II

Reference

Do Not Remove

-~-ANNUAL

1975

Commissioner

.of

Internal

Revenue
L

Introduction

This report describes what the Internal

Revenue Service did in 1975 and how it did

it . It also describes what you, the taxpayer,

did and how well you met your responsibilities. Fiscal Year 1975 was a period of

particular stress for the Service, and in this

period Congress began its intensive interest

in IRS oversight . I testified eighteen times

before various congressional committees

during FY 1975. Out of this stress, this selfexamination and this heightened congressional activity will come a more responsive

and responsible system of tax administration .

In 1975 the Service collected nearly $294

billion in Federal taxes . The 1975 filing

period was highly successful from the

standpoint of the IRS and taxpayers as

more and better returns were filed earlier

than ever before . Anticipating taxpayers'

need for a prompt refund, the Service

responded by processing returns faster

than ever before .

The Tax Reduction Act of 1975, passed by

the Congress midway through the filing

period, called for a rebate of a portion of

individual taxpayers' 1974 tax liability . This

rebate program made unprecedented demands upon us, both in data processing

and taxpayer service . The record shows

how we responded to this challenge .

The real credit for this year's successful

filing period again goes to the American

people for the honest and conscientious

way that the vast majority met their tax

responsibilities .

We in the Service recognize our obligation

to provide you with the information and

assistance you need in order to prepare

your return and in 1975 we continued to

improve these services.

We also recognize our obligation to carry

out a strong enforcement program to assure you, the many taxpayers who conscientiously comply with the law, that those

few who do not will be held accountable .

That is why we have done our best to

design an enforcement program that is fair,

effective and comprehensive-one designed to treat all taxpayers uniformly and

with full recognition of their legal rights .

This report describes these activities and

others . It discusses our continuing efforts to

make sure that taxpayers understand their

rights as well as their responsibilities under

the law. It describes technical and administrative activities that may not be apparent to

most taxpayers but which are necessary to

the overall job of tax administration . A new

chapter on Employee Plans and Exempt

Organizations describes how we carried out

our new responsibilities under the Employee Retirement Income Security Act of

1974. ,

1A- 11 le hope that this report will H 119 help -you- utatw

understand tax administration and enforcement.

Donald C . Alexander

Commissioner
Table of Contents

Chapter 1 Taxpayer Service

Assisting Taxpayers 6

Tax Form Improvements 7

Communications With Taxpayers 8

Tax Publications 8

The Mass Media 8

Electronic Tax Service 9

Chapter 2 Collecting the Revenue

Receipts, Refunds, and Returns Filed 12

Rebate Program is

Presidential Election Campaign Fund 19

Mathematical Verification 20

Income Sources on Magnetic Tape 20

Chapter 3 Insuring Compliance

Audit of Returns 22

Delinquent Accounts 28

The Appeals Process 30

Tax Fraud Investigations 3 2

Chapter 4 Technical Activitie s

Tax Rulings and Technical Advice 36

Internal Revenue Bulletin 37

Accounting Methods Rulings 38

Chapter 6 International Programs

Tax Administration Abroa d

Technical Assistance To Foreign

Countries

44

4 6

Chapter 7 Legal Activities

Responsibilities of the Chief Counsel 48

Litigation 49

Technical 57

Administration 58

Chapter 8 Planning and Researc h

Planning Activities 60

Research and Testing 61

Legislative Activities 62

Federal-State Cooperation 63

Statistical Activities 64

Chapter 9 Internal Management of IRS

Maintaining Integrity and Efficiency 68

Management and Administration 72

Advisory Groups 7 6

Chapter 10 Appendix

IRS Organizational Chart

Map of Regions, Districts, and

Service Centers

Commissioners of the IRS (1862-1975)

Principal Officers of the IRS as of

78

79

80

Chapter 5 Employee Plans and June30, 1975 82

Exempt Organizations Audit Charts and Tables 8 7

Employee Plans 40 Index 149

Statistical Tables 119

Exempt Organizations 4 1

Actuarial Matters 41

I
4

Notes

All yearly data are on a fiscal year basis

unless otherwise specified . For example,

data headed "1975" pertain to the fiscal

year ended June 30, 1975; data shown as

of "July 1" are data as of July 1, 1974 . In

many tables and charts, figures may not

add to totals, due to rounding .

Chapter 1

Taxpayer Service

Assisting Taxpayers

Tax Form Improvements

Communications With

Taxpayers

Tax Publications

The Mass Media

Electronic Tax Service

For sale by the Superintendent of Documents

U.S . Government Printing Office

Washington, D.C. 20402

Price $2 .8 0

Stock Number 048-004-01300-2
6

Assisting

Taxpayers

The American tax system depends upon

self-assessment and voluntary compliance,

Every year, taxpayers must make their own

determination of their income, exemptions,

and deductions . compute their tax liability,

and file returns reporting the correct tax .

The Internal Revenue Service is fully aware

that taxpayers do not find this an easy task

and recognizes its responsibility to help

them as much as possible. The IRS believes that with the assistance it provides

through answering taxpayers' questions,

most individual taxpayers should be able to

prepare their own returns ,

In recent years, the IRS has expanded its

taxpayer service function, improved the

training of taxpayer service representatives, offered toll-free telephone assistance,

extended the normal business hours of

many IRS offices, and made special efforts

to help low-income, elderly and non-English

speaking taxpayers .

During 1975, the Service received about

40 .6 million written, telephone and walk-in

inquiries, compared to 34 .5 million in 1974 .

The total in 1975,consisted of over 29

million telephone calls, more than 11 million

walk-in inquiries, and more than 190,000

written inquiries . More than 60 percent of

these inquiries occurred during the filing

period from January 1 through April 30,

1975 . During that period, the IRS received

more than 16 million telephone calls, about

8 million walk-in inquiries, and over 50,000

written inquiries-a total of nearly 25 million

requests for assistance .

Walk-in taxpayer service was offered in 750

permanent offices and nearly 300 temporary locations in 1975 For taxpayers unable

to call or visit an IRS office during normal

business hours, 550 offices extended their

hours into the evening on weekdays or

were open on Saturdays .

The number of taxpayer service representatives was increased from about 1,900 to

over 2,300 this year and their training was

expanded so that they could provide better

service to taxpayers .

While taxpayers were encouraged to prepare their own returns, IRS personnel prepared returns for those who needed such

assistance.

In July 1974, taxpayer service was reorganized at the district level, separating this

function from enforcement activities . Under

this change, the collection and taxpayer

service functions now have equal organizational status in all IRS districts . This organizational realignment provides for year-round

managers who can give closer attention to

the program, identify and correct problem

areas, and improve the quality of the program .

Telephone Assistance

Toll-free telephone service was again offered in all 58 IRS districts in all 50 states.

The actual number of answering sites was

reduced from 135 in 1974 to 85 this year,

which improved the quality and depth of

assistance to taxpayers at each location .

Under this system, any taxpayer in the

United States may call the IRS for assistance without having to pay a long-distance

telephone charge . Toll-tree numbers are

listed in the income tax return packages

provided to taxpayers . They may also use

the toll-free telephone network to call the

IRS for clarification of many of the computer-generated bills and notices relating to

their accounts . These notices are accompanied by an enclosure which lists a tollfree telephone number and suggests that

the taxpayer use the number to obtain

assistance or further explanation .

Gabrielld Mitchell, a taxpayer service

representative in the Springfield District, answers

a taxpayer's inquiry about Federal taxes on the

toll-free telephone system .

Tax Form

Improvements

Other correspondence with taxpayers now

contains a telephone number and, on manually prepared items, the name of an IRS

employee to call if there are any questions

about the item of correspondence.

The toll-free telephone system has provided

taxpayers with greater telephone access to

IRS offices and has made the entire assistance program more efficient by reducing

the need for a taxpayer to visit an IRS

office .

Special Assistance Programs

Special efforts were made in 1975 to meet

the needs of the elderly and low-income

taxpayers unable to visit IRS offices by

providing them with income tax assistance

tn their own neighborhoods . Over 73,000

low-income and almost 26,000 elderly taxpayers were served in 197 5

The Service again provided special assistance to taxpayers speaking foreign languages with 148 IRS offices offering tax

assistance in Spanish and 154 offices providing help in other foreign languages .

Nearly 800,000 taxpayers received assistance uhder the Volunteer Income Tax Assistance Program (VITA) in 1975 . The Service trained more than 23 .000 volunteers .

who provided free assistance to elderly,

Spanish-speaking, low-income and other

taxpayers in their communities .

The successful 1975 filing period may be

attributed partly to the fact that we made

little change in the 1974 individual income

tax forms, and taxpayers could use their

1973 forms as a guide in preparing their

1974 returns . Returns were more COMpletely and accurately prepared with fewer

taxpayer errors this year ,

Among the minor changes we made on this

year's return was the addition of a "no" box

for the 1976 Presidential Election Campaign

Fund check-otf allowing taxpayers to check

either "yes" or "no" regarding their desire

to contribute to the Fund

Schedule 8 (Form 1040) was reintroduced

for the reporting of dividends and interest .

Many taxpayers and practitioners found the

reinstatement of this schedule helpful in

correctly reporting suclh~ income.

7

We added lines on Schedule A to itemize

deductions for taxes, interest . and miscellaneous expenses, and provided additional

space on Schedule D for listing capital

gains and losses .

Over 2 .6 million tax packages sent to

farmers and fishermen were printed on

recycled paper as a cost reduction and

environmental experiment. Public reaction

was generally favorable .

The Tax Reduction Act of 1975 required the

IRS to revise a number of major forms and

to develop new forms including : New Form

1120-FY (1974-75), Corporation Fiscal Year

Tax Computation Schedule ; Revised Form

1120-W (1975) . Corporation Estimated Income Tax: New Form 1040-FY (1974-75),

individual Fiscal Year Tax Computation

Schedule; Revised Form 1040-ES, Individual

Worksheet for Computation of Estimated

Tax ; New Form 5404-FY (l 974-75), Credit

for Purchase or Construction of New Principal Residence; Revised Form W-4, Employee's Withholding Allowance Certificate ;

Revised Circular E, Employer's Tax Guide;

Revised Publication 493, Supplement to

Circular E; and New Publication 870, Tax

Tables for 1975 Filers or 1974-75 Fiscal

Year Filers .

During 1975, a number of new pension

forms were developed to implement the

Employee Retirement Income Security Act

of 1974, including : Form 5301, Application

for Determination ; Schedule A (Form 5301),

Plan Characteristics Relevant to the Issuance of a Determination Letter; Form 5302,

Schedule of 25 Highest Paid Participating

Employees; Form 5304, Application for Determination-individual Retirement Account ;

Form 5305, Individual Retirement Trust Account Form 5303-A, Individual Retirement

Custodial Account ; Form 5306, Application

for Approval of Prototype Individual Retirement Account ; and Form 5330, Return of Initial Excise Taxes on Prohibited Transactions .
8

Communications During 1975, the IRS improvement of form

With Taxpayers ~etters, computer notices, and Other similar

axpayer communications continued to be a

major objective . A special unit of writereditors now reviews all such standard communications to humanize them and to make

sure they are clear and understandable to

the average taxpayer . National Office units

and field offices reviewed a total of 2,069

forms during the year, and were able to

eliminate 553 of them as duplicative or

unnecessary.

The Service continues to try to make all

taxpayers aware of their rights un

*

der the

tax laws and to provide complete and

courteous responses to taxpayer inquiries .

Tax

Publications

To reinforce information provided taxpayers

during direct contact . and to assure nationwide consistency in the application of the

tax laws, the Service also distributes, free of

charge, a number of publications .

The major IRS publications are Publication

17, Your Federal Income Tax, Publication

334 . Tax Guide for Small Business, and

Publication 225, Farmer's Tax Guide . Also

the Service has issued publications dealing

with special tax problems, such as reporting the sale of a personal residence or

computing the value of donated property.

New tax publications developed in 1975

included Publicat16n 587. Tax Information

on Operating a Business in Your Home,

Publication 588, Tax Information on Con_

dominiums and Cooperative Apartmients~

Publication 589, Tax Information on Subchapter S Corporations; and Publication

590, Tax Information on Individual Retirement Savings Programs,

In 1975, we inaugurated tree distribution of

Publication 17, Your Federal Income Tax,

and Publication 334*, Tax Guide for Small

Business, items that we had charged for

previously . Distribution reports for 1975

show that 1,5 million copies of Publication

17 and 600,000 copies of Publication 334

were distributed to taxpayers at no charge .

These publications, along with copies of the

various tax forms, were available to individual taxpayers at IRS offices throughout the

country on a walk-in basis . Many banks and

post offices also cooperated by making IRS

forms available to taxpayers. As another

option, the taxpayer could order forms or

publications by writing or telephoning IRS

offices . Over 4.4 million of these orders

were filled during the last half of 1975. In

addition, over 79 million individual income

tax packages were mailed to taxpayers in

advance of the filing period .

The Mass

Media

The Service continued to use the nation's

mass media to-furnish tax information to the

public . In 1975, over 17,000 radio and TV

stations, daily and weekly newspapers, and

magazines received material prepared by

the IRS to inform and assist taxpayers .

Service personnel participated in 6,500 interviews, answered more than 18,000 media inquiries, and made 5,500 talks to

citizen groups .

early 8,800 news releases were issued to

the media. These releases covered such

topics as services available to taxpayers,

appeal rights, correct filing of returns, the

Presidential campaign fund check-off, tax

advice for disaster victims, and the tax

rebate program . Some of the releases were

translated into Spanish for use in areas

where it is widely spoken as a second

language . Tax question-and-answer columns were written for nationwide distribution to weekly newspapers and magazines .

The Service also produced and distributed

to field offices a 271/2-minute color film on

audit and appeals procedures. This IRS film

was shown on 393 occasions by TV outlets

and 2,670 occasions by civic associations

and educational groups from January

through June of 1975 .

Electronic

Tax Service

The Integrated Data Retrieval System

(IDRS), which links all district and area

offices and Puerto Rico through video terminals to computer files at the IRS service

centers, processed an average of 1 .8 million inquiries per service center each month

during the last half of 1975 .

To cope with the rapid growth in use of

IDRS since it was made operational in

1974, the Service has installed larger computers and related components with faster

processing capabilities at all ten IRS service centers. For example, the IDRS can now

report on a taxpayer's refund status and on

rebates . which accounted for voluminous

taxpayer contacts in 1975 .

This increased IDRS capability will also

provide a better method of controlling information concerning the number of audits

being conducted, their status and their

disposition. The new system, the Audit Information Management System (AIMS), will be

installed and operating on a pilot basis in

1976 and is scheduled to be operating

nationwide in 1977 . 9
10

Chapter2

Collecting the Revenue

Receipts, Refunds, and Returns

Filed

Rebate Program

Presidential Election Campaign

Fund

Income Sources on Magnetic

Tape

Mathematical Verification
1 2

Receipts,

Refunds

an d

Returns Filed

A principal responsibility of the Internal

Revenue Service-probably the world's

largest collection agency-is the collection

of tax revenues . In 1975, gross tax collections rose to a record high of $293 .8 billion,

an increase of $24 .9 billion or 9 .2 percent

over 1974 . in spite of such counteracting

influences as the economic slowdown, and

various provisions of the Tax Reduction Act

of 1975 .

individual and corporation income taxes

accounted for over two-thirds of all tax

receipts . Individual income tax receipts,

representing more than half Of the total,

were $156 .4 billion . an increase of $13 .5

billion or 9 .4 percent over the previous

year . Corporate income tax collections

amounted to $45.7 billion, up $4 0 billion

(9 .6 percent) over 1974.

Employment taxes (Social Security . Unemployment and Railroad Retirement), the

second largest source of revenue, totaled

$70.1 billion, a rise of $8.0 billion or 13 0

percent over 1974 . In the two previous

years, increases were in excess of 19

percent . The increase in 1975 did not equal

this previous growth rate mainly because of

smaller increases in the social security tax

rate and the maximum amount of earnings

subject to tax .

Excise taxes, levied on a variety of products, services, and activities, declined

slightly . Receipts from these taxes totaled

$16 .8 billion, dipping $0 .3 billion (1 .5 percent), reflecting the continued phasing out

of the telephone excise tax, elimination of

the Interest Equalization Tax, and an overall

net reduction in receipts from auto and

energy related excise taxes .

Although it is the Service's job to collect

revenue, the IRS also makes refunds of any

excessive payments. In 1975, 67 .8 million

regular refund checks were issued, 2,0

million more than in 1974, Regular refunds

this year totaled $32 .2 billion, $4 .0 billion or

14 .2 percent more than last year .

In addition to regular refunds . rebates of

1974 individual income taxes, as provided

by the Tax Reduction Act of 1975, totaled

$7 .9 billion . Some 54 .7 million checks were

issued for the rebate alone and 9 .1 million

checks combined the rebate with a regular

refund . (Further detail on the rebate program is provided on page 18 )

Returns Filed and Refunds issued,

Individual Income Tax* January-June

(Cumulative 000's ; cumulative percentages)

1974 Jan Feb

Returns Flie d

Volume 3,638 34,669 51,610

Percent 4.5 43 0

Refunds Issue d

Volume 1,182 18,319 38,019 53,383

Percent 1 .9 29. 2

1975

Returns Filed

Volume 3,828 37,266 54,252

Percent 4.6 44. 7

Refunds Issue d

Volume 895 21,989 41,494

Percent 1.4 34. 0

*Refunds processed by National Computer

Center and scheduled for issuance by Regional

Mar Apr May June

77,283 79,747 80.672

64 .0 95 .8 98.9 100

61,690 62,783

60 .6 85.0 98.3 100

80,049 82,370 83,278

65 .1 96.1 98.9 100

55,130 63,598 64,730

64 .1 852 98.3 100

Disbursing Centers . Includes only forms 1040 and

1040A. Excludes Tax Rebates/Refunds.

1 3

IRS service centers received 125.1 million

tax returns in 1975, compared to nearly 122

million in 1974. Individual and fiduciary

returns totaled 85 .5 million, compared to

83 .0 million in 1974, More than 22 million

individual taxpayers . 27 percent of all individual filers, used the short Form 1040A in

1975, Perhaps influenced by the economy,

many taxpayers filed earlier this year, Anticipating taxpayers' need for a prompt refund, the Service responded by processing

returns faster than in any year in history ,

Number of returns filed, by principal type of return

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

Type of return

Grand total

Income tax, tota l

Individual and Fiduciary, tota l

Individual-citizens and resident aliens, tota l

All other individua l

Fiduciary

1974 1975

121,914r 125,11 7

95,313 r 98,454

83.029 85,519

81,480, 83,883

1092 121 2

1,440 1,51 4

Declarations of estimated tax, total 7,437 7,543

Individual 7,437 7,543

Corporation

Partnership s

Corporations

Other

NIA N/A

1,118 1,138

1,981 2,133

1,748 2,12 1

Employment tax, total 24,794 24,767

Employers' Form 941 16,960 16,925

Employers'Form 942 (household employees) 3 .309 3,161

Employers' Form 943 (agricultural employees) 457 454

Railroad retirement, Forms CT-1, CT-2 13 13

Unemployment insurance. Form 940 4,056 4,204

Estate ta x

Gift ta x

Excise tax, tota l

Occupational ta x

Form 720 (retailers, manufacturers, etc . )

Alcohol

Tobacc o

Highway use ta x

Othe r

Revised

Does not include Office of International Oper. returns.

ati .ns returns 1040NR, 1040SS-PR and 1042,

whit e 'he total in column 2, table 7 in Appendix

does include these returns ..

212 21 6

253 260

1,342 1,430

528 598

308 310

19 20

5 5

378 409

104 89

Consists of 1042, 1040NR and 1040SS-PR
14

1 5

Gross Internal Revenue Collection s

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

Source

Grand total 1

Income taxes, tota l

Corporation

Indiyidual, total

Withhold by employers 2

Other 2

Emplothreent lam, total

Old-age survivors disability

and hospital insurance, total

Federal insurance contributions

self-employment insurance contribution s

Unemployment insurance

Railroad retirement

Estate and gift tam

Excise taxes, tata l

Alcohol

Tobacco

Other

Increase or

Decrease

Per1974 1975 Amount cent

100.0 268,952.264 293,UZ?26 24,870,472 9. 2

Me 184,648,094 2OZ146,097 17,498,003 9. 6

15.6 41,744,4" 45,746,660 4,002,216 9. 6

53.2 142,903,650 3156,399,437 4 13,495.787 9.4

41 .6 112 .091,799 122,103,137 10,011,338 8.9

11 .7 30,811,851 34,296,301 3,484,450 11 .3

23.9 62.093,632 70,1140~81019 8,047,177 1&0

22.8 59,105,066 67,136,584 8,031,51B 13.6

21 .7 56,096.856 63,720,164 7,623,308 13.6

1 .2 3,008,210 3,416,420 408.210 13.6

0.5 1,480,574 1,388,0112 -92,492 -6.2

0.6 1,507,993 1,616,143 108,150 7.2

1 .6 5.100,675 4,611111,079 -412,696 -8. 1

5.7 17,109,653 16,847,741 -2641,112 .-1 .5

1 .8 5.358,477 5 .350 .858 -7,619 -0. 1

0.8 2.437,005 2,315,090 -121,915 -5.0

3.1 9.314,371 9,181,794 -132,577 -1 .4

G I C.11act-a at. dituded to e,clude announts vansie,red to IN werrinners a IS-,

r~iEwmatw-Col~ectwsolindMdual,ncmetw,,Ihhefdam

"ad"ned saiderately fro, old age, su,iwrs disability anal

hotrxial insurance taxes a, ages am salaries, Sonwhy otillecodris .

on Inds,xcluai morre tax not winhe, are not rewnw

sadanattly it- and deado,tyunsuronce I... . on .. ifaniploymm in- he annount on old-age, sumlors. chsatillIty,

am hospital unsunirtce us, odlextblils - is leasedl on

The Tax Dollar

Where It Came From

Fiscal Year 1975 (Gross Collections)

Corporation Employment

Income Taxes 15.60 1 Taxes 23.90

Excise Taxes 5.70

Estate and G ift Taxes 1 .60

Percent of

1975

Collections

esurnates Made by the SeChna,V the T,ww~ owsuant to the

p-sions at wc 201(a) of the 'alsecurity ciasarrended .

and

indwas "' do"g .

uryiyoh, dlutabaq a. hospital

~raxurxni:a .as The estimates - tor Me 2 classes of

ndmdual Incorne I as tae 'a me tox 0 delyed by subtraOn%the old-age

arid oxitalithty,mu, shoutuse firarh the otah ner! totals

noned .

I Includes Phaudersual Election Fund anhouning to $27,592,0X

1.1w.. Phistaitintiat Ewfion Fund erhousi 1. S31,656.525.

Net Internal Revenue Collection s

(including tax rebates) through June 30, 1975

(Dollars in thousands)

Source

Grand tota l

Corporation income taxes

Individual income taxes

Employment taxes, tota l

Old-age, survivors, disability

and hospital insuranc e

Railroad retiremen t

Unemployment insuranc e

Estate and gift taxes

Excise taxes

Net Collections

Percent

Gros of Collection: Refunds 1-14 Amount Total

293,82Z726 39,906,742 253,915,984 100 .0

45,746,660 5,125,547 40,621,113 16 .0

156,399,437 34,012,221' 122,387,216 48 .2

70,140,809 394,522 69,746,287 27. 5

67,136,584 360 .000 66,776,584 26. 3

1,616,143 313 1,615,830 0. 6

1,388,082 34,209 1,353,873 0. 5

4 .688,079 76,954 4,611,125 1 .8

16,847,741 297,498 16,550,243 6. 5

1 Does not include interest paid on refunds . 3 Includes rebates under the 1975 Tax Reduc- 2 For details See tables 5 . 6 . and 19 in tion Act . Appendix .

The Tax Dollar

Where It Came Fro m

Fiscal Year 1975 (Net Collections)
1 6

The Pipeline Tax returns received at IRS service centers

are systematically processed through a series of steps known as "the pipeline ."

Although service center machinery is modern, automated and organized to perform

the processing function in the shortest period of time, many of the operations are

performed by people . It is people, as this

photo series illustrates, who unload the mail

sacks bulging with tax returns, operate the

machines that open the envelopes, sort,

batch, number, examine and code returns,

program information from the returns into

computers . and most important of all, certify

returns for refunds. These photographs

were taken at the IRS service center in

Ogden, Utah.

Stop I

Income tax returns are received at

the service centers .

Step 2 Envelopes are opened and

counted at the rate of 10, 000-

12,000 per hour .

Step 3 Returns are sorted by type of

return,

Stop 4 Tax returns and accompanying

checks are compared .

Stop 5 Returns are edited and coded for

computer processing .

Stop 6 Tax return information is fed into

the computer .

Step 7 IRS computers perform validity

checks on tax returns .

Step 8 Refund checks are printed by,

Treasury Department Disbursing

Center .

17
1 8

Rebate

Program

On March 29, 1975, the President signed

into law the Tax Reduction Act of 1975, P .L.

94-12, which provided for a number of

measures designed to reduce taxes for

individuals and corporations, including the

rebate of a portion of income taxes paid for

1974 to nearly 70 million individual taxpayers . Generally . the law authorized a

rebate of 10 percent of the individual's

1974 income tax liability, with a minimum

rebate of $100 and a maximum of $200. If a

taxpayer's 1974 income tax was less than

$100, the rebate would equal the amount of

tax actually paid . In addition, it the taxpayer's adjusted gross income was between $20,000 and $30,000, the $200 maximum rebate was reduced by one percent

of adjusted gross income in excess of

$20,000 up to $30,000. Thus, taxpayers in

this income bracket received checks for

amounts between $100 and $200. Taxpayers with adjusted gross income in excess of

$30,000 received $100. While the intent of

the Congress was to concentrate the tax

reductions among lower and middle income

taxpayers, these minimum, maximum and

phase-down provisions confused many taxpayers and prompted a great many inquiries to the IRS .

The rebate was enacted midway in the

1975 filing period and at the peak of returns

processing . By planning for the rebate even

before the President signed the law, however, the Service was able to implement its

rebate program in late April and insure that

the first of the rebate checks would be

mailed to taxpayers on May 9, 1975 . The

bulk of rebate mailing had been completed

when the fiscal year ended June 30. The

table at right provides details of th e

rebate program.

Rebate Check Processing At the Bureau of

Accounts, Washington Disbursing Office, the

woman (rear right) manually reviews numerical

sequence of checks, while the man in the

foreground inserts checks for machine

verification prior to insertion in envelopes .

Rebate Program

Amounts and

Applications

(through June 30, 1975 )

Number of rebate credits 65.5 million

Amount of rebate credits S 8 .2 billion

Average rebate credit $125 .39

Ap lication I of rebate credits :

~.Ifiuncied ~-Number 63.8 million

Amount $ 8.0 billion

Average $124.74

Applied to outstanding balance due or

temporarily unapplied pending resolution of

taxpayer's account

Number 3.5 million

Amount $ 0.3 billio n

Datals may not add to totals d,8 to ro,,dim g

Apoicandm axwed Ind total nibates a-e some rebat.

pana lly reftnded and partially appied to an otfistancimg

dal- d,,"a

%datat; pimessed! toy Nationtil Comouter Cemer and

schadtaed to, ismanoo by H,giortal Disbursing centers to

!Uoinier.. Indi,des S21 .4 m0on whedtileil in Aide 1975 am

litued 1 . fit . - Uly 1975 0 J." 1975,$7.9

b0li-n isbass had =tastaid .ey I

Presidential

Election

CarnTaign

Fun

Milwaukee Postmaster Emerson Paulson shows

Commissioner Alexander the first batch of rebate

checks to be delivered to taxpayers i n

The IRS processed approximately 81 .7 million individual returns between January 1

and June 30, 1975 . Of that total, 19 .8

million or 24 .2 percent had designations for

the Presidential Election Campaign Fund,

compared to 13 .6 percent in the prior year .

A block, indicating the taxpayer's desire not

to designate to the fund . was placed on the

return for the first time this year. Of the total

returns processed, 33 .7 million or 41 .2

1 9

Milwaukee . On th is date, May 8, 1975, the

Commissioner waSvisiting the Milwaukee District

Office . (Photo Courtesy of Milwaukee Journal )

percent checked this block, thus declining

to designate .

The total amount crediited to the Fund

during fiscal year 1975 was $31 .7 million,

including $31 .5 million on 1974 returns and

$0 .2 million from prLor year returns, The

cumulative amount credited to the Fund

(1972, 1973 and 1974 returns) since the

check-off was initiated is approximately

$61 .7 million .
20

Mathematical During the year, the IRS checked the

Verification

Income

Sources

on

Magnetic Tape

mathematics on 84.6 million individual returns . The IRS calculated the tax on 1 .0

million returns, manually verified the tax on

2 .5 million returns and computer verified the

accuracy of taxpayers' calculation of tax on

81 .1 million returns, As a result of computer

verification, 1 .8 million taxpayers had decreases in the tax liability shown on their

returns totaling $163 million . an average of

$93 per return . These decreases resulted in

either a larger refund for the taxpayer or a

smaller tax due billing, On 2.0 million reIndividual Income Tax Returns

Mathematically Verified By Computer

(in Thousands)

Number verified by computer

turns, errors by taxpayers increased their

tax liability by $270 million, an average of

approximately $134 per return . The results

of this year's computer mathematical verification program are shown in the table

below .

In addition to mathematical verification of

returns, the Service also used its computers

to check the estimated tax credits claimed

on individual returns . This verification determined that taxpayers underclaimed $185

million in estimated credits and overclaimed

credits by $402 million .

1974 1975

81,649 81,067

Number of returns on which mathematical errors were

detected

Percent of returns with mathematical error s

Returns with increase :

Numbe r

Amoun t

Average amount (dollars )

Returns with decrease :

Numbe r

Amoun t

Average amount (dollars )

During 1975, the IRS received more than

428 million information documents from

businesses and organizations required to

report payments of wages, interest, and

dividends . Nearly 181 million of these

documents were submitted on magnetic

tape in 1975 as a result of the Service's

program of actively encouraging all

organizations which have tape capability or

access to computers to report on tape . The

increase in the number of reporting entities

to 15,500 reflects a shifting by many

organizations from. paper filing to magnetic

tape filing .

5,061 3,771

6.2 4. 7

3,073 2,01 4

$399,137 $270,09 5

$ 129 .90 $ 134.1 4

1,988 1,757

$177,890 $163,25 1

$ 89.53 $ 92.9 1

Information Documents

Reported on Magnetic Tape

Tax Documents Reporting

Year (Thousands) Entitie s

1966 26,248 59 1

1967 36,492 1,048

47,686 2,42 6

1969 58,951 2,963

1970 68,300 4.63 7

1971 1 91,449 8,504

1972 115,008 12,758

1973 144,533, 13,128

1974 180,946 15,500

Chapter 3

Insuring Compliance

Audit of Returns

Delinquent Accounts

The Appeals Process

Tax Fraud Investigation s

I Revised
2

2

Audit of

Returns

The IRS audits tax returns in order to help

ensure the highest possible degree of voluntary compliance with the tax laws . While

audit activity is the primary method that the

IRS uses to encourage voluntary compliance, every return is subject to scrutiny by

IRS employees and computers . When a

return is received in one of the 10 IRS

service centers, it is first checked manually

for completeness and accuracy and certain

obvious errors such as the claiming of a

partial exemption or duplicate deductions .

Then the service center's computers check

the accuracy of the taxpayer's arithmetic

(See Mathematical Verification, page 20)

and pick up other errors which may have

escaped manual detection, such as the

failure to reduce medical deductions by 3

percent of adjusted gross income .

Returns Selection

The primary method used by the IRS in

selecting returns for audits is a computer

program of mathematical formulae-the

Discriminant Function System (DIF)-which

measures the probability of tax error in

each return . Returns identified by the DIF

system as having the highest probability of

error are then reviewed manually, and those

confirmed as having the highest error potential are selected for audit . Since this,

system was introduced in 1969, the IRS has

reduced the number of taxpayers contacted

whose audit would result in no tax change

(all taxes) from a peak of 43 percent in

1968, to a historic low of 23 percent in

1975 .

For the first time in 1975, the Service began

using the DIF system for the selection of

partnership returns . In 1975 and 1976,a

Taxpayer Compliance Measurement Program (TCMP) will be conducted on fiduciary returns . Filing and reporting characteristics identified by this program will be

used to determine the feasibility of developing DIF formulae for fiduciary returns .

Returns are also selected for audit through

the application of certain criteria during the

initial computer screening process which

automatically trigger selection of the return .

Returns may also be chosen for audit under

a third computerized selection system, the

Taxpayer Compliance Measurement Program (TCMP), which makes a random selection of returns within income classes for

research purposes, such as updating DIF

formulae on more current taxpayer filing

and reporting characteristics . Audits conducted under this program must be more

intensive than most in order to develop the

information required by the program .

The computer selection of returns is complemented by manual selection in various

instances . For example, it the IRS is auditing the return of a partnership (or of one

business partner) the returns of the partners

(or additional partners) may also be audited . Other returns may be manually selected as a result of information from other

enforcement activities, news reports or

criminal investigations . The IRS also

screens returns with adjusted gross income

above certain limits and returns of taxpayers who submit claims for refund or credit

after filing their returns .

Results of Audit Activit

y

The IRS audited 2,465,000 tax returns of all

types in 1975, 277,000 more than the

2,187,864 audited in 1974 . The 1975 total

was more than in any year since 1969,

when 2 543 929 were examined . Of the total

returns'audi'ted in 1975, 112,550 were examined by service centers, compared to

80,200 last year. The remainder were examined in-district offices by either revenue

agents or tax auditors, Examinations conducted by revenue agents under field audit

techniques totaled 812,336 returns, an increase of 123,279 returns or 18 percent

over last year, Examinations conducted by

tax auditors under office audit procedures

numbered 1,540,466 returns, an increase of

121,859 returns . Audit coverage of income,

estate and gift returns increased to2.55

percent, compared to

2 .39 percent

achieved in 1974 .

The'Service's examination program resulted

in $5 .3 billion of additional tax and penalties

recommended . While recommendations exceeded $5 billion for the third straight year,

the total was about $600 million below last

year, mainly because there were nearly 600

fewer returns with unusually large deficiencies of $100,00 and over . 2

3

Number Returns Examined

Jhousands)

Fiscal Year 1971 thru 197

5

Type of Retur

n

Revenue Agents

Grand Total

Income Tax Tota l

Individua l

Fiduciary

-Corporation

Exempt Organizations

1 1

Employee Plans

(990P and 4848)

NA

Estate and Gift Tax

Excise& Employment 10

0

Tax Audittors

Grand Total

IncomeTax Tota l

Individual

1971 1972 1973 1974 2 197

5

566 593 588 689 81

2

429 424 411 506 60

6

289 264 260 306 35

5

7 5 512

129 135 122 134 15

3

18 22 19

21

NA 2 426

5

36 35 41 49

50

133 136 133 156

1,080 1,103 1,183 1,419 1,540

1,058 1,073 1,143 1,377 1,48

6

1,057 1,072 1,143 1,376 1,48

3

Fiduciary

Corporation 1 1

2

Exempt Organizations

Employee Plans

- - 1

(990P and 4848) NA NA --

Estate and Gift

- Tax

4 5 8 10

12

Excise and Employment

18

Service Center Examinations

Grand Tota l

Income Tax-Individual

Excise tax

Total

Grand Tota l

Income Tax Total

Individua l

Fiduciary

Corporation

25 31 3242

80 113

80 1058

1,646 1,696 1,771 2,188 2,46

5

1,487 1,497 1,554 1,963 2,19

7

1,346 1,336 1,404 1,762 1,94

3

7 5 512

130 136 122 134 155

Exempt Organizations

11

Employee Plans

(990P and 4848)

NA

Estate and Gift Tax 4

1

Excise. and Employment 117

18 22 20

22

NA 2 42

65

40 49 59 6

2

158 167 165 206

Not Avaiiable~ombined with individual

*Less than 500

2 1974 Revised Data
24

During 1975, assessments totaled a record

S4 .5 billion, including an all-time high of

$3 .8 billion in assessed tax and penalties

and S695 million in interest .

In 1974, assessments amounted to $3 .7 billion, of

which $3 .1 billion represented tax and penalties and $626 million represented interest.

Examining officers are required to determine a taxpayer's correct tax liability--no

more, no less . This means that examiners

look for indications that taxpayers have

overstated, as well as understated, their tax

liability, In 1975, Service examinations disclosed overassessments on 122,399 returns, accounting for refunds of $302 .8

million .

Service Center Examination

s

The IRS service center review program

began in 1972.

It is generally limited to the

verification or resolution of issues.which can

be satisfactorily handled by service center

personnel through correspondence with the

taxpayer, More than 1,329,000 returns were

checked in service centers in 1975, an 86

percent increase over 1974 .

James Whitmore, well-known actor, discusses

IRS audit procedures with Kama Podsadecki,

office auditor, in a scene from the IRS film, "Why

me, Tom Krofik?" Eight other IRS employees,

along with professional talent, appear in the

More than half of these returns involved

obviously unallowable items, such as medical expenses not reduced by the 1 percent

and3 percent limitations . More than

952,000 returns with unallowable items

were corrected in 1975, compared to approximately 406,000 in 1974. Another major

issue verified by service center personnel

through correspondence with taxpayers this

year was that of taxpayers claiming to be

heads of households . Approximately

209,000 returns claiming such status were

verified in 1975 . compared to 195,000 last

year .

The service centers also conducted correspondence examinations of returns selected under district office criteria involving

issues such as charitable contributions or

interest payments, which generally can be

resolved through correspondence with the

taxpayer. Approximately 112,550 returns in

this category were examined during 1975,

an increase of nearly 40 percent over the

80,200 examined in 1974 .

271h-minute film, which highlights taxpayers'

rights in dealings with the IRS . Among the topics

discussed in the film are audits and appeals,

delinquent taxes, taxpayer service and the

processing and confidentiality of tax returns .

Recommended Addlitional Tax and Penalties

(millions)

Fiscal years 1971 thru 197

5

Type of Retur

n

Revenue Agents

Grand Total

Income Tax Tota l

Individua l

Fiduciary

Corporation

Exempt organizations

Employee Plans (990P and 4848 )

Estate and Gift Tax

Excise& Employment

Tax Auditors

Grand Total

1971 1972

3,216 . 2

2,653 .3 2,612.6 3,955.4 4,790.0 3,912. 5

718.5 761 .3

15.2 21 . 0

1,933 .1 1,828.6 3,068.6 3,888.1 2,931 .9 _ 7

NA

4 .8 32. 5 4 .4

471 .1 432.2

91 .9 133. 1

192.1 235. 4

Income Tax Total

Individual

Fiduciary

Corporatio

n

Exempt Organization

s

Employee Plans (990P and 4848)

Estate and Gift Tax

Excise and Employmen

t

Service Center

Grand Tota l

Income Tax-individua l

Excise Tax

Total

Grand Tota l

Income Tax Total

Individual

Fiduciary

Corporation

Exempt Organizations

Employee Plans (990P and 4848)

Estate and Gift Ta

x

Excise and Employment

690 .4 564~3 611 .2

152.7 195.4 287 .6

269.9 297.3 355. 5

181 .9 222.3 241111.6 273 .6 327.0

179 .5 221 .9 2 .4

248 .1 273.2 325.6 1 .2

6 .3 6.8 .3 1 .1 9.9 13.2 14 .4 3 .9 6.3 11 .4 10 .5 14. 1

62.2 143

.7

62.2 142 .9. 8

3,408.3 3,413.1 5,068.4 5,909.2 5,310.5

2,835.2 2,834.8 4,203.9 15,125 .8 4,382. 4

dud .u 9832 1,1o6.5 1,216,9 1,395 .2 1

18 .4 15.4 15.3 21 .3 1 .935 .5 1,828.9 3,068 .8 3,888 .4 2.933. 0 1 .7

1973 19742 197

5

3,177.8 4,79&6 5,649.7 4,811 . 3

858 .4 881 .5 926. 7

18 .3 15.2

43 13. 2

NA NA

4 .3 13 .2

NA NA

4 .8 32 . 5

- .4 .4

477 .4 439.0 700.3 ~77 5 6256

__~7-5 139A

Not Available-combined with individual

1974 Revised Data

164 .1 205 .9 302.5

25
26

Computer Assisted Audit

s

The Service is keeping pace with the growing number of automated accounting systems by expanding the use of computers in

audits . Both generalized computer programs and specifically developed Programs

are used to retrieve and analyze data

essential to the examination . They permit an

automated "eye-balling" of massive data

files with the printout of only those items Of

possible audit interest . Both taxpayers and

the IRS save time and expense since

compute r-assisted audits can be done in a

fraction of the time needed to do the same

job manually .

These audits are done by computer audit

specialists, experienced revenue agents

who have received intensive training in

computer hardware, programming languages and audit techniques They work

with automated accounting systems . During

1975, the number of these specialists was

increased from 84 to 104, including, for th

e

first time, two women revenue agents .

The Program Audit Library (PAL), a system

of generalized computer programs developed by the Service and designed specifically for tax audits, was updated and

expanded in 1975 In addition, the IRS has

developed computer programs to perform

statistical sampling techniques which will

soon become part of the PAL Syste

m

Computer audit specialist Leo Terr checks final

output of hardcopy which will :>ecorne part of his

workpapers .

Coordinated Examination Program

Since larger corporations have complex

accounting operations and present complex

tax issues, the Service has increasingly

turned to the team audit or coordinated

examination approach when reviewing their

accounts . This approach combines the

skills of the accountant-revenue agent with

those of economists, computer audit specialists, international tax examiners, engineering agents and employee plans examiners .

At the end of 1975.

the 1, 176 large cases

identified by the National Office averaged 2.6 open years . This is the third consecutive year in which the average of open

years in the large case program has been

less than three.

The IRS, during 1975, expanded its practice of conducting industry-wide audits involving the contemporaneous examination

of all major companies in a given industry .

So far, these audits have not only saved

time for the Service and the taxpayers, but

have also resulted in greater uniformity Of

tax treatment among the industries examined . Five industries are currently being

audited by this technique .

Joint Committee Review

.The Internal Revenue Code provides that all

income, estate and gift tax refunds and

credits which exceed $100,000 must be

reported to the Joint Committee on Internal

Revenue Taxation . During 1975, 1,356

cases involving overassessments of $969

million were reported to the Joint Committee, as compared with 1,671 and $1,1 billion

in 1974 .

Tax Shelter Program

In 1974, the IRS established a nationwide

tax shelter examination program coordinated by the National Office, Due to the

multi-district involvement of promoters and

investors, these examinations were conducted under the industry-wide audit concept . The use of this approach insures a

greater degree of consistency and uniformity in the Service's overall treatment of the

tax aspects of shelter programs .

During 1975, industry-wide examinations of

tax shelters were conducted ty field personnel analyzing the entire enterprise first

to determine whether participants, barring

unexpected problems, can reasonably be

expected to earn a profit appropriate to the

investment and degree of risk involved . The

business is then studied for the possibility

of improper or excess allocation of deductions and also to make certain that individuai items causing operating losses are

properly claimed deductions ,

Based on experience acquired in 1975, the

IRS will continue to identify and examine

other abusive tax shelter areas using industry-wide audit methods when appropriate .

Possible tax shelter abuses by investors in

oil, real estate, cattle, equipment leasing

and motion picture industries are being

studied ,

The large size of the partnerships involved

in this program (often thousands of individual partners) presented a major clerical

problem in controlling large numbers of

related returns and in processing subsequent audit adjustments to individual partners . The IRS has, when possible, automated the manual workflow involved in the

audit of large scale partnerships and now

has the capacity for computer-gene rated

audit control documents and audit adjustment reports associated with these examinations . 2

7

National Shared Ubrary

The Service has established a National

Shared Library on the GSA-approved Infornet Time-Sharing Computer System which

is utilized as a technical and administrative

too[ in performing the complex work involved in many examinations . The initial

computer program placed in this library will

recompute the highly complex Form 11 20L

Insurance Company Return to reflect audit

adjustments and generate a marginal tax

table for each return, This shared system

avoids duplication of storage charges,

since authorized users in IRS districts and

regions do not have to store programs in a

separately maintained library . It also facilitates standardized and consistent program

changes or updates .

Computer Production of

Report on Audit Changes

The IRS completed a study in 1975 on the

type of report writing equipment necessary

to Produce Form 1902-E, The Report of

Individual income Tax Audit Changes, for

audit operations at service centers and

district offices . It was found that existing

service center computer systems could

best fulfill Form 1902-E requirements for the

service center audit divisions since this

type of equipment was on-site and affords

a low user cost . A computer program was'

implemented at all service centers to generate both the basic Form 1902-E and its accompanying Form 3547, Explanation of

Adjustments, consisting of standard explanations of adjustments . However, the study

also showed that on-site equipment was

also needed in district offices to service the

office audit workload. As a result, efforts

are presently underway to replace older

machines in district audit operations with

more modern and efficient report writing

equipment . I
2 8

Delinquent The Service makes every reasonable effort

Accounts to collect taxes due, starting with notices to

taxpayers requesting payment and then

establishing delinquent accounts for assignment to enforcement personne l

In 1975, IRS district offices closed over 2 .9

million delinquent accounts receivable

cases, including approximately 376,000

cases in which the taxpayer, when notified

of a delinquency, contacted the IRS field

offices to resolve the matter ("notice"

cases) . The remaining 2 .5 million delinquent

accounts required field contact by district

employees . Approximately 58 percent of

these delinquent accounts involved business taxpayers .

More than $2 .8 billion in delinquent taxes

was collected during the year, an increase

of $292 million over 1974 . District personnel

also crbsed over 1 .2 million delinquent

return investigations, including 168,000

cases in "notice" status. In addition,

388,000 contacts were made by district

personnel in the returns compliance program, which detects the non-filing of tax

returns . These efforts secured 943,000 delinquent returns involving nearly $548 million

in additional taxes ,

The Service has long recognized that preventing a delinquency is at least as important as collecting a delinquent account . The

delinquency prevention program, which

was given new emphasis in 1974, continRestaurant owners David Hedison and Pat Rnley,

stars of new IRS film, "Hey, We're in Business," mix

business record keeping, taxes, and a late snack

shortly after opening their restaurant in this scene

from the film. Among the areas covered by the film

are the necessity of proper recorckeeping, free

ued this year. Business taxpayers identified

as posing significant risks of becoming tax

delinquents were contacted by district collection personnel in an effort to help the

taxpayers eliminate the cause of the potential delinquency and meet all tax obhgations .

Withholding Tax Laws

Strictly Enforced

In recent years, an increasing number of

business taxpayers have failed to deposit

and pay over the money they withhold from

their employees' salaries . Instead, these

trust funds have been improperly used as

working capital or otherwise diverted . The

Service uses a number of approaches with

these employers to enforce compliance with

the law regarding withholding requirements .

Under the Federal Tax Deposit Alert program, the Service's data processing system

identifies employers who are not making

appropriate deposits . Before the return is

due, revenue officers call on .these employers to eam why they have not complied with the deposit requirements .

To accelerate the billing of delinquent employers, delinquent accounts covering withheld tax are taken out of the ordinary

processing cycle and immediately assigned

- to the district offices .

taxpayer assistance available from IRS offices,

what a business should do it tax deadlines cannot

be met, and withholding tax responsibilities relating to employees . The film can be borrowed free

from the IRS by contacting any district office.

The Service believes that another answer to

this abuse and to the general problem of

taxpayers using the government's money

rather than borrowing funds through legitimate means is Public Law 93-625 . which

raised to 9 percent the interest rate on tax

delinquencies . This rate will be adjusted

periodically to reflect changes in the prevailing prime rate charged by major banks .

The IRS also is vigorously pursuing civil

and criminal sanctions against noncompliant

taxpayers . Public Law 85-321 provides for a

$5,000 fine and/or a year in prison for failure

to deposit withheld taxes Properly . During

1975, an intensified prqgram resulted in 127

convictions and guilty pleas in such cases .

Collection initiatives

The Service also undertook, during 1975, a

thorough reappraisal of delinquent tax collection practices. The goal was to make the

collection process more clearly understood

by the taxpaying public and to ensure that

the tax laws are administered in a fair,

impartial manner . To accomplish this goal,

a major program, "The Collection Initiatives ." was implemented and its changes

are now showing results .

Some of the changes being considered or

already implemented include : 1) the ac- ceptance of postdated checks to cover the

terms of an installment-payment agree .

ment, for the greater convenience of taxpayers and the IRS ; 2) expanded use of

payroll deduction agreements ; 3) reduction

of the amount of information taxpayers must

furnish on financial statements: 4) routinely

extending installment arrangements to firsttime delinquent individual income taxpayers

who are otherwise in full compliance with the

tax laws, 5) the substitution of a telephone

contact for one of four written notices to explain the seriousness of tax delinquency and

to help the taxpayer avoid drastic enforcement action, such as levy'or seizure: 6) greater supervisory review before the property of

a delinquent taxpayer is seized ; 7) a review of

the legislative and procedural exemptions

and exclusions from our levy.authority .

Also, the procedure for administering Public

Law 85-321 has been strengthened and

will be expanded to encompass a larger

number of chronic trust fund delinquents.

Uniform criteria for selecting, investigating

and preparing trust fund prosecution cases

have been established to better ensure quality referrals to the Department of Justice . As

part of the revised "Trust Fund Compliance

Program," noncomplying taxpayers who are

not the subject of a criminal prosecution

recommendation, as an alternative . will be

required under Trees . Reg . 601 1(a)-5 to file

returns and pay withheld employment taxes

monthly instead of quarterly ,

Gross tax, Penalties and interest resulting from direct enforcement (In thousands of dollars)

Ite m

Additional tax, penalties, and Interest ass-eased,

tota l

From examination of tax returns, tota l

income tax, tota l

Corporatio n

Individual and fiduciary

Estate and gift tax

1974 197 5

4,208,948, 5,203,155

3,724,121 4,526,347

3,127,166 3,839,758

2,142,340 2,596,803

984,826 1,242,955

458,884 482,250

Employment tax (including withheld income tax) 82,970 131 .082

Excise tax

From delinquent returns secured, tota l

By district collection division s

By district audit divisio n

Delinquent taxes Collected, 'total

r Revised

55,102 73,257

484,827 676,80 8

417,735 547,568

67,092 129,24 0

2,527,845 24819,752

29
3

0

The

Appeals

Process

MRS

Delinquent accounts are controlled by the

Integrated Data Retrieval System (IDRS),

which automatically issues and controls

case assignments, monitors index files,

computes interest and penalties on accounts, allows direct input of payments on

accounts . issues certain correspondence

and forms, and provides necessary management reports .

Administrative Appeals

The Internal Revenue Service encourages

the resolution of tax disputes through an

administrative appeals system rather than

through litigation . Taxpayers who disagree

with a proposed change to their tax liability

are entitled to a prompt, independent review of their case, The appeals system is

designed to minimize inconvenience, expense, and delay to the taxpayer in disposing of contested tax cases .

Within the system, there are two levels of

appeal : the district conference staff in the

audit division of the district director's office

and the appellate division in the regional

commissioner's office, Each level of appeal

is independent of the other, and each has

different authority and jurisdiction, Their

common and principal objective is the early

disposition of disputed cases with a fair

and impartial application of the law. For the

initial appeal conference, a taxpayer may

choose either the district conference staff or

the regional appellate staff . Opportunities

for such a hearing are offered at 58 district

offices and 36 regional offices throughout

the country, Conferences are also arranged

as needed at other IRS locations by circuitriding conferees at places and times convenient to the taxpayer .

Proceedings are informal in both of these

offices. Taxpayers may represent themselves or be represented by an attorney,

accountant, Or any other advisor enrolled to

practice before the IRS . If the disputed tax

liability is $2 .500 or less the taxpayer may

obtain a district conference and a subsequent regional conference without filing a

written protest . At the conference, taxpayers are given the opportunity to present

their views and discuss the merits of the

issues. It agreement cannot be reached

during the district conference, the taxpayer

is advised of his or her further appeal rights

and may then request a regional appellate

office conference .

In a majority of cases, the taxpayers and

district or regional conferees reach a mutually acceptable basis for resolving their

tax disputes . Consequently, very few cases

go to trial . In the past 10 years, 97 percent

of all disputed cases were closed without

trial . District conference staffs reached

agreement with the taxpayer in about 75

percent of the cases considered . In 1975,

the appeals function disposed of 54,945

cases by agreement ; the Tax Court tried

967 cases ; and the United States District

Courts and Court of Claims tried 376 cases .

Thus in disputed tax matters, the administrative appeals system continues to serve

taxpayers well . The system provides for an

expeditious, independent, and impartial review of tax cases, and one measure of its

success is its ability to resolve the great

majority of tax disputes efficiently and without litigation .

Appellate Workload

The cases considered in the appeals process cover a wide range of issues from the

most elementary to the most complex . They

involve additional taxes or claims for refund

ranging from smail amounts to millions of

dollars, including individual and corporation

income tax, estate tax, gift tax, excise tax,

employment tax, and offers in compromise .

Deficiency cases can also be considered

before a petition is filed in the Tax Court

(nondocketed cases) and after the petition

has been filed (docketed cases) . Nondocketed cases make up about 62 percent of

the appellate workload. In 1975, 75 percent

of the nondocketed cases closed by appellate offices were closed by agreement with

the taxpayer. The remaining 38 percent of

the appellate workload consists of docketed cases in which settlement negotiations

continue in appellate offices after the filing

of the petition . In 1975 approximately 75

percent of the docketed cases completed

by appellate offices were closed by agreement with the taxpayer . 3 1

District Conference Settlements

Since April 1, 1974, district conference

staffs have had the authority, where the

amount of tax in dispute was $2.500 or less . to settle cases by taking into account the haz '

ards of litigation, including the

chance that the SeNice might lose the case if

it were litigated . Previously, only appellate

conferees had this seftlement authority,

which meant that many taxpayers had to take

their case to the regional appellate office in

order to resolve unclearlssues ,

Since receiving this settlement authority,

district conference staffs have significantly

increased the percentage of agreed cases . About 25 percent of the cases where the new settlement authority could be exercised

to resolve doubtful issues have been set- tled . The results have been favorable to

taxpayers in terms of time, convenience

and expense as well as to the IRS in terms

of reducing the number of cases going to the regional appellate office or to the Small

Case Division of the United States Tax Court .

Other Appeal Option

s

It a tax dispute cannot be resolved a[ either

the district or the regional level, the tax- payer is advised of his or her remaining appeal rights . Generally. the taxpayer may petition the United States Tax Court . When the disputed tax does not exceed $1,500,

a

simplified procedure is available under the

Tax Court's Small Case Rules . Except in unusual circumstances . the timely filing of

a

petition with the Tax Court prevents the

assessment and collection of the tax until

the court has made its decision . Even if a

Petition is filed with the Tax Court and the

case is docketed for trial, the case may be

settled with the regional appellate office at

any time before the trial begins .

If the taxpayer does not want to litigate a

case in the Tax Court, he or she may pay

the tax deficiency and file a claim for refund

within two years from the date of payment .

The same administrative appeals are then

available to the taxpayer . If the claim is denied by the IRS, or if the IRS takes no

action within six months, the taxpayer may

file suit against the Government for refund

in either a United States District Court or

the Court of Claims .
32

Tax Fraud

Investigations

The Intelligence Division is responsible for

the enforcement of the criminal provisions

of the tax laws. Special agents investigate

evasion of income, estate, gift and excise

taxes, failure to file returns, failure to remit

trust fund taxes (withheld income and social

security taxes) the filing of false withholding

exemption statements and false claims for

refunds and the preparation of false returns

for others . When evidence of tax evasion or

tax fraud is idenlified, the Intelligence Division investigates and recommends prosecution when warranted ,

Special projects are sometimes carried out to

determine the extent of noncompliance in a

given geographical arealor occupational

field, if a pattern of noncompliance is detected, or to increase the coordination of investigations covering an already identified

area of noncompliance. One successful pro_

fact dealing with the appraisers, inspectors

and contractors working with the Federal

Housing Authority was substantially completed this yeat . Since August 1972. when

this investigation began, there*have been 66

prosecution recommendations and the additional tax and penalties proposed exceed

$13 million dollars . Other recent and significant intelligence investigations have focused

on foreign bank ahd brokerage accounts .

nuclear power plant construction, corruption

of public officials through payoffs and

kickbacks, and tax return preparation.

During 1975, the Intelligence Division completed 8,731 investigations and recommended prosecution of 2,760 taxpayers .

Grand juries indicted or courts filed informations on 1,495 taxpayers . Prosecution

was successfully completed in 1,219 cases .

In 1,046 cases taxpayers entered guilty

pleas, and in 173 cases taxpayers were

convicted after trial, Acquittals and dismiss_

als totaled 83 and 168, respectively . Of the

1,202 taxpayers sentenced during 1975,

4B5 or 40 .3 percent received jail sentences

compared with 42 percent last year .

Cases Prosecuted

Tax fraud is not restricted to any particular

occupational or social group but reaches

across a wide spectrum of industries and

occupations . The following examples illustrate only a few successful prosecutions

resulting from the Service's vigorous and

balanced program of investigating tax

fraud :

A San Francisco Bay area resident was

found guilty of income tax evasion and

sentenced to five years in prison . The

investigation revealed that he had failed to

report $128.000 in Irish Sweepstakes winnings, which he claimed in Dublin and

deposited in a foreign bank account .

Two trials and eight guilty pleas resulted in

the conviction of 10 Seattle residents who

had filed false claims for refunds . The

charges emanated from the filing of 13

fraudulent income tax returns using false

Forms W-2 . The individuals received sentences totaling 14 years .

A Philadelphia auto dealer and former city

official was fined $7,500 and placed on

probation for five years for failing to report

money embezzled from his business . Additional tax and penalties proposed by the

IRS were about $679,000 .

A North Carolina school teacher was convicted of preparing false tax returns for

others . The judge ordered the school

teacher to deposit $5,000 in a trust fund to

assist his clients who were injured by his

fraudulent acts .

A Texas insurance agent was sentenced to

three years in prison for income tax evasion

*

He was convicted of failing to report

more than $130,000 received from a fraudulent scheme involving a lite insurance

company .

Three Wheeling, Illinois residents received

fines ranging from $3,000 to $25,000 and

up to four years in prison for tailing to

report income derived from payoffs extorted

from building contractors .

A Georgia veterinarian was sentenced to

three years in prison after pleading guilty to

income tax evasion for the year 1967 . The

net worth method was used to determine

his correct income for the years 1966

through 1969 . Additional civil tax and penalties exceeded $1 million .

s1ganized Crime and

ke Force Activitiles;

The IRS cooperates in the Federal government's fight against organized crime by

participating in the Federal Organized Crime

and Strike Forces Program . Located in 17

major cities, these units are headed by Strike

Force attorneys from the Justice Department .

The objective of this program is to coordinate

the combined forces of Federal law enforcement agencies against the criminal element

in our society . The IRS is responsible for ensuring that income from illegal activities is

correctly reported and taxed and for detecting criminal violations of the tax laws . During

1975, the IRS contributed 513 man-years of

direct investigative and examination time to

the Strike Force effort .

A total of 97 organized crime members and

their associates were convicted or pleaded

guilty to tax charges during the year and

650 prosecution cases were pending when

the year ended .

Since the inception of the organized crime

program in 1966, 539 organized crime

members and associates have been convicted or have pleaded guilty to various tax

charges.

The following are examples of Organized

Crime and Strike Force activities :

During 1975, probes were conducted in

many areas of illegal activities by the various Strike Forces to identify individuals

who may have violated the tax laws . One of

the most important areas in terms of total

monetary value involves the fencing of

stolen goods, ranging from small items,

such as jewelry and gold, to large, bulky oil

drilling equipment . Other areas of prime

concern to the Strike Forces have been

union racketeering and corruption and the

investment of income from illegal activities

in legitimate businesses and real estate

developments .

A major Atlanta racketeer was convicted

of tax evasion for the years 1967 through

1969 and was fined $15,000 and sentenced

to five years in prison .

In Los Angeles, an ex-IRS revenue agent

and his business associate, an organized

crime figure, were sentenced to four years

and one year, respectively, upon conviction

of income tax evasion for 1970 . Total civil

lax and penalties on the unreported income

from the sale of bootleg eight-track tapes

was nearly $1 .4 million .

33

A Seattle racketeer was sentenced to six

months in prison for violations of the tax

laws covering withheld income and social

security taxes. His defense that he w*as

merely making an "unauthorized loan" from

the government was not found acceptable

by the trial judge .

Narcotics Traffickers

Since 1971, the IRS has cooperated with

other Federal, state and local law enforcement agencies in a concerted effort against

narcotics traffickers . The IRS contribution to

this effort involves the identification and

investigation of middle and upper echelon

traffickers and financiers who violate the

Internal Revenue laws .

Consistent with the IRS policy to achieve

maximum compliance with the revenue

laws, the Service will continue to identify

and investigate significant tax violations by

traffickers and financiers.

During 1975, the IRS completed 398 criminal tax investigations, obtained 81 indictments and achieved 83 convictions of

traffickers and financiers . The IRS collected

more than $3,8 million in narcotic trafficker

assessments during 1975 and had property

valued at $4 .5 million under levy and seizure

at the end of the year .

The following are examples of the.results of

IRS narcotics traffickers investigations :

A convicted Hawaiian crime figure received a 24-year sentence, the most severe

penalty thus far handed down by a Federal

court for tax evasion .

A Miami narcotics trafficker was convicted of tax evasion for the years 1969 and

1970 and was sentenced to 3 years in

prison . Additional tax and penalty figures

proposed by the IRS exceeded $38.000 .

A Los Angeles narcotics wholesaler received prison sentences of six years for tax

evasion and two years for his part in a

conspiracy to violate the tax law .
34

Executive Order Umlts Tax

Inforynation Disclosur

e

During 1975, attention was focused on the

disclosure of tax information . While regulations issued by the Treasury Department

and approved by the President pursuant to

section 6103 of the Internal Revenue Code

place strict limitations upon agency and

public access to tax return information,

there were no explicit legislative restrictions

upon disclosure to the White House . On

September 20, 1974, President Ford signed

an Executive Order setting forth legally

binding procedures whereby the President

must personally sign all requests for copies

or inspection of tax returns and must designate in writing the member of his staff who

is authorized to see specifically identified

returns on his behalf .

To insure that income tax return information

is not disclosed improperly, present law

provides for penalties of up to $1,000 or

imprisonment for one year, or both, for any

unauthorized disclosures . The Service is

constantly on guard against any unauthorized use of tax return information .

Chapter 4

Technical Activitie

s

Tax Rulings

and Technical Advice

Internal Revenue Bulletin

Accounting Methods Rulings
36

Tax Rulings

an d

Technical

Advice

The Service's tax ruling program consists of

letter rulings and published Revenue Rulings.

A letter ruling is a written statement issued

to a taxpayer by the National Office interpreting and applying the tax laws to a

specific set of facts . Such a ruling provides

advice concerning the tax effects of a

proposed transaction so that the taxpayer

may structure the transaction to comply

with the tax laws, thus resolving issues in

advance and avoiding future controversy .

Letter rulings are not precedents and may

not be relied upon by other taxpayers .

A Revenue Ruling is an interpretation of th a

tax laws issued by the National Office and

published in the Internal Revenue Bulletin

for the information and guidance of taxpayers, practitioners and IRS personnel . Most

Revenue Rulings are based on letter rulings

which have the potential of setting precedents or have such broad applicability that

general guidance should be offered to

people in similar situations .

Technical advice is counsel or guidance as

to the interpretation and proper application

of the tax laws to a specific set of facts, It is

furnished by the National Office at the

request of a district office in connection

with the audit of a taxpayer's return or claim

for refund or credit . Frequently, the district

director's request is made in response to

the suggestion of the taxpayer that technical advice be sought,

Test Program for

Processing Ruling Requests

On July 1, 1974, the Service initiated a test

program in the Reorganization and Excise

Tax Branches, Office of the Assistant Commissioner (Technical), to change the processing of ruling requests . Under the test

program, tax law specialists would, within

seven work days after receipt of the request, contact the taxpayer or the taxpayer's representative to discuss informally

the procedural and substantive issues involved in the ruling request .

The test program, initially conducted for a

six-month period and later extended to

June 30, 1975, proved to be feasible in the

two branches and was very favorably received by taxpayers . A report urging continuation of the program was received from

the American Bar Association .

On April 7, 1975, the Service announced in

Rev. Proc . 75-23 that the test program had

been extended to June 30, 1976, and

expanded to include (with only a few exceptions) ruling requests received by all the

ruling branches in Technical . Under the

expanded test program, the taxpayer or the

representative will be contacted within fifteen work days after receipt of the ruling

request and informed of a tax law specialist's tentative conclusions concerning the

ruling request .

Requests for Tax Rulings and Technical Advice (Closings) 197S)

Subjec t

Tota l

Administrative Provisions

Changes in Accounting Methods

Changes in Accounting Periods

Earnings and Profits Determinations

Employment and Self-Employment Taxe s

Engineering Questions

Estate and Gift Taxe s

Excise Taxe s

Individual Income Tax Matters

Corporation Tax Matters

Taxpayers' Field

Total Requests Requests

24,236 23,596 64 0

42 30 1 2

4,987 4,987

9,880 9,880

719 71 9

556 490 66

240 163 77

506 429 7 7

310 229 81

2,691 2,574 11 7

4,305 4,095 210

internal

Revenue

Bulletin

Tax Credit for

Purchase of Residence

Under the Tax Reduction Act of 1975, new

Code Section 44 provides for a tax credit to

taxpayers purchasing a new residence under certain conditions . Since this provision

had no counterpart in previous tax law, the

IRS promptly issued a Technical Information

Release summarizing the provisions and

the Service's interpretation of Section 44 .

From April to June, the National Office

Technical organization received over 150

requests for written information in addition

to 10-30 telephone calls per day.

Sick Pay Exclusion Clarified

Prior to April 1974, the IRS took the position

that the sick pay exclusion under Section

105(d) of the Internal Revenue Code was

applicable to disability Pension payments

only until the employee reached optional

retirement age rather than mandatory retirement age . Optional retirement age was

deemed to be the earliest age indicated in

the pension plan at which the taxpayer

could retire without the am ployer's consent

and still receive retirement benefits based

on service up to retirement computed at the

full interest rate in the plan . After a number

of adverse court decisions, the IRS announced in Technical Information Release

1283 . on April 9, 1974, that taxpayers

retired on disability prior to the mandatory

retirement age could apply the sick pay

exclusion to their disability payments .

During 1975, the Service received over 150

requests for rulings and information on

specific plans that included the sick pay

exclusion . Tax Regulations implementing

the new procedures and superseding prior

regulations were published in the Federal

Register on April 14, 1975.

The weekly Internal Revenue Bulletin is the

authoritative publication of the Commissioner for announcing official rulings and

procedures of the Service and for publishing Treasury Decisions, Executive Orders,

tax conventions, legislation, court decisions,

and other items of general interest . Bulletin

contents of a permanent nature are consolidated semiannually into Cumulative Bulletins . Copies of the weekly and semiannual

issues are distributed within the Service

and are made available to the public by the

3 7

Superintendent of Documents, U .S, Government Printing Office, Washington, D .C .

20402, on a single copy or subscription

basis ,

During 1975, items in the Bulletin included

576 Revenue Rulings, 66 Revenue Procedures, 27 Public Laws relating to Internal

Revenue matters and 31 committee reports,

3 Executive Orders, 42 Treasury Decisions

containing new or amended regulations, 19

Delegation Orders . 3 Treasury Department

Orders, 9 court decisions, 33 Notices of

Suspension and Disbarment from Practice

before the Service . and 181 Announcements of general interest.

The Bulletin Index-Digest System, revised

as of December 31, 1974, provides a rapid

and comprehensive means of researching

material published in the Internal Revenue

Bulletin after 1952. The major part of the

System consists of digests of BdIletin items

arranged under headings that facilitate a

topical approach to a search for items on a

specific issue, With the aid of finding lists,

the researcher can locate items by Code

section or number . *

Revenue Rulings and Revenue

Procedures Published in 1975

Type Number

Administrative 23

Employment Taxes 32

Estate and Gift Taxes 3 0

Excise Taxes 70

Exempt Organizations

Income Taxes

50

403

Employee Plans 28

Tax Conventions 6

Total ZE

I
3

8

Accounting

Methods

Rulings

During 1975, a sudden increase was experienced in requests for rulings regarding

accounting methods. The increase occurred principally in two areas .

First, many taxpayers requested permission

to adopt or readopt the last-in first-out

(LIFO) method of inventorying their goods .

The LIFO method softens the impact of

inflationary trends on prices paid for goods

and, in effect, reduces or defers taxpayers'

current profits and taxes . The increase in

requests for permission to adopt the LIFO

method is expected to continue until the

present inflationary spiral levels off or reverses .

Second, there were increases in the number of requests by manufacturers to change

to the full absorption method for inventory

valuation . This activity was p6marily a result

of the promulgation in 1973 of section 1 .471-11 of the Income Tax Regulations,

which provided a transition period for manufacturers to change to the full absorption

method for inventory valuation .

Chapter5

Employee Plans and

Exempt Organizations

Employee Plans

Exempt Organizations

Actuarial Matters
40

Employee

Plans and

Exempt

Organization s

Employee

Plans

To administer the Employee Retirement Income Security Act of 1974 (ERISA), the IRS

established on December 2, 1974 an Office

of Employee Plans and Exempt Organizations (EP/EO) headed by an Assistant Commissioner, the first Created by statute . The

purpose of ERISA is not to raise revenue,

but rather to protect the retirement income

security of some 30 million American workers . It also required major changes in the

private pension field and had an impact

comparable to the initial Social Security Act

of 1935 . ERISA was the most significant

change in the Federal taxing provisions

since the Tax Reform Act of 1969 .

The new office is responsible for carrying

out regulatory responsibilities assigned to

the Service with respect to employee benefit plans as well as to tax exempt organizations . In the National Office, the new structure consists of Employee Plans, Exempt

Organizations, and Actuarial Divisions,

achieved by a transfer of functions from the

Audit and Technical organizations . EP/EO

field staff are located primarily in 7 regional

offices and 19 key districts, and local

service is provided in numerous other offices .

Regulations have been developed to administer employee plans in accordance with

the new law . Major emphasis has been

placed on those regulations most urgently

needed by taxpayers .

To insure that taxpayers receive consistent

information on rulings and are not required

to make duplicate reports, the IRS established liaison with the Department of Labor

and the Pension Benefit Guaranty Corporation through a policy committee, an ERISA

coordination board, and a joint interagency

regulations drafting group.

From September 2, 1974 to the end of FY

1975, 12 regulations, 10 revenue rulings, 7

revenue procedures, 6 delegation orders,

22 technical information releases, 12 forms,

6 news releases and 1 publication were

issued in the employee plans area . Fact

sheets on the most common questions and

answers were also developed for taxpayer

assistance personnel .

The Employee Retirement Income Security

Act requires the conformance of all new

pension benefit plans, approximately

500,000 existing corporate plans, and an

estimated 400,000 existing self-employed

plans.

In 1975, the Service devoted an average of

555 field professional positions to carrying

out its regulatory responsibility in the employee benefit plans area ,

This responsibility is met by issuing advance determination letters regarding the

qualification of pension, profit-sharing and

other employee benefit plans and by conducting an examination program to determine whether plans continue to quality in

operation and to verity the appropriateness

of deductions for plan contributions . The

number of determination letters issued with

respect to corporate pension and profitsharing plans during 1975 was 70,818, a

decrease of 17 .7 percent from 1974 . The

decrease is attributed to the passage of

ERISA and the fkt that the IRS was in the

process of developing regulations under

the new law .

Preparations have been made for a case

inventory control and management information reports system with computer terminals

in all key districts and certain associate

districts . This will enable IRS to control

applications for approval of'plans and plan

amendments .

Exempt During 1975, the Service received 42,411

Organizations applications and reapplications from organizations seeking a determination of their

tax exempt status or seeking a determination of the effect of organizational or operational change on their status . The Service

issued 34,203 determinations and ruling

letters . In addition, 368 technical advice

memoranda were issued . The Service devoted an averaqe of 495 field professional

positions to the examination of the returns

of 22,168 exempt organizations.

Also, 1 regulation, 50 revenue rulings, 5

delegation orders, 8 forms, 4 news releases

and 2 publications were issued in 1975.

Question and answer sheets were also

prepared for taxpayer service use on exempt organizations .

In 1975, the Service met its commitment to

the Congress to examine all private foundations within a 5-year audit cycle which

ended December 31, 1974 ,

A Taxpayer Compliance Measurement Program (TCMP) covering the examination of

private foundations . public charities And

social welfare organizations was initiated in

1975 . The program is designed to identify

patterns and characteristics of compliance

and noncompliance of the exempt organizations being studied .

The number of active entities recorded on

the Exempt Organizations Master File

(EOMF) increased from 673,000 in 1974 to

692,000 in 1975 .

As of July 1, 1975, the EOMF was redesigned to include additional data from returns to provide information to the Congress . the charitable community and the

Service .

A revised Cumulative Ust (Publication 78)

of charitable organizations described in

Section 170(c) of the Internal Revenue

Code was published in 1975 . This publication, now issued annually with Cumulative

Quarterly Supplements, identifies those organizations with outstanding ruling or determination letters holding that contributions to

them are deductible .

A proposed Revenue Procedure concerning

guidelines and recordkeeping requirements

for private schools was published in the

Federal Register for public comment . The

public responses have been evaluated and

will be incorporated into the final Revenue

Procedure, A Revenue Ruling concerning

the IRS position on church-related schools

practicing racial or ethnic discrimination

was also announced .

4 1

Three Revenue Rulings and a Revenue

Procedure were published covering the tax

exempt status of public interest law firms

and the acceptance of legal fees by such

firms .

Actuarial Matters

In 1975, the Service devoted 17 average

positions to reviewing actuarial determinations, interpreting and clarifying provisions

under ERISA, and overseeing the enrollment of actuaries to practice before the

Internal Revenue Service .

The Joint Board for the Enrollment of Actuaries developed final regulations for enrollment which provide for examinations of

applicants in all 58 Districts in a manner

similar to the examination for enrollment to

practice before the Internal Revenue Service . Enrollment on the basis of professional

standing and experience is also provided .

Publication 861, Annuity Factors for LumpSum Distribution, was issued in 1975 .

Revenue Rulings and Revenue

Procedures Published In 1975

Type Numbe r

Exempt Organizations 50

Employee Plans 28

Total 78

Requests for Tax Rulings and

Technical Advice (Closings), 1975

Taxpay- Field

eirs' Re- ReSubject Total quest quests

Total 6935 6024 91 1

Actuarial Matters 1359 1280 79

Exempt

Organizations 3762 3386 376

Employee Plans 1814 1358 456

i

I

I

_J
42

Chapter 6

International Programs

Tax

Administration

Abroad

Technical

Assistance

to Foreign

Countries

I

T"
44 4

5

Tax

Administration

Abroad

The Service maintains a system of permanent foreign posts to help coordinate its

domestic and foreign tax programs Revenue Service Representatives (RSRs) at

these stations are involved in compliance

and taxpayer assistance activities and

maintain cooperative contacts with foreign

tax agencies . Foreign operations of the IRS

are the responsibility of the Office of International Operations (010),

The five new 010 posts authorized in 1974

are now fully operational . They are located

in theU .S . embassies or consulates in the

following cities: Canberra, Australia; Caracas, Venezuela~ Johannesburg, South Africa ; Kuaia Lumpur, Malaysia and Teheran,

Iran, These posts reinforce those already

established in Bonn, London, Manila, Mexico City, Ottawa, Paris, Rome, Sao Paulo

and Tokyo . In addition to the new posts, the

staffs at several of the older locations were

increased . This expansion program should

significantly improve the Service's overseas

operation by permitting a more intensified

and efficient coverage of each post area .

Assistant Commissioner (Compliance)S . B . Wolfe

presents superior performance award to Linda

Harris for her work with the overseas audit

To increase the foreign language proficiency of RSRs, training facilities of the

State Department are used . In addition, the

010 maintains its own language laboratory,

which in 1975 offered courses in conversational French and German. An expanded

program is under development to provide

in-housing training in Spanish and Italian as

well as for personnel who are sent abroad on

temporary assignments .

010 conducted its annual Overseas Taxpayer Assistance Program in 1975 for the

twenty-second consecutive year. A taxpayer service representative (TSR) was

detailed to each of the 010 foreign offices

to counsel taxpayers during the extended

overseas filing period of January through

June . Also, other "circuit riding" TSRs covered an additional 105 cities in 59 countries .

program during an assignment to the IRS foreign

office in Rome, Italy,

Together with other IRS personnel, these

specialty trained representatives gave information and guidance to approximately

93,000 taxpayers overseas during the first

six months of 1975, an all-time record in

number of taxpayers assisted . In addition,

several days of tax instruction were provided to members of the Armed Services at

foreign bases, who were then able to help

thousands of overseas military personnel

prepare their returns ,

Compliance Overseas

In 1975, the Service continued its overseas

audit program to encourage a level of

compliance among Americans abroad

which will compare more favorably with the

high degree of voluntary compliance in the

United States. Under this program, revenue agents and tax auditors are detailed

on six-month tours to the Service's foreign

offices where they conduct both field and

office audits, working together with the

RSRs stationed overseas .

For the second consecutive year, revenue

officers were also detailed to several forpign areas to collect tax payments and

secure returns from delinquent taxpayers,

The majority of 010 audits and collections

still take place within the United States . An

important phase of this activity is designed

to ensure tax compliance by foreign corporations doing business in this country . A

growing counterpart program is represented by "support" audits, through which

010 renders assistance to district offices

by examining foreign subsidiaries ofU .S .

corporations .

Resolution of Tax

Jurisdiction Problems

In 1972, the Congress enacted legislation

providing for jurisdictional coordination between the U .S . and the Territory of Guam

on individual income tax payments . Taxpayers may now file and pay tax to only one of

the two jurisdictions, depending on their

place of residence at the end of the taxable

year . The IRS and the Guam territorial

government have cooperated closely in

determining if taxpayers have filed erroneously under the new rules, and in resolving accounts between the two jurisdictions .

An active on-site audit program was con .

ducted to determine the extent of compliance in the employment tax area by employers in all U .S . possessions . This pro- Q

ram has resulted in increased taxpayer

awareness of the filing requirements and

improved compliance .

Competent Authority Cases

The interactions ofU .S . and foreign tax

systems inevitably generate such problems

as double taxation . To provide relief to

taxpayers in these situations, tax treaties

include procedures for settlement of international tax issues by "competent authorities" of the signatory countries . During

recent years, there has been a continuing

increase in taxpayer requests for competent

authority assistance, TheU .S . competent

authority, the Assistant Commissioner

(Compliance), and his foreign counterparts

have successfully resolved most of the

problems which prompted these requests,

In the past five years, U,S. and foreign

adjustments to taxpayer income to provide

relief through settlement procedures have

totaled more than $110 million . Also, the

time required to process most of these

requests has been reduced by appr

mately 50 pi~rcent through improved case ox'

management techniques .

Exchange of Information

Effective administration of

U .S . tax laws as

to multinational corporations and other

U,S . taxpayers engaged in international

operations has required increased cooperation under our tax treaties . The IRS has

continued to fulfill its reciprocal obligations

specified in the treaties and has encouraged the appropriate use of the provisions

for mutual exchange of information . I 11 F.

11
4 6

Technical

Assistance

to Foreign

Countries

The IRS Tax Administration Advisory Services Division assigns tax advisors upon

request by developing countries to help

them modernize their tax administration

systems . During 1975 . 35 IRS employees

performed such overseas assignments .

Full-time advisors were assigned to eight

countries-Bolivia, Columbia, Guatemala,

Paraguay, Uruguay . Trinidad & Tobago, Viet

Nam and Liberia. Short-term assistance in

specific functions was provided to the Governments of Guyana, El Salvador and Ethiopia, while broad tax administration surveys

were conducted for the Governments of

Egypt and Portugal .

Tax officials from foreign countries visit IRS

facilities for observation, to discuss problems in tax administration and for training .

During 1975, 284 officials from 72 countries

made such visits . Nearly 4,000 officials from

118 countries have visited the IRS during

the past 13 years .

The Commissioner of Internal Revenue is a

member of the Inter-American Center of Tax

Administrators (CIAT), which has representation from 26 countries of the Western

Hemisphere . The purpose of CAT is to

improve tax administration within the Western Hemisphere through the cooperative

efforts of member countries . The Commissioner led the U .S. delegation to the Ninth

annual CAT Assembly in Ottawa, Canada

in June 1975 .

Chapter 7

Legal Activities

Responsibilities

of,the Chief Counsel

Litigation

Technical

Administration

1,

I "

The Manhattan District hosts many foreign

visitors each year . During October 1974, four

members of Great Britain's Board of Inland

Revenue visited the district to discuss the use of

automatic data processing in audit and collection

functions, From left . the photo shows Ralph

Alexander Hamilton, Inspector of Taxes, Arthur

Robert Brunscon, Senior Inspector of Taxes .

William Scotland Rankin, Principal Inspector of

Taxes, and Ian Douglas Thomson, Senior

Principal Inspector of Taxes, being greeted by

Manhattan District Director Philip E . Coates and

Assistant District Director George S . Alberts .

i
48

4 9

Responsibilities

of'the

Chief Counsel

The Chief Counsel is the chief legal officer

for the Internal Revenue Service and is a

member of the Commissioner's executive

staff, He advises the Commissioner on all

matters pertaining to the administration and

enforcement of the internal revenue laws

and related statutes . as well as on all nontax legal questions .

His advisory responsibilities are divided into

two major areas : litigation and technical .

Organization

The Office of the Chief Counsel is organized as follows;

Chief Counsel

Deputy Chief Counse l

Associate

Chief Counsel

(Litigation )

H

H

Tax Court

Litigation

Division

Criminal

Tax

Divisio n

Refund

Litigation

Division

D!s~lpsure ,V, .".r,

14~1

L ga I Services have field counterparts, Refund Litigation, and Administrative Services do not,

I

Assistant

Chief Counse l

General

Litigation

Division

I

Associate

Chief Counsel

(Technical)

H

Interpretative

Divisio n

_7GLeDiga n e,11 vgis Or. Is SSe, n 'loss

ices

Division

~ Admirrifiv .vsp e

S

Services

Division'sts

Regional Counsel

North-Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

Tax Court, General Litigation, Criminal Tax, and General

R gul.7 LLegislation an d

.v

.. 0

egulati .ns E _ Divisio tnffo

Disclosure Interpretative Le islation and Regulations.

Litigation Both the National Office and the field offices are actively involved in litigation . Tax

Court, General Litigation, Criminal Tax, and

General Legal Services work is handled in

Tax Court Cases Received

1971-1975

11,20 6

the field offices subject to the overall direc- Numbers above bars

tion of the National Office . Refund Litigation represent total Tax Court

and Disclosure activities are centralized in cases . ,

the National Office .

Tax Court

One of the major responsibilities of the

Office of Chief Counsel is the representation of the Commissioner of Internal Revenue in all actions brought in the United

States Tax Court . One of the most significant events affecting Tax Court litigation

during 1975 was the enactment of the

Employee Retirement Income Security Act

of 1974, which confers jurisdiction upon the

Tax Court as of September 2, 1975 to

render declaratory judgments with respect

to qualification of retirement plans, On June

18 . 1975, the Tax Court issued its rules

applicable to actions for declaratory judg- .

ments, effective September 2, 1975:

Refund Litigatio n

The Refund Litigation Division performs all

necessary legal services on behalf of the

Internal Revenue Service in connection with

suits instituted in the United States District

Courts and the Court of Claims by taxpayers for refunds of taxes, The Division determines and coordinates the legal position of

the Service in these suits and incorporates

such determinations in recommendations to

the Department of Justice, which handles

the trials of such cases .

1971 1972 1973 1974 197 5

One of the most significant matters handled Refund Litigation Cases Receive d

by the Refund Litigation Division during

1975 involved motion picture investment

credit . The principal issue in this area

concerns the validity of Trees, Reg . § 1 .48-

1(f), which provides that motion picture

production costs are not eligible for the

investment credit . While pending cases involve only the motion picture and television

industries, the issue could have wide significance in the recording, book publishing

and similar industries .

1971-1975

Il

I
so

5 1

Tax In Litigation-Tax Court

(In Thousands of Dollars)

status

Number

Of

All Tax Court Cases

Taxes and Penalties Over-payments

Cases In Dispute

Pending July 1 ,

1974 13,7391 $2,144,978,

Received 11,206 667,748

8,568 448,104

ol=ory"R.l.

Pending June 30 ,

1975 16,377 2,364,623

Small Tax Cases

Pending July1 ,

1974 1,580, 949 ,

Received 3,203 1,930

Dis ad of 2,594 1,471 ;Feocsovery Rat e

Pending June 30 ,

1975 2,189 1,407 ; includes both realle. as . ond "t o

of toutposels include cases trim, settedi and dismissed . some

he denummoo amounts are for cows which were subseQwrffly appealed,

General Litigation

National Office and field office attorneys in

the General Litigation area furnish legal

advice to the Internal Revenue Service in

connection with the assessment and collection of federal taxes and assist the Department of Justice in the prosecution and

defense of suits to collect taxes, suits to

recover erroneous refunds, proceedings

under the Bankruptcy Act and other i ,nsolvencies, civil enforcement of summonses,

and injunction and declaratory judgment

actions . During 1975 the number of Bankruptcy Act proceedings handled by General

Litigation attorneys, especially Arrangements under Chapter A of the Act, increased substantially . A major issue .in the General Litigation area

during 1975 concerned the use of "John

Doe" summonses by the Service in tax

investigations . In United States v. Bisceglia,

420U.S . 141 (1975), the Supreme Court

Determined Claimed Determine

d

$284,516

31,709

$146,589 14,905 $5,619

32 .7% 37.7%

301,320

42

37

$793 42 $17

53 .9% 40 .5

%

38

LA-un, Drimneshad expressed as percentage of Amount

A Md .1 Claimed . Therse amounts do .1 Include &I.spoessel

assessurneres wNch am agreed to by the taxpayer at lanct or

Appellee, oinnhh.h. .a. in he.. . W a Mimed thim1palrehIml. IN

RIC110 dhsd,y Rate shown 0010 represent the portion of Me amixon

;q which shis .funded

1. flue..pay .,.

R.,hinad

held that the Service has authority to issue a "Jo hn Doe" summons to compel production of a bank's records relating to transactions with unknown persons which suggest

the possibility of liability for unpaid taxes . In

United States v . Humble Oil& Refining Co .,

421U .S . 943 (1975), which involved enforcement of a summons to compel a

company to turn over certain data concerning leases with unidentified lessors, the

Court vacated the judgment and remanded

the case to the Fifth Circuit for further

consideration in light of its decision in

Biscegi The Fifth Circuit on remand determined that the facts in this case did not

warrant enforcement of a "John Doe" summons . United States v . Humble Oil & Refining' Co ., 518 F .2d 747 (5th Cit . 1975) . The

Service has publicly stated that the authority to issue "John Doe" summonses will be

used oAly in limited and justifiable circumstances .

Tax In Litigirtion-Refund Suits

(In Thousands of Dollars)

Status

Pending July 1, 1974

Received

Disposed of

% Not Refunded

Pending June 30, 1975

Status

Pending July 1, 1974

Received

Disposed of

% Not Refunded

Pending June 30,1975

Status

Pending July 1, 1974

Received

Disposed of2

% Not Refunded

Pending June 30, 1975

Cases In Courts of Appeal and the Supreme Court are

includ under led coluimns represx= the court III o:pin .

Dep'sels include cases thed, soft and dismiss

District Courts

Number Amount Amount

of In not

Cases DisputeI Refunded

4

2,475 $379.74 1

889 270,095

784 81,013 $43,157

53.3%

2,580 568,823

Court of Claims

Number Amount Amount

Of In not

Cases DisputeI Refunded

384 $321,828 ,

129 70,451

103 .41,552 $31,536 75.9%

410 350,727

Total

Number Amount Amount

of In not

Cases DisputeI Refunded4

2,859 $701,569 1

1,018 340,546

887 122,565 $74,693

60.9%

2,990 919.550

Amount in Dispute includes claims tot refund of taxes,

beholeen, and easswood minimal. - Thai portion d the Amount in Dispute which was net mtudoo to pasr.
52

Trial Court Case Record

(Opinions Rendered-Refund Litigation and Tax Court Cases)

Court of District

Claims Courts Small Ta

-

Cases x

Tax Court I

Other Total

Action 1974 1975 2 1974 1975 3 1`974 1975 4 1974 1975 5 1974 1975

Decided in Is— ol

G.amhwht-N.h,toa, 38 10 217 217 170 192 234 255 404 447

80 .9% 52.6% 601% 66 .2% 54 .5% 61 .7% 51 .4% 547% 52,7% 57 .5%

Nool in ta- of

T.MWI-N-oa,

-Percent

5 4 95 82 23 35 61 49 N 84

106% 21 .1% 27 .1% 25,0% 7 .4% 11 .3% 114% 105% 10,9% 10,8%

DeCided) carnally

for the Tagmgr

anc Patriot Y or the

Govern,ent-Number 4 5 45 29 119 U 160 162 279 246

-P.,cent 8.5% 263% 12.6% 8.8% 38.1% 27.0% 352% 34.0% 36.4% 31 .7%

Total Opinions

47 19 351 328 312 311 455 466 767 777

H.IM .d case. ..reflected as we opinion. 1 466 To, Courn Opinions inn,ohnng 661 cases other than Steel

11 Oep"'lls 8 hic a"InColf ahI 01 , C..hnor rnholving a 'not 23 cases . To, cases.

3 4vhV,9,,1 cases . - In cows on ~ich decisions ir,one entered during the fiscal

311 To, C~ Opinions -Mhng

328

To, cases. year.

Appellate Court Case Record

(Decisions-Refund Litigation and Tax Court Cases)

Partly for

Forthe Against the and Partly

Government Government Against the

Court Total Government

No. % No. % No. %

Courts of Appeals 245 179 73.1% 45 18.4% 21 8 .6 %

Orpinally tried inax-Court 1331 103 77.4% 17 12 .8% 13 9.8 %

District Courts 112 ~ 76 67.9% 28 25.0% 8 7.1 %

Supreme Court

I Of Inis c ... a mg .11y tried in the To, court, the Cwna of

AMeaJs rendered 1 Minims 11 234 dockets . including 168

dockets for the q.-Ion. 45 ofobay for the governnnent, and

21 adainst the cownrinnent.

- Of the coses originally tried in proton Cotins. the Ccsrs of

Appears rendered 112 Minims on 122 detces. uncWng a2

dock;~Ior the 9 parnially for the go-. andl 31 . tft

Receipt and Disposal of General Utigation CasesNational and Regiona l

Status Court Non-Court Total

Pending July 1, 1974 7,323 1,618 8,94 1

Received 9,867 8,283 18,150

Disposed of 8,296 7,990 16,286

Pending June 30, 1975 8,894 1,911 10,805

53

lGeneral Litigatlo n and Disclosure Cases Received

971-1975

I

Types of Cases-Regions: 1971 1972 1973 1974 1975

Bankruptcies and Receiverships 1,107 1 .217 1,153 i,iQ 1 .25 4

Wage Earners' Plans (CH . XIII )

Arrangements (CH. XI )

Reorganizations & Real Property

Arrangements (CH . X and XII)

58 61 81 102 62

1,855 1,492 1,526 2,273 3,440

271 203 184 348 626

it

Miscellaneous Insolvencies 73 199 140 100 102

Decedents' Estates 438 424 423 413 374

Suits to Collect Taxes 604 624 608 623 565

section 241 0

(28 U.S .C . 241 0) Interipteaders 174 206 226 242 222

Others 92 159 235 162 160

Injunctions 131 152 230 272 227

Disclosure and Testimony 297 . 411 449 481 424

Summons Cases 1 083 1,307 1,371 1,663 1,877

Erroneous Refund Suits 50 28 32 31 42

Miscellaneous Court Cases 527 513 593 530 564

Advisory Opinions 3,746 4,025 4,556 4,310 4.860

Discharges of Property from Lien 2,094 2 .311 2,429 2 .269 2,701

Totak All Regions 12,600 13,332 14.236 14,931 17,500

National Office : 1971 1972 1973 1974 1975

Appeals 136 176 216 184 197

A&isory 162 142 132 140 298

International Operations 118 113 88 165 126

Disclosure and Testimony 29 54 212 158 1 54 2

Other Centralized Cases 2 19 40 22 26 29

Total National Office . 464 525 670 673 650

Total All Regions and

National Office 13,064 13.857 14,906 15,604 18,15 0

No, handled in the DoclOsuh, D,aro n

Incildes Ra,nood Reorganizations and Act- to, 1,1-Imns

and/or Oaclarao,~ Relief.

I'
54

Disclosure

Attorneys in the Disclosure Division handle

matters arising under the Freedom of Information Act, as well as requests for disclosure of documents and testimony in both

tax and non-tax litigation . The Division is

also responsible for providing legal advice

to the Service concerning implementation of

the Privacy Act of 1974, effective September

27, 1975 .

Specifically, the Division is responsible for

planning, directing and coordinating for the

Internal Revenue Service all matters relating

to requests for testimony and production of

Internal Revenue documents, records or

information under the Federal Rules of Civil

or Criminal Procedure, the Tax Court Rules,

the Court of Claims Rules and various State

court rules . This Division works closely with

the Disclosure Staff of the Internal Revenue

Service . It also coordinates with the Department of Justice all litigation arising under

the Freedom of Information Act, including

recommendations about defense or settlement of suits and appeals of adverse

decisions .

During 1975, the Division was extensively involved in the vital question of the publication

of private letter rulings and technical advice

memoranda .

Tax Analysts and Advocates filed suit in April

1975 in the District Court for the District of

Columbia seeking all letter rulings issued

since the effective date of the Freedom of

Disclosure Division

Fiscal Year 1975

Types of Cases

FOIA & Miscellaneous Litigatio

n

FOIA Opinions

Disclosure Opinions

Discovery Opinions

Miscellaneous Opinion

s

FOIA Request

s

FOIA Appeal

s

Disclosure Litigation

Disclosure Coordination (excluding

Discovery)

Division Totals

Information Act, subject only to deletions of

trade secrets, confidential commercial or financial information, or clearly unwarranted

invasions of privacy . Persons who have received unpublished letter rulings were ad.

vised in a news release issued by the Service

that the above action had been commenced

and they could take whatever action or make

whatever comment they felt appropriate . Earlier, the D .C . Circuit held in Tax Analysis and

Advocates v. Intemal Revenue Service, 505 F .2d 350 (D.C. Cir . 1974), that the Service

had to disclose certain requested letter rulings under the Freedom of Information Act,

but did not have to disclose technical advice

memoranda, In Fruehauf Corporation v. Internal Revenue Service, 522 F .2d 284 (6th

Cir. 1975), the Sixth Circuit determined that

private excise tax rulings-letters were subject

to disclosure, and technical advice

memoranda as a category are not covered

by Code § 6103 as tax return information. A

petition for rehearing on this latter point was

denied,A petition for certiorari was filed on

November 6, 1975 . The Service's position

remains that technical advice memoranda

are tax return information not subject to disclosure under the Freedom of Information

Act.

In December 1974, the Commissioner announced a notice of proposed rule making

which would authorize the prospective disclosure of future rulings and determination

letters issued by the Internal Revenue Service . A public hearing on the propos6d

provision was held in March 1975 .

Pending Pending

7-1-74 Received Disposed 6-30-7

5

12 26 9 2

9

58 '98 66 9

0

37 200 152 8

5

3 20 12

1 1

23 14 23 1

6

35 21 1

4

118 59 59

1 7 3

5

6 32 22 1 6

140 552 367 325

Criminal Tax Criminal Tax Cases Received

National Office and field office attorneys in 1971-197

5

the Criminal Tax area handle all criminal tax

legal matters for the Internal Revenue Service, coordinate criminal tax prosecutions

with the Department of Justice . assist the

Tax Court and Refund Litigation Divisions in

coordinating the application of the civil

fraud penalties, and coordinate disclosure

matters in cases where criminal action is

anticipated or has been undertaken .

During 1975, Criminal Tax attorneys furnished an increasing amount of legal advice to criminal investigators in the Internal

Revenue Service's Intelligence Division during the inve i s tigative stage of criminal tax

cases . In addition, decentralization of criminal tax work to regional and branch offices

resulted in a steady increase in pre-referral

assistance to the Intelligence Division, and

resulted in a more efficient use of manpower in criminal tax investigations .

Receipt and Disposal of Criminal Tax Cases

1971-1975

1972 1973 1974

2,620

Status 1971 1972 1973 1974 1975

Pending Beginning of Fly 2,206 2,467 2,762 3,597 3,895

Received, Total1 .313 1,680 2,385 2,413 2,62

0

With Recommendation for Prosecution 1,2041 .523 2,304 2,304 2,44

0

With Requests for Opinion, Etc . 109 157 81 109 18

0

Disposed of. Total 1,052 1,385 1 .550 2,115 2,15

6

Prosecution not Warranted 79 94 104 181 20

5

Dept . of Justice Declined 48 57 72 133, 1~6

Prosecutions

Opinions Delivered 46 58 4662

Other Closings

759 1,009 1,077 1,521 1 1,397

94

120 167 251 218, 284

Pending end of F/Y 2,467 2,762 3,597 3.895 4,35

9

'Revaed

NOTE: Sonne cams nclude mom than ons taxpaye,

2,385, 2,413

rl~~

55 I if t WIJ
56

Results of Criminal Action In Tax Fraud Cases

1971-1975

Number of Defendants

Action 1971 1972 1973 1974 1975

Plea of guilty or

nolo contendere

Convicted after trial

Acquitted

Nol-prossed or dismissed

Total disposals

Indictments& Informations

General Legal Services

The General Legal Services Division was

established on July 21, 1974 to handle the

increasing volume of legal matters arising in

the non-tax legal area . These matters were

formerly handled by the General Legal

Branch of the Operations and Planning

Division, which was abolished on the same

date.

Attorneys in the General Legal Services

function in the National Office and the field

offices represent the Service in labor cases,

including representation hearings, impasse

proceedings, unfair labor practices, and

arbitration hearings, and serve as counsel

to and a member of management teams

negotiating individual and multi-unit labor

agreements . In addition, the attorneys rep

-resent the Service in adverse action and

discrimination proceedings, represent the

Director of Practice, Office of the Secretary

of the Treasury, in disciplinary actions

brought against tax practitioners, and provide on-going advice to the Service conberning government contracts, tort claims,

forfeitures, Inspection Service matters, and

other areas not directly related to Federal

tax matters . The most significant event

affecting the General Legal Services function during 1975 was the decentralization of

the function, so that advice in non-tax legal

areas will be readily available to the Service

both in the National Office and in the field

offices .

645 733 914 1,062 1,046

142 113 190 191 173

57 40 55 97 153

153 151 112 115 168

997 1,037 1,271 1,465 1,470

956 1,085 1,186 1,441 1,49

5

General Legal Cases Received

1971-1975

1971 1972 1973 1974 1975

Technical The two technical divisions of the Office of

Chief Counsel-interpretative and Legislation and Reguiations-are located in the

National Office .

Interpretative

The Interpretative Division provides legal

assistance to the Office of Assistant Commissioner (Technical) and the Office of

Assistant Commissioner (Employee Plans

and Exempt Organizations) in the issuance

of letter rulings, technical advice, revenue

rulings and revenue procedures . The Division also provides legal assistance to other

Divisions in the Chief Counsel's Office in

determining litigating positions and in coordinating the litigating positions with the ruling

positions of the Service . The Interpretative

Division was reorganized in 1975 by the creation of an additional Assistant Director, who

will be responsible for the general supervision of the legal work received by the Division

concerning employee plans or exempt

organizations ,

Interpretative Division Cases Received

1971-1975 -

Type of Case 197

1

Revenue Rulings 30

5

Letter Rulings

59

Technical Advice

95

Other Advice 22

0

Total 67

9

Legislation and Regulations

Division Cases Received

1971-1975

Type of Case 197

1

Legislation 2

4

Regulations

99

Miscellaneous 2

2

Total 145

57

Legislation and Regulations

The Legislation and Regulations Division

represents the Commissioner and the Service in tax legislative matters . Division attorneys also provide the Treasury Department's Assistant Secretary for Tax Policy

with technical assistance and expertise in

the development and drafting of internal

revenue legislation and furnish assistance

to Congressional committees in the drafting

of committee reports on tax legislation,

Attorneys in the Legislation and Regulations

Division are responsible'for drafting proposed regulations, drafting Executive Orders, and for representing the Service in

negotiating and drafting tax treaties with

foreign governments. Working closely with

Service officials, attorneys in this Division

prepare and review tax forms and instructions, hold hearings on proposed regulations, evaluate suggestions by Service personnel for regulatory changes, and review

publications issued for the information and

guidance of taxpayers and Service officials .

1972 1973 1974 197

5

512 511 471 44

3

89 107 124 11

7

114 117 90 8

0

173 185 158 21

2

sea 920 843 832

1972 1973 1974 1975

76 46 77 8

5

110 90 56 171

19 38 433

3

205 174 176 289
5

8

Administration

During 1975, The Division established over

50 regulation projects to implement the

Employee Retirement Income Security Act of

1974 (P .L . 93-406), approved Sept. 2. 1974 . A substantial number of these projects were

published either as proposed or temporary

regulations during this past year, including

regulations dealing with specific problem

areas under the new minimum participation,

vesting, and funding standards of Code

§§ 410, 41 1, and 412 applicable to qualified

plans; individual retirement accounts, annuities, and bonds ; lump-sum treatment of

distributions from qualified plans ; "H .R . 10"

plans covering self-employed individuals;

and declaratory judgment procedures established for qualified plans under Code § 7476 .

The Administrative Services Division is responsible for the general supervision of all

matters relating to administration and management in the Office of Chief Counsel. The

Division is also responsible for the attorney

recruitment program of the office .

Under the aegis of the Division, an Equal

Employment Opportunity Advisory Committee, composed of representatives from

each division in the National Office, assists

in the administration of the Chief Counsel's

Equal Employment Opportunity Program .

The Office has made substantial progress

in achieving its stated objectives and goals

under the Affirmative Action Plan during this

past year . In addition, the Federal Women's

Program Advisory Committee participated

with the Commissioner's committees in the

observance of International Women's Year

with a series of monthly programs on new

legislation and legal rights of particular

concern to women .

During FY 1975, the Administrative Services

Division completed testing a computerized

legal research system, Technical Reference

Information System, and is making plans for

the installation of the system .

Chapter8

Planning and Research

Planning Activities

Research and Testing

Legislative Activities

Federal-State Cooperation

Statistical Activities If I I
6 0

Planning

Activities

Planning activities of the Service during

1975 concentrated on the design and testing of improved automation systems, analysis of pending legislation, and statistical

compilation and projection of tax return

data . Long-range planning of workloads

and resources and measurement of progress in meeting program objectives continued as central features of planning activities .

Tax Administration System

Plans for a redesigned IRS data processing

framework-the Tax Administration

System-were completed by the Tax Systems Redesign Division and, after pending

Congressional approval, a solicitation document will be released to equipment manufacturers . The redesigned system was developed to improve service to the public, including the processing of tax returns and the

retrieval of information related to those returns, to provide increased capability for

compliance and enforcement programs, and

to enable the Service to accommodate

changes effectively and overcome the inef .-

ficiencies of the old system .

To accomplish the Tax Administration System

objectives, the taxpayer account files at the

National Computer Center in Martinsburg,

West Virginia. will be decentralized to the ten

IRS service centers ; the National Computer

Center, in turn, will assume the new role of

controlling activities between the service centers and maintaining a directory of service

center records so that an account is not kept

on file at more than one service center.

Implementation of the redesign plans will be

of such magnitude that it will take place in

phases . The major phase, planned to begin

in the initial service center in late 1979 and to

be implemented nationwide over the next

year, will consist of converting the individual

master file accounts to the Tax Administration

System . All phases are expected to be operational in all service centers for the 1982 filing

season .

Optical Character Recognition

Recent technological advances in Optical

Character Recognition (OCR) development

indicate that OCR will probably be more

economical than manual transcription, The

Service plans to test this hypothesis in two

areas : (1) converting to magnetic tape the

data reported by taxpayers on information

returns such as payments of wages, dividends and interest, or adjustments to income, and (2) conversion of data recorded

on Federal Tax Deposit forms (FrD's), and

other forms with print characteristics controlled by Service preparation, such as

internal management documents, turn

around documents, management information data, and others.

Research Automatic Document Numbering

and The IRS annually processes millions of

Testing paper documents, many of which are manually numbered to facilitate control . We now

plan to conduct a test of Automatic Document Numbering machines in one service

center . We expect these machines to be

capable of automatically feeding, numbering, and sequentially stacking tax returns as

received from taxpayers, therefore having the

potential for eliminating current manual numbering activity and expediting the flow of returns processing . Subsequent tests will determine the feasibility of computer-controlled

numbering .

Remittance Processing

System (RPS)

Successful tests were made with a prototype computerized system to expedite

clearance and deposit of tax remittances .

Combined remittance data input, numbering and preparation of accounting documents are included in a single operation.

The RPS will reduce processing co~ts,

accelerate remittance posting to account

status and tax data bases, and provide a

"fact of filing" indicator for account status

operations .

Technical Reference Information

Testing was successfully completed an a

Technical Reference Information (TRI) system. Under the control of a large scale

computer, the TRI applies computer techniques to help resolve legal research problems of the IRS. Researchers query the TRI

system, which contains the current Internal

Revenue Code and Regulations, Revenue

Rulings since 1954 and selected tax cases

from the various courts, via interactive video

terminals for materiaJ relevant to various tax

issues . Fifteen video terminals are currently

installed in large IRS offices and we plan

gradual expansion to Otheroffices .

Statistical Sampling

A system is being developed to provide

revenue agents with computer-generated

sampling plans . This will reduce the amount

of time needed to complete many large

corporate examinations because only a

fraction of the voluminous records which

previously would receive individual scrutiny will now require such action . Instead, a

probability sample of these records will be

selected through the use of programmed

random number generators, The results of

these sample examinations will be evaluated in terms of established statistical principles .

Restructure of the Planning

and Research Activity

Recognition of the necessity for a very

close relationship between research efforts

and the analysis of operations resulted in

the restructure of the Office of Planning and

Research . All Servicewide research and

operations analysis functions were assigned

to a new Research and Operations Analysis

Division . Since applications of automated

systems are closely related to these efforts,

the functions of the former Systems Development Division were also assigned to the

new Division. Another facet of the restructure was organizational identification of the

increasing responsibilities associated with

drafting of legislation related to the administration of the Internal Revenue Code . This

was accomplished by establishment of the

Legislative Analysis Division .

61

I

I

I

4i,
62 1111

63 11

Legislative Pension Reform

Activities Landmark legislation on pension reform, the

Employee Retirement Income Security Act

of 1974, was enacted during the second

session of the 93rd Congress . Under the

Act, the Service established an Office of

Employee Plans and Exempt Organizations

(EP/EO) with national and field office functions under an Assistant Commissioner .

"

See Chapter 5, page 40, for EP/EO activities)

Tax Reduction Act

The Tax Reduction Act of 1975 was enacted during the early part of the 94th

Congress and required rapid response from

the Service in implementation of a program

to compute and issue rebates, revision of

withholding tax tables, distribution of a new

Circular E, and dissemination of information

on other features of the law, Provisions of

the Act made it necessary to revise a large

number of taxpayer publications, tax regulations, returns, transcription instructions,

and computer programs .

Freedom of Information Act

Amendments and Rights to

Privacy

Significant non-tax legislation affecting the

IRS included the Freedom of Information

Act Amendments and the Privacy Act of

1974. The FOI amendments impose strict

time limitations within which an agency

must act on information requests, and restrict the information which may be withheld . The Privacy Act imposes conditions

under which disclosures may be made,

establishes notice and recordkeeping requirements relating to disclosures, establishes procedures by which an individual

may inspect and request amendment of

records pertaining to himself, and provides

civil remedies and criminal penalties for

violations,

Tax Reform

During the 93rd Congress, extensive hearings were conducted by the House Ways

and Means Committee on a proposed Tax

Reform Act of 1974 . The Committee

reached tentative decisions on proposals

which would have resulted in a large-scale

revision of the Code, but a bill was not

reported out . The IRS maintained close

liaison with the tax writing committees of the

Congress and assisted the Office of the

Secretary in preparing a number of legislative proposals for tax simplification and

reduction of administrative problems in enforcing current tax laws .

Confidentiality of Tax Return s

Numerous bills were introduced in the 93rd

and 94th Congresses which would restrict

the disclosure of tax returns and tax return

information permitted under the Internal

Revenue Code. The main thrust of these

bills was to prescribe by statute the persons to whom and the purpose for which

disclosure of such information may be

made and to establish tighter rules and

safeguards to insure the confidentiality of

tax returns and tax data .

Energy Legislation

The Congress is actively considering energy legislation which will provide for new

taxes and credits to encourage energy conservation . Provisions under consideration

would have a substantial impact on Service

operations .

Single Wage Reporting System

The Secretary of the Treasury has approved

a draft bill which, if enacted, would provide

for the combined annual reporting of wages

on Form W-2, Wage and Tax Statement, to

serve the needs of the Social Security

Administration in determining social security

program coverage and benefits as well as

the IRS for tax enforcement . This system

would benefit both employers and the Federal government through a substantial reduction in the volume of required wage

reports . The IRS has long urged this reduction in the U.S . paperwork burden .

Other Legislative

Developments

In addition to the laws on pension reform,

freedom of information, and rights to privacy, 16 other public laws enacted during

the second session of the 93rd Congress

required implementing action by the IRS .

Among significant laws passed were those

dealing with tax relief for U .S . personnel

who served in Vietnam and their families,

an increase in interest rates applicable to

refunds and delinquencies, and IRS assistance in locating absent parents and collecting court-ordered payments for child

support .

Fecleral-State Aid to State Tax Authorities

Cooperation Under the Intergovernmental Personnel Act ,

IRS employees have helped state,tax authorities improve their programs and have

contributed to increased cooperation between the IRS and state tax authorities . In

1975, the IRS provided almost 160 weeks

of training assistance to 17 state and local

governments State revenue employees received training in special agent, revenue

agent and income tax law courses . IRS

instructor training courses have enabled the

governments of New York State and the city

of Philadelphia to develop training courses

which will meet the future needs of their tax

department employees,

Federal-State Exchange

Progra m

The Service has formal agreements which

provide for reciprocal exchange of tax information with 48 states, the District of Columbia, Puerto Rico, Guam, and American

Samoa . A revised model agreement was

designed to tighten up the language on

disclosure of tax return information, and

some states have already signed agreements conforming to the revised model .

Magnetic tapes containing standard data

elements extracted from the Individual Master File for tax year 1973 were furnished to

tax authorities in 38 states, the District of

Columbia, and Puerto Rico . Also available

to state tax agencies are magnetic tape

extracts of information from the Business

Master File and Service master files relating

to gift taxes and exempt organizations .

Federal Collection of State

Individual Income Taxes

No state has elected to have the Federal

government collect individual state income

taxes as authorized by the Federal-State

Tax Collect :on Act of 1972, but in anticipation of such possible election by states ,

the IRS has completed preliminary plans for

tax withholding and operating procedures,

I

I

I
6

4

Statistical Statistics of Income Highlights

Activities The Statistics of income (SOI) reports provide

the public and the Government with a wide

variety of data reported on income tax returns, without violating taxpayers' rights to

privacy . The estimates are based on representative samples of returns .

SOI reports published in 1975 covered individual, corporation, and business income tax

returns for 1972 . The latter two were preliminary reports . All of these reports are issued

annually ,

Also in 1975, after an interval of some years,

the IRS published an SOI report on estate tax

returns . This report is based on Federal estate tax returns filed in 1973 for decedents

(most of whom died in 1972) . Work also

began on the first of a projected series of

statistical reports covering tax-exempt organizations, the first of which is expected to

cover compensation plans, farmers'cooperatives, and other exempt organizations including charities, schools, and associations .

Statistics of income publications can be obtained from the Superintendent of Documents, U .S. Government Printing Office,

Washington, D,C. 20402 .

Tax Models

Orginally developed over 10 years ago to

meet Treasury's need for timely estimates of

the revenue effects of proposed tax legislation, the tax models continue to be valuable

tools for economic planning . Five basic models, representing the returns of individuals,

corporations, proprietorships, partnerships,

and estates, are now used ,

Each model consists of a set of generalized

computer programs used with specially

structured data files comprising records in

the Statistics of Income files. Statistical information is generated from a model file by

using instruction cards designed by statisticians and economists.

In addition to the basic tax model for individual returns, the Service developed, in

connection with the Federal-State Tax Collection Act of 1972, a special individual model

set, "State Tax Models ." These models are

designed to permit reliable data estimates

for each of the 50 states and the District of

Columbia, Toward this end, the models are

based on the full Statistics of Income sample

(over 235,000 returns for 1973) instead of the

subsample of about 100,000 returns used for

the basic model .

Returns Filed Projections

Projections of the number of returns to be

filed serve as the basis for the development

of the Service's plans for the allocation of

manpower and facilities as well as budget

requests. These workload projections are

prepared for the United States as well as for

service center areas, regions, and districts .

Statistical techniques are used to identify the

relationship between tax returns filed and

economic and demographic variables . Annual updating allows for the incorporation of

the most recent economic outlook as well as

allowing the incorporation of the effects of tax

law changes.

The total number of returns filed in 1975

was about3 million higher than in 1974 . An

additional increase of

3 million more returns

is expected in 1976 . Much of the anticipated 1976 increase can be attributed to

the Earned Income Credit provisions which

the Tax Reduction Act of 1975 made effective for that filing year only . Between 1977

and 1980, returns are expected to increase

at an annual rate of2 .3 percent and at an

annual rate of about 2 percent between 1980

and 1985.

The trend toward more complex returns is

also expected to continue . Individual returns with adjusted gross income of

$10,000 and over are expected almost to

double between 1974-85 . Fiduciary, estate,

gift, exempt organization, and employee

plan returns are also expected to increase

rapidly .

Projections of some major categories of

returns are shown in the following table . 6

5

Selected Types of Returns Filed In 1974, and Projected for 1975,1976, 1980 and 1985, By Calendar Yea r

(Thousands)

Actual Ell mate d

Type of return 1974 197

5

122,082 125,020 128,11 07 137,636 151,48

0

(1) (2) (3) (4) (6) (6

) Total retums

Individual . total

Form 1040A

Form 1040, total

Adjusted&OX income

under$1

Adjusted gross income

$10.000 and over

Other Individual

Fiduciary

Partnership

Corporation, total

Forms 1120, 1120

Special, total

Assets under $50,00

0

Assets $50,000 under

$1,000,000

25 .1

81 .386 84 .022 86,364 93.781 104,206 28. 0

22,221 22,421

Projected

-

Pement

change

1974-

1976 1980 1985 198

5

24,935 23,322 24,015

8. 1

59,051 61,484 61 .309 70,326i 80,049 35.6

28.256 25,897 25.798 22 .402 19,571 -30.7

30.795 35,587 35 .511 47,927 60.478 96.4

114 117 120 130 142 25. 1 1 .456 1,566 1,650 2.178 2,965 103. 6

1,106 1 .132 1,153 1,221 1,299 17.4

2,085 2.076 2,117

2 .340 2,662 27.7

1 .744 1,726 1,748 i .896 2,123 21 .7

762 75

5

853 848

765 820 910 19

A

858 934 1,050 23. 1 Assets $1,000,000 or more _11-2-9

Form 1120S

Employment

Estate and Gift

Exempt Organization and

Employee Plans

Excise

Othert

123 125 142 1-6-3-26

3

341 350 369 444 539 58.2

24 .740 24,666 24,746 25,358 26,489

7.1

474 499 528 687 924 94. 9 1 .442 1,525 1 .971 2,159 2 .469 71 . 2

809 833 835 -646-852

54

8.854 8,701 8,743

9.068 9,614

I InciWes Forms 7 8 11 1 1 B 11C 4705, 4706. 4707

. 4708,

1040ES, 7004, 7005, 24~8~;d 1&2. '

O~MR-i-d 8,d 1-1 fig .- ~pp,d by Slsl,st,cs

~, 16 . 1975).

II

~m
66

Maintaining Integrity and

Efficiency

Management and

Administration

Advisory Groups
6

8

Maintaining

Integrity

and

Efficiency

Internal audit and security programs of the

Inspection Service help IRS managers

maintain the highest levels of integrity and

efficiency .

Internal Audit Activities

The Internal Audit Division independently

reviews all IRS activities to ensure that

policies, procedures, and controls protect

taxpayer rights and the revenue, and that

Service operations are carried out efficiently, effectively, and in accordance with

laws and regulations, Varied auditing techniques, including computer analyses and

statistical sampling, are used to detect

operating problems and integrity breakdowns .

Savings and Improvements

Management actions resulting from internal

audit reports have improved service to

taxpayers, increased operating efficiency,

strengthened internal controls, and stimulated an attitude of integrity awareness

within the Service . In addition, measurable

savings and additional revenue resulting

from Internal Audit activities in 1975 are

estimated to exceed $32 million .

Corrective actions on some internal audit

findings do not result in measurable savings or additional revenue, but instead

accelerate the collection of taxes or otherwise improve Service operations and procedures . Management actions to accelerate

the collection of taxes were taken on accounts and returns estimated Lp total $17

million .

Disclosure Safeguards

Periodic reviews are made in all regions to

evaluate security and controls over Federal

tax data . As a result of these reviews in

1975, Service managers took action to

strengthen the security and controls over

the computerized Integrated Data Retrieval

System and the tax document files . Also,

actions were taken to strengthen the procedures and practices for exchanging tax

data with the states,

Fraud, Embezzlement or

Misconduct

One of the basic purposes of the Internal

Audit program is to detect fraud, embezzlement, or other wrongdoing on the part of

Service employees or others who attempt to

corrupt employees .

Integrity reviews during 1975 resulted in the

detection of fraudulent or erroneous refunds

totaling $720,000 . In one case, the preparer

sent fictitious tax returns to all ten service

centers seeking refunds totaling $270,000.

Early detection of the scheme resulted in

supression of all of the fraudulent refunds

prior to issuance, The integrity reviews were

also a contributing factor in the referral to

Internal Security of information indicating

possible breaches of integrity by 249 employees and other individuals .

In addition to the prevention of revenue

losses due to early detection of improper

actions, the integrity reviews have a deterrent effect on those contemplating improper

actions, and also identify operational problems for correction by management .

Internal Security Activities

Internal Security Division inspectors conduct background investigations of IRS job

applicants and investigate complaints of

criminal and non-criminal misconduct and

irregularities concerning employees . They

also investigate persons outside the IRS

who attempt to bribe or otherwise corrupt

Service employees or who threaten or assault employees .

The Division also investigates the unauthorized disclosure of Federal tax return information, disclosure or use of information by

preparers of returns, and investigates

charges against tax practitioners . In addition, the Division conducts special investigations and inquiries as required by the

Commissioner and the Office of the Secretary of the Treasury .

During 1975, Internal Security Division inspectors arrested or were responsible for

the indictment of 140 individuals, including

20 employees or former employees and

120 taxpayers, tax practitioners or others . A

total of 76 clefendents were convicted during the year including 57 defendents who

pleaded guilty rather than go to trial . Forty6

9

one of these convictions were for bribery,

15 were for assault, and the remainder

involved such other criminal charges as

embezzlement, conspiracy to defraud the

Government, obstruction of justice, subscribing to false returns and disclosure of

confidential tax information . A New Jersey taxpayer and his CPA were

arrested for bribery of a revenue agent and

conspiracy after payment of $1,300 for a no

change audit result . A dentist in California was indicted for

paying a revenue agent $1,000 in an effort

to reduce tax deficiencies resulting from an

audit of two tax returns .

Bribery Attempts

Last year, IRS employees continued to

thwart those persons who challenged the

integrity of the Service through attempted

lbribery~ In 1975, 219 employees reported

238 possible bribery attempts, resulting in

61 arrests or indictments .

During the 14-year period that the IRS

Inspection Service has had the responsibility for the bribery program . IRS employees

have reported 1,647 bribery attempts . Approximately one of every four such attempts

resulted in prosecution of the taxpayer ;

in the remainder there was insufficient evidence to warrant prosecution . Since 1961,

bribery investigations have resulted in 442

arrests or indictments and 329 convictions

or guilty pleas . At the end of 1975, 44

persons were awaiting trial on bribery

charges .

The following cases illustrate bribery attempts during 1975 :

Two Pennsylvania CPA's were each sentenced to tHiee years probation and fined

$ 10,000 for attempting to pay an audit

conferee $15,000 to allow corporate travel

and entertainment expenses of $103,000

which had previously been disallowed . A Flotida hotel owner was indicted for

attempting to pay a revenue agent $1,050

to allow $70,000 worth of claimed business

expenses that could not be substantiated

during an audit . A major pornography peddler and Massage parlor owner in New York and his gobetween were indicted for attempted bribery after paying special agents $14,000 to

"fix" the pending tax case .

A $5,000 bribe payment to a revenue

agent in Pennsylvania in an effort to reduce

an $80,000 tax assessment resulted in the

arrest and conviction of an auto parts

manufacturer in California and a CPA in

Pennsylvania . The payment was forwarded

to the revenue agent through the Pennsylvania CPA from the manufacturer in California .

Assaults and Threats

on IRS Employees

Since March 1972, when it was assigned

the responsibility for the Assault Program,

the Internal Security Division has investigated 1,519 cases in this area . Prosecution

was authorized in 137 cases and 57 of

these resulted in convictions . During 1975,

619 investigations were initiated, and 15

persons were convicted . In instances where

prosecution is not authorized, inspectors

interview the alleged assailant, with the

approval of theU .S . Attorney, to determine

his or her full recollection of the incident .

The alleged assailant is informed of the

applicable Federal statutes and advised

that repetitive acts could result in serious

consequences, including prosecution .

The following cases illustrate examples of

threat and assault cases this year:

An Oklahoma taxpayer was arrested for

threatening two revenue officers who were

attempting to seize his truck . The taxpayer

brandished a pistol while threatening and

ordering the revenue officers from his property .

An Indiana taxpayer was convicted for

a ssaulting two revenue officers during a

seizure of his automobile . The taxpayer

struck both revenue officers and kicked one

of the officers after knocking him to the

ground , A Georgia taxpayer was arrested after he

pulled a knife on a revenue officer, shoved

him in a room and physically assaulted him

following a disagreement over delinquent

taxes .

Prevention of

Organized Crime Influence

The possible corruptive influence of organized crime upon the Service, always a

Matter of concern, has resulted in extensive

investigations . In one case, extending over

four years, ten individuals identified with

organized crime were indicted on bribery I

11 I I

i, II
70

and conspiracy charges . Seven of them

have been convicted, two were acquitted

and the charges were dropped against one

who pleaded guilty to other FBI charges .

The last two convictions involved a gambling figure and an alleged kingpin in a

crime family .

Other Criminal Prosecution

s

Other criminal activities involving the Service which led to prosecutions as a result of

Internal Security investigations this year

were the following~ An applicant for enrollment to practice before the IRS in Florida

was arrested and convicted for submitting

false statements on his application in an

attempt to conceal a prior conviction stemming from failure to file an income tax

return .

Two Michigan accountants were arrested

for conspiracy and extortion in a scheme

involving the impersonation of a revenue

agent and an attempt to extort money from

a taxpayer for ending a non-existent tax .

investigation . A former Fresno Service Center employee

and his brother were arrested and convicted after attempting to defraud the Government of $14,000 through a refund

scheme consi

Investigation of Employees

Employees who engage in improper behavior or unlawful actions constitute a very

small percentage of the IRS work force . The

vast majority of investigations relating to

alleged acts of impropriety by Service personnel result in exoneration of the employees .

The Internal Security Division completed

18,265 investigations during the year . In

addition, singular and multiple police record

searches were conducted on 14,329 persons considered for temporary short-term

appointments or for positions created for

special economic and educational programs .

These searches or investigations resulted in

the rejection of 195 job applicants and in

disciplinary actions such as separations,

suspensions, reprimands . warnings or demotion against 1,126 employees .

The chart on the next page shows the type

of investigations completed during the past

two years and disposition of those cases .

Investigative Teamwork

Breaches of integrity by individuals can be

investigated jointly by Internal Audit and

Internal Security with the assistance of the

IRS Intelligence Division in some cases .

In one case, a supervisory employee was

indicted on 19 counts of embezzlement in

October 1974 . The investigation disclosed

that he misappropriated more than $28,000

of taxpayers' payments and applied them to

his own estimated tax account subsequently refunded to him . He pleaded guilty

to the charges and received a prison term

for his actions.

In another case, a former employee misappropriated nearly $9,000 while working for

the Internal Revenue Service . She was

indicted for this action and subsequently

pleaded guilty to the charges. Part of the

sentence provided that she must make full

restitution to the Government for the money

that she embezzled .

Violations of tax laws discovered during

internal audits and integrity investigations

are referred to the IRS Intelligence Division

for investigation if no employees are involved . During the year, there were 52 such

referrals .

In each region, joint Internal Audit-Intemal

Security integrity developmental projects

were established to probe identified high

risk Service operations . For example, tests

of selected seizure and sale transactions

were made to determine if seized property

had been disposed of in accordance with

prescribed procedures. Also, tax adjustments resulting in large refunds were reviewed at service centers to verity the

propriety of the adjusting actions . A third

project was established to determine the

propriety of the release of tax liens for

delinquent accounts which had been outstanding for long periods .

Internal Security Division Investigation

s

Type of Investigations and Action

s

Total Investigations

Personnel investigations

Character and Security

Conduct

Special Inquiries

Total Personnel investigation

s

Other Type investigations

Assault

Disclosure

Applications to Practice Before IR

S

Charges Against Attorneys, CPA's and Enrollee

s

Federal Tort Claims

Bribery

investigations for Other Treasury Bureau

s

Total Other Investigations

Actions by Management officials

an Personnel investigations

Total Actions

Separations 1

Suspensions From Duty and Pay

Reprimands, Warnings and Demotions

Rejected for Employment

Non-Disciplinary Actions

2

Separations by Type of offens

e

Brioery, Extonion or Collusio

n

Embezzlement or Theft of Funds or Propert

y

Failure of Employee to Pay Proper Ta

x

Falsification or Distortion of Reports, Records, etc.

Unauthorized Outside Activity

Failure to Discharge Duties Properl

y

Divulgence of Confidential information

Acceptance of Fees and Gratuitie

s

Refusal to Cooperate in Official investigation

Personal and Other Misconduc

t

Inclwes hiognalims, tehremens or omer seborat-s omse amptoyees were under mh,ashgai,on or before adm strawe de-Im was made on d, .,Phn .,y vicm where in,est,gairde d8blosed darogatuy int-hoh. 7

1

197

4

21,322

13,82

3

1 .367

2 .71 1

17,901

472

103

1,207

74

144

215

1,206

&421

17,901

331

115 1 .033

329

16,09323

66

1173

1022

125

1975

18,265

11,104

1,063

2,56 1

14,72

8

619

179

1,491

75

134

21

4

825

3,537

14,72

8

256

74

796

195

13,40

758

23

12321 24407 5

fthides cieerance ard, ciosed, withota achon hittere oh conow

mestiptions.
I 7

2

Management

and

Administration

Cost Reduction and

Management Improvement

With active support and involvement of

executives and managers at all levels, the

IRS in 1975 placed high priority on and

carried out numerous projects aimed at

reducing costs and improving the efficiency

of operations. While it is not feasible to

determine and report the savings from all

cost reduction actions, the known results of

several major cost reduction initiatives in

overhead support operations indicate that

savings of approximately $20 million (some

of a cost avoidance nature) will be realized .

For example, estimated savings in space

and property utilization of over $400,000

were reported in 1975, and savings of over

$3.0 million are projected for 1976 as a

result of actions to reduce office space

expansion ; repair and refinish existing furniture when economically sound ; use multiple

occupancy work stations where more than

one worker can efficiently occupy one work

station ; verity actual IRS-occupied square

footage against measurement and billing

records; and review assigned quality ratings and classifications of IRS space .

In the telecommunications area, an intensive cost reduction campaign resulted in

better use of telecommunications facilities

and innovative approaches toward providing effective telecommunications at lower

cost . This campaign has reduced the cost

of toll-free Taxpayer Service, Federal Telecommunications Systems (FTS), and local

and long distance telephone calls in 1975

by $1 .1 million .

Several programs of effective mail managemen( produced savings in 1975 of nearly

$3 .9 million .

Records disposal during calendar year

1974 resulted in the release of space and

equipment valued at $2,047,000 . A total of

126,953 cubic feet of records was destroyed in accordance with regular programs, and 265,580 cubic feet of records

were retired to Federal Records Centers .

The Service's reports curtailment project,

which in 1974 yielded an annual savings of

$2 .4 million was carried into 1975 and

produced additional savings of $700,000

through the elimination of unessential reports and the modification of others . IRS

employees Gary Hall, Roy Shiflett, and

Joseph Tarantino received an Award for

Special Merit from the Association of Records Executives and Administrators in recognition of their achievements on this project .

Employee participation in cost reduction

efforts was successfully promoted through

the incentive awards program . During 1975,

932 employee suggestions were adopted,

resulting in tangible benefits of $710,200 . In

addition, 430 awards were granted for special achievements which saved $535,900 .

This total tangible savings of $1,246,100

from suggestions and special achievements

slightly exceeded incentive awards program savings reported in 1974, for which

the Service received the Secretary's Award

for Cost Reduction and Management Improvement .

Safety Programs

With a rate of1 .9 disabling employee

injuries per million staff-hours worked in

calendar year 1974-down from a rate of 2 .0 in 1973-the Service continues to rank

as one of the top Federal agencies in the

area of health and safety .

Service personnel drove 127 .6 million miles

on official business in 1975 with only 812

accidents. for a low accident frequency rate

of 6 .4 accidents per million miles driven.

Executive Personnel

The IRS experienced an acute turnover of

executive staff this year because of the

large number of senior-level officials who

retired in 1974 and the $36,000 ceiling on

executive salaries . However, the Service

undertook to meet its obligation to fill executive positions by training 18 employees in

an executive development class .

Other special efforts used by the IRS to

train mid-level and top-level employees and

minimize the amount of time senior officials

are away from their posts of duty included :

Development of "Technical Guidelines for

Executives"-a ready desk reference providing current, concise and accurate interpretation and clarification of those complex

portions of the Internal Revenue Code and

Manual needed in the executive's day-today activities .

Communications via video tapes-a means,

for the Commissioner and other headquarters officials to directly communicate their

views, official policy, and new procedures

on a person-to-person basis without the

field executive having to travel to executive

conferences .

Commissioner Alexander made several visits to

the North Atlantic Region during 1975 . In the top

photo, the Commissioner visits employees and

managers at the newest Manhattan District postof-dury at 55 West 125th Street in Harlem, New

York City . In the bottom photo, taken at the

73

Reduction in instructor time-reducing by

almost 50 percent the time and number of

executives needed to serve as instructors in

improved mid-level training courses which

accomplished in 2Y2 weeks what formerly

took 4 weeks .

Brookhaven Service Center, Holtsville, N .Y., from

left, Regional Commissioner Elliott Gray and

Commissioner Alexander discuss operational

matters with two audit division managers Ed

Glister and Charles Delvarco. I I
74

Labor Management Activities

In early February, the IRS concluded a 2-

year collective bargaining agreement with

the National Treasury Employees Union

(NTEU) covering 2,200 employees in the

headquarters office . It provides for bilateral

union-management decision-making in personnel policies and practices, such as

promotions and performance evaluations.

At the close of 1975, the IRS and NTEU

were involved in the process of negotiating

a new multicenter agreement covering

29,000 employees in the Data Center, National Computer Center and in 9 of the 10

service centers . Overall, the National Office

agreement, the multicenter agreement, and

the multiregional and muilidistrict agreements cover over 62,000 IRS employees .

The collective bargaining agreements concluded between the IRS and employee

unions renewed the need for training of

managers and supporting staff people on

their supervisory responsibilities under the

agreements .

Orientation sessions were held in all regions

for first-line and middle managers, and

three executive seminars on union relations

were given to field and National Office

officials . We also conducted training for

personnel officers to assist them in advising

managers on union relations matters .

Additional specialized courses in grievance

handling and arbitration have been developed and will be used in Service-wide

training next year .

Employment of the Handicapped

The IRS continued to increase its employment of the handicapped in all occupations .

By the end of calendar year 1974, 1,629

handicapped persons were employed by

the IRS . Of this number, 107 were blind

individuals working as taxpayer service

representatives in IRS districts and as tax

examiners in the service centers .

Every year, the IRS focuses attention on the

valuable contributions of IRS handicapped

employees and their ability to perform toplevel work by presenting an IRS Outstanding Handicapped Employee of the Year

Award . This year, CharlesE . Johnson, computer operator at the Andover Service Center, received the award .

Equal Employment Opportunity

The IRS continued to increase equal employment opportunity and to insure Upward

Mobility opportunities for all employees,

While total Service year-end employment

increased by 13.6 percent between 1974

and 1975, minority employment during the

same period increased by 19.6 percent,

from 11,971 to 14,321 . This included a 36

percent increase in employment of Spanishspeaking employees, from 1,609 to 2,188 .

On December 14, 1974, the IRS officially

recognized 1975 as "International Women's

Year" and programs and activities were

planned throughout the Service to focus

attention on the potential and accomplishments of IRS women . During the year, Ms .

Anita Allpern was appointed Assistant Commissioner (Planning and Research), making

her the first career woman in the IRS and

the Department of the Treasury to reach

grade GS-18 .

Commissioner Alexander confers with Jesse L

Paredes, of the,Audit Division, shortly after

appointing him as National Spanish Speaking

Program Coordinator. Spanish Speaking

coordinators in the National Office, regions, and

district offices serve as a local point for helping

to prepare and implement affirmative action

plans covering recruitment, job restructuring,

training and career development which enhance

opportunities for Spanish Speaking Americans

within the Service .

The IRS formalized its Upward Mobility

program in August, 1974, to place special

emphasis on providing opportunities for

employees in grades GS-1 through 7, or

the equivalent, to increase their effective

utilization in the tax administration area .

Although the program was not fully implemented until late in the year, approximately

800 employees actively participated in

training under the program ,

Taxpayer Service Specialist

s

In recognition of increased emphasis upon

providing quality assistance to taxpayers,

the IRS developed the new taxpayer service specialist series . The program established taxpayer service occupations with

expanded duties and responsibilities,

higher-favel qualification requirements, an

improved grade structure and more comprehensive training . To enhance these occupations, the IRS developed new position

descriptions, an amendment to the qualification standard, and incumbent selection

and screening criteria.

Taxpayer Relations Training

During 1975, a special effort was also made

to improve the effectiveness of taxpayer relations . Most new and certain incumbent

employees in the collection activity who have

direct dealings with the public attended taxpayer relations training which covered interpersonal communications, taxpayer rights

and responsibilities, and how to resolve issues with taxpayers in a fair and helpful man~

ner ,

Revenue Agent Training

The IRS-designed revenue agent training

program (units 1, 11, 111 and IV) was evaluated by the American Council on Education

(ACE) in March and found to be of such

high quality that ACE has recommended to

colleges and universities the granting of six

upper division credit hours to IRS employees who successfully complete the training

program and who subsequently enroll in

universities to pursue a masters degree in

tax law.

The revenue agent training program has

been revised to reduce the classroom portion

of training from 141/2 weeks to 12 weeks with

75

improved quality and effectiveness of instruction . Under the restructured training arrangement, a new revenue agent will be able

to examine various tax returns with minimum

supervision after 25 weeks of classroom and

on-the-job training instead of 32 weeks, We

estimate that about 1,200 agents will be

trained next year with projected salary savings of $1 .2 million and per them savings of

$360,000.

This year, another 31 experienced revenue

agents were trained for computer audit

specialist positions . By the end of 1975, 104

IRS employees were qualified to perform the

complex auditing duties required by today's

sophisticated computer-prepared tax returns .

Paraprofessional Position

s

By the end of 1975, over1 .000 paraprofes

.

sional positions had been established and

filled in the Audit . Collection, and Intelligence Divisions . These employees, in grades GS-4 through GS-7, perform work

that would otherwise be* done by profes

.

sional and technical employees at grades

GS-9 and above . This program has resulted in savings of over $4 .5 million dollars

plus more effective use of the higher-level

skills, knowledge and abilities of the professional and technical workforce. I I

Ij I
7 6

Advisory

Groups

Commissionees Advisory

Grou p

In January 1975, the Commissioner named

14 prominent accountants, attorneys, business executives, educators and public interest representatives to serve as his Advisory Group for 1975.

The group met with the Commissioner twice

before the fiscal year ended to provide him

and his staff with useful views and criticism

of IRS operations so that the Service could

do a better job of serving the public . Members of the group are selected on the

basis of suggestions by professional and

public interest organizations in the tax field,

IRS officials around the country and other

groups and individuals interested in sound

tax administration . Members of the Commissioner's Advisory Group serve for one

calendar year without compensation .

Art Advisory Pane l

Since 1968, a 12-member panel of art

experts including museum directors, scholars, and art dealers, has helped the Service

determine the correct value of works of art

donated to charity or included in taxable

gifts or estates .

In its seven years of operation, the panel

has reviewed estimates valued at more than

$145 million and has recommended valuation adjustments of over $35 million . At the

three meetings held during 1975, the panel

reviewed works of art valued in tax returns

at approximately $27 million and recommended substantial adjustments in approximately 60 percent of the cases .

Small Business Advisory

Commiftee

As a step towards recognizing and dealing

with the particular tax problems of small

businessmen, the Service announced the

organization of a new Small Business Advisory Committee, The Committee held its

first meeting in the fall of 1975.

Chapter 1 0

Appendix

IRS Organizational Chart

Map Of Regions, Districts, and

Service Centers

Commissioners of the IRS

(1862-1975)

Principal Officers of the IRS as

of June 30, 197 5

Audit Charts and Tables

Statistical Tables

Index

I

4

I

i

An IRS retirement gathering in December 1974

brought five Internal Revenue Commissioners

together, and this picture records the notable

event . (L to R) Sheldon S . Cohen, 1965-69;

Johnnie M . Walters, 1971-73 ; Donald C .

Alexander, 1973 to present; Mortimer M . Caplin.

1961-64; Randolph W. Thrower, 1969-71,
7 8

Organization

National

Offic e

Aaalatarn

C.-Il (Mcounts."o- .

ACDOU'nu In at d P7*'*I,g

c

T....... S--

IRS Data Ca-r

D.I .11, McnigInn

n.d.n., C-P-C.nn,r

..IfinabuT.

Fiat

office

Astailland

c-l'u. ..'

Divisions

F,dd,,. .

""n"na" I

~Mtnddge-t

rad-I

Tnnning

T..

Ad"Rn' S-I,n, .

as

AC_, .Irtmit It"1111 .

Id ..r.

Ac covnns nd T .

S.-c.-.

Ad.1-nd.n

A

.1--nd E. . . p

n .Z0 I..n..... ...

Aindalund Conadfitakdrai r

DIviskans

A1.111I .

-dft

Int--1

ond .d .na

A"Itfian

1.the C.""hation .,

(P.bhd ".I,)

Pattall.AA Ir . Divildon

s. 11. cm ..

(10)

MIMIM'drIatralon

A.d n Data C.-,.I .n and Am,nbng

P-ng

T.-San,-

C inninnissioner

Deoputy

Commissioner

7C=Wtadna,

(Ennin.". P .n.

.. E-PI

om..d.fi .n .)

11a.p., am

of tha Trantaury

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

Coannnissio n

Inland] AL11

Intarnat S-nry

Assistant

ftaa-h)

I-nat M-,- D-nn.

LadwA.-.h .nd 0 Rdwnd

a An,IySj,

Idn'..

Tax Sot

R-Ign

011IMema

Individual T.

C,,-nd'.T.

T.F. . ..

ftbliesd .. .

c.-'

A-cl.t .

rhI.f C-1

hislons

Ad'..Und.11.

T,, Coun

,tig .j .n

I

A--III*

Chlaf I

nedlnjdal )

Olviadn.

InneadnLad .l.tonland

A.M-t

chladcourDIlkans

ctn=- T.

Ga- 1.1. 1 Sann.a.

FFI-9-1 -1-M-01.

Rglonal Caramission.1

aa ..1

D

I - -- D111.1-

--ad.n

A On,

Co.-

Empl- PI.na and U. 1.

o"a-atims

Inn ' .Z.In .

.,dat,a, S-iv,

Rgindau C.-I.

(7)

Umn. T .

--,I U ,,I,,n

T.Cd. n

L,Iig.fi.n

Internal Revenue

Regions and District s

Key ; 0 Commissioner of 0 District Director

Internal Revenue

(Washington, D .C .)

E Regional

Commissioner

Included In Alaska Hawaii

Western Regio n

Region and District Legend:

Contra] Region

0 Service Center

Southeast Region 29 Now Orleans, La ,

1 Cincinnati . Ohio 14 Atlanta Ga .

2 Cleveland, Ohio 1 5 Birrrtin~hzdn, Ala.

3 Covington . Ky. 16 Chamblee, Ga .

(Cincinnati SC) 17 Columbia nsb~' S. .C..C

4 Detroit, Mich. 18 Gres

5 Indianapolis, Ind. 19 Jackson Mi 6

6 Louttvills, Ky. 20 Jackson~ll Is ~Ia .

7 Parkersburg, W, Va is, T;nn. . 21 Momph

Mid-Atlantic Region 22 Nashville, Tenn .

8 Baltimore. Md.

9 Newark, N .J.

10 Philadelphia, Pa .

1 1 P tISb 1 rgh, Pa U .

2 Richmond, Va,

13 Wilmington, Del,

Southwest Region

.23 Albuquerque,

N .

2, Maxax 4 Austin, T .

25 Cheyenne, Wyo,

26 Dallas, Tex.

27 Denver, Colo .

28 Little Rock, Ark.

30 Oklakhoma rity,

31 Wic its Ohla- . Kans.

Midwest Region

32 Aberdeen, S . Dak

33 Chicago

34

DOS JOWIS

as,

35 Fargo, N. Dak.

36 Kansas City. Mo.

37 Milwaukee . Wis.

38 Omaha, Neb .

39 Springfield, 111,

4 St. Louis, Mo.

41 St. Paul, Minn.

* National Computer -Regional Boundary

Conte,

(Martinsburg, W. Va. )

*IRS Data Center .... District Boundary

(Detroit, Mich .)

Office of International

Operations, National Office

North Atlantic Region Western Region

42 Albany N.Y .

43 Ando4r, Mass.

44 Augusta . Maine

4 -1, , 'I.Ios..ton, Mass .

47 Buffaloklyn, N,Y.

. N.Y .

48 Burlington . Vt .

49 Hartford. Conn.

50 Holeville, N.Y .

(Brookhaven SC)

51 Manhattan, N.Y .

52 New York. N.Y .

53 Portsmouth, N.H .

54 Providence, R .I.

55 Anchorage, Alaska

56 Boise, Idah o

57 Fresno, Calif.

58 Helena . Mont .

59 Honolulu, Hawall

60 Los Angeles. Calif .

61 Ogden Utah

62 Phoenj Ariz .

63 Poriland . Ore,

64 Reno, Nev .

65 Salt Lake City, Ut h

66 San Francisco, C:11f .

67 Seattle, Wash .

79
8

0

Historical George

S. Boutwell

List of Massachusetts

July 17, 1862/Mar. 4, 1863

Commissioners Joseph J . Lewi

s

of Internal Pennsylvani

a

Revenue Mar. 18, 1863/June 30, 1865

William Orton

New York

July 1, 186510ct . 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. Dougla"

Pennsylvania

Aug . 9,1871/May 14, 1875

DanielD. Pratt

Indiana

May 15, 11875/July 31, 1876

Green B. Raur

n

Illinois

Aug . 2, 1876/Apr. 30, 1883

Walter Evans

Kentucky

May 21,1883/Mar . 19,1885

JosephS. Miller

West Virginia

March 20, 1885/Mar. 20, 1889

John W. Mason West Virgini a Mar. 21, 1889/Apr . 18,1893

JosephS . Miller

West Virginia

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

Illinois

Nov . 27, 1896/Dec. 31, 1897

Nathan0 . Scott

West Virginia

Jan . 1, 1898/Feb. 28, 1899

George W . Wilson

Ohio

Mar . 1, 1899/Nov . 27,1900

John W. Yerkes

Kentucky

Dec . 20,1900/Apr. 30,1907

JohnG. Capers

South Carolina

June 5, 1907/Aug . 31, 1909

RoyalE. Cobalt

Virginia

Sept. 1, 1909/Apr . 27, 1913

WilliamN. 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 . Blalr

North Carolina

May 27, 1921/May 31, 1929

Robert H. Lucas

Kentucky

June 1, 1929/Aug . 15,1930

David Burnet

Ohio

Aug . 20,1930/May 15,1933

Guy T. HeleverIng

Kansas

June 6, 1933/Oct. 8, 1943

RobertE. Hannegan

Missouri

Oct. 9, 1943/Jan . 22, 1944

Joseph0 . Nunan, Jr

.

New York

Mar. 1, 1944/June 30, 1947

GeorgeJ . Schoeneman

Rhode Island

July 1, 11947/July 31, 1951

JohnS. 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/Apr. 30, 1973

DonaldC . Alexander

Ohio

May 25, 1973

81

Office of Commissioner of Internal

Revenue Created by Act of Congress, July

1, 1862

In addition, the following were Acting

Commissioners during periods of time

when there was no Commissioner holding

the office :

John W. Douglas, of Pennsylvania from

Nov. 1, 1870, to Jan . 2, 1871 ; HenryC .

Rogers, of Pennsylvania, from May

1 to

May 10, 1883, and from May1 to June 4,

1907 ; JohnJ. Knox, of Minnesota from

May 11 to May 20, 1883 ; Robert Williams,

Jr., of Ohio, from Nov . 28 to Dec . 19,1900 ;

Millard F. West, of Kentucky, from Apr. 12

to May 26, 1921 ; H . F . Mires, o

f

Washington, from Aug . 16 to Aug. 19,

1930 ; Pressly R . Baldridge, of Iowa, from

May 16 to June 5, 1933 ; HaroldN. Graves,

of Illinois, from Jan . 23 to Feb . 29, 1944 ;

JohnS . Graham, of North Carolina, from

Nov . 19, 1952, to Jan . 19, 1953 ; Justin F . Winkle, of New York, from Jan . 20 to Feb.

3, 1953 ; 0. Gordon Delk, of Virginia, from

Nov . I to,Dec . 4, 1955, and from Oct. 1 to

Nov . 4, 1958 ; Charles 1 . Fox, of Utah, from

Jan . 21 to Feb . 6, 1961 ; Bertrand M .

Harding, of Texas, from July 11, 1964 to

Jan . 24, 1965 ; William H . Smith of Virginia,

from Jan . 21 to Mar. 31, 1969 ; Harold T .

Swartz of Indiana, from June 23

to

Aug . 5, 1971 ; and Raymond F . Harless of

California from May 1 to May 25, 1973 . I I

ill
82 1 83 111i

Principal

Officers as of

June 30,1975

National Office

Office of the Commissioner

Commissioner

Donald C, Alexander

Deputy Commissioner

William E. William s

Assistant to the Commissioner

Burke W . Willsey

Assistant to the Deputy Commissioner

Robert B . Nelson

Assistant to the Commissioner

(Public Affairs)

Philip L. Rothchil d

Administration

Assistant Commissioner

Joseph T. Davis

Director, Program Staff

Julius H . Lauderdale

Division Directors :

Facilities Management

Leo C. Inglesby

Fiscal Management

Alan A . Beck

Personnel

Billy J . Brown

Trainin g

Richard C. McCulloug h

Tax Administration Advisory Services

Gordon C . Hill, Jr.

Deputy Equal Employment

Opportunity Officer

Barbara R. Thompso n

Compliance

Assistant Commissioner

S. B. Wolfe

Deputy Assistant Commissioner

Harold A . McGuffin

Division Directors:

Appellate

James C . Stigamire

Intelligence

Thomas J. Clancy

Audit

John L. Wedick, Jr.

Office of International Operations

Joseph G . McGowan

Accounts, Collection and

Taxpayer Service

Assistant Commissioner

Robert H . Terry

Deputy Assistant Commissioner

James 1. Owens

Director, Program Planning

& Review Staff

Stephen J . Stalcup

Division Directors :

Collection

Thomas L . Davis

Taxpayer Service

Stanley Goldberg

National Computer Center,

Martinsburg, W. Va . William E. Palme r

Accounts and Data Processing

Vacan t

IRS Data Center, Detroit, Mich .

James E . Daly, Jr.

Inspection

Assistant Commissioner

Warren A. Bate s

Deputy Assistant Commissioner

William C . Rankin, Jr .

Division Directors :

Internal Audit

Rudolph W. Arena

Internal Security

William J . Huliha n

Planning and Research

Assistant Commissioner

Anita F. Alpern

Division Directors :

Research and Operations Analysis

Vacan t

Tax Systems Redesign

Donald G . Elsberry

Legislative Analysis

Claude D . Baldwin

Statistics

Vito Natrella

Internal Management Documents

Jeremiah R . Thompson

Technical

Assistant Commissioner

Lawrence B . Gibb s

Deputy Assistant Commissioner

S . A . Winborn e

Division Directors :

Corporation Tax

John W. Holt

Individual Tax

Aaron Feibel

Tax Forms and Publications

Roy J . Linge r

Employee Plans/Exempt

organizations

Assistant Commissioner

Alvin D . Lurie

Deputy Assistant Commissioner

Theodore C . Rademaker

Division Directors :

Employee Plans

Fred J . Och s

Exempt Organizations

Joseph A.Tedesco

Actuaria l

Donald S . Grubbs, Jr.

Office of Chief Counsel

Chief Counse l

Meade Whitaker

Deputy Chief Counsel

Charles L . Saunders, Jr .

Technical Advisor s

to Chief Counsel

David E . Dickinson

Daniel S . Folzenlogen

Staff Assistant

to Chief Counsel

Richard A . Fisher

Associate Chief Counsel (Litigation)

Robert A. Bridges

Associate Chief Counsel (Technical)

Richard M . Hah n

Assistant Chief Counsel

Leon G . Wigrize r

Special Assistan t

to the Chief Counsel

Lester Stein

Division Directors :

General Litigatio n

J . Walter Feigenbaum

Criminal Ta x

David E . Gaston

Refund Litigation

Jerome D . Sebastian

Tax Court Litigation

Dennis J . Fox

General Legal Services

Joseph J . Stengel

Disclosure

Harold T . Flanagan

Interpretative

John L . Withers

Legislation and Regulations

James F . Dring

Administrative Services

Margaret M . Richardso n

Regional and District

Officer s

Central Region

All Regional Officers at 550 Main Street,

Cincinnati, Ohio 45202, unless a different

address is indicated

Regional Commissioner

Leon C . Gree n

Assistant Regional Commissioners :

Administratio n

Arthur J . Collinson

Audit

Jack P . Chivatero

Accounts, Collection

& Taxpayer Service

L. Stanley Baker

Appellate

Claude C. Rogers, Jr .

Intelligence

Harold B. Holt

Employee Plans/Exempt

Organizations

Merlin W. Hey e

District Directors:

Cincinnati, Ohio 45201

Dwight L . James, Jr .

Cleveland, Ohio 44199

Robert J . Dath

Detroit, Mich . 48226

Roger L . Plate

I

I

f

i I
84

Indianapolis, Ind . 46204

James W. Caldwell

Louisville, Ky. 40202

Paul F . Niederecker

Parkersburg, W . Va . 26101 T. Blair Evan s

Director, Cincinnati Service Center,

Covington, Ky . 4101

2

PatrickJ . Ruttle

Regional Counsel

DavidE . Mills

Regional Inspector

JohnE . McManus

Mid-Atlantic Region

All Regional Officers at 2 Penn Center

Plaza, Philadelphia, Pa . 19102, unless a

different address is indicated

Regional Commissioner

WilliamD . Waters

Assistant Regional Commissioner

Administration

Americo P. Attorri

Audit

Paul H . Thornton

Accounts, Collection & Taxpayer Service

LeroyC . Gay

Appellate

Reuben H . Saideman

Intelligence

Vacant

Employee Plans/Exempt Organizations

JamesJ . Ryan

District Directors :

Baltimore, Md . 21201

GeraldG . Portney

Newark,N .J . 07102

Elmer H . Kiinsman

Philadelphia, Pa . 19108

James T . Rideoutte

Pittsburgh, Pa . 15222

CorneliusJ . Coleman

Richmond, Va . 23240

James P . Boyle

Wilmington, Del . 19801

JamesE . Quinn

Director, Philadelphia Service Center,

Philadelphia, Pa . 19155

NormanE . Morrill

Regional Counsel

Robert L . Liken

Regional Inspector

Emanuel L . Schuster

Southeast Region

All Regional Officers at 275 Peachtree St. N .E ., Atlanta, Ga . 30303, unless a different

address is indicated

Regional Commissioner

AndrewJ . O'Donnell, Jr.

Assistant Regional Commissioners

:

Administration

PhilipN. Sansotta

Audit

PhilipJ . Sullivan

Accounts, Collection & Taxpayer Service

WilliamE . Douglas

Appellate

Kenneth F . Montz

Intelligence

EdmundJ . Vitkus

Employee Plans/Exempt Organizations

Nelson L. Hower

District Directors:

Atlanta, Ga . 30303

John W . Henderson

Birmingham, Ala . 35203

Dwight T. Baptist

Jacksonville, Fla. 32202

Charles0 . DeWitt

Greensboro,N .C . 27401

Robert A .LeBaube

Jackson, Miss. 39202

William Daniel

Nashville, Tenn . 37203

JamesA. O'Hara

Columbia,S .C . 29201

Harold Bindsel l

Director, Atlanta Service Center,

Chamblee, Ga. 30006

William B . Hartlag

e

Director, Memphis Service Center,

Memphis, Tenn. 3811

0

ClaudeA. Kyle

Regional Counsel

HenryC . Stockell, Jr.

Regional Inspector

Dale W. Gardner

Southwest Region

All Regional Officers at 11 14 Commerce

St ., Dallas, Tex . 75202, unless a different

address is indicated

Regional Commissioner

Walter T. Coppinger

Assistant Regional Commissioners :

Administration

Raymond Asturnian

Audit

HowardC. Longley

Accounts, Collection, & Taxpayer Service

George M. Oliver

Appellate

PaulD . Williams

Intelligence

RobertD . Elledge

Employee Plans/Exempt Organizations

Percy P. Woodard, Jr .

District Dlrectors~

Albuquerque,N . Mex . 87101

ArturoA . Jacobs

Austin, Tex . 78701

Robert M . McKeever

Little Rock, Ark. 72203

EmmettE . Cook, Jr.

New Orleans, La . 70130

Roger F . Shockcor

Denver, Colo. 80202

Gerald L . Mihlbachler

Cheyenne, Wyo . 82001

BobbyG . Hughes

Dallas, Tex. 75202

Alden M . McCanless

Oklahoma City, Okla. 73102

Clyde L . Bickerstaff

Wichita, Kans. 67202

MauriceE. Johnson

Director, Austin Service Center,

Austin, Tex. 78740

LeonardE . Sernrick

Regional Cou nsel

William B . Riley

Regional Inspector

Paul F. Kearns

85

Midwest Region

All Regional officers at

1 North Wacker

Dr., Chicago, Ill . 60606, unless a different

address is indicated

Regional Commissioner

Edwin P . Trainor

Assistant Regional Commissioners:

Administration

DavidS . Burckman

Audit

John H . Rauen, Jr .

Accounts, Collection & Taxpayer Service

ThomasJ . Laycock

Appellate

Bernard L . Hardiek

Intelligence

RobertJ . Bush

Employee Plans/Exempt Organizations

John Edwards

District Directors :

Aberdeen,S. Dalk . 57401

John B.Langer

Chicago, Ill . 60602

Charles F. Miriani

Des Moines, Iowa 50309

DonaldJ . Porter

Fargo,N . Dak . 58102

MitchellE . Premis, Jr .

Springfield, Ill . 62704

IraS . Loeb

Milwaukee, Wis . 53202

Lawrence M . Phillips

Omaha, Neb . 68102

Everett Loury

St . Louis, Mo . 63101

RichardC . Voskull

St . Paul, Minn . 55101 C . Dudley Switzer

Director, Kansas City Service Center

Kansas City, Mo . 64170

RoyD. Clark

Regional Counsel

FrankC . Conley

Regional Inspector

WilliamE. Mulroy ,I I I 11

111 1

lu~
86

North-Atlantic Region

All Regional Officers at 90 Church Street,

New York, N .Y . 10007, unless a different

address is indicated

Regional Commissioner

Elliott H . Gray

Assistant Regional Commissioners :

Administration

HarryJ . Bodkin

Audit

William H . Tompkins

Accounts, Collection & Taxpayer Service

Marshall P . Cappelli

Appellate

RichardE . Fogwell

Intelligence

Harry P . McCal l

Employee Plans/Exempt Organizations

Toomer F. Carr

District Directors :

Albany, N .Y . 12206

GeorgeS. Alberts

Augusta, Maine 04330

JohnJ. Jennings

Boston, Mass . 02203

JohnE. Foristall

Brooklyn, N .Y . 11201

Charles H. Brennan

Providence, R .I . 02903

JohnJ . O'Brien

Buffalo, N .Y . 14202

Herbert B . Mosher

Burlington, Vt . 05401

Caro

'

lyn K . Buttolph

Hartford, Conn . 06103

JosephJ. Conley, Jr .

Manhattan, N.Y . 10007

PhilipE. Coates

Portsmouth,N .H . 03801

Frank T . Murphy

Director, Andover Service Center,

Andover, Mass. 01812

M . Eddie Heironimus

Director, Brookhaven Service Center,

Holtsville, N.Y. 1174

2

Henry P . Seufert

Regional Counsel

TheodoreE. Davis

Regional Inspector

Sidney M . Wolk

Western Region

All Regional Officers at 525 Market Street,

San Francisco, Calif . 94105 unless a

different address is indicated

Regional Commissioner

ThomasA . Cardozo

Assistant Regional Commissioners:

Administration

WarrenN. Slack

Audit

Johnnie Robertson

Accounts, Collection & Taxpayer Service

John D .Johnson

Appellate

WallaceJ. Spencer, Jr.

Intelligence

RichardC . Wassenaar

Employee Plans/Exempt

Organizations

Ralph F. Albrecht

District Directors:

Anchorage, Alaska 99510

CharlesE. Roddy

Boise, Idaho 83702

Howard T. Martin

Helena, Mont . 59601

FrederickC. Nielsen

Honolulu, Hawaii 96813

Robert M. Cutts

Los Angeles, Calif. 90012

William H . Connett

Seattle, Wash . 98121

MichaelD . Sassi

Phoenix, Ariz . 85025

PrescottA. Berry

Portland, Ore . 97204

Ralph B. Short

Reno, Nev . 89502

Gerald F . Swanson

Salt Lake City, Utah 841 10

Roland V . Wise

San Francisco, Calif . 94102

Francis L . Browitt

Director, Ogden Service Center,

Ogden, Utah 84201

John0. Humme l

Director, Fresno Service Center,

Fresno, Calif. 93730

Fredric F . Perdue

Regional Counsel

Emory L. Langdon

Regional Inspector

Frederick R . Rowe, Jr.

Audit Charts

and Tables

I

)"j) ri
Table I .-Audtt Staff Years Realized, FY 197

5

Revenue Agents

United States

Centra l

Midwest

89

Excludes special occupational and adcohol and

tobacco taxes .

North-Atlantic

Mid-Atlantic

Southeast

Southwest

Western

010

Tax Auditors

Years

Planned- ActualI Percent

14,079 14,265 101 .3

2,873 2,892 100.7

1,867 1,895 101 .5

1,558 1,597 102.5

1,554 1,565 100.7

2,051 2,061 100.5

1,771 1,806 102 .0

2,295 2,339 101 .9

110 110 100.0

United States 4,636 4,66

6 100 .6

North-Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

010

Other (Permanent)3

United States

North-Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

010

Operating Financial Plan .

Report of Average Positions Realized and

Costs Incurred . (Includes Regional Analysts) . ~ Other includes ARC Audit, Executiv e

Assistant, Chief of Audit and Clerks .

777 795 102.3

incta a, Eaurre and Gift, Total KM1156 670,514 1,495.7112.007,225 Z43

Service Center Examination Inc ., Est . and Gift 104.698 .1

2

Incorne, Pat and Gift. Grand Total K946,155 V0,514 1,406,7" 2,171,923 2.5

5

Excift 7K382 74,493 12,774 95,119 12 .1

Dstrict 74,493 12.774 87,62

7

service Center - - 7,852

Employrnent 24,739l 01,250 21111,6113 110,033 .5

service cant. Dialito"I.:

Total

District Type Returns

1,329 .305 -

service Center Urnite

d

568 585 103.0

630 653 103.7

451 440 97 .6

572 556 97.2

517 522 101 .0

1,053 1,039 98.7

68 76 111 .8

6,765 6,477 95.7

1,214 1,137 93.7

792 786 99.2

Table 2 .-Returns Filed, Examinations, and Audit Coverag

e

Returns

Filed Returns Examined FY 197

5

Percent

Revenue Tax CoverCY 1974 Agents Auditors Total age

Indivikml, total 8IA71,762 355,170 11,4183,3111111 1 A'K558

22

NB Under $10,000. Total 43.216 .487 41,43D 740 .872 7B2,302 1 .8

NB Under $10,000-Stanclard 30,279.027 6.967 213,942 220,909 .7

NS Under $I 0,000-fternized 12,937,460 34.463 526,930 561 .393 .4

3

NEI $10,000 Under S50.000 27,765j47 79.507 .609,952 689 .459 ~2~

5

NB $50.000 and Over 471,803 45,313 13 .917 59,230 1 :2.6 B Under $1 0,GDO 4,724,378 49.067 86,322 135,389 2 .9

B $10,000 Under $30,000 41,293,0911 71 .710 25 .834 97,5" 2.3 B $30,000 and Over 800.249 68,143 6.491 74,634 9 .3

Fiduciary 1,456,311 lisse 199 11,757 .8

Corporation, tots] 1,744,068 1&%240 1,8491Kno &9

Assets not reported 130.611 6.207 69 6,276

4 .0

Under $50,000 631,455 19,171 997 20,168 3.2

$50,000 Under $ 100.0130 250.030 16,230 393 16.623 6.7

$100,000 Under $250,000 319,793 23,478 107 23,5857 .4

$250,000 Under $500.01)(1 176,333 24,223 40 24.- 263 _~_3

8

$500.0DO Under $I Mil. 106,724 19,760 20 19.780 18.5

$1 Mil. Under $5 Mil 90.871 28,115 16 28,131 31.0

$5 Mil. Under $10 Mil. 14,210 5,184 3 5,187 36.5

$10 Mif . Under $50 Mil . 17.508 6,306 1 6,307 _T6._o

$50 Mil . Under $ 100 Mr . 2,845 I . W

$100 Mil . and Over 3,688 3,024

1,543 54 .2 3 .026 82. 1

Eal total 215,537 40,591 11,357 40,948 22.7

Gross Estate Under $300,000 186,468 22,745 7,369 30 .114 16.2

Gross Estate $300,000 and Over 29 .069 17,846 988 18,1134 64~1 1

846 731 86 .4 Gift 250,477 Cm 3,1111 13.073 5.1

731 714 97 .7

975 955 97.9

821 815 99. 3

1,248 1,220 97 .8

138 119 86. 2

88

112,550

1 .216,755
90

Table 3-Accomplishments vs Plan, FY 1975

Revenue Agents

Desys Returns Percent

of Plan

Tax Class Plan Actual Plan Actual Desys Returns

Individual, Total 2,805 2,896 303,300 355,170 103 11 7

Form 1040-Standard 2 31 385 6,967 1,550 1,81 0

NB under $10,000-itemized 172 153 26,010 34,463 89 133

NB $10,000 under 50,000 406 394 61,320 79,507 97 130

NB $50,000 and over 370 434 41,625 45,313 117 109

6 under $10,000 531 470 50,155 49,067 89 98

B $10,000 under $30,000 602 631 59,190 71,710 105 121

6 $30,000 and over 723 783 64,615 68,143 108 105

Fiduciary 117 97 13,800 11,558 83 64

Corporation, Total 3,360 3,406 149,400 153,240 101 103

No Balance Sheet 53 44 4,160 6,207 83 14 9

Under $50,000 175 198 19,180 19,171 113 100

$50,000 under $100,000 127 163 13,260 16,230 128 12 2

$100,000 under $250,000 223 253 22,230 23,478

.

11.3 106

$250,000 under $500,000 243 292 20,660 24,223 120 11 7

$500,000 under $1 Mil . 259 272 18,860 19,760 105 105

$1 Mil . under $5 Mil . 596 558 31,580 28,115 94 8 9

$5 Mil. under $10 Mil. 192 171 6,720 5,184 89 77

$10 Mil. under $50 Mil . 381 330 8,315 6,306 87 76

$50 Mil. under $100 Mil . 144 154 1,685 1,542 107 92

$100 Mil . and over 965 972 2,750 3,024 101 110

Estate 571 577 36,100 40,591 101 11 2

Gift 52 56 7,700 9,955 108 129

Income, Estate and Gift

Total 6,904 7,032 510,300 570,514 102 11 2

Excise 177 180 62,500 74,493 102 11 9

Employment 223 231 72,500 81,250 104 11 2

Exempt Organization 198 218 14,919 20,870 110 140

Pension Trust 108 110 41,624 65,482 102 157

Joint Compliance 98 54 55

Special Enforcement Program 314 272 - - 87

Direct examination staff years .

9 1

Table 4-Accomplishment vs Plan, FY 1975

Tax Auditors

Desys, Returns Percent

of Plan

Tax Class Plan Actual Plan Actual Desys Returns

Individual, total 2,101 2,419 1,403,300 1,483,388 115 106

Form 1040-standard 155 172 187,175 213,942 ill 11 4

NB under $10,000-itemized 546 646 459,000 526,930 118115

NB $10,000 under $50,000 786 957 613,970 609,952 122 99

NB $50,000 and over 35 36 17,140 13,917 103 81

B under $10,000 460 465 100,150 86,322 101 86

B 10,000 under $30,000 77 109 16,915 25,834 142 153

B $30,000 and over 41 34 8,950 6,491 83 73

Fiduciary - - - 199

Corporation 26 18 5,500 1,649 69 30

Estate 38 37 7,600 8,357 97 110

Gift 11 9 3,300 3,118 82 94

Income, estate, gift

Total Z176 Z483 1,419,700 1,496,711 114 105

Excise 18 18 10,800 12.774100 118

Employment 3~ 35 23,400 29,683 95 127

Exempt Organization 17 10 2,931 1,298 59 4 4

Pension Trust 4 1 1,359 80 25 6

Direct examination staff years,
92

Table S.-Audit Recruitment-Commitments and Appointments, Frs 1973-197

5

Region

Revenue agents

United States

North-Aflanti

c

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

Tax auditors

United States

NoNh-Atlantic

Mid-Atlantic

Southeast

Centra l

Midwest

Southwest

Western

FY 1975 FY 1974 FY 197

3

597 3,376 1,372

77 512 272

34 492 220

143 491 22

6

30 206 14

7

27 596 16

0

25 529 il

l

261 550 23

6

1,150 Z031 50

4

205 350

94

53 403 4

8

228 305 10

4

130 8426

112 283 8

2

197

48

422 409 10

2

includes Estate Tax Attorneys and Valuation

Engineers,

93

Table 6 .-Audit Attrition-Revenue Agents and Tax Auditors, FY's 1973-1975

Region FY1975 FY 1974 IFY 197

3

Revenue Agents

United States 981 956 1,12

4

North-Atlantic 160 156 18

0

Mid-Atlantic 118 133 191

Southeast

Central

Midwest

Southwest

Western

010

Tax Auditors

United States

115 115 127

112 101 143

178 159 177

137 120 120

152 162 172

9 1014

484 512 382

North-Atlantic 64 81 8

2

Mid-Atlantic 59 76 5

3

Southeast 77 70

42

Centra l

Midwest

Southwest

Western 12

5

010

40 40

50

63 82 51

53 66 50

96 53

3 11
94

Table 7 - Revenue Agents and Tax Auditors (District Audit Divisions) I

Percent of Returns Examined

By Type of Tax

FY 1975

Estate 2.2%

Corporation 6.0%

All Othe r

Gift 0.6%

Excise 3 .8%

Employment 4.9%

Individual and

Fiduciary 81 .7%

Percent of Time Spent on Examinations

By Type of Tax

FY 1975

Total returns examined 2,265,425

Re'enue Agents and To, Auditors (District Audit

Divisions)-

Estate 5 .8 %

Corporation 32.3 %

Ail Other

Gift .6%

Excise 1 .9%

Employment 2.5%

OlherG.0 %

Individual and

Fiduciary 50.9%

Direct Examination Time

(Days) 2,674,594

Excludes S-ice Center. Pension Trust and

Exempt Organization Returns

9 5

Table 7 - Revenue Agents and Tax Auditors - Continued

Percent of Dollar Recommendations (Millions)

By Type of Ta x

FY 197 5

Percent of Collections By

Type of Ta x

FY 1975

Estate 10.9%

Corporation 57.1 %

All Other

Gift 1 .3%

Excise 2.0%

Employment 3.9 %

Individual and

Total Dollar Fiduciary 24 .8%

Recommendations (Millions) $5,13 4

Estate and Gift 1 .6%

Corporation 18 .0 %

Excise &2%

Employment 24.5 %

Individual and

Fiduciary 54.7 %

Total Collections (Billions) $286.2

_.i
96

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

Returns and Dollars, FY's 1973-197 5

Region FY 1975 FY 1974 FY 1973

Returns

United States 5,137 5,731 5,152

North-Atlantic

Mid-Atlanti c

Southeas t

Central

Midwes t

Southwest

Western

01 0

Dollar Recommendations (Millions)

1,122 1,436 82 8

797 703 67 4

633 683 74 4

559 686 747

683 868 977

602 625 53B

831 1,001 930

112 61 97

United States $3,421 .3 $4,220.9 $3,464.7

North-Atlanti c

Mid-Atlantic

Southeas t

Centra l

Midwest

Southwes t

Wester n

01 0

1 Regional totals do not add to U .S . Total

because of special reponing procedures for

large cases.

814 .4 1,241.1 573 .5

608 .2 370.3 507.2

396.0 385.0 326. 3

415.6 509.4 427 . 9

403.5 630.9 672. 7

294.5 394.5 224. 9

427.3 668.6 704. 2

61 .7 21 .2 28.1

97

Table

Large Deficiencies 9 ($100,000 and over)

Percent of Relationship to Total Tax (District Audit Divisions)

FY 1975

FY 1974

FY 1973

North

Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

U.S . by Year

By Region, FY 1975

74%

69% 1

66 %

EE60_58 % %

58 %

50 0/0

Total dollars

recommended

(millions)

$5,134 1

$5,84 7

$5,068

Excludes Serdca Centel . Pension Trust

and Exempt organization Returns,
98

Table 10-4ndividual Returns--Accomplishments In Relation to Plan IFY 1975

Revenue Agents

Region Planned Actual Percent

Direct Examination Time (Days)

United States 706,783 729,768 103

North-Atlantic 126,457 120,261 95

Mid-Atlantic 83,970 84,343 100

Southeast 86,181 98,799 115

Central 71,087 75,914 107

Midwest 93,253 92,474 99

Southwest 98,777 108,376 11 0

Western 143,782 145,914 102

010 3,276 3,688 113

Returns Examined

United States 303,300 355,170 11 7

North-Atlantic 47,300 54,142 11 5

Mid-Atlantic 36,300 42,131 11 6

Southeast 37,100 46,206 12 5

Central 28,400 40,126 141

Midwest 42,200 44,096 105

Southwest 41,800 50,298 12 0

. Western 69,200 76,953 il l

010 1,000 1,218 122

Table 11 .

Revenue Agents Accomplishments-individual Returns

(District Audit Divisions)

U.S. Activity

IFY's 1973-1975

Fiscal Direct Time (Days)

Yea r

1973

1974

1975

1973

1974

1975

Returns (Number)

Planned 100%

106 %

103%

114%

117%

9 9

133%
100

Table 12-Accomplishments In Relation to Plan Fiduciary Retums--FY 1975

Revenue Agents

Region

Direct Examination Time (Days)

Planned Actual Percent

United States 29,478 24,462

83

North-Atlantic

Mid-Atlantic

Southeast

9,726 7,767 so

3,097 2,102

68

2,415 2,203 9

1

Central 2,917 2,253 77-

Midwest

iouthwest

Western

010

Returns Examined

4,254 3,199 7

5

2,892 2,933 101

4,157 3,980 96

20 26 130

United State 13,800 11,558

84

s

North-Atlanti

c

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

3,900 3,455 8

9

1,400 1,133 81

1,300 1,204

93

1,200 1,019 8

5

2,400 1,142 4

8

1,400 1,454 104

2,200 2,142

97

9

101

Table 13-Examination Time, Returns and Doll ars-4ndivid ual and Fiduciary-FYs

1973-1975

Revenue Agents

Region FY1975 - FY 1974 FY 1973

Direct Examination Time (Days)

United States 754,230 586,660 529,107

North-Atlantic 128,028 97.487 88,572

Mid-Atiantic 86,445 71,378 58,565

Southeast 101,002 75,686 68,547

Central 78,167 66,025 61,841

Midwest6

3

Southwest

5,6 75,402 66,336

111,309 81,251 74,069

Western 149,894 115,815 107,030

010 3,714 3,619 4,150

Returns Examined

United States 366,728 311,267 265,27

6

North-Atlantic 57,597 44,120 36,29

7

Mid-Atlantic 43,264 34,963 30,08

9

Southeast 47,410 38,406 36,63

7

Central 41,145 31,394 30,11

7

Midwest 45,238 44,216 35,99

3

Southwest 51,752 52,862 36,256

Western 79,095 64,120 58,528

010 1,227 1,186 1,359

Dollar Recommendations (Millions)

United .States $947.7 $896.8 $873. 6

North-Atlantic 194.6 185.0 144. 5

Mid-Atlantic 116.0 96.7 106. 0

Southeast 155.5 129.8 150. 2

Central 93.4 81 .5 90.3

Midwest 87 .4 67.8 85.5

Southwest 96.8 102 .1 99. 1

Western 194.9 225.9 1 B4 .7

0109.28.0 13.1

Note : Dollars may not add due to rounding . - Individual and Fiduciary combined for

comparision with prior years.
I

102

Table 14-Revenue Agents

(Average Hours Per Return)

Individual and fiduciary returns by class and region FYS 1973-75

Class

Fiscal Years

1975 1974 1973

Total (individual & Fiduciary) *16.3 16.0 18.7

Form 1040-Standard 10 .0 9 .4 11 .5

Nonbusiness, under $1 0,000-Itemized 13 .6 11 .9 13.5

Nonbusiness, $10,000 under $50 .000 11.0 9.3 14 . 1

Nonbusiness, $50,000 and over 15 .9 17.5 19.5

Business, under $10,000 19 .4 22.0 21 .0

Business, $10,000 under $30,000 18.6 19.5 21 .2

Business, $30,000 and over 20 .9 21 .9 23 .4

Total Fiduciary 10 .3

Region

United States -16.3 16.0 18.7

Norlh-Atlantic 18 .9 21 .1 22 .9

Mid-Atlantic 16 .8 16.9 18 .4

Southeast 16 .0 15.5 _~7.8

Central 16 .7 18.2 20.7

Midwest 16 .0 14 .2 18.5

Southwest 15 .5 12.6 18.4

Western 14.5 15 .1 16.3

International Operations 22 .5 22.5 18.9

*Individual by class only for FY 1975, prior

years Individual and Fiduciary are combined .

**Includes Individual and Fiduciary by region for

comparison with prior years .

10 3

Table I S .-Revenue Agents (Average Dollar Recommendations Per

Return)

Individual and Fiduciary Returns by Class and Region FYs 1973-1975

Class

Fiscal Years

1975 1974 1973

Total (individual & Fiduciary) *$2,584 $Z881 $3,293

Form 1040-Standard 846 1,307 2,21 1

Nonbusiness, under $10,000-Itemized 2,917 2,023 1,912

Nonbusiness, $10,000 under $50,000 1,530 1,377 2,298

Nonbusiness, $50,000 and over 5,887 7,731 8,237

Business, under $10,000 1,565 2.236 1,769

Business, $10,000 under $30,000 1,463 1,941 1,817

Business, $30,000 and over 3,672 4,752 5,

Total Fiduciary 1,817 - -

Region

United States -SZ584 $Z881 $3,293

North-Atlantic 3,379 4,194 31982

Mid-Atlantic 2,680 2,765 31524

Southeast 3,279 3,379 4,101

Central 2,270 2,595 2,9%

Midwest 1,931 1,534 2,377

Southwest 1,871 1,931 2,733

Western 2,464 3,523 3,155

International Operations 7,487 6,777 9,664

'Individual by class only for PY 1975, prio r

years individual and Fiduciary are combined .

**Includes individual and Fiduciary by region

for comparison with prior years .

I-L
~i,

104 105

I I

Table 16 .-No Change Percent--4ndividual and Fiduciary--Ratum and Time-by Class

and Region-IFYs 1973-1975

Revenue Agents

Class

Returns Time

FY FY FY FY IFY FY

1975 1974 1973 1975 1974 197

3

Total (Individual& Fiduciary) *19 23 19 *15 14 14

Form 1040-Standard 23 34 34 15 17 1

8

Nonbusiness under $10,000 20 24 22 14 15 1

7

Nonbusiness $10,000 under 50 .000 16 27 17 12 15

14

Nontpusiness $50.000 and over 18 21 17 15 13 12

Business under $10,000 19 20 22 14 13 15

Business S10,000 under $30,000 18 20 19 14 15 13

Business $30,000 and over .18 20 18 14 14 1 3

Total Fiduciary55

Region

5 1

United States

.

.19 23 19

..15 14 1

4

North-Atlantic

Mid-Atlantic

23

Southeast

19 18 16 16 13 1

3

24 23 19 17 1

6

18 21 20 14 13 1 4

Central 19 21 22 15 15 1

5

Midwest 16 25 18 13 15 1 4

So_uthwest 21 30 20 16 16 13 -

Western 19 19 18 15 14 14

010 22 24 30 19 19

22

*Individual by class only for FY 1975, prior year

Individual and Fiduciary are combined .

-Includes Individual and Fiduciary by region

for comparison with prior years .

Table 17-Accomplishments In Relation to Plan-4ndividual Returns--IFY 1975

Tax Auditors

Region Planned Actual Percent

Direct Examination Time (Days)

United States 529,490 609,494 11

5

North-Atlantic 90,004 102,810 11

4

Mid-Atlantic 65,567 74,957 114

Southeast 78,220 94,621 12 1

Central 45,564 54,456 12

0

Midwest 64,643 .72,828 11

3

Southwest 64,998 72,571 11

2

Western 112,907 128,790 11

4

010 7,587 8,460 11

2

Returns Examined

United States 1,403,300 1,483,388 106

Noah-Atlantic 255,600 272,630 10

7

Mid-Atlantic 185,800 200,481 10

8

Southeast 212,200 214,977 101

Central 117,700 133,G64 11

3

Midwest 152,700 155,661 102

Southwest 156,200 162,467 104

Western

010

305,600 323,191 106

17,500 20,917 120 I
106

Table 18 .

Tax Auditors Accomplishments-Individual Returns

(District Audit Divisions )

Fiscal Direct Time (Days)

Yea r

1973

1974

1975

197 3

1974

1975

Returns (Number)

. Planned 100 %

Note : Individual and Fid .ol .ry oobined Ior IFY's 1974 and 1973

107

Table 119-Examination Time, Returns and Dollars-4ndividual and Fiduciary-FYs

1973-1975

Tax Auditor s

Region IFY19751 IFY 1974 FY 1973

Direct Examination Time (Days)

United States 609,591 513,637 418,923

North-Atlantic 102,820 88,025 79,259

Mid-Atlantic 74,962 69,766 50,169

Southeast 94,625 73,261 51,181

Central 54,464 49,483 52,105

Midwest 72,892 .65,605 55,229

Southwest 72,573 66,727 47,896

Western 128,795 92,426 75,409

010 8,460 8,343 7,676

Returns Examined

United States 1,483,587 1,375,418 1,143,31 3

North-Atlantic 272,651 241,611 232,840

Mid-Atlantic 200,493 180,853 143,185

Southeast 21 .4,986 223,104 156,10 9

Central 133,070 . 140,174 140,896

Midwest 155,744 156,319 144,44 5

Southwest 162,475 191,953 118,938

Western 323,250 224,069 189,568

010 20,918 17,335 17,332

Dollar Recommendations (Millions)

United States $325.9 $273.3 $248. 3

North Atlantic 60.2 54 .5 48. 6

Mid-Atlantic 42.3 32,7 29. 7

Southeast 49.7 46.5 37 . 9

. Central 25 .1 25 .4 26. 2

Midwes t

Southwest

33 .1 27.1 28. 6

33 .5 30.5 27. 1

Western

010 6

75.1 50.5 45. 2

.9 6.2 4. 9

i Individual and Fiduciary Returns combined

for comparison with prior year.

Note: Dollars may not add due to rounding .

7-
I

108

Table 20-Tax Auditors (Average Hours per Return)

Individual and Fiduciary Returns by Class and Region FYs 1973-75

Class

Fiscal Years

1975 1974 1973

Total (individual & Fiduciary) *2.8 2.5 2 .6

Form 1040-Standard

Nonbusiness, under $10,000--Itemized

1 .6 1 .4 1 .3

2.4 2.1 2. 1

Nonbusiness, $10,000 under $50,000 2.8 2 .4 2 .6

Nonbusiness, $50,000 and over 3 .7 3.3 3.6

Business, under$10,000 7.8 8.3 8. 1

Business, $10,000 under $30,000 6.3 5.9 6.0

Business, $30 .000 and over 6 .5 6 .1 6. 5

Total Fiduciary 4.5

Region

United States **2.8 2.5 2. 6

North-Atlantic 2 .6 2.6 2. 3

Mid-Atlantic 2 .7 2.5 2. 4

Southeast 2.9 2 .2 2 .5

Central 2 .8 2 .6 2.6

Midwest 3 .3 2,7 3. 0

Southwest 3 .1 2.3 2. 8

Western 2.8 2.8 2. 9

International Operations 2.4 2.6 2. 3

'Individual by class only for FY 1975, prior

years individual and fiduciary are combined .

-Includes individuals and Fiduciary by region

for comparison with prior years.

10 9

Table 21-Tax Auditors (Average Dollar Recommendations per Return)

Individual and Fiduciary Returns by Class and Region FYs 1973-1975

Class

Fiscal Years

1975 1974 1973

Total (individual & Fiduciary) *$220 $199 $217

Form 1040-Standard 143 120 143

Nonbusiness under $10,000-Itemized 172 156 172

Nonbusiness $10,000 under $50,000 230 203 225

Nonbusiness $50,000 and over 562 801 1,053

Business under $10,000 472 533 507

Business $10,000 under $30,000 414 476 470

Business $30.000 and over 691 916 1,293

Total Fiduciary 1 .39 6

Region

United States -$220 $199 $217

North-Atlantic 221 226 209

Mid-Atlantic 211 181 207

Southeast 231 208 243

Central 188 181 186

Midwest 212 173 196

Southwest 206 159 228

Western 232 225 238

International Operations 332 355 283

*Individual by class only for FY 1975 prior

years individual and fiduciary are combined .

-Includes Individual and Fiduciary by region

for comparison with prior years .

I

_J__11
110

T

ble 22 .-No Change Percent-4ndividual and Fiduciary-Retums and Time by Class

anda Region, FY 1973-1975

Tax Auditors

Class

Returns Time

FY IFY FY FY FY FY

1975 1974 1973 1975 1974 1973

Total *24 29 27 *18 20 20

Form 1040-Standard 33 43 36 32 37 3 4

NB under $10,000-Itemized 21 25 23 16 19 18

NB $10,000 under $50,000 24 29 29 17 20 21

NB $50,000 and over 40 39 31 28 28 2 2

Business under, $10,000 21 21 22 18 17 18

Business $10,000 under $30,000 17 16 16 13 13 13

Business $30,000 and over 27 25 19 20 19 15

Regio n

United States "24 29 27 **18 20 20

North-Atlantic 26 25 26 20 20 21

Mid-Atlantic 26 33 29 21 24 23

Southeast 22 29 23 17 20 17 .

Central 22 23 30 16 16 2 1

Midwes t

Southwest

stern

21 29 27 15 18 19

28 41 29 21 27 2 1

22 26 24 17 19 19

010 28 30 34 19 21 24

1ndividual by class only for FY 1975, prior

years Individual and Fiduciary are combined ,

*

-includes Individual and Fiduciary by region

for comparison with prior years .

Table 23-Corporation Returns-Accomplishments In Relation to Plan FY 1975

Revenue Agents

Region Planned Actual Percent

Direct Examination Time (Days)

United States 846,672 858,435 101 .4

North-Atlantic 186,314 197,193 105.8

Mid-Atlantic 129,956 127,554 98.2

Southeast 84,853 82,759 97.5

Central 97,043 97,756 100.7

Midwest 130,367 129,662 99.5

Southwest 104,342 87,875 84 .2

Western 106,424 127,745 120 .0

International Operations 7,373 7,892 107.0

Returns Examined

United States 149,400 153,240 102.6

North-Atlantic 27,100 27.470 101 .4

Mid-Atlantic 22,200 24,555 110.6

Southeast 18,900 18,162 96. 1

Central 18,800 19,764 105.1

Midwest 23.400 24,038 102 .7

Southwest 19,700 16,911 85.8

Western 18,700 21,672 115. 9

International Operations 600 668 111.3
112

Table 24 .-Revenue Agent Audits of Corporations (Average Hours Per Returns)

Corporation Returns by Class and Region FYs 1973-1975

Class

Fiscal Years

1975 1974 197

3

Total 3&2 49.1 47.0

No balance sheet 25 .6 32.3 30.9

Under $50 .000 19.3 13.2 16 .4

$50,000 under$100,000 19.0 15.9 16.0

$100,000 under $250,000 19.3 19.0 17.5

$250,000 under $500,000 21.6 22 .2 22 .3

$500,000 under $1,000,000 24 .5 26.1 25.3

$1,000,000 under $5,000,000 35 .4 39.4 37.4

$5,000.000 under $10,000,000 60.7 58.0 58

A

$10,000,000 under $50,000,000 90 .4 91 .5 73.2

$50,000,000 under $100,000,000 147 .0 175.7 172.5

$100,000,000 and over 478 .1 620.7 564.3

Region

United States 38.2 49.1 47.0

North-Atlantic 49.7 54.6 48.4

Mid-Atlantic 35.4 39 .1 50.0

Southeast 30.0 40.0 35 . 7

Central 36 .7 52.2 52. 1

Midwest 37.1 50.4 48.2

Southwest 33 .7 53.0 42 .2

Western 38 .6 50.9 49 .3

International Operations 65.9 53.0 79.2

113

Table 25-Revenue Agent Audits of Corporations (Average Dollar

Recommendations Per Return)

Corporation Returns by Class and Region FYs 1973-1975

Racal Years

1976 1974 1973

Total $19,078 $28,951 $25,207

No balance sheet 13,061 11,545 6,984

Under$50,000 1,828 1,892 2,275

$50,000 under $100,000 1,323 1,596 1 ;6

1

Class

$100,000 under $250,000 1,821 2,141 2,206

$250,000 under $500,000 2,240 2,490 3,36

2

$500,000 under $1,000,000 3,874 3,916 4,708

$1,000,000 under $5.000,000 7,395 9,639 9,331

$5,000,000 under $10,000,000 20,068 23,859 20,581

$10,000,000 under $50,000,000 43,553 39,913 33,85

5

$50,000,000 under $100,000,000 93,628 93,580 87,031

$100,000,000 and over 622,137 673,198 588,63

7

Region

United States $19,078 $28,951 $26,20

7

North-Atlantic 25,572 32,614 23,883

Mid-Atlantic 22,863 16,833 29,17

3

Southeast 14,763 24,949 17,740

Central 20,1 D4 33,046 24,85

5

Midwest 15,836 33,891 31,24 1

Southwest 14,188 28,404 11,91

4

Western 15,983 31,048 31,71

7

International Operations 40,593 31,654 38,046
114

Table 26.-Examinaflon Time, Returns and Dollars--Corporation--FY9 1973-1975

Revenue Agents

Region FY1975 IFY 1974 FY 197

3

Direct Examination Time (Days

)

United States 858,435 662,T78 652,17

8

North-Atlantic 197,193 160,502 151,51

2

Mid-Allantic 127,554 94,151 96,635

Southeast 82,759 60,448 56,31

4

Central 97,756 79,239 84,571

Midwes

t

Southwest

Western

129,662 102,168 99,14

5

87~875 62,065 63,03

4

127,745 98,831 96,45

0

International Operations 7,892 5,377 4,52

0

Returns Examined

United States 153,240 134,083 121,737

North-Atlantic

Mid-Atlantic

Southeast

27,470 34,337 21,089

24,555 21,012 16,46

8

18,162 13,777 16,51

0

Central 19,764 14,774 17,47

9

Midwest 24,038 18,008 21,37

4

Southwest 16,911 12,565 11,47

3

Western 21,672 19,115 16,92

9

International Operations 668 495 41

5

Dollar Recommendations (Millions)

United States SZ923.4 $3,881.9 $3,06&

6

North-Atlantic 702 .5 1,119.9 503.7

Mid-Atlantic 561.4 353 .7 480 .4

Southeast 268 .1 343.7 292.9

Central 397 .3 488 .2 434 .4

Midwest 380 .7 610.3 667.7

Southwest 239.9 356.9 136.7

Western 346 .4 593t5 536 .9

International Operations 27 .1 15.7 15.8

Note : Dollars may not add due to rounding .

115

Table 27-No Chan

0 P'arcent-Cor.

poration--Returns and Time--by Class and

Region--"s 1973-1%76

Revenue Agents

Returns Time

Class 1975 1974 1973 1975 1974 1973

Total 28 26 26 16 13 13

No Balance Sheet 31 28 30 20 22 21 U nd er $50,000 38 29 34 32 34 3 1

$50,000 under $100,000 34 29 32 31 30 2

7

$100 .000 under $250,000 28 28 29 27 27 2

6

$250,000 under $500,000 29 27 28 27 25

24

$500,000 under $1,000,000 25 26 26 25 23

22

$1,000,000 under $5,000,000 24 24 24 18 19 1

9

$5,000,000 under $10,000,000 19 21 21 12 16 1

5

$10 .000,000 under $50.000,000 15 16 12 8 11

9

$50,000,000 under $100,000 .000 9 10 12 3 6

5

$100,000,000 and over 5 8 7

233

Region

United States 28 26 26 16 13 13

North-Atlantic 26 20 18 14 12 1

2

Mid-Atlantic 31 25 25 17 15 1 2

Southeast 27 29 23 18 14 1 4

Central 32 30 30 16 13 1

5

Midwest 21 24 29 14 11 1

0

Southwest 32 32 29 19 12 1 5

W astern 26 27 28 14 15

14

International Operations 41 35 32 25 22 17
116

11 7

Table 28-Estate Tax Returns

IFY 1975 FY 1974 IFY 1973 FY 1975 IFY 1974 IFY 1973

Revenue Agents Tax Auditors

Total Examinations 40;591 40,143 34,443 8,357 7,586 5.956

Total Direct Examination Time

(Days) 145,306 141,542 144,319 9,331 8,476 8,460

Total Dollar Recommendations

(Mils) $546.9 $498 .4 $612.6 $11.8 $10.3 $7.6

Average Hours Per Return 29 .9 30.2 31.7 8.0 8.7 9 . 5

Average Dollar

Recommendations Per Return $13,472 $12,415 $17,787 $1,408 $1,353 $1,279

No Change Percentage 14% 14% 15% 15% 18% 18 %

Table 29.-Glft Tax Returns

Revenue Agents Tax Auditors

FY 1975 FY 1974 FY 1973 FY 1975 FY 1974 FY 1973

Total Examinations 9,955 8,876 6,857 3.1-18 2,594 1,98 0

Total Direct Examination Tim e

(Days) 14,195 12,367 11,309 2,344 2,265 1,97 4

Total Dollar Recommendation s

(Mils) $64A $65 .9 $77.7 $2.7 $2.9 $2. 3

Average Hours Per Return 10A 10.9 11 .4 5 .7 6.6 6. 5

Average Dolla r

Recommendations Per Return $6,465 $7,424 $11,337 $860 $1 .118 $1,163

. No Change Percentage 30% 28% 28% 34% 31% 36%

Table 30-Exclse, Tax Returns

Revenue Agents Tax Auditors

FY 1975 FY 1974 FY 1973 FY 1975 FY 1974 FY 1973

Total Examinations 74,493 72,405 80,475 12,774 15,943 16,14 5

Total Direct Examination Time

(Days)

Total Dollar Recommendations

(Mils)

45,336 43,771 45,189 4,421 4,158 4,456

$102 .1 $95 .5 $83.3 $2.2 $Z4 $2 . 7

Average Hours Per Return 4 .6 4.8 4.3 1 .6 1 .4 1 .2

Average Dollar

Reccommendations Per

Return $1 .370 $1,319 $1,035 $171 $151 $16 7

No Change Percentage 35% 34% 34% 19% 20% 17%

Table 31 .-Employment Tax Returns

Revenue Agents Tax Auditors

IFY 1975 FY 1974 FY 1973 IFY 1975 FY 1974 FY 1973

Total Examinations 81,250 60,842 55,828 29,683 15,690 15,176

Total Direct Examination Time

(Days) 58,094 40,669 36,533 8,698 5 .716 4,469

Total Dollar Recommendations

(Mils) $185 .6 $99.9 $69.5 $12 .0 $8 .1 $8.7

Average Hours Per Return 4 .7 5 .0 4 .8 1 .6 1.8 1.7

Average Dollar

Recommendations Per Return $2,284 $1,642 $1,244 $403 $519 $573

No Change Percentage 14% 18% 18% 7% 8% 9%

I
118

Statistical Tables
I

12 0

Table 1-Internal revenue collections by sources and

by internal revenue regions, districts, States, and other areas

(in thousands of dollars )

a,. . .. . *gion,. diltrichi .

St.,.. . . .1 .1 .1.

.. I(S .. ..

by single dii

Imcilcii I, p,rentheati total, ,

'IneOlh I Slatin, Iman at be, .

.1 We)

Total C.rp-

=1. I..

.01-ti I:clll*

Indilid-I i1comi, Hild emplayinall IxNIrth-40lifflic Region United Spite ~ Met ----- ----- ------ . . . . . . . . . . . . . . . . . ... . .. ....

Aituih ---------- IS- to) oil,,)

Maine) - -----

lialuketchusel . ... . .. .

B"ookly, . . . . . . . .

. . .. jSee(c)pmo,x)

Buffalo ----- ISee 1c) bel-)

lulfingtIn ri . :~c~

.M*,d

._ I.. n :. . . .

.an p,loxx,h.

Pon-inh Nex, Hamps re

1-ido Rxl,,-pW- : : :-, 'Inod, Wand ) --------

Mid-Atil tq

,

an

. .

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

INM_ayland & D .C .)

.me . J.-Y)

Ph'Iladelph e . . . . (Sao (a) bei-)

R,c bu,gh ISm. 1.) W-)

.,,hl*ndon : 1 ,,,,.n

.ingt

. . ) . . . . . . . .

South. .. I Region _ . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Allai. . . . . . . . __ --- (Georgia )

Bi, .,nghSin . . . . . . . .

Columbia . . . ~2,oh --- ((Stutn("

Gnienrigm. ----- (North Caro

;"`.: : :: : : : :

I c k

:.h - --------- Muluiloi

J k:c -ill. . . . . . . . . (Florida) . . . . . . . .

N

'i" T

inth" . - --------- I an-.-)

Region . . . . . . . . . . . . . . . . . . . . . . . .

C ncinnal - ---------- IS.. (it) b

C;mmand (See (it) b

::=~

Detroit -------------- u m(Michigan) .1 ----------

Indiana,— r 0 1 : I..,",n,,,)Y, ----

m

.

At Pmkm .lpu,g . . . . . . (Welil Virginia)

Id.. . Region ___. . . . . . . . . . . . . . . . .

Atundoxin ISulh Dakota Chicago )

Sea to) balml --------

Des Mothers

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

F* -

=Ml,hl Iti

M=.kSW . . . . . . .. (`A.

nan)

Oman - -------------- INeonnike), . . . . . . .

S"

L-.-- IMhux-rit . . . . . . . . . . . . . .

SI, paul kuh-mon.) ----

So

Springfield jSehejb)txIoxi,)

ulthaten flegio. . . . . . . . . . . . . . . . . . . . . . . . .

Albuquerque . . . . . . . . I Nanx Mexico) . . . . .

Au0n . . . . . . . . . . . . . . (Sea (f) Wim)

C=nn!_ :- : : : :~ : : : : : 1:4,rmng~..) ------

__

D 9

. :. . . . . . . .

Di-R . ------- (Col-o')

r1min *Ck . I'I~k~ran=,

Oklahoma 'I! Wi. h ------ CkIai

ty-lim R.9icui --------

Anchorage _ -------

Boure Hallin. .. .------- - .. .. . .. . . . . (Idaho) ----- .

IM-le.)

Honolulu .. . . __-- 11-1-aii) . -------------

---- (Sea 1 .) Wm) . . . . . . .

P. land ... .....: ::

: j01,.,.

n

re

m

R. - ------------- lw- .) --------------

.11 = IU-) -------- ------

San See S)

offic: of lrw;r~w~i

Puerto Rico ------------------ --------

,her

.

: ------------------------------------

Federal I . d.post - - --------------------------

Gnofine ublic~linq oil, and incen ,

FICA Credit.. . . .. . .. . . . . . . ---

T,n"" tt ii .* . ad . 'g,

GhnZin WPG.I hm~ I F`

be _ . . . . . . . . . .

Clearing lip .. . I for E., My hikes-

&,a,_

lu,

and pil-ke Force an d

Pheardernmal Elexporh N-Y -------------------------------- Fund - ----- --------

Cak, ...i* ----------

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

No. York

to) Ohio _

Penin"I.m .

( I; Tax ., -. . . . . . . .. . ..

I""',at ithh,ld oil

.ithh.ld id..g. Railroad Urenabloy .

Total :.d exan . un,i .... hatne, am

anpl.y. due. any in..

.am an..

ho.p .1

41) (2) (31 (4) IJ-D (at qr (a) (7)

223 .1122.726 45 .746.560 22S .S40 .246 37.712.721 1.616.143 I .M.OW

552 . 73.976 10 .679,678 41,901,3 5.09Z645 36,466,807 sa.oog 273 .543

I'S

255, 38 2,517.418 200,562 2,297,269 5.492 4095

111):'12 1 03,9272 625,911 132.279 482.593 6.758 4.281

7,622,046 1,W2 .161 6,143,386 863 7" 5 .2W 074 9=6 40.242

5,370,Mg 484,1198 4 .493 .372 933:526 3

.

513,'619 18,930 27:289

4,848 3,9, 275 3 .621 7613 1 08 3,865,823 509,373 3,351,045 278 25128

:231 276,149 $7,571 2162M 462 1 no

5 .9a6.49I

1S .1 11111 .30:2~g I I 411,417 741,891 3 .615.M2 22 313:4.

21 .171 " .325 58 255 :711 7.977 .342 1,416,713 16,:20 518 26,538 13,5M

84 .943 ,0011171 75 :. 109,512 : 5 3905

:2M,897 169,997 10 27.475 191 7,030

43 13,625 6 I 1 .12 ~093 33.754 .528 4.923.558 211,011 "123 . 13,299 1

7103' 606 .592 6,607,594 854 .256 5 .537,690 '90, 838 2-:0,130

11 .083:338 2.6031,998 8,406 .206 1,375,339 6 .972.340 ' 1' 52 .423

10,351,892 1, 309 1 6 71 432906 11226 .495 1 .180609 1:755 067 242J 4' 7

7 15 ~, :, . 066694 :.7~11 .71 65376 086 7 .170 24,05621

503 597 9 05 741,061 2,816 89 79.846 21,961 719

1 465890 312:0M ~M5:461 118,526 930.761 1') 6.173

2? :897.685 3.728,820 21

.387

. M

4.719 .054 18,440.997 73.411

1

54 3B

784 l9a 615213 3,785,990 61 S:.61 3:136 301 3 .885 27:1111

2 684 1 .875,323 269 :2 07 3 17 5 26 1 5516 .3 6 2.125 .656 4 DO 1 689:306 2,0

.302 1,551 :007 284,616 1,263,5011 178 1 2

9W3 87BA93 3 .722638 650,337 3.04 .986 399 2 :7067

1 167.302 176263 94 .112 276.681 6571,841 425 '11 , I

7,875.357 908:476

6~

445,613 1 .855 .663 4,4 2.509 66.355 41 . A

3 51 1,N3 509,719 4 614,256 2,179a .547 144 20.21

43,91114.422 6,152.282 31an j-81 S2182 4 9 .660 .147 29,081,"? 111 .072 in In

1 .154,175 4,632 :995 667 :17 3935414

"3 30

:

'02

N'" 480 1,616.029 6,535700 937 78'5 751,

941

to NZ : : ..596 47.379

14,77"74 iS96,637 12

'066

.071 1.215,663 10.760,332 21 .780 68,296

;.7 7.13: 6 908 :551 1,975 24,936

1 . 1 "No ~4 4 48,529 12'"

6:~l 95' I

3 , 4' 14 08M177 So 08" :438 W5

1260:3M 286.9774 931,31 2 24 466 680,705 as 6

46.64 440 7,546.9119 36 .133 .761 Go 29.32BA69 513 .475 21

6 :133

475,033 52.079 404,206 159 :4 1 242.634 3 2 .1mG M

18,270,173 3,111:1 14,053,035 1 ~766 339 12,007.996 1811 .035 90,665

2.857 .979

.

. 259 22 7 .515 762.741 1,491,710 733 12,33,

554 67

7

.748 W843 465.127 203 .615 259 2" 2:234

422,021 087:1031 4 609.451

3.5

S :is .785 15245 1 .- 26945

2.01 .212 34 60 .946 417 .752 W:Bgs 74.369 7.931

7:18:. 0 17, 182

5 .

. 744,383 809.861 4,802:04 97,a97 34.555

149807 1 .10iij" 4,794 .022 631 .507 3.989738 146,451 26,326

~3:503 .986 4984N 2,114 3ll:1 I

1

~742 714

1

12 4,810 13.488

2

1

42 WS 5.189,446 21 .1 1171 "

.2, :771 .:1

a that On 45.00a 1310.651

700,186 58:029 623551 137 .856 .481 .98 30 3,768

6.835 W4 6418 20 6 .132 91* 1 .367,018 472 .340 7.188 3T365

3" :612 380171

.9

:.7 1 go'nut 159-182 7 1,04

7212298 1

4 14

.2" :569 5.379,973 1,381 .765 3,943A78 19,929 34.40

,:1 69 11,4 ~1,141 1:N o:71 476.N3 3,532,686 18,642 21.5

2' :!- 66 01 947 334,379 676.363 849 7,356

3.2.7,289 053

2

58S 673 625,452 942

15.8

4 ,

:500 1,761 57

3361 508 515. 0 2.123 .770 496 :4" 41 029 154 .14,112

2:498'

372 1 1 NZ

5 485:366 Rw 22 692346 56 98,403 10,816

41,903 5" :65'432 623 31.621 :11K5 6 .1m 7 4 27.114= 135,201 190.616

.703 43

.

43' 4

678 57:971 428 .424 2=

851,295 148,696 710,228 0:638 54" 47 4.575

514 .893 47773 V7

.1 1

05 864 278 . 12 596 2

.

:1.4

1,087 .520 244~506 617.459 142A58 670118 -------------- -

1 1

:039.01 5 2.3 1 0,037 12691,096 2 . 94

.914 10~41

5,653 mi 79:809

1 7 9 .361 149.839 582 668 321:741

1

4 :20 .354 V9 10.293

2620,124 2 395 .005 1: 127 !iSil : 4 M6, 279 1 1 .315 13,797

684:

1

.7

702,93 65,18" 588,6`46 129,890 454962 3

971,361 142,411 799 ~ 1316,218 656.632 1,365 5418

114 2S, :470 :4.S41 1 :1 1

.324

9910.119 1.713,965 8, 053721 129,792 52'"0

5. 7W 3 1 Go's 0 2 .705~14 371 1 1

1 .354 .U9 132.576 11.1111122NO

. .

: 9" 894.13111 4~li

406 .106 2.3n 289 996 14466 267:380 ----------- j .-jjj

948,423 130 .10 791,2214 159,478 626 755 499

547,794 37"13 122.644 ------------ --- 62A75 22,170 17,599

5OI .9D5 30,11,10 471,064 16 47 .064 ----- - -----------------

:1 .001 . . . . . . . - ------

61 .496 ---------------- .498 -------------- 61,490 ------------- -- --------

j62 : : : : : : : : : : : : :: : : ------------ jj.-j~

31 57

T~ for Starthey not Showen allayl

28 .510,065 3~04 .039 22.se 1,215 3.9011,879 1 It:469.374 130,513 132 19

21,T74,159 3 .558,295 16.698,7n 2,4111 .117

1 3

M

V11

122 .945 104 15t

.79 8337~203 211,873,955 3,060 NZ 51 246 ISODS6

`919a .3811 2 1100,204 13 . 1 68 .695 1.605 61 354

38

17 : I I ". ", :699 77:400

2 J99.602

1

17 .697. 01 2 . 14.OM,211 IM14,375 ii .a4i 257 1M 84050

16,047.962 2.882 .T76 11 .512AS3 2.745,753

S

.WS218 211131 71 . 766

12 1

Table 1-Internal revenue collections by sources and by

internal revenue regions, districts, States, and other areas

-Continue d

(in thousands of dollars )

Internal -thrun, reguo- district,

.

states, am other anbut .

(state.

hilif,healled by ilaglix district, Eel IS Gift

Indicated In Viinenth. ... ~ total. tax, tax

_ Of ce but) far Stral State. sinchan at W~

(61 (9)

United Spite .. total .. . . . . . . . . . . . . .

..312 .657 375,421

alonti-Abimtk, Ransil on . . .. .. ...... _. . . . .

. 819,959 7O.W 9 Albany ---------- Sea c) below) ---- 31,610 844 A.gu't . .

80 .1-

. . . 940

'20996 .,Go t

bit- 1

52 562

'ro" Sere Ic 903 b.1-I :::~ 8919 :3 54:723

I"ln,l,n Hem hach Ord C----- 1,.7orn,.~ . . .. .... 6.620 .,M

. . . . .

. 97810 8

.256 Manhattan ---- =I.1aba;l*,-,ha 2

Portsmouth

32~7111 315

Pro

1

4 57 1 216

-idence . . .. . . Rhod . . . . . 14,705 762 611,1-Aflantic Rego - ----- . . . . . . .

Balti in

. 550.535 60.868

12 2611 1 Nimark 1 39,889 ':0..

Pi;iladhalphub (Sao (0) bejo,~ 131 :21 1 1 00 ow : : : "2:1 1

' ' ' -- )

.... ... . . A"' r'Sit ) pal 54 W5 wirmcmd :::: I~Irgjln-iSul

Wilmington ------ (Delaware)

74799 4 .430

auto .. I

Fl

.gi- --------------- -------- 29,438

1 .862

Atlanta - . -------- IGS.,gi .)

--------- 541,653 43 .976

Birmingham -

.-- Aunia-) --------- 182:717 2

"

...

. 9.

' :4 Coluill ut-- 41as

Grathawn, :

: ---- 1101ln Clrg~1.11)1 27.768 1,798

J:.".n

No. a, _ . :

: 65,447 4,997

J c ------ 23

.7" 2S23

nio- FI ii 283.076 21,712

smille

. . . : I, .Inr.

. 49

.M 3,211

Cermi`SI 019 - -------------------------- .27,010 33.002

Cinc nmti 11 labe:mx~ _ ---- 87.787 4421

Clexeland SL

I

Detroit ---------- (M,chiganI -------- 91,937 10,540

Indianapol

. 118,403 8,730

K,i - ---- lindiami ---------- 70.378 4.TrO

Lou-Ille .. ------ (Kentucky) Wl V -------- 40~972 3,196

Set iginiat . . . . 17.5992 1 .3 1

Abardee

- -------- ---------- --------- "99.24 50,047

Chu (South Dakota) ---- 485 59 9

C:F,O - ------ ISmallb)bolow) -- 2M,059 15.403 D. chn- ------ lio.a ------------ 69 .462 4.073

Fa,,,go ---------- (North Dakota) ---- 11,950 1,086

Mi-.k- NW.II

ornah

. pl.*~Iin) 711 . 4 :4037 1

39 .432 3 n

St.

P-1 -------

M;np, ~ :_ ::

: 92662 1:3~

Springfield ------

mixi I

W,581

'082

7

h (Sea (b) below) . . . . 74,185 3 04

an- Region __ ---------- . . . . . . SOBASS 72 :43M Albuquerque ---- INS, Mexico) . .

. 1

:64 1 Auld.

S. --- 11.558

146.523 2.128

=nh

. 47. .19i nl~1)1 -)

8.402 11,777

Dannin 122,663 6.297

itt 1.14`- ---- 3 ~612 0,14-

Little Rock ------ lArk-il --- ...

. 21,309 2.QO

Nenx Orrimen . .

. --

j .1*uJ=, :::::::: -.753 S:.,

Oklahoma City In.

Wichilm ---------- (Kantue)

---------- 5`1,989 3 6S2

W I . . Reegle,- ------------------------

49,859 3 .849

Anch-9. . . . . . . (Alaske) ----

B01" ------------ (loan .) . . . _: : :: :: 14,'17595 193

Helena ---- M 454

1 919

-u" -- 0

.55 :4 2

1H

: : : :-- =7,) 5 236

phoam, -- : : :- 1=0("Itbillme)

- : 211221 8347

Portland ------

. . . . . :

: 39,870

2

'100

i0re ..) ---------- 34.724 3 .032 Ran ---------- N..d .) ---------- 15.1.6 4,339

Salt Lake City . ---

I

S F, (Utah) ------------ 0.605 2,386

an 'renculco (Sea W., hIs), bati-) 246276 11 .690

saam - -------- ghei 57,081 8 .235

Offic:noof tRitermitio int ------- 1111.1175 41112

Pu I - -------------- ------------- 373 8

01m,- ------------ ----------- - -------- 18.502 394 Undis Hooted:

Foo-al t

I!, depolsits - ------------

G-1.1-ne u . .ling oil, and a.-

total

(to. of

column,

11 . 26,30,

36 41

.Wd Si

Alcohol ....

Im,

Total parted

cal- A.U.

(a- of Total Iturtied D.-Sti . - fic

.,

Occupa.

column . by Ilim . tiamid I- Other I12,18 Cuba,

and 22) .1

1,0) (11) (12) (13) ho m (14) (15) (10) (17)

16,647,741 5.350 .41511

1,02.196 611 .673

10,717 561

3 10,147 2 .919

lo.oo2 173,705

1 95:365 "

:

1 .1

D2 067 42764

2,836 so

327,143 128,205

893

24 :713"S "2 .j%

18.622 12.921

2 .626.602 ess.m

454 .213 299,977

4".246 264 .073

54

412' :o'

176,615

967 9

70G,246 51 '49 :39469

11:2

.1

56

~"n 392 306 32' .1193

: (135 42276

'43

719 2 :854

25..8

1 .324,78 6

22.660

219,480

3.42' 134'264

:

87

2.

740,271 525

"381 :3'2

.

1 .306 .285

2.301123-M.402

8 .663

SUMS

42:671

14,74 3

301 30

96150

513918

168582

28202 1

2

.

202

:527

13

4'

.8

. :

.1 6

26,484

448,796

251 .061

53,003

77,896

363,65B

78.357

2.014.524

11 .436

7,2n

"7 :138

069

7 1 :

450

14823

59 .805

9 .016

16 .126

938 .918

202,M

121 .W

113,352

8 .095

3,11,115.162 Me 513 3 124 .643 221155 13.329 SIR

473,435 224:092 245 .QI LOSS 2.263 a

193 ------------ 3

. . . . .

. 191 1-)

2 .8024

------ Z~ 'Z= 2,724 ---ii 52 . . .

ISB,15 71,735 798 4

7.SD4 7089

41 --------------------------------------

127,646 ----- ------ 127 .090 __ 2_ 67

171 so 138,886 31 323 5"

00 -------- 1 :357 13

81 ------------ ------------ ------------

06 .990 69

274,926 69.422 '20" '2 .422 514 '3 1:*

1 2,017

'12

125 8 90:5 2337 7 "10 1265

81,455 ------------

00453

an

23,985 ------------ 23,762 162

52 -------

112.021 49 .437 61,476 76

10, 236 . . . . . 9.960 67

2 .89 i

DWIJOW lk,inta I. ...

2 - ----

131 ------------ 5

. . . .

447 1')

4

-----------

288

401

37

so

2,127 to

4

50 7

604 2

469 57

al ----------

52 -------- -

$77 ISO

159 59

56 38 111 14

56 -------- zz

47,609 165 ------------ ------------ 109 ------------

255 148_---------- 57 ------------

122.162

1 90.1 "

. 583.347

237.S29

50,831

13 7; 1

2

.

:4

S

693 .548

5,308

819,377

76

189,225

865

132

IN

.208

5.724

155

413:"M

226505

271 '49 . 9

7&'31

43

45 .812

109 .997

5113

4D .598

245

438

789 .631

122

95

2221

3'i95

199-85 4.0328

Is

.

22075

32

457 .026

43,15

10DA52I

52 .904 46,866 5,045

64

19 353 22

45,752 --- . . . . . . . . 45.674 . ... .. .

. . . . . 78. . . ..... . .

1,442.372 157.651 1,274 .635 11,375 1 .6511 . 53

I&B

38

.763 107,342 ,Igo 234 V) .We

------27- 10,684 152 431 ---------

2 447 129:970 13D .161 727 636 53

2 . 874 __ ------- 264,M7 4 .323 2M. .. . .. . . .

679.IM ----- ------ 676,986 1 .957 130 ----------

5.238 ------

kni

1:1.1

450.776

~n -.6i

as 33 -------- . iii

5I_ _

182,282 45, 1 5 5 1 35A , I

. 5 ---------

I&

mi --- -- --- 12, ------------

115 56

6,872 3 122 .599 2.360 17

__ ------------------

2 1 21 45,116 goal

16 :1"16

~2

4 :3So 1 2.513 130

105,876 ------------ 193S03 1

W.009 35.109 23 .493 4

5 1

.741 1

40 ------0.-eili 3

.170 ------------

213011

35 ------

ISO ------------ 2

140 ------------

79 ------------

31,230 12,510 1SA34 ----------- j

105 ~ ------

328 ----------- 23

519.225 104 .433 411 .0998 ' 1,667

117 17

2,190W -----------i ------------------------ 2,106 7

2,866 2,679 It. 4

134 .079 358,45 97 .401 ISO

,1 :131 1

:535 -------- I -

o

------------ Wif

. . . ..... !!!...... . .. . . !!

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

651 --------ii

I s

200 ----------

519 ---------

696 ----------

122 ----------

395 q

17 7

413

1 .246 -------ijj

263 iw 70 --------

35 --------

170 l7i

139 ------

3375 ---- 6

69 34

02 a

2 .029 11

40 ----------

38 ----------

73 . . . . . . . . . .

69 --------

685 ----------

too

72 :: :: : : : : .- :

665 -------

338259 39 .106 297 .502 .Oal 644

21 :,12 24.2!! 312,

00

2a ...... . .. . ..:3"

OO .3Z7-::::::::: :: 100,31

I I .

. . .. . . I IS ---------

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

4 .537 -----------------------

FICA chaddia I ------

Transterred to

WithrieldtanaliC:dEaMIx-pIy - ------- --------------------------------------

Clearing account or cin lasidatem Net and bil-An Force W

Pr e=fd

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

.

Toads for St~ not Showith itterint

Ia) Callonri - ------ 534,499 30,038 1 .670 .360 65OSs a

b) Illinois -------- 328.20 007 1,170.035

472= 74.951 394 .9W 1 .155 1.329

I.) N.. Y

- - ------ Site is 41S.730 378 .157 45,155 329,317 2 .380 1.231

1hk, 111 :12, 143

0

:

:633

.,,7

1 .2ol,813

,.,o

273,419

2, ,

183,3113 1311,1156 42 .515 5" 1.351

:7.

;.":026 1,338 565

as 4, 2 1 :;

: ~36` '7 too 1,742 I .G73 273 20' I

269 .185 44,425 1,3311,713 117 :37"73 26.276 22.509 3.172 ------ ----- 439

1 313 i

W7

9

07
12 2

Table 1-internal revenue collections by sources and by

internal revenue regions, districts, States, and other areas

-Continue d

(in thousands of dollars)

Internal :*1h :,I:qu0, . distric- tal

Seat a .

. W

heultuted b sihisf. districts

wines, contlial. . etc.. taxes

Alcohol I...

.-Contl. .. I

g

knporftd :,d cated 4, parent ...; Occ.p.

or iollne, States shchen I W . Total =DNII 1*",I

to, Of table) Ms.. I-

""d So"

a 7' -- ---------

U Reek,- -------------------------- lot ----------- ifichn.A. ..1c

Allearry,

Auguste -------- m'.

. rl' be I er) ------

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

----- Boston IlWassach,setts) :::

shook a" :-, :::: 1c) be 0 .)

a" C) below)

eudi .. . 0,Ion .. ::::

few ---- Cc- - . .. . 1" ruxcf~c~ii :: .an

ptirined- . --------- (San je) beil-I

Iftee, Hampshire) ------

Mhf Rhode

.AU11tic Reg on ... . _......

.

Baltimore . ----------- IM .ryl.hd &

N-h, ---- IN cauh.) . . . . . . .

Philadelphia a..(.)

P ti .. .. . . . . . . (San is) thilone) . . . .

R!ch..nd ---------- (Virginia) -

VAInhngton (Data . ., . )

Southeast lia -------------------- -------- -----------

Atlanta -------------- (Georgia) ---

linin .m.,hp, A.l,

.Il - -- ---------

C . . ... ::: :: : : : IS h C~'

Go,unsbom . . . .. . . . . _ (North C=O~inno8))

J ckson ------------ (Miaaiaaippi~

j Hi :ck. s

N .h,?In,, I

Central Region ...... .. . .

.

(19)

(18)

17730.113 178 .061 154-350

.9 "

4116 23216

317 . . . . . . . . . .. . 29D

1 . 79-_ ---------- 40

1 .413 12,

------------ 3 :60 . 3,657260

18,285 . . . . . I0245

38 :m

72 1 : : : : : : ._ :: : : :, 59

.90 6 .076 54B

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

-

1

lo~ofcf 1 7 . . . . . . . . .. . 5 7:S ------------ 2. jfIi

2.6,11 2.575 3

6,053 . 7,541

2 .504 --------- 2 M24

59----

2,763 2.659

2 ----------------------

3A72 1,239 1.054

566 ------------.. .......... 431

76

---------- Wall

am ---- q 139

---

1,7202 175

5 .6525 --------- --------

Callinthill

Cis und 227

I 689

21

Detroit ---- jlllhipul~ . . . . . . 2,128 654 22 3

lndmn~p1" ..lu; i n 21 ----- 203 ... ..

6

Louis,

. . . . . . . . . .

(Kohl.

R 4TO" -------- (Want Virginia) 0 3 ---------

M=go I'Asm.012 ---------5.mi

~hfda. ---- ---------

C ---------4,6113 I.-M

(b) "1" 33 ------ _ . . . liewa )

.. . 27

Fargo

Mil-

--------- I ---- North Diii;tij --------

a -'i k as ---------- lWift-in) 291 251

Omahua -------------- (Nebraska) 8 ----------_---------------

S, L-1 - ------------ (mi. is. 1,253

at: P. ul I" " ;,'025 172 1 .442

Spnngfini ; Sea III) teelm) ------- I ---------- is 1if

sonuthelettl R .91 cl- -------- ------------------- 2,GN 472

A IbW-rq.. Mexico) . . ------- 1

Austin . . . . . . : ::::::: Sao (1) balm) -------- 3 ----------- 1,654 66 2

Chains-

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

(Wy ..ng) ------------ I

Dallas -- : : --------- ------- 194 q

o) to : : : : : : : : : : : :

.78

: 7

464 FIVIN10ek- - ---------- JAMansics) 13

Na~ Oduhh, -------- (Loul sima) -------

247 2 13 MIS . . . . . . . .

.1 4

w h""' 48 : 'C I Us -------- is:::::

: "hism I

Region 110.7 0 WiXii 083

Anc n"' ------------ K ------ IN a) :: --------- V) 3 4

B.i ------ Idaho), --------- 32 ------------ 32

5

as

Ho=l,;-:::::::: H-11) ------- 677 63 1 2335 Lee An 1. isbc ( ) bill".) 6,1156 1,00 5.~S

ft-n .!* Ancona) ---- --: ----- '52 52

9 ------------if 25 Portland he ... --- 195

R

ad,

. : 7 ---------------------------- I j'=c1

j1h- ---------------- ----------

1 1m--------ii.iii 2 2 Sn Sea (a) before) 100

"7 "

1

3 111 2.278 47

a,

S 14 ..... ......... .1 . ----- (Washington) 2

"1.: .1 -.1 Operand. - ---------------- 1. ---

p. ... ic. --- --------------------- -------------- 14 --------------

Oth r ------------------------------- ----------------------------------------------------------

indublaut d ;

Toilet

(22)l

Bear ill . ..

firmithad

110-ad

b y

C..'arne.)

--*,he I

(23) (24)

1,308603 1161111 120,396

'j?6 '100.222

107 50 --------- 6:5 - N ---------- -----

37 --------------------------- j__

13 3,091 10. 72

33,397113 -------------- 33,1"

24.022 ----------- 23 .913

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

4872 : : :' : : : : : : : :

: 445 -

3.553 3,467 ----------

1 9.008 ~ ------------- iiii,47%

2 833 -------------- 12~832

1

: 7482

1" 2 5197 1 1

22 .V '

587

21

65,035 ---- 0 ---------- 04,:M

48s 48 ..

is - . .2161 ------ ------ . . . . . . . . . . . . . . 15 341

_ifi . . .. . .. . . 24 :118462

iiii Awle

642 ~ ---------

1110,995

31,473 ------------ jj .. . .

31 .424

1 1

5

42 -------- I— -------------

47,305__ : :_ :: : : :: :: 47' 230

102

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

67,636 6110 68:653

144 .420 ----------- 1.336

35,324 i2i an 403

47 . S2 ----------- 47930

9,9472 41 9~431

50 13' 49.4 4

:262 --------- 1 ~3 235

3

4,434 : :: : :_ ::::::::------------14 .379

350 .M67 460 349iii

23 ---------- ----------

2 .33

51,a ------------- . .. ... ... ..... 441

187,045 125 lea.isw

5594 5348

95:267 -------------3 95:150

2 :1.1 4

30

is ~.. .......

. 30,5912 'W9 e

MILINig ......

....481 2 ........ .I.W

4,4,2260 .... ... ... .. . .. . .. . _

log4512B -------------- 4i _1113

847 -------------- 109,797

9 27 ------------ jj ----------- j.-jif .,

20

1 3 -------------_----------

91

---------i.rfi---------fli._2111111 1391419 5

2s ------------ I

2 5

58.962 158 863

1 ."G 57

2,265 1 6.922 62..250 3

486 15 .459

ocuulli. .

florist

hi

425)

m

'113

2 6

17 432 at

531895 65 15, -------------- 11 VI 63M 14

11 -------------- I I -------------- i

0 ---- - ----------------

Federal in deposit - - -------------- ----------------------------- __ -----------------------------------------------------------------------------------------------

Gasoline lubricating oil . and neon

FICA cmdlft --------------- _ . . . : : : : : : --- : : : : : :

Transferred to G-hru,ent of Gun,

Withheld ft.. of Federal ernbloyess -------------- ----------------------------------------------------------------- -----------------------------------------

chiarighwedu ful ll~dI ., End. . Ms .-

any 'U

oll-Ae I- and!

---------- -

Prm--- --- -------------------------

(a) C.1ifierrici- -------

(b) Illinois .. .. .. -----

ic) Now Youk ------ I .. .

If

I, oh"

T. so. ... ... . ...

(20) (21)

Tese . to, enable not heyern .1sce.

107729 2000 105214 so? 76JOIB 1,072 74,781

4:627 1516 32W 11 632,946 0 326 32,570

29101 0 CF73 22 994 113 3,467 57,097

3~2k '986 1:916 324 a763 :4g2'3' 21 67 3115

2,636 .711 ----------- j_jj 63a$ .486

2.623 ------ ---- 2

1 .849 fin 1,152 .859

4 .674

led

19

43

24

40

1 '3

317

7677

0

512

32

5 5

104

2

774

12

2'.

'20

Ise

'3

356

.11

126

IN

24 1

so

5

1 3

23

37

7

2

31

4

11T

4

1,2121

958

26 ---- ------

----------

165

350

72

38

233

36-

123

Table 1-internal revenue collections by sources and by

internal revenue regions, districts, States . and other areas

-Continue d

(in thousands of dollars)

Internal ... .. .. he liters . districts. Stelae . .it . .. . ... . I (St ...

represented by WiNgf, districts indicated in parentheses ; Well, far

the, states hb.n at bot- of 1.1,10

Tobacco is ...

Total Clip-tre.

(26) (27) CiI617

Oth . I-

(20 )

United States, late _ ---------- -------- ------- ---- ----------------------- 2 ---- .315.090 2 .251,116 51.226 2.743

"Ourth,A11,1111 n*,,* - -------------------------------------------------------------- 1 .111 212 2154 us

Albany - ---------------

ISM'n .'~ be " - -------------------------- 96 -------------------- 75

20

August . ------ --------------------- ------------------------------------- --------------------------------------------- ----------------- iig

Boston --------------------------- _---- (Massachusetts) ----------- ---- 22

lu,,,Ilyn 1 ~'2 9 2 ---------------

Bu late =~' San be Z V) V) -_--------- ---------------- ----------

B rl,ngkm ----------- lVemo,t) ---------------------------------- --------- ---------------------------_ ---------- ------ --------

Hartford ------- -------- --------------- - :C.nn. .,t. .t) ------------------ V) 26 --- 260 0

Manhattan a . (c) bili_~ ----- 825 21, 17 62

P*.",,, ut 0a, .h ~Nxw Hampshire) --- ------- ---------: ------------ V)

P, he ------------------------- ... . Rhode late.) ------

Mid-All-J . Region ------------------------------------ ---------------- - -------------------------------- '5711 .0311 20.ifi -----------------ifili

Saturn re -------------------------------- (Maqland & D.C.) ------ ---_------------ 100 ;0S

N-k -------------------- 32- --------- ------ eisey.) .,. . .. ----------------------- iii 22

Philadelphia ----- -------- I be, 20,720 20 502 .720

P habu, h R:cruhhi __ -- ---------------------- (S .(e)b .1- 3 3_ -----------------

a ------------------- 579,820

..... .. . . .

no ---------- (Virginia) ------- _ --------- I ------------ . 579.680 82 152

Wil,hingh,Fin ------------------------------ D.W.-I --------------------------------------- --------- ----------------------------------

Atho,,l etc- --------------------------------- ------------------------------- "'99 .545 I.ISIA27 f3jiWili ---------------

alitunts ' .967 967 -----------------

umng: In 620 1,620

th =~, 11)) ------------- :: ------ --------- -

Greensboro :SN`."~lh

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

1,111ii .47 --------- i .fi4.1116i ---------------i.il~i -----------------di

lmu.e .ippi )

J .c,,.n

Jacksomill , ---- (Florida) ----------- ------- --------------- lixid ------------------ii ---------------Ii.fis -----------------fii

N,shill - ------------- ----------------- (Tennessee) ----------------- ---- ----- 508 -------- 503

CC 23 23 ------------------1 Regio n ------------------ ---------------------------------- ------- ------------ 50",38 4,04 53

),,e,,Iand ------ ------ I" I'! b' So. d 65

:= au,

1 W

Ln, Pamipo is 2 1 6 "1 - - - 'Wi 42' 4 91

chu-, I - ---------- -------- .... (KshIu.ky) --------------------_----- 499 Sea 496.451 3 .2 4

ParishI -------------------- ----- (West V,rghua) ------------- 24 -------------------- 24a . . . .. . .. . .. . . . . . . ...

Mid,iusef Rep 69 -----------------_

111"n Chieng. . . . . . . . . . . . . . . . ...... .... -------------------

----------------- _w : ----------------i ------------------ fif

Do. Win es ------------------------------

(a .- in bal-) -------- . . . .

1 .) ) ------------------------------------------------ --------------- ---------- -----_----- ------------------------

Fargo --------------------- 11*11 Iko 1 3 i

Mil-kno ._ ------------- Wisconsin) M.

.

. ----------- * -------i

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

"br-ka~

St . Louis 6) -------------------------------- --------------------------------------------------------------------------------------------------------------

Mi'sou

V) -------------------- ------------------

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

M'hh ") --------- ---------------

U

"

S., ". an (b) below) --------------------------------

So'."theNT Region 'In' -------------------------- S -------------------i -----------------iii ------------------4

Albuquerque

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

us n

*b,., -----------------i-ii -------------------i -----------------iif-------------------i

C ..,.nn;---

onwi---- ------------------ r ; ------------------

D:n., ----------- (Colorado) ------------------------------------------------------------------ -------- ----------- : -------------

Little Rock

Csi 6

--------- _ (Arkahade) ------------------------- ------------- . . . . . . . . .i -----------------

Intan ------- ----------- ON 1- i

ty

ek,,hor, j0'ku,.i',j.'-_), -------------------- ------------- ------------- ---------------------------------

Wtchita ---- -- --------------------

WasArt!.hin Region ------------------------------ --------------------------- -----------------4i -------------------i ------------------ii-----------------iii

nc orag- -------------------- ---

- "' I

. ) V) ---------

: : : : : j1dho) ) -- ---- . . . . . . . . . . . ----_--------------

He n.--::--- ------ -- ----------- --- - ------- Monism _ ------- ------------------ ------

H-1.1 - -------------------- ----------- ------- ------- ---------------- 1 ( I ---------------- _i :

Los Mrl- ---------------------------- (San (a) belon) ------ 104 iii 78

Ph-- -------- -------- --- : ---- :- : : : : :OA 9 ----------------------------------

Porlianct --------------------- req.n~

Anne _ . ------------------------- ---------- -------------------

Sall Lak, City ----------------- - :w : :: ::: : ,(,Uta,h,) ---------------- . ... . . .. . ----------------- 1

San Franc- - ------------ ------------- (a.. (a) b1111) ----------- --------

a

. "I - ---------------------------------- mashlng-) ------------------------- 9 9

Nice of International Offahatichus

. . . . . . .

. _ --------------------------- 11 .447 ------ -----------

Puerto RICO 11,447 51 1 1~3... .. ............ . .. .

Other ------ ------------------------------------------- -------------------------------------------------

U.di.t,lWt .d :

Feder I Tax deposits I ------------------------------------------------ ------------- _ -------------------------------- __ ------------------------ ---------

Gawl lubricaung oil, and twGm ---------------------------- ----------------------------------- --------------- -------------------------

Tnans;n' uss

FICA credits ,

W ,hed, to Go-nrnent o us, -------------------------------------------------------- --------------------------------------------------------

Clithhold tun of Freehil -PI .Ven ------------------------ --------------------------- ----------------------------------- --------------- ----------

;~%ac o,ntlo , -Ise tuda-a~ah- 1,01 and il-Air Force

phu'. ~' -------------------------------------------------------------------------------------------------------------------------- I --------------------------

infial Eiecom Fund - ---------------------- -------- ------------------------------------------------------------------------------- --------------------

Totah, for States not sh,en, fith-s

(a) California -------- ------------------- 127 2 26 99

(b) Illinois _ ---------------------------- 60 -----------------

iii

3 67

ic) Ne~ York ----------- -------------_ 956 w 020

to Ohio ------------------- ------------ 674 ------------------ 654 it

Ttn,nssy~v'anis --- -------------------- 20 .723 20.723

0 ------------------------ .... 242 mI

V) ----------------------------------------
124

Table 1-internal revenue collections by sources and by

internal revenue regions, districts, States, and other areas

-Continue d

(in thousands of dollars)

Int, nal re-n- ,g.,n, . districts .

St.,'.'. . end In., . .. .. . ISI .I. .

14ples led Or single districts

Ildic,l:d in p .. .nth@$,, : total,

i: the.bl. .1 shown .1 hot .

in

United State&. total . . . . . ... . . .. . . . . .. . . . .

elanh-Atlenbc ba Y Ratio . . . . . . . . . . . . . . . . . . . . . . . . . .

AS n (See Ic) ba

'Ing-1 . (Main.)

ROSS,, . . . . . . . . . . . . IMassachusi

Brooklyn I below )

B let . ~s , See (c) belol) "

~V ni

C .-C'mu')

As"Sir rd

FPro."," urn 'H2-bep,'n%)

Mid-Ati :rb,

C .

. . .. . .

Rlod . Island) ----

Region

_

13

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

Me,, ",.,rd.1 1),C,) . . . . . . .

Philadelphi 7. - ------ Joao je~ he below)

%.11u hrn .,,,.1 -------: 1,,,e .ealllow,

R

Wll,,ngton . .. . . . . (Delaware)

South ..I Region --------------------_-----

Allenle . ----------- (Georgia) . . . . . . . . .. . . . .

Mr-gh- ------ ------------

il*,Ih C,

W-Sh, N .nn

a id*.')'pP.. .. .. ... .. . . .

C Naiih~,lle ---------- T.nne .si . .. .

.n"., Rag ------------------

Cincinnati :, : ~d,; , :m .. . . .,

Cl eland' a.

Detroit P it'i"'giln -.- -------

India. w.; d,a.) .. . . . .

Lo-Ole (-l-ky)

P.,k.,.O

Mid ..1

114'- _,West ------

-----

Atne- -- -------- (S,,th D,kotai . .

Ch,.V),o . . . . . . . . . IS.. (b) bal :::::

.

D. or'. ____ (low .) _ -------------

Farg. . . . . . . (North 11

Mi1w, k- ~ ------ jW,s,onsrnnL,)

.._::::::~

011ha -------- (Wb,sk,) ---

S,: L n"

St

P, M ricibi.,

a Snr,ngl, .Id -------- IS . (b) .1 .. . .. . ..

-11S .Sell Rag!.. . . . . .

. .

A b.q,e,q .. . . . . _ j1haw Me, , ------- * ------

AIS. .nn ~ . . . . . . . . . . . (See IS) beicc) ..) -----

Ca W CIp

n..), ,, j

. . . . . . . . . . lColorado )

Little Rock . . . . . . . .

(Arkansas)

N . 0,1-. . . . . . . (L-wen.)

Dkish. .. City . . . . (Olki

Wcn a

.h.-) . . ... ..

Western Rej-.; ; I . . .... .

A cho,z

.

cwis"~ ___ ----- _

Boi . . . . . . . . . . . . . . lid .ho) __--

,- St . . . . . . . . J .-Lihns) ---------

Honol,l, (Ha,aii)

L bSt A Was be Is) e b,i&WI, , --------

'

rn,

Ph

iS

Arizona) . . . . . . . _

Portland : : : ::

Reno ----------

S :lt Lake City ------ (Utah) San Francisco Sea, (Sea I W- -1 W) ------- : :. :'. .

onh..

P..

Otheno Rico r UndilithOU1W -------------------------------

me-Itclula". .-Se I. . ..

Tonal Catalina atI .I .ng

. tc .

Tire,

leholly or in

0 0:,

Motor

"n cis Ch .. . 1 .

badl ,

nn .,

an

tub,, . d

R .I .H., St sale. I.-

Other I Total

ii

an d

insets

ubb r

(30) (31) (32) (33) (34~ (35) (36)

5,51 .611

W3112

3621

3924

41 :171

2, 74 4

401 :447

3163

'7

1

35827

2 :036 9

4,213

1015

.

7As ~59 73 5

936

2 9,481

292,627 4

16.49 2

92

155 26,.og

662

2V76

4,11:10,24

2

T,1~ 663 592

19 .5

.20li~ ' :2m

Is 60162. 83

2.:'W71'

39.576

M,867

3.K1 5

684.219

1242:al .

24467

677.171D

7'60

66~6 5

1,6

32,113

1.897.273

""7:13

6 W55

2~ 39F

2 SOJ23

39 .298

37,681

20 .226

N4.8141

7,11 1

157SS 11.6

14

2,380

"'94

291,"3 280

728

3 .950 412

112 .127

3 .129

3 .2Di

36 . 60

6,697

l9j1 7

161 .151.1

21 :233

1 .444

No3 :41

7,t.1

27 .568

66,584

159,933

271,865

91 .053

72

1

1

"9,:3 . .

. 114

1 54

a 121

.798

IVU

51

114 .502

6,23 5

134

75,1131 76

44g:113

20.10 6

3,690

11

11.4

1 .095

'..lot

2 24 9

. 247

7 W3

378

251

4141 .246748

417 :99111

-5~507

232

278

2Gil

11 .216

4 .759'

1 1,35125

373

26

1 .704

103

-138

7 .225

"0554 1

"Do, 12

1,84

61

7237S

3

1 4

41,

2

12 471 3

112 6

62

231 ~'

2,04 1

186

-, 2

C)

264

73

38

~3

315

17 .161 .5)

279

34 .185 .573

14 9.52 2

114 7 1

54

115,967 455

19:5 2 Ila

i2 31" 1 1 4

4 3 11

35812

to6. 0

340

314I s:39' 72

12~32 57

141 .402

69,590

29555

89~06 2

2,459

5061 as

1a73:3112 '

14,801

3.237

16,165

6.464

56,874

40,739

27,64 1

1,816, 71 7

1,077:9"095

23.317

235 308

32~6116

3 3 765

18,019

333,073

55,211 9

-1111 .

a 5

74

l .gN

250.96 5

38,636 10.285

(-~

15,

-.13906

1S12

5356

15

2 .630

34

9.926

7.254'

1 11 2

159

317

91 8

1 .075

2

45.868

30.8'~' )

4

5860

654

364

528

7,118

485

1 ' ..1?)

1')

C)

3. 897- 2

C)

17

1,886 1 .837 . . . .

__11 414 1,86 5

2753 15 11 ss,31 a:~1613 7 2 .121

4 0

2

19 . . . . __

531 . . .

3 . . . . . . . . .

527 . . . . ..I"i

3

20 Soo

11420 :41 .1.1

'39.

1 .397

3,512

1,42.

5,263U6

32

251 8

716

48 .10 243

3425

7 .215

1 0 520 19~486

5 827

1 .629

46 .396

4 503

,3,64259

'AN

8:3 5

S3

10, 1

50.2773

4,954

19.142

1 938

7 2551

2 05

66.270

251 :2Bi g0

6,984

I .(k44

6.627

3 A44

9,461

6.2106

S 4 :975

037 :970

43,39 59

2.721

21 .296

4.019

5.223

5,54"

15.627

6,505

..61 1

, 38 7

4

1 B9662

2

14

6.07 16

5.D42W

1 .771

3.050

25.313

3.765

C.n

NCo .. -W

via, ' 'on

lu ., In .,

gasoline tha n

(37) (38)

11 .1,17

7

421

249

16A

116

151

m

24

13

83845

256

171

74

137

1 1

~24

;43

21

AM26'

55

.n 2

2

134

233

466

205

N

60

1 6554 7

529

W

1 59

39

119

207

172

2W

2.2271

13

502

6 1

3

38

21, 16,

260

3228

13

2 .270

1

96

93

25

62

2075

17

53

N

606

188

.573

221 2

I 61

69

so

1 17

7 0

11

54

48'

245

4

4 .593 1

So

1 .777

205

1,204

383

866

3,231

658

11S

400

119

927

440

41

'3 4

610

590

56

1 83 217

4 .656

54

1 .0

m11

26

3

Bo

.8'24

14

151

7.11 111

3 .44

57

go

620

1,270

-2 .1311

3a

99

86a

-3,870

226

328

49

83

636

63 . .. .. .... 154

1 --------- ----------

6 2

Federal ta~ deposits Gaso I .. . .. . . . _ . ._ --------- -------------- --------- --------------------- ------------- --------------------------------------------- ------

"ne lubrc?t,,g oil . and ,cms

FICA cled 1, -1 ... . .. . .. . .. . . . - . . . . . . : : : -----------

laW.- 1,G-,,m.h,ofGu.m

Withheld a . . of Federal -O10M. ..

. . . .. .

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

Clearing ..count to, E .... I.-

Stinalmon I al and W-4i Force and

Nrl~y ------------------- ---------- - -----------

esroqsnbIEl..onFSa,Sd- _ ----------

Totalls hor Shatere nor Mhoner, W,.

Is) California 565 Q 128 517,838 117506 14,514 117 4 3.774 .029

i1b 3

4 6 1

1111no 1 5, 623 247 6 .256 22 3847 4.132 30.19A

hew 'York 107738 50 :076 428 41.8 9 8.3667 6.970' 1

i'dj Ohio --- --- 6 18656 153 .728 1,55,

419

2566

43

. N so 1:887

P.-Y.-n. ,

2

:

011 431 :27" 11~095 253 :,716 7i :4144 1,215 30.DO 7

IS) 1. .., 367 03 3,3 17 36 714 19 1 33 525 K696

Mi

1

2

I'l 41

a

7

14

82 3

2,105 939 '"1721

2,50B 2~0329,

1 6

2 :11 390 2

0 1 4 :462

510732 28

'3' 711 .971 5.015

1 :11 2

24 3 .1'00

63 660 1,209

4 1 66

71 :2 13 50

7 23

24 .

,

21 4.309

5 .7 4 142

5872 A 27

443 390

2B98 114

5 598 6

656 3 068

2,909 151

267475 2.666

2,893 57

4

2V Z 1.71 *83'

9 1124 500

2863

033 145

143.02 12.259

109 3,4) 6576

1,411 4 6695 1 a

9

14 1 .05 'Asa 121 4

6,880 57

24 :177 5,11 Sao 2

417

23 .971 3 44 .0361

3,796 71

2 4

7 63 3 45.4

,535 1 575

783 607

~4

3 75i 1 a 51i47

lli :'13~1 7 a .711a

1 Do &

03

95 24

41 2924

13.232 95

128

27021 7025

337 2,7332

4,264 779

46 229 296

23

Sio

1 .229 -3 7 .

67

2'

1 :371

367 9249

346 SAO

840 4.326

12 5

Table 1-Internal revenue collections by sources and by

internal revenue regions, districts, States, and other areas

-Continue d

(in thousands of dollars)

Retail . . . .... .

. I. . ..

Internal

.. . . - nmn. . districts . Continued

'S.1:!**as n ' .*"d Wna

led by

.ln~~- 'Sl .

di Di i

is

... I Telephone

indicated in ps,onthea- total, 11, other States :no and

an ....1 1 . P. .1 Other role .,.,Yp..

ols Sells, to- .1 table) 1, o r

(311) ('01 (At 1

.1 lc,s

(42)

.,, .United State . . total . . . . . . . . . . . . . . . ------

Atlantic Region ------ --------------- ---

Albany . . ---------- (See (c) bal ..) ----

August . _ -------- (M.n .) ---- ---- : : : :

Boston ----- _ ._ (Massach.sons) - : : : ----

7klyn ---------- (Sea jc) b .io .) --------

B'" a SO So V: 1'..)n')

Me "'ord . . . . . . . . . . lConnect-6

MP.,n"ln e . . . . . . . . (San (c) belo .1 ---

-lulh ~klew Halpsh,M)

Pov,d-e Ah.d .lsland )

Mill-All-tic Region --------_------------ . . .

Bellmore ----- (Maryland D C .)

Fhilird.l~n ,

P tabugh 1 -------- (See (a) be:o,) - ------

R,

Wd-nW "on 2 n : '

S .-Ses, A .gic, - -------

Atlanta . . . . . . . _ . (Georgia)

6'-nqh11 . . . . . . (Naba m

Cc Wa . . . . . . . . . . (S.

.Ih "oh")

Greenlb o (North Carolina)

Jacksono . . . . . . . . . . (M,--pPi)

Jack... W1,

NashWl, T-nes-) - - - -

CaCIr.I R.,rOn . . . . . . . . .

nc,n . I . . . . . . . (See (d) low)

C;. stand ' . . . . . . . . . (See to) be],,)

Detroit . . . . . . . . . . . IM,ch,gan)

Indianapo is :Inl,,",) . . . . . . . . .

L-awgs K-l-ky) 1 . . . . . . . . .

Set P.,kensi (Weal Virginia) . . . .

AIs1b,"" (So,th Dakota) rcee,as"' . ----- --- --

Chicago ----- ---- (Sea to) tosio I

Des Mones ----- (Iowa ) w

F.,g. .. . . . . . . . . . . 11,1-h Dakotaj_

Mlils,km ----- _ (Wisconsin) IS

111"a ~N.b,Saklt)

S

L. .,,

maso-) -

S;~ P . .I t .:n-I.) - - -

lieSpringfield (See (b) below)

.th."t Region - .- - _ _. . .

A b,q,e,q,, (k1sw Me .,co)

A,tstin . . . . . . . . . .

fSee 11) hot"

Chayen .. . . . . . 'Wyom,,g),w) if , _ _

D 1 . _ ---------- (Sea I I on,

D=I -------- (C.1-do)

Little Rock jArka .ass)

New Orleans L-vana)

Oklahorna City (Oklahoma)

.1..S, hIaR;SS, ; ;___ : : : (Kans a)

. .

Anchorage B_ JAIsake) . . . .

1dal,

o)

j 0

He, ..; M nta n,)

H.-I.I.

Los A,g, is i Seew(,a, i) below)

Ph-.. . . . . . . . . . (A.ona )

Ran

. ~,cti

'0""'

Sell Lak. City --- i .I .n) . . .

a

n

S Francisco See (a) tainw )

0 .,Washington) - - -

thc .1 p-on.

Pueno Fico . . . . . . . . . . . . . . . . . . . . ~ : : : .

011,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

U,d,stft-d~

FICA ..oil .a"'_ "' and

W .-H-O. . . . . W . t.. ..

Trans.

P-t- pa, ,*n*

b,

Us'. .1

nnal,

n

."Onal

, ,,, ~,,, .:,

T,an .p,,.

te_ra,

Onto- Y

by

Singe r

(43) (44) (45) (46)

370,489 3.306077 02,3:~1,1 17:,111 101:1 1

: M"I " :':

: IS so ~g

17.410---- ------- 577.498 2~ 220 40 22 795

S :21 :~~_ S~117 3 .163 ".. . . .. . . . . . . . .

297 '38 468 87 125 '1

3083

1,2489 -2 141 . . I

89.452 82

:11I

.019 480

63 132,499 6AI 7. 385m 8272

4.36 3 38 9.~21 I so 7 30 13

2 63 13 1 --------- 7 46 2, i2

632 ----- - ---- N.110 29,283 2 fil

0

752, . .. . . .

40.905. . . . . . . . . . . .

14 :.121

3,1 2 `1 jI

7 596 4 0 :353 22,985 0,577 21 324

2923 2.788

29

to

4"

1 4

7 12:331 27,2S 20859 71 6121

g

gas A 1 6.2760 714

59B I ~o

06 99

0

16:.2 IS . . . . . . . . 2slS.029 20 .974 2,044 12 2 6,7216

4:011 : 32 703 2 7179 717 -2 17 4609

14 966 605 DS 2 I S 3 1 log

..06, 84 .473 68.20 765 511 1,793 W

177, 46862 37 26 6 86 2 2 41

77 . . . 1 5:4119

2 . . . . . . . .

as: '1~13 4, 54

511

T1 :7a

.1 . ."; i 417718"' 263 .6144

20

.817

1 6,3

11.2") 7~'

. 11 11 . . .. .

7' 1

830 76

I 1 ( .1 7

:

23~1572 2 127 , 71 139,2101 6,iis 6,47 1,44

6 .445 . . . 1'.9977 115 91 7 49 . .. . . . . . . . . . .

959 . 94 .239 9W - 1

. . . . . . . ..

. 2.322

6

:3 ---

' a a 41- :_ 39 :121 32 . s.:197 509 1 6 2

37 . . . . .. . . . . .

3 6 93 "1

2 7

42 288 ..l IN, 1 3,014 10,1184 2

'5162'0 , 56702 3,4815 39 '467 2,W4 1 .691 1

.35

e

4 12.310 244 2 29

11 1'241 :"' 126 63' g, .00945 54 .5126~ 91 1A13 1 2 9' ..

3353. 1 .242

1 . .. . ..

I s 01 9 2

39,454 W .135 2,511 OB 0 394 476 5~522

2 GG4 So 07 135

20,076

: 0

0 2 8 28 2 27,412 ; 1 .37"2' 96 7 '13

3 1 7' '18 9,82 10,724 6 310 losm

4 :a72- 49980 .02 233 4

4,704 -------- So 5 201 -30 - 98 3 .66 11 2.64r~

14030 17.4 5 1.559 4 . . . .. . . . . . . . _

5 .901 i : -- : : : :_ I , a' 17 15 .206 ; 151 1 1 0

64.5 2 --- ------

2 0 .

23 1

1 .6 SKI

: . : : : , :

17,213 12.: ---- ---

57a

' .669

2.88 2

3.423

1,

62 . . .

28287 6 107,779 813154 1 071 2,158 34.887

1 ~085 244 9 _

. . . ___

4 7

25 . ... . 3

1

44slol 12 395.00 51 4.330 1 .050 -312 9.123

77 :~1,17 43.502 27,!K111 465 821 4

1~711 -23654 1.375 -1.326 4 933

1

4 :

1 a

2 54

7

184,733 64 1 36

2115,017 901 .419 52 14 1

4 4 2

S

45 .399 40.016 128 32

4894 42 2,415

12 2"

29 .75 4 128.74 5111 109 16.290

24

' 19

:S11 1032576 98.441 1,165 3.26a 1~1597

14 68 5.700 ._ . . . . . . . . . . . . . 4,125

2,475 1 DO 2

' ''

:.

461 .914 3 . 73.20 8.4697 1 1611~ 14.11

1

9,285 3.108 2,7780 1 2

:6

26 "9: :: 2 .NO 2

a

21 1

4431

6:9 2 2.1132 77 238

126490 48350 11.1 3 ; I .896 3.873 136

2 .5M 15

. . . .. . .. . .

. . 12

a 109

2

DO 60 . . . . . 3D3

5258 16 a 180.. . . .. . . . . . . . .

16 2 5,68a

21S006 182,6262 7, 5' I" 3 .'622 2,4495 6.33714

7 63.506 23607 ,

1 1.11 . . . . . . 2 2 .$12 . . . . . 91A ('1 i .1 4

7 513

03 is 3,7~7) 2.566'

Transferred to Go,e,n,e,t of G- m

Withheld lues ol Federal e,ploy-s . . . . . . . . . . . .. - ------- --- ----- - - . . . . . . . . . .. .. .. .. . . . . . . . . . . . . . . . . . . . . .

Cl :,i acw,,t to, E,c,,, t, .e,-

vianon tual ndl olt-A, Force and

(a) Cldil.-.

ib) Ill, on, --- -------

jd~c -0=0 Y

Pan ..

10 T..a, Y

Touldis fin, Starres not shmn 11,-

42.033 . 341 :1~96 23 .972 64 576 7 :4 6.3 3 8,474

3 IS 1'

140186 139.545 6 13o 6 Ago 2,474

449 .588 120:714 219.686 22.300 9S 7 34.91 0

18,596 107.1~109 11.,6 955 2 348 '4

2 252 :T1" :~~

3a

.7

'14

5B9S30_ 96~227 20.79

48

2 42,492

3 Do 7 78 m

1 .767 1 .463 5,801
12 6

Table 11-Internal revenue collections by sources and by

internal revenue regions, districts, States, and other areas

-Continue d

(in thousands of dollars )

1. m .' I.. . . Us region . . dahri.. . .

States and other hhas I IStates

top,. . .. led Ill a.9i . panic .

indicated I, par hill. .. .: totals

11, the, States She,, I Wt .

Wm of the table)

N .. .. no.

and

.

hi. ...

I n.t.dl.ny

. .cup

, I

C .-

operated

N 2 Mkcas d= "

Miscellaneous -i as . .... Continued

Wagering I. . ..

Wage, .

Us. to . on

inghway

Iwo,

Us. to .

cMI

P" . .t .

in It

Ollie, Ito .

(48) last (Wt e') (S21 (53) (54) (55 )

Untied . list* . . total __ ---- ----- . . ... 152 6.826 227 S.Mo 207 .663 20S59 63,028 22.800 -45112

Righ,- --_--------------------- 4 23 7 440 20.101 5,016 23 .361 8,040 ~'

. :

.2

Mbary _ ----- ls'7 bal..) -------- ----------- ---------- 1 j :.112 40 1 79 12 42,1 1 1

Augusta in ------ ----------------------- 20 6 08 13 69

Both on ------------ (M.... chuti . . . . . .. . 2 17 1 31 3.646 70 1,712 3M

Orooklyn . . . . . . . . . . (Sae (c) hot-) 41 121 2. 74 111 'IS -23 4 ;'29333

alffalk, ------ (So, (c) belo') &1 3 ~308 85 211

60

491

"Iftnglon . . . . .. . . lVemonit ------------ ---------------- ------ I ------------- 443 11 7, 2 65

'prdohd ~Con itch-t)

7 45678

---------- t1 V) V) 221 36 1.213 -10 .580

antuithin Ses (c) tualow) _ . . . . . . lAJ 4.580 5604:1 6~194 385.84B

Portsmouth . . . ----- (New Hampshire) ---- - C) 6 C) "d 17 192

a '77

Prot I

(Rhod . .law) . . . . . . . . C) M 27 116 431

' * "

..S o

Mid-Al' ..ti. Roj ------ 41 'isl 407 Ii 3811 2508 age 2.3111 -78,051

Bell-Is . . . . . . . 175 3.259 362 829 526 -678

""-Y) 2 31 43 2.612 690 - 97:160

PhiIade, ;i;.o-- : : :_ :: lSon 'a) below) -------- 1

4

60 Ni", ~3327 3.516 !144 -3 008

Pittsburgh . . . . . . . . (See (a) below) . . . . . . .

. C) 56 4 5 4.437 127 468 240 _ 1 354

R n' 2 M c1nmon 53 63 i : S .912 91 415 3 312

W-ing .1d 1O.T..Ve) ----- : : : : : : : : l:; I*) I , It 2

"1

41 7M 24(1 59 236

outh-st Region . . . . . . . . . . . . . . . . . . . . . . . .

. 11 1.141 6 638 ~1 .52 . 3. 3 3,59. 1.616 -4.650

Atlanta jGeogia) (') 56 1') 201 4 1 .53 1,001 752 -1,290

Birmingham ------ (Also ... I 1 115 4131128 211 125 12 -7W

Columbia ---------- (South Carolina) . . . . . . . . . . . . . . . ---- 732 1, N 5 211

Greanstooro (North Carolina) . . . . . . .

. C) 11 1 6 6 6 3 243 1 3

1~1

34 343 112

1 :,I: .,n V) 14. 4 17 1 98 70 32 8 ,&a

` ='or) 1 61 89 4 344 8:115 7 1 Ma 301 -2,497

C Nash~,Il - ---------- (Term ....a) ------- 3 5 14 3, IM 1783 4&1 72 -1.798

.mol Region _ ----------------------------- a 452 22 5~3 .24 079 7.525 702 -11.588

Cincinnati jSe. (d) below) . . . 3 178 1 67 4:.131

~3' '.9" 41

.261

Clinaland Sea to) below) 1 `9 4 711 S 78 97

Detroit ll,,h .g.n) ---- 12 1 2144 1,420 333 5 96 3 1

40

1

r7 -4:j79

Indiana, Indiana) ----- 2 42 11 7 6.7 143 .4 62

Lo-ille . . . . (Kenh,cky) --- ------------- 17 3 30 2.4W71 46 1 3104

1

02 2.34506 Parkersburg ------ iiiii.al Virginia) ---------------------- 1 62

96 1,216 27 at" 4 142

Wiliest R.91o - ------------- . . . . . . . . . . 26 32 l?) 246 34.774 5.72755 7.710 2.490 -13. Us

Aberdeen ---- ----- jSouh Dllktna~

1

122 11 88 1 3

14

C

;hll:? -- ---------- Sear (b) below) -------- 16 11 4

8

45' 3.211 3,343 1 .867 -47 .59

Do. i. .. . . . . . _ flow.) . . . . . ------ _ ----------------- 1 32 3

.3 127

254 13 457

Fargo l1tirth D.1o.) . . . .. . .

. (.1 Mil-uk Wisconsin) . ... . . . . . . . I') I 1

21 3 5 30 19 3 IS W

4,167

1

21

1 .

044 93 -6,239

0 In. he

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

Nebraska) . . . . . . . . . . 38 4 11 2.

1W 74 256 so -1444

S ~ IMi,. .uh) -------- . .. . V) So I 1 5,58 995 1. 0 5 3 18 :965

S; Paul M"'"op) . . . . . . . . . . . 7 1 1-) 6 5

. 50 1

.075 1' 5~ 1 37 1

.

4W

0.1thate 1 S Springfield -------- (Ses, jb) "to.) . . . . . . . . 1') 75 1 23 2,117 1, :11 2

: 114 1 ,I Rag on . .. . .. ..... ... .. . . 1~) 151 28 3011 1.171 . .:11 4 .1 . -324 106

Alb,d

....

. jNsw Meb.-)). . :

:: :: : : : 0 1 C) 6.766 45

Ault So. 1) 1 - 6 - Me

. . . . . . .

2 ~0) 5 3~ 616 458 M.1 -Still 803

Do Sed 44 So

Den a- ------------ (Colorado) ------------ 4

--------- It(

V I ('1

; 7, 5 5 797 7

2 . 21

934 666 1

861 7 1

66 3 272

ig 125 -20238 ~

Litt), Rock -------- (Arkansas) - ----- 6 45 251D 1 3 4 .

No* 11111n, ------- 1 6 6 s6

2,

0 is Or 1L. Won.)

585 97a

111 . 2485 152 I=

k horma Oklahoma) ------------ 63 'a 61 3.658 218 1,~4'

T -4

:1

::::_ .(Kansas) .. .. .

. 12

415 135 41

Oq 3.0. 1 2A*' .2 2 421

~1

thil., 1 1 '

:.

. 3.269 4,448 2,698 41.3 .

An h-gh,

. .. . .. .

. 1 ('1 12 '15 397 1 98 5 15 1.529

B-iso lid no) ------------- :__ 1') 500 3 35 196 266

Helena Mom ..) Q7 2, i

: 2

019 44 1 52

Honol,l, (Ha-,j) .. .. .. ... ... 7 87 105 502 64 212' 39 1 11

Los Angeles ----- See (a) below) -------- 27

28

24 71 :11 2,491 1,200 98:636

Phoem . --- lA

'I"")

. . . ... ... . 1 1 Do E 17 2 ; 1 411

Portland g.n) _ . .. ....... ... 19 248 1 9 4,973 113 S 4 10

Reno I~N-d,) ~ ------------- 2, ;441 6 2.05 407 59 19 18 26

S It Line lah) ____ 1 12 41 1 :11 32 4 4 300

6: h Fxn-.. ---- (Sea (a) bal.

.) V W 2 ji~ S 662 13 5 62 64 9 -32.(X34

- . . (Washington) .... . .. ... 4 594 73 693 3 .114 253 415 503 -12, 19

fl' 'WWWO W;I 0

. . . . .. . . . . 1, 2 6

-4 3

P .:,*,' Floo --- I P"""'" -------------- Its

2 29

I . ...... . . ------------------_- . . . . . . . . : : : : . . . . . . . . . : : : f I (.) 3 23-N

Other 26t 1 283 605

U nihibitmW ------------------------------------------------------------------------------------

Federal to, d,pmit5 ----- ... ... ... .. . . . .. . __. . . . __ --------- __ ----- . . . . . . . . . . . ___ ---------------------------------------------------------- 48,537

Ga . .l hit, .no Ill and ..c . ,

FICA credits I ---------------------- ------ - ---- . . . . . . .. .. ... .

T,on.hhad to G-mmon] of G. . . : :

Withheld I.... . ol F*"' ,plo,, ------------ ----------------- ------ ------------ . . . . . .

.unt for E,c

as . . ...r

"Vi't,hon lu I and oil-A,, Force and

No, . . . . . . . . . .. . . . . .. . .. . .. ... . .. ... ... ......... ....... . .. . ... ... .. ------------------------- -------- -- -62

Phhndthn~l 6;chom Fund . . . .. . . . . .. ------- __ ----- ---- _ --------------- ------------ -

Totals 6or Stable mot alkiloon abox e

is) C.111. .. .. . 54 63 1 31 .1 2 .1 1:1416 66,604

b! Illinois 16 1222 3 3261 3 57

; .84

c 6 :88, -4 11116

Now Yro k ---------- 2

89 7

5 415 11.461 4,817 2 1 300 359.630

hill Ohio .__ ------- 3 22

1

45 12.209 KID 2:5'22 357 -4.6lil'

is) Pennsyl- ------ 1 60 6 105 2 264 395, -4 1 362

II

Texas 6 :254 1 1 -

Vl 6 47 ; 550 33 5 :664 2.678046 07,233 3

12 7

I 1V

Table 2-Internal revenue collections by sources and by quarters

(in thousands of dollars )

Sao .. of .... ..

Grand hotel -----------------------------------------

Sept. 30, 1074 Dec . 31. 1974 Me,. 31, 1075

67 .5110 .672 62 .107.280 73.452.N3

J .- 30. 1975

90 .581 .603

Corponnion firconal has ------------------------------------------ __ ............ 0,961.337 9 .2B5 .U3 _WPINT--17.25f",069

Individual firacclanne am employment taxes, total -------- --------------------------------- 62,94111 C .330.02 5B.lN.441 Ge'Wro-'ade

1-. - .1 wftld and self-employment ill - - -------------------------- ----------- 6,011,613 1 .3iO 690 9.779,465

Income within, and okkage, storm,ors, chutillity . and hospetal mouranc, I -----------

Railroad mti=

.nt 46,191,105 45.374.260 47.679 .410

Unemplommint insurance ------------ __ ---------------- --------------

402,082 425." 400,018

338.254 iag,805 31211,729

20.580V3

46,578.526

379AOS

531 .294

Estate tas .. .. . .. . . . . . . . _ - I S

.5 -"11" 1 Y6T____TTM4f

Gilt to, - ~ ---------_------ ------------_- ---------_-- '. 372 7S.7 "1 91" 84.335

Excise least. total --------- . . . . . . . . . . . 4 .435.473 4.409,548 3,1147,920 4.154.692

Alcohol taxes . total I. . . . . . . .

. ---------------------------------- ---------_---- 1 .2e,11.469 1.471,650 1.2 0 .011 1.3U,729

Dallied "Ill- - ----------------- 86259o 1.11 1 358 1100 :S7 W 241

W193. COndiatli, *hC-- ----------- ------ 34:632

a

1:

.21 4

237 47:825 Bear - --------------------------------- ------------------------------------------ 357,247 311,02 211S.2, 4 35o 660

7.b.-tonnal .kins". _ ------------------- __ ----------- ---------------- ------- - ------ Vi.-pit-----------M.1dr- 544.30 592.041 '

-------- -------------------- - --------------- ----------------- ---- 562,016 589,391 631,627 smoei

=

a 12.067 M116 11,884 13,1 9

7- ---- 595 560 792 Sol

Manufacturer a excise taxes. total ----------- ------------------------------ 20 53 U.23170 3

Gkssolm- ----------------------------------------------

Lutinixithriyoll,etc . _ . ----- ---------------------- .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tnes (,no ly or,, ban of rubber). mme, lubes, and thoold rubber -----

Moto, minicles, Chess,$, bodies Parts . and accossones,

Other I- . . ~ ----------------------------------

Retail.. . ... Its, I.n., . . . . . . . .

NI'1*11 rclxl~ ?U,.-hnh,

N .mc

.h_:_ ,

on

I I

or

Dodufl',und "call motor fuels

()inor - ---------------------------- -----

W,DG5 1 .055 .735 1 .012,

0'

928.067

23.291 25,374 22.36' 20023

2M.662 190,760 165,428 34:811

1.102 171:'111 169,2" "

22 M

70 IS IN

16,402 M76 8

102.553 110,062 05.94 7

31,889 .042 3002 2951 2.132

6:574

95646 .2 .55, 100530 1,

-2 . . . . . . . . . . . . . . . . . ...... . . . .. . . . . . . . . . . . . . _ -

Miscellaneous i ... .. .. . I,, -------------- Mws' 417il" 774-1 __F 7.11 .511 f

Telephone and toletype- -hnin . se- I cas ~ ----------

Transportation ot persons by I,

__ . . . . . . . . . . . . . __ . . .

. 657.438 437.606 481 .554 447,146

- " ---- -------------------------------- --------- 19321IS zoi,ool 182.631 173,721 Use It internatc,all air tra,st tax,illb .

. . . . . . 3284 Z

Transportation If plopertr by air 7 ---------------------------

Sugar : : i 2285 : 4240? ;3 031, 9.

------------------ ----- 30,753 32.101 23,553 17,362

Narcotics and meflinunins exed; 17 36 26 4

C

dli~hcjudirq occupational 1 1

thm"D "ll,

.- -------------------- 4 .653 754 361 027

Occupation I --- --------------------------_ ----------------------------------- 56 49 49 73

U:*t.'. on -----------------------------------------------------

1,546 1,648 1,504 842

------ ---------_--- -------_- __ ------- 109,202 25,929 3B,577 33955

use tax on cilil aircraft----- 9. 44 2 .885 4 .661 4:170

Pn, .t, toundalums . total--- 328 5,690 11.636 44,416

----- 5

:3

Oth. . . . . .. . .. ... -------------------------------------------------------- 1 98 4 .594 5,079 6.687

Unclassified actas .. .. . . . . . . . .. .. . .. . .. . . . . . . . . ---------------- . . . . . .. . .. ... . ... . -.11 .1112

I

III

I
128

Table 3-Internal revenue collections by sources, fiscal years 1974 and 1975

(In thousands of dollars)

Sources of "'Imu,

Fiscal year

1974 197 5

Grew 'Pou, .11 Be- - . . .. . . . . .. ... . .. . .. . .. . .. ... . .. . --------------- ----------------------------- 268 .9U.254 293 .822 .y26

Comomt .D. Inc... I-n . WO.I 11 . . . .-------- . . . . . . . . . . . . . . - ------------ -- -------------------- 7=444 5 745660

R .gul .. . . .. . .. . . . . . . . . . . . . . . . . . . . . --------- _ --------------------------- ------------------------------ - ----------

Exempt organization business income to, -------- . . . . . . . . . ------------------ ---------------- ----------

lmfi .itkull add . .W.ym.nl .1.1 -------------------------------- ---------------------- - ---------

Income to, not withheld and sall-Impl-lepwrl 1 1 3 . . . . . . . . . --- ------------------------------------------------

income in withhold add ddl~ago surAyons, DesistA; and romptai insurance ussest, WWI ~ . . .. . . . . . . . . . . . . . . . . . . -------- - ---

RaHroad retirement . total --- : . . . . . . . . ----------- . . . . . . . -- --------------------- -----------------------------------

Unemployment ma. .. ... . . rnploylis of I or more person, .1 any time in each Of 20 C.1,W8, ween .

41,725.250

19,193

204.997.20

33,820,060

168.188.65 5

1 .507,9921

or paid wages of $1 .500 or mom in any iutlencar quart r, taxedi 3 .28 percent, elfie,ti,a January 1 .

973 and 3 .2 Percent. offect- Anuaq 1974 . on t..:b,. Mnu)n of wag" ------------------------- ------------- 1 .480.574 1 388,082

E=1a,,res DO aft7ados miss from 3 Mcmd on first 55 .000 a net lopples, excen, a Sod~uutl

--

percent on portion or SIG,000 .0)0~ aloof allowed Its State death toom - ----------------------------------- a.6511.825 4.312.657

GiftWPmMd'WS In, gra,lp% aim from 21j~ J~ poicairl ch Parcent on find $5,000V M aspeft 0 $30,000

portion over $10 .000.000 Annual nduson to, each donse . . . . . ---- ---------------

ExIms, haid -------------------------------- ----------- ----------------------------------------- ----------

Alcohol man total ------ . . . . . . . . . . . . . . . ------------------------- --------------- ------------- -

Distilled spirits .tot . . . . . . ------------------------------- . . . .

Imported IcIlInled C I d D.m.b. . 5, 0 So P.~yP"~s

I get Did i '~,mm'win".n .I nr='"p~l . . . . . . ---------- I-- ----------

Rectification 30 Cents per proof gallon . . . . . .. 0 ------------------------ . . . . . . . . . . . . -------------------------------

P:homi thdr

e

occud

age manufacture,, of spirits. $25, W. SIGO . per year ------------------------------------ ----------

Fact ImLess In goarP2 pro,f 'Col 0.000 .gallons, $110 Par year - -------------- : : . . . . . : : - -

gallons mom . S220 Par yea, . . . . . . . . . .

Altail dealers in hquo, or moduc-i spirits. S~ per Yea, .--- ---- ---------------------- -----

Wholesale l,q,ol dealers. $225 Par yea, - ------------------------------------ ----------------

S Rbihtdaufum~, Of stills~ $55 ", yea,

. . .

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

"IX" '" .

.1 ---------- : : :

"0. or ond-sam man,faclurec . S22 each -. . . . . . . . . . . . . . . . . . . . . -------------------- ----------- -----------

Whiets, arm., Us .& Ist.1 _...... -------------- ---- ---------- .... ....... ----------- ------

ImPOItWiCIlint~byCusto,3,,etesumeasdo,ast,c) t - ---------------------- - ------- --------------------

Domestic (efili-no 217 cards . 67 cents. S2.25 per ~,Idm gallon ; ac-fing wimm . S3 .40 : arhfouilly

0 carbonated wi~ s 40 : liqueurs. coroull .. $1 .92) ------------------ --------------------------

. .. do." nn'teirm. or in win.. and bear SSa par ~ear . . . . . .. . . . . . . . . . -------

Wholesale dealers in wines or in wines and Me,.S22 per yea, . . . .

Beer Open, Wbj . . . . . . . . . . . . . . . . . . . .. ...... . . . . . . . . ------ ----------------------------------- ------------ -- ------

440.1149 375.42 1

17.109 .110 1674 74-T-1

5 .358 .477 5.350.8so

3 .918 76, ,.97 3.665.162

15 4 704,513

3.1 3.124,645

24 :4003'4 22,15 6

115 80

4

21 23

10,850 12,600

630 714

520 5, 4 4

2 33

GTI S

19,259

150399

45 .723,608

23~052

-

226.S40,24 6

37~712 .721

m .II23 300

1,616,14 3

177 .111 3

18 .031

154,358

3 .483 4,296

374 377

1 2;S .. I ..087W

Impol (Collectoel by C, form . raise samm a domestic)

Domem" occu VIC rml PIT g,Nons . $9 perbe - -------- ------- 1.~J :1 913 1.21931,633986

B=10mil hudo.

L ... than -I,,,$,5,5fMr mom Do y so. . .. . ... .. . .. .. .. .. . . . . . . . . . .. .

so

Retail Dealers in beer. .24 Par in uhn, or beer, $2 .20

. . . . . .

. .

. . . . . _ _

yy ------------------------------ ------------------ ---------- p -th) . .. . . . ----- _ _

Ment, dealers in War. $123 per year . ---------------------- -- ----------- ------------------ --- ---------

Too. ... total --- . .. ... . . . . . . . . . . . . . .. . . . . . ----------------------------- ------------------ ---------

cigarettes. tot., ------------------- - . . . . . . .. . . ------ ----------------- -- .- -- ------ - ------- - . . . . . . .

I 2 1

1

6 3

2,488 2,83 8

112 97

2.07.~65 2.315.0;~O

2.383 .038 2.261 .11 6

Small (Class A). S4 Par thousand . . . . .. . . . . . .. ... .. . .... . . . . .. . . ----------------- ------------ ----------------- 2,383 .018 2,261 .099

Large (Clan B) .so . $8 40 Par "'usand....of if - 61h inches long S4 Par mousaddl to ,

Prepayment In V1, rich Or I. .. lo. thereof - -------------------- --------------- . . . .. . .. . . . . . . . . . . . . . ------- 18

- ----- * ----- --- ------------------------------------------- --------------- - - --- - - -

2

16

1

-

Clear, . total _ -------- . . . . . . . . . . 1- .. . -------- . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 51.5111 51.226

-

Large . . . . . .. . . . . . ------------------- ------------------------------------------ ----- - 49 .074 'utj

C:&ss A As '? lRemil2n I .1 not 4c,nCaM1Ch]L not

wi ------

S2.50 or, tho,s nd ----------- - ---------------- 16 77

. . . . . . . . . . . 1 797 1:315

B 0

Can .. can each S3 Par housaind

C 03e~ 4 c n:, n.: 01:; .6 Carl nCh~: $4 M ; :h usand - . . . . . . . . . . . . .. . . Class ( hin , 6 C:n :n o

. a 1 W B

:- :_ : -: 460 n

C 0 0"'

to $7 M do'sand . . . . . . . . . . 7 :351

C,... E ( 0, a Cents . not Oye, 15 Cents eachl, $ID Par thousand . . . . . . . . 2 6.~'2'7 11. '73

Cjn: F ,=rr 121 c,,t.,. each). $15 Par thousand fican L20 s Us As . C not in

Par - no ------- 4441 "668

5-11 o9tim, 75 onto Ct per thousan d 2 .481 2,472

Prepayrnann _ . . . . . . . . .. .. .

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

Imported 09=1 agaushes, cigambe papers and Cigarette won (Collsomol

by C.W- * Isme

.-

M domestic).. . .. .. . . .. . . . . -- ----- ------------- ------------------- . . . . ... .. . ... .. .. . .

milic.liarmou. Iop - Do -------------------------------------------------------------- ------------------ ----------

C'gamm. P.M . ..luce., pop.. onewhaft ved M 50 ; tubes I cent WSO . . . . ----------------------------------

26 20

909I . . . . . . . . . . . . . 1,251

1 .477 'Jei

129

Table 3-Internal revenue collections by sources, fiscal years 1974 and 1976-continued

(in thousands of dollars)

1974 1975

11 3

R I

Stamp lose* 0, documents. other instruments . add playing came. total I- -------- _ ------------- _ . ------------------- 207

Manufacturer 1 11,190 on- total ----------- ------------------------- ------------ ------------- - . . . . . . . . . . . . ... .. . . .

Go""" L.b. ~' Irl"c' - g, . I ., ."me per gallon , : cutting oil, 3 cents ", gallon ----------- --------------------------------

T,res j .hol1hy'orYn Dart of rubber), mde, tubes, and Imad rubber :

I,

hig type

. 10 Cents per pound . other, 5 Cents Der pound -cept hudinateD time lot",

hillman lypa used On nghemy yehict-), I can, pe, P ..mJ ------- ---------- - --------- ---------------- --------

ne, tubes 10 cents per pound --------------- --------- - ---------- - ----------- ------------------------ I . . . . . . .

Tm. wbldlt, 5 ll~ Cents per pound

Motor whicle chassis, bodies part, an acc-nes ----- d ------------------------------------------------------------------------------ :

Passengl, ilub-biles . chassis. boom, etc ., 7 M-nt I - ---------------- ------- ----- : ----------------

T-ld, and th,dres . ch,,i,, bodies, etc.. 10 percent I - -------------- ----- '_ - -- _ : ----- -------------------------

Pam aInd accessories for aut-omes . th,clut. etc ., 8 concent 11 ------ ------- -------- -------

E echic, go, . and oil appliances. 5 percent I - --------------------------- ------- ____ ----------------------------

P:sIols and myolwhs . 10 percent . . . .. . . . t------------ -- ---------- ------------------------------- -----------

Mui, ns-ro," 10 C-1 I5.742,IS. 5.515.61 1

4 .087,669 3.91

105,723 91,053

768.776 647,187

32,791 27.989

25 .690 22.484

6.049 3,343

519699 534, 158

120,1104 1 Z5,06 2

11DO ------------------ 1

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

Founng d,. Cne 10 percent --------------- --------------------------------- - ------------------------------- 16~259

Bows and p' .r... I ---------------- -------- ---------- - ------------ -- -----------------------------------------------

Firearms (other than pistols and -Nyeni), shells add cartridges, 11 Percent --------- ----------------------------------

Retail,,', esom, I-- . wd,I . -------------- ------------ -- ------- - ----------- --------------------------------

~ nc. .. O:, ::~:cmn .Ofirm. 3 Cents per gallon ---- ---------------- --------- . . . . . . . . .. ... ... .. . . . . . . -

No t-I other than gas,lhne, 7 cents par gallon --------------------------------------

Diesel and special motor 1,'elit. 4 cents Par gallon (.n some instances 2 cents par gallon)

11 0 der- 1

Percent I ----- -- ------------- ---------- -------- ----

Furti, 10 M-1 Ili -------------------

mlin preparations, 10 M,Cem -------------------------

M!... 11 ... .. . . ..I. . I-Im. title, -------- --------------- --------- ------------------- --- ------- ------- . . ... .. . . .

Ad .i,,,., t-oll. total I- - ----------- -------------- -- ----------------------------- -------- -- . . . . . . . . . . .

Theater, . C-ens . athlebc contests, etc:

Admissions, I cent for each 10 cents 0,rgajo, frachon thereof Ifthe amount Mid In a . .,. Of S1 -----------

1.,- Of boles 0, salls . 10 porpurd

0

.'he amount for which similar accommodations are sold to, .] . .. ... --: : : : :

Club FOCI o guard n,, Cabarets. -- 10 percent paid for cmIssions, sanAces. etc, . . --------------

and nitration r loss 20 Percent lit dues a, fees are in -cns of $10 per year) 21 --------

1

T .I .Oh .-" - I.I.typ .w, .tlr :,Change s . .. .. . . :- ---

Tm h of persons by rd (which i~

Trann:olr`~hohgn or Do" : party Iyac I MrZnl

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

416 .2n

21 .099

51 .54

170

404.1117

10 1 ~1 :171 21 :~117

373 .94514 370.47039

-

2 . . .. ... ... ... . . .

. . .

- 2

3.15a.037 3.305.9"

-53 131

-1 11

-35

-17 1 2

1,892731 6 2.023,744

59:1~ 750,641

m ., ,' 'I'MI 47.332

Use of i Ar-h-l 0., De r 56 .908 52594

Coconut and the, ~egelabl, Pill, processed f . 2 cents For pound m;-am efmchye August 31 . 1963 37 --------- 120~

Sugar . approximately hill -cerd Par pou - ----- - ------------- -------------- -------- -------------- 005 1M .769

N.-le . add on-himn .. total r - ------------------------------------------------------------------ . .. . . . . .

Marihuana ------------- ------------- ------------------ - ------------- -------------

Coi-Mraledl arrunniont dwees $10 par dayme, Par year, bo,hnq alloys, pool table,. at'. S20 per

Co.'Il!oy or table, par year --------- _ --------------------------- ---- --- ---

Oersted gaming Omices, $250 per d-ice per year --------------------------

Wme g inal Cun : Par ;naI't.x,,$:,0,1rg., t w,1 'lied

Wageu ru --------- --------- ------------- ------------------

Use to. on In 'ghway wh,,In weighing over 26 .000 pounds. $3 per 1 .000 pounds per year linstallwaint

'miyilages pernuded) $,-5 -------

Is, on c,v,l ai .. .an. per yea r -eng-i----------------------------

powered mmr 2 .500 pounds Or V1, cents r PounDon tu,b'p`-rgs'

.'rPO,em

d

Ad and do nbc) uIIeAmdJ buffer and I!j cheese imp AW n-mad -~j~ter -;~~

"p""d of,, margarine --------------- - ------------------ ------ . ... ... ... .. . . . . . . . . --------------

Firearne, Mrster arid a] taxes" - .- . ------------------------------------- -----

Immn, is

F. gn =nce ----- ------------ . . . . . . . . .. ---

fee Is,

1 53 135

6,5711 6.82

6107 5,227

451 540

198 .462 207,663

20,786 20.959

3

232 28,2

W 32 1 16, .1.

914 19,456

Pdlyabo lapaidations ; tpoal ~ -------------- --------------------- ------------- _-- -------- 702 65069

Net inyestment income . 4 percent . . . . . . . . ---------------------------------- ----------------- 69 :802 63,826

Sol I 6"asdeal, ngde5 Percent , I eadf-Dimer . leduser of S1 0 .000 Or 2'12 percent on fourcati- huimig r ---------- 229 324

Tnab -p-diftres

I,b.s, Ile h,ld,ngs,

. 10 percent on foundation

5 Percent on foundation

. Immor of 35

------------ ------- 3 1

.000 or 211, percent on to-dabod 1

F, lure to file cartain Informal- raturns, $10 mfdj up to a ma-uhn of S5,0(X) --- . . . . . . . . . . . . . . ..... . . . . .16 54 9

As saabl, penallme ,in respect 1, annual reports. 10 per day up to a . rourn of $5,000

1

Farm to distribute income. 15 Percent of u distributed h n ..m. ------------------------- 360

Inn, . .hiCh jeopardize Charitable purpose. 5 Percent on foundation, 'oshrium Issue, of $5,000 or

1, foundation manager 6 -------------------

P,oImNIpd`c- . .. if, =hon,. . . . . . . . ---- ---ii

Uncl d ------------ --------- --------------------------------- . . . . . . .. .... 1 .4i -5 .082
130

Table 4-Internal revenue collections by principal sources, fiscal years 1940 through 1975 (In thousands of dollars)

Fiscal 'W

Whal I

.. . 3 0

INO ------------ I

943 ------------

94 4

'046 I

. 7

1 US

949

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

19W ------------

IOU I '"

i9s7 ---------

195, 1.9 ------------ ::: ---------

1962 ------------

;963 ... ...

M4

19,05

1969 -------

i 9,7?

'12

973

974

1975 ------------

To.,

Inecome and prr" babose

Col.

ponstio.

faccons,

Tot ., -dP a

I=

Employ.

:nIfilld-I 'sma .of

m

tells 1 1 . 1! I I

Estate Alcishol

We go t

to.. .

Tab ...

so.-

an ... Inc.

turn., AN

.the,

I ... .

(1) (2) (3) 941 M (6) (7) (8) (9) (,0) __

5~140,4~ 2 .129 .609 1~147,592 982,017 633 .521 360 .071 624,253 We.51 6 .7,088 337 .392

10.1:11

3 .471 .124 2.053,4169 1,417.655 925.856 407056 020,056 898,(F77 617,373 430,564 BOOM" 4,744,M 3,262,800 1,185,362 '2540 048 .51 7

22.371 ~38"e 4:298,888 9 .068.956 6,629 .932 1 .498:7

78D.982 771 .902 821 .682

40.121 .760 7495

1 423 Bull` 923.857 504,746 274 .040 33.027.902 14,766.706 ea. 1:

18 .261 .005 1.73830752

511

.210

1

.610,775 958 .483 SC3,462 U33,655

43 900~389

4 172,0117 18

35.01 t6.027,213 19.034,313 1 .779,177 643 .055 2,309 .1366 232.145 7112,511 2.292,100 0. 31 .704,536 1 ~700,82 0 .258.138 12,553.602 676.832 2,626 .165 1 .165 .519 922 .671 2.421,9"

31 110,

306 29.019.756 9 .676.459 tg.343297 2.1411 771:1115 2~41,162 1 .131 .7 . 1 .421,2 . 2.147 .184 11 .

. M2

31,172.191 10,174.410 20,997 .781 2. 3

.' :~42 inge . 2

55,327 1 .3DO= 1 .649.234 22015 .1122 40.463,125 29.605.491 11 .553.669 18 .051,822 2.476.113 795.538 2~210.607 1 .321JO75 1,771,533 2,200.969

38957 28

.007,659 10,854,351 17 .153 .308 2.644575 706227 2,219.202 1 .328 .464 iwll 2.214:9151 50:44s'l 2".

65 gg.:~18166 3 :1.17 . 14,.7:N9 22 .9117.309 3.627 .479 729.730 2,546,8011 2 ' 77 2

"

.:6

50741 .017 21 .465910 29.274,IU7 4,464 .264 633.147 2 .549,120

7

54 .3 2407.1133 8 .535 54 .130.732 21,594,515 32.536.217 4 :111 :.413 al 2,780.925 :654.911 2. 2.71113 2 .647,492 ":9"19,991 54,350,014 21,546,322 32.813.691 fit COT 23 035,121 2,783.012 swvm 2,86669.133 2,464,059

66.298,692 49914 .826 18.264 .720 31,130.106 6,219 .665 936,267 2 .742.840 3 2

Bill

2:.01,1:1 75,112 56. 21.298.522 35.337.642 7295784 1 .171,237 2,920.574 "1134.7 3 " :4W 2

80,171,971 60 560 ' 425 21 .530.653 39.029 "2 7 .580 :522 1 An.9" 2.973.195 ; .i74.050 3.761 .925 224343260 79.978

'476 79 .797

59 :101 :171 20.SMX6 31I.N8.5N e.644 .386 1,410 .925 2.946.461 I .rM .021 3,974 .135 2.166 .675 .073 Si 254 18 .091 .509 4D.734,7" 8.853.7" 1.352 .952 3,002 .096 I'Soli 3.9611,789 1 .997 .292

. 0, 1 2, :, 0 4 . 'W 12 . 5, ~f

11 :477411 1 12,1 :.11 11 .19:.414 41:111 11:~11 :4111

a

3.11,714 1 .031 .504 4 .735,129 2,004 .394

99 .44JIS

67 :91 916.392 3,212,801 1,M .117 4,896,802 1,963 .582 JDS .9253959 71 21 5 :94 XS .295,711 50.649694 12,700.171 2 .035 .187 3,341 .262 2.025,736 5,120 .340 2,264,817 7 323714 22.338,1214 52,987:561 16,004 .486 2,187 .457 3.44 1 .656 2,079.237 6.610 .309 2,278 .536 112,250257 78

'891

:218 24,300.863 54,590.354 17,002,UM 2 .416 .303 3.577 .499 2.052-45 6 .020 .543 2.299 .545

"4

:131 :1 79 .79ZOIS 25 .131 .334 53.660 .683 17,104.306 2,745 .532 3,772 .834 2,148 .594 6 .418.145 2 .453.406 12. ."

1411.314 :.9715' 1 :

3 61.227,562 20,256,133 3 .093,922 3,814,378 2.073 .956 5 .613,869 11195,909 21 .3' :4.' '34' :9'17 :8'2

'5 1 5 " 37' 53 :' gf~21 1141 3 2.:1 :Iuo. ~:0.14' :406 4 :.7'1:27~3 2 .071,869 5 .478147 2':471 1 :11 .638,530 106,140,565 29A .S2. 111 :252 .5 979 428 37 2.12Z277 5,713973 2 go 187,919.560 135,778.052 38,337 .646 97 ."0,406 33.068,657 3,530,055 4,555.560 2,137,565 6,501 .146 2,348.495

195722,096 138 35.035,993 1133A 37~449.188 3 .680.076 4 746,3112 2 .094.212 6.683061 2 380,601 1

91 :047,106 31 072,374 30,319.953 100,75242 84

1 , 61111.5611

511"51 39,918.690 3,784283 4 :eoo.4a2 2".585 6.6 :799 3,179.985 209JB55 .737 '43.004.732 34 .925,546 108 .879 " 86 41:7.11 101" 5:4.al 129 5 :f'O.OOh 2 .201,2731 5,729,6S7 3,801 .IN 237707204 164.157.315 39 .045 .309 125,112

.0 5 ':, , 5:9

05

2

. ,

49.513 2,276,951 5,395,750 371

.10

.

268,952 .254 1114.648.094 41 .7",444 142,903,650 62 .093,632 5,100,875 5 .3511,477 2.437.0015 5.742

. 154

3:572217

2113.822 .72111 202.146.097 45.746.660 156 .399.437 70 .140,909 4.689.079 5.350.838 2.315.010 5.616 .611 3.665.10

Footnotes for Tables 1-4

*Less than $500.

r Revised .

1 . The receipts in the various States do -indicate the Feeeml to, burden

Of WCh since, in m,ry nslancess . mums, are collected in one state film

maidents of another budle . For Warnpil, withholding Islas leponedl

employ located near State lines by

may include potential mount, withheld

from sets

res of emplo,hm, who msid-, neighboring States .

2 includes mues on bluntness income of ,,,of olg-cl .a.me ,

3 . Collection, of individual income to. not withheld include 10-age .

survivors, disability . and hospital ns-ce moss on sell-empkey-n-come,

Similarly, the coll-lions of individual IMMO to, withheld 1, epic in

Combined amounts ,In One. sullvom, disability, M hO'pmI ns=

C.

le"

. on

saur- and wage, sumetw seeparet, national totals for individual

income to, and for old-ag,, 8-101s . disability. and hospital in.

. .once

ms.'

are shown in the test totol, on p and am -in obtaining national retain

for Individual hcorv, t ...a hol employment to,,, in table 4

4 . Self-srhiploy-t 1. and! .

..a imposed %the Federal Insurance Colinbuttons Act am applicable with - .pact 1. mm nal American San"'

,

A

withmounts of such union collecled in G- I American r .m . am Combined

hum, mu ., ep.m. to . ... .c . 0,International Oponnuorns-Ons ,

S . Beginning with fiscal yen, 1957 . the United! States total a adjusted to

,,,rude withhold individual n,o,, t-en transferred to the Government .1

Guarng SaCcomanc, with the provisions of Ptiblicil-aw, f,~O . approved Aug. 1 .

19501 let. 392) . This adjustment mounted to 16. 0 million lor 1975 ,

6 . To, payments ad, to banks, under the Federal to, deposit system . are

incl died in the Internal revenue coliec hons for the Period in which the

Federal by to, d,posul is purchased . However, .,ch Payments am not Classified

payments mj internal , venue districts (no, by to, subclasses to which Wcue to,

L"Payansliatolilyfrontlannit :te' until I he lederallits . deposit payment is applied to the

.m. led.

7 . R-phosents credits allowable on mcome to, not-s for carom g,scen,

and! lubricating oil Is, payments and for WCe5s payments unde, the Folderol CA,

Insurance Contributions Act (Fli ).

C,:C DIsiration

.

by to,payam of a portion Of thin, talms to the Presidential

lion arnpaign Fund am lot collections. as such, because they do not

affect t"pay , hablity. Transfers of amount to this fuels am made on a

national basj: nlyi,nd therefore have no affect on district and regional

collaction data .

9 . Amounts of internal mvenum is ... colinted! on Purim, "cum pnoolucto

transported to the United States or tonouthrod on the island

lines

rolu nds,

drawbacks. and astrainues) are comhord into the Treasury of Pulm . RICO under

provisions of W,, . 7652(,)13) and 5314(,)(4) If the Internal R

." .

. Code

15354 The gross mount, 11, included in overall collection r .. 11, IT be. 1.1

through

' )

". ,

Real 1. Table 3 111 . ..p. ..run.

11 . Includes 1m,f Inson on document,, other instruments. and playing

Ca ;ds arnounting to C101.30musandl for fis-I 197 5

2. Corporation in . MI.,: Effective January 1, 1965. hot $25.000 of

net income ortmal lu of 22 percent: net hCome in -ces, of S25.00D

combined normal and s,nu

of

48 parcem. Nominal

to . a

T

to hot Income delved by wtadn W-pt or, "Ori-stro unrelated "n" at" 'Poly .d or

bus as . Effective January

I , 'Me. . 10 gnporm Par mmurn untrang. onas

addZ

I I

he Is. . I

Public Lw

9~fli The 10 i,11,91 nn

was Whancedl to D cartoon, 31 . 1969. by Public "

. _V ,

I WeludX~'o"J .":

30 , 1970 by Public Law 91-172 at , 5 percent ann,al rate, and then

discontinued.

13 1

13 . Rate, of mr, am as follows; Individual income tas : Effective January 1,

1965, graduated rates from ill clarc-I to 70 percent of [Wable Income.

Includes old .,an-mi-sIodestolily. .. .plot n. . ... IW. on aoll~

..of

. nc The I - o=--ge seded by Public

Law D=t effective April 1 .

nt,pe, ,

to Ind Wtandled to Dec-lbst,

31 . 1969, at the same annual hate (Public Law 91-53), onmrsed to June 30,

IWO (Public Low 91-172) at a 5 percent annual mue,and thendi .conanued .

14- Rltm,Ct tals, am as follows : Income To, gmanlated withhold,rpr, wages

in ..cess or @,emotions : Public ", 119~613, effective July 1, 196 . 14 W 33

percent : Public Law 91-172. all .cu. J .nu .7pl, 1970, 14 1. 25 Flunem: 11 1.

36 percent effectiv, January 16, 1972 , no,, IONIC Law 92-178, and 16 to 36

plucent. effective April 30, 1975, under Public Law 94-12, Old- .go, s-nom.

d,salOhly .and hospital meorenc, lWas on sala- and wa?es up to FIC $13 .200

wom suiptnted to a combined I A to, rate of 11 .7 percent or balance, years

1974 and 1975 . Efterctim January 1, 1975~ the bass was ,and to $14.100.

15 . Consist, of mi returned retirement Combined tn . at, of 21 .2 percent

am 8 to, Onendar years 1974 5 shift 1975, To, tells, to employ,,, (15.35%) and!

$1 . of ployeet,15,15%) nduirmpoesdontambopomono 1,

th fZ3`$"417'T1WIi

100

nthly bumbl, compensation for 1974 a 1.1 or

Further includes railroad employee representatives' tas of 21 .2 parcell let

colondaryears, 1974 and 1975antountin ponion otcomponal received, In

addition, a supplemental Ia. eved quarterly by the Railroad Retimemn,

Boord is imposed hour 0, employers and employee mohnsentauved based on mon.

.

welle

d

1 6 Issue and transfers of stocks and bonds. repeated, effective January 1, 'gi

Cases of Conveyances: $I DO to $500 . 55 cents : each additional SSOO or

,,action theme' IT . . 55 cencs : repeated effective January 1 . 1968 .

Cutting oil. utomob,l mp'Wad effective January . grts and accessories le.cepl truck pare,

1 . 19 6, jPupI,C Law 89~4) .

18, T-as on passenger automobiles and light trucks repeated Decombe,

11, 1971, by the Revenue Act of 1971 .

19 . Repeated, effective June 22, 1965 (Public Lay, 811

20 . Repeated, effective noon. December 31, 1065 (Public Lao, 89~)

21 . Repeated, effective January 1, 1966 (Public Law In i

22 . Rate anas reduced trm 10 Percent to 9 percent on January 1, lW3, to 5

per" III on January 1 . 1974. and to

7

percent January

I

. 1975 (Public Law 91-

614) .

23 . Narcotics, I Cent per ounce : narcotics OMer blames, Sl Ce, hundred .

Ma,ith"na. $1 per ounce : Manlius- older pi him, 2 cents each . Amounts

shown 1110 include occupational IWO& Wrap on manufacturers, Coal- and

practitioners 24 . Red-led, effective May 1, 1971 (Public Law l

. R,paaaled, effective July 1 . 1965 (Public Law 89-,14) .'

25* 1 x incremed from S50 to $500, etteclim Common, 1, 1974 (Public Law

gKL.4gi

Lear2693. Role reduced .~y from lOpenceent lo2prinford, effecore Decarriber 1, 1074 Ilital

i

27 Adulterated bull ., 10 cents de, p.und,.Po" C.,ur l;, amid! bull., V.

ent'por pound. DOMOStiC filled ChOmm, 1 , P

:P ~

. Imported filled

,the". 8 cents par pound . iMPOMW actulenfle,J buffer nd omo-liang-ral.

1 5

cents Per pound, O-pat onal laims are imleel on manufacturers or

dimlems in than, products and are included In the &IQUIM Shown . Filled

Chase, harms rerviml,ci effective October 26. 1974 (Public Lov, 93-IN).

21 mile,, 11.nomachine with C.mb g.h,. firemims . s,l.nc.m, We . 1200

Dhabon shotguns and file barrels, and other

:pecol type . .1 hmarls.

$5 own Occupational loans are wed! on ma-fac.

t,rem, nmecumm, ti, dealers in imarms and am nch,doe in the amounts

,hosim .

Jo29 . By E-cutows Orders, .1 . Induced from 11 .25 berceni to 3.75 percent on

guary 1 . 1974, and.100.,te.,704on January n. 1974 . Legislative 11thonty, to, the

-Pred! on June

30, Negallm figures liucluding -applied colledtions) som primarily from

I,do, RW ..,,0-1 0 'ardits emn on -,I.,n I-es *posted by the E,cise To,

.n

A

., of 1965.
1 1

132

Table S.-Amount of internal revenue refunds including interest (excluding tax rebates)

(I It thousands of dollars)

internal --, reounu . distn,u . Star,, said

.1her . .. .. . . (a.,. . represented by Single

district in enthrisse ; trade for other Stables

Shown a bM= of bible)

Corp...

ImI income And

employment is ."

Total I far, Estate Got E..i. .-

I.--

E ..I . .

IS .

Pay

(1) (2) P) 1-) (5) (6) (7)

M-h.ad'-de United Sul a . .. ....total ..... . . . . . . . -... . . . . . .. . . . . . . 32,2oa,671 .5,290A33 2s"4 .032 1 .068,527

4.969.691 1,092612 3.n8.117 93.53 7

AiNny

ISee (c) below) -------- 233

.113 25.451 203.384 3~356

Au,,,Ia -------------- Is 2165 2,117

=k 113 11 'a 933 "A .,0.0,. 78 l

. 1 . -a' 8 Z 12 : M 14 .628

,-O"Y" 805 fladal"2 .322

Su !,S*. : I~, ; 'Wid". ------ 667.920 98 .914 575~796 9,885

S.M1,11-h IV.1morl) -------------- 48 .282 3,483 43.383 1,216

Hanford Connecticut) 595,298 1 08 155 463228

9

.:S71

Forr.m In IS -------- 1 .221 :531 605 :806 571:54 5 `6

N

9.946 92 64 1,923

JR ode Islan ;"

1 9

p "-d 129,17S13 07'.3508 2.006

.- , - 1- --------- ---------- 41619 .055 752 :85864, 3.7.,929 36 .22a

Bell""* , swa M _ I = )d ~,ndl 1C.) ---- 839,405 107,215 710~137 13,981

. . . . . . . . 1,277,852 213 794 1 .013 . 70 27.580

Phludtiphin

p ' 1 78,0 1 513,86

------ (See Jet be ow) 1,099,291 207 :918 ass 291 20,321

R '"=nd 604,099 1 9 .612

ic -------- 637,533 55.465 5MMki 12439

Wilmington --- ------ (Dole,,,,) . . . . . . . ---- 160.875 90,095 68,066 1.692

Southeast R,gl,, ~ ----------------- 3,7116405 614 .228 3 .0SD,fM 99 .129

Allen, - -------------- (G-gu) 699 M 672 62

:

4 6 16.607

BurInght, In -------- (Mo.-) _

. . . . . . . . . :798 da,

366748 m: 3214705 8.9117

G an. 0,6 INOM, South Carolina) ----- 285,236 29253 249 .461 5.959

Carol.-) -------- 612.611 1M:I27 474,884 11.907

'

n,,,,,-----

Z=

:~ : :

:- 1 513,942

J cks n 1 . 1 3N5 :IRD; 198,384 60

.654 .59,r

Na 92 .877 37.193

.ndfle n 68.765

46

Can, ..... ........ 51)(1,240 12.882

,21 A .gi

(11 no.-)

C, ISludi b ow) 657 1 63 t7

4.6110.759 39 3.711 :""7 079

CuT-und So b nonnati --------- 85 :! . 554498 1 64

. 978:083 151.7039'7 107,083 17,377

- ::: :: ---: : Detroit -- : 1'.1 Nd)- . g ------------ 1 I .756558 447A59 1273,061 21 .546

Indunj,oolis -------- (India.) 721,03 ,~443 626911 14867

Louisv~116 ------------ (Kentucky) 360.123 30,415 318:28 :701

Parker u,?- -------- (West Virginia) ----- 186999 is IS I 1 2939 1

1 10 21' M "2: 62

.

Sir dwest Reg on . ------------------------------- 4.409 1111 0 7~1

:63 124

Al,,;*n 1.11um Dllru~ 57

'749

5,035 4 711 1792

C.

._

. ad 1,579261 368,758 1,1687:917 33,174

0.. in !, ------ Of 3 )1he - ---------- 1h.l .) - ---- 326.1lIl 52.269 261367 1 0

:6

""' ------------- (North

Da!,Wti~ -------- 64:866 112538 447,,PII 4

Mil.. .k - --------- (W.-mun) ------------ 624731 3:762 95,554 12.N573

Omaha ------------- (Wb... ka) 17 548

1

L 649978

1 37:483 M,

S T 1 "3,350 11,850

,740 505 370 Is 642

K 1, -- --------- 556,878 99,91,

field ---------- (Sa . (b) b -

Sp"n' )

TV SO 54500 314,086 9,0011

.Uffy-l Realan . ............

... .

.

. 25706 410.771 2.724247 110.512

All . ..... N..(M.~i~;j Austin . . IS_ I) 901 ----- ---- 123,0117 0.523 11 0 025 4393

:al 129~251 743,029 26,159

=nn, ,, . . .

:-, ..:

.

:

.

:

.

:. 66, 32 If 0 41 4E 2~902 41,5113 1,792

NO

51

6a74 21:116

Do- ., -------------- IC.Ioud .) 375 ON 40,677 32o,ao 338

Little r o .k ---------- (Arkansas)

I

93,iI4 21.764

1

0, 982

New .. ...... (L-suima) 38,921 653 :I -. 405.48 3 3808 11:137's

1 C

3

Wk"111011 h I. . . . kill-, N,375 29.435 2582 7 15,563 (an.,) ------- ------ 256.304 28,689 211 :112

Western Rest

be . . . . . . . . . . .

. 623

..932,4.

5.852 757 .489 0 134 268

ra,~ - ---------- 80:1 DO 2236 75

Ildah ) ------- I ------ 90 .809 1'891

.,

12 Fil1 T7 60 41528

He,.

. M,n-tana) 78028 4 .731 69:140 3 .787

Honolulu ------------

(Hawaii) 146:162 1 8 .738 124,220 2,932

A a

2.492 .920 353 SU 2,079,7 2 46,896

'- "go" '" -------------- Us

1

P o.m. ISAnvonso'cn) ------ 342 50813 28 .6sB

P nland ------------ (Oregon) 362390 66,716 286. 06 065

Reno ----e ----------- IN..d.) 113.7" 12.4,12 97,948 2,760

Salt Lak, ny -------- (Uuh) 157 .829 15,09~1 139.001 3 .458

'"F-'-

1

~462 .420 151 :154

1,2

32717

Sao it I=J,"n)gZn) 52629 74020 46382 :832899

18 :295

or 13 ~5 fit, 11 International op-do he . . . . . . 21.951 IORA54 6,793

P"", --------------------- 24,145 1 29 21,877 2.348

Dina, ---------- I -------------

114

.590 211122 87,177 4.44 5

G .-I"'. lubricating oil . he . .....

FICA credits -------------- ------ ---------

.1 Ciuad - - ------------------------------

79.304 5 .496 300.1120

17.928 2,074 25,424

763 7

604

153

2,476 674 2 .310

4

1

1 :1 00

7 5 of 1 :4 .

ISO 1 46

2.621 1 .079 10.438

5,~42 1 . 4ada

M 3

43

253 2 '40

11 US "a 41

.

.1

2,788 403 4.881

4,434

1 A95 114' il= 0

665 24

:a24

151,

40 21731

a, 28 gas

a

. 675 "o

2, .=

719 loe 9~267

4

95 11

466

3"2

,if I

1,46o so 4.054N

1 99 157 117

4S,o

428 "557

1 .81o 169 6.1 25

6 .4 5 353 23 A?

1171 65 3:236

1 206 67 1211

1 665 79 12

1 .59 so 3,97~Ua0

655 29 2,042

lo.4 6 63 188

M 421 25,766

64 60, 87

3.71 D 62 5.640

851 26 892

as 7 135

1,35il 83 ",6

806 11 40 4 1 ~

467 82 15,47

659 25 1 , 08,

1323 63 974

5.907 361 7.70 9

71 1 61

I'sQ9 a, 1,668

, .41115 4 '36

7 157 3.760

773 30 288

279 11 210

608 33 436

527 1 a 597

586 23 473

16

.06 life

11 .1112

17 2 1"

93 1*1 s

o

24 11 110

167 11 93

7 .634 1B4 4.651

IA28 37 233

480 a 21

553 39

U V 1 29

4,862 25D 4,5 7

67 49 920

I , Car 33 '16

56 ------------- 43

I= 'is a ,

1000 -------------------------- -

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

TOWS for States not shown abiWa

1-1 : 9

0

210 5

- -Ii time

3 .955,NO 5N.950 3,ma,591 79,613 12,486 431 92

Ib~ 1211mols . ----------- 1 423250 1.482 JIM 42262 1=3

1

2'

6

.61 1

13 .9 92295 A 2.217,337 61 .769 11 71 12.337

IcI "e`w York

.'1 .578 609 a 1 312

III Ohio -------------- I .M.246 236A27 261581 30 41 1 32 4,469

0) 03 9a 285 ; :7 :~ .992 30 :3 0 152 :~33 2. IT 67 14,497

63 30 239JO60 ~ 259 .903 51,775 2.5962 16 238 5 .428

g1l.d. thedne for Ine Federal Old Age and Sum-S. Federal Disability . and Federal Hospital Insurance Trust Funds mounting to $360,000,000;for the Highway True .

aff,Z?urting to $145.764 .000 .

Net of

u

d.li-tol. luck. touring S25,6139,000.

includes throns g

is

It

p:yments u , 1 . lirtural Insurance Contributions Act (FICAl of 136D .000,000.

Incluies credits :0 ol:i I'

b

-~ cecm-ln Sr '. ' cahng Oil bur Payments.

L- than $500.

Table 6 .-Number of internal revenue refunds issued (excluding tax rebates )

I-nul -snu, egkm, . difurlett . Stores and Intl

(States epresent,d by Single dutncu libil.

addromin parronthessi foods W didefe) to, other Stable an-. at

ImIlIkI.-I I---- end

Corp.,..

is .. .

E .c. . . 11.

or..

Par 0 1

(1) (2) ( I

Total bom

Other

(4 )

United States. total ------------------------ - 67.834,472 359 .2M 64,953 .020 2,433,296

klinth-Atemix R .gnm ------------ ----------------- 9.824,016 62,067 9,424 .935 316.2a6

Albany jSeeI .) b I-)__ 565703 3.070 SIS.155

Augusta M- ads I J962 7 13 .) 33D :328 2.041 31 171,

on -------------- (measech ;Wt~;) --------- 2 153 61o 14 .368 1 ABM 57.M6

aBnocklyn ------------ (See (c) ~:Iow) ---------- 2.105 .164 :o3 .179

1

13a 2 59 .276

utfal - -------------- Ise, (c) tual-) ---------- 1 .518 .401) 1:645 467~254 41.328

Burhngton - ---- --- (Vermont) ----- - 143 158 l.D76 35:233 6. 2

Hanford ----- ------ (Corn,cu,ul) 1 .217 .717 6.N7 1. 173 Wo 3s '68

sunhatt -- ---------- ISee (c) bal-)

.. . . . . . . .

1,380,804 15OS3 1,294 . 218 67 .34G

Portsmouth ---------- (New

Hands'!

276470 2202 264,431

9

548

all Pm,id -- - ---------- Rh,culaund) 323,450 312. 24 8,757

d-Atemlic treat an . . . . . .. . ---------------------- 9.90.182 41':1377 ~7.8110 296.605 Is S.

Ban-,- ------------ (Malyuld and D.C.) ------ 1,756,966 6,483 1,698,235 50.759

Newark - --

: : : : : : :

: I"* '"") ---------- 2s48,325 727 2,4 9,627 79.971

Ph.t~1~1~durg 4,519 lph.S Sao (a) below) 2,392,629 1'o:327 2 34D3 82 75,331

1 . :

'an ----------

ISee (a) below) 1.429,515 38 057 35.775

Richmond 9 7,1 Its 1. Wilm

I"' in') ---------------- 1 .58. D24 527 .039 QS 2

Delaware) . ------------- 193:723 2,511 1 6.257

Soulful- Region ------- NATO 11,15 5116 .1311 . 364,112B

AllenIS -------------- --------- IM 015 SAW 1 4651571 56747

11,11S.), ---:: --------- I. olB,906 3a16 976.722 35:328

Columbia

j. C

olina) ~ ------- 858,691 3.859 1,827 .021 26)883

Greensboro ---------- I Onh Cadhna) ---------- 1,06096 9.478 sil S74 52.0,12

j:,Ckl.n ------------ J 576'(09 (Missisuppi ------------ 23,235 2,44D 549 .588

No "on,ille -- ---------------- 2,592,398 17,379 1 441 :1 1 126.621

shrifle !T"Oh")

1 :3

n eased) -------------- 1.=,015 5 .174 12611 43,972

Central Region

. . . . .

. 9. 581 .641 43.300 9,246 n2.356

C:n1.mn,1d1, ~Se ------------------------- tf~ blllw~ , 1,496.038 7 .191 42361

c below) ----- ---- 2,063.40 B4 1

S. :"5 .335

Detroit -------------- (Mlchigah~

: Id 896 56591

---------- 7

(1

29171146 4 :2 994

1

4D 2A2D :212 8o:M2

Indianap-lis llnd,,n,) ---------------- 1.666 990 5,734 1.603831 55426

Llui~111, -

Kentucky) - ----------- 3 ON 3Sjo 895959 32.997

1111-tou,g ntl) ---------- 5M.496 2.143 486 :728 14,11 9

Puld-st Ro

.Hm

---- -------- 9.334,971 n. 53 8.8114 .962 383 Sol

~bem-n D.I .I .) --------- 172,993 1 .026 157,724 ~:844

Clucag . She to) below) 2,853650 14.712 2,746

",in" 711:1271 4,385 737278 55 NO a "I

IIN

4o1j

Farg mnh ~7 as 74 14 784 13,296

Mu- k. ------ (Wdconwn) 1113A24

a .

52, 1,351,503 51,05

Omahu

3. a

- ------ 1

.~38. OB 405,365 29,057

St. Louis 35.265 1 o: 673 57.563

s Pau .6,17 1 :36 .01 9

I

Il,finm--) -------------- 145 .046 44,792

So nOL1d sea d)Nlow ---- --- 876.415 3556 833,643 38.060

South-St Refiton --------- ------------ 8.1 12,478 42AM 7.69B on M2,3111

Alb,q,erqu,_ ihow(M ..ic .) 339.968 1. 91 325,123 13084

Austin

-- Sea f)bel-) 2,197406 9,228 2 .1oo.531 85:243

Cheyenne IWy*(,,n,, .,,, 1 19:51 1,079 11 1,625 6.672

Da Is, -- So

. I) bar ........ . Is,

., 561 1,481 :772 78.172

D.

n"r -------- ----- (1111lddo~ 849

.773 s:5'582 Bda4ai 35.024

LOU N on. Flock . . . . . LA.I,, 153 2a" 524 .545 25.Mg

.na u 037,369 4 .696 om :621 37,988

Oklahoma City ------ (Oklahoma 777,803 4,1 5 733581 39.084

W.Chic. ---

;; --- 11

.666,17, 4.274 619 .680 41,375

W"t'"` A'gi

--- 292273 Moill Men .975 401,12 0

Anchorage - . -------- (Aualk.) ------- 113,654 1 652 111 .8 14:980

804" Ild .h .) --------- 233 5 498 2175)95' 31M

He ime Montana) 216,929 1,942 2DO.158

1

424 9

Honolul, . ----------- (How S .,,) 292.716 21260 281 .1 33 9 " .133

4 .322 Z318 4,16D .746

1,

OS Angeles ------ : .889

.- IA

L 2

p 0 ri-n.)

'nix . . . 09:236

=-Lb-1m) 291 3SO5 660:711 24,360

Portland ------------ (Oregon) ------ 1123 341 4,867 7 a

Ran, IL' .179

32453

I L,;;

" 1

225 1.2135 216 7,6DI

. 7 2

So Ition, -------- 372,058 7 357.138 12.655

San Francisco ------ (See (a) below) 21 1.86;,75 12 906 2 :743,OB4 IOIA27

8 Ill. (Washung-) 4 5:o9s wa s 45,819

off ... of as ------------------ IS? 1 1 571 In :"7 25,919

P .. .. Rt --------------------- - ----- :217 2 30,087 14.099

oth-- ----------- --------------- ------ 1 53564 U7 140~960 11,82 o

Tariffs for Surds. .. Shown Add.

Iab~ California - ---------- 7.183,993

111-i- -------------- 3,730065

It) N- York ------------ 5:57 'NO

ej 3,822

d On.. 3559.445

.144

11) T-- as ------ -------- 3,767,96 7

I Nei of 89.481 undellmebe f,nd checks .

35,224

73 1 1

S" 211 .:7' 6

18.259 ZI 579. 2 28 3

33.936 5.3m .806 156,598

17,475 3,4 1

4

1 :.231 98,952

14jB46 3 .69 79 111.106

47.866 3,5112 .303 183,415

Estat e

(5)

Go t

16 )

26.368 7.033

6,050 4.1 7

312 31

ISO

on 3.592

' .4 ID6

813 83

88 4

700 IDS

1 .442 198

129 171

2

3

.3'a

480

449

ad

1 sso ;4 8

678 M

256 39

376 63

49 17

3.001 ITS

M2 66

165 45

. .

. 51

390 74

117 27

1,531 253

285 59

2,732 323

406 52

566 56

81 75

55' as

266

125 22'7

4 .206

62 0915

1,134 ia

611 2

04 17

676 05

263

a" 78

395 46

.9 79

2 .357 3113

67 13

485 95

as 10

517 93

216 37 1

22

31

227 24

312 3

if 36 45

04 633

1

2

51 104

99 26

so is

1 .90 205

236 32

207 30

53 6

67 13

1,415 1 3 6

340 56

121 24 I . . . . .........

12 7 .zi

3 .410

1.583

3,97

972

1 .34 .

002

341

197

428

IN1 62

fill

13 3

E .clas

(7 )

55 .519

10,502

481

1 375 .

M2

2,059

I,Z76

I "

2 .100

2,523

243

9 .161 M4

947

2 .

.348

:69

M

1,792

I'll, ", a

aw

1,231 SM1

602

1 91

5 .9670

,014 "743

1,359

ON

354

7,81 0

322

1 .647

,lo970 255

"a

1,323

1 " 1 5

6(08

.396

1 .824 1 10

1

1 '309

543

430

all 646

430

"09142

290

4,~48

2,0113

357

593 1

62

41 5

2, 3 9

1 , "' .2

as1

4 :41

2 '55

6 .339

1 707

3217

3.103
13 4

Table 7.-Number of returns filed, by internal revenue regions, districts, States, and other areas.

13 5

Table B-Internal revenue collections, costs, employees, and U.S. population, 1946 through 1975

Operating Greek Coal of T. .

Number .1 ..old.. ..

Declare. F .. . I

. .. I oll.chome Tonal(The. : N..On .1

n,& d,1*,1,11C S . States and I.di- C.,,,.

1.. .1 Year nice Field

a

he,

are S. :.;:qw

s ad ~_ I by (6 )single tire w .1 ah', Penn- eltil'IdWel Employ Estate oil. E..W. (1) (2) (3) 01 (5) (7) (0)

"icts indicated In par,mh

'so, 1 701.1 n

: . .I . I ., M. ; I...- "Coll ship '."" .*the

,

State. hall .1 bet- of Isibl.) Is. I

. .:

Income I 171

. Is

. 5 59:,Ig5 :640 10 672 .096.9911 OA3 ~41,936 286.5 .693 5.144 54 549

94 . .1 . '03 16822 'g.108385.742 0.52 A4,695 270,28 52.830 "77, 4 :049

948 ------- ------ -------- 183 .731 .060 41.11U .542,295 044 1 47208 2843 52 1 43 4:662 477.4 1

(1) (2) (3) M (5) (6) (,1 (a) 19) 1949 . .. . . . .. . . .. 209.205,715 40 .461125 .019 0.52 149367 27017 5212IS 4 5 Is 4 .712

United States . total ------ . . . . . . . _ 125 .117 .10 183 .9119 .547 3 .031,219 1 .137 .941 10.295.10 24,756,630 215.216 20 .0114 1,430.386

1950 ----- ----------- 230.408 .200 38 .957 .131,768 0.59 152.271 255.84 55 .551 4,303 51 148

NonM

.Atand . R.9i.n .. . ......... .. .. . . .. .....

la,W4 .020 12 .143,043 695,257 139,959 1,05.759 3.754.177 39.1145 41,321 164,657 195, ------- -------- 245.869.536 50,445,656.315 049 154.1178 325.71 57,795 4 .030 63.765

1111n1I ~ug .. ._-: : : :__. : :

IS 1952 ---- ------------- _ 271S72 *.", (Cj ~1~** I..a 771 .93AGI 28,481 8 .581 81,473 216.187 21864 2 .143 15M 7 .192 659)09,685 .560 0,42 1,57 Sw 412.62 55370 3JB4 M

no 619

51 .525

.251 401,901 18 .541 3~403 47,012 134,198 1:,11 1 111 1~1:957 1953 268.590,806 69 .686 .535 .389 038 60:184 43500 53 63 3. 4 49.629

SW .n _ . . . . . . . . . . IM ..Ch. .H,) .. . .. . .. 3.519,528 1 :374 :,Ol

I 1 2 2

S 1

2 7 11:111 1~1:1162 32 ...0 B.,117 11 .292 916 1954 2611.969 107 69.919,990,791 0 38 1.6~3:02 428:89 51 :.Il 707 48 .704

2 :119 .2 03 62 so Sir N 294,453 710.9CO 9.412 5 .968 26 .314 1955 . . . . . . . ... . . ----------- 278 .8214,278 66 .288,692.000 0:42 931 399.50 50,890 2,675 48,216

.7 1 6963 1 :753 199,423 445,686 6~553 5,699 30,636

111hn He . :!C S 288 5315 69 06 .773 55 7 ., 19

"0"

an :?% 17. S 8:7816

. M "! - --- 2

2'565 25 IN 71 51 9 040 444.71 50,682 2 583 4 AIDS

.209,959 1 495 :495 63 .235 19,030 202:185 401,094 4:588 at I S: '1'51

,it I'C*O',m Mi ---------- 2 9B94 .710 75JI2 .649 .000, I'm 903

31 .117 .S14 4

IS

51,364 2:602 48 .762

Panth,han ------- IS.. (C) bar..) -------- 3,264~950 1 : 23 52 21P .102 33,898 359535 9a3.66S 6783 9 337,428 2 21 :22

19 --- .0 171 .g714000 0 38

.789 79.171 4;6 :.41 42 71984 IN

Rh . 21

59

.7 :.

I'aw 503,180 334 .129 13,370 2S79 38450 105.010 .977 1.1 .~ 7 958 0

174,882 111 3 50.016 2638 .8 .178

582 .579 388,814 19 .872 2,794 W280 115.041 842 4.166 . .. . . . . . . . . . 35.469,228 79 . 2 W 044 177W 446.73 WIN 2:633 47.567

lid-,

""I,

Region, '8295 5,

12

.215.005 -440 .373 139 .18, .1"92101 3.262,700 28.SU 29.550 -170.105 1960

. . . . 363.735.359 9~.774 .802.823 040 180671 507.96 60,199 Z702 47,497

S ."!_. . . . . . . .

. MIN 2 .154 .148 '49 .103 23Sn 236 .607 544 4 .347 5~12 2SAW 1981 4 ~11:295.236 94,401,086 .398 1 as 1~1:611 51 .91 53.680 3031 50,649 Nelalk . . . . . . . . __ 1~_ j.rey) ... 4,649,116 3,105.9!3 1!984i MASS 376.074 88SAOS 9.795 7.736 40.754 1962

. 0

080420 99 .440.839,245 5 536 53 09 56.510 3:35 53.153

"I,=onIn,, 4

2 27

:251 .548 2 .945. 9 M13 33,985 389.489 763.937 447 6.394 40.792 1963 Soo, 189 559 .74 59.486 3.562 55,924

.142 20 427243 804

:314 0.47 242

P IS9 5

416 196,413 202 3031 31,973 1 105,925

.395 .281 191

Richmond 2

55.604

.

:1 ;:1131:121 3 196s U79. 92.13 IZIBO.257.115 1 58503 59357

767235 1, 380 49,341 20

695 Won, mor- 362JO55 236

183,552 562,702 133 5,654 27778 1965 114,4M,03,721 ~49 303

.970 7531 2175 33294 75266

4

7w 931 5:125 59

.6387,471 12 194,889 588:95 60:360 3,'1900 56,570

.,1171 sooh*- R

.9" - -------J---------------- 17 623,651 Atlanta 612

11,724.436 354 065 1 1.23SA76 3.005.052 26,2" 3801 194.279 1966 624,861,929 128,879 .%1 .342 048 ;96 :816 17

52:798 22:'06'7 156,1911 625,554 21873 6,432 30.209 .. . . ":'1132 062

rIgharn":: 1

:7 3 1967 667:080.295 148 .374,814 .552 0.45 11' 14 .5 4

Bilmin 2 773,818 1,208 ..'.872 28.853 7 939 61~ 230 .1 2".1.

7.1 3.060

COW, g: ------- (SouthCarolina)

I . ~4 .261 98,357 396,898 1,596 .253 2 .1 :,1, 153 .636 .837 .66 5

1.014.349 26,625 2616 03 .832 3W,M

1

:753 2061

1 6 9190.3(ki

0 1 0' 1 Glams 11 ------- Jkkonh Cl,ol,n,) -------- 2,40923'.65W" Z021.11" 54255 22 4w 177993 653,643 3 31 .4 7S8,785,475 187 1 .559,668 .0 202.177 927.19 64 .507 4,037 60.470

n M

.

'1 6 599 5.435 9 1970 886,159.162 195 :9122',096 .497 045 204,878 955.31 68.098 4,356 63.742

. . ... .. 1

., 7

7116 - 615 m 5

464 19,D14 9*. 59J85 2611 2.134 1 .692

.1sli, on --- ------- 5,214 .996 3 ~3 .286 137,135 40.641 626,519 1 .131 .795 IZ 14,SW 45.1 6a 117 98 065.297 191 .647,198 .138 05, 207,053- 925.63 68,987 4 64.466 Naammil

. 7

:17 72 1

.

4

054, 7 .5 1 69,263 JT .mhe. do ) ------ :::::: 1:1 1 1.6 .965 35.385 24 .069 132.692 498.05 2.768509 3,933 26.223 to 12 390~411 209 855,7W .878 0.54 205,846, 1,004 .83 7 :086 :82 3 R. *,a--n-------------- . . . . .

. . . . . 56924 11.030.778 30.624 29 2 1 '8668

7 2 464 6

4 .308 2.985.555 25,594 23,695 1292 .102 1973

"2

:1311 11 37.787 .204,058 .4 Qnc,nna qt .9 2~0,410' ~,130.11 71Me 4 6 7 20D

So A76

log

2 179 .593 460 144 4 .638 4.505 5 1974 694 78,233 3 .5411 .35 1,0 ;5 .6 50.884 ; :Z112 661 268,952,253,6631 0, 2 .269.151

3:584.6432 2 5 3361 851134 22 685 77.306

~Sski 281

alto 628 :157 6,179 6,211 40'.07WO 1.75 1 .586 .570 .OOD a 203,622.725 .7n a 2

1

1 3

W,266 .90

Detroit __~ ---------- lMich,gal) 4.850,282 3 .,t48.610 110,057 1 .1~7 ~44 212 1338373 5,526 7,SU

54

.9" . 13,631 .375. 7

Imilmapol

Lo, ille .

.

.

.. . .. . (India-) - - ----- 2 .945,443 2,072)929 59,409 210.6 8 221 :129 521,M 5,716 5.689 37 -R-W

. ..... _ (Kem,Ckyi --------- : :: 1,7,17~169 ij 06 28.628 17,956 117 .796 35 980 2.436 2.900 2 233

a This figure represents actual IRS ober,ating costs for FY 1975, e,chisive of renwrilemems re-i ad ho, other, agencies for semwes WIhs,l.d WNIa The operatog cost bg,163 I

1

2

9.671 1.099 1.382 12

'em

.:::._IWmt Wginia) . . . . . a .005 661'2:310 15,812 7 .921 60,110 17'

Ifilden. %e __ --- 17 .777.829 11.979323 426.249 161 .126 1 .410

.574 3~397 .an

. me 46,926 2" 10 fecal years onor to 1975 may , some cases indwe rem,wrlements Mole amokens are sulbe-Ity small W as not to alter Me cost fig,res I, colm, 3

Abordeen . . . . .. . . . . . .. 401,232 252,015 10 .822 4.926 29,221 92. 1 64

Chic:p, (SeeMbliow) 4,944 .1,3 3,411 I .18 1411:0~21 41,166 4 1 ..784 821 .n26W 4 .:7'2'2 10 931 . .999 'Z

Des dines Ioll) ~ ----- 1 .74 .405 1. 1425 9,094 161.241

368 .

229 5.985 5. 71 25,967

111"IDk .l.) 39111 241899 13.349 4:1~ 21:1 91 '1 1 ~305 I ,

M,I . .u W.-n-) . . . . .. . . . 2. 673 572 1,795,M 68.449 209, ~26 676 . 805 5,.7 S.7 a '71

. g"S

46249

Omaha ------------ (Nb-k .) -------- got OSS 608.98~ 211.5922 11 .120 78,174 20 aS7 3,186 5.528

8,102

S , LoT ---------- (M .1-0 ---------- ~Mm= 2 .704093 1,794.13 58.4 21 .770 227,614 551~355 4~31(18 40.6111

S: P-1 ------------ (M-dool .) -------- --- 2249,666 1,540

.

678 6018, 20,901 163,190 42 SAM 43'47 32,329

557 16,397 1",624

,

SPY119field .. ... _ ISeelb)"Jol) ---- :.-. 1.703.075 1.143661 29: 3S 533M 4 .959 5,106 2 .238

on . . . __ ------ -------------

Albu A,stlr'due. lt. M"C-)

----------

Chat-

-:"

..n.

: Is..

Dan.

., Colorado),

Little R

N_ 0 Is;-kn&-_ . ::: :

Oklahoma Oty ---- 10ki,hom,) . --------

YkWichn , --------- (Kinses) ----

W-11 9 lm ----------------

Anchorage _ . . . . .

. IN. .ka)

So- lid-ho) ----------------

Montana) _ . . --- _

Honolol,, . . . . .. . . . . (H:w.ii) . . . . . . .

LM Ange es ------ IS 1.) Ind. .)

I

hc

In

P nd

R-Lek~__6 --------- (N.Y.d .) .. . .. . .. ... . ..

SV, "VC I .;'C'. 4's.").) ----------------

Sao"]. (Washtngion) bel-).- ------

offic. of Informed .. . I Ob-tion. . . . . .

Pueno Ric o

Oth. . . . ..

15.259.346 10.09. 3 ;1. 11 Ill... Lis" .210 3~31 91211 23 .6055 40 on 2712 .242

6N .422 4

1 1

974 812 37.448

2 1

52 1 181 .713

3,92 030 2,661 10, 88:361 452,862 259 .805 825-74 4 .842 1 : 15 5 08 :1 03D

2464 :400 150:889 6429 305 18,760 .:2'1'1 M 'N 9 1:547

1 079 78 1.961,886 63:665 46 .234 235 .179 715,603 4,500 7 .84

1 .4,

1 :517:T 1 030.877 39.192 19,069 118 .386 313 .922 2,536 4 .145 18,11291,

1,077.-2 70,482 2D.636 11.00 71 A65 247,721 1 .298 2 .597 17 '59'

1 887

. 157

1,245254 42,497 1 3,348 111

.406 4U'595 1

.790 2,717 27.

1,493.739 97 . SW

. ~ 111

1.515 1 ." 78 29 .7 3 25 .253 3091 4,352 ,887

796 121 .9113 306,674 3

:925 5

1 .399,388 1 34.604

3

20.347093 13.875487 435.309 250,. 76,.30 3.910 .367 30.27 21:605

7

4

.5

34 :31122 1233970

1 93772 133,885 4,161 25,1 7.865 39.764 182 21 . 5.155

464393 301 .381 11,178 5.771 3I .V4 102,400 719 1 286 10"

468:537 29007 12001 6 1171 3 :11 108. 8 1,065 2,364 12.1102

343:740 16:182

S:, 2

461 70S 91,3' 7 573 1.510 3A

7.553.109 5217,1130 ISO

a

IS 97,433 585,419 1,422,131

10

504 7M I . 706 OB44 50.328

209 059 828 .267 24 .720 160,859 198.977 228933 1.878 2.649 12756

S09 ~191 1,025,202 34 .023 '999 13AI 3 290:178 2,428 35 4 23.034

377.687 261,M5 OSW 3 .910 23.U5 71,765 346 026

634,469 435,229 14,566 7,422 39,392 125 .570 617 1. 54 1 .21 9

5,305,805 3 '618

.97,7 IDO

.049 71,460 432.880 1 .005,903 8,706 8.081 60.049

2.11 7 96 1 .419, 0 49.473 22.861

1

65224 424188 3.053 3,565 30 185

641 :7126 392.047 4.479 3" 62:727 1 70:"G 663 570 1 :240

251,320 71,464 748 47 11.223 167 .3B6 40 36 '76

390.3% 320.593 3,Ml 297 51,504 12,260 623 534 a64

Totals lot Islas . W showns allo w

Ia) , Cahtor 121158:9114 SJMA07 260,467 168 93 1,0102 2,427 .734 19.412 16.925 1103n

. 6

2 4

.628,547 141,576 5813 568,49'

1,1

III 111imn. .647 a 14,691 16,D43 60235

IC) kla~ York ---------- 10,11801841 0.972 .5111 463.416 91:426 W I .A'"' 2 .27767ISS 25.612 22915 93.583

1d) Ohio ----------- 6,164~1)25 4:328.967 136,718 41,556 481 .061

1

.) P.. .", :088:301 10,81,7 1 0,756 65849

;,nia _. . . GA20,893 4805 .494 92.277 54 .301 585.902 1 191 000 9.64 9.425 72,765

I)

T

-- as -------------- 7,005205 4A22 .907 132JO26 89.096 494,984 1 .541 .108 9.422 18,356 97 229

In.l.d

.

estimated I . dect-flon. not ..!I .bi. by M.M.W .

Fomn. IOAOX - not imi.ded.

3 For . 4818 not

. . il.bl;g. district

.

1-i'das

I me 700' . 7

taltatWo 1120 L all M. and Fomms 990. 990C. 990P and 99at not milable by districts

.M.,.des Forms 4W not -ilable by districts

or

I
13 6

Table 9-Number of returns examined by class of tax and by

internal revenue regions, districts, and other area s

Region . I'llics 111ol, I'd dr-ic l

Total - --------

.on M,~All.efi . .. .. .. .. .. . .. . .. . .. . .. . .

A "

. .ft . . . . . . .. . . .. . . . . .. ... ... ..

. h . .t .. . ... .. .. . .. . .. . .. . . . . . . . .

Can,,., -. . . . . . . . . . . . . .. . .. . .. . .. . .. . .

ood . .., -. . . . . .. . . . . .. . .. . .. . .. . . .. .

South .. t - ------- . .. .. .. .. ..

We ., or . . . . . . . . .. . . . . .. .... .. . .. . . . . .

W.-O.e ., ... . . . . . . . . . . . . . .

N .-AtI.M11 A.g.-

mbamy .. ----------------------------

A gu .,. . . .. . . .. . . . . .. . . . .

Boston . . . . . . . . .. .. . . .. . .. . . .. .

Brooklyn . . . . . . . . . . . . .. . . - --------

Buffalo --------------------

lu,lin%,*n

N.M

.

Manhattan . . . . .. . . . . .. . .. . . . . .. . . . . .

Pon . urn . . . . . . . . . . .. .. . . .. .. . ... .

PrmAdenc. . .. . .. . .. . . . . . . . . . . . . . . . .

And- S-ic, Center B, . ... .. MXA.UO.k1-n S .MF . Cm

Mi. Region .

,.. .,k . . . . . . . . . . . . . . . . .. . .. . ... ..

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

Ph,ladelph,a .. .. . .. ... . . . . . .

P tstn,,gh . . . . .. . . . . . . .. . .. . .

Richmond . . . . .. .. . . .. . .. . .. . .

w! 'i'glo. . . . . .. . . . . . .. .. . . . . .

Ph%delphia Ser,fic. Cnl.r .. . .. .

so,dlheasp Regiom :

A lent. . . . . . . . . . .. . .. . . . . . . . .. . . . .

a

!rlmg~am . . . . . . . . . . . .. . . . I . . .. -

CZM

a

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

Greembo 0 . . . . . . . . . . . . . . . . . . .. . . . .

J C .On : . . . . . . . .. . .. . .. .. . .. . .

JacAlionville . . . . . .

N

Atlanta rv .,hv ,

C=mphis Sam- Cents M . . . . . .. . .. . .. . .

R.9 n~

C-irmat ,

Cl-el,nd

- -- -

Detroit - - ----- --------------- ----

LOW .,611. __. . . . . . . . .. . . . . . . .

P.,J,.r-L _. . . . . . . . . . . .. . . . .

0-n-li 1~i .. Came . . . .. . . ..

idenist Region :

A .,d se. . . . . . . . . . . . . . . . . . . .. . . .. .. . .

chDII M1Pmai* g : : : : : : : : : : : : : : : : ::ww :,

Fargo ._

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

. .. .. . . .. ..

Mil-kad . . . . . . . . . . . . . . . . . . . . . . . .

0-4 . . . . . . . . . . . . . . . . . . . . . . .

'S ~:

L W. . . . . . . . . . . . . . . . . . . . . . . . . -

PW . . . . . . . . . . . . . . . . . . . . . . .

city

so

Choy- . . . . . . . . . . .

0.11. . . . . . . . . . . . . . 1 . . . . . . . . . .

Dan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Little Rock . . . . . . . . . . . . . . . . . . . . . . .

No

.

0,1-. .. . ... .. -

Oklahoma City . . . . . . . . . . . . . . . .

its

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

Austm S-i h .. Center . . . . . . . . . . . . . . .

We-. Region :

A'cho"go GO

Hon.ww

Lo Ang .,;;"*: : : :_-: : : : : : : : : : : : : : : : :,

Phoan.. . . . . . . . .. . . .

Portland -. . . . . . . . . . . . . . . . . . .

R-0 . . . . . .

11 1k *

I

'r. ..CC

San

%

S..M .

S"WG;wt; ;

Md .% S-i .. Cant .. . . . . . . . . . .

Total ImINW-1 Fiduciary' C,w,,ti,, Estate Gif t

2,495 .705 1 .943,256 K757 IMASO 48 .94B 13 .073

43$ .M 349.827 3,470 27,765 9 .216 2.054

325,201 252 .647 1,145 24.MI 5 .602 1.566

345 .7M 276,460 1.213 18,455 ti .515 2.581

242 .119 176.60 1.025 19.963 5,374 1 .2 .

"7 .Ul 216,273 1.22S 24.153 8 .675 1.987

288 .560 221 ..B1 1.462 17.139 5 .a2fi 2 .09?

SD2 .597 423 .308 2.201 21.9911 8 .370 I.W.

26 .743 22.21 1 10 an 370 39

20 .691 17,339 '09 793 4~ 7:

10 .293 7B74 61 S" 1,6

60,221 43,94a 67 4.119 1 .104 242

107,625 92 .792 162 3.621 2,186 364

45 .476 37.059 3 10 3 n4 936 30.

M '305 287 "'28 4.330 2 262 65 30

419 1457 1:.141 27

110 .385 80 :44211

' ., to

. '68

2

78 '71,

9521 7,696 80 654

aigo 6 .568 4a .013 " 7 1'6 13' 1

12914 12 .455 . . . . . .

. .. . .

. .

. . . . . .. . .

. .

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

. .

0 .619 10 .600 . . . . . . . . . . . . . . . . . . .. . . - ------------------- - . -

58,233 41 .901 4 3.930 873 342

97507 77299 203 7.6 1 1 .784 378

80 .175 62 .946 171

5744

1,330 285

3 018 24,855 164 3.075 722 315

39 .329 31 .472 12' 21 :41 3 730 230

6 .679 4,136 70 901 163 to

10.260 9.935~ ---------------- -------- --------- - --------------

60,663 36 .W 237 2,8M 664 351

32 .026 26,437 123 422 336 im

22,667 18,690 54 ~:458 3 1 76

50.853

4'

.51 9.

2

,

734 681 N3

21,749

1

7246 95 1 ~366 26 , 135

106,866 65 .914 476 6.407 2,552 1,343

424 9 34271 134 2,271 682 19 5

9:426 8,781 . . . . . . . . . . . . .. .

. . . . . .. . . . .

8,977 OR96 . . . . ------------------------- -------------

36815 24 . 47

.

159 1:17 719 "1

56: 152 39,425 378

75,745 58 .386 4 4ge 1 .652

1 3

1,249 Z

36,641 27,974 169 1 066 1,348 185

20.20 15.145 DD 1 :934 569 163

10,816 7.790 BE I~ 383 260 so

5.682 5,473 . . . . . . . . . . . . . . . . . . . . -------------------

B,355 4,402 25 333 255 23

WU6 68.

4

to 338 7 , 9" 1. 9' 356

20721 12.439 115 2,400 1,141 300

6:854 4,159 9 323 U, 74

36114 28,754 102 3~393 912 228

15126 10,142 134 BIB Boo 275

48.222 30,763 172 5

.

1 1745 ~ .314 370

U,420 23046 30 B04 .0 9 2M

22,355 16 .842 wo 1 ~368 039 149

1 8,368 16.516 -------- ------------- --------- -------- ------

738, 13 7.236 30 429 93 22

29- 55,992 414 4.848 1,442 514

3 ~271 2.412 27 231 91 22

65 367 46.632 483 3.469 1,196 756

24.931 19.356 4.

1

. WS 537 1 36

14 '25 '29 ~:3'

2

17

:538 14 92~ 56517 2"

'740 W120

65

23,72 18,289

1

29 1 .903 703 1 73

24 . 617 17,701 168 1,592 646 145

9,749 8.722 . . . . . . . . . . . . . .

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

. . . .

. . . . . .

I

i5os 5:935 11 245 15 . . . .. . . . . . -

708 6 U 24 360 167 11

11,222 9Z 4 666 164 4

3

5~43 7,971 43 9 .6 2 111 51

21 W7 186.704 902 878 3,601 612

25.2U 22.177 145 06 425

101

22,7N 17,589 1 08 i :289 529 W

12,790 IOBW 12 584 1 56 79

,~2

" 0 1 6'

1 ~ 4

.2"40 2 W 249 4

.335

Z3 .6 1

40:11 30473 188 2.105 750 "1

Ili 729 14.393. ... .. . ... .. .

. ---

10

.742 8B5 ---------------:~ :::

E.O ..

E .Pl- E,ompt Panel

- " 02' ". ..

95,119 110.933 22.166 63.562

10,989 14.597 4.209 14.715

11 .612 12.n . 3 .303 11 .978

14.543 15.87, 2.7610 5.975

12.466 11 .361 2.1130 . .193

13.445

" 3

.305 Ig714

14 .321 IN5*55 3 .053 5.614

17 .274 17.BB3 2A24 7 .373

503 2.655 B4 ------------

IN 899 --------------- - -------

W 1,117 ------ ---------------

2 .212 1 .957 1,046 4,015

1,926 3 .115~ ----------- 3 .659

1 .715 1.926

203 3'D: : :-

I , 568

725 2 .663

212 672 ----------------

3 5 273 ~ ------- -------

459 ------

3 .016 1,723 1,499 4,537

2684 3 .819 ------- 3 .6 9

ZON 2 .129 1.`a4i 3,762

I -

21

1, ;43 2 1 3

113 2 0 --------------------

325

. . . .

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

2 .524 .885 2,760 3,396

1 .247 2,325 ---------

950

2,881 ;AO------- ::: : --------------

892

1

746 ------------------------

3,273 4:348 ------------ 2,579

2.010 2 92 ------------------------

64 5_ _ ------- I- --------- ----------

81 ------------- -------- - ------------

:~794 1 .056 3. 60

'M ' 993 2~

4,373 3 "

372 2

.578 781 3290

2.216

1 .2 5 152

'82 93 -------------

209 --- ---------------- ----------

6 667 ---------- - ------------

761 4.274 703 4 .547

2,18446 2,17 1

1 ~634 . . . . . . . . --------

; :3,921 1 :55 ------ - -------- : ------

2.~ 2"1 l'(04 3,579

912 2.340 1 .516 2.588

; .223 1 .734 ------------

.852 ---------- -----------

218 585- ------------ --------

2 .374 3,283 1,494 2 .933

286 202

. . . . ------ __

3711 4 :3 1 1,559 2,681

:384 1113 : ------ : : : ------- : : -----

553 dj~ ---

I 267 2,809 -----------------

., as 1 ~2---------------

224 1 0

.027

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

155 147 -----------

'20 461

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

419 29 ---------------

270 419 ------- ----------------

3,774 5 .665 1257 3.434

432 " I ------------------------

1 158 1 93 ------------------------

541 560 -----

685 575

4 .406 3,949 025 2.289

1087 2,997 542 1 .650

~,3W . . . . . . . . . . --------- -------

A91 ------ ---------------------

-Table 10-Additional tax and penalties recommended after audit examination

by class of tax, and by internal revenue regions, districts and other areas .

(in thousands of dollars )

Region . -W.. an.., . and di .111 .1 Total

Total ------------------------------ 5.310,628

No"h-Ationlic -------------------------- 1 .168.400

. . . . . . . . . . . . ------------ 8~11 .31 1

S.-.- . . . . . . .. .. -------------------

Contra -----------------------------

hi . . . . .. . . .. - .- - -

S. .h ...1 . . . . ------------------------

West., - -------------- - -------- . . . . . .

International Ope,stio-- ----------------

Non~Aftmlc Region :

Albany - .1---- ------ -------- ------

A~g B .- - ~ -------------

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

Brooklyn --- .

Buffal- ---------- ---- ------------

Bu,fington -----------------

H-ford

Manhattan

P . . . . . . . . . . . .

Pro,i once --- ----------

A .-Se-CrBrOokh. ..hSo-CenMid-Adantic Region:

B It-re - . . . . . . . . . . . . . . . . . . ..

N-k . . . . . . . . . . . . . . . . . .

Ph,ladelphw . . . . . . . . . . . . - . .

%Isl . . . ----------------. - : - :

R Chlond . . . . . . . . . . . . . .

witIng- ~ ------------

Ph deiph11Sa-ceCdm,r

Stind""Ist Region:

Atlanta ------- ----

B-i n

mb ---- . . . . . .. I ------------

Green. o ---------------------------

J ck,on ~ --------------

Jacio,-, lie -----------------

hluh~,11 - -------------------- . . . . . . . . .

Atlanta So,iCs Center . ~ --- ------------

Memphis Seic, Canto- ---------------

Central Rsgpon~

C...mwi . .. . . . . .. . . . . . . . . . . . . .

Ci..l.nd .. . .. . . . . . . . ------------

Detroit --------------------

1,%,,ha-fi- -----

Cn-nafi

111dowat Region :

Aberdeen . . . . . . . . . . . . . . . . . . . . . . . . . .

D.

Fargo ----

01 he ----------------- ----

KLO 1. - ----------------------

S Pow --------- --------------------

Springfield -------- -- ------- ----

K,nswC,tyS-wC,nI,r

S.,allowest Flogjan:

Alb,q,,rq,, . -----------------

A.aun . . . . . . . . . . . . . . . . --- : : : : : : : .

Cheyenne --- . ------------ ::~ . .. . . .

Do I as . . . . . . ------------------

D- r -------------------------

Little Rock . . . . . . . - ------------------

Nmo 0,1dam, - ----- - ----------

Oklah-Oty

W, hito ------------ ------------

: 'NT1

63CIrthy '29 1

511 .286

1112'

52,710

%638

"' a" W2.247

2~

08

86,732

to 507

; ": 1 4,3

10 581

202 .786

2877 1

1 62 :7609

l5a ..

1 .507

65486

31202

W,7M

32 1 8

305 .255

882 4

1 2 :878 1

11 .176

97 .590

121 :171

904

53 M425

14I ~.2"

.5 1

5,06,

M7 .99 0

47638 4

~738

48,475

32,920

79.951

120.511

4C 116

15,37 5

6.146

148.808

2.358

121,113

29.755

25758

55*64

48190

A-1 n Se-, Cents - ------------ . . . 15 :02

yeselson Region :

A-0,age ---------- --- 413

a - ------ . . . . . . .. . --------- 29 3

He,..

~onomu 12' :I' 986

Los An ----------- 36"48a

Phoen,r, ----------- 20 .330

PoMand ---- . .. . . . . . . . . . . . . . . . . . . . . 25,498

Ran . .. . .. . . . . .. . .. . . . . . . . . . . . . . 50.911

as"

:- : : 25,452

So . 1~.`nc-'. . . . . . . 144.566

S-1 - -------------- 63, 96

Ogden Samoa Conte,

3

482

Flean. S-i

.

. Center -------- . . . . . . . . . 17 JD62

- Laos then SWO .

584675

IWI.id,,l Fid-iOU CoMetal- Eanal. Gift

1 .395.222 21.275 2 .932 .941 S56.620 67.041

279.122 3.1154 701,125 103.1116. 7 .940

1" 4'

3 .265 SQ.75~ 59.046 ~530

2=317 1.922 272ABA 104.954 10 .097

131:IS4 2,31? 397 .630 $1 .494 6 .591

'32 no 2.769 301,532 6'

. 276 ,

.830

14 .416 2 .833 240 .311 ?S,760 23,4135

n .668 4~305 346 .2114 82,169 7 .59

16 154 9 27.170 11,934

6,479 to 42.967 2.029 108

3,674 57 4,793 722 16

27 44~ 1,12' I . ~a:l 7 140175 1:137.~4

59 :310 2 894 21 04

16,947

1

120 52,324 6 .69 511

1 13

:7'1 I'l U4 '5 28

,4

3. 368 55,113 14 .3 5 6

113 635 431,594 43,061 2.552

31, all 2 72 1'097 39

'a

:1

3 .V5

248

773 . . . . . . . . . . . 64

4 . 1 --------------- --------- --------------

~4 .111 . . . I . . . . . . . . . . . . .. . . . . . .. . .

. . . . . . . . . . . : : . . . . .. . .. . .

28 .676 353 46,441 2,455 26 ~7.69B

53 .122 636 125 .4 6,0W 52'

U .832 539 228.919 13,672 729

15,096 1,220

1

222

1

2 4:761 1~230

1 9

.883 21:12 5 '05 570

33 01

1

. 330 1,208 20

11,479, . . .. . . .. . . . . . . . . . . . . . . . . . . .

2 04 160 25.380 6 799 1 .023

155.420 1 .271 ~4, :I 4 :

4

"1

3~2

10 663 0 33440 IN

24:79B ~11 57089 5644 606

1 1 D68 N 5 :047 4

99.573 188 21.352 3049'956 11' :473 a .2

a 71 37.765 090 224

M

. . . . . .

12

14,167 .. .

15 .420 173 71 .514 , 7 5 7392

20250 213 17:.11 '793

29972 6B

2~2

'6~ 6 113.716 442

" '

27:1 1 .249 38,573 " 4 .526

17328 430 26 .949 3.:'7 2 319

5938 21 5 .802 1.809 154

,5,512 . . . . . . . . . . . . . . . . . . -.- - . . . . . . . . - -

2 " 23 1,426

46,2

a 73 173

s 1.537 151,07 22.216 2 .316'0

.745 .126 20.727 9 a

, 2. :.123 2 1 051 N29 6

U 58 21:874 6, 6`1 851

8 .504 67 is.1 66 4.517 342

1 7111 433 11:~11 12 No 711

4 :

" .

. 93 17 5 62 6

7335 41 29,795 5:37'08' 3M

1 5 :235

. . . . . .

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

. . . . . .

.. .

2 .680

29 .71 33 129 4 .1 :7 2388 4,239

'.M 2

571 .5 4 8

31 .848 1.089 55 .144 21 .387 1 .784

8.996 389 10.610 724 328

8.207 95 11 290 2 :174 2.640

13123 314 29:384 6401 1,689

9.129 32 27 A 90 a , 77,

221 .408 372 17.OD6 4,248 11 .766

4.983 ------------------------ . . .

. . . . . . . .

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

1 .894 11 2,079 53. .. . ..

2 25 "4 '62

4,804 1 a 3~O 6 910 51

1325.352 28 5,815 1,124 55

.829 1 .247 163,033 39. 00 1,499

9 SO 6

. 1

112 2 794 237

75 1. 3:673 122

11

U

48 34 196 2 27 766

13~41'4 53 10:01 704 1 506

61 :36 .1 1,782 55.509 17,403 41

1307 883

29

.84A 12.1560 4,277

~3.432 ----- .. . .. .

. . . . . .

. . . . . . .

. . . . . . . .

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

6,681 ------------------- ------------------------------------

E . ... .

Employ.

137

E..Mq l

105070 197.558 32.093

'4" '

7

31 :34 . 111" 2 .1'4

.

11 .576 45 .298 274

l ..069 6.00 ON

11,337 26.450 .72

10.337 11.479 4.611

1 0 Is 1 :3, :'2 IN=. T21

121

79221 : : : : : : : : : : : : : :

'93

.

2 :111 . . . . . . . . . . 408

317 2 1 85

658

28 106 . . . . . . . . . . .

48 862~ . . . . . . . . . . . .

4,842 52 .160 349

595 100

2 . . . . . .

1 .94D ,2 :04 1.971

N 977 7

6

72' 2

. 74 167

17,146

1o4

10 29

1

28 . . . . . . .. . .. .. . . . . . . . . . . . . .

3,16G 3.663 246

1 .13'565

2.273 2. 1 -------- -

308 9B48 . .. . . . . . . . .

2,799 25.761 .i1i

1,410 1,987

29

. . . .. . .. .

6 332 1.266 1.279

.343 1 .56o 68

876 8

2:053 ~

:' 5 62

20D . .

1 .265 619 2

169 364 . .

140 . . . . . . . . . . . . . . . .

1 .453 6,43 ---------

B5~ 7 .8" . . .

42 274

461 3 68A

4. 879

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

7.257 2.3DO 221

762 2 1 :179 2.812

1 34 2 333 : : : : : : :: :::: ::

40

. . . . . . . .

N J15 -----------66

824 79

9

2 .266 3 5 63 ---------- . '()

1,022 1,157 3

926

41

3,959 786 1 ?1 5

783 1

.

242 1')

41641 . . .. 2,231 : : :. :: ::: :: : ::

22 65 . . . . . . ... .

287 2

113 147" ------- ------

5 .1 52 s.I...... . ... . .fi-;io

362 W

564

13 458

846 049

"355 5, 010 1 ------------ ~8 .7 ;

1 .172 962 is

38, . . .. ......
13 8

Table I 1-Appellate Division receipts and dispositions of cases

not before the Tax Court (nonclocketed cases )

A . Progress of work

Pending J.1, I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- ----------

Recen,ed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. ------- -------- ---

Ont"..ol of . .,.I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

By agleam ni . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unagead : 10mmsmosments . claims, -cisa . employment . and offe- citmic-isene,ii,clion.) . .

By taoicayer default on Statutory notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : ------- By Nt'no, to the Tax C'-tMm,femaJ to clioaacw ziit~s+ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pending Jlm . 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B . Results obtained in dispositions

Metho d

Disposed of. total . . .. . .. . __. . .. . . . . . . . . .. . . . . .. . .

By agreement . . . . .. . . I . . . . . . . . . . . . . . ------ - - . . . . . . . . . . . . . Una,Qreed : tO-assessments . claims excise, errictoymont .- Old- compromise rejection,) By 13Y da'ault on statutory notice . . . . . . .. . . . . . . . . ..

Pat'norto ..

To. C-1-ranst. ..W to docketed Stall, is _ - - . . . . .

.

. . . . .

Table 12-Appellate Division receipt and disposition of income. estate and

gift tax cases petitioned to the Tax Court (docketed cases )

A . Progress of work

status

P nd J 1,1 - ------------ .. . .. .. . . .. . . . . . . . . .. . . . . . .

R: l,.d,ucnl, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .

Patti . . filed in -pon. . -

District Directors* Statutory notices . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . App,11,1, D.-lon4 tst,-V mll-s I . . . . . . . . . . . . . . . . . . . . . . . . . . .

disposed .1 . total . . . . . . . . . . . . . . . . . . . . . . . . .. .. . . ... . . .. .. . . . . . . .

By .11P .latedl ingninsi

By d 16 MOS U I by Ihe T ci; U, W eye r 'd' .' 1* a It . . . . . . . . . . . . ..t~ T"W before In' Tax unt on the m-ta . . . . .. .. .

.

. .. . . . .. . . .

Pending Jum, 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------ - - - ------- -------- -------------

F.Y . 197 5

Anei stated,, 11101., ling-Vis report 4111, lot (tho-rd cost. ..

(1)

Deficiency anid penalty man, (2)

22.551 1.068.121 199,396 18,629 IAW.300 6s.326

I .A92 1 .5 51~290 12718

16 .080 1,155,305 70.501 l'W 42, 71 1.527 7519 47,160 0

2 ~682 314 .95s 0

191 .604

Nerri .. . or

(4)

Aposi call mnintiflis.

(tho. . .not aelan.)

0 .. .. .... . W penalty nl

(2) (3)

21.492 851 .52a 91

16,080 472 .966 V.477 1,979 41,087 3.412 751 43 .OM 0

2682 294 .462 0

F .Y. 1975

....m litillindn,

14,11 *1 (Ins,. . ..d as

(1)

Diri.xii Olit-seens- and penalty (2 ) 1* 1

12,588 2.00T.295

11,206 667,760 mse applicable

6.729 369.153

2.477 297.997

8.535 56S.766

6. 26 3n,753 not slogincoble ~1642 9 7 "312855

.158

15.250 2.ioa,27 9

IDIfertincetronntatNe ll,tmfter,edlodocketWWatus,$W~bye,clW,ngdm,,ctd,,wtors'sWi~oymt,c~wnvdeWbyApMliale .nga~daymmus

B . Results obtained in dispositions

Mathold

Dilis-cl Of . total . . . . . . . . .. . . .. . .. . .. .. . . . . .. . .. . . . . .. . . . . .. . .. . . . . . .. . . . .. . . . . . . . . ---------------

By S!Mullnedl agreement . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . .. -------- - --- . . . . . . . - --------

81 d byIn* Is, court 11 111-yll dIIIII

I

,,.ad Wrote the T.. OuM on me . . .. . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . -------------- - ----

Represents imb-til beliti .redl

Number of Cos "

(It

(th.-W dollar.)

oish'itinicy 0--ase.

and to... Ity imm,

(2)

8.5:15 n5 .272

6,426 112,282 not applicabl, 1 .142 11.45 5

957 174.535

Table 13-Appellate Division processing of all cases for 1974-1975

(income . estate . gift. excise . employment, and offers-in-compromise )

Pan :,g J .1y.1 . . . . . . . . . . . . . . . . Recd W ~

St.t ..

Disposed 1. total - - - - - - - --

By agreement - - - - - - . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. - - ------------------ . . . . . . .

Uragrsad~ O~ ...sarsern-M claims. 0-11 . employment . - or-m-comp-nn, rejections) . . . . . . . . . . . . . . . . . . . . . . .

8 taxpayor detault on stal,tory notice or dismissal by Tax Co M ------ -------- - . . . . . . . . . . . . . . . . . . . . . . . By mtyl,,n to the To . court - - - - . . .

. - - *

.

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

T,i .d,n In . T . . Colurt . . . . . . . . . . . . . . . . . . . . .

Pending J .n. 30 . . . . . . .

Table 14-District conference activit y

C.. .. pending J.'y I Co... nr_-d ~ Cnl..n- c ..,I.l w

Ninnoe, agreed

CasesAgreet as a W,Cent of total pending J.. . 30

Table 15-Overassessments of tax exclusive of claims for refund

N..b.,

Field A.dit

16821 17269 11 .11 ;

66, 11.2 4

1974 197 5

7 .1.1 103,473 122.399 nd,~,dinll and F,d .cltiry . .

. 73.5 7 97.5116

,,,,,n 16 .677 11,46~ 5,892 5.9W Gill 665 E.c. . . . . . . . . . . . . . . . 4612 09 4,145

E 1., ..nl . . .. . .. . . . . . . . . 2.637

Exempt Ong-at,ons . . . . . . . . . . . 08 -1

Exempt organizations -ti-y tmnst,,rW 1, new office or employ,, plans and .. .mpl ongim-lons in December 1974

al .irmins, .1 C ...

1014

34 .768 30.066

29.72 2

22,300

! :'.0'3 2S 9

99 7

35.11 2

Off"' Alidi n

1 ':"7

26. T7.121 21,028

'so.97 5

A=r R ended (Ireu197... d4 .d.11 .,.)

SM .454 $2.015 266.706 30.5811 2,723 9.857 1,60 9

962

139

1975

36,139 29635

U.02 7

22.506 979

1

2:81" .682 96 7

U .94 7

F. Y . 197 5

To, .,

2.607

43~13'90

VAN

74 a

IS.22 1

1975

$302.7% 71,91, 165 .823

34.406 1 .694 6 .708 2,24 8

-1
140

ax

Table 16~Workflovv In the Internal Revenue Service and the courts, fiscal years 1974 and 1975

To . roh.m . tried . tota l

their I. . . . . . . . .

Corporation income . . . . . . . . . . . . . . . . . . .

E"WormdgM . . . . . . . . . . . . . . . . . . . . . . . . .

Employment _. . . . . . . . . . . . . . -1- - . . .

E can . . . . . . . . . . . . . . . . . . . . . . . Other hhicin;, - -. . . . . . . . . . .

fineeme. Estates aW GIft Tawas

Number of help ---------- ----------------------------------- --------------------- -------- h drns -mmeal by Aorst D,,,sio,

Return, - is jualmems -eased by Aud,t D,,,,- - ----------- - ------- ---------- -------------

DhMOwd ol by Audi[ 0-o,

Agreed - ------------ - 0 or dettrufted . ------------ -------- ------ --------- -------------- -------------

0m., - ad to Appellate ------------

Numbe, ol r;ton-- ----------- . xiinx ned b-y'Ex 0--"1 -0. .g,n,o,,t,o, D,x,s . . . . . ------ --------------- .o, --------------------- ---------------- . . -

'"ar's Popowd

.y, Ompt ~- .Vpn()-O ------- -- -------------- ------------ --------

N .rhmaexamMWbyEmb1oydaP1,hS -on --- . . . . . . . . ----- ---- ------- - --------------------------- --------

Returns win adiushnents proposed by Employee Plans D.,.-- -------- --------------- -------------- ----------------------------

Ch,"

Total a.

.

- in -1- n

Doppead Coush d V by aPpreltin. dinaxam, Agreed. daral a enthused .. ... ... .. . .

ongeol , jumulonen :

Us c.u":

Total P.11hamnd 1 . To. Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dismissed . . . . . . . . . . . . . . . . . . . . . . . . .

Saffifintl by ithpulint- . . . . . . . . . . . . . . . . . . . . . . . . . . ..

. . . . . . . .. . .

Settledby To, C-helecupon

Decided by To, Court, but topolould . . . . . . . . . . . . .

DoW I cMum, and Count It Claim .:

TO I filed in district coun, and Court If Claims . . . . . . . . . . . . . . - - ----------- - - - - -------

gain d in district courts and Court of CoMrs

CO .D-dee by dilitnill colns and Coun of Cu-s

in P-.,. :

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

Sellus of appalls decolo. . . . . . . . . . . . . . . . . . . --------- . . . . . . . . . . . . . . . ------ ----------

F=Yc'-" riyorao, 1, Go-mmint ' . . . . . . . . . . . . . Fairo . . . . . .

.01 . 1 . 1 pator . . . . . .. . . . . . . . . . . . . . : - .

. - -,*,*

: : . :-, - . :*, . -: -- ----

Moidif - - -------------- - -- -

: -. . . .- - - -.- -- - --------------

D.,UdbYcw"$WaPPIallblt" .~Wb,Supre~9C,u,t

, - - -*" : :- :*" - - : : :- *: :~* .- -,~ - - - - . : :-

Supreme Co 11

: Settled by Sonn- Court Inch;- . . . . . . . . . . . . . .

Fraud C ...

RICII-d 11, im, litigation in intelligence ch-l-ii . . . . . . . . . . . . . . . . . . . . . . . . - ------ -. . .

Disposed Of by P'.wCp intelligence ol,xilt

P'. .,u: :Ol recommend .

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

n no

I-rhm no

Disposed! of by 0(h

.

of Chef Caunwl :

PrOsocul- not oriented . millu-9 cases d,cl- by In' Done, min't Of Just"' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PrOse-hOng -------------- _ ------- --- ------------------------------------------------------- --------

1974 1915

121 914073 125~1 RETURNS

17.100

83 .028 .941 85,518719

1 .981 .380 2 .132,647

464 .193 476012

241 . K221 24.756,630

W,220 1,430386

1030,118 10 .802.506

?,960,375 2,171 .923

1,422.190 1,667,~92

1378.092 1 .625.147

32.6W 28124

11 .498

13

20 72' .487 22,168

4,731 6247

37,671 65.562

4 .599 6225

CASES

is5. 69 15.6al

.800 15 .924

6.799 11.206

9"

1 .143

6.193 6.436

1 .100 96

257 265

1 .133 1.018

552

606

471 414

363 35e 260 250

96 52

17 !ix`

4

4

8 .078 11 .26

2 . '14

4 .761

2,760

5.971

272 mi

1 .423 1397

Table 17.-Amounts of revenue involved at each level of the tax system . fiscal years 1974 and 197 5

.I . .

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

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

Withholding --- . . .. . . .. . . . . . . .. . . -- ------------- --------------- . . . . . . . . . . . . . . . . . . . . . . . .

Olh-- ------------------------------- .

.

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

. .

. . . . . . . . . .

C.,parst- hp.m. I. the . . ..

Estate and gift taxes ------ .

Employment taxes ---------- . . .. . . ---------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---- --

Excel. ..as - ---------------------- . . . . . . . . . . ----------- -------- . . . . . . . . . . . . . . . . : : : .1 . . ., . . . . . . . . .

Income. Estate. I'd Gill Tax,,

CMI C .. ..

Addhonal tax and penaultres dapesed of in audit dwinons by agreement . payment or detour ----------

Add(onal . . . . : ----------------------- tax and Penalties dsposed of exempt organ,atten d-on --- ---------- ---------- :,.- --- -- ---- -----

Adonionatta, and penalties disposed Of OMPlay- Plans d-hl- - ---------- ----------- - ------------- -------- - .- -------------

Additional to, and pernaftnis in cases diseased of in aPpellaus chvioms by agreement . Payment or ddaul - ----------------

Is, and Peroxes determined by settle in x

To, a

CZ m TO Coup . . . . . . -------- . . . . ..

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

C~smpenahes determined by To. w decisions

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

Dec laws on me"M

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

To. and petolues delarmnd in cases decided by the Soph,me Cwh and Coons at Appeds ---------------- --- -----------------

Amount in eiricate eut net ratunded to taxpayers as a -11 of final achon en rehma suits ------------- --------------------------------

Fraud Co ..

Deficiencies and penalties in case, doposod of I, inalligame, di

Prosecution recommended --- --------------------- ----------- . . . . . . . . . . . . . . .

PrMsecotion not -ninted and cause declined by Department of Just .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .

Additional tax proposed by employee piano ch-ion are mcludenJ , Me acdoonal I& P,Oposali by audit and ioernol organization d" ..

.

Zkocts amount detenhMed in all Tax Count decisions, xhicludng these subsequenty appeale d

Table 18-Datermination letters Issued on employee benefit plans, fiscal year 1975

Ito.

Deterhunst, n letters issued .,in respect toI Initial It ahl-hon :

a Plane app-ind

I. Plans emapp-d

. . . --. . . .. . . . . .. 2Z038

139

, N-ba, of p-hlipaung employees in plan, so ... . . . . . . . . . . . . . .

. 254.7hl

2 . errmnah- --- ----- - ------- --------- . . . . . . . . . . . . . . - ----- . . . . . . . - 2:3

3.

Am

an hit 1 8. . . . . . . . . . . . . 4 Inxern 1,2

1.

Ce,,: olow ath-I Issuance of d9bonameto m

aloo, di .,,awI. . - - - - - - ~ - - . - . - - - - - -

delta,.)

191 .

26C 142 S2

.90st

1 '

2~11

3

.

112

41

7.

4

625 to 1 :.94

17,110

2,253

500

123a

2210

77

3749

Ph.fil' .1ohng and P

ithock be . .. .an. linmitty plan . .in. or .

2 .42li

25.560

205

1 001 "

Z1121)

12.3

M7 7

3.753

14 1

197 5

293.023

156,399

I Z2 103

34:296

4 5~ 747

AV"'4 1

16846

2.57

3~

"I 11 4

I ~2

6

75

2

357

Total

47.606

34 4

1,256,617 5

.955

17.~ 1 7

94

6.208
14 2

Table 19-1974 Individual tax rebate s

as provided for in the 1975 Tax Reduction Act

(Amounts in thousands of dollars)

Internal mimall 11910.1 . district,. State, Ind

-In-' -1.. . (St.. .. .or... . led

by ,

.a'. it. ..

III is indicated in P .mMh .. .. :

.. ...

.. .

. In.,

TOTAL REBATE

CREDITS REFUNDED I

APPLICATION OF REBATE CREDITS

Applied to 1974 Applied to othe r

Been.. Due a.,... . .. . Other r

St. .. hb.n .1 batto.a, . .be.) Number Ancum, ...a ., A . .. I Number A-um

Number Amount ..Mo .,

A-"

if ) m 1

.) is, (6) (7) (A) M j,o~

"mUd 5"' " 'at If --------------- ------ 65,468

.989 8 .209,504 0,775.926

N-In-Ate.h. Region . . . . . . . . . . . . . . . . . . . . . . . . .. 9,605.659 1 .226.627 9,438,71 2

Allen - ------- ~SM, c) polow) . . . . . . ......

. 547,330 69,290 536.005

. Maine) . . . . . . .. . . . . . . . 306.061 36224 298 .732

Boston imu Cn

'

.ft.) 1 .11.11 11~121 1,852.63 2

Brooklyn S=jc~ below 151,567 273.1114 2,089,882

B.fl ------ --

.10 -------

. . . . . . 1.467 .592 ISSZ17 1 .440.602

BHartford .,I,ngl .. 'S---'cJn ~V s `1)"1_) . . . . . . ------- ' _ 1~ .146 16096 131 .268

Connecticut) . . . . . . . . .

. 1,210,251 155.726 1 .179.477

Portsmouth

1,109.901 176498 1,359.1as

~N-H,hamm) . . . .

. 259~346 32251 253.603

PI-d-c . Rhod. UU.) ------ _ 3 2119 3

:'

0 a 296,567

adid-All-tic Region . . . . . . . . . . . . . . . . .

.

.

. . . . . . . fe, 673

:6, o 1~2~14 604 4M.855

Bulumon, __ ----- JM-Iand and D .C.) ---- 1,63a,070 213260 1 .625893

Newark _ . . . . . . . . . . (Nd,j,mdy) __ ---- _ 2.522,617 325:396 2.455.448

Ph phis . . . . . . (See(rebelow" 2352,144 300,935 2.2911 .180

P,t=gh ~IVm n".1*1!~, 1 1, ~1 S1 12 1 .172

. g"

"Ill 1.41 .19

Ftich,ond I IMP, 487.0811 W,I.,ngt.h . . .. . . . . (Delaware) ---------- 186,879 24.005 '81 .382

Southeast "of ' --. . .

. . . . --------- 9.010 .075 1,076.003 IL734.044

Atlanta ------------ G...gm) . . . . . . . . . :_ 1~391 .3()al 168,164 1,350,598

Brrm,,ghain . . . . . . fAmbanuf --- - ---- 924.829 110.564 900.992

C

lb

olumbia . . . . . . . . . . jS-m C.,ohn.) ------ 781.UB 92,770 760,046

Greensboro . . . . . . . . I North Carolina) --- __ 1,581,645 188,014 1,536,945

.'S "on M 518,674 59,655 501,674

Jacksomirli, C - - jF1'o,,ZpP -~ . . . . .: :, : . . . . . . 2,534,570 305,841 2.443.128

N.-Il - ---------- (T-mosse.) . . . . . . . . . 7 11~05.6 1140.6

' :4 1

., S Caner I Rtgio - ---------- __. . : :_ .' :32 . H 7'1 fea all ~129 . 08

Cincinnati _ . . . . . .

. (Sim(d) below) 1 . 68 .822 184 .523 1,434 .170

Cl,,,Iand . . . . . . . . . . (Sea (d) belowl 2D60 .121 217 117 2018,732

Detroit P . . . . . : : : : : : ~M,,Mgim) ----- ------ 2.783 .273 365 :4

.2 2

:729.363

1111ma , Indt,11,1',_ 1~191 . 311 211,437 1 .10 .1al

L-i

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

. as '058 108,262 111.777

all Parkersburg ------ jWamI Vi,g,niI) ------ 479.786 60,064 47, I F ,

.71

d=imagm A . ~ . .. .. ... --- 9,457921 1 .209 .730 9 .250 .044

WhOakome 182 .408

1

4

Chic:?o (b)below) 2.11~ :11 3271,3711' ""2 .IZI. as M

0.1 om .

.7 11 8,117 1 7113 .4 0

Fang . . . North Dkikoftj -------- 1 .3,1~O 224

Milwaukee jW-.hNn) I .:C1 . 07 180291al .114 1~379a .146

OmanL . .. .. (Nebraska) 1 11 111:161

---------- 1,3S2:2'0

S, 7

174 :~14 " 36 61

S,: ------------- 1 .17g%-44 147 .5496 1,155,65 1

S Springfield . . . . . . . . (See to) below) ---:

. .'emerm, Region -_------------ _ . I:_ ' ';.' `~"' 131 g "' 121 :2

.S`U

5 .281 1, 9 12

A

't

-----

bi,q .,ndlm __ (NSw km .ic.) 293 .W 34 :% 281~311

Austin .. .. . .. . . . . . jSeejQbeldw), 1,991 .695 2.3 N

Cheyenne . --------- jVy,,h,t . . __ -------- 114,745 14,592 111. ~90 "2

D 11. - - 1 .49S,146 184 .207 1 .451,24

Dan— !=do)"* ----------- 7%.920 99 294 775,4751

Li

-R ck 111

:41 60 :3,56 1.:3028

N Oi..n.--:-.:: 94

fe

.61 1 is 10 924 89

Oklah ., City 87 .02 708,880

-------

jOkIah,-) ------------ 728,21 8

Kansas) .... . .. . .. . 1, :97 . .674 .779

Western Region . . . . . . . . .. . . ... ... .... . . "1:'

3

... .:~ IDIS1 757 1 .32 3658 49.160

Anchorage Sam. . . . . . .. . . . . . .. (Alaska) --- .. .. . . .. .. 103.742 13600 99.966

:::: _: 11*11 - -------- 227.599 27:267 220,314

""In' 213 Honolulu . . . . .462 21.879 207.144

. 'if 70 031 9 1264.82 3

Los M g.1.

j1,w,a1b,f .w) 3 2. 78.47509 34490463 : 306bo

Phoarb . Intone) . . . . .. . . . . . 628.287 76,955 611 .069

Portland ------- (Ordemn) ------------- 7W.649 97338 760.933

Ron . . . . . . . . . . . . _ lNeweda) 2W,785 25:798 200.822

Salt Lake city F, . . . ... jUlah) 327.557 39574 320 3 .038

'n 11,m) 2 .1 .131 1.1 . 2,11.,883

1 143.279 1,086.567

011'.. .1 InUmmlientel Do. ..lerm"T")

115,550 5

S "13:171 1 .916 83 .Ml

P... . c - ---------------------- 900 .118 11 .819

Olh-- --------_----- ------------------------ 71 .977 7,798 71,532

7 .955.530 2 .933,97S 197.435 357 .203 24 .966 177 .47S 31 .570

1 .189.603 402,252 27,126 59 .1117 4 .272 35 .669 S .Su

67.639 20.985 1,320 2,649 192 264 139

35,175 12.613 851 1,476 N 503 104

234,1" 73,304 5.1115 9,107 663 4.536 830

263,934 97,735 6.426 16,310 1.200 11,3113 1 .625

184,250 47,373 3.071 B.273 411 2.456 556

15,667 sAa7 330 717 44 290 55

151,069 50,696 3,495 6.576 471 4,621 671

169.127 73,370 5D20 13,410 1 .000 10,617 1,350

31 As 91344 676 1 , 155 SO 492 109

W.973 10.925 752 1.312 89 507 1 06

1.197 .127 407.1178 211 .3aS SMSS 3,762 25.911 4.710

2W004 81 .379 5,981 11,051 775 9,987 1,500

315,446 103,841 7.336 15,00 1.201 8.743 1,116

292,729 93603 6.2. 11 .242 776 1,996 586

176.168 49,570 3,327 5.155 339 1 .968 5Z18

111:7137 7.01 4172 11~33 s . 1. 584

23 a 865 626 1 89 559 108

1 .03GAIM 476.554 32.273 67

:3

567 4.615 28 a 66 4,297

162 .075 68,666 4.818 9,758 664 4 :326 BD6

10 .025 42,949 2.7% 5,727 367 2.608 397

89,567 35,999 2,4M 6,176 414 1 .939 295

161,356 79.439 5 .190 13,263 829 3,9" 638

57 .146 31,092 1,966 4 .941 320 1 .509 223

294221 153 .559 10.569 111,8:16 1 .4~35 11 :117 1,61

1 .~7407 .508 64,850 4 .440 8,866 585

2

983 622

.562 329 .818 22 .185 36 .914 2,598 17 .227 3

.

540

179,616 55..' 3AIo 5,977 418 4 .089 680

261 .037 69,212 4 .615 7,495 536 4 .52 879

357386 92~303 6

.

344 10 .602 768 3,5 5 964

208,504 58201 3 6' 6,798 491 2655 577 1 31

105,204 . W .073 2 .4. 4 .357 275 IS

'

'10

. 121

' ."5' 7. :a43' 123113. 2. 762 11=69 2 .1.1 Moll 3 .763

20,719 11,2,16

635 10 1

M 44 283 69

36S4113 123,457 8 :8

. 363 13 . 916 1132 8 89

1,43

6,711 44 .146 2,616 3 .MB 201 911 3137

20 .92.1 13.237 762 1.009 53 477 8,

IMIS7 53,618 3 .3W 5,D94 348 1,460 402

1 5633 24785 1,476 2,U7 116 966 186

69:4316 59,116 3 .787 6,822 455 3 .019 525

143773 51,193 3,06 4,238 2T6 1 . 26 422

11

42.12 2551 196S 245

1

.748 328

.112 al 3

.

4 IN 0 9 .379 M.287 43,432 2 .946 19A02 3 ."o

33ASS 12 .70 8 94 747 130

23e,445 965911 6,8186 1!

.

.45 of 1127 S.W3 1 . 00

14 608 30 662 44 32 61

176:101 6

:3 9559

642

~

. .87 7 1 3

.I ' of 'Z 2 14 3a , s7 2466 3,867 268 .59 36 2 4

11157.804 30,533 1 .932 3,501 224 1,220 196

.40 46,140 3.061 5.578 376 ~.813 374

Metal W390 2,511 4,020 255 491 285

W,224 36,392 2.268 3,254 220

1 .283.332 492.452 33,869 MASS 3.051 ~D 541 1 :'2

13,037 5 .4. 416 519 S3 638 IDS

26,146 14,375 916 I'W5 81 W5 124

24S91 13,131 793 1,366 83 707 112

31,111 1112

642 " 63 'M 13

8

'74,7,7 S5

:

.go 11,511 22,024 1,7D4 12M 2,490

74 .437 28.747 1,970 2S50 20 2 D66 346

93.9511 39,406 2,663 3.928 272 2.60 445

24.927 6.322 603 ~ .IIW 117 82,5 151

38.451 13,787 871 .489 96 9. 54

~0771 139,051 9,851 14 .046 9W 6 .537 1 .56a

138 3 '1767 54 .5115 .630 4,405 9 293 2,4712 S89

826 1 .am Sa 25 W IS

11 07 61 40 46 3 11 2

7.11IS to, "S 508 879 ED 61 16

"I"Mrs, 1:151.1 ,17 843.611 6~177,484 815,528 304 .941 2

6 36

:11 2771,1 10~ :I . 4 :01

163 1

:3 :2 1

Illinois - 7711

S

496,453

3

684

.

to, 402.3W 166,239 014 17884 637 1 7

Iaw 1*11 1.1 41 707.289 6.426,433 684,950 239.463 15,83 38 .842 2,833 24 to) a 7W

, 3.

.670

Ohl .

- 3528.943

4"

.640 3. - 52,902 . "S 7W 124JB53 .425 13 .473 954 11 .616

1 ~559

I

.)) 3,752.5M 182.107 3,671 D64 469,697 143,173 1 .57 1 16 1 1~1 1 3 -

To. . -.

. . . . . . . . . . 3 .490.841 427,296 3.384,277 411 .276 182,899 12 .837 211,50 1,4659 . :270 1, 171244

Number of application, u-skest number of credits because on, credit My ha2ft9 a dust application, i.e ., partially Mfunded and partially appined to 1974 Balance Cut .

",Th. Robust . Credits mt.mdacl include 216,795 refunds amounting to S21 .417,2 9~0 scheduled in the last weak of Jun, 1975 and issued in Me time weak of July 1975. Dah.

.MM_ Cu -lefund National Computer Center and ,==., is, schiscaluesell fair isdamance, by Regional D"~n, Consent .

u, innoo A I .-P So remplubonottupe r'sac .. he

pill Far I The mmobsom . 'a, the ' and amoums in cV,mn"S ~ and P` to,"InVOlY, - in al International aeratilems and the Philadelphia District are based a, an allocation of the total to, those two

ces. me Office of International Operations am pnoodepead 0 by the Philadelphia Sii Center.

14 3

Table 20 .-Tax withheld from payments to foreign persons of treaty and nontreaty countries-calendar year 1973

(Thousand dollars)

T

.0h.ed

by ..all.

withholding

.9trefir

Ties from

o r

withholding

.O.M.

Total

US

withheld

N.".1 of

ime . .....

document .

filed by

withholding

age ..

Treaty Countries :

Aisle Its -------------- - --------------- --------_---------------

A ust - -------------------------------------- --------------_-----

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

0/s Territorms ------------------- - -----------------------------

Camed - ---------_-------- - . . . .. . ---_----------------------

Denmark -------- ------------- ------- ------- __ ----- . . .. . .

Finland! ------- --------------- -------- ------------ __ -------

France -.-.---------------------- ---------- - . ..... . .. . . . . .

Federal Republic of Germany _ ._ _

G mace -------------------------- ------------

Ireland ------------- ------------_------ ----------------------

=. -------- I -------- I ---------------------------------- ----------------

Lu-nifflackung _--------------

See heriands . -------------

Shithernmos ni ------------ ---------------------

New Zealand ------------- - --------------------------------------

=n---

Semath,

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

TnnkUd1 & Tab. -------------------------

Republic

of Sougo -----

Und :d in All A ----------

Formar L17day . i~siriu;Ism ---- : :

Nontraid'y countries ------------------- - --------------------------

TOTAL ------------------------------------------- ----------

3 .596 am 922 3~7115

2 .473 311 - 31 1 4530

32 .885 SAX 541 1,565 9.135

320,351 27

26 4 4 94

.393 2.9;,

30,302

203,1152

2 .802 195 1 IN 1,25

W3 33 - 33 373

107 .513 91890 55 9.748 13 .422

56.577 5.213 - 5.213 55S49

1,623 322 - 322 2689

4JD38 494 2 49$ 3,710

Waste 2

,

114 - 2,114 10.234

61,754 fe's5a

5 58 3

112~

16076 3,796 3i$ 4.11 .

234 :922 27 212 12.994 121 .320 W

167 .765 3

Sol 123 1 2

:661 2 3 .663 Z

3

2A26 332 332 3.3059

164

1

4 '4

1 1

12 .257 746 7- 746

3

494 .7 7 43,679 43.567 07.246 27.3.4 5

22 36 262

1-9 21844 - 204 345

417a1 1 s36.547 334 38 .881 1o:094

.002

5 1

443,813 69.48553 619 202.029 :730

2.408,01 227.789 48,036 275 .025 356

I At printing, only total ambunt of Us interested is avallski breakdown between tak withheld by domestic withholding agents and tali from foreign goinommentie at

withholding &games is estimated from F&II espenince .

Table 21 .-Internal revenue refunds, including interest, fiscal years 1974 and 1975 (excluding rebates)

(For refunds by region and district, see tables 5 and 6)

Nihism,

Anni ml.mUrl amount of

(PIb.h,.f aid intan.. .. ~wf .a$ Included

thousand dollars) Ihb ... M drulf,m )

1974 1976 1974 1975 1974 1975

Total hitunds of internal nawinue 1 2 -------------------_------ - 65.788 .713 67,834 .472 28,192,634 32208 .671 220,921 2 034

corporation mic'me, hosell - -------------_--------------- ------------ 310,836 359.238 3~282 .094 5.290,433 157 .304 164 Safe

imbiddual income and employment tun, total I -------- ---------- . .. . 65.376,148 67.356.316

24

569 .1 91 26,532,559 55,267 59 .021

E.-Sains propsymuni . 1.

2 Fily - _------------------------ 63253 .803 64 .953,020 23 :423,091 25.444,032 27 .047 28.963

OM .r incohn, Us and

.7a,

Imuth

i

Coreldbutione Ad takned 3 - ---------------- ------- ---------------- 1 .970.456 2,212,418 1 .119,7 0 1 .053,25' 27,634 30220

Amillostal Isfilemen, ------ -------------- -------------------------- 434 726 5~2 332 15 is

I.M. mant in- his - ------ -------------- -------------------- 151 .453 220:152 25A79 U .939 571 73

'

Each. U~phsy

22747 26366 08.769 79~354 6, 353 7 .154

Gin ties 3196 7.DM

4 5

'age 437 751

Eit .m. Issual total --------------------------------------------- 67768 55,519 .. :'525, 300,820 1.560 3,322

Alicante ISee, Is - ---------------- 12.41 14,090 11 112.534 11 1

Taturcc

hAinufacturent and retailers ucum Uses

- - M, - --------- ------

. ideal

.0 323 3:2,77 3,485 ?

3,601 3.951 1295315 157.4 9 447 1 .716

Gasoline eased an farIII. ... ... . 1 05 1. 09: 96 28,07

Guril ;W, nolhighermy -------------- :: :_- : ----------_- . . . . . . . . 1. 1 87, -a SW

Other- ------------- ---------------------------------------- 079 26 - 2 . :303 ',12 5

"

2 .1 27 447

All colue, act. US.I ----------- ------ ------------------------- al .212 37.135 25.630 27.313 099 ~:ey?e

2F .uCX innc9lud

U

FaderFal nOld-Age Sit Suhmi Federal Disable.

SN

75! CM T ce and Federal Hospital Insurance Trust Funds amounting to $535.208.000 in 1974

to Hl*,h the

had, of

n', 16 undeek,shisom way blet .

..p.magh, $123,178,ODO In 1974 $14 .764,000 in 1975,

checks totaling S20,8$6, in 1974 and 89 401 undidintrabl. Imack.totaling $25 .509,000m 1975 .

:nm, :uud otherwis e

licked .

d CA Credit..

I d" rawbaCkle and SUMP redirmpti .th.

7:

I

.10ramemn lelfway purposes .. ne e

I.S . than Si

I-cose and stamps), -11.1 litack . and off ., u- I.

refunds.

I

j
144

Table 22-Obligations incurred by the Internal Revenue Service by appropriation and activity

(in thousands of dollars)

APcesoli.fica, by AMI.Ity

Total .ad 'tav was . appru .pribion s

.14-bi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obligations against appropriation Wads . . . _ . . . .. . .

S-1.r`a M ..p.rTotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tota l

1974 1275

Par. n,WI

C-p. ... no .

and 0. .. In .

1974 197s 1974

1 .312.895 1.589,125 1 .069,276 1 .215 .~O 243,619 373,585

1 .303,528 1,584,711 1,061,397 1,211.923 242,131 372,788

36,452 41,fiW 31 .036 35,533 5,416 6.074

Executive direction . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . 15,688 132 1 15,478 2 .477 2,683

Intonnuil audit and securIty . . . . . . .. . . . .. . . . . ..

. 20 .764 2S -42: 6 R 20,055 2.939 3391

Accounts collection and Wsloy., ..naT .al . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --------- ----- 603,9114 732..2 455,052 519,328 148 .932 213 .11 4

Data processing operations . . . . . . . . . . --------------- . . . . . . . . _ 315.088 38SIN 251,967 284,462 63 .121 100 .642

St-II.Sucal reporting . ... .. . .. . . . .. . .. . . . . . . . . . .. . . . .. . .. . . . . . . . . . . . 1 0,807 12.102 9,216 9,801 1.585 2,301

C.1 I- - ----------- . . . . . . . . . . . . . ------------------------- 193,4~ 226 .178 161385 185,128 32.092 41,050

Taste" sann. . .. . .. . ------- . . . . . .. . . . . .. . . . . .. . . . . .. . U.618 109.058 32,04 39.937 52.134 0,121

CT=14 . ce :

. . . . . . . .. .. .. . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 663,092 810,662 575,309 657.062 87,783 153.600

Audit of I. rawr.. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 495 .152 578,191 431,012 467.956 64,140 110. 35

E an, - - ----------------------------------------------- - 23 .OD4 - 18.974 -

4

.030

7 'p;=d"."

Paci;~; ~

as ad

- ------ ----------- ---------------- 85,9D3 10toill 69

.367 78,066 16.526 22.995

E:. ;ap,.o1,qdn ,i,,IWrW

19

T . once . .303 - 16,059 - 3.2.

am . . . . . . . . . . . .. . .. . . . .. . . ----------- 3 812 36 .892 30,315 31,850 2,497 5.0.2

T nical r Ings and set

,

U'

cas .. . ... . . . ... 18870 17.181 16)978 14292 1,992 2,589

L.g.,,Wnaca . . . .

. . .. . ... 30,355 35.030 27,737 29,865 2,618 5,165

Reimbursable obligations Total .. . . . . . . . . . . . . . . . . . . . . . .. .. . . .. . . . . . . .. 9.367 4,414 7 .879 3.617 1 .488

Not. : Transfer to GSA for amf of sibew totaling $8,369,000 in fiscal par 1974 is not included

Table 23-Staff-years authorized and realized'

Appropriation

Sonora. . . - _ - ~ ----- -------------------------------------

Accounts . Collection and teopsys, sernis, . . . . _ _ . . . . . . . . . . . . . .

r-pliano, .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

T.Wl . . . . . . . . . . . . . . .. . . . .

I-WAse 1975 -1 197.

I Does not include staff Years don,oted to allailounitable Projects .

A .Ilu,rlit.cl Realized

1974 1975 1274 1275

1,ew S23 1,741 1,867

3934.527 42.61 39,597 42.517

.71 7 36.05~0 34.424 37,955

Othe r

P.-neg.

Realize d

1974 197 5

1915

797

105 .3 1021

IDg2 998

99.2 99S

75IS97 82406 75,762 82,3W 991

- , 6.5119 - 6.577 -

998

Table 24-Costs incurred by the Internal Revenue Service

(in thousands of dollars) .

Internal -inu, office cli,tact . 0, regio n

A . National Office and regional WWN (including restrict direct,,', offices ants as,nic,

'enter"Total internal R ... .us S-I. . I ------------------------------------------------

National Office ------- -- ------- -------- ---------------------- ---------------------

N .nn-AtWrac ---- . . .. . . . . -------------- ------ ------------- ------- ----------------

Mid-A antic ------ -- ------- - ----------------- --------------------------------------

S.u:W at ------- -------- - -----------------------------------------------------

Can .1 - --------- ------------------ - -----------------------------------------------

M.d-.t --------------------------- -- ----- ------------------- ---------------------

South,eest -------------------------------------------- ------ ------------------------

Wevenn - ----- - ----------- ------- ------------------------- -------- .. ... ..

Regional Counsel ---------------------- --------------- -------------------------

R.

.1 traWbct ... .. .. ... .. . - ------------ -------------------------------------------

079 of International Operations ---

National =ter C-te - ----------

IRS Data ------------ ---------------- ---------------- -------- ------

Sir , R.,i. .. I co-W .I.,ni fit. .. a .clud .ng district di-aae. offices ..d .-ic.

nl-f

NOnh,Attant,c _.. ------------ ----------- - ----------------------------------

Mid-Ati.ntic ------- - --- ----- ---------------- ----------------- - ---------------------

Southeast -------- - -------------------------------- - ------------- -----------------

Central -------------------------------- ------- ------ ----------------------- ------

Mid"st --------- - . . ---- - -------- ------ ------------ --- ... ----

So,th,eesl -- -------------------- -------------- ------------ ----------------------

W.- - ----------- - ----- --------- ---------------------- -----------------------

C . Regional costs ralistntaute d

North-Allantic ----------------- _ ------- - -------------------------------------------

MW-AlWrtic -------- -------- ---------------- - ------------------- -------------

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

Central --- ----------------- ------------------- --------------------------------

MW1e3t --- - ------ - -------------------------------------------------- -------------

South" I --- --------- -- --------------- - ----- - ----------------------------------

Western ------------------------ - --- -------- ------ ------ ---------------

: ---------

D . District director' . offices ad son,ice cents,, :

NOM AIWIUC :

Allaray ----------- - --------------- ----------------------------------

A2 -- ------------------------- -- - - - - --------- --------

Man --------------- ------------- -----------

Orooklyn ------- ----------------- --------- --------

Gullet- ----------- ----------------

During- -------------------------

Ifamom - .- --------- ------

M.rh .. .a ------------------------------ -------- ------------

p rt-ti, ---------------- ------------------------------- . .. . . .

. .. .

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

P,"d nce ------ - ----------------- ---------------- ------- - --- ---------

N-a-Atiantic, Regional Training CtI- ------------ ---------------------------------------

NOMIAll.run, Rae,.-Clrun,li~ad Tr- ---------------- ---------- -- ----

Ando- Ser ce afar ----------------------------------::- .- . -

Brutish- Sna. r-Wr -------------- ---------- -------- - ------- ------- . . . . . . . .

el land. :

Sell, - - ----------------- ------------- ------- ------------ ---------

Zeeark ---------------------------------------------------------------------------- Philude'll ; ;;; ------- ------------- --------- ------ - -----------------

P111,r,no1

Richra . -------

W in n

Mid Win ike 'TA, Cic -~-rwrw~i Ci ;iii;~il ------ ----------- * ---------------------------

M,d-AIWntic=I-C. Ini ----------------------------------------------- ---------------- * -----------------------

PhB.d.lphb Co .., ---- . .. . .. ...... .. -------------------- ------------------

Penitential

Total Cornball.

-Wn

(21

1 .5n .126 1.215 .541

297 .131 95.620

235A92 21D.438

162 .654 145.338

,6s .296 140,438

136,M 119,085

157,034 138233

141,105 122 .618

215,954 187,254

18 .966 18 .264

18 .553 16 .614

11338 8.61 2

6,59, 51160

20.479 17,966

12.556 11 .213

9,417 7,793

9 .236 7:433

a,075 7044

9,829 0,029

7,771 a

15 .113 121,8,6

2,759 1.036

2,337 891

3,133 1,201

2 .437 111 .

2309 960

2 .529 696

2,281 3

6 .667 6,189

4 .012 3,386

24786 22724

27 :067 25:270

17.085 15,115

2 :

12 AU IS '76' 1;-,

64,166 51,246

3 .144 2,539

4.724 4.25 7

154 106

153-_-- -----

28 ~428 24,403

34.244 29,97 9

20,914 ig.090

31,653 29,638

27.7a7 25773

;3.905

11:801 2,502

3,399 3,155

327 253

92 .. ~ . . . . . . . . . . . . .

37,589 32.169

145

Invest Equip-. am.,

(3) (4) (6 )

44.708 27.041 301 .837

2.213 6,789 2D2.609

5.209 2 .749 17 .095

4.095 2.172 11.049

6,110 3.205 15,542

4,693 2,613 10,133

5.262 2,081 10 .638

6.085 2,H2 9.841

7,941 2 .535 17 .934

213-. . . . . . . . . .

1,403 56 :8710

1,243 465 BOB

,9 41 3341

174 54, 1,799

19, 3S2 1.110,

226 167 1.231

31 361 1. 1 32

165 213 652

423 450 927

317 248 071

474 442 1,512

518 27

:265 ..

. a,

:805 . . . .. .......-ifi 1 27

52

.

1 . 7

269 .- . ....... ... go

'

: 717 24 92

2 07a . . . - . ... ..... .. 200

203 7 417

168 11 37

500 A I. 20 7

350 1 '057

Z 27a

1

.2 7

96 32 198

327 136 549

707 442 1.172

111 52 143

92

"1

21 1

2 2 45

1 50 ---

102 223

. . ... . 3

3 .700

183 221 4,88D

336 507 682

us 254 12U

'21 314 1.1

32D 1 93 610

47 '40 M

87 20 135

1 27 46

92- . . . . . . . . . . . . . . . . . . . .. . .

87 .1 4JR92

I
14 6

Table 24 .-Costs incurred by the Internal Revenue Service-Continued

(in thousands of dollars )

l'ohmal nim"" offic'. ditithri'l. or region

Pan- net

Total Cintriptim . Thl EqWpma.1 Odm,

-on

(1) (3) (4) (5)

Soollm at:

Atlanta __ . . . . . . -------- . . . . . . . ... . . . ... __ -------------------- -----------

8.z.i ------------------------------------------------------------------------

Gna.b.1; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. ... ........... ... .. . .. . . . . . . . . . . .

Ackson . .

. . . .

.

J..kah,nl . .. : : --------- -----------------------------------------------

Nal. . . . . ' : . . . . . . _:- :__ : : : : . . .

Southeast Regional Training On, ------------------ -------- --------------------

So,thnnial Regio,-Cnthalized! Tr. -------------------------------- ---_--------

Atlanta Se-ce Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ----------_ ----_------

M. .phi. S.-ort can an. . . . . . . -------------------------------- ------

Cant, 1:

Qn-hati . .. . . . . . . . . . . -----------------------------------------------------

Chair Nindl - ---------- -------------------------------- -------- ------ -

Delta. . . . . . . . . . ----------------------- . . . .. . . . ... . . . ... .. . . .. . . . . . . . . . . . . . . . . . . .

Indianapolis - . . . . . . . . . _ . . . . . . . . . . . _ ----- _ . . . . . . . . . . . . -------------- ----------

Lo .ithAll . ._ . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. .. .. .. ...... ---------

C mI 11 ----------------------------------------------------------

Central Training _ . . . -------------------_-----_-- :

C .-innali Center . . . . . . . . . . . . . . . . . . . --------------------------------------

17,765 15,695 805 403 853

li 7,909 352 190 .91

140,995 1, 254 Is 472

.005 4409 598 271 727

6 .063 5 U3 267 102 34

3 588 2 756 2.020

110 :704

160.7 9 1

.309

.036 a

454 262 679

07

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

28,416 6=0 a? "6 4 .589

28,296 23,971 71 246 4.005

15,345 13 .081

22,529 20 .604

29,971 Ram

15 .039 13,380

8,778 7.809

5316 4,61 5

685 539 ,

02

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

213,249 23 .426

390 276 71 1

524 356 S

553 916 1.368

496 31W 857

330 95 484

217 53 331

6 74 65

10, ------------- 1

83 iii 4 .527

Midemal :

Aberdeen .. . ... ... ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. ........ ... . 2,581 2,25,1 .147 4 130

38,094 D4 513 257 1,941

--------------- 357

.61

322 242 500

Fargo -------------------------------------------------------------- 8'6S 2

------------------------------------------------------------------------------ 2,563 2,199

112 76 176

Mileaukee 12,631 11 .481 34a 1 63 639

Ond"a ------ 6,928 5,111 217 2 3M

K IS 1 . ......... . . .. . . . . . . ---------------_------ - ----------- 19 .720 17,658 630 411 1.021

P, -., .. .... .... ---------------------------------------- 13,540 12.077 406 402

11 .97 . OA37 387 00 671655

rprizIll",- -------------------------------------------------------------- ------------ ------------- I ------------------------------ . .

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

Nbd

Will— 84

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

-------

K.h., City 31,44 %:-. Center . . . . . . . . . . . . tir 95 57 "

S.-thiml;

A . .bn . . ... ... ... ... . . . . . . . . . .

Chelanne .. . ... ---------- . . . . . . . . . . . . ----------------------------------------

Da lag -----_---------_-----_------ _' ._ ------- ------- ---_-------------

D. - . . . . ----------------- - . . . . . . . . . . . ------------- - ----- ------- ---- -

Liniellock .. . . . . . . . - ----- - . . . . . . . . . --------- ------ - ------- . . ... .. .

Nee, Ollinine ..... ----------- ------------- --------------------_--- .. . . . . ..

Oklahorna City __... .... .. . . ----------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . __

Worilte ----- . . .. . . . . . . . . . . . . ---------- --------------------------- - ------------_-

So'"'Titt R*gr thal-ol Training . . . . . . . . .

Atnilln Sithri. . = ...... .. . .. . . . . . . . . . . .

A,art . Hag . T,. Center .. . . . . . . . . . . . . . . . . . . . . . . - ----------------- ---------

winihin. :

Ancho ag e

Bo' Helen . a ------

.nolu'

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

Los Ang ism _ .. . . . . .. ... . .. ------------------_----------

Pincent . . . . ---------- __. . ... .. . .. . .. ___ . . . . . . . . . . . . . . . . . .

R.M. a . . . . . . . . . . . . .. . . . . .. .. . . .. . .. . .. . . . . . . . . . . . . . . . . . . . . .

no . . . . . . . . . . . . . . . . . . . . . .. .. . . . . --------- . . . . . . . . . . . . . . : : : --: : : :

San Lee

. City --------- -----

: . . . . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

San F.n,!.o. . . . . . . . . . . . . . . . ... .. . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . .

Sl. . . . . . . . . . . . . . . . . . . . . . . .. . . .. .. . .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

"I " . 0

Tim ning

..Z. R%.!=&nlild.tm dC" - ----- ---

Md-n Sam. Can- . . ~ . . . .. . . . . .. . ... . .: :: . . . . . . .

no Sam .Canto. . . . . . . . . . . .. .. .. .- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.9-53 1-0 172

74

267

24 .5-,4 21= 900 445 .46 5

2

1 .698 106 60 "1

23 :3'&6 2D,798 065 323 1.319

9,680 8,491 388 142 65

5 .910 5,317 mo M me

121 V 10,753 339 496 540

10,779 9,553 4 1 00 535

71860 6,963 314 141 436

5'

46

30.258 26.637 332 3 ,201

133.. .. ------- 133 --------------------------------

3,100 2.450 256 126 268

3,135 2992 205 6, .17

3 189 2,760

3:968 3.527 149'

27

30

50,797 45.79 1,498 480 3.024 20 .

8.009 7.051 2 1 89 6,

1 7 ' 613 326 'g 2 1422 .9011

,1

3,N7 3

022 5 7 3611

:612 '3314 3!1 236 3

32,900 29' 669 1 .020 280 2.030

13,207 11 .iS3 527 310 697

at 513 9 201 96

---------- iw'W4

230 -------------

232 aill

30.D46 25,769 151 265 3,861

Table 25.-Personnel summar y

L. ..U.. . . ly,.

-11191 ftsitilim, Rrmfi,ed

1175

Senn- 1.1.1 --------------- ----- - ---------

Pe,,am,t ----------------- ------------------------------------------ ------

T ..,.,a, --------------------------------- ---- ---- -- _- ---------

OnIhm I ------------ ----------- --------_------------------- ------

ImId San.m. Total I ------- ------ -------- -----------

Did -------- --------- Coi=

. '

t

' 0 - bill

. .. . . . .

. * - --------- * -------------- ------------------------

R-n- Oth.-

Oth-- ------------

Taxpayer Samice, total --------------------------- .... . ... .. . . . .. . .. . ..

Ta.pa,m, Ser . Specs . ------------------- ----- . .. . . . . . . . . . . . . . . . . . --- _ ---- -----

T .

.P

.y.r Se, Re , - ------- ------ -------------------------------------------------

Other - ------ -----_----------------- - --------- -------------------- -

Auft tol --------------------- -------------------- ---------------- -------

Re-. .. Aglihnnt . -------------------- - -------------- ------------

01 . A.d,l A Tarr Tech --------------- ----------------------

Other ------------------------------------------------- ------ ------

Employ" Plan. Cell, toned ----------------------------------- . . . ... . . . . . . . . . . .

Ag"n' -------- ----- --------- ------------------------_--- -------------

Tin, LT- AuditSo "I "' ------------------------ --------------- --- ---- ------------- . . . . . . . . . . . . . . . . ------------ ------------------- -----------------------

Olne - ------ --------------------------- ----------------------------_ . . . . . . .

Intaillgranoe low -------------------- -----------------------------------

Special Ag~nts ---- ----- - ---------------- -------------------- _ -----------------

Olhe- ------------------ - -----------------------------

F"Inpit org ., tablet ------- ------ ---------------

R.. .. Agl -------------------- ----------- --------------- --------------

T . U . Spincrahirbi ---------------- . . . . . . . .. ... . .. .. . . .. . .. . ... . . . . _ . . . . . . . . . .

Tarr AWflom ------- ----------- ------------------------------- . . . . . . . . . . . . .

Othe- ----------------------------------- ------------------------------------------

Appellate, total . ----------------------------------------- ---------------- .. .... ..

Apidellith, C nfilmlit - - ~ ------- ---_--------------- _ ---- --- _ ----- . . . . .. . . . . . . .

A,thtom ------------_----- - ----- -----------------------------

Other ------------------------ ------------ ---- -----------------

Admanarthill total ------- ---------------------------------- ----------------

id.M helpection

E,*.,, .c Sool-Imn ------: ---------

pm" .. . Tom, . ~ -------------- ------ -------------------- . . ... ... ..

1974

76.921

6797

10:94 4

3.958

72.469

25.111 7

WA.

N .A,

'4

:17'

14

,

44

4,174

6.657

52 .616

70,923

11,69 3

4 .579

71t037

25,732

11 :74~1 2

4S " .72 7

2 .91 7

2.07

Et" S

2514 .386

.265

4 .666

7 .45 5

N A . 761

Nk 525

IN A

N k ----------- * ------d6

N A 206

3 .472 3 .757

2~493 2,638

979 l"19

N .A . 658

NA . 412

N .A . . . . . . . . . . . . . . . -

N .A .

N A . 163

112 a

615

123

55 0

2,935 lig

a, :

2 .289

1128a

615

125

548

3 .2 a

920

Na 70 .A .

Note : Fli,in,to,merhents am ,cl,dW h, abohm fig,me

~nl do, ahrl 4- nnin-yews to, ,b, nh,im ,

n'~~`*` O""'t, 11 Inle-nonal Openflona, Nibonll 1,-,fin; Cent ., and IRS Oahe Center

Incl.,lim -ement

.

4,ployther, In ned localy 3 n 1974

.

4 n 975)

NReflect, a,-y...s ,,I,zat,,n and personnel- hoil to, Naho,mt.Oh- and hold : not hl.h on Table 8

A . Not appicabl,

Nihinten, Elid"yeam At

Clime of Yea r

1974

70 .700

69,635

%M5

4~305

73,928

22,450

Wk

27.890

15.400

4,526

7 .97 2

N.A .

N.K

N .A.

3.70,

2.577

1 .124

NA

1 .291

618

119

55 "

3,154

"I N e

467

147

197 5

82,266

71 .734

10,632

4 .505

77 .681

23 .694

11

.1 ~ '.

4 .89 1

3,00 1

2 .032

969

27,411

14 .2M

4 .772

8 .416

970

692

34

M6

3 .795

2,626

1 .169

417

3

al;

160

122

w

3.21,

Me

901
148

Table 26 .-Ouantity and Cost Statistics for Printing I

Class .0 Vi

1 . Tax Packagais 11975) 1

Pasokaga I (Forch 1040, Instruct,ons, Sclueftles, ASB-40 pages) ------

Package 2 (For, 1040 . Sched,les MS. D, E . R . & Inst-tions-52 begins) -

P, Package 3 (Form INO . SChW,ies A . 8, C. 0 . E&R, SE & Imuluctlom-60 Pen)

=Zorm 1040. Schedules MO. C . 0 . E&R, F, SE. F. me 3468 . 4136, 797 . &

P ck

:g ns--80

Pack a g : 110450A I FormPages',, 1, A -i -------------- natl-1115-ii-- --- ------ * ------------- * ---- P7.p.) . . .. . .

06 (Form 1065 : Schocul, K-1, Form

4

a u :a pa"es)

Package ,h"ucl"20 (Fo rm 1120, S.ruiudul . D . For., 1120-W, 346a, 4797. 4874 . 7004

-&-el) paigi,a) . . . . . . . . . . . . . . . . . . . . . . . . . ------------------------

Pack, Instructions. S&edules AAS~12 capeal

Fiscus, I IFO I(NI . I heoulas ME, D~ E, R . . . instructio n --- ---- * ------- ;in 0 "-Wpsi~aal .. . .

P. Fo No. Sch-les A. S . C. 0. E&R. SE am Instrucuork- 2 pag"t

Package 4 (Form 1!!70, Sch-issa "S. C. D. E&R . F, SE, Forms 3460.~4136, .4791.

no 115-Cu.

"For, I PNs8A $a) nd 'I lisl ~ . . . . . . .

Package IF _Pk, Pitck age 'OrmA 106~, Sch-le KuC1 I OF"m 167471 '*d'

Package 1120 (Forso. 1120, Schiclue 0. Forms 112~M 3468, 4797. 1874~ IN,:)n d

pages) . . . . . . . . . . . . . . . . ---------- -- ----- --

3. Talk Package, (1973)~O.

C' :g I

IF Instruction,, School A--32 pages)

P ::ii------ i. . . . . . . :c , : 2 F.=M INO . SChantults

a

P'c' :g '

IF rm 1040, Schedule, A. C D, Ei AE .

.tZ ; ..`iucboma-r52 p

Pack : I Form 1040 . Sch.bul ., 4. C, D, EIR . F . SE, Form 4136 A instructions11 P . .. .

Package 1065 (Form 1065, Sch-le ~1, For, 479~ V'run ]~iorw"a a

Pao

kegs 1

120 1 For, 1120 . Schedule D, Forms 112~iiy . M68, 4797~ 4874 . 7004 &

instruct,""-`0 Pages) ------- --- ----------- - ----- --- --- ---- - -

4. E. ..y-t T" P-stagis

Pub 393 (1 us) .

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

Pull: 1-

(1974) - . ~ . . . . . . . . . . . . . . . . .

Put, 393 (1973) . . . . . . . . . . . . . . . . . . . . .

Quantity

Packages TI, Other P`m"Q FY-74 FY-75

Co.,

MDOD dollar. )

FY43 FY- F145

23 .445 .. . . . . .. . . . ----------------- -------------------------

10.490.. . .. . .. ----------------------- --------- -------

B .M0 ------------------------------------------- -----------

2

. 25 --------------- ------------- ----------------

38 .673

2,400 . . . . ..

2.360 . . . . . .. . . . . . . . . . . . . .. . . . . . . . --------------

1 .281

751

695

1 35 9

4431

37,639 --- ----------------- 325 2.205

10 :170 ::

225

752

a 30D 225 80"

2,725 . . . . ------------- ----------- . . . . . . . . 36

22.400 ------ 175 67

ZO ------ 0 24 0

2,200 .. . .. . .. . .. . .. . . ------------ - - - - --- .

34.925~. . .. . .. . .. .

. 25 I.BN

11,425---- 25 7"

7830 .. 25 .2

2 2

2N

--- . . . . . . 1 10 644

4.0- . .. . . . . . . . .. . . . - . .. . .. . . 0 208

2,000-- . . . . . . . . . . . . . . . - ---- 0 20,

24 2

5640- . . . . . . . . . . . . : . . 2 ------ -----i6 700

"'02 6 :, : . . . . . . . . . . . . . 401 . . . . . . . . . . ....

Total Coal at Tak RM,m 6 limumballon. for Marra sibillings to In.. . .. .... . ------- - . .. . . .. . 212

OttwTUR~m~ln-.UCU~Publ~~ amme,andPany"Its-- 133 -

Maunhortallska Fornes anal Pamphlet, . . . ----------------- 611.921 631 .908 ,

7 :Vpdr'=""so ----------------------------- -- 295 :981) 373 .450 . . . . . . . . .

8 : --------- -------------- - - 4 660 . . . . . . . . . . . . . . . . . . . . . .

Grand Total .. ... ... ----------------------- ----------------------- ------ -

5M3 11 .189

15348 21,142

6:555 8,207

2 .072 2.775

204

. . . . . . . . .

. . . . .

3,254.425 3 .639 .812 - ------ - . . - X122 43,313

Index

I Due to InkI Olu,, of printing requirements. solicitations for the major tu packages are issued in each year in the Spring, E,lbencilue, may. therefore. oyerlap nyo, hiucat a

ly-MU1110hat costs ill be incurred to, the 1975 is . ba,kaors 7,3FY-76 Ill

FY-73 Costs may be only that amount ekpeMW during Y- y tor tak year 73 packages .

Economic Stab,l.zal,on Program as no longer , offset in F
I

150

A

Acts :

Intergovernmental Personnel Act

State& Local Fiscal Assistance Act1972, 6 3

Actuarial matters, 41

Advisory committee, 76

Alcohol and tobacco tax :

Statistics on, 12-14

Appeals

Appellate division, 30

Processing, 31

Statistics on,52

Assessments, additional, 22-26

Assistance :

Foreign tax, 46

Overseas, 44

Taxpayers,6

B

Bulletin, Internal Revenue,36

Charts

Organization, 48, 78-79

Chief Counsel, Office of, 48-58

Cases involving criminal prosecution, 55

Chart of new organization, 48

Disposals of cases by, 52, 55

General litigation, 50, 53

Technical and administrative, 57, 58

Collections :

Alcohol taxes, 13-14

Corporation taxes, 13-15

Disability and old-age insurance, 13-15

Employment taxes, 13-1

5

Estate and gift taxes, 13-15

Excise taxes, 13-15

Individual-income taxes, 13-15

Tobacco taxes, 13-15

Unemployment insurance, 13-15

Withholding taxes, 14-15

Commissioner's Advisory Group, 76

Commissioners of Internal Revenue,

80-81

Component authority activity, 45

Computer audh programs, 27

Conference :

Appellate, 30

Procedures,31

Corporation Income taxes :

Additional assessments proposed, 25

Collections, 14-1

5

Refunds, 12-15

Returns :

Examined, 23

Filed . 1 3

Team audits, 26

Courts, statistics on :

Circuit courts of appeals, 52

Court of Claims, 49, 51-52

Supreme Court of the United States, 50

Tax Court of the United States, 49-50 U . S.

District Court, 49

Criminal prosecution :

Analysis of cases, 32

Cases . disposal of, 33

Results of, 55-56 ID

Delinquent accounts :

Disposals, 28

Statistics on,29

Disability Insurance taxes :

Collection, 14-15

Refunds, 12-15

DiscrImInant function, 22

E

Employee Plans and

Exempt Organizations, 40-41

Employment taxes :

Collections, 14-15

Refunds of, 12-15

Returns:

Examined . 20-23

Filed, 1 3

Enforcement activities :

Delinquent accounts, 28

Delinquent returns, 29

Examination programs, 22-24

Mathematical verification, 20

Tax fraud investigations,32

Workflow in the Service and the Courts, 30

Estate tax :

Collections, 14-15

Refunds of, 12-15

Returns :

Examined, 23

Filed, 13

Examinatlion program:

Classification and selection of returns, 22

Returns examined, number of,23

Tax recommended, additional, 25

Excise taxes :

Additional assessments, 25

Returns filed,13

F

Federal-State cooperation, 62-64

Agreements, 62-64

Audit coverage, 64

Computer-information exchange, 63

Training,63

Foreign investors, 45

Foreign tax assistance program, 44

Foreign tax officials assistance to, 46

Forms and form letters,8

Fraud Investigations,32

G

Gift taxes:

Collections, 14

Refunds of, 15

Returns filed, 13

Examined,25

I

Income tax(es)

Additional, from enforcement, 29

All returns,

13

Corporation, 13-15

Recommended additional tax penalties, 25

Individual Income taxes :

Collections, 14

Mathematical verification of, 20

Refunds of, 12

Returns,13

Informing and assisting taxpayers, 6-9

Inspection activities:

Internal audit, 68

Internal security, 68-69

Investigation, 70-71

Statistics on,71

Intelligence Division :

Statistics on, 29-32

Tax-fraud investigations, 32

151

Inter-American Center of Tax

Administrators, 46

Intennational tax training, 46

interpretative activities, 49

i

Joint Commfte on internal

Revenue Taxation,27

L

Legal activities, 48-58 IM

Magnetic tape, 20

Management activities,7

2

Map of Internal revenue regions

and districts,79

Mathematical verification:

Additional tax from . 20

Statistics on, 20

0

Officers, principal, Internal Revenue

Service, 82-86

Personnel :

Equal employment program, 74

Handicapped, use of, 74

Investigations, 70-71

Labor-management activities, 74

Presidential Election Campaign Fund, 19

Programs :

Foreign tax assistance, 44

Overseas taxpayer compliance, 45

Rebate,18

Strike forces, 33

Taxpayer assistance, 6-9

Prosecution,32

Publication Information activities,8 i
152

R

Railroad retirement taxes, 13-15

Rebate program, l e

Refunds:

Excessive prepayments, 12

Statistics on, 12

Regulations:

Selected regulations published, 37

Requests :

Technical Advice, 36

Revenue Rulings, analysis of, 36-37

Returns filed:

Classification and selection of, 22

Examination of, 22

Number examined, 23

Projection, 64

Statistics on, 12-13

Verification, 20

S;

Seminar, Inter-American, 46

Service to taxpayers, 6-9

Statistics, highlights, 64

Statistics of Income releases, 37

Supreme Court opinions :

Civil cases, 5 0

T

Tax Administration System, 60

Tax Court activities, 49-50, 52

Tax forms, 7

Taxes, additional, 20-26

From mathematical verification, 20

From examinations, 2 4

Taxpayer assistance program, 6-9

Tax rulings, 36-38

Requests for, 36

Statistics on, 36-37

Tobacco tax(es) :

Collections, 13-14

Training :

Executive, 72-73

Other, 75

U

Unemployment Insurance taxes :

Collections, 1 4

Refunds of, 15

Returns filed, 1 3

V

Verification, mathematical, results of, 2 0

w

Workflow In the Service and the Courts, 30