i

I
Introduction

Unlike most publications of the Internal

Revenue Service, this report will not

help you prepare your income tax return.

It will not tell you what expenses are

deductible, how to report the gain or

loss on sales of investments, or what

records are important for a small

business.

This report of the Commissioner of

Internal Revenue describes how the

Internal Revenue Service went about

collecting nearly $270 billion in 1974 and

spent $1 .3 billion doing it.

Both of these figures are of significance

to you. The first represents the total

amount of your tax money that was

collected to support government programs and services, and the second is

the cost of collection .

The 1974 income tax filing period was an

excellent one from the standpoint of

Federal tax administration . More returns

were fi!ed earlier and more were processed faster than in any year in memory . While the IRS has improved its processing methods, the real credit goes to

the American people for the honest and

conscientious way that the vast majority

of you met your tax responsibilities.

We in the Internal Revenue Service

recognize our obligation to help you with

this yearly task. During 1974, we made

further efforts to improve our service to

taxpayers, as this report relates.

We also recognize our obligation to

carry out a strong enforcement program

to assure you, the taxpayers who comply

with the law, that the few who do no t

are likely to be called to task . Accordingly, we have tried to design a compliance system that is fair, effective and

comprehensive.

This report describes these activities

and others . It discusses our efforts to

inform taxpayers of their rights as well

as their obligations under the tax laws,

including their right to appeal a decision

of an IRS examiner within the Service

and through the courts . It reviews the

IRS role in the Economic Stabilization

Program, our efforts to help alleviate

energy problems, and our technical,

legal and administrative activities which

do not directly affect the ordinary taxpayer but which are nevertheless

important to tax administration.

We hope this report will help provide a

better understanding of how IRS collected your money and administered our

tax system .

Donald C. Alexander

Commissioner
Table of Content

s

Chapter1 Taxpayer Servic

e

Assisting Taxpffers

Ta12! Form Improvement .F

s

.,a, rommunications and Publications

1pe~i~2 Ma_.1LAj s MM;1,'sFance Programs

Plans for 1975

Chapter 2 Collecting the Revenu

e

_~ec ~ipts, Refunds, and Returns Filed

Presidential Election Campaign Fund

income sources on Magnetic Tape

Mathematical Verification

Delincfuent Accounts

Chapter3 Ensuring Compliance

Audit of Returns

1'2 Appea a Process

T~. Fraud LInvestigations

Chapter 4 Technical Activitie

s

Tax Rulirigs and Technical Advice

E510~qge Benefit Plan P

s

rganizations

Estate and Gift Taxes . Chapter 5 International Program

s

Tax Administration Abroad

Compliance Oversea

s

Tax Treaties

Technical Assistance to -

Other Countrie

s

Chapter6 Legal Activitie

s

_~ja-sponsiUilities of the Chief Counsel

Litigation

Leading Decisions

Technical

Administration

Li 11

141 5

is

23 2 5

30

31

T23 2

34

34

35T6

38

39

46

co

53

Chapter

7 Planning and Researc

h

Planni 6,ctivities

and Testing

Legislative Activities

Federal-State Cooperation

Activities

3roups

Chapter8 Economic Stabilization and Energ

y

Stabilization and IRS

EELe~Acfivitie

s

Chapter9 internal Management of IR

S

Maintaining IRS Int-egrit

Management nd Administratio

n

Chapter 10 Appendi

x

IRS Functional Cfi~_a-r

t

Map [7, of Reqions and D - istricts

at Of IRS Officials (1974

1

Uom issioners of the IRS (1862-1974)

titat'stical Table

s

Fnd~ex

W
iv

Notes

All yearly data are on a fiscal year basis

Unless otherwise specified . For example,

data headed 111974" pertain to the fiscal

year ended June 30, 1974 ; data shown

as of ,July 1 " are data as of July 1,

1973 .

In many tables and charts, figures may

not add to totals, due to rounding .

t of Documents,

For sale by the Supenntru

U .S, Government Printing Office

Washington, D.C. 20~40 2

Price $1 ' 85 Stock Number 048-004-00802

Catalog Number T22 .1 :974

Taxpayer Service 6Assisting Taxpayers

*Tax Form Improvements

*Taxpayer Communications

and Publications

*The Mass Medi a

9 Special Assistance Programs

*Plans for 1975
2

Assisting Taxpayers

The American tax system depends on

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 aware that taxpayers

do not find this an easy task and recognizes its responsibility for helping

them as much as possible with it. The

IRS believes that with the help it provides, most taxpayers will be able to

prepare their own returns unless their

circumstances are unusually complicated . In recent years, the IRS has put

increasing emphasis on taxpayer service, has strengthened its Taxpayer

Service Division, and has provided assistance to millions of taxpayers by

answering their questions and helping

them to complete their returns.

During 1974, the IRS received approximately 34 .5 million telephone, written,

and walk-in inquiries, compared to 33.6

million in 1973 . The total in 1974 consisted of over 24 .6 million telephone

calls, more than9.5 million walk-in inquiries, and more than 240,000 written

inquiries . More than 60 percent of these

inquiries occurred during the filing period from January 1 through April 30,

1974 . During that period, the IRS received more than 15 .4 m illion telephone

calls, almost6 .3 million walk-in inquiries,

and over 87,000 written inquiries-a total

of almost 22 million requests for

assistance .

To improve the quality of its service to

taxpayers, the IRS added more than 500

new Taxpayer Service Representatives

during 1974, for a total of more than

1,900 .

During the 1974 filing period, the IRS

scheduled extended office hours (in the

evenings and on Saturdays) at 644 locations, including 91 temporary SiteS, to

help taxpayers not able to call or visit

during normal business hours .

Mini-computers were used in four districts in 1974 for the automatic preparation of individual income tax returns

on Form 1040A. Over 31,000 returns

were prepared in this manner, primarily

for those taxpayers least able to

complete their own returns.

Telephone Assistance

Toll-tree telephone service was extended

to all 58 districts in all 50 states by

January 2,1974 . Under this system, any

taxpayer in the United States can obtain

tax assistance without having to pay a

long-distance telephone charge. Tollfree numbers are listed in the income

tax return packages provided to taxpayers . Taxpayers may also use the

toll-free telephone network to call the

Service for clarification of many of the

compute r-gene rated bills and notices

relating to their accounts. These notices

are accompanied by an enclosure which

lists a toll-free telephone number and

suggests that the taxpayer use the

number to obtain any assistance or

further explanation that may be needed.

Other correspondence with taxpayers

now contains a telephone number and,

on manual ly-p repared items, the name of

the IRS employee for the taxpayer to

call if he has any questions about the

item of correspondence.

The toll-free telephone system has made

it easier for taxpayers to obtain telephone access to IRS offices and has

made the entire assistance system more

efficient by reducing the need for a

taxpayer to visit an IRS office . 3

Walk-in Servic

e

During 1974, walk-in taxpayer service

was available in 778 permanent locations and over 300 tempo rarylocations.

Taxpayers requesting assistance were

encouraged to prepare their ow

n

returns, but IRS personnel actually

prepared individual returns where

necessary .

IDRS Installed

A milestone was reached in 1974 when

the Integrated Data Retrieval System

(IDRS) was installed in all 58 district offices and in 169 other offices in the

United States, including the office in

Puerto Rico . This system makes information contained in computer files at the

IRS Service Centers available through

video terminals to all district and area

offices. The use of this system has

significantly reduced the time required

for processing inquiries .

Tax Form

Improvement

s

Taxpayers found a number of improvements in their 1973 income tax pack .

ages. The instructions for Forms 1040

and 1040A were shortened and simplified . Taxpayers were no longer required

to list the recipients of charitable con .

tributions for which they had cancelled

checks or receipts or to list names and

dates for claimed payments to doctors,

dentists, and hospitals . All but one of

the revenue-sharing questions were

eliminated . With a change In law elimi- dnatIng Party Preference, the Presidential Election .

.ig"ationC .n

'pa ign Fund Check-Of

f

was placed on the face of

Forms 1040 and 1040A, eliminating the

need for filing a separate form .

Form W-2, Wage and Tax Statement

was changed for 1974 to facilitate t~e

mechanical matching of wage and other

information with information shown on

the return . I:
Taxpayer

Communications

and Publication

s

communications With

Taxpayers

In 1974, the Service expanded its efforts

to improve the tone, responsiveness, and

clarity of its written communications with

individual taxpayers and to reduce the

number of different types of form letters

and notices used . Service personnel

reviewed and rewrote more than 1,600

letters, notices and stuffers to improve

their quality, to prevent duplication and

to eliminate obsolete communications .

Over 500 of them were eliminated or

consolidated through this centralized

review process.

Audit Division letters notifying taxpayers

that their returns are to be audited were

revised to make them clearer and more

informative and to reduce taxpayer apprehension concerning audit actions.

Initial contact letters were completely

revised and now explain the examination

process and describe the appeal rights

of taxpayers who do not agree with the

examiner's decision.

Tax Publications

More than 100 tax publications have now

been developed by the Service to provide guidance to taxpayers . These

booklets and pamphlets explain various

provisions of the tax laws in nontechnical language to help taxpayers prepare

their returns .

Special publications have been developed for taxpayers faced with unusual

problems . For example, new Publication

583, Recordkeeping for a Small Business, shows a new businessman the

type of records that he needs for tax

purposes. Publication 584, Workbook for

Determining Your Disaster Loss, was

prepared to assist taxpayers who have

incurred casualty losses in disaster

areas.

Other new publications released in 1974

were Publication 578, Tax Information

for Private Foundations and Foundation

Managers, Publication 585, Voluntary

Tax Methods to Help Finance Political

Campaigns, and Publication 586, The

Collection Process. Publication 586, of

particular significance, explains taxpayer

rights and responsibilities with respect

to the payment of overdue taxes and

how such taxes are collected .

Two publications were substantially

revised during the year . One of them

was Publication 556, Audit of Returns,

Appeal Rights, and Claims for Refund,

which explains that most returns are

selected for examination to verify the

correctness of inc ome, exemptions, or

deductions reported on the return . It

emphasizes that the honest taxpayer

need not lear a audit and that examination

of ,

he return does not imply that

he or she has deliberately withheld information or is suspected of dishonesty

or criminal liability. The publication also

explains the system of appeals within

the Service that is available to the taxpayer who does not agree with the decision of the examiner-the District

Conference procedure and the Appellate

Division hearing-as well as the taxpayer's right to appeal to the courts .

Publication 5, Appeal Rights and

Preparation of Protests for Unagreed

Cases, also substantially revised during

the year, explains the administrative and

judicial process in detail for taxpayers

who choose to appeal their cases .

Publication5 is routinely supplied as an

attachment to the letter transmitting the

examination report in unagreed cases.

The Mass Medi

a

During 1974, the Service furnished

taxpayers with a wide variety of tax

information through the nation's mass

media . IRS material designed to inform

and assist taxpayers was sent to over

18,000 radio and television stations, daily

and weekly newspapers and magazines .

IRS personnel participated in nearly

8,000 interviews, answered over 25,000

media inquiries and delivered over 6,000

talks to citizen groups.

More than 8,500 news releases were

issued to the media by IRS offices

throughout the country covering such

diverse topics as the advantages of filing

returns early, services available to taxpayers, appeal rights, the Presidential

Election Campaign Fund check-off, and

tax relief for victims of natural and other

disasters. Tax Question and Answer

columns were prepared and distributed

weekly to newspapers and .magazines

across the nation .

The extensive cooperation received from

all segments of the media had a substantial impact on the effectiveness of

the Service's information efforts . Particularly helpful were the TV and radio

air time and newspaper and magazine

space provided to the IRS as a public

service .

Special Assistance

Programs

I

Information in Spanish

The IRS program to provide tax information in Spanish was continued and

extended in 1974 . Spanish-speaking

taxpayer service representatives were

employed at 97 locations in districts with

a high concentration of Spanishspeaking residents .

Volunteer Income Tax

Assistance Program

More than 800,000 taxpayers received

assistance under the Volunteer Income

Tax Assistance Program (VITA) in *1 974 .

Under VITA, which the IRS started in

1969, volunteers from civic, community,

church, senior citizen and student

groups provide free tax assistance to

low-income people, retired persons, and

others who have difficulty in coping with'

tax returns and who generally cannot

afford to have their returns prepared by

practitioners .

Plans for 197

5

Further improvements in the scope and

quality of taxpayer service are anticipated under a reorganization plan developed in 1974 for implementation July

1, 1974 . The reorganization separates

taxpayer service from IRS enforcement

activities at the District Office level to

ensure that the two functions are separate in appearance as well as in fact .

In addition, the IRS is upgrading the

standards of its taxpayer service position to provide more professional

qualification requirements, college-level

recruitment sources, and improved

training programs . This is expected to

produce higher quality service to the

taxpaying public. 4 5
Collecting the

Revenu e

*Receipts, Refunds and

Returns Filed

• Presidential Election

Campaign Fun d

• Income Sources on

Magnetic Tape

• Mathematical Verification

• Delinquent Accounts

1!
Receipts, Refunds

and Returns Filed

A principal responsibility of the Internal

Revenue Service is the collection of tax

revenues. In 1974, gross tax collections

rose to a record high of $269 billion, a

13 percent, $31 .2 billion increase over

1973.Individual income tax receipts

were $142 .9 billion-more than half the

total . This was a $17 .8 billion or 14

percent increase over individual income

tax receipts last year.

Corporate income tax collections

amounted to $41 .7 billion in 1974, up

$2 .7 billion (7 percent) over 1973.

Employment tax collections amounted to

$62 .1 billion, a rise of more than 19

percent over the previous year. This

category includes social security, unemployment insurance, and other payroll

taxes and payments by the elderly for

medicare. Increases in the taxable wage

base and the growth of salaries .and

wages contributed to the increase in

employment tax collections .

Returns Filed and Refunds Issued

January-Jun e

(Cumulative 000's )

1973 Jan Feb

Returns Filed

Volume 3,498 32,91 5

Percent 4.5 42. 3

Refunds

Volume 390 13,219

Percent .6 21. 7

1974

Returns Filed

Volume 3,638 34,669

Percent 4.5 43.0

Refunds

Volume 1,182 18,31 9

Percent 1 .9 29. 2

a.' R:iund3 i p,oc . .. . d by National computer Center d chadu ad for issuance by Regional Disbursing Office . Include . only forms 1040 and 1040A

Although it is the Service's job to collect

the revenue, it is also its job to make

refunds of any excessive payments . In

1974, a record total of almost 65 .8 million taxpayers received a record amount

of refunds-almost $28 .2 billion.

IRS Service Centers received and

processed 121 .6 million tax returns in

1974, compared to 117.2 million in 1973 .

A total of 83.0 million individual and

fiduciary income tax returns were filed

compared to 79 .5 million in 1973 . More

than 22 million individual taxpayers used

the short Form 1040A in 1974, an increase of approximately 650,000 from

1973 .In 1974, more returns were filed

earlier and were processed faster with

fewer problems than ever before . As a

result, the Service was able to issue

refunds significantly earlier this year.

Mar Apr May June

49,206 75,045 77,090 77,770

63 .3 96.5 99.1 loo

31,805 48,532 59,705 60,82 1

52 .3 79.8 98.2 100

51,610 77,283 79,747 80,672

64 .0 95.8 98.9 100

38,019 53,383 61,690 62,783

60 .6 85.0 98.3 100

9

Number of returns filed, by principal type of return

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

Type of retur n

Grand tota l

Income tax, tota l

Individual and fiduciary, total

Individual-citizens and resident aliens, tota l

All other individual and fiduciary

Declarations of estimated tax, tota l

Individual

Corporatio n

Partnership s

Corporation s

Other

Employment tax, tota l

Employers' Form 94 1

Empioyers' .Form 942 (household employees )

Employers' Form 943 (agricultural employees )

Railroad retirement, Forms CT-1, Ct-2

Unemployment insurance, Form 94 0

Estate tax

Gift tax

Excise tax, tota l

Occupational tax

Form 720 (retailers, manufacturers, etc .)

Alcohol

Tobacc o

Highway use tax

Other

, R-h,ad

I1 Does not include Office of international Operations returns 10401,1R . D40SS-PR and 1042, while the total in column 2, table 7

on page 100 does include these returns .

19731 1974

117,242 121,609

91,311 95,008

79,545 83.029

78,072' 81,480r

1 .473 1,54 9

6 .995

6,995

7,13 2

7,13 2

1,043 1,11 8

1,946 1,98 1

1,780 1,74 8

23,998 24,794

16,373 16,96 0

3,459 3,30 9

458

1 4

3,695

FEE

244

457

1 3

4,05 6

21 2

25 3

1,488 1,342

Sa l

31 5

1 9

5

46 1

107

528

308

1 9

5

378

104
Gross Internal Revenue Collections

(Dollars in thousands . 'For details see table I in Appendix. )

% of 1974

Source Collections 1973

Grand total

Income taxes, total

100.0

68.7

Corporation 15 .5

Indi,id,al, total 53A

Withhold by employers 1 41d7

Other 2 11 .5

Employment taxes, total 23 .1

Old-age and disability Insur nce . total 22.0

Federal insurance contributions 20.9

self-employment insurance Contribution, 1 .1

Unemployment Insurance .6

Railroad retirement .6

Estate and gilt taxes 1 .9

Excise taxes, total 6. 4

Alcohol 2.0

Tobacco 0. 9

Other 3.5

'Collections are adjusted to exclude amounts Itserred to the 0-arn-m .1 Guam

'Estimated .-Collections of indi,idual income to,

Withheld are of opened separately fr.. old age and

,d,isab,HIy insurance taxes of wage, and salaries . Simatly. Collections on Indilidual income tax not withhold

iare not a ported separately from old-age and disability

nsurence taxes on self-employment Income Th .

am m of old-ag and disability insurance lax colleNtons shown soa .

. d on estimates made by the

Secretary of the Treasury pursuant to the Provisions o f

Net Internal Revenue Collection s

Sourc e

Grand total

Corporation income taxes

Individual income taxes

Employment taxes, total

Old-age, survivors, disability and

hospital insurance

Railroad retirement

Unemployment insurance

Estate and gift taxes

Excise taxes

Increas e

1974 Amount %

237,787,204 268.952 .254 31,163,050 13. 1

164,157,315 184,648,094 20,490,779 12.15

39,045,309 41 .744,444 2,699 .135 6.9

I 125,112 .OG6 142,903 .650 17.791,644 14.2

98,092,726 112,091,799 13 .999,073 14.3

27,019,280 30,811,851 3 .722,571 -14 .0

52,081 .709 62,093,632 10,011,923 19 .2

49,514 .852 59.105,066 9,590,214 11 .4

47,144,194 56.096,1156 8,952,662 19

.0

2,370,658 3,008,210 637 .552 26.9

1X5,997 1,480,574 164,577 12 .5

1,250 .859 1,507,993 257,134 20 .6

4,975,862 5,100,675 124,813 2.5

16,572,318 17,109,853 537.535 3. 2

5,149,513 5.358,477 208,964 4.1

2.276,951 2,437,005 160,054 7. 0

9,145454 9 .314,371 168,517 1 .8

sec . 201a) of (he Social Security Act as amended,

and includes all old-age and disability insurance

taxes . The estimates shown for the 2 classes of

irdi,idual Income taxes are den,ed by subtracting

the old-age and disability insurance to, estimates from

the combined totax reported .

3

Includes Presidential Election Fund amounting to

$2,427 .000 .

~ Includes Presidential Election Fund mounting to

$27,592,000.

(Dollars in thousands )

Gross Not

Collections Refunds I Collection s

268,952,254 27,971,712 240,980,54 2

41,744,444 3,124,789 38,619,655

142,903,650 23,952,913 118,95D,73 7

62,093,632 561,011 61,532,62 1

59,105,066 535,206 58,569,861

1,507,993 497 1,507,496

1,480,574 25,308 1,455,266

5,100,675 66,034 5,034,641

17,109,853 266.965 16,842,888

1

Does not include Interest paid an refunds .

10 NOTE: Fiscal yea, ends June 1074

Presidential Election

Campaign Fun d

The statutory change which eliminated

party preference for Presidential Election

Campaign Fund designations made a

separate designation form no longer

necessary . Instead, the Service was able

to place a block on the face of the 1973

tax return which the taxpayer could

check to designate $1 of the tax for

authorization to the Fund . This change

was apparently well received by taxpayers . The Service processed approximately 78 .9 million returns between

January 1 and June 30, 1974 . Of that

total, 10 .7 million or 13 .6 percent had

designations for the Presidential Election

Campaign Fund, as compared to 3 .1

percent in the prior year. Many taxpayers who did not make designations

on their 1972 returns took advantage of

a second chance to make 1972 designations on their 1973 returns. Seven

percent (5.6 million) of the 1973 returns

showed Campaign Fund designations for

1972. The total amount designated to the

Fund on 1973 returns through the end of

the fiscal year was $25 .3 million, composed of $16 .7 million in designations

for 1973 and $8.6 million for 1972.

The Tax Dollar

Where It Came From

Fiscal Year 1974

Income Sources on

Magnetic Tape

During 1974, the IRS received almost

400 million information documents from

business firms reporting the payment of

wages, interest and dividends. Almost

160 million of these documents were

submitted on magnetic tape in 1974 as a

result of the Service's program of actively encouraging large organizations to

report on tape . This resulted in a

substantial reduction in the amount of

paper that was required to be filed .

Information Documents

Magnetic Tape Reportin g

Tax Documents Reporting

Year (Thousands) Entities

1966 26.248

1967 36 .49 2

1988 47.686

1969 58,951

1970 68,300

1971 91 .449

1972 115.008

1973 158.700

S9 1

1,04 8

2 .42 6

2 .963

4,637

8 .504

12,758

13,128

Estate and Gift Txes- . 2

Excise Ta as- 6 41

Corporation Income Taxes - 15 .5'

Employment Taxes- 23 .1 '

Individual Income Taxes- 531
The Pipelin

e

Within a service center, the group

of functions that deals directly

with the processing of tax returns is

known as "the pipeline ." This

group can be broken down into

six branches as follows : 1 . Receipt & Control

Branch

Receives, extracts, sorts,

batches, and numbers tax

returns . 2 . Examination Branch

Codes and edits tax returns

so that tax data can be uniformly converted and processed by computers . 3. Data Conversion Branch

Converts and relays information from tax returns to the

computer branch for further

processing .

12 13

q~_~

4 . Computer Branch

Records on magnetic tapes

information received from

Data Conversion . S. Input Perfection Branch

Corrects errors detected

during computer processing . 6 . National Computer

Center

Information from magnetic

tapes is posted to the taxpayer's account . As a final

step, the taxpayer may receive

an adjustment notice, a bill, or

a refund check.
14

Mathematical

Verification

During the year, the Service checked the

mathematics on 84 .5 million individual

returns .* The IRS calculated the tax for

the taxpayer on1 million returns, manually verified the tax on 1 .8 million returns, and computer verified the accuracy of the taxpayer's calculation of the

tax on 81 .6 million other returns. As a

result of the computer verification, 2

million taxpayers received $178 million

more in refunds than shown on their

returns, an average of $90 per return .

Errors on an additional almost

3.1 million returns increased the liability of

these taxpayers by $399 million for an

average of approximately $130 per return .

'This total Includes 4.0 million returns received in 1973

but c arriod over and processed in 1974 .

Gross tax, penalties and interest resulting from direct enforcement

(in thousands of,dollars)

Item

Additional tax, penalties, and interest assessed, tota l

From examination of tax returns, tota l

Income tax, tota l

Corporation

Individual and fiduciar

y

Estate and gift tax

1973 1974

5,286,453 5,101,024

4,034,402 3,724,12 1

3,459,783 3,127,166

2,517,982 2,142,34

0

941,801 984,82

6

403,943 458,88

4

Employment tax (including withheld income tax) 82,240 82,97

0

Excise tax

From mathematical verification of income tax return

s

From verification of estimated tax Payments claime

d

From delinquent returns secured, tota l

By district collection division

s

By district audit divisions

88,436 55,102

276,317 399,13

7

452,552 492,93

8

523,182 484,827

452,604 417,73

5

70,578 67,09

2

Delinquent taxes collected, total 2,446,160 2,527,845 111

to Procedural change. the FY-1974 figure were not included by In the FY-1973 figure . In FY-19 Inc A.: an elit Imaled $412 1111i ;n in notice account only a minor pan of the total would he,. be7e3n' closure

by district office Personnel . Such accounts attributable to similar activity . 15

Delinquent Accounts

The Internal Revenue Service is probably the world's largest collection

agency . In 1974, IRS District Offices

closed over3 .3 million accounts receivable, including 2.6 million delinquent

accounts and over 700,000 cases in

which a taxpayer notified of a delinquency contacted the IRS to resolve the

matter ("notice" cases). More than $2 .5

billion in delinquent taxes was collected

during the year.* In addition, district

personnel closed1 .1 million delinquent

return investigations, including 160,000

cases in notice status, securing approximately 759,000 returns, involving

$417.7 million in tax . Delinquent accounts are controlled by the Integrated

Data Retrieval System, 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.

The Service has long recognized that

preventing a delinquency is at least as

important as collecting a delinquent

account. In 1974, the concept of delinquency prevention was given new emphasis . Under the delinquency prevention program, the IRS uses a variety of

methods to identify those businesses

whose profiles and histories indicate a

significant risk of being delinquent .

When a potential delinquent is identified,

a preventive contact is made to help the

taxpayer eliminate the cause of the

potential delinquency and meet his tax

filing and paying obligations . Despite

this program, current economic conditions have had an impact on the tax

collection activities. As a result of the

current high interest rates and a tight

money supply, some businessmen have

begun to "borrow" the income and

social security taxes withheld from their

employees by improperly delaying their

deposit of these monies. This is an

'The,figur :sP thi

a

section cannot be compared with

govi us y a ra activity In this r

b

Cau a Of Changes

in procedures, points of count and definitio- under as 0 at

the Integrated Data Retrieval System (IDRS) .

unlawful way to obtain financing . To

cope with this problem, the Service is

considering revisions of its procedures

to permit a closer monitoring of the

Federal Tax Deposit System, and has

recommended legislation that would

make this unlawful borrowing uneconomical as well by raising the interest rate

charged on tax delinquencies to9

percent and by accelerating or increasing failure to pay penalties .
Ensurin

g

Compliance

• Audit of Returns

• The Appeals Process

• Tax Fraud Investigations
18

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

tool used to induce voluntary compliance, every return is subject to some

scrutiny by man and machine. When a

return is received in one of the ten IRS

Service Centers, it is first checked

manually for completeness and accuracy

and for certain mechanical errors such

as the claiming of a partial exemption or

duplicate deductions . Then computers

are used by the Service Centers to

check the accuracy of the taxpayer's

arithmetic (See Mathematical Verification, page 14) and to 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 audit is a computer

program of mathematical formulae-the

Discriminant Function (DIF) systemwhich 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, the IRS has reduced the number

of taxpayers contacted whose audit

would result in no tax change (all taxes)

from 41 percent in 1969 to 28 percent in

1974 .

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 usual 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, if 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 tax credit after filing their

returns.

Improved Selection Procedures

In 1974, the Service improved and expanded several of the mathematical

formulae used under the DIF system to

identify and select returns for examination . In addition, for the first time, the

Service developed DIF formulae for the

selection of partnership returns.

Audit Reorganization

The structure of the audit division in the

District Offices had remained substantially unchanged since 1959 . In 1974, 56

of the 58 district audit divisions were

reorganized to bring tax auditors and

revenue agents together in the same

groups and branches to improve the

quality of audits and to provide better

management and supervision of employees engaged in examinations and

related tasks. The remaining two district

audit divisions will be reorganized along

the same lines in 1975 . f

19

Number Returns Examined (thousands) Fiscal Year 1970 thru 1974

Type of Return

Revenue Agents

Grand Tota l

Income Tax Tota l

Individual and Fiduciary 315

Corporation

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise& Employment

Tax Auditors

Grand Tota l

Income Tax Total

Corporation

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise& Employment

Total

Grand Total

Income Tax Tota l

Corporation

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise& Employment

FY 1970 1971

623

484

159

10

NA32

107

1,358

NA42 4

160

10

NA36

131

566

429

289

1291 1 N A3 6

100

NA4 1 8

130

11

NA4 1

117

1972

593

424

271

135

18

NA35

133

NA52 5

136

18

NA

40

158

1973

588

409

265

122

222 4 1

136

1,386 1,080 1,103 1,183 1,499

1,058 1,073 1,143 1,457

Individual and Fiduciary 1,357 1,057 1,072 1,143 1,45

5

8

31

2,010 1,646 1,696 1,771 2,18

8

1,842 1,487 1,497 1,554 1,963

Individual and Fiduciary 1,672 1,346 1 .343 1,409 1,76

7

122

222

49

167

1974

689

506

311

1341 94249

133

10

32

134

20

42

59

165
Recommended Additional Tax and Penalties

Fiscal Years 1970 thru 1974 (Millions

)

Type of Return

Revenue Agents

Grand Tota l

Income Tax Tota l

Individual and Fiduciary

Corporation

1,680 .5 1,935.5 1,828.9 3,068.8 3888.4

16 .1 NA

437. 1

72.3

1 .7 NA

477 .4

95 .7

4. 3 N A

439 .0

139 .4

13.2

4 .8

10. 5.4

700 .3 577. 5

164 .1 205. 9

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise

& Employment

Tax Auditors

Grand Tota l

Income Tax Total

Individual and Fiduciary

Corporation

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise& Employment

Total

Grand Total

Income Tax Total

1970 1971 1972 1973 197

4

2,918 .6 3,216.2 3,177.8 4,798.6 5,549. 7

2,420 .9 2,653.3 2,612.5 3,955.4 4,789. 9

724 .3 718.5 779 .6 873.6 896. 7

11680.5 1,933.1 1,828.6 3,068.6 3,888.0

16 .11 .7

4 .34. 8

NA - NA

430. 4

67. 6

182 .1

170 .7

170. 3.4 6.7

471 .1

91 .9

192. 1

181 .9

NA

432.2

235 .4

222. 3

179 .5 222 .0 2. 4 6 .3

4.73 .9 .3 6 .8 6.3

13.2 N A

690. 4

152 .7

269 .9 .4

564 .3

195 .4

359. 5

248 .6 335 .8

248. 3

.3

335. 3. 3

9._9 13. 2

11 .4

3,100 .7 3,408 .3 3,413.1 5,068.4 5,909.2

2,591 .2 2,835.2 2,834.8 4,203.9 5,125 .7

Individual and Fiduciary 894 .6 898.0 .1,001 .6 1,121 .9 1,232. 2

Corporation

Exempt Organizations

Pension Trust (990P)

Estate& Gift Tax

Excise& Employment

21

20

Results of Audit Activit

y

The Service examined almost 2.2 million

returns in 1974, an increase of almost

417,000 over 1973 . This was the largest

number of examinations since 1969 . The

increase over 1973 was the largest increase in the number of returns audited

since 1961 . There was also a substantial

increase in the number of field audits

conducted from 588,098 in 1973 to

688,769 in ~1974-an increase of more

than 100,000 field audits . Audit coverage

also increased, from 2.0 percent of all

returns filed in 1973 to 2 .4 percent in

1974, the first major increase since 1963 .

The 1974 examination program included

the examination of returns in the District

Offices and the examination of an additional 80,200 returns by the Service

Centers. (See next column for further

information on this activity. )

The 1974 audit program was effective as

well as comprehensive-$5.9 billion in

additional tax and penalties was recommended as a result of 1974 audit

activity, a record high, and an increase

of $800 million over the previous record

of $5.1 billion recommended in 1973.

Eighty percent of the returns audited

were individual or fiduciary returns.

These accounted for $1 .2 billion of the

additional tax and penalties recommended . The examination of corporate

returns, amounting to only 6.4 percent of

the total number of returns audited,

produced $3.9 billion of recommended

additional tax and penalties . The audit of

estate and gift tax returns resulted in tax

deficiency recommendations totaling

$580 million . The remainder, about $206

million, was derived from the examination of excise and employment tax

returns .

Not all audits result in an increase in tax

liability-the IRS audit program is intended to determine the correct tax, no

more and no less. In 1974, IRS audits

disclosed over-assessments on 102,765

returns, resulting in refunds of $363 .5

million .

Service Center

Examinations

The IRS Service Center review program

was started in 1972 . This program 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 714,000 returns

were checked in Service Centers in

1974, a 48 percent increase over 1973.

More than half of these involved returns

of taxpayers claiming obviously unallowable items, such as a casualty loss

unreduced by the $100 limitation . More

than 406,000 returns with unallowable

items were corrected in 1974, compared

to approximately 399,000 in 1973 . Another major item verified through Service

Center correspondence in 1974 was the

issue of taxpayers claiming head of

household status-195,000 returns

claiming this status were checked .

The Service Centers also conducted

correspondence examinations of 80,200

returns selected under District Office

criteria . These returns generally involved

such issues as charitable contributions

or interest payments which could be

satisfactorily resolved through correspondence with the taxpayer .

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 1974,

1,671 cases involving overassessments

of $1 .1 billion were reported to the Joint

Committee, as compared with 1,532

cases and $1 .2 billion in 1973 . During

the year, the format of reports to the

Joint Committee was simplified, with the

cooperation of the committee staff. This

change resulted in faster processing of

cases and earlier refunds to taxpayers .

Under the new procedure, the time spent

in preparing cases for Joint Committee

review has been reduced by 40 percent .
22

Computer-Assisted Audits

With more taxpayers utilizing computerized accounting systems, the Service

is continually expanding its computer

application techniques in tax audits .

These applications are tailored to the

specific accounting system employed by

taxpayers, thus permitting rapid retrieval,

analysis and calculation of data essential to the examination . Savings are

effected for both taxpayers and government. For example, in 1974 the

Service saved over 100,000 man-hours

through the use of computer

audit applications. _

The Service has provided for the

growing number of computer applications by increasing the number of

trained specialists from 43 in 1973 to 84

in 1974 . Further increases are planned

for 1975 . The specialists are revenue

agents who have been given in-depth

training in computer hardware, programming languages, and techniques .

They analyze automatic data processing

systems and work with examining agents

in planning and designing computer

applications of audit methods .

In addition, the Service has developed a

system of generalized computer programs called the Programmed Audit

Library (PAL). The system, which contains computer programs specifically

designed for tax audits, became operationai in August 1973. Essentially, the

programs are designed to extract information from the taxpayer's computerized records and can be adapted from

one computer installation to another.

Team Audits

Because of the complexity of the accounting operations of most large

corporations and of the tax issues that

must be resolved, the IRS has increasingly turned to the team audit or coordinated examination approach. This

approach combines the skills of the

accountant-revenue agent with those of

computer audit specialists, international

examiners, economists and engineering

agents .

During 1974, coordinated examinations .

of large corporations resulted in recommended dollar deficiencies per case

year of approximately $1 .6 million as

compared to $1 .1 million per case year

for 1973 .

The IRS has initiated a practice of

conducting industry-wide audits, involving the contemporaneous examination of all major companies in a given

industry, to make sure that certain tax

issues related to that industry are

treated uniformly throughout the industry. This technique was used in the

examination of one industry in 1974 and

the IRS plans to expand the concept to

additional industries in 1975 .

23

The Appeals Process

Administrative Appeals

The goal of the administrative appeals

system of the Internal Revenue Service

is to provide taxpayers who disagree

with a proposed adjustment to their tax

liability with a prompt independent review of their case . The system is designed to minimize inconvenience, ex .

pense, and delay to the taxpayer in

disposing of contested tax cases. The

appeals function operates at district

level through 58 offices and at regional

level through 40 appellate offices, located throughout the country . As the

need arises, conference opportunities

are provided to taxpayers at various

other IRS locations by circuit-riding

conferees . A conference will be ar

.

ranged at a place and time as convenient as possible for the taxpayer .

Although differences in jurisdiction and

authority exist between the district and

regional conference activities, both have

as their principal objective the early

disposition of disputed cases on a basis

which reflects the fair and impartial

application of the law . For an initial

appeals conference, the taxpayer may

go either to the district or to the regionaWffice . If a conference is held at

the district level and agreement is not

reached, the taxpayer may request that

his case be considered at the regional

appellate office . If the disputed tax is

$2,500 or less, the taxpayer can have a

conference in the district office without

filing a written protest and can also have

a subsequent conference in the regional

appellate office-still without a written

protest .

Proceedings in both offices are informal . A taxpayer may represent himself or be

represented by his attorney, CPA, accountant or other advisor enrolled to

practice before the IRS. At the conference, he is given the opportunity to

present his views . If a mutually acceptable basis for resolving the tax

dispute cannot be reached, the taxpayer

is advised of his further appeal rights

and of the options available to him .

In the great majority of cases, taxpayers

and district or regional conferees reach

a mutually acceptable basis for resolving

tax disputes . Consequently, very few

cases go to trial . In the past ten years,

97 percent of all disputed cases were

closed without trial . District Conference

Staffs consistently reach agreement with

the taxpayer in about two-thirds of the

cases they consider . in 1974, the appeals function disposed of 47,602 cases

by agreement ; the Tax Court tried 997

cases ; and the United States District

Courts and Court of Claims tried 369

cases.
Appellate Workload

The cases considered in the appeals

process cover a wide range of issues,

from the most elementary to the most

complex, and involve proposed additional tax or claims for refund ranging

from very small amounts to millions of

dollars . They involve individual and

corporation income tax, estate tax, gift

tax, excise and employment taxes, and

offers in compromise . Deficiency cases

can be considered both before a petition

for hearing is filed in the Tax Court

(non-docketed cases) and after the

petition has been filed (docketed cases) .

Non-docketed cases make up about 71

percent of the appellate workload . In

1974, 74 percent o

' I

the non-docketed

cases closed by appellate offices were

closed by agreement with the taxpayer.

The remaining 29 percent of the appellate workload consists of docketed cases

in wh i ch setti6ment'negotiations continue

in the appellate offices after the filing of

the petition . In 1974, approximately 77

percent of the docketed cases closed by

the appellate offices were closed by

agreement with the taxpayer.

New District Conference

Procedure

On April 1, 1974, District Conference

Staffs were given the authority to settle

cases for tax years where the proposed

deficiency or claimed refund is $2,500 or

less . This change allows District Conferees to take into account the hazards

of litigation-the possibility that the

Service might lose the case if it were

litigated-so that small cases may be

resolved at the earliest opportunity .

Previously, District Conferees could not

consider the hazards of litigation in

settling disputed issues, and many

taxpayers who wanted to contest Service

actions involving small amounts of tax

and unclear issues were faced with the

necessity of appealing the case to the

regional appellate office before a settlement could be reached .

This new service was available in 1974

to taxpayers in approximately 800 offices

throughout the country . It is expected to

benefit taxpayers in terms of time,

convenience, and expense, and is expected to benefit the IRS by permitting

more effective use of district and appellate conferees, while reducing the

number of small cases going to the

regional appellate office and/or the

Small Tax Case Division of the

United States Tax Court.

Other Appeal Options

If no agreement is reached at either the

district or the regional level, in most

instances the taxpayer can file ah appeal with the United States Tax CourL

Under the Small Case Rules of the Tax

Court, when the amount in dispute does

not exceed $1,500 simplified procedures

are available for small taxpayers. The

timely filing of an appeal with the Tax

Court prevents the assessment and

collection of the tax until the court has

made its decision, except in unusual

circumstances . Filing an appeal does not

rule out the possibility of settling the

case, however. Even though an appeal

has been filed and the case is docketed

for trial, the taxpayer may still reach a

settlement with the appellate office at

any time before the trial begins .

If the taxpayer does not want to litigate

his case in the Tax Court, he can pay

the deficiency in tax and file a claim for

refund at any time within two years from

the date of payment . The same system

of administrative appeals is then available, and if the claim is denied by the

IRS, or if the IRS takes no action for six

months, the taxpayer may file suit against

the Government in either a United States

District Court or the Court of Claims.

24 25

Tax Fraud

Investigations

The Intelligence Division is responsible

for the enforcement of the criminal

provisions of the tax laws. This includes

the investigation of cases involving income, estate, gift and excise tax evasion, failure to file returns, failure to

remit trust funds collected, and the filing

of false withholding exemption statements, false claims for refunds and false

claims of estimated tax credits .

To improve its ability to identify suspected criminal tax violators and tax

evasion schemes, the Intelligence Division has begun using automatic data

Processing equipment to keep pace w,ith

and identify many of the more sophis

.

-

ticated techniques of tax evasion .

In 1974, the Intelligence Division completed 7,215 investigations and recommended prosecution of 2,454 taxpayers.

See page 45 for information regarding the results of these recommendations.

During the year, the Inte Iligence Division

conducted several special projects in .

voiving areas of serious non-compliance'

One project dealt with the investigation

of tax evasion by public officials involved in Federal Housing Authority

programs, including FHA appraisers and

inspectors as well as contractors . The

Division also investigated the use of

foreign bank and brokerage accounts for

tax evasion schemes, and tax evasion

resulting from Payoffs and kickbacks in

the recording industry.

Cases Prosecuted

Unfortunately, tax fraud is not confined

to any particular occupational or social

group. Instead, it reaches across a wide

spectrum of industries and occupations .

In 1974, the IRS continued to maintain a

vigorous and balanced program of in .

vestigating tax fraud and recommending

prosecution wherever warranted . The

following cases illustrate just a few of

these successful Prosecutions:

A Colorado state legislator was found

guilty of income tax evasion for each of

five years, 1966 through 1970. The verdict came after a two-week trial in which

the government called more than 100

witnesses to prove a net worth and

expenditures case showing that the

legislator had taxable income of

$140,000 during five years in which he

reported taxable income of only $15,000.

A Kansas City insurance agent was

sentenced to three years in prison for

one count of income tax evasion for

1966 . The investigation disclosed a

$23,176 tax deficiency.

A night club owner in St. Louis, Missouri, and his wife were sentenced to

prison for two years and one year, respectively . He pleaded guilty to two

counts of failure to file for the years

1970 and 1971 ; his wife pleaded guilty to

one count of failure to file for 1970 . The

sentences were the maximum prison

sentences that could be imposed under

the Internal Revenue Code for failure to

file .

A farmer in Phoenix, Arizona, who is a

self-styled tax protester was sentenced

10

three years in prison and fined $6,000

for failing to file tax returns for the years

1968, 1969, and 1970. His total income

for the three years amounted to

approximately. $60,000.

On September 26, 1973, a member of the

Illinois state legislature entered a plea of

guilty to subscribing to a false tax return

for the year 1971 and conspiring to

commit mail fraud .

The national chairman of a tax rebellion

committee based in Fresno, California,

was convicted on four counts of failure

to file income tax returns for the years

1969 through 1972 .

A political figure in southern Texas was

sentenced to five years in prison, fined

$14,000 and placed on probation for five

years after his release from prison . He

was convicted on four counts of tax

evasion and four counts of making and

subscribing false returns. He had pre .

viously served time in prison during 1934

for tax evasion .
26

Organized Crime and Strike

Force Activities

The IRS also cooperates in the Federal

government's fight against organized

crime by participating in the Federal

Organized Crime Strike Forces Program .

Strike Forces are located in 18 major

cities and are led by a Strike Force Attorney-In-Charge from the Justice Department . During 1974, th 9

IRS contributed

over 602 man-years of direct investigative and examination time to the Strike

Force effort . From the inception of the

organized crime program in 1966 through

June 30,1974, the IRS has recommended the assessment of $737.6 million

in additional taxes and penalties against

its targets . A total of 442 organize

d

crime members and their associates

have been convicted or have pleaded

guilty to various tax charges since 1966 .

During 1974, the Service recommended

$169 .7 million in taxes and penalties and

had 174 convictions or guilty pleas.

The following are examples of Organized

Crime and Strike Force activities

:

An investigation of the meat marketing

industry in the New York City metropolitan area resulted in the indictment of

three top officials of the Meat Cutters

Union and 13 executives of supermarket

chains on March 25, 1974 on charges of

allegedly evading Federal income taxes

on bribes and shakedowns totaling more

than $1 .7 million .

During this probe, recalcitrant witnesses

who had previously refused to talk with

Service officials for fear of retaliation

decided to cooperate with a Grand Jury . A total of twenty-six individuals were

granted immunity from prosecution in

return for testimony vital to the successful completion of the income tax

investigations. A prominent Rhode Island loanshark and

bookmaker was sentenced to serve one

year in prison for failing to file his income tax returns. The sentence is to be

served after the completion of his current !wo-year sentence on a mail fraud

conviction . A major Boston bookmaker was sentenced to serve 3 years in prison and

fined $20,000 alter conviction of conspiracy and income tax evasion for 1966

and 1967 . The 3-year sentence is to be

served after the completion of his 6~ to

15-year sentence for bookmaking.

Narcotics Trafficker

s

in August 1971, the IRS initiated a

project for intensive tax investigations of

suspected narcotics traffickers. In cooperation with other Federal, state and

local law enforcement agencies, the

Service began the process of identifying

and investigating significant narcotics

traffickers and financiers who were

suspected of having violated the Internal

Revenue laws. In 1974, a year in which

the IRS reviewed its activities and iis

investigatory sta ndards in the program,

the IRS completed 663 criminal tax investigations. During the same period, the

Service obtained 86 indictments and 88

convictions in tax cases involving narcotics traffickers . The indictments and

convictions resulted from cases completed during prior years as well as from

cases completed during the current year.

The IRS assessed taxes amounting to

$75 .6 million, and seized $8.1 million in

cash and property during the year.

The cases which resulted from this

project during the past year included the

following : A reputed East Harlem drug trafficker.

with a previous record of two narcotics

convictions, was found guilty of criminal

tax charges, sentenced to four years in

prison and fined $10,000. The indictment

charged that the individual and his wife

used false names to purchase expensive

assets and made extensive use of cash

in an attempt to evade income taxes of

more than $70,000 over a four-year

period .

27

A Houston, Texas narcotics trafficker

pleaded guilty inU .S. District Court to

tax charges despite his initial claim that

the requirement to report income from

the sale of heroin would violate his

constitutional right against self-incrimination, and was sentenced to six years

imprisonment and fined $10,000 . He had

attempted to evade $209,390 in taxes on

income totaling $450,000 . A Mobile, Alabama narcotics distributor

was sentenced to 33 years in prison-5

years for income tax evasion for 1971, 3

years for making false statements on his

1971 income tax return, 15 years for

conspiracy to sell heroin, and 10 years

for extortion .

Special Enforcement

Problems

In 1974, the Service began a reevaluation of its participation in investigations

of organized crime figures and narcotics

traffickers to ensure that its criminal

enforcement efforts were directed at the

most significant violators of the income

tax laws . While the Service will continue

to cooperate with other Federal agencies

in the conduct of investigations of

criminals who have violated the tax laws

and maintain a strong drive to enforce

the tax laws against criminals, its efforts

in the future depend, of course, upon

available resources . These resources

must be used in an efficient manner that

will have the maximum possible impact

on all who engage in criminal violations

of the tax laws.
Technical

Activities

D

9 Tax Rulings and Technical

Advic

e

*Employee Benefit Plans * Exempt Organizations * Estate and Gift Taxes
I

30

Tax Rulings and

Technical Advice

The Service's ruling program consists of

private letter rulings and published

Revenue Rulings . A private letter ruling is a written

statement issued to a taxpayer by the

Office of the Assistant Commissioner

(Technical) in 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. Private rulings are

not precedents and may not be relied

upon by other taxpayers . . A published Revenue Ruling is an interpretation of the tax laws issued by the

National Office and published in the

Internal Revenue Bulletin for the information and guidance of taxpayers,

practitioners and IRS personnel . Most

Revenue Rulings are based on letter

rulings which are found to be precedent-setting or to have such broad applicability that general guidance should

be offered to people in similar situations.

Technical advice is advice 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

w

ith the audit of a taxpayer's return or c laim for refund or

credit. Frequen tly' the district director's

request is made in response to the

suggestion of the taxpayer that technical

advice be sought .

Internal Revenue Bulletin

The weekly Internal Revenue Bulletin

contains not only the above-mentioned

Revenue Rulings, but alsoRevenue

Procedures, which announce practices

and procedures that affect taxpayers'

rights and obligations, and other significant technical developments for the

guidance of taxpayers, tax practitioners,

and Service personnel . The contents of

the weekly Bulletins are compiled and

published semiannually as Cumulative

Bulletins.

Requests for Tax Rulings and Technical Advice (Closings) 197

4

Subject

Total

Actuarial Matters

Administrative Provisions

Employment& Self-Employment Taxes

Engineering Questions

Estate and Gift Taxes

Exempt Organizations

Other Excise Taxes

Other Income Tax Matters

Pension Trusts

:,ro,addifion . the S-1c, Processed 14,329 applications

taxpayer. for permission to change their account

.

Taxpayers' Field

Total Requests Request

s

15,619 14,017 1,60

2

1,077 1,019

504

2

472 423

109 69

382 317

588 4 9 4 0 6 5

4,547 4,120 42

7

515 421

94

6,498 6,196 30

2

1,969 1,410 55

9

ing period of method and made 932 earnings and

profit determinatio- 31

During 1974, the IRS published in the

Bulletin 636 Revenue Rulings, 44 Revenue Procedures, 13 Public Laws relating to Internal Revenue matters, 5

Committee Reports,

7 Executive Orders,

37 Treasury Decisions containing new or

amended regulations, 10 Delegation

Orders,3 Treasury Department Orders,

5

Court Decisions,7 Notices of Suspension and Disbarment from Practice

before the Service, and 150 Announcements of general interest .

The Bulletin Index-Digest System, which

was first published in 1973, provides a

comprehensive and rapid method of

researching material published in the

Internal Revenue Bulletin on Income,

Estate and Gift, Employment and Excise

tax matters. More than 9,400 subscriptions to the Bulletin Index-Digest were

ordered from the Superintendent of

Documents by individuals and firms

outside the Service in 1974, more than

twice the subscriptions ordered in 1973.

Under this new system, the researcher

can identify currently applicable Revenue Rulings and other Bulletin material

by looking in only two places-a basic

volume and the latest quarterly c.,

semi-annual cumulative supplement .

The Service Plans to update the Bulletin

Index-Digest every two years . Thus,

material currently available in the basic

volumes and in cumulative supplements

through December 1974 will be consolidated and republished next year.

Employee Benefit

Plans

Everyone involved with pension and

profit sharing Plans followed closely the

reform legislation pending in the Congress at the end of the fiscal year . The

Internal Revenue Service was no ex .

ception . Its activities in this area in 1974

were affected both by the need to prepare to implement the pending legislation and by the fact that the number of

new pension and profit-sharing plans

continued to increase steadily. The

pending legislation was signed into law

by President Ford as P .L . 93-406, the

Employee Retirement Income Security

Act of 1974, on September 2, 1974 .

The Internal Revenue Service carries out

its regulatory responsibility in the employee benefit plan area by issuing

advance determination letters regarding

the qualification of pension, profitsharing and other employee benefit

plans and by conducting an examination

program to determine whpther plans

continue to qualify in operation and to

verify the appropriateness of deductions

for plan contributions . The number of

determination letters issued with respect

to corporate pension and profit-sharing

plans during 1974 increased approximately 6 percent over 1973 .

Problems stemming Irom the large

numbers of employee benefit plans, the

billions of dollars involved in these

plans, and the need for safeguarding

pensions generated a great deal of in .

terest by the press and the Congress

this year.
32

Exempt Organization

s

The Internal Revenue Code gives the

IRS regulatory authority over tax-exempt

organizations . In 1974, the Service devoted 390 man-years to the examination

of returns of 20,000 exempt organizations.

During 1974, the Service received 35,470

initial applications from organizations

seeking a determination of their tax

exempt status or seeking determinations

of the effect of organizational change on

their status, an increase of 2,184 over

comparable 1973 figures. It issued 26,545

determination letters, or7 percent more

than in the prior year .

In 1974, IRS began winding up its task

of classifying charitable organizations

according to their private foundation or

public charity status. By the close of the

year, an estimated 31,000 organizations

were identified as private foundations

under the provisions of the Tax Reform

Act of 1969 . In addition, the Service is

completing its undertaking to examine

all private foundations by December 31,

1974. As in the past, the largest, most

complex foundations are examined on a

two-year audit cycle .

Preparations have been completed to

implement next year a Taxpayer Compliance Measurement Program (TCMP)

covering the examination of Section

M11(c)(3) and 501(c)(4) organizations.

This program will identify patterns of

compliance and noncompliance and

certain characteristics of the exempt

organizations being studied . It will be

the first time that a TCMP program has

been used with exempt organizations .

The number of active entities recorded

on the Exempt Organization Master File

increased from 630,000 in 1973 to 673,000

-in 1974. A substantial portion of

the increase reflects subordinate units,

exempt under group rulings, which are

now required to file returns under the

Tax Reform Act of 1969 . During the year,

a revised Cumulative List (Publication

78) of charitable organizations under

Section 170(c) of the Internal Revenue

Code was published. This publication

contains information on the status of

135,000 organizations . It now employs a

coding system to assist potential contributors and others in identifying the

type of organization and the applicable

limitation on deductibility . Because the

information in Publication 78 is now

maintained and updated by computer, it

can now be issued annually with

cumulative quarterly supplements .

Estate and Gift Taxes

IRS field offices are using the National

Office computerized program for making

interrelated estate and gift tax computations. In 1974, the National Office

processed approximately 445 requests

for such computations.

international

Programs

0 Tax Administration Abroad • Compliance Oversea s • Technical Assistance to

Other Countries

• Tax Treaties
Tax Administration

Abroad

The Service maintains a network of

permanent foreign offices at which its

representatives engage in a variety of

taxpayer assistance and compliance

activities and provide a valuable communication link with foreign tax agencies . At present, there are offices in

Bonn, London, Paris, Rome, Tokyo, Ottawa, Mexico City, Manila, and Sao

Paulo .

In 1974, five additional offices were

authorized for Canberra, Australia ; Caracas, Venezuiala; Johannesburg, South

Africa ; Kuala Lumpur, Malaysia; and

Teheran, Iran. The new offices are

scheduled to be fully operational in

1975.

In order to provide better, more efficient

service, the IRS now requires employees

seeking permanent assignment abroad to

develop foreign langyage capability. It

also encourages employees on temporary detail to develop this skill . A language laboratory was established in the

Office of International Operations (010)

for employees aspiring to foreign

assignment.

The Overseas Taxpayer Assistance

Program in 1974 was the most comprehensive in its 21-year history. For the

first time, 010 assigned a lull-time

Taxpayer Service Representative (TSR)

to each of its nine foreign offices fro m

Mrs E,ra Conal, 010 Prograrn

Aida assigned to Me AmenCen

Embassy in Mexico COY . is

presented an -ard for W .

Standing oartiontanoe which

included a high quaUy increase

Director McGo~ presents

cibabDn to E,,ri Corral in

presence of Ambassador

J-ph J . J34

January through June . Eleven other

TSR

'

s travelled to 99 cities in 48 nountries providing individual counselling or

conducting classroom-type seminars .

More than 51,000 civilians abroad received assistance under this program .

Another annual service provided by 010

was a four-day course of tax instruction

at eight military bases around the world .

During January and February, approximately 600 servicemen and women attended these classes to learn how to

provide tax assistance to other military

personnel stationed overseas .

Compliance Oversea s

For the third consecutive year, the

Service continued to improve overseas

compliance by detailing teams of Revenue Agents and Tax Auditors to its'

foreign offices to conduct on-site audits .

The Service began a new program in

1974 to counteract delinquency in tax

payments by taxpayers residing abroad .

Under this program, delinquent taxpayers are contacted by Revenue

Officers detailed abroad for this purpose . This collection program is

expected to bring about a significant

reduction in the overseas delinquency

problem.

Continissioner Donald C .

Alexander and his comterDart,

Robert Stanbury, Minstw of

National Rwonue of Canada.

35

Tax Treaties

The tax treaty programs are intended to

eliminate double taxation and to eliminate tax avoidance. Pursuant to treaties,

U .S. and foreign tax officials exchange

information and hold periodic meetings

to develop new avenues of cooperation

and to clarify application and interpretation of tax treaties . During the past

year, an income tax treaty was signed

with Romania . This treaty and a similar

agreement between the U .S. and the

Soviet Union await ratification by the

Senate.

Competent Authority Cases

The Assistant Commissioner (Compliance) is the U .S . "competent authority"

responsible for administering tax treaties . The competent authority procedures

are used to avoid double taxation and to

resolve questions of interpretation of the

law .

In the past few years, there has been a

continuing growth in taxpayer requests

for competent authority assistance.

During the same period, the competent

authority has made considerable progress in resolving treaty issues. For example, the most frequent and difficult

cases involve the issue of how income is

to be allocated between related U .S . and

foreign taxpayers . In more than 95

percent of such cases closed by the end

of 1974, the competent authority has

negotiated agreements providing full

relief from double taxation . The income

adjustments providing relief in these

cases exceeded $51 million, including

both U .S . and foreign adjustments .

Inability to provide relief in the remaining cases was the result of procedural barriers (statutes of limitation on

refund, etc .) rather than inability to

reach agreement with foreign competent

authorities . In negotiating new tax

treaties, provisions are being added

which waive these procedural obstacles

to relief. Waiver provisions are now included in the income tax treaties with

West Germany, Japan, the United

Kingdom, France, the Netherlands, Belgium, Norway, Finland, and Trinidad and

Tobago .

Exchange of Information

Because of the recent growth of international operations by many U .S . companies and individuals, the IRS has

expanded its information-exchange

program with tax agencies of treaty

countries .
I

36

Technical Assistance

to Other Countries

The Internal Revenue Service's Tax

Ad m inistration Advisory Staff assigns tax

ad v isors to interested developing

countries to help them modernize their

tax administration systems . At the end of

1974, there were 14 advisors in7

countries-Bolivia, Colombia, Guatemala, Paraguay, Trinidad and Tobago,

Uruguay and South Viet Nam.

Tax officials from other cc untries are

welcome to visit IRS facilities to discuss m

utual problems or for training purposes. During 1974, 266 officials from 57

countries made such visits. More than

3,600 officials from 111 countries have

visited the IRS during the past 12 years .

Canada topped the list in 1974 with a

total of 35 visitors, including the Minister

of National Revenue, who, along with 10

staff members, met with the Commissioner and key IRS officials for two days

in February.

The inter-American Center of Tax Administrators (CIAT), which consists of 26

member countries of the Western

Hemisphere, sponsors technical seminars in tax administration each year. The

Commissioner led theU .S . delegation to

the eighth annual CIAT assembly in

Kingston, Jamaica, in May and delivered

a paper on the organizational components and design of management information systems for tax administration .

Legal Activities

• Responsibilities of the

Chief Counsel • Litigation • Leading Decisions • Technica l • Administration
38

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 all non-tax legal

questions .

Chart of New Organization

July 21, 1974

Associate

Chief Counsel

(Litigation

I

H

Tax Court

Lit igation

Division

I r criminal

rL T

Refund

Litigation

Divisio n

H

Disclosure

Division

His advisory responsibilities can be divided into two major areas : litigation and

technical .

Organization

Giving effect to the reorganization which

occurred as of July 21, 1974, the Office

of the Chief Counsel is organized as

follows :

Chief Counsel

Deputy Chief Counse l

H

Assistant

Chief Counsel

Genera

LitigationI

Division

General

Legal Services

Division

=1In .,

Div 'pet 'v son

Adm rimitrofive S i.,srin :c..

__EDivislo' an.

Regional Counsel

North-Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Wester n

T :I,a Court General Litigation and Criminal Ta, have

fi counierparts. Refund Litigation, Disclosure, InterAssociate

Chief Counsel

(Technical )

I

~

r_~!qisllation

Ren

ulations

mewqu. 'at' n

prelati-, Legislation and Regulations, Administrative

Services, and General Legal Services do not .

I

39

Litigation

Both the National Office and the fisild

offices are actively involved in litigation .

Tax Court Litigation, General Litigation

and Criminal Tax work are handled in

the field offices subject to the overall

direction of the National Office . Refund

Litigation and Disclosure activities are

centralized in 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. Tax Court

litigation during the last half of 1974 was

carried out in accordance with new Tax

Court Rules of Practice and Procedure ,

Tax Court Cases Received

1970-197 4

6,969

8,29 9

1,070

8,94 9

2,277

9,624

2,650 ..

Small Tax cases

I __L_

8,799

2,380

1970 197 1 1972 1973 1974

effective January 1, 1974, which for the

first time provide for limited pretrial

discovery in Tax Cq;jrt practice .

Refund Litigation

In refund suits in the United States

District Courts and the Court of Claims,

the Service is represented by the Department of Justice, assisted by the

Refund Litigation Division . In 1974, there

was a marked increase in the number of

interrogatories and requests for the production of documents served on the

Government in tax refund suits, and an

increase of more than 20 percent in the

number of suits filed over the number

filed in 1973.

Refund Litigation Cases

Received 1970-1974

1,189 1,177 1,042 931

W

1970 1971 1972 1973 1974
Tax in Litigation-Tax Court

Does not include Proposed

Assessments agreed to by Taxpayers

in District or Appellate Conferences .

(In Thousands of Dollars)

Status

Number

All Tax Court Cases I

Taxes and Penalties Overpayments

of Deter. DeterCases Asserted mined Claimed mined

Pending July 1, 1973 13,449 $2,025,18 9

Received 8,799 720,668

$288,22 0

24,186

Disposed of' 8,504 534,933 $153,537 30,876 $ 5,560

Recovery Rate ' 28.7% 18.0 %

Pending June 30, 1974 13,744 2,210,92 3

Pending July 1, 1973 1,678 $ 955

Received 2,380 1,347

281,529

Tax in Litigation-Refund Suits'

(in thousands of dollars)

Statu s

District Courts

Number Amount

of

in Amount

cases Dispute Refunded -1

Pending July 1, 1973 2,334 $299,108

Received 1,009 113,733

Disposed of I

Recovery rate

868 89,108 $23,028

25.8 %

Pending June 30, 1974 2,475 323,73 3

Court of Claims

Pending July 1, 1973 406 $291,437

Small Tax Cases Received

$ 45

4 8

Disposed of ' 2,420 1,294 $ 704 52 $ 25

Recovery Rate ' 54 .4% 48.1 %

Pending June 30, 1974 1,638 1,008 4 0

In Was both mail tax cases and other. ~ Amount Determined expressed as Percentage of

m, Disposals Include cases tried. settled, and of$ . Amount Assumed or Claimed. These amounts do not...d

. Some of the determined amounts are for cases include proposed assessments which are agreed to

which were subsequently appealed . by the taxpayer at District or Appellate Conferences.

Disposed of '

Recovery rate 4

Received 1,133 185,614

Disposed of 2 1,014 . 120,385 $43,26 3

Pending June 30, 1974 384 332,041

Recovery rate 1

35 .9%

Pending June 30, 1974 2,859 655,774

~ Cases in Courts of Apotal and the Supreme Court ~Arnoum shown as refunded Includes refund of are included under the columns representing the court taxes, Penalties . and Is. ... d InI . .. . 1. 11 do. . not a, flgin . include statutory Interest (interest accrued to date of rm-,Dmposals include cases tried, settled, and Me- refund and paid to taxpayer with round) . .ad - Amount Refunded expressed as percentage of Amount In Dispute .

40

Total

Pending July 1, 1973 2,740 $590.54 5

41

124 71,88 1

146 31,277 $20,235

64.7%
Trial Court Case Recor d

(Opinions Rendered-Refund Litigation and Tax Court Cases )

Court District

of Claims Courts

Small Tax

Cases Other Total

Action 1973 1974 2 1973 1974 3 1973 1974 4 1973 1974 5 1973 197 4

0 cided 1, favor o f

Govemme-Nulber 26 38 156 211 126 170 224 234 350 04

-P.,c.nt 68 .4% 80.9% 58 .0% 60.1% 52.5% 54,5% 49 .1% 61 .4% 50.3% 52.7 %

Decide In favor of

Taxpaye-Numbe _Percen,t

Decided .Yp: M tally for

the taxp r and

partially for the

Go-ment-Number

-percent

9 5 82 95 29 23 72 61 101 a,

23 .7% 10.6% 30.5% 27.1% 12.1% 7.4% 15 .8% 13.4% 14.5% 10.9 %

3 4 31 45 85 119 160 160 245 279

7.9% 8 .5% 11 .5% 12 .8% 35 .4% 38 .1% 35 .1% 35.2% 35 .2% 36.4 %

Total opinions 30 47 269 351 240 312 456 . 455 BOG 767

Related cases are reflected a one opinion . 5455 Tax Court Opinions involving 763 cases other

;47 Opinions in Court of Claims involving 64 cases. Ihninm 11 .1 1

351 Opinions In District Courts , involving 407 casea~

. c:

. "

on *1i,h cl.cl.itm, -r. entered during

312 To, Court Opinions invoving 337 mail t

. Ft... I Year .

cases.

Appellate Court Case Record

(Decisions=Refund Litigation and Tax Court cases )

Court

No . % No. % No.

Courts of Appeals 256 181 70.7% 63 24.6% 12 4.71/6

Originally tried inTax Court '135 96 71 .1% 33 24 .4% 6 4 .4%

District Courts ' 121 85 70.2% 30 24 .8% 6 5.M/.

Supreme Court

Originally tried inTax Court

Partly for

and Partl y

For the Against the Against the

Total Government Government Governmen t

4 3 75.0%

Tax Court25.0 %

3 2 66.7% - 1 33.3%

District Courts 1

Court of Claims

100.0%

General Litigatio n

Attorneys in the General Litigation area

furnish legal advice to the Internal

Revenue Service and the Department of

Justice on suits to collect taxes, proceedings under the Bankruptcy Act, civil

enforcement of summonses, and injunction and declaratory judgment suits.

During 1974, this Division handled suits

involving injunction and declaratory

judgment proceedings seeking to require

the Commissioner to recognize an exemption under § 501 (c)(3) or to revoke

exempt status, to revoke an outstanding

revenue ruling or regulation, and challenging enforcement actions such as

termination of the tax year and jeopardy

assessments .

Disclosure

The Disclosure Division was established

on April 1, 1974, to harfdle the increasing

volume of 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. These matters were formerly

handled by the General Litigation Division of the National Office .

Specifically, the Division is responsible

for planning, directing and coordinating

for the Internal Revenue Service al

I

matters relating to requests for testiReceipt and Disposal of

General Litigation CasesNational and Regiona l

Status Court

Pending July 1, 1973 6,386

Received 8,210

Disposed of 7,273

Pending June 30, 1974 7,323

mony 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

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 .

Non-Court Total

1,746 8,13 2

7,394 15,604

7,522 14.79 5

1,618 8,94 1

Courts of Appeal I Of th. .. ...

.lginlily tried in the Tax Court . the 101 the cases originally tried In District Courts, the

tendered 135 opinions in 222 dockets Courts of Appeal.

r,md.nadl 121 opinions in 141 dockincluding 1"

doclell for the govern ment, 11 partially ets, including 92 dockets for the government, 6 par.

42 rn lor the government, and 53 against the government . telly for the government, and 43 against the govern..ru

.

43
44

General Litigation and Disclosure Cases Received 1970-197

4

Types of Cases-Regions: 1970 1971 1972 1973 197

4

Bankruptcies and Receiverships 1,088 1,107 1,217 1,153 1,11

2

Wage Earners' Plans (CH. X111) 56 58 61 81 10

2

Arrangements (CH . XI) 1,321 1,855 1,492 1,526 2,27

3

Reorganizations and Real Property

Arrangements (CH. X and XII

)

Miscellaneous Insolvencies 5

4

Decedents' Estates 45

6

Suits to Collect Taxes 67

9

Section 2410

(28 U .S .C. 2410) Interpleader

s

Others

Injunctions

Disclosure and Testimony 24

8

Summons Cases 90

6

Erroneous Refund Suit

s

Miscellaneous Court Cases 50

0

145 271 203 184 34

8

73 199 140 10

0

438 424 423 41

3

604 624 608 62

3

174 206 226 24

2

92 159 235 16

2

so 131 152 230 27

2

297 411 449 481

1,083 1,307 1,371 1,66

3

so 28 32 3

1

527 513 593 53

0

Advisory Opinions 3,117 3,746 4,025 4,556 4,310

Discharges of Property from Liens 1,766 2,094 2,311 2,429 2,26

9

TOTAL, ALL REGIONS 10,418 12,600 13,332 14,236 14,93

1

NATIONAL OFFICE : 1970 1971 1972 1973 197

4

Appeals io

n

Advisory

136 176 216 184

164 162 142 132 14

0

International Operations 91 118 113 88 16

5

Disclosure and Testimony 19 29 54 212 15

8

Other Centralized Cases' 3 19 40 22

26

TOTAL, NATIONAL OFFICE 385 464 52S 670 67

3

TOTAL, ALL REGIONS AN

D

NATIONAL OFFICE 10,803 13,064 13,857 14,906 15,60

4

Includes Railroad Reonganicallons and Actions for Injunctions and/or Declaratory Rellef .

45

Criminal Tax

Attorneys in the Criminal Tax area

handle all criminal tax legal matters for

the Internal Revenue Service, coordinate

criminal tax prosecutions with the

Department of Justice, and assist th

e

Tax Court and Refund Litigation DIvIsions in coordinating the application of

the civil fraud penalties .

Criminal Tax Cases Received

1970-1974

1,680

2,385

1,313 1,10 0

1970 1971 1972 1973 1974

Receipt and Disposal of Criminal Tax Case

s

Status 1970 1971 1972 1973 197

4

Pending July 1, 1973 2,073 2,206 2,467 2,762 3,59

7

Received, Total 1,100 1,313 1,680 2,385 2,413

With Recommendation for Prosecution 1,014 1,204 1,523 2,304 2,304

With Requests for Opinioni Etc.

Disposed of, Tota l

Prosecution not Warrante

d

Dept. of Justice Decline

d

Prosecutions

Opinions Delivered

Other closings

86 109 157 81 109

967 1,052 1,385 1,550 2,115

96 79 94 104 181

50 48 57 72 91

623 759 1,009 1,077 1,423

38 46 58 4662

160 120 167 251 358

Pending June 30, 1974 2,206 2,467 2,762 3.597 3,89

5

NOTE : Some cases in .lud. ar- than one taxpayer

Results of Criminal Action in Tax Fraud Case

s

Action Number of Defendants

1970 1971 1972 1973 1974

Plea of guilty o r nolo contendere 448 645 733 914 1,06

2

Convicted after trial 73 142 113 190 19

1

Acquitted 30 57 40 55 9

7

No?-prossed or dismissed 77 153 151 112 . 11

5

Total disposals 628 997 1,037 1,271 1,46

S

Indictments& Informations 924 956 1,085 1,186 1,44

1

NOTE : A small numb., of -g.flag cases one in. Cluded. These account far I. .. than 5 per cant of total diflomullS .
46

Leading Decisions

Supreme Court Opinions

Injunction . In Bob Jones University v.

Simon, 416U .S . 725 (1974), and Alexand er v. "Americans United" Inc ., 416 U .S ' 752 (1974), the Court reaffirmed the

test of Enochs v. Williams Packing and

Navigation Co ., 370 U.S . 1 (1962), that

an injunction against the assessment or

collection of taxes may be granted only

(1) "if it is clear that under no circumstances could the Government ultimately

prevail" and (2) "if equity jurisdiction

otherwise exists," even when the taxpayer presents a constitutional claim,

and held that Code

§ 7421 (a) prohibited

the enjoining of the threatened revocation of a ruling letter relating to Code

§ 501 (c)(3) status in the Bob Jones case

as well as injunctive relief requiring the

reinstatement of such a letter in the

"Americans United" Inc . case.

Self-incrimination . In Bettis v. United

States, 417U .S . 85 (1974), the Court

held that the Fifth Amendment privilege

against self-incrimination did not justify

the refusal of a partner in a small law

firm to comply with a subpoena requiring production of the partnership's

financial records. The Court restated its

position that the privilege against

compulsory self-incrimination should be

limited to its historic function of protecting only the natural individual from

compulsory incrimination through his

own testimony or personal records, but

warned that "Iflhis might be a different

case if it involved a small family partnership, - - * , or - - - , if there were

some other preexisting relationship of

confidentiality among the partners . "

Research Expenditures. In Snow v .

Commissioner, 416

U.S . 500 (1974), the

Court held that the taxpayers were entitled to deduct their pro rata share of

amounts claimed by their partnership as

research and development expenditures

under Code§ 174 on an item not developed for sale in the year in question

on the grounds that disallowance of the

deduction was contrary to the broad

legislative objective of§ 174 to provide

an economic incentive to small or

growing businesses .

Bond Discount Amortization. The Court

in Commissioner v. National Alfalfa

Dehydrating& Milling Co., 417

U.S. 134

(1974), rev'g 472F .2d 796 (10th Cir .

1973), rev'g and rem'g 57 T .C

. 46 (1971),

held that no amortizable discount arises

when a corporation exchanges its bonds

for its preferred stock unless the corporation incurs, as a result of the

transaction, some cost or expense of

acquiring the use of capital. However ,

the Court left open the question of

whether any discount would arise if a

corporation exchanged its bonds in return for other property such as inventory

or the stock of another corporation.

Depreciation . In Commissioner v . Idaho

Power Co ., - U.S . -(1974), the

Court held that equipment depreciation

allocable to the taxpayer's self-construction of capital facilities could not be

deducted currently, but rather must be

capitalized under Code§ 263(a)(1) and

depreciated over the useful life of the

capital facilities. Although depreciation

is intended to allocate the expense of

using an asset over the periods benefited by that asset, when equipment is

used to construct another capital asset,

the equipment benefits the periods in

which 4he constructed capital asset will

be used, and the expense of using the

equipment-must be allocated over those

periods.

Liquidation-Nonrecognition Of Gain. In

Central Tablet Manufacturing Co. v .

United States,-U .S. - (1974), insured property was destroyed before the

adoption of a plan of complete liquidation ; however, fire insurance proceeds

were received after the adoption of the

plan . The Court held that the "sale or

exchange" for purposes of provisions

dealing with nonrecognition of gain in

connection with a plan of complete

liquidation took place when the fire

occurred, prior to the adoption of the

plan, thus clarifying the application of

Code§ 337(a) to casualties and

involuntary conversions .

47

Lower Court Opinions

Freedom Of Information. In Tax Analysts and Advocates v . Internal Revenue

Service, 362F. Supp . 1298 (D .D.C . 1973),

aft'd in part, 505 F .2d 350 (D .C . Cir.

1974), the plaintiffs sought to compel

public disclosure of certain letter rulings, technical advice memoranda, and

communications and indices relating

thereto. The Government contended that

.the information requested constituted tax

return information exempt from disclosure under the Freedom o! Information

Act and, in the alternative, urged the

court to exercise its equitable powers to

deny disclosure. The district court ruled

that the material sought did not constitute a return and could be rendered

anonymous, that disclosure would not

inhibit the Government in frankly discussing differing views in making policies and decisions, and therefore was

not exempt from disclosure. Also, it

ruled that it does not have discretion to

refuse to order disclosure once it has

been determined that the material is not

exempt.

On appeal, theD .C . Circuit upheld the

lower court's decision as to letter rulings,but reversed with respect to

technical advice memoranda, holding

that since such memoranda dealt directly with information contained in

"returns made with respect to taxes",

they were a part of the process by

which tax determinations were made . In

Fruehauf Corporation v . Internal Revenue Service, 369 F . Supp . 108 (E .D.

Mich . 1974), appeal docketed, No .

.47 -1474 (6th Cir . April 25, 1974), on the

other hand, where the plaintiffs sought

disclosure of certain private excise tax

ruling letters, the court failed to take

notice of the fact that Code § 6103 applied to certain excise taxes as well as

to income taxes, and ruled that the

material sought related to excise taxes

and did not fall within the protection of

privacy accorded material related to

income tax returns .

Third Party Summons. In Blsceglla v.

United States, 486

F.2d 706 (6th Cir.

1973), cert . granted April 15, 1974, the

court held that the Service is not authorized to issue a third party summons

to compel production of that party's

records except in furtherance of an investigation of the possible tax liability of

specified taxpayers. In a footnote, the

court rejected the Government's contention that the summons was authorized

under the canvassing statute, Code§

7601, stating that Congress did not intend for that section to provide "additional grounds" to those specified in

Code § 7602 for the issuance of a

summons. Similarly, the Fifth Circuit

affirmed the lower court's denial of

enforcement of the summons in United

States v . Humble Oil and Refining Co .,

488F . 2d 953 (5th Cir. 1974), holding that

the Service possesses no statutory authority for issuing a summons under

Code§ 17602 for "research" purposes .

However, in United States v . Berkowitz,

488 F . 2d 1235 (3d Cir. 1973), the Third

Circuit affirmed the district court's order

enforcing a summons seeking the

names, addresses and social security

numbers of the customers of a tax

preparation service. The court distinguish6d situations where the Service

sought documents to secure information

not otherwise in its control from this

case where the request was to secure

facts so that the Service could locate

information it already possessed .

Right to Counzel In Tax Investigations.

The Internal Revenue Service's instructions to special agents that Miranda-type warnings [Miranda v. Arizona, 384 U .S . 436 (1966)) are to be

given to the subject of an Intelligence

Division investigation at the time of the

initial contact were involved in three

reported cases . In United States v .

Brewer, 486F .2d 507 (10th Cir. 1973),

the defendant argued that in addition to

being advised of his right to be represented by counsel, he should have been

informed that he was entitled to have an

attorney appointed if he could not obtain
48

one. The court held that in the absence

of any coercive conditions and atmosphere, there was no right to appointed

counsel . In United States v. Morse, 491 F.2d 149 (1st Cir. 1974), the defendant

had not been given the warnings, but at

the time of the special agents' first

contact, the agents were referred to his

attorney, to whom they gave the Miranda-type advice . The court suggested

that, although it is preferable to give

taxpayers the required warnings personally, a per se rule of exclusion

should not be adopted for situations

when the broad policy purposes of the

Service's directives have been met. In

United States v . Fukushima, 373F. Supp .

212 (D . Hawaii 1974), the special agent

gave the Miranda-type warnings except

that the word "criminal" was omitted.

The warnings given referred to tax fraud

and to self-incrimination . The district

court denied suppression of evidence,

stating that "[tjhe failure on the part of

the special agent to use the magic word

'criminal' in stating the purpose of his

investigation is [not] a 'substantial'

deviation from the Internal Revenue

Service procedures * * *. "

Self-incrimination . The Ninth Circuit held

that a defendant's income tax return

showing income derived from wagering

could be introduced into evidence during

his criminal trial for federal gambling

violations in Garner v. United States, F.2d - (9th Cir. 1974) . The court noted

that, at the time of filing his return, Garner was not a defendant and that the information sought by the tax return was

neutral on its face since the questions

were directed to the public at large to

implement the lederal taxing power and

were not designed to produce incriminating answers.

Termination of Taxable Year. The Second Circuit affirmed the district court's

dismissal of the injunctive action

brought by the taxpayer in Laing v .

United States, 496 F . 2d 853 (2d Cir.

1974), cart. granted Oct . 15, 1974, and

adhered to its position that an assessment of tax liability made as a consequence of a termination of taxable year

is not a deficiency. The court noted the

contrary decision of the Sixth Circuit in

Rambo v . United States, 492F.2d 1060

(6th Cir. 1974), cart. applied for July 10,

1974, but declined to follow it . In Rambo

and in Hall v . United States, 493 F . 2d

1211 (6th Cir . 1974), cart. granted Oct.

15, 1974, the Sixth Circuit concluded

that the tax determined to be due for the

terminated period was a "deficiency" as

defined by Code § 6211 and that the

authority for assessing that deficiency

was contained in Code § 6861, entitled

"Jeopardy Assessment ." Since no deficiency notice had been issued by the

Service within the 60-day period provided by that section, the court held that

the taxpayer could seek an injunction

against the collection of the tax and an

invalidation of the prior seizure unde

r

the provisions of Code§ 6213(a) .

Estoppel . The Second Circuit in Divine v .

Commissioner, 500

F . 2d 1041 (2d Cir.

1974), rev'g in part 59 T.C. 152 (1972),

held that the Government was not collaterally estopped from relitigating the

same substantive tax issue by virtue of a

prior opinion by a different court of

appeals involving different taxpayers .

The court stated that, because the two

cases involved different taxpayers who

were not in privily, the prior judgment

did not collaterally estop the Government from relitigating the merits . The

court thus refused to extend the erosion

of the doctrine of mutuality of estoppel

to federal tax controversies.

Embezzlement Income . In Commissioner V. Buff, 496 F. 2d 847 (2d Cir . 1974),

rev'g 58 T .C . 224 (1972), the Second

Circuit reversed a reviewed decision of

the Tax Court which held that an embezzler did not receive income where he

executed a confession of judgment

within the same taxable year and

thereby altered the character of the

transaction from an embezzlement to a

loan. The Tax Court found in the execution of the confession of judgment a

"consensual agreement between the

petitioner and his employer to treat the

transaction as giving rise to a 'debt'

due ." In reversing, the Second Circuit 49

held that the confession of judgment did

not represent a bona fide agreement to

repay and should not be given tax significance.

Partnerships. In Diamond v . Commissioner, 492 F .2d 286 (7th Cir. 1974, aft'g

56 T .C . 530 (1971), the Seventh Circuit

held that a profit interest in a partnership received by the taxpayer in return

for services rendered to the other

partner was compensation taxable as

ordinary income at the time of receipt .

The court found it unnecessary to reach

the questions whether Diamond's partnership interest constituted property or

whether a partnership existed at the

time his services were rendered.

Sick Pay Exclusion-Disability Retirement . In Reardon v. United States, 491 F.2d 822 (10th Cir. 1974), the court invalidated Treas . Reg . § 1 .79-2(b)(3)(i)(a),

which provided that "retirement age" for

the purpose, among other things, of

determining whether payments received

under a disability retirement plan constitute excludable "sick pay" is the

minimum age at which an employee

could voluntarily retire under the employer's pension plan without disability .

Illegal Evidence . In Efrain T. Suarez, 61 T .C . B41 (1974), on appeal to the Fifth

Circuit, the Tax Court clarified

its prior holding in 58 T .C . 792 (1972),

that the taxpayer's showing that the

Commissioner's deficiency determination

was based exclusively upon records

obtained by local police officers from

the taxpayer in violation of his rights

under the Fourth Amendment was sufficient to shift to the Commissioner the

burden of going forward with the evidence . In that earlier opinion, the court

had also held that the criminal exclusionary rule was applicable to preclude

the introduction of any of such tainted

evidence in the trial of the Tax Court

case.

Office In Home. In StephenA. Bodzin, 60

T .C . 820 (1973), on appeal to the Fourth

Circuit, the Tax Court held that an employee was entitled to deduct, under

Code § 162, his expense of maintaining

an office in his home . The court, in a

reviewed opinion with four dissents, held

that the criterion of deductibility is

whether maintenance of the office at

home is appropriate and helpful to the

am ployee's job performance rather than

primarily for his personal convenience .

Attribution Of Fraudulent Intent . In

JamesD. Prudden, at a/ ., Docket No.

7032-73, the court held in a Memorandum Sur Order dated April 17, 1974, that

the fraud of a father, who prepared returns for his minor children, was imputable to them, finding this situation

analogous to cases where fraud has

been imputed to corporate taxpayers

arising out of acts done by officers of

the corporation and to estates for acts

done by fiduciaries of the estate .
I

60

Technkcal

The two technical divisions of the Office

of Chief Counsel-Interpretative and

Legislation and Regulations-are located

in the National Office .

Interpretative

The Interpretative Division serves as the

principal legal advisor to the Office of

Assistant Commissioner (Technical) and

formally or informally reviews proposed

revenue rulings prepared by that Office .

It also gives legal advice to other Divisions in the Chief Counsel's Office regarding the interpretations of the Internal Revenue .Code, cases, regulat'.)ns

and rulings. I

Ruling IV~ -itters

Limited Partner;hips . Because of the

widespread use of limited partnerships

in conjunction with tax shelter investments, the Interpretative Division handled a significant number of questions

involving subchapter K and the classification of various organizations. The

Division assisted in the preparation of

Rev. Proc. 74-17, 1974-22 I .R .B . 17,

which sets forth situations in which the

Service ordinarily will not issue advcaace

rulings concerning the classification of

an organization because of questions as

to whether the principal purpose of the

formation of the organization is the

reduction of federal taxes.

Interpretative Division Cases

Received 1970-1974

Type of Case 197

0

Revenue Rulings 168

Letter Rulings 43

Technical Advice 64

Other Advice 230

To Internal Revenue Service'

To other Chief Counsel DivisionsI

Total 50

5

I No b..kd .vn .1 "Othe, Advice" we ; ado tor

Fiscal Years 197D.1973.

Transfer To Controlled Corporation . The

Division assisted the Service in the

preparation of Rev. Rul . 73-472, 1973-2 C.B . 114, which holds that the nonrecognition provisinn of Code § 351 (a)

does not apply to the gain or loss reaiized by an individual who exchanged

property solely for debt securities in a

transaction in which he and three other

individuals each transferred property of

equal value to a newly formed corporation and in which the three other

transferees received all of the stock of

such corporation . In a companion case,

Rev . Rul . 73-473, 1973-2C .B . 115, it is

held that the nonrecognition provision of

Code § 351 (a) applies to a transaction in

which each of four equal owners of the

stock of an operating corporation

transfers property to such corporation in

exchange for its debt securities.

Consolidated Returns . The Division

considered several cases concerning

consolidated returns during 1974 . Among

them were Rev. Rul. 73-498, 1973-2

C.B.

316, which outlines whether a

corporation that qualifies both as a

Western Hemisphere Trade Corporation

and a possessions corporation is an

"includible corporation" within the

meaning of Code§ 1504(b)(4), and Rev .

Rul . 73-605, 1973-2C.B. 109, which

describes the tax consequences of an

agreement entered into by members of

an affiliated group that provided for a ;-

location of the consolidated tax liability

in accordance with Code§ 1552(a)(2) .

1971 1972 1973 1974

305 512 511 47 1

59 89 107 12

4

95 114 117 9

0

220 173 185 15

8

4

154

679 888 920 843

51

Exempt Organizations. Interpretative

Division attorneys participated in the

preparation of Rev . Rul . 74-99, 1974-9 I .R.B . 11, which sets forth specific requirements for exemption of a homeowners association under Code

§ 501 (c)(4), and in the preparation of Rev .

Rul . 74-17, 1974-2 I .R.B . 11, a somewhat

related ruling, whichholds that a condominium housing association formed to

provide for the management, maintenance and care of the common areas of

a condominium project does not qualify

for exemption under Code § 501 (c)(4) .

They also considered Rev . Rul . 73-411,

1973-2C.B . 180, which holds that a

mutual benefit association will not

qualify for exemption as a business

league or chamber of commerce under

Code§ 501(c)(6) if its membership is

restricted to and required of the tenants

and their common lessor.

Legislation and Regulations

This Legislation and Regulations Division

works with the Research Division of the

Office of the Assistant Commissioner

(Planning and Research) and the Commissioner's Office in representing 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

Legislation and Regulations

Division Cases Received

1970-1974

Type of Case 1970 1971 1972 1973 197

4

Legislation 61 24 76 46

77

Regulations Iss 99 Ito 90 6

6

Miscellaneous 21 22 19 38

43

Total 237 145 205 174 175

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 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 .

Tax Legislation Pending

The House Committee on Ways and

Means undertook an extensive study of

a wide variety of tax reform measures.

Members of the Division participated in

the preparation of draft legislation affecting, among other things, deductions

for business use of the home, medical

expenses, casualty losses, and expenses

arising from vacation homes. Legislation

was drafted to treat alimony payments

as a deduction toward adjusted gross

income, to repeat the dividend and sick

pay exclusions, to make use'of the tax

tables mandatory in certain cases, to

limit artificial accounting losses, to provide for declaratory judgments for Code § 501(c)(3) organizations and private

foundations, and to amend provisions

relating to contributions to candidates

for public office .

In addition, at the end of 1974, bills

were pending to liberalize the charitable

contribution treatment of copyrights,

artistic compositions, and certain letters

and memoranda ; to require preparers of

income tax returns to report certain

information to the Internal Revenue

Service and to prohibit preparation of

returns by a person convicted of preparing a fraudulent return ; to establish a

national health insurance program and

to impose an additional health insurance

tax on employers, employees, and

self-employed individuals ; to impose a

windfall profits tax on oil and to phase

out the allowance for depletion of oi l

and gas resources and to require

withholding of tax on amounts awarded

in state-conducted lotteries .
. Administratio

n

Tax Legislation Enacted

During 1974 Congress enacted several

laws related to tax matters, including the

following :

Public Law 93-53, enactedJ uly 1, 1973,

permitting income tax refund checks to

serve as interest-bearingU .S . Savings

Bonds and requiring the Presidential

Election Campaign Fund checkoff to

appear on the individual income tax

return .

Public Law 93-233, enacted December

31, 1973, increasing the social security

and self-employment tax earnings base

to $13,200 for 1974 .

One of the most significant tax bills

considered by the Congress during 1974

was H .R . 2, designed to strengthen and

improve the private retirement system .

The bill was enacted on September 2,

1974, as the Employee Retirement Income Security Act of 1974, P .L . 93-406 .

It made sweeping changes in the tax law

with respect to employee retirement

plans, establishing new uniform participation, vesting and funding standards .

The new law created a Pension Benefit

Guaranty Corporation to provide insurance against loss of retirement plan

benefits, gave the Labor Department

responsibility over certain aspects of

plan operation, and authorized the

creation of a new Assistant Commissioner's office to discharge the Service's

responsibilities with respect to employee

plans . -

Tax Treaties

During 1974, a proposed income tax

convention with Romania was transmitted to the Senate . Members of the

Division assisted the Treasury Department in negotiations for other income

tax conventions with Jamaica, Yugoslavia, Poland, and Zambia, and for

estate tax conventions with France and

Luxembourg .

Regulations

The Commissioner has the responsibility,

with the concurrence of the Assistant

Secretary of the Treasury for Tax Policy,

to prescribe regulations under the Internal Revenue Code . Tax regulations

are drafted by the Legislation and

Regulations Division .

During 1974, the Statement of Procedural

Rules that relate to comments on proposed regulations was changed to

provide that, in a comment, designations

of material as confidential will not be

accepted by the Internal Revenue

Service. The usual form for a notice of

proposed rule making was modified to

call attention to this provision and to

alert persons submitting written comments that they should not include

therein material that they consider to be

confidential or inappropriate for disclosure to the public .

Regulations prescribed during the year

included the following :

Treasury Decision 7292, relating to the

separate limitation on foreign tax credit

with respect to certain interest income .

Treasury Decision 7293, relating to the

imposition of tax on foreign corporations, to return requirements, and to

declarations of estimated income tax.

Treasury Decision 7294, relating to

foreign taxes on foreign mineral income.

Treasury Decision 7304, relating to the

designation by individuals to the Presidential Election Campaign Fund .

Treasury Decision 7308, relating to the

postponement of the presumption with

respect to activities not engaged in for

profit .

Treasury Decision 7310, relating to the

disclosure and use of information by

preparers of tax returns .

Treasury Decision 7313, relating to the 53

52 revocation of permission for inspection

of income tax returns by the Department

of Agriculture .

Treasury Decision 7315, relating to the

depreciation allowance for certain public

utility property .

Notices Of Proposed Rule Making

Some of the more important notices of

proposed rule making issued during the

year but still pending at the end of the

year are those relating to : (1) treatment

of income subject to foreign community

property laws ; (2) relief of innocent

spouses from liability for certain omissions of income on joint returns ; (3)

procedures for administration of private

foundation excise taxes ; and (4) valuation of certain bonds for estate and gift

tax purposes.

General Legal Cases-Received

1970-1974

597

445

149

225

168

1970 1971 1972 1973 1974

Operations and Planning"

The Operations and Planning Division is

responsible for the management of the

Office of the Chief Counsel and for

providing general legal services to Internal Revenue Service officials in all

matters not primarily concerned with

taxation, including labor relations, tort

claims, forfeitures, procurement of

supplies and services, and general administration .

During 1974, Operations and Planning

began testing a computerized legal research system, LEXIS, to determine the

effectiveness of such a system for use

by attorneys in the office.

Under the aegis of the Division, an

Equal Employment Opportunity Advisory

Committee, composed of representatives

from each Division in the National Office,

was established in 1974 to assist in the

administration of the Chief Counsel's

Equal Employment Opportunity Program .

It has played an important role in assisting management to devise and

implement an Affirmative Action Program .

Attorneys in the General Legal Branch

of the Division represent the Service in

labor cases, including representation

hearings, unfair labor practices, and

grievances, and served this past year as

counsel to management teams negotiating multi-unit labor agreements. Other

members of the Operations and Planning

Division's legal staff represent the

Service in adverse action proceedings

and in hearings involving allegations of

discrimination . These attorneys also

render on-going advice concerning

gl~vernment contracts and various administrative law problems . In addition,

they represented the Director of Practice, Office of the Secretary of the

Treasury, in disciplinary actions brought

against tax practitioners.

'On July 21, 1974 . the Openallons and Planning Divlltion was abolished and replaced by an Assistant Chief

Counsel, the General Legal services Division and the

Adrnini .tratIve services D1,1trion .
Planning and

Research

• Planning Activities

• Research and Testing

• Legislative Activities

• Federal-State Cooperation

• Statistical Activities

• Advisory Groups
56

Planning Activities

Modernization of the Service's automatic

data processing systems and simplification of the tax laws highlighted the

planning activities of 1974 . Long-range

planning of personnel and other resource requirements to meet foreseeable

workloads of the next several years,

statistical analysis of tax return

data, and other research work also were

major activities in the planning area

during the year.

Tax Administration System

The Tax Systems Redesign Division was

established in the latter part of 1973 to

undertake a major redesign of IRS data

processing systems. A new data processing concept-the Tax Administration

Systm-is being developed to improve

service to the public, including the

processing of tax returns and the retrieval of information related to those

returns.

The new system will enable the IRS to

issue refunds and bills faster, to respond

to inquiries from taxpayers about their

accounts more rapidly and to automate

additional compliance operations which

can be handled efficiently by computer . A major aim of the Tax Administration

System is to make information contained

in the master file of taxpayers' accounts

promptly accessible for use by specifically authorized personnel. This aim will

be accomplished by decentralizing to

the 10 IRS Service Centers the master

files now maintained at the National

Computer Center in Martinsburg, W . Va.

Under the new system, the National

Computer Center will control messages

between the Service Centers and maintain a directory of each Service Center's

records so that an account is not kept

on file at more than one Service Center.

Long-Range Planning

The Long-Range Plan consists of a basic

statement of goals and planned work

accomplishments for the next five years .

It includes projections of the nature and

size of the tax administration job ahead

and the programs needed to meet

Service objectives and an attempt to

estimate how many people, how much

money, and what equipment will be

needed to do the tax administration job

in the future .

In this context, the Service has made a

concerted effort to integrate a Management by Objectives process with

planning and budgeting activities. Past

performance is systematically and periodically revised and assessed against

stated objectives . Important budget issues and the need for changes in program emphasis are also examined

during this review .

57

Research and Testing

Optical Character

Recognition

The Service is examining the possibility

of procuring Optical Character Recognition (OCR) equipment to convert to

magnetic tape the data recorded on

information returns (reports of payments

of wages, dividends, interest, etc .) received in paper form . Recent technological advances indicate the probability

that OCR may be more economical than

the alternative of manual transcription .

Remittance Processing

System (RPS)

Successful tests were made of 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 system will reduce

processing costs, accelerate remittance

posting to account status and tax data

bases, and provide a "fact of filing"

indicator for account status operations . A pilot system to include all remittance

processing activity within one Service

Center is planned for early 1976 .

Technical Reference

Information System

Testing continued on a Tp.chnical Reference Information System to explore

the feasibility of applying computer

techniques to the legal research problems of the IRS. Under the control of a

large-scale computer and a sophisticated information storage and retrieval

program, the researcher searches the

available data bases for material relevant to his tax issues using interactive

video terminals and hard copy printers .

The data base presently contains the

current Internal Revenue Code and

Regulations, Revenue Rulings since

1954, and selected tax cases from the

various courts .

Computer Simulation Model

The Service is developing a simulation

model of Service Center return processing operations to determine the

feasibility of computerizing work plans

and schedules . Projections of future

work plans and schedules will be made

through access to an on-line data base

containing actual and historical performance data . In addition, actual performance may be compared with

scheduled activity to permit rapid

schedule revisions because of changes

in filing patterns, changes in production

rates, and workload leveling to balance

the peak work force . The model will

permit more efficient use of personnel,

space, and equipment and will result in

reduced operating costs.
58

Legislative Activities

Tax Reform

Th a Service assisted the Office of the

Secretary in preparing a number of

legislative proposals for simplifying the

Code and tax forms . Close liaison has

been maintained with the tax-writing

committees of the Congress in the

conduct of both hearings and drafting

sessions as major tax reform legislation

moves forward .

Pension Reform

In anticipation of enactment of thenpending pension reform legislation, in

1974 the Service began planning the

structure of the new Office of Assistant

Commissioner (Employee Plans and

Exempt Organizations) mandated by the

legislation .

Rights to Privacy, and

Confidentiality of Tax

Returns

The rights of individuals to privacy, the

rights of individuals to know what kinds

of files are maintained on them by

government agencies, Lind their rights to

obtain information about agency procedures were all subjects of Congressional consideration during the past

year. The Service assisted Congressional

committees and the President's Domestic Council Committee on the Right

of Privacy in their deliberations on these

important issues.

Single Wage Reporting

System

The Service is working with the Department of Health, Education, and

Welfare toward a system designed to

eliminate the present requirement that

employers file quarterly reports of

wages. This revolutionary approach

employs the annual Form W-2, Wage

and Tax Statement, to determine social

security program coverage and benefits

and provide information for tax enforcement. Legislative proposals to implement the new system are pending in

both the House and Senate. This legislation would substantially redvce the

wage-reporting burden borne by employers as well as the volume of required reports which are handled by the

Service and the Social Security Administration .

59

Federal-State

Cooperation

Exchange of Tax

Information

Formal agreements providing for reciprocal exchange of tax information

between the Service and the states

currently exist with 48 states, the District

of Columbia, Puerto Rico, Guam, and

American Samoa . Three-fourths of these

agreements now conform with a model

plan which reflects recent changes in

Federal and State tax administration

regulations and procedures .

Revenue authorities in 37 states, the

District of Columbia, and Puerto Rico

requested and received magnetic tapes

containing standard data elements which

were extracted from the Individual

Master File for tax year 1972 . The tax

laws specifically authorize the furnishing

of this information to the states to aid

thernin improving compliance with state

tax laws . States which receive this information must undertake to protect

taxpayers' rights of pri vacy.

At the request of the National Association of Tax Administrators, the

Service provided a preliminary set of

standards for a Business Master File

extract program, patterned after the

program used for the IMF.

Gift tax information is also available to

the states on magnetic tape .

Federal Collection of

State Income Taxes

Although no states have yet sought

Federal assistance in the collection of

their taxes under the Federal-State Tax

Collection Act of 1972, the Service has

begun preparing for requests under the

Act by initiating preparatory procedures

for the redesign of-some IRS systems,

the modification of tax returns and instructions, and changes in regulations,

and is developing a handbook for

governors, state legislators, and other

state officials .

Aid to State Tax

Authorities

Under the Intergovernmental Personnel

Act, IRS advisors have helped state tax

administrators improve their programs

and have contributed to increased cooperation between the IRS and state tax

authorities . This year, the IRS assisted

the states of Florida, Illinois, and Rhode

Island and the Commonwealth of Puerto

Rico .

In 1974, the IRS provided 63 training

spaces in Basic Revenue Agent and

other Compliance classes and ADP

courses for state employees involved in

tax administration . The IRS also conducted courses in managerial and supervisory skills, taxpayer education, and

taxpayer relations for state agencies at

their training facilities.
Statistical Activities

Statistics of Income

Highlights

The Statistics of income reports provide

the public and 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 .

Statistics of Income reports published in

1974 covered corporation income tax

returns for 1971 and individual income

tax returns for 1972. These reports

are issued annually.

Also in 1974, after an interval of some

years, the IRS published a Statistics of

Income report on fiduciary income

tax returns and a supplemental report

on personal wealth. The report on

fiduciaries covered tax year 1970 . The

wealth report presents estimates of

overall personal wealth projected from

information about decedents contained in

estate tax returns filed in 1970.

Statistics of Income publications can be

obtained from the Superintendent of

Documents, U .S . Government Printing

Office, Washington, D .C . 20402 .

Tax Model s

Originally 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. Four basic models,

representing the returns of individuals,

corporations, proprietorships, and

partnerships, 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

indiv idual returns, the Service developed, in connection with the FederalState Tax Collection Act of 1972, a

special individual model set, "State Tax

Models ." These models are designe d

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 270,000 returns for 1972)

instead of the subsample of about

100,000 returns used for the basi c

model .

Returns-Filed Projections

Planning throughout the Service is

based on projections of the number of

returns to be filed . The planning requirements of the various units of the

Service require that workload projections be prepared for the entire United

States as well as for service center

areas, regions and districts . Specialized

projections are also made for research

purposes. The projections are updated

each year to incorporate changes in the

economic and demographic outlook, as

well as the effects of tax law changes

and filing patterns. Statistical techniques

are used to identify the relationships

between tax returns filed and the economic and demographic changes .

The total returns-filed workload is expected to grow from 118 .7 million in

calendar year 1973 to 146 .9 million in

1985, an increase of 23 .8 percent, reflecling expected growth in economic

activity and employment over the next

decade. The trend toward more complex

returns also is expected to continue

during this period . Individual returns

with higher adjusted gross income (AGI

over $10,000), as well as corporation,

fiduciary, estate, gift, and exempt organization returns, are expected to increase more than 35 percent .

Projections of some major categories of

returns are shown in the following table .

Selected Types of Returns Filed in 1973, and Projected for 1974,

1975,1980 and 1985 by Calendar Year (Based on Present Law)

(Thousands)

Type of Retur n

Total Returns

Individua l

Form 1040 A

Form 104 0

AGI under $10,00 0

AGI $10 .000 and over

Other Individual

Fiduciary

Partnershi p

Corporation

Actual Estimated Projected Percent

Change

1973 1974 1975 1980 1985 1973-1985

118,701 121,950 124,176 135,842 146,896 23. 8

78.601 81,504 83,300 93,261 101,502 29. 1

22,161 22,309 22 .229 21,503 20,607 - 7.0

56,320 59,073 60,946 71,619 80,744 43.4

28,837 28,269 27,788 24,562 - 21,808 -24 .4

. 27,483 30,804 33,158 47,057 58,936 114. 5

120 122 125 139 151 25.8

1,381 1,470 1,572 2,154 2,813 103. 7

1,077 1,092 1,105 1,168 1,233 14 .5

1,997 2,017 2,068 2 .392 2,709 35. 7

Forms 1120, 1120 Special .total 1,658 1,666 1,697 1,923 2,142 29. 2

Assets under $50,00 0

Assets $50,000 under $1 million

Assets $1 million or more

Other Corporation I

Employmen t

Estate and Gift

Exempt Organizatio n

Excise

Other '

725 723 734 819 904 24. 7

815 822 839 954 1,068 31. 0

118 121 124 150 170 44. 1

339 351 371 469 567 67. 3

24,471 24,733 24,889 25,440 26,229 7. 2

454 479 506 . 661 844 85. 9

1,336 1,437 1,483 1,752 2,042 52.8

964 845 840 364 340 -64.7

8,420 8,373 8,413 8,650 9,184 9 . 1

i Includes Forms 1120S. 1120X, and 1120 DISC

~ Includes Forms 7. 8, 11, 118. 11C, 4705 . 4706,

4707, 4708. 104CES . 7004 . 7005 . 243a end 1042.

60 61
62

Advisory Groups

The Commissioner's Advisory Group was

reinstituted when the Commissioner

appointed 12 prominent accountants,

attorneys and educators to serve as his

Advisory Group during the year. The

Group held three two-day meetings

during the fiscal year and a fourth

meeting in the fall of 1974. It provided

the Commissioner with useful criticism

and viewpoints on IRS operations so

that the Service could do a better job of

serving the American public . Members of

the group serve without compensation .

Art Advisory Pane l

Since 1968, a 12-member panel of art

experts-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 six years of operation, the panel

has reviewed more than $116 million

worth of art and has recommended

valuation adjustments of nearly $31

million . At the three meetings held

during 1974, the panel reviewed works

of art valued in tax returns at approximately $33 million and recommended

substantial adjustments in approximately

one-half of the cases.

Economic

Stabilization

and Energy

• Stabilization and IRS • Energy Activities
Stabilization and IR

S

The Internal Revenue Service played a

key role in the administration and at)-

forcement of the Economic Stabilization

Program from Phase I beginning in

August 1971 through Phase IV ending in

June 1974.

On August 13, 1973, Phase IV of the

Stabilization Program was established

and the Service's responsibilities were

changed and broadened . The Service

was given responsibility to receive and

process price increase requests, review

quarterly profit margin reports, issue

subpoenas for witnesses and books, and

collect and compromise civil penalties

for violations . The Service was also

authorized to perform additional technical and analytical tasks formerly reserved to the Cost of Living Council .

During Phase IV, the Service processed

over 10,000 price increase prenotifications from 814 major firms, completing

action on some 8,900 of these cases and

transferring the remainder to the Cost of

Living Council . The IRS gave full or

partial approval to $9 .8 billion in price

increases and denied nearly $1 billion in

requests . Another $900 million in price

increases were withdrawn, after the IRS

questioned their justification . As a result

of Phase IV investigations, $33 million in

overcharges were refunded directly to

consumers or to the marketplace in the

form of reduced prices . In addition, the

IRS issued remedial orders and penalties totaling nearly $47 million .

The gradual decontrol of the econorny

on an inclustry-by-industry basis was an

integral part of the Cost of Living

Council's Phase IV Program . At CLC's

request, the Service established a

modified industry monitoring system and

conducted some 1,400 survey-type investigations of plastics, rubber, chemicals, lumber, fabricated metal, paper,

fertilizer and textile firms in an effort to

monitor price behavior and ascertain

what allocation or supply problems

existed in these key industries prior to

decontrol .

The IRS conducted a total of 8,400 investigations to determine compliance

with the Phase IV Economic Stabilization

regulatiohs before the Stabilization Act

expired on April 30 . The Service then

focused its efforts on completing investigations initiated before April 30 and

accepting and processing required filings of quarterly and annual reports .

The IRS Stabilization function ceased to

exist on June 30, and Stabilization

personnel were phased back into tax

administration .

64 65

Energy Activitie

s

During the latter part of 1973, when the

energy shortage became critical, the

Federal Energy Office (FED) was created

to oversee energy-related problems .

Since petroleum firms were subject to

Phase IV Economic Stabilization wage

and price controls, and the IRS already

had employees experienced in conducting petroleum investigations, the

Service was called upon to continue

enforcing energy controls until FEO

could assume this responsibility. A

Memorandum of Understanding between

the FED Administrator and the Commissioner defined the roles of the FEO

and IRS and set forth the Service's

authority to carry out its responsibilities .

The agreement provided that the Service

would supply 300 field enforcement

personnel for FEO . As new FEO investigators were permanently assigned, the

300 IRS investigators would be returned

to Stabilization work.

From February through April 1974, the

IRS recruited, hired, and trained 860

new employees to form a field enforcement staff for FEO . Although thes e

new employees were on the FEO's rolls

at all times, the Service had direct

control and supervision over them until

FEO assumed the responsibility for

direction and control of energy activities

on July1 . Between December 1973 and

the end Of June 1974, the Service'

s

goal was to enforce energy regulations

for the FEO and to enable the FED to

assume the enforcement responsibility.

During this period, the IRS initiated

approximately 64,000 investigations,

primarily involving retail gasoline, diesel

fuel, home heating oil and propane

dealers . Some 15,000 violations were

found, and over $25 million was refunded either to specific customers or to

the marketplace .

Inquiries from the public reached a peak

of 63,000 calls pe r week in February

1974, when the nationwide gasoline

shortage was most severe . Although

these calls flooded many District Office

telephone lines during the tax filing

season, inquiries were handled without

significant detriment to tax assistance .

The Service also instituted a Refiner

Audit and Review Program, which

measured the compliance of major refiners with the price regulations . This

program terminated with completion of

the first review on May 31, 1974 . The

review identified substantial amounts of

improper cost pass-throughs. The information was turned over to FEO

for resolution .
Internal

Management

-of IRS

9 Maintaining IRS Integrity

* Management and

Administration
Maintaining IRS

Integrity

Internal audit and security programs of

the inspection Service help IRS managers maintain high levels of integrity

and efficiency .

Internal Audit Activities

The Internal Audit Division independently

reviews all phases of IRS activities to

ensure that policies, practices, procedures, and controls at all levels adequately protect taxpayers and the revenue and that they are efficiently and

effectively carried out . Various auditing

techniques, including computer analyses,

are used to detect operating problems

and integrity breakdowns .

Savings and Improvements

Management actions resulting from internal audit reports have helped improve

taxpayer service, increase operating

efficiency, strengthen internal controls,

and foster a climate of integrity within

the Service . Although monetary measurement is frequently not possible,

identifiable savings and additional revenue resulting from Internal Audit activities in 197.4 were estimated to exceed

$71 million . This amount includes $36

million from examination of an elaborate

Florida land development tax avoidance

scheme which was investigated as a

result of information developed by IRS

internal auditors.

Corrective actions on some findings do

not result in actual savings or additional

revenue but instead accelerate the assessment or collection of taxes, For

example, internal audit tests disclosed

that taxpayer delinquent accounts were

being issued under routine rather than

immediate procedures when dishonored

checks were posted to previously fully

paid accounts . Subsequent computer

program changes will accelerate the

collection of an estimated $37 million in

delinquent taxes annually.

Fraud, Embezzlement or Misconduct

One of the basic purposes of the Internal Audit program is to detect fraud,

embezzlement, or other malfeasance on

the part of IRS employees or others.

Special integrity reviews during FY 1974

resulted in the detection of fraudulent

and erroneous refunds totaling $938,000 .

These reviews were also a major facto r

in the referral to Internal Security of

information indicating breaches of integrity by 459 employees and others.

By-products of these special reviews

include reduction of revenue losses due

to earlier detection of fraud, a deterrent

effect on those contemplating improper

actions, and identification of operational

problems.

Internal Security

Activities

Internal Security Inspectors conduct

background investigations of job applicants and investigate complaints of

misconduct or irregularities concerning

employees . In addition, they investigate

persons outside the Service who attempt

to bribe or otherwise corrupt Service

employees and who threaten or assault

employees.

During 1974, Internal Security Division

Inspectors arrested or were responsible

for the indictment of 102 individuals,

including 13 employees or former employees and 89 taxpayers, tax practitioners or others . A total of 92 defendants were convicted during the year,

including 62 defendants-two-thirdswho pleaded guilty rather than go to trial.

Forty-five of these convictions were for

bribery, 23 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 informs68 69

tion .

Bribery Attempts

Last year, IRS employees continued to

thwart those persons who challenged the

integrity of the Service through attempted bribery . In 1974, 207 employees

reported 220 possible bribery attempts,

resulting in 36 arrests or indictments .

During the 13-year period that the IRS

Inspection Service has had the responsibility for the bribery program, IRS

employees have reported 1,409 bribery

attempts. Approximately one of every

four instances resulted in prosecution

action . Since 1961, bribery investigations

have'resulted in 381 arrests or indictments and 289 convictions or guilty

pleas . At the end of 1974, 29 persons

were awaiting trial on bribery charges .

The following cases illustrate bribery

attempts during 1974 :

A New Jersey CPA and his client

pleaded guilty to briber~ and conspiracy

after paying a revenue agent $3,500 for

a favorable audit . The judge fined the

accountant $20,000, ordered his license

revoked, and ordered him not to prepare

tax returns for clients in the future . The

client was given a two-year suspended

sentence and fined $20,000.

Two Las Vegas casino operators and a

businessman were arrested after making

bribery payments totaling $64,000 to

improperly influence civil and criminal

tax investigations.

Four Honolulu jade importers and gold

jewelry dealers were indicted following

their attempt to bribe a revenue agent

with a total of $6,300 and a Customs

agent with a total of $3,300 to overlook

or reduce their tax liabilities.

A gasoline station owner in New York

was indicted for paying a revenue agent

$600 to overlook his illegal gasoline

price increases during the energy crisis .

A Michigan motel owner was arrested

after paying a revenue agent $1,000 for

a no-change report in an attempt to

avoid approximately $5,000 in taxes .

An Illinois hardware store owner was

sentenced to two years probation and

fined $10,000 for giving a revenue agent

a color television set to reduce proposed tax adjustments .

Assaults and Threats on

IRS Employee s

Since March 1972, when it was assigned

the responsibility for the Assault Program, Inspection has investigated 900

cases in this area. Prosecution was

authorized in 83 cases and 38 of these

resulted in convictions. During 1974, 472

investigations were initiated, and 21

persons were convicted . In instances

where prosecution is not authorized,

Inspection interviews the alleged assailant, with the approval of the U.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:

A Steubenville, Ohio, trucker pleaded

guilty to pointing a rifle at two revenue

officers who attempted to seize his

brother's property for unpaid taxes .

A Detroit, Michigan, known drug trafficker was sentenced to six months

imprisonment for threatening a revenue

agent. While he was awaiting trial on

this Federal charge, the subject, his wife

and their two sons were arrested for

illegal drug sales to local undercover

officers.

An Allentown, Pennsylvania, Certified

Public Accountant was arrested for

assaulting a revenue officer who was

attempting to get information about a

client's 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 three years, ten individuals identified with organized crime

were indicted on bribery and conspiracy

charges . To date, five of these individuals have been convicted, two were

acquitted, and three persons are awaiting trial . Two home builders were

convicted in 1974 as a result of this

investigation .

Other Criminal Prosecutions

Other criminal activities involving the

Service which the Internal Security Division was responsible for prosecuting

this year were the following : A former Memphis Service Center

cash clerk and her husband were sentenced to jail terms of 59 days and

three years, respectively, for embezzlement of more than $8,000 in Government

funds. A Kansas City, Missouri, file clerk

pleaded guilty to selling confidential tax

information to two private detectives .

The two detectives also pleaded guilty in

the case . A former California revenue officer and a

junk dealer were each fined $2,000 and

placed on three years probation after

pleading guilty to illegally acquiring

property seized from delinquent taxpayers.

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 employee .

The Internal Security Division completed

21,322 investigations during the year . In

addition . singular and multiple police

record searches were conducted on

20,020 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

329 job applicants and in disciplinary

actions such as separations, suspensions, reprimands, warnings or demotion

against 1,479 employees.

The chart on the next page shows the

types of investigations completed during

the past two fiscal years and disposition

of those cases .

Investigative Teamwork

Breaches of integrity are investigated

jointly by Internal Audit and Internal

Security and in some cases with the

assistance of the IRS Intelligence Division . In one case investigated in 1974,

an employee pleaded guilty to conspiring to defraud the Government after

the discovery of a scheme involving

$250,000 in fraudulent refunds . Another

of these investigations resulted in the

identification and arrest of a person

outside the Service who attempted to

obtain $520,000 in fraudulent refunds .

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 71 such referrals, 16 of which concerned tax practitioners in one metropolitan area who had prepared tax

returns showing patterns of exaggerated

and fictitious deductions .

Internal Security Division Investigations, 1973 and 197

4

Type of Investigations and Action

Tota l

Personnel investigations

Number of cases closed, total

Character and security investigations

Conduct Investigations

Special Inquiries

Actions taken by Service management officials

as a result of Personnel Investigations

Rejected for Employment

Disciplinary actions, total

Separations, total1

Bribery, extortion or collusion

Embezzlement or theft of Government funds or propert

y

Failure of employee to pay proper la

x

Falsification or distortion of Government reports, records, etc .

Unauthorized outside activity

Failure to discharge duties properly

Divulgence of confidential information

Acceptance of fees or gratuities

Refusal to cooperate in official investigation

Personal and other misconduct

Suspension from duty and pay

Reprimands, warnings or demotions

Investigations completed with favorable results

(include clearance and closed without action letters on

conduct investigations)

Other Investigations

Number of cases closed, tota l

Assault

Disclosure

Applications for admission to practice before the IRS

Charges against Attorneys, CPA's and Enrollees

Federal Tort Claims

Bribery

Discrimination

Investigations for other Treasury Bureaus

1973 1974

19,654 21,32

2

15,193 17,901

11,672 13,823

1,0341 .367

2,487 2,71 1

246

M0

2357

26

915 1 0423 8 6

35

329

1,479

331236 6

1173

1022

12

4

115

568 1,03

3

14,109 16,093

4,461 3,421

411

58

1,237

74

150

1730

472

103

1,207

74

144

2150

2,358 1,206

1, .~ Include. resignations, retirements gr other !opera- ma,y action where investigation disclosed derogatory he while employees were under Jn'tlaugation or information .

before administrative decision was made on dlsclPli70

71
Management and

Administration

Efficiency Improvement

The IRS initiated a Reports Curtailment

Project in 1974 to reduce reporting requirements and to improve remaining

reports . As a result of this program, 308

reports were cancelled at a projected

annual savings of almost $2.4 million. In

addition, 17 reports relating to stabilization activities were cancelled at a

projected annual savings of almost $1 .9

million . The Service's continuing program of promoting efficiency is expected

to produce further improvements and

cost savings during the second half of

calendar year 1974.

Records disposal during calendar year'

1973 resulted in the release of space

and equipment valued at $1,654,000 . A

total of 137,151 cubic feel of records

was destroyed, and 275,373 cubic feet of

records were retired to Federal Records

Centers.

IRS efforts to provide appealing office

space for taxpayer service areas at

reasonable cost were assisted during

1974 by the implementation of the GSA

Office Excellence Program .

Safety Programs

During calendar year 1973, the last year

of the President's "Zero In On Federal

Safety" campaign, the accident prevention efforts of the Service resulted in

a frequency of only 2 .0 disabling amployee injuries per million man-hours

worked . This is the second lowest rate

in Service history and about 70 percent

lower than the average rate for all

Federal agencies .

Service personnel drove over 112.5

million miles on official business during

1974 with only 691 accidents . This

amounts to approximately 6 .1 accidents

per million miles driven, the lowest rate

on record .

Management Careers

Progra m

The IRS Management Careers Program

has achieved an increasing degree of

acceptance among management and

employees . This program was expanded

in 1974 by the Assistant Commissioner

(ACTS) to include the identification,

selection and development of first and

second level managers in IRS Service

Centers and the Data Center.

Executive Personne l

The Service was faced with the problem

of filling a substantial number of executive vacancies which occurred late in

1973 and in 1974. Forty-three employees

were trained in two six-month Executive

Selection and Development Program

classes this year. Usually only 10 to 15

employees participate each year . Nine

classes Were conducted for middle

managers, the main source of candidates for executive positions.

For more than three years, the IRS has

been faced with a severe drain on its

pool of top-level career executives as a

result of the statutory $36,000 civil

service salary limit. The combination of

this limit and recent substantial costof-living annuity increases has created a

painful economic dilemma for executives

eligible for optional retirement, since by

remaining in the Service they must

forego the substantial increases in retirement benefits which would be

available if they . retired . During 1974, a

total of 27 supergrade career employees

retired, including 5 of the 7 IRS Regional

Commissioners . A second effect of this

salary limitation is the resulting salary

compression which places significant

numbers of middle level executives and

technical specialists at the same salary

level as the Service's top executives .

If in the future the IRS is to avoid even

more severe managerial strains, it is

72 73

necessary that this limit be removed .

Labor-Management

Activities

In early May, the IRS concluded a

two-year collective bargaining agreement

with the National Treasury Employees

Union (NTEU) . This Multi-District

Agreement covers 30,000 employees in

56 of the 58 districts throughout the

country . The Agreement provides for

bilateral union-management decisionmaking in personnel policies and

practices, such as promotions and

performance evaluations .

The IRS and NTEU also concluded an

agreement covering about 2,500 ampioyees in four of the seven regional

offices . This two-year collective bargaining agreement is the first to cover

more than one regional office . Taken

together, the Multi-Regional Agreement,

the Multi-District Agreement and an

agreement covering most of the Service

Centers include about 60,000 IRS employees.

Training

IRS Training Centers trained a record

number of recruits this year, including

approximately 3,000 Revenue Agents,

2,000 Tax Auditors, and 296 Special

Agents .

Tax Practitioners Institutes were held for

new tax return preparers and for experienced practitioners needing refresher training . A course entitled Fundamentals of Tax Preparation was

conducted at over 600 schools this year

for college-level students interested in

the tax preparation profession .

The Service has revised and expanded

two training courses for use in its

compute r-assisted audit training program

in order to reduce or eliminate many of

the problems encountered with computer

audits . A short training program in basic

ADP concepts was given to 600 agents

this year . The second program, designed

for a small number of specialists, trained

41 Computer Audit Specialists in 1974 to

carry out a high-quality auditing program

involving ADP accounting records . A

total of 84 Computer Audit Specialists

have been trained under this program,

and additional agents are scheduled for

training in 1975 .

Over 660 investigators were trained in

enforcement, compliance and other

regulatory procedures established by the

new Federal Energy Act. Training

courses began in February ; by June all

had successfully completed the prescribed training and were transferred to

the Federal Energy Office. Eighty-eight

investigators received further training in

the Refinery Audit and Review Program

(RARP) . This training course was

designed to help the investigators apply

energy regulations in the audit o f

large refineries.

Equal Employment

Opportunit y

The Service has moved steadily to increase emphasis on equal employment

opportunity and to insure upward mobility opportunities for all employees .

While total Service year-end employment

increased by nearly 10 percent between

1973 and 1974, minority employment

during the same period increased by 16

percent . This included a 27 percent increase in employment of Spanishspeaking Americans .
74

During the year, a woman was appointed

Deputy Assistant Commissioner and two

black executives were advanced to the

top field position of Regional Commissioner.

Under the cooperative work-study

p

rogram, the IRS employed 1,038 students,

248 of whom were employed full-time

after completing the program.

Employment of the

Handicapped

IRS has continued to increase its employment of the handicapped in all occupations . As of December 31, 1973,

1,631 handicapped persons were employed by the IRS . Of this number,

94 are blind individuals working as Taxpayer Service Representatives in IRS

Districts and as Tax Examiners in the

Service Centers .

In each of the past three years, an IRS

employee has reached final competition

for the Outstanding Handicapped Federal Employee of the Year Award. This

award, made under the auspices of the

Civil Service Commission, focuses attention on the valuable contributions of

handicapped Federal employees and

their ability to perform top-quality work.

This year, Mrs . Icy Deans, a Tax Examiner at the Kansas City Service

Center, received the Outstanding

Handicapped Federal Employee of the

Year Award .

Protection of Facilities

During the past year, the IRS continued

to strengthen the protection of its data

processing facilities by implementing an

incentive-based guard contract . This new

concept was developed with the assistance of the General Services Administration to provide the guard contractor

with the motivation to do a superior

job . In most cases, this type of contract

has resulted in a significant improvement in the quality of guard service,

thereby increasing the overall protection

of the IRS facilities.

Federal Handicapped Award presentation (L to R) .

Commissioner Alexander; Mrs . Icy

D. Deans ;

Senator Robert BJ. Dole of Kansas; and Mrs . Jayne

. Spain, Vice-Chairman of the Civil Service

Commission,

Appendix

*IRS Functional Chart

• Map of Regions and Districts • List of IRS Officials (1974) • Commissioners of the IRS

(1862-1974)

• Statistical Tables • Index
I

I--

1: r.

-I--

L!~~

Z:=

0

Regional Boundary

District Boundary

.. . .. . .. . .. .~*'. :--' - - -----

1

I

I

I=

=-- I I

. .. . ... ... ... . .. . . .. ... ... . .. . . .. . .. . . ... ... .. ...; R~ i-11 C-mi--

Regional Commissioner

District Director

Commissioner of

Internal Re,renuo

(Washington, D.C.,

0 District Director

E Ser~jce Cente r

... . . . .. . ... . .. ... .. . . .. . ... ... . . .. ..1,; ---

0 National Computer Center

(Martinsburg, W .Va .)

IRS Data Center

(Detroit, Mich .)
78

Principal Officers of

the Internal Revenue

Service as of June 30,

1974

NATIONAL OFFICE

office of the commissioner

Commissione r Donald C . Alexander

Deputy commissioner

WilliamE. Williams

Assistant to the commissioner

Burke W. Willsey

Assistant to the Deputy Commissioner

John L . Wedick, Jr. (Acting)

Director, Tax Administration Advisory

Staff

Gordon Hill (Acting ) Assistant to the Commissioner

(public Affairs)

Philip L. Rothchild

Administration

Assistant Commissioner

Joseph T. Davis (Acting)

Director, Programs Staff

Julius H . Lauderdale

Division'Directors :

Facilities Management

LeoC . Inglesby

Fiscal Management

AlanA. Beek

Personne l

BillyJ . Brown

Training

RichardC . McCullough

Deputy Equal Employment Opportunity

Officer

BarbaraR . Thompson

Compliance

Assistant Commissioner

John F. Hanlon

Deputy Assistant Commissioner

HaroldA . McGuffi

n

Division Directors :

Appellate

JamesC . Stigamire

Intelligence

JohnJ . Olszewskl

Audit

S . B . Wolfe

Office of International Operations

JosephG . McGowan

Accounts, Collection and Taxpayer

service

Assistant Commissioner

Robert Terry

Deputy Assistant Commissioner

John Weber (Acting)

Division Directors :

Collection

James 1 . Owens

Taxpayer Service

Stanley Goldberg

National Computer Center, Martinsburg, W.Va.

WilliamE . Palmer

Accounts and Data Processing

Vacant

IRS Data Center, Detroit, Mich .

LeonardE. Semrick

Inspection

Assistant Commissioner

Francis 1 . Geibel

Division Directors :

Internal Audit

WilliamC. Rankin

Internal Security

WilliamJ . Hulihan

Planning and Research

Assistant Commissioner

DeanJ . Barro

n

Division Directors:

Planning and Analysis

Anita Alpern

Systems Development

LancelotN . Armstrong

Tax Systems Redesign

DonaldG . Elsberry

Research

Claude0 . Baldwin

Statistics

Vito Natrella

Internal Management Documents

Jeremiah R . Thompson .

Technical

Assistant Commissioner

LawrenceG . Gibbs

Deputy Assistant Commissioner

Wade F . Hobbs (Acting)

Division Directors :

Income Tax

Aaron Feibel (Acting)

Miscellaneous and Special Provision

Tax

S. A. Winborne (Acting)

Tax Forms and Publications

RoyJ . Linger 79

Office of Chief Counsel

Chief Counse l

Meade Whitaker

Deputy Chief Counsel

Charles L . Saunders

Technical Advisor to Chief Counsel

DanielS. Folzenloge

n

Staff Assistant to Chief Counsel

RichardA. Fisher

Associate Chief Counsel (Litigation)

RobertA . Bridges

Associate Chief Counsel (Technical)

Richard M . Hahn

Technical Assistant to the

Associate Chief Counsel

DavidE . Dickinso

n

Special Assistant to the Chief Counsel

Lester Stein

Special Assistant to the Chief Counse l

Vacant

Division Directors :

General Litigation

Walter Feigenbaum

Criminal Tax

LeonG . Wigrizer

Refund Litigation

John W . Holt

Tax Court Litigation

DennisJ . Fox

Disclosure

Harold T . Flanagan

Interpretative

John L . Withers

Legislation and Regulations

James F . Dring

Operations and Planning

JamesE . Markham, Jr.

REGIONAL AND DISTRICT

OFFICERS

Central Region

All Regional Offices at 550 Main Street,

Cincinnati, Ohio 45202, unless a different

address is indicated

Regional commissioner

Patrick Ruttle (Acting ) Assistant Regional Commissioners : Administratio n

ArthurJ . Collinson

Audit

Robert Schemenauer (Acting)

Accounts, Collection& Taxpayer

Service

Stanley L. Baker

Appellate W. Franklin Hammack

Intelligence

Harold B. Holt

District Directors : Cincinnati, Ohio 54201

DonaldE . Bergherm (Acting)

Cleveland, Ohio 44199

Robert

J . Dath

Detroit, Mich . 48226

Roger L . Plate

Indianapolis, Ind .

James W. Caldwell

Louisville, Ky . 40202

Paul F . Niederecker

Parkersburg, W . Va .

JackD . Taylor (Acting)

Director, Cincinnati Service Center,

Covington, Ky . 41019

PatrickJ . Ruttle

Regional Counsel

DavidE . Mills

Regional Inspector

John McManus (Acting)

Mid-Atlantic Regio

n

All Regional Offices at 2 Penn Center

Plaza, Philadelphia, Pa. 19102, unless a

different address is indicate

d

Regional Commissioner

WilliamD . Waters

Assistant Regional Commissioners:

Administration Americo P. Attorri

Audit

Dwight L . James
80

Accounts, Collection& Taxpayer

Service

Paul R . Dickey

Appellate

Reuben Saideman

Intelligence

ThomasJ . Clancy

District Directors :

Baltimore, Md . 21201

GeraldG . Portney

Newark,N .J . 07102

Elmer H . Klinsman

Philadelphia, Pa . 19108

Alfred L. Whinston

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 Offices at 275 Peachtree St. N .E., Atlanta, Ga . 30303, unless a

different address is indicated

Regional Commissioner

Roland H . Nash, Jr .

Assistant Regional Commissioners :

Administration

PhilipN. Sansotta

Audit

PhilipJ . Sullivan

Accounts, Collection& Taxpayer

Service

WilliamE . Douglas

Appellate

Kenneth F . Montz

Intelligence

EdmundJ. Vitkus

District Directors:

Atlanta, Ga. 30303

John W. Henderson

Birmingham, Ala . 35203

Dwight T . Baptist

Jacksonville, Fla 32202

AndrewJ . O'Donnell, Jr.

Greensboro,N .C. 27401

Charles0 . Dewitt

Jackson, Miss . 39202

William Daniel

Nashville, Tenn . 37203

JamesA. O'Hara

Columbia,S.C. 29201

Harold Bindsei l

Director, Atlanta Service Center,

Chamblee, Ga . 30006

William B. Heritage

Director, Memphis Service Center,

Memphis, Tenn. 38110

ClaudeA. Kyle

Regional Counsel

HenryC. Stockell, Jr.

Regional Inspector

John Kelly (Acting)

Southwest Region

All Regional Offices at 1114 Commerce

St., Dallas Tex. 75202, unless a differen

address is indicated

Regional Commissioner

Walter T. Coppinger

Assistant Regional Commissioners :

Administration

Vacant

Audit

HowardC . Longley

Accounts, Collection,&

Taxpayer Service

George M . Oliver

Appellate

PaulD . Williams

Intelligence

RobertD . Elledge

District Directors:

Albuquerque,N. Mex . 87101

William B. Orr

Austin, Tex. 78701

PilchardJ. Staken

Little Rock, Ark. 72203

EmmettE. Cook, Jr.

New Orleans, La. 70130

Roger F. Shockcor

Denver, Colo . 80202

Gerald L . Mlhlbachler

Cheyenne, Wyo. 82001 T. Blair Evan s

Dallas, Tex . 75202

Alden W . McCartless

Oklahoma City, Okla . 73102

Clyde L. Bickerstaff

Wichita, Kans . 67202

MauriceE . Johnson

81

Director, Austin Service Center, Austin,

Tex . 78740

Ervin B. Osborn

Regional Counsel

William B . Riley

Regional Inspector

Paul F . Kearns

Midwest Region

All Regional Offices at 35 East Wacker,

Dr., Chicago, Ill . 60601, unless a different

address is indicate

d

Regional Commissioner

Edwin P. Trainor

Assistant Regional Commissioners :

Administration

Charles Parks

Audit

John H . Rauen, Jr .

Accounts, Collection& Taxpayer

Service

Roger

C . Beck

Appellate

FredJ. Ochs

Intelligence

RobertJ . Bush

District Directors :

Aberdeen,S . Dak. 57401

John B.Langer

Chicago, Ill . 60602

Charles F. Miran i

Des Moines, Iowa 50309

James T. Rideoutte

Fargo,N . Dak. 58102

FrederickG. Kniskern

Springfield, Ill . 62704

LeonC. Green

Milwaukee, Wis . 53202

Lawrence M . Phillips

Omaha, Neb. 68102

Everett Loury

St . Louis, Mo . 63101

RichardC. Voskuil

St . Paul, Minn . 55101 C. Dudley Switze r

Director, Kansas City Service Center,

Kansas City, Mo . 6417

0

RoyD. Clark

Regional Counsel

Frank

C . Conley

Regional Inspector

WilliamE. Mulroy

North-Atlantic Region

All Regional Offices 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

TheodoreC. Rademaker

Intelligence

Howard F . McHenry

District Directors :

Albany, N .Y . 12206

Donald T. Hartley

Augusta, Maine 04330

Whitney L . Wheeler

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

Carolyn Bultolph

Hartford, Conn . 06103

JosephJ . Conley, Jr.

Manhattan, N.Y. 10007

Philip Coates

Portsmouth,N .H . 03801

Frank W . Murphy

Director, Andover Service Center,

Andover, Mass . 01802

M . Eddie Heironimus

Director, Brookhaven Service Center,

Holtsville, N.Y . 11742

Henry P. Seufert

Regional Counsel

MarvinE . Hagen

Regional Inspector

Sidney Wolk
Historical Lis

t

of Commissioners

of Internal Revenue

82

Western Regio

n

All Regional Offices at 870 Market

Street, San Francisco, Calif . 94102,

unless a different address is indicated

Regional Commissione

r

Thomas Cardoz

a

Assistant Regional Commissioners :

Administration

Warren

N. Slack

Audit

Johnnie Robertson

Accounts, Collection& Taxpayer

Service

Vacant

Appellate

WallaceJ. Spencer, Jr .

Intelligence

RobertG . Potter

District Directors :

Anchorage, Alaska 99501

CharlesE . Roddy

Boise, Idaho 83707

Howard T . Martin

Helena, Mont . 59601

Nelson L. Seeley

Honolulu, Hawaii 96813

Robert M . Cutt

s

Los Angeles, Calif . 90012

WarrenA . Bates

Seattle, Wash. 98112

MichaelD . Sassi

Phoenix, Ariz . 85025

Robert M . McKeever

Portland, Ore . 97204

Ralph B. Short

Reno, Nev . 89502

Gerald Swanson

Salt Lake City, Utah 84110

Roland V. Wise

San Francisco, Calif . 94102

Francis L. Browit

t

Director, Ogden Service Center, Ogden,

Utah 84405

John0 . Hummel

Director, Fresno Service Center, Fresno,

Calif . 93730

Fredric F . Perdue

Regional Counsel

Emory L . Langdon

Regional Inspector

Frederick R . Rowe, Jr.

GeorgeS. Boutwell

Massachusetts

July 17, 1862/Mar . 4, 1863

JosephJ. Lewis

Pennsylvania

Mar. 18, 1863/June 30, 1865

William Orton

New York

July 1, 1865/Ocl . 31, 1865

EdwardA. Rollins

New Hampshire

Nov. 1, 1865/Mar . 10, 1869

Columbus Delano

Ohio

Mar. 11, 1869/Oct . 31, 1870

Alfred Pleasonton

New York

Jan . 3, 1871/Aug . 8, 1871

John W . Douglass

Pennsylvania

Aug . 9, 1871 / May 14, 1875

Daniel ID. Pratt

Indiana

May 15, 1875/July 31, 1876

Green B . Raum

Illinois

Aug . 2, 1876/Apr. 30, 1883

Walter Evans

Kentucky

May 21, 1883/Mar . 19, 1885

JosephS . Miller

West Virginia

March 20, 1885/Mar. 20, 1889

John W . Mason

West Virginia

Mar. 21, 1889/Apr . 18,1893

JosephS . Miller

West Virginia

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

Illinois

Nov. 27, 1896/Dec . 31, 1897

NathanB . 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 83

JohnG . Capers

South Carolina

June 5, 1907/Aug . 31, 1909

RoyalE . Calbel l

Virginia

Sept. 1, 1909/Apr . 27, 1913

William H . Osborn

North Carolina

Apr. 28, 1913/Sept . 25, 1917

DanielC . Roper

South Carolina

Sept. 26, 1917/Mar. 31, 1920

William M . Williams

Alabama

Apr. 1, 1920/Apr . 11, 1921

David H . Blair

North Carolina

May 27, 1921 /May 31, 1929

Robert H. Lucas

Kentucky

June 1, 1929/Aug . 15, 1930

David Burnet

Ohio

Aug . 20, 1930/May 18, 1933

GuyT . Helevering

Kansas

June 6, 1933/Oct. 8, 1943

RobertE. Hannegan

Missour i

Oct. 9, 1943/Jan . 22, 1944

JosephD. Nunan, Jr

.

New York

Mar. 1, 1944/June 30, 1947

George

J. Schoeneman

Rhode Island

July 1, 1947/July 31, 1951

John

B. Dunlap

Texas

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

Virginia

Feb. 4, 1953/Oct . 31, 1955

RussellC . Harrington

Rhode island

Dec . 5,1955/Sept . 30,1958

Dana Latham

California

Nov . 5, 1958/Jan . 20, 1961

Mortimer M. Caplin

Virginia

Feb . 7,1961/July 10, 1964

Sheldon

S . 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

Donald

C . Alexander

Ohio

May 25, 1973

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 : Henry

C .

Rogers, of Pennsylvania, from May

1 to

May 10, 1883, and from May

I to June 4,

1907 ; JohnJ . Knox, of Minnesota from May 11 to May 20, 1883 ; Robert Wil- liams, Jr., of Ohio, from Nov . 28 to Dec .

19, 1900 ; Millard F. West, of Kentucky,

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

Mires, of Washington, from Aug . 16 to Aug. 19, 1930 ; Pressly R . Baldridge, of

Iowa, from May 16 to June 5, 1933 ; Harold N . Graves, of Ilinois, from Jan . 23 to Feb . 29, 1944 ; John S . Graham, of

North Carolina, from Nov. 19, 1952, to Jan 19, 1953; Justin F . Winkle, of New York, from Jan . 20 to Feb . 3, 1953 ; 0 . Gordon Delk, of Virginia, from Nov . 1 to

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

1958 ; Charles 1 . Fox, of Utah, from Jan .

21 to Feb. 6, 1961 ; Bertrand M . Harding, of Texas, from July 11, 1964 to Jan. 24, 1965 ; William H . Smith of Virginia ,

from Jan. 21 to Mar. 31, 1969 ; Harold T . Swartz of Indiana, from June 23, 1971 to

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

California from May1 to May 25, 1973.
Statistical

Tables
Table I .-Internal revenue collections by sources and by internal revenue regions, distncts, States, and other areas

(In thousands of dollars)

Internal revenue r.glims. districts, Total

States, and other nreas~ (States

I

ntennal

,represented n I, raby single districts n anndi-tird p.

thenall; total. collections

far other State' shown at bot ft,m of .

table)

11 )

Unit d States, total ------------ 268 .952 .254

North-Atianti, Region ---------------- 52 .529,707

Albany

-------- (Sao (c)

below) ----- 2 .734 .134

August Boston - ------- _ (Maine) ------------ 664.226

(Massachusetts)

----

7 .214 .413

Brmklyn-: : :: : :

( (c, 1

:.01 _ _

B .ff .f - ------- (S: : I

.) wi __: : : 1 :0 3 782

b : 4 3801 ' Burlington ----- Iva rmcmu ---------- S ,. 1 M:71 '

Hartford

. ... . .

(Connecticut) ------- 5

.697,1 53

Manhattan ____ IS - (c) b11111 ~ : ::: 21.650. 1 4

Portsmouth ---- I= H

.m)

.hi,. 174,8075

Providence ---- (Rhode Island) ------ 1.129.02 3

Mid-Atlantic Region ------------------ 39 .291,443

Baltimore ----- (Maryland and D .C.)-- 7,281,472

Newark P-, ~1*w Jersey) 1 .,30.700

p h" do'

43 769

Pittsburgh ----- SS 6 .:: ~ :~ ~b: :.w) . . . . .

:1451 :382

Ri,chmond I ~Vir inia )

- ::

:- ---------- 4 .495.147

W mington - Del"ware) --------- 1.633,974

Southeast Region -------------------- 26.602,19 1

Atlanta ,-:: : fl-gil), - 4.610.889

Bir ingh Alabama 237 975

Col=bia ------ (South Carolina) ---- 1:760:028

Greensboro ---- (North Carolina) ---- 5.816.36 8

n,,,,,-::

: M 1.043 .945

J .1son ~Flixlissippi) ------- .,id.) 1 :7,11:111

Nash,il a ------ (Tenness 32 2

03 7

Central Region ---------------------- 41,523,150

Cincinnati ----- (Sea (d) b: :.wiv~ : : :: : 15.621 .527

Cleveland ----- (See (d) b 0241 .075

Detroit h ion)

. . ..

. . . . .

is ) .. . . 14 :743.44 4

India rid n. . 6,473 ----- .880

Louisville ------ (Kentucky) --------- 3,507.728

Pa 'kersburg --- (West Virginia) ------ 935,496

Midwest Region --- ----- ----- ------

(South

-

Dakota- I -------

42.23'

Aberdeen 4 04: 229

Ch

c'go _

: : ::: : (See (b) below) 17 .0413,9934'

Des Moines ---- (Iowa) ------------- 2,433, 1 98

Fargo h Dakota) ----- 407019

OMilwl,w ..h . ;.;. :. :.:. :. :. "' ~Wixccuux ir) -------- 4 .994:1477

N braska) --------- 1.79720

St. Louis ------ (M issourl) ---------- 6.938:044

St. Paul ------- ( M innesota) -------- 5

. .

78,454

Springfield ---- (See (b) below) ----- 3035,730

Southwest Region - ----------------- 27:376,264

AlbuQuerque --- iiiew Mexico) ------- 642247

Austin -------- (Sao (f) below) ------ 7,227: 266

Cheyenne ----- (Wyoming) --------- 279013

Dallas -------- (See (f) below) 6.117:157

Denver -------- (Colorado) :: : :: : 4

.

2, 2

.99

6

lift

""k ------- 1 .148,7031

New O.. .n;-:: : --------- 2,628.3 7

Oklahoma City--(Oklahoma) --------- 2.678,282

Wichita ------- (Kansas) ----------- 2.241.484

West ., R*gIon=,,, 16,194:882

Anchorage --

;~; ;

292248

a I Idaho) ------------ 692783

Honolulu ------ Hi w,l

.

Los Angeles :: :- Sae0(n1.))b*I1w

Phoenix ___ -(An r

Portland ------ (Oregon) ---

Reno ---------- (Nevada )

So It Lake City --(Utah) -------------

San Francisco --(Sea (a) below) -----

.Seattle 11tishinglon) .. of -------

no *net Operations ------

Puerto Rico

_ _

Othe - -------

Until tributed :

44

'

:"3

.40.

011

9

14t : 714 7 77

19:744

2.533.619

642.355

786.71 3

10.811,574

3.682,159

1 .136.96 6

3 6235

7850:73 2

Federal To, deposits - -------------- 798,825

Ga oline lubricating oil and excess

Car-,..

tio.

Income Total

to, 2

(2)

Individual Income and employment taxes

Intome

income e

x

tax not withheld tApernoly

. withheld and Railroad inuint

and . .H. ld. .ge adia, .n,.,.

employ- and memt

. ..a

fasmerit disability

insbr.

an . I

(3) (4) IS

41,744,444 204,997.282

10,429,217 39,022 .590

365 .213 2,318 .205

73 .443 563,781

1,050 .928 5,700.69 7

464,450 4,199,138

747 :7361 3,4038:21,11

37 9 3 26 3

9 11 .251 4 , 227,338

6. ~08 . 572 16 '884 12

88 .212 547112

174 .448

9

.8 "8 9

5,6215 .87 2 30,287,210

:194 6,010.028

1 .891 .961 7 782847

1,261 .899 7:405:37 9

736,524 4,890,809

469,106 3 .217 1 4

582,8111 981

:001

3.7 3 3 113 :1576:1 '7

60808 :298 5 59 3426

308 :086 1 '71

:

475

27 779 1 :432 856

862,979 3,507 1 .234

42,398 855,632

957 24B 6 .222,375

46

1

:615 2,569,15 0

6:11 :141 341 :116:1337

1005 523

2 .2

6 2

1,559,48B 7,752. 877

2.429 .300 1 474,50 3

1

: 16

751,775 5 0:294

422,323 1,727878

123 .139 768,35 2

7,206.83B 31,982,008

44

.221

'348:1

3,126,714 1279 93

2

67 1

419 .046 1,914

35 .520 352 852: 397

-939 .833 3,687.758

'229 306 1426,34 1

1 129 :64 B 5 :204,527

803,180 4,052 .905

479,369 2,202.364

3,696,352 20

59,410 '916 55821 : 759

1,053 .356 5,112,34 4

30,923 214,208

936,354 4,772.098

307 :034 3,620.365

167 247 908.888

360736 2

4

1 2 1 :138.519

6:91 1.829:477

364,380 76403 9

4,559,762 2912 1 1

19 .593 26'5: '126

111 19 565,873 4 5

:52 379,606

96, 80 14 714,927

1 .844,332

11 .

244.041

200,269 1

:

462,414

498,164 1 928 103

85,796 527:361

1' .9219 : ~8 73 1 671 :014

9

. .5

5584 5

475.364 2.945.201

98,410 900939

1069 270.7

1

97341 630,22 : 18

(6) 7)

33,820.060 166,198,655 1 .507.993 2A.0 -74

4,905.556 33 .749,941 7Z402 294,79 1

196,153 2,101,619 5.175 15.257

118.430 434,266 6.317 4.767

868,890 4.779,810 779 132

840,020 33098 5 17" 633 3 1 : :620"

470:299 2:911 :933 2D7 ?6.516

57495 203,243 350 22.165

769,896 3 :427,509 38 89

1.362 .900 15 359 .197 33,752 12'9:0 '

1 9 :W

1

2541 440,530 2 4149

0 14 781,868 14 8 7

4,442.900 25,128,969 08 273 2117058

3 , 0 :

2 666

770 .217 5 177 639 6 :10 4 5 5 5.0 9 7

1 .320,729 7040 23 7 56:636

1,065,142

537 50

6,264 :351 21,443 1:443

':469 4315818 15 37 7

62 366 2 :493 :664 74,096 24111

123,978 850.229

:794

4,534 443 15,27 .0" 71.556 113017

622 :843 2,11407.811 3 .83 as.

82f

364,151 1148 782 1.804 16,73 9

263.153 1,15'5484 : 1 67 140 2

513:155 2,877,776 1,236 34.:76

25

2

1 '86 1 5 8 594 .774 396 7875

. 617 4 :251 :700 62 .725 46,332

576 .636 1967684 1 390 23,441

3,955,117 26,817,330

105

:242 208,848

612 :367 3.557 .001 1 01 33,163

821 756 6,841 .913 37,642 51.566

1,160 .162 10 .216069 20,724

7

7,54 9

769,203 4,361 :690 2 0 27 3 9

406 .133 1,264,062 44 :26923 1 2:9 1

185,497 576,595 79 6,181

5.194,257 26,193 .073 360,889 23317

1 135,495 2 10 .407 2 2:82"

.597.046 10,91 115 178,664 1')0 45

638,468 1 .2625 1 72 6 9

141,425 209 : 1 1' .281 4 2.690

1

43

528616 3,129 .671 1,010 28:460

355 :050 9883 8 74 .474 1.419

728,744 4 . 3 3 8:5' " 100 .290 36

. 9' .

511 .625 3.512.073 1,263 27,943

557.787 1,626,033 4,454 1409 0

4,r6l

'71 15,967,893 138,

102 1 44:893

128 :487 424 .39 1

1,201 .650 3.866.013 37 5S 6 .821 3 49 '94:8

78 .651 134 .160 5 1,392

1.172 .226 3

.

544040 19 .669 3 1 63

40 877 298 16,307 ' 3,179 : 15:88~

29-1 :464 608,806 755 7,163

472,620 1 .64B.151

1

. 618 1 6 1 30

418,738 1,396079 170 14 49t

493,157 1,166:954 92 .709 12 :21 8

5,371~'05 .339 23,412 :113 244 5 .1 5 2,1 Da1 :4

3 4 2 27 ------------- '4 5

128 .393 432 .203 606 4672

137,034 239,664 393 2:5 16

132 .216 577 7 8 ------------- 4192

S

1 .912 .567 9. 245:823 621 B5.030

310,017 1,140,764 266 11,357

424,854 1 .4 16736 1.309 1 5

1 25060 3s :20'

.

:O 1 1 4 258

114 :9 1 9 550, 299 110.322 ":,457 4

1 .474471 6,915.720 903 54

1

5 71 :756 2 .223,247 130,534 19,664

124 426 763,538 4.061 8,914

13 .203 249,010 -11 8,509

111,223 514,528 4,072 405

105,614 651,871 ------------- 649,509 2.514 -15 1

FICA credits' ------------------ 653,958 26,807

Tna

...

.

. ad 1, Government Of Guam -13,41 2 Withheld far..

of Federal employeens 192,459

Cl .

in..l.i.h8 -,""1 for .. fuel EIis I.-

and I t-Air Force an

Presidential Election Fund Navy ------ ------------------- - ----------

627,151 627,151 -----

- 3,412 -------------

192,459 ------------- 192,459 -------------

27 .;921 -------------------- -------------

Totals for States not shown above

fta' Is, 1,11lomia 24,951 Illinois _ _ : :: : :: : .346

2 :079,664

~,,) New d ."i. Yori .. ..------- 306'83~ . . . . ..

:.39

. 1 5 862602

~e) P nasyl-nia ---- 2 5.5 77 .1 51

f) T:

.

---------- 13,515 .222

2 .937,311 11I :7911 a' 1 :1 5 3:3517 :03B l(i I 1 '2:161 .142 "4 . 1,525 111 :7 1

3,606.084 49 03 2 1 483 542:1641 1,583119 935

8,086.003 26,811,210 2.SG9.372 23,682 15 6:767 202 .456

2 :561:0121 '5.509 1 .434 .123 10,398.914 37.744 8472

11 .1914 .9. to3 10 96111 1,602,610 10 12~' 2 .5 169 00 21 .458 91 950

9 7 .84 :442 2,373,877 7.4,01 53: 26,490 74,022

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

Internal revenue 1.91-, districts

States. and other . . .. . i (State .

represented by single districts

indicated in parentheses; totals far other States shown at bot .

tom of table)

E-le.

ta...

tota l

Estate Gift

I

..

. of

tax tax columns

11 .26,30 ,

31

5 5

(8) (9) (10)

United States, total ------------ 4,659,82

Nofth-Atlantic Region ---------------- 948,345

Alban~ -------- (Sea (c) below) ----- 38,199

Augusta ------- (Maine) ------------ 15.6

12

B's 2

ton --------(Massachusetts) ---- 130,822

Brooklyn (I~S:.~ ~)) bb ::.w) ----- 219.444

But,

., .

_ow)_--- : : 94 .214

Bu~11,ngton ----- (Vermont)

. . . . .

. 6.

349

He Ord

------ (Connecticut) ------- 142,432

Manhattan ---- (See (.) below) ----- 259.009

Portsmouth ---- (New Hampshire) ---- 14 54

P vidence ---- (Rhode Island) ------

2

7

:318

1 Mid7ti Be Itimor .ntic Region ------------------ 'B5,044

N __, : ::: : 1M1wYj'11d.Y1nd D.C .) : : 10'.149

*-or'

N . . _ 1 63

.387

Phil .d.1,hi. ---(See (a) below)-:--: :-:: 1661 :31

RP!ftsburgh : ::--(Sec, (a) below) 3089

,i,c,hmond __ (Virginia) 75,715a

S .V.111inglon .

---- O.I.w .r.) 12,345

.at Region -------------------- 592,97 1

Atlanta ------- (Georgia) ---------- 82,578

Birmingham ~Ahib,")'OC _ : --- 42,295

Columbia

So In C. ~~T

Greensboro (Noah Carolina)

23 .203

Jacksonvlll~ ~Mississippi) Jackson 74,890 ------- 20.180

Florida) ----------- 290,823

Nashville ------ (Tennessee) -------- 59. 003

liric'.4nagli * " ---------

1543,409

Cetr*

Cleveland : : ::: ~SS": ~d b ow~

:_ : : : 07929

Detroit

-------

. . . . 1 0.

:338

Indianapolis

--------- 133,1312

L ..i.vill .

----------

141.359

~Kent .c

ky)

:: : ::: 39' 722

Parkersburg West Virginla~ 20.24S

Mid,:

:S,t Region ---------------------- 709,918

neen __ 111"Ih laknla) 1:933

Chicago (So

. (b) be, .

.)--: :- : 225229

"aor Maine' . . . .:: :: ~=h j I - -~ --------- 14,626

,n ---

: : :: : 61,13g Milwaukee ----- (Wi.,.nsa )"'I

Omaha --- 7

.895

St. Louis

__ : ::: INebl.ska) --------- 39,902

St. Paul ------- ~'M!nn". .t.-)

Springfield ---- (See (b) below) ----- 57.595

Southwest Region -------------------- 47"646

111b" .ittl er,"e Mexico) ~ : ::: : : I ~ 446

A i

n

.he, S

:

. 136:978

,rienre ----- (1111.ming) --------- 6,710

Def - -------- (See (f) below) ------ 122,328

D .nve- -------- (Colorado) 42 .756 Little Rock ----- (Arkansas)

New Orleans --- (Louisiana) 16,756

antim.)

"

:611

Oklahoma Cill--(Okl 43

" .

,i,h it

.

------

(Kansas) ----------- 45.79 6

...hum Region --------------------- 789,018

Anchorage ::: :: ~Al:hko) 451

----- (Id 8:1 0 7

Honolulu

. .. . .. M .ntain .) --------- 13. 0 15

Los Angeles Hawai

I ----------- 11 .263

Phoenix (Ti"..~n

.a) )below2 ----- 349 .214

S

Portland ------ (Oregon)

. . .. .

Reno 313.378 :47'

--------- (Nevada) ---------- 16 .99 87 2

Salt Lake City -- (Utah) ---- 6:603 San Francisco -- (Sea ( .) beIWW)---: :: 24

6

4

Seattle -------- (Washington) ------- 57.

64

a

Office of International Openiff.. . ... . .. 14,470

Puerto Rico ----------------------- 539

U Other

nd sbrib~i;,T. ------------------------ 13,931

440.949 17109853

97,709 2:031:842

1 .425

1 .228 , I 10:1063,

1 14 3 " 6 1

:~1.3 2

2:914~ 93 2

6,919 112 .92 2

909 2 .734

13 .735 395,396

46,694 950,91 6

476 23 .611

1,339 17,265

63,209 2.726 .479

.10.615 464.487

'16,905 448,599

16973 586.159

6:835 448.126

4,093 729.085

7 .788 50.02 2

54,503 2,198,256

8 .886 303,792

3 .981 145,138

At. hot t. .. a

Distilled spirits taxe s

Inn .

parted

Total Total

(Col. Recti . to

acted Dames.

-p

tic

fi .

.,

I a; Other

Cby tion Gone

(13) (14) (15) (16) (17)

51358,477 3

.9 1 '

767.3R4 3 .115,OE16 24434 658,488

670 1

5 1 MN't 259,287 247,660 1 1"iS7

2,813 2.697 - : : :: : :: ---

5 2 166,125 90,26 1

"0'

It 74 .654 764

53 7 7,261 : : : :: . .

. 6.113 . 1-) 41,981 41

.

78 --------

42

115 .721 115 .132 -------- 114,446 377 229,5692

18,561 169,027 48 .323 78 1

008 82

13~579 9

867,069 677,486 7247

284.823 259 .436 7 :470

262.472 186.534 -------- 2 0

166.049 117.617 --------

106.284 90,826 --------

47,411 23 .044 --------

31 28 --------

191~ :161 130 .32 :144

3

'24

3,772 3.573 3 .484

732

77' a 0) --------

597,751 5 .819

183491 3 .288

Is 5~371 533

116,055 1,27 1

89 ~990 601

22 .843 126

1 --------

11 627 520

i.,312 125

190 1

51

446

318 106

4

17 1

41 1

303 6

422

9

34

9D

1,413 32

182 4

630 (")

291 ------

208 28

74 ------

27 ------

74.125 898 Bel 196

7,930 339 154 101

-------- 46 21

5 .735 1,365,530 49,144 1 .566 1,49ilI --------

2 .115 23.621 321 219 131

26,245 219,258 132,603 81,049 28. 945 559 5.354 116,915 79,660 35.666 --- ---- 35.588 --------

".233 3,557,423 1 .621,135 1 .476.232 191,039 1,273,666 9.650

9,807 295.635 243 .179 193.318 191,877 1,164 10,490 817 .883

.

. 5 9,375 142

1 302 2 7 725 219223 395 694,433 34'2"~ .936:63,4' Q 11 :7034 :3171~1 731 412.726 313,635 298.041 -------- 5,321

5 5:835 5

4,064 1,313,741 668 653,935 -------- 651 537 2 .284

752 23.00 028 4,956 -------- 4 :91 --------

57,679 2,291,787 808,444 46CI21 Sfi,653 402.986 4,294

594 8.554 79 5

21 .645 877,675 1 110 905 184 .918 178,725 --- 3 4-171-8-6- ___1_3_6 ------------

3 . 579 41 .551 438 141 1

472 10.036 140 124 99

7.053 291,608 169,673 6,773 3,830 ---- Y.i1_4F --------

2 .765 98.894 5,696 123 15

9886 4 8 3 148.584 50.316 1 41 688") -------- 4 4

66 : 05 53:0177 1 1:1712 3 .970 12.

17 283

3.229 293 .172 245 38 213

475 33 174

15 210400 2498 21 7

63.682 2,222,826 267.907 61,585 9" 1 693 1 .2

------

'

:164 11,407 1,514

1

2N

612 159

9:507 -------- 1 4 t

27440 897 .148 76.080 2 281 .5 6 1 34 25 .475 3.485 ------ -- 262' 62 47 4

25 . 25 41 4

15:06911 441 :5151 341:1333 190 -------- -- ---- ---

34 ------ 6 2.8,4 lo , 3 -------- 17

4

19 175 -------- ----- - --- -------- 176 ---- 11 2.337 53,475 .2 86 --------.5

2

"2 76

:344"51 44 .772 29 .186 12,126 l 6.647 6-9-2- 276 45 34 :3 69 3 228 85 ------- 3 l

3.176 64,092 538 438 --------

34 714 11

58,597 1,927,993 736 .294 495,402 95.688 396,8521 I

17 6,061 193 .ID9 1,7539

. 1 8

697 6.517 84 39 150 ----- ----------- 39

1 23 9

4

------- j - ------6 -- ------- f~ 34

-----

.272 6,901 1,6

' 1 15

4 1 .658 1. 71 _23 ------

. . 3

:717 2

77' 17' :7 2 2

69

:414

' .S

.59 129:9S- A :4072 91 I6~37 14

513 1

53 :445 134 757 6 1 6'03 ---- :2144 3

.23 9 95 ---- - 2 785

17 18.321 0,960 1

54 ------fj 133

2901 9305 74 74

64 882 is 111 38 10 -------- -------- 64 ------

14716 901,431

9:674 194,271

1,238 121,909

357 113,558

881 8.35 1

Feder G. auI To, deposits- .7 ------------------------ 41 .340 asol-ne FICA I oil,

Transferred to 'a ----------------------------------------------------------------------------------------------

Withheld =of Feder

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

CHi n nt at emp oyees --

an g for Excise taxesaviation fuel and Oil-Ail F No .11. and

Presidential Election v Fund s

(b~ 2,11forni, 487, 1 '70 , 4 : 9t:s

s

(a ------- 595.817 32 :421 1~113:'9415 62379 662 451 60. 73 58 31.1 :,287 131 1,1.5

11"n"' 56 3

.4 4,:, .6

w No. Y.~_k_ : :: : :_ 0 403 742

: 111,824 2

610,899 61 9 3 1 3..888 1 .268.840 325,697 22629:6451.1 12196 032,7

~dl 0110 ----------- 208,,26g 202 :3 1~5:215621 711 2 .347 117

rns lv .ni . 12

.9.7 1:0111 1 8151 211.136 2 2 306 763 2

'47 23 :8 1 3":2 0 1.

(f) T:xas Y ------ 7777 259

4

:305 43,109

272 .333 208." 3 --------- 206 .045 1 .872 499 28 1,338,656 1 1 51 913 29.474 25.475 3.488 -------- 438 73

448,603 327 ----- 10 ------ 974 35.571 ------ejS~ 590

71 .208 20 :959 17,082 3 .443 250 1.3

10 :.7744 IDD :0'66,', 100,04- f 4

100 .046 14

( I ----- ----------------- (1) ------

127 14

67 ------

56 28

353 31

78 -----

1,87 0

276

487

603 5

349 ------

113 ------

42 ------

2,186 2

53 ------

525 1

140 ------

58 ------

614 ------

123 ------

86 1 87
Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas-Continued

(in thousands of dollars )

Internet revenue regions, districts,

States, and other sreas~ (States

represented by single districts

indicated in parentheses; totals

for other States shown at hot.

tom of table)

Alcohol taxer-C-tinued

Wines, cordials, etc., taxe s

Imported O-pi

Total (collected Domestic ~ tiona l

by Customs) It

. . .. I-

(18) (19) (20) (21)

... United States, total ------------ 173.515

.Atitintic Region ---------------- 32,73 3

4~086 -----------

18,788 -----------

34 -----------

77 -----------

7,340 6,39 8

11 -----------

Albany -------- (See (c) below) ----- 430 -----------

Augusta ------- (Maine) ------------ 81 -----------

8 ston -------- (Massachusetts) ----

Brooklyn ------ (See jc) below) -----

Buffal ------- (See I.) below) -----

Bu 1,n;t.n ----- (Vermont) ----------

He lord ------ (Connecticut) -------

Manhattan ---- (See (c) below) -----

P rtsmouth ---- (No, Hampshire) ----

P*,ovid r . .. . . .. . (Rhode Island) ------

Mid-Atlantic Region ------------------

Baltimore (Maryland . .it D.C .)-

Newark

I

New Jersey)

Philadelphia --- (See (e) below)-: : :::

Pittsburgh ----- (See (e) below) -----

Richmond ----- (Virginia) ----------

Wilmington ---- (Dole .., .) ---------

South.. .t Region --------------------

Atiranta

- : : :

~Georgi .) ----------

Bi m Inghyl~ Alabama) ---------

C .lu'bi- ------ (South Carolina) ----

Greensboro ---- (North Carolina) ----

J

J :ckson Mississippi) ckso"Jile----- tFloricla) ------- -----------

Nashville ------ (Tennessee) --------

Central Region

Cincinnati ----- ~g

Cleveland ----- (See. w~ (it) below

Detroit --, ------ (Michigan )

India hapois --- (Indiana)

Louisville ------ (Kentucky) ---------

Parker.'burg --- (West Virginia) ------

Midwest Region ----------------------

Aberdeen ------(South Dakota) ------

Chicago ~Sae ~b) --

D

.S

Moi Iowa -

_below

-

)

Fargo --------- (North Dakota) -----

Milwaukee -----(Wisconsin) --------

Om .ha ----- Missb

St . Louis ----:: ("" roj"' )

St

. Pau! -------(Minnesota) ---

Springfield ---- (See (b) below)

Southwest Region --------------------

Albuq, rque --- (New Mexico) -------

Austin ~Ile Cheyam~ (1) below) ------

oxi'as -------- T""(7"'i ; See be ;

Denve r

Little

(C 1 . ad .) ----

Alka - r4 as) ---------

New Orleans, I C,,; ::((Lou siana ) ---------

Oklah. .. Oklahoma) ---------

Wichita .

. . .. ..

(Kansas) -----------

West.

in Region

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

Anchorage B',srs . . .----- (Alaska) -----------

~Idaho) ------------

Helena ---:: : :: Montana) ---------

Honolulu

. .. . .. (

Hawaii) -----------

Los Angeles ---- Phoenix (See (a) below) -----

Eartland - ::: : :: lArieg-on) 0 '

Beer taxes

Imp "ad 0 cup;;-.

Total

fee

Ilected Domestic I tion. 1

by Customs, taxesI

(22) (23) (24) (25

)

3,857 1,265990 9695 1,253,213 3 .0112

332 1140 506 108,377 5ti'l

is 49 ----------- 9

38 35 ----------- ---------- - as

40 13,586 1,960 11 .615 11

35 42 .130 ----------- 42,000 UO

44 22 .775 ----------- 22,659 137

33 2 ----------- ----------- 2

12 512 ----------- 473 8

96 3.667 3.546 ----------- 121

a 18.175 ----------- 18.148 27

6 13,482 ----------- 13,481

1

502 277,096 597 176.218 2!11

36 22,600 597 21,983 21

341 69.370 ----------- 69,320 bo

15 47,111 ----------- 47.043 (is

9 15,439 ----------- 15.393 46

100 22,574 ----------- 22,479 94

2 1 ----------- ----------- 1

737 165.180 601 164,020 5(10

161 23,729 ----------- 23,665 63

12 134 55 ----------- 79

100 42 ----------- ----------- 42

172 47,406 ----------- 47,310 96

2 IDO ----------- ----------- 100

286 49,779 545 49.138 96

4 43.990 ----------- 43,907 s3

814 140.055 499 139,341 216

201 49,127 ----------- 49.097 29

231 9,838 24 9,795 19

2B1 50627 475 50 .135 17

96 15:496

----------- 15

.463 32

2 14,898 ----------- 24,851 47

943 69 -------- 335,174 iCW ---7iii.AVT 3' 9.

2 23 ----------- ----------- 2-3

24 1.172 220 931 10

5 260 --------- 61

-i 11 9

23 162,562 76 162,396 ES

7 5,567 ----------- 5.544 22

6 96,734 1 96.657 11

5 36934 2 36

.808

124

9 31:912 ----------- 31.895 17

570 204,392 437 203,193 '772

4 3 ----------- ----------- 3

32~ 45,798 384 45,128

2E~

7 7

5

188 39,455 .

. . .. . . . E a

7 104,104 ----------- 104,070 5

14 27 ----------- ----------- ' 27

10 14,775 52 14,619 104

6 136 ----------- ----------- 12 6

13 87 ----------- ----------- E 7

819 129,678 1,753 127,632 2S3

2

26 241 1 -----------

3 32 1

2 941 124 816

204

53 720 11029 52606

51 2:395 54 2:33

1

no 589 93 356 139 6,773 is 6.740

----------(Ne-da) 7 7 3

24

31

2

86

10

1 7

---------- ----------- ----------- ----------- ----------- I

SoSell I'll 'I, . Francisco :: ~ '

Sao )

I.h~-------------- I ----------- ------------ 1 27 ----------- ----------- 27

Seattle , --------

below) 104389 890 103,284 216 16,240 453 15,714 74

(Washington) '729 140 421 168 49.520 76 49,426 19 Office of international Operations ---: : 11 11 2 2

Puerto File - ------------------------ 11 11 2 2

UrOthe- ----------------------------------------------------------------------------------------------------------------------

.clistribuladt

Federlet Is, deposits~

--------~xc7e7sj

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

Gaso Ina ubricating oil, an F d

ICA credils~

Tro nsle,red to overnment ofylua ---------- ------------------------------------------------------------------------------------------------ m

Withheld C'e . =*I red 0 rE,! employees --------------------------------------------------------------------------------------------

ri ant for cuie taxesaviation fuel and .11-Ai, Force and

Pr"'yntl aside ------ ;l cfion F7Wd-i----------------------------------------------------------------- ---------------------------

Totals for States not shown above

(a~ C,~Infqrnia ~b 11 .. . .. .------- 109,734 2,025 107 . .. . ..

.289 419 69 .961 1,482

. 5,032 1,535 3,464 33 33,084 220

tic,

(it l New'York ------- 30,644 6,398 24.052 194 68621 3 546 Ohl .

. .. . .. . . . .

. 2.713 1.085 1,196 432 58:965 ' 24

(e) P nnsylvania ---- 1,340 ----------- 1,316 24 62.550 -----------

(f) T :--s ---------- 1.187 670 2 sis 85.253 384

150,399

24,30 4

411

1 43

4 0

4.051

18,743

1

65

846

3

6 ----------- -----------

12.488 2,705 9.28 1

2,786 2,705 45

6:5680 6228

1 32 1:30 5

19 ----------- 10

1,793 ----------- 1 .693

2 ----------- -----------

3,140 1,373 1,030

580 ----------- 419

65 53 -----------

542 ----------- 442

172 ----------- -----------

2 ----------- ------------

1,776 1,320 170

4 -----------

4 .849 1,670 2,365

734 ----------- 532

1, 979 1,085 664

2 .033 585 1 98 ----------- .16 7

2

2 ----------- ----------

3 ----------- ---------

7,149 2,227 4,848

2 ----------- -----------

5,021 1,535 3,46 3

38 ----------- 33

6 4

. . .. . .. . .

339 304 f

7 ----------- -----------

1 .534 189 1.339

191 185 ----------- I I -----------

2

1.931 868 493

4 ----------- I

99? 670 2

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

188 ----------- ----------- 10 ------------ 3

498 ----------- 485

211 198 2

7 -----------

13 ----------- -----------

211 .214 2.327 1011,06 7

3 0) 1-)

26 -----------

4 1 -----------

70 68

5,345

19,259

8,098

1,135 -4,006

51 ------------

68,319 160

32,BZ7 37

64659 416

58 :892 48

62,436 114

84 .494 374

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

(in thousands of dollars )

Internet revenue region%, districts, States, and other srenis~ (States

represented to single districts indicated In parentheses; totals for

T bacco taxe s

Total Cigarettes Cig Other Iother States shown at bottom of table) (26) (27) (2 (29 )

United State, . total --------------------------------------- 2,437,005 2,393,038 51 .581 2.387

North-AtIlintic Region -------------------------------------------- 1 .179 269 336 574

Albany

-------- ------------ "

. (c) b.l . .)_ : ---- --------- 61 -------------- 58 4

Augusta ------- :-: : ----------- tS I n

.)

------ -------------- (1) (1) ------------- I -------------

Boston ----------------------- : (Massachusetts) --------------- 171 i~a

Brooklyn ---------------------- (See (c) below) --------------- 25 1 --------------- -ii

Buffet- ------------------------ (Sea e) below) --------------- -----------------------------

Burlington ---------------------- (Vermont)

He ford - --------------------- (Connecticut)-------------------- ----------- -------------- ----------------- (;T ------------- --------------- 27~b

Manhattan --------------------- (See (c) below) --------------- 671 245 26 399

Portsmouth -------------------- (New Hampshire) -------------- (1) -------------- (*) ---------- --

Providence --------------------- (Rhode island) ---------------- -------------------------------------------------------- :--

Mid-Atlantic Region --------------------------------------------- 633,840 613 .209 20,333 298

B Itimore --------------- ----- (Ne'Viand (Me & D.C .) 13 ------------- 36 ------------- -------------- 6 3

Newark ------------------: ----- Jersey) ----------------- 244 l03

Philadelphia ------------------- (See (e) below) --------------- 20,

1

47 ----------- 20 .14 7

Pittsburgh --------------------- (See (e) below) --------------- 3 F; 3

Richmond --------------------- (Virginia) --------------------- 613,411 613,076 175 159

Wilmington -------------------- (Delaware) ------------------- -------------------------------------------------------------

Southeast Region ----------------------------------------------- 1,240 .235 1,224,312 14 .698 1,224

AtIant- ------------------------ (Georgia) ---- 665

... . ...

. 1.66 ---------------

Birmingham ------------------- (Alabama) --- 1. 609 --------- 60 9

Columbia ---------------------- (South Carolina)

Greensboro -------------------- (North Carolina) ----------- --------------- ----------- 1,226,9(9*2) 1 .224 .198 2,W93

Jackson ----------------------- (Mississippi)

Jacksonville -------------------- (Florida) --------- --

------ --------- 1-07 ---------- j55 ff'F ~&'Y2i

Nashville ---------------------- (Tennessee) ------------------ 470 -------------- 3 467

Contra! Region -------------------------------------------------

549'91

6 545,205 4.665 46

Cincinnati --------------------- (Sea (it) below) --------------- 3 83 -------------

Cleveland ---------------------- (See (d) below) 8 648

-- ---------- 652 -------

: :- -1 1

Detroit ------------------------ (Michigan) -----: : ------------- 2 ----------::

indi-spolis -------------------- (Indiana) ------------ 453 ------------ 453 ---------------

Louisville ---------------------- (Kentucky) ---------- 548 .4 3 545,205 3.196 42

Parkersburg -------------------- (West Virginia) -------------- 2483 283 --

Mid-st Region ------------------------------------------------ 6 -------------- 10 51

Aberdeen ~South Dakota) -------------

: - -------------

Ch icago See (b) below) 65 ---------------------- i--------------

Des Moines -------------------- (Iowa) -------- : -------------- ------------- --- -------------- - ---------- -

Farg .u~;~--_-: ------------------ (North Dakota) ---------------- IT ------ I -: : :::- --

Milw ------------------ (Wisconsin) ------------------- 7 -------------- 6 1

Omaha ------------------------- (Nebraska)

St . Louis ----------------------- (Missouri) ------ ---- ----- ------------ F) ----------------- -------------- (-*-) -------------- ----- : :.:: ----------

St. Paul ------------------------ (Minnesota) ------------------- ------------------------------

S,uth- Springfield --------------------- (See (b) below) ---------- ---- -------------------------------------------------------------

.t Region --------------------------------------- ------ 223 a 207 a

Albuquerque ---------- New "'i") ----------------- ------------

Austin --------------- (f) below) ---------------- Hi ---------------i------------- YC7---------------

Cheyenne ---------------------- (Wyoming) --------------

Dallas ------------------------- (See M below) -- : :-: : :

Denver ------------------------ (Colorado) ----- : ::: :: : -------

Uttle Rock --------------------- (Arkansas) -----: -------- : ----: :: : : --------- -----------------------

New Orleans %ci isiami) 0 is -------- ---------- ------------- home Cit;

Oklahoma) ------------------- ------------------------------------------ -------------------- u'

Wichita

-------

: ---------------- (Kansas) --------------------- -----------------------------------------------------------

Western Region ------------------------------------------------ 212 2 25 iii;

Anchorage_ ::- ::: : :: : ::: : ::: : : : : IAI.,roa)

Boise - Id I -- ------------- ------------- I . ------- ----------- N

Helen :

a . .. . .. . .. . . .. . ... . .. . . .. (

Montan.)

Honolulu ---------------------- (Hawaii) --------------------- ------------- ------------- --- 2 1

Los Angeles ------------- :-: :-:: ~S- III below) ---------- 95 . .. . .. . .. . . 23_ 72

Ph enix ---------------- - - Arizona)

Portland Reno ----------------------- (0 ration) ---------

------------------------- (Nevada) ------------ -------------- 1 ---------------

Salt Lake City ------------------ ~Iltaht.,-,,,,,----- :-- : : ------ --------

San Francisco ------------------ See I ---- -- ------ ---

Seattle ------------------------ (Washington) ----------------- 8 V) 8

Office of International Oper tions --------------------------------- 1 M39 32 11,307 ---------------

Puerto Ric- -------------------------------------------------- 11 .339 32 11,307 ------

Other ------------------------------------------------------- --------------------- I -------------------------------

Undistributed :

Federal To, deposits - ----------------------------------------------

Gasoline lubricating oil . and excess FICA credIts' ----------------------

Transferred to Government of Guam ------------------------------------------------------------------------------

Wlthh eld taxes of ft E Federal employees . -------------------------------------------------------------------------------------------

Clearing account or -se ta,ex-aviation fuel and oil-Air Force

and

Presfdential Election Fund Navy --------------- ------------------------------------------------------------------------- 0 -------------------------------------------------------------------------------------------

Totals for States rulit shorien above

~ab~ ClsItilfo m is ----------------- 200 ... . .. . . . . . . 1 24 175

11 out -------------------- 5 - 4 46

~cl N w York ------------------ 757 269 81 403

(a)it OhoV 735 ----------- T;~; 73, 4

P nn, 20,1 0 20.150

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

(f) ': . . . .. . . .. . . .. . . . : .. . . ..

222 8 207

88 1 89
Table I .-Internal revenue collections by sources and by Internal revenue regions, districts, States, and other areas-Continued

(in thousands of dollars )

Internal revenue regions, districts,

ttates. and other areasi (States

represented by single districts

indicated In parentheses; totah,

far oth to . t. ; St t- shown at bat.

of bl .)

Manufacturer's excise taxes R.1all .e . .. .ise tione .

LubriTotal Gasoline catin an, atg. . Other I- Total

NonConn.

mercial

aviation fuel

gasoline

ManC .-

.-hill

..I .ti.n

fuel

other

gasolin

e

3 .214

30,898 276

6,423 58

236 4 4~

1 :0 0

12,736 20

35 .376 491

1 .335

3,107 ----------

587,674 21,954

21,189 294

68,454 3.83 3

193,084 6,911

289,657 10,915

14 .5 1 1

750 ----------

121,858 451

22,530 115

10,521 2

12,919 1

38826 :915 51

13,507 191 1

4,640 13 6

332,777 5,791

12,421 65

158 .101 2,29 5

57,831 366

29 .293 455

72 :832 2,576

2299 34

523,996 10.829

94 :219

2 7904 8.0806

15683 134

3~507 31

6513 163

6 :551 364

ths d series u

, bb.,

(30) (31) (32) (33) (30 (35) (36) (37) (38)

United State ., total ------------ 5,747 154 4.087,669 105,723

N

nh-Atlainti. Region ---------- 366.338 220,558 892

oAlbany r -------- ----- 3.412 2,84 2

Augusta

B Sta n

Brooklyn ------ (See (c) below)

Buffalo ------- (See (c) below)

Burlington -- --- (Vermont) .

.. . .

Hanford ------ (Connecticut) -------

ivi a nha"an ---- (See (c) below) -----

Portsmouth ---- I N w Hampshire) ----

.Providence

-j~-

(Rhode Island) ------

d-Allimitic Be on ------------------

Utirri.r. ~Mayland and D.C.)

N vark - _- :::: N .wJ .r.

.Y) -----

Philadelphi;

---

(See (a) below) -----

P - -'- Ri (Virginia) 1= : :::: " ' (7) a ---------- ) . . .. .

Wilmington ---- (Delaware) ---------

South. .. t Regio n

A, lanto -- :F6.

BirminghaW-= (Alabama)

Columbi - ------ (South

C-F.~;~

Greensboro ---- (North Carolina) ----

384 8

38 :095

" 173

5,:77 3

1.303

184,264

48.89 9

1,697

3.87 4

782,430

70229

89:20 1

291 .982

312,096

17.28 2

1 .640

16Z582

30.387

113:137

928

44,13 4

17 331

I k' :c nvT1T;-::-IMi-xs'pP' Florida) --- 20:307

Nash.ill- ------ (Tennessee) -------- 17.959

Central Region ---------------------- 1 .109.149

Cincinnati : :::- ~Ie: ld~ 1* :,- 15,111

Cleveland -----: (So be

.~ : : : : :

86.423

Detroit ___ (Michigan)_:: : : : : :: : 294:3 3

lndi-~~lis lndian,i 41 4088

Lou isvill

. . . .. . . I

Kentucky) 78, 19

Parkersburg

___

(West Virgir7W:: : :

:- 3,024

7

Midwest R .gle- ----------------: : : ::: 690,067

Aberdeen ------(South Dakota) 4 :g13

C'

icago ------- (See (b) below) ----- 417 37

Des Moines ---- (Iowa) 240 6

Fargo U-IZs ;t7a5 5:885 1

Mil".

We . Wisconsin) 171:71971 Omaha.. . .. . . I

Nabra .

k.)

5

St: Louis so1ri,)a-- . _ : : ::: :~Mj 1 : : :: : :: : 64:151 55 :182

St Pa I M

r ..

. 1 61465 52472

Springfield ---- (See (p) below) ----- 27 .114 23,344

Southwest Region A,b .o.en, .. :,, ----------------- 1,,45,9Z4 , 1,1150 .1sa

8

-- ev, Mexico) Austin -------- (Sao (J) belowT-: : :: : 1 .07~1 :91 1 .031 643

C heyerin, ----- (Wyoming) --------- 20,894 20 . 84

D

all

(Sea (f) b I ) ------ 323,765 30 5

.78

3

Denver ::: : :: : : Colo it I -------

Little Rock ;-:: : ~Art%ni .. I) ---------

New Orleans L .

. .. . .. . . . .

Oklahoma City__(Oklahoma) ---------

Wichita .

. . .. . .

(Kansas) -----------

Western Region ---

Anchorage -----

.el Baia, .na~ ((to ho)

.Ont on;T

Himol.1 - ------ (Hawaii) ---

Los Angeles ---- (See (a) belo;T)-: : :: :

11o,"i, -: : :: : : po lArronii)

ftland (Oregon)

Reno --------- (Nevada)

a It Lak . C l

2 ly S n Irand. ..

Sea ti

- -------

(Washington )

Office"of ~ntennatlonal Othhatiom ------

P. ento Rico --------------

Other -------------------

Undi tributioll :

58,039 42 .3

42,460 15 39 .586o

.900 14,03

1

362596 347,683

4 5:274 43 .000

684,3352 550,027

7 7

2~ :317 1 246 :0115

l 70

376 - 1

384,104 348,498

670

4

1

4

34.846 4,937

153:711 1,748 .8 1.

924

196209

57:32 2

1 .32?

1 .329

1 .0598 2

12

50.05~

31,83 t

8,7485

657

41 9

7,936

451

25,7551

9.28~

4!

Tires

(wholly Moto r

or In vehicle

pan of chassis

rubber), bodi.

inner P:T

tubes, and

and cces827,256

IM02 2

91

531

1,68 3

17,909

22 .141

94

138 .359

6,920

147

15 6

86,107

46,905

9,706

23,614

4,856

777

249

15,371

1,487

2 .54 1

331

2 .566

7 .695

457

293

482.89 2

886

481,626

-44 2

3 "11.

192

13,554

7,26410

3,353

45

5 10

2,~21

63

159

23

18,7885 1

4,398

1 6

1

:025

11 746

535

1,3459

95

22,477

14;

28954

18,109 M

770

133

73

182 6 6.372 2,425

6 :86489 50 276

2? ---------- 46

20 ii

646.352 75IS3 416 2" 20877 31.955

13.020 43:847 24 :410 '614 1,966

323 157 1,335 46 60

100 3 1,507 31 97

916 4.322 3,460 97 203

3.223 560 2 .040 82 100

2.159

4 .823 8.438 16 756

78 1 16 71 1 15 1 1

1,854 31 .295 2.882 116 179

3,68 1 2.431 2,8 2 28 534

184 3 1 769 21 24

503 108 375 16 2

81,329 5,367 60 658 1,038 4,190

1 .695 145 3:240 77 13

3,902 3,308 8.525 454

1 , 6

P

67,339 1,034 10 .885 171 225

6.428 239 20.705 184 1 .295

1,339 625 6 1 61 128 262

626 1 5 1 :143 23 595

21,555 3,347 43736 1905 3613

6.156 97 7:185 '398 '731

5 ' 377 95 5

.408

155 34

344 333 3.689 157 35 51

2,691 5 1 8 .354 289 830

6 8 1 35 3: 587 136 102

3

. "T 2

.617 9582 559 753

2,771 11 9 5,931 211 500

285,805 1,8" '9 117 11082 2,94 3

2~24

' 56

3~426 135 371

435.3 81. 25 '675 243 639

221:814 733 9,00 211

91,

1 ~ 158

264 10.926 2 62 519

2,292 7 7.655 98 331

717 5

1

.945 57 9

7

130,274 11,411 64,705 1,297 3,627

757 1,756 42 53

100,598 3,192 2482 275 536

4,244 671 6:645 152 266

2268 1411 55 370

10;772 9916 6:4 22 1 5 356

734 119 4,091 1 26 305

5, 532 286 8,967 1 83 993

2,194 5,589 6,222 204

3,175 560 4.367 106 600 14 7

24,222 2,103 108,946 2,66 6~988

70 1 3

:611 126 157

3,100 101 41 142 828 2,73 8

25 4 3 '062 47 49

7,841 368 25 10 500 1 .118

3367 531 4 :5131 244 565

1 :265 900 . 5 .349 159 132

284 106 5025

. ..

524

5,556 76 1 6:058 265 1,33"

1,713 1 5 5,049 2D7 375

89,316 6 .760 74.598 2,278 11,628

1 8 1 114

1

2

136 177 Z2 1 9 81 83 1 19

10 22 1 .926 94 7 7

74 13 240 21 6

6.339 1,873 3t ,445 724 7,160

54 3 6 '1 " 191 206

28.339 754 4,522 1 55 257

6 4 1,576 5 go

472 2

.82 9 2

3 '81 7 .305 102 9 9

748 20,758 55 531

49

.96

1 346 3,286 1 83 140

831 43 2

831- -------ifi 84 -----------

Fed ,I To, deposits - --------

Gasoline lubricating oil, an d ;;,7~7.i ---------------------------------------------------- --------------------------------------

FICA credits' ---------

W h

d t o

Transferred to Governmen it hele as of Federal employees t ----------------------: -------------------------------------------------------------------

Clearing

,

ccount to, Excise t-esaviaton fuel and oil-Ai, Force an

Navy -----------------

Presidential Election FundO

Totals far State, net shown above

(a) California (b~ ------- 580.313 531,344 15.657 20 .534 10,156 2,621 52203 1.279 7,6 1

Illinois ---------- 444,151 321,248 8,092 7 .207 103 .773 3,752 29: 1 91 381 683

~ d.l New York ------- 133,257 682 170 :544 . 65960 47,061 9,386 7,971 14,705 319 1 450

Ohio ----------- 702,092 22 23 482, 12 45,824 875 1 101 378 1:010

yl.ani . 5 73,767 1.273 9 ~ (a) Pen", - ::: : ~.1:071 482,741 17,826 28,470 31 590 355 1.520

in Texas

-----

394 843 1,337 .426 40,584 5

.

423 10,941 469 66 .652 1.328 3.856

Table I .-Internat revenue collections by sources and by Interrial revenue regions, districts, States, and other areas-Continued

(in thousands of dollars)

Internal revenue regions, districts,

States, and other areas- (States

represented by single districts

Indicated In parentheses; totals

far other States shown at betto .

of table)

Retailees excise taxes

Continued all. .. 11... . Us I. .. .

Diesel Telephone Trans

.

an and

Us. of P

speclal Other I- Total toletyp

ofoftation into,.

met. writer Persons national

by I, air It.... I

fuel facilities

United States, total ------------ 373,414 -1 3,154,324 1,892.731 659,177 5C908 41,931 120.006

North-Atlantic Region ---------------- 21,828 2 654,209 288,157 172,277 31,379 8,569 41,54 1

Albany -------- (So. I .) below) ----- 1,229 ----------- 4,852 3,428 98 1 a 4

Augusta ---: --- I1ai.ne1.;5jjjjjT-:-: : 1:179 ---- : ------ ~:6 S 491 75 --------- ) - 1 3

Boston ---- ---- M . 3 160 ---- ------ g3 126 83,511 478 42 2,062

Brook ---- (See (C) below) ----- 1,857 2 61,154 72 50,033 4,577 3,984 4

uffeloly (1) ---- (See (c) below) ----- 7,520 ----------- 13,587 9,783 207 21 15

Burlington ----- (Vermont) ---------- 685 ----------- 623 140 14 ---------- 6 1

Hartford ------ (Connecticut) ------- 2,587 ----------- 34,949 30,788 86 5 3

Manhattan ---- (See (c) below) ----- 2.329 ----------- 442.262 159.677 121 .255 26.796 4 .494

P' rhmn..th ---- (New Hampshire) ---- 725 ----------- 1,193 251 12 ---------- 10

P,oviden -- ---- (Rhode Island) ------ 357 ----------- 776 17 20 ---------- I-)

MidAtlantic Region ------------ 45432 -2 335,394 255.172 24,622 2 1 1,013

Baltimore --:: :~.1.1Zj11nc1.Y1hc1 EE .)-- :"7 -------- _-j 74 .224 43,487 24.057 236 1 885

Newark ---- ime ------- 6.39 5 1 10.701 91,691 141 27

Philadelphia --- (See (a) below) ----- 10,489 ----------- 87,061 68246 232 6

Pittsburgh (a) below) Rl ----- 19.225 ----------- 15:331 lo:,658 50 17

hrrard! (Virginia) - 5,771 - 45499 41088

1

28 6

Wilmington -:-: Delaware) ::: : : : : :: 525 2,578 2

Southeast Region -------------------- 38,218 ----------- 485,864 299,24 8

I' - :

: ------- 1,111 ----: : :: : :: 23:l .g03 133,264

Birm lfgh C ;W Zbrag.1) 4.113 1 ~ 5:073 106,124

i7i- ------ (South C-olIW;)-: ::: 3 1 76

. . .. . .

6 . 53 2,419

G .. mo,

.

J .. .. . . (North Carolina) ---- 7:23 ----------- 39 3'76 23.132

.,I: .*n -- -(Mississippi) ------- 3349 ----------- 2

.5

,c 54 527

I

k nv~

a

1

; -:- (Florida) ----------- 8:270 ----------- 75,827 27.214

Nashville ------ (Tennessee) -------- 5.220 ----------- 13,754 6,568

Contra Region --------- 45,094 1-) 277,142 226.61 3

Cinclinnati ----- (See (d) 2

.920 -----------

34,852 23 069

_ : :: : :((Fee (d) bill-) ----- 14.793 11 :211 767 1

8 1

Detr

lis .. .(Michigan) 8841 9 70.67

Indiana ; Indiana) 4:1,46 47,937 39.482

Louisville ------ (Kentucky) --------- .7 :226 ----------- B,060 5,541

Parkersburg --- (West Virginia) ------ 79, 1* 1 12,665 11,061

Midwest Region ---------------------- .1.18 1 ----------: 707:466 399.060

Aberdeen ------(South Dakota) ------ 1.662 1 710 753

Chicag1r;-~-- :::- (See lb) below) ----- 24.012 -----

: : :: : : 237,443 79'401

Des M .i

. _(

I-w- ------------- 6.227 10217 5.943

Fargo,,.,: :::- 11,1h.111 to)- - - 986 ::-: : ------ 4:966 .16

Mll,a Wisco sin)o ::_ ::: : : 5 :91 4 1 6 ,g 10

Omaha ------- (Nebraska) 3 66' 816o4 79 .031

St. Louis ------ (Missouri) ---------- 7,791 02 14181:022 183.670

St. Paul ------- (Minnesota) -------- 5,4 7 429

3

:218

Springfield ---- (See (b) below) ----- 4

,

114 ----------- 14 , 879 12 21 7

Southwest Region -------------------- 99.294 ----------- 200,217 87.530

Albuquerque (New Mexico) ------- 3,336 ---- 1:113 as 0

Austin Ci,eyen,~ - :-:-: 11- in below) ------ 37,575 ----: : ::: :: 36 4 Z.2'77'

; (Wyoming) 2 6 ----------- 823 122

D I

Is, S I be 23 .93 ----------- 42470

10,

Dan

.. . .. . ... .

(Colorado) --------- 3.321 ----- 83:011 57.953488

Little Rock -

:: : ~Arl . .. . . ) ::: : :: : : : 1:017 4 , 901 2,338

New 0,1.an; Louisiana) 4216

. . . ..

. 0,559 1.798

Oklahoma City: :(Oklahoma) --------- 14 :464 102611 4 is

Wichita ----- (Kansas) ----------- 4467 1 0:90 7:338 2

Western Region ---------------------- 63,682 1-) 486,409 3326.927

Anchorage ----- (Alaska) .054

1 .11,

.474

1,is, He - ~ldiih.) : :: : :: 2 55 ~.0 217

--------- 1,755 2:8560 515

I'

(Montana) 11.54

Honolulu Hawaii) ----------- 213 7 7,280

Los Angeles RA, (a) below) ----- 23.560 115,520 40,474

Phoenix ----- A -zone) ------ -- 5:721 27 7 131

Portland ------ (80rregon) ----------- 4 209 16:2011 2,246

SR:no --------- (Neved.) 1 :411 .0, 165

It Lake City (Utah) -- 2 245

. .

. 10,1596, 174 Son Francisco (See (a) iielow) 19171 ----------- 251,402 226738

S-ttl, -------- (Washington) ---- 2 962 ----------- 63,734 56:507

Office of International Operations ------ 84 --------- 1,622 23

Puerto Rico ------ 1, 76 ----------

Ot r ----------- 84 5,846 23

Undistributed :

1 .900

52 3

31

7

I* )

1 4

9

123.766 3 S44 1 :411

OZ164 1 :113 0 6

68 -----

7.217 9 204

35 1-) 9

33,416

86 0

1,491

636

208

484 14

0

it

11

226.959

6

127,677

31

2

388

5 0

65.118

33,536

150

44,370

13,8654

20.5851

9 .09 9

34

552

52

1 1 9

62,795

1 .228

28

9

7

2,89

49 .291

6,1 19 10 7

138

2 B

1 372

1 :498

2,893

2,898

----------

5,234

----------

9

2.762

2.049

4

Transpor.

Uti n .1

property

by ai r

39

255

32

1,708

469

1 .069

-9 2

36 7

1,563

73

Is

M

17 .233

6,5886 1

4

39,439

82

8.453

23

3. 054

5.27

38

64

1260

6 :357

4 .54 3

is

41

1 2

1,617

is

a UN99

149

1,862

5

1 0

3

4,880

M

1,33 8

'

2

3 .22 8

103

8

9.128 27 4

1,326 14

18 9

1 .533 1.691 22 .422

56 -)

-------i'E

3 99 5

.7(6

---------- ----------- -2

1 .153 gas

47 298 12.1325

11

W 7 4,577)

1

14 . .. . .. . . ..

---------- 1 9 3

8,129 6,947 21 29 754 .807

P

1

5

2 1 1

76 167

4 .459 4,163 3

---------- 57 47

799 282 1.440

23

---------- 1 765

2.036 11 1 .182 47 2

728 322 45

1 .972 7

a 1:76 8

1,964 ----------------------

Federal Tax deposits - ------------ ------------ ----------- ----------- ----------- ----------- ----------- - --------------------

Gasoline lubricating oil, and excess

F

CA -edl 97 .. . . . . . . . . .. . . . . ..

Tran fas red to Government r of Guam

Withhold taxes of Federal employees ----------------------------------------------------------------- ----------------------

Cie, ri ng accou nt to, Excise taxesaviation fuel and oil-Air Force and

N evy -------------------

Presidential Election Fund

Total . I r state an am abov e

(a) California ------- 43,231 22 267:211 50.663 6495 5,345 11,510

(b) Illinois ---------- 28.127 ----------- 252 .322 91 6 8 1 27,82' 1:231 6.607 1,347

(c) No. York ------- 12.935 2 521,855 172,960 IM .592 31,374 8,507 39,462

(d) Ohio ----------- 17,714 --- 120:162 11:111 . 845 7 -594 4.648

W Pennsylvania ---- 29,714 --- l 02392 78904 282 23 44 5.312

(f) Texas ---------- 61,468 ----------- 78.619 13,215 34 .448 1,418 1 .287 5.77 1

10.059

(39) (40) (41) (42) (43) (44) (45) (46)

90 1 91
Table I .-Interrial revenue collections by sources and by internal revenue regions, districts, States, and other amas- .Continued

(in thousands of dollars)

Internal revenue regions, districts

.

States . and other areas I (States

represented by single districts

indicated in P'"Inthess .; total.,

far other States shown at bottom of table)

(47) (48) (49) (50) (51)

ftl-iati ..

an d

m.rilliu.n .

including

.up.

Urinal '

It

Miscellaneous excise taxes-Continue d

Wagering taxes

Coln- Us. to. an

operated O_pia . highway

g.ml.g

no[ Was ..

motor

derel... tio vehicles

United States, total ------------ tell 6,571 107 6,451

North,Atiantic Region ---------------- 17 42 a 386

Albany (See (c) below) ------------- ---------- 3 5

A,gusta7------: (Maine) ------------ (*) ----- I-) ---------

Boston (M

. ...chu'"'t"')

----- 2 1 36

Brooklyn ------ (Soo (c) below) ---- 23 3 111

Burial

- ------- (See V

below) ----- (1) 1 151

Hart Burlington --- :_ ----------------- _ iVerm-~)

Zonford ----- (Connecticut) ------- i---------F -------F-------ii

47

Port=uth __---- ISN*e.w(H') b"* - .-Ishwil). ) :: ::

Prov denCO ---- (KnOCe ISIano) ------

Mid-AtItrati . R .910 - ------------------

B"""' lll,,yl*nd Ind 1.13 ::

Newark --:: :::

(New Jersey) -----

Philadelphia b.1.1w)

Pitts be

w)

chmo burgh.d :---- (Virgi ri,a)

Wilmington ---- (Delaware) ---------

Southeast Region -

Atiant- ------- (Fdeargia)

Birmingha C .furrb . _m ::: ~Alabiim . )

is -_ South Carolina) ----

Greensboro ---- (North Carolina) ----

,:Ccks.on - ----- (Mississippi)

ks nvili~ --- (Florida) ---------

Nashville ------ (T-nes .. .) --------

Central Region --- -- -- ---------

5 1 1 1

301 557 296

401 84

Cmc nnati ----- (See (d) below)

3 36 30

1 4 1 so

2 60 1 54

21 55 1

2 1 2

6 1,995

2 166 (.1

C:i 796

0) 21 (1)

1 1 26 2

4 a 4

6

887

437

206

C eveland ----- (See (d) bel i*) 38

Detroit

P ' - 3

-------- (Michigan) 3 3

India, poIis__: :0,c1i,,.ra) 40I

Louisville -_ - I

Ken ca') .. . .. . ... . . . . . . .

Parkersburg --- (West Virginia) ------------- 131

Midwest Region ---------------------- 25 2887

Ab.rd an ------(South Dakota) ------ 2

11 5

Chicago -- : :: : ((I,e lb) below) ----- 16 12

.as MoiW~s

Iowa ------------- 0) ------ -

Fargo - _:_ (North Dakota) -------------

M

hvfi . .~w

i

.7: :

(Wisconsin) 3

Oma St. Louis hr- ------- . .. . .. . iNebraska) (Missouri) 1 51

---------- i*) 65

St . Paul ------- (Minnesota)

Springfield ---- (See (b) be[.;;) - -: : :- _

Southwest Region ------i~-------------

Albuquerque --- (New exico) -------

A

.

.In -------- (See (0 below)

Cheyenne ----- (Wyoming) if ---

Dallas -------- (See I ) below)

Deriver -------- (Colorado) ---

Littlellock -::-iArl,n. .. I :-:: ---:

New Orl,an;

_

Louisian:))

. . .. .

Oklahoma City: :(Oklahom _ : -------

Wichita (Kansas) -----------

West.- Regio n

Anchorag e

Boise --------- (Idaho) -----------

Helen- -------- (Montana)

Honolulu ------ (..wall ) ---

Los Angeles (So. (. I 1;;I ;W) -----

Phoenix --- (Ar.. .n.) ----------

Portland ------ (Oregon) ---

Reno --------- (Nevada )

Salt Lak . City (Utah) ---:: -------

S

n

:a Francisco (See (a) below) -----

ttle -------- (Washington) -------

1 23

28 176

fl) 23

4 1 .) 1 5

5 ------

6 if 2 5

1

21

10 65

V) 15 761 :...78

3 1

C.) 62 4 103

~6 44

3

12 257

V)1 1 52,349

10 307

14 57

48

1 .268

677

78

29250

1 11

87349

2 82.6

284

75

119

341

1183

249

13

125

29

1 7

4

304

931

100

67

28

42

2 5

2'9171

14

19

441

4

2 .648

52

167I I

Use tax

on civil

.,,craft

Private

found~ Uncliesid.

tions net other . . tied

Invest. inuch,

ment

Inc.-

tax

(52) (53) (54) (55)

298.462 20 .786 69.802 81,204 1 .648

19,486 5 .631 28,465 58,250 3Z7,220

1,291 1-) -------- 13 770

922 17 139 38 308

3,672 77 2.489 530 -2.612

2,298 -------- 59 49,032

3,385 -------- 23 -3.85 7

366 10 75 12 19

2,092 70 1,196 669 57,329

4,139 5.427 24.156 56 .832 226,62 5

628 19 230 25 1 7 944

493 0 179 50 -1.339

26,506 947 10.

940

6, 589 " 087

3 185 394 1 .010 4c7 31 :936

6:996 137 4143 4.444 -22.544

7,839 278 4: 171 889 10.036

4212 234 -6,293

3 :5 1 3 ---------li~ -------iTET 77 -

761 54 1,232 477 C4,6309E

28,971 2.741 4,223 Z078 -33 .227

3 '988 1,400 1,165 591 -1-180

3703 98 1 1 41 37 739

:745 47 188 17 276

6 529 230 1,653 338 -2, 69

1 :708 55 48 4 -17Z

7522 802 694 649 -29,562

3:777 109 334 100 -859

30 ' 810 947 71087 1,318 -49,038

4 .6ii 328 2.639 341 -1,573

7 386 -------- - I ,234

9:780 iff----- E_sWEF 11101 _30:0 2

62 0 13 1.3 0 151 - 1 5 . 713

2 :0999 49 126 117 2,730

11211 30 73 11 -165

32,272 5,220 7,915 3,205 11,044

783 26 14 9 15

760 3,557 3,6 7 2,212 13,402

3 :722 97 2800 122 164

770 29 26 2 - 2,336

4,619 117 876 153 -2,265

2,040 74

1 a 1

42

-Z

2 2

5 .047 230 1.226 470

5,247 1 .09 1 1.705 192 -3 .5 7 168

2,438 --------------------- 3 1 , 774

29,1111 1,935 6.522 4,358 -30D,391

69 1 50 2

1

22 -780

6.303 1,103 4,200 1 .873 -327,524

576 54 51 5 804

7 :7131 -------- jjj -------- i-i-e 961 9 :121

2 21

1 8 1 9

2 5

2,35 1 75 72 10 1 a

2,339 124 255 847 225

3:05024 214 1.038 374 -4 .7 9

3 0 101 158 85 2330

30,837 3,392 4,576 4,825 -53,945

297 163

22

5 6'5

1A 1 5 3 48 57

1,067 63 25 6 178

523 a, 253 150 _ 390

78 2 2,539 3,194 3 .356 -27,749

2 :091 100 165 60 141

4,617 109 227 63 - 1 0:727

4

1

2 42 21

0

2 - 1 49

1 .294 26 53 32 - 216

7

.997 ----------- 553 -175

.64

3 .233 --------53 3iTST

526 _I

. 287

Office of International Operations --------------------------------------------- 239 72 71 Sao 1,460

Puerto Rico

--------------------------------- 368

Other

U ridl tritnited ------ -------------------------------------- 1,03 :

Federal To . deposits - --------

;ic7.7~j ------------------------------------------------- -------------------------------- 41,340

Gasoline lubricating oil, an d

FICA c-ifibil ---------

Transferred to Government

With held taxes of Federal employees - ------------------------------------------------------ : --------- : -------------------------

Cl=nacc unt for Excise t-esfuel and oil-Air Force and

Presidential Election Fund Navy -------------------------------------- - ---------------------

Totals for States not shown abov e

(,) California 37 74 1 55 15889 2,539 3,194 3,909 -43,39- (b) n I I

lot Illinois 27 34 2 32 0 :040 3557 3,687 2 .21

6 15

:176

New York ------- 13 1 -) 6 314 11 .113 5 :428 24,156 56 .927 272569

(d) Ohio ----------- 1 244 3 115 11.429 328 2,639 530 -19.808

(a) P. a ---- 3 64 2

1

34

1

in .=ylv his 2 :0'1 278 4,171 1,124 37

---------- 8 1 1

294 14

238 1. 103 4 .200 2,834

_31 7

:594

Table 2--Internal revenue collections by sources and by quarters

In thousands of dollars.

Source of revenue Quarter ended

Sept . 30, 1973 Dec . 31, 1973 Mar. 31, 1974 June 30, 1974

Grand total ---------------------------------------------- 59.605 .087 55,540.668 67,029 .542 86,776 .937

Corporation income tax ------------------------------------------ 7.933.140 8.655 .388 81675.690 16,480,026

Individual income and employment t. .. a, total ---------------------- 45,948.051 41 .048,248 53.149.441 64.851,5Q

Income lax not withhold and self-employment

----- --------------- 5

.212,118 1.195,871 8,818,334 18 .593 .738

Income tax withheld and old-age disability insurance I - ----------- 39.988,547 39.266 .358 43,546,550 45,387 .199

Railroad retirement ------------------------------------------- 367.197 358,358 370,348 412,090

Unemployment insurance -------------------------------------- 380,190 227 .660 414,209 458,51 5

Estate ta x

Gin tax -------------------------------------------------------

Ex .lize taxes, total ----------------------------------------------

Alcohol taxes, total' -------------------------------------------

Distilled spirit, - --------------------------------------------

Wines, cordials, etc - ----------------------------------------

Bear - -----------------------------------------------------

Tobacco taxes . total~l -----------------------------------------

Cigarette s

Cigars - ---------------------------------------------------

Other'- ---------------------------------------------------

1,154,102

126.582

4 .443.211

1,172,533

90,972

4 .573,547

1,213,687

1",973

3,945,552

1,119.503

78,32 3

4,247.54 2

1,196,309 2,450,406 1 .274,704 1 .437.05

837,683 1.097,353 943,900 1.0400 5

35.731 51 .624 43,264 42:897

322.896 301 .428 287,540 354 .12 6

615.551 637.753 582.991 600.712

603 686 622335 57 58 82 1 5 :116

11 :325 14 : 9 1 1' : 2'6'5' 4

1

2

540 589 614 .i s 3

Manufacturer's excise taxes, total ------------------------------- 1,497.425 1,531,366 1,402.928 le3lOsA13~

Gasoline -------------------------------------------------- 1.033,856 1,233,817 1.020,477 899.519

Lubricating oil, etc- ----------------------------------------- 28,018 26 .925 25.813 24.967

Tires (wholly or in pan of rubber). inner tubes, and tread rubber -_ 237.915 205 .174 196,771 187.396

Moto, vehicles, chassis, bodies, pans, and accessories ----------- 179.772 147,028 144.132 175.420

Other'- --------------------------------------------------- 17.864 18,421 15,735 23.133

Retailer's excise taxes, total ------------------------------------ 108,161 104,96B 104.179 W937

Noncommercial aviation gasoline ----------------------------- 2,952 3,061 2.436 2.427

Noncommercial aviation fuel other than gasoline ---------------- 12,327 6.483 6.742 6,404

Diesel and special motor fuels -------------------------------- 92,884 95.4!4 95.001 90 .104

Other I - --------------------------------------------------- -3 ----------------- 2

Miscellaneous excise taxes, total -------------------------------- ~2 ~110 17 1~ 3 654p475

M

.!2 ~ ~!22

Telephone and teletypewriter exchange services ----------------- S7.1

001 7S.94

347,176

Transportation of persons by air ------------------------------ 168,674 168.829 160,507 161.168

Use of international air travel facilities ------------------------ 13.610 18.875 13.428 10.994

Transportati- of property by a!- ----------------------------- 10.243 10.409 10.245 11.054

Sugar -------------------------------------- I -------------- 32,547 31,123 29,265 28.070

Narcotics and marihuana . including occupational taxes ----------- 30 29 75 54

Coin-operated gaming devices -------------------------------- 4,367 746 284 1,174

Wagering t xes :

Occupational 3 12 20 36

Wag-- ------ 970 1.599 1.712 2,169

Use tax on highway motor vehicle - ---------------------------- 98.202 29,674 34,936 35.651

Use tax on civil aircraft ------------------------------------- 6,495 5 .655 4,457 4.180

Private foundation, net investment income --------------------- 2,908 8,233 14,112 44.533

Othe0- --------------------------------------------------- 19,026 25,082 28,898 8,21 4

Unclassified exclse, taxes --------------------------------------- 99.297 48.707 -292,283 145.927

92 1 93
Table 3-Internal revenue collections by sources, fiscal years 1973 and 1974

(in thousands of dollars)

Sources of revenu e

Grand total, all sources --------------------------------------------------------------

Corporation income taxes . fault il ------------------------------------------------------------

Regular ------------------- -------------------------------------------------------------

Exempt organization business income tax --------------------------------------------------

Individual income and employment taxes, total ------------------------------------------------

;n111 Com t:1. "01 withheld and self-employment tax ---------------------------------

with held and

11 -------

Railroad retirement, lots

I

.

d-age and disability insurance . total I ---------------------------

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

Unempi Yment Insurance, employers of _ I or

_

more

_

persons

_

at any

_

time

_

in

_

each of _ 20

paid 86 a of $1 .500 r Tore in any Wonder quarter, taxed 3.28 percent . effectwe January 1 .

Fiscal year -

1973 1974

237.787,201 268,952 .254

39,045,309 41,7",444

39,032,707 41,725,250

12,602 19,19"

177,193,715

129,389,938 33 .82'0,06 1 45 .236.920 168,188,65 ,

1,250,859 1,507,99 1

1973 d 3 2 percent, effective January 1 . 1974, an taxable portion of wages ------------------ 1,315,997

Estate tax, graduated rates from 3 percent on first $5.000 of at estate in excess of $60,000 Xemp .

ti .n cit 77 percent on portion over $10,000,000; credit allowed for State death taxes ------------- 4 .338,924

Gift to ., g, led rates fro- 21/. percent on first $5,000 of net gifts in excess of $30,000 exemp.

16,572,318 17.109 .65 1

5,149,513 5 .358.477

3 .755516 3.918 .97 3

736:020 767.384-

'2,971,298 3.115 .0%

34 .873 24 .434.

tiOn to 573/,. percent on portion over $10,000.000 ; $3 .000 annual a,clusion for each donee ------- 636 .938 440,84S,

Excise, taxes. total -------------------------------------------------------------------------

Alcohol taxes, total ------------------------------------------------------------

Distilled spirits taxes, total ---------------------------------------------------

imported (Coilected by Customs rates seme as domestic) ---------------------------

Domestic

$10 50 per proof

g,,in

or wine gallon when below proof I ----------------------

R.ctificainm . iO cents par proof gallon 0 -----------------------------------------------

Occupati nal taxe s

Non beverage manufacturers of spirits, $25, $50, $100. per yea - -------------------------

Rectifiers

Less than 20,000 proof gallons, $110 per year -----------

20.b(~ proof gallons or more . ~220 per year -------------

Retail dealers in liquor or medicinal spirits, $54 per year -----------------------------

Wholesale liquor dealer, $225 per year ------------

Manufacturer. of Still ., $55 per year -------

Seizures . penalties, etc ----------------------:--:----------------------: : --------

Sil"s or condensers manufactured, $22 each --------------------------------------------

84 II S

149

2 l

11,778 101850

6 6 630

738

3

Wines, cordials, etc .. taxes . total ------------------------------------------------------------ 191.025 173PSIS

,in ported (co!1ected by Customs rates same as domestic) --------------------------------- 20,280 19,25S,

Do-IIII, carbonatedI, ,!,nes, I cents . ~7 Cents. $2.25 gperf, 4 if ;in, gallon; sparkling wines, $3 . 0; art ici. y11

twines a . $2 .40; liq . .um, cordials, 1 . 1 - ------------------------------------

Occupational axes :

Retail dealers in

wines

.1 in wines and beer, $54,f2e5r ,or ---------------------

Wholesale dealers In wines or in wines and bear. per yea- ------------------

167 .423

r 2,992

150,399

3,483

374

Bear taxes, total ------------------------------------------------------------------------ r 1,202,973

Imported (collected by Customs, rates same as domestic) - 7,897 91695

Domestic, $9 per b -1 of 31 gallons I ------------------

Occupational to

. :. :

8-surs:

Less than 500 barrels, $55 per year --------------

500 barrels or more, $110 per year --------------

Retail deals

r .

in

bear, $24

per year (includes limited retail dealers in wines or beer. $2.20

hole .1. d

Sol- i

n

Wm, .. .nth)

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

I

1 5

1,480,571

4,659,82 5

52(!

2

2,761 2,48E

682 58

2

Tobacco is,& , total --------------------------------------------------------------------- 2,276,951 Z437 .005,

Cigarette,,,,S*IaI

A -------------------------------------------------------------------- 2

.221,019 2383,038

Small $ 4

Large (Class B~~ grpt

.ho.sand

;~ --- - --------------------------------------------

2,221,010 2:383,018

$6 r th .u. . ; .; ;or if over 61/2 inches long $4 per thousand fo r

each 23/, inches or fraction thereof - ----------------------------------------------- 8

CigarsPrepayments ---------------------------------------------------------------------- 1 2IE

. total

------ ------------------------------------ ------------------------------ 53,79 4

Large 6&.- total ------------------------------------------------------------------ 49,790 49,07

C C , A (Retailin at not over 211 cents each), $2 .50 per thosand' ------

I

a 1 2 ~

:.I ., ,

an not ..

4 cents each), $3 per thou

as d

1.948 f .79"7'

, Cie .. C (Ov ,:r 9,4 4

an

is, not over 6 cents each). $4 per thousand I

7- 8

7

5 8.10E

C :: :: D (Over 6 cents not over 8 cents each), $7 par thousand 7 '996 7,603

C E (Over 8 cents, not over

5

cents each) . $10 par th. ..and - --------- 2126 202 9

Class F (Over 15 cents, not over 20 cents each), $15 per thous nd - -------- 5:1291 6:8729

Small Cf .,. G (Over 20 cents each) $20 per thousand - ------------ 394 44411

cigars, 75 cents per thousand ------ 3:9450 2:48

Prepayment --------------------------- --------------------------- 64 2f

imported cigars, cigarettes . cigarette papers and cigarette tubes (Collected by Customs, rates

Sam, a, domestic) ---------------------------------------------------------------- 893 909

Mi.c.Ilan. .u T bacco ------------------------------------------------------------ : : 4

1

Ciga .Us papers :nd tubes . papers one-half cant per 50 ; tubes I cent per 50 ------------------ 1 .240 1 .47 7

Stamp taxes an documents, other instruments, and playing cards, total I- ------------------------- 44 287

Manufacturer's excise taxes, total ----------------------------------------------------------- 5,395,750 5.742. 1

Gasoline. 4 cents par 6 .11- ------------------------------------------

Lu

b

ricat,ng oil at,.,

6

cents per gallon; cutting oil, 3 cents par gallon il ------

Tires (wholly or in pan of rubber), inner tubes. and tread rubber:

Tires, highway type, 10 cents per pound other. 5 cents per pound except laminated tire. (other than

3 .927 535 4 103 .087.669

:094 105.72 3

type used on highway vehicles) . I cent per pound ----------------------------------------- 753.560

Inner tubes

. I a

cents per pound --------------------- 29

:

604

Tread rubber, 5 cents per pou nd --------------------- 30879

Mot r vehicles, chassis . bodies. parts. and accessories:

P 5-8 TrPart .cll~jund . licce

automobiles, chassis, bodies

bull, .. . , chassis. bodies, tc .,

. etc

10

..

percent

7 percentu- 241

Is 3546 3

,as for automobiles, trucks, etc ., 8 percent 11 -------- : ----------------------- 1017:489

AR:dio .arnd folevision sets, phonographs . components. otc ., 10 percent" --------------------------- 1

,frig to . freezers . air-conditioners, etc .. 5 percent : self-contained air-conditioning units 10 Mr.

cent

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

. ---: ::: ::: : 231

E!ectric, ass . and oil appliances, 5 percent 11 ------------------- --- -----------------

Pistols and revolvers 10 percent

Phonograph gcords,' 1 0 percentr ---------------------- 8,332- 5

Musical 'n-trum. r I "' __

: . .. . .. . . . . . .. . .. . ... .. . .. . : -----------------------

Spurting goods ((Ath ;r 1t%P*I1 .*M. ;d ., rest$, etc .) 10 percent u- --------- ----

Fishing rods . creels, etc.. 10 15.539

Business and store machines

0

Pe

..

Electric light bulbs and tubes

. 10

percent n -------------------------------------------------- I

. -66

768.77E

32 7 1

25:69 0

6.049

519.699

----------------- 120.10

---------------:i7c,

9,100

--------------- ~ ;

------------RFHi

Table 3-Internal revenue collections by sources, fiscal years 1973 and 1974-Continued

(in thousands of dollars)

Sources of revenu e

Firearms (other than pistols and revolvers). shells and cartridges 11 percent

---

41.468 47.754

Mechanics encils . pan, 10 percent; lightens,

0

$,~ P cents per lig~t- ($1 or ri~;Te) I as;

the . - ----------------------------------------------------------------------------- -24 -------------------

Retailer's excise taxes . total --------------------------------------------------------------- 368 .372 416.244

FJ .. . I year1!?7ZI 197 4

Noncommercial aviation gasoline, 3 cents per gallon ----------------------------------------- 10 .246 10.877

Noncommercial aviation fu,l other than gasoline, 7 cents par gallon --------------------------- 23,613 31.955

Diesel and special motor fuels . 4 cents per gailon (in some instance$ 2 cents per gallon) --------- 334 .473 373.414

Luggage, etc . 10 percent 1v ------------------------------------------------------

Jewelry . etc ., 10 Percent 1~ --------------------------------------------------- :--: ----- 26 -

: : ----------

9

Furs, 10 percentui ---------------------------------------------------------- - -- -----

Toilet preparation, 10 Parcenti- -----------------------------------------------------------

Miscellaneous excise taxes, total ------------------------------------------------------------ 3 .041,509 3 .154,037

Admissions taxes . totalio ----- ----------------------------------------------------------

Theaters concertS . athletic contests . etc :

-149 -53

Admissions . I cent for each 10 cents or major fraction thereof of the amount paid in excess of $1 - -120

Lea. .. of ho-, or .. .is,

10

Percent .1 the amount for which similar accommodations an. Sold -------------------

Roof gardens, cabarets, etc ., 10 percent of total paid for admissions, Service., at I,- ----------- -29

Club dues and initiation fees . 20 percent (if d,es or fee, &,a in excess of 10 par year)= -------- -60

- 1

-35

-1 7

Telephone and teletypewriter exchanges services = -------------------------------------------- 1,885 .228 1.692,731

Transportation of persons by air, 8 percent (which was increased from 5 percent effective July 1, 1970) 579,167 659.177

Transportation of property by air. 5 percent------------ 37214 41.931

Use of international air-trvel facilities bi, . . $3 pa, person 44:548 56,908

Coconut and other veg,ta a ruh, processed, 2 Cents per pound repealed, effective August 31, 1963 -------------------- 37

Sugar, approximately half-cent per Pound ---------------------------------------------------- 113 .616 120.006

Narcotics and marihuana, total N ------------------------------------------------------------ 257 188

Narcotics -------------------------------------------------------------------------- 22 35

Marihuana ------------------------------------------------------------------------ 235 1 5 3

Coin-op rated amusement devices $10 per device, per year, bowling alleys, Pool table ., tc . $20 pe r

.Iiey o table, per year A

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

B2

WCoin. . .r.. er p....ted -ice ~.rnlnl d ., $250 par device par year ------------------------ 7.2 6

ta,e

Occupation, per year ------------------------------------------------------------ 376

U We as isg 10 '*%$ ers, part nt . .. "of amount waged ----------------------------------------------------- 5,553

highway vehicles weighing over 26,000 Pounds. $3 per 1,000 pounds per year (installmen t

Usprivileges permitted) . -------------------------------------------------------------------- 188 .517

to, on civil aircraft, $25 per year with an additional 2 cents per Pound on nont-bir . engin e

powered ,or 1,100 P ""its or 31/2 cents Per pound on turbine engine pow=at

Ad ultertod butte and process o filled cheese (imported and domestic), r ;j ~r ----- 19

.293

Ported oleo margarinem ----------------------------------------------------------------- 12

Firearms transfer and occupational taxesin ---------------------------------------- 179

Interest equalization Foreign imiur, Private f - ------------------------------------------------------------------------- " ----------------------------------------------------------- --- 68965 14:650

.u nd,tions:

Not in,estment income . 4 percent --------------------------------------------------------- 76.617

Self dealing, 5 Percent on elf-dealer, lesser of $10,000 or 21A percent on l .und.tion manager ----- 78

Excess business holdings, Percent on foundation -------------------------------------------- 13

T able expenditures, 10 percent on foundation, lesser of $5,000 or 21/2 percent on foundation

F I: !lure to file' cortain information returns, $10 per day up to a maximum of $5.000 ---------- 34

As,essa his penalties with respect to annual reports, $10 per day up to a maximum of $5.000 ---------------------

Failure to dial ribute income, 15 percent of undistributed income ------------------------------- 94

Investments which ieopardize charitable purpose, 5 percent on foundation, lesser of $5,000 or 5

percent on foundation manager_ 340

Unclassified excise taxes --------- a.11 61

6,571

107

6,451

198,462

20,786

3

232

63.328

16,914

69.,!0

29

3

4(18

160

1,64 :

94 1 95
Table 4-internal revenue collections by principal sources, fiscal years 1940 through 1974

In thousands of dollars.

Fiscal year Total

ende d

Jan.30 Total

collections

(1) (2)

Income, and profit taxes

Carpeuratien Individual

income

Incoge

and to,

profit.

to.-

(3) (4 )

1 147,592 982 .017

2~053,469 1 .417 .655

4.744,083 3 : 262 0

9.668,956 6 629:9,3 2

14,766.796 18,261,005

16,027213 19,034 .313

12.5 53:602 11

:704 :

53 6

9.676,459 1 9343297

10.174,410 20 .997 .781

11,553,669 18.051,822

10,854.351 17.153.308

14.387,569 229 730

21,466.910 29 :2974:1097

2

':

594515 32,536,217

2l. 546:322 32,813,691

18,264: 720 31 .650.206

21,298 522 35.337.642

21,580,653 39.029.772

20,533 .316 38.568,559

18,091 .509 40,734,744

22 179414 44,945 .711

21 :764 :940 46,153,001

21,295,711 50.649 .594

22.336 :8134 52.987,581

24,300 63 54,590.354

26,131,334 53.660 .683

30,834,243 61 .297 .552

34,917,825 69.370.595

29 .896 .520 7' 252,045

38 .337,646 97:440 .406

35,036 .983 103,651 .585

30 .319 .953 100,752 421

34,925 .546 108.879 :186

39 .045 .3D9 125.112 .206

41,744A" 242,903,650

194 1 7- ---------- 5.340,452 2 .129,609

94

1 _

: ---------- 7 .370,108 3.471,124

194 1 :047. 59 8,006.884

2--: :-: ::: : ::

23

1943-- - 2371,386 16,298 a .888

1944 ------------ 40,121 .760 33,027 .802

I141_ : ::: : ::_ ::: 43 :8600 .388 35.061,526

1946- - 40 72,097 31,258,138

1947 ------------ 39,1 08 .386 29.019 .756

1948 1 ------------ 41,864,542 3 172 1 1

949 ------------ 40 .463,125 291:605:4991

1950 ------------ 38,957.132 28,007 .659

19 51 ---- ------- 50 .445,686 37384,879

1 952 ----: ------- 65 .009,596 50:741,017

l913 1 69 9 9 :: : :: : ::: ::: 69 :686 5 5 :931 5 0 54:1630 :07 32

954 1 9 43 14

l915 : : ::: : ::: ::: 66:288,692 49.914,826

1 956 75112.649 56,636,164

1957 ------------ 80 171 :971 60 :560 425

1958 ------------ 79 :978 476

59 a

01 :874

1959 ------------ 79,797.973 58 .826,254

III 9~1:774 :0803 67 :125:126

1961 :

94401 86 67917 94

1

1962 ------------ 99 .440,839 71 945305

1 963 ------------ 105,925,395 75 :323:714

1964 ------------ 112,260,257 78,891 .218

1965 ------------ 114,434,634 79792016

1 966 ------------ 128 .879,961 92 :131 :794

1 967 :: ::: : ::: ::: 14 374,115 1 288,420

196 1 23:

. 1

104

8 63 838 08:148,565

1969 ------------ 187 .91 9,560 1 35 .778.052

'9 1 1170 111. l :121:09.6 1131 :688.588

7 1 1647 1 9 3 072,374

1972 ------------ 209,855 .737 1 43 .8 54732

1973 :- : : :: ------ 237,787.204 164 .107:315

1974 - ------ 268,952,254

184,648,094

Employ. Estate Alcohol Tobacco liftifurfic. All

Us- nuot and gift Us- to.- toners, other

tax" ..I. . to..

(5) (6) (7) (8) (9) (10)

833 .521 360,071 624,253 608,518 447.088 337,392

921,8162 41132:05451 110 16 191 7 117 . l'.4 .:O5,7 780:0 7 :373 430,164

1

: 185,36 4 982 771 902 821.682

1491 j . a:705 447,49 06 1 :4 2 646 1: 923857a 504746 1,274,048

73 372 511 .21 618775 988:4 3 503:462 1 .733,655

1,779.177 643 .055 2,309.866 932145 7 2511 2,292,108

1 700 2 .828 676,832 2 .526,165 1. 165 :5 19 9822:672 2,421 .944

:024 365 779,291 2,474,762 1,237 .768 1,425 .260 2,147.184

2,381 :342 899345 2,255,327 1,300,280 2 4 2.206,823

2,47~.113 796,538 2 .210,607 1 1 .321 .875 1 :

:674791 5333 2.280 .969

2,644,575 7 6227 2,219.202 1 .328,464 1:3136 .053 2.214,951

3 .627 .479 720 9:730 2,546.808 1,381

2

83.677 Z392,71

4,464264 833,147 2 .549,120 565,162 2,348 .943 2.507 .9213

4,71B 5 7,:4 3 891 284 21780,925 11 :654 .911 2,862,78 2647.492

.10 6 3 935 20 121: 1,580 2,73,012 a : .229 2,689 .133 2 464,859

6 .219.665 936 .267 2 .742,840 1:571,213 2.885,016 2,018.866

72 5,784 1 .171 .237 2,920,574 6 13,497 3,456 .013 2.019 3g0

78, 3 :59, :122. . 1 377 l~4~.:119 .25 22 :994673 11' 1 7 3 :4 1~6 4,150 .761,925 2.243:856

644 61 734.021 3,974 .135 2,166,675

8,853.744 1 .352,982 3 .002.096 1,806,816 3,958,789 1 .997,292

11,158,589 1 :626 348 3,193.714 1,931 .504 4 : 735 129 2

: 0

4

12,502 :41 .4

1 19 1 6

:392 3,212,801 1 .991,117 4 896:802 1 9063,'35SE12

12,708 171 2 1 .035,187 3,341:2511 2025.736 5 .120.340 2.264 .83.7

5,004 .486 2.187,457 3.44 1 6 6 2 :079,237 5 .610,309 2,278, 536

17 .002,504 2 .416,303 3,577,499 2,052,545 6,020,543 2,299,645

17:104 :10363 3 31:07141 :~ 3 52321 3:8772'437 2 :634 2:141114 6.418.145 2,413,406

20256 a 8~ D73:956 5 .613 .869 1,895 .9 ;99

26.958,241 3,0144 6 4075.723 2,079.869 5,478,347 2,479 .

28.085 .898 3.081 :9079 4:287,237 2,122.277 5713.973 1 2.196,909

33,068 .657 3,530,065 14.555,560 12,137,585 , 6:501 .346 1 2.348,495

37,449,188 3 .680 .076 4,746 .382 2,094,212 6.683.061 2 .380.609

4V..918 690 3,784,283 4,800,482 2 .206,585 16,684.799 13.179, 9

714_001 5,489,969 5.110,001 2,207.273 5,728.657 3 .801, M

52.081,709 4,975,862 5.1 49.513 2,276,951 5395.750 3,750 .1(m

62.093,632 5,100,675 5,358.477 2,437.005 5:74ZIS4 3,57Z2R7

FOOTNOTES FOR TABLES 1-4

a Less than $500.

r Revised.

1 . The receipts In the various States do not indicate the 1*dI1 .1 tax burden of each. sin in many Instances, taxes ad i are I, ", f

State rom IaWants of another State. Far example, withholding taes reported in, b, I i by employers located near d State lines ma( inc . I . . st.nti .1 mounts w thhe from ..Wics of empoyees who reside in neighboring States .

2. Includes to, on unrelated business income of exempt organizations.

3 . Collections of Individual income to. not withheld include old-age, h::pIt,,.1ianSurance taxes on self-errolsu"i'or" =s*.b.71` .YiIm.td P .

oy mt inco ad ati-al totals for individual income tax and for ld-age, surviv- diltibility, and hospital insurance taxes are Shown in the tex and are used in obtaining national totals for irdl~vld it I c t .e.lormc;m .' taxes an emp oyment taxes in table 4 .

4,,Self.. mployment tax and tax, m Ins Since (Tontributions Act are applictilbl'o,'ItId, r IS by.,p.c1otp"Guarm t h

and American Samoa . Amounts of such taxes collected in Guam and American Samoa are combined with similar taxes reported for Office of International OPemtions--Other .

is d I yea, 1957, the United States total I

Beginning with fisca a justed to excude withheld individual income taxes tran l

f,r,,d to the Government of Guam in accordance with theis - Provisions of Public Law 630 . approved Aug, 392) . This Sdj us .1ill, 1950 (64 Stat .

Iment amounted to $13 .4 mi ton for 1974 .

6. Tax payments made to banks. under the Federal tax de .

posil I clud.d I

n the .

for th:y .tem . are win internal revenue collections period in hich the Federal ti~l deposit is purchased . However, (such Payments are not c lassified by internal revenue districts nor by is . S .bcl.Sl .. to *hIch excise to, payments retail.) u~ti~, tbhe, . Feileral to, deposit Payment I . applied I ., the..

taxpayer a a ity in the internal revenue offices from to, turns filed .

7 . Represents credits allowable a . income to. returns far certain gasoline and lubricating oil to, payments and far x . .. S

payments under the Federal Insurance Contributions Act (FICA) .

8 . Designations by taxpayers of a portion of their taxes to th .

Presidential Election campaign Fund are not call actions th d , . as 1"1h;nP.*nlu1ia lh*,Y I.ondnot affect t ..P .ye, 11 -

of Transfer .. is a t . I are made on a natilob n1latly basis anI

:i,nd, therefore, have no offect*on district and regional coll an data .~! .

Ri PIr ` spuu 9 . Amounts of internal revenue to .. . collected

.

.n.d.

'on Piio rilifluendidap dthe United State, or co nin the I=f1re.ns5 newbacks, and expenses) are covered into the Treasury of Puerto R Ica under Provisions of of I~ sec, n 5314(a)(4 7652(a)(3) a d a

the Internal Revenue Code 54 . The gross amounts a)r . Included in overall collection results (Tables I through 4) .

10. Refer to Table 3 for component, .

I Passenger automobiles and light trucks w '; t.1ru."" t.-IsdonD ~7

hic w mines a ecember 11, 11 1 under the Revenue Act of 1971 ; and pans and accessories to

it 9;4 automobile,, re . palled Ijn,,ry tl w and parts and cessor rii.1'66 by Public 1.

ac ies for ks. etc .

12' Corporation Income to, rates : Effective January 1, 1965, first $25,000 of net income normal tax of 22 penent: net - call percentin excess of $25 .000 combined normal and surtax of 2i . Normal tax and surial also apply to net ircom . de .

rived by certain exempt organizations from unrelated trade a, bsurch .sines Effective January dd k* 1. 196 percent per nnum "OL. T arge was a ad to the tax, ( blic w 90.3 perce.ntype,b,,~,n"Lim surcharge was extended 1. ..camb '4 .hre 210 19 9 b Pu c

. 91-53 and then extended to June 30, 1 970 by

Public Law

91-172 at a 5 percent annual refs .

13 - Rate

. .1

tax

is

no a follows : Individual Income tax: Effec.five January 1 965, graduated rates fro m

taxable income' nlt over $500 to 70 P

.rcen 14 percent an

taxable income over $100,000, 1

nc

I

udes old-age, -=nt'dis' I` In ti and hospital insurance taxes on self-employment income . Th e 10 per, nt par dd

Law 90-364 . ffag.e arm-m

v urch .rg. a ded by Public . AlPri I 1' 1968' for individuals, was ex.

tended to December 31, 1969. at the . .me annual rate (Pu bic

Law 91-53) and then extended to Jun, 30, 1970 (Public Law

91-172) at a 5 percent annual rate.

14 . Rates of to, Pro as follow Income Tax graduated with.

Law

89 .36 8

holding in excess of e,empff

.nS!.: Public

July 1 . to 33 percent-PUblic w

. effective

January 1, li?7'0'

ant 14 1 Lis

"'1 14 to 25 Perc:ntu, . A .t.of

19 91-172. effective

January 16, ~972 under the Re n

36

p71.r. Id - .o.nt . H ..ti_

vv.rs. disability and hospital insurance taxes on and ., --

w

g $ 0.8(

a as up to I . 00 were subjected to a combined FICA is, ,at,

of 11 .7 Percent for calendar

y 1973.

to ii

lar

. Effective January

1 . 1974 . the ase was -ed to $23,200 .

15, Consist, If regu

::.dr.,i

1,0 .d retirement combined to. rate

of 21

.2 percent for c

. . years 1973 and 1974. Tax applies

to employers and employee s

wages (limited to first

$900 6fimPm h.*nstadly ctn .11. b,. 1:bcomp . p .rjI- of

.n, . ion

for 1973 and $1,100 for 1974) . Also includes supplemental tax

gn iierrmlyam for compensation Paid to employees, and on

In' me

. each Impl,ye. rap ....ritalwo for compensation m .

.iiived

: at the

to flowing rates : 2 cents Per man-hour November

1, 1966 through March 31, 1970; 6 cents Per man-hour April

1, 1970 through June 30, 1970 ; 7 cents per

"

n

1970 through December 31 . 1970 ; 6 ,, y -

cents par man ~h_ Jtul

ly 1

J~11971 1

th .. . . . no '1

;M1P1,71, 7 .5 cents Par m .n-h . .r after

y 1, 972

. The-fter. Y

.;, .nd

- h:

will be notified of the tax at . ap i.tpl : f

.PrIge, jU*.Pr,1.,r*ntaIi v

by tl

Railroad Retirement Board (P.L. 91-215) . Further includes rail.

road employee representative,' tax of 21 .2 Percent to, calendar

years 1973 and 1974 on taxable portion of wages.

16. issues and transfer. of stock. end bonds. repeated, off I.

five, January 1 . 1966. Dead, of conveyances ; $100 to $500, 55 cents; each additional $500 or fniction thereof, 55 cents; repealed effective January 1 . 1968.

17 . Cutting oil . automobile parts and accessories (except

truck parts) . repea

I

ad effective January I

. 1966

. (Public Law 89-44) .

Ill

.

Taxes on passenger automobiles and light trucks re .

posted Oficem bar 11 . 1971 under the Revenue Act of 1971 .

19 . Repealed, effective June 22, 1965 (Public Law 89-44) .

20 . Air I*ndltilnl- IPI*Ied lecliv. May 15. 1965. re .

frig to,

. and freezfi,~,

lic Law 89-44)

. repcfiad~ :

.active June 2Z 1965 (Pub.

21 . Repeated, effective January 1 . 1966 (Public Law 89-44).

.922 . Repeated, effective noon . December 31, 1965 (Public Law

-44).

23 . This to, was continued at 10 percent by Joint resolution

(Public Law 90-285). an it the Revenue and Expenditure Control

Act

of J

une 286 1968 (Public Law 90-364), which extended this

rate through ecember 31 . 1969. This rate was further ...

tended. to December 31, 1972 by Public Low 91-614 . The rate was reduced to 9 percent on January 1, 1973 and to 8 percent

on January 1. 1974 .

24 . Narcotics, I cent Par ounce ; narcotics order blanks. $1

rc hundred. Marihuana, $1 per -u .nce; Marih .U.B .nua, :rder blanks, ,_i :dnt,.nea1h . Amounts shown .15 Include tional taxes

manufacturers, dealers, and or-tionens . Repeated.

effective May 1. 1971 (Pub 11c Law 91-513) .

25 . Repealed, effective July 1, 1965 (Public Law 89-44).

26 . Adulterated butt .,. 10 cents per pound . Process or revated butter, 1/. cent Per pound . Domestic filled cheese, I cent

per pound, Imported filled h . ., .,

a

centsi .Per pound . Imported

ad 'Iterate butte, and cents per pound.

occupational to, as

- evil m

cturem or dealers In

these products and are Included in the amounts shown ,

27 . Transfers $200 1 of machine guns. Ih .rt-barreled firearms, silenc.

M. atc..

each~ certain g,ns, wth cgimbin Icm shotguns

I I

'm $5

and rifle barrel S, an other p .ci

. ypea ir. :t a,

Occupations axes are levied on manufacturers, import, each

.

dealers in firearms and or . included in the amounts shown

M . o r

28 . By E .Ic .tiv. Ondlemi rate reduced from 11 .25 pame nt to 21. 75

percent On JaruaW jor1171,,gd 1. zero an January 29.

1974 Leg sailne

.th. 'y

the expired on June 30, 1974 .

29 . Negative figures (excluding unaPPliad collections) stem

b

a

an certain to..

primarily from floor stock credits t.k

n

Pealed Y the Excise Tax Reduction Act of 1965 .

96 1 97
Table S.-Internal revenue refunds including interest

(in thousands of dollars)

lat

.. .

. I r.. .nub letters . dliltri .ta,

State. and in. . . . .. .. (State. lapI. ..mail by single districts indicated

in parentheses ; total for other State,

an... at bottom of table)

Individual income and

Corpora . employment taxes

Total ban - E.ive Estate Gift Excise

income or. Other

pay'

nt I

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

United States, total ------------ 28.192,634

NInflh-Atlartic Regio- ---------------- 4,527 .934

Albany -------- (Sea (0 hot ..) ----- 216,437

Augusta ------- (Maine) ------------ 107,032

Boston -------- (Massachusetts) ---- 798,012

Brooklyn ------ (See (c) below) ----- 893,214

B.H.) ------- (See (c) below) ----- 608.307

8

.

rfin~on ----- (Vermont) ---------- 47647

Hartford ------ (Connecticut) ------- 522 :144

Manhattan ---- (See (c) below) ----- 1,094455

Portsmouth ---- (New Hampshire) ---- 97:668

Providence ---- (Rhode Island) ------ 143,01 8

Aflid-Allantle Region ---------- 3.997,090

Be ,a ..=k .-.: : :: ~Ma,yt no anF6_6._)____ 732,494

. . . New J,m,y) ------- 1,139.9 7

Philadel ;phia

S -

(a) below) ----- 938.306

Pittsburgh ----- (S% (a) below) ----- 543.2

Richmond i1ir inia) ---------- 561.27756

Wilmingto Delaware) --------- 81.79 6

Southeast Region ----------------- 3,069945

Atlanta ------- (Georgia) ------- 533:253

Bir ingrain --- (Alabama) --------- 302,778

C.Iumtu T' r - ------ (South Carolina) ---- 237:112

Greensboro ---- (North Carolina) ---- 537 If4

n. flisilt-ippi) 150 510

lack an Florida) --- as' 6'0: 07

Nashville

. . . ..

. (T has. .. . I -------- 42 .

I

Central Region

. .

. - ------------- 4,052:,144

Cincinnati ----- Fi;; (~) below) ----- 609 5 1

Cleveland (Ile, (it) below) ----- 843 622

Detroit __ Michigan) --------- 1,457 :0

1

4

Indianapolis --- (Indiana) ---------- 654,506

Louisville (Kentuck 3716 .198

pa rkersbu (Westvirgi Y) 1 1 .253

Midwest Region ---------------------- 3.794,118

A -dee- ------(South Dakota) ------ 46,439

Chicago,-- ::-: face ~b) below) - : :: : 1,314 :341

D- M.i es - Iowa --------- 273 397

Fargo Dakota) ----- 45

,

430

("Wisconsin) 519,938

Omaha ------- (Nebraska) 152 .862

Louis ------ (Missouri) --- 586,100

w ----- (Minnesota) 512,495

or

-----

SS i -P .,uf.! . I ---- (See (b) below) 323,116

Silull-sl Region Albuquerque 1113 1 '05:106 1

A-tin -----: :- (Sao (f) below) ----- 776,018

Cheyenne -----(Wyoming) --------- 38.772

Data$ -------- (See (1) below) 550739

Denver -------- (Colorado) 328 :608

Little Rock -:-: ~Arkansas) :: : ------ 158:056

New Orleans

_

Louisiana)

.. . .. . .. . 3

58480

Oklahoma City__(Oklahoma) --------- 26B

.

909

Wichita .

. . .. . .

(Kansas) ----------- 229.273

West

.

in Region -------------: : ::: : :: : 1,176 :942

Anchorage ----- (Alaska) 61 1 70

B ise --------- fldahc) - : : --------- 7 5268

Hills r- -------- (Mariana) --------- 68.000

Honolulu ------ (Hawaii) ----------- 134311

Los Angeles ---- (See (a) below) ----- 2,260:794

Phoenix - ::: : :: ~Ari... 1) ---------- 284 .534

Portland Oregon) .an- ---------- Nevada) 283 :517

91281

S :'n' L ------

1,2 .

C "'

I -------- 062

Francis See tat below) % :: ( 1,335 ----- .321

Seattle

.. ... . ..

(Washington) ------- 435,683

Office of International Operations ------ 115480

Puerm Rico 22:680

Other ----- 92,800

G. .. line, lubricating oil, and lw~.7.;

(5) (6)

3,282,094 ?3.423.091 1,146~100 68,769 4 .055

839.234 3.550,520 96,942 16.612 854

12,838 199,657 3,217 557 6

10,157 94.159 2,366 261 15

98,036 681,145 14.402 2.062 98

50 .232 821,562 12,484 2.639 265

52,107 544,026 8.325 1.983 69

2,490 43,345 1 .183 559 13

85.640 413,329 14,545 2,508 34

491,967 552.902 36,490 5,7 1 329

11 981 83,399 20 7 121 is

23 :786 116.996 1:902 181 7

376,055 3,496,806 74.393 51988 785

59,143 651 .780 15 .841

117038 978.555 23,330 2'18, 69 .92 52

93 :710 811,470 16,888 1.398 57

55464 479,016 7,038 41 6

33 :75 514 :476 9 .313 723 1129

16941 61 509 1,983 73 35262

305,997 2,668,470 71400 7,308 470

54,454 459 1 1:481 7 9 89

1411:712 276189 1 6,449 582 25

100, 657 964 2 7.7420 2 4 .071 536 3

420,785 9:113 685 3

7.750 138 747 3588 186 72

69 262 786,186 27,901 3.850 2,6

40:198 368.312 8,797 710 32

450433 3,509,814 63 13 8,592 248

73:990 520,575 10:,807 856 34

64723 762.023 13.061 2 172 65

211:017 1

.

2 9093 2042 1:924 2 7

55, 157 5081 :208 11 :020 2.6 1 114

27.560 280,132 5,757 415 6

10,946 156,783 2,844 604 2

497.805 31111 :379 99037 8,496 338

191 :2 6

'2

520 2:4 62 11 1 3

4 358 1.093,367 28.022 2,9DO 1

28166 234 7 5 9:054 555 281

1 :44 1 41 :8057 2 944 67 14

52,204 454,085 11 .100 1 3 2 57

19,957 125,291 5,789 1:352 45

87,395 46' 8 13:1127 7 8 59

83.300 407 :'0302 20 92 7 a 32

29 .738 283,614 7.347 613 1 2

34' 43 2,3679 801 5 7,627 643

'14

9 0 3

4

6~ 87

2:40

5

2 5 10

111,881 640 .8171 19.386 1,458 368

2329 34.667 1,581 1 4 12

82:045 445,218 18,034 2.068 102

30,944 288 127 8.645 47 3

11,895 141 :469 4,232 2567 15

32 :4911 3 1 3 079 11 .209 1.27 2

394

0

219 :409 8.470 7926 5

32 .499 189,070 6,083 881 23

451,998 4,581,060 119,408 13,303 720

2 .618 5 .885 1,585 1

4 .314 67869 2,780 2 1 0

3,701 61 :044 2845 270 455

19 .587 111 .473 3 :Dlg 1470 13

22477 1,980577 43 :122 5

.584

3 2

25 :4532 251:232 6932 590 307

18,372 256,531 7.689 667 14

4 .260 88.707 3,030 192 1 9

14 .013 124.415 3398 169

108 : 693 1.186.918 31:733 4,710 231

26209 395,409 12 .584 754 33

10.931 97,105 5,698 943

30 20,094 1 72 55

10 .901 77,011 3:9708 788

FICA credits ------ 653958 ------------------------- 131,106 --------------------------

Bureau of Customs ------ 1 :208 ------------------------ ---------------------------------------

Totalli for States not shown above

(7)

268 525

Z3:7 ;if

163

76

2,268

6,0" 2

1 .71 7

;is

60118

7 :01~~26

146

43,062

4,7 ; 5

18.4 9

14,8: 7

I'm 2

2

'81 0

9 .

1611! 9

6,5 : 3

2! s

5 '11 *.14 8

IX2

1 .9! 2

"

1

3 :2,149

1

7 'is :,5,,9

4 386

2 :32

74'

27,065

97

5 .607 889

108

11190

429

15 , 8 1

3

1,141

1,791

7 .962

76

2 .108

49

3,272

378

188

481

693

71 7

10,45671

91

9 6 .0

5 .713

291

244

74

67

3

'03

4

695

903

7

2

12 1

118,752

1 .20

Z California (b ------- 3,596.115 333.472 3 4 5 75555 10 .294 553 8.747

(c, - 116 '0is ---------- 1,647 45 2 7 2 4,096 . 1 :376 98 "': 1 35 369 3 9 .513 1 7393

New Yolk ------- 2,81241 07 : 3 6 600 1 5 1 .144 2.118.147 60

2 14

.516 10,920 69 .018

1(it) .) 1 Ohi - ----------- 1 .453 173 38:713 1 91 3 L :2 118 " :91~6,1 3:12 :868

4' 1$,, 6029

Pennsylvania ____ 1,48

:616 49 174 2E4 23

(f) 1

Te --- ---------- 1.326,757 193

.926 1

1 9.086.035 37.420 3.526 4706 5 .380

Figures have not been reduced to reflect reimbursements from the Federal

Old

Age and Surri-in. Federal Disability, and Federal Hospita

I,su, ce Trust Funds amounting to $535 .206,000 ; from the Highway Trust Fund . mounting to $123 .178,000; and train the unemployment TrustI

Fund amounting to Net $25,878,891 .

of 77,116 undeliverable hacks tot. ling $20,866.000 .

Includes c ecilts far excess Social Security payments under the Federal Insurance Contributions Act (FICA) of $535.206,000 .

Include, c red is for certain gasoline and lubricating oil ta, payments .

Less than

500.

Table 6-Internal revenue refunds issued by regions, districts, States and other areas

Internal revenu, legions, districts,

States and other areas. (States represented by single district, indicated

in parentheses; total for other States

shown at bottom of table)

individual Income and

Camara- ~ employment to'es

Total thin Excessive

Income pre, Other

Pay be I

carcin. Gift E. .I ..

(1) (2) (3) (4) (5) . (6)

- United States, total ------------ 65,798,713 318.836 63,253,803 2,122.343 22.747

North-Atlantic Region ----------------- 9,800,973 57.937 9,391.660 329.913 5,019

Albany -------- (See (c) below) ----- 577,232 2,669 554,596 19.119 283

Augusta (Maine) 323321 1,740 310.082 10.939 124

Boston --------- (Mzasach~;git;T-:-:- 1,946:843 13.247 1,870.464 61,075 801

Brooklyn ------ ~S a b 1 .11 ----- 2:143,48 . 7.438 2,075,323 58.295 1.037

B .ff .1- ------- S: a b: ----- 1 506.356 7.537 1,453.884 42.955 686

Burlington ~Vlimrort)

. . .. . . .. . . 1

49,846 947 140.935 7,740 55

Hartford cars

------- 1

.105.125 5,859 1,055.002 41,106 607

Manhattan ---: (CSe. (~~)tib'eullo)w) ----- 1,417,829 14 .449 1,324.621 6929 1 .24

Portsmouth ---- (Now Hampshire) ---- 262.214 is 0 25001 5 9 :9440 96

Providence ---- (Rhode Island) ----- 368,719 2 :201 356:738 9,450 90

Mid-Atlantic Region ------------------ 9,802,473 47,5112 9,477,032 264.874 2,616

1 Illinois __ :: :~.1.aWryj11nd.11d ..C.) :_ 1:700 :144 6.723 1.650,728 41 26 396

N'.

..,k

.

. .

. _ ') ----- - 2603208 20,406 2.491047 88 :157 1.1 2

Philadelphia --- (See (e) below) ----- 2.37 624 8 .976 2,304 :938 58 , 528 507

Pittsburgh ~1 (a, below) ----- 1.396 : 4,149 1,361 838 2

13 : 7

4 2 1

5689 8

7

Richmond Virginia) ---------- 1,539 7 6 5,602 1 .4 9: 89 4 0074 2489

Wilmington ---- (Delaware) --------- 187:082 1,726 178.692 5 145 1

southeast Regan -------------------- 9.049,019 37066 8,712,907 288 :660 2,581

Atlanta ------- (Georgia) ---------- 1,452469 6:028 1,400,750 43,888 263

Birmingham _ ::~Ahibilmu) --------- 952~612 2

.9

52 922:28 1 26 .440 145

olumbi ---- South Carolina) ---- 805,508 2.876 78 1 604 2 178 177

'

:

8

Greensboro ---- North Carolina) ----- 1.589 .963 7 .464 1 .535 .55 1 45351 293

Jackson ------- (Mississippi) 36,555 1,760 516,842 1 7 , 29 ,uti

Jacksonville - : :: IF orlda 1, ---- )::--::: 2,4517 .478 11 .561 2305.582 97.112 3 1

Nash'i -_ (Tennessee) -------- 1.294 .434 4.425 1 :250 .297 38.393 276

Central Region 9,407,296 37~558152 1,412177:345114 253, 027 2,"7

C ncinnati 1.475,658 6 40 .387 445

Cl ... I nd_:_: ::((l11 d) below) ----- 2.036,885 9.245 1 .973,670 52.379 491

- _ 1 1 74 .283 733

Detroit

1 __ Michigan) --------- 2.883 . 99 11370 2 .794,64 5

Londian-polis _ : ::~Indlana) ---------- 1.62 806 5:026 1.5760 5 46,797 438

uisville __ Kentucky) --------- 89 692 :13 3.3 860 3' 46 : 79 27.301 5862 4

Parkersburg --- (West Virginia) ------ 4 89 .612

1

.940 475,324 11 .88 0

Midwest Region ----------------:_ %_: : :: 1619131 50,311 8,700925 345,973 , 3,483

Aberdeen (South Dakota) 2 :594 859 14%:

11

092 12 33 72

Chic Ise,( 1(b) below) ----- 2,819 .144 13,688 2,723.714 7 :773 955

Des M .91ru------- (Iowa ---- 763,524 4,137 715 42 070 460

Fargo North Dakota) 149:035 644 136 8 11 939 67 :21 0

Mil. k ..

. .. . .

(Wi .. .nsin) - _:: : :: 1, 378766 8.354 1 .311.940 49

.

561 495

Onnea- ------- (Nebraska) : ------ ,42 641 2:743 1 .39 1 .136 25.900 241

11S': IPau *"1, ------- 400:847 1 0 1 16 337 1 .

:131 50 507 9

I Mi ota) -------- 1,1640.489 6 .306 114 32 4 il': 7''197 337

Sprir ;uild ---- (See (b) below) ----- 850,498 3 .464 8 1 4.052 3 8~, 349

Southwest Region -------------------- 7,5 715 3561 7,241.754 259A49 2 .~13

Albuquerque --- (New Mexico) ------- 370:280 1: 1 61 304622 122

to Austin -------- (See (f) below) ------ 2.037,479 7,931 1.963:042 690:67 6152

1 5

Cheyenne ----: ,W,omin,) 108.971 884 102.364 5.4 84 51

Dallas ------- See

(f) hot 1.

449,068 7 .2 20 1 .387371 52,214 507

Den er -------- (Colorado) --------- 811,828 4 .411 7 7 5:893 30.543 1 96

Little Rock ----- (Alkim-) --------- 515 674 2,514 494 367 18.015 2

New Orleans --- (Louisiana) --------- 965:673 4 .608 93 1 :95 1 27,852 2502

Oklahoma City -(Oklahoma) --------- 723,865 3.486 692 . 005 27,202 34

Wichita 1 -----:-(Kansas) ----------- 622.877 3,423

590'1 39

28 .347 314

Western Region ---------------------- 10,887164 62 10 8 U 5 .40 10.46ZSSI 358,993 3,969

Anchorage ---:_ IAI.Islal ----------- I: 45 6476 9 3 4 : 3 3 12

0

___ _( h 1.20

auu.. ---- Id o) ------------ 21 205 4 12 282 17

9

211 6 190'1 12

Helena ~1-1,in)hl 204.521 1,607 0:32D 01

H.nalu lutes ----(Hawai 284:010 2.00 1 273 .477 836 4

Los Ange See 0) below) ----- 4,194042 20:077 4 .052 .182 117 .739 15,

Phoenix ------- (Arizona) ---------- 654,250 26 6 628,797 22,144 88

Portland -----:(Oregon) ----------- 7 1 .225 4, 116 756.721 29,305 27

Reno (Nevada) ---- 211 549 994 203 266 7.068 4529

Salt L,ke City ::((Utah) ------- 3 54:079 1,451 340~3138 11 .868 2

SoSeattle n Francisco See III) below) ----- 2.776,926 12.044 2,669,090 91.312 1,2931

--------(Washington) 1 .095,506 5.579 1 .046 .470 42.252 3 3

Office of International Opera Ions 181 .535 383 1591SIO 21,454

Puerto Rico ------------1 40701 1 7 28675 12 002 1193

Other ----------------- 140 :834 366 130:835 9 :452 11 6

Totals for States not shown above

(a aIII" ------- 6

.970,968

(b~ lCilm.'s ---------- 3669642

(

.) New Yo'k_-

:: : : : : S .:644 :.905

(d) 0 hil - 3 512543

(a) (f) P nns Ivania ---- 3.772.313

T :xasy ---------- 3,486.54 7

I Net of 77,116 undeliverable .fund checks .

32 .121 6,721 .272 20 051 2,849

17,152 3,537 1 6 111 :664 I.3G4

32 :093 5408,:424 189 65 3,246

15830 3 :401021 92:7696 936

13, 1 25 3 150:1561 87232 :776 748

15 . 1 33 413 112:884 1 .159

(7 )

3,196 67.798

634 15,81 0

12 553

13 423

103 1,153

115 11280

91 1 .2 3

7 162

64 2

.48

7

206 8.023

10 349

13 177

388 9 70 961.98'.

124 23 2

52 3:6323

39 718

75 897

28 1 .4

S

o

434 7.371

59 1,48

1

25 769

IS 6 5 72 1,225

33 51

3

1 75 1,737

S' 9a 1

31 1 ,535

54 83~

67 J'3~

79

2

6 1 1.0'9389

3' 111 8

12 37 0

474 8,372

1 0 308

112 1, 52 .

46 1, 101

7

1 .2 0

7 338

47 17

so

1 .42

43

1 .1 5

4785 1 6910 ,

24 .88' 27 1

131 5.05 3

16 272

94 1,66'

54 73 1

24 634

27 9"

69 762

39 615

472 8,7 2

2 138

14 295

14 361

19 1 0

9

168 2.318

34 4

1

39 765

8 172

1, 30

126 3,063

385 834

1 643

4 6 1

294 5.381

163 . 2213

424 11 :059

122

1 .8"

91 4 .34 1'

225 6.71 5

98 1 99
Table 7. Number of returns filed, by Internal Revenue regions, districts, States, and other areas .

Internal andrevenue l . , =sjShxd .trlltl .

state. the its P.

Frep:,n.ted

by

ri single districts Indicated

nth .ses; total for other States

shown at bottom of table)

Estate Gift Excise

tax Us t . ..

(1) (2) (3) (4) (5) (6) (7) (8) (9)

U

nited States. total------------- 121,609,260 -81,575,146 2,587.906 1,118.318 9,727,256 24,794,221 211,540 252 .653 1,342,2-

Nortb-All .ntic Region ------------------ 18,466047 12,034,197 527,233 120 1,644870 3,8110,01)9 4Z658 48,996 167,1

Albany -------- (See (c) below) ----- 1,056:883 7D4,271 28,377 101,33 81 :097 214,816 2.754 2.196 13 .23849

August ------- (Maine) :17 '3680:148 114549 4 175 46503 133 .450 1.041 1 214 10 .091

Sr lb

Boston 3 .559116 5431 2 3 5497 07:138 23:737 331 :338 650.694 5,917 8:248 23,974

::.Iww~

.. . .. 3 ,

4 :832 2 1 l~633, .651 112,299 27,802 287 885 753,076 9,835 5 2 9 5 .736 24 41

u*",Y S ----- 2.6'6 79 83 .968 66 .07 24. 77 1 6:849 4

:1

. 11 .1 - ------- IS: b 2~323 6,142 5.610 2

933

Burlington 307,343 191,752 8 .572 3.281 24 .447 73 8 494 754 93

-:: ::: ::

.0

60,411 3,066 225 .212

14 17

MoWord l'C*o' ne't'i) . u~) 2 91317 75,832 391 4 .5'32 4.399 6,343 7:0 5

P

I

(S:, 10 below) ----- 3.3 7 : 600 1 779,984 189.157 16967 37 2 :0 5 983.747 0.323 171 :0 6 30 .141

(1, rimpshie) ---- 479.711 312 319 12,919 4 :0 3 3074981 104.156 859 006 6 .948

d"

1

Providence ---- (Rho elsland) ::-:-: 11.237 454771 1,1 .7 3 .439 43 .963 118,247 894 843 3,969

Mid-At',nti, Region ------------- _ _ 1, .667,428 11848,871 2119 .766 157,014 -1,894,324 3,319,596 31,032 29,999 147,826

Baltimore N ----- (Maryland and D.C .) :: 2:960 :509 2 .:048,239 67 .348 35,929 227 .851 550.209 4.283 5.662 20,988

. "'k ~SN

may)

----- 4 727 384 3 196,753 148,171 11,693 366 .121 949,7585 11 " is 34,295

Phil,deIIpWi- w : :: a (ee) below ----- 4 .191,888 2,857 :4 793 379 53,382 6 .377 764,9 6 7: 37 1 26 :230 33973

P ttab.rgh ----- (So. (0) be owl ----- 2.368,615 1,665 547

'W 2~ .4.

Ih !4,575 34.808 194 :2119 420:11 5 2,859 3,154 2

Ri mond ----- (Virginia) 2 .701 IS 56 3 ~ :8~77 1 .851,985 !j8,671 17,821 1 15 1 02 3,631 5,450 2 002

Wilmington ---- (Delaware) 35 2 8 228,887 9,357 3,381 30,646 72,449 627 952 5 19

Southeast Regio At --- ----------------- 16, 67 .919 11,211,513 347.090 150546 871,201 3,845,192 23,132 36,195 196,550

.I,Irml, K . Ing ri~. (A ---------- 2,5617 .543 1,734 .024 56 .787 24 :639 99 .813 615,612 2.553 5.598 28,517

Col, . . . .. . lab-ma) --------- 1.688,66 1 .159090 30 .013 12,735 67 :594 395.100 1,408 2952 768

mbi (South Carolina) ---- 1,400,9670 964 :744 28.250 11 .649 51481 322.260 1.596 239 1 1'1 .596 :

Greensboro ---- (North Carolina) ---- 2.907 .678 1 .943,121 70,093 25 .708 172 :7610 6 :1 2 3,3 6 5597 32.923

Jackson (Mississippi) ------- 1,036 :677 682,778 18.254 9284 42 24 256435831 9835 1 :898 17 '1.7

Jacks,njli;--: : (Florida) ----------- 4,787 890 3,133 .353 142,916 37 :346 306,217 1 .101 .313 11,119 13 .930 41 :6

.

Nsshvill

. (Tennessee) -------- 2,325,065 1,594.403 43,328 29,185 131 .188 493,294 2,635 3,829 27.20 3

Central Region

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

16,248,760 11,355,209 343,549 128 108 1,200 "8 Z972 906 23451 26,510 198,579

Cincinnati ----- (i

1

S :: ~dd~ b :.,* 7 .~ -_- ::: 2:6 2,924 1,840 .590 59,71 19 527 19835 44 315 4 :127 4,442 27,855

Cleveland b: _ 35306.138 2.459,476 97.173 27 .630 278,542 624,744 8 5,388 5 .519 37.666

Detroit ~Mic igar) --------- 4,754,519 3 .336,867 126 .616 38,245 339 .898 842.320 5 .320 7,245 5 08

Indianal;;F.;-: :: Indiana) ---------- 2,885:123 1 :0 9 847 72.332 1 841 212,108 523~040 5 .284 5,163 38128

1,664

a

:

i

L uisville ------ (Kentucky) --------- 62 1 1 1 7 570 36,017 766 113 1 B: .738 354,266 2263 2 .935 22,307

Parkersburg --- (West Virginia) ------ 871.019 590 .859 18.225 8 .099 57 .725 180 .221 1:069 1 .206 13.615

Midwest Region ---------------------- 17,571,830 11.787,736 403,127 194,589 1,417.51 3,4al,923 41 .931 42.553 212,460

Aberdeen ------ (South Dakota) ----- 397.732 243 .885 10.732 8,1 53 28,352 95,411 1 :103 1:317 ":7~16

Ch (See ~b) below) 5.148 .191 3 .498,418 117,834 49 .400 572 .5 7 857748 991 5 . 0 6 , 6 316 3

.ei"'dr~W :::: (Iowa --------

: : ::

: 1,779,735 1,094,453 41.822 19,922 212,3960 374 :064 6,117 5 .269 25,698

Fargo 1 M , (1111 Dakota) ----- 372,809 228855 11 '25 5329 24,977 91,341 1 :246 1:2

29 1

iviw.'W;~ :0 7

(Wisconsin) -------- 2,735263 1,771 35 72 15 19 5 9 66 :6 :3 20:591 302 .376 518,700 6 0 !59 37 8

Omaha ---- -- (Nebraska) --------- 936:361 583 .582 28.188 10 199 77 .177 212 .764 3 .069 4,390 16.992

St . Louis

. . .. . . (

Mi so.,!) ---------- 2.778 5 2 :764 37 68,452 25 :320 309,309 2 5 564,684 4 .507 5878 36.G42

St. Paul ------ (Minnesota) -------- 2,184:039 1 472 9500 66,016 29,085 9.030 418.673 5,007 3:863 29.415

5.SpringfieldCc -- (See (b) below) ----- 1 .748,302 1,129,585 31,107 16 .590 195.333 348 .538 4 .948 3,962 18.239

uthenest R, ------- ----------- 14,919:210111 9,789 :17 -224,132

. 6

312440 1423 1,096405 3,305,828 21,397 36,780

Albuquerque --- (New Mexico) ------ 573 9 382 10 1:867 4 :96501 36:760 128,455 547 1,069 7,4 2

Au :tin ~1- (1) bel . ) ----- 3.756.731 2.504,977 76.878 33 .228 259.297 916,064 4,75168 9623 51,94 6

Ch yen Wyoming) - ------- w 234,564 142,022 6,509 4,156 18.285 56,907 3 1'655 . 5.274

(f) b 1. 1 ----- 2,971 .711 1 .867.305 69,553 33 .255 230,957 713 .554 4331 7.542 45 .214

Denver ~S .I-do)e -w 1 497,865 987,359 43,358 18 .802 117,110 307 .224 2:335 3,607 18.070

Little Rock ---- (Arkansas) 1:042.702 1 .675 .401 22,030 9,977 72,275 242 .724 1 :0161 1:242 146 :9~67

New Oheans~ a --------- 2.060,855 432,842 44.587 1 0057 119,236 424,925

1 7 1

kid C .t,: : ii-oui ion.) 2 2 50 2 45

0 home Oklahoma) 1 .417.7.6 940,726 37.1 4 12:201 113,756 321 .804 2 752 4308 25,035

W,, hits .

. . .. . . (

. Kansas) -- l349,496 856,434 34,957 15,733 118,729 294.171 3.511 4 , 832 21 .129

. .t.- Region --------------- 11,1613:73. 13,f99 7152 412,591 234,429 1 .566.159 3,8201 0 26,708 30,985 20 5 4

Anchorage ---- (Alaska) ---- 1 8273 14: 39 4.794 NA 7.037 37

:071 98 177

4 :509

But .ril I (Ill,h,) 4311301 2.Z609 12,633 NA 30.2,7 101 .1580 643 1,049 9 .827

: Moman 451

1 .

5:1983 276.757 13.868 9.918 35.968 106,341 082 2012 13 .037

H-1 - - ------ (H .wsii) ------ 50 5 347:390 17:277 5,548 43,600 87:25 503 1:179 2,843

I'

. , '9

Los Angeles --- (See (a) below) 7 285 68S 4 71355 1 119 421 79.734 590.742 1,365 575 9,439 8.104 51 319

Phoent - ------- (Arizona) 1 :11:79. 790.766 2s. .08 91101 95.569 223 '033 11598 2.691 12 :232

Portland egon) no _: : :: : :((Oev . f 469295 9B2.436 42.625 5,029 112.533 289.406 2,240 3,0159 22 0 7

Re -- N )Is) 362:177 246:113 9,944 4,158 23:523 69.794 367 77 6:853

S-11 L k, C

Ityn _ : ((Utah 615780 412043 17 191 12,421 38288 123,345 582 1 :4347 10563Sa Fra isc. 086 73,800 430.27 1 - See (a) below) ----- 5.108,947 3,432,354 128: 985,425 7,363 7 65 44 18

Seattle

------

(Washington) ------- 2,02R. 224 1,341,940 59 .238 24,720 158 .361 411 .834 2,793 3 '167 26 '1 71

Office of ,niernational Operations------- 570,320 348,592 3,110 372 46,338 168,597 731 635 ;,945

undistributed:

Puerto Rico -----------------: :: : : : 234,309 69,874 479 38 39,496 1539 1 29 60 :392

Other ---------------------- 336,011 278,718 2,631 334 6,842 1 4 :656 702 575 1,553

I"dllld"*l

Total

tax

corpons,

tio, Partner.

ship

Declareif.. o r

estimated Employ'

ts, and nh.mt

111= i n t . . x

t . ..

l

a 12 3 4 636 8,403.709

al Clllifnifo%mia 6 :8996:493 4,62B.003

lc)) N -w York ---------------:: : :: : ::

10945 .354 6.953 .87 4

Ohio -------------------- 6:139.062 4 :300:066

le) Pirrin.ylvarti- -------------------- 6.560.503 5523007

f) Texas --------------------------- 6.728,442 4,372.282

317 .507 153.534 1,021,013 2 .371,000 16

'2

1 56 95,502

148,941 65,990 767,900 1 .206.286 14:863 N4 :5791 41 :.131

415 .9 10 79,179, 935 .926 2,403,962 29,0- 30 . 5

.

. 96 61

156 .884 47,157 476,899 1

.073

.059 9,5 15 9,961 65,521

1 13,368 88:190 573 .506 1,185.851 10,575 9.385 56,621

146 .43 1 66483 490 .254 1,529.618

9,049

17,165 97.160

1 :1, d nc :S1 111,111d tax d-I . ..thins not available by districts.:"

.d Form 7004 . 7005, tentative 1120 L and M, and Forms 990, 990C, 990P and 990T not available by district. gz, .

.d as Forms 4638 not available by districts .

-Forms 104OX are not Included.

I

Table S .-Internal Revenue Collections, Costs, Employees, and U.S. Populations, 1945 through 1974

Number of employees

Fiscal operating Collection. Cost of Population Tax Total National Field

If.. . cost collecting (Thousands) Par Office

(1)

$100 carift.

(2) (3) (4) (5) (7) (a)

19 5 ------------------------ 145 .390.720 43 800 387 576 033 140468 11 .1 : ~' 52 49: 61 sl 4 :441 45 .373

1111 ---------------- 174 .795.640 40 :672 :096:998 0 :43 141:936 28

19 ,

1 9 7 ::: : ::: 144 54.549

: ---------------- 203,916.822 3 10 ~31 1 7 5.742 052 144 :6 8 270 :3191 52 331 4:6771 48,059

284 1 1 a 08

52:114 4

19 8 -------------------- 183,731,060 41 :864 541,215 0:44 4 29 .~62 47 .481

949-------------------- 209.205 .715 40,463,125,019 0 .52 149,767 270.17 52.266 4 54 47.712

1950 ----------------:: : :: : :: 230,408,200 38,957.131,768 0.59 152.271 255 :14 11595 51 4 :0313 51 .24.

1951 ---------------- 245,869,538 51 71 57

:, 4

5:441 0.953,13 :611 561 .1 0 142 154 l 5:1713 325 30 53,765

1912 ------------------------ 271 .872.1s2 .

D14

I~53 268 57 5 412 .62 15,171 3 :.141 191 :.528

.590,806 69.6 6.535,389 o.38

I

60.113A 435.00 53,

463 3 34 4

29

268,969,107 69,9189.990.791 0.38 163.026 428 .89 51,411 2,707 48.704

1955 ---------------- 271:1344 89 710 75 :211 11 11 : 1 :6.991 :10 1:,4.2 161:131 399.50 50.890 2.675 48.215

1956 -------- : ::: :: : : .. . ... . . 299

'f2 000 0 168 903

444 .71 50.682 2.583 48:0 9

1957 -------- 305.537 .814 80.171,971,000 US2 1 57 171 :994 416 :1 6 51,364 2.602 48762

1958 --------------- 337,428,789 79,978.476 484 04 174.112 4 33 50.816 2 63' 48,178

1959 --------------- 355.469 .228 79.797,972 :806 0 44 77 830 448.73 50,200 2 :633 47.567

1160 ----------------------- 363: 279351:2335 .9 941 :4774 .02 :3823 '961 .40 1806 1 507.96 50,199 2.702 474 7

: ----------------- 4

3 ,:086 98

O~44 .3:691 51391 53,680 3.031 50:649

1962- : ::: : ------------------ 450,080,420 99,440,839 245 0 :45 1886.538 533:09 56.510 3,357 53.153

1963 -------------- : : :--: ---- 500,804,314 105 925:3 5 .~281 0 .47 2 9:2 2 559 .74 59.486 3.562 55924

1964-------------- -- ---- 549,692.131 112:260 2957 115 049 19 1889 585.03 59,357 3,753 55:604

196ii ------------------------ 597.387,471 114,434.633 :721 342 0 :.528 '96194:3 3 588.95 60.360 3.790 56.570

1966 -------------- 624:0111:s29 128,87%961 198.5,10 655.6B 61.689 3.816 57,873

1967- 667 80295 148.374.814.55 0.45 7 2 746 .68 65,122 4 .060 61 062

1161 699,190,304 153.636.837 .665 0 .46 200

.

~~69 706 76548 65,177 3.939 61:2 38

: ----------------------- 758,785 .475 187.919,559 .668 0 .40 202

.

677 927:19 64,507 4.037 60.470

1970 --------------------- 886159,162 195,722,096 19 98 .497 045 2 .875 955.31 , " 4 :356 63,742

:065 .297 191.647.198 .138 0:51 2047045 925 :63 HUN 7

4

521 64,466

--- 1,1271,390,411 209,855 .736.87 8 0.54 2080 :942

1.

00485 74.086 4.823 69 .263

1973

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

: ... . J.1

62 .009,945 237.787.204 .058 0 .49

,

21 0 396 1.1 30.19 171,846 4 .646 167 .200

1974------------------------ - 1, 3 12,894,661 268,925,253,663 0.49 211:909 1,269. , 9 . 78,233 4,685 73.548

Revised .

Includes 2.079 for Economic Stabilization Program.

Excludes cost for Federal Energy and

-

EC F%cpriomic Stabiliz tion Programs not included in IRS Appropriations .. .I.

udes 71 National Office and 396 iel employees in the Econ Stabilization Program .

100 1 101
Table 9 .-Number of returns examined by class of tax and by Internal Revenue regions, districts. and other areas

Region, center,

and district

Individual

Total and Corporation Estate fiduciary Gift Excise Employ'

ment

Exempt, P.-i0""U"'n- trust

2 .187.864 2,766,886 134,290

381.007 300,590 34.402

275,661 220,747 21,019

323,146 27ZI35 13,787

228,254 176.274 14,785

273,488 215946 ItO27

311 .215 257 :711 1 63S

372 .991 305061 19128

Z2,202 18 :522 '507

47,729 IIA70 98,348 MS32 20,487 42,122

94:816 2.010 11,073 8,916 6.767 8.433

4 944 11555 10,535 8,181 Z566 11314

6:133 1,644 IZ176 11,652 2,239 41581)

29 260 13,316 IL413 Z690 5,3117

75 1538 1 66 .206 10910 ZA56 5 939

Total -

North-Atlantrc--------------------

Mid-Atlantic -----------------

Southeast ------------------

Central

Midwest --------------------

Southwest -------------------

W .

.t

.rn, .

Internet

North-Ati-mic Region:

Albany -----------------

Augusta ----------------

130"

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

,.unfil - ----- r"Y"

ij, Bu rl 'ngton --------------

tf.rd ----------------

Manhattan --------------

P n,m,uth -------------

Providerc or - --------------

Andover Service Center ---

.i .d Brookhaven Service Center

.Atlantic Region:

9 -

It.-- ---------------

Newark ----------------

Philadelphia -------------

Pittsburgh --------------

Richmond --------------

Wilmington ,n;Fc7j-45W~;

Phil.delp is

r

Southeast Regio m

Atlanta

Colum . .. .

Greensboro -------------

J-'-nv,

F

j

.ks. n

No"" Ile

Atlanta ----- ---------

So .

rvic . (5

an Memphis Service-Canto .. . .r . . .

Centin*I Region:

Cincinnati --------------

Cleni d ---------------

Detroit

Jndianap;fli-::-::: :

:: : :: :

Louisville ----: ----------

Psrk~rsb.,S ------------

Cincinnati emice Center

Midwest Region:

Abgrdeen ---------------

DoC "' . '

Fargo ----- : ------------

Milwaukee

Orn .h .

S "T t Pa .

Springfield -------------

S

.

th~anstaiRCi!y Service Center

ou =.aegion:

rq -- -------------

Austin -----

Cheyenne

Dallas

Denver -----------------

Little Rock - ------------

law 11 .. . .

Oklahoma

City

Wichita -----------------

Austin Service Center ----

Western Region:

Anchorage ..Iso . ...

an ,

..n

.l .hi

Los Angeles ------------- Phoeni Portlandx

Reno

Sell Liske City --------------- -------

San SeattlFrancisco e -----------

Ogden S.

Fresno Service Center ----

52

.:715'

3 3

17,023 14,167 644 629 85 966 532 ----------

9:

134 7,484 737 134 14 421 344 ----- !16 894 36.746 13,388 1319 248 2,299 1232 T.42 11: 21 .107 11:121 1 3

7

39 325., :3 6 2 :004 28 2.537 1:731 ---------- '1

2 347 1,577 1,125 ---------

7'

1

27:994 23 33'

l.2 6 9 8 29 3ol --------- 4 '7' 3:6 47 5

97.816 74701 107 1

160 273 Sol 652 ----------

7,700 6:563 23

3:241 69 1 1,79

556 88 27 77 2,558 4,105

2 6 190 ---------- 9,266 7,842 741

7,828 128 30 270 251 ---------- 7

7 .041 7 4

1

51,229 41 .545 3,856 795 277 1,876 1,352 1,528 78 .564 61,144 4

'0' 1 55 03 3

: 6

:623

94 496 3 .617 2,910 ----------

626 111 261 1:,511 1,299 1,038 ROU

41,240 34

22 :109 i,S :. 5765 2 s5 , 53 978 ---------- :412 2:29 651 207 2,104 1,217 ---------- 9895 4

9~ 3

4 197

1

4:931 4~931 ------------------ 23-

41 196 425 -------- -

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

:_

47,941 38 .748 1,706 466 268 2,731 1,783 2.239

29 25,681 1,025 266 123 1,137 2,443 ---------- 241

3 '69 '90 363 57,045 49 771 831 ---------- 47 2'50 89 :0 742 294 2,594 822 2.104

---------- 29 1 :6 1 18,710 777 284 ill 685 1 .094 ---------- 3639 80,149 4.299 2,073 679 2,977 3,462 ---------- 33 .507 26:,1,4684 2,186 739 12 0

7,448 7

. .. . ... . . .. . .. . . . . 1,281 2,217 ----------

3,177 3.177 ------------------

29,285 20.899 2,551 11061 172 11918 1.686 998 49,842 39 .121 3.899 1,575 418 2,348 1,754 727 0 43

1

77 :912

47' 3

3 `0 369 299 714 965 24 53 2:3210 1 N46

17 5,

20,322 15

4 :0 3 1,874 1 :

.772 1.530 583 1,319

10167 7244 1205 210

392 1,237 10

0 832"

4:706 4:706

. .. . . . . 6

S a

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

4.770 3.346 295 183 36 326 5

80739 68.247 5420 2.0 336 1.902

984

------- H6 1 9 :902 13,125 1 :458

997 1, 37

6 19 1

4 .972 3.897 193

2 489 2.40 1.753 ----------

34 .244 28,285 2.595

28 165 441 ----------

17

.428 631 208 1.31 1,2

12 .785 2,203 877 250 1,33.2 l' 45,592 35 .256 4,480 1,097 171 2,182

17 9

240 516 15 :171 19762, 9 1 1,526 880 :8 7 154 69 3

2 229

164 632 929 776

15,311 15 .311 7

4 26 952 1 .548 ---------

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

8.852 7.757 270 115 50 42 236

78011 64,148 3 .166 1 .422 402 5,431 2.500 ------- 5jj 3

:096

2,498 140 75 39 172

72,127 61 626 2368 24

, 172 -----

i 2 832 21 .463 18:200 '682 1 l900 1

.1 3321 Y53i

17 .637 14,091 1,432 i95 45 944

43 :4060 354011 1 io

72 904 3 8

244 1 20:4

0 2 39 12 1 :7

543

26,1 20.611

:146 7390 2

1

245 66 1

1 0' 1,266 557 117 11081 2.476 -------- 2.896 12,896

3341 29 139 18 1 165 109

6 :4 5 1 5:2086 340 123 2 342 331 ---------- 8,751

6

.964 607 1 75 390 606 369 ---------- 7

.8 62 06 .

. 39 486 346 ---------- 150.2 3 127 319 8 484 6 :2 6.6 54 3,189 698 4,221 4

,

17,262 14 334 1.128 .481 781 385 148 625 8 2

1 7,089 13,929 907 437 116 81

84

1 129 9.229 7.911 454 8 8246 277 412 ---------- 81 156 8.703 918 139 30 750 616 ----------

3125

4

8

:854

:"4

68,935

25,490

4.159 2.610 493 4,313 3.541 803 1,563 745 107 1 .654 1.004 691

a 8

44

8.424 8:4248

1

664 15482 13228 Z118 3 .164

1737 14 :2.57 H:796 Z622 81505

62 303 2A56 29

'Pension trust e,amims!irm . ".1 .. . ilribl -di . by .tri .t_hly . . region ., total .

Table 10-Additional tax and penalties recommended after audit examination by class of tax, and by Internal Revenue regions,

districts and other areas.

Region, service center,

and district Total

Individual E.

and Corporation Estate Gift Excise Employment organi ompt.

fiduciary often

3.898,351 508,648 68,797 97,910 108.029 5,244

1,120,226 147,190 14,669 22.688 12.898 730

353,823 60,137 3,680 5,587 11,106 3 2

3",371 51,559 5.573 61611 17,131 794

488.435 55 .953 4.674 33,834 7,046 202

613.660 59,422 17,894 10,229 3207 978

358.203 60.601 14.485 8 .578 23: 1 71 1,117

593,879 69,810 7,668 9.862 11,391 1,028

15.754 3.976 153 520 3.211 2

Total ----------------------------- 5.909 .198

North-Atlantic -------------------------- 1,571,12 7

filid-AtIontic ------------------- 7

Southeast -----------------------------

Central -------------------------------

Midwest ------------------------------

Southwest -----------------------------

Western -------------------------------

International Operation- -----------------

North-Athunti . Region:

Albany ----------------------------

August ---------------------------

Bostorooklyn - --------------------------- --------------------------

Buffalo ---------------------------

Burlington ------------------------

Hartford --------------------------

Manhattan -------------------------

Portsmouth ------------------------

Providence

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

Andover So m- Center --------------

Brookhaven Service Center ----------

Mid-Athantic Region :

'N:w,tia-k.

.

.

. . ..

Philadelphia -----------------------

Pittsburg h

Richmond

Wilmington ------------------------

Philadelphia Service Center ----------

Southeast Region;

569247

613 :682

703,343

836,063

594,906

982 .75 9

38,07 1

17,590

9 .13 2

139.743

141 .054

92,69 1

2,736

160,262

go"

:

89 4

9873

17.980

5,927

7,245

1 06220

201 :221

1 00

67:5'37'

57 . 592

31,02 5,1 3

1 2

At anta --------------------------- 87,151

Birmingham ------------ 41,475

C lumbia -------------- 2Z.470

Gree-bor- ------------------------ 111,425

'a"

an 17,084

la.k: .hvFIF; 25,984

Nashville -------------------------- 96,694

Atlanta Service Carte- -------------- 5.577

Memphis Service Center ------------- 5.822

Central Region:

Ci cin, ti ------------------------- 116,902

Cleveland ------------------------- 180,362

Detroit ---------------------------- 228 .496

Indianapolis ----------------------- 112,239

Louisville ------------------------- 42,345

Parkersburg ------------------------ 16.598

Cinnti rvice Center ri! ------------ 6.401

dwoult Real

.

.

Aberdeen -------------------------- 6.329

Chicago --------------------------- 437.078

Des Main- ------------------------ 29.949

Fargo 31 2

730:989

Omrih- ---------------------------- 35,388

St. Liui- -------- 94,618

S . Paul --------- 105,284

Springfield ------------------------ 46,248

Kansas City Service Center ---------- 6.868

Southwest Region:

Albuquerque ----------------------- 7,226

A stin ---------------------------- 202,833

Cheyenne -------- 250

0 Ilas ----------- 159:110

Derive - ---------------------------- 32,382

Little Rock ------------------------ 22.011

New 0 loans ----------------------- 69.049

0it's home City ---------- 52:1429

Wic its ---------------- 41 4

A stin Service Center --------------- 6.2311

Western Region :

Anchorage ---------------- 3 :141

Boise ----------- 39335

Helen, -:: : :: : : --------- 8. 3gl

Hanol

Ij . . . . .. . .. . .. . . .. . . . 1

0 .432

Los Angeles ----------------------- 436 .838

Ph,en 30665

Portlan d 16 :228

Reno 21607

Sell :048

San Francisco -------- : ------------ 31378 I'S

Seattle ---------------------------- 47 05

ORden Service Cents- --------------- 1:790

Fresno Service Center --------------- 597 1

- Less than 500.

1,232 .219

252.725

134 .522

187,643

113,199

101 .8w

138,751

289.220

14,45 5

5,409 4020 7,6 1 136 142 221 1

2.672 5:284 so, 36 87 202 -------

27,605 97.330 1.,73 796 1.803 1,829

67,655 43 .649 21 356 3456 2 7584 2.153

14 .916 67 .0 9 4:785 1:989 3:4 3 540

1,294 961 8.2 2 110 22 87

11 .718 134,302 6 1 1 746 3.399 497

100.958 754 .388 so -----

.

4060 4:647 10,973 6,9 6 522

2,441 3,905 2.738 1 .514 7 269 ---

4,886 9,378 2.303 240 2 154

5,927 -------------------------------

. . . ... . .

7,245 -------------------------------: : --------

27:015 66,124 6,831 429 791 4.683 ... . .. . 3 8

38 101 146,363 12.219 546 2.407 2.584 ---

33,082 52,215 12,084 984 610 1,521 44

10703 48 1 .617 5.5 3 485 913 1,287

7:954 29676 7580 966 832 584

2,555 10:828 15:889 270 1,034 447

5,112 ----------------------------------------------------------------

24.617 51,503 4014 647 1,611 3,995 766

11,626 23799 3:5 1 7 359 5 1'5

9,866 8:881 2.603 138 4 7466 5386 ---------- 9

16326 87.133 5,369 618 1,032 14 1

8:008 3 :624 4.226 360 .486 379

... . . .. .

87,446 105626 25618 2.6 8 2 186 2 .400 29

18 .354 63, 805 6 :2 1 1 774 274 7,275 ----------

5,577 ----------------

5,822 ----------------

11 .609 94,782 1:416 5117 378 1,078 82

21.046 142,756 11 8' , a 8 868 2938 83

28,917 160,127 13 .249 1,667 23.3 9

2

1:108 37

25580 64030

15

.5 13 1 .204 4, 8

14 :740 20:638 3898 247 2

, .3 1,03

640

4 .907 6,102 2:983 222 2,1313 25 0'

6.401

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

1,354 3986 756 36 12 185 ----------

35,108 353 :980 25 771 7,018 3,549 11,574 76

7,539 14.736 4 :630 1,129 1,117 791I

1 44 .740 .786 50 27 26

10 :3572 41 44

S

3946 366 2.143 12,734

6 .893 21 . 679 4 . 351 523 319 1.623 ----------

10 .981 65 ,221 12276 419 2,589 2,214 840

10 .788

.1 .

604 3:334

8'.

14 211 1,274

S

o

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

2 .735 2.350 1,631 136 305 68 1-)

35280 136,952 20 .574 2.981 2,995 3,839 211

1 :4 25 403 577 5 is 76

.. . . ...

39,027 98,411 15303 1 595 20 3 1.81 i66

1 :416 is 341 6~776 '566 '7613 571 ----------

10 185 6:590 2,501 11998 1 96 534 6

15 .810 46.582 3482 357 1.110 1.708 ----------

10532 2726 6: 1 3

6 .64

8 741 840 (-1

9 : 1 10 24 :309 3,1643 199 438 3.724

6.231 ----------------------------------------------------------------

2 .246 488 157 2 42 205 --------

2263 36.002 706 144

`16 2

2

3 :074 3 .578 1,325 54 149 210 ----------

3474 3.969 1.101 162 1.379 347 ----------

12E575 273,405 31 .697 1,970 4,092 3,694 404

10185 15 313 3.772 638 71 696 ----------

6: 1 76 4:758 2 .521 1.984 418 370

15 .354 3.530 1,652 549

61

461

8 .268 8.208 791 148

1

40

493 1-)

85 .697 221 .102 22

.

501 1.395 2 .340 4

.

24 527

18,047 23,526 3 . 585 619 1 .084 567 77

6,790 ------------------

5.971 ------------------

102

1 103
Table 11-Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases )

A . Progress of work F.Y. 1974

Status

Amount Itatund in love.u . g..tl .;

report (thousand dollars)

Member Of Deficiency Oversts-s.

case9 ..it Penalty meet

(1) (2) (3)

Pending July I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 22,671 3.428,766, 182 176 Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 21.267 2,007,104 68~388

Disposed of total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . * . . . . . . . . .

21

~111 51'168

By agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. ~ as

.

. . . . . . . . . . . . . . . 1 6 095,652 50.647 Unagreed: (Overessessments, claims, excise, employment, and offer in compromise rejections) . . . . . . . 1,742 21,874 521

By taxpayer default on statutory notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 900 26,532 0

By petition to the Tax Courl-transterred to docketed status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,879 223,691 0

Pending J. . . 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D15~1 41018,121-199,395

,=revised.

B. Results obtained in dispositions

Method

Appellat determination

Ithou:and dollars)

Number of Difici-Y 0. .. . .... a.

Co . .. ad P... ITT or

In

t

If,

. (2) 11

)

Dsp . .. it Of' total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * . . . . . . . . . * 21

.387 729,345 By

Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

. 15,866 462,831

Unagreed; (Overtul3essments, claims, excise, r6pi.yment, and offer In c~wpi_!,e rejections) . . . . . . 1,742 20,387

By taxpayer default on statutory notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . 900 25,561

BY Petition to the Tax Court-transferred to docketed status . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 2,879 220,566

89,987

C9-,405852

a

0

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 F.Y. 1974

Status

Amount Stated In statutory

notice (thousand dollars)

Number of petition" 0-sts ... a.

cases and tonally le 11) t

(2) (1

)

Pim dI,& July I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 12,097, 2,155.533, not

Received, total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

:

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

Petition. filed In response t-

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

. . . . . . . . . . . . . . . . . . . 4,799 749,1148 PPIII Cable

District Directors' statutory notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . .

. . . . . . . . . .

. 6,299 512,126

Appellate Olwfl .rl, statutory ipticas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 2.500 237,822

Disposed Of. total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,335 376,558

BY stipulated agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

By dismissal by the Tax Court or taxpayer default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6,434 487,752

. . . . . . . . . 904 8,807 applicable Tried before the Tax Court on the m .rIts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 997 79,999

Pending Joe . 30 . . . . . . . .

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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,561 2,328,92 3

'let.

I

. .

Difference from table 11, transferred to docketed status is Caused by excluding district directors' statutory notices considered by Appellate In 90-dII(

r Revised

B . Results obtained In dispositions

Method

Appellate determination (

thousand dollars)

Number of Deficiency 0.. .. . .. .. .

-16, ad Penalty .. I

11 ) (2) (3 )

Disposed 0!, total

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

.

.

. . . . . . . . . . . . . 335

_.

210,062

__

not

By

StIpulated agreement . . . . . . . . . . . . . . . . . . . . .

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

434 121,739 mistil.iltil

By

dism issal by the Tax Court or taxpayer default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 904 8,324

Tried before the T,x .Cou,t on the pr,Its I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 997 79,999

.'Represents amounts Petitioned . .

Ov . rassessment call, do not come under the jurisdiction of the Tax Court.

104

Table 13-Appellate Division processing of all cases for 1973-1974 (income, estate, gift, excise, employment, and

offers-in-compromise)

Status 197 3

Number of case s

1274

P home July I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 34,878

R:C .ived . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,549

Disposed Of. total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,693

By agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.695

Unagreed : (Overassessments, claims, excise, employment, and offer .m-Compromse rejections) . . . . . . . . . . . . . . . . . . . . . . . 2,263

By taxpayer default on statutory notice a, dismiss.[ by Tax Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,902

By petition to the Tax Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,54D

Tried in the Tax Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.293

Pending June 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U,734

- revised .

Table 14-District Conference Activity

Field

Audit

am'.

Audit

34,768 t

30 .066

29,72 2

22,300

1.743

1.803

2,879

99 7

25,11 2

F.Y. 1974

Cases pending July I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0,344, . 3,708,

Cases received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . _* . . . . . . . . . . . . . . . . . . . 187 15 11 :4 .117

Conference completed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1:772 1 69

Number agreed Ag as a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,147

teed percent of total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ! . . . . . . . . . . . . . . . . . 64.7 13-155 77 .4

Cases pending June 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,726 6,152

-.1.ted .

Table 15-Overassessments of Tax Exclusive of Claims for Refund

Number

~ 1973 -1974

total

12,052,

31~~ 7,G :117

25,30 2

70 .8

12,BBD

Race ' A '"' :.led

(thousand dollar '"T .)

1973

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.780 103,473 $275,679

Individual and Fiduciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,657 73,507 57,325

Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,191 16,677 176,249

Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,270 5,892 25,421

Gift

. .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 452 610 4,350

Excise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,899 4,209 9,728

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,648 1 .870 1 .946

Exempt Orgarrintions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663 703 661

105

197 4

$364 .454

52.015

266 .708

30.590

2,723

9,857

1,609

962
Table 16-lifforlitflow, in the Internal Revenue Service and the courts, fiscal years 1973 and 1974

TAX returns filed, total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,242,305 121,609 .260

ImIxIdusl income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,545,407 83,028,941

Corporation income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,946.218 1,981,380

Estate and gift . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 445,565 464,193

Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,998,101 24,794,221

Esci . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,498,103 1 .342,220

Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,818,911 9,998,305

INCOME, ESTATE, AND GIFT TAXES

Number of returns examined (including forms 990) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Retums with adjustments proposed by audit divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,104,261 1,328,209

Disposed of by audit divisions :

Agreed paid, or defaulted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,064 .437 1,286,835

Transferred to appellate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,368 32.600

Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.456 8,774

RETURNS

1073 1974

1,603,347 2,030,665

Table IS .-Determination Letters; Issued on Employee Benefit Plans, FY 2974

Determination letters Issued with respect to1 . Initial qualification of plans :

a . Plans approved number of participating employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D . Plans disapproved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 . Termination of plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 . Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 . Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cases closed without issuance at chiterminuative letter ad Ore., disposal. . . . . . . . . . . . . . . . . . . . . . . . . . . .

C[ IL CASES

Total received in appellate division . . . . . . . . . . . .

. . --. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. 20,500 10,569

Disposed of by appellate divisions: Agreed, paid . Or defaulted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,787 15,800

Courts of Original jurisdiction :

TAX Court :

Total petitioned to Tax Court . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,624 8,799

Dismissed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,018 911

Settled by stipulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,827 6,493

Settled by Tax Court decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 951 1,100

Decided by Tax Court, but appealed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 257

District courts and Court of Claims ;

Total filed in district courts and Court of Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 931 1,133

Settled In district courts and Court of Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 713 552

Decided

It

y district courts and Court of Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366 471

Courts of Appeals ;

Settled by courts of appeals decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 364 363

b:: lo 1,,X, m,,t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2:6 25

'F:"v . ; :b 3 .,1

to axpayers . . . . . . . . . . . . Modified 25

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

17

Decided by courts 'a ' 'p'p'e*a*1 s' *but* 'r'e*v 1*e'w' e'j b'y' * S, u, p, re, ri *a , C-o'ur t, 8 4

supreme Court: Sett;ed by Supreme Court decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4

I AUD CASES

Raceh, it for investigation in latelligamea division, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DiSPOs:d Of by intelligence division :

7,4911 8,078

Irp, :,l.u~11, race ended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,555 2,454

Pro, ion not recommended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,046 4,761

Disposed of

by

office of Chief Counsel :

Prosecution not warranted, Including Cases declined by the Department of Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 27

P .. . Cliff. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,077 1,423

Table 19-Offers in compromise disposals, fiscal years 1973 and 1974

Type of tax or penalty

Number

1973 1974

Offem accepted, total ------------------------------- 879 827 47,868 21,659 4,693 5 .137

Income, estate and gift taxes -------------------- 272 252 40 .322 14,898 2,506 3,107

Employment and withholding taxes ---------------- 304 275 6.538 5,634 1,937 1.713

Other excise taxes ------------------------------ 22 17 232 510 85 129

Delinquency penalties on all taxes ---------------- 275 275 776 617 147 145

Specific penalties ------------------------------ 6 a ---------- ---------- 18 4 3

Offem rejected or withdrawn, total --------------------- 2.332 1,901 68 .042 55.475 11.257 11,234

Income, estate and gift taxes -------------------- 1,021 813 47,072 34,568 7.305 6.989

Employment and withholding taxes ----------------- 806 693 16,406 17 .919 3,405 3,575

Other excise taxes ------------------------------- 86 55 3.574 1,994 372 393

on .11 1...a ----------------- 33. 519. 994 j72 27S

Specific penalties ------------------------------ 2 2 ---------- ---------- 3 1

Table 20.-Tax withheld from payments to foreign persons of treaty and nontreaty countries-calendar year 1972

rRiC .sand, dollars)

Table 17.-Amounts of Revenue Involved at each level of the Tax System Fiscal Years 1973 and 1974

(thousand

1973 doll"')1974 -71-

Internal r . .. a. Collective ., total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237,787,204 268,252,254

Individual Income taxes, total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,112,006 142,903.650

Withholding . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 .092,726 112 .091.799

Oth~.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,019.290 30,811,851

Corporation into ., taxes _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,045,309 41 .744444

Estate And gift I ... a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,975,862 5,100:675

Employment taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,081,709 62,093.632

Excise taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,572,318 17,109,85 3

ftcore ., Estate, and Gift 7... a

Civil Cases

Additional tax and penalties disposed of in audit divisions by agreement, payment or out u I . . . . . . . . . . . . . . . . . . . . . . . . .

Millions of Dallas

- A ditional tax and penalties in cases disposed of in appellate divisions by agreement, payment or default . . . . . 7:7r . . . . . .

. r4-93 '!

clitional tax and penalties determined by settlement in Tax Count . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . .

Dismissed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional D"I'i tax.. an merits and pehlli sea decided *~;- . . . . . . . . * by. . . Supreme Court and Courts of Appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * . . . . . . - * . . . . - * . . . . . . . * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a' Amount refunded to taxpayer, ' a a ,suit Of refund Itilla . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fraud C... a

20

10

s o

Deficiencies and penalties in cases disposed of in intelligence Ni .ionx : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Prosecution recommended :

Prosecution not warranted and Cases declined by Department of Justice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1

106

374

9

Country

Treaty Countries :

Aii Au is :j~all a

8 .1

curgm, "I r B-i ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

171tarl ."' .n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dan. .,

Finland '

France

. . . . . . . . . . . . . . . . : . : . . . . . .

,edel :, iiio~ihii~- -of - 4-.i;~;Wy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Greac

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

.

,island . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E . . . . .

span . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Luxembourg . . . . . . . . . . . . . . . . . .

Netherland. . . . . . . . . . . . . . . . . . .

Netherland, ArAille . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Nim"y . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . .

Sw ifterlar"d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Trinidad & Too .,. . . . . . . . . . . . . . Repubt

!C of

South Africa . . . . . .

U nited Kingdom . . . . . . . . . . . .

Former U .K . O/s Territories . . . . . . . . . . . . . . . . . . . .

Nontresty countries . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . .

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TAX fr..

The foreign

bywlthh 14 IT... to .

domestic ... . or

withholding withholdW If

.Sent. agent,

Proill-Shuselfig Pension

asell stock or annuity Total

Inmus plans plu s

27,314 33,563 60.877

434,239 970 .696 1 .404 .93 5

169 287 456

1.897 2,052 3,949

5,746 14,652 20,398

178 151 329

2,371 3.671 6,042

Amount (thousand dollars)

Liabilities Often

1973 1974 1973 297 4

9.454 712

2,475 362

27,419 3,556

300,8252

- 2,864

262

92 6 a,

76,1N

1,389

4.372

14 .996

43,348

2101U1"60

178,791

42 1

2,296

11 .252 I"

349,704

97

1,44 2

'01,

112,33651

1,760 .319

30 3

3

30,132 1 3,200

23

109

26 6

572

1,586

4,537 -

3 :81832 189

16 6 362

4,287

69 -

3

27171

748 -

43,8511 6 2!~131

36

."7

401

124 -

23,924 -

107,501 29,898

Nauru., .1

lnf*'

two do.$.. .

..at, filed

Total by atith.

tax

holding

withheld zenest .

712 5,545

362 5 .224

3,859 10,839

33 .3 23 88231,788

leg 2

.256

8,81723 -

14,1145

5'66' 57 71

7

266 2:866

572 4,330

1,586 15,227

4,537 3,506

4021 2,657

17:248 12,834

4,290 1,680

69 1,088

27117 4,132101

748 4,722

68,98216 42,41 0

344

396 1,942

37 , 248

51

1 453

24 1:4 12

23,924 102. I So

217,279 566.93%

tl At Printinj only total amount of tax, withheld is available ; breakdown be tween tax withhold by domestic withholding agents and tax from foreign govern .

men

.

or withho ding agents Is estimated I om past experience .

107
I

Table 21-Internal Revenue refunds, including interest, fiscal years 1973 and 1974

(For refunds by region and district, see table 5 )

Total refunds of internal revenue I I ----------

Corporation Income taxes ------------------------

Individual income and employment taxes, total' I, -----

Excessive prepayment ricame ta,g ---------------

Other Income tax and Federal Insuranc C-ntri butions Act tax e

Railroa ---- ----------------

it retirement ------------------------

Eau

n

PI

oyment insurance -----------------------

tat:mt

Gift ta x -- -------------------------

Excise taxe ;._i3WF :::: : ----------

Alcohol taxes B ------ ---------- : -----------

Tobacco taxes' -------------------------------

Manufacturers' and retailers' excise taxes, total ---

Gasoline used a, farms ----------------------

Gasoline . nonhighway --------

Oth r - -------------------

All other excise taxes' ------

Number

Amount refunded Amount of

(principal and Interest- interest Included

thousand dollars) (thousand pollen)

1973 1974 1973 1974 1973 1974

63.1 '3 884 65,711 :713 25:011:015 28192634 175.867 220 .92 1

275: 1 04 3 ta 836 3 13 205 3 :282 :094

1

20246 15~ ' 3 4

62.774.727 65,376 .146 22,4lZ326 24,569,1 91 47:51

0

55 :2067

61,088,325 63,253,803 21,442,506 23,423 .091 22,622 27,047

1156, 31;8 1,970,456 948,278 1,119,7110 24,4114 27,634

119,118 151, N 6 4 4 721 5 2 8 1 5

453 20,821 25.879 456 571

112 :345 22,747 62,057 687 9 6 6 .225 6,353

426 3,196 3.403 4:055 443 437

55 .282 67,788 314.037 268.525 1,442 1 .560

10,542 12,410 109.087 110.302 a 14

528 365 2.706 3,277

4,429 3,801 175 .428 129,315 395 447

50 105 102,278 109,596 ---------------------

11022 1,077 24,765 -6,583 ---------------------

3,357 2,619 48,385 26,302 395 44 7

39,783 51,212 26,816 25,630 1,039 1.109 9

In i. amFig. .. . have not been reduc reflect raimbu ements . rited too Tfrom the Federal Old-Age and Sumivors, Federal Disability, and Federal ,H*371. C110,01

urance Trust Funds . mg $478 856,000 in 1973 $535.206 .000 in 1974, from the Hi.ghwaY tF,n amounting t ;S14(

"o

I , I $ 0 .20,969 ~u s

in 973 no ' 123.178,000 In 1974 ; and if,~m 1$h,,s,2,3rp01*ymn1 Trust Fund amodu.niing t. in 973 and $25,878,11 1 in 19 ;'4 .

- Net of 76 .669

-n 1

.1iii-ti

. checks 0

timig oo In 1973

and 77, 11 6 u n verable checks totaling $20,866 .000 in 1974 .

Includes refunds 'not the-,, . classified ."

I Includes excess F I CA credits.

4 Include, drawback, and stamp redemptions Innc :.ud :: .

lubricating

Ol I

used for nonh=:nurposes .

d narcotics, all_. wagering

d stamps), capital stock, and Other excis, tax refunds.

Less than $500 .

Table 22-0bligations Incurred by Internal Revenue Service by. Appropriation and Activity

[in thousands of d .11-1 1~

Par .. ..I

lip.m. :tion

.ad

forl fit

.

Appropriation by activity 1973 1074 . 1973

Total obligations, appropriations

and reimbursable . . . . . . . . . . . . . . . . . . . . . . . 1,192.009 1t :112 1181

Ob

ain't appropriation funds . . . . . . 1,141,969 303,

W=~:d"g.pentaill:

"'I" 969 752

1974 1973

other

1974

, 1 72 183,173 243,619

l :0"61:39'7 172,217 242,131

31, 036 1: 2124 1:411

13,2 11

2

6

2 477

0,825 2

,

862 2,93 9

411 2M,:02 11 17 62: 1 148

17 57' 6312F

9 .21 6 11066 1585

193,869 28,317 94 :22

6

9 -

17

A 5 N' 6

:309 7 26 87,783

31012 55 54 4,140

69367 13,980 16536

30:315 2,411 2:497

277 11 16 :17 :1171 992

37 2 2U 18

7,879 10,956 1,460

Total . _ . . . 34617 36,432 29:03

Executive diretti ;W : . . . . . . . . * . . . . . . . . . . . 15:195 15,683 12 933

Internal .

.it If and security . . . . . . . . . . . . . . . 19,422 20.764

1"

.0

Account ., WIWI"

and

... . . . . taxpayer iiezrvlpl ~

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 510.598 GoA

. As

411S.:111

Data Processin, operation. . . . . . . . . . . . . . . . . . 298.601 315:088

2 02S

Statistical reporting

Collection

,,it but,111

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

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.. '01 1 . 202':ffl Is . 278 1 173 ":09 ;482721

District

rel'""', up ..

.

tion . . . . . . . . . . . . . . . . . 321 - 312

Cilinpli-Ii

T but 596

.

.754 663,092 52, 62,

Audi' of

to' returns "7~423 411 111 391:969

I., fia'd and

. .c"

; ;iiiiiiiiWil", '4

.28 85~9.3

60,048

1-ii,er Imifl-c" and appeal, . .~ . . . . . . . 3 1:226 32 1712

2' 21'

Technical rulings

and service I . . . . . . . . . . . . . . 16656 18

:8 0 15

:486

Le W service . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,421 30,355 25,310

thifintruniable obligations, Total . . . . . . . . . . . . 20,040 9,367 9,094

Note : Transfer to GSA for rent of space totaling $8,359.000 and $8,369,000 in fiscal years 1973 and 1974, respectively, are not Included .

Table 23 .-Man-Years Authorized and Realized '

Appropriation

Authorized Realized

1973 1974 1973 1974

Percentile

Realize

1973 1274

S laries and expenses . . . . . . . . . . . . . . . . . . . . 1,719 1 1:7231 139594 1 1001 .5 105.3

Accounts, Collection and taxpayer service . . . . 31:5 4 39:5'1'7 3868 :7 7 00.4 100 2

compliance . . . . . . . . . . . . . . . 32485 34,717 3 1 34,424 201 .3 99 :2

Total . . . . . . . . . . . . . . . . . . . . . 7!~728 75,697 73:'.11 7 7 2 1 00.8 9, ,

[....,a 1974 ovear 1973 . . . . . . .

.

: : . : . . . . .

. +3,160 +32:436 - -,:a

A Excludes reimbursement man-years.

108

Table 24-Costs. incurred by the Internal Revenue Service

In thousands of dollars.

Internal revenue office, district, or region

A. National Office and regional totals (including district directoes affices

and service centers)

Total Internal Revenue Service - -----------------------------------

National

Ncirth~Aflantic Office -------------------- : -----: ------------------------

Mid-Atlantic --------------------------------------------- --------------------- ----- -----------------------

Southeast ------------------------------------------------

Central ----------------------------------------------------- -

Midwest ------------------------------------------------------

Southwest

Western

Regional Counsel ---------------------------------------------------

Regional Inspection -------------------------------------------------

Office of International Operations --------------------------------------

National Computer Center --------------------------------------------

IRS Data Cente - ---------------------------------------------------

0. Regional cammillssioner's offices (excluding district directuar's offices and

Isarvi- cambers )

North Atlantic ------------------------------------------------------

Mid-Ailimb- -------------------------------------------------------

Southeast ----------------------------------------------------------

Centra l

Midwest -----------------------------------------------------------

Southwest

Westam -----------------------------------------------------------

C . Regional caults undistributed

Nofth.Atianti- ------------------------------------

Mid*Atiantic ------------------------------------ ------

Southeast Cant ---------------------------------------: . ... . .. . ..

sou Midwest = ..------------------------------------------ .. ... ... . .. . ... . .. . ... . . . ... . ... ... . . . ...

thwest

Wallis - ----------------------------------------------------------

0 Dstrict directoes offices and service centers :

Nirith'Athinti .:

Albany,

August

Bo,to

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

a : ------------------

rooklyn ------------------------------------------------------

Buffalo

Bu=n -------------------------------------------

H e

M

------ ---

P rtsmouth

Providence ------------------------------------ :: ::: : ::---------

North A ::nlic Reegglgognsl Training Ctr ---------------------

N 0rth:Att rilic R -Centralized Tr- ---------------------

Andover Service Center --------------------------------

Brookhaven Service Cente r

fill"ti-ti.:

Baltimore -------------------------------------------------------

Newark

Philadelphia ----------------------------------

Pittsburgh --------------------------

Richmond --------------------------- . . . . .. . .. . .. . . .. . .

"r7 tittl e

W i n o

n

Mid A ng Ct - --------------- -------

Mol-Atilopht~c Regional -Centralized Tr I Fe - ------------------------------

Philade P is Service ante - ---------------------------------------

southeast:

Atlanta --------------------------------------------------------

Columbia Birmingha m

- _

:

: __

Greensboro ---

Jacks n ---------------------------------------------------

Jacksonville -----------------------------------------------------

Nashville ----------- -------------

Southeast Regional Training Ctr ----------------

Southeast Riegion-Centr alized Tr

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

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

Atlanta Service Center ----------------------

Momphl, Service Center --------------------

109

Total Personnel Travel Equip. Other

Compen- ment

sation

(1) (2) (3) (4) (5)

1,363.809 1,111,976 45 .933 22,872 183.029

1 ' 5890 82502 2601 4.562 96.227

222 :800 198 :803 5:776 3.370 14 .851

1

47 697 132,235 4 .181 2,341 8,939

145~198 122,632 6,891 2.309 13.366

125,875 110,679 4 .808 2,241 8.147

145,596 127,724 5.563 2,650 9,659

127,255 110,486 5.818 1.887 9.065

194,339 167 .948 7.807 2.676 15.908

17,521 16,802 266 -------- 454

16,683 14.957 1,187 122 417

81590 7,122 882 102 485

' 586 4,561 57 57 3.91 2

17:779 15,527 97 555 1.600

12,040 10.556

9,462 7.354

8,142 6.877

108,044 686 9

324 7~632

6.990 6,135

11,346 9.79 2

2,843

2:315

36 1 2

2422

2:193

2.598

3 , 087

236 355 893

370 204 1,535

334 137 794

199 326 650

486 102 2,103

297 74 484

411 254 BS8

827 1.816 85 114

7 1 1 :450 115

845 2641

1

2

751 1,609 -------- 62

552 1,526 32 82

479 1,968 48 103

766 2 .214 -------- 1 08

6747 5,924

3~550 3.16 9

23 .235 21,260

24 .948 23,189

1 5,636 14 .19 6

1 997 1,629

1 2 :321 11,112

51 125 48.15 5

2 :910 2 580

4 , 322 3

38 70:85 5

29, 4211 ----

9

;T!~j

3 1, 067 26 .28 2

18 .769 17.549 28 .594 26,456

26 :206 24,411

14 295 13.156

1 2 .869 1 1 782

3.271 2:978

279 219 1 25 -----------

31 .510 27.579

15 .787 13~812

1

044 7063

5:796 5:223

13.061 11,511

5334 4749

26:12 a 22:843

10.672 9.203

5 1

182 --------

23,575 19.995

24,815 20,511

191 211 421

151 65 164

492 407 1,076

410 408 940

449 224 766

92 at 196

283 186 741 618 625 1,727

112 64 1

78 93 296

205 5

2 is 295

193 ---- F8767 2 .993 448 265 4 .07 1

287 339 594

580 559 1.000

470 448 877

312 291 536

437 138 1 51 2

63 202 12

5 6 49

125 --------- 0)

84 255 3.59 2

764 269 941

349 151 480

204 118 251

602 271 677

242 97 2 7

9 29 558 1.798

460 256 753

51

171 1 1

87 267 3.226

108 184 4,011
Table 24.--Costs incurred by the Internal Revenue Service-Continued

In thousands of dollars.

Internal revenue office, district, or region

Central :

Cincinnati -----------------------------------------------------

C aveland ------------------------------------------------------

Detroit

I.di . .. --------------------------------------------------- -----------------------------------------------------

Louisville

Park rsburli ----------------------------------------------------------

Central Regional Training Ctr- ------------------------------------

Central R, i--Cs,traii,ed Training ------------------------------

Cincinnati Service Conte 2 ' - ---------------------------------------

Midwest:

Total Personnel Travel Equip~ Other

comp~ an

.all .

(2) (3) (4)

13.894 12,796 363 243 -491

21,249 19,279 570 319 1,081

27.228 24.646 804 345 1,433

14.144 12,616 468 353 707

9,105 7,502 310 310 982

4.959 4.461 231 74 192

479 430 6 14 28

130 ---------- 128 -------- 2

24.222 21,329 128 256 2,51 8

Aberdeen ------------------------------------------------------ 2.463 2.109 141 103 110

Chicag- ------------------------------------------------------- 35,698 32,927 684 817 1,270

Do, M.Ira - ---------------------------------------------------- 8.240 7,316 331 165 328

Fargo

Mll . .,~;; ----------------------------------------------------- 11 ------------------------------------------------------ 2,257 1,988 132 27 110 .768 10,717 391 151 508

Onrulh- -------------------------- 5.562 4,922 225 170 .245

St. L u,s ------------------------ : ----- -- -------------------- 8,032 16,134 614 504 781

: ------ 1 2070 - 11,000 376 194 500

Stpringfiel~ . Paul -------------------------------------- --- -------------------------------------- : 9444 8,406 435 120 .484

: --- ---------

:

Midw:,at R zi-nal Training Ctr. --------------------- --

Midw I R : io,--Ce,tmlized Training ------------------: : ::: : : - --------------------------------------------------------- 149 --------- 48 -------- 2

Kansas City Service Center ------------------------- ::: ------------ 27,496 24,020 175 264 3,13 7

Southwest

Albuquerque - ------ --

A :- : ----------- : : ------------------------

.

fin ----------- ::: -- - ----------- ------------------------

Cheyenne --------

D He - -----------

Denver - ------------------------------------------------------

LIdI, Re

No. Orle-- ---------------------------------------------------- .n;

Oklahoma Cit;--------------------------------------------------------

Wi hits --------------------------------------------------------

Southw at Region-CaMnalized Training ---------------------------

Austin Tervice Came- -------------------------------------------

Austin Reg. Tr . Cento - ------------------------------------------

Western :

Anchorage --------------- --------

Bel-a ------------------- :: : :: : - - ------ 7 - --------------- : : -----------------

Helena -----------------

H,nolu u ---------------

Los Angeles I' ------ -------

Phooni - --------- ---------------------

P --------------------------------- Portland Ron. ----------------

Salt

San Francisco

Seattle --------- ----------------------- --- - ---------------------

Western Regional Training Ctr- -----------------------------------

Wastern.Region.&Centralized Training -----------------

Ogden arvice ante ---------------------------- -

Fresno Service Center ------------------------------------------

37 5 3.067 157 119 402

21 :757 19309 761 387 1

.

1 :30 0

. 711 1 :584 104 21 go

20, 9.6 2 8. 566 745 288 1,307

8,742 73 1 290 134 598

5,208 4,682 198 70 :25 8

10,994 100 6 345 154 489

9,887 8:788 353 158 588

71659 6.613 295 182 569

1 1 3 21 1 1 a 73

26.649

----------

220 -------- M

220 23.516 85 234 2.31 5

2.015 1,595 141 55 217

3063 2,561 180 43 279

2:790 2,439 166 33 .5 :~125

3 .752 3,343 141 4 . 4

46,011 41,321

1,

467 592 2,631

7500 64 1 270 117 682

7 :890 7:0 4 307 90 419

5,774 5 , 073 2 2 47 411

3,887 3.322 110 211 :2 "

30,376 26 13 I'OOS 386 1 2 .! 9

2,462 10354 51 7 257 935

1 .469 431 7 223 1307

340

---------- 330 -------- 10

26.294 2329 164 230 2.502

26, 283 22:1335 125 83 3,24 1

ILess than $500.

ncludes SSA million financed from reimbursements .

Amounts shown do not include transfer to GSA for rent of space totalling $8.359 .000 and $8,369,000 in fiscal years 1973 and 1974, respectively .

110

Table 25.-Pemonnel Summary

Location and type

Service Total

Permanent ------------------------------------------------------------ -------------------

Temporary ------------------------------------------------------------

National Office '

Field Service Total '

Data Processing, total -------

Collection and Taxpayer

M .r.y.er;

realized

1973 197 4

74,170

63,251

10,91 9

4,309

67 .935

24 .387

Service Total

Revenue Officer------------------------------------------------------- 12,273 - --------------------------------------------------- 6,464

Other ------------------------------------------------------------- 5,809

Audit, total ----------------------------------------------------------- 22,392

Revenue Agents ---------------------------------------------------- 13,166

Off. Aud . & Tax Tech - ----------------------------------------------- 3,336

Other - ------------------------------------------------------------ 5 .890

Intelligence, total ------------------------------------------------------ 3.168

Special Agents ----------------------------------------------------- 2 .304

Other

Appellate, tota l

Appellate conferees

864

1,305

61 1

Auditors ---------------------------------------------------------- 128

Other ------------------------------------------------------------- 56 6

Administration, total ---------------------------------------------------- 2,741

Regional Counsel ------------------------------------------------------- 862

Regional Inspection ----------------------------------------------------- $0 7

Economic Stabilization P,.g,.. . total- ---------------------------------------- 1,926

Federal Energy Office, ----------------------------------------------------- -----------

Note : Reimbursements are includad in above figures.

- Includes terminal leave man-yeam for entire Service .

-Includes Office of International Operation,, Nation .[ Computer Center and IRS Data Center.

sincludes overseas employees hired locally (I In 1973 and 3 in 1974) .

1 Reflects man-ye6m realization and personnel on roll for National Office and field.

ill

Revised 10/17/74

Number at Close of on -11,

yea r

1973 297 4

78.921 71 .546 78,700

67.977 63,987 69,635

10,944 7 .859 9,065

3.950 4,073 4.305

72,469 65.694 73.928

25.187 22,501 22,450

12,895 11,481 13,615

6.237 5.969 6.520

6.650 5.512 7,095

24,975 22,858 27,998

14.144 13 .017 15 .400

4.174 3,347 4,526

6,657 6,494 7 .972

3.472 3,319 3.701

2,493 2,396 2.577

979 923 1,124

1,288 1,246 1,291

615 590 Ste

123 120 119

550 536 554

2.935 2,580 3,154

898 902 953

819 807 866

2,289 2,079 467

205 ---------- -------
Table 26.-Quantity and Cost Statistics for Printin g

CI. .. of Work

Fiscal Y.. . 1973 Fiscal Year 1974

. ..tity (thousands) Cost Quantity (thousands) owt

It... Packages fine S .;i . .. . itor Set dollars) .

dollars) primi Packages (thousan d

(4) (6) (6) (4) (5) (6)

1. Tax Packages (1973):

Package I (Form 1040, Instructions Sch.du Is A-32 pages) ------ - - -----------------------------

Package 2 (Form 1040, Schedules A, D, E & R and Instructions—

44

Pass

Package .) --- ---------------------------------------------- ----------------------------- 3 (Form 1040, Schedules A . C, D, E & R, SE. and l,str,c .

tions-52 pages) -------------------------------------------- ------------------------------

Package 4 (Form 1040. Schedules A. C . D, E & R, F, SE, Form 4136 .

and nst,uctio,s-60 pages) ---------------------------------- ------------------------------

Package 1040A.73 (Form 1040A, and Instructions-16 pages) ---------- ------------------------------

Package 1065 (Form 1065. Schedule K-1 . Form 4797 and Instruc .

tions--48 pages) -------------------------------------------- ------------------------------

Packs 1120 (Form 2120, Schedule 4871 D, Forms 1120-1011, 3468, 4797 ,

.a 7004, and Inst-tions-40 pages) ------------------------ ------------------------------

174.625 34,925 1.894

114,250 11,425 7118

101 .790 7,830 552

39,000 2.600 204

65,070 21,690 644

18,000 11800 208

30,000 2,000 201

It. Tax Packages (1972):

Package 32 I (Form, Form 4875 Instructions . Schedules A & B-- page.)

------------------------------------------------ 116 .580 23.316 654 ------------------------------

Package 2 (Form 1040, Form 4875, Schedules A & B, D, E & R. an d

Instructions-44 page%) ------------------------------------ 117,981 13,109 443 ------------------------------

Package 3 (Form 1040, Schedules A & B, C, D, E & R . SE, For m

4875 and Instructiom-52 pages) ---------------------------- 98,358 7,566 282 ------------------------------

Packar 4 (Form 1040, Schedules 4 A & B, C . D . E & R. F. SE, Form

13 . Form 4875 and Instructions-60 pages) ----------------- 47,872 2,816 108 ------------------------------

Package 1040A.72 (Form 1040A, Form 4875 and Ins1ructions-2 0

pages) --------------------------------------------------- 88,455 29,485 361 ------------------------------

Package 1040A .73 'Form 1040A and Instructions-8 pages) -------- 46,980 23,490 110 ------------------------------

Package 1065 (Form 1065, Schedule D, and Instructions-16 pages)-- 17 .250 1,725 83 ----------------------------

Package 1120 (Form 1120, Schedule 0, Forms 1120-W, 3468, 4626

and Inst ructi ons for Form 1120 and Schedule D-32 pages) ------ 30,000 2,000 106 ------------------------------

Pub . 393 (Forms 7018 . 941C . W-2, 941A, W-4, W-4E. Schedule A

for W-4,Pub. 213, and Unemployment Tax Schedule ------------------------------------------- 86.816 5,426 401

Tax returns and instructions for major mailing to taxpayer-Total- 563,476 103,507 2 .147 629,551 87,696 4,892

IV . Other Tax Returns, Instructions, Public-Use Forms. and Pamphlets ---- 2,447,963 ---------- 10,807 2.341,955 ---------- 16.399

V . Administrative Forms and Pamphlets ----------------------------- 745,451 ---------- 4,710 611,921 ---------- 6.555

VI. Field Printing ---------------------------------------------- * --- 281,084 ---------- 1.571 295 .989 ---------- 2.072

Vil . All printing to support the Economic Stabilimflon Program ---------- 17,396 ---------- 468 4,560 ---------- 20 4

GRAND TOTAL --------------------------------------------------------------- 19,703 ------------------- 30,12 2

i

Note that this entry covers a package for calendar year 1973 . Due to the need far pron... ment lead time the money as expended in

FY.73 .

Index

A

Acts :

State & Local Fiscal Assistance

Act-1972/59

Aid to State Tax Authorities

(intergovernmental Personnel

Act)/5 9

Advisory committee/62

Alcohol and tobacco tax :

Statistics on,/9, 10

Appeals :

Appellate division,/123

Processing,/24

Statistics on,/24

Assessments, additional,/19, 20

Assistance :

Foreign tax,/34

Overseas,/36

Taxpayers,/2, 3, 4, 5

8

Bulletin, Internal Revenue,/30, 3 1

C

Charts

Organization,/38, 76

Chief Counsel, Office of

Cases involving criminal

prosecution,/45

Chart of new organ ization,/38

Disposals of cases by,/43, 45

Civil litigation,/40

Operations and Planning,/53

Collections :

Alcohol taxes,/10

Corporation taxes,/10

Disability and old-age

insurance,/10

Employment taxes,/ 10

Estate and gift taxes,/ 10

Excise taxes,/8, 9, 10

Individual-income taxes,/10

Old-age and disability

insurance,/1 0

Tobacco taxes,/ 10

Unemployment insurance,/10

Withholding taxes,/10

Commissioner :

Contents of suits,/46, 47, 48, 49

Commissioners of internal

Revenue,/82, 83

Competent authority activity,/35

Computer audit prograttl

Conference :

Appellate,/24

Procedures,/24

Coordination and cooperation wit h

bureaus and agencies,/59

Corporation income taxes,

Additional assessments

Proposed,/20

Collections,/8, 10

Refunds,/8, 10

Returns :

Examined,/19

Filed,/8, 9, 10

Team Audits,/2 2

Courts, statistics on :

Circuit courts of appeals,/42

Court of Clairrl 42

Supreme Court of the United

States,/4 2

The Tax Court of the United

States,/4 0

U .S. District,/41

Criminal prosecution :

Analysis of cases,/45

Cases, disposals of,/45

Results of,/45

D

Delinquent accounts :

Disposals,/14, 15

Statistics on,/14, 15

Determination letters :

Employee benefit plans,/31

Pension trust plans,/31

Self-employed persons benefit

plans,/31

Disability insurance taxes :

Collection,/10

Refunds,/ 8

Discriminant function,/1 8

E

Economic Stabilization and Energy

Activity,/64, 6 5

112 113
114

Employment taxes :

Collections,/8, 10

Refunds of,/98

Returns :

Examined,/19, 20

Filed,/9

Enforcement activities

Delinquent accounts,/15

Delinquent returns,/15

Examination programs,/18

Mathematical verification,/1 4, 18

Tax fraud investigations,/25,

26, 27

Workflow in Service and the

Courts,/43, 45, 106

Estate tax :

Collections/10, 32

Refunds of,/108

Returns :

Examined,/19

Filed,/9

Examination program :

Classification and selection of

returns,/18

Returns examined, number of . /19

Tax recommended, additional, /20

Excise taxes :

Additional assessments, / 1 4, 20

Returns filed,/9

Exempt Organizations, /32

F

Federal-State cooperation

Agreements,/59

Audit coverage,/59

Computer-information exchange,/!59

Training,/59

File:

Exempt organization master

file,/32

Foreign investors,/35

Foreign tax assistance program,

/34,35,36

Foreign tax officials assistance to, /36

Forms and form letters,/3,4

Fraud investigations,/ 25, 26, 27

Gift taxes:

Collections,/10

Refunds of,/99

Returns filed,/9

Examined,/19 I

income tax(es)

Additional, from enforcement, /14

All returns,/8, 9, 10

Corporation,/8, 9, 10

Recommended additional tax

penalties,/20

Individual income taxes :

Collections,/8, 1 0

Mathematical verification of, /14

Refunds of,/8

Returns/9

Informing and assisting taxpayers, /5

Inspection activities :

Internal audit,168

Internal security,/68

Investigations,/ 69, 70

Statistics on, /71

Intelligence Division,/25

Statistics on,/25, 26, 27

Tax-fraud investigations/2

5

Inter-American Center of Tax

Admfnistrators,/36

International tax training,/34

Interpretative activities,/50

Joint Committee on Internal

Revenue taxation,/21

L

Legal activities, /38-53

M -

Magnetic tape,/11 . 57

Management activities,/72

115

Map of internal revenue regions

and districts,/77

Mathematical verification :

Additional tax from,/14, 18

Statistics on,/14,18

0

Officers, principal, Internal

Revenue Service,/78-82

P

Pension reform,/58

Personnel :

Equal employment program,

73,74

Handicapped, use of,/74

Investigations, / 68, 69, 70

Recruitment,/5

Labor-Management activities, /73

Presidential Election Campaign

Fund,/3, 1 1

Programs :

Foreign tax assistance,/34

Overseas taxpayer compliance, /34

Strike forces,/26

Taxpayer assistance,/2,3

Prosecution,/ 25, 26, 27

Public information activities,/5

R

Railroad retirement taxes,/10

Recrultment,/5

Refunds :

Excessive prepayments,/98

Statistics on,/8

Regulations :

Selected regulations

published,/52

Requests :

Technical Advice,/30

Revenue Rulings, analysi so 1, /30

Returns filed :

Classification and selection of, /8,9, 1 8

Examination of,/18, 19

Number examined,/19

Projection,/60, 61

Statistics on,/61

Verification,/ 21

S

Self-employed persons benefit

plans,/52

determination letters on,/107

Seminar, Inter-American,/36

Service to taxpayers,/2,3

Statistics, highlights,/60

Statistics of income releases,/60

Supreme Court Opinions :

Civil cases,/46

T

Tax Administration System,/56

Tax-exempt organizations,/ 32, 51

Tax Court Activities,/39, 40, 42

Tax forms,/3

Taxes, additiona l

From mathematical verification, / 14

From examination,/20

Taxpayer assistance program,/2,

3

Tax rulings

Request for,/30

Statistics on,/30

Tobacco tax(es) :

Collections,/10

Training :

Executive,/72

Other,/73

U

Unemployment insurance taxes :

Collections,/10

Refunds of,/108

Returns filed,/9

V

Verification, mathematical, results

of,/14

W

Workflow in Service and the

Courts,/10

6

~ - . ~. -0--l---.-- 1- --