About the cover. . .

The cover of this report shows the 1976 Form

1040A with design changes that resulted in a

greatly simplified 1977 Form 1040A. The entire

1040A Form was put on one side of a single sheet

of paper. The design was simplified and the

number of line items was reduced from 25 to 15

.

Even more important, the Computation of tax

liability was simplified .

The new 1040A makes it possible for many more

taxpayers to use a truly simple tax form. The

1040A for 1977 is a rnilestone in the Continuing

effort to make it easier for taxpayers to complete

their income tax returns .

Introduction The continuing vigor of our self-assessment

tax system is reflected in this annual report,

which describes Internal Revenue Service

activities during Fiscal Year 1977, Gross

receipts, returns filed, refunds, and

additional tax from direct enforcement all

increased during this period .

When the fiscal year closed, I had served as

Commissioner of Internal Revenue for less

than six months . When I took office, the

groundwork was already in place for many

of the programs that were to be carried out

by the Service during the year.

One of our priority goals has been to

improve the information and assistance IRS

gives to taxpayers to help them understand

and cope with the complex tax laws . I

believe that readily available high quality

taxpayer assistance is essential to voluntary

compliance . We are also redesigning the

Form 1040 to make it more logical .

The Tax Simplification and Reduction Act of

1977 permitted substantial simplification of

the Form 1040A and we took the opportunity

to redesign this form and simplify the

language used in the instructions . As a

result, taxpayers whose tax computations

are unaffected by complex provisions of the

tax law will find this form easier to prepare.

Moreover, the 1040A is designed to

encourage a taxpayer to fill out a few lines of

basic information and let the IRS compute

the tax .

To help taxpayers who cannot resolve their

problems through normal IRS channels and

to identify obstacles in the system, we

established problem resolution (complaint)

offices in each of our districts. We believe

these offices will help relieve many of the

frustrations taxpayers feel in dealing with the

IRS .

Public confidence in the fairness of the tax

system is important to voluntary compliance .

People who willingly comply with the tax law

are entitled to feel confident that others are

doing the same. A trend that could have an

adverse effect on that confidence is the

proliferation of abusive tax shelters. We,

therefore, have developed a program to

identify questionable shelters early and to

rule on them promptly, This program also

calls for increased audit coverage of the

returns of taxpayers most likely to have

abusive tax shelters .

We have begun studying new methods of

classifying tax returns to permit better

allocations of audit resources .

To cope with revelations concerning bribes,

kickbacks and political contributions, the IRS

developed a series of questions which were

asked of corporate executives and others

during audits of large corporations . The

technique has been productive . We have

modified the form of the questions, and their

use in future examinations will be

discretionary.

In keeping with the policies of the President

and the Secretary of the Treasury, as well as

my own desire . the Service has placed

added emphasis on its equal employment

opportunity programs. This emphasis has

produced steady advances at all grade and

salary levels for women and minority group

employees . and has aided the recruitment of

prospective minority employees as well .

Our management improvement programs

show annual recurring savings of several

millions of dollars . Improvements adopted

during the past year will result in more

effective deployment of personnel, better

use of mechanical and technical equipment,

and more modern work techniques.

The President has emphasized the need for

reorganizing the institutions of the Federal

government to make them better serve the

public and for increasing the productivity of

the Federal work force . The size and scope

of Internal Revenue's operations, combined

with a constantly expanding workload of

dealing directly with the public, make *it

imperative that We respond fully to the

President's direction . We have begun to do

so and exppct to be well on our way to

meeting his goals in the IRS during 1978 .

Jt______L

Jerome Kurt

z

Commissioner of Internal Revenu

e

For wle, by the Superintendent of Documents,U .S. Government Printing Office, Washington,D.C. 20402
4

Contents

Introduction

Chapter1 . Assisting Taxpayers6

Chapter 2. Collecting the

Revenue 12

Chapter3. Insuring Compliance 22

Chapter 4. Date Services

Technical Activities 32

Chapter5 Employee Plans and

Exempt Organizations36

Chapter6. Internationa l

Programs 40

Chaptqr7. Legal Activities 46

Chapter8. Planning and

Research 62

Chapter9. Internal Management 70

Chapter 10. Appendix

Organization Chart 78

Map of Regions, Districts ,

and Service Centers 79

Chronological List of

IRS Commissioners (1862-1977) 80

Principal Officers of the IRS 82

Audit Charts and Tables 88

Statistical Tables 118

Addenda:

Statistical data used in the text and tables of this

volume are on a fiscal year basis, unles 0s

,. 1herwise noted . For example, data headed

977"Tertains to the liscal year ended

Sept . 3 , 1977

In certain graphs and charts, to illustrate the text,

igures have been rounded and may not add

precisely to the printed totals in the statislical

tables which are based on unrounded figures .

ChapterI

Assisting Taxpayers
6

Assisting

Taxpayers

The voluntary compliance tax system is

uniquely American. To maintain and

heighten voluntary compliance, the Service

provides taxpayers with comprehensive

information about the system and their

responsibilities and rights under it, Aware

that the process of determining income,

exemptions, deductions, and correct tax is

not a simple task for many taxpayers, the

IRS provided them with considerable direct

assistance ,

During 1977 the IRS continued to expand

quality assistance to taxpayers and to make

this assistance readily available to those

needing it . In over 340,000 contacts

sampled during,the .1977 filing period,

including a review of Service-prepared

returns, and the monitoring of responses to

taxpayer telephone inquiries, IRS assistors

achieved an accuracy rate of about 97

percent .

The IRS continued its efforts to place

Taxpayer Service offices near public

transportation and on the first floor of

buildings. During the 1977 filing period

walk-in service was offered in about 700

permanent offices and in over 220 temporary

offices set up only for the filing period.

These offices were located in the inner city,

business districts, and suburban and rural

areas . When necessary, hours of service

were extended for taxpayers unable to call

or visit during normal business hours .

The IRS again offered special assistance to

taxpayers who speak foreign languages,

Over 480 employees in 140 offices provided

tax assistance in Spanish and over 470

employees in 148 offices provided help in

other foreign languages .

Under the Volunteer Income Tax Assistance

(VITA) Program, the Service trained

approximately 20,000 volunteers who

offered free tax assistance primarily to

elderly, Spanish-speaking and low-income

taxpayers,

Over 216,000 individuals, an increase of 23

percent over 1976, attended approximately

4,000 IRS-sponsored classes conducted as

part of the Service's Taxpayer Education

Institutes and Workshops Program.

The Service made major efforts to raise the

level of public awareness of the Earned

Income Credit (EIC), which benefits lowincome taxpayers. With the cooperation of

other Federal government agencies such as

the Departments of Health, Education and

Welfare, Agriculture, and Labor, special

notices were sent to those considered

eligible for the Earned Income Credit,

Notices also were sent to taxpayers who

filed returns without claiming the EIC but

who apparently qualified for it according to

their tax return information ,

During the period January1 through

September 30, approximately6 .2 million

taxpayers claimed the EIC for a total of

approximately $1 .2 billion, averaging out to

nearly $201 per taxpayer. Tax filers who filed

returns only to claim the EIC received almost 5 percent of these credits .

During FY 1977 the IRS received about

100,000 written, 28 million telephone, and

nine million walk-in inquiries . More than 63

percent of these inquiries occurred from

January1 through April 30, 1977, when the

IRS received over 17 million telephone calls,

over six million walk-in inquiries, and over

42,000 written inquiries, for a total of over 23

million requests for assistance.

Over 90 percent of all telephone calls

received during the 1977 filing period were

on the toll-free telephone service . Under this

system, any taxpayer in the United States

may call the IRS for assistance without

having to pay a long-distance charge . Tolltree numbers are listed in the income tax

packages provided to taxpayers as well as

in all public telephone directories . Taxpayers

also may use the toll-free network to call for

clarification of the bills and notices they

receive concerning their accounts . These

notices are accompanied by an enclosure

that lists a toll-free telephone number and

suggests that the taxpayer use the number

to obtain assistance or further explanation .

The toll-free telephone system has provided

taxpayers with greater access to IRS offices

and has made an IRS office as close to

taxpayers as their telephones .

Tax Assistance

Taxpayer assistance vas plo,ided in 1977 to over 23 million persons .1 convenient walk-in locations . by telephone, ancl through correspondence. With the help of 32,000 banks and Postal Service stations, I

he IRS distributed 237 million tax forms and instructions during the year . 7
8

Tax FormsImprovements

Problem Resolution Procedure (PRP) offices

were established in 1977 in each district .

The PRP offices attempt to resolve

taxpayers' complaints not satisfied through

normal IRS channels and to identify systemic

and procedural problems needing

correction ,

Training for Tax Assistors was improved

significantly in 1977 with special attention

given to the Tax Reform Act of 1976 . Over

191,000 of the 15.5 million telephone calls

received at 74 IRS toll-free answering sites

were sampled to verify the accuracy and

quality of answers provided to taxpayers'

questions during the 1977 filing period.

Since December 1976, the IRS has provided

TV telephone and teletypewriter service for

the deal on a nationwide, toll-free basis

through the Indianapolis District, As a result,

hea ring-im paired taxpayers in all states

except Alaska and Hawaii now have access

to services similar to those offered other

taxpayers . In . May1.977, two representalives

from the Indianapolis District attended the

President's Committee on Employment of the

Handicapped Convention held in

Washington,D .C., to demonstrate the TV

phone and to increase the awareness of the

handicapped of this IRS assistance

program.

The complexity of the Tax Reform Act of

1976 and its late enactment made the

Service's job of simplifying the 1976 forms

and instructions very difficult . Over 100

forms were affected by the new law . In spite

of these obstacles, the IRS was able to

achieve some simplification. For example, to

make the Form 1040A instructions more

legible, the Service printed them in larger

type and with wider columns. To save space

in the instructions for explanatory material on

the Tax Relorm Act and areas that gave

taxpayers trouble in the past, the tax tables

were reduced from 10 to three pages . The

Earned Income Credit worksheet was moved

from page8 to page 2 in the Form 1040

instructions and was expanded to a full

page to give it more prominence . Also,

several infrequently used lines were

removed from Form 1040.

As a result of concerted efforts of IRS

personnel, and in response to the Federal

Paperwork Commission's request for a

Government-wide special drive to reduce the

paperwork burden, numerous other forms

and form letters were simplified, eliminated

or consolidated .

The Tax Reform Act of 1976 also had an

effect on income tax return preparers, Any

person preparing income tax returns for

compensation is now subject to disclosure

requirements and penalties for negligently or

fraudulently preparing returns . The

identification number and address of the

preparer, in addition to (he signature, must

now be disclosed on all tax returns he or

she prepares . Also, an annual information

report must be filed by preparers before

August1 .

I 9T7 Tax Forms

The Tax Reduction and Simplification Act of

1977 enabled the IRS to develop a simplified

Form 1040A for 1977 . The complex formula

for computing the standard deduction has

been eliminated and incorporated into the

tax tables, along with theallowances for

personal exemptions and the general tax

credit. The 1977 Form 1040A has been

organized so that a taxpayer is encouraged

to let the IRS compute the tax liability. The

1977 1040A has 15 numbered entries . with

all calculations on one full-sized page. The

1976 form had 25 entries on both sides of a

half-page .

Form 1040 for 1977 also has been

redesigned . The items have been arranged

in a natural sequence that permits filers to

start at the top of the front page and

progress to the signature block on the

bottom of the back page, eliminating the

need for frequent reference to both sides of

the form .

Other significant form changes for 1977

include an agreement with the Department

of Labor (DOL) to eliminate duplicate tiling of

the annual pension plan returns, Form 5500

series. Under the agreement, IRS is

developing a processing system for the

returns that will satisfy the administrative

needs of both agencies . The Pension Benefit

Guaranty Corporation (PBGC), which was to

have obtained data from DOL, also will use

the system . PBGC's annual report, Schedule A (Form PBGC-1) . will be merged into the

Form 5500 series returns .

Public Participation In Forms

Simplification

in a Federal Register Notice in March 1977,

the IRS asked for public comments and

suggestions for improving and simplifying

IRS tax forms and instructions . Nearly 500

written submissions were received. In

addition, public hearings on Forms 1040 and

1040A were held in three cities--Boston,

Mass. ; Portland, Ore . : and Oklahoma City, Okla .

While many of the suggestions would require

changes in the tax law by Congress, others

did help in reducing and improving 1977 forms . The improvements made in the 1977

Forms 1040 and 1040A will reduce the

Public's reporting burden on IRS forms by an estimated 10 percent . The IRS also will

sample public opinion on the forms through

a questionnaire included in some 40,000

1977 Form 1040 and 1040A packages,

9

Tax Publications

The Service di sributes a large number of its

publications free of charge .

During 1977, the IRS distributed three million

copies of Publication 17, Your Federal

Income Tax, 900,000 copies of Publication

334, Tax Guide for Small Business, and

800,000 copies of Publication 225, Farmer's

Tax Guide . In addition . the IRS furnished tax

materials on request to five million individual

taxpayers, 520,000 tax practitioners, and

400,000 employers . Over 32,000 banks and

Postal Service stations helped distribute over

237 million tax forms and instructions .

The IRS prepares many publications about

specific tax matters, such as disability

payments and business use of home.

Substantive revisions were made to these

publications in 1977 to reflect changes by

the Tax Reform Act of 1976 . and several

new publications were developed to explain

the Tax Reduction and Simplification Act of

1977 .

Publication 560, Tax Information on Set(-

Employed Retirement Plans an

d

Publication 571, Tax-Sheltered Annuity Plans

for Employees of Public Schools and Certain

Tax-Exempt Organizations, have been

revised to reflect the latest provisions of the

law .
1 0

The Mass

Media

The Service continued to use the mass

media to furnish tax information to the

public . In 1977, material prepared by the

IRS was sent to 17.850 radio and TV

stations, daily and weekly newspapers and

magazines . Service personnel participated in

6,288 interviews, answered 19,483 media

inquiries, and made 4,491 talks to

professional, trade, service and other

groups .

The IRS issued 7,916 news releases to the

media. These releases covered such topics

as services available to taxpayers, appeal

rights, tax advice for disaster victims, the

Earned Income Credit, pension benefit

plans, and various provisions of the Tax

Reform Act of 1976. There also were

numerous releases covering tax rulings,

procedures, regulations, and legal

interpretations .

Some releases, radio and TV scripts, and

IRS films were translated into Spanish .

Three IRS color films, covering the American

way of taxing . audit and appeals:

procedures, and tax information relating to

small businesses, were shown 97 times by

TV outlets, and 3,426 times to professional,

trade, service, educational and other groups

during 1977 .
1 2

Receipts Gross revenue collections in FY 1977 rose to

358.1 billion, an increase of 47 .3 billion (15 .2

percent) over the prece4ing 12-month

period. The increase was the largest ever

recorded, far in excess of the record $34 .4

billion rise in 1969 . Major factors contributing

to this year's strong advance were higher

personal income, higher corporate profits,

increases in the social security wage base

and abnormally large gift tax collections .

income taxes accounted for over two-thirds

of all tax receipts in FY 1977 . Individual

income taxes totaled 186 .8 billion, an

increase of 22.9 billion (14 percent) . The

gain was moderated by a reduction in the

amount of withholding for most taxpayers,

effective June 1, 1977, to reflect an increase

in the standard deduction under the Tax

Reduction and Simplification Act of 1977 .

Corporate income taxes collected were $60

billion, up sharply by 12 .6 billion (26 .6

percent) .

Employment taxes social security,

unemployment insurance , and railroad

retirement received amounted to $86.1

billion, a gain of $9.4 billion (12 .2 percent) .

Receipts from this source were affected by

higher wage and salary payments, increases

in the social security wage base due to the

operation of the automatic adjustment

mechanism and an increase in the net

Federal unemployment tax rate from 0.5

percent to 0.7 percent.

Excise tax collections registered the smallest

gain for any major tax category, rising 0.4

billion (2.5 percent) on collections of 17 .8

billion . The continued phasing out of the

telephone excise tax and lower alcohol and

tobacco tax collections contributed to this

smaller gain .

Estate and gift tax collections of $7 .4 billion

showed the largest rate of increase,

advancing 37 .3 percent ($2 billion) . Much of

the increase was due to a very large rise in

both the number and amount of taxable gifts

made prior to the January 1, 1977 effective

date for gift tax revisions under the Tax

Reform Act of 1976 . The gift tax portion of

this combined tax class amounted to $1 .8

billion, up $1 .3 billion (283 percent).

Pipeline

1 3

At the ten Regional Service Centers,

tax returns are4. Tum-dwe~,g

..M - 0-p-,,

07@

3 . R---i.dbY".1,-

8. R .hnd----PM1 .dbY

Tm-~D~-mb.~,,

COnce a tax return reaches one of ten IRS shown here are automated for faster

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

of processing steps known as "the involved every step of the way . pipeline ." While many parts of the pipeline
14

Gross Internal Revenue Collection s

(Dollars in thousands . For details see table 1 in Appendix. )

Source

Percent

of 1977

Collections

Increase or

Decrease

19763 1977 Amount Percent

Grand total1 100.0 310,822,819 355,139,417 47,316,598

Income taxes, total 68.9 211,320,660 246,805,067 35,484,407

Corporation 16 .8 47,431,879 60,049,804 12,617,925

Indivicual, total 52.1 1163,888,781 $186,755,263 22 .866,482

Withheld by employers 40.4 127,757,804 144,672 .331 169,914,527

Other' 11 .8 36,130,976 42,082,932

Employment taxes, total 24.0 76,694,900 86,076,31 6

Old-age and disabilit y

insurance, total 23 .0 73,346,484 82,257,21 1

Federal insuranc e

contributions 21 .9 69,809,814 78,256,895

Self-employment insurance

contributions 1 .1

Unemployment insurance 0 .5

Railroad retirement 0 .5

Estate and gift taxes 2.1

15 .2

16 .8

26. 6

14~ O

13 .2

5,951,956 16 .5

9,381,416 12. 2

8,910,727 12. 1

8,447,081 12. 1

3,536,670 4 .000,316 463,646 13 . 1

1,625,205 1 .910,302 285,097 17.5

1,723,212 1,908,803 185,591 10.8

5,408,141 7,425,325 2,017,184 37 .3

Excise taxes, total 5.0 17,399,118 17,832,707

Alcohol 1 . 5

Tobacco 0. 7

Other 2.8

GoCOW-1 .1. solWad 1 . a,lclt,do --la -nshernsd 1. 11.

--h! .1 G_hn

~Eshnnated-coe,hohs .1 1d,,,d .J nconne - .IhMIdI ane

not neconeci sepa,awy hom old .,ge S--S. b-IbIty and

hosp tat ns-se, (OASOHI) ta,es on ~;aqs and saithes,

cohemons ol ,cme - 101 athhold It not .-ad

th-raisih, 110, OASHI -as on sati-empioyn,ch, ncwe The

a,o,m of oAsHh is . cowtons sho,n a oased on est,mates

nnace b, the secha.,y ol IN T-athy p--1 to the oh--,

sec 201 (a of the soch, Sectagy Act as annended and ~nct,des

433,589 2 .5

5,399,055 5,406,633 7,578 0. 1

2,514,321 2 .398,501 - -115,820 -4.6

9,485,742 10,027,573 541,831 5 .7

all OASDHI aa.es The ean-tes sm- ha in, I,, classes ot

rd~,,d- -hne Is- 1110 con- by Slon-ng the OASDHI

-es--a h- no coann-ned .,.,a edon.d

'The Conghes-al Beget and 1-ndment Act of 1974 (P L

93-344) sialost,ed , a, t.s,,l m,.,,d (Oclooe, 1 th-gh

sectembe, 30) itsac- .in hsc,i as 1977 Fl, colp-lwooses, 1976 data she 10, re- teghn.ng Woloer 1 1975

lhfogh Seplembe, 30, 197 6

tXl,d,, Pr,,idm ;:,! E

n

F",d :-hng to $33 691 7113

tinclIce, Pca,dah E:ec on d oaraing to S36 W.491 ,

The Tax Dolla r

Where It Came From Fiscal Year 1977 (Gross Collections)

Individual

IncorneTaxes 52 .11,t

Employment

Taxe

Corp:ra2t4io.00n

FrIncome Taxes 16 .8,it

~ ExciseTaxes 5.0 9

Estate and

GittTaxeS 2.1t

j

Net Internal Revenue Collections

(

Including lax rebates) through September 30, 1977

(Dollars in thousands )

Source

Grand total

Corporation income taxe s

Individual income taxe s

Employment taxes, total

Old-age, survivors, disability

and hospital insurance

Railroad retirement

Unemployment insurance

Estate and gift taxe s

Excise taxes

'Does hch mWe nte-I d .b on h.hhda

The Tax Dollar

Where It Came From

Fiscal Year 1977 (Net Collections)

1 5

Net Collections

Percent Of

Collections Refunds' Amount Tota l

358,139,417 36,178,997 321,960,420 100 .0

60,049,804 5,214,540 54,835,264 17 .0

186,755,263 30,142,134 156.613 .129 483

FEmployrn.nt Corporatioit n

l c, .O,~ropz_.-T.-~res 17.0,t

Taxes 26 .60

1 ExciseTaxes 5,49

Estate and Gift Taxes 2.3it

86,076,316 436,189 85,640,127 26 .6

82,257,211 400,140 81 .857,071 25 .4

1,908,803 190 1,908,613 0 .6

1,910,302 35,859 1,874,443 0. 6

7,425,325 98,737 7.326,588 2. 3

17,832J07 287 .397 17,545,310 5.4

:nclividual

ncome Taxes 48 .70
16

Refunds

During Fiscal Year 1977 the internal

Revenue Service paid refunds totaling $36 .5

billion to 67 .9 million taxpayers whose

income tax withholding, estimated tax

payments or credits were shown on their

returns to have exceeded their tax liabilities .

The average refund to individuals was $459 .

For the preceding 12-month period, 67 .6

million refunds totaling $34 .7 billion were

paid . The 1977 data includes 4 .4 million

checks totaling $0 .9 billion for the Earned

income Credit (EIC) .

The table following shows a January to June

comparison for the years 1976 and 1977 of

returns filed and refunds issued .

Returns Received

IRS Service Centers received 133.7 million

tax returns in FY 1977, compared to 127 .7

million during the preceding 12-month

period . Individual and fiduciary returns

accounted for almost two-thirds of al l

return receipts . Nearly 87 .3 million individual

and fiduciary income returns were received

in 1977, an increase of

3 .1 million over the

previous 12-month period .

After declining during 1976, the number of

Form 1040 filers increased this year . The

Service received 56 .5 million Forms 1040

during 1977,a3 .2 percent increase over the

54 .7 million received last year .

The number of Form 1040A filers continues

to grow, More than 29 million individual

taxpayers, 33.9 percent of all individual

filers, used the short Form 1040A in 1977,

compared to nearly 28 million in the

preceding 12-month period, an increase of 4 .6 percent in the number of Forms 1040A

filed .

Returns Filed and Refunds Issued

Individual Income Tax* January-June

(Cumulative 000's, cumulative percentages

)

1976 Ja

n

Returns Filed

Volume 8,082 34,46

0

Percent9 .8 42 .0

Refunds Issued

Volume 2,263 20,56

4

Percent

3 . 5

1977

Returns Filed

Volume 5,417 31,73

2

Percent 6.4 37 . 7

Refunds Issued

Volume 1,780 19,41

8

Percent 2,8

Feb Mar Apr May June

50,800 80,031 81,185 82,096

61 .9 97.5 98.9 100

40,364 56,802 62,614 63,83

7

32.2 63.2 89.0 98.1 10

0

50,123 81,406 83,190 84,12

9

59 .6 96.8 98.9 10

0

39,700 56,447 62,546 63,82

3

30.4 62 .2 88.4 98.0 100

;Ret-sP-5S8dbyNa-alC0 nerCe--n-redi .l..

--ance by Rational D,sb,nanp`7 nte-no,ces only Forms

1040 and I NOA

17

Tax Credits Under 1976 Reform Act

The Tax Reform Act of 1976 continued or

modified some of the credits originally

established by the Tax Reduction Act of

1975, The Earned Income Credit continued

as a "negative income tax" in that it provides

a refundable credit to taxpayers meeting

certain criteria of income and dependents . A refundable credit is one that provides for a

payment to taxpayers it the credit exceeds

income taxes due. A nonrefundable credit

reduces tax liability but does not provide a

payment in excess of tax liability .

The General Tax Credit replaced the former

Personal Exemption Credit ; it is a nonrefundable credit available to taxpayers

based on $35 per exemption or two percent

of taxable income not to exceed $180. The

Child Care Expense Credit was available to

taxpayers for the first time in 1977 ; it

provided a non-refundable credit of 20

percent of employment-related expenses

paid to enable the taxpayer to work it the

taxpayer maintained a household including a

child under age 15 or dependent or spouse

incapable of self-care ,

The data in the following table covers the

Period January1 through September 30 of

each year :

1977 Earned Income Credit N . s ~ il"971 '; , " ,

on lion

Amt $13 Will- $1 .2 billion

General Toy Credit Amt . $9 2 billion

Personal Exemption No 1942

Credit Amt $5 .8 lo,

on Child Care E,rpense No. 2.7

-_11,on

Credit Amt $0 5 billio

n

Number of returns filed, by principal type of return

(Figures in Thousands . For details, see table 7, in Appendix

)

Type of Retur

n

Grand Tota l

Income Tax, Tota l

Individua l

Declaration of estimated tax

Fiduciary

Partnership

Corporation

Estate Tax

Gift Tax

Employment Tax

Exempt Organization

Employee Plans

Alcohol, Tobacco, and Firearm

s

Excise Tax

Supplemental Documents

19761 197

7

127,662 133,685

95,362 98,807

82,577 85,61 1

7,868 8,08

8

1,612 1,663

1,135 1,197

2,170 2,247

242 24

8

309 387

24,841 25,02

3

503 554

525 1,3212

593 55

8

919 91

0

4,369 5,87

7

;R,ce,pts 101 P111W OC100el 1 . 1975 m1V Saplarnb,, 30 .1976 ThIs toal t,g,,e v,des return, j,led to, alenda, years 1975 and 197toolh,ecenad,n FY 1977 .
1 8

Information

Returns

Program

Presidential Election Campaign Fund

A total of 23 .2 million individual income tax

returns had designations for the Presidential

Election Campaign Fund (PECF) in Fiscal

Year 1977 . This was 27 .5 percent of the

returns processed during that period . The

total amount designated in Fiscal Year 1977

was 36.5 million, In the preceding 12-month

period, there were 21 .2 million individual tax

returns (25 .8 percent of returns processed)

with PECF designations totaling $33 .7

million . The cumulative amount credited to

the Presidential Election Campaign Fund

since the check off was initiated in 1972 is

$132 .3 million .

The IRS Information Returns Program (IRP),

begun in 1975, continued to match the

information returns of some individual

taxpayers with their income tax returns to

detect non-filing or underreporting of

income .

The IRP matches all information returns filed

for individuals on magnetic tape and some

of those filed on paper . The Service actively

encourages all organizations having tape

capability or access to computers to file the

information returns on tape . During 1977, the

IRS received almost 470 million information

returns from businesses and organizations

required to report payments of wages,

interest, dividends and other forms of

income: over 245 million were submitted on

magnetic media .

Mathematical Verificatio n

During fiscal 1977, the IRS checked the

mathematics on 85.9 million individual returns . The tax was calculated on 1 .4 million,

manually verified on two million . and computer verified on 82 .5 million .

Computer verification reduced the tax liability

of four million taxpayers totalling $428

million, for an average of $108 per return .

On 4 .6 million returns, taxpayer errors

increased their liability by $629 million,

averaging $137 per return.

The Service, in computer. checking estimated

tax credits on individual returns, found that

taxpayers underclaimed by S232 million and

overclaimed by $463 million .

Results of the fiscal year 1977 computer verification program are tabulated below .

Individual Income Tax Returns Mathematically Verified By Computer

(In Thousands )

Number verified by computer

Number of returns on which mathematical errors

were defected

Percent of returns with mathematical errors

Returns with Increaset

Numbe r

Amount

Average amount (dollars )

Returns with decrease :

Numbe r

Amount

Average amount (dollars)

1976* 1977'

79,510 82,488

7,066 8,548

8 .9 10 .4

3,177 4,575

501,369 628,84 3

157 .79 137.46

3,889 3,973

315,816 428,31 0

81 .21 107.79

' 1977 d -

covers In. fiscal year . DO 1976-SaPI 1977. 1976

data -Thn, preceding 12 month period. Oct . 197~Sept .

1976 . Average dollar amounts are rounded

Information

Returns

on Magnetic

Media

During 1977 the IRS received almost 470

million information returns from businesses

and organizations required to report

payments of wages, interest, and dividends .

Over 245 million of these documents were

submitted on magnetic media in 1977 as a

result of the Service's continuing program to

encourage all organizations that have

computer capability or computer access to

report on magnetic media .

The table below shows the number of

organizations shifting to magnetic media

filing during the past decade .

Information Returns

Reported on Magnetic Medi a

Tax Documents Reporting

Year (thousands) Entitie s

1966 26,248 591

1967 36,492 1,04 8

1968 47,686 2,42 6

1969 58,951 2,963

1970 68,300 4,637

1971 91 .449 8,504

1972 115,008 12,758

1973 144,533 13,128

185,554 21,862

'1975 216,83gr 32,486'

245,277 35,330

"I'l.vued Dal.

'C,lend, I- data

Dal, to, 1973 and p-, -- 11, 6 month period January

through J . ..

Delinquent During 1977 the Service emphasized the

Accounts Delinquency Prevention Program (DPP) ,

designed to identify potentially delinquent

and Compliance taxpayers and help review and correct their

problems . A significant development in the

failure to file activity was the mailing of 1 .2

million notices to all individuals who had not

filed 1040 Forms.

1 9

Despite a budget reduction of over 800 staff

years, improved programming and staff

utilization permitted a nominal increase in the

number of outstanding delinquent accounts

assigned to field operations . Compared to

1976 . the cases assigned to district offices

in 1977 increased by 16 percent while the

total dollar value of these accounts

increased by seven percent .

Program Accomplishments

The Collection activity closed over 2 .6 million

delinquent accounts during FY 1977.

Included were some 328,000 delinquent

notices received by taxpayers who

contacted IRS field offices to resolve the

matter when notified . IRS employees had to

initiate contact on the remaining 23 million

delinquent accounts .

Suellen P. Hilimpy is designated Director, Program

Manning and Review Staff, by Commissioner Kunz. The

number of women in high level Positions confinued to

increase during 1977 and the overall employment of

worneri in the IRS increased by 7 .52 percent during the

same period .
20

Nearly 3.1 billion in delinquent taxes was

collected during the year, a decrease of

about 700 million over a comparable period

in 1976 . This was due to a budget reduction

in staff, emphasis on delinquency prevention

and investigations for failure to file returns .

District personnel disposed of over 2.4

million investigations for failure to file returns,

a 28 percent increase over a comparable

1976 period . Approximately 689,000

delinquent returns were secured in 1977 .

involving nearly $501 million in additional

taxes .

During 1977, 16 percent of delinquent

individual taxpayers were repeaters, while

the rate for business taxpayers was 39

percent . Because of the high business

repeater rate, the Service stresses bringing

business repeaters into voluntary

compliance, through the Trust Fund

Compliance Program . At the beginning of

1977, there were nearly 275,000 taxpayers

with delinquent trust fund accounts totalling

over $635 million . Of these accounts, 2,500

had a balance of $25,000 or more . At the

end of 1977 the number of taxpayers with

delinquent trust fund accounts was some

325,000, with an outstanding balance of

approximately $667 million, and the number

of delinquent trust fund accounts over

$25,000 was 2,400.

Gross tax, penalties and interest resulting from direct enforcement

(in thousands of dollars)

ftern

Additional tax, penalties, and Interest assessed,

total

From examination of tax returns, total

Income tax, tota l

Corporation

Individual and fiduciar y

Estate and gift tax

Employment tax (including withheld income tax)

Excise tax

From delinquent returns secured, total

By district collection divisions

By district audit divisions

Delinquent taxes collected, total

N/A: Not ava~ble.

1976 1 9T7

4,861,934 4,930," 7

4,307 .196 4,084,13 5

3,588,071 3,390,508

2,148,049 1,982,74 8

1,440,022 1,407,76 0

429,112 463,431

207,825 173,150

82,188 57,047

554,738 846,31 2

554,738 500,971

N/A 345,341

3,757,446 3,068,673

Chapter 3

Insuring Compliance
2

2

Audit of

Returns

The IRS audits tax returns in order to

encourage voluntary compliance with the tax

laws, While audit activity is the primary

method that the IRS uses to encourage

voluntary compliance, every return is subject

to scrutiny by IRS employees and

computers . When a return is received in one

of the 10 IRS service centers, it is first

checked manually for completeness and

accuracy and for such obvious errors as the

claiming of a partial exemption or duplicate

deductions . Then the service center's

computers check the accuracy of the

taxpayer's arithmetic and pick up other

errors which may have escaped manual

defection, such as the failure to reduce

medical deductions by three percent of

adjusted gross income.

Returns Selection

The primary method used by the IRS in

selecting returns for audits is a computer

program of mathematical formulas-the

Discriminant Function System (DIF)-that

measures the probability of tax error in each

return . Returns identified by the DIF system

as having the highest error potential are

selected for audit . Since this system was

introduced in 1969, the IRS has reduced the

number of taxpayers contacted whose audits

would result in no tax change for all taxes

from a peak of 43 percent in 1968 to 24

percent in 1977 . New DIF formulas for both

individual and partnership returns were

developed in 1977, and will be used for

returns filed in 19. 78 .

Returns also may be chosen for audit under

the Taxpayer Compliance Measurement

Program JCMP), a computerized system

that makes a random selection of returns

within income classes for research

purposes . These audits also are used to

update DIF formulas with current taxpayer

filing and reporting characteristics . Audits

conducted under this program are more

intensive in order to develop information

required .

Computer selection of returns is

complemented by manual selection . For

example . it the IRS audits a partnership

return, the returns of the partners also may

be audited . Other returns may be manually

selected based on information documents,

such as Forms W-2 and 1099, or other

additional information . The IRS also screens

returns with adjusted gross income above

certain amounts and some returns of

taxpayers who submit claims for refund or

credit after filing returns .

Results of Audit Activit

y

The IRS audited 2,345,1 10 tax returns of all

types in 1977 . Of that total, 150,730 were

examined in service centers . compared to

142,667 last year, The remainder were

examined in district offices by revenue

agents and tax auditors .

Examinations conducted by revenue agents

at the taxpayer's place of business or

residence totaled 677,192 returns, a

decrease of 37,148 returns or five percent

from last year .

There were 1,517,188 returns examined by

tax auditors under office audit procedures, a

decrease of 91,119 returns or six percent

from last year . Audit coverage of income,

estate and gift tax returns was 2.46 percent

compared to2.59 percent in 1976 .

The Service's examination program resulted

in approximately $5 .1 billion recommended

additional tax and penalties, making this the

fifth straight year that recommendations have

exceeded $5 billion .

The following table shows returns examined

by Audit Divisions in 1976 and 1977 .

Number of Returns Examined (Audit Divisions)

Fiscal years 1976-197

7

Type of Return

Revenue Agents Grand Tota l

Income Tax Total

Individua l

Fiduciar

y

Corporation

Estate and Gift Ta

x

Excise& Employmen

t

Tax Auditors Grand Tota l

Income Tax Total

Individua l

Fiduciary

Corporation

Estate and Gift Ta

x

Excise

& Employmen

t

Service Center Grand Tota

f

Income Tax-Individua l

Excise Tax

Total Grand Total

Income Tax Total

Individua l

Fiduciar

y

Corporation

Estate and Gift Ta

x

Excise

& Employment

Revised Data

1976 1

714,340

498,45

6

320,750

17,078

160,628

48 .344

167,540

1,608,306

1,545,139

1,544,359

100

680

10.846

52.32 1

142,667

136,645

6,02

2

2,465,313

2,180,240

2 .001,754

17,178

161,308

59,190

225,883

23

1977

677,192

467,000

288,810

10,740

167,45

0

44,567

165 .625

1,517,188

1,453,626

1,453,24

6

141

239

9,237

54,325

150,730

150,730

2,345,110

2,071,356

1 .892,786

10,881

167,68

9

53,804

219,950
24

25

During 1977 assessments totaled $4 .1

billion, including $3 .4 billion in assessed tax

and penalties and $650 million in interest. In

1976, assessments were $4 .3 billion, of

which $3.6 billion represented tax and

penalties and $710 million, interest ,

The table on following page shows the

recommended additional tax and penalties

for the years 1976 and 1977.

Examiners are required to determine a

taxpayer's correct tax liability, which means

that examiners observe that taxoayers

neither overstate nor understate their liability .

In 1977, Service examinations disclosed

overassments on 122,003 returns,

accounting for refunds of $281 million,

Service Center Program

The IRS service center review program,

begun in 1972, generally is limited to the

verification or resolution of issues that can

be handled satisfactorily by service center

personnel through correspondence with the

taxpayer, More than 913,000 returns were

checked in service centers in 1977,a 51

percent decrease from 1976 .

The decrease occurred primarily in the

Unallowable Items Program as a result of the

Tax Reform Act of 1976 . Certain items

previously included in this program, such as

medical expenses not reduced by the one

and three percent limitations, are now

considered mathematical or clerical errors

and are corrected during initial returns

processing .

As a result, 354,916 returns were corrected

by audit activity in 1977, compared to

approximately 1,474,000 in 1976 .

With service centers conducting

correspondence examinations of returns

selected under district office criteria ; 150,730

returns were examined during 1977, an

increase of seven percent over 142,667

examined in 1976.

Computer Assisted Audits

The Service has an ongoing program to use

computers in audits of tax data in automated

accounting systems . Both generalized

computer programs and specifically

developed programs are used to retrieve

and anlayze data essential to an

examination . Taxpayers and the IRS save

time and expense since computer assisted

audits are done in a fraction of the time

required to do the same job manually.

Over 10,000 applications of these computer

audit techniques were performed in 1977, an

increase of 2,000 over 1976, The audits are

done by computer audit specialists,

experienced revenue agents who have

received intensive training in computer systems, hardware, programming languages,

and audit techniques.

Coordinated Examination Program

All large case taxpayers, except financial

institutions and utilities, whose gross assets

exceed $250 million are included in the

Coordinated Examination Program . Financial

institutions and utilities are included in the

program if gross assets exceed $1 billion .

Large case tax audits involve complex

accounting operations and the team audit

approach allows the IRS to assemble its

experienced revenue agents, economists,

computer specialists, engineer agents,

international and excise tax examiners, and

employee plans specialists to examine these

intricate returns.

At the end of FY 1977, there were 1,286

large cases in this program, which averaged 2 .8 open years per case . This is the fifth

consecutive year the average open years in

the large case program has been less than 3.0 per case.

During FY 1977, the IRS continued its

practice of conducting industry-wide audits

of major companies in a given industry . Nine

industries are currently being audited by this

approach, and two more are in the planning

stage.

Recommended Additional Tax and Penalties (Audit Divisions) (in millions of dollars )

Fiscal Years 1976-197

7

Type of Returns

Revenue Agents Grand Total

Income Tax Total

Individua l

Fiduciary

Corporation

Estate and Gift Tax

Excise

& EmPloymen

t

Tax Auditors Grand Total

Income Tax Tota l

Individual

Fiduciary

Corporation

Estate and Gift Ta

x

Excise& Employment

Service Center Grand Tota l

Income Tax-Individual

Excise Tax

Total Grand Tota l

Income Tax Tota l

Individual

Fiduciary

Corporation

Estate and Gift Ta

x

Excise

& Employment

1976

1

4,538. 5

3,710 .7

953 .3

35 .5

2,721 . 9

603,1

224 . 7

418 .8

384 .0

383 .1. 1.8

15 .0

19 .8

222. 7

222 . 1 .6

5,180. 0

4,316. 8

1,558 .5

35 .6

2 :722. 7

618. 1

245 . 1

R-- Da,.

1977

4,453 .3

3,579.0 1 .066 .3

47A

2 .465.3

657.3

217.0

472 .4

441.3

441 . 0. 1 .2

12. 5

18. 6

131 .5

131 .5

5,057.2

4,151 .8

1,638. 8

47. 5

2 .465 .5

669 .8

235 .6
26

27

f

Special Enrollment Examination

The Special Enrollment Examination

enables individuals who are not attorneys

or Certified Public Accountants to

demonstrate their competence in tax

matters Upon successful completion of the

examination, individuals are "enrolled" to

practice before the IRS .

In 1977 the examination was redesigned

and patterned after CPA examinations . The

present test is divided into four parts and

candidates are required to pass each part .

Candidates can retain credit for any part

passed and need only lake those parts

failed . Examination questions focus on the

tasks which enrolled agents must perform to

file complete forms and returns, and to

represent taxpayers before the Service .

Candidates filing applications for the

examination have increased from 824 in

1967 to 5,090 in 1977.

Tax Shelter Program

In 1974, the IRS established a nationwide

tax shelter program to conduct examinations

of possible tax shelter abuses by investors in

the oil and gas industry . The program was

later expanded to include real estate . farm

operations, motion pictures, master

recordings and coal Shelters, Most returns

examined in this program are those of

partnerships as they are commonly used by

taxpayers as the vehicle to obtain significant

tax benefits without the risk of personal

liability .

Joint Committee Review

The Internal Revenue Code requires that all

income, estate and gift tax, private

foundation, and pension plan tax refunds

and credits in excess of $200,000 be

reported to the Joint Committee on internal

Revenue Taxation . During 1977, 997 cases

involving overassessments of $984 million

were reported to the Joint Committee. as

compared with 1 .506 cases and $1 billion in

1976,

Audit Information Management

System

In 1977, the Service successfully

implemented the Audit Information

Management System (AIMS) nationwide . Th

e

new system is an expansion of the existing

Integrated Data Retrieval System (IDRS)

currently located in IRS service centers .

AIMS allows Service personnel to promptly

locate any return in the Audit Division, This

feature permits more rapid responses to

taxpayer inquiries and faster assessment

and refund action resulting in improved

taxpayer relations . The system also provides

for automated control and verificalion of

assessments from the point of origin in the

district office and service center .

The Appeals Process

The Internal Revenue Service encourages

the resolution of tax disputes through an

administrative appeals system rather than

litigation . Taxpayers who disagree with a

proposed change to their tax liability are

entitled to a prompt, independent review of

their cases . The appeals system is designed

to minimize inconvenience, expense, and

delay to the taxpayer in disposing of

contested tax cases .

Within the system are two levels of appeal :

the district conference staff in the audit

division of the district director's office, and

the appellate division in the regional

commissioner's office. Each level of appeal

is independent of the other, and each has

different authority and jurisdiction,

Opportunities for such appeals are offered

at 58 district offices and 40 regional branch

offices throughout the country . Conferences

also are arranged, as needed, at other IRS

locations and at times convenient for

taxpayers,

Proceedings are informal in both offices .

Taxpayers may represent themselves or be

represented by an attorney, a Certified

Public Accountant, or other advisor enrolled

to practice before the IRS . If the disputed

tax liability for each taxable year involved in

the dispute, is $2,500 or less, the taxpayer

may obtain a district conference and a

subsequent regional conference without

filing a written protest . For larger amounts a

written protest is required . If agreement

cannot be reached during the district

conference the taxpayer is advised of further

appeal rights, and may request a regional

appellate office conference ,

In most cases, the taxpayers and the district

conferee, or regional appeals officer, reach

mutually acceptable agreements .

Consequently, few cases go to trial. In the

past 10 years, 97 percent of all disputed

cases were closed without trial . In 1977, the

appeals function disposed of 56,805 cases

by agreement : the Tax Court tried 1,402

cases; andthe United States District Courts

and Court of Claims tried 403 cases . Thus,

in disputed tax matters, the administrative

appeals system serves the taxpayer well.

District Conferenc

e

District conference staffs consider disputes

involving factual questions regardless of

size . They also consider whether proposed

actions by a district director's office reflect

the correct interpretation of the Internal

Revenue Code, as stated . and as clarified

by the courts and by IRS Regulations and

Revenue Rulings, Since April 1, 1974, district

conference staffs have had the authority to

settle cases where the amount of tax in

dispute was $2,500 or less, by considering

the hazards of litigation,

Since receiving this settlement authority, the

percentage of agreed cases closed by

district conference staffs has significantly

increased.

District conference staffs reached agreement

with the taxpayer in about 70.5 percent of

the cases they considered in 1977.

Appellate Divisio

n

Cases considered by the Appellate Division

fall into two broad categories : Nondocketed

cases in which the taxpayer is protesting a

proposed action by the district director

involving additional taxes, a refund

disallowance, or a rejection of an offer in

compromise . These cases made up about 55 percent of appellate's workload in 1977,

The second category of cases are known as

docketed, and involve cases where

taxpayers have filed a petition for a hearing

before the United States Tax Court .

In 1977, 70 percent of nondocketed cases

and 73 percent of docketed cases were

closed by the Appellate Division by

agreement with the taxpayer .

The

U.S. Tax Court in session for a small case hearing . Under a simplified Procedure, Tax Court proceedings permit

informal hearings where taxpayers can present theiT cases before a spet ;4 trial judge

A knowledge of counrcd, Pwrhcane effideindiss pisuledt traexq udioreecsi, rsint ceexcthee object ive is to provide an inexpen sive forum for the taxpayer. A small case

,a

ad $1 .500 in any tax year.
28

Other Appeal Option

s

If a tax dispute cannot be resolved at either

the district or the regional level, the taxpayer

is advised of additional appeal rights . in

most cases, the taxpayer may file an appeal

with the United States Tax Court .

It the disputed tax does not exceed $1,500

in any tax year . a simplified procedure is

available under the Tax Court's small case

rules . Small case Tax Court proceedings

permit informal hearings where taxpayers

may present their cases before a special

trial judge . Since a knowledge of courtroom

proceedings is not required . an inexpensive

forum for the taxpayer is provided. However,

under small case procedures, there is no

provision in the law for an appeal of the Tax

Court's decision

If a taxpayer chooses to bypass the Tax

Court, the tax deficiency may be paid and a

claim for refund filed within two years from

the date of payment . It the claim is denied

by the IRS, or no action is taken by the IRS

on the claim within six months, the taxpayer

may file suit for a refund in either a United

States District Court or the Court of Claims . A taxpayer may appeal an adverse decision

of,the Tax Court or District Court to the

United States Circuit Court of Appeals

having jurisdiction . Adverse decisions of the

Court of Claims or the Circuit Court of

Appeals may be appealed to the United

States Supreme Court, although the

Supreme Court does not accept all such

appeals.

Tax Fraud Investigations

The Intelligence Division is responsible for

the enforcement of the criminal provisions of

the tax laws, investigating evidence of tax

evasion or tax fraud and recommending

prosecution .

If a pattern of noncompliance is detected .

special projects may be carried out to

determine the extent of the noncompliance

in a given geographical area or occupational

field .

During 1977, the intelligence Division

completed 8,391 investigations and

recommended prosecution of 3,408

taxpayers . Grand juries indicted or courts

filed information on 1,636 taxpayers .

Prosecution was successfully completed in

1,476 cases. In 1,063 cases taxpayers

entered guilty pleas, 166 pleaded nolo

contenders, and in 247 cases, taxpayers

were convicted after trial . Acquittals and

dismissals totaled 55 and 110, respectively .

Of the 1,532 taxpayers sentenced during

1977, 685 or 44.7 percent received jail

sentences, compared with 41 .5 percent last

-

year .

The following table covers the results of

criminal action in tax fraud cases from 1973

to 1977 .

Results of Criminal Action in Tax Fraud Cases

1973-197

7

Action

Plea of Guilty

nolo contendere

Number of Defendant

s

1973 1974

914 1,062

Convicted after trial 19

0

Acquitted

55

Nol-prossed or dismissed 11

2

Total Disposals

1975 1976 1977

1,046 977 1,229

191 173 216 247

97 83 77 55

115 168 71 110

1,271 1,466

Indictments& Informations 1,186 1,441

1,470 1,341 1,641

1,495 1,331 1,636

29

Organized Crime and Strike Force

Activities

The IRS cooperates in the Federal

government's fight against organized crime by participating in the Federal Organized

Crime and Strike Forces Program . Located

in 12 major cities, strike force units are

headed by attorneys from the Justice

Department . The objective of this program is

to coordinate the combined forces of

Federal law enforcement agencies against

the criminal element in our society, The IRS

is responsible for ensuring that the income

from illegal activities is correctly reported

and taxed and for detecting criminal

violations of the tax laws, During 1977, the

IRS contributed 485 staff years of direct

investigative and examination time to the

strike force effort . A total of 135 organized crime members and

their associates were convicted or pleaded

guilly .to tax charges during I

he year and

678 prosecution cases were pending when

the year ended .

Since the inception of the organized crime

program in 1966, 834 organized crime

members and associates have been

convicted or have pleaded guilty 10 various tax charges .

Tax Investigations of High Level

Narcotics Leaders and Financier

s

As part of its Special Enforcement Program,

the Service continued to identity and

investigate significant tax violations by highlevel narcotic financiers and traffickers .

During 1977 the IRS completed 220 criminal

tax investigations, obtained 72 indictments and achieved 62 convictions of financiers

and traffickers .

Disclosure to Third Parties

(Number of disclosures on individual taxpayers

)

Recipient

States

U .S. Attorneys

Department of Justice

Restricting Access to Tax Returns

Legislative actions concerning disclosure

were significant during Fiscal Year 1977,

with the Tax Reform Act of 1976 amending Code Section 6103, effective January 1,

1977, to provide, generally, that tax returns

and tax return information are to be

confidential and not subject to disclosure

except as authorized, Increased criminal

penalties and new civil damage provisions

for unauthorized disclosures also were

included in the Act . The legislation was

strongly supported by the IRS because it

reflected many Treasury legislative

recommendations, and codified most

existing disclosure regulatory and policy practices .

The Disclosure Operations Division provides

Program guidance to Disclosure Officers in

all IRS field offices . To implement the

provisions of the Privacy and Freedom of

Information (FOI) Acts, and IRC 6103

amendments .-the IRS decentralized some

administrative responsibilities to the field for

disclosure, privacy, and FOI . Disclosure

Officer positions were established in IRS

regions, districts, service centers, the Office

of International Operations, the Assistant

Commissioner (Inspection), and the IRS Data

Center, Field officials now act on certain

requests for testimony of Service employees,

make initial determinations concerning FOI

requests and process requests for information under II

he Privacy Act . I

The following table shows the number of

-

individual tax return disclosures made in

compliance wilh Federal law. (See page 57 for legal aspects of IRS disclosure

procedures .)

IFY 1974 FY 1975 FY 197

6

58,911,922 62,980,779 65,855,434

18,062 17,678 22,711

10,446 11,485 950

5

Social Security Administration 6,633 5.835 5, 1484
Chapter 4

Data Services

Technical Activities
32

Data Services A new office of Assistant Commissioner

(Data Services) was created and operating

effective January 2, 1977, after data

processing responsibilities overlapping

functional lines had made it increasingly

difficult to: (1) develop integrated long-range

goals: (2) assure a well balanced ADP

program: and (3) control the expenditure of

resources .

The Assistant Commissioner (Data Services)

organization includes the Service and

Design Division, the Systems Programming

Division, the Systems Analysis Division, the

National Computer Center, and the Data

Center . This reorganization affects only the

National Office since there are no

counterpart changes in the field .

The Assistant Commissioner (Data Services)

is responsible for the development,

implementation and evaluation of computer

systems, programs and hardware

requ irements .

Service and Design Division serves as the

principal contact for all IRS data processing

support services . in addition to overall

responsibility for the maintenance of existing

data processing systems, it participates in

developing or revising systems to meet

customer need s

Systems Programming Division directs and

coordinates the development and operation

of all computer processing programs except

those of the Data Center . It also develops

and maintains computer software support

and standards

Systems Analysis Division is responsible for

the overall evaluation of systems, hardware

and operational effectiveness of the IRS data

processing support program including

systems acceptability testi% control of the

request for proposal process and hardware

vendor selection ; assessment of program

effectiveness, and oversight of Data Services

security, privacy and disclosure.

The National Computer Center plans, directs

and coordinates master file operations of the

tax administration systems including

establishing, maintaining and updating

individual, business, employee plans and

exempt organization master files .

The Data Center coordinates the analysis,

design, development, maintenance . and

operation of automated data systems and

nonmaster file data processing .

Tax Rulings and

Technical Advice

The Service's tax ruling program consists of

letter rulings, technical advice and published

Revenue Rulings .

A letter ruling is a written statement issued to

a taxpayer by the National Office interpreting

and applying the tax laws to a specific set of

facts . Such a ruling provides guidance

through advice concerning .the tax effects of

a proposed transaction. Letter rulings are

not precedents and may not be ielied upon

by other taxpayers .

Technical advice is guidance as to the

proper application of the tax laws to a

specific set of facts furnished by the

National Office at the request of a district

office in connection with the audit of a

laxpayer*s return or claim for refund or

credit . Frequently, the district director's

request is made in response to the

suggestion of the taxpayer that technical

advice be sought .

A Revenue Ruling is an interpretation of the

tax laws issued by the National Office and

published in the Internal Revenue Bulletin for

the information and guidance of taxpayers,

practitioners, and IRS personnel .

Internal

Revenue

Bulletin

The weekly Internal Revenue Bulletin is the

authoritative Publication of the Commissioner

for announcing official rulings and

procedures of the Service and for publishing

Treasury Decisions . Executive Orders, tax

conventions, legislaton, court decisions, and

other items of general interest. Bulletin

contents of a permanent nature are

consolidated semi-annually into Cumulative

Bulletins . Copies Of the weekly and semiannual issues are distributed within the

Service and are made available to the public

by the Superintendent of Documents, U,S.

Government Printing Office Washington. D .C . 20402,.on a single co p'y or subscription basis .

During 1977 the Bulletin included 545

Revenue Rulings. 48 Revenue Procedures,

15 Public Laws relating to Internal Revenue

matters and 18 committee reports, 72

Treasury Decisions containing new or

amended regulations, 21 Delegation Orders,

six Treasury Department Orders . 14 Notices of Suspension and Disbarment from Practice

before the Service, .250 Announcements of

general interest and six court decisions.

The Bulletin Index-Digest System, revised as

of December 31, 1974, provides a rapid

means of researching material published in

the internal Revenue Bulletin after 1952 . The

following table shows a breakout of the

types of Revenue Rulings and Revenue

Procedures published in 1977 .

Revenue Rulings and Revenue

Procedures Published in 1977

Type

Administrative

Employment Taxes

Estate and Gift Taxe s

Excise Taxe s

Exempt Organizations

Income Taxes

Employee Plan s

Tax Convention s

Tow

Numbe r

1 4

1 8

6 1

65

83

32 7

1 5

1 0

593

33

Public Disclosure of Ruling s

The Tax Reform Act of 1976 Provided that

IRS rulings and technical advice generally

will be open to public inspection after the

deletion of the taxpayer's identity, trade

secrets, and confidential commercial and

financial information .

Rulings and technical advice requested after

October 31, 1976, generally are made

available within 90 days after they are issued

to taxpayers . Over 100,000 of them issued

before November 1, 1976, will be made

available to the Public over the next two

years .

11
Chapter 5

Employee Plans and

Exempt Organizations
I 3

6

Employee

Plans and

Exempt

Organizations

The Office of Employee Plans and Exempt

organizations (EP/EO) administers the

regulatory responsibilities of the Service for

employee benefit plans and tax exempt

organizations, At the National Office, the

functions are Employee Plans, Exempt

Organizations, and Actuarial Divisions . EP/

EO field staffs are located primarily in seven

regional offices and 19 key districts, with

other local service also provided.

The Employee Plans activity administers the

Employee Retirement Income Security Act of

1974 (ERISA) with major emphasis an

developing regulations and procedures

urgently needed by taxpayers.

The IRS continues to coordinate

implementation of ERISA with the

Department of Labor (DOL) and the Pension

Benefit Guaranty Corporation (PBGC) by

issuing compatible regulations, procedures

and rulings, and by reducing duplicate

reporting by taxpayers. For example, starting

with the 1977 annual return/report (Form

5500 series), plan sponsors and

administrators will file only with the IRS .

To reduce taxpayer expense and burden in

complying with ERISA, four Model Plans

were developed for use by corporate

employers along with a new procedure

permitting sponsors to obtain approval of

their field prototype plans. A new, simpler

Short Form Application for Determination for

Employee Benefit Plan . Form 5307, also was

introduced .

During 1977, 24 regulations . 10 revenue

rulings and procedures, 11 delegation

orders, eight forms, and 23 news releases,

as well as 4,128 National Office opinion

letters on Master and prototype plans were

issued .

In 1977 the Service devoted an average of

841 field professional positions to carrying

out employee plans responsibility. Advance

determination letters were issued on the

qualification of pension, profit-sharing and

other employee benefit plans. Examinations

were conducted to determine the

qualification of plans in operation and to

verity the appropriateness of plan

contribution deductions. During FY 1977,

158,473 determination letters were issued on

corporate and self-employed plans, an

increase of 345 percent from the 12-month

period prior to October 1, 1976 ,

As for prohibited transactions, five final and

two proposed class exemptions, three

regulations . two delegation orders and three

news releases were issued and 314

individual exemption applications were

processed to disposition .

The Exempt Organizations activity

determines the qualifications of organizations

seeking tax-exempt and private foundation

status, and examines returns to ensure

compliance with the law .

During 1977, eight regulations, 76 revenue

rulings and revenue procedures, 278

technical. advice memoranda, four

delegation orders, 21 announcements, 24

forms, form letters and applications, eight

news releases, six publications and 10

Exempt Organization and Private Foundation

Handbook chapters were issued or revised,

In 1977, the Service devoted an average of

465 field Professional positions to the

examination of 9,803 exempt organization returns . The Service received 50,649

applications and reapplications from

organizations seeking a determination of taxexempt status or seeking a determination of

the effect of organizational or operational

changes on their status, and issued 47,067

determination and ruling letters, 'and 329 - revocations .

Filing requirements for certain exempt

organizations were changed from those with

gross receipts in excess Of $5,000 to those

with gross receipts in excess of $10,000 . As

a result, approximately 36,000 exempt

organizations will not have to file an annual information return. 3

7

The feasibility test conducted at the

Cincinnati Service Center in 1976

concerning decentralizing the processing of

Exempt Organization (EO) returns was

successful. During 1977, the Andover and

Fresno Service Centers started processing

EO returns and related documents .

Previously, all return filing and processing

was done at the Philadelphia Service Center.

The first Exempt Organization Taxpayer

Compliance Measurement Program (TCMP)

covering the examination of private

foundations, public charities and social

welfare organizations was completed

December 31, 1976 . Data from this survey

will be used to select returns for

examination .

The Actuarial Division provides the basic

principles and rules for uniform interpretation

and application of [he Federal tax laws

involving actuarial matters .

in 19~7 the Service devoted an average of

17 professional positions to carrying out

actuarial responsibilities . The Actuarial

Division participated in public hearings on

proposed regulations and serviced taxpayer

requests for rulings, including requests for

waiver of the funding standard account . I
Chapter 6

International Program s

I
4

0

Tax

Administration

Abroad

The Service maintains a system of

permanent foreign posts . Revenue Service

Representatives (RSRs) at these stations are

involved in compliance and taxpayer

assistance activities and maintain

cooperative contacts with foreign tax

agencies . IRS foreign operations are the

responsibility of the Office of International

operations (010) .

Since 010 established its first office in Paris

in 1948, the number of foreign posts staffed

by RSRs has increased to 14 . At present,

posts in Bonn, London, Paris, and Rome

cover Western Europe, and North Africa .

Those in Mexico City, Caracas, and Sao

Paulo are responsible for Mexico, Central

America, and South America, while Canada

is serviced from Ottawa . Offices in Tokyo,

Manila, Kuala Lumpur, and Canberra

administer 010 activities in Japan, Southeast

Asia, Australia, and New Zealand . A post in

Tehran covers the Middle East, and the one

in Johannesburg services Africa south of the

Sahara .

IRS Commissioner Jerome Kuhl (left) compliments

LeroyA. Quinn . U .S Virgin Islancris Commissioner of

Finance . foll-ng the signing of a mutual agreement

procedure to resolve cases of double taxation involving

me

U.S, Virgin Islands I RS foreign posts provide a vital link with

more than two million Americans living

abroad . In 1977, the RSRs continued to

maintain personal contacts with foreign tax

authorities, foreign government officials, the U .S . Department of State and other U .S.

agencies, as well as American communities

abroad, The RSRs also act as liaison with

foreign competent authorities in tax treaty

matters when called upon to represent the U .S, Competent Authority .

The Tax Reform Act of 1976 and the Tax

Reduction and Simplificatun Act of 1977

included important changes affecting

overseas taxpayers. The 1977 filing period

marked the 24th consecutive year that

overseas taxpayers received tax assistance

through the Overseas Taxpayer Service

Program, with over 148 .000 taxpayers

assisted-an increase of approximately 20

percent over 1976 . Twenty-three assistors

were detailed abroad during the year .

providing assistance in 131 cities in 76

foreign countries .

in 1977 Commissioner Kurtz met with the

Canadian Minister of National Revenue,

Monique Begin, to formalize a working

arrangement for simultaneous taxpayer

examinations. Under the tax treaty, the

United States and Canada are exchanging

tax information on related

U .S . and Canadian

companies that has been developed in

examinations . The treaty also provides for

confidentiality of taxpayer information

exchanged between the two countries .

The Service entered into tax administration

agreements with American Samoa. Guam

and theU .S. Virgin Islands, allowing the

Service to provide taxpayer return

information and to develop programs to

improve tax administration, including, in the

Virgin Islands, procedures to resolve cases

of double taxation . 4 1

TDhreecHt alrvaror dintemaho

nf) a1sTaTxedrce

s on

nr .ts

rr) paannd,c,Mpras .niSsarreaphreWenStai Ig 18 clul 1,,e, received three days

Ihe -g I thro

u

S

The 1-977 Harvard group n,~E

:0707

-

ax Administration Advisory ervices (TAAS) w,lh.TAAS er, Harvard Director of raiFgrhaln)g(eRm$eTntAsAwSitohff International Tax Training (sealed ithialISRISOrTihe program are Bilf Lund (left standing) and Dr . Chester R . McNutt (right seated )

Compliance Overseas .

The CIO's audit activity takes place primarily

within the United States, This activity focuses

on securing Compliance with Federal tax

laws from resident and visiting aliens, and

foreign corporations conducting business in

the United States, Personnel of the 010, at National Office, also examine thousands of

tax returns filed by Americans living abroad .

The more complex tax return examinations

continue to be conducted at the foreign

country site of origin, and during 1977 the

number of these audits increased .

Tax Treaties an

d

the Competent Authority

Tax treaties with other countries are

designed to eliminate double taxation,

remove tax barriers to trade and investment,

and help curb tax avoidance . The United

States now has income tax treaties with 39 countries and estate tax treaties with 13 countries. A new income tax treaty with the

United Kingdom was signed in December

1975 It will replace the current one when

ratified by both the

U .S . Senate and the

British House Of Commons .

The Assistant Co'mmissioner (Compliance) is the designated U .S, Competent Authority under our syciern of tax treaties ,

In 1977 meetings were held with tax officials

from several treaty countries for the purpose of improving the administration of the treaties

involved. These conferences improved

working arrangements for more effective

exchanges of information and for resolution

of recurring problems that arise from conflict of U.S . and foreign tax laws .
42

Technical

Assistance

to Foreign

Countries

Since 1963 the Service has provided

reimbursable training, technical and

managerial advisory services to requesting

foreign governments in cooperation with the

Department of State and the Agency for

International Development, The program

objective is to assist friendly developing

countries to modernize their tax

administrations ,

During 1977 the Service extended long-term

advisory assistance to El Salvador, Liberia,

Trinidad and Tobago, and Uruguay . Shortterm assistance was provided to the UN

Trust Territory of the Pacific Islands . An audit

instructor team taught courses in Liberia and

Sierra Leone,

General tax administration surveys in the UN

Trust Territory of the Pacific Islands, and the

Northern Mariana Islands were completed .

Specialized surveys were conducted for

Cyprus in ADP applications, for Ecuador on

collection of delinquent accounts, and for

Egypt as a follow-up to a major report in

1975 . New projects are under way in Sierra

Leone and the Caribbean as well as the

expansion of the Liberia project.

In 1977, 330 foreign tax officials from 60

countries visited the Service to participate in

study-observation programs . Over 4,600

officials from 124 countries have come to the

IRS for such assistance since 1963.

Among the special visitor training projects

were a seven-week Middle Management

Seminar in Tax Administration for 11 tax

officials from Ethiopia, Indonesia, Japan, and

Nigeria and a nine-week Comparative Tax

Administration Seminar for six Korean tax

officials. Twenty-three Harvard International

Tax Program participants and 25 students

from the International Monetary Fund Public

Finance Course were briefed by the Service .

The Service continued support of the InterAmerican Center of Tax Administrators

(CIAT), the 26-country-member hemispheric

organization for tax administration

improvement . The Commissioner's

presentation on U.S . tax simplificatio n

was one of two IRS papers presented to

CIAT's Eleventh General Assembly in Caracas,

Venezuela, in May 1977. The Director, Tax

Administration Advisory Services Division ,

was made a member of CIAT's Executive

Council . The IRS advised CIAT on a new

format for Technical Conferences, At CAT's

request, six papers were presented to

related Technical Conferences on Taxation

of Multinationals and the Exchange of

information under Tax Treaties by

representatives of the Office of Assistant

Commissioner (Compliance) and 010 . The

Service also presented two papers at the 5th

Annual General Assembly of the Caribbean

Organization of Tax Administrators (COTA) in

Roseau, Dominica, in August 1977 .

During theAnnual Canadian Tax

Conference at Crews

. 010 Director

Joseph G McGowan (left) conlers with

Megan Burn, and (rii Monique Begin .

Canadian Minister of National Revenue ,

as RSR Richard Reynolds listens .

4 3

1 Richard Gardner U'S Ambassador to

Italy. presents 30 Year service award to

ASIR W,Iftlam S McCaMar ftell) at the

Rome Embassy, In the Presence of

Mrs. Edna McCarter

I

Millicent M . Wood, IRS London office secretary,

receives a superior performance award irom Assistant

Commissioner Compliance S . B . Wolfe, as RSR

William A . VoyZey observes
Chapter 7

Legal Activities
46

Chief Counsel

forthe

Internal

Revenue

Service

The Chief Counsel . an Assistant General

Counsel of the Treasury Department, is the

chief legal officer for the Internal Revenue

Service, He is a member of th e

Commissioner's executive staff . and advises

I

he Commi ssioner on all matters pertaining

to the administration and enforcement of the

internal revenue laws and related statutes,

as well as on all non-tax legal questions .

His advisory responsibilities fall into three

major areas : general, litigation and technical .

The Chief Counsel is assisted by an

Associate Chief Counsel (General), an

Associate Chief Counsel (Litigation), an

Associate Chief Counsel (rechnical), and

seven Regional Counsel located in the seven

IRS Regional offices .

The Office of Chief Counsel employs over

900 attorneys, which makes it next to the

Department of Justice, the largest law firm in

the country. These attorneys are located in

the National Office and in thirty-seven field

offices

Approximately forty percent of attorney time

is spent in the Tax Court Litigation area

handling all litigation in the United States Tax

Court. The attorneys also advise the Service

and assist the Department of Justice

attorneys on refund suits, Criminal tax cases .

suits seeking the disclosure of files and

documents of the IRS, collection suits, and

all non-tax litigation involving the Service in

Federal and state courts.

Secretary of the Treasury W. Michael Blumenthal

administers the oath of 01C . 1. IRS Chiet Counsel

Stuart E. Seigel as Mrs . Joyce Seigel holds the Bible

during the ceremony

Administrative Services

The Administrative Services Division is

responsible for the general supervision of all

matters relating to budget . administration,

and management in the Office of Chief

Counsel.

The Division coordinates the recruitment

program for the Chief Counsel's Office, runs

the Summer Employment Program for legal

interns and provides opportunities for

attorneys in the Office to participate in law

school, bar association, or in-house training

courses.

Under the aegis of the Division, an Equal

Employment Opportunity Advisory

Committee and a Federal Women's Program

Advisory Committee, composed of

representatives from each Division in the

National Office, assist in the administration of

the Chief Counsel's Equal Employment

Opportunity Program . The Office continued

to progress in goals under the Affirmative

Action Plan during this past year. Attorney

hiring goals for fiscal year 1977 were 10

percent for minorities and 20 percent for

women, and the goals were achieved by

hiring 10 percent minorities and 21 percent

women .

The Planning, Analysis and Operations

(PAO) Branch is engaged in planning and

analysis, cost/benefit studies, systems

development and operational activities such

as legal information retrieval and computer

equipment analysis. During 1977, the PAO

Branch developed procedures and began

microfiche filming of approximately 70,000

selected internal research documents. PAO

completed requirements for an automated

Criminal Tax Case Reporting System which

will link the reporting of Intelligence Division

cases in the Commissioner's Office with

Criminal Tax cases in the Chief Counsel's

Office, to provide caseload statistics

compatible with the operating procedures of

both organizations. PAO also initiated

planning efforts to determine the feasibility of

automating all Chief Counsel statistical,

administrative and case control systems .

Criminal

Tax

47

The Administrative Services Division was

responsible for the introduction and

implementation of Zero Base Budgeting in

the Office . During the latter part of the year,

the Division recruited Paralegal specialists to

assist attorneys in legal and other work .

Attorneys in the Criminal Tax area handle all

criminal tax legal matters for the IRS, review

criminal cases and decide if cases warrant

prosecution . coordinate criminal tax

prosecutions with the Department of Justice,

provide assistance to United States

attorneys in criminal tax trials upon request,

assist the Tax Court and Refund Litigation

Divisions in coordinating the application of

the civil fraud penalties, and coordinate

disclosure matters, as well as Freedom of

Information Act and Privacy Act matters, in

cases where criminal action is anticipated or

has been undertaken.

In 1977, the Criminal Tax Division of the

National Office undertook the. responsibility

to review unauthorized disclosure matters,

Criminal Tax attorneys continued to turnish

legal advice to the Intelligence Division and

the Office of International Operations during

the investigative stage of criminal tax cases .

The prerelerral assistance to these offices

has resulted in a more efficient use of

manpower in criminal tax investigations .

Significant Criminal Cases Fiscal Year

1977

United States v. Paepke, 550 F. 2d 385 (7th

Cir . 1977) held that evidence illegally seized

by State Police officers was admissible in a

subsequent criminal tax prosecution . Based

on information obtained in an illegal search

and seizure, Paepke was arrested on

narcotics charges . Incident to arrest,

$12,725 was seized from his person . The

illegally seized evidence was subsequently

suppressed . Months later Paepke filed a tax

return in which he failed to report the

$12,725 . In permitting the introduction at trial

of the money and other illegally seized

documents, the court found that the primary

purpose of the exclusionary rule had been

satisfied by the suppression of evidence in

the state court proceedings . The court held

that the local authorities at the time of

Paepke's arrest could not have foreseen the

instant criminal tax prosecution and hence

there was no deterrent effect to be achieved

by suppressing the evidence . The court also

considered the fact

I

hat the taxpayer could

have reported the $12,725 and claimed a

Fifth Amendment privilege as to its source .

Receipt and Disposal of Criminal Tax Matters-197 7

Prosecution Cases Received From Intelligence

Pending Beginnin g

Total Opened

Total Close d

Counsel Decline d

Department of Justice Decline d

U S . Attorney Decline d

Prosecutions Completed

Pending End

Opinions

Pending Beginning

Total Requeste d

Total Rendere d

Pending End

5 .03 6

3,408

2,734

264

222

274

1,97 4

5,71 0

1 7

86

4 7

56
I 48

Criminal Tax Activity-1 977

Referrals By Counsel For Prosecutio n

indictments & Informations

No True Bil l

Plea of Guilty or Nolo Contenders

Convicted After Trial

Acquitted

Nol-Prossed or Dismissed

Legal Assistance to Intelligence Investigations (in Staff Hours)

In United States v . Pomponio, 429 U .S. 10

(1976) the Supreme Court held in a

prosecution for willfully filing false income tax

returns, that "willfully" simply means a

voluntary and intentional violation of a known

legal duty. The finding of an evil motive, as

mandated by the Fourth Circuit decison was

held to be unnecessry. The Court also stated

that the term "willfully" has the same

meaning in the misdemeanor and felony

sections of the Internal Revenue Code .

United States v . Minnesota Mining and

Manufacturing Company, 551 F .2d 1106 @th

Cir . 1977) upheld the District Court's

dismissal of an indictment against 3M and

two of its principal officers for filing false

corporate income tax returns and other tax

related violations . In affirming the District

Court's decision the court found there was

substantial evidence to support the

conclusion that a prior agreement between

the Watergate Special Prosecutor's Force

and 3M prevented the prosecution of the

corporation and its officers for criminal tax

violations arising from illegal political

contributions

2,695

1,636

3 1

1 .229

24 7

5 5

11 0

17,765

In United States v . Sahadi, 555 F.2d 23,

(2nd Cir. 1977) the court upheld the

disclosure and reporting provisions of the

wagering tax laws, 26 U .S.C . § 4401, at seq .

The court found that as Congress has

enacted both specific restrictions and

criminal sanctions regarding the

unauthorized disclosure and use of wagering

tax information, the reporting requirements of

the wagering tax laws are not violative of the

Fifth Amendment privilege against

self-incrimination, The court distinguished

Marchetti v . United States, 390 U .S. 39

(1968) and Grosso v . United States, 390

U .S . 62 (1968) in that under the wagering

tax laws as existed at that time, Congress

intended that the wagering information was

to be provided to interested prosecuting

authorities, whereas the present law clearly

evidences a contrary Congressional intent .

General

Litigation

4 9

Attorneys in the General Litigation area

furnish legal advice to the IRS in connection

with the assessment and collection of Federal

taxes and assist the Departmeril of Justice in

the prosecution and defense of suits to

collect taxes, suits to recover erroneous

refunds, proceedings under the Bankruptcy

Act and other insolvencies, civil enforcement

of summonses, and injunction and

declaratory judgment actions, General

Litigation attorneys furnish extensive legal

services and assistance unrelated to

docketed cases, including day-to-day formal

and informal advice to Internal Revenue

Service Centers~ and local District Offices,

and to the Assistant Commissioners

(Compliance) and (Accounts, Collection and

Taxpayer Service).

The Tax Reform Act of 1976 made

significant changes in the General Litigation

area. The amendments to I .R .C. § 6851

changed the result of the Supreme Court's

decision in Laing v . United States, 423 U .S .

161 (1976), by providing that a termination

assessment does not end the taxable year at

the time the assessment is made . A

termination assessment pursuant to the

revised section would, contrary to the result

in Laing, require no notice of deficiency

under section 6212 within 60 days of the

making of the assessment, Rather, the Act

contains a new section, section 7429, which

provides an expeditiollus procedure for

review of the reasonableness of both

termination and jeopardy assessments by

the Service and, finally, the U .S . District

Court.

Significant changes in procedures involving

administrative summonses were also made

by the Tax Reform Act . Section 7609

provides that when a summons is served on

a third party recordkeeper to produce

records or give testimony, the person to

whom the record relates must be notified

within three days of the service of summons .

Upon nolification that person has the right

to stay compliance of the summons and to

intervene in any summons enforcement

proceeding brought by the Government. it is

anticipated that this new statutory right will

increase summons enforcement

proceedings .

The Tax Reform Act also added section

7610 which provides the Service with

authority to establish rates and conditions

under which payment may be made for

certain costs incurred by the person

complying with the administrative summons .

Another major development was the adverse

decision of the Supreme Court in G .M .

Leasing Corp . v . United States, 429 U .S. 338

(1977). The decision held that a warrantless

entry into private premises in order to effect

a seizure of taxpayer's property was in

violation of the Fourth Amendment. As a

result . where clistrainable assets are located

on residential property or in limited access

areas of business premises, the Service

must obtain a writ from a U .S . District Court

in order to enter the premises for the

purpose of seizure.

Receipt and Disposal of General Litigation Cases

National and Regional-li 197 7

Status Court

Pending September 30, 1976 10,22 0

Received 10,24 2

Disposed of 10,753

Non-Court Total

1,875' 12,095'

6 .648 16,890

6,758 17,51 1

Pending October 1, 1977 9,709 1,765 11,474

1 R.i,.d .
General Litigation and Disclosure Cases Received

1973-197 7

Types of Cases-Regions:

Bankruptcies and Receivership s

wage Earners' Plans (CH . XI 11 )

Arrangements (CH . XI )

Reorganizations & Real Property

Arrangements (CH . X and X 11 )

Miscellaneous Insolvencie s

Decedents' Estate s

Suits to Collect Taxe s

Section 241 0

(28 U .S .C . 2410) : Interpleader s

Injunctions

1973 197 4

1,153 1,11 2

81 10 2

1,526 2,273

184

140

423

34 8

100

1075 1976

1,254 1,43 1

62

197 7

1,30 9

99 104

3,440 3,422

62 6

102

413 374

608 623

22 6

23 5

230

24 2

162

565

1,828

639 393

118 68

386 41 5

720 74 2

222 255 23 1

160 230 203

272 227

449 481

188 156

424 463 546

1,371 1,663 1,877 2,876 3,698

32 31

593

42 41 24

530 564 615 729

4,556 4,310 4,860 5,305 5,561

2 .429 2,269 2,701 3,500

14,236 14,93 1

1973 1974

216 18 4

132 140

88 165

212 15 8

22 2 6

670 673

17,500 20,288 16,007

197

1975 1976

298 484

197 7

113 128

54 1

1 26 262 20 0

29 21 14

650 880 883

14 .906 15,604 18,150 21,168 16,090

General The General Legal Services function handles General Legal Cases Received Legal l g l mat ers arsng in the non-tax legal

area. Attorneys in the General Legal

Services Services function in the National Ofice and

field offices represent the Service in labor

cases, including representation hearings ,

impasse proceedings, unfair labor practices

and arbitration hearings and serve as a

member of and counsel to management

teams negotiating individual and Multi-unit

labor agreements, Further, this function

provides representation . where proper, to

IRS employees and officials who are sued

for damages in relation to actions taken

While in the due performance of their official

duties . These attorneys also represent the

Service in adverse action and discrimination

proceedings, and the Director of Practice,

Office of the Secretary of the Treasury, in

disciplinary actions brought against tax

practitioners, as well as provide On going

advice to the IRS Concerning government

Contracts, tort Claims, forfeitures, Inspection

Service matters, and other areas not directly

related to Federal tax matters . For the fiscal

year 1977 the attorneys tried 164 cases With

1,470 hours Of trial time.

During this past year. General Legal

Services received two additional

responsibilities under the Tax Reform Act of

1976. Where appropriate, its attorneys now

represent IRS employees and Officials who

are Sued under new I .R .C . § 7217 fbr

damages based On the alleged unauthorized

disclosure of tax information . The function is

now also responsible for providing

assistance to the Department Of Justice in

connection with litigation arising from the

enforcement of the new income tax return

Preparer provisions, Sections 6696, 7407

and Fefated sections .

(1973-1977)

2,05 4

1973 1974 1975 1976 1977

51

Other s

Disclosure and Testimony

Summons Case s

Erroneous Refund Suits

miscellaneous Court Cases

Advisory Opinion s

11scharges of Property from Lien

Total, All Regions

National Office :

Appeal s

Advisor y

international operations

Disclosure and Testimon y

Other Centralized Cases 1

Total, National Offic e

Total, All Regions and National Office

No lo,ger , c~te?o, o

No, ,d1od-,e sm-oo,,~_ in,l,desRaltroadne.rg.n,.,~ .~s,n Act-Slorinrurc

t,ons,nd/,, Declaw.,, R,bel

50
5

2

Refund

Litigation

The Refund Litigation Division performs all

necessary legal services on behalf of the

IRS in connection with suits instituted in the

United States District Courts and the Court

of Claims by taxpayers for refunds of taxes .

The Division determines and coordinates th

e

~uiis legal position of the Service in these r

and incorporates such determinations in

recommendations to the Department of

Justice, which handles the actual trials of

such cases

Under new I .R C § 7428, added by the Tax

Reform Act of 1976, jurisdiction is granted to

the District Court for the District of Columbia

and the Court of Claims (as veil as the Ta

x .

Court) to issue declaratory judgments in w

cases involving the initial qu

a lification or

continued qualification of exempt

organizations under section 501 (c)(3) of the

Code and certain other similar types of

declaratory judgments . The Refund Litigation

Division performs the necessary legal

seryices on behalf of the Service in

connection with such cases (except Tax

Court cases) . A significant development in refund litigation

was the Supreme Court's May 2, 1977, grant

taxpayer's petition for a writ o

f

of th

e

certiorari in Central Illinois Public Service Co . v . United States, 540 F.2d 300 (7th Cir.

1976), Dkt . No . 76-1056, October Term,

1977 . At issue is whether cash

reimbursements for noon meal expenses

incurred by employees not engaged in

overnight travel constitute wages from which

the employer must withhold federal income

tax .

Another major development occurred in the

investment credit and accelerated

depreciation areas . On April 27, 1977,

a

decision favorable to the Government in a

refund suit in the United States District Court

or the Northern District of Texas on the

Issue was reversed by the Court of Appeals. I

Texas Instruments, Inc. v . United States, 551 F .2cl 599 (5th Cir . 1977). The Court of

Appeals determined that the basis of

tangible tapes and films on which taxpayer

recorded seismic data includes thii cost of

collecting the seismic data and recording it

on the tangible property, and that basis was

not limited to the cost of the raw tape and

film,

Refund Litigation Cases Received

(1973-1977)

Tax in Litigation-Refund Suits

(In Thousands of Dollars

)

Status

Pending October 1 1976

Receive

d

Disposed

% Not Refunde

d

Pending September 30, 197

7

Status

Pending October 1, 1976

Received

Disposed

% Not Refunde

d

Pending September 30 . 197-7

Status

Pending October 1, 1976

Received

Disposed

% Not Refunde

d

Pending September 30 19i7- '

cases in Go- of Appear and the SUo,8,, Court ,a in .

IudW under the w1unths representing me court of oroln Dirodears include c ... s tried settled . and dismissed Amount in diti,ut . include, cl~l Penalties and interest ondcounterc me tor refund of ta- amn,mourti,, That Portion .1 the amount sought as aodund . h refunded to uu,paye, Ihich as

ReWled

Numbero f

Cases

2,600

850

68 1

2,769

Numbero f

Case

s

482

302

123

66 1

Number o f

Cases -

3,082

1,152

804

3 .430

District Court

s

Amount In

Dispute

3

600,29

8

92,322

57,067

635,553

Court or claims

Amount

Dispulnes

387,137

r

102,530

30,106

459,561

Total

Amount

Ispulin

D a

s

987,43

5

194,852

87,173

1,095,114

53

Amount

not

Refunded

22,911

45 .8%

Amount

not

Refunded I

18,038

61 .7

%

Amountit

RefundedI

40949

51'.7%

1973 1974 1975 1976 1977
5

4

Tax Court

Litigation

One of the major responsibilities of the

Office of Chief Counsel is the representation

of the Commissioner of internal Revenue in

all actions brought in the United States Tax

Court, Trial of Tax Court cases is generally

the responsibility of attorneys in the field

offices. The Tax Court Litigation Division in

the National Office participates in the

formulation of the positions to be adopted in

cases before the Tax Court to assure

uniformity and consistency in Tax Court

litigation.

There is a Small Tax Case procedure in the

Tax Court for expeditious handling of Tax

Court cases involving deficiencies of $1,500

or less . Such cases are heard by Tax Court

Commissioners . and neither the taxpayer nor

the government may appeal from decisions

in such cases 1 . Significant Legislatio

n

The Tax Reform Act of 1976 extended the

Tax Court's declaratory judgment jurisdiction

to controversies relating to certain types of

tax exempt organizations

'

primarily involving

claims for exemption under I .R .C . §

501 (c)(3). The Tax Court was also given

declaratory judgment jurisdiction over the

taxability of certain transfers of property

subject to section 367 and suits to restrain

or compel disclosure of the contents of

private rulings, and other similar written

determinations . At the Tax Court's request,

this office supplied assistance in developing

new Rules of Practice to govern these three

types of actions .

Trial Court Case Recor

d

(Opinions Fterderecl~Refund Litigation and Tax Court Cases

)

Action

courtofclaims

Tax Court 6

DistrictCourts

D id d in favor of Government- Number

1976 1977

2

21

30

ec a

-Percent 45.7% 68 .2

%

Decided in favor of Taxpayer -Number 14 12 -Percent 30.4% 27 .3

%

Decided partially for the

Taxpayer and partially for the

Government -Number 2 -Percent 23 .9% 4 .5

%

Total opinions

Action

46 44

SmallTaxCases

1976 1977 '

1976 1977

a

185 238

62 .1% 66.3

%

68 78

22.8% 21 .7

%

45 43

15 .1% 12.0

%

298 359

Other Total

1976 1977' 1976 197

7

Decided in favor of Government - IN umber 265 258 294 283 559 541 - Percent 62.6% 55.1% 52.9% 54 .4% 57 .1% 54~8

%

Decided in favor of Taxpayer -Number _

Percent

Decided partially for the

Taxpayer and partially for th

e

Government -Number -Percen t

Total Opinions

Related Cases are retooled

a no citation.

44 opinion, in Co- or C,.,m, im-rhag 51 cases

.

359 Oish,ons in D,s,id C-h, axoWing 400 cases

46i Tax C-l opanals, in,oNing 487 Small Tax Case,

.

5 0 To. C-rt opirson, in-Wing 769 cases other than

S %.~l Tax Court Cases. n ... . on *ach decisions a,

.

tendered dunag the "s.. . . ..r .

44 47 68 57 112 10

4

10 .4% 10 .0% 12 .2% 11 .0% 11 .4% 10 .5

%

114 163 194 180 308 343

27 .0% 34 .8% 34.9% 34 .6% 31 .5% 34 .7

%

423 468 556 520 979 988

55

Appellate Court Case Record

(Decisions-Refund Litigation and Tax Court Cases

)

Court Forthe

Total Government

No. Percent

Partly for and

Again

61

the Partly Against

Government 1he Government

No . Percent No

. Percent

_L3 3 19 2% 19 11 .1

%

Courts of Appeals 172 120 69 .8%

Originally tried i

n

TaxCourt 89, 67 75 .3%

DistrictCourts 832 53 63.9%

9 10.1% 13 14 .6%

_;4 28 .9% 6 7

2%

Supreme Court 33 1 33.3% 1 33.3% 1 33.3%_ Of the case, on mail 9 YIr ai d in Ta. Court, me Collis W As .

de 1, tendered 89 opinions 1, 143 dockets. atcl,cmg 106

docket, for the thh,ernment, 14 dockets against the goxem

.

ment, and 23 docker, P-10-11Y to' the 90,e,nm,, l

x Of the case, crigan .11y tried in District Courts,

.

the Co-s .1

Access slashed 83 pinions In 94 costs, inciuding 58 case

s

11. Significant Cases I n Commissioner v. Standard Life Insurance

Co ., 45U.S .L.W, 4842 (June 23, 1977), the

Supreme Court held that unpaid premiums

~deferred and uncollected premiums), were

includible in assets, as defined in I .RC . §

809(b)(4), and in gross premium income, as

defined in section 809(c)(1), only to the

extent of net valuation premiums and not in

the amount of the entire gross unpaid

premium .

The Tax Court held in Key Buick Company

v Commissioner, 68 TC . 178 (1977) on

appeal to Fifth Circuit, that it lacks

jurisdiction, despite enactment of Pub . L .

94-559, amending 42

U .S .C . 1988, to award

attorney fees to a petitioner, The Court

sustained the Commissioner's position that

the amendment did not apply to actions

brought by a taxpayer against the

Commissioner , I n Berger Machine Products, Inc . v .

Commissioner, 68 T .C . 358 (1977), the Tax

Court held that the merger of four active

corporations into one corporation with

resultant changes in the percentages of

stock held by individual shareholders was

not an "E" reorganization thus precluding the

carryback under section 318(b)(3) of postmerger net operating losses . I., ifla

g .x.,nnmhm . 26

g.-I he g.xamr, .m . and 10 par fly

for the 911arramml .

'I.

~ The Supreme Court hmdxhlad 3 ginions in

5 case, aclud,

Ing 1, Case 10, the 90-mlent

3.....

.galast the troxomment

and case partially tor Me go,'emmehl .

In an opinion broadening the scope of

section 263(C) to include "exploration" as

part of the production of oil and gas, the Tax

Court in Standard Oil Company Ondiana) v .

Commissioner, 68 T.C . 325 (1977), held that

intangible expenses incurred in the drilling of

wells which respondent had determined

were exploratory bore holes constituted

deductible intangible drilling and

development costs ,

In Solomon v . Commissioner, 67 TC. 379

(1976), and Catterall v. Commissioner, 68 T.C. 413 (1977), the Tax Court upheld the

CommisNoner's imputation of interest

;ncome to taxpayers under section 483 on

heir receipt of additional share, of stock,

following a 'B" reorganization, as part of a

deferred contingent stock payout,
56

A conviction of one of the petitioners under

section 7206(l ), on the charge of filing a

false income tax return, was held by the Tax

Court to collaterally estop him from denying

that the return was false and fraudulent in a

Tax Court proceeding involving the

applicability of the 50% civil fraud penalty to

the income tax deficiency for that same year .

Considine v. Commissioner, 68 T .C . 52

(1977).

Kowalski v. Commissioner,

-U .S. - (11977),

77-2 U .S .T .C. § 88,544, rev'g 544

F .2cl 686

(3rd Cir . 1976), held that a cash meal

allowance paid to a state trooper was

includable in gross income because the

payments were an accession to wealth over

which the trooper had total dominion

Payments were not excludable under I .RC.

§ 119 because meals were not furnished in

kind and section 119 abrogated the rule that

amounts paid for the convenience of the

employer were excludable .

Tax in Litigation-Tax Court

(in Thousands oi Dollars)

Status

Number o f

Cases

All Tax Court Cases~

Taxes and Penalties Overpayment

s

In Dispute Determined Claimed Determined

Pending October 1, 1976

Received

Disposed"

Recovery Rate 4

19,24

5r

$2,637,855' $288,14

2

12,268

. 10,129

Pending September 30, 1977 21,38

4

Pending October 1, 1976 2,565

'

Received

Disposed3

Recovery Rate 4

3,692

3,208

Pending September 30, 1977 3,049

777,872 16,599

545,010 168,074 17,854 6,722

30 .8% 37.6

%

2,870,717 286,887

$1 .771 '

Small Tax Cases

52

2 .561

42

2,102 $1,165 53 1

6

2 .230

55 .4%

41

30.2%

- Amount determined -o-W as percentage at Amount

Asserted or claimed, These amounts do nothmilul, proposed

assessment, Iluch ,a agreed to by the 1-paye, at District 0,

Appellate conferences. 1, the case of is claimed overpayment .the ReC liny Rates sh_ agrare repro.

. I the don,tion ol the

amolmn in dispute hicl-h.t.mcad to the ta,,yih .

r Re~ised . I Does not include an in-intoly ol non-deficiency i Employee

Plan, and E,empl Organization) cases con,ilifing of

1 2 cases

pending October I ' 1976 ' 26 receipts. 3 disposal,. and 35 maes

pendingS lipt-be, 30 . 19 77.

Im, des Win Mall to. cases and other .

O,sposals include cases tried, settled, and ofismissed . Some

of the determined amount, are for case, iiihich ere subsiri.

plushly appealed .

Tax Court Cases Received

(1973-1977)

Total above bars

is total number

of cases ,

0,624

11,380

11,206

6,974

8,799

6,419

72_,6_5_0L---

J

2,380

1973 1974

tj1uu3

7 937

12,268

8,576

Tax Cases other

then Small Cases

J .203

3 .423

3 .692

Small Tax Cases

1975 1976 1977

57

Disclosure

Attorneys in the Disclosure Division handle

matters arising under the Freedom of

Information Act, as well as requests for

disclosure of documents and testimony in

both tax and non-tax litigation . The Division

is also responsible for,providing legal advice

to the Service concerning the Privacy Act of

1974 .

Specifically, Disclosure is responsible for

Planning, directing and coordinating for the

IRS all matters relating to requests for

testimony and production of Internal

Revenue documents, records or information

under the Federal Rules of Civil or Criminal

Procedure, the Tax Court Rules, the Court of

Claims Rules and various State court rules .

Disclosure works closely with the Disclosure

Operations Division of the IRS . It also

coordinates with the Department Of Justice all litigation arising under the Freedom of

Information and Privacy Acts, including

recommendations about defense or

settlement of suits and appeals of adverse

decisions . A significant amount of Disclosure's effort in

fiscal 1977 was devoted to interpretation and

implementation of I .R .C, § 6103,

as

amended by the Tax Reform Act of 1976.

and new section 6110. Section 6110, which

became effective on November 1, 1976,

provides for disclosure. in edited form, of

certain private letter rulings, technical advice

memoranda, determination letters, and

related backgrogrid documents, and sets

forth a complex set of conditions governing

the timing, extent, and other mechanics of

that disclosure. In connection with section 6110 the Division has considered a number

of legal issues . including the availability of

materials controlled by the provision through

discovery in connection with litigation.
58

Section 6103 . the Service's basic

disclosure statute . governs the disclosure

of tax returns and return information . Its

amendment by the Tax Reform Act

significantly changed in some respects the

extent to and manner in which the Service

can provide tax returns and return

information to the Department of Justice

and other federal agencies in connection

with non-tax criminal proceedings . and to

the Department of Justice in connection

with tax litigation .

Receipt and Disposal of Disclosure Division Case

s

Types of Case

s

Disclosure opinions

Disclosure Litigation

s

Discovery opinion

s

FOIA opinion

s

FOIA Appeals

FOIA and MiscellanacUS Litigatio

n

FOIA Requests

Privacy Act opinion

s

Privacy Act Litigatio

n

Privacy Act Requests

Privacy Act Appeals

Division Totals

Pending Pending

10/11/76 Received Disposed 9/30t?

7

1072645

108

41

14

256

290

318

386

59

83

296

2934

325

344

30

80

39

1042238

150

7076

4

358

65

1,173 1,127 404

Interpretative The Interpretative Division provides legal

assistance to the Office of Assistant

Commissioner (Technical) and the Office of

Assistant Commissioner (Employee Plans

and Exempt Organizations) in the issuance

of letter rulings to taxpayers, technical

advice to IRS personnel, and revenue rulings

and revenue procedures to be published in

the Internal Revenue Bulletin . Interpretative

also provides legal assistance to other

Divisions in the Chief Counsel's Office in

determining litigating positions and in

coordinating the litigating positions with the

ruling positions of the IRS.

During FY 1977, as part of a coordinated

effort to curtail tax shelter abuses in the

motion picture industry through the use of

limited partnerships, Interpretative attorneys

assisted IRS personnel in the preparation of

two important revenue rulings . Rev . Rul, 77-

110, 1977-16 I.R .B. 7 requires a purchaser

of motion picture distribution rights through

the use of nonrecourse notes to prove that

the fair market value of the disffibution rights

approximates the amount of the nonrecourse

notes . If they do not, the amount of notes

cannot be included in the partnership's

depreciation basis nor can interest accrued

on such notes be deducted . Rev . Rul . 77-

125, 1977-17 1,R .B . 11, concludes that

certain loans of the types commonly utilized

to inance production of motion pictures

should not be considered the obligation of

the Production company and treated as part

of the cost of producing the motion picture.

Interpretative Division Cases Received

1973-1977

Type of Case 197

3

Revenue Rulings 51 1

Letter Rulings 10

7

Technical Advice 11

7

Other Advice 18

5

Total 920

59

In addition, Interpretative attorneys assisted

IRS personnel in the development of the

Service's position relative to transactions

involving cattle breeder herd tax shelters,

real estate tax shelters, and oil and gas tax

shelters .

Interpretative attorneys actively participated

with the Solicitor General's Office in the

preparation of the petition for certiorari and

the brief for the Government in the case of

United States v. Standard Life Insurance

Company, 45

U .S,L.W. 4842 (June 23,

1977), concerning the proper treatment of

deferred and uncollected premiums . Also

relative to the taxation of insurance

companies, Interpretative attorneys assisted

in the preparation of Rev . Rul . 77-316,

1977-35 I.R .B, 7, involving the proper tax

treatment of the so-called "offshore

insurance company" situation, where a

domestic corporation creates a foreign

corporation (the captive) chartered as an

insurance company which provides

insurance coverage solely to a domestic

corporation and its other Subsidiaries.

1974 1975 1976 197

7

471 443 423 39

9

124 117 114 12

2

90 80 73 s

o

158 212 257 18

9

843 852 867 790

J, I
6

0

Legislation The Legislation and Regulations Division

represents the Commissioner and the

and Service in tax legislative matters. Division

Regulations attorneys also provide the Treasury

Department's Assistant Secretary for Tax

Policy with technical assistance and

expertise in the development and drafting of

internal revenue legislation and furnish

assistance to Congressional staffs in the

drafting of committee reports on tax

legislation.

Legislation and Regulations Division

attorneys are responsible for drafting

proposed regulations and for representing

the IRS in negotiating and drafting tax

treaties with foreign governments . Working

closely with IRS officials, attorneys in this

Division participate in the preparation and

review of tax forms and instructions, hold

hearings on proposed regulations, evaluate

suggestions by IRS personnel for regulatory

changes, and review publications issued for

the information and guidance of taxpayers

and Service officials .

Legislation and Regulations

Division Cases Received

1973-1977

Type of Case 1973

Legislation46

Regulations

Miscellaneous

Total

90

38

During 1977, the Division established over

200 regulations projects to implement the

Tax Reform Act of 1976 (Pub . L . 94-455).

approved October 4, 1976 . A substantial

number of these projects were published

either as proposed or temporary regulations

during this past year, including regulations

relating to limitations on percentage

depletion in the case of oil and gas wells ;

duties of income tax return preparers ; public

inspection of written determinations of the

IRS ; exclusion of certain disability income

payments ; deduction for expenditures to

remove architectural and transportation

barriers to the handicapped and elderly ; and

qualified possession source investment

income .

In addition, the Division continued to publish

regulations implementing the Employee

Retirement Income Security Act of 1974

(Pub . L . 93-406), approved September 2,

1974, including regulations relating to

minimum vesting and funding standards for

qualified retirement plans .

1974 1975 1976 1977

77 as 59 61

56 171 85 271

43 33 46 41

174 176 289 Igo 373

Chapter8

Planning and Research I

'ki
6

2

Planning

and

Research

Planning is an integral and continuing

management activity within all organizational

co

m

portents of the Service, During 1977 IRS

planning activities encompassed preparation

of a Servicewide Long-Range Plan, testing of

improvements in work technology and

systems, organizational studies, coordination

of the preparation of testimony before

congressional committees, analysis of

pending legislation, statistical compilation

and projections of tax return data .

Completed Testing Projects

Based on successful test results, the IRS is

replacing its existing computer printers with

high-speed, non-impact printers, which can

print up to 25 times faster than conventional

printers.

During FY 1978, the IRS will install in the 10

service centers Remittance Processing

Systems (RPS) which perform in a single

operation several processing steps now

done separately . The RPS will accelerate

remittance posting and reduce processing

costs .

Taxpayer Compliance measurement

Program

The Taxpayer Compliance Measurement

Program (TCMP), a continuing research

program measuring the nature and extent of

tax law compliance, also is used to develop

computerized systems for selecting returns

for audit .

In FY 1977, TCMP compliance data and

selection formulas were developed for the

first time for organizations exempt from

taxation under IR Code Subsections,

501(c)(3) and (4 )

Work in progress includes a survey of

fiduciary returns now in field examination, a

sixth survey cycle on individual returns for

which sample selection has begun, and

planning actions for a survey of corporate

returns with no-balance sheets and with

assets between one dollar and $10 million .

Alternative Filing Period Stud

y

A sample of individual income taxpayers

was sent questionnaires on current filing

practices and seeking opinions on two

alternative filing procedures. Three-fourths Of

the taxpayers who responded said they

would continue to file their returns in the

months of January through April even if the

deadline for filing were extended,

A majority

of taxpayers was opposed to a second

alternative that would divide individual

income taxpayers into two groups-one with

a January 1-December 30 tax year and an

April 15 filing deadline, and the second with

a July 1-June 30 tax year and an October

15 filing deadline .

State tax administrators also were surveyed

on their views, with results revealing that

most states probably would change their

filing period to conform With any Federal

change . However . many state tax

administrators expressed doubt that the

changes under consideration would be

beneficial .

Tax Models

Developed 15 years ago to meet Treasury's

need for timely estimates of revenue effects

of proposed tax legislation, tax models

continue to be valuable tools for economic

planning . Five basic models-individuals,

corporations, sole proprietorships,

partnerships . and estates . are used Each

consists of generalized computer programs

used with specially structured Statistics of

Income (SOI) files.

In addition to the basic tax model for

individual returns, the Service has developed,

in accordance with the law, a special

individual model set. "State Tax Models,"

designed to permit reliable data estimates

for each of the 50 states and the District of

Columbia . These models are based on the

full Statistics of Income sample---over

200,000 returns for 1975-4nstead of the

subsample of about 100,000 returns used for

the basic model

Taxpayer Service Telephone Study

Through the use of mathematical modeling

techniques, the IRS has developed

afternatives indicating the optimum number,

size, and location of IRS toll-free telephone

sites offering taxpayer assistance

A parallel study to the IRS effort was made by a

commercial telephone site location firm,

Results from both studies are under review

to provide taxpayers with the best possible

telephone assistance at the least cost.

Legal Assistance Test Program

Arrangements were made with the law

schools of three universities to conduct test

programs for law students to provide free

legal assistance to low income taxpayers

during the audit and administrative appeals

processes, Students work under the close

supervision of practicing attorneys and law school professors . Data from the test

program are under study to determine how

this assistance affects the r6sults of audits and appeals.

Legislative Activities

The Planning and Research function is

responsible for analyzing legislative

proposals affecting the IRS and determining

probable administrative implications . Once

legislation is enacted, a plan for

implementing each provision is developed

and coordinated with all functions

responsible for administering the legislation.

During 1977 approximately 96 bills were

analyzed for their impact on the IRS .

ImPlem6ntation plans were developed for 18

Public laws, including the Tax Reform Act of

1976 and the Tax Reduction and

Simplification Act of 1977 . 6

3

Impact Of 1976 Tax Reform Act on IRS Operation s

The Tax Reform Act of 1976, which affected

over 700 sections of the Internal Revenue

Code. became law on October 4 . 1976. The late enactment of these comprehensive

changes left little time for the Service to

implement provisions effective for the 1976

tax year .

Development of tax forms was a special

problem because to distribute tax packages

by the end of the year, the IRS must have

forms ready to be printed early in October .

To meet this deadline, the Service followed

the Proposed legislation closely and

developed alternative forms to implement

new provisions. Although the Act required

changes in virtually every 1976 tax form, the

Service was able to develop, print, and

distribute the tax packages to taxpayers in

time for the filing season .

New Federal-State Agreements

Executed

The Tax Reform Act of 1976 contained major revisions of the Code that had the effect of

nullifying all Federal-State Agreements on Coordination of Tax Administration . To avoid serious interruptions of informatio n

exchanges between IRS and state tax

administration agencies, it was necessary for

new agreements to be prepared and

executed within a short period of time .

The development of new agreements was

complicated 6ecause "umbrella"

agreements w ith governors of the states no

longer cWId be made. Instead, agreements

with the heads of individual tax agencies

within each state were required, and many

states have several agencies that administer

taxes . The new law also imposed complex

limitations on the disclosure of Federal data,

privacy safeguards, and accounting

obligations on the states.

The IRS prepared a new standard

agreement that incorporated provisions of

the new disclosure laws and also contacted

each state agency to work out an agreement

satisfying the state agency and complying

with Federal law .
6 4

Statistical

Publications

ome (SOI) The annual Statistics Of In c

publications provide the public and the

government with a variety of data reported

on income tax returns, without violating

taxpayers' rights to privacy . Nearly all of the

data are estimates based on representative

samples of returns.

Preliminary SOI publications in 1977 covered

individual income tax returns for 1975 . and

corporation and business income tax returns

for 1974 . As required by the Tax Reform Act

of 1976, the 1975 report for individuals

included the first SOI statistics on the tax

liability of individuals with high total income .

computed using several different income

concepts . Detailed statistics for 1974 and

1975 also were provided to the [)apartment

of the Treasury for a special pubfication on

high income taxpayers . Publication of

statistics on this topic is now required

annually by the 1976 Act .

Selected data from the SOI reports are

shown in the following tables .

Also published in 1977 was an SOI

supplemental report on individual income tax

returns providing small area data for 1972 .

The report provides information on the

number of tax returns, adjusted gross

income, selected sources of income,

exemptions, and tax liability for each county

and for the 125 largest metropolitan areas .

As part of the international income and tax

statistical studies program, data were

;u ry to help evaluate the provided to the Trea !

effectiveness of the Domestic Interna

'

tional

Sales Corporation (DISC) provisions of the

Code as a means of promoting U.S. exports.

Other international tax studies under way

include the foreign tax credit claimed by

individuals and corporations, the activities of

foreign subsidiaries of U .S . corporations, and

the exemption of income earned abroad by

individuals . As a result of the Tax Reform Act

of 1976, work is under way on two new

studies for annual reports to Congres s

Receipts and Profits Reported by Businesses, Income Year 19741

Number of businesses Total receipts

Industry

Not income less defh,It) 2

a Sole

Active properi . Active Active propri- Active Active

corpc~ star. parther- corpo- star- partner- corparations ships ships rations ships ships rations

Sole

propri Active

etor-, parIn rships ship s

139,418 145,998 45,855 8,865

Total . . . . . . . . .

. . . . . . .

. ~1,966 10,874 1,062 3,089,701 328,262

Agriculture . forestry, and 53 3,385 123 25,453 66,867 13,198 421 7,469 1,184

fishing

Minung

-

64,804 2,991 3.765 25,904 365 -43

6 57 1 4

construction 186 896 63 137,024 32,743 11,636 1,1148 4,561 856

9,1 is 7,693 72.533 1,138 4

Manufacturing . . . . . . . 212 213 31 1,297,266 _5

Transportation and public 80 36U 1. 222,075 10,251 2,152 8 .694 1,341 1

utilities - - - . . . . . -

22,574 10,027 2.836

Wholesale and retail trade . 602 2,200 196 923,365 142,295 44 .060

Finance, insurance, and Is. 425 739 0 11 .504 3,579 -3,605

estate . . . . .

389 2,944 191 115,589 51,30 27,771 2,500 17,171 7 .050

sorvices . - . . .

Nature of business not 3

alocable . . . . . .

926 1,088 33 30 205 4

Note inconni yea, 1974 -or. a t 0 W, encee July 197 iy net add to letaus due to roundxng~ a.4 through June 1975 0.1.11

"oun ~ .1 -1.1 6.11.1a

-P'ncunnua, or butul - or. in 1-1-rouli-one, -ou "

I All iigeess are esureme. baled M so, tex

I Foredo pr.onte.,ohliel lounnuire, not oral reported on lucredule, C one F at d,Mual Incerne tax r owuner~oanipasaniut

ortu-y-oree ; Ind for oarecabons repratents .for the mw part leoiable -rn. bet.n.

-1 -Patrareg,ms ane spec,al dedui,u-

~

Inceate, sanx,ox,noneky 35,000 conachnitnea ratunui eth 142," autuacutxx

6 5

Individual Income Tax Returns : Number of Returns, Sources of Income, and Itemized Deductions, 1971-1975 1

Item

A. Number of returns

1971 1972

Total Forms 1040 and 1040A . . . . . 74,576 77,57

-

3

Taxable .

. . . . . . . .

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

80,693 83,340 82,22 9

-- 64,267 67,335 59,916 60,869-61 .49 1 Nontaxable . . . . . . . . . . . . . . . . . . . . 14,660 16,704

Returns with itemized

deductions, total . . . . . . . . . . . .

16,425 16,005 20,739

30,686 26,980 28,047

37,400 38,996 36,969

Taxable . . . . . . . . . . . . . . . . . . . . . .

. 29,285 25,709 -~26,86828,340 24,522

Nontaxable . . . . . . . . . . . . . . . . . . . . 1,401 1,272 1,180 1,225 1,552

Returns with standard

deductions, total 2 . . . . . . . . . . . 43,891 50,592 52,645 53,776 56,155

Taxable . . . . . . . . . . . . . . . . . . . . . . . 30,631 35,16 1

Nontaxalble2 . . . . . . . . . . . . . . . .

. 13,259 15,432 15,246

-

14,780 19,186

B. Sources of income

Adjusted gross income lesi

15,671 16,794 18,734

deficit, total . . . . . . . . . . . . . . . .

. 673,619 745,975 827,148 905,523 947,785

Salaries and wages . . . . . . . . . . . 564,967 622.599 687,179 758,629 795,399

Business, farm, and profession 34,226 38,559 45,330 44,043 42,98 5

Dividends in adjusted gross

income . . . . . . . . . . . . . . . . . . . . .

Interest received . . . . . . . . . . . . . . 24,731 27,400 32,174

Partnership . . . . . . . . . . . . . . . . . . . 10,803 111*058

29,564 26074

20,888 21,892

39,543 43,434

11,159 11,013 10751

Net capital gains . . . . . . . . . . . . . .

. 13,155 17,075 16,672 13,470 14,072

All other income . . . . . . . . . . . . . . . 10,066 12,490 15,900 V7,937 19,252

C. itemized deductions

Itemized deductions, total -

. . . . . . . 91,870

Taxes . . . . . . . . . . . . . . . . . . . . . . . .

Income year

1973 1974 197 5

(Thousands )

.

(Million dollars)

(Million dollars)

96,665ii 107,035 119,406 122,261

`0 36,166 39, 374 , ,

Interest pad .2

2 27347 31 942

Medical and dental expense

Other deductions . . . . . . . . . . .

. . .

9,844 11,101 12410 12,420

taxable are troin, xurunc .rno tax one, crintus 01 tuldt-al to, to' to

Note: Ilauxere Clatenued as Pletteen- (nun,

.. .to,) 11 bear . DItrul eray no, add to textile due to ouncinng

All figuree are esureate, cosine an sarnplas

include, returns win no di g-s-e

. , , 37,369 38,88 5

13,208 13,896 14,851 15,393

10,100 10,722 11,455 11,422 7

43 321 44 141
66

These studies will provide information

concerning cooperation by U.S. entities in

international boycotts and the effect of the

new svstem of taxing

U .S. corporations

operaiing in Puerto Rico and American

possessions .

Plans were completed in 1977 for statistical

studies of the impact of the Employee

Retirement Income Security Act of 1974 on

pension plans . As part of the single agency

filing requirement negotiated with the

Department of Labor (DOL) and to meet

DOL requirements, the Service will process

a statistical sample of pension plan returns

starting with plan year 1977, Meanwhile. the

IRS is proceeding with its own statistical

study for the 1976 plan year.

Statistics of Income publications may be

obtained from the Superintendent of

Documents,U .S. Government Printing Office,

Washington,D.C . 20402 .

Returns-Filed Projections

Planning throughout the Service is based on

projections of the number of returns to be

filed . The planning requirements of the

various units of the Service require that

workload projections be prepared for the

entire United States as well as for service

center areas, regions and districts .

Specialized projections are made also for.

research purposes . The projections are

updated each year to incorporate changes

in the economic and demographic outlook

as well as the effects of tax law changes

and filing patterns. Statistical techniques are

used to identify the relationships between

tax returns filed and economic and

demographic changes .

The total number of primary returns and

supplemental documents is expected to

grow from 128 .5 million in 1976 to 162.0

million in 1985 . This is an increase of 26 .1

percent and reflects the expected growth in

population and economic activity . -

The table on the next page shows selected

types of returns filed in 1976 and projected

through to 1985 by calendar year . 6

7

Selected Types of Returns Filed in 1976 and Projected for 1977, 1978, 1980, and 1985, by Calendar Year

(Thousands)

Type of return

Total Primary returns

and supplementals

Total Primary return

s

Individual, tota l

Form 1040A

Form 1040

EstiActual mated

Projected Percen

t

1976 1977 1978 1980 1985

change

1976-

1985

128,209 133,385 136,633 144,842 162,031 26.4

123,726 127,255 130,247 136,061 149,052 20.5

82,691 85,778 88,325 92,913 102.774 24 .3

27,787 28,988 29,931 30,430 30,430

9 .5

54,761 56,654 58,256 62,340 72,188 31 .8

Form 104ONR, 1040PR, and

104OSS

Form 1040C

Form 1042

113

14 10

117 129 12.5

10 10 10 -31. 0

14 15 15 16 17 16.9

Individual declaration . 7,88

5

Fiduciary

Partnership

CorporationI

Estate

Gift

Employment

2

Exempt organization3

Employee plans'

Alcohol, Tobacco and

Firearms returns

5

Excise6

8,095 8,266 8,572 9,265 17 .5

1,621 1,737 1,851 2,076 2,779 71 .4

1,135 1,153 1,178 1,225 1,342 18 .3

2,173 2,257 2,324 2.448 2,786 28.2

254 263 17

8

322 333 268

183 235 -7. 1

315 475 47. 3

24,841 25,087 25,267 25,670 26,557 6. 9

523 502 51

7

786 565 581

590 576 577~ :

905 909 915

548 624 19 .3

606 685 -12.9

579 583 -1. 2

926 947 4. 6

Total Supplementa l

Documents' 4,483

6,130 6,386 8,781 12,979 189 .5

Includes F-a 1120, 1120 S,dacial,

1 IMF . 1120 DISC. 112C,

,H . 1120 POL and 1120S

Includes FDI~~ 940, 94151FIR 941 WIE 941PR 94ISS

. 941M

,N2. 942PR. 943, 9,43PA, Ct-1 ~nd CT-2,

'

~1- 990 . 99D-C 99i~!`F 990-T 4720 and 5227

.

,,ncludds Foms 55DO, 5506C and 5&66K . '

'

ncludes Fonns 7, 6 . 11 4705, 4706, 4707

. 4708 . Aiddhol and Tobacco

,:Icludea Fix- 11

B 1 IC 720 720M 730 2290 and 4638 ncludes Fonna 1046X, 1 i20X'2688 ~8(58: 70N: 7D05. 24U, 990AR. 5300 Senes. 4578 -6 6329.
I

Chapter 9

Internal Management
70

Maintaining

IRS Integrity

and

Efficiency

The Inspection Service's internal audit and

security programs aid IRS managers in

maintaining the highest levels of efficiency

and integrity .

The Internal Audit Activities

The Internal Audit staff independently

appraises the operations of the IRS to

ascertain the extent of compliance with

established management policies and to

determine whether procedures are in

accordance with law and regulations .

Controls are reviewed in all IRS activities to

ensure that both the revenue and taxpayers'

rights are protected and that operations are

carried out efficiently, effectively, and with

integrity .

Internal Audit emphasizes the review of

operations that have widespread impact on

the Service or that are considered high risk

Priority is also given to reviews of controls for

safeguarding tax information and assuring

fair and equitable treatment of taxpayers.

improvement and Savings

Internal Audit issued 344 reports to Service

managers during the fiscal year.

Management actions on the problems

reported resulted in better service to

taxpayers, strengthened controls, and

improved operations . In addition,

management actions on Internal Audit

findings resulted in measurable savings and

additional revenue estimated to total $88

million.

Fraud, Embezzlement or Misconduct

Internal Audit gives priority to the detection

of fraud, embezzlement, or other wrongdoing on the part of Service employees or

others attempting to corrupt Service

employees . During the year, Internal Audit

also informed Internal Security of possible

breaches of integrity by 179 employees and

28 other individuals. internal Audit also

helped design and implement an improved

Servicewide Refund Scheme Detection

Program, This program resulted in the

detection of schemes claiming fraudulent

refunds of approximately $6 .5 million . Most

refunds were stopped before they were

issued to the claimants .

Internal Audit Initiatives

New procedures to improve the efficiency of

management operations were instituted,

including :

Coordinated audits of national or regional

programs are emphasized to provide

managers information on program

effectiveness or needed corrective action, as

well as conserve audit resources .

Limited reviews of high risk areas are also

used to ensure appropriate audit coverage

to small offices .

Internal Security Activitie

s

The Internal Security Division protects the

integrity of the Service by investigating high

risk areas and alerting managers and

employees to integrity hazards .

The division conducts background

investigations of IRS job applicants to assure

that quality personnel are employed, and

investigates complaints of criminal

misconduct or irregularities affecting IRS

employees or operations . Investigations may

also include IRS employees or other

personnel who unlawfully attempt to bribe .

threat, or assault Service personne l

The division also investigates the

unauthorized disclosure of Federal tax return

information, disclosure or use of information

by preparers of returns, and charges against

tax practitioners. In addition, the division

conducts special investigations and inquiries

for the Commissioner and the Office of the

Secretary of the Treasury .

During 1977 Internal Security Inspectors

arrested or were responsible for the

indictment of 158 individuals, including 91

taxpayers and tax practitioners, and 67

employees or former employees . A total of

119 defendants were convicted during the

year including 97 defendants who pleaded

guilty. Fifty of these convictions were for

bribery, 14 were for assault, and the

remainder involved such other criminal

charges as conspiracy to defraud the

government, obstruction of justice .

subscribing to false returns, disclosure of

confidential tax information and

embezzlement .

Bribery Awareness

During 1977 the division developed a video

tape presentation, "Anatomy of a Bribe,"

realistically portraying the investigation of a

bribery case from the initial offer to the

subsequent trial of the offender. This video

tape and others were distributed

Servicewide and used in bribery awareness lectures ,

Last year IRS employees continued to

thwart those who-through attempted

bribery-challenged the integrity of the Service, In 1977, 157 employees reported

180 possible bribery attempts resulting in 48

arrests or indictments. At the end of 1977 .

27 persons were awaiting trial on bribery

charges ,

Assaults and Threats on IRS

Employees

The protection and safety of IRS employees

subjected to threats and physical assaults

while performing their duties ~vas assigned

to the Internal Security Division in March

1972 . Since then prosecution has been

authorized in 208 cases, 107 cases resulted

in convictions or guilty pleas, and 20 cases

are pending trial . During 1977, 19 persons

were convicted, pleaded guilty, were placed

in the pre-trial diversion program, were

subject of revocation of probation, or were

referred for prosecution to local authorities,

Of 528 total cases investigated, most were

threat investigations, which make up almost all of the instances in which prosecution is

not authorized. In these instances.

inspectors, with the approval of the

U .S .

Attorney, contact the alleged assailant to

inform him or her of applicable Federal

statutes concerning assaults or threats on

government employees . The individual also

is advised that repetitive acts could result in

serious consequences, including

prosecution . 7

1

Investigation of Employees .

The internal Security Division completed

13 .579 investigations of employees during

the year . In addition, police record searches

were conducted on 16.386 persons

considered for temporary, short-term

appointments or for Positions created for

special economic educational programs .

These record searches resulted in the

rejection of 99 job applicants and in

disciplinary actions against 946 employees,

including separations, suspensions,

reprimands, warnings or demotions .

In a new development, an Internal Security

investigation conducted in Detroit resulted in

Federal indictments of 53 present and

former employees for falsely claiming and

collecting welfare payments, specifically Aid

to Dependent Children . The individuals were

identified by comparing the Service's payroll

list with the state welfare rolls .

Investigative Teamwor

k

In some cases,b re aches of integrity by

individuals may be investigated jointly by

Internal Audit and Internal Security with the

assistance of the IRS Intelligence Division .

One joint investigation disclose

d

weaknesses in Supervisory controls that

allowed a revenue agent to assign cases to

himself so he could give preferential

treatment to taxpayers for personal gain . The

agent later plead guilty to accepting

gratuities fromb taxpayer .

In another. Intelligence agents found the

names of IRS employees on expense

vouchers filed by corporate officials. The

matter was referred to inspection, which

found employees received gratuities from

the corporation . A former IRS supervisor was

found guilty of accepting gifts, and two

corporate officials were indicted for paying

gratuities to the former employee ,

In each region, integrity development

projects initiated by Internal Audit and

Internal Security Probed high risk Service

operations . For example, tests were made at

service centers to determine whether

existing controls and procedures protect th

e I
72

Cost Reduction

and

Management

Improvement

computerized integrated Data Retrieval

System (IDRS) from fraudulent or

unauthorized use by employees Controls

over the receipt and processing of

remittances also were tested in cashier

functions in district offices. Accountability

records were verified to determine that

receipts were processed timely and in

accordance with procedures, and payments

to vendors of goods and services, employee

travel vouchers and the uses of travel

advances were reviewed .

Violations of tax laws discovered during

internal audits and integrity investigations are

referred to the intelligence Division for

investigation if no employees are involved .

During the year there were 18 such

referrals .

During 1977 the IRS continued to give high

priority to efforts aimed at improving

management and reducing costs .

Spearheading these efforts was the

Management Objectives Program . This

program encouraged every Assistant

Commissioner to maintain a high level of

cost consciousness and to emphasize

productivity savings in all operating areas .

As a result of these efforts, involving

participation of IRS managers and

employees at every level, the Service

realized savings of many millions bf dollars.

Within the Incentive Awards Program alone,

employee participation in cost reduction

efforts resulted in the adoption of 795

employee suggestions, with resulting

tangible benefits of $987,000. In addition,

231 awards were granted for special

achievements that saved the IRS

approximately $1,552,000 .

Space and Property Management

Special emphasis has been placed on

efficient utilization of space and property

resources to reduce costs . Several internal

management reporting systems helped the

IRS monitor and control space and properly

inventories in cooperation with the General

Services Administration (GSA) .

Computerized systems for vehicle reporting

have reduced manual reporting staff time.

In 1977 more than $1 .5 million was saved

by open office planning and multiple

occupancy work station concepts .

Automated mail processing equipment

installed at one service center in 1977

increased the efficiency of mail operation

and reduced staff time so markedly that the

equipment will be placed in all 10 IRS

service centers by March 1978 .

Reports Management Program

During 1977 the Service continued its efforts

to eliminate nonessential internal

management reporting . As a result of this

action, 27 reports were cancelled at savings

of approximately $31 O,ODO a year .

Records Disposal Program

Records disposal resulted in the release of

space and equipment valued at over $2 .2

million . In accordance with regular

programs, 155,497 cubic feet of records

were destroyed and 315,436 cubic feet of

records were retired to Federal records

centers,

Telecommunications

The Service expanded its cost reduction

efforts in the area of telecommunications,

Approximately $1 .2 million in Federal

Telecommunications Systems (FTS) charges

were saved in 1977 by reducing local

telephone equipment and consolidating data

transmission facilities .

Projected conversions of telephone systems

from attended to unattended status will result

in a decrease of 11 staff years by July 1978.

Treasury

Safety

Award

to IRS

Administrative Mail Management

Special service center zip codes will be

used nationwide as of January 1, 1978,

reducing the average time of mail transit

from the taxpayer to IRS service centers by

one day . It is estimated that interest savings

to the government will exceed $5 million,

with funds available to the Treasury a day earlier .

The IRS continued to rate as one of the top

Federal agencies in safety, earning the

Secretary's Safety Award of Excellence for

1976 based on its outstanding record in the

Occupational Safety and Health Program

areas .

The IRS had a rate of 3 .5 disabling

employee injuries pbr million staff hours

worked in 1976, and Service personnel

drove 126 .3 million miles on official business

in 1976 with 745 accidents. 129 less than in

1975, and an accident frequency rate of 5,8

per million miles driven, compared with 6 .4

in 1975.

Position Management Initiatives

Position management and effective utilization

of personnel resources resulted in savings of

several million dollars during 1977,

For example, during the year over 1,200

positions in Audit, Collection and intelligence

were filled with paraprofessionals rather than

higher graded professional and technical

personnel, resulting in savings of over $6 .7 million . The use of paraprofessionals has

been explored in other functional areas,

such as Inspection, Appellate, and EP/EO .

The IRS average grade has decreased from

7.72 in 1968, to 7 .56 in 1977, while the

average grade for the Federal government

has increased from 7 .4 to 8 .0 over that same

period .

7 3

Labor-Management Activities

In December 1976, the IRS concluded

negotiations with the National Treasury

Employees Union (NTEU) resulting in a fouryear collective bargaining agreement

covering approximately 30,000 employees in

57 of the 58 district offices . In May 1977,

negotiations with NTEU involving regional

offices were concluded, resulting in a fouryear agreement covering approximately

1,700 employees in six of the seven regions .

Overall, the National Office agreement, the

multi-center agreement, and the multiregional and multi-district agreements cover

over 65,000 IRS employees .

During the year, the Service conducted

nationwide training in basic labor relations

plus advanced courses in local negotiations,

arbitration, and unfair labor practice

procedures, to increase the expertise of

personnel specialists administering

Executive Order 11491, as amended, and

the provisions of the collective bargaining

agreements .

The Unfair Labor Practice (ULP) caseload

has dropped by approximately one-third and

the arbitration caseload has risen by

approximately one-third during the past year .

The sharp drop in ULPs reflects greater

expertise by operating managers in applying

and implementing Executive Order 11491,

as amended, The rise in the arbitration

caseload can be attributed to greater

employee awarerless of the right to file

grievances and 0 appeal, and local

management interpretation of the applicable

agreement . j
74

Employment of the Handicapped

The number of handicapped Service

employees increased Slightly from 1,642 in

1976 to 1,667 in 1977, More than 140

visually handicapped employees are working

as taxpayer service representatives (TSRS) .

The IRS nominee for Outstanding Federal

Handicapped Employee of the Year was Ms .

Arieffa Woods, a blind taxpayer service

specialist (TSS) from the Los Angeles

District, symbolizing the capability and

excellence of handicapped employees .

Mary Matthews . a blind Pittsburgh District taxpayer

service representative,

a shown using the "talkng

calculator" . When Many punches out complicated tax

figures, the machine calculates the answer sn second$

and responds through the - phone by electronic

voice, Many has been employed by IRS since 1974 .

and is guided about by he, lalthfUl Irish setter, Glee,

Equal Employment opportunit

y

The Service continued to make progress in

the employment of women and minorities in

1977. Total employment from July 1976 to

July 1977 increased by 2 .99 percent, while

the number of women increased by 7 .52

percent and the number of minoritie

s

by 6 .19 percent .

The number of women and minorities at

higher grade levels and in key occupations,

including revenue agent, revenue officer, tax

auditor, attorney, and criminal investigator

also increased .

Training to instruct Equal Employment

Opportunity (EEO) counselors in Class

Discrimination Complaints was developed

during 1977 .

In addition, course

development was begun on a training

program in 1978 for Special Emphasis

Program coordinators, including the Federal

Women's Program, Spanish Speaking

Program and Upward Mobility Program .

Assistance to State

and Local Governments

IRS assistance to states, local governments,

and territories includes participation in IRS

training courses. the use of IRS training

materials, and on-site technical advisory

assistance .

In 1977, 47 tax officials from 13 states, one

city government, Puerto Rico and the Virgin

Islands participated in IRS formal training

courses, providing over 92 weeks of training aS

sistance . Courses included basic revenue

agent training, employee plan determination

techniques, exempt organizatio

n

procedures, and effective TV-Radio

communications .

Training materials or classroom assistance

also were provided to several jurisdictions to

ass ist in developing their own training

courses .

During 1977 the IRS received six requests

from states and territories for din-site

assistance under the Intergovernmental

Personnel Act (IPA) . Two formal short-term

assignments of IRS personnel were made to

Guam to improve its revenue training

program, and a survey was made of

problems in converting the Virgin Islands'

revenue processing system to ADP ,

Since the IPA program started in 1970, the

Tax Administration Advisory Services

Division (TAAS) has made 29 short-term

assignments to 10 states, Puerto Rico,

Guam, and the University of Southern

California .

Art Advisory Pane l

Since 1966 a 12-member panel of art

experts, including museum directors,

scholars, and art dealers, has helped the

Service determine the value of works of art

donated to charity or included in taxable

gifts. 7

5

The Commission's Art Advisory Panel held

two meetings during 1977 . The panel

reviewed 395 works of art with a claimed

value of over $15 million. An in-house art

group assisted the panel by responding to

field requests for valuations on antique

furniture, ceramics, Oriental and African art,

gemstones, and historical or political

memorabilia. Almost half of the appraisal

items received is now referred to the IRS inhouse art group for valuation

recommendations .

In nine years of operations the panel has

reviewed works of art appraisals valued at

over $211 million . recommending valuation

adjustments of over $63 million.

Special Agent Training

Late in 1976 the Deputy Commissioner

appointed a study group of various IRS

managerial personnel to ensure that special

agents are properly trained in criminal

investigative techniques and that the training

is cost effective.

Major recommendations of the study group

were adopted and revisions to the special

agent training were implemented during

1977 . Not only is the training now more

effective but the training time has been

reduced by three weeks, saving an

estimated $75,000 in per them costs and 3 .000 staff days annualy ,

Another recommendation of the study group,

that Intelligence Pivision employees receive

advanced training for certain specialized

duties, was adopted . "Large Case Training"

has been d6veloped to enable agents to

conduct investigations of Coordination

Examination Program cases . This program

will include studies on case analysis and

planning, corporate structure, grand juries,

referrals, and information. It will be given to

about 200 special agents in 1978 .

Intelligence computer specialist training,

which was initiated this year, proved

successful .
76

Computer Audit Specialist Training

Many corporations and small businesses

now use computers to provide tax return

information . The growth of computer

preparation of business tax information was

anticipated by the IRS several years ago,

and the need to train a cadre of IRS

employees in the techniques of using

computer records for audits was recognized .

Currently, there are more than 120 revenue

agents qualified as computer audit

specialists .

With business taxpayers developing more

sophisticated computerized records, training

for computer audit specialists during 1978

will include such advanced techniques as

Common Business Oriented Language

(COBOL), "Report Writer," data base

management. and distributive processing.

SpecializtmJ! Tax Reform Act Training

Since the Tax Reform Act of 1976 had a

significant impact on the work and

responsibilities of every IRS employee, it was

important to inform each of applicable

provisions in the Act and of its effect on

Service operations . Revisions to all course

materials were issued promptly after the Act

became law to make certain that employees

who deal with taxpayers directly were

informed of changes in the tax law . ,

Informational notices continue to clarify

regulations, rulings and interpretations for

employees.

IRS Commissioner Jerome Kunz (center) receives amiable advice from former Commissioners Donald C . Alexander and

Sheldon Cohen (left to right), as Secretary of the Treasury W Michael Blumenthal, Mrs Elaine Kunz . and former

Commissioner Johnne Walters listen. The meeting followed Mr. Kurtz's swearing-in ceremony, June 15, 1977~

Chapter 10

Appendix
78

OwN

79

Map of Regions, Districts,

and Service Centers

Key :

Region and District Legend:

H e

Contra Southe'"it Region

1 Ci n cl iRnega! i, "0h i 14 Allama, Ga

2 Cleveland, Ohio 15 Birmingham, Ala .

3 Covington, Ky . 16 Chamblee, G a

(Cincinnati SC) 17 Columbia S .C .C

4 Del M, h 18 Greensboro, N.

5 Indi'.0nja'PolC s' Ind. 19 Jackson, Miss .

6 Louisville, Ky 20 Jacksonville, Fla.

7 Parke abu rg, W, Va . 21 Memphis, Tenn .

22 Nashville, Tenn . Mid-Atlantic Region

8 Ballimore . Md .

Commissionat of

~ndrna Revenue Washington, D.C .)

0 Regional

Commissioner

Southwest Region

,9 Newark,N J, 23 Albuquerque,

0 Philadalph~a, Pa . N . Max .

~l Pittsburg h 'Pa 24 A stin, T x .

2 Richmond : Va~ 25 Cue enne, Wyo .

1 3 Wilmington . Del . 26 Galls jex .

27 Denv' Colo.

28 Little 71'o'ck, Ark .

0 District Otrector National Computer - Regional Boundary

Cente r

(Martinsburg, W. Va.)

0 Service Canter IRS Data Center ---- District Boundary

(Detroit, Mich.)

Office of International

Operations, National Offic e

29 New Orleans . La.

30 Oklahoma City, 0

W,,kla .

31 hita, Kans.

Midwest Region

32 Aberdeen, S . Oak.

33 Chicago, 111.

34 Des Moines, Iowa

3 Fargo . N . Dak.

356 Kansas Cit . Mo

37 Milwaukoe y

,

38 Omaha, NabWis

39 Springfieto

40 St . Louis, ~ 101.

41 St . Paul, Minn.

North Atlantic Region Western Regio n

42 Albany, N.Y .

43 Andoyer . Mass.

44 A gusts, Maine

45 Boston, Mass .

46 Brooklyn, N .Y.

47 Buffet

0~ N .Y.

48 Burlington, VI .

49 Hartford, Conn 50 Holtsv .

fle, N.Y .

(Brookhaven SC)

5 1 Mar .hattan, N .Y.

52 New York, N.Y .

53 P rismouth, N.H .

54 Porovidence, R .I .

55 Anchorage, Alaska

56 Battle, Idah o

57 Fresno . Calif .

58 Helena, Mont .

59 Honolulu, H-ii

60 Los Angeles, Calif.

61 Ogden, Uta h

62 Phoenix, Ariz .

63 Portland, Ore.

64 Reno, Nev.

65 Sall Lake City, Utah

66 San Francisco, Calif.

67 Seattle, Wash .
80 I

81

! k i I

Commissioners

of Internal

Revenue

1862-1977

and Acting

Commissioners

during

transitory

periods .

GeorgeS . Boutwell

Massachusetts

July 17, 18621Mar 4, 1863

JosephJ. Lewis

Pennsylvania

Mar . 18, 1863/June 30, 1865

William Orton

New York

July 1, 1865/Oct . 31, 1865

EdwardA . Rollins

New Hampshire

Nov . 1, 18651Mar . 10, 1869

Columbus Delano

Ohio

Mar . 11, 1869/Oct. 31, 1870

Alfred Pleasonton

New York

Jan . 3, 1871/Aug . 8, 1871

John W . Douglass

Pennsylvania

Aug . 9,1871 /May 14, 1875

DanielD . Praft

Indiana

May 15, 1875/July 31,1876

Green B. Raurn

Illinois

Aug . 2, 1876/Apr. 30, 1883

Walter Evans

Kentucky

May 21, 1883/Mar . 19, 1885

JosephS. Miller

West Virginia

March 20, 1885/Mar. 20, 1889

John W. Mason

West Virginia

Mar. 21, 1889/Apr . 18, 1893

JosephS. Miller

West Virginia

Apr . 19, 1893/Nov . 26, 1896 W . SL John Forman

Illinois

Nov . 27, 1896/Dec . 31, 1897

NathanB . Scoff

West Virginia

Jan . 1, 1898/Feb. 28, 1899

George W . Wilson

Ohio

Mar. 1, 1899/Nov. 27, 1900

John W. Yerkes

Kentucky

Dec . 20, 1900/Apr . 30, 1907

JohnG . Capers

South Carolina

June 5, 1907/Aug . 31, 1909

RoyalE . Cabel l

Virginia

Sept. 1, 1909/Apr . 27, 1913

William H . Osborn

North Carolina

Apr . 28, 1913/Sept . 25, 1917

DanielC . Roper

South Carolina

Sept . 26, 1917/Mar . 31, 1920

William M. Williams

Alabama

Apr . 1, 1920/Apr . 11, 1921

David H . Blair

North Carolina

May 27, 1921/May 31, 1929

Robert H . Lucas

Kentucky

June 1, 1929/Aug . 15, 1930

David Burnet

Ohio

Aug, 20, 1930/May 15, 1933

Guy T. Helevering

Kansas

June 6, 1933/Oct . 8, 1943

RobertE . Hannegan

Missouri

Oct . 9,1943/Jan . 22,1944

JosephD . Nunan, Jr .

New York

Mar. 1, 1944/June 30, 1947

GeorgeJ. Schoenernan

Rhode Island

July 1, 19471july 31, 1951

John B. Dunlap

Texas

Aug. 1, 1951/Nov . 18, 1952 T. Coleman Andrews

Virginia

Feb . 4, 1953/Oct . 31, 1955

RussellC. Harrington

Rhode Island

Dec. 5, 1955/Sept . 30,1958

Dana Latham

California

Nov,5 . 1958/Jan . 20, 1961

Mortimer M . Caplin

Virgini

a

Feb. 7, 1961/July 10, 1964

SheldonS. Cohen

Maryland

Jan . 25, 1965/Jan . 20, 1969

Randolph W. Thrower

Georgia

Apr . 1, 1969/June 22, 1971

Johnnie M. Walters

South Carolina

Aug, 6, 1971/Apr, 30, 1973

DonaldC. Alexander

Ohio

May 25 . 1973/Feb . 26, 1977

Jerome Kurtz

Pennsylvania

May 5,1977

Office of Commissioner of Internal Revenue

Created by Act of Congress, July 1, 1862

In addition, the following were Acting

Commissioners during periods of time when

there was no Commissioner holding the

office :

JosephJ . Lewis of Pennsylvania from Mar,5

to Mar . 17, 1863 ; John W . Douglas of

Pennsylvania from Nov, 1, 1870 to Jan, 2,

1871 : HenryC. R ogers. of Pennsylvania,

from May I to May 10, 1883, and from May I to June 4, 1907 : John J . Knox, of

Minnesota from May 11 to May 20, 1883 ;

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

Dec . 19, 1900 : Millard F . West, of Kentucky,

from Apr . 12 to May 26, 1921 ; H . F . Mires, of

Washington, from Aug . 16 to Aug . 19, 1930 :

Pressly R . Baldridge . of Iowa. from May 16

to June 5, 1933 ; HaroldN . Graves, of Illinois,

from Jan . 23 to Feb . 29. 1944 : JohnS.

Graham, of North Carolina, from Nov . 19,

1952, to Jan . 19, 1953~ Justin F . Winkle, of

New York, from Jan. 20 to Feb, 3, 1953 : 0 .

Gordon Delk, of Virginia, from Nov. 1 to Dec . 4 . 1955, and from Oct 1 to Nov. 4, 1958 :

Charles 1 . Fox, of Utah . from Jan . 21 to Feb .

6, 1961 : Bertrand M . Harding, of Texas, from

July 11, 1964 to Jan . 24, 1965 : William H .

Smith of Virginia, from Jan . 21 to Mar . 31,

1969: Harold T . Swartz of Indiana, from June

23 to Aug. 5, 197 1 : and Raymond F . Harless

of California from May 1 to May 25, 1973 :

WilliamE. Williams of Illinois from Feb . 27 to

May 4, 1977 .

internal Revenue Commissioners wro served in

Cabinet positions

Boluiln"ll DanielCR

.

=.91 .111%f the Treasury Secretary' of Mmerce

1869-1873 1933-1939

Columbus Delano RobertE. hilinngan

Secretary of the Interior Postmaster General

1870~1875 1945-1947
8

2

Principal

Officers

of the

Internal

Revenue

Service

as of

September 30,

1977

National Office

Office of the Commissioner

Jerome Kurtz

Deputy Commissioner

WilliamE . Williams

Assistant to the Commissioner

Marvin Katz

Thomas V . Glynn

Assistant to the Commissioner

(Public Affairs)

A . James Golato

Assistant to the Deputy Commissioner

Alvin H . Kolak

Accounts, Collection and

Taxpayer Service

Assistant Commissioner

James 1. Owens

Deputy Assistant Commissioner

DonaldJ . Porte

r

Division Directors:

Collection

KennethE . Luke

Program Planning and Review

Suellen P. Hamby .

Returns Processing& Accounting

RussellE. Dyke

Taxpayer Service

Stanley Goldberg

Administration

Assistant Commissioner

Joseph T. Davis

Deputy Assistant Commissioner

AlanA. Beck

Division Directors :

Facilities Management

LeoC . Inglesby

Fiscal Management

Joseph F . Kump

Personnel

BillyJ . Brown

Tax Administration Advisory Services

GordonC. Hill, Jr .

Training

Orion L . Birdsall

Equal Employment Opportunity Officer

Barbara Thompson

Compliance

Assistant Commissioner S . B . Wolfe

Deputy Assistant Commissioner

DonaldE . Bergherm

Division Directors :

Appellate

RoydellS . Rosfeld

Audit

John L . Wedick, Jr.

Disclosure Operations

Howard T. Martin

Intelligence

ThomasJ. Clancy

Office of International Operations

JosephG . McGowan

Data Services

Assistant Commissioner

PatrickJ . Ruttle

Division Directors :

Data Center, Detroit, MI

JamesE . Daly, Jr .

National Computer Center, Martinsburg, WV

WilliamE . Palmer

Service& Design

DanielN . Capozzoli

Systems Analysis

DonaldE . Curtis

Systems Programming

Carolyn Buttolph

Employee Plans/Exempt

Organizations

Assistant Commissioner

AlvinD. Lurie

Deputy Assistant Commissioner

Teddy R . Kern

Division Directors :

Actuarial

Ira Cohen

Employee Plans

FredJ. Ochs

Exempt Organizations

JosephA. Tedesco

Inspection

Assistant Commissioner

WarrenA. Bates

Deputy Assistant Commissioner

Robert L . Rebein

Division Directors:

Internal Audit

Rudolph Arena

Internal Security

WilliamE . Mulroy

Planning and Research

Assistant Commissioner

Anita F . Alpern

Deputy Assistant Commissioner

WalterE . Bergman

Division Directors :

Internal Mangement Documents

JackG . Petrie

Legislative Analysis

RondalC . Blankenship

Research and Operations Analysis

WalterE. Bergman

Statistics

Vito Natrella

Technical

Assistant Commissioner

John L. Withers

Deputy Assistant Commissioner S . A . Winbom e

Division Directors :

Corporation Tax

John W . Holt

Individual Tax

Aaron Feibel

Tax Forms and Publications

RoyJ . Linge

r

Office of Chief Counsel

Chief Counsel

StuartE. Seigel

Associate Chief Counsel (General)

LeonG . Wigdzer

Associate Chief Counsel (Litigation)

DennisJ . Fox

8

3

Associate Chief Counsel (Technical)

Lester Stein

Technical Advisors to Chief Counsel

DavidE . Dickinson

Daniel F . Folzenlogen

Staff Assistant to Chief Counsel

James T . Fuller, II I

Division Directors :

Administrative Services

Joseph H, Hairston

Criminal Tax

DavidE . Gaston

Disclosure

JamesJ. Keightley

General Legal Services

GeorgeJ . Shaw, Jr .

General Litigation

Harold T. Flanagan

Interpretative

JeromeD. Sebastian

Legislation and Regulations

RobertA . Bley

Refund Litigation

John H . Menzel

Tax Court Litigation

David R . Brennan

Regional and District Officers

Central Region

All Regional Officers at 550 Main Street,

Cincinnati, Ohio 45202, unless a different

address is indicated

Regional Commissioner

LeonC. Green '

Assistant Regional Commissioners :

Accountg, Collection& Taxpayer Service

L . Stanley Baker

Administration

Anthony W . D'Amato

Appellate

ClaudeC. Rogers, Jr.

Audit

Jack P. Chivatero

Employee Plans/Exempt Organizations

EdwinA. Kelleher

Intelligence

Harold B . Holt

I
84

District Directors :

Cincinnati, Ohio 45201

Dwight L. James, Jr.

Cleveland, Ohio 44199

RobertJ . Dath

Detroit, Michigan 48226

Roger L . Plate

Indianapolis, Indiana 46204

James W . Caldwell

Louisville, KY 40202

Paul F . Niederecker

Parkersburg, WV 26101 T. Blair Evan s

Director, Cincinnati Service Center,

Covington, KY 41011

John0 . Hummel

Regional Counsel

DavidE . Mills

Regional Inspector

JohnE . McManus

Mid-Atlantic Region

All Regional Officers at 2 Penn Center

Plaza, Philadelphia, PA 19102, unless a

different address is indicated

Regional Commissioner

WilliamD . Waters

Assistant Regional Commissioners :

Accounts, Collection& Taxpayer Service

LeroyC . Gay

Administration

Americo P . Attorri

Appellate

Reuben H . Saideman

Audit

Paul H . Thornton

Employee P16ns/Exempt Organizations

JamesJ . Casimir

Intelligence

Robert L. Browne

District Directors :

Baltimore, MD 21201

GeraldG . Portney

Newark, NJ 07102

CorneliusJ . Coleman

Philadelphia, PA 19108

James T. Rideoutte

Pittsburgh, PA 15222

Thomas L . Davis

Richmond, VA 23240

James P . Boyle

Wilmington, DE 19801

JamesE . Quinn

Director, Philadelphia Service Center,

Philadelphia, PA 19155

NormanE. Morrill

Regional Counsel

Robert L . Liken

Regional Inspector

BenjaminJ . Redmon

d

Midwest Region

All Regional Officers at One

N . Wacker

Drive, Chicago, IL 60606, unless a

different address is indicated

Regional Commissioner

Edwin P. Trainor

Assistant Regional Commissioners:

Accounts, Collection& Taxpayer Service

ThomasJ . Laycock

Administration

DavidS . Burckman

Appellate

Bernard L . Hardiek

Audit

Leon Moore

Employee Plans/Exempt Organizations

John Edwards

Intelligence

RobertJ . Bush

District Directors:

Aberdeen, SID 57401

John B . Langer

Chicago, IL 60604

Charles F . Mirian!

Des Moines, IA 50309

MichaelJ. Murphy

Fargo, ND 58102

MitchellE . Premis, Jr.

Milwaukee. WI 53202

Lawrence M . Phillips

Omaha, NEI 68102

Evevett Loury

Springfield, IL 62704

IraS. Loeb

St. Louis, MO 63101

RichardC . Voskuil

St. Paul, MN 55101 C . Dudley Switzer

Director, Kansas City Service Center,

Kansas City, MO 64170

RoyD. Clark

Regional Counsel

FrankC . Conley

219 S. Dearborn St.,

Chicago, IL 60604

Regional Inspector

John T . Kelly

North-Atlantic Region

All Regional Officers at 90 Church Street,

New York, NY 10007, unless a different

address is indicated

Regional Commissioner

PhilipE . Coates

Assistant Regional Commissioners:

Accounts, Collection& Taxpayer Service

Marshall P . Cappelli

Administration

HwryJ . Bodkin

Appellate

RichardE . Fogwell

Audit

Joseph Slipowitz

Employee Plans/Exempt Organizations

Toomer F . Carr

Intelligence

RaymondC. Turner

District Directors :

Albany, NY 12207

RaymondA . Spillman

Augusta, ME 04330

JohnJ . Jennings

Boston, MA 02203

Herbert B . Mosher

Brooklyn, NY 11201

GeorgeS . Alberts

Buffalo, NY 14202

William H . Tompkins

Burlington, VT 05401

Peter L . Dillon

Hartford, CT 06115

PeteJ . Medina

Manhattan, NY 10008

Charles H. Brennan

Portsmouth, NH 03801

Frank T . Murphy

Providence, RI 02903

JohnJ . O'Brien

Director, Andover, Service Center,

Andover, MA 01812

M . Eddie Heironimus

Director, Brookhaven Service Center,

Holtsville, NY 11799

Henry P . Seufert

Regional Counsel

TheodoreE. Davis

26 Federal Plaza,

New York, NY 10007

Regional Inspector

John T . Gallagher

85

Southeast Region

All Regional Officers at 275 Peachtree

Street,N.E., Atlanta, GA 30303, unless

a different address is indicated

Regional Commissioner

HaroldA. McGuffin

Assistant Regional Commissioners:

Accounts, Collection& Taxpayer Service

WilliamE . Douglas

Administration-

A. Dwight Hawksworth

Appellate

Tully Miller

Audit

PhilipJ. Sullivan

Employee Plans/Exempt Organizations

Billy M . Hargett

Intelligence

Anthony V . Langone

District Directors:

Atlanta, GA 30303

John W . Henderson

Birmingham, AL 35203

Dwight T . Baptist

Columbia, SC 29201

Harold Binclseil

Greensboro, NC 27401

RobertA. LeBaube

Jackson, MS 39202

William Daniel

Jacksonville, FL 32202

Charles0 . DeWitt

Nashville, TN 37203

JamesA . O'Hara

Director, Atlanta §ervice Center,

Chamblee, GA 30006

William B . Hartlage

Director, Mer~phis Service Center,

Memphis, TN 38110

ClaudeA. Kyle

Regional Counsel

JackD . Yarbrough

Regional Inspector

Dale W . Gardner I I ~ I
86

Southwest Region

All Regional Officers at 7839 Churchill Way,

Dallas, Texas 75251, unless a different

address is indicated

Regional Commissioner

Walter T. Coppinger

Assistant Regional Commissioners :

Accounts, Collection

& Taxpayer Service

JosephE . Bishop

Administration

Raymond Asturnian

Appellate

Douglas M . Moore

Audit

HowardC . Longley

Employee Plans/Exempt Organizations

Percy P. Woodard, Jr.

Intelligence

John M . Rankin, Jr.

District Directors :

Albuquerque, NM 87101

ArturoA. Jacobs

Austin, TX 78701

Robert M . McKeever

Cheyenne, WY 82001

BobbyG . Hughes

Dallas, TX 7520

2

Alden W . McCanless

Denver, CO 80265

Gerald L . Mihlbachier

Little Rock, AR 72201

PaulD . Williams

New Orleans, LA 70230

Roberl M . Cutts

Oklahoma City, OK 73102

CharlesA . Parks

Wichita, KS 67202

MauriceE . Johnson

Director, Austin Service Center,

Austin, TX 7874

0

LeonardE . Semrick

Regional Counsel

William B . Riley

1100 Commerce St .,

Dallas, TX 75242

Regional Inspector

Paul F . Kearns

Western Region

Ail Regional Officers at 525 Market Street,

San Francisco, CA 94105 unless a different

address is indicated

Regional Commissioner

ThomasA . Cardoza

Assistant Regional Commissioners :

Accounts, Collection& Taxpayer Service

John D .Johnson

Administration

KennethG . Rivett

Appellate

JamesC . Stigamire

Audit

Johnnie Robertson

Employee Plans/Exempt Organizations

Ralph F . Albrech

t

Intelligence

RichardC. Wassenaar

District Directors :

Anchorage, AK

CharlesE. Roddy

Boise, ID 83724

PhilipN . Sansotta

Helena, MT 59601

FrederickC . Nielsen

Honolulu, HI 96850

William M . Wolf

Los Angeles, CA 90012

William H . Connett

Phoenix, AZ 85025

PrescottA. Berry

Portland, OR 97204

Ralph B . Shor

t

Reno, NV 89509

Gerald F . Swanson

Salt Lake City, UT 841 11

Roland V. Wise

San Francisco, CA 94102

Francis L . Browitt

Seattle, WA 98174

MichaelD . Sassi

Director, Fresno Service Center,

Fresno, CA 9388

8

Fredric F . Perdu

e

Director, Ogden Service Center,

Ogden, UT 84402

Robert H . Terry

Regional Counsel

Emory L . Langdon

Two Embarcadero Center,

San Francisco, CA 941 11

Regional Inspector

BillyG . Morrison

Audit Charts and Tables I
88

Table 1-Audit Staff Years Realized, FY 1977

89

Years

Revenue Agents . Planned' Actuall! Percent

United States

North Atlantic

Mid-Atlantic

Southeas t

Central

Midwes t

Southwes t

Western

010

Return Fit s

ad Returns Examined in FY 1977

13,780 13,733 99.7 Revenue Tax Percent

CY 1976 Agents Auditors Total Coverage 2 7

Table 2~Returns Filed, Examinations and Audit Coverag e

, ,73 99.7

1,753 1,747 99. 7

1,587 1,567 98. 7

1,477 1,478 100.1

individual, Total 82,537,199 288,eno 1,453,246 1,742,056 2.1 1

Form 1040-Standard 28,459.841 6 .869 186,697 193,566 68

NB under sieffoo-iternized 12,236 .251 21,056 4DO,656 421 .712 3 4 5

Total 40 .696 .092 27 .925 5l 615,278 1 51

2,067 2,057 99.5 NB $10,000Under $50,000 31 .166,880 65,093 683.029 748,122 2 40

1,830 1,831 100.1

2,225 2,221 99 .8

101 99 98. 0

Tax Auditors

United States

North Atlanti c

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

01 0

Other (Permanent) 3

NB $50,000 and over 642.020 47.034 25,807 72 .841 11 35

B Under $10,000 4,467,607 43,451 95,805 139,256 3 .12

8 $10,000 under S30,000 4 .588,019 48~290 46454 94,744 2 .0 7

B $30,ODO and over 976,381 57 .017 14,798 71,815 7.36

Fiduciary 1,621 .163 10,740 141 10,881 .67

4,647 4,613 99.3 Corporation, Total 1,769.334 167,450 239 167,689 9 .48

688 688 100.0

1,248 1,238 99.2

516 519 100.6 Under $100,000 909,855 33,735 106 33 .841 3 .72

597 586 98.2

451 448 99 .3

574 560 97. 6

576 576 100. 0

1,178 1,169 99.2

802 793 98.9

67 67 100.0 Goss Estate $300,000 and over 32.958 17,134 689 17.823 54 .08

6,820 6,739 98.8

United States

North Atlanti c

Mid-Atlanti c

Southeast

Central

Midwes t

Southwes t

Western

010

'Operal,ng Fnancal Plan ,ud. R.fiala., an

.ysu,) .

,,r,,=P ., at P_ .d .

Po-,t,Dns Pealfized and Cost n-led .

~0_, nc,.

. u,,C A,d-t, E .-t- Assistant Chan at A,d,t

and Clark s

i010niters w of- f,,van .t,anai operatons

833 803 4

Assets not reporte d

$100,000 under $1 Mil 606.138 71,745 48 71,793 11 84

$1 Mil Under $10 M,I 109.180 42,089 12 42.101 3B .56

$10 Mil Under $100 IVI ;I 2o.979 10.244

$100 Wit and over 3,795 2,856

10,247 4584

2,857 75 2B

Estate, Total 253,60S 35,267 7,063 42,320 16 .69

Go.s Estate Under $300,000 220,547 18,133 6.364 24,497 11 .1 1

Gift 322,115 9,300 2,184 11.484 3 .57

Income, Estate and Gift, Total 86.503.316 511,567 1,462,863 1 .974,430 2.2B '

service Center Examination-Inc. Est . & Gift - - 1 - 150,730 171

E Income, Estate and Gill, Grand Total - 511.567 1,462,863 2,125,160 2 .461

.Cits

119.387 6,781 69 6,850 5 .74

905.162 71,026 .1 13,905 84,931 9.38

.

Employment 24,840,718 94,599 40,420 135,019 .64

722 716 99.2

987 970 98.3

855 855 100.0

1,230 1,227 99.8

143 137 95.8

service Center Disposals:

Total - - - 913,460 -

Examinations 150,730

Corrections - - - 762,730

Form 1065 (MEMO) 1,134,770 13,604 448 14,052 1.24

Form 1120S (MEMO) 398,793 41 ,936 2.2 4

Farm 1120 Disc (MEMO)

Doas not add d,e to ol,nd,ng.

3,613 111 '111 30.75
90

Table 3-Accomplishments vs Plan, FY 1977 Revenue Agents

Percent

Desys' Returns of Plan

Tax Class Plan Actual Plan Actual Desys Returns

Individual Total 2,681 2,646 295,600 288,810 99 98

Form 1040-Standard - 36 6,86 9

NB under $10,000-itemized 150 135 21,543 21,056 90 98

NB $10,000 under $50,000 387 403 61,194 65,093 104 106

NS $50,000 and over 405 412 45,281 47,034 102 104

B under $10,000 459 450 44,306 43,451 98 98

B $10,WO under $30,000 557 527 56,827 48,290 95 85

8 $30,000 and over 724 683 66,449 57,017 94 86

Fiduciary 79 72 13,488 10,740 of 80

Corporation Total 3,613 3,663 165,289 167,450 101 101

No Balance Sheet 67 39 4,785 6,781 so 142

Under $100,OW 3T7 345 38,629 33,T35 92 87

$100,000 Under $1 Mill 795 809 70,603 71,745 102 102

$1 Mil under $10 Mil 792 806 39,139 42,089 102 108

$10 Mil under $100 Mil 476 575 9,119 10,244 12l 112

$100 Mil and over 1,106 1,089 3,014 2,856 so 95

Estate 511 518 33,412 35,267 101 106

Gift 41 46 7,620 9,300 113 122

Income, Estate & Gift Total 6,925 6,945 51S,409 511,S67 100 99

Excise 171 170 67,947 71,026 100 105

Employment 262 250 94,594 94,599 95 100

Special Enforcement Program 289 175 - - 61

I D-1

91

Table 4.-Accomplishments vs Plan, FY 19T7 Tax Auditors

Percent

Desys' Returns of Plan

Tax Class Plan Actual Plan Actual Desys Returns

Individual total 2,404 2,441 1,431,485 1,463,246 102 102

Form 1040-Standard 160 177 179,699 186,697 111 104

NB under $10,00G-1temized 516 470 413,730 400,656 91 97

N8 $10,DOO under $50,DOO 978 1,067 639,990 6B3,029 109 107

NB $50,000 and over 56 60 27,555 -25,807 108 94

B under $10,000 472 434 106,507 95,805 92 90

B $10,000 under $30,000 164 174 47,952 46,454 106 97

8 $30,000 and over 57 58 16,052 14,798 102 92

Estate 35 31 7,352 7,053 88 96

Gift 9 7 2,615 2,184 78 84

Other - 2 - 380

Income, estate, gift, total 2,448 2,481 1,441,452 1,462,863 101 101

Excise 18 19 10,057 13,905 106 138

Employment 62 46 44,256 40,420 88 91

I D-1 -mi-. Mff-m-.
92

Table 5 .-Audit Attrition-Revenue Agents and Tax Auditors, FYs 1976-1977

Region FY11977 FY 1976

Revenue Agents

United States 1,134 956

North Atlantic 174 140

Mid-Atlantic 125 119

Southeast 147 134

Central 122 120

Midwest 180 155

Southwest 182 144

Western 197 137

010 7

Tax Auditors

7

United States 540 487

North Atlantic 57

Mid-Atlantic 50

5 1

64

Southeast 60 73

Central 44 43

Midwest 75 . 61

Southwest 72 55

010 7

Western 175 136

4

9 3

Table 6.-Revenue Agents and Tax Auditors (District Audit Divisions)

Percent of Returns Examined

By Type of Tax

FY 1977

Estate & Gift 2 .5%

Corporation 7.6 %

All Othe r

Excise 3 .9%

Employment 6 .1 %

Individual and

Fiduciary 79.90/.

Total returns examined 2,194,380

Percent of Time Spent on Examinations

By Type of Ta x

FY 1977

Estate & Gift 5 .9%

Corporation 36 .1 %

All Other

Excise 1 .9~/.

Employment 2.99/6

Other 2 .4%

Individual and

Fiduciary 50 .8% J,

Direct Examination Time

(Days) 2,559,81 6

r-
94 9 5

Table 6 .-Revenue Agents and Tax Auditors-Continued

Percent of Dollar Recommendations (Millions)

By Type of Tax

FY 1977

Estate & Gift 13 .6%

Corporation 50.09/6

Table 7-Large Deficiencies Recommended ($100,000 & Over)

Returns and Dollars, FYs 1976-1977

Region FY19T7 IFY 1976

Return s

United States 15,788 15,118

North Atlantic 1,065 1,120

Mid-Atlantic 719 64 2

Southeast 798 757

Central 654 583

Midwest 896 786

Southwest 651 716

All Other Western 917 656

Excise 1 .5%

Employment 3.3%

Individual and

Fiduciary 311 .61/6

Total Dolla r

Recommendations (Millions) S4,925 .6

010 88

Dollar Recommendations (Millions)

73

United States $2,889 .1 $2,894 .3

North Atlantic 612.4 801 .9

Mid-Atlantic 412.1 367 .0

Southeast 340.9 298 .7

Central 257.4 299 .0

Midwest 480.2 398 .8

Southwest 305 .6 349 .2

Western 454

010 25

.6 349.0

.9 31 .0

'Region totals do - add to US. TOW beca,se 01 specig

reoan .9 anxedurit . to, arg. ~ ...
96

Table B.-Large Deficiencies ($100,000 and over )

Percent of Relationship to Total Tax (District Audit Divisions )

FY 197 7

FY 197 6

North

Atlanti c

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

U .S . by Yea r

By Region, FY 1977

59%

58% 7

Total dollars

recommended (

millions )

$4,925 .8

$4,957 .3

39,799 42,513 10 7

Southwest 40,061 38,524 9 6

Western 69,248 59,716 86

010 1,188 1,682 142

t

I

I

509%

97

Table 9--individual Returns-Accomplishments in Relation to Plan

FY 1977

Revenue Agents

Region Planned Actual Percent

Direct Examination Time (Days)

United States 675,624 666,762 99

North Atlantic 110,481 100,588 91

Mid-Atlantic 75,439 74,698 99

Southeast 83,845 86,248 103

Central 76,808 68,198 89

Midwest 93,558 97,954 105

Southwest 93,973 101,322 108

Western 137,997 132,956 96

010 3,523 4,802 13 6

l

Returns Examined

United States 295,600 288,810 98

North Atlantic 43,445 44,098 102

Mid-Atlantic 33,465 32,645 98

Southeast 35,333 39,606 11 2

Central 33 .061 30,026 91

Midwest
98

Table JO .-Revenue Agents ACCOMPlishments-individual Returns

(District Audit Divisions)

Fiscal

Year

US, Activity

FY's 1976-1977

Direct Time (Days)

11061%

706,564

1976

1977

197 6

1977

Returns (Number)

-

9 9

Table I l .-Accomplishments in Relation to Plan-Fiduciary Returns--FY 1977

Revenue Agents

Region Planned Actual Percen t

Direct Examination Time (Days )

United States 19,862 18,265 92

North Atlantic

Mid-Atlantic

Southeast

Centra l

Midwes t

Southwes t

Wester n

01 0

Returns Examined

United States

North Atlanti c

Mid-Atlantic

Southeas t

Centra l

Midwes t

Southwes t

Western

010

3,354 4,024 12 0

3,315 2,483 7 5

2,602 2,131 82

2,075 2.193 106

3,518 3,326 95

1,973 1,464 74

3,007 2,618 87

18 17 94

13,488 10,740 8 0

2,441 1,955 80

2,249 1,608 71

1,414 1,421 10 0

1,497 1,156 77

2,448 1,986 81

1,277 1,001 78

2,157 1,609 75

5 4 80
100

Table 12-Examination Time, Returns and Dollars-4ndividual FYs 1976-1977

Revenue Agent

s

Region

Direct Examination Time Day

s

United States

Norlh Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

01

0

Returns Examined

United States

North Atlantic

'Wid-Alontr.

FY 1977 FY 197

6

666,762 706,564

100,588 106,39

3

74,698 77,29

2

86,248 93,36

7

68,198 86,210

97,954 B8,586

101,322 98,54

9

132,956 152,79

5

4,802 4,38

0

288,810 320,75

0

44,098 50,12

4

32,645 36,046

39,606 45,640

Southeast

Central

Midwest

Southwest

Western

010

Dollar Recommendations (Millions

)

United States

North Atlantic

Mid-Atiantic

Southeast

Centra l

Midwest

Southwest

Western

010

Note : Dollars may not add due to rounding .

30,026 37,55

7

42,513 37,40

6

38,524 38,21

6

59,716 74,01

7

1,682 1,74

4

$1,066.3 $953.3

179 .6 1a9 .4

148 .5 116.4

142 .5 160.3

117 .7 91.5

141 .9 106 .3

138 .0 114 .5

187 .5 160.0

10~6 15.0

Table 13-Revenue Agents

(Staff Hours Per Return

)

(individual returns by class and region FYs 1976-1977

)

Class

Tota l

Form 1040 Standar

d

Nonbusiness, under $10,000-Itemized

Nonbusiness, $10,000 under $50,00

0

Nonbusiness, $50,000 and ove

r

Business, under $10,00

0

Business, $10,000 under $30,00

0

Business, $30,000 and ove

r

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Wester

n

010

101

Fiscal Year

1977 1976

18.6 17. 5

15 .9 11.6

19 .2 17.1

13 .3 12. 6

1&2 15 . 6

22 .2 20 .9

210 19 .6

22 .8 21 .8

18 .6 1 7. 6

19 .5 19.4

18 .0 1 7

5

18 .0 16

9

19.3 16.5

18 .0 19.8

20 .1 20 .5

17 .8 14,

6

18 .2 22 .4
102

Table 14 .-Revenue Aq?nts (Dollar Recommendations Per Return)

Individual Returns by uses and Region FYs 1976-197

7

Class

Total

Form 1040 Standar

d

Nonbusiness . under $10,000-Itemize

d

Nonbusiness, $10 .000 under $50,00

0

Nonbusiness . $50,000 and ove

r

Business, under $10 .00

0

Business, $10,000 under $30,00

0

Business, $30,000 and ove

r

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

010

Fiscal Year

1977 197

6

$3,692 $2,97

2

3,398 1,251

4,510 2,619

2,454 1,84

4

6,085 5,03

7

2,191 1,81

0

1,759 1,790

5,647 5,02

5

$3,692 $2,97

2

4,074 3,778

4,548 3,22

8

3,598 3,51

2

3,920 2,435

3,338 2,842

3,583 2,99

6

3,139 2,16

2

6,308 8,585

103

Table 15-No Change Percent-4ndividual Return and Time--by Class and Region-FYs 197&1977

Revenue Agents

Class

Tota l

Form 1,040 Standar

d

NB under $10,000-Itemize

d

NB $10,000 under $50,000

NB $50,000 and ove

r

Bus . under $10,000

Bus, $10,000 under $30 .00

0

Bus . $30,000 and ove

r

Region

United State

s

North Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

010

Percent No Chang

e

Returns

FY FY

1977 197

6

13

14

14

17

13 1

5

10

12

11 1 2

16 1

6

1514

15 16

13

14

10 11

16 17

13 1

5

14 1 6

14 1 3

1314

12 14

13 20

Time

FY FY

1977 197

6

10 1

1

10 11

11 1

1

9 10

9 10

12 1 2

11 11

1112

10 1

1

109

13 15

10 10

11 1

3

11 10

10 1

0

10 11

11 15
104

Table 16-Accomplishments in Relation to Plan--Individual Retums-FY 1977

Tax Auditors

Regio n

Direct Examination rime (Days)

Planned Actual Percent

605,792 615,148 102 United States

North Atlanti c

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

01 0

Returns Examined

United States

North Atlantic

Mid-Atlantic

. Southeas t

Central

Midwes t

Southwes t

Western

010

87 .714 91,958 105

66,829 69,106 103

83,977 88,716 106

56,166 59,715 106

72,507 76,521 106

76,215 74,477 98

154,353 146,191 9 5

8,031 8,470 106

1,431,485 1,453,246 102

220,626 235,521 107

162,408 170,206 105

197,160 201,853 ~ 102

129,232 134,503 1134

162,383 177,895 11 0

163,461 150,137 92

378,274 363,629 96

17,941 19,502 109

Table 17.-Tax Auditors Accomplishments-individual Returns (District Audit Divisions)

U .S. Activity

FY's 1976-197 7

Fiscal Direct Examination Time (Days) Year

1976

197 7

197 6

1977

Returns (Number )

Planned 100%

105

652,726

111%
106

Table 18-Examination Time, Returns and Dollars-individual FYs 1976-1977

Tax Auditors

Region

Direct Examination Time (Days)

FY 1977 FY 1976

United State 615,148 652,72

6

s

North Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwes

t

Western

01

0

Returns Examined

United State

s

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

Dollar Recommendations (Millions

)

United States

North Atlantic

Mid-Atlanti

c

Southeas

t

Centra l

Midwest

Southwes

t

Wester

n

010

Note : Dollars may not add due to rounding .

91,958 103,503

69,106 79,450

88,716 105,698

59,715 63,399

76,521 75,403

74,477 66,132

146,191 150,516

8,470 8,638

1,453,246 1,544,359

235,521 265,189

170,206 204,30

1

201,853 248,827

134,503 146,290

177,895 150,584

150,137 148,538

363,629 361,650

19,502 18,98

0

$441 .0 $383 .1

76 .2 69.3

49 .8 48.0

63 .9 66.5

36 .8 34 .4

49 .8 37 .7

42 .5 37 . 1

112 .0 82 .5

10 .0 7.5

Table 19~Tax Auditors (Staff Hours per Return)

Individual Returns by Class and Region FYs 197&lWn

C4ass

Total

Form 1040 Standar

d

Nonbusiness, under $10,000-Itemiz.e

d

Noribusiness, $10,000 under $50,00

0

Nonbusiness, $50,000 and ove

r

Business, under $10,00

0

Business, $10,000 under $30 .00

0

Business, $30,000 and ove

r

Region

United State

s

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

107

Fiscal Yea

r

1977 197

6

3.2 3.0 1 .8 1.7 2.5 2 .4 3 .0 2. 8 3 .6 3. 6 8 .1 8.0 6 .8 6 .4 6 .3 6.5 3.2 3. 0 2 .9 2. 7 3 .0 2. 7 3 .4 3 . 1 3 .4 3 . 1 3.2 3 .4

.3.5

3 .4

3 .1

2 . 8

2 .4

2 .6
108 109

I

Table 20.-Tax Auditors (Dollar Recommendations per Return)

Individual Returns by Class and Region FYs 1976-1977

Class

Tota l

Form 1040 Standard

Fiscal Yea r

1977 1976

S303 $248

181 144

Nonlousiness, under $10,000-itemized 209 183

Nomdusiness, $10,000 under $50,000 300 253

Nonbusiness, $50,000 and over 668 726

Business, under $10,000 645 57 0

Business, $10,GOO under$30,000 575 501

Business, S30 .000 and ove r

Region

United State s

North Atlanti c

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Wester n

010

876 840

$303 $248

323 261

293 235

317 267

273 235

280 250

283 250

308 228

512 397

Table 21 .-No Change Percent-4ndividual Returns and Time by Class and Region,

FY 1976-1977

Tax Auditors

Percent No Chang e

Clas s

Total

Returns Time

IFY FY FY FY

1977 1976 1977 1976

26 24 19 17

Form 1040-Standard 33 33 29 29

NB Under $10,000--4temized 27 21 22 1 6

NB $10 .000 Under$50,000 23 23 17 16

NB $50,000 and Over 41 37 28 25

Business Under $10,000 24 18 19 15

Business $10,000 Under $30,000 20 14 15 11

Business $30,000 and Over ___29 22 2_1 17

Region

United States 26 24 19 17

North Atlantic 26 26 21 20

Mid-Atlantic 26 28 20 21

Southeast 27 21 19 1 4

Central 28 24 21 1 7

Midwest 2 8

Southwest

Western

010

20 20 . 4

29 25 21 6

22 21 17 15

23 ; 25 17 18
110

Table 22-Corporation Returns-Accomplishments In Relation To Plan

FY 1977

Revenue Agent s

Region

Direct Examination Time (Days)

Planned Actual Percent

United States 910,438 923,093 101

North Atlanti c

Mid-Atlantic

Southeast

Central

Midwes t

Southwes t

Western

01 0

Returns Examined

United State s

North Atlantic

Mid-Atlanti c

Southeast

Centra l

Midwest

Southwest

Western

010

225,055 220,963 98

130,504 131.714 101

90,084 89,785 100

105,373 109,391 104

134,975 140,751 1G4

96,839 95,902 99

119,335 126,911 106

8,273 7,679 93

165,289 167,450 10 1

33,438 36,454 109

24,061 24,594 102

19,026 20,065 105

23,173 21,003 91

23,160 25,075 108

16,672 . 16,666 100

25,137 22,911 91

622 682 110

Table 23-Revenue Agent Audits Of Corporations (Staff Hours Per Return) Corporation Returns by Class Group and Region FYs 1976-1977

Class

Total

No balance sheet

-

28 .7

Under $100,0 0- 20. 2

$100,000 under $1 Mil 23 .3

$1 Mil under $10 Mi l

$10 Mil under $100 Mi l

$100 Mil and over

Fiscal Year

1977 1976

39.6 38.5

27. 0

20 .6

22 .9

40 .6 39. 5

99 .5 97. 7

470 .9 462.4

Region

United States 39.6 38.5

North Atlanti c

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

010

43.8 45.2

36.9 34 .0

39 .5 30. 8

35 .5 36. 4

39 .6 46. 5

38 .9 39. 5

39 .0 33.8

73.2 52.9
112

Table 24-Revenue Agent Audits of Corporations (Dollar Recommendations Per Return)

Corporation Returns by Class Group and Region FYs 1976-1977

Clas s

Tota l

No balance sheet

Under $100,000

Fiscal Yea r

1977 1976

$ 14,664 $ 16,91 6

16,256 7,631

1,442 1,446

$100,000 under $1 Mil 2,925 2,933

$1 Mil under $10 Mil 9,856 10,337

$10 Mil under $100 Mil 42,123 39,104

$100 Mil and over 434,320 577,922

Region

United States $ 14,664 $ 16,91 6

North Atlanti c

Mid-Atlanti c

Southeas t

Centra l

Midwes t

Southwest

Western

010

15,793 22,322

13,666 13,689

16,063 10,395

10,307 15,757

16,983 18,04 8

12,272 18,893

15,587 16,31 6

25,487 22,921

11 3

Table 25~Examinatlon Time, Returns and Dollars-Corporation-FYs 1976-1977

Revenue Agents

Region

Direct Examination Time (Days)

FY 1977 FY1 976

United States 923,093 924,494

North Atlanti c

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

01 0

Returns Examined

United States

North Atlantic

Mid-Atlanti c

Southeast

Central

Midwes t

Southwes t

Western

010

Dollar Recommendations (Millions )

United State s

North Atlanti c

Mid-Atlanti c

Southeast

Centra l

Midwest

Southwest

Western

220,963 226,975

131,714 131,464

89,785 93,502

109,391 101,761

140,751 136,788

95,902 114,588

126,911 124,725

7,679 6,786

167,450 160,628

36,454 35,61 7

24,594 24,51 6

20,065 20,91 1

21,003 20,595

25,075 19,860

16,666 16.54 5

22 .911 21,808

682 776

$2,455.5 $2,717. 1

575.7 795. 0

336.1 335. 6

322 .3 217 .4

216.5 324. 5

425 .9 358 .4

204 .5 312. 6

357 .1 355. 8

010 17 .4 17.8

Note : Dollars may not add due to rounding,
114

Table 26~No Change Percent-Coirration--Returns and TimeBy Class Group and Region-FYs 1 6-1977

Revenue Agents

Class

Tota l

No Balance Sheet

Under $100,000

$100,000 Under $1 Mi l

$1 Mil Under $10 Mil

$10 Mil Under $100 Mil

$100 Mil and Ove r

Region

United State s

North Atlanti c

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

01 0

Table 27 .-Estate Tax Return s

Total Examinations

Percent No Change

Returns rime

1977 1976 1977 1976

25 26 is is

21 31 14 21

33 32 28 27

26 23 23 2 1

22 23 16 1 8

15 15 8 6

7 6 2 1

25 26 15 15

24 26 15 1 4

28 30 17 19

23 26 14 1 7

29 27 17 15

24 22 14 12

26 28 16 16-

24 23 14 1 5

19 39 14 3 0

Revenue Agents Tax Auditors

FY 1977 FY 1976 FY 1977 FY 1976

35,267 38,425 7,053 8,258

Total Direct Examination Time (Days) 130,462 146,263 7,701 9,752

Total Dollar Recommendations (Mils) $586.8 $536 .6 $10.6 $12 .1

Staffhours per Return 31 .2 29.7 9 .4 8 .9

ollar Recommendation per Return $16,639 $13,964 $1,496 $1,468

No Change Percentage 13 13 19 20

11 5

Table 28 .-Gift Tax Return s

Total Examination s

10tal Direct Examination Time (Days)

Revenue Agents Tax Auditors

FY 1977 FY 1976 FY 1977 FY 197 6

9,300 9,919 2,184 2,58 8

11,701 13 .961 1,835 2,03 4

Total Dollar Recommendations (Mils) $70 .5 $66.6 $2 .0 $2 .9

Staffhours per Retur n

Dollar Recommendation per Return

No Change Percentag e

Table 29.-Excise Tax Returns

Total Examinations

11 .6 10 .4 6 .6 6.0

$7,580 $6,714 $903 s1,184

23 25 30 30

Revenue Agents Tax Auditors

FY 1977 FY 1976 FY 1977 FY 1976

71,026 77,105 13,905 12,189

Total Direct Examination Time (Days) 42,930 46,778 4,788 4.949

Total Dollar Recommendations (Mils) '$71 .2 $80.6 $2.0 $2 .5

Staffhours per Retur n

Dollar Recommendation per Return

No Change Percentage

4 .3 4.3 1 .6 1.7

$1,003 $1,045 $141 $202

27 28 13 17
116

Table 30.-Employment Tax Returns

Revenue Agents Tax Auditors

FY 11977 FY 1976 FY 1977 FY 197 6

Total Examinations 94,599 90,435 40,420 40,132

Total Direct Examination Time (Days) 63,041 63,557 11,485 10,33 8

Total Dollar Recommendations (Mils) $145.8 $144 .1 $16 .6 $17.3

Staffhours per Return 4.7 4.7 1 .6 1.6

Dollar Recommendation per Return $1,541 $1,593 $411 $432

No Change Percentage 15 13 9 6

Table 31~Fiduclary Tax Returns

Revenue Agents Tax Auditor s

FY 1977 FY 1976 FY 1977 FY 197 6

Total Examinations 10,740 17,078 141 100

Total Direct Examination Time (Days) 18,255 31,240 21 49

Total Dollar Recommendations (Mils) $47 .4 $35.5 1 1

Staffhours per Return 14 .3 14.8 5 .6 4 .4

Dollar Recommendations per Return $4,413 $2,081 $392 $851

No Change Percentage 40 50 30 28

-Less tMn $100 000

Statistical Tables
11 8

Table I ~Internal revenue collections by sources and by internal revenue regions, districts, States, and other

areas (in thousands of dollars)

Internal marina regions, districts,

St... am other insull, (Swiss

hisernsearnadby.ingledletrier.

~ncHcSbSdI.pb.rdh-. ;hW,1 .

ro,otheirStableuieSlititti.tion,

bible)

United stelas, terutI . . .. . . . . . .

. . . . . . .

Wort-11antic Region . .. . .

Albany . . .. . . . .. . . de(c)turu- -

., .. . . . .. . .. . .. . .. ( .an.) . . . . . . . . . .

( ..-u. ... I . . . . . .

EI'maryn Sea I thr

Bu al, See ~c be

Sue

. . . . . . . . . . .

Manhattan I-I . . . . . . . .

Sa

o

Por-rh 'H"

Mplwidb- . . . . . . . (Rhode Isla.,

ld~Atlartlc Region alukhrent . . . . . . . . . . . . . . . . . . . .

. . . . . . Own m

N Iuk- paw . . . . . . . . . . . . . W) INPro beZZ

I end'M . . . . . . . . . . . : r, . . .

Southall Region . . . . . . . . . . . . .

Aflarta . . . . . . . . . . . . . . . Jdawgul) . . .

in . . . . . . . . . . . . . . . . . . . . . . . .

Coh.

Greensboro . . . our

.)

(North r-1

lalkson ~Iuleuesal . . . . . . .

Folds) : . . . . . . .. .

Ndsh~ 11. . . . . . . . . . . . . . . (Tennessee)

C-1.I Rgi I on .. . .. . .. .. . ow C, nhal. .. . . . . .. . .. .

(Sdk*(d)*W*

0=1end . .

. . (Sao (d) the

Detroit rat . . . . . . . . . . . . . .. .

(Michugan)

'__S.

~Wenhml,y W )

. . . . . .. . .. I West V"I"'

,

M Pat

Idshim Rag on . . .. . .. . .

.~~ ~ :~

abordean . .. . .. . . . . . . . sketa) -

Sea ( i ell . . .. . b

.r,r.* - : :- :: : : : 1 : : : : :

Fag.71.. . .. . . . . . . . (=6Sk*S !

WhI.a .k . in

Om he !NS-baska) . . . . . .

S, Lout. . . . . . . . . . . . . . . (Mulsou") . . . . . . . . . . . . -

S : paul ., . . . . . . . . . . . . . (M.-Notal) . . . . . . . . . . . . .

S=dRag . . . . . . . . . (Sea to) bal

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

A quani IN- u theco) M

Aglo~`h See (1) below, h

61

""'Zook ut"W's,

Ne I-bu, ...a)

Cikla- 0 1 WWen'ta !K"'.'.)

: : : :s : Anchor (Xsj6)

Gods . . . . . . . . . . . . . . . . . (Idaho) . . . . .

.Man

Hord.l. !H'S., 2)"! . . . . . . . . .

Sea

Peat am . . . . . . . . . . . . . (Oregon) . . . . . . . . . . . . . . .

Ran,. . . . . . . . . . . . . . . . . . JN-d.)

So Uk

S Int 1,.*-O-'y Saa

S... 1. Wadohn, . . .

Office of 'itia Fheohn I . I -Il7l deal Opearstlons : ~ ~ . . . . .

PUM. . . .. . I . . . . . . - . . . . . . . .

. . .

Food, I M, daideatent 10 . . . . . . . - . . . . . . .

Gssol%, lubmating W, am eFICA cled,ts" . . . . . . . . . . . . . . . .

T,=I- 1.GinelemnI of Gush, . . . . .

Oil ukes 0 Federal arnployeas . . . .

cawing 0 te to, E . .. I.-

a-bon fuel and oi-Air Force a

1

P,"a

Adl,s MM to Presidential! Eldetlen Fund'

Earn.fincerm Crtkabl~ . . . . . . . . . . . . . .. .

(a~ Caluo, Itheout n

to ,

I Naw Yed, . . . . . . . . . . .

d ~ Ohio . .. . . . . . . . . . . . .

T... . . . . . . .

lndi,idu,l theories Old thelturYtheirt terhas

To .1 In,- Cistpoll 1

.--a " withheld.

-

n

net nwit.u. I--

Iollections Total and

(21 (3) (4)

In-.

a0thheld unsurt,

am Railroad

1 "t .1CA reirelithed Inalle

(5) (6) (7)

3511,139 ", WN9804 V2 01 660 46093249 :.1 7

358 II :N2:M QJ10"iiiii S,'F7V,'i71

1490S 1 .889.842 M7 .402

"OV':'70n' 'W"M 755.1339 153,261

e.'Ol"12 1,252.760 6,950~413 1 .007 .453

W547 4,733397 I'muI

':'l 1 .3 :'129'1 979,470 3.910 .861 5791U606

378,216 32 .570 333,034 74 :B41

9 .909,446 1,878

0 1

.317 7.308 .N9 1352 .937

22 .987 .439 9 5,83 16,2 7 .25 3 .693,218

878 . 10 59 I'm 719 0 .272 147 .80

1,230 .984 169,241 1, 022 .600 1,W1 .630

NtI:= 62,173 .662 13 1 21

10.548 .530 1 ':&' 1~1

1

:'..!% krN

56 IS 16 2:~Wl 26,763,2~ 8 U , .995,913 1 .

' :Z7 :001 SAll 1:37

'6:8.1! EP's ...

94B .3N 3,288 783

81 6 616,M5 On 5 1037 4:2 .762 ONZW5

N53 39 301,238 1 .154 .220 ","183 :

39.Mi .400 6,358,747 30169,11'saut .7711, 7

M2, 5

. 118,221 725~989 4,002.690 UN6

2.999.670 33527 0 530,6110 21:1:14 6

2 281 :869 SIB 3W 311 '63tt :~71

7 '14'

'S

:4 2 1.248.570 4,457365 :4

1 .337~4 7 161,372 1,115,105 328 .6n

2 .2.50 :11 1 11 .024,4927 :3 .553 8.921,990 71

Ali 826057

9.912,327 26 11 S 2796,123 7,876.73 195 A

1 .

"4114 35 ", Al l

11 :. A63 6,476,474 47 .273

2 1,182 .520 43'

.7

:~11 : 6 9.N6A85

47 14899 10:951,109 1 .493,3W 14,642:

It

6

4,1 . 1,097,02 181.787 714.303 4931 .977

179,9130 487,4~ 2.425

'gU

W9.320

.~44"1.1)13 197,278 1, 1 0,401 2%,276

P7 11~0624 654 48 .521 M 7,181 .917

'100 I5I W 07 5:"g 46, 1 .U5

.7

3:43O1 :7M 5.172 .W4 23,068.4 2,198 9114 '0 '0:437 W3 514,262 2,611 71M6

24 US02 536 .013 200.469

' I

I

0.4 2 :2'M' 1,234~458 4,n5

1 9

.f5,I 1 750,085

2.141,01 306204 1 267 5 413AN

8,150,36ut 296 :087 6: 70:01471

7,273 .307 1.067,707 5,911,030 79560

4 5W,751 3,200.107 SIV171112

. ":.2 :' 757 14"5 6,W2A32 n,g . 3 7,on NO

13S 1 ~97 :4711 39, 533 1 84557

5:288 14,12263 846 :16 2.5 10,171,M

647; 4 06,05WO U7.M 122,532 as

8. 1,544,08 6,147,= 1 .751 .119 261 .658

377147 2 .682,1179 579,166

3Z57 13 095 1,515:3DO5 207 : 1,247,782 389 .800

3 3,0 1 :2 7 769.,u13 :1,40 7034 63

907,2036 9 11 9% :17 2,48 714 7 M,537

13111.0 616 2 .058A U .151

44,11~4 :.114 1,11:111

56803.449 52A99 7938 1 SIT

965 :611 139,939 7 .654 169 .399

J .&IS 703 50 .263 5W.717 183,661

106 .687 1US4O 930.670 165.336

1 774 Ole; 3 .10 747 15.582,5OG 2,992

29 3 :050:6 7 OTOO 1.787,471 412:4121

5.363 . SW 1101 :133 3.88 552 71 ISS:4

'

.J~932.:71733 161% 783=6 53

4 162 172 72~

1 73

is, 2~175 11 N~ 2 .2.7.~'22~ 25, 4~ 674 W7,888 4,119,901 ~3 7 887.1W

1,-21 ,No 43,236 1,02 W 260

307'

.286 3 1389W 39, 7 18:1374

947,974 .969 11.8,8115 249,861

-7.746,870 -2~628.429 -4,841,822

531 .450

-19.690

121 .O m

26

36,52 9

7.171182

36,800 494 649 494 .649

-19 :690 -

-121,096

-

36 .529

7,7112

Total. 1.States net an-. b222 M-EZIS 1 .210 .3112

37 :50,154 1 '9= 3011,0113

11UZ946 1 .984 7.51D

SM4111 8X1 Sam

5,885331 10 .993 46:636

3 .593JIu, 24,579 30,673

3,3 1115 036 27

20 '7'

IM 3

:2~

6,3;541~:16 171 161 15", .10,

14,4 988 6,W 14 .399

15WA"O 13

8655U 445 '7 :;.

37,768,166 no,739 265 .075

6,831,075 IT3.865 13.9tS

:4 200,018 102.9n

I7:V . 711 276.586 50,726

4:2 26,62B 33,792

3 7 I 21 1 :1 2 63.439 26,441

005,767 '53 1 9

24,WS,I" 1539.606 IWZ4

32,415AM ':6 4 30,187

9

1,9M ."Ell 7 1 BXO

:.1 3a, 14058

'

'~ :4

3 45e 394It It7076

777,016 W

71 71:4~~4 4

':=:' 9

. 'l

qI 6 32kl"N

29 IN "I114,547 234466

5:565 .947 18,913

7 .796 .051 8,510 59'

.

3 8267 3 :301.2 :21 26,87B

8 M7 1.027 26,671

1 .748 1,- 60 .103 1 17

a 7.750 116 6:m'

40,412,050 658,2433 269,0872 2

310.456

20:501 .624 249511 1 118.050

1 762.870 8`19

334.992

5 '

.13W2

3:N7.856 S ~:3 36:317. 1

1

.2 2 9,249

. ~ 60 32: 8' 136007 40.W

4 .946 177.035 31,113

2 .300:687 4.190 15,51 8

21,MAN 116.m 'WAII

8 .5 4911

W

:0

111 578 5910 2 25A

223,118 0 2,03 9

4 :1 .035 12 .325 4054

071 .005 16,Ul t 5:785

m8 '1'~13 .029 1 .118

2,~ 42 .629 1,923

20 16WI 1,3117 :13~1

1 'N' 9.871 1 . 74

1 M A

36,046,405 MASS 296,365

636 4,, - - W

6232 7 903 5".

3 1280 50, 3272

7 0

7

75 .236 2

12,477,932 539 1118:697

1,30,948 37B 11 .024

3,281 .259 26,293 23,421 5

610,158 2 653

"A" AO 773,023 1 18 6

9 1 33353 87'720

3 .198.317 3- 27 1034,279

1,037 Tel

1 I~:! 2:'676

07.881 07 05 1 . -

_1 .909'~ -91.658 162,365

-19 .6

-121 .DSO

36,55-

III

7 .762

- -

24 .429,544 IN291 '99 .4,9 37

34

.997,043

.569,609 1

5,M6,421

7 .161,211

29

1,2

.956,440 5

'11 1 . .

.193

.=~6

.185 1

.91 132 0 .802511 ' 253.771 ANM

35.907.268 AO ~359 26,821 .012.993 33.570 '60-30'

19AW.501 2,977 .437 15,52 :059 2 : 29.794 13 .361,998 27:41 03 :e~

3 0

4, 5

1 57100 121,569131 03

. 1.

17:106.616 2.155,3911 14 .114 1" 2 4 3

16,318 .652 3,726: OB 454:614 37,9BO gg .65D 22384,295 4,IWO46

11 9

Table l .-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas-Continued (In thousands of dollarig)

Internal rinerwe MIMS, districts,

State. .it other -ars' stalast

represtartedbleingledhitrict,

t1 r

:d""" "Pa""" "We" otherStudelithownetbodeen

of thath l

United Slalit., total . . . . . . . . . . . . . . . . . . . .

Ndrlh~All-ic Region . . . . . . . . . . . . . . . . .

Albany . . . . . ~111 III We.) . . . . . BgA uste- Maine) -. . . . . ..

are, . .

=n . . . M"b'.S'b.")) . :

~S a (c) below) . . . . . . . . .

B .,hrgtor .

. V:mont) . . __ 1 . . 1

'n . : ~ C.*. '('I) 1 below

PPO"Shmuth (No. H

e

donc,_ .- .

(Rhode 1.1n%1 ;11) Mid,.o I.

Atlantic Region .

. . . .

. ~uuh . . . . . . .. . . . .

:'y1j"d & 0 C say)

Nth,ak . . . .

. . ~N`

"1n 1. bd.*,

p 'III, p"a ~S below) . . .. ..

Richmond- Wit (Vupgrja)

Se ;Zgl.n . (Doa."e)

*9,*n . . . . . . . . . . . . . . . . . . . .. .

Atlanta (Goorgi.) . . . . . . . . . . . .

Bereung a, Alabierna) ~ . . . . . . . . . .

. .

C,iu,b ~SNh~"ItCarch,%,)' . : : : : .

Greenabon,

J-kJ.ck- it,

W'Slu'upp')

a

. ~ . : ~ . ~ . ~'TSnr ""' aIiIi .as

CM`l N on . . . . . . .

. ~. I . . . . 1 . 1 . l : : : : :

C4-rnOg . . . . . . . . . . (So. (d) We.)

Cle,eta, , . . .

Detroit . ~SMj-h~,'~) nb)"' c .It

Inkfianalbous (India .,) . ~ . . . . .

.

. .

Louut,,do p . . . . .. . (Kentucky )

al,enRult; . . . . . . . . (W- Vlg,n,.) . . . .

. . . . 1 M lients A gi.n . . . . . . . . . . . . . . . . . . it . b) below), belieur, .. . .

~,"uh .....

Cluca S.

(`N.,w,`h)

. . . .

F Dakota) . . . . .

. . V21Lae . . . 'W'socre,n )

St . Lo.i~

SI Paul . , . . .

. . . . .

Springhill . . See It) below)

StAlthenest R . . . . . . .

bu t

Aush : : New %I-w)

C~ ...no . . . . ~W,,, Sed (,;,

Was be

be~la`alock

~Col,edl,) . ~ . 1 . ~

. . . . . . A,karduu~) . .

.

.

2 -

New Glenn, (Lo,uuana)

(Alati0the City (Oklillmrrui)

.1chul.

(K.rad.) Wilstern Region . . . . . . .. . . . . . . . .

111 Beis.*~A!l ~Al SAO) . . .

. Id:W) . . . . . . . . . . . .

Helena : : Her.l.l .

LPOSArgelde . (Sao S) Mich") -

re-I. . . . . . . . . . (Ar-). . . . .. .

. . . .

Portland ~1ad111) .

Piano . . .

Salt Lake City . . . . . . . (Utah) . . . .

San Flarkt,c, . . . . . . . (Sea (a) bal

Seattle (W.ehhngI.n) . . .

ollicabil Puerto n t

Rco . . .. . .. . . . . . . . . . . . . . . .

On .. . . .. . .. . . . . . . .. . . . . . . . . .

ndistilb ted :

Fedehill M, decosils'O . . . . . . . . . . . . . . . . . . . . . . . ..

Gaablae. burcaung &I, am th.cal. FICA credit,"

T,-hishined to G .-enenu t Guturn . . . . . . . . . . . .

Win leakhril Cj= " :rnp.1.,.,dd

'=nT

tor E... is

g

P,avi then fuel and 01-- F- and

Na

"

dantail

E

,,,,nd"

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

.

lablenn, he S . . . . ..

(c) N"aw, York

jd) on.

tin,

,

a

.

durnstrl

. . . . . . . . . ~';'TP ,

We Gin

I. bar

E ..hu,

Uses

Iob. ,

(seen .1 Total imported

I c.h, .. anue of (Col

.

1 26 30 eir'n, a I. .w

' 36: 41 : 12, 18 Cuirto by am and 22) Total Me)

(a) (9) (12) (13 )

5164SAW I .T75,866

QW,9104 M

,

6'112

39.39

20,854'

6 .901

.728

213 .075 1,537

17.439 16 .848

IOBA52 20,874

7.804 l .n4

11.793 47.074

246.328 172,464

21 378 SAN

20,984 4.BN

Will 210,876

151 .952 07,006

141 161 :.7; -.-4

U 139 4

92 .563 21 88

.1 493

.0

33 28 10 2

19 .166 2N . 41

7116,41H .399

82.166 27,538

45.669 17,795

40,103 1:2174

82,829 73

MAN

375,609 .4~2'3' 1 .

a 63,411 22,767

28,157 189,010

97,491 31 .176

W'.0

:187 65,642

133A5i 21 .671

48 .510 . .ON

26 .805

1U.24. 2731:251 - 99 1

5 94N 5.889

8: 83 114,53 1

110,357 17 :11

18,731 2 244

65.929 26,591

61,220 13,

134 .364 46 .OM04

77,279 28.329

'1'879 21,076

746,367 302.5 n

'7

2'0

.9:73

i"WI 5.7807

1675225:07.661 M 83.156

I la

67676 25,73393

"

074 21

.1

"NS412 73: 27.S35

M 244,735

3234

15,406 2, ~3IS

~O:.3 . 1. 7

58 11 .2W

377 .587 ".955

45,790 18.271

4 946 16 .527

27I'iii 7.155

13 176 10072

368"965 2g : 66:.74

M82

14,52U9 2,101

553 600

13713 11501

17,832.707 5,406 .633 3,BV,M $89 .8115 1 .57112" 595.691 432,3111) 215.08

10,384 410 193 -

12 .923 3.09, 3 2

1 -

1 7 76~1

303,927 156,306

146:0

3 . 69

122 .469 14,901 1,99 5

175,063 ID6.507 815

3 .584 75 70

553 .213 130,439 9

1301 7

450.538 15S,559 137,254 136.912

25.880 20,824 2 .008 -

13,263 8M0 SO

3,526.697 908 .253 712 .058

227S 6.11 2~

1

~1:t d'4

0'26:4"574 SO : 73 2

467.910 187 .413 129,744

439~908 98,983 85059

832.772 S2,324 26%4

W.755 Is 43

2,711It S:= N~' :4113 qglt 27 '~ 7.0

27

96,790 3.604 3.611

29 .812 US 217

1 345 405 43 552 260

12,342

-

3 .Ul

-

. , . -

86

31)3~0"'6 11 S 7SO .421 41S11

673 .297 .:72. 6

3 S'eZ ~380 .~W92 1.55a.120 1,412 .250 1 9

343,1 230,917 1824 .210 -

654,725 54,422 4 .929 31 .770

.0771 11 :21.5 374 2S e :Z 116IX O 1154,M

24 .769

1 .2113.882 635 .820 12125 6

.77'6

2. - 22'

11,370 92 65 -

1 395 711 .269 51 .242

929.304 162,040 154.84,1 35 .050

11 ~ :315 690 187 -

196 98 86 21

339 .602 21 872 7.363 3.805

83,118

1

4 66 136 -

403 .449 :46 US 63A59 8.987

188,962 50:125 21,452 3,379

2..OOS 79.721 147,497 -

7,103,225 320ASS TO.7" 40,581 11~:227

le W9 ':6 1 - IN 27 .6~1 W26,103 44 37

319210 M .098 436

226,Ng 113,991 187

23.QO 483 83

86 37.2571 32,806 89 12 .8

78 17

7 -

65.M2 2,476 2365 -

2.247.021 808.756 520,549 76,5111

11 186', 226

It -f

&

'06 1

:679'5 2.ON 2 67 63 4

16,953 3 ,2,511 2*131 626,277 223:'15 OA44 35,044 la .465

314 .797

...71 1It:717 ~:171

210 242 14 .176 76 72 -

14 .736 W 9

D87:111 . 4119 6 .3 141'4:114 .~ 27 ; W

224

186816 150 .1162 150,652

62:911 150,8111 150.852

3.W S

-276.619

-

~ : ~

6

z

26

Table tor Shathe hot ."lan W16 : 1, - 551 I 613 4,703 .92S 706.308 409,728 62,207 862 3.1:.l 11:

2'S 7 .2S7 '3it:O

610 S

; .2:., ,S SO

226 .016 21 6 1

.12

.473 83 7:.I~ .7 9

253,610 75:4521 .7 MEN 214 .'.803 .I'S -

422,9" 82,623 1,324.9ag 164 .126 33.665 27 .692

Alcohol Its.

Distilled spirit. h...

Reeb .

0-.

. fires . oe-,

..

.

I. lion tiontl Onnin

(14) (15) 116 )

3,103,140 111,3211 15 007 272

213 .953 ,IN 2.53 7

61 "2 N

- - 19, 3

a

7 :

490

369 6~ 1

699

228

432 3S`3

7

129 .614- 2~7 2

- 32

1950 15 43

- N

S .Im 1 .944

Bg W2 31

1 608 12013'2"6 Sel 4M

84310 353 338

26:257 1 22 185

7O,Ojj

j7I 1.02,1

13.425 51 287

147 72

209

24 236

12 6"

4 so 19 670

5 1

"

206 U - 'a ~7111 7 Tlil 2,502

182 .785 lMe I' s

10 .324 165 670

144.111' 3 131 121 4

242.6 43 1.

619,755 1 .373 128

336.726 - SO

9.00, 3,175 2 .855

- -

118,410 635 142

- 187

- - 65

2 .657 96 789

- - 136

1 53,303 989 381

17 .7U 128 20,

45 .886 1,327 283

20,275 0 1,917

612 1 68

41: 785 5 6~41

- -

19,60 25

2272

448374 :

-

425

187

-3 A09

73

93

1,594 2.820

- 4 1

1 .971 3 805 -

11 1 71

IN .U6 155 899

- - 192

16.736 38

- - '97'2

311, 2.589 1,474 SA99

150.4 6 22 328

'50.822 28

822 28

z:

424 .135

T2:29

13,

212, ' ."09;W85

4.7

1,629

1 .171

1.314

5

1,758

1 :032

222 3

11089 -

794 58

1 .070 14
120

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

areas-Continued (in thousands of dollars )

lannemad -.W hIglome, dl.'H--.

Shia. add Wher .-., fSaime.

=

sentedby .1=1 .1d..

iedi .pened

handiffienSeittivithownteboadda

of bi

United She's, total a',Allantio Region . . .

1, U Beeted Zme) 1,,n,t,, s . . . . . . . . . . . .

. . . . .

. . . . . . . . . . I M theach,ser)I I ~- - -

n i Snedaty, (Sea (~) lost. . . . . . . - - uffalo . . . . . . . . . . B . . . (See IC) below) int

B

'I I

-. I . . . . . . . . . . .

.hi . . . . Manhattan . . . . . . . . . . Sea be ~".* Is, hit ftd...Uth =e;

Pre,hoence Rhode Island) M ld~adianlic R .

:

Ballah *1'17 :~l (Me;ybind & D C) .h.- . .. .

Nmed,. .. . .. . .. . . (Nm, Joh , . . . . . P=I,p,l,a p :. : : : : . : : 1100 1 Sas :~ :

. . . . . . .

I'D2.2iVe )

Sohninshairt Region . . . . . .. : : : : : : : : :

Atlanta (Geong .al . . . . . . . . .. . .. . . . . . . .

. . . . . . .

Ghaarenbodo . . . . . . . . . (Nedh Centime

Jwkwn , . . . . . . . . . . . (Mildielloo) -

jacksomIj - , ~ . . . . . . (Flonads) . . . . . . . .

Naeft.110". . . . . . .

. . . (Timmese,e),

1

0 . . . . . Ce,natand : : ~ : . . . . . . . . . . (Sea (d) beld.) Is Damod . . . . .

. . . . IM-pt) . . .

. . ..

Indian".

Lo,al . : : : : : : : : : !"' K.m.ky) .. . .. . .. .. . ..

Peakerstang . . . .. . .. . (wee Vi'gen') . .. . .. Whinnat Region . . .. . ..

Aberdaan I W.) . . .. . .. Sao ~Ib) below) . . .. I .. . ..

M=it~ F ~!Khdd,Diikot.)

as

indiddite

Omaha . . . . . . . . . . . . . IN.bA=l . : : . . . . . . . . . .

St . 1-01 . . . . . . . . I '' . . . : : : :

St . Ses

Sb`:tn:LAt Region . . . . . . . . . . . . . . . .

Ab (~ M

Oneyedna : : : : : : : : : : I n . . . . . . . . . . . . .

Dal . . . below) 0.. . . . . . . . . . . . . . . colmsei . . . .

Me Rot:s . . . . . . . . . . (Ankeset) Ne, Old='C'~ :- : : !=)

Wastes, .'K .. . . . . . . . Wine- R

And. q Boise _. . . . . . . . . . . . (IdWho) . . .. . .. .

Holan. .. . . . . . . . .. . . (M--) HodowlU ~H-63

lp . . .. . . . . . IS" ( AnIons) 1 . . . . .

pintliand 00) . A- . . . 1Nindets, ",1 Safi Uke city . . . . . . him) . . . . . . . .

San Frand.. . . . . . . IS . (a) beflow)

Seats. I . . . . . . . . . . . . 'Widaha~im)

Inhernathadat 0"Ic" 11 1 OP, p- r1i . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . u Othe . . . . . . . . . . . . . . . . millstribubed:

Foosso W dp- I . . . .. . .. . . . .

. I -an," Gasoline Thenalemidt" . III ~ &

. .. . . . . . Withheld Was W Faidere tampoyan ;

cleanng - I I. E . .. A. - aphabon 1-1 and dit-Aw I- shot

Earned Woom. Chakil

b~ C liften . . . . . . . . . . . . .

III:i is . . . . . . . . .

Now Y k . . . . . . . . . . . .

d) On.

1.) Pammimin, . . . . . .

(t) T ans . . . . . . . . . . . . . . .

Wines. condl,ii, anti bass

by CusTotal 'ans)

('s) ('9)

Allithett behe"onalneadi

Odoup.-

U-1

0-al

(20) (21)

1110,676 27,10 152.673

34.142 11,562 22.5541

1 S71 17132

2 2,157 Be

804

2~=

18 .488

694

- 67

9 .588 9,405 181 - 10

'21 1

9.321 3.

31663 31654 5

2,722 1,072.5539

1'08141 13

1,840 '

.62

9

5 .553 689

52

3923~

4,387I

4.778

1 .S22

2.W124 267I

I

7,ZZ4

5,293N

3

339I

1,258

2975

2055Be 1 .251 ~

223

375I

3

14

117,595 3,11,515 15

2

2

6 19

5.002 1,31 7

9

149

1

S7 S

49 373-

2

2.345

- -

i'WI

2,4S4 2 .207

1 .056 7.3 1,396 7N

257

-

2,&13 4,3112

1'9~; 3.34728

2 -

324 12

2 - - 74 295 2

1,3T2 445

66 1 .0 -71 2

7

1

I

-

374 31 1

-

114.4ill

3,657

-

105 29

111 .672 1,197 110 .451 W9 365 301

I

z

rebels W Seashe not Wonan boe;

116,674 2515 114:1.1 .7

5 .298 TM 3

31 .053 405 21,639

2 .386 1 :058 305

1 .005 1,093

I'mo I .DTI 2

Total

(22 )

M 1.390,497 M 129,170 2 Q

5 33 1 6,610 1 10

4 205 4

7.174 i 706 113 SIB i 8:490

1 "74 M.960

IN R.487

2 M.509 1 1 13909

2 23:920

2

14' 179,M 14 36.07

3 - 19 37 3~ 43,260

94 8i 5980 W :943

50 144S'9 : I .1

13 - 24 61a.684 1 0

1 Is= 1 74

to

'Z06

8 1 .904 4n

3 211 0

1 4. 70 2 SI"'411 Z

1 ..3 3 219 227 3

185 41,"l7

22 67.6110

2 113,80

2

25 14.451

10 181,613 15 95 I IQ

2

1 177 2 19

1, 1 NO

289 2,436%9

15 5.61113 1 3

21 2422 52 437 .299

I

-

5'21

9

222

206

-

3495057 55:815 170498 29:n2

Beer Wa s

(I.

=1 = ad

by Cus- Iddi D-ii

OdouHanel

i

(23~ (24) 125)

22,611 1,372.753 2,233 13.1197 114,911 402

- 4

33 6,160 443- I107

67,122 831

3 6

7,636- 1 328 69

111 778 28

1

1,437 327

1,437 500 31 68 4W 37 56:494 138 2 7.

23:834 862

m InJT2 531

- 36,904 53

45 7

'37

43,172 n

- -

14

948 58 .8 3 - 38,8"3 99

1 .454 13 42B1 32121

-

20 21 460'. 62

.235 "11

1 "4:'506 515

- -

74

427 311733 754

- - 27

340 1,536 2B

- 413 61

2 1

70 2M .993 07

- 4007 22 at : '96 '7 Si" 0

21,2 9 DO

-

993 24632 :099 '99 72620

l 40,5Z 2433

1 87~5;2 91.

- 113.767 3'

- -

25 129 4,246

- 1 'Z95 3,7211 1157.641 253

1 173 1

- 1.

.3 - 27 I

"906 2

2,536 71 83548

'3

- 2.

45 5,631 12

'11 21 '2' 52

- 3- M.563 62 .

162 1!

-

z

- -

3.348 196,422

340 33 .735

7'636 8~7 :'114

20 5

- 70,326 854 28 .066

-

13747

1~172 341

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

arees-Confinued (in thousands of dollars)

Intarnal ne,himw regime. districts.

St aa~ and other areas' (Stabi

m=sIded by single, districts

md'edied in pimentheeiii basis

foroftmw Seat. ho,ah at beled .

d, stee

robe

M

United! Staress, total . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . 2.398,601

Nen'th-Atlentic Region . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 2.151

Albany . . . . . . . . .. . 100

~Aai 10 on'-` .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

260

=n .

9

. . . . . . B .,milton

amend - ~C.

Manhattan So. lot pons-th ~M Hab"Ishle) . . . . . .. . .. . Pdn Rh d

-

292

1,461l

. . . . . . . . . . . .. . . . . . . . . . . . . o e s) Mid-Allimll . i n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 714,011121 Ball-ohel . . . . . . . .. . . 'aw . .. . . . . . . . . . . . . . . 2.

Nih.ahi ~ . . . . . . . . . . . . . . . . . . . . . . . . . .901

phdacelph" .-. . . . . . ~r- (a) below) . . . . . . .. . . . . . . . . . . . . 12. 88 P"sWrgh, . . . an below) . . . . . . . . . . . .

Zhlohd- . . . .

. IS 701 .1 SdV1= I .. . . . . . . . Oslawahe) "Wh, . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1 .217,0777

Atlanta . . . . . . . . .. . .. . Oilo,gui) . . . . 12,292

B =m . . . . . . . . IS1101.b'am . . . . 3,240

CZ . . . . . . . . . . . . . . . . . . . . . . . . . .. . h Ceadme) . . . . . . . 1 0 -. . . . . . . . . :

Ghlesso- ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . Zrth Canfina) 1,196,463 J.,k .h . . .

.

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

Mississippi )

Jaclsbn~lle . . . . . . . ~Floh,:J,) . . . . 4 .527 Na-110 . .. . .. . . . . . . . . . . . . . -, Tenn.... ) central R gi- . . . . . . . . . . . .. . . . .. . . . . . . . . . . 4. .54167

Q..hn :b- . . . . . . . . .. I S

C ..land . . . . . . . . . . . . . ~~d~ ~ . -655

D

Ind-P

. on . .

. is

.. .

.

.

.

.

.

.

.

.

.

.

. .

.

.

.

.

. .

. . . - Indian

Michigan)

.) . . . . . . . . . . . .

. . . . . . . 33

L-, .,H. . . . . . . mt.") . . . . . . .

.;W,g

i.

.. . .

.

.

. .

. .

.

. .

.

.

.

.

.

.

.

.

.

.

.

. . . . P'set Vagmia) . . . . . . . . . . . . . . . . . . . . I M=abithessin ; . . . . . . . . . . . . . . . . . . . . . . . 2113a

. . . 11 .1 .1 . . . . . . . (S-th Dakota) . . . . . . . . . . . . . . . . . . . . . -

Ch0 hC ... . . . . . . .. . . . . . . . . . . . . . (See (b) delo,) . . . . . . . . . ... . . . . . . 20

had . . . .. . . . . . . Fang.

M,I,a, ~aa : : : : : : : :, : ~ - - ~ : . . . I

Omaha - . . . . . . . .. . . . . .

. otes

St . L.. . . . . . . . . . . . . . . . . . . .

st~ Pa.] . . . . . . . . . . . . . . . .. . . M :n=~a)

Sionngbal p IS- (b) below) .. . .. . . . . . . . . . .

o0theanallegion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AlW . . . . . . . .. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .

A.V"~` . . . . . . . . . . . . .. . .. . .. .

Cheyenne . . . . . . . . . . . . . .. . . :: : : : : : : ~Wy:l D

Laos Plock New Orl sen. . . . . . . . . . . . . . . . . .. .. . . . . .

19

-

223

-

n2

7

7-

1 Owshomach, -

%cm,. . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . Kamee . . . -

W=Rglbn . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . - . . . . . . . . . .. . - . . . . . . . . . . . . . . . 12!

All Alaska) . . . . . . . . . . . . . .. Sense . ~ld W) ~ . . . . . . . . . . . . .. . .. He .. Montana)A

H"

L

Phdah . Ar!en

.1. . . . .

.

.

. .

.

.

.

.

.

.

.

.

.

.

.

.

.

. .

.

.

.

.

.

. . . . 96 -whi) 2

ed

P

Ratio

.Mand 2

. . . . . . . . . . . . . . . . . .. . . . . (Nin,ad,) . . . . . . .

S Lak City . . . . . . . . . . . . . . . . . . . . . .. . . -

So Fill- . . . . . . . . . thitay.1 . . . . . . . . . . . . . . 21 di . .. . . (W ..hnhqmn) Oil W basement Oper . on . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . 12,0347 P,edo Few 12.M7

O'n . .. . .. . . . . . . . . . . . . -

Undistrinded :

Feehwel an, oobosd,'~- . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. GA-m.' III I ado. n

FICA o, 9

T, stemed to Go-mmorn of G ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .

- Fl-.I. :-p% ees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

-==n

to . I.

his I'

"t-utbon hail and o-A,r Fonce and Nan,, .-. . . . . .. . . . . . . . . . . .

P-dannal Elsonon Fecll~ . . . . .

Eam . Incom. Cradftl~ . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . . . . . . .

Total . her Siameas mal Wathem ilbown,

(a) Caldohn, . . . .

(b) Illinois . . . : : : : : " ~ New York .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d ON. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .

TPXasnnly~ . . . . . . . . . . . . . . .

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

117 26 3

1,599 655 12.190

2M

Tolotacco team

cignead.

W)

2.357,51 9

132

-

1

9

cighns

(20)

37.12a

397

-

- 29 2

122

701 .456

3l

701,062

1 .20GAT2 11,389

-

10 1 .'N,914

69

449,455-

5787

-

12.251

8

12.188I

5 4

1i 903

3.24 0

-

1.005

4.115

3.0332

653

3MIS

Ile1111.

9

-

3

5

213

2 ;-3

1 4

13

II,W7 1 1.11,1 7

-

133

'04 653 12 .1839

21

121

W

3,8541 1,62212

2S 9

-

1,35 1

3 0

24486

48

I Aid

z

104 26 0

1,3632

-

7
122

Table 1-4nternal revenue collections by sources and by internal revenue regions, districts, States, and other

areas-Continued (in thousands of dollars )

In,,nealhinnuntateganni .ohdrict. .S .,... . it

doth ..,so.'(Stanknintphinitintedby .1hight

anum,inalcithedin parenthese . ; ushibi tin

Total

(30)

6,0511.662

United States . --u-I 39S.452 Nlon!~Albinfi. Region . . . .S~aa 4 .079 EulanZal~ . . . . . . . 5,905

50.97 6

1 :8 n465

270 C) o"-)

= on:

: 1681 . . . . . . . (Ghn ..I .t) . . . . . . .

4410'I4

klitelukeen . .

. 2an:.6 ,11 PPa,uhhhouth p JRhode

bund) 9.

I

.,d.eC- 766.3DO loWlentle Region

Baltunont'

Nahiahk Nis

.. . .

. 63

'03 :7,27 P ki. Jls . . .

264 .Wl

Sea I:~ be 28S.7a P,t=gh .o.

IS.

h ph'

Rwh,ond . .

- "1 23,530

.

Minunglan

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

I .Q4 S

outhes 35

. Region *Ihal 193,0100

Allahla 21

.MO

so . .M2

ca. (South Calail., 4 hail :"754'

Gninuesokaxo o "

. . . . 1 . .. . .. . .. . . .

147 IFIwida) i* 24.025 Tan n

7

anu Soi; (d) bal"j : : : : : : : : 2 2.

As

1 6 8 a

Cie I'"

CInionnabo . . . . . .

. 75:96

!~~inl)'- ~ .I. that Won 3528,6491 4

Indianapolis 102,921 'Oil an

=,fie . . . . . . .

4,959 ab-19 . . . (W-M Mingo.) 775,1111 MW,,,t Region

~6.th pakota) Abondown 4.7

P23 390 thiu-) W,ma,

'n' "a, mnini s . . . . .

. 6.584

Fingo, kes- Ilan'[)-"a! 79,m6 M.W.. Wntoons, 0 Ito

0-ha . . . . . . (Naba.ka) - 78 :239

SI . Loui . . . . . . . .

. . . . . amn,sou'l) 62 .540

Son Ikunhe,ott St l. Paul. 4.601

S. ngle,kI Sea III) bi,kn; 991 .5311

Insist Region 5 .961

Ab-.w 1 .021S385 Ausah- a Sao no C1""he 327 Sea 36.51,

. 7 .

Dan,.

IC 78 k=~ 3.676

Lad.R .ck

Aal

N- in 37 011kninni (Le.,anne) . . ..

. .. . ..

. ,37:2,74 Oklahohn Chy

a . . . .

. Ildahonuil B.,SS7

WiChus Kanses).

"1 .394 WesternAglo 71 AmhomgG .. . .. . . . . . (Alaska) . . . . . . .

Boop, . . . . .. . .. . .. . . (Idaho) 1 . 3,190

.340

Helena (M-lains) 597 Hanatul.

.

. . . . . . .

. . . . (H-with) 270,004

L .A, aa : :~ : : :, :~ se to I--) 7

.~

Phatier

IS "1 1 38 910

San Lake (h, S . . . . . . . (Utah)

. al * n F.. . . . . . . . (Sao (tu to OW;

,a he.

losofifflannenjoinalopenall a,

Puedo RIW . . . .

. -

Can. . . . . . . . . . . . .

.

Undistributed:

Fedanal .. d-dit

Gusene.hu odung G I, and I-eass FICA onedils"

Thahs;anned 'to mwom'ehl .1 Gutun . . . . . . . .

Withhold takes of Fedenal MPIOYOOS

Cl=ooeun,, " EX030 bluel and oit-A, Font, and

P,Nin,,,

saidenatil Elwan Fnndl~ . . . . . . . . .. . .

Elened C,bdhll~ - -

b) In,n ., ,

I N- Ya,k .

it) On.

I.) P=.n

1) T

,

2.t32 4

144.77.

86.106

41 9

419-

61,, 50 99a :7.

170455:"748a

5&1279

1,405.967

Manut... ."' . inutes, t ... .

Ily Tires

(,no yter P ht In Me r

hubbe at

-

I

r), chunk.l.

L bodle., .b,i-- I. .. I -uhatt

ling oil . and thould ..Pa.. and

Gasoline ..

rubbish, --it- 0".%

Ranalle". ..caut ...

NConne.n.fill

,a ..Ron- .11allan

nal,cud fuel

Wild' other

a .

In Total ginuou l `--, I-

(31) 132) (33) (35) (m) (37) (311)

_j~j2t?,077 100,9 :19 192,95 75 7 7 546:TM 97SSS 480,602 5

139,030 574 B2,028 1 32 am 074

36N a 68 305 94 1 :599

'1.791 742 4al 2

44,748 202 6 3 S 1~' 19 57 .3344S 4 1 on

1 441 3 . 1

'04

10 2

22:3'33' 3 jS5 21 173 2:3 ' 14.W"2'

1,572 5 5 7 170 67a

34 474 3 115 41$w 3369

. '066 11 :~17

256 7 231 INS' 2 10.014 3,692 8'

1, 51 too 553

8, 13 N 118

957 6,363

2.2

4,75 a"M

53A"

570,943 20.6ffi

477 46 1,11 6 3 .691

'0':", 3.793 10,189 3,13 1 8 .516 '76' 5, 2 .615

164 .496 6 .006 23,297 S.1 4 '05 Iii 7 .am

SO I

Ix 12,~5

2SILOS4 10"toll 3,856 11

113 8',01 1 20 .805 2 Sal 1 :5 7

1,247 12 1 4

137 S :470 1 .673 555 16,384 24 3,S02 17

24 .28 B'88855 78

12 a I 1 0 1 5,171'~ .992 27 60 2.147 6 .001 '184

7 :410 2,1 30 39 3,109

513 3

:807

'24

a,5 2 3 3,779 148 10W

7 .72 2 0,24 .694 2

.496

1

11,549 194 2 5384

0

.

2

1

20.181 93 580 2,942 1 7 0,769 5

423429 6,187 4607~nS 302,74S 2.201 5

18 324 242 952 2,375 70 '4:T

180:490 2.wl 444.WO 23 ,,7, ~ 4,7:813~6 3 11 65I, :,.

86,957 570 7.379

37.616 35 257 16 w 121B32

6 .500 2 .924 555 2. 30 16 SAU

3 121 9 61 :41 5 .642 35 242 .0

570~717 10 .9U 14.032 1Waw 15.70

5 9 15 48 1 1 2,1151 24'

6 .211 26,368 308 .731 7.932 6,897 130~~ 8

61 8 .796 21 .466 11 5 3,M 4,700 542

39 197 7-,oa 4 1 :6111

66J41 179 472 5600 69 6 a 37

211 4.511 7 .153 316 ~6 871

51 ~:111 2,298 7 :.0 632 '6 31

1

252 2836 5,997 . :a 7 52 :416

36 .735 3 116,396 6 04 54 4,46 ~3345

119061019 48,310 "1 28 .26816 9,0323

5 .839 - 5 3

1,039 .652 32,126 2,600 3S97 112 42,948

26226 Ito 3 41 4 3,571

301 :140 43 1 .31a 643 470 26,969

3 51 40 3588 3:, 1.586 4,610

75 .124 5Da 6 1 627 3 6 628 6

n .886 374 14 3 .2 230 4588

323,672 6,721 1 .407 5.007 67 4.557

64,063 499 ISO 72,104 74 9.062

10,440 87222 573.541 13,663 28,654 135109 1

10 9 149 3 '8:1221

2.750 1 168 65 06 2

73 6 2.3925

'am .

. - 11'

1

1137 243 26 59

20 31 220,364 4 8 .6542 24 .892 15.399 4.698 6,809

'0743 tMi :311 30

4 a 70 7714 3'2 652 1,341 6,029

2,2 3 25 1 2 n

3,163 2,821 5330

.. 3::111

7~

.ti 329,145a 6,903 1,7,2 .2. 61 4.54003'

9.78 33 277 8" 297

25 379 13 1

-

It

25 37B 13 55

10,390 30)014 2

6 "

50 77

I'll, lN" I

61 7

14~10

M' 2~

70 44

104 55212

2 3

6 44

no

72 115

a1

234 '24

2

1 4

170 1354

28 312

11 706

1,623 2 41 .160

146 M4

1w

21 -589 41,

2M

3 "1

517 1,39,

204 6

829 1 2A

35 47725

1

414

22

Sit

20

222 580

a, 289

6 242

471 3."7

604 w

211 7

79 '2433

16

74 A!

21 5 300

0 1,055

27

'

1

43 2155

2AN a .520

141 9 8

5 W 3,828

7 95

332 1,192

314 750

218 9230

340 a

305 1,013

249 365

2 .537 3 1 .700

46 2

to12 17

5 98

38

6 1,27854

23Q4 3277

M 3

109 205

92 85

659 772

229 183

2

Total.

to, St.. net a .- tionna

549.523 121,555 26618 19 6 5 802 5, 55,805

345.467 7.935 6:951 3 a 7 .258566 32,76s

321 64.787 9.687 23 '

23 452 50

a . 19,236 "M

. j 49:30' :N9 1,4"2 32,40212

433,190 16,414

1,348,758 27 153 '1 918 '2, 582 6%917 40,169 3,

1,299 2,050

357 38

363 1 .680

186 919

304 835

868 15.a .

12 3

Table I .-Internal revenue'collections by sources and by internal revenue regions, districts, States, and other areas-Continued (In thousands of dollars )

Inteseal manue halglons. alls,11108, Shaten, and

itateher .... (Sakeninear-allb single I

oftlouthul c.IW Inpinletainuis;y1ofthif.1

.1herSusta .lihisinudboachhot.til .)

United St.-. '0aI . . . . .

Nonh,Atuntlo Region ..

Albany . .. . . . (gee (c) b,lo,) . . . . . . . .

=0 (Ms.)

h au l'o )) ."1 Wooklyn :: : See to

Buffalo .. . .. . ..

. . (San (C) below) . . . . . .

aud,NtT . . . . . . (vw,o,t), . . .. .. . . . . . . .

Hankoh, . . . . ..

. . . Cnnedh,ut) .

Finhhh "Inh.lon, ..

It . Sao (c) bll*

P-0n . . . . . . . . . (Rhode Wanda . . . . . . .. .

Illatuanti, Region . . . . . . . . . . . . . . . . . .

.. . . . .

is hentud

.

. . . . . . . (Maland & D. ) .

. . .. .

Plulachuphut ""a')

. .

. .

. .

. . .

d (Sao (0) In

S

w,j,,ngto, 0.11a

outhe..

Atlanta (G-,Q,.) . . . . . . . . . .

Ehh, Alabanna) Cok=nn . . . .. .

. Ca

. . . .1 .1 .1 G,e,nsb a .. . .

. . . . .

on -,,,p,)

Ronda) .

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

N,sh,fle" . . . . . . . . . . . (Tennessee) . . . . . . . . . .

Cananal Anion . . . . . . . . . .

. . . . . .. . .

C,m,nn,t . . . . . . . (See (d) below)

0-1.nd . (Sao W~ txh-~ . . . . . . .

D.11.11 (%I,Ch,g,n)

Indiantipol

.. . . . . . . . . Indiana) . . . . . . . . . . . .

Lo,-11, (Kentucky)

-k Lung (W..t V,,,n, .) . . . . .

at it a

. IS0,11, Dakota) . . . .

Ch.~kr-in Sao (b) buo.) . . . .. . .

Feis~ ones I NI%~,)b_k .

Kh.. .k de . . . .

. .

. (Wis.na,n)-S)

Canons . . . . . .

IM . . . . . .

S1. Lou,

S! Paul . . . . .. . ..

. .. (Mu,nealt')

S Spnegfield , (San (b) beIDW) . . . . . . .

outathest Regid . n . . . . . .

Albuq.e,qle., I"Nw,lle an I) o:, . . . . .

A ..IInin

DC.1;.YS hhe - ist,

'~'l L, .. A.k IAC=`

Neinuin . Oduan . in. Cn, s _ ILounh .,

Oklah

.'aa

(K.n.,t). . .

Western Region

aAnin

."

. Aull,la)

Oise

H .I .na

L A "Z"; below)

P" ' hd`."Z I.ta0"~on

Raho . .. JN . .d.) . . . . . . . . .

.

Salt Lake City (Utah) F . . . .

. .

San ninoulloal . . . (Sao (a) behi-i . . . . . . . . .

Seattle ., . . . . . . . . . . (Washington) . . . . . . . . .

ofin anornoorka 0-inionO . . . . . . . . .. . . . .

XeMo - '" Ah.

Chhe . . . . . . . . _ .. . . . . . . .

. .

Undl.bibined:

Feddent! to. deacona I

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

Goacu;ne . lubn,,aing W, and o,wss FICA Chadnit"

Tnun e,,d to Gmenreent of Gnnn

Withheld ta,,s offesainal mployeas

CIO, a%han V acconnt Ina , E,ase I—

and 'd-Air Fonce and

N-y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pi

.sidindutl E1= Fund'~ . . . I . . . . . . : : ~ : .

earned hoonhe Wds'~ _ . . . . . . . . . . . .

1.b~ C-10a n

shnot. . . . . . . . . . . . . .

Icd~ Ne, York

Ohio _ ._ . ~ . _

j,)T1.*.h",y1, na .. . . .. . . . . .

I) sk

Retailer' .

Continued

Dissel and

Itioochill ene. ,

fuel. oth . Total

(39) (40)

40,190 a

19,772 6

1,47 2 -

1 .5n

31 .881

.309

4,95 5

625

2,859

1,517 a

14 -

47 1

47, 3,455

6 .5705

39

18.121

6 .098

850

51,679

7,295

5,597

2.576

9,291

31513

13.475

9,931

56,20 1

3,787

1111160

10,976

12,029

9 .072

2 .177

76,039

21030

25,481

6 .374

0 649

.010

4~107

191 .0375

24

SO87

108.002

3.638

38,583

3~,102

25,.6

3 .746

6 .179

15310 ,239

8,469

60 .985

740

261186

2 . 9

'82

0 1119

6,296

5,430

.959

5.153

33.540

3.885

$46

5 4

'312Z

9,25 3

21,946

X .2135

6"'On

(41 )

31,65.171

478,836

4,219

3 .242

05 .754

14&712

1 t,91 7

88,

31 .800

193 .158

1,260

893

205 .7n

74 a

1

14

72S

75,190

16,591

44:692

2 19 0

62B.376

261,609

107.42 9

5206

42,6W

3 .392

180,127

27~980

256,494

30 .896

75 .313

82 .866

48302

9 .2,12

9 .674

V3 .954

"917

303 .547

10.546

2,191

44,550

75617

297,15 8

71 .960

16,468

M9.399

1 .M8

41 .8M

1,14 5

70055

91 498

5 .3U

8 :17,7

a

11,367 8

445,070

11 ~ 150

2248

2 :163

'11~115 42

Mo

1263

8416

6.8w

2,06 9

185.029

57SGO

7.308

T29

Totals to, States not When abo,n,

107213

4VI2752

77,718

7

2

23J22

17

37,281

15.25 1

119

1 131

208

94.010

4 .395

33

Iut

4 .067

70 .872

239

97

441

103

3 .508

2,161

3,45~

3452

68.29 6

6

(45)

55,147

6.23 2

3

3

U

6.075

IS

14

62

I

14

817

568

43

153

11

4 2

-

91055 10,739

1,393 338

-

2 2.

32 46 1

- 119

6,869 5.166 -12

761 4624 -

42 2,159 -2

1 1 2

- 491

20

2, 2

1 .612

I

- 5

2 - 2

14,092 20 04 6

-

0.349 6 .647

7 1

IN

1 154

2

2.526 11.574

3.2t23 2 .38a

9

2.256 21 Still

7

5M 6S - 2

7 .067

6 .656

6 .158

504

163

205 4

lA75

- 1

1,362 7

104

5 t

521 1

o

131 23165

1 18 -

9'aa152 11,458 3

3 1.998 -

-

7

15 1

98 55 3

6 .299 142

1 '36

379

26

- 3

2 .671 2.353

660 SO

2,Ug5

2484

5 82 .381 6.970

I SNN,914, 181,675 8,353

a 355=6 147,207 135 .410 19,252

106,209 86 .956 1,129 1

.1102 09 .10 .65 5

11 "am 19.950 60403 2.014

hil-lunnioul, ..Ca. .

Telephone Traniteer .

a d as anyp~ union of inlinn Ui.n. a.

: Anon of a

~-Itw panson. .1, Ir ... I propai

ii-kne . by.1, facilities by air Sugle

(42) (43) (44)

1 .703 .778 957,251

255,023 136,565 l9 .MI

2.562 10 6

1 .8 .2 13 5

78,657 796 6

40 130.549 6.247

6.904 258 -

196 61

26.881 205 2

137.701 4 .497 13 .005

240 24

- 33

2aa,53 . 26.Q5 1 .019

6392t9 25380 614

0 .724 345 394

60,524 342 5

8 .971 143

39 .095 167

2 48

2834411 277,520

IM146 126,393

102 .55,1 1 5

2,285 132

21 .732 10 3N

Su 73

25.543 131.256

6.055 9.256

201,982 2.00 1

24,025 702

62,931 427

62.768 5DO

38,653 IS

SAM 31

8 .023 45

395 .907 339MI

769 8

86470 181 400

5,263 99

900

35,554 702

72 .497 51

166 .452

5 .859

12,144

103,374 '95

2,001

169

17.9Q

71,006

IS~

21

1'

6.524"5

270,210

3,567

203

48 4

16,100

36,230

11 ,

1 .973

162

16 9

163,4-

17,74!

2

3

-

I

2

3

2

1
12 4

Table 1-4nternal revenue collections by sources and by internal revenue regions, districts, States, and other

areas-Continued (in thousands of dollars)

Inhinsminne-negion . dildricl . SI.W..W

bla!W~Wnglls

.1serfislantlino-Itiont-Whibia)

No United State,, tbW . . . . . . . . . . . . . .

n .Affs .0 . Rollins,, . . ~

Albany (C) belo.) . - ,

eg,lbs ne) . . . . . . . .

to MaloaChISCHH)

ly 11- ~C.~ lost *1

Oak, Sao b.l..) . . . . . . . .

~Vln_l) . . . . .

~,,Itonll

Ma,hallal IHOA) . . . . . . . .

ponamlin 'No.'H's 'm Fish, a) . . . . . . .

P .,dan.. . . . . . .

. (Rn.. Wind) . Mi . . . . .

d'AIW.I. 11.1lon . . . . . . . . . . . . . . . .

awh-. . . . . . . . . . . (M,,yland It D .6

No-*. . . . . . . . . . . . . (N.. Jenny) ,,

PHA,dolllflia p . . . . . . . . . fSft(e)beiow)

Igh-. . . . . . . . (Sm (a) below)

oh' ~V 191H.). . . . . . . . . . -

Z n,"n`g'b 1 DdCann

Sootiness, Raigio . . . . . . . . . . . . . . . . . .

albinta ,. . . . . . . . .. . (Go,gia) . . . . 6 . . .

C-ing- is~ (Alabaa) Cl . . . . . . . . .

mb,& . . . . . . . . . . So,th anol.,a )

Glean- . . . . . (NWh Calnolh ..) . . . . . . .

Jac ~M,slsasqop~ . . . .

1aCk' Nashville .'n4a6 Flond.) . . . . . . .

. (Tennewee)

central Rgion . . . . . . . . .

0 nnat .. . . . . . . . . . . (StIe (d) belol)

Clinnsitind . . ~ . . . . . . (Saa (d) balb-)

Iln.il . . . . . . .. . _ (KcHigar,)

Indianapolis . . . . .

. . . . (Indiana)

LiIiiianils . . . . . . . . . (Kent,cky)

P,,ke,sb,, .gi .. . . . . . . . (West V,,pn,aj

id

" '~! " . . . . . . . : . . .:

a ~S- ~b) b.l..)

D . . . . . . . . .

Flap . . . . . .. . . . . . (Nonh Dakota)

M,I,auk w

Onions

. . . . . . . . .

asial)

St. L-. . . . . . . . . . .. . (0-6) . . . . : : : i

S Si Paul . . . .. . . . . . (M,-) . . . . 1 .

So gl,eldl . . .. . . . (Sao (b) below)

bothaned Reel.. . . . . . . . . . . . . . . . . . . . .

AIWq,eoUo 001 . . .

~Ion . . .

. N Z (M1) balb.)

C'eyenne _V)

Do 1 . ~ws",, (1) below)

In- ~C I.,ado)

Little Ak. ..,) . . . . . . . . .

.

N w Odeam . . . . (LmiAana)

Okel'anono, city (Ok1aH,sna)

jKlinsas)

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

.1Z r g a e

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

He-. . . . . . . . . . . (M.m..) . . . .

Lbe Wow) '"'oulue, a (~SH"-( aii) . . . . . . . . .

Pon,at d . . . . . . . . . . . (Oegm) . . . . . . .

~N do)

Sell L . Ui`ah) . . . . . . . . .

San From=- . _ . . (See(tibelow)

S it.

plasto Film . . ., . . .. . . . . . . . . .

OHnn- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Until. ib~:

Faidenal - da,ba,is III .. . .. . .

Gasoline, lubn cie

nw," Tie . MI'WG-rnen, of H, "I . and a Ge.53 FI,C

wthhold la- of Fademl mployess, Cleaning a-I f

., E..ae obes-

-atm III N oand o,l-A,r Fonos and

P'a s ids W EieosionF,ndll

Einnedl I~e entoft,. .. . .. . . . . . . . . . . . . . . . . .

(,j C,hfmia . . .

~~b~ It . . . . ...

Nini, York . .. . . . . .

(d) On. . . . . . . . . . . . .

Plann"a . . . . . . .

Te,as .. . . . . . . . . .

Coin. Use .. .on I.I.,nd'a'tionats

liberal" h .91naily

Ux.!~'Ill -.14:

0 .lio-W . in ' ..g .r. nilildint i.neft incom Othin

Und.. .I.

flat

U s

(47) (.0) (49) (50) (51) (52) 153) (m)

6.561 776 6,632

63 9 23

- - 1:

36 -

20

'14'

2 39

7 7

-

6

is 304

4

1

357 10 14

8 1 '4

3 1

14

45 7

31 108

1 2

1,713 122 601

1 9 123

4S 4

221 76

124 29 73

28 20 3

3 2 29

1 .31 8 53 217

243 1 3S 323

23 1 6

3 ; 4 4~

'5s1 2

33 56

9 13

~47 46 4248

0 3 3511

42 I1

5 7s

5 17

2 -

-

73 l7ls,

119 2

24 2

1 5 15

1 5

a 5 2 71

16 1

5 4~

19,

2 7 _8

6

49

1 16 541

7 1 ' 14

61 4

1

4

9 -

3,762 409 4 .564

12 7

1

59 18 3

63 1

18

1 4

3 D3601 99 9

119 41

1

119 237

4,229

1

325

2

226,209 22,788 79,592 44,126 313.11p

111I .92 3~256 25 .024 14.135 176mll

1 53 . 20 40 209 -24

.D92 24 4 is -ID17

IN 2,132 15,; SS13

21046 3 A 15 Ql 3325 2 3 3741e : 8

3 94 113 D.735

12 160 19

2,42 ~32 221 1 .165 2

BB12

62

36706 2.705 le :4,1 1 2 .028 54s8l

6 26 ISO 115 3

414 117 63 - .614

2 .20

1". 16

10 56 17,4 799,215

36.4895 262 1 .119 3.012 250,380

08 164 2.461 2439 5SO.275

13 172 4,75,1

4 5 1261 2 .393 2831 105 `1 a .386

4 .62293 62 42 2 4 .n5

'

1

lI24

35 e

33 .

.2 277 63,467

404

4.

36 4 .961 2.0 356.3,10 4 .

6 7 724 975 791 - 8 1 9

4 398 54 93

72 137 71 23318 21 2039

341 2.1 414 .13807 23

24

839

2 .W4 71 8 -

8 .359 1.6113 761 168 -32JB'56'

A 362 694 403 519,191

31 7 11:111 1.7''1 -14e:107

41tl 'I E 11 34 4 om

20 8 "922 7 3 - 169.8W

I Is " 7 1 5 385 -22228 02

53 35

6

7 .360 1 79 1 . "6 1 163 e.Ow

3,028 1 3 130 -4. 20

1 .397 4'1 8 35 -85,

'33

40 IN 6.606 10 .422 5.012 -173,43 1 15

81 .059 30 -1 1 7

A :117 38' 4 3 , 1.5 1 3.901 - 23 3()5

1 114 11 319 9 723 7

1 . 0 53 520

5,725' 204 1 .72 421 :s112

2 .476

1 03 1 7e 81 6

5 6 1 5

51 1 05'3 ~ 2 528 -130932

:8'9 58 3 -5.53, 7

.27'

1

3 .52 152 116 -,87

35 ,488 2,6427 1 7 .Oil 6,69 -567.625

9 2 8

3 ' I

21 .2 1

7.560 60 3.7 7 486 - 2..V

e

6 67 -5 -2.948

ell", 634 1 .688 7 9 -193493

3 :6166 304 840 27

3 .~6 92 51 73 -67,701

3047 171 3W 1 08 - W3

1 .211 356 'it 25 -26.161 4

.:12 44 -24470 152 2.4

7,95 3,99 6,166 S.n3 144,451

'13 30 a 4 -706

78 53 34 4; 4

236 6 26 '2 718

57 68 251 40 -96M

7, I .Ms 2 .11 ;2 2,7482 -30.002

1

4

2.06 2

5 00 353 1 N 1233 - 191 237,394

1 44 10, 2~111 1287 703

45 48 683

39' 609

1A 2 1 .5,14 _6O.N2

4 .2 0 266 1.0m l.DO, 8.39

604 1! 90 444

3

.660

- 4

604 17 94 143 -3863

-

Tobits to, States not ShO,an bonns

27 1 11 7.W

33 7 12

1 1

2 72 10 jisV

14 20 13 .117

49 3 ;26M

10 13 s3' 6:214

26

2.524 4,144 4.286 N ~ 5

3 sm 4~016

23

.492

2 :981

2 14.703 1 2

.057 SO 41579

3 2.936 1 we

298 75~"7 14 41 :411

1 .436 4 237 -4- 17 .32131

Table 2 .-4nternal revenue collections by sources and by quarters

(in thousands of dollars)

SoIne, of nnanu e

G ..d Will

Cop ..Iibn I-. to .-

I.dwid. .limmis end *H,pIommI t,,,, . tota l

in-. .not .0hod a. ECA 1

In- 1 . -hH .ld W FICA I

P .~lniad 's"'an-,

U-ploMent -,anc,

Estate I .. - - - -

E .Cniatelies,toW

AlCohol tainnl, tol!al

Dsi,llad so,iis

in.., b-als,

Sao, 11

Tobanc- tlle,, total

2gago ~atiasl l

Ollie, '1 11

. ... . ... 1

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

------

-----

L-at,.i; oil.

TIas ~l

. ..

Pan oi Ititol) . in- t.b.a . a,,d Tiled mbbe- ----------

MWW laNdet. Chasils. bodos . pans sno ll,ces-e, --- Onho," . . . . .

. .

.

. .

.

.

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

. . . . . . __

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

Retailer . ll .olln, total . . . . . .. . .. .. . . . .. . N-,-1a,,t,o. g,wl,.,. . . . . . . . . . . . . . . . .

Nonoo-al -ln- 1,,al ottio, I— g.-,.

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

D, . .W,A. ap .,al - 1..~

Oth, . . . . . . . . . . .

. . . . . . . . . . .

Mi ... I.n-.. ..d ..t..aA .I .nl . . . . . . . . . . . . . .

. . . . . TakHonb,, -fillOW-ter Wchlinge ss,- 1, s . .. . . .. .. .. .. .. . . .

T,ansoomat,on o p-s by d,

Us.W,nl-taond I,, I-a] la.1,1- . . . . . . . .. . . . .. .. . .. .. . . . . . T1U1n, :-al,1n 11 p,W-, b, . . . .. .. . . .. .. . . . . . . .

Cbm--9m.ng de%olcal1-1 - - - - - -

..g .a _ . , - ~ - --- - - -

Use h,q-ay oto, ah,de s

Use Im on -1 -c,aft

E-l~ total

c4l .,

U-1. ..ified -mis 1.. .

Dab-ber 31

1976

70,M.100

10 .096.808

53.901,51 7

1,617 .603

51,300,365

466 .720

516 .82 0

1,392 .192

5

4,1111

1,254 .9561

909 .64

473 7

2979 7 i it

429XI 2

416.1133

11 714

764

1,193,045

1,113.366

24 361

49,538

2.89 7

2288 3

116,284

3e 984

101631) : 11

755,051

468419

226 .869

~2 12 6 :e

el.

1 0

160

57

1 302

15.012

1 .156

.4:~123 3

415,944

Ou .n. n..d

125

Man,h 31 June 30 Satp-ba, 3 0

19n 19~ 1917

a7.137,03 115.791 .1,03

12,141.9113 24,U4,510

67.556,307 85203 1358

10.814,068

25

.855:950

56.051 .905 58.338~67 0

471 .293 4VS72

219.021 524.277

1 .53a,96o 1 .203.372

50753 2

1 :093: 1 52 4,15450'708 91 .5

1,92".236 1.334,739

7 "553 922,013

43741 42613 37

282,N2 0.113

660,249 609~260

650,818 601,426

8 .424 6 934

1 .007 901

1,467 .N5 1 .473 .067

1,076 .468 1,017.98 9

23,862 '24.932

19D .211 98.848

160.055 19948 5

17~349 31 .813

117 .646 1192 .31 3

1 .247 .160

.7.11Ste11 8.173

08,980

7

778,615 7t5,9O8

446 .921 391,747

20 852 226,283

13 .582 12,462

12 .821 40 514,159

147 263

60 77

1,938 1.971

41 3 ;3 1341 :1 1

4,7 0 A 2

S4: 1 21 96

098 11.99 8

_M9 .539 307,158

$4,437,400

12 .026.414

66 IGOA9 7

7

:'2" '0' 3e 2ee

48&

650 "18 4

1,514,9361

4,1 ;'4:"722

~1024IS .'2'04

A 5 4

47'Ts1 6

699 .6 1

688 .4053

10 6

1 .183

634 .624

.114

21 :72

2N .3730 6

232.297

25 9.0

127 .380

2.99'

7 10

117,2575

-

914,797

260:'24' 1

15 726

15 .183

- 1

1

5 .992

582

1 42 1

138 .508

12,730

2 3

12 :463

-180,05
12 6

Table 3 .-Anternal revenue collections by sources, fiscal year 1977 and comparable 12-month period for 1976

(in thousands of dollars)

Sources of nanoolue

Grand hical . .11 b .ad ars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . - * -

C.n_'i_ I.-hrilowess.rood .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . .. . .. . .. . . . . . . . . . . . . . . .

R b...,mical-istax

Imehiduill Incerm. and employ- . tans. total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . .

I . -

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

~x. not .0hld and S

E

se

withheld and FICA -~! . .

Fix line retirement, total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Un=pWynhimmenorcho, I . . . . . . . . . . . . . . .

F~xno to. ex .. . .. . .. . . . . . . . . . .. . . . . .

Gin . . . . . . . . . . . . . . . . . . . . .. . .. . -

Excise excers, total . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Alophol cones . lotal . . . . . . . . . . . . .. . .. . . . . .. . . ..

. . . . . . . . . . . . * . . . . . . . . . . . . . . . . .

Deraland reptile tnes. total _ .. . . . .. . I. . . . . . . . . .. ..

Immemord (doilarted by Customs, rain same as domei . . I . . . . . . . . . . .

:

Domestic . SIO,50 par proof gallon w wn.o gallon whan below proof .. . .. . .

. . . . . . .

R-ficishon, 30 barl. M prool gallon . . . . . . . . . . . . . . .

. . . . . . .

0-p"-' " Noribeywago marodecounsne . 0 spirits . S25, $50, SIM. par Year ~ .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . .

Falconers:

Less than 20,000 procit gallons, $110 par Yell' . . .. . .. . . .

20,OM pol gillions, or ... . $220 M year ,,, .. . .. . . . . . . .. . .. . . . . .. . . . . . .

.

R I dealer hhxh~i'~~.Jjp Is. , a

YVhdft . 10 dower y. . . . . We rd r.)$!), 0. . . .. . .. . . . . . . . . . . . . . . . . .

liltmulachows of sfills. S55 per yea . .. . .. . . . . .. . .

.. . .. . .. . ..

Se ..uners .p .nattiol,st. . . . . Isi~ exch . . . . . . . . . . . .

Stills to condersers, ram,factured, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . .

Winess, cordlats. Cc .. tax". thriall - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Imported (pointed by Customs,

"'"

r;; as domestic) . . . . . . . . .

Domestic (Stol wmes. 17 cams, t,' conts . .25 bar oTe gaeon ; sparkling wines . $3 .40 : wrfiCially

c~atW ines, S2.40: llqul,,, centers. $1 .92)1 . .

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

I

`F1wai1'=:x-MxenSwmw; te in wines RM bear . S54 ;2rPaw . . . . . . . . . . . .

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

Wholesale doxxxxxx in wmes win no. old thads. year . . . . . . . . . . . . . . . . . . .. . .. .

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

a- non, local . .. . .. . .. . .. . .. . . . . . . . . . I . . . . . . . . . r . . . . . I . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

preened (Noticed by Cutecom., hit.,own. do domai

Domearic, $9 par barrel el 31 gallons, . . . . . . . . . . . . .

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

0-pat,on.1 Ines :

Br=ii .

him !5M barrels . $55 Far year . . . . . . . . . . . . . . . .. . .. .

barrels . mow. $110 bar year "d . .~ . I

Feet odall a in -S24 pe, year 0 as meod rated de,ler in disfilled spirits wine a" bow, $2.20 and $4,50

per nhi . . . . . . . . . . . . . . . . . . . .. wholosed, . . - . . . . . .. . .. . .. . . . . .

d. .I.,,. bes,. ilii par year . . .. . .. . .

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

Toleacco finers, total . . . . . . . . . . . . . . .. . .. . .. . .. . .. I .. I .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . .

cigimardirs. bobal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .

.

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

Large (Clas 4 " r. dc=d~ a .comi it mar, M*ft lo'ng $4 par in ..... d lot"" ('a- ,

,wach 21i.mcnes . fts- Inexact I- . . . . .

. . . . . . . . . . . . . . . . . . . . . I . . . . . . . .:

odaymim!a . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cigame. .0.1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .

Large cigars, tomal" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . .

Cie . A (Rmbny, at .1 - 211, mhm~,=~)6$2j

Cities B (0imr 2' , cens. net r 4 be

Clarlar C 6

im

. ~& d . . . . . . . . . . . . . . . . . . . . . . . . .. . . 'y: 4 com : he nt.,

C.*n ~M~ : $'I ', ==d! Ons, g C

. ;. ;

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

Class E (Over 8 cents, net mor 15 cards eaci SlOew theahland . .

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

. . . . . . . . . .

20

case net oyxr~o an. a.), $1 per ffimmandl . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . .2Sor

Glass G fr.12=

wrom),

In....nd . . . . . . . . . . . . . . . . . . . . . . . . .

8'1, Percent . . . . . . . . Viftiblosell: on . -1 ... than 2911 For dr-rel

OW price rhore then S235.29x mor thmseend. S2 per 11holniaryor . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . .

Sa I Cigars, 75 cents M thex.mencl . . . . . . .. . .

Preedyments . . . . . . . . . . . . . . . . . . .. .

be I rel ,!are, agareffirs, cigarette paws and cigarefte, InIff 'a' 11 S(corect by

. me we dmm.-) . .. . .. . .. . .. . .. . .. - I . . . . . . . . . . . . ..

a-.- . . rob .. . . .. . . . . . . . . . . .. . ..

Ogarrith, papers and tubse, papers one-half -i ow tubes 1 ~Vmt *Per so' . .* . .* .. . . . . . . . . .

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

IVII IM

310,822,1119 356.139.417

47,431.879 60.049150,

47,392

'

422 60,015.7N

39,456 34,100

240,fi V2,1131,5110

39 667 .646 46.083,249

1 97,567,618 2M.92k226

723212 90818M

W5 :M5 3M302

41,11n ."15 SA49.460

40 .561 1,775AN

.399 .11 . , 7A32 707

5.399.055 5,405,633

3 .6~ 986 3JBV,4.

697 :692 689.815

3,14

"

3,103,140

0 :

. IB'326

V 07

IN 93

10,4547 '

3 1

14 :~113

62,3 71

4

5

31 3

V2

2

2

178,638 180,576

22,497 27.335

151,951 152,573

3,84 727

350 41

1,342A30 1,390.497

9,2 22:,1.11

020 6 1 .3 n

1 6

2,120 2,280

588 640

2,514,321 2,390,601

2,451 .80 2,3VAI9

2,461,785 2~357~15DO

17 19

49.053 37,101

47,291 35,681

7 32

856 31

4,31, 626

I

n 3:90

it:525 5ON

01MIS 4 .248

4,870

- I s1 :6'92

90

I .M8 1 .423

23 24

2,063 2,460

7 1

1

I .M2 093

127

Table 3~internal revenue collections -by sources, fiscal year 1977 and comparable 12-month period for 1976- Continued

(in thousands of dollars)

S-1- M -.Us

Iwo IM

l1l.las I .....Conon.ded

Marnutinctirner' . cons. tacit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . .. . . . . . . . . . . . . .

Gasoline. 4 cents Fer gallon . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . I . I ~ . . . I . . . I . . . . . . . . . . . . . . . . . . . . . . . . . .

Lutbircriong oil' etc, 6 cent, Mgallon . ~ . . . . . . . . . . . . . . . . .. . .. . .. .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tram (wholly or in Tinse highway ry" part el wolow) . inner Won. and end nubtmr ~

. 10 cents per Nmd . other 5 cents par -no e .mpi la"ated Irn (Other

than type Used on highway ~ehdes). I bent Far po,nd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inn.I .b., 10 c 'E=

Tneed hibber, 5 : : .

'~;t'gx

Monor Vehicles, chabil"s, as, Pon" .. otmosoriess :

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

Pat, usernocl", cm- booms . OtC,, 7 penceml in . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . Trit bused .

. chassis.

N"'i - 10

o'ceril 21 ~ . . . . . . . . . . . . . .

Paris and acceirromer, for In,clis and Won. a Percent . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . .. . . . . . . . . . . . . . . .. .. . .. . . . . . . . . . . . .

Marble and rl,=w.1id1.1,pehpi . . . . . . . . . . . . . . . . . . . . . . . . . . . I . .. . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . .

=,me 1

. 0 ex

F,,a-'"' shows' 11 percen (other in- Piston shot t lw,dlwilm~, sheres and comidgmt, 11 barbe m . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .

Other I. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Retailer' . -do. taxes, betall . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . .

mranc. ch . ri~'3 cents per gallon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . .

Noncom mitngasolmor 7conItitnergallon

D,ftw and Special motor flels. 4 cents Par gri (m scone instances 2 cents pw*gaIx,r) . . . . . . . . . . . . . . Other

sincels-ir taxes. We,

Teraphone and relerybowalle, exonahc soxyr,im" ., . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trannemal,on or per- by re, 6 perment (,h,Ch was increased mom 5 percent offircl- July 1, 1970~ . . . . . . . . .. . . . . . . . . . . . . . . . . . . ..

Transportation of property by air, 5 parcent , . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .

Use olonernabonal ax.b,wI facilities. S3 gin person . . . . . . .. . . .. .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sugar, approemmarely half-nt pw pmmd . . . . . . . . . . . . . . .. . .. . .. . ..

Cdl~atedj gaming doy,ces. S250 per, dent:e bar ye ar . . . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .

W

= on" $500 Par year . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . Wagens. 2 percent of ammm waged .__ . . . . . . . . . . .. . .. . .

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

. . . . . . .

.

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

1. to, on highway vehicles Weighing over 26.000 polnels, S3 Ile, 1,000 bomds

.

bar year (installmen t Pm,doges permitted) ~ .. . . . . . . . .. . . . I . . . . . . ~ I . . . I I . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . .

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

so (ft on cnil aircraft. S25dow year with an adChtional 2 Cents to Far p-M on nonlumano engine

cowered war 2,5DO Pwn a or 31b cents per boun on Wrtbma origin, powered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

1=3 turrelfier a" occI hermit taxes

r,

equah,ation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . .. . . . . . . . . . . . . . . . . . .

Foneigral-ancIr . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . .

twas "-or da Net, ,a.

art in

.

Sell dealing, 5 percent on lessor of $10," o, 21/1, per- on Im,ndaren man,gw . . . . . . .

. . . . . . . . E.con ottoman holdings, 5 parce.- foundation . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . .

. . . .. . . . . . .

Taxable nownchl.r.,10 percent

. f-npah.n. Ideas, of S5,M0 or 21/, percent on foundation .. . . . . . . . . . . . . . . .

.

.

.

. . . .

in t=`p

" 'P:d

F.2u; : 'd,.r`!Y1' ;a =x .15"Fea. "Itund,-tit'n. n:Y_'P. 1, a

"'an'r, or S" .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inywimmints 5 . wrx. jeccorldfir. harealble, rposs . 5 percent on hpLh6hon. inseret i6,666or

Ehm .=,%m.7."`pI.to

.ar areger

Excess cone,bumm" to an IRA, 6 p-nl W notes. wmo- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax on noleadethbuhan, how an IRUi, 50 percent of undemsen.to . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

. . .. . . . . . . . . . . . . . . . . . . . . . .. . . . Prohibited hansohrms,

5

ponpahl of~,Onbdxdl transaction . . . . . . . . . . . . . . . . . .

I or on excess condnin,homs to an H -10 Man, 6 Pwcam of exonal min-m . . ~ . . . . . . . . . . . . . . . .

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

F lure to meet Writing standards, 5 pecom of Nnd,ng dormancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

To, on excess contnbuflons to weloi riccount, a" 6 pexcent of excess "Ount . ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fail,,ro to III, Stalermin, loq0red! by lechon 6047 M 6050, $10 per day up 1 . $5,000 . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . ..

Unclassified excise cins

5,622,931

4,180,860

95,58 6

701 .078

29'9815.06

-212

360.862

133.042

12,743

22 .094

4 Ml

55:747

493

430,037

10.677

29,106

390 .238

1 5

3,1591

1,679 .2158

832.218

45,795

54.195

772

6.42 5

I'll' fi'11 7

219,912

21 .60 1

342

1 .436

28,128

62 2n

59:81

M,

AI

952

950

102 712

"0

2i2

127

273,403

6.0611,6112

4 .322.M

100,92 9

737,667

30,722

24,569

-2.637

598,064

169,287

;3,352

5"'S

x,376

Sx,83 9

2

460,60 2

10.3DO

30,014

.0"90a

3,165,171

1708778

'957.'jSI

55,147

55.296

1.

6.563

77

6 63 2

220,200

22,786

589

47

38 917

80631

'8."212

3

1 03

912

809

2,067

1 M

25

74

2

41

313,118
128

Table 4-4riternal revenue collections by principal sources, fiscal years 1940 through 1977

(in thousands of dollars)

Fl .-

yess

TOW

(1)

'941 7''370:11'N.

'94 . . .. . .. . .. . .

. 13.047,869

, 9,3 22,37; 386

,"4 40

-

12 :760

1 M

. .. . . . . .

431,1131) 308

1946 . . .. . .. . .. . . . 6n:097

947

. . . .. .. . 39.108 "'

"a .

. . . . . . . .

OAK.

"a . . . . . .. . .. . ..

11 X ,IW.132

951 w4s.aaa

65.009.58 6

,964 . . .. . . . 69.919.99,

MIIZ .=.682

107 . . . . . . . . . . . . . 00.171 64'

1 1158

. . . . . . . . . .

.,.,.:4'76'

'950 79

.797

. 973

I,gel

1

964 . . . . . . . . .

. . . . 112 .260 257

1 96 . . . . . . . . .

. . .

114 .434 634

I "'

. Me. RW

'17 140,374.81 5

MMAIN

'87 . 19 .56D

110 . . . . . . . . . . . .

. '95"

Z

1T.71 191 "I .617,1118

., MASS,. M

I M

. . . . . . . . .

. 237 ' 7872M

1974 . . . . . . . . . . . . . 268 .iii.M4

, 075 . . . . . . . . . . . . . 293.022 .726

'976 . . . . . . . . . . . . . 302.519 .792

To lolffil . . . . . . 75 .462 .7W

1977 . . . . . . . . . : : :~ 356,139,417

In- ax! prsM- turese

Cpmetion Individual Employ- Estelle

I- Ia= swint end gin

T-1 sell

42) (3 )

2~:4121 1 "

:r24 2:01411

53:469

'I Ig 11" 3I

W.027,W2 14,766,796

P

:~121:,211

31 :1:r. 42

1 ~

29

31 :*172" 1:TW 41;- 1':451-'

n.W5,491 11,563,669

2B.007.M 10.854.351

37,3154,879 UX7,5159

50 .741,017 21 .468.910

54,1311),M2 21,594,515

54,36D.014 21 .5,16.~2

49,914J

.

18 .M.720

56.638 2 .298,522

W .550:4'"25 211 .111

W101,874 20 W3 316

58AM

-2S`

18 :091:wo

67 ~, n :,17.1:414

67 :017:9'4MI

71 .945

.-

21 ' 295.711

75,=,7 4 22.ik IM

78,891 .210 24,3W :80

79792 .016 26 .1313214

920":131 30,&U 243

1:4,20 34 .917i2i

40111 .148,565 211 Bill

135,778,052 38537 .646

;3B

31 .6W 'SM ZME .072

;43404 :;Z 3.4 .925 .546

64 .157,315 39.G45 .Wg

154 .W .004 4 1 7",-

202.14 , :711 4 :;41:=

4.

il~

41Z.414 9AN...:W.5

246 .067 ao

(4) (5) (6)

9132 017 am521

'0"

I ,

417 :656 925:856 40,:.

6326:22 1,105,302 .800 <12,540

9,02 1.490,705

1,738,372 "' 6 51,12910

;11a 1 .779,177 643,015

.704'636 1,700.8213 676

. - I9,U3

'21"

2,024,365 779, -

20,997.7.1 2,381 .342 agg'.5

18.05IJI22 2,476,113 706.5m

17,153,308 2.644.575 706.227

22.997,309 3,627.470 729

29.274.107 4 . w4'264 1133.7307

32,5311.217 4 .718.4M 891 :94

V.813.01 5 .1137.623 935,121

11:1:11 17:215I:r. 1.,7, 11:21.~

337642

39,029.n2 7 2.5110522 1,377~1199 9

38,568 It W 386 410 :925

40.7~1,4:7- INW :7" i:352 982

Ido

" 5

:711 ;1 111 ~:11 W

4.:" 2:502:451 916:3"

12,708,171 2,11

.

, 1 .7

52A715111 2.167,457

54 .SNZU 17 .002 .504 2,416,303

53 .60D.683 17 1 ' 2 :741 :12

61297.552 .:251112

~ 0.

.2

69.370.595 26 .958 .241 3,014,406

78,252.045 211,085,11198 3 .081 .9711)

97,440,406 33DW .657 3MOA65

~03.7:111.:4112, 17 3:.:076

39 91 690 3784

108,879 .186 43,714,001 5.48 2"3

25 2 .ON 52,081 .709 4 .975 62

i

1 1

42 :9W .650 62,093 .632 5.100.675

~%1:311941 70174:2 2.41:11 416118:07,9 6

068 :797 853 5:307

39,768 .579 19,892 041 1 .4115.247

io6,766.263 86.076:316 7,425A25

Alcohol Tolikeriber manuhn,

text town turn All

-1

am

W- W

.

.

M (B)

614~1 447 :08* 337392

617373 430,564

1.048.517 780 .982 on 2 682

1,423 646 GM 857 504746 ~ .274

.618:ns 988:493 W3 :462 .10,56

2:r1j11 2141 . il, 13 712511 2 2 .108

2.

1 :5, .

2 1

.22 :67 229

.425 .260 2 .7

2:24,'45~'2'7 ; :.% :L2O 1,649,234 2.2'01 9B6239

2 .210.607 1,321 .875 1,771 .533 2280 :

4219-02 414 2,4 1 "6 113 2.214 .951 .j..

j :=

.,3gS 2=*j77 2192,719

2 2-148.943 2

.1

M3

2 :7'.' :."5 ; :..:9'TI 2,...1. 2:.1 .492

2,7W .012 ~ .5110 :229 2,6119.131 2,413,1,'0

2 :

.742 2 2 :1 111 .213 2,8115 .115 2.018 .11611

. 574

1

:.

13497 3.456 :013 2.019 .3110

2,973,195 1 .674 .050 3,761925 2243 .8-

21946,461 1 .734 .021 3,974 135 2.166,675

3,002,096 1 .1106,516 3,958 :789 l,WM

3,103,714 ~,931 .604 4 M5,129 2 00,01

3

'2

1 991.117 4:896,802 1 :.3'582

NN 1 2052 2 025.?W S,IMINO 2.till,IJ117

3,441,656

2

'079237 S

A101309 2.278$M

3,577,499 2.062.545

6

020.543 2 .299.645

3:8772,634 2.1411,594 6,418:145 2 .453,405

14 .378 2 5613869 1 .895,909

4,075,723 2:aO7793Z 5:478,U7 2 .479

4,28' 237 2 122 277 5,713,gn 2,196.6099

4ASSeSW Z, XT;i55 6M1 .146 2~W.495

4,746 Z 2 014V 6 '1 210:6"

4XO.482

~:.

:Z:79. 3,179 .5

5:14,91:115T3 2171 5 2~'0 .7211,1157 3 .8131,104

.951 tt~395 750 3 .7 iD4

5.3M.477 2.437,005

5,

742:1 54 3,57702 217

5 '5' "

2 "M 1110t.611 301~182

5 :427:722 2 :4.7

1 .305,041

1

543 9 I.W .

5 622 22~ 068 .682 3.9511 .11113 .406,633 2,398 :50 6~

Footnotes for Tables 1 4

'Lesar Ind. $501),

R ..-.

1 . The Mcarml, in the lanous States do net indicate the tacishil M. burden or

each sence, In manyustances, lawix she calleotopm am State Imm Mantels of

gleffike reen SanSto . Far example. withhol,lung taxes reached employers J~~jad

. L, may -.do auxulans.1 rhoum. m!aYd

hom 'Wer

or

ermiloyeas whe Mxw,m -ghbonmg States

2. Includes Win an unrelated Wansxn~hcxom . .1 d.,anrdag.nu,.t-

'

Col achon . at undwid .al-

. in , wam itou old_.

disability . and hospital insurance takes 01 self-employed

Similarly, the collecto a of nd,,id,,l excom, tax withheld are Miconed! in S'CAi

combined amounts with old-age, Su,,,o,s . chili and haaaMl lunnance

In . (FICA) an sal .h. mid! -gas Epanned separate nalson.1 total, 1.

sid,ridual income tax and tor old-ags, sury,ors Win . disability. and hospital insurance

are shown, in the test cable on page andi are -dTn ObUnnung normal

IMIS Its Individual income lans and employment takes in able 4 .

4 . Sell~pcymenl Is, and Win imposed by the Federal Insurance Conthb,-

ban such M, . AV , applutabil with hoOlpeci 1. Guam slid Ann.hican Santa . Amounts of : posecied ~.n

Guam and Anuenctin Samoa are corribled win similar

takes reported let Office of Inksmanamil Opusallan-Omer .

5 . Includes Fiduciary Income bas copecturions, 0 $1 .1 b,pon.

6 . 87m=th noss yes 1957, the United Swiss total is adjusted! 10 ,clude

.

." 6 , dual I.,`= mam,imext to the Gmwnm,ni at Guam in

MoDinnice In the preirissin, of %bIxc - 630, warmed Aug 1, 19W I&

Stat. 392) . TPurs'adjusument anniounled to $19 7 million to, 19TIr .

7 . Includes whigmull of $196,376,000 made by the Dep,M,ent If the

Thinui

5 . This cluderl is designated to report .11 -- opulectami Mosexet train

taxpayers residing When of In& area smiced by its Intemil Reyenue Sah,au,

Carter.

9 . Pannal colleducas only. Does net include Federal on, deposit payra-, we

,fter R, Noweentrie 30, 1976 Under a new phocewmg system based on Federal

lowne Ilnk IIIiuch ymen 1, ... reported with hlexha~, N

'

fm

Puerto R_ nd "In Newark, New Jersey ar San Fmmx-%

.11-IL far 010--Cither.

10. Tax payments made to banks, imale, the Federal tax deacein strata: are

Vuded in the internal Myome collecions for In. period In ".. In . Federal

deposit is Hox,:be~ such paymhehts are not dammed by,ntemal

,ftem: districts W(-,dZ.W

until In Father

.] I =esses to ,

ch tax pa"""'M "to)

I 'a applied 1

. In. taxpayer a liability truth

W haturas filed .

11 . Fleswerrea "is Withesphe on locate to. return: tor -.n ?Zhe

lubhcalmg 'Y"hus imunance CZ t-P Ail C:W lot excess Pay . his

In (Ft y

NR _T

13, Relin"m alienis F.: Tounts Owl 0 outstanding tax lattififin other than

mon 1. 0and 1040A . wtxcht

the ecus a. clanned.

14 Amounts of Internal hinnanue takes collsoled on Puena Rican products

transported to t a United Slanks W consulted! an the island (Was atuars.

d a

.

Cis, and expenses) are

-a - reor

p ~=sions 0 wo, 7652(a)(3) allh. Irt .,:lPu_- R-.R!cW . a .'0

1954. The grow maunts are rrl,ded in Wahul explachato results (Tables I

through 4) .

IS. Refre to Table 3 fm con,chenta.

16. Th . Congressional Budget 1~,d Inlopundshent A. of 1974 (P.L, 93-344)

his Wished I am mical panod ( later I thrmilh Snembw 30) ell- ]in

cal year 1977. Far ohiparaiiie giencen,s,

97

data are far Ithe period

Octater 1 . 1975. trwough September 0. 1976 .

12 9

17. Corpoiscon Income tax Mies Ehocme January 1, 1905. first S25,OM of net

income . normal tax of 22 percent, net Income in excess of S25,000 comemoo

normal and unax of 46 percent. Normal Is, and s,na. else aWy 1, not income

d-- bj can,,- 1-MPt aramilet,ans from unrelated! tied, 0, b-neElect- mary 1 . 1 96B . a 10 pareell w, .,n,m siecluegre was added to the

=,cI_as, S,~64) . The 10 percent par arenuar surcharir was extended to

O,ID70.byP.bl.

T~Ila 5 _an

,

Low 91-172 MW. and then discontinued, Under In. Tax

Reduction Act 19 5 P.L. W-12). eff- for 1975 helurna . wmu,gwon

incretaxed to S50 000 0 . Iand normal an, reduced to 20 percent ' an finat

taxable income Than changes ... ...indeol by Th . R-.u. Adjus.men! Act

of 1975 (P .L W-164

I

to June 30. 1076. tor 1976 return, at Miss designed (a 'it hi

00,010 the half year anenthon . The lower rates an Fell ghs, suna, I exemption

were extended through 1977 by the Tax orm Act a$ 19 6 (P .L. G l

Ill. Rain at is, M as follows Ind,~nJuM Income tax : Eff,ct- Annq 1 . 1965.

graduated miss from 14 percent to 70 percent ol taxable innTme. A 100mm

Par md,Wdu S annul surcharge added =Ihc~a . was . 90-36u, affect April 1 . 1 . for

extended to rnb 31 , 1 969, at the some must role

(public Law 91-53). extended to June 30. 1970 (P.W Law 9,-,72) at , 6

percent annual is e, and then discontinued Includes SE& 17.9 percent

on no earnings up M Sl 53DO let 1976 and to $16,5DO far 1977 .

19 . Rates at tax are as follows : Income Tax gy,ftated wuhmoId,W.n ;xag- in

excess 0 1111phon' : Public "W 6"681 affiedne Joy 1 . 1

.

to 33

percent 36 : P be, Law 91-172. effW- January 1 . 1970, 14 to 25 parcel ; 14 to

percent all-ve JanuarWli. 1972. under Public Law 92-178 : 16 to 36

per 0.,.

April

30, 1 5, Win public U, W-12 and W-1W 15 to 36

P= effi=e June 1, 19~ . under public U, 95-30 A combined FICA to.

Ma, ot

'1 7

can, in

O"ect n -l,ries and wages up to $15,300 for

callne'" YlIM976 r"d$516 .5att to,

10977

20.

C"`h

., of MI rai retirement parnbuxid tax rare of 21 .2 percent far

amp calendar years , 585 1976 and 1977, To, %phes to employers M 11535%) and

=9 ( , %) and a imposed on tax a portion of wp?,, (limead to first

$1 .27 on Minty taxable for 1976 and $1,37 tor 1977) Further

includes ,,I,,,d employee MpMss- I,, of

2

1 .2 percent let calendar

year'

1976 and 1977 an taxable

pan- 0 ociapulashon Mooki,ec . in eftuan .

a supplemental M, le,ied quarterly by the Railroad Reluennal Board istimposed

on employers and employee repressman,es based an m-hour, worked

in at .1 2D Caleattar weeks w paid

.7*.,Or. T. P%%~-

"

5.W., u.w 3 .2 percent, eftecrxe

January 1, 1974, and 3 4 percent, offiwax. mary

I

. 1977 . on la,aW* coman

of wages up to $4 .200, This to. is reduced b credits to, nemploynn-I

ophlbutuins paid to States up to 2.7 percent

.1 FjTA is

,

22 . Prior to January 1 . 1977 , sa- M Miss *1

the firtil S5,000 at net -al. In a

.c_ or ClWaduahod train 3 percent an

exemption to 77 mmull In

=,.,wittanies . $2;, 11 schedule

an " r 'ilt

~h :1

=Msv'lln .

a

;i an to

S3.000 n.u.1

..d.uh- 1. each donee B"nurl" Away 1, 1977, the separate rates for

estate. and gm, or . Mol.ced by unIhool Mrs. .1 is. graduated Imm 18 percent '. 70

credit Wpencent The separate exemption amounts Vr $47.5ab to be ;;,e~Zad by , unified

phassid in 0- a 5 yea, par, credit 1. Ign) .

11, T oht:%~,ahgs, s .1-DIN as a.light truck, repeated December 11 .

IS 1 .%rlh . us Act al 1971 . '

24. Induces painquent taxes on 11013 hionl0d by Public Iexis 87456, 88,36 .

and 89-iM .

25 . Flats Ins reduced Inal 8 pentem

percent on January " " P-' an January 1 . 1075. to 6

1

. 1 976 . . 1. S .c.nl Isms, 1, 1977 (F-,,bke Law 91 .

614).

26. Terminated ofiechne June 30,1975

27. Transfer, I machine gins, shern-b-Oled firearms. swincin . Inc.. $200

eal : 7"Isis guns I x al . $5 . xh%.-.==n,and rill. b an ... ano What .,WW

,yP. I... I are lay,ed! an manufacturers,

unportent, a, dealers in fit-- .. an.,nicauded

insie amounts shown

28, Lgian- authority -p .Md June 30, 11171 .

29, This amount r prewats an 0-st,terhent to the Presid,nhat Election Fu,,p

connected aher the close of the Incial year .

I
130

Table 5 .-Amount of Internal Revenue refunds including interest (in thousands of dollars) (excluding tt~x rebates) '

Intionall inswerium regions, illethicts, Show, and other Indikidued inicanse and surploynhant takes

. .. (Stedes imprentanded by Wn W dourict.

Ind In pinandins"s; totals For other Sidde, Corporation E.-.~

other Emme Gin Esciss' tb=behown.W we) Total' In- bradaywarat

United Somalia. Total ~ -------- - ----

llkwth~Aflmdio Regain, --_---------- -------

Albany --------------- (Sao (1) below)

August ; .....

Betion

Br."n:::::--------- (See

Bull It, ------ ------- (San M baki.) -------

sun*lun ------------ (Vereterit) - . . . .

H .M.d __ --------- (Connecticut)

... .

maninston

peridurroull, NeIS-w'HabZpmhk .) --------

N-W.n ------------- JRhooll Island)

IdWlinfl, F *glo I n

audiekk .

.....

.

Newark iN_ Jdr.:,) -----------

Philadelphia Sea (a) to -) ----------

P,11,,h 1% Richrikind ~V ..oi)11w) -::: ::

. ..... .

. ...

Wd,,gton . .

. -------- (Delaware) ---- ---------

Southeast Region ----------------------- . . .. . . . .

Austria ------------- (Georgia) ---------

Barturights"i ---------- (Al.b ...)

. . .

Colu, is - ---------- (South Cali;lin~ --------

Gnionslocko

I)

IN11 1.

Jackson Mississippi Jacieuvivill P.Jda)

,hull,vift! iskill----)-

Central Reg n ----------------------- . . . .

C d~ ba::~ ------ .nion ~1 ~ d

Ck.,=d'

Sao be . . . . . .

Detroit

Indoinabod" dona

Louisville __ : . . . . . . . . . K-1-1,- -------------

as Piuk'"'b" a latent R4%;' :: : :: : ::--(W n

Merdem - ___ ---- ~Sow~bakota) -------

: : --------- (Sao b) Wikk) . . ---

CD= ---- ... .. toks) ------

Fargo

W.-set)

Onnothe

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

(Notinislat)

---

S : IM seuri)

S; Paid =vlose .)

IF, it Ilee I

but a

d

A. wit. ------

A= 1) low) ----------

-- -----

Ch"" Delta.

Denver Sea (

(Doused

.) --- ----------

Little Rock New On - - - --------- --------- (A,lounho) --------------

Louisarts) ----------

OkIshisna a ~Oksho-) City-:::::::

: -::::: : -

::,

Wichil K.-,)-----

W ban R;j1 ;; ------------------_---------

Anchorage ~Alaio .) ------------

Boise ---- I..) ------------

H en. -------------- (M

Hotel It, -------------- (Hawsl ."i"? -----

L=lflaa ___ ---- :

I,A4-~'- `cv~ ----------------

F=d

Rusto --------

Sell Lake City : : : : : : : :i 'Luahide)

San Rancoulto

. . . . . . . (Sao . . . . . . . .

Stands (Wakh, o n

panarthow _!

: : : : : : : : :

Office of

uWW

Puerto Ricto ------------------ --------------

Other

Gambia., lubricating oil whe weass

(2) (3) (4) (5)

36,493 .095 5.423 .OM 29,255,379 1,416,344

51101 .911 670,229 4,065,719 107,242

211 1 .:111 17,980 248 .21 5 j371

.11 11,774 119.5,13 (Xilr

924,563 122,602 78090 17 ,02 1

1 .03"1 19 65 .468 4'21 17,063

Wil 394 73 03 SOl 307 10,702

5S,2DO ':`io " :'%

67 9

642 .0,15 142 . 43 4V 4. IM

1 .070 .279 397.7B5 624.565 35,

24411 14.556 105,175 4.307 ON

47 :254 21.0,11 123,266 2.62 6

5,242,476 913931 4,ln,415 Talti

936 471 105 :735 801, 56 20 1 3

1 . W :6216 19019 1,110.740 26 W7

1,224 92 240:N5 W.8,13 25:43 8

89 230 290,874 589 %Z1

12,

729 52 ' ' 652:327 16,338749

108 :6215 3':~ '12

75 1 1

:N3

4,31,2 :540

T~"

3.513:424 131 , 9

7 883 .2211 601,630 23.133

454,149 41gN W9.15(50 1 1 055

328 .63 33.289 288 ON O:4W

"

I a 9 :.12 93,562 538:284 15 71 92

23 18,035 203.0 84

1,304 624 25' 6 993,396 41 .011

623:904 Ist' 4 1001 17.

4.

5,102.858 Sl 4.2:5:524 132,704

791 .740 ' 5':~107 61887 14 .500

1.17 348 124

lig 901

:593 49035

1,"2,100 163. 56 1,431,933 28 .038

M3 85 67,304 7C9 79 20 .652

.0:509 W:41 3E3 1 8.3,:4`16 14:7 3

T

.

146,314 2'

75

21 67 71

4

.9, 1

.10.30 3.697 161,904

7 6229

7:7'37 8.038 :9122 7,081

1 .666,350 317.900 1

.298508

40,2N

W, 783 49,826 3048 5 21.905

"

:16 5,13,10 65:0 1 7.269

076

.1

98271 558,41 7

2 5 W6011 168.947 305 ~578!,~:4'14

72=2 16 700 5M, 22

'611 .511) 91 :~149 504 :401 13.21

426,821 36 33 372 I'll 15. 386

4,165 .020 sit .633 3.3113,301 170LSS4

160 .018 17.0,19 137384 6 N

1,165,974 174,40 9,18 :578 36:513

M 406 a 1 101 58,246 ':1 6

790 IN 120925 621 .209 40

460 :457 60 :110 378.641 20,0525

236 .286 25~407

5550 73,655 D4 :M3 '0 1 461 :~013 ;7 651 .21'

4 9 71,5,17 314,185 16,aw

324,579 38 .376 263.ON 20,831

6, 853,165 sum 5.76976 158767

6 8 :904 152:5479 .:206

'189 15 .129 to; 260 47'

2 .580 13,263 77 :4

1

4

;7'7 .278 37.538 1395,4755 3.572

2.673 :1.31 293493 2.W8.37 8

~N 38.322 317,683

426,2" 56,974 112

.

. 15, too

1:3 11

s

:2% 4~022

102:9,47 is 110 172,347 5301

1,N2,958

29" 3 1

.495,076 47 :216

"" 95

Its

.

41 527.833 n,M3

21 .:121. 41. 039 1.91159 19'"1

12 364 2:42, '21:375

N653 45.41(1 '22 253795 'ONG

102,965

21,695

675

2,2626

37 4

1 :944

147

2 .74l

9 .330

398

171

13346

3 :838

414

2 :60

1 273

9"490

12,0511

12:07155

W

889 3

%

1 575

1 :609

7, am

1, 573

74

:Ng

1 .78 3

552 2

16.26'09

23

3 '78,

4, ii

168

2,196

2 .M

ij,tti

247

13

215

5 .0 9

31 4

2,380

1,372 28

1 6

.223

1 .2W

1,7-

16,637 J .,

161

3 0

7,1 39 296

758

470

1 0 5

4,794

957

764

V)

764

40D .140

FICA Cmd a' -------------------- ------- - 531450

Bureau of Custome

. . ,

:029

Etervad I- Chwilliti-6W.W------- :: ::: -------- 7,782

Refund* revenues unchussiflac! - ------- ---------- 39,363 28.m

107,762

.67 5

Total, to, States not shown above

1 :~1713 641 1'1~1 :171 1

j~lj 1*11-1 . . . . . 4 SKAN 1 1: 9 3

flenow - 2:0'923'.171 V 354,1133 0 : 26 Wo 5 . 4,0 2

3073,458 55ti.283 2,424,n8 170 723

1C,i 1:970.088 378. 16 1 .520,471

63 Z' 3 3

:.3~11

1,rewlarl 2, :.121 531,719 1,532,906 37

T .... .. . . . . =172 295,388 1,669 .787 77,M2 7,467

(6) m

6,254 25111

6m 16,2M

38 87

13 7.

77 1.701

97 , ,

77 :3'3 5

1541 3'3,067

155 3k1 O

36

11015 311,01 6

62 4,867

220 15,326

167 13

495

1

2s"I

62 3.509

9 831

1,058 2266

94

0

:7309

142 150

35 '65

113 3 83 19.3749

379

515 1 :

4

76 7

60 27,62'

Q 2.635

266 1

174 s:g

132 4.1 99

42 21.26N6

7 329

OGG 29, '57

4

N

200 1.124

4 1

26

137 Im

Q 392

70 11 ' , :3 7

98 41

1

44 1,092

1, 303 a 025

186 90

139 1

.

2 2 "7.

6V 4,221

1

25"

1 177 107

3 5

43 i gg :320149

479

906 'ZO7

2

17799

22 94

28

N

20 04'

41 49

1 SO 2M

453 56

ill 4.733

20 N

7 967

4 962

3 25

131310

:02 9

4M244

367

314

662

766

10 380

6.816

1 lJ40 4

~037

14 Nl

5:424

131

Table 6~1,11 .11171ber of Internal Revenue refunds issued (excluding tax rebates) "

internal ---nighorm . districts . S..... .. d

What whess . (St. .. represented by Ingle disefloo,

indicated in parandhime.; total. I. he, Stabut

.I- ad thood . of table)

Total

(1)

United Slates, total -------------------------- I 07,nS .91 6

eortb~Auamlc Region ------------------- __

Mary- -------------- ~Sb. c) italowl ----------

AugwW --------- Merrill ----------------

Boston ------------ (Massachusetts) --------

8 milyn ---------- --- (See (c) belm) -----

Swale -------------- (Sao (c) below) ----------

Burlington

Handbill - =L

M.-thit = m below) --- ------

P--uth New Hishpink .)

Provide- ------------ (Prices W.nd)

askWhintic Rag on - ------ ---------------

Baltenore --- ---- (Maryland A D.C.) ------

Newark ------ - ------ (New Jersey) - ------- -

Philadelpho bet-) ----------

bal-I ----------

(V,agkilu) ----------------

Wdrungson ------------ (Delaware) --------------

Southeast

All A rate -------------- wall ch -------- ----------------------

Binn C u= Ileurrug . --- ": :: : :__ __ : :-

ol SoughCard,-)

G, .nsbon, ---------- (North Carolina) . . . . . .

Jiieleon ------- . ... ..

Imes .thpok) -

j 1 1

. ----

(Florida) -----

Nashville c"'n "--------- . . .. (Tikkkuhad) -----

Central Region ----- ----------

Cincireat, . ----------- (See (d)

C'evallanj ---------- _ (Sao (it) below) ----------

Godho_ -------------- (Michigan) --------------

Indianapolis ---------- tindabla

Let,ovill- ------------ (K-1.4)

paruersOuig --------- (West Vagina) ------

Midwest Reg - ---------------------------

Abenteen ------------ (South Dakota) ----------

Chic, jo ------- - ----- (Sao (b) tollow) ---------- a

Des ones . .- . ------ (Iowa) --- __ --- ------

Fargo - ------------- (North Dakota) ----------

py,hya,jaa ------------ (Wisconsin) ------------

Omake -------------- Noterall --------------

St

S : Paul MkInint im - `- -------------- .)

SpnngfmW --- -------- (Be, (tot

Southwest Fall -------------- __ -------------

MbWu'r'u- ---------- (New

M.i.) ---

Austin ------ : : . . . isse, M bal-) ---

ChaywnW_

Dallas --------- (=ng) .)-------------- ----------

Derke - -------------- (Colorado)

Likes Rock _ ------- - Arkarsas )

New Orleans ----------

Oedianterno (Lds' I ------

City

Oklel,' _ : :- :

Missile . . . . ~Ktekas)

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

imenamew Region --------- __ ---------

Archo - .9 iAIII)

Boise Ideno)

. .... .. . .

Helen.

Hdnoausu

Los An as .- ------ (Sba W beli----------

Plyakir ------------- (Aruohii)----

Portland pregen) Fare

-_ Nandd)__m:__ ------

Salt Lake "._C.% :::::::: iiftal~e)

San Sao

Sidual- -------------- (Witalurquon) .

office of international Oparrallone-------

Puerto R- -------------------- __ ------------

ft. ---- - ----------------------------

,khund r

;;~bt

onclinallm - --------------------

(a) California-

(b) Illinois

(c) New York ----------

(it) Ohio --------

is) Paskorys, I, .ano

T. ses

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

9,51011 .431

610,458

M5,693

1,894,657

2,020,676

1 .434,990

l'i4 897

17,732

1,N2 .205

2 8 .274

327,849

9,613 .327

1 .729,489

2 .422,434

2 .292,300

1,41

l .W7 W3 : W7

IN .437

9.5291877

530936

:020,716

W9.1

40

1,616.4 2

~.11 :173

570 O

N

I , 357,891

9'as no

1,453.352

1,999.638

2.879,760

1 .63

9

N, 1 7

51 " 773

M

.327,169

187.181

2,78? 648

801 :536

1 78. 670

1 .4 2.671

456,481

1,418,054

1,21 .000

880 .918

8,405 .770

359 .955

2 , 326628

130 .995

1 .590 .05

,

866314

554549

1

.

wool

78 WO

678,503

11,613345

145:61

1

252,302

233070

4,381 293 :S.9%W

1:0 M3

5 .

2380:750

J81:113

95 . 3 5

1 . ; 79 996

96:403

40.585

55.815

94AM

7 341 IM

3 :663,5116

5 .408,329

3 .4S2,M

3 .705,630

3,91 Issn

IndlAdoll Incoole and lunpulynkeril I. . .a

E . ... . Ive

Pi"

ch ym.nl Ot", Eitte. Gift Ent-

(2) (3~ (4) (6) (6) (7)

463,IT7 64 .631,066 2.649,467 22.224 11,633 48.351

71.708 9XII,423 M9.6016 5,630 739 5.323

3,Ml 587,689 18,263 294 38 333

2.520 320.531 12,075 .167 2 3 9

16.395 1,817,095 59.298 631 927

9.NI 1,951,152 57.773 1 , 39 113 69D

10.069 1.38 41 .726 1 DO a s

I .Im '52 10 13S M5 6,852 '48

1 74 7 1. 07 1 . 579 37,336 627 117 606

5:400 1,228 938 95,529 1.309 202

2,418 265,020 10,449 67 2'27.3

3,0511 314,237 10,307 91 i 01 146

$0.270 23 191 313111 ~.Sal 971 5.257

1 2 :s

5 4 619

1 :662 76 5: 76 20 748

17 :'2'6 2,M8 .8a,l

":7" '

.7 3" 178 624

12

. OM

2 ~1 .249 73

.9 7

. 283 ; :1 5

5 .567 1:Mi5 45, 41,104 39il 1 51

8,518 1 .504 :123 W383 402

"1 :59

2 .984 177 .456 6.639 - 35 1,26M,

62 6112 094024 362053 3,460 025

6

. am

699 1

.

463 56 :097 350 145

1

1 :612 . 03

1 978

.

4~ 3 180 212 81 675

4 :2N 807.215 266.3139 2 2 59 650

10 .685 l,s,17.q,l 56,261 4 92 1 .054

3

.093 56 22,645 g

45

536

22.213 2,42 87

:2 5 1 .

339 116.650 1.714 427 750

7,306 1 301,295 47,831 418 76 065

51,341 9 2,959 4815 Still

W2

08

8,311 1:397:51 51 TO :N3' 3 85 711N.

12.337 1,924 502 60 Ul 600

16.435 2 9

7

1 : 19: 117 1,672 .71 90% 812

567 , 00 60:444 6 123 1 .4

4

:2

7.2 904176 39.063 336 43 757

2,747 499:038 18,474

1

43

'a 312

67, .552 BIG" 54 439,935 5 .332 1150 BAS2

.662 ,M:634 16,414 113 21 337

17:1 2 2,665 .847 96 im 1. 3 2 1W 170

. 57 736 , .927 56: 61 695 124 1 :031

.~43 "1 51 :2123 17310 1 30

.1

42 1

11 .332 33

. , 5 68

.733 818 134 43l

4,691 41 3 355 4 344 498

1 241 I.M52 :43W1 62:05 718 1019 1.51 5

8735 1 8 62 ;0 1 .0117 1 : 5.153605 54 W7 524 2

k.769 32 :OD4 42590 7

51160 I 7,96S.340 3771647 2,906 717 7,411n

., 4,3N 98 3' 89 3 258

:N' '9248 712 1 1

.

11 .43a 2,22ZI

11

41 772

91 . 67 121,806 467 N 20 is

643 1 .600,596 4:042 593 150 827

6 :617 520275 38

5 11 52D

.30 2 1 78 720

MM 25,376 26

5,995 IN .242 41,595 274 .702 129 839 56

5,188 741.769 39,665 30 65 750

62 .697 43,261 37

2.

U4

5 :0'25 11, 06,090 461 522 it"

: 7.

7.

2

die 697

1, 091 137,426 6,855 2 3 'it

2,01M 233.453 16,362 1 00 21 272

1 55 213,380 1 4 4 330

ENG 2 .404

1 :.'2, 1 N 32

27 .752 4, 1 m SO IS3512 2.042 266 2,; 1985

4 .641 661 :4'81 26.514 2 W 37'

6,208 807.630 35 .641 300 55 11, 3

151 228,186 751 ;~ 41 34 210

: S:

D

,7, = 2139 367,677 1 033 16 2

2 '820471 117,4n 1 .599 184 2. 071

7,813 1.1 15 54,7 9 427

1 Oil 1

064

740 '63m, 31 .286 170 29 74

17 20. 127 12,431 2 4 4

2%j723 135971 18,855 174 25 70

96 69,680

Toles for States not shown illoome

45 .085 7016,659 270,989 3641 45D 4.269

22151 3:497 .851 138,746 1:989 307 2522

38651 5:149 326 213291 3,694 453 2914

21 :148 3 322:013 106.914 1.9114

1 a.

i,74

1715 ,:569:700 ; 14 853 '14 430 824

21 :% l 723 907 66:290 1.305 297 3.599

Ti-le n,mM, ot 1974 - year rebates -1 168 .392 ~

D .SlIct cillee details were mt available to, et,,d eva,sal, rk,ndmg class,leal,or, he, FY 1977 books -0 Closed

Tith, Yet, 1974 rebates totaled S4,104.538 . ,cludvi? S68 .053,rloiku

Figures include credits 10, the Federal Old Age art S-,vom Federal Doatol,ty . a,d Federal Hosplal k,st,,ame F,,Ids alrot,rung to S400 140 .000 ne

C'oa.d ., O, like eas a, Is .d,l

. I

., go

."- e

d

dus -ed

arwn1 . urid Ild Fild-) inurar Conl,,Wtcn' Act (FICA) are S400,140,000

D,luicl H- de ads .- not ivolabie to, rol,nd _kkeels Pending classdcalwn -en FY 1977 books ere closed

Lou than S500.
132 13 3

Table 7-Number of returns filed, by Internal Revenue regions, districts, States, and other areas .

frearmal newershe region. disokma, Stable and other

areas (StOW hapfe~ by single distriote

Indfteell 1. furrenthwas 0

ohown .

. of brb~)t .1 for other Stares,

Tom Irdwidual D.Imirt on

W

I- of Mal- printraw. coponothim Estat.

Ratume . anded us Flaturtlary ship I- - le.

(1) (2) (3) (4) (5) (6) (7)

tioned stft.. total 133,6114,15" 85,611,191 11,0911.480 1,662,70 "I"2W 2,247.ltl 2411,316

Rapt on ------------ ll.ml,151 1,10W .159 X17.955 133.569 450,560 42 n8

At be ------------------ IS A - - - ------- M

.

.in(e')' -M

. to dwi--------------- 766,T`2 71,789 9,473 7,652 21 .1m 2.945

B_ 3

------------- 652,652 415780 39210 B.M6 3,260 1 "OU 1,370

smclld,n, (C) bwow) _

.1306,15f 2.3U:SW 222:458 89."2 17.83. 74,660 7,979 : : :

IS

H I !!~

3,956,556 2,595,769 258,090 22 .062 26.9W 103,276 9,428 "'I" 1~1::nol'tw : : _ _ 1.1~1 .171 l,"7.603 158,314 34 .469 18 .668 42,702 6,815 .

..g- 3 5.878 189.490 20.478 4,263 2,570

molold -------- ---- (Connecticut) ------------ 2 .254.102 1,428.537 152,912 42.096 18 .51 6 6

.369 592

Manturtia ;__ 43 .570 4.~

Pon-th

-------- 3267,787 1,676.597 204, 158 112,228 32,239 12 1

P-iM- ho'l. Island) . .. ------

SC1,807 U8,519 33

604.M5

.50 5N2 3.111 10:2'0'1 "M

397233 33,179 9.144 2,882 15,769 9" 11AWAII-did

lfalhmd~- ------------

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

(Mardand & D.C

18 .750,914 12020,679 1,120,082 262.76,1 137,214 309,799 32,034

.) .. . . 3.206.274 2:128.230 192,125 '962 23,106 48.487 4.936 Newark ----- --- (New JwMgw ----------- 4

In'd=Gh aw 1,11 Ses I:1 be I .. . ..

.759.447 3.054.13,11 300,639 49,805 37,810 123,391 9.668

. 2,131111 285,821 91.589 32.963 61 .491 7 .973

Richbelow) 2,575,452 1 .760.473 =220 38,593 19,85, 26.558 3 .70 0

2.957:130 1

R'S.897 161 "S 2

.7.7-14 22%368 42 .042 5 . 14 B9, 695 23 335 2

7

Southeast Agi on ------------- ----------------- 18,88a

IZ 0:608 72 .096 .630 734

.0 042,7(15 1.069,"2 lse.isi Adam, 2 i4a,22s 309,732 29,787

7

lb-I.gluen ' .846 59 1:211 :17 124,869 21,702 21~931 ..399 3 .146

Col.rob Is ------------ (South C. .I,n

.) ------ M:705 45320 87 .091 13.928 12.949 24,7N 1 .763

I .5M,855 1.039,371 76 .567 6,856 11.007 21.926 2,04

j."11h MII 31,1071 2.065,315 156,M 23,426 23.9N 48.551 4.247 isoksoh aew~0')' - 1~ W, 3 Go

---------- 5,677- 3 75D287

.53 :.21 6 104 7 15,756 1,175

2 :27 3:2'96 124,911 14,210

2,586 :47293

.'93 .803 so 111 7!1

4

C Ci .1 RogioIn -------------------- 9 1 N,639 __so . ..

1194~ 18,696 24,601 29,395 32W

. .. . . . .

Gweand ~14,1,711 1,824,566

. 1715114 .779 ll,M7.253 1 .014,290 197,773 165.219 260,825 28.407

159.064 33,352 27,102 37,931 4.639

Detront .

. . . 3 :n5.3O6 2,510.500 217,962 46,156 34 .073 59.665 6,728

two- 5189 :121 3SM 297 28HI 56209 56,705 78236 6'~

Louir,11.

3 :095 45 2.069~M 194,985 5 20,549 45,632 6,464

1 .11M.3 1,61959429 1,05,3W I G 607 1830 25 .527 2.700 M

.. 11'rnl .. ... . .... ad Raa~ '

.. 28: 58 2,205 8,864 8'W' 13,834 1,432 In -------- ---------- -------------- 19 .193.465 12 a .2 A

6425,427 1,245,159 290.937 173,966 31,9 .594 49,695

Chi.ZC ---- :

: to,. 21) : : : 5..2366 2 251 27,261, 4,235 4.989 tm U6

1

ON . . . (Jowd) .. . .. . .. . .. .. 223:5132 3 509:168 ~23.51 9,763 49.247 90,215 11,862

Fargo --------------- (No

1,90 A52 1 .143.703 141 .276 31,574 19,755 31.585 7.037 . Dakota) -----.5

3:042 255,832 25,398 4,237 4,745 6,389 1,565 2.

.7 1 , 833 900 9031 47,50D 21,BOO 51 .307 1:,312 2 627:793 St

... . 1,063.35162 1870,441 13.135 11.330 18.924 7G

St

. . . . . . . . . . . . . . 2,898.

980 1 .641,195 192,683 40,180 23,511 52 5,002

2,476.466 1,585.545 143,165 27.381 21,45,t 42 4 6 .151 -------- (Sale (b) beemeF__ - ---------- . . . 1,852,304 1 . 186 .040 132W 22.924 17,137 20,459 5A70

Alo.q.orm"!

-------------------- ----- 10,952,347 10.677,115 1141,721

883 71 7 1

lV,4O9 176,40 258 24.954

N::(M 38:2' 74

Ausbn 34,062 5.268 6'~ K

__ _ IS 04=1) 2."1215 12 21 4 001 45,905

560

7 :1 Ch by - ------ 4.4'.

. ' I

: 56: 5 5. 362 ------- (Wyomrg) -------------- 283 .302 166,7

Dallas -------- _-_

46 1 a,

2420 3,M 5,81 1 De- (Sea V) W-) ---------- 3,386,486

I111d*) ~

2,074,924 'N'I'S 40,001 45,063 47,350 4.470

how w;;----- ( 1

:7, , 1,087.805 101,391 21.305 21,500 33,RS 2 Uwe Arks-) I Sd~51

.373 724 .611 6S .734 7,174 11.078 17,765

'Am

Oklahoma CRY . .. ... . 211.3 .1 U81955 108,025 a .WI 13,190 38,40 2,021

Innohl

1 :646 .962 1,024 .671 100,295 14,641 15,9150 213113 3,065

--------------- 1,520 .099 919.529 1062W 16,718 13,92 22:935 4. 65

"2'

14,M .965 1,446,493 247,019 202,216 333,504 39,wo

B- ----- Ideno) 60

.316 164,326 7,025 851 3,608 4~~l 178

Hot

Horokul

- ------ ---- 535~815 309,725 33,672 4,666 6,073

S29 594 325,342 30.069 3.672 6,272 . S, '%

9,524 1,272 - ------ ---- 560

I~Iww 8':~

.389

.436

'364532

a384.:899

33.734 5,117 5AM 12291 IN

511 95,783 104,531 122,909 16.471

Ponlandl (Onogo,) WW 036 65821 89:010 16.933 11,916 22,068 2

too R

. . . . . . . 1. MA I a 1.117 103,727 17.074 18.681 26.542 2:G71i - -------- Ile-,da - ------

.

. . . . ~.1 :940

726 San Like Cq Utah __ 21 .0~ 4.782 4,SM BAN

5,715,004 4643N 31,1013 91W 8.703 13.905 .10

S" 2

8410153 3,7W,397 412.176 0,820 66,570 87.951 107

offlGe, Of htwrU~J

.383,212 1,512.953 150.033 2UOI 25,463 36.572 3:7`6

op"l---- .1

Puerto R`Gd --------------------- 6"'350 416.$M 55,226 age 289 4,610 Dow __ 339 : : : ----------- 261,"3 7692:966 1441 :~421 45 26 237 22

----------- - ------------------- 422,907 7 05 649 263 4,373 959

Total, for States no no,, woune

(a) California------------ 14,ln,501 9

. " GO I

Il ~~7

1.01, .6 :13 59 583 171 19D.860 27,227 4 .05108 4' 22 :687 6611.1 110,674 17,7321

1.117 :.4 1:.11~7:% 692.351 178,232 491 289,OM 25845

--- 2!5

.0 N 3

'6:.5.3. 4 .645~176 : 97,596 11 Z67

4

77046 79.508 VM5

(f) To.. __ ----- -

46jD41 130,482 52 , 814 88,049 11A82

- -

--- 7.824,560 4,96120 408.743 81 .002 MIMS 103.915 MG M

Column Contends:

(2) I= Forms ING, INDA, IO4ONR. lO.OSSPR, 1010C. and 10,12.

IN E S

(4 041

Form iost;

Inoudes, Forms 1120 .1120 Somalia Sk~jwd . PH . 1120L 1120111). 1120S, 1120-DISC. 112OPOL. and 1120F.

(7) 1= Forms 706 and 7Mt

jl.~ M711 NA

.

U Forms NO, NOPR. W 1, flat PRI & SS, NIE. 941M W 942PR. 943, 943PR, CTA . and CT-2 .

110) in"O"' Me M, 99bPF

. 1190T, 990C. 5227, whol 4720,

1~2 :=F=1 . SO" I - =C~ : 4 GO, i 7

3 730, 2290VM"IM Tak Pill-. and Toolecloo, E.d. T. Fter-a. ~rx*,des Forms 72D ,

. 720M 111), IIC. 3780 . 37111I)k and 4638

4~ holudes Fornts NOX . OX . 2688, 40% . 7004, 1-, 1120L A M . 1005, OMAR, 4578, 5300 Sones, 6329,104 tA, and 2438 .

Table 7.-Number of returns filed, by Internal Revenue regions, districts, States, and other areas .-Continued

=M --.9l.n., manhole, So .

. and down,

heMusented by single diabloor

liuJIMIS"t" Gulf for other SUM.

shown Of W :U~t

thnined Stat... -W --------------------------

N.A~Athmtl . Rgi n --------- __ ----------- _

Albany ---------- I " - ----------- ~Qklsla

Boston -------- IM.-1.Mth,) --------

Brooklyn ----------- See

Buffalo ------ ------- (See (c) " bel

B.Ong, - ------------ (V---') -----

HaMm'

-

Ilqecloull -,

M . ..haW --- SM ) below

P.nwn,Ih__ : : : :~ : : : : : IN Hampalhire) --------

Pr-d- R::Je Island)_

Mid-Ati-tIo Region ---------

Balt,mme ------------ (Maryi-arA & D C .) ------

Newark ------------ -------

PhuuJak,h . : ------ 1 'S .-

Portatnegh . . ---------- (SM (a) below) ----------

R~hm- _ 112,-)----------------

Wenn'ton Dwil .w.) ------- -

SoAdhaunit Region -------- ------ ---------:-

Atlanta, -------------- (Georgui) --------

B. .ngh

Court is" -------- -------- - =%loh")

Gmentoom _ -------- ~N.rrl Carol-)

Jaci,son --------------

jiloksornnhe ---------- (Flo,da )

Naer0le-------------- (Tennessee) ------

Carmel Raglan _ --------------------------------

cl~ below) ----------

CCI=Len'di ------------ IS- Id Galore)

Cabot ------ _ -------- (M-ifillon ---

Indanapon- ---------- jindw-) ----------------

UOutunnIll . ----------- (K,ntu,ky) - ~ -----------

P.Asnotbeg . . . __ --- JWMI %firginia) ----------

KM-' Refute, ---------------------- -----------

Abeldeen ------------ JS.Ih Dakota) ------- _

Chi..W _ ----------- (Sao (b) balow) ----------

Gas M- - --------- ilow") ------ -----------

F.M . _ ------------- : North Dakota) _ : : -------

Mllwa .k" . . . . . . . . . . . . IW,-h..n) . . .

Onrana INethnaaka)

St. Louis M ---------

.

)

St. Paul -------------- (M:=.)

Spfln,pield ------------ (Sao G) Gfrowl)

Southwest R.91 In ------------ ___ __'

. _

AAbuNerq,e ---------- (New M%~~), ------

A,stin ---------------- (See (1) In

I

Cheyenne ------------ ItAy-ng) ---------

Derail -------------- - IS- (1)

be-)

Dem'" IC oraM) -------

Uris AMkanser) ---

14- Orleans ---------- OXh,_a (U-Sainit-_

Cry IOk horns) ------------

wionw __ Ka=) ----------------

West- Rglo ------ . . .. . .. .

An age __ IIMM'.

to-)

Heigne _ ------------ (Montana)

Honolulu -------------- (111w,k)

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

L. " a ISe (a) below) ----------

An*

Poma - ----- I

As. _ --- : : : : : : : : : = --------------

San Ulke Cry -------- (Utah) -------

San Fneric.

')

"'wi----------

Sears, n

Wean, gt- 1

Got- *1

Omm.

Pue"D 0 - - --------------- _ ----- Ri- -----------

Gift

le.

(8)

Empmy lown,. Ekampt

OXIZ

(9)

386 .802 25,023,074

55,257 3,595.918

2.7W 204,496

1 .776 132,976

1 1

:52 615,69,

1 W 687,930 6

. 512 42B 387

N2 72,121

':'

14 3W .730

35a 850.903

10 W2

':5" 114 149

43 .754 3=93

8, 311 540:240"

1 1 0

748 744 3!17

4,7. 4

1

8,6 2 568~oul

55:1 3 73.~ '

will 31MMO

'~133 617.915

60 4 .49 6

329,121

f, 42 65(31918

2

119

2 5,563

AON

1

. 1

511 .4"

5,44 497.21 .

42, OSS 2.979 .601

B."4 .6 9N

It 622 300

1 1 :3NO 9 1338 58 3

6.678 5 `,:953

4.481 3 .951

1,923 1 3.026

72,171 3,481 .617

2,00 96 .702

16,499 828 .11 4

9 . 4 381.480

2 :~1~3 1 95 56

G 7 5 : 7 1 GO

':"0

24,' 6

.212 561 .172

7,2 5 O.D56

7 76 Z140.376

56 :913 3,"1.13 2

1

:17 13 .450

14 0~2 84 243

6 63,2113

11 :2,57 720,921

6236 336.685

3 :596 247."7

4,523 439200

5512 334,436

85So 312,144

1101900 4,101011

US 46,074

1 93 IWAS1

3:4'3 -34

2.141 941 .5 :4.8597

3 22~4 .502

1,1130 311 .112

1,383 7

. '~7

2.

Sit IU

:489

14.048 1 .0 9 ."1

6.434 4 2 .829

"'1 184 .3

65 1 72088

669 12 :220

(10)

Eloplay TF Eciw

Plen. Am... We.

(11) (12) 03~

%.pp .

(14 )

5M.166 Ilullow 557,914 9011,853 5 .876,725

15,126 21 327 N $67 ".541

7798 6 7 ;6 8 .945

' '1'

4480 7 .526

4 :376 9~373 16.178

48,119 '~1 6 0 :37 .60

24,495 1, 633

2.537 2 :4

22. 11 :217 G. 7 :~41 .'

97 18,126 . 682

4 4W 703 4 SM

4:332 11 :977 2:.0

451,465 261 ~1:1 50.80 am

27 7.02 13:695

50,41 ~5 13 W7 2 287

46,119 1 , ou 23,893

25,8 7 TWO 17 " 22

59 11,642 lg~Gl,l

451,4T5 ~:113 9"

2~

5:2

JOG 0 7860 130 Soo 16~24

107 10:489 20:705

a 10 752

~4 701

6:7631 7:02gO 3

19,9 12,476 23,327 :26

5 .100 8,683 11.854

21,017 21 0'

.318 25,878

", 251 10,538

20

.866

1

56,386 157015

77,426

1

22, 7

27,036 23 :343 10028

13 .96 37.59 1 15,680 224 :13

14387 49,963 21.9~ 33 4419

- 307 12,920 30 I:379

0:4"S 10 n 13676

4 .aB9 6 :16 7 :46

238,20 101.074 167 '97''

. 536 3,768 7,135

24 6M 16,618 20.747

37 3138 9,529 21 :2

16:1 29 3,033 If 263

35987 23,735 24

,

734

202 im 5,53, 14."2

8 7358 2

453 N 1 :975 :908 214=3

24,MB 9,294 17.478

132,010 0764 149. M

1.523 2 :4189

292.8 32 .211 28S"l :.u

1 :17

~G:4"11 4'

1.

342:.

16.967 7 .4 14.845"'

9.OW 4

. 7 1

614 14,361

2.100

" .3

:71

~3 9.48289 17

1

13:32o 7,217 IT 89

32.ITV 2U,224 93,117 87 I"IsM

1 .1 3 2,278 4558

GAO 3 6 .626 B.Ml

.841 1,691 633

907 3 2.S23 g:2

17 .4TO

11

0:299 21 .266 40 ."'27

17.797 6.6,6 8,112

73 7,721 173 1

:7 1 2.205 5:27%

4,924 2263 724 9

14 .719 78 .239 30G:;71 46412

- 22 .924 58 26:498

257 266 997

2 242 31

255 24 G

.

2

Total, I , S Mae inn shown abowi,

(a) C ltontia__ ------- 33,148 91,300

III ho -------------- 24,262 1 :',60,4W

New York ---- ----- 30 ' 304 2171,71 6

(d) Ohio ------ --------- is.374 ~ .069 288

(a) P-yWanu, -------- 14 .492 "Wiii

(1) Te,as ___ ------- 25,3G9 1 .569.164

32 .189 '88538 51 .436 65,418

47

'~7 :156 25,912 382 5

. 0 36,915 4

1

:403

40,999- 7'60 .9N 25708 17,5 . M I

7~543 4,.699

- 59,277 43,163 61.405

al"'Wo 3 7

2

' :3

238

i

2 8

7Sit ~ 70 112 2'

11,921

212 7. ON

22373

21 .075

111 :22'

I N

G~2

203 .253

17 ; :12

113 '0 ' 1 '

78.7557

ale,

103.23

5 871

1 09

:621

44

10

37309

318.5,0

147,460

746,764

~'711 4

229 64

1 13,637

66,346

28,899

807401

23317 Sa' '~224 .029

11 :07

'24 148

50 .777

~O 748

1 .129

67728

"al" s

3 S34

231,470

'713:.171

. 62

09.778

49209

85.508

'2

:2"

7

.

211

1'03525,76-1 .40

24 .898

3ZO58

34426'504

S.:017

115007 2"2

20

.

4n

35,545

252,135

100,73 6

Iii'm

17 3

. 761

596232

300,952

482 .1 V

308,338

262 197

410,332

I

I
134

Table 8--internal revenue collections, costs, employees, and U.S . population, 1948 through 1977

Fixed

Year

Opwarting collection . Coo of

a w1j

Ixop'latio, Tax -

.

(Th-sandl.) per Tota l

(1)

Slob Pit.1

(2) (3) (4) (5) (6)

;948 ... ... . _. ..... . ... .... ..

'94,9 ----------------

950 . . . . . --------------------

19M - --------- - ------------

1955

. . .

195

7

Me

19M --------------------------

;gel --------------------------

902

1 963 ---------------------

964 . --------

1 965 --------------------------

Bell ------------

969 -------------

970

'7 1 .72

~973 --------------------------

IS'S114

;97'

B77

183,731,060 41,664 .5,12.295

209 .WS.715 40,4r3,125,019

2W,408.200 38,957.131 .768

24 53 50,.5.686,315

2751 :.'7'2 :19'2 6SO09,585,560

2W'590'806

69,686,535 .Wg

26':'49 :21'7

69,919.990,791

21B 83 76 66,288,692,134)0

299.894,710 75.112.649,OW

305.M7,814 80,171,971,000

337 :42.1.2711 79: 97 476,484

36G 4C , 28 79 797 .972,806

30,735,359 91 .774,802,823

413 .295,238 94,401,086,396

450,080.420 99, .O .Mg,245

SH)AD4.314 105 .925,39S.281

5,19.692.131 112 .260,257,115

597.387,471 114 .434,633.721

624,661,929 128,879.961 .342

667.080.295 IM,374,814,552

699,190.304 153,616.07,665

758.785,475 187.919,559 08

886"59,lu 195,722. 095:~97

"':'5 :'7 191

.647.198,138

1,127 390 411 209.855,7W 878

009 94 23 717.204 058

7:

.G

:

6

1 :312':894 :6651 268 2,253 63

'1 .584,711,486 293.822,725 .772

NumWr of annisloyses

National

Office

Field

(a)

(7)

044 147,2118 284 .39 52,1 U 4,662

0.52 149,767 ZrO .17 SZ266 4,55,1

0.59 152,271 255,6" 55,551 4~303

0.49 164,878 325 .71 5717135 4,030

0,42 157 .553 412,62 55 .370 3,M2 0 38 160,184 4W.M M,463 3,834

0.38 163,020 428 .89 51,41 1 2707 042 165,931 399 .50 50 .090 2:675

0,40 168.903 444.71 50,682 2.583

O'M 171,984 s66 16 51.364 2.602 042 174,882 457.33 50.816 Z638 044 177,830 ~ 73 50.200 2,633 040 160.671 507.96 50,199 2.702

044 183,691 5t3.91 53,680 3,031

045 186,5~18 0309 56.510 3,357

0.47 189.242 559 74 59,486 3,M2

0,49 191,889 585.03 59,357 3,753

0,52 IK303 588.95 60,360 3,790

048 196,560 65568 61.689 3,816

0.45 198,712 746 .68 SS,122 4,060

0.46 W0 .706 765.48 6SI77 3,939

040 202~677 927,19 64,507 4,037

045 2.,678 955,31 68,098 4 .356

0.51 207,OS3 925S3 68.987 4.521 0.5, 2013,W 1,O(NI 83 74,086 4.823

14l) 2109410 13111 71.846 4.646

04D 2 1 : 111 ~ :269.24 7B,233 4,685

054 213.559 1.375,M 82,266 4,960

47.481

47,712

51,246

5VIIS

51 .528

49,629

48,70,1

48 .21 5

481M

4B,762

48.178

47,567

47.49 7

50,649

~. 153

55.924

GG'Go,t

56,570

57,873

61 .062

61 .230

W,470

63,742

",466

N,263

67,200

73548

~31)6

6

1

311,689 302 .519 .791,922 0 .56 215,142 1,406.14 85,712 4.9. 80,768

:8610 :414,1133 358,139,416.730 0.51 217.329 1 .647.91 8,1,414 S.3 79.37 1

* This figure nowesenta ad,ai IRS oearaterg cests for FY 1975, 1976, md-i a of ennw,58marin neesta,ed tion, 0 he, agenens; for serrices Weninligitess

le, loseal Year mor to 1975 rney in som, es,es-wes, mirnbunannewes . those tonwnis I I " Whearnly -all - --to afte, in . -1 1,,tnes s, col,nn, ""'Is3 Its W-trV

13 5

Table 9-Number of returns examined by class of tax and by internal revenue regions, districts, and other area s

Region, -1.

and district Total Indilidual Fid-Its, Corporation E... Gill,

2.113:131 1,892,786 "N", 167,659

.1GS41 21 23" :G" I N .20 1 . 324 2:r

344,930 273 .401 1.427 20,113

225757 17 21,018

306:892 2322 :','.' 1: W" a 25 .094

211 "7 3" :171 20 149 1 .007 16,681

47425 1 .698 22,983

25 .216 2 293 4

17 14M7 67 5

;1 62 7894

499 0.8215 31:3'39' 373 6.567

96,05,1 81,605 145 5.948

42, 15 33,675 247 3.32

5 531 4.509 15 33 1

31 :60 24,583 351 3

. 0"

V

. ill

64 56" 604 13 .712

1., 0' 1 , 00 59 930

7,

4'1

5 0"6 33 9115

1 .4

14.6142 1'4 '61'4

377 196 756 828

42 .MO 1".84 $4.931 I Be G'M6

1 "14171 :"9 700 1,972 1 : . :141 2,132 11,090

.9 '7' 3 1,669 Ij 2 .. 1 .655 9

:711 2.5'41 1 39, 1,369

'4 :3~" 1 1 .7 1 :24 1,751 1 :0'232 1,71

. '

:4

7,743 2.192 14 .162 2

,

14

1

.370 85a

4,794 '1 :121 11.2" 20,376 1,482

64n5g 6,636 31 1 713 11 7 951 , G 2 :1

337 40 3 75S -

TOW1 ------- --------------------

No" -All-11- --------------- ----- :-_ :

"~Athx ft-- ------- -----------

Scenti,exed --------

Central .

lifidenest - ------ - ------------------

Soulheare ---- - -------------------

West ., - ------------------------

Im,nieflonal Oper.ti --- -------------

N,ft-All-tit, Region Atoany :

---------

ftg Go ... --------------

Itton ~ -------------------

Bl,l,ngt.n . ----------------------

Harriett! -------------------------

Manhattan ------- ---

P . .in

P-d n - ------------------------

Ando- Sm- Center ----- --------

Bnw M,en Ssn,i~ COM., ----------

Mid-jusenti, Region kt :

Beturnins,

N-tol, -

Phitadelpina

P'ftsW,gh ~

Ricinnendl . . ---------------- - ------

WInIng- ---- -

Philadelphia Serlie,

Southeast Rglo :

Atlanta -----------

Gneonsb 0 - ----------------------

I ..k,.n

rbet-fle ----------- -------

Atlanta So-a C.nlG- --------------

Mention, S-e Cent- ----------

Centnal Region :

C n-nat- ------------------------

C -.land ------ ---------------

Coined ----- ------- ----------

Inthanalool - -------- ---------- ---

Lo,ix,4a - ------------------------

Cnann,h

Mld.ast Region:

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

Fargo -------- -- ------ -----------

KW-k ----------------------- -

Orion, Is - ------------------------

S .Lo,,s - --------- -------

S . P..I ------------------------

Sprn,gf,eid ------- - -------

hit"'s C" S.- ------

Go,thentat Region:

Al . -q - ---------- -----------

~shn ----------- ---------- -- ::

Chaye he --------------------------

11 - --------------------------

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

Let . Reel, ----- -------- --------

No Orl - - ---------------------

Oklahorn' Oty ---------------- --

Mch-- --------- ------- - -------

Wases A,sen Sm- Cents . Region : -----------------

Arnermage----------- ------ -------

Bose

H Wa----

Monoisdu - ------------------

Lee Ang I es ------------------------

P -- ------------------------

P land -------------- - ------ - : : : :

Reno ------- -- ------------

S h i-ake City -------- -- ----------

S :,, F- - - -------- -------------

Searle

Ogden W~ ;C~;OeWer

Fnesnot

S"Ice Cents . .. ...... . .. ...

33 862 -

1, 22' 2.911121 1.041

'3 446 1 .836 373 1 '

.8 1

738 219 1,453 2:53'2 -

68 25 238 34

i,iB 328 B47 1 261

23 676 1 2

`

'0' 03

,12 4 2111 B2

542

116 20 291 20

~4 46 ,;I I .521 272 3 .1119 BI G

7~ 7 $7 59,96' .217 333 B.095 262

41. 12 388 6,093 93

21A .

I B

403 2 .635 8717

394 :411 9~1 289 112 3.2B 64

31202 B 1 671 16 1

9 .769 1.769 - -

58 4 159 3.218 618

27

:'.,", 2 1 6001 11 ~ :751

21 2'5

916 17

:3

. 7~ 570 323

4122 :71 1 ~ 39.271 189 3,12' 762

112 17493 50 Sit 260

BG 0 7 3, 8 62 702 6,605 00 6082 , 523

34 .595 26,858 162 2 283

16 595 16 '95

5:34 5 :3

946 61"1

2,7 37

476

Bil l

591

768

60 1

44

'

32,819 24,043 188 3,318 658 13 1,433 2.144

'51771 B63 46 G02 32,618 367 5 00 1,401 327 2.265 2.BN

69:043 55,102 .263 . 675a 9 0 2BI 2 176 2,829 221 440

3 26:G2 14 ~1 2: 4 2 948 122 1 .792 3 27' 0' 1 B 1 ~ 1

24 :74 7' .933 ' . '87 126 694 1:7 1 B G '

67 6,764 75 1,159 161 37 356 013 6

6,069 8,069 - - - - - -

7 .215 5.591 16 339 211 1 3 57 242

605

98 .630 78.930 B

. . G"" 1 85,

34 2,098 5,038 339 3N

10 1 198

211 1 411 1 7 "

'

23 .135 17,016 11 6 1 5

2

2 .,

425 5,413

35 26

2

07

5

4 :T 66 3 '0 1 2 14 3B .N2 27 256 3720 7 7 1 1 B ':7

15,737 10,373 '913, G 1 213 1~32;4 60 37 :34 722

016 352 2,119 23 B:3 6 4

46333 33,259 0 117 251 7959 2 N 2

5

7

36.005 21

'9'

246 2.M' "1 '42 1 .44 1

23,635 16.1) .6 133 1,403 972 2.136

12,W 12,547 - -

9:131 7,287 34 470

GG GO 46.306 321 3.731

34

01 2

.666 4

215

55 .89 40.066 280 1521

26,737 20029 89 1

:GG.

1 1

:231 12:217 46 1,330

2B

'II. " I

Q 56 1,880

26 :~353 20.2B

" 13 ' "

~4

5, , 7

G2 94 1,86B

14,488 14:488 - -

7,880 1 :411

7,280 G 61 3 17 30' 420

7 .740 6 .064 2B 483

' 7' 6

.857 40 762

B 222561 687 9

. 52

145 8 6

25. 36 22:076 122 1.20'

17 1]:~11 84 1,19" lG

:55'7' 7 36 578

11 .766 9,251 8 54 927

110,229 " 36 487 5 .341

30 M9

22,

G" 136 2238

15 6M 15 .

M

- -

32,900 32.900 - -

91 16

1,242 36 2 .G12.. '3 :"' N

95 3s 139 24'

39 346 4 '458

5 .

144

4,9 130 2.252 212

252

" ' 17' 1

: ,

475 137 1 ~ :723 2.34'

534 183 1,498 1 757

607 158 1.856 2 50

G.P'= E.. .Pl

Organism- Employee

E. .W. no I I. .. PI. ..

3 4 351 6 1

1 3 IS 253 12

1 36 34 445

G'O

98 4' ' "

466

2 .548 512 3.013 6,466

440 100 4

.

470 1

13

:47'0

76 77 35; 58,

124

20 1 34427 '9' GO 2,873 4.43 1

674 55 2 .430 2 D3 2

502 1.425 3421

416 2.W :620

224 1 .263 2,926

21, 'g4 1I S.11 1~:1'12

.78 30

38 279 519

422 2.18A soig 800

1 :7 0

IN

7B GO.111 ~.

B 8

191 2,496 3 :1 0

140 1,170 189

115 4 .147 U

`4

Jill 1 , 7N 2

.789

8T4 3i2

588 355

367 277

299 86

285 96
136

Table 110~Addltional tax and penalties recommended after audit examination by class of tax, and by internal revenue regions, districts, and other areas .

(in thousands of dollars )

R-gi-I th"'Im, .."tan,

and diottict

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

-`-AI,

.~,,W

- ------ ------- I . . . . . .

Mid sox .Athan't -------------------- ------

.d"it"t

Centra l ----------------------------

Mid-. ------------------------------

South --------------------------

- I --------------------------

Sahrod - ---------------------------- Witinniathad-I 09-ZI. -- --------------

NMIIA"'M

C

.a

;

Amany .. .. . ... .. 1-1 -------- -----

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

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

Breakly" ------------------ B . .. . ..

." .1 --------------- ------------

Sud,hgtW

Harbord -- --------------- -: :_::-:

Manhattan ------- - .. --------------

P ..In -------- ---------------

p Once . -----------------------

Andoner Se,iM Conod .. .---------- _

Brad haxer, S-So, CentOr . .........

M kIc6AtIaMIc Rogion t :

8.11, - - --------- ----------------

N-thk ------- ------------- ------

P dadelphu, ------------------------

P

Ph"d" adelphia S-c~U;W~; --- . . . . ..

B0,11mond Region:

Anenta ----------------------------

=1 ----------------- -- ---

G-0 --------------------------

Jackson me ------------------------

N .Md"d

Atlanta SarvWj -6 ;ie,

Mon".S- Carrier ------------

Control R .C, 1-:

C'.Mmu,

0.1.11

Lou-11 - -----------------

parlumb,,

.Qneuhnxtul&~W

10-1 1~91 - - - --------------------- " . . .

C

.=;- :: ---------------------------

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

. . .

Ontario "- --------------------------

St. L ou to : ------------------------- . . . . . . . . .. --------------

St. Paul ----------------------------

so

=', - -sewmw

South- 11C".01-

Ausad _ ------- ------- - . . . . . . . . . ..

..M --------------- ------------

Lim, R.&Z- : : : -------- : : ------------

N- Orin he ------------------------ Oklumanda City -------------- W1

Amami SOrViCO 'm "W ----- --------- ------------ COMO' . . . . . . . . . . . . . . . .

Wididanth Rogi :

Addha,ag ------------------ Be -----

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

Honolulu --------------------------

L, Ar!~------------------------

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

porither" ---------------------------- Ratio

San

S hF - - ----------------------

S: ..

Man s he ;WC;; 6;niw

San" center

Total IndIxid ..I Rotuma" Coradtiflo n

. .,A3, , ..9

1,003.916 261,518 2,106

6601152 210.02 I'm

W7,7% 234.541 3,474

481,75 1 164,217 15,39D

785.7m 20Z716 3,4711

56370 195,750 2,3118

ow~w 328,121 18'a"

46,374 21,553 -

52 Wit

22 :839 S:6251

135.M6 45,37B

123,117 51,420

103,138 14,952

63470 2,011111

5,642 13 .991

_A85 .108IU9

15,221 5,199

12,502 3,082

2,465,510

576 .3M

340,001

323 .217

210 .799

427,222

205 .055

357,408

17~385

57 22.815

66 15,992

626 71,567

481 42,5xI3

45 76,073

1 1.025

369 34,609

430 294.61 5

21 6,647

9 8,239

-

Employ.

Estate Gift E..m ."t

E . irp,

Cog I.

-i.n.

sv3sa n,461 Ta'In 162.4n S,M

103,Wo 14,399 7,M 17.662 32

61,95) 10.614 13,744 21 .801 31

64,479 7,963 10,278 22,614 138

49,376 6 .000 11,463 iii'm '74 1 : 5

83,524 15.08 81617 .3.1181; 701

122.295 10,931 7,641 19,170 53M

1",SW SIMI 13.320 20,953 ill

4,S26 184 113 2,613 -

20,515 369 98 503 -

1,115 1,259 69 57 -9

8,206 931 2,180 6,079 9

22,286 1,771 795 3,783 38I

11 .520 796 1,350 1,402 -

167 14 51 124 -

8,782 5.9m 1.039 929

32,437 4,272 1 .152 3.511 219

70 57 35 499 -

797 207 34 13S

-

- - -

10,302 10,302 -

15,397 15,397 -

87 .110 39 .408

218.694 66 .053

I M,316 39,278

89 3D7 18,054

5Et372 22,272

13 189

12 W 2: 80

105,507

45 .21

28.2 W

541 0

2 :4

255.734

79,3895

13.758

14.Ug

4013 33.~

740 124,711

211 76,790

76 62,100

- 20.375

- -

12 22.691

34 .760 755 51.85t

15.4. 4. 20,sW

12,011 40 101561

25 OM 215 53.685

1 3 12 2 1020 1, 1 6

"

:~42 5561 M:31 8

22.848 84 42,996

13

14,Zt4

.758

9 - -

59,522 19,826 261

1 58 86 41,491 11 .962

1011:58 45 666 727

17. 115 21 :41 3H

~'on is 963 57

229 Us 9~084 16

:724 9~724 -

9,234 4.245 1 4

306,842 n.549 1,457

61 556 1 7 9 :19; 93

:579 295

1 3

7 171 15,760 56

39.602 9,997 62

152,448 23,106 1,393

n,5,t5 26,M7 231

41808 14.698 159

1 0 .971 10.971 -

3,256 5

1 VNNU 42057

3 , 140 2 :103 ..22.

124 .558 "li 905 I,oN

60,179 20:065 go

52 .112 13,234 46

59 .728 15,626 239

U 737 18,409 155

50529 16,879 140

15,187 15.107 -

21.569 5.670 22

12,348 3,687 11

7 8" 3,946 7

, 5 IM5 5,705 324

289,103 128.336 814

42167 14

39, 58 831 14

43642 22.353 104

23,369 14.555 10

251,716 66,000 16.302

76060 22.396 296

1 957 11,957 -

6.6~ 16,6n

9 .557 i..S 316 2,615 26

1 i'mo 395 6,869 8.392 4

15,556 7.049 4.945 6.486

6,407 726 558 1,3N

1 I'am 616 966 2 .6%

7,585 381 90 22

- - - -

6

6 .303 991 5,769 4,003 1 .072

s.997 1,s. 214 1 .6 -

4.130 3M 272 %14

10.123 1,429 5N 4.685

:3 1 467 iSeq 205

237832 2,355 1,417 6.066 66

6.792 1,160 1,697 3,492

- - -

- -

28,553 6,069

74 .310 15'.0

46,g&I 7,306

2 .374 8,99B

37,695 Cm

10,840

- -

1,0613

446 587

1,138 4.540

1 .423 4,606

2JW 521

562 1.112

246

- -

67

2,828 1.120 727

181,968 28,35,r 7,431

28917 9,737 6~

3 .764 2,315 295

36 .723 5,244 767

18,183 5,412 1,223

100,2015 13~991 2 .040

36 .4T7 IOS91 1,.7

18,227 6

- - -

.661 976

1,326 771 39

32,529 53 .112 5.40

615 6U I

47.270 2 018 1,935

27, 298 ~:931 166

11,100 24,692 604

35,186 6.601 321

23443 9 .531 1,674

26X6 3

- - -

.955 590

12,087 454 is

5,368 2,693 200

2,258 1,110 148

7.030 IAOS 7

90,890 52,752 636

I&N, 7 1,2W

9.610, 5:7'26 4`48

11 .965 7,7" 534

5A92 973 139

142,087 1013n 642

43 .800

- - -

7,295 1,526

2.009 1 S91

3,U4 69

11881 25

3,26 5

1,608

1,535

- -

36 26,1 -

I .SS5 8,492 36

612 4.4611 -

0 172 -

699 16,922

3.473 1,252 -

1,395 10m.4 B3

461 1 .31 9 582

323 76

- -

"

228 741

171 2 .243

'S In

1,210 2 .961

2.108 8.521

1,718 718

617 1,138

497 1,028

542

- -

IA N

1,162 2.159

52 337

1% 217

76 81 4

8,418 5.875

2 6 1.W7

321 1,025

650 392

229 1,771

991 5,46 1

i'mi 1,595

-

27 5

-

255

-

-

374

-

656

at

1

137

Table 11 ~Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases )

St .. .

A . Progress Of work

Nuttiest .1

N.raboar

P-.Ry M& M

(1) (2)

Anne-' .1.1" id --- -god

holtridl Ithoustancl dalled.)

(3)

10 9W

. . . . . . . . .

. . . . ..

20

.8 2 3 .734 .40

P ndxng October I . . . . . . 20,00 2 .026,791 4,15043

FI:-ad . . . . . . . . . . .. . .. . . . . . . . . .. .. . . . . . . . .. . .. . . . .. -

21,148 1,427,303 57,961

Ditipchoxod 01, tormil . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . .. . . . . .

".872 1,038 7 51:6 2

a, Witard 11 . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . '98Un

.

. . I . . . . . . 2.482 58 : M 1269

SgMadj ((>,or... aae-rht, clags, e,a,e, employ,dent, and ofl,r,n conp, I I '"dothe 1,018 45,928 -

8,

-P

.y .r d ISO an Statutory n 254 .424 -

. . . . . . .

. 2,776 By peoub, in.

Tax Cu.-bruith-ml 1. d-read SW.S

19.7q7 4.333,9311 100.357

P-ding Sept. 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. .. . . . . . . . . . . . . . . . . . * . . . . . . . . . . . . . . . . . .

(prop)

B. Results obtained in disposition s

Mathad

Didirtionq

rat!

A p(pin_.1jet.=g. J11..rat)Ib n

0 .41 .1-cy Ox.,

and

of mortat, Penalty .1 -11

(1) (2) (3 )

. .. . . . . . . . . 21,140 811,014 6611"

Djaposaid of, total . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

14 .872 .6343 65.124

By tighemnand at

. bj.Sh., -plyratad, and mrf-d -pl-,S- 1-to tort . . . . . 24 2 W:180 1.053

Us"'""" 'O"T""

teary

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

. . . I

:"' 38 :WB

-

taxpayer d .1.0 ad ant ohm 2,17 273 98 6 3

By ponedy, to the Tax C-0-1-Stenod 1, dook-d Status

Table 12-Appellate Division receipt and disposition of income, estate and

gift tax cases petitioned to the Tax Court (docketed cases )

A. Progress of wor k

Ste..

A MM-- .-I(sh"Sod In Statutor y

I-Stand doiliSh.)

D.-

ol .extra, mt. ad So-S.

of cam P- .Ry

(1) (2) (3)

;9 is, 2 387 00 0 Padd,hg

Ascended,

O~ . 1 2 :260 M:672 NA

W .1 .. . . . . . . . . . . . . . . . . . . . . . . .

POhtx,Mr idea in harporl . - 73 406.557

Dedrici Dereetars Statutory hationt . . . . . . 22 :531 2111,315

Apoollato Dh,ituon 3 Statutory nammate . . . .

. . . . . . . . . . .

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

-

511 .839

DI.priioxcl of, total . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. .. . . . . .

7,437 4

By .,buhhoo gr.- .ht,,,. . . 'N . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . Iy 9

- - 4 4 . . . . . . . . . .

. ~,M NIA

8 byin. T . ul -Pay.datitull

.~ .3

. . . . . . . . . . . . . . .402 56

Thed baterat me To, Coun on In. Monte . . . . . . . . . . .

.

.

.

Pending Said . 30 . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . .

Mothod

B, Results obtain d in dispositions

20,2M 2,553.033

In

Driffidiency

NiMabir, 1. W . add Sed=

of daroarit pimatity

(1) (2) (3 ~

22Z424

Di.paroad at Irbil . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .. . . . .

. 1:42"7 126 .034 WA

By Subudetej gr,-nlCo. . . . . . . . . .

. . . . . . . . . . .

. 360 12 .434 . T S

By chernnual by Me g: urt or .pay. ollituft . . . . . .

. . . . . . . .

Thad boden, a Tax un a me theint'

1,402 83 .956

I Rearesents amounts petmondJ .
138

S,

Table 13 .-Appellate Division processing of all cases for 1976-19T7 (income, estate, gift, excise, employment, and

offers-in-compromise)

StatPand, intrang of fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Raceill"! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . - . . . .. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dispow-1 W. total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number 0 conows

FY 6.30 Fy 9130

M 1 38.973

3 1 1 '1~ 32.351

29,096

20,811

na, Ixo3e, amployptent. and off-i-pnonma, ral-bons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 924

By taxpayer dOadl or, statutory notice or dismissal by Tax Court . . ~ I . I .. . . . I . . . . . . .. .

By part an

to IM Tax Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.975

Tnedm'me Tax Coad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

.

. . . . . . . . . . F I . I . . . . . . . . . . . . . . . . . . . . . . . . . . 1,407

Pending and of 11-11 V ser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,969

Table 114-District Conference Activity

R.x-.

Agents

Tax

Audit31.34 7

22 309

2:482

2.3 -

2,1 ;

1,4062

39,077

FY 11ri`7

Total

Cases "antling Otooloo, I . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,620

C .- P-i- 17097

C .rl.an .e Completed 18631

8,133

3000 3

30.3m

Numbe,Agreed 11

634

22.86

Ageed Is , percent at total 62 75 I

Co. . pending Saptembe, 30 . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . O'Dea 7,027

Table 15--Overassessments of Tax Exclusive of Claims for Refund

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,763

"7 .100

4894 0

34A96

70 5

15.21 3

Am M R-orme-ded

Number (thousands of douill,n )

1976 1977 1976

137,6119 122,003 S209,100

109264 94 .799 96171

Fiduciary 1,5139 1.128 7 123

Co',pa aton 11 .667 12.360 133216

1 17 1221

6 " "

"

G,tl

Employment

4.787 3,710 5 59~

3 '538 4,229 10 .733

19"

S280 .51 1

83.055

821 1

130 ~9

35 2,19

2.2'

5

5 . '513

15.554

139

Table 16~Work flow In the Internal Revenue Service, and the courts, fiscal years 1976 and 1977

Raturn .

1M Is"

Tax MIMS filed, total . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127.6152.21111 133,684.5"

Wividual lineorm M . . . . . . . .. . . . . . . . . . . . . - . . . . . 02.577 .435 85,611 .19 1

D.d .rS- .1 Is. . . . . . . 7 .865,4112 8,058.480

Fid.atery . . . . . . . . . . . . . . . . . . .

.

. . .

. ~

: 61, : 567 13,12.702

Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IN 699 1072M

.

. . . . . . . . . . .

Co,porid . in be - tax . . . . . . .. . . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,16970 2,247 111

F~w. tax . . . . . . . . . . . . 241 :U55 246:316

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

Men 386'802

Gilt W

.

. . . .

24 .8t .676 25 .023074

EM"-lWes . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . .

. 0 554,166

Exei "' on . . . . . . . . . . . . . . . . . . . . . . 603.48 7

Enn,paiiFlans . . . . . . .. .

52"'M 1 .321.000

9193389 557914 ATF Ral.. . . . . . . . . ... so .090

Excise Ias as . . . . . . . . . .. . . . . . . . . . . . .

. 9DO.863

Suppi-tal D--rta . . . . . . . . . . . . . . . . . . . .. . . .. . .. . . . . 'X8.513 5A76 .725

I-S, Eserds, and Gift Tax

Number of easnat examined by Audit Met- . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - .. . . I . I q . : ~ . . . . . .

Returns Mal, V4straml proposed by Audit Dmidan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .

Dsposal 0 by dit Dimson:

MT

or

Iga data Ited! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

adjo Appollaa, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other . . .. . .. . .. . . .

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

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

Due So local year Wange in 1976.

-perem, figures are net axatlable

CMI Tax Cases

2' 125 IN

1 .611 :57 9

Courts of Original Juroddam Tax Court

Total Patitamed to Tax Court . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ;360 12,2

Damnissed . . . . . . . . . . . . . . . . . . . . .

7,209

1

7~390

.2

10 1

.256 '.YY . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .

. . . . . .

. '

.070 .483

Dmtw Courts and Court of Claim

Table 6W in Dmot Courts , d Court oil Claims . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . .. . .. . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.033 1,152

SOW in DistriO Courts and Court of Claim . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . .. . .. . . . . . . . . . . . . . . . I I . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 532 446

Decided by Dtand Count and Court 0 Claims . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Q2 451

Courts Of Appeals

Settled by Courts 0 Appeals decision . . . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . . . 299 237

F - bl: 0 gonnim. I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . 231 1"

F

: 'er:o,

So taxpayer . .. . .. . . . . I . . . . . . . -- . . . . . . . I . . . I . . .. ~ .. . . I . . . . . . . . . . . . . . . . . . . . . . . . . I . . . I . . . . . ~ : .. . . I . .. . . . . . . 56 40

Modified . . . . - . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . I . .. . . . . . . 12 33

Sur'TPn'9Y Cou n

S, panitimrs far Certiorari ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..

Ura 2 4 d;!,Ww 44 39

G-r-Ipetition. to, --an . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %,-!,ad I

I

w - -

Settled by Supreme Court debution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - - - - - . . . . . - 1 5

Fraud Cases

Cases initualad by intelligence Diy.- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 0,035 8,901

Disposed of by 1-111g.mis

D ,

p rrxmdxl~ - n :

P~'- : ~ ~ : : ~: : , , * * , ~: - , * * , : * * ,, , : :

314 7

asocabon . . . . . . . . . . . . . .. . . I . . .. . .. . .

. . . . . . . S:650 S459

Disposed 0 W Office of Chiel Course!

P Nounion not, warrented . including oxises doomed by the Depart toIJustax, . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

P=.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 2,508397 2 .181

V

I

I
140

Table 17.-Amounts of revenue Involved at each level of the tax system, fiscal year 1977 and the preceding 12-month

period for 1976

(Million dollars)

loss",

1-1 --ollection., tow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . . . .. . .. . . . . . . . . . . . . . . . . . .

lwmww i-. uniuss, 1-1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

onne, 00tholdelp . .. . .. . .. . . . . . . . . . . . . . . . . .

. q . . . . . . . . . . I . .. . . . . . .. . .. . i : : : q :

Conobvido; in ." taii . . . .. . .. .. . . . . . . . . . . . . . . . .. . . . F

. * * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * . : : . . . .. . .. .. . . . . .. .. . . . . ..

E, turd I ae as . . . . . . . . . . . . . . . . . . . . ' : . . . . . . . . . . .. . . . . . . . .. . .. . . .

E . . . I. be . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . .. . .. . . .

Inconfe, Esdate, and Gift Tainks Civil Cases

T. and ponatties, determined or junflarninnfur, T . . C ou . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . .. . . . . . . . . . . . . . . . .. .. . . . . ..

Tw and penalties denturnined by T.Court deonsions :

it's-ionsol Decision. on nrett a

T. and p"bas clat"nuid Waoided id by the S,prenro Court and Come Of Apipw Is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Arepurd in dispute W paterns as a nefult of final acom an ei suite . . . . .

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

Fraud Caere

Deficie cedenisions : PrOa=00n I-intinded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Prosedin. - -ardecl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Table 118-Requests for Tax Rulings and Technical Advice (Closings), 1977

Subject

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

Act-nal R&O It are ---------- ------------ ------- --------------------------------------------------------

E-pl 0 stron. -------------- ----------------------------------------------------------------

Enlroyee"C'.1 --------------------------------- -------------------------------------------------

fil

310,623

wAa9 12 :758

37 '31 6

457,432 4

76,6IS

I?A9-9

115

4125 1

609

IV"

358.139 186.755 - 672 42~0113

60 .050 7,4 1

.6076

17:11M

IZ7

227

4

1

4141 0

Total Tru,pil Requests Field Requests

10 .623 1 .555 3,785

5 .483

10.329 1 .531 3.507

5,291

4"24 278

192

Table 18A .-Detennination letters issued on prl employee benefit plans, fiscal year 1977 .

itpension or. Print, SMH"9

DOW-inallor, I Iten "'i . issued .9, espen I'n a

initial qual ).I-: is Plains approved! --------------------------------------------------------------

1) P,n,dml,,g Empicses , p.

2. Avrand, a Plans disapproved ls : --------------- ----

P - Approved ------------------------------------------- -----------------

b, P:

and

D-Wovet ------------------------------------- ----------------- 3 To rrinatkul s

P- Appro,ned -------------------------------------------------------------

PA. Dusapp,med ----------------------------- ----------------------------

Employed Red,ninnnent linconle Security Aid of 1974.

A-u" Plans Stock Bonus

360 260 18 .7~6 2,9 N

1 1

472

2

2~499

45

120

1

1,7761 6

Table 18B.-Determination letters issued on ERISA* employee benefit plans, fiscal year 1977.

N-vabon kinks issued efth -ad 1 . until Qualification :

Plane Approved .------------- _ -----------------------------------------------------------------

1) Participating Employees ------- b . Plane Dessopnoveol -----------

2 Ain-durn not:

CardDefln'sid irbutio n

211,502 3,402,693 9

9

a, Plane p Approved_ ------------------- _ ---------------------------------------------------------- 78 .286

anPlaro ; oDissup"oveol ---------------- ------------ -------------- --------------------------- 1 6

3. T

sts "'

a . Plan, :

. . P .9=p ------ ---------- ---

Employee Raftem- Inconle Security Ad of 1974.

0.06165

SellE.pl"W

0

5

0

9

0

Detailed seenifit

Tota l

628 21 .658

29

5973

4,2M6 1

Tonad

6 .6811 35.186 1,065,B22 4,468,321

8 47

27,2261 1105,5127

4,020 12,085 8 24

14 1

Table 18C .-Number of Returns Examined By Type of Exempt Organizatio n

----------- ------------~nv- Founctin- ----------------------------------------------------- --------------------- -- -------- - --------

Non-Extund Chantable Tusl ----------------------- ------------- - .. ... . . . . . . . . . - . . . . . . . . . . . . . . . . . . . . . .... . . .

501b)(3) ------------------------ -1 Ottioni ------------- ------------------- ------------------------- . . . . . . . . . . . . . . . . . . . .. . .. .. .... . . .

50~~CC~~54~ ----------------:: ::- :-Clivc Leag.es, Soaal Weltano ------------ -------------------------------------------------- I ------------------------

so

Labor

as,

501(c)(6) --------------------

Hculdillun,.- : --- I --------------------------------------- ------------------------------------------

501(c)(7) ---------------------- goill Old Red-n-al Chips

W1 --------------- All Cifficr- -----------------------------------------------------------------------

521 ---------------------------- F-111'COOptuat-- --------------------- I ----------------------- --------- . . . . . . - . . . . . . -----------

Total -------------------------------- -- ------- --- ----------------------------------------------------------------- . . . . .. ..... .. . .... .

Table 18.13-Number of Active Entities On Exempt Organizations Master File (individual and Group )

IRC Section SOI(c)) : 9~10-76

FY I O n

l .w40

3 .729 480

2

71708

1,690

576

9.803

~1) CcimriaO-,C0rgarn,ad Under Ad of Congnints ------------------------------------------------ . . . . . . . . . . . . . . . . . . . 1.067 1,072

(2 TdIenodol o,boptnin -------- _ -------------------------------------------------------------------------- . . . . 5,114 5,223

3 ; R.1g. . ., -able, to. 259 .523 276.455

~1) Social Welfro. 125,415 129,49

6

5) Label Aqncult- rgan-l-, '4 :4 7:111

~6 8 nal- ------------ ----------------------------------- ---- ...... . -- - . - 4212. 1 00

7~ Su! .it eRamgueab- Clubs ------------------------- ----------------------------------------------------- 47,820 50,03,

18 Reoun.1 Bin-ficuirly S -- enes ------------------------------ ------------------ . . . . . . . . . Isl,725 141,138

9~ Volmi,r; E,pl,yae Benoiawy Societies ----------------- _ -------- ------- .... -.. . . . . . . . . . . . . . . . . 6,271 6,486

Doineenc Flat not Bentif,clarl, Sodoll- . . . . - - --------------------------------------- -------------------------- 11,611 12,41D

T .cn.,. RrO,%rrn-1 Fund ------------ ---- - :~ : - ---------------------------------------------------------- --- 14 13

Benevolen Life Insurance AsSodali- ---------------------------------------------------------------------------- 4 .665 4,801

3~ C-otory C-ptan -- -------------------------------------------------------------------------------------- --- - 4,959 5,264

(14) Credit Unions --------- --------------------------------------------------------------------------------- 4 .686 5,074

~1~ lulual

I pC,,,, ----------------------------------------------------------------------------

1,454 1,450

".1.

I=

on -------------------------------------------- -- .. ...... . ... . . . . . 30 31

1~7~a E,pIWo, SuWlernental Ulernpoynant Benefit Tnets Funded Pension Trusts ----------

------------------------------ 790 800

------- -- - .30 4 (19) We, Veisnans, Organizations ----------------------------------------------------------- ------ -- - 13,960 14 5

501(d) Ri and AipoMohc Ongan zaoms ------------------------------------------------------------------------------ 59 63

F.- Cooperanves -------------------------------------------------------------------------------------------- 3,169 3.79 4

Total -------------------------------------------- - ------- - ------ ------------------------ ------ 762.609 709.666

Table 18E.-Exempt Organizations Disposals of Applications During FY 1977

IR Code Section W l

11 ~ Cowr ons Orpenited Under Ad of C-grew ----------------------------------------

2 Telentoldting C."

. . . .

~34 . --------------- 4=rus, Cho liable. at- -----

WN

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

15) L.-n Agn , 1-0 019 -------------------- --------------- (6) iiel eno L

(7) d Social an ---------- Placr%nonOWIns

~89~ Ra ennal Beleficiar, Societies -------------------------- : -------------- : : ------: ------

volurder, Enel. Beneficiary Societies ------------------------------------------------

(10) D-i Fetennal Sociebm --------------------------------------------------------

~11) Te-em' Reounient Fund -------------------------------- -------------------------

8 32~ Benevolent Life I-ance As ~ ------------------------------------------------------

Cerreter, C-riparvas ----------------------------------------------------------------

54~ Credit Ulm, ----------------------------------------------------------------------

M-1 Ill. Conpalies --------------------------------------------------------------

(16) Cmd. to Finance Crop Oper- ---------------------------------- ---------------------

117) Supplinvenottl Unaniper-arl Benefit T------------------------------------------------

8) E,ployer Funded Pelum Trust ------------------------------------------------------

('9) We, at"ans-o'g --------------------------- 521 F~rion .rmV-'Cbcdikaove, . --------- ----------- .l Office Rulings

or

Unn-nabon Lett ns ~ ------------------------

~ --- ----- ------------------------------------------------- -----

Grand Toluit --------------------------------------------------------------- ----

Applications Is, Ckinerivilluld.

Approved Denleal Other' Tells!

163 78 IT 3,12 15 Be . 728 5W3

2,576 15'1 1.009 3.739 596 15 115 728 1 .727 113 326 Z~6 2.122 195 824 3, 401 38 IS7 '933

135 1 ~2 74 03

- - - -

2 57 152

13D 28 M 281 299 10 4 6

- 4 152

- - -

41 14

21 4- I I25

53 3 N 39 13' 300 82

2 .491 V3 - 2,764 9,615 804 65 10 .484

36.017 2,309 ami 47.067

Atiphookons -ndr- by -payer, incenniol- applications, at,,

Applications fin anninsinukda of isusfing determination lefters and to, trum-tion 0 e,empt status : also inlonniano, submitted by an orgent .W. at Me and .1 1% a- an - ruling
14 2

Table 19 .-Earned Income Credits January-September 1977

(in thousands of dollars)

APPLICATION OF EARNED INCOME CREDIT V

NE FILER S

adernal tenuous negiods, districts . TOTAL EARNED VVITH EIC AND APPLIED TO -FROZENStem and other ithout (Statert MCOME CREDITS' ZERO TAX LIABILITY' 1976 LABILITY REFUNDED OFFSET

reass-ortal by enNi districts Iddloseed Amount Number Amount Ifisoullan' Amount

in a-.- Numb., Amid ., Nuente, Amount Ithandon,,.rtdb.rShA.~tdbft ard ,

all table) shown (1) (2) (3) (4) (5) (6) (7) (a) (9) (10)

Unuand Setres, total ----------------

elamh~Allil Region ----------------

Albany-------------- (See (C) b1low)

A,nil ------------ Im"m) __ ------

Bonden ~Iihhhl

Buflato ------------ (See (c) below)

B .114lon

Hiatto . 1Conn=mt) ---- r

Manhattan ---------- (See (C) lbelmii) .i

Foradholln -------- (No . Hampshire

P-riden ----------- (Rhode Island) -----

Mull-Aftedic Ral . -------------

saftsdo, - ---------- (So . (y) .6~)

Newark .. ---------- (New enny) ---

Philadeldda_

~S: C: ~o~

g,

Sz "aw") -----

Agents ------------ -

E-2m. _ ----- (Alatmor,a )

Colu is _ -------- (South Cardinal,

Greenabom -------- (North Carolina)

jaokson _ ---------- (Monsissipp), __ in ~F bids) ----------

Tandounal ------

Centel Region ---- ----------------

C,n,n ~S . Id as

Q and S.: cl~ below) w~

Dabod ----- IM ig.d

Indianapolis nisanot --------

Lotamille ---------- ji(entucky) ----

Modwae Pruduse, (Word Wgini .)

------

.. ..... .

Abordes (-

Ch-

- (Sir. (b) oe"

)

U .aoihe

; -------- wom.) - -- --------

Fargo ------------- (North DaIZ6til) --------

M,I- .k as ---------- (Won.mud -----

Orhade ~Neaanska

$1 . Missouri)) -----

SI . Few

See 0) ael

Sbudeast Aiduquenid11-1 n ---------------------------

~N_ sh"i.)

Auel ....e-::: : : : : : Sao (t) add .)

Cheyonne Ily,.,n,) ----

D 'I So. (f) Wow)

Do- --------- . - ---: ' Colorado) ----

Ldl, Rook ----- ---- (A,kadsal

New Onson, -------- Lounoddi) - __ : -------- _ Madams ~dy ------ (Oklahorna) -------

W10da . ----------- ("heas) . _ ---

Washoon RN;Ian -----------------------

ad"Oh"ge : ----- -_ (Alaska) ----------- --

Sales --------- (Idi -----------

Heleni- : : : : : : : : : : : : ~Iontarha )

Hondlu __ Hawaii) -

Lee An~~.

. . . . . .

. (So. (a) b;l.w) ---

Phaters, ICAg

Fontenot ;n))a :: : ::::: :.

Fund, . . . . . . .. . . . . .. (Nln,dua) -----------

Sao Line City

son Seems _ . . ..:.:.:.:. _:: S :- :----:

(Wil.lang-) ----------

Office W International Operation---------------

P.. .. Al. __ _ -----------------------

Other --------- ------------------- -----: ::

6.170,631 1,240,317 471,1154

718 226 141 511 63,326

49 :06 9:146 2. So

1 '1 :."'o '

:31 1.756

9 2 2~ 537 a 6~

IB3 441 32 .832 15,186

101,693 19 .736 5,4 7

15,114 2 .965 7"s,~71

1 , S :."92' 23 : N, 10.658

203 .611 3 4~ i : ~1 171 :10

191,

70~157 13332 43 45:325

80,013 15.739 , N6

165,646 32.7N 14 .059

162,W 31 .754 9.442

13 N "

1" :' 50M

Z. 2. 15'2 740

4' HS' '

:47 71

, 1: 7MN. 23084 942

1,324,08 273,410

94.

5 NO

2

Is

47 44:.IN Well

152:2623

. ' 1

:163

118,N9 24,057

7 so.

,2,011 , lS :.S7 112o :1.1 12,141)

" 12.285

2,7 ,U 7 3 :1.11 6S, 23 :1.4 12 .11

11 .760

TS1 'j, IS:011 14121 4 ~2 :.~ 71 :5212

56

127 :3' 24 :11

72 s3S 33 'e, 13It "'

131,697 25897 8 :57' .286

130,11N 26,797 7

KOM 1 'i,on j!L

699,715 137,442 41171

2' 4

6 :b

112:4'3.7 .:7.'60 l ..2.

59.6`1 1 3.184

1 I .7t:.'247' J ..474.3' 4.839

38,5B4 7,474 !:~711

150,250 30~MB

It 5

S"

4.109

,,:,' .77' 1 '3,~'7% 4~27.

1 'T

:211 207 N 8512

7

s2 , So 10:4527 4:600

293.U5 61,2M 26 .442

9

632

1 lto:,"~, ~61:N22 1567

11 14 13:71 1,

2

st :4~1 . s

4 81 7,45a

118 .297 31,4210 14,440

11. 5:73.17 10311 7,111 . :.2

' '68

975 .561 195"" 95, 137

5 So ' :1' 6

43o

~5 :21213 1 7. 62

22 .980 4 .545 i :4600

19,108 3 .490

1

.159

4046 5 62.923 47.389

75:5s4 15,321 6,405

66.586 13,057 4 4`4

20,M2 4087

,

:630

'

~1~74

6 '74

Z03

221 ' 15:.lo 21,1933

81,329 15.951 12

3.05S 76 3321

1 73 141

2:1179 4 1 6 '641

103,446 3,065,901 344,436

11 .870 U7.952 311 .273

544 24,742 2,nil

351 19

2

.: ~1 1.3 o:271

1 .830 0

.

3 .582 75 .5,19 8,167

1 .136 50,839 5,75,1

1,155 7 U9 9u

So N .731

2.517 5 8 : '5'19 6,127

221 11,165 1 .270

373 10.858 1"69

9 So 35,1 186 39.181

1 :0463 44

:43,

.,493

3,073 75:~51 8.213

1,967 12 27 131

958

4..

W

.

s:212

1 .602 76,916 8~

764 23,3V 2.w"`2

193 7.956 No

21,084 662,

:7' 1 71 1 , I ~:7

3 .701 10 1 5

I, :6113 11:~24

.2

5. 1 5

. 4N

2,674 122694 13,88t

2,734 50 :585 5,783

5,221 150410 17 4 , :11

2 .488 99 :7 6 206

01 :0111~' IN :NS 6,4V

64,001 7,1,18

2713 11 1 :1 ~2

:" a 9

, ."j N 70 7 N7:012

1 .51 16 1 6 ~6:11 2 :S 6

57 665 73

10.205 11,f4

230 1 ,B FOW

4

N2

B1 :245 8.710

673

.,.0

4, :N2

145 12.339 84

894 4' 9 3

368 24:9416 3: M'

2.107 7' 669 .7M 9,266

. .

411.115

916 S'S '4:.09

19,014 40017 55,81 0

'm 22:T38 2,471

6,00 1~1,521 14,6M

3 .1115 o3 132 '409 1- :' W.1382

14 35 .950 4,1~42

:63' 4%3U 5.878

3,126 67 :7n 7,5,til

1,658 51 722 6,076

702 32,

W 3'7

.00 'So "'

41,741

So 524

3 1 S

371 4 .540

7 1

9

12354 1'525

244 9.1164 SN

~ :'43S' 171= 19, GM ~33 684 3,199

1 .058 33,737 31 :75'

3' 1 7o

452

1 5: 2~' 1,744

4.697 104,787 11 .222

1 .454 4 W9 4 .49

M ;J0 '42

3 496 41

37 957 im

4,323,706 Nil 85,952 11,763

4913,941 101,50 9,852 1,605

3413 6.86 1 594 .3

21:~211 4

N3 2

2 1 55

.

Its 1 17

:2 1 .14%

114,289 24,131 2,8`,o

69,736 13,814 1 .0 IN

10,413 111 32

' :6 .

. a 1

47,622 9 BO M 45

70,443 16 .81, 1,913 3~

13 .435 2 .W4 236 36

16 .621 3,4 7 235 ~0

4711,6114 97 .653 7A6 1,1"

51,764 " .Im 627 in

116 .651 NION 2.211 392

109 .842 2217 1,623 254

oa,M7 1 2:703 SO 116

14. :11 19,429 258 so

2 31 578 9t

6" ':2'

lit .0 Is

.s1l) 2 5 26

131 ls, :1067 1 So 31 15,00, 2,278

421. 32:533 2,276 326

23,567 1 .2115 200

.2

3s 1 7 " 1:3 3 221

153,264 31 :431S 2 4. 35`1

91,898 20,062 1,417

20820 4 291 4 .370 "10,1

1 6 a 270

k

36:716 238 16 9

sio,m im 90 . 4

n.719 16:267 1., 1 77 1072'

86,524 17A60 1,175 1 a

122 :~57%7

24

. 13 1.586 253

E7 17,542 1,064 16B

94

IB

18713 1 .107 169

39 :875 8 :1" 369 so

474 :Z 11 'No 6,566 ",91

to 2 1' 153 23

119,7Q 24522 2.362 428

38,M9 6 :N`

41o

69

11,505 I'S" 133 21

5S 4V io,865 7,t8

M

24,13,15 4,327 264 43

1.,289 20,913 1 .352 2909

Us

4

4s 52.1 V

"

84 508 85

722,113 1 " 11,211

"No

39,105 7:'9o'i s, 1 84

216 3,117 'N

6:4'11

.3

D4

16

1

24.107 25,836 2 .122 35',

,iB.002 9~576 793 1 32

7

14614

73 1

11 ! :'13152 23:590 1.7193 14'

69,U9 11 13" 1 .021 156

M,420 Nou, 171 78

6993 :5ed 1~,CN 15,625 2,781

915 787 65 11

3 218 272 41

16877963 2

.

242 39

2 :N7 2.9" 12B 22

296,155 62,o 8 808 1,627 5o

55 .662 "

.

9 .1 6 ~7 524 1.102 6

45,816 N So 11

13,845 2 .869 244 40

2~ :17

4 o

2 5

16 226 33 :2342' Z .30 -1 IM~

55 .968 11 .313 725 Im

21 :1 603 N 17

466 29 32 6

1,498 w5 57 11

Tests I., Shater . ron itheart istedis

---- 62.1:11 127 941 1.5.2 11.1. 2111.171 3.~,421 417 W 55,21. 11,909 Z518I its,

46:1131 22:1 4.918 115.923 12 . 20

1

65,261 33,706 2,870 13

thh" 431,862 65

..

M 857 7~7n 20 6"9 12 :11 ZN~520 6t,617 6,441 1"49 ~C) New Yod,

9 7 171 61 243 3 :7~B 22 12 :2 3711 it ------:::: ---- 244.402 47.667 16,437 32% 122

:"

So" M

4 Ohio 7

14.4,18 2, 12. 14, 4 :229 334 75 26 0 Pend, -is ----- 256503 49

Tinal 474 675 227 2 90. 25 0 .310 340,720 71 :1 5.239 88" :110 WIN 42,114

9.9

g) Belli, 124,1000 24,308 8.467 I'B'D 64.766 7,M8 82 .452

1,

049 1~405 220

(Maryland no ) C

,

or

I lodare Earned Income Credits datmeel by tupayer.

and al. dep.du. 1. don,clat sent to and returned by tromayon, has. on. mulds andante rho clareourrants Of but who do hot

Claim Earned Incoom C, .d,. an anc Ishims .

' Includes b""yes who fdad wary I drdon Utimed In— Credits as well as these who -ithad Man Ea dill Inound, CW,t noti,O bd~tdse Met, mi filed as doo-tuable or

haturmadol.. Whowed

Earned

, income Crude Characteristics

The number of Eardeal Id-. Credit arephosohno ..-ad . In . total numblo at su~ Ontario in W,,n (1) socause, of dual aim,cabon, b., Partially 1011med add partially applied to

mostand.7 losiance due. The amount of Eamed Inconno Credit applications squall, the amount shown 0 ON— (2) .

died ou imphou 1.other loan 1976 adoildee Cd those godualral

ts"amodran lit

pild", readlued, al loupayer aoi,ouffl.. Earn total for od

In"To I

Th. United 512"I'll ginner lu,nn 9!doaidda 4. 641 other Earned Inourn, reall applications when are no a=i1bki` lWydrodO and agion .

143

Table 20 .-Tax Withheld From Payments to Foreign Persons of Treaty and Nontreaty Countries-Calendar Year 1975

(in thousands of dollars)

Country

Tax thorn

.Ithl, d inowthdrandar ,

Total by d .wd""` m

.1thinaking lithholiffin

Irdand, .1thinald agent. .9-

Total . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 2,6M,161 q3,561 303.5" "M

T liany moahka" total . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 2,416.704 391,542 261.525 IT

A that . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . .. . . . 1 5,971 1.0 1,063

A-tO. . . . . . . . . . . . . .. . .. . .. . . . . . . . 3.568 467 452

65,726 9 11

.,92

N7 45

I

Cana"

.. or Belgian ars

. . . . . .. .

lwrfth- 49

.. . . . . . . . . . . . . . 406. 90, 48 .139 43 5 -.927 14.2 ;2

0 - Orn -r . . . . . . . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . .. . . . . .. . 4,801 267 26 -

F dam

F...ce .

.

.

.

.

.

.

. _

. . . .

.

. . .

..

.

.

.

.

..

.

.

. .

..

. .

.

.

..

. .

.

.

.

. 3 -

. 192,= 20.92533 20,70238 .165

Feaeral Repubic of Go, ny . . . . . . . . .. . . . . 95,370 10,829 10,82 -

G 2,801 442 .2

;C= . . .. .

. 88

524 24

island! . . . . . . . . . . . . . . .. . .. . . . I . . . . . . . . . . . . . . . . . . . . . . .. . . . . 1.204 54 Ni,

Italy . . . . . 1859 2.52a 2.524

jida 90:466 9 .U9 9.0,19

Lu.mhobaurg . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 40.409 3,666 3SW -

Net "a"s 209,842 W'DOO 29.853 147

Neffiederid, Antilles . . . . . . . . . . .. . . . . . . .. . 212,122 7.173 7,172 1

New Zealand . . . . . . . .

. Six 1 58 1 sit -

Nanidy . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 2,876 357 357

P kourn . . . . . . . . . . .. . .. .

2

is 15

Poland! . . . . . _ . . . . . .. . . 463

1 ;

N 0 1

Romania

Sweden 40,2112

s z

2 .0809 2.0189 -

S tterland . . . . . . 600,02 IN .02 72,7B9 51."3

Tinnod! I T

1 1 2

09

12

Aep

USSR 690 1 98 1 98

.lbl . 1,700 447 447

United K,OgM in . . . . . . . . . . . .. . .. . . 410468 45,764 45,764

c~K

Former

U . N Traritmes . .. . . . . . 4:783

Nonnesty, umr .. . . . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217.477 42 632 '3 .019 12.019

Number of

Information

document s

else by

withholding

spent .

614.320

Su .636

6,906

4,474

1416 8

2672.7., S`l 4

97

31111

13.93B

50.36 8

3.781

41

4

~093

1

2 .852

4,551

1 2.23

1 .3291

"a" 1

3 .71 0

2

311

86

5.404

26,621

,96

SoSI B

51 .765

2,256

ID9N2

I Only total amount or to, withhold a inhularibus ; breakdown betwoon on, wuldddl by domestic withholding agents and his, ftom Weigh gommomint, 0, withholding agents is estrinved

truth past er,pishemTable 21--internal Revenue refunds, including interest, 19761 and 1977* (excluding rebates) (For refunds by region,

and district, see tables 5 and 6)

Number

Total refund. Of internal indanual --------------------------------------

A.- I Mudded

,,,,-lost ad Intual

the. and dollar . )

1276 19" 197 1977

Amount of

Intsmast Included

(the. ... d dollar.

1976

67,287,4114 67.726 .910 34,6811,5811 3111,493,81IS 327,125 318.93 5

Comorasonnhoord, ta,da ---- 61,177

4 to 30

1..4.26 . s1230 4 213.02 208 94

tdinnitualrinoome,and emplayrnwitilyis.-Iflitaill .--- 0.124:5'so' .7,41 0433 2B.790,340 99 .671 72 3 .489 97 36

E,ce,,,e phapayment,doem, his' -------------------------- 116 170 U.531,066 27.3442:54 29,255,379 Q.885 51.000

Old-come ta. and Federal Inedn"n", C-lbubons Ant Win 2361,979 2.42B.4 2 1, 16 397 1 .379.34 49,703 45.48il

Railroad donment ---------- __ -

431

.

. T 19 7 9

Unemployment idedrano, -------- 195,970 220.7.7 31.15 803 894 944

Estate tal -------------- -------- ----------------------------- 28,182 29.224 101 .715 I 10~1:111 9,870

G,ft - ------------------------------- 6`1 5,633 1).7 0 1 '54 2.032

E.61 . .. .. adil --------------------- 4:362 48.351 303,455 289,929 2.650

Alcohol ho, as - ------_-----_-----

Told- ... ~ --------_-----------

M.d.d.-on, and nusient a-to Ribil --------------------------

G solids ,ad on forms' --------

Gloml no rondghway --- --------

O=---------------- ----------- ____ ------------------------

12-17

13,403 112.701 112 .844

409 362

4, 1 649B

4.010 3.324

'61

.0 7

154

.964

142 a. ,

3.061

a'

1211 106458

892

2:432

4,205

2,343 43,028 44~300

All other a . .,O buW ------------------------------------- ------- _ 31,767 31,262 1B.97B 15,B24

Net .1 179,166 m .1-idom -ks doing S45,417,000,n 1976 and 1 .244 ndel-able che,ke rotating $W7.OW in 1977.

se"T

hed ondoons

ZC1=5 'ta

. tui and, ,

radio, total 9 $121,9112.0W in 1976 and $106,295,WD in 1977.

=d1se Wbocalm" oil ind to, nonhgh,ay drolon,

d,ust narcotics*

w-go""' (" 'a.

and Ilarms). .,,lot abi,ii and .1h., ...ad Is. .t.nd,.

Due to haml yea, chang- 1976, the data to, that year C... rs Od 1 . 1 975 to Sept. 30,1976, and the data tor 1977 -rha Od. 1, 1976 1. Sort. 30, 1977 .

19

-24

1,214

97 7

9.747

726

2,532

14

2

1,632

829
144

-Table 22 .-Obligations Incurred by Internal Revenue Service by Appropriation and Activity

(in thousands of dollars )

Appritipmr.. by Activit y

Total obligations, appropriations Is intimb~TI- ----- -------- ----------

Total Pelser,161 Compensation

and Bermfler

Onne,

1916 Ign 1976 1971 1976 1977

Oter,gair.r. Q .r.alecornlin,.-lunds --_ -------------------- . .

. 79 58 3

Salln, a & E.ws,s :

Tot:1 __ --------------- __ ---------- _ ------- - ----------------

44.685 49.365 M.M 40,822 6.451 0.54 3

E-ev. D,, ..,.n _ . . . . . . . . . . .

Internal A.d,l & S-oy . . . . . . . . . .

~ ~'27:3'1 'I

19A10 21 1 16,W3 17,711 2,807

25~275 Joul 21,631 23,111 3.N4 '414'3

A-, Cblectmn A T-my., Service

: M,223 1149,515 573,169 6111,760 204,054 23D.75S

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------------------ ---------

Data ',

.eaa,ng Odealmro' ___ . .

SmIancal r Recomnii . . . . . . . . . . . . . . . .

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

~djlmc`o ----------------------------- ---------

. . .. ..

Taxpayer Sennce ------------------_---------- . ... .. ... . ..

4 41111 3G6 135 338,265 104382 110,399

12':7' '2

:11153 9

.892 9.9oa 2:871 21745

242 .625 241 4' 198 161 2N 4153

4":

111,31 , 46 42,305

a 14 :'7 0 5a:N 66: ~ ~2 M7 75,306

compli nce:

Total __ . . . . . . . . . . . . -------- . . .. . . . -----_-------_-_ ......... 845,403 091,708 7OUN 752 .69W 130,583 139.1114

A J-tTioft .rna . .-. -------------- ------------------------: ::: --- 600 .726 632 .Dw 5oO 7W &W lol .26o

E PI n. . . . . . . .. .. . . . _ -------- ----------- I ------ --- . .. 13 .6U 35,816 KIN 31:',', ', 1:522 4.705

"'Ploy" al~ 3'7 86,757 111.906 IB575

To Fraud A Special Investigations . . .. ... . . _ ----------- _ -------- 00~293 105.332

28,11 E%nml

an.

. . ..

. 20,581 20,4M 17,494 1 7,593 3.087

336 9 3,7V 4,

Tao,payinCK 1 5 16 ' '6926

------- 3 6 3826 32:~1 5

2635 2,469

Technical RI;!, & s- cim --------------- 1- --- ------------ aNN

. 19 :392 13

Lariter Servi ce .. .. . ............ ............ .. . .. . .. ... .. . . . . .. . . . .

38,4D5 4D .420 32,933 35,811 1 5,472 4.N2

Reiminnnamble obligations. Total --- -------------- . . . . .. -_ ------------ 15.246 19,657 14 .214 10,037 1,032 1 .020

I Dam Processing operations Total miudes Managerrent Activity 2300 let National Office ,

Table 23-Stalf Years Authorized and Realized '

Apter,opriatio.

1 976 1977 1976 ion 1976 197

A orlead Fmallirmal R

PF-I& 7

:1 4 1,821 100,3 11 :7

Salarnes & E.bemes '248 44173 44,'81' ' 15 :=63 999 00,

acco,g,m, celoca. 4. 2 .4 2

Control-ce .. . . . --------------_--------- --------- ----------------- '

.

042 W.346 :18,169

37,2M

1W,3 97.

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

I,ecmbm, Decrease 1977 ove, 1976 ---------- ----------- _ ---------

I Does nol induce staff years devoted to mr-matele protocol

".I" 64 .340

- .176

~:121 :43'

. 223

114,264

41313

:412:27 6

93,7 3

-i2i

3SO.120

34908 8

100.1

380,132

37B.312

99.3

Table 24.-Costs incurred by the Internal Revenue Service

(in thousands of dollars )

Internet no-im offica, all or region

A. National Off..I. andd= mr.l .

(Including III offices and senvice, cervil

Total Internal Revenue Service -----------------------

Nab-al Once ------ ____ -----------

North-Atia be -------------- __ --- --------------------

Mid-All.noc ------------------------------------------------------------

S-11mintil ------------------------ -------------------------------- --------------------

Central -------

Mid-st :_~ ::: ----- : : . . . *- . . . : ---- . . . .

S-lhWeamrn

Regional CxIsel ----------------------------------

Regional Vemecimn

Office of International Operations ------------------------------------------------------------

National Cenputer Center ----------------------- ___ -------- ----- ----------------------

IRS Data Conte- -------------------------------------------------

B. Regional[ cornmissioner's offices

(ro,cludiffig district director', offices and service clintlemi

North-Ati,inic------------ _ ------------------------------------------------

M~d-Attonc __.. . . . . . . . . . . . . . . . . . . . . . ---------------------------------------------

S~ Imen _ ------ --------------------

Conrail ----------- -------- -------------------

Mid,ves __ . -----------------------------------------------------------------------------

Swthanesl ------------------------------------------------------------

West- ------------------- --------------------------------------------------------------

C. ReToirml costs ndistrlbwed

North. Ilene---------------------------------------------------------------------------

Md-A I.nrc -----------------------------------------

Sol, as., ---------- _ --- . . . ---- . . . . --------------------------------------------------

Can,, .] ------------ -------------------------------------------------------------------

Mo..., ------------------------------------------------------------------- __ . . . . . . . . . .

SWh- t ------------------------------------------------------

W eat - ----------------------------------------------------------- ----------------------

0 . District diractor's office, and service ernmm :

North Atlantic :

Albany--.- .----------------- ___ ------------------------------- ------- -----

Air - -------------------------------- -------------------------------

Boston

Brooklyn

B ffalo ---------------------------------- -------------------------- _ -_-------------

Burlington ---------------------------------------------------------------------------- _

H .Mond --------------------------------------------------------------------------------

Menhaden

P rennouth

Providence ----------------------- ---------------------------- - - ---------------------

rmnlh-Allarn,cli -: :: ------------------------:_:~ --- . . . . .. -----------

N h-AtInne,

Riiio ~. ad

; ------------------------------------

Andover Service ente r

Bnoo~tmve SennceCenler . ------------------------------------------------

Mid-Atlanitic :

Bramin -m ------------------ ----------------

Nevnerl, -----------------

Philadelphia

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

= p

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

..

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

. .

. . . .

d

h

Wil-noon ------------ -------------------------------- __ ------ ------ . .. .... .. . . . . . .

M

A~::n R,,e,,:.,,.*Cl .1,,!.;,,g I -- --------------------------------------------------------

":A ,

it ad ,

Mid ro~'

r Phdindeletti, Senne. Center -------------------------------- -----_---------------------

.Wh-.t:

A lanta -------------------------------------------------------------------- ---------

B-inghten ~ ---- _ --------------------------------------------------------------------

Columbia _ --------------------------------------------------------

Groonabc,- ---------------------------------- -----------------------------------------

J:CCkaon ------------------------------- ------------_------ _ ... .. . ..

j tors-11 - ------ ------------------------------------------------

NasnAl l

U

h Rog .CTmnr:jCT~ - ------- --------------------

SS'. :h:':; R-g!"d were r

. . .. ..

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

Attence Service Center ------------------------

Memphis Se,ice Cents -------------------------------------------------------------------

14 5

Pa tni

C..W.

Tom Iran Travel Eq.1p.-t Other

(1) (2) (3) M (5)

1 .810'"S 1,430,313 47.970 10 .676 321,486

334.823 106,023 2.948 4 .91M 220,1168

265.998 243,415 4,687 273 17,623

181,985 165,701 4 .024 1 .223 11.037

188,457 16L344 6.546 713 13,854

15 .653 139,175 4,949 637 8 .892

78479 161,027 5,829 11188 10.435

16 .758 146 .002 7281 780 11 S95

251 .759 225,475 7.696 351 111237

23~, :l I 22 .334 286 356 529

4aB 18 .926 1.869 78 535

11,365 8.778 1,626 23 938

9. 79 6086 42 C)

'14"

23

.676 20.027 87 70 3 92

13 .797 12.785 233 29 750

10,464 9,266 198 103 697

9 .W7 8231 271 13 792

8 .962 B.IN 210 IS 550

10 .374 0.821 372 226

6,982 B~(X)5 323 67 956 497

14,1 M 11.341 533 171 2.08 1

924

977 909 6

a 8 65

2201 587 1 ~413 2 .0'

1 .348 72 1,212 U

1~175 - 1,111 64

1 .974 1,1175 99

1,689 1.56, 125

7,695 6 2

4 .443 U N24

'232

90

28,06B 26 .310 648

30 .274 26,621 397

17,909 16AW 475

2,06 2,198 121

14 .6U 13.797 338

60 .128 57.602 660

3 N9 3.SI7 114

5 ."SI 5~0113 120

42

160

31.633 30.W7 141

40,436 35057 101

24~11 22 38

37 NB

34

:~,'12

30 at I . 5 2 28,722 5.7

15

. 29

4 :11 3 7

16,467 ~4 7743 568

3 .507 3,302 66

43 .183' 37 .578 1

21 .041 19 .oel 962

9,799 &88o 428

7 .49B 6.848 2 8

16 .033 14 .528 759

6 No 6

. N 326

37 .2. U.1 16 1,287

13,G23 11,794 530

1 15 4

32,118 28,099 Bo

33.170 2"76 69

167 22. .3

32 1,178

83 1.173

8 93a

14 153

is 513

3 1,863

IN

10 267

3

49 1 .565

2 5276

2M 835

112 1,313

239 9 5

100 608

197 927

22 11 5

245 528 0

164 834

61 430

51 3"

98 649

23 326

121 1 .710

148 551

25 3,934

10 4 .116
146 14

J~ 1

7

Table 24.~Costs incurred by the internal Revenue Service-Continued

(in thousands of dollars )

internal na-Mr offiee, M-10t. or MIM,

C.nt.l:

Ci ."ne" ----------------------

0-al. J ---------------------- ------

Done. _ ---------------- ----------

Inti poin; ------------------------- ------

L-will - - ------------------------------------ --------------------

PMkM,I ---- ------- ----- --------------

Central I I 1,en:n, 6-1 --------------

Cannot

Fi=Caro. ~ .; TI. ;~, ;~ :

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

Onann'ti emice Center ------ -------------------------------

MItIanoal l

Ab,a -n -----------_----------- -------- C ------------------

. = ---------------------

: -::

Fargo ~ --------_----------------- -

: ------

Vd_Uk Me ----------- ----------------------- .. .... ....0 - - ------ -------------_---- ---------------_-- ---------- -------- ------

S, L- ~ ----------------------- : :::~ -------------------------------------------------

S' : P.Lq -----------

stinngfint

Moi-I Rg ::;!Cl a~%:n CTI ------

MaN,_ P, ir

~L

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

Ka Cey Smrw Center _ -----------------------------------------------------------

Seel=

AJWq ., ue ----------- --------

A sin --------------------------

Cray-I -------- ---------- -----------

DO - ------_---------------_----

Do- I ---------------------------- ---------

Unle Rwk

Noo -------------

01dahannot Oty __ ------------- ------------

W - - -------- -------------------- ------

So~thnaa,g Regbn~Centohzeal Training ----

~slnt Sannce Cente- --- ----------------

Swth-s' Retponal Tmino,g Center

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

Wanionno:

M-g ----------------- --------------------------------------------------------

Bone --------- ----------------------

. IM, I ----_-----_---------

Hondulu _ --------------- ---:: :: -------- -----------------

Los A,nw es . . .. . --------- --_----------

p oen -- -------------------_-- ----------

Poniard ------------------------ : :: : : : : --------- ----------- -------

Ron ----------------------------

Sall Lake On, . -------------------

IS n Fn- - - --------------

Seen I ------------------------

T C

Tt

R":~%' a

o

wo, e; n

Ogden Sennm Center ----- ___ --------_-------------- :---------------- ------- -

Fr . . Sann- Can,M . . . . _ -----------------------

- Lou Ina. $500 .00.

P. itanned

C-p--

T-1 grato. I... of Equipment MW

(1) (2) (3) (4) (5 )

411 90 726

17,035 1' :s4' sa. 5 9"

24 127 22 14 8

M'966 31,559 97 1'.

16 .108 14 :.1.14 612 697

10,311 s 1 s 18 401 1

5,N7 5.270 261 55 0

1213 in

35,455 31,373 as 132 3.B48

2:1 2,593 20D

,12 676 40.272 '5 1

9,5`9 8,614 411

2,643 2,331 1

14,32

1

2

,

6 4 1

:~g S:.'. 23.

5

22,451 20,635 756

16077 1492 W

11 :008 9:00, 515

25 1n

'39

48 476

1 24 1 53

43 574

69 37

5

2"

Int,

42 56,

116 No

140 - 10 -

5W 11,201 82 w

4

'

4,096 IN .

:74~' 26078 1,224

2.312

2

:008 167

28565 25,4<i 1~0 5

1 I :8w 10,4" 4"'

7,277 U 352

13,178 1 59 12 .0 474

2 475 '10 527

8,151 3' ;7

112 - 2

36,767 32,283 125

3.623 3

122

15'

3.840 3:42S .2

3405 2.993 212

4: 09

4'036

.,

1 3

.081 5s a.3 1 Us

89.79, 8,127 292 :

1 ":4"' 313

3

2253 57

403

.1 3

313

14,15119

4 :1147 6

3

13,533

:074 1,114 1 V

512

W 26V) 2il? 6

.030 33 766 26

38,784 34 :012 so

4,197

20 219

2. 117

182 1 .80

10

B`2

67 661

49 595

67 718

26 355

20 4,33 9

2 240

1 7

2 199'7

31 207

31 2, 536

11 361

14 553

'a 276

4 1 90

22 1,936

10 60"

4 4.1247

17 4.605

Table 25 .-Personnel Summary

Locanion and type

S-i. Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PMoI

Ttanpontry

Not-, OH- 1

ROW Stmnhoa Toul . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 . . . . . . . . .. . . . . . . . . . . . . . . . .

Dow Pneousing, total . . . . . . . . . . . . . . I. . . . . . . . . . . . . . . . . . . . . . . . . . .. . .

CNI-1- 1ot.I . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .

A-rt-011-

O'no, . ..

Tea"Ver Sern,lea, total . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tup:yo, Se' : S act,

Tup Y. Son Flop

Othe r

AMJII. total . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . .

R.

III, Aual . .. .. . ..imn . . . . To.

Cline, ~ ., . . . . .. .

Employee Plans Ong, tW,I . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .

R ..n.. Alan .

To . L

..

So-6,II.T-n-I

T. A .Mon ,

Intraffigen ., Iou) . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .

Soecal Agents

011,.. . . . . . . . . . . . .

E.-M Org., total . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .

R ..n.e Ag.n ,

To . La. SMI Toch-af

To, A,dAor s

OIhM_

Appellate, total . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .

"In. ON.-

Audnort; p

O'ne" . . . . . . . . . . . .. . . .

Administrarion, twat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regional CMMW . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regional Inop-ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NMI : Reon-sernents one-W-1 abo~e ng-

;=Ud. Tor"nal L.-for .-ge -Inon . -I-d 1 . -,,aS--

rno,nJ It Offic. .1 Doeenon., Cen,p- Car .,, and IRS Do, . Can, .,.

A-log.Paeffien. Raefiu, d

1916 IM

a,

45 65 .727

11 :06 69 .84B

13 .519 15,879

4,783 5,025

00,672 00,702

26,938 28.517

"J" 10 .118 1

6 .918 6.201

4,866 4,600

3 .506 3,922

482 509

1,491 1 .117

1,533 2,186

26,691 25,810

14 66 13

4 :"63 4:V"

7 .762 7,00

1,103 1 .266

7",

4~

317 363

3 .739 3.575

2 611 2~555

1 :1213 I.D20

604 612

447 452

71

153 160

1 .21 : 1,101

58 566

120 'Is

510 499

3,209 3,131

935 W6

so 861

NMMMar Employesto At Cleew, of Year

ING

05,712

70~868

14.8,13

4,5513

81,153

27,370

1210 "

6.781

5,300

,11 n

".414

70, 5%

13.816

4 .662

79,752

26,4113

,0,709

6,075

4.634

3.U 7 4,08 2

1,327

2 .320

26.399

13, 865

4.5%

7 .938

1.21 2

756

824 2

332

3,563

2 .553

,,,, a

6S2

421a

70

1 53

1,205

171 '2'

508

3,102

1147

675

26

.3ao

14 .00

468

7~620

1,272

37

] 6

0

i 1~

3.664

2,787

1,077

650

4

0416

57

1 73

1,196

172 its

506

3,20

M2

052
14B

Table 26-GuEkIty And Cost Statistics For Printing

Q-thy 01000 ft-.) Cost (1,000 Dollars)

Q,u of Work ot~

T

.-

pd.

.g- ".76 FY-n

1 . T. . P

.k" (1900 . Instw0j- S~edulas A B.52 pag") 24,797 - 1.835P kao ., (F~

P=~21;.- n.d, ' "' ~~ P-9* 10,787 Index

1 .126

A&B p !TSE

~

: 8,957 Ow .= P.

N&aga 4 (Fo- ItD, S~W,Ies A A B~ C. D. E, R: .F~ SE, F-. M68 4136 4 .97~ 2

MaW-96 .765"fM. . . .

. 3

."9

P

7

~04 .(F- 04 A .. 1-au.-.-32 pag.,) . . . . . . . . . . . . . . . . . . I . . . . . .

. 7,7 7 710

065

(Fom 1065

.

Sch .K-1,Fo-47W&1nsa,d- jes) . . . . . . . . . . . . . . . . 1,800 153 2

P~age 1120 (Fo1120. S~ . D, Fo- 1120W, UN, 4797 . 4874, 004 . and Inst-ons-

%V 2,180 1~ 202

2 . E.p

T

.. P .

1~ . 3VII-16 ) 465

ToW coat ol Tw R-Im & Imt-ws lor KAkw Mat4V To T-yws . . . . . . . . . . . . . . . . . . . . .

. - - 7,237

3. 01h. T. R .aan.. lml- Publ.U.. F-, & P-PhIM, . . . . . . . . . . . . . . . . . . . . . . . .

. - 3,111 ~3M - 20 .~

4 . ~inisUab~ F- eW NnWhlets . . . . . . . . . . .

. - 605,311 - 7,"9

5. Fold ft-g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . . .

. - 389,637 - 2 .92 1

T.al 13 .446,"7 - 38.257

jr-
150

Acts of Congress

State and Local Assistance75

Employmee Retirement Income

Security (ERISA)

Privacy

Tax Reduction-1977

Tax Relorm-1976

Administration

Cost Reduction

Equal Employment

Handicapped

Labor-Management

Safety

Training

Advisory Groups

Art Pane l

Alcohol, Tobacco, and Firearm

s

AT&F Taxes

Statistics

Appeals Process

Administrative

Appellate

Options

Statistics

Assessments

Corporate

Estate

Excise

Gift

Individual

Statistics

Assistance

Foreign

36

298

8, 17,49

72, 73

74

74

7373

75, 76

75

Appendix1 4

26

2728

54, Appendix

20, 23, 24, 25, 26

20, 2

4

20

2020

Appendix

State and Local Government

s

Taxpayer

Audit of Returns

Charts and Tables

Computer Assisted

information (AIMS)

Tax Shelters

Technical Reference (TRI)

427 5

6,8

Appendix

24

26

262 9

Commissioners of Internal Revenue

(1862-1977) Appendix

Chief Counsel Programs

Administrative

Crimina l

Disclosure

Legal

Refund

Tax Court

Statistics

Conferences

Advisory

Appellate

Inter-American Administrator

s

(CiAT)

Corporate Income

Collections

Employee Plans

Refunds

Returns

Team Audits

Criminal Prosecution

Case analysis and disposal

Investigations

Justice Department

Statistics

Delinquent Accounts

Compliance

Prevention

Statistics

Disclosure Operations

46

47, 48

57

51

5254

49160

262 7 4 2

14, 15 3 6

130, 131

17, 2324

47, 48

474 7

47, 48

19, 20

2020

Document Security 57

Disclosure Officers 29

Privacy Act Impact 57

Restricting Return Access

29

Earned income Credit

Public Notices

Tabular Data

Statistics

Employee Plans

Federal Agency Coordination

Rulings

Statistics

Examination Programs

6, 101 7

Appendix

363 6

Appendix

Discriminant Function (DIF) 22

Mathematical Verification is

Taxpayer Compliance

Measurement (TCMP) 22, 37

Exempt Organization

s

Determinations and Rulings 37

Master File (EOMF) 141

Technical Advice 141

Statistics Appendix

Federal Court Activities

Appeals 55

Claims 52

Supreme Court 49

Tax Court 54

Federal-State Programs

Agreements 63

Tax Information Exchange 62, 63

Training 42

Foreign Programs

Assistance 42

Competent Authority 41

International Operations (010) 40

Official Visitors (TAAS) 42

Statistics Appendix

Fraud Investigation

s

Cases Prosecuted 28

Intelligence Division 28, 29

Internal Security 70, 71

Organized Crime 29

Strike Force Cooperation 29

Statistics 28, Appendix

Individual Income

Appeals

Audits 22

26, 55

Collections 12, 14, 15

Refunds 16

Returns Filed 16

statistics 14, 15, Appendix

Information Activitie

s

Internal Revenue Bulletin 33

Public Affairs 10

Publications

9

Taxpayer Assistance 6, 8

Inspection Operation

s

Internal Audit 70

Internal Security 70

Investigations 71

International Operation

s

(See Foreign Programs)

40

Legal Activities

(See Chief Counsel)

Map of Internal Revenue regions,

49/60

districts, and Service Centers Appendix

15 1

Narcotics Financiers

Investigations 29

Statistics 29

Personnel Programs

Equal Employment 74

Execulive Development 75, 76

Handicapped 74

Labor- Management 73

Statistics . Appendix

Principal Officers of Internal

Revenue Service as o

f

September 30, 1977 Appendix

Publications

Internal Revenue Bulletin 33

Taxpayer Assistance

9

Statistics of income 64

Refunds

(See Corporate Income : individual

Income, Appendix)

Regulations

16

Revenue Rulings 33, 60

Technical Advice 32, 33

Returns Processin

Audit 22 g

Collection is, 19

Data Services 32

Service Center 16

Statistics Appendix

Verification

18

Statistics

Audit Charts and

Tables 1 to 31 88

Statistical Tkies 1 to 26 118

Tax Administration

Compliance 23

Collection 12

Costs incurred Appendix

Enforcement 28, 29 Forms 8, 9

Legal and Legislative 49/60

Security 70, 71

Statistics Appendix

Workflow in the Internal Revenue

Audit Appendix

Chief Counsel 58

Collection 13

Statistics Appendix

Management - 72