I

Associate Supreme Court Justice Harry Blackmun (right) administers the oath of office to

Johnnie M. Walters, Commissioner of Internal

Revenue as Mrs . Walters looks on.

Corporation Statistics Staff

Statistics. 'Divisiou .m.,

1;
Honorable George P . Shultz

Secretary of the Treasury

Washirgton . D . C . 2022 0

Dear Mr . Secretary :

We proudly present to you the Annual Report of the Internal

Revenue Service for fiscal year 1972 .

For the first time . receipts surpassed the $200 billion mark,

reaching a total of S209 .9 billion . Collections increased in

almost every category, reflecting the good health of the economy,

the conscientiousness and good citizenship of Americans, and the

dedication of the men and women of the Internal Revenue Service .

Fo

r this year . in particular . the statistics do not depict

ads

q

udtely the accomplishments of Service employees, who merit a

"well done" not only for effective collection of the Federal

revenues but also for superb execution of their added

responsibilities under the Economic Stabilization Program .

Federal tax administration in the United States, with its low

cost per-dollar-collected, fir surpasses the efficiency of revenue

gathering efforts in other countries . Yet, we must not rest on

these laurels . We must continue to seek ways to make our

operations more responsive to the needs of taxpayers so that

voluntary compliance, the backbone of our tax system, will reach

even higher levels .

The Service is striving to provide tax assistance, education,

and information to all who ask for it, and to reach out to those

who are unaware of tax law requirements with pFograms of expanded

servic e

In 1972, the Service made substantial progress . and we expect

to report greater accomplishments in 1973 .

Sincerely ,

Johnnie M . Walters

Commissioner of Internal Revenue

MISSION OF THE SERVICE

The mission of the Service is to encourage and achieve the highest possible degree of voluntary

compliance with the tax laws and regulations and to maintain the highest degree of public confidence

in the efficiency and integrity of the Service . This includes communicating the requirements of the

law to the public, determining the extent of compliance and causes of noncompliance, and doing all

things feasible for a proper administration and enforcement of the law .

Tremendous Increase in Gross Collections

Over Thirty Year Period (1942-1972)-

1 .

.I.

- - 11. 1- 1- .1. .1n

THE TAX DOLLAR

WHERE IT CAME FROM

IFISCsn- YEAR 1972

5. rdn,idn.l In... T.-

Eiic"

. T .-

3C Eanst, and Gin TSTATISTICAL HIGHLIGHTS

(Amount (thousand dollars))

WC

Percent

1971 1972 Chang e

Gross Collections $191 .647.198 $209,835,737 9.5 Individual Income $100,752.421 $10SX79.186 8.1 Corporation Income $30,319,953 $3,11,925.546 15 .2 Employm m S39,918.650 $43,714.001 9 .5 Estate end Gift Exci se $3,784.283 $5,489,969 45 .1

$16,871,851 $16 .047,036 - 0.1

Rotunda-,

gumbin, 55,916,604 55,154,883 - 1.4 Amount $19,022,568 $11111970.6.40 - 0.3

Returns Filed 111,447,000 112,000,449 0.5

Returns Examined

Number 164592 1

695,11148 30 Tax Increases Recommended $3 :408:3479 $3,413 133 D'A

Returns Mathematically Verified:

Number 72,938.000 72,482,000 - 0.6 Amount of Tax Increase $313,052 $238,982 -23.7 Amount of Tax Decrease $140 .235 $110,408 -14.9

Delinquent Returns Secured :

Num r 735,DOO 815,000 10.9

Amount $489,359 $452,324 - 7.6

Delinquent Accounts Collected . $2.606,838 $2.327,505 -10.7
REPORT ON OFFICERS

Informing and Assisting Taxpayers

Enforcement Activities / 9

Special Enforcement Activities / 25

Economic Stabilization Activities / 33

International Activities / 41

Legislative and Legal Activities / 49

Planning Activities / 55

Internal Management and Support Activities / 63

Receipts, Refunds and Returns Filed / 73

ORGANIZATION-PRINCIPAL OFFICERS

Organization ofthe Internal Revenue Service / 82

Internal Revenue Regions and Districts / 83

Principal Officers / 84

Historical List of Commissioners / 88

APPENDIX

Taxpayer Publications / 96

TaxFormActivity / 92

CourtDecisions 94

Statistical Tables 10 3

Notes

All yearly data are on a fiscal year

basis, unless otherwise specified . For

example, data headed "1972" pertain to the fiscal year ended June 30,

1972 and "July 1" inventory items

under this heading reflect inventories

as of July 1, 1971 .

In many tables and charts, figures

have been rounded and may not add

to the totals which are based on unrounded figures .

For sale by the Superintendent of

Documents, U .S . Government Printing

Office, Washington. D .C. 20402. Price

$1 .75 (paper cover)-domestic postpaid, or$1 .50 GPO Bookstore

Stock Number 48D4-00591
New Dimension

s

in Taxpayer Service

As part of the Service's continuing commitment to increase assistance to taxpayers and improve forms and instructions,

Commissioner Walters ordered a

study to determine the feasibility

of reintroducing the short-form

income tax return (Form 1040A) .

The study produced a simplified

half-sheet size form for reporting

1972 taxes which can be used by

more than 30 million taxpayers,

or 40 percent of individual income tax filers. The Revenue

Act of 1971 made an abbreviated

form especially practical because

of an increase in the standard

deduction and extension of the

optional tax tables to more taxpayers . A simplified form also

was desirable because of an increasing public reliance on commerical returns preparers, especially among lower income taxpayers. -

In 1972, the Service responded to

more than 41 million taxpayers

seeking information and assistance with tax matters . Over 19

million persons telephoned,

about9 million visited Service

offices, and almost 300,000 more

wrote. The Service reached 13

million through various educational programs .

The Service provided prompt taxpayer assistance through a variety of methods . Centiphone, a

system of toll-free telephone

lines to Service offices, was

available to taxpayers in 27

states . Nationwide, the Service

gave assistance at shopping centers, public libraries, at taxmobiles stationed at strategic locations to assist low-income taxpayers and senior citizens, and

at military installations, nursing

homes, hospitals and other institutions . The Service increased

the tempo of its assistance toward the close of the filing period

by adding more employees to the

program and extending office

hours . It helped more than 500,-

000 taxpayers who visited Service

offices during the last six days of

the 1972 filing season .

Taxpayer Education

Aids Millions

This year Service-sponsored taxpayer education programs helped

more than 13,000,000 taxpayers .

Teaching Taxes, the largest Service taxpayer education program,

provided materials and instruction to 4.1 million students in

23,000 secondary schools. The

Teaching Taxes Program explains

the tax system and teaches students to prepare accurate tax

returns .

Tax practitioner Institute programs dealing with tax situations

of farmers, military personnel

and the general public provided

training to 54,000 participants

who in turn assisted nearly

8,000,000 taxpayers . The Volunteer Income Tax Assistance

(VITA) Program trained volunteers who then assisted 300,000

low-income and other disadvantaged taxpayers such as those

with language problems, the

blind, and the deaf . VITA is a

program in which IRS employees

train volunteers from the community to assist disadvantaged taxpayers in preparing their returns.

Through VITA, members of diverse organizations such as community action groups, churches,

colleges, and retirement organiizations assisted taxpayers in

community centers, Indian reservations, churches, store-fronts,

hospitals, and elsewhere. Also as

part of the VITA program, the Institutes of Lifetime Learning coordinated with the Service in

providing assistance to 53,000

elderly and retired taxpayers in

317 cities . Other national organizations will be contacted next

year to develop similar programs

for their groups .

Many junior colleges, colleges,

and universities offered the

Teaching Business Taxes Program with material provided by

the Service. In 1972, some 14,000

students in economics, business,

and accounting received instructions through this program in

preparing tax forms filed for

small businesses and corporations.

New Integrated Data

Retrieval System (IDRS)

Becomes Operationa l

The Service is trying to develop

and use the most advanced scientific methods to speed replies

to the growing number of inquiries it receives from taxpayers .

In 1972 the Integrated Data Retrieval System operated successfully in the Austin, Texas, Service

Center and the six states of the)

Region . The key to IDRS is a

series of video display-inquiry

stations in IRS offices . These sta..

tions link to large random-access

computer files in an IRS service,

center. When the taxpayer visits;

or writes an IRS field office con .

cerning his account status, an

IRS employee consults the com. .

puter by sending a message

through the terminal link to the

service center . Within seconds,

the computer responds to the inquiry by flashing a message on a

video screen in the field office.

In addition to providing IRS personnel with almost immediate access to a particular taxpayer file

and a speedy response to the

taxpayer, IDRS eliminates paper

work and permits rapid updating

of stored information .

The IRS will install the Integrated

Data Retrieval System in all service centers, district offices, and

many other locations in fiscal

year 1973.

Taxpayers Reached

Through Cooperation

of the Media

This year the Service provided a

weekly tax column ("Taxpayers

Ask IRS") to 1,508 daily newspapers and 5,986 weekly newspapers . Field personnel reported

heavy usage of the column, especially during the filing period .

As a public service, 4,750 radio

stations broadcast Service-developed spot announcements and

765 television stations carried

film spots .

Television stations throughout

the country gave public service

time to a 30-minute Service film,

providing in dramatized form,

general tax information for the

public . More than 800 motion picture theatres across the country

ran a shortened version of the

film . Radio and television stations also cooperated with IRS

district offices in presenting locally developed tax information

programs .

In addition to hundreds of news

releases put out by field offices,

the National Office issued 135

general information news releases and 91 technical information releases directly to the mass

media .

The National Office responded

to over 40,000 media inquiries

while the field offices answered

More than 31,000 such inquiries . 2

3
Taxpayer Publications

Explain the Tax Law

The Service produces several

forms of interpretative publications which explain the tax law in

non-technical language. Service

personnel revise most of these

publications annually to reflect

changes in the law, adding new

publications from time to time

and discontinuing others .

The Superintendent of Documents of the Government Printing Office and IRS offices handle

the distribution and sales of taxpayer publications. This year,

many local offices of the Postal

Service also sold "Your Federal

Income Tax" and "Tax Guide for

Small Business ." These are two

of the more popular publications

and the only ones not distributed

free of charge .

"Your Federal Income Tax" continues as one of the Government's best selling publications

with 1,873,654 copies sold this

year .

Service technicians rearranged

the "Tax Guide for Small Business" to discuss in sequence the

starting, operating, and disposing of a small business . The publication also covers differences in

tax treatment of sole proprietorships, partnerships, corporations,

and electing small business corporations .

This year the Service developed

four new publications : "Tax Information on United States Savings Bonds," Publication 576 ;

"Amortization of Pollution Control Facilities," Publication 577 ;

"Guides for Qualification of Pension, Profit-Sharing, and - Stock

Bonus Plans" Publication 778 ;

and a Spanish language version

of "Information for Preparation

and Filing of the Individual Federal Income Tax Return," Publicalion 579. For a list of titles of taxpayer publications see page 93 .

Public Informed on

Economic Stabilization

Progra m

in suppgrt of the office of Emergency Preparedness, during

Phase I of the President's Economic Stabilization Program, the

Service responded to almost

8,000 media inquiries ; participated in 68 news conferences, 614

radio and 330 television programs ; furnished public speakers

on 557 occasions ; and issued 746

news releases. A weekly economic stabilization question and

answer column provided information to the public through 8,000

daily and weekly newspapers.

With the move into Phase 11 the

Service stepped up its information efforts and issued 1,367 news

releases publicizing regulations

and informing the public of matters of general interest . The Service responded to 11,004 media

inquiries ; participated in 58 news

conferences, 784 radio programs

Each year the Samice publishes a number of

Pamphlets and Instructional Packages to as31st taxpayers in filing return, . Th. P.Mphlots pictured abom Make UP Only a small

portion of the total tax Information Publicafl.na issued.

and 446 television programs ; and

provided speakers for 2,938 meetings of business associations and

other groups . The National Office

prepared 11 radio spot announcements for the Cost of Living

Council Radio Spotmaster System

for use by stations across the

country .

Spanish Language

Progra m

For the first time the Service

undertook a program of providing some tax information in Spanish for the largest non-English

speaking group in the United

States . Through simultaneous

press conferences in New York

City, Miami and Los Angeles and

news releases, the Service announced the publication of a new

Spanish language guidebook for

individual taxpayers . The Service

31SO issued some Spanish languaie news releases and spot

announcements to news media

that print or broadcast in Spanish . Spanish speaking Service

personnel appeared on radio and

television programs to broadcast

'ax information .

Publicizing Changes in

the Tax Law-Increase

In Withholding Rate s

The Revenue Act of 1971 provid3d for increased withholding rates

to eliminate the substantial underwithholding potential inherent

in prior law. In some situations it

was apparent that the new rates

would cause too much tax to be

withheld from the paychecks of

many taxpayers . To meet this

Problem, the Service conducted

program to inform taxpayers

~!bout the latest change in the

.,, thholding tables, and of remeJes available to prevent exces-

,ve withholding .

ie Service prepared news re-

:eases and articles and arranged

.nterviews with wire services, nailonal magazines, and newsletter

publishers . Nearly 900 television

stations and the networks carried

two television spot announcements on withholding, and Serv-

'ce offices distributed four radio

spots to nearly 5,000 stations .

The Commissioner sent letters to

more than 160,000 employers of

100 or more persons, explaining

changes in the withholding rates.

Service offices distributed copies

of the Employer's Tax Guide

(Circular E), which explained

changes in withholding to 4 .3 million employers who withhold

taxes from employees . The Service also sent explanatory letters

to Cabinet members and other

heads of Federal agencies with

sizeable groups of employees .

Other Changes in

the Tax La w

The Revenue Act of 1971 brought

about several other important

changes for individual and corporate taxpayers . The Service answered press inquiries and issued

releases to inform individuals

about the increased staficlard deduction, changes in filing requirements, deductibility of household

and dependent care, limited deduction or credit for political

contributions, and changes in estimated tax filing requirements .

Similar activities for corporate

taxpayers covered Domestic International Sales Corporations,

the Work Incentive Program, the

Asset Depreciation Range System, and the Investment Credit .

Casualty Loss

Deductions

Many taxpayers in the East and

Northwest suffered severe losses

due to flood and wind damage .

To assist these taxpayers, Congress extended the time to file

amended 1971 tax returns so that

taxpayers can deduct disaster

area casualty losses sustained

after the tax return filing deadline . The Service also applied special techniques to claims for refund inihe disaster areas in order

to process them and authorize refunds within three weeks.

Field offices in affected areas

conducted information campaigns

stressing local situations . The

National Office answered press

and taxpayer inquiries on changes

in the law and issued news releases advising taxpayers in disaster areas that they could file

amended 1971 tax returns.

Special Procedures

Speed Up Processing

of DISC Rulings

The Revenue Act of 1971 authorized creation of Domestic

International Sales Corporations

(DISC) . The purpose of this legislation was to make American

goods and services more competitive * in foreign markets. The

Service, in conjunction with the

Treasury and Commerce Departments, publicized advantages of

operating a DISC to Chambers of

Commerce and World Trade Committees in 40 cities.

Technical Interpretations

for Taxpayers and

Service Employee s

Many individuals and organizetions write to the Service for interpretive assistance in the form

of letter rulings where the tax

treatment and implications of their

financial transactions are not

clear from the tax law regulations

or published rulings .

Taxpayer and field office requests for technical interpretations and advice in various tax

categories appear below :

REQUESTS FOR TAX RULINGS & TECHNICAL ADVICE (CLOSINGS )

Taxpayers Field

Subject

Tota l

Actuarial Matters

Administratim Provisions

Alcohol, Tobacco & Firearms Taxes

Employment & Self-Employment Taxes

Engineering Questions

Estate and Gift Taxes

Exempt Organizations

Other Excise Taxes

Other Income Tax Matters

Pension Trusts

Total Requests Requests

18,356 15,702 2,654

453 417 36

as 64 21

3,647 2 .754 893

264 219 45

164 92 72

503 "1 62

3.964 3.400 564

322 231 91

6,569 6 .248 321

2,385 1,836 549

4 -.1 . . - 11 - ~ 5
The Service received 13,671 applications from taxpayers for permission to change their accounting period or method, made 953

earnings or profit determinations,

and issued 1,336 supplemental

group rulings to parent exempt

organizations .

Published Rulings and

Procedures Guide Taxpayers

and Service Personne l

Revenue Rulings are published

positions of the Service based

primarily on letter rulings on issues of general interest .

Revenue Procedures announce

internal practices and procedures

that affect taxpayers' rights and

obligations .

The table below shows the number of Revenue Rulings and Revenue Procedures published during 1972 in the various tax categories :

Revenue Rulings and Revenue

Procedures Publishe d

Type Numbe r

Total 704

Administrative 27

Alcohol, Tobacco an d

Firearms 26

Employment taxes 41

Estate and gift taxes 23

Excise taxes 102

Exempt organizations 40

Income tax 372

Pension trusts 65

Tax conventions 8

6

Following Examples Illustrate

Significant Administrative

Interpretations and

Procedures Published :

Revenue Ruling 71-425 provides

that, subject to ce 'tain guidelines

stated therein, amounts received

by a participant in a work-trainIng program, such as a program

under Title V of the Economic

Opportunity Act, are neither includable in gross income nor considered wages for purposes of

withholding income tax or taxes

under the Federal Insurance Contributions Act.

Revenue Ruling 71-447 holds that

a private school that otherwise

meets the requirements of section 501 (c)-(3) of the Code will

not qualify for exemption from

Federal income tax if it does not

have a racially nondiscriminatory

policy as to students .

Revenue Ruling 71-556 presents

detailed guidelines for integration

of benefits or contributions in

qualified pension or profit-sharing plans with benefits provided

under the Social Security Act as

amended through June 30, 1971 .

(Basic integration rules appear

in section 1 .401-3(e) of the regulations .)

Revenue Procedures 72-1 through

72-9 update and restate the general procedures

of

the Service

for issuing rulings and determinalion letters to taxpayers and

technical advice to district offices .

Bulletin Provides

Official Guidance

The Service publishes rulings,

procedures, and other significant

technical developments in the

weekly Internal Revenue Bulletin

for the guidance of taxpayers,

tax practitioners, and Service

personnel .

Bulletins in 1972 contained : &t7

Revenue Rulings, 57 Revenue

Procedures, 14 Public Laws relatIng to Internal Revenue matters,

5 Committee Reports, 8 Executive

Orders, 2 Tax Conventions, 170

Treasury Decisions containing

new or amended regulations, 'It

Delegation Orders, 6 Notices of

Suspension and Disbarment from

practice before the Service, and

229 announcements

of

general

interest . Bulletins also announced

72 notices of acquiescence or

nonacquiescence in adverse doc

isions of the United States Tax

Court. The Service cumulates

semiannually, contents of the

Weekly Bulletins and publishes

these as Cumulative Bulletins .

Regulations Aid in the

Uniform Administration

of Revenue Laws

The Service issues regulations to

furnish its personnel and'th6 public guidelines to minimize administrative discretion and encourage uniformity in application

of the taxing statutes .

Normally, the Service issues proposed regulations through publication of the complete text in a

p ublic notice of proposed rule

making . All notices invite written

comments on the proposed regulations and inform the public of

its right to request a hearing and

to comment at the hearing . After

considering the comments and

suggestions, the Service revises

proposed regulations as necessary. Preparation and publication

of a Treasury decision in the Federal Register follows . These regulations have the force and effect

of law.

At times a new law may require

taxpayers to make important decisions soon after the law's enactment. To aid such taxpayers,

the Service publishes temporary

regulations pending is~uance of

permanent regulations in the normal manner. Where a notice is

unnecessa,ry or impractical, the

Service publishes regulations

without a notice of proposed rule

making .

During the year, the Service held

24 public hearings on proposed

regulations, with total attendance

over 960 .

The Tax Reform Act of 1969 required 179 regulations projects .

The Service also undertook 36

projects to clarify changes made

by the Revenue Act of 1971 . The

following appeared in the Federal

Register on projects associated

with the Tax Reform Act of 1969 :

22 Treasury decisions containing

final regulations ; 3 Treasury decisions containing temporary regulations ; and 39 notices of proposed rule making. These actions

covered income averaging, capital losses, multiple corporations,

charitable remainder trusts, and

reserves for losses on mutual

savings banks . The following appeared in the Federal Register on

projects associated with the Revenue Act of 1971 : 4 Treasury decisions containing temporary regulations; and 3 notices of proposed rule making . These actions

dealt with investment credit and

treatment of corporations qualified as a Domestic International

Sales Corporation . On projects

not under the Tax Reform Act of

1969 or the Revenue Act of 1971,

the following appeared : 24 Treasury decisions containing final regulations ; 4 Treasury decisions

containing temporary regulations ; and 22 notices of proposed

rule making .

Deductible Contributions

Guide For Donors and

Service Personne l

The latest biennial revision of

Publication 78, Cumulative List of

Exempt Organizati ons

'

contains

the names of approx imately 130,-

000 organizations . Cumulative bimonthly supplements, issued in

1972 added 11,430 names to and

deleted 943 names from this list

of organizations to which contributions are deductible for Federal income tax purposes . The

supplements issued in 1971 added 9,871 names to and deleted

1,180 names from the list .

Pension Trust Activity

The number of new pension and

profit-sharing plans continues to

climb . Based on letters of determination issued in the first three

quarters of the fiscal year, corporate pension and profit-sharing

plans were up approximately

31% and 15% respectively. Approximately 35 million people

participated in nongovernmental

pension and profit-sharing plans

of various types . Assets of these

plans were

'

about $151 billion at

the end of 1972 . The large number of people and huge assets

involved in these plans generated

considerable interest on the part

of the Press and the congress.

Determination Letters Issued on Employee Benefit Plans, FY 1972

Profit sharing Pension

and stock drannulty

It"m bmuss plans -plans

Detemni nation letterre I"uej~.1thnelpeln1=91Q a uslification I plans:

. . Pill n .apprered 19,061 : ~ Number of Participating

b . Plans disapproved 241,752

2. 'Termination of plans

3 Armmdm`e'n0t1,s"" 7245,709 4: in-trnents 317 cases closed without issuance o f

determination letter and thertlLsposals' 1,618

Tota l

24,855 43,916

538,94230 780,597 5

ass

.2,657 3,381

14,075 19,784

260 577

2,818 4,436

Alcohol and Tobacco

Industries, and Firearms

and Explosive Materials

Licensees Notified of

Technical Change s

The Service issues industry circulars to keep the alcohol and tobacco industries, firearms licensees, and explosive materials licensees informed about requirements of laws, regulations, rulings, and procedures.

The majority of circulars informed

industry members of Treasury Decislons and/or Revenue Rulings .

Topics in the remaining circulars

included : Environmental impact

statements concerning use of

polyvinyl choloricle plastic in the

manufacture of liquor bottles;

changes in design of green strip

stamps used on bottled-in-bondwhiskey ; revocation of approval

of various food activities used

in alcoholic beverages ; sale of

explosive materials to nonpermittees or nonlicensees ; and application of Federal explosive

regulations on finished common

fireworks .

The Internal Revenue Service's

responsibility for regulation of the

alcohol and tobacco industries

ended at the close of the fiscal

year . The responsibility has been

transferred to the Treasury Department . The next chapter provides information on 1972 accomplishments in the alcohol and

tobacco regulated operations .

7

I

New Challenges in

Enforcement

Enforcement activities help assure that taxpayers compute their

tax liabilities properly and pay according to law. Most important,

these activities serve to maintain

general confidence in the voluntary self-assessment system .

In major enforcement developments Commissioner Walters

'launched an investigation of the

activities of incompetent and unscrupulous tax return preparers .

At the same time, the Service

shouldered new responsibilities

in the tax investigations of key

figures engaged in the narcotics

traffic, as part of the president's

War on Narcotics Trafficers .

The Commissioner, in public

appearances, also expressed

concern about the disparity and

inadequacy of judicial sentences

handed down in tax fraud cases,

as well as the questionable practice of some societies and com-,

mercial associations promoting

conventions and seminars as

business endeavors when they

appear to be shallowly disguised

personal trips or vacations.

Tax Return Preparer s

For some time the Service has

been concerned about unscrupulous tax return preparers, their effect on taxes paid, and their effect

on voluntary compliance . Investigations have disclosed that some

preparers typically increased or

created deductions, or falsified

the number of dependents. During

the 1972 filing period, the Service

launched a nationwide program to

identify and prosecute such tax

return preparers. .

Of the 3200 tax prac titioners contacted throughout the nation, the

Service found that more than

1,800 prepared inaccurate or false

returns . The Service has filed

criminal action against practitioners in 26 states . The program has

led to 430 potential or actual

prosecutions so far, and 55 convictions or guilty pleas .

Throughout the filing period the

Service worked through the news

10

media in cautioning taxpayers to

choose tax return preparers carefully.

The Intelligence Division will continue to monitor activities of suspected practitioners, and the

Service will audit, as necessary,

individual returns prepared by

them .

Abuses by return preparers in

recent years have led to a number

of bills before Congress to provide for regulation or licensing of

return preparers . This appears to

have encouraged an increasing

number of tax practitioners to

take the Service's annual Special

Enrollment Examination to qualify

for practice before the Service .

Deceptive Trade Practices by

Commercial Tax Return

Preparers

A s

ide from evidence of improper

returns preparation, it appears

that the search for increased business by preparers has led to a

number of deceptive trade practices, including misleading advertising, misleading guarantees,

and using customer's tax information for preparation of mailing

lists and other unauthorized purposes.

Number of tax returns examine d

(Figures in thousands)

Type of return

Tota l

1971

Grand total 1,646

Income tax, total 1,487

corporation 130

Individual and fiduciary 1,346

Exempt organization 11

Estate and gift tax 41

Excise and employment tax 117

I less than 1,000 .

The Service and the Federal

Trade Commission have conferred to combat these abuses,

(For a description of pending legislativip proposals see page 57 .)

Some of the nations' largest returns preparation firms have entered into agreements with the

Federal Trade Commission consenting to a cease and desist order on deceptive trade practices .

A number of other agreements

are pending approval . Further,

the Revenue Act of 1971 prohibits

use of a customers' confidential

tax information for purposes

other than the preparation of tax

returns .

Examination Result s

In 1972, the Service examined

1,695,849 returns, 49,920 more

than the preceding year, reversing a nine year downward trend .

Recommendations for additional

assessments reached $3.413 billion . The total included $1 .2 billion in additional tax and penalties recommended underthe team

audit approach used to examine

large corporations . Examinations

cover verification of income, deductions, and computation items

reported on returns.

Individual and fiduciary returns

comprised 79.2 percent of all examinations, and accounted for

29 .3 percent of the additional tax

recommended, while corporation

returns accounted for over 50 per

cent of the additional tax recommended.

The table below shows the number of returns examined in 1971

and 1972 by type of tax .

Field Mile.

1972 1971 1972 1971 1972

1,696 566 593 2,080 1,103

1,497 429 424 1,058 1,073

138 129 135 1 1

1,3" 289 271 1,057 1,072

is 11 is (1) V)

40 36 35 4 5

158 100 133 is 25

The audit activity made impressive gains this year in reducing

its inventory . By the end of the

year, prior year returns in inventory were at the lowest level since

1963 .

Greater Reliance Placed

on Computers To Select

Returns for Audit

In 1969, the Service Introduced

the Discriminant Function System

(DIF), to select returns for examination . The system uses compute rs; to classify and rank individual

income tax returns by error potential . In that way the Service

can select returns with the highest probability of errors.

In addition to producing a higher

tax yield, the system assures uniformity by using the same criteria

to screen all individual income

tax returns . Another advantage, is

fewer audits that result in no tax

changes, thus improving taxpayer

relations and operational efficiency. This year, the Service

agreed with the tax liabilities reported by taxpayers in 32 percent

of the returns audited, a record

low.

Number of Tax Returns Examined

Percent of Total Returns Examined

by Type of Tax

Additional Tax and Penalties Recommende d

!;d"

".r%

.1,

U.6 E-1

Percent of Total Additional Tax

Recommended by Type of Tax

9-
Studying output data for a joint audit-inteill.

pence Investigation 1, the Ogden Service

Center ..movie, .am a,.: (L to .) Henry

Philcox, Computer Audit Specialist, Reno

viwftl~ Ralph IngbWear, Assistant Division

Chief, ht'; Data Convention, Ogden Service Can.

g.rcand ClIff Rich, Weals. Regional Inf.1li-

. Analyst.

Increased Computer

Assisted Audit s

Computer assisted techniques

play an important role in tax audits of automatic data processing

accounting systems . Large

masses of data which meet predetermined audit criteria are

scanned, analyzed, and recomputed at tremendous speed . This

technique produces printouts of

manageable size, thus saving

considerable resources for the

Service and taxpayers .

Revenue Ruling 71-20, requires

that taxpayers retain pertinent

computerized tax records . The

Service has completed record

evaluation requests for a substantial number of taxpayers. After

evaluation, Service personnel advise the taxpayers as to which

records to retain in machine-.

sensible form .

Joint Committee

Reviews Large

Overassessments

A report on all refunds and credits ;

on income, estate and gift taxes,

over $100,000 must be sent to the

Joint Committee on Internal Revenue Taxation, as required by

law . During 1972, the Service reported 1,171 cases involving overassessments of $756.1 million to

the Joint Committee, as compared with 790 cases and $518 .3

million in overassessments in

1971 .

Exempt Organization

Program

Exempt organizations classified

as private foundations reported

more than $4 .3 million as initial

taxes under the excise tax provisions of the Tax Reform Act of

1969 .

The Service makes every effort to

keep pace with its two-year audit

cycle for large exempt organizations and its five-year cycle for

private foundations . In 1972, the

Service issued determination letters to 23 thousand organizations

that applied for confirmation of

tax exempt status under the law.

In addition, the Service withdrew

advance assurance of the deductibility of contributions from 45 private schools that failed to establish a racially nondiscriminatory

admissions policy.

The Exempt Organization Master

File (EOMF) continued to grow.

The number of exempt organizelions in the file has increased

from 309 , 000 in 1967 to 535,00D in

1972 . The rate of growth in 1972

was almost 5 percent .

Team Audit Technique

Used for Large

Taxpayers

The Audit Division uses the team

audit technique in examing complex corporate structures . Many

corporations have diverse activities, intricate practices and transactions, and widely dispersed

operations across the nation and

in foreign countries For these

reasons, the teams ~ay require

engineer agents, international

examiners, actuaries, data processing specialists, attorneys, statisticians, and economists .

Expansion of Audit

Concepts to Service

Centers

Service centers conducted several correspondence aydit programs in 1972, including the new

Unallowable Items Program . This

is a low cost audit program which

uses computers to contact taxpayers about deductions which

appear to be unallowable by law.

Typical unallowable items Include

dividends exclusions in excess of

the amount allowable, failure to

reduce medical expenses by the

percent of adjusted gross income,

and the taking of fractional exemptions . In the period of January 1 to June 30, the Service corrected 452,521 unallowable items

returns producing revenue of

$24 .2 million.

The Information Document

Matching Program matches information documents and other records filed with the Service with information reported on individual

tax returns, thereby identifying

persons who failed to report all of

their income . Forms W-2 (Wage

and Tax Statement) and Forms

1099 (U .S . Information Return)

are principally used in this program .

The Multiple Filer Audit Program

began in the final months of 1972 . Computers analyzed individual

returns to determine If more than

one return had been filed under

the same social security number .

In, many instances, married taxpayers filed two joint returns or

separate returns and claimed duplicate exemptions or deductions, usually because of a misunderstanding in filing requirements . The Service sent letters

to taxpayers explaining the error

and proper return filing requirements and statements of additional tax due,

Art Panel Assists

in Evaluation s

Since 1968, a panel of art experts

has been assisting the Service in

determining whether realistic valuations have been placed on contributed works of art and on art

objects valued for estate tax purposes .

The panel met three times in 1972

and reviewed 711 works of art

valued in tax returns at more than

$18 million . The panel recommended a 30 percent reduction In

the claimed value of works of art

for charitable contributions and

a 25 percent increase in the value

of art objects included in estates .

In its four years of operation, the

panel has reviewed approximately $70 million worth of art and has

recommended adjustments of approximately $20 million .

12 13
Administrative Appeals

System

General

The appeals function of the Service provides the taxpayer who disagrees with a proposed adjustment to his tax liability an opportunity for an early, independent

review of his case. The purpose

is to enable the taxpayer to settle

his case promptly, without litigation, on a fair and impartial basis .

The appeals function is decentralized and operates in 58 district offices and 40 regional appellate offices. As need arises,

the Service provides conferences

at other locations . The taxpayer

can go to either the district or regional office for an Initial conference .

Although differences in authority

and jurisdiction exist, both district and regional offices have the

same objective-to resolve cases

as soon as possible on a basis

which reflects a fair administration of the law . The principal difference in authority is that only

regional appellate offices may

dispose of cases by considering

hazards of litigation, that is, uncertainty as to outcome in the

event of trial . The appellate division has this authority in keeping

with longstanding Service policy

which favors administrative settlements over protracted litigation .

Cases considered involve all

types of taxes except those on

alcohol, tobacco, firearms, narcotics and wagering . Issues run

from the most elementary to the

most complex, and deficiencies

in tax from a few dollars to many

millions . Claims for refund of tax

and offers in compromise also

rate consideration.

In most cases Service conferees

and taxpayers reach a mutually

acceptable basis for resolving the

dispute, as a result, a relatively

few cases actually go to trial . The

Service closed over 98 percent of

all cases without trial in the last

seven years, and this year the appeals function achieved the greatest number of case disposals per

conferee in history .

District Conference C. .. W .,X-I ..d

Case pending July

Cos" received

Conference complat

Number agreed

Agreed as a percent Of total

Cases pending June 30

Early Informal

Hearing Provided

At both district and appellate levels, the Service offers a conference soon after the case is recalved . To the extent possitFle,

the Service arranges a date, time,

and place most convenient to the

taxpayer. Where the disputed tax

is less than $2,500, the taxpayer

need not file a written protest for

conference in the district office.

The same rule applies In the reglonal appellate office if the taxpayer has first availed himself of

a district conference .

Informal proceedings prevail at

both levels and the taxpayer may

represent himself or have counsel . If a conference fails to produce agreement, the Service informs the taxpayer of his additional rights and options .

In 1972, the appeals function disposed of 52,189 cases by agreement ; the Tax Court decided

1,096 cases ; U .S . District Courts,

and the Court of Claims decided

460 cases.

About half of the cases closed by

agreement are at the district level

and half at the appellate level .

District conference staffs obtained agreement on about twothirds of the cases . Activity in the

district conference staffs appear

in the table below :

Field Office

Audit Audit Total

8,769 3,1125 12,594

24.882 17 .250 42,132

24,141 1 1 166 8 11 :8 2 40,769

4.86 53 26,714

61.5 71.2 65.5

91510 4,447 23,957

Appeal Options Available

to Taxpayer

If there is no agreement at either

district or regional level, the taxpayer can, in most instances,

file an appeal with the Tax Court .

Even though this is done, and the

case is docketed for trial, the taxpayer may still reach a settlement

with the appellate office . Except

in unusual circumstances, the

timely filing of an appeal with the

Tax Court stays the assessment

and collection of the tax until the

Court has entered its decision .

As an alternative to trial in the Tax

Court, the taxpayer can pay the

deficiency in tax, file a claim for

refund (at any time within two

years from date of payment) and

after either denial of the claim by

the Service, or after 6 months

from date of filing, enter suit for

recovery against the Government

in either. a United States district

court or the Court of Claims .

Appellate Receipts

and Disposals

Receipts in regional appellate offices had remained even at about

33,000 cases in each of the past

four years . This year receipts increased to 34,278. Both nondocketed and docketed case receipts increased over the prior

year .

There also was a substantial increase in docketed cases involving $1,000 or less of disputed tax

(for which special simplified provisions were made in the Tax Reform Act of 1969) . In 1968, the

Service received 972 cases ; in

1969, 1970, 1971 and 1972 receipts were 1,267, 2,100, 2,781

and 3,321, respectively. Most of

these cases were ultimately settled .

About 75 percent of the appellate

workload consists of nondocketed income, estate, gift, exise

and employment tax cases. In

1972, appellate offices closed 78

percent of these cases by agreement with the taxpayer. Agreements in this category have averaged more than 80 percent over

the past 5 years.

Taxpayers filed petitions for hearings before the Tax Court in 8,945

cases in 1972, as compared to

6,968 cases in 1970 and 8,299

cases in 1971 . The increase was

largely in the small case category

where the Service offers informal

procedures . Settlement negotiations on docketed cases continue

and most cases are ultimately

settled without trial .

The following table and chart

shows the processing of both

nondocketed and docketed cases

I n 1971 and 1972 . (For additional

information see tables 12 and 13,

page 123 ) .

Appellate Division processing of all cases for 1971-1972 (Income, estate, gift, exci ..,

employment, and offers-in-compromise)

Statu s

Pending July I

Received

Disposed of, Tota l

By agreement

Unagreed (overassessments, claims, excise. employment,

Byand ffer-in-c-promise rejections )

taxpayer default on statutory notice of dismisse( by

Tax Court

By petition to the Tax Court

Tried in the Tax Court

Pending June 30

Failure To Pay by the

Prescribed Date

The Service makes every reasonable effort to collect taxes due,

starting with notices to taxpayers

requesting payment and then establishing delinquent accounts

for assignment to enforcement

personnel .

New Delinquent

Accounts Dro p

Establishment of delinquent accounts declined in 1972 despite

continued growth in population

and taxable income . Principal factors were : (1) increased use of th e

Number of cases

1971 1972

33,468 33,491

32 .682 34,278

32.659 22,898

25 .804 25,475

1,474 1 .885

1,602 1.855

2,814 2,58 7

965 1,096

33,491 34,87 1

APPEALS- DISPOSALS IN REGIONAL APPELLATE DIVISION OFFICE S

IsNONDOCXUED CASES CASES DOCKETED IN TAX COURT

I.-

Asa

IN DEPARTMENT OF

JUSTICE ON

REFUND SUITS

- I14 is
I

essing system to mail out tax bills ;

(2) the impact of recent tax legislation which removed many low

income taxpayers from the tax

rolls ; and (3) some easing in economic conditions . The Service established 2.6 million delinquent

accounts, 202,000 or 7 .2 percent

fewer than last year . The amount

of delinquent tax also dropped by

$298 million or 8 .5 percent to

$3 .2 billion.

Disposals Down Slightly But

Inventory Down Sharply

The Service disposed of 2 .7 million delinquent accounts in 1972 .

This was a decline of 138,000

accounts or 4 .8 percent below

1971 . Delinquent taxes collected

amounted to $2 .2 billion, which is

$265 million below 1971 .

The relatively small reduction in

disposals is evidence of notable

accomplishment considering : (1)

increased budgetary limitations ;

(2) heavy manpower demands imposed by the Economic Stabilization Program which drained 1 .3

million man hours from this enforcement area ; and (3) expanded

Taxpayer Service activity instituted in April, which further limited available manpower.'

For the second successive year,

the inventory of delinquent accounts declined . The 1972 level

of 659,000 accounts is the lowest

point reached since 1965, and

represents a reduction of 100,000

accounts, or 13 .2 percent, below

1971 . The $1 .9 billion value of

these accounts is $2.4 million less

than the prior year's .

Taxpayer Delinquent Accounts

Status

- Us sa .- ut rrompix

identification of Federal

Tax Deposit Offenders

The Service is concerned especially with the failure of employers to deposit taxes withheld from

employees' wages because in effect, it represents a misappropriation of funds that belong to the

Government. To combat the problem, the Service initiated a Federal Tax Deposit (FTD) Alert Program . The program involves early

identification of potential offenders through use of data processing . The system determines which

employers,have failed to make deposits . A notice then alerts an enforcement officer who calls on the

employer to determine why he has

not complied .

Automatic Data

Processing System

Aids Program Against

Delinquent Filer s

The Service's automatic data

processing system played a major

role in detecting non-filers, first

by monitoring and following up

preselected types; of delinquent

accounts, and secondly by increasing the use of four master

files to issue automatic delinquency notices or investigations.

These factors permitted a greater

development of enforcement personnel in seeking out non-filers,

thereby reversing the fall-off that

had occurred in recent years because of budgetary limitations .

Number Amount

(thoussend .) (thousand dollars)

197 1

Issued 2.4121

Disposed, mal 2,847

By type of action:

Collected 2,265

Additional Collections -

011her Disposals' 51

Pendina June 30, total 7592

1972 1971 1972

2.619 $3,509,677 $3.211,963

2.709 3,579,694 3,337,947

2,164 2,498,077 2=2.953

- 108,761 S4 .632

546 972,856 1,010,364

659 $1,899,804 $11,897 .38 4

I includes disposals due to nc .liectibility, erroneous and duplicate assessments, PayMont tracer and adjustment cases.

16

I axpayer Uelinquent Accounts

Millicepus of Dollars

35 " 310 3212

1

EsUblished Closed

38

Increase in Number of

Delinquent Returns Secured

The Service secured 815,000 delinquent returns valued at $452

million . This compares with 735,-

000 delinquent returns assessed

at $489 million in fiscal year 1971 . *

Master Files-The Operational

Foundation of Tax Delinquent

Returns Progra m

The business master file (BMF),

the individual master file (IMF),

the exempt organization master

file (EOMF), and the residual master file (RMF) provide the operational foundation for a major portion of delinquent returns activity.

Each has a routine tailored to

meet variations in tax regulations

and filing requirements and issues

a delinquency notice or investigation in every apparent non-filer

situation .

The business master file deals

with several classes of tax. The

Service can program BMF to deliver a single investigation for one

or more tax periods during the

year . This elminates massive paperwork as well as multiple an-.

forcement contacts, since the

computer will not issue another

investigation or accept as satisfactory any completed investigation which does not satisfy all

periods of delinquency .

The in

'

dividual master file provides an annual delinquency

check for instances of non-filing

of individual income tax returns.

The exempt organization master

file (EOMF) is relatively new. Programs implemented under EOMF

provide for issuing delinquency

letters and taxpayer delinquency

investigations .

The residual master file (RMF)

provides processing and handling

operations for a variety of returns

of limited volume or unusual characteristics which did not adapt

well to earlier mechanization . The

RMF also provides timely issuance of delinquency notices and

subsequent delinquency investigations whenever required returns are not forthcoming .

Over half of all apparent non-filer

cases are resolved through computer generated issuances . For

tax year 1970, the I ndividual master file selected over 500,000 nonfiler cases for delinquency checking, over twice as many as ever

before .

New Programs in

Returns Compliance

Among several specialized programs in progress is a survey of

12,000 airport facilities across the

country to insure compliance with

tax provisions of the Airport and

Airway Revenue Act of 1970. Another program involves a nationwide effort to achieve a higher

level of compliance with Federal

Highway Use Tax laws. Through

use of available information, the

Service will identify virtually all

motor vehicles, or vehicle owners potentially liable for this tax .

Expected benefits include a substantial revenue return and greater awareness of the tax requirements among all segments of the

truck-owning public .

Returns compliance programs underway and planned involve coordination with nearly every mal. or

Federal department or agency

and a number of private firms . The

Servic& compares data from

these sources against the various

master tax files for possible delinquency .

While actual tax liabilities of some

taxpayers may be slight in comparison with their neighbor's, all

taxpayers have an obligation to

file what is required and pay what

is due. Thus, the Service includes

a significant number of individuals and smaller business entities .

Enforcement Approach

Geared to Reduce

Non-Compliance

The Service trains enforcement

personnel to review all possible

returns delinquencies whenever

taxpayers are interviewed in apparent non-filer situations . For example, a self-employed individual,

delinquent in filing an income tax

return, may not have filed returns

for recent income tax periods .

The Service will also check for

business tax returns if the taxpayer employs other people, or

for excise tax returns if required .

Results from

Direct Enforcement

Maps. of wisrs

I'll

1.

Tax Fraud Investigations

and the Intelligence

Divisio n

The Intelligence Division Identifies areas of noncompliance and

enforces the criminal sanctions of

the Internal Revenue Code. The

Intelligence function employed

over 3000 technical and clerical

employees in 1972 .

Tax Fraud Investigations,

Indictments, and Convictions

The Service completed 8,882

fraud investigations during the

year, with prosecution recommended in 1,777 cases . Agents

screened more than 132,000 allegations of fraud in selecting the

investigative caseload .

Grand juries indicted 1,074 defendants in tax fraud cases in fiscal 1972 . A total of 772 defendants

pleaded guilty ; courts convicted

113 defendants after trial and acquitted 39, and dismissed 137 .

Intelligence Compliance

Progra m

The Service conducted a program

I identify patterns of noncompliance o f by homogeneous groups of

taxpayers, and areas of noncompliance not covered in other programs .

Service investigators made compliance checks of more than 250

professions, occupations, businesses, industries, and income information sources . Among pockets of noncompliance located

were sub-contractors in the construction Industry, area managers

in the direct selling industry, insurance salesmen, recipients of

land condemnation awards, attomeys, and persons liable for

highway use taxes . The Service

imposes criminal sanctions where

evidence of tax evasion is discovered, and takes remedial action to

assure future compliance .

For example, offices in several

areas inquired into compliance

with reporting income requirements by private duty nurses .

All offices found noncompliance

where payments were made in

cash without issuing information

17
documents (Forms 1099 or W-2).

In one district, the State Nurses

Association published an article

on the results of the compliance

test, advising nurses to report

their income from private assignments .

Another project involved scrap

metal and textile waste operators .

Here, agents examined 258 returns and recommended deficiencies of $488,307 . They also

recommended prosecution of five

industry officials .

The impact on voluntary compliance is apparent. Agents examined returns of hospital medical employees who had not

reported wages paid from scholarship funds . The major hospitals

which had been paying employees from scholarship funds transferred $500,000 annually to accounts to be included in future

withholding tax statements .

Another investigation disclosed

$3.4 million in unreported income

earned by policemen in a large

metropolitan area . More than

1900 policemen had not reported

on their tax returns earnings from

private employers for police related security jobs, such as

guarding property, crowd control,

and watching for shoplifters . The

police department assigned policemen on a rotation basis. Five

employers paid the department

which in turn paid the policemen.

The department did not withhold

tax or file information reports.

City officials cooperated in correcting the situation .

A midwestern district found that

house-to-house cosmetics sales

can be big business . A revenue

agent audited a parent corporation and recorded serial numbers

of United Savings Bonds awarded

as prizes to sales persons who

sold at least $3,000 in cosmetics

during an eighteen-week period.

The firm had awarded as prizes

approximately $4,000,000 in

United States Savings Bonds . An

inspection of the tax returns of

known sales representatives disclosed that 80 percent either

failed to file or made no mention

of theirselling activity.

The Service had found that zone

managers receive millions of dollars in promotional expenses with

no accounting required nor withholding statements issued . One

company disburses about $650,-

000 in promotional expenses each

year . This same company pays

commissions of about $11,000,000

a year of which only $3,000,000

appears on information returns .

Sentencing i n

Tax Evasion Cases

Nationwide, only 43 percent of

those convicted in income tax

cases received jail terms . Comparisons of the sentencing practices by judicial districts reflect

wide disparities .

In the first quarter of 1972 for example, courts in the Eastern District of Michigan handed down 10

sentences and imposed no prison

terms . Four of the cases involved

additional taxes and penallties of

$95,250, $203,552, $191,399, and

$164,664 . During the same period,

the court in the Central Distri ct

California ordered no confine-of

ments for six tax evasion convicts .

On the other hand, tax violators

go to jail in the Southern District

of Texas . Three recent sentences

included a six-month term and

two four-year terms.

In Philadelphia, courts ordered

confinement for ten income tax

evaders . They are : EDWARD P.

SWARTZ, a physician and former

Public Health Director, six-month

jail sentence ; MORRIS WEINER,

• prominent dress manufacturer,

• one-year prison sentence ;

JOHN C . PARENTI, a major racketeer, a one-year prison sentence ;

IRVING H . MYERS, a business executive, a one-year sentence ;

PAUL G . HOFFMAN, a restaurant

operator, 100 days imprisonment ;

ANTHONY KLIJJIAN, a roofing

contractor, six months imprisonment ; ANTHONY LEMISCH, a

voting machines salesman, six

months imprisonment ; WILLIAM

J. KILROY, a "political expeditor", 90 days imprisonment ;

LOUIS SALERNO, 60 days imprisonment; and FRED L . MATHERN

four months imprisonment . Some

of these defendants also paid

large fines .

Interesting Cases

The court fined Dan B . Ball, a former county judge, $30,000 and

placed him on five years probation forevading part of his income

taxes over a four-year period .

During these four years, he prepared more than 800 income tax

returns for other people.

John S . Allessio, a race track officlal, received three years in

prison and a $20,000 fine for income tax evasion ; and his brother, Angelo Allessio, also associated with the race track, recalved a sentence of one year in

prison and a fine of $20,000 . Add it ional taxes and penalties in the

case exceeded $6,000,000.

Gregory Taylor, a narcotics distributor, received a sentence of

five years in prison and a fine of

$30,000 for income tax evasion .

A lengthy arrest record and several previous prison confinements, plus the cooperation of

the U .S . Bureau of Engraving and

Printing helped to refute his claim

of a cash hoard used to pay for

substantial real estate, automobiles, jewelry, and other expenditures.

Lee W. Merrich, a dog food proc..

essor, received a sentence of

eighteen months in prison for income tax evasion on unreported

sales of $170,000 . Cooperation

from Canadian tax authorities

made it possible to locate currency deposits of $142,000 in a

Canadian bank account. He had

made the bulk of unniported sales

to a wholesaler of meat for human

consumption . This meat came

from the same supply processed

for dog food sales.

Morris Greenberg, an attorney,

received a sentence of ninety

days in prison and a fine of $to,-

000 for failure to file interest

equalization tax returns . One incriminating factor was a letter he

had written to a Canadian stock

transfer agent explaining the interest equalization tax provisions.

Emmett J . Ayo, a night club operator, received a sentence of three

years in prison for income tax

evasion after understating income

by $228,000 over a four year period .

Phillip Armento, Sr ., a county assessor, received a sentence of

three years in prison for income

tax evasion . This scheme involved special handling of personal property tax bills and real

estate valuations for fees not reported on his tax returns .

Lionel E . Clark, a former county

judge received a sentence of one

year in prison for failure to file

income tax returns for four years.

During this period his gross income was $62,352.

Nelson E . Weber,, an aircraft insurance executive, received a

prison term through revocation of

probation of a previous tax evasion sentence . Part of the conditions of probation involved full

settlement of his $170,000 tax

liability . Instead, he filed an offer

in compromise proposing to settie his liability for $10,000 based

on stated assets of only $13,000 .

Agents discovered an undisclosed safe deposit box containing over $219,000 . They seized

the money to apply to his tax

liability.

James G . Waller, a funeral home

director, received a sentence of

three years in prison for understating business receipts by

$210,000 .

Referrals to the

Department of Justice

This year, the Service forwarded

prosecution recommiendations to

the Department of Justice in 1,355

income and miscellaneous criminal cases (involving 1,364 prospective defendants) . Compared

with the prior year, this was an

increase of 33 percent in the number of referrals. In 1972, indictments in such cases were up 13

percent .

In income, excise, and wagering

tax criminal cases, the court results included : 733 guilty or nolo

contenclere (no contest) pleas,

113 convictions after trial, 40

acquittals, and 151 dismissals .

A comparison of indictments and

court actions for the last two

years follows :

Results of criminal action in tax fraud cases

Action

Total

Irldicinnentsand Informations

Disposals, total

Pleal, guilty or noJo contenclere

Convicted after trial Acquitted .

Nol-prossed or dismissed

Income and rni.-Urmeou..-I

Indictments and Information s

Disposals, tota l

Plea, guilty or nolo countendere

Convicted after tria l

Acquitted

Nol-plasslid or dismissed

Wagering Tax Calue s

I rolictments and informations

Disposals, total

Ples, guilty or mlo contemiConvicted afterthAcquitted 2

lial l

Nol-prossed or dismissed 21 1

1

4

Include cases dismissed for the following reasons : 10 because of d path of principal

de~endant, S6 because of serious illness, and 102 because principal defendant had pleaded

guilty or had been convicted in . related case .

2 Includes income, estate, gift, and excise taxes other than wagering, alcohol, tobacco,

and firearms taxes .

Cases Involving

Criminal Prosecution

Cases received in the Chief Q*ounsets' Office with recommendations of criminal prosecution involved additional taxes and penalties of $193 million. This was

$14 million more than the prior

year. An analysis of the receipt

and disposal of criminal cases in

the Chief Counsel's Office follows :

Receipt and disposal of criminal cases in Chief Counsel's Offic e

PemdIn87j6fy I

Received, total

1071

2,266----

With recommendations for pnrsecutfon

With requests for opinion, etc.

Oisposed of, total

Prosecution mot %varranted

Department of Justice deeClined

Prosecutions

Opinions delivered

All other closings

Pending June 30

IsNumbefoldefenciants

_71 1972

956 IM5

997 1=7

645 723

142 113

-S3

40

.,0574,

i'm 1

638 722

136 113

9655 39 ,

t 32 137

I I r 1 4 11

36

7 1

26

1

6

2,313

1.204

1 109

r052

79

48

759

46

120

2,467

1972

1,523

'157

1,285

9457

I,Wsas

197

2,7

18 19
(Million, of dollars)

I __. . . . .. . ieve, or me U.system beat! years 1971 and 197 2

hmernal ravennue collections . tout T19-1-16117-11 -209 .856

Individual income taxes. total

Do Wildholding INZ

['1118A79

Ott, . aa~trfo

Zt= 15,STG

Corporation income taxes

0=0

34=9

Estate amd4ift taxes 5,490 133 .784

Employment taxes 43,714 3

Eachgo tax 16 72 ;18 16.847

I

a

Civil Causes

Additional to . and joeirlaftleff inci-5 INS~ of I .

ounift divisions by Agreement. payment for cletauft

Additional tax and penalties in aeas disposed of

in appellate divisions by agreammult, payment

of defaul t

Additional taxand penalties determined by

itardthemeort Wr= Goo d

Additiortual tax&W penalties determined by Tax

Court decisions:

Dismissed

Decisions an merits

Additional tax superame gold penalties in cieses, decided try

court"n" c"M of appeals

,b'V.M

MfUnded to taxpayous as .result of refund. -it,

I

fraud cases t

Deficiencies and penalties In cases disposed of in

ProosCatio-Voomemanded

Pwaseatior, Deptuanent net warranted and caseeideclined by

of Justice

1,499 1,419

349

101

21

229

57

172

25

106

17S

2643

223

I Includes excise taxes

rross tax, penalties and interest resulting from direct nfa,.. ..nt

(in Thousands of dollars)

His.

Additional tax. penalties. and interest aS%esW, total

Free" "'"'Instion

of tax returns, total

;ncema tax, total

Cgirpongtion

4IE2

~4=705 1 4~iilild?

2,708,153 1 3,203,724

2.250,813 2,101113,2112

1,5m=3 1,127 .241

747,25D 156,021

345,210 =1143

62,508 VSA34

49.S52 =405

M3 052 11 :2

512:141 174oM

489 .359 t .432.324

Este IndlVidual and fiduciary

teand gift tax

Emplumolse, tax (including withhold income Me)

Excise tax

lend" engtheromUcal va"ificaften of income tax returns

Finam Inevillhattion of estimated to. payments claimed fj

From delinquent returns secured. tout

fly district collection division

13Y district alldit divisions s

I 427 647 ZN 670

61 :712 711 :i~i

Tax and penalty and number of tax years involved in criminal fraud case disposal .

(Exclusive of wagering and coln-apemted gaming device ages)

mistrastitich 971 1972

Total 2= 3

.344

$107 77g,4Z3 $"'112t,774

Proseecutions 2,509 JIM2 i~~7,951 ss.Tn=7

Aflothercldofhhfdf~ 454 37,330,"r, 223315 477

includes cases declined by Department of Justice,

20

Summary of Additional

Taxes from Direct

Enforcement

Additional revenue resulting from

direct enforcement historically

has represented a relatively small

part of total tax collections, The

main imp6rtance of direct en,

forcement cannot be expressed in

dollars . Its importance lies in reassuring the public that the Service has an effective enforcement

system, and a balanced program

aimed at equitable enforcement

of the law for all taxpayers, regardiess of position or wealth.

The table below sets forth for the

last two years the source of additional tax, penalities, and interest

assesed and certain other results

of direct enforcement .

Additional detail on legal workload involved in the prosecution

of criminal cases by Service attorneys during the past two years

appears in the table at the left .

Workflow in the Service

and the Courts

The unit of measurement at the

audit level is a return . In the Appellate and Intelligence Divisions,

as well as in the courts, the work

unit is the case . A case may involve more than one return and

more than one taxpayer. The table at the right reflects comparative data on actions completed

by the Service during 1971 and

1972 .

End of Era in

Regulated Operations

The Internal Revenue Service's

responsibility for regulation of the

alcohol and tobacco industries to

assure compliance with various

Federal requirements ended at

the close of fiscal year 1972 after

110 years . This responsibility and

firearms control activities, have

been transferred to the Treasury

Department's Bureau of Alcohol

Tobacco and Firearms . In 197~

the number of plants regulated

remained fairly stable, as did the

number of activities requiring

compliance inspections . The table at the right and the first

table on the next page reflect

production volume and revenue

control manpower use for fiscal

year 1972 .

0 - 13 - 3

Workflow in the Internal Revenue Service and the courts, fiscal years 1971 and 107 2

'TWiri6mis India, teiaFIndividual income

Corporation income

Estate and gift

Employ. t

Excise

Other income

Income, Estate, *no G

iF

L li,71 -72

~W,446,§30 '111240111.449

76,619,563 77,105AS3

1,820,556 1 sibl'al 9

314 .913 =1576

21 .889 .343 22AO7435

2,400,704 11,3110,812

L_2.401,85- 1 9 .312.21 4

Number of refurims examined (Including terms 9901 1,5N,454 1,U7,30

it fir djustments proposed by audit divisions 1.006,W 1,024.005

Disposed of by audit divisions:

Agreed. paid, or obstaild led 956,311 111113.2116 0 me with 8

Transferred to appellaIt'a 46,119 36,723

other 3,895 t 4,036

ciol cew s

Total received in appellate, division =LiVA

Disposed of by appellate divisions: Agreed,pald, or

defaulted 20--77 18,883

L~o.ft. of .49inall jurisdiction !

Total petitioned to Tax Court Sam 8,949

Dismissed

Settled by stipulation r

567 654

'287 11,673

Settled by Tax C*urL decision 06 Sao

byTA t . but p 1 338 ad 288

I

District courts and Court of Claims:

Tout filed in district courts anti Court of Claim 1.177 1 A42

Settled In district courts and Court of Cie I ms 647 B36

Decided bydistriCtcmrtsand Courtof Claims ___!SO L ----!go

Settled by courts of appeals decision 355_'~ 463 Favorable 1.Government 237 2" Favorable to taxpayers 95 128

Modified 23 is

Decided by court of appeals but mi~ by

Worteme Court 5

Supreme Court Settled by SuPmm& Ceurt decision 4 1 5

Fraud cesesi

IT-1pition in intelfil

divisions 2,482 2.S40

Disposed of be intelligence difrisivers;

Pvtfuscution recommend po,,.cut,ce, net 1:379 11795

recommended 1 142

1

486 Disposed of by Office of Chief Ccureet h

Pnosecutim not warranted, including cases declined

by the Department of Justice

ProsectiI, i.-

Includes excise tax cases .

Production by alcohol and tba ... industries, fittest Yet, 197 2

Distilledst,'

still wine ReCUlled distilled spirit iri's .

759 1

764.4 million tax gallons

120

.7 million proof gallons

389a

i

efter~uscfxnt wines 22.9 million gallons

vermouth and other special 64 .5 fill- gallons

natural I.-

Beer 140.3 Million gallons

Large cigars

Small Offous

Cigarette.

165 .6 million

596 .6 billion

151

1,op q

~281.7 million gallons removed from bonded storage after determination of taxes due

(in .l.de. 30 .3 million gallons of imported spirits transferred from Customs custody to

bonded storage) ; 525 .3 million gallons tax freeF 1,107.6 million gallons in bonded storage

at end of year.
Liquor Law Enforcement

Extensive use of manpower to

meet expanded enforcement and

regulatory responsibilities associated with intensified firearms

and explosive programs has had

an impact on Illicit liquor Investigations . In 1972, the Service used

only 29 .4 percent of the investigator force for liquor law enforcement .

Illicit distillery seizures for 1972

totaled 2,090, compared to 2,272

in 1971 . Similar declines occurred

in seizures of mash and non-tax

paid spirits . A more detailed summary of accomplishments in liquor law enforcement is shown below .

Seizures of most of the nation's

illicit distilleries occur in the

Southeast Region and portions of

the Central and Southwest Regions . The overwhelming majority

of these operations exist in the

rural areas of Alabama, Georgia,

South Carolina, North Carolina,

Mississippi, Tennessee, and Florida.

"Operation Dry-Up," a program

employing heavy concentration of

Federal officers in three states of

the Southeast Region, continues

to curb non-taxpaid whiskey traffic. This, along with stringent sentences in some court districts, has

reduced the number of persons

deriving income from unregistered distilleries .

Revenue GrowthAlcohol and Tobacco Taxes

Distilled spirits revenue rose to

$3 .761 billion in fiscal year 1972,

and tobacco taxpayments increased to $2 .207 billion In the

same period . The following table

presents data on alcohol and tobacco tax collections reflecting

the growth from 1863 to 1972 .

ATF revenue central manpower use

1971 107-1

Plants and permiteas subject to IRS regulatory control

(excludes retail liquor defilers):

Inspector man-years realized a3i

On-site inspections completed 22,673 21,615 850

Days of industry operation rec~uiring n.farmises,

supervision 134,040 135,071

Permits issued, amended and terminated 24,471 21 A92

Claim, offers-in-compromi- and assessment s

reviewed and processed 39,146 36,466

Results of criminal action in alcohol and tobacco case s

Action

Indictments and information

Disposals, tota l

Plan, guilty or nolo contehdere

Convicted alter trial

Acquitted

Nol-prossed or dismisse d

Seizures and arrests far alcohol and tobacco violations

It. .

Seizures ;

Distilleries

Stilts at distilleries

Non-taxpaid distilled spirits

Mash

Vehicles

Property (appraised value)

Arrests

Alcoholic Beverage

Advertising, Labeling ,

Trade Practices

Distillers, blenders an d bottlers

of spirits, producers and blenders

of wine, and wholesalers and importers of all alcoholic beverages,

operate under permits subject to

suspension or revocation for any

violation of Federal liquor laws .

in 1972, the Service revoked two

permits and suspended one permit while closing 83 cases involving violations of the Federal Alcohol Administration Act and the

Internal Revenue Code through

acceptance of offers-in-compromise totaling $106,900 .

Revenue growth of alcohol and tobacco industries

(Amount-Thousand Dollam)

Distilled Spirits

Wi a

Beer

Tobacco Products

1863 197 2

3,3000 3,760,915.b

8.8 101,223.0

11558 .1 1,167,663.0

3,055.6 2,207,273.0

HUMber of defendants

1971 1972

3,054 3,029

3,169 3~lll

2,166 2,115

612 478

107 M

284 2711

1971 1972 '

number 2,272

do 3327 2108 2'0901

gallons 78,878 67'satz

do 1,387,986 .236,917

number 815 790

dollars 1,071,138 :,490,686

number 3.222 3.19 1

Advertising Of alcoholic bever .

ages must conform to statutory

and regulatory requirements and

prohibitions. To insure compli .-

ance, the Service examines ad-.

vertising in a selected grouping

of newspapers and magazines ol

general circulation, and trade

publications . Service personnel

examined more than 18,000 publications containing alcoholic

beverage advertisements during

the year. In addition, comment Is

offered on proposed advertising

themes or campaigns submitted

for examination .

Bottlers of distilled spirits, wines

and malt beverages, and importers of such products, must obtain

certificates of label approval (or

certificates of exemption from label approval for intrastate bot.

tling) prior to removal of bottled

goods from establishments or

Customs custody. This year, the

Service approved 55,955 certifiCates of label approval and disapproved 766 labels covering all

classes and types of alcoholic

beverages .

Alcohol, Tobacco and

Firearms Laboratories

Sophisticated equipment and additional space enabled the National Office Laboratory and the

three field laboratories to broaden

the services offered in law enforcement and revenue control .

The number of criminal enforcement samples continued to increase. In 1972, the Service analyzed 46,542 samples compared

to 33,374 in fiscal 1971 .

Chemical Staff Activities

The laboratory received a large

number of requests for non-alcoholic beverage flavors for special

natural wines . Since artificial colors are not permitted In special

natural wines, the laboratory is

developing less time-consuming

artificial color tests using thin

layer chromatography .

In addition, the laboratory monitors various commercial wines for

sodium content and pesticide residues and checks manufacturing

Processes of denatured alcohol

users for discharges of waste materials . The staff authorized toluene as an alternate denaturant

for two denatured alcohol formulas after reports that Benzene is

a suspected carcinogenic agent

The laboratory also devel '

0

ped a

method of Differential Solvent Extract to differentiate between

small cigars and cigarettes.

CERTIFICATES OF LABEL APPROVAL ISSUE D

no 1. - -

Forensic Staff Work

In fiscal 1972, the Forensic Laboratory workload almost doubled .

The staff examined approximately

23,000 physical evidence samples

connected with 3,230 cases involving illicit firearms and destructive devices, illicit liquor

conspiracies, income tax frauds,

and other crimes. The photo laboratory processed about 80 requests per month for photographs

of questioned documents. The

staff also performed numerous

special photo assignments for

use in court cases .

.1.

nz 1.

- - - 11. 111. 11.

The laboratory staff processed

more than 735 bomb cases and

approximately 344 document

cases. The Service used success .

fully in court cases much of the

evidence examined in connection

with firearms and bomb offenses.

Substantial increases occurred in

firearms examinations involving

tool marks, ballistics, gunshot

residue, gunshot patterns and

bullet identification . The number

of physical evidence samples

submitted in connection with illicit distillery operations remained nearly the same as last

fiscal year.

Formulas and Labels examimed

type 1971 1972

Formulas for nonbeverage food, flavors and medicinal products 2.010 2,100

Formulas for specially denatured articles 3,897 4,151

Label requests for alcoholic t0iietri~, medicines, etc . 8,286 6.873

Rectified products 1,197 11089

Wine 215 293

I Increase in wine formulas reflects apparent consumer acceptance of the cu, .

rently Popular sweet-flavored wines.

22 23

Audit Contribution to

Strike Force Activities

The Audit Division contributes

leads and expertise in reconstructing complicated financial

transactions which help other

Federal agencies obtain indictments for violations outside of

the Service's jurisdiction. It has

asserted substantial tax liabilities

within the Service's jurisdiction .

The table at the right reflects the

effort expended and results obtained .

The War Against

Narcotics Trafficker s

In June 1971, the President called

for an increased effort to combat

the growing problem of drug

abuse. The Service set up a special program to conduct tax investigations on key figures engaged in narcotics traffic. The

objectives are to prosecute those

who have committed' criminal

tax violations and to reduce

drasticaly the profits from the illicit drug traffic by assessing

taxes and penalties on unreported profits . The Service has

assigned 189 revenue agents, 268

special agents, and 110 clerical

support personnel to the project .

A Target Selection Committee

composed of Treasury's Director

of Law Enforcement, with members from the Bureau of Customs,

the Bureau of Narcotics and Dangerous Drugs, and the Audit and

Intelligence Divisions of the Internal Revenue Service establishes criteria and Identifies subjects for investigation. The committee identified 697 targets in 49

districts for joint investigation

and 94 for independent audit.

Agents completed 155 cases and

recommended prosecutions of 56

persons . Of those, 7 have been

indicted and convicted . Additional tax and penalties of 43

million have been assessed or

recommended for assessment.

In addition, the Service issued

spontaneous assessments (terminations of taxable years and

jeopardy assessments) amounting to $49.9 million . Agents

seized $7.2 million in cash and

26

Audit Strike Force Accomplishments

Period

Ranumsho

Agents

Assigned

1967-1970 176

1971 351

1972 549

$1 .3 million in other property

after the spontaneous assessments . The largest seizure occurred in New York on April 29,

1972, when investigators discovered $1,078,100, a part of which

was concealed in a basement

wall and the remainder found

buried in the backyard of a convicted heroin distributor .

R-infinamde'd

Closed Additiona l

Exami nations Tax &

penalties

Pending

Exarninations

itnifficm.)

1 .302 $ 22.2 2.368

2,731 $105.6 3,708

5,894 $254.8 2.866

The neat stacks of money on the defut

amount 10 $1,078,100.00. The money had

been concealed at the home and In the

g:m6n of a convicted heroin distributor S .

rvice agents discovered and W~.d the

money to, application as a partial payment

ag inst his Federal tax b Ilebtlify . Pictured

&low' (I. to r .) am Martin Pollnet, Diracto,

of Law Enforcement, Treasury Department ;

Daniel Casey, Narcotics and Dangerous

Drugs Director; and Elliott Gray, Director di

Internal Revenue, Manhattan District .

The money so neatly stacked on the desk in

the picture above /a shown h... in It. hid.

ing place as discovered by Service agents .

Organized Crime and

Strike Forces

There is no glamour in the underworld . Contrary to the image

portrayed on movie and television screens and in publications

of fiction, organized crime is a

vicious, dirty business . It is as

real as this year's tax bill, and it

is characterized by violence . In

the past year, for example, gangland violence erupted to take the

lives of seven men in a ten day

period.

The Government combats organized crime through the Strike

Force concept which melds the

investigative resources of various Federal agencies . Although

all Federal law enforcement

agencies participate, the Internal

Revenue Service supplies more

than half of the agent manpower

to the 18 Strike Forces strategically located throughout the

country. Agents from the Audit,

Intelligence, and Alcohol, Tobacco, and Firearms Divisions

participated in the program . This

year, Service activity in the Strike

Force .Program established new

records in criminal and civil enforcement .

The protection of witnesses in

the Service's probe of the underworld is a difficult task. In cooperation with other law enforcement agencies, the Service provides a round-the-clock protection when needed, and, where

necessary, assists in the relocation of witnesses and their families .

The success of any program is

measured by its results . During

fiscal year 1972, invesitgative efforts by the Service helped to

produce 355 indictments . Other

accomplishments follow,

A grand jury returned an indictment against a District Attorney

on charges of filing false income

tax returns and bribery, illegal

gambling, and obstruction of local law enforcement. The same

charges were filed against nine

others, including two high ranking police officers and major operators of illegal gaming devices .

Strike Force investigations resulted in indictments against the

world's largest manufacturer of

slot machines and pinball machines, the company's president,

and several others, including two

brothers of the area's crime boss.

Investigative efforts produced an

indictment of a United States

Congressman . The Congressman

is charged with Income tax evasion, perjury before the grand

jury, and consipracy to impede

the administration of the Internal

Revenue laws. The conspiracy

charge alleges that the Congressman assisted the former

Mayor of Jersey City and the former Jersey City Council President in concealing a large

amount of cash to hide their true

income tax liabilities .

Hugh Addonizio, a former Mayor

of Newark, Anthony La Morte,

former Public Works Director,

and Joseph Biancone, syndicate

enforcer, lost final a ;5peals to the

U .S. Supreme Court and began

serving ten year sentences . The

U . S . Attorney remarked : "The incarceration of former Mayor

Hugh J . Addonizio gives confidence to all glecent law abiding

citizens that those who abuse

and corrupt their high political

office for their self-enrichment

can be brought to account within

our judicial system ."

Anthony Russo pleaded guilty to

charges of failure to file corporate tax returns for two firms in

which he was the principal officer. He received 18 months imprisonment and a $50,000 fine .

Investigation of a conspi.

racy in

Kansas City resulted in the indictment and arrest of an organized crime figure involved in narcotics traffic, prostitution, income tax evasion and hidden

ownership in taverns.

Donald Dawson, described as

one of tHe biggest interstate

bookmakers In the Midwest, received a prison term of one year.

The Service is assisting oth&

agencies in bringing law violators

to justice . This is especially visible within the operations of various Strike Forces . In Detroit, the

Service furnished information to

the Federal Bureau of investigation on loan sharking operations,

and coordinated with other elements in identifying night clubs

owned by organized crime subjects but titled in the names of

nominees .

The Service continues to receive

outstanding cooperation from the

Royal Canadian Mounted Police .

They were especially helpful In

the recent location, identificaiton,

and apprehension of a fugitive

who had entered Canada under

an assumed name. The fugitive

has been returned to the United

States to face trial on a $700,000

tax evasion charge .

Strike Force investigators also

combat corruption In governmental agencies . This year they

uncovered a conspiracy to deprive the poor people of Calumet,

Indiana of benefits from the food

voucher program . Investigative

efforts resulted in the conviction

of Davage Minor, a former investigator in the office of the Calu.

met Township Trustee. He had

funnelled food vouchers intended

for the poor through local grocery stores, and split proceeds

between public officials and the

store owners . Two other employees of the Trustee's office entered guilty pleas to charges of

tax evasion and received prison

terms .

27
In a recent investigation, using

the team approach, agents investigated a notorious organization

purportedly engaging in multikilo narcotics trafficking, gamb(ing, and prostitution . They were

assisted by twelve agents from

the offices of the City District Attorney, City Sheriff, City Police

Department, State Bureau of Narcotics, U . S . Bureau of Narcotics

and Dangerous Drugs, and the

Bureau of Customs . The combined efforts produced probable

cause foraearch warrants, 20 arrests, and numerous leads to tax

evasion cases .

New procedures and techniques

reduce the time required for

completing financial investigations . The use of computers will

facilitate scrutiny of the finances

of each of the drug traffickers .

By computerizing this information each year, the Service will

be able quickly to examine each

trafficker targeted under the program.

Foreign Financial Transactions

Newly issued Treasury Regulations under Public Law 91-508

require financial institutions to

retain records that will facilitate

reconstruction of international

and ' domestic banking transactions. The same regulations also

require reporting international

transportation of currency or

monetary instruments in amounts

exceeding $5,000.

The Service participated in drawing up treaties which would permit agents to obtain tax information from countries whose bank

or economic secrecy laws have

been used in evasion schemes .

The proposed mutual assistance

treaty with Switzerland is one instance in which the Service made

significant contributions . The

Service also developed information on the need for treaties with

other countries whose financial

facilities are used to impede enforcement efforts.

The Service concluded a significant criminal tax case involving

use of foreign facilities when

Irving Braverman and Sidney

Rosenstein received sentences

in the Southern District of New

York, and paid fines of $100,000

each . Braverman and Rosenstein

are manufacturers' representatives who specialized in sales to

military post exchanges. The govemment contended that Braverman and Rosenstein secretly

formed a Liechtenstein company

and diverted untaxed commissions to that company's account

in a Swiss bank

.

Criminal

charges included the evasion of

income taxes totalling more than

$1,600,000 .

New Developments in the

Firearms Progra m

The conversion of the National

Firearms Registration and Transfer Record to an automated system of filing and retrieval is near

completion . The Service has

placed approximately 200,000

records of registrations an d

Results of criminal action in firearm, cases

Action

Indictments and inlormation

Dispostals, tota l

Plea guilty or nolo:contendem

Convicted after trial

Acquitted

Nol-prossed ordismissed

transfers of firearms and dostructive devices in the Miracode

Retrieval System . The system

provides instant response to field

inquiries and eliminates misfiling,

while saving space, time, and

manpower.

Firearms experts developed bullet trap and sound measurement

instrumentation to test silencers.

The equipment has been used

successfully at several court

trials .

Firearms Program Intensified

In 1972, the Service expended

1,146 Investigator man-years on

firearms work, up 299 man-years

from 1971 . Firearms investigations produced 3,341 criminal

cases, arrests of 2,507 violators

and the seizure of 7,142 firearms.

These figures compared with

21785 criminal cases, 2,223 violators arrested and 7,995 firearms seized in 1971 .

Service investigations of the activities of 62,423 licensed gun

dealers increased in 1972 . These

investigations disclosed 3,143

purchasers of firearms who had

criminal records, used fictitious

names, or furnished other false

information in purchasing firearms . Additional accomplishments under the Firearms program are set forth in the table

below .

Number of defendants

1971 1972

1,9D6 2,645

1,691 2,420

784 1,110

372 448

114 ISO

421 61115

Firearms Licenses and Permits

In 1972, Service investigators

made 31,259 license application

investigations and 31,164 compliance investigations, compared to

20,088 applications investigations

and 23,684 compliance investigations in 1971 . Under the import

provisions of the Gun Control

Act, the Service received 22,320

permits to import 1,199,614 guns

compared to 26,658 permits covering 964,122 firearms processed

in 1971 .

Federal Gun Control

at Wor k

The effectiveness of the Federal

firearms laws in bringing criminals to justice is best illustrated

by actual cases . A few examples

follow :

In Connecticut, two employees of

a firearms manufacturer stole automatic rifles from the plant by

breaking down, concealing and

removing the parts and reassembling the rifles . The defendants

sold the stolen rifles to eight persons. One of the rifles is believed

to have been used in a bank robbery in New Britain, Connecticut .

The defendants have been

charged with unlawful receipt,

possession and transfer of unregistered firearms and with engaging as a firearms dealer without a license . Their associates

have been indicted on six counts

in companion cases by reason of

the sale of six of the stolen firearms to undercover investigators

in New York .

A gun store in New Hampshire

was robbed of 44 weapons, including shotguns, rifles and

handguns . The stolen firearms

were subsequently transported to

Massachusetts where they were

sold to a "fence ." Service investigators gathered sufficient information to obtain arrest warrants

for 21 defendants .

After an intense Service investigation, three defendants were

convicted in Miami, Florida, for

manufacture and possession of

firearm assassination kits . They

received prison terms of 20

years .

An undercover investigation by

the Service resulted in the purchase of an illegal machine gun

from a member of a radical

group. A subsequent seizure involved explosives, hundreds of

rounds of ammunition, and eight

additional machine guns.

Service investigators arrested a

defendant and raided an illegal

machine gun factory . Machine

guns, silencers, and miscellaneous parts were seized .

Seizures and arrests for firearms violation s

Item

Seizures :

Firea rns

Des!ructive devices

Vehicles

Property (appraised value)

Arrests

Service investigators seized 7,841

firearms and destructive devices

in 1972. Weapons such as those

pictured below, seized in New

York State, pose a potential

threat to the well-being of all citizens. The weapons seized included sawed-off rifles and shotguns,

automatic weapons, and destructive devices .

On March 13, 1972, Service Investigators in Honolulu, Hawaii,

arrested four men after the undercover purchase of two sawedoft shotguns and one sawed-off

rifle . It was later they learned

that one of the subjects, armed

with a handgun at the time of

arrest, had intentions of killing

the Service and Customs agents

assisting in the case. The murder of the agents, was to take

place immediately after the shotgun sale . It was prevented by the

quick action of backup agents

on the scene .

1271 1972

number 61910 7,142

do 1.085 699

do 344 237

dollars S".613 669.703

number 2,223 2,507

W-p .r. ol-d by AT8F 1-stigO. . 1~

No. York -m

I

28 29
Bombs and Explosives

The assignment of jurisdictional

responsibility for Title XI of the

Organized Crime Control Act of

1970 has led to the development

of new procedures and techniques for perfecting cases involving destructive devices, explosives, incendiaries, and other

materials.

Some significant cases investigated by the Service involving

use of explosives follow :

In January 1972, Service investigators assisted by the Woburn,

Massauchusetts Police Department arrested 15 persons on

charges of conspiracy to make

incendiary bombs, making and

possessing incendiary bombs,

and destruction of a motor vehicle . The arrests climaxed a 15-

month investigation of firebombings of a school in North Woburn,

Massachusetts .

Investigation of a bomb incident

in Chattanooga, Tennessee, led

to the arrest and conviction of a

long-time whiskey violator. Analysis of parts of the bomb disclosed the latent prints of the

individual arrested .

s...ic. ...N. p-H-1 tral.-

ft M b..b a .... ... .hax .

30

In February 1972, Service investigators working undercover foiled

a plot to blow up railroad junctions and electric transmission

lines in the Lehigh Valley of

Pennsylvania . They seized eleven

bombs, numerous firearms, and a

quantity of dynamite .

The babblings of an attempted

suicide victim recovering from an

overdose of barbituates caused

Alcohol, Tobacco and Firearms

investigators to spend a day and

a half in a boobytrapped farm

house . Two investigators acting

on the victim's information proceeded to his house located

some 45 miles from town . They

were stopped at an improvised

roadblock by two deputized farmers armed with shotguns who

stated that they had heard that

the suspect was crazy and was

in the vicinity. After identifying

themselves, the investigators proceeded . Several miles later they

were again stopped by the same

deputies and asked to identify

themselves again . They said that

the suspect was very clever and

might have disguised himself as

a government man .

Once again allowed to proceed,

the investigators arrived at the

farm house to find it equipped

with a high fence, a watch tower

and a two-wheel cannon made

from well casing and fired remotely by an electrical device. They

found the fence gate equipped

with a buzzer and microphone .

As one investigator moved to use

the buzzer, the other grabbed his

arm and pointed to a wire leading to a mound of dirt at their

feet . Both investigators immediately look cover in a ditch only

to discover another wire and

mound of dirt beneath them .

Neither bomb detonated .

Noting suspicious diggings near

the house and suspecting the

yard might be mined, the investigators borrowed horses from a

nearby pasture and stampeded

them through the yard . No mines

or bombs detonated .

Upon approaching the house, the

investigators saw four sticks of

capped dynamite taped beneath

the porch and a wire leading into

the house . Closer examination

showed all windows and doors

rigged with electrical switches .

Since the regular entries to the

house could not be used, the investigators entered by means of

a hole sawed in the living room

wall .

In a bedroom of the unoccupied

house the investigators found a

bomb made of 238 sticks of dynamite wired to the house circuit .

Various other rooms in the house

contained 19 bombs .

They then began the long process of decapping the dynamite

and defusing the bombs. By trAcIng the lead wires, the investigators discovered that the bombs

were connected to a telephone

type control panel with key and

toggle switches designed to remotely fire the charges collectively or one at a time . They rendered all the devices safe and

removed them .

The suspect and owner of the

house was an unemployed electrician . He was deeply in debt

and planned to blow himself up

along with any officers who might

try to arrest him . He received a

sentence of 10 years in prison for

illegal possession of 23 destructive devices .

Training in Bomb

Scene Searche

Alcohol, Tobacco and Firearms s

investigators received intensive

training in bomb scene searches

necessary to carry out their responsibility of enforcing Title XI

of the Organized Crime Control

Act of 1970 (Regulation of Explosives) . The intent of the act is

to curb the criminal misuse of

explosive materials and regulate

the legitimate explosives industry .

Assistance to State and

Local Law Officials

The Alcohol, Tobacco and Firearms Division provided extensive

investigator training to State and

local law enforcement agencies

in a program sponsored by the

Law Enforcement Assistance Administration of the Department of

Justice .

Results Of criminal action in explosives cases

Action

Number of cases

Numberof defendants

Explosives seiMd ObS.)

The instruction spans investigatory skills and techniques, law

(rules of evidence and criminal

procedure), and such functional

training as bomb scene searches,

use and handling of expolsives,

and firearms investigations .

During fiscal year 1972, the Service conducted six, two-week and

two, one-week investigator training schools for State and local

officers in Maine, Vermont, Georgia, Virginia, Texas, New York,

Iowa and Nebraska .

A series of 15 lesson plans, incorporating texts and various visual aids in the explosives area

assisted State and local law enforcement .

Congressman Dante Fascell commended this training in a speech

to the House of Representatives

(Congressioital Record, March 8,

1971) :

1971 1972

69 266

66 408

1,702 4,325

"Mr. Speaker, one of the unsung

but most effective proponents of

improved cooperation and coordination among Federal, State

and local law enforcement agencies is the Alcohol, Tobacco and

Firearms Division of the Internal

Revenue Service . Charged with

weighty and growing responsibilities, under recent congressional

enactments pertaining to explosives and firearms, among its

many other respons

'

ibilities, the

Alcohol, Tobacco and Firearms

Division has fashioned an overall enforcement program, including comprehensive formal training and cooperation with State

and local agencies, which is or

should be a model for emulation

by other Federal enforcement

agencies."

31

I

I

New Responsibility

The Service played a key role durIng the past year in the nationwide

program to combat inflation . On

August 15, 1971 President Nixon

announced a 90-day freeze on

most prices, wages, and rents .

The President's Executive Order

created the Cost of Living Council as a major policy making

body. Simultaneously, the Office

of Emergency Preparedness

(OEP) took over responsibility to

implement, administer, and enforce the Economic Stabilization

Program.

On August 19, OEP redelegated

responsibility to the Internal Revenue Service to establish local

service and compliance centers .

Staffs at the centers provided Information to the, public, Investigated complaints, and monitored

compliance with the stabilization

program .

Because of the minimum of advance notice of its new responsibility, the Service had little time

to develop planning programs to

handle the volume of inquiries

and investigations that quickly

followed .

Since no precedent body of

knowledge, experience, or procedures existed, an Innovative

program followed. The first week

of operation brought 120,000 inquiries and more than 4,000

complaints of violation . During

the 90-day freeze, which came to

be known as Phase 1, the Service

developed a responsive and flexItile program to meet its responsibilities under the Economic

Stabilization Program.

Background of Phase 11

On October 15th, the President

issued an Executive Order providing the legal foundation for the

postfreeze program, or Phase 11 .

The Order continued the Cost of

Living Council as the major policy body, and created the Pay

Board and Price Commission .

The Pay Board develops standards and criteria for pay adjustments consistent with program

objectives, and the Price Commission develops standards and

criteria for price and rent adjustments.

The role of the Service was to

receive inquiries and complaints,

carry out investigations and perform other related duties, as the

OEP moved out of the Stabilization Program .

Verbal and Written inquiries Phase I

IRS Organization and

Manpower for Stabilization

Activities

On November 14, 1971, Phase 11

emerged as an ongoing operation

and the President assigned the

Service the responsibility for anforcement of the program . The

Service established an Office of

Assistant Commissioner (Stabilization) at the National Office and

counterpart offices at regional

and district offices. With this organization, the Service provides

enforcement services at each of

the 58 district offices and at 302

local service and compliance

centers.

Manpower for the program consists of full time stabilization employees and other employees

transferred from tax administration tasks . They include such as

revenue agents, tax auditors, revenue officers, taxpayer service

representatives, special agents,

and appellate conferees .

From November 15, 1971 to June

30, 1972, the Service answered

2,320,358 oral inquiries and 102,-

324 written inquiries. The National Office responded to 14,083

special executive, policy board,

congressional, and public Inquiries.

The program involves complex

stabilization Issues, increasing

the need for technically proficient

professionals. Revenue agents

performed much of this work .

Verbal and Written inquiries Phase It

The Cost of Living Council formulates broad policy decisions,

while the Pay Board and Price

Commission establish specific

criteria and policy objectives .

Additional delegations of authority from the policy bodies permit

the Service to make a variety of

wage and price determinations,

to issue rulings, and to resolve

price violations.

Compliance Program

The objective of the compliance program is to monitor Inflationary leaders or companies

with a high degree of visibility

in the community, as well as to

respond to consumer complaints .

There are four principal types of

investigations :

(1) major investigations of Industry leaders, initiated by

the Cost of Living Council,

Price Commission, Pay

Board, or the Internal Revenue Service ;

(2) follow-up investigations of

firms who fall to file required reports with the Pay

Board or Price Commission, or whose reports

showed excessive profit

margins ;

(3) investigations of consumer

complaints ;

(4) locally Initiated investiga-

. tions of inflationary leaders.

The Service develops monitoring techniques and guidelines

after making preliminary surveys

of industries . For example, the

Service performed a full-scale

monitoring Investigation of the

retail food industry. Service personnel drafted a model audit plan

for food retailers for use in other

I

34 35
I

major food compliance investigations. Other full-scale monitoring

investigations span the textile

industry, the ferrous metals industry, the lumber and paper industry, wholesale meat packer

industry, meat retailer industry,

and the machinery and equipment manufacturing industry, as

well as investigations of Institutional health providers and professional service firms . From January 1, 1972 to June 30, 1972, the

Service investigated 426 large

firms, and ensured compliance

with rollbacks or refunds orders .

Complaints of Alleled Violations Phase

I

R-list .

nass

36

Complaints of Alleged Violations Phase I

Re,,eipts

-1

:,nvestigations of Large Firms

itiated 4 the Policy Bodies

Exceptions and

Exemptions

When regulations create extreme

hardship or gross inequity, exceptions and exemptions provide

relief . An exception is a waiver

of one aspect of the regulations

for a specific firm or individual.

An exemption is a general waiver

from the regulations for certain

classes or property.

In March, 1972, the Pay Board

delegated authority to the Service to approve or deny exceptions for wage and salary adjustments. This affected employee

units of fewer than 1,000 persons,

and shortened the time for a citizen to receive an answer to his

request for a pay exception . The

Service received over 10,000 requests for pay exceptions with

the delegated authority.

Applimions for Exception/Exemption

Number or

R.aiph

496-192 0 - 73 - 4

I

Price Adjustment Exemptions

In May, 1972, the Price Commission delegated authority for exceptions in all rent and price

cases involving firms with annual

sales or revenues of $50 million

or less . During the post-freeze

Phase, the Service processed

over 4,0DO requests for exceptions to the price regulations .

Frequently, persons requesting

an exception are unaware that

their proposed action is within

the boundaries of the wage-price

guidelines, and allowable without requiring an exception . For

this reason, Service representatives work with the applicant in

Initially determining whether It is

necessary to file a formal exception application .

Exemptions

In April 1972, the Cost of Living

Council delegated authority to

the Service to deny exemption

requests that are the same as, or

substantially the same as exemptions that the Council previously

considered . To date, the number

of exemption requests has been

small, limiting the scope of Service action in this area.

37

I

I
Appeals Program

Regulations provide for appeal at

the local level . Persons may ap,

peal decisions on Interpretations

and requests for exceptions or

exemptions. The Service issues

formal notice in instances of denial and the appellant may ap,

peal further to the Cost of Living

Council, the Pay Board, or the

Price Commission .

As of June 30, 1972, the Service

received 2,557 appeals and resolved the majority at the district

level .

Notices of violations are not subject to appeal, but the alleged

violator may request a hearing.

Following the hearing, the Service withdraws the notice of violation or refers it to an Assistant

United States Attorney for possible prosecution .

Stabilization Programs

The programs described above

break down into two major categories : those that assist and answer questions from the public ;

those that ensure compliance

with stabilization regulations. The

accompanying chart displays the

major Phase 11 programs and

compares the manpower expended on each of the programs

during the past year.

PERCENTAGE OF

14ANPOWER EXPENDED

ON MAJO R

STABILIZATION PROGRAMS

Appeals Prognian

Stabilization Support

Activities

Review of Proposed

Regulations

The Service reviews all regulations proposed by the Cost of

Living Council, the Pay Board,

and the Price Commission to

help Insure that the public understands them. This review helps

the policy bodies recognize when

enforcement of a proposed regulation would require an undue expenditure of manpower, when

proposed regulations are vague

or inconsistent, or when enforcement of a particular provision

would result in severe inequities .

Publications Explaining

Stabilization

The emphasis on voluntary compliance called for a program to

convert complex economic regulations into plain-language . The

Service approached this in two

ways : first, developing comprehensive publications to explain

regulations on a particular subject ; second, developing a series

of publications for selected segments of the economy . The Service sends reproducible copies of

publications to associations or

organizations for distribution to

their members and for reproduction in their periodicals . For example, "Posting Re, .

a ents

for Retailers" went to 180 retai u' m I l

associations for distribution to

a~l member retailers . In this way,

d stribution is widespread and

reaches hundreds of thousands

of interested persons. In many

cases, retailers, employers, and

landlords obtain additional copies for distribution to their customers, employees, or tenants,

clarifying the provisions of the

price, wage, and rent controls .

Thus far, the Service has distributed 12 million copies of publications.

I

Foall-Review, Necessary for

Uniformity

The National Office has primary

responsibility for insuring technicaL accuracy, uniformity and

consistency of all stabiliiation

actions. It accomplishes this by

analyzing closed stabilization

cases relating to interpretations ;

identifying significant technical

or procedural errors ; and taking

corrective measures . The objective is to maintain quality and

uniformity to encourage citizen

support and voluntary compliance .

Stabilization

Accomplishments

The Service works hand-in-hand

with the Justice Department in

developing litigation cases . Stabilization investigators are in frequent contact with Assistant U .S .

Attorneys to assist in documentation of cases . Notices of Violation go to large firms only after

case reviews by the Department

of Justice .

From November 15, 1971, to June

30, 1972, the Service received

105,502 consumer complaints .

Subsequent investigations resulted in the issuance of 1615

Notices of Violation .

In one case, a Federal Grand

Jury indicted the landlord of a

low-rent apartment complex for

stabilization violations . The landlord allegedly raised rents excessively and then forced tenants, under threat of eviction, to

sign statements saying the increase was for maid and answering services. The charge carries

a maximum penalty of five years

in prison and a $10,000 fine .

Another price case involved a

corporate chain of resort hotels

which raised room rates without

notifying the Price Commission .

The Justice Department has

asked the court to impose civil

penalties of $109,500 and to order refunds of approximately

$50,000.

From November 15, 1971 to June

30, 1972, the program involved

11,045 rollbacks of excessive increases in prices, wages, or

rents. A bank in Detroit rolled

back excessive rentals on safety

deposit boxes and refunded

$6,000 to 1,963 customers. A

major Professional football team

rolled back set prices, affecting

the ticket prices paid by the exPected season's attendance of

706,000 tans.

The Service handled more than

3 .7 million stabilization inquiries,

mostly centering on rent issues .

Most compliance programs dealt

with price actions, except for the

appeals program which primarily

involved wage cases . The Service is adjusting to the need for

additional technical personnel

by apportioning more manpower

to compliance programs and by

increasing the number of revenue

agents used in the program .

FISCAL YEAR 1972

(ACTUAL)

Rollbacks of Excess0ye Inciresses, in Prices,,

Wages and Rent s

STABILIZATION

MANPOWER

ALLOCATION

FISCAL YEARS

1972 AND 1973

45%

FISCAL YEAR 1973

(PLANNED)

CannotProlisases

Ell

38 39

II-Oreign Flosts'

Mission Restructure d

The Service operates permanent

posts staffed by Revenue Service

Representatives in ten major

cities around the world . These

posts in Bonn, London, Manila,

Mexico City, Ottawa, Paris, Rome,

Saigon, Sao Paulo and Tokyo

provide important contact points

with U .S . citizens and business

entities overseas.

Revenue Service Representatives

devote time to a variety of activities, including servicing requests

for information from foreign tax

officials, acting as liason between

U .S. and foreign tax authorities in

resolving cases of double taxation or other inequities arising

under tax treaties, and providing

information and guidance to U .S .

citizens with tax problems .

Overseas AuditsA New Development

Until 1972, the Service handled

most audits of returns filed by

taxpayers overseas through correspondence . In some cases

Service personnel at foreign

posts carried out intermittent

audits, assisted by agents from

Washington on short assignments .

Recent surveys pointed to a

need to expand overseas audit

activity to counter a growing

noncompliance problem .

Under a new program, the Service details teams of revenue

agents and tax auditors to the

Service's overseas posts. The

agents work throughout the area

covered by each post, while auditors examine returns and do

related work at the post itself .

Each agent-auditor team usually

is stationed abroad from four to

six months . After this tour of

duty, a replacement team takes

over, assuring year-round continuity.

42

Teams perform compliance

checks, make collateral examinetions, provide taxpayer assistance, hold conferences, and handle delinquent returns and collections cases . They work with

permanent Service personnel stationed at foreign posts who are

familiar with the area and its

problems .

Worldwide Taxpayer

Assistance Program s

For the past 19 years the Service

has provided a worldwide tax assistance program . In 1972, the

overseas taxpayer assistance

program encompassed visits to

102 cities in 56 countries by specially trained Service personnel

who helped more than 31,000

persons prepare their tax returns .

The program offered tax saminars in 78 foreign cities. The

Service tailors seminars to inform and assist all U. S . taxpayers residing in the foreign area,

and arranges them to allow for

a presentation by the tax assistor

on tax rules, a question and answer session, and a return preparation period .

Approximately 1,000 servicemen

received several days of income

tax instruction at bases abroad .

After completing training, they

provided assistance to many

other members of the military

communltv.

Barbara Stratton (fight), a member of the eversees taxpayer assistance team helps a U .S .

citizen In Rome. Assistance is given at vefious

locations in more than 100 foreign cities .

Developing Cooperative

Contacts Abroad

In 1972, U .S . and foreign tax authorities met to discuss ways of

improving exchanges of information, and expediting relief to taxpayers involved in double taxation .

From these exchanges

,

more effective procedures for international cooperation will evolve,

aiding equity to taxpayers and

deterring tax avoidance practices . ,

A continuing program of mutual

assistance is conducted with tax

authorities of the possessions of

the United States and with the

Commonwealth of Puerto Rico .

It includes exchanges of information, joint audits, and assistance in collection of tax. A tax

administration accord recently

concluded with Puerto Rico formalized and expanded an existing policy of cooperation . A previous agreement reached with

tax authorities of Guam resolved

potental conflicts in tax determinations, particularly those involving allocation of income between sources in Guam and the

United States .

Extension of Federal

Unemployment Tax to

Americans Oversea s

Prior to 1972, the Federal Unemployment Tax Act did not apply

to citizens of the United States

and Puerto Rico who worked in

foreign countries . Recent

changes in the law apply the tax

to U .S. citizens and citizens of

Puerto Rico who work outside

the United States or Puerto Rico,

if they qualify as employees of

American employers . The tax

does not apply to money earned

in Canada, since these earnings

are covered by a reciprocal unemployment compensation agreement, nor to services performed

in the Virgin Islands. Thus, with

the latter exce Ptions, Federal unemployment tax and related unemployment benefits (or their

counterparts under the agreement with Canada) now extend to

the large group of citizens working for American employers overseas.

Withholding Tax-A Key

Collection Tool

A withholding tax is imposed on

investment income from sources

within the United States before it

is remitted to nonresident alien

payees . Tax is withheld at a rate

of 30 percent or, in most cases

at reduced rates as specified

treaties .

Tax and information returns filed

by withholding agents serve several purposes . They help secure

compliance with U.S . tax laws

and provide information for delinquency checks ; they provide a

source of data for foreign tax

authorities ; and they are useful

in making fiscal projections and

planning Service programs .

The chart below summarizes income received by nonresident

aliens and foreign corporations,

and U .S. tax withheld . This includes additional tax withheld

and remitted by foreign banks

and other nominees on behalf of

clients who are not residents of a

treaty country, and thus not entitled to reduced treaty rates .

Tax withheld from payments to nonresident alien persons of treaty and nontreatycou ..

tri-calendar year 1970

Thousands dollars

Country Income

Treaty countries :

A .1ralin 3,457

Austria 1,934

Belgium 27,196

Former Belgian pi s

Territories 586

Canada 238, 216

Denmark 2,564

Finland 607

France 70 .147

Federal Republic of

Germany 48,479

Greece 1,451

Ireland 4259

tely 15 :387

Japan 31,864

Luxembourg 16.749

Netherlands 189,604

Netherlands Antilles 91,250

New Zealand 593

Norway 2, 168

Pakistan 188

Sweden 10,055

Switzerland 310,522

Trinidad and Tobago 73

Republic of South

Africa 1.462

United Kingdom 297,241

U .K . overseas territ . 4,692

Nontrenty countries 88.241

Total 1 .458.985

Toxfmm Number of

To. with. foreign informa.

held by go--.

time cloc ..

domestic set. ments

withheld. or with. filed b y

ing holding Toteltax withhold .

agents agents withheld ing agents

548 548 5,157

230 230 5.02 7

3,544 438 3,982 12,565

9

2 92 759

27 .469 3,283 30,752 254 :643

179 179 2 083

45 45 340

7 .364 118 7,482 20,607

4 .297 4,297 95,550

302 302 2.910

468 468 4,030

1,718 1,718 14825

3,231 3.231 3:683

3.010 628 3,638 2. 766

13,504 273 13,777 , 531

4.499 5 4,504 l :85 4

82 82 1,086

266 266 4,905

22 22 164

693 693 5,011

39 .733 25,001

16 16

64 .734 46,289

244

384 384 1,490

34.877 474 35,351 49,310

944 944 3,935

22 .376 22,376 108.129

169,893 30.220 200,113 655 .1393

43
The following graph shows a

sharp rise in the amount of taxes

withheld over the period 1961

through 1970, reflecting the sizeable growth of foreign investment

in the U .S . economy .

Increase in Tax Withheld

from Payments to

Nor-Resident Alien Persons

Ca= and N-treat Of ; co.otriesYears 1961.1 70

nxx n.

Negotiating New Tax

Conventions-A

Continuing Progra m

The United States and Norway

signed a new income tax convention at Oslo on December 3,1971 .

The existing convention will remain in effect until instruments

of ratification of the new convention are exchanged . The United

States also concluded an agreement with the Republic of China

for the purpose of granting relief

from double taxation on earnings

derived from the operation of

ship~s and aircraft by corporations or citizens of the two countries . The agreement became effective upon exchange of notes

at Taipei on February 26, 1972 .

These developments reflect a

continuing program to extend the

U.S . tax treaty network to additional countries and to modernize existing treaties . The 6ew

Norwegian convention, for example, takes into account

changes in U .S . and Norwegian

tax laws and in the tax treaty

area which have occurred since

adoption of the prior convention .

To the extent that technical and

policy factors permit, the new

convention follows the model tax

convention prepared by the 23-

nation Organization for Economic

Cooperation and Development.

Technical Assistance In

Tax Administration

The Tax Administraiton Advisory

Staff (TAAS), formerly known as

the Foreign Tax Assistance Staff,

assists foreign governments

wishing to improve their tax administration, and coordinates exchange of personnel between the

Internal Revenue Service and

state and local governments and

universities. The latter is a newly

acquired responsibility.

This new activity is conducted

under the Irltergovern mental Personnel Act of 1970, and involves

temporary exchanges or assignments of officials for projects related to tax administration . Major

objectives are to strengthen state

and local tax agencies and to improve the effectiveness of Federal-state/ local tax operations.

Under the Intergovemmerial Personnel Act of

1970, the S-I.. s.1gns offi,lat. and achnlclans to work with state and local tax agen.

.1. to strengthen tax d .inntrali- and Increase the eflecthnness of Federal-stale/local

to, operations. NO- b- (I. to ') .1.

TAAS provides technical assistance in tax administration to &~-

veloping countries that request it.

The latter program involves onsite assistance as well as training for foreign tax officials within

and outside the United States

and is financed by and administered in collaboration with the

Agency for International Development. The program is coordinated with activities of the InterAmerican Center for Tax Administrators (CIAT), the Organization

of American States, the United

Nations, other multi-country organizations and various founda .-

tions.

This year, Commissioner Walters

led the U . S. delegation to the

6th General Assembly held at

Asuncion, Paraguay .

Edward A . Dom, a S-ice official on assigh .

menl to the State of Virginia; Linwood Holton,

Goverror of Virginia ; and W. H. Font, Virginia

Tax c-is.l.n.,

44 45
i

Active Country Programs

This is the tenth year In which

the Service has provided technical assistance to developing

countries. Long-term advisory

teams served in Bolivia, Brazil,

Colombia, Costa Rica, Dominican

Republic, El Salavador, Guatemala, Guyana, Honduras, Jamaica, Nicaragua, Paraguay, Trinidad and Tobago, Uruguay and

Viet Nam . The teams are staffed

by IRS technicians who generally

serve two years of duty . They are

aided by specialists on shortterm assignments drawn from the

Service and occasionally from

state and local governments .

Service personnel conducted surveys of the tax administration

systems of Barbados and Zambia

to identify major weaknesses,

propose solutions, and outline an

approach for strengthening their

systems.

The request from the Government

of Zambia reflects a rising interest within Africa for the kind of

technical assistance the Service

has been extending throughout

the world . Service representatives arranged meetings with_tax

officials of the East Africa Community, Liberia, the Economic

Commission for Africa and others. During the year, Liberia began implementing recommendations made during a 1970 survey .

Host countries continued to Make

gains in audit, collections, processing of tax returns and remittances, taxpayer education, training, organization, and management . This progress is reflected

in increased voluntary compliance and rising revenue receipts .

Each yea, the Service is host to many foreign

hidt- Officials . pictured b- (1. 1. 1.) .1. John-

.nu M . Wait.,., C .. he .1 Internal RR je ; J. C. Duignan, Chairman Of the Irish

.'enue Commissioners; S . P. Bedford, Col~

lector General of the Irish lhl.nd R.,enuu;

and Raymond F. Harless, Deputy Commissho-, of Internal R-nForeign Visitors

During the year, 452 foreign tax

officials came to study and observe tax administration in a series of courses offered under,the

International Tax Administration

Training Series (INTAX), and to

participate in programs specialty

designed to fit their needs . The

courses covered the major functions of tax administration, and

the observation sites included

state and local agencies as well

as Service installations . Visitors

this year came from 59 countries

and ranged from subcabinet officials to technicians .

3052 Officials trom

I1 01 Countries Were Trained in

inrh; United States

eat Ten Years

1.

. .' - - -. In

Inter-American Center of

Tax Administrators

(CIAT)

QAT is an organization of tax

administrators from 23 countries

in North and South America . It

continues to attract world-wide

attention as an organization devoted to self-help in tax administration . CIAT's technical seminars on audit, automatic data

processing, and land tax administration draw Participants from

all parts of the world . Its monthly

newsletter and technical materials generated by seminars and

general assemblies receive

world-wide distribution. CIAT

also arranges for the exchange of

technical missions among member countries . It is a model for

regional organizations under consideration in Asia, the Middle

East, and Africa.

46 47

(under the- vi iii su . -,iti uounsei

pervislon of the

Treasury Department) performs

the legal work of the Internal

Revenue Service. It renders opinions to Service officials on substantive legal questions and provides technical assistance to the

Treasury Department's legislative

program .

The Chief Counsel represents

the Commissioner in trying and

in helping to settle cases docketed in the Tax Court. This chapter covers general activities in

the legal area. Important court

actions are included in the ap,

pendix beginning on page 94 .

i ax Court

Litigation Activity

Tax Court cases on hand as of

June 30, 1972 amounted to 12,-

625, as compared to 12,192 a

year earlier . New cases totalled

8,949 for the year and the Court

disposed of 8,507 . Dispositions

included 880 decided by the Tax

Court on the merits, 954 dismissed, and 6,673 closed by stipulated agreement of the parties .

The Supreme Court decided one

case, which had originated in the

Tax Court, in favor of the Government . The Tax Court entered

523 opinions involving 824 cases .

It decided 288 cases for the Government, 84 for the taxpayer, and

151 partially for the Government

and partially for the taxpayer. In

addition, the Tax Court entered

191 Summary Opinions involving

200 Small Tax Cases . In this area

the Tax Court decided 111 for

the Government, 29 for the taxpayer, and 51 partially for th e

Results In Tax Court cases

Government and partially for the

taxpayer. The Courts of Appeals

rendered 177 opinions involving

308 Tax Court cases ; 121 favored

the Government, 36 favored the

taxpayer, and 20 partially favored

the 'Government and partially favored the taxpayer.

in the trial or settlement of cases,

the Tax Court awarded the Goveminent $133 million in taxes

and penalties out of $401 million

placed in issue, and held for the

Government $9 million out of $12

million in overpayments claimed

by taxpayers . At the end of the

year, $1 .6 billion remained in inventory to be contested in the

Tax Court. (The next three tables

show comparable statistics for

the last 5 fiscal years .)

The fourth table shows the record

in trial courts (Court of Claims,

U .S . District Courts and U .S . Tax

Court) having jurisdiction of Federal tax cases.

Deficiencies

and

penalties

Fiscal asserted

Yea, Number (thousands)

1968 5,944 $313.875

1969 5,831 393,699

19 70 6,564 400.092

19 7 1 7: 560 391,605

1972 8507 400,63 1

Cases disposed of by settlement

Total

Deficiencies

P...and

Ities

Fiscal asserted

yea, Number (thousands)

1968 5,058 $281,785

1969 4,776 329,938

1 970 5343 352 .328

1 971 6: 19 7 316,997

1 972 6,673 350,129

Amounts

recovered Recovery

(thousands) Percentage

$ 98,825 31 .48

145,589 36.98

130 .724 32.67

143 .913 36.75

132,984 33.19

Total

Amounts Overall

recovered Recovery

(thousand.) percent~g,

$ 82.215 29.18

118.974 36.06

105,447 29.93

100,788 31.79

106.301 30.36

Cases disposed of by tria I I

Total

Total Deficiencies

number and Total

ofcases

Penalties A

m

. . .is

Fiscal disposed ex-runi recovere d

year of (thousands) (thousands)

1968 611 $29.131 $13.859

1969 783 59,798 22,888

1 970 763 44,926 22,654

1971 806 52,998 21,779

1 972 880 41,132 17.37 1

1 Figures forsettled and tried casesdo notadd to overall totals, which include a small

number of cases dismissed .

Trial court case recor d

Actio n

Decided in Favor of Government 16 16 207 218 407 494

Decided in Favor of Taxpayer 6 51 147 116 100 156

Decided Partially for the taxpaye r

and partially for the Government 4 3 70 56 280 374

1 56 opinions rendered involving 70 cases .

2,323 opinions rendered involving 390 cases .

714 opinions rendered nvolving 1,024 cases .

CourtofClaims DistrictCourts TaxCourt

1971 19721 1971 i972- 1971 1972 1

Overall

R ... ..ry

percentage

47 .57

38 .28

50 .43

41 .09

42.23

Tax In litigatio n

(in thousands of dollars )

Status

Tax Court litigatio Refundn

Taxes and Over- refund

Total P .. his. payments suits

Pending July $143,623 $523 *, 5

Received 722,549 567 .008 15.330 140:21 1 Disposed of 547,539 400.631 12.491

1

34

,

4

17

Pending June 30 2.293 .801 1,617,830 146,462 529,509 Amount saved 227,986 132,984 9,058 85 .944

Results In refund suits (settlements and trials combined)

(Amounts are in thousands of dollars )

Fiscal Year

Amo:nts

Numbe of Amount in

.,

d- Percentage

cases dispute not refunded not refunded

disposed of (Thousand (Thousand

dollars) dollars)

All refund suit s

1968 1,296 $ 94,607 $ 39,856

1969 1

42 .13

.563 120,059 72,670 6053

1970 1,160 84,356 50,262 59:58

1971 9 1 06223

48

19 1 323 45 .49

: : 72 1

9

442 34417 8S 44 63.9 3

District Courts

19 6

1 969

1 970

1 971

1 97 2

Court of Claim .

19 6

1 969

1 970

1 97 '

1972

1

: 11 8 50,703 23,562 46.47

1394 1 .053 97,500 56,992 58.45

49246 26.401 53 .6 1

938 63:8 16 39,841 62 .43

1,292 85,629 51,916 60.6 2

178 43,904 16.294 37 .11

1 69 22.559 15.678 69.50

107 35 110 23 153 .861 67.96

42:407 8,482 20.00

150 48,788 34,028 69 .74

Civil Litigation

Refund Litigation Activities

This year, the Refund Litigation

Division closed 1,442 cases leaving a total of 3,167 cases pending

at the end of the year. In the preceding year it had closed 1,091

cases.

The Supreme Court rendered

three decisions in tax refund

suits, sustaining the Governmerit's position in two of the

cases. In the preceding year the

Supreme Court rendered one decision in a refund suit sustaining

the Government's position .

Of the 136 opinions rendered by

the Courts of Appeal (involving

155 cases), 89 favored the Government, 37 favored the taxpayer,

and 10 decisions partially favored

the Government .

The amount involved in pending refund litigation cases increased slightly to $529 .5 million,

from $523.7 million at the start of

the year. This increase resulted

from the receipt of new cases

totalling $140.2 million and the

disposal of cases totalling $134 .4

million . The $140 .2 million in new

cases compares to $134.1 million

in the preceding year. The 1,442

refund suits disposed of during

the year resulted in refunds of

$48,474,000, consisting of $1,444,

000 refunded pursuant to Court

of Claims judgments, $7,044,000

refunded pursuant to district

court judgments, and $39,985,000

refunded as a result of settlements . The total refund of $48,

474,000 represents a recovery by

the taxpayer of about 36.06 percent of the amount of $134,417,-

000 involved in completed refund

suits . In these refund suits, the

Government successfully defended its position with respect

to $85,944,000 of the amounts

claimed for refund . (Comparable

statistics for the 5 fiscal years

appear in the table at left .)

50 51
I

Stabilization Legal

Services

The Office of the Chief Counsel

to the IRS established a Stabilization Division on November 14,

1971, and appointed an Assistant

Regional Counsel (Stabilization)

In each of the seven Regional

Offices. The Division provides interpretative advice and guidance

to the Assistant Commissioner

(Stabilization), field offices, and

the public . It issues rulings and

reviews regulations issued by the

Cost of Living Council, the Price

Commission, and the Pay Board .

The Assistant Regional Counsels,

(Stabilization) provide interpretative guidance on rulings issued

by the Stabilization Division and

on regulations issued by the policy bodies .

The Service published 292 rulings during the fiscal year. These

included : 60 Cost of Living Council Rulings ; 192 Price Commission Rulings ; and 40 Pay Board

Rulings . It also issued 157 private rulings . Requests for reconsideration are filed with the Office of Chief Counsel and appeals

are filed with policy bodies.

Case Disposals By Office of Chief Counse l

Number of Cases

1~ .lnff

Lk~

52

One of the first published rulings involved the question of

whether wage increases are allowable costs . Early in Phase 11

of the Economic Stabilization

Program a potential conflict surfaced between the goals of stabilizing prices and stabilizing

wages and salaries . Price increases can occur if justified by

sufficient allowable cost increases, such as wages and salaries . If the Pay Board approves

an increase in wages of5 .5%

then the firm can automatically

raise prices to compensate for increased costs . Price Commission

Ruling 1971-3, 36 Fed. Reg.

23661 (1971) held that wage payments including fringe benefits

in excess of5 .5% per year are

not generally allowable costs . A situation arose on price posting requirements for drugs. Many

states prohibit a pharmacist from

posting prices for drugs . Relying

on the Supremacy Clause of the

Constitution, Price Commission

Ruling 1972-28, 37 Fed . Reg .

1412 (1972) required the posting

of drug prices despite states laws

to the contrary.

1971

= Im

T~

amV..m

A ruling of wide impact in the

price area is 1972-13, 37 Fed .

Reg . 765 (1972) . It deals with allowing a manufacturer to increase prices over the base

price, only to reflect allowable

costs in effect on November 13,

1971 and cost increases after

that date . The question arose

whether the manufacturer can

raise prices only on a dollar-ford6liar basis or on a percentage

basis which would allow a profit

element in the new price. The

Ruling held that the manufacturer can raise prices by the

same percent that costs increase

if the price increase did not

cause the manufacturer's profit

margin to exceed his base period

profit margin .

Another ruling deals with the re

lationship between price increases and the base period

profit margin . Price Commission

Ruling 1972-206, 37 Fed. Reg .

13192 (1972) held that if proof exists that a firm would have had a

smaller margin without a price

increase, the profit margin limitation is in violation .

Pay Board Ruling 1972-32, involved parties to a contract who

agreed that . any portion of the

increase in wages and salaries

not allowable under the Stabilization Program would be the

subject of a supplemental wage

provision after lifting of the controls which would provide the

full value of the wage increase

denied . The ruling held that the

value of this provision would be

chargeable against the5 .5 percent wage and salary limitation.

Regulations issued include procedural rules with respect to

disclosure of the results of economic stabilization investigations ; rules relating to stabilization matters before the Service ;

and the authority of Service employees and the Department of

Justice to inspect stabilization

records for tax administration

purposes .

General Litigation

Legal SerVices

General litigation case receipts

increased sharply over the preceding year. Although &posals

also increased (from 11,810 cases

in 1971 to 13,320 in 1972) the inventory of pending cases at the

end of the year stands at 7,429,

an increase of 555 cases over

1971 . Increased receipts occurred at National Office and

field levels and related to cases

in litigation and non-court cases,

such as advisory opinions. Receipts at the field level for 1972

included 6,996 cases in litigation

and 6,336 non-court cases, as

compared to 1971 field receipts

of 6,765 cases in litigation and

5,840 non-court cases . National

Office receipts for the year included 279 cases in litigation and

246 non-court cases, as compared to 1971 figures of 199 and

260, respectively. Field disposals

for 1972 included 6,698 cases in

litigation and 6,226 non-court

cases, in comparison to 1971 disposals of 5,911 cases in litigation

and 5,544 non-court cases. For

detailed statistics on case receipts and disposals, see tables

18 through 25 on page 125 .

The Supreme Court did not render any decisions in the general

litigation area during the year. It

did grant certiorari In one case .

Courts of appeals received and

denied 10 petitions for writs of

certiorari. The decisions in the

general litigation area involve issues relating to the collection of

Federal tax claims and liens, and

matters concerning injunctions

and civil enforcement of the Internal Revenue summons . The

summons cases continue to represent a major area of litigation

at the appellate level . Summaries

of some of the general litigation

cases begin at page 96.

-_- o -1~ - I

The Office of the Chief Counsel

fumished substantial legal servIces in connection with disclosure of information, non-collection matters, and matters arising

under the Freedom of Information Act (R U .S.C . 552) . General

litigation supervisors and lawyers participated in training sessions held In the regions in the

Advanced Techn ical Training

Program for Revenue Officers

and the Special Procedures Seminars. They also rendered extensive legal assistance and performed many services which did

not relate to docketed cases,

such as reviewing district office

collection cases and furnishing

advice on administrative procedures.

Interpretative Activities

Personnel of the Chief Counsel's

Office participated with other

technical personnel in solving urgent problems. They also reviewed all revenue rulings prior

to publication . Many questions of

significant impact arose, such as

the following :

In the partnership area, Chief

Counsel personnel participated

in the preparation of Rev. Proc.

72-13, 1972-2 I .R.B. 263, which

establishes the conditions ne cessary before the Service wi 11 consider Issuing advance rulings

concerning classification of an

organization as a limited partnership where a corporation Is the

sole general partner. The two

tests that must be satisfied are :

(1) that the limited partners will

not own directly or indirectly, individually or in the aggregate,

more than 20% of the stock of

the corporate general partner or

any affiliates ; and (2) if the corporate general partner has an

intere~t in only one limited partnership and total contributions to

that partnership are less than

$2,500,000 the net worth of the

corporate general partner at all

times will be at least 15% of such

total contributions or $250,000,

whichever is lesser, and if the

total contributions to the partnership are $250,000 or more, the

net worth of the corporate general partner at all times will be at

least 10% of the total contributions.

Attorneys in the Interpretative Division considered the treatment

of a lessee's gain or loss upon

the sale of a leasehold of land

where the lessee uses the lease

in his trade or business but is not

a dealer in leases . The publication of Rev. Rul . 72-85, 1972-9 I.R.B. 15, resolved the matter by

concluding that such a lease

hold is property used in the trade

or business for purposes of Code

1231 .

53

i

~L
y0 panicipmeo in

tZ"~11epa'r'a't`i`o"n 5f Rev . Rul . 72-

315, 1972-26, I .R .B . 8, which

holds that all finance charges on

revolving charge accounts at retail stores are deductible as Interest under Code Section 163

(a) . They considered related issues in connection with Rev .

Rul . 72-100, 197 :2-10, I.R .B . 9,

which deals with the reporting of

interest Income by the lender and

the interest deduction on an installment loan where the note requires, in the event of a prepayment, computation of interest by

the Rule of 78's method .

As in the past, tax exempt organizations received a great deal

of attention . In one case, Service

attorneys considered whether an

international exposition commemorating historical events and

cultural achievements and exhibiting products of various nations qualifies for recognition of

exemption under Code Section

501 (c) (3) . Rev. Rul . 71-545,

1971-2, C .B . 235 held that the

organization qualified for the

exemption .

Another problem involved the tax

status of abortion clinics that operate on a nonprofit basis and

provide abortions for indigent

women .

54

Leglisiative ACtivities

Legislative Assistance

The Office of Chief Counsel prepared reports and summaries on

fifteen bills in the alcohol, tobacco, firearms, and explosives

area for the Treasury Department . Attorneys also prepared

comments for departmental use

on five legislative proposals .

Revenue Legislative

Assistance Provide d

The Service provided technical

assistance to other offices of the

Treasury Department and to

committees of Congress in developing legislation and legislative proposals relating to internal

revenue matters. This assistance

involved (1) preparing information reports, technical reports,

drafts of bills and accompanying

technical explanations and other

data relating to legislative matters, and (2) attending public

hearings and congressional committee meetings . Most of the activity involved efforts toward legislation enacted during the year.

The Service also conducted research and study projects invoiving tax administrative problems and unintended benefits

and inequities with a view toward

corrective legislation .

7. Planning Activities
Introduction

The Service's planning activities

encompassed complex subjects

such as the new Asset Depreciation Range System, a restructuring of the income tax withholding

system, a system for detecting

unallowable tax return items

prior to audit, planning for revenue sharing, Federal collection

of state income taxes and full

use of information

d oc

~ments for

delinquency checking and income reporting .

Summaries of some of the more

important developments follow.

Office of Industrial Economics

The Service organized an Office

of Industrial Economics as a di-

.

ion of Planning and Research

vl early in fiscal s 1972, with responsibility for recommending

changes in definitions of asset

guideline classes and in the associated depreciation and repair

norms necessary to the new

Class Life Depreciation Range

System . The Office is staffed by

economists and engineers who

formulate plans for the future collection and analysis of tax return data . These professionals

collect information from trade

sources to serve as a basis for

applying the Class Life System to

various types of real and personal property, particularly computers, and such activities as

shipbuilding, communications,

commercial fisheries, and animal

husbandry . From these sources

they make recommendations for

new asset classes and for revision of asset classes and their

depreciation and repair guidelines .

The Class Life System affords

taxpayers the opportunity to determine reasonable allowances

for depreciation on property for

which the Service has established guideline classes, provided taxpayers adhere to prescribed accounting and reporting

rules . Taxpayers electing the

Class Life System may also elect

to use a guideline repair allowance rule for the determination of

allowable repair and maintenance expense .

Storage and Retrieval of

Images of Returns and

Related Documents (STAR)

The Service continued a test to

study costs and benefits of using

microfilmed images in lieu of

original documents at the Cincinnati Service Center and the

Cleveland District Office . By filming pages of all returns and related documents there is no need

to extract documents from the

files . Users can make new

images or photocopies with

view-printers. Microfilm images

permit faster response to taxpayer correspondence, and more

efficient service to taxpayers who

visit District Offices .

Technical Reference

Information

Researchers tested an automated

technical reference system this

year. Computers stored technical

information from the U . S. Code,

the Cumulative Bulletin, Index

Digest Supplements, and selected court decisions. Attorneys

and technical personnel at the

National Office and the Cincinnati District searched this data

base via remote terminals. Users

input key words or phrases, and

in response, the terminals displayed relevant citations, abstracts, or text .

Remittance Processing

System [RPS)

The Service tested a program to

modernize the clearing, depositing, and crediting of taxpayer's

checks through an automated

Remittance Processing System .

The heart of the RPS is a new

computer device which verifies

the taxpayer's identification and

remittance amount and signals

the operator to insert the check

into the system . The check then

moves past print stations where

it is automatically encoded with

the remittance amount and endorsed, with the complete audit

trail printed on the reverse side.

The operator then places the accompanying document, such as a

return or bill, into the numbering

station for imprinting of the document number and remittance

amount.

Benefits of this new system include rapid posting of credits to

tax account files, and a better

audit trail to facilitate payment

tracers.

Research Program s

In 1972 the Service directed research toward (a) Improving the

withholding system (b) developing proposed legislation to

promote the quality of tax return

preparer services ; (c) designing

a system to administer Federal

collection of state income taxes,

(d) providing data for use in

Federal revenue sharing ; (a) formulating a plant to extract benefits from information documents ;

and (f) implementing the employee plans master file system.

To counter underwithholding

problems inherent in the Tax Reform Act of 1969, Congress

passed new legislation . It included : (a) restructuring the withholding system to provide only

one low income allowance per

family in a dual employment situation ; (b) incorporating the dollar limitation into the withholding

system on the standard deduction ; and (c) adding a seventh

withholding rate and bracket to

the previous six-rate schedule .

The purpose of these changes is

to withhold the full amount of tax

liability up to a wage level of

about $25,000 for single persons

and $31,000 for married couples

where only one spouse works .

To avoid excessive withholding,

the law provides for a special

added withholding allowance (except in dual employment situations) and a liberalization of the

rules for claiming additional withholding allowances due to large

itemized deductlons.~

Tax Return Preparers

In response to growing complaints alleging incompetent and

unethical performance by some

tax return preparers, the Service

made a comprehensive study of

pending Congressional bills and

other proposals to remedy the

situation . The Service consulted

professional organizations and

leading commercial tax return

preparing companies . Commissioner Walters presented the

problems as well as the Service's*

efforts to deal with them at a

public hearing of the Legal and

Monetary Affairs Subcommittee

of the House Committee on Government Operations . Pending

proposals are :

1 . Imposing a statutory penalty

of from 10 to 25 percent of the

deficiency in tax (caused by

the preparer) on the preparer

who knowingly understates

income or overstates deductions, exemptions, or credits .

2. Authorizing the Government

to apply to a District Court for

an injunction to prevent further preparation of returns by

preparers who consistently

prepare false or deficient returns .

3 . Establishing a pen a Ity on the

preparer of approximately $5

for each return which he fails

to sign .

4. Requiring each pre parer to

fu rnish an annual information

return

I

isting all of their client

taxpayers with their Identification numbers.

The Service is also considering

the preparation of model courses

and course materials for the use

of schools and universities who

offer instruction In tax return

preparation .

Federal Collection of State

Individual Income Taxe s

The Congress is considering legislation to authorize the Service

by agreements, to collect and administer State individual income

taxes . A State would have to conform Its individual Income tax law

closely to the Federal law before

agreements could be made.

Under the proposed legislation,

Federal administrative and judicial procedures would apply to

the collection of State income

tax. The Service would collect

state withholding and estimated

income taxes under the same

procedures applicable to Federal

taxes .

This legislation would require redesign of the Service's systems

and procedures-including modifications in tax forms, instructions, regulations, internal operating procedures, and master file

systems .

Employee Plan Master

File Syste m

The Service developed a new

master file system for employee

pension, profit-sharing, and other

deferred compensation plans. It is

similar to the Business Master

File and Individual Master File,

and links employer entities with

adopted plans, the trusts or funds

through which they finance their

plans and the fiduciaries of these

trusts or funds . The system will

aid the Service in selecting returns for audit, in detecting nonfilers, and in providing management information for monitoring

the employee plan and fund area .

As part of the President's fivepoint program for pension reform,

the Departments of the Treasury

and Labor have undertaken a

study of the nature and extent of

employee benefit losses resulting

from termination of certain qualified pension and profit-sharing

plans.

Revenue Sharin g

Legislation is pending In Congress for sharing Federal revenue by State and local governments . Under this legislation, the

Service would extract data from

Federal individugi income tax returns to determine the amounts

of Federal assistance to States

and local government units. Taxpayers will provide their actual

place of residence rather than

mailing addresses on their tax

returns since this will determine

the allocation of revenue sharing

funds . The Service is developing

changes in 1972 individual Income tax forms and Instructions

and redesigning and reprogramming data processing procedures

to provide required data by the

fall of 1973 .

56 57
f

Total Information Document

Utilization Progra m

A plan for the creation of a wage

and other Income information

tape file incorporates all of the

useable information documents

as a base for conducting more effective income and employment

tax enforcement programs . This

program should increase taxpayer compliance and revenue

by pinpointing delinquent return

leads and assuring that payers

and payees have properly reported all income and withheld

taxes .

Federal-State Cooperation

The Service expanded programs

for Federal-State cooperation in

1972 . Tax administrators in 41

States, and the District of Columbia and Puerto Rico, now receive

uniform data on magnetic tape

from the Service's Individual

Master File, Only 32 States received data in the previous year. With the exception of Nevada

and Texas the Service has entered into agreements for exchange of tax Information with

all States, and the District of

Columbia and Puerto Rico. Over

one-half of these agreements

conform to the model designed

to reflect recent changes in

Federal and State tax administration .

Long-Range Planning System

Develops Program Plan s

In 1971, the Service re-examined

its long-range planning process

and subsequently developed a

new System which is a simplified,

flexible version of the Planning,

Programming, and Budgeting

System (PPBS) . The new system

defines the nature and size of the

tax administration job, develops

goals, proposes and analyzes different programs, establishes concrete program objectives, provides the basis for budgeting resources and for evaluating effectiveness In terms of objectives.

Regional Commissioners increasingly are participating in the

long-range planning process

through their review of program

issues and assumptions, and

through conferences devoted to

review of program plhns .

The Taxpayer Compliance

Measurement Program

The Compliarice Measurement

Program (TCMP) is the Service's

major long-term scientific research program . The program

uses statistical survey techniques

to determine how well taxpayers

are complying with tax laws .

TCIVIP provides a basis to compare the size of the tax administration job versus the amount of

the job being done . By highlighting significant non-compliance

problems, it allows the Service's

program development effort to

focus on the areas most in need

of attention .

TCMP information is also necessary to develop the Discriminant

Function formulas used to select

high error probability returns for

examination .

Analytical Studies

Sharpen Program

Development

The Service conductstd a number

of analytical and organizational

studies during the year. These include :

Discriminant Function

Formulas Developed for

Small Corporation Returns

A completed TCMP survey of corporations with assets of less than

$1 million is helping to develop

discriminant function formulas to

select small corporations' returns

for examination . The Service will

install the new classification system in 1973.

Enforcement Operations in

Hazardous Duty Areas

The Service initiated a study of

the hazards to enforcement personnel working in inner city areas

with a high incidence of violent

crime . Major focal areas of the

study include the exclusive use

of office audit techniques for returns from these areas, and improved coordination of account

collection activities .

Measuring the Impact of

Compliance Programs

The Service is conducting two

studies to develop methods for

measuring the impact of enforcement programs on taxpayer compliance.

The fi rst study attempts to

examine the deterrent effect of

the returns examination program

on compliance . Information on

the tax reported on returns in the

years before and after audit will

help determine whether audit increases the amount of tax reported in subsequent years.

The second study will use specialized statistical methods to

determine the effects of the Service's audit program, other IRS

compliance programs, and social

and economic factors on levels

of compliance for a cross section

of taxpayers .

Statistics of Income

Highlights

Estimates of individual income

and business receipts published

in the Statistics of Income reports reflected continued growth

in the U. S. economy .

Individual taxpayers reported adjusted gross income of $632 billion on tax year 1970 returns, up

4.7 percent from 1969 . Taxable

income was $401 billion after allowing for personal exemptions

and deductions . Changes in individual filing requirements and

increased deductions granted

certain low-income taxpayers In

the Tax Reform Act of 1969

dampened the amount of the

1970 increase in income .

Receipts reported on business

returns increased to more than

$1

.9 trillion . Corporations alone

accounted for $1 .6 trillion of tax

year 1970 receipts, while corporate profits increased to $83

billion . In the unincorporated

area, proprietorships reported receipts of $238 billion and profits

of $33 billion ; partnerships had

profits of $9 .8 billion on receipts

of $92 billion .

The table below focuses on the

frequency and amount of personal deductions and exemptions

claimed on individual income tax

returns. The total amount of deductions and exemptions for tax

year 1970 was approximately 28

percent greater than that for

1966 . This growth resulted mainly

from the tremendous increase in

itemized deductions, up almost

62 percent in the period.

The chart at the top of the next

page reflects the large increase

in deductions itemized on individual income tax returns. In the

period 1966-1970, deductions for

State and local income taxes,

real estate taxes and home mortgage interest rose by 121 percent, 58 percent, and 41 percent

respectively . Over the longer period 1960-1970, the total amount

of taxes deducted more than

tripled (up 205 percent) and deductions for interest paid has

a most tripled (up 184 percent) .

Chart B on the next page pictures how the returns that individuals filed for 1970 and the tax

liability they reported are distributed in terms of the size of

tax.

Individual income tax returns: Number of returns, personal deductions and exemption s

It.. Income year

1966 1967 1968 1969 1970

(Thausa.4s)

All individual returns . total 70,160 71.652 73,729 75,834 74.286

Standard deduction returns' 41 .500 41,877 41 .693 40,914 38.827

Itemized deduction returns 28,550 29.774 32.030 34,915 35,459

Number of exemptions 194.062 193,036 201 .288 206,197 264.187

(Million dollars)

Total personal deductions and exemptions 193 .363 200,543 212.024 225,555 248,14 3

Amount of exemptions 116,977 118,822 120 .773

Amount of standard deduction 21 .820 22,103 22,074

Amount of Itemized deductions 54,565 59,523 69,177

Itemized deductions by type:

123,718 127.574

21,627 32.370

80 .210 88,199

Taxes total 17,468 24,360 32,045

Real estat taxes 7.315 9.362 11,559

State ud Io"I income taxes 4.006 6,499 8 .997

Other xes 5,925 8 .481 11.489

Interest paid, total 14.971 1 Not 19,545 23,895

tabulate d

Home mortgage interest 8:142 1 1.: 71~232 1~:13978

Other interest Paid 51330 1 099

Contributions 9.122 1 1,139 12.913

Medical and dental expenses 7,681 8,438 1 D.588

Other deductions 5,322 6.647 8,752

1 Includes returns with no adjusted gross income .

58 1 59
1!

1;

!i

Percent Change in Deductions Itemized

on Federa! In ividual Income Tax

Returns Slope 19W

TAX UAE~LFTY

.1

Chart EL Number of Returns and Amount Of Tas~ Percent Distribution by Size of Tax Liability. 1970 for partnerships and proprietorPERCENT OF RETUR14S

as,

PERCENT OF TAX

Significant Developments for

the Tax Models In 1972

The use of a larger computer for

processing tax files with a standard programming language meant

more flexibility and greater speed

and production capacity in tax

model operations.

The Service developed tax models nine years ago to develop

estimates of the revenue effect of

proposed tax legislation . Each

model consists of the application

of generalized computer programs to specially formatted data

files made up of samples of taxpayer records.

The models are valuable tools for

fiscal, administrative, and economic planning .

The uses of tax model tabulations

can be shown by reference to the

Revenue Act of 1971 . The Service

developed statistical tables to

simulate the revenue effects of

the proposed restoration of investment credit provisions . After

enactment, the Service developed further simulations to project the number of returns to be

filed, categorized by complexity .

In the past year other Government agencies made use of tax

model data . The Department of

Agriculture requested tabulations

concerning farm income by type

of income and geographic region ; the Small Business Administration requested income dat a

ships by size of receipts, industrial classification, and State ; the

recently established Cost of Living Council requested corporate

sales data by industrial classifisa cations and size classes tailored

to the Council's purposes .

1 .

Returns Filed Projections

Returns filed projections serve as

a basis for planning activities

throughout the Service . The Service revises the projections each

year to include c hanges in tax

lav~ and to incorp

0

rate the most

recent thinking in economic and

demographic expectations.

Between 1965 and 1970, the total

number of returns filed increased

almost 11 million, with much of

the increase occurring in individual returns. Between 1970 and

197-2, the total number of returns

dropped almost 3 million . This is

largely traceable to changes in

filing requirements for individuals

and other provisions of the Tax

Reform Act of 1969, and the Revenue Act of 1971 .

Present indications are that the

total number of returns to be

filed will begin to grow rapidly

starting in 1973, and by 1975 will

exceed 120 million returns and

should reach 132 million by 1980 .

Projections of some major categories of returns are shown in

the table below.

Selected Types of Returns Filed in 1971, and Projected for 1973, 2975, and 1980 by Calendar Year

Type of Return

(Thouxands)

Actual

1971

Totalreturns

Individual . tota l

AG~ under $10,OOD I

AG $ 1 0,000 and over

Fiduciary

Partnership

Corporation

Forms 1 120, 1120 Speci .1, tota l

Assets under $50,000 2

Assets $50 .000 under $1 millicn

Assets $1 million or more

For. 1120.S. I 120-DISC and

1120 X

Employment

Estate and Gift

Exempt Organization

Excise

Otherx

111,374

75,392

51,402

23,990

1,2~12

1,005

1,833

1,54 2

682

757

103

Proi-lied

1973 2 975

114,843 120,069

77 .425 81 .864

48 .981 47,710

28,443 34,154

1,374 1 .553

1 .026 1,042

1 .965 2 .105

1,640 1.74 1

703 739

$21 876

116 126

290 325 364

21,909 22,981 23,141

374 385 423

562 524 568

709 740 73 0

8 .359 8,424 8 .663

C e .g .

2980 1971~1980

131 .819 18.4

91,618 21.5

44 .271 13 .9

47,347 97.4

1,978 60.5

1,083 7.7

2,480 35.3

2.021 . 31.0

837 22 .8

1 .028 35 .8

155 50.2

459

23 .754

527

683

30 1

9 .396

58. 3

8 .4

40 .9

21 .4

-57 .6

12 .4

NOTE : Detail may not add because of rounding. Data by size class Ire estimated .

I

In addition to Form 1040, includes Forms 1040A . 1040C, NR, PR, and SS .

:,n,.:U.d .. For. 1 120 returns with assets not reported.

des Forms 7 . 8, 11 . 118, 1 IC . 678 through 1971, 4705, 4706, 4707, 4708. 1040ES, 7004, 7005, 2438, and 1042 .

60 61

Financial Developments

The Service's fiscal year 1972

budget totaled $1 .1 billion, providing for an employment level

of close to 73,000 . Administration

costs amount' to approximately

one-half of one percent of tax

collections . A number of internal organizational developments in 1972

brought imports nt budgetary

changes to the Service. Late in

FY 1971, the Secretary approved

changes in the I

RS organization

that resulted in a newly designated appropriation : Accounts,

Collection and Taxpayer Service

(ACTS). Under this alignment,

revenue accounting and returns

processing functions, formerly an

appropriaiton in themselves, Collection (Formerly in Compliance),

and an expanded taxpayer service program were combined to

form the new appropriation .

In the shift of the Alcohol, Tobacco, and Firearms Division to a

separate bureau within Treasury,

the Service lost 4,000 man years

and $73 .7 million of its appropriation which were shifted to the

new AT&F Bureau.

Cost Reduction :nd

Management Im rovement

Efforts Yield Substantial

Saving

s

Cost reduction and management

improvement programs saved the

Service $11 .2 million in 1972 .

Of the total savings realized, $3.4

million is attributable to9 major

projects, several of which appear

elsewhere in this report. Hundreds of operational improvements accounted for the balance

of $7 .8 million .

64

Recruitment Efforts

Successful In Face of

Requirements

Two developments had some impact on the 1972 recruitment

effort . First, a government-Wide

requirement to reduce the average grade level caused the Service to recruit new employees at

the lowest possible grade level.

The Service had to hire at GS-4

or GS-5, instead of the more

usual GS-7 level . A large number

of qualified candidates accepted

GS-5 .

The other development involved

cancellation of special salary

rates for accountants and accelerated promotions from GS-5 to

GS-7 for revenue agents and

special agents .

Man,Years Authorized and Realized

Appropriation 1971

Salaries and expenses1 .560

Accounts, collection and

taxpayer service 23 .110

Compliance 45,281

Total 69,951

Increase 1972 over 1971

Service Employee Nominated

as Outstanding Federal

Handicapped Employee

The Service nominated Miss

Patricia Porembski, a cerebral

palsy victim and a Tax Examiner

at the North Atlantic Service

Center, for the Outstanding Federal Handicapped Employee of

the Year. The Civil Service Commission honored her at a ceremony on April 6th, during which

each finalist received a special

citation from Mrs . Tricia Nixon

Cox . At a subsequent ceremony

Patricia received a plaque as the

IRS nominee. Other nominees

awarded IRS plaques are : Joseph

Cihanowyz, Librarian, Newark

District ; JamesA. Gray, Tax Ex--

anniner, Jacksonville District ; and

Reese Nelson, Accounting Technician, Ogden Service Center.

Authorized Realized

Percentage

Realized

2972 1972 1972 1971 1972

2 .687 1,566 1.660 100 .4 98 .4

36.55 22,125 36 .089 95 .7 98 .7

34 . 502 45,045 34,198 99 .5 99 .1

72,744 68,736 71,947 98 .3 98 .9

+2,793 +3,211 +.6

Note:

Deiinouert Accounts and Returns function transferred from Compliance to Accounts,

Collection

& Taxpayer Service in 1972.

Plaques Presented for

Distinguished Work

Twenty-six persons receive

d

plaques for their distinguished

work for the Service's handicapped . Twenty-two are Service

workers, while four are from outside the Service.

President's Committee

Commends the Service on

Employment of the

Handicapped

In a letter to the Commissioner

on December 9, 1971, Chairman

Harold Russell of the President's

Committee on Employment of the

Handicapped referred to the

Service as "an agency doing an

outstanding job of opening up

broader opportunities for the

handicapped -many times in

areas where the handicapped

have never worked before." Mr.

Russell extended his congratulations to the Commissioner and to

"all who have had a part in compiling such a splendid record ."

The Commissioner passed on

this tribute to the many Service

employees who have worked with

enthusiasm and dedication on

the program for employing the

handicapped .

The Service continued to make

inroads for employment of deaf

professionals (programmers and

statisticians), the retarded (about

100 are on Service rolls), and the

blind as taxpayer service representatives, (71 in 42 districts, 50

cities, 35 states).

Handicapped employees continued to do a

good job for the Service. Patricia Porembski c nQuared cerebral palsy to pursue full-time

employment a the Senior T., Exarnim., at the

Brookhaven Service Center . This year she

was presented with In award a an -11tnding handicapped Federal employee . Shown

left to right are Commissioner Welt0m. Patri

.

cia Porembskl, Patricia Milan C-, and Jayne B. Spain at the ceremony.

Although confined to a wheelchair since blah,

Donad Peterson, Pictured at his deak In the

Ogden Service Center, we. an. .1 212p .me.

n1el 1mP'0y1*1 who 1-11mat In. challenge

., s new i0b

at

the "same Serlice Confer.

65 ii I
J

Roy Kumm', Executive Director, Arkansas EnI .,p,i,.a

'

., the Blind, nao .i- . plaque to,

his distinguished work in behalf of the SOrvfee's handicapped . S-hty blind Taxpayers

Senrice Representatives ho,e been trained bY

the Enterprise . A. J. S,hafi., Direct.,.1 IRS

P. ..rm.1 DN4i.h, and Nicholas W. Wiffirthm,

IRS Coordinator to, the EmPlOYMON 01 the

Handicapped, made

the p .

...motion . Pictured

tell to fight, Mr. Schaller, Mr. Kumpe, and Mr .

Willi...

Printed Products for the

Visually Handicapped

Last year, the Service produced

"Your Federal Income Tax" (Publication 17) in a form useful for

the visually handicapped . By

using a process of electronic

composition, finished products

appear in braille for the blind and

in large print for the partially

sighted .

66

Scholarship Program

Aids Disadvantaged

The Service inaugurated a scholarship program for disadvantaged

high school seniors who want to

major in accounting while working part-time and during summer

vacations . The scholarships provide employment while students

are not attending college, plus

pa yment of fees and expenses

up to a maximum of $5,000 per

year-the bulk of which is for

salaries .

Union Relations

Successful negotiations led to

the first multi-unit agreement

with the National Association of

Internal Revenue Employees

(NAIRE) . At the same time, the

Commissioner issued policy and

philosophy statements on unionmanagement relations.

The signing of the agreement on

April 5 ' 1972, covering all district

offices in which NAIRE has

gained exclusive recognition,

marked the culmination of nine

months of intense bargaining .

The Service and the union started

negotiations on July 9, 1971,

when NAIRE first submitted its

proposals for bargaining, and

continued them through the formulation of management positions by a national planning committee .

The agreement covers about 28,-

000 employees in 54 district

offices, marking the first time that

the Service and a Federal employee union reached a nationwide agreement . Among important provisions are those dealing

with promotion, travel, grievances, training, and discipline .

The Service anticipates expansion and change in union relations activities as a result of the

multi-unit pattern of negotiated

agreements which set the tone

for similar agreements covering

service center and regional office

employees.

Gain Achieved in

Equal Employment

Minority group employees and

women made encouraging gains

in all grades from GS-5 to GS-17.

Twenty-two members of minority

groups and women, assigned to

senior staff and managerial positions, were at GS-15 level and

above at year's end .

Under changes in Civil Service

standards, the Service now hires

female criminal investigators . The

Service urged supervisors to encourage women to compete for

supervisory and managerial jobs

and the number of women serving at GS-13 and above increased more than 20% .

New Management

Careers Program

The Service implemented a new

Careers Program to fill most

managerial positions.'Major features include : establishment of

Regional Boards, thereby placing

reliance on collective judgment;

a comprehensive selection and

development process ; selection

in advance of first line supervisory vacancies where feasible ;

required training for those selected for first-line supervisory positions before assuming new

duties ; and continued emphasis

on career development of employees.

Training Program

Varied and Extensive

The majority of Service jobs require at least introductory specialized training . The Training Division designed over 300

courses, ranging from clerical

training to executive development

to meet these needs . In 1972,

49,000 employees enrolled in advanced technical and professional skills courses . An additional 30,000 para-professionals

attended courses in service center occupations and nearly 5,500

newly recruited em

pi

oyees received training in basic skills .

Commissioner Walters (1011) shakes hands with

Vincent Cohnery, President at NAIRE, on the

occasion Of the Multi-Unit Agreement signing

in April. The Agreement covered all district

office, in which NAIRE he, gained -I-N.

recognition.

Course Revision Stresses

Quality and Economy

The Service restructured many

basic training programs and removed extraneous materials to

shorten training time whenever

possible .

Typical of these redesigned programs is the basic training

course for revenue officers . The

revised program deleted 60 hours

of classroom time for each of the

500 revenue officers trained annually. This revision will save 14

man-years and $3 .5 million each

year.

Similar revisions continue in

basic training courses for taxpayer service representatives

and revenue agents . Approximately 1100 taxpayer service representatives and 1000 new revenue agents receive training each

year .

67
New Techniques at

Training Centers

The Service completed a network

of field training centers in the

past year. These facilities will

provide more efficient and econonbcal training, and allow for

more extensive use of modem

instructional aids such as student-responder systems and

closed-circuit television.

Computer-assisted instruction

plays an Important role in training service center data transcribers. Some 6,000 employees

received training using this technique in conjunction with the Direct Data Entry System . Programmed instruction, algorithms,

and similar techniques extended

the concept of self-instruction .

The year's accomplishments also

included the publication of a

series of program guides . The

guides mark the introduction of a

true management-.by-objeclives

system into the training area and

have already proved to be practical, efficient, management tools .

Management Programs

Revised and Unified

The Service revised the Basic

Supervisory Course and began

modifying the Executive Selection and Development Program to

incorporate It into the new Federal Executive Development Program.

Changes in the Basic Supervisory

Course included development of

a video training unit on theories

of management and new revised

material on utilization of resources, performance analysis,

union-management relations, and

training and career development .

Revisions to the executive development program provide guidelines for pre-identification of

managers with high executive potential and establish a system for

insuring continued development

of incumbent executives .

68

Plans are als6 well underway to

unify the Service's various management development programs.

The goal of the new unified Management Career Program is to

guarantee uniform, systematic

development by new supervisors

and managers of the skills necessary for performances before actual assignment to the job .

Effective and Rapid Training

The early stages of the Economic

Stabilization Program (ESP) involved constant change . A selfinstructional Reference Guide included materials designed to

enable employees to learn the

new skills needed to perform

their jobs at their work areas. An

instructor's Manual aided in

in teaching stabilization procedures and regulations . These melerials will satisfy most taxpayer

service representative needs for

the near future. The Service also

produced a handbook for compliance investigators.

Instructors from the Service, the

Price Commission, and the Pay

Board conducted regional seminars on pay regulations and price

and rent exceptions .

Now Furniture Used to

Brighten IRS Office s

The General Services Administration selected the Internal Revenue Serv.ice as the first major

Government agency to use contemporary-style furniture . All desk

work stations in the three new

IRS service centers are of contemporary design, square corners and functional form .

Contemporary desks and chairs,

as well as the bright decor and

open space layout within the

centers, encourage the return of

the 2,000 or so temporary employees hired for each filing period . Further, these cheerful and

attractive work areas are expected to improve employee

productivity and morale .

Facsimile Transmission

Equipment Installed

Nationwide

The Service installed special

facsimile transmission equipment

nationwide last year to support

Phase 11 of the Economic Stabilization Program . The National Office uses automatic polling and

multi-caster broadcast devices to

transmit information to its 275

field offices . A transmission can

reach all offices in 18 minutes.

The Accident Prevention

Progra m

During 1971, the first year of the

new "Zero In On Federal Safety"

campaign, the accident prevention effort of the Service resulted

in a frequency rate of only 1 .8

disabling injuries per one million

man-hours the lowest ever . This

rate is about 70% less than the

Federal rate.

This year, Service personnel

drove almost 114 million miles

on official business with an accident frequency rate of 7.9 per

million miles driven .

Also in 1972 the Service acted on

81 claims under the Military Personnel and Civilian Employees'

Claims Act of 1964, settling 49 in

favor of employees who suffered

personal property losses incident

to their employment . This is a

decrease of 19 percent over the

number of claims handled last

year.

Improved Protection of

Facilities

The Service updated plans and

developed new procedures to

cope with bomb threats, civil

disorders, and demonstrations

against its facilities . Problems of

this type decreased significantly

from the preceding two years .

Service offices lost less than

2,000 man-hours from bomb

threat evacuations in fiscal 1972

compared to 12,000 in fiscai

1971 .

Inspection Activities Assure

integrity of IR S

The success of the American tax

system depends on public confidence in the Internal Revenue

Service as the fair and impartial

administrator of the federal tax

laws. Inspection, through Its internal audit and internal security

activities, assists Service managers in their efforts to maintain

operational integrity . Management officials have the responsibility for taking appropriate action on facts developed through

audits and investigations . These

officials refer violations of federal criminal statutes directly to

the Department of Justice for

prosecutive consideration .

Internal Audit Programs Result

In Improved Operations

Internal audit programs provide

management with independent

reviews of the accounting, financial, and other operating acti v1_

ties of the Service . These reviews

help insure that policies, procedures, and controls protect the

revenue and are applied efficiently and effectively. The Service places emphasis on activities

most closely associated with collection of revenue and enforcement of tax laws.

Internal audit reviews automatic

data processing activities on a

continuing basis . This on-line

auditing extends to other Service

programs . One objective is to

identify problems of interpretation or implementation as they

occur instead of waiting for periodic audits. Prompt reporting enables management to take immediate action to strengthen procedures, controls, and communications .

Corrective actions by management on internal audit findings

often result in additional revenue

or savings, which for fiscal year

1972 amounts to an estimated

$37 million .

496- 192 0 - 73 - 6

Examples of improvements and

savings resulting from these actions follow :

Internal Audit designed a computer program which identified

more than 82,000 income tax returns containing suspect exemption deductions . By using data

provided from this program, internal auditors and internal security inspectors detected several fraudulent refund schemes

perpetrated by tax practitioners .

Another internal audit computer

program identified over 30,000

income tax returns with tax due

of more than $4 million . Tests of

returns filed for. tax year 1969

disclosed that many taxpayers

made duplicate claims of credits

for exemptions and standard .deductions already allowed by the

tax tables .

Another recommendation involved revising procedures to

verify the status of surviving

widow(er) with a dependent

child . The Service had automatically allowed joint tax rates

on all such returns although the

higher single or unmarried head

of household tax rates applied in

many cases . The Service is determining the *correct filing status

of these taxpayers and studying

systemic controls and tax return revisions. Tests Indicate that

revised annual procedures will

result in additional revenue of

several million dollars .

Investigative Team

Produces Result s

Internal auditors and internal security inspectors investigate

breaches of integrity by employees as well as by taxpayers in

collusion with employees . Intensive investigations have resulted

in successful criminal prosecutions as well as recommendations for improved controls and

procedures .

One investigation involved attempted bribery of an internal

security inspector. The case has

extended over several years and

resulted in arrests or indictments

of 31 employees or former employees and 21 taxpayers or tax

practitioners . By June 30, 1972,

controlled tax examinations in

connection with the investigation

had resulted in proposed additional taxes and penalties of $8 .1

million .

Another investigation brought

about the arrest of two individuals on charges of preparing and

filing false tax returns . To date,

investigators have identified 228

returns claiming questionable

refunds of $191,000 .

Internal Security Division

Activities Extensive

In Scope

Continuing Attempts to Bribe

Service Personnel

The Service's program of enlisting the support of employees in

reporting bribery attempts continues to show results. In fiscal

year 1972, 125 employees reported possible bribery attempts,

resulting in 47 arrests or indictments .

Service employees have continued most effectively In bringing

to justice those persons who

challenge the integrity of the

Service through bribery . Service

employees have reported 1,003

bribery attempts since 1961 . One

of every four instances resulted

in prosecution action . During the

eleven year period, bribery investigations resulted in 283 arrests

69

111111
I

I

or indictments, and 202 convictions or guilty pleas . At the end

of the fiscal year 41 persons

charged with attempted bribery

awaited trial . Bribes offered,

solicited, or paid ranged from

$40 .00 to $100,000. In the latter

case, the taxpayer attempted to

avoid over one million dollars in

tax assessments .

The graph on this page Illustrates

program results . Each bar on the

graph shows the number of attempted bribery cases reported

by employees ; the shaded subsection indicates the number of

arrests or indictment each year

resulting from these reports.

The following cases show that attempts to bribe follow no particular location or occupational patems .

A New York accountant offered a

bribe to a revenue agent for a

favorable audit . He pleaded guilty

and received a suspended prison

term, probation, and a $3,000

fine.

A Pennsylvania attorney received

three months imprisonment, one

year probation, and a fine of

$3,000 for attempting to bribe a

revenue officer to abate penalties

owed on an estate tax return .

A New York fish market owner

and his accountant offered a

bribe for a favorable audit . They

received fines of $600 and $750,

and sentences of one and two

years probation, respectively .

A North Carolina liquor law violator offered an investigator

$2600 to induce him to delay

confidential information and not

raid or investigate his illicit liqour operations . He received 18

months Imprisonment, three

years probation, and a $24,000

fine .

A Florida accountant received

three months Imprisonment, 20

months probation, and a fine of

$5,000 for offering a bribe of

$1,500 to influence an audit.

70

ATTEMPTED

BRIBERY PROGRAM

Investigations,

Initiated

120

Arrests or

Indictment,

50

46

68

17

1962 1963 1964 1965

105 too

32

4

135 125

83

47 47

14 0

120

100

so

6 0

4 0

I ' I 1 0 21 0

1966 1967 1968 1969 1970 1971 1972

Fiscel Year

An Illinois supermarket owner

offered a bribe to a revenue officer to delay enforced collection

of taxes . He pleaded guilty, and

received six months imprisonment followed by 30 months probation .

A New York Federal Home Loan

Bank Board employee, moonlighting as a public accountant,

offered a revenue agent $5,200

for a favorable audit. He pleaded

guilty and received four months

imprisonment and three years

probation .

Convicted pleaded

Guilty

F.Y. '67 14

F.Y. '68 26 is19

F.Y . '69 9 30

F'Y . '70 1. 32

F.~ . '71 22 48

F .Y. '72 is 49

Total 103 197

Convictions Continue

Upward Trend

Comparison of convictions for the

past six fiscal years appears in

the table below. Of a total of 300

convictions, 197 preferred to

plead guilty rather than to go to

trial .

Employees,

Formuir Tout Non

Employ..

27 16 33

12 33 45

13 26 39

20 26

16 54 4670

13 54 67

91 209 300

I

Organized Crime Influences

During the past thre a years the

Service conducted extensive investigations of possible corruptive influence by organized crime

upon the Service. In one case

' the investigation involved 90 persons, 37 of whom were IRS employees or former employees,

and 21 were organized crime figures . To date there have been 25

indictments and 20 convictions .

The 25 persons indicted include

8 organized crime figures, 11

Service employees' 4 former

Service employees, and 2 tax

practitioners.

Criminal Action

Remains Constan t

During this fiscal year officials

arrested or indicted 77 individuals including 12 employees or

former employees of the Service

and 65 taxpayers, tax practitioners or others . Comparison of

prosecutive actions initiated by

the Service during the past three

years appears in the table below.

At the end of the year, 70 taxpayers and 18 employees or former employees awaited trial or

possible indictment .

Prosecution actions covered

such charges as emblezzlement,

selling confidential tax information, fraudulent refund schemes,

attempted bribery, solicitation of

a bribe, conspiracy to defraud

the Government of taxes due,

preparation of false returns,

perjury, and obstruction of justice .

A few examples follow :

An employee who converted

seized property to his .own use,

pleaded guilty and received a

fine . The investigation continues

with two additional arrests .

Another employee received $13,-

000 to influence his decision on

official matters. The court sentenced him to one year Imprisonment and ordered him to pay a

fine of $2,500 .

The court convicted an other employee of unauthorized disclosure and conspiracy to disclose

information from a Federal tax

return .

In one fraudulent refund scheme,

an employee filed numerous Federal and state tax returns using

valid taxpayers names and social

security numbers .

I

nvestigation

disclosed the employee maintained the funds acquired under

assumed names in 26 bank accounts located in Los Angeles,

Chicago, Switzerland, New Yor k

PERSONS INVOLVED IN ATTEMPTS

To CORRUPT IRS

Employees or former employees

of IRS

Taxpayers, tax practitioners.

others

TOTAL

and the Bahamas . The Service

recovered over $116,000, consiltuting full restitution. The perpetrator of the scheme pleaded

guilty and received two months in

prison and three years probation .

High Case Closure

Rate Continues

The Internal Security Division

completed 13,863 investigations

during fiscal year 1972. Investigators carried out police record

searches on 15,782 persons considered for temporary short-term

appointments or for positions

created for special economic and

educational programs .

The vast majority of investigations involving an alleged impropriety on the part of Service personnel result in exoneration of

the employee . The employees

identified as involved in questionable or unlawful actions constitute a very small percentage of

the IRS employment force .

The tabulation on page 72 shows

the types of investigations completed during the past two years

and related dispositions .

Number .-tod

or indicted

1970 1971 1072

TOTAL

21

37

58

22 12 45

54 63 156

66 : 77 201

7 1

I ~ ;.
no d,sc,pi,,a,y achons

Type of Investigation and Action 1 97 1 1972

Total Investigations Closed 14,263 13,868

Personnel Investigation s

Number of cases closed, total 11 .600 10,697

Character and Security Investigabons 8,946 7,877

Conduct Investigations 499 618

Special Inquiries 2.155 2,202

Actions taken by Service management officials as a result

of personnel investigation s

Retected for Employment 146 296

Clearance Letters on Conduct Investigations 1 (1) 174

Disciplinary actions, total 582 714

Separations2 222 211

Bribery . extortion . or collusion 8 2

Embenlement, or theft of Government fund s

or prooo rty 2 4

Fa iture of employee to pay proper tax 6 9

Falsification or distortion of Government

tape rts, records . etc . 91 101

Una uthorized outside activity 2 9

Failure to discharge duties properly Di, 0 id n 6 7

ulgence of c ~nh is itia information 0 3

Acc :ptanc . of fees

of

gratuities 1 1

Per orual and other misconduct 106 75

Suspension from duty and pay 37 34

Reprimands, warnings . or demotions 323 469

Nondisciplinary actions 10 .913 .9.SI31

Other Investigations

Number of cases closed, total 2,663 3,171

A:ssault on Service Personnel (1) z7 Disel,

sure of Office( Information 0 2

Applications for admission to practice before the I.R.S . . 899 1,178

Ch

.

rges ag,mst Attorneys, CPA's and Enrollees 60 78

Federal Tort Claims 214 ISO

Bribery

Discrimination 2

129 - 230

1

Investigations for other Treasury Bureaus 1 .359 1,585

r included under ondisciplinary actions in previous years .

includes resignations, retirements, or other separations while employees were

under investigation or before administrative decision was made on disciplinary

action where in vestigation disclosed derogatory information .

Excludes nondisciplinary actions in Conduct Investigations .

Data not compiled Inspection for f .y . 1971 .

Assaults and Threats

During the year Intemal Security

was assigned primary jurisdiction

for investigating threats, assaults,

and forcible interference against

IRS personnel . This additional

responsibility is being accorded

the highest priority by the Inspection Service .

Assistance to Other Agencies

The Internal Security Division

conducted 1,585 investigations

for other Treasury components.

One case involved cooperation

with the Federal Bureau of Investigation, Secret Service and the

Postal Inspection Service in

breaking a refund check theft

and cashing scheme in Chicago .

Inspectors have participated in

details involving protection of

dignitaries and civil disturbances.

The Service loaned inspectors to

the Knapp Commission to investigate corruption in the Ne w

72

York City Police Department. Mr.

Whitman Knapp, Commission

Chairman, commended the Inspectors for an outstanding job .

He stressed hope that city departments could "come up with

a system similar to .the Internal

Revenue Service, which is relatively free of corruption because

of their fine Inspection Service."

As in prior years, the Service

provided assistance to the Virgin

Islands in developing and installing a modem tax system. Since

1962, this assistance has significantly contributed to improved

operations .

Pictured above on the left is formor Assistant

Commissioner (inspection) Vernon D. Acres,

receiving an award from Commissioner John .

nie M . Walters . The award was given 1, appr,

clation of the magnificent confribation Mr.

Acres made during the thlHeon years he

served as Assistant Commissioner (InspecHart).
Gross Collections Rise Tax Collections From All Sources

Billions of Dollars

- W

IN 1, ON Ch

3C9

overall tax reductions from the

Revenue Act of 1971 on individual, corporation, and excise tax

collections. The chart at the right

presents data on collections for

the various tax categories .

exceeded only by those in 1967

and 1969 . Improved economic

conditions, higher corporate profits, and steadily rising salaries

and wages were principal factors

contributing to the record collection picture These factors offse t

to Record High

Gross internal revenue collections surpassed $200 billion for

the first time . Contributing to the

record level was the largest

amount ever collected in one

month, $27 .2 billion in April .

Total collections of $209.9 billion

were up $183 billion (9.5%) from

fiscal year 1971 . The increase

was the third largest in history,

corporation

Income taxes

1011 .9

Individa .1

income taxes

39 .9

43 J

Employment Estate and

taxes gain taxes

115 .9 16

Excise taxes

A

Individual income tax receipts of

$108 .9 billion accounted for over

one-half of total collections . Corporation income taxes and employment taxes contributed the

bulk of the remainder. Other

classes of tax showed minor

changes .

New withholding rates-provided

by the Revenue Act of 1971 have

resulted in over-withholding because many taxpayers did not

adjust their withholding allowances and exemptions to accord

with the new law. The resulting

over-withholding naturally

boosted collections .

Corporation income tax collections rose by $4 .6 billion, up 15 .2

percent. Improved economic conditions and higher corporate

profits contributed to the increase . The 7 percent job development credit and accelerated

depreciation provisions offset

some of the additional collections

that would have occurred from

rising profits .

Excise taxes levied on a variety

of manufactured products, services, and activities, declined

slightly from the 1971 record

high . Collections of $16.8 billion

were lower because of the repeal

of excise taxes on vehicles . Tobacco tax collections increased

from last year, while alcohol tax

collections were up $688 thousand. Over the last 10 years,

tobacco tax collections have remained relatively stable while

receipts from alcohol tax have

increased by almost 50 percent.

Employment taxes amounting to

$43.7 billion, were the second

biggest source of revenue . Increased rates for social security

(FICA) taxes and self-employment

(SECA) taxes were in effect for

the full fiscal year. Also, beginning January 1, 1972, the taxable

base for both went up from $7,800

to $9,000 . In addition, as of January 1, 1972, Federal Unemployment Tax Act taxes extended to

almost every employer and the

wage base was up from $3,000 to

$4,200 .

into net Revenue refunds, Including Interest (F

or refunds " by region and district, see table 5. p. 11 4

I;;;"x-__D. craGross Internal Rev . . . . C.II. .ti...

(Dollars In thousands, For details see table 1 . P 102)

1272 1

Sao ..

Grand Intel I

I raconse taxes . total

Corporation

Individual. tot.)

Ill."

unemployment Insurance

Risgrood frartinameard

Estate iind gift txxxm~

Excises bases, total

Alcohol

Tobacco

Othe r

Old-age and disability Insurance, total

Federal insurance contiriburtiamn,

Selfemplayment insurseca contribuWithhold by amPloyere 2

_EWpk;yxmmilUaxes. total

not reported separately from old-age and disability insurance

loss . an waalite, end salaries. Similarly, collections on individual I nourn . to .

not withheld are not reported separately from old-ag e

callaxti .m. 1971 A- at fasrovent

!F --ibo.0 14L647.198-

68 .5 if 131_,072;~7'f -1 _I4311AI-04,_731 1~ .732.357! '

16 .6 30,31 ;J 34 .925,1506 .1 4,605,593 15.2

S1 .9 100,752,421 J ~LoaTT~186 8,126,765 &1

39 .6 76 490 12i--lr__64ZW.X"__ 1 6 .710,M i 8.8

12 -2 2Zir2:293 IL T" _Ln,67 5.8

0 .8 9'918.5 795,3 9.5

19,8 37.902,403 1, 41AI7 .256 3,714,753

M9 35.954,752 39-s".991 3,630,239 .90.1

1

.0 1 11 .947.651 W2.165 84.514 4.3

;1 2

Ccale-clion-s are-adjusted tq exclude amounts transferred to the

Government of Guam . For details see table 1 . p. 102 and footnote,

4 . P . 11 3

2 Estimated .-Coll.ai-s of irdNiclu .1 income to . withhold r.

and disability insurance tax .s on self-employment income . The

amount of old-age and disability insurance tax collections shown

is based on estimates made by the Secretary at the Treasury

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

Act ta .. .. amended, a nd includes all ld .age and disability insurance

. The estimates shown for the 2 classes of individual income

taxes were derived by subtracting the old-age and disability in.

surance tax estimates from the combined totals reported .

Ty" I T..

Total refunds ofinternal reannanue 1 2

Corporation income taxIndividual Income and employment

taxes . total I

Excessive pre"'Ymment income tax 2

Othar sancoars an_ Co ..,= and Fissional . to rIn .

ons ACt taxes

a

Ralinned rartlinarm'"

unemployment insurance

Estate is

Gift is . '

Excise taxes, total

Alcohol

T.be-. ta.. .

Manufacturers'and retailers' excise

taxes . toba l

Gasoline used on farm~s_

Gassaime, nanhighavay

Othe r

At other excise Issue 7

1971 1972

55~.916 .604 55.154.883

264,291 268,SS9

,55,596.555 -54.823,52B

54.285~510 53-203,111 1

1 .263,196 2,543,374

546 458

47 .303 75,880

12.789 IS.346

1 :715 211

1 264 45:3450

8 .918 8_120

Z34 390

4,636 SAM

369 6 2

1, 1 1247

2 -6 3

:78

.97 5

Over the past eight years, amPloyment taxes have soared from

$17 .1 billion to $43 .7 billion In

fiscal year 1972, an increase of

1% percent. During this same

period, employment tax collections replaced corporation income tax as the second highest

source Of revenue, increasing

from 14 .9 percent to 20 .8 percent

of total collections.

Estate and gift tax collections

amounted to $5 .5 billion . Most of

the $1 .7 billion growth from last

year resulted from an administra .

tive speed-up in collections . A

change in the law, effective January 1, 1971, shortened the period

for filing estate tax returns and

remitting Payment from 15 to 9

months .

Refunds Pai d

Although two thirds of the individual taxpayers received refunds

in 1972, the total number of refunds declined slightly . The total

amount of taxes refunded to all

classes of taxpayers was $18 .9

billion, including interest of

Amount rallunded Amount of

(principal and Intemenct Interest Includeid

thousand dollars) (thousand dollars)

1971 2972 1972 1972

19,022,566 18,970,W 132.140 182,76S

.3.622,489 2,894.407 87.111 134,777

15,083,753 14 .SU.417 35,526 38,704

14.207.752 13.750,BU 18,498 16,397

866.701 8",554 16.644 21,930

285 19 56 7

9,014 13'~!= 328 370

52,757 52,702 6,386 5,235

3.234 7,301 399 860

260.333 1.373.322 2.719 3.188

104,911 ioasoIiII1 24 6

1 .566 2.102 (9

1128,51113 2,246.972 437 1,951

82.638 103,619 ---- --------------- ----------

19.275 23.120---- -------------- ------- -

26.670 1,120.233 437 1,95 1

27.476 31.S41 , 25.272 18.217 2.257 2 .23 1

I Figures ave not been nad .cocl to affect reimbursements from and 80 .725 undeliverable checks totaling $14.082,000 in 1972.

the Federal Old-Age and Survivors, Federal Disability, and'Feclenal 3 Includes refunds --not otherwise classified .- Hospital Insurance Trust Funds -ourting to $517 .614,000 in 4 Includes excess FICA cr .dits.

1971 and $447,332,000 in 1972 from the Highway Trust Fund 5 Includes drawbacks and stamp redemptions .

amounting to $122,296,000 in 1971 and $144 .325,000 in 1972 ; 6 Includes lubricating oil used for nonhighway purposes .

a nal from the unemployment Trust Fund amounting to $9 .014,000 7 Includes narcotics, silver, wagering (exci .. and atemp.), capital in 1971 and $13,382,000 in 1972. stock, and other excise tax refunds . 2 Netof 96,148 undeliverable checks totaling $14,547,000 in 1971 - Le,. . then $500 .

74 75

1 5 il 97Z409 1A24A69 -51,660 1 5.3

0~5 1.043,878 IdD72,776 28.B98 2.8

2.6 3784,2W_ -SAII11,969 1,705.686 415.1

8 .0 lKi171.851 16A47,ID36 1 -24,815

70

.1

2.4 4,600 46:it_ '~___5110,001__ - 3M519 6.4

.1 2.206 '685 . 1- Zi4i:i4 t 688

4 9.864,784 :: 1 -335.022 1: -3.4
$182 .8 million . Income tax refunded to corporations declined

$728 million from 1971 . Refunds

to individuals were down slightly,

both in number and size of refund. The average refund was

$251 . While the retroactive repeal of automobile excise taxes

did not greatly increase the number of refunds (because sellers

claimed the refunds and distributed the money to consumers),

it did result in a record amount of

excise tax refunded .

Three New Centers

Constructed

The Internal Revenue Service has

constructed new service centers

in Memphis, Tennessee ; Fresno,

California ; and Brookhaven, New

York to better cope with the burgeoning processing task .

The Memphis Center began processing 1971 individual income tax

returns in January 1972 for taxpayers residing in Kentucky, Tennessee and Virginia . Starting in

January 1973, this center will

process individual business returns from North Carolina, Indiana and West Virginia,

Also, in January 1972, the Fresno

Service Center started processing individual income tax returns

received from the San Francisco

and Honolulu Districts. Individual

returns from the Los Angeles District will be processed in Fresno

starting January 1973 . All other

returns for these three districts

will be processed in Fresno beginning in July 1972.

The Service Center in Brookhaven, N . Y. will start processing

returns for the Brooklyn and Man-

'hattan Districts on July 1, 1972,

and returns for the Newark District in October 1972 .

76

Increase in Returns Filed

One of every three Americans

filed an inconfid tax return in

1972 . Three of every four individuals who filed returns received

refunds.

About one-half million taxpayers

took advantage of the new automatic extension, which postpones

the filing deadline w ithout penalty, provided the request is accompanied by payment of the tax

liability.

Taxpayers filed 112 million returns of all types in 1972 . The

75 .7 million individual income tax

returns accounted for 66 percent

of the total, while the 22 million

employment tax returns accounted for 20 percent of all returns received ,

The following table presents data

on returns filed by type of return

for 1971 and 1972 .

Number of returns filed, by principal type at return

(Figures in thousands . For details, see table 7, p.115)

Type of return 1971 1972

Grand total 111,447 112AN

Income tax, total 87,842 Bugg

Individual and fiduciary, total 76,620 77,106

Individual-citizens and resident aliens, total Al I 75,280 75,684

other individual and fiduciary 1,340 1,422

Declarations I ofestimated tax, total 7,4D8 7,320

ndivid-I 7AGS 7,328

Corporation NA NA

Partivar-hip. 1,052 1,029

Corporations1 .821 Imin

other 942

955

Employment tax, total 21,889 22,0117

Eppplc~a .' Forpt 941 15,757 1 Ovalle

Employers' Form 942 (household ereployess) 3 .854 W 6

Employers' Form 943 lagricultural employees) 501 475

Railroped retirement, Forms CT-1, CT-2 16 15

Unemployment insurance, Form 940 1,761 1,832

Gift tax 165 191

Excise, tax, total 1,401 1,311

occupational tax 701 574

Form

Alcohol 22 250

720 (retailers, manufacturers, etc.) 308 297

Tobacco5

Highway use tax 237 295

Other 127 1"

Service content process a large volume of tax

returns through many operations. Commissioner Johnnie At . Welfare, (. .. too) .views a

data ox acting process during a visit to rhe

Ogden,IUtah ` Service Center. Me Is a,..p.-

med by (I. tor .) Marie Morris, Ogden Somice

Canter; Homer Croa-up, Regional Cannata.

sionor

-

western Region; William1. Groaner,

Jr ., Assistant to the Commissioner (public

Affairs); and Robert H. Terry, Ogden Service

Center Director.

The Service send$ millions of tax packages to

taxpayers In advance at the filing season.

Francis Bronvill, Director at the And.-,

Mass., Service Center check, the automated

Proc wing assembly through which 11 .9 millien Forms 1040 were ..a m .fl .d to taxpayers

throughout Now England and his . Yolk. 7

7

4~
I

:NDIVIDUAL

NCOME TAX RETURNS

ACCOUNTED FOR TWO

OF EVERY THREE RETURNS

RECEIVED IN 1972

Mathematical

Verification by

Computer

Service center computers

checked the mathematics on 72 .5

mi Ilion individual income tax returns in 1972 . Computers delected errors on 2.2 million returns that resulted in $239 million

in additional tax liability . Taxpayers erred against themselves .

on 1 .6 million returns . The Service decreased their reported liability by $119.4 million . The net

yield to the Government from the

validation of individual returns

was $119.6 million or $1 .65 per

return verified .

Increase in Number of Returns Filed

7

Individusi

and fiduciary

Individual income tax retuma, mathematically verified

thoolusuarch, ~ 72,738 - 72A=

Itern 11671 '! _116n ;

Number

Number of returns W Which

*

chant" same made

Ret.- with ImCneable:

Number

Armatunt

Ret- with

Number

A-m.

-Net Yield:

Total

Average per return Verified

78

"rel-ciqlam;

.

LzAlliff]

E] 1 .0

Total

1971-111 .4

1972-112

a ,

D.I.hifi.r. Partnership

0 estimated

,I s

313.052- :1 ~--

thatunbands, 1,742 ~! 1499

thoultuarnddollars 140,M5_~_11119AW

do 1 72,B17 119,5"

6.. 2.37 2.65

do 4,647 .3,762

do ~Z905 2,162

Corporation Ernpi.y.. .1 Excis and

.11 the,

Income Sources Reported on

Magnetic Tape Increases

The Service received almost 380

million information documents

(reporting wages, interest and

dividends) in 1972 . Almost 90 million of these documents were on

magnetic tape which helped reduce the amount of paperwork

processing .

Direct date entry equipment permits Service

perasormal to transcribe Information directly

frem . ter return or Other d.1-11 W. map1*1;1 top* *tin ,., ; going through rho interme.

dirt Cardsa stop of . ring the data on keypunch

The operator pictured above can too

on a a video tube the data transcribed So that H

mistake Is made It can be Immediately

C - - -led .

INFORMATION DOCUMENTS REPORTED ON MAGNETIC TAPE

T"Year

1966

1967

1968

1959

1970

1971

Rarporth,

Documents (Thard" .011) Entities

26,248 591

36,492

1 .

47,686 2,426 048

58,951 2,963

68,300 4,637

aq,162 6,583

Information documents reported on magnetic top.

79
OrganizationPrincipal

Officers

Organization of the

Internal Revenue Service

Internal Revenue

Regions and Districts

Principal Officers

Histo rica l

List of Commissioners

81
INTERNAL REVENUE SERVICE ORGANIZATION

U .S. TREASURY DEPARTMENT

INTERNAL REVENUE I SERVICE

TAXADMINISTRAXION

ADVISORY STAFF

ASSISTANT

COMMISSIONER

0~,-d-)

DIVISIONS

FadEU a

NI.-I

Fla-I

OM",

IRS

CREGIONAL INSPECTORS

17)

I

DIVISIONS

In-A1-1sa-ft

COMMISSIONER

Dep,rty ComffiWaASSISTANT

COMMISSIONER

(Amm,ft, Collection

and Ta,payw SeA,e; '

A.-- -

C._~I . C__)

DIVISIONS

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

ASSISTANTTOTHE COMMISSIONER

(P,b*c Affalm )

REGIONAL COMMISSIONERS

17 )

AS 1STANT REGIONAL

COMMISSIONERS

DIVISIONS

Admimis-ft.

T-. ..

Fka.-

AEW 1.

A~I

C

S AVICECENTERS

11.1

DIVISIONS

Arn.Apl

Ad-.~~

0 .. C.-

T-S~.

Internal Revenue Service

7 Regions 58 Districts

District Dia-

(58)

: hIlb*Jd It-A.,7

'Eald lavalf fralm, (walkil 1 . C)

ll Okittla

:14mid Okla .

."

. cma,

btilail Cal Cain (Katimbal, W. 11)

DIVISIONS

T . .

DIVISIONS

C-.-

GENERALCOUNSEL

11 CIE1 COUNSE L

Da,,AII, CNefC-1

C-c-

-CNaICIT - 1

VISIONS

la=.

I0--

REGIONAL COUNSELS

(7)

ACTIVITIES

Al....

T--

Enf--

GL~ET .,.,CField

Office

Far6gn Pots,

ON" Of

latewflonal

Operatims;

BONN

LONDON

MANILA

MEXICO CITY

OTTAWA

PARIS

ROME

SAIGON

SAO PAULO

TOKYO
I

Principal Officers of the

Internal Revenue Servic e

As of June 30,1972

National Officers

Office of the Commissioner

Commissioner

Johnnie M . Walter s

Deputy Commissioner

Raymond F . Harless

Assistant to the Commissioner

Edwin M . Perkins

Assistant to the Commissioner

Roger V. Bart h

Assistant to the Commissioner

(Public Affairs)

William I . Greener, Jr.

Assistant to the Deputy

Commissione r

Donald C . Dawkins

Chairman, Tax Forms

Coordinating Committee

James N . Kinse l

Director, Tax Administration

AdvisoryStaff

Joseph R. Harmon

Administration

Acting Assistant Commissioner

Alvin M . Kelley

Director, Program Staff

Julius H . Lauderdal e

Division Directors :

Facilities Management

Leo C . Inglesby

Fiscal Management

Alan A. Beek

Personnel

Albert J . Schaffer

Training (Acting)

James R . Stone

Equal Employment Opportunity

Office r

Philip N. Sansotta

84

Compliance

Assistant Commissioner

John F. Hanlon

Deputy Assistant Commi.ssi.oner

(Acting)

Joseph G . McGowan

Division Directors :

Alcohol, Tobacco, an d

Firearms

Rex D . Davis

Appellate

Arthur H . Klotz

Audit

Singleton B . Wolfe

Intelligence

Robert K . Lun d

Office of International

Operations

Clarence 1 . Fox

Accounts, Colleclions an d

Taxpayer Service

Assistant Commissioner

Dean J . Barron

Deputy Assistant Commissioner

Gerald G . Portney

Division Directors :

Collection Division

Harold E . Snyder

Taxpayer Service

William F . Culliney

Accounts and Data

Processing

Donald G . Elsberry

IRS Data Center, Detroit,

Mich,

Ernest Shaw

National Computer Center,

Martinsburg, W. Va .

Eddie Heironimu s

Inspection

Assistant Commissioner (Acting)

Francis 1 . Geibel

Division Directors :

Internal Audit (Acting)

William C . Rankin

Internal Security

Raymond N . K iely

Planning and Research

Assistant Commissioner (Acting)

James R . Turne r

Division Directors :

Planning and Analysis

Ramon L. Ray

Research (Acting)

Claude D . Baldwin

Statistics

Vito Natrell a

Systems Development

Lancelot W . Armstrong

Office of Industrial

Economics (Acting)

Seymour Fiekowsky

Technica l

Assistant Commissioner

Peter P. Weidenbruch, Jr .

Deputy Assistant Commissioner

Richard J . Stakem

Division Directors :

Income Tax

John W. S . Littleton

Miscellaneous and Special

Provisions Tax

LinderHamblen

Technical Publications and

Services (Acting)

Roy J . Linger

Economic Stabilizatio n

Acting Assistant Commissioner

Edward F . Preston

Division Directors:

Technical Programs

William H . Connett

Service and Compliance

Stanley Goldberg

Program Analysis

William Daniel

Office of Chief Counsel

Chief Counse l

Lee H. Henke l

Technical Advisor to Chief

Counse l

Robert B . Jacoby

Special Assistant to Chief

Counsel (Vacant)

Special Assistant to Chief

Counsel

Lester Stein

Associate Chief Counsel

(Litigation)

John T . Roger s

Division Directors :

Alcohol, Tobacco, and

Firearms (Legal )

Matthew J . Werneth

General Litigatio n

J . Walter Feigenbaum

Enforcement (Acting)

Albert L. Henkle

Refund Litigation

John W . Hol t

Tax Court Litigation

Robert A . Bridges

Associate Chief Counsel

(Technical)

Richard M . Hah n

Special Assistant to Chief

Counsel

Arthur B . White

Division Directors :

Interpretative

John L . Withers

Legislation and Regulations

James F . Drin g

Operations and Planning

William P. Crewe

496-192 0 - 73 - 7

All Regional Offices at 550 Main

Street, Cincinnati, Ohio 45202,

unless a different address is indicated .

Regional Commissioner

Charles G . Keebler

Assistant Regional

Commissioners:

Administration

ArthurJ . Collinson

Alcohol, Tobacco, and

Firearms

Fred Murrell

Apellate

W . Franklin Hammack

Audit

Michael A . DeGuire

Accounts, Collection &

Taxpayer Servic e

Wayne S . Kegerreis

Intelligence

Harold B . Holt

Stabilization

Edgar H . Hughso n

District Directors :

Cincinnati, Ohio 45202

Paul A. Schuster

Cleveland, Ohio 44199

Frank S . Turbett, Jr.

Detroit, Mich. 48226

Thomas A . Cardoza

Indianapolis, Ind . 46204

James E . Daly

Louisville, Ky . 40202

Robert J . Oath

Parkersburg, W . Va . 26101

H . Daniels Jones

Director, Central Service Center,

Covington, KY. 47U1 &

Patrick J. Ruttle

Regional Counsel

Clarence E . Price

Regional Inspector

Edward A . Conroy

Mid-Atlantic Region

All Reg ion_aT_61I-icW at 2 Penn

Center Plaza, Philadelphia, Pa.

19102, unless a different address is indicate d

Regional Commissioner

Edward J. Fitzgerald

Assistant Regiona l

Commissioners:

Administration

Americo P . Attorri

Alcohol, Tobacco, an d

Firearms

Edward J . Fox

Apellato

Victor Cuniglio

Audit

Dwight L . James

Accounts, Collection &

Taxpayer Servic e

Anthony L . Carrea

Intelligence

Amerigo R . Manzi

Stabilization

Edward J . Mannin g

District Directors:

Baltimore, Md. 21201

Irving Machiz

Newark, N .J. 07102

Roland H . Nash, Jr.

Philadelphia, Pa . 19108

Alfred L. Whinston

Pittsburgh, Pa . 15222

H . Alan Long

Richmond, Va . 23240

James P . Boyle

Wilmington, Del . 19801

Charles 0 . DeWitt

Director Mid-Atlantic Service

Center, Philadelphia, Pa . 19155

Norman E . Morrill

Regional Counsel

Emory L. Langdo n

Regional Inspector, Bankers Securities Building, Walnut and

Juniper Streets, Philadelphia,

Pa. 1901 7

Emanuel L . Schuster

85
11

il

Southeast Region

All Regional Offices at 275 Peachtree Street, N .E., Atlanta, Ga .

30303, unless a different address is indicated .

Regional Commissioner

William J . Bookholt

Assistant Regional

Commissioners:

Administration

Richard C. McCullough

Alcohol, Tobacco, and

Fireram s

William N . Griffin

Appellate

Vance N . Bates

Audit

Harold B. Bindseil

Accounts, Collection &

Taxpayer Servic e

James G . Martin, Jr.

Intelligence

Edmund J . Vitkus

Stabilization

Richard C . Lewi s

District Directors:

Atlanta, Ga . 30303

Walter T . Coppinger

Birmingham, Ala. 35203

Dwight T. Baptist

Columbia, S .C . 29201

Harold M . McLeod

Greensboro, N .C . 27401

John E. Wall

Jackson, Miss. 39202

John W. Henderson

Jacksonville, Fla. 32202

Andrew J . O'Donnell, Jr .

Nashville, Tenn. 37203

James A . O'Har a

Director, Southeast Service Center, Chamblee, Ga . 30006

Donald H . Hollums

Memphis, Tenn . 38130

Claude A . Kyl e

Regional Counsel

Henry C . Stockell, Jr .

Regional Inspector

Delmar L. Janney

Southwest Region

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

75202, unless a different address is indicated .

Regional Commissioner

Albert W. Brabin

Assistant Regional

Commissioners :

Administration

George E . Andreason

Alcohol, Tobacco, and

Firearm s

Billy L . Gaunt

Appellate

Roydell S . Rosfeld

Audit

Howard C . Longley

Accounts, Collection &

Taxpayer Servic e

George M. Oliver

Intelligence

Robert D . Elledge

Stabilization

Alfred N . Kay

District Directors :

Albuquerque, N. Max . 87101

Maurice E . Johnson

Austin, Tex . 78701

R. L. Phinney

Cheyenne, Wyo . 82001

T . Blair Evan s

Dallas, Tex. 75202

(Vacant)

Denver, Colo. 80202

Arthur A . Kennedy

Little Rock, Ark. 72203

Emmett E. Cook, Jr.

New Orleans, Le . 70130

Carl R . Gromatzky

Oklahoma City, Okla. 73102

Clyde L . Bickerstaff

Wichita, Kans. 67202

(Vacant)

Director, Sauthwe I S ' C

ter, Austin, Tex, 78'176- L '~iervlce (;an -

Ervin B. Osbor n

Regional Counsel, 1025 Elm

Street, Dallas, Tex. 75202

William B . Riley

Regional Inspector (Acting), 1511

Bryan Street, Dallas, Tex . 75201

Paul F. Kearns

Midwest Region

All Regional Offices at 35 East

Wacker Drive, Chicago, Ill.

60601, unless a different address is indicated .

Regional Commissioner

Edwin P. Trainor

Assistant Regional

Commissioners :

Administration

Roy D . Clar k

Alcohol, Tobacco, and

Firearms

Cecil M . Wolfe

Appellate

(Vacant)

Audit

John H . Rauen, Jr .

Accounts, Collection &

Taxpayer Service

Donald J . Porter

Intelligence

John J . Olszewski

Stabilization (Acting)

Richard C . Voskul l

District Directors :

Aberdeen, S . Dak . 57401

John B. Langer

Chicago, Ill . 60602

RogerC .Beck

Des Moines, Iowa 50309

Herbert B . Mosher

Fargo, N . Dak. 58102

Frederick G . Kniskem

Milwaukee, Wis. 53202

WalterS. Stumpf

Omaha, Nebr . 68102

Richard P. Vina l

St. Louis, Mo . 63101

Eugene C . Coyl e

St. Paul, Minn . 55101

George 0 . Lethert

Springfield, 111 . 62704

Jay G . PhiI pott

Director, Midwest Servic

Kansas UiTy-,Mo . 64170---

Arnold S . Dreye r

Regional Counsel

Frank C . Conley

Regional Inspector

William E. Mulroy

North-Atlantic Regio n

All Regional Offices at 90 Church

Street, New York, N .Y . 10007,

unless a different address is indicated .

Regional Commissioner

John J . Flyn n

Assistant Regional

Commissioners:

Administration

Harry J . Bodkin

Alcohol, Tobacco, an d

Firearms

John L . Piper

Appellate

Theodore C . Rademaker

Audi t

William M . Wolf

Accounts, Collection &

Taxpayer Service

Marshall P. Cappelli

Intelligence

Howard F. McHenry

Stabilization

Raymond 1 . Maile r

District Directors :

Albany, N .Y. 12206

Donald T. Hartley

Augusta, Maine 04330

Whitney L . Wheeler

Boston, Mass . 02203

William E . Williams

Brooklyn, N .Y. 11201

Elmer H . Klinsman

Buffalo, N .Y . 14202

John E. Foley

Burlington, Vt. 05401

Fulton D . Fields

Hartford, Conn . 06103

Joseph J . Conley, Jr.

Manhattan, N .Y. 10007

Elliott H . Gray

Portsmouth, N.H. 03801

Frank W . Murphy

Providence, R.I . 02903

John J . O'Brie n

Director, North-Atlantic Service

Center Andover, Mass. 01802

Francis L . Browitt

Director, North-Atlantic Service

Center, Brookhaven, N.Y. 11716

Earl L . Torgerso n

Regional Counsel, 26 Federal

Plaza, New York, N.Y . 10007

Marvin E. Hage n

Regional Inspector, 26 Federal

Plaza, New York, N .Y . 10007

Sidney M . Wolk

Western Regio n

All Regional Offices at 870 Market

Street, San Francisco, Calif .

94102, unless a different address is indicated .

Regional Commissioner

Homer 0. Croasmun

Assistant Regional

Commissioners :

Administration (Acting)

Warren S . DeWeese

Alcohol, Tobacco, and

Firearms

Brenton G . Thorne

Appellate

Wallace J . Spencer, Jr.

Audit

George S . Heard

Accounts, Collection &

Taxpayer Service

Charles D . Moran

Intelligence

Herman F. Kuehl

Stabilization

Joseph T. Davis

District Directors:

Anchorage, Alaska 99501

(Vacant )

Boise, Idaho 83707

Calvin E. Wright

Helena, Mont . 59601

Nelson L . Seeley

Honolulu, Hawaii 96813

Robert M . Cutt s

Los Angeles, Calif . 90012

Frank S . Schmidt

Phoenix, Ariz . 85025

Alden W . McCanless

Portland, Ore . 97204

Ralph B . Short

Reno, Nevada 89502

Warren A. Bate s

Salt Lake City, Utah 841 10

Roland V. Wise

San Francisco, Calif . 94102

(Vacant)

Seattle, Wash . 98121

(Vacant)

Director, Western Service Center,

Ogden, Utah 84405

Robert H. Terr y

Director, Western Service Center,

Fresno, Calif . 93730

Leonard E. Semrick

Regional Counsel, 447 Sutter

Street, San Francisco, Calif.

94108

Richard C . Schwart z

Regional Inspector, 1076 Mission

Street, San Francisco, Calif.

94103

Frederick R . Rowe, Jr .

86 87
Historical List of

Commissioners

of Internal Revenue

Office,,:1 Commissioner of Internal Reve.

true led 1862 by Act of Congress, July 1,

In addition, the following were Acting

Commissioners during Periods Of time

when there was no Commissioner holding

the office : John W. Douglas,, of Pennsyl .

vania, from Nov. 1 . 1870 ' to Jan. 2, 1871 ;

HenryC. Rogers,

of

Pennsylvania, from

MeI to May I 18B , and from MayI

to y uno 4

,

1907 ;0~ohnJ. Knox, of Minne .

sota, from May 11 to May 20, 1883; Robert

Wi Illarns, Jr., of Ohio, from Nov . 28 to

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

tucky fromAr. 12 to May 26, 1921 ; H . F.

Mires : of Wap~hingl .n,y from Aug 16 to

Aug. 19, 1930 ; Press R . Bald r ~dge: of

Iowa, from May

16 1 . Jun

. 5, 1933 ;

HaroldN.

Groves' 0' 11 1

inois, from Jan. 23

to Feb. 29, 1944 ; JohnS. Grah .rn, of

North Carolina, from Nov . 19, 1952,

Jan . to

19, 1953;

Justin F . Winkle, of Now

York, from Jan. 20 to Feb . 3, 1953 ; 0. Gordon Del of Virginia, from Nov. I

to Dec. 4, 195s' : and from Get . I to Nov . 4

' 1958;

Charles1. Fox, of Utah, from

Jan . 2

1

to Feb. 6, 1961 ; Bertrand M .

Herding, of Texas, from July 11, 1964 to

Jan . 24 : 1911;,and William

.. smilh of

Virgin is

from

an

. 21 to Mar. 31, 1969 ;

Harold T . S"r" of Indian ., from Jun

.

23, 1971 to Aug. 5, 1971.

George

S . Boutwell

Massachusetts

July 17,1862/Mar. 4,1863

JosephJ . Lewis

Pennsylvania

Mar . 18,1863/June 30,1865

William Orion

New York

July 1, 1865/Oct . 31,1865

EdwardA. Rollins

New Hampshire

Nov. 1, 1865/Mar. 10, 1869

Columbus Delano

Ohio

Mar. 11, 1869/Oct. 31,1870

Alfred Pleasonton

New York

Jan . 3,1871 /Aug. 8,1871

John W . Douglass

Pennsylvania

Aug . 9,1871 /May 14,1875

Daniel0 . Pratt

Indiana

May 15,1875/July 31,1876

Green B. Raum

Illinois

Aug . 2,1876/Apr. 30,1883

Walter Evans

Kentucky

May 21,1883/Mar. 19,1885

JosephS. Miller

West Virginia

Mar. 20,1885/Mar . 20,1889

John W. Mason

West Virginia

Mar. 21,1889/Apr. 18,1893

JosephS. Miller

West Virginia

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

Illinois

Nov . 27,1896/Dec . 31, 1897

Nathan B. Scott

West Virginia

Jan . 1, 1898/ Feb . 28,1899

George W. Wilson

Ohio

Mar. 1, 1899/Nov. 27,1900

John W. Yerkes

Kentucky

Dec . 20,1900/Apt. 30,1907

JohnG . Capers

South Carolina

June 5,1907/Aug. 31,1909

RoyalE. Cabel l

Virginia

Sept . 1, 1909/Apr. 27,1913

William H. Osborn

North Carolina

Apr. 28, 1913/Sept . 25, 1917

DanielC . Roper

South Carolina

Sept. 26,1917/Mar. 31,1920

WilliamM . Williams

Alabama

Apr. 1, 1920/Apr . 11, 1921

David H . Blair

North Carolina

May 27,1921 /May 31,1929

Robert H. Lucas

Kentucky

June 1, 1929/Aug. 15,1930

David Burnet

Ohio

Aug . 20,1930/ May 15,1933

Guy T. Helevering

Kansas

June 6,1933/Oct. Il, 1943

RobertE . Hannegan

Missouri

Oct . 9, 1943/Jan . 22,1944

JosephD . Nunan, Jr.

New York

Mar . 1, 1944/June 30,1947

GeorgeJ . Schoeneman

Rhode Island

July 1, 1947/July 31,1951

John B . Dunlap

Texas

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

Virginia

Feb . 4,1953/Oct. 31,1955

RussellC. Harrington

Rhode Island

Dec. 5,1955/Sept. 30,1958

Dana Latham

California

Nov . 5,1958/Jan . 20,1961

Mortimer M. Caplin

Virginia

Feb . 7,1961 /July 10, 1964

SheldonS. Cohen

Maryland

Jan.25,1965/Jan .20,1969

Randolph W. Thrower

Georgia

Apr. 1, 1969/June 22,1971

Johnnie M . Walters

South Carolina

Aug . 6,1971

Appendix

Taxpayer

Publications

Tax Forms

Activity

Supreme Court

Decisions

Actions of

Lower Courts

Tax Legislation

Enacted

Tax Legislation

Pending

88 89
1!;

Publication Number/

Title

90

17

Your Federal Income Tax .

Price 750

54

Tax Guide forU .S . Citizens

Abroad

76

Law and Regulations relating to

the treatment of Annuities for

Income Tax purposes . Price 450

(revised 5-69)

225

Farmer's Tax Guide

33

4

Tax Guide for Small Business .

Price 750

337

Law and Regulations Relating to

Employee Pension, Annuity,

Profit-Sharing, Stock Bonus, and

Bond Purchase Plans including

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

349 .

Federal Use Tax on Trucks,

Truck-Tractors and Buses

377

Pension Trust Procedures and

Guides for Qualification Under

Section 401 (a) and 405(a) of the

Internal Revenue Code of 1954 .

Price 350

378

Federal Fuel Tax Credit or Refund

for Nonhighway and Transit Users

44

8

A Guide to Federal Estate and

Gift Taxation . Price 500

(revised 7-71)

463

Travel, Entertainment and Gift

Expenses

501

YourExemptions and Exemptions

for Dependents

502

Deduction for Medical and

Dental Expenses

503

Child Care and Disabled

Dependent Care

504

Income Tax Deductions for

Alimony Payments

505

Tax Withholding and Declaration

of Estimated Ta

x

506

Computing Your Tax Under the

Income Averaging Method

508

Tax Information on Educational

Expenses

509

Tax Calendar and Check List

forI972

5110

Information on Excise Taxes for

1972

511

Sales and Other Dispositions of

Depreciable Property

512

Credit Sales by Dealers in

Personal Property

513

Tax Information for Visitors to the

United States

514

Foreign Tax Credit forU .S .

Citizens and Resident Aliens

SIS

Withholding of Tax on

Nonresident Aliens and

Foreign Corporations

SIB

Tax Information forU.S .

Government Civilian Employees

Stationed Abroad

517

Social Security forCiergymen

and Religious Workers

SIB

Foreign Scholars and Educational

and Cultural Exchange Visitors

519

United States Tax Guide for

Aliens

S20

Tax Information for American

Scholars in the

U.S . and Abroad

521

Tax Information on Moving

Expenses

522

Adjustments to Income for

Sick Pay

523

Tax Information on Selling

Your Home

524

Retirement Income and

Retirement Income Credit

525

Taxable Income and Nontaxable

Income

526

Income Tax Deduction for

Contributions

527

Rental Income and Royalty

Income

528

Information on Filing Your Tax

Return

529

Other Miscellaneous Deductions

530

Tax Information on Deductions

for Homeowners

531

Reporting Your Tips for Federal

Tax Purposes

532

Tax Information for Students

and Parents

533

Information on Self-Employment

Tax

534

Depreciation, Amortization, and

Depletion (Includes Class Life

Asset Depreciation Range

System)

535

Tax Information on Business

Expenses

536

Losses From Operating a

Business

537

Installment and DeferredPayment Sale s

538

Tax Information on Accounting

Periods and Methods

539

Withholding Taxes From Your

Employee's Wages

540

Tax Information on Repairs,

Replacements, and Improvements

541

Tax Information on Partnership

Income and Losses

542

Corporations and the Federal

Income Tax

543

Tax Information on the Sale of

a Business

544

Sales and Exchanges of Assets

545

Income Tax Deduction for

Interest Expense

546

Income Tax Deduction for Taxe

s

547

Tax Information on Disasters

Casualty Losses, and Thefts

548

Tax Information on Deduction

for Bad Debts

549

Condemnations of Private

Property for Public Use

550

Tax Information on Investment

Income and Expenses

551

Tax Information on cost or

Other Basis of Assets

552

Recordkeeping Requirements

and a Guide to Tax Publications

553

Highlights of 1971 Changes in

the Tax Law

554

Tax Benefits for Older Americans

555

Community Property and the

Federal Income Tax

556

Audit of Returns, Appeal Rights

and Claims for Refund

557

How to Apply for Recognition of

Exemption for an Organization

558

Tax Information for Sponsors of

Contests and Sporting Events

559

Federal Tax Guide for Survivors,

Executors, and Administrators

560

Retirement Plans for SelfEmployed Individual s

561

Valuation of Donated Property

563

Tax Return Filing Requirements

forU .S. Citizens Abroa

d

564

Tax Information on Mutual Fund

Distributions

565

Tax Information on the Interest

Equalization Tax

566

Questions and Answers on

Retirement Plans for the

Self-Employed

567

Tax Advice on Civil Service

Disability Retirement Payments

568

Federal Tax Information for Civil

Service Retirees

569

Questions Asked by U .S.

Taxpayers Abroad

570

Tax Guide forU .S . Citizens

Employed inU .S. Possessions

571

Tax-Sheltered Annuity Plans for

Employees of Public Schools

and Certain Tax-Exempt

Organizations

572

Tax Information on Investment

Credit

573

Interest Equalization Tax

Highlights

575

Tax Information on Pensions and

Annuities

576

Tax Information on United States

Savings Bonds

91

k_ -
I11

ill

577

Amortization of Pollution Control

Facilities

579

Informacl6n sobre la Preparc16n y Presentaci6n de Is Declarci6n

del Impuesto Federal sobfe

Ingreso Individua l

721

Comprehensive Tax Guide toU.S .

Civil Service Retirement Benefits.

Price 700

778

Guides for Qualification of

Pension, Profit-Sharing, and

Stock Bonus Plans . Price 350

92

Tax Forms Activity

The following new forms

were issued ;

Number/Title

990-ScheduleA

Organizations Exempt Under

501(c)(3) Supplementary

Information .

990-ScheduleB

Exempt Private Foundations

(Defined in Section 509(a) and

Exempt Under Section 501 (a)

Determination of Liability for

Chapter 42 Taxes .

1041-Schedule PF

Determination of Liability for

Chapter 42 Tax Trusts Described

in Section 4947(a)

1099-DIV U .S . Information Return for

Recipients of Dividends and

Distributions

1099-INT U .S . Information Return for

Recipients of Interest Income

1099-MISC

U .S . Information Return for

Recipients of Miscellaneous

Income

4782

Employee Moving Expense

Information

4789

Currency Transaction Report

4790

Report of International

Transportation of Currency or

Monetary Instruments

4797

Supplemental Schedule of Gains

and Losses

4831

Rental Incom

e

4832

Asset Depreciation Range

4835

Farm Rental Income (crop share)

and Expenses

4848

Annual Employer's Return for

Employees' Pension or ProfitSharing Plan

4848-SchoduleA

Annual Status Report of an

Employees' Pension or ProfitSharing Plan

4849

Financial Statement of

Employees' Pension or ProfitSharing Fund or Fiduciary

Account

4868

Application for Automatic

Extension of Time to File I U .S.

ndividual Income Tax Return

4876

Election to be Treated as a DISC

4908

Declaration of a Candidate for

Public Office Receiving Political

Contributions Qualifying for

Credit or Deduction

4909

Declaration of Campaign

Committee Receiving Political

Contributions Qualifying for

Credit or Deduction .

The following forms were

eliminated :

W-"cheduleA

Additional Withholding

Allowances Based on

Itemized Deductions

1001

Ownership Certificate

1001-A

Ownership Certificate-Austria

1001-B

Exemption or Reduced Rate

Certificate-Belgium

11001AB

Exemption or Reduced Rate

Certificate-Belgium

1001-C

Ownership Certificate-Canada

1001AC

Exemption or Reduced Rate

Certificate-Canada

1001-D

Ownership Certificate-Denmark

1001AD

Exemption Certif! cate-Den mark

1001-FIN

Ownership Certificate-Finland

1001-GER

Ownership Certificate--Germany

1001-F

Ownership Certificate--France

1001-G

Ownership Certificate-Greece

1001-IR

Ownership Certificate-[ reland

110011-i

Ownership Certificate--Japan

1001AJ

Reduced Rate Certificate-Japan

1001-L

Ownership CertificateLuxembourg

1001-N

Ownership CertificateNetherland s

10OIA-N

Exemption CertificateNetherlands

1001-NA

Ownership CertificateNetherlands Antilles

1001-NO

Ownership Certificate--Norway

1001-SWED

Ownership Certificate-Sweden

1001-S

Ownership CertificateSwitzerland

1001A-S

Exemption or Reduced Rate

Certificate-Switzerland

1001-UK

Ownership Certificate-Malawi,

Zambia, and Southern Rhodesia

1001-UK2

Ownership Certificate--United

Kingdom

1099 U. S . Information Return

1099M

U. S. Information Return for

Regulated Investment Company

Distributions

Stabilization Forms

Activity

Number/Title

S-7

Alleged Violation Report

S-11 6 (Rev. 2-72)

Application for Exemption or

Exception

S-18

Notice (of Appeal Rights)

S-21 (Rev. 4-72)

Affidavit

S-29 (Rev. 2-72)

Acknowledgement and Referral

Postcard

S-41

Notice of Violation

S-53

Noninstitutional (individual)

Health Services Providers

Supplemental Worksheet

S-55

Subpoena

S-70

Lease Notification Addendum

Public Use Publications

Distributed

Publication Number/Title

S2

General information, Economic

Stabilization Program

S-3 (Rev. 3-72)

Posting Requirements for

Retailers

S-5

Price and Wage Classification

S-6

Record Keeping for ESP

S-3001 (Rev.)

Offices Providing Economic

Stabilization Information

S-3004

Information for Retailers and

Wholesalers

S-3007 (Rev. )

Items Not Controlled by ESP

S-3008 (Rev. )

Enforcement Provisions of ESP

S-3009

IRS Stabilization Rulings

Determinations-Appeal

Procedures

S-3010

Posting Requirements for

Prescription Druggists

S-3011 (Rev.)

Legal Price Increases

S-3012

Construction Industry

S-3013

Retroactive Pay

S-3015

Doctors and Dentists Flyer

S-3016

Wearing Apparel Price Controls

S-3017

Service Organizations

S-3019

Rent Guidelines

S-3020 (Rev .)

How to Compute Productivity

Gains

S-3021

Price Controls on Retailers

93
S-3022

Dividends and Interest

S-3023

Price Controls on Wearing

Appare l

S-3024

Violations of Economic

Stabilization Records

S-3025

Rent Controlled Housing

S-3026

Rent Violations (Consumer

Information Series)

S-302 9

Executive and Variable

Compensation

S-303 0

Appeal Procedures, Policy Bodies

S-3031

Restaurants and Carryouts

(Consumer Information Series )

S-3033

Term Limit Pricing

Supreme Court Decisions

Criminal Case s

On December 20, 1971, the Supreme Court in United States v .

Bass, 404 U .S . 336 (1971), in a

five to two decision rejected the

position taken by the preponderance of the circuits which had

considered the issue and held

Title VII of the Omnibus Crime

Control and Safe Streets Act of

1968 (18 U .S .C . App . § 1202(a)(1))

does not make It a crime for a

convicted felon merely to "possess" a firearm . The court said

that the statute requires the government to allege and prove in

each case involving unlawful "receipt", "possession", or "transportation" that such "receipt",

"possession", or "transportation"

was "in commerce or affecting

commerce" . The court came to

this conclusion due to the ambiguity of the statute and the lack

of conclusive legislative intent

and resolved the ambiguity of the

criminal statute in favor of the

narrower construction taken by

the Second Circuit (United States

v. Bass, 434 F. 2d 1269 (2nd Cir.

1970)).

However, the court pointed out

that the nexus with interstate

commerce could be established

in a number of ways saying "we

note only some of these . For example, a person possesses . . .

in commerce or affecting commerce if at the time of the offense the gun was moving interstate or on an interstate facility,

or if the possession affects commerce . Significantly broader in

reach, however, is the offense of

receiving in commerce or affecting commerce, for we conclude

that the Government meets its

burden here If it demonstrates

that the firearm received has previously traveled in interstate commerce" . However, presumably in

the case of a "receipt" charge

the person charged with the offense would have to be shown to

have received the firearm after

the date of enactment of the law

(June 19, 1968). Since almost all

of the Title VII charges brought

prior to the Supreme Court's decision in Bass did not allege the

commerce element many cases

are being reversed and remanded . See United States v .

Harp., 454 F. 2d 1161 (5th Cir.

1972) ; United States v. Young,

454 F . 2d 1168 (9th Cir. 1972) ;

and United 9tates v . Harris, 456

F . 2d 62 (8th Cir. 1972) .

On May 15, 1972 the Supreme

Court in United States v. Biswell,

406 U .S . 311 (1972) 40 L W 4489,

by an eight to one vote, upheld the conviction of a federally

licensed firearms dealer who reluctantly permitted inspection of

his locked firearms storeroom

only after being advised that such

inspection was authorized by 18

U .S .C. 923(g) and being shown a

copy of the law . The Supreme

Court reversed the decision of

the Tenth Circuit (United States

v. Biswell, 442 F . 2d 1189 (10th

Cir. 1971)) which had held that

Biswell did not "consent" to the

entry of the locked storeroom,

and that if the statute were construed as permitting entry without

such "consent" that It violated

the Fourth Amendment prohibition against "Unreasonable"

search and seizures . The Supreme Court did not hold that

Biswelf gave "consent" but rather

that there was on his part a "a

submission to lawful authority"

rather than face a possible criminal prosecution (or administrative action with respect to his

license) .

The court said "in the context of

a regulatory inspection system of

business premises which is carefully limited in time, place, and

scope, the legality of the search

depends not on consent but on

the authority of a valid statute."

The court recognized as to firearms that "close scrutiny of this

traffic is undeniably of central

importance in federal efforts to

prevent violent crime and to assist the states in regulating the

firearms traffic within their borders." The court said "large interests are at stake, and inspeclion is a crucial part of the regulatory scheme, since it assures

that weapons are distributed

through regular channels and in

a traceable manner and makes

possible the prevention of sales

to undesirable customers and the

detection of the origin of particular firearms". The court explaiDed that in See v . City of

Seattle, 387 U .S . 541 (1967), they

had no occasion to consider the

reach of the Fourth Amendment

with respect to various federal

regulatory statutes .

The court distinguished Colonade

Catering Corp v . United States,

397 U .S. 72 (1970), a retail liquor

dealer case where the statutory

authority to enter and inspect

was similar to the statutory authority in Biswell, on the grounds

that there was no forcible entry

in Biswell. In Colonade the court

said the statute had not authorized forcible entry. The court said

as to federally licensed firearms

dealers "if the inspection is to be

effective and serve as a credible

deterrent, unannounced, even

frequent, inspections are essential . In this context, the prerequisite of a warrant could easily

frustrate inspection ; and If the

necessary flexibility as to time,

scope and frequency is to be

preserved, the protections afforded by a warrant would be

negligible." The court also noted

that "when a dealer chooses to

engage in this pervasively regulated business and to accept a

federal license, he does so with

the knowledge that his business

records, firearms and ammunition

will be subject to effective inspection ." The court further held

that the seizure of the two contraband National Firearms Act

weapons discovered in the

course of the inspection was not

unreasonable under the Fourth

Amendment.

In Kastigar v . United States, 406

U .S, 441 (1972), the Supreme

Court .upheld the constitutionality

of those portions of the Organized Crime Control Act of 1970,

18 U .S.C. § 6002, empowering the

Federal Government to compel

testimony from a witness involving the Fifth Amendment by conferring immunity from use of the

compelled testimony or use of

evidence derived therefrom criminal proceedings are subsequently instituted against such a

witness, the Court further held,

the Government has the burden

of providing affirmatively that evidence proposed to be used is

derived from a legitimate source

wholly independent of the compelled testimony.

The appellees in United States v .

Marion 404 U.S, 307 (1971),

claime~ that the Government had

known of the crimes with which

they were charged, the circumstances of the crimes, and appellees' identities for over three

years before they were indicted

and at their trial successfully

moved to dismiss on the ground

that the delay in returning the indictment deprived them of their

right to a-speedy trial as secured

by the Sixth Amendment . The Supreme Court reversed the trial

court's dismissal and held that

.

. . the Sixth Amendment

speedy trial provision has no application until the putative dedendant in some way becomes

an 'accused' . . ." The Court defined "accused," for purposes of

the Sixth Amendment, as one

against whom there is either a

formal indictment or an informatiOn, or one who is actually restrained by being arrested or

otherwise held to answer a criminal charge . However, the Court

stated that "the Due Process

Clause of the Fifth Amendment

would require dismissal of the

indictment If it were shown at

trial that the pre-indictment delay . . . caused substantial prejudice to (the accused's) rights to

a fair trial and that the delay was

an intentional device to gain

tactical advantage over the accused ."

In Barker v . Wingo, 407 U .S . 514

(1972), the Court further clarified

the right to a speedy trial by

holding that alleged denials of

the right can only be determined

by an ad hoc balancing test

rather than by any inflexible time

standard . In striking the balance,

the Court stated, the factors to be

weighed include the length of

delay between arrest and trial,

justification for the delay, the defendant's assertion of or failure

to assert his right to speedy trial,

and prejudice to the defendant

caused by oppressive pretrial

incarceration, impairment of his

defense, and pretrial anxiety and

obloquy .

94 95
Supreme Court

Civil Case s

In Commissioner v. First Security Bank of Utah, 405 U .S . 394

(1972), aff'g 436 F .2d 1192 (10th

Cir. 1971), the Supreme Court

disapproved an allocation under

section 482 that would have constituted income received in violation of Federal banking laws .

The Court, disagreeing with the

Commissioner, held that insurance commission income was not

partially allocable under section

482 to bank subsidiaries of a

holding company that also controlled a management company,

an insurance agency, and an insurance company where (pursuant to 12 U .S.C.A. §92) national

banks could not legally receive

any proceeds from selling insurance. Here the banks offered to

arrange credit life, health, and

accident insurance for borrowers

who were reinsured through the

insurance company subsidiary .

All reinsurance premiums were

reported in the income of the Insurance company which was subject to a lower tax rate than the

other corporations . The Court

refused to apply the assignment

of income doctrine to the banks

and stated that the "complete

power" to allocate referred to in

Trees . Reg . 1 .482-1(b)(1) "hardly

includes the power to force a

subsidiary to violate the law."

There were three dissents .

In Colt v. Green, 404 U.S . 997,

(1971) the Supreme Court affirmed without opinion in December 1971, the June 1971 decision

in Green v . Connally, 330 F .

Supp . 1150 (D . D .C . 1971) . In view

of the constitutional issue in the

complaint filed in May 1969, a

three-judge district court was

convened . The court enjoined the

recognition of any private school

in Mississippi as tax exempt under section 501(e)(3) of the Internal Revenue Code unless the

school has a racially nondiscriminatory admissions policy.

The Service announced in July

1970, that it can no longer legally

justify allowing tax-exempt status

to private schools which practice

racial discrimination nor can it

treat gifts to such schools as

charitable deductions for income

tax purposes . The Service

thought the June 1971 injunction

was unnecessary but did not appeal . Direct appeal to the Supreme Court was by interveners

representing parents and children who support or attend Mississippi private schools whose

enrollment was restricted to

white students .

On November 9, 1971, the Supreme Court denied without opinion the motion for leave to file a

bill of complaint in Alabama v .

Connally, 404 U .S. 933 (1971).

Alabama, acting through its Governor, claimed original jurisdiction of the Court and sought an

injunction restraining the defendants from assessing and collecting federal income taxes from

Alabama citizens and from exempting income or religious,

charitable, educational and other

organizations described in section 501(c)(3) of the Internal Revenue Code . The Government opposed the Alabama motion citing

Florida v. Mellon, 273 U.S . 12

(1927), which held that a State,

as parens patriae, cannot represent its citizens in a suit to protect them from unconstitutional

inequa!ities alleged to result

from a federal tax law .

On February 23, 1972, the Supreme Court reversed an opinion

of the United States Court of

Appeal a for the Fifth Circuit and

held for the Government in an

important case involving bad

debt deductions . United States v .

Generes, 405 U .S . 93 (1972) . The

question resolved was whether

the "significant", rather than the

"dominant", motivation test is

to be applied in determining

whether losses resulting from a

taxpayer's advances or payments

on guarantees of loans to a corporation in which he is a shareholder-employee are "proximately related" to the taxpayer's

trade or business. The problem

arose where an individual taxpayer bore a dual relationship--

as shareholder and also as amployee-to the corporation

whose default gave rise to the

bad debt loss . The Supreme

Court accepted the Government's

position that business bad debt

treatment is appropriate only

where protection of the salaried

position is the dominant motivating force and held that where a

taxpayer shows only that he was

significantly motivated by a desire to protect his salaried position the requisite proximate relationship does not exist . The holding prevents the allowance of a

business bad debt deduction

where the principal or dominant

reason for creating the debt is a

nonbusiness reason .

On March 6, 1972, the Supreme

Court again reversed an opinion

of the United States Court of Appeals for the Fifth Circuit and

held for the Government in United

States v . Mississippi Chemical

Corp ., 405 U.S . 298 (1972) . The

issue was whether amounts paid

by farmers' cooperatives for purchases of Class C stock of a

regional bank for cooperatives,

made in connection with loans

secured from the bank, are nondeductible capital outlays rather

than deductible interest expenses. The cooperatives were

required by the Farm Credit Act

of 1955 to make purchases of the

stock in amounts constituting a

certain percentage of the interest

paid to the bank on their loans

from the bank . The taxpayers

contended that the stock had no

value and the amounts paid on

the purchase price represented

merely addJtonal borrowing costs .

The Supreme Court recognized

that the Class C stock had characteristics which rendered the

market for the shares virtually

nonexistent, but nevertheless

held that it had substantial value

deriving from attributes other

than marketability. The Court

held its value extended for more

than one taxable year, and that it

was a capital asset and its cost

was nondeductible .

An adverse decision was rendered by the Supreme Court on

June 26, 1972, in United States v .

Byrum,-U .S. - (1972), an

estate tax case . The case involved shares of stock in three

corporations controlled by decedent, which shares had been

transferred before his death to an

irrevocable trust for his children .

He retained the right to vote the

shares, to veto the sale of any of

the shares, and to remove the

trustee at will . The issue was

whether the shares of stock

were includible in his grossestate under int. Rev. Code of 1954,

§ 2036(a), because he retained

either the right to designate the

persons who would enjoy the income from the property or the

right to enjoy the property himself . The Government's argument, which was rejected by the

majority of the court, was based

primarily on the decedent's ability to control the flow of corporate dividends to the trust

through the exercise of his retained voting control . Justice

White's dissenting opinion, joined

in by Justice Brennan and Justice Blackmun, suggests that the

decision "will open a gaping hole

in the estate tax laws ."

Actions of Lower Courts

Civil Case s

In B. Forman Co ., Inc . v . Commissioner, 453 F .2d 1144 (2nd Cir.

1972), the Second Circuit upheld

the Commissioner's allocation bf

imputed Interest under section

482 to two corporations each of

which owned 50 percent of a

third corporation . The court held

that "control" under section 482

includes any type of control, direct or indirect, whether legally

enforceable, as it is the "reality

of control which Is decisive, not

its form or the mode of its existence ." In approving the imputed interest allocation, the Second Circuit criticized certain Tax

Court decisions relied upon by

taxpayer, including P.P .G. Industries, Inc., 55 T.C . 928 (1970),

noting that to the extent those

cases would require a different

result they do not accord wi th

"either economic reality, or with

the declared purpose of section

482."

of a

tock of a spunofilstcrolbruptoiontion to the sole shareholders of the parent corporation

was held to constitute a taxable

dividend under section 355 where

taxpayer'q purpose was to put

stockholdings in a form facilitating estate planning, there was an

absence of any direct benefit to

the business of the original company, and the spin-off put saleable assets in the hands of the

taxpayers the retention of which

was not needed to continue the

business enterprise. While reaffirming its holding in Lewis v.

Commissioner, 176 F.2d 646 (1st

Cir. 1949), that a shareholder's

personal motives could be considered, the court held that a distribution which had considerable

potential for use as a device for

distribution of earnings and profits should not quality for tax-free

treatment on the basis of personal motives unless those motives are germane to the continuation of the corporate business .

The court found that the purpose

here, giving other assets to taxpayer's daughters so as to exclude them from active management of the business, was not a

business purpose . Rafferty v .

Commissioner, 452 F .2d 767 (1st

Cir. 1971) .

An important limitation on the

right of insurance companies to

achieve a wholly tax-free liquidation under section 337 was

spelled out in Buckeye Union

Casualty Co . v. Commissioner,

450 F .2d 109 (6th Cir. 1971) . The

Sixth Circuit held that the gain

realized by an insurance company through retention of 35 percent of its unearned premium

reserves on the sale of their insurance business through a reinsurance and assumption agreement was not subject to nonrecognition under section 337

because the amount did not result from a sale or exchange but

from elimination of the requirement of maintaining reserves .

The result, at least in the Tax

Court and the Sixth Circuit, is

that the "reinsuring" of its risks

is now severly limited with respect to use as a liquidation tool

by an insurance company .

In Labay v . Commissioner, 450

F .2d 445 (5th Cir . 1971), the court

affirmed the Tax Court by holding that the new custodial spouse

provision of section 152(e), which

obliged the custodial spouse to

"clearly establish" that he or she

provided more support than the

non-custodial parent, required

such proof only by a "clear preponderance of the evidence" and

not the "clear and convincing"

standard normally used in testing the Government's burden in

fraud cases .

In a case with significant effect

on publicly-hold corporations,

the Tax Court concluded as a

matter of law that the accumulated earnings tax can apply to a

publicly held corporation where

the management is dominated by

a single large shareholder or a

small group of large shareholders

who exercise effective control

over the dividend policy of the

company or the company represents itself to prospective or existing shareholders as an invest.

ment company with the avowed

policy of accumulating its invest96 97
1!

ment income . Having found taxpayer not to be a "mere holding

company or investment company," the Tax Court refused to

find taxpayer's accumulations unreasonable and subject to the

accumulated ehmings tax provisions of sections 532(a) and

533(a) for 1962 through 1965, but

sustained the Commissioner's

determination for 1966 . In making

its determination for 1966, the

court considered the market

value of taxpayer's liquid assets,

i.e., its stock investments . Golconda Mining Corp ., 58 T.C . No .

13(1972) .

After service of a summons by a

special agent on the taxpayer's

accountant to secure the taxpayer's books and records, the

accountant, upon instruction of

the taxpayer, delivered the boo a

and records in his possession t

the taxpayer's attorney . The taxpayer intervened in the summons

enforcement action brought by

the Government and asserted as

defenses to compliance with the

summons that the summons was

issued for the improper purpose

of conducting a criminal investigation and that the records were

encompassed within the taxpayer's Fifth Amendment privilege

against self-incrimination . The

district court ordered enforcement of the summons and the

Fourth Circuit affirmed, The court

of appeals held that if a civil purpose existed, as it concluded it

did, the summons is proper . As

to the privilege argument the

court held that the books and

records had voluntarily passed

from the taxpayer's possession

and control and thus from the

.'sphere of privilege surrounding

her" for there was no accountant

.

-client privilege . The taxpayer

petitioned for writ of certiorari

on January 10, 1972 which was

granted on April 3, 1972 . United

States v . Lillian Couch, 449 F.2d

141 (4th Cir. 1971) .

98

In Clifford Irving, at al . v. Elliott

Gray, - F . Stipp . -, (S.D .

N .Y . 1972), the Court determined

on June 15, 1972, that the procedure employed by the Service

in terminating the taxpayers' taxable year under section 6851,

notifying them of that termination, and assessing tax liabilities

under section 6201 before the

normal due date for the 1971 income tax return was proper under the facts and circumstances

of the case . The plaintiffs had

demanded injunctive rel let and a

summary judgment. The Government moved to dismiss the complaint on the ground that maintenance of the action was barred

under section 7421(a). The court

agreed and held that the plaintiffs did not fall under the exceptions to section 7421(a), citing

Enochs v. Williams Packing and

Navigation Co ., 370 U .S. 1 (1962) .

In United States v . First National

Bank of Arizona, 458 F .2d 513

(9th Cir. 1972), the Ninth Circuit

affirmed per curiam a district

court order granting the Government's motion for summary judgment in this action for failure to

honor a levy. After being served

with a notice of levy to reach the

taxpayer's bank account, the

bank set off the account against

a debt owed it by the taxpayer,

evidenced by a promissory note

exeouted after the tax assessments were made . Prior to the

assessments, however, the taxpayer had signed a signature

card stating that the account

should be governed by the regulations of the bank, which provided that the bank may at any

time set off against funds held in

any account all debts owed to the

bank, whether matured or unmatured, and the promissory note

contained a similar set-off provision . Notice of tax lien was not

filed until after the date of levy

and set-off .

The Government contended on

appeal that the case was controlled by the court's previous

decision in Bank of Nevada v.

United States, 251 F.2d 820 (9th

Cir . 1957), and that the bank's

right to set-off does not quality

as a security interest under Internal Revenue Code of 1954,

section 6323 . In its opinion, the

Ninth Circuit stated only that

Bank of Nevada requires affirmance .

In Mike Scaraflotti v. Shea, 456

F .2d 1052 (10th Cir. 1972), the

Tenth Circuit Court of Appeals

affirmed the district court's order

dismissing a mandamus action

brought by taxpayer. The prayer

for relief was that the court issue

an order in the nature of mandamus ordering the special agent

to give the taxpayer or his attorney advance notice of any requests for information from third

parties concerning his tax investigation of the taxpayer.

The Tenth Circuit held that be.

fore mandamus will issue, the

duty of the officer involved must

be found to be ministerial, plainly

defined and peremptory . The

court found no clear duty to give

notice . The statutes authorizing

the use and enforcement of a

summons, including 7602 of the

1954 Code, do not require Service agents to give notice to a

taxpayer that he intends to talk

to a third party about any tax

matter relating to the taxpayer.

The court did not acecpt plaintiff's argument that Reisman v.

Caplin, 375 U .S. 440 (1964), by

implication requires notice to be

given before any request or interview of a third party, relying instead on In re Cole, 342 F .2d 5

(2nd Cir. 1965) which rejected

such an argument .

Tax Legislation Enacte d

The Revenue Act of 1971 is the

most important tax law enacted

during the year. The provisions

of Title I adopted a job development credit repealed in 1969, and

codified the asset depreciation

rules (ADR) announced by the

Treasury Department in January

1971 .

Title If of the Act dealt with personal income tax provisions. The

most significant changes involved

are an increase in the personal

exemption and the standard deduction, and the allowance of

certain child care expenses . .

Title III of the Act provided structural improvements to the Code .

It included amendments such as

amortization of certain expenditures for on-the-job training and

for child care centers .

Title IV of the Act repealed the

Federal excise tax on automobiles and light-cluty-trucks .

Title V of the Act enacted tax

incentives to spur exports by

deferring the export income of

domestic international sales corporations (DISC's) .

Title VI of the Act provided a

special tax credit for employing

welfare recipients and made a

number of improvements in the

existing Work Incentive Program

(WIN) for welfare recipients.

Title VII of the Act dealt with a

credit or a deduction on an individual's tax return for contrlbutibris to candidates for public

office .

Title Vill of the Act provided public financing as an alternative

way of financing the

g

eneral

election campaigns of presidential and vice presidential candidates.

Congress enacted a number of

other public laws relating to tax

matters, the most important of

which are listed and summarized

below.

Public Law 92-138, enacted October 14, 1971, and known as

"Sugar Act Amendments of

1971," amends and extends the

provisions of the Sugar Act of

1948.

Public Law 92-181, enacted December 10, 1971, and known as

the "Farm Credit Act of 1971",

provides for (1) the farmer-owned

cooperative system of making

credit available to farmers and

ranchers and their cooperatives,

for rural residences, and to associations and other entities upon

which farming operations are dependent, (2) an adequate and

flexible flow of money into rural

areas, and (3) modernizing and

consolidating existing needs.

Public Law 92-203, enacted December 18, 1971, and known as

the "Alaska Native Land Claims

Settlement Act", provides for settlement of certain land claims of

Alaska Natives .

Public Law 92-279, enacted April

26, 1972, provides complete exclusion from income for compensation paid to members of

U .S. Armed Forces and civilian

governmental employees while

in a "missing status" during the

Vietnam conflict .

Tax Legislation Pending

Among the tax bills awaiting action by Congress at the end of

the year are the following :

H .R . 25, to simplify the Internal

Revenue Code of 1954 by repealing obsolete and rarely used provisions .

H . R . 424, to provide an income

tax deduction, in the case of disabled individuals, for transporlation expenses to and from work

and to provide an extra exemption for a taxpayer or spouse who

is disabled.

H . R . 1467, to include nationals of

the United States within the

meaning of "dependent" for tax

purposes .

H . R. 6640, to provide rules for

the application of Secs . 269 and

1551 of the Internal Revenue

Code of 1954 to any corporation

organized before Janaury 1, 1970,

as part of a business expansion

program to engage in a separate

marketing location not previously

served by an affiliated company.

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

'110 million limit apply to an

issue .

H.R. 10264, to permit an election

by a foreign banking business in

U .S . to treat U .S . source interest

income as effectively connected

income .

H .R . 10335, to permit periodic retirement payments made to retired or disabled partner to be

excluded for self-employment tax

purposes .

H.R. 10646, to amend Subpart F

provisions to eliminate from the

concept of U.S . property certain

debt obligations acquired by controlled foreign corporations engaged in the banking business.

H .R . 11124, to amend Sec . 103 of

-the Internal Revenue Code of

1954, relating to interest on state

and local governmental obligations, to increase the exemption

for small issues .

H

,

R

*

11184, to allow an income

tax deduction for additions to an

account for accrued vacation pay

earned by employees.

N ,

R , 11197, to reduce minimum

investment return requirements

for private foundations .

H .R . 11200, to relax exemption

requirements for social and membership clubs.

H .R . 12272, to establish minimum

eligibility and vesting standards

for retirement plans and allow

deductions to individuals for retirement plan contributions .

99
H.R. 14370, to establish a "piggyback" system whereby the Internal Revenue Service would

take over the collection and administration of state income

taxes .

H .R . 14628, to provide for the coordination of United States and

Guam individual income taxes.

H .R . 15230, to provide for an orderly and systematic review of

virtually all provisions of the Internal Revenue Code of 1954

giving any special exclusion or

deduction or special tax rate to

any particular type of group or

category of income .

Collections, Refunds,

and Returns Hed

1 . nternal revenue collections

by source and by internal

revenue regions, districts,

States, and other areas/ 10 2

2. Internal revenue collections

by sources and quarters/109

3 . Internal revenue collections

by sources, fiscal years 1971-

72/11 0

4 . Internal revenue collections

by principal sources, fiscal

years 19,10-1972/ 11 2

5 . Internal revenue refunds including interest/ 11 4

6 . Internal revenue refunds is

sued by regions, districts,

States and other areas/ 11 5

7 . Number of returns filed, by

internal revenue regions, districts, States,other areas/ 11 6

8. Internal revenue collections,

cost, employees, and U .S .

population, 1942 through

1972/11 7

Stamp Taxe s

9. Number of occupational tax

stamps issued, by class of tax

and by internal revenue regions, districts, States/ 11 8

Examination of Tax Returns

10 . Number of returns examine d

by class of tax and by internal

revenue regions, districts,

and other areas/ 121

11 . Additional tax and penalties

recommended after audit examination by class of tax, and

by internal revenue regions,

districts, and other areas/ 12 2

Cases Receiving Appellate

Consideration or in Litigation

Appellate Division

12. Receipt and disposition of

cases not before the Tax

CourtY 12 3

13. Receipt and disposition of income, estate, and gift tax

cases petitioned to the Tax

Court (docketed cases)/ 124

Office of the Chief Counsel

14 . Processing of income, estate,

and gift tax cases in the Tax

Court/ 1 24

15 . Receipt and disposal of Tax

Court cases in courts of appeals and Supreme Court/124

16 . Receipt and disposal of refund suits filed by taxpayers

in Federal Courts/ 125

17. Decisions of courts of appeals

and Supreme Court in Civil

tax cases/1 2 5

18. Receipt and disposal of collections, injunction, summons, erroneous refund, and

disclosure cases/12 5

19. Receipt and disposal of insolvency and debtor proceedings/125

20 . Receipt and disposal of miscellaneous court cases, lien

cases not in court, noncourt

general litigation cases and

appealcases/12 6

21 . Caseload report/126

Alcohol and Tobacco Taxes

22. Establishments qualified to

engage in production, distri

bution, storage or use of alcohol, alcoholic liquors/126

23. Establishments qualified to

engage in the production or

exportation of tobacco products and cigarette papers and

tubes/12 6

24 . Permits relating to distilled

spirits under chapter 51, IR

Code/ 12 7

25 . Permits for operations relatIng to alcoholic beverages

under the Federal Alcohol

Administration Act/ 127

26 . Permits relating to tobacco

under chapter 52, IR Code/

27 . Label activity Federal Alcohol

Administration Act/ 1? 7

28 . Internal revenue tax on manufactured products from

Puerto Rico/ 128

Cost of Administratio n

29. Obligations incurred by the

Internal Revenue Service,1129

30. Obligations incurred by the

Internal Revenue Service, by

appropriation, activity/ 130

31 . Quantity and cost statistic s

for printing/130

STATISTICAL

TABLES

100 1 101
ji,, Um,xamd, I dollar .

. See cable 3, P. 110 for tax rates add further breakdotim of hatima I totals by sour-)

Internal relenue regions. districts, Stated'

I odmickind imccon, add employment earn

and other areas

(States 101mmuled single districts indicated i n

by

TrAslintausl

ccraven a

11-th" d

Corporatio n

mc is'

11,01,11,

net withheld

Income ta

x

withheld add

'U".

niondlicy-1

FE

,an 1hine ; totals for other States shown at hot.

d

tibl.)

This

I and self-emchildren IQ=Idrdyd retirement m.n .i.c.

tax .. in... anic

as

. .

(2) (3) (4) (5) (6) (7)

Dallas St""' """~ . .. . . . . . -------

M.855,737 34 .925 .546

_152 .593 .18 7 _27.710,985 122,785 .357 1 .072,776

!4011 10

North-Atheitic ----------- ----- -

Aftedy go Sem ( ) t

43 591 .539

1 9

67

'1 ." 1

4 .903,825 26 100 241 54 954

___ _ -

753

11'

._

-

4 ~ c be -) ------

.guihi Maine)

2 24

526 53 ' :'.2

171 "' :.

'34

194 .705

1 : :7

603 27 4 :068

:

------ 1. 502

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

Boston, ~ . .. . . . . . . . .

broadl .

5

, 896

:T

12 .JS4

893,549

432 .268

4 .505 .621

103 .57 8

T 17 " 1

32D .859

3 .670.071

4 .706

6 .515

3

3

1 :04 5

36 9

y . . . . . (c)

0UHad. (Sea (c) below)

.,22606 430 1

3 6

5'

414 : 113 1:G61 :1

8 7

. it :

135 2.545.643 12 .219 22 .1 90

. . .. . . . . .. . . - ~ ------ -

Sul Ington .. . (Vermont)

,

.

247 638

, 1 5

6 "

27 4

84 020 447 :345 2~217 .313 219 1 1 1 4

'

. . . . . . . . .

. . . . .

4 . . ... . .

Al.,Illrd h r ---- ,Gmddch, ,t,w

.

4 .37 7.21 1

, 6 5

725 .381

205:491

3.150 D45

1

1 579

604,912

152 .320

2 .522 .662

350

34

~ :~.

2

lic e im r) .,0

P.,I ..o'a'- . (No - . hamr .fr~

'

024 .91 9

50

5 .

910 .266

"."T 1 70

1 ., 399

2

12. 141 921

26,

635 10 7 2 .S

p d)

Pmvdd,dc . ' :_ : : : ::~ (Rhode Island)

8,739

977 260

59 .56

7 D

113:~4

:

86 995

3 :

23 265 3 :978

2

_ _ Mid

c R'

.

30~766.764

161 .239

4 .53D .736

721 .628

22.915,153

13 .512

3 .850 1 .3117

602,460

18 .553 .711

24

356 962

5,632

147 12

5 835 .21 7

7

_ 524 111 1 1 1 7 . 1 711.379 3 .1125,31full 11 5 :431

19 .

.40,

-------- -

Phil ad

. to

h, .

S . 1 . .75 .tcl s

7 111 121

T :~7

517

,

977 311

I :6 , .

5 2 :101. .

1, 11: 734

7

1 :454 .203

~

198 39

P b

h (See (0 be[Z : ::'

4 : 7 79 :

067

.

594

3

1 5

4

1

9 5

2 2 5

11 221

al 686 .229

3 l69 9

.7 3

: 82

R

t

Richcom d

Vid

- ------ ------ .321 ,4DO 81 2 211 :3 24

.

466

89

] : : 1

719 5

559

14,01)

51 .152

28. 1

1 14 7

od

. u

s

So , Mo

.

Delaware) . . . . . . . . . . . . 294 .533

19 434

098

515,616 717 .548

:

1 09 072 603,417

9

0

1:

-

A U

. h L

.

3:456 :

495

2

.

5851 :005

33 468

T979 :

2 5% '5294'

3 .391 :92 5

495 026

10,434,458

2 08D 933

59 .712

2 543

ID3,41 I E 1

fifir inghtem . . . ...

. . (Alabama). . ----------- -

C .I ..b . th

1,724 .392 22 S 12 3 1 .332

''

294 .538

. ,

1 .028,334

.

91106

.0 ,

10 .3

78

.. .. . .. . .. . . (Sou Carolina) . . . . . . . .

Glam 11 j

1,214 .932

IT 5 : .1 ~

i

1 7 :563 203 .208 775,11H 127 8 3 69

--- tMor. Cdr,,i~ ha)_

Jacksid.

is 1.143AI2

760 74

746 .40 1

106 115

2,569,343

112

'

498 918

'

2 .046.375 1,407 22 .64 3

. .

J .ckdi . .. . ... .. (Florida) . . . . : : :~- 5 194 731

00 :

7 166

'

4 D

: 4

26 95

1

1 2 OOR512

7

941

417' :

171

C . . .. . ..

Nashville -

_

tr,I

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

: -

, .

2:3

49 42 3

3 99

61,813

.

1 .064 023

. 1

440 .728

2 . 8 2 08

1'406 8"

I

13 . 36

2 22D

25

14 .27..1

_

Cimcin nt? .. . .. . .. . . . .(San (d~ be .. . . . . . . . .lo.w.~. ::: :::

4, 6,64 9

4 17 92 8

I

6 .7% 56 Is 1

14 1 39

23:224 :992

I . . . . .

3,401 .046

562,995

19 594 : 23 5

2 :502 849

go: 8 5

D

211

jef .get

23

'7'

t _ : : : _ : _ : : : Sea it me l be : .. . _ ::

D

7 :

963 .204 1 111 11 1 1~023,410 14,1 .996

,

5AL2,685

~

28

., 1

31 :17.

. ic,itim,

a

-----------

lmd

13 .949 .874

: ~ :7~ 2

3 71 1 Ol1 g

'

1 .11 .1 7 3 11 11 18.488 58 .775

. . . (Indiant .)------- -

Lo,ill,111 K k ~ : : ' : 3'

al - : :

75 .1,7112

:,~. :

3 306 1 .668

1 ,

--. . . . . . ~ ho ill I ) ----- ~ -

W t i l

P`k ' . '

2 834 1 58 32. 55 f,2 .11 3 50 304

I"

33, 31,396 1: 138

es c .).. . . . . . . . . all

Midwest ittlit" 1? sb g -------- -

746 711 2

2 111~ 11

5 111,111

III

114,111 119 17 : 1 41D : I 91 57 3.91 7

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

.hard (South Dakota)

267 f',

,

:"

28 1252

1 .111 71 : 3 3,1 111 1, 1 1 334 .753 162 , 52

. ... . . . .

Chicago

----

.

99 71

1

'

2

.

422 14 1

2T ii28

1 471

"1

6 7

.392

1, 381 782

, 43

.2D3

7 .903 309 1

119 21

1

.326

Des Momes. . . .. . .

7 1 fin

. . W . 1 :37

,

T :g.

2 ., :2, 0 1 :3., :

641

, :

76 094

:

918 024 -536

7

:996

Milis

.

is 'in

7,1 03 '1 :" '16 71'

.7

If 117 '43 1,

207

1 ould,.

" '

5 73

1 234 21 5

4

15

. 3

1 1

2 .7 13 9 : 1 455 .392 2,143: 133 Sit2 19 31 : 9

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

. . .

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

St. Louis . . . .. .:::::: ~Misw uri

, ,

"132 ''

88,4 113

'

. .151~11 . 3

(U 537

21,

6006201 3 3197B 3:0632 2 43 :3'17

5 .48 7

St 27 537 . Paul- ------ -

S m fC:::: : ::: ~m~mrt`

3 .87f : 177 G4fL7 7G

.~

§1 111 371 11 2 1 86,19 1 2 .,1115

.

18 894

S

p 2h. S. )Imlmv) -------- -

th t R i

2,411 .068 429 .773

f : .7

99

1 16 :551 T :

215.665 3.057

:

9 19 8

o .

was eg on -------------------_-- : :: : :: :

. ... .

21,"3:1 1 2 , 610 978 14,703,446 3 .368,732 11,1611,3111 90,343 n 920

. a . .. . .. .

462 451

5,870,914

:

41 535

755 .350

400.448

3 26.573

92 .995

934 .341

3D5 .16 3

2 .863,2611 4 632 242 233"3

=nor

~'yl`'1T 1oW

183

.1 '

13,620 14I .M5 53,238 37 .821

,

3

.

1,1

S e b.

( ; .

D,nve, : : C l d

4 .132 3

: 8

131 21 3 111 11

3

111, 30 1,447,448 13 .922 22 .757

----- ( o ora o) . . .. . .. . . .. . . .

Little Rock

"

2 .919 198

7" 131

221 :7.3

114 771

2 : . I S:

1 960

11 11

3"

' :7

2 .133 872

:

9 .697

1 0

_ - - 0

Me . Orleans ---- : : : : ~Lo .ixmr.~

2S I

2 .00 . :

26, .7

1 94

1 . 0

597 .427

1 1 87 9

375 .558

4 0

19 14

1,210,846

4

34

2

' 9

4 :534

Oklahoma City, . .- 1 13

. .

I

Wi

1 .946,235 271.112 ~j71 11 1 117 .715 1155,105 1 17

: 1

ld 1 06

. . .. . . . ___ (Kansas) -------------- -

West rn

1 .403,573

1 9 .fl :,U0

307 423 737,645 6U35

I

e ei. . . . . . . . . . . . . . -- ----- _ . _

A,"'.) ------- ------ -

Id ...

21 .087

55 215 :8 7

507 757B

3 .170

17.603

12 273

21,355,191

192 : ' ' '

' ~

4 246 782

31 .542

16 .

$78,153

10 .07

89 73 9

2

14M509

S95

et.. . . . . . Mo.

M .". ... . lln

.

311 1

2

.

31, 391

44f 66 8

1 11

79 3

85193

3

I 58 .302

313

7

1

253

3. Z33

Honolulu w i) : : . . .

Los Angel . . (Sea b~Io

'32 58 :

3

10 111 122

7

65. I

S

,14 0

.

535 16 1 GO . BN

:

43? 544 2 1 42 5 . ..... .. . n, : : : : :

Phoenix . . . . . ... . ... (A,uchal) : :

: :

1 181 Ott

.

1 : 1,1

36

If 1 .,111 :1154

78 3,

1,12~1 24 .21is1. 1 .11 :646

730 323 .1

:30 8

Portland .. ....::: :: : fl,e... ) . . . . . . . 6 740

. . . . . . .

R :

1 .189,682 '58 156 1 .351 .394 324,261 1,016 475 1,090 9,55 8 an . --------- N-0) _ --- : : : : : : :

S ll L k i

1%1 :111

4

18: 15 3,72 .026 86 794

1

1

282 :

I '

2 61 7

:

a a e C ty_ ----- (Utah) --- ___ _

I

17

406 80.271 469 .616

:7

90 41 374 73 T f .003

:

3 139

that,*,:: : 1: 111:623 7V :131 6 .472 111 1 .164 .932

:

5 .193 970 95 .90S 37 .8D 3

Ofti of interns ideal Opmr,tions .

5

2 28 024

B317,316

271 7g g

3". .

2 :

" s

o

.06S1 96

416 .16

92,9535

1

.1773"'

S~7

.726

" 27.77 1111 s.11e4

Puerto Ric.-, . .. . ... ...

. . : : ::: --

308,809 705 194 Its 10,602 178 6 . . . . . . . . . . 5 297

Olhv__ . . . --------- . . . . . . . .

Undistributed :

528,507 39,153 464 .600 82 .351

:

379 0% i7

.

317

Fecld~al tax deposits and 311 43 1 3 2 11 269 G84 733 83

G..hdm~ub,ic .t`,dit .addI-- F red

Transfer ed to Governor

2 , "' u"M

I

86:9.

_

-1 "1 '

~ D.

3 :7

- ----- - --

1 5~ :

_ UG.,21.1 [ 1 16 . ~5:1_ _ __- ------ -- -

-10 .690

-- ----

- Withheld taxes of Feden l l. :J 4 72 -: :

----- 4 .172 -

9

---- __. ...

94

, 1 72

--- --- -

Clearing .,count or Esc- t.es-ungto full I

and .0-An F.!,, md Italy . . . . . .. .

.. ... .

I

-61

I - ------------- ---

.

. . . . .

.

----

. .. . .. . . . .

. . . ..

.

.

..

.

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

Totals to, state, hot he . . be, .

"a 1 1.411111 19 :962 .545 .596 14 .741 5 7

his. 15410 775 ':9562,171 7 .065 97 :04 :71'3 :333 '91 :1"118 3

: As J91 96

(C Me, Yti --------- 31 .107 :241 7 :0311:711 21 .857 .379 3 .145 .59914 22

271 18DOING

~d 12 I) Ohio -----_------- , 7 1 11 1 41 14 60 50.235 132 24 30 11 .912 .687 1,307,9 7

:5.5 1'. ,, 20

6

9653 1,413,7 7,956

81.182

P,mdsyhv .d ... . . . . . . . 12,439 .788 1 .512,145 9 .524 :144 "Mv

(Ii Ifin., . . . . . . . . . . . - 10 .403 .295 1 .485,559 7XS~ 30 1.749 .6 5.310,716 18,454 47 .503900

102

areas-Continued

[In thousands Of dollars. See table 3, p. ODD for tax rates and further breakdown of national totals by imurces]

Alcoldol taxes

E

."Et"a" Stiller! Sidift textS

Intri-i-in . stricts, States and other total (SUM

To"' (States ed by single it brut, Estate tax Gift tax off .1.

a,x '

re"I"O'

hotels for other State is ~~hxpxrfml 26, 30.

indicated in parentheses domestic, s ~ ch,1,U ~'cxd~.,,)Is. In.,

shown at bottom of table) 36~ 1,1,1rd Total affected 'he le d

lostby..

(8) (9) (10) (11) (12) (13) (17 .) )

United States, total --------------------- 5.126X2 16 .247 .036 5 .110.001 3 .7611,915 761,612 2,959 .725 27 .163 12 .11154 552

North4flactic Region ------------------------ 1 .23D .'54 911,040 1,1611:113 ;g-,.. 1-1".497 271 .11139 Z .976 . .2fS 2 .576 21

41b.n, .

--- (Sea (c) bal-) --------- 4 . .021

Its 5

24 09 14 %1 198 ---------

.

.- 198 1

A .. . 1,2~ Ill 64

8. 2

: 7 1,370 1 : : : : :: :: : 2

'7~ '31 (7

833 IS 94 :17 68JI 17 4' 2

fission . M ss. is 62 9.739 318 .014

H 2 181, "' 13 .7" 3 3 3 :390 4 . . .Brooklyn . . .. .

. (Ser, (r) tb.lcmi~ --------- 1142 10 197.908 15 .01 Ll 479 331 2

(San (c) below 2S: 2641 52G 103 .532 38350 727 723 (1

f1l; d 11, -in -------- 1 3 - ------- 92 336 16 64 225 215

thin ------ 'Ce-e~',~) . . . . . . . : .- 2 938 17'

... 39

Bd

Hart1 5Rd 1 3G M 505 77 4 '1 64 ".670 229 11 7 .660 W.82 788 406 1

alludhatta '--------- ISid

'c' ""'i ------- ."d 2, : 17.063 33? . .. . . . . . . 2925 5 35

. . . . ..

..

Portserfori e His hi a)-------- 14 .676 .062

4 . 85 10.333 Its

.

.

.

.

.

. _ its

751

_ :_

w mps

64

Providence

. _:::

hodir

I

stand)- . 7 :469

IT

2,

5 6 9

.555 2 .26 to 3 .0 :1 Mid-Atlantic Reg, n -----------------_-----

: 1741 13, 7 11

4

11 .1121 210 :140 05,421

"1 17 '558 67 OD3 237 .813 76 :051 157 .919 3 45760 371

Ballimmore

----- 213,220 1 5 496 499 .362 2BI .261 178.506 3

:, 718

New .rf~ 1 5 666 1 104 .705 1,218 636 154,132 8 696.976 145 . 06 Philadelphia- . (So, (e) be 155 $9.037 67 : 11,112 669 461

" 14 3S' :Z. 371 19.599

Richumod- ~Ijrtj'n~.,Ub 1*48

P . . .. ...

itt"" h ---- - So 7~J75' 4 .3R 182 065 27,1522 21 3 7" 31 1

21114 3 :141 31 71 1 41 --------- 1 58 1 7,, xi~7, IT 2K

------------- It UM T

.a, , 9 M. ., 95,248 42 .151

Sam

SO 2 as 2a 11 1

=Vml

Atlanta ---- 21 70,231 9,872 24~1 L, IS :~331) 2:4 43 1

:130 6 211 ---

~Al.h.ni ------------- 35 .339 2 .565 09 650

. . . . . . 56 1

113 2 SO 80

South Carolina) . . .------- 21 :

'Ill 450 341:2 27 . . .. .665 115 124 131 1

Glmrsb .

.

.. . . . . .

(North Carolina) 91 2 2 3 . 1

1 .1 ?31 .0 se. . . . . . . . . . 1 580 362 12

'

:3 G 16i2lI 113. 7

~F __ --:

: D3 116.~32 9

Julisonlille "clit"'? 241 172 1'5:'~"3 W)0 6 .380 '70

4 To.. . ts) 29

.518 4

"391 .71, 38

. . . . . . . 29' -jjj'.j)j* 1,295 .111 10 .315 1,6061 4 . . . ----- 53'1

:'145 A :,31 ISIC317 1 .410.756

(i:7g' 211 30 213:577 182,957 . ... . . . . C (it) 111:713 766 1. 1871 .45 .282 21 7

22 1 16 313 1

11 11 :~1,13 7951 :l7l 12 :348 1 15

C aVeladd. .

--- (Sea (it) but ..

.3.1 30 218 74

.1 '14

IG~ .3 48

: 1 :2 3 1 508

Die'troit --------- '54 10 1 64 2% 641 2

1 31 I ' a S, 879 456 3 360 146 338 :27 111 :111 1 3'

`

3BI 683 7. 1 :%2

126 1 Indil"Imall, -------- .2 :17 0

43' 11 04 214 81 701 591 685

5

to `VdUr

(Kentucky) ------------- 39~636 at

Parkersburg. (West Virginia) --- 20 .422 1 .024 3~021 2 .141,u 2 ~11` 2,1" 14

DT

7,4 489,94 122 31, 354 12

Midwest Region . .. . . ------ -------- 7142,105 48,803 1

2 .158,555 9

123 6T

. . . . . .

Abortion. 7 762 15

1

"u'

2

., :3"' 1'5 :" 803 :271 IB2 .2 ' 171

.

~,dd (b ~)b.lms) 384 304 1 . . . .

. 33 S6 1.'4 305

. . . .

Dra

Me . . . Urw.),_ 51

.071 3, 7Z 349:797

F,,Ra

Milwaukee (W oconsin)

------------- (North Dakou)

---- 7' '7

.

: 4: 332' 3~4`Ss 250 . 1"7 3 IDC12~34 2 jill 3 .14Is ISO 1

11 14 7 .493 96 ------ --- % .. .. . ..

Omaha . . . ------- (Nebraska 34 .937 1 .797 3 41 :

3 2 2 138 Mli : T2, Diff

U~ ---- 25,794 1 T6,

I

St. Louis.- .

.79

:1 39.53 13 "' 1

:37 HIT

. . . . .

11 119 3

,L x, ,"no 7 1 2,920 3,018 2M . . .. .

:3'1 '32 1

.

. ~30 1

"

18 567

`5"" 87 3

211 147 ------- 2 5

So, "'

in . . . (So

. b) belomi IT ' 291 7 "

2 34 52 .710 1 32 .693 3D 1.269 15

.-1 R .g. .. .- ------ ------------ -I " 3 If 3

' .""74

25 79

Alirmueritur- 10 :2-7 - :'3'17 8 . Is' ~.2-73~ 21,905741 3,D90 . . . . . . . . 220

Austin ~Sal (1) be ow ---------- 170 .175 11,6730 1 - 10217 - 0382 57 .31 . . . . . . . . . . . . 136

Cheyenne. W0UinU,dw_)__.: :_ : . . . :

6 :2W203 1

210 - ----- 75 4

Dallas- .- : : :- : : : : : (1e, I 'or 75 be 118 13 .06 371 :253 54623 129 178

.195 89 1 ... . . . . . . .. .

Cause, . _ Co ado) -------------- 31 "' 3 33 3 . ---- -- 46

Little Rock . . . . . ~A,k.dsws) . . .. . .

14 1 0 42 .588 25 . 52 16' j93- 14 .150 ------ 388 2

No, 0 reams - Louisiana 53 .385 4.919 75,767 237 SSG

20 73 4

Oki home City ----- (01, I.hord .) ..

. -

:,4 :1,71. 1 :~1,7~1 341 ~1 :T .

Wj,'hHa (K.m.s) 1 3 96 459 34----------- ------ 15 :' -1 2 .112 2

Western Region . . --------------- -------- $71,746 54,827 676 .3"

434 433

Iji 1

1 " D

o

I'63N

. .. .

43

Archon .lo_ ---- 830 21 4 53 149 144

Do sm . . _.. . . .. .. . -

h

7 .934 593 5. 2W 87 311 . .. .. . . . . . . . . 31

(M

I . 'N ""' "

4,722 alone . . . . . . . on . 1, :'0' 03 3

.

. 13 667 "1 1. . 4 .12 1 75

Honolulu. . . . . . . 92 16 453

a 172,433112 . . . .4 :0191 36.88Z9 76 .257 ISO 732 . 379.417 IS 421 34 .329 1.)

Lee Angeles (S 131 7' 0 165 6

... .

, :1 3

Phoenix . . Admin .) --- 41 , ,

.1

i . 159

Portland ------ (Drug.,) ----- 34~ 66 240 4 3 : '1 W36 11 . 07 8,287 1 .293 6 .899 99

N

'it 71 1.9 - .587 15 .404 94 87 -------- ------ . . . . . .. . .. . . - -------

it no-----_------ ( 6

Iva a) 102 '84 17 325 1 37 7 It L,ke City. . . . . . i4i Iiii --Eilbi 6" .- (Utah) ------- 8 IS 8

S (See

S :h F

274 .474 .619 121 :394 409 34 282 .495 32 .48

_ : --- 71 .033 5,093 63 .3 69:143 25 . .? 21 .141 3 .140 11 170,

Sell, ----- 6 1 1 11 13 ` "M I

. . . . .

. . .

e. . . . .. ---- 19.503 If I . 36 33 :001 9office of international Operati

"' - --- :

Puerto Rk 0_

64 93 29 3".16 : :: : : : : : : 91 999 17

. . . . . .. . . ... IN IN74

Oth . . . . . . . . . . ----- ------------- 17 .997 594 6 .162 ----------- - ------- - - ------ ---- . . . . . . . . . . . - ------

depository receims --- ----------- -- ------ 3 :72 ---------- I . .. . .. . . ... . . . . . . . . Unit sle't"ZI tax deposits

d 6

and

Gasoline "' ,

I, & excess F I CA red it, I ----------- __ ---- ---- - ---- ----

. . . . . . . . . .

Tc.rx,mi ."drt .".,!c,rm,n1 of Guam --- ----- -

: ::: ::: :

: __: :: : : : : :

:,i : Withheld taxes of Federal unployann~ef,in fuel . . . . . . . . -

Cl...

inglicro, of to, E .- ---

and dfl-Av Force and Navy ------- .. . . . . I--------- 61 1

----------- ---------- I --------- ---

Total, In, state, net hrmn abus e

Calit,uni ------------ 651~111 31 :140 1,111,712 592 :146 396 371 73' 1

924

3B

.2 . 42,

at, 66D 127 3..-1

820

.3

"2 244

17 1.136,086 139 3 2

1 IT

so'

114 54

3"

'2'

73'

1

I 1 4

its Is If fit IT

II :,fT 15754 367 997 .098 1177' .60

.3 1, it, 1 1

.657 Is

It ~f 7- 1 7 1 _7 I os

i

d~ 0

124 11 S:2"09 55 125 3

"1

387 __2 :740 163! 1 If '

I

. . . . . . .

. Ito

111

100

Ohm_ 7,1

234 I M 1. 89 1

:

24 .6 21 .050 1 ~074 .265 1~71,517 1 IT 703 1 7 ~ SOG

175 1

.501 2 707 3.300 --- __ 39

(1) 7..

. 09 836 2 5

-------------- 288 .674 24 .792 1 .478 .340

78

3

7

2

7

2

41

2

3

2

103
Table I.-Internal revenue collections by sources and by internal revenue regions, districts, States, and other

areas-Continued

[in thousands of dollars, See table 3, p. 110 for tax rates and further breakdown of national total

. by sau,cm )

Alcohol t-a-Confiread

Internal umenne, riamns, districts, States . and qlhdll Wrels .-diii Is, u., Wes Beer taxesareas

. -cs in

cluld in IT St"Z Far ia""' ing'.., dSi,,t,s show ' i n

bottom of table) 1,ported 1 0.

uffe

it

Total (T flect I l 'F Z~' o s

e d

b y ,

ustinus) no.

ax~i, - b r

Is x as 1~

Total c I ~it

by Cost mas

t".%. I

a,W,

f18) (19) C10 f2l) (23) 124) (25 )

United States, total ------------------ - 181,223 17 .547 IGO . 50 3 .5 6 1 .167 .963 6 .539 1 .157 .745 3 .519

N .,Ih.At frantic Region-, ., ... .. ... . . . . 35 .07 6 8_.~n _26,541 264 135 .121 3 .351 131 .214 55

Albany . . .. . . .... . . I so. (r) hftw)~ ------- - 556

. . . . .

550 6 14 .136 --------- 14 .135 51 Augusta a)

M'i' . . - ____ - Io r

50

30

30

Boston -M saw,

Brookly. .. . ....... . .

.

s" Z v`L

~ .499

, ?"

fAl 7 14

RE

27

S

12,625

0

5 7 5 '

IIA63

57 4

'

to5

1 1

Buffalo- - ~ . . . _. ,s . b a ~ . .- 17 : 48 20 :50 7

:

20 317 No B.rheilt . . . . . .. 45 -- ----- ('f 4~ 7 . . . . .. . .. . .

N oWIWI ------- ormact

Manhattan ~Sea (c) below) . . . . . .. . .

- "

110

7 .617 !i 9

849

2 .359 .205

.

32

4 D

Puts 121 moUti : : : ::: : N w Hampshire) ------ - 5 --- ----- 4 1 16 .726 ----------- - 16.696 3 1

field Providence .,------ : : : (Rhode Island )

-Ateurtic N mr .,

_

I

I I 5,22

.- -

111 11 .141

3

250 fir~ "21 ----- -- 111

I

1101703 78

I

40 5 Baltimore . . . . . . . . . . . (~binji~n ~0 D,C .j

2 , .I T :

.36 54 27 .089 381 26 . 653 50 Newark . . . (N w I ,,a

T 'IS 1 1

11 11,111 11 13 3 1

, : a

Phlad

Pittsburgh --- ~~rc b' :Io' *w~ : : : :_,

1 :617

10

1 02

3

4

2

3, 47~

21'079 ---- ---

37:

20.9141

Iz9 z

0

lb"

em.d _ ' - ----- -_ 11m,s ) 1,744 1.615

9

yvil ;~ : : : : : : ~ 17 4:953 ------ __ 4~1143 Ila

Wave, .)

S

.nho

D . . . . .

.Itin'"Region . . . . . . . . . . . . .9D21 IM' 9031

2

109,435

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

AD 610

all, -----

~' b "

I

I

. . . ... . . . 531 173 15.8

2

----- . . . 15:824

11

ob

nalugh re A Ia rua -1 .. :

S .3 . . . . . . .

5 11 35 F ,

uni. . . . . . . . . . . . (South Caralm .. . . . . . . . .

E-ru'l,... ~Iurll I fies)_

46 5

p93 . . . . . . .. . :: ---- -- W911

39 7SS5 1 --- 57

137

'Itlylon . . .. Nfiss'-poi)

B * " -- -

)ask

sa-111- ------- Florida) . . 2,3 4 i,lh 9,12 27~ 45,000 383

Nalfilio.. . . . . . . . .. .. Tamua ...;: : : :------- -

: u

. ,

an I

a

go,------ ------------- . . .. . .. . . . .

7

5,394

------

-.46i 390 6D5

8 .47 6

124

'

-- ------- -

3

5

8 .38 2

123,529

95

Cin, inn 203

.li ~I:e ~dj . .. . ty2 . .. . . . .

.

1 1 '

:13 7

'1

, . , --- " 71 1

Cleveland. . . . ------- I..)--------- 1,428 . 193 o5 8 .490 5i 1 4

24

T o

Detroit . . . .. .. (Michigan) 2,36 7 640 1 .6 13 215 4

1

384 48 :1 1 2 1 2

Indianapo is . ... . . . .. . T ndiarCD -- -

To he"

3 to

609

. (

607

2

103

2 1

15"5357 ,

11-71 .5 1

.54

346

u 4 t

,keraltui

P'

5 -- ----- -

. . .

-- ----

5 79

7 9

Midwest Real.. .. . . . . . .

--

7 .750 Z .297 5,347 106 314 .123 387

5

so

Aberdeen . --- -

C l .... . . . . i1e, (1) Inlow)ic 4,894 1 66C 3~W

6

51

30

5 997

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

310

------ -

5 .637

30

1 1

C as

M.Ma- Iown) .

. ------

,

114

. . . . . . :

.

-*

105

IS, . . . . . . . . . . -

95

1 8

Fa ; - - (

N.rth C.k't'-. : : : :

5

Mi w Dvisco 'in)_n __. i 11 ---------- 3 1, i --- ------- - - 36

. . 1 .

On are : ~Nebrax a). . . . . . . . . . . . .

'

350

13

26 7

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

66

10

17

3

WIT, S

384

7 5

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

137 .440

7,363

to

Z I St. Mix.. ri) . -------- _ -_ 1 996 166 I,RZ5 595 916

1 95,905 70

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

Sp,imgfleW______ (See

366

6

19 6

-------

162

2

a

5

351 .664

31

---------- -

----- ___

35.528

31 .217

136

14

Sou

freest Region-_ ----- --------- 1,838 494

597 175J

585 282 174,403

9

DO Albuquerqu e A.Ifin ---- w0m) 1,", 1

W. . . . 4

9J2

------

557

2

1 .,

2

359 53 .2983 --------M- ----- 5K76i_ 3493

- ---- ------ -------- '*) ---- -

Dellas _

Denver . . .. . . . . . . . . . . (Colorado) . . . . . . .

184

12 - ------- -

184

to

1!)~15.

74,995

-

74 :954

94

4

Lh U, Back-- No* . . . (Arkansas) . . . . . . . . . 416 411 16 35 ------- - ------ _ 31',

C, Orleans ~Lcr.m-) _

Is

he .

. Cf,

. 0 k Inhe"i

22 ,

5

------

11

5

17, MIT

143

"

--------

16 .89 1

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

124

will, I 11

. . . .

. . . .. (K .e .x). . . ... . .. ... ... 5 - ----- 5 105 -------- - ------- W

Western

... . ... . .. . . . . .. . . . . . . . Ae,h ..... ~Ahlka) . .. ... . ... . .. . .. .. .. ... ... .

112 .032

1

1 .755 109,472 80 5

1

129,934

4

1,283

4

.__ IZ8

:

355

I

Bubo Irish., ---- 25 ------------ ------------ 25

F . . . . . . . . . . . . .. . : : : . . . . .

3 1

IT ""

1

Handle - ------ . .. .

2

73 701 ~:~

1

3

1 7

2,313 107

. .. . ..

1 62

11, Angeles- '

~ 2 aa ' ""*' '19

a 2

~

3 .108 219 53 .772 731 52 .905 13G

Ph

.ex

A, , it . ) : : :~: : : : : 2

5

( ) ----------- 51 2,281, (*) 2 .272

Par d T o . . . . . . . .

N.._ Nevada) - ----- ------

239

4

5 2

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

4 2

--- -------

14

5

4

6 .586

4

I s

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

6,542 21

Lak, CAY . 4

1,11 3 -

3

27

2 7 San 106 .416 60 IK52i 239 2U .93

, '

8 3

offiseattlie 1

cast ,,rna one care ons ----

7137 . . . . . _104_ !)Do

I

-------- 113 43 .969

ID

62 43 .831

10

16

"a ""

R

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

3 . . . . . . 3 10 t o

othe

Umd,sftib` ------------------ ---- ------------- .lad : - ----- ------ * ---------- - --------- --------- -- ---------- ------ * ----- --- -------- ----------- - Federal deposits a d depoliery ol lot,

tax

. . . . . . . . . . .

_ * _ __

-

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

-

r

G so me, lubricaung or , an excess ICA credits I .

T1 slurred to Government of Guam . . .

Withheld 11113 of laderalernployces-- ------ - .

. . . . . . . . . .

. . . . . . . . . ..

. . . .

. . .. . . . . : :

. . . ----- -

. .. .

:: ::: :i: :

---- -

. . . . . . . .. , -

:

_ :~ - --

: : :~ _ : : :- : :

--- --- -

-- -

: : :

:~ ---- -

-

- 1 .1 - Meant n

, CCU

"t 11,

L

~ I, Is .,-I bar un

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

and i

_A', Force n

dbvy. . . .. . . .. . .. . ... .. . . . . . . . . _1.. . . . .. ... . . . . . . -------

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

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

Totals for states not shown above

Californiao'.

1 M

4

1 N1

71 111 21 1

b) Illinois1

IT

3 7 3?

C ~_

3 4

1

(c) New York

it) Ohio, .--

2

32310

57.1

87

22 1 1 3

Wo 280

~

4

38,227

11

.

38 .145

1 3 7

3 1 (

o) pmus,wru. - ------- 640 6 58 .550 ------ _ - 11 33

9

21 2 t

I) Tax . . . . . . . . . . 1 ., 543

2

83 .239

~, :

558 444

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

areas-Continued

Ifif thousands of dollars See 181,113, P.110fol tax ,fl.,x.db,Ih,, bm0d .wn .1 exten,Mtelal, by smuneas)

internal revenue rcauns, districts, States, and other areas' (Stairs ,presented by single

districts indicated in paumberes, total, Is, other States show, at bottom 11 table)

1

Total Cigar ' Other "

j26)

s

(23 A29)

United State,, total -------------------------------------------- 2 .20 .273 2 .151 .158 L4 .173 1 .94'

North-Atlaustic Region ------- .132 T,

-

3ii

-_

Albany------- ----------

--

38 IT

A (Maine) . . .. . -- ----- N sion -

(fie-chusetbi) . . ~ -- -------

O f

141 2

. .. .. .. . .

144

Rumlily . -- --------- . .. . . . . . . . Ilg,,, ~ h e

Buffet ---- ------- S

- --

_44

. . ..

2

7

1 3

Burlington -------_---- - :_ : ------ (V real) ------ -

Hartford ------- ---------------- __ - 22'

. . .. .. .

.

12

.

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

:

Mirehmitim-_------------- - S .

. C) a . . . .. . .. . . .

6 13 1 69 420

Portsmouth ------------------ lR lod h 11~ ,nquhux )

Provide- _ . . . - ---------- I land) ----------- ------------ -

Mid-AflimficRogim . . _ -------- ----- -------- ---------------------- -

Bell... ... . . .. . - ------- ----- Mruyla .d and ITC.,. ---------- -

522

B,

4" .8VsG

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

22,627

2917

1

~

Newark . -- ---- -- ------ ------ : : :~_ Ne,JllIay)-.--

-- ----- 5 5 4

P 5.

hilrdebehis . . . . . . . . . .

Pittsburgh. . .. . . ~ :~ "

22 .23 7

"

1-)

22 .237

16

. . . . . . . .

Richmond, 500 .? ------- -- -

9 1

499 .855 22i ;i i

Sou Wilmington ----- -

thu-st Begin

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

. . ... .. .

Aflkmt `------------------- ~G rRb1-------- - _-- ------

I . ,

1,236I .360

I . )

1 .220 .479

. . .. .. . .

-

15'66

I :DI7 . . . . . . . . . . . . -

Dinnringh - -------------- AI~b-a) -------_------_------ .... .. .

C lumbia . --------- ------------ ~S uth Carolina)- - ~ ------ -------------- -

Greausbo, ---- ------ Hart h Can. Im) . . .. . . . . .. .. .... . .. . ..

1 .584

1 .215 .067

. . .

1,213 .953

"i) - ------ --- - ~'1

Mrs i' --- ---

223

_ _

13 . . . .. .

Nashville . . . . . . . . .. . . . . .. . . . . . . I'nd. )_ __ - ---- ---- -- 16 .292 057

nen,e,, . . . . . . . .. .. . ... . . . .. ---

Central Region - -------------------------

262

434 .929

. . . ... . .

43D,654

4

41200

257

74

Cincinnati, dl~ bl,.1.1*

Cleveland- -----------_----- (So ~d

9 1

697 . .

91

84

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

.

Det oit --- ~Michugan) ---- ----

-- ------ -- -

: 23 2

Imlenagarl I mfi,na). . . . . . . . - - -

Lo ""t la - ----- ----- . .. . . . Krnt .,ky,f . . . . . . . . . . . . . . . . . . . . .

4

433 .3,1 ------ 2,6188 49 . . . . . . . . . . . . tio

Pn,klrsbqlg West V 'Final -------- 307 . . . . . . 307 . . . . . .

Midwest R

eg .. . . . . . . .. .. . . .. . ... .. . . . . ..

.

. . ------- - I -- ----- -- -- .- 49

9

4o"d

~S.iilh Dakota) . . . . . . . . . . . . . . . . . . _ .__

Chirs

` _

::7 So, (b) below) . . . . . . . _ -_ -.- . . .

d

. _ _

42

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

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

OeS M ih11V5 : : : :! : :~ : _ f owa)-_ --------- - - - ----------- -

Fing- ----- ------- ---- -----

. . . . .. (

North Dakota) ~ - ------ _ -------

. . . . .

) (

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

Omaha

-------

.. . .. . . (

Wisconsin) . . . . . . . --- ------- _

Milwaukee

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

7

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

t- f

-

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

St . Louis,

.

------

-

St . Pauleld ---- ------------- (b) hot..) ---- . .. . . . . . . . . Spliflgr, -

; 1

S,, ,

freest egi,n ---- ----------- - . . . . . . . . . . . . . . .. . .. . . .. ...

Alhuquetq,e-- _ .. ------ --_- (No. Mexwo)_ ---------

20

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

9

------ -

An sti-------- ------ ------ (So . (f) below)

Cheyan .,,-,- - ------- Isly,mingb

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

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

Little R ck - - ------ . .. . . . ----- - A lk - .

. . .

. . . . .. . . . . . .. . .. . a . - . -- f

e, () i~ . . . i au-) . . . . . . . - --- -------- .. . .

0 kurah0una City. . . . . . . .. . . . Oklahoma) ~ . . . .. . . . ... . . .

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

Ka-0 --- . .. . . .. . . . . . .

Wchit. -.

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

Iffelter. R .gi .. . . .. . - ---------

. . . .

!2

.

2

:

. . . . . .. . .. . . : .

22

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

69

Aurh

' Idah

...ge -------- --- - ---- -

.) -----_------_--------- __ .. .

1

)

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

. . .. . .. _

. . . ... . . ...

He2 .a. --- Ivan t-) --------- ------------ -

Honolulu . ----------------------- - (Hawaii)

To _ --- -------- -

'

Angeles -------- ---------- - ~S e (a) below ---_----- -

Phoenix. ____ ---------- ------ :: . : . A'~,nma) ------- -1 ----- -

Portilud,_ _ ------- ---- (Oregon) ------ . . . . . . . .. . . - : :: ------

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

Reno, ------------- - ------ 'Nevada)------------ -- - -

"" L",

ty Irish). . . . . . . . . . . . . . . .. .. .. . . . .. . .. . . . . . .. . .

. . .. . . . .

San ~S,, . d) - - _. . . .. . . 2

Washington) --------- . . . . . . . . . .

. .. ...

:p - .3 . . . . . .. . . . .. 3

office .1

Pie -----

11 .73 3

11,733

IIJ33

11 .733

.,be -------- --_----------- . . . . . . . . . . . . . . ... . . . . . . . .

Undisftil,fit it

F ad etal tax dean its and driaosiftry receipts' Case a -

'a oil, led el- FICA credit, 7 [in,, b-at e

"In'to red to Governmentof Guam -- ---- ---

Withheld taxes of fed ... le.,pi-es

Clearing ,u,,t to, Lnisa taxes-exatun fuel and oil -Air Force and Na .. . .. . .. . . . . . . . . . . . . . . .

Inlely for state, at been be, ,

(a) Californ,

..

.. . .

' -------

13 2 22 59

(b) I Ilirmi.. :: -

(0 No. Ym1 .____ 5.

32 1

1 o,

36

...

(it) Ohm_ .. . ~ --- : : : : : 7,13

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

17 2

P.riv-a.

le I . . . . . .

22

400

202 1

2,~

3

1

1

813 --------------ji

Tobacco I-I I,

104 105
Table I.-Internal revenue collections by sources and by Internal revenue regions, districts, States, and other

amas--Continued

[in thousands of dollar,. Sao table 3, p. 110 to, to. Islas . .it further breakdown Of national total$ by sources ]

Internal ranxim .. districts, States

.

and

-the' If (States represented by single di,-

Filers in uAted in parentheses totals to, other

States shown at bottom of table) otal

30)

asolin e

31)

Manufacturer

.luitIlu g

~oil, at.

32)

's excise taxe

Tire,

(wholly

.1o, in is r!

rubber) ,

be, . and

it

r uhir e

1

1

'33)

s

Moto r

-hicle

chunsi,

bodies Other Iand

4) (35)

Ret

ot I

36)

ailers' excis e

OR.

Commercia .1ins.l

fuel

37)

taxes

No.-

Comonercia l

exi Da n

fueloth I

-line

to(38")

United States, total ---------- ------- 5.728 .657 3 .741 .161) 95,474 681 .320 1,154,460 56 .243 326,933 8 .838 19 .381

North-Atlantle Reg[- . . ----------- _ . . ... . 292 .729 95 1 109 415 159,039 17,067 31 1010 is F26 -533 1 40 Albany .- . . . . . . . . . . . (See (c) below)_ . . .. 2 .94 2 .578

7

60 295 16

:

1

1'

31

.

2 1 Aujust-_ . . . (Maine) . . . . . . . . . .

__

.11 1

1

3.1 1 36 96 149

5

1, 33

1 9

Boston. . . . . . . (Massachusellat- __ 37~963 33 .618 215 1 GOT 948 2 .065 3 .555 1 .2 58

Brooklyn . . . . . (Sao (c) below) . .

Buffalo. . . . . . . . . . . . . (See (~) below)- - : : : : : 4,01"7

5.293

20.238

'0

29

8.857

17,482

:01 4

1 464

144

1, o"

1 :211

4 24

5

713 192

'

5

3 Burli " thin _ (Vermont). . . . . . . 1 173 11 (*) 17 73 675 13 1 1 Hartford.. . . . . . . ~Gcmn.ficut),

'L~ 56: "

. ~32 10 71.111 2 .am

26 .

095 82 34 Maphaf POFbsmOt:p, : : : : :: : : . (Sao (c) N ma below)-- -

Hampshire) -----

66, 091

1 .767

41 .94 8

404

?1 54,660

18

5 .004

151

1 .408

25

446 6

59

3158 526

14

1,.id .n I had IF . Island) ----- -

e

e---

2 .874 2 .278 243 271

81 227

_ , 7

Mid-Att-tic Reef . . . . . . . -------- ui 711 691 93

3

2D,6!]D

4

72 23

94,

553 4 .1 94 46,392 796 3 .222

Baltimore (Maryland and D.C .)

Newark, . : ---:::: :- (New Jerxer) ---------

:.

84 30

112.19Z

:

26 27 3

59 .138

2:15

2 .393

5 7

3 :4? M16 45 .643'

1

Z .5 '1 2'

3.27 4

1,027 24'12

%

1 476

,

t'!"' p ! __ R'" 3' '0

04

1 "

6,

844 42

.

-3 7' 13 "'

127 ,

Pit 1h :: : : :: - 266 405 248 :077 : 9G] 3 .641 4 .611 116 6j 70 .7 '411'1

s Richmopd . :::: ::: :: lughia)--,-------- -

We,.) . . . . .. . . .

th"i"s1 (Dole

11 .058

481

211,1

' .49

1.51 735 1 .729

-3

60 2

(*)

5,149 1

10

o. 175

.ros... _ --- ' 9.I.. :: ::::-

12486:751

599

110 .922

22 60

1,242

Ul

15 .73i

1 .7 1 2

135 :671

..

2,679

23'

30 822

1

1 .2529 1 .95D

Burnagh

'

in . . . . . . . . (Alabama) ----- _-,

16

. 33

9

:712 44

1

2

117, 1 .686 24 3 .652 115 194

Columbia __ . .. . _ (South Carolina, . . . F4 .111 13 184 1 F, 269 275

251 2 .

W 68 1 27

Grxwr3bom: : : ::_ ::~ is -:::

""'i

17 .37 .

31 1

1 '

32,741

' ..

2 8 :'21 2

1,944

'2'

3D

43

1 :11

"

21~1 2

"67

J.,,on, . . . . .. . (Florida) . . . .... .....

"

7 :7 13 II : S 210

..

2. 1

Is

1 .830 6 .7 54 Niush,ilkf~ ------- _ (Tanniessums) ---------- 15 .600 11.904 89 307 3 .259 14D 1 .638 17~ 327

Com

tr I Regioa__ --------- __ ---

- '," '

394

, "' -

8,414 407 .782 7" 096 I'm a"

'3

995 1,7 6

Cmei ...H_ ~' as ar~ .Iel ~dd~ b1:j.- :._: :::.:.:.

Clarmhad. . . . . .

3"12 11 : 1

'0

,

I

116 :81 . 171' 121. :7

50

3H' 1 35

7

111

an

3 :117

"

215286 253

117

Detroit . . . . . . . . . . . . . thlichijim). . . ..... . . . 778,D99 40.579 378 -22,795 751 237 fin 6 198 M 2.

28 1

Indi

.

.poll . . . . . . . . . ilinditus) ---- 42,734 32.280 807 179 9,200 269 9 095 219 29

I .Micuill. .. . . . . . . . . ~KepjuVky)___ ----- -

%,kmzbuIg . . . . _: Was agm,.)

65 .927

2 .529

61 .952

1 .991

1

. 92 1

109

243

206

1,7,7 , 12 32

3

51 :31 .11971 16

53

II l

.

Mid at Region --------------------_------ 654,59 517,182 10,372 0,930 109,610

.9

7 58

So .

828 11110 2 .1 "

Abard.. . . .. IS th Dakota), . .... ..

Chic : : : : : : (S :. (b) below) . . . . . . .

D :r;W;

: : :

4 .468

380

. ""

2841'10247

:

3

7 .543 4 .1 214p

33

'

.5 7,7

2, 1`02 201 . "085'

30

204 247 1

. . , ------ (I-.) ------- --- -

Fargo . ~ ----- Month DMAA1a)___ :

7

1 : 12'6

14 723

3.053

105

21

2, 130

47

2,34 7

2,497

46 21

4

.393

917

135

3,

94

Milw.

(Wiscomn.) ---------

Crash . . . . . .

. . . . .

.

u . (Nebraska)

63,931 52.010

6 -

1

6

275

331

21

10 .662

532

77 3

87

4 .

2,867 See

146 25 .

22 3

St. Louis .-. . . . . . . . . . . . . . . .

St. Paul . . . (Minnesota) .

99, 34

55 239

924g,381 : 115 1 .24~ 9, 1 1,123174 3 13 ' :g , . 21 2

04

6

-11.135

403

1

162

174

7

2

40 1

Springfield ---------- (Sao (b) below) . . . . . 27.707 25.216

-1

27 2 .]A 272 3

:

005 123 120

Southwest R

-

1 .706 .746 1,626,149 42 .4511

18~129

18,365 1,645 86 326 2,157 7,106

A U" IAnn s

in . . . . . . ------ (So . (1) be Ow)

4,219

N 8 SIT

4 .09 7

115 53

9

25 .82: 121

4 . 4

812

72

2,290

2

94

2 :974

32 a93

1 1 3

611

82

Ch. 3,453

y... a . . .. . . . . . . Wyoming) H -------- -

Bell " ------------- (San I I

below)

18:320

291 .852

S:

267

275,310

2 1

7 .390

1 5

1 711

13

'"

314

1 :

19 . 92 7

440 42732

40

103

Do " ~Coloradi ---- -

Lit t"'BIWC 1. - Atka-) ----------- '.: -.::::::

37,533

34,790

24 .95 1

31 .731

- 31

'

I .

224

10 :4

17"

2"02:1 7

7

319

731

3 .131

'

1 S3 21 115

He. O'leam,.. . . .. . . . --------- - 607

' 3 11 '

411 9z 1 .095 82 3 :211 222 287

Oklahoma City.... .. (Oklahoma) 318. 125 3 : 756 " 505 790 3 .981 92

15 .

290 268 1 829

Wichit.. . .. . .. . ... .. (Kim-) . . . . .

Mostern Region --- ..... _ ------------- -

Anchorage.. . . . . . - (Alaska) ::--::

29,764

32

28 .55 4

385 .06 7

17

'3.

.52

(

I

_.1. 56

7

.'73

922

7

18

6 .497

1

3 .839

53,962

41

20 1

1 .726

12

194

1 .93

31

Raise . . . . . . . . . (Idaho)- . . . .. --- 1,766 1 .394

1

112 IM

134 2 1

13

L03

No 64

It,;. . . . . .. . 1011A a) .----- 711 587 2 56 43 22

' ..

7 49 39

Honolulu . . . .. flawiiii),_ _

Los Angel ear. . . . . . . . (See (0 hot..)::::::: 241 :21625 I.O .A l' 1. ]';1 -4

.21 1

244

1 .1 1

57 935

2 .'Fj 1 L5 .TSf 211 fiI313 6

932

Phoenix-- : : : : : : : : : : ~A irMI) . .. . .. . .. .-

Portland-- Oregon) -----

4 .414

359 21,3104' 32

212

479

14 4

12,068

'701 1 1, :071

428

158

114

1

4 7

,, 66

.a

.

. .

. . . . . . _ (N

..d.) . . . . . . . .

1 ' '

(.1 35 62 7

1 .

658 52 3 0 Salt take City (Utah)- - __ ----- -

San Francisco.- . . --- (See (a) below) -----

5~ 129

187 .172

" 905

170 .912 6,615

20 1

1,878

297

7 396

2.725

371

1 .

880

19 .521

64

457

3 8

3 7 Seattle_ . . . . . . . __ (Washington) . . . . . ... . 29 .356

7

'894 5 271

:

20 $39 308 2.745 133 10 8

OfficeP. of International operatio- . . . . . _ ---- 3Z2 --- 17 16 289 78 1 --- -

Oteft Rico . . . . . . . . . . . . . . . . . . . .

h .- . . . . . . _ . . . . . . . ------------ 3184 -------- (~j_ -- -------- 17

4

12

-------

H9 - --------)i- --------- F

Undistributed :

=I,chilsexi, and dfirpi eempt--- -------- ------ ------ ---- ---------- ---------- . . . . . . . . ------- - - ---------- - lob, '

.""

Oil. ..it . .- FICA

credit.' .. . . . .

.

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

Transferred to Grrv ;~~memf of Guam

----------- --- __ -- ----------- ----------- -------

Clissfirig ...at In, Ex'e . '_ lip s

fuel and all-Ail Fare. ad Harry -----

-1 ----------- ----------- I ----------- --- - -- - -- L

- -

:111~

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

-

C'Mor"i ----------

Illinois . . . . . . . . . . .

(c) New York

~d) Ohio-------------

.1 Pit . . y"'

.

IF) T'nes- -

428,436

408 .328

129 .678

W. 308

1 .675 :235

240 399

Tat.11 far late, hot a how. imen,

351 .

029

306 .323

.13 :1

T9 69 2

1 .190 59 016

. 908

117 .762 .5s

7

178

1

:230

I

33. "".214

4,151

IF ~ 059

6 .599

11.7 '31 . 23'

12 :768

36 '

"

: '.'1 4

9 .270

1 377

2 .612

989

07914

35 .272

23 .090

9,795

17 .523

30 .040

52,378

969

'21

2

.2

384

1 334

. 038

1 .306

1 .398

268

gm

48 1

4 56

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

areas-Continued

[in thousands of dollars. See table 3, p . 110 to, tax rates Ind Further breakdown of national totals by sources]

Riniiihils' IxIi,a ta . . .-Cm,ti ad Mise'llimes- ..else lose'

Internal re,imue regums, districts, States, and othe r

at

.'

,

(State, 'Ip--pled by smile district, indi" Teth.no 1 r oscau- Use of in. T MI .

cated in parentheses ; totals

For other State, show n

at bottom of table)

D

iel:,',Inat d .,be,,

.

Total

Oil

I'lirlyle,

fz

jim .1

Persons

t"Imme.1

air thave

'

lalion of

props I t

motor uOI .,.far by air

'at

: ilfti.Y by

(39 f40) (41) (42) (43) (44) (45) (46)

United States, tcitl_--------------- ----- 293,603 7 2 .694,942 1,650 .4" 515,269 42,271 Z9 .455 115 .752

Harth-A"initic Region, A .. --------------------- 16 .590 1 614 .079 276 747 157 .030 21,291 6 .4a 42.057

bary --------------- (See (c) below) ------ 1 .400

15'

3 332 :

44 34 4

. . . . .

. . . . . .

Augusta _ ---- (Maine) ------- -

Boston

* ------- Va_h ...it')

: : : : : : : : 1

:294

3 '95

1 :271

998

'3

45 3

56 .778

51

8.350

. . . . .

Ai 5i- 1(7*~ 2 .9(8'7)

B roak UpFI Iyn ::, : IS : ~,c~ bete . . . . . . .

.'O__ IS: iml-*wL . ~ . . . . .

1 .

3 .08683 --------- -

:

72IS 490

. D96

11,67

9463

63 .920

3,493

2 .97 8

113

3 .1195

05

Built (Vermont)------ ------- 651 . . . . . . . . . . . . 460

127

6 1- )

Hartford --- ~C an . i"t). . . . . . . . . . .

Manhattan-- . -------- S~, (I)tbeki.). ---- 1-

2 .175

1 .893

--------

F

162

385fiN99

80 .07 1

123 .147

151

80 .988 17 2 1 2 .929 7'

:17

A D03

Part... . th -------- ~Nie. Himi ... . . . . . . . 631 75

209 11 :

7

. . . .. . .. .

PIce,rd, . . . . . . . . . . .- : : Rhodaleland)--------- -

Mid-Atlantic Region --------

Baltimore ------

220

2

:377

43 09

287 .025"8

59,943

1 2

237 .

43,MA

17

10 .3

10 .03"

97

38

(

5 .1

34311

4,g65

Miami, ---------- - (New ( Jm,er') -------- -

Philadelphia S.a (1) be mi) ------- _

5

11A 1

12,

94

7if 1 .1 :~1411 19~U .123

02

a

7

185

. . . . . . . . . . .

54

1.

67

8;I

4.037 ~

PIft,bu,gh . : : : Is, 1.) below)-------- 15 .330 . . . . . . 12 .898 9 CIH

47 . . . . . .

.

5 v ) k : : :, : : : :

ichurood

. ..

(Virginia) ----------- 4,849 1 31 411 32,948 62

Wiimi,gt,

I

----------- Delaware) ------ -

Southeast R,g,o--------_---------------

11 7

27 . 337

. . . . . . . .

. . .

7

:52C

381 .160 25, '111*3) 80 DU" i :Hi,

3 .010 1

,

17 450

Atlanta --------------- (Georgia) 1 131 1*) 171,WS

110

.405 50, 720 439 1 .978

5

:665

" I

BimniI1h .1 .1b

~A aml)

, 53 :3 . . . . . . . .

99 .712 91,063

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

C., : : : : : : : : :: 5.352

G tiroln . put h Carolina)

Carolina) . ..

.2 :459

576

--- ------ )~ 4 :746

32 958

201 . 74

19 7 .

'0

5 .3D6

.1

I

M mi"'p"i) ----- I

. . . . . . 1 .931 ------------ 2 .504

4

64

laskaxi .a . . . . . . ' . . . .

N,,haille ------------- IF ime -

14 :~13,7 11If 11 . 593 25 9 1 12

35

11 - 7211

211 47

.54

1

:,113

Central Haiti- -------- _ ___ - 17 2.~ 131 200 52 941 so I

18,

.0~

Cierierifti- -------- isc.(it)

2

:739 33,023

:

25 382 413 7

Chastised -------- (Sao (it) below) --------- 11 121 11 111 1 241 131 1*1 it2

a

29

Detroit--------------- ( M

I ia i nd nappin ' ---:

. -------- (Indiana Z ')

:'

. . 5 7"1 . . . . . . . ---

:

42 .

1

:4

I15 .01

.~

194

5

3

21

1 .

723

1 6

Lou ------- -

P.rkwab

5 115

1 .572

. . . . . . . . . . .

. . . . . . . . . . .

7 3

11,3 1 9 .983

3

12

---- ,

2

I

1

.)1

Mid ..

A

47,574

' 23 '

.

-

7

1 .0 1

.5146

348,94 1

664

181 .927

3

V.53k

. . . . . .

--- -'

1 .970

(1)

5 .21

Chicali- Ba,, . . . ---- (Sea (b) behna) ------ -

MO""_'_- ----- F"a)---- --------

1 1 : 3

4 .174

: : : : : : :

------

2407 .98 7

.654

1124 .46 . 3157 100 .487

35

. . . i .000

S .

084

is

4 .

336

Fix ------------------ (North D .k.1a)_

1- -----

6

A ' '' -------- - - --------

I-)

px.hI__- " --------- :---- --- _ (Nebraska (Wisconsin)) ------

13 4

2 .54

: : : : : : 7

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

:90 1

69 .354

24 .542

67 285

iii

24

V

_ ---------

35

-

3

St. Lou --------------- 141 1 I. IU8

1

:

9

1 1 1 1 11 1 11 3475 4 13 1 .

.

3

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

' :

1

. . . . . . . . . . . :

33 $77

"

6 1 is 3 :7,

1 .049 113

1

_:

'I"

- (Sea (b) bakes) . . .

SO I

.

Southwest R --------- -- ------- - ------- 2

.712

77,064

115~419

Ut 335 79,050

69

32 .651

5

1,251

1

5 .603

( .1

29.52 2

Albuq . .,q. .. . . . (Nma MO...)----------- 2 .779 ------

", 190

14 1 1 . )

Austi-----_-_---- (Sea (1) below) ------- : : ~

Cheyenne -------- -

Dallas------------ -(f')pbe)Ipw_-). ... . . . . . .

11IJ574

310

"

: : : : : : .: .: .: .: .:.: 25 . 56 5

754

47 71

2 .266

10

1 1 117

8 .3101

1 5 311

49

1 .111

89

5 .

Be.... ~A

L R

~ikpfwdril) -------_----- -

ittle

1 :63 1

3 3"1 . . -

76 :

3 .117 68

4~ :

492

1 1 1 1

8 :, .3

32

3 5

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

1329 15's.

I New Oil- ---------- (Louisiana) ---

2 :77 7 Ifi

.340

:.,5

394 57 191 9 .236

Oklahom Cit ~Okl`hmaa) ------- 13 .193

1 194

1,231

2 1 11

(-1

Wichita- Ken... ) --- -------- -

Wester, Region ------------------_--------- 1 . : :

L444

50 403 1-)

8 :

396,09597

5,59 3

21 111

a

" .13

(.)

6,641

4

3,724 17 .8113

Anchorage - ------- (Alaska) . . . . . . . . . 55 ---------- 54

2 :

if.

1 .311 at 560

B.Oc_----: ------ ~Idxhl)--------- . . .. . i .

Helena Meet,

1 .94 7

1 .31

------- 11 :36

. 3479

21..12

72. . . . . . . . . .(1). I .4)

Himol'i 1. )

Los Angeles- (Sea is) belps) ------- - 14 .3E)f "i :' --- -

7 :57164

92 3 131 :2'04' 324 ."' 71~6 3, .46 2AI'S

4

55 1

Phoenix.. . . . . . . . . . . . . MO...) --- - -------- -

P tl 0

4

.767

111

1 92

41 413

105

41 1

124

11 323

4

or and. . . . - ------ ( 11inift) . ---------- - 31'43 ZI

Re .. . . . . . . . . . Nmr.d .)_ ---------- : : :

S-11 :Ake City _ ------ (Utah) . --- -----------

1' :~87

1 .779

: : : : :-_ : : : : : : 12 .51S

9 12

.

14

41

.

44

1 5

. . . . .

: : : : I

* '

V W

Sao limens. ------ _ (See (a) ls,law)-------- -

Seattle- -------- - .shmgI .p)

18 .690

2 .50

. . . . . . . 169 0

1 324

131,015

45,677

20.2968 2 .029

3,11

2 .~

41

7 .860

64 1, )

Office of InternatiomIl tion 71 :1112 64 2 .812 110

Puerto Mon .- --- -------------- 1,789 ... .. . . . . . . . . - . . 1 : ,7

Othm ---------------- -------- 6 .313 64 2.882

i

iiii

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

UmIrd,itimed

Fadmal to, denotil, and depository receinse --- - ------------ -- -

Gasoline lubricating oil to . and excess FICA vadils7,

T,anste,red Go"mount Of Guam ------ -

Withheld taxes Of Federal mriple,ael . .. --------- ----- __ .. . . . . . . ------ - *'~ -- ---- ---------- ----- -

Closing

"

It to, E .I-t-s-alion fue l

.ad il-An Fare, and Ns,y. . . . . .. . . . . . . . . . . ].. . .... ... .. . . . . . . . . . . . . . . . . . . . . . . .

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

Totals to, states not shown aboue

,nia --------- - 32 -l 1 252 065 154 219 55 010 114 1 .111 1 .11 1

Oil

, : _I ~

235

:

254 4 41, 8

838

:

13' 23 2. 5

097

:

00 556

N8 .445

:

4 005

20,356

5

6 :12,325

336

0mo 38:008

16 .59 i~ . . . . .

~

9 ,

85~

622 M 7

~

1

le) P :,n,,y In,, as ------- - J' j"

1

T ------- _

2E .224 i ----- ~ :7 : : : :

47 .184 . . . . . _ -----

. 1 1 :839

74 .350

12

20 .0.M3" 23.691 232 IJ53

2

5 .14G 4 .3203 70

106 107
Table I.-Internal revenue coliections by sources and by internal revenue regions, districts, States, and other

areas-Continued

[in thousandsof dollars. Sectable3, P.110for Writes andfurthe, b,rlkdo,n of national totals by sources )

Internal iticts,Slatut,a" of 11,11 Sit a', ".,,

.. . . . . .

. ..

at .

" '~-n%

rd

in.-ted in I Is 1.

shown at bottom of llble~

' Narcotic, an reariierei4_a_

d

in

c',,clude, f

.P.O.ox

level

(47)

_Gainperate d

Ixon," device,s

(48,

W.Ec'i?g live __s

c . p IN ago "

turne r

(49) (50)

_

n

hrjb*,g'1, for v. 'os

(51 )

Us . "I

-

ax o n

11

',raf t

I

:ie

(52)

I -Private

~updlli o

,1

. "'t-ot

"One

,

(53)

I the r

54)

U

ad excise

Is.

(55 ,

Uh It'd State 1, total . ~ . . . . . . . . . . . . . . _466 14 .84 7

__

glc~r of, ___ 348 4 .315 157,27 _ 9 20 .37 56 . 5 88,022 7,9,1"

-Atle, c Region --- .. . .. . .. . .. . .. . . .. .. I317 1 ;-S 94 I Z wl T'ia 16 491 63,744 72,473

lbany

1

1 982 2

:

-- _ ,

1 4

2 Unstop.. .. . . . . . . . . (Mall .chol.tts)

1- 1

I 1

------ 134

12

62 2

2 I 11

24

111

8 3

1,378

lb

871

4

1

-

2U 2

1 1

U r

... kly ..... .. .. . .. . So. , c) be low h 80 1

: '19

3 ------------ 91

~

1, figg

off IF, . .. . . . . . . Sao e) 1 ------- . 1 14 2 . 1 11 1

--------

49 2,191 He Hartle 'fingto n . (Vermont). . . . . .

rd ... . . . . --- (LIerecticut) . . . ... . ..

) . . . . .

64

' ~ 4

1 .718

1 ,

man 6i 779 681 3h,94U

hIlt11_ _ --------

6

11 1 ., 3 .322 5,207 24 .048

61-906 _I`-ZO 5

u __ ~ : : : : :

H

New Hampshire)------ -

Provider, R - of - tar an it )

h

1

.

1

6

. . . . . .

4

6

37 8

423

21

14 7 ,

9

4

-5 3

am, 26 2 --- .

Mid-Atlantic 4 12 3 2

I'

.

21

N

993

5 .8j5 4 .

11 44 11 3 Ballonou. . . . . . . . . D.C .)

Nmva,k~ ----- a

.

lariat)

1 413 1. 1If1 7 0

1

1 .

4 .2 17

82

3IN

11iHig1

S4 ~

I g"

~4

1 53

0 3 8

ph

flxdalr,W~

--- See( or brio ~

; : -------- 11 4 1) 48 7 .096 308 3 .135 943 - 1 .868

pit sough (Sea to 3 ~7 52 545 . .. .. . .. . . 1 71 916

R .cileve d ;

6 85 2 31 5 . 66

13

:

'

ty, :

ee Th mmRtU Delaware). . . . . . . . .

-at Region --------- ------ ---

1 3

33

-----

2 .150

TG 6

405

1.,

21 .705

56

2,704

701

3 .530

11 1

1,7 18

M .Ul

, ZI 451

---

9 205 11 3 "

' 1 2'

,

1S

3 37 5

13 :Dl

: :

Columbia (South 1

11 )

813

1

~ :

h,

2 1

2 :g

1 13~ 53

I 2

147

1. ,

1 D

,

1

7

T.O7

Gfeemse,re. . (North Carolina) ------- 5 3

~ . 1 I'~ : '47 1'

.7

lu,

2. GZ3

Jackson . .

~F'Ivl,idx) as "'PP?_ . . . . .. . . . .

.

.

N DA 3 14.1 ' 71 1

1

40, 11

If

. 1. 1. tH91 -1,51 , tif1f

Nashville. . .

. . . . .. .

(T

'preal'o) ------- 3

7 ' '1

29 2 :944 li. 306 200 - 1 :050

thirst R.

"I" -----------------------

~S" 'd) below)---------

1 7

1

677

178

2 901

83

22,32 9

3,435

%9

369 1 : 8

2

2 4499

1 .614

700

518 .563

-6 .

cleveland So ' '. (or below).

I

"

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

1 4

3 4 ot

------

(Michigan)-- . .- 4

1 .

I1 ( 1 .

26

R4 05 262" 4 1 1:62i

~Iudl na) ----------

I'll

Lou id 418 4 .287 194 997 1 12 ' 311

Ill.1 11 Kentucky)-------------

ll,k=- (West Virginia) . .. . .. . .. .

4

1

111 2

6

%

1 "

1

. "!11 '. 13~

150

59

2,,

12

1 :46 2

40 7

bf _ : : :

West ' ---------- -

431 368 19 221 27,564 4,874 6,001 3.435 44,400 Aba,dmp.. . . . . . f~6 15i6ii) . . . I ------

I "

1

5 696 37 2

7 2

1he,l 1 2 ... . . . ~Sm His) but..). . . . . . . . .

WnasM

2 1

2

.7

1

3

1

7 4

17

6Z .699 4

41

3 .17 7

115

2,538

111

2 .092

11

20 .73~

1 11 1

F .rga. (North I I

2 'gl .2 5 'S '

Mili a~We

Wisconsinl~_ .. . . .. . . . . . .

I

", 4 1 3 111 111 7 114

1 "

cb'asha . . . . . . .

Dinah . . . . . . . . . . . .

. N

3 4,2

1 b 1 :&~' il5 1

41

if,

F :710

St. Louis. . . . __ mlesou'O .- . . . . . . . .

St . Paul_ .. . . . .. . I

. . . ... ..

2

1

9 1 4

11

4 .525

~ 131

26 8

1 111

894

1 416

64

4 1 1

42 .55 7

1 1 1 Spri.ghold . . . . . . . . . . or, 1 7 3 34

,:a , ~ ~ . . .... . ~ ~ 5 0

137 US 7 379 24,853 2 .212 4 .359 4,759 20 .029

A a- .st-_ f) 'vkw"___ - . . . .

----- '

3

31

a

5

. . . .

2

1

138

6 1 0

4,864

5

5

1,197

7

3 .03'

7

2,266 - 1 86

Ch ~Wyrrroiro --- ---- _ - 1 " . 5'1 F ,

Dallas . . . per- :: : :: : Sao ) be]..) ----------

1

40

. . . . . . .35 _

1

1

3

14

51 0

7 1 19

56

------ .

33

. . .. .... .

9

145

3

-1g, a,

38

1

D .,yer-_ . .. . .

. W ine'

.d., -------------- 45 ~8 f .)

:3 ~

2 u

~S . ...

339 15,86G Little R,ck rA,kaosas .., . ------ -

New Orleans . . Lllililll)----- . . .

I'l 2,112

I

B 1 : ...

1 699

1414

I IS

1

: : ~ 1,058 -2697

Oklahoma C ty Outhuma)

W .Wh__'. Kansas). --------

7

9

5d

50

1

f.)

17

2

2 .74 2

2 ~ 044

282

122

12 1

103

2

Be"' "'97 "5

,star, Region _:. . .. .. . . 159

10,

4ar 37 2 .102 24,68

6

3 .103 3,733 1,95 15 .986

Anchung. . .. . . . . . . . A

B so . . . . . . . . . --- lldxlv:H~ . . . . "14 1 .,

3

(.1 1

7

f

201

1 '002

17

8

50

3

1

44

41

- ^Z2

- l

Helena . . . . . . . . . . Momte .a) . ..

Mawaii). . .

1

9 16

4 10

6 54510

64

57

1 ~

107

,

1157

'a u

1,62 9

to, An gol. . . . . . . . . (See J .) below) ----- 11 4 7 .115 1.211 2 .913 G . (159 21 .37 5

Pho'ni, ~Arlzona). . ----------- -

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

12

3

~I

221

g

37

I 2'D

3'289

'3'

111

'2

11

91

3

- g10

(Nevada) ----- ------ - . U . .

2 9, " 3

1 1 14

3 1 -

4, jH a .

12 1

Is Latin it)

Sa - ------ ---- --- -

re franc I ~U

,'x ()a) thadowl140

163

44

18

(-)

5 5

2 7 .019 " ----

39

----- - - ~13 3 5 . 1 2

Seattle-- - OlVanhenglun) . . . 19 2 4 41 2 .311 111 294 410 11 .13 1

"I '

.

. I lot.; on ps' .tlo. .

- - _

U'3 f . 273

709 4

For'

to Ri- -------- - . - _

ndi,t,ibu Oth "ied~---- --------- - - --- ------- -

i ~~i : : : :_ ( . )

JQ

-------

IF -------- vj- 709

~

~42

0

-54 7

Find -I las deposits ',it do

Gasoline POV .. ...i

Ju

bricale, is I an

d

----------- ------- ----- -- --------- ------------ --------- -------- --- - ---- __ 36 .71 3

credits' - _ . . . . . . . . : . . . .- ------ - - I's

rale dtoG.vern,an1ofGuarr . . Wdhb . . . .. .. . . ----- -

I to faces of Federal employees .. . .

Cle,ri.la-untfoil .-ant .. .a ,i,lic

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

and

oil

_A , f a,., and Navy . . . . . . . . ..

- ------ - ------- - I --------

- ----------- I - ----- -

S

6 1

C '

H.'ria-----------

Illinois ----------

:is pm.~"Yllarli. . . . . . . .

ft To - --------------

Miscellanea., excise tive-Garti ... it

Totals for state, not shown above

88

872

2117f

5

39

"15I

211

202

14,242

20

10:14'.

IZ,054

2,239

35 :1.7 '

C

369

1 li"I.7

2 :~111

2

24. "

2.449 W3

3:013 1

, 31

' 7" 2 .17

62 :100

996

! :11'.

14 .938

28,735

.,I41

Table 2-Internal revenue collections by sources and by quarters

11, thousands of dollars)

Oeirlo, ended

Source of evenue

Sept . 30 . 1971 Dec. IT. 191 . 31, 1972 tons 3 .. W 1

Grand tell, ~ -------- ------- --------------------------- _ --------- 45 .2 2 754 . 41 .666 .893 51,768 .015 70 .168,070

Cur P. ..t in. i ec . . . tax - ---------- ----------- -- . . . . . . . .. 6,35b 439 6,905 .071 7 .100 .505 'Z563 51 1

Individual income " no I in ployment trial, total ----------- * ------- --- 453 '09

5

33 21,111,111 lu, 14S: .

IF . ~31 . 1 1 1

income tax not Withh.1,1 and sell cne,lmmenl

tax

_ _

4 .701,304 1

U ' 2

1 11 33 1 1 207 . ~6 3

1 eare. m. withhold and ld-.g. and dis .biln, -wite 15

Railroad at r.m.

r

I- . . . . . .

21 .23,11 11 4971 27 1,3 I -:

253 .2p'

~2 : 30: 1

268,1'

14 :462 370

2 0 159

Unemployment im- 148 .87B _95 429 389 .927 389 8,14

1 "late fix ------------- - ----- __ -------------- - -------- - -_ -- 84i .97G J16 .923 I 73O,iU4 IJ33,21 9

uift to, ------ -- - ------- ------- -

Exc'sa Is'es, tot .] -------------- ------------- -------

~3711 :1 1 7

4 . 18

95 .8ral

4 .59? .355

100,090

3 .G881136

107_166

4 .024 42 E

Alcohol taxes, total ------------------------------------------------- 1,240 .02 5

- _ -

1~366,50`)

-, _ _ -

I . 180.054

- _ _

1,323 .413

Di't'lled spilits .- --------- ---- ------- -

- - , -

fell ~'_

6 I

_ _ _66 . j~~q 8

1

' -88 _

801

-95-63 7

,v -, -clmls . unc. - . - - - ----- : : : :: 31, M. 2 52~Qtl 462

. . 4 '

IT .. . . ~::: : :

. . . . .

.

. .. . .. . .. .. . 315,061 274,814 251 .036 31u352

Tobacco taxes, total, ----- ------- ----------------- --------------- - 525 .221 557 .167 527 .84S 531 .03 8

Gi 3~af "a .to ~ ------------------------ ------ it FZ4 6 U]2 .ili 515 .252 5F2 1 2 a

C 9 13 .416 14 .420

" .1

14

14

14 1

Other - ------ 30

5 ' 0

4

.2 hS ,

Manufacturers' excise taxes, total - -- ------------------------------ --- 1,978~1~29 1,839 .286 946,919 963,823

Gasoline --------- ---- ----------

-------

gi3,178 17! 12 I 1

9 u

4 3 1

L In,mating od, mic - ------- - 21 111 . . .

:~ '

4

'

: h ~

~7 "

: ,

14

gpil

Twel (voolly aI in us, t at , b be,), I a 11 tubes, and he, 6 , on en,

F9, ' :3~

is ~ .05 4 41 1

1

11 4 1 1

Motor vehicles, chassis . thecle,5 . part

s

aid aCC'S... jo$~4 . .

r' . . . . . .. . . . .

Othe- - - ---------- -- --------- ------ ------ -- 14,288

657 .50 3

16,828

:

114

8 .561

' :~ 5 ~

16 .56 5

Raiders' excise five,, total ------- ------------ ----- --------- 67,273 89,796 85 .218 85 .5 6

Noncomoneucialavial:.,.,

Noncommercial a is fuel Her O~Iwe

2 .94

4 57

2 .021

4

2 .07 4

4 12

Diesel and special on 'to, Ionic . .. . . . . . . .... .. .. ... . . 60 .311 81 :346 78 :3M'

. : 5

B

Other',. . . . . . _ .- ---------- . .. .... . . .... 7

Miscellaneous excial taxes, total ------------- - ------- .. .. . .. . WV3 743,373 614 .538 694,40 5

10%lon,,intind *61bly, ,,,rhxpge services . . . . . . . . . . . . . . . ... .... _W T15 51 EIZ 3116,80, 411 .131

T

'. 'ert .

n of cars,

. .

Use of in e nationrl air t I Mcihfes* : "' :~'1'7'

128 .76 5

14,321

GG? 128.

4"

1', 1 g

o

il :21 , ,inspoTl, ~

T on of property by at-.. . . . . . ... . . ... . . . . . . . . 7 .132

6

3

7 .470 7 .86 ~

Sugar-, - ------------

Na,coti-edrelfbians,nei'ad

C . .n.apc, .'cit gaming du~i,es --- ----- ---------- - - --------------

21 .46 '3c1l

13,337

~2 :3

11111

505

20 .387 72

326

13 .1112 13

680

Wagering O . . s

Occupational --------------- ------ 131 4 7

wagers . . - - ---- --- -

ll

'i"*"

"s, I

In motor "n --- - - ---- ----- -

8 1

,

71 13 1

1 .4 .

12 ?Il

94 5

28 588

I ~

Use ., r 31,31 7

Private loop or n civil er-11, ---------- -- ------------- -- -

t

'an., re

income---

__ ------ ---- -- -

:'.~

1 21

, :

1

J15",

4*11 1

1 2

1

Othe . . .. . . _

-------------------------------- : - - 2

I :j~,

15 .042 14 .635

:

3 7

Uncl.aa,1,,d xciarla.es . . ------------------------------ 83,346 ? . 223 333,5-7 360 .M3

109

108
Table 3.-Internal revenue collections by sources, fiscal years 1971 and 1972

[in thousands of dollars)

110

S.. ...furninu .

G .. . it total, .11 so... . . . . . ...... . .... ..... . . --------------- ------------------------------- -------- 1_191 -7 11.

Corporation t."'. total, ~ ----------------------------_ ------------------ ----- -- ---------- --------------- I - - - 30 319-95 3

is---------------------------------------------------------------------------- E . ... . . ----_----------------- __ ------------------

Individual income ad employment taxes. total ------------_--------- ---------------------- ---

incom: tax not withheld and self-employment tax ------ . ... . . . .. .------ .. .. . ..ta,o in ty

ax with aid and old-arg, and disabili insurance , totOJ- it . . . . . .. . . ------- ------------ ------- Railroad n ---- --- ---------------- ------------------- -------- -

Urinamplentair 'nive

f we, at any time 11 each of 20 calendar weeks , m Paid ate, of $1, 500

'I I more in any calendar quarter taxed 3 .2 percent an taub - millim, -I -age' . infectir. )In .. . It 1, 1 72_ --------------

Estate is,, graduated rates from 3 Percent a, first SSADO of net estate in excess of 1IGO)OCIO exemption 1, 77 Percent 1, otion ev SIDDID10 .0100 ; credit 4 lowed lot State death I—------------------------ t to., graduated rates train 2% percent on first $5 .000 of at jift,m access aii~6665

IUo.DDO

.1u,wn to, tax donee. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,ODO : $3,00D annual a . .

h

----

Excise taxes . total------------------------------ ---------------- ------------_-------- ------ ------- ----

Alwhol tax s, tot a ------------ _ ------ -------------- ------- I. . . . . . . . . . . . . . . . . --------------------------------

a

U, , P

,it ad . nits Issas, total . . . . . . . . . . . . . . . . . ----------------- . . ... ... . --------------------------------- Imported replaced by Customs, fates same as domestic) ---------------- --------- ------------------------

per proof gallon or me gall .. he. below proof'.

. . . . .

Domestic, $10,50 _, . .. . . . . .. . . . __ . 0 , . . . . .. . . . . . . . . . . . . . . .

par proof gallon- . ---------------- ---------- Rmtilm . I taxe'

-------_--- ------------------------------- Occupatilot int s

hmemerage manufacturers of spirits. SZ5 . $50. SIDO . per year. .. . . . . .. . . . .. . . . . . . .. . .. . ..

Rectifit" :

Less than 20,TD, Prrf gallons,2II1,10 per year, 2 ----- ---------------- ------- ------------------ 20 .0o) Proof If I a, a,,, Fintrie w

Retail dealers in liquor or med,cma it ., Wholesall liquor dealers. $255 per year . ., . . . . . . . . . .--- ------ ------ ------- Marn, actures of tills, $55 per y . . .. .... .... .. 7- ------ ------------------------ -------------_--------- Sitimnix, penalties etc _ ------------------------------------- ------------------ -------------_-------- Still$ a, condensers manufactured. $22 Inch_ --------------------------------- -------------------- ---- __ ----

Wines . cordials, etc., taxes . total ---------------------------- ------------- ---------- _ ------ _ --------- -------

Imported ` it 1, fiohnx,. rate, . .. as domestic) ----------- _ --------------------- ----------- - - ---- - . -

~ ''72 a

. . .. r a

S I I

as

can to .67 cents. $2.25 per wine lis lion ; 3packfing w ures . $3.40 ; artificially carbonated win $2.40 liquinns cal$1.92)

U . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------------------------------------------ ,cap.,,.

alta . . . :

Retail dealers in wines a, in wines and bell . SS4 Par y -rn--------------------------- ------------------

Wholesale dealers in wines at in wines and beer, $225 par y. . .. ... .. . . . . .. .. .. .. . .. . .. . .. . ..... . . . . . . . . . . . .

Be., Use., total ... ... . . . .. . . . . . . . . . . . . --_--------_--------- ------_----------------------- ----

Importful (,10ected 9 by Customs, rates ..I a . domestic). . . ----------- ------_---------------- ---------- Domestic, par barrel of 31 gallons --------------------- . .. .. . ...----- -------- . . . . Ocal'a,lionat taxes :

.~,,,:!s,J1j15ppa,Y ... . . .. . . . . . ------------- ----------- ----------- - ------- ---- ::: :::

'Do barrel 2% 'Ts 0 ----------- ------------_---------

Retail dealers Who 1, bear . $24 per I-(include, limited retail dealers in wine, ., be.,, 1220 per morfih)~ _ .. .. . .. . .... . ...

linall. deal .,, in beer . $12 per ya,,_ --- ---------------------_------- . . . . . . . . . . . . . .

Tobacco taxes. total . . ........ ___. .. . . . --------_---------- -------- ---

Cigarettes, total ..... . .. ... ... .... .... ---------- I ------------------------- --------------- ------------------

Small (Class A) $4 par thousand ------

Large (Class 8), $8 .40 per thousand, tx,c,~17 W lia.'g, -S-4, paitth,au`._Wd xh -2- Y-,- c- b -f--- fie n P,thereof ------------------------------------------ ----- -_-----------------_------ --------- ---

.P.Y. . .ta -_----------------------- ----_---------------------

Cis-, total . . . . . . . _ ------------------------------------------ -------- __ ---------- ------

Large ciga a, total ' I ------- --_--_--------------- _ ------------ -----------------------------------------

A %re

-

l2ng Wto --- not over 211 cents each), L2.50 per thousand --------- -----------------

121~: 8 O,ini eft, not over 4 cents each), $3 per thousand -------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C1 .1 C (0- 4 cents. net .,1, 6 am' Class ED P", !"T"n' --------------------- (Over 6 cents . not over 8 cent. each $1 Pat housa it - ------- lg~lhj III par thousand . .. . . .. . . . . . . ------------- ~:: : : -------

San.'Cla",. F 1'5ca".'Ii~ is - $15 par thousand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . ... ..

Class G (0-20 ... Is each) S20 par thousand --------- ---- - --- --------- ----------- ------------ -_ 11 cilia" .75 cents per thousand --------------- ------------------- ------ ----------_-----_---------- ---

=,.sit. . .. . .eit-s,c iga-,-e-6 . -6 -pa-p-e-r-s-a-1-d _6g a-, atI e- I-_bI_3_. I co- I-le- ett-d- -b-y-c- u s- to- m--s-.-, -a t.-s- u__ m--e- -ai d-o-m- I- s-lic_y--------------

"ga ------------- Misalian- tobacco. . . . . . . . . . . . . . . . . . .

Cigarette papers and tubes, papers one half cent per 50; tubes I ant par 50~ --- _ . .. . . . . . ------

Stamp taxes an decuments,othm instruments . and playing card, total" ------- ----_--------- ----_-----------

30 .313 71 S . 95

58

140,671,11 1

26,209.943

1121 444 .080

:043,f7 1

972 .409

3 .352 .641

431,642

16 .971 .85 1

4 . 9111) . 492

3,515 2 .4.1

.703 " 5: U0,

25,001

53

J a6

10 .572

503

5

40D

2

177,273

17,259

157 .270

2,538

206

1 .107.722

584

1,097,I .657

17

2 .826

638

2,206 .585

1 :91 :5121

2

I f

12

I

54 .77 5

54rogs

I 419

1 10.996

.171

0

.957

21 .577

34 .927

.446

637

so

765

1 .5134

Fiscal year

1972

(2 )

209 .SS5 .73 7

34,925 .546

34 .916,132

9 .41 4

152 .593 .187

27,710.985 122 .785,357

1 .072,77 6

1,024 .069

5,126 .522

363,44 7

16 .947,036

-

3 : 7' '0 : 9.

2,9 5 75'8' :722

27 .163

259

71

212 12.11 6

646

5

550

2

181 .223

17 .547

160,150

3 .251

274

1 .167 .863

6.539

1 .157,74 5

13

2 .87 3

69 2

2,207,273

151 .153

5

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

54 .173

52.989

493

1 .822

10.215

9 .275 22,585

4 .916

3,683

1,12G

58

779

1 .110

5r3

Table 3.-Intemal revenue collections by sources, fiscal years 1971 and 1972-Continued

(In thousands of dollars)

su.-frovem .

Manufacturers' excise t . .e,, tatill ----------------_ ------ -------------------------_ _ ------ -----------------

Gasoline, 4 cents par gallon . ------------- _ -------------------- ---------- ------------ . . . . . . . . . . .. . .. . .. ..... _

lubricating oil, etc

, 6

L ants pet gallon ; cutting oil, 3 cents per Allen 23. . . . . . . . . . . . . . . . . . . ____... ... . . . . . . . . . . . .

has'u."hall, . at in part of rubber) inner tubes and tread rubber Is :

highway type,

10 cents lill pound otien, 5 can per pound except laminated ties (other than type used an highway

velre

'a ----:

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

1 ... I In"U', It D ~,`npt . . . ... . .. . . .. . . . . .. . .. . . . . . . . . ..

T-d rub at, 5 cents par pound . ---d ------ _ ----------- . . . . . . . ... . . .. . .. . _ ---------

Motor vehicle., chassis, bodies, parts, an acassonas .

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

T-Part,Pk,-.7.`dJ I,, lhaue' bodies, is It, ., 10 percent ----------

and ame-res, for a6lemobiies. trucks, etc ., 8 percentRadio and television sets, phonographs, am

75

nents. etc .. 10 Pmant25 . . .

fi,firiyarator,, trousers it . ifit-condifiDners . etc., percent ; self-contained In—--- --------------------------------------------- I timing units, 10 percent ... . . ... ... ... . .. . .. . . . .

Plast it, gas, and or appliances. 5 perceirt"__ . . . . . . . . . . .

istX ad a .W..

Phonograph aceirds Par 10 ptincerIA ..t ------------------ - ---------- ----- ------_--- ----------- ------ . ... . . .. . . . .

Musical instruments, 10 percent"----- -------------- _ ------_------ -----------

Sgrt,' F h pod' (other than fishing neds, -els, etc .), 10 percarill-_ . . .--------------- ------- --------------- if its, -I ., It,., 10 percent ----------------_--------- . . .. . . . . . . . . . .. .... Rulums and It. achme., 10 . . . . . : . . . ,to it . .. . . . : . . Electric 'light In . ba an tubes, 10 percent I . . .. . . . . . . . .. . .

M (other than Pistils ad rghte no aut~,,,dgeli.

- ecrental Pencils, Pa., 10 Percent ; I i~',"11011ce is Par I ------------------------- I ----------------- glpensoen,lir) 10 par at (Ia-, than Ill' . . . . . . . .. . .

Matches .2 cent perthourrand butnottor exceed 10 pence,tof selling pfice) ;facy wandit merwred stems,51h cents per thousand

Retailers' excise taxes a . total------- .. . . . . __ ----------------------------------------- . . . . . . . . . . . ----------

Noncommmuccaal :viatio, gasoline, 3 cents pargalkm--------------- .. .. . .. ..

fianainmencl

v

istron fuel other than gasoline .

7

cents peg 41flon- .2.. _ . ..

. .. . ... )

..at and special moZ tuel,,4 cents per gallon (in some instances cents per gallon) ------

L.unw, 111 . 10 Penan -------_-------------

1 . . . try etc., 10 per III --------------_-- ---------- ------------ . . . . .

Furs,

Toilet

Id

pop

Pincent

. ..tior,

. 7 --------

w-Weent . . . . . . . .

Miscellaneous excise taxes, total . ~ -------------- _ -----_----------_- _ . .. . . .. . . . . . ------- . . . ... ___.. .. . . . . __

Achnisso., Issas . toul I --------------- -------- ----------------_---------- ---------------- ------------

Theaters conafts, athletic contexts . - Admissions, I

seat "'

to . It 10

c:tcts

. or major fraction thereof of the invount paid in excess of $1 -------------

Lease, of base, a, sea , tric or of the meant far which similar accommodations au, said . . . . . . . .

Real gardens . cabarets, etc ., 1 010pance-t of total paid for admissions, somim3. htc_ .--_. . . . . . . _ . . . . . . . _ _

Club due, and initiation fees, ZO Percent (it dues or fees are in excess of h

0 P

$10 per year)In_ _ ------- _ . . . . . . . . . . . . . . . .. . ..

Telephone and le mypewnter xt ange services I percent ; wire star equipment services, 8 ..e. 1

afli ; .15ppiacinit,hr, ich was increased from 5 percent effective July 1, 1970) ---------------------

"u"IUNIZ '!"'o"'arby,

. ra

Fiscal, an 11 Pa .

Use of a ternational air travel facilities, , $3

Sugar . approximately halkent per pound ------- ----------- _ ------ . . . . . .

Narcotic and marihuana, total'-__ ----------------------------------- _ ----------_------------------ ------ . . . . .

N-ti.

--------------- ------------- I ----------------- ------------------------

Manh as as --------------------- ----------------------------------------------- ---------- _ . .. . . .

lot .-* 11,111 Intinlia,$11 leldinvia,pro year, POP,, Alay or t.10I .Pne, Y1101 . .

. . . ... apP . . . led

Col.

a

drivices, $250 Par device Per Yea------- _ ----------- -------------- _ . .. ------- . . . . . . . . . . . . .

Wagering I .-

0tficc~u~p:tional tax, 1 0 S Pei year- . -------_-----------

Use Ia. , le,cmill.of mount vi.aad_ ----- -----:::~

L., ana" highway vehicles weighing over 26,009 P-los . $3 per 1 .000 Pounds put Ia ., iml-flumint P1 .111-Ins, =t,di . . .. .. . .

civil aircraft . V~ per yea, with an anfifitions, 7 ants per Pound on nontur me engine power.6 over 2. units, a, 31h

it

cents per po'a

on turbine engine Powead . . _ ------- -------------------------------- ------ ------_----

palest, buttin and filled cheese (imported and domestic) . process at ,...start butt., ad imported .1. inalti.nnit, -1. .

Firearm' transfer and occupational taxessr. . . . _ _-----------------_ -------- . . ..

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

Interest iqualization . . . . .---

Fit, ,eng. insurance---

itate foundations .

Net investment income, 4 percent- it it, usI

thed Persons - ------------------------------------------ eii iniliukw ir;Ki4if it ii percent, foundation managers fit applicable) 1

'7'nf,'~"1,N`d' 7

L..... bui.rint.~Q IS on -,it. .. . . . . . . . . . * ----------------- ent --------------

Taxable ..p.nditu .. to d.tim, managers (it applicable) less of $5,000 or 2-h percent of AmOu I. . . . . . . . . . . . . ... . .. .

Failure to file certain n :afarsfion (aturns"'. . . ---- _ -------

A-61. penalties i

as

It to annual ,parts ----------

Unclassified excise I-,_W P ------- - -------------------- . . . . . . . . . . . . . . . . . . . ------- ---------- -- - -----

6,6u.799

3,547.618

8111185

541 .840

23 so

28 037

1,695 .112

615 290

94:07

129

-10

7 .220 - I

1

-30

14 .Al

-12

29 .494

292 .1(44)

Fiscel Yea,

? .487 .773

62

-17

-4

8 3

22

1 .624 :5 3

4Z3 0832

21 .585

Ill 711 " :55

6

1 .85 3

20

15,183

.36

4 572

145.058

17 .72 D2

IZ2

603198

9,57

24 .583

27

1

1972

(2 )

5,728 .65 7

3 .741,160

95,47 4

626,401

17

2 966 7 :2

563 .223

497 138

94 :099a

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

7 -. 18

-37

-25

13,ii2i

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

35.771

. . . 325 . . . .833

83

A 391

298 .608

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

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

2.694,692

- 99

- is

V )

- 81

-37

1 .650 .4"

515 .269

29,455

J 11.S .,275 1

1 2

466

41541

14 . Is

847

348

4 .315

157 .279

20,375

161,

715 1 .885

.725

56 .045

11

7
Table 4-haternal revenue collections by principal sources, fiscal years 1940 through 1972

Pit thousands Of dollars]

In,,,, and Inifit, tax Is

Wal's' .

Fiscal y .. . TO internal

far

EmP!ovment tat, l

Is AI-P I

T thatto lure,$' All . he,

ended

11",

1

'

1

Corparalion Indilid .al

,, jx

go sel

It 1. fall, i tax ., excise taxe s

June 30

I

cot Irtu.,

I

Tell

once. I d

Plot 1,

taxes

(1)

(2,

tax(31.

" 141 (a) (9) (10 ,

111 1 1 1 111 2 2 1

1 1 ' T D' '

1 7 1 121 111 1 1 1 1 11 111 1 1 1 1 31

9:

7 : 0 ~ 1

3 7

:4 J : l 4 2 53 0 ., : 5 5

~. 7:~

40

~ :~ 6 C ~ ~ ~0 7 fiL7 3:

73

4 ~ , :

''

19 2 . . . . . . . . 13 .0 M 4 7 . 1 6 11 11 . 4 111 .111 1 112 11 1 1 ~I .M 131 .14D 1 .043 517 790 .932 771,902 821 .6 s ?

1943 . . . . . . . . .

944 . . . . . . . . .

3.a

22 .371 .

40 .121,760

16: .

298, 88

33 .027,802

I :~6~

.956

14,76G .796

b : :

1 629 93 2

8 .261 .005

:a'~ ,

1 as

1,738.372

411 .41 1

511, , 10

1 :bIll 77 423 : 64~1 11~~I :~11 7

a3

11. 41 s421

503,

1 :214 14 733 :bs 1,

1945. . . . . . . . . 43 .800.388 35 DGI,526 16,027,213 19 .034 3

11

1 ;71 1 7 1 113 011 1 311

1C

111 .111 1112,111 2 212 108

14

6

I :

211 131 11 113 111

:,

ja 1 70 6

: : . , ~ 70 :83, : :

5 26 165 1 65,519 922 171

, ,

1 1 111 141

947

3, 1

08 . 96

~ .Ofif sli :7 ,: iiii , :, 5J 1 :

343,297 2,024 .365 779,291 2 .474 .762

:

237,768

, : 2

1 .4 5 60

2 14 : , : 111,

41 11 . 112

"I

10 174 17 .71 1 1 1 1 1 342 111 345 1 2 1 1 3 2 7 1 31 R11 1 .14 1 .2 1 1 12 1

Q 463. .2

29 bIf s

.41

J :, 5

3 :Sal

,,2 :4 7 ~ : 113 7 5 '~ : 3~ : 1D :~ 0 , :3 : 7

21 5

7 '1 3 .

280,969

11 10 31 111 i32 11 1 11 1 1 11 11 31 1 11,113 .308 2'a,4 .5 5 7 706,227 1 .211 11, 1 . 111 464 .836 05 3

1

14 .111

' '

, , : 5: l 44 .~

50

37 : :.,~

394

al :S

:T11 69 12 .1 19 11 3 127 411 1 1 1 711

~ :~~

z 1 d

3'a 3 1 :

6

:

2 383 6 1 7

I,

,

1 _ 1 : 3 9

1952 . . . .. . .. .

j153

65,009,586

1!L68 s3l

50,741,01 7

54. 130 .712

21,466 .9

.0

11 114 11 5

2 :

9

'274

107

32 131 217

4 4: :

64

2.

4 .~ 11 .413

. 3 3 : J4 7

111 114

: I J,~

2 54

2 11 111

1 .5. "2

1 6 54 .91 1

, 34

3 9 43

2 .861,733

2,50; .933

9 : : : :: ::: : 1 14 7 11,

54

9,

.919,

, 0A

54, 60,

2 : :3 ,

546 12

J ~Tf 61 : : 1

2

5 ~7

623

1: 1

93 21

2 :, :.12

83

: 5., 2

29

1

33

: :

2 464

.5,

11 2tR 692 41.114 .826 18,264 .720 31 15 1 Il 6 1 1 .11

M

sa 7 15 : : 131 .1V 2 .742 .840 1,571 .213 2 .885 .01 6

I2 14 9

,

1 131 111 11 .111,512

: 7 : ,

35 33 42

: ,

. 7M 1 171 2 3 1 1 121 71 4 .(H 3 491 3 456 .013 '2 :0.19 38 0

1957~ . . . . . . . . go J

971

D:5 : 4

60 25

2 5

1 30

11 T 2 7

5

1 .5 I

Mf

:377 :, ~ ~ :,73 :JI, I

j 1 4

7 1 7" .'3'

,

~ 24 3 1 1

1 7~1,1171 7 :947 6

.79 73

51 . 81%I .V 4

. 2S4

10,533 3 1

18.091,509

l 5 3 11 : 1

40 .734,744

:31hi

8,853.744

11410,92 5

1 .352,982

2MG.461

3,002.096

J

:

1 .806 .816

: ,

3 14 1 15

3 .958:789

: , :, , ,

16

i,997,29 2

1111 11 . 1 14 .13 11 11, 11 ?2 ~ 11 41 1 44 .141,711 3 1 . 15E, 539 1 .626 .34 8 3 193, 714 13 111 4 73 1 129 2 004 39 1I :

fit

1 4 1

L 'GRG

7 :9 .7 :

941

: , :

21 64 9 0

1

46 l 11 1

1

12 5%1 151

9 1 392

6

3 1, : 2 801 1 : 1 J1 : .7 ar :~~ ~: I : :,

63 3

2

1112 11 41 9

"9

7

1 "'

.3

"

2 21117 1 1

1

:a49 :

SO 594

2 '7 :7 :

2 :035 :187 3 .341:212 1 5 7 f 11 1 . 121 140 2.

'a I

2 . ' 96 :

3

1964 ---------

Lli:,,

5 :3a5

112,260,257

5

7 13 7

78 .991 :2148

J

22 1 24 ., : .16134

oil 12 :~117 .11 J

54 90,354

15,004 .4fq;

17,002 .504

2 .Ig1,117

2,416,30

3 , '77 1 :441 :41~1~1

2 079 :,37

a ,2 .54

,

5 ~ .0 :

6,020,5430'3

` 17 36

' S' 2 .299,64S 5

III

5

1 11 4

10"

7 2 6

9 19 O f

3

."1

1 1 . l 4 11 ~ 71 1 .132 1 771, 6 1 4 2 111 11 1 411,Ill 1 a13 .4.

966

'~ : .

71 961

1

2 :J I 3 JU

'

~ . Is 43

~ ~ : I

33

:a93 ~

22

J 8 3 : ~ 8

14

2:07,: ~ s :6

9

'3

.

. '' 9

116 1 flif

1 '

4,IIJ5 M.M .420 34,917 825 1 71 9 l .595 26 .958 .241 3,014 :406 4,07 5 .723 2XI . 4

"9

5 .47E'

34?

2 47 1: .

sis~ 53 :

G3G,838 IBMW565

5

29 .896 : 20

7~:

141 ~21 .111 111 1 011 .171 I .M,211 2,111.277 5 .713 .97 3

17D

0

322"'09 A6 ls Is

8

"3s la :a33 ' 1

' '

: 4

17 .4,1

Ia3,65 01,5 "85

3, R 5:~ 7

04(g 4 .llpf

37 :

3 5T : 0

b.:O"115 7.

82

.68 061

1:3141:4.195

If0 s

13 2 ' '4 ' ' '1

1131 :0,72 :374 30 .319 :95 3 1100,752 .421 39~918,690 3 .784,283 4 :800 .482 2

"a' 55

985

971 1 9 :81 ~ :7 ~ 7 J43~ .04, 7321 34 .925 .546 108 .879 .186 1 43,714,00

1

1 5 .489,969 1 5 .110,001 1 1,201 M 5,728,657 3,901,104

Less than $500.

Revised.

The receipts in the serious states do of indicate the Federal tax burden of

Inch, 3 in any instances, tales 11, collected I, one State from residents of

earth

a, SU

in. For axamlifi,, withholding taxes reported by employers located near

Star 0 lines may include slIN11111.1

.calls .

itim

Old I in

. W "a, 0 1

employee,

who reside 1. rictlitlao,in . s a

r Irclud,, tas on ,related business income of exempt orgarratrans,

Collection& of individual ncome to, at withhold unclad, old ..ge, sur

a" .

disability . and hospital insull- 111, a an

separate Patto "ll"'m pioy ..P' "0"'. Estimated

d

.1 totals

In, adiv,

doll , acone, 1

3'

and to, oll,ag, survivors,

dilabilly, Ind hospital insurance taxes are show, In the felt table on p. and

a

a n

re led w able

far

man, i dilidual income level and employ .

tax . I "' Itable 4 'aboard "'I"

1 Soft or in I .

.a imposud bi thee=al Inswarame C,mbilldion,

Illplo' b with aspect

8, A ould, Of

Act .1. C.

:of tax and to Guam

A, Samoa .

~alls Cdoulct it I, Gas, and America, Samoa are combined with similar We

wisports to, Office ; B'Sion of International Operat-1 .0th-

,, with lh,.~c.ogu 1111 . 111 1,,i.tll S III I bhold I a all', ri~tola I a OIL tied to exclud :

md1lid us tax I, it to 11h: Gov ' ad I of Caere 11 a,

cordance with the provisions of PulAit Law 630, approved Aug, 1, 1950 064 slat

392) . This adju a indent amounted to $10.1 odihmn for

1 971

.

it Tax payment, made to banks der the Federal lax deposit system in to ~Cut, 0,

the print

'Yat'

. a aded in the internal revenue collection$ 10, the

,,ad in which he Federal tax deposit is purchased a, the Italy recip~ depos s

wen, issued . Howe'

- so Y. I I.. Pat el

.. .. led by tire net revenue it!

Iticts (no, by tax sobalfassishilp".1di'67 serve tax

" . Year ,

a,,

11 until the I

Us depo

.i I payment

1 3 applied to the taxpayer's hataiTII, in

,

he

far asamins

car ces

at

the depositcry recInds, at, f-ised in the internal revenue offices with

tax returns

I it

.

,abri t,catnent ,Iu

a

credits allowald, on income to, to ins far hc:,t 'I" gavelim, a,

g oil tax p "Pents and for excess piym

,

undo, t Fadanal in-sele

Contributions Act (FICA I .

- Amounts I internal revenue Is... collected an Point, Weim contacts Iran,-

Ported to I he United States or cuasu it in In

0 is'

. nd

"

- rel u nds, or&,

backs,

and nairanses) are covered into the I lass"ry of Puerto Rica under Provisions of

1

2

Of , he

Inte-

,

Rmor, ue Cod, of 1954 . the gross

. Pre . fin , , 1 ~

:)M and 5314(.)(4)

1.. 1955 litnecluded 1, overall collections results (tables Ithrough 4), beginning

with 's co

"O"'n' at' shown "P toly in to

1.2 8

Includes occupati.. .l to. a . inarrdt~,cluers

at

still$' rectifiers, wholcula

liquor "`~'

it dealers in little, cled,clual spirits. and mm-brv-,o

manulactu ~s'ollta

jP,1j.1,d,1s slilupes, penalli air 'I" .e.s, etc' wad tax an stillsor condensers araf. IU~ad

O'cu

.

coal I

.

an holesale and ,fail dealers I, lines

0

,i

wines and hear ,

jncj~,duxisc.. .. lionslit-sna b,ii-sand whoi,saleand retail theerd,olon

falls on damost,rally produced cigarette paper, and cigarette tubes;

taxes collected by Customs a, imported cigars, till.. .Hes, cigarette papers and

cigarette Iuma3

;

air it misce

11

still,, tobacco collect,on s

14 Includes taxes an Passenger automobiles and light truc" which were .peahul

Revenue Act at 'Iisll, .,it parts and accessories to,

Z11.101" I

-y 1 . 1966 by Pu

a

Law

9

4 4 , and parts and acres.

so s Or mot, t,. ks, etc

odes taxes on fishing equip' it, and taxes on the following .itions which

aner. .po.lad by Pub ,, Law 89-447PInmogtamb r 0 ds,

b."ou" and all,. machines ; mechanical pencils, P`.Z' and bgblels~ .1 "1 1 .11.udialrl~,~

fares .

am. .. ..

. phonographs, component,. idc .: refingo ation, freezers,

dithimar, etc

; fact'I,. gas Ind

0 d app

Mncludes taxes . law at), and lobar preparations I's .. . S . ; repeated effective June 22,

1965 (Public Law

11 Includes taxes on admissions 89-") to theatem, concerts, athletic contest$, real

field 'ns, can-ods, etc : repeated effective December 31 . 1965 (Public Law 89,44)

foreign uns prancess at 'In .. .rich; adulterated butte, and (sued chnse iillpolild and dome, S'i')'

..led hall,, and imported oloomaign,irm: slump I...s a, dammls, ad .1 he, Istluninnis.; lot

bill'

mqualusbar ; car, operated amusement

device, : bowling all

,

ys, pool his,, tc

'

firearms Rance, and Pill,,, :

and private foundation, saff dealing, excess business heInto

"

tax,b

. ad

.

tuters. Failure to file, certain information ,fiurn,, and assessable penalties with

,aspect to annual reports).

is Corporation income tax rates : Effective Jan . 1. 1965, first 925,ODO of ,I income normal tax of 22 Percent : not income in excess of 125 000 combined mirinal

and surtax of 48 percent . Normal Is, and sort,, else . pply 1, not income dtriv .d

III calt,in exempt organizations free unrelated trade a, business . Iftectwe hn . 1,

1 68, a 10 percent per an,um surcharge was added to the is (Public Law 9D-364).

The .ad 10 pinc nt per annum surcharge as 7 c 3 , 1969, by milead .d to 0, . ' i P.L . 91-53

heas 0, . extended tax .1, 1- 11, 1 1!0 by P .L . 91-1 72

.1 a 5

Percent annual sta.

--Hot

.

.1 a, to.

a

. Individual income let MCI- Jan 1, 1965.

graduated rates 1- 14 percent an taxable in,,",, nor* .

. !, " I a 'in"Pt on

mount, I taxable income over

RaR ._PjPcb.d ., rabra-z

arvix. s . disability,

and-hospital insurance falls on sell-en, ,

.an, on

. "rcrml P .

per romium surcharge added by Public law 11 fl~ '1111.

In;

sts, at ~3

I. Ofividii.1f.al ealandad I Do,. 31, 1 P%r

e

. ;Id be.

. code

to June 30 . 1970 (P.L. 91-172f .1 is 5 percent annual it"

'a Rate' .1 tax I' . I' fall

. .

s% tell,, lax iPait ,led ,thh. filing I, excess Of

e-Plums : Public Law 11-311, .1oc

I Jul

14 3 OnI 'ehl - Firm

'I'

Law "

1,12, ""'clNe January Iii .1.1.10 . I'V4`tP R p;.1N,'1 ' III tTJ6 percen t

a, I a72 under th ., Rxi Act of 1971 . Old-,E, iur is and disability

I.-UE

. I .

. . "Pilot

in.u, .nc and It msu libm-a lime. I .. . it

. an " it ""

were '"' "c"

to a combined far rat, of 41 per

cont 14.2 mco at 'a, Social

S ric . ... no P - ' I

.

cent tog R

ospital insliancei through December 31 970 Effec

... .. ..

. I r I~W.

rate changed to 5 .2 pe~-t

(A a

percent for ;I.Tflt~ ,

nd

0 Is I-entyla

is

offer insurance) Far 0 1, 1972970toand I the $t1q. applies to y* . 0 , 01,7 .1,11

he :n.~ ffeetwe January wages J, to 000 paid by the 1.

Pro art Wln~ludes railroad employment tax, 9.55 percent far calendar

,na, 1171 and 9

.95 to, calendar

rest,

IT 'no

and 117 , Tax *poll:, ta=1.11

ampro _ imposed

ad

tostab a

Portion at wage,. Al

. ad , s

tax on employers I:jrc.mp alfirit. Paid to : 'act'

. PI .Y."' I I I

income .1 ...h

crop P ...n

'a,

chat prolitkin rare .,ad,

at the following is I as 2

ce als

par .. .-hour October

1 . 1966 through Me,-

31 . 1970; 6 ,at, Pa . an Paul A Pill

1,1970(hrou

7

c,nl

a

11j,,,In-hO"1 J oily 1, 1910

thl ough Dec ember

31, 1970 ; 6 &', P`,elra . Di'n? January I through ]an, 30, 1971. Thtn .aft .,, l

employe, and -p eye, representative will be n,t,f,,d .1 the !.IF.atir - pel-bl. I, the true to

, by !he Railroad Retirement Board (P.L. 1 -215 . title, lipills

railroad inuplogns percent .fopresentafive tax,, 19.1apettent tar calendar Year 1970 and 19.9

"'

.. I year, 1 171 all 9?2

n

t..bl . portion of wages ,

a ad Iran

at

or,

a I finks ad bonds . repeated, effective Jan. 1, 1966.

.,Ids of conveyances; $100 to $500, 55 cents. each additional $500 a, traction

thereof , 55 cents; Isolated effective all

Itc .1fing oil . repeated Jan . 1, 1966 ~Pumli`cyl_' ' .~'899"44) .

R P. ' it e,,mb :,,I1,.II7I under 11 . la-me Act of 1971 .

' Z,D, ,

.

Is Rep.. Hall 22, 1965 (Public Law 8944) .

'-A , ciandtiona, it effective May 15 . 1965, Raftigaist. .. and heno- P ad. OR

i

w

a

. I

active June 2.1. 1 65 (Public L .

17 Repealed, effective Jan. 1 . 1966 (Public Law 8944)

Is RIP .

.'

led, Iffleby.

rumm, Dee . 31, 1965 ( ! uhire Law

"

-44).

as , 'is tax was continued at 10 price "

by I or

It resolution (Public Law 90-285),

.ad the Revenue and Upeaddula Control Act .1 run . 28,1968 (PUbli, Law 90-364),

which .,land.it Rhisprate through Dec. 31, 1969. 7h

i

. rate we . further extended .

to Del Narcotics . 3 , 1972 by . I L . 614 .

cent par rccifiumft on, handled . f4a,Ih 0.0. .

$1 on, once; ..,in oks

.2c

let,

eac h

. Amount

, a

he an at. include

occupational taxes levied an manufacturers 1 5]

. dealers, and practitioners . Repeated

,ft,,.ct,ve May 1, aw,9 - 13) .

Retinal .it .0 1

(PubhcL,

5 (Pidalk Law 89-44),

raAd.Ita-t.d 'c" th . July '

"Ll: 10

card

, P

., p. . . it. Process valind bull ., ; i,', coal

on, Pound . Domestic dled chease : I cen

I

per pound . Impoited filled cheese : 8

cents par pound Impa led adulterated butter and oleomargarine : 15 cent per

pound . IxcupetL alisaas are levied an manufacturers,, dealers in (base products

.ad

ate nluded I

P the amounts shown.

re),3,Transfors of or.,hire Runs, short.b,rn,,.Ieit 1,=~ 11 . . .. ..; lc, . 1200 each :

,in Runs with combination shotgun , it nfl

.

and oth s pacr,l types . I

R-arms, $5 each. Gaup,t coal taxes are levied it mon,tichunans, reporters, Or

I1 .1- in Ineurt, and incl .dO,a.d I,, thc . ... n shown

at I-Negal1w . figures (excluding On a .Il .cti..s, at . . Primarily 1' . . no

JIGackS credit, taken on certain talls I .P.M.d by the Ellis, Tax Reduction AU of

112 113
Table S.-Internal revenue refunds Including Interest

(in thourcends of dollars )

Internal reacrue regions, districts, States Aand other

(States ramasented by single districts indicated i n

parenthesis ; boul to, the, States Thman 0 botto

m

of table)

it n

Total x

Corporatio n

incoure

2)

Individual Income and

.

employment taxes

Enexiiii . Other z

prepayment I

(3) (4)

Estat e

5)

Gift W-1 -

7)

Wind State., total ----------------------- 18,IDD,6g, 2v$% ;40y 13,75D .962 891,555 !2,702 7,501 1,373,61

ficurth-AtIamfl, Xi con ... . . ..... . . .. ... . .. .

All r

.. ..

S

3,054,013 762 .645 2.164 .821

_

IS 7.

____

14 .237

385

33 155

an (C) below )

pamy .,_

- ------ (Mai )

""

:-

111

121 .943 D87

1:

110.675 2 :408

5

21 2

,1

------ ne . . . . 5D

1 Anessuchull"s

63 .409 7 154 54 .655 1 .351 196 3 5 9. . . . .

8 . . . . . : : :: : :: be,.. --- - 1:123

579 796

85.1.7

75 17

403 .094

1 77 51

12 .765

1 402

1

1,40 3

3

' '

34 2 .23 9

1 ,

(Ine'in c.),,b)l. !!):::

(v 3'

14

31 .109

53:

554

3 .586

: 7

317 9 5

2 5 4

3 1

:

5 634

311

'

1

: 1 5 2

70

14

3

16 5

Hartford -- -

Manhattan

332 .33 1

891 08

75 .16 2

42 7 601

8

23 : 202

4

: .

7

33 20

2

1

.700

S 709

71

8

309

:

new . . . . . .

-

:

54 348

4 :

a" 48 : T7

.

913

.

129

175

1

1 366

14

Rhode

Pr.,id.,,. -------- -

Mid Ati Ii R k

94,462 21,702 70 7

64 - .. , ,, ci.... ...... ..

1,774 208 26 105

... .-

Baltimore . . -------- lI111 "' I' -

2,559 .137

151 21

425,445

1 1

1 '931 2' 3

9

373 0 ,

52 753

2

"

7 .293

1 7

' '

912

703

90 .445

sN me ) bj~.;

Newark

---- me

:

759 066

27 :170 , :7g

14

4 .

5 52

2: 4

77 57

4:944

fill 062

i as t.) ... ~

(San ")

: ::::

622,593

090

3 .

1147B :141

454

480:248

25

14 .192

9

90 32 12,871

Riclum .d . ------ - :

288 86 7

2

"

289 2

257 420

5 2

6 196

1 .2

39

704

29

85

1 .21 7

So

-I"Hom"r- -------

62 .2 44 21 :095

.

34 .617 2 .042 - 6 6

2,961

490

,-, act - 11-111) - -----------

1 .663 31

300 171

192 .342

43 211

1

.401 .819

243 13 3

42 MR)

8 159

3.754

32

ON 15 .133

Bi'mirilleen .-

(Alabama) :

- : :::::

173 4 21

:5~ ~

13

.

1

291 111

5,834

Columbia 17 3 .. Is.u. Car.

"a,**

12, :39~

264 652

12,764 13 :069 2 :994 194 3 393

lk" ! :-:: : ::

:

96 109

37 :171

5

1 1, :411 5 .794 429 13 7,08D

.

jacksonuill---------- (Florida) 49D 793

5

23

55 31 8

47 7 ~

2 5

12 . M

2,589

18.674

1, 7 3

M

22

500

27 8

1 12 1 R

Contra, R .Inill" ---- (Tennessee)... . .

. l

:

218 IGS

:07 0

23 187 .368 6 .194 563 A

,

C b

g o---------------- - 969

l**

I

:154

.IN

358 024

:

1

.959 .783 49 336 5,3g4 M 1,040,859 :.) ,

~d b

. . .

C .land an

116

3

572,614

69 94 7

14

M

.098

41 .911 7:961

9.656

54 3

R33

1

86

1

3,660

' '"

Detroit- . . . . . . . . . . . . .

Indian poli4.466

'

1.9

:060 670 306

1

1 11 7

:

1 4

66

-------- - 198 1 .028 :8So

L.Ui.ill------------- ~Kertiicky)- . . . . . . . . .

,1

3 .362

172,795

34 :479

1 2 995

:

320 94 1

152 469

11 :

139

4 1

730

41

3 9

19

4 .133 , Wast Virginia 93,412

6 .

917 :

99 081

:

1 KIS 402 98

2.634

99 ---------

a

2 .

405,767

29 176

'

456 33 1

1

1,

,

U6 909 56.961 5,193 392 19,980

Chk ----- ----

.

991 403 31 :7 g1g

19

1 113 1 .20 79

1

;r0 -

Due oin .a ...--..... (Imea) .

.

157 794 M

.0.5,1

14

2

.069 1,569 11. 1.274 . . . . ...... . ...

. flimll D.k -

) ------

.

IT ' '

2 22

4

0.326

25 065

4 .64 1

1 10

507 12 yaH.,'Cjjj. . . _::::::

(Wiscomain) ..---------- 311 : 754

54

207 M 003 . 0

967

1

4 3

579 98 91 0

one .h._.... ... ..

St L i ::: (Nlft ke) ------------ 94 .403 16,419 73,164 :

I RSO 389 5 537 . ou s -------- ~ ~M=t).):: -------- -

St Paul 351,955 71

R "'

927

1

877 91 10.296 . .. . . . . .. ... ..

S r .Id (Sea (b

331 .924 81) : . 242 :949

:

6 $69 622 19 35 5

so

angseV, . . .. ..... )

let " -

198 .450

1 655 301

24

25 :

117~111 1 1 527 5

:

353

ALbuquerq ---------------------------- -------- - -

. .. .. . . . . .

. (Now MIXi

. ,

66 1

59

2 27~

2 492

1 " . sys

55 116

:

t

184 51906 4,316 6122 5 Austin . - rll,) I 1 1: : : : : : : : : Cb ;=: : : : : : : :

:

413 1 96: 253

,

34 93 5

7

1,766

16,720

M

957

11 6

04 1 6 9

562

inion ',_ . _

.ynm.

bWo )

S. (1

20 .875 1,172 :

18 760 823 95 12

.

l w 14

.d

n

)

!Ccllr 338,240

173 301

62 Age

:

252 71

~

14,588 1,497 3 .871 2,74 5 . . . .

Little Rock.

New (Lou

:

17

2'21, 1

12 889

8,292

1 751

11715 .4.314

11 11

42:471917

6

1

366

562

4 1

98

41

12,

110

OklahamsCi y . .---- (Oklinorne) . . . . . . . .

.

14,' 575 :

17 066

123 :

534 43' 431 105 326

Wkhiu. . . .. (Kimses) . . . . . . . 695

West.. RxxzIwa ::::::-:: - -

141 .205

3 sm

74,51 5

436 990

110,836

970 -- ------ -------

4,40545 941 21 498

------ -- .:60

.

2 47 2 . .019731 05 92,996

1 107

10 .111

5

523 25,695

got..- ------

"

4' '

:

14

7 '

.

39,2112 .

I "

.

93

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

9

76

IDS

"Hcoaa "l

40:013

1 .

S47 36,297 1 780 : 344 5 51

Los Dine (11 ll*) 77,34 5

1 I 4

7

' 12 Phomn._ Do 355 3 61 1 . . -

I . . . . . . :::: ::::

". ns

141 :111

20211 :84

113

1 .

1 31,

go

3!1 : 3

4 834

4,

606

377

1

72

13

1, .

648

Rldhoid . ... . . . (.,Tn)d .. .. . . . . . .

I .9f ,

91

3' ... 4, :

669 6 :179 550 13

1 .53 4

'

: 1

83

'1 '

1 723 196

1

49 63

( )

776

920

I 9~

12

0

7 : 37

~ :2

10

82 2 62

Seall .-7f: :--- l..hm, .~x :

010% of Internall-I ow.ti . . ... . . . . . . -----

.

279 .08 Rd0g

95 .

4 .529

24 .01 6

10 453

757 '670

243 .33 7

76 177

25 .57

9 N

7 822

2 .610

899

an

20

10 .102

I~ 123

do Fit- . . ... .. .... . -------------------

8 325

I .

,

38 16 :003

.

1 . " - --- --------

373

Caro i,he . . . .. ... 338 . ..

a L b i ti il

77. 11 1!,!! 10 .174 5 3 77

-27

31

n

ifurecoun,of u r ca ng o

Couphis.. . . ... ..... ... ... . . . . . . . . ..

'W

596

1 413

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

..

L.

447:332 --- ------- . . ....

I

.9 .13

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

----------

------- -

I--- ----------- -------------- I

1' .

Total for States not sisman aboam

(t) Ciflikerii. ... . . . . 2 .577 02 12. 3 159 411

'

763

7 216 25

(b) Illim,ti.-

N 079

:3

25 :

828 3 319

04 61

2

: 096 175 5 7

(c) o. York

t Ohi :::::

74 1 564 469

:

1 :324

WS

52 646

t

0 .

5

217 21 .420

o --- ----

-

(i ) .

(of P- . I

730

:

114 1 71 087 11 117 2 .31

2 4

1 144

as0. . . . . . ... .

0) 1 ..

996 .673

801 .221)

190 .703

159 .097

7 6 9 :SGG

20,09 1

600.691 31 .31011

2,229

2 .4411

6 1

3 .975

1 . :=

4 .307

I- than jSaL

Excludes 80 .725 undelmorable refund checks totaling 1114,082,00Q.

m:ud. crVib, for axe= Social Swcorill Paymnects under the Federal Insurance Contributions Act (FICA) of $447,332ADO.im

cons

u

its far ber. 'rigismaxim art .,- ""'IT-mid Ulu, stims .11tax Figures not ad. it W leffecl ents I Pis he

ties 1. 11447,332D"W'7 M.'sedetal Old Al. unit Sou-11, Federal Disab1fiV,, ard Federal HoTitsl Insurance Trust Funds from the Highway Trust Fund amounting to $144 .325,ODO : ard from the unemployment Trust undramountongto 13,3&Z,ODO .

Table 6-4riternal revenue refunds issued by regions, districts, States and other areas

lcdi,idu.1 in ... and

Internal millon,; districts, States and othe r

mr, Corporation

employment taxes

Total income Estate Gift Eni n

(State, represented by single districts indicated in Eic-N . Othe r

punthes.; total for the, State, shown at but .

him of table)

pr.p,y ..ctx '

(1) (2) (3) (4) (5) (6)

United States, total ----------------------- 55,154,993 268,559 53 .203 .911 1 .619,717 15,346 21110 45 .34

North-A"lantic Region --- -------- . . ... ... --

Albany~ ------ ------ (Sea (c) below) ---------

8,441 .148

510.224

51,4N

2,025

8,136,201

494.692

743'Z85

13.190

2 .99 1

166

356

11

6.909

14 0

Augusta --------- (Maine).--------------

Boston -------------- (Massaichu"Its)-------

273.203

1 .675.151

1 .34 2

10 .741

263 .52 7

1 .619 .623

8.063

43.543

97

522

7

51

167

67 1 Wcoikly-- -------- lSm, ji) below) _

B.Iff .t.------------ (San (c) below) ---------

1,821 .968

1,000 .971

6 .434

6 .424

1 .767,600

964.818

46.494

28142

580

12'

41

37

81 9

630

Burlington-------- - (V.'nmmU- ----------- 122 .517 652 117 .268 4 SD7 32

7

5 1

Hurttord ------------- (Connecticut)- . . . . ..

Manhattan----------- (San (c) below) ----

932 .27 4

1 .562 .264

5 .584

14 .117

897 .863

1 .111 11'

26.460

59.507

290

71 1 113 1

:9 2

2 3D 5

Portsmouth

P-1deme------- :- : ~R"hme"l -------

Mid-Ati-tic Region- . . . . . . . ------------------

8~ 88 2

32 123 .69 4

131

14

1

. '73

2 .174

33 52

: 111

391

8 .314~507

062 750

6,061

6

214171580

, 2

2 .06560

9

1 1

Z24

1 so

5 . is

Z3 3

Baltimore ----------- (Maryland & D .C.) -----: 1 :5 :311 5 :675 1 111 9 11 11 714 376 43

'1

3

Newark-------------- (No. -------: . : ::

Philadelp iah 'Imr le b,,,w~

2 :104 0758

2

0"

7E3

3

:033:5,

2 .02,840

~7:

52 113

143

7

42340

,

49

1 .7

1 .430

29

_ _ . cw, : : : ..... .

Pittsburgh-

(Sa. (" )

. .152 .798 3 938 1 .221 .473 26 Gas 260 14 42 5

Richmond ------ ginin) -- -

Wilium on ---- (D.hnavc) -

t r

1 . 1 104

1 11

15

:

4 16

17 '110:

5442

33

3 .3: .41.1

.32. .

37

14

840

Son. 256

eas egion------------------------------ ,amili. .. . . .. . . .. .. ..-.

07 5

7,1 .159 . 11 7

515

5 .641

OD6

1 11 7 :1, .,:4Sil1l

. . .

:7

3!1 "

4"

1 .48 9

156

15

31'

S'.

9 1. 12

,. b

rinnugh (A . a .. ------------ 779 "1

2

515

753.701 21 .8' 94 33 4 "

C .t..bi---------- ~S-ulh Ciamini,i) --- -

Gneensloom- ----- North ------

6 . 1

1 .241,73592

2.274

5,646

615.990

1 .2

"

15.922

K .266

1

22 14

52

97 '2

Jackson ------------- (Mississippi) ---- --. . . 426,307

' 53'

U .: 3" 114

" 11 1

47 6

lacksonxille--------- (Florida) -----------

48 8

1 .83& 9 11 :2 I

.X0 000

:

1

fil' IT 16, lig,

1 .3

54

C an No hvill-. . . ------- (Tennessee) . ... . .

tral Begin f ------- ---- 7 99315158 .5775

3 .405

295

31

961 .92

7,SU,981

21 .41 4

1",168

194

I'll,

29

141

1

4 .21-0

Cincinnati. . . . ~S I Id I I Wma) ~ . . . .. ..

C lax a Is, d - - ~ - S*~ (d) below) --- _ ---

1 :

243 .131

1,725 . 1

.0

:

19 305

. 783

.2,04 :559

i .672 511

3 :335

41 797

2. 9

287

24

34

607

69 8

Detroit --- Ilichillim)------------ -

"

2 .432 .993 1 1 95

2

2 11 14

6 "11- 3"

33 1 . 30 D

India,apoi Indiana) . . . -------- -

tm,mill.~ ---------- (Kentuck

1 .371 .44 1

735,201

4

887

2 .802

1 :3 :

30 238

703,407

3~13

23,161

2

33

144 1.11

1 4

6791

I a

at 'i "i"i

3

4 2 3 .

1 .5136 412.G20 9,354 59

I ,

193

Midwes Abend! an t .. . . . ------- (~~tw --- . . . . .

7 .7 7 9

54'

43,170

174

7,483,751

132 114

243:361 2,67 1

67

1n

6

6

. 32

1 4

:

is . (b) below). . ------

C' ~c Ziw -

2,4&4 .23!1

,

3 .055

341

2,391 : a04

7

W .05

26 1

706 152

1"1

3

. i e'

Fin, ~4*1*1'h '127 : 758

3,

55'

61 .404

" "5

.7 3

" "

36 5

65

4D 11 31

sent.

(Wisconsin) ----- ------ 1 .148 .943 7.071 Ap 7 8: 74 31 :7 .5 3

11

853 $t o

Oman . . . . . . (N,b k.) :: : : : : : :: : : :

'

In. ... . . . . . . . . . . ftxaxuml)~

1 153 :995

197 065 1

:893

1031

1 . 333 .324

140.920

18,09 7

36.626

2

386

29

94

1 4 1

. 038

SI: Pop; . . . . . . . (Mummict.)-. . . . . . . . 1 . 986 . 676

5

. 662 947 098

' "

273 47

Springfield . . . . . . . . . . (Sea (b) below).,,----- 720 .966 1 , 1

2

. 794

:

694 638 22 :112

...

35 6 2 5

Smithwest Region . . . .. --------------------- --- 6,162,417 27,251 5 . "Z2 044

201,"7

1 .660 364 9,93 1

Austin_ : : : : 1,S:.w(M1,1 I in.-w-,: : : : : :: :: 217 :933 1

642 36 1.251 81 " 1 .524.2'.67

7,351

47 .974

70

347

1 6

96 5 .601903

Cheyromn,- . . .

De las- .- ~Siy"(f~'& " '6;-1:

it

99

24

1,4727'

712

6.107

ai .

1 .137 .84'

:531

432 W 3437D

1 6

69 1,411,11,

D...

e ~C*lkuldo)- ------ .. . .

Little Roik_ Arkansas)-: . . . . . . ----

629,24 5

414 173

2 .927

1,933

607

397. 107

924

18.44 1

14 13

204

12 1is1

52 2

322

Ms. Orleans %muisia a) -----

" . :,28

3.559 1513.1.1

23 :

194

"5

3D 9G6

Oklahoma City------ : : Oklahoma) . . . . . . ---- -

W1,hil. -------- (K.-) . . . . . . . . . . .

596 .545

12'

2.336

2 "'

572.641

499,426

20 .909

22.341

196

2 1l

5 5

24

408

I,

..

torn Region ------- ------- -- . . . . . . ---

9 .'

.2 45 :630

S

. 9Z7 787 278

11

'

3,0n 3

n 7J37

Anchorage ----------- (Alaska)_ ------- -

B .i se ------------ - 11,1111) --------------- 17S .72!) .,072

:

169, 71 11 38

56

:1 4

17,83''

6

56

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

i 196

: _ : 96

Hot . . . . . . . .. . .. . Mmit..). --------- -

Honolulu. .------

':: i'

172 .11 1

' '

1 .273

1 .567

163AD 225~ 315I 7 .45

7 .4 8

35

7,6

7

129

1

1as

Los Angeles ----- : : : : ~s '4 ) 91

Phoenix------------- (A'i'omi)-----------

3 .677 :5 36

503 465

18,433 3 .5GO 590

411

00

94,7 52

"I

1,30 1

N11

124

19

2 .356

234

Portland ------------- (Oregon) ----------- : : :

111, ---------------- (fi-dil). . . . . .

(Utah) Sell Lake City.. . . : : : : : : : :

.

645 255

168 :79

288 976

3 967

695

1 23'

6

1 24

163 01 6

'9."'

2f :52 8

4 .94 3

11 3

'

o

267

4

2

I

9

13

235

: :

San I (See(2) below) . . . . . . . . 2 .391 fll

: .

, U 119 8,111! 79 312 : 893 99 2.23

Seattle

Office of _W1 .6 (W"hu"W" ii~ --------- ) -

Worrell Written

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

:

920 8

11M .312

5.145

643

am 358

159'.923

29 .98 7

23 519

2832

13

22

5

923

So

Puerto Rkco- . ----------- - ----- I ------ -

Oth --------------- --- -

11 .114

143 .

593 '1.76 .329.:113

940 N,'9372 ---------- 3

21

69

(a) Caldmnia. . --------

Hit 111m.1Z ------------

(0 New York -----

~d) ONpimu", . .. ... ---- .or. . . :. :. :. :. :.

I as --------------

I Net of 8D,725 undelsverable refund checks .

Total for State, W shown iflimi n

6 .068,996

3 195 101

4 :895 :426

2 968 .149

3 .347 .946

2 .331,663

is29t:. '949

540

126-12GS1

12.359

1 $59 532

,,

: Bit

:

4 .712 .016 042

23 :171 :171

254 31 3

2 .720,570

174 :06A

80 187

147 .833

71 '31

7

.

:13,

90 .857

2 .194

988

1 .93Z

496

6M77

222

212 117

58

63

155

4 .619

1

:949

3 194

1 305

W

7 .045

114 115
Table 7.-Number of returns filed, by internal revenue regions, districts, States, and other areas

Internal revenue regions, districts . State, and other

areas (States represented by single districts in -

dicated in Parentheses : totals for other State s

shown at bottom of table.)

otal

1

Individua l

income tax

2)

Corporatio n

income tax

1)

Partner.

ship

4)

D.cle'sti.

of esti.

mated tax

and .11

othe r

;ncas.,,,,,.

S)

Employment

Uses

6)

Estate

Is.

7)

Gift

Un,

8)

Exem

taxes

9 )

United States, total . . . . . . . . . . _ ------- _ 112 .DDD,449 75,906,367 1 880.819 1 D29,214 9,582,326 22 .007,335 192,833 190 .743 1,310,812

North-Atiantic Region,,-. ----------- -- --- 17,11131 A21 It 800,1)111 110,727 135 610 1 .1 17 18411 3 .1 1

6

; : : : : 11 111 34 1 11 11 171

Albany------------ (San (c) hot. .

August, . . . (Main.) . ~ _ -- -

Boston . . . . . . . . . .

(Marso'h.setts 1

~

13,547

53

3. IN72

29 co

650 .543

' . IN13 :

67

19, 77 G

a!:! - 174'

7 0

83

1 a2'?41 ~21

,S ~

21 0

1

3

22 :,1?

1 11

:

191 452

113.679

117 111

, : isl

936

1 .41l

1 : 1 .

794

I 1 71

:

12 1 6 6

8 .442

a 21 111

"ok (a., (c) below)---- --- -

"

3.6 03.6 3 2 .492.028 811 .115

2 HU 2'

.~'3 I : 7 1

'

7 7. I 5 a~ ' 2 .8 :

74

1

Duffel (See (c) below )

0,

------

2,452,07 9

64 11

8

1,743.271

1 61 111

445 :021.1

50

11 .

2 NI

lati,l.

21 .515

1 13,74 7

59,341

5 :21 1

454

3 .61 6

419

26"867

He'll . 4

"'

. ::: :

:

:

0Z 04 8

1,2 5,:' 3

-

2 ai~

. 967 11 111 1

11, 1

341 .214 4 .nll 4 .0 7

17 .

IN

Manhltl,"- Ise,. 11, below) -----

a 7

"N

2 .163,D03 12E, 749

'I :aa 4, :

1 '1 961 .986 7,799

. ,

11 .7

al . I,

Pmumo . , :::::::

fahord New lismPshilel e ------ -

P,axidan

c . .

. . ... . . alime)_ -------

all 5,7, ~3

"aD

21. a I 1

4 :43". 1a 5 1 -" S

2 .4

31

31 :8111

1.7 3ZI

72

5

'

4

17 "

7

7 G 7 4

Mid-Ati-fi,flein, n- ----------- ----- 16 M,233 10,998 .057 2661273 122~106 11,779 .894 2,933

.

279 27 Baltmer, .077 73 .367 149 .2'

'

(Maryland & D .C .) ----- -

- -

2 :

719 111 1 a1 711 41 a10 11 1 1 1 11 131 111 11 1 3 117 4 315 23 .2.2

Newark-- . : : : : : :- r

Philadelphia_ --- - .. . . Tow

Pittsburgh (So, below). --------

3 :4

'~b'

I, :111 :1 1

'82 031

: a4

9 1

1:~151:4121

1 23 8

1 ~ '9

03

141 2 :017121

3, :,~ 4

2111 " 5524

,

364:291

31 1~ l89 ]a1

.7 :. ,

1 1

717 a', ' :17~7

: .4 ,

a

1:11

3 3839

a 3:

35

1, 1:41412

33 .11 0

351,17 1

7 90

Richmond .

-

S 2,359,164 1,641 .354 30,548 11 .111 164,113 476 all 3,17S a .7V 25 .81 4

.Wilmin on . : : : : : : :- mrl~ ~ . . . . . . . . . . . 1' 327 8 .779

3 6 9D 5

~6 5

212 875 6694

7 :61 2

236 069

1 1

.1

1 4 1 19

31 a2 1

04

4

I ": ,

3

Is

7

1

747 3 . 1 1

. .

. ... fluxis .

2,327 .672

9,

1,555,261 34,225

7

19 :b29

1, 892

141 .432

3 . 29,133

541 411

2 .52 3

I D1I

25 .959

4

10

1,'

.53 6

14 1 1

Birmingham Al.las ner

. .. .. . .. 1

542 .643 1,045 .970 " 397 12 19 86 .824

351 9, : 2 1 :

28

, :

184

: 5

Co IS 7 1

Dr . iumbe_ .. (South Carolina). . . . ..

(North Carolina )

u ab" .- -----

314

I M :4

~q

2 la ,

7

.37?:33a!

17 :

a5 ."

7"

S :

2

0 ."

149

GIl1

111 1

211

Ill 011.. I2 .911 4,086 29 33 1

Jack

ss'ssippi)

928 .755 598 .815 12

.3 IS

10 .003 53,828 232 :613 937 1 .275

8

.cksanv Fir,Id .) ------------

Nashvilla~ (I comb-c' .

,165,03 1

2 '."'

.654,36 5

1 37 "'

5.6~3

20 785

31 4

'

a

:06 '1

41

" :77 1

2a

4 4a 30 S

40

N 7

a

2 3 2: 09'2

2, 890

Can 24 .846

fret Region -------- 11 :047,21. U1 .632~I35 716~21 4 114 .118 1,1 77 ,611

2,690

.291 22 .987

21 .

&B4

1 71

'

C

C er mannati --------- (See (it) belowi ------_

1) below) -- -

a. g

a

E.Ir lviih(i of

. I ---

2,385~618

3, :I441 :713

02 Sol

1 .675 .06 7

1 :21,1 is 135 :61 7

3152 3:114

6 1 3

13m,

42D :4

34 .65155

201 .18 9

2nI .Il f

333~794

4

5127 :32S"I

764 .892

4,12 5 6

' 3

:' S5

3,522

51

2654

2

7

:46 3

33 144

4

:a',

India Ilan. net--- ---------- -

K,n I,." k

2 .654 .21 6

1 . 141 .laa

1 :0891 66 :436959 3419 :2 6

3499

:?1 , 1

N4 20

211 :91

08 1405

461 196

313 :009

42 .IN

Z83

32 .7353

.20

33 ' 7

20 :422

Park bq~% . . . . . . (West Virginia)--

~

13 '150 562 .812 10,459 7,833

56 002 161001

Midwest R Nunn 1 .014 945 13 114

. . 11 .141 III If 111 11l 141 .116 158 .623 1,443,203 3, 089,411 36,492 31,470

1, ~4

2 40

Abe,dne. . .. . . . . . . .

, :

5 832

' :

" 089 4,538 2,783 15,006 82.405

. ..

gag 8,1

C ye.g.__ ------ (So. (b) below) -------- - 69

Des Moines h ' . .__

4.7935 .1117

1 . I S

1'

3,355~734

1,114 711

77,73 3

2 1 19

54 .563

" 7'j

6.640

'" ''

763,71 2

. . . 1 1 '

9 .07153

aH

80 2

3,603

37 .0

24 .81381

F. go ------- __

: :

~' '

' '

71

"1 :2's 3 :

963 1:3 ~ 22 : 480 11 : 3 13 7 .73 C 7 .171

M ituka.- . . ::: : : : W" 0 u 1, u). . . . --------

Oushe ...... .. .... IN car asks).

2 .438.71 0

' 4 "

1,673~483

55S .147

41,12 7

12 093

21b :17~2f4 27212 :a1412

0

12,1 la a:2%7 4, 78 :411 34 :11 1

1

4M,763

I " 2 1

I

St. L. is. ... . .. . . . (Missouri) .

Paul ----------- (Minnesota) -----

-

2.55059

3 1 1

'

. .

685 .61

7

.3

4' :

21,154

,, .a,

12.105

223 .765

1'

535 .91 5

3 1 5

~, 2.

70

4 4

4,23 2

2 997

34 4: .1

30 600

mmiffield -------- (See Bar below) --- :: : : :

I : ~

115a 26

1 ~

. "72 :.002.. 5 .957 7 .132T 1 1 31 .2 21 :90 6

4:

603

2 :9

54

:

19 069

Southwest Begin .1bassurie've_. . .. .. . 11,23, : 1%. T 11,1 24 01 U12 .124 14L 300 968 843 1, 131 11 19,543 26 .190 220 .5&3

I. B

3,443 1 19

3 3 7:

3 7

'

."0,1nl 441 ":5 '

"

3(1 gG ' :'5 4 230' : 7 .1153 '

, 1, ":

721,..'

527

4.14

'

1 .141

6,251

7~11a

41 111

C b

.. W if 6~

20

f24 .alb TAG, 2 .167 15,703 49,124 337

.2 ~ :2

2 5

1,11*i ----------

ado) ------

2 . .19 6

1 .276 689 .347

1,708 .338

960.83C,

33 a

19 905 So

11 :11

"

21 .7

17

3.1 :1 1

25 199

4':G' 1 117 21S 1

2 2.9

41IS:09.

91 6

~A,kxolxl) . . . .. __ -- -

L t

HI Ine i -

e 9 " "'

511 11 1 1 3 5gl 1 6 .1 13 446 211 114 1

1 5

:: : : : : 1 111 1 1 Ufgat

N

w

Ofles; , Lmirxixrx)~ ------------

Exist,... Cd 011,1 -

. '

1,144 :46a

1 .3fl .aEl

:~ ~

. . .

'4 G

864

0"

2~ :'

" 172

1 fl~ a

11 441

ID, :

74 5

1 0 1 3al

:

'86 604

1~1,291

:

559

2,244

:~5'

3 .006

3 ~ : ~

24 .44"7 : : : : : ~ ~

At, h it . . ... . . K n .na) .

West.,. Regimi- :_ -------------

1 .244~005

1 7 * 111 11 3

80 5a g

11.271 214

". at

0

2411 .143

:at,

2i2 0 8

6

0 7 :~ ,

1 .410 745

27'

399

3,342 .191

3 .291

29,086

3,41 7

26,590

70 .33 4

220 478

Arechumag. .. . . . . . . . (Alaska) .

lidsho)__

147 :

395,315 203

'o' : ,

258, 21326 21 :863770

1 :

75 2

4

6~1

83

2 1

15

28 .543

11

3 "

86

1

89

'1'

48 :445 9

1. u (Mo I f

. "

" 11 402 .015 257 .500 6

. ", :

4 540

, :

3 832

:

98 41h A 1, 1

as

9 .

. .

)

H-1.1 . . . . . . . __ 'Hawai -

Los An

g

el------- is,, a) b,.Io,)-

.~IS 4 " ." a

.192

4 3011, :911Is1 S37 :~1717a a, 1 3 :41 1

43 16

: . 1

547 755

73 781

1 .230 958

50 1

11,313

951

8.25 ,

1 .8 3

ph, 69 . 236

enix .-. . . . . . . . . . (Alilons) ------ -

Per fland ------- I

Diego,) 1,38 92 :53

7 7621

681,72 5

900 162

14,725

51

31 15,

7,307

39 .538

83 .05 4

120,853

:

181 603

263 .374 1 :9,507

1 .78D

2.357

10 .79

8

20 064

Soon _. . . (Nevada). . . . . . . . . . . --- 3 13,185 217 :60 ..9 3 .469 21 .359 57 .267 308 489

:

6 80 3

ity

`c

h) . . . . . . . . . . ----- -

T" '

3

5 4 .866 371 .373

9 "" NN

41 4

3'

100 120 53B 2

9 I

a

a .. Sea is) hot..) -------- -

S.Ot!. .. . .

.

. ----- (Washington). . . . . . . . . . .

1 2

41 17

:157:0

31 .2'1

64 :2'02

42:! 1 1

2

a

592

Is

20 .752

:

QI Boo

151,743

: ~

if 71 98

311 4 71

S .7

0 4

1,7 "

7 .369

1 .31 1

1, Z3 :'

office of intm .~ - 712!

'"I'l 0 .'firm.

. .

11 1a7 174 41 1 2_3103 211 31

1, . ft~ ~'

'13

,

Puerto Rwo__ . . . . . .

Oth- .. . . ... .. . .. . . . . . . . .

2 :7 7

32398 .900

73 :73 ,

301 .20a 1

.01

2 .002 1 236 1

54 3

28,396 1

143,979

4,932 1

2 4

769 1

55

414 1

6 1

943

California. . . -------

(it) Ohio ----- ---------

Pimasyl-is-------

I ~ ------------

11,398

1

6

.0 '3.1a~:611

5,632 '4

6 32 .2.0 3.3 91 : 1

.13 75

Total for States not she- so . . .

7 " : " "

1

:1421

7 .053 .850 '36

3,965 .724

4 :~35181 2331

4 .4

126 .247

93 .6 9

290

90 AS?47

7' "' 8 3 :(]67

141 .474

72.386

89-584 3,4G

51,436 75

.060

.it I " a,tl,ltld far de,1s,suars, not moil .tals by district .

470 this

" 1

4708 not available by districts to, lal

Includes FN-s

7

004'

.

7DO5, t' ot .1ne, 1120L and M, "0 . 990C,990P`au`d`mtO'T not available by districts.

" 3 - "' 50312

994 :132

467

'~O

56T036

440,590

2 2 I

:1

: D'70 , 413

1 .233 :1 3

aaa 593

1 .100 .146

1,359 .199

20,017

13,678

23 .032

1 :~41

fG 11 8,517

15 .626

11 .646

21 .145

1 :73 " S 13

11 .49a

122 .871

56 107

88: 926

61,407

6496.215 369

77able S .-Internal Revenue Collections, Costs, Employees, and U . S. Populations, 1943 through 1972

Operating Cost of Population Ties

Number of employee s

Fiscal Year cost C.Ilectimes olle,fin g

1100

(Thousands) Pon

imit. Total National Field

Off"n

(1) (21 131 (4) (5) (6) (7) fill

------- 3 ' 3 '1 '

2 .171 116 111 0 44

N"

113 1 3 . 13 3~1 31 96 1

-------

1

129 :I 4 J 4 a

0 1, ,: 0 :

4 1 Z3 0 :32 a 1:I

. :S C

4 7 .

:

4

2

N

.

41,898

1945. . . .. . . . . . . . . . . . . . . 145,390 .720 43.800 117 111 O al 4I "1 3 " 11 41 I I 4 , 4

1

37

194G 111 11 .64 0

5

~ ~~A

40,67?

C 1~ 1

2SI

~I' In a .~ I 5 ' f'

4

~Sa

54 9

1947 -----------

:

203 91 6,82 2 39.108 .385 .742 0 .52 144 698 270.28 52 :8 .30 4 771 48,05 9

194F ---------- ------ ---- -

949--------------- ---

183,73LOG O

209,205 .715

41 .964 .54.1 .295

40.463,125,019

1D 5, :4 1 147 20 8

149 .767

284.39

270.17

5 .',14 3

5 ; .266

4 662

4 .554 a

7 :4

47 7N

1950 -------------- 230,408 .200

'NU'1 "A N ' ` ' '

4 313 11 141

951 -------------- -------- 45,869 .533 0 44 5 :311 B 1 111 JIS H

3

"~ 5

~0'B

4

I,1

'' l 172 111 61~ 19 III, G 0 .42 157 .553 412.G2 55,37D 3 .844 5 11

53

1954 ------------- -----------

,~P : .. :

806

268,969 .107

:

68G 35,3M9

69,919.990 .791

0 .3 3

0 .33

~a4

12N"

435,00

428.89

53,46 3

51 .411

83

1 :707

"

1 :S a

49,704

;71 134 271 11 .21, 1,, 1 0 42

1 N'1 ' 'D

2 17

'

a56 iya :.94 :,

11

I" : G :

7 1 1 1 110 :4 11.0 3 1 44N 1 I

50 8 2

: 5 .

~ 3 IS 01 1 ~ .7 . ' 1

00'

OX 171,994 46G.16 51 .31

' 11 2

1958

1959 ------

337 .428 .789

355 .469 .229

79 .978A76,434

73 .797

.972

NG 0[1~4al 4' I77'a 74 ."30

33

4"48:73

'B

so a t

200

2 :211

2,G33

4 815 8

41 .56

7

1960. --------- 363.735 .359 714 1 2 1 1 1

"

1 41 : 11 171

1 ' ' " "

1. 112 41 11 1

1961_ --------_------------ 413,295 .238

Ol : :

94 0

8

:4 6

B: 44 Is,

69

"

.3 11 IN.3

, 310 :G4 ~

50

11 2 :~__ 451~=,410 11,440,839 .245 0.45 186.538 533 .09 56,510 3 :357 53,15 3

96

3

1964 . . . ---------------------

10 FIM .314

5490,692 .13 1

105,925 .395,281

112,260 .257,115

0B:47 ~ja11 .S14Z

. 9

111,14

585.03

la,411 6

59 .357

562

1 75 3: 3

55 .92 4

S5 .GD4

1965 --_------_--- _ 117 .3117~47 1 114 .411 .633 .721

'

3 1

N I "N5

IID

1 '

: 171

1966_ --------

I24

'861,929 128,879 .961 .342 0 S

~ .

G 6 ESI 6S

:~19

If N. 12

'7 : a

87

1967 667 080,295 148,374 .814,55,1 1 41

0. 1-

746 .68 65 .112 4 11

' . .

MIS

1969 -----------------------

4

72~7"N i" :147

7a .11 1

!'~JAVIIU5 .668

0:, ,,

0.40

20 7

1,677'

'0

a :4. 1

7 '27 a "

:~177

n4 0 7

T :a

.31

G 23 1 : .

60 .a7 0

1970-.-- -----

---- ' _

986 . 159.16Z 195,72? .091 .1!)1 0.11 ; . .11 a55 .11 68 8

09

4,356 63 74 2 1

I.q?l : _

0

15.17

"'

111 E47 I11 1 1 1

0

115 1 1

9

'1 "

, 6 6

4

972 -----------

' .

:3

1

1

27 90,4 1

2.9 : 55 : 'T : '.1

6 0: 54

. .G.: 8~

.

7 4 1ad, 4 : 82 1

~

69

:

I U-sed .

116 11 7

4'1-12 0 - 1~ - I
Table 9-Number of occupational tax stamps Issued, covering fiscal year 1972, or portion thereof, by class of tax and by Internal revenue regions, districts, and States

Distilled spirits

Total Rectifinn, Retail deal . .. Manufacturers of mm -

Internal oteenue r.th.- doftrict, and States (States

n

umber

of acco . Manu.

b .11.9. product.

represented by littgle di,tocts Indicated in pat I

IWhole. sells.

M

,

.fall to, other State. Oman .1 bottom of able)

I

.11o,

Less

"'-

.1 .

into Not Net Man,

stamps .1 than do,far, spirits ... a . . the .

11, ad fill, ~D~~ n,

`

2

55 Retail At $54 coodl.9 cauding 50

$55

Tfn ,

or

dealer' large

2 5

so gallon s

ff."an ,.fD, .

-2

p

-me $54 sm Italian

$25 '

9.11 -

$50

$]DO

(1) (2)

1',

(5) (6) (7) (a) (9) (10) (11 )

North-Ati-tic Real

United States. total

.

. . . . . . . . . . . . . . . . . . . . . . . 419 .493 IS 29 101 2,592 212 .679 1 176 666 108 39 636

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

A

65,118 ZD 1 26

,

lbrmy~ 454 33 .418 235 349 9 5 142 .. . . . . .. . . . . . . . (Sao (c) below) . . . .. . .. .

A t

5,902 2 ._ ---- ----- 9 3.791 Is -------- -------- 1 3 ugus a.. . .. . . . . . . . . . . (Maine) i --------- -

B t (M

2,574 ---- --- ------- 1 3 1 477 4 -------- -------- I I

os on . . . . . ----------- assachuott -- -

Brotidyn ._ . . . . . . . . . . . (See (c) below ~. ........

7 .929 3

11 .643 1

1

--------

5

3

85 6.572 38

37 6.199 23

340

_ . . . . . .

3

2

1 2 3

4 6 B yr

uffaIo. ._-_. . . . . . . . (Sea (0 belo ------- _ 13 . lot 7 --__ ----- _ 23 8.0011 67 1 1

--------

2 16

1,e

tiomilon. . . . . . . . . . . . . (Vermont) --------------

toff

.rd ---------- N"`""t"uI)_- .. . . . -

1 .483 _ ------

6 .484

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

_

___

2

2 523 2

25 4.697 28

4

3

..... . ..

... ... ..

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

M .nh 6

(Sao (t) below) ---- . . . . 12 .634 4 . . . 12 257 6.160 19 ------- 2 4 1

T

(Now Hampshire) ----- _

P W

1,805 -------- -------- 1 2 604 5 ------- -------- ------ 2

,. .nC . . . . . . . . . . . . (Rhode Island) . ... . . . . . .

Kid-Atl ti R i

1 .563 3 --------

--------

.. . "

13 1 .437 31 ------ I ------ - 4

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

Ba"Im"'

.

- ----------

(Maryland A D .C.).. . . . .

49 .936 29

9ZI . . . . . . . .

4

2

1 72 210 34,739 46

45 5 .235 10 2 _ -

j

151

N-k- 16Te w jmsel) ---------- -

P' "

12 .358 I 7

1

10 94 11,198 29

.. ... . . .

- ---

.. ------

------- -

1 99

e (

b:,.*ww~: : : : : : : : :

11T.bteil'It IS,. (:~ b

g

1 :5

" `5. 27

1

5

11 1:1" 1 1 -------- 31

Richnumd . :_. . . . ... . . (Vugmi.)_ --------_- 7 .25

7 2

209

1 3' ------ .

1

3

3

. . . . . .

. . 4

outheast Wil .l. l),lawane) re. ----- -

l

949

5 991

1 . j

0 8

7

-----

-------- --

APant . . . .. . . . . .

. _ ---- ------- I ------ I ------- -

-

2 . 3

' IRS ----

7

--------

1

- ---- -

129 9 .931 ------ -

'I "" --- -

.

ii

2

5

2

2

B,r 1 3 .gh.m .-- . . . . . . . . . (Also . .

.):: : : : : : I:

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

6 647 4 1

--------

Columbia 3 .---- _ ------- (South Canantuo-_ . . . .

G b N t

8,31D ._:: :

' omns 4 977 -------- I -------- -------- 2 on . . . . . . . . . . .. ( or h Carolina)---------

H 1 4 i

6.259 2 9 211 -------- 4 . . . . . . . . 1 6 . 51 o l -----------

Plorida)'.-----------

" '

5,783 1

15,942 ----

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

1

1 878 . . . . . . . .

52 4 .691 --------

. . . .. _

---- ---

I

4

_

1

3

Nashville ( 1 2I mmaccuse) .---------- -

l i

6,831 .. .... . . --- 26 937 . . . . . . ..

-

2 . . . . . . . . . . . . . . . . 20

an

Cil Reg on . . . . . . . . .... ...... ...

ll

i

" 1 d

52,655 11 9 17 333 31,348 60 11 74 19 3 8

mn

CI_u" ( :: ~ 1

nd IS d b :

1 :151 5 --- ---- --- __ 55 4.179 7 1 34 15

Detroit --- -

~Michigan) ----- . .. . .. .

12

007 1

16 .393 . . . . . . ..

------ 31 11 11 111 1, . :, 21

DID zz

1. 4 8 4

16

Irds... I . . . . . . .

L i ill

8,939 . . . . . . . 2 --------- 22 5.536 10 1

......

I c

ou sv e (11"

luck

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

Parkereb .q . . (West Vilyginu,)---------

3 .614 5

3 .551 . . . . . . . .

2 . . . . 1 3

. . .

97 1,763 --------

Idwe.11 Region -------------------_- 3 639 5 " ----- IS- 4- -------

-

Ab d W ij : : : : : : : : : 1 1" . 1

310 44,931 60 1Sfi 8 8 116

er een_... . . . . . . . . . . (South D0 1

Ch l

2 : 71 ---- . . ... . .. _ . 10 1 .004 -------- I ------

- -------

-

I

, J~D . . . . . ____ . . . IS. flo be ow) ---

Dear onines (Iowa)

13 .422 . . . . . . . .

5 531 1 . ------------ . . . . . . . . . . . . . . . . .

....... . 5 107 11 .559 233 fi j 3 55

F.;g. . (North Dakota)

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

,

2 11 . . . . . . .

------- --------- 2 2 .956 3

,

' 2 '

12

2

. . . . . . . . ...... . - 5 M, wtook_ . . . . . _ (th,sessem)

. . .

:: : : : : : : :

.

1 . : .

039

: :: ::: :: : : : : : : : :

94 12 :600 ---- - 1 D 1 ------ ------ -

St L . . . . . . . (Nebraska) . . ... . . . . . . . 2 .111 . .. . ... . . . . . .. . . . . .. . . . IS 1 ,9641 8 ------ 4.

ou M-10. . . .. . . . . .. . . .

St PauL : : : : : : : M t

10 29

. .

3 45 5 .759 277 4 2 4 . . . . ----- inneso a)---------- _

Spinth.ld (Sao Do bel

7 94

5:3 5 ------ V : : : : : : :'

1 11 2.622 152 19 1 1 1 5 . . . . _ . . . . . . . ow) . . . . . .. .

oth-st Region ----------- ---------------------

2

64 .115 is 2

3

--------

64 4.459 1

573 17 .71? 161

3

75

. . . . . - -

1

-------- 3

Albuquerque.. --- 44

. . . . . (New Mcolo) --- 1,311 ------ _ I ... .. .. . 23 1 .214 ---- I . ... ..

------- -

Austin ----- Mbelow) . . . . ....

Ch

22 .6 2 3 ----- ---- . . . 232 2 .682 41

5 . . .. . ..

eyenne . .

(W

r d

9,018 Ji-

: : : : : : : : : : : :: : : 1 .1 1,643 ---- -

895

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

C . .)----- ------ -

Littl R k

4 .629 -------- -------- --------

2,

e us . . . ... .. . .. . .. (Arkansas) . . . . . . .

15 861 47 67 -------- -------- 9

. --- - hat

n'

. . ) ---- ------- -

i - ~L

2 .728

ID .827 1

.

1

. . . . . . .

--------

a 773

1 1.311

------ -

1

----- -

: : : : : : : ----- me . )

Oklahoma C. j: :: ::: :: :

Wi hit

7 .248 7 -------

: : : :: : : :

19 1

. 055 . .. . .. .

.

: : : : :: :: :

at..c. glaa .s. .. . . . . . . . . (Kartuto_ ------ -

I ber

4 .938

6

----- ------- 34 1 .293 --------

I ------ - ------ 3

------------- ---------_--- 6,SM 4

87

11 23 533 35,49D 5 54 ii

86

able . . . .. . . --- . . . .

. &debt). . . . . . . . .. . . . . .

6 . . . . . . .

2 .214 1 .

... ... . .

.. . .. ..

. . . . . . . .

. . . . . . . .

1 705 -----_

2 659

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

-

"

:too . . . . . . . . . . . . . . . . . . (Matters) .. . . . . . . . . --- 2.077 . . . . . . . . I . . . .. . . .

-------- -

1 1.260 -------- -

-------

----

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

4 thou u . . . . ----------- (Hawaii). --- _ .._ --- 1 .377 . . . . . . 2 . . ... .. . 25 1 .147 -------- -

---

-- ---- -

--- ---- -

- ----- -

------- -

-------

---- _

. . . . . . . . . . . . IS. is) b.Im,o___ --- 21 .713 2

------

. . . .. .. . 2 9 113 12,978 1 41

-

Portland 0 :

3 .531 . . ... .. . .

1

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

303

59 2

1

.9. . _ . ... ... .. . ..

Reno. . . . . . . . . . . . . . . . . . 04.00. . . . ... .. . .....

.21 ------ -

3 .391

I . .... ..

1 :

37

M

2

S :Il f1k C I,:: --- : :

: : : : 1 .

.7

.......

'

.... .

- . -----

-

---

. ,..

--- -

s

S ..IU . W h

1,

.921 3 5 19

- 3, 2

76

--F

31 .. . . . . ... .. . . . . . . ( s orght.)_ --------- 1 6,226 --- _ . . _ ----- 1 77 3,078 - ------ - ----- - 2 --------

S

2

Total- for State. not h- . b . .

4) Calif.,..-, 31 :634 3 7: B 2 4 41 76 . . . : : : : : : : : " l la i

I

(b)

(c) Mass, Yo 11

Illinois- is 8 171 ..~817 1 3 3 .

(d) Ohio --- A 19 3

,it . . . . . . . . . 43,29D 4 747 1 :: 15 326 1 111 . f,7 1 5 3 158

38 8 (a) P 20 22 F 2':3 '0 T 5 62

.nn3yl (1) Tas as -------------- 31 63D

171 .118 6 4 2 064

----- ------ 7 1311 4,577 114

5

1 20

Table 9-Number of occupational tax stamps Issued, covering fiscal year 1972, or portion thereof, by class of tax and by internal revenue regions, districts, and States--Continued

Wine Beer

What. . deal.. . Retail dealers - Doeenns Tampa.

lntern ;l rmenue r,gi.r,. districts and States (Stat - - d."I.`,, Imo-cilby mill. districts indicated 1.

other Islas shown at bottom of Whole- Retail d'eselel l table) Wines Win., 500 dealers . at r.

Wine, 11,tor and Win., and barrels d.l,,,, $24

1 ' 1 i

1255 own, $54 b .1 . a, mm,-, $'14 .(, bc,.r) $255 $54 fUf $123

$2.20

Per

. nth

(12) (13) (14) (15) (16) (17) (18) (19) (20)

United States, total_ . . . . . . . . . .. ... .. 269 931 04 56,402 140 S'sle 115 .5112 39 4 .116

North-Aturific Rest.. . . . . . . . . . . . . . . . . . ..

Albany.. . . . _ -------------- (Sao (,) bel. maj -----

415 29 106 3.678 13 629 20,239 26 475 5 130 Aug,sta-- .- . .. ... ... . .. . _ (Mamto -------- 7 38 36 --------- 81 1 .953 4 9

shot --------------- _ -----

(M-hu`tU)- . . . . .

374D

------ if 1 .265 2 . . . . ... . . . i i s Brooklyn . . . . . . . . ... . .. . . .. (See (c) In la -

2. .3~ 315 1 45

But ,

:1.

. 6 218 4 950 I1,e ,) t .. Miele N . . . . . . .. 10 272 5 177 4 :249 3 2566 .-V

Hartford -------------------- ,,,an, : : :: ... . .:: (Cmmec cui)---------- 2 9B

21 4

G 932 ------- 2 94 . . . . . . . . . 4

27 1.440 1 140 out

Iss (cl hot-) 2. 2 23 I'DISO 88 4 .9D9.... . .. . . . .

Prodde,ce--------- ------- (Rhode Island) 1,f4 . _ I I 21 21.0 11 1 6 f

Mid-AtlamtIc Region ------------ ____ ------------- ------- ij- 84 7 3.639 , 3 -------- j ------- jjj B.Ifinnon,_ yle 364 1,690 6 Sol

Newark. . . . . ~14 of & D ML no, .C~) 1 313 171

2, ... . ..... . . . eV,,: : : : : :, : 4

' 1

Pol.delphs--------- --- See (a) be 4 - -------- r

as 1, 00 311 1 3297

Po"o

h-::: : : : --- below)

R .ch .:'.'d . ------ 60I 1 8 606 3.4'19' .. . . . .

Wil .ing.11------------------ (U.1sw.re)_ ... .. . . . . . . . . ... . .. 2

2 2,636 1 61 84 ... .. . . . . . I

S.Uth. .t .. . . . . .

.612 . . . . 9 11 . .. . . ---- 96 . ------- ---------------------- 1111 174 Atlimt.. . . ... . .. __ ------ -----

IS '

12 694 33 30

Bit m9hen- ------------ : :

j"ec"ItO .. . ... . . . .. . .. 5 14 12 2 .008 . . . . S., T0,28 .. . . . . ..

Colinth, ----_------------ (South 421

Allb-o" ------- 21 ---------- .) -- ---------- 7 23. camhto_ ----- 8 172 Greensboro----------------- (North Carolina)-------- 1 2.178 . . . . . . . . . . 20

2.034 .. . . . . .. .

Jasksum --- 6 41 95 1 .693 58 4 '78

.. . .. . .. .

Ann"ITO . .--- --- _ --_- -.. ..-F

1

22 11 Florida) . . . .. . ........ 3 5 14 6,7254:11 ---------- ii

N .shaill b _)~ . 66 _.. . . . . .

66 . .. .. . . 1 12 . Central Region . . . . . . . . . 1 3,368 . . .. . ... . . 11. . . . ..... . . . . - : : . .. . . . . . .. . . ------ 26 25-57 L2 .

Cincinnati ---------------- _ ~Sm, ~ 728 598 d

III beer 111 121 Clentimul ------------------ as 1 ot 96 31

2 :11 3 40 756 79 . . .. . . .. 1 .

3 GG 1 Dan

Indum."Iii ------------

. . .. . . . . .. . 9 170

4 Is 11 1

14 4.275

.802 . ... ... 192 3 1

1 74 58 96

Lounstoll, ... . . . . ----------- (Kentucky) . 1 1 34 54 "k-bung. . . . . . ... wmd 'West Virgin 6 107 1 .474 2 22

Mid P 2 .018 2

1

.249 Ifi R-2 b - --------- ------ --------------- 1 .374 3 l'"i 6 Alba,olmm .. . ...... (South Dakota) --------- ----- _ _

chi, (Sea (b) below) . . . . . . 7 .2 . . . . . . . .. . 3~1 . .. . . ... 43

Des -to ------ ------- ---- Mm ;es 54 147 t .018 -------- 41 1 245to --------------- _ (Iowa) ----------_--- I ---------- 4 Of 2 132 2 .?97 . . . . . . i"I"I Dakota) .. . . . . . . . . .

Mi Wacmsin) 163 . . . . . . .

. . . . . . . --- ----- 30 _ . . . .. . .. 38 93 . . . . . . : : :

Sl ltkb~ _-------------_--- Ory.h. (Nebraska) -------

5 5, 300 36 310 3 .725 . . . . . . . . . 830 ---------- -------- 60 _ -------- 67 site . . . . . . . . . ......... . St. Paul, _,ro ~Mi -------- . . . .. . .. . .. 70 16 154 3

Soong

Mimmusaft) . . . . .

. 80 235 4 166 6 2 :49'6 --------

,',I-

(See (0) below) ...... ... . 125 3S. 10. 3 123 191 .. . .. . . . . . 292

Albuquerque ---------------- liw~ iiieiw~h:-------- ---------- ------- 2363 8 833 31 .164 _ . ... . . . . It 3 Austin

' gmun- 6 ------ So 0 below) --------- 4 13 -------H' 6 .06 35141 12.7497 --------

. . . . . . . . . . 40 94 .. ... . . . . . 10 C . : ::::-: -------

D . : =Xmo - ---------- ----------

.

. ... .... .. . ... . . . . . . . . (Sao (f) bek, ;;j,: :: Is 41 3.257 2 122 3,392 .. .... .. . . 11

Lit

'ut R . . . . . . . . . . 1, 1 144 2 65 1,281 ...... . . . . 6 a 3 1 99 . . . . . . . T 44 1.295 .. ....... . New Orleans ------------ --- U-stiM... ) . .. .. .... . . 90

11011111 ~Iklutyonk) 1 3 1 1 91 3,224

e IN

chi

ft. . Realon. . . . . .. . . . . . . . . . . _n He -')~ ------------- ---------- -- -- - 55 77 3 267 A . .;i. :

W A. 7 93 12,"2 9

M

chorale. . . . . . . . ------ ------- R

22 496 12,207 . . . . . . .. .. 6112

.i--------------- _ .... .. (Idaho) -_-----------

.. .. . . ..

f .f2 4

-8 - ------- a- -------- 30 33 . . . . . . . . . .

an.) ------------- I -------- . . . . . .. . ..

.. .. .... . . 56 500

HtmbIuw : : : : : : --- . . .. . . . . I'll 23 . . . . . . . . . . 23

I Los : : : : : : : ------- ii - ------- -------- 11 3

- : : : : : : :

: 39 3 .042 1 04 5 .02236 ------- ijj

Phoo-i fP. tend _---------------_- (0o .shm)__ --- ------ 7 44 -------- 2

.835

. . .

. 19 279

R

." 244 59 no Sell ~1411.dl) ------U6 1 74 12

I his). b.,.I. o-) ---------- .. . .. . - . . . . . : : : : 26 979

U

San Francisco----- . . . . .. ... (Seed, 39 3 - ------- S-1 44 96 131

Seattle . . . . . . . . ------ __ (We ingtcn).. . . . . . 3 56 13 2

. S1

.233 3 3D . 3 ~2 2 .694 . . . . . . . 395 643 . . .. . . . . . . 4

Cafilmnu_ . . . . . . . .

Illimi- . . . . . . . . . .

~0 Ner York . . . . . . . . . .

d) 0 ------- I— .. . .

~ .) pemmylinou . ... .. .

f) T .. .. . . . ....

Total, to, State, of how . . b . .

567

41

13

4

4

14012

3

33

3

28

689

52

31

2

72

6 .593

667

1 .585

5.9&2

70

9,663

64

12

4

204

236

270

114

126

42983

7 .717

61 2

15.961

Hil

.27 5

16 .139

1

21

51 6

53 7

28

14 5

I D

29
Table 9-Number of occupational tax stamps issued, covering fiscal year 1972, or portion thereof, by class of tax and

by internal revenue regions, districts, and States-Continue d

N .ti.e.1 F luor- Act

Dealer Colo . Adult,, -

Manufacturers 1,00ste, Mandfar. only in operated led

or lospostans only of hire, . ." weapons ranning pinsess of Waghn~erpnr,l, r-ruestogi,ey, districts, and States (State s

a noted by in III, it stricts not cro,d in pa,,,,th . . .

____ Dealer

in fee.

weapon ,

lassihoul

or weapdn3

d,issifirld

cles,ified

as ;'Ary

devne

ptennsr' b .11vatedutt oil

ing ,

$50

youls for other StAre; shown .1 thettles ul table) s-, . s i'A.y

is

;'A.

c y

O

her

$250

P

ned

$500 $5

.

Class 1, Class 2.

Class 3 ,

12

O

he,

WIsts-"

Class 4 .

O

he r

Weapon, "

clan 5,

We.

po n

Class 1 ,

$10

device bass ,

325 $2 5

(211

(2 2t

'23) f24) (25) (26) (27) (28) (29)

United State, . total . ------------------ 10 If 149 5 6 92 15,605 59 1 .666

N.rth-A Basic Region ------ . . . . . . . . . . . . . . . . . - ,

t

3 9 22

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

65 3 13

Ahady . . . . . . . . San B .I ..)_ -- -

_- _

--------

. . . . .

: : : 3

I . . . . .

~ _~ :

Boston 111 1 3 6 ----------

- ------

1 ---------iz - --------- -

11-1, n -

'

~I

' ------

B e ----- _. . . .. .. . .. . . . . . .

tjft .l ~ S

11 .11holit"d~ ~ ------------- ( venrell) ---- -------

. . . . .

- -----

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

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

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

Hart did -- --------------- (C.n .,cti, .t) ------- --

14.3hattan ---- ----------- (Sre B I hot-) . .

- - - -

-

"

5 2

12

--------- -

-------

__ . .. ...

-------- 1.

--------- -

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

I' riscrouth --------------- (New Hampshire), - . . - : : : : : :

,

----------

I

~r ------ -- --- -

I

Flov,id.-. . . . . . . . _ (Rhode stand) -------- -------- - .. . . .. . . . . ... --------- - - 4

Ifild-Atlarti, Region . . . . ---------- I- - - - -

11 .1hunown IMa,yi .nd & D.C .) . .. .

'

. . . . . . 2 . .. . .. . 1.

-

15

I.

. . . . . . . . . . 3 . .. . .. . .. . .1.

4

1 19 I~I3 I1 1 . . . . . . . . . . . 144

Newark, . - _I Vy, Ilium) ------- : - - ------ - ------------ --------- _ 15 ------ -

Plrilad .bhia~ . . . .

. .. to) be.

.) ---- - -

Pittsburgh.

is a el below)

------ -

. . . . . .

-----

_* . . . : :: - ----- 2117

i

3.

Ric end- : : : : : : : : :: : . .. . lV11= .-- -

W.I.IoUrn ----------- - (Delaware, . . .

1

. . . . .

3 ------- - --------

. .

. . . . . .. . .6 . . .. . _ . 228

-

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

---------- -

7

---- -

So.

Uneasy Region- _. . .. . . . .

Atl .ood~ - -------- ------- (G-Rui) .. .. 1 2 4 2 53

i

2

in

3

Multaire .) ---

South Carolina) . . -----

. . . . . ~ _

-

- ------

_ . . .

-

--------

I

I ----------- ----------

-

a

---------

1

2.480

. ... .. __ _

----------

6

Greensinlie : ------- ------ North Carolina) . . _ ._ - ------ . . . . . . . . 3 ------------ -- : 1 50 1

la"""A

--- ___ Minis'i pp .), ~ . - . . . . ... .. . . . . . . . ~ . . . . . . . . . . . . 2 569 --- 71

Jackslovill .. . . . .. . . . . . . . . nFiclidel . . . . . . .

Nashville ------------ I Tennessee) - -

: : : : : :

7

3

1 3

1 311

---------

. . . ~

'

Gets

tra

I

Region ------------- - . . . . . . . I,

L~

538 IF 41G

C and Se" ~d 'lcrwj~ fS11 d~ D _ baidiv . . . - -------- ------

3

466

82 2

2

3'4

Detroit --- Michigan) . . . . . . . .

' ~

. . . .. . . . 7

~ : : Irdfisnii) ------ - a '

L, avilfi-__ ------- Kentucky)- . . .--, . . ---

------

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

. . .

----- a'

39 7

13

1

1

231

31

.Udwe at Parkersburg P . . . . . . . . . . . . . . (West Virgin is) .. . . ..

exion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . ... .. .

I

. . . . . . . .

--------

. . . . . 26 568712 ------------

7

85

Aberdeen _ . . . . . . . . . . . (South Dakoh) --------- --- ---- -------- -------- ----- ------ ---------- ~ I " 1

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

C N

agd_ . --------- __ (See (b) below) . . . . . . . .

Co . Mein . . ... . . . . . . . . . - (Iowa) - . . . . . -

_.. . I

- : : -- :- : : '1

I

--- ------

i

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

--------- -

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

7

7

t a,

R

h I

!"on Unko 3)

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

----------

3 1

hil'sup".. r

Ondah ---------- -------- (Nebraska)-

i

- ------

__

-------- 12

. . . . . . . .. . . 4

SIS . Llui-------- ------ - 0"I'llooll) ---------- - -

. Paul --- -.. .. .... .. . (Minnesota. . . . . . . . . . . .

------- -

.. . .. . ..

------- -

.

----- -

. . . . . . . .

- : :~

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

"S

17

. I

Sunlit N) "In.) ------- -

Southwest libeg . __ ---- --------

--------

---

- __ ,

6

4

2

----------

al

3

2 .599 is

5

14 0

Allb."'onfu . . . .. . . . . . . . . . . (No . hil --------

--- : : : :: . . . . . . . . . .

Aust . . . . . .. . ... . . . . - (See if) below) . .. . . . . . .

C Bay 'on.

.

. . . . . . . . . . . . . . Wricirrilg .. . . . . . . . . . . .

Dallas --------- (Sel 01 below) ---------

. .

. .

--------

.. .

1

N

. . . .

6

------ --------- 98'

------

------ 2Pill1

Deb ... . .. . . .. .. . . ... (Col. .. do) 116

Little Rock . .. . (Arkansas) . .

New L.uniarl) ------------ --------

-----------

1

365

1,07 3 1 ~

Ohl home oushoore)------------ ------- -------- 3

,

fainsWighia . _ --------------- fKansa .) .----- -

t, Region - ---- --------- -

Anchor,g. . .. . .. . .. . .. ... . Alaska) ---------- . . . .

-

. . . . -

---- -

-----

- ---------- - ----------2 15

95

3 .121

----------

It- 820

1 15

Runs' _- ----------

ars) . . ----------

-- ---- -

--. .

-----

.. . ... ------------ ------------ 2 93 ------

2

9 1

Honolulu ----------- I H-4) --------------

Lee A.l.. . . . . . . .. . .. .

.

Sol% (at note . ... . . . .

------- -

1

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

4 . .R~. . . . . . . . . . .

Phoriell ----------------- (Aidtor.r.

Pis rile nd _ ... . . . .. . .. --- (Oregon)----

2 ------------ - 25

"9

------ -

: :, : --------

3

2

"Ono ... . . . . . . . . . . . . . __ (Nevada) .

----

**

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

1,70a _ ---------- 12 1

Saint Uke C IV-_.. ... - Utah)_ -

a

;1..

1

S Fruncinn ... ------

-

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

11

41 8

86

. . .. . . . . . . . 409

2

Seattle .. . . . . ... . .. . .. : :: : W~shml . . ... ---- -------- -j ------------ ------------ -- --------- 5

1

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

1

76

~in California. . . . . _ _

.b) Illinois . . . . .. . . .

(.) N ". ) " %

fit ) Ohio . -: :: : : _ :

(e) P an o1;

U) To- ----

- I c lend, I I br .-s In,. than 5DO bbi, C, $55.00.

120

Total, I., States but how. abov e

4 2

: ----------- 4

45

171

90

2

11B2

1I

----------

2

51

2S

Table 10-Number of returns examined by class of tax and by Internal Revenue regions, districts, and other area s

Region, service center ,

and d .st,i,t Total

Indfividua l

an d

fiduciary

Cerealstion L,Ial . Gill Ii .em

Ersplo~-

dean

Edrep t

,g

Ill,rth-Aflart6c Td"I _ _:_:~ ------

1 695 849

' :

1 342 BID

'

135 .99

3

32 67

'

5 7

1

. 0 026 69 521 18 0 6 9

NO -Atlanti . : : :

304 797

742 682

257 :986

111 1

20,485

5

:42 1 29

:

9:323 7 :193

, if

. . . .. .. . . . . . . . . . . . . . . . . . . . 3 :8

Southeast d -----_-------------- -------

,

224,648

.: 1 7.1 21

1, JI.Z.

3 :7

3 250 72 ' : Z

Dj I I 2

Central ----- - ---------------- . . . . . . . . -------- 109

218,019 171,014 20,321 3

6 17 "

If I14

'

' I

1 2

7"

1

5GO

Midwest ------------- - ----------------------- 2 82 2 _ _

Southwest ----------------

234,406

In 459

175 .2111)

130 198

Z2,46 0

14 0

5 :8 4 8 1 J. 3 I D jO : ,, ~

3

: 690 -- ------------------ -

W Aers, ----------------------------- ----------

'

278,516

.

212 117

. 2 3

1 .1

5

3 .490 1 .297 16 .796

"NIt "

11

2H

9 1

International Oper.ti . .a,-,, .

---------- -

N.rth-A Inintm Region :

. . . . . . . .

I

15,3ZZ

I 1, : 2

269 281 33 14 .58 6 ,

Se, ice Leste r

Albany . -------- -- _----------------------- 13.146 10 749 659 333 61 887 44

16

AuB ust ------------------------_--- -------

t

5 ~ 797

4 2" 3

142 25 3

ii~

3 7I 3

es

:: :::: -::

Blo ,

41:114 33. ~11 3 .788 943 160

1 .

464 645

Belief .- ---------------

30

40 .699

69 243

34,211

3 04 5

3 .1 I1

995

64

156

141

1 .27 0

1 065

790

947

I f

68

Go

dingier, . . . . . . . ------------------ ------ -

H

4 .350

'75

3.

2i

2. 10

.

3 2 4

5?

artf,,d ------------------ ----------------- -

Md.hatt29,H)a 23.916 2,159 612 184

1

. 05 1

1 1

223 1 -------- ------------------- ------ -

Ponseroutt72 .595 53.997 4 .944 1 .803 554 1,763 1,781

' .746

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

Providence _ . ~ ------------_--------- ----- -

AH&Atlarti, Region :

7,20 2

9 .366

C

.

200

7,674

552

877

8

2

94

22

IG

2 0

464

313

225

13

16

S vice Center

. . . 11 618 3 1 84 1 3 .111D 703 154 1 330 I D5 981 : : : : : Nowuk

Phil d l h

7, ,G : , :

, 7a 6 437 ITG

2"

,

3

'' '

:

1 4

'

a e p is ------------ __ -------- __ . . . .

Pi tt b h

50 44D 3U 7 5s 4: 3. C. 7

I

14 2 :56

' .03

~ 1 0.

. . .. . . . ..

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

R i .,g --------- -

i fi re d

29,956 22 .819 3,615 GSI 251 1 .714 885

.

21

l r n ----- ---------------- ------------ -

Wilmin ton

3

7 : 1 ' 1 '

1

7 0' So . g . . . . . . . . . ... ... . . . .. . .. . . . . . .

390 141 1 .11 7 2. 113

theast Begin,

1

013 . 41 1

1 :

71C 68

DO 342 ~

99 33

5 "i'a carte l

Ationts, -------------- ----------- _ _

Bunnimph,s . .. . . . . . . . . .. ... . .. .. . . . . . . . . . . . _

36 .177 28 .999 2-315 423 111 1 .459 1,317 1 .553

22 .11

A

19 1 : .111

4

147

T4~

653

131

948

G"onse.

1 1111 1

" 90 30 .80 2 .770 484 19,

" 509 .

654 1 4

.Jackson . . . .. . ; ------------------------------------

""

8

.7G6

1

16 .012 970 203 114

.. '

9

Nashville , : : : : : : : : : ---------------------- ------- I -------------

Central Region :

57.416

32,059

44,547

23,835

4,70 1

3~499 1 .2'

1974

7

(121

:9G 5

3

1 . "151 IN

Servile Center

Ci i-sti ------------ ---------------_-_ 34 .303 25,679 3,686 514 C2 1 597 11 3 1 1 1 7.v

I nd,-

D t it

47 ,, 3, ,, , , ,

DC(i 3

,

14

1

1 :~ s 6 ,~ . 7

e ro ,

I di li

IiS : 5

92

'3 :7S 4

484 9:-0

2

15

:

3 862 1 .854 1 7 1 s ---------_---------

-

n anapo

Levi-Il -

37 .28G 28,638 4 .203 633 64 2,401 1 .313

7 ,

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

1111arsliql,

Mid we at R R .

si~

21 .59

11,3653

17 .245

8 .841

2,00

1 .330

I

35

1118

46

35

647

311

1 .225

716

1 2

4

Ortin,

Arline

Chicago,

..

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

. . . ... .. . . . - --------- ----- ------ 3 .824 2.480 296 149 560 315 2 De M - 11 . 141 1 2 14 1 149

1 ."'

371 111 1 417 1 .7G2

s ., .cs . .. ... . . . . . . . . . . . . _

"

'. 1~8 : ~ '

14

1 :'9 ,

ii

7C7

0

13

:.

2 59

:

3

I

M, an !' - 282"15 1(]3 :925~'

34

~1,41G 525

1 358

1

4~

1 0"

!,

49

Borah a . ---------------- _ ----------- __ ---- -

St L . .- ------------------------------------ -

,1 . f, 52G 1D E724 1 '.94G 13

St Pout

34 .627 24 .76 5

2

3 .930 112 111 1 04 1 1 .411 998

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

So, Springfield ---------------------------------- -

trivial R .91.

28 .558

18,772

2 .853

13,948

2,222

1.287

~3 i

538

1 ,

65

1 :47 ,

1 .847

464

1,D46

797

41

Service

Con

to ,

A 'd c-q

Austin

.- ------------_ ------------ - G .159 4 .592 525 101 41 444 445 1 1 . . . -------- ---------------- -

C "

39,742 28 .729 3.276 90 360 4,D67

' ." 84

'Youne 7

.- ~ ------------ ------------

Dall

4,014 3 .147 754

6 1 32 2"

as. 14 1 7 . ~ --------------- --- --1-1 --- : _

[Bov e,

40: 311 21 :51 3 3.1BZ .9 31 . 1 .177

2, "1

------------- ------ 531

-

Little R.ck. . . . . . . . . . . . . . . . ------

I3 ~.

12,311

~ rs ~

9 .264 1 .

2

21.71 ' 7 1.

1 .11 Wj3 1Sit, .,

New 1N Orleans- . . . ~ _ ------------ ------------ -

Oki h C t

25~581 21

'1 1

2 33' 111 17 1 1 .217 1 2 . no . i y. -------------------- . . ... ... ..

Wichita ' ----------- _ --------- -------------

Western Region :

Bd'GS6

19 .324

I

:7~

9

13,754

1

:37 0

1,397

4

~

7

342 69

1 :.,

3

2 .072

in g

1 .66G Z4

Ser-i, ile Centel

Arph . .. an ---------------------- 3 . 3 75 2 .894 242 is 2 1 21 94

8 so -------------- -----------

, ,

8 .340 437 139 45

5 ,,

1 it

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

Helan i

H 2 2

13 27 65

1 3 '1 1

s 1 8

1

5 4 4 72

13

. 1 25!) 5

Pheed, --------

01 :690 82,99

4

6 .990 3 .086 591 4, 382 3, 717 91

Perna.

.

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

1

4 87 8

16,568

11

803

13,418

1,38 8

1,0110

316

385

56

81

3 53

893

9 3

704

24

2 Be no__

Ae_C 1j: ::: : :

7 .fIl 1 3 ' 7

4

1 1

26 144 331

Set! L 1

S F i

to 1 34

R

:57S . . GI

111

619 765

. . . . . . . .

.

S ao lon l sn, ---------------- -------------- -

tt

70 .732 55 413 4 2 .11 336 4,731 2.841 78 1co

,---------------------------- __ ------- 27 .010

: I s,

20

2 :

187 455 65 2,136 1,594 40 4

121
Table 11—Additional tax and penalties recommended after audit examination by class of tax, and by Internal Revenue

regions, districts, and other areas

(in tho... d, of dollar,)

Reg service center

im".ad. district otal ndividua lad

fiduclary

rpre.

tion tate ft d.

.

. .. api! Mic h

Total . . . . .. . . . . .. .. . . . . . . . -------------- 3,413.133 1 001 563

'

921 97 2

'

9DAU 149 0% ,300 321 14cirth-Athimli . . ... . ----_-------------_--- --- 705,559 221 :183 62 :SU 6,296 ,S49 :316 .2DD 7 N-Allmr1i. .. . . . . . . . . . . . . . . . . . . . .. . .. . . 487 526 137

`2

00 240 9,520 .350 ,297 426 3

Seat

Can he. t. . . . . . . . . . . . . . . . . . . . . . ... .. . ..

"-------------------------------------------- .

75 :96 7

4011,142

39 :5 3

98 .022

s Z94

221 .256

,646

56,76111

172

3,932

906

15,655

7 6

4,5S7

4

2 111111d.a.1 .. . ... ... ........... . .. ---------------- 564

. . 118 '66 59 .770 0,672 ,319 ,667 .044 01111Southwest West . . .. ......... . ... ..... ..... - - _ ----- 3 .548 107 :63D S8 .517 7,SZ3 .639 0 .672 &9S 269

. re . ...

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

[at... . If... I ---------

North Atlantic rrillon :

10 63 8

39 :132 71 914

7 :496

7 62 1

22 :595

359

8 :059

133

'149

,522

59

16

794

3

----------

S-k . came,

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

A""'

14 .230 ,153 .728 .494 38 5 0 2j

August ... . .. . .. .. . . .. . _ ------------- 6 75

3

,974 .979 1 9 9 2 --------- -

B 'tom . .. . . . . . . . ------------ _

:

94 824 9 .780 4 .590 3,851 69 950 877 I

Smakly. ------- ___ ---------------------- -

Bu'linglan uftel---------------- -- ------------ ------ --- . . . . . . . . . . . . . . . . . . . __ ----------

4713 :144

673

3,273

JS I :~22S2

1,911

.12

19 .037

953

':173

291

374

1 .4 0

0 7

4

61

225

2

6

2,117

29

-------- -

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

flarthind. - . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94 .574 12,469 3 .639 6.731 79 85 2

- -------- -

--------- - -

Manhattan. . . ., . . . . . . . . . . . . . __ . . . . . . . . . 307,293 72 .6% 93 .620 7 .296 ,313 .512 28

'

-

28

Portsmouth P . .. . . . . . . . . . . . ---------- -

'revide - ------ ------------------ -

Mid.Ati .ati, Region :

.776

16 .521)

.32 4

4,140

302

11,077

0

1 .106

2

59

1

7

7

M

1 ------- -

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

Service Center

Baltimore ------- ---------- ---------- 70 .327 30,376 2 .301 , MD5 36 ,295 278 6

"mark P . . . . . . . . . . . . . .

hiladelphia . . . . . . . . . . . . .

Is

.532

131 . W

4 .53 3

36 .926

.737

94 .561

62 1

6,405

3

255

8

2,159

0

835

-------

P i j

ithhu'lit,.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ 67 .247 3 .748 9 .933 .489 ,127 456 2 2 R

khromull . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _

So . .. . . . . .. . . . . . . . . . . . . . . . . . . .. . . . .

uthmast as on :

1

4 8

7 :1111, 6 4

138 :413

.621

3 087

53 2

668

6

283

6

43

59

122 3

6 9

S center

Atlanta_ ..... .. . .. . . . . . . . .. . . . . . .. __ --- 49 .281 11 11 1 7, 1 ,103 52 0 1 8 1

ir lagh.. . . . . . ----------- _ --- 29.106

J :30,

4.759 ,779 9 4 4

Wmabi- . . .. ... ... .. . . . . .. . ...

Guminsion m------------------ ---------------- 60 QO ": "sJ 15 33123

01474

31. 3

182

4 .433

8

886

132

801

0

528 -- -

1111, ------------------------------- 23 .960 15 .219 ,440 .227 32 16 6

-- -

------- - 1

' 1 IS '

17 204 .392 1 1 71 905

1

2

"

8 Nastntill.. . . .. . .

Central Region :

65 : 7

1~ :

24 .063

7 : 1

88 5 7

:

31 5

Servic Center

Cincinnati .. . . . .. . . . ...... ..... . .. .. .. ... . 51 041 12 413 1 .121 1 11 1 3 6 6Cie.

.:..d . . . . . . . . . . . . . . .. . . . . . . .. . . . . .

Mr

.

" '

:

03 549

8 663

23 0

28

3 3'

0

58,

4

6 5 "

1 :

8 46

-

1 ,

I .

4 s

1 .927

.1

1 .0 5 101 2

7

29

Indian

a

:

2 1 1 4 :252

'

4 1 :3 2 .496 1 .211 Louis, 3 5

.2022

1 .624

5 .075

4 .263

5,590

1791 17

~

173

~25

96

8

211

: : : :: ::: :

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

-S rvic. Cente r

Abordeen-

-- -----

117

1 141

9

'

2 2

Chi, 1 7 1 ._

:

217 171

1

49: 11 & 561

1

.284

,

I F ) 884 979 729 . h- ------------- _ ------ . . . . . .

mlfi)~ ---------------------- ----------- 11 ----

33 11 .3471 :17'11 11 1

694

,08

'89

6

17

7

Mil 63 T2

D =k - ----------------------------- - 1 11 1 1 988 .818 173 14 2 760 9 1 : : : :

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

3D :0.9 : ..

,661 418

352

5 1 St. 101 .0' 21 12 17 11 117 L2 1

19

,133 03

St . PaulSo. Springfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

th.suit Reg,.

4 :852

17 991

1, :

. 592

6,470

.7 :

02 8

7,177

: 418

3,173

,9 1

161

3

545

2

361 8

Service Center

Alto . . . . . .. . . . . . ____ 10 .516 5,251 ,355 63

1

1 6 ----- -

A

Wo----- ------ ------------- 11 111 1 131 1 111 3,712 .587 1 .3 0 298

- -

Cray 15 3

no,.. __------------ . . . . . . . .

Get

1

2 :449

312

1

:16 4

31 11 233 " 1 91 2

"

3

11 41 1

'

7

.379

------

iii

Deal ,

Little Rack. . ..... . . . . .. . . . . . . . .. . . . . . . . .. . . ..

:

28 52

16.4046

:

7 .-SZ 5 4

13 : 7

5,944

3 : 2

1

L755

7

"1

:

4 0

2"

4

435

)

2

New Orleans . . ... .. . .. . .. . ... .. . . . . . . . .. . .. . 32.905 13 .438 1,048 .525 XI 72 9 ------ -

Oklahoma Oly -------------------------------- Wic 53 .983 10 .920 6 .290 ,935 20 ,025 5 M

ggmdu'.~hlt---------------- _ ------------------- -

Raglan :

6,378 .190 UG ,314 1 8 135 --------- - Service C

.

Anchorage" 2 .812 1 .591 77 S 0 4 4 -

5 3 7

N

3 171

1" "

8 8 5

--------

. ...

---------------------- 248 3 :399 :1M . 256

1

6

1 9

4

.

----------

,as Angeles------------------------- :-::::::

:11.7 1,

23 .

,166

87,097

152

96 .525 3

3 .0536' 999 .1M 7"0'6 --------

Phormi . . . .. . .. . . ----------------- 22 .76

1

,653 .152 1 1

'

" 111 3 1 P.Mleml . . . . .. . ........ . ... .. . .. . .. ... .... ... 22 .768 7 .575 1 .537 40

7

2

4

of

1 7

R : D . . . . . . . . . . . . . .. . . .. ..... . ..... . .. ... . .. .

S It take Pity . ~ .. . ... .. . .. . .. . .. ... . .. _ -

16 .29 7

" ' '

.565

4,117 489

6,67Z

836

176

0

29

3

1 37

9

4

'3

. . . .. .

Sao F

... ". . . . . .... . . . ...... .. ... . .. ..

15 . : 15 3 7 .663 5 .326 0,438 ,948

:

462 381 A smittl . . .. . . . 1-1 .... ......... . 31 .491 10,915 6,088 .594 75 8D 101 9

- Less than MD.

122

Table 12-Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases )

A. Progress of work F.Y. 1972

Status

Pending July 1 . ------------_-_-----_-- -------- ------ --------- . . . . . . . . . . . . . . . .. .. . . . . . . . . . . .

Received . . . . . . . . . . . . .. .. ..... -------------------------------------- . . . . . . . . . . . . . . . . . . .. .. . . . . . . . .

Disposed of, total --- ---------------------------------------------------- ------- -------------------

By agreement ------- ------------------- ---------- -- ------------------x

.g,red : (0. . .... surem anns, -playment, and offer in commmmse imechmix) . . . . . . . . . . .

y taxpayer default on statutory notice -------------------------------------------------------------

By pubtio, to the Tax Cowl-transferied to docketed status-- . . . .. . .. . . . . . . . . . __. . . . . .

Peadurgium, 3D. . . . .. . . ------------------------------------------------------ -------------

B . Results obtained in disposition s

Method

Disposed of, tactal ----------------------------- ---_---_----_--------- -------

By ag...me't--------------------_-- _'__ ----------------------------------------------------

Unameed : (Overessessiments, clamns, e,ci,,, employment, and offer in comi elections) . . . . . . . . . .

By taxpayer default an statutory notice --------------- . . . . . . . . . . . . . . . . . . . . . . . . y . . . . . . . ... . ---------

petition to the Tax Court- transfer red to docketed status . . . . . . . ------_-------

Number of

case,

(1)

22 .328

25 .33 3

24,250

18 .877

1,83 5

901

2 .587

23,41 1

Number a t

(1)

24 .250

18 .877

1 .885

901

2,587

Amount, red in . . . .mt-imar,

'marta(thou.ml dallms)

Deficiency

and penalt y

(2)

2 .616,235

1,529 .700

1 .317.996

1 .1124,903

24.664

20.957

247 .47 2

2,827 .939

Ov x" ..

..at

(3)

135 .518

83 . a"

58.994

55,232

L .07 0

61

2 .63 1

160,4Z3

Appellate determination (Ummand

dollars)

Deficleamr,

ad meal y

(2)

638.231

ov.-se'.

atent

(31

357,943

22 .964

20 .321

237.003

65.69D

64 .329

1 .360

1

Table 13-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax Court

(docketed cases)

A. progress of work F.Y. 1972

Status

Pending bly 1

Recemmi )

P111imblefled a 11sumnli, toRistrk Dugmtms' statutory notices h . . .....

ppalit.t. .,rs.an s ItaMmy notice ,

Disp . . d of, total~ ------ -------------------- ------- -------- --------------_------ ---------

By st,pulated agreement ------- -----------------------_-- ------------------------------------

By dismissal by the U, Court .1 taxpayer default --_-----_----- --------------------

Tried bifmc the lax Court on the merits ------------------------------------------------------------

Pending June 30 -------------------------- ---------------------------------------- _ -----------------

Number at

cases

(1)

'81 :445'

6 .522

2,423

8 .648

6 .598

954

1 .095

11 .460

Am :t(,t.t .d t.

notea' 1 " d : thousand Itto t1'ry . a

Defive"y In tax

and penalty

(2)

0,., . .-.

an a t

(3 )

1,467 403

604 :625 9

362,125

242 04

468.62 6

395.18

9,507 63 .93 2

1 .603 .406

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

. .. . . .

Drift,-, from table 11, transferred to docketed status is caused by exchudmg district ch-lars' statutory r.fices mrsid.. . all by Appellate .. 9D.d .y status.

123
Table 13 .-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax Court (docketed cases)-Continued

B . Results obtained in dispositions

Method

Disposed

By alme ------------------------- ------------------- 13, dismissal the lar Clull 11 talineye, default ------- -------------------------

T, ad Were

he _ --------------------------- ---------

Tax Court an the inaital -----------------------------------------------------------

Number of

rienur

8 .648

6 .59 8

954

1,096

Appellate determination Phousand dollars)

Deficiency ,n, to,

and pan. ty

Overa-es.

empt

187 .825

114 .581

9,312

63,932

----------

------

------

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

Represents amounts petitioned ,

Table 14-Office of Chief Counsel-Processing of income, estate, and gift tax cases in the Tax Court

statu s

P in eamparmd~ ch", July L :

1`1~~md

Disposed of. ~ . . . . . . . . . . . . . . . . . . . . . . . . ----------- ---------------- Pending Joe, 30. . . . . . . . . . . . . . . . . . . . -----------------_----- ---- ---------- _

Revised .

Member of rose ,

(1)

8.507

12 .625

Amount in dispute (thousand dollars )

Tax

(2)

penalty

(3)

Overpayment

(4)

Defiri . . . y

LAH W

"R

372 : 667

. 105

1 .477,259

f'2356

46 .3,11

140 :51 .

143,GZ3

15 .330

:4"

146 411

Table 15-Office of Chief Counsel-Receipt and disposal of Tax Court cases in courts of appeals and in Supreme

Court

In courts of appeal, In Supreme Court

AMDU I, disput e RlAmount approved ispute

Amount i

mount approved

Month .,

ad g

((house doi sea) thousand dollausl umber

dollars ,

Iffinnison i house dollars t )

states of cases of cosa , D,firbm Olc,. Dgh,inn- an,. omme- ver- ,ficle, er .

cy end eymene, cy and ayment y and ayment y and ymen t,

.n.1ty panelLY penalty enalty

(1) (2) (3) 4) 5) 6) 7) ) ) 0)

Pending July 1, tat.1_ ------------- --------- 503 39.632 54 ------ --------- ---- ---- -------- ------ -------- ------- - Appealed by Commissioner p --------- 6? 13,83 0 A p : pp ,Ild ~ I'yy Winger- ------ 73 .12 0

A

ad both_ . . ------------- .02 . . . . . . . . . . . . . .. . . . . .

Appealed. total . . . . . ------------- 14 .651 162 - ---- . . . . ... .. .

By Clause"!. . .. . . . . . . 49 3 .192 7 51S'

fly to, syn -------_---------_-------- -

both .-___ ----------- --------

0?

17

,793

1 .66G

4

141 ---

_ . . . . . ..

-- -

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

Disposed ie. total . ..... ... . .. . .. . .. . . . . . 364 30~69G 44 6,2t5 6 2 9 ----- _ - ------- --- -

farm ahl: lo Conere-eme, o . . . . ... .. . .. . ... 206 4.08 4 08

To.ghl thapayea ------- t 8 ,204 77

_ :

--- . .

--- Jii- ------i - ----

9

llmd ----- ------- -------

,,ad -------------------------------- 24 .217 0 30 9

--------

. . Settled

4"1 '.4'1 13

-

42.4

-------- -

1 --------

- -

--------

-

: : ..

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

. . .

ending on, 30. teal_ . ...

:: : :1~1

3 587 72 :

-

Ape 11 : :111

r-- --- 55

71~

1

7

-- -

" a d by Pay

A

Appealed by both

317

40

2

3 238

7

AS

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

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

ReleRel .

Table 16.-Receipt and disposal of refund suits filed by

taxpayers in Federal courts

States

(1)

court "er, ex of Dis!~el ,

't is

(2) (3 ,

Total Refund S its (other

and a'

.

tie,")

Penden Joy I -

Cages .l. . --------- n,,b,r,- R ...Amount fi. dispute --- thousand ikillirrs- ived during a,, . C a ----------- number .-

Amount in dispute ---tb,,sand dollars--

Disposed during year :

A d dmlla~: ._ Refunded during Yen, n :

Amount. . ------. .,thousand drilla

Percent at amount di,p ..d .1 . . . . . . . ~ : Periling C .. s~ June 30 : . . . . . . . . . . . . . . . .

' . - .. .be' . - Amount in demote---thousand dollars--

3,467

523,71 5

1,042

140,211

1 442

143:~:7137

36 .06

3 .067

529,509

454

210 .353

1"

63 .01 0

150

84 .783 760

36~2 5

468

224,5Z5

3J "2

31

R78

77 .191

8'5 :1'2""

33 713

39 .37

_599

304 .924

r The number of c,-,,, it"""' c!hdos7,`o`urr`,F"' with the number of reses In which docise.,

,,,

rendered by during the year . due to settle . W by stmul

.lia"' it

lsml~11_11,',~"nd been ,,,,ad for evil 'i

. elcomplialown .f W, etc, In the Court of

C

. .be, .1 debionne, a, 70 el which 16 1, for the Grivemire"'51 'Aar nst the Gor-reent, and 3 partly,for.1, n

" ' ' ' I yu`,%"2~118' the Government. In the d,a lact court, 390 dacisirp,, w end ad . .1 .

will for the G. . . fnm,.nl : 1,11 gins1.1.1s, (mvemerem, seel Is pp~,U~, to, and p,ell

g

remen

'o ."~r the Cover or by the comi of ap I and Som,my u a,alabln 17.

Table 17-Office of Chief Counsel-Decisions of courts

of appeals and Supreme Court in civil tax cases

Partl y

far the Against to, an d

Court

ToW 'in -

Golent v

he Gov .

element

rth,

inagains , t

ineme"in,

I

fl) (2) (3) 4)

Total . . . . ----------- _463 - 3 1 31 6

B) courts at appeals, total. 4166 299 : 28 11

Originally trial in Ts' - Good ti, O 7

I

4 District c'i

'5' 9f ,

R

I

2

By SiRp'aneCmmt'tct,sl____ 5

2

O"goolly tried ip -

tax

t

"

""

3 I. us . '----

-------- -

121 rill'Irt in or ., lI.AppallI 7,7,olie im x in 3 3 do,k't mr re bars .1 lik,

he ns wore partially to, the G...

rh~

nic."t'" a against the Gooeplnni and 36 iminume, - nin all be Supreme Court nimemed I opiplo, in 2 docket numbers

Table 18-Office of Chief Counsel-Receipt and disposal

of collection, injunction, summons, disclosure cases

and erroneous refund suit s

pending July 1 11971 )

ociremd . .. .. . .. . . ~ :: : : ~ :

Deipa,i,d of . . . . . . . . . . . . . . . . . . . . . . . . . .

P,mfirgJ .h,30(l972,_. _ . . . . . . . . . . . . . . .. ... . .

Number I cases

1,976

1 11 ~ :7

?j43

'on11re ;tI.doxellged e.giD1a,V,,1ue

.vgx

.1huch

,it in a l~l 1, i 1l~,hln161*t11 t.1'pan hi~chl.'il .11 .

no,

rdebtor . . .... . ran ed' .'es a included m table 20.

Table 19-Office of Chief Counsel-Receipt and disposal

of insolvency and debtor proceedings

Statu s

I'ledina July ] (1971),__

: : :,- Desim ,

lilndimi~ June 30 0972j __

let

To

mm'Rantc .,~

firm procmed its,

fianklim"Y

and lecawership

P-ccl

egs ,

(1

2 .974J

1, 'is :'11

3,097

12l

~8'101

Nail

13)

1 611 21~

1 .178

669

.us

fincelle.1y

proceed. mg,t

4)

410 G2J

5G9

524

r Proceedings Instituted die the toll-eq seclem in, chapte., of r1m Bank- Al~ it X ~,.rpmaln mug,ni- : Sec. 77 ouroa norganizationiO add

X (arrangements as up un,,cu,,( in able ness = . 11 (foal ildogehily ar-gammets),and Xill :wag, earn .?,$' plans) . which involvelor ellre, an

tight, and intInIsIs of th I Unitied States

illankmptcy Imeldefion proc-lim,si b h , oml [,-dmal or Stale receivership pro. ce Rings w " 1 .'~ lenex at mc- Unfair St .tes .

fe; Pro ledin g, ,lating to corporate d-Imines,gill . .. I banks, is .,nemseft in oarmhtof creditor, mr,denemil,anion of no e-fidieedimis,,luch involve

to, cl eum, of the United States.

Note .-Includes eases handled at pati,mal and regional levels .

124

125
Table 20-01fice of Chief Counsel~-Reaxceipt and disposal

of miscellaneous court cases, lien cases not In couM

noncourt general litigation cases, and appeal cases

fiflist.l. Lien Noncomill

state,

Total I=x

.1. 1

hc,&,min

..,1 1

genera l

U Mellon

' . . . I

Appea l

. ...

.

.

(1) (2) (3) (4) (5 )

Pending July I

R.c,i,.d

Unmixed of ------------ . . . .. . -

.

I '

924

""

8

113

11 1

'90

111

12

'

'.3 1

1

1 .1 12

41 -' .21s 1

1 113

1 R6

1

21

Pending Joe, 30. . . .. 189

' ~ 1

:,39 I 2J

,

suits to i Include, to Is for fo-f-le 11 himlimirce, 11 1111, -1111 -d-, . and

Q .1e, flil . to

Which the United State, I, ad. a Par

ty.

Pr!marily applications for dischelle of property from is, hens.

t isbet men

"'"

pearandu"' I cam . .. I

e it it P' ily., "me on general ~1o'cocau'" Malt,!d" from

which ...

hot ,I.t.d a Proc., minor -cave,

- include, isse, in Frel and Star, appellate co~ltl elating to insolvency ,,ad

debtor proc

candurris ,

Ilem I,. m .mt, and

. 11

.1mr, ..it m1mic on

C.I..

Note.-Includes cases handled at national and regional levels .

Table ZI.-4)Mce of Chief Counsel-Caseload report

Acti,ity

Pending

July I

(1)

Receipt,

(2)

Disposal ,

(3)

Pand

J.nx!;1

(4)

Total------------------- == 38 .673 29 .2 6

Administration ----------- 124 167 12 8

Alcohol, Tobacco and Firearms- 1 .272 7,559 7 .617 1,21 4

Net.. . I Offic,. . .. . . . . . . . . .

Fuld ---------------------

421

851

2,06 5

5 .494

2 159

5,459

328

886

General Litigation .. . . . . . . . . . . . . 6.824 13 .955 23.300 7 .429

National Office . .. . . . . . _ _

Fluid . . . . . . . . . . . . . . _ ----

474

6.361

525

13 .330

379

12 .883

62 1

6 .808

Enforcement. -- --------- 2,467 1,680 1 .385 2 .762

National office . . . . . . . . . . . .

Field . . . . . . . . . . . . . ------

99

2 .368

136

1 .544

82

1 .303

153

2 .6011

Interpretative Division . ..- . --- _ 360 ass 778 470

LnglOstio. and Regulation------ 445 205 210 40

Ridded Litigation Division . 3,467 1 .042 1 .442 3,06 7

Stabilization --------- ---------- 3 336 7il

National

F.,ld .- ---------------- - Offic ------------- - --------- ----------

1I J.11.71 1E :317 5"

178

Try Court Litigation .. . . .. . ..

. .. -12,691 9,219 3 .873 13 .037

National Offic. . . . . ... ... . .

Trial Rinsch National Offu.-

Field. . . . . . . .. . . . . .. . .. . ..

I

50 8

207

11 .976

I

270

62

8 .897 I

366

1 6

8 .491

I

412

12,372532

IM= IsNotice, of incl ad .

Table 22-Establishments qualified to engage In the

production, distribution, storage, and use of alcohol and

alcohol liquors

chrics .1 establishmen t

Distilled spirit, plants :

Pl. t, (.d munem) -----------------------------

F.N.111ticr :

Production ---------------------------------

W . ..housing--------- --_-----------------

Reuling in )xn.rg. bond. ~ ---------- ----------

Te .paid bottling '" `L--------------------------- -- ------ _ -----------_------

R'chlys . . . . . . . . . . . . . . . .

Denatured

and bexl~"f,,,

Deal ,a . in specialty denatured alcohol=ml

Us

d ---------------- L elicit us, . of quaistly

-

desist

-. - I , it.

-if"Ollorand

it...

tmed

I_ --------- -------------

Rmiroce ., .h :uvra I . . bottlinsr. .k.,ollprecallyderratmad

rtichm I I. -------------------

Users of tax-free alcohol. ------------------------

Limited users of tax-free ----------------

8- 1.-..... ...... __ ----------------_-----

Wines ;

Bonded wine collars-. .-. ------------ - -

I

. V,miga'.P.id win . battling h.. ...... .....

. limerpur!ructirries using vaporizing process_.,

S.e, .,. itsellers.

=11

Wholosidis.1 do, deal,.ra I Ron

.in com, -----

1R : ::!l dl,,I:,, !" liquor s

I ea far in bear-------------------------

Other :

filanufacturersol nory-boverage products (drawbac

Froit -flaid, concent late plants. . .. . -------- ----

Bottle manufacturers- _ ------------- ----------

As of June 30

197 1

342

152

276

56

51

145

136

42

3M S

386

969

1

:662

1 5914 98

"I

57

3

3 ' : 31"S

51871

2"A' 121 6

765

64

125

I Includes experimental distilled spirits pints .

'des :nz in rowea.

'I"cl.

fi :~i :.ntej I

I In, it., im is bonded wine cellars.

1972

131 9

148

275

54

52

143

132

40

2 .594

718

5 9M

1 ..318

114'W7

1464

562

2 .3D2

4 .090

5 .630

11 .3 .7"

721

123,2

130

Table 23.-Establishments qualified to engage in the

production or exportation of tobacco products and

cigarette papers and tubes

Glen of establishment

Manufactur- of tobacco products . ---------_--------

Ma,ufu urara of cigarette papers and tubes . .. . . . . . . . . .

Tobacco tul expert wareirair.. . . .. . . . . . . . . --------------

A, of June 30-

1971

195

5

191

1972

197

7

203

Table 24-Persinits relating to distilled spirits under chapter 51, Internal Revenue Code 195511

Sectio 5,7 n

I If 1

Code

Section 5271, i .R. Cod e

Users of -

status Total MIMI- .0ho- I.

spirit

plant,s denatured Specially denatured Tax-fies, alcoho 'P.' its l

alcohol alcohol

denature Speciall rush yd

REG LTD REG LT D

(1) (21 (3) (4) (5) (8) (6) (7)

In affect July 1. 197J .-_ --------- . . . . . . . . . . . . . . . ID,895 194 42 2 .994 396 is 5.662 1,599

153ured_ -------_-------------------- . . . . . . . . . . 1 .005 Is

9

240 249 3 118 368

Terminated, . . . . . .. . . ----------- 1 .050 11 542 31 3 394 6 5

Revoked --------------------- . . . . . . . . . . . . . .. .. ... .. ... . . . . . . .

Otherwise I.. ....led ----------- ------ I .G49 541 65

In effect June 30,1972. ------_------- _ ----------- 10,850 40 2 .692 396 1.902

20 1~5'

I I

Amended . . . . . ___ --------- ------------- ----- 904

I

---------- - 257 27 I 42

T able 25 .-Permits for operations relating to alcoholic beverages under the Federal Alcoholic Administration Ac t

Grand

Distilled spirits plants'

Wine Wine

Status total

Total 2 Distillers Warehousing R.I.fiev,

produce, ,

and fired

bleeds,, lesporl", Whol-la

DeD,

nd 0 in g

(1) (2) (3) (4) (5) (6) (7) (81 (9 )

:n fi,ct July 1 . 1971 _---------------- 12 .545 336 160

111

155 37

?

36 2 .21

..ad . .. . . . . . . . . . . . . . . . . ------ _ 1 .713 19 9 1. T '"

9

5

5

2 1 : 16 5

I erminated total --------------------- 1,49 34 21 17 14 38 7 754 1,16 5

Revekind

-------- - -------- --------- ,

-

otherwise is, 1 .4953 -34 3

V

2' V1 ii

i

3V

E

Y 1 .16 2

1 effect Joe 11 7

3"

12 711 321 171

9;

393

19

2 .302

1

9 .720

A.muJ.__7 -

1 :

SIM 231

-

100 319

1

ISO

I Excludessermits for customs manufacturing bonded warehouses since such ext;bllxhmLnI1 8,rh not required to quality as distilled spirits plants.I

Col. .. I do. of equesmit the in of (3). (4)

ad (5) si .. . ...

permit re strivir re an mr, actwity .

Table 26-Permits relating to tobacco under chapter Table 27 .-Label activity under Federal Alcohol Admin52, Internal Revenue Code 1954 istration Act

M .auf.- Export

Total turer, of warehouse

status tobacco

products

piepubiter.

(1) (2) (3)

effect July 1, 1971 ---- --- 384

111

19 1

,sued

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

66 19 37

Iminmated, total___ ---------- 60 35 25

Revoked I I

otherwise 59

~

3 4

In effect June 30, 1972 3- 187

1

1 20 3

Amended. . . . ... ... .. 48 21 11

Application, fail ow n

Type of label Cerbhkc issued

D "

Total

Appir .. 1. 1 Eavinp Usim. -

Approved

Grand total . ... .. ... . . . . . . ... . . 59,445 58,312 150 983

Disfillool spirits, total .... ... . _ 19 .616 19,233 9 374

Domexti-__ . . .. ... - 16.192 15 .939 9 2U

imported- ---- 3 .424 3 .294 . . . . . . . .

. .

130

Wines, total. . . .. . . _ ---------- 38,M 37,371 141 577

Dournextic . . ---_----_---- 14 .452 14,082 141 22i

Imparted .-. .. . . .... .... . 23 .637 23 .289 . . . . . . . . - 348

Mail beverage,, total .. . . .. ..... 1 .740 1 .703 . . . . . . . . . 32

Domestic. . . ... ... . .. .... . 1 .254 1 .242 . . . . . . . . 1 2

Imported --_--------- 496 466 . . . . . . . . . . 20

13!

9 ---------- ----------

1

3 9 ..... ..

form 1649A corrections. total----

5 ,

759 . . . .. .... . . . . . . .... ......

126 127
T ble 28-Internal revenue tax collected on Puerto

Rt an manufactured products transported to the United

slates, IC by object of taxation

(1, thousand, of dollar,]

. Obtacts of taxation 1971 1972

lotal- . . . . . . . . . . . . . . . . . . . ------- ---------

Disfillod piflfts-_ . . . . . . . . . . . . . ------------------

Distilled spirit, ortifnalwo t,, .- . . . . . . . . . -----------

Warn --------------------------------.. ..... .. . ... H..- . . ... . ------ -- ------- - --- - -------- ---

Cigars

, ]

.'a,:

clit

.

Class

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

B- -",* ----- * ----------------

Class ' * ------------------------ ** ---- --

Class ------------------------------- Class E

Cig'Cla"G . . . . . . . . . . . . - . . . . . . . ------

am .11- -----------------------

Cilia .11 ------------ ----------------------

90 .707

,90.285

639

104,762

9-99

10

Not'

-Amounts of internal t...ru, In- collected on Puerto Rican tob, so

and cron

of

~"lm it loss cu 11!,df1

;.h .1"1p1lIddaxc the Urit.d States, 0, consumed 11 the

n

its cks

. '"" sas), are f .x, .ad into the T..

. I'll I

Pon' 'a

Rica, undo, (he mm-mn, Of se: 5 2(a)(3) and 5314(u) of the Internal

It-

"' n

Code of 19M.

he gross _~

.t , are mllfef ad in .~... If cqllcclmh~

-

.11, table,

I through 4), beginning with 1955.

Less than

$500

a

. it

.

Table 29-Costs incurred by the Internal Revenue Service

L, thousands Of dollars]

Internal revenue office, rl a, region Total Personnel T,anttl Equipment Other

compensation

'1) (2) (3) (4) (5

)

A. National Office and regional totals (including dishict directors' office, and serltico

centers)

Total Internal Rat,anu. Service'............. ---------------------- 1,127,390 948,627 34 .287 27 .180 117,297

National047 117

"'

11 15

2

11 117

orth -Atlantic

'

~

:

17

286

.5 '

7 11 833 946

2:9

149: 4

fall-Atlartic

4'

So ., .. . . . . . . . . . . . . . . --------- 128,711

l ll 171 3,233 7591 .2~1

he st ------------------------

C

t

On -----

lg .~ff i,

117 11'

oE:

668

j11 511

4,793

3

'

2 .457

111

9 .44

Mid .es'

2~:

.7

13: G

84 311S2 7 I: Gs

South out ---------- ---- 111 71

''"

3 :90 776

5 .521

WO,ttarn . .. . . . . . . . . . . ---------------

R gima .1 Counsel .. -- ~ . . . . . - . . . . .

5, , 9 : 2 l . 111

E 31 97! : 1 4

6 .01

7

243

2 .269812 .530

385

Regional Inspection-

--------- *

i', 17 12

: %5

1 .203 71 28

4

off cc of Intemation,i Urpmations.. ----6 :446

5,

666

465 ----- . . . . . ,311

Na2ral Computer Clinto----------- ------ 4,957 3 ~382 51 13 . .S

T

IRS Data Centel. . . . . . . . . . ------ -- --------------- ------------- 15 .742 13.210 85 792.368

8. Regional commissioner's ofikes (excluding district directors' offices and se-re

,on a

K .,th~At Ilm'V

Mid-Aflantic -----------------------------------------------------------------

--

17,890 16.288

62

42

41S',1

520

1,93

212

southeast ---

C, flat . . . . --------------- --------------------------- ------

21 :57

7

!L", : 50

6

1"

91

469

364

125

S,

f,7

9DO

M

w

e

id st- . ... . . ---------------------------- ---------

16

3,

1

6 29 151 1 us

sci .tl-ol----------------------- - --------------- ---------

Western ---------------------------------------- ------------------------

12167

22 .518

10. 76

20 286

616

"1

121

23

954

1 .104

C. Regi-Ic .sis undistributed

N 0 rth-Afl,infic ---------------------7

i

79

5581 .005 1420

Mit -Atlantic------------ ---------

Southeast --------------- : 7

92 ' '907

90

7

824 0

--------

-

-----------

61

4

Canfit ' . .. . ... . . .. . .. . . 2 :109 94 1 1 :1 5 2 ~ Midwest . . . . --------- _ 2 .D29 966 913 26 4 4

South- - ------ 1,141 117 115 442

7

West . .. ---------- . . . . . . ------- ---------- ------------ . . . . . .. 2 .296 796

"417 L'-- - 7

83

Table 29-Costs incurred by the Internal Revenue Service-Continued

In thousands of dollarsi

Internal Revenue office, district, at region Total

(1)

Per net

compensation

(2)

T-a l

(3)

Equipment

(4)

Other

(5)

DO District directors' offices and service centeis : N rut A [antic .

Albany. . . . . -------- -------------------------------- _ --------- 4,991 4,644 135 52 15

9

Augusta ---------------------------------- . . . . . . . . . _ . . . . . . . . 2 .579

2 .374 105 13as

Rush- ------------------------------------------- ----------- ---- - 18 .835 17 .731 372 117

60

Brooklyn- --------------- - -------------- ------------------------------

Bulfal. ~ ------- ------------------------------------------

20,226

1,7,39

3

19,190

11,743

288

282

77

41

670

319

B first . ... . . . . . . .. . .... ------- -------------------- . . . . . .

1,1111 23

l 11

47 Hartford ------------------------ S S 3 5 R :

al as 51

21

Manhattan ------ 42 :2

54

2 .036

40

"1a

26, 1,305

61

f~n.xid on ----------- ------------------------------------- . . . . . . i l ,

2 .111

11

Is 132

uerto air, Branch(AT&F . ------------- -------

l ,

15 .

11 . . . . . . . . . 3

N

0 ~1,1:A;Ial~c %1~1!hrll Infirillfih

No A ',itT,

o

"1

313 . . . . . . . . . . . . .

2743

And.. . r S,r,i,e Cents, .-.-------------------------------------------- ---- 3D,52Z

. 207

2 .926 Brookhaven Survu, Units----------- ------------------ -

Mid-At artir : 6 .251

2 :83G 137

1 .

843 J,434

8.1than 0 ---- -------------------..... .. . .. . . . . . . . . . . .. . . . . . . . . . 15 .026 14 .424 .10 45 34

9

Me

it -------------------

"-577 1

4

211

11

2

Pittsburgh------------ -------------------------- ------- '. 01 :47'5

IS:5

10 .94558

S91

A)

21

100

541)

222

Richmond ------ ------------------ 1$2

"

9 NI

349 53758

VfiVrinF.t.;,, --------------- --------

Miit:A , Tlmai- --to' R C ------------------ ----

;

. .719

29

2I

9

53

------

135

1

04

hmG c RI

15

MidA on-Contra ized Trananng_ . . . . . . . . ... . _ -----------------

SoutPhil .dolphi, SinOu COM--------------------------------------------------

It sat : 9

6

27 .30

.. .....

i4:1fi,

195

04 . . . . . . . . .. . .

185

I

2 .907

Atlanta . ~ --------------- --------- 11 :139 74 4 M Do 36

9

74S4a 237

11

22

Columbia . ------.. . . . . .. . .. . . . .. . .. . . . . . . . . . 4

.3

3,980 16D 11 16

6

C

ra,

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

ckA' sboro .

10 .

3,909

9,131

3 .494 3 I B72f

136

94

39

149

M"

2

1 6 6 1

Got; 393 983

NashOll----------------------------- ------- 7 7

u .03

5

7 279 145 305

- T,ainirPCama,--- . . -----------------------------------

-

IM"'hatContr.1-d! ], .iO.ng --------------------------------------

33

126 . . . . . . . . .. . .. . . . . . . .. . . . . . . . . . . . . . . . .12,

2341

Atlanta S-ic, Conto------------------ - . . . . . . . . . . . . . ..... . .. . ... . . . .. 21,294 19.057 80 115 2,04

2

Memphis Server, Earlier --------- -----------------------------

Central

11 .2017 .140 199 812

3 .040

CtmlI anhati ----------- --------------------------------------------.. . .. . - 11,238 11 127 269 51 29

2

CIO land ------------------------------------------------------ . ... . ... .. 17 .394

6 :4 51

411 97 43

5

Detroit ---------- ----------------------------------------------- 21 .641 20 .166 545 222

7

"

:hdaul-polis-------------------------- : -

-

--

'"1 IN' '0NOV'

32545

95

11

374

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

'' . .... . --

'it ' 4 :315

3 .8942~0 13.

.01.1 gasioitA Training Cente ------------------- ------------------------- 221 197

2 1112

E"It"

Repon-Ccrift,lized Training --------------------------------- -----

Chlormati-

S

crx1f. Cont. . . . .. .. . -- ------- . . . . . . . . . . . ...... .. . . _ -------

-

Mid

. .st:

21 .21E 'TO -------H ---- .314-

106

112

.. ... . . . . . .

102

4

2,73

4

2 OG3

Chi 13G9 115 14

65 .. . ..

28 .175 .. . .. . 3II 72

1

Cee Moines ------------------------------------------------------------ ---

6 .7086 .167 232

I7 1,2

Z Fn

vaa~c

9 aA 1 :12 5 1,745

9,874

101

281

4

177

74

355

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

41

04'a

171 14

1

St . Louis-----.. . .. . -------- - ------------------

.3 :

471 12 :115

30

4 4G

s

74

St . Paul, ------------------ -------------------------------

S .If.5

9 .031 264 38 22

2

Swi.0 .1d --------------------........ . ------------- --------.........

Mul

t,

"XI"

an

,

l' od-

7 .335

21

6 .8061

298 . . . .. .... . .. . 16 . . . . . . . . . . . .215

T

20

al, ;~w:I . ,:: : :: 140 . .. . . . . . . . . . . 139

-2

Sout Kan-C,ly S-iv,Ccnt--,.. .. --------- ------------

hwlell .

24,6360 .948 135 57 3,496

AM.

.

. o,que ------ ------ ---------------- --------- --------------------

2 .746 2,477 132 21 116 Austin 11 13 '

14 5404 109

:' ' 1 : 5

,

14,72 71 :E3 .71"4

1

400

11

4

503

Dn ,O-5 .9995 .427 143B 46 29

4

Little Rack-------------------------------------- ------- ---------------

-

No . Ella - ---------------- -- ------------- . . .. . . . . . ----------

4 .153

8 .851

3 .710

8 .277

157

223

38

57

24

au'l

Oklahoma cily-- --------------------7 .1626 .610 249 52 25

0

Wichita. ----------------------------

Sout west ka,pon-C,nualizIll Training --------- --- ------

6 .341881 5,608

----

239

L87

66

-- --

4281

Austin S-ic . Cimial ---------------- ---------------- . . . . . . . .

West.r :

20 .860 ILBSY 67 ---- --

1 .789

Anchorage . -------- --------- 34

0 ' 1 ' l?

I

21 SIG

%a, ----- ------- ------------ - : 2 209

a23

sitI

He21

mill-- ------ -------------------- ----------- . .. . .. . ... . . . . . . .

Harm lulu- ---------------------

2 .213

2 '' ' 1 :79

7

2 .650

120

93

30

'2

'65

11016

Los A,gO,s- ---33 : 154 30 130

9

N 241

1,

299

Pheeni . . . . . . . ------- --------------- -----

PO 'flind ---------------------------------- - ------- ----------

4 .674

5 .854 : ~ 4

&Z

5,320

I

67

223

93

39

333

Z73

Ron-------------------------------------- ------- -----------3 .7943 .163 193 47 39

1 Sall Lake Cit, ------- , , 2 .926 21'

91 20

"1

an : : : : :

S ------ seat a- . ------------

it ------ -------------

L,36

8 50

7

2027

7 .743

7

24

309

1E.2

I'o

353

Wes n in0

l:. Relim at T,m a C. I

----------------- 538 3244 28 18

3

~~

s

we

0 z ad Training . . . ------ .. . . . . .

.,do .

Scr_a ante r

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

1

191

27,828

jli

189

168

2

83

Fresno Service Centel . . . . . . -------- - ------ - ------ - . . .. ... . . . --- -

L'

_9907 :31 223

1

49 4,467

Includes $5 .9 ill a, firanced from loinhulsoments .

Annaunts shown do not include transfer to GSA lot rent of space amounting to $2 .202,000 .

128 12

9 I
, Table 30.-Obligations Incurred by Internal Revenue Service, by appropriation and activity

Total Perform .] Other

Appropriation by activity

and lim1fils

1971 1972 1971 1972 1971 197 2

Total itlifilpfunim, appiritipirlidthm.,

end reimbursable . . . . . .. . . . . .. . .

. . . . . . . 981 .065 1 .127 .391 948.3G2 949,628 132,703 179 .763

Obbrittimi . Al appropriation fund .. . . . . . . . . . . . . . . . _ ------- . . . . . . 975 .725 1 .121 .511 844 .512 3 773 131 213 177 .7 5

Salaries a it esp.....:

Total . ... . . . . . . _ ------- . . . .

.

. . . . . . . . . . . .. . . . . . . --------------- 21 .961 31 .901 24.533 27 .419 3 .428 4 .492

E, . .Ii.. din,stio.. . . . . . . . . . . . . . . . . . . . . . ... . . . . . . .. . .. . .. . .. . . . . 11 .903 13,462 10.653 1 1 1 1 111 1 12

let I audit ad -wity---------------_---------- --- 16 .053 18 .439 13, SM

5 :

759

2: 113 2 :

680

Account,, collectims and taxpayer urvitl :

l

. 1

ot. ---------------- ----------- __ ----_--------_---- 409 .048 471 .623 339,955 377 .396 69,093 94,237

Date moloam, -------------------------------- 22 65 5

1

."his and usp.

277 .406 T80 .023 207,735 47 632 171

-1

:

17 1 522

1

84 .84

7 "1 1B

37 1

U'H

1 :1 13 4

72

S limorting--------------- -

District MJPUAI Operations. . . . .. . ... . _ -------------_-------_ - -------

8,901

====!!7O

8 .1117

51

7 1 3

1 .066

5

7 2

'549

1 . 358

1 :09,

2

~ompliamce :

Total. . . ........... . ..... -------_-----

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

538 71 .

""'

17337 480,024 533 .90 58.692 79 .019

A dit of tax returns .. --- . .. ... . . . .. . ..... 3 7 3 7

I 1

.229

___322 513 _-361

'

34 624 11 12

in, fr. it -------------- qswi - T .1 im,amuxtxm,. _ . .. . ...... .

" "

~d

5

54 3

,53

46.591 S3 : at1 7 774

1 :

c fi 139

Alcohol, Job n it nuilm, . .. . . ----------------- ----------------

-

Taxpayer cant rees, and,,ppeals . . . ..... ... . -----_-----------

[

29 JI

M

59

440

M,9,4 0 .273

48 .64 2

27 .259

56

28 . "71S' " 7L :101" T2 .'

Technical mlings; ad sel-Is . . . .. "1

Legal ------- . .. . ... ....

..

.

1

4 72

,

23 887

25 .,7.247,

13,536

21 .483

15 .066

23 561

1,185

2.404

1 .1 .

11 6

Reimbursable obligation, . total ... .. ... . .. ............ ... .

. 5

340

5 .Me

~1 .1150 1 4 .-S 1 . .490 [ .025

Not-Amournts shown do not include transfer to GSA far rest of Pace immunti.9 to SS48 .000 1. 1971 ; $2,202,010 In 1972.

Table 31 .-Quantity and cost statistics for printing

Fiscal year 1971 Fiscal Va ., 1972

Class of work

Quantity (thousands)

Cost

Qu"btv (thousands)

Cost

Thousand (thousand

Item. Packages dollars) It-, a, Pecialf. dollars)

sets at ,

(1) (2) (3) (4) (5) (6)

1. TaxPackage Packages (1970) :

I (form 1040, Instructions, Schedules A & 8-24 pages)-_ . . . . 257,10DO 51 .401) 786 --- -------- -- -------- -

Package 2 (Form 1040 Schedules A B, D, L & R, and Instructions-40

pzqz,')~ . . . . . . . . . . . . . . . . . . . . Cj~; . 157 .1500 17, IN 412 ------------ ------------ ----------- -

Package 3 (Farm 1040. Schedules A B, .

Instructions-56 on . . . . . ---- 1- ----------------------------- -

F rs h J i ti 20- 1587 -N125

UT 170

I : 465

11

P.ck .g~1065( .,.I ,S, .d. .D~~d ~,Uu, ~~1- Pli~1) ------- _ 4 2

Packax 3468 . 4626 an d

1

20 Schedule D, Far., I 12DW

J 120 (To F

1 '

.

20 and Sch.c. ~ .

last'. ion't., 11 1 For , . 0-32 Pat as ------------ _ 220 .001) 2,000 so ------------ ------ ----------- -

11 . Tax Peckarea (1971) :

Package I

(Farm 1040 Instructions, Schedule, A Is B-281

Pages) - -----------

- -------- ------------ 249.700 49 .940 966

Package 2 (Form IUAD Schedules A & B . D, E A, R, and Instruw1W;;:~ib

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

11 . . . . . . . . .

-

.. . .. . .. . .. 114,525 12,725 43 3

Pack . a

and natructions-SIS Pain --- __ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 335 1 2

'' . ..

Pxdk

: 9 1111 ~1`1 , ul, ",b,,fl*n ,-21 age,) ------ -

""

d

to"

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

1 :

36 WO

1 :

' : Izo ; . . . .. 700 70

: S a '

0

Pack To 11. bad ,Farm 3468. 4626 ad In.

structions for form 1120 and Schedule 0-32 pages)_ ----- _ . . . . . . -- ------------ ------------ 220,000 2 .000 92

Ill . Employment Tax

Package :

Pub

. 393 'F" .a 70111. 941C, W-2 . 941A, W-4 . W-4E, Schedule A for W-4 .

Pub. 213, and unemployment tax schedule).. . . . . . . . . . . . . . . _ . .. . . . . . 96,140 5~060 1 114

O Tax retain, ad imitructierisfol malor nnallmilt . timptiTe-T.ta l

i l F d P .

89 465 5

1 4161 : 09

7 2

9 :6167G5

a

93674 :629 2

102168

208

IV. ther ..

I on, . Pub -Use orms, a a"Ph ets ... . . . . . .

V . Al.

mis',glu-, Instruct i

c

- Forms and Pamphlets I . . . . . . . . . . . . . . . . . .

'

541 .ODO 263

1

,

537 .635

. .

3 :900

Field Printing----------- . . . . . . . . . . . . . . _ . . . . . . . . . . . 354 21

:

1 31 17 1 11 7 1

Ent," Tax Stamps- -1i_1_ .~__L. . . . . . . . . . . . I -------- - 1

VI All Printing as support Phase of I a camunic Stabilization Program .------

2

556 :612

-_ -------

1,

195

- --- -

2 . :~ . 2

626

41 .219

:

1 361

99

GRAND TOTAL------- . . .. . .. ... .. . . . . . . . . . . . . . . . . . . . . . --- ------- 17,5" _. . . . . . . . . 19 .952

Includes sembrig to, Phase I of the Economic Stabilization Program .

INDEX National Officers

A

A .t, :

Explosives Control Act, 30

Federal Alcohol Administration . 21, 22

Gun Control ACt-1968, 29

Organized Crime Control Act

Revenue Act of 1971, 74, 75

Tax Reform Act, 1969

AOP processing, 74 . 75, 76, 77

Advisory committees, 13

Alcohol and tobacco tax:

Advertising, 2 2

Chemical analysis and research, 23

E momement activitY, 22

Elabljshrmmts ~

rispection of, 23

Industry circulars, 22

Label circulars, 22

Operation Dry-Up, 22

Prosecution, 22

Publications, 22

R egulations, 22 . 23

Seizures and arrests, 22

Supervision on-premiseS, 21

Statistics on, 21

Appeals:

A p Ilate division, 14, 15

Chart on, P C ' 15

Processing of, 15

Statistics on, 1 5

Appendix, 8 9

A sessment additional, 20. 21

A: sistance:

Foreign tax, 44-47

On-Site, 46

Overseas, 44-46

Taxpay-s. 2-7

Audit exempt organizations . 1 3

B

Bulletin . Internal Revenue, 6

C

Ch .

Orgainiration, 82

Chief Counsel, Office of

Analysis of cases flowing through, 50-53

Cases involving criminal prosecution, 19

Dispoeizals of cases by, 1 9

Civil litigation, 51, 5 2

Colienction litigation legal servic~S (See

General Litigation Services)

Coilections :

Alcohol taxes, 74

Corporation income taxes, 74

Disability and old,age insurance, 74

Employment taxes. 74

Estate and gift texas, 74

Excise taxes, 74

Individualmin-me taxes, 74

Old-age and disability insurance, 74

Railroad retirement, 7 4

Tobacco taxes, 74

Unemployment insurance, 74

Withholding taxes, 74

Commissioner:

C Contest of slill, 14

ommissioners

at

r Untemal Revenue, 88

'Onspatent authority activity, 42, 43

Conference:

Appellate, 14, 15, 16

Pmcedures, 14, 15

Cooperation, Federal-tax, 44, 45

Conventions, tax (See tax conventions)

Coordination and cociptnartian with our .. . S

and agencies, 44

Corporation income taxes, 74

Additional assessments Proposed, 10

Collections, 74

Refunds, 75

Returns

Exarnintnill, 10

Filed, 76

Statistics an Courts), 51

Circuit courts of appeals, 51

Of Claims, 51

Supreme, of the United States, 5 1

The Tax Court of the United States, 50,

51

U .S. District, 51

Criminal prosecution :

Analysis of Cases, 19

Casies, di.pos .ls of, 19

Results of, 19

Current research program, 56-58

El

Data Processing activities, 74-77

Delinquent accounts :

Disposal., 16

Other, 16

Statistics on, 16

Delinquent ratyrn, in I. t ad ch.liqueney

I vers go ons

Addi tional tax from. 16, 17

Analysis at, 16. 17

Statistics an, 16

Determination letters :

Employee benefit plans. 7

Exempt organizations, 13

Pension trust plans, 7

Self-employed Persions benefit plans,

.iSupti 16, 1 .fic,s on, 1 17

.sigUity insurance taxes:

Collection, 74

Refunds, 75

Disciplinary actions, Dias. 68-72

riminant function, 1 1

E

Economic Stabilization Actiliti-, 33

Employment benefit plane, clet-mirt .tion

attare on . 7, 13, 16, 17

Employment taxes:

CollaCtions, 74

Refunds of, 75

Returns :

Examined, 10-12

Filed, 7 6

Enforcement activities

Additional tax from, 10-12

Alcohol and tobacco tax an d

22, 23, 29, 30 Appeals.

1 4

Delinqeunt accounts, 15

Delinquent returns, 17

Examination Program, 10-12

Mathematical verificotion, 78

Tax traud investigations, 17, IS

Workflow in Service and the coruts. 21

Estate ta .z

Collections, 74

Refunds of . 75

Returns :

Examined, 10-12

I'lliscl, 76

130 131
Estimated tax, declarations of

Corporation,76

Individual, 76

Examination program:

Classification and selection of returns,

.turns examined, number of, 1 1 10

Tax recommended, additional, 10

E.O..

.

Additional assessments, Collections, 7 ."! 10 4

Refunds of, 75

Returns filed, 76

Exempt organizations :

Determination letters on,7

Master file,13

FF :dd:M

: fi-mus regulations, 29, 30

F A,gm,m .-State Cooperation

.nt ., 57

Audit coverage, 10-13

Comptuar-Information exchange, 79

Training,72

File;

E mpt organization master file, ~3

Federal x" tax deposit system, 16

Financial management

Statistics on, 64

Firearms program

Cri me control.29-31

Foreign investors, 43, 44

Foreign tax assistance program, 46, 47

F reign tax officials assistance to, 44-47

Forms and form letters, go-.4

Fraud investigations,19

G

Gift It General Litigation Legal Services, 53 . . a :

C-1

lecti.ns, 74

Refunds of,7

Returns filed, 76

income taxies) ~ ~- ~. :.

Additiona

1,

from enforcement, 20

-

All returns,76

corporation . 76

Processing of protested cases, 14, 15

Indiethlents, 18-2

Ind ividual income taxes:

Appel late Division, processing of, 14, 15

Collection ., 74

Mathemati~sl verification of, 78

R funds of,75

R:turn5 :

Cl ssificallon and examination of, 11

FIZ,76 I.M.nnniplit

..clitntsiati ng taxpayers, 2-7

spection act vities :

~nter.t auditi&S-70

nto no Sec

.'

1 ty, 69

nvestige tion, 69, 70

IntStatistics on, 70-72

Stonn .1ligca Division

tics on, 19,20

Tax fraud investigation, 19

inter-American Center of Tax AdministmIntematione tons, 47

Interpretative activities, I tax training' 46,47

53,

54

132

Joint Committee on Internal Revanue taxa I, .

an,12

Laboratories

T-stin& 22

Less

I.

ctivitles, 49

L-si :ative activities, 49

Logi : ation :

Firearms 29-31

MI

M gnatic Tape, 79 M:nagement activities,

63

Map of in ornal revenue regions and districtS, 83

Mathematical verification:

Additional tax from, 78

Statistics on,78

0

Obligations incurred, internal Revenue

Service, 64

Officers, principal, Internal Revenue

Service, 84

op :mlion Dry-UP, 2

2

Do0 rating Financial Plan, 64

rganized Crime Drive, 25-29

P

Pension trust plans, is, 17

Personnalt

Equaa mployment program, 67

Handicapped '.v ; use 'f, 64-66

.atlgPti.na, 69- 70

Recruitment, 64

Statistics on, 64

Planning activities, P 55

rPVa .$ :

Foreign tax assistance, 46, 47

IdentifyU .S. taxpayers, 41, 42

Overseas taxpayer -ompliance, 41-43

g1riIc.1.rces,25-2

Taxpayer axsl,lanca, :' 2-7

Orb.

..,i .P

19 .28

Pretested cases, statistics on, 15

Pub :ic information pmgmm,I

ications, taxpayers,go

R

Railroad retirement taxes, 74

Recruitment, 64

Refundsi

Excessive prepayments, 75

Statistics on, 75

Undeliverable, 75

Regulations :

Alcohol and tobacco taxest, 22, 23

Other, 22,23

Selected regulations; published,

6

Request...

Technical Advice,6

Revenue Rulings, analysis of,6

It atul., filed:

Classification and selection of, 11

Examination of, 10~12

Number examined, 30-12

Projection,61

Statistics on, 61

Verification, 78

Self-employed persons benefit plans, de.

termination letters on, 16,'17

S :minar, Inter-American, 47 S nice to taxpayaM,2-7

Statistics, highlights, 59

Statistic, of income relea

5

Supervision of the Alcohra.n~ tobacc

o

SUPM industries, 22

me Court Decisions :

Civil cases, 94

Other court actions, 9

4

T

Tax conventions, 41-43

Tax to 'ns,9

Taxes. Additiona 2

From delinquent returns l secured, 16, 17

From enforcement, is, 1

7

From examination, 16, 17

From mathematical verification, 26, 1-7

Taxpayer assistance program, 2-7

Tax ruling$

Request for,6

Statistics on,6

Tobacco tax(es) :

Arrest,, 22

Collections, 74

Refunds

of

. 76

Results of Criminal action, 22

Returns

fil a

Seizures, 22d

Statistics on, 22

Training

Foreign, 46, 47 ~

Other,67

Ll

Unemployment insurance taxes :

Co Jections, 74

RZurids-of, 76

Returns filed,75

V

Verification, mathematical, results of, 78

W

Wines, taxes collected, 74-

Withholding texas by ernplogr, 74

Workflow in service and the ourts, 21

U. S. Gon'- ImurTclo OFF= : -s . ~ --

Corporatitiri'Statls`tYo_& jj

Statistics Divis1ou .=,ld;'