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(~~) IzoANNUAL REPORT

1987

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INTERNAL REVENUE SERVICE

ANNUAL REPORT 1987

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Library
TABLE OF CONTENTS

INTRODUCTION 4

COLLECTING THE

REVENUE 6

Returns Received 8

Tax Receipts 8

Refunds 9

Penalties and Interest 9

Presidential Election Campaign Fund 9

Contributions to Reduce the Public

Debt 9

Tax Refund Offset Program I I

Earned Income Credit 11

Master File I I

Electronic Filing 11

ASSISTING THE

TAXPAYER 12

Tax Reform Act Assistance 14

Telephone Assistance 14

Taxpayer Information 14

Print Media 14

Special Advertising and Mailing

Campaigns 14

Taxpayer Education 15

Forms and Publications 15

Problem Resolution Program 15

ENFORCING THE LAW 18

Examination Results 20

Automated Examination System

20

Information Returns Program 20

Computer Assisted Audit Program and

Statistical Sampling 20

Coordinated Examination Program 20

Tax Shelters 20

Industry Specialization Program 21

Quality in Examination 21

Research to Improve Compliance 21

Windfall Profit Tax Program 21

Disclosure 21

Criminal Investigation 22

Bank Secrecy Act 22

Questionable Refund Program 22

Organized Crime and Drug Enforcement

Task Forces 23

Collection 23

Service Center Collection Branch 23

Automated Collection System 23

Resource and Workload Management

System 23

Integrated Collection System 23

Credit Card Payment of Federal

Taxes 24

International 24

Employee Plans 25

Exempt Organizations 25

Employee Plans and Exempt

Organizations Determination System

(EDS) 25

MANAGING THE

SYSTEM 26

Strategic management System 28

Research 28

Integrated Management Systems 28

Information Systems Development 26

Computer Services 28

Internal Security 29

Internal Audit 29

Integrity Program 30

Statistics of Income (SOI) 30

Director of Practice 30

Legislative Affairs 31

Commitment to Quality Service 31

General Accounting Office/Internal

Revenue Service Joint Management

Review 31

Equal Employment Opportunity 31

CHIEF COUNSEL 32

Tax Reform Legislation 34

Corporation and Individual Tax

Divisions 34

Employee Plans and Exempt

Organizations Division: Interpretative

Division; Legislation and Regulations

Division 34

International 35

Criminal Tax 35

Disclosure Litigation 35

General Litigation 35

Tax Litigation 36

Inclustr~ Specialization Program 37

Administrative Appeals 37

General Legal Services 37

Operations Division 37

STATISTICAL TABLES 41

OFFICIALS 67

Commissioners of internal Revenue 67

Acting Commissioners 68

Principal Officers of the Internal

Revenue Service 68

Chief Counsel for the Internal Revenue

Service 73

Acting Chief Counsel 73

Principal Officers of the IRS Office of

Chief Counsel 74

INTERNAL REVENUE

SERVICE ORGANIZATION

CHART 77

INTERNAL REVENUE

SERVICE MAP 78

(Regions. Districts and Service Centers)

CHIEF COUNSEL MAP 78

(Region and District Offices)

INDEX 79

3
INTRODUCTION

'1987was a year of exceptional challenge for the Internal Revenue Service. In addition to processing

record numbers of tax returns, collecting record amounts of tax, and continuing to enforce the tax laws, we were

responsible for implementing the Tax

Reform Act of 1986, legislation that

fundamentally changed our tax system.

Traditionally, when a new tax law passes. we inherit the task

of describing to American taxpayers their responsibilities under

the new law. This report details our rather extraordinary efforts

to provide guidance and assistance under the new law. Working

with their counterparts in Treasury's Office of Tax Policy, our

attorneys have produced a large volume of regulations, revenue

rulings, revenue procedures, notices. announcements. and other

forms of guidance. In the case of tax reform. descriptions and

definitions are not easily written, nor can they be quickly writ~

ten. The constant challenge is to balance taxpayers' urgent need

for guidance with quality work we can all be proud of in years

to come.

Recognizing that this law is different from those in the past.

..e have approached its implementation in altogether different

ways. Our approach has been to include taxpayers and their rep-

. e5entatives in our planning and implementation efforts and to

rework our forms. publications and programs based on what

we learned from them. Driving everything we said and did was

our commitment to quality performance and customer service.

But the challenge of implementing tax reform is not the exclusive domain of IRS. Capitalizing on the opportunity of tax reform requires a partnership effort among taxpayers, their representatives, and tax admihistrators. And more than any other

year in IRS' 125-year history. 1987 was the year we articulated

the need for partnership, laid its groundwork and produced

some excellent results.

Partnership became a watchword for internal communications.

and cooperation as well. Examples include:

I IRS management and union officials reached a historic agreement to create ajoint quality improvement process. one that

will tap the creativity and experience of all employees and help

us work together to improve the quality of our work lives.

- IRS offices all across the country are moving forward with

quality improvement projects, projects that identify local and national problem areas, methodically investigate the root causes of

problems, and recommend ways to resolve the problems and

improve the way we do business. An early beneficiary of quality

improvement techniques has been our federal tax deposit system. Ongoing projects include: revamping our taxpayer service

program, improving customer service in our automated collection sites, providing one-stop assistance to taxpayers and practitioners on taxpayer account problems, extending telephone assistance hours, looking at the reasons for repeat correspondence

with taxpayers who are responding to our computer-generated

notices, doing exit interviews with taxpayers about the quality

of our service, and addressing tough employee recruiting and

retention problems.

4

INTRODUCTION

- Recognizing that our Counsel's legal skills need not be confined to litigation. we looked for ways our attorneys could lend

their legal assistance in cases that are significant in terms of the

amount of dollars collected or the legal issues identified. We anticipate that our attorneys will assume a greater role in helping

us identify key issues as part of the industry specialization program and in other large cases.

The Tax Reform Act of 1986 effectively halted the proliferation of abusive tax shelters. but in 1987 reducing the pre-tax

reform inventory continued to be a major preoccupation of the

Counsel side of our operation. Finding administrative opportun4 within the existing system, we pushed back the timing of

the merits-based settlement offers to the examination stage. We

were not interested in settling cases prematurely or conceding

too much. Offers were based on how we determined the case

might be decided in the courts. We cautioned taxpayer's that offers would not improve with time. Indications are that many

taxpayers are opting for settling sooner rather than later.

Tax reform implementation occupied much of our time and

talent this past year. but it definitely was not our only priority.

The pages of this report reflect new and better ways to educate

and help taxpayers. They detail a host of compliance programs

designed to ensure that everybody pays a fair share of taxes,

such as our international tax enforcement effort that recognizes

the impact of a global economy and our increasing reliance on

sophisticated technology. We are looking beyond tax reform implementation to managing a tax system that will be adequate at

the turn of this century and beyond.

in the very near future, the economic challenges facing our

nation will put the Service to its toughest test. We are committed to facing that future riot only with enhanced technical skills

and state-of-the-art technology, but with considerable rEFspect

for American taxpayers and an unshakable commitment to serving them with first-rate quality work and customer service.

Lawrence B. Gibbs.

Commissioner

5

William F. Nelson,

Chief Counsel
COLLECTING THE REVENUE

~---~)ollecting taxes has never been

popular throughout our history. However. Oliver Wendell Holmes explained it

well, when he said, "Taxes are the price

we pay for a civilized society." Without

taxes our Federal government could not

exist and our country could not survive.

The Internal Revenue Service is responsible for collecting our taxes in a

fair and reasonable manner. It administer's the tax laws passed by the Congress. To collect the taxes required by

the law, IRS has set up an automated

system which maintains tax accounts for

all taxpayers.

Each year taxpayers mail their returns to an IRS service center where

technicians check returns for mathemati 1 +1., + I I

t1CA cn,%~Ul at'Y' U".Dul U a a "CL'u--oaly

information has been furnished, and

take necessary actions to correct any

errors on returns.
COLLEC17ING THE REVENUE

RETURNS RECEIVED

IRS service centers processed 193 million federal tax returns

and supplemental documents in 1987-a 2.7 percent increase

over the 188 million processed in 1986.

Over 86 million or 44.7 percent of all returns received were

individual tax returns Forms 1040 and 1040A. More than 16

million individual taxpayers--16.3 percent of all individual filers-used the simplified Form 1040EZ, compared to about 17

million in 1986, a decrease of 1.1 percent The number of individual taxpayers filing Form 1040 increased 2.8 percent from

66.7 million to 68.6 million this year. (See statistical table 6 for

details.)

The major emphasis in the returns processing program in

1987 was error prevention. "Quality improvement teams" of

managers reviewed both operations and end products to identify procedures, instructions, or other problems in the system

that might cause errors.

NUMBER OF RETURNS Grand total

FILED BY PRINCIPAL

TYPE OF RETURN

(Figures in thousands.

For details see statistical

table 6.)

Type of return

TAX RECEIPTS

Gross revenue receipts, up 13.3 percent over 1986, rose b)

$886.3 billion this year, an increase of $104 billi6fi. Individu2I

and corporation income tax collections accounted for almost

two-thirds of the total receipts. Individual tax receipts totaled

$465.5 billion. an increase Of 11.6 percent over last year. Corporation tax receipts rose 27.9 percent to $102.9 billion.

Employment taxes (social security, self-employment federal

unemployment and railroad retirement). which were 31.3 percent of the total revenue, hit $277 billion, another record high

for more than six years in a row.

Excise taxes totaled $33.3 billion, a decrease of 1.1 percent

compared to last year. (See statistical tables 1, 2, and 3 for datails.)

1986 1987

188,017 193.156

Income tax, total 145,696 150.309

Individual 102.393 103.460

Declaration of estimated

tax

Fiduciary

Partnership

Corporation

Estate tax

Gift tax

35A85 38,804

2.305 2336

1.845 1,836

3.667 3,873

72 61

103 105

Employment tax 27,921

Exempt organizations

Employee plans

Alcohol. tobacco and

firearms

Excise tax

Supplemental documents'

Non-master file returns2

28,233

487 523

2,142 2,114

520 492

1,265 1.011

9.795 10,301

17 8

'Includes Forms 104OX. 1120X 2688, 4868, 7004, 7005 and 1041 A.

zIncludes Forms 941M. 941 NMI. CT-2, 99OBL. 6069. 1042. 1120 DISC. 1120

IC DISC, 11 20FSC and 8404.

COLLECTING THE REVENUE

REFUNDS

IRS issued 80.8 million refunds totaling $97 billion in 1987

compared to 77.9 million refunds amounting to $94.4 billion in

the previous year. This year over 77.7 million individual income

taxpayers received $73.4 billion in refunds. including $371 million in interest. (Note: Individual income refund figures in statistical tables 4 and 5 include fiduciary and partnership returns.

See footnotes in these tables.)

By the end of the fiscal year, IRS had issued refunds with interest on 1.6 million current-year individual income tax returns

timely filed but not refunded during the statutory interest-free

period, compared to 3 million last year. Individual refunds this

year averaged $943 compared to an average of $946 in 1986.

Due to reporting inconsistencies, the average refund for 1986

was previously reported as $982. The processing of refund

claims for Windfall Profit Tax resulted in refunds amounting to

$1 billion, of which $429 million represented interest (For details, see statistical tables 4 and 5.)

PENALTIES AND INTEREST

The law requires that IRS charge penalties for failure-to-file

returns. late payments, payments with bad checks, negligence,

false withholding statements, fraud and other violations. It also

gives IRS the authority to cancel or lower an interest charge

when it is notjustified.

In 1987. IRS imposed 22.9 million penalties totaling $5.3 billion. Of these penalties. 12 million were imposed on individuals

for a total of $2.62 billion and 10.9 million on business returns,

totaling $2.64 billion. Interest charges totaled $4.1 billion on individual returns with reductions of $472.7 million. These figures are exclusive of 21 1 thousand penalties totaling $4.7 billion

i

mposed but not reported in prior years. (Statistical table

14 includes both current year and these prior year penalties.)

Interest charged to business returns totaled $7.4 billion, lowered by $2.3 billion. Generally, the IRS may not reduce interest

due on taxes owed. but in cases where interest is notjustified,

it may be lowered or canceled as appropriate.

PRESIDENTIAL ELECTION CAMPAIGN

FUND

Citizens and resident aliens who owe at least one dollar in

Federal income tax may designate one dollar of the tax to the

Presidential Election Campaign Fund. In 1987, 22 percent of

the total individual income tax returns, or 22.4 million. showed

designations to this fund of $33.2 million. The cumulative

amount credited to the fund since it began in 1972 is $500.4

million.

CONTRIBUTIONS TO REDUCE THE

PUBLIC DEBT

Last year was the fifth year federal tax forms carried a message inviting taxpayers to make voluntary contributions to reduce the-public debt. Taxpayer's could send separate checks payable to the Bureau of Public Debt with their federal tax returns

and take a deduction on the next year's tax return. subject to

limitations on charitable deductions. In 1987. there were 723

contributions. totaling $159,000, making the number of contributions 10.382 and the total contributed $1.5 million.

8
NETINTERNAL

REVENUE

COLLECTIONS

(in thousands of

dollars)

GROSSINTERNAL

REVENUE

COLLEL71ONS

(in thousands of

dollars. For details

see stabstical

table 1.)

COLLECTING THE REVENUE

Net Collections

Gross Percent

Source Collections Refunds' Amount of total

Grand total 886290.590 94,992297 791.298,293,,' 100.0

Corporation income 102.858,985 18.933215 83.925,770 10.6

taxes

Individual income taxes 465.452.486 74.283,5991 391.168.887 49.4

Employment taxes. total 2T7,00OA69 689370 276.311.098 34.9

Old-age. survivor's. 266.616.935 515.590 266,101.345 33.6

disability and hospital

insurance

Railroad retirement 4.151.534 21.557 4.129,977 0.5

Unemployment 6232.000 152 224 6,079.777 0.8

insurance

Estate and gift taxes 7.667,670 175.030 7A92.640 C1.9

Excise taxes 33310.980 911.083 32.399,897 4.1

'Does not inducle interest paid on refunds. In the narrative. the total refund figure of $97.0 billion includes

$2.0 billion. of interest

~Refunds of Forms 1040. 1040A and 1040EZ including withheld taxes. mmus FICA.

Source

Percent of

1987 collections

Increase or decrease

1986 1987 Amount Percent

Grand total 100.0 782251212 886290.590 104.038.778 13.3

Income taxes. total 64.1 497.406.391 568.311.471 70.905.080 14.3

Corporauo

Ind,vidual, total

Withheld by employers~

Othel~

Employment taxes, total

11.6 80.441,620 102.858,985 22.417365 27.9

52.5 r 416.964,7711 465.452,4862 48.487.715 11.6

4 r 314B38-34W 322,195.330~ 7.656.990 24

16.1 1 OZ. 1 26,431 142.957,156 40.B30.725 400

313 r 243,978-380 277DW.469 33DZ2DU 135

Old-age, -wor's. 30.1 234,879.738 266.616.935 31.737.197 135

disability and hospital

insurance. total

Federal insurance 28.5 219.171,256 252.629-343 33,458.087 153

contributions

Self-employment 1.6 15.708.4132 13.987.592 (1.720.890) -11.0

insurance contributions

Unemployment insurance 0.7 r 5265.002 6232.000 966.998

Railroad retirement 0.5 3,a33,640 4.151.534 317.894 8.3

Estate and gift taxes 0.9 7.194.956 7,667.670 472.715 6.6

Excise taxes. total 3.8 33.672.086 33.310.980 (361.106) _11

Alcohol & tolbacco 13 r 10233.303 11.097,677 864.374 8.4

Other 2.5 r 23A38,783 22213303 (1 22SASO) -52

Includes presidential election campaign fund amounting to employment income. The amount of OASDHI tax

$35.933A81. collections shown is based on estimates made by the

21riducles presidential election campaign funcl amounting to Secretary of the Treasury pursuant to the provisions of

$33.179268 section 201 (a) of the Social Security Act as amended and

3Estimated collections of individual income tax withheld includes all OASDHI taxes. The estimates shown for the

are not reported separately from old-age. survivor's. two categories of individual income taxes were derived by

disability and hospital insurance (OASDHI) taxes on wages subtracting the OASDHI tax estimates from the combined

and salaries. Similarly. collections of individual income tax totals reported.

not withheld are combined with OASDHI taxes on self- r = revised

10

COLLECTING THE REVENUE

TAX REFUND OFFSET PROGRAM ELECTRONIC FILING

if a taxpayer fails to make support payments to a child or

spouse who receives public assistance, Congress requires the IRS

to withhold all or part of the taxpayer*s income tax refund to

cover the delinquent payments. This requirement has been in effect since 1981. Since 1986, the IRS has also been required to

apply individual income tax refunds to support payments for a

child or spouse who is not on welfare and to debts owed to

some federal agencies.

Through an agreement with the Department of Health and

Human Services, IRS acts as a collection agent forthe state welfare agencies in all child or spouse support cases. The refund

amounts reimburse the agencies for the support they furnish

through aid to families with dependent children. The state agencies turn the funds over to the parents having custody of the

children in non-welfare cases. In 1987, refunds totaling

662,592 were offset in the amount of $339 million to cover

delinquent payments.

Other agreements with the Departments of Housing and Urban Development, Agriculture, Education. Defense, Treasury,

Justice. Health and Human Services, and the Veterans' and Small

Business Administrations require the IRS to act as a collection

agent for delinquent federal debts. During 1987, refunds were

o set for this purpose on 483.121 individual income tax returns in the amount of $222.5 million.

EARNED INCOME CREDIT

Low income taxpayers who keep a home for themselves and

at least one dependent may claim the earned income credit. Taxpayers who qualify for the credit may choose to get it in their

paychecks in the form of advance payments during the year,

rather than wait and file for it on their tax returns after the

year is over. In 1987, 6.2 million taxpayers claimed a total of

$2 billion. Employers reported that $2.5 billion had been paid

out in advance earned income credits during 1987.

MASTER FILE

The number of taxpayer accounts on the Individual Master

File grew to 141.4 million by the end of September 1987. a

1.9 percent increase over 1986. The Business Master File had

282.million accounts, a 1.4 percent increase over the previous

year. During 1987, the National Computer Center processed

8063 million individual and business master file transactions, an

increase of 137.2 million, or nearly 20.5 percent over 1986.

IRS pioneered electronic accounting with the creation of the

National Computer Center in Martinsburg, West Virginia, in the

early 1960's where it created the IRS masterfile of taxpayer accounts. IRS service centers traditionally transfer data from individual tax returns to electronic media for use on computers.

Electronic filing eliminates costly manual steps in processing returns. improves the quality of returris filed. and reduces the

time between filing and receipt of reftinds. Electronic filing of

individual income tax returns with refunds became an operadonal program for the 1987 processing year. The original pilot

project included the metropolitan areas of Cincinnati, Phoenix,

and Raleigh-Durham-Fayetteville. Albany. New York: Milwaukee.

Wisconsin: Norfolk. Virginia. and Sacramento, California were

added this year.

Electronic fund transfer/direct deposit was tested in the three

pilot areas and will be included in the further expansion of the

electronic filing operational program to 16 districts for the

1988 processing year.

Electronic/magnetic media filing of fiduciary and partnership

returns was tested for processing year 1987 with no geographic restriction on location of filers. The test will be expanded to cover Forms 11 20S and 5500 (C and R) for processing year 1988.

The IRS is studying a new "answer sheet" return specifically

designed to be scanned by optical character recognition (OCR)

equipment which will convert the information to magnetic media for computer use. The Form 1040 OCR data will be processed through the electronic filing system.

In an attempt to reduce drug trafficking and money laundering, the Congress in 1970 passed the Bank Secrecy Act which

requires that cash transactions of $10.000 or more must be reported to IRS on currency transaction reports. In 1987 the Detroit Data Center began processing magnetically filed Currency

Transaction Reports. Both IRS and the institutions involved realize substantial monetary savings with a projected 10 percent reduction in error's in the reports.

11
ASSISTING THE TAXPAYER

I/-

here is more to collecting taxes

than just processing returns and sending out notices. Most taxpayers want

and try to pay their fair share of taxes.

However, with increasingly complex tax

laws and regulations. taxpayers have

more questions than ever before.
ASSISTING THE TAXPAYER

The IRS provides many kinds of assistance to taxpayers to

help them complete their tax returns. Included are telephone assistance, televised tax programs, audio and video cassette programs. walk-in assistance. workshops and seminars. Also available are several volunteer programs which offer free help to

people who need assistance in filling out their returns. and taxpayers can always write or call the IRS to obtain needed forms

and free publications which explain procedures for completing

tax forms.

TAX REFORM ACT AS§ISTANCE

vision panel discussion, public service annouacements and audio

and video tapes in English and Spanish were aired,on tax reform and tax form preparation. -

I

I

A two-hour tax program in February and a sp&ial one-hour

program in September. devoted entirely to the 'rax Reform Act,

aired over 180 public broadcasting stations and 4.1 million people watched them. A language clinic reached about 877,000

Spanish television viewers, and for the second year a syndicated

television tax program ran on 155 commercial stations, covering

86 percent of the country. IRS produced electronic filing publicity materials for distribution to practitioner's at Outreach SEminars, and a slide presentation for seminar speakers.

To ensure that IRS employees and the public had the latest

information on the Tax Reform Act of 1986, a cross-functional

group of employees worked together to develop training and

publicity materials. Within one month after the legislation was

signed. IRS employees had training materials and the public was

being provided answers to questions on tax changes through

items such as tax scripts for the Tele-Tax program and about

100 questions and answers sheets. In addition. several TaxNews

releases relating to the 1986 and 1987 tax provisions were issued to IRS employees.

TELEPHONE ASSISTANCE .

IRS provided convenient avenues of help to taxpayers through

three forms of telephone assistance: the toll-free system with

trained staff to help with account problems; Tele-Tax for either

recorded technical tax law information or the status of the current year's refund; and a special toll-free service to order forms

and publications.

A technical upgrade and expansion of Tele-Tax to 28 sites allowed taxpayer service to provide assistance to more than 10

million taxpayers-an increase of over 2 million calls from

1986. The technical upgrade alone increased efficiency of existing lines by 33 percent.

TAXPAYER INFORMATION

IRS provided a variety of materials on taxes for both electronic and print media. Public service programming was available to over 1200 television stations and 10.000 radio stations.

IRS produced 13 television and many radio public service announcements during the 1967 tax filing season. A cable telePRINT MEDIA

Materials made available for print media included several tax

supplements. special clipsheets dealing with tax reform. public

service advertisements for daily and weekly newspapers and for

national magazines and talking-phone books special yellow page

directories. Over 1,000 newspapers published special tax sections, a 17 percent increase over 1986.

SPECIAL ADVERTISING AND

MAILING CAMPAIGNS

To better inform the public on tax law changes, IRS conducted several first-time mailing and advertising campaigns.

Two special mailings, concerning Form W-4 requirements and

the new Form W-41A, were made to over 6 million employers. A

flyer was also sent with refund checks to all 68 million individuals who received tax refunds in 1987 explaining requirements

for filing W-4 or W-4A and social security numbers for dependents age 5 or over.

IRS made plans to mail an information brochure about the

new tax law changes to more than 90 million taxpayers encouraging them to order publications needed to start earlier than

ever before in preparing their tax returns.

Another IRS first occurred with the contracting of the Advertising Council to develop a nationwide advertising campaign. It

will help IRS inform the American public about tax law changes

and encourage taxpayers to file early through the theme "Make

taxes less taxing. Do them today." The public service advertising

campaign begins early in 1988.

IRS. in another first-time event conducted a nationwide tele14

ASSISTING THE TAXPAYER

conference transmitted live via satellite to sites near all 80 IRS

offices. It allowed IRS Commissioner Lawrence Gibbs and senior

officials from taxpayer service the opportunity to address all

taxpayer service/public affairs managers regarding filing season

readiness. and enabled them to call in questions directly to the

national office officials.

Plans were made for a second nationwide teleconference. IRS

national office and field officials will discuss the forthcoming Adverdsing Council campaign with the tax practitioner community.

and answer questions concerning the filing season and tax law

changes.

nation. The test results pointed out areas of the forms and inc

structions that were causing problems for taxpayers. IRS reelved many worthwhile suggestions from these sources for improvements to the forms, and included many of them in the

final forms.

IRS developed 50 new tax forms and eliminated 7 forms, due

to tax law changes. Thirteen new taxpayer information publications were also developed with a special effort to use only the

simplest language possible. Two of these. Publications 920 and

921. provide detailed explanations on the major tax law changes

as they affect individuals and corporations.

TAXPAYER EDUCATION

Educating the public on tax-law changes and providing free

tax assistance to those with special needs are primary objectives

for IRS. Two programs, sponsored by IRS, utilized trained volunteers to help people who needed assistance in filling out their

tax returns. The Volunteer Income Tax Assistance (VITA) and

Tax Counseling for the Elderly (TCE) programs assisted over

1.7 million low-income, non-English speaking, handicapped and

elderly taxpayers at over 12,000 sites in communities across the

country.

Tax assistance and information were also provided to

903.000 taxpayers. more than double last year. through the - Community Outreach Tax Assistance program. This program

was especially helpful since it was offered at convenient times and locations in the community for taxpayers who were unable

to seek help at IRS offices during normal business hours. IRS

representatives explained how the many Tax Reform Act

changes affect taxpayers' 1987 returns, and discussed provi- sions of particular interest to groups such as small business

owners, self-employed individuals, farmers and retirees.

Taxpayer service again distributed instructional materials to

high school and adult basic education students through the Unclerstanding Taxes Program, presented seminars on tax topics, and participated in tax practitioner institutes.

FORMS AND PUBLICATIONS

IRS issued advance proofs of most of the major 1 987 tax

forms earlier this year than ever before. Public comments were

invited and internal reviews made to improve the forms. under

contract with a private firm. IRS conducted focus group testing

of various high visibility forms at several sites throughout the

PROBLEM RESOLUTION PROGRAM

The Problem Resolution Program (PRP) assisted 407.000

taxpayers in resolving tax problems that had not been resolved

through normal procedures. It is directed by the Taxpayer Ombudsman, a member of the Commissioner's immediate staff.

The program was established to handle taxpayers' unusual

problems and complaints. but also has two other major goals.

First, PRP is responsible for identifying the underlying causes of

taxpayer problems so that corrective action can be taken to prevent their recurrence. Second, problem resolution employees

represent taxpayers' interests and concerns within IRS during

program development and implementation to prevent problems

from arising. In accomplishing these goals, PRP recommendatons in 1987 resulted in:

1. requiring additional research that will prevent unnecessary in- valid social security number notices:

2. improving Schedule B (Form 1040) instructions to prevent

future unnecessary underreporter notices:

3. including text about common taxpayer errors in the appropriate

Tele-Tax assistance messages;

4. adding instructions to abate federal tax deposit penalty when

the taxpayer provides documentation of timely deposits even

though the bank's stamped date indicates otherwise; and

5. changing exempt organization return processing procedures to

prevent the assertion of unwarranted late filing penalties.

Problems resolution officers are located in all offices of the

IRS. Besides preventing and correcting problems, they publicize

PRP through television and radio announcements, articles and

advertisements, and meet regularly with tax practitioner groups, Congressional staffs. and other outside groups regarding the

program.

15
,I

ASSISTING THE TAXPAYER

ASSISTING TAXPAYERS

J

WRITE. CALL OR WALK-IN

1987 1986

ASSISTING THE TAXPAYER

TAXPAYER EDUCATION

Total Requests for Assistance 54.1 M 5413M Taxpayer Returns Assisted 13M I.8M

Toll-Free Telephone 34.7M 37.9M VITA & TCE Volunteers 57.000 -59000

Account & Problem Resolution 5AM 62M Students Who Received Understanding

Technical 2.6M 2.6M Taxes Materials 3.7M 4.OM

Service for the Deaf 1,660 2.338 Workshops

Non Toll-Free Telephone .3M 3M Small Business 47.000 39.000

Tele-Tax 10.9m 7.c)M Tax Practitioners 36.000 32.000

Automated Response 23M I'SM Institutes 199 230 Refund 8.6M 6AM Law & Graduate Accounting Schools 12 22

Outreach 903,000 376.000 TAXPAYER INFORMATION

Community Sites 12,000 8.000 Free Advertising Received

Correspondence 169.000 241:000. $45.OM $35.OM

Material Sent to Print and

Walk-in 7.1 M 8.1 M Electronic News Media 41.000 Permanent Offices 39.000 411 3,15 Television Clinics/Special Programs 17 Filing Season Only 13 56 115

With F-i-I --- A-imt 1 .1

Radio Clinics -

7 4

Tax Forms & Instructions Distributed

Libraries. Banks & Postal Serv.

DISASTER/EMERGENCY ASSISTANCE

292.OM

54,400

298.OM

52.000

Estimated Viewers/Listeners

Newspapers Printing Tax Supplements 1,049 900

Estimated Circulation

Public Service Ads Printed

1987 1986

17.OM 12.OM

-0M 23.OM

4,700 4573 states 18 22 Estimated Circulation 97.OM 94.OM Counties 188 250 Estimated Ad Value (Supplement & Ads) $5.7M $4.8M Cities/Towns/Communifles 53 58 Billboards 2,000 1.900

16 17
"HE, LA

I I I syst~rn orttaxati , o~-is voI'unta.ry " Z:,o 6plian6i w'6'taxl~ws..Hidbly- inedIRS.

:p6rso:6hel,work'io einsurethat7all tax- I

payers,pay: their,fa'ir ~,shaT-eof taxes, ccil-..

i&d tb6-rcorrect 'amount of Itaxes,,due.,

and when necessary bnag-criminal violators of thetax,law tojustice.
i

I

ENFORCING THE LAW

IRS continued to make refinements in the automated examination systems and new formulas were developed, due to

changes in the tax laws. for selecting both individual and corporation returns for examination. Computerized underreporter

document matching programs detected more than 2.2 million

apparent discrepancies between figures reported on tax returns

and amounts on reports filed by payers of income. resulting in

$1.2 billion additional tax and penalties.

An increased compliance program focused on abusive tax

shelter promoters was effective in reducing the number of abusive tax shelters marketed. The automated collection system

completed its third year, and collected nearly two-thirds of all

delinquent accounts received without resorting to additional

field processing. The office of assistant commissioner, international, provided program direction for the second year on all

IRS international matters in developing, executing. and evaluating worldwide compliance and assistance programs.

INFORMATION RETURNS PROGRAM

I Computerized document matching detected mbre than 2.2

million apparent discrepancies between income a~d deductions

reported on tax and information returns in 1687. IRS detected

2.5 million taxpayers who apparently failed to file federal tax

returns.

Service centers received over 900 million information documents reflecting wages, interest and dividend payments. contributions to individual retirement arrangements and simplified

employee plans. mortgage interest deductions, and other transactions used in tax computations.

COMPUTER ASSISTED AUDIT PROGRAM

AND STATISTICAL SAMPLING

EXAMINATION RESULTS

In 1987. IRS examined 13 million returns which resulted in

$19.6 billion recommended additional tax and penalties. and refunds totaling $689 million. Through the service center correction program. .5 million returns were corrected, resulting in

recommended additional tax and penalties of $477 million.

Through its efforts in districts and service centers. the examination function examined, verified or corrected 1.79 percent of all

returns filed in 1987.

AUTOMATED EXAMINATION SYSTEM

More than 16.000 revenue agents have received training for

"laptop" computers, reducing the time required for many laborintensive tasks. IRS has over 17.000 portable computers for use

by revenue agents. I AES established work sites in Dallas (general examination

workoenter) and Cincinnati (group and management support).

These locations operate with assistance from computer services

and employee plans/exempt organizations personnel.

Refinements in the AES basic workcenter this year included, a

reduction in the number of required operating disks. adding

power, and simplifying procedures. Development was directed

toward the design and implementation of specialty workoenters

for use by engineers. estate and gift attorneys, excise examiners

and employment tax agents.

Computer audit specialists assist revenue agents in cases involving computerized records, and are responsible for securing

record-retention agreements with certain large taxpayer corporations. They are trained in advanced statistical inference techniques, which they apply to examinations, and serve as expert

assistants to other revenue agents and examination specialists.

COORDINATED EXAMINATION

PROGRAM

The Coordinated Examination Program (CEP) recommended

tax deficiencies and penalties totaling $7.4 billion in 1987. The

CEP included 1,458 of the largest and most complex domestic

and foreign-controlled corporations. Teams of the most experienced examiners and specialists in the IRS did examinations of

these corporations.

TAX SHELTERS

IRS examined 151,954 returns with tax shelter issues in

1987. Examination of these returns resulted in total recommended additional tax and penalties of $3.3 billion.

A combined effort by examination, chief counsel, and the appeals division to settle old tax shelter cases began in 1987. The

IRC 6700/7408 compliance program which focused on abusive

tax shelter promoters was effective in reducing the number of

abusive tax shelters marketed. During 1987. a total of 5,K37

tax shelter registration numbers were issued by IRS.

20

ENFORCING THE LAW

-INDUSTRY SPECIALIZATION

PROGRAM

The Industry Specialization Program. consisting of 15 designated industries and 5 industry studies, was established to better identify and develop issues and ensure uniform and consistent treatment of issues nationwide. The industry specialists are

now more involved in the legislative. regulation and ruling processes.

Coordination between examination and chief counsel increased

in an attempt to identify coordinated issues for litigation to establish precedence. Each industry specialist was assigned a field

attorney to help in developing issues for litigation.

QUALITY IN EXAMINATION

Examination continued implementing and perfecting several

quality improvement systems including all phases of the Automated Examination System and beginning the development of

customer-service training material for revenue agents. tax auditor's and tax examiners.

The Line Management Quality Assurance System. implemented

in a number of districts, requires the first-line manager to determine the examiner's adherence to the auditing standards, and provides immediate feedback to the examiner.

Income Tax Technical Field Conferences, resumed as ajoint

effort of examination and chief counsel (technical and international) offices, provided an opportunity for field and technical

personnel to discuss technical issues of mutual concern.

IRS implemented the nationwide Coordinator Agent/Auditor Program which uses experienced agents/auditor's to transfer au- diting skills and techniques to less experienced examiners

through case consultation and assistance on issues.

RESEARCH TO IMPROVE

COMPLIANCE

The Taxpayer Compliance Measurement Program (TCMP) is based on the examination of a stratified random sample of returns. The resulting data is used to develop discriminant infor- mation function (DIF) formulas, which are the primary method of selecting returns for examination.

New DIF formulas for both individuals and corporations were developed in response to changes in the tax law. The first com- plete TCMP survey of partnership returns was completed in 1985. IRS used the data to form new partnership examination

classes and to develop partnership selection formulas. Returns

filed in 1988 will be scored for possible examination based on

these new DIF formulas.

IRS conducts research on returns containing specific issues where there appears to be pockets of noncompliance. Results of these studies are used to determine whether other selection systems to supplement DIF are needed. During 1987. the IRS con- ducted research on such issues as tip income reporting in the

food and beverage industry and employment tax withholding

compliance.

WINDFALL PROFIT TAX PROGRAM

Emphasis was placed on the examination of large windfall

oprofit tax cases with high tax potential and on the closing of

Id-year cases. Examinations closed in 1987 resulted in deficiencies of over $1 billion.

DISCLOSURE

IRS responded to 12.422 requests made in calendar year

1986 under the Freedom of Information and Privacy Acts, and

provided services to 13.110 people in the Freedom of Information Reading Room.

Under the Federal/State Exchange. 50 state tax agencies requested extracts from the IRS files. and 40 state tax agencies

received copies of CP-2000 adjustments. The IRS and the states

also exchanged results of their enforcement efforts.

Approximately 45 federal agencies and 75 state tax agencies

received federal tax information subject to confidentiality safeguarding. More that 50 state and local welfare agencies received

information to verify eligibility for benefit programs. Educational institutions received tax information for collection of defaulted student loans. IRS national office and field disclosure

personnel conduct on-site safeguard reviews of organizations

receiving federal tax information to prevent unauthorized disclosures of returns and return information.

The IRS processed approximately 35 requests for volume letter forwarding services of 50 or more letters each. The IRS

may agree to forward letters from both private and government agencies to individuals at the latest address available in

Service records. Specific humane circumstances must exist for private requesters to participate in this program.

21
RESULTS OF

CRIMINAL Investigations

INVESTIGATION Initiated

ACTIVITY

1986-1987

Investigations

Completions

Prosecution

Recommendations

Indictments

informations

Convictions

ENFORCING THE LAW

Fraudulent

Tax

Shelters

Illegal Bank Secrecy -

Tax Narcotics Act All

Protesters Related (Title 31) Others Total

1986 1987 1986 1987 1986 1987 1986 1987 1986 lgr~ 1986 1987

312 147 338 266 1264 1263 354 392 3593 3443 5861 55 1 1

335 338 464 341 1343 1316 369 307 3576 3293 5836 5595

Z31 242 299 243 956 996 275 185 1763 1860 3524 3526

124 130 338 273 817 898 204 174 1471 1431 2954 2~106

107 94 296 275 666 680 108 116 1283 1391 2460 2556

Sentencings 80 95 319 315 662 662 111 89 1246 1440 2418 2EOI

Percent Receiving

Pnson Sentences 59 59

CRIMINAL INVESTIGATION

Voluntary compliance with the tax laws in the United States

self-assessment system of taxation relies heavily on the deterrent effect of successful criminal prosecutions. IRS criminal investigators have long been recognized as being among the best

in their field. Today, organized crime. abusive tax shelters, illegal

tax protesters, high-level drug dealers, bank secrecy act and

money laundering violations and false claims against the government are among their priority enforcement targets.

Not only do the courts hand down substantial prison sentences. but those convicted must also pay fines. civil taxes and

penalties besides serving prison sentences.

BANK SECRECY ACT

The Bank Secrecy Act requires financial institutions to report

currency deposits or withdrawals of more than $10,000. In one

violation of the act. a former bank investment officer was sentenced to five years in prison. fined $250.000, and assessed

60 62 73 77 60 39 56 57 61 63

$9.700 in prosecution costs for her part in a conspiracy tc

launder $36 million ihrough San Diego banks and a currency

exchange.

In Florida. 10 Colombian citizens were indicted for violating

the Bank Secrecy Act. Agents also seized $510,000 in U.S. currency and executed 32 search and seizure warrants on accounts

in various banks in the area resulting in the seizure of another

$634,000.

QUESTIONABLE REFUND PROGRAM

This program Seeks to uncover those individuals who file

false or fictitious tax returns for the purpose of getting refunds

to which they are not entitled. Detection teams in the service

centers intercepted more than $113 million in fictitious claims

for multiple refunds and referred 627 schemes to district offices for investigation.

A Florida man was arrested in one case for filing more than

350 fictitious tax returns, claiming an excess of $1.5 million in

refunds. In another scheme, a father and son filed hundreds of

fraudulent tax returns to try to cheat the goverriment of an estimated $5.8 million. Both were sentenced to prison terms.

ENFORCING THE LAW

ORGANIZED CRIME AND DRUG

ENFORCEMENT TASK FORCES

IRS is a significant participant in the President's Organized

Crime Drug Enforcement Task Forces. Investigation of narcotics

traffickers involves in-depth financial analysis by special agents

of the criminal investigation division. These investigations are in

direct correlation with effective tax administration and the fostering of voluntary compliance among individuals receiving incomes from illegal sources.

A significant case prosecuted in Pennsylvania on drug and tax

counts and continuing criminal enterprise charges resulted in a

45-year prison sentence, a fine of $100,000, and a concurrent

40-year term on eight counts of tax evasion. In Detroit. the

head of what was described as the "largest drug smuggling organization ever uncovered in the United States." was sentenced

to 25-years in prison. He pled guilty to a variety of charges including income tax evasion, conducting a continuing criminal enterprise and other drug-related charges. The case also resulted

in ten criminal tax charges against bank officials who assisted in

the laundering of illicit funds.

Substitute for Return Program. This program is expected to

process between 500.000 to 600.000 individual returns during

fiscal year 1988 with assessments in excess of $2.5 billion. Collection developed an automated system for preparing and assessing returns for individuals who have income reported on information returns, but who have not filed their individual tax

returns, after being so notified during normal notice issuance.

This program is anticipated to have a major impact on non-compliance. SCCB also adjusts employment tax returns based on

state audit information.

AUTOMATED COLLECTION SYSTEM

The Automated Collection System (ACS) completed its third

full year of operation and increased in effectiveness to the point

that 65 percent of all delinquent account dispositions were resolved through full payment.

RESOURCE AND WORKLOAD

MANAGEMENT SYSTEM

COLLECTION

Collection is responsible for taxes where the amount owed is

not in dispute, but remains unpaid. Collection secured $22.9 billion in 1987, compared with $19.6 billion in 1986. Of that

sum, $ 9.9 billion was collected as a result of the first bill. Subsequent billings yielded $5.6 billion. Additional action on taxpayer delinquent accounts generated $6.4 billion, with various

other programs yielding $1.0 billion.

A new program increased examination of employment tax returns where improper classification of workers as employees or

independent contractors can affect the amount of taxes withheld.

SERVICE CENTER COLLECTION

BRANCH -

The Service Center Collection Branch (SCCB) is collection's

first point of contact with taxpayers who may be delinquent in

filing tax returns and paying taxes. SCCB expanded its role in

securing delinquent returns by assuming responsibility for the

When taxpayers fail to resolve their accounts in ACS. a new

system of inventory control either issues the accounts to the

collection field or holds them in a sequence file awaiting processing. Accounts are then assigned, based on their predicted

yield and on the staff available.

INTEGRATED COLLECTION SYSTEM

The Integrated Collection System (ICS) Project is a comprehensive automation effort to streamline a labor-intensive paper

system. and thereby improve quality, productivity. timeliness of

collection case processing. and responsiveness to taxpayers. Using commercially available hardware and software. the ICS will

employ a common data base to facilitate the exchange of informadon among all four collection organizational units-the collection field function, the special procedures function. the service

center collection branch function, and the automated collection

system.

1

22 23
ENFORCING THE LAW

CREDIT CARD PAYMENT OF

FEDERAL TAXES

During the past year, IRS evaluated the possibility of taxpayers using credit cards to pay federal taxes. IRS believes that taxpayers should be afforded the convenience of using any commercially acceptable forms of payment to pay their taxes.

However, for IRS to accept credit card payments there must

be authorizing legislation. A legislative proposal was drafted for

inclusion in the current legislative program to amend Internal

Revenue Code 6311 to allow the Secretary of the Treasury to

accept credit card payments of federal taxes.

Accepting payment of taxes by credit card will help reduce

the volume of accounts receivable and the number of installment agreements, and will provide substantial revenue sooner.

In recommending the acceptance of credit card tax payments,

the IRS is in no way suggesting or contributing to any act to

encourage the increase of consumer debt The debt (unpaid

taxes) is already there. The cost to the taxpayer for a credit

card tax payment may be less than the amount of interest and

late payment penalty that would be charged if a liability is not

paid by the date prescribed.

INTERNATIONAL

The office of the assistant commissioner (international) provides program leadership and direction for all international tax

matters, including the development. execution, and evaluation of

multi-furictional compliance and assistance programs on a

worldwide basis. It was created to effectively address IRS's tax

adm imstration needs caused by the increasing impact of global

economic activity. The growing importance of economic internationalization on the tax system was reflected by the emphasis

Congress placed upon international issues in the Tax Reform Act

of 1986.

International's commitment to provide quality customer service in 1987 extended beyond the borders of the United States.

International taxpayer assistance expanded its base of scheduled

taxpayer service visits to U.S. embassies and consulates-86 cities within 52 countries-helping approximately 300,000 U.S.

citizens living abroad and in U.S. territories and p9ssessions,

Taxpayer education was a vital part of expanded overseas service, which included Volunteer Income Tax Assistance (VITA) and

Outreach Programs throughout the world. Year-round assistance was provided at 14 overseas posts.

In the enforcement arena, International provided leadership

and direction to 505 specially trained examiners based in 23

district offices within the U. S. The 25 percent increase in international staffing this year supports the growing significance

placed on international issues. This is the first step toward a

substantial increase in international examiner resources.

During 1987, international enforcement recommended: (1)

net reductions in allowable foreign tax credits of $3.2 billion:

(2) adjustments increasing taxable income by $5.847 billion. decreasing taxable income by $6.033 billion. for a net decrease of

$186 million; (3) penalties of $602 million; and (4) increases to

other foreign taxes of $300 million. Working to achieve more

effective compliance, international initiated studies to identify

areas of non-compliance and determine levels of compliance. Direction was aimed primarily at multinational corporations in

areas such as correct payments of U.S. income tax by foreigncontrolled corporations, industry-wide pricing, and transfer-pricIng transactions.

The thirty-seven tax treaties that the U.S. has in force worldwide are administered by international. These treaties provide

for exchanges of information, simultaneous examinations. relief

from double taxation. and routine sharing of information returns. In 1987, international realized completed negotiations of

100 cases of U.S. taxpayers requesting relief from double taxation and over 350 requests for information from treaty partners.

Exchanges of information also occurred between IRS and

state governments. as well as cooperative assistance efforts. IRS

actively participated in the National Association of Tax Administrator's (NATA). State tax administrators and IRS staff implemented collaborative actions in the Tele-Tax. Volunteer Income

Tax Assistance/Volunteer Counseling for the Elderly, and Out

reach taxpayer assistance programs. Cooperation was evident in

the creation of "one-stop shopping" for federal and state forms,

and the efficient sharing of resources.

24

ENFORCING THE LAW

International eAcutives attended meetings of international tax

administrators exchanging views on cooperative measures, compliance problems. and tax issues. Major organizations involved

with these issues included the Group of Four, the Pacific Association of Tax Administrators (PATA), and the Organization for

Economic Cooperation and Development (OECD), reflecting interaction with 24 countries.

IRS also provides technical and administradve assistance to

foreign governments wanting to improve their tax systems.

During 1987, International assisted Egypt. Indonesia, Jordan,

Liberia, Saudi Arabia, and Senegal in modernizing and strengthening their tax systems. Assistance efforts ranged from developing compliance measures to training of technical personnel to

developing strategic initiatives for effective management of tax

systems. As a member of the Inter-American Center of Tax Administrators (CIAT), international exchanges ideas, arranges

study programs, and provides technical advice about techniques

and technologies employed to accomplish the objectives of tax

administration programs.

To strengthen voluntary compliance and achieve a more effective international tax program, an aggressive global media campaign was undertaken to reach taxpayers abroad. In addition,

research and compliance studies were initiated which are aimed

at detecting non-compliance. These assistance and education efforts. coupled with research and program clevelopment. are expected to result in improved compliance. Planned initiatives ior

1988 will move international forward to continue systemic improvements for returns processing, increased expansion of tollfree taxpayer assistance to overseas countries. and enhanced

training of international examiners.

EMPLOYEE PLANS

The employee plans office prepared a series of plain-language

notices on provisions of the Tax Reform Act of 1986 relating to

individual retirement arrangements and distributions from qualified plans, developed a Master and Prototype Program for Section 401 (k) cash or deferred arrangements, and prepared technical guidance for the more complicated provision of tax reform.

including information on limitations on contributions and benefits and certain distributions from qualified plans.

EXEMPT ORGANIZATIONS

Responsibility for many of the laws that exempt organizations

from tax falls under the exempt organizations function.

During 1987. IRS issued 405 technical advice memoranda.

IRS also acted on 63.387 applications and requests for rulings

(including some National Office rulings not shown in statistical

table 21) from organizations and examined 18,094 exempt organization returns.

To measure compliance with the tax laws. IRS initiated special-emphasis programs directed toward exempt organizations

that appeared to be operated in a discriminatory manner or to

be engaged in lobbying and political activities.

A review of internal procedures was completed. resulting in a

revision of the method the IRS uses to compute the voluntary

compliance level of exempt organizations.

EMPLOYEE PLANS AND EXEMPT

ORGANIZATIONS DETERMINATION

SYSTEM (EDS)

The employee plans function enforces the tax laws governing

pension plans by issuing letters determining whether or not a

plan qualifies under the law, examining returns to ensure that

plans are complying with the law, and publishing rulings to clarify the law. In 1987, IRS issued 300,455 of these letters (as

shown in statistical table IS) and examined 8,669 returns.

The EP/EO Determination System (EDS) is an integrated inventory control and management information system that tracks

and controls determination cases. matches applications with historical data and automates case assignments. In 1987. two subsystems of EDS were successfully installed in all key district offices.

25
AAGINGTHESYSTEM

~Al

3; , anagement of the tax system at

the lowest cost to the taxpayers, without compromising the quality of operations and service to taxpayers is an important part of the IRS mission. The

Tax Reform Act of 1986 presented

major management challenges for IRS

inimplementing the many tax law

changes. Research continued to

.strengthen voluntary compliance; statistics were zompiled to determine impact

on revenue of existing and proposed

legislation, and monitoring continued on

the ~progress of other tax-related legislation of interest to IRS.
MANAGING THE SYSTEM

Management initiatives continued in providing opportunity for

equal employment and development of the most qualified people: effective use of buildings and equipment: maintaining a high

standard of integrity and honesty of employees: prevention of

corruption and fraud and protection of employees in their work.

IRS efforts continued in automation technology in processing

tax retums. electronic and retum-free filing, and management

and cost-accounting systems.

INTEGRATED MANAGEMENT

SYSTEMS

STRATEGIC MANAGEMENT SYSTEM

IRS established the Strategic Business Plan (SBP) to provide a

comprehensive, servicewide focus on quality tax administration.

The Strategic Business Plan contains an exhaustive set of longrange objectives and strategies based on planning assumptions

and trends. critical issues, and the IRS Commissioner's priorities.

IRS continued refinements to the Strategic Issues Plan for addressing major issues. Strategic initiatives provide a mechanism

to systematically analyze and make specific recommendations

about implementation of program change proposals. A new area

of concem and five related initiatives pertaining to IRS's commitment to quality service were added to the Strategic Issues

Plan. Several initiatives were completed to strengthen compliance with the tax laws, improve management of information

technology, maintain program efficiency and effectiveness, and

recruit and retain quality employees.

RESEARCH

IRS research efforts emphasize strengthening voluntary compliance, trend identification. and analysis as reflected in the IRS

Strategic Plan. At a conference of academic and private foundation researchers, representatjw~ of various practitioner/advisor

and professional groups and IRS personnel discussed research

papers on the role of tax practitioners.

The IRS prepared a report to Congress on the feasibility of a

rettirn-free system, under which some taxpayer's with simple tax

situations could have their tax liabilities determined by the IRS.

The report stated that such a system is not now feasible. but

suggests new computer systems planned during the next decade

might make implementation of such a system possible.

Several milestones have been reached in establishing longrange Artificial Intelligence (All capabilities in the IRS. Transition

from training to system development activities was successfully

carried out through the establishment of an Al laboratory and

the return of trainees from the first Al training program.

Projects focused on some key operational areas servicewide. including compliance. taxpayer service, and returns and information processing. All are expected to yield substantial benefits in

the quality and productivity of work conducted by the IRS.

The Integrated Management system (iw) Project Office was

established to replace and enhance the current management information system and manual inventory controls by providing

timely, accurate information in a flexible and user-friendly format.

IRS had commissioned an independent firm in 1984 to conduct a feasibility study of an integrated-management system and

cost-accounting system. The current system was shown to be

cumbersome and slow and service center managers were maintaining over 370 manual reports on workload status.

A system was needed to automate these manually kept records. IMS converts current service center systems to a database

management system. making information more available to

users. and eliminating as much manual processing of paper documents as possible for service center, regional and national office managers and analysts.

IMS includes service center employee performance evaluations, release/recall actions, workload scheduling/work planning,

production and inventory control, quality. automated document

control and a cost management system.

The Total Employees Performance System (TEPS) will be tie

first sub-system implemented in ]MS. Under TEPS, the peergroup evaluation system for measured work, in service centers is

replaced by a new system based on fixed performance Standards. Most of the design and analysis work for Phase I of

TEPS was completed in 1987. TEPS is being piloted at Brookhaven Service Center, with servicewide implementation schedtiled in 1988. The remaining sub-systems of IMS will be piloted

at the Philadelphia Service Center beginning in fiscal year 1989.

INFORMATION SYSTEMS DEVELOPMENT

IRS recognized the need to modernize its computer-based tax

administration system and set up the office of the assistant

commissioner (information systems development) to direct the

IRS toward this effort.

This effort is necessary to improve the timeliness and qualit'l

of service to the taxpayer and improve the quality of processing

returns within the IRS.

COMPUTER SERVICES

The Tax Reform Act of 1986 required the revision or addition of many tax forms and brought about many programming

changes for the automated tax processing system. Computer

services tracked the new provisions of the tax law during the

28

MANAGING THE SYSTEM

legislative process to identify the prgcessing changes which

needed to be in place before January 1, 1988.

Computer services was involved in developing the Quality Improvement Information System (QIIS). a data processing system

for sharing quality-related information and tracking quality

improvement projects servicewide. Other computer services

projects focused on improving processing of tax and information

returns and service to customers.

Computer services is developing plans for continuing critical

operations in the event any of the Internal Revenue Service's

processing centers are incapacitated for an extended period.

Such plans would go into effect when fire, flood. tornado. sabotage. or other major catastrophe results in substantial damage

or long-term disruption of services.

The program to replace IRS's existing data communication

processing system and aging computer terminals continued

throughout 1987. These computer terminals support many

functions used to research taxpayer account data, process adjustments to taxpayer accounts and resolve errors in tax return

input Replacing the old equipment improves IRS's capability to

answer taxpayer inquiries regarding returns and refunds.

INTERNAL SECURITY

The IRS commitment of quality and service to taxpayers begins with the assurance to the public that employees are living

up to the highest standards of honesty and integrity and that

employees are protected from efforts to corrupt or threaten

them when carrying out their duties. These tasks lie with the

internal security division and are accomplished through investigations conducted by the division.

Investigative programs conducted by the division include criminal misconduct (such as bribery. embezzlement. disclosure or

unauthorized use of tax information and conflict of interest) and

serious administrative misconduct by IRS employees; attempts

by non-IRS personnel to corrupt or unlawfully interfere with

IRS operations through bribery, threats or assaults; charges against tax practitioners; allegations of impersonation of IRS

personnel, background investigations on IRS applicants and apPointees, and security updates.

The elimination and prevention of corruption and fraud depends upon the cooperation internal security receives from IRS

employees. One such example involved an employee who rePorted a bribery attempt that resulted in the arrests and indictments of two garment business owners, and the accountant of

One ofthe owners. for bribery, conspiracy and aiding and abetting. The investigation disclosed that the two businessmen offered and paid the cooperating employee a total of $13,000 to

eliminate approximately $74.000 in tax liabilities.

In another investigation. a former employee was arrested and

indicted for embezzlement and false personation. The investiga- tion originated when a taxpayer asked about the status of a

cash payment which failed to post on the taxpayer's account

The investigation involved seventeen taxpayers and a total of

$33.383.43, which the former employee had embezzled while

employed with IRS. He continued to contact taxpayers after he

resigned and embezzled additional funds by posing as an IRS

employee.

The division introduced an initiative for conducting background investigations to more timely assess a person's character. reputation and loyalty to the United States. Internal security

centralized the program in a national office component, the centralized background investigations section (CBIS). and it is proving to be a more efficient and effective way to conduct background and security cases.

Employee protection is internal security's highest priority.

Continued emphasis was placed on the employee protection program in terms of the prompt investigation of threats and assaults. and further refinement of the system to alert employees

to potentially dangerous taxpayers (PDT's). The number of taxpayers designated as PDT's increased substantially during 1987.

This may be due, in part, to an increase in the number of incidents reported by employees who are now more alert to taxpayers' threats.

An assault and threat task force was formed as a result of an

independent study. One objective is to produce an assault and

threat handbook to be used by IRS employees as a ready reference for questions related to assaults, threats, and security. Several districts are also being selected as test sites for implementing measures to improve employee safety and security.

INTERNAL AUDITThe internal audit division conducts independent reviews and

aippraisals of all functional activities of the IRS. During 1987,

nternal audit concentrated its efforts in those areas which were

of primary concern to management-the quality of operations

and service to taxpayers.

The Tax Reform Act of 1986, because of its sweeping

changes in the federal tax laws. will have a tremendous impact

on taxpayers. Internal audit in keeping with its mission to provide a service to management, established a tax reform coordinator in every region, initiated six audits of tax reform implementation activities so that management would have the benefit

of internal audit appraisals on an on-going basis.

Intemal audit is a member of the 1988 filing season readiness group and made a number of recommendations to improve

IRS's implementation of the Tax Reform Act of 1986. For example, one internal audit review in the business income tax area

showed that estimated payments for 1987 Forms 1041. U.S.

Fiduciary Income Tax Return. have been processed to incorrect

tax periods or as payments for individual income taxes. and over

40.000 payments did not initially post to accounts. Internal audit recommended. and management agreed that: (1) procedures

29
MANAGING THE SYSTEM

need to be established to process 1987 Forms 1041 payments

upon receipt: (2) computer programs need to be in place to ensure payments post to the proper accounts; and (3) procedures

need to be established to resolve unposted payments. Internal

audit also made many recommenclations to improve the 1987

tax forms, and most of these recommendations have been

adopted by management

Internal audit because of the concern expressed that taxpayers may delay filing their new Forms W-4 and create significant

under-withholding problems for themselves and reduced tax receipts to the government. conducted two surveys of employers

to determine if the concerns were valid. These surveys provided

timely. reliable data for the IRS Commissioner to respond to

congressional concerns. Although the survey results were encouraging. internal audit still recommended that IRS should continue to encourage all taxpayers to promptly submit revised

Forms W-4 to minimize any under-withholding and help prevent

problems related to increased penalty assessments. delinquent

accounts, and delinquent returns.

In 1987, $266.3 million in additional revenue and cost savings were realized from management actions on internal audit

reports. An additional $462.1 million is projected on additional

actions pending implementation.

INTEGRITY PROGRAM

The combined efforts of internal audit and internal security

focus on programs to prevent and detect fraud. Internal audit's

program includes conducting reviews of internal controls and

related transactions susceptible to employee fraud. In one such

review, internal audit reported that IRS had changed its proceclures to monitor access to accounts of employees or their

spouses. The new procedures did not allow reviewers to readily

identify suspect unauthorized access or patterns of misuse. This

control weakness permitted an employee to make multiple accesses to another employee's account and to process more than

40 fraudulent returns/refunds.

Internal security's program consists of tests of high-risk activities where there is potential for corruption that could affect

IRS integrity. One of the probes conducted was a project designed for the purpose of identifying, monitoring and investigating persons who attempt to corrupt IRS employees involved in

returns compliance measurement programs (RCMP) on preidentified illegal operations (i.e. gambling, prostitution). This

project resulted in detecting several bribe offers, referrals to

criminal investigation for tax violations, and large assessments

involving delinquent Forms 940 and 941 taxes.

Internal security continued to make a concerted effort to foster concern about corruption. fraud and waste. and participated

in presentations to new and incumbent employees to raise the

employees' consciousness of the high standards expected of IRS

employees and to provide guidance in the recognition of potential hazards.

STATISTICS OF INCOME (SOI)

IRS contributed to the implementation of the new .~x reform

legislation in many ways, but particularly by preparind tax return statistics for the Department of the Treasury's Office of

Tax Analysis and Congressional Joint Committee on Taxation.

These statistics are critical for determining the impact on revenue of existing and proposed legislation.

IRS issued statistics of income publications covering individual

income tax returns for 1985 and corporate income tax returns

for 1984, a source book showing detailed financial data for cor.

porations for 1984 by industry. IRS also published the quarterly

SOI Bulletin, which presents key data in advance of SOI reports

or in place of SOI reports formerly published. IRS issued the individual income tax model for 1985, which is a microclata magnetic tape file consisting of selected income, deduction and tax

items taken from a random sample of individual income tax returns. This file consists of approximately 100,000 unidentifiable

records representing the 101 million returns filed. The primary

use of the file is to simulate the administrative and revenue efferts of tax law changes.

The SO[ division played a major role in support of IRS's renewed emphasis on providing quality service to its customers.

Specifically. the division provided continuing quality improvement support services, such as instructing. facilitating. and consulting for the quality training program. The division also assisted in several quality improvement projects involving various

IRS functions.

DIRECTOR OF PRACTICE

The director of practice administers and enforces regulations

for individuals who represent taxpayers before the IRS. During

1987, the start-up year mandating continuing professional education for those enrolled to practice before the IRS was concluded. The mandate of continuing education for a segment of

the private sector is unique in the Treasury Department and

was extremely successful in its implementation. Almost 23.000

people participated in the program.

At the end of 1986. a notice of proposed rule-making was

published that would amend the regulations in Treasury Department Circular No. 230. The notice proposed a standard to be

used by tax practitioners concerning advice on positions to be

taken on tax returns and in tax return preparation. Over 500

comments were received last year, and a number of articles on

the proposal were published. The comments were reviewed and

evaluated and a meeting was held with representatives of the

tax practitioner community to discuss alternatives available to

resolve the issues raised. At the end of 1987, the proposal was

being considered for appropriate resolution.

30

MANAGING THE SYSTEM

LEGISLATIVE AFFAIRS

Planning for the implementation of the Tax Reform Act of

1986 was one of the principal activities of the legislative affairs

division during 1987. The division worked closely with the tax

committees in the House and Senate, as well as the Joint Committee, as the tax reform bill moved into its final form. Even as

the President signed the bill into law. the division was developing the Servicewide Implementation Plan. the agency's detailed

planning document of all the actions IRS is undertaking to implement the new tax law. The division was also involved in communicating IRS's tax reform plans by conducting IRS executive

seminars, issuing legislative affairs updates. and heading

congressional outreach efforts.

Monitoring the progress of other tax and related legislation

of interest to IRS is another vital role of the legislative affairs

division. At the close of last year. the division was tracking 29

bills. including the Taxpayer Bill of Rights and the revenue-raisIng provisions being considered by the I 00th Congress.

The division also develops legislative proposals and coordinates with other IRS activities in the drafting of legislation. prepares and monitor's plans to implement newly enacted tax legislation, and develops testimony for IRS officials appearing before

congressional committees.

Legislative affairs coordinated preparations and follow-up activities for 19 congressional hearings, handled 29 final and 13 -

draft General Accounting Office issuances. and received nearly

10,800 congressional telephone inquiries, and over 7,400 written congressional and other requests.

COMMITMENT TO QUALITY SERVICE

vic

IRS expanded its efforts to provide quality products and seres to its customers. The Commissioner's Quality Council. renamed the National Quality Council with the addition of two officials from the National Treasury Employees Union. guided IRS in massive training efforts, the implementation of quality service

initiatives, and the installation of a servicewide quality improvement process.

The IRS Strategic Issues Plan was expanded to include a new

area of concern, "Commitment to Quality Service." Five new initiatives approved by the Commissioner and his quality council

are:

Ensure that functional goals and program effectiveness measures reflect the commitment to quality service.

Develop a greater concern for the customer.

Identify and remove barriers to quality and foster a climate of

innovation and creativity.

Instill a commitment to quality.

Adapt management information systems to track progress in

meeting the commitment to quality service.

GENERAL ACCOUNTING OFFICE/IRS JOINT

MANAGEMENT REVIEW

Recognizing the need to continue to improve the quality of

the total system of management within IRS, the Commissioner

invited the General Accounting Office's general government division to join with the agency in conducting a review of the structure and processes by which IRS is managed.

The Commissioner used preliminary data from the management review to help him in responding to several challenges. including the recent IRS organizational restructure. It is anticipated that the resulting final reports of this management review

will reflect both the strengths and the weaknesses of IRS's

managerial structure and processes and can be used as an aid in

formulating IRS plans for continued improvement

EQUAL EMPLOYMENT OPPORTUNITY

IRS made significant advances in its Equal Employment Opportunity (EEO) Program. This progress was partially reflected

in the increase in the total number of women and minorities

employed full-time by IRS.

A computer-based personnel management information system

was used to generate affirmative action plan data for all planning and reporting units and to consolidate regional and servicewide data. Projects were also identified for future computerization.

IRS helped the Treasury Department design a new EEO investigator training course. Because of this'course. IRS employees

serving as EEO investigators are able to receive timely and relevant training, and the overall quality of investigators has improved.

A conference of all regional EEO officers was held to discuss

the IRS implementation of the new five-year affirmative action

plan process required by the Equal Employment Opportunity

Commission.

IRS continued its program with Historically Black Colleges

and Universities (HBCUs) under Executive Order 12320. As a

result, instructors in accounting and income tax have been provided at no cost to the host institutions. The role of instructors

has included recruitment at the HBCUs.

A special project was initiated to determine how approximately 200 IRS braille users could obtain equipment and materials in a more timely and economical manner.

In addition to traditional special emphasis programs, IRS established two new initiatives-a servicewide Asian Pacific Employment Program and a Native American Employment Program. This action represents one of the measures taken to

further enhance employment opportunities for Asian Pacific and

Native American job applicants and employees.

31
I CHIEF COUNSEL SECTION

he Office of Chief Counsel is the

legal counsel for the Commissioner of

Internal Revenue. Chief Counsel represents the Commissioner in cases filed

with the U.S. Tax Court, advises the Department of Justice of the basis for the

IRS position in other tax litigation and

provides legal advice to IRS personnel.

Chief Counsel prepares revenue rulings,

revenue procedures, and regulations to

provide guidance to the IRS and the

public on new and proposed legislative

changes.

33
CHIEFCOUNSEL

TAX REFORM LEGISLATION

Chief Counsel was actively involved throughout the development of the Tax Reform Act of 1986 legislation. The principal

representatives in the legislative process were the legislation and

regulations division, the employee plans and exempt organizations division. and the international organization. However. all

components in the Office of Chief Counsel were involved in the

tax reform legislative process. Attorneys attended hearings and

mark-up sessions, participated in drafting sessions. and analyzed

and commented on many drafts of statutory language and committee reports. Many potential technical and administrative

problems in the law were identified because of this involvement

and corrected before enactment of the Act

Sections of

the

1986 Act for which early guidance would be needed were also

identified.

Another effort to provide prompt guidance under the 1986

Act was to close old regulations projects that were no longer

needed. In late 1986, Chief Counsel closed 133 old regulations

projects to make way for new ones. Some projects are closed to

permit more efficient use of resources: however, the closing of

a project does not necessarily mean that guidance will not be

furnished in the area. Many issues in the closed projects will be

included in projects under the 1986 Act- In other cases. the rulings divisions can provide guidance through revenue rulings.

revenue procedures. or the private letter ruling process.

To implement prior legislation, guidance to the public

was

provided primarily through comprehensive regulations. Various

vehicles are being used in implementing the Tax Reform Act of

1986, including notices, revenue rulings. regulations, announcements and news releases. Chief Counsel adopted a policy of addressing essential issues first and less important issues later in

order to provide prompt guidance under the Act.

Chief Counsel expanded procedures for issuing private letter

rulings under Internal Revenue Code sections for which,.regulations have not been adopted. Historically. private letter.rulings

are issued in the absence of regulations only if the arisWer

seems clear or reasonably certain. Revenue Procedure 7-

1987-2 I.R.B. 15, changed this procedure by listing Code sections affected by the Tax Reform Act for which IRS will do its

best to issue rulings. even when the answer does not seem reasonably certain. Revenue Procedure 87-7 also provided that

when the IRS has closed (or does not intend to open) a regulation project on a new or amended Code section, any ruling request under that Code section will be considered unless the issue is covered by a specific no-rule provision.

A reorganization of the rulings divisions balanced staffing and

workload and further enhanced managerial effectiveness by giving first-line managers total program responsibility (rulings and

publications) for tax ar-eas under their jurisdiction and promoted

the professional development of attorneys by expanding thejurisdictional areas of the Code handled by each branch.

An automated case tracking and management system for the

revenue ruling program was a significant development. The system maintains statistical information concerning every step in

the processing of a revenue ruling from the time a project is

opened until it is closed.

EMPLOYEE PLANS AND EXEMPT

ORGANIZATIONS DIVISION,

INTERPRETATIVE DIVISION, AND

LEGISLATION AND REGULATIONS

DIVISION

CORPORATION AND INDIVIDUAL TAX

'DIVISIONS

The corporation and individual tax divisions issue letter rulings and technical advice memoranda that interpret and apply

the tax laws to specific sets of facts.. The rulings divisions also

respond to general information requests and are responsible for

the development of revenue rulings and revenue procedures

that are published in the Internal Revenue Bulletin,

The divisions published 17 revenue rulings and procedures on

various aspects of the Tax Reform Act of 1986. and have 30

additional items pending publication.

These divisions were actively involved in implementing the

Tax Reform Act by assisting in formulation of the legislation,

drafting and legal review of proposed regulations under the Act

and legal review of proposed revenue rulings and IRS announcements implementing and clarifying new tax law provisions. Attorneys from these divisions also worked with IRS officials to

resolve many statutory and administrative problems.

A task force from the employee plans and exempt organizations division and the Department of Labor coordinated efforts

of the two agencies in the administration of -mirror image..

provisions of the Internal Revenue Code and Title I of the Employee Retirement Security Act of 1974 (ERISA) relating to prohibited transactions involving employee plans. The task force

sought to clarify the responsibilities and policies of each agency

and to develop ajoint administrative strategy.

34

CHIEF COUNSEL

INTERNATIONAL

A primary objective of the international office was to improve

coordination last year between the office's regulatory guidance

function. (issuance of regulations, rulings and notices) and the

lit.gation function for issues involving international transactions.

International special trial attorneys were selected as liaisons in

each of the seven regions. These attorneys specialize in internatonal matters and advise the regional and district counsel and

international examiners in the region.

The office worked with the assistant commissioner international to select issues which should receive close scrutiny at the

examination level and to develop cases appropriate for litigation.

The office participated in numerous continuing professional education seminars for international examiners to ensure a consistent and thorough application of international provisions of the

Internal Revenue Code.

The office participated in several public seminars, and published more than forty-five revenue rulings, revenue procedures

or notices as taxpayer guidance. Thirty-six new projects were initiated under the Tax Reform Act of 1986. Proposed regulations

concerning the foreign tax credit and interest allocation were

published.

CRIMINAL TAX

DISCLOSURE LITIGATION

The disclosure litigation division assisted with the Government's defense in civil litigation using the disclosure statutes as

a basis to challenge several key IRS programs. In the area of

abusive tax shelters. an appellate court recently rejected a tax

shelter promoter's disclosure challenge to prefiling notification

letters sent to investors concerning the tax consequences of

their transactions with the tax shelter.

In the lockbox program. under contract with Treasury and

IRS. federal depositary bank employees assist in the processing

of estimated federal tax payments by opening estimated tax return vouchers, recording the payments, and depositing payments

into Government accounts before forwarding the vouchers to

the IRS service centers for further processing and posting. The

system allows quicker access to the funds and reduces the floattime at a considerable increase in interest earned on Government deposits. The legality of the bank employees' access to tax

information for processing purposes was upheld in a United

States District Court and is currently on appeal.

Under the Freedom of Information Act, in a victory for taxpayer privacy in particular and the tax system in general. the

Supreme Court recently held that IRS is not required to release

otherwise confidential tax data to members of the public upon

the mere removal of identifying details.

The criminal tax function performs a wide range of legal

tasks concerning matters investigated by the criminal investigation division special agents. Attorneys provide advice and assistance to the agents in the gathering of evidence and prosecution

potential of cases during the course of the investigation. and

formally review cases for legal sufficiency before referral by IRS

to the Department of Justice for prosecution.

Of particular noteworthiness during the last year were:

Criminal Trial Attorney Program: The Attorney General authorized eight docket attorneys in district counsel offices nationwide to prosecute criminal tax cases. This program benefits IRS

by providing tax-knowledgeable attorneys in field offices who

can try criminal tax cases.

Money Laundering Legislation: Counsel worked closely with

criminal investigation and the Commissioner's staff in developing

recently enacted legislation in the money laundering area. It can

be expected that this legislation will have a significant impact on

IRS operations in future years.

Successful prosecutions included several cases involving abusive tax shelter promoters.

GENERAL LITIGATION

The general litigation and collection functions reached an

agreement with the Office of the Secretary of State of Connecticut to implement a system of electronic filing of notices of federal tax lien by the IRS and the electronic retrieval of such data

by the state. This system makes the filing and retrieval of such

information more cost efficient than the current manual practice, provides more timely and up-to-date information. and will

be more error free than manual filing.

IRS district counsel attorneys directly represent the IRS's interests in bankruptcy rather than through another attorney in

the U.S. Attorneys' Office in 37 offices. District counsel. with its

broad knowledge of bankruptcy law and tax law. is well

equipped to be of assistance and take immediate action. This

program has assisted in avoiding the accrual of additional liabiliCourt Non~court Total

RECEIPT AND Pending Oct. 1. 1986 20,685 1,556 Z2241

DISPOSAL OF Received during year 26A27 6,787 33.214

GENERAL LITIGATION -

CASES Disposed of 24.449 6AS7 30,906

Pending Sept. 30. 1987 22,663 1,886 24.549

35
CHIEF COUNSEL

ties in chapter I I cases. The arrangement provides a fast and

direct method of resolving disputes through negotiations with

the outside bar.

The general litigation division worked with its tax litigation

counterpart, the pension and actuarial staff of examination, and

the Pension Benefit Guaranty Corporation (PBGC). in connection

with collection matter's relating to under-funded pension plans

of bankrupt employers in large bankruptcies for excise taxes

due because of employer under-funding of their pension plans.

This helps PBGC in obtaining a larger settlement of its claim for

the omitted pension funds. and in obtaining monies in satisfaction of taxes.

TAX LITIGATION

Chief Counsel devoted substantial resources to handling over

80.000 docketed cases in the United States Tax Court The goal

is to resolve these cases on a fair and reasonable basis as expeditiously as possible. New case tracking procedures were developed for early identification of cases which will be calenclared

for trial under the Tax Court's new first-in-first-out calenclaring

process.

The tax litigation division created a specialized staff to provide comprehensive litigation representation to the assistant

commissioner, employee plans and exempt organizations, in the

employee plan area. Litigation responsibility for Tax Court cleclaratoryjudgment cases was centralized in the division. The division worked with the field and national office functions to develop sWtable cases for litigation.

During 1987, the number of docketed tax shelter cases increased tojust over 58 percent of the Tax Court's inventory.

District Courts Claims Court Total

Amount Amount Amount Amount

Number in (3) in (4) Number Amount in in (4) Number Amount in in (4)

Status of~ dispute suits of cases (3) dispute suits of cases (3) dispute suits

TAX LITIGATION- Pending Oct 1. 1986 2.958 $686394 955 $1236.915 3.913 $1.923309

REFUND SUITS (1) Received (6) 902 291.781 181 Z37.639 1,085 529.420

(in thousands of

dollars)

Disposed (2)

Amount In suits (4)

Amount not reftinded

(5)

Percent not refunded

42204 80.996

66 75

Pending Sept 30, 1987 3.171 905,181 1,012 1.41OA37 4.185 2.315,618

689 72.994

$44,608

38.792

87

Approximately three-fourths of docketed tax shelter cases are

being handled as part of a litigation project Each project is

managed by a single attorney or team of attorneys. who, together with a key appeals officer, establishes a unlfofi~ settlement position. The project is also responsible for developing the

litigation position for all investors within the particular project

This approach enhances consistent treatment for investors and

more efficient settlement or litigation of cases.

The IRS announced the major settlement initiatives to address

the backlog of nonclocketed tax shelter cases pending in examination. The initiatives authorized examination to apply settAements (determined by Counsel or Appeals) in certain tax shelter

cases. The purpose of the initiatives is to close tax shelter cases

with finality on an agreed basis at the earliest administrative

level possible, thereby precluding the necessity of litigation.

The tax litigation division took the lead in devising procedures

to implement the partnership procedures enacted by the Tax

Equity and Fiscal Responsibility Act (TEFRA). Personnel met

with the Tax Court and representatives of the private tax bar to

resolve procedural issues, drafted proposed settlement rules for

the Tax Court, initiated technical correction legislation, and argued several major motions before the Tax Court which have

resulted in a number of key opinions in this area. The division

also developed a computerized tracking system for TEFRA partnership cases.

Approximately thirty special trial attorneys are assigned the

most significant trial work in the United States Tax Court

These well-experienced trial attorneys are given extra resources

to develop and try their cases. This year a number of these

cases came to trial, and the Government received several notable opinions, including some in the abusive tax shelter area and

in the petroleum industry.

124 64.117 813 137.111

$63.519 $10B.127

(I)Cases in courts of appeals and the Supreme Court are included under the (4)Amount of taxw. penalties and assessed interest sought as a refund.

co umns representing the court of origin. (5)That portion of the amount sought as a refund. which was not refunded to

(2Nsposials include ~stried. settled and dismissed the taxpayer.

(3)Amount in dispute includes claims for refund of taxes, penalties, assessed (6)Received statistics include adjustments to prior years' receipts.

interest and counterclaim amounts.

CHIEF COUNSEL

INDUSTRY SPECIALIZATION

PROGRAM

During the year. certain designated field and National Office

attorneys advised revenue agents on development and evalualion of evidence and on technical positions for important tax issues found prevalent in major industries. Certain cases were

designated for litigation of key issues.

ADMINISTRATIVE APPEALS

The appeals division is responsible for resolving tax controversies. without litigation, on a basis that is fair to both the

Government and the taxpayer, and in a way that enhances voluntary compliance and public confidence in the tax system. Appeals officers. located in major cities, meet with taxpayers and

their representatives and are usually successful in resolving the

disputed issues.

To encourage taxpayers to resolve their disputes administralively before petitioning the Tax Court. IRS simplified the requirement for requesting appeals consideration of issues raised

in examinations conducted at a taxpayer's or a representative's

place of business. Where the amount in dispute from such a

field examination exceeds $2,500 but does not exceed $10.000

for any taxable-period. the taxpayer needs to submit only a

brief written statement of disputed issues with the reason for

disagreement rather than a formal, legal-type of protest With

this change, the requirements for requesting appeals consideration in any case are either similar to or less than the requirements to petition the Tax Court

A large number of the cases the appeals division resolves are

tax shelters. The settlement provisions in a tax shelter promotion are offered to all investors in that shelter. Under IRS's Tax

Shelter Initiative, announced in April 1987, appeals furnishes information on its shelter settlements to examination so that

investor cases there may be resolved on the same basis as in

appeals.

Appeals also has responsibility for providing specialized valuation assistance throughout IRS and to other government agencies on tax-related fair market value determinations for financial

assets, real estate, art objects, and intangible property. During

the year, the art advisory panel of outside experts considered

1.500 items with claimed values of $97 million; the panel recommended $17 million of changes to the value of these items.

Appeals has continued working with examination on developMerit of the Automated Examination System. This system, when

implemented, will enable many processes to be done electroniCally, such as tax, interest, and penalty computations. The speed

and accuracy of appeals' service to the taxpayer should increase.

GENERAL LEGAL SERVICES

The general legal services division (GLS) provides legal services to the IRS with respect to wide-ranging miscellaneous legal matters.

All legal work for the expanding refund offset program was

provided by GLS. Under this program. amounts that taxpayers

owe other governmental agencies are collected by offsetting

those amounts against tax refunds owed the taxpayer. Last year,

IRS collected considerable sums for several agencies participating in the refund offset program; continued the delinquent child

support program on behalf of the fifty states, and defended the

refund offset program in several lawsuits. GLS also provided advice to the criminal investigation division to implement the forfeiture proceedings under the Anb-Drug Abuse Act of 1986 and

with respect to actual forfeitures under the program. and

worked with the legislation and regulations division to draft applicable regulations.

The division provided training to IRS and Treasury personnel

on government contracting principles; assisted the IRS in drafting the mission. organization. and procedures for several implementation groups; and continued to defend actions when IRS

employees were sued in connection with their tax enforcement

activities.

OPERATIONS DIVISION

The first Computer Information Center in the IRS was established to provide nationwide responsibility for all computer use

support for Chief Counsel. A key automation project is the

Counsel Automated Systems Environment which will enable

Counsel to reduce the backlog of tax court cases and provide

faster service to taxpayers (e.g. better rulings) without reducing

quality.

Field testing was started on a pilot laser disc research system

featuring a new CD Rom laser disc technology. as a possible

fixed-cost alternative to present legal research systems. The

project will test access to the laser disc system via a local area

network.

Due to the increasing number of paralegals in Chief Counsel,

an in-depth training program was developed for new field paralegals. The program focuses on criminal tax. general litigation.

and tax litigation, besides covering general paralegal skills such

as legal research and writing. ethics and disclosure. and statutes

of limitation.

36 1

37
CHIEFCOUNSEL

Pending Pending

Region Oct 1. 1986 Received- Disposed Sept 30. 1987

REGIONAL OFFICES North Atlantic 15.936 11.357 10.143 17,150

CASELOAD REPORT Mid-Atlantic 14.440 8,806 8,999 14247 TRIAL COURT ALL CASES

Southeast 11.759 9,783 10286 11256 CASE RECORD

Central 9.925 8.42.2 7.244 11,103 1

(Opinions renderedMidwest 11208 8.403 7.893 11.718 refund litigation)

Southwest 16.138 13.629 12.470 17297

Western 45.990 23,103 24,122 44,971

Total regions 125396 83.503 81.157 127,742

National offim 2.322 1.160 280 3.202

Grand total 127.718 84.663 81,437 130.944

'Rece

'

ived statistics am net numbers. i.e.. actual number of cases received plus or minus transfers and adjustments to prior

years receipts.

Taxpayers Field

Total Requests Requests

Administrative provisions 163 145 18

Changes in accounting methods 4,135 4,135

TECHNICAL ADVICE (CLOSINGS)

REQUESTS FOR Total 22.502 22.165 337

TAX RULINGS AND

Estate and gift taxes 488 415 73

Employment and self-employment taxes 977 959 is

Earnings and profits and determinations 1 A69 I A69

Changes in accounting periods I0.7Z5 10.7Z5

Excise taxes 203 166 37

Indwidual income tax matters 2238 2204 34

Corporation tax matters 21104 1,947 157

Type Number

REVENUE RULINGS Administrative

AND REVENUE Employment taxes

PROCEDURES PUBLISHED

Estate and gift taxes

so

2

Excise taxes 7

Exempt organizations

Income taxes 128

Employee plans

Tax conventions

7

6

Total 202

38

Summary & Published,

small tax memorandum

case bench & regular

Prevailing party opinions bench opinions Total

(by decision line) 1986 1987 1986 1987 _1986 1987

Decided in favor Number 354 240 351 285 705 525

Decided-Rule 155 Number 268 204 396 461 664 665

of the taxpayer Percent 4.5 4.6 3.5 5.5 4.0 5.2

Decided in favor Number 30 Z2 31 so 61 72

of the government Percent 53.4 50.3 39.9 31.6 45.7 38.1

Miscellaneous Number

Percent 40A 42.8 45.0 51.1 43.0 482

102 106 113 117

Percent 1.7 23 11.6 11.8 7.3 8.5

Total opinions 663 477 880 902 1.543 1379

All Tax Court Cases Small Tax Cases

Number Taxes and penalties Number Taxes and penalties

of In Deter- of In Detercases (1) dispute mined cases dispute mined

UNITED STATES Pending Oct 1, 1986 89.686 $17342,807 14.512 $50.763

TAX COURT CASES (2)

(in thousands Received 43,496 7-934.258 14230 87.361

of dollars) Disposed 45366 3,003.629 $1.019.757 14.954 47327 $Z2.005

Pending Sept. 30. 1987 87.816 21.873A36 13.798 90.797

(1)Excludes income. profits. estate and gift and dqclaratory judgment cases.

(2)Reflects Office of Chief Counsel statistics as opposed to U.S. Tax Court statistics.

Action

Decided in favor

of the government

Decided in favor

of the taxpayer

CHIEF COUNSEL

Claims District

Court Court Total

1986 1987 1986 1987 1986 1987

Number 46 69 282 325 328 394

Percent 76.7 852 71.8 80.4 72.4 81.2

Number I 1 9 90 68 101 77

Percent 183 11.1 22.9 16.8 22.3 15.9

Decided partially for Number 3 3 21 11 24 14

taxpayer and

partially

forthe government

Total opinions

Percent 5~0 3.7 5.3 2.7 5-3 2.9

60 81 393 404 453 485 .

UNITED STATES TAX

COURT-OPINIONS

39
CHIEFCOUNSEL

Prosecution cases received

from criminal investigation

RECEIPT AND Tocalopened

DISPOSAL OF

CRIMINAL TAX

MATTERS

Total closed

counsel declined

.

. 3.526

3.394

41

Department of Justice declined 145

U.S. attorney declined 340

Prosaecutions completed 2.868

Opinions

Pending Oct. 1, 1986

Total requested

Total rendered

Pending Sept. 30, 1987

APPELLATE COURT

CASE RECORD (1)

Action

Decided in favor

of the government

Decided in favor

of the taxpayer

taxpayer and partially

for ~he government

Courts of

Appeals Supreme Court

1986 1987 1986 1987

Number 428 332 3 5

Percent 67.5 853 75.0 83.3

Number

Percent

Decided partially for Number

Total opinions

Percent

47 45

9.6 11.6 25.0 16.7

14 12

2.9 3.1

489 389 4 6

(1) Refund suits and tax court cases,

TAX LITIGATION WORKLOAD

(rax court cases and cases On appeal)

* Pending

0 Cl.,ngs

0 R.e.pu'

0

22

43

41

24

iga? 1 9a3 1984 1985 1986 1967

'Rexived statistics are nen nurnters. i.e., eaual upoper of cases rKereo plus

or minus transfers and adju-ts M prior yeam receipos.

STATISTICAL TABLES

STATISTICAL TABLES

Table I.-Internal revenue collections by sources and by

internal revenue regions and districts. states and other areas

Table 2-Internal revenue collections by sources

Table 3-Internal revenue collections by principal sources

Table 4.-Amount of internal revenue refunds including interest

Table 5.-Number of internal revenue refunds issued

Table 6-Number of returns filed

Table. 7.-Returns filed, examination coverage and results

(1987)

Table 7A.-Information returns and other correction programs

(1987)

Table 8.-Returns filed. examination coverage and results

(1986)

Table 8A.-Information returns and other correction programs

(1986)

Table 9-Additional tax and penalties recommended after

examination by class of tax and by internal revenue regions.

districts and other areas

Table IO.-Number of returns examined by class of tax and by

internal revenue regions. districts and other areas

Table I I.-Returns examined by examination divisions

Table 12-Examinations resulting in refunds (excluding claims

for refunds)

Table 13.-Results of delinquent collection activity

Table 14.-Civil penalties assessed and abated

Table 15-Appeals division workload not before the tax court

(nondocketed)

Table 16-Appeals division workload petitioned to the tax

court (docketed)

Table I 7-Requests for EP/EO tax rulings and technical advice

(closings)

Table 1B.-Determination letters issued on ERISA employee

benefit plans

Table 19-Number of exempt organizations returns examined

by type

Table 20-Number of active entities on exempt organizations

master file

Table 21.-Disposal of exempt organizations applications

Table 22-Internal revenue collections. costs. employees and

U.S. population

Table 23-Costs incurred by the Internal Revenue Service by

activity

Table 24.-Costs incurred by the Internal Revenue Service by

office

Table 25-Personnel summary

Table 26.-Chief Counsel cases received

Table 27-Chief Counsel receipts and disposal of cases

40 1 41
STATISTICAL TABLES

Table I.-Internal revenue collections by sources and by internal revenue regions. districts, states

and other areas

(in thousands of dollars)

IrtIo~,tu'l~,,It em*"m w"

Tll1l,= COM~ dthw ,IINId "SECA MA Rllk~ Unw= EstaiI rAft It. IZ 17.

V

2 TIIII 3.

1

3

11) (2) (3) (4) (5) 16) (7) (81 (9) A.

ww SUIN, -1 ............... 885.290,= IGZMM 744Q52.M 156944,748

pgIll, .... 158. IlLM 20.GX512 n1743,4318

U.M'IN 575124.671 4.151$M L"Z= 7.164.611 WZWO 33.310.11111)

Al slt; ... .... B. 7.751

I"'M7,263 228. 18 IMM 1.46D,= 124= z3a 561

=.

"::::

7815% 7,93,11.972 IM T74

6

on.095 7,54M Q.w 31253 975 455'.094 Ma in 248317 2.W.3n 610173 I.M.00, 4 4(Xi 19.791 Maw in 0,416

........ 27.969097 1V8rRI 24,054.1n 5Z14.327 l8.5,)4NI w.1129 Waso Wim 5.97o 441,906

amok"

:::::::::

16.971.830 IjKlm 4,M.8% lo.W,ml w= 107,M 126.505 Iso7I 131.713 5. wioI,) I 1.16a4lill ID.IGBM I.M.383 8.M.M 3-139 81.1w nz1I Ilia 27114% 291.72D III= T.TM.374 3D6.755 BDI.733 5.484 9Ao2 6,876 WD v.= ISII l: 11 WWI 2~715.M 182M621 3.790AB 14407,771 1522) . 406 m.851 4,147 w.o92

F~

60.123.W 10=,215 47.M.M7 Ban N? 3li785.5(X3 15,118 281034 727,803 %,797 921,691

..... 31.M8 Xi.16l 3,165.012

P~ 916.315 2M 14 12 Z1.568 19.766 959 Wall) . . ~ . R~ 1. 1 .."Alo S31,062 3,151.064 615Q2 2 478,fn ,m, 28345 la.m 674 MAW

"-ftft F!.!1!)7I ....... ........ 134,2111,317 I5,7n.ln 114,1110,116 21,MM7 W,051,093 I.M,M wII6 Wol.SI3 lam 411"Zal

2B.m 2,675.072 24,Mt,~ 3.931.34) MOD03B 83,8811 n5n lo.114 833366 4t,Mt?,ZI 4.W.929 N.M.9 7.118.0,11 Mnaeo Q.865 18,856 M9,064 m.iti IM9,379 N 7",424 3.113.611 M"SII 4.793,116 18231,815 478.666 MI.316 MOM 16.61o 5`aom

P~

p. 1'. 13.352W 1=63 11451.651 lW95 am.5n 26,748 174 4M 91,2119

1w m3ol

......I 1.977,M7 15S71.498 1160..2 11.57I.lM 415,101 124MI 175,211 16" 1.0.In ':'2.

543M 1,516412 3.M.941 5D9 666 3,378

M 45 Q.m 111,51t Im

a636

.......... 1191477.1111 IZ5I9.690 N3002 MMA71 n.2tt"m 502.133 MM2 1,108.1311 111251 6544 189:572,213 2.9Ioln

":

l..972 3M.W1 11,9!11w 2M 137,76 153.652 19.590 lx7.817

ii,~:472

ZZ

59)

m mm

7 IM1,331 I.W."' 3.1 62,M6 6im 4.W6 24" 5,.9,91, 1.239,M 4 456aal all 52,668 47.213 l.oI3 163M Rt_a,,JI,d* S.

G~

lot 5M5 764.W7 t4,438,863 7:0n.7217 124) 9I.M 2B4.519 31.790 366.221 114,Ia, c~)19

4M,083 2,579.635 13.917,0502 NI20

.:I 4W

Jalk-..

902:940 M711 Im.002 IM 2,1355.11P

jaa-dia

3:71':110 406 3,111 7511.311 2.310AM &8117 31.107 24AI 247 176,45,

SNM tIlkm)

.

.2.

1

.:' 17~~m 4.106.358 12.597,052 `8`1.516 79M M.423 5599 667,153

.... 4.680,M M.Ni 3161" R6.039 zwo.m 3.342 41,111 25.093 2,418 M2,M4 NL*.lk =r-I QMM l.MrCat IO.Ml.n7 1"os o52 8.1911401 2.539 21.735 90.004 6105 43D M3 oft- iL-) ... ... 11,197096 471,182 7,479.234 1,7110,539 5587.926 3.260 107.5D9 IS m 6,481 I5QM7

ja;~ j.ja 111411,174 1.11,M0 11=452 14,095,570 7&mRI KOB 802.315 5MGM 73,512 4=01

c~

16602,w 2,689,076 13431~04 ZMA57 loM4602 235 MMD M.5 8A29 w.5116

1

M,499,666 2Q7,790 19.717.2DG zam c! 16.613-ID6 18,730 250,1368 119498

M 1,189

-- nN64. 4,1117.178 X095166

4 453MI 293144M 62,6Z) 265,106 153.547

18JR77

8 oft 17,798M

8:W7 800m

I.W997 15.M.518 2.517.4611 l3nl.~ lo.3M M291 a."

"vw1I

465.550 775.2n a2311.9711 1,460.963 4,720.6n

4 7W 52aM 65.0911

'412 1516.9,12

.319 384M7

lw-.

2.895.M 155IM 2.-m 575,451i I.W,287 vi 4726 25,105 In

1241:951 24,:1 ITN"I IOUL557 at 191169.m WWII` 1,2114.182 950.1,36 1151,321

8119 711.1106 1,11211o

M7 anin

3401 776alo 1.869 8.163 6,W7v Q.,

a7w= 6MMW l9l 7.067,Qi M.424.101 M.576 In= 348ADD MA95 i.wm

..

.....

I'M m.801 M_787 IM443o 1w.'M 8.098 39,819 ~1.112 1.147 in.031

m-I

204m Was 1.173~ M4.1m 811375 46 7,700

M 25 W003

........ I'Mm 2N.3M 1.210,M WWI MaDo ND am lom

n 57=

q

154nl.311 1,91 .613 11.1329,5M 2,113.671 9.612.1% 7414 93432 ml 383M

s'.

21,175.% 191M,

M

4.516433 WON 3,165.9K 4711,121 vol 3082 I'M 13tMl 175 3423,6S2 16.855.750 2.BMII4 13 837.M M.492 133.189 155.~ 14.686 Man a, Pw ..... ji~) M.331.832 ZIOO.Ml 17.27112M 2.459.321) 14,2118.161 Italia 83.1. 6638 %am Sltlt 11) ~I ..... 1.117M8 1.371111 1,131.111 1.441.159 5.-on 11.990 85.0119 17.- 2.- la~ano

ll2 7.6DU" 81,01IM MUZ465 61== 3l 4WuM JI&M 4Z396 5==

271 208,171, z=.658 S54,436 I.M.727 ml .31131 Zim n7 Maot,

4W.747 616m lo,16,090 Me.m 74371.93D no Z233 (56.80) 114.433 7.004 297,184

11121 XW Gn,721 MM 5.54)4 7M

m 58,305

.190.1 ZMAM4 4U.MD 4W.679 15243416 31.1. 1611.751 M.M 13.821 1.749,824

q f~IlJo) .......

=Cj;

"N9,57' 851.675 11.759.W zG34.806 amju 31.968 63,12D 65A99

M m.w

IAII.~ 12.342.0 2.811a,12 9.411.912 12M 93.M 104,219 6516 1.861.818 M26al 905,618 6,M 421 1.472.7W 411 Q,117 1.5.018 5.m am=

3,159'WM 17

92 7,27t.106 i.smOCT 5.23o."EK) 5n 5707 Km 4J39 lum

N-

W 2.906.191 6:6.741 2.2n.102,

..........

2.099 Z326() 16200.

IM273

........ 617M, 566.~ 6.152.904 1.1556111 42439,545 28i'm 15.761 a(Illo 1.136 208.18o tatntll,l, FillgilI, ................... 132.4V IN 13JI7,515 113MIUM x~ 34.631m 335M TMM 1.245.11,115 46,09 3-184An 1~14.Zal 65351, 11421.W6 W7.W "Iffi'm - M 4J61 ~7 z 929 261231 I.M.974 MaW 1W.IIII7 14-W 16.950 13.43(l 95 56.199 q 2al n"17M 2.1n~ WADS i.w.mi (12) 17,171 211.753 2,587 15,W 21491),185 Z105.467 IllaSaola 5.5n.Im 13.274,47 469 m.m -.1114 &w ~3. I= 466,955 2,934,973 947.W I.NZM to 24,~ Italia l.M 5,W

.41.7. 5.wzana 16:109 6.7118DI aml.548 26) MOES mm 13.= 811~ 7~16(5. Wl. 6,0872. 1.M376 4MI57 I

s.-

a I.Ma 8.613 549~ u, M4,10K,

=617 51111.787 8.WM7 3,093,433 5.794.946

S.F- 1571 68.437 w.w I'm 2BDA51 a54o.. '.9"zM6 "..m =18 54 12,394.M 31)4,137 5D,W 2Z2,763 6534 1.379.232

IMN5 1,042.032 13,616AM 3.502,407 IGOID740 123o lo?45o 138.899 3,148 222.01

. .........

~O

(w-vw) 13.710,954 I.ON 825 12,M7,074 2,m.92I 9,494,637 1,2611 94245 89A91 4.Ml 2413M

. ..

.....

.....

&mw xMN, 4.4UM 100`96~1 3.47ZM N~m am 1111711 142,111 r&na Ptleetc, R. .................... 1,430.446 W7,3R 1,134213 74,239 IMIM (1) 28.45D 540 17 Immi oft ......................... szEAm 2=~ 3M.393 M.744 2.44"m 21m 19,612 19241 2.1% 24MI ulicibloWINI:

F.*A.61.. .......... 2.M.974 ~9.611 1296.674- 1257,764 G3.7n (24.10)

a- 2,10,6157 FICA 636-W Qw 595,674 595,674 -

.-

,

W

(9) o-,F-W 1,iIVY

P-di"I'll 33.179 M.179 13.179 mm. 63~ Q

n" Ca,w ... 2=W (no.op (Mo., 61) w,oal) 1 546,1110 170A% ZM2.OM

U) C~io- 101-5.370 10 Ml.M 86.683231 22.072.M M.696.= W7.676 606.5M 1.014,797

M 655 2,MM b)Fk,,I1I 359 2.6l 31,M.13 IMMOOD 19.856,518 484.4W 171,M Oil WIN 1,033',,11

......

43M

W: 97.9ti 8.023.M ~334 M7 115011.796 N.M.174 MW 514,172 '06.568 26.31 1.707,008 Id 97 IBM$ 8I.M.465 16MM 64553,592 1116461 M.M ~.795 112.4~ 1.36flm (a) Ow Q.102,195 5.121im 33.1492DD 5M.859 27.607,807 law W5611 2511M I'SNAR2 11 =-::: ~ , 4:1, 1 1,64,12511 35M5a6 6,7511,062 V~~Nl 5D5,413 ~~n() M12M 2120 M 170 (9) . .. .

.60.519 4,124 T64 Q.165.241 10.416,016 M.497259 4,326 205.640 443,947 27N2 3.9DaM

Table I.-Continued

(in thousands of dollars)

total,

U,ftd a-. -1 ...............

~Alo,,ok Regio, .................

Abwy ...... (SOWI~).

Bmok*n .........

BOft& (d)~).

MI'll..........IS" Id)

Pl-,I,ttl .........(~ Ip-el P......... (~w..) .

It"5 .................

BA. ..........th"ta,IJ&D C.)

PhWtV. ..... :IS'. IliI

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

(G giall

Na*~ CT-) ..... ~CrI_ fl-_j

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

0- ilpn,

himapobs

I. :: :::: . swt)~) -

0.. ......

St. LAMS .... ...

61 P.W

Ab~-

...II ....(S. to bllo~) .....

Cl~ I=7,9'.i

D-~: ~:: ~::~ (CIIlI-).

is. igi ~j

P`-

W- Flqi ....... ...... .....

..........(0,W)

sll~"I`arlti,. 01 ~J.

S-~ ..........is.W

S~

W-a.wi ..............

P-R. __ ..... ....

Coal, ............ ............

CiIll,m- lo,

I-- Nq

~- ",,,on

E_

.d:

0.0 .................

113,876

2.~

90060 M 921

197009

MMI0

I.M.m

3686,17

213.515 3M

4~ 122 3 7

I.S7

M7

2.339,M

IN 57

432

18.726

112171

MA19

1.716,01S

168.7117

41

iffil,52

1015

719

495

17

X17

1.

267

ItO.710

14Z24 al

719

12,007

29l

P2

9.5V

a7A,P

a.218

24

3,IM

091,139

167

119

6 005

1.050

W.313

5`6.9 ""1

745

41~367

'70166

'70,

597

Z392,OM

804 OW

192,M I M 469

290.061

211,410

14457 M

STATISTICAL TABLES

7,11,

(12)

10221.91

SIMI

ITX4

40M

IU272

82.39D

WOCO

8.

473

29.2n

IDA7

65,121

98.~

MAN

171,439

127 No

MM

IzSV

M.M

WIn

111.313

211226

197.6n

68,364

148.MI

833M

117,406

52.75,

715153

23953,

102,189

313W

8,:Wg

1,4231M

21.810

54 .003

72.7M

15,11

nail

12,;.634

-W

M(] 162

lW470

Man

3259.237

54.9V

182.5

MW

910931

M462

1,197.2

_219

'M

61,785

I05M

1.6211062

5.7.

n.W

TM

M.576

7069

585.

;27.lM W

.2

49I.M2

~1%9

M.117

on

949

1.392.075

177.1n

619.881

W.857

ri,M

2 4U, 45

291288

G~.

i13)

910.79D

475.447

17.021

40.160

162.5lis

si.296

I'M

11.311 w

13.8117

6003

la.M

M.W

45.213

78.418

M.952

~ADO

MAI

KIV

Was,

M,970 M 474

57.426

23.865

maw

67.60,1

143.882

B0364

86.0,14

51.892

I.Iol

4~1.681

56"M2

231~U,l

W.179

lU 131

nale

1,=274 MlM

527,367

66.6%

15.103

21.358

119M7

M.

317=

135,115

71.169

3,10,153

w2w

'am

man

870

699 w

M_

102.5n

6I.M

10,343

1.544=

4.974

n.u.

7,031

M.8,17

7.024

567 Q5

Mall

IMAM

111094

53505

..7893

28

I,M5.2"

167..7

590

M

193.M

Mr'n

M9M2

2,275,909

MM

640

5%

15.8,126

5,789

7.570n

n.557

159M

11,587

1768N

243

631011

M2

1.

5'T47

02

333

213

(251

lom

MINI

IM.564

JIM)

168

(1.031)1

005)

16

114

11

too)72

44.914

W.619

8.913M

4,71725

480 ww

.255Z

(12941

21Ml

lawi "I 16,

8*~

wo~

271

111.1"Is

1.10I

19.1.

Si.892

11.1m

M-115

16.765

74

61

269

lowI

M.059

I2n5

Man

I~w6 66,

105,010 WIN

V.1544 1

.11

210

5,315

9813

37MM.

Wn4666 9am

I.M5

25,711

12.807

18,10

35

12.334 W7

14019

782

3.M3

07

~,484

2.422

&W7

13,191

27,

618

IM035

",044

12

V-1

In

51M110

,on,41

536

2.096

,,M70

7.544

401

211

39135

2.70

8.058

5,N2

61

3.1.

'A49

917

2.214

2.150

428

4467

2.W

466 M

lo'lls

90

925

6.03

IM

1"M

34,7115

203

137

2.5`1

775

"w

15,2M1M

13MI MIM

677

2,48

215 w

"In

7,456

Mi

IOX16AI

Is

6,110

34

5,435

2.581

1.31

90

449

2.56I

as

14216

8,721

am$

lM

I.oll

am

1,175

42 43
Table I.-Continued

(in thousands of dollars)

=1-ISM._-

Fit UJIlii.)

BIII-.

I

&~Iyn~~.~ ....~=01._)..

P~

P,_ INR_

MilkAtIlI

INgi.,..

i,~i D'6f

F, (See (b) tiim)

I- ~NM CI

-NiJiF SiN, (b) t,eI

,e Rxk=.,:.

N-M (I

(I-__I

is.; I.;

cll.~ Sit. 1.1 .q ....

..........

"'IF- DA

C.F.90 -'t

M..it. ....... W-)

St.

St. PW

sp~lgl,I ........us.

Rllgw .....

Ab-N"

....:: .... ISM, (g)

ChW-) w

-1

c"

l,lFN4. :.:: =_)l

IN AlIg ........

Lag- N971 III

S__

Is.

S" S. I~w 0 - ... ..... .............

FmrW

FICA N~'

.__W

`===kwo

7~.-.._.-

3AZIM

nsw

18,914 8

4%

MOD"

.S408 I 13

411 X,V

2M

41

Z

53w

1v 665

237%

5~ 912 n 037

22 358

71

:15 15B

85M

09579

40

99 775

52,584

V9M N 618

,low

75.192

200 89 2 1

3'0 ,

15,73I"

675016

173.

I87W n 55

14W

207.

03485

31M

15,45

67 262 n 2W

6,2111, ,

407

M2

13

1 15 7w

71981

20 as

04M N ~

39 W& N 1

76

55725

5'.. 'M2 555

2061o 2 ~

67 39

20464

69~

Ww

uN, 12

St.'D2

Ms M

311.60

us 87,1

275.381 "'

178,6%

MMI

STATISTICAL TABLES

ON.w

V-)

2,659AW

145,005

11597

12 IN M 52

14M~n184 3 In

13.1

058

781

4 M'm"' .I lu

15 In

r.565

-M

57.157

16 726

OZ41

.Ul

N2M

27,137

71,W2

61821 M 255

71.576

M607

51 IN V 476

'78011

52255

72499

susul

11,250

I..-

13113

119 103

~sm

16M

53 611

22~20

"7m

413

29 367

SIM SM

17M

74 625

14m

IQ.=

9346

554%

87 131

33 Us

26007

454M

W"

2.177

16,VI 1

Fill

51,710

17W

50357

55862

37 OR

66 592

51.056 N ww

4,5

256 803

113SIO

148m

im-

~951

117:1

27u 4%

44

RMIMIMN' .. Kw 1W.

U.32I M

805

107

052

556

In

I'm

7.314 M

U71

;.M

IS

.221

2.421

7M

;.103

SM

I.M

3,750

97

~:n 2

NIS"I

1.97

IN

'13 M

19

91

US

Ifil

249

632

ZAI6 74

MI

16,151 N'

.2

MIS

3,~242

2:245 2

2.17N'

11.3111 MS

Q4

1.770 M`

521

`95

875

2.10751

51

6M,

221Z

Q7 43 8"

9.152 n'

W. 'itilikii,

bodFi,Fti, ,No

(29)

1=553

74.~

7.16,

61's

1BX7

5N9 7tW2w

'M

2831

'Z,815

19.M

311

,

"A

HS96

3.861

40."'

10,

24,'S' 78t

W812

6.172

IM, 5,

15,51

20027

at n5

56W

8.88,

1.11D

Mal

Min

4R,042 8

M.M2 067

2451"7 9

111 629

.0?6

Om

I'M

559

'21, I,. 5

131

6.990 4,~Mu

WS

NO

113.1151139

3.859

676

14,059

2,M

17175

MM5

7.0n M

lu,M

(591

159)

76 195

24M5

352

57

Wn

Table I.-Continued

(in thousands of dollars)

!!T.. gicami--..

is.. It, ilmg~

STATISTICAL TABLES

T.Nl-, Mail. till WinilbI iNINN,

prol,l ., 1.

T.1

(21) W)

MW S~, mi.. .... ::::::..: 121 .112 2.522.062

~Atl- P.9 ........ 1131.313 319.05l . ..... ~1 Idl 111:

'84 '36K

2.";l

3

9

... 97.085 73,262

Blook" ~Sw ~,d! 11~

M= W7

M. S. ..115 8879

111-9. 197

7~

59"

766

ISF,, (dl 570 IN

'W070

P_. IN. 2~74 M6

46ZSM 1.124.111~

G-. ifiil~~ i DC)1 ~.3 12"M

On 757 B95 765

ftwwww ... .. (S.M..1 31 ISIS nw

... M4"1 .7

50 4m

33

409

J01. 15,756

Ixz3M 245.66~

A~a ... 197 335 74M

III 623V

..... ...S~ C.N-) ... 15.991 549

M5 No

3

91D

M.311 42.

....... ..

I

,

717

..... ..lS"" 0`1 -1 ......1~7

,8 Pl~ ...... . IA-) ... 25AM

.. ..... (I-) 75."M

'N

~0,,_. u-I 57

5

494

C,NvNil Aegic,l, ................

31

Must

c-,,~ 32.615

D~ '1" I ss931, .249

D-. luum", 49,-

MLI~h ..... .. WIN 43.702 . ........(K~~y) 45,M 2:1

CW. Vlgl.~1 898

s

416

Mi illA. ...... U2915M

is~~ 6;~Oiil; 4~651 1.225

Sul 214

us

6~

19742 6MI

F.W

9

5M N8

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

M-)

5,

N5 .12

O.M. ~Nl

SS

45

S- .-), .:IW21

1 'w"

St. pli. (M-) .......

M

2Q

((1 28, 14 ISM'm

.......

1,

WINS 97,449

1175 617

(7) 35872 S."M

"'IlM,

:062

2D

202

.......= '87Z, 54.781

..........(SF. (g)W 769 2..,

~C.y. (M~l ....... 112:.421 2.098

pNt`-`1

43

Slit :1=7.

:.::~:

,

M2 2513

.......... W. 74

1

725

w FIV. ............... '16012 =3M

3.999

'42 SU532

..........(NtIvvitt) ... 42 ,NO 7.132

L.W.I....... (S. 1.) 93379 ~'Sm

1.9.,.I., 16563 2.W2

"IF, .(s. (a) tiI 97701 2.240

77,4511 3~1

(S.. 1.) 29M 4007

S.F_ _~l 1.1~I..... (28.965t 141 mi

S.-..M ~) ..... 90.084 74:975

W.q.) 08767 AM

=L.0 ......... ...... mm M7

~ R..

OINI ...:::: 117.N' 207

FOdwWW dMW.0 .......

2====-,---Wel

F-" Nt,~

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

WWjN on high.ay in-NNill

11

(a)

.Nli,ilruti. ....

N_

h.d..- 13 oNiN,

(m) (24) in)

1.)

(27) 128)

2.913,242 ID.106 555.0015 2111.102 14,91D I.On."T W4,162

212.01v 42.951 74J71 11,1711 167,325 I56j,,

Q3 3250 562 11,591 476 19 mi)

21o2 6,1 21D III; 56~ 651

"I

,

46 4,72D 21 son

3 Nil

27.uo24 M5

T

12 3~6 (10493)

4"5 7.273 1.121 22

7.343

6.02

- 92 732

n'

1,935

215~

4

U

2 M9 2A95 I&m

u

906

179 9W

1

2.11

62 403 5w In 24;

1'

7,159

68

1

M 3552w 3oR

1Q1

457

43a w?

196,;1111 92 I'm 31.519 ugl.nl~o)

127.

265 in lu

157 0948 793 6Z9 2A54

,

OM ~1,812

35 260

IS

226 SIN

,1

5.902) 90,942 (61M)

"Mu 44 20.90'8 799 1110.0 En7 13 651 i 10619 t 520 Mv WE 8 10219 M 711 5.185 009

MI`X3 4, 1MU8 7m (I

Lai 125.71s 21M I.IMS

'.

379 _w

392 w; 147 '1 9221 9st1 21 02ln060

w SID "6 to 3570 1219r)

.2 59 7~1

Ml

- 2373 16n)

2()9,5`9 13

1,

073 5,454 (2l 1657)

1

1155

141.114 2s 186M4 3W to

113 58I Im "M

1

ffi'

115

1,

631)~ 675J

111, 20 14 X7

"'

1

721 111

4

"'

94 Bus

932

1

81 12.1m

4,37

712 119"

,

4147 Still 13 3W "U.,63 90 41. &V

5 M6 5M 7343N 595 6.11,7

Q= 1,,o~ 69 N3 417' ,. ~.515 l"All? 65,112

2MO

':X

1

52'

(M~ lo3527 X2

1,253 16 17.6" 4,

M7

5,1 34 U.815 7540

10- 14 11,131 MW 507 71,972 (37.=)

9 '73 587 16.383 Z992 17 1~17 16,141

20302 136

`

3H 891

13

u1 5665

Ile 7D

ZHO

568 '330

1

362 (2~31)

mul zwls 97. 47 1w 111.224n ." IN: 45)

IN

29 3,187 192

458 41 In9

1

76

15

6.

9

952

SIQ

43.61N 17.155

119

IsSIX

3 I'm,

14

1

2.62,

4'

15,557

NIS (1'4:4' 95~

85

,I

U

71

4 511 4~

15" 114 14470

2M 165l .,1 13 M5~

37 232

,

NO

W 33 IMF 3140

N

7. Ism3 OM

l

878 12 Om 7M)

2.29 1,426 16,29 6.673 1219)

4~49

57,7

1756 8,425n

3194

4718 5501

1`5112 M.693 MAN XM:m

J.

124

7I= 2..9 358 IS'") 1,4152w

1,~ 134

1

117,

1

- 3. 16. 64,&3~

145

- 1:193

W us

333

974 262

M,IW2 .8 18872 11 79246" 413

&W, 12

6

5" 2:.'

1.13 1~57 27,3MI6

Im"W 8,76 5.112

7

1"1

s

143 10318,

IN

258

1

107.5's 21.095

33 IN (31

4:31 9,`5 OLIN)

M2

4704 OW (90241

90w 4- 817 toM& 15056

2055

1

Z 1134 20659

9

szo j.w)

IM9511 226J MCI

223111

(2112,232~ m6m DO[

7.6703 593BII

u

594) 1,123

N2

-

In

N

-

6.U4

17,79 15 471

M,

(l3) 2.nu 1,51

.m

99

75s 1.4% 3111 51, 2.836

6w 3.5`6

,

295m 386

11

706

47

59

26.221

"i"II

M M)

741

u

:4".1%78 to 1, 925

SIX 'w,47)

ffil 5a IIA12 20 139) 15.435 (67.67o)

9,2741a 5,19,

6

252 I229.372j 381 195m

6834 9,372 576 3,521 6.93,

31222 45~ lom 2,1`53

-

5128 (1,410)

113.956 zw

73 (37D)

IS,

14 12,413 6" 1IM7 5 609

10.874

M..Mw-.-1.U1.

2.65 71 (37011 46~W

240 W7

(9)

(a) mi~ M7.215 9s5M 202

lb W.M7 Q119 MonM

(c) Is,-. ..... 62 121 81.5"l 'a

(d)-Y.... 651587 207X4 701 11111

NI) OW ..... 188579 5l.7973 IM

P) Min M.fin

2 60

980.998 29.W 5241925 591, (9)

45

V

Q17279 18.373 (M~) 133065

7.179 82 10071" 4.195 12.10

24 10M 6'M

,

M

17:.'7'4 65907 12. 15 139.W5 I~M.645376 25

03'

5758 54,176 45.10

Ua

31.5M

15M

(77,851)

19

4'5

'45m

37.019 13.876 M.763 269 log

,

MM2
STATISTICAL TABLES

Table 2-Internal revenue collections by sources

(in thousands of dollars)

G-.0- im 1987

G-I.I.H. ........ ... I ....... ............ I ....................... MZ251,012 MINIM

............. ......... ............ 80.441,620 1018511.985

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

BID 153. 4 243,952

ec 9~1151 742.45Z2M

FCA , ... ...... ..... .... Im.-.74

.--FICA .. . ....... ... 575j24.673 Fl~ 1-, -10.

.. .... .. ...... 3,633.W 4151r~

'-*L---

Is 265. 6,232 000 E. In ...... S.IIU. 17

3801538 mzwg

33. 056 33 10.=

'102Z mwm

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

GW.742 10=57.

'8.85A 674 8.925.m

G~-IW-89~ G~ 311~WPW 2,706 6.640

M3-.~pi~ ........... .... I ......... 48 5M 232.122

. . . ... ....... '285 7M 296.~

10 gI- ................ .... ....... ......... ............. 23433 ~.361

10-, ..... . 63.2~ 712B5

F~I"I~ P~ ~I~J.I I WMM .. . .......... 39.037 42,182

&~- 111- 35 B92 M.9m

~Am.w .... .... 561,158 574,7690

... 3163,9 305.719

UNI07-1 MwW MI - 4 4 -t 01 P;6 W W . .. .....

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

39M9 M.3D9

t60m IIA.332

....... .......... .. .. ....... .610 46,409

ftwi- Vw .... 3,7831 3.MZM

10.356 9,719

gn-, 14 67ON 72.609

2,613.W 2.659"'N

... ....... .... .. 1.091,3M

.d.-Iat,d ...... ...... ........ .

1.020.m

...... ... 7,255.M

T.Mpl- - 3 ~- 2,339.IS3 Z5n.W2

......... .. . ....... 2.707,W 2,913,249

wa ~- . ....... 2.WI.M9 2.663 W

IU.069 1~.W4

$3 ........ 09,057 WIn

W~.025

033 ON

47" -":

7~ 9W

F-="'IeI. ...........

566 6n W006

E.." w

103 274

W ~ 2

M.249 232.3W

SO W&G. 5 W~.. -1 f $10,066 x 2 lt2 ~~.n

217.191 218.102

E- m 902

b~-,-d $5.000 2112 173 m

1'YA d~w Im 951

TAA.,

29t,59

4 M

..................... W 759

:7. 291.5N

C. 11 3

... 8,066.967 14210

A-o

B,mm 128,734)

DOM QM5

In.. . .............. ......... ...... ............... 68-538 ~,167

P~J~W) 11 7 ,-F~

-

14.M7

: : ..... . 1 I'm ~31 w

R.=WAD

3r.glx~ .: .. . . U.872 114,W 10.-

:~ ~::~ .. 1.M0

. ........ ..

.... ~.O~D 0~ ...............................

Q.W

13ml 383

U4.IQ

STATISTICAL TABLES

Table 3-Internal revenue collections by principal sources

(in thousands of dollars)

T-1

F-I,- (1) (2)

19M .. ....... 75112.N9 56,636JU

1957 - ...... M 171.971 W.560,425

IBM .. .......... . 79:97.476 55.101.874

1959 ........... 79 797, 3 58,026,2~

190

91

MM3 67,125,126

196, 94401.086 67.917.941

1962 99~839 71 N5 305

1963 105,925,395 75M 714

I~ 112,260.37 78.891,218

1966 114~~ n792016

1966 128.8n.96I 92,131,~

1967 .. .. ..... .. 148,374.815 IN 288,420

Im - ... - -, 153.636.838 108.14B.M5

Im ............. . I87,919.5M 135,7B.052

1970 ..... ....... . 195.722,D96 138688.568

1971 . ......... ... 191 6ATIN 131.072.374

1972 ........ ..... 209,855,737 143 W732

,on ........... .. 237 787.2N IU 157.315

19. ........ .. .. 268.95Z254 Imme,09I

1975 . ...... ..... 293 W 726 M,116,097

1976 .... ..... 302.519,792 205.751,753

1976 (TO)* .......... 75 462,M 19 M7 4P

19~ ............. 358,139.417 246,805,067

1978 ............... 399 776.3W 278438289

ign ... ~ I .......... 460,412,165 322,993.733

19M ............... 519375.273 3S.927.392

19el ... - ......... 6M.799.103 406,583302

Im ......... ..... QZ240.M6 4I&M9.768

1983 ............ 627.246.793 41 1,407,523

;~184 DID 175.229 437.07IN9

85 .2.871.541 474.072.327

19% .... ......... 782,251,812 497,010,D04

1907 , . ~ ............ 186.m.590 W.311471

I-..PftCAM- W~I E...

(3) 14) (6)

21.298'm 35.337 U2 7,295,784 1,171.237

21,530,6!0 39 029.~2 TM0,522 t.377,M

20.533.316 38 WIM9 8.6A4 W 1,410,925

18.09IM9 Q ~7" 8,853 7. 1 352.982

22.179A14 11"S9,589 I.E26.348

21.761940 46,153.001 12.502451 1,916.392

21.295,711 MN9 5. 12.708,171 2.035,187

2233613' 52.907,581 15.001 486 2,187.457

243DO M 54.59DD~ 17.002.5W 2,416,303

26 131334 51,560,583 17.101 306 2,745.5D2

30.~ 243 61 N7.W 20.255.133 3.093.M

U917.825 69.370.595 26.958.V1 3.014~406

29.896.520 78 252N5 Mm.m 3,081,979

33.337.N6 97 D~~ 33.068657 3 530.065

35.036.983 103661,595 37'.9.1m 3.680 076

30.319.953 IDD.752.421 39.91&690 VU 293

34.925~W 100.079.186 43,714.001 5AWR69

W.W5.30B 125 112,006 52081.7W 4.975 B62

41.744 W 142.9036W 62.093.632 5100 675

45.745 W 156,399437 70,140,W9 4.688,079

46.762 9M IMW T97 74.202.853 5.307,466

9 we:m 39.758579 19.892NI 1485,247

BOND 004 IN.755263 86,076,316 7 425 325

9,380 145 213,M 1. 97.291,653 5.381,499

71,"7.876 ZIM5.057 112,849 874 5.519.074

743n610 207.547.782 IM 33D 48D 6,493,381

73 733,156 332,850,14 152.885 016 6.910.386

65,990m 352.608.936 169717,936 8,143.373

61.779.5% U9 627.W7 173,N7.8SI 6.225 8~

74.179,370 362,891.679 199210,028 6,176.667

".412.769 M.U9.550 M.214 %8 6.579.703

K."m .1619NI- 043.978 DBD 7.194,956

Im6MM5 465452.4M 277,01)(1,469 7,667.670

1'~--

FOOTNOTES FOR TABLES 1-3

*1--m-

,P~

NOTE: D" may W W W =WN NWM

0----.T "F.

zIi. ~~y k.* awm;w &mw

Aw ft-d2,

3

GIW ~ W.&W AM Wr -00I,-W..

4 1~bMmary-,W~OS34~

Th90ftedft~C-(kWrb-I)-I-I"

1997. 0-

6 TAAW--b~.-I~.~(FM

.0jdd-ft-I-~brIN,-.~ftFTD

IRS t,- kbft.,

AD,

9

10

107, .B~... IF-(AT&F) A-, mW~j~IIB~W

~,T~WA-4~b,,A Vm~w'C-'mmm

DIS re.

12.

13

C~

d-Aw P~.hW-===~M G_AN.F~Mam~IIgh"d_ =d=W"E.--T'v W

~.!,Wd

=firI~`- ft dask- I-OF==-T15. C~W8W,-q-dyrangadAxnI5WUp-dW,*e

SECAIAA-mO-Wed 121W-I

..0$4ZODD V m; y- 1906 0.0$0.800 ix 1937.

T4.3=r%=-.1p'U 19-P-0 54=~"

1986- IJ,,IA0$43,BDDW IV.

18,

".A- Th.

-1.--

7 MI-,i ~-fN$42.0D) W

$43.800 1987. Tw 11 t-~ 14,15;- -1,25

t-i wo~,

2.920,574 1.613.497 3 456 D13 2DI9.330

2,973 195 1.674 D50 3761.925 2.243.8%

2.N6 461 1.734021 3 974 135 2.166,675

3.002 096 1.806,816 3,959.789 1.997.292

3.193711 1.931.5W 4 735. 129 2.004.3.

1212W 1.991.117 1,896.8D2 1.953,M2

3.341,282 2.0n.M 5,120.34o 2.2U817

3 LE66 2.079237 5.61o309 2.278.536

3577.499 2.052.545 &MM3 2,M.N5

1~2.634 2.148.M4 6410145 2,453~405

3814,370 2.073.9% 5,613 069 I.M.W9

~ 075.723 2,079869 5,476347 2.4n.W9

4 ZB7.237 Zl= 5,713973 2.196.909

4,~5.560 2,137.U5 6 MI.1 46 2.348A95

4 716,3B2 2.091212 tw.W 2.380 609

4 900.~ 2.DDG 585 6.W IN 3.179985

5.1 Ic 001 2,207,273 5 728.657 3M1,10,

5119.513 2.276 951 5.395,7W 3,7M IN

5358477 2.437,005 5,742,15A 3.572.217

5.3m BM 2.315.090 5.516,611 3 665 IB2

5,427722 2.M7,894 54B6.ID6 3,055.9911

1.305."1 622621 1.&13.339 04007

5AD6.633 2.398.Ml 6.m.w 3958893

5~612.715 2.450.913 6.555,681 4045.639

5 647.924 2.495.517 7.057,612 3 USAW

5.704,768 2,446~06 6.487,421 9960,416

5688.413 2.513857 16,0611.156 r26 059,173

5459810 2.539 495 6.362,900 22.397=

5,634,053 4,1M BID 6.~6.023 19 21~ 853

5402467 4,663.61D 110,107.930 rI78431n

5.3m,100 4,,L83,190 10.020,514 17.1W.0P

6625AM 4607,845 12.3.166 11.041.971

11.097,677 (F-OI) 10221,574 11.991,729

19

Sm br 107, TIm

5 4 -1.~I--

DO TNE~PwD~T,Adddl%l,~ft-,;MW

a-I g,4 W m~ A,= 53.000 w $10.000, ~ixA, 1. Im.

Pr~V --~~""~"Pw,'-

21

1984 DKW =97~21)

V Vel- -91~g~ Mw~75po~COV~=$"r

.g.9 - 26,01)] W-- W S3 W t,-i

OW~ by AT&F Ism t~w W 11)

24

bw 70 NI- d 1986 (I'L 99,514)

-WSO P~~WWWIDVMIASJ~1136)

AW~ -20.1, No, 13

26 EwMSep~W,tgffi(P.LW510).P~m~,j~~IN7

(P.L 99.A99).

27. %"-"MM~O~ O~1983 jP.L ~99),

29

1987 (P.L. 994991

-2.

46 47
STATISTICAL TABLES

Table 4-Annount of internal revenue refunds including interest

(in thousands of dollars)

AmeM. (Shmol MphIemud by single Mond.1

d~indiome,l In penenthoule: WUM; W We, Tout' -W.2

lumne leenn,In sesom 0 esuo,.) 11) (2) (4)

umuldS- euld ........ se;969'Isi 19,1191.132 i.M.713

ftnh~Afltmfitt FI............. .... 13XM221 3,W.M loals'loo M,421

Mon, US 202 32.507 SMADO 6.147

N8.356 38.20 Min 5.016

.........I=to) 2, 52M 500.632 ISKM M."n

p 1 78310 210616 NZ3.257 SOW

1,518.2M 27&W9 1 225,M 12,051

1.14 .157 17MI 121iffi 2897

Maas 02475 1.2s&SM 41.M

3.M.326 1585.905 1,646.313 W913

'emnouth 114,892 0157 339.6(`9 6.255

pmees"o, ......... (Ahoo IIIhet ..... M5%8 42.OZ5 276.363 &W1

iiie.Iutl~ ftPon 5 ................. 12.47494 2.UZ- Mini

B-I . . ovond & D Cj ... 236581B 32,.M IBM= .M

N"~ . . ~ : : ~ ~ = 3,704,535 5832. 1011,597 75.W

J

See 2.708.- 5(uM3 2.121M 40,559

I S. III=W) ..... 1MO.753 196.7M 1.106665 W74

ISO SM inns 1,716.339 Z3.059

iv..V. . . . .5,119 26,.512 1 73,363 4613

Soullt,,wid Rollie, ..... 14. An 109'M 12 .10 191.528

A1,3

E= ......(,IS,eeeu ..... .

Z111.213 1MA2 912.960 X388

C fSotm C~) 1.~ wi 87.719 M50,979 15,116

876.196 SIAM 814,638 9.921

F. i.le6vdae W 54,4n 1.4".= 23-W

C-mbcm ;:954 IM 423.10t 1,417415 MM2

. a WMI 511,199 &W

Acluend, ZMM .50748 241.142 2=571 m2n

I."Ve plo'I ......(~uiwmae) ....... 548212 62.954 1111,570 5412

Non"Be . IM 241219 1314,W3 215N

14,n,Oneem ~:1'76:956 V7.647 1. 1 72.4IZ 18481)

C=6. ..................... 21MIM 3.365.000 141.860

....I . I . I (So, W be.)

I: 'I

M 3*367 1.412,07 ISIM

C*..WM .......Is. I.) le"o') 73.286 IMI,4V 1.811.211 29.081

Neee 4 1,450,221 2. 1,867 62,321

int-o'eh. 4 d 716.499 172,N1 52)"M 16.427

05.165 146,671 825.MD S.On

500,207 34025 157.95 6~

M

n ....................

11,

Oil" 2.

1

70,459 8.643.979 137,932

~~-% . . (Sou, Da~l 141 213 12,459 126 025 . 1.1

pi:4 3SM911 885,176 2,924 24 SIM7

D., Alemo ....... Pee.) ..........

71 418 BBD15 M.M 6,849

Flp ..... 155 M ;13,567 1,602

O'e'loo). IN 16 1,NM13 75,674 2.310

~.k. .........W-)

I

. .516 2W-317 I.V5.395 12,476

omehl 447 074 81,w 357.283 6.256

UI.eue Mis 286.37, IMS65 21.688

st Pout ..... :11). . 1..5513 wM7 1AS139 ESM

see (C) oe-) 953M, MOM 724.9n Sw

HIM, 3,3112.61311 9.574. mm

-teoesous 415,% ~,IM 373.110 4125

Us

'ses",

.... ZIB. 426.351 I.sw W6 20,7%

: ~ : : 3.1%M'

ION inza I,w

D- ....

1224513 Men Z299 903 51,622

242.786 2VA5 Ot. In) 14Sn

"BeII],

2. .905 1.1XIN IX2.W 33.96)

1=358 3 975 $611.745 10.36D

see t.oIe cty uot,) .)~ : : : .t.751 59432 M.W4 &M7

i'llo"SI uh.. $87.130 208~ MAS 4910

6,72I.S32 IM IZ693,Ml N7,257

m5`D 4+117 Z!2.W Ins

som, . ! b 4 a 0 a :: 0 ::::::4 w: Mi"02 24471 M605

He"+

(leei

Howam). 4, ...... 332.64 wMI, 295M

32064V 426,392 2r4566

'379,151 Wis 311BW

See 1,743 5M 2.667.9%

W112 21B= 745,018

Sethwhem, ... (See (a) eeevI ..... 3. 5M $4690 'ZoM

SolF- 567224 i'vi'm

se, Jee, . :1, (See 4)) 2ZMI M24 IM365 1.664,032

183.391 1621R" I.Mins

MASS n 48,952

Peone R. ........ 70-VI 2.411 Saw

oft ....... 4.44 ......... .... 571M2 M296 M5,269

1,314,0213 62ZUI

==Bott.. : : : : : : : : BE W

U.S. c-S-1 ................ 53246

E-d-olotoss. . 64M 64-186

setehe-tuound-ow. 55S(I&` M8.05'

ZSS3 10,

3.9" 1,313

43217 BZ% 12

64M t.793 4

59.19D 1M, 71

12,412 6,184 9

ISM INS (it)

51~314 9.969 In

EAU 1.578 146)

19,6m 2994 2M

20= me (92)

13.223

7.680 (92)

515,W

515.59D

332

518

5,676

647

12,993

ZMI

7.76D "n

10,263

1,814

5,327

057

M

TV"

751

53~216

j~,~ I: : : : : : 3 t45.M 9,596,712 iwi. 42SV 162 38.120

""'o

295.619 3.176.901 61,68D 12,147 821 6,M

o whoo. : ...... 4:ZO. 938 1,107.011 3649+196 59,707 9.213 1. 15+668

48.166,172 1:10717 2 5 W4+M 130.89h 3214 ZW7 KM

1'.~ OV': M.W 561,794 3203,698 48,501 S3S3 624 59.301 4e:M&M 3MS925 SB,973 6.031 l1w) .278

Ili , 461291 2,2Z 5253.546 103,Ml 17.W7 475 7M.95

holow wn" wa w mene oteme, C4 III Wend m,ti,smi=--eme.

Veluln, eemed oxene evelm, refentled. enouraq to S1 4 billon ", ememn; W S231 M`SM Ded M Po'hent'IP she fi&IM" notes M nnum. Into 4fth shmee M hot Wkdol 0 the miehl amount of

P=="" one RnA h0unds W oedo,

6th1e,oo The db:deout ft= lwonalm~=~hme, I Ino tomel et"~

19117. Data W-uU, mr. Mto.- Flg. .1-7 Opeetom" o ement*

The indeon_rdtothetor fedmal Dmb* eni at le $516 milon,

Pronse "teehi co the

p=w V. -the autual thanuolons

1. ot

Indded .M lao. mull the fisaw toe.

E- Gill

eu

M524 7.631) I.M.712

w2" ZZ9 21929

724 13 111,

471 - 419

I'M 11 3.071

5 W 740 &Bn

1,694 (e) 1.992

295 178

4,064 111) M

19,912 ISO 5,458

655 7 208

W6 15 In

ZIM See

3A39 32 11-~ 11378

10172 660 23,819

3 483 (25) 37.7M

ISIS JIM)

ISO 87 V1'7'~

213 M 2+127

2523, I'V, VA

IM 265 9sII

Me 133

1

557

283 'Mi) 4~

3JB65 157 1.012

3,365 141 4.486

M 11 us

SM 664 SW

71 1 557

348 4% T.7

2.DS5 263 5.M

1SM3 M SO 2

3,M 266 10,847

2.675 359 48.533

4,102 .166 13M

1,474 1 5.207

3,187 5 11.725

.6 1.527

17.656 611 41.172

97 - 3"

6.154 25 13,990

I'M in 1,382

1.220 256

7 411

1.598 13 B.686

579 its 1,174

zin 199 10221

1,718 3 2.384

3.059 119 "us

WE "s, 874.21

3,856 Mi 013

5..2 319

510

See

1.033 11 N7

7,687 93 42.31

25D

3

37

3.718 M 14T.9

3,M 41 163460

IB70

1

179

9p 1,22D

1.138 (21

1

155

55-194 M A M

M ME

STATISTICAL TABLES

Table 5.-Number of internal revenue refunds issued

thommul-r"o. and emend.- nd

~-'(Some, pneentlel by

diddeft

.indettow 1. pownVotlee; I

tiam In bee- .1 lable.)

UhReel SISlone! .............

fthh.~ R.O.

' * *

. . :

Ab.1 ~ ..........jr~4 jdj el~)

=~ ~::!,Ma-j

.........

,heuho) ...

Broel* ~See ~d) bWo,) ..... MW ..... .... : See d) sM). ...

D-Von hani.

MInhoon see (d) wIeI,I .... Pedmouth ... 11.11amelk,.) ...

phmmeo, Illhole hised) . . ~ . .

M~Allwmk R-lomn .................

8.~. ........ . (Wrylen! A CC~j ...

him,. ......

F.M.O. . . : ~= '=I : :

bs`o") .....

4~m.

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

,= ..:::: : I= : : : : : : :

Fol La-WenlW. =c

Gh,e,Ittent ... (Iled, Cement) ....

..... PAMSSO) - - .11

........is. (t) woI) .....

NasWU@ ..........(TenhemeI) ......

Nee 0,1eam, ........(Leunw.) .......

CI=Ft"Wh .....................

D,newhw

(Be. W WIoe) .....

(S. W .1m,)

Deme . .

Mumpolo

i-cut,Ihe ..........Kenuft .......

Park" (Wm V%M) -

`oe.) ...

Deette .....

...,. .........

..........

SL Paul. . .........IM-hou) .......

sennON'd See M IteeI) -

ootftw R4g6 ..... I. ...........

Ake,Iluenle, (14e~ Moote)

",ein ... is. imbee.).

q

Hmi- . . .

oushemeo" ~(Owehtm`) Phomo .......... (Imohm .......

III pgion ....................

=7 : : : : : : : : I=)..........

Fona,el, ..........h-u,,o) .........

Lag- -VUeI ...... (See W wite, . ~ . I .

.

..

... I . is. (a) bevI,).

Sees. (Waseglon) ......

h unnattai

Pue. R.

Oft...... ...................

Guoinearte-F.-

V& Cusinho Servite

Route nhantate und-Me ..........

Told, he lemn,-im-.1,em,

comendon Indhiduld EmPlereem E- Cut E..~

Towl Ineem, I.- .

WM

U. Ulm

(2)

13)

14) (5)

808411~3411 7AM 2.118.012 12A7 1,052 135.325

III= 5 92M M.N2 IVA 122 13.045

16183 79 6 so

I :" '33 9

6SRM

M. M 17 -

2.14B.T 21.M

'405163 'OrI91 731

06 .859 M.162 352 11 IM

VIDW ;03.745 ZZI .166 maw 338 20 2JU

1.497117 620 457666 26973 tea 1 1671

1 IN215 i.M JID'S'

299069 10.790

(1)

23SM4 47:4~'19' 3Ins M

1358

.719 1.401.042 19.01

2

1.31 .519 Kin 630 w 2'.8

392,665 3.387 378. 6 11.928

1

4"

X5804 3549 341M 8,420 46 1 Q7

404,M ri'lls IIAKW 291,039 I.M in I?"

2.074,90to 16.114 1,906.453 WN NO 29 3.311

3MI "'

M 433 2.960M 92178 593 23 5,249

23n,489 149M 2A93,712 61 VA 274 30 3.M2

&

.7 7220 1.400.912 a 992

1

61 7 2,247

AOM I&M1 I.94S136 42,927 1 B2 16 3.176 2V.M 2,356 217.W 6,813

1`

1 3U

15,157M7 124.804 K612.359 UO'em I.M IM n,-

I 5,7W 17.281 2011.7W 53414 176 19 3057

M.396 1 ;,224 W 25.727 71 11 1830

109",05 ;:,

,

'Onr I 71 23161 65 6 1 .3

MW

lint

I

.570-M

5l.w 286 49 1.325

2.142,069

1

7M

2.07SM9

15.516 163 21 4060

"I M'

5 M 716.W 16.686 Q 10 1.0ill 2.439.912 MA55 2M. 75 84.w 572 On

1.662253 4M $41369 15169 Q 6 1,389

71 'SM 13.248

1

6w:lp 38.338 Z54 47 6.512 I

V4 619 15221 1,270671 35,162 175 2D IOM

10364M`

"I"

IBM 71 B 20SM 1,1120 BS 11.052 1

.703,311 12.114

1

ZO7qMl 657AM 31,OtS tH M 2.162 16

19 2.M.215 39,616 259 24 2.269

3.119

n

.271 IM1.859 0472 209 Is 3.518

1.629

7 1

1 Wi:611 151M 8.269 30.04 67 14 3,933

BE

SIM 03, 530 20,t99 71 3 1,191

570,

-

2:784 556,992 10MI 49 4 679

10,331,7112 1OZ437

ANN

226723 I.M 140 IBM

IN.Ma 2.M 1M.187 4 096 27 - 638

--N

-IS zM90 ".875 'Ol a 1.542

812.

10

In M.6m 16,558 121 7 1,851 IB55M 2,366 M,I36 5J. 37 1 %9

245.537 1.816 232.851) 6.997 12 1 no 1574.164) 15J21 ism9n 32.200 167 21 IRS

476 74

6.942 49366 11,388 go I I I'M

IS

1.3;03:5'm

:ssa 859 35,592 31 2,662

9, 7 265AID mAM

I o

;3 :.M 'o, 2Di 902.3DD 16215 ~47 4 462

366,11M 12. 088 M1`69 293,369 "In ns MCI$

476,04 4:m

1.-

In 293 1118n u 13 799

48,212 258 37 4.540

IN9 .659 478 25 2 510

ZV5 3`97 30,229 IlM 75 70,889 us 91 4.764

13585

I'M

76 31,190 129 3D 1,670

1212"

1

9 n

40.120 191 M 2.565

963266 D46 24922,765 25.942 IN 0 2.339 I

US 475 10211 1,0055M 0.316 133 14 1.113

Ise tw 3.V9 151.480 IM a 3 700 748 19 10.054 716.352 19.889 10 8 1.8w

Z11"U" IM,622 IL365.322 38M 135 23.3M

MW

176,141 Zen

UZI

165%7 6WS1 - M

257,401 am 24 1 78,

ZV5397 4M X1.96, &SM M 9 396

GD5X9 23.350 2.WS.760 71.99 .5 11 3.807

35D'756

3.237 336614 10 12T 36 1 .1

Z451~05

M

27 131 Zw 751M 96 41 3.638 119 13.W M, E Sits 8 Z960 n`w 9.9413 TM6.wM EM 186 14 "No 1

1 247

w

M

~

IBM

17.511

11180l"M 45,851) BN M 3M

1,5M.711 491?01 no 14 2.784

489,8W 15,450 1,426,606 43.852 182 4 2.4611

295 M Ilso M 24.010 In 1 292

F014 91 45,191 21.399 2 - 31

228341 222,014 2,611 125 1 261

(754.038)

F=, 4:

IN 95,121 8,M5,637 V71895 U. 113 15424

555 38,066 3,M4 682 136,328 BW 93 5.509

......... 1917.259 um 3.795,M si.ow 55, 52 6,1101

"':: : : : :

5,M7.699 48.092 5.706 639 164,559 1,227 87 TIMIS

I.) one . . 3,M716 29.052 3.678,078 Mw - 17 4,Qi

M ...

I

(9)

e13, Z2.181 3.891624 So ISO In 37 52"

5,438.892 67" 5.119,456 ISOM 798 148 IIA69

Column Contents:

2 office of he Issamat Com tefioner (1ht...honal) ~ lenhoj dum,,, Py 1987. Date WIn,ioe,ty mponool mder Mid-Ment, Region Be Forugn

1

is - sho,I,,

'""'

unde, "Ime-onal'.

3 111 Tle 4. amount ot Intemnal -,mf

I

cVfi.N , mf%hdo, ,.~M K- . ~j= . S.;. g I., moth, cmd.. 4 Includes lefunds Ishumcl In Sepehhom I enIber 1987 mat dmehh. y duthItt oefie. Sept. 30, 1987 (ft.. .1 Me fixal Lwr). Fo aoteummil and oemps- pumoses. the dele mduded I, mo mtWe MM ag- Will me amal ImmuelIOM affMing the mhmd end mehoul Immopiawn O=ures lo, fisCaI1=-

48 49
I L,

t_3

6jpo

-

jgooljp v 6 -a IF

-.9-99.

iE ~ -9

MHa P95

qs~~M_M

19f

.

HaFgo~

, I 5~2,1 L. iAl

Z-Z..w

tHS-M

gt-~tNWE

~~_Mszl

VEMM

S0,82H

v 9 "~, Ic 6 =_ 9

a ; 

Men §

Gc

t MM-NMr. TIV MR I ON INUM ON GMEHUM9

RG 5WOMMM ~g aws V 13 4

Ig I

I

IT,

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

............. -..... ...... . ........

................................... -.... ..........

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

.............. .. OM

:Uvoppq

711fi7j7j:

H f

H MUM

I mM

ad

3RI

lit

I

Al

=9Al

=11
Table 7.-Returns filed, examination coverage and results (1987)

~tktotil 101,750,1100 317.525 .GIO439 181.251 1,109,215

1040k TPII I- Slow 19,90"100

w 10~ M -SIO.ODO SWOM

V S~D -&M 000 -P. 21285. NOW 86M 24.181 135 a 64 S

TP: 0,00=0 oM, V5:ODO: -On 9897,8DO 29,373 73919 2U67 28 W I M

M 53MO -S5O,ODD 24.;W300 n.w 235.24D 32.7M W.885 1.4

W1 SWOM It,vcl "r IOMJOD

C-TGA2 1- $25 DOD

1

11378 11414 94 26.0N

1

5~

C~TGR MODO ~ S1OD,ODD 2 U.M 82M 2.049 42 M 2 S;

Sd~* C-TGR SIMOOO io,,D mr :4.0'00 KA7 11 .150 2,M 386

Wed* F-TG ~ 125.00D 2400M 7M 124 2:182

SdW*F.TG $2500-SIODOOO 43650D 1.915 M'249 2 M, 5 III 1.1~

ScI,ec* F-TGR SlOOODO ,nJ MSMD 3.W5 M 581 2

PA-I-Y ZMWO

P-ho 1.713,600

C.,P.A- "1

A~.-W

LkId.r 1150AW SM.80C)

$50.wD ,- $1 WOOD 40D~WO

SIOD.Ow SMAX, 559JOD

29SAO

MODO 31 a MD.500

III .~S5 "IH 196,100

$5 ~ ~SID nA am

$10 "Id -S50nl 31.700

S500-SIODW HOD

SIOD . SZO W I'M

=0 .Iocl 4,6DO

I=112DF 19.DDD

S~Ihh--0-h- 012.0M

I-IIN DW "IS

Ed" thtl $?ADD

G---61 51.70D

0-- $1 ~ -95 ,il 14,BM

G- esISW 95 ~ I,3DD

In 101~=

E.d.

wwdw PrOm IQ=

TM,I; ID! -V

TOW w-I

STATISTILAL TABUL,

11ftCy~ R- I. S..k.

ING q- - TOW C-P

11.OM

8.7~1

0,403 95,653 31379 224,435

5.061;

AM

44,697

211.03D 1.9%6 1.916 0.9,

4,249

3513

4,815

ZJ62

zM

6.596

2,M

5.971

2.785

Z91D

3,.5

335

Un

1.352

15,117

8,751

5,R9

817

I'm

IM6

52

SIM. ....d

Is 100 49.M 105.924

24.M B.w am

-"Set. ~w 109M7.073 4142F 610,439 181251 1205.99

503.309

2.816 4,111

P-II

Pm

2.24

5.066 022

9,m 1.15

US

4.249 049

3,5t3 ON

4.815. 0.06

2.M am

2.M 1.39

6,596 330

zw 2,06

5,971 1084

V85 42 V

ZSIO ON

3 ~ 74.89

335 1.76

21an 1.12

IX2 16.75

15,117 2236

8.751 16.93

5,549 38.01

817 6235

I'M IM

1.10

IAMAW Ss~m ss~m 176

E-0"~ 27AIZWQ 0219 1 4UI7 0.17

42A

Table 7-Continued

R- I. S.M. R- I. R-I I.

T,,td P. '" K- dI,Dr

am 1256 740 5,911 12235 2,1V 4,084 12 1.

59 80 ;55 L34511 1 9195 w 14 TPI $1 0a000 -SaMD. -W

69 ;IS 61 .01 US 1 3 IN WOOD ~U5,OKO-n*.

2w 301 49 w 3,107 1NO 1,40 14 13 IN MOOD - 950.000

1,932 556 4Q 2,690 M.2M 5.817 12,030 10

93 9 13 S~ C-TGA -$a 000 1% 3 SAU 1. 46 1.U9 13

19, 243 7 3.w 9 147

1

63 62

89 Q

1

'085 29,399 BOIS ISMS 12 16 SOdft CJGR SIODODD

S3

226

F.M~WO".~WWII.

S-1w P.

17, 51 102w)

B a 5.567

1.19 Z 24 0 S~~Sdwdwe ~TGR -,S25.000 789

3 0 12 1

1

CID ~15S M9

IS

19 F-TGRS25M0t,,,Ou IODOW

8 43 247 70,391 4.~ 18.236 14 N Sc-1,AI F-TGR $IN,= w

IS M I&M

10516 ISM 2XG13 14 capmum =I

WB NO 108.M Q P31 31 7219 21 $50MO

73 15,D67

6. 64 Z3,138

264 264 40M2 1. $1 ,11 ~ S5 ,,1

10 168 0,913 12 15 ft -$10 NI

4R M 79M7

315 315 113.069 7 SM rrW tI,M, 51 DO ,,fl

570 570 195.731 5 $100 "14-Sao

8.172 Un UM098

147 147 -AM 0 F-II2DF

263 963 63,637

19 159 18121

M V8 SD,ln

I'm 6 I.C96 "Im

Table 7A.-Information returns and

other correction programs (1987)

4 11.428 M MOM - $10DOOO

17M M

w X

US 526 643.718 7 G--S5 .W

227 w ISSM3 14

15,?35 1296 740 17,761 37.902 2.107 13 14

M 159 4,W4 10 E~

350 1 350 I'M IN a 3 WI,-

947

4$- --g.-by S- P- -1~-

IS= 0

53

3,5DI Q

892 16 21

Z156 a 3

Lkdwre" Prog,SI,,

III.-~PW-

"P-I

1040A TPI~ $10 000

..M -Va ODD

TP1 15OODO

13 Fw.1M

Is P-w"

21 $1DO 000 -SMAD

2.242000

463.ODO

SM.000.1de.5DOODO

18 S5O).OD0 ~ 61 .

SID ft $5D ftl

SM ~ --

&-" M.W- .P~

a F- I IN DISC

EsISIs. tc%W

G-,-$1 ~ -S5~

111-.~ w 9ft iOIw

S.O.

151 ,,W.~.1 ft On 1" 7 . -0.

ffl~p POR,

S.M.- A,JIUO,-I III,

M"'ISt, ("i.)

S 1201

22
Table 8.-Returns filed, examination coverage and results (1986)

hw.w".~l ADD 2MISS 73Z,L56

550.0DO 6.507.100

F~,y Valloo

P..0

C.Pm~. 2."7.M

186.40

SWODD~Slm.ooo =.too

Sloo.wo SM.000 SIM

MODD $1 18900

95~~$to~ 262M

$to.~SwM 28,600

Slm~~ $30 4.6DO

SM.__ 4.4W

F= 112DF 15300

G- $1

I.-~61. S5 113M

G-- $5. SOD

'A

7,4111

2.~

5.481

7,252

3AW

3,M

7.lM

3.M

3.0t w

5200

k.-,

~w IN.957,SW 411,302 7M.~

45

54

117M 112.63

Cylum P_

IM At70342

21.875

nM2

n.Tmts~M,dd"W.mft

IMII~.

:t=Wpwo~WZMd=0 r4kid. 19

M -lIIW -l*Kha wW m-I, ft 19% -j-i.

IS

P_

W.WW

1.12

1~.

1040A.

IN

71-

Si o'ooo

SlOODO

M.Z32M 92M 17 W7 3.M7 W.1112 OM 921

.40D 01, 26.465 4310 W'086 ON

TPI$t(),ODD-s,Sn.0mwO*

IN SIOODO -Je, US

2DBM,400 12~ 55.317 3,933 lo'.U5 000, =Oe. IDM'M

M 04 M.W 91,617 13,M 127ml On Sso MAMSM 58,725 308,M V.M ~.064 M

M.089 295

S&,edAC-TGA S~

C~T(111.010)

-SM.000 ~

IM43" 9.02, is "2 25.M I~-

S~ C-TGR SMODD

$100.030 2.021.00

M 895 MIM I.M9 15 1,117.000 36,415 14.M 1,719

52W 2:1

47,

S~F.TG -SM.mo M1.50) 657 IM7 2,4. S~FJGR Mon -Sloo, 0~ 3

10,

S~ 11W6 F-TG

Sjm'oW__

R M5Mo 3'MI'M 2:471 5M 65

21.14

92

7,478 am

1,727M 11,316 17216 In

SOASO 225

2.07 IM.

$50.0003 635C)o 5.M 5.9118

5.01

7252 1.42-

S250000 MOOD 2711MO 4.054 4.0,, 145.

3AB Z04.

$1~~S5" is= 9M 9~9 5m.

3,639 13,M'

7,400 258r

sw~~Sim~ 6'M 3.IM 3.11% 47.5

3272 71.13

3,434 78.05

359? 31

IimIi W.W_ TWOM 7,231 7,931 In

1- 1120 DISC IL300 IM lin 10.37

ftift OW 601700 IGJW 16,784

5.2M `45w

'2~&Sm 1.14

E.O. I".&M "M 46" 445

VANJW 35.227 1.104 3"31 CL13

pm lam Z432 3~6211 SJOGO 57M

Table 8.-Continued

P_

W~

4= 1.425 223 S."I 1.1051 INS ZWO

in 57

1

19, 13. 5 1.195 la~ M 1,125 14

M3 i25 11 916 720 PI $10O.ODD-J~ S25 On, .4,0l

90 78 764 am BI ;2T 71 I'M-SnoW,

032

ill

.5 4,M

"

097 V69 Wl 121M)-150000

N3

338z '.

2M 650 to 183 '316

,

M

6

767

'a, 41VM 4:1 4101.

I1

2

M1 24 683 2,55, goo 104 121,

016 24 708 7.U3 6:7' 59

11I

104

113 113 15,116

160

45

IMA.

w I. SwV1. P_ I. S.M.. P_ I. 5 0 6:1sa 3 0 14 M toP7 .5 a 0 112 1

719 3.160 we

55 M.M

N3 293 QM 1 0

too M.518

M5

7 47 2M

337 337 36037

15313 41M

75 75 64.183 10 $10. W,ft, $50

~

4n 472 IM071 M M 386

5 $in. dr, SMw

7,M, '5' ~Sn

2 S250.--

109 iw 305.05t Fo~ 11MF

in Mo ITAN 54 S~bh,-

71) 701 41

211 211 19335

El

2% M.M

Oo ISO 3210

24

M

311 LMM

on

9M M366 2~406 25

16.162 13

04 1.107

rd." by S----dW 17 rd.Ne

Table 8A.-Information returns and

other correction programs (1986)

55

14 hdillol.-1

TP1,,-S1omo

1

V1 t50.000--

S~ C-TGR-$25-

OTGR $4,000~$100,000

SModUeC.TGRS100.000~mit,

n S~ ~TGR -t, MOM V F.TGR 000~,SIOOMD

23 ScheOA ~TGR S100,000~ m,

Fl&xisry

Lk.1. Swboo

25 MOM~ Mo.ow

23 3100.000- $M.WD

M SM.ODD

- M,DDD

Mom $1~

31 ft 65~

9S.-Sio.

7 sw~ -Sim~

29 1-1IM OW

to G- ""617.

10 G_ atllit 95.

212

M

IMMI GII '6

214 1.125M 17mi MAX 1,945 2MD

1

~o P.M

S."'._

S mi.
I Ln

I ~1

Alm-8.111a Ahball lull!

molmal . L lucdo , Midi AN!

1024bl" "1042§ 'Ngm'b§AT 'difgg

10105

MORI

111111115111 1111111141 ""HI

AH10101 lull Ablom 1 Will

"mWm"& JAMNZ I 11mmul

ANSI molo ".1hija g Mid!

Ad!W! "IQ , " Aw c ~ ~ Indal

%bom, A= , 04WH , WUN!

I 1%W HII.- All 11111110 1 --- I Awim I IQL "I".. "mi "ALI 9" ""=w I I lbbli

IWMII""l

11"WHI"I 1111111 1111 1111111 1111111 1 1 VC11"I

omu

:hWhIn

WHOM MGM i2palm-:-i 49NNN 100hool WIN! 1101hism I Will

CH-HP41m 101soull WN lobbool malm Mull

1MVEH immom alwal

az~SE~i 1;3vusin stiggaii

nd-jE '' angliggs , mfii '' 4094

I . V" t"HIHN"! ""14

1 1 =4-W-a;3.aU 1 _nTana

IIH1111991-9 I Afsgrg

I I 8v-t2l t9a; 1 -8 1111W~G

11919HRSU~ 18VUER

11H§Plimn 'Ti6a

MHH""f I " "21

1"HHHH1 1""if

H""QIHI . MUN!

.... M I I . 16bbi

11SCHW." .1mmommiza NNW
STATISTICAL TABLES

Table I I.-Returns examined by examination divisions

12W .1907

. railp................... 9MIN 917031

FlOlffal, la,. .......................... M 90.50

I

2811W 2F.M

...... ............... ...................... 11 ....... 1,312.a0K) 1.295.622

III, daa,"I'lal

WMalld ...... ........................................................... 1.145,70D 1.157,131

107 M 89

511:912 48,643

........... ......................... ...... ...... 1,31ZQ(I "M.6m

Table 12-Examinations resulting in refunds (excluding claims for refunds)

Aa,aaaal,

N.ffO- d in Pausali ol Wallis)

IM 1W IM 1W

............. 56AM W.902 137976 139.96

=aa

.162 VO '0 9.98,

M ,"47 Q2,0711 387.531

E_ 2 M M."M ~ 5

r.ft .:,: 46 15 728 1 U4

E- : ........ V%) M 92.380

............ 700 543 32,549 5,030

... ........ a - 112

................ N;310 60392 73UDC SM704-7.W Table 13.-Results of delinquent collection activity

(in thousands)

I= tw

T.q.V. dalb.--'

lalpays, dWa.,aa yiak! 94A97,645 S 6,421,420

. .. .

.........

3101 -Me

12-- --- ---- --- ....... Z419 Wl

C""I., - - .. . ..... .. I.M8

(b) S"92"113

PW.* 0'

396 S4(l

D-P_ .................

.......................... ......*..-...:::::::::::::::

M

92 IF

doNd 14

d..& ...... *::: .......... In, a

0,1_ ha . ... . ....................................................... 0 7

haIla'a, I.. LW . ............. ........................................ 767 IF

................. 1,617 2.1)W

S.-d P.P" r,llaia ................ ...... M 20

'ral 1967 lgaaaa, Dgarlaaaala lkzcx,,ii are all by aprawid* 2W= aam,0 ftl*,r, Mastal Fie IMF) -,Ovala,-aaamal .WF gal

in tdAW Masia, Fk (1119.

STATISTICAL TABLES

Table 14.-Civil penalties assessed and abated

(dollars in thousands)

Alaaaaama,lal Mialaaramal

Wialaaa llaalaa lita,ille, Iaila,aia Naa,,itla

1.70 646619 1132.913 141,617

Fal- Z21,217 Ml. 42 M.Ml MWl......... 7.163 .& 17 91Z473

. I ...... ....... CM 3N am I.In F,aaaj ....... ................... II.M 17f,474 764 MAN N.Og- ~ ....................... M.W 303 W MM 43,133 IO.rl"'......

6,M taw 19 10

Ta,al ..........................

WW 110M 13,371 MW

Z217.?U IX3" 421,242

Ca"I'Mahl"?

I56,M 499,nS 48~w 493,914 W.7 439.160 191!Z 349,101

...... .... 4M.491 41M, 149,M VZVO

............. ..... 3AP 110 M7 57 F,ala; ..... ..................... 537 W 32 192n

1134'

27,1 1 20' 7,510

T-t

2OZ414 MM 137,M

I'D== IAX"6 UaW 1.21UI7

2.576.M M.M 372232 =.313

... 6,Q7 5.W z"W 3.512

F-00'%p~::

37 .

FalAxal .

Z 4.149 WIM7 imm

3,4n.On

.7

'M

519,75 MAN

ew~ ............. M 3.047 313 Frl,,lIl .......... ................ Z585 n in O'la" ............ .............. 192 W %

TOW ....................... .. 1121,111171, 3XIMM? I.M.491 E.-kile

Deftl.. ....................... 213J87 38.356 24.11ISI

Dally d1bra,.. ............ .W 71.169 32.1111K) 57,969

Fall. tD 1%P W.123 22.271 74.127 16.M

Feaa,al

. _

........ 45.5118 W,lW 0.9B4 3224 Bad diack ........................ 5.121 56 232 20 F,aaxl ~ .......................... 1,141 5,562 M, 340

Otlaar5

Talad

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

. 733M

425 I'M 97 M

2QW 15WO 13t.013 Estall W alit.................... **'

7,W 15.M 3,370 ..126

"14 716 '160

............. ....... om TA6 W

66 62

14 583

15

79

3 36

Oft'.

9AW 75.W

IO.M 60,

M

....................... M.971 W7.696 117.1m 42"3

115.742 1 42.971) 7JW 2,443 IN 16

.... ...................... I

137

BAS

2 "2 a IN

358.10" 39

.............. 4MM

2.6,15 K65, M4?4

Tftk 0 *11 Paladwall ........ .......

SM1.110 ?I'm Ga,162

26.u&Vl 14,249,M &K"14 4Z4"

1.551.375 5D5.OD2

2AUM ~761

6251.191 n"n,

M.W ~3

10,631 I"'M

924772 26D.471

16~51 I.M7

60.V? 57217

IIA34,476 1.79SAM

ID5.232 5.1161

254622 W.0%

2MM (MIM)

VW 53

505 15W

21M 19.01

V= I.=

72L333 254,6n

2.197.447 !Z)ZIl

3.F5 2.172

4MM 212.055

2.957.322 1,656.911

118,980 2=

813 2,413

172 M

9,3SU42 ZAISJW

245,401 27,12)

11,057 13M)

M.M 6.265

W.604 STM

4.639 36

937 5,2Z2

328 1,692

P&012 "ZIN

1210 1,61,

'556

M

223 M

14 1.5113

12 13

LM 5417

113MI (M an)

M:TI2 i.675

259 M

SID

:

19'"s 157

;,637 tlz=

23.0111.10P

Iicihi~ With ftea-,, Of W, M apply b Y .iaaa. NeVM aaaaaaa, ,I-_,aaj gi

=d_laaaal,-1

,

flaw a, P. I.laal

2). 99oc w IWT~

FIv,,a 9QNI,9Q,M "CT-I.

IC.M al,,j M.

7.k.d. _.bW T. Eq., ail, ,a, j:Y;WS&1ay ~ at IM alal ft Tn Rat-l ki d 19M. ~-a, alaaaaaa, ~ rRC laaa,, 6M W

"==-a-' ft,,1111~37Z()(K. - -Ir 11 .37.. o F_, MW.

ft,, ~ IN7 -e M.M.130 W"

Plo

Table 15-Appeals division workload not before the tax court (nondocketed)

oaaamila, f Calla,

LUS M7

............................................. Q~W 19~

11 3982

22= MMI

.......... ...... * . .......... M,M 39rM

'1'

7 M~W

0,913 1UQ

................................... 2,413 2.W

.................... I ..

......... zw

IV Q

=,C

9~tllatliaIOY - aaIallIII ~--ralailal-ft " aa~ "ataa.

la dkMW allaxi. H-,

~a, ,-,

la-dertai

W a laixle 01Wamatdel-y

Ix

aaaal by appelas ale W -AdDd aa~lliaa alay -y-1y OftV ~raft*.W

laaXIIIII d -PAM N Y-(l -W.WM Waerat .1 al 86'i Wlxwl. NM: in a3lWaIa, Appe0a IXIaeJ 6.8M perailry appeal amll moM pW laaaa

58 59 1 -
STATISTICAL TABLES

Table 16.-Appeals division workload petitioned to the tax court (docketed)

MR IN7

FWC.I.d ......... . .................................. 30.430 4,491

........... : : ... : ............ 2DM 22.6B5

........ I . I .. ........... 1 17,648 UM

by AWI-I ....................... ........... 25.9`1 31,412

=WX ........................ ......... 17M 8 17

........... . ....... '019 3.553 8

OWP.W W.. W.Fe ....................... ........ .. 4,M6 3,997

........................ ...... : .... : ... 1.251 3.012

.......... I . . I I . . I ...... ...... ... 775 9B5

rdWW ~ft may ~ ~W and dmp~ of

;=d=l=Lg7ZW"W= =MC9bd ==y=by aM~ M M UtSWffdy hW W WW "

=~J.~.M

.~.-P". 91.9 1~do~ -V--W W "

Y-~9" -ftady~-J- -PW ~ WM- d -0-M " ~,W

Table 17-Requests for EP/EO tax rulings and technical advice (closings)

Subject T.W Minp IN.

T.W1 .

,

TMO 6.M $3

A..W 937 916 21

~. O'~ .... ... . . .... . . .

3,918 3.513 4D5

,-O~ Pi. ........... . ... .....

2.05 2,351 9.

STATISTICAL TABLES

Table 19.-Number of exempt organizations returns examined by type

S~501(c)(3) ........... P~bl&W ................. 3.6W

M-.0~ft-*~ : I : : : : : : : ~ : : : ::::::::: : ...* . ' . '. . .' * ' .' .' . I.... 259

. . . . ......... 1.769

(='Leag- ~-ftm ..................... .................... 1.214

501(c)(5) Ub. .7~

501(c)(6) .... -* .... ...... . ......... ..... 2940

5p,)M ... I ....... ...... ...... ....... I .... 429

W C) ............. 2.177

521 . :::~ :.:::*::,:: F- ~. ............... ...... ........ Q3

TOTAL ................................................................................. I&M

Table 20.-Number of active entities on exempt organizations master file

=1 I W

SKdon W(c):

I') cn~ g..Uw f C.9. ................. 24 24

(2) TOM." ~ ................................. ........ 5359 5.9n

(3) Pbg- dmnt . . ....... .......................................... 393.01 4MIM

(4 SOCLW -Iffe ............................................................. 133.940 138465

762M 75238

(6) &-Mp. ........... ...... " .- 57 59.98,

Q . . ~ ... :::: ::*. . '. I . .* ....... .......... .......... I ..... %~ W,146

19) (8~ R~brW~ . .................................................... 95 98,979

(10) == : : : ::::::: : : : :::::::: : ::::::: ::::: 107.90 i 17 A', 13

111) T~'~kft ............................ I , : ................. ..... I I 11

(;2) B~V. -- . . . . ..... I ...... I .... .. ...... .............. 5M2 5,572

(13) C~ conkwies ......................................

* *-

7.800 7.942

4) C.*I= ............. ........... 6,068 6,652

1;5) . .......... 94 950

61 CM to I-CMP op~ ................... ....... 18

(17) ~4~ ". b-fi..........

- - ***

:: 142 7M

(10) =V== .........

24.71

3

24.7495

21

(21), ........ 21

. ........... ......... ....... 82

I.I. ...................................... ................. 111 .0

62 .... Z1.3 Z.

::::: ........................... Z133 3,10

...................................................... 29.M 3BA21

TOTAL ............................................................. IM9.415 97&976

AN ~501(C)P=~= W MCW= WCWedb-~WW~ A~ a *,dw 0"WO w~am, a~W

d.~. .d

of

V" dwe , n&Q,

Table 18-Determination letters issued on ERISA employee benefit plans

LW-Wd

7~

EWA M." pffft CWWAd Odd

b- P-0- W.6 EWP cmVWuftn WWI T.W

...... 13 1 570 U765 M 53.82D 22.706 76-IN

P= Mb~- 2672,21 220.3DO 5.739 9068.170 197,M 9,79.= 5,117,480 14.877.002

I

t 0 10 0 12 4 16

OL..h.d ................ 1.722 43,742 1229 95251 307 132.251 62,365 194,616

NN ".bW .............. 0

7

0 16 0 23 5 28

6. U22 147 10,1136 OuaMW ...........

- 17,149 12,0~ 29246

0 6 a

0

W cp'.~ 19 23 .........

=W b. ESOP p~,

~ -PL.

Table 21.-Disposal of exempt organizations applications

AP0fttW4 W d.MMWMHM

APP-W Odw OW. 7M

(I) "'(0: ~nd~ W d Gong- ....... '0

R

SO 10 17B 348

1~41 Sociai wdwe ..........................

............ 31M 13,484 4.367

UZI 63 927 3.500

A 9 139 609

1 191 62 Z 71

V) S0CW d6s ..... ...... ...... I .... .456 60 P9 1 Z127

F~

=

b.,db" ~.............................. 31 9 26 66

--~-- - - - .. - - - - .... 2 209 M

............... 2 62 106

T.&.rV==" 0

gz) B..Vwt M. 161, 1300 301

=

293 65 348

o 3 M (15) MAW i-aw~mmes ...........

... 41 23 61

C-..--~.P.

0

0 0

7) 0 41

0 0

02 89 A1

13 1 9 23

(21) Skvkklg~ ......

(22) E.OW k.W~, ............. I 1 00 1

SDI("C..P;:=Ol i .0..dww

WI ....... :: ............... 21, 1 .1

=dhWbWU-Ud.- W.M. ... ~k-II

........................ 23 0 2 2. 25

................... 1,772 239 633 644

TOTAL ....................................... 43JU 1,012 17AU 62.518

'APO~ ~by MXPaM -J Whim b hw=h M~W Mb~.

60 1 61
STATISTICAL TABLES

Table 22-Internal revenue collections, costs, employees and U.S. population

R.Wm (1)M (3) (1) (5) (6)M (1)

W.'M 7S978 476.484

1

~42 174692 457.33 MA16 2.9D9 47.907

~~469229 MMMAIN 0. r.MO 448.M 51226 2.M U257

;NO W,735 359 91,774,812M0.4 IN 671 W7M 51.047 2.910 0.137

413BS238 94 MISS M.91 5Q91 MAE 3.042 50,164 ... ..... ...

450.053420 99:440MO245 0.~ ;NSN

WM 56.481 3.401 53.08D

............... WW314 105.95.39529,

0

47 59.242 K9,74 W,711 3,657 SSW

1964 ..... ......... S19.69Z0 lIZ20DW.115 0,49 191.889 W.M 61.DR 3.839 57220

7,411 114,01M.nl OS2 ;P

M SM 95 62.0901 58217

624MLM 128.871.961342 0, %-%0 655M 63-IM

, 982 59M

1067 I ...

667SW2% SN 045 IN 712 746.60 M.W ZM 62 OU

104 153 X3 L17M 046 2DD.7W 765,40 67.574 3.967 63,607

1969 ........

735175 87,919,5%.668 OQ 202,677 W.19 66,06. 3,862 MM

M.159.162 :9915:MM,497 045 204.678 055,1 69.6M 4.103 SIM

981.0"7W INJ 0.51 207W 925.63 63.972 4,32 64,614

'172 .........

11 200

1 ..... .::. ;2729D,41 :73BA78 0-4 2M.M8 I,DD4.83 6SM9 4AM 64415

973 1,1313,11

. 170 4M 69,665 1: 62DM.M 237178il.20I.058 D,I9 210.410

1974 ............... 1~312.8!1,6.661 M.9S2M.663 049 21IMI 1.26924 711,11121 4,310 74,611

11, ...... M822.725M

S11221~3.1 1:371111:531n

W%31IM 3M,519.791.= 142 I()IS 14 N264 732 79.&V

In ...... MWOM 3M 139,416.730 0.50 217.M 107.

1 0.743 4,994 78,749

M .....-- 6EI29~27; 399,776309.362 0A9 219,033

21

85M 4,919 SDAID

1971) ............

Z116.166276 I6*4I2,I0,D13 046 M.M 2.08132 MASS INS SIAM

2.29D.B38,622: 519375.273.361 So M.2312 2,275 NI 87464 5,114 Mw

ZwM 6011799 120,630

S

':9 '~l ~; "."

1.110 81,046

I M.24 ~M

.4~1

M 26M-1M 713M 8575M M9

1 '943

...

2:%SM~40: 627,20 792MI .7 M.2252

2M~?;

83:6XI4

1984 ..... .........

3

279.067.495 680175MAM 04 237,450 ZW5.7t 87.W

~3~1 82234086

3~9)0,952.523: 742,111 0. 239 3=9V 922-4 5,45. 86800

49 2410 3,M.512 95M 5361 90,519 06D 7a2ziSI2225

Na

3658160

'987 ........ 254 M.29D M%996 49 2".202 3.629,33 102,IM 6253 95~

'The

"I~

~IRS W="~

~ faaIM 1975~III -W~-

agoo 101 WVi= PelMdd. WIII8 N, IWIoV

-I,W h.W y_". 975 .y.--ol~ ~. ol0 bgL-.~3.

-Ec-~pogw mrapw~nM*Jm 19M 1973W IV741

9;-pI-srckided

, 1974

-1 PM a*zoly 3. wwW N-

.riIIIwl.ATSF 19M. AT&F kk,~d 19%-71.

-+k~ amM sy owImI~W dbw offt Swetwym 1965 T=-Nars~ am oupdW du of ftS..'"M 1M.

P"==w-INOZ. 1904b -d-I, 0~,lN-W ospp=~IWO -Wp--kd

Table Z3.-Costs incurred by the Internal Revenue Service by activity

(in thousands of dollars)

APWOVWJon by AeJ*y

T.W

~C~ loI ElollltI Odw

INS IM INS IM 106 19P

==1Z=1.11 1115 Z151.679 3.061,131 1,10,228 12531W

.........

3,811AS 4M.818 Z749,418 3=116 w2w

1

.01702

Sw.d..InIEqT.W ....

49, KM vim %X0 2ZI15 34JIM

E- 6.473 8.330 5.409

1

:5121 2,818

5..

......................... 82,837 68 82M 6,jN1 WIN MIMS 3i'm

PTGl.ROUN

... 1,247,183 IAN,112 707" 7K 632= 64418

917 JD56202 m5m 66Z M.M =()

....... 329M490 ~Rlo Iw= 117.712 199,105 247,IM

EumbilblM ANW.

T,ol ......

1:401,171 IMI" 1.149= 25Iw 3M3W

139.5DI ~jn MA, MW M.617 MM

AppubW To I&= I6zM9 jWW4 133,%8 160.797 29,041 28697

=Mplllo, M.031 RNO SZ~P

IS=

M.-

.................0 MAN0 259620 7.175

k-dr- T, C.G.1w. ol T.Vw S.11.

11103.1511 12=1 WIN OWNS 279,170 320.1110

7. F,IoI 221205 245= 171

1 1=15 51,10, 61M

C.Ildo, .......................... 606498 650.659 467.094 5DO.772 139.01 159W

I%=::- .... .. 206~212 249.606 IMM1 I&I'Me 78211 96.7611

........

67JB41 663M 55.00 58JBI5 11.951 7,573

FW~01,8995MM TOW ......................

24= 3021" 12M 15.315 lZINI ZLM

IWAINIoW ots bmW dAV FY 1907.

STATISTICAL TABLES

Table 24-Costs incurred by the Internal Revenue Service by office

(in thousands of dollars) ~fl-OMM ft~. PAgw & MT& OrrERN& R SERVICE ...........................

N,-W on

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

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

C-W

kkld~::::::::::::::::::*:,q

S~ ...............

wol"', ........

F%p.W ARxo

P4.w c-; ....................

C-I

...

I ....... I.:............

B. REGIONAL COMMISSIONERS' OFFICEN-

ft-"

TOW C~Qooto, TIo,I, EW1;,nwt O~

(1)M (3)M (5)

445,115 31051,01 IWO 112AZ 1,10&tlg

em", 299,623 3,695 45M5 19ZO51

510M M.SU 11,116 8,213 101,727

VI 615 M.127 8,15D 8.W 68,152

512.= 394.993 18.697 9265 KIM

313M 242.30 10.90 5.062 MM

3SS M7 20M 11.914 7.29 56.506

59 '90, 470,4M 17.M 8,966 100,154

5712S) ~.M WIM 7.851 107M

10SX17 96,169 3.134 2.766 3.70

nM7 M.9% 3210 1`111 3.635 Q 32.M 3,495 ISI12 2,331

27~ 15111 21S 730 IO.w

M.W PINS `% 2.M 117S2

DWbid DhliMn

off""

.0Sw. Como) .................... 2"5 TWO 15.713 12A" lain

Norlh~..................... 2D 948 ISM l1w "'460 7.793

Ltd~::: MIZ51 I0.W2 1,112 1XI 26.453

S- ....... .................. MIN 9.M6 Z676 IMI 15.472

36345 10.= 2.W3 2.501 21,7M

w6M 9.w I'M 950 23.190

S- ....... ....... 57M I'm 2.615 4691 38,M

Voo,,.

........ ............. 74M 13.676 3.996 7M 68,139

C. OUSIRM OIRECTORS OFFtES AND SERVICE CENTERS ................ Z942LOIS Z42LV4 nm 42in 38M

N.M A~ .................. ........... MM 379,596 91752 6,753 03,934

Ab~ .................. SAN 1511in

w MO I.&M

2M 34 65 674

.51

1

........................... 5M VA M5 tall 1001

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

,

.413 45W 1.243 420 8.=

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

3D

401 24.D48 im 572 4.360

3.MO 2869 213 45 423

~,,845 22kS3 KIM 31IM

SO 7,196 Un M5 13.354

qqqqq

7

5.5112 in 810

P~

.

....... 7.113 6YA WOM 8M

-:: :::: ::::::::

. 456 13

MI 622. 430 tMe 21,

BM*- S-clol, ..................... 1N.In 75,499 ISO 27.5"

Wd All.& ......... .................................. 33ZX4 275,74 7.11 T,282

41437

An

8lb,o,,

w 42.824 1,071 1*9 50A

62 61W 1,849 1.712 4,532

............. ................- ......... 50 543 QMI 1,323 94 4,544

'M 21447 950 95 1XI

I'

Mn 1.5M 63, 3.338

Z'

2DO 191 M9

717 .711 66 IN 1.~

MW AJWk ................ ........... 330w

W.486 75.616. 310 I.W 20.117

............. MINIS MI&I" Isill 7'M I'M

WIN 4930 2.01 Q17 0,016

7.IV 104.629 1.OD? 139

;2 .615

M

:~:41-:P:

'AM

.403 ~4 25's 755 MI 7QI 2P

Q..Ilm. ....................... 24297

1

M43w i141

q 12" 249

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

51.004 9.W 16n M 41, 93 M 343

....... : ................................. 12A41 101161

M 178

N.Wk

... .

..... .. .. ................. 31

M 27M1 1,4% 5,5011

.. ................. 31W M."5 I.M 575 2.M

-V ...............I ........ 531 401 so W219 M.644 412 1,187 17,6M

.=s,- . C~ ....... 80584 63,472 395 S" 15,661

.............. ................. 21,1"I'll 23LUI U96 zwl MJ13

Cammla .......................... RM M~M 1278M 3,231

CM,.. ......................... 392U 33M 1,420 311 3,557

D0,,l .... %,517 QSV M1w -StO

211,450 I'M M7 4.322

16A64 14. 78 901 IN 1.338

P-M-bn ....M

,

~im SM 57M

MI SMQ 2D 63

.... 473 410

0

A~~ :: ..... W-162 ow V4 874 15-M

MM'IN, ...................... : .......... ......... =M MIN 10.1n 6.439 33.306

AW,*al .............................................. 001 W7 358 172 284 M I= Z213 1,553 SW

ON X-- 12.611 IS4 485 LM

41M4 348 116 X7

105 014 .9 95 U?

Mft~ ............... 25,342 21 972 654 Z143

on%" . . . . ............... . . ... . ......P ... ... 1I.M

SI.L. ................ . ...... 39,600 339-3NO 1.42MM5 3290560

St Pol ............ ............ .........- .......... 3D224

1

213 386w

13.8% 12.4 758 248 753

FC. .......... ........ 71088 SM2 145 433 1.368

Pp, mftkmd -V ......................... IS 400 21

........

...... 48D M56 387 I'M

4..76

......... 478M 55 65 22

62 63
I ?I

I R

I

MM

~A.msng

* ~ -A 9 22 9

lffl

i

ld

T-zza;:s

--flidgm

-015115 HUE §-Al la -10611, ~Hm i ;.6115gil

-C =_;: gt!

I

s

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in -w-Ril I MOM!

N 2 n §-91 9fil i 'i i i

g HAL -H i~ M a .1 H W9 E5 HS 12M

0

d

If

m

m

m
STATISTICAL TABLES

Table 27.-Chief Counsel receipts and disposal of cases

0W.W T". .1-

...........

............... ... ......... . .. D.I.- SOCOM 7431 bftm . ......... : *. ......................

u9g*'-C~... . ....... . .........--

............I ...............

P*wy Ad appsals ..................................

TOW ..... ................. .............I ....

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

E,pb giam =P.6........ .................... ....

.W -.PI od-d"I ............... ............... I ....... * ....... .......... .. * ...

9-wmi, Ldcow~- ........ .......... ... ... .....

==......................I .......... .......

T.W ......................-I I.I .............

W!=. S-'LZVI

12B 197 174

15a 27 31

24

66 39 2' 48

41

6 23

6

J1A1

11 22 22

34 17 22

106 ISO 146

394 900 574 2 2 2 1;

842 Im 1.104

is 56 56

15a 36

23 22 36

14 25 20 1 2 1

11 36

20 51 35

163 245 231

B-10nod ..... ..........

*'.agam'm hd-6 .............. ::: ...... .....

Domnre;cwinp~ ......I .................. .....

cft~~V.s. pwm .......I ....... ............

B~.Fvwu.....................................

Fo,Wgndm-nts,.t;,is1g ..... ................

T.-ps;. ..........................

s- tg~ ................................

G...w Dacb- FOLAa VMq~ ...........................

AN,"

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

11.14'~j

339

zM9

Z1394

in

5--3163

I=

9"s IU40 11,135

137 97 03

371 173 OD5

I'M 3M 3.

Z021 I.M 1.654 9 6

56 a, is

5.765 619)4 7,106 1 too 546 492 = 5

761

5.

481

24I

21, I

29

lie

an2I

1,061

Is

251

151

36

177

TWAd go.. .............................. 21.493 32MS 29,067 24.021

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

om.

748 Big I'M9 El

24M9

558 347 537

146 471 478 0 24

30139

21

TOK NIODrkW OEM . . ...............................

TVAd Pr*-& NddM .........................

22241 33.214 3D.9N

fb.-.*w ....................................

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

.dw ....................................

T.W .......................................... - == : ....... : ": ........ ..... * ' -- ..................................1......... I ...

7d.1 ..........................................

93 254 253 Q 40 54

27 17 32

17 33 34

29 70 74

190 453 447

47 '5021 14

75

22 so 09

Sig 211 259

R-d MOm=W -ftm

'

L&. ad* mmft of-s-W gk.a n*m M*m wd a*aIIIIeNs0 pw paW

kdLd. ft Oflk. gI kg.Tb..L

ftkd.~1. 1"cb- ar"0.*.1by Mist.

114

26

12a

34

35

354 82

at

COMMISSIONERS OF

INTERNAL REVENUE

Office of Commissioner of Internal

Revenue created by Act of Congress,

July 1, 1862

GEORGE S. BOUTWELL

Massachusetts

July 17. 1862/March 4, 1863

JOSEPH J. LEWIS

Pennsylvania

March 18. 1863/June 30, 1865

WILLIAM ORTON

New York

July 1, 1865/Oct. 31. 1865

EDWARD A. ROLLINS

New Hampshire

Nov. 1, 1865/March 10, 1869

COLUMBUS DELANO

Ohio

March 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 D. PRATT

Indiana

May 15, 1875/July 31, 1876

GREEN B. RAUM

Illinois

Aug. 2, 1876/April 30. 1883

WALTER EVANS

Kentucky

May 21, 1883/March 19. 1885

JOSEPH S. MILLER

West Virginia

March 20, 1885/March 20. 1889

JOHN W. MASON

West Virginia

March 21, 1889/Aprit 18. 1893

JOSEPH S. MILLER

West Virginia

April 19. 1893/Nov. 26, 1896

OFFICIALS

W. ST.JOHN FORMAN

Illinois

Nov. 27. 1896/Dec. 31. 1897

NATHAN B. SCOTT

West Virginia

Jan. 1. 1898/Feb. 28. 1899

GEORGE W. WILSON

Ohio

March 1, 1899/Nov. 27, 1900

JOHN W.YERKES

Kentucky

Dec. 20. 1900/April 30, 1907

JOHN G. CAPERS

South Carolina

June 5. 1907/Aug. 31, 1909

ROYAL E. CABELL

Virginia

Sept 1. 1909/April 27. 1913

WILLIAM H. OSBORN

North Carolina

April 28, 1913/Sept 25. 1917

DANIEL C. ROPER

South Carolina

Sept. 26. 1917/March 31. 1920

WILLIAMM WILLIAMS

Alabama

April 1. 1920/April 11. 1921

DAVID H. BLAIR

North Carolina

May 27, 1921/May 31, 1929

ROBERT H. LUCAS

Kentucky

June 1, 1929/Aug. 15. 1930

DAVID BURNET

Ohio

Aug. 20, 1930/May 15. 1933

GUY T. HELVERING

Kansas

JuW 6. 1933/Oct. B. 1943

ROBERT E. HANNEGAN

Missouri

Oct 9, 1943/Jan. 22, 1944

JOSEPH D. NUNAN, JR.

New York

March 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

RUSSELL C. HARRINGTON

Rhode Island

Dec. 5, 195515ept. 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

April 1. 1969/June 2.2. 1971

JOHNNIE M. WALTERS

South Carolina

Aug. 6, 1971/April 30, 1973

DONALD C. ALEXANDER

Ohio

May 25, 1973/Feb. 26. 1977

JEROME KURTZ

Pennsylvania

May 5. 1977/Oct 31, 1980

ROSCOE L. EGGER. JR.

Indiana

March 14. 198I/April 30, 1986

LAWRENCE B. GIBBS

Texas

Aug. 4, 1986/present

66 i 67
The following served as Acting Commissioner during periods when there

was no Commissioner holding the

office.

JOSEPH J. LEWIS of Pennsylvania

from March5 to March 17. 1863

JOHN W. DOUGLASS of Pennsylvania

from Nov. 1, 1870, to Jan. 2. 1871

HENRY C. ROGERS of Pennsylvania

from May I to May 10, 1883, and

from May I to June 4. 1907-

JOHN J. KNOX of Minnesota

from May 11 to May 20. 1883

ROBERT WILLIAMS, JR. of Ohio

from Nov. 18 to Dec. 19. 1900

MILLARD F. WEST of Kentucky

from April 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 Illinois

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 OcL 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 ofVirginia

from Jan. 21 to Aug. 5, 1971

HAROLD T. SWARTZ of Indiana

from June ?3 to Aug. 5. 1971

RAYMOND F. HARLESS of California

from May1 to May 25, 1973

WILLIAM E. WILLIAMS of Illinois

from Feb. 27 to May 4, 1977. and

from Nov. 1. 1980 to March 13, 1981

JAMES 1. OWENS of Alabama

from May I to Aug. 3. 1986

OFFICIALS

PRINCIPAL OFFICERS

OF THE INTERNAL

REVENUE SERVICE

as of September 30, 1987

NATIONAL OFFICE

COMMMISSIONER

Lawrence B. Gibbs

SENIOR DEPUTY COMMISSIONER

Michael J. Murphy

DEPUTY COMMISSIONER

(OPERATIONS)

Charles H. Brennan

DEPUTY COMMISSIONER

(PLANNING AND RESOURCES)

John L. Wedick, Jr.

ASSISTANT TO THE COMMISSIONER

Donald T. RDcen

ASSISTANT TO THE COMMISSIONER

Richard C. Stark

ASSISTANT TO THE COMMISSIONER

Kenton E. McDonald

SENIOR ADVISOR

James 1. Owens

ASSISTANT TO SENIOR

DEPUTY COMMISSIONER

Roger L. Plate

ASSISTANT TO THE COMMISSIONER

(EQUAL EMPLOYMENT

OPPORTUNITY)

Hardi L. Jones

ASSISTANT TO THE COMMISSIONER

(PUBLIC AFFAIRS)

Ellen Murphy

68

ASSISTANT TO THE COMMISSIONER

(LEGISLATIVE AFFAIRS)

Bryan E. Slone

DIVISION DIRECTOR

(LEGISLATIVE AFFAIRS)

Gayle G. Morin

EXECUTIVE SECRETARY

Robert F. Hilgen (Acting)

TAXPAYER OMBUDSMAN

Jack G. Petrie

INSPECTION

ASSISTANT COMMISSIONER

John M. Rankin. Jr.

DEPUTY

ASSISTANT COMMISSIONER

Kenneth A. Thompson

DIVISION DIRECTORS:

INTERNAL AUDIT

Erwin Sobin

INTERNAL SECURITY

C. Arnold Decker

INFORMATION SYSTEMS

DEVELOPMENT

ASSISTANT COMMISSIONER

Henry H. Philcox

DEPUTY

ASSISTANT COMMISSIONER

Mark D. Cox

DIRECTORS:

APPLICATIONS

David Boose

DESIGN

Peggy O'Rourke

INPUT PROCESSING

Thomas Dega

PLANNING AND

PROJECT MANAGEMENT

William Lowther

STANDARDS AND DATA

ADMINISTRATION

Renee Shaw

COMPUTER SERVICE

ASSISTANT COMMISSIONER

Daniel N. Capozzoij

DEPUTY

ASSISTANT COMMISSIONER

Walter A. Hutton, Jr.

DIRECTORS:

COMPLIANCE

PROCESSING SYSTEMS

Richard W. Marsh

HARDWARE

Ludwig G. Kuttner

PLANNING, BUDGETING

AND REVIEW STAFF

Donald E. Curtis

TAX PROCESSING SYSTEMS

Gerald A. Rabe

USER ASSISTANCE& COMPUTER

CAPACITY MANAGEMENT OFFICE

Bernard F. Miller

TAXPAYER SERVICE AND

RETURNS PROCESSING

ASSISTANT COMMISSIONER

Dominic E. Pecorella

DEPUTY

ASSISTANT COMMISSIONER

John T. Ater

DIRECTORS:

PROGRAM PLANNING

AND REVIEW STAFF

Ophelia W. Burton

RETURNS PROCESSING

AND ACCOUNTING

Michael R. Allen

STATISTICS OF INCOME

Frederick J. Scheuren

TAX FORMS

& PUBLICATIONS

Edmund Goldwag

TAXPAYER SERVICE

Walter M. Alt

PROJECT MANAGERS:

ELECTRONIC FILING

PROJECT OFFICE

Richard Moran

INTEGRATED MANAGEMENT

SYSTEMS PROJECT OFFICE

Gary Brandt

OFFICIALS

COLLECTION

ASSISTANT COMMISSIONER

William M. Wauben

DEPUTY

ASS15TANT COMMISSIONER

Paul M. Harrington

DIRECTORS:

EVALUATION AND RESEARCH

William Rooney

FIELD OPERATIONS

Grant A. Newman

PLANNING& MANAGEMENT

Lewis 1. Baurer

PROJECT MANAGERS:

INTEGRATED COLLECTION

SYSTEM STAFF

William Meehan

LOCATION SERVICES

Jim Day

CRIMINAL INVESTIGATION

ASSISTANT COMMISSIONER

Anthony V. Langone

DEPUTY

ASSISTANT COMMISSIONER

Joseph T. Pagani

DIRECTORS:

INVESTIGATIONS

Brian M. Brun

PLANNING& DEVELOPMENT

Glenn E. McAdams

69

EXAMINATION

ASSISTANT COMMISSIONER

Vacant

DEPUTY

ASSISTANT COMMISSIONER

Ralph F. Shilling

PROJECT MANAGER. AUTOMATED

EXAMINATION SYSTEMS

Robert K. Dooley

DIRECTORS:

COORDINATED EXAMINATION

Donald H. Anderson

DISCLOSURE

William D. Hamilton

EXAMINATION PLANNING

AND RESEARCH

Thomas Andretta

EXAMINATION PROGRAMS

M. Dianne Grant

EXAMINATION SUPPORT SYSTEMS

Carman L. Gannotti

EMPLOYEE PLANS AND

EXEMPT ORGANIZATIONS

ASSISTANT COMMISSIONER

Robert 1. Brauer

DEPUTY

ASSISTANT COMMISSIONER

Robert E. Withers

DIRECTORS:

EMPLOYEE PLANS

TECHNICAL AND ACTUARIAL

Martin 1. Slate

EXEMPT ORGANIZATIONS

TECHNICAL

Edward D. Coleman
INTERNATIONA

ASSISTANT COMMISSIONER

Percy Woodard. Jr.

DEPUTY

ASSISTANT COMMISSIONER

Donald E. Bergherm

DIRECTORS:

COMPLIANCE

William C. Roth

FOREIGN PROGRAMS

Louis W. Hobble

SUPPORT AND MANAGEMENT

Athene Anderson

TAX TREATY AND

TECHNICAL SERVICES

Stanley Novack

TAX ADMINISTRATION

ADVISORY SERVICES

Joe D. Hook

HUMAN RESOURCES

MANAGEMENT& SUPPORT

ASSISTANT COMMISSIONER

Michael P. Dolan

DEPUTY

ASSISTANT COMMISSIONER

Orion L. Birdsall. Jr.

DIRECTORS:

CONTRACTS AND ACQUISITIONS

Edward J. Curvey

FACILITIES AND INFORMATION

MANAGEMENT SUPPORT

John T. Blank

HUMAN RESOURCES

William M. Caine

NATIONAL OFFICE

RESOURCES MANAGEMENT

Suellen P. Hamby

DIRECTOR OF PRACTICE

Leslie S. Shapiro

PLANNING, FINANC

AND RESEARCH

ASSISTANT COMMISSIONER

Vacant

DEPUTY

ASSISTANT COMMISSIONER

Gerry G. Notte

OFFICIALS

DIRECTORS:

DETROIT DATA CENTER.

DETROIT. MICHIGAN

Jack L.Schroeder

FINANCE

Stephen E. Taylor

PLANNING

Alan A. Beck

RESEARCH

Frank M. Malanga

REGIONAL AND DISTRICT

OFFICERS

CENTRAL REGION

REGIONAL COMMISSIONER

Patrick J. Ruttle

ASSISTANT REGIONAL

COMMISSIONERS:

COLLECTION

Donovan H. Williams

CRIMINAL INVESTIGATION

Inar Morics

DATA PROCESSING

Charles F. Jones

EXAMINATION

Donald L. Houck

RESOURCES MANAGEMENT

Jon R. Swan

DISTRICT DIRECTORS:

CINCINNATI. OH

Harold M. Browning

70

CLEVELAND, OH

Jack Chivatero

DETROIT. MI

John 0. Hummel

INDIANAPOLIS. IN

William M. Jacobs

LOUISVILLE, KY

William E. Palzkill

PARKERSBURG. WV

Ronald W. Kirby

DIRECTOR, CINCINNATI

SERVICE CENTER

Frederic P. Williams

REGIONAL INSPECTOR

Vacant

MID-ATLANTIC REGION

REGIONAL COMMISSIONER

J. Robert Starkey

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

Leroy C. Gay

CRIMINAL INVESTIGATION

Thomas A. Wise

DATA PROCESSING

Donald N. Spagnuolo

EXAMINATION

Douglas A. Holm

RESOURCES MANAGEMENT

Joseph F. Kump

DISTRICT DIRECTORS:

BALTIMORE. MD

Teddy R. Kern

NEWARK, NJ

John J. Jennings

PHILADELPHIA, PA

Charles E. Roddy

PITTSBURGH, PA

George A. O'Hanlon

RICHMOND, VA

Gerald R. Esposito

WILMINGTON. DE

Clare Shy Winter

DIRECTOR, PHILADELPHIA

SERVICE CENTER

Joseph H. Cloonan

REGIONAL INSPECTOR

Benjamin J. Redmond

MIDWEST REGION

REGIONAL COMMISSIONER

Elmer W. Kietke

ASSISTANT

REGIONAL COMMISSIONERS:

COLLEC71ON

Allen G. Woodhouse

CRIMINAL INVESTIGATION

Warren E. Harrison

DATA PROCESSING

James A. Grant

EXAMINATION

Leon Moore

RESOURCES MANAGEMENT

Jack E. Shank

DISTRICT DIRECTORS:

ABERDEEN,SD

David H. Reizes

CHICAGO, IL

Vacant

DES MOINES. IA

John Edwards

FARGO,ND

Woodrow D. Malone

HELENA, MT

John C. Wenclorff

MILWAUKEE, WI

Lawrence M. Phillips

OMAHA, NE

Mitchell E. Premis

SPRINGFIELD. IL

Ira S. Loeb

OFFICIALS

ST. LOUIS. MID

Robert A. LeBaube

ST. PAUL. MN

C. Dudley Switzer

DIRECTOR, KANSAS CITY

SERVICE CENTER

Everett Loury

REGIONAL INSPECTOR

Joseph F.Jech

NORTH ATLANTIC REGION

REGIONAL COMMISSIONER

Cornelius J. Coleman

ASSISTANT

REGIONAL COMMISSIONERS:

COLLEMON

Eugene P. Pfeiffer

CRIMINAL INVESTIGATION

Michael Orth

DATA PROCESSING

Francine Crowley

EXAMINATION

Marshall V. Washburn

RESOURCES MANAGEMENT

John J. Dunne

DISTRICT DIRECTORS:

ALBANY, NY

Edwin A. Kelleher

AUGUSTA. ME

James E. Daly. Jr.

BOSTON, MA

John D. Johnson

BROOKLYN. NY

Vacant

71

BUFFALO, NY

Gary H. Matthews

BURLINGTON. VT

Joyce Weitz

HARTFORD,CT

James E. Quinn

MANHATTAN,NY

Pete J. Medina

PORTSMOUTH. NH

Donald Mitgang

PROVIDENCE, RI

Malcolm A. Liebermann

DIRECTOR. BROOKHAVEN

SERVICE CENTER

Bobby G. Hughes

DIRECTOR. ANDOVER

SERVICE CENTER

Thomas M. Quinn

REGIONAL INSPECTOR

Joseph F. Reinbold

SOUTHEAST REGION

REGIONAL COMMISSIONER

Thomas A. Cardoza

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

Vacant

CRIMINAL INVESTIGATION

David B. Palmer

DATA PROCESSING

Henry E. Leech, Jr.

EXAMINATION

Vacant

RESOURCES MANAGEMENT

Lee R. Monks

DISTRICT DIRECTORS:

ATLANTA, GA

Paul D. Williams

BIRMINGHAM. AL

Philip J. Sullivan

COLUMBIA. SC

Donald L. Breihan
Fr. LAUDERDALE. Fl.

Merlin W. Heye

GREENSBORO.NC

John E. Burke

JACKSON. MS

Tully Miller

JACKSONVILLE, Fl.

James J. Ryan

L17TLE ROCK AK

William F. Barlow

NASHVILLE. TN

Alvin H. Kolak

NEW ORLEANS, LA

David G. Blattner

DIRECTOR. ATLANTA

SERVICE CENTER

Sylvia H. Wren

DIRECTOR. MEMPHIS

SERVICE CENTER

Raymond P. Keenan

REGIONAL INSPECTOR

Billy G. Morrison

SOUTHWEST REGION

REGIONAL COMMISSIONER

Richard C. Voskuil

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

Gerald F. Swanson

CRIMINAL INVESTIGATION

Glenn E. Shepard

DATA PROCESSING

Charles J. Peoples

EXAMINATION

James R. Kopidiansky

RESOURCES MANAGEMENT

James A. Lindsey

DISTRICT DIRECTORS:

ALBUQUERQUE, NM

Francis L. Browitt

AUSTIN, TX

Gary 0. Booth

OFFICIALS

CHEYENNE, WY

Conrad L. Clapper

DALLAS. TX

Glenn Cagle

DENVER.CO

Gerald L. Mihilbachler

HOUSTON,TX

Arturo A. Jacobs

OKLAHOMA CITY, OK

Kenneth J. Sawyer

PHOENIX. AZ

Prescott A. Berry

SALT LAKE CITY. UT

Carol M. Fay

WICHITA. KS

Clarence M. King. Jr.

DIRECTOR. AUSTIN

COMPLIANCE CENTER

Robert D. Ah Nee

DIRECTOR, AUSTIN

SERVICE CENTER

Larry G. Westfall

DIRECTOR. OGDEN

SERVICE CENTER

Robert E. Wenzel

REGIONAL INSPECTOR

Derle Rudd

WESTERN REGION

REGIONAL COMMISSIONER

Thomas P. Coleman

72

ASSISTANT

REGIONAL COMMISSIONERS:

COLLECTION

James D. Helm

CRIMINAL INVESTIGATION

Darrell G. Smith

DATA PROCESSING

Fredric F. Perdue

EXAMINATION

Richard S. Wintrode

RESOURCES MANAGEMENT

Charles W. Gilbert

DISTRICT DIRECTORS:

ANCHORAGE,AK

Calvin E. Esselstrom

BOISE, ID

Richard R. Orosco

HONOLULU. HI

Philip E. Coates

LAGUNA NIGUEL. CA

Michael J. Quinn

LOS ANGELES, CA

Frederick C. Nielsen

PORTLAND, OR

Carolyn K. Leonard

LAS VEGAS, NV

Jesse A. Cot@

SACRAMENTO. CA

Raymond A. Spillman

SAN FRANCISCO, CA

Francis S. Miceli

SAN JOSE, CA

Vacant

SEATTLE. WA

Robert E. Mirsberger

DIRECTOR,

FRESNO SERVICE CENTER

Theron C. Polivka

REGIONAL INSPECTOR

Aldwyn K. Hyatt

CHIEF COUNSEL FOR

THEINTERNAL

REVENUE SERVICE

WALTER H. SMITH/1866

WILLIAM MCMICHAEU1871

CHARLES CHESLEY/1871

THOMAS J. SMITH/I 888

ALPHONSO HART/1890

ROBERT T. HOUGH/1893

GEORGE M. THOMAS/1897

ALBERT W. WISHARD/1901

A.B. HAYES/1903

FLETCHER MADDOX/1908

ELLIS C. JOHNSON/1913

A.A. BALLANTINE/1 918

D.M. KELLEHER/1919

ROBERT N. MILLEW/1919

WAYNE JOHNSON/1920

CARL A. MAPES/1 920

NELSON T. HARTSON/1923

ALEXANDER W. GREGG/1925

CLARENCE M. CHAREST/1927

E. BARRETT PRETTYMAN/1933

ROBERT H. JACKSON/I 934

MORRISON SHAFORTH/1936

JOHN P. WENCHEU1937

CHARLES OLIPHANT/I 947

CHARLES W. DAVIS/1952

DANIEL A. TAYLOR/I 953

JOHN POT75 BARNES/1955

NELSON P. ROSE/1957

ARCH M.CANTRALL/1958

HART H. SPIEGEU1 959

CRANE C. HAUSER/1961

SHELDON S. COHEN/1964

MITCHELL ROGOVIN/1965

OFFICIALS

LESTER R. UREM1966 K MARTIN WORTHY/1969

LEE H. HENKEL. JRJ1972

MEADE WHITAKER/1973

STUART E. SEIGEU1977

N. JEROLD COHEN/1 979

KENNETH W. GIDEON/I 981

FRED T. GOLDBERG, JRJI 984

WILLIAM F. NELSON/1986

NOTE:

From 1866 to 1926, the chief legal

officer for the Internal Revenue Service was known as the Solicitor. For

the next eight years, 1926 to 1934.

he had the tide of General Counsel for

the Bureau of Internal Revenue. Since

1934. he has operated under the title

of Chief Counsel.

73

The following were Acting Chief Counsel during periods when there was no

Chief Counsel holding the offlce:

JOHN W. BURRUS

from March2 to Nov. 30. 1936

MASON B. LEMING

from Dec. 6. 1951 to

May 15, 1952

KENNETH W. GEMMILL

from June 11 to Nov. 8. 1953

RUDY P. HERTZOG

from Dec. 1. 1954 to

MAY 8, 1955. and from

Jan. 20 to Aug. 16, 1961,

and from Sept. 1, 1963 to

Jan. 5. 1964

HERMAN T. REILING

from Jan. 19 to March 13, 1957

and from Aug. 31 to Sept 20, 1959

RICHARD M. HAHN

from Jan. 20 to June 25. 1969

LEE H. HENKEL. JR.

From Jan. 16 to June 11. 1972

LAWRENCE B. GIBBS

from April 17 to OcL 19, 1973

CHARLES L. SAUNDERS. JR.

from Jan. 20 to April 15. 1977

LEON G. WIGRIZER

from April 16 to June 23, 1977

LESTER STEIN

from June I to Nov. 16, 1979

JEROME D. SEBASTIAN

from Jan. 21 to Feb. 2. 1981

and from March 30 to Aug. 14. 1981

EMORY L. LANGDON

from Feb.3 to March 29, 1981

JOEL GERBER

from May 28, 1983 to

March 17. 1984

V. JEAN OWENS

from March 14 to July 27. 1986
PRINCIPAL OFFICERS

OF THE IRS OFFICE

OF CHIEF COUNSEL

AS OF SEPT. 30.1987

NATIONAL OFFICE

CHIEF COUNSEL

William F. Nelson

SPECIAL ASSISTANTS TO

THE CHIEF COUNSEL

James D. Bridgeman

Martin B. Kaye

DEPUTY CHIEF COUNSEL

(MANAGEMENT

& OPERATIONS)

V. Jean Owens

ASSISTANT TO THE DCC

(MANAGEMENT& OPERATIONS)

Ronald Pinsky

DEPUTY CHIEF COUNSEL

(POLICY& LEGAL PROGRAMS)

PeterK Scott

SPECIAL ASSISTANTS TO DCC

(POLICY& LEGAL PROGRAMS)

Elizabeth A. Case

Gayle W. Hemdon

ASSOCIATE CHIEF COUNSEL

(TECHNICAL

& INTERNATIONAL)

D. Kevin Dolan

DEPUTY ASSOCIATE CHIEF

COUNSEL (TECHNICAL)

Marlene Gross

DEPUTY ASSOCIATE CHIEF

COUNSEL (INTERNATIONAL)

Chades S. Triplett

ASSOCIATE CHIEF COUNSEL

(LITIGATION)

James J. Keightley

DEPUTY ASSOCIATE CHIEF

COUNSEL (LITIGATION)

Kenneth Little

OFFICIALS

SPECIAL LITIGATION COUNSEL

Stephen M. Miller

SPECIAL APPELLATE COU14SEL

Daniel F. Folzenlogen

DIVISION DIRECTORS:

APPEALS

Howard T. Martin

CORPORATION TAX

James F. Malloy

CRIMINAL TAX

Barry J. Finkelstein

DISCLOSURE LITIGATION

Peter V. Filpi

EMPLOYEE PLANS/EXEMPT

ORGANIZATIONS

James J. McGovern

GENERAL LEGAL SERVICES

William F. Long, Jr.

GENERAL LITIGATION

Amold E. Kaufman

INDIVIDUAL TAX

Mario E. Lombardo

INTERPRETATIVE

Paul F. Kugler

LEGISLATION AND REGULATIONS

Donald E. Osteen

OPERATIONS

Richard J. Mihelcic

TAX LITIGATION

Robert P. Ruvve

74

REGIONAL AND DISTRICT

OFFICERS:

CENTRAL REGION

REGIONAL COUNSEL

Clarence E. Barnes, Jr.

REGIONAL DIRECTOR OF APPEALS

Thomas J. Yates

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Charles M. Layton

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Robert M. Venable

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Mary Helen Weber

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

John A. Freeman

DWRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

CINCINNATI. OH

Counsel-Richard E. Trogolo

Appeals-Benny R. McCandless

CLEVELAND. OH

Counsel-Buckley D. Sowards

Appeals-Raymond H. Fehribach

DETROIT, MI

Counsel-Charles S. Stroad

Appeals-Michael C. Boehm

INDIANAPOLIS, IN

Counsel-Ross E. Springer

Appeals-Gerald W. Wendel

LOUISVILLE, KY

Counsel-Ferdinand J. Lctz ill

Appeals-Douglas A. Weaver

MID-ATLANTIC REGION

REGIONAL COUNSEL

David E. Gaston

REGIONAL DIRECTOR OF APPEALS

James A. Dougherty

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Richard A. Francis. Jr.

DEPUTY REGIONAL COUNSEL

-(GENERAL LITIGATION)

Vacant

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Charles F.T. Carroll

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

David J. Markman

DISTRIL7 COUNSEL AND

DISTRICT APPEALS OFFICERS:

BALTIMORE. MID

Counsel-Herbert A. Seidman

Appeals-Susan H. Hate

NEWARK. NJ

Counsel-Matthew Magnone

Appeals-Patrick Glynn

PHILADELPHIA, PA

Counsel-H. Stephen Kesselman

Appeals-Thomas G. Spaccarelli

P17FSBURGH, PA

Counsel-Donald W. Howser

Appeals-Thomas E. Douglas

RICHMOND, VA

Counsel-Marion B. Morton

Appeals-John D. Piper

WASHINGTON. DC

Counsel-Melvin E. Lefkowitz

Appeals-Thomas L. Kruse

MIDWEST REGION

REGIONAL COUNSEL

Denis J. Conlon

REGIONAL DIRECTOR OF APPEALS

Kevin P. Morgan

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Vacant

DEPUT'Y REGIONAL COUNSEL

(GENERAL LITIGATION)

William J. York

OFFICIALS

,DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Harmon B. Dow

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Jeffrey J. Sieburg

DISTRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

CHICAGO. IL

Counsel-James Kidd

Appeals-John F. Eckert

DES MOINES, IA

Counsel-Mark E. O'Leary

HELENA, MT

Counsel-Thomas C. Morrison

KANSAS CITY, MO

Counsel-James E. Cannon

Appeals-James R. Wells

MILWAUKEE. WI

Counsel-Neison E. Shafer

Appeals-Robert J. Collins

OMAHA, NE

Counsel-Ronald M. Frylkberg

Appeals-Edwin L. Brook

SPRINGFIELD. IL

Counsel-Jeff P. Ehrlich

ST. LOUIS, MO

Counsel-Richard A. Witkowski

Appeals-Frank Brafman

ST. PAUL. MN

Counsel-Robert F. Cunningham

Appeals-H. Larry Stewart

75

NORTH-ATLANTIC REGION

REGIONAL COUNSEL

Agatha L. Vorsanger

REGIONAL DIRECTOR OF APPEALS

Eugene D. Alexander

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Margaret C. Tinagero

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Myron Levine

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Jay. S. Hamelburg

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Robert F. Hermann

DISTRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

ALBANY. NY

Counsel-Gerald A. Thorpe

BOSTON. MA

Counsel-Vacant

Appeals-Linda M. Garrard

BROOKLYN, NY

Counsel-Vacant

BUFFALO, NY

Counsel-John E. White

Appeals-Joseph H. Walz

HARTFORD,CT .

Counsel-Powell W. Holly, Jr.

Appeals-Joseph F. Scherzinger

LONG ISLAND. NY

Appeals-John P. Chambers

MANHATTAN.NY

Counsel-Joseph F. Maselli

NEW YORK CITY, NY

Appeals-Edward M. Schaeffer

Assistant-John G. Imbesi

SOUTHEAST REGION

REGIONAL COUNSEL

Jack D. Yarbrough

REGIONAL DIRECTOR OF APPEALS

Robert B. Douthitt
DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Jack Morton

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Ronald P. Campbell

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Roy L. Allison

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Harry G. Mason

DISTRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

ATLANTA.GA

Counsel-Dean R. Morley III

Appeals-Charles R. Barnes

BIRMINGHAM. AL

Counsel-John B. Harper

Appeals-Robert D. Holt

GREENSBORO.NC

Counsel-Alan 1. Weinberg

Appeals-Larry L. Davis

JACKSONVILLE, Fl.

Counsel-Roy S. Fischbeck

Appeals-John M. Mankat

MIAMI. FL

Counsel-John T. Lyons

Appeals-Steve D. Herscovitz

NASHVILLE, TN

Counsel-Richard J. Neubauer

Appeals-Louie C. Mays

NEW ORLEANS, LA

Counsel-James E. Keeton, Jr.

Appeals-Ray L. Pritt

TAMPA. FL

Appeals-Wayne A. Jaggers

SOUTHWEST REGION

REGIONAL COUNSEL

David L. Jordon

REGIONAL DIRECTOR OF APPEALS

Claude C. Rogers, Jr.

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

Carleton E. Knechtel

OFFICIALS

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Mark L. Puryear

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Gary A. Anderson

DISTRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

ALBUQUERQUE, NM

Counsel-Harry Beckhoff

AUSTIN. TX

Counsel-Lewis J. Hubbard

Appeals-Frederick R. Box

DALLAS, TX

Counsel-Vacant

Appeals-Ronald J. Blair

DENVER,CO

Counsel-William A. Goss

Appeals-Dwight M. Sumner

HOUSTON,T`X

Counsel-Harold Friedman

Appeals-Aubry 0. Myrick

OKLAHOMA CITY. OK

Counsel-Michael J. O'Brien

Appeals-William C. Reitan

PHOENIX. AZ

Counsel-Roger Rhodes

Appeals-Darrell P. Ladmirault

SALT LAKE CITY. LIT

Counsel-Marion K. Mortensen

Appeals-Robert B. Stipek

WESTERN REGION

REGIONAL COUNSEL

Benjamin C. Sanchez

REGIONAL DIRECTOR OF APPEALS

Donato Cantalupo

76

DEPUTY REGIONAL COUNSEL

(CRIMINAL TAX)

William K. Shipley

DEPUTY REGIONAL COUNSEL

(GENERAL LITIGATION)

Perry T. Foster

DEPUTY REGIONAL COUNSEL

(TAX LITIGATION)

Barbara Leonard

ASSISTANT REGIONAL COUNSEL

(GENERAL LEGAL SERVICES)

Robert J. Wilson

DISTRICT COUNSEL AND

DISTRICT APPEALS OFFICERS:

ANCHORAGE,AK

Counsel-James A. Nelson

BOISE. ID

Counsel-Wayne R. Appleman

HONOLULU, Hf

Counsel-William A. Sims

LAGUNA NIGUEL. CA

Counsel-Harry Asch

Appeals-Robert Skilbicki

LAS VEGAS, NV

Counsel-Richard A. Jones

LOS ANGELES, CA

Counsel-Joseph 0. Greaves

Appeals-Raymond E. Gump

Assistant-Bruce J. Conyne

Assistant-Ann B. Mitchell

PORTLAND, OR

Counsel-Michael W. Bentley

Appeals-George F. KAufer

SACRAMENTO. CA

Counsel-Steven J. Mopsick

Appeals-Oris McMillian

SAN DIEGO, CA

Counsel-Donald W. Wolf

Appeals-Boyd E. Taylor

SAN FRANCISCO, CA

Counsel-J. Richard Murphy. Jr.

Appeals-ThomasK Jarrett

SAN JOSE, CA

Counsel-Lawrence G. Lilly

Appeals-Jackson S. Kohagura

SEATTLE, WA

Counsel-Richard J. Shipley

Appeals-Jerald M. Peterson

Assistants to the

Commissioner'

Sr. Assistant to the

Deputy C.-basoINTERNAL REVENUE SERVICE ORGANIZATION CHART

Department ol the Treasury-

Commissioner

Senior Deputy Commissioner

Deputy C-issioner

planning& Reso-

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As of October 1. 1987
INTERNAL REVENUE

SERVICE REGIONS,

DISTRICTS AND

SERVICE CENTERS

CHIEF COUNSEL

REGIONAL AND

DISTRICT 10FPlICES

W~RN REGION

INTERNAL REVENUE SERVICE MAP

78

CEN

-

REGION

INREGION

EGMT~

REGION-

INDEX

INDEX A

Administrative Appeals-Chief

Counsel 37

Advertising& Mailing Campaigns,

Special 14

Assisting the Taxpayer 12

Audit Program& Statistical Sampling,

computer assisted 20

Automated Collection System (ACS) 23

Automated Examination System 20

Enforcing the Law 18

EP/EO Determination System (EDS) 25

Equal Employment Opportunity 31

Examination Results 20

Exempt Organizations 25 F

Forms& Publications 15

B

Bank Secrecy Act 22

Chief Counsel 32

Collection 23

Collection Branch, Service Center 23

Compliance, Research to Improve 21

Computer Services 28

Coordinated Examination Program 20

Corporation& Individual Tax DivisionChief Counsel 34

Credit Card Payment of Federal

Taxes 24

Criminal Investigation 22

Criminal Tax-Chief Counsel 35 D

Director of Practice 30

Disclosure 21

G

GAO/IRS Joint Management Review 31

General Legal Services-Chief

Counsel 37

General Litigation-Chief Counsel 35 I

Industry Specialization Program 21

Industry Specialization Program-Chief

Counsel 37

Information Returns Program 20

Information Systems Development 28

Integrated Collection System 23

Integrated Management Systems 28

Integrity Programs 30

Internal Audit 29

Internal Security 29

International 24

International-Chief Counsel 35 L

Disclosure Litigation-Chief Counsel 35 Legislative Affairs 31 E

Earned Income Credit 11

Electronic Filing 11

Employee Plans 25

Employee Plans and Exempt Organizations Division. Interpretive Division,

Legislative Division and Legislation and

Regulations Division-Chief

Counsel 34

M

Managing the System 26

Maps-IRS and Chief Counsel 78

Master File 11 0

Officials, IRS 67

Officials. Chief Counsel 73

Operations Division-Chief Counsel 37

Organizational Chart 77

Organized Crime& Drug Enforcement

Task Forces ?~

79

P

Penalties& Interest9

Presidential Election Campaign Fund9

Print Media 14

Problem Resolution Program 15

Public Debt, Contributions to Reduce

9

Q

Quality Service, commitment to 31

Quality in Examination 21

Questionable Refund Program 22

Refunds9

Research 28

Resource& Workload Management

System 23

Returns Received8

S

Statistics of Income (SO]) 30

Statistical Tables 41

Strategic Management Systems 28 T

Tax Litigation-Chief Counsel 36

Taxpayer Education 15

Taxpayer Information 14

Tax Receipts8

Tax Reform Act Assistance 14

Tax Reform Legislation-Chief

Counsel 34

Tax Refund Offset Program 11

Tax Shelters 20

Telephone Assistance 14 W

Windfall Profit Tax Program 21