..
 

COMMISSIONER OF INTERNAL REVENUE

ANNUAL 

REPORT 

1961 

For the Fiscal Year ended June 30, 1961 

INTERNAL REVENUE SERVICE • UNITED STATES TREASURY DEPARTMENT • PUBLICATION NO. 55 
sitmgo apia.tas Jo aitta.taluo) sassaappv ipauisay map:read 
SUMMARY 

NO 

TRANSMITTAL 

TREASURY DEPARTMFST, 

OFFICI-; OF THE CO;\DUSSJO);l:.R OF I:-:TERNAL RE\'E:-;UE, 

WaJhing/oll, D.C., Sl'p/ember 26.1961. 

DEAR MR. SECRETARY: 

The continuing vigor of our seIr-asse'Smcnt system of taxation is 

r('n~ etcd ill the attached annual report, which dc.,cri bc) 1ntl'rnal 

Rt:vcnuc S<T\ ice activities in fiscal year 1961. Gross rercJpt" rdurns 

filed. rdllnd-; and additional tax from direct enfLlrLemcnt all fiN' to 

record heights. ~1any prog-rams were reexall1ined. Some were expanded; others were modified in an efforL to attain higher IC\'cb nf taxpa) er compliance. 

•\s \OU know, \~ hen the fiscal year do,ed I had ~er\ cd as Comlni~­

.,illTlcr fur k<:s than six months; in the main, ,ground had aIJ'cad\ bern 

l.licl for mo~t of the work pro~rams carried out by the "CI\ icc dllling the 

)'l'ar. Indeed, to assure a smooth tramition, I ('mt~· determined to continut~ the great bulk of the S('[\ ice" policies <loJ goals, modifying ollly 

those: more immediatel) related to what J \'levI. a... nul' hasic mi,sion. 

One of nul' primary goal" is to imprm c and ~tnn~thcn our self­

;'''-'C.S''ITllnt system. While the totality of the ~er\'ice's acti\ ities contribute to this end, a number of them assume pivotal importancc hecause 

nf the proximity of their impact on taxpayers. I rder p<lrtirularly to 

the Sen icc's audit prog-ram and to Jto, comersion to ,\DP. \no it wa, 

~n these areas that I placed major emphasis durin~ m~ first few months 

III office. 

TraditionalJ)', the Sen'ice has stressed cxamination of prodlleti\T 

[(:~t1ms at the expense of hroader examination cmeragc. HilI. til my 

OllOcl, nro'lder ('()vera~e is needed to impnwc \ollJIltarv c{Jll1pli,lIlCC ;lnd 

IHllstn l<lxpayer confidence. To further thes(' aims, I ha\'(' alll'aJy 

pUt i? motion a series of steps dcsi'ined to cnhanct' the qualit~ of our 

t'X10lJnations and extend the ar('<1 of co\'erage to additionalgrnups of 

taxpayers. 

Abu ,ital to th fulfillment of the Srnirc's mi~"ion is our rapid con­ version to ADP. Shortly after taking office, I directed all elcmentl' of 

v 
YI ':)l~Tlunflry (filiI Tran.Rm ilfnf 

the Sen'ice to give priority attention to installation of the ADP ~stem

because of the major role it will play in the Scnice's operations, thc 

magnitude of the job and the ti~ht deadlines established. Amonf{ 

other things, we focused on selecting ADP executins, recruiting and 

training pCT'<onncl, site selcrtion, com·trnction of equipment and facilities, 

and formalizing an accollnt numbering- s"stem appropriate for our ADI> 

system. In addition, ,'ve arc making sure that affected f'mplo~ees will 

be carefully considereel for other positions and, in particular, that incumbents with special skills or talents will be gi\'en all opportunit,· to 

fill positions of greater responsibilit~.

At the same time, e!Torts were initiated toward strcngthenin~ a number of other facets of tax administration and \"oluntary compliance, ineluding-. impro\ cmcnt of the Sen i( c's taxpayer a!'>.sistancc aeti\'ity; 

revitalization of our public Infomlation program; expansion of our educational e!Torts, ('mphasis on the I\f'Cl".;sity for integrit\· on thl~ part 

of Sen'ice rmployees, praetitioller~, and taxpayers; simplification of tax 

forms and in~tntction:.; and imprm emCnl of office space and equipment throughout the country. 

In many of these nrcas, of course, onl~ a beginning has heen made, 

but the important thing In tne IS that we ha\.'(· Ix'gun to move [o""ard. 

The emplo)ce responsf tll our !1CW direnions has been most ,gratifying, 

and I am confident that significant progress \\ ill be made a.s these pro­

~ams gather momentum 

fL­ (~ L_ 

l\10RTIMER 11. CAPLI:\", 

Commissioner 0/ Internal Revenue. 

HON. DOUGLAS DILLON, 

Secretar)1 0/ IILl' Trcawry. 

CONTENTS PU/Jl 

Sl'\l"ARY AND TRANSMITTAL - - - - - - - - - - - - - - - - - - - -. - - - - ­ V

O\f'tl~'ilONJ:;RS OF INTERNAL RE\'EI'IJI: .. - -. - - - - - -. - - - ... " XI 

PIONCIPAL OFFICERS OF TilE INTERNAL REVENUE SERYH"E __ • __ .. Xl 

~hp OF INTERNAL REVENl'E REGlO"IS ,\1'10 DISTRIr.TS XIV 

CI1ART OF IN'JERNAL REVENUE SER"JCF ORGANIZATIilN .. - xv 

REPORT ON OPERATIONS 

INTERNAL REVENUE COl..LECTIO:"IS AND REl'l.I:>1DS .. __ . __ '" ... " :3 

.., GeneraL _ . _ __- - . - - - - - - - - - - - - - - - - - - - _- __ . 

ncome taxes. .. - - . _. _. - . , _ 4 

Employment taxes .. . __ ._ .. .. ... _ J 

Excise taxes .. . . "'. ___ " 5 

Internal revenue refunds.. ._ .. . __ ... _ 6 

h1'ERPRETATION AND COM~lI::-;ICATIO:'ol OF Tr\X LAW TO TAxPO\YERS H 

GeneraL . _. __ _ . .. _. _. _ 8 

Taxpayer publications. . _______ _ . ... __ __. _. __ 8 

Public information program... . .. . . 9 

Taxpayer assistance program_. __ __ . . __ .. _ 11 

Tax return forms program . ___ __. _ 12 

Regula dons program __ _. __ ____ . . . . 13 

Tax rulings and determination letters . __ . .. , __ . __ J 5 

RECEIPT AND PROCESS(!\'(;. OF RET11RI'S ."ND RELATED Docu~mNTS 19 

Numher of returns tiled. . . _. . If) 

Informa tion returns. _. _____________________ _ _ 2U 

Service center funCtions __ _ . _ 20 

Refunds covering excessi,-e prcpayments ... 21 

Carr} back allowances. __ _ . _ n 

Aulomaticdalaprocessing ._ .. . ._ n 

ENFORCE~I£NT ACTIVITIES _. . . . . _ 2'\ 

General. _ __ __ _. _ _ . . _ 25 

Mathematical verification _______ _ .. .. ?"_J 

xautination proqTal1J . . . _ 26 

Appeab. _ . . . . , . _. __ .. . _ 31 

\"II 
VItI	 Idenfs 

ENFORCEMENT ,\CTlVITlES-Colltinuecl 

Overasscsslllcnts reported to Joint Commiltcc 

Ci"il litigation .. 

Delinquency investigations and delinquent returns .... 

fraud investigations . - - . - - - - --­

\!cohol ancl tobacco tax cnforcell1enl .- - - -­

Firearms program. 

Cases im'oking criminal prosecution
 

Fcderal-Sta te coopera tion
 

I ntcrnational operations_ - - -.­

I nforman b' rewards. - .
 

~ummary of additional tax from enforcement
 

Collection of delinquent acrounLs - . . ., .
 

Ofl'ers in compromise. . . . -. - - - .
 

Collection 11ligation le~al scn ices
 

~1'PER\"ISI0!'l OF TilE' .\1 COHOL :\:>;D TOBACCO I:>iDllSTRIES 

GeneraL _ . _. -. -, - - . - - -... - . 

AUlhorization of industry operatiuns - . - .. 

Chemical analyses rcst'3ITh .. __ . -- - - - - -- -- -- ... ­

n-premises wrervisiol1 _ ­

I nspertion of estahli.,llIlIcnts 

LEGISI .\ fiVE Dr \,ELOP\IE:\ 10; _._ 

LegIslative preparations 

Legislation enactcd_ 

Tax conventions 

LEGAL Ac:rIVIT1F.S. 

Case10ad disposal activilY 

Civil litigation 

Taxes in litigation 

Re\'enue Procedure 60 IR 

Reorgani/ation _ 

Personnel 

~[\:-I,\GE\IE!'oTA(:lI\'ITlES _ .0_. __ •••• -------.­

General. _. _ _. _ _... . .. - _. _- - .. - - - - -­ 63

Majur adllliniqrati\'e improvements and policy change's __ 63

Pagt 

34 

34 

-. - - -.'	 35 

35 

3(1 

3') 

41 

42 

3 

45 

4 

48 

49 

31 

:;1 

51 

53 

53 

54 

'is 

55 

56 

57 

59 

59 

59 

60 

60 

61 

62 

63 

Personnel 

Training. 

Facili tics maml (?;{'lI1en 

Fiscal mana(?;ClllCn t 

Long·ranqe planning 

Svstem~ review <Inc! coordiniltion 

65 

68 

69 

3 

74 

74 _., - - -­

('0 ntr'nt8 

\[AS,\GJ::ME1'oT ACTl\'ITJES-Continucd 

;urrent research program - - - -. .. - . - . - . 

.\ddsory Groll P- - - -. - - . - . - - - - - ­

Interoal t'rmtrul, -- - - -- - - . - .. - - - - - ­

nrollment of practitioners -. -' . - - -' ­

[echnical assiSlance to foreign ~ov{'rnmenl officials_. 

Statisticalreporting-.. -­ ---­ ----­ .-­ .. --- ... 

\PPC:'\l)[X. - ­

STATTC;;TIC:\L TA13I.ES 

COll.F.e"nONS, REFUNDS, AND RETURNS fILED 

.bI 

LX 

1'.Ot 

75 

76 

7 

~9

9 

--.-­ 80 

83 

1.	 Internal rc\-cnue collections by sources and by internal rc"cnl1r 

regions, disl ricls, Stales, and other areas. -. - - - . - - - HL 

2, Inlernal rcn'nul' collections by sources and by quarters 118 

3.	 Inlemal revenue eollccLions by sources 120 

[nternal re','enue collections by principal sources, fiscal years 

1940 196 L __ . _ _. -. . - - - -- - - - - - - - - - J 23 

:1. [nlcrnal revCflue refunds inc.luding interesL _ 126 

~ulllher or relurns filed by internal revenue regions, districts. 

Slale,s, and other areas_ . ' . ____ . _.. . _. 128 

I nternal revenue tax collected in Puerto Rico on manufactured 

products coming into the L'nited Stales, hy objects of taxation 130 

,\U:OUOI. ,"~n TOBACCO T AXE!' 

R.	 EstalJlishments qualified to cnga(!'c in lhe production, distrihu­

'ion, storage. or use of alcohol and alc'ohulic liquors . 130 

ESlalJlishmcnts qualified to handle or engage in the production 

or (~xp0rlalion of tobacco prodUCLs _ _ 131 

10,	 /'(;llllil.; rcia tin~ to di.>tilled spirit, under chap leI' 51, Internal 

Re\,enue; Code, 1954 . _ . _. . _,_ . . 131 

11.	 Pl·rrllit..~ for operalions rdaling to alcoholic beverages under the 

Federal Alcohol .\dminislration Act.. _. .. _ , _ 132 

12,	 I'l'rlnits rdating to tohacco under chapter 52, Internal Rc\cl1ue 

Corle. 1954 _ _ _ __ 133 

Libel acti"ily under federal .\!cohol \c1minislration Act. __ . _ 133 

S "AMP T.\xES 

14 XUIIII)(:r of occupational tax stamps issued, covering ftscal year 

1%1. or ponion thereof, by class of t<!X and by internal revenue 

repions. districts. and Slatcs __ . _. . _. 13 
_ _

x	 Oontents XI 

CASES RECEIVING ApPELLATE CONSIDERATION OR IN LTTIGATION 

Tabl.	 Pao. 

15. Appellate Division processing of protested income, profiL~, esta te 

and gift tax cases prior to issuance of statutory notice of deficiency (pre-90-day cases) . . _.. _. .. 142 

16. Appellate Di\'ision processing of prorested income, profits, estate, 

and gift tax cases in which st;] tutory notices of deficiency were 

utstanding (90-day cases)_ . . _. _. ___ ___ . 14 

17. Appellate Division processing or income, profits, estate, and gift 

fax cases petitioned to the Tax Court (docketed cases) _ . __ . 144 

18. Office of Chief Counsel-Processing of income, profits. estate. 

and gift tax cases in the Tax Court. _ .. ___ .. . _. 145 

19. Office of Chief Counsel-Results obtained in income, profits, 

e,tate, and gift tax cases disposcd of in the Tax Court. .._. 145 

20.	 Office of Chief Counsel-Receipt and disposal of Tax Courl 

ases in courts of appeals or in Supreme Court .. .. 146 

I.	 Receipt and disposal of suits riled by taxpayers in Federal 

ourts. _. . _ .. . .. _' . _. _.... __ ___ 146 

22	 Office of Chief Counsel-Ci\il tax cases decided by the courts 

of appeals and Supreme Court. .. .. __ ... . 147 

23. Receipt and disposal by the Offict.' of the Chief Counsel of collection, erroneous refund. subpena, summons, and injunction 

cases.. _. ." _ _ . __ .. . . ... .. _. .. _. _ 147 

24.	 Receipt and disposal hy the Office of the Chief Counsel of insolvency and debtor proceedings_ .. . 147 

25.	 Receipt and disposal by the Offic(' of the Chil'f Counsel of lit'n 

cases and noneourt collection litigation cases _ _... _. . . . 14R 

26. Office of Chief Counsel-Caseload report. ... _. .. .. .. . . . 148 

OST OF ADMINISTRATION 

27. Obligations incurred by the Internal Revenue Sen·ice. _. .. . . . 149 

28. Quantity and cost statistics for printing ... _. _ _.... _. . . 151 

INDEX ••••••. . . _... _. _.. _. . .• _. 153 

Principal OffWe1'8 

COMMISSIONERS OF INTERNAL REVENUE 

Service 

Name' State

FromGeorie S. Boutwell _ •••••••• _•• _ ••
 Joseph J LeWIS ••••••• •••_.......
 WIIII~m Orlan.
 

Edwald A. Rollins.. •••• _ ••••
 ColumbUS Delano ..•••_ _•••• _....
 Alfred Pleasanton.. .••• • •._ .-.,.
 John W, Douglass ._•••••_••.•••••.•••.•••..
 Daniel D. Prall .' ••••.••_............
 Graen B. Raum _•.••••••_..... •••••••••_ -.
 Walter Evans __•••••••..••••••• •••
 Joseph S. Miller. ••••••••._ ....... _ ••••••
 John W. Mason. . __••• _.......
 

MasS<lchusells •••••• __._. __ •
 Pennsylvania •..•••••••••.•••
 New York .. ._•••__ ••••
 New Hampshire ••••••.• -.
 Ohio ._•••• _...
 New YOlk •••••••••.•
 Pennsylvant8 -.
 Indiana • _ •.
 illinOIS .••••-•• ­ Kentucky......
 

West Virilnla.. ••••••••••-.
 do•.•__ ••• -...........
 Joseph S. Miller •••••••._._•••••.• ••• •. _.da. ..•••• •••••_. W. Sl. John Forman .•_ •••••••••---•• _. _..
 Nathan B. Scoll _ •••••••_. __
 Geo,ge W Wilson _ .._ ••••__ _••••••
 

JolIn W. Yerkes ._ _ •••__ .•••••••--­ John G Capers•• _ •• __••_ _...
 Royal E. Cabell.. ..•••. _•• __••_
 WIlliam H, Osllorn •••••••••••• __••_.. ,
 Daniel C. Roper •••••••.•••••••••• ••
 William M. WIlliams ••_ _..
 David H. Bla" ••_ _•••••_.........
 Robert H. Lucas.. .••••••••••~. .. _•• •
 David Burnat - _..
 Guy T HalverlOg. •••• _._ •• __•••••••••_...
 Rabert E. Hlnnegan . __ •• ._............
 

Joseph D. Nunan, Jr _••. __ "_••• _.
 George J. Schoeneman
 

John B. Dunlap _ _._•••• _._•••_••••_._ •.••.
 T. Colemen Andrews ..... •••••_...........
 Russell C. Harrlnalan •••••_•• __ _
 D.na Latham.•••__ •. _...
 

_ IIhna,s ._••.•••_. __ ••••• West Virginia •.• ._•.•• Dhlo••••• • _•••••••• __ . 

Kentucky ....._ •••• South Carolina •••••••• _•••. VlrilO'a .. _ ••- Norlh Carolina 

Sauth Carolina ••••• _•••••• AI.bama • - ••••••••••.•. NOllh Carolina •••.••••••__ Kentucky .••••_. ._. Oh,o •••_. _ _. Kansas __ •••••_ ••••• _•• __ • Mlssourl.. _ •••••.•••••__ 

New York __•••••••• Rhade Island _. Texas .. ••••••••••••• Virginia. _.... _ ••••••_. Rhode Island __ •• _ Callfalnla •••••_..... •••• Mortimer fYI. Caplin. • __ •••••••• ._... Virginia. •••• ._••••• 

NatL-Office 01 Cammissioner of Inlernal Revenue created by aet 01 Congress. July I. 186•. 

lIn addition. the follOWing were AchnR Commissioners during periods of lime when there was no Commlssianer holding lheoffiCll' John W Oauglass of Pennsylyania. hom Nov. I. 1870. 10 Jan.2. 1871; Henry C. Rogers. of Pennsylvania. from 

May 110 May 10. 1883, John J Knox. of Minnesota hom Mayll to May ~O 18113. Robert WIII,ams. Jr .• of OhiO, from Nov. 

2810 Dec. 19, 1900; Millard F West, of Kentucky.lrom Apr, 12 10 May 26.1921 i.H F. M"es, of Wash'n~lon, from Aug. 15 

10 Aug. 20, 1930; Pressl y R. Baldrlo~e. of Iowa, from May 15 to Junn 5. 1933: Harold Ii. Graves. of lilmois. from Jan, 23 to Feb. 29. 1944: John S. Grahnl, of North Carolina from Nay 19.1952. to Jan, 19, 1953; Justin F. Winkle. 01 New York, 

hom Jan. 20 to Feb 3, 1953; O. Cordon Oelk. of Virginia, from Nov, 1 to Dec. 5,1955. and from Oct. 1 to Nov. 4,1958. Charles I Fo•• af Ulah, from Jan. 21 fo Feb. 6. 1961 

PRINCIPAL OFFICERS OF THE INTERNAL REVENUE SERVICE 

AS OF JUNE 30, 1961 

NATIONAL OFFICERS 

Office of the Commissioner 

CommiSlioner •••.•• Oe~uty Commissioner .• . . .••• A$S1stanl to Ihe Commissioner 

AOss"unl to the Deouty CommisSioner .• Irector or Practlce 

JUly 

Mar. 

july

Nov. 

Mar 

Jan.' 

Aug. 

May 

Aug.

May 

Mar. 

Mar. 

Apr. 

Nov. 

Jan. 

Mar. 

Dec 

June 

Sept. 

Apr. 

Sept. 

Apr.

May 

June 

Aug.

June 

Oct. 

Mar. 

July

Aug. 

Feb. 

Dec. 

Nov. 

Feb. 

17.1862 

18,1863 

1.1865 

1.1865 

11 1869 

3: 18H 

9,1871 

15.1875 

2,1876 

21.1883 

20,1885 

21.1889 

19.1893 

27.1896 

1.1898 

1.1899 

20.1900 

5,1907 

1. 1909 

28,1913 

26.1917 

1.1920 

27,1921 

1.1929 

20.	 1930 

6.1933 

9,1943 

1.1944 

1.1947 

1.1951 

4.1953 

5.1955 

5.1958 

ToMar. 4.1863 

June 30,1865 

Ocl. 31.1865 

Mar. 10.1869 

Jan. 2. 1871 

Aug. 8.1871 

May 14.1875 

July 31. 1876 

Apr. 30. 1883 

Mar 19,1885 

Mar. 20,1889 

Apr. 18. 1893 

Nov. 26.1896 

Dec. 31,1897 

Feb. 28, 1899 

Nov 27.1900 

Apr. 30.1907 

Aug. 31,1909 

Aor. 27.1913 

Sepl. 25,1917 

Mar. 31,1920 

Apr, 11.1921 

May 31,1929 

Aug. 15.1930 

May 15.1933 

Oct. 8.1943 

Jan. 22.1944 

June 30.1947 

July 31,1951 

Nov. 18.1952 

Oct. 31.1955 

sept. 30,1958 

Jan. 20,1961 

7,1961 1----··..·..··· 

............_ _ 

flst.tllt1anslement officel: . •••••_•••••_••••••••••••__ ._•••••••••••••••_Gray W. Hume. Jr. 

Administration 

:l3I$tanl Cam missioner•• _. •• • .. _.•..••••••••••••••.• __••.••••• Edward F. Preston 

••.•.•• •.••.•••• Mortimer M Caplin ••. •• ._ • Bertrand M. Hardll1g ....... __ ••.•Edwln M. Perkins • Albert W. Brisbin •• ••••• _ •••••••••• ..Thomas J. Reilly 

oxetUllve A"istant to the AS5I51enl CommiSSIoner lrec l.or. Program Statt 

O..lSlon Directors:
 

~~tlll~es Manalement ••••• _Brute McNair
 

p b'Wn~el ••.•, •••••••••.__ ••••Alborl J Schattor
 U t nfOnrulllon _ ..... •••• Lawrence George 

Ins}>ef:tion 

~~~~nt Commissioner •__	 __ ••• 01 . Ive Asslstanllo the Assistant Commissioner .• __ .• __ VI; on Dirll(lors:
 

Internal l\ud'L. •• • __ __.Francis I. Geibel
 

•••••• _•••••_ •••_ •••••••••__••Phllip A. Hoffman ....__ ..._••••_. __•• •• _ _••••.-••••...... _...Vacant

Reparts _ .• __ •• _Horry It Dellinger Trall1lng ._••••••••••••~. _EdWin N, Montague 

_••••••••••••••••••••_•••••••••Vernon D. Acree, Jr. ._•••_. Frod G. Robinette 

Inlernal Seeunty William A. Kolar 
XII Principal Officers 

O~ratioQS

Assblant Commissioner- ._ ••. .- ----._._ •• • • ._••• ••• _. Wililam H. Loeb 

Executlv. Assist.nt III the Assislant Commisslon.r .. • ._. __ •••• _._ ••• _•• __ ._ •••Arthur H. Klolz 

Di..s,on Directors: ADP . .__ •.•• . Robert L. Jack AudIt. ••• __ ._. ••.•._._ ...Dean J. Barron 

Alcohol .nd Tobacco Tax_. _. •__ Dwlghl r. Avis Collect,on ••• .__•..• H.rold E. Snyder Ap~ell.te ._._••_ .. _. __ •__ Henry J. Donnelly, lr. Intelligence • .._. •__ • H. AI.n Long on,co of Intern.tion.1 Operations_ .CI.rence I. Fox, Jr. 

Planning and Research 

Assistant Commissioner. _ •••. .••.• .... _ .-.•. _ 0.· .. __ .• ._ ••. _Vacant 

D,vision Drrectors:
 

PI.ns a"d Policy __.••• .••.lames R. Turner Rese.rch___ •• _._ •• _._ ..••• Rich.rd W. Nelson
 

Systems Developmenl. • Wllliam H. SmIth St.llSt,cs _. __ ••• __ ._ __Ernesl J. Engquist, Jr.
 

Technical 

Assistant Commlssloner._ -••_•••__ '" •• .•• •••• •••• _. ..•• __ . Harold T. Swartz 

Prlntip.I Assistanllo th. AsslSlanl Commlssioner __ •.. __ •••••_._. __•• . __ • " _ •••• • Joseph S.lucker 

hecutlve Assistanllo the AS3istant Commissioner .' ..__ . • . .. •• _. __._Henr' Wood.lr. 

Chb'~,~~~aorrecto~·---·--··------·---·········-·--· .--.-.., - .---. ---. ..---.- __ Albert E. Krlpk. 

Intern.tional Tax Relalions .. __ ... __.Eldon P. King Speci., TechnIcal Services ,. . Ned W. Arick 

Tax Rulings. •.• ._._John W. S. Littleton TechnICal Planning __ •• _.____.M.ullce Lewis 

Office of the Chief Counsel
 

Chief CounseL .•__ . . ._
 .-.--- _.• "'_~ """'_' _. ••__Vac.n' 

Aaslslanlto the Chief Counsel • .. _._. __ •••• ••.•Howard A. D.wson. Jr. 

Associate Chi.f Counsels: litigation • __. .•• _._RudY P. Hertzog Technical. _Herm.n T. Reiling Asslsfanl Chief Counsels. 

Tu Court .nd Refund litrg.tlon.••. • ._._ - __ .. __ •••. __ .••••__ .•----- •••. R.ymond F. Brown 

Enforcement .nd COliectlon•••... •• _. ___•. _._. •.__ ..••.• _. __ ._ ••__ •• E. Riley C.mpbell Technlc.I•• ••_.. ••• ._.__ ._ ••. _•._ ___ . •••• •. .• Thomas McP. D.vis 

Division Direclllrs: Tax Court ._. •__ John T. Roger Enforcement _._ .•.. ___ Rich.rd C. Schwartz
 

Refund Lltl~.110n-------.- ._Snmuel E. Blackh.m Alcohol.nd Tobocco Tax Legal __ • Robert B. Ritter
 

Joint Commlllee.• _•••. •.•_._.Dean Mathis Legislalion and RegUlatIons __ . __ .Samuel R. McClurd
 

Co/lechon Lillgation ._•.. __ ._._1. Waller Fe,genbaum Interprelaltve... . •..•_ ._.Rlchard M. H.hn 

REGIONAL AND DISTRICT OFFICERS 

Atlanta Region
 

Regional COmmlssioner •• _. _
 •• Willi'lm J. Bookholt 

Assistant Reglon.1 Commissioners: Administrat'on. . __ . __ • Burton M. Graham AUd,L __ • __ ._ .• _..... ._ •. __ H.rold B. Binds.il 

Alcohol and Tobacco Tu .. •• ._Louls E. Howell ColI.clton.. . ._._ ""_ • ._ W.yne S. Kegerrei, Appeliatn•• • •• ._Norm.n C. Bailey Intelligence _.. _. _._ ••• _.• _.Allen T. Ho/llnr.ke

District Directors: 

Atlanl., Georgia•.•__ ••• . ••. __Aubrny C. Ross Jatkson, M,ss ••. •••• J.mes L. Enochs 

Birmingham, AI••. _•.• __ .•. George D. P,llterson, Jr. J.tksnnvllle. Fla .. ._. __ .__ __Laurie W. Tomlinson 

Columbia, S.C . __ •__ . . _Harold M. McLeod Nashville, Tenn. .._.•__ • . __ J.m.s M. Rountree Green~bo,o. N.C•••• _. •__ • .John E. W.II 

=::jg~:l f:sup~~~-r._:.=·._..._:::--_-_· __:::_-:._._:~::::: .::::: ::::._::._:.-: .-.- ::::.-.- :_~~~~aTio~I~C~~I~·n~li Dlreclor. AUanla Service Cenler, Atlanta, GeGrgia ..__ .•• • • __••••• "_, ,, ,_,_,,, Robert H. Terry 

Boston Region 

Regional Commissioner.---_.••• _••• __•.• ._•. __ . .... . .. __ •••• __ ._ .•••• . __Don3ld W. 8JIcon 

Asslstanl RegIonal Commls,loners: 

Adminlstr.tlon •• __• ••••• __ ..•Maurice J. hgg.rl AUdIL._.. __ ._...... __ •__ ._. __Charles G. Keebler 

Alcohol and Tobacco Ta. __ •• __ HarOld L. Henneberry Colleclton. ,. •. __ . • __ • Fred W, Turpen Appellate . .. .Stephen C. Volpone Intelligence_._.• ._._ ••••• _•••••• __ John J. Deneen 

Distnct Directors: 

August•. Main..._•.•_.... ._.Whitney L. Wheeler HartJord. Conn. ._ ••• • _Joseph J. Conley, lr. 

Boston, M.ss •. _._ ••• ._. _Frank J. Cev.n.gh Portsmouth, N.H ._..._. _.... _ Ch.rles W, Emlet 

Burlington, VL. __ .• __ ._•. . __ Fullon D. Fields Prov,dence, R.I ._...__..John A. O'Conneli 

Rogion.' Counsel ._._. __ •. •• _•• _._ .. •.• __ .. _._. •..•••.. .John W. Edwards 

Region.llnspeclo, • •__ ._ .• _____._.. _ • _...•Em.nlJel M. Schuslor 

Director, North.aslSerVlce Cenlor, t.V/renc~, M.ss •. ••••• • __ . __ .._••••.. . __ .Wllli]m H. We..er 

Chicago Region 

Region.1 Commissione.• • --.-.-.---.- __ ..• _•._. •. . __ .... ••• Dougl.s L. B.rnes 

Assistant R.gional Commissioners: 

Adm,nistration •__ ._._ ..• _•• __ .. _William F Sul"van Aud,t ..__ •••••• ._ .John W. Baud.ndlSlel 

Alcohol.nd Tobacco Tax __ •.• _. W,II"m A Collnwn COllec!ron.. _•. _.. •.••••• _. . Ervin B. Osborn 

Appellate __ .. •. __ • W.llac. T. MOllis Inleliigenco __.'_ .• • • .. _Wilham B. M.yes District Dtrectors: 

Chicago,III ._._.•• __ •..._ . __.Hatold R. All Mllwankee. Wis __ • .•_._._._.. __ .Emil J. Nelson 

Oet!oll, MlCh _...,. • .R.phaoll. N,xon Springlleld, 111... • •••••••. __ lay G. Philpott 

Regional Counsel . __
 Regional Inspector _ ... .. ._~~~~~ FV}c~~~
 

I' 

Principal Oflicer.~ XlII 

Cinclnnati Region 

Reglon.1 CommlSSlon.r - _., _. _______ . _. • ._. _.•• • _. Ernest H. Vaugh" 

Assilt.nl Reglon.1 CommisSIoners: 

AdmlnlStrallon ._ F De.n McCrory udlt •. • ••••• Micha~1 A. DeCuire 

Alcohol and Tobacco T.x_. ._ ._ Henry R. Peterson Collecl,on •. __ • _ _ _Wilh.m J, Grabo 

Appellate ,.• _G. W.ldron Snyder Inl.lhgence •. ._._•••• .. _Thomas P. MtGo.ern 

Dl,tricl Drrectors' Clntlnnali. OhIO.. ._. ••__ .. Phlllpp L Charles LoulS.ille, Ky •__ .. •••• • _Gilbert C. Hooks 

Clev.l.nd. OhIO .• _ .• _••• __ . __ ._._Melvtn J Burton Parkersburg. W. Va..• • •• Nathantel Looker 

IndlanapollS,lnd •.•_.,.___ • Slerllng N. Dltlrich R,chmond, V•. __ • ..______ __Cllnord W. Glo17b.ch 

R.glonal Counsel . . . ._. •.. _. _•• • ._ •. •••• _._._. __ ..Clar.ru:e E Pnte 

Region-I Inspector _••.. _.•_. -.. . • . •• _._. ••• Gordon M. Anderson 

DIrector. Midwest Servoc. Center, K.nsas CIty. Mo .• __ . . ...• •• • _Arnold S Dreyer 

Dallas Region 

Regional Commlssioner__ -.~ _----------------------~ , • ---- .-- ....... ....... -_._--- •. _B. Frank White
 

Asslsl.nl Reglona' CommIssionersArlmlllislr.t1on .. .... Ror W. Hann Alldll. ..... _.• __ ... _. .lawrence M. Slewarl 

Alcohol and Tobacco Tax __ _ •__Joseph F. Black COllection • ••••• __ _._ Allred N. Kay 

Appellate. .__ _ -__ ,.. Tom F. Reese Intelligence_ •... •••••..••_._.WIlham E. Beloale, Ir. 

Olstrlcl Austin, Directors: rex. ._ ••••••• Robert L. Phinney ..L,llle Rock, Ark . .._._Curlis R. Mathl' Albu~uerQue, N. Me._. __•••• Clyda L. B,cker<llarr New Orleans, LI •• __ ••_. __ . __ • Chester A Usry D,.II.s. T.x .. . •• _Flhs C.mpb.II, Jr. Oklahoma CIty, Okla._...•••• .Earl R. Wisem.n 

~:::~~:: ~su;:c~~·r- -.-.-_~-_-...-_~-.--__..••._----._..~~ ~_~-.. __••: •. -:_-:_~-.___.__~-..._-_-...:._..-_. __..-::._ :_~-_-:__::.-..-..·:6a~ilo.TllnW':;~'j!.

New York Ciry Region 

Region31 Commlssioner_ . .• •• __ . __ • . ._. . __ • __ •__ • ._Howard D. T.ylor 

As>istant Reli~n.1 CommISsioners: AdminIstratIon . .• Nolman D. Nowak Audll __ .. .••_._._. __ •. _Charles A. Churc 

Alcohol and Tobacco Tax _ ...F. Vrrgil Welsh Collection_ .• •. ._ .•_•.•_..__ Elmer H. trllnsman 

Appellate_. . .••.. _ R.lph M. Horne Intelhgence_ ..... .. __ ._ .. _.. Fr.ncls J. Kennedy 

DistrlclDrreclllrs: Albany, N.Y __ • .. _ James A. O'H.r. Manh.U.n ••• _.._.• __ ..•. ._. Kenneth W. Moe 

Bronk ,n, N.Y_ ••_.•••••• __ .._Thom.s E. Scanlon Syracuse, N.Y.... ..•.. ... _.R.ymond H. Reichel 

Buffalo, N.Y ,_.. _ Eug.ne C. Coy I., Jr. 

~:~~~:I fn"su;:ct~-r: ::::::::::::::::::::.::::~:::::::::_:::::::::::::::::::::::::::::::::~~:~~kt f~~~~~~~e,

Omaha Region 

Regional Commission.r . ._ __ •• _. . __ . •__ .•. •. _. . Hom.r D. Croasmun 

Atilstant Reglon.1 Comm,ssloners, Adminlstr.tlon .• __ Orland V. Sl.ele AudIt.. __ ••••_••• • _••..Rohert 1. McCaUley 

Alcohol.nd Tob.cco Ta•...•. __ •.. W,lli.m K. Liliey Coileclton . '" .... __,_, . •_Clarence E. R.ish A~p~II~le. __•. ._._. _.V."ce N. Bales Intelhgenc.__ .._. __ ._ .. __ . __ •..• ...Harold B. Holt 

D,slnct Directors: 

Aberdpen. S. Oak •• •• William C. Welsh K.nsas C,ty, Mo .•. • • Edwln O. Bookw.lter 

Cheyenn., Wyo. .._ . ... H.rry F. Scribner amah., Nebr..• .._._. __ •••. __ .RIct13fd P. VInal 

Denver, Coin.. ••••• . V. l.e Phllilps Sl LouIS. Mo .• _. ._•.. ._•._.. _Alvin M. Kelley Des MOInes, low•••• • __ Ernest W B.con St P,ul, Minn. . . __ .. Geor~e O. Lether! 

F.,.o, N. Oak. _• . •• Byron J. Rockwood WIchita, Kans •... .. __ ._Gustave F. Koehler 

Rellonl1 Counsel _.. . _. _. . ._ •••• Frank C. Conley Regionll Inspeclor _. . _. " . _._ .. _ Wlnslow B. R.ndall 

Philadelphia Region 

Regional CommissJonor. _ _. . .... . . .. . _.. _. '_" . ._ ..AI.a M. Meyers 

Asslslant Regional CommlSsion.~.

AJlm,nlStration _. •. _.... Rob.,t 0, McDowell AudiL. ._•• •__ .Joseph M. Shatz 

~Icohol.nd Tobacco T.x,____ _. ,LOUIS DeCarlo COlieclion. • ••• _•. _. __ .Edward J. M.nning 

· t"peID,ate. --.-.--- ------••_._Wllham E. Stoynen Inteiligence ._ •• . _. .Wesley E. Craig DIS flct uectors: ~aliidore. Md__ ___•••••. __ Irving "'.chi P,ttsburgh, P•.•_. ._. . __ ._ ••..John H. Bingler Nlm en, N.J. __ . .• __ •• __ •• _.Chns L. Gross Scranton, Pa . •••••• __..._Rlchard P. Brownell 

p~i·r. N.J ---.--•••.--- - _.Joseph F. J. Mayer Wilmington, D.1.. .• __ •• .•.. Horac. L. Brown 

Ia elph,a, Pa_ ._. __.•• _. .•Edg.r A. McGinnes 

::fl~~:: ::sup~sc~~-r·---·-···--·---- .----••- ----- •••• _. ._. •••• ._.. _._._..Cecii H. Haas -.. _. . . . __ • ._.__•__ .•..• .. •• _._._William A. Costello 

San Francisco Region 

~~I~:'..aIICoRm~r"ssioner._., • •__ ._ •.• _ ______ .•. •• _._._ ..•_. __ .•••. __ ._Harold H.wkins 

l'On pglonal CommISSIoners' 

~~~~nilstr.t1on. • . '_. _.Homer C G.nl Audit _. ._. . .R.ymond F. H.rless 

App 11 and TObacco Tu •• • lsham Ratley COlloclion _ ._ ....._._ .• __ .••••••__Everell L. Meek 

Dls'r·c·' Date --.- -- ••• _. __ .Gardlncr B. Willmarth Intelligence•.•• _. __ .. •.• _. O.niel L Tucker I Irectars· 

~~choli!.e, AlaSk•• ._••.__ . __. Lewis J. Conr.d Portl.nd, Oreg_ ._. • . .Arthur G. Erickson 

lIel,e. Mho-.--.--------.-._--- C.i.in E. Wri~hl Reno, Nev •__•__ . ••• ._ .D.lmon D.vis 

Ho °11 j onl .• --- - _.__ ._••.••_Frank J. Healy Salt Lake City, Utah ._ •• __ ._._••• ._Roland V. Wis. 

Lo:'Au u. Hawall._._. •... V.ughn W. Evans San Fr.nClsco. Calif ..__ ••• _••• _Joseph M, Cull.n 

Ph ~gel.s. Calli•.. __ ._.__•• _••_Robert A. RIddell Se.ttle. Wash •• • .. Neat S. Warren 

R . O.n,x. Anz. ••. ._.__ .Wllson B. Wood 

~1~~:\ W:;:t~~r·.::: ~:::::::::::::: :::::::::::::::::-.::-..::::::=::::::::::::::::::::::::-..::: ~He~~I~ ~,Steil: I. estorn Service Center, Ogden, Ulah •• . . __u ... _n_•••• • Fredenck W. Bearm.n
'II" I ••, 

InlllCt .....lIf 

o t. ,ui.. ,11r.IfU· .htl" * hllin b ••us IUf 'If 'rslflCl Illltli 

I lind '.lld" 

• SI"IU'IIl" 

, '1111 tu1tr 

Internal Revenue Regions and Distrids 

r---------------. T • ,.,1110 .. ' -------------------J' 

L fll INTERNAL REVENUE SERVICE -CH-'·,E~C~.""E1.'" J

I COMMISSIONIR r C~

__._JRECTOROF PRA.CTICE ------------ o.lfIr"IItr CommluIQn.,. 

.... ··l • h ••, '••• 

'Or.,.­I 

'OP..I, II II 

.P_H

.,-.. ! 

.,

, 

'-' I " . " 

L.1" TIr)Oil 

-.''OOc. i::'_1 (,;_••1 

.... I .....'CIt.' ,=-,.1 n o 11.fOlo'\ 

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h.L I 

• r.ll..... l 'ia1~

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• !<t.... c_,," • _'"'"" l lflo'~"

• fa-e-· 

Internal Revenue Service Organization 
NOTES 

All yearly data are on a fiscal year basis, 

unless otherwise specified. For example, 

data headed "1961" pertain to the fiscal year 

ended June 30, 1961, and "July 1" inventory items under this heading reflect inventories as of July 1, 1960. 

In many tables and charts, figures have 

been rounded and therefore may not add to 

the printed totals which are based on unrounded figures. 

J \) -*, ... t 

report
 

on 

• operations 

Pt.~C'lt

1961 1960 ofinae:ue 

(Millions) COMPARATIVE. HIGHLIGHTs. 

Gross receipts ... . .... $94.401.1 $91.774.8 2.9 

Refunds: 

Number. . ................ 40.2 38.0 5.8 

Amount. _..... .... 

Returns filed. ......... . 

Taxpaycrs assisted. _.... 

Rcturns examined _. 

Additional tax from enforcement_ 

. .. . . . . $6.0311 $5.293.6 13.9 

. ..... 95.8 94.4 1.5 

. ...... 10.4 10.2 1.4 

. ...... 3.5 3.0 16.2 

$2. 129.7 $2.052.5 3.8 

Taxpayer delinquent accounts collected: 

Number.
 24 2.2 12. I

Amount. _...... . .......... $1, 092.3 $941.4 16.0
 
INTERNAL REVENUE COLLECTIONS
 

fiscal years 1961 and 1960 

(Billions) 

1961 

46.1 44.9 1960 

Totals:	 1961-$94.4 billion 

1960-$91.8 billion 

21.8 22.2 

14.0 13.5 

12.5 11.2 

All other 

income taxes 

Corporation Individual Employment taxes 

income taxes (estate, gift, and ex'

,111 internal revenue 

coUections and

refunds 

General 

Intemal revenue collections in fiscal year 1961 reached a record high 

of $94-.4 billion. This was an increase of $2.6 billion, or 3 percent, 

over the amount conected in fiscal year 1960, 

t is significant to note that approximately 97 percent of total revenue 

collections are voluntarily paid by taxpayers under our self-assessment 

ystem. One of the primary objectives of the Internal Revenue Service 

is to preserve and strengthen this system. Activities directed toward this 

objective are described in other sections of the report. 

Increased collections were realized for all major sources of internal 

revenue. Income taxes rose by $0.8 billion, or 1 percent; employment 

ta.xes b)' $1.3 billion, or t 2 percent; estate and gift taxes by $0.3 billion, 

or 18 percent; and excise taxes by $0.2 billion, or 2 percent. 

The $0.8 billion increase in income taxes was the net effect of $1.2 

billion additional individual income taxes and $0.4 billion less corporation income taxes. The gain in individual income taxes, which repre<;cnts	 almost one-hall of the increase in total revenue, reflected the 

rise in the national level of personal income, and particularly in the wage 

and salary component of personal income, from calendar year 1959 

to 1960. The drop in corporation income taxes resulted from the 

decline in corporate profits in calendar year 1960. 

~I?-age and disability insurance taxes provided more than half of the 

addl~onal revenue collected in fiscal year 1961 compared with 1960. 

!he Increase in these taxes reflected not only the higher level of personal 

IJlcome but also the rise in tax rate (from 2.5 percent each on employers 

and employees to 3.0 percent each) which was in effect for all of fiscal 

rear 1961 but only part of fiscal year 1960. 

Refunds of internal revenue, comprising both principal and interest 

:?unts, aggregated $6.0 billion in fiscal year 1961. This was $0.7 

ton more than in the preceding year. Gross collections, less refunds, 

~ere $88.4 billion in fiscal year 1961 compared with $86.5 billion in 

ISCal year 1960. These amounts will differ from net budget receipts. 

3 
-----

5 

4 A l17/w7.l Repm't 

Net budget receipts exclude refunds and amounts transferred to trust 

funds, and include collections from customs and miscellaneous sources. 

In fiscal year 1961, approximately $12 billion of employment tax col· 

lections and $3 billion of excise tax collections were transferred to trust 

fund accounts earmarked for specific purposes and, therefore, do not 

represent net budget receipts. 

A comparison of collections in fiscal years 1961 and 1960 by principal categories is shown below. Internal revenue refunds are compared by year and by type of tax on page 7. 

Jaccrual revenue collections 

(In thousands of dollars. For details, see table 3, page 120) 

Source 1961 1960

Grand total'_ 94.401. 086 91,774,803 ... ---. -.---....... -..--..... ------- ~- - ...----------......
 == =--~.

Income taxes. total._ 67,917,941 67.125,126

Corporation --- ---- ------ -- ---------••--•••----••-----.---.-•••• 1 21.764,940 22,179,414 

Individual, total. .~----- -~._-- ----.-----...--- .---_...----_....-­ 46,153,001 44,945.711 

32,977.654 31,674,588 Other' • __ Vlithheld by employer' ---------...__ ..---. ----_.... --.-._---­ 13.175,346 13,271. 124 

=== =--­ Employment taxes, total._. _._ _. . __•••• • ._... 12.502,451 11,158.589

-_.­ Old·age and disability insurance , • •__.________________________ 11,586,283 10,210.550 

Unemployment insurance _. • ••• 0_.__ • __••• __ 345.356 341,108

Railroad retiremenl __. __ '" __ • __ -. . ._______ 570,812 606,931 

=~=::::::-===

Estate and gift taxes ._•• •• _. •• 1,916,392 1,626,348 Excise taxes, total. .. _. __ • __ • • • __ • • ._ 12,064,302 11,864.741 

Alcohol taxes. __ .... _---..... _.- - ~-" .. ---­.... ----_._---~------_. 3,212,801 3,193,714 Tobacco taxes . •• ..._. •• •••• • . __ •__ •• __ 1,991. 117 1,931,504 

Other excise taxes. 6, 860, 384 6, 739, 522 

Note.-Calendar year figures by regions, districts, States, and other areas, for selected types of taxes, may be obtained 

from the Public Information Division, Internal Revenue Service, Washington 25, D.C. 

, Coliections are adjusted to exclude amounts transferred to the Government of Guam. For details, see table I, p. 102 

and footnote 6, p. 124. 'Esti",atell.-Collections of individual income tax withheid are not reported separateiy from old·age and disability 

insurance taxes on wages and salaries. Similarly, cellections of individual Income tax not wllhheld are not reported sepa· 

rately from old·age and disability insurance taxes on self·empioyment income. The amount of old·age and disability I nSllrance tax collections shown is based on estimates made by the Secretary of the Treasury pursuant to the provisions 

of sec. 201(a) of the Social Security Act. as a:nended. and inciudes all oid·age and disability insurance taxes. The esti· mates shown for the 2 classes of individual income taxes were derived by subtracting the old·age and disability insurance 

tax estimates from the combined totals reported. 

Income Taxes 

Corporation' and individual income taxes together account for 72 

percent of total internal revenue. Corporation taxes represent about 

one-third of all income taxes, and almost one-fourth of all internal 

revenue. Collections from this source in fiscal year 1961 were largely 

attributable to corporate profits realized in calendar year 1960. The 

drop in collections from fiscal year 1960 to 1961 reilectecl the drop in 

corporate profits from calendar year 1959 to 1960. Refunds of corporation income and profits taxes, mostly representing carrybacks of 

operating losses, were $0.1 billion higher in 1961 than in 1960. Gross 

Report on Operations 

collections from this source, less refunds (including both principal and 

interest) were $20.9 billion in 1961 compared with $21.4 billion in 1960. 

Individual income taxes account for two-thirds of all income taxes 

collected and almost half of all internal revenuc. Ovcr 70 percent of 

all indi\'idual income taxes are collected by withholding on salaries and 

'Nage.~. T,Lxes withheld during fiscal ycar 1961 relate to salaries and 

wages recei"ed in part during calendar year 1960 and in part during 

calendar year 1961. The rise in collections of withheld taxes in fiscal 

veal' 1961 reflects the growth in the salary and wage component of per­

~unal income which occurred during the period represented by withholding collections. 

,\lmost 30 percent of the individual income tax is collected other than 

by \, ithholding. In fiscal year 1961 this source largely consisted of inrome tax paid with respect to calendar year 1960 income, and amounts 

of estimated tax paid ,\ ith re~pect to bot h 1960 and 1961 incomes. The 

non·withhe1d component of individual income taxes dropped slightly 

in fiscal year 1961, 

Almost all individual income tax refunds are attributable to excessive 

prepa)ment of tax, mostly in the form of over-withholding. In fiscal 

year 1961, such excessive prepayments totaled $4.8 billion, or $0.6 billion 

morc than in 1960. Gross collections from the individual income tax, 

les~ refunds of excessive prepayments, were $41.4 billion in fiscal year 

1961 compared with $40.8 billion in 1960. Refunds of other individual 

income and old-age and disability insurance taxes approximated $0.2 

billion in each fiscal year. 

Employment Taxes 

Employment taxe.') of all cla~ses account for 13 percent of aU internal 

revenue. These mainly consist of old-age and dis3.bility insurance taxes 

which increased by $1.4 billion in 1961 as a result of both a higher 

nationallcvel of salaries and wages and the increase from 5 to 6 percent 

in the combined rate on employers and employees which became effective Janua!) 1, 1960. Unemployment insurance taxes rose slightly in 

1961, while collections under the Railroad Retirement Tax Act derreao;ecl as a result of the decline of employment in the railroad industry. 

Excise Taxes 

Excise taxes, including alcohol, tobacco) and all other categories, 

com prise almost 13 percent of total internal revcnue. These taxes rose 

by about $0.2 billion in 1961. Over half of the increase occurred. 

among those other than alcohol and tobacco. 
G Annual Report I 

Alcohol ta.x collections increased by a relatively small amount in 1961. 

None of the tax sources showed an appreciable change from the previous 

year. Tobacco tax collections increased, consistent with the DOnnal 

,g-rowth pattern in the consumption of small cigarettes. 

Changes in the taxing structure which affected excise tax collections 

included the increase [rom 3 to 4 cents per gallon on gasoline and diesel 

fuel which was in effect all of fiscal year 196 t but only part of 1960, th 

decrease from 20 percent to 10 percent in la." rate for cabarets and roof 

gardens which became effective toward the close of fiscal year 1960, and 

the broadening of the tax base for air conditioner~ as a result of an ad. 

ministrative ruling effective December 1, 1959. 

Collections of certain manufacturers' excise taxes, such as those im. 

posed on motor vehicle:; and most other durable goods dropped in 1961, 

reflecting the decline in manufacturing output. 

Refunds of excise taxes approximated $0.2 billion in each of the 

fiscal years 1961 and 1960. 

Internal Revenue Refunds 

In 1961, refunds increased both in number and amount. The 

number totaled 40.2 million, a 6-percent increase, and the aggregate 

amount, including interest, was $6.0 billion, a 14-percent increase. 

As in 1960, individual income ta.'I: refunds resulting from excessivt. 

prepayments comprised 94 percent of the number and 79 percent of the 

amount. These refunds numbered 37.8 million and amounted to $4.8 

billion, including interest, increases of 6 and 14 percent, respectively. 

Interest allowed on refund~ increased by $6.4 million, or 8 percent. 

The largest increases were in interest allowed on refunds of corporation 

income and profits taxes resulting from examination, and on individual 

income taxes resulting from excessive prepayments. 

bout 1.4 million gasoline ta.'I: refunds to farmers, transit systems, and 

users of nonhighway vehicles aggregated $123.9 milHon, an increase of 

16 percent over 1960. 

The following table compares refunds in the past two years, by type of 

tax: 

.. Report on 0 peratioll~

Internal revenue refunds. including interest
 

IFar refunds by regian and dlslrld see lable 5, p. 1261
 

- I Amount r.'"oded Amaunt 01 mteralt 

[11,1. tal 

li,IIIU....­

R.,i..d. 'lm lh,n lSOO. 1 Fiaurn have nol been re<luced to r_tlecl relmbursemenls from the Federal Old·age .nd Surui1lOrs and Federal Disability 11\t'"lntlJTrusl funds, amnunlmglo 195,740,000 In 1961, and l89,190,ooo m 1960, rrom Ihe Highway Trust Fllnd, >mounli nf 

It lI25,703.000 In 196\ and lI03,473,000 m 1960, and from the Unemployment Trusl Fund, amounllng 1o $2,245.000 In 

1001. 

Ilhl 01 75,750 undeliverable chll(ks tolalin, $3.876.000. 'I~;ludos re'unds "oot otherwise classIfied' which were formerly shown separately. • In,lu~e, dl~wb.cks and slomp red_mphons. • lul"des narcotics. silver, waeeling tax (elcise and sl.mps), capilal stock lax, and alher elcise relunds. 

I 

Number (principal and mter· included (thousand est-thousand dollars) doll.,,) 

T,pe of tax 

1961 1960 

~I~ 1961 1960 

:.".Ii.'''",' ,~oo"' ',1""''' '" '3>,"" '" ·6,031,107 5,293,571 82.798 76.438

--­ :ome and prohts t,xes 97,818 93.305 869,274 740,276 58,781 54,939 me and emplayment laxes .. . __ .• _. ..._ '38,663, /82 36,453,338 '4,933,026 .4,340.791 19.679 17.642 - ._._-_. -_1__­

'payment Income lax .... t 31,805,99/ 35,590,900 '4,766,490 4,11)3,835 8,529 6.918 j, I., and aid age Ind diS' 

Hance'... ,~----- ... ------­ 838,411 847.744 11)3.721 174,329 11,090 10.661 

lemll11 •.._---.--. 62 69 99 66 (0) 2

,nllnsur,nCll. __ •.•....•••1 18,712 14.625 2.716 2,561 60 62 

= -­ -­ ..­ ----------­ ...­ 6,441 4,947 23. 073 20,954 3,415 2,233 ......------.­ .... -------_. 713 581 902 1.609 95 11.5 

,tal .......----..... .. 1,429,097 ' 1.444.043 204.833 189,941 828 1,499 ._-­--­ 1'.­ __• ___ . 10,253 11,652 67,120 67,210 5 3 '5 ' __ .-a __ 1,277 1,847 4,629 4,894 (0) (0) IS' Ind retail;,;s'-eicisi'-t~les: 1. 403, 430 1,414,686 127,257 111,174 312 709 

Ise blUS '. . - .. _._---­ 14,137 15,858 5,827 6,663 512 786 

fat.lr 

ll'QIJliolJl i 

lad"tdJ"I,nl 

1lI1.1' 

h,t'SS!,e p l~~r Incom 

,lIibly,n'

Inroad rei 

Unemolo,m 

EtCi" L1xes, 

Alccholill 

TOl.>cco II M..ufaclu 

II athar e 
9 

interpretation and 

communication of tax 

law to taxpayers 

General 

To assist taxpayers to clearly unden>tand their rights and responsibilities, the Service prepares and distributes basic regulations, rulings, 

tax fonns, and instructions. I t also publishes a series of ta..x guides (including a school kit) and disseminates infonnation through the various 

news media. Dic;trict and local offices work closely with taxpayers by 

giving individual, group, or telephone assistance to those in need of infonnation to correctly prepare their tax return, comply with filing requirements, or meet pClyment deadlines. The Service is concentrating 

on improving these programs of service because they are vital links in 

our self-assessment system. 

In addition, Service officials speak before accounting societies, bar 

associations, and other interested groups on currrnt tax matters that are 

in controveNy or whieh require explanations that will assist taxpayers 

to fulfiU their obligations, 

Taxpayer PUblications 

The objectives of the Service's taxpayer publications program are to 

educate taxpayers as to the requirements of the Federal tax laws and 

their rights thereunder, and to provide clear, understandable, and deReport on 0 pf'ratfmM 

'd R\VCTS to specific problems, so a.. to enable them to properly 

t:\Ik ~rotheir taxes with a minimum of time and effort. Publications 

(mnptl under this pro~am include tax guides for various classes of 

prtpar. ni information guides on the taxation of aliens and nonresident I:lXpayc , ~. d S ·tizens, and taxpayer a.,<;,'Hstance ocuments. 

U. ~~,~lrage sales tax tables for 34 States were printed and distributed to 

h· district offices concerned. The tables were published by local newst e "" and used bv Service personnel to a~ist taxpayers in detennining pape.., , . asonable sales tax deductIOns. 

rC Tnx guides.-Several of the most widely used taxpayer publications 

the detailed tax guides prepared for different classes of taxpayers 

uch as small busincsses, fanners, or aliens, and those covering the tax 

[feet of special problems common to broad segments of the population-for example, community property righLs and major disasters (see 

p3~e 84). 

Information guides.-Pamphlets on the taxation of aliens or nonrr.;ident U.S. citizens, which may be obtained without charge from 

i~trict offices or U.S, embassies and consulates, are the Infonnation 

Guides (Office of International Operations) listed on pages 85 and 86. 

:~payer assistance documents.-From 1,000 to 110,000 copies of 38 

mi~ellaneous taxpayer assistance documenL<; ranging in size from 2 to 

page. were distributed frec to taxpayers. Each publication contains 

uctailed and clear-cut explanation of the rules applicable to certain 

rnhlr.m areas. The various publications are designed to expedite and 

IIICrl'asc the effectiveness of the Taxpayer A,sistancc Program during 

the: filing period, and Lo minimize the need for individual assi.<;tance to 

l:lxpa~rrs by personnel of the Internal Revenue Service. The booklets 

an; u~cd b, technical personnel in the I\ational Office and in the variou'i 

firld.. offices as inserts in replies to inquiries from taxpayers regardinR 

pal1lcular problems, In some instances they are utilized as supporting 

8lcmrnL<; for adju<;tmcnl'5 proposed in rcvenue agents' reports which 

r('~dt r~om the examination of taxpavers' returns. The documents in 

hh ~enes are listed on page 86. 

PUblic Information Program 

"dThe Service conducts an active public information program to pro­ 'I t ' e curre nata t d on revenue operations ..and to unprove taxpayer underan~lOg of Federal tax laws. 

IIms -In k' 'th h S .. . f d . al ....' eepmg WI t e erV1CC S !'Towmg u<;c 0 e ucation ,,,rl[lfl[\ . ,.,. -

WllS pKturc.'\, a second documentary film, "The Inevitable Day," 

"It ~[oducc~ and distributed. Twenty-seven minutes long, the "Infilm01 ..~. Day' was designed as a gradual replacement for the earlier 

8 . tnce the Beginning of Time." 
NUMBER OF TAXPAYERS ASSISTED 

- 5,803,200

5,453,200 

1961 

1960 , .,. 

4,144,800 4,305,000 

Totals: 1961 10,357,500 

1960 10,212,700 

409,500 454,500 

Individual 

assistanCe 

Telephone Self·help 

assistance assistance

n,·pm'! on () perrtfion/( 11

D 'ng the four months of the 1%1 filing period, each film ,\ as 

~nITI~re than 1,000 times to an e~timated 25 million viewers-on 

h~"~:ion or before schools ,md Clther organizations, In addition, a 

1O~~;;c1 version of "S,inee the Beginning of Time" was extensively used 

noral theater rhalO" III sclccled areas. 

\ short documentary film of the Presidelll's historic visit to th 

..., ' 'onal Office which highlights the President's remarb to top Intcr­ 1,atl ' , ." . , n:ll Revenue l.)er\'lce offictah, was prrpared and dlstnbuted for employee 

\;l",wing anel appropriate public me, ~ries of spot announcemenl" on the audit program of the Service 

'~'cre also taped b~ the Commissioner for television. 

News releases arid inqllirifl·.-?\[ore than 150 technical and ,general 

news rdea,;;es were issued. ran~ng from reports on the Service's nationwide, gambling raids to dcvelopments nn the conversion to automatic 

data procCS'ling. :\ record number of inquiries from the pre~ and public, stimulated 

In part by tax legislation pr()po~ab berorc~ the· Congress, were answered 

luring the year. ther.-The Service published a 40-page illustrated booklet on our 

If-as.'C.....smcnt tax system, entitled "History of U.S. Taxes and the 

.InternaJ Revenue Service." 

Taxpayer Assistance Program 

rhe objective of the 1%1 program was to provide profC.5sionalqu'llity sen'icc to all taxpayer.; who nreded a<;si"tance. Accordingly, ill 

ha.<,i~ was placed on improving methods of assistance, providing 

mrrr,ascd opportunities for educalion of taxpayers, and publicizing
 

formation to laxpa~ers through news releases, documentary films,
 

dio, :md tdevision" In the school year 1960-61, o\"er 3 million stu­


bits, principally high '>chon!' wcrc enrolled in our "Teaching Taxes" 

~cs,

The decrease in the number of taxpa~ers reqniring individual and
 

If-hdp as"i<'lance indicates that our t'ducational :lnd publicity programs
 

~l~ ,continUing to bear fruit. The number of taxpayer.; de'Siring indi­

\ldn:J1 assistanr'e decreased bv appr()ximatc1~ 45,000 from 1960. Assist­


U'c hy our :;c1f-help method (an employee helping two to eight tax-


N al <t tirnt~ by going from one to another resolving problems as
 

I: fills out his own return) was provided for i. J milIion taxpayers,
 

I-rrease qf -1 percent from 1960.
 

\lth"Il D h th' . f I '11" eli'd I
 ,., ln' was an mcrt'a~e 0 ncar v one mt lOn m VI ua
 

unts Died in 1%1 o\er the preccdinu fiscal" Ycar, the number of tax-


Vcr;; <:.J> k·· ,.., -" P mg as.SL<;tance remained faidv eonstant-lO,4 million during 
12 ~lnrn/(ll Rr'pOl'f 

the 1961 filing period compared with 10.2 million in IQ60. About.56 

percent of the total regue'its (in 1961) were received by telephone. 

rn re«'nt veal'S increasing cmpha"L<; bas been placed on the use of 

rhe telephone 10 aRsi"t ta.xpa\ ers because it reg uire::. Ie'" time on the part 

of both the taxpayer and Service personnel. Howc\·er. a "urvey can. 

durted during the last filing period showed that there is rOOm for 

improvement in the quality of assistance rendered to taxpayers. As;\ 

re-sult, a comprehensive study is underway for the purpose of developin~

a revitalized program of taxpayer a<o,.sistanrt>. The prime objective i~

to inc;ure that every taxpayer who seeks tax assi:--tance (rom the Service 

is given a prompt. clear, and rompletc answer to his question or problem 

where it lies within the province of the Service. 

Tax Return Forms Program 

In keeping with its continuous effort to simplify and improve tax 

return forms, the Service made a study of sug~c.sti()ns for tax forms 

revision received from Sen.·ice employees. prartitioners, and taxpayer"!;. 

A number of the cham~es made were attributable to these sugg~tions

and to the anticipated requirements for conversion to automatic data 

proces~ing.

Rei'irion of tn\: formJ.-Approximatel) 250 forms, instructions, and 

documents were revi~ed or reviewed prior to reprintin~ during the year. 

Some of the more c;ignificant chall~es made in the major forms are 

de.<icribed on page 86. 

Nert' tax forms iuued.-Several new forms were issued during the 

year a~ part of a continuing effort b\ the Service to improve procedure~.

The more important are listed on page 87. 

DiJ/ribufion O/lfl\' forms.-A.gain this year alt major ta-x forms were 

available in district and subordinate offices by December 1. For the 

fltst time, many of the lare;er banks and post 'offices also received supplies b) this date. Also for the fim time, many kinds of tax form~ were 

ordered packed in standard size raTton<;. This led to more rapid 

assembly of orders for van.ing quantities of forms hecause encb cart('11 

accommodated a uniform number. 

All bulk <;hipments of tax form packages from the Government Printing Oflice to the Midwest and Western service centers were made by 

trailer-on-flat-car (piggy-back) service. The average delivery time. to 

O,g-den. "Utah. was four cla\'<i and to Kansas Cit\', three days-a sa\'m.~

of three and two day's re.<;pectively over the previous method of shipment: 

A<; a l"l'<;ult, the sen.'ice centers couJd maintain their mailing <;chedu~e~ •	 with no c;lowdown<; due to delayed delivery of shipments. Quantit1e~

and cost of tax forms printed are shown in table 28, page 151. 

HepO'·t on	 ()/u:ratio?ls 13 

Regulations	 Program 

I _Enactment of the DraIer<; Resen.'e Adjllstml'nt Act of 1960 Item. 

'P.J... 86-459) required the issuance during the fiscal year of temporan. 

. ns to infoml taxpayers as to how, when, and where to make 

a\lIaUO •	 . h d f . . 

O' _I' I'ons rclalin~ to alternative met 0 S 0 computing and paYll1g the t' cc I - , 

•• n­ pemlittcd b, the Act. Thc<ie regulations were published tho: t.lX ,,:. . . I' a few monl!t$ of the enactmenl of the law. 

"'1~~;1~ following- major regulation under the J954 Code wac; completed. 

rinlting the total to seven: 

~1I5(dJ:meous Stamp Tax Regulatiom (T.D. 6530) to supersede all or part 

or Regulations 9. 22. 31, 32. 3-l, 36, 59. 66, 73, and 85 

ree major tax regulations that had been issued on a piecemeal 

hasis were publi'>hed in one document: 

Income Ta.'!: Re~ulalions (T.D. 6500)
 

RruulalJons on Prorrdure and Administration (T.D. 6498)
 

Employment Tax Re~ulatioDs (T D. 65 I 6)
 

In all, 74 Treasury Decisions, 6 Executive Orden;, and 59 notices 

,£ prnp<)~cd rulcmaking, relating to tax matters other than alcohol and 

hat'co ta.xes, were published. The~e arc more than were publio.;hed 

In anv fiscal year since the enactment of the 1954 Code. 

n' addition to the temporary and the new and republished regulations noted abm'c, some of the more important regulations arc described 

on pages 87 and 88. 

5C\'entccn public hearings on the provision:: of proposed regulations 

Wefe held in accordance with the provisions of Ihe Administrative Protitre Act. Approximately 600 taxpayers or their representatives 

..niripatcd in these hearings. 

'Itt: study of a proposal to issue official regulations in looseleaf form, 

W1ti(;ll had been made over an cxtended period 0f time, culminated in its 

. Pfll\'al during this fiscal year. The ba<;ic material for a large part of 

hc. I~tt'ma1 Revenue Looseleaf Regulations Sy"tem was distributed. 

/1115 ~rsttm repre.<ients a major administrative accomplishment because 

hrnakC\ ~vailable, [or Ihe first time, to Intcrnal Re\(~nue emplovees and 

1". publtc, official up-to-date internal revenue regulations in a conI('nt ronn. It provides a more effective rderence tool and should 

I~ in the. usen. being better informed about the regulations currently 'J! en. 

Il/~~:'Ol and T~b~cro .Tau.f.-~ regulations is..sued under the .FedhnholAdmllllstratlon Act (2/ CFR, Part<; 1-8) ""ere republished 

rp I; Federal Re~ister on December 29. 1960, These regulations inorate all amendments published bv Treasury DecL<;jons prior to tl'mh 1	 " - er, 1960, and reflect certain changes made in Chapter 51 of 
14 Arl1lunl Ref/m't 

the Internal Revenue Code of 1954- b~ Section 20 L of the Exci~

Technical Changes Act of 1958. 

In the tobacco tax area, regulatory chang-es were directed toward 

further modernization of the system for collecting tobacco taxes, sima 

plification of procedures, and reduction in the supen i"ion of the industry. 

A minimum of changes were made in the 19 regulations coverin~

the alcohol tax provisions of the Code due to the massive regulation~

program in this area which was begun in I C)S9 and completed in 1960 

to implement Public Law 85-859. 

One new regulation was issued, nine were reissued, and seven wcr 

amended (see p. 89) . 

Of the cleven Treasury Decisions in 1961, four were of major ~ignificance. Treasury Decision 6502 provided for the exclusion of amState or local taxes imposed on cig-an; as a commodity in detenninjn~

the retail price of large cigars for Federal tax purposes. In order to 

implement the provisions of the Internal Revenue Code, as amended h\ 

Public Law 86-478 (effective July 1, 1960), and to make conforminl! 

and clarifying changes, the Kational Firearms Act regulations (26 CFR, 

Part 179) 'were amended by Treasury Decision 6557. Inasmuch a.'I 

the regulations had previouslv been amended by Treasury Decision 6361. 

publication No. 232, which contained a reprint of the regulations undcr 

the National Firearms Act, was revised in Ma y 1961. to include in one 

document the basic regulations and the amendments made thereto. 

Treasury Decisions 6551 and 6563 provided for a return ~stem for 

the payment of tax in Puerto Rico on liquors and articles withdrawn 

from insular bond for shipment to the Unjted States, and on tobacco 

products of Puerto Rican manufacture r;hipped to this country. The 

Puerto Rican return system is comparable to the return system for the 

payment of tax on distilled spirits, wines, beer, and tobacco products in 

the United States. 

Notices of proposed rulemaking were published on December 28. 

1960, regarding the production on brewery premir;es of a beer canrentrate, the reconstitution of beer from the concentrate, and the exportation of the concentrate without payment of tax. Pursuant thcr~tn.

a public hearing was held on March 21-22, 1961. This hearing, whICh 

was continued to September 6, 1961, and subsequently rescheduled tn 

October 5, 1961, in response to industry request,;, was al<;o ..oneemrd 

with the malt beverage class and type provisions of 27 CFR, Part 7 

(Labeling and Advertising of Malt Beverages). 

A public hearing was also held to consider amendment of the stand­

•	 ard of fill provisions of 27 CFR, Part 5 (Labeling and Ad\'crtising of 

Distilled Spirits) as the result of an industry request for authority to usc 

additional bottle sizes for the packaging of liquors. 

Report on 0 peratio71.~ 15

Tax Rulings	 and Determination Letters 

f1aol-Rulings and dl'tcnnination letters are issued to individuals 

anizations upon \Hitten request, whenever appropriate in the 

nc1 or. g d .,. I . f 

cerest of sound tax a mlmst~atlOn, as to t lel~ status or tax purposes 

d as to the tax effects of thcIr acts or transactlOns, both contemplated :d t'omp]clcd, prior to their filing of returns or reports as required by 

he r('\'cnllc laws.

R,qllests for tax ruli71gs.-During the year, 36,905 requests from 

~ra~ef); for rulings and requesLs from field offices of the Service for 

hnil~al ad\·ice were processed. These included 33,852 reque!\ts from 

.';paycrs or their representati\'es and 3,053 from field offices. At the 

It",. of the year, 8,894 requests for rulings and technical advice were on 

h;md. 

In addition, 12,625 formal and informal technical conferences and 

,"n~ultations were held with taxpa)'cTS or their representatives. 

\n :mal>'Sis of the rulings and tccluucal advice processed, by subject 

m.lw'r. follows: 

Requests (or tax rulings and technical advice processed 

Subject Total I Taxpayers'

requ..,ts 

~~. 005 ! 33.852 

28.390 27,436

919 782 

702 509 

3,894 2.844 

2,371 1,786

._----_._--_..._--------_. _._- 629 495

Reid 

requests 

3.053 

954 

137 

193 

1,050 

585 

134 

IfrminatlO7£ letters.-Determination letters arc issued by district 

IfTj, C'> on cmployee benefit plans and exempt organization qualifications 

....·~l'n the answer can be based upon clearly established rulings and regutl~ns. Inquiries invoh'ing new or complex issues are referred to the 

,lllonal Office for consideration. 

DUring the fiscal year 1961, district offices issued J0,789 letters of 

!('trnnination pertaining to initial qualifications and termination of 

mploYec benefit plans (Le., pension trust plans, etc.). Of the 37 appli­

~Ions. appealed and considered by the National Office, 8 decisions reh ted tn favor of the taxpayer, 10 partiall~ in his favor, and 19 against r l:txpayer. 

~~·tl;~ination letters issued with respeet to the exemption of an or­

.;~~tlnn from Federal inco~e taxes totaled 5,142 during 1961, with 

. Or 93 percent, representIng approvals. 
------------

16 Annual Report 

The following table provides additional details as to the nature
 

the determinations and the type of benefit plans involved: of
 

Determination letters issued on employee ~ene6[ plans and exempt organizati0lla 

Employee benefit plans 

Exempt Item organ~ Profit· Pension or 'Stock bonus lions shallng annuity

---...... loilial qualifications: Approved._.~ __ .. . . ••• ._ 4,775 5,222 14 4,~

Employees p2ltlcipatlog uoder plan 291,486 648.849 39.156 Tolel number employed. •• _ ------ ~~~ .... 891. 396 2, 182,499 61,593 -----.-.......
 Dlsapproved . . __ . _ 65 70 35l 

Termlnalions•. •• ••_. __ • ••, • • • 283 358 

Closed wlthoul _...-..(.... issllance of determination leller__ • • _ 212 224 ,431 

Closing agreements.-Closing agreement cases involving- the tax statua 

of prospective transactions are considered by the Tax Rulings Division 

of the National Office. Two cases which were on hand at the beginning 

of the year were closed. Of the 19 cases received and still pending, 15 

were received during the last three months of the year. 

Publication of rulings, procedures, and announcements.-The number 

of rulings and procedures published in the Internal Revenue Bulletin 

during 1961 decreased by 31 percent as shown in the following table: 

Revenue rulings and procedures published 

Tnhil 

Type 1961 

318 

1960 

_ 

Income IllJl. ••. •• ••_•. __ . __ .. _. . . ._.--133 
 

Administrative and mlscellaneous_ •• . • • .__________ 14 12
 

Jlrearms ~1~~~1~~;;~~~E(~~~~J~~~~I~~~~~~l::~~~~~f~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ •. __ . ._______ ] 1 I I~

The reduction in the number of revenue rulings published in 1961 

compared with 1960 occurred principally in the excise tax and income 

tax areas. The lapse of time since the enactment of the Internal 

Revenue Code of 1954 and the issuance of Income Tax Regulations 

caused the reduction in the number of income tax rulings published. 

The same is true in the excise tax area; in addition, a special effort was 

made in past years to select and publish many old excise tax rulings 

which had never been published and which were considered to be of 

guidance to the public and Service personnel. This project was sub­ • 

stantially completed in 1960. 

Report on 01Jeratiom 17 

The most significant Revenue Rulings and Procedures published. 

during the year are .show~ on page 89. 

In addition to notlces WIth respect to proposed regulations, 106 anuncements of general interest were published in the Internal Revenue 

nO . Bulletin. The more unp~rtant anno~~cem~nts are shown on page 91. 

As an aid to the location of admmlstratlve and procedural matters 

contained in Revenue Rulings, Revenue Procedures, Statements of Procedural Rules, Treasury Department Orders, Delegation Orders, etc., 

an index to all such documents issued since July 1952 was published in 

lI~tema/ Revenue Bulletin 1961-7 dated February 13, 1961. 

Eighty-eight Technical Information Releases were ismed compared 

to 7I in 1960. Nineteen announced the position of the Internal 

Revenue Service as a result of court decisions having an important effect 

on taX administration. See page 92 for the more important releases. 

... \ ­
NUMBER OF RETURNS FILED
 

fiscal years 1961 and 1960
 

(Millions)
 

receipt and processing 

of tax returns and 

related documents 

umber of Relurns Filed 

In the 1961 fisc<1.l year, 95.8 million tax returns of all classes were 

rCl.ci\cd by the Internal Revenue Service. This was 1.4 million, or 1.5 

m~nl. more than the number received in the preceding year. 

l)'l:r half of the total increase occurred among individual income tax 

turns where the combined total of Forms 1040, 1040W, and 1040 

'WI'J .1n increase of 0.8 million, or 1.3 percent over last year. 

fldl\idual declarations of estimated tax numbered 6.3 million repret~ng a slight decrease of 0.4 percent from the preceding year. 

I he number of corporation income tax returns increased 10 percent, 

about 1.1 million in fiscal year 1960 to about 1.2 million in fiscal 

1961. 

E1llplo)'ment lax returns totaled 20.7 million in 1961 or 2.1 percent 

Or~ thall in the preceding year. Over half of the increase was among 

11~1r,~cn;' returns for household employees. 

l~x(\sC tax returns numbered over 3.9 million, an increase of 1.9 

rcent Irom the preceding year. 

19~comparison of the number of returns filed in fiscal years 1961 and 

follows: 

19 

1961 

1960 

20.7 20.2 

Employment 

Totals: 1961-95.8 million 

1960-94.4 million 

Individual Declarations of Partnership Corporation

and fiduciary I estimated tax 

• 
• 

• 

20 Annual., He7JOrt

N umber of returns filed, by principal type o( return 

[figures In thousands. For details, see table 6, p. 1281 

Type or return 1961 

Grand lolal 

Int(lme tax returns, tot., 

IndiVIdual and liduriary, total. ­

Individual-citilO11S and resident aliens, lolaI 

forms 1040 and 1040W •• ••• ._ ••_.__•• • 41.4~

form 1040A •. ._. •••• .• ._ •• •. 18,803 

All other individual and fiduciary. -__••• ._. --.-••••---•••..-_••_. 778 

Declarations 01 estimated tal, 10Ial.__. __ ••• ••••._ •• •••_. ••• _ 

Individual. __ ._. •...__ • ._ ••••_. .•_•• ,_,, ._••_._._._ Corporation. ._•• ._ ••.__••_. .• ...•__._.•_....... .•
 

Partnership_. _._. . ._._ •••• •• __ •• _•.. __ •..- __ ._._._.• _._ •• __ ._. 1,003 Corporation .. . ._. __ ._•• .•__• ._. . •__. __•• .___ 1,179
 Oth~r. ._._ -- .....__ .•••• _. •• _••,_ -_ ••• •••• • __.___ SOl
 

Employment tax relurn~ totaL • ._ •••.__ ._ ••. __ . __ •__• . .__ 20,660 

Employers' returns, Form 941._. ._. ._. _
 Emrloyers' relurns, Form 941 (household eroployees)_ •• __ ._ ••••• • _
 E~ployers' returns, Form 943 (agricul1ural employees)
 RaIlroad retirement. Forms CT-I, CT-2 •••__ _ Unemplovm""l insurance. form 940 -••----.--. --- ---- . ._1 1,244 I 

Eslate t81 • __ .______ •__ ._.... __ . __ • • __ •• . ._ •• •__ Gift t8l • ••• _,_.,_•• _ ••••__ .,. __ ._•• • •••••• • • 

ucise lax"". lolaI _ .--.-- - --'" - --·--·_-·--···--·---1 

Occ"patlonal tales _. __ _
 Form 720 (retailers. manufacturers. etc.) • _. _
 Alcohol __ ___-. • _.___ _ . __ ••_. • •••_. __•• 1
 

robacco __ •
 Other _ 

Information Returns 

Over 330 million infom1ation returns were received. Slightly und 

two-thirds of these were Fonns \\'_2 (employers' statements of wag 

paid and tax withheld) including copies filed by employers, and byemployees as attachments to their income tax returns. Forms 1099 (in' 

fonnation returns on payments of dividends, interest, and various oth 

items) accounted for one-third of the infonnation returns recei\' 

The remainder included nearly 6 miHion Forms 1087 (Ownership eel' 

tificates--Di\'idends on Stock). 

Service Center Functions 

During fiscal year 1961, the area service centers processed almost 60. 

million individual income tax returns, Forms 1040, 1040W, and 1~'

Of these, 46.6 million were 1960 returns filed during the 1961 

period and 13.4 million were 1959 returns filed during the 1960 

period but proce&'led after July 1 of that year. The volume proc 

was almost 12.7 million, or 27 percent above the preceding year, 

21 Report on 0 peratirmR 

dditio • 47 million individual estimated ta.\: declarations were 

n 111 :cd. AccounL'i r.ecei\·ablc were established for appropriate in­

. I 1income and estimated tax returns.
 \'\1 u:t . f d 'I' d d I' t) 'og the year ser.ICC c('ntc~ per onne mal mg; an e mquency 

110oPeration'> on employers' rcturn..,. Form ~4-1. for all quarters, 

king Lh.is as the fir.;t vear during \\ hich all district~ received full benerIhcse scrvices. From Jan 1 through June 30, 1961. ~t.:rvice centers received 54.2 

uan • n individual incume ta.x rcturn~ for processing. or 89.4 percent of 

total filed. This was an increase of approximately 2.1 million over 

me period last vcar. The increase wa., largely due to scheduling 

ditional returns for shipment to the centers by districts served. 

J)\1rin~ the period January -Jline 1961, the Northeast Service Center 

:--<;cci individual income lax relurns filed for the tax year 1960 on 

,\. Itigb-speed magnetic. tape computcrs. This advanced electronic 

m made it possible to submit the rdund data to the Chicago ReI Disbursing Office: on magnetic tape. The Service plans to utilize 

.•ch'nnred equipment in the 1\fidwcst and Western Sen'ice Centers 

inning January 1, 1962. 

funds Covering Excessive Prepayments 

In the 6-montb period ended June 30, 1961, nearly 36 million refunds 

rf' ~rhcdulcd on individual income tax returns flied for the 1960 tax 

r.	 This was an increase of 1.4 million or 4- percent over the same 

d laM year_ The average refund scheduled for tax year 1960 was 

12'hompared with $114 forta.x year 1959. 

11\1~ Scnice expedited its refunding program in accordance with 

linislration poliC)' lo such an exlent that the number scheduled 

h ~1arch 1961 was 21 percent above the same period in 1960, By 

1d of April, refunds scheduled in 1961 were 11 percent above 1960. 

. numher and amount of credits allowed on tax vear 1960 returns 

mcrC-.l.l((:d I!)a~d 22 percent respectively, ' 

fulloWlllg table show!> the nllmber and amount of refunds and 

an~l 1~r.: amount of interc.<;t paid a-- a result of excessiVC' prepayf IndiVidual income tax on returns filed for the tax "ears 1955 

h HlfiO (usually received and processed bv J unt: 30 of the followr}::	 . 
-- -

22 Ann1l0l Rep01't 

Refunds and credits resulting from excessive prepayments 

utO 

. 

.\ hr dcn1an . _ 

url1~

.

U1pr'1l' 

l1le 

Revised figures to Deeember 31 I 

'

of individual ineo 

Rerund~

T~x year I 

Number Principal Interest (thou~ands) (thousand (thousand dollars) dollars) 

1960 '. _•. _ _.__ • ___ .....__••• -~ 35,911 4,462,804 522 1959_ .. ,•••••••• _•••••__ •••••••••• _._. ___ 35,830 4,194.9J~ 4,970 1958 .. __.,........__ .....•• _ • 35,154 3,978,226 3,933 1957 .. ____.. ____________ . ____ ...••• _. 35,155 • 3,726,000 tJ,I92 1956 ., _ •• __ •••___........._ •• _.•• 34,096 3,323,779 3,936 1955... _ . .. _ _ _ 33,274 3,074,128 3,589 

I figures ore prelominary and reneel refunds or credits 10 June 30, 1961. 

appea, 'n next year's repo,l. Estimated. 

Carryback Allowances 

As a result of the temporary decline in business activity during calendar year 1960, there was a substantial increa~c in the filing of applications for tentative adjLL~tmenls of prior yean;' income taxes to give effect 

to operating los.s carrvbacks. This increase consisted of filings by bo 

individual and corporate taxpayers. 

Compared with 1960, the number of cases handJed rose 8 percent 

and the dollar allowance increased 20 percent. 

Due to the appreciable increase in filings during the latter part of this 

fiscal year, the number of applications pending was 87 percent greater 

than the number pending at the end of the preceding year. 

A 2-year comparison of the carryback applications received and ad· 

justed follows: 

Receipt and disposal of tentative carryback applications 

Number Amount (thousand dollars) 

Status P.djusled 

1---­

Claimed 

1961 1960 

1961 1960 1961 

---- 1--,--,--,--, 

Pending July I __ ••. 3,493 8,284 29,056 68,6t9 . • --, •. ­ Applicafions re<:eived . . __ ••• 0,676 57.709 654,279 492,501 ..... __ Applicftl,ons adjusted, total .. 67,639 62,500 629,456 532,064 _ Allowed . • . __ .• n.a. n.l!. D,sallowed _ n.a. n.~. -:.:.::: ::::::---- 6~l:m 12/

Pendlna June 30. _.. _ 6,530 3,493 53,880 2~,056 ...._...-­

n.I.-Not wailable. 

Report Oil 0 pfratioll.~ 2~

malic Data Processing . f 'II I . aUc machine proces<;mg 0 tax returns WI p av a major -he atltom .' h ·s· A . d ' 1 future operatlom ot t e . ervlce. utomatlc ata proce&~

,k m~~-iS the onh practical way the Service can effectively meet 

d" being placed upon it by an incrca."cd workload: 6 million ., . 1960 'd 113 '11' b "l.d in 1930: 94 millIOn 111 ; an estimate ml Ion y II C '. • Pre-cnt-type t'qwpment and systems would be madequate to 

this growth. The Sen:ice mu"t utilize ~jgh-<;peed electronic 

nt to continue to achle\e returns-proce«.<;mg and revenue en­

.' 

r:mrnt nbtectlves.. . '\lIh,tantial progress was made In thc program for automatIc data 

. ~,:,~ing during fiscal year 1961 .. Thi~ program,. whic~ will be in 

lkd over a period of several years, IS designed to bnng major advances 

the:- procc.·ising and enforcement activities of the Internal Revenue 

in: through the utilization of a network of high-speed electronic 

rnplltt:rs, Some of the significant highli.ghts of the past year were­

'l1'ation of the new ADP Di"ision, 

5dcction and training of systems analysts and programmen;, 

S}'!'tr.m!' design for busine..'\S returns processing, 

Planning for personnel redeployment, 

f:..<;tabli~hment of the pilot scn'ice center in Atlanta, Ga., and 

Initiation of construction of the National Computer Center at 

Martinsburg, W. Va. 

In nrdcr to set the stage for carryinl:?; out thr program responsibilities 

r ,1l11omatic. data processing, it was necessary to select and train over 

100 SCf\·ice employees to become digital computer systcm-; analysts and 

rogralllmer.i. These employees, formerly internal revenue agents, 

011(' officers, tax examiners, etc., were selected on the ba<;is of a 

rinnwide competiLion and given 10 to 21 weeks of intensive training 

n ~:'!~:m-; analy'Sis and programming. All are now actively engaged in 

19l1lng the. new system required for processing returns.
 

I," recognition of the shift of work from district offices to the new
 

Irlnal '
 -. service centers, plans were developed for the redeployment of 

l\lrua ncrsonneJ whose work will be performed in the new service 

!\egotiations were undertaken with the CiviJ Service Commis10, to ~~cure authorities needed to minimize personnel placement prob­

';~I during lhe transition to automatic data processing. 

nc ;~ h .w, system will be tested in the pilot service center which was 

IhCI~tr,d In \tlanta, Georgia .. The ~enter ~j~l ~er~ice district o~ces lIh r: ale~. of Alabama, Georgta, Flonda, ML>;.SIS<;lppl, North Carolma, 

aroltna, and Tennessee. It wa~ staffed with key administrative 

I and began the bUIld-up of its returns processing work force. 
24 Arvnual Report 

Effective January 1962, business-type returns will be processed and • 

Jam~ary 1963, this service center will begin the processing of individ 

Income tax returns. 

The National Computer Center at Martinsburg, W. Va., du fI 

completion in the fall of 1961 will be the "heart" of the ADP sy: t 

When the system is fully implemented nationwide, the Center will rn

tain, on magnetic tape, a master file of some 75 million tax 

f. 

With.

preceding year. 

accoun:1lindividual and business taxpayers. Also for the first time, the Servil 

will be able to make a systematic check on the failure of individuals 

business entities to file tax returns. Each taxpayer's account will c0ntain information distinguishing him from all other taxpayers and indicating the cla..'ses of tax for which he is liable. The file will show the 

current status of his account-including tax liability, tax delinquenc}' 

payment and refund information, prior years audit results and related 

data. In addition, the system will make it possible to assist in c1assifica. 

tion of returns for audit purposes, and will produce management, oper. 

ating, and statistical information. 

• 

• 

enforcement
 

activities
 

General 

Approximately 97 percent of all revenue collected in fiscal year 1961 

wa.~ collected through voluntary compliance with tax laws. The reason 

ror compliance may vary between individuals, but, in general, this 

client record indicat~ public confidence in our tax system. The 

I'\"ice devotes a substantial amount of manpower to enforcement 

h"itics in order to sustain this confidence and to encourage ever 

'eater voluntary compliance. The.<;e enforcement activities include 

,rreeting errors in tax liability on returns voluntarily filed, identiryin~ and collecting taxes and penalties, and, where warranted, proseuting taxpayers who ignore or seek to evade their just tax responsibilities. 

Mathematical Verification :\1

More than 59.5 million income ta:" returns of individuals filed on
 

nns 1040, l040W, and 1040A were mathematically verified during
 

the year, an increase of 9.3 million, or 19 percent over the preceding
 

r. The increase is attributable to service center processing, where
 

thematical verification of anyone tax year's returns overlaps two
 

aI years. The increase in fiscal year 1961 resulted from a large
 

hcrluled carryover of 1959 tax year returns and an acceleration in the
 

T uled processing of 1960 tax year returns. ..,
 

he number of error cases disclosed by mathematIcal venficatton
 

IIlcrea....ed to 2,5 million, an increase of 24 percent over the preceding
 

.The number with a tax increase rose 20 percent, while the num­


a tax decrease rose 32 percent. The tax increases averaged
 

.whlle the lax decrea'>CS averaged $70. The aggregate amount of
 

Ulnrreases Was $132 million, compared with $112 million in 1960,
 

e tax decreases totaled $66 million compared with $49 million in
 

' 

25 

1_'" 
Type of return 

Total Forms 1040 and 1040W Form 1040A 

26 Annual Report 

The results of mathematical verification of individual income tax 

returns during the last 2 years are shown in the following table: 

Individual income tax returns mathematically verified 

Item 

1961 

Number of returns verified__ _____ thousands__ 

Number of returns on which changes were made 

thousands__ 

Returns with increase: 

Number_ thousands__ 

Amount thousand dollars__ 

Returns with decrease: 

Number thousands__ 

Amount thousand dollars__ 

Examination Program 

Cenerat—Increased emphasis was placed on the role of the Examination Program in strengthening our self-assevsment system. A major 

research program was developed which, over a period of several years, 

will provide the Service with significant information as to the types of 

returns most likely to contain errors or omissions. A special study conducted during the past year, in accordance with section 301 of Public 

Law 86-564, revealed widespread abuses in the reporting of travel and 

entertainment expenses as deductions. As a consequence, the enforcement efforts of the Service have been intensified in this area. 

A nationwide revenue agent evaluation system was put into operation, 

providing for a uniform evaluation of all revenue agents and emphasizing the importance of the group supervisor's awareness of performance 

evaluation as an integral part of his daily activities. 

Consistent with the objectives of the Service to obtain the greatest 

possible number of taxpayer agreements to tax recommendations without sacrificing quality or the integrity of these recommendations, and 

to dispose of tax differences at the lowest level, new informal conference procedures were implemented. Among these new procedures is 

one which gives the taxpayer the option of requesting a conference 

with an agent who functions independently of the group supervisor. 

In addition, a full-time conference coordinator has been assigned in 

each district. 

Classification and selection of returns for examination.—Classification 

and selection of returns for examination are important phases of enforcement activity. Since it is not practicable to classify all returns 

filed, each district plans a separate classification program, formulating 

criteria used for reviewing and segregating from the total returns filed 

Report on Operations 27 

those which experience indicates would be most in need of examination 

as a result of taxpayer noncompliance. A sufficient number of such 

returns is selected to insure appropriate audit coverage. 

Income, estate, and gift tax returns filed annually total about 71 

million. Returns in these categories classified by the district audit 

divisions totaled 24.4 million, of which 3.4 million were selected for 

examination. This is only one source of audit workload; therefore, it 

is necessary to carefully compute the estimated audit workload from all 

other sources in developing this program which is so vital to the sound 

operation of our tax system. 

Concurrent with a long-range objective of greater efficiency throughout the Service, studies were continued for the purpose of employing 

modern techniques of automatic data processing to the fullest extent 

possible. These studies cover such matters as the identification of 

returns to be classified, and will provide a better basis for selecting 

returns for examination. 

Number of returns examined.—Almost 3.5 million returns were examined during 1961, of which nearly 3.3 million were income, estate, 

or gift. The sharp increase of 486,000 returns over the preceding fiscal 

year is attributable primarily to the use of improved office audit techniques. The installation of electronic report-writing equipment is expected to further increase office audit production. These machines type 

certain taxpayer information, then compute and automatically print the 

tax as well as a preselected standard explanatory paragraph. 

Examining officers are encouraged to study carefully the returns assigned before undertaking an examination, and to accept those returns 

which we are unable to examine with available manpower. In addition to the returns examined, the district audit divisions closed without 

examination 703,000 returns. 

The following table shows the number of returns examined : 

Number of tax returns examined 

[Figures in thousands] 

Type of return 

Total Field audit Office audit 

1961 1960 1961 1960 1961 1960 

Grand total 3,486 3,000 917 911 2,569 2,089 

Income tax, total 3,242 2, 736 703 682 2, 539 2,054 

Corporation 163 165 161 163 2 2 

Individual and fiduciary 3,079 2, 571 542 519 2,537 2,052 

Estate and gift tax 

Excise and employment tax , 

32 

212 

27 

236 

29 

185 

25 

203 

3 

28 

2 

33 

I Excludes examinations resulting in no tax c ange where such examination was made from the taxpayer's copies of 

returns in the course of an examination covering both income and excise and/or employment taxes. 

59,495 

2,501 

1, 570 

131, 981 

931 

65, 598 

37,254 

1,361 

944 

81,112 

417 

26,745 

13,304 

762 

436 

35, 174 

325 

25,119 

12,902 

656 

36 

30,953

9 

287 

21,819 
28 Annual Report Report on Operations 29 

Additional tax resulting from examination.—During 1961 additional 

tax, penalties, and interest assessed on examined returns amounted to 

$1.8 billion, an increase of $972,000 over last year. 

A decrease of $85.3 million in additional assessments of corporation 

income taxes was more than offset by an increase of $81.5 million of 

individual and fiduciary income taxes and smaller increases of estate and 

gift taxes, and employment taxes of $2.5 million and $2.4 million, respectively. Additional assessments of excise taxes decreased $231,000. 

For details on additional taxes, penalties, and interest assessed, see the 

table on page 44. 

Claims for refund.—Of the 302,690 claims closed by the district audit 

divisions, 125,639 were closed on examination and 177,051 closed without examination. Compared with fiscal year 1960, this represents a 

decrease of 54,925 claims. 

Although the individual income tax area was responsible for most of 

the decrease in number of claims closed, the corporation and excise tax 

areas accounted for most of the decrease in the dollar amount claimed. 

In the excise tax area, the amount claimed dropped from $191.6 million 

in 1960 to $69.4 million in 1961. A $70 million claim closed in 1960 

was primarily responsible for this decrease in the excise tax area. 

Details on claims closed are given in the following table: 

Claims for refund closed by district audit divisions 

Class of tax 

Number 

Amount (thousand dollars) 

Claimed by taxpayer Allowed Disallowed 

1961 1960 1961 1960 1961 1960 1961 1960 

Total 302,690 357,615 473,780 677,022 159,205 161, 396 314, 575 515,625 

Individual income tax 264, 287 316,005 99,736 102,396 65, 330 65, 324 3A 406 37,071 

Corporation income tax 24,169 24, 289 288,133 357,123 79, 377 79, 473 208, 755 277,650 

Estate tax 1,529 1, 425 13,895 23, 260 6, 95 7, 174 7,250 16, 086 

Gift tax 277 246 864 849 347 382 517 467 

Excise tax 7,890 10, 193 69.350 191, 603 6,208 7, 804 63, 142 163,799 

Employment tax 4, 538 5, 457 1,802 1, 791 1, 298 1.239 505 552 

Overassessments of tax exclusive of claims for refund.—In addition 

to the amounts allowed on claims for refund shown in the preceding 

table, adjustments due to examination of taxpayers' returns resulted in 

the recommendation of $116 million in overassessments during 1961. 

All tax areas, except corporation, show an increase in overassessment 

recommendations over 1960. The following table shows the amounts 

of overassessments of tax for 1961 and 1960: 
13,021 

10,939 

Agreed Unagreed 

overassessment 

Agreed Defaulted Agreed Dismissed 

or defaulted on 

Report on Operations 31 

APPEALS 

(income, profits, estate, and gift taxes) 

fiscal years 1961 and 1960 

Overassessments of tax exclusive of claims for refund 

Type of tax 

Amount (thousand dollars) 

1961 1960 

115,719 116,536 

Total 

Individual and fiduciary 

Corporation 

34, 372 

73,227 

6,129 

31,249 

78, 841 

5, 445 

Estate 707 369 

Gift 1,030 418 

Excise 254 214 

Employment 

Appeals 

Income, profits, estate, and gift tax cases.—The total number of protested income, profits, estate, and gift tax cases received in pre-90-day 

status by the regional appellate divisions was 7 percent under 1960 and 

lower than any year since 1956. The principal reason for the decline 

was the increased emphasis on informal conference in the district audit 

divisions. 

Disposals, though below 1960, exceeded receipts for the second consecutive year, resulting in the lowest combined pre-90-day and 90-day 

case inventory since September 1957. 

The number of petitions filed with the Tax Court of the United States 

was under 1960 and 1959. This, coupled with more docketed case disposals than in any previous year, resulted in a lower inventory of cases 

in docketed status than at any time since May 1958. 

The following tables reflect case receipts, disposals, and inventories 

during the last two fiscal years. Additional details relating to these 

cases, including dollar amounts involved and results obtained in cases 

processed, are shown in tables 15, 16, and 17, pages 142 through 144. 

Appellate Division processing of protested income, profits, estate, and gift tax 

cases prior to issuance of statutory notice of deficiency (pre-90-day cases) 

1961 

Totals: 1961 20,298 

1960 22,654 

5,614 5,511 

Number of cases 

Status 

1961 1960 

Pending in pre-90-day status July 1 

Net receipts from district directors during year 

Processed during year, tota l 

Agreed 

Unagreed overassessment and claim rejections 

Appellate Division statutory notices issued—transferred to 90-day status 

Pending In pre 90 day status June 30 

10, 564 

14,871 

13,298 

16,001 

1,039 

330 384 

a 

15, 724 18, 368 

10, 939 

729 

4, 056 

13, 021 

942 

4, 405 

9,711 10, 931 

I Change in reporting procedure on July 1, 1960, transferred 367 overassessment cases from pre-90-day status and 

associated them with related deficiency cases in 90-day and docketed status. 
32 Annual Report 

Appellate Division processing of protested income, profits, estate, and gift tax 

cases in which statutory notices of deficiency were outstanding (90-day cases) 

Number of cases 

1961 

Pending in 90-day status July 1 

Net receipts during year, total 

Statutory notices issued by Appellate Division 

Cases resulting from district directors' statutory notices 

Processed during year, total 

Agreed 

Defaulted. 

Petitioned to the Tax Court—transferred to docketed status_ 

Pending in 90-day status June 30 

I Difference from preceding table is caused by cases being combined or split for the purpose of issuing the statutory 

notice, cases in transit, etc. 

Number of cases 

11,489 

5,451 

6,983 6,821 

9,957 

I Difference from number shown as petitioned in preceding table is caused by excluding district direr on' statutory 

notices considered by Appellate in 90-day status, cases in transit, etc. 

Excise and employment taxes.—There was a nominal increase in 

the number of these cases received and a small decline in disposals. 

Disposals exceeded receipts for the second consecutive year. 

33 

Status 

Number 

1961 

895 

of cases 

1960 

1,037 

Pending July 1 1,384 1, 318 

Received during year 1,450 1,460 

Processed during year total 722 764 

Settled by agreement 728 696 

Closed without agreement 829 895 

Pending June 30 

Claims for relief from excess profits tax.—Further progress was made 

during the year in the disposition of claims for relief from the World 

War II excess profits tax (Sec. 722, Internal Revenue Code of 1939). 

The number of cases pending in the Tax Court was reduced from 20 

to 12; and no nondocketed cases were pending before the Excess Profits 

Tax CouncIl. For all practical purposes the Service program in t his 

important area has been completed. The results for the year were as 

follows: 

Claims for relief from excess profits tax pending in the Tax Court 

Amount 

claimed 

(thousand 

dollars) 

115, 850 

Pending July 1 

Received 

61 

Closed 

21,281 

94,63o 

Pending June 30 

Closing agreement cases.—Final 

closing agreement cases relating to 

completed transactions are considered by the Appellate Division. The 

table shown below reflects the activity in this area. (Rulings on proposed closing agreements involving prospective transactions are discussed 

on p. 16.) 

Appellate Division processing of final closing agreement cases 

1961 1960 

Received uly 1 

7 7 

Received during year 

_ 

32 32 

Processed during year 

34 ii. 

Pending June 30 

5 7 

608753 0 -61 -4 

Status 

1,268 1,330 

4,410 4,661 

3,883 4,324 

527 337 

4,467 4,723 

660 711 

987 1,159 

2,820 2,853 

1,211 1,268 

Appellate Division processing of income, profits, estate, and gift tax cases petitioned 

10 to the Tax Court (docketed cases) 

Status 

Pending in docketed status July 1 

Net receipts during year, total 

Petitions filed in response to— 

District directors' statutory notices 

Appellate Divisions' statutory notices f 

Cases reconsidered after trial 

Processed during year, total 

Agreed—stipulated 

Dismissed or defaulted 

Tried before the Tax Court on merits 

Pending in docketed status June 30 

5,614 5,511 

330 384 

1,039 926 

11,489 

11,748 

Report on Operations 

The following table reflects the results in this area: 

Appellate Division processing of protested excise and employment tax cases 

Status 

Number of 

cases 

20 

1 

9 

12 

Status 
U 

34 35 Annual Report 

Improvement in processing docketed cases.—New procedures were 

placed in effect by Rev. Proc. 60-18 early in fiscal year 1961 to improve regional appellate division and regional counsel office processing of cases docketed in the Tax Court of the United States. Basically, 

these procedures are designed to provide for prompt action and expeditious disposition of cases which may be settled; to enable regional counsel 

to stipulate undisputed facts, as required by the Court, in an orderly 

manner and make adequate preparations for trial of cases not settled; 

and to avoid the rush and delay occasioned by last-minute settlement 

negotiations and trial preparations in cases set on trial calendars. Progress has been made in achieving these objectives and, as taxpayers' representatives gain understanding and more fully recognize the material 

advantages to be derived from operating under the new procedures, 

further progress is expected. 

Overassessments Reported to Joint Committee 

A total of 723 cases involving overassessments of $372.6 million was 

reported to the Joint Committee on Internal Revenue Taxation in 

accordance with the provisions of section 6405 of the Internal Revenue 

Code of 1954 which required review by the Committee of all refunds 

and credits of income, war profits, excess profits, estate, or gift tax 

exceeding $100,000. These figures compare with 542 cases involving 

$328.8 million reported in the preceding year. 

Civil Litigation 

Litigation results.—The Supreme Court decided 10 tax cases, sustaining the Government's position in 8 cases. 

The circuit courts of appeals decided 261 tax cases (exclusive of 

bankruptcy, receivership, insolvency, compromise, and liquor cases). 

The Government's position was supported in 193 of these cases. 

Usually a taxpayer who has paid a disputed tax can, if he wishes, sue 

for refund in the Court of Claims or in a United States district court. 

The district courts decided 166 cases for the Government, 192 for the 

taxpayer, and 39 cases partly for the Government and partly for the 

taxpayer. The Court of Claims decided 17 cases for the Government, 

24 cases for the taxpayer, and 5 partly for each. 

There were at yearend 2,556 civil cases (principally suits for refund 

of taxes, other than those relating to alcohol, tobacco, and firearms taxes, 

but also including erroneous refunds, perpetuation of testimony, and 

damage actions) involving tax questions pending in district courts, and 

486 pending in the Court of Claims. 

Report on Operations 

For details of the cases in courts other than the Tax Court, see tables 

and 22 on page 146 and 147. For Supreme Court decisions in civil 

see pages 93 to 97. 

Statement on adverse Tax Court decisions.—There were published in 

Internal Revenue Bulletin acquiescences of the Commissioner in 64 

verse decisions of the Tax Court and nonacquiescences in 16 adverse 

decisions for the fiscal year ended June 30, 1961. 

linquency Investigations and Delinquent Returns 

The progress made in reducing delinquent accounts inventories in 

fiscal 1960 enabled most district offices to expand somewhat their programs in the returns compliance area. As a result, the number of 

investigations conducted in 1961 in cases in which preliminary information indicated that persons or firms had failed to file some type of return 

totaled 1.3 million, against 1 million in 1960, and 972,000 in 1959. 

The increased work in this area brought about a continued upward 

trend in the number of delinquent returns secured. District collection 

divisions secured 968,526 delinquent returns, an increase of 8 percent 

over the 1960 figure. The amount of tax, penalties, and interest on 

these returns was $159.2 million, a gain of 38 percent over 1960. 

These increases are significant when it is considered that 1960 itself was 

a year of increased activity in the returns compliance area. 

In addition, district audit divisions secured 95,000 delinquent returns 

in connection with tax examinations. This was 5,000 fewer returns 

than last year. However, additional tax, interest, and penalties on 

these returns rose from $37.9 million to $50.7 million, an increase of 

34 percent. 

Fraud Investigations 

The fraud investigation program received substantial impetus from 

various developments during the year. The number of all types of 

investigations completed by the special agents increased from 15,041 to 

16,543. The most significant increase is that of completed full-scale 

fraud investigations in which prosecution was recommended, from 

1,131 to 1,240. 

The practice of conducting nationwide coordinated raids against 

wagering tax violators was continued with three such raids in 1961. 

The action took place in 160 cities and resulted in 421 arrests and 

seizure of 36 automobiles, $270,000 in currency, and considerable 

gambling equipment. The result of this continuing emphasis on the 

initiation and development of cases against important wagering tax 

violators was an increase from 524 to 781 in the number of cases 

in which prosecution was recommended. 
36 Annual Report 

Of major import was the added emphasis given to the investigation 

of the tax affairs of major racketeers as the result of the Service's participation, starting last February, in the Department of Justice drive on organized crime. This participation necessitates top priority for investigation of the tax liability of the subjects of these drives. The Service 

has been singularly successful in the past in bringing to the bar of justice 

many of the country's most powerful and notorious racketeers for 

criminal violations of the tax laws. To provide for a maximum effort 

in the organized crime drive and also to maintain other enforcement 

programs, the authorized special agent strength was increased by 161. 

By the end of the fiscal year 122 of the additional agents were on the 

rolls and the balance of the additional positions were committed. The 

impact of the additional special agents will not be felt until late next 

year when their formal and on-the-job training will have been 

completed. 

A summary of investigations by special agents follows: 

Tax fraud investigations 

Type 

1961 

16,543 

1960 

15,041 

Grand total 

Unnumbered (preliminary) investigations, total 

Fraud 

Wagering 

Coin-operated gaming devices 

Miscellaneous 

Numbered (full-scale) Investigations, total 

Prosecution recommended, total 

Fraud 

Wagering - - 

Coin-operated gaming devices 

Miscellaneous 

Prosecution not recommended, total 

Fraud 

Wagering._ 

Coin-operated gaming devices 

Miscellaneous 

Investigations discontinued, total 

Fraud 

Wagering 

Coin-operated gaming devices 

12, 866 11,460 

10,839 

1,650 

245 

132 

9, 918 

1, 200 

271 

91 

3,677 3, 561 

2,0% 1, 817 

1,131 

524 

133 

29 

1,240 

781 

44 

31 

601 

476 

54 

61 

10 

710 

626 

31 

38 

15 

980 1,034 

996 

25 

13 

910 

55 

15 

Alcohol and Tobacco Tax Enforcement 

The results of the enforcement programs inaugurated in 1957 have 

dearly demonstrated their effectiveness. These programs are: 

(1) Major Violator Program and East Coast Plan; 

(2) Known Defendant Distillery Seizure Program; and 

(3 ) Preventive Raw Materials Program. 

Report on Operations 37 

During 1961, the success of the Major Violator Program, which had 

n initiated in the Atlanta Region, resulted in a decision to institute 

a nationwide program. On May 2, 1961, internal management instructions were issued for the establishment of a Major Violator Program in each region. Basically, the program involves the identification 

and listing of major violators in each area and the concentration of investigative effort toward their apprehension. The East Coast Plan, directed 

against the syndicated traffic in nontaxpaid alcohol, and its subsidiary 

program, the Junior East Coast Plan, calling for intensive surveillance 

of large-scale violators who are not members of organized syndicates, 

were conducted with continued effectiveness. These two plans, which 

late in the 1961 fiscal year were incorporated into the nationwide 

Major Violator Program, accomplished the arrest, conviction, and 

imprisonment of many syndicate members as well as unaffiliated major 

violators, and continuous surveillance and harassment of potential violators has resulted in a marked curtailment of unlawful activities. 

Under the Known Defendant Distillery Seizure Program, the number 

and percentage of distilleries seized with defendants increased over 

1960. This progress was due in large part to management emphasis 

on the use of investigative aides in the perfection of criminal cases 

which brought about a greater awareness on the part of investigators of 

the advantages of scientific crime detection. 

The Preventive Raw Materials Program is designed to prevent the 

erection and operation of illicit distilleries by ( a) soliciting the voluntary 

cooperation of dealers in refusing to sell the essential materials to known 

violators or suspected persons, (b) invoking the provisions of the "Raw 

Materials Laws and Regulations," and ( c) prosecuting those who violate the provisions of these Regulations. Extension of the laws in July, 

1959, to include the containers used by illicit distillers has provided the 

enforcement personnel with another weapon which promises to be more 

effective than the control of other essential materials. In desperation, 

violators are using substitute containers of every conceivable type and 

size for the packaging of illicit spirits. 

In view of the fact that most criminal cases in the alcohol and 

tobacco tax field depend for their success upon the introduction of evidence seized during the execution of a raid and the attempted arrest 

of the violator, the development of the law, as a result of the continuing line of cases determined by the Supreme Court as to what constitutes a lawful search, is of major importance in this field. In Chapman 

v. U.S., 365 U.S. 610 (April 3, 1961), the Supreme Court added one 

more steppingstone to this pathway of cases and held that, even though 

made at a landlord's request and with his permission, a search of a 
Annual Report 

dwelling by local police officers during the tenant's absence violated 

the latter's constitutional right to immunity from unreasonable search 

and seizure, notwithstanding facts establishing probable cause to believe 

that illicit distilling was being carried on in his home. 

On the other hand, the Court's decision in Draper v. U.S., 358 U.S. 

. 307 (1958 ) as to the legality of a search incident to the arrest without 

a warrant of a dope peddler based upon hearsay evidence has led to a 

number of decisions denying motions to suppress evidence obtained by 

the Government under similar circumstances. For example, in U.S. v. 

Murphy et al (C.A. 3, May 19, 1961 ) 290 F. 2d 573, the Court upheld 

the seizure of 400 pounds of sugar from a notorious supplier of raw materials to moonshiners because it occurred in the course of an arrest 

without a warrant, which was valid because the Alcohol and Tobacco 

Tax investigator, from the particular facts in the case, had reasonable 

grounds to believe an offense was being committed in his presence when 

he saw two known raw material suppliers surreptitiously unload the 

sugar from a box car in Pennsylvania and load it onto a truck with 

North Carolina license plates. 

In order to gain access to suspected premises or to gain the confidence 

of a violator, it is frequently necessary for investigators to conceal their 

identities and pose as members of the general public . but they cannot, 

of course, entrap the suspect into the commission of an offense or gain 

admittance to his premises through stealth or duress. In U.S. v. Bush 

et a/. ( C.A. 6, Sept. 28, 1960), 283 F. 2d 51, cert. den. 364 U.S. 942, 

the Court of Appeals held that it was not improper for an investigator 

to pretend that he knew the suspect and worked in a nearby foundry 

and thus obtain an invitation to the house where he was shown untaxpaid whisky, thus providing grounds for the issuance of a search warrant. 

Similarly, in U.S. v. Lile, (C.A. 6, May 22, 1961), 290 F. 2d 225, the 

Court held that it was a permissible stratagem which did not constitute 

entrapment for an investigator to pose as a coal miner, wear miner's 

work clothes, and pretend he was bootlegging whisky on the side so 

as to encourage a known violator to sell him untaxpaid whisky. 

On December 19, 1960, the Poison Moonshine Publicity Program 

was initiated, and Internal Revenue Documents No. 5304 "Poison 

Moonshine Poster" and No. 5305 "Poison Moonshine Fact Sheet" were 

widely distributed. The decision to warn the public of the health 

hazards involved in the continued consumption of illicit liquor was based 

on the results of extensive analyses of many samples. The Service cooperated with the Veterans Administration, the United States Army, 

and the Food and Drug Administration in making this study. This 

public information campaign was given excellent coverage by the press, 

Report on Operations 39 

radio, and television on a national scale and preliminary reports indicate that this program has contributed to an increase in the sale of taxpaid liquor in heavy violation areas. 

Seizures for violations of alcohol, tobacco, and firearms tax laws decreased generally as indicated in the following table: 

Seizures and arrests for alcohol, tobacco, and firearms violations 

Item 1961 1960 

Seizures: 

Stills 

number__ 6.826 8.290 

Nontaxpaid distilled spirits g

aid wine do____ 6,377 2,557 

Nash__ wines do 3,669.518 4,274,365 

Vehicle. number__ 2,788 3,103 

Property (appraised value) dollars 2,365,264 2,783,779 

Arrests 1 

allons_. 153,929 196,581 

number 9,503 10,376 

Note.—Includes seizures and arrests in cases adopted, as well as originated, by the Internal Revenue Service. 

a Includes 6 arrests for tobacco tax violations and 514 arrests for firearms violations in 1961; 1 arrest for tobacco tax 

violations and 578 arrests for firearms violations in 1960. 

The decrease in the number of seizures as well as in the number of 

arrests was due primarily to increased concentration on the detection of 

large-scale illicit liquor violations, the apprehension of the principals in 

such operations, and greater emphasis on the Preventive Raw Materials . 

Program. 

The seizure and forfeiture of equipment (principally vehicles) used 

or intended for use in violation of the internal revenue laws continue 

to serve as an effective and important sanction, in addition to criminal 

penalties, in the effective enforcement of the alcohol, tobacco, firearms, 

and gambling laws. The use of this sanction carries with it the obligation to process and rule on petitions for the remission or mitigation of 

forfeiture filed by persons with an interest in the forfeited property who 

did not know and had no reason to believe that the property would be 

used illegally. Some 538 petitions were considered and disposed of during this fiscal year after investigation and processing in the regional offices. 

Firearms Program 

During the past fiscal year, representatives of the Service attended 

several conferences on proposed firearms legislation designed to place 

further curbs on the availability of firearms to juveniles, particularly 

through so-called "mail-order" sales. Some of these conferences were 

called by the staff of the Senate Subcommittee on Juvenile Delinquency 

and others by the Department of Justice. Representatives of the firearms industry and of various police organizations also attended these 

conferences. 

38 
2, 270 2,131 

1,698 

948 

829 

662 

66 

34 

I 67 

Wagering tax cases 

40 Annual Report 

Registrations of firearms totaled 81,702 for fiscal year 1961. Investigation of violations of the National and Federal Firearms Acts and 

the Act of August 9, 1939 (49 U.S.C. 781), resulted in the perfection 

of 531 criminal cases, 514 arrests, and the seizure of 170 vehicles and 

442 firearms. 

Report on Operations 41 

A comparison of indictments and courtroom actions for the last two 

years follows: 

Results of criminal action 

Number of defendants 

Cases Involving Criminal Prosecution 

Total additional taxes and penalties of $96.7 million were involved 

in cases received in the Chief Counsel's office with recommendations of 

criminal prosecution. This reflected an increase of about $3.7 million 

over the amount involved in the preceding year. 

An analysis of criminal tax cases of all types (other than wageringoccupational tax cases handled at the district level) flowing from the 

Assistant Regional Commissioner, Intelligence, through the office of the 

Chief Counsel and the Department of Justice follows: 

Receipt and disposal of cases in Chief Counsel's office 

Status 

Pending July 1 

Received during year total 

With recommendation for prosecution 

With requests for opinion, etc 

Disposed of during year, total 

Prosecution not warranted 

Department of Justice declined 

Prosecutions 

Opinions delivered 

All other closings 

Pending June 30 I 

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

A total of 1,005 income and miscellaneous criminal cases, with 

prosecution recommendations involving 1,114 prospective defendants, 

were forwarded to the Department of Justice. Compared with the 

prior year this was a decrease of less than one percent in the volume of 

referrals. Also in the year ended June 30, 1961, indictments of such 

cases were up 13 percent and the total disposal of cases in those categories in the district courts decreased less than one percent. 

In all criminal cases reaching the courtroom, 5,199 defendants 

pleaded guilty or nolo contendere, 764 were convicted after trial, 364 

were acquitted, and 1,037 were nol-prossed or dismissed. 

Action 

1960 

Total 

Indictments and informations 

Disposals, total 

Plea—guilty or nolo contendere 

Convicted after trial 

Acquitted 

Nol-prossed or dismissed 

Income and miscellaneous cases 2 

839 

832 

630 

71 

47 

84 

421 

Indictments and informations 

Disposals, total 

Plea—guilty or nob contendere 

Convicted after trial 

Acquitted 

Nol-prossed or dismissed 

Alcohol, tobacco, and firearms taxes 

Indictments and information s 

Disposals, total 

Plea—guilty or nob contendere 

Convicted after trial 

Acquitted 

Nol-prossed or dismissed 

I Includes cases dismissed far the following reasons: 9 because of death of principal defendant, 3 because of serious 

illness, and 43 because principal defendant had pleaded guilty or had been convicted in a r lated case. 

2 

 Includes income, estate, gift, and excise taxes other than wagering alcohol, tobacco, and firearms taxes. 

For Supreme Court decisions in criminal cases and for other court 

action of interest, see page 97. 

Federal-State Cooperation 

Much of the negotiation work on cooperative exchange agreements 

which was in progress a year ago has borne fruit. In terms of the number of States with which formal agreements were concluded, it has been 

the most active year yet experienced under the exchange program. 

Agreements with two of the five States that were originally participants 

in this program, North Carolina and Kentucky, were updated. In 

addition, initial agreements concluded with California, Kansas, and 

1960 

1,784 1,590 

182 108 

1,730 1,559 

146 205 

7 51 

1,24

8

4 980 

91 96 

162 227 

2, 506 2, 270 

7, 909 

7,918 

Indictments and Information 

Disposals, total 

Plea—guilty or nolo contendere 

Convicted after trial 

Acquitted 

Nol-prossed or dismissed 

5, 700 

963 

391 

864 

5,847 

4,070 

662 

315 

843 

761 

645 

467 

36 

15 

127 

6,649 

6, 559 

4,750 

827 

322 

560 

527 

320 

65 

22 

120 
42 Annual Report 

Utah raised to nine the number of agreements now in effect. Since 

California embraces 2 Internal Revenue districts, 10 out of 62 district 

offices are now under the formal agreement program. 

Cooperation between Federal and State officials in the enforcement of 

the liquor laws may well be facilitated as a result of the decision of the Supreme Court in Mapp v. Ohio on June 19, 1961, that evidence obtained by State officers through a search and seizure which falls short 

of the Federal constitutional standards is inadmissible in State prosecutions. This decision carries one step further the holding in Elkins v. U.S., 364 U.S. 206, which abandoned the so-called "silver platter" 

doctrine and outlawed the use of such evidence in Federal prosecution. 

Under the Mapp decision searches made by State officials will be 

measured by the same constitutional tests as are now applicable to 

searches by Federal officers and there is thus less likelihood that State 

cases adopted for Federal prosecution may be found deficient because of 

illegally obtained evidence. 

International Operations 

The organization and functions of the Office of International Operations were revised to provide more effective enforcement of Internal 

Revenue laws with respect to foreign transactions. Procedures were 

established to give advice and assistance to district office personnel making examinations of cases involving international transactions. To 

carry out this function, revenue agent groups were established in New 

York and Chicago to specialize in international tax matters. 

Greater emphasis has been given to research and analysis of problems 

created by the rapid growth of foreign investment by United States taxpayers. District offices conducted a controlled audit program involving 

the examination of more than 1,000 corporations engaged in international trade to provide the Service with data concerning the nature 

and extent of foreign activities by United States taxpayers and the 

revenue effect of such activities. Particular attention was given to the 

problem created by the use of "tax havens" by United States taxpayers. 

A study was also instituted with respect to the withholding of taxes on 

income payments going abroad to determine whether it is necessary to 

revise regulations under the Code and treaties as well as to determine 

the nature and extent of foreign investment in the United States. 

In order to promote voluntary compliance by aliens subject to tax 

in the United States and by United States citizens abroad, taxpayer 

assistance in filing returns was rendered to such citizens and aliens in 

38 foreign countries and at nine United States military installations 

abroad. This was accomplished by sending revenue agents to these 

countries and installations during the filing period. The Service has 

Report on Operations 43 

conducted training classes for State Department foreign service officers 

and administrative officers in order to familiarize them with the filing 

requirements of the Internal Revenue Code as they relate to United 

States citizens abroad and aliens with income from sources within the 

United States. 

The Office of International Operations consulted with foreign governments in the disposition of 18 cases involving double taxation. In 

addition, representatives at foreign posts prepared 167 reports involving information in connection with examinations being conducted by 

district Audit and Intelligence divisions. 

Authority to receive, process, and collect social security taxes in Guam 

and American Samoa was delegated by the Secretary of the Treasury 

to the Secretary of Interior who in turn redelegated the authority to the 

Island Governors. Guam and American Samoa personnel were trained 

to receive and process social security tax returns and collect the taxes due 

thereon. A manual was prepared for the use of these Island Governments in processing Forms 941—SS (Employer's Quarterly Federal Tax 

Return Under Federal Insurance Contributions Act). 

The Service maintains permanent foreign posts in Paris, Ottawa, 

Manila, London, and Sao Paulo, with one or more technical employees 

assigned to each post. 

Informants' Rewards 

There were 4,401 claims filed by informants during fiscal year 1961. 

As in prior years, a large percentage of these claims were rejected either 

because they were not substantiated or because they failed to meet the 

eligibility requirements of the regulations. 

The 706 claims approved by district directors resulted in payments to 

informants of $548,914, a 5-percent increase over fiscal year 1960. 

Slightly more than $12 million in taxes, penalties, and interest was 

recovered as a result of information furnished by informants. 

Shown below is a comparison of results for this activity during the 

past 2 years: 

Receipt and disposal of claims for informants' rewards 

Status 1961 1960 

mber. Pending July 1 nudo Received 

Disposed of, total do 

Rejected do.. 

Allowed 

Pending June 30 do 

Amount allowed on claims disposed of 

4, 518 

4, 401 

4,145 

4,744 

4,055 

4, 281 

3,439 

706 

3, 523 

758 

4, 774 

548,914 

4, 518 

522,607 
31, 651 

 = 

2, 052, 493 

--- 

I, 786, 915 

1,576,657 

910, 597 

102, 517 

563, 543 

—=====. 

175, 719 

2, 888 

112, 066 

153, 511 

115,655 

37,856 

= 

634,758 

515,625 

119, 133 

From examination From mathematical From delinquent 

Report on Operations 45 

Summary of Additional Tax From Enforcement 

The collection of additional revenue is not the primary objective of 

the Service's direct enforcement activities. Nevertheless, a vigorous and 

effective program is vital to the prime objective of maintaining and 

encouraging voluntary compliance with tax laws. During fiscal year 

1961, $2.1 billion of additional tax, penalties, and interest were assessed 

as the result of direct enforcement activities. This represents a 4-percent 

increase over 1960 and marks the highest annual total in the history of 

the Service. This total comprises the amounts obtained from examination and mathematical verification, and from delinquent returns secured. 

Tax, penalties, and interest resulting from enforcement efforts 

On thousands of dollars] 

-ADDITIONAL TAX FROM ENFORCEMENT EFFORT 

(including interest and penalties) 

fiscal years 1961 and 1960 

(Millions of dollars) 

1960 

Item 1961 

1,188 1,787 

1961 

1960 1111.11 

Totals: 1961—$2,130 million 

1960—$2,052 million 

Additional tax, penalties, and interest assessed, total 

From examination, total - _ 

Income and profits taxes, total _- 

Corporation income and profits 

Individual and fiduciary: 

Prerefund audit 

Regular audit__ ___ 

Estate and gift taxes_ 

Employment taxes (including withheld income tax) 

Excise taxes 

From mathematical verification of income tax returns 

From delinquent returns secured, total 

By district collection divisions_ 

By district audit divisions 

Claims disallowed 

By district audit divisions 

By regional appellate divisions 

2,129,741 

1,787, 887 

I, 572, 894 

825, 284 

130, 498 

617,111 

178,243 

5,330 

31, 420 

131, 981 

209,873 

159, 194 

50,679 

= 

649,471 

314,575 

334,896 

210 

132 112 154 
1961 

1960 

1,023 998 

Issued Closed 

TAXPAYER DELINQUENT ACCOUNTS 

(Millions of dollars) 

Inventory June 30 

t=a 

1,414 1,410 

1,410 

Report on Operations 47 

Taxpayer Delinquent Accounts 

This year 2.9 million delinquent account assemblies were issued (each 

assembly consists of a notice to the taxpayer and related office records), 

which is over 500,000 or about 22 percent higher than the number issued 

last year. This volume was the second highest on record, only exceeded 

by fiscal year 1958. The amount of tax involved was $1.5 billion, 

about 23 percent more than in 1960. Collections of delinquent accounts totaled $1.1 billion, or 16 percent more than last year. 

Some increase in the number of new delinquent accounts was expected, based upon anticipated normal growth factors and expanded 

coverage in both the audit and delinquent returns activities. The 

extent of the increase, however, exceeded estimates primarily because 

of the unforeseen degree of the economic recession. Unemployment 

among wage earners made collections and case disposals difficult. This 

factor, in addition to the earlier programmed increase in canvassing 

activity, precluded the possibility of bringing about a reduction in inventories. As a result, at the end of June, 960,053 delinquent accounts 

were on hand representing an aggregate amount of $1 billion. This was 

2 percent higher than a year ago in number and 3 percent more in dollars. 

Comparative results of the delinquent account activity for the last 

two years are shown in the following table: 

Taxpayer delinquent accounts 

Status 

Issued 

Closed, total 

By type of action: 

Collected 

Additional collection '---- 

Other disposals 2 

By method of handling: I 

Revenue officers 

Office collection force ' 

Other 

Pending June 30, total 5 P 

Active 

Deferred 

Number (thousands) Amount (thousand 

1961 

1, 473, 956 

1, 470, 431 

I, 070, 804 

378,099 

595, 894 

678.037 

174,972 

I, 023, 263 

21, 528 

dollars) 

1960 

1, 202, 053 

1, 409, 848 

941,416 

468,432 

623,143 

589, 942 

196,763 

1961 

2,931 

2, 913 

2,412 

501 

915 

1,904 

94 

960 

1960 

2, 397 

2, 656 

2,152 

504 

913 

1,657 

86 

942 

841 

101 

SO 

998,209 

618,766 

379, 444 

43,292 

— 

786 

94 

543,766 

436, 206 

I Collections of unassessed amounts and on accounts previously written off which are not reported by method of handling; not available prior to January I, 1961. 

2 

 Includes disposals due to uncollectibility and erroneous and duplicate assessments. 

3 

 Two years not comparable. Effective January 1, 1961, these closings include active and deferred accounts, the latter 

consisting of accounts on which part-Payment agreements have been secured and those on which suitable security has 

been furnished to assure payment, as collateral, mortgages, etc. 

4 

 Effective January I, 1961, comprises the inactive accounts but excludes postponement bonds, collateral agreements, 

a 

etc. Two periods not comparable. Effective January 1, 1961, deferred accounts include part-payment agreements, postponement bonds, collateral agreements. etc. 
1961 1961 1960 1961 1960 1960 

Amount (thousand dollars) 

Type of tax or penalty 

Number 

Liabilities Offers 

Offers accepted, total 

Income, profits, estate, and gift taxes 

Employment and withholding taxes-- 

Alcohol taxes 

Other excise taxes 

Delinquency penalties on all taxes__ 

Specific penalties 

Offers rejected or withdrawn, total 

Income, profits, estate, and gift taxes 

Employment and withholding taxes 

Alcohol taxes 

Other excise taxes 

Delinquency penalties on all taxes 

Specific penalties 

10,693 

927 

851 

103 

291 

3, 234 

5.287 

4, 703 

1,673 

1, 204 

118 

437 

1,117 

154 

8, 510 43, 453 

1,143 

1,060 

138 

280 

3, 545 

2,344 

5, 448 

1,966 

1,419 

136 

512 

1,367 

48 

74,604 

32, 078 

5, 878 

266 

3, 706 

1, 525 

58, 193 

9, 945 

638 

5,176 

652 

72, 865 

55, 566 

9,852 

513 

5, 881 

1,053 

52, 088 

39,613 

6,456 

410 

3,774 

1,835 

9, 708 

6, 166 

1,667 

59 

1,426 

322 

69 

11, 451 

8,643 

1,735 

98 

843 

127 

5 

11,862 

8,676 

1,844 

83 

846 

342 

71 

12,563 

9,392 

1,892 

61 

968 

237 

13 

48 Annual Report 

Despite higher inventories, however, further significant inroads were 

made in reducing the number of older accounts. Accounts with 

balances 2 years old and over were reduced to 91,924, or 10 percent of 

total inventory compared with 134,049, or 14 percent a year ago. This 

decline in the face of increasing inventories reflects the continuing 

emphasis being given this phase of delinquent account activity. 

Delinquent accounts closed totaled 2.9 million in the amount of 

$1.5 billion, increases of 10 percent and 3 percent respectively, over 

last year. 

Emphasis on collection of delinquent accounts by office collection 

methods continued to show encouraging progress. For the fiscal year, 

the office collection force was responsible for 65 percent of the accounts 

closed as compared with 62 percent last year. The importance of this 

technique cannot be overemphasized for to the extent it succeeds, to 

that same extent revenue officer time may be increased for handling the 

more difficult and older cases and for securing delinquent returns. 

In early May, streamlined procedures were issued to accelerate the 

collection of trust fund liabilities. The new procedures require prompt 

contact with the taxpayer, and result in earlier enforcement action when 

necessary. While it is too early to appraise the results, the procedures 

are expected to continue in force indefinitely. 

Offers in Compromise 

Under the compromise decentralization program, district directors 

have assumed responsibility for final acceptance of substantially all tax 

and penalty offers involving liabilities under $25,000, and have absorbed 

most of the review operations formerly performed in the National Office. 

During the year, emphasis was placed on testing and evaluating the 

progress and effectiveness of this increased responsibility. To maintain 

procedural and technical proficiency, an effective National Office and 

regional analytical review and evaluation program was inaugurated. 

Improvements were noted in the overall performance and in the expeditious disposal of all but the most complex cases. 

Significant steps were taken to overcome the difficulties previously 

encountered in field staffing and training of specialized compromise personnel. A Classification Guide for compromise examiners was issued 

and an offer-in-compromise course was developed to give special training to district investigative and review personnel in basic procedures and 

evaluation techniques. 

Continuing progress was made in maintaining workloads in a current 

position to the extent permitted by the complexity of the issues and 

standards of technical evaluation. During the year district offices received 5,040 tax offers, 4,267 delinquency penalty offers, and 5,271 

Report on Operations 49 

specific penalty offers. They disposed of 14,814 offers, leaving 3,551 

on hand as of June 30, 1961. 

Tax offers in which court proceedings are involved, or criminal prosecution is pending, are considered by the Chief Counsel or by the appropriate regional counsel. These offices received 230 offers, disposed 

of 219, and had 159 pending. 

In the alcohol, tobacco, and firearms categories, 315 offers were received, and 363 were disposed of, leaving a total of 44 on hand. 

The overall compromise workload as of June 30, 1961, consisted of 

3,754 cases awaiting consideration at all Service levels. This is an alltime low. The downward trend has been continuous since the reorganization of the Service in 1953. 

A comparative summary of compromise cases closed in the last 2 

years follows: 

Offers in compromise disposed of 

Collection Litigation Legal Services 

The legal work connected with the functions of the district directors' 

offices (formerly reported under the title of Civil Advisory Legal Services) continued to maintain the level of activity which it attained during 

fiscal 1960. The number of cases disposed of was slightly higher than 

the number of cases received, so that the inventory of pending cases 

showed little change. Specifically, 10,341 cases were received in the 

current fiscal year as compared to 10,798 for fiscal 1960, and 10,405 

cases were disposed of as compared to 11,190 for last year. As a result the inventory at the end of June stood at 4,391 as compared to 4,455 

cases a year ago. For details of the cases received and disposed of during 

the current fiscal year, see tables 23, 24, and 25 on pages 147 and 148. 
50 Annual Report 

During the current year, and in line with the Service's in-service training program, the lawyers in the regional counsels' offices charged with 

supervision of collection litigation legal services, together with certain 

lawyers in the National Office who have overall supervision of this function, participated in the planning, preparation, and execution of a 

special procedures technical training program. The importance of this 

program can be ascertained from the fact that those attending the 

training sessions were the chiefs and assistant chiefs of the special procedures sections in the district directors' offices, the section of those offices 

which most directly deals with collection litigation matters. 

Aside from the legal work which can be reported on a caseload basis, 

the informal assistance to the district directors' offices, rendered by the 

lawyers in the regional counsels' offices who handle collection litigation 

cases, continued as in prior years. The daily contact with the personnel 

in the district directors' offices by these lawyers, and their continued participation in the in-service training program for revenue officers, helped 

to develop the type of working relationship between the lawyers of the 

regional counsel and the personnel of the district directors' offices that 

is so essential to an effective and smooth functioning operation. 

While three cases pertaining to the problems considered in connection 

with collection litigation legal work are currently pending before the 

United States Supreme Court, for the first time in a number of years 

there were no such cases decided by that Court during the current 

fiscal year. 

supervision of 

the alcohol and 

tobacco industries 

General 

Public Law 85-859, which permitted more flexibility in industry 

operations and placed greater r

esponsibility on distilled spirits plant 

proprietors, was implemented by new and revised regulations effective 

July 1, 1960. No difficulties of substance were experienced during 

the first year of operations under such regulations. A booklet ( I.R.S. 

Publication No. 30) was prepared for distribution to the nearly 400,000 

retail liquor and beer dealers. Its purpose is to explain to such dealers, 

in nontechnical language, the principal Federal laws and regulations 

which affect their activities. This booklet has been favorably received 

by dealers and is used as a source of reference by many State liquor 

authorities. Detailed tabulations relating to the production of distilled spirits, 

beer, wine, and tobacco products during fiscal year 1961 will be presented in a separate Internal Revenue Service publication entitled "Statistics Relating to the Alcohol and Tobacco Industries," which may be 

obtained from the Superintendent of Documents, Washington 25, D.C. 

Authorization of Industry Operations 

The number of permits issued under the provisions of chapters 51 

and 52 of the Internal Revenue Code and sections 3 and 4 of the Federal 

Alcohol Administration Act totaled 2,316. Permits terminated during 

the year numbered 2,532. Details as to permit actions are shown in 

tables 10 through 12, on pages 131 through 133. 

The number of establishments qualified to engage in the production, 

distribution, storage, or use of distilled spirits and alcoholic liquors 

totaled 455,332, as of June 30, 1961, compared with 444,078 reported 

at the close of fiscal 1960. Corresponding figures for manufacturers of 

tobacco products and cigarette papers and tubes, dealers in tobacco 

51 
52 Annual Report 

materials, and proprietors of export warehouses show 2,954 qualified 

establishments on June 30, 1961, compared with 3,051 a year earlier. 

A distribution of these figures by classes of establishments is shown in 

tables 8 and 9, on pages 130 and 131. 

- The National Office processed 581 formulas for rectified products and 

198 formulas for wine; reviewed 3,332 qualifying documents; issued to 

Government agencies a total of 18 permits to use tax-free alcohol and 

8 permits to use specially denatured spirits; approved 118 distinctive 

liquor bottles; and acted on 24 offers in compromise involving violations 

of the internal revenue laws and 21 under the Federal Alcohol Administration Act. There were processed 40,013 applications for label approval, or exemption from label approval; 83,512 alcoholic beverage 

advertisements and 4,381 radio "commercials" were examined; and, 

as a service to industry, an additional 1,363 proposed advertisements 

and projected advertising campaigns were reviewed prior to publication. 

Twenty-three interlocking-directorate applications were considered and 

approved, and 530 revenue rulings, issued prior to the July 1, 1960 regulations program, were reviewed to determine whether such rulings are 

applicable under the new law and regulations. 

The function of approving trade names to be used by permittees 

under the Federal Alcohol Administration Act, which previously had 

been performed at the National Office, was delegated to Assistant 

Regional Commissioners, Alcohol and Tobacco Tax, on October 10, 

1960. More expeditious service to applicants for original and amended 

basic permits will result. 

In cooperation with officials of the Portuguese Government, arrangements have been completed for that Government to issue certificates 

of origin and identity for Portuguese "Moscatel De Setubel" and Portuguese port wines exported to this country. Wines from the following 

countries have now been covered by the compulsory certification system 

provided for in the wine labeling regulations (27 CFR, Part 4) : (1 ) 

France (wines containing 14 percent, or less, alcohol by volume ), (2 ) 

Spain (Rioja Wines), (3) Germany (all table wines other than specialty 

products), (4 ) Hungary (all wines), and (5 ) Portugal (Moscatel De 

Setubel and Port Wines ). 

Certificates of identification and analysis to supplement previously 

required certificates of age and origin have been made mandatory with 

respect to all shipments of French grape brandies (other than Armagnac 

and Cognac) arriving in the United States from foreign ports. This 

supplementary certificate was adopted by the French Government, in 

cooperation with the Internal Revenue Service. 

Report on Operations 53 

Chemical Analyses Research 

Research studies in both the National and regional laboratories required more time than previously because of the need for technical 

information in connection with administrative problems. Four technical 

papers of broad interest were published in periodicals, and three others 

of specific interest were published as internal revenue documents. A 

highlight of the research program was the publication of "Methods of 

Analysis for Tobacco and Tobacco Products," Internal Revenue Service 

Publication No. 445. 

Studies in collaboration with industry continued with respect to 

establishing uniform methods of analysis; evaluation of meters for 

accurately measuring volumes of alcoholic beverages; and experimental 

techniques for aging distilled spirits. 

Approximately 38,500 samples were received and examined in the 

National and regional laboratories of which approximately 10,000 were 

illicit spirits and 6,000 narcotics. In the categories of food, flavors, and 

medicines using taxpaid spirits, 2,811 new formulas were approved while 

3,180 formulas and 3,420 samples were examined and approved for 

products and processes using specially denatured spirits. Labels were 

approved for 5,307 products produced with specially denatured spirits. 

The total volume of samples shows little change from the preceding 

year; however, there was an increase of approximately 20 percent in 

receipt of formulas for foods, flavors, and medicines, and 10 percent in 

both illicit spirits and narcotics. 

On•Premises Supervision 

With the implementation of Public Law 85-859 by regulations on 

July 1, 1960, an opportunity was provided to accelerate a change in the 

concept of on-premises supervision which has been in progress for the 

past several years. This change involves two principal elements: (1) 

transferring to proprietors the responsibility for the performance of 

various manual and clerical tasks; and (2) the use of selective sampling 

methods in lieu of full-time personal supervision. 

It was recognized that the new regulations, plus the cumulative effect 

of earlier changes in procedures, would make possible continuing 

economies in Government personnel. Therefore, after the new regulations had been in effect for several months, a nationwide survey of inspector (on-premises) manpower requirements was conducted at all 

distilled spirits plants and bonded wine cellars where such officers were 

assigned. The survey was based on uniform guides for the assignment 

of Government officers to particular plant duties, and using these guides, 

it was determined that additional economies could be effected. The in- 
54 Annual Report 

Spector (on-premises) staff has accordingly been reduced through 

attrition, transfers to other assignments within the Alcohol and Tobacco 

Tax Division, and transfers to other Service activities. This reduction 

in staff will continue to the extent that proposals, designed to further 

_streamline functions heretofore performed by Government officers, are 

upon testing found to be successful. 

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

plants whose operations and activities involved transactions in distilled 

spirits as follows: production, 801.8 million tax gallons; denaturation, 

439.1 million tax gallons; warehousing, 1 billion tax gallons; and taxpayments, 177.6 million tax gallons. In addition, 84.3 million proof 

gallons of distilled spirits and wines were rectified, and 204 million wine 

gallons of distilled spirits were bottled. 

Inspection of Establishments 

Inspections of establishments for the fiscal year aggregated 36,044, of 

which 26,256 related to plants and permittees other than dealers. 

These figures for the preceding year were 38,561 and 28,066, respectively. The reduction in the number of inspections resulted primarily 

from the substitution of an "inspection by selection" program for the 

previous "scheduled inspection" program. 

New inspection procedures placing added emphasis on the audit 

approach were planned during the year. Some of these changes take 

cognizance of recommendations received from the General Accounting 

Office pursuant to its examination of the permissive activity. 

During the fiscal year, the plants and permittees (other than dealers), 

subject to inspection and having no on-premises supervision, produced 

alcoholic beverages and tobacco products as follows: 93.5 million barrels 

(of 31 gallons each) of beer, 166.5 million gallons of still wines, 4 million gallons of effervescent wines, 4.9 million gallons of vermouth, and 

13.7 million gallons of special natural wines other than vermouth. 

Tobacco products factories, also subject to inspection, produced 

during the fiscal year 6.5 billion large cigars, 147.7 million small cigars, 

73,240 large cigarettes, 518 billion small cigarettes, and 173.7 million 

pounds of manufactured tobacco (including smoking and chewing 

tobacco, and snuff). 

legislative 

developments 

Legislative Preparations 

There was a considerable amount of congressional activity during 

this fiscal year in the field of tax legislation. Public hearings were held 

by the Committee on Ways and Means with respect to the President's 

tax message which covered the following subjects: Tax incentives for 

modernization and expansion; taxation of foreign income, tax withholding on dividend and interest income; repeal of dividends credit and 

exclusion; expenses for travel, entertainment, and business gifts; capital 

gains on sale of depreciable business property; tax treatment of cooperatives and financial institutions; taxpayer account numbers; extension of corporation income and excise tax rates; and taxation of aviation 

fuel. 

Revenue Service representatives attended public hearings and executive sessions held by the Ways and Means Committee in connection with 

legislative proposals, as well as those held by the Ways and Means Committee and the Senate Finance Committee on the legislation enacted as 

set forth below. They also assisted in the drafting of these bills and the 

related committee reports. 

During the year, 30 formal reports on bills were prepared and 

forwarded to the Office of the Secretary of the Treasury. These reports 

dealt with proposals to amend the income, excise, employment, and 

alcohol and tobacco tax provisions of the Internal Revenue Code, proposed amendments to the Federal Firearms Act, the Federal Alcohol 

Administration Act, and the Administrative Procedure Act, as well as 

private bills. Information was also furnished to the Secretary's office 

informally in many instances where time did not permit the preparation 

of a formal report. In addition, the Revenue Service carried out its 

own research and study projects to develop information about tax administrative problems, tax loopholes, and tax inequities. It also considered and evaluated suggestions submitted by taxpayers, including 

Members of Congress. 

55 
56 Annual Report 

Legislation Enacted 

On September 13, 1960, H.R. 12580 (86th Congress), the Social 

_Security Amendments of 1960, was enacted. Among other things, this 

law extends and improves the coverage under the Federal old-age, survivors, and disability insurance system and raises the tax rate on employers under the Federal Unemployment Tax Act from 3 percent to 

3.1 percent (P.L. 86-778 ). 

On September 14, 1960, H.R. 10960 (86th Congress) was enacted. 

It provides that a declaration of estimated income tax by an individual 

is not required if the tax can reasonably be expected to be less than $40. 

It also provides the regulated investment company type of tax treatment 

in the case of real estate investment trusts which distribute 90 percent 

or more of their ordinary income. A further change was a provision to 

exclude any State or local taxes imposed on cigars as a commodity in 

computation of the Federal excise tax on cigars, which is determined 

on the basis of the intended retail price in the principal market (P.L. 

86-779). 

H.R. 4806 (87th Congress), the Temporary Extended Unemployment Compensation Act of 1961, was enacted on March 24, 1961. 

This law provides for a temporary increase in the rate of the Federal 

unemployment tax (P.L. 87-6). 

On June 29, 1961, H.R. 6713 (87th Congress), the Federal-Aid 

Highway Act of 1961, was enacted, effective July 1, 1961, to amend 

certain excise tax provisions. Among other things this law doubles the 

motor vehicle use tax; increases the rates on tires, inner tubes, and tread 

rubber; and extends until 1972 the 4-cent per gallon tax on gasoline and 

diesel fuel (P.L. 87-61). 

H.R. 6027 (87th Congress), Social Security Amendments of 1961, 

was enacted on June 30, 1961. This act increases the self-employment 

tax rates and the Federal Insurance Contributions Act tax rates, and 

provides an extension of time to elect coverage on behalf of ministers 

(P.L. 87-64 ). 

On June 30, 1961, H.R. 7446 (87th Congress), the Tax Rate Extension Act of 1961, was enacted to postpone until July 1, 1962, the reduction in the normal tax rate on corporate income and the reductions in 

certain excise tax rates which otherwise would have become effective 

on July 1, 1961 (P.L. 87-72). 

Thirteen other bills which have an effect on the Federal tax statutes 

were enacted, the following being of particular interest : 

Public Law 86-594 amends the Internal Revenue Code with respect to the 

limitation on the deduction of exploration expenditures. 

Report on Operations 57 

Public Law 86-624 makes perfecting amendments to the Internal Revenue 

Code which were necessitated by the admission of Hawaii into the Union 

as a State. 

Public Law 86-667 amends the Internal Revenue Code to provide an exemption from income tax for supplemental employment benefit trusts. 

Public Law 86-780 amends the Internal Revenue Code to permit taxpayers 

to elect an overall limitation on foreign tax credit. 

Public Law 86-781 adds a new provision relating to the treatment of charges 

for local advertising for purposes of determining the manufacturers' sale 

price. 

A private bill (HR 6767) which would have permitted the filing of 

a tax refund claim, notwithstanding the fact that the claim was not filed 

within the applicable statute of limitations, was passed by the Congress 

but was vetoed by the President on September 8, 1960, on the grounds 

that the relief would be discriminatory as against other similarly situated 

taxpayers and would create an undesirable precedent. 

The Revenue Service formulated and carried out plans for the implementation of the legislation that was enacted. These plans included 

the issuance of statements to the public, the distribution of circulars and 

regulations, and the revision of tax forms. 

Tax Conventions 

Genera/.—Extended discussions took place at Washington and abroad 

with a number of countries directed to original and supplemental conventions. The texts of such conventions were in various stages of development at the close of the year. 

The following tax convention became effective in the fiscal year : 

Canada.—The income tax convention of March 4, 1942, as amended, 

was modified, effective after December 20, 1960, by substituting a 15-

percent rate of tax on intercompany dividends for the former 5-percent 

rate. 

Tax conventions pending in the U.S. Senate on June 30, 1961, were 

as follows: 

Japan.—A proposed supplemental protocol modifying the amended 

income tax convention of April 16, 1954, with Japan was transmitted 

to the Senate in August 1960. 

United Arab Republic.—A proposed income tax convention with the 

United Arab Republic was transmitted to the Senate in January 1961. 

Israel.—A proposed income tax convention with Israel was transmitted to the Senate in January 1961. 

Canada.—A proposed estate tax convention with Canada was transmitted to the Senate in March 1961. 
1961 

1960 

Totals: 1961 

1960 

1,1ii 

26,833 

21,835 

1,458 

Caseload Disposal Activity 

During the fiscal year 1961 the total caseload disposals in the Office 

of the Chief Counsel declined to 26,833 from the total of 27,835 disposals during fiscal year 1960. This small decline was the result of 

fewer advisory opinions rendered, offsetting a general increase in the 

disposal of litigation cases. At the close of the fiscal year the total caseload pending.was 22,483, a decline of 1,198 during the year. The principal reason for the decline was that the disposal of Tax Court cases 

exceeded receipts, partly due to the effect of Revenue Procedure 60-18. 

Civil Litigation 

The Government won eight of the ten civil tax cases decided by the 

Supreme Court in fiscal year 1961, compared with twelve of nineteen 

in 1960. The Government also won, in whole or in part, 193 of the 

261 civil tax cases decided by Courts of Appeal (exclusive of bankruptcy, 

receivership, insolvency, lien, compromise and liquor), compared with 

257 of 348 such cases decided in 1960. In each year the Government's 

position was wholly or partially sustained in 74 percent of Court of 

Appeal cases. 

In the trial courts (Tax Court, Court of Claims and U.S. district 

court) the record of Government wins, losses and partial wins appears 

as follows: 

Trial court cases won, lost, or partially won by the Government 

Action 

Tax Court 

1961 1960 

676 

73 

154 

92 

Court of Claims District courts 

1961 

17 

24 

5 

48 

1960 1961 1960 

43 

21 

6 

70 

166 

192 

39 

52 

168 

170 

43 

55 

Won 

 __number._ 

Lost 

do_.__ 

Partially won 

do.___ 

percent__ 

652 

108 

159 

88 

Percent won or partially won 

59 

10,405 

1,264 6,848 

5,636 

4,612 

1,118 1,648 

111 

CASE DISPOSALS BY OFFICE OF 

THE CHIEF COUNSEL 

fiscal years, 1961 and 1960 

legal 

11,192 activities 
60 Annual Report 

Taxes in Litigation 

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

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

their liabilities for taxes and/or penalties. Actions for refunds of taxes 

and penalties are handled at the National Office level and actions for 

redetermination of proposed deficiencies in the Tax Court are handled 

by the nine Regional Counsels. 

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

Court of Claims and the Tax Court, nearly $122 million was successfully defended in refund suits and nearly $117 million was successfully 

defended as proposed deficiency assessments, for a total of over $238 

million of revenue saved for the Government (see the table below) : 

Taxes in litigation 

[In thousands of dollars/ 

Status Total Tax Court' Refund 

litigation 

Pending July 1, 1960 1,418, 581 942, 686 475, 895 

Received 471, 582 347, 769 123, 813 

Disposed of 461, 243 309, 576 151,667 

Pending June 30, 1961 I, 428. 921 980,880 448, 041 

Amount saved 238, 603 116, 855 121, 744 

Includes deficiencies in taxes and penalties but excludes action for overpayments. 

Revenue Procedure 60-18 

During the fiscal year another important step was taken in the handling and processing of Tax Court litigation. In 1958 the Commissioner and the Chief Counsel issued Chief Counsel Order 1958-5, Commissioner's Delegation Order 60, which set forth functions and 

procedures in the settlement of Tax Court cases by Regional Counsel and 

the Regional Appellate Division. The Delegation Order established 

two basic periods, cases in presession status and cases in session status. 

Prior to the date of the trial session, cases were in presession status and 

the settlement thereof was the joint responsibility of Regional Counsel 

and the Regional Appellate Division. On and after that date the cases 

on the trial calendar were in session status and the settlement thereof 

was the responsibility of Regional Counsel. To supplement the Delegation Order as to presession cases the Commissioner and the Chief 

Counsel issued Revenue Procedure 60-18 which became effective with 

respect to all cases calendared for trial by the Tax Court on and after 

November 1, 1960. 

Report on Operations 61 

Prior to the issuance of the Revenue Procedure a greater number of 

settlements were effected after the cases were calendared for trial rather 

than prior thereto. These procedures are built around the Trial Status 

Request Notice issued by the Tax Court to both parties prior to the 

issuance by the Court of the trial calendar. This request notice requires 

both parties to report to the Court on the status of cases included 

therein, and on the basis of information submitted to the Court by the 

parties the Court determines which cases will be calendared for trial. 

The primary purpose of the Revenue Procedure is to push back the 

settlement of cases from the calendared period to the precalendared 

period. The effect of this will be to reduce the number of cases which 

the Court sets on trial calendars, to place the files in the hands of the 

trial attorney upon the issuance of the trial calendar. and to enable the 

attorney to concentrate his efforts in the calendared period on the preparation of the cases for trial. By emphasizing settlement in the precalendared period and the concentration of the trial attorney in the 

calendared period on the preparation of the cases for trial the outlook 

is for better prepared and better tried cases on behalf of the Government, and it can also be anticipated that eventually more cases will be 

settled due to thorough trial preparation. 

Reorganization 

The first major change since 1952 in the organizational structure of 

the Office of the Chief Counsel was made on September 1, 1960. Its 

primary objective was to streamline and consolidate litigation and technical functions under two Associate Chief Counsels. In addition, management and administrative activities were placed under the direction of 

the Assistant to the Chief Counsel. The titles of some of the divisions 

were changed to make them more descriptive. This reorganization was 

further implemented on January 18, 1961, by the establishment of 

branches in all National Office divisions. 

The Office completed the recentralization of the review of proposed 

refunds and credits of income, war profits, excess profits, and estate and 

gift taxes exceeding $100,000. These reviews, together with the preparation of the reports required to be submitted to the Joint Committee 

on Internal Revenue Taxation, are now performed by the Joint Committee Division in the National Office. 
62 Annual Report 

Personnel 

On June 30, 1961 the Chief Counsel's Office had a total employment 

of 1,222 persons, composed of 632 attorneys and 590 non-attorney employees. This represented a substantial increase in staff over the preceding fiscal year. The 632 attorneys were assigned to the National 

Office and regions, as follows: 

Number of 

Office attorneys 

Dallas region 29 

New York City region 61 

Omaha region 

37 

Philadelphia region 

49 

San Francisco region 66 

management 

activities 

General 

The chief mission of the Service is to do everything reasonably possible 

to encourage and achieve more effective voluntary compliance. In the 

management area this requires giving guidance and direction in the 

development of programs for educating taxpayers to their responsibilities; constantly reviewing the organizational structure to make it more 

effective; developing concepts for strengthening of the Service's enforcement arm; broadening recruiting and training programs; and giving 

impetus to a revitalized program to. improve and upgrade office space, 

furniture, and equipment. 

Some of the program accomplishments in 1961 in these areas, not 

discussed in detail elsewhere in this report, are mentioned below. By 

stepping up our efforts to improve these programs which are so vital to 

the success of the Service's primary mission, it is hoped that there will 

eventually emerge and take shape a new image of the Service in the 

mind of the public that will create a heightened respect for our selfassessment system. 

Major Administrative Improvements and Changes 

Savings from improvements.—The Management Improvement Program once again made a major contribution to the efficiency and effectiveness of the Service. Through the efforts of employees at all levels 

in studying the Service's operations and policies, a tangible recurring 

savings of $3.7 million was realized. The Incentive Awards Program 

discussed on page 67 added $755,245, raising the grand total to $4.5 

million. In addition to these recurring savings, there were improvements resulting in one-time savings of $2.1 million and many other improvements of direct benefit to the Service in its operations and to the 

taxpayer by way of better service which, though not susceptible to 

measurement, were nonetheless significant. 

Number of 

Office attorneys 

National Office 246 

Atlanta region 38 

Boston region 23 

Chicago region 40 

Cincinnati region 43 

63 
65 

64 Annual Report 

Anchorage—the newest district.—Anchorage, Alaska, became the first 

new internal revenue district in 40 years on January 6, 1961. It is the 

eleventh district office in the San Francisco Region and raises the total 

number of district offices in the Service to 62. 

Organizational changes in the National Office. In recognition of 

their interrelationships and their increasingly important contribution to 

the Service's mission, the administration activities in the National Office 

were regrouped in September 1960 and placed at the Assistant Commissioner level in the organizational structure. Thus, the new Assistant 

Commissioner ( Administration ) assumed office with jurisdiction over 

the formerly independent Reports and Public Information Divisions, as 

well as the Facilities Management, Personnel, and Training Divisions. 

On January 1, 1961, the former Collection Division was converted 

into two new divisions, the Collection Division and the ADP Division. 

The ADP Division was given responsibility for implementation of the 

ADP system and the closely related returns processing, revenue accounting, and service center operations. The new Collection Division retained 

responsibility for collection enforcement activities. 

The International Operations Division was reorganized as the Office 

of International Operations in August 1960. The primary objectives 

were to organize district-type operations along district organization lines 

and to establish a planning unit ( Operational Research Staff ). 

The two divisions under the Assistant Commissioner ( Inspection) 

were reorganized in fiscal year 1961, to provide better management 

and supervision, and to meet growing responsibilities arising from the 

Service's long-range expansion programs. 

Effective April 3, 1961, the Operating Facilities Division was reorganized and became the Facilities Management Division. The major 

purpose was to place all facilities management activities relating to field 

operating programs in one branch and to place in a separate branch all 

administrative services performed for the National Office. 

Reports program moves forward.—Established in May 1960, the 

Reports Program has permeated every level of the Service. Key people 

at each level were engaged in implementing the initial policy statements 

and directives issued on the program. The first active step was the 

taking of an inventory to identify the existing reports at all levels and 

determine something about their size and complexity. A summary of 

this effort disclosed that 2,456 recurring reporting requirements are in 

force throughout the entire Service. The next major action will be a 

thorough analysis of each report with a view toward improvement or 

elimination. Thus, the extent of the reporting structure has been identified and a foundation laid for continuing with the program 

Report on Operations 

Although most of the first fiscal year of operation was spent in organizing and getting the program underway, a number of reporting 

improvements were accomplished. There were 132 reports eliminated, 

34 improved, and 49 identified as having good potential for later improvement. An all-level study of narrative reporting resulted in the 

elimination of the Service's "Narrative Report." Other improvements 

and reduction in reporting costs were accomplished through the centralization of manual reports compilation work. Overall, in less than half 

of its first year of existence, the Reports Program has resulted in recurring 

savings to the Service of approximately $241,000. 

Personnel 

The Service concentrated its personnel administration resources 

during the past year on four major areas: a greatly expanded college 

recruitment program; development of plans and procedures for redeploying employees affected by the Service's conversion to automatic data 

processing ; strengthened employee-management relations, including an 

employee opinion survey ; and issuance of guides and standards for 

extending the "Blue Ribbon" career service program. 

Recruitment.—During the year, the Service was successful in hiring 

thousands of college-trained persons for additional authorized positions. 

This recruitment was made possible by clearly delineating college recruitment responsibilities at the National, regional, and district office levels; 

improving recruiting techniques and procedures; developing attractive 

recruiting brochures, exhibits, and audio-visual aids; and by using direct 

mail and other information media. 

Under the stepped-up hiring for National Office automatic data 

processing positions, approximately 50 employees were selected for 

digital computer programmer vacancies. 

The number of employees on the rolls at the close of 1961 totaled 

53,680, as compared with 50,199 at the close of 1960. A comparison 

by principal categories is shown in the following summary: 

4,0751 n .61 -6 
66 Annual Report 

Personnel summary 

Location and type 

Man-years realized Number on oils at close 

of year 

1961 1960 1961 1960 

Service, total 53, 206 51,047 53, 680 50, 199 

Permanent 50,663 48,408 51,471 48, 440 Temporary 2, 543 2, 639 2, 209 I, 759 

National Office 13,042 I 2, 910 3, 031 2, 702 Field service, total s 50.164 48, 137 50, 649 47,497 

Collection, total 24, 107 23, 050 23, 626 a 22, 140 

Revenue officers 5, 668 5, 336 5, 769 5, 476 Tax examiners 4, 426 4,03E 4, 502 4, 123 Other s 14,013 13,676 13,355 a 12,541 

Audit, total 16,492 15,596 17,284 15, 965 

Revenue agents 10, 798 10, 366 11, 289 10, 583 Office auditors 2, 545 2, 187 2,657 2,343 Others 3, 149 3, 043 3,338 3, 039 

Intelligence, total I, 949 1,899 2,079 1,902 

Special agents 1, 456 1,418 1,558 1,418 Other 493 481 521 484 

Alcohol and tobacco tax, total 2,875 2. 906 2, E62 2, 914 

Investigators 904 889 915 901 Inspectors 398 398 425 392 Storekeeper-gaugers 670 723 611 719 Other 903 896 911 902 

Appellate, total 1, 389 1, 384 1, 392 1,396 

Technical advisors. 626 629 615 640 Auditors 147 141 147 145 Other 616 614 630 611 

Administration 2, 187 2,218 2,210 a 2,070 Regional Counsel_ 660 733 671 Inspection 452 424 463 439 

Enforcement personnel included above 2 26,865 25, 355 27, 726 25, 955 

I Includes terminal leave man-years for entire Service. 

2 Includes Office of International Operations. 

Revised-102 service center Administration employees, formerly included in Administration, now included in Collection, other. 

4 Includes num her of service center employees on rolls in Administration, and man-years devoted to Administration, 

Audit, and Statistics in the service centers by employees regularly assigned to processing and revenue functions. Also 

includes man-years for pilot ADP installation. 

Includes 4 overseas employees hired locally. 

° Includes revenue officers, tax examiners, revenue agents, office auditors, special agents, and alcohol and tobacco tax investigators, inspectors, and storekeeper-gaugers. 

Conversion to automatic data processing.-Personnel plans for redeployment of employees affected by conversion to automatic data processing were put into effect in the Atlanta region where automatic data 

processing will be initially installed. Prior coordinated efforts by both 

the National and regional offices in testing these plans in two pilot 

districts in the region were of material assistance in assuring the soundness of the measures ultimately taken. In addition, an active information program was launched to make all affected employees aware of 

the progress of ADP installation and the specific programs underway 

to minimize adverse actions. 

Report on Operations 67 

Negotiations with the Civil Service Commission resulted in a number 

of agreements that should aid in the ADP conversion effort. These 

covered such items as temporary promotions, greater flexibility in the 

use of details, waiver of qualification requirements for certain placement actions, temporary appointments to extend beyond one year, and 

the use of dually-qualified employees. These and similar agreements 

now being sought should provide the administrative flexibility needed 

by the Service to meet the problems engendered by ADP. 

Opinion survey.-A major move in the employee relations field was 

the approval of a plan to conduct, during June-December 1961, a 

pilot survey of employee opinions and attitudes. The objectives of the 

survey are (1) to find out what employees like and don't like about 

working conditions and employment in the Service, generally; and (2) 

to determine how well instructions and policies are understood and 

appreciated. The Philadelphia district has been selected as a pilot 

office for the survey which is being conducted by a private firm specializing in this field. If worthwhile results are obtained, the employee 

opinion survey may be extended to other Revenue Service offices. 

Incentive awards.-The incentive awards program comprised of employee suggestions and performance-type awards continued to experience 

substantial growth during fiscal year 1961. While activity in the suggestion program showed no significant increase in the number received, 

growth did occur in the number adopted and in the savings realized. 

The number of adoptions jumped 127 and the actual savings increased 

approximately 23 percent, indicating a higher quality of submissions. 

Awards for superior work performance and special acts and service 

increased 30 percent, from 1,456 in 1960 to 1,892 in 1961. Related 

savings increased 73 percent. Outstanding performance awards were 

approved for 531 employees. 

Position classification program.-Position classification standards and 

guides designed for implementing approved organizational changes and 

as aids in meeting the objectives of the "Blue Ribbon" program were 

issued for the following categories of positions: offer examiner, returns 

classifying officer, conference coordinator-conferee, pension trust examiner, and collection manager. In addition several agreements were 

reached with the Civil Service Commission which served to strengthen 

the grade structure of administration positions, particularly in the field. 

Evaluation.-Evaluation of personnel programs was continued and 

strengthened during the past year, particularly in the field offices. For 

the first time regions and districts were required to establish systems of 

periodic personnel program evaluation and self-evaluation, covering 

all elements of personnel management. Regions and districts developed 

their own regular program evaluations by setting up regional office 

personnel teams corresponding to the National Office Evaluation Team. 

508753 0 -61 -7 
68 Annual Report 

This has resulted in a systematic evaluation of the personnel programs 

in each of the district offices by the regions with a review, coordination, 

and overall evaluation by the National Office. Regular National Office 

Evaluation Team visits to the nine regions and selected districts continued 

in order to assure a high quality personnel program throughout the 

Service. 

Selection and training of supervisory personnel.—An integrated system for selecting and training the Service's supervisors, managers, and 

executives was put into effect in order to provide a career-ladder from 

first-line supervisory to top executive positions in the Service. 

Training 

With the pilot automatic data processing operation scheduled for 

activation in the Atlanta region in fiscal year 1962, plus necessary preparation for the soon-to-follow activation of ADP operation in other 

regions, training in this area received a high degree of emphasis. As an 

initial step to orient the Service's top management in the role and 

capabilities of ADP, an Executive Seminar was held in October 1960 

with 23 top Service officials in attendance. Another seminar was later 

held in Atlanta for top officials of that region in anticipation of its activation of the ADP operation. 

The training of 40 analysts and 80 programmers to occupy positions 

largely located in the National Office was completed. Significant 

progress was made in the training of enforcement personnel in auditing 

and investigative techniques required in examining returns filed by taxpayers who use ADP equipment. A new course in ADP Installation 

Management was developed and initially offered in May 1961. The 

purpose of this course is to assist line managers in adapting their operations to the planned installation of ADP equipment. 

Fiscal year 1961 also marked the conclusion of the basic one-week 

Management Institute program. Early in the first quarter, approximately 630 employees received this general management orientation 

instruction. Since 1955, 4,200 supervisors and managers were enrolled 

in this training. 

On the basis of a comprehensive survey and report completed by an 

independent consultant concerning the training needs of regional 

analysts, an initial two-week management course was conducted for two 

analysts from each region (18 participants). 

Under a comprehensive Administrative Intern Program developed 

for the National Office, 10 interns were selected from within the Service 

and 10 from the Civil Service Commission Management Intern register. 

In the alcohol and tobacco tax permissive area, a training course to 

supplement the MDP–II Training Program was developed to assist 

Report on Operations 69 

middle-management employees in the day-to-day application of management principles to the specific duties of their positions. Twenty-four 

trainee inspectors were recruited for intensive classroom and on-the-job 

training for Alcohol and Tobacco Tax inspectors. A group composed 

of those who successfully completed this training, as well as qualified 

on-premises inspectors, has been enrolled in a new course for the advanced training of inspectors at the development level. 

A number of new training programs were announced representing the 

implementation of additional means for career development as prescribed by the "Blue Ribbon" program. New courses launched include 

an Advanced Alcohol and Tobacco Tax Inspector Training Program, 

an Insurance Company Tax Law Course, a Foreign-Domestic Controlled Transactions Course, an Engineer Revenue Agent Training Program, a Special Procedures Technical Training Program, Regional 

Institutes for Intelligence Supervisors, an in-Service Intelligence Technical Investigative Aids School in connection with the organized crime, 

racketeering, and wagering tax programs, a Basic Inspector Training 

Program (Inspection), an Administrative Intern Training Program, a 

Basic Instructor Training Course, and two correspondence courses in 

writing improvement. Also, a new handbook was prepared for use 

as a training manual in developing potential supervisors in the Appellate 

activity. 

In view of the growth of the training program in recent years and the 

important role it plays in the Service's activities, a Task Force was appointed in April to study the entire training function and recommend 

ways in which it might be improved. 

Facilities Management 

Space and equipment.—The Service reexamined its traditional office 

layouts to find ways of housing more employees in the space available. 

As part of this project, the Service took into account the fact that many 

of its professional employees, such as revenue agents, revenue officers, 

and special agents perform the bulk of their work outside the office. 

As a result, new concepts were applied to office-furniture arrangements, 

and new equipment standards emerged, based on the functions performed by Service employees and the kinds of equipment actually called 

for by these functions. 

New furniture and equipment in keeping with the new standards 

have been satisfactorily tested and the groundwork has been laid for a 

revised long-range equipment program. 

As a long-range solution, agreement was reached with General Services Administration for the Service to include in its own budget all space 
70 Annual Report Report on Operations 71 

costs incident to its expansion. This will enable the Service to plan and 

budget for its future manpower and space needs concurrently. 

Reduction of records and paperwork.—Continuing emphasis was 

placed on issuing guidelines, and vigorously implementing existing instructions to improve paperwork handling and to reduce the quantity of 

records held by the Service. The retirement or destruction of more 

than 236,000 cubic feet of records made available 120,638 square feet 

of urgently needed office space and $442,000 worth of filing equipment. 

Figures on records holdings for 1960 and 1961 are as follows: 

Records holdings and disposition activities 

Status 

Volume of records (cubic 

feet) 

1961 1960 

In Internal Revenue Service custody, beginning of year 

Disposed of, total 

Destroyed 

Retired to Federal Records Center 

In Internal Revenue Service custody, end of year 

In Federal Records Centers, end of year 

637, 092 

236,212 

669, 883 

247,417 

94,143 

142,069 

87,658 

159,759 

601,251 637,092 

748,752 817,966 

Important new guidelines issued include the Form Letter Handbook 

and additional instructions with the Records Disposition Handbook. 

The former is expected to improve the quality and reduce the cost of 

correspondence with taxpayers; the latter, when fully installed, will 

streamline the shipping and requisitioning of records from Federal 

Centers, with an annual estimated saving of 60 man-years. 

In addition, a net Servicewide reduction of more than 11 percent in 

the total number of forms and form letters was achieved. The following figures show the accomplishments in this area: 

Inventory New forms Forms Inventory 

Forms prescribed by— July 1, added dur- eliminated June 30, 

ins, year 

National Office 3, 651 588 678 3, 561 

Regional offices r 8, 374 1, 876 749 9, 501 

District offices 7, 288 895 4, 317 3, 866 

Service centers ∎ 514 353 197 670 

Revised 

Safety and emergency planning.—The Service's safety record in 1960 

was its best in the past 5 years. Awards were presented to 28 district 

offices for having functioned without a lost-time injury for at least one 

year or a million hours. Two of these qualified for 6-year awards, one 

for five, and two for 4-year awards. 

The modernization of the cash protective facilities was completed with 

the installation of money chests in all offices having inadequate 

equipment. 
OBLIGATIONS BY ACTIVITY 

fiscal year, 1961 

41.1 - Collection of revenue 

5.0 

-11114111111 --441114r- 3.1 Taxpayer conferences 

and appeals 

- All other 

35.1 - Audit of tax returns 

*Includes rulings, technical planning, and special 

technical services-1.6% • Legal services-2.6% • 

Inspection-1.3% • Statistical reporting-.7% • 

Executive direction-1.4% 

OBLIGATIONS BY OBJECT OF EXPENDITURE 

fiscal year, 1961 

83.1 - Salaries 

181111r- 2.8 - Travel 

13.5 - All other 

Report on Operations 73 

An emergency communications system was planned and additional 

emergency relocation guidelines issued. 

Fiscal Management 

The Congress appropriated $413.9 million for the financing of Internal Revenue Service operations in fiscal year 1961. This was an increase of $49.7 million over 1960 appropriations. The additional 

money financed a salary increase effective July 10 costing nearly $26 

million; the Service's contribution of approximately $3 million for employees' health benefit plans which also became effective July 10; an 

increase in automobile reimbursement allowance from 8 cents to 10 

cents a mile costing about $1 million; the first step (approximately 

$13 million) of a long-range program to strengthen enforcement 

and modernize returns processing through conversion to automatic data 

processing, including a pilot automatic data processing center in Atlanta; and personnel promotions and increased requirements and costs for 

supplies, equipment, communications, space, etc. 

Actual obligations in fiscal year 1961 by object of expenditure and 

by location are reported in table 27 on page 149. Total obligations 

amounted to $413.3 million, or 99.8 percent of the funds available, 

compared with total obligations of $363.7 million in 1960. This is an 

increase of $49.6 million in actual obligations. Of the 53,345 planned 

man-years, 53,206 man-years, or 99.7 percent, were actually realized. 

This is an increase of 2,159 man-years over the 51,047 man-years 

actually realized in 1960. 

The distribution of expenditures in fiscal year 1961 is shown in the 

following table: 

Obligations incurred by the Internal Revenue Service 

On thousands of dollars] 

Activity 

Total Salaries Other 

1961 1960 1961 1960 1961 1960 

Total 413, 295 363, 735 345, 771 307,099 67, 524 56, 636 

Rulings, technical planning. and special technical services 6,646 5,834 5,759 5.092 887 742 

Collection of revenue 169,783 149, 413 137,930 122, 712 31, 853 26, 701 

Audit of tax returns 147. 330 128, 174 127, 767 112, 568 19, 563 15,606 

Tax fraud and special investigations 20.820 18,509 17. 415 15,765 3,405 2.744 

Alcohol and tobacco tax regulatory work 28,607 26, 921 23, 128 21. 401 5,479 5,520 

Taxpayer conferences and appeals 15,285 13,774 13, 629 12, 375 1,656 1,399 

Legal services 10, 734 9,2% 9,299 8,017 1,435 1,239 

Inspection 5,486 4,867 4, 427 3,918 1,058 949 

Statistical reporting 3,037 2,595 2,288 2,043 749 552 

Executive direction 5, 567 4, 392 4, 129 3, 208 I, 439 1, 184 

6.9 

Tax fraud and 

special investigations 

Alcohol and tobacco 

tax regulatory work 
74 Annual Report 

A handbook of budget formulation procedures was published, providing permanent basic instructions for the normal budgeting and financial planning procedures. This handbook eliminated the need to issue 

complete instructions on development of financial plans and budget 

estimates each year, and provided a much needed tool for budget analysts and technicians. 

Considerable attention was given to the conversion of payroll and 

related fiscal operations system to stored program magnetic tape equipment. A personnel statistics master file incorporating necessary personnel data has been established, to be included in the tape system. The 

analyses and reports to be prepared from these data will soon be developed. The new system also includes a detailed listing of personnel on 

the rolls, providing information previously available only from manually 

prepared position record cards. 

Long-Range Planning 

The Service's Long-Range Plan was updated during 1961 to take account of revised workload projections, current work performance rates, 

and new research results. The updated Plan provided the basis for the 

preliminary 1963 budget request. 

Long-range objectives include the modernization of returns processing 

operations through automatic data processing; expansion of tax returns 

examination capacity to minimum proportions needed to maintain an 

adequate level of voluntary compliance; increased investigative efforts 

aimed at tax evaders, especially racketeers; and improvement of the 

system to detect and secure delinquent returns. The Plan also provides 

for prompt collection of delinquent accounts arising from higher levels 

of tax enforcement; strengthening of enforcement-related activities such 

as the Appellate Division and the Office of the Chief Counsel; and the 

upgrading and improvement of space and equipment used throughout 

the Service. The broad programs needed to attain these objectives are 

scheduled over a number of years. 

Systems Review and Coordination 

The need for continued coordination of the many control and processing activities of the Internal Revenue Service has been intensified with 

the recent adoption of the master file concept of tax administration. 

This new approach, made possible through the introduction of highly 

efficient and versatile electronic equipment into the data processing 

operations, requires the central processing of consolidated taxpayer accounts and by its very nature puts increased emphasis on the importance 

of fully integrated activities. 

Report on Operations 75 

Among the more important problems in the area of systems improvement and coordination to which the Service is currently addressing 

itself are: ( a) the extension of the benefits of the master file to enforcement and statistical activities through machine selection of returns for 

examination and statistical reporting in connection with the Service's 

processing of tax returns; (b) the application of advanced electronic 

equipment and techniques to high volume processing operations, particularly in the area of document input preparation where optical scanning and character recognition equipment (in lieu of key punching), 

shows promise of substantial reduction in the present high costs of 

transferring data from documents to magnetic tape; (c) the adaptation 

of punch card and magnetic tape systems used by taxpayers required 

to report information to the Service (e.g. the filing of Forms W-2 and 

1099 ) to the system used by the Service so that such information may 

be entered directly into the ADP system; and (d) the development of 

methods for supplying Service officials with important management information through the exploration of the latest techniques and advanced 

equipment available. 

Current Research Program 

The expansion in research studies reported last year has continued. 

The Treasury Department's decision to recommend legislation for withholding on dividends and interest (investment type) has required acceleration of surveys and analyses concerned with the reporting of dividend and interest income. In addition, it has been necessary to explore 

numerous alternative procedures given consideration in the adoption 

of a withholding system. These investigations relate both to numbers 

of taxpayers affected and the impact of various proposals on payers, 

payees, and the Revenue Service. 

Sample surveys are underway in a number of areas dealing with the 

central problem of determining potential tax liability as a basis for 

planning enforcement programs and measuring their effectiveness. In 

addition to the continuing effort to measure the extent of under-reporting 

of interest and dividends, special projects have been started on the 

extent of illicit liquor operations and possible gaps in compliance with 

other taxes. 

One basic survey conducted during the past year has made available 

for the first time extensive information on compliance by business in 

filing several types of tax returns. Wide variations in delinquency were 

found to exist among the taxes embraced in the survey, namely, income 

tax, social security and withholding tax, unemployment tax, the excise 

taxes required to be filed on Form 720, the highway use tax, and the 

taxes imposed on coin-operated amusement and gaming devices. This 
76 Annual Report Report on Operations 77 

information is now being analyzed for the purpose of revising and 

strengthening various compliance programs. 

An interdepartmental project was carried out jointly with the Department of Labor on the feasibility of accepting reports of labor unions 

filing with that Department to satisfy their requirements for reporting 

to -the Internal Revenue Service as tax exempt organizations. 

The decision of the Service to go forward with a program for automatic data processing has extended the need for and scope of research 

activities. As a first step, proposed legislation was developed for assignment of account numbers to taxpayers not in covered employment 

under the social security system. There is need and desire for more 

precise quantitative indications of how to deal with various phases of 

tax administration under rapid data processing methods. 

Advisory Group 

The Advisory Group was established in 1959 to effect better cooperation and understanding between taxpayers, tax practitioners, and the 

Revenue Service. Four meetings were held with officials of the Service 

last year, and discussions touched on all facets of operations. As a 

result of the suggestions offered by the members, numerous administrative and procedural changes were made. 

In keeping with the Service's commitment to the members, the terms 

of the first Group expired in June 1961. During that month a new 

panel of 12 high-ranking lawyers, accountants, educators, and business 

men was appointed. Like their predecessors, they were chosen from all 

sections of the country and they serve without compensation. The new 

Advisory Group, at their first meeting in June 1961, suggested a comprehensive agenda for discussions throughout the coming year. The 

present members are: 

Hugh F. Culverhouse, Attorney at Law, Jacksonville, Fla.; 

H. Brian Holland, Attorney at Law, Ropes and Gray, Boston, 

Mass.; 

Philip G. Johnson, Certified Public Accountant, Philip G. Johnson 

and Company, Lincoln, Nebr.; 

Donald H. Larmee, Assistant Vice President, Taxes, Pullman, 

Inc., Chicago, Ill.; 

Dana Latham, Attorney at Law, Latham and Watkins, and former 

Commissioner of Internal Revenue, Los Angeles, Calif.; 

Merle H. Miller, Attorney at Law, Ross, McCord, Ice, and Miller, 

Indianapolis, Ind.; 

Leslie Mills, Certified Public Accountant, Price Waterhouse and 

Company, New York, N.Y.; 

Seymour S. Mintz, Attorney at Law, Hogan and Hanson, Washington, D.C.; 

Joseph Pechman, Economist, The Brookings Institution, Washington, D.C.; 

Robert C. Plumb, Certified Public Accountant, Manager, Tax 

Department, American Cyanamid Company, New York, N.Y.; 

John Wilks Riehm, Jr., Dean, School of Law, Southern Methodist 

University, Dallas, Tex.; and 

L. Hart Wright, Professor of Tax Law, University of Michigan, 

Ann Arbor, Mich. 

Internal Controls 

Internal audit.—In the interest of efficient administration, the Service performs an independent review and appraisal of its accounting, 

financial, and other operating activities. This program of internal 

audit provides a protective and constructive service to all levels of management in that determinations are made as to whether the policies, 

practices, procedures, and controls of all Service activities have adequately protected the revenues and have been efficiently and effectively 

carried out. 

Coverage of all major field activities is required at least once each 

year. This includes the various segments of the 9 regional offices, 62 

district directors' offices, 3 service centers, and the Office of International 

Operations, aggregating 252 separate units subject to audit. For the 

second consecutive year, an internal audit was made on each of the 

field activities except those in Anchorage and the Atlanta Service Center which were created late in the year. 

Internal security.—The integrity of the Service's personnel is vital 

to public confidence in our voluntary self-assessment system. To 

strengthen and sustain this confidence, special emphasis is being paid 

to the conduct of personnel in their official relations with taxpayers and 

tax practitioners. Thorough, expeditious, and impartial investigations 

are made and will continue to be made where there is evidence or 

allegation of wrongdoing on the part of employees. Applicants for employment are subjected to thorough character investigations. Involved 

in this area also are the investigations of enrollees and applicants for enrollment, described on page 79. 

Over 6,000 investigations of employees and applicants for employment were completed in 1961, compared with nearly 5,000 in 1960. 

Investigations of the many applicants developed through an expanded 

recruitment -program were responsible for much of the 21-percent increase. Although the number of disciplinary actions increased, the 
78 Annual Report 

ratio to total cases investigated was approximately the same as in the 

preceding year. 

A decrease in enrollment investigations was due primarily to the fact 

that this was the first full year of operations under the revised and streamlined Service procedures covering enrollment of practitioners. Under 

the new procedures effected during the 1960 fiscal year, the requirement for formal investigations was eliminated for attorneys and CPA's, 

who comprise the bulk of enrollees. 

A tabulation of the various types of investigations follows: 

Personnel investigations, other investigations, and disciplinary actions 

Type of investigation and action 1961 1960 

Personnel investigations 

Number of cases closed, total 6, 032 4, 973 

Character and security investigations 3, 892 3, 182 

Conduct investigations 569 514 

Special inquiries 1,571 1,277 

Actions taken as a result of personnel investigations 

Disciplinary actions, total 660 556 

Separations, total I 228 225 

Bribery, extortion, or collusion 7 3 

Embezzlement or theft of Government funds or property 21 19 

Failure of employee to pay proper tax 14 15 

Falsification ordistortionof Government reports, records, etc 103 79 

Unauthorized outside activity 12 10 

Failure to discharge duties properly 7 11 

Refusal to cooperate 1 

Divulgence of confidential information 4 2 

Acceptance of fees or gratuities 6 17 

Personal and other misconduct 53 69 

Suspensions from duty and pay 45 26 

Reprimands, warnings, reassignments, transfers, or demotion 387 305 

Nondisciplinary actions 5,372 4,417 

Other investigations 

Number of cases closed, total 1,256 5,382 

Applications for admission to practice before the Internal Revenue Service 1,080 5,198 

Charges against enrollees 21 50 

Federal tort claims 139 128 

Attempted bribery 2 5 1 

Discrimination 2 11 5 

Includes resignations, retirements, or other separations while employees were under investig tion or before administrative decision was made on disciplinary action where investigation disclosed derogatory information. 

2 Not included in previous reports. 

Several unscrupulous practitioners attempted to extort exorbitant fees 

from their clients under the guise that bribes were to be paid to Service 

employees to influence them in handling their tax cases. In each instance, the employee was cleared of any impropriety and the extortioners 

were prosecuted in State courts. To strengthen public confidence in the 

Service and to protect the integrity of its employees from attack by corrupt influences, recommendations have been made to declare such acts 

illegal under Federal statutes, thereby making them subject to Federal 

prosecution. 

Report on Operations 79 

Enrollment of Practitioners 

Lack of integrity on the part of persons enrolled to practice before the 

Internal Revenue Service could have a disastrous effect on revenue collections by undermining public confidence in our tax system. The Service is determined to fully investigate every incident of corrupt practice 

and to take swift action to discourage and eliminate further occurrences. 

The Director of Practice has intensified the surveillance of improper 

activities by enrolled practitioners. Fiscal year 1961 statistics, shown 

below, do not as yet reveal the increased attention to this area. However, tax practitioners have been put on notice of the Service's great 

concern with proper conduct in all tax matters. Practitioners and the 

public have been asked to assist the Service in this effort. 

Disposition of enrollment and disciplinary cases 

Type of case 1961 1960 

General enrollment—attorneys and agents: 

Applications approved 

Applications withdrawn or abandoned 

Applications denied 

Special enrollment: 

Ex-Internal Revenue Service employees: 

Applications approved 

Applications withdrawn or abandoned 

Applications denied 

Successful examination candidates: 

Applications approved 

Applications withdrawn or abandoned 

Applications denied 

Renewal of enrollment (general and special): 

Applications approved 

Applications withdrawn or abandoned 

Applications denied 

Disciplinary actions: 

Disbarments 

Resignations accepted 

Suspensions 

Reprimands 

4,196 

3 

4 

120 

2 

4 

842 

12 

9 

2,522 

1 

11 

2 

4,964 

43 

15 

112 

4 

1,288 

16 

12 

2,694 

21 

1 

1 

11 

1 

Technical Assistance to Foreign Government Officials 

During fiscal year 1961 technical assistance by the Service was given 

to approximately 150 officials representing the governments of 31 

countries. The steadily increasing activity in this area reflects a growing recognition by revenue officials throughout the world of the outstanding ability of the Service in the field of tax law administration. 

The number and countries represented by such officials visiting our 

National and field offices during the year follows: 
80 Annual Report 

Argentina 10 Indonesia 2 Philippines 6 

Bolivia 16 Iran 3 Puerto Rico 2 

Brazil 3 Iraq 1 Somalia 2 

British Honduras___ 1 Japan 24 Spain 9 

Burma 1 Jordan 1 Sweden 1 

Ceylon 1 Korea 3 Thailand 10 

Chile 17 Mexico 6 Togo 1 

China 9 Netherlands 1 Tunisia 1 

Egypt ( U.A.R. ) ____ 2 Norway 1 Turkey 7 

Guatemala 1 Pakistan 3 Yugoslavia 5 

India 3 

Among the numerous high-ranking officials observing and studying 

our operations during the past year were the following : 

Commissioners of Revenue from Chile and Argentina 

Members of the Brazilian Chamber of Deputies 

First Assistant Secretary, Ministry of Finance, Guatemala 

Under-Secretary and Secretary General, Board of Tax Supervision, 

Office of the Prime Minister, Thailand 

Member, Central Board of Revenue, India 

Treasurer General, Tunisia 

Majority Leader of the Korean National Assembly 

Special Assistant to the Secretary General, Ministry of Finance, 

Indonesia 

Assistant Director, Contributions Directes, Ministry of Finance and 

Economic Affairs, Togo 

An interesting aspect of these visits is their apparent broad influence 

on the methods of taxation and tax administration throughout the world. 

Time and again visitors mention changes in their tax laws and administrative procedures patterned after those of She United States. A number of these officials ultimately play a part in the negotiation of tax 

treaties. 

Because of the close association of tax officials with the top echelon 

in government, it is felt that much is being accomplished by this program in promoting goodwill and enabling the less developed countries 

to progress and become self-supporting as a result of improved tax laws 

and enforcement techniques. 

Statistical Reporting 

Statistical information measuring the response of taxpayers to the 

administration of the Federal tax system indicates increasing complexity 

as well as further growth in volume of the Service workload. For example, the use of itemized deductions on returns filed by individual taxpayers continues to increase and, for the income year 1959, such returns 

Report on Operations 81 

represented 37 percent of the total filed compared with 29 percent for 

1955. Returns on which deductions are itemized involve greater administrative workload than those with standard deductions, because 

they contain greater possibility of error. The returns of corporations 

are likewise increasing in number and in complexity. The following 

summary tables illustrate some of the information revealed with respect 

to individual and corporate taxpayers, comparing the changing characteristics of these taxpayers over a period of years. 

Individual income tax returns: Number of returns and sources of income, 1955-59 

Item 

Income year 

1959 1958 1957 1956 1955 

(Thousands) 

A. Number of returns 

All individual returns, total 60, 271 59,085 59,825 59, 197 58,250 

Taxable 47,497 45.652 46, 865 46,259 44,689 

Nontaxable 12,774 13,433 12,960 12,938 13,561 

Returns with itemized deduction, total 22,510 20,811 20,155 18,459 16,891 

Taxable 20. 761 19, 054 18.569 16,973 15,435 

Nontaxable 1,749 1,758 1,586 1,486 1,456 

Returns with standard deduction, total 37,761 38, 274 39,670 40,738 41,359 

Taxable 26, 736 26,598 28,296 29,286 29,254 

Nontaxable 11, 026 11, 675 11,374 11,453 12,105 

B. Sources of income Million dollars 

All individual returns: 

Adjusted gross income, total 305,095 281,154 280,321 267, 724 248, 530 

Salaries and wages 247, 370 227, 551 228, 077 215, 618 200, 712 

Business or profession 21,431 20, 674 20, 339 21,285 18. 430 

Dividends received 9,356 8,741 9,124 8,606 7,851 

Interest received 4,395 3,659 3,319 2,872 2,584 

Rents and royalties 3, 235 3, 227 3, 259 3, 344 3, 086 

Other income 19,307 17,304 16,202 16,000 15,868 

Taxable returns: 

Adjusted gross income, total 287,775 262,188 262,169 249,551 229,595 

Salaries and wages 233, 804 213,043 214,187 201, 837 186, 154 

Business or profession 20, 222 18,900 18, 596 19,176 16, 349 

Dividends received 8, 789 8, 257 8, 627 8, 201 7, 454 

Interest received 3,754 3,116 2,841 2,468 2,187 

Rents and royalties 2,601 2,608 2,582 2,731 2,526 

Other income 18, 605 16, 265 15,336 15, 139 14,926 

Note.-Returns classified as taxable are those reporting income tax after credits 
82 Annual Report 

Corporation income tax returns: Number of returns and sources of receipts, 

1955-56-1959-60 

Item 

Income year 

1959-60 I 

preliminary) 

1958-59 1957-58 1956-57 1955-56 

- A. Number of returns 

All corporation returns, total 1, 120, 288 I. 033, 191 984,894 925, 184 842, 354 

Active corporations, total 1, 074, 128 990,38! 940, 147 885, 747 807, 303 

With net income 670, 588 611,131 572, 936 559.710 513,270 

Without net income 403, 540 379, 250 367, 211 326, 037 294, 033 

Inactive corporations 45,715 42,251 44, 369 39,214 34,822 

Unincorporated businesses filing under section 1361 445 559 378 223 229 

B. Sources of receipts Million dollars 

Active corporations: 

Receipts, total 816, 826 735,338 720, 414 679,868 642,248 

Business receipts 772,966 696, 594 684, 883 646,673 612,683 

Dividends received 3, 977 3,755 3,453 3, 446 3, 344 

Interest received 20, 896 17, 938 16. 893 15,058 13, 207 

Rents and royalties 7,711 7,471 7, 068 6,830 5,875 

Other receipts 11,276 9, 580 8, 016 7, 861 7, 140 

Returns with net income: 

Receipts, total 719,443 632, 343 625, 621 614,857 584,975 

Business receipts 682. 238 599, 576 595, 602 586, 109 558, 996 

Dividends received 3.867 3,638 3,286 3,352 3,303 

Interest received 17, 425 14,994 14,298 12,855 11,415 

Rents and royalties 6, 135 5,922 5,549 5,613 4,862 

Other receipts 9, 778 8,213 6,887 6,928 6.399 

Note.-The income year 1959-60 covers accou ting periods e ded July 1959 through June 1960. Other income years 

cover corresponding periods. 

Includes Form 1120-S returns. 

Following small pilot operations in 1959 and 1960, there was undertaken a comprehensive new program of publishing data from individual 

income tax returns for the 100 largest standard metropolitan areas. 

The inclusion of this information as a part of the Statistics of Income 

program came as a result of recommendations from many Government 

agencies, members of the Joint Economic Committee of Congress, and 

private research organizations. The first results obtained under this 

program will appear in the report covering the 1959 income year, to be 

published in the fall of 1961. 

The new Statistics of Income volume entitled "U.S. Business Tax 

Returns," first published in 1960, was enlarged and continued as a regular publication. Also, the financial ratios first introduced in the 1957-

58 report on corporations were expanded in the 1958-59 report to cover 

additional classes of data from corporation returns. See page 98 for 

a list of Statistics of Income releases in the 1961 fiscal year, for sale 

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

Washington 25, D.C. 

TAXPAYER PUBLICATIONS 

TAX FORMS-REVISIONS IN 

TAX FORMS-NEW 

REGULATIONS 

REVENUE RULINGS AND PROCEDURES 

ANNOUNCEMENTS OF GENERAL INTEREST 

TECHNICAL INFORMATION RELEASES 

SUPREME COURT DECISIONS 

OTHER COURT ACTIONS 

STATISTICS OF INCOME RELEASES 

608753 0 -61 -8 

appendb 
84 Annual Report 

Taxpayer Publications 

Your Federal Income Tax, IRS Publication No. 17, is the best known 

of the Service publications, next to the return forms and instructions. 

It is a "best seller" among Government publications sold by the Superintendent of Documents, ranking fourth on his list in terms of aggregate 

copies sold since 1955. The 1961 edition contains 144 pages, and sells 

for 40 cents a copy. The booklet contains simplified nontechnical explanations and examples of thousands of problems confronting individual 

taxpayers when they prepare their income tax returns. It contains a 

completely filled-in Form 1040, which is keyed to explanations in the 

text. Almost any problem of the individual taxpayer pertaining to the 

Federal income tax may be solved through use of this booklet. The 

1961 edition, in addition to explanations of about 175 new rules resulting from current changes in law, regulations, and administrative rulings, 

contains improvements in clarity, organization, and scope of subject 

matter covered. The booklet is sold by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C., local 

Internal Revenue offices, and various cooperating newspapers. More 

than 540,000 copies were sold in 1961. 

Tax Guide for Small Business, IRS Publication No. 334, explains 

and answers, in plain nontechnical language, most of the Federal tax 

problems confronting the small business and professional man. It contains 144 pages of detailed explanations of the tax results flowing from 

the establishment of a new business, the operation of a going business, 

and the disposition of a business, whether it is a sole proprietorship, a 

partnership, or a corporation. Federal income, excise, employment, selfemployment, and withholding taxes are explained. A tax calendar and 

a tax check list are included, as well as a detailed subject index. Copies 

are available to the public at 40 cents each through the same channels as 

Your Federal Income Tax. Approximately 160,000 copies were sold 

in 1961. 

Farmers Tax Guide, IRS Publication No. 225, is a 64-page pamphlet 

directed especially at farm tax problems. Further improvements were 

effected in the 1961 edition as a result of suggestions received from 

readers, representatives of the Extension Services of the U.S. Department of Agriculture, and field personnel of the Internal Revenue Service. 

One million copies of this booklet were distributed free to farmers, principally through utilization of the county farm agent channels. 

How the Federal Income Tax Applies to Hurricanes, Floods, Tornadoes, Other Disasters, Thefts and Condemnations, IRS Document No. 

5174, was prepared during the height of the hurricane season in the 

fall of 1960. Its purpose was to acquaint the taxpaying public with 

its rights under the Federal tax laws and to insure that taxpayers obAppendix 85 

tained all the benefits of the deductions to which they were legally 

entitled as the result of their losses from such events. 

Community Property, IRS Document No. 5192, was issued during 

the 1961 filing period as the result of suggestions received in the 

National Office, to help married couples domiciled in community 

property states to clearly understand the Federal income tax law as it 

pertains to them. In addition to explaining the tax law, the document 

contains a work sheet illustrating a comparison between a joint income 

tax return and separate returns of a husband and wife, to show how 

these taxpayers may determine which of the two returns is to their 

advantage. 

Motor Fuel Tax Pamphlets.—These publications explain the latest 

rules regarding various Federal motor fuel taxes. They consist of: 

Federal Use Tax on Highway Motor Vehicles, 

IRS Publication No. 349, 

Federal Gasoline Tax Refund for Non-highway and Transit Use, 

IRS Publication No. 378, 

Farmers Gasoline Tax Refund, 

IRS Publication No. 308. 

Teaching Taxes, IRS Publications Nos. 19, 21, 22, and 27, are part 

of a program designed to introduce high school students, college students, 

and others to the basic principles and rules underlying our Federal 

income tax system. Over 3 million students received the course throughout the country. 

U.S. Tax Guide for Aliens, IRS Publication No. 433, a 27-page 

pamphlet, explains the U.S. tax status of aliens, both resident and nonresident and the tax provisions applicable to each. It also explains the 

basis for determining whether or not an alien is engaged in trade or 

business in the United States and the tax provisions applicable in either 

case. In addition it contains a general discussion of the provisions of 

the U.S. tax treaties. Nearly 31,000 copies of this pamphlet have been 

sent to district offices and to U.S. embassies and consulates overseas for 

free distribution. 

Tax Guide for U.S. Citizens Abroad, IRS Publication No. 54, is a 

26-page booklet explaining the Federal income tax responsibilities of 

U.S. citizens who reside or work abroad. Consulates and other Government offices distributed 333,000 copies in fiscal 1961. 

Information Guides—International Operations 

No. 1—Fulbright Awards and U.S. Income Tax 

No. 2--Income Tax Deductions of Members of the Foreign Service, Department of State 
86 Annual Report 

No. 3—Change of Status Year for Nonresident Alien Taxpayers 

No. 4—Claims for Recovery of Manufacturer's Excise Tax on 

Exported Articles 

No. 6 Preparation of Form 1040B 

No. 7—Foreign Scholars and U.S. Income Tax 

No. 9—U.S. Tax Guide for Aliens 

Miscellaneous Taxpayer Assistance Documents 

Document No. Document No. 

Personal Exemptions and Tax on Admissions and Dues_ 5059 

Dependents 5013 Investment Income 5060 

Employee Expenses 5014 Losses From Operating A 

Sick Pay 5016 Business 5062 

Selling Your Home 5017 Interest Deductions 5074 

Retirement Income and Taxes 5075 

Credit 5018 Filing Your Tax Return__ 5107 

Medical and Dental Ex- Installment and Deferredpenses 5020 Payment Sales 5108 

What Is Income 5045 Alimony 5109 

Tax Calendar and Check List Miscellaneous Deductible Exfor 1961 5046 penses 5110 

Self-Employment Tax 5047 Tax Withholding and EstiSales and Exchanges of mated Tax 5111 

Assets 5048 Accounting Periods and 

Entertainment for Business_ 5049 Methods 5175 

Depreciation, Depletion, Bad Debts 5176 

Amortization 5050 Withholding From Wages by 

Business Expenses 5051 Employer 5177 

Child Care 5052 Repairs and Improvements__ 5178 

Contributions 5053 Partnerships 5179 

Retailers' Excise Tax 5054 Corporations 5180 

Manufacturers' Excise Tax__ 5055 Sale of A Business 5181 

Excise Tax on Communica- If Your Return is Examined 5202 

tions 5056 Documentary Stamp Taxes__ 5286 

Occupational Stamp Taxes 5057 

Revisions in Tax Forms 

Form 1040.—U.S. Individual Income Tax Return. In the individual 

return form, the medical expense schedule on page 2 was designed 

to suit the needs of a majority of taxpayers only. Taxpayers possibly 

entitled to a larger medical deduction (where all or part of the medical 

expenses were for individuals 65 or over) were directed to a new separate 

schedule for medical expenses (Form 2948). In the instructions for 

Form 1040, material was added to cover returns for students and children under 19 years of age. Also, the instructions relating to the deduction for medical expense were revised to reflect a recent change in the 

law regarding the computation of the deduction where dependent 

parents 65 or over are involved. 

Appendix 87 

Form 1120.—U.S. Corporation Income Tax Return. The first page 

of the corporate return was rearranged with the questions being divided 

into two groups, and placed to the right of the name and address box. 

Also, the officer's compensation schedule was revised so as to include 

expense account allowances and the balance sheet was revised so as to 

show loans to and from stockholders. 

Form 1041.—U.S. Fiduciary Income Tax Return. The fiduciary 

return was revised to reflect the additional first year depreciation allowance to estates. 

Employer Identification Numbers.—In anticipation of further development of automatic data processing, a space for entering employers' 

identification numbers was provided on a number of the major return 

forms and instructions. 

Expense Account Abuses.—Forms 1040 (Schedule C), 1120, and 

1065 for 1960 contained a special series of questions dealing with expense account information, including questions covering expenses for 

resort facilities, yachts, and expense-paid vacations of employees. 

New Tax Forms Issued 

Form 1120F.—U.S. Income Tax Return of Foreign Corporations. 

This new form replaced Form 1120NB. It is to be filed by both resident and nonresident foreign corporations. 

Form 2948.—Medical and Dental Expense Statement. This form 

is an optional medical expense schedule for use by taxpayers who may 

have an increased deduction for certain individuals 65 years of age or 

over. 

Form 2950.—Statement in Support of Deduction Claimed Under 

Section 404 of the Code Subsequent to the First Year. This form is 

an optional use schedule for corporations which claim a deduction for 

contributions to pension, profit-sharing, stock bonus, annuity, and other 

employee benefit plans. 

Form 3115.—Application for Change in Accounting Method. Form 

3115 was introduced in order to standardize procedures relating to approval of changes in accounting method. 

Selected Regulations Published 

General 

Income Tax Regulations under section 302(c) (2) of the Public 

Debt and Tax Rate Extension Act of 1960. These regulations published in the Federal Register for September 16, 1960, as Treasury 

Decision 6492, inform the taxpayer as to how, when, and where to 

make the election to apply the provision of section 613 ( c ) (2) and (4) 
88 Annual Report 

of the Code, relating to the depletion deduction for calcium carbonates 

or other minerals used in making cement. 

Income Tax Regulations under section 1361 of the Code, relating 

to unincorporated business enterprises electing to be taxed as domestic 

corporations. These regulations, published in the Federal Register for 

October 11, 1960, as Treasury Decision 6496, provide the manner in 

which certain unincorporated business enterprises may elect to be taxed 

as domestic corporations and how the computation of taxable income 

is to be made. 

Manufacturers' and Retailers' Excise Tax Regulations under section 

4061 (a) of the Code, relating to bonds for importers of motor vehicles. 

These regulations, published in the Federal Register for October 28, 

1960, as Treasury Decision 6499, require certain importers of automobiles, trucks, buses, etc., taxable under section 4061 (a) to secure a 

bond to insure payment of the tax. 

Regulations on Procedure and Administration under section 7701 of 

the Code, relating to definitions. These regulations, published in the 

Federal Register for November 17, 1960, as Treasury Decision 6503, set 

forth the defiinition of partnership, corporation, associations, trusts, etc. 

Income Tax Regulations under various sections of the Code, relating 

to life insurance companies. These regulations, published in the Federal Register for December 10, 1960, January 20, 1961, and April 4, 

1961, as Treasury Decisions 6513, 6535, and 6558, provide the manner 

of computing the income tax for life insurance companies. 

Income Tax Regulations under section 614 of the Code, relating to 

definition of property. These regulations, published in the Federal 

Register for January 10, 1961, as Treasury Decision 6524, concern the 

definition of property and various special rules by means of which taxpayers are permitted to aggregate separate properties for computing 

the depletion allowance. 

Income Tax Regulations under section 501 (c) (3) of the Code, relating to "scientific" organizations. The regulations, published in the 

Federal Register for January 11, 1961, as Treasury Decision 6525, provide the definition of the term "scientific" for purposes of determining if the organization is exempt from tax under section 501 (c) (3). 

Facilities and Services Excise Tax Regulations under sections 4241, 

4242, and 4243 of the Code, relating to excise tax on club dues. These 

regulations, published in the Federal Register for January 20, 1961, as 

Treasury Decision 6536, provide the manner for the computation of the 

excise tax on dues or membership fees, initiation fees, and life 

memberships. 

Appendix 89 

Alcohol, Tobacco, and Firearms 

New Regulations. 

26 CFR Part 285-Cigarette Papers and Tubes, Manufacturers and 

Importers. 

Reissued Regulations. 

27 CFR Part 1-Basic Permit Requirements. 

27 CFR Part 2-Nonindustrial Use of Distilled Spirits and Wines. 

27 CFR Part 3-Bulk Sales and Bottling of Distilled Spirits. 

27 CFR Part 4-Labeling and Advertising of Wine. 

27 CFR Part 5-Labeling and Advertising of Distilled Spirits. 

27 CFR Part 6-Inducements Furnished Retailers. 

27 CFR Part 7-Labeling and Advertising of Malt Beverages. 

27 CFR Part 8-Credit Period to Be Extended to Retailers of Alcoholic Beverages. 

26 CFR Part 179-Machine Guns and Certain Other Firearms 

(National Firearms Act). (Treasury Decision 6557) 

Amended Regulations. 

26 CFR Part 170-Miscellaneous Regulations Relating to Liquors. 

Amended by Treasury Decisions 6484, 6515, and 6550. 

26 CFR Part 197-Drawback on Distilled Spirits Used in Manufacturing Nonbeverage Products. Amended by Treasury Decision 6549. 

26 CFR Part 231-Taxpaid Wine Bottling Houses. Amended by 

Treasury Decision 6562. 

26 CFR Part 250-Liquors and Articles from Puerto Rico and the 

Virgin Islands. Amended by Treasury Decision 6551. 

26 CFR Part 270-Cigars and Cigarettes-Manufacturers, Importers, and Dealers. Amended by Treasury Decision 6502. 

26 CFR Part 290-Exportation of Tobacco Materials, Tobacco 

Products, and Cigarette Papers and Tubes, without Payment of Tax, 

or with Drawback of Tax. Amended by Treasury Decision 6564. 

26 CFR Part 296-Semimonthly Return System for Tax Payment in 

Puerto Rico of Tobacco Products of Puerto Rican Manufacture Shipped 

to the United States. Amended by Treasury Decision 6563. 

Revenue Rulings and Procedures 

With some restrictions, the amount paid by an adopting parent for 

hospital and medical expenses attributable to a child before its placement in the adopting parent's home qualifies as a medical expense (Rev. 

Rul. 60-255, C.B. 1960-2, 105 ). 

The Service discussed certain per diem and mileage allowances paid 

to employees which are in excess of the allowances prescribed in Revenue 
90 Annual Report 

Ruling 58-453, C.B. 1958-2, 67, and whether they may be considered 

as equivalent to an accounting to the employer under section 1.162-

17 (b) of the Income Tax Regulations (Rev. Rul. 60-282, C.B. 1960-2, 

56 ). 

Amounts in an employee's account in a qualified employees trust are 

not "made available" until actually distributed to him, where withdrawal would cause him to lose all prior service credits in the event of 

his reemployment (Rev. Rul. 60-292, C.B. 1960-2, 153). 

Copies of information forms filed with the Department of Labor 

pursuant to the Welfare and Pension Plans Disclosure Act and the 

Labor-Management Reporting and Disclosure Act of 1959 may be used 

to satisfy some of the reporting requirements for internal revenue purposes (Rev. Proc. 60-14, C.B. 1960-2, 937, and Rev. Proc. 61-3, 

I.R.B. 1961-4, 26). 

Guides were set forth with respect to the packaging of mingled distilled spirits, the proof of the mingled spirits, and the mingling of spirits 

of different distilling seasons. (Rev. Rul. 60-353, C.B. 1960-2, 591; 

Rev. Rill. 60-341, C.B. 1960-2, 592; and Rev. Rul. 60-342, C.B. 

1960-2, 592). 

The Service set forth guides for the computation of restricted interest 

under the Internal Revenue Codes of 1939 and 1954 (Rev. Proc. 60-17, 

C.B. 1960-2, 942). 

The Service discussed circumstances under which a contribution to a 

college for use in acquiring or constructing a housing facility for use by a 

particular fraternity designated by the donor may be deductible for 

Federal income, estate, and gift tax purposes (Rev. Rul. 60-367, C.B. 

1960-2, 73). 

The Service discussed the tax consequences where a taxpayer transfers 

appreciated property to an exempt organization, as trustee, under an 

express or implied obligation that the property is to be sold and the 

proceeds invested in tax-exempt securities (Rev. Rul. 60-370, C.B. 

1960-2, 203). 

New procedures have been established to simplify the issuance of 

Certificates of Compliance to departing aliens, particularly those entering or leaving the country as groups and those who enter and leave the 

country more than once during the year (Rev. Proc. 60-35, C.B. 

1960-2, 1014). 

Three-wheeled commercial motor vehicles which are designed for 

light hauling are considered to be automobile trucks for purposes of the 

manufacturers' tax on motor vehicle articles (Rev. Rul. 60-391, C.B. 

1960-2, 299). 

The applicability of the communications tax exemption for certain 

news services depends upon the manner in which the communication 

Appendix 91 

services are utilized by the person to whom the services are furnished 

rather than by the nature of the activity of the company which furnishes 

the services (Rev. Rul. 61-14, I.R.B. 1961-4, 21). 

In view of the Cannelton Sewer Pipe Co. decision, ordinal.) treatment 

processes of minerals used in making brick and tile products and cement 

are limited to those which bring the minerals to shipping form except 

where, in the case of cement, an election is made under Public Law 

86-781 (Rev. Rul. 61-17, I.R.B. 61-5, 10). 

A ruling was published which illustrates the position of the Service 

with respect to the employment tax status of individuals engaged to assist 

public officials in the performance of their official duties (Rev. Rul 

61-21, I.R.B. 1961-6, 60). 

Parents domiciled in a community-property state may join in a 

multiple support agreement with a child where each provides more than 

10 percent of the funds used for the support of the family group (Rev. 

Rul. 61-52, I.R.S. 1961-13, 7). 

Trading in old equipment used in a trade or business on the purchase of new equipment of like kind results in an exchange of property 

under section 1031 of the Code, even though both parts of the transaction are accomplished by separate contracts (Rev. Rul. 61-119, I.R.B. 

1961-26, 8). 

Announcements of General Interest 

A list of the forms to be used by proprietors of distilled spirits plants 

beginning July 1, 1960, under the new Distilled Spirits Plants Regulations, was published (60-62, I.R.B. 1960-28, 23 ). 

The Service outlined the standards it uses for evaluating the performance of revenue agents (60-88, I.R.B. 1960-45, 29). 

The Service clarified its position with respect to the granting of extensions of time for filing individual income tax returns, with special 

reference to those cases in which the delay in filing is due to a tax practitioner's workload (60-90, I.R.B. 1960-45, 31). 

The Special Enrollment Examination held on September 8 and 9, 

1960, for persons who are not attorneys or certified public accountants, 

but who wish to practice before the Service, was published (60-92, 

I.R.B. 1960-46, 54). 

A list was compiled of taxpayer information pamphlets on specific 

subjects available upon request from the offices of District Directors of 

Internal Revenue (61-30, I.R.B. 1961-11, 129). 

A new Internal Revenue Looseleaf Regulations Service was established, divided into five individual services for distribution purposes each 

of which is available to the general public from the Superintendent of 

Documents on a subscription basis (61-32, I.R.B. 1961-13, 22). 
92 Annual Report 

Technical Information Releases 

The situs of the property at the time of loss, and not the residence 

status of the insurer, determines whether gain realized by a Western 

Hemisphere trade corporation from insurance proceeds received for 

goods lost in transit constitutes income from sources within or without 

the United States (T.I.R. 241, July 18, 1960). 

The fact that sales are made pursuant to a revolving credit plan is 

not determinative of whether such sales qualify under the installment 

method of accounting; the contrary court decision in the case of Consolidated Dry Goods Company will not be followed (T.I.R. 247, 

August 23, 1960). 

The Service will, in appropriate cases, continue to regard the filing of 

a notice of Federal tax lien at the taxpayer's domicile as effective with 

respect to all his personal property, wherever situated; decision in Lema 

P. Bagley will not be followed (T.I.R. 260, October 17, 1960). 

Importers of foreign cars, trucks, buses, and other articles taxable 

under section 4061(a) of the Code, were reminded that the new regulations relating to the bonding of such importers became effective with 

respect to those articles arriving in the United States on and after January 1, 1961 (T.I.R. 280, December 19, 1960). 

There is no provision of law authorizing the Service to issue a certificate of discharge of property from Federal tax lien where property has 

been sold at a foreclosure sale commenced by the holder of an encumbrance senior to a junior Federal tax lien and under state 'law such 

proceeding discharges all junior liens (T.I.R. 282, December 22, 1960). 

Strike benefit payments by labor unions will be treated as tax-exempt 

gifts where they arise in situations similar to those found in the Allen 

Kaiser case (T.I.R. 284, January 6, 1961). 

The Service has undertaken a program to consolidate and republish 

in the Federal Register certain regulations issued on a piecemeal basis 

under the Internal Revenue Code of 1954; however, they will not 

appear in the Internal Revenue Bulletin (T.I.R. 285, January 6, 1961). 

A number of procedural changes have been made by the National 

Office of the Service to expedite the preparation, consideration, and 

issuance of regulations and rulings, particularly as they affect conferences with taxpayers and their representatives in connection with their 

requests for rulings (T.I.R. 288, January 13, 1961). 

Foreign reinsurance arrangements between domestic and foreign reinsurers of close relationships will be scrutinized to determine whether 

they represent tax avoidance plans or were entered into for bona fide 

business purposes (T.I.R. 300, February 1, 1961). 

The Service will continue to apply the "temporary v. indefinite" test 

in determining whether a taxpayer is "away from home" for purposes 

Appendix 93 

of allowing a deduction for the cost of his meals and lodging as traveling 

expenses; the contrary court decision in the case of John J. Harvey will 

not be followed (T.I.R. 314, April 18, 1961 ) . 

The Service has specified areas under the Code, in addition to those 

designated in Revenue Procedure 60-6, C.B. 1960-1, 880, in which 

rulings will not be issued (T.I.R. 262, October 28, 1960; T.I.R. 303, 

February 9, 1961; T.I.R. 308, March 2, 1961; T.I.R. 309, 310, and 

311, March 3, 1961; T.I.R. 312, March 13, 1961; and T.I.R. 313, 

March 23, 1961). 

Supreme Court Decisions 

Civil Cases 

On November 14, 1960 the case of Knetsch v. United States (364 

U.S. 361) was decided in favor of the Government. In a pre-1954 

transaction the question was whether taxpayer could deduct interest paid 

on the purchase price of 30-year deferred annuity savings bonds and 

on borrowing on the bonds, where annual borrowings kept the cash 

value of the bonds, on which the annuity or life insurance payments 

depended, at a nominal amount. Taxpayer purchased 30-year maturity deferred annuity savings bonds with a face value of $4 million and 

bearing interest at 21/2 percent, for $4,004,000. The taxpayer gave the 

company his check for $4,000 and a non-recourse note for $4 million 

bearing interest at 31/2 percent. Taxpayer also borrowed against the 

increasing cash value of the bonds. 

The Court held that the "interest" paid by the taxpayer was not deductible. The transaction did not create an indebtedness for it was a 

sham; there was nothing of substance to be realized by taxpayer beyond 

a tax deduction. The Court held that Congress, by disallowing in section 264 (a) (2) I.R.C. 1954 deductions for interest paid on indebtedness incurred to purchase single-premium annuity contracts, did not 

show an intent to allow deduction of interest on pre-1954 transactions 

without regard to whether the transactions created a true obligation to 

pay interest. 

By way of dictum the Court observed that there may well be singlepremium annuity arrangements with nontax substance which create 

"indebtedness" for the purposes of section 23(b) I.R.C. 1939 and section 163 (a) I.R.C. 1954. It concluded, however, that this was not 

such an arrangement. 

On November 21, 1960 the Court decided Meyer v. United States 

(364 U.S. 410) in favor of the Government, sustaining the Court of 

Appeals for the Second Circuit. The issue was whether, for estate tax 

purposes, the estate of this decedent was entitled to a marital deduction 
94 Annual Report 

under section 812(e) of the Internal Revenue Code of 1939 with respect to a portion of the proceeds of two life insurance policies on the 

life of the decedent, where proceeds were payable under options elected 

by the decedent, in specified monthly payments to the surviving spouse 

for life, but, if she died before the expiration of 20 years, thereafter the 

decedent's daughter would receive the payments until the 20 years 

elapsed. The Court held that each policy constituted one property, 

contrary to the taxpayer's contention that the insurer's separate bookkeeping entries for the payments certain and the contingent payments 

divided the proceeds into two separate properties, so that the sum 

necessary to fund the contingent payments beyond the period certain 

qualified for the marital deduction and made only so much of its proceeds payable to the wife as she might live to receive in monthly installments. As she might die at any time, upon the occurrence of which 

event her interest in the proceeds would terminate and pass to another, 

the Court concluded that the property was "disqualified for the marital 

deduction by the express provisions of section 812(e) (1) (B)." The 

Court of Appeals for the Third Circuit had decided the same issue in 

favor of taxpayer in Joseph F. Reilly v. Commissioner, 239 F. 2d 797. 

On March 22, 1961 the Court decided the case of United States v. 

Consolidated Edison Company of New York, Inc. (366 U.S. 380) for 

the taxpayer, unanimously affirming the Court of Appeals for the 

Second Circuit. The Court held that the contested portion of real 

property taxes did not accrue in the year in which remittance was 

made in order to avoid seizure and sale of the property, but in the year 

in which the contest was finally terminated, since it was not until the 

latter year that "all events" occurred which fixed the taxpayer's liability. During the years 1946 through 1950, taxpayer disputed its 

liability for fifteen percent of the New York real property taxes assessed 

against it, but it remitted all of the taxes assessed during those years and 

promptly filed suits to recover the disputed amounts. In 1951 it 

entered into a settlement pursuant to which it admitted liability for 

two-thirds of the amounts in dispute and received a refund of one-third. 

After stating that "the very narrow issue" was whether "the remittance" 

admitted liability for, and constituted "payment" and satisfaction of, 

the contested part of the assessment, and conceding that an unconditional "payment" in apparent satisfaction of an asserted matured liability was persuasive evidence that "all events" had occurred which fixed 

the amount of the tax and determined the liability of the taxpayer to 

pay it, the Supreme Court held that the "remittance" in question was 

in effect "a mere deposit" made for the sole purpose of staying—there 

being no other way to stay an otherwise possible seizure and sale of 

the property for the contested tax while its validity was being "honestly 

Appendix 95 

and diligently contested" in the only way allowed by the law of the 

State, and that it would not do to say that the taxpayer had made an 

unconditional "payment" in apparent "satisfaction" of an asserted matured tax liability and thereby rendered it immediately accruable. The 

narrow scope of the Supreme Court's decision leaves in doubt the rule 

to be applied in many situations involving payment of a contested liability prior to termination of the contest. 

On April 17, 1961, in the case of Bulova Watch Company v. United 

States (365 U.S. 753) the Court affirmed the decision of the Court of 

Claims to agree with the Government that the date from which interest 

accrues on an overpayment of taxes attributable to an unused excess 

profits credit carryback is governed by section 3771(e) of the 1939 Code 

and not by 28 U.S.C. section 2411(a). The Court held that the Government's position was consistent with the intention of Congress as evidenced by the legislative history. Congress, the Court felt, thought that 

it would be unfair to the Government to require it to pay interest on a 

claim brought about by such a retroactive adjustment prior to the time 

when the taxpayer took affirmative steps to bring home to the Commissioner his claim for a readjustment of his past admittedly correct tax 

liability. The section, therefore, the Court agreed, prohibits the accrual of interest prior to the time the taxpayer's claim is filed. This 

construction, the Court noted, recognizes that a specific statute controls 

over a general one and that this is true without regard to priority 

of enactment and without regard to whether the ultimate refund is 

granted administratively or pursuant to a judgment. 

In Commissioner of Internal Revenue v. Jerry Lester (366 U.S. 299) 

decided May 22, 1961, the Court affirmed the Court of Appeals for 

the Second Circuit and held that to constitute child support, not deductible by the husband nor taxable to the wife, the agreement providing for the periodic payments must specifically state the amounts or 

parts thereof allocable to the support of the children. Such child support will not be inferred from the reduction made in the payments on 

the happenings of contingencies as the emancipation, death, marriage 

or attainment of majority of the children. 

On June 12, 1961, the Court decided the cases of Jarecki v. G. D. 

Searle & Company and Polaroid Corporation v. Commissioner (367 

U.S. 303) in favor of the Government. The cases involved the question of whether income resulting from the "discovery" of the drugs 

dramamine and banthine and the Polaroid Land Camera qualified as 

abnormal income under section 456 of the Korean War excess profits 

tax law. In upholding the Government's interpretation of the word 

"discovery" in section 456 (a) (2) (B) as limited to discoveries of natural 

resources, the Court noted that the word "discovery" was used in con- 
96 Annual Report 

junction with the words "exploration" and "prospecting" and applied 

the maxim noscitur a sociis, "that a word is known by the company it 

keeps." It felt that a broader interpretation would conflict with the 

Congressional purpose to cut down on the scope of available relief previously allowed under the World War II excess profits tax law, would 

render certain other provisions in the statute redundant, and would introduce into the statute the difficult distinction between inventions and 

discoveries, which Congress, it thought, could not have intended. The 

Court's decision removes the possibility of large refunds to corporations 

which had derived income during the Korean War from sales of 

newly developed products which might be classified as resulting from 

discoveries. 

On June 19, 1961, the case of American Automobile Association v. 

United States (81 S.Ct. 1727 ) was decided in favor of the Government, 

with four justices dissenting. That case involved the deferral of prepaid membership dues ratably over the annual membership period. 

Taxpayer furnished various services to its members upon demand. Its 

deferral of prepaid membership dues was admittedly in accordance with 

sound commercial accounting principles. The Court of Claims had 

based its decision for the Government on Automobile Club of Michigan 

v. Commissioner (1957) 353 U.S. 180, finding that the deferral method 

employed was for Federal income tax purposes "purely artificial." The 

Supreme Court agreed that taxpayer's deferral method was artificial 

because the deferral of each individual membership fee was not related to 

the fixed expenses of services to be performed for each member, but it 

held that, whether or not the Automobile Club of Michigan decision was 

controlling, there were other considerations requiring disallowance of 

the ratable accrual method by taxpayer. The absence of a statute 

specifically authorizing such deferral, the legislative history of prepaid 

income provision, and the current study of the problem by Congress 

persuaded the Supreme Court that it should leave the matter to the sound 

discretion of the Commissioner pending further action by the Congress. 

On July 17, 1961 the Senate passed and cleared for the President's signature H.R. 929, which would permit membership organizations such as 

taxpayer to defer prepaid membership dues over the membership periods. 

On June 19, 1961, the Court granted certiorari in Commissioner of 

Internal Revenue v. Milwaukee & Suburban Transport Corp. (81 S.Ct. 

1917) and vacated the judgment of the United States Court of Appeals 

for the Seventh Circuit providing that it was proper for a common carrier to accrue estimated liability for tort claims growing out of the operation of its transportation facilities. 

Appendix 97 

On the same date the Court also granted certiorari in Commissioner of 

Internal Revenue v. Mark E. and Marzalie Schlude (81 S.Ct. 1915), 

and vacated the judgment of the United States Court of Appeals for the 

Eighth Circuit providing that a dancing studio could defer the accrual 

of fees which applied in part to instructional services to be rendered in 

a year following the receipt of the fee. Both cases were remanded in the 

light of American Automobile Association v. United States, decided on 

the same date. 

Criminal Cases 

The question of taxability of income from embezzlement was settled 

by the Court's decision in James v. United States (366 U.S. 213) that 

its holding in Wilcox v. United States (327 U.S. 404 ) exempting such 

income from taxation was erroneous. However, the conviction of James, 

a Union leader who embezzled in excess of $738,000 was reversed because 

the element of willfulness could not be established so long as the statute 

defining gross income for tax purposes "contained the gloss placed upon 

it by Wilcox at the time the alleged crime was committed." 

The Court reversed the conviction of Abraham Chaifetz (366 U.S. 

209) for the misdemeanor of failing to supply information, which crime 

the trial court had held was a lesser offense included in the felony of tax 

evasion charged in the indictment. Certiorari was denied as to the 

conviction of tax evasion for another year. 

Other Court Action 

The Seventh Circuit Court of Appeals affirmed the convictions and 

resentencing of defendants in United States v. Shotwell Manufacturing 

Company et al. after review of the record of the rehearing ordered by 

the Supreme Court (355 U.S. 233) because of newly discovered evidence which, if true, indicated that the alleged voluntary disclosure of 

the failure to report black market receipts was a step in a conspiracy to 

"fix" the tax case, possibly to corrupt government officials and to perpetrate a fraud upon the courts. 

Bernard Gold fine and his secretary, Mildred Paperman, entered pleas 

of guilty in connection with attempted evasion of individual and corporate 

income taxes. The indictments involved evaded taxes of approximately 

$800,000. Goldfine was fined $110,000 and sentenced to concurrent 

sentences of a year and a day on certain counts. Sentences of eighteen 

months on other counts were suspended with probation conditioned on 

satisfactory settlement of the civil tax liabilities and full cooperation in 
98 Annual Report 

accounting for the disposition of about $600,000 in cash withdrawn from 

Goldfine's business enterprises. 

United States District Judge George H. Boldt sentenced Mickey Cohen, 

of Los Angeles, to 15 years in prison and fined him $30,000 on 

charges including willful failure to pay assessed income taxes, attempted 

evasion of taxes, concealing assets and making a false statement. Cohen 

had previously been convicted and served a prison sentence for making 

false statements in connection with his income tax returns. 

Statistics of Income Releases 

Individual Income Tax Returns, 1958 (126 pp., 75 cents) 

Corporation Income Tax Returns with accounting periods ended 

July 1958—June 1959, Preliminary ( 41 pp., 30 cents) 

Corporation Income Tax Returns with accounting periods ended 

July 1958—June 1959 ( 274 pp., $1.50) 

Fiduciary, Gift, and Estate Tax Returns, 1958 (116 pp., 70 cents) 

U.S. Business Tax Returns with accounting periods ended July 

1958—June 1959, Sole Proprietorships, Partnerships, and Corporations (100 pp., 60 cents) 

Statistics of Income publications are for sale by the Superintendent 

of Documents, U.S. Government Printing Office, Washington 25, D.C. 

statistica 

table 
NOTES 

All yearly data are on a fiscal year basis, 

unless otherwise specified. For example, 

data headed 14 1961" pertain to the fiscal year 

ended June 30, 1961, and "July 1" inventory 

items under this heading reflect inventories 

as of July 1, 1960. 

In many tables and charts, figures have 

been rounded and therefore may not add to 

the pi'inted totals which are based on unrounded figures. 

Internal revenue districts are listed in this 

section by the names of headquarters cities. 

Each district is identical with the boundaries 

of the State in which the headquarters city 

is located except for the States recapitulated at the bottom of tables 1, 5, 6, and 14. 

A map of the districts appears on page XIV. 

STATISTICAL TABLES 

COLL£CTIONS, REFUNDS, AND RETURNS FrLED 

Tl1ble	 Paae 

1.	 Internal Tevenue collections by sources and by intc:rnal revcnue rcglons,
 

istricts, Slates, and other al-eaq_____________________________________ 102
 

2. Internal revenue collections by sourceS and by quarters. _________________ 118
 

3. Internal revenue collcctions by Sources.___ _ . .. 120
 

4. Internal reVenue collections by principal sourCes, fiscal years 1940-6 L ____ 123
 

1. Internalrcvcnue rcfunds including interest. .. 126
 

6.	 Number of returns filcd by intcrnal rCvenuc rcgions, diHricts, States, and
 

ther areas_ ______________________________________________________ 128
 

7. Internal revenue tax on manufactured products from Pucrto Rico	 ._ _ 130
 

ALCOHOL AND TOBACCO TAXES 

8.	 Establishments qualificd to cngage in the production, distribution, storage,
 

01' usc of alcohol and alcoholic liquors.______________________________ 130
 

9	 Establishments qualificd to engage in the production 01' distribution of
 

tobacco produc ts-_ _______________________________________________ 131
 

10. Permits relating to distilled spirits under chaptcr 51, IRC________________ 131
 

1t Permits for operations relating to alcoholic bevcragcs under thc Fcderal
 

Alcohol .\dministration AcL___________________ 132
 

12 Permits rclating to tobacco under chapter 52, IRC______________________ 133
 

13. Label activity under Fcderal Alcohol Administration Act.________________ 133
 

STAMP TAXES 

14.	 Number of occupational tax stamps issued, by class of tax and by internal
 

reVenue regions, districts, and States ._____________ 134
 

CASES RECElVlNG APPELLATE CONSIDERATIO:\l OR IN LITIGATION 

15.	 Appellate Division proccssing of protcstcd income, prof;ts, cstate, and gift
 

lax cases prior to issuance of statutory noticc__________________________ 142
 

16.	 Appellate Division processing of protcstcd income, profits, esta le, and gift
 

talt casr,s in whieh statutory notices wrrc outstanding ._________ 143
 

17.	 Appellate Division processing of income, profits, estate, and gift tax cases
 

pelitloncd to the Tax Court (dockcted cascs)_________________________ 144
 

18.	 OfTicc of Chief Counsel-Processing of income. profits, estate, and gift tax
 

cases in the Tax Court. ___________________________________________ 145
 

19. Office:	 of Chief Counsel-Results obtaincd in income, profits, estate, and
 

gift tax cases disposcd of in thc Tax CourL___________________________ 145
 

20.	 Offiee of Chief Counsel-Receipt and disposal of Tax Court cases in courts
 

of appcals or in Supreme Court. ____________________________________ 146
 

21 Rcceipt and disposal of suits filed by taxpayers in Fcderal courts__________ 146
 

22_ Civil tax cases decided by courts of appcals and Supreme CourL___________ 147
 

23.	 Receipt and disposal by the Office of thr Chief Counsel of collection, erroneous refund, subpena, summons, and injunction cases_ ________________ t47 

24.	 Ree,.ipt and disposal by the Office of thc Chief Counsel of insolvency and
 

debtor proceedings. ._ _ __ __ _______ ____ 147
 

25. Receipt and disposal by the Office of the Chief Counsel of lien cases and 

noneourt collection litigation cases- ______ ___ __ __ __ __ __ _ 148
 

26 Offiee of Chief Counscl-Cascload report. _____________________________ 148
 

OST OF ADMINISTRATION 

27. Obligations incurred by the Internal Revenue Service___________________ 149
 

28.	 Quantity ilnd eost statistics for printing_____________________________ 151
 

101
 

60870:30_ 01 _t) 
--

--

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

------

-----

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

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

- ----

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

Table 1.-lnternal revenue collections by sourcu and by Internal revenue regions, districts, State, and other areas 

...... lin thousands of dollars. See table 3, p. 120, for tax rates and further breakdown of national totals by sourcesl o 

1'0 

Individual income and employment taxes 

Total internal Corporation -- --­

g4, 401, 086 21,764, g40 58,655,452 13,9971 444 43,741,840 

Internal revenue regions, districts, States, and other areas I revenue eoUee­ income and I Incoma tax lions profits taxes 2 Income tax not withheld and Railroad Unemployment (States represented by single districts indic.led in parentheses; lolals Total withheld' , old·age and retirement 5 insurance for other States shown at bottom of table) disability insurance 3 I j 

(1) (2) (3) (4) (5) (6) (7) 

United Statn. total 571),812 345,356 

Atlanta region _ 6,914,129 1 285 ,229 .3,985,172 . 1,152,681 2,732,252 21, g61 28,278 Allanta , (Georgia) - 1,080, 790 237, 115 713,828 169,201 535.247 4.247 5, 133 Birmingham (Alabama) _ .____ __ __ 620, 448 136,233 457, 849 120,664 329, 295 4,709 3, 180 Columbia _ (South Carolinat . .. 407. 989 101. 905 282, 125 67, 440 212, 134 114 2.438 Greensboro (Norlh Carolina) • • ••• 2, 366, 242 384,191 723, 177 180,006 534,403 2,588 6.179 (MisSlsSlppi) •••_ Jackson 241, 794 32, 276 192,040 62,901 127,325 372 1. 442 Jacksonville. (Florida) 1,398, 537 237,746 1,027,250 378,385 634,651 8.352 5.862 Nashville ( rennessee) 798, 329 155,762 588, 903 174,084 409, 197 1. 579 4.044 Boston region_~ _ 5,267,656 1,013,053 3,680,274­ 909,368 2,734,O..H) 22,425 

Augusla 14,441 (Maine) __ .. _ 242. 125 45,295 179.185 50,517 124,850 2,601 1,217 Boston (Massachusells). _ 2, 748, 822 581,676 1,912,598 435,037 1,463,055 2,849 11,658

Burlington (Vermont) _ 95,841 12.662 75.310 21,394 52,404 1. 066 446 Hartlord _ (Connecticot) _._ 1.610.023 335,272 1,084,375 298,287 771,971 7,871 6.244 - Portsmouth (New Hampshire) 194.367 30,952 154, 153 38,359 114,/57 43 993 Prnvidence-- (Rhode Island). 376,478 67, 197 274,653 65, 773 207,002 II 1,867 

Chlt:t}go f'09(on 16,141,846 4,362,165 8,930,656 1,896,924 6.884,717 iI3,2~O 55,116 Chicago. . (See (b) belO\:;J _~__- -. 6.455,042 1,672. 481 4. t26, 018 878,966 3, 125.089 85,882 25,081 Detroit (Michigan) _ 6,916.466 2, 112,608 3, 116, 177 565.330 2,523,922 6.325 20,600 Milwaukec _ (V~isconsin). _ 1,668,706 389,263 1,085,549 264,812 ' 813,560 331 6,845 Springfield. . _ (See (b) below) .' I. 101. 631 188,413 602,913 187,816 ; 411,146 702 3,249 Cincinnati regIon - ~1.,274.497 2,251,486 6,490,815 1,396, g66 4,934,161 73~ 442 36,247 Cincinnati (See (I) below)_~ 2,038, 168 545, 536 1.268,070 289,386 970, 183 995 7,506 Cleveland _ (See (I) below) 3,761,996 930, 182 2,377, 383 427. 158 1,898.451 38,446 13,328 Indianapolis .•. _ _ (Indiana) _ 2,094.585 340,203 1, 372, 480 279.075 1,086.058 958 6,380 Looisville_. ,. _ _ (Kentucky) 1. 637. 919 166, 769 451,205 136,857 293.250 13.460 2,639 PalkersbUlg_ (West Virginia) 332,181 51,392 257, 147 71,487 183. 779 75 I. 806 Richmond_, _. _ (Virginia) 1,409.647 217,403 764. 530 193,004 5'i/,431 19,508 4,588 Dallas region _ 5,286,474 1,008,441 3,545,903 1,176,696 2, 32J, 048 21,064 Albuquerqoe 28, Og~ j , (New Mexir.o) __ 209,689 22, 964 174,855 52. 059 121,953 840 Auslin _ (See (h) below) I. 638, 853 325,629 1,083.120 354, 729 [ 13.489 6,468 708. "331 Dallas _ (See (h) below) 1,471,195 296, 447 1, 048, 587 369,274 659, 923 13,303 6.087 Litll(' Rock.. (Arkansas) 244,023 34, 405 196.251 73, 285 121,477 169 1.320 New Olieans. (Lo"isi.n.) 784,426 150,944 528. 564 176,340 3'18, 183 I 743 3,298 Oklahoma City. _ (Oklahoma) 938,290 178,052 009 1 514. 527 360. 079 388 3,052 New York City region 151. mml 18,234,140 5,836,035 10,207,992 1, g63, 8g5 8,105,606 i 73,355 65,135 Albany .. (See (e) below)_ 970.375 234,623 694,983 90.085 2,623 4,159 Brooklyn (See (e) below) 1,835,832 258,572 1,421,978 430,038 4,150 B,324 

BoH,lo (St"1(~ (e) thdnw) i, 14? 6n7 770.953 156.345 560. 105 47 4 4~5

M"nlmllan (Se" (e) ~elaw)

:::11.232 b. 940. ~9 I. 197.119 5,631.3;;0 6b.507 ' 45,393 

Syr,IC;use (See (0) elaw) 

13, 6b" 359 4.929 507 479,730 QO,308 336, '90 '!R 2. RO~

u Omilho1 r.eglon 

615.967 107 18 7,161,759 l,<u~, 723 5.018,889 ~.300. 6910 3,570,350 122,76' I 25 180 122,696 98.894 I 39.781 5R. £27 I 48-1 Chevenne. _ (1'!10mrrrg) Abe'deen (Suulh 0 ~olal 5.975 90.813 9.007 29.813 41,068 313 71. 201 I, 122. ,~5 877,438 145,778 124.339 4.581 2 740 ;:, Des MoiTies. (lowal. ---------­ Onnv"T (C"forado) 136.743 764,375 150.378 558.076 201,053 353,523 505 2,995 

c' p.,ga (North Dakrrla) -- -~-~- 105.611 90,046 3,.809 51. 827 I 393 Kan<as Crty (See (c) belowL 10.732 762.986 203,263 481,889 121. 313 352.881 '1,112 3. 053 Omaha ( Nobraska) 571. 266 9,1.504 415.086 129.403 260.600 I 23.152 1.931 ;; 1,508.5Z2 351. 245 94J, 067 206,323 701.162 30,877 5.705 

Sl. Paul (MIfITIPSola) . -_._- Sl. LOUIS. (Seo (c below 1,496,430 348.088 1, 004.353 222. 691 7 ,052 33.0'1.1 S,566 

Vlich,ta . (Kansas) 4/1,940 166,231 283. Z7! 26.437 2.000 Phil d.lphla region ••• _ 

4UlO 126.7 12, :n2, 504 2, 617,446 1, g98, 722 1,748,478 8,090,351 Ut,Ut 47 704 

Baltimore (MMyland and D.C.) - 2,202.372 291. 790 1,601. OIl 317,310 1,237,236 40,137 6.328 Camden (See (d) belol'l). __ 55? 662 102,250 413,472 122,735 288.258 9 2,470 

(See (d) bel owL 2,407,187 518.325 1,534,548 394.817 I, 125,803 3,762 10,166 

Philadelphia (See (g) belac'i)_ New<Hk - -- ----­ ---- 3,206.669 5 8,904 2, 13 . 705 482,285 I. 585,739 5~. 189 11.491 . . Pittsburgh _ (See (g) below)_ 2,418, 34 465.434 1. 565, 973 264.036 1,183.307 7,493 11,m 

Scranton (See ( oelow)_ --_.­ 621.076 \72,321 413,050 73.654 333.477 :,599 3.319 

'I rilminglon (Delow~re) 813.704 468.421 331,964 93,638 236. 530 2 I. 793 Soan Frandcco roglon 11,575,015 1,862,776 8,480,688 2,314,021 $,082.079 41,062 43,526 J 

..... Anclwr,'i:ge. _ (Alaska) -------­ . ---------..- --­ 65.886 4,401 59,330 12.042 47.041 13 235 >::: 168,654 26,4qO 136.022 39,678 95,284 246 814 Hel~Tla_ (MoTitana) -----.-----.--...---- 157,249 24,696 124,701 46.122 77,673 341 '" BOise (Id,"o) 565 ~9

HonDlulu (HawaII) 242.358 42, 57 186, 599 4,1.673 140,658 324 944 "'­

Los A"~eles (See (a) below)_ 782.704 3,523,800 953,593 2,550.598 911 18,698 ;-

Phoenlx (A rilona) - -_.----­ 4,757.067 178.181 103 1,393 

POI!l~"d (OreRQn)_ ------- ­ 350,732 54,523 278,920 99,243 

599,006 485. 194 136,500 343,427 2,613 -,..., 87,948 2.653 ""' 15Q,142 1111,757 34,714 75.412 (') 601 Salt L.kr'-City- (Ut3h) Reno (Nevad,) -- ------------_. --­ 2'l. 016 263. 516 46,528 197,532 45,2fil 150, J86 1,107 981 San Francisf.o_ (See (a) below) -------------­ 2,547,262 1, 814. 955 34,788 12,210 ,­

Se,ttle (Washington) ---~ 3,729,150 598, 105 685,309 

1,091. 255 171,797 830,570 216, 90 oa,6 3 61S 4,432 ;:,­

-.. 81£ 20 

Puerlo Rico om eo' Jnte"-natlonaJ OperaU..,n, 272,441 ill,987 205,91' 137,722 67,406

63,257 21 34,164 3,253 30.910 (") '" Olhel
 209, 184 20,966 17l, BII 134,469 38,496 826 20

Undistriouted:
 DepOSitary receipts_
 ( - 359, 505) _ (-277,867> ---~----.....---­ - (-4.464) ------ '--1 (-(~U~~l _____-10~~65~1::-::: _ Transferred to Government Of Gltam~ ._----­ (-4.464) ---.-. ---- - ­ Withheld taxes of rederal employees. 392,595 . 392; 595 392,595 ___ . _ ____

Totals for States not shown above 

(a) C,lilarni, _____ 1, 638. 903 4.365. 553 35,699 30.908 (1\) IIIInois. ___ 8,486.217 1,380,810 6.071. 062 ....._--- --------­ 7,556,673 1,860,894 4,728,931 1, 066. 782 3,547.236 86,584 28.330

(c) Missouri - . 2,271,508 554,508 1,425,956 328. 136 1,054,043 35,019 8,758 -.. -- ..----­ (d) New Jer<ey. 2, 959..~49 620,576 1,948,020 517,552 1,414,061 3,771 12,636 - (e) Nel'l York 18,234, 140 5,836.035 10,207,992 1,963,895 8, 105,606 73, 355 65,135

(I) 01110 __ -_. ;,800, 164 1,475,718 3,645,453 716, 544 2,868,634 09,441 ZO,804

(g) Pennsylvani •. 6,246, 579 1,236.659 4,117,728 819,975 3,202,520 68.282 26,947 - (h) Texas .­ 3.110,047 622,076 2,131,707 724.003 1,368.356 26.792 12,555

Footnotes on p. 124. 
_ _ 

TobIe 1.-lntemolrevenue collections by sources ond by intetnolrevenue regions, districts, Stales, and other areas-Continued 

lin thousands of dollars. See table 3, p. 120, for tax rates and further breakdown of national totals by sourcesl 

Alcohol taxes 

Excise taxes, 1-----.--------------------------­ Inlernal revenue regions, districts, States, and other areas' total (sum 01 Distilled spirits taxes Estate tax Gift tax columns 11. (Stales represented by single districts indicated in 26.31, 35, 43, Total 48, and 67) parentheses; totals for other States shown at boltom 

or table) Imported Rectifica- Occupa- I Total (collected Domestic tion! tiona I Other" by Customs) taxes 'I 

1 ---u-n'-l-ed-S-b-'.-'-'t-o-t,,-,--_-_-•.-_-__-_-_--__-_-__·I---,1-~-:,-4-.0-1·--1(-:0-),-912-I--1-2~-~1-0)-,,-30-2-1·-3-,-~-11-~-.01-jl-2-,-:~-2-: --:-:-::-'-00- '-1'-:-::-:-6-53- '--(-:-:-494-1 7-4-6- -, 1 '::m 1-(-1-::­ 1 09 ·-1----1----1--- AUent. region _ 114,684. 8,760 1,520,2lI4 50,207 28,178 16,123 10,838 13 602 602 Atlanta. (Georgia)- __ • _ 12.202 821 116,823 7,433 3,704 918 2,583 13 94 96 Birmingham __ (Alabama).. ._ 8,612 1,121 16,634 717 618 14 _ 806 44 42 Columbia __ (South Carolina) ._. _ 9,241 333 14,384 977 564 443 1.. _ • _ 62 57 Greensboro (North Carolina) ..._. ._ 18,589 1,873 1,238,413 836 490 25 _ 1.050 32 288 Jackson _.. (MissisSlppi). ~_. 4,367 394 12,717 184 57 37 Jacksonville (Florida)- • __._. _ 47,373 3,220 13, 7~~ -----ij~oa1- 37~ -----(.)---­ 82,948 31,135 260 49 Nashville __ ., . (Tennessee)-- __ 14,298 999 38,366 8,622 8,491 574 7,831 ••••. _ 52 33 Solton region • . _ 173,686 ti,31 329,331 157,194 133,003 20,921 109.987 1,045 1,040 10 August._.__ _ . (Mallle)---. • __ • 12,153 343 5,149 1,421 I, 127 26 J. 066 13 20 2 Boston (Massachuselts).. ._ 76,050 5,015 173,482 82,459 69, 139 12,292 55,569 757 512 7 Burlington._. (Vermont)_._ . ._ 3,364 331 4.174 2,760 2,699 2,668 ._. _ 31 Harlford (Conneclicut)--- _ 59,307 4.928 126,142 60,360 58,460 4,645 53,229 257 328 Portsmouth . (New Hampshire)---- _ 5,790 219 3,252 213 169 122 18 30 Providence.. (Rhode Island) _. _ 1,409 Lias- • • _ 17,022 475 17,133 9,982 120 Chicago ....g)on _ __ '_' _ 197,634 25,533 2,625,258 53 ,269 362,417 96,375 259,854 3,066 3,_ 3. Chicago (See (b) below). _. _•••• _. 100,398 9,174 546,972 65.893 40,827 27,256 12,547 71 949 4 DelroiL__ • (Michigan)- _ 46,083 12,289 1,629.310 121. 903 82,306 67,513 13,540 199 1,024 31 Milwaukee. (Wisconsin). __ •••••• .) Sprin;;lield. . __ ._ (See (b) below). _ 33,591 2,504 157.800 93,673 2,445 1,606 49 4 786 17,563 1,566 291.176 252,801 236,840 ._. 233,718 2,793 326 3 Cincinnati region _ 1.38,096 U.675 2,382,425 996.257 914, 70 16,231 887,181 9,263 1,150 1A4 Cincinnati. _ . (See (I) below). _ 32.566 2,341 189.654 133,625 120, 143 '00_ _. 118,234 1,507 398 3 Cleveland .. (See (I) below). ._. _ 41. 842 4,363 408,227 36,055 8,675 -5,428 - 2,365 24 839 18 Indianapolis. . (Indiana) _ 24,420 2,406 355,075 274,289 254,062 4,984 242,898 5,861 311 8 Louisvitle (Kentucky)- ___. 12,200 787 1,006,957 542,683 525,819 4,940 518,834 1,871 138 36 Parkersburg (West Virginia).---------­ 7,734 262 15,646 1,558 1,009 947 _ 41 20 RIChmond. (Virginia) ... • 19,333 1,516 406,866 4,863 -•• ---- a79 3,902 _. 8,046 24 58 DaU•• ngion ._ _ _ _ 127,102 14,317 590,731 67,857 20,077 12, 996 I 282 1 749 49 Albuquerque (New Mexico) .. _ 4,270 357 7,242 94 91 (0) f------ (0) 89 2 Austin (See (h) below)---------­ 39,072 6,086 184,947 36,120 136 1 Dallas_ _ (See (h) below)-- _ 40,929 3,464 81,767 227 8,m_. .~~~~_ .__ ._. ~~_I=:==::::::I 109 1 Lillie Rock. (Arkansas)--------------­ 4,533 65 ... 15 _ 757 8,077 310 43 7 New Orleans (Louisiana)-------------­ 19,238 2,452 83,228 30,435 10,862 4,297 6,245 1 315 5 Oklahoma City_____ (Oklahoma).. • _ 19,059 1,202 225,450 670 58, 32 N.wYorkCity iOD ._ ,_ _ _ 362.596 29,735 1.797.782 135,565 80 Albany _. (See (e) below) • _ 22~:~ I~~~~~~~~~~-I 7t~~i (---- i'-~fl 1.745 I 20.288 660 19.820 10.264 273 47 Brookl n .. (See(e,below) _ 55,853 2 897 96 532 54282 3.902 ..._.• _.._.. 3 314 73 J 491 I 25 

Ilullalo (S8e (e) 1,,'101') 33,737 J. 794 74,871 28,922 5 861 5,567 (.) .\ 791 \ 3 

M~nhiJttan __ (Sce (e) belol'l)_ 241. 596 23.752 1,534.154 213,614 187 634 120.771 65, ~55 958 445 5 

SyJaCUS8 (S",,(e)o.low) !I,123 631 12.404 28,483 23,168 27,924 (') >. 244 (.) 

Om_h_, slon 126,8&6 12,75i.< 573,405 156,616 24,444 1.852 14,285 156 1.130 22 Aberdeen ___ 

g~~t:~I1·~--_

_._ '(SOUIll Dakota). 

_ ~~~~~I~~J}

3,109 

l);m 23 I,m 4,695 8~:m

98 

21,3~1

5 

12~5 1.065 

54 

1~~

(.) 

(.) 12 

Des Moire;. . (lowa)_ 12,065 884 32.971 794 100 (.) 99 Far 11_ • (North Dakota). _. ••• 1,636 105 3.098 74 59 58 Kansas CI y __ (See (c) betow)_ 9,894 1,003 66,936 11,499 3,764 3,607 149 4 Oma"a. (Nebraska) __ _ 9,980 365 51. 330 9,841 105 __ ­ 105 1 

SI. LOUIS. __ (See (c) belol'l) 21.372 4,076 187,762 70,768 12,270 5,062 110 208 1 SI. Paul • _ • (Minnesota)­ __ 32,661 3,122 108,206 1,650 6,445 2.724 42 188 2 Wichita (Kansas)----­ 17.113 1.508 25.161 480 374 .___ 74 1 hil delphl...glon . ._ 255,788 42,618 1,307,930 538,2" 380,249 20,523 5,958 2,391 74 

Ballimore _.. __ (M8ryland and O.C.).---.__ 35,045 3,062 271,464 150,712 131,782 10.407 2.992 331 14 

Camden (See(d)belo'll).­ 15.301 611 21,027 7,700 3.948 91 207 19 

Newark _. (See (d) below) _ 75, 100 3,945 275.268 156.070 83.376 325 522 12 

Philadelphia 

~~~~~~rngh.

(See (g) below 

g::m~::~~t:·

66,765 

4~:m

6,826 

24'm 

395,470 

31U~~

135,469 

8~:~~

100,931 

59,~~~

7.780 

2,336 

1,329 

1,220 

582m (.) 

9 

19 

Wilmington_ _ (Delaware). __ 7,797 3,009 2.514 48 46 (.) 45 (.) 

san Fr.n.loco ..... '''" '-'(AI -iI-) --------------­

~~~hora~=___ -:--: W:~O) -) ------------­

233.m 

~,~~~

14,05~

m 98~'m f ~~~

352,3~g

2 2~~

204,3~~

~~

54,51~

1 

145,24 

.. --(.") -­

1.3U 

----(')" 

3,~~

~~ ~:l

18 

~~~e~~IU.-.~~_=-·_--== (~~\~~~:)a- _.________ Los Angeles _ - ~~ee (a\beloYl)- - ­4:059 

9~, m 474 5, m 8:570 34n~:

1:632 

~,m

I,J71 

50, m 958 22, 15~

S-I g611 I 

142 m 59 -----.---81 

~g~:f~~ ~~~:~~:~ ~a~§~~__~~~~~~:~~=~ tm ,~~ lUH :::U 3. 3~I 1,797 1,388 .___ __ I~~ (.) 39 

SF· 

S:~ I~~~mco (S () b I ) -. (we:shfngt~n)~__ .____ 

79329 

23:186 

5068 

'879 

499386 

6<824 209840 39:405 

136 870 11:8l7 -----ia~i69- ----ii6~196 ---. 11.430 (.) i~19j> I 280 

'385 

28 

2 

0111.. o' 'nlomallonal Opa.a';o... 15,259 152 30,068 24,250 24,204 (.) 23,602 602 ----- - - -- _ Puerlo Rico __• ._ _ • .. __ (.) 29,073 24,250 24,204 (.) 23,601 602 ' __ •. 

undi~~~~~)tt;t:ri~-eG~~ernnlent Withheld taxes 01 Federal employees of Gua~-~ __

• 

: - ... 15. _ 2::_ ~_-_=_::::5_--.2 __ :::-_~-_:~l~;;~ :::: :·:=~I:~:~·;~_ 1~.:~:~::;=II:::=~·~::::,~~:;:-:=-: ~~~~~~~~~ ;~ __ -::~ Totals for States not shown above 

(a) California ________ 177,661 10,744 845,940 300,232 187,751 40,326 143,806 1,340 2, 2431 36 (b) lilinois _____ . _______ 117,961 10,740 838, 148 318,694 277,666 27,256 246,265 2,864 1,275 8 

(c) M,SSO"" --- ---- 31,266 5,079 254,699 82,267 16,034 5,062 10,496 113 358 5 

(d) New Jersey -- 90,402 4,556 296,295 163,770 87,324 86,148 416 729 31 

(e) New York ___-= ~-- - 362.,596 29,735 1,797,782 335,565 223,209 ----i4S~261 71,074 1,049 1,745 80 

(1) Ohio -. 74,408 6,704 597,881 169,680 128,818 5,428 120,600 1,532 1,236 21 

(g) Pennsylvanla ___ - 122,544 31,991 737,657 223,750 161,097 10,116 147,116 2,549 1,287 28 

(h) Texas - 80,001 9,550 266,714 36,347 8,969 8,700 21 ------ 245 3 .... 

o 

~,

Foolnotes on p. 124. 
---------- -

---

-- - --- ----

Table 1.-lnternal revenue collections by sources and by internal revenue regions, districts, States, and other areas-Continued 

lin thousJnds of doll"s. See table 3, p. 120, for tax rates and rurther br~ijkdown of nation~1 totals by SO'Jrcesl 

AlcohLd ta;(es-Continued 

Internal revenue regions, districts, States, and other areas I Wines, cordials, etc., taxes 

(States represented by sjn,gle districts indicated in parentheses;
 

totals for olher States shawn at boftam of table)
 Imported 

Total (collected by 

Customs) 

(18) (19) 

Unjted 51:8 tdS. total_ _ _ 'T,801 6,8~

1.804 264 )\lIa~~n~IO" (Geo,gi~-) ------.----­ 319 11 Birmin.r,harn__ (Alabama) ._~ 6 4 Columbia _ •• __ __ (South Carolina) __ •• _ •• 286 5 Greensboro .._ (Narttl Carolina)_ _ _ 102 2 jackson ._. (MrsslSsoppi)_ _ ._.... 7 ---------. Jeeksonvill. (F1ollda) . • 1,079 236 Nashville •• _ (Tenness.e) 4 4 2.5U 391 BO'itA~g~~~:O"__ ._~=- (M-r\tnej~_ ---=:-=:=--­ 222 (") BostJ" _ (Massachusetts) ._. _ 1,115 266 Burlii1&ton __ __ (Vu,mOn!). . • _ 53 (') Hartford _ (CoCITlal:tlr.ut) . _•..• _ 949 88 POltsmouth _ (New Hamvshire)_ ._ ••• • 

Providence __ (Rhode Island). • _ •• __ • • __ '--iiis­ 36­ 7.144 993 ehICt~I~:~~iOn __ .~ (See (b) oelowl- . __-:.-=-__ 5,394 684. Detroit __ (Midllgnn) 1,56, 191 Milwaukee __ (Wisconsin) __ 183 117 Springfield __ (See (b) below)_ •• 2 

ClneinlDU .0010.. 4,282 207 CInclnnall (See -(f) -b-elow;.· 467 398 Cleveland (See (f) below). 711 ---_.- 1~! I 523 Indianapolis __ • __ (Indiana) 148 Loui3'Jilie _ (Kentucky) 1,059 1,033 Parkarsburg _. •• (West VirginlBJ A_. _ 22 ._._------_.­ RichiTlomL (Virglni3) 1,874 17 C6S3 

1,128 225 1, 219 D.Il~ib~;'~l~:~q~~_ (New rl'~~ir.oY---------- --~ 3 i (0) 3 Austin _ (See (h) below) __ ___ 1,389 . 138 1,OS3 

O,llas (See (h) below)_ 33 Little Rock _ (A rkiHlSas) 202 181 Ne" Orleans (Louisiana) 99 87 12 Oklahoma City (Oklahoma)_ 2 Now 'Vork C'h' ngion . _ 15,823 3,108 12, 489 Albany (See (e) belowl_ 272 Brooklyn.__ _ (See (e) below) _. _ 3,083 -_:::::::::::1 271 3,075 

Domestic 

(20) 

8~, 2" 

l,~4

251 

i9,r 1 

600 

2, US 

222 

905 

860 

129 5,966 

4,706 

1,194 65 

1 3,&07 

Occupation",1 taxes I 

(21) 

1,729 

496 

57 

2 

88 

99 

7 243 

58 

4 

53 (.) 

1 1.85 

3 

179 2 

1 469 

70 

35 

137 (') 

22 

205 

22( 

I 

168 

33 

21 

2 

26 

Beer taxes 

Imported IOccupational 

7,349 7,256 I 47,297 I _____ .__ ::__ :1 46,995 

Tota I (collected hy 

Customs) 

Domestic S 

(22) (23) (24) 

800,252 3,746 791,682 

20,225 

3,410 83 

Il7 

112 

79 16,287 127 21,627 

72 12,145 9 

951 

(') 

166 

11 

7 

8 

II 

127 

Ul 

5 

85 

4 

12 

19,37li 

3,338 

------_.. 

16,037 

21.314 

12,049 

873 43 ·--·--·---·11 1-------8392. 8,408 ~64,10a 599 163,801 

19,673 213 19,404 

38,032 347 37,655 

39 90,819 

15,959 

91,044 15.930 71, (04 48 16,971 

13,015 - 12,987 

26,668 39 26,608 

20, 080 20,041 

1,,805 15,732 527 ,\11 

1,309 9 1. 193 

4&, 05~ 1D9 45,163 

(') 

25,387 83 

44 

25,873 

-- ...-- ::-1--..­ 19,311 578 465 19,47,1 I 

96,533 iml 93,78"1

taxes I~

(25) 

4,825 

Bullalo. Sea(.) 11"10") . _ 

Manhallan_ , 'eo (e) 1I010w) ._ 

S~roCU50 • (8." (e) bel"w) _ _._. • _ 

Om_h region 

Aberdeen _ _ ~soutrr 03k.Ol~) -.­ Cheyenne Wyomlngl __._.
 

Denvt"_. _._ Colorado)
 

Des MOines.. (Iowa) • __
 

Fargo__ (No I ih Oakota) __
 

~ansas City. (See (c) below)_
 

Omaha. . (Nebrasko)_
 

St. Louis _ (Seo (c) below)_
 

St. Paul _ (Mlnnesota) _
 

Wichita __ • _ (K,1nsas)_ 

PhD.delphIa ,.glo.. _.. Bdll,m",e _. _ (Ma-rYI;~d -and·D.C,): - - •••- -- -­

camden_ (See (d) helow)_
 

Newark (See (d) below)
 

Philadelphia._ (See (g) below)
 

Pittsburgh_ _•• _ (See (g) belew)
 

Scranton ••• (See (g) below)
 

Wilrnington._. (Delao.vare).____ __ ••• _
 

san Fr.nc'sco roglon.____ .a •• _ 

Anchorage . __ • (Alaska) _ ___ • _. _•• __ 

m~~~iu_ .---~ ::: l~Sf~)a) -:.-::::::=~:~~=:~:: .-: .. Los Angeles_ (See (a) below) _
 Phoenix (Arizona) • • ._. __ a
 

Portland___ (Orenon) .•. __
 Reno. • _. (Nevada). __ • __ • . _
 

Salt Lake Cdy .. _ (Utah)_ _. _
 

San Francisco _ (See (a) below) _
 Seattle __ (Wes~ington). ••• ••• _._.
 

Offlco 0' Intun.tlona. op tatJo.,u.... Puerto Rico Other 

7,038 

5,4JO

68 

3,210 G, P70 I 2,17j o 17 

1 (0) 

2,22l

(') 

167 2,064 

() 

16 (-) (') 

190 22 1€6 2 142 131 11 ( ) 

66.3 661 

974 72 901 259 53 204 

9,710 .58 9,218 14 

1,458 258 1,168 32 813 &12 1 4,737 4,737 

2,694 200 2,494 (.) (') (.) 

(.) 

(') (') 

OZ,5:n 813 51,481 221 (") (0) 

'(oj - ') (.) 

19 1/ 6,652 449 6,203 [0 ('J (0) 9 127 16 24 87 

~:l ('J

(0) 

44,895 303 44,470 123 318 28 790 

Ie, 022 20, ~50

5,314 

129,945 

13 

7 19,944 

552 

14 7,073 

9,735 

57,524 

34, 947 

105 168,321 

17,472 

2,939 

67,957 

31, 844 

23. 06~

5,043 2 

95, 19~ I 

45
 2,189
 

542
 32,859
 

1.854 I, 5~517 

1,542 

28,075 

26, 770 , .~

46 (0) 

60,933
 

35,532
 

64,597
 

70,896
 

96, 533
 39, 684
 59,951
 

25,956
 

(.) 

11-4 

108 

75 

I 

51 

315 

10 

158 

24 

473 

213 1 

"'-T951 

39 

76 

84 I 

15,380 

19,098 

5,052 

129,158 

19,899 405 

7,023 

9,697 

5/,438 

34,6% 

147,122 

17,293 

2,926 

67,937 

31, 628 22, 936 0,002 

1,165 

488 3~. 407 

J,495 

1,793 

1,503 

2/,793 

26, 701 

46 

46 

50.199 

3S,334 

64,461 

70,863 

93,781 

39,595 

59,566 

25, 387 

683 

59 

75 

120 

101 

79 

124 

126 

196 

67 

11 

5 

66 

43 

4 

302 

56 

30 

187 

29 

385 

28 

22 

39 

73 

116 

107 

78D 

1 402 

83 

44 

138 

112 

801 

94 

302 

96 

221 

87 

775 

43 

7 

38 

J47 

1~

50 

39 

81i 

248 

105 

U 

71 

)j 

21 

141 

127 

42 

2 48e 

2 

45 

23 

3 

137 

10 

51 

1 

39 

12~

46 C) 

() 

251 

8 

!3 

3 

801 

5 

30 

48 

>­ " 

::: 

::l 

'"'" 

:::;:, 

w 

";::; 

(:\ 

Totals for SUites not shown abolle. 

--. 

~a) California_._. _____ •• ,­ b) 111,no,,_____ •• ___._.__ ----. (c) Missouri. ___ 

(d) New jersey . .' - ­ (e) New York_._ .- -..... ­ (f) Ohio ._- -­ (g) Pennsylvania 

(h) Texas ____ 

51.547 752 50,672 123 5,396 684 4,707 4 1,636 72 1,562 3 5,550 5,549 I 15,823 3,308 12,489 26 I, 1/9 153 921 104 2,702 200 2,501 1 1,422 138 t,083 201 I 

I 

Footnotes on p. I' 4. 
•• 

---

--

Table 1.-lnternal revenue colleations by sources and by Internal Tevenue regions, districts, States, and other areas-Continued 

lin thousands of dollars. See table 3 p 120 for tax rates and further breakdown or national totals by sourcesl 

Tobacco taxes 

, Internal revenue regions, districts, States, and other areas I 

(States represented by single districts indicated in parentheses; 

totals for other States shown at bottom of table) 

Total CigareUes' 

(26) (27) 

United Stat.at tobl " l,99l,117 

Atlanla reglon.___________________ _ 1,220,380 1,199,740 Atlanta (Georgia) • 584 ._____________
 

Birmingham (Alabama)________________________ 1,452
 Columbia (South Carolina)._ 1,918 .____________
 

Greensboro (North Carolina)___________________ 1,205,306 1,199,738 Jackson (Mississippi) 

Jacksonville (Florida). 9,180 1 Nashville.• (Tennessee) • 1,940 eo"on rogion. ._________________________________ 807 5 

Augusta (Maine)_________________________ 1 1 

Boston__ • (MassachuseUs).. 307 3 Burlington. • (Vermon!) • • 

Hartford. (Connectico!)_____________________ 215 Portsmouth (New Hampshire) •• _ 281 . __ .____ __ 

Pr viden,ce.. (Rhode Island)__________________ • 4594 ------~-I.-~----- Chi ..'0' g on • •. _ _ _ .. ••• __ • •••

Chicago (See (b) below)_________________ 

Detroit _ _ (Michigan). ••• _ 

Milwaukee_ ___ ...__ (Wisconsin) ._. • 

Springfield .... _._ (See (b) below) •• 

CI"clnn II ,."on	 • C,nclnnati • __ (See (I) below)
 

Cleveland (See (I) below)
 

Indianapolis___ • (Indiana)_________________________
 

Louisville .... (Kentucky) •
 

Parkersburg (West Virginia) •
 

Richmond (Vrrginia) ._____
 

DaIlAib':.i'~:'Qi;e~~~ :::::::-(N...w-Mexic-o)~:~::::::::::::::::: Austin (See (h) below)___________________ 

Dallas_. __._.__ •• (See (h) below) .______ Little Rock (Arkansas) 

~~~h~~e:~~iy:::::::: ~6~~~~~~ak~:::::::::::=:::~:::

New York Cily ,..ron _ Albany (See (0) below) ___ 

Brooldyn. (See (e) below) 

Buffalo (Sec (e) below) ___ 

Manllattan (See (e) below). 

Syr.cuse (Sec (e) below)_ 

Omaha region 

Aberdeen. (Soulh Dakota)
 

Cheyenne __ (Wyoming).
 

Denv r (Colorado)
 

Des MOines.. (Iowa). __
 

Fargo (Nollh Dakola).
 

Konsas C,ty ___ . (See (e) below)
 

Omaha._ (Nebraska)
 

SI. Louis (See (e) below).
 

SI. PauL_
 (Mlllnesota) __ 

Wichita _ (Kallsas) - Phlladolphla ,.,glon.. 

B.llimore (il1aryland and D.C.).. 

Camden .. (See (d) below)... ___ 

Newark .. (See (d) below) ___ 

Philadelphia __ (See (g) below).. _______ •. 

Pittsburgh (See (g) below) __ . 

Scranton (See (g) below). -­ Wilmington _ (Delaware) 

san Fr.ncisco reglon 

Anchorage __ (Alaska)
 

Boise (Idaho)_
 

Helena_ (Montana) ----_....
 Honolulu __ (Hawaii)
 

Los Angeles. ____ (See (a) below)
 

Phoenix. (Arizona)
 - Portland (Oregon) Reno ____ . ___ (Nevada) __ 

Salt Lake C,ty_ (Utah). 

San Francisco. (See (a) below).. 

Seattle_ (Washington) _ 

Office ot Intem.tia at Operations 

Puerto R,co 

Other 

(a) California • 

(b) Illinois _ 

(c) Missouri __ .. 

(d) New Jersey . 

(e) New York (I) Ohio _ 

(g) Pennsylvania._ 

(II) Texas. 

1,139 

1,239') 

80 .______ __ _ 1 735,003 721,0.46 

136 • 

2,431 

749 362,756 - 358,504­

1,104 ') 

367,828 364,542 

~~~ ~? 127 (I) • 

.__~~~~~ '? 

61& 

49 

54 

3 

542 

29 

1,093 (.) 

75 

72 

()

(') 

(') 

(') 

(.) 

i,092 I 

(.) 

(') 

27,191 

49 

1,751 

1,219 

11,296 17 

12.859 

G68 

3 

644 

21 

138 

(') 

14 

48 

1 

C) 

72 

2 

2,128 

2,128 

3 

Manufacturedl 

Cigars' 13 tobacco' Other 11 

(28) (29) (30) 

49,604 11,280 694 

n,273 6,717 650 584 (.) .) 

1,452 (')

1,918 _ 

(I) 5,010 - 55( • __ 

9,178 (.) (.) 140 1,707 93 792 U (.) 

_ 

294 10 (.) .. • _ 

214 1 _ 281 •• •• _ 

52 ('1),902 ----(-.)----­

30 1,109 _ 466 772 (') 60 21 ._. 1 (.) __ 

5, &01 G,356 •• 

115 21 .. 

2,009 421 __ 

749 (') _ 1,220488 3,004 _ 896 _ 1,272 2,014 __ 

~~~~ .'!. :::::::::::: 127 (") __ (") • _ ..	 _ 

._~:~~~ :::::::::::: :::::::::::: 

478
 

48 (.) 1202 I
 49
 

3 1 (')
 

378 90 ,
 28 '
 

16
 

(") 

1,077 

( ) 

(') (.) 

(.) 

(.) 

15 1.077 

(') 

1,048 40 

46
 

1,751
 

"315
 

25. 435 

864 40 10,469 183
 

16
 1 (')

12,838 

85 47 (')

14
 

28
 18 

1 (.) 

(') 

42 (') ':,1::': ... 2,125
 

2,125
 

Totals for States not shown above 

12l 6 70 45 _.. 14,930 7,981 6, 923

1,140 (.) 31 1,109 -­ - - 10,773 1,268 8, 442

1,092 (') 15 1,077 -­ -­ 2,005 1,227 778 

2,970 - .. 2,066 864 40 2,413 1,624 788 

676 75 478 120 3 63,386 1,460 61, 715

2,566 

24, 172 1 127 

665 

2.124 

23,323 

127 

442 

184 

(') -­

--­ (» 

------­

9,792 

5,350 

5,024 

1,555 

1,126 

1,733 \ 

699 

223 

290 

2, 

4, 

3, 

:.... ---------''---- FootnGtes on p. 124. 

Stamp taxes on documents, other instrum.nts, and 

Total 

(31) 

149,350 

7,113 

1,104 

663 

358 

958 

335 

2,715 

980 

S.U3 

200 

3,895 

86 1,171 

183 

307 15,342 

10,652 

2,506 

2,063 121 

12,985 

8,412 

1,380 

1,037 

694 

268 

1,194 

7,765 

306 

1,750 

3,274 

327 1,256 

853 

G1	 386 

183 

441 

619 6\9 

61,899 1 1,460 60,332 \07 

7,512 240 I 4,206 2,884 210 1 422 

playing cards 

Issues and transfers 01 

bonds of indebtedness I or capital stock. foreign
 

insurance policies, and Playing
 

deeds of conveyance cards, silver
 

bullion
 

transfers
 Sales by
 Sales by 

postmasters directors 

(32) (33) (34) 

1113,746 8,060 

>,&18 1,493 , 275 2 .,., '" 519 

827 145 ;:l -----·F)--­ 287 70 .:: 897 61 ------._--. 225 110 -----(0) -- - "" 2,165 550 697 282 (.)
 

2,120
 3. T15
 188
 12 

934 .-.-- ----7 .., 2,954
 

68
 18	 -----(;;---- ""'" 667 503 

115 67 

160 .----C")---­ 147
 

3,055
 10,452 1,136

I. 268 8,321 1,062 965 1,540 I 822 469 772 

121 -------~---

1,972 3,475 5,539 

1,555 1,319 5,538 

1,380 ~/) 728 309 ') 

433 261 ----------­ 234 ---.-------­ 1,021 172
 

3,498
 

34 

4,267 ---y;---­ 169 137 

1,750 (.) 

1,541 (.) 

86 ------Cm I .) 

-------.---­ ~, S08

245 (I ('1

1,4&0 &1.715 ' 211 84 99 -- \ 439 I 5 (.) 

138 127 Il 132 110 22 1,228 605 623 713 693 20 120 106 14 494 494 604 336 267 

,511 1,227 284 2,001 560 1,020 

572 130 

10,070 

441 J,700 6,3&9 

1,733 926 806 244 244 2,168 1,624 544 

3,412 3,412 

1,792 I. 126 666 145 145 575 24 552 19,333 9,916 9,375 

48 48 

193 169 24 

215 199 15 

320 15 299 5,072 5,046 769 236 526 838 562 276 276 164 1J2 ~14 94 221 

9,858 7.981 1,877 

1,430 , 449 979 

(.)
 

(.)
 

(') 

(") 

421 (.) 

~')') 

(') 

n ,.... 

, 

"­ 41 

----6--

'"' 6 ...... 25

7 'J 

(') 

"-< 

C'> 1 '" 

26 

1,062 

I ( ) 

211 

5,539 (.) 

(') ...... 

0 

<:;) 
-----

--

(Delaware) ... .. • • _ __ 

_ (Alaska) . __ • • 

(Idaho). _ 

(Monlana) _ 

• (Hawaii) 

(See (a) beloW 

. .. (Arizona) .. 

_ (Oregon)_. 

Nevada) 

Utah) 

(Sea a) below 

(Wa!hlngton) 

_ 

Table 1,---lnternaI revenue c:ollections by sourc:es ond by internol revenue regions, distric:lS, States, and other oreas-Continued 

[In thousands of dollars. See table 3, p. 120, for tax rates and further breakdown of naliollal tolals by sources] 

o Manufacturers' excise taxes 

1------,----.----.-­

Internal revenue regions, distric(s, States, anq other areas 1 

(States represented by Single distflcts indicated in parentheses; Lubricating totals for other States shown at bottom of lable) Total Gasoline oil, etc. 

(35) (36) (37) 

United Statu. tOUJ 4,896.801 2,310,303 

Atlanta region . 

Atlanta. 

Birmingham 

Columbia •• 

Greensboro 

Jackson ... 

Jacksonville 

Nashville. 

8on;~g~~~1~"~ Boston 

Burlington 

Hartford. 

Portsmouth . 

Providence. 

Chl~DrOlllo"

Chtcago_ 

DelrOit 

Milwaukee__ _. 

Springfield .• 

C'ncinlUllU r-saIDn __ 

InClltnafl 

Cleveland. 

Indianapolis. .. 

Louisville ... Parkersburg_. 

Richmond. 

Dalla, reg ian 

Albuquerque 

Austin. 

Oallas ...' 

Little Rock._ 

New Orleans.. • 

Oklahoma City... 

H... YDrk Clt~ reglDn 

Albany._•. _... 

Brooklyn. ._... 

Buff;;lo 

Manhattan. 

Syracuse 

Om.". region Aberdeen __
 

Cheyenne..
 Denver _
 

Des ~oines __ .
 

Fargo ...
 

Kansas City .
 

Omaha.
 

St. Louis
 

51. Paul. _' _. Wichila • 

PhlJad.lphfa region 

Baltlmor. _ 

Camden. 

Newark 

Philadelphia __ •. 

Pittsburgh 

Scranton. __ 

Wllmin~ton.. San Frand.co re:gloft Anchorage • 

Boise_ 

Helena. .. 

Honolulu. _ 

Los Angeles 

Phoenix._.. 

Portland. 

Reno_. 

Salt Lake CitY. 

San Francisco__ 

Seallie.. _ 

Offlee 01 Inle.rnaUonal OperaUon" Puerto RJCO • 

Other. 

(a) Calrfornia_._. __ ••. ... . (b) Illinois __ ... _ .•< 

(c) Missouri_. - -~---------------

(d) New Jersey ------- ---.._--­ (e) New York .- - .. (I) Ohio. ------.. -_.­ (g) Pennsylvania __ --- -.....--- --­ (h) Texas . 

Footnotes on p. 124. 

1',296 

-_. __...--. ----...... (Georgia) 0 _ 

(Alabama)_ • ... _ (South Carolrna) • __ 

(North Carolina) __ ..__ .. _ 

(MisslSsippl) • • . 

(Florida) ••_ _•• _ (Tennessee) • _ .. _ 

._(M~-irle) ~: -:~--~:: _ 

(Ma"achusel\s)___ • _ (Vermo 1).------- • _ 

(Connechwtj __ _0 • __ ._. 

(New Hampshire) _ • .._ 

(Rhode Island) • ""_ 

(See(b) below) : •• --.-=_
 (Michigan) ._ __. __._. 

(Wisconsin) ___ •• • _ 

_ (See (b) below)______ _ _ 

(See(f)b;'o\';i .~ __ • -'":--~= (See (f) below) __ _ __ .• _ 

(indiana).. __••• • _ 

(Kentucky)_ _ __ ._••_ _ (West Vrrginia) _ __ __ _ _ 

(Virginia) __ __ 

(New MeXICO) __ _ 

(See (h) below).. __ 

(See (h) below). __ 

(Arkansas)__ 

(Louisiana)_ 

(Oklahoma) 

... 

• __ • (See (e) below) __ ._ 

(See (e) below). __ 

(Maryland and D.C.) __ 

(See (oj below) _
 

(See (0) below)_.
 

(See (e) belol'/) ..• ,_'.0.._. _.••_
 

(South Dakota)_ :-- _- _.=_ . _
 (Wyoming) .. __ _ •••_ .•••_ .••• 1
 (Colorado)._ ___ . _ 

(Iowa) •• _.. ......_.... 

( orlh Dakota)._ _ _. 

(See (c) beIOw)_. _ 

(Nebraska)_. " _ (See (c) below) • • __ . __
 

_ (Minnesota)
 

. (Kansas). __
 

(See (d) below). __ • ..... 

(~ee (d) bela,!,) _ (See (g) bclow) • __ • _. _ 

_ (Sec (g) below) ._ • __ •__• _ 

(See (g) below)_... 0. _. 

33,788 6.4Il SO 924,900 m 733 26,820 

34,251 4,743 I 

159,358 11.1.616 1,326

2,350 2.268 4 7, 117 7, 108 2 15,192 6,480 102 

'21,810 8.9/8 109 1,298 1,216 15 22. 015 18,808 403 4,741 3,833 I 6 

28, 720 21, 102 466 42,744 29, 789 816 13,371 12, 034 224 529,448 389,768 13,992 

69,832 55,996 1,060 

4,939 3,860 49 69, Z21 10,731 661 

16 ,80 138,595 3,909 

211,595 J77,404 8, 12 

3,591 2,888 389 2 (")

308,468 259,652 7.818 53 32 1,486 1,307 (')

143 93 

84 

3,288 

22 

365 4 256 42 , ~l

183,296 153,503 8,723 4,212 3.624 7,75 

198 47 91 4 6 48 2,429 (.) 7,200 17 146 66 28 17 8 1 (") 1 6,034 4,779 239 3 929 105, 462 94. 170 3,530 475 53 3,323

2,127 38 109 376 8]'H 62 _ 5,701 62 ()

(") (') 52---------- n' -. - ....

62 ()

Tolals for States not shown ahove 

288,758 247,673 7,710 

358,804 215,161 6,124 

50,735 39,910 869 74.161 14,591 710 

I, 019, 349 731, 121 27, 079 

334,248 I 62,215 1,913 

385, 067 I 318,887 12,222 

169,945 156,719 3,536 

-------;- ----,----, 

Tires (wholly Motor vehicles, I Radio and or in part of chassis, television setS rubber), illner bodies, parts, phollographs, tubes, and and accessories components, tread rubber etc. 

(38) (39) (40) 

219,512 1,654,101 1048,989 

7,138 9.255 4,973 620 1,863 9 894 1,718 2 (.) I I 6 I I.800 (.)

5,554 321 14 1,658 124 55 1,714 4,832 

5,891 7,978 5,052 29 37. (') 

12 3,041 3,470 3 5,722 3,235 1,553 32 36 21 96 1,621 9 266 l,C~.850 60,539 21 43, 170 48,705 241 1,368,255 9,002 3 9,383 22 1 1,042 2 811 179,168 79,340 6,089 

4,782 5,653 129 174,365 46,054 167 10 25,614 2,833 8 949 2,959 3 152 (.) (.) 918 2 854 8,062 1,165 (.) 29 I I, 324 12 853 4,721 I, 040 (0) 26G 3 (C) 377 22 1, 3~4 28 

45,521 j 10,129 , .1.15,534 

(') 804 3 I 123 55, 8621 29, 997)

1,359 4,581 4. ~~~ I 5.539 I 3,576 

5, 86~ 2,138 BJ6 531 17.958 48,637 21 715 23,012 \ 2 026 I sr..957

1 /59 16,697 2.030 10, 020 .u.492 16,900 2.428 8,11Ii 4,C80

(0) 78 (0)

(0) 6 1 6, 083 2,403 (.) 114­ 6,788 90~ I (.) 

1,228 2.625 I, 174 (.) 37 29 (.) 1. 557 78 I, 071 98 1 508 30 171 7 521 4,589 195 762 1, 086 98 5,893 1,146 3, 07G 1,927

( ) 601 66 404 43 

15,21& 18.422 12,91.4 16, COC 62, 7321 10,102 413 1. 575 590 

425 24 96 507 272 75 5,761 

3,925 

46,589 4,650 55/ 1,607 

917 8.7 4 7,780 5.270 5,992 4.386 6,909 7,674

(') 7 207 

35 

483 7 (.) 60 

1,685 11,932 ',792 3.943 12,645 (.) I (.) (0)

~~ (.) 82 41 (.) .) 8 

1,676 12,253 4,687 3,677 11,082

22 44.212 51,516 14. 770 26.999 

521 6.146 273 1,833 I, 184 272 47,014 4,674 632 6,2£7

55,862 29. 997 45,527 10.129 119,634

179,147 51, 706 196 10,045 28,926

4,842 15,? /0 12,173 12,185 9 487

854 6,045 L 3 1,237 442

--:- --,- _ 

I Refrigerators, 

' freezers, ai r 

conditi8ners, l 

etc.; electric, Other JJ 

gas, and oil 

appliances 

('11) (42) 

2C9.UO 

5,~8 2,973 99 794 220 156 187 189 353 667 741 61 120 338 3,329 768 

5.151 23.379 89 

208 6,106 

50 

4, 91~ 16,186 

593 

24 354 

",C61 36,708 

12, 706 21,967 29.487 7,783 

5,203 1,925 

2, 065 5,033 

24,34C 31,829 

4.375 8.215 

5,670 20, lIt 2,522 2. 038 

11. 442 353 8 I 

327 511 

1,29G 1,079 

(0) 6 I, 098 159 139 283 

34 31 

21 103 4 498 

72,184 

9,502 

6,129 

6.240 

J4,279 

8,762 

10,660 

16,612 

69,334 

1,462 

24,950 

347 

37,851 

1,241 

3,482 

1, 141, 766 

331,631 

1.445,765 

37,197 

27,173 

476.899 

26,355 

307,893 

48.504 

85,114 

2,237 

6.795 

419.. 935 

3,291 

125,321 

44,624 

2,693 

29,784 

/14,221 

I, 1l19, 349 

3,188 ' 23,222 I 

n,4AO 351 6.048 70 3, l32 6 5,61 I 66 1l,427 30 2,086 

8,353 53 5,7 3 t32 21.786 97 1,304 

12,023 90 293 

6 6, ~~~ 1,372 

266,203 6,739 

198, 983 6, 080 30,540 456 20,502 159 

16,178 44 

151,572 C, SSG 

3,135 58 

59,080 1,847 

15,240 246 

67, 178 2,226 

J,952 120 4,986 51 396,1C6 11,331 

3,256 .) 

119, 322 3, 345 37,397 191 

2,317 41 

28, 123 1, 137 

205,730 6,617 731.121 27,019 

U~~ ...-- -2081 
------------------

__ __ __ 

--

--

Table 1.-lnternal revenue collections by sources and by internal revenue regions, districts, States, and ather areas-Continued 

/In lhousands of dollars. See table 3, p. 120, for tax rates and further breakdown of nalional totals by sourcesl 

Retailers' excise taxes 

Internal revenue regions, districts, States, and other areas' 

(States represented by single districts indicated in parentheses; Total Luggage, Jewelry, Furs 

lotals for other Slates shown at bottom of table) etc. etc. 

(43) (44) (45) (46) 

United States, total _ 397.649 68.182 1 1_68_._49_8 

Atlanta region 

Atlanta. 

Birmingham .. 

Columbia 

Greellsboro __ 

Jackson "­

Jacksonville. 

Nashville. 

Bollon roglon _ Augusta ..
 

Boston••
 Bu rJington __
 

Hartford ..
 

Portsmouth
 

Providence.
 Ch'cago rt!Iion _ 

Chicago .•...•• 

DelroiL 

Milwaukee. 

Sprrngfield. 

Cincinnati .-egioR-_ 

CUlClOnati 

Cleveland •. 

Indianapolrs 

Louisville. 

Parkersburg .• 

Richmond 

0.11.. region •. 

AlouQuerQue
 

Austin
 

Dallas ..•.
 

Little Rock.
 

Ne'''' Orleans.
 Oklahoma City._ .. . (Oklahoma)...'_	 3.483 

He.. 01' Ctty rio,. _ lI4.2'7 n.us 1 883
 18 276 OSS I
 854
 Albany (See (e) below)•.• 7, 71-1
 1.627 2,960 Bronklyn (See (e) below).. 4.6.J5 773 2,042 8ulfalo (Soe (e) below) •. 

Mdllilattan (See (e) belolv) •. 74,028 14,947 21. 34~

5.988 1132 4,714 Sy,"cuse . _ (See (u) below) 

Om_h. 14,32& 7.227 14,442 region 716
 78
 349
 Aberdeen. (South Dakota) 445
 49
 228
 Cheyenne. (Wyoming) 

Denver. _ (Colorado) 2.884 351
 1.369

3,196 444
 1,673 Des Momes. (Iowa)... 641
 74
 329
 Fargo .• _ (North Dakota) 

4,391 662
 1,723 Kansas CIty•. (See (c) below). 

Omaha (Nebraska). 2,303 351
 1. 010

(Sec (c) below)_ 9.606 3.817 2.949 Sf. Louis 7,269 1,086 3.69'2 Sf. Paul. ­ (Minnesola) 

Wichita. _ (Kansas) ._ 2.577 315
 1, 119


37,772 6,133 16,838 Phll.delphla region. 

Baltimore 9,184 1.458 4.060 _ (Maryland and D.C.)•• 

Camden. . (See (d) below). _._ 2.225 324
 1.117

Newark. (See (d) below).• 7,020 1,046 2.977

Philadelphia 10.410 1.869 4.588 • (See (g) below) .. 

Pittsburgh (See (g) below)_ • 6.372 I. 033 2,839

Scranton (See (g) below). __ 2,041 345
 996


Wilmington 521
 59
 261
 .. . _ (Delaware). 

60.143 7.910 26,700

san :;~o~aS:: "9100 (Alaska). 286
 26 136


Boise.. 869
 99 399
 (Idaho) 

Helena. 759
 96 355
 (Montana) . 

Honolulu (Hawaii) 1,337 233 72£

Los Angeles (See (a) below).• 26,477 3.499 10,873

Phoenix (Arizolla). 2.087 258 1.016

Portland. _ (Oregon) 2,966 438 1.371

Reno ...••.. _••• _ (evada) 853 96 442


Sail Lake C,ty. 1,663 221 695
 (Uiah) __ 

San FranCISco (See (a) below). 17.876 2,326 8.304

Seattle. (Washington) 4.970 618
 2,387 (.) omce 1
 ( ) of tnte.m"AUon: Oper.tion.. 

Puelto RIcO .. •.... 1
 (.) (0) Other 

Totals for Stales not shown above 

(a) California. 44,353 5.825 19.178

31,946 6.697 13, III
 (b) Illinois .. _ 

(c) Missouri 13,996 4,478 4.672 . - .-----­ (d) New Jersey_ 9.244 1,369 4.094 - (e) New York •• 94.247 18.055 31,918

(I) Ohio ..­ 17.868 2,968 7.925

(g) Pennsylvania. .. 18,822 3,246 8.423

(h) Texas 19, 162
 2.597 10,658

Footnotes on p. 124. 

32.337 till 

__

(Georgia) 6.311 ~lli (Alabama). _ • 3,558 476 1.868 (South Carolina). _•. 2.004 310 893
 (North Carolina)__ • 5,028 748 2,394 

(MiSSISsippi) 1,633 277 719
 

(Florida) .• 9,186 1,464 4,396 

(Tennessee). _ 4.617 873 2,082

22.715 3.90S 10.115 (Maine) .. __ 142 502
 (Massachusetts) 12.147
 

973
 2,656 6,037 

• (Vermonl)....	 321
 47 190
 

(Connecticut). 6.512
 669 2.112
 _._ (New Hampshire) 634
 93 327
 

•__ (Rhode Island).•.	 1. 827
 297 947
 

52.317 ~~ ~~

__ . (See (h) tieiow5._. 29,107 6,327 I 1,724 

.. (Michigan) 14,424 2.344 5.778 (Wisconsin) .• _ 5,947 1,114 2.681 (See (0) below) __ £.839 369 1,387 

33.950 ~~ ~W

(See (I) lielow). 8,681 1,673 3,618 

(See (I) below). 9.187 1.295 4,306 

(Indiana) .•.. 6.610 874 3.636 (Kentucky) 2.773 416 I. 424
 

(West Virginia).
 1,879 263 921
 (Virginia). 4.820 666 2,336
 

29.840 ~= ~m (New MeXICO). _ I, 115 I 114 520
 (See (h) below) 8.523 . 1,249 4,273
 

(See (h) below) 10.638 1.348 6.386
 (Arkansas) 1,652 265 758
 

(Louisiana) 4,427 \
 m UM 

29_.22~
 

~m
 160
 

70
 

237
 

80
 

310
 

259
 

1.540
 

73
 

948
 

15
 

387
 

28
 

89
 

~~

3,288 

1.244
 

586
 

121
 

~=

506
 

657
 

338
 

144
 

108
 

262
 

Toilet 

preparations 

(47) 

MiscelianeolJs excise taxes 

Adll/ISSlOns 

Tolal
 Theaters,
 

concerts, 

athletic 

contests, 

etc_ II> 

(48) (49) 

1 1_31_._7_43_1_1:.....4_9_7.:....S_~_1~91

Roof 

gardens, 

cabarels. 

elc. 

(50) 

3_3_.6

Club dues 

and initIa­ tion fees 

(51) 

64.357 

1 , 6.027 ~m 750
 .....

..... 105
 653 55
 339
 

79
 t,094 52
 309
 1,879 1,857

138
 1,025

1.479 4.116

113
 146


825
 I. 845
 

28
 78


361
 I. 620


19
 108
 

133
 320


~~ '.601.

~ill 1,054
 731
 

1,648
 

556
 

3,016
 

1,402
 

7.156
 

256
 

2,806
 

69
 

3.344
 

186
 

494
 

~=

7,767
 

5,058
 

1,565
 

962
 

~~

2.883 

2.929 

1,762
 

789
 

586
 

1,556 

1~

' 33/

371
 

564
 

71
 

f~~ I
 

7,871 , 

571
 171
 I


396
 

6,	 ~17
 

217
 

2,435
 

31
 

12
 

287
 

177
 

32
 

285
 

147
 

808
 

550
 

106
 

3 t 453
 

779
 

181
 

779
 

1,161
 

375
 

133
 

45
 3,no
 

20
 

19
 

46
 

9
 2,007
 

61
 

114
 

43
 

66
 

1.126
 

259
 

-_. ­

---~

3, 1331
 3.410 

1,092
 

960
 

7, 1.163 871 I


1,669
 

936
 

~m

449
 2.630 

2.340
 558
 I:m 

36_ 403
 

582
 

2.556 

1,424 

31.217
 624
 

10.224
 

259
 

156
 

877
 

1,201
 

205
 

1.721
 

795
 

2.032 

1.941 

1,036
 

.11.348
 

2.887 

603
 

2,218
 

2.792 

2.125
 

567
 

156
 

.763
 

104
 

353
 

261
 

373
 

10.098
 752
 

1.044
 

272
 

680
 6,119 

1.706 

(') 

(.) 

16,217 

8.729 

3,754 

2.821 

36,403 

5,813 

5.484 

4.971 

~lli
 4,026
 

2,869
 

II, 786
 

1,802
 

20,055
 

5,598
 

73.391
 

1,091
 

49,398
 

658
 

20,024
 

700
 

1.519 

m~

108.670 

43,744 

18,837 

8,234 

~W

12.433 

5l,J73 

23.890 

12,941 

8, 597
 18, I 5
 

~~

2.442 

13, 167
 

22,972 I
 

3,095


lUM I
 

_.232 

4.248 

10,793 

6.902 

258.863 3.426 

21.9.492 

1.392 

1,295 

48.522 

6.173 

967
 28,521
 

33.842 

76,066
 

14,551
 

8, 165
 

164.907 

39,954 

4,147 

39.383 

64.976 

12.408
 

3,059
 

980
 243,OS4 

1,531 

1.338 

1.481 

4.900 

40,951 

2.600 

4.975 

11,535 

7,407 

156,306 

10.060 

3.628 

2.695
 

933
 

~=

120 I
 204
 

409
 

95
 

in I
 

12.821.
 

31
 

2.626 346
 

9,378
 

156
 

1..496
 

36
 

5
 

228
 

84
 

17
 

209
 

149
 

367
 

352
 

49
 4,765
 

1.426 

I.	 175
 

329
 

749
 

441
 

311
 

335
 

6.197
 21
 

27
 

18
 

66
 3.746
 

168
 

157
 

35
 

H4 

1.562
 

314
 

1.47 

--_.- - ­ 147
 

.=
 52
 

81
 

147
 

10
 

1,389 ti7 

1.~0

59
 1,218
 

4
 

243
 

174
 

292
 

~~

2.236
 

I, 130
 

445
 

90
 

~~

435
 

787
 

342
 

328
 

154
 

167
 

197.257 5,307

116.905 2,325

104,586 575


43. 53! 1,504

284,232 12,821

63,605 1. 222


80.443 1, 500


36,139 613


2.235 

I: 325
 

564
 

473
 

~~

500
 

909
 

596
 

408
 

109 I
 63
 

~m

189
 

276
 

335
 

108
 

51J I
 

4,337
 

339
 

561
 

166
 

2. 687
 

28~

2,659
 

42
 

81
 

659
 

140
 

61
 

296
 

191
 

256
 

80
 

129
 

3,646 

1.012
 

986
 

555
 

592
 

338
 

123
 

40
 

1.0.263
 

103
 

116
 

128
 

621
 

2.898
 317
 

492
 

2.931
 

51
 

2,210
 

395
 

5.108 

2,707
 

551
 

1.540 

4.337
 

409
 

1,053
 

611
 1. 1
 

4,073 

2.884
 

986
 

658
 

6.847 

1.231 

2.172 

I. 109
 

722
 

427
 

I. 186
 

6. S17
 

206
 2.080 

2.	 134
 

301
 

925
 

871
 

9.U9
 

61
 

2.001
 

t,l72
 

4.&59
 478
 

5,361
 

73
 

36
 

648
 

627
 

45
 

612
 

341
 

1,028
 

I, 199
 

751


•. '19 1.851
 

597
 

1.649 

2,151 

1.493
 

392
 

286
 9,340 

t 

65
 

102
 

157
 

4 065
 

386
 

522
 

65
 

314
 

2.683
 

980
 

6.748 

4,731 

1,641 

2,245 

9.129 

3.403
 

4,036
 

4 214
 

'J:l 

<'I­

<'I­ "". 

<'I­

., 

'" "'" 

...... 

(l> 

'" 
--

--- -- --

- -

_____ 

--- --- -

------ --

-- --- - ---

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

-----

---

Table 1.-lnternal revenue collections by sources and by internal revenue regions, districb, States, and other areas--Continued 

[In thousands of dollars. See tabl 3, p. 120, for falrales and further breakdown of national totals by sourtesl 

Misc lIaneous excise taxes-Conlinued 

Internal revenue regions, districts, Stales. and a her areas I 

(Stales represented by sinRle districts indicaled in parentheses; 

totals for olher Stales shown al bottom 01 table) 

long is~

nce telephone 

telegraph, 

cable. 

radio, etc. 

Wire mileage service, wire 

and equip­ ment service 

locallele· 

phone service 

Transportalion of 

persons 

Use of safe 

deposit 

boxes 

Coconut and 

other vegetable oils 

processed 17 

Sugar 

Diesel and 

special motor fuels 

UnltM States, bUI. • 

(52) 

UI,US 

(53) 

2$,419 

(54) 

4a,4OS I 

(55) 

264.262 

I (56) 

6.511 I 

(57) 

19 

(58) 

n,l18 

(59) 

",156 

AtJAntanglon._____ __ • _ Atlanta (Georgia) • • _ 

Birmingham • . !Alabama)__ _ _ Columbia South Carolina). __ • _. __ 

Greensboro. . North Carolina).. • • Jackson .____ Mississippi) __ _ _ 

Jacksonville.._ Florida) _ 

Nash,ille _. ~__ Tennessee)____ ._. __ BOlton ngJon ••__ . _ 

Augus . !Maine) ••__ ••• _ Boston_. ..__ Massachusetts _ Burlingfon Vermont) ••• _ 

Hartford_______ _ _ Connecticut) • 

Portsmouth _.____ New Hampshire)_. _, _.... __ Provi ence_ •• (Rhode Island) • _ ChICOlgo-roglon . _ 

ChlcaRo ~see (b) below)________ _ __ __ Oetroil.______________ Michigan>­ _ Milwaukee Wisconsin) • • 

Springfield Se (b bolow) _ Cfnclnnall ....lon .. .... 

Cincinnati ----­ ----- lsee (I) belowl­ _ Cleveland • See (I) below) _ 

Indianapolis_________ Indiana). _ _. _ louisville • Kentucky).c __ Parkersburg West Vllgln,a) _ Richmond ..__ (Virginia). _ Dall.. nglon _ 

Albuquerque. (New Mexico). __ Austin Isee (h) below) _ Oallas __ . See (h) below) • little Rock_ .. Arkansas) _ 

Ne Orleans_ __ Louisiana) • 

Oklahoma City .. Oklahoma). _ .... Ycnil City _Ion _ 

Albany (See (e) below)._. _ Brooklyn. (See (e) below).... _ 

!G,759 

30,554 

513 

282 

2,113 

61 

2,615 

620 

18,976 

118 

13,520 

64 

5,227 

46 

(0) 

32.459 

16,609 

9,259 

4,737 

1.855 

27,307 

2,948 

11,697 

6,211 

952 

1,569 

3, 30 

4,301 

106 

453 

3,019 

269 

70 

283 

S5,NI 

599 

22 

I,m 

878 

76 

26 

33 

5 

169 

47 

1,2U 

293 

12 

859 

8 

29 2.360 

1,134 

868 

320 

38 

1,381 

148 

320 

236 

26 

180 

472 

301 

13 

96 

108 

11 

19 

58 

10,301 

36 

4 

50,436 

41, 54 

394 

369 

3,964 

80 

3,184 

791 29.757 122 22,413 

52 

7,123 44 

3 

63,886 

31,258 

21, 025 

8,897 

2,705 

.',063 

4,714 

19,830 

9,311 

1,591 

3,369 

7,248 

.,350 

7 

363 

3,153 

326 

159 

263 n.a38 614 8 

20,171 

I ,065 

430 

83 

1,998 7 6,333 

256 

7,664 

60 

3,957 

156 

3,292 

37 

161 43.641 

42,585 

7ll 

228 

125 

17,943 

240 

8,488 

846 

4,646 

I, 032 

2,690 

12t 059 

1 I 1,560 

8,633 

363 

976 

396 

69,490 

526 

3,996 

4" n 4,161 

73 4,127 

63 ._. ------- -----_. 24 -----·r----­ ----------­ 59 -------­ --­ 26 -----.---­ 177 -­ -­ ------­ ----------41­

62 --------~--- -------------­ «0 -~.. -----­ 2.ns 28 -----------­ ------­ 234 -._-_.-­ 2, ris­ 12 ----------- --­ 110 .----~---- --------­ 0 ---------­ -_.. _---­ 36 -----------­ ----­ 921 1 1,297 

430 1 8 

243 (O~ 1,166 

138 (0 24 09 .-­ ----------­ 639 IS US 110 83 .._'-----145­ 198 2 159 -----------­ --.----------­ 51 ---­ --~-- -------. 

.~ ----------­ --------­ - -_.(")----­ ,-----­ ill .u,643 

20 ---------­ ---------­ - 127 ---------­ 3,066 

125 (oJ 

34 .........·····1.....",..... 59 ______________ 10,577 

68 _w _________________________ 

1,143 1 31,691 

68 ------{of----- :::::::::::::: 203 

1,035 

803 

886 

697 

1,008 

591 

I 28 

921 

l,nO 

154 

87 

156 

397 

83 

304 

7,301 

4,098 

1,501 

I, 038 

670 

10, on 

675 

3, 15 

1.943 

1.967 

454 

1,373 

11,134 

1,321 

3, 025 

2,841 

657 

926 

3, 070 

U,529 

352 

226 

Blinalo (S~e ~e) bel \"1 193 76 M.nll.ttloll 1, 1 (See e) ueluw 57,892 10,179 

Svracuse ._ (See (e) bOlnw) 343 Omah.. req,on 54,'79 

Aberdeen. (Soulh Dakota) 116 CI1~yenne. (Wyoming) 34 Denver _ (Colorado). 10,632 

Des MOines (Iol'la) 1,152

Fargo" _ (North Dakota). 126 

Kansas City (See (c) below) 257 

Omaha	 _ (Neb/aska)_ - -.----- 12.709

St. louls __ . (See (c) belnw). 27.924 

St. Paul _ (Minnesota). 757 

Wichita (Kansas) . 973 

Philadelphia region	 34,900 ---------- Baltlmore_ (Maryland and D.C.) 6.471 

Camden. (See (d) below) 22

Newark. (See (d) below) 13,610

Philadelphia _____ (See (g) below) 13.326

Pilt'burgh (See (g) below) 1,055 

cranton ____ (See (g) belol'l)_. 412 Wilmmgton_ (Delaware) 3 SJln FnnclJ"co regfon 54,041

Anchorage (Alaska) 366 BOlS2 _ (Idaho) 68 

Helena (Montana)_ 120 

Hono!ulu (Hawaii) 559

los An eles . (See (a) below)~~. 7,633

Phoenl, __ ( raona)_ 109 

Portlan ~oregon) 379

Reno Nevada)_ 260 

Sail lake C,ly (Ut"h). ___ 104

San Fran isco _ (S (a) beloW) 42,939 

Seattlo (Washington). 1,509 OIflC$ or Intematlon.1 Operatlonl __ C")

Puerto Rico_ w _______________ Other 

12 5, all 

34 

3 

837 

67 

25 

2.455 

1,516 

33 

40 

1,183 

274 I 

200 

I, III 

292 4 (0) 

1,727 24 

12 

11 

30 

129 

24 

17 

7 

71,929 10.130 

~. 4~~ I 2.010 1,098

762 

762 

--_._---- --­

107 I 

61l> 

69. 

55 I n 1 

12231" 60 _ -(;)-­ 120 

18 

76 (0) 

64 

107 (.) 

125 

87 

818 1 0) 

72 

117 (0) 

208 (.) 

245 (.)

171 (0) 

55 

20 

1,040 (0) 

5 ------- -----­ 23 I 29 (.)
 

17
 

236
 (.) 

35 

79 0) 

12 

20 

467 ----- oj-­ 118 

- _____w __ 

2,328 

6 48 

408 

72,740 

207 

22 15.238 

1,468 

259 

337 

13.370 

39,643 

1\ 106 

1. 090 

58,842 

10,830 

---- -~--

17,709 

27.849 

2, 007 

447 

(') 

5,435 

298 

5 

108 

I. 648 

8,236 

32 

515 

594 

61 

120 

1.4	 0114 

764 46.6.4 87 

16 

5.667 

62 

16 

24,858 

2,632­

2,782 

7.3 3 

3,1 0 

24,724 

12,606 

406 

1.677 

9,428 

219 

319 

70 

n,lS7 

496 

~~ 1,411 

6.915 

109 

286 

40 

53 

:31: 61l8'1 

12,121 \ 

12. J90 1 

331 (.) I 

_____~o)4~:81

4, b48 

13,11' 

(") 

53 

20 I 

12,732

(.) 

2,695 

2,695 '''I 

344 

12,345 

26? 

',iii9

31 ) 

791 

1.200 

1,340 

252 

809 

1,152 

967 

1. 818 

1. 022 11 003 

1,489 

241 1. 797 

2,172 

4.800 

433 

71 

17,481 

15 

534 

536 

71 

4.677 

1.0-17 

l. DO 

575 

865 

7,260 

/99 

Totals for States not shown abo'e 

- ""-" 

1,542 165 (.) 1 (a) Calilornia __ 50,571 17. 045 703 12,7321 II.m 80. (b) III'nois ____ 18,463 1,172 33,963 42,709 539 8 4.768 - - ..­ (0) Mlssourl __. 28.181 1,541 39.979 27.640 183 r) 331 I. 775

I 

(d) New Jersey 13,632 201 17.709 2, 083 280 0) 2 039

<e) New York 55. 048 10.307 71,838 69.490 I, 043 1 31,698 13,529

468 24, 544 8,728 307 145 4. ?90 . (f) Ohio._ 14,64 85

(gl Pennsylvania 14,794 1. 408 30,304 9,966 471 648 7 405

(h) Texas ___ (0 4, 1 3,472 205 3,515 10,193 252 3, 066 5.866 ~-~--

I 

;.... 

<:: 

<-< """ 

"'­

<::> 

.,... 

'/j

:::­

--. 

, 

'::3 

;::-> 

::-­

"'­

Footnotes on p. 124. 
- -- -- -

--

-- -

-- --

--

----------

Table 1.-lhtemal revenue collections by sources and by intemal revenue regions, dislrids, States, and ather areas-Continued 

lin thousands of dollars. See table 3, p. 120, for tax rates and further breakdown of nalloual totals by sources' 

MIscellaneous excise taxes.-Continued 

Internal revenue regions, districts, States. and other areas 1 

(States represented by single distflCts indicated in parenn,.ses; totals for other States shown al bottom of table) 

UnUed States, tO$.d 

Atla"t.. region __ 

Atlanta. (Georgia). 

Blrmlflgham (Alabama) ... Columbia (South Carollna)_. _ Greensboro (North Carolina). Jackson _ (MisSIssippI). __ Jacksonville. •• (Flonda) __ Nashville. (Tennessee) 

8o§ton region _ --.. Au.usla. (Maine) .. __
 Boston (Massachusetts). _
 Burlington. (Vermont). "_ ...-._­ Hartford (Connectreut)....
 Portsmouth (New Hampshlre) .. _...._
 Providence. (Rhode Island).... __ e_
 

Chicago region - - ..-. Chicago (See (b) below) :__ :~
 Detroit (Michigan) '" __ _
 Milwaukee (Wisconsin) ___ . --'0'
 

Sprin~field (See (b) below) ._
 Cincinnati region 

Cincinnati. (See (f) below). __e _ •• 

Cleveland. (See (I) belolY)_.... _ e'_
 

Indianapolis. •. (Indiana)__
 Louisville ._ (Kentucky). __
 Parkersburg (West Virgl/lIa)
 -,0'" 

Richmond. (Virginia). Dall.:s r-eglon. __ 

Albuquerque... __ .(New Mexlco)­ Austin~ __ (See (h) below) ...
 Dallas ...' (See (h) below) .. , . - , ..
 lillie Rock._ (Arkansas)
 New Orleans_ .. (Louisiana)


Oklahoma City_ (Oklahoma)
 

N._ Ork City t:egio,1 

Albany __ (See (e) below).
 Brooklyn (See (e) below)
 

Narcotics ana ICOin-operated I Wagering taxes Unclassified marIhuana, amusement Bowling alleys, __• -:-__.__ Use tax on excise taxes I 

Including and gaming "001 tables, etc certain vehicles Other IS 

occupatIOnal deVices I Occupational Wagers taxes 

(60) (61) (62) (63) (64) (65) (66) (67) 

____1_,107 2J,9091---4-.-31-,-I----$4-I-I·---~~,6~8~2~:!~~~~~~45~.~5~7~5::~~~~~~1~,~U~6-1~==(=-=8~0-,-94-3) 67 2, 684 3!}9 30 481 4,204 205 73 II 

7 749 53 76 47 5 

6 60 

105 543 614 1 

22 35 (-I) 6 502 27 I 9 354 13 18 10 100 75 3 31 1,000 73 6 5 329 27 6 70 217 8 1 16 168 80 7 90 858 63 16 12 782 66 2 It7 617 25 (-2) 41 387 245 27 66 2,247 &1 46 3 26 19 1 5 214 10 (') 22 191 119 14 31 1,085 41 26 1 

10 7 96 6 60 (0) 8 --­ "'23 79 591 2 

5 I 

8 2 38 17 2 6 96 1 (.) 

3 29 23 I 1 183 3 II 119 1,628 747 50 875 6,948 1M ( -382)

29 452 233 19 627 2,606 38 (-120) 71 278 262 8 39 2, 938 35 (-271) II 326 134 1 1 837 50 3 8 572 ll7 22 208 567 18 6 U4 

14 2,750 249 516 90 U4 5 

2,319 

117 5,7'7 863 403 

9 U1 13 23 351 150 37 258 1,855 336 108 42 495 105 I 54 959 1,471 10 (-5) 

II 829 65 20 765 530 29 (-4) 

4 709 34 13 169 333 3 2 20 ll6 72 4 50 695 IS (-2) 

59 I, 566 324 66 827 5,037 195 (-24) 

3 37 14 2 11 177 2 (-6) 

18 134 104 9 196 1,435 20 (-62) 13 56 68 8 47 1,874 148 32 5 284 31 4 155 455 2 (-1) 

II 942 41 36 321 368 2 (-2) 

9 

285 I 113 484 

66 

362 

7 

38 

97 

82 

728 3,573 

21 

161 

14 

326 

li~ I I~~ It~ (.) I I gI m 47 

17 5 23 

---------- --,-----­

Buffalo . .. , ( ee (e) below)... , Manhattan (See e) below) .. , . Syracll\e __ (See (e) beloW) . 

Om.ha t09ton Aberdeen _ 'Sruth Dakota). __ . • Cheyenne __ Wyoming) 

Denver __ •• (Colorado). Des Moines_ (Iowa)_ 

Fargo. (North Dakota). Kansas City (See (c) below). 

Omaha. (Nebraska). . St. LOUis . (See (c) below), St. Paul .. (Minnesota). 

Wichita. . . (Kansas) .. Phlfodolphla '0910"' Balhmorf_ (Maryland and O,C.).. Camden __ (See (d) below) ..... Newark _ _ (See (d) below) .. _ 

PhiladelplHa. '_ (See (g) belol'l) ..._ 

Pittsburgh. (See (g) below)_._ Scranton (See (g) below) 

Wilmington. (Delaware) 

San francisco reg'o"_ Anchorage __ (Alaska) .. Boise. (I aho). . Helena. (Montana) .. Honolutu.. (Hawaii) Los All ales (See (a) beloW) 

Phoenix. (Amona). _ Portland _ (Oregon) .. Reno.. .' (Nevada). Salt Lake City (Utah). __ .••, . _" San Francisco__ (See (a) below)_. __ Seattle __ (Washington) _ .___ __, _ Office u1lntematlon.1 Ope-ration, _ _.. 

Puerto Rico. 

Other 

Undistributed: 

Deposit.ry receipts.. ... Transferred to Government of Guam 

Withheld taxes of Federal employees. __ ,. __ .,•• 

23 , 116 78 67 76 75 7 84 53 IJ 1.423 550 

2 182 22 I 69 9 7 184 42 7 112 98 2 23 22 6 109 58 9 85 61 33 312 60 10 llO 101 6 237 77 219 4,196 593 

16 2,818 126 5 165 55 ll3 121 107 66 541 132 13 376 128 4 162 34 1 14 11 121 8,791 581 (.) 168 II 3 37 24 2 108 23 6 145 18 56 251 193 4 135 20 7 380 38 1 5,842 6 4 175 27 26 236 129 11 1,313 91 . 

.e __ 

Totals for Stales not shown above 

2 23 502 26 5 9 15 l,!;~

27 181 5,349

2 27 219 5 12 197 1 25 693 

(.) 1 869 1 7 116 5 10 845 2 36 581 I 3 644 7 43 682 4 16 501 6 399 5,590 

2 69 814 2 10 408 6 13 1,285 8 152 1,773 4 109 883 3 13 335 2 33 90 3 1,452 6,859 

4 3 16 (.) 3 271 3 41 147 1 1 126 3 51 1. 793 1 26 185 4 21 970 8 597 60 7 83 234 6 40 2,446 145 585 612 (.) 21 

- ---- .. -_. .. ---. -- ­ (.) 21 

. . -- ---­ . ... -.-­_.- .-

,­

- ------ --1-­

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

(') 

--.. ---­

.--- .-­

S6 309 36 (-12) 21lS 7 1 1 2 (-1) 9 21 25 -16) 1 (-I) 

9 17 5 (-1)

93 (0)

41 (-10) 21 (-3) 155 261 32 -- .. 2 20 5 187 34 26 68 22 12 6 4 (.)

211 275 (.) 

I (-6) 2 2 1 1 70 317 I 1 8 (0)

I 1 5 4 99 ~-29) 23 -17 2
 

2
 -_ ..... 

(-81,639) -

.. '.- -­ . " 

(a) California., 82 ---- -'''-' (b) Iliinois •• ___ -_. 37 --. (c) Missuurl ~.

,­ 39 - - (d) New Jersey::: . . 118 (e) New York .- 285 .­____ .e_ (I) Ohio _ __ _ . 36 (g) Pennsylvania __ . ­ 83 (h) Texas e 31 -.-­

487 

1,024 

421 

286 

484 

600 

1,078 

190 

323 

350 

118 

162 

362 

241 

294 

172 

9 

41 

6 

8 

38 

43 

24 

17 

9\ 

834 

13 

23 

82 

376 

274 

243 

4,239 

3, 173 1. 490 

1,694 

3,573 

2,717 

2,991 

169 283 56 ( -114) 102 17 

7 206 167 326 345 121 114 54 

3,309 I 168 (-29)

Footnotes on p, 124, 

~--

-- -
- ----

li8 Annual epol't Statist/cal 'looles 10

Table i.-Intemal revenue collec1ions by sources and by quarters 

lin thousands or dollarsj 

Quarter endedSource of revenue I 

Sept. 30. 1960 Dec. 31. 1960 Mar. 31.1961 June 30. 1961 

(I) (2) (3) (4) 

Grand lotal, all sources 21.751.671 19.006,332 25,606,701 28.036.383 

Corporation income and profits taxes '_. 4,571,340 4.266.8541 6.776.907 6.149,838 

Illdividual income and employment laxas. total _~6~~ _~98. 15.446.814 18,344,109 

Income tax not withheld' ,_________________ 2,451. 691 736,221 3.880,427 6, 92~ 105 

Income ta~ withheld and old-age and disability • insurance'''' ._________ 11.059,086 10.316.562 11.092,596 11.273,596 

Railroad retirement"___ _ 152.905 143,896 137,937 136.074 Unemployment insu rance_ _.__.__________ 2,089 2, 080 335,853 5.335 

: = Eslate In. ._______________________ 370,011 438,959 505,290 431,221 

Gifllax__ ._.___._•••_. ._ ••_....... 4,594 4.029 17.068 145.220 

Excisetar.es.lola'-- --------.---or--------. 3,139.955 3,097,731 2.860.622 2.965,994 

Alcohol taxes. tolal_ __ •• ••• .••••••••••••• 786,795 898.109 685,527 84?,369 

Distilled spirits '-.. _. ••••• _._. 535,972 690,571 492,030 596,172 

Wines, cordials, etc.______________ 19.792 28,274 23,796 25,940 

Beer'. _ _ •••• __ ••••••••_._. 231,031 179,264 169,701 220.257 

Tobacco taxes, lolaL. __ •••••. __• • __ • 506,591 500,771 457,390 526,365 

Cigarelles '.... .••••__•• • 489,941 482.573 442,112 508,914 

Cigars I I' .. _ • ._ _ 12.233 13,791 10,884 12,696 

Other '_. _ _ _ __.__ _ 4.418 4,407 4,394 4.755 

Stamp texes en documents. other instruments. 

and playing cards, tolal. .. ._.. 34,880 33,043 39,874 41.554 

Issues alld transfers of bOllds of indebted­ ness or capital stock, foreign insurance
 

policies, alld deeds Ilf conveyance:
 Sales by postmasters_ _ 9,226 8,888 10,709 8,721 

Sales by directors ._ .. 23.965 22.168 26.909 30.703 Playing cards, silver bu Ilion transfers_ _ 1. 689 1, 987 2, 256 2, 129 

Manufacturers' excise laxes, total. _ 1,357.545 1,190,174 1.263,736 1,085,347 

Gasoflne _. • 618,844 634,281 586,847 530,331 

Lubricating all, etc. • _. .________ 20,198 19,741 16,842 17.515 

Tires (wholly or III pari of rubber), Inner 

tubes. and tread rubber. ~. ._. 82,624 69.780 64.033 63,135 

Motor vehicles chassis, bodies, paris. and 

accessories __ ._ _~__________ 505.457 331,176 463,937 353,538 

Radio and lelevlslon sets, phonographs. components, etc. _ _ .___ 32,077 41,41J 41,757 33,744 

Refrigerators. 'reezers. ait-cendilloners. . I 

etc.; electric, gas, and all appliances.. 36,726 29,171 23.761 30,746 Other " :_. .. 61, 619 64,614 66,560 56,338 

-===-~

footnotes on p. 124. 

Table i,-Infernal revenue collections by sources and by qUClrters-Continued 

/In thousands of dollarsl 

Quarter endedSource of revenue I Sept. 30. 1960 Dec. 31,1960 Mar. 31. 1961 June 30, 1961 

(1) (2) (3) (4) 

E~cise tlxes-Contlnued 

Retailers'excisetaxes,tota!.. __ ••_.".__ .___ 91,274 84,801 139,712 81,863 

Luggage, etc ._._. __ .________ 17,685 14.243 23,279 12,976 

Jewelry, etc _. _._______ _ 38.668 34.333 62.626 32.871 Furs . .... 3,970 5.386 12.878 6991 

Toilet preparations____ _ :__________ _ 30.950 30,839 40.929 29:024 

Miscellaneous excise taxes. lotal. . -- 408,503 358, 554\ 369.469 361.001 

Adm issions: 

Theaters. concerts. athletic contests. etc. 9,248 10,615 8,200 8,616 

Roofgardens.cabarets.etc."__________ 9.119 8.473 8,150 7.861 Club dues and iniliation fees. .___ 18.122 13,674 13.875 18,686 

Long-distance telephone. telegraph. cable.
 radio. etc.: wire mileage service, wire and
 equipment service _ _ _ __ 85,920 81. 690 88,841 87,444 

Local telephone service __ .. .. __ 122.155 111.743 132,228 117.282 

Transportation of persons_ __ 65.807 72. 004 66,264 60,187 

Use of safe deposilboxes • __ 1.602 1,546 1,414 2,019 

Coconul and other vegetable oits processed \, 53 21 12 3 Sugar ._.... . _ 23.169 27.611 20,715 20.323 

Diesel and special motor fuels ..• _._ 21,334 22,223 22,031 23,268 

Narcotics and marihuana, including occupa­ tional taxes... .. 258 198 178 474 

Coin-operated amusement and gam ing devices • . .. 13,987 1.432 1,104 7,386 

Bowling alleys. pool tables, etc .. __ 2,278 417 241 1. 381 

Vlagering laxes: Occupationa!. __ .. __ .. ._ _ __ 274 88 83 196 Wagers. • __ • ••• 1,642 1. 764 1. 783 1,493 

Use tax on certain vehicles ~___. 32,920 4.820 3,774 4.062 Otherl... • ._______ 613 233 579 321 

=-=----- = Unclassified excise taxes: Unapplied collections • -- (-722): 130 75" I 535 Undist~buted deposilary receipts '_. _._____ (-44.910) 32,151 (-95,840) 26.961 

Footnotes on p. 124. 
---

---

120 Annual Repor, 

Table 3.-lntemol revenue collections by sources, IIscal yean 1961 and 1960 

!In thousands of dollarsl 

Fiscal year 

Source of revenue 

1961 1960 

--­ -----------------------,, 94,401.086 

zl, 764, 940 

91,774,803 

22,179,414 

, 21,761,747 'a~

58,655, .52 

22,177,310 

2,104 

56, 104,300 

total J. ,, _____________1 

13,997,444 

43,741,840 

13,972,253 

41,184,008 

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

-----------­---­ ------I 

44,009, 141 (-267,301) 

570,812 

40,468,529 

715,479 

606.931 

581,348 594, 100 (-10,565) 12,801 

29 30 

Unemployment insurance, employers of 4 or more persons laxeO J percent on lax­


able portion of wages; credit allowed up to 90 percent of taY. for contributions to
 State unemployment funds	 _ 

---------------------. 345,356 341,108

1==== Estate tax, graduated rates from 3 percent on first $5,000 of net estate in excess of 

$60,000 exemption to 77 percent on portion over $10,000,000; credit allowed for Stale death taxes __ .	 _ 1, 745, 480 1, 439, 259 Gift la~, graduated rates from 2'" percenl on first $5,000 of nel gifts in excess of $30,000 

exemption to 57% percent on portion over $10,000,000; $3,000 annual exclusion for each donee	 • 170,912 187,089 Excise laxes, total.	 _ ------------------------1 12,064,302 11,864,741

'=0=:=== Alcohol taxes, 10taL	 __ 3,212,801 I 3,193,714

Distilled spirits laxes, totaL _ --------------------I 2,314,746 2,292,425 

Imported (collected by Customs), $10.50 per gallon Domestic, $10.50 per gallon ' .. 

Rectification, 30 cents per proof gallon , 

_ 

__ 

_ 

395,800 

1,879,653 

22,494 

378,673 

1,875,704 

22, 114 Occupational taxes: 

Nonbeverage manufacturers of spirits, $25, $50, $100 per year 95 84 Rectifiers: Less Ihan 20,000 gallons. $110 per year 

20,000 gallons or more, .220 per year 

_ 

__ 3 

20 5 20 Reta il dealers in liquor or medicinal spirils, $54 per year _ 14,757 13,607 Wholesale liquor dealers. $255 per yeaL .. Manufacturers of stills, $55 per year 

Seizu res, pena Ities, etc. 

__ 1 

• 

822 5 1,091 822 5 1,384 

Stills or worms manUfactured, $22 each______ 6 ------------------.'======7 

Wines, cordials, etc., taxes, 10IaL _ ----------------___ oj 803 100,369 97' 1 

Imporled (collected by Customs, rates same as domestic)_ .. • 6,804 6,708 Dam estic •	 _ 89,269 92,142 

(Slill wines 17 cents, 67 cents, $2.25 per gallon; sparkling wines,
 

$3.40; artificially carbonated wines, $2.40; liqueurs, cordials,
 

$1.92.)
 

Dccupalional taxes: Retail dealers in wines or in wines and beer, $54 per year__________ 1,567 1,366 Wholesale dealers in wines or in wines and beer, $255 per yeaf._____ 162 152 

Beer taxes, total. .__________________________________ 800,252 800,921 

._------------­ Imported (collected by Customs), $9 per barrel of 31 gallons . 3,746 3,599 

Domestic, $9 per barrel of 31 gallons ,__________ _ 791,682 792,634 

OccuG~~~~~Ltaxes:

500 Less barrels than 500 or barrels, more, $110 $55 per peryeaf. year - -------------------------1 . (.) 23 I (.) 24 Retail dealers in beer $24 per year .. 3,788 3,687 

Wholesale dealers in beer, $123 per year_________________________ 1,013 I 977 

Footnotes on p. 124. 

121 

Table 3.-lnternol revenue collections by sources, liscoI years 1961 and 1960-Continued 

St(ltistiral Tublel1 

[In Ihousands of dollars] 

Fiscal year 

Source of revenue 

1961 r-= Excise taxes-Conlinued 

fobacco taxes, total _. ---- - - _._..' _.. ------- - ---'" -._- -_.. , I QQI 111 1,931,504 -0---'-­

. -_....._..... ---I

Cigars,lolal. __ ------------------ -- ._-,--.-.- 1---

-,540 1,863,562

1,923,5323

4 

1,863,5573

1

49.604 50, 1f7 

- Large ciEars, classified by intended retail prices, total '_ ..... 1.49.377 49,850 

-- 1--­ _._._-­

56 Class 8 (Over 2~~ cents. not over 4 cents each), $3 per thousand _ 

Cia" A (Retailing at not over 2>§ cents each), $2.50 per thousand .. __ 951 

Class C (Over 4 cents, not over 6 cenls each), $4 per thousand _--._. 10,662 

Class 0 (Over 6 cents, not O'ler 8 cents each), $7 per thousand _ 7,652 

Class E(Over 8 cents, not over 15 cents each), $10 per thousand _ 22,850 

Class F (Over 15 cent" not over 20 cents each), $15 per thousand _ 3,793 

Class G(Over 20 cents each), $20 per thousand .. --_.- - - - - .-- --I 3,412

Small cigars, 75 cents per thousand .. __ ... I	 Il~

108 Prepayments ._.. --- ------------'"', .. ---~-----------------------I

50 

900 10,355 

8.303 

23,229 

3,424 

3,589 

95 

172 1:;;­

~=

Manufactured lI,l80 I 17,128 tobacco, La cents per pound • -- --- -.-.---------.. -­ Cigarette papers and tubes, papers y; cenl per 50; tubes 1 cent per 50 _ 693 , 

Court fines, penalties, and taxes on leaf tobacco sold or removed in violation 

or sec. 5731, Internal Revenue Code of 1954 .. . 1 -------------- ----I 

Stamp taxes on documents, other inslruments, and Dlavina0--' c"o, --, Inbl -- .-.-----------.I~~149,350 ,------1 

I,sues and transfers of bonds of indebledness or capilal slock, foreign insur­


ance policies, and deeds of conveyance: 21
 

37,544 

103, 746 PI ay~~~~a ~l,~rr;~!~7;er p~~~~=:~ ::::::::::::::::::::::::::~:: :::~:: =I 8,046 

Silver bullion transfers, 50 percent of profi!. .. _ 14 ---------------------,1====
 Manufacturers' excise taxes. total. . ._--------- ---------,
 4,896,802 

,----­ Gasoline:
 Gasoline, 3 cents per gallon to Sept. 30,1959; 4 cents per gallon thereafter
 2.370.072 

Floor stocks tax,	 1 cent per gallon on tax· paid stocks on hand as of Oct. I, 1959 "-------- -- -- -- -.. ---­ 231 

Lubricating oil, etc., 6 cents per galion; cutting oil, 3 cents. ----------­ 74,296

Tires (wholly or in part of rubber), inner tubes, and tread rubber:
 

Tires, highway Iype, 8 cents per pound; olher, 5 cenls per pound, except
 

laminated tires (other than type used on highway vehicles) 1 cenl per
 pound .. .......--- - ---------.- 250,959 

Inner tubes, 9 cents per pound_____________ -------. ---­ 14,560 

Tread 14.053 rubber, 3 cents per pound .. -----------------------.-----, 

Motor vehicles, chassis, bodies. parts, and accessories:
 

Passenger aulomobiles, chassis, bodies, etc., 10 percent .. - - - ­ 1,228,629 

Trucks and buses. chaSSIS, bodies, etc.. 10 percen!.. --------­ 236,659 

188,819 

Radio and television sets, phonographs, components, etc., 10 percent - . -. -­

Parts and accessories for automobiles. trucks, etc.. 8 percen!.. .. 148,989 

Refrigerators, freezers, air-conditioners, etc.; electric, gas, and oil appliances: 

Refrigerators, freezers, air-conditioners, etc" 5 percent except self- contained air·condit,oning units which are laxed at 10 percent • _ 55.920 

Electric. gas, and oil appliances, 5 percenl .. --­ 64,483 

Pistols and revolvers. 10 percenL .. .• ,.- ....- • 1,549 

Phonograph records, 10 percenL .. ._ - - - -------.---­ 22,823 Musical inslruments, 10 percen!. •.. · 18,113 

Sporting goods (other than fishing rods, creels, etc.), 10 percen!. -- 14,710 

Fishing rods, creels, etc., 10 percen!. -------- ----- ­ 6,253 

Blisiness and slore machines, 10 percent. ._ -- .. ------- 98,305 

Cameras. lenses, film, and projectors, 10 percent except projectors which are taxed al 5 percent. •• .------~------ 25,268 Eleclric light bulbs and tUbes, 10 percent. . • 32,924 

Firearms (other than pistols and revolvers), shells, and cartfldges, 11 percent. 14,985 

Mechanical pencils, pens, 10 percent; lighters 10 percent each lighter but not more than 10 percent of the price for which sold _ 9.035 

Matches, 2 cents per thousand; fancy wooden nr .- rnlnron -_._-~- ~,- dAm.;: ... _, -,,~ ,,1.;; r'pnh:. -_ ..._- --I 5,165

Footnoles on p. 124. 

flt:!7Sj 0 . '11 - J I 

691 

6 

139,231 

39,805 

91,329 

8,075 22 

4,735, 129 

2,014,403 

1, 460 

81,679 

272, 116 17,448 

14,902 

1,331,292 

271,938 

189,476 

169,451 

50, 034 

69,276 

1,986 

24,324 

18.023 

13,611 

5,836 

99.370 

26,234 

31,762 

15.590 

9,632 

5,287 
---

--

---

- --

II "'" 

II ~N i; - _ 

w 

$X> _J'I 

A ~~ "N W "0 

w 

~~~.~~

'" 

"" 

'" 

m 

1­

'" ." 

~.

Q 

'" 

Table 4.--1nfernal revenue collections by principal sourc«, flscal years 1940 through 1961 

[In thousands of dollars] 

Fiscal year ended June 30­

Total internal reven ue collections 

Income, profits, and employment taxes 

Estate and gift taxes Alcohol taxes' Tobacco taxes 

Manufacturers' 

excise taxes All other 

taxes 

Total 

Corporation 

income and 

profits taxes' 

Individual 

income and 

employment 

taxes :, II ~7

--. __ . --- ­ -

(1) (2) (3) (4) (5) (6) (7) (8) (9) 

94,401,086 80,420,392 21,764,940 58,655,452 1,916,392 3,212,801 1,991,117 4,896,802 1,963,582 

- -----.­ ----­ 91,774,803 78,283,714 22,179,414 56, 104,300 1,626,348 3, 193, 714 1, 931, 50~ 4,735, 129 2,004, 394 

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

79, 797,973 

79,978,476 

67,679,997 

67, 746, 260 

18,091,509 

20, 533, 316 

49,588,488 

47,212,944 

1,352,982 

1,410,925 

3,002,096 

2,946,461 

1,806,816 

1,734,021 

3,958, 789 

3,974, 135 1,997,292 2, 166,675 

. ---­ . - ...... .. --.... - 80, 171,971 68, 140,946 21,530,653 46,610,293 1,377,999 2,973, 195 1.674,050 3,761.925 2,243,856 

-­ ... - - -­ · .­ - -.. -.­ - ... - --­ 75, 112.649 66,288,692 

63,931. 948 56, 134,490 

21,298,522 

18,264, 720 

42,633,426 

37,869, 770 1,171,237 936,267 

2,920, 574 2, 742, 840 1,613,497 

1,571,213 

3,456,013 

2,885,016 

2.019,380 

2,018,866 

-­ - ... ---­ - .. - ____ a. 69,919,991 59.467,637 21,546,322 37.921,314 935.121 2, 783,012 1,580,229 2,689. 133 2.464,859 

---­ -­ ..- ---­ ._-. 69,686,535 58,849, 134 21,594,515 37,254,619 891,284 2,780.925 1,654,911 2,862,788 2,647,492 

.. -. -. -­ - --_. --­ _.... ... ------­ -.-­ 65,009,586 55, 205, 280 21,466,910 33,738,370 833,147 2,549,120 1,565,162 2,348,943 2, 507,933 

-. ------­ .-... - - - --­ ---­ · . 50,445,686 

38,957, 132 41,012,357 30,652,234 

14,387, 569 

10,854,351 

26,624,788 

19,797,883 

729, 730 706,227 

2,546,808 

2,219,202 

1.380,396 

1,328,464 

2, 383,677 

1,836,053 

2.392,719 

2,214,951 

......­ ... _ .. ----..­ -­ 40,463, 125 32,081,604 11,553,669 20,527,935 796,538 2,210,607 1,321,875 1,771,533 2.280,969 

------_.­ - . --­ -­... ­ 41, 864, 542 33.553,533 10, 174,410 23,379, 123 899,345 2,255,327 1,300,280 1,649,234 2,206,823 

-- -­ ._--....-­ · 39, 108,386 31,044, 121 9,676,459 21,367,662 779,291 2,474,762 1,237,768 1, 425, 260 2,147, 184 

'" ... -----­ -­ --­ - -­ 40,672,097 32,958,966 12,553,602 20,405,364 676,832 2,526, 165 1,165,519 922,671 2.421, 944 

.. - ---­ - .. ----­ 43,800,388 36,840,704 16,027,213 20,813,491 643,055 2,309.866 932, 145 782,511 2,292, 108 

.­ - - -. .-- . 40,121,760 34,766,174 14,766,796 19,999,378 511,210 1,618,775 988,483 503.462 1,733,655 

----­ ----­ 22,371,386 17,797,593 9,668,956 8, 128,63/ 447,496 1,423,646 923,857 504,746 1,274,048 

.------ .­ . ----­ 13,047,869 9, 192,245 4,744,083 4,448, 162 432.540 1,048,517 780,982 771,902 821,682 

-._­ - --­ - - 7,370, 108 4,396,980 2,053,469 2,343,512 ~07. 058 820.056 698,077 617,373 430,564 

----_. - ---_ ... 5,340,452 2,963, 130 1, 147, 592 1,815,538 360, 071 624,253 608,518 447,088 337,392 

196L -_. 1960__ - . . 

1959-- ----­ 1958-. 

1957___ 

1956 __ -

195L _.. -~-

1954_ .--- -. 

195L __ 

1952_.

195L______ 

1950.­

1949_

1948_________ "T 

1947­

1946_ ___ a._ 

194L ___ 

1944_ 

1943_ ---­ 1942 ____ 

1941. ­ 1940_ 

Footnotes on p, 124_ 
124 .lnnual Report ')~

Stati.~tical TableR ~;)

Footnotes for tables 1-4 Footnotes for tables 1-4-Contlnued 

!'ioTE.-Calendar year figures. by regions, districts, States, aud other areas, for 

selected types of taxes, may be obtained from the Public Information Division, 

nternal Revenue Service, Washington 25, D.C. Floor stocks taxes are reported 

separntely only during the periods in which the collcetions are of significant 

amounts. Relatively small amounts collected in subsequent periods are merged 

with the amounts shown for the reinted class of tax. 

*Less than $500. 

I The receipts in various States do not indicate the Federal tax burden of the 

respective States, since taxes collected in one State are, in many instances, borne 

by rcsidents of other States. For example, withholding taxes reported by em­ ployers situated in metropolitan areas near State bouudaries iuclude substantial 

amounts withheld from salaries of employees who reside in neighboring States.• 

Includes tax 011 business income of exempt organizations. 

3 Collections of uldividual income tax not withheld include old-age and disability 

insurance taxes on self-employment income. Similarly, the collections of income 

tax withheld are reported in combined amount with old-age and disability insur­ ance taxes on salaries and wages. Estimated separate national totals for individual income tax and for old-age and disability insurance taxes are shown in the 

text table on p. 4 of this report. Amounts of old-age and disabilitv insurance tax 

ollectiolls, classified by S~atcs, are compiled by the Social Security Administration as a byproduct of its wage and income record-keeping operations and are published 

periodically in the Social Security Bulletin. 

• Effeotive for taxable years beginning after 19GO, self-employment tax and 

taxes imposed by the Federal Insurance Contributions Act are applicable with 

respect to Guam and Arneriean Samoa. Amounts of such taxes collected in 

Guam and American Samoa are combined with similar taxes reported for International Operations-Other. 

T> Tax payments made to banks, under the depositary receipts system, are included in internal revenue collections for the period in which the depositary 

ceipts are issued. However, such payments are not classified by internal revenue districts (nor by tax subclasses to which excise tax payments relate) until 

the depositary receipts are received in internal revenue offices with tax returns. 

Accordingly, the items shown as "Undistribut.ed depositary receipts" represent 

the amount of deposita.ry receipts issued, less the amount of depositary receipts 

received with returns and distributed by district and tax class. 

, Beginning \dth fiscal year 1957, the United States total for individual income 

tax withheld is adjusted to exclude withheld individual income taxes transferred 

to the Government of Guam in accordance with the provisions of Public Law 630, 

approved Aug. 1, 1950 (64 Stat. 392). This adjustment amounted to $4,464.,000 

for 1961. 

1 Includes railroad employment, compensation tax and tax on railroad employee 

representa tives. 

S Amounts of taxes collected in Puerto Rico on tobacco and liquor manufactures 

coming into the United States are covered into the Treasurv of Puerto Rico under 

the provisions of sec. 7652(a) (3) of the Internal Revenue Code of 1954. 

Such amounts are included in overall collections results (tables 1 through 4), 

beginning with 1955, and are shown separately in table 7. 

g Includes occupational tax on manufacturers of stills, rectifiers, wholesale liquor 

dealers, retail dealers in liqnor or medicinal spirits, and 110nbeverage manufacturers of spirits. 

10 Includes seizures, penalties, etc., and tax on stills or worms manufactured. 

11 Includes occupational taxes on wholesale and retail dealers in wines or in 

wines and beer. 

12 Includes occupational taxes on brewers and wholesale and retail beer dealers. 

13 Includes taxes on large cigars, classes A through G, and on small cigars. 

" Includes taxes on cigarette papers and tubes, oourt fines, penalties, and taxes on leaf tobacco sold or removed in violation of sec. 5731, Internal Revenue Code. 

15 Includes taxes on pistols and revolver,,; phonograph records' rnusic;ll instruments; sporthlg goods; fishing rods, creels, etc.; blISill~SS and store machines; 

cameras, lenses, film, and film projectors; electric llght bulbs and tubes; 

firearms, shells, and cartridges; mechanical pencils, pen~, and lighters; and 

matches. 

11 Includes taxes on ticket brokers' sales, on lea.ses oC boxes or seats, and on adl1liSllions sold by proprietors in excess of established prices, us well as general 

I.ldmi~sions tax. 

17 Includes taxes on coconut oil from the Philippines, the Trust Territory, an the t-niled States possessions, as well as other coconut and vegetable oil~ processed "luder Publi{' Law 86-432, the 3 cents per pound tax imposed by Code 

Sec. 4511(a) on the first domestic processing of coconut oil, fatty acids, or salts 

derived therefrom, or any mixtures or combinat,ions containing such oil, acids, 

or flults, is suspended from Oct. 1, 1957, through June 30, 1963. 

I' Includes taxes on transportation of property and oil by pipeline (repealed, 

efTccti\'e Aug. 1, 19.58); adulterated and process or renovated buttcr, filled cheese, 

nnd imported oleomnrgarine; and firearms transfer and oceupat,ional taxes. 

IV Corporutio.n income tax rates: First $25,000 of nct income, normal tax of 

30 percent; net income in excess of $25,000, combined normal tax and surtax of 

.52 percent. Normal tax und surtax rates also apply to net income derived by 

c"rtail! exempt organizations from unrelated trade or business. 

20 Hates of tax are as follows: 

Individual income tax: Graduated rates from 20 percent on first $2,000 

of net income in exces::; of exemptions to 91 percent on amount over 

$200,000. Old-age and disability insurance taxes on self-employment income: 3% 

percent for taxable years beginning in 1959 and 4% percent for taxable 

years beginning in 1060. 

~l Rates of tax are as follows: 

Income tax withheld: ~Tages in excess of exemptions taxed at 18 percent. 

Id-age and disability insurance taxes on salaries and ~wages: Employers' 

tax 2;~ percent to Dec. 31,1959; employees' tax 2H percent to Dec. 31, 

1959,3 percent thereafter; both imposed on taxable portion of wag:es. 

2' Jssues of stock 10 cents per $100 aciual value, except that such rate sha.ll he 

'f c<.'nts per $100 if issued after April 8, ]960, by a corporation which qualifies as a rep;ulakd investment company or a real estate investment trust; i~sues of bonds, 

11 cents per $100 face value. Transfers of stocks, 4 cents per $100 actual value; 

transfers of bonds 5 cents per $lOO face value. Foreign insurance policies, 1 cent or 4 cents per $] of premium. Deeds of conveyance, 55 cents per $500. 

3 In the case of cert:1in racetracks the following rates apply: 

Adrnissions-l cent for each 5 centi" of amount paid; tIcket brokers' 

sales-20 percent; leases of boxes or seats-20 percent. 

2. Narcotics, 1 cent per ounce; narcotics order blanks, $1 per hundred. Marihuan:l., $1 per ounce; marihuana order blanks, 2 cents each. Amounts shown also 

in dude occupational taxes levied on manufacturers, dealers, and practitioners. 

For clnsses and rates of occupational taxes see table H. 

2! .\dulterated butter, 10 Cl'nts per pound; process or renovated butter, Y4 cent; tlo~estic filled cheese, 1 cent; imported filled cheese, 8 cents; imported oleomar­ ~!lrme, 15 cents. Occupational taxes are levied on manu[arturers or dealerg in the~p products and arc included in the amounts shown. 

" Transfers of machilleguns, short-barreled firearms, silencers, etc., $200 each; 

cprtain double-barrelcd guns, $1 earh; transfer of other special typos of firearms, 

$5 each. Occupational taxes are levied on manufacturers, importers, or dealers 

III firearms >lnd are included in the amounts shown. 

. 2, Since January 1, 10,51, withheld income taxes and old-age and disabilit.y 

Ill"urance taxes on employees and employers have been paid into the Treasury III combined amountg without separation as to type of tax. The fi!!;ures for prior 

periods hl1Ve been combined accordingly in this table for purposes of comparison, 

bnt are shown separately in the annual reports for those periods. 
Table 5,-lnternal revenue refunds including infere-st 

(In thousands of dollars] 

Individua! income and employment taxes 

Internal revenue regions, districts, States, and other areas fatal Corporation Estate Gift Excise 1 

income and 

(States represented by single districts indicated in parentheses; totals for other profits Excessive Other 

States shol'ln at bottom of table) prepayments 

(1) (2) (3) (4) (5) (6) (7) 

(Georgia) =_ - - 566,881 

87,770 

69,653 

" 6,031,.107 

AtJ..nq ngloR.­ __ _ __ 

Atlanta__ Birmingham _ _ (Alahama)__ _ _ 

United Shltei, total !1_~. • 869,214 

.3,192 

5,006 

7,266 

17,24B 

2.382 

1. SUI 

1.66,536 

.&9,02.5 

75,180 

59,926 

1,16 

29 

56 

23,073 

185 

9 

7 

902 

1---­

:.l04,833 

16,06' 

4.563 

796 

1---­

Columbia_______ __ _ (South Carolina) _ 45,190 2. 135 40.496 1,282 216 20 1,041 

97,886 

33,180 

Greenshoro _ _ (North Carolina) Jackson _ (MISSISSIppi) _ 5,368 

1,150 

3.428 

1. 224 

84,303 

29.328 

235 

26 

89 

3 

4.463 

1,450 

156,744 

76,459 

369,169 

l4.365 

Jacksonvllle____ _ _ 0 00 _ (FIoflda)_ _ 0' 

Nashville _ _ 0 (Tennessee) _ 

Bo.stQn ,..!liOn ~___ _~_4_ _. .. _ Augusta (Maine)_ _ _ 

15,914 

6,353 

54,3-37 

2,197 

5,625 

L 705 

8.298 604 

133,296 

65,896 

298,485 

20.978 

526 

8U 

',001 l54 

34 

23 

50 

1,348 

2.401 

5,998 

332 199,712 

9.173 

90,275 

Boston .. _ _ _ _ (Mas38cnusetts) _ 

Burlington _ (Vermont) ------­ Hartford _ _ _ (Connecticut) _ 

33.850 

957 

12.168 

3,785 

305 

2.531 

158,341 

7.650 

72.680 

635 

29 

702 

43 

3 

4 

3,059 

229 

2,189 

16,788 

28,866 

Portsmouth __ _ (New Hampshire)__ _ _ 

PrOVidence 0 (Rhode Island) _ 1.593 

3.573 

507 

566 

14,443 

24, 392 145 

235 (')

(.) 99 

91 

784,599 

297,113 

290,441 

127,462 

Chlc.go r-e,glan._ Chicago ( ee (b) beIOw)_ _ _ 

Detroll 0______ (Midllgan) 0 • Milwaukee __ (Wiscollsin) .~ ..__- __.. 

UO,41JO 

64,386 

44. 726 

28,365 

19,869 

7.768 

6.435 

2,998 

589,196 

212.854 

230.501 

90,338 

Z,792 

1,099 

1.056 

398 

57 

7 

33 

5 

31,986 

11,000 

7,689 

5,359 

69, 583 

658,042 

Springtleld •__ (See (b) below) ._ 

Clncinnatl rl!!gion_~_A • ._ ._.. __ 2.924 

82,061 

2,667 

15,578 

55,803 

535,042 

239 

1,010 

11 

25 

7,938 

24,336 

115,410 

223.148 

Cincinnati _ _ _ (See (I) helol'l) __• _ Cleveland. (See (0 below) , _ 15,912 

42,083 

1,828 

5,491 

92,594 

171,476 94 

418 

11 

9 

4,971 

3,671 

122,430 

60,453 

IndianapolIS (Indiana) ._. _ Louisville _ (Kentucky) _ 11,091 

3.197 

3.472 

1. 593 

98,597 

52.008 

203 

60 

1 

1 

9,064 

3,594 

Parkersburg_ (West Virginia) _ 38,128 2,667 34,515 598 119 229 Richmond __ 98,473 • _ (Virginia) _ 7.101 85.852 2.595 115 2 2,808 

.57,331 D.IIA~brUe~~:~ue~ ---~ 25,931 - --:-:----(Ne\'JMexi-coy----- ::=_: 55,555 

1,122 

21,586 

1, 133 366,854 

23,323 1,470 9 82 3 

11,785 340 

136,262 Austin _ (See (11) below) • _ 20,623 105,607 6,011 46:; 48 3,508 

111,388 

30,578 

Dallas _ (See (h) belol'l)_ __ •• Little Rock (Arkansas)_ _ _ 12.179 

1,218 

7,624 

1,181 

93,256 

26.964 

341 

186 

14 (0) 3.974 

1,030 New Orlean'_ 79,666 _ (Louisiana) . _ 12,180 63.771 2,514 145 (') 1,056 

Oklahoma City (Oklahoma) 67.506 8.233 53,934 3,123 324 17 1,875 

New York CitV' regiOn_ 798,127 174,088 674,486 20,115 8,507 64 :.lO,867 

Albany _ _. (See (e) below) _ 49,741 4,612 43,575 556 113 (.) 885 Brooklyn _ (See (e) below). __ 258,986 11,692 237.103 3,322 1,677 7 5,184 Buffalo __ (Sea (e) below) _ 87,005 7,552 76,467 571 241 2 2,172 

Manhattan_ (Saa (a) below) _ 345,607 141,692 171,535 14,988 6,351 43 10,998 

SYlacu... (Sae (e) below) _ 56,788 8,521 45,805 1 698 125 12 1,627 

Om'hJt h1I'Ott 

Aberdeen _ 

Cheyen'1l?


Dellve, __
 

De:'5 Moines FarRO _
 

Kansas City
 

Omaha
 

Sf. LouIS
 

Sf. Paul
 

Wichita.
 

Phlllldelphl" .eglon_ 

B:illtlmore
 

Camden.
 

Newark
 

Philadelphia
 

Pittsburgh 

Scranton
 

Wllrnineton
 

Son Francisco region _ 

Aflchorage
 

Boise
 

Helena 

Honolulu
 

Los Angeles_
 

Phoenix 

Portland 

Reno 

Salt Lake City 

San Francisco Sealtle _ • 

OfflCd of Inlcrn••lonJd OperaUGns Puerto Rico __ Other . 8"...... 01 Cuftoms _ ___ 

522,383 

(South Oal\ora) U,588 

(WI{Orfllnr.-) 9.662 

61 119 

(Iowa) 

(CoiLJraqo) 

n,563 

(NDlltl Dakota) _ 14.3,3

(S e (c) 1'1'101'1) _ 53.377 (N'braska) __ • 32 4f,3 

(See (c) below) _ 85,010 

(Mi nnescta) 118.502 (Kallsas). __ 60,686 

743,413 

(Maryland and D.·C.i_ 135,804 (Se,,(d) below) _ 65,276 

(See (d) belol'l) _ 165, 837 (See (g) below) _ 198. 712 (See(g)below) .. lIS. 633 (See (~) below) __ ~_. __ 39, 303 

(Delaware) 12,847 .1~ WIlt 721 

(Alaska) 7.031 

(Illoho) 18,366

IYiontana)_ 17,977 

Hal'l~ii) _ 22. 389 

See (a below)_ 524,308 

(AI;lDlla) • __ 40,128 

(Orei,lln) 59.284 (Nevada) 12,505

(Utah) _ 30.506 

(Se" (3) below) 258,509 (Was~lngtOlI) _ 106 716 

12,357 

3,739 

28.618 

1, 085 

$~ 81 

3B9 

552 I 349 

li,862 

'532 

6,485 

2.636 

16. D8S 14,192 

4,731 

100,280 

9.892 

11.333 

20,071 

28,337 

V,618 

6.059 

1,970 

151••44 

763 1,777 

890 2.217 

9 ,586 

2,074 

8,580 

1,410 

1,732 

26,382 

15.032 

2, 133 4 2,128 

1,16, 29 

15 

~57

257 

47 

73 

7:; 

148 

154 

106 

2,509 

318 

288 

593 

764 

419 

62 

64 

2, 116 

43 

10 

101 

617 

220 

65 

42 

12 

601 

4£5 

275 

275 

1.218 

1.338 221 

881 

8,507 

512 

1,245 

8G6 

119 

4 

13 

15 

52 

1 

17 

6 

4 

7 1.8 

9 

2 

9 

12 

56 

1 

30 

152 

1 

3 

116 

7 

1 

1 

10 

14 (0) 

(0) 

125 

18 

7 

II 

64 

20 

69 

62 

51,11 

3,£82 

~40

2.246 

10, \33 

4.010 

5,142 

3.727 

7,851 

9,010 

6,137 

n,286 

6,214 

758 

9,533 

4,657 

928 

95.1 

238 16,92A 

18 1,351 

1,279 

361 

3.701 

569 

1, DO'. 

14~

386 6,531 

1,579 

12 

L 

30 I, OIlS 

\0,232 

18,938 

12,993 

10,291 

20.867 

8.642 

6,538 

7,482 

Totals tor States not sfrown above 

llll.n. 

~, 854 

7. "69 ~8. 903 53, POI 9, J35 

37, 772 24,62/ 

59, 327 

92,037 

47,444 

&00,563 

115,349 

51,263 

134,682 

159.8Ll 

98,877 

31,261 

9,708 

895,302 

6.069 

14,395 

14,640 

18, a66 418,135 

35, £76 46,701 

10.443 

27,677 

217.457 

84,841 

26,864 

3.548 

23,315 

U,n2 629 

S71 2,349 

2,252 428 

3,903 

1.381 

1,652 

3, 105 

2,261 

16,21] 

4,022 

1, 632 

949 

5,120 

2.736 967 

787 

25,723 

181 

800 

1,157 

742 4,853 

1,581 

2.933 

d66 

699 

7,528 

4.785 

3,054 

185 2,869 

635, 892L12' J8t 10.435 

5,555 

2,581 

20,135 

7.319 

8,823 

13,635 

(a) CallfarillA __ 

(b) IllonGls. 

(c) Mrssau'l _ (d) New Jersey _ 

(8) l'Iew York_ (I) OhlO _ 

(g) PennsyIVtHlia __ 

(h) Texas __ 

782,817 

366,696 

138.447 

231,113 

798, 127 

338, 558 

363.648 

253.650 

122,968 

67.310 

22,570 

31,40' 

174,068 

57,995 

57.014 

32.802 

268,657 

97,099 

185,945 

574.486 

264,070 

289.959 

198,863 

'Le" than $500.
 1 Includes drawbacks and stamp redemptions. .....
 2 Figures have not been reduced to relleet reimbursements from ti,e Federal Old-age and Survivors and Federal DISability Insurance Trust Funds amounling to $95,740,000 If' 1961, and ~89,190,000 LC 

in 1960, trom the Highway Trust Fund amounting to $125,703,000 in 1961 and $103,473,000 in 1960, and from the Unemployment Trust Fund amounting to $2,245,000 in 1961. 

3 Net of 75,750 undeliverable checks totaling $3,876,000. 

-I 
Table 6.-Numbfl of returns filed, by intemal revenue regions, dittrich, Statn, and other areas 

Internal revenue regions, districts, States, and other areas 

( tates represented by single districts Ind,caled in parentbeses; totals for otber States sbown al bollom of lable) 

Total 

returns 

filed 

(I) 

Individual 

income lax 

(2) 

Corporation 

income tax 

(3) 

Partnersbip 

4) 

Declarations 

of estimated 

la and all 

otber income 

taxes 

(5) 

Employmenl taxes 

(6) 

Estate tax 

(7) 

Gifltax 

(8) 

13,5U 

Excise taxes 

(9) 

31 941.81' Unlit. S..t.... t<>bl._________________________________ '5,m,743 U.287,HO 1,171,473 1,00),114 1.5llo', 524 20,6$0,200 U,U5 

Atlanta f9lIloII____________________________________________ 

AUanta ___________ (Georgla)________________________ 

",mi.~.m ~- 1""=" ~~ ~~~ ~~~ -~~~ ~~ ~~ Columbia _______ Soutb Carolina)._ .. ________________ Greensboro____ _____ _ North Carolina)_____________________ Jackson_____________ Mississippi) ___________________ Jackson ville_ _______ _ florida) ___________________________ l'Iashville ___________ Tennessee ___ . ____________________ 

Botton region 

Augu la --~~=====~=~-r3i~e) : __ :==:===~===:======= Boston_ ___ ____ _____ Massacbusetts)_____________________ Burlington. _________ (Vermont)­ ________________________ Hartford_ . ____________ ~Connecticut) _____________________ Portsmouth ._______ 0 __ l'Iew Hampshire)- _________________ • Provldence __________ (Rhode Island).-----­ _______________ Chl..go OO9lon___________ . __________________________________ 

Cbicago ______________ (See (b) below)____________________ . 

~~I~~~ k-ee_-_-_ ~= ==: = ~re:~~~~~~~j::::":= :::::::=:=::::::=:: Springfield____________ (See (b) below) _____________________ Clneln....tI rql"" ___________ 

Cincinnati ____________ (See (f) bel~w~.:::=:::::=:=:::::::: Cleveland ___________ (See (0 below _____________________ . Indianapolis______ ..__.. (1 ndiana)_________________________. 

louisville_..------­--­ rentuCkY)-- _______________________ ~arkersburg--------- West Virginia) ________________. lchmond ____________ Vtrgrnla). _.. ___________________... Dalla. rqlon _________ 

Albuquerque__ .______ ~NeWMexicoY=::::=:==:=:=:=:=:=::: Austin __ .. ____________ See (n) below)____________________ . Dallas ... _____________ See (h) below)-­ __________________ . little Rock ____________ (Arkansas)- ________________________ New Orleans. _________ (louisiana) _________________________ Oklahoma Cily _______ (Dklaboma)___ . _____________________ How yo.k City ...1'"-________ .0 0 ________________________ •• 

Albany. _____________ .. ~see ~e) below).. -------------­.. ----­ Brooklyn ________ .. ___ See e) below) ____________________ .. Bullalo_. ____ •• _______ (See (e) telow) ___________ •••• __ ...... _ 

10,145.811. 

1,646,794 

1,273,507 

960,671 

2,062,895 

710,853 

2,573,330 

1,617,631 

6,20B. 019 548.513 

3,028; 255 

221,368 

1,533,371 

366,993 

509,519 

11,160,117 

4,300,219 

3,918,939 

2, 193, 705 1,547,254 

11,486,341 

2,020,337 

3,071,698 

2,341,101 

1,330,536 

834,679 

1,887,990 

1,353,067 

25,944 

2,458,968 

2,226,056 

751,543 

1,334,762 

1,155,794 

10,111,082 

954,526 

3,530,081 

1,381,007 

6,861,536 

1,042,320 

830,796 

612,060 

1,327,502 

429, 188 

1,566,521 

1,053, 149 

4,023,46' 

347,372 I,m;m 

972,002 

234,814 

345,704 

1,825,120 

2,821,988 

2,616,184 

1,388,299 

998,749 

7,536,495 

I, 343, 389 2,043, 184 

1,572,667 

851,388 

546,388 

1,239,479 

5,190,894 

281,699 

1,518,214 

1,355,021 

457,179 

846,294 

732,487 

'.558,110 

633,293 

2,373,438 

933,737 

121,611 

17,116 

9.912 

8; 963 

20,576 

6,261 

45,586 

13,197 

98,641 

6,112 

53,370 

2,564 

22,376 

4,544 

9,675 

130,120 

52,394 

40,781 

26,934 

10,811 

U4,UI 

20,345 

34,911 

22,437 

10,249 

8,421 

18,106 

BO,786 

3,672 

24,476 

21,681 

6,128 

15,162 

9,667 

240,281 

11,978 

66,044 

16,711 

108,5U 

14,767 

11,550 

7,797 

18,605 

8,658 

28,656 

18.481 

41,940 

3,572 

17,518 

2,298 

12,936 

2,506 

3,110 

127,237 

46,291 

37,926 

21,948 

21,072 

103,527 

15,136 

25,626 

21,206 

17,344 

9,239 

14,976 

104,536 

4,967 

28,677 

34,982 

9,246 

12,861 

13,803 

107,760 

8,582 

33,223 

12,502 

6U,310 

88,448 

66,311 

43,365 

106,195 

37,073 

200,402 

82,586 

560,565 

38,888 

284,636 

15,199 

158,163 

27,033 

36,646 

1,041.28& 

455,421 

283,547 

188,588 

113,730 

794 612 1 3,781 

229,235 

160,376 

79,200 

48,672 

113.348 

537.421 

25,466 

167,482 

154,299 

36,378 

80,727 

73,069 

1,012.381 

66.099 

263,969 

110,085 

2,657,511 

419,216 

298,869 

242,181 

502,697 

188,290 

628,676 

377,589 

1,242, 41 126,563 

572,657 

57,743 

306,639 

81,666 

96,973 

2,331,305 

789,139 

763,220 

455,953 

328,997 

2,m:~6~

597,922 

467,513 

308.749 

176,754 

427,641 

2.010,271 

90,184 

591,973 

558,351 

197,560 

305,001 

267,202 

2,401.142 

191,190 

688,343 

251,430 

5,920 669 

508 

407 

849 

327 

2,505 

655 4,664 391 2,069 166 1,417 

286 

335 8,626 

3,455 

1,855 

1,595 

1,721 

1,201­

1,406 

1,789 

1,698 

774 

384 

1,150 

4,304 166 1,288 

1,283 

319 

557 

691 1,256 

820 2,288 

1,212 

9,72A 

1,504 

964 

653 

1,700 

444 

3,472 987 

7,264 

439 

3,738 232 2,218 

256 

381 

11,044 

4,118 

3,053 

2,592 

1,281 

9,266 

1,824 

2,973 

1,477 

975 

494 

1,523 

7. no 

440 2,431 

2,171 

621 

829 

1,218 

12, 5 672 2,888 

1,257 

456,471 

62,754 

54,597 

45,245 

84,771 

40,612 

97,512 

70,987 

22',235 

25,176 

102,127 

11,729 

57,620 

15,888 

16.695 

478,475 

127,413 

! 72, 373 107,796 

70,893 

414,610 

76,874 

136,058 

93,727 

61,857 

44,327 

71,767 

417, 45 19,350 

124,427 

98,268 

44,112 

73,331 

57,657 

361,7 3 41,892 

99,888 

54,073 

509,597 1,08\,465 3, \79 7, \25 \30,16\ 3,~,078 1,992.159 136,129 4,563 Manlt,lIlan See{e)belllw>. ------.­ 62,639 188. iH i5i 673 43, \45 See 940,390 626.253 9.419 8.790 (0) below)______ .... - .-- Sytlcus ._ 9,1111 111,'" .63,015

Om.h. ret'.n. 1,05l, 112,no 7»' 48.. 2,lU, 041 ]0 S6.OU ,960 95,946 06 323 '<2,840 'm:~~l 226,842 2,664 5.840 Aberdl,"n 13 585 48. 403 \2\ 311 \3,472 '! Wyoming). outb Oako!) _ 197,649 11 ,134 2.252 3,371 Cheyenne .. __ _._ 80.738 2\8,180 764 1,241 41 950 985,419 615,910 12,430 14,204 Denver _ Colorado) -_ ---­ 28,184 137,367 350,604 2,339 \,604 7U58 1,562, ,118 955.50 lI,862 De. Moines __ Iowa) ° • - • ------­ 13. 830 90,644 248 2H \8,478 3Ja" 117 207, 102 2,758 4,783 Fargo orth Oakol~) ­ __ 66,126 224,751 55fi 974 46,00\ 9 5,290 633,631 10,289 12,913 Kansas City See (c) b<low) --.---­ 204,081 1,003 1,245 48, 110 510,357 7.975 12,669 55.983 Nebraska)__ . - --­ 841,423 Omaha. 110,934 290,733 890 \,423 54,128 1,324,272 834, 3 18,219 12,982 Sl.loui (See (c) below) • • ---­ __ . 140,785 394,998 1,669 1,505 8 ,972 1,865,234 1,200,639 18,902 22. 764 SI. Paul _ (M'nnesota) .----......-. ­ 96,655 272, 707 1,196 2,197 59,586 1. 208, 403 752,502 8,660 14,900 __ (Kansas). . ---.-.. ------ ­ Wichita 190,101 2,481,9CI1 8,548 10.725 445,083 12,281,152 I, OB3, 902 149,522 105, S64 PhOodolphla roglon_ 180,301 494,470 1,492 2,125 85,224 Marylarld 2,330,487 1, 523,906 27,363 15,606 Ballrmore. and O.c:)=~:·-:_:==:::~-: 216,753 825 789 37,995 647,578 13,568 9,510 77,855 see (d) below)_. •••, I, OOi, 873 Camden __ . 223,767 539,861 2,139 2,475 78,993 2,585,058 1,661,244 52,635 23.944 Newark __ See (d) below)___ ••--•.-.. ­ 263,099 632,550 2,209 2,76 114,764 3, 188, 97 2, 117, 134 29,537 26,439 Philadelphia._ See (g) below) ------ • 390,597 1,256 1,582 81,152 1,430,308 15,129 20,656 162,134 (See (g) below)----.. ----..... 2, 102,814 Pitlsburgh 58,063 154,443 437 545 38,759 812,152 546,392 5,762 7,751 Scranton __ . (See (g) below)--------... -•• 59,233 190 444 8,196 157.340 5,528 1,658 24,882 Wilmington (Delaware) .____ -_ -.------­ 257,471 _ 1,166,612 2,857,329 11,220 14, 022 597,1112 13,841,3U .,ta2,9U 146.571 171,3801 San F,..nclICo rwglon 10,004 7 14 2,723 73,905 56,777 759 1,221 2.400 Anchorage (Alaska). 20,661 81,367 172 265 18, 42 348,058 218,406 3,506 5,039 Boise___ . ~Idabo) --- -------•••••- ..--­ 88,620 402 635 26,759

61,100 160 242 227,808 4, 01 5,916 23,014 377,555 14,929 234,581 3,381 3,099 32.606 ~~~e~~iu :: __ :~::::. (fi'~v~;t)a)- .-- _. .=:::.~~::.: __ 350,098 454,514 1,058,719 4,700 5,568 178,851 3,410,655 63,368 59.355 los Angeies .. (See (aJ below)- .• - ---------.-- - 5,235,730 46,879 140,170 385 578 28.328 635,597 404,600 7,654 7,003 Phoenix (Amana) - ---- -----.-­ I 456 50,401 14,071 75,375 226,676 683 991,014 612,004 10,348 Portland (Oregon) ---.-.-------.--- --.­ 12,759 37, 732 101 203 12 315 184,155 116,085 2,358 2,602 Reno___ 0___ (Nevada) - -----.--. --- --­ 25,397 86,163 174 405 23,572 435,783 288,752 5,849 5,471 Salt Lake City (Utah)_ -- .--- -- --- ----­ 356,514 739,323 3,542 3,667 15",620 3,651,048 2,315,811 28,782 49,789 San francisco.___ (See (a) b low)_ ..--- -. ---­ 989 87,042 17.818 1I6, 573 327,455 894 1,564,368 997,432 16,165 Seattle___ _ __ (Washington). --- -.---- -_.. ­ Ow 754 661 101,615 19,275 1,575 2U 314,821 110,623 omce of InternaliDnat Ope....UonlJ _ 8 617 55 4 40.715 94, 170 159,818 24,249 Puerto Rlco_ 60,900 5,105 1,575 204 137 235,009 166,374 606 108 Other __ 

Totals for States nol sho n above 

1,798,042 8,242 9,235 332.471 5,726,466 92,150 109, 144 811,028 <a) California_ . - • - _. ----­ 8,886,778 1,118,1 6 5,176 5,399 198,306 3,820,737 63,205 67,363 569, lSI (b) Illinois_ ___ ----.. - '--'-' 5,847,473 515,484 2,397 100,129 1,468,644 28,508 25,895 177,060 (c) Missouri -..--0-----­ 2,319,562 756,614 ~: ~~~ 3,264 116,988 2,308,822 66,203 33,454 301,622 (d) New Jersey ••• __ 0 -'-'-­ 3,589,931 2,401, 142 8,256 12,615 369,759 6,558,880 240,281 107,760 1,012,389 10,711,082 (e) New York_.. .- --..-.---.­ 995,504 3,195 4,797 212,932 3,386,573 55,256 40,762 393,016 5,092,035 1,177,590 3,902 4,892 234,675 ~~) ~:~~syiviinia:--_~:::::::~----- 4,093,834 50,428 54,846 483.296 6,103,463 1,150,324 2,571 4,602 222.695 (b) Texas__ _ .• _ 63,659 321,781 4,685,024 2,873,235 46,157
--------- ------------ --- --

----

--

-----

130 .tnmwl RelJOr't Sfo:b:8ti('al l'a711(j,~ 131 

Table 7.-lnternal revenue tax collected in Puerto Rico on manufactured product, coming Table 9.-Est(lblishments qualified to handle tobacco malerial" or to ellg(lge in the into the United State" by objects of tallatlon production or exportation of tobacco products and cigarette papers and tubes 

1.568 1,421 Table 10.-Permits relating to distilled ,pirits under Chapter 51, Internal Revenue Code, Class F .. ••• •• __ ._•••• _••••••• __ • _•• •• _ 202 1 1954 Class G --- -- --- --- _-.- _-- ---- --.--- _------- _---- -•••..•. -. _-- ----- -.•• -- I 1 1 Cigars, small. __ •• _ Cigarettes, large.. • • _ I------~::::- ----(.-----­ Cigarettes, small.._ • • • __ • • ._. ... _ 

Manufactured tobacco (chewing, smoking, and snuff) • 

Mote.-Amounts of taxes collected in Puerto Rico on tobacco and liquor manufactures coming into the United States are covered into the Treasury of Puerto Rico under the provision, of sectIOn 7652(8)(3) of the Internal Revenue Code 

of 1954. Such amollnts are included in overall collections results (tables 1 through 4), beginning with 1955. 'less than $500. 

Table 8.-&foblishments qualifled to engage in the production, distribution, storage, or use of alcohol and alcoholic liquors 

As of June 30­

Class 01 establishment
 1961
 1960 

Distilled spirits plants: Plants (net number) _ - - ------- --_._--- -- -.... ..... 360 366 Facilities:

Status 

Total 

Section 

5171, 

I.R. Code 

Distilled Dealers in 

Section 5271, I.R. Code 

Users of­

(I) 

spirits 

plants 

(2) 

specially 

denatured 

alcohol 

(3) 

Specially 

denatured 

alcohol 

(4) 

Specially 

denatured rum 

(5) 

Tax·free 

alcohol 

(6) 

In effecLJulY I, 1960 ______ •._. 13su~d ______ •• ____.____ ._...­ 11,379 

658 

190 

33 

39 

8 

·3,714 

348 ' 41 

2 

11 

---------j\­

7,395 

267 -_.. - ­

232 

---------232 

7,430 

2,881 

Terminated, fotal. ___ • ___________ Revoked ____________________ 

Otherwise terminated __ .. _____ 

636 

636 

32 

32 

3 

r 

358 

358 

In cUed June 30, 1961 .• _. _______ Amanded ___ . _________________ 11,401 

3,978 

191 

20 44 

16 

3,704 

1.048 

32 

13 

Production •. _'_ 196 199 Warehousing • •• _•••• __ • ._ •• 247 248 Bottling Revised. in bond .• • ••• .... •• ._ 55 52 Denaturing .. • __ .... _ _. . ._. .. t 42 40 

Taxpaid bottling.. _ ._ 140 47

Rectifying • 123 123

Denatured and lax-free products (dealers, users, etc.): Dealers in specially denatured alcohol. _ 44 39 Users of specially denatured alcohol and denatured rum___ _ __ __ 3,736 3,755 

fleprocessors, rebottlers, etc., of specially denatured alcohol arlicles_ 1, 082 1,101 Users of tax-free alcohol._ __ _ • _ 7,430 7.395

Beer: Breweries -- -- -- -. -- -- -•• __ -- -- ---- -- -- -- ---- -- --. _.-- -- ---- .1 220 225 

Wines: 474 495 ~~~~:i~ ~)inn~ cbe~\~ri~-g ho-uses_~~: ~: :~:~:::::::: ::~~~ :::~ :::::: :~:::::::::::::1 113 1 117 

Vinegar: Vinegar factories using vaporizing process __ 6 

Beverage dealers: Importers ... --- _--- __ -- ••••••••• -- -- ....---..-•••-- --- -- ---- -- -- --I 1.644 1,562 Wholesale dealers in liquors "'_" _ 3,823 3,902 Wholesale dealers in beer ._._. _.•• _ •••• __ 7,378 7,488
 

280, 746 267,247
 ~~g:: ~~::~;~ :~ ~~~ro.r_s_: ::: ::~: ::~::: :::::::: :~~::~:::::::::::::::: ::~--I 147,166 149,264
 

Other: 

Manufacturers of nonbeverage products (drawback) _ 966 986 

Fruit·flavor concentrate plants 39 34

Bottle manufacturers... 105 96

lin thousands of dollars! 

Objects of taxation 1961 1960 Class of establishment 

Tota'-- . _ 26,348 22,698 

Distilled spirits _ Manufacturers of tobacco ... - -----­ 23,572 20,646 MdnufBcturers of cigars and cigaretteL .._ Wine Distilled spirits, rectification _ tax_ 602 544 Manutacturers of cigarette papers and tubes_

Beer - -- .--------- -.--..--..... ~.- ... -- ~- .. Deale" in tobacco materials __ --..-- -- -- -- -­ • 46 41 Tob'rco export warehouses._ ------- ---- -:--: :::~~:::::::~: -••-.- -- -._-----. Cigars, large: Class A___ •• •• _. __ ••• •• _. ._.
 Class B •• __•• _. __ '" _._. ._••• •
 "'2 -----(Of---­ ( Revised. 350 38 glm ~~ ~: ~: ~:::: ~~ ~~~ ~: ~~ ~::~~~ 2 3 -~~:::: ~~::::: :~. ~~::: ~:: ~:I

As of June 30­

1961 1960 

154 161 

476 52.4 4 4 

2,215 I 2,257 

105 ·105 
---- --

1,794 119 34 48 32 51 150 

--­ .. -------_ - --­--­-­ I -----------si­ <:::> 32 149 1,460 ~~~~~~~:=~=:::::=::~=~~I,~7~J~~-~-=--=-=-=--~f~19~--t-~-=-=-=-=--=-=--~i~i-4-=-=-=--=-=-=~4~8+===~+===~+===~~==~~4===~~ 5 

'"il 

""­ 1"~ffectJune 30,1961. •• 13,837 527 210 217 150 407 58 1,644 11,201 

Amended___________ 1,524 335 63 219 900 7 

1 Excludes permits for Customs manufacturing bonded warehouses since such establishments are not required to qualify as dlstil16~ spirits plants (15 warehousing and bottling permits and 15 rectifiers 

permits for Customs manufacturing bonded warehouses in effect on June 30, 1961). , Column (2) does not represent the sum of (3), (4), and (5) since one permit may cover more than one activity. 

-0

30 

=3 

3.~ ro~

O-n 

: i 

., , , 

~'"

(.n0'l 

cn~

{gili 

3"a' 3~ '-'l 

-g~ -g~ r;~ l:Il ~;

rr 0 Ir 

: : : 

I !I 

, 

.

<.n<.n 

-.J,p. 

m~
 

~w
 

0lU"l 

8~

I
 

IN
 N 

!l 

, 

» 

I~

cr 

..: 

N

N 

0 

:­

I,
 

IIi
 

1,465 
__________________ 

Table 14.-Number of occupallonal tax stamps issued, covering fiscal year 1961, or portion thereof, by class of laIC and by Internal revenue regions districh, and States I 

Distilled spirits 

Internal revenue regions, districts, and States 

(States represented by single districts indicated in parentheses; 

Total num­ ber of occupational 

tax .tamps ~~~~a~i

Rectifiers Retail dealers Manufacturers of non beverage 

products 

-.-----,-----1 Wholesale )----,---,------I----r---·----­

totals for other Slates shown at bottom of table) issued stills, $55 Less than 20,000 dealers, Retail Medicinal Not ex- Not ex- More than 20,000 proof $255 dealers, At large, spirits, ceeding ceeding 50 gal- proof gal· gallons or $54 $54 $54 25 gal­ 50 gal­ lons, $100 

Ions, $110 more, $220 Ions, $25 Ions, $50 

(1) (2) (3) (4) (5) (6) (8) (9) (10) (II) 

------------------1----1---1---1------------------------ Unltod Statu, total. _ 1,161,101 81 35 96',033 255,011 525 1, 511 77 69 858 1----1----1----1----1--------­----1----1----1--­ At'an... ~'on-------,-.--.- ... 115,229 

Atlanta__ • _ (G rg,a'__ _ • ..... 15,691 

Birmingham____ _ _ (Alabama)-______ 10,854 Columbia (South Carolina) . ._____ 13,635 

Greensboro_ _ __ • (North Carolina)- _ 16,342 Jackson.. (Mississippi)- • ••••-- 11,353 

Jacksonville __ .____ _ (FIonda)- _ .___________ 28,185 

Nashville (Tennessee)- ----••-.--- 19,169 lIoo1.n roalon_ _•• . ••__ .. 65,73G 

Augusta________ (Meine)- _ ._ 6,179 

Boston_ _ (Massachusetts)--------________ 28,258 Burlington____ • (Vermont)__ 3,014 

Hartford (ConneclicuO __ ._ __ 18,746 

Portsmouth (New Hampshire) ------ 4,177 

C,,[:::~i~:;;~;.=: __• (Rhode_l_s~and)_=_ ----====__ 16~;~; Chica~o (See (b) below) '. •__ ._ 46,541 DetrOIt.. __ _ _. __ (Michigan)-- .___ _ 50,952 

Mllwaukee____ (Wisconsin) . 43,482 

Springfield (See (b) below)---.-- 19,068 CIncinnati nalon. __ _ _ 118,011 Cincinnati . (See(tl below)- _ 23,286 

Cleveland_ __ (See (I) below) .___ 39,233 

Indianapolis _ (Indiana)- .. 25.239 Louisville (Kentucky)-------- •• __ 16,543 

Parkersburg __ . • (West Virginia)--------••.-_._ 14,609 Richmofla ._'._____ _ (Virginia)-- __ _ .__ 19,107 

Da.II.. realon __ _ • 108,982 

Albuquerque (New Mexico)____ _ ___ .___ 4,346 

Auslin__________ __ (See(h)below)----------•••• ---~ 38,682 Dallas ~See(h)beIOW)------- __ .______ 16,732 Liltle Rock____ Arkansas)___ __ __ 8,635 New Drl..ns • Louisiana) ... .. 25,446 

Oklahoma City _ (Oklahoma) _......... 13,141 

.w Yo,," ClI)' g'on l.lD,9501 

Albany_ . (St!l' (e) below) - 16,997 BrncklJ'1l (See (e) billow) . _ 39,979 Bu 3In._. __ See Ce) below)_ , 20,445 Manhattan. ( ee (e) below) . _ 37,812 

Syracuse_ (See (e) below) _ • 154 721 Omah. t.-gritn _ 118,39S A erdeen.__ (Soulh Dakota) _. _ 5,592 

Cheyenne _ (WyomlnR)- _ 2,838 

Denver._ (Colorado)- 11,158 Des Moines __ . (Iowa)- _._ .. 17,780 Fargo _ _ _ (Norlh Dakota)-----. • __ •.. _ 3,895 Kansas City (See (c) below • • __ 11, 734 Omaha,__ _ (Nebraska)- _ .. _ 9,704 SI. LouIs (See (c) belol'/). ... _ 18,915 SI. Paul___ _ _,_,_ (Minnesota).---------•• _ 23,399 

Wichita_. (Kansas).---- __ 13,383 PhU.d.lphianglon _ 15.2,518 

Baltlmore__ (Maryland and D.C.'. __ 29,902 Camden_____ _ (See (d) below) .. _. _ 12.203 Newark (See (d) belowL .. . _ 28,925

Philadelphia (See (g) below)--­ 37,585 Pittsburgh. . (See (g) below) _ 29,121 Scranton. ._ (See (g) bElow)--- •..__ 12,519 Wilmington (Delaware)- _ • ..­ 2,263 San Frand!lt;O re-gion.. __ & • __ 113,92.t Anchorage (Alaska) •. 2,130 

Boise_ (Idaho)------­ 5,272 

Helena____ _ (Montana)--­ 6,827 Honolulu__ _ (Hawaii) . •• _ 3,666 Los Angeles__ _ _ (See (a) below • •• 52,664 

Phoenix._ (Arizona)-------.-- ._._ 7,831 

Portland__ _ (Oregon)--- _ 13,612 

Reno____ (Nevada)---- • 4,690 Salt Lake City (Utah)- _ 5,912 San Francisco (See (a) below)- __ 47,793 Seattle. (Was' i ,ton) _ 23,527 

•• ._ . ••. • .'__ _ ._ 3­

._... 

------5- -----5 - 10 

,_.__ 1 

--- 5 3 

---''18---- 5 

1 

10 

3 

4 

14 

4 

4 

3 

2 

1 

• .__, 

2 

1 __ . 

.____ 

1 

15 

l 

I 

S 

3

, 

20 

3 

12 

4 

._ 

1 

I 

3 ,. .__ 

.__ 

2 

1 

.__ 

1 

_._ ". 

12 

6

1 

1 

6 ._________ 

8 

3 

3 

2 

22 

'3 

1 

2 

16 

1 

1 

.... ._ 

•I 

2 

U 

9 

3 

6 

5 

1 

21 

------- r 

14 _ 

UO 

37 

7 

14 

49 

27 

75 

31 

192 

2 

128 I 

37 

1 

5~;

169 

202 

94 

62 

418 

128 

169 

22 

90 

1 

8 

195 

34 

35 

41 

8 

60 

17 

us 

10 

36 

24 

82 

13 

2U 

26 

I 

17 

2 

13 

53 

15 

22 

53 

32 

112 

57 

11 

43 

49 

2 

1 

9 

9'0 

10 

1 

1 

25 

248 

58 

95 

22 

I 323 

156 

9,180 

1,428 

639 

978 

284 

1,055 

4,093 

703 16,129 

388 

7,655 517 

5,259 

504 

5~:~:

15,687 

16,588 

13,891 

4,517 

29, OU 6,628 

14,066 

5,295 

1,984 

648 

390 

12, 282 

1,363 

2,262 

1,764 742 5,197 

954 

'19, lilt 

6,018 

7 915 5.428 

7.500 

4. 118 

1',216 905 

694 2,637 

1,907 

1,030 

2,356 

1,737 

3,944 

2.852 

1,213 

42,31' 

5,573 

4,013 

10,072 

8,921 

8,712 

4,231 792 46,158 709 

749 1,805 

1,011 

15,913 

2,363 

1,714 

1,210 

185 15,059 

5,440 

12 8 53 _ ,_______ 1 8 4 " __ 7 

2 

7 

3 

3 --""\' 23 2 1ft 9 10 1 2 "l;:, ----.­ --''695­ 5 50 ." 

- -i' =:-:-::=:==-= ---'-J- . __ 9 ""'" 3 ----i I.. --- 46 ----2' 2

1 6 7 CO2 U I 113

.._. (; 5 5 7 79 11 2 33 

I 380 1 II

6 3 10

n 1 U 71 8 ._ 5 28 7 15 

1 -- --T 4 5 23 

1 

I ---2' _-= . 1 9 

12 2 6 

__________ 1 

12 1 

1 _______________ ._. 

• 

223 289 

29 237 

87 2 61 9 44 4 2 36 

1 UO 5 

222 1 

13 

2 

3 

53 

53 

1 

2

2 

10 

1 

3 

3 

6 

1 .... 1 

• 

3 

3 

2 

11 

5 33

11 

11 

9 

2 2 

13 1'1 

10 2 51 2 19 6 55 3 7 

7 76 

i 

3 

1 36 2 13 I 4 

13 165 

2 1 

1 5 6 70 4 58 

II 

3 

lOll 

I 

49 

1 

46 

6 

Totals for States not shown above 

(a) California.. _ 100,457 5 21 571 30,972 5 95 (b) lUinoiL. •• •__ . _ 65.609 5 5 231 20,204 11 7 89 (c) M',"ouII • __ 30,649 4 2 75 6,300 131 6 1 45 (d) ew Jersey ._ • _ 41,128 15 9 54­ 14,085 13 3 7 75 (e) New York___ •• __ . _ 130,954 15 4 165 29,979 8 10 13 142 (I) Ohio .. _. • _ 62,519 8 4 297 20,694 15 4 10 2­ 43 (n) Pennsylvania ._ 79,225 5 6 52 21,864 5 4 5 4 72 (h) Texas .. _ 55,414 3 76 4,026 12 I 2 3 22 

- -~"---- --- .. -­
------------

------

_ _ _ _ 

---

Table 14.-Number of occupational tax stamps issued, covering fiscal year 1961, or portion thefeof, by class of lax and by Internal revenue regions, 

Internal revenue regions, districts. and States 

(States represented by single districts indicated in parentheses; totals for other States shown at bottom of table) 

United States? total 

Atlanta rtt!Iion 

Atlanta_ (Georgia). _ Birmingham. (Alabama)___ 

Columbia (South Carolina) ..

districtl, and States-Continued 

. Wines 

Wholesale dealers Retail dealers Brewers 

-----r--.---I-----,------I-----.-----­

Wines, $255 

(12) 

113 

1A 

Greensboro (North Carolina)___ __ _ _
 Jackson___ __ _ (Mississippi). • ••
 

Jacksonville ~IOrida)--- •••••
 Nashville •• (ennessee) ••••• 

8odonreglon . ._. __ .. 1 

Augusta. ------•• - ( aine) -----------­ Boston __ • __ (Massachusetts)___ • .____
 

Burlington. (Vermont)--- ._.
 Hartford__ _. (Connecticut)_ __
 Portsmouth (New Hampshire)_.____
 

Providence • (Rhode Island)
 

Chicago ",glon 

Chlcago__ (See (b) below)___
 

Detroit. __ (Michigan).. -­ Milwaukee_ __ __ (Wisconsin) .. • __ ._
 

Springlield. _ (See (b) below)-------.-•• __ •
 Cincinnati reglon ._ __. 12 

Cincinnati____ _ (See (I) below)- _ 3 Cleveland __ • (See (f) below).. _ ._ _ 

Indianapolis_ _ (Indiana) .. _ _ _ ..._ 2 Louisville (Kentucky) • 3 

Parkersburg .. _ (West Virginia) • 1 

Richmond____ .._ (Virginia).__ 3 Da'lfl,egion ._____ _ ._____ 1 

AlbuQuerQue. • (New Mexico)_ • ._. ... Austin • • • _ (See(h) belowL. _ .__ __ 8 3.066 __ . __ . ._ Dallas (See (h) below).____ •• • ._. _ 

... • __ • 495 _. . _ Little Rock (Arkansas) .__ 26 ._____ 243 __ . _. . 

New Orleans. .. (Louisiana) .___ I • • __ • _ Oklahoma City (Oklahoma)... ._._ • .______ 8 __ 

H..... 01 City ,....'on	 U 51 2Z UI 17 A/banr	 . _ (See (e) below). ._ • _ I 2 B(Qoklyll .. ___ _ (See (e) below). _ 8 _ _ 0 45 4 Buffalo __ (See (e) below)- . 1 • 

Manhallan (See (e) below) __ • ._. 39 Syracuse (See (e) below) _._._._. Omaha 'oglon ._. • •• _ 4 2 o	 Aberdeen __ _ (South Dakota) • _ _ Ctfeyenn"-- • __ ... (Wyoming) • .___ __ • __ • 

Deliver _ (Colorado). •• 1 Des Moines •• (Iowa) ••__• .... 0 

FKargo- C· - - ..----- - «SNort(h )Dabkolta»____ ..- ------.-. i- -.=-.=:-:­ ansas ,ty ._ __ ee c e ow .___ _ _ Omaha (Nebraska)- • • .. • 

St. Louis (See (c) below) • 2 

St. Paul. • (Minnesota)___________ 1 _ Wichita.. (Kansas)_ __ __ • • 

Phnadolphlaregon ••• 2 

Baltimore _ _ (Maryland and D.C.). __ _ 2 Camden__ __ __ (See (d) below) .. __ 

Newark_ _ (See (d) below)________ __ •__ ....
 Philadelphia (See (g) below). • ._. •
 Pillsburgh (See (g) below) .___ __. _
 

Scranton ._ (See (g) below)_
 Wilmington (Delaware).. • __
 

S.n Francisco retion _ _ __ ._______ 17 60 

Anchorage_ (Alaska) _ ••• __ _ _ -­ Boise _ (Idaho). • • •• 

Helena __ --- --- - (Montana)- - -- - '--'-'-1 -- \' Honolulu .. (Hawaii)__ .. ••• _ • • _
 Los Angeles. (See (a) below) • _
 

Phoenix_ _ __ (Ari~ona). 1
 

Portland _ (Oregon) ._	 3
 Reno .____ (Nevada). _ _ _
 

Salt Lake City (Utah) .. • •
 

San Francisco._ (See(a) below)_______ _ 17 55
 Seattle (Washington)_ _ _ --.---­

I 6 78 • __ 14 3

2 8 199 _ 28 

I 

._.___ __ 1 __ .__ --- _ 

• •__• 28 •• • -3 ••• __ 167 _ 2 

1 --------2· -------­ 3 _ •• ...--.-­ 3 3 4 3 3

._ - '-

13 ._... __ --­

5 542 _ 41 ._. 540 _ 7 3	 _ 3 • __ •• _	 5 • __	 15 

7 

4 

2.Q 3,349 32 -.--­ 1 _ 

2 -- -. _ 

32 

_ 

I~ 1,489 --.--.---­ _ __ __ • -- _ 

25 1,666 - ---. 

Wines and Less than 500 500 barrels beer, $255 

Wines, $54 Wines and beer, $54 barrels, $55 or more, $110 

(13) (14) (15) (16) (17) 

27,1t2 230 

139 tIO 7,803
 18 31
 843 •

1 _. _._. . _
 

27 3
 1,319 50 45 1,587 .___ _ 1 101 . 44 3,953 • 

32	 .. 997 9 

----. -.-- ---•• -·-1··----.. -­ .-_-__ ._._. _. -- .- -7-­ 2 __ __ • 52
 

29 ." 929
 .. __ 9
 _
 .. 

1 7 1 161 2,493 ._____ 60 _ ._____ 25 _._~.__ 11 

96 2,456 __ .... 10 4 4 35 

1 8 _.. 4 n l' 7,US 2A 

10 4 1,121 4 2 577 8 

12 2,399 4 _	 5 

_..	 423' _ •• _ 1 

47 3.295 ._. __ .. 2 36 3,04 __ 16 

2	 2 • ._. 

c:> 

Beer 

Wholesale 

dealers, 

$123 

(18) 

Sll 

60 

57 

43 

76 

71 

114 

90 

227 

61 

64 

5 

53 

29 

15 1,088 

308 

172 

474 

I 4 

743 

68 

123 

226 

119 

117 

90 

815 

3 

414 

149 

38 

106 

105 

7U 

98 

280 

126 

106 

101 

1,OU 54 

50 

76 

189 

46 

79 

86 

78 

327 

107 

2,314 122 

78 

120 

865 

874 

2~4

11 

673 

11 

71 

76 

14 

142 

10 

43 

22 

45 

192 

47 

Retail I Temporary 

Retail dealers dealers in dealers, at large, IliQuors (beer $24 $24 or wine) $2.20 

per month (19) 

147"n 

24,294 

1,870 

2,758 

3,723 

3,859 

3,092 

4,237 

4,755 

6,964 

2,539 (\> 243 .... 3 291 "l 

1 2,082 

735 

374 

590 

383 

792 

330 

329 

56 

76 

1 1,554 

----.-­42 

40 

I. 461 

II 

'.4 97 

35 

326 

77 

409 

155 

15 

31 

7 

14 

7 

19 

4 362 

263 

33 

1,495 

619 

320 

503 

5 

I 

8 

39 

941 

6 

25 

158 2 

89 

11 

11 

612 

27 

(20) (21) 

182 9,In 

>0, 71 

;::.. 36 

S§'" . ----- -­ 10 

1 >:: 24 "" .. ---- ... . --.. S31 ::tl 144 

195 .-­ 2,543 

1,505 

38 

5,152 1 345 

187 

4,318 

302 11,925 

702 

593 

427 

2,39£ 

3,871 

3,936 

27.826 16 

14,723 

3,029 

I. 642 3,809 

4,607 

1 

.._-. - .. ---- --.~. -.­

---- --. '" 

II 

----.- 9 

2 

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

--.-.-- --­

'26,sn I 48 J.429
 

~, 862.
 48 

3,969 

7, 057 

3.060
 

25,282
 

1.371 122 1,179 

4,726 

339 1,640 

L 224 

3.121 

7,95J 

3.609 

4,310 

2,259 

62 

242 

912 

Ii 

1 

104 

12 

89 

3 

525 

299 

11 

15,803 

23 1,441 

510 

34 

4.841 

377 

1,906 

160 

1,298 

3,840 

1,373 

-_........!.._--~---'----!-_----_.!.....--

Totals for States not shown above 

(a) California .. (b) Illinois ._ 

_ 17 

4 55 1 

25 

1 1.66633 .. 

__ 12 

15 

33 

442 8,681 647 

170 1,118 

(c) Missouri • _ 3 1 5 7 157 4,761 15 381 

(d) New Jersey __ (e) New York .. _ 6 

48 5 3 22 130 

8 

17 

198 

711 

304 

26,377 

92 

48 

823 

944 

(f) Ohio .. _.. _ 

(g) Pennsylvania (11) Texas_ •. • _ 

3 

2 12 iI 

1,698 

2 

3,561 

12 

26 

6 

191 

1,983 

563 

1,295 

1.736 

17,752 

659 

14 

82 

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

---

--- ---- - --

---

TobIe 14.-Number of occupational tax stamps inued, covering fiscollear 1961, or partlon .hereof, by daIS of tox and by internal revenue regions districts, an States Continued ' 

arcotics Marihuana 

Manulacture", 

imporlers, and 

(States represented by single districts indicated in parentheses; 

Internal revenue regions, districts, and States 

compounders of 

totals for other States shown at bottom of table) opium, etc., 

$24 

(22) 

Dealers in 

Wholesale Retail Practi­ untaxed 

dealers, dealers, tioners, prepara· 

$12 $3 $1 tions, 

$1 

(23) (24) (25) (26) 

-------------1----,-----------­ ______ ..... a .. United Sta.... 'ot•• 151 1.18' 1----1 

Atb,,'. rt9Jon __ .~ 1 US

Allanta ••• (Georgla). __ • _ 34

Birmingham ._. (Alabama). •• 14 olumbia . _ (Soulh Carolona) .... ._. 11 Greensboro • .. _ · (North Carolina). • _. 17 

Jackson _ (1isslssippi). • 8 Jacksonville __ (Florida). __ _ 27 

34 Bodon Teg on ­ Nashville (Tennessee) .. 4 

6 59

Augusta .. __ (Maine) • _ _ __ 5 Boston . • _ (Massachusetts) • _ 37 Burlington .. _ ._ (Vermont) ,_,_ • __ 2 

Hartford. __ (Connecticut).___ _ .... ... 15 Porlsmouth. _ (New Hampshire) •• I 3 

Providence ... _ · (Rbode Island).. ... I 7 

Chicago ,eglon __ ,,_ 22 151 Chicago • __ ._ ( ee(b) below)_ •• 6 51

Detroit .• (Mlchigan)_._ 10 66

Milwaukee_ _. (Wi:oconsin) _._ 3 17 Springfield __ •• _ (S (b) below) •__ 23 Clnclnn1lU , ..Ion _ 3 

21 150 

,nClnnati. __ iSee(l) tie'ow) __ .. _..._:-=-~~~ 7 32 

Cleveland _ (See (I) below _ 8 40 · (Indiana) .. _ • • Indianapolis __ •• 7 39 louisville.. __ (Kentucky) _ 17 

Parkersburg__ __ • (West Virginia)_ 9 Richmond_ _ (Virginia).. 13 Da".' regJOf1 _ 100 

Albuquerque.____ New MeXlco). __ 3 Austin (See (h) below) _ 25 Dallas _._ (See (h) helow)••• __• _ 31 little Rock .. (Arkansas)_.. __ __ _ __ ._. __ .... _ 6 New Orlean5._.____ (louiSlana)•. __ _ .__ 6 18 Oklahoma City. (Oklahoma).. .... .. • _ 17 

56. 195 

6.U5 

1,174 

894 

651 

1.031 

585 

1,510 

1,040 

3.910 

258 

2,086 

106 

961 

162 

337 

6.158 

2,463 

2,411 

1,166 

718 &.136 

1,062 

1,668 

1,357 

823 

368 

858 

5,664 

287 

1,536 

1.373 

589 

1.025 

854 

2S4. 560 1.600 

71.924 m 4,296 14 

3,073 14 

2,245 5 

4,646 130 

2,048 23 7,126 11 4,490 24 

2S1 

1,415 

20. '99 1 

10,991 15 637 77 

5,355 117 910 2 1,490 39 

32.543 165 12. t43 52 

11,595 58 

19 

3, I7l 5.634 36 

29.5U 353 

5,609 29 

8,132 28 

5,801 35 

3,106 48 

2,089 

4,851 213 

23.644 101 1.014 9 

6,905 28 

6,252 25 

1,975 8 4,225 12 3,273 19 

labora­ Producers tories, Manufac· Dealers, and Practi· laboraetc., turers. $3 millers, tioners, tories, 

$1 $24 $1 $1 $1 

(27) (28) (29) (30) (31) (32) 

6 15 1 

28 1 1 

2 I __ ._ 6
 

1
 

7
 

6
 

6
 

35
 

1
 

17
 

2
 

12
 

1
 

2
 1 

23 2 43 1 5 .. 3 1 12 _ 2 

I __ . ._ 2 

6' 1
 38 2
 

4 I
 17 I
 

6
 

4
 

7
 

14 1
 2 __ . •
 

2 _. __ . A
 

2
 

I I _ 7 I 

92, 6.606 H. Yule ell" _Ion 21~ I Albany (See ('J beloN)_. 

Brooklyn _ See (e) below) _ 

Buffalo. See (e) below 2 ManhaU'n .. _....__ _ See (e) below)_ _ ••• _ 9 

Sy,.cu;e. (See (e) below).._ 2 

°"A~~'d':~::" _ --=----{Souili D~koti) • _ • • •U. 

Cheyenne.._ (Wyomll,g)_ ------- Venver. ••• (Colorado) __ ••_. ..-. _ 

Ves Moines __._ (lowa)__ .----.--­

Fargo - ----­ (North Dakota) -.----­ -------­ 1 Kansas City _. (See (c) below) __ 

Omaha.. _ (Nebraska)____ _ _ I 

St.louis. • _ (See (c) below)._______ _ 8 

t. Paul_ _ (Minnesota) _ 1 Wichita__ (Kansas) .________ 2 

PhO.d Iphl. region. 32 

Baltimore. (Maryland and D.C.) ._. Camden (See (d) below) _ 

Newark_. (See (d) below)_ __ .__ 8 

Philadelphia _ _ (See (g) below) ._ _ 17 Pillsburgh _ _ __ (See (g) below). • 1 

Scranton (See(s) below) ._. ---. __ • - .. ._ 

Wilmington (Delaware)_ • • - --.-­

S..n F,-an"lCe region_____________ _ 14 Anchorage_.. Alaska). • • 

Boise._ _ .__ (Idaho) -. ----.-­ Helena _ _ _ ( ontana).
 

HonolUlU. .. _ Hawaii) _ __
 

los Angeles .. (See (a) below)
 

Phoenix. (Arizona) _
 

Portland (Oregon)
 

Reno_ • (Nevada) _
 

Salt lake City_ (Utah). _
 

San Francisco_ (See (a) below).
 SeaUle _ _ __ (Washinglon)_
 

9 

24 

12 

39 

8 1U 

3 

2 

27 

30 

3 

21 

9 

17 

18 

14 

U4 

27 

3 

25 

63 

16 

8 

2 

U6 

1 

2 

4 

8 

73 

9 

7 

5 

10 

38 

29 

5 

2.690 81S 

2,032 

475 

s.ns 

252 

123 

689 

804 

193 

630 

597 

812 

987 

748 

1.009 

1,093 

601 

1,392 

2,091 

1,305 

399 

128 

1,392 

41 

239 

271 

83 

2.485 

408 

565 

120 

262 

1,880 

1,038 

35, '8 

2,939 

13,4C7 

4,847 

15.825 

2,922 

2S.86S 733 

416 

3,331 

3,768 

706 

2,921 

2.108 

3,883 

5,166 

2,837 

36.918 

6,918 

2,755 

7,574 

11.367 

5,874 

1,882 

609 41.234­

174 

892 

951 

863 

19,621 

1,802 

3.226 435 

1,413 

13,148 

4,709 

2 

2 

23 

1 31

1 

I 

30 

3 

20 1 

1 

32 

9 

~o \ 53 

13 

us 2 

lfol 

32 

4 

16 

131 

10 

3 

34 

69 

13 

4 

4 

101 

-2 

26 

43 

3 

9 

1 

I 

19 

3 

:g 

3 

8 

3 

76 

6

3 

33 

24 

9 

I 

59 

3 • 

. __ .. 

_ •••••• _=.__ _ 

A 

--·--1·-·· 

--'---1' ------­

1 . 

3~ ----­

2 

2 

115 _ 

•I _1 \=.~ 1

1 

-2 

Totals lor States not shown above 

8 III 4,365 32,769 62 46 J . (a) California. . .. ._. - -. (b) IlIlIIois ____ • __________ 9 74 3,181 15,314 88 29 3

_. - ---­ 38 J. 442 6,804 64 9 2 (e) Missou" 9 ----~ --­ ._. 9

4

3 

I 

11 28 1,993 10,329 37 36 2 (d) New Jersey _ - - ..--- ... 

"- 6

5 

(e) New York 21 92 6,606 39,980 127 51 2 i ._-------­ - --- -­ 15 72 2,730 13,741 57 21 .. (I) Ohio. -­ 3,795 19,123 86 33 2 3 18 87 ----_. 2 

. ---- 5 -­ (g) Pennsylvania. . ­4 1 -- ----- :l 56 2,909 13,157 53 ------ -~--

(h) Texas ­
•• • • 

__

Table 14.-Number of occupationclltax stamps issued, covering fiscal year 1961r or portion thereof, by class of tax and by internal revenue legions, 

dbllicts, and States-Lontinued 

Internal revenue regions, districts, and States 

(Slales represented by single districts indicated in parenlheses; tolals for olher Slales shown al bollom of table) 

Unlted Stites, tot.1 

AUant. region __ 

Allanta_. _ (Georgia) .. Birmingharn.-.----_ (Alabama). • Columbia _ _ __ (South Carolina) .•__ .. __ Greensboro •• _ (North Carolina)._____ 

Jackson ------- (Mississippi) ---..---­ Jacksonville_ __. (Florida)_. -_._. __ . Nashville__ ----. (Tennessee). __ .••• Botton tag'on ---

Augusta-- . . (Maine). ---- •••__ Bostoo______ __ (Massacllusells)__ ••• __ Burlington-. (Verrnont) 

Hartford .. -- __ (Connecticut) .____ Portsrnouth._.__ (New Hampshire)._._. 

Providence. (Rbode Island) __ . Chlg,go .region ---. --- _ __ ChICago ._. ._ (See (b) below) ... __ 

Delroit.. ---_ (MIChigan)... __ .• __. 

Nalional Firearms Acl 

Manufacturers or importers I Dealers, Pawn­ olher than brokers, pawn­ Class 1, Class 2, Class 3, brokers, 

$500 $25 I $300 Class 4, 

$200 

(33) (34) (35) (36) 

5. _ __ 

_ 

_ _ 

• ._.. • • _ __ . •__ • ._. •• . ._ _•. _ _ . .__ _•••. 

-. --.--------- -.-_••• . __• 5' . __ • . . __. ._ 

3 2 ._____ 

__ _ . .. _ • ,,_, __ . . ._. .. . ••• , __ ••• 

: ._.- __ ...-.­ •• 1_.-_--_-_-_-_-_­ . 

. . __._•• _. •. _ .•. ;2 1 _ 9 __ __ 3 

1 ._._ 2 , 

Dealers, 

Class 5, 

$1 

(37) 

213 

57 

5 _ 4 

15 

1

22 

10 

• 

5 

1 

._.. _ 

__.. ._2 

__ ._. _ 14 

1 

8 Milwaukee_._. (Wisconsin) .__ I • ••.•__ 3 

Springlield_._.__ (See (b) below)._.____ 1 ._ •• I Cinci"hati region______ _ __ 1 _. ._.___ " 

Cincinnali. ...__ • __ (See (f) below) - _ __ • •• _ 2 Cleveland. (See (f) below) .._..~_ .. _ ._.....• _.__• _. • __ ._. _ Indianapolis. (Indiana) .... _._ .____ _ . __.. _. . ._0. __ . . .•__ Louisville ..._ (Kentucky) __ ._._... .•.. . __. •••. •• __ Parkersburg. (Wesl Virginia) _ .._.__ .. _ ... __ . . __•. 3 Richmond (Virginia).. .._ . I _.. _ DaUa5region ._______ __ _ .• •• _ 7 

17 Albuquerque_.. .. (New Mexico).. _	 .. __ . 2 Austin. __ ... _ ._ (See (h) below) _ _ __ .. ._ ..• _. 1 Dallas _.. __ . (See(h) below).. . . __ . .. __ ... _.......
 3 

~~f:h~~:~i;~:::~~~~i~!~~t~~~~~:~: :~:-~ ·~~~~~~~~:::I::~::::~:::~:~::--::~:: 11 ::. 10 

1 __ ••__ ..._ • 

2. 

1,975 

292 

405 

482 

387 

409 5.n7 

319 

112 

389 

1,232 

372 

489 

651 

638 

758 

757 

S,Ul 

798 

441 

I. 286 

968 

1,141 

431 

46 3,7'£1 76 

228 

215 

188 

859 

193 

386 

61 

199 

803 

519 

, 

2. 

13 

3 

17 

Hew Yo.- CUr region_ __ 2 5

Albany (Sea ce; below)_. _ I 

Brooklyn __ .. 0--- (seate berOw1.- ......­ ..••.--.-­ .. ---­ .. -.- •••••..... Burlalo _ {See e below. _ __._ •••••• Manhaftan. (See oj below _._ I Syracuse (See e) belo . . _ Omabar_gloo__________ . .••• • 

Aberdeen _ (South Dakota) .••• Cheyenne_ •• CWyorning) .. _ ......_.. Denver _. . ._ (Colorado) ._. 

~:;g~-o~ne~::==:.--.. ~~o~~~ Dakola) .::::" :~:_:~:~.:: .. -­ .. ---- ......-- KansasCily • (See(c)below) . __ ._. _ Drnaha...... • (Nebraska) __ ......•• .. _ __ _ 

S! Louis . ._ }See(c) below)______ _ ..._. ~_:=:-:==_ :"::.:--::-. :.:--:._...: .. 

~ic~~t~I~~.~:~~:::-- ~~~~:;)ta~_....:_--:: :-:'=-::-3' _ _. __ ••.•. .. 

PhllB~it~~~I~r",9lo~~~:... ·(Ma.Yian.j'';o,ro:CI::_ 2 ~~ ..:::---=-:= .._ _._ Camden... _.. (See d) below) __ .._.. __ .. --.. ..--_..--­ - -- ••-­ ---2 Newark _.__ . __ (See d) telow) .... __ .• .. _.... _._ _._. 

PhiladelphIL..... }See (g) below). .. -..... --.-------­ - --... - -­ ...... 1 

~~~~gr{:n~~~~::::::: ~~~U;H~:~~~~:~::~--~ .--.-:~-~::. :::~:::=:: ~:~:::::~:: ·--···-21-:: ~._ ..__ SIIn FranGI.coregion.__ ••• 3 __._ ._ ...__ • __ • 28 Anchorage. (Alaska) - ••• _._____ • • __ 

Boise. _. _. (Idaho)____ _ •• __ .______ ._.__ ._. _. __ .. Helena. __ . (Montana)._ ___. __ .. ._.__ __ .... _ ._._. 

Honolulu .. ,.. (Hawaii)_.. --------.-. --­ ...- .-­ ..--..-.--­ --­ -.-----­ 2 Los Angeles... ..__ (See (a) below) __ . . --------- ­ 21 5 

~~~~~~~:::~.~~~::::: ~~~~~ii~-=:::::::::::: :=::::::=~ ::.~=~::::- -- .:.::=:~: .::::-::__: 

Salt Lake City. ._ (Utah) • __ .. .• • .. _. ._ .. San Francisco.. . (See (a) below)_._. _ _ .••_._ __.______ •• _ • _ Seallle_... .. (Washinglon)- ..-. . _.. _.. __ 7 

TDlals for States not shown above 

U,.U 

4,468 

6, ass 

4,332 

4,390 

4.168
 

31,180
 1,&01 

1,522 37 

983 165 2,403 80 

4.830 50 J. 163 2 3,291 68 2,997 105 5,471 390 4,896 22 3,624 348 

45,.&0 5,37. 

7,592 3,991 

3,730 66 

7,431 4 11,336 703 9,932 522 

4,879 73 

560 15 

6,296 3&, rs~ 348 1,629 8 2,063 349 

195 

8,094 

1.172 22 

2, 166 255 3,108 900 1, 088 1,336 

1,380 403 

9,975 23 4,750 2,457 

\ 

2 

28 

2 

3
 

20
 

1 usI.2
 

139
 

10
 

20
 

22
 

49
 

8
 

19
 

35
 

312
 9
 

2
 

34 VJ.,.,. 

..... 89 

47 

156 

.... 

-. 35 

-.<-<­ 4,&12 

153 

3 2...... 548 

3 "l 13 :;::: 16 0­

-... 57 

164 i>; 

696 

15 

2.944 

m~\\i;~~:::::::::::=: _._._._~ h:~::~:. =:=::::~:: __ ._ .. 2; . .__ (d) New Jersey ..... _ . __ •. _. • .. _ 

2 i~? ~~~yor~..••::::..:..:.: .•-•• ---~- ::~.:.::=~: -==-=-:::.~: ~ I I 26 (g) Pennsylvania _... 1 .. • __ •• _ 10 (h) Texas_... . . ... _ 4 

1,662 

2.298 

1,127 

1,727 

1,975 

2,062 

2,540 

1,729 

18,069 

20.377 

8,762 

11,161 

23,413 

17,690 

26.147 

10,983 

45 28
 968 428
 

458 30
 70	 36 

2 -·-·T 28 816 I 327 

1.298	 292 

99 283 

I-' 

,..,. 
142 A nn Hal R elw'/'t Statist'lr.al Table8 1,13 

Table 15.-Appellate Division processing of protested income, proRts, estate, and gift Table 16.-Appellate Division processing of protested Income, prollts, estate, and gift 

tax cases prior to issuance of statutory notice of deficiency (pre·90·day cases) tax cases in which statutory notices of dellciency were outstanding (90.day cases) 

A. Progress of work A, Progress of work

Appellate determination (thousand dollars) 

187,252 

Amount stated in revenue agent's report (thousand dollars) 

Number of --_..-._-­ cases Status Deficiency in Penalty Overassess· tax ment 

(1) (2) (3) (4) 

Pending in pre-90-day status July 1. 1960 _________ ••••• __ . I 10,564 ' 596, 733 I 154, 723 

Net receipts from district directors during year .. ___ ...... __ • 14,871 486, 170 114,347 = J!!!!l :==:.= Processed during year, total_. ___ ... __ •_. ------• .:>~. 15,724 480,361 148,047 

Agreed. __ _.. .... ___ .... 10,939 302,524 134,299 Unagreed overassessments and claim rejections .. _.... __• 729 260 6,280 Statutory notices issued--transferred to 90·day status __ • 4,056 177,577 7,468 

Pending in pre-90·day status June 30, 1961. ... __ . - -­ 9,7JJ 602,541 121,023 

r Revised. . 

: Change ill reporting procedure on July 1, 1960, transferred 367 overassessment cases from pre-90-day status and 

associated them with related deficiency cases in 90·day and docketed status. 

35,357 

19,778 

23,252 

12,098 

22 11,132 

=-= 31,883 

B. Results obtained in cases processed 

Amount stated in statutory notice 

Number of (thousand dollars) 

cases - -­ Status Deficiency in Penalty Overassess­ tax ment 

(1) (2) (3) (4) 

Pending in 90-day status July 1, 1960 .. _____ .... ____ .. _... 1,268 64, 553 5, 643 1 1201 

Net receipts during year, total.. _____ - . ---­ - ----_. 4,410 200,912 11,389 8,386 , I 

Statutory notices issued by A~pellate Division '. 3,883 188.247 10,935 8,374 

Cases resulting from district irectors' statutory notlces_ 527 12.665 454 II 

====­ -­ Processed during year, total. __ -_ .. _­ ._-­ -----­ 4,467 181.838 12,007 2,487 I 

~:t:~rted·_- --••---::: :::•• -­ - ­ -::: -: :::::::.:-::..-. 660 9,684 156 75 987 19,523 1,248 52 Petitioned to the Tax Court-transferred to docketed status_ 2.820 152,632 10,604 2,360 -. -"--­ Pending in 90-day status June 30, 1961 _________ - '­ 1,211 83,628 5,025 6,099 

I Change in reporting procedure on July I, 1960, transferred 367 overassessment cases from pre-90-day status and 

assnciated them with related deficiency cases in 90-day and docketed status. , Difference from table 15-· transferred to 90·day status--is caused by cases being combined or spilt for the purpose of 

issuing Ihe statutory notice, cases in transit, etc. 

Number of 

Method cases 

Deficiency in I Penalty Overassess· tax 

Processed during year, total. .. _ ....._ ._... -- ,_.­ 15,724 335, 512 

Agreed ..... _____ ...... _ _. ___ 00_ _ 10.939 147,910 Unagreed overassessments and claim rejections_.. _____ 729 349 Statutory notices issued-transferred to 90·day status .... 4,056 

Appellate determination (thousand dollars) B. Results obtained In cases processed 

ment Number of 

Method cases Deficiency in Penalty IOverassess­ 14,298 145,276 tax ment 

3,556 131,148 26 5,753 Processed during year, total ___ .....................__ .....
 4,467 177,823 ll,909 2,540 10,716 8,375 

Agreed ___ .. __ ... _____ ...___________ ...... ____ .. ___ 660 5,669 58 128 Defaulted___________ .. _.. ________ .. ____ ....._ 987 19,523 1,248 52 Petitioned to the Tax Court-transferred to docketed status_ 2,820 152,632 10,604 2,360 
----

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

Pending in docketed status June 30, 1961.... _... . 9,957 808,646 95,050 4,757 

Basis of closing Deficiency Number and I Change in reporling procedure on July I, 1960, transferred 367 overassessment cases from pre-90·day status and penalty associated them with related deficiency cases in 90-day and docketed status. (1) (2) , Difference from table 16- transferred to docketed status-is caused by excluding dislrict directors' slatutory notices 

considored by Appellate in 90·day status, cases in tran,.it, etc. 

8. Results obtained in cases procnsed TQlal..___ .._____. ______ 6,826 309,576

Appellate determination (thousand dollars) Dismissed 330 8,297 Decision on merits'- ,____ 4 882 41,572 

Agreed seUlemenL_":'::::::::::: 

Number of .. _ 5,614 259,707 Method cases I I
 Deficiency in Penalty Overassess· tax ment 

Processed during ye,ar, totaL ... ,...••• '"-''''' -.. --- 6,983 li·40,02!...r4, 855 7.365 

Agreed-stipulated.. _..__ __ _ 5,614 80,751 ll,123 6,813 

Dismissed or defaulted_ __ __ . __ ••• 330 6,312 1,924 22 

Tried befare the Tax Court on merits '... .... 1,039 52,958 1,807 530 

I Represents amounts pelitioned. Results as to decisions rendered by Tax Court durinR the year are shown in table 19. 

1-1:4 Llrl1l:/l Report Statisllcal TableS! 141': 

Table 11.-Appelfate Division processing of Income, profits, ntate, and gift tax cases petitioned to the Tax Court (docketed CQses) Table 18.-0ffiu of ChieF Counsel-Processing of income, profits, estate, and gift tax cases in the Tax Court 

A. Progress of work 

- Deficiency in dispute Number at (thousand dollars) Amount petitioned (Ihousand dollars) cases 

NU;~~:; Stalus of ---- ---­r--_.­ Tax Penally Status Deficiency in Penalty Overas'ess.
 tax men!
 (1) (2) (3) 

(1) (2) (3) (4) 

12,591 842, 152 100,534 

Filed or reopened dUfing year. --.-•••__••_..._ •••••••••• _.• Pending July 1,1960_.______ ••-..---.--••..-- ...- ...---.-. 5,368 321. 719 26,050 Ponding in docketed slatus July I, 1960.......... •... ll,489 765,086 100,534 14,644
 Di,posed of during year '_ '. _. ___•••_ ...... __ ._._____ •___ • 6,826 278,042 31,534 Pending June 30, 1961 .___." _ _ ______________••• __ ll,133 885,830 95,050 Net receipts durlngyear,lotal...... _.. ._ ...••.••• 5,451 332,987 27,858 2.675 

Petitions filed in responseto-- -, ,-­ For analysis at disposals, see table 19. District directors' statutory notice. _.. __. 2,895 179,400 16.832 335
 

Appellate Division's slatutory notice' ... '•••. __ ._ 2.556 153.587 11,026 2.341
 

Table 19.-0fFlce of Chief Counsel-Results obtained in income, pronts, effale, and Processed during year, total._ . .___ ._ .•__•••••... 6,983 289,428 33.342' =~ gift lox eases disposed of In the Tax Court 

Agreed-·stipulated. ...__ ._ .. __ " ..•••. __ 5,614 230,ll7 29,590 2,004
 

Dismissed or defaulted •... -... .,.. 330 6,353 1. 944 28
 

Tried before the Tax Court on mc"ts.. _..... _._... 1.039 52,958 L 807 530
 Amounl in dispute Amount approved Saved or recovered 

Overpay· Deficiency ment and 

penalty

(4) 

(Thousand dollars) 

78, 010 

(3) 

ll6,855 

112 8.236 

7,954 16,745 

69,944 91,874 

Overpayrnent
 Amount 

(5) (6) 

5,767 189,098

1 8.347 

507 24,192 

5,259 156,559 

Percent of amount in 

dispuIe 

(7) 

48.8 

99.3 

48,8 

.7,5 
-- ---

--- ----

--------

----

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

147 14.6 8tati.~tical TlllJlC8 

Table 22. -Office of Chief Counsel Civil tax cases decided bv the courts of appeals 

and Supreme Court 

I Against Parlly for 

Total and partly 

Court 

For the Ihe against the 

Government 

Governmenl Government 

g~~t~c~fccra7~s-_:: :::~:: :~:: :::::::::

1) (2) (3) (4)

Tolal 

By :ourts of appeals, 10Ial.. •• __ ·--·---------1 L;I : ~ I-­ ::

Oriiinally tried in- Tax Courl. ----·--_"I 1471 100 37 10 District courts • ... • • .. 114 74 31 9 

ey Supreme Court, lolal .... ••••••• -.----..--. 10 

Originally tried in- Tax Courl. .. . 4 

4 - -.• 2 

Note. Except for Supreme Court cases, the cases ~overed by tables 25 and 26 are "01 included. 

Table 23.-0fAce of Chief Counsel-Receipt and disposal of collection, erroneoos refund, 

subpoena, summons, and injunction cases 

Status INumber of cases

~:~:i:fiu1:_ ~!:~~~:::::::~::::~::::: ~::::::::::: _:::::.:.:.::-­ ---­ 1,294 

1,036 

Total •• •• __ • .• ------.-----­ 2.330 

Disposed 0••• ... • __ Pcndln2 June 30,1961._ ._ • _ 1.047 

1,283 

ate. This table includes cases handled at national and regional levels which are under consideration for SUit or are 

in ~ul1 In Federal and Slate courts. II does not include cases relating to alcohol, lobacco, and firearms taxes, neither does it 

perlain to insolvency and debtor proceedings or lien cases which are included in tables 24 and 25. 

TQble 24.-0ffice of Chief Counsel-Receipt and disposal of insolvency 

proceedings 

and debtor 

Total 

Reorganization 

proceedings I 

Bankruptcy and 

receivership 

MIScellaneous 

insolvency 

Status 

kendlng July I, 1960 _____ ..__• ____• _______ ~.

ecelved. _______ • ________ ••_. __ • ____ 

Total ---------------_... _-_. --.--~.

~isposed of _... ______ ._~ • _____ 

pnding Juno 30,1961. ____•...____ . ___ . 

proceedings: proceedings .' 

(1) (2) (3) (4)

1,752 803 406 543

2,848 1 258 847 743

1,253 1,286 4'600~ =-=..=.-.:­

2.719 1,150 849 720

1,881 911 404 566

Iiolo.-Inciudes cases handled at national and regional levels. 

I Proceedings Instituted under the following sections or chapters of the Bankruptcy Act: Sees. 75 (agricullural composi­ tIons and extensions) and 77 (railroad reorganizalions) and chs. X (corporate reorganizations), XI (arrangements as to 

unse.:ured indebtedness), XII (real property arrangements). and XIII (wage earners' plans), which involve tax claims and 

other "fhts and interests of the United Stales, and also reqUire action by lawyers. 

Bankruplcy liqUidation proceedings and Federal or State receivership proceedings which involve tax claims of the U~Ited States, and also reqUire action by lawyers.. . ., .. I Proceedings relating to corporate dissolutions, Insolvent banks, assignments for the benefit of creditors or admJlllstra­ tl on 01 eslales of decedents, which involve tax claims of Ihe United States, and also require action by lawyers. 

A JlIlual Hepor 

Table 20.-0ffice of Chief Counsel-Receipt and disposal of Tax Courl cases in courts 

of appeals or in Supreme Court 

In courts of appeals In Supreme Court 

Number of I Amount Number of Amount Status I cases (thousand cases (thousand dollars) dOllars) 

(I) I (2) (3) (4) 

Pending July I, 1960, tota'- ••• •__ • ., l­ 382 I 44,737 J 92 

Appealed by Commissioner. __• •.•• __ •• __ ._•••• _ ­ 40 1,996 3 - Appealed by taxpayers _ _•• ••• _ __ w _________ 92 316 29,895 Appealed by both. .•__ ._••__••••• __ 26 12,845 

Appealed durinr, year, total _,,_,, _ == ~==-= 335 25,837 8 1.283 

59 8,883 6 454 263 12,288 2 i~ ~~~~~~~_o~e:r~~=:-:-~~~=~~::===:=::=:===~:I==J= 830 13 4,666 

Disposed at during year, total.. __ • __ •••••• ._._ 

Favorable to Commissioner. •__• '" • •• _"'_"_
 Favorable to taxpayers_. ~- •••_._._...__
 Modified _
 Settled. __ .__ _ •
 

Dismissed_ 

Pendrng June 30, 1961, total_ 

Appealed by Commissioner. •• __ • __ • __ ._ •••• _••• _ 

Appealed by taxpayers. __•• ., n_. __ • Appealed by both __ • • _...__ ._, __ ._. __ ._ •••• _ 

Table 21.-0ffice of Chief Counsel-Receipt and disposal of suits filed by taxpayers 

In Federal courts 

Pending JUI~ 1, 1960: Cases _ •• ___ 

Amount In dISpute.- __:~-=-_._

Received during year: Cases ___ • ___ •_____•••••__ 

Amount in dispute.. _______ Disposed of during year: Cases .______ __ ____ ' .••______number., 

Amount in dispute... _ . _____ ..thousand dollars. Refunded during year: Amount. . ____ •thousand dollars.. Percent of amounfdlSPosed of..~____. __ ... ____ 

Pending June 30, 1961: Cases ___ • _______ • .rlumber_ Amount in dispule __ ~--=::::. ---:::il;ousand dollars__ 

, Revised. 

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

329 ~I~-===1== 3 92 

17, 

75 3: ~~~ .. .~. __ 92 22 11,166
 7 371
 

50 17.635 ==-= 

-

388 31, 4451 81___1._2~ 46 8,449 6 454 321 17,470 2 830 21 5,526 

Refund suits (other Perpetua· than alcohot, tobacco, tion of I and firearms taxes) I testimony IErroneous Total and retunds Slatus I damage Court of District actions Claims courts 

(I) I (2) (3) (4) (5) I 

----_ ..­

49 

2,136 

5 

1.497 

44 

644 

..number•• 

.thousand dollars 

___ number._ 

_thousand dollars•• 

2,950 

475,895 

1,348 

123,813 

1.256 

151,667 

29,919 

19.73 

3,042 

448,041 

465 

241,281 

168 

58,410 

147 

56,455 

13.892 

24.61 

~86

243,237 

2.440 

'234,575 

1, 117 

63,267 

1, 081 

93,709 

16,027 

17.10 

2,476 

204, 133 

45 

39 

14 

23 

6 

36 

27 

I The number of ca'es dISposed of does nol agree wilh the number of cases in which decisions were rendered by these 

courls during the year, due to selllement by stipulation, dismissals, and time required for retrial, recomputation of tax, etc. 

In Ihe Court of Claims the number of decisions was 46, of which 17 were for the Government, 24 against the Government. 

and 5 partly for and partly against the Government. In the dist"c! courts 397 decisions were rendered, at which 166 were 

for the Government, 192 against the Government, and 39 partly for and partly against the Government. For decisions by the courts of appeals and Supreme Court, see table 22. 
---

----

---

148 Stati8tical TaUe8 14-9
 A nn1.tal RepO'l't 

Table 27.-0bligations incurred by the In'emal Revenue Service Table 25.-Qffice of Chief Counsel-Receipt and disposal of lien cases and nonCOurt 

collection Iitigdtion cases lin thousands of dollarsl 

Commu­ Rents and Supplies Lien cases Noncourt Total Salaries Travel nication utility and Other colleclion I Total Inl,,"al revenue office, dist,ict, or region services services equipment litigation Status I
 Not in cases 3
 (1) (2) (3) (4) (5) (6) (7) r-In ::~rt I
 court 2
 

_ 1--1--1--1--1--1-1-­ (1) I
 (3) I (4) A N~\ional Office and ,egional totals . (Including district directo,s' Pending July 1, 1960 •• •• • , 165
 offices and service centers) Received_____ _ . • 1.-4091 590
 6.352 _~ 1,990 1 2.296 654
 ---._--­ Total, Internal Revenue Serv­ Total ice I ._ _ _ 7.761 2.656 2,155 2,950 413,295 345, 771 11,626 7, 893 2. 807
 6.916 I 38,283 _ - _--1­ ---------= ---­ Disposed of • ._••• •. _ Natiooal Office •••• - ••• ­ 22, 272 I, 305 4, 900 69
 1,204 9,666
 

1,138 316
 6,623 I 2,340 2.017 39,417 Pending June 30,1961. .•• . _ 2,266 138
 Atlanta I~gion --••.•-._•• _ 35,923 30,253 1, 554 253 82
 778 3,003 684
 Boston region _ ---.---•••• ,_ 27,250 23, 027 549 210 931
 553 1,980

Chicago region _. -- •• • 41.832 36,825 843 397 38
 543 3, 186
 Note.-Includes cases handled at national and regional levels. CincirlMti region .a__ 46,425 39.788 1. 281 314 757
 727 3, 559
 Dallas region. - ._. _ 28,411 24,277 1,278 193 39
 4ll 2,152 I Prinwily suits for foreclosure by mortgagees or other secured creditors and suits to qUiet title to which the United New York City legion_ ••• ._._._ 48,861 43.541 540 483 74
 584 3,638 States is made a pa,ty. Omaha region -. ,__ • _ 31. 854
 27,608 1,283 203 15
 409 2, 336
 , Primarily applications for discharge of property from tax liens. Philad~lphia regfon ••__ 47,513 42,101 830 368 25
 487 3, 702
 , Primarily memorandums on collection litigation matters from regional counsel to district directors which are not related San F'rill1risco region _ 52,190 44,568 1. 384 424 751
 956 4, 107
 to court proceedings or lien cases. Regio",1 counsel. ._ 155 481
 Regional inspection_. _._ _ •• _ 4,503
 

6,535 5,672 123 103 2
 

3,603 544 42 .
 27 288
 Office of International Operations __._ 2,581 2, 236 ll2 4 23
 22 184
 Table 26.-0ffice of Chief Counsel-Case load report B. Regional commissioners' offices (ex~

cluding district directors' offices 

Pending I Receipts Disposals 1 Pending and selVice centers) Type July J. 1960 June 30, 1961 Atlant. region 6,951 5,480 339 61 6
 287 779


(I) (2) (3) (4) Boston region ._. _•• __ ._, 3,003 2,501 140 30 6
 75 251
 Chicago reaion. __ ._ -_. ._ 5. 168
 4.455 87 60 3
 125 439
 Cincin"atr region . • __._. __ 200 701
 

I 23,681
 

8,473
 7,093 409 57 13
 Dallas region _ '. • .1
 116 308
 Ne'll YOrk City regIOn __._•••• _ __, 5,651
 25.635 3,760 3,155 140 35 6


134 469
 

400
 

4,890 79 65 14
 

4.619 4.672 347
 Omaha region ._ 4,076 3,428 152 42 4
 107 343
 Philadelphia reglOn________ • __ 157 697
 

102
 

7,396
 6,263 207 64 7
 ,"m 1"". San FranCISco reglon _ III 501
 

298
 1,304 1,298 6,151 5,201 213 53 5
 lOB 3.315 3,374 239
 .:=_.- --==
 C, District directors' offices and service 

10,341 10. 405 4,391 centers

Atlan!•. 625 I 533 400
 Q 71fi 9,872 3,991 Alllnta ... .. _.. _•• 4,622 3,972 180 4
 51 385
 1
 Birmingham _-.---. _. ._.1
 3,358 2,911 125 22 12
 35 253
 Columbia,. • _ ?,307 1,998 97 17 I
 27 167


',~' Gree"sboro •••••• •• _ 5,029 4.329 230 5
 59 376
 Interpretative Division ._. . • __ •• •.
 88
 I ""l .,:;;; Jackson. . _ 720 664 144
 2,006 1. 692 106 12 I
 51 144
 Jacksonville_.. _'" 0 _ 89 543
 Joint Committee. - __ .. ••_••_. •• .___ 79 I ~L:J I
 ===:-..".== 7,052 6,060 285 ~ ~ M1shville • • __ 794 4,175 3,608 162 29 I
 53 322
 lOB 

1===1 =l Allanta Service Center 422
 204 28 3 127 34
 .­ Boston: 

Augus!n _ Refund LitiRation Division ------.----------- .--- 2.950 I 1. 348 1 I. 256l·== I
 3.042

~-= 1,555 1,350 60 15
 19 110
 Ta' Court , • • .. '13,424 80stoo__ 8,875 7,943 146 87 5
 62 631
 7,2641___11.945 S,785 1
 BurliI1RIOI1 ••••• • ._._~ 8 ._ 12 61
 NationaIOffice. •• .___________________ 385
 .._--- 810
 690 38
 Hartlord .. __ • • .- __._ 5.061 4,515 82 33 7
 55 369
 345 334 396
 Field.. .__ . ••• __• •• 13,039 Po'tsmouth _ 1,118 954 40 9 12
 21 81
 5,440 6,930 11.549 Providence ._. •••• _ I. 779
 1.594 20 16
 16 133


Northeas! Service Center ._._ 5,050 3,480 23 12 901
 291 344
 Chicar.o:
 

l Nondocketed cases not included.
 

I Adjusted. Chicago .. __ .. _.________ •• _ 14,576 12,969 142
 180 1.115 DetroiL_., .. _ 151 I 19
 11,894 10,527 259 97 7
 127 878
 Milwaul\ee _. _ 5,589 4,895 171 49 4
 ·60 409
 Snringlleld • _ 4,605 3,978 183 39 6
 52 345


Footnote on p. 150. 
--

I 

I 

8tati.stical T(jUe.~	 L51 150	 .1 ]JfJ·nal Report 

Table is.-Quantity and cost statistics for priJ'lting Table 27.-0bligations incurred bv the Internal Revenue Service--Contlnued 

[In thousands of dollars] 1961	 1960 

Commu· Renls and Supnlies
 Total
 Salaries Travel nication utility and Quantity (thousands) Quantity (thousands) I Other Class of work	 Cost Internal revenue office, district, or region services services equipment (thousand (thousand Items or Packages dollars) Items or Packages dollars) sets sets (1) (2) (3) (4) (5) (6) ~I '0>' --------------1 '----1 ' , , _ (7) 

(1) (2) (3) (4) (5) (6) C.	 District directors' offices and service centers--Continued 

Total..­ ._------------------------ 1,698.243 ------- 6,500 1,649,473 ------ 6,394 Cincinnati: Cincinnati: _ 5.895 5,262 119 36 2 4 1 Packages of ' returns and instructions for Cleveland _ 9: ~17 8.375 180 a7 5 ta major mailin s to taxpayers, tolal 334,462 69,616 I. 021 319,810 69.276 993 Indianapolis 6: 185 5,494 159 33 2 6 

44; -----­ Louisville.•• __ 3,893 3,408 128 31 I --- .. ------­ 1 U Package 1 Form 1040W) _______ 39,900 13,300 105 ~7, 337 15,779 109
 Richmond .. ._
 Parkersburg. •• _•• 2,480 2,133 95 21 I 19 Paok<lgc 2. (Form 1040 nonbusiness wHh 4. )]6 4,089 178 44 2 Midwest Service Center . • estimate I tax)	 75,000 12.500 274 63,IU 10.523 224 5,366 3,935 U 6 730 IU 4 Package .3 Form 1040 business)::----==:=- 6,845 237 52.280 6,660 254
 

Albuquerque.. . _
 Dallas: Package 4 Form 1040 farm) ___________ j~~ ~~~ 3,955 138 29: 754 3.306 124 1,377 1.148 76 13 3 V 11 Austin_ ___ •••••••__ ._._. Packag85 Form 1065 partnership)_ 5,250 1,050 15 5.350 1,070 16 6,966 5,999 298 44 7 Dallas. _ Form 1120 corporation) ___ =:~ 5,075 1,015 22 5,215 1,043 20 6,829 5,860 327 4t 4 % ~~;~t841 ,. ----_._----~----- 53, 762 26,881 t43 53,930 26,960 157 II Little Rock 2.146 1,756 168 14 2 U

Employmen New Orleans__ t tax package_ .. __________ 65,120 4,070 87 62,800 3,935 89 4,060 3.533 147 26 4 Oklahoma City __ •••• -..._. 3,272 2,825 123 21 13 ---= --- I

Other ta. ret HflS, instructions, publlc·use


Albany ... . __
 New York City: mpble!s __________________ . forms, Jnd p 835,425 2,768 841,603 2,822
 

Brooklyn
 2,899 % ~_._--- 2,539 86 28 I ro ------­ AdministratlV€ arms and pa'mphlets ____ ._. 450,210 -- --- 0 _ I~ 1.565 422,938 1,356 11,949 10.716 83 128 5 97 Buffalo . ~. ~--_._-_._ 4,138 2.9 4 Field printing . ------------------.--.. 78.146 VO 65. 122 217 3,662 1~ 1,56 Excise tax stam ps_ _. --- .... - ----------- (I) .. .. 876 <') _. Manhattan t,006 . 21.118 t9,028 79 2t J 49 Syracuse. __ _ •• 2.98t 2,599 113 22 2 Puerto Rico _ 3 ,	 .. , .. 125 107 4 1 Omaha: , The numbe r of excise tax stamps printed in 1961 totaled 1,771,261,000 as compared with 1,734,902,000 in 1960.
 Aberdeen __ . •• _._••_. _
 5 , _ 1,098 922 81 13 Cheyenne. • •• 752 629 54 5 13 5 Denver. . ._ .. _. _ 3,096 2.702 105 n

V 21 Des Moines_ • " 3,864 3,341 183 24 Fargo ...... _•••.• 991 14 n 835 68 5 ------1 Kansas City • .1 3.027 2.671 91 13 31

2.411 2,082 103 13 1

~;'L~~is -~:---~-:::-:~==:::..::: 4, t83 3. 680 128 18 I 51. Paul •••••••• __ 4,917 4,335 151 34 3 U Wichita. _ 2 

Philadelphia:

3,440 2,982 165 24 I

Baltimore 0_ 1 7,937 7,136 114 49 4 D Camden . ._ 3,592 3,193 82 25 J 29 U Newark • _ _ 6
 Phi ladelphia --._-••--.--_.1 9.685
 

8.683 7,7M 90 98 3 72 7
 

Pittsburgh ._•••__ ••••_.
 8,649 144 63 4 M

6,691 5,955 t23 48 4 Scranton __ . _ 2.382 2, 108 52 14 -' 31 o

Wilmington , • •• __ 9 

San Francisco: 

t, 147 1,033 t7 5 I

4 _ 

Anchorage _ 383 304 29 13 3 1

Boise .. •.• _ 66 13 17 II 1.217 1,033 Helena_ __ _ 8
 

Honolulu. ._ ••••••• __... ._.
 1.250 1,059 76 14 15 9
 Los Angeles .. __••' __
 1.336 1,180 34 9 I 14

14,991 13,193 279 142 30 1~ 1, 16 Phoenix _ ___ •• ..... _....__ .......
 t,834 J.502 68 16 4 107 Portland_.___ _ . _ 3. t94 t9 1 2 2.756 ll7 Reno ... .. _ 8
 Salt Lake City .. __
 I. 054 897 41 10 19 10 1,393 t,222 46 9 1~ 77 San Francisco. 10,284 9,013 247 83 8 Seattle . _ 35
 

Western SeTvice Center
 4,792 4, 172 154 46 5 1~ 401 4.310 3,036 15 7 697

1 Includes $246,076 financed from reimbursements. 

JlJ 
INDEX 

Page 

A 

Acts: 

Dealers Reserve Income Adjustment, 1%0_~.__ ~, -----~-~-_~

Federal-Aid Highway, 1961. 

Fedaal Alcohol Administration_~

~edcral1"irearms __ _ 

Federal Insurance ContributionsFederal Unemployment Tax _ 

National FirearmsSocial Security 1960_. 

Social Security 1961 

_ 

Amendments, _ 

Amendments, _ 

Tax Rate Extension, 1961. _ 

'cmporary Extended Unemployment Compensation, 1961. _ 

Adverse Tax Court Decisions, statistics on --

Advisory group • ,~ka ­

Alcohol and tobacco tax: 

Authorization of operations, 

Cbemieal analyses research 

Enforcemen t activity 

Establishments:
 

[nspection of.
 

_ 

_ 

_ 

_ 

_ 

_ 

_ 

Qualified to prOduce, distribute, 

etc _ 

Lab( I actiVity _ 

Seizures and arrests _ 

Supervision: 

Ofindustrics________________
 

On-prcmises._____________ __
 

13 

56 

13 

39 

56 

53 

36 

54 

51 

53 

39 

51 

53 

Statistics on 4,104,108, 

118,120,121,123 Appeab: 

Appellate Divi:;ion 31 

Closjn~ agreement cases. _______ 33 

Processing or. 31-34 

Statistics on 31-32,142-144 

AppendL-c_____________________ 83 

Assessments, additional. (Su Taxes.) 

153 O~l o -~ I - J) 

Automatic data processing: 

Atlanta Service Center 

Crcation of ADP Division 

Master file _ 

National Compu tcr Center 

Training . 

B 

561 Bulletin, Internal Revenuc 

14 

C 

56/ Carryback allowances 

Chicf Couns<,l, Office of: 

P8jte 

_ 

_ 

_ 

_ 

23 

64 

23 

24 

68 

16,89-91 

• _ 22 

56 

56 

56 

Analysis of cases fiowing through_ 40 

Cases involviJlg criminal proseeu tion _____________________ 40 

Disposal of eases by 40,145-148 

Civililtigation________ 34 

351 Claims. (S,e specific item.) 

76 Closing agreement cases _ 16 

64 Collection Division. reorganization_ 64 

Collection litigation legal services__ 49-50 

51 ICollections: 

Alcohol taxes, . 4, 104,118,120,123 

Corporation income and profits 

taxes 3,4,102,118,120,123 

Disability insurance 3,4,102,118,120 

E.mploymcnt taxes 4,5,102,118,120 

Estate and gift taxes 4, 104, 

118,120,123 

Excise taxes 4,5,104,118,120,123 

Individual income taxes 3,4, 102. 

118,120,123 

Old.agc insuranec_ __________ 3, 4, 102, 

118, 120, 12 

Other 4,110,123 

Railroad retircment._ 4,5,102, ll8, 120 

Stamp taxes , 108,118,121,134 

Statistics 00 102-123 

Tobacco taxcs 4,108,118,121,123 

Unemployment insurance 4,5,102, 

118,120 

Withholding taxes __ ---- 4,102,118,120 

I :11 
Page 

Commissioner: 

Acquiescences in adverse Tax 

Court decisions 35 

Contest of suits 93-97 

Nonacquiescences in adverse Tax 

Court decisions 35 

-Summary and transmittal letter_ V 

Commissioners of Internal Revenue, 

1862-1961 XI 

Computer center, Martinsburg_ _ _ _ 24 

Conventions, tax. (See Tax conventions.) 

Corporation income taxes: 

Additional assessments 29, 45 

Collections 3, 4, 102, 118, 120, 123 

Refunds of, and claims for____ 6, 29, 126 

Returns examined 27 

Statistics on 3, 4, 102, 118, 120, 123 

Court(s): 

Circuit courts of appeals._ __ 34, 146, 147 

Of Claims 34, 146 

Supreme, of the U.S_34, 93-97, 146,147 

The Tax, of the U.S____ 31, 33, 144-146 

U.S. district 34, 146 

Credits resulting from excessive 

prepayments 21 

Criminal prosecution: 

Analysis of cases in 40-41 

Cases, disposal of 40 

Of tax cases 40 

Supreme Court decisions in 93-97 

Current research program 75 

D 

Delinquency investigations and delinquent returns: 

Additional tax from 45 

Increase in returns secured 35 

Statistics on 45 

Delinquent accounts: 

Disposals 48 

Improvement in 47 

Statistics on 47 

Techniques 48 

Determination letters: 

Employee benefit plans 15 

Exempt organizations 15 

Pension trust plans 15 

Statistics on 15 

Disability insurance taxes: 

Collections, increase in 3, 4 

Refunds 7 

Page 

Dividends and interest: 

Expansion in research studies_ ___ 75 

Legislation recommended 75 

E 

Electronic data processing. (See 

Automatic data processing.) 

Employee benefit plans, determination letters on 15 

Employment taxes: 

Additional assessments resulting 

from examination 29, 45 

Appellate Division processing of_ 32-33 

Collections 4, 5, 102, 118, 120 

Refunds, claims for 29 

Refunds of 7 

Returns: 

Examined 27 

Filed 19, 20, 128 

Revenue rulings and procedures 

published 16, 89 

Enforcement activities: 

Additional tax from 45 

Alcohol and tobacco tax enforcement 36 

Appeals 31-33 

Delinquent accounts 47 

Examination of returns 27 

Firearms program 39 

Fraud investigations 35 

Informants' rewards 43 

Mathematical verification 25 

Offers in compromise 48 

Enrollment of practitioners 79 

Estate tax: 

Additional assessments 29, 45 

Appellate Division processing of_ _31-32, 

142-144 

Claims for refunds 29 

Collections 4, 104, 118, 120, 123 

Refunds of 7, 126 

Returns: 

Classification of 27 

Examined 27 

Filed 20, 128 

Estimated tax, declaration of: 

Corporation 20 

Individual 19, 20 

Processed by service centers 20 

Examination, additional assessments 

from 29 

Page 

Excess profits tax: 

Appellate Division processing of__ 33 

Council 33 

Relief claims, reduction of 33 

Excise taxes: 

Additional assessments 45 

Appellate Division processing of 32-33 

Collections, increase in 3, 4, 5 

Refunds of 7, 126 

Returns filed 19, 20, 128 

Exempt organizations, determination letters on 15 

F 

Facilities Management: 

Property 69 

Publications 71 

Records and paperwork 69-71 

Reorganization of 64 

Safety 71 

Space 69 

Statistics on 71 

Federal-State cooperation 41 

Fiduciary income tax: 

Additional assessments from examination 45 

Returns filed 20 

Firearms program 39 

Fiscal Management: 

Cost of operations 73, 149-150 

Improvements of financial plans 74 

Mechanization of operations 74 

Statistics on 73, 149-150 

Foreign tax officials, assistance to. 79 

Forms: 

Cost of printing 151 

Distribution of 12 

New: 

1120F 87 

2948 87 

2950 87 

3115 87 

Revision of 86 

Statistics on 71 

Tax return program 12 

Fraud investigations 35 

G 

Gasoline taxes: 

Collections 110, 118, 121 

Refunds 6 

Page 

Gift taxes: 

Additional assessments 29, 45 

Appellate Division processing of 32-33 

Claims for refunds of 7, 126 

Collections 4, 104, 118, 120,123 

Returns: 

Classification and examination_ 27 

Filed 20, 128 

I 

Incentive awards program 67 

Income tax(es): 

Additional, from enforcement__ _ _ 45 

MI returns 3, 4, 102-123 

Corporation 3, 4, 102, 118, 120, 123 

Individual 3, 4, 102, 118, 120, 123 

Processing of protested cases_ _ _ 142-143 

Indictments 40-41 

Individual income taxes: 

Additional assessments 45 

Appellate Division processing of 32-33 

Collections 3, 4, 102, 118, 120, 123 

Mathematical verification of 25, 26 

Refunds, claims for 29 

Returns: 

Classification and examination 

of 27 

Filed 19-20, 128 

Processed in service centers____ 20 

Informants: 

Claims, disposal of 43 

Rewards to 43 

Information returns, number received 20 

Inspection: 

Internal audit 77 

Internal security 77 

Investigations 77-78 

Reorganization of 64 

Statistics on 78 

Intelligence Division: 

Fraud investigations 35 

Statistics on 36 

Training program 69 

Interest, allowed on refunds__ _ 6-7, 21-22 

Internal Revenue regulations system 13 

International operations: 

Activities of 42 

Foreign posts of 43 

Reorganization of 64 

155 

154 
Page Page 

Publications, etc.-Continued Supreme Court decisions: 

Miscellaneous 86 Civil cases 93-97 

Motor Fuels Tax 85 Criminal cases 97 

Objective of 8 Systems review and coordination__ 74 

157 

Page 

Interpretation and communication 

of tax laws to taxpayers 8- 17 

Investigations: 

Delinquency 35 

Disciplinary actions 78 

Fraud 35 

Miscellaneous 35 

- Of applicants for enrollment to 

practice 79 

Personnel 78-79 

Prosecutions recommended 36 

Statistics on 36 

Wagering and coin-operated 

gaming devices 35-36 

J 

Joint Committee on Internal Revenue Taxation 34 

K 

Known defendant seizure program_ 36-37 

L 

Laboratories: 

Research 53 

Testing 53 

Legal activities 59-62 

Legislative developments 55-57 

Litigation, appeals and civil, results 

of 34-35 

Long-range planning 74 

M 

Major administrative improvements 

and policy changes 63 

Major violator program 36-37 

Management activities 63-82 

Management development program_ 63 

Map of Internal Revenue regions 

and districts XIV 

Martinsburg, computer center 24 

Mathematical verification: 

Additional tax from 25 

Statistics on 26 

N 

National Computer Center 24 

National Office, organizational 

changes in 64 

0 

Obligations incurred, Internal Revenue Service 73, 149-150 

Page 

Occupational taxes: 

Collections 116, 119, 122 

Number of stamps issued by class 

of tax 134-140 

Returns filed 20 

Offers in compromise 48-49 

Officers, principal, Internal Revenue Service XI-XIII 

Old-age insurance taxes: 

Collections 3, 4 

Increase in 3, 4 

Refunds of 7 

Organizational changes, National 

Office 64 

Other collections 4, 116, 119, 123 

Overassessments 29 

Overassessments reported to Joint 

Committee 34 

P 

Pension trust plans 15 

Personnel: 

ADP conversion 66 

Employee relations 67 

Incentive awards 67 

Recruiting 65 

Statistics on 66 

Training program for 68 

Practitioners: 

Enrollment of 79 

Statistics on 79 

Prepayments, excessive: 

Individual income tax 6, 7 

Interest allowed on 6, 7 

Refunds of 6, 21, 22 

Preventive Raw Materials program_ 37 

Principal officers of the Internal 

Revenue Service XI-XI II 

Protested cases, statistics on 142-143 

Public information program: 

Films 11 

News releases 11 

Other 11 

Radio 11 

Television 11 

Publications, taxpayer assistance: 

Community Property 85 

Farmer's Tax Guide 84 

Hurricanes, Floods, Tornadoes, 

Other Disasters, Thefts and 

Condemnations 84 

Tan Guide for Small Business__ 84 

Tax Guide for U.S. Citizens 

Abroad 85 

Teaching Taxes 85 

U.S. Tax Guide for Aliens 85 

Your Federal Income Tax___ 84 

Puerto Rico 130 

R 

Railroad retirement taxes: 

Collections 4, 5, 102, 118, 120 

Refunds of 7 

Returns filed 20 

Receipt and processing of returns 19-24 

Refunds: 

Claims for 3, 6, 7 

Excessive prepayments 21 

Statistics on 7, 22, 126 

Regulations: 

Amended 89 

New 89 

Reissued 89 

Reports program 64 

Requests for tax rulings: 

Field offices 15 

Taxpayer 15 

Analysis of 15 

Research program 75 

Returns filed: 

Classification and selection of_ _ _ _ 27 

Examination of 27 

Increase in 19 

Processed in service centers 20 

Statistics on 20, 128 

Verification of ' 25 

Revenue Procedure 60-18 34, 60 

Revenue rulings and procedures: 

Analysis of 16 

Published 89-91 

S 

Service centers 20 

Stamp taxes, statistics on 108, 

118, 121, 134 

Statistical reporting 80 

Supervision of the alcohol and tobacco industries 51-54 

Supreme Court cases 93-97 

Tax conventions 57 

Tax. Court, The (see also Appeals) : 

Adverse decisions 35 

Disposal of cases 144-146 

Tax laws, interpretation and communication of 8-16 

Tax(es): 

Additional: 

From examination 29 

From delinquent returns secured 35 

From enforcement 45 

From mathematical verification 25 

Increase in 29 

Alcohol 4, 104, 118, 120, 123 

Corporation income and profits_ 3, 4, 

102, 118, 120, 123 

Disability insurance_ _ 3, 4, 102, 118, 120 

Employment 4, 5, 102, 118, 120 

Estate 4, 104, 118, 120, 123 

Excise 4, 5, 104, 118, 120, 123 

Fiduciary income 45 

Gasoline and motor fuels__ 110, 118, 121 

Gift 4, 104, 118, 120, 123 

Individual income 3, 4, 

45, 102, 118, 120, 123 

Old-age insurance 3, 4, 

102, 118, 120, 123 

Other 4, 110, 123 

Railroad retirement _ 4, 5, 102, 118, 120 

Stamp 108, 118, 121, 134 

Tobacco 4, 108, 118, 121, 123 

Unemployment 4, 5, 102, 118, 120 

Withholding 4, 102, 118, 120 

Taxpayer assistance program 11 

Tax rulings: 

Request for 15 

Statistics on 15 

Teaching taxes program 11 

Technical information releases 92 

Tobacco tax(es): 

Arrests 39 

Collection 4, 108, 118, 121, 123 

Refunds of 7 

Results of criminal action 40-41 

156 
Page Page 

Tobacco tax(es)—Continued V 

Returns filed 20 Verification, mathematical: 

Seizures 

Statistics on 4, 108, 118, 121, 

Training: 

39 

123 

Error cases, increase in 

Results of 

25 

26 

ADP program 68 

Visitors, foreign 79 

General 68 

Management Development Pro- Wagering tax cases, results of crimgram 68 inal action 41 Treasury Decisions 87 West Virginia, Martinsburg, comU puter center 24 

Unemployment insurance taxes: Wines: 

Collections 4, 5, 102, 118, 120 Control of 53 

Refunds of 7 Taxes collected 106, 118, 120 

Returns filed 20 Withholding taxes, by employer_ __ 4 

158 

U.S. GOVERNMENT PRINTING GEn E • Min em—ansi7ce