws, modcrnization of 

many provisions, clarifications and additions as wcll as reductions. It 

was the most comprehensive revision of the La}[ laws since cnactment of 

the income ta}[ more than 40 years before. 

In 1956, the Service launched its "Blue Ribbon" program-a major 

effort to increase the effectiveness of the Service by increasing the caliber 

and prodnetiv"ily of its work force. Since then the Service has been conducting vigorous college recruitment campaigns to attracL top-qnality 

applieanl'l to enter revenue employment, and, at the same time, has pro· 

vided training to enhance employees' ability Lo perform at the fnll working level. 

These recruitment and training systems have been geared into well· 

dcveloped career programs designed to encourage top-caliber people to 

stay in the Service and assure their orderly progression to more responsible positions. Through its "Blue Ribbon" program, the:'Serviee has 

advanced to the fore£ront as one of the most progressive agencies in the 

Fecleral &ervice. 

Automatic Data Processing Instituted 

Early in 1961, Ihe Service embarked -on one of the most far-reaching 

programs in iL~ 1DO-year history. This was the beginning of operation 

of one of the most elaborate systems of high-speed electronic data processing equipment ever conceived. It will enable Ihe Service, in its role 

as the world's largest accounting and forms processing organization, to 

handle the acceleratinlT number of returns which totaled nearly 100 million in 1962 ~ompareJwith a mere 6 million in 1930. Auto~atie dat<l 

processing is expected 10 spur greater compliance by detecting elTors, 

omissions, and delinquencies. 

As the Intemal Revenue Service marks il'l 100th anniversary, its employees number about 57,000. 

I ...."~'"'.- ',-' , 
108 Annual Report 

Under the Commissioner of Internal Revenue, the main officials at 

the National Office in Wa.mington, where policies and programs are developed and guided, are: 

, Deputy Commissioner and six ABsistant Commissioners-for Ad· 

ministration, Compliance, Data Processing, Inspection, Planning 

and Research, and Technical-a Chief Counsel and Director of 

Practice. .. 

Sixty-two district offiees and some 900 local offices are located over die 

Nation. Nine Regional Commissioners in the field,are responsible to 

the Washingto~ office. Three alea and two regional sen'ice centers and 

the National Computer Center complete the 1962 organizational 

framewo'rk. 

Most of the employees are in collection and auditing work. Other 

major functions include infeUigence, appellate, administrative, and alcohol and tobacco tax work. 

Todai~ shrinking world has brought the Se~viee new international 

functions. Five pennanent posts abroad a..~sist taxpayers and enforce 

tax laws. The Se.vice also is aiding Latin American nations with their 

tax administration problems through the Alliance for Progress program. 

As Ameriea's needs and goals develop in the future, they will be reflected in the funetions and policies of the Internal Revenue Se.vice just 

a" they have in the pa"t. 

There is one principle of the American system of taxation, present 

since the beginning, that must be preServed-self-assessment, whereby 

the taxpayer files his own return, setting forth his income and the amount 

of tax he owes. Today, approximately 97 percent of aU Federal taxes 

are thus paid, on the initiative of the citizen himself. ' 

A primary mission of the Service as it begins a second 100 years is to 

encourage and strengthen this voluntary system, by fair and rea..~onable

administration, with concern lor the rights and conveniences of taxpay_ 

ers, while maintaining a vigorous enforcement program to curb abuses 

which serve to undermine public confidence. 

.1 

.••.:-,' ,,"-:.r..-:..,L'.: 

Commissioners· of Internal Revenue
 

J
 

Servi<;;e 

Name' State 

From- Toorge S. Boutwell. Ma55achu:;et~. {nly 17, 1862 Mar. 4,1863 

ephJ. Lewi:i ... Penn5ylvania .. 1ar. t8, t863 June 30, t865 

lliam Ortou. New York. Jnly I, 1865 Oc[. 31, 1865 

,,·ard A. Rollinl. New Hamp5hire. Nov. t,1865 MM. 10, t869 

lumbus Delana Ohio. Mar. 11,1869 00::t.31,1870 

·red Pleasanton. New York. Jan. 3, 1871 Ang. 8,1871 m W. Douglau. Penmylvania. Ang. 9, t871 May 14, 1875 J niel D. Pran Indiana. May 15, 1875 July 31, 1876 een B. Raum. Illinoi~ . Ang. 2, 1876 ~r. 30, 1883 

Iller E~·ans .. Kenmcky. May 21,1883 af. 19,1885 

;eph S. Miller... West Virginia. Mar. 20, t885 :Mar. 20, 1889 

10 W. Mason .. . .. do .. Mal·. 21,1889 Apr. 18, 1893 

eph S. Miller.... .do: Apr. 19, 1893 Nov. 26,- 1896 

St. Johu i"orman. Illinoili .. Nov. 27, 1896 Dee. 31, 1897 

tflan B. Scott.. ... . WCI;t Virginia. Jan . 1, 1898 Feb. 28, 1899 

orge W. Wilson .. Ohio .. Mar. 1,1899 Nov. 27,1900

10 W. Yerkes ... . ..... Kentueky Dec. 20, 1900 Apr. 30, 1907 J 

1n G. Capcrs. Sonth Carolina. iune 5, 1907 Ang. 31, 1909 {;: ,yal E. Cabell.. Virginia. cpt. t, t909 Apr. 27, 1913 

,t1iam H. Osborn. North Caralilla Apr. 28, 1913 Sep[. 25,1917

niel C. Roper ..... South Carolina Sept. 26, 1917 Mar. 31,1920

,lliam M. Williams. Alabama Afr. 1, 1920 Apr. 11, 1921 

.vid H. Blair. .. NOlth Carolina. r. ay27, 1921 May 31, 1929 

,bert H. Luca5. Kenmeky. June 1,1929 Ang. 15, 1930 

.vid Burne[, Ohio. Aug. 20, 1930 May 15, 1933 

ty T. Hdvrriug. Kansas.. Juue 6,1933 Oct. .8, 1943

,be" E. Hauneg~n Missonri. Oct. 9, 1943 Jan. 22, 1944 

ieph D. Nuuan, Jr.. New York.". Mar.· 1,1944 June 30,1947 

'orge J. Schoeneman Rhode bland .. Jnly 1, 1947 July 31, 1951 

1n D. Dunlap .... Texas: Aug. 1, 19,,1 Nov. 18, 1952 

Colcman Atldrcw~. Virginia. Feb. 4, 1953 O<;;t. 31, 19~5

'&3dl C. Harring[OIl. Rhode bland. Dec. 5, 1955 Sept. 30,1958 

Lila Latham ..... Califoroia . Nov. 5,1%8 J~p. 20, 1961 

_fortimer M. Caplin. Virginia. Feb. 7,1%1 , 

Note.-0ffice of Comnlls~ionerof Imernal Reveuue created by act 6f Cotlgreso, July 1, 

1862; 

I In additiou, the following wen: i\l;ting Comnlls"ioner1i dnring period~ of time when 

there was nO Coml~sioller hOlding the office: Jofln W. Douglass, ofPenn:iylvania, 

from Nov. 1, 1870, toJan. 2, 1871; Henry C. Rogers, of Pennsylvani", from May 1 to· 

May 10, 18B3, and from May 1 ta .Jnne 4, 1907; John J. Kl)OX, or MinnCl;ota, from 

May 11 to May 20, 1883; Roben Williamo, Jr" or Ohio, f<:om Nov. 28 to Dec. 19, t900; 

Millard F. West, of Kentucky, from Apr. 1210 May 26,1921; H. F. Mires, of Washington, from Aug. 16, to Aug. 19, 1930; P'·o=ly R. Baldridge, of Iowa, from May 16 to 

June 5, 1933; Harold N. Grave:l, of Illinoi~, fmm Jan. 23 to Feb. 29, 1944; John S. 

Graham. of North Carolina, from Nov. 19, 1952, to Jan. 19, 1953; JUiilin F. Winkle, 

of New York, from Jan. 20 to Feb 3, 1953; o. Gordon Delk, of Virginia, from Nov. t 

to De<;;. 4, t 955, and from Oct. 1 to Nov. 4, 1956; Charles I. Fox, of Utah, from Jan, 21 

ta Feb. 6, 1961. 

Comml3aiollen Of Intt'7"1\al RflTlrnve 109 
• 

I'ic.,",__"$•••iii~'j" IiIIII.TIIl..=iiliiS__ __ __ '.;-Ii~i1i'II''.*.'••2.1'•••'1 i1i'

l-J 

• 

--1 

• 
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113 112 Annual Report Appendix 

Taxpa:yer Publications 5174, was eompletely revised and made available to the public ill lhe fall 

Your Federal Income ,Tax, IRS Publicalion No. 17, is \\TiUen for 

individual taxpayers. The 1962 edition ,,'as reorganized and much of 

its contents completely rewritten to afford taxpayers more concise and 

understandable information. In addition 10 covering in detail the mn- • 

of-the-mill problems of the average taxpayer, this edition also furnished 

simplified explanations of the more complex problems. A filled-in sample 

of the new individual rerum, developed for 1961, appears in the front of 

the book. All parts of the return are keyed to page numbeTsin the booklet where detailed cxp(armtions and examples can be found. The 1962 

edition contains 144 pages and sold for 40 cents a copy by the Government 

Printing Office and local Internal Revenue offices. This book ranks 

among the best sellers of Government publications. Approximately 

700,000 copies were sold this year representing an increase of about 

160,000 copies over last year. fn addition, 85,000 copies'were used i'n the 

Teaehing Taxes Proiram, the Taxpayer's Assistance program, and in 

various training p.rograms. 

Tax Guide for Small Business, IRS Publication No. 334, is written 

especially for soie proprietorships, partnerships, and corporations. This 

booklet is an important segment of the program for more effective taxpayers' assistance and, education. Income taxes, excise taxes, and em­ ,~I

ployment taxes are explained in plain language and numcrous cxamples "II' 

are used to illustrate the application of the laws. A check list, of partieular interest to new businessmen, shows ·thc taxes for which different 

kinds of business organizations and bnsincss activities may be liable and 

what the businessman should do about them. A tax calendar for 1962 

is also provided to assist businessmen in keeping track of when various , things should be done d~ring the year with respect to all thcir Fcderal .",,: 

taxes. The booklet contains 144 pages and is sold to the public for 40 

cents a copy through the same outlets as Your Federal Income Tax. 

This year about 230,000 copies werc sold and 35,000 were printed for use 

by the Service. Iii 

Farmer's Tax Guide, IRS Publication No. 225, explains the tax problems of farmers. A 1962 tax calendar was added to help the farmer keep J 

track of his tax obligations throughout the year. The booklet discusses :1 

income, employment, and self-employment taxes and contains numerous ',j 

examples illustrating the rules. It contains 64 pages, and 1,000,000 

copies were distribnted through fntemal Revenue offices and agricultnral ,I~

,

,ij extension agents of the Department of Agriculture. . I

I

CASUAI.TiES-How the Federal Income Tax Applies to Storms, -IIII

Floods, Hurricanes, Other Disasters and Tltefts, IRS Document No. 1,II,,' 

of 1961. As the result of hurricancs which strud various parts of the 

United Stalcs at that time, and the extensh'e fin:s in Texas and Califomia, 

180,000 copies were distributed to taxpayers before March 1962, when 

lhe President signed into Law a new "throw-back" rule for disa~ter area 

victims. The document was thell revised to include all explanation of 

the new disaster area rule, and 125,000 additional copies were in the 

hands of our field offices lor immediate distribution. ' 

T a:r. Gu.ide for u.s. Citizens Abroad, IRS Pllblicalion No. 54, is written especially for United States citi"lens who re~ide or h'ork abroad. In 

30 pages it tells them that wherever they reside they are subject to V.S. 

tax laws and that under certain conditions the income they cam abroad 

is exempt from income taxation. It explains the rcquirements for filing 

:Fcderal income tax retllm~, and how to determine whether earned income is paniaHy or wholly exempt from tax. U.S. eonsu!ates, embassies, 

and the Office of International Operation~ distributed 315,000 copies. 

U.S. Tax Guide for Aliens, fRS Pllblication No. 433, a 28-page 

pamphlet, revised in December 1961, explains the U.S. tax Slams of 

aliens, both residem and nonresident, alld the tax provisions applicable 

to each. ft also explains [he basis for determining whelher or not an 

alien is engaged in trade or business in the United Stales. and the tax 

provisions applicable in either case. In addition it eontains a general 

discussion of the provisions 'of the U.S. tax lreaties. About 10,000 

copies of this pamphlet have been sent to district offices and V.S. em­

, bassies and consulates overseas for free distribntion. 

Information Guides~InternationalOperations 

No. I-Fulbright Awards and U.S. Income Tax 

No. ,2-Income Tax Deductions of Members of the foreign Ser,vice, Department of State 

No. 3~Change of Status Year for Nonre.~ident Alien Taxpayers 

No. 4-elaims for Recovery of Manufacturer's Excise Tax on 

Exported Articles 

No.5-Social Security Coveragc for Clergymen and Religious 

'Vorkers Abroad 

No. 6-Preparalion of Form 1040E 

No. 7-Tax Advice for Foreign Scholars and Visitors on Offieial 

Educational and Cnhnral Exchange Programs 

No. 9~U.S. Tax Guide for Aliens (desl:ribed above) 

Condemnations of Private Property for Public Use, IRS Document 

No. 5383, was issued in cooperation with the Bnreau of Public Roads 

for the first time this year to explain the tax eonsequcnees of eondcmI ~~r

r~

" ," 
'"
 

;:1 

Annual Report "

114 

nations fOT new highways and other public use. It ex.plains how to ~, defer tax on any gain realized due to a condemnation; how to replace ,!il 

condemned propcny; how a condemn!-l.lion gain or loss is compared with 

other gains and losses; and other tax facelS of condemnation actions. 

Motor Fuel Tax Pamphlets explain the latest rules in regard to the 

various Federal motor fuel taxes. There are three such pamphlclS: 

Federal Use Tax on Highway Motor Vehicles, IRS PubJicauon 

No. 349 

Federal Gasoline Tax Refund JOT Non·highway and Transit VIe, 

IRS Publication No. 378
 

Farmu's Gow/ine Tax Refund, IRS Publication No. 308
 

Teaching Ta.xl!!, IRS Publications Nos. 19,21,22; and 27, is a program to indoetrinate high school students, college students, and others 

in the basic;: principles underlying the, Federal self-assessment system of 

taxation. Approximately 2,250,000 students participated in the cour'5e 

last year. 

MISCEI.LANEOUS TAXPAYER ASSISTA1'ICE DOCUMEt"TS 

D""u"",nt n""umnu

No, No.

PermnaJ Exempcions La.sa From Operating a Bus.i- and Dependenl!. 5013 5062 "~

Employee Expens<':S., SOU lnten:::;t Deductioru. 5074 

Sick Pay .. ,. 5016 T= 5075 

5107 '<" Selling Yonr Home, 5017 Filing Your Tax Return. 1!'" 

Relir<:ment Income and Credit. 50113 lrutallmcnt and Dererred·PayMedical and Qental Expenses, 50~D mult Sa.le;. SlOB 

What II [ncome, 5045 Alimony... "." ... 'c' 5109 

Miscellancoug 'f Deductible Ex. 

ror 196~ 5046 pen,o:s . 5110 

Self-Employment Tax. 5047 Tax Withholding and EniSn.lei and El<changca of A:;I;el:l, 5048 mated Tax, 5111 

EnlertD.;nmenl ror Ru~;ne:;l; 5049 Accounting Periods and Meth· 

Depr<:ciation, Ikpletion, /\mor- od:! .•. 5175 

tization. 5050 Bad Dcbl!, 5176 

Business Expemes. 5051 Withholding From Wages by 

Child Care. 505~ Employer, .. 5177 

Contribulioru 5053 Repairs and Improvemenl!, 5178 

RetOlilel1l' Exci.loC: Ta>:. 5054 

Till< Calendar and Check LUI 

5179
 

Manu(a.ClurCfll' E~ T<lJl. 5055
 Parlner1lhi~. 

Corporaliollll. 51BD 

Excise Tax on CommunkaSale of a Business. 51g1 tiong. 5056
 

Commnllily Properly .. 5191
 Occupational 5111mp Ta>:es .. ,,>057
 

If Your Return is Examined. 5202
 Ta>: on Admissions and Dues, 5059
 

Inyesunent Income.
 5060 Documentary Stamp TOIxes , . 5286 

Appendix 115 

New and Revised Tax Forms Issued 

Forms for ....hieh special automatic data processing versions were 

prepared: 

Prr/od C"",,<4 b~ u.t FII,,,, N"mblr ~'o''''

940.-Employer's Annual Federal Unemployment Ta>: Return, Calendar y~ar

1961 

941.-Quarterly Report of Wages Taxable Under Th~ F~derlll hI quarter 

Insurance Contribution Act. 1962 

720.-Qullfterly Federal Excise'Tax R"'tum. ht quarter 

1962 

cr-1.-Employer's Quarterly Railroad Retirement Tllx Relurn . ' hI quarter 

1962 

2290.-Federal Use Tax Return 011 Highway Malar Vehicles, Fiscal y~ar

1963 

Other: 

Form 3227.-Application for Account Number, was created to aid 

the taxpayer to secure an account nnmber in those cases ....here no number was shown on the return. 

Form 2952.-Infonnation Return by a Domestic Corporation With 

Respect To Controlled Foreign Corporations, was created as lhe r~ult of 

legislalive amendmenlS. 

Form J040.-U.S. Individual Income Tax Return. The format for 

the individual return was amajor change. While some taxpayers were 

obviously disappoimed with the end ((Snit, we were most pleased .... ith 

the many complimentaf)· letters received.. Eight major improvements 

made in the 1961 form and instructions are as follows: 

1. The two·page form objective wasrealized. 

2. Form 1040W was eliminated and the number of individual 

forms from which a taxpayer must choose to repon his income was 

reduced from three to two. 

3. The arrangement of the package was revised to pennit the 

removal of individual fonns. In prior years the taxpayer removed 

forms and schedules in bnlk from the middle o( the tie package. 

4. Instructions were placed immediately after each form or 

schedule. 

5. There were many technical improvements. First and of most 

importance, the tax compntalion was placed on page I rather than 

divided between pag~ I and 2. All exemption entri~ were placed 

in one schedule rather lhan divided between pages 1 and 2. As a 

r~uh of lhC'>C and other changes, there is less need for the preparer 

to move back and forth between pag~ of the fonn and schedul~.

iiMi;. Ul;.o.:-L,•.. _ ,'_ ~utdfr!H2r* f ....· 

J,'"
, 

116 Annual Report

6. The form was revised so that the nct capital gain or loss from 

the sale or exchange of property is now transferred from separate 

Schedule D direct to page 1 of the Form 1040 rather than to page 3 

and then to page 1 as part of the lOlal of other income as was formerly the casco 

7. The size of type and space hetween type characters was cnla,rged for better reading. 

B. Material having minor application was eliminated from the 

instructions. 

Form l065.-U.S. Pannership Return of Income. The Deprecia· 

lion Schedule (Schedule I) was revised to reflect the step-by-step treat­ I 

:::~ ment of the additional first-year depreciation. 

Form'116.-Statemcnt in Snpport of Credit Claimed by an Individual or Fiduciary for Taxes Paid or Accrued to Foreign Countries or 

Possessions of the United States. Thc rcvision of this fonn was required 

by legislative amendment. The revised format is in a columnar style 

which we believe simplifies the computation of the credit where taxes 

have been paid to more than one country. 

Form IIIB.-Statement in Support of Credit Claimed by Domestic 

Corporation for Ta.xcs Paid or Accrued to Foreign Countries or Posses· 

sions of the United States. The revised fOlm and fonnat follows Fonn 

1116. • 

Selected Regulations Published 

Income Tax Regulations 

TreasurJ' Decisiorl 6575 eonta"ins the regulations, iSsued under Public 

Law 87-312, which inform mine owners or operators mining brick and 

tile clay, fire cla~', or shale used by them in the manufacture of building 

or paving bricks, drainage and roofing tile, sewer pipes, flm\ler pots, and 

kindred' products, how, when, and where to makc the election to usc thc 

more liberalized depletion allowance, and how to compute the gross 

income from the property for taxable years beginning prior to January 1, 

196 I, for which the election is effective. Published October 12, 1961. 

Treasury Decision 6579 contains the amendment to the regulations, 

io;sued under section 179 of the Code, which provides that the -election 

for the additional first-year depreciation may be made on the taxpayer's 

income tax return, rather than by filing a separate statement. Published 

November 7,1961. 

Treasury Decision 65B3 contains the regulations, issued under Public 

Law 87-321, which inform taxpayers as to how, when, and where to 

make the clectior:a to treat a.~ allowable mining processes .the crushing, 

• 

.,... *""

Appendix 117 

grinding, and separation 01 the clay or quartzite from waste, and how 

to compute the gross income from the property for the taxable years 

beginning prior to January 1, 196J, for which the election is effective. 

Published December 16, 1961. 

Treasury Decision 6591 contains the regulations, issued under section 

455, which prescribe how, when, and where a taxpayer may elect with 

respect to a trade or business, in connection with which prepaid subserip. 

tion income is received, to include such income in gross income for the 

taxable years during which the taxpayer's liability exists to furnish or 

deliver a newspaper, magazine, or other periodieal, and the manner of 

computing the amount of prepaid SUbscription income that is to be 

ineluded in gross income lor a taxable year. Published February 27, 

1962. 

Treasury Decisiorl 6593 contains the amendment to the regulations, 

issued under section J63, which provides that Maryland ground rent 

paid or accrued on or after January 1, 1962, is deductible as interest only 

if such ground rent must be redeemed by a fixed date; otherwise it is 

treated as rent and is deductible only to the extent sueh rent constitutes 

a proper business expense. Published March I, 1962. 

Treasury Decision 6595 eontains the regulations, issued under sections 

269 and 482, which provide the manner for disallowing a deduction, 

credit, or other allowance if the principal purpose or acquisition is the 

evasion or avoidance or Federal income tax by securing the benefit of a 

deduction, credit, or other allowance whieh such person or corporation 

would not other'o'.'ise enjoy; and for allocatiug income and deductions 

among related taxpayers where such allocation is neeessary to prevent 

evasion of taxes or clearly to reflect income. Published April 14, 1962. 

Treasury Decision 659B containsJhe regulations, issued under sections 

856,857,858, and various other sections, which prescribe what is a real 

estate investment trust, how it must operate, and the method of computing 

the tax on the trust income. Published April 28, 1962. 

Temporary Regulations 

Treasury Decision 6596 contains the temporary regulations, issued 

under section 456, which infonn certain membership organizations as to 

how and when to make the election to defer the reporting of prepaid dues 

income, which relates to a liability to render services or make available 

membership privileges over a period beyond the close of the taxable year 

of receipt, and not exceeding 36 months; the scope of such election; and 

how the speeial transitional rules contained in section 456 will operate. 

Published April 17, 1962. 
Annual RepoTt lI8 

Alcohol and Tobaeco Regulations 

Treasury Decision 6566 amended the Wine Regulations [0 permit the 

removal with activated carbon of excess color from white wine and to 

enable proprietors to conduct other operations on their bonded wine 

cellar premises. ' 

Treasury Decision 6588 amended the Regulations relating to Exportation o! Liquors primarily to conform them to amended provisions of the 

Tariff Act of 1930 as to supplies on certain vessels and aireraft, and to 

eliminate the special labeling of bottled wine exported with benefit of 

drawback. 

TreasuT"j! Decision 6571 improved the procedures in conneetion with 

the release of imported tobaeco materials from customs custody, without payment of tax for delivery to dealers in tobacco materials. 

Pur~uant to a public hearing held dUling the fiscal year, the distilled 

spirits labeling regulations (27 CFR Part 5) were amended by Treasury 

Decision 6597 to raise th~ barreling proof of whisky from 110 to 125 

degrees. This amendment will materially reduce eooperage and warehou;;e eost., for the industry. 

Treasury Decision 6601 amended the standards of fill provisions of 

the Di.,tilled Spirits Labeling and Advertising Regulations (27 CFR 

Part 5) to authorize the use of ~-pint bottles for. the packaging of-all 

classes and types of distilled spirits. The regqlations prior to th~ amendment limited the use of '}Is,pint containers to the packaging of Seoteh 

whisky, Irish whisky, brandy, and rum. (Standards of fill are not applicable to cordials, liqueurs, highballs, bitters, and other speeialti('s.) 

This disposes of the hearings held in 1960 on the question of authorizing 

additional bottle sizes. 

Documenlary Stamp Tax Regulations 

Treasury Decision 6589 eontains the Documentary Stamp Tax Regulations iswed a.s Part 47,Title 26, Code of Federal Regulations, which 

were prescribed under chapter 34 of the Code as amended by the Excise 

Tax Teehnical Changes Act of 1958 and subsequent amendments, and 

are generally applicable to transactions occurring on or after January 1, 

1959. These regulations supersede the Documentary Stamp Tax Regulations issued in ,Part 43, Title 26, Code of Federal Regulations. Published February 7,1962. 

Significant Revenue Rulings and Procedures 

Whether or not an election to use the alternate valuation method for 

Federal ('state tax purposes has been made must be detennined from all 

the facts on the return; the mere failure to designate the election on the 

rtli.,'~"""_.: _~:, z~;;io-W'i¥! b;-' 

Appendix 119 

return will not necessarily preeh~de the use of -that method (Rev. Rut. . . 61-12B,I.R.B.1961-2B,7). 

An up-to-date compilation of guides applicable to the qualification of 

stock 'bonus, pension, profit-sharing, and annuity plans under section 

401 (a) of the Code has been prepared (Rev. Rut. 61-157, I.R.B. 

1961-35,5). 

Oil water heaters of the pressure gun type are presumed to be subject 

to the manufaeturers tax if they have either (1) a storage eapacity of 

50 gallons or less or (2) a recovery rate of 150 gallorui per hour or less 

based on a 100-degree Fahrenheit rise (Rev. Rul. 61-202, I.R.B. 

1961-46, 9). 

For purposes of various excise tax exemptions, an organization which 

presents formal instruction to mentaUy handicapped children under prescribed conditions comes within the seope of the term "nonprofit edueational organization"; ~owever, an organization operated primarily as a 

residential faeility for handicapped children does not come within the 

scope of thatterrn (Rev. Rul. 62-6, I.R.B. 1962-3, 12). 

The filing of an information return (Foml 990, 990-A, or 99Q-P) 

under section 6033 of the Code by an exempt organization does not start 

the runn'ing of the stattite of limitations on assessment of the unrelated 

business income tax imposed by section 511 and required to be reported 

'on Form 99Q-T (Rev. Rul. 1962-10, I.R.B. 1962-4, 14). 

The communications tax on wire and equipment service does not 

apply to amounts paid for musical program service transmitted by radio 

circuits; however, on and after January 1, 1959, such amounts are subject to the tax on wire mileage service (Rev. Rul. 62-11, I.R.B. 1962-5 

22) . 

An amended return fil¢ after June 22, 1959, correcting the taxpayer's method of reporting dealer reserve income for "his most recent taxable year," did not have the effect of invalidating hi~ election under 

section 4 of the Dealer ReServe Income Adjustment Act of 1960 for the 

years 1956 and 1957 (Rev. Rul. 62-30, l.R.B.1·962-ll, 14). 

A clinic operated for eharity and not lor profit may furnish medicines 

made with tax-free alcohol to its patients for use off the premises of such 

clinic, even though the patients may pay a registration fee which entitles 

them to all the serviees of the clinic (Rev. Rut. 62-36, I.R.B. 1962-1], 

18) . 

A small business investment company is not entitled to the benefits of 

seetions 1242 and 1243 of the Code while its license to operate under 

the Small Business Investment Act of 1958 is under suspension by the 

Smalf Busines.., Administration (Rev. Rul. 62-58, I.R.B. 1962-17,7). 
120 Annual Report 

The Revenue Service has deseribed the effect of a statutory merger or 

eonsolidation on the employment tax liabilities of the absorbed and resulting corporations, particularly as it affects the definition of "employer" 

for ~redit purposes (Rc\'. Rul. 62--60, I.R.B. 1962-19, 19). 

The Revenue Service has reviewed its alcohol tax Revenue Rulings 

and !iSlS lhose which have been dClermincd 10 be now obsolete (Rev. 

Rul. 62-75, I.R.B. 1962-22,13). 

An organization exempt under section SOl (c) (3) of the Code may 

make gifts La State or municipal instrumentalities ....,ithou! jeopardizing 

its exempt status, provided such gifts promote its tax-exempt purpose 

(Rev. Rul. 62~78, J.R.B. 1962~22, 9). 

The Revenue Service has outlined the tax treatment of payments received by timbcrland owners from two long-term contraets granting 

timber rights to a paper company (Rev. Ruls. 62-81 and 62-82, I.R.B. 

.1962~23, 5 o"d 8). 

The retaile~ tax applies to the fair market value of taxable artieles 

transferred by a retailer to eustomers in exchange for eoupons which 

hnd been distributed by the retailer with his sale of noma:'(able products 

(Rev. Rul. 62-90, I.R.B. 1962-25, 19). 

The deduction for depreciation of an asset in the year of disposition 

is limited to the amount by which its adjusted basis at the beginning of 

the year exceeds the amount realized from sale or exchange (Rev. Rul. 

62~92, .1.R.B. 1962~26, 9). 

A schedule of revised average useful lives has been prepared for use 

a~ a guide in eomputing depreciation for selected major items of textile 

Olnchinery and equipment; the effect of the issuance of the schedule on 

the rern<lining useful lives of such items now in usc is explained (Rev. 

Proc. 62-1, I.R.I3. 1962-1, 11). 

. Procedures have beeu prescribed for district directors to pennit the 

in~pection and to furnish copies of tax returns and rclated·docume.nts 

filed under the 1954 Code (Rev. Proc. 62-9, I.R.B. 1962-10,18). 

The Revenue Service has outlined requirements to be met in order 

for n IIl<lTmfacturer to obtain authorization to m<lnufaeture and lease 

meter machines to vend documentary tax stamps; also established are 

standnrds and instructions governing their use by lessees (Rev. Procs. 

62-15 and 62-1 6, I.R.B. 1962-;-25,31,36). 

Significant A nnouncements of General Interest 

Income tax (arms to be used by citizens, residents, and corporations 

in pursuing claims for refund, reduced tax rates, cxemptiom, etc., {rom 

m<lny of the countries having tax conventions with the United States, are 

available from the Offiee of International Operations 111 Washington, 

D.C. (Announcement 61-B3, I.R.B. 1961-39, 19). ... .k...... ·o.~~.~,-'·.....·_ . 

Appendix 121 

A pamphlet explaining how self-employment tax applies to farm 

rental income received by fann landlords and how such income affects 

their social security payments is available from local offices of district directon; (Announcement 62-15, I.R.B. 1962---6, 48). 

The index to administrative and procedural matters, other than those 

prescribed by regulaLions, whieh have been published in the Internal 

Revenue Bulletin sinee 1952 has becn brought up-to-date (Announeement62~17,l.R.B.1962~7,5).

Taxpaye~ should include their social security numbers on their income tax returns and Declarations of Estimated Tax due by April 16, 

1962; applieation fonTIS will automatically be mailed to those who do 

not report social sccurity numben; (Announcement 62-18, I.R.B. 

1962~8, 20). 

The Revenue Service has listed all taxpayer information pamphlets 

on speeific subjects which are available from distriet directors upon request (Announcement 62-21, I.R.B. 1962---8,22). 

A brief summary of the various records required to be retained for 

Federal tax and other purposes has been published in the Federal Register as the current Guide to Record·Retention Requirements (Announeement62-42, I.R.B.1962-17, 14). 

Significant Technical Information Releases 

Offers in compromise of liquor law violations submitted and aecepted 

on or after August 1, 1961, are available for public inspection (T.I.R. 

330, B~I~61). " 

Organizations seeking exemption undcr section 501 (c) (3) of the 

Code arc urged to conform their enabling instruments to the requirements of the organizational test provided by statute and thus avoid considerable delay in processing their applications, for exemption (T.I.R. 

359, 1~18~62).

Where an independent contr~ctor receives stock or Olher property as 

compensation for services rendered, he must include in his gross income 

lhe difference between the market value thereof and the amount he paid 

for it (T.I .R. 369, 3-15-62). 

The Revenue Service explains the responsibilities of taxpayers and 

paye~ of di"idcnds, interest; and other income subjeet to reporting on 

in(ormation returns, with respeC[ [Q identif);ng numbers to be used on 

Federalta." and infonnation returns (T.I.R. 374, 3-30-62). 

Casualty losses sustained in certain disaster areas after December 31, 

1961,.and prior to the due date for filing 1961 tax rcturns may be deducted for the 1961 tax year (T.I.R. 376,4-5-62). 

Taxpa)'e~ wishing to exercise the special election eonceruing the computation of "gross ineome from the property" for percentage depletion 
iJ, " 

122 Annual Report 

purposes, with respect to certain clays and shale used in the manufacture 

of eertain products lor taxable years beginning before 196J, must do sci 

by December II, 1961 (T.I.R. 342,10-16-61). 

In determining whether an employee is deemed to have been required 

to account to his employer for travel expenses in accordance wi~h Revenue' 

Ruling 58-435, the inereased Government travel allowances authorized 

by Public Law 87-139 are effective as to allowances for travel performed 

on or after August 14, 1961 (T.I.R.340, 10-9--61). 

An election to aggregate mineral interests will not be invalidated by" 

the mere failure to submit therewith an amended return, or claim for 

refund or credit, or the details and computation of depletion allowable 

for the taxable period subsequent to the first taxable year for which the 

election is applicable (T.I.R. 337,9-13-61 ).' 

Supreme Court Decisions 

Civil Cases_ 

On December 18, 1961, the Supreme Court issued two opinions in tax" 

cases" In Grover D. and Ruth H. Turnbow v. Commissioner of Internal-l 

Revenue, 368 U.S.)37, the Qourt affirmed the Court of Appeals for the ,i 

Ninth Circuit and held that, in an exehange of all the stock of one corpora~

tion [or voting stock of another plus cash, section J.l2 (c) (1) of the 

Internal Revenue Code of 1939 does not allow postponement of gain 

attributable to the stock received in the exchange. - Section 112 (e) (1 ) 

does not apply unless there has been an actual "reorganiza-tion" as 

defined in section 112(g)(I)(B). / 

On the same date the Court decided the case of United States v. 

Union Central Life Insurance Co., 368 U.S. 291, reversing 

the Michigan Supreme Court and remanding the case to that 

court. The Michigan Circuit and Supreme Courts had held that the 

federal tax lien was subordinate to.. the mortgage of the life insurance 

company, even though such lien arose subsequent to the tax lien, because no notice of the federal tax lien had been filed in the office of the 

register of deeds as required by Miehigan law. The Government had 

argued that, since the office of the register of deeds refused to aceept 

notices of tax lien for filing because they did not contain a legal description of any land, such notices were filed in the office of the clerk of !he 

United States district court for the judicial district in which the property 

subject to the lien was situated, pursuant to the provisions of the Internal Revenue Code relating to such filings where a state or territory 

has not "authorized" the filing of such notices in an office within the 

state or territory. Inasmuch as the filing of the notice of tax lien in the 

office of the clerk of thc appmpdate United States district court had occurred prior to the execution of the mortgage the Government rnainAppendix 123 

tained that its tax lien should be accorded priority over the mortgage. 

The Supreme Court stated that the Michigan law authorizing filing of 

a notice of tax lien only if a description of the property was 

given "* * * placed obstacles to the enforcement of federal tax 

liens that Congress had not permitted, and consequently no state office 

was 'authorized' for filing within the meaning of the federal statute." 

On March 5, 1962, the Court decided the cases reported sub nom. 

Simonson v. Granquist, 369 U.S. 38, reversing the "decisions of the 

Court of Appeals for the Ninth Circuit (287 F. 2d 489, 491) which had 

held that federal tax penalties which were secured by liens were allowable in bankruptey proceedings despite the general prohibition against 

the allowance of federal or irt,,-!te statuto!)' penalties contained in section 

57j of the :Qankrnpt~y Act. The circuit court had allowed the tax 

penalties in a liquidating bankruptcy proeeeding and in a corporate reorganization under Chapter X of the Bankruptcy Act. The majority 

opinion (Justices Frankfurter and Harlan dissenting) stated that the 

language of section 57j "* * * is itself a more dependable guide to its 

meaning than this argumeut [the Government's section-by-section analysis of the Bankruptcy Act tending to show that 'claims' as used in section 57 meant only unseeured claims] from the general strueture of the 

Bankruptcy Act. Unquestionably that language is broad enough to bar 

all penalties, whether secured by lien or not, and we think the section was 

designed to do precisely that." 

In Commissioner of Internal Revenue v. Sally L. BiJder, 369 U.S. 499, 

decided on April 30, 1962, the Court"reversed the decision of the Court 

of Appeals for the Third Circuit, which had held that amounts paid 

by the taxpayer in 1954 and 1955 as rent for an apartment in Florida 

were deductible as "medical expenses" nnder section 213 (e) ( 1) of the 

1954 Code. Although the Commissioner acknowledged that the taxpayer's trips to Florida were for the purpose of alleviating a heart ailment 

and were not in any sense for vaeation, the Supreme Court held that this 

rental expense was nondeductible. The Court fnrther held that Congre.'lS 

intended to change the 1939 Code, which allowed such deduction, when 

it enacted this section of the 1954 Code. 

In Hanover Bank, Executor, et al., v. Commissioner of Internal Revenue, 369 U.S. 672, decided on May 21, 1962, the Court reven>ed the 

Court of Appeals for the Seeond Circuit and held that a taxpayer may 

utilize the special call p~ice of a bond in computing his dednction for 

amortization of premium uuder section 125 of the Internal Revenue 

Code of 19~9 and is not limi[ed to the higher general caU price. 

On May 28, 1962, the Court decided the case of Enochs v. Williams 

Packing & Navigation Co., Inc., 370 U.S. 1; reversing the Court of Appeals for the Fifth Circuit and remanding the case to the district court 
125 124 Annual Report 

with directions to dismiss the complaint. The district court had granted 

the eorporation's plea for a pennanent injunction restraining the District 

Director from the collection of past due social security and unemployment 

taxes on the ground that they were not, in fact, payable and because 

collection would allegedly destroy the corporatiou's busines.~. In doing 

so it had relied on the case of Miller v. Standard Nut .~fargarine Co. 

(1932),284 U.S. 498, where the Supreme Court had held that an injunction would issue despite the statutory prohibitjon against snits for the 

purpose of restr<;lining the assessment or collection of any tax. The circuit 

court affinned the district court. The Supreme Court, in fC"eniing the 

eireuit court, stated in addition to a ~owing that the taxpayer had an 

inadequate legal remedy and would suffer irreparable injury if collection 

of the alleged tax were e.ffected, there must also be a showing that co•• * 

it is clear lhat under no cireumstanees could the Govcmment ultimately 

prevail· if *." The Supreme Court held that a suit for an injunction 

may be maintained ouly "if i.' * if it is • .jl. .jl. apparent [from the infonnation available at the time of the suit] that, under rhc most liberal 

view of the law and the facts, _thc United States cannot establish it:> 

claim .jl. • *." In this case the respondent corporation had maintained 

it was not an employer and therefore not liable for the taxc~. The evidenee was conflicting on this issue so that it could not be said that it was 

"apparent" that "under no circumstances" could the Government establish· its claim. 

In Unitcd SJaler v. T. C. Dauir, 370 U.S. 65, decided June 4, 1962, the 

Court revened the Court of Claims and held that the transfer of 

appreciated property to a fanner spouse incident to a divorce 

propert)' settlement is an appropriate taxable -event and that 

gain to the tramferor ean properly be measured by tile excess of the 

property's fair market ,'alue oyer basis. The decision lhus adopts a rule 

long believed settled, Commissioner v. Mcrta, (C.A. 3d 1941.) 123 F. 2d 

986, and Commifsioner v. Halliwell, (C.A. 2d 1942) 131 F. 2d 642, 

but recently made uncertain by the decision in Commirrioner v. MaTfh. 

man, (C.A. 6th 1960) 279 F. 2d 27, and the decision below in this case. 

The Court found support for its holding that a taxable event occurred, 

as did the Service in pressing for review, in the long-standing administrative ·practice and the corollary likelihood that numerous taxpayen; have 

entered into property arrangements in reliance on such a praetice. The 

Court also n"cognized that a contrary holding would leave unsettled the 

question of the transferee spouse's basis in the property. The basis 

question, exemplified by Commissioner v. Patino, (C.A. 4th 1950) 186 • 

P. 2d 962, and Aleda N. Hall v. Commissioner, (1947) 9 T.C. 53, a 

reviewed decision, ....'as a key administrative factor impelling the Service 

to recommend a request for Supreme Court review. 

• 

Appendix 

By the same opinion the Court uphcld the Service's disallowance of 

attorney's fees paid by lhe plaintiff to his wife's attorney for tax advice 

rdating to the divorce and property settlement. The Court held that 

section 212( 3) of the Code, providing a deduction for amounts expended 

in connection "with the determination, collection, or refund of any tax," 

applies only to amounts paid by the taxpayer for advice to himself. The 

Court, however, expressly intimated no opinion as to the deduetibility in 

the situation here of amounts paid by the plaintiff for tax advice to 

himsclf. 

Criminal Cases 

In the case of Gilbert v. United States, 370 U.S. 650, decided June 26, 

1962, an accountant handling income tax matters lor others had endorsed 

refund checks payable to clients wilh [he clients' names followed by his 

own name as "Trustee." The Conrt held that forgery in an agency 

endorsement is not a crime under the Federal statllle;blll granted a new 

trial to afford the Government an·opportunity to prove that the defendant 

did not sign his clients' names in a representative eapacity. 

In Shotwell Manufacturing Company v. United States, December 18, 

1961, 368 U.S. 946, the Court granted ccrtiorari to review the findings of 

lower courts that the original ~onviction of thejefendants for failure to 

report black market receipts was not vitiated by their alleged voluntary 

disclosure. An allegation by the Government ol newly discovered evidence had previously led the Supreme Court to remand the case for 

determination of this issue (355 U.S. 233). 

Olber Actions of Ihe Supreme Court 

On October 16, 1961, the Court, in the case of Goodman v. United 

States, et a1., 368 U.S. 14, in a per curiam decision, vacated the judgment 

of the Court of Appeals for the Fourth Circuit and remanded the case to 

the district court to permit the Government to withdraw its application for 

an order directing the petitioner to testify. The district court had ordered 

the petitioner to testify in" Tax Court procc;=eding involving his former 

employer despite his elaim of constitutional privilege against self-incrimination; the Court held that, if a continuing conspiracy had existed, it 

had ended in 1950 when the petitioner had terminated his employment 

and that prosecution for that crime, and possible other related crimes, 

was now barred by the appropriate statutes of limitations. The circnit 

court, with one dissent affirmed, in part, (289 F. 2d 256), but ordered 

the case remanded to the district court to pennit the Government to 

prove that no prosecution had been begun during the statutory period, 

an essential element of proof in overcoming the sell-incrimination plea. 

After the filing of the writ of certiorari by the petitioner, a re-examination 
._. . ".-.~- ,.. _-=-- - '-'~--------

Annual Report 126 

of the case disclosed information that. there may have been eontacts 

between the petitioner and his fonner employer subse·quent to 1950, 

although the petitioner himself had denied such renewe9 contacts, so 

that it could -oot be said that there ,";as no p~bility of incrimination. 

In the light oLthdrepTesentations by the Solicitor General and upon , 

consideration of the entire. record, the Supreme Court vacated the judg- - f 

ment of the circuit court and 'remanded ·the case to the district eourt. 

On December 18, 1961, in a per curiam decision, the Court, in the 

case of Crest Finance Co. v. United Siales, 368 U.S. 347, vacated the 

judgment of the Court of Appeals for the Seventh Circuit in favor of 

the Government, and remanded the case to that Court. The circuit 

court, in affinning the district court, had held (291 F. 2d 1) that the 

liens of the finance.company on the accounts receivable which had been 

assigned to it by the taxpayer to secure certain loans from the finance 

company'to the taxpayer, were not "choate" and perfected as those 

terms had been defined by the Supreme Court and that consequently 

the federal· tax liens, although arising subsequent to the dates of the 

assignments, were entitled to priority. The arguments of both the Government and the finance company had related to the matter of whether 

the assignments were valid pledges, a question which the circuit court 

found unnecessary to answer. Alter the finance company had petitioned for a writ of certiorari the case was re-examined and the Government conceded that the finance company's liens were choate at the 

time of the asses:ment of the federal taxes. The Supreme Court 

agreed and vacated the judgment of the circuit court and remanded the 

case. 

On June 18, 1962, in the case of Rudolph v. United States, 370 U.S. 

269, the Court dismissed the writ of certiorari as improvidently granted. 

The lower courts had held that the value of the all-expense trip to a 

company-sponsored insurance convention constituted gr~ income to 

the taxpayer-insurance agent and that such amount ....·as nOl deductible by taxpayer as an ordinary and necessary business expense. The 

Court stated that the case was governed by the "dearly erroneous" rule. 

The separate opinion of Mr. Justice Harlan suggested that the case 

should be decided on its merits and stated that the conclusions of the 

lo~er courts were unassailable. The di!'..".Cnting opinion, filed by Mr. 

Justice Douglas and joined in by Mr. Justice Black, stated lhat the 

value of the trip was not income within the meaning of the Code aud 

that, if income, the expcnses were plainly deductible. 

• Actions of Lower Courts 

The COUrl of Appeals for the Second Circuit affinned the convictions 

of both a father and son for .making false statements, United Siales v. , 

Appendix 127 

McCue 301 F. 2d 452. It w:tS held that the eonvictions did not eonstitute double jeopardy as to either defendant and that the Cow:rnment 

was not estopped to initiate the prosecutions where thc fathcr, who had 

been indict.ed with his son for attempted income tax evasion, had been 

allo.....ed to enter a nolo contendere plea to the lesser offense of willful 

failure to supply information. The Circuit Court pointed out that the 

false statements made by the defendants in 1954 were not referred to at 

any time during the earlier procecd.ings in .....hich thc plea of nolo contendere was made. Certiorari w~s denied by the Supreme Court. 

The Court of Appeals for the Ninth Circuit, 297 F. 2d i60, affirmed 

the eonvietion of Meyer (Mickey) Cohen on charges of willful filing of 

fraudulent income tax returns, willfully attempting to evade and defeat 

the payment of income taxes, concealment of propcrty on which a levy is 

authorized, and making a false statement. It was held that the newspaper publicity given the case did not require a mistrial in vie..... of repeated admonitions to the jury to avoid newspapers carrying publicity 

of the trial. Cohen was not placed in double jeopardy by prosecution for 

evading payment of income taxes, although he had been previously eonvicted of defeating and evading the same taxes. Certiorari was denied 

by the Supreme Court. 

The Court of Appeals for the Ninth Circuit, 298 F. 2d 622, also 

affinned the conviction of Dave Beek on two counts of willfully aiding 

and assisting in the preparation of false Form 990 infonnation returns for 

a tax exempt labor union organization. However, the Court reversed 

~nd remanded for a new trial the four eounts on which Beck wasconvieted 

of evading his personal income taxes. In the latter eonnection it was held 

that the charge to the jury on the question of embezzled funds was not 

adequate in \·ie\.,. of the Supreme Court decision in Jamesv. United Stales 

(366 U.S. 2l3). The Court also found that the widespread publicity 

given to Beek's affairs did not prevent a fair consideration of the case by 

the grand jury or trial jury. The Supreme Court denied certiorari as to 

the counts on which the conviction was affirmed. 

Michael "Trigger Mike'· Coprola, of Ncw York and Miami Beach, 

Fla., after a mistrial due to pl'ejudicial news publicity read or listened to 

by members of the jury, pleaded guilty to evading income taxes aggregating approximatcly $385,000 due for the years 1956 to 1959, inclusive. 

Coppola has been described publicly as "one of the nation's more notorious hoodlums." He was sentenced to serve I rear and 1 day on each of 4 

counts, to 11.10 consecutively. Sentence was :'iuspended on 3 of the counts, 

and he was placc:d on probation for 4 years commcncing upon release 

from incarceration. He was also fined a total of $40,000. 

In U.S. v. Haith (C.A. 4.19(1) 297 F. 2d'65, cert. den. 369 U.S. 

804, [he seizure and subsequent search of a "ehicle wilhout a search .....arO~800' Q---(lZ- " 
":"--":="'..:- :.-.: 

i 

Annual Report Appendix	 129 128 

-..:::::::;.=, r
 

require dismissal of the forfeiture aetion. j The Court of Appeals for the First Cireuit deeided, in Interbarlolo v. 

.U.S., May 22, 1962, 303 F. 2d 34, a question relating to forfeitures in 

the w!lgering tax field raised as a result of the holding of the.Supreme 

Court in U.S. v. enlamOTO (1957) 354 U.S. 351, that a so-called "pickup man" is not subject to the wagering tax. The Circuit Court held that 

a vehicle used by a "pick-up man" to transport wagering paraphernalia 

with the knowledge and eonsent of the owner is subject to forfeiture, 

notwithstanding the fact that the "pick-Up man" himself is not required to • 

pay ~he tax. 

The Government was 1I0t succeM1ul, however, in attempting to forfeit 

equipment and materials held by a dealer for sale to individuals for nse 

rant, independently of the arrest of the violator, was upheld on the 

grounds that the agents had probable eause for the search. The defendant, while conceding that the seizure .was valid, contended that the 

officers should have obtaincd a warrant for the subsequent search of thc 

vehicle. The Court dismissed this conteution, holding that once the 

vehicle was lawfully seized and forfeited to the United States because 

of its use in violation of the revenue lav.'s, the former possessor had no 

remaining rights for which the Fourth Amendment provides protection. 

In Monnette v. U.S. (C.A. 5, 1962) 299 F. 2d 847, it was held that lhe 

action of an agent in going qn the grounds surrounding a building used 

as a still site, in order to eonfirm another agent's detection of the odor of 

fermeuting mash, did not violate'thc defendant's constitutional rights and 

did not invalidate a search warrant is.'iUed on the basis of the officer's 

affidavit. 

In Carnes v. U.S. (C.A. 5, 196\) 295 F. 2d 598, cert. den. 369 U.S. 

861, the Court held that tape recordings made by an undercover Federal 

im'estigator of his telephone conversations .....ith a violator were admissible 

in evidence agains~ the violator. The Court rested its deeision on Rath· 

bun v. U.S., 355 U.S. 107, and distinguished this case from the "spike 

mike" case (Silverman v. U.S., 365 U.S. 505). 

The ancient but considerably tarnished Coffey case (Coffey v. U,S. 

(1886) t 16 U.S. 436) has again been raised \;Jy a defendant who urged 

his acquittal in related criminal proceedings in an attempt to block the 

Gm·emment in a subsequent proceeding to forfeit propert~' used Dr intended to be used in illicit whisky production. Once again, the courts 

have found a basis for holding that Coffey was not applicable. fn U.S. v. 

Burch (C.A. 5, 1961) 294 F. 2d 1, the Court held that the defendant's 

acquittal in a conspiracy prosecution, because of lack of evidence to connect him with the conspiracy, did not constitute an adjudication of the 

issue as to whether he possessed the libeled sugar with the intent that it 

be used in the manufaeture of nontaxpaid whisky and, therefore, did not 

in the prodnetion of "home brew." In U.S. v. One Five-Gallon Crock, 

ele. (USDC, SD Ohio, Civil Docket 2647), the District Court dismissed a 

libel filed against such equipment. Clarifying amendmentsto the Code 

have been proposed, which, if enacted, will clearly prohibit such manufacture and thus remove any question asto the Service's consistent position 

that the manufacture of "home brew" is illegal. 

In the past year, taxation of imported dislilled spirits was again challenged as discriminatory and again successfully defended. The Customs 

Court reaffirmed its prior holding in Bercut-Vandevoort and Co., Inc. v. 

U.S., 46 C.C.P.A. (Customs) 28 that the laxation of imported distilled 

spirits, withdrawn below proof, on a wine gallon basis, did not constitute 

a-discrimination in favor of domestic products sueh as is prohibited by 

Article If of the General Agreement on Tariffs and Trade (GAIT), and 

applied the same reasoning in disposing of the claim that the General 

Agreement had the effect of freezing internal ievenue laxes on impons at 

the rates applicable when the Agreement became effective. Hulse Import 

Co., et al. v. U.S., U.S. Customs Court, Third Division, May 7, 1962, 

C.D. 2338. 

In another important Customs ease, Don IV. Sn}'der Co. v. US., U.S. 

Customs Court, First Division, May 17, 1962, C.D. 2343, the Court 

refused to follow the decision of another division"of the Court in a previous 

case (Hulse Import Co. v. U.S., U.S. Customs Coun, Third Division, 

May 31,1960, C.D. 2182), whieh allowed drawback, under the Tariff 

Act, of the internal revenue tax on imported beer which had been subsequentlyexported. fn the Snyder case, lhe court pointed out that section 

313 (c) of the Tariff Act of 1930 authorized drawback of duties paid on 

such merchandise but held that, in view of section 528 of the Act, the 

Internal Revenue tax was not _a duty and therefore was not subject to 

refund or drawback under these circumstances. 

Statistics of Income Releases 

Individual fncome Tax Returns, 1959, Preliminary (18 pp., 20 

cents) 

Individual Ineome Tax ReLUrn~, 1959 (157 pp., $1.) 

Corporation Income Tax Returns with accounting periods ended 

July 1959-June 1960, Preliminary (32 pp., 30 eents) 

U.S.	 Business Tax Returns with aecounting periods ended July 

I959-June 1960, Sole Proprietorships, Partnerships, and Corporations, Preliminary (39 pp., 30 cents) 

Statistics of Income publieations are for sale by the Superintendent of 

Docu~ents. U.S. Government Printin£ Office, Washington 25, D.C. 

.' 
._== 

....
 .... 

....

"" .... 

1:1

-
Statistical 

Tables 

• 

NO TES: All ytaf~'1 data are on a fiscal year basis. 

ullfeH otherwise spuified. For example, data headed 

"1962" pertain La iht fiscal year ended June .30, 1962, and 

"Ju~~' 1" im'cntoTy it.'ms under this heading reflect invf/ltories f)J oj July 1, 7961. 

1'1 ma~Y lables anJ (horls, figures have heen rounded Gnd 

TDUlidd 

m(.l)' 

Inlmwl 

no/ 

figuTn. 

add 

rcvemu 

/0 the 

districts 

printed 

orr 

totals 

listed 

which 

ill this 

are 

section 

based on 

by 

un­the 

/lames of headquarters cities. Each distrid is idtnticol with 

the boundaries of the Slate in whir;h the headljuor/nr city 

is located (xupl jar the Statu recopilulatrd at the bollom of 

tables 1, -5, 6, and 74. A map oj Ihf: districts appears all 

page XVIlI. 

a
 

Statistical Tables
 133 

Tabl. Page 

1.	 Internal revenne collections by soun;:e~ and by imemal reveoue regiom, dis-


i>'	 COLLEcnOKS, REFUND~, AND RETURNS FILED 

trict!:, Stales, and other area~ .. 134
 

2. Internal revenue collections by sources aud by quarte1"S.	 150
 

3. Internal revenUe collections by souree•..	 152
 

4. Internal revenue collectiolI5 by principal BDurces, fucal years 1940--62. 155
 

5. Internal revenue refund.'i inclndlng interot.	 158
 

6.	 Number of returns filed by internal rn·enUe regions, districll!, StatCS, and
 

other areas. 160
 

7. Internal revenue lax On manufactured producll! from Puerto Rico. 162
 

, 

Office of the Cilief Counsel
 

STAMP TAXES
 

bacco prodncl:!. ]63 

or use of aleohol and alcoholic liquors. . . . .... , . , .... , .. l62 

ALCOHOL AND TOBACCO TAXES 

8.	 E.stablishments qualified to engage in the production, distriburion, storage, 

9.	 E~tabfuhments qnalified to engage in the production or exportation of to10. Permit'l relating to dilltilled spirits under chapter 51, IR Code... 163
 

11.	 Permit'l for operations relating to alcoholic beverages under the Federal Alcohol Admin~lration Act. 164
 

12. Permit!: relating to tobacco under chapter 52, IR Code..	 165
 

13. Label activity under Fedcral Alcohol Administration Act. 165
 

14.	 Number of occupational tax stamps i5llued, by claM of tax and by mtemal
 

revcou,", region., districts, and States. 166
 

15.	 Appellate Divmon receipts and dispositioos or protl:l!ted incume, profits,
 

CASES RECEIVING ApPELLATE CONSIDERATION OR IN LITIGATION 

e;tate, and gift tax cases prior to i3snance of statutory notice (p~-90-day
 

CllCie.). 174
 

16.	 Appcllate Division receipts and dispos.ltions of protested income, profits,
 

estate, and gift tax cases in which statutory noUce; W["re OUL!laudiug {')Oday c~.)... 174
 

17. Appellate Division l'eCeipCl and dispositions of income, profit'l, Cltate, and 

gift t<1X cases petitioned to the Tax Conrt (docketed caso). 175
 

18. Proce.uing of income, profits, estate, and gift laX case. io the Tax Court. 176
 

19. Result'l	 obtaiued in income, profits, estate, and gift tax C2l.'ies dispooed of in
 

the Tax Court. 176
 

20.	 Receipt and d~posal of TilJ< CQurt CillICS in CQurll! of appeals and in Supreme
 

Court. 177
 

21.	 Receipt and disposal of suits fil"d by ta.'l:payc.rs in Federal conrts and actiom
 

by the United States [or recov"ry of erroncou~ refund.'i . 178
 

22. Decisiom of conrts of appeals and Snpreme Conel in civil tax cases. 178
 

23. Receipt and disposal of culJection, injnnction, ~umrnom, and disclosure cases. 178
 

24. Receipt and disposal of in.olv~ncy and debtor proceedings. . . . . . 17') 

25.	 Receipt and disposal of miscellaneous court cases, lien cases not in cuuet,
 

and noucourt cOUCCtiOIl litigation cascs... _. . 179
 

26. Receipt and disposal of appeal CaliCS.	 179
 

27. Caseload report.	 180
 

COST OF AOMrNI5.TRATION 

28. Obligatio", incnrttd by the Internal Revenne Service.	 180
 

29. Qnalltity and CQn Juristics for printing.	 1112 
--------

----

_____________ •••••••••••••••• 

_________________ 

• ••••••••••••• 

Table 1.-lnlemal runu. calledianl by lourcel and by intemal re't'lilnUII l'lIgion" didricl1, Stalll'l, and other area' 

lin lhovilind. of doll!... See l.ble 3, p. 152, [or lax ral~ .nd lurthar breakdown o[ n.ljonallol.l, by louree') 

Internal r""anue 'egion', di't'i~lI. Slet.... and olhe, ..... ' 

(Sl'le, ,epresenled by ,j;'ll. ~i.I'ictl i"diG,t.d in p>reMh..es: lotl13 lor olhe, Slal.s sil....n 01 bolto'" ollible) 

UnUM 51.t... tot.I••..••..•••.•••. _. --------­

AII.nb _Ion•._._ ••••..••••••••.•••.. ___ 

~~~~i~ih'ii;'-.:::::::: l~j:b~~~}:::::::::::::::::::::::::::::: Columbi.__ _______ ___ So.lh ca,ol'".l- __ .•
 Greensboro••..•••..• !NO'lh Carol,"" ..•."••••••.
 lack'on ____ . _______ • Mi"i"ippi)
 Jackson.ille__ •••.•••. (florid.).•••••..•••. ---- ­ N.sh.iil'•• __ ••••.••• (lennesse.) ---- ­ ._n rOllI...___ ._. _____ . __ . _•••••••.••••. 

Augnst' .••••••••••". !M.ine)_______ --..........­ Bo'lon•. __ •• ___ _____
 8u,jinglon. _.•••••.•• ~.rmonl)____ -.........._-
 Harlfold_. _. ___ .. _____ Co~o.cticuI)_
 

P<I't'mouth•.•••••... !Nev; H.mpshi,e)" •• -- ----- ­ P'o.id,oo. ___ ________ Rhode IsI.nd) ______ 

'0:"1..." ",,,,..... __ •••••••••". _• _________ •• _•••••••••••• " Ch"'IO....""'" ___ (S." (b) below). __ .•

~ii:~i~k":::::::: ::: !W:~~~~~k::::::::::::::::::::::::::: 

Spnngr.eld.•••••. ____ Se" (b) below)•• _..• 'O:lncln....1'"'II"".___ ............____________
 (intinn'li.. __ ••..... _ lsee (I) bilow)____________
 CI."IMd _, ___ ..•..•• S.e (I) below).•.••.•••• _"
 I"d'4n.1polr~ _________ . Indi'na) _____ . _________
 Loui,.ille _____ ....••• !Kentuoky)•••.••••••••• __ •
 P"ke"bu't_ _________ West Virgini.)__________
 RlChmnnd .•.••••••••• (Virginj.)..•••••.••••.•
 rw... _I... ____ • _______ .............

~1!J"~""'~u~.•••••••• ~N.W M••ico)..•.•••________ A"'t,•. __ .•••. _. _____ See (hl b.low~__ • __ Dall" __________ .•••• ~See(h b.jow .•••••.••• __
 lilli. R",~ ....••••• __ Ar••nslS)••• __ " _______
 New Orl.an. ______ .•• (Loui~ian.)___
 Olll.hom. C'11 ••••_._ (Okl'hom.}_.....
 ..... V.... c:I... _'_ • •••••••••••• ~lb'O{...... .. is... \.~below) ••••••••••••• t<'OIlkln........ Soe • bllow)._••,
 

Indi.jdu.1 ineome .nd empl.ym.nl ,..e, 

-_. 

Tolal jolern., Corporalion In,ome III 'evenue colle,· income la.' Income lax nol wilhh.ld .nd R'ilroad Un."",pI01"'.nl ,eh,emenl' , Insn,.nce 

di,a il,T1 

insuron,.'·'· 

lion' Tot.1 withhefd' • ofd.oti ,nd 

,,, (>, 0' (0) (>, (0' '" .......... - ~I, UlI,531
 n.,1,S, nl u, 191, r55 IS,U1,ln eJ,On,IU 564, 3U en,s:!! 

. _______ •...•••..••_._ 1, 1~1, 110 I,Jet,9!! e,329,6!7 1,2'5,115 2,m:rn 1&,19J J7,70

I, 1~2,Ul 237. 061 77l.868 190,011 3,720 6,803 6~9, llt 137,767 e82.879 lZI,124 346,992 4,025 4,138 __ .•••.••••••••••.•• eI2,409 8\,900 77,590 225,649 3,193 ___ • ________ • 2,521,001 306. sa7 421, ~OO 802,109 215.659 577,825 " 8,274 ________ .••••••••••.•••••..• 270,793 3\,972 219.360 72, 168 1-«,902 1,966 '" ---- - -.-,.... I, ~82, 073 m,5~ I, 101. 106 411,473 673,630 9,178 7,824 '" .............._-­ 863,508 159. OJ~ 644,867 1!lCl,759 -«7,433 1,122 5,553 ............. 5,SS3,21e
 1,0&~.3J7 3,UII,1'22 l,9lS,9n. 1S,5n lO,lM 

2e6,845 

'71, 'OS H.551 187,567 52,264 131,385 2,427 1, 591 M.".chusetls) -------.--.............. 2,868,404 583.357 2,039, (,lI3 458,676 1,560,755 4,311 15,941 

102,464 14.l~0 79, 139 n,513 55, I2e ., .................. 1,715.444
 325, ~H 1.171.J88 .lJ(],563 825.028 7,912 8,285 '" ----- -. ~~~ 212,114 30,964 167,490 e2,148 123,349 I, 351 ------............. 381,944
 61,330 2~l. 90(; 67,145 223,340 2,458 __ li,172,2J9 1, 'Il, 911 1,tll,UI B9,!lS "

" 3,11", G2P '.30'.11Z 1'2,111 _____________ ••••• _. 6,575,813 1,494,571 1.330.661 910,051 3, .103, 933 82,971 33,701 

6,812,451 569,541 2,595,8;3 6,032 l5,61l 

1,704.138 3.197.017 1'~}b:m 1. 136. 900 271,962 M9,812 8,803 ______________ • _._. 1,179,877 210,795 640,173 206,364 429,030 on 4,202 ._.............."._ 

'"

.,


11,654,613 2,210,115 G.ln, .111 1,&D,Ii1 s.ns.sos A,lO! eG,.U .......- ..... 2,095,555
 526,245 1.325,804 301,990 1,013,071 9,836 

3,867,806 888,H9 2.461,727 447,989 1,962,067 36, 3~3 16,278 ••••••.••••••••• 2,177,810 353,295 1.453,105 298,927 1,145, Dilt 8,320 

1,689,052 164,980 ~82, 506 152,126 314,587 12,326 3, 467 '" 336,937 47,102 266,320 72,115 191,819 2,317 1,~87,453 230,054 R33, ~39 2O~, 013 599,29.4 18,717 ~, 115 "" _________ ••••••••••.••••••• s,116,m 1, 032, (Jtl 1,219,702 2,5Z7,78! Z7,IU Ie, III 216,260 20,093 3.~~:~~ 54,832 129, IlL ; I. III ._ ••••••••••.••••... 1,985,369 37~, 015 1,200,015 374,945 80.11,589 13,305 9.m 1,509,918 1,155,598 414,426 720,281 1<,658 e.2J4 ••••••••••••••.• 280,519 ~:~ 221,538 lIe,425 135,092 1,844 .............. ----------.
 783,913 132,19.8 544,867 181,868 358,095 '" I.m ••.••••••••• 940,403 159,404 550,203 169,205 376,522 "" 4,007

11,!53,732 3, !2<,en 10, '19,23$ 2,133, SiO 11,511, 531 57,3U 1II.ln '" _~ •••••••••••• 2,031;.221

1,072,388 

281,765 

<91,119 

1,594,711 

747,2e7 

517,682 

101, Ole 1,061,187 

&38,188 

4,507 

2,487 

ll,335 ".

BuN.lo __ ._ •• ___ . ___ (S•• }")b.IOW)•.• _.••.•••••...... __ M.n~.lIan __ _______ (s•• •)""Iow)••••••...... ________ SV..cus•....• _______ (Se" (i) below)_ ••.. -------------...... Om.h. _I.n.•...•. _.•.•••••....•••••.•. ___ •.. __ .•••••••..•..•• Abe'd••"_.•••••.•••. (South O.kot.).. __ •••••.•... Ch.y.nne__ ._ .. _. ____ !WYOming).....•...•••__ Den.er•...-.•.••••••• Colorado)_ ._. __ • ________ .•...•.•••••.. 0., Moine' __ -------- fOw.). _....•, ..••••... _. ___________ ._. farro•....••..•.•..•• North Dnkot.) ________ ._ .....•••••... _._ K.nsas City_________ _ S.e (0) b.low)__ •. _•.••______________ ..• 

Om~h. __ ---•.•••••••• rObrOSk.)-------. - - -..............­ St. loni' .•. ________ ._ See (c) below)____ ------------- ........ SI. P~ul" ••. _.•••. _•• Minn..ota)_. ___ ._•••••.•••••..... _ Wiohit•.. _. __ •• ___ ••• K."sas). __ .•••" ... ------------ -...... P~I'"d.lphl. _"m._ -............... _­ Baltlmo'e..________ :. (M.ryl'"d .~d O.C.)_ .••______________ ..• 

Camden••••.••••••• _ !Seo !dl bolow~___________ ._ ...••••.... New3fk ____________ • SO" d bolow .•••••.••••••• ___________ 

Philadelphi••.••-•••• t'e (g) ".Iow)_ - ----- --..--•••..•••... ­ Pltt'burgh_ __________ See (g) bolow)••••••••..•••. ___________ Sc..nton............. See (g) below)_______________ .......... Wilmin~lon __________ (Ool,ware) ...•••••.••••••.••_. __ Sin Fr.ncl.... _I.n__ •••••..•• ~~~ ------------................
 Ancllorago ___ •• _•••• _ (Alaska)____ ..••.•••.• _________________ • 

~~::~a-.-::::::::::::: !~g~t~rii):::::::::::: :::::::::::::::::: Honolulu _____________ (H.waii).... ___ . _•••"" ••••• _. _. __
 Los Angel.s..••.•..•• !S•• W belo,,) ___ .. ________ • __ .........
 Pho""i, _____________ Ar;,on,)...••••..•••.• _.. ____
 

~~~~.~~ ::::::::::::: ~~~~~~n,>,-.:::::::::::::::::::::::::::::: Salt L.... City.•.••.•• (yt'hl ____________________ ,.__ ••.•••••• 

San Fra"m" ________ (5.0 (a) below)••••...•••.••.••_.. _ 5••111•. _....•••••••• (W..hi"llon) - - ----- - ----------........ 0111.,.., Inl.....II.n.1 0""••11"". ...........................­ Pue,lo R,oo .. _. ..................- .. _.­ Olhr,•.. __ • __ . - -...........................
 Undi,lrib"lrd; 

O.PO,iTI11 r.,.iol' __ ••. ___ . ___ ......••...••....•_••••.• __ •.•_ T"n'l""r~ to Goyrlnmenl of CUlm ________ . .................. Withh.jd t"., of Foder,l e",pi~v~es. _.••. _. _ 

1,197,2G~ 310.lell 779,143 192,483 580. 779 1 ~, 8~1 13,911,214 ~,928, MO 7,4119,0~l 1,412,512 5,876,306 50,292 '" 59.~82 670, ~l8 Ill,226 4~9, 042 100.268 355,072 3.678 1,loln,'n l,n_,on 5,1&1,002 l,UO,31$ 3, nG,u. 116.6117 "

, 

n,on 139,351 17, ~25 113,600 ea,338 64.620 9S,m 8,122 73,990 lO,581 4<, 97~ ."

l,m,HO \36, 141 970,657 170,373 791,913 J,710 '. ow

, '" m,208 1~1.7~ 584,725 219,592 360,897 3,7H 107,693 \0,936 9J,369 36.724 54,108 

718,788 182, ~13 509,359 132,533 '" 4,019 ".

61l,709 91,860 o\<l9,~ 144.481 368.839 3,969 " 278,890 22,987 2,703

I, 5i4, 651 324,414 986,376 219,675 729.820 29,347 7,534 1,566,884 35l,621 1,07~,466 250.241 786,668 30,003 7,494

&95,&81 135,816 513,398 187,836 <97,719 25,141 2,702 ll. n., IU 2,516,0' "IN,:106 1, 190, s~ 1,451,5J7 U2,,"0 G2,= l, 351, 6&g 103,340 I,H2,031 363,429 1.330,~IO 39, 22~ 8,572 _ 584,I8l 105,330 44L 108 130,524 301.585 2,530,61l 514,908 1,667,886 ~4J. 583 1,207,1J4 3.175 I~: ~:1 3, 351. ~94 57>,1>43 2, 2M, ~46 5H.4CS 1.680,215 56,16S 

2, 4tK;, 165 390,022 1,614,149 265.846 1,327,U7 1,0&0 IU~ 675.161 193, U2J 440,50. 7~. 717 354,8119 5.856 4.122 835,030 456,012 ]53,783 ~U99 251,471 , 2,405 

12,419, '41 1,"S, no 9,107,701 l,lll.1n ',$71,111 lS,4n S.. se. 69,398 . 4,982 61,81~ 11. 8J.l H,m 40.785 177,090 ·······2~a· ,," 24,787 1~5.4~5 103, ~02 1.117 

162, ~92 24,128 130,504 47. Z36 82, 184 no

272,265 53,909 203,329 5Z,823 148.910 ". 1, 286 5,102,918 792,2<5 3,814.004 1.043.187 2. 714. 1lJ ... 25,232 '" 372,882 48,125 305,321 105. ~72 191.260 1,993 613.469 78,168 503,554 US. 463 352, HI 2,525 3,426

,., % 

177,326 32,346 125,220 II. 7~0 83,600 ~,

280,728 41,549 213,886 4~. 211 163,2S5 I, ~13 J,305

3,988,834 597,959 2,792,122 n9.31~ l,g62,&84 33,66J 16,457 

1,202,140 184.431 911,50< 226.524 678,169 

, 6~1, 6, I~S

2".UI 21,45. nB,~'5 IJot. JZJ n,nl ... 1,on

77,085 41,094 3.546 35,978 I, ~G9

:?117,473 46,155 """"'-isil" 2L .49 177,501 130.577 " 825,231 .....- - - - _.. 126,879 --------- ----_ .. 1~9,919 16,~0 ..............
 -3,69S -3,698 -3,698 -_.- ....-.........-­ ..............-.
 --_. ----- ---------­ ~~~

67,588 67,588 67,588 ~~~

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

)Z 

Totols ror Sill.s nol ,ilo...n above 

(.) cal,forn," ..•_•. - - - - - - - - - - -- -. -. -... 9.091,751 1,390.195 6,6tK;,127 1,822,502 4,707,402 34,5J5 41,688 lIIinoi'--. ____ .. ................ _..
 7,755,691 1,705,370 4,970,934 1,115,414 3,732,963 83,554 37,903 M,l<~U', ••••••• _____ • ____________ ._. 2,313,439 507.036 1,495, /35 352,208 1,098,659 :il.315 11,553 Ne.. Jersey ______ ..•••••••••.•••..•• 3,114,794 620,238 2,1119,293 574,207 1,514,720 3,78. 16,583

e) Ne'" Vo'k .•_••••••••••••• ___________ 18,953,132 5,92,,49/ 10, ~B~. 236 2,333,!l6O 8.511,631 ~7, 359 86,386

5,963,361 1,414,684 3,181,531 749,979 2,975,139 37,300 26,113 ~:~On;ilv~-riia-::::::::::::::::::::::: I 6,43•. 319 1,158,835 4,31~.0~9 852, !l68 3,352,531 69,084 34,517 

(il) Texa._. __ .•___ •••••••••••.••••..••• 3. ~9~, 281 ~7~,OJ5 2,361.614 789,371 1,528,869 25,962 17,411 

~b)

0) 

!~l

m

'" '"
 foolnol.. on p. 156. 
--------

---------

- - -

Table 1_-lnlernal rnenull ealledianl bv laurelll and by inl<lrnal r<lv<lnu<I r<lgianl, dill.iell, 51al<l1, and alh•• a.lIla,--(antinu<ld 

lin lhou",no, of doll"s_ See UOle 1 ~. 1~2, 10' I,. ral" ."d lurl!,.r b,•• kdow, 01 nalionallol.l. oy ,00re"'1 

AI<QhOII.U'< 

["i.. Ule'<. I----~------------------------ Inle,n,1 ,...nu. '"2ion" di'l'ietl, SUI." I"d nlhe' 101.1 (sum or Oi,lill.d ,pi,ib I.... Gill I.. ,"Iu,""s II,
 

26,11, J5, 43,
 

(St.t.. ,epre..nt.d by ,in!!l. diSlri'ts indi""l.d j n
 

er." I 

4~, ."d ~1) Tol.1
 ~",enll1..e'; tot.l, 10' Olher SUtt"ll
 Dome,t,c' RecliNc.· occupatlonell Other '" •how".l bollom oll.bl.) lJOn ' t.x., •

(0) (0' (10) ( II) (12) (13) (14) (15) (16) (II)

Ul,N1 l,'U,155 2J,010 U,121 Unlto<! 51.tn, lobI•••..•••.-- I_'"'c'=""':U:'-I_=":'"':~=-I_=""':'''::'' ':':'_1 J, Ul, lU I, U1, Hn ',­

AII.nta'...I.n••.••••••.••••...••...•••.•••••••._. 121,* U,6n 1,5&2,~al 10,'''21 n,n. 11,611 13,162 .. .., m Atl,nta • __ .• (G.orgia).- 19,IJI 1,.8~~ 11:,212 U83 3,696 I, 142 2,356 Bi,min~ham ••. (Alabame) __ •••.•••••• __ 10,302 , 11..3J4 9J2 82/ , m 

Cnlumbi... .(SoulhCaroli"a)..... _ 6,7BO 2,202 15,014 97~ 607· '" " 

,

'" 

.. (.)

'"

"

'" 

" " " Gre.n'boro•.•••....• !Nmlh Carolio,) •• _ 15,424 1.8M 1.2BO, 109 1,190 1.058 lackson._. •...•• Missis,ippi) .• ._...... 5,219 310 IJ,811 191 116 "" " " " '" Jackson"l;e

N..hillle•...•.•

__ .. 

.•••• (lenoe'se.).............. 

(Florida)__ 52,912 

15,515 ~.n~I,ng 

BI.561 

41,261 

32.Jl6 

10,B12 10,693
 

l4,7,J0 13,945 " ....

"

9,94B 

O..lon '0111",,__ 15~, ns 18, l6_ JIlI,I'1 lOT, ell 141,n~ 25,514 11~,J06 ... '"" , AUBUSI•.•• _..••..••• !MeiM}_................. 9,061 911 5,~l6 l,511 l,118
 1, 1116 Boston .. .. Massachus.tts) __ .________ 52,~4B 5.711 IB6,BOO gO. 536 17,322 15,644 60,373 ,

"., 468· 

" '" " BUrlin!!ton ...•.....•• (Vermon!).•••.••••.••• __ • 3,444 189 5,l52 3.Bll 3.77B a.750 

Hartford (Coooecl"ut). .._.. 17,310 10,979 12~,42l 5~.451 57,613 " 4,759 -----52;406' ....­ ,.. ,

Portsmouth. __ ....••• (NewH.mp'hire).••••••.. IO,I64 285 3,211 206 167 

Providence •. _. (RllOde 1,I.odL_._ 6,966 382 2~.311 12.HO 1,681 ······i:284 ,.. , Chlugoregl""_. .•••••..••.- -. •.•••••• 21J,912 24.31] 2,IU,~~1 5n,U1 ne,SKI '" " 10_,211 26T,95i 3,6Ja 2,619 '" Ch,o:.e~O..•.-- •••••••• (See(b)below)_ •••. _.____ 114,441 10,516 625.621 6'.41~ 39,495 26.179 12,415
 O.tlO'I. __ .•••• (Michigan).. ._ 68,571 B,413 1,73I,m lV.810 90,966 76,311 13,490
 Milw3ukee . {Wiscoe'in)..•. .-_........ 21,927 4.581 169.791 100.437 2,500 I, 791 e)


m"' ,

'",,, e) 

"

, 

Spring~'IL_ •••••••. (Se.(h)-below}_ ••.•••• _ 18,992 643 3ll6,973 265./96 N5,621 242, 051 3, al4 

'" "

,

CI...lnn.U'O!Ilo.. ._ .. _-. -...... U6,U~ 11,816 ~,UO,~61 III,JlO '16,J~1 16, no U9,Til. 1I,6IS 

'MI,m " clnclnnati....•_.•... _!'.. !ObeIOW)____________ l8,193 2,800 192,512 111.821 123,g78 122, ])7 1, 4BI
 ,

CI.i'land .. See t)b.low}............ 46,455 4,55g ~65.626 j'.l23 B,a53 ··'···4'-939·
 2,639 IOdianapolis.•..••.• __ !lndian.)_________________ 21,B67 2,6Sg 346,6B4 2~l,174 240,957 3,309 231,931 5,412 " '"

,% " Looisiill. Kentu'kO.••.••_........ 20,671 1",',',: j'O:l,.~ci~ 551.275 535,742 6,801 527,085 1,6~
 " Parker,bu'g.•..••••• _ (W.st Vi,gi"ia)_ _ 6, 210 2, 151 I, 641 '" " R"hmond {V"glnia}................. 22,961 1,105 399.894 8,516 5.660 ·····Ti:84· UrJ
 " .. , '" ~IAib::~:~q·';.::::::::_ (N.wM.."o)............. u;:m 16'm ~:m n,D;: 22,4~~ (.)
 

14,252 1,U1 " '" " 

,

.... (.) ,

,

Au'tin ... •••••• (See(h}b.lowl • . 41,332 B,061 355,8B4 31,455 9,424 9,293 Dallas...•..••••• (S•• (h)b.,ow._.-_ ..__ 59,9al 5.034 llII,l96 616 49~ ,~" % L'llIeRock." ••• (Ad"o"')._............. 6,49B 32~ 16,847 189 83
 ..........j'
 N.wOrleens.••.••••• (loui'iana)_______________ 18,946 76B BI,ll3 ll,nl 12,286 '·····4;959· • , 7,053, Oklahom.City (Okl.homa)_•.••••••_..... 1~,965 1,345 204,~~6 7&9 112 ~." " ••••..•..r. .• " "

N... Vo.k CII~ ....Ion ............_­ AliJa'y ___ ._ •. ________ (See (e) b~iow)________ .••• 

Broo~lyo_ ..••••••... (5•• (0) b.low)__ .• _.•••••_ Butt.lo..•••••••••• _. (S•• (.) b.low) .••• __ Manhallan___________ (Se. (e> ~eiow) . 

Sy,"<u,,_ •••..•••••. (Soe (o) b.low)_ Om.h. ,egl",, ___________ ._ .. _•• _•...••••. ____ -.•• 

Aberoeen•.•••••....• 1Sooth O.kol.).•.••..••___ Chey€,n. __________ •. WYOmin~.________ -. ..•• Denver••.......••___ (Coioraoo ..••••.•••______ 

Des Moio.,_ .----.•.• rOW~)- ----- ----- -..••••. FarEo _____ •• ________ North D.kota}________ 

~ansas Cily._........ 5•• (0) below)••••••.
 Om.ha __ "____ _______ N.hrask.) ___ •______ ._ ..• 

SI. Louis...-.•.•••••• (S•• (c) 1J.,ow).•...•••_ SI. PauL. .•_... _____ (Minnesota}••• _. Wichlta_. _________ ..• (~.ns",) -------........­ PhU_".lphl••ql_n. . ••••..• aaltlmor. ••• {Maryland and DC)•••.•• Camden........... (S•• (d) below) .•• New, rk. ___________ • (See (d) below) -.. _..••.. : Philadelph" .•.•_____ (See (g) below) __________ . 

P,tt'burgh..._._ .•... 1Se. (g) b.low) ......... __ S'ranloo ___ •______ ... See (g) b.low) ___ -.••.••• Wilmingl~o •••.••• ___ (D.I.ware) .•.•••.. _______ .... F'.nol••o ....Ion....•••••_ ------....... Ancho'age •. _._. _____ (Alask.) ..•• BO"._. ______ •••••••• (Idaho) ------........_.­ H.lena.. _. (Moot.na)
 

Honolulu .••..••..•• (Hawaii) ••.••..•••" ____
 Los An8eies (See(.) b.low) _..•
 PhO'nlL_ -.••••••••. tAri,ona)..• __ .••...•••• __
 Portland _.•.. ________ - Oregoo). __ • __________ ._.
 ReM. ________ ••••••• (N.vada)
 --........._­ Salt Lak. Cily..... ___ (Utah).•••..••___________ Sao Frand'co _____ ••. (Se. (e) b.low) __ . _••••..• S••ttl••.•....... ____ (Washingto"L 

alliott 01 Inl..n.llon.1 a .....II...... _._••.••••••• __ Pu.rlo RIOO -------......... -------------.....
 Olh.r ____ ..•...•. ________ .......... -
 Undlstribuled o,positary rec~ipts ------------........
 

(e) C.iilmn"......... 

1b) 111'00"•. --------. ... <) MIS'ou'i_._ ....... ~d) N.w h ...y_ --------. •) New York ... - -.......
 (I) Ohio . .-_ ....... ______ . 

(~) Peonsyillan;a .•..••••. _ () Texas ••• __________ ••• 

Feclnol.. on p. I.G, 

J25.2~Z

11,791

54,720 

25,091 

2ll,211

22,477 

121, "4 

2,330 

2,IM 

12,039 

17.41.1 

l.880 

16,539 

II, g90 

24.543 

21,753 

16,792 

2",n~

45,3lB 

14,815 

54,670 

61,066 

39.915 

11,430 

15,60l 

215, ~96

,,, 

2,31S 

3,048 

4,54J 

122.1l24 

8,110 

9, 4llJ 

6,616 

3,490 

9J,948 

22,001 

1,UI, 

1,225 

115,112 

tal. 433 

41,08J 

89,546 

3lS,292 

9~,MQ

I j 8, 411 

101.263 

U,SJ1 1,61'D,ln In, Dal 21.707 '" 11,173 l,6B3 10l,149 !i>, ISg ". 81,on 17,217 a5.491 l,a92,716 224,ogg 2, BI6 13,011 28,US !J,SU 611, s_~ tU.H3

5, &39 .,

509
 

1,203
 " 9, B49 

lOr. 730 26,201 " 1, 0Ja 3&,2GI 

" 

1,0l7 a, l44 

I, 535 68,142 ll,:m'" ." 54,260 B, 68~

2,675 195,634 71,814 ~, 743 IJ2,30l 4D,471

1,171 lB,488 ,. GG, O.~ I, J5I, '13 115, ,.:1 

3,m 257,187 H8, B37 

21,124 8,006 6,945 '" 1B6,101 J61,485 4, B41 441, H6 145,4S5 41,965 320,114 BI,049 1,159 2Q, D46 5,059 6,109 2,m
 

(.)

21, D'l
 I,On,US 1'1,601 " 

,. 

2,164 m 

4,410 

1,474 

m 

9,010 

4,917 2,05& " I, J4 1 

9,265 J64, 599 96,698 3,350 I, 916 I, !i>l 

1, ~~~ 18, BIO 5.m

11,605

(00 15,104 2, 5'1~ " 6,745 4%, OH 2lJ,480 1,281 8l,922 41,398 

'" U.2n 

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15, ~84 29,212 ----21f LOIl2 

98,051 .._--­

T I I t SI I IMwo 3boie ." "' a "' 00 

16,010 862, 64~ llO,IS9 II, )60 9J4,59J 331,110 

283, al6 Ill,96S g~~ 307, ~15 115. ~91

1,Gl0,m 352,086 4~:m 658,IlB liO, 244 

41,g67 790,955 m,55J I lJ,095 444.280 3B,01l 

In,6n 

J, ~10

l.6IB 

7, Bli 

197,794 

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l1, GtD 

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'" 3.493 " 

U,925 

6,561 " 

n_, I,.

J55, '" BI I 4,183

gl,815 

11I,2g 

51,9~1 ,,, JU.S71 " '" .." I, ~04

56, ~15

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J.4~

141,255 " 12,919 

n,lIl 

19,19l, - - -.... ---­

197,4B1l 

28S, Jl6 

IB,411 

99,058 

215,626 

Hi. 13/

16g.416 

g, g22 

IU.US 

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n.381 

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3,192, 67, 121 

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3, :156 

9. 376 

3.571 

m 

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140.433 

3.841 

9l.049 

98.355 

52,871

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n,." 23.449 

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43,2Sl 151.J19 1.223 I l. ~fjl , 26, li9 254.466 3,:W 1,079 , 5,226 lUll ., ~1.890 ~, m ----iiUi~· '" 7J. Sl3 l.m 4,939 12~,B16 I, ~05 1.0S~ '"

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Tablll: 1.-lnlll:maINYlI:nue c;ollll:ction, by IOl/,ee, and by intemal lWvcnuc rc,ionl, didric;l'I, Statu, and olhll:r aNal--continulI:d 

[In Ihnusands of doll.r,. 

Inlern,1 rev~nue regions, di~trich, St,\." .nd olher lie." 

(SI.les ,opr...nl.d ~y sinili. disllicts imjiceted in p",.nl~nn;

10t,ls lor olher Stalel 'hnwn .1 bollom af t.bl.) 

Unllod II.tn, I.tol. __ ._ 

...U.nl I _ __ 

Atlanta •.•..•••••••.•• (Georgi.)........................... Bllmlng"am. • (Alabama)___ _ ___ 

Cnlumbia_••'.' ._•• _•• lsouth Carol,.a).. __ •••• •••••••••••.• Greensbo'•.•__ •••••••. North Caroljn')..•.•••••_•• _.• •• Jack'on ._••• _ (Mississippi) J.ck'onvill•.•••••••.•• (Florida)••••• Nashville_. (Tenness••) __ •••••• __ 

111011.....1II1.n•• "_•••••••••••••••••••••••• •••• ••••••••••••• 

i~i!r~i~~~~~::::::~~: I~J~~J~~~;;~'~~~~~::::~:::::~~:::~:
 

Su I.~I~ 3, p 1~2. TOI I.. lalo. Ind lur1h~r b,••kdn"," 01 n.lion.1 101.1. by ",,"'e".1 

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18, 678 

5,571 

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6010 JJ'2,7U 

240 20.114 348 34,880 52 97.5ol2 

20,148 

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13,368 

23.169 

20,041 

14,360 ", I, 164 46, DIS 

100,066 J, J(\ol 

50_ 283 16,6]J 

20,201 

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7,341 

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8,590 

57,825 

33,646 

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21,801 

3, all 67,526 

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23,106 

4,80,, Sl,16t

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2,174, 2,m

26,45) 

27,640.. 

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3,608 

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'" 23,7Bl 

" 12,179

,

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10,584 '" 113,192 

20.61~

35,250 

97,7,5 

20,172 

13,90$ 

13,389 

23,262 

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1,282, 

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01... Y.,k 0;:11 .......n_ _•••••••••••••••••• 

AI~."y .•••••.•••.• (s•• (.) ~elow) .. • . _••••.•••• B,oo~iyn__ .•..••••.••• (5•• (.) b.l~w) __ . Bu~alo_ .• _.. (S•• (e)~.low) .. "'anhatl.n .. (Se. ("Io.iow) . ._ 

S'r.'"'. __ .•.••••••.•. (S•• (. b.'ow) .•• _ ._ .••••••....••• (I....h ••••I.n•• ••••••••••• _ 

Ab.rd••n__ ..•.•.•••.. (Sooth D'l<ot.).... •••.•.•...••••.•.•••• •••.• ••• .-••••••.••. C~ey.nn. (W,omina)_ __ •.•.•.•••••.•••..••••. D.nver _ «(Qlo'.doL •.•••••.•.•••. _._ I,JIJ 2/ 1.284 D., "'oi••, ._ ..••• (1010.)._ .•••. .•.•. 153 •.•••••••• _ 139 Forll•... (No'th O'kol.) ..••••. (') (') ("J (') 

K,n,.sCily .••••••• (S•• «)b.l~w).••. ._............ 49J •.•.••• _._ 497 (') 

~I~i.~~,;::::::~~~::::: ~~:.IJ(gk:~,owj'" :::::::::::::::::~:: ---------. aa~' ----- ­ j i' .-­ "'iiii' . st.r.ol... .. . (f'hnn"""ta) __ 2/1 t>.J 208 (') Wi,hil" .•.•.•..•.• (K,n..,J_ .• • __ .• __ •__ •.. •._..... ._ PhII.d.tphl.'OOI." •••.• ._.............. 10,261 iSn ',611 31 

B~ltimo'"_ ..•.....•••• (",.,yl.na 'nd D.C.)_. •.• _...... 1,219 3al SgO 28 c.m~.n .•..• __ . I;"IC)~.IOW)--- •••.•••....••.•--­ J92 m 1 ~ew"k.. __ .. _._ ..•..• So. d)b.low) ... ._.. 5,083 .••••.•••. 5,~S3

Phil.~.lphl•... (S•• Wb.low) ..•... J.160 24a 2,912 __ •.•••.•••..• P'lI'burgh •••••.... (500 (~) bolo,,) _.. . ...••. ••••••. I (') 

S,r,nlon .•. (S".(~)b.low)... _ 4 ••.•••• (') W'lmin~lon.. (D.I~w",") __ .••••. __ •....••••. I ..•.• _ 1 

"-n "'.n<'O<. ,.,-Ion __ •••••.•••••. _ 52,IU 120 51,U5 2U An'ho"~o (Ar"ka)_ ..••••..... (') (0) ••••••• _ 

Boi,e_••••••••••••.. _ (id.I,,)._ .. _ _ ....•..•.••• __ ..•.••••..•• ._ •...•.•.•..•••••••...••.••• _ H'I.n'.... .. (Mon'an.)_•...••... __ ._ (') (0) (') (0) 

~onolulu_••••••••.. _ (H,w'il)_._._ ..•..••••.. Xl 17 •••••••••••••• 2 

~~~t;;!.!.~:::..... f~~,~~~~)b.~~~w~:- .. _.•_.... 6,IH (") m __ ~:~:~. I~

~~~t~.~~: ..:__ .­ .. :~~~~~o~~L~:.-_.~~~.-.-._:.-::::_ .._.... J32 ••• :~ 24 •..••••.•~~. Silt L.,o e'ty _.. lUI.h). •.•..•••• . (') ..•••...•••.•••••.. _ S,n Fr'nCi,"' .••••• 5.0 (,) bolow).•. ._. ._. _ 45,7JB 353 45,199 S.'ltlo..•• (W~'hingto")- _.••._.••_. Ai~ 35 8D4 .•. _ 

1"..p"::t:n~~~~I_I~.~~~~~~~~~~~~~ . : ~::: :::: :..... Fl !:l :::::::::::::: 

Olll., __ •.... _ ••.••.••••••••••.•.••.••••.••••••••••.••.....••••..••••.•••••..••..•••.•. 

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Jij 

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1,:ij Pnrtsmouth_""'.""'IN.w Hampshire)••••__ ._••••.•••.•.••••••••.••• Providenco Rho~e Isl.nd).• __ • ._ 164­

Chlco.o ....I.n. __ ••••• ••••••••• •••••• ••••• •••••• ••••• •••••••• 1, 0I0l 

Chlea~o_ " Isee (b) b.low).••_••• " .•_._.... 5,305 

gil~~~"ke;;::: ::::::::: ro:~~~~ik::~ :::::::::::::::::::: I, ~~j Sprin2fiold ••••• See (b) b.low)._ •••••.•••• _.•••••-. 2 C1n<lnnlll ....1..... •••••••• •• 4,054 

Cintinnati. •••••••• lsee (f) b"low) .•.••••. ••••••. ••••..• 450l CI"velan~ ......•• Soe (I) bolow) • __ •• _ 8ag 

IndianaJHIli'.•_.••••••• (I ndi••a)... •••• ••••• ••••••..•••• ••• 135 Louisville•.•...• (Kentucky) • • ._ 1,09g 

("'II. Parke"bu'g.• _...••••• IW.'t Vuglni.)...................... ZO _ R,chmo.d•••••.. __ Virgini.) •• I, 548 

0.11.. roolon .•_._ •••.••••••..•• ._•••.•••••. _•• "" __ . 1, Ul 

AlbnQUerque •••••••••• lNeW M.'ioo)__ •••••.••••..••••..••• 2 A"slin..... _._.____ __ _ See Ih) below)_ •• __ •.­ . ______ I, 33,', Dallas • •.••••• Sea h) below)••••••••••••••...•••• lillie ROCk •.•••••••.•• 1Ark.n"")......................... 2~g

N.w D'".a •••••••••••• louisi'n.)......................... ~1

Dklah.ma C;ly •••••• _•• Okl••nm.)..•. _._ .••.••.••••••...•. 

Totll 

,

, 

;

,

(.) C.liID'nia•..••.... (b) 1lllnoi,_ ..• -- ------ -.-..........
 (,) Min".,i_ ..•••••••••..••• _ 

fd) N.w Jell'Y .. _------ ------ -._._ .. •) Ne" VorL ... _•..•..•.•••..•••.. (I) OhiD__ .•••••.•••.. (.1;:) Pennl~lva"ia __ . ... -.-.......... (h) T.la< __ •• ,.,.,_ 

51,852 

5, 10/

1,3el 

5,875 

16,394 

1, '163 3,165 

1,368 

... 

m 

...... ....." ­

3,684 

'"

..'", 

50,82J 

4, 574 1,28g 

5,974 

12,697 

'" 2,916 

1,027 

'", 

"

, 

"."

,

". 

60,817 

40,787 

65,161 

70, ~57

100,066 

36,650 

58, 981 26, lSI 

".'", 

2,083 

" " 

60,094 

40, J21 65.031 

70,523 

91,291

36,537, 

SB,M6 

26, ,8S 

; 

'" " 

"

,

.., 

.. '"

FOQlnote, on p.l56_ 
Table 1.-lnlernal revenue collectiont by laurClI1 and by Inte",al rltnnue regionl, dillrictl, Statel, and othel areat-<anlinued 

[In thousand' el doll.,s. S•• 1,,1. 3, p.l52. for lax ,.Ie, Ind '"rth., hre.kdown o! nlhonal tol.l, by ,our~e'l

SI.mp t.xe. on dllOum.ol" olher i011rume.b.•nd 

pinyini' c.rd. 

Int,,,,1 r...".u. ,"gio",. diltricI', Sial.'.•nd olh.r ar••, I 

(Std.l r.~ro,.nted by ,ingle di.lricl' indicated ,n perMtli.,",,: 10t.11 'er other Slol". ,ilowo at bollom of to,le) Toiol Cii"ellel • Monufo~­

tured 10­

b.oco , Oth.r " Tolal 

Illue. and l..n,le" 01 

bonds 01 ind,btedne.. or tIlpil.1 'lock, roreil" 

i"sur.nc. policlel, 1l1li 

d.'d' of conv.yonoe 

S.I"" by ~0.1­ Snlel by muters directors (., (2Il (28) (29) (30) (31) (32) (» 

(') 

CO)"'-­

""F) 

...........j 

2,221 

1,239

, 

'" 

, 

" 

(') 

-------- -------- '1_-"",,,:,,,,n"cl-c'c':':";':O:':I--c','c':'~:: 1__""""','-1--,"",','-1-_,',',"",','-1-_-''''''U:::'-1-_:':''''c',':'-1---":-:'=" AU••II.reglon ..••••.••.. 1,JU,~ 1,1II,!77 n,4!S i,no 1,625 7,775 i,MJ 1,4J1 

Atl'"_t' .. -..•.•---------!G.orgi.)--------...... c"'" _ 654 _........... 1,336 1,027 309 

B"mmgilom •••.••. AI.bomo) .., ...... 1,.li2 . .­ 1,382 (.) 728 606 122 

Columb" . (S,ulh C~rol'".)_ .••• _•• _ I,gil I 1,91l (.) ~07 .l21 86 

Greensbmo __ •••••••... _ (Nor1~ C.,olin.) . __ 1,2H ~n 1,218,g76 (.) --'''Tiiif 62B 9g1 921 68 

J.ck'on ••• !rII"""ipp') ..• _ _ _ .•••.•••..•' .54 255 gg 

Jack'onville FI'''d.).. 9,J90 8,452 937 2,894 2,.l97 496 

NashViIl._ •••• (Ten"mee)••.•••.. .._. I,BJO ••...••••.. 98 1,673 59 1,065 812 252 ••"on..-gl.n_ __ •. _....... 250 1 US 11 1 i,20i 2,J96 t,1I5 

~~:t~~~""'­ ~1Il:~~:~j,U'.II'y::·· -------.... ('j 3] (OJ (.) 20 ····--iii·---------·J· .l,~:1 I,m 2,77~ Bu,liogton__ . ••••.• ermonl) .•••.. . (0) (.) 97 72 26 

H.rtford_.......... GPnoocl"ut) 211 ----iii- "-'-""T (.) 1,558 790 167 

Portsmoulh_... (No" Homp,""e).••. _ (') ._..... (') ._ __ 177 125 52 

ProVident''-­ _ (Rhode Isl."d)__ __._....... 1 3 (.) (.) 339 178 160 

Chlu•• "!llon ••••••.. :1,',"",7 (') 609 1,1501 JC 17,JJ4 J,nz n,!" Chicago....... (Sep(,) bel,,,}..•. , (') 18 I,BD 5 12,521 1,345 g,9~.l

Oel"i1. .. _ (Miohil.n)_ _ 1,2~2 (0) 582 707 3 2,795 1,079 1,71~

Milweuk............ (WIlC,n"n). __ II 48 17 7 2,281 838 456 

Sprin£!leld.. (See(b)bel,w) I I (.) i26 ._...... 125 

Clnelnnotlroglon •••••• 1'1,4"1 nr,411 I,I!! i,J5J r lJ,n7 4,GU J,&2' 

Cindnn.tL_.. (See(')below)__ -. 138 1\9 19 (.) B,432 l.521 1,446 

Clml.nd...•.••• • {Seo(!),elow).. _.... _. • 2,~~7 1,785 65B 1,392 1,1gl 

l"di'n·ltol"-----······-lln~ ..".)---.----------......... 75g ""363,",","," m (.) -(',-­ 1.09,,', '" ,',", OUllVI ••••••••• • K.nlucky)., 357,020 1,163 2,768 34' 

P.'k."~u,g ._._..... (we,l V"g'",.) ••••••._. 1,079 ('~ 218!61 263 113 30 

,(.,.'hll~c:~~~::::::::::::::~~~~~~~.:.:::::::::::::::::::::: .l5t~~~ {.),407 i:~~ (,l)gl6 ~::~ 1,182 4,~~~

:~sl~u..~:~~::::••• -.•• (ruNe::)e~~I~~i"----:::::::.:::: ----ii.­ --­ - --------iii......(.) I I.m 1,::; I.m 

O.li., ..•.. see(il)bolow) ••••••••. _..__ __ _•• __ _ _.. 3,545 ------C929 1,615 ~Ittle Rock__ ..•.. _ .. Arken,.s)... ••••• •. -.••..•• __ •• __ •• ••••• _••.•• __ ..•' __ .•.• __ ..•• 3S / 275 III 

ewO,lo.n,... _... loulSl.na).•••.. •••.•.• 1,085 (.) 1,085 (.) > 1,424 il2 592 

O.lohom.Cily__ (O.I'hom.) ,,__ ••••••• • _ _ _ .••••.••••.. ..••. ~55 66~ 2g9 

No ClOy regl __ •.• _. __ -- - ----- --- -_. .. .,
 M i2,lU l,ns 'b,2;~ \
 '" 

,..

"

... "

"

Aibany _. (') .....• (Se.le) below).•• . .., B'ooklyn _•••.• (se. e) beo")__ •.••.-.- _ (') '" DuHAlo , (') '" '" (') ..•'" .•••.•.. -. _ Ise. (e) b.low) ••••••••• _.-.­ ,,, ..···..·---.6· ". ......1)25· ".
 M,nh.lI.~ .. __ S'.le) lIelow)..• . &0,543 58,704

, Sy..e"$e. __ •...•.• (S" e) b.low) •••• __ • _ '" 

1,011 (') 1,IaI 4, ilia 0 " 1 .-.-. ._ --- . " '"

.." (.) Abeld..n•• __ •••••• 910"110 O'kol.).•_•••••••••• _.__ -- •••••••••••••••--•••-••••• " ­ '" - 1,285 g;~~~~:;,~:_::::: ::::::: ~~~~~~~:~::~~~::::::::::::::::: T:f"'" :::::::::::::: :: (;) :::::(~7):: ::: '" ", ". "~

"

1=1

f arlD .. • (No,th Oakola)__ . (.) .- - -- . n, (" '" '" " '" " ~~":~:_ ~'I.I_-:::::::::::: ~~~~f~~k~)~o.~~.:.~:::::::::: :::: ~.! _, :::::::::::::: ..~?_ -: ::::~: . '" '" '"' I, '" ~t:~~t-::::::::::::: !~i~~~~O~:\O_~~ 741 I,m'" '" •._---............ \,my:::::::::::::: (.) 14 ---"i=f-­ 2,532 1,3]3 '" Wi,ni!O (K>nsasl. __ •••._...... _. ------ .... --...._-•• 11,1$1 4,~g 7,1011 "hlledo''''' _ ----------........... 8,"n '" , a,au
 '" (') "' 1,048 Ballimore -••-..-----Irllaryl.nd and O.C.)_ ••.-.-._"•• ',"" ,. .~

Camden.. .•.•.•.•• See 1'1 belowl_' .- __ 1, IG3 I, 161 

" " >0' ······1:896

"

Newark__ ._••.- see d belo" ._ g25 2,568 ,w 3, Big l,818 Phil.d.lph;...._........ (see (gl belowl" . ~, S~8 (') 8, 884 '" '" 

,
 "'-'-j;213 "'" Pittsllur~h_ ••.•.••••.-•. I".lg below __ 17 ............5" '" ("
 I,m 'W " , S"'.ton .•. S•• ~)belo") ._._._________ Il,/49 14, /41 ·········26· 

Wllmington _ (O.law.ra)_.. .•.•• _ lI,U] 11,!Z1 11,n2 '" kn Fr eI.co _Ion ._. .. _ _ ... '" '" .. An~h~'"g "---25- .-..-_..._.­ •.• ....... (AI.ska) " "
 

Doi'e -- .-...'.. ....-.- .... _......­ __ •••••••••••••••• 1IdahO) ------•••••••..•..•- ..--- ""'" 

" " Helen._... _. ._______ Monl.n.).•••••••__._. __ -- --_. - ••••••••••_ ----- ---- ... --------_... ---------_.. m '" " ''" 

~, '" -"Ii Honolulu. __ ••••• H.weil) ------ -- -.....••••. ,", •••.•• 2~ '00

lo' Angele•...• (Se. (.) be'ow) •.•_. _ " 5,879 " 5,854

, (') (', 

(') Phoeni•..••••••_.--.--.lA'i'o••l ...-.-.....-.....-- ---- " 

Portl.nd............. ••• Oregon)_ .. ••••.••••.. (')
 "' ,.

'" ", (" 

" ,~ '" R.oo ... ..__ Ne"d.)_••• ._. •.•.• '" 

,~ S'lIl.k.City {ut.h) •.. - ------73­ '" '00 '" 12,285 9,684 2,599 S.n fra"'"""o_•••••••••• {se. (.) below).•. _ _ , '" (" 2.048 1,523 (') Se.ltle_._••••••••_••• _. (Wa,hington) _ _ 4 {.y .. '" " (.) otn.. of Intornatlonel Oporatl""'" .-_._ 4, In (.) • ,1ft '".. Puerlo Rico............................ ...... l,lJI 4,13i
 " .(') OIil.,. _ _ _. ..••••••.•••-.­ " 

(.) Calilo,"ia_ •••.••••••.•• ___ . _ lb) IIlinois_ --•••••••••.••••••.• 0) Missouri. ______ .._.._..____ . !d~ New Je"ey_ •. __ •___________ e New York___ •• _••••• _••••••. 

~r ~~i:t;sYI;irlia::: ::::::::::::: ) Tex•• __ •.•••••••••••••••••• 

1,ISl '" 1,010 

2,~

2, S86 

24,625 

'"
 

lOIaI' to' StOl•• nol .hown .bO'lo 

(') " ..............
 

-----------_ .. 1,284 .. 

, 

"

" 

1,903 ········----5· '" 2.1,841 ----.-.­ '" 

1,130 " ,% 

'" on "
 

(" '" 

, (') .. 

,


..'",


,
 

18,165 

12,652 

2, l26 

2,112

62,167 

~, ~ll

5, 9~4

5,273 I 

U~1,299 

I, 8'lli 

I, /25 

l. 521 

I, 213 

I, ~2g

8, ~54

10,068 

1,021 

60,206 '" 2. &31 

4,740 

3,344 

1,219 ,~"
 

, 

m 

5,l56, (" 

FootnolOl on p_ IS/i. 
TablC! 1,-I"'C!mallC!VC!"uC! eollC!c1lon' by lourcn and by inlC!mal IC!vC!nue rtgionl, di"ricts, Statn, a"d olhC!r alC!as--Can'inu,d
 

I'. lhou","dl ot doll..s, 5•• table 3, p. 152, for tu til., a.d fu'the, br",,~down of .Ilionll telllJ by SOU"H)
 

Maoul"lu,e..

In\e,"ol ,e"n". '.IW.', di,l,icl., SI,les, 'od olh.r .rea.' 

(SI,ln ,,",e,ented by ,iOill. disl'iel' indicll.d in p...nlh....; 10111, Ie' efher StJI!"llhewn at botlom 0' llbi.) Tolal 

(35) 

Ca'oline 

(~)

LUbriellinl 

oil, etc. 

(37) 

n,lJ1 

Ti,es (woolly or in part 

ol,ubber), 

ione, tUbes, and I,ead 

rubb.r 

(0) 

Unl.... il.'''' I_I. _. _. ____ .. ___ . ____ . _. ___ .. ___ . ____ , 5"UD,J.lD J, 4OG, Dll1 HO,JU

...11........1.... __ • ____ .,• ___ , •• _________ • ____ • ____ •• _•• __ • __ • 51,<12 otlont•....__ . __ • _.. __ (Geo"i.). _____ ._•••••• _•.. ___ ... ___ 7, 6~6

J.1, SJ4 4,691 

,g 

" 

J,571 ,~

e'''''in lh4m __ ._ .....-­ lAI.b.m.)- -,--. ----. ---­ .•.•__ -.••• 5, 081 ~, 241 (0) '" Columb,....... .••.••• Soutn Carolt""! ...._. _•• _..•__ ... ___ 5, Z!>6 4,690 " "' C"<mlberD.._._ ... ____ (No,th Ca'OllOJ ___ . ___ ._._ •..••..• __ I~, 775 10,607 " '"' J".1On.._••••..•..••_ (MIS,i"ippi).._•.•_....___ .. __ ._ I, 951 Ile.,Mvillc__ ..... ____ (Flolld.) ___ ..... _••..••_•..••...••• 5,W 

1,152 

3,UO ·----···---5ii­ 5, Zl2 

'" N"~"II •.........••___ (Tenn.,s.e)•• _•. ___ .. ____ •.••• _.••_ 14,450 5, ISO '" ·198 ....1... '0lI1....._••••• _. ________________ ............._•••• _•• _ n,l81 

~~:I~~~:"::::~::::::::l~~~~~i,u;.ti,r.:::::::::::::::::::: l.623 

23,824 8"'lIncton•.•••..... __ aermonll .... -_•.••_..............- m HuUo'd •.•••_.. _._ ___ ConnectICut) ____ ._._•.• ___ .•.••• ___ 39.286 Po'tsmouth ...._.•_.... (flew Hamp,h".). ___ •.••••.•.•_•• __ 1,24) P,.vide~•..•••••_•• _. (Rhode Illilnd)_••• _..........._..... 4,003 e~l,,". ,..1......... ____ .... ___________ ..... ___ ..__ ....._____ :1,011,'" 

21, '801 I, 383 13, G09 

G,410 "' ". l. 619 UO,J.l1 

-_.. __ . =.'iiii­

._--_ ......_­

" ......._._ .._. .....­

1.S:I1 

1,240 

" '" ",,,""

'" "" J, JOl! Ch''"JU.•.....••••.•_. (5.. (b) below).••••••• ' ............ 402,601 DeI,..l.. ....•.. _._.. __ (Mid"c.n)_. ____ ......._._ •.• ___ ..• 1,538.054 

219,931 

33, BGI 1,012 

'" l.G15 

I, 4tZ M'llIl'Iukee•. __ ...•____ (W1S""ns'n) .....___ ._ .. __ • __ .•••• ___ ~O, 1196 Zt,II93 '" '" Spfincl,eld••• _.....__ • (So. (b) below)••••••..••••••.••••.. 1l.l9li CI..<ln..atl ....I.n.•. ___________________ •••.. ____ . ____ •..••___ n~,q.1

Cindnnoli....•.••.••_. ~see P) belowl----· ••••..•••­ ...---. 23, 065 Ci ...eiand._.•••• _~_ ••• See f) below .•.•..•_•... __ ••. _____ 365,130 

lB, 6~1

S55,nt 

3, l!>6 62, ~23

~,I"" '" I, 9J~

22'S,n. '"", m,J08 

Ind,.n.pol" .•.•• ___ ••• ~I ndiana) __ • _••••• _.•••_..••_•... __ . SO, OM lOUlSv,lIe .•.••••____ •• Kenlucky). __ . ____ .•• __ •... _. ______ B4,62J 

15,09J 

66,009 '" 2, 2JI '"

,ro P~,kmb"rc .•.....•••• lWest Vilgini,)..•••..•___ ..•••••. ___ 2, 181 2, 091 '" '" R,chmond._ ...•• ____ .. Vilgini.). ___ ..•___ ..••__ •..•••_: ___ G,984 5,341 '" '" ~I.. _Ion .•• ___ ._••. ___________ . ______ " .....____ .•. __ ... _ 5J2,51; 511,121 11,132 J,nD olbllQUe'Que. __ ••. ____ lNeW Me."o).•• ____ ... _•••.•• ______ J,340 A"'tin ••••• _. ____ •..•_ See {hl below!. _•••.•••_........... 288,21S 

J, ~69

274,59J 

", "'iii:3Si' " I,m 0111.... ___ ....._••. __ lsee(~ b.low _._ ••• ___ •.. ____ ..••• 45,160 36,120 "" 1,949 little Rock .••.• ___ .••_ A'k.ns"'). ..••_.................__ 10,582 New O,I••ns••••.•. __ • (Loui.i.n.). ____ .. ___ •. ___ ._........ 31,4~ Okl.~.m. City __ ._ .•_. _ (Okl.~om3) .._••• __ • ______ •.• ___ •••• 19~, 1lZ 

10,ISO 

29,6l2 

184,657 

1,087 " 5,670 

'".. ,," • 0 

- - -,~

101... .,.,~ ell• ..,,10.. ____ •. _••• _._ •...... _._ ......_____ .•.. ___ 

Albln~.....-. -•• ______ te fe~ b.IOW~ •.•• __ •••.•••_••••... 8'••k,n..••.••••••••. 59•• below _.................___
 Doff.ID. _.•.••.•.•. ___ See (e) b.lew ••• ___ •. _. _____ ..•___ 

Mlehln.n.•..... _____ (5•• (.~ below!_ •.•••••..••••••. ____ S~..w.e_ ..•.••.•••••. (S .. (. below. __ ... ____ ._ ..•___ •.• D,".~....1....._••.• _. ___ . _____________ .••••.•.••••••..•_____ 

Age'd••n._ •.. _....... !Soutb D.kot.)_... __ ••.• ____ •.• ____ •
 

thl~ln"e.....••.....• WyominV.• _._ ....................
 Dtnv., .•..•. ________ (Colmdo) ---............_........­ D"" Mo;e" __ . _........ (low.}............_................
 rl'to........ _... ___ .. (Nor1h O'kol.) ____ ...............___
 

Klnll' City•••••••••.. rt'll (c) bel...) ...•.---...-.........
 Dmlha __ .•. _... _. ___ ~Ib ....~.)_____ ......•_•..••••..••• Sl l.ui............... 511 (c) below)•..••.••••..••••.• ___
 SI. P."I .......___ . __ __ Mionl,.ll}. _..••...•••••..••••. ___
 

Yti'~itl .•••....••..••• (~.e.,.).•• _ ............­ ,..,UOlI...hl. 'oal..._. _._ •• ____ • _.••••••••••••••••••••••••••••• 

B.lllm.'•.......... _.. to'YI.nd 'nd D.C,)............ _••.. Camd.n............... Se. !d) belowl...•••.•••••....••... N...I'k_••••.......... 511 d)bllow ..•.•••.•.•• __ •. _... _ Ph,IM'IP~il .... _______ (51. V belowl- ..•••••••••••..••••. P<tt.l>u'lh.. __ " ..•••.. ~soo (I) b91.w .••.••••..••••... ____ StraM.n .•....... _____ S"Wbllcw ___ ... " ...",...",. 

W,lmielton............ (011."".)...•...•••••..••••... _ s... F............I......__ •••••.•••• __ •• _ -................. o"h.III•... __ . ____ ._ (Al••k.)____ ....•...•••••..•••..... _ 

~~~...::::::::::::::: l~:~l~';i):::::::::::::::::::::::::: H.n.lulu...•.......... (H....,i)...._____ ........••.•.•...•• I... "nt.lot..•..•... __ !SI. (I) bel...)•..•....••..•.... _. __ f'I1o.ni ........... _____ Ori"n,)... _____ .••..•.••..•••..••• 

::~~~~~:: :::::::::::: !~~~~~>::: :::::::::::::::::::::::: Sill LU. C'ly......... Ut.h) ..•.•••...••. , ............... Sin f""';..c .... ______ 5•• (0) below) __ .•••.••••.•.••••... S..III._" ••••••••••••• (W.,h,nglon).••.••••....••...... _._ om.. II I..' ....." ...., D_.t1........_. - -...................
 P"nll. Rico ......... .......................
 Oth.r..•..•••..........••••. _.. ---- -..................
 

an,151

3,30J 

24,328 

15,648 

155,1132 

34,29G 

1111,110 

3, 1:iJ 7,542 

16, B49 21,99l! 

I,m 

23,169 

5,627 

28,76l 

44,902 

15,257 

52',000 

Z9,4lo6 

5.467 

64,469 

203,536 

11 " 2SO 3, ~21

,~

uI,no 

1,334 "
 

~,'"
 186,5J4 

3,512 '"
 

2, 25~ '" 

m,5'5 

8,710

..,


•
 

t11,51H1 

1,537 

1,351 

G,5/1 

555,171 

4,9l7 

US,ll11 

3,001 

,."" S,I8l 

9,612 

I,IH 

19,451 

4,369 

20,81B 

30, SOl 1l,608 

nl,15' 

12, 188 4,311 

5, aas 110,098 

m,lll!4 

<,77B

,.. ;rn,u5 

(.) 

I, 1191 

'", 1~,r18

,

" '" ]1)8,948 '" 4, ~55

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

I::::::::::::::
 

19,011 

"-"'---'i;ji:­

18,822 

"

, J,~

,

, 

" '" 

'"

.,'" 

m 

m 11,111 "," 4,949 '" 7.739 

I:l 

',Jr'J .......-...-3'
 

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

" 4, ~51, 

iT 

4, aao 

'" 

6ol,9~

1,815 

6,~8

Sli,457 

It, lSI "
 " 

9,146 "
 B,321 

" '"
 1,110 

""
 n,21J '" 

13, ~B3

m "
 5,334 

1,698 

J,51' 

"'

"

,

•

'"
 1. 905

..

"
 

" '"
 1,2/9 " "
 .............. ......... ---­ ..........-.-­ ----- ......._­ .............. .......------­

.
 ' .,d,o I.." 

Moto, von Ides,
 

chusi"
 

bodi"',
 

PI'ts, and
 

ecc."e".'
 

(m 

1,151,'45 

J,10'

1,436 

I,~~

I,m 

I,m '" ],211 

1,llB 

2,430 " 

3, S74 " " 1,7S9 

I,GU,l!'2­

48, ill 1,151, !ltZ 11, 181 

I, 206 ao,ltl 

6,203 

4G,270 

26, 5119 

.~

."'" 1,1" 

I, 1I3 '" 5,220 

, '"
 1,344 '" 

11,1.\1

...
 4,997 

2,175 

19,495 

1I,etl "'" 

--; 

55.9" I t,UT 

"" '" 

, 0) 

,
 -"'-'(.y"'" 2.315
 

1.42'9
 ,... " (.) " -------jO.1' "" I, 649 1,197 

'00 

6,/72 

4.263 1,477 .."
 2,185 ." .. ,
 '"

, 

U.1,. ",an n,n~"" 

Radi. and Refrileralors, lelevision .lets, Ireenll, ai' phonolraph., condition.,", Olh.r" component., elc:.; electric, 

etc, lIS, ond 0;1 

Ippli,nC.. 

(W) (41) (42) 

lJ'l. 711 m ..,10 lJ5,lt1 

4,U~

,

,

, 

',110

"."

'"' '" 

J, :;; 

".'" "" (0) 

'"' "'" "" '" " 4,397 

1,105 (0) 

2,614 

5,UU, 00' 2~, us 

z.al~ '" '"' 6, J71 

'" ""-""'465" -"""Ti6f 11,3C7 

'"
 m


'0) , ,~

n,CI'5 n,UI 57. J$1 

57,~1 14,u9 23,IZO 10.371 29,651 1, ~Il

"
 5,349
 2,m 4. 159 l, 1!l9 5,012 

5,1" 24, JJ.l Sl,UI

'"
 4,541
 

zo,m.. '"
 5, G64 2,nl 1,826 2,432 '" 2,436 12, ~G5 , ,


, '" ,ro

2,0.46 1,OJ5 "
 u. ""
 (0) "
 Z,72B 

"

, 

(0) 

"'" '" .." '"

"

", '""'" ,~ " "
 

4,999 

2,014 '"
 1,655 

l,lIS 

(0) 

, 10J,J4S

,. 

4,318 

IB, ~SI

70,22, 

10,189 

'.Ut 

(0) 

.., 

1. lU 

"'

,

"" 1,005 

2,143 

" 

4,M6 

1,089 

32,9041 

15.615 

r)2,sn 

15,111 

2,012 ... '" .. '" .. 46, a~l 4,612 , 5,71a "
 " '" 9,585 7,B13 4,l88 I, 4~~

6, 1l3J 5,513 I, 145 7,909

, 

(.) '" " '" ie,au 1,111 ,.nG 11,45:1 '" (0) 

, l:1 

"

, , .. ""

. (0) '"5" • " 9,170 1.Q66 I, 19Z '" " 3,O!Il " 

3,241

•

, ", .. ", "

, --····(o"f····· '" 

2,8J9 J,1322

4,005 '" ,~

(0) 

'", (0) " , " "

, ""'-f;f---'­ """"-"'7­ .----of;)' ---.. ,

" 

(.) C.lil.'.,.........................
 lOIl,O/9 l65,196 8,111 3,184 12,009 4,599 3,142 11,613

~bt IIhnoi. ___ . __ .. __ ................
 411, !I'll 268, 58lI 1, 016 I, 733 50,143 61,691 [6,618 28,IJ2

MilS."';.........................
 51,912 40,115 .,
 5,912 2,~ I, 12l ,."" (d) Newl....., __ ..•... _.............
 69,931 9, 121 ..
 4UGli 4,&10 6,211 '" a52,m 51l,50fi 19,011 &1.954 '" 28,543 55,914 9,171 11ll,34S

~~ Cb"i:_ ~~~~::::: ::::::::::::::::::: 188,195 65,119 228.602 52,413 1O,2Jl 28,693 ,."" 

(,) P""n<ylv.nil.....................
 424, ZOI ~53, 960 12,6llll 7.1194 16,028 13,336 '" n'm 9,~; (h) r...s __ • ------................­ m,OOI 310, /14 10,550 3.22G 6,lJ3 2,778

------- ._------ -------=---=-- -­

1.015 
••

•••••• 

Tabl. 1,-lnl.mall'lli"'lZnu. call1Zl:lioni by laun:" and by i"flmal r....'1nu'l rlgion" dittrich, Stat", ond oth'lf ol'llia,--Contlnuld 

lin lllo,und, Dr doll.t' S", I.bl~ 1 0 152 lor I.. r,l~, oed r~Ilh'r ~tel~down 01 nlllo"llol,ls by "'lutees] -t. 

Rol.UOfl' e.cls. t.... Mi.~lflne.u. e.clee II'" 

Admi,.i.n, 

Inlemal revonue tegionl, d"ltlotS, 51.1... , •• olh~, Ir~.. I Club ••es 

(SII!~s tepresent.d by ,in~le dislri'I' i.di..lod in pa,enlhnn; TOIII Toilel plepa· Totll Thea Ie", and initia· 

lotals lor ol~U Sllle. ,how~.1 bollom.1 Ublo) FUt. conc.,t., Roof galdens, tion Ie., 'a!ion, •tllielie eaba'ets. 

conlest., ote. 

.tc." 

(4~) (44) (45) (46) (H) (48) (49) (~) (51)

U5,9Z0 IB,5" UJ,6lI1 IU,7S1 1,552,150 IB,JU 35,031 511,100 

'D,15J 4,no U.B!6 l.no ',m 1l~, !lIB ',­,,, I,m 4,"' 5,344 ..,
 2, 545 I. 625 74,391 "0 ,. AlI'~r~~~:~::::::::::-~~~i~j~~:)~~~::::::::::::::::::::::::: m I, 499 4,052 "" Columb"._.•••••••.•'lsouth Carolin.) ._. __ ------ -----•••• i:m ". m 2.697 '" '" '" '" G".Ol~OIO. Nort~ ~al~lina)..•.•..- ••••••••••••••- I. 633 2,m "" " 1.514 10,584 PO"'

, " m'" lac"""n. _•......••••• M"...Slppl) __•.•••••••••••.•_. _ I, 395 "'" no '" J. 726 " '" I"~,,,nvill" __ _.. •••• Floridl)... ._ .•••• 7, laO 1,1>4 3,361 " 2. '" 433 17.860 ", J. 347 " I.H5 ~.,1",11•. .___ Teone".e) __ .•••••••••••••••••••• _ 4,076 ,,, "" I, a03 '" l.309 S.SZ9 m 25,241 1,151 to,m 1, '" SlIJ ',I" Jl,nl I,'"

.. U~ ,~

" 4,~~~ '" ."'.::~~;r:~~'_ : :::::::.(Mat;;;'):: ::::::::::_::::::::::::::::: m ].317
 

B..lon......••••••••. (Mass"hu.elts)__ .•_._._. • __ .. 14,215 2, 163 6,447 '"
 R309 1. 314 2,04.1 4. 3~:

m ,,, B.llin&lon _.• . _ (Vermont) . m Hartleld •. _.' ••••••••. (Conneotl,ut) •••••••••••••• __ • _ 2,185 1, 740 21. a8r 1. 728

"' '" " Porl,moolh. {New H.mp,I",.)••. __ •.•••••.•••••••_ 7'm ""'.. ", '" on ,",..• " m" "" P,oviden,e •.•.•.•• (Ril.de 1,llnd)__ ._. • .. 2.007 m 1,002 "," '"

m 1.518 ,. PO "
 C~lallG ,..I..., •• __ .:••••••••••••_•••••••••••••••••••••• _._ 51,180 1,181 %1,"J 5,<" 11,)10 U!l.JJB <,an <,111
 ',­'"

30,535 6,317 12,258 3.492 8, l58 113, ~I6 2,324 2,3Q8 4,3M 

14,387 2,263 5.649 1,161 S.l07 46,739 I, I~a I,m 3,246

~;I~:!~:~~:.::::::::::: l~:~±~~;!jl;:~~:=:::::::::::=::::::::: 2,691 m 1,666 ~.a61
 

Sprinlfiold __ ___ •••• _ (Seo (tI) oolow)_ .•• •• ~:m
 I,m 1.399 m &. al5 ,,, I'~J '" Clnd tl 1..., ..••• • __ . 35,5]5 5,042 u,n< 1,ll!lO ll,~ 111."1 :, nl :,611 ,,­ '" 1,291 

CIOY.I.nd .. '. -_ See (I) below).•.• ._ ••••••••••• 9,459 1,250 4,355 ';0 ... '" Cincinnati __ •.•.•••••• !see (I) below) ••.•••• _. _._. _ 9,106 1,565 3.858 m 3. 15~ 11,9>4 3,19] 54,604 ,;, ",... 2,235

I 124 

Louisvill"..• • (K.ntue~y). .. .••••••••• 2, 917 

Indiana~.li, __ '..••••• Indi.nal ••••••••••••••••• _ 1,012 3,7al m 2,011 26,591 ."
 , 786 t, 481 n, on 1],155
 

P"ker,tlu,~__ •.• _•..• (We,t Vi,ginia) _••••••••••••••• _
 a, 124 '" '" .",

,... 1,904 '" ,. '0; Rlohmond ..•. (Virgini.)_ •. ._.... 5,128 t, ."168 19, &]/ ,~ 1,365

'" '"

'",,, "''' ~, t,~~ "" " J01 U,MI I,an '" n,1I5 4,1!ifi 1I,,",S l,an" .,~~ , r;.:,"I~;n":~:~q";;.:::: :::::.(N;';':;·';;;';:i':;i.:::::::::::::::::::::::: 1,016 .~ liD]

2,027 

0'11'"--_ •••.•• _. (50.(11) below)••• ._._•••••••••..• 

AUllin ..• •••••... (5•• (hl below) •••••,.•• _._. _._. _ I, 274 4,652 m 2, gg5 U,9g4 

..

'"

'" '"

'" ltm 1,366 7,m ... 2,629 21.575 2'm '" llili. ~oek. ..••••.• IArkln•••l __ •••.•.•••••••_._._._._._ ,~ 1,857 3,601 ",
 '" ""wOrl•• "s_••••••• _. lo""ilno). _._ ..•_._ .•.•.••••••••• 4,629 "" 1,917 I, "" 6S~ 16,582 '"' .., Okl.hom.Cily•. _ (OOl.homll... ._ ,~ 1,540 n' 3.514 I,2a7 J, agl

'" '" ""

'"
 " "

Ihw .....k CII, ,..1... __ • .••.••.•.... _ 1111,110 I 

'" 

U,2GI lI,an a,540 n,no JOO,NO u,;rs ',... ',", n. '00 m 5,06a ~~~~~ry-n'-:: :.-::::::: (I~=~ ~~~ ~:Ig:j ::.::::::-:::::::::::. e, 141 I, 557 1, '" 197 '·m '" Bull.lo•••••••••..•. _ SOO!O)bOIOW)._ ..•.•••••••.. _._ 2,682 12,195 2, g13 '"' 1.178 4, 832 7,9511 1,197

,"' Manh.Uan.__ _.. (S~o a)b"lowl • . 80.644 16,223 2~: rJ~ ',~ 'M "'" 7, '" Syracu,o .•. (S.o o)b"low) __ •••••••• _ '" 0li3 33,965 ill,42a 9, gS6 2, !I'll 5, l88 S.6a3 4, 37~ I, 348 '" O....b~ ...10..... _•.•..••••••..•.••.•. ••••••.•••••• _ J,IIIJ 

m ", "" "',SlI 2,615 to,aM'" %Jtffi '" .. 5,J~ Ab.rdeen 2,1" 2, SOl •• _. !South .DJK<lU) ..•• _. . __ . __ ••• n'm " 1,699 I, ,," 191 &~~~:~~:.-.-:::::::::: (~g~dS.._::::::::.-:::::::::::::~::. 3. OJ) '" " '" "

'" ,,"'" 54,291 "... 

, De. Molnos. _••.••• __ (Io"'.).. ..•.•.•••••.. _ " "0" '" " 3.359 '" 1,~~ I,m 7, oas Fargo __ .. •....•. {Norlll D'kala) .•.... _•.•.••••.. _•• _ '" '" '" '" m 1,071 Kansas Cily_ •.•. . _ (So. (oj tlel.w) •• •._. 4. '" 67~ ,,, '"

.. 1,876 I, 884 2& 815 '" Dm'ha .. ...... (Nob"sk.) •.•..••• _ 2.140 " 1,007 

"

", ,"'"

,.. " '" 36.905 51. Louis .•••..•••. (So. (c) tler.w). •••..••••. _ ~, 141 3,653 3,016 on 2,199 '" 81,730 

'"

m I. '"

'" St.Pau' . • (Minne'ot.) • ..••••• '" 08~ J, J53 J,II9 3,843 2, 197 16,633 ,.'" 

Wicoill._. _•.•..•.••• (l("ns",).•• ._._••••••.•••• _ 2, 104 m 1,165 I, OliO 9. J82 '"

I, :l~ pt,1I0dolpbl.....1000 •••• _._ ••••••••••••••••• • •••••• It,,,, 1i,1" n,UJ I, '"S90 '" 12,a111 In,lIBI

'"". Camden 

B.ltimore._

N.w.rk 

.' 

.•••.•••• 

•••••••••• Isee (Maryland 

S.e 

(d) 

(d) 

below) 

belo"'I' 

and D.C.)_ 0"' 

•••••.•••••• 

••••••••••••••• _ .... 

2,318 

I, 4SJ 

1,168 

4,493 ", 3,261 37.061 

~, 570 a~1,263

r:m r:m

I, SI6 1,232 3,184 '" 2,487 ~2, aaa Phll,d.lphr' ...••••• (See(g) below .• ._•••••••••••••• 10. aS4 1,755 '"' 4,662 1,225 ." 3,212 "" SIl, m ,," '"

'" ~:,..

i~~, Soranlon

PiHatlu'2h 

.• 

__ 

_•••••••.•. 

•. , (Soe 

(See 

W 

(g) below) 

below) ••• ._._. _•• 

_ 6, 

I, 992 

44~ I, 022 1, eSl 2,161 1~, 40~ '" m'" 3,752 m , 4a5 Wilminglon.•• •• (Delaw"re) __ •._.. • •• _••.•• '"'

'" "" 1,237 ",'" a... F' d I.., _. __ ._ G5,UJ e,ln '" D,lM'" m '"' <,1D :.l,leG 2>110,500 I,". gIl la,tIIl 

" ,.. " Anchor,gu " '"' " U,lI ..•• •••• (AI..ka) .. •••••..••••.•••• 1,779 ... '"'" " '" 1,818 n ,. '" " " 1,162 m;~~;·u:.:~~::~:::::: ~~i;!~;~):·:~~::::::::::::::~:~::::~:: n" "• '"" m

1,592 5.041 '" " LG' An2.ft,s••_---- -. '150'(.) below)•.. •••••••• 28, ~69 3, " '" " '" ~27 II. '" g79 ... 304 ID.359 46. 8~6 4. 314

.." 3,222 Pho.ni. _. _.••••.••• _ Arizonn) •••.•••••••••.••• 2,201 m '" '" '" 6, J22 '" l. 075 3.059 Portland.•. •. Oregon) __ .'. •••••••• 3,047 I. 361 ". "

.. 1.191 '" 5.4(;01 R.no .. •••••••• (~evI.I). .•••••••••._•••••••• __
 Salt Lake City ._ IUtah)- __ ._••••••
 .. ~, 10, lJ5 ,"' "" "".. '".. 2.947 1.778 m m 8. Ogl '" Sa" Franclsc. __ •••••• Se. (a) bolow) _ la, 849 '" !,52' ". B,133 "" I. 20~ 6.787 i31,8oo I,60S " 2,387 

m " S.aUfa __ 0" •••• (W..hinglon) ...__ • ._•.•••••••••• 6, OJ] m 2,114 m 2,7]] 24,695 

" "

00' alii.... t..l.m..I....1O_.tlon•• •••..•••••••••• """ , (.) (.) 1,~JJ (0) '" (0) '" • ~'1h::O _R~~_::::::.::::::. 2,629 ::::::::::::::::::::.:::::::::::: --------··2- --. 1,004' --'-7..;"" -is···· --

Tolals fo, Slltol nol shown Ihove
 

f) C.tifo'"ia ••••.•••.•••• __ • __ --.... 41, 18
 6.m 2a,311 11, 146 II&. 554 5,919 b) IUlnai.__•••• ________ ._•.••••••••• _ 3~, 366 6,811 Il,55/ H~ 9.4al l2Z, lJI 2,436 2,816 }6~~ M1ssouri .• __ ............... ----.- 14,416
 4,286 "'"' ~, !I'l2 I, 156 4,Oa2 110,605 I; 681 I) N.wJer.ey __ • _______ •• _•••••••••• 10,164 1,539 ~, 152 I, 142 3, 131 41, ~59 1,533 1,615 2 317 0) New York. ••••••••••••• __ _... 101,I7a n,268 31,812 8,54a 39,490 300, g!ID ""' '" 13,800 ~, 845 9; 916 f) Ohm ....... ••••••••••••• ___ 18,5,,5
 2,m &,213 I, 185 B,nl 611,518 1,411 I, 547 3,527 ~) Penn,ylvanoa .".' ••••••••••• 19,289 3.102 8, 43a I, J58 5,998 85, ~27 1,556 1,090 4, Ja7 ) Tex.s ' •••••••••••_••• ___ " "" 21,170 2,&40 lJ,841 1,065 5,625 44,57a 4,IIllJ '" "'" 

Foolnotll, on p. lSI;. 
••

__ 

Tabl~ 1.-1nl~mall~nnu~ cOIl~c1iont by IOUICRI and by intRmallcvcnlllt rcglont, dirtrlch, Stotn, and othcl aTllias--<ontlnued
 

Iinthous,nd, 01 dolla" s •• table 3, p, 152. 10' tlx ,.10' nd !urlh" h,.!~do.." of Mlionll 101.1, hy JOUICe,]
 

Mi",.II,neou, e,c,,' l".,-Conlinu.d 

101"001 revenue 'Oilonl, ~ilt,iO'l" SI.te-.•nd a1he' Il.as' 

(SIll.. ,.p,...nled hy tinall ~i.tridt indi",led in pl'.oth...... ; 10LoI. lor oth., Sill... lII(n11n It boU(JIlI or I.Me) , 

Unllod 51..... '01.1. •. __ . __ ., . . _•. 

Alllnl. 'OIllon . ••• . . •. __ 

Atl,nl'_.. • __ ~DO'E,a) __ .. _ _. ._. B"m,nlhlm _,, __ . __ ._ Allb.m.) .._.... ._ Columb,._ _ ._. South Cllol,na).._. _. _ Gleen,bo,n _ NOllh Cllolrn.) ._. __ ).ck",n _ M,n'''''pP') . __ .__ ___ . _ ).eklon.,UD .. __ 10Ilda)... _.. _ N..h.,llt .• lonn )._.__ _ • _ Bert.., ....'.n__ . .._ _.. __ . . . _ A"IUm --- --IMlin.). - _._ .. __ .. - _ Bo,to"_.. .__ .. M,,13Chul0tt.).. . .. _ Bu,linlllon V.,m.nt) .• •. _ Hlillord.. Ceon.Wcal).. •• . _ f'Q'hmDullt. __ .. (fla'" Hlmp.hi re) ._•• 

p'D"aen,._ _ . (Rhed. 1.I~nd) .__ • __ .•_. _ <:1>1 ...& 'OIl'_ ' __ '_' .. .. _' .. _.. • . _ Chlca'O..... -. __ -lStt (b) btlow) . . • D&lr..I._ .• •••• _ M,.d1,1-'&). • • • _ 

M,I,,"ukee . __ '. _.__ W,,""",,&) .. • __ • . Splln£f,.ld • SH (b) b.I ). ._. Clnclnnotl _1_. ._ .. __ . . _ 

C"'lno'li. ... _ISM (I) below>... __ --.-••••-•.---­ CI&<.I'nd.________ ____ Sao (I) bolow) .. . .._._. Indi~n,peli"_'" Indift~a) _._ •• _ .. _ loui,villo ._.____ Kentucky) . .. . _••• _ P.rk.Ilburg_ ..... W",t Vj'2,nja).• .. . _. .• Ri,hmond.- (Vrriinia)_._ .. . •. __ .. _. ._ Doll.. ""1110" __ ••• • •• • • •• _ ". •• 

Alb"QU"IQ"e. - --------INe'" M••ico) ----.. -. -----.-­ Au~lin. ._ .. S•• (bl below) . _. __ . __ .. __ . _ 0.11.._. ._ S.. (h b.low) .. . ...... LiI1l. Rock_. 'k.n.IS). . _. __ . ....., New Orlean._ __ ___ LeuI"ln.) .... _.. _. _ Okllhom, Cily ._ ._._ Okl,homl)._. .. _. ._ How York <:Ib '0Il1an _. •• ••• __ •• •• ••••••• _. 

Alh.ny... • ._ \'"' \'\bOIOW) ' . __ .' BrookIVn .. SM 0 b.'DW}__ ._ ... Buffllo••• ••• See 0 below)_ .. __ . . 

T.1I1.rephon. ,...,.... 1.,.· Ellph. cabl., IIdio, .k. 

nl, .a4 

n,lll 

2t liS

.. 

I, '" SIJ 

2,035 ,~" :10, UJ 

14, ~55 '" 

5,61' " 

(') " J3,1U 

17,50S 

9,197 

1.907 

2. CIJ ~,lIl

2.9D2 

12.275 

6. ,60 

1,013 

1,610 

1.275 

" ...II

..

'"

].161 

'" '" ~1.'U '"
 '" I. ve " 

Wi,O ml/li'I. TrI"lpo,I.­ ,o,~ko. >m. Local 1.1.· lion aI

Ind ~uip phon. "e",l... pelion. 

",onl.erVIC. 

(~3) (") (55)

ZS,UD UD,O~

,n 

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,
 

,


1,004 '"


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 :,Ul 

t.260

..

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 1.an

m

m '.


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u, 

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m "

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 n 

n,ID2 "
 

,
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 "'
 

ID,n: 

3].240

.,
 

m 

3.~

2.623 ~,

)I.·U 

Zl, ~~G '" 

7,590"
 ..,
 

"',110 

fi: fll ~,'U

&I,~4S "'" ~.2U

20,661

9, gag 

1.569 

3.569 

e.l \0 

',~'"'
 J.32 a ~,

'"
 

n,

'" ,..lW ~,

2.413 

•

Coconul and
 U," of saro I
 olher .01.­

d.po!i1 bo,,.. Ilbl. oil. 

P'lltonod " 

(") (51) (") 

...
 

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,.
 "
 

"

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 '.'"

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 )0 

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m,.. 

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::::::::::::_: ------('~.-~.

n' 

J. ZS' 1.llg 

(') 

---i· .----­ --i;.;o· 

I (0) 

1,226 

'" 

n, In 

FI 

..------.--. --------Tiiin,lO) 

(') ._. -' '(.y' .-_ ...---­ ---­ --_. 

... _ _--­ ----_ _-_ . • 

---···{'-i--·-­ ------··fi5i­

--'-"{o"j--"­ .-­

:::::::::::.-­ ------Ff-..·· 

Oi ....I.nd .peei.1 '11010' lu.l. 

(59) 

IOJ,~5'

5,JQZ 

."...

.. 

'"

0« "' 

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1,5~

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 M' ,0> 

165 '"
 

'."1'" S.506 

U~,~

n,'"no ~, t~1
 

t~1
 

1,93)

.,


L!ill] 

11,1'. 

l,~a

J,12I 

1.~66

1.135 

3.J54 

IJ, a&2

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".
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MI.'hou.n .. .. __ (S•• (elb.iDW)--------.----.-.... S1"'"5< .. ._.__ .._. (5•• (. bDlew)_._. .. 

o~~~r=~_- __ ~:::::::::-I·-,;,jih.iJ.-k,;ta>::::::::::::::::::::

5~.605 178 

SI:,~

12,07al 

J,~:

7D,566 UO ".m 66.261 

1.111 

".J:~

5g3

55 

~:

(0)

(0) 

. 

J1.80]

(") 

u,n. 

11.501 

Ja2 

JO.:~ ~h.VtM -.----- .. -. 

O:·~~,; _-_::::::::: FlllO .. .-_ .. 

Kan ... Cily_._ .... 

WvominEl_. ._. ..._.. 

~~:.~:O!:::::::::::::::::::::::: /lOMh D.~OI.) .. • .____ 

St.(c)below) . .. 

:l8 

Il:~~Il3 

261 

3 

9~t 

19 

Z~

It~;ZOO 

m 

I~

6.0~~16 2~.ga7

It 

I~;II 

79 

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._{.y ----­ 'i(4ij" 

---·----------------··----i11116 

(~t.l!l9 

~~:

Om.lhl.._ ... __ . • fI~b'ISk_rr). ._. • ._. .__ 12,561 321 18.315 2.746 66 2 _.. . ... _ 1.lfi2 St.Louis. • __ • __ . S•• ('lb.low)_._________________ JO.114 1,610 42,2'7 l.~~1 108 _. __ .....__ l80 I,m 

St Paal. .. •.-..... Min"mls) .­ Wi'hita. __ • KaMas).. .. 

".lI.~.I ..hl.rOlllon_. .• _.... • B.n,mOI•.• ..... (M.,yll"~.,~ D_C.). 

• 

... 

.. 

.____

••••• _ 

... __ 

801 

1,115 

n.ll6 

6.~m

11 

~J

J.ln3015 

I, 1~9

1,\11 

11,111 12.12' 

8, ~60 3.285 

1',',',')', 

IZ5 I 

91 

',',', --···-f·':·l------ ­ .. .. _ i,lllJ 

1.102 

1.241 

12,',",,', 

Clmden._ .. (S~(d)b.ID"1 ._ .. 25 I 416 S3 -. ... _-. .... _. J<I9 

~,·,:.':,·,·,,-;,-.·.·.:::-.·.·.·.·.I(S'·.~»~:I~I:.:::::: ::::: uw Pill<burlll S.. b.low .::::::_ .....• ::::: Smnton • • StII ~Io"). ..... ._ 1"",',l2.~ 1.165 

406 

Zl1 t,l56 1S2 

4 

-----is:m 29,108 2.,Z!! ... 1.613 8.7,',', 

125 

m',." ------{oy­ --- -'-'--'Ti06­

501 --.------------.----------jl,g92 2,98A .I &AI ',:1l1 WrlminElon •.. !>ellw".) .. .. . .. 

..nr..net......I....__ . __ ..•..... .. __ ...._... .-..... 

i~r~t·:Il:~::::::::::::~~:~~~;;.::::::::::::::::::::::::

I 

It,l17 

:H 

(.) 

I,~~

2~

71,551 

j~

24 

lI,lW> 

5U 

21 

l,DIil '-'---{oy--'-- -·-----iii;iii­

~i --'.-... ---.-- "---'{'-i--'-­

lll3 

11.151 

~n Ho"olulu •• ._ ~"••ii).. -----------.---•••• ----. 

Lo, PhOenix Anllelo,_ • , -­ --­ __ -­ ..- See ('1 b""",) ­ - - ­ --. ------. . ._._. A';10n,) __ . __ . _.. __ . ". 

605 

6.956 118 

30 

28237 

1,785 

8, 82,', 

1,3O~

"n~"i'

19 

',',:1 

.----.. ---­ .. - -·---··---·i!i­ ---F"';---' 64 ',,' ',,~, Porll.od 

R••o.... ._ _.. _. O"le")Ntvada) .. __ .•. ..... • ~0667 9 7 561 586 ~u 13 . __ .... ._ .----.------.­ 114li '634 

Sllltd.Cily__ .. Ut.h). •. • __ .•• 1(18 5 69 1t ---·---"5;552" 9S& 

SI"f'."', Sutll. __ 0111.. ., l"h ._ ~(I)lIelow)

_. W,'hlnllon). .. I1...111 0_."..... • 

._____ .-.______ 

. . __ . 

3l.3t6 

6.928 _.. 

709 

Ig8 •• 

61.~15

10,7(8 .. _ 

lD.D71 

1,09'9 lit 

US 

91 ...__ ---·-·{.-i----­

. __ •. .__ 

12,&16 

(0) I,~ ._ •• 

8.225 

177 

._ 

~.,te ~"o

DII~r --­ ---­-­ ------.--­ • -------.-------••• --. .. . __ -----­ . .. _._. --­ -.. . . . • ._ ::::::::1'--"'---'939" :::::::::::::: :::::::::::::: 2629 :. :::::::::::::: 

Tolal, fo' SI,I •• not ,bo..n Ibove 

"} Calilorn,.. ____ . ____ b .---­ IIllno," • _. __ • ______ , M,.....". ____________________ dl New )o".y_________ • ____ . ____ t New York .._________________ ._ t) Ohlo..____ ._. __ • _____________ . 

~) Plnnsyl••ni •._• _______________ ) Tel" _______ .. _______________ 

~O, 301 I 

I9,HI I 30.378 

I~. III 

lS.m 

I~ 100 51, 91i I' 

3. g52 

U,238 11. gn '" J~,716 ~1.!i90 ,n 42.628 21.578 

18.ll!l7 ',m '" '" 1~. III 12•.t96 1.02' 

25, !iZ9 8.9~3 '" J2.01Z 9.239 '" 3,723 10,685 '" 

-_.-...­ 1r.!;'16 IJ.49] ''j" ',,,"'" ,') ., 6.51!6 1.619 2.1611 ,~ -··---('-f·--·· 1.301 1~.lQ2 , ------·iHiij­ ,. 11.441

'" 5.m 1.1[2 I:; 4.107 8.370 .. _-_ ..._- .. 3. III It. 187 '" I Fool"••, 0 . ISb 
Table 1.-lnlemal ,ozvcnUIil eoll"c:tion, by lou,en ond by (nl"rnal ,oz""nulil ,,,gionl, dillrich, Statoz., o..d other a'lilat-Conlinued 

[In IhoOMnd' 01 doll.." S~ I.bl. J,~. lR I., I.. ,ole Ind lurthe' b,..~dewn 01 n.liono\ 10111. b,,,,uI<.,j 

I Inlo,n.1 ,evonuo realonl, d"lricl', SI.tes, Ind olher Iren l 

(51.1.' rtclesenled b, .iogle d,Wicl' IndiCllted in c..onlhr:ou:
 

InlJll. 'nl "'her SI.I.. shown It blJllom '" I.~I~)
 

lhd•• 61.1.... loUI ...•__ .••••.•.• - -----_ ..........­

AII."U ......... -- ----_.........­ ....1.". ...."'­

AII.nt. ........- (Geo,,;.) ...••••••••••••••••••••..
 Bi,min~h.m....•..•..• (AIIOlml).."" ••• _. _. ___ •.•••.••
 Columbi•....••••••.. (SQulh Cl'olin.l .....••••.•••••. _.
 G'••nsbo'o ...... _..... (Norlh Cilolin. ______ .••_•.••.••.
 l.chon ............ ___ (l>1i1,I"ipol)..._______ •.••••••.•••
 l"ksonltill•.•...•...•. (F1ori~~)....••••••••••.•••..•••••
 Nl<h,i1lf•• _.•.•.•._••. (T.nno15M) •.••• - ----_..........
 hU........." _••.•...• _______ ....•••.••_______ ••.••••••••••
 

A"IU,I. __ ....•...•.•. (M~in,) _•••••.••••••_. _..........
 1los1~".......••••. ____ (1)1.,,"ch,,,,'U.)..• __ . _•••.•.••••••
 BUllintlon_ ...•.•..•. (V.rmonll_••.•••••••••_._········
 H><lIor~ _. _." ..... ___ «(;onn"'1Icul).••••. ---_ ...........
 "",t,moulh ..... _. _' .• (N,w Hampshiro)_ ---_... -........
 P'oVld."............ (R~od. 1,llnd).. ... -_..........-


Mi,e.lI,o,ou, o.d.o t..e,-Continueo 

N..,o'ia Ind Coln-ope,aled Bowlinl elle11, Wlge'ins t"o. Use I" on ,er,1 Uncl'l1i1iod 

marihu"n •. in' amu"menl ceol tlbles. Olhe' " o.,i•• ,••e.' 

dU~ln,OI:cu' IOd ~lminB etc. Loin vohide, I 

pllionll Ule. oemes Octup.lienll Wllell 

(60) (61) (62) (~) (.) (&~) (.) (61) 

I,OI~ la,'ll .,18-1 •• S,.n ",761 n. 117,12' 

M ., "~'" " " 

•• u ~,5"10 n n,.n

, ,. , " 1,\00 (') li,951 

0 , " 1,113 " 2.21.

• .~ " , " no , 

on , ',oro 

" • '" " , " " 2, S02 6, ~15

2,047 " 5, ll5 

,~ 2,254 

" " •

'" • "' " '" "

" n '" , '" (') 

" , 

1,259 4,500 

'" u. .. " 3,1.1. n , " "

,.

, 

(') 

" , .., • (0) 

" '" '"

,

, 

" 1,179 

, --'·'·"·'·ii" " '" , (0) 

tlMO 

, 

, " , , " " • , ,~ , ,

" " , , m , , n 1,516 .n n ... 10,Ut .. ... " '" '" " ,. '" m 3.610 

, '" " " '" • " 3,989 0 

•

"

" '" •• 

"

(0) 1,862 , ,. " , '" 1,003 " , 

.n ,.. n. ',= I,'''' M U 

" '" n"

,." • " 1,58l " ,

-"" " '" m " , '" 3.018 , 

" '" 2,717 

, 'n " 

, 

I,JM

, 

n 

n no , 

" "" "n 

'" " '" '"" (') , " -, 

" -, 

n ,. • " 1,3/1 , 

• u, ',1" " ... '" (') • " •

, " , _ " '" • '" 2.521 ro 

'" " "• 

, '" " , " '" • W '" 2,8-12 

'"' , " " '" " " '" , ,.

,. " n l. 392 " " 

Ch...", ....1." _.••••••.•.••• _•.. _•••.•.•••.•.•___ ••••.••• 

C~LC'llO ....••••.•. ____ (8eo (b) below) ..••••••••••••••••.
 O.nool..•••••.•••••... (M,c~,g,n). . ..• _______ •••••.••• _
 

Milwluk.e .•.•.••••••• (Wi"on,io)..••••••••••••._••••.••
 Spr;o(l'eld ..•.•••••___ (8.., (~) below). _____ ••._••••..••• <:lndn'naU ................ ______ .. _..•.•.•••_. __ _..........­

CindnnltL••••••••••• (Seil (I) b.low).• __ -............. Clml.od ...' •• " ••.•• (Se. (I) below) ____ . . _..........­

Inoi.napoli, .••..••____ (I nOi.nl)., .... _______ ...••••.•••• 

lou" ..lIe .....••'" ••• ~K.ntuCkY). ." .•••.•..••. ___ •••..•. P"kersbu'K _.••••.• __ _ We,1 Vi'K'O,I). _. ______ ..••••.. __ .
 

Richmond .•.•••••••••. (Vi,~inil)..•.. ,•._•.••.....•..•••
 Dill.......on ."'."'" _________ .••••.•.. _. - - - - - _.......­

...Ibuqo.rqua ..•••••••. (Now M.'ito).••..•..•.••.•••••••• ..."'tin•••••••.•.•••••_ (5•• ~h~belaW) _________ ••..•... D.llas .....••••.•.•... (5•• h balow) ..••...........••... littlo Ro"_......._._ (A'k,n,.,) . . ....... .. NowO'le.n'···········lloul""na) •••••. - ..' ..... Okllhoma City..... Okl,l1Oml) .. .............
 

"""''7 u_.r.·IiIfF."lIn.I••'7.·lInll'.r<iiIi'I.".SiIII'lIir.'.'S1'.,.m•••'lrl;;.'IIS.,••,._I.'_ 

..... Yorio <:."',..1_.•••••••••••••••.•.••• ••••••• :III .... no .Ib.n'. •••.•.... .-_ (S""(e)bemw). __ .••••••••••••••• 13 81 36 

8rookI1n.......••••... (S.e (el helew) ..••••. 110 95 95 ~un'lo_. .••.....• (S.o(e b.IOW! __ ._............ 31 81 10Z 

."h.III1l __ """'--I'''le)beIOW . .-................ 7S lD~ 15 

.,'",use .. _ .....•..• S.e 0) belew ...• •._....... 6 7S l~
 

Dwo.h.....'."_..•••••••• •••.•••••..••••••._.. 01 I,UI 5.U 

~~..d..n __ (Soulh O,kot.)._••••• _•••.••••::: 2 un 1~

~:~;:~-_:.:_:::::::::~~£;~~::::::::::::::::::::::: ~U 1~ 1l1.····_·········· __ INorlh DI~ela).................... 2 19 20 ~"<IOCil' ....•..... See(c)below). •••••.••••••.• 6 9~ so m." .....•.......... Neblls'l) .•••••• ._....... 13 83 51
 

Sl.lo"is .••.•.•.• (Seo (c) o.low).•.. _._._.......... 42 198 fj9
 1,1GB 

1,065 Ph.l=~~~~~i~:.:::::~_~~~~~~!:~~:::::::::::::::::::::: 1 2ii U " 1.50 "

• 

8.Ulmate _ (M.ryllnd Ino D.C.) ••.•__ •••::: tH ~:m s~ ': " I, 411 

, 

Clmden ••.•• _. (5'" Id) below) ..•'" ._......••••. 5 ll' 2 

'H 

"

,

,

., 

" 

'",

, 

-, " N....rk. ••••••••••• (Seo d)b~low) 111 106 12'J 8 I, hl7 M 

2.939 , ~~\I::~~~~~~::::::::::: g:~I(~~~::6:1::::::::::::::::::: ~~ m m ~~ '00 

1,117 , 

Sc."nton......•••••••• ISee i) below .. .- 5 131 42 I " -", W,hninglon •. •••••• DellWO,.) ..••••.•••••....••... I 11 11 I '"" ~" ,

• , 

I,SIIO 12,UI '" "­ " '"' •

, s: 

, '", , ;;1 " '" 0 San f~~~-~::~-:Fi:~::~)~1~~~;~::~:~i:::::~~~::jjj~~~~ (.) I~ "~!i 5i! ~:: '" '00 " _._.........-

(" (0) ,


los ngel ISe. Co) b,low). .._ .::::: ::~ 63 ISO 171 " 3,m ­ Phoen" ..••••••••••••• IAJllOn.) • .• •...••••. 10 12l 23 2 " "" ,

, 

"

, 'i 

0 ',erllond .• • ••.•••• O,.£on) .••.•••...• •..•• .. .•. 6 .1.41 46 2 I, l1G ono •••••.•.•....• Ne..~.) •..... .• ••.• ••...•••. 4,491 16 5 " " l:1 '" ~"Ill'k" Clly.•.•.•.•. Ut'h) ••.••.. '.... 3 192 21 .12 '" '" -, .n Fr,"C""" •••••••• (Sec (I) balow) .•..••••..••••.• 27 I!lfi 96 ) " 4. ~~I

Se.lU•.•••••••••..• (Wash,.,len) . ..•. • ..•••... 9 965 75 11) 

'" " ­ "." I, l15 , -," om'i;II! 1"I..naU Oper.lI""" ........................•_ -------- - -.. - - - . (0) M , ............_­

Undl~l~m~~~i~;ii;I:; ;;i~ip:I;::::::: ::::::::::::::=:::::::: ::::::=::==::: :::::::::=:=:: :::::::::::::: :::::::::::.:: ::::::~'!:::::: _____ '*_. __ _j' ········98;35j. 

Tetlls 10' Siole. not shown abeve 

u, w ',W W ., " , (0) " 1,319 • .. I,OBl

-", ,

• " 2,318 

"

•

, , , (') "' ... " Z.6 " M

, " '" (0) ,

, ", , , '"

, "" n 

1,197 n

,

" '" •

• I,~~ I:' 0 (') (0) 

) , 1,039 ", ", 4 , , 4 "

1,222 '" , 

,

" " 


 

(.) Cllilorni••••_................. !Ill 365 Z61 8 54 1,~1l 12'6 56
 ~) lIIino"_ ....• .. _........ H I,DlI ZH 21 .:16 4,61l 51 82
 

c) Missou';...................... IS zn 119 5 20 2,260 J2 22
 ~)NewJe'sey •. _••••••.••••.•••• 111 2~Z )!5 lD 152506 9 U
 (.)N.wYo'k••••. •__ ._•••••• 19R '44 3fjO 13 I~l 6:222 ~6 337
 

(f) Ohio •...••••..•••.•_......... 32 51~ 290 ~3 2B5 4,601 16 -14
 (~) P.nnsyl.MII_................. g~ 1,061 290 4B 310 ~,.125 )7 -g_
 

_;:::~~:-;;;-_,(,',),',..,.,',I.,.,.',.,I.,.,.,.,.,.,.,'.,.,..,.,..,L ,',.,L ,",'..L ,",'..L '..L '~'-l '~'~'~'-l "'::"-l '~' :J;

r..,IIlClI.. on g. 15Ii. 
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:- :" 

-~~-* ::: ... ",... ... ::t;81~ c

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p ~.;::Ji~ .l':! 

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 1
 

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7 7 C'­ r 

7 

Tobl. 4,-rnlemol ...nue collO!c1iont by principol lourcO!I, IilCol yO!Ort 1940 throu9h 1962 

lin thOll.."d. of donars! 

I (,II(~ and aill I•••, 

Fist.1 teor .nded In". 30­

(>J 

1961••••••• _________ ••• __ ••• "••••• _.••••••••• l.lUS.l81 1961••.•••• __ • ______ •••••••••••••• r •••••• __ •• 1.915,392 ._ •• 0 • 1-626. :l48 

1959•••..... ______ ._................. __ ••••_. 

1960. _•••••• -------_._-_......... .
 

1,3R9B2 

1,410,925 1958................................ ____ .•• __
 1957__ •..... 1,311,999 ~.~

1,171,237 1956...........____ •:::::::::::::::::.... _
 936,261 

19$4...............____ .•... __ " •• __ •__ .... .. 

1m...... -------_._...--...------......... .
 

915,121 19S1.._________________ .... ______ . ______ 891,284 

1952______ ..______ •._._. __ ....... __ ....
 al3, 1t7 - --.­ 129, /31J 1951..•••. _ .....----..--- .. 10ll,221 

1949•• ____ .....•...........••.•.•__ •. ______ •. 

1950____ ............. '. . .......--.----.--.
 

196,538 

1948. ____ ._ 899,345 

779,291 1947•• __ ..............:::::::::::::::: __ • ____
 19l6. ____ ..•____________ ....... ____ ••• _______
 616, an 643,055 

19~.",., ....._•.•.... __ •• _...... ______ •. __ •. 

IglS..........,.•••..... __ ••..••••.. __ ••. __ ••
 

511,210 

11141................... ______ .•... _._ .•... __ .
 147,496 

<31,540 I!ML.... - --------- - - - _....._----.. 

AI'nnol 

(.... ' 

(OJ 

fob.eeo 

,..... 

(l) 

Manuf.o;1urers' 

exci,.I..., 

(OJ 

All olh., I..., 

(OJ 

1,1/.1,282 

3,212, £01 

2,025.735

1. 991,117 

S, 12O.:MO 

f, e9li, eaz 

2,264,817 

1,963,5a2 

J,l9J,lU l,m,504 4, lJS, 129 2,001,394 

3,OO2,Og6 I. 806, 816 3,958,189 1,991,292 2,946,461 1,734, 021 3,974,I3S 2,166,615 

2, 973,19~ 1,614.05D J, 761, 925 2,243.856 

2,920,514 1,613,491 3,456,OlJ 2,019,380 

2,742,840 1,51U13 2,885,016 2.0/8,8/i06 

2.7al,012 I, sao, 229 2, 6B9, III 2,4&01,859 

2, /111, 9H 1,654,911 2,Il62,7M 2.6-1/,492

2,549,120 1,56.5, ILl 2, J.48,!Il43 2,501,933 2.~6,808 1,380,196 2.383,611 2,m,719 

2,219,702 I, J28, 404 1,836,05J 2,214,951 

2,210, SOl 

2,255,327 

I,J21,m 

I, Joo. 2SO 

1.171,533 

1,649,234 

2, 2SO, 969 

2,206,823 

2,414,152 

2, 5,5, 16~

2,...309,856 

1,237,/68

<l.m:m 1,425, l60 

nl,611 

18t, 51! 

2,141, l84 

2,421,944 

2,292,les 

1,618, ns 9811,483 S03, _62 l. 7JJ,655 1,421,04~ 923,851 501,145 1,274,II4S 

1,1148,511 1SO,982 111. go2 m,6ll2 

820,056 698.017 611.JJJ 131J, 564 

624, 2~ IIIl8,SI8 ~1,e8ll 337,m

/941...... .--.--.....------......."'-- --...
 

Incgme, ~'ofil•. and emplo~fIlenllax""

Tol,1 inle,n.1 

revenu" Corpo,alion l"diYl~",1

colloction. Tolal in,ome .nd in,om. ".d 

prolil. laUI • "",plty",."l 

I.... "', 

OJ 

'" OJ ('J 

99, '40, BJ9 84.6~.H6 21.U~.11I lU,357.7n 

94•.101. tl!6 80,420,:191 21.]~.9ola 58,655,4S2 

91,114, £OJ /8.283.714 21,11i.• a 55,104,300 

79,H7,gl) 57,619,991 18, 091, S09 ~9, SSB, 4U 

79,918,416 ~I,146,260 20, S33,ll6 47,212,9U 

BO,I1J,gll 68,140,946 21,530,5,] 46.S10,n3 

15,111,649 6J, 931, 948 21,298,522 42,633,426 

66.288,692 56,134,490 IB, 264, no 37,869,170 

69,919,991 59,4~7,~]7 21.~6,1.l2 31,921,314 

69, 6Il6, 5J5 58,849,1J.4 21,594,5IS 37,2~,619

65,OO9,SIl6 5S. 2O~, 2Bll 2U5Ii.910 33,138,370 

5O,445,6Il6 41,on,151 1',381.569 26,624,788 

38,m,l1.l 30,652,2:1-4 10,854,351 19,791, Ral 

40,463,125 32,081,6114 lI,5~J,669 20, ~21, 935 41.854,~2 3J,553,m 10,174,410 23,319, In 

39, 108,38. 31,044,121 9,676,4,9 21,361,662 

40,612,097 32, ~58, 906 IZ, 553, G02 20, 4OS, J6~

11,SOO,JU 36,840,/D4 15,021,213 20,811,491 

40,121.160 :1-4,766,174 If. 766, 7i6 19,999, J18 

22,3/1,:186 17,191,S9J g, 11M, 956 8,I28,lU7 

lJ,1I41,669 9,I!I2,215 I, 7U, C&3 I, U8, 162 

1,310,108 4,396,9£0 2, 0!I1. 469 2,:1-4],512 

5,3-10,452 1,!iI6J,131J I. 14 I, !I'l2 1,815,SllI , ~:~ 1940..•. .- -- -- ---- - ---_...... ----....­

fooln"l.. on p, 156 
8 ••••

'" 0 - e­ o 

s:

•

!!: 

•0 • - • 'i 1 0 

I .. " - 0•

5' c•
Table S,-Inle"'al r....~null nt'und. including In'er~d

lin thoullnds 01 doll"'l 

Inl.rn,1 'ev",u. 'Olionl, dist,lcl., SI.I.., Ind otht' "03' 

(Stll.., ••p,..,.nted by .Inll. dlltrirn indlaled In "",.nlh..,..,; In!alllo' olll., Stites ,howo It boltom oItlbTt) 

TOI.I Go,pofllruo 

Inalm. 

0' ,» 

Ind,vldu:1 inoom••nd em· pl.~01ent 1.lu 

Elcmln "",, p'.""ym.nl' 

,,, ,<) 

Gill Elci•• I

(5) (0) '" 

ao,ISI 16,010,111 172,120 11,1105 1,6" 2:18,1" --------- ······I__'c·O·:":'c·':':'.j---===.j--"===+--===+--='::+---=':::1.__"''''' "'Ulnl. '0111 .., •••••••••••••••••••••••••• _ Atllnt•....••••••_•••• _.•••••••.••_ (Ceo,gll)_.••••_.••• ._____ 

Birm;nlh.m (AI.ham.).•.••••••••••••••••••_•••• CoI~mbil ••••••• ••• _•• •• __ •• (Soulll CI,oli",).•••••••. _._. ••• 

O'tensbo'o•• _••••.•••••••••.•••••• (No'th Cllolioa). _••.•••..••_•• _.___ 

1~t:~Yiiii;.~::::~:::::::::::::: ::: ~~~~dS:;~~?::::: ::::::::::::::::::: NlShv'II.__ •• __ .•• __ ••.• __ .•• __ •••. (Teon ). _ __ ._ .. _... 

...1.... '011...... __ ._•••••••••••••••••••••••••••• _••••• _••••••••••••••••• __ 

AugU!!I•..•••_•• _•••• _••• _ IM.ine).... •••••..••••••••••• B"'lon .•.•__ ._....••••••••.••••.•• Masslchusetls)..•.•• __ ..••• _ BUlllnilon•••••• .. __ •• _. Vel mnnl)... ••••.•••••••..••••••.•• HlrUord. .._•.•••••••••••••.•• (Conneelicut)•.••_.•••••_.. ___ fo'lomoUlh •••• ....._•• __ •" •••• (New Hamp.hl,e)..... ••••••••••••• 

P,ovid.nc•... __ •••••••••.•••.•••..• (Rhed. 1.llnd)_•• _••.••••• __ • : <:hIQt.....1...__ •••• _. ••• _••••••••••••• _.....••••• ••••• •••••••••••••••• 

&~;:f-:::::::::::::::::: ::::::::: !~j~h(,~~:)!~~~::::: ::::::::::::_... MiIWlu~te_•••.•... (Wisconsin)._•..••••.••••••••••••••_ Sp,inrfi.IL ._••..••••••• __ • (S!e (b) below). __ •._•••••• _.• __ <:In<lnnaU 1 __ ••• • ••• 

C"C'Mlt' .••_•..•••••..•••.•••• _. _ (5•• (I) below)._.. •••••.. ••••••.•.•• Cleveland __ •.. ..•••••••.••• (See (I) below)••.•.•••••.•••• __ __ 

l~~ji~~iW~:~s::.:::::::::::::: ::::::: s~ne~iunc'~ij::::::::::::::::::::::::: 

P"km'bu'g.••.••:.__ .•.••••••••.•• (West Vir£mla)........ •••••••.•••••• R,chmond __ • ..••••..••••••• (Vjrglnl.)_•••••_••• _._ ••••• __ _ 

~~~l!~i~:~~~1~~~~~~~~~~~~ji~~~~~~~·!·!?:~ri~~~~~~~~j~j~~~~j~~~~~~~jjj
 New 0'1..0'•••••• _. •••••••••••_ leui,ian.)••• _.••••_..•••••_._ ••••
 Okllhom. Cii)' ••••••••••.••••.• Okl.hom.).•._•.••••, ••. _. :
 

No.tr~7~y~.~::I:~:::::::::::::::::·1'~f.s:n~:~:l'::::::::::::::::::::: 80"'10.•• ••••••..•_._. •••• ••• S•• Ie; below .••.•••••••.••••_...• Maoll.tt.n.••••• ••••.•••.•• See (el below..••••.••••• • S,'acuse. •••••• __ ..• •••• ••• 5•• (e belo..- •••••_.••••• •••••: 

6U, 8n 91,409 

12, 035 '5,125 

93_ 0J8 

I~: 1~ 76,]12 

111,100 

25, 698 203, 920 9, 116 93, S24 11, ~71

32, 1\61 111. $2$ 

~: ~~{ 122, 358 75.710 

US, III 

126, 215 225, 513 

I~~: n~ 39, 39/ 101, B96 

~ll~m
 73,7Bli 

6S, [,olg 

~d: H~ 100, ~44 374, 206 

59, :l4Il 

Iz,.n

8,133 '. '"

3,lIJi 

5,218 

1,4<8 

I~, 840 

''',110

71, BIO 61.G41 

40, 117 

at,100 

lIJ,U6 

13B,502 

15,ln 

"''' 1,7311 

'" 1,631 '.000 4,84! 

I,UO 

" 

'"

'" " >0, 

· •,

, '0) • ---....25' 

3,m 68,758 1,823 '" " U,IK 

I, 643 26,671 

'" 11,101 

1,170 

4,849 

no,_ 

22,900 

169,~~5

8,174

71,43] 

16,1\2 

26,021 

1,5l0 

'" 3,712 

'" 2, II B 

1,2J.2 

1,Ul 

'"

,. 

" '" U, " Fl 

"

, 

"

,

• 

US,"'

58, lZ!1 36,911 

14, 1M 5,I!O 

n,l'7 

16,084 

S(~, DO 

nl,550 

218,161 

9ll,I76 

59,323

5n, on 102,794 

I.I,UI 

7,4\J 

6,012 

], S~1

I, BII 10,111 

1,89B 

2,1"

1,543

••

,~

'.~'"

'"' 

M'"

,

, 

'U

, 

30,730 

14,m 

4,1l6 

~,IB4

9,156 

186, I7a 106, B70 S3,703 

34,751 

92,760 

U'~~ I, ~40

,~

2,343 

'"" '" '" " '" "

,

,

•

, 

62,411 

1,9U 

19,626 

JU,lao 

24,IM 

m,~58

21,252 

1,G47 

6,B1.3 

1,012

,,, 

,m '", 

" 17,235 

1,159 

9],926 

28,346 

7,4118 

1,219 '" " 

"

, 

1,991 

~, 821 211,111J 

3,243 

14,595 

U,21l 

65,378 

5~, 012 51o,m 

41, 194 233,676 

S2,812 

2,189 

2,465 

19, t.l2 

"" 3,046 

1,093 

" '" ~'m 1,262 ,,, "

•

"

,

,

, 

181,015 

6,1)43 

161,650 

49,66~

13,442 ... 2,256

'" '0' " 

lI,au 

1,719 .~

1,121
 

4,311
 

I, '59
 

l.212 .. '."J,nJ 

•

•

• 

3,484 '"
 ,U "­

],057 >0, • 

a.m'" '" c 10,440 "'" "­

1, '12 

5,642 

B, 7!13 24,IU 

~, 166 3,313 

B,202 

1,380 

3,34S

.. 

'"
 U,IOS 

3,7115 '.... 1,176 

I, 122 2,141 

21,ul 

6,087
 '.~

2,210
 

9,711
 

1,6lI2
 

5 7 I 7 n rz T n m &:
 

Omlhl ....1 _••• _._ ••••• _•••••••••• . _..._•••••• __ •• • _._ 

Ab.'de.n _. ~Seoth O'kol')..•••.•••••.•_••••••• _ 

tg?~I~"~·~~~~~~~~~~~~~~~~~~~~~~~~~ fg:f~*~~j~~~~~~~~~~~~~~~~~~~~~~
 KJn,.. City __ ._ _••••. fS.e (c) b.lowt ..•.•••••••••.•••••• Om.hl.._. • _•._•••••• _••• _•••• (Neb'..kl)•••••••••••••• _ Sl. I.oui' _••••••.••••••••• _._ (S.e (t) below)••••••••_. __ ••••• _••• S!, PIU!. • . ••• __ • (MionesoU)_. _ _. _ 

WiclIlll.• _•••• __ •• _._._•••••••••••• (Kanl-ls)_ _._ _•• _••._••• ....lladolphll .ogl __ •• _. _._••• _._ ••_ •• _._ ••••• _••••••• _ _ _._ 

B.llimo'e.• _••_•.••••••••••• (Mlryland and O.C,). ".._._. _ _._._ Clmd.n. __ ••.•••••••••••••..•••••_ (See (d) b.low)..••_ . N!...rk .••• ._••••••••••••••••••• (See (dl belOW!...•.•••••- ..•••- •••• Phll,delphia_. _..• _. •••••.•••• (See (g below _ • _ 

Pilhourgh.. _.._._._ ••••••••••.•••• {See (g) b.low ..•••_••••••••••••••• Smntoo_•• •••••• _. __ ••• (S!e (g) below _ Wilmington •.•.•._••••••••••. __ (0.1.\11.,.) .."_ ••••••••••• __ ••••• _. 

55','21 

I~, 507 10, 0~5

64,339 

75,569 

16,029 

65,646 

3J,I!13 

89,348 

121,120 M.'"
 IU._ 

14B,821 

63,9]0 

194, ~SO

212, 10~

140,440 

10, 3g~

25,521 san ' ••n....1 ....1"".•_.•.•••••••••••••.•.•••••••••••••••••••••_. _ l,u2,n, 

B,263 ~~hr~~~:: ::::::::::::::::::::::: ~rJ:~~)~·.-::::::: ::::::::::::::::::: Ig,~7

U,264

~:~I~i"_- ~::::::::::: ::::::::::::: ~~:~1i)~~:::::: :::::::::::::::::::: :', !ll 

502,7115

~:"i::I_,,-"::::::: ::::::::::::::::: ~~~~~~~)~~~~::: :::::::::::::::::: ~.'" 59,522 ~~~~~~:::::::::::::: ::::::::::::: m~~~d~C ::::::::::::::::::::::::: 13,549 

Sill lake Clly -. -- -. -•••••-.-•.•• IUt'h). - _. _ 32, ~13

S.n F..nci"'o __ •••••••••••••••.•••• See (a) bele..-)•..' ••••..•••_••••• _. 283,708 

S!,IU•...• ._. • __ ._ ••••• _. W"hlnglon)_ ..•.•••••. _•••• _. _ 102,624 

.u 

amu oIlnl.m.II....1 Opanollon....._._. __ • __ ._•• _•••••.•••••._••••• 10.2" PUl,tO Rico .. __ ._ ._••••.•••••••.•••••.•••••••••••••••_. 3,720 

Oth!,.. __ _ _•••,, .•.•••_. __ _ 26,546 II C..d _•• _•• _._ __ _••_•• __ •••• __ •••• __ • 1,0n 

..no 41J,_ 1I,'ll; ,,, 1, -'TI 9,837 '" 8,310 .'"" .. 1:\ 

5, ~52 ~3, 472 2,750 

6,337 '" 2,118 , ... '.000 '"

'"" ...__ ......... "
 10,443 

17,004 12,060 1,798
 

.,361 26,993 m
 '" .. ,

, 

l4,152 63,951 2,156 '.'" 9.920 9ll..016 2,723 '" ,

, 

:l,22B ~B, 120 2, 05~ '" 

11lII,21' "1,1$2 n,m 2.JU '" .." 11.889 123,734 I, l'M 

,

23,313 

3,6~7

1l,6,633 

57,640 

3,m 

I, 6~2 "" "

,

27,244 171,558 1,453 "" , '" 22, ~47 113,3~1 2, gil 

2, 261 36,080 ,.. 13,474 II, l83
 ''" • "'.110 "7,2'1 J5,11I'
 '" I,~" .~ J,378
 

1,611 16,006
 

I, 44~ U,I6lI 

,

'"

.. '"

'"

'"

• ior"" 

2,098 21. 589 '" F 

15,6O!I 437,146 11,911 '" , 2,703 41. 416 '" " 2,699 6, ~ro 18,740 '. '" 

, 12,17J .............­ ,.. '"

, 

", I, 644 U,700 '" 2~, 3g0 241,376 8,511 

, 9,528 87,280 J,nl m '" " 3,010 U._ I,ll' ,n ----..........
 '0) _.. '" ··-'·"··-iOi· ...........
 3,010 I9,5M '."" 3,653 " -----.-.... ......_._..... ............ ---------..._....._..... ............_.
 

&J,X'

4,191 

'00 

2,350 

10,860 

1,460 

1,722 

4,224 

,~,

10,488 

B, 115 

~:m

10,218 '"
 5,266 

1,320 

1,246 

".~'"
 

1,581 

I, :;~

3,976 

1,1U '"
 

,~

1,503 

I, 763 '"" 

"

, 

,.m" 

"S.­ ".


., -


C 

C 

- 786,411 70,99a 678, ~22 23,laa I, 891 11,479 r~ Callfornll ...........---------­ b lIIinoh .. : __ ._•..•••_••••••••••: ~B8, .11 64,20g 29J,873 9,224 1,856

"

19,223

c) Missoo,!. _............._. _______ 15~, 994
 ~I, 156 108,002 3, ~54 , 13,615

d) N.w Je".y..._•••• __ •••••.••••. l~8,311 26,971 214,273 5,010 1,013 '" "

, n,03J

0) N•..- York_••••••••••••• _________ 845,210 219,107 580,997 19, J.22 21,619 '.000 .." (I) Obio..____ ••• __ ••••.••••• _._•••• 351,728 16, al4 288, 971 6,858 8,4J9

392,9311 51,952 323,99l B,I33 ,~ m~~~~tv.'.n.i~:::::::::::::::::::: 269,OJ5 36,861 209,IU 11,312 ..'" .. " '. '"

'." 'less th,n S5OO. 'Includ.., dr.wb.cks lod .tlmp ,od.mptlon•. I fli~le. have nol beeo reduoed 10 len.cl r.imbu'l"menl, from the Fede,al Old-D!e Ind Survlvo" Dnd Fed...1Disability In,ul_nc. T,us! fundi .moununlto S141,668,000 in 1962, Ind $95,7~0,00l In 196I,llom the H,ghw,y TWit Fund .mounting 10 ~13I,303,000 In 1962 .nd n2~,1 ],000 In Ig61, Ind lrom tho Unemplo~menl T,usl Fund Imoonlln£ I. $ ,049,000 on 962 and $2,2~5,OOO in 1961. 

• Nel 01 63,6Sa undelive,.ble ch!cks lol.llnK $3,347,000. 
Table 6,-Number af relum, filed', by inlernol revenue re,ionl, di'l.lel', Stalel, and' olher ortQ1 

Decla"liOns 

lnle'ft.' IOvOftn. "Iions. dish ids, St.les, IUd olh., "US Indivldu.1 ec.r/lQ,.I;"n QI estiml'ed (mldoymenl Tolal income II' Inco",e rll Parln.rollip I.. In~ III l"eo [sl.otet.. Girt I.. I Ex.... ll'n 

(SI,IH ,ep'esenled by .ingle dillrld. indi<lll'd i. p...nlh.',\.,: olhe, income 

tQI.11 'Of Qlh., Stale. ,h~n 01 roUM' Q( lable, lUtI 

'"	 (l) (2) (3) (5) (6) (7) to, (0)

UnU'" Slit lelel_	 , •.. "'J.KC',·=··,~g=·=I=·O'=':"O':":'+=':':":·" .='+_K=',~,=,C' 1,--"":'.C"':'C'je'='c'=':"=':"'1_-="":":',1 ':'"·:':·.I.-=·'"~='=·:'

...t1e"'e.""'en U,lS8,U1 1,1118,111 132,11] !aI,'" 1Ilol,171 2,"1,1:1' 1,(72 10,1" 'OJ,07 

~l:::II:ilii;,;:::::::::: l~i:b:~k:::::::::::::::::::::::: 1,715.965 I,::~~: li:m 11:~U ~~:~ ~}~~ : l:m ~?~ CGI"mhi. __ .•••••••••• \SoUlh Ca'olin.) •••.••... _...... 1'::M~ 618,535 9,5-52 ,r,.'~, 43,416 2~S,2&.1 ,,~ ,,"",., :!',",,' t'ele'beIro NorlhCl'olin.) ••••••.•• l,g:;: 1,359,520 21,102 '" • 109.878 529,620 ...., ... ,...,

j:~~;ili,;:::::::::: ~~~~:Jpp'_):::::::::::::::::::::::: 2.67l.&38 d;2:~:~ ~U~ 2~:~ 2~:m ll~:~~ 2,rn 3.m I~U~ N.,hvill (Tennesue)..•..•••.•••••••••••••• 1,6S6,3Z1 1,057,469 !J,870 U,612 80,691 394,169 10S 1,081 89,521 

.ertAu'g~~~:'_~~~:_::::::·-M:;in~j::::::::::~_:::::::::::::::: 6'm:m ~'m~m ~;m '~:m ~::~ l'm:m I,:~~ 7'm ~:1g Bo'lon.•.•.•.•••.•.•. "'u,"thn'.ns) 3"~",,.~;J 2,012,183 51,093 15,m 29O,9~1 584,481 2,nn 3,361 102,947 

Burllnglon•. __ ._._ Vermo"I)•.. -. ••••.••••. "'" 134.631 2,686 2.111 15,317 51.268 112 210 Il,Ul 

~.',',',!~o'".t._ Conn.cllcnl) 1,,'l,','~'?: 983,698 23,599 lUll 153,6lJ ~13,841 1,2~J 2,~91 56,990 , .. ~.w Hampshlr.) ••.•••••• __ 236,341 5,~05 2,260 28,666 8UIl 291 262 ,',','.",' 

Pro.id..ce_ Rh<Xlelsl~nd)...................... (90.560 321,173 9,fl9O 2,ua 36,~1) 97,206 31~ ~61

Chl e l_ ._ 11.15O,S$oI 1.n',1Io UI,lSJ 121,111 n~"1 2,U',IU ',21J l1,UJ ~"n,,~7,

Chl"fi'--•••••••••••• lsee ~b) below) __ ~,I5-8, 732 2, 7'5.12~ Sl,305 ~1,6!l1 318,516 m,I52 3,667 '.0101 "" 

~,t::.~k-Oi.::::::::::: ~:~~o~~~k::::::::::::::::::::::: tm: U~U::J H:m ~::n ~~g~ m:m Hfl U~: li1;m Sorin£held.- __ .••••••• Se.(b)b.I~'")..• 1,519,677 973.9" 10.939 la9(5 112,723 W.l~3 1,676 1.321 1\6,977 

CI""nn.'1 '''11_.. -. lJ,($4,U3 '.DO,(~ n5"m lOS, II> ',~,,'W'." 2,JI1,J" 7,510 11,1'1 "J,ISlI 

Clnclnnati_ .. ._ .. !'''I'I'''''IO'") ••••••••••••.•••••• 1.996,668 1,311,42l 21,315 16,&16 • :m.119 1,496 ,',"~03 13,437 CI."IMd ••.•.••• S.n I h~low) ...• 3.OZ4,355 2,00I,2~6 la682 25,2U 227,326 582,75~ 1,98~ • 138,264 

Indl,m~.I1' ..----.-•• lildlana):.••.•.•••••.••••••••,••••• 2,357,889 1,568,011 25,340 21,887 170,894 4]3,160 l,~ 2,199 2,','~'" LonlS"" K~ol"'ky) .. _._._ 1,.J~'.',',.8 859,142 11.181 ll,451 86,373 304,U2 "". 915 ,. Parke"b~r~. •.... WnlV"~'"i.)...................... y, 523.818 9.305 9,100 46,064 172,111 3(9 533 42.898 

Riellmond. __ •......_. Vl"inl.).-.... _.- ••••.•.•. l,gJ>.515 1.275,81l 1~.386 14,887 114.181 U3,52l 1,125 1,607 74.989 

D..I~~bu":~::'q;,;,·.~~:: ':::'\'N;'W·",;';K;;)··::·"·'·"'::::::::: I'm:m s,m:m Ij:rn l~:m ~~:m 1'o;t~~ ~'~1 I'i~~ ,";,:.~, ~1IS\i~_ 5eel"llleIOW) 2,516,356 1,562,1!6 25,(~1 ~~,"~' 182,.5&3 ~,,~,7 1,303 2,699 ." 

n.	 OIH.$....__ • See h below) 2,253,762 1,373,028 2Z,I1!i ,,",. 1)2,>1'9 ""."., l,~ Z,~49 102",,',.~, ¥	 ULHeRock .•.. ArhnslS). ... •.•.• 718,919 168.m 6,514 9,3&0 39,6~g 201,1~ ".,. 792 

N.wOrl ••ns ......• (LoulS,an.) ._._ .••••••••• 1,339.594 aloI,((19 15,240 12,~25 91,361 311,957 511 Sll 12,sm 

OklabcmaClly .• (Dkl.hom.) _. 1,1(8,3,1 121,196 10,9J8 12,639 74.052 265.134 824 1,324 56,250 

'"'-wYe,kC'''' ...len__ .• __ .•.•••....• ....•••••.. 10,J2!,UJ 1,510,115 2'!,On 101,'" 1,1l30,!1! I,Jn,n1 !,UI 11,5011 n~lIo

Alb.ny.••.•••.••....• (SU\'\bC'CW -..-.-.-. 9-41,&61 ~1I,108 11,684 8,591 55,986 193,396 957 849 42,400 BrDOkiyo : (S-",. h.low __ _•..•••• 3,57),O~6 2,3IJ.383 59,197 34,852 300,463 692.544 3,S.15 3.S13 99.469 

B"llolo.•.• . ._ IS" • below. _•••••.•.......•... 1,378,756 919, 1M 11,515 )1.,8> 108,333 2SI,OSZ 1,203 1,344 SI,SS7 

M.nhallln .•.•._. .lSo. '~beiowl __ 1,866,678 1,986,328 130.251 43,208 492,005 1,013,958 3.~ 6,423 130,296

~.·~i·••'.".'.".'.'•.•~;.".'••'.';.;8•••~.'I'''IIi.'.M.''1"••••'.717.m•••'.;......''."1Ii••1III~9

O"'.h 

A~.(d••o C~n'."n

---­ _.• 

...• __ ..•.•• (SQulh Dakota) .....• _. __ ._. (Wj'(Imlol) .. ,,_ . 

I,Ut,UI 

1Il,803 

198, HO 

I.O'D,9" 128.995 

1l1.176 

lOJ.'.1 

3,557 

2,585 

117,172 

S,089 

3,313 

'5oI,U7

]l,Ul 

13,636 

2, HI,'"

93,200 

U.490 

,,~

'" 

u,ns m 

'" 

_,Ks 

22,OSI. 

U.(8l 

g;:'M~j;;~;:: ::::::~:::: If:~O.)"d~).-:: ::::::::::::::::::::: 

rtrro -•.. -----­ ..• 1N0t1h Oaknl.) . . 1'(,0" City..•_.... ••••• 5e1 (e) below) ... _ _.••'" 

(lm4hl ..•••••._ ..• Hebtl,k.) ..•.. _. ._ ..••..• 

51. Louis_ . 1s•• (e) below) .. 51, Plnl..••••••._ ..• Minne,oT,) ." ••._. "" •.•• Wrchita .•.•• K,n..s) . , __ 

1, 019, 211 

1,561,218 

332, 867 

1,011,1()( 

SlIl. !!l!2 

1,321.251 

1,799.798 

I, 205, 04~

632,451 

~55, 389 

'00 U6.626 "" ~13.all

820. 9~9

I, 1~9, 23~

Id, OJ~

13, 070 

12, &31 

"'" 10,411

',m19,021 

20,693 

9,715 

14. Zl5 

21,286 

I~:~~ 12. tlB 

n,U6 

21, ISO 

n,702 

95.751 

I:J,.E. 310 

15,01) 

73.685 

59, !062 

Ill, 546 

128, III 101.310 

21S.913 

35J, ]I)(

eU!iO 

1Z~, OZO 1~.614

29~, &.19 

3110. 'l9ll 

270, llll5 

2,273 '" 

,. 

'" 1,024

I,U8 '" 

1,286 

1,31l6 

1,511 

'00 

~,

I, 4~9

1, 1>lJ 

I, lSI 

I,OS8 

~5, 101 H,2~1

18,8111 

:U~ 55,513 

~g~ Phll.<Iolphla ,~'''"_.. .....•..• .•••••...••••••. _.••••.• 

Baltimore .. __ ..__ .. "'''yIMd.,d D.C_)._ ...•••••..••• C,md"o _. Sen (dl below) •• . 

n.Ju.'Jr 

l. J7~ i35 

l,U19,300 

1,1e', DID 1,55(,821 

668.975 

U7,.'1 

29.653 

14,382 

1000,IU 

1~, BlG 8.m 

til, IDS 

186,029

1J. 921 

1,5u,ln 

500, IS' 

221.7\6 

',ou

l.UlI 

'" 

11,111 

2,225

,.. UG,s'J 

8~, 722 

38. 1165 

Newa,k 

Phll.delphl~

• SeO!dl bolo,") See 8) b.low). • . 

. Z. ~19. ns 3,1~1. (~2

1,516,057 

2, 145, 918 

54.4(6 

31, J76 23.994 25,151 

217,773 

'163, 57~

5J5,161 

&.I5,91l6 

2,246 

2.484 

2, 681 

2, 141 

11. 251 

122.292 Pit1sb"r~h S~. g) below) . 5ellnlon See r> lIelnw) ••..•••••. Wllmi"gl.n . _' •...••..•_ Delaware)... . 

.." r .."dooo len '_"'... .•••••.•• AnellofIEL .•.•..• (".I.sl<o)_._ "' 

80ise . ._ __ _. (Idlho) .­ . 

n:~e~~ili::::::::::~:::: i~::~jG~~':: :::: :::::~: :::::::::: 

Lo,An".le,_ ... _ • (Se.(I)b.l.w) __ •• __ • __ •.••••.. 

Phoeni ••• _. -." ••• -iA'I'OO").---.. - .. PGrlland ...•.•.•.... ____ Dro!o") __ ._ -....•••• R.M . ...... ...da) -. .•••••...•••• 5,11 IJIk. Cily . . Ul,h) .• .­ __ . 

Son r"nei'co.• _.••••••• (So. (I) bel.w) __ •••••••..••••. Selw•...••••••._ (Wlshln£lon) .•.••••• .­ __ .,. Olft.. et In no.l_ 0 " __ •• .. Puma Rico_.-. _•.••.•. _......... . Olhef. . 

2,QR399 

80(,337 

266,611 

1I,tu,lOJ 

9~, Be 

354. 'l45 

381, S3~

354,731 5·m:m 

9I!6, Il~

190.710 

444, (21 

3,756,905 

1,558,377 

~21,011

17l, 36lI 

249,44B 

1,359,3J2 

m.61l 

160,230 

',ln,I" 64.113 

m,l38 

121,1IJ6

2(0,27S 

J, S1~, 134 

.26,621 

618.624 

121,425 

'197,208 

2,394,2l1li 

988,3l2 

Nl, ..t 

24,200 

1)9,209 

IS.4n 

6,3118 

5,l8J 

IU,"" 

1, 16~

3,5a2 

4,6/.0 

4,295 

7D,193 

8,305 

9,959 

2,656 

S.8S5 

33. 3501 

11, ~46

M 

'00 

20,346 

7, 4~3

I, 599 

111,_ 

1,316 

',,", 

~, 855 

3.331 

67.0,9 

7. JS2 

1(.601 

2, 651 ~, 1~1

51,36S 

17,m no, 

,~

156,656 

57.600 

~. 2116 

1,IM, .,. 

3,2.\.11 

20,692 

25,411 

27,924 

491, ~25

19.011 

7~, 026 

13,552 

2S.30] 

345,618 

118.130 

IDIi,~I~

44.61l 

61,IIOZ 

388,70a 

ISo!, ~81

62,601 

2,lft,U' 

18,7Jl 

~:~~ ~,,,"

1, lllll, 969 

143,857 

nO.iJ2 

38.997 

R~, Jl9 

m,999 

326. 001./ 

1",1"

JIOO.W 

6,001 

1.297 

'" '" 11,·n 

" .. '",ro 

4,191 

'" '" '" 'OS 

3,717

.. ,~

, 

"'" 

1,121 

'" ~,

n,QI 

m

,." 

m 

5,318 

'"

... 

,"'" 3,916 

1,001 

'" " '" 

OQM 

31, 11~

..... ~,~

,.., 

19, &.Ia 

21,031 

l~, (82 

181,260 

28,914 

46,751 

11, liD 

24,150 

152, S'B 

88, 1162 

,n 

m 

,~

lal.ls fnr SI,les not ,IIOWO Ibo,e 

!l C.lilomi•..••• _•.-.-. .........
 5,919, U22 103,547 IJ8,424 831,603 1, 8~6, tl6a· e, soa 9,2'l4 33~, lS8

tI Illinoi., .. ______ ...•••.••••••' ::m::~~ 3,119,611 84,244 66,632 491, 23~ 1,132,295 S,3.41 5,381 19J, 6C~

c) Mlssouri_ 29, ~32 18aHI 519,1169 1,592 2,441 91,99] •••••••. _ ----....... 2, 3J'I. gil
 J. 461, 585 21.622 

d) New Jersey .•• __ ..........,.. 3,519.015
 2. 3~5, 032 68,828 32.726 291.100 759,011 ',,,," 3,429 ll~, n3

e) New Vnrk -_. -. ----.......... 10,129. (21
 6.560. !l3S U~,OOl 108,940 I,OOO,9a9 2. 3~1. 713 ~, 191 12, SoU 3)O,lgO

I) Ohio .•• _______ ................ 5,021,013
 3, :m.668 60,011 41,860 ,"",," 916, '33 ,.., m,lOI '.Il5J ~) Pe"osyIVllnia__________ •..••••• 6,010,))8 (DR121 5J,211l ~3, 950 477,8JD 1,190,095 4,210 2(Q,906

( ) Te.n .. _..................... ~,770, 118
 2,9n.l~ 48,193 61. 7~2 29S, 112 1,IIl9,&:J,.E 2,569 2Y<',256 "~. ""II' J (<<:1",,1 Un"",plo,meol la. At! •• Tcndl'd 10 Pu.rlo R,co "oder ~rov",ool 01 PL !6-178 dOled Seple",her 13, 1960, 
I_'S'""'!'--__':~:~i~~:~~-'----'"- ,....'----'i'i"-_;,=:"~.·.s~o"__,", ....:......--'__..._~ : Ii -~.!':....._... ......-..... -

~~~ ~i~e~ S~ ~~~: e~~~~~

::: 

s;: §)s 

-~ 5§~ ...Ei~i

,i

.' 

o" 

,

;.

, ,,_a_'ll'__.7••__ F n ., 

nm F 

• 

7 7
 7
 

. ..."!!. .0 ::l. 

~.

-.

> 

, 

­ . .­

.­

.' ,>".,

'­

, " . 

:~

.-N'" .... : :a= ;;:: 

.", ~. ..... ~.... ..II ...... 
1,391 ~7,::~~:~:~~~I~:::::::::::::::::::::::::::::~:::f.~:~~·,I~::::~§'~I:::==~~'~I::::::~:~I~:=:j;:tl:::j:~i:::::tl:::~~I:::t~ '"

, • ."

"

'"
 1,381
 ~~~:Hkimi;'iied:: :::::::::::::::-::::F~=;'~,~J~l+·=··=·=··=·=··=·~·~~'~'I,~'=''='=''='="='~'"';'~'I~'=' ='=''='='.=.~.,~,~. r'=''='=''='='=','~1j~'I=~~,;JH'=" 'ii' " " 

"­

1,723 11,074 ,~ ~nme::.'r•.l.~~~.~.~~~::::::::::::::::::·:::::· Itm ~ll.. ..__ ~~2 .••..•••_••~~~. "" , helud.. pe,mits 'e, Custem, manu'actu,ing bunded W...hUUI~ lin,••",~ ,.I.bli.hrnanll a,. n~1 ,e~ul"d to Qulily "' dil1,IIed IPi,i11 pl101, (I """~O"linllnd botllinl p",,",t, and 15 

,ecline, p.,mits fu, Cu,tom, rnanufattu,ini bonded wa'ehoul's In ell.'t on Jun. 10, 1962). I Column (2) de.. not flp,esent the ,urn 01 (3), (4), ,nd (5) lin," uno POI mil may ,nve, 010'. I~U ene anivit" 

i

•

• 

"





o. I 3 

 

if 

.~~ .... ,

-~ • ............. l -. >

J'~'-I 3 " .. >r 

I • ,,­ ~E]* , .it"'~

· I~ 0 -- 8 " t ..-, .­ ~~! ,. . --; 

-. • e ;!:~ _l; ~,·I~ ... ", 

0 

• ft~ .,., ...... - -.

I 0 

~1 s .­

" , ~'81· ,. 

-~ ..."'0 ... 

,O?,....;:: 

i!§,,~ -

S -:;;~~j]

~~e!;

8"""''''

- :--....... 3 .......... 

~;:;;::;;~

~lI:!:::~

'lI!:b;"~

.." 

S 

0 :di 0­

2. H

• .~, "" 

3

, >, ;1 ,. ; I: t !

, 

• • I
 

0 • , i 

• , 

•• 

,

.-

".--.; 

0 

0• 

TobIt iO.-QHic:'l' of Chicf Counlel-Re<clpt and dilpoiol of Tal Court tCI'H' In CQurh 01 appeall and in SlIpremc Courl 

In Supromo ColIn In ClIUrU '" "ppul. 

Amounl in dl.pute Amouollp~'a¥ed Amount In dJl~ule Amouot ~~prov'd

.­ (tbou,,"od doll...) (l~ou"'M aoll...)
 Sl.llus (thoullnd doll...) (lhou,,"od doll,") _-'-__, __-'-_ \ , \ Num~,. or Numllt. or c.... \ Oe,j,jeo,y Ovar· Oofieioney Ove•• De'ideo" D.'ioieo" 0'0" 

.nd p,n.lly ,,",moot aod peollty plym,ot Ind penlll, paymeot .nd peoll!y 

I ,,, (Z) I (]) (4) (5) ~) (10) (OJ 

hndinl July I, tela). --------. -------•••_._.-... ',---:"';;-1--,'0'.·"''''+_-i'.~'"Hd'C'C''C'C''C'C'C''C'F'C''C'C'==+ __-;;-',-- U8J 1"'===+==="'1==== 

Appe.led by COmmissIDn.r. ... .. 4& 4, ]91 4,252 •• ••.• 13 1341 

:g~:::~ ~~ l."oi~~~~;~::::::: ::::::~::::: ::::::: 31~:"It~..,'i~:~1".~"~1 ,~~~·~l~:~I;:;::":;::":;::":;::;1 C::C:C::":C::C:"::;:l'"';""'"""'"'~~'~'I;'C"C'C' ce''c'"'; I;"C'C'C"C'C""'~" - . APPNled, 101.1.... ••••••••••••••••....• ~~~~~,.ro~-1-_0"O',,"C'-',__C"O''CO::'-I'C'C'C"C'C"C'C"I'C"C'C'c'c"c"c'\ c'+ ~:;_I==ccccl=cccc=ICCCCCC'" K~ ~l~m;.i~~~~;::::::::: .::::::::::::::::::::: l:~ 15, m u, On :::: ::::.. l ri ::::::::::: ::::~::::::.
 

By both •••••---. -••••••••••••••••••••••-------I ~~~~'c"I~~i·'S"";'I~~=;·.·"I;';' ';';",'c'::""';'1 ;";'''''~~;I"''''''''~cl c·"';·'"';'·c·~·'"'c'I;'cece"""lce"";;'·~·'::'l';';' ';'"""'"";'"'
 

Djlp..ed ai, tOIII.-•.••.••••••••••••••-•..•.•- 1-__"'", \--c'o"c""cO I---'o'"'+-C'O"~M,,,,' ,I----'~"ci---"'"',--c'-· 'c';' I-----I--'c'"""'+'c"c'c"c'c"c'cc"
 raVII"bl~toCommissiooer ••••.. ••••••••••• 1&3 10,616 714 10,569 li6 1,14' ... _........ 1,149
 

f.VIII.bletotll""yell... __ ...••.••••••••••••••• so 1,452 41 _•••••• _. II 21 •..••••... _. "" ..
 

ri~~.:.::::::::::::::::::::::::::::::::::::1~~~~:"I+~+"'S:"R~\~~·"' ';'~-'.'~"'I;'"' ,;,",;,,"'C'Cl;l";:;::":;:,":;::"~"~:+::":": :":;::":~::C: 1;:":;::":;::":~::":c:I;:;~:":"::":"::;:":';'1 ;::":"::":":",:":"::'I:":"~:;:"::;:":C::C: PendinllJune3D,'otll........................ 181 32,636 18,384 ...•••.••••. .•... 6 143 ..•..•••••.•••• 

Ap,..I'"" b, Commil:lOlO'L .•••••••••••_." I---,C.;.+--";,,~,C,C, 1---.c.",u;oI'.C,,C,C,C,C,C"C,',I_,,-,-,---/---c,cl,---c,+,-,-,-"C,-,,-,-"+,,C,-,,-,-,,-,-,-,,'I.C.C"C,C,C,C,C,C :~::~::~;&'~~~~:::::::::::::::::::::::::: ~~ 2}:~~ 14,ll\I~ ..••.•••••.....••....•••.•..•••••• •.•••••••~~~. :::::::::::: :::::::::::: : .••••..••_ 

'Tb... on.. pend,nl.t cion 0' lisa. J"OI. 1!Il51 II Commlsslone. Ippnll, _.e p,od,nl 10 r,sell ,tl' 11lEi2 n IlIlP"~' '~P"!I, thus OetOlllllllnl1 .eruioo 0' Commissioner and I"~'~I

,p~",s pend'"I.llM aellno'OI 0' file"1 yel' 1!l62. 
I ;;0,

7 _s

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n r_....

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--­ --­ -" '1­ _ .... _-:..;-;,,"';..,:..;,,"'."''0 '0 ....... "' ....... "' ..... "'0..,"''''_ .... O"' ... "'""WO"' ........,,,.,_ '" 

"'''"''''''''''....... '''''' :...... ;"~;"(,,."'~'i,,

~~~::::;:;:B/:l~~

....."':-.-.-.....!O"':-:-,- :-!"'F":C,,$>''?' ."'."'.""1".W.-f"$>' :­ ..... ....!........ $>'....!"......"":- ... _-'" "'­ ."'.'"!'f"."'."'.'" """'W"''''Oo'''''_ -"'''''''''''- '"-<».,"''''

NDC"""'''' ... .... ... _Noo"'''" "'''' ... ''''''w''' .. ..,''' "''''...,''' __ c "' _"'''' $!£i2~~~r~= """'''_O'''_",wN ;;:;';:.'~~j.'jt;: "'*~lilfgiillJ:! "'- "' ........
 

- -

"'.."'.... _00

- - """'N'--'",,,,,,, !".,,".o:-:-'",...!",...,...:- .wY'........." $>'~ .- $>'9....1'.]" ....."'1".... $>'.-:-.'" 9":- :- ,... ......
 -0"''''",,,, ~~~~;....~~ ...... -'" "'- ,..,,'" 9:!1a~~~~~~1!!~e~ g;;:;~~i;2~~;;~l3 ~:=B:~~:s :;g~:g~ !iER1~~~:2iii N;jg:;:;::~

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, 

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----

l~	 A••lIO! II.;.H 

lM ",.~tft't~~ t9 *'!MM\"* ~~~'i

~%l~l~

, ".,."........
 .._ "..._ .. '-"'0' ., _i!M"II\~~~tetil,":~~~"o,~

T 

.:Kc 

f,0 

11\11 IWJ Ml~ i'MK\!';li!lIl= 

'~\i1t'in~'­

'~ij~~r~'

;;'t\Vl'K;·l\t 

\li. IWliI 

I~~'t~ ~~'i1t~~tij €MI 

c~f

.", I; \l':l% I! 

...... "" I, \lill 

.... 100 

....-..-" ~~ .. @ ~f ~:W"~\1:f§~~~~~~o T,- ""o"",}. I\\e~~ o",}~~~,~~~.~~~,~,;:~~~~~~ ~~~~~~~;:~ \ ­ trw,11<."... I,U 
 

''m" '..- ­ Ol 0.	 t~

r:=."<.,~_".. ~~.~* &%.Ml i,lR 

1M!! Ii! "'iii

ll~~ 1", ~! ~.

n,~ 'l\~! .~

,,,.. III "..
 

1"11\',"1 ~- '\\ilf.\\l' 

t.U t!) 

1=1 ­

, -.".. ~~" .. ~~ti-l	 ",'a\~ \)\\iI\ 

IUIJl "'

.. Ii' l~_ \100 "...	 ,m

••

''''
 ,,,, I~ "'

"'"... 

\~~	 I,,," I! 

~M!	 I, iii! .. ....,
 ... '" '" ,,,'" ~.'" " 

:0'''0'' = ~-­

I,~m ~~~~;;;:~~ \!II
 

, 

(J 

,
 

,
 

A 

Acts: 

Excise Tax Technical Change~,

Federal Firearm~

Federal Tort Claimll. 

Tu Rate Extemion-1962. 

Travel Incre~

Adver~e Tu Court decUions .
 

Advisory group.
 

Alcohol and tobaua tax:
 

Authorization of operations
 

Chemical analysiB aud re!I<:arch,
 

CourtdecisiollS,
 

En(orcement acrivity. .
 

EuablliihmentB:
 

Index
 

Pu. 

9,118 

57,66 

"

65 

84 

40 

n 

60 

61 

127-129 

56 

Inspection of. OJ 

Qualified. 60 

Label activity. ' _ 62 

Mandatory preventive raw materials program, 56 

Regulaoorul. , 9,118 

Seiz.ures "nd arre~ts. 57 

SuperviBion, on·premi~es. 60 

Stati,rlcs on, 16 

136,140, \50, 152, 162-165 

AIlnouncementli. 

Appeals: 

Appellate Diviliion . 

Clooiug agrel':ment C<l.'i"'l, 

PmCe.l3ing of. _ 

StatiBticJ On 

Appendix. 

Area service cenLeru. 

A~seS'ments, additional. 

Taxes.) 

Automatic data pl'oce!illlng: 

ATlanta Servicc CenTer 

Master file, 

National COffipnt<:r Center. 

Pel"5onnel. 

SignificanT highlight!i. 

D 

Buen,," Ai"", tax conference. 

Bulletin, Internal Revenue, 

(l~8004 0-02--" 

'120 

40" 

36-40 

37-39,174-175 

111 

22 

(Su 

25 

B6 

25,76,81,85 

28. 16 

25 

n 

10,12 

c P&&"ll 

C'.arl)'back aliowancCII .. 24 

Centennial. 97-109 

Chief Coullscl, Office of: 

Analy~iB of case~ flowing through. 43-44, 

69-70 

Cases involving crimioal proleeution. 

Dispooal o( C<l.'iCli by. 

Ch~1 litigation .. 

ClaiIDl. (Su specific item,) 

Clo~ing agreement ca:ieIi .• , 

CoUection litigation legal services: 

Collections: 

Alcohol taxes, 

43 

69 

40,69 

12,40 

52 

16, 

136,150,155.162-165 

Corporation Utcome taxes. ' 15; 

16,134,150,152,155 

Disability and old-age insnranee, 16, 

17,134,150,1.52 

Employment taxe~. 15, 

16,17,134, 150! 152 

Estate and gift taxes, 16, 

,18,136,150,152,155 

El(cj~ taX"'l. 16, 

18,136,150,152,155 

Individual income taxes. 16, 

17,134,150,152,155 

Old-age and di!labilit} insnrancc_ 16, 

17,134,150,152 

Other. 16,148.150,152,155 

Railroad retirement,. 17,134,150,152 

Stamp ta~.. 140,150,152 

Statisrics OIl, 134-155 

Tobacco taxes, !4(), 150, 1.52, 155 

Unemployment insurance. IS, 

16,11, 13( ISO, 152 

\\'ithholding taxes. 16, 

17,134,150,152 

Commeudllti0l18, Special Ag"nt 

Zeldin 43 

Commwiontr' 

Contestofmits. 122-125 

Suqunary and lransmittal letter, ~,

J"rlt:>< 183 
" -

g.",

-.'0.0 .­ hI N hI 

"" '" hI ~~~~t ,• , " , ,­ S- ! 

~.

." g" 

-
 -----
186 Annual Report 

Interpretation and communication Pagn 

01 tax laws to talCpayel1l. 

Investigations: 

Delinquency . 

Discipli"ary actions .. 

Of applicants lor enrollmenl 

practice. 

Personnel. . 

Prosecutions reconunended. 

Statistia on . 

Tax fraud . 

3 

41 

90 

to 

90 

89 

44 

41,89 

41 

Wagering and coin~pcrated

gaming devices . 

J 

Joint Committee on Intcrnal Revenue Taxation. 

K 

Kil, Mr. Businessman's . 

L 

Laboralorio: 

Roearch .. 

Toting ' . 

40 

4 

61 

61 

Legal activities. . . 69-71 

Legillative activities. 6>-<;7 

Litigation, appeals and civil, results of.. 40 

Long-range planning. B5 

..
 Major administrative improvements .. 73 

Mandatory preventive raw mate· 

rials program. 

Management activities. 73-94"

Management development program .... 73 

Map of Intunal Revenue regiorn 

and districtll. xviii 

Martinsburg, W. Va., Computu 

Center. . . . .. . . .... 25,76,81,85 

M:athematical vuification: 

Addition·al talC from ... 30-31 

Statistics on .... 31 

National Compulu Centu.. 25,76,81,85 

National Office, organizational 

changes in .... 74 

o 

Obligations incurred, Intunal Revenue Service......... 82, 180---181 

ene' t;;.... ' p ...... !fM::,,,,.J'~•• ,.'.'

Occupational talCes: Pnl!"S 

CollectioIlJ . 148,150,153 

NUIIlIxr of 5lamps Luued by c~

of tax .. 166-173 

Retunu filed . 22 

Olfera in compromise . 51 

Officen, principal, Intunal Revenue Scrvicc. xiii 

Old-age irnurancc taxo: 

Collcctiorn , 15,16 

Relunds 01, ............• 19 

Organizational change!, National 

42! Office. 74 

PubliClltions, taXpayer-Continued 

MOlOrFuel Tax. , 

Mr. Businessman's Kit... . 

Objective of. . . . . . . . 

Tax Guide ror Small Business. 

Tax Guide for U.S. Citizens 

Abroad......
 

Teaching Taxe:s.
 

U.S, Tax Guide for Alicns,
 

Your Fedual Income Tax.
 

Puerto Rico. 

. Railroad retirement 

"

taxo: 

Index 

Page 

114 

4 

4 

112 

113 

114 

113 

112 

161 

Sup.eme CoUrt deeisions: 

Civil cases. 

Criminal .. , ..... 

Other couO! actions. , ..... 

Systems review and coordination. 

T 

Tax conventions , 

Tax Court, The (set als& Appeals): 

Adverse d"cisions.. , 

Dispoml of cases. 

187 

Page 

122-125 

125 

125-126 

B5 

. 94 

40 

175-177 

Tax laws, interpretation and communication of. . 3-13 

Tax(cs): 

Additional: 

From delinquent returns lie_ 

cUll:d ,. 41 

From enfon:erru:nt , . . . . 45 

From examinatiou.. . .. . ... 34 

From mathematical verifica_ 

tion " ".. 30 

Alcohol. 16,136,150,152,155 

Corporation income and profits.. 15, 

16,134,150,152,155 

Disability insurance. ,...... 15, 

16,134,150,152 

Employmcnt. 15,16,134,150,152. 

Estate 16,18,136,150,152,155 

Exc~...... 16,18,136,150,152,155 

Fiduciary incomc. . . . . . . . . . . . . 46 

Gasoline and mOlOr fuels. . . . . . . 142, 

146,150,153 

Gift. 16,136,150,152,155 

Individual income....... 16, 

17,134,150,152,155 

Old-agc insuranc". 15, 16 

Other , 16,148 

Railroad retiremcnt. . . . . 16, 

17,134,150,152 

Stamp. 140,150, IS:), 166-173 

Tobacco. 16,140,150,153,155 

Uneml'loymenl. 16 

17,134,150,152 

Withholding. , . .. 16, 134, 150, 152 

Tax model file., 95 

Taxpayer asmtanee elinics. . . 8 

Taxpayer asmtanc" program. 7 

Tax rulinli5: 

R"'Iuestlor .. 10 

Stati.ties On. II 

Teaching taxa program . 5 

Technical infonnation releaoa. 12, 

121-122 

Othu collections... 

Overas<l=enU. 

IOVeras<lessmenu reported lO Joint 

Committee . 

p 

Pension trust plans . 

Personnel: 

Altitude lurvey. 

Deputy Commissioner Harding. 

Employee-management rclatiofill. 

Equal employmenl program... 

Executive selection program ..
 

Incentive awards.
 

Investigatiorn .
 

Occupational standards.
 

Recruitment .
 

Stalfmg and redeployment.
 

.Statistics on.
 

Summer student program .....
 

Practition"rs:
 

Enrollmcnt of..
 

Stawlics on.
 

I Prepaymentll, exc=ive, refunds of, 

Principal officers of the Intcrnal 

Revenue Service.
 

Prototerl cases, atatistia on ..
 

Public inlOnTlation program:
 

Films, radio, and lelevi.lion.
 

N~ relu.so.
 

Other .
 

Publicatiorn, talCpayu: 

Condemnation 01 Private Property for Public Use. 

Farmer', Tax Guide ..... 

('..asualties - Hurricanes, Floods, 

Storms, Othu D~tcl1l, Theft:;. 

Information Guides .. 

!\.1Uccllaneous... 

-,,' ,-" 

16,148 

35 

40 

II 

77 

76 

76 

77 

77 

76 

89 

77 

74 

76 

75 

76 

90-91
 

90
 

23
 

xiii
 

37-39
 

5 

5 

5 

113 

'"
 

113
 '"


f 114
 

pI',';'"",,'., " 

Collection~. 16,17,134,150,152 

Relunds of. 19 

R"tums filed. 22 

RCCl:'ipt and proce:s!1ing 01 rerums. 21-28 

Rd'unds: 

Claimdor .. """"". 

Exc=ive prepayments. 

Statistics on 

Regu.lations: 

AJeohol and tobaceo taxes.
 

Amended ....
 

Documentary ltamp tax.
 

H"arings on.
 

New. """""


ReWued.
 

Reports program, 

16,18,19 

23 

19, 158 

. .. 9,118 

116-117 

liB 

9 

.. 116-117 

9 

. 74 

Reque!ts lor tax rulin8li, analyiis of.
 

Research program .
 

Rcaourc"l utilization.
 

Rclurns filed:
 

Classification and selection of.
 

E;otamination of.
 

Incre3.$l: in ..
 

ProccMcd in servicc centeno
 

Statistics on ..
 

Verification of. , ..
 

Re""nue rulings and procedure!: 

Analysis of.
 

Published .
 

s 

Service centCrB . 

Stamo faxo, statistics On. 

Statistical r"porting .. 

Supervision of the alcohol and 

10 

86 

84 

32 

31 

21 

22-23 

22 

30 

12 

118-120 

22 

166-173 

94 

,~

bocco induSlri"s, . 59--62 

Sup,..,me Court Ca5Cll. 122-125 

'_~:Ii~~ _~ '. ,.,".. .~(f.~~~:<o '0 .,',:):!1 
188 Annual Report 

Toba<xo t""'(o): Page u Page 

AIToUl . 57 Unemployment iruurance taxes:
 

Collection. 16,140,150,153,155 CoIlections.................. 15
 

R",furld.l; of. 19
 16,17,134,150,152
 

Re'IUIC'l of criminal action.
 ..
 Rdunds of. 19

R<:tUIni filed. 22
 RetUrIlB filed .. ,. _, ,_ 22
 

Sci.zUfOl ... 57
 

Stati!;tics on. 16,140,150,153,155
 v

Tort c1aiTTIII. 71
 Verification, mathematical, raults 

of. 30-3]
 

771 Viiiton, foreign. 92-93
 

Training: 

ADP.. 

Administrative intern program. 78 w 

Managem",nt dc:ve1opm<"nt pro­ \\'agering I.lIX c<Uo, rOluJ~ of 

78 crimimd a('[ion, 44
 

TreMury Decisions. 116-118
 Winn; TiUn coll"'cl",d. 13B, 150, 152 

""m. 

Treasury-Internal revenue s",rviro", Withholding tilltOl, by l:'mployer. ' 1G 

twit,··:i/k",. ""'" Ao"lo.~'

committee On atatistiCli .. _ 94 I Work flow in the Ser.,ice IlDd courl:i. 49-5\ 

U.S. G01/EJiNMD<T ""NTlN<; CffICE, \De~ o-----<I5IV 14
 

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