L

Reference

Do Not Remove

Commissioner of

Internal Revenue

Statistics

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'N
Department

of the

Treasury

Internal

Revenue

Service

1978

Annual

Report

Commissioner of

Internal Revenue

Statistics

. of Income

Library

Contents Introduction/3

Collecting the Revenue

Returns Processing/8

Receipts/9

Assisting the Taxpayer

Call, Walk In, or Write/16

Simplifying the Forms/17

Resolving Problerns/20

Enforcing the Law

Examinations/24

Appeals/29

Criminal Investigation/30

Collection/31

International Operations/32

Employee Plans and

Exempt Organ izations/33

Managing the Tax System

Planning and Research/36

Resources Management/42

Data Services/46

Technical Activities/48

Inspection/50

Chief Counsel/52

Appendix/63

I

Addenda:

Statistical data used in the text and tables of this In certain graphs and charts, to illustrate the text,

volume are on a fiscal year basis, unless figures have been rounded and may not add

otherwise noted. For example, data headed precisely to the printed totals in the statistical

"1978" pertains to the fiscal year ended tables which are based on unrounded figures.

Sept. 30,1978. '
Introduction

This annual report covers my first full

year in office. I believe that many of the

actions taken this year by the Internal

Revenue Service have provided and will

continue to provide benefits to taxpayers,

Shortly after coming to the IRS, I appointed a group of senior IRS career

executives to study, in detail, the IRS's

organization and to make recommendations for change, if appropriate. The only

direction I gave the group was that no

change was to be considered which would

decrease service to taxpayers or impair the

effectiveness of the IRS. That group completed its work this year. As a result of its

study and recommendations we either have

implemented or are in the process of

implementing the following changes:

• Functions involving service to the

public have been separated from

otherfunctions at all levels of the

organization - National, regional and

district. The goal is to emphasize the

independence and importance of

service to taxpayers,

• Administrative and support services

are being centralized within the

various offices to increase efficiency

and reduce overhead.

• We are streamlining our smallest

district offices by eliminating a level

of middle management and consolidating certain internal housekeeping

functions into those of larger offices.

Again, this move is designed to increase efficiency. No front line services to taxpayers are affected.

• We substantially modified our administrative appeals procedure. We have

consolidated the former two levels of

appeal - one at the district and one

at the regional level - into a single

administrative appeal structure at the

3

regional level. All appeals officers will

have full settlement authority. We

believe that this system will avoid

delays and duplication and fully protect taxpayer rights. Appeals under

this new system will continue to ba

heard at all locations where appeals

formerly were heard at either level.

We have established a new office of

Regional Director of Appeals, which

is independent of the district office

responsible for the original deficiency

recommendation.

This office also will handle appeals

dealing with employee plans and

exempt organizations, as well as

disputes formerly handled by the

Collection Division.

The Tax Reduction and Simplification

Act of 1977 and IRS efforts to simplify the

tax forms enabled more than 34 million

taxpayers to file the shorter Form 1040A in

1978, an increase of 17.3 percent over

1977. At the same time, 53.2 million taxpayers - 6.1 percent fewer than last year

-filed Form 1040. This shift in taxpayer

filing patterns and the simplification of the

forms were responsible for a 58-percent

drop in mathematical errors made on the

Form 1040A, and a 29-percent decline in

mathematical errors on Forms 1040.

These forms reflected increased taxpayer involvement in their design. For

example, this was the second year that we

held informal public hearings on the tax

forms. This year, hearings were held in

Columbus, Ohio; Columbia, S.C.; Denver,

Colo.; and Des Moines, Iowa.

We also conducted a survey of taxpayer

reactions to the forms by inserting questionnaires in a small sample of tax return
4

packages. At our hearings and through the

survey, taxpayers told us that they preferred

that the forms remain unchanged. The

1978 individual returns follow line for line

the 1977 returns. Tharefore, we have hopes

that error rates will decline even further

next year.

We improved the accuracy of the assistance we provided to taxpayers seeking

help. Through sampling we found that

over 97 percent of our answers to phone

calls were correct and, of the tax returns

reviewed after IRS assistance was given,

nearly 96 percent Were error free. We are

working constantly to achieve higher

quality service to taxpayers through improved training of our assislors and more

extensive quality control.

All taxpayers are entitled to assurances

that the tax laws are administered evenhandedly and that all are paying their fair

share, Our compliance activities seek to

give that assurance.

We have become increasingly concerned in recent years about the proliferation of tax shelters, many of which seemed

to take positions well beyonda reasonable

interpretation of the tax law. Therefore,

during 1978 we doubled our audit coverage of partnership returns and concentrated resources on those returns which

show substantial losses and where tax

shelters are likely to appear.

Abusive shelter deductions increasingly

have appeared on individual returns not

involving partnerships. We have taken

immediate steps to identify such returns

for review. We also have undertakena

longer range project to change, for purposes of audit selection and audit cover,

age, the classification of individual returns,

from one based on adjusted gross income

to one based on total positive income. Returns with high incomes and high losses

will havea low adjusted gross income but,

because of their complexity, should be

treated as high income returns, Th~ new

system will do so.

We know that there are taxpayers willing

to gamble that their returns will not be

examined and, even if they are, that certain

issues will not be uncovered. To shorten

the odds on this "audit lottery," we have

added questions to tax returns that will

help us select the most appropriate returns

for audit and also help our examiners

determine areas on the return for special

attention. We are continuing to study the

problems which we believe this audit

lottery presents toa selt-assessment tax

system.

The nation's largest corporations are

examined under our Coordinated Examina--

tion Program, which involves audits by

teams of specialists. This year we completed a study of this program, and as a

result we are implementing several

changes. We are changing the criteria for

selection of those corporations to be examined under the program from a determination based solely an gross assets to

considerations involvinga number of

factors so that our team resources may be

used more effectively. Other changes include new training programs for these

employees and greater specialization by

industry.

As the fiscal year closed, Congress was

considering tax and energy legislation,

some provisions of which would affect

1978 tax returns. In light of the possibility

of late legislation, the IRS delayed the

printing of individual tax packages well

beyond the scheduled time. Only by the

extraordinary efforts of many dedicated

employees were we able to reflect this

legislation in the forms and instructions for

taxpayers, expedite massiv'a

printing and

distribution tasks and get almost all the tax

packages 10 taxpayers On time.

Over the past two years, the number of

tax returns filed increased by 6.6 percent.

During this same period, employment staff

years at IRS increased less than one percent.

Administering our tax laws is an enormously complex task, one which is handled with a high degree of efficency,

sensitivity and integrity by the 85,000

career Civil Service employees of the

Internal Revenue Service.

This report summarizes the results of

their efforts.

Jerome Kurtz

Commissioner of Internal Revenue

5
Collecting the

Revenue
8 Collecting the Revenue

9

Returns

Processing

IRS service centers received 136.7 million

tax returns of all types in FY 1978

compared to 133.5 million in 1977. Of the

returns received in 1978. over 89.1 million

were individual and fiduciary income tax

returns as compared to 87.3 million in 1977.

Number of returns filed,

by principal type of return

(Figures in thousands. For details,

see table 7, in Appendix)

lype of Return 197.7 1971i

Grand Total 133,522, 136,718-

Income Tax, Total 98,772, 100,775

Individual 85,608r 87,386

Declaration of

estimated tax 8,088 8.103

Fiduciary 1,663 1,732

Partnership 1,1651 1,205

Corporation 2,248, 2,349

Estate Tax 248 160

Gift Tax 287 196

Employment Tax 2S,0241 25,541

Exempt Organization 554 517

Employee Plans 1,287r 1,243

Alcohol, Tobacco

and Firearms 5641 5S2

Excise Tax 910 908

Supplemental

Documents 5,877 6,827

owe revised from Pre,ious annual repon.

After several years of increase up to 1977,

the number of Form 1040 filers decreased

this year while the ranks of Form 1040A

filers continued to grow. The shift frorr)

Form 1040 to the shorter 1040A was due to

the simplification of the form and its

increased availability made possible by the

Tax Reduction and Simplification Act of

1977 and toa greater effort to mail the

Form 1040A to taxpayers who had used the

1040 in 1977 but were eligible to file the

shorter form. The Service received 53.2 million Forms 1040 in 1978, 6.1 percent less

than the 56.5 million received last year. More

than 34 million individual taxpayers, 39

percent of all individual filers, used the

Form 1040A, compared to over 29 milfion

in 1977, an increase of 17.3 percent.

Mathematical Correction

The IRS checked the mathematics on 87.6

million individual returns. As

a result,2

million taxpayers had decreases in the

liability shown on their returns totaling $309

million, an average of $152 per return,

resulting in larger refunds or smaller tax

due. On 3.4 million returns, correction of

taxpayer errors increased their tax liability

by $791 million- an average of $235.

Error rates for Forms 1040A processed

dropped dramatically from last year. In

1977, 12 percent of all Forms 1040A

processed over the same period had

mathematical errors as compared to 5.1

percent for 1978. Error rates for the

Individual Income Tax Returns

Mathematically Verified by Computer

(In Thousands)

1977 1971i

Number verified

by computer 82,488 83,915'

Number of returns on

which mathematical

errors were detected 8,548 5,404

Percent of returns with

mathematical errors 10.4 6.4

Returns with Increase:

Number 4,575 3,371

Amount 628,843 791,363

Average amount

(dollars) 137.46 234.76

Returns vAth decrease:

Number 3,973 2,033

Amount 428,310 309,155

Average amount

(dollars) 107.79 15Z04 1 Nor Vid-g 3,685= vedhed in, other means

redesigned Form 1040 fell from 9.1 to 6.5 The Service also checked the credit

percent ina tally at the close of the annual claimed for estimated tax payments. The

filing period. verification showed that taxpayers underclaimed $259 million in estimated tax The decrease in math errors was mainly

credits and overclaimed by $474 million. attributable to changes made by the Tax

Reduction and Simplification Act of 1977

and the redesign of the Forms 1040 and Receipts

1040A. The new forms eliminated the need Gross revenue collections amounted to

for many taxpayers to calculate their taxes. $399.8 billion, an increase of $41.6 billion

which was the cause of numerous errors in (111.6 percent) over 1977. All major tax

previous years. categories except estate and gift taxes

Gross Internal Revenue Collections

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

Source

Percent

of 1978

increase or Decrease

Collections 1977 1978 Amount Percent

Grand total1 100.0 358,139,417 399,776,389 41,636,972 11.6

Income taxes, total 69.6 246,805,067 278,438,289 31,633,272 12.8

Corporation 16.4 60,049,804 65,380,145 5,330,341 8.9

Individual, total 53.3 3186,755,263 4213,058,144 26.302,881 14.1

Withheld by employerS2 41.3 144,672,331 165,254.230 20.581,899 14.2

Other' 12.0 42,082,932 47.803,913 5,720,981 13.6

Employment taxes, total 24.3 86,076,316 97,291,653 11,215,337 13.0

Old-age and disability

insurance, total 23.2 82,257,211 92,630,407 10,373,196 12.6

Federal insurance

contributions 22.1 78,256,895 88,362,950 10.106,055 12.9

Self-employment

insurance contributions 1.1

Unemployment insurance 0.7

Railroad retirement 0.5

Estate and gift taxes 1.3

Excise taxes, total

4,GOO,316 4.267,457 267,141 6.7

1,910,302 2,642,014 731,712 38.3

1,908,603 2,019,231 110,428 5.8

7,425,325 5,381,499 -2,043,826 -27.5

4.7 17,832,707 18,664,949 832,242 4.7

Alcohol 1.4

Tobacco 0.6

Other 2,7 10.027,573 10,601,321 573,748 5.7

5.406.633 5,612,715 206.082 3.8

2.398,501 2,450.913 52.412 2.2

,,,ui to -11do a-al. at. 11. GbC,=1'-n., Guam

,nd,id,,l income Ia. withheld are not e'm','t'e'dm"eeD'arCa't'e'iycl"oc','ool'd-age. s,,,vo,s d,sab,l,ly and T.sp,ai

ings,,ta-cc, (OASPHI) -as .1 wages .1. usbries s,ri

ect,cas of ind ,duat income- nor wshhetd are hol shared seoa,ateiy from OASDHI bi.as on ireii-emoloyment nc,ma The

a,ou,t of 0ASI)Hl- collections shown is based on as-ate,

made by 1. So.oldry the Tie ......

uhus. 1. in. ov:-he

of sec 201 (at at the SDColl Secu,,Iy Act

a amended, and in, udes

at; OASDHI tribes The estimates show, to, In, two classes ot

;nd,v,d Ib at income ta,es ware ceivoci by subtracting IhO OASDHI a u-na hon, 1. combined ..Is -Wd I Includes Presidential Election Fund m..h,,ng,o sn.64o 9,

includes Poua-al elect,., Fund amDu,t,ng to 1&39~077,131
10

showed an increase. Factors contributing

to this year's collection picture were higher

personal income, higher corporate profits,

and increases in the social security tax rate

and base.

Income taxes accounted for over two thirds

of all tax receipts. Individual income taxes

amounted to $213.1 billion,a gain of

$26.3 billion (14.1 percent) over the prior

year. Corporation income taxes collected

were $65.4 billion

- up by S5.3 billion

(8.9 percent).

Employment taxes- social security, self

employment, federal unemployment, and

railroad retirement-totaled $97.3 billion,

advancing $11.2 billion (13 percent).

This increase reflected

a higher level of

wage and salary payments, increases in the

Net Internal Revenue Collections

through September 30. 1978

(Dollars in thousands)

amounts subject to social security and

unemployment taxes, and an increase in

the social security rate,

Excise taxes registered the smallest

advance of any major tax category, rising

$800 million (4,7 percent) on collections of

$18.7 billion, Much of the gain was g-inerated by excises related to autos and

air transportation.

A new excise tax on

coal to finance the payment of black luno

benefits to miners was effective April 1,

1978.

Estate and gift tax collections registered

the only decrease, falling $2 billion (27.5

percent). The decline was from last year's

abnormally large gift tax receipts caused

by the pending estate and gift tax revisions

of the Tax Reform Act of 1976.

Gross Source Collections

Net Collections'

Percent

of

Refunds' Amount Total

Grand total 399,776,389 39,326,170 360,450,219 100.0

Corppralion income taxes 65,380,145 5,428,280 59,951.865 16.6

Individual income taxes 213.058.144 32,950,536 180,107.608

Employment taxes, total 97,291,653

Old-age, survivors, disability

and hospital and insurance 92.630,407

Railroad retirement 2,019,231

Unemployment insurance 2.642,014

Estate and gift taxes 5,381,499

Excise taxes 18.664,949 I Does nol ncluae --1 p.d - Wunds

50.0

560.940 96,730,713 26.8

517,725 92,112,682 25.6

756 2.018,475 0.6

42,459 2,599,555 01,

9l 5,285,402 1.5

290,318 18,374.631 5.1

The Tax Dollar

Where It Came From

Fiscal Year 1978 (Gross Collections)

A911_1E5fl qz

= axes 24.3 I

Corporation l9come Taxes 16.4

Excise Taxes 4.7

Estate and Gift Taxes 1.3

The Tax Dollar

Where It Came From

Fiscal Year 1978 (Net Collections) q IV

J~11i I Employment Taxes 26.8

Corporation Income Taxes 16.8

ge

L

Excise Taxes

ate and Gil TaxesS .1.5
12

Pipeline At the ten Regional Service Centers

F07@ ag

EO,Itbba. an. -ad-_.-

~--tadan.-a,l

-OtanInn IWY

%t-~ SI004 by typaIfIt.

.1-bon h. Ott,

A.fi,OO -- Irt. by

T-Dapan-IOftb-,,

C--

Once a tax return reaches one of ten IRS shown here are automated for faster Service Centers, it travels through a series processing and faster refunds, people are of processing steps known as "the involved every step of the way. pipeline." While many parts of the pipeline

Refunds

The IRS paid refunds totaling $39.6 billion

to 69 million taxpayers whose income tax

withholding, estimated tax payments or

credits were shown on their returns to have

exceeded their tax liabilities. The average

refund to individuals was $495. This year's

individual refunds included 4.3 million

checks totaling $900 million for the Earned

Income Credit (EIC). In 1977, 67.9 million

individual refunds totaling $36.5 billion

were paid, with 4.4 million checks totaling

$900 million in EIC.

Penalties and Interest

The IRS under law can levy penalties such

as those for failure to pay tax due, bad

checks, delinquency, negligence, and

fraud. More than 15 million penalties

totaling $1.3 billion were assessed with

1.4 million of these amounting to $336

million abated. Almost half of the penalties

Returns Filed and Refunds Issued

Individual Income Tax * January-June

(Cumu~ative 000's, cumulative percentages)

1977 Jan Fab

:Returns Filed

Volume 5,417 31,732

Percent 6.4 37.7

Refunds Issued

Volume 1.7BO 19,418

Percent 2.8 30.4

1978

Returns Filed

Volume 4,635 31,174

Percent 5.4 36.2

Refunds Issued

Volume 1,636 14.685

Percent 2.5 22.8

'R,t,rns pnocea,led by Nal-al Umpute, Conte, and schOd-

,1,1 F_to,C~o,u,,,, no , 0~~ , Rl,,,,,l D,tOu,a,,g Centel, Oclude Only

a 1 A

13

were for individual returns. For detail, see

Statistical Table 13.

The Service also is required to assess

interest against taxpayers who fail to meet

filing requirements. More than $85 million

in interest was assessed on individual

returns this year of which $4 million was

abated. For business returns, interest

assessed was $759 million with abatements

of $95 million.

Interest paid this year amounted to $108

million for individual and employment taxes

and $198 million for corporations. Details

are shown in Statistical Table 7.

Tax Credits

One of the provisions of the Tax Reduction

and Simplification Act of 1977 was the

New Jobs Credit. This is a nonrefundable

credit available to employers meeting

certain criteria in the hiring of new

employees in 1977 and 1978.

Mar Apr May June

50,123 .81,406 83,190 84,129

59.6 96.8 98.9 100

39.700 56,447 62.546 63,823

62.2 88.4 98.0 100

49,617 82,589 84,932 86.075

57.6 96.0 98.7 100

35,489 55.205 63.085 64,357

55.1 85.8 98.0 100

__j
14

Again this yeara credit for child care

expenses was available for working parents

and income credits were offered taxpayers

meeting certain income and dependency

criteria.

The accompanying table shows tax credits

for January through September 1977 and

1978.

1977 1978,

New Jobs Credit No.

- 536tho.aand

Child Care

Expense Credit

Amt.- $1.7 billion

No. 2.7 million 2.9 ..I:i.n

Amt. $0.5 billion $0.5bill..h

Earned Income Credit No. 6.2 million 5.6 mil!,-

Amt. $1.2billion $1.

1 biHon

Presidential Election Campaign Fund A total of 24.9 million individual income tax

returns had designations for the Presidential Election Campaign Fund in 1978 -

28.9 percent of the returns processed

during that period. The amount designated

was $39.1 million. In 1977, there were 23.2

million individual tax returns- 27.5 percent

of those processed- with designations

totaling $36.5 million. The cumulative

amount credited to the fund since it was

initiated in 1972 is $171.5 million.

Automated Information Filing

The IRS received nearly 484 million

information returns from businesses and

organizations required to report payments

of wages, interest, dividends and other

payments. Over 265 million of these

documents were submitted on magnetic

media as

a result of the Service's continuing program to encourage payers that

have computer capability to do so.

Of the information returns received, almost

all of those filed on magnetic media that

report income paid to individuals and

approximately 15 percent of those on

paper will be matched against the master

file.

The accompanying table shows the number

of organizations shifting to magnetic media

filing during the past decade.

Combined Annual Wage Reporting

Combined Annual Wage Reporting (CAWR)

isa new system for reporting employee

wage data which has been developed to

reduce the reporting burden for employers.

This new system will satisfy the reporting

requirements of both the IRS and the Social

Security Administration (SSA). CAWR became effective for all wages paid after Dec.

31, 1977. Under CAWR the requirement to

file ScheduleA with employment tax Forms

941 and 943 became obsolete and the

Form W-2 was redesigned to transmit the

Federal Insurance Contributions Act

information formerly filed on Schedule A.

The Forms W-2 are to be filed with the

SSA which will transcribe the information

and supply it to the IRS,

By eliminating Schedule A, the President's

Advisory Council estimated an annual

savings to employers of $235 million.

Information Returns

Reported on Magnetic Media

Tax Documents Reporting

Year (thousands) Entities

1966 26,248 591

1967 36,492 1,048

1968 47.686 2,426

1969 58,951 2,963

1970 68,300 4,637

1971 91,449- 8,5G4

1972 115.008 12,758

1973 144,533 13.128

185,554 21,862

216,839' 32,486

'1976 248,106 35,013'

265,106 39,980

Data -sed from P,e,,o,s ....al-M.

Ds'.Ua.da' ., -r .-

1973 old p,,o, c,,e,s the6 10111, pel,od J.-ry

hr-gh J.-

Assisting the

Taxpayer

15
16 Assisting the Taxpayer 17

Call, Walk In or Write

The Service provides taxpayers with

comprehensive information about the tax

system and their responsibilities and rights

under it. Aware that the process of determining income, exemptions, deductions

and correct tax can be difficult, the IRS

provides direct assistance through personal

contact, by telephone and by correspondence.

During 1978 the IRS received about

93,000 written, 28 million telephone and 9 million walk-in inquiries. More than 63

percent of these inquiries occurred from

January1 through April 29, 1978- over

17 million phone calls, more than6 million

walk-in inquiries, and over 38,000 written

inquiries, almost 24 million requests for

assistance. Of these filing period inquiries - telephone calls and prepared returns -

over 196,000 were reviewed as part of the

quality review system, This review indicated an overall national accuracy rate of

97.5 percent.

Services

Filing period walk-in taxpayer assistance

was offered at about 690 permanent offices

and at 200 temporary offices set up for the

filing period. These offices were located in

the inner city, business districts, and

suburban and rural areas. When possible,

hours of service were extended for taxpayers unable to call or visit during normal

business hours. Most taxpayers were

required to wait less than half an hour and

more than half waited less than fifteen

minutes for assistance.

The IRS continued to provide bilingual

service to taxpayers who do not speak

English. Of approximately 890 taxpayer

service offices, 207 offices had tax

assistors who spoke foreign languages.

Spanish assistance was provided by 487

employees and 515 employees assisted in

other foreign languages. Bilingual taxpayer

assistance also was provided through

a

questionnaire, translated into Spanish,

Chinese and Vietnamese, that was issued

to taxpayers who could not communicate

in English. Over 35.000 banks and Postal

Service locafions helped distribute more

than 250

milli

on tax forms and instructions.

Toll-Free Phones

IRS toll-free telephone service continues to

reach more taxpayers with greater

efficiency than any other method of

assistance. Almost 97 percent- 17.2

Officellimi Monday-Fdft

8:30~-4:45pm

TAXPAYER

ASSISTANCE

Ufc~ AuMmic.

pwmw M-Mo

I'--

million- of the telephone calls received

during the 1978 filing period were on the

toll-free system.

The toll-free system brings IRS offices as

close to taxpayers as their phones. By

using this system

- without payinga long

distance charge- taxpayers anywhere in

the U.S. may call the IRS for assistance or

clarification of bills or notices received.

Toll-free numbers are listed in the tax

packages and are also publicized to alert

taxpayers to this service.

During this filing period calls answered by

TV phones and teletypewriter service for

the deaf increased by four percent. This

special service has

a nationwide toll-free

number, excluding Alaska and Hawaii,

staffed by the Indianapolis District. As

a

result, hearing impaired taxpayers have

access to services similar to those offered

other taxpayers.

Educating Taxpayers

This year marked the tenth year of the IRS

Volunteer Income Tax Assistance (VITA)

Program. Through this program the Service

attracts, recruits and trains volunteers to

offer free tax assistance to low income,

elderly or disadvantaged taxpayers at

convenient locations and times. Approximately 30,000 volunteer assistors were

trained by the Service as part of the VITA

program

-a 50 percent increase over last

year.

The Service's taxpayer education program

sponsored over 4,000 classes for about

200,000 individuals. Additionally, in the

school programs, "Understanding Taxes"

and "Fundamentals of Tax Preparation,"

about five million tax course books were

distributed to high school and college level

students throughout the country.

The refresher income tax law course also

was revised and made more flexible by

leaving the districts free to selecta number

of tax law topics based upon local quality

review statistics.

Simplifying the Forms

The last-minute congressional.preadjournment flurry of activity produced the year's

most important legislation for the IRS, the

Revenue Act of 1978 and the Energy Act

of 1978, The problem faced by the IRS was

to reflect these late changes in the law in

the forms and instructions being designed

and printed for 1978 so they could be

available for taxpayers in time..

Despite problems created by late legislative changes, simplification efforts continued. This year's efforts focused on

rewriting and redesigning the instructions

for Forms 1040A, 1040 and related schedules, The instructions now have a 9th grade
18

readability level compared toa 13-14 grade

level two years ago, with graphic design

changes also improving the instructions.

The changes include opening up vertical

spacing between sections and paragraphs

to ease crowding, using an irregular right

hand margin to maintain natural word

spacing and introducing bolder primary

headings and subheadings for emphasis.

Another significant improvement is the

explanation of items, line by line, in the

instructions.

But simplification efforts were not limited

to the Form 1040 family. The instructions

for Form 941, Employer's Ouarterly Federal

Tax Return, were rewritten and Circular E,

Employers Tax Guide, is being rewritten,

both to improve readability. In addition.

after the Service requested comments on

a

simplified Form 940, Employer's Annual

Federal Unemployment Tax Return,a new

Form 940 was developed which eases the

computation of unemployment tax for over

90 percent of filers.

Form 5329, Return for Individual Retiremerit Arrangement Taxes, and Form

5500-K, Annual Return/Report of Employee

Pension Benefit Plan for Sole Proprietorships and Partnerships also were revised.

The 1978 Form 5329 will need to be filed

only by individuals who owe one of three

individual Retirement Arrangement taxes

on excess contributions, premature distributions and certain accumulations in

IRA accounts or annuities.

Form 5500-K no longer is required for

plans in which an owner-employee is the

only participant in 1978 and all previous

plan years, nor is it required for partnerships when the only plan participants are

partners who own more thana 10 percent

interest in eitherthe capital or profits of

the partnership.

In July the General Accounting Office

issueda report entitled, "Further'Simplification of Income Tax Forms and Instructions Is Needed and Possible.'' The

report stated that although the IRS has

progressed in making the forms and

instructions easier to read and understand,

more can be done. GAO suggested that

the IRS establish

a high-level task force

to improve the forms. This task force,

consisting of the Commissioner, Deputy

Commissioner, and several Assistant

Commissioners, has met, and is developing a plan of operation.

Also, public hearings on the forms were

held in Denver, Colo.; Des Moines, Iowa;

Columbia, S.C., and Columbus, Ohio.

Although many of the suggestions will help

to improve the 1978 tax forms under

existing law, others require change in the

law.

Publications

Continuinga policy adopted in recent

years, the IRS distributeda number of

publications free of charge. During this

year, 3.1 million copies of Publication 17,

Your Federal Income Tax, were distributed,

along with 1.1 million copies of Publication

334, Tax Guide tor Small Business and

830,000 copies of Publication 225, Farmer's

Tax Guide. Additional tax materials

including tax return forms were furnished

on request to over six million individual

taxpayers, 600,000 tax practitioners and

360,000 employers.

Besides the three comprehensive tax

guides, the IRS issues over 80 smaller

publications concerning specific topics

under the income tax, excise tax, exempt

organizations, pensions and annuities, and

estate and gift tax statutes.

Three of the publications were written in

Spanish- Publications 579S, 556S, and

586S- explaining basic rules about

preparing and filing

a tax return, taxpayer

rights ifa return is examined and the taxpayer's payment responsibilities if additional tax is due.

Graphic Arts Cited

The IRS publishes

a variety of publications

to assist taxpayers. Since much of the

information that must be explained is complex, considerable effort is made to

produce publications written and designed

to communicate effectively. A long list of design awards won in recent

years attests to the success of this effort.

In 1978, for example, the taxpayer information publication Farmer's Tax Guide and

the Understanding Taxes student text and

announcement poster were selected for

the annual Art Director's Club exhibition in

Washington, D.C. The~ Understanding

Taxes student text receiveda Silver Medal

Award for design excellence.

Information Dissemination

The IRS relies heavily on the mass media

to inform the public about its operations and to explain tax laws, regulations,

rulings and procedures. During 1978

material Was sent to 16,067 radio and TV

stations, daily and weekly newspapers,

magazines and special publications. Additionally, IRS personnel participated in

16,158 interviews and answered 18,568

media inquiries,

The IRS issued 4,901 news releases to the

media covering substantive technical and

procedural matters, tax forms and publications, statistics, speeches by IRS officials

19

on important tax topics and organizational

changes, There also were releases to

assist taxpayers in meeting due dates and

properly filling out forms and in understanding their rights and responsibilities

under the tax law.

Four IRS half-hour color films presented

information on the American tax system,

audit and appeal rights and responsibilities,

tax aspects of runninga small business

and how to preparea tax return. These

films, two of which also were released in

Spanish, appeared 514 times on TV across

the nation and 3,045 times before professional, trade, civic, educalional and

other groups.

"Where's My Refund?"

In an effort to respond more timely to

taxpayer inquiries about not receivinga

refund, Ithe IRS, in 1978, began to put all

these requests on magnetic tape before

forwarding them to the Bureau of Government Financial Operations. Additionally, all

inquiries for nonreceipt of refunds are now

monitored by the Integrated Data Retrieval

System to improve responses and to

eliminate duplicate follow-up action.
1i

20

Resolving Problems

Under the Problem Resolution Program

(PRP), the IRS attempts to resolve taxpayers' complaints not satisfied through

normal channels and to identify systemic

and procedural problems needing correction. During 1978 approximately 66,000

taxpayer problems were resolved through

PRP.

The program was continuously reviewed

this year with procedures rewritten to provide more uniformity and visibility and to

expand PRP to service centers. Many systems and procedural changes have resulted from PRP, improving IRS efficiency

and responsiveness to the public. A major success of the program has been

the establishment of liaison with other

government agencies to assist in the

resolution of taxpayer problems. such as

lost and stolen refund checks, and internal

processing problems, such as incorrect

social security numbers.

--v;

Making Information Available

Reflecting the IRS's attitude that responding promptly to requests for information

and documents under the disclosure laws

and the Freedom of Information and Privacy Acts is an important part of service to

the public, the Disclosure Operations

Division and its field counterpart were

moved from the Compliance function to the

Office of the Assistant Commissioner (Tax.

payer Service and Returns Processing).

During Calendar Year 1977, 7,913 requests

were received for documents not available

in IRS Freedom of Information Reading

Rooms. Of these 5,438 were granted in full

and 748 in part. The National Office Reading Room responded to 18,415 requests

for information.

The IRS received 738 requests for access

to records under the Privacy Act of which

475 were granted in full and 95 were

granted in part. Only 10 requests were

received to amend records.

The IRS increased its efforts to maintain the confidentiality of tax returns and

return information by increasing disclosure

training for employees, beginning an annual review of safeguards of other federal

agencies that are entitled under the law

to obtain confidential tax information and

by implementing recordkeeping and reporting requirements for the disclosure of tax

returns and return information.

The Tax Reform Act of 1976 revised the

disclosure provisions in the tax law by

considerably restricting the circumstances

under which, and the methods by which,

federal agencies may obtain tax information for nontax purposes. It also

requires that those who have access to

such information maintain safeguards for

its protection. Federal tax information

received by states may be disclosed only

to state agencies charged with administering state tax laws, upon request of the

head of the state tax agency.A new

provision permits disclosure of tax

information to federal, state and local child

support enforcement agencies for the

purpose of collecting child support

obligations. Among disclosures made in

this year were 3,148 to the Department of

Justice, 35,249 to child support enforcement agencies and approximately

80,000,000 to state tax agencies.

The exchange of confidential tax information with the states is intended to increase

tax revenues, reduce duplicate audits and

increase taxpayer compliance, IRS field

disclosure officers visit each state tax

agency semiannually to check on the

adequacy of their systems for safeguarding

the confidential information provided to

them. All federal/state agreements on

coordination of tax administration that were

in effect before enactment of the Tax Reform Act of 1976 were amended. There are

now 97 agreements in effect.

Preparer Ethics

The Tax Reform Act of 1976 requires tax

return preparers to conform to general

conduct standards and to follow specified

disclosure and reporting rules. The Act

also provides penalties ranging from

$25-$500 for noncompliance with the law

and regulations to help protect the public

from certain questionable practices and

abuses in the preparation of tax returns.

The IRS has taken several steps to

inform the public- specifically the preparer community - of the provisions of the

Act. Proposed instructions for preparers

were printed in informational forms

packages,a new question-and-answer

publication was issued,

a letter was sent to

all preparers of record and various news releases and information letters were

distributed with specific examples of practitioner errors, particularly those concerning the correct reporting of identifying data.

As

a restilt, about 95 percent of all tax

returns and claims for refund filed had the

correct identifying data.

Helping Other Countries

In 1963 the IRS, through the Tax Administration Advisory Services Division

(TAAS), in cooperation with the Agency

for International Development (AID), initiated a program to assist foreign

governments in modernizing their tax

administration systems. IRS advisors

have been assigned to thirty-seven countries, the Caribbean Community and the

Central American Secretariat for Economic

Integration for periods from two weeks to

several years. Funding is provided by AID,

the recipient countries or international

agencies.

This year long-term assistance programs

were completed in El Salvador, Uruguay.

Trinidad and Tobago and on-site projects

were initiated in Egypt, Liberia, Jordan,

21

the Northern Mariana Islands and the

Trust Territory of the Pacific Islands.

New projects are pending for El Salvador,

Sierra Leone and the Caribbean, Also,

diagnostic surveys were completed in

Nicaragua, Egypt and Jordan, and

a

follow-up assessment was made of the

Trinidad and Tobago project.

Since 1963 over 5,000 visitors from 127

countries have visited the Service for

orientation and study observation programs. This year 387 officials from 66

countries participated.

There was an increase in the number

of representatives from France, Italy, and

the United Kingdom who were interested

in IRS automation, organizational structure

and the voluntary compliance, self-assessment system, There were also frequent

exchange visits between Canadian National

Revenue and IRS officials.

The IRS presenteda seven week middle

management seminar in tax administration

for tax officials from six countries and

a

six-week orientation in automatic data

processing, sponsored by the Organization

for European Community Development.

Participants in Harvard's International Tax

Program, two International Monetary Fund

public finance groups, and

a group of high
22

level Nigerian civil servants, sponsored

by Brookings Institution, also visited the

IRS.

The IRS participated in the 26 member

country Inter-American Center of Tax

Administrators' (CIAT) Twelfth General

Assembly in Port of Spain, Trinidad and

Tobago, in May 1978 where the Commissioner made a presentation on, "Developing Tax Laws, Administrative Rules, and

Procedures for Resolving Taxpayers'

Disputes." Through CIAT, the IRS provided

automatic data processing and systems

analysis help to the Dominican Republic,

Honduras and Guatemala. The Director of

TAAS finished his term asa member of

CIAT's Executive Council and the Assistant

Commissioner (Data Services) served as a member of the ADP Advisory Committee.

State, Local and Campus

TAAS has coordinated 32 assignments to

10 states, Puerto Rico, Guam, the Virgin Islands and the University of Southern California. under the I ntergovern Mental Personnel Act of 1970 (IPA).

Earned Income Credit

The IRS continued to alert the public about

the Earned Income Credit (EIC), which

benefits low income taxpayers. With the

cooperation of other federal agencies, such

as the Departments of Health, Education

and Welfare, Agriculture and Labor, we

sent special notices to those considered

eligible for the Earned Income Credit.

Also, nearly 1 million notices were sent to

taxpayers who filed returns without claiming the EIC who possibly qualified according to their tax return information. As a

result, nearly 452,000 additional claims

forthe EIC were allowed.

During January1 through September 30,

approximately 5.6 million taxpayers

claimed the EIC fora total of approximately

$1.1 billion, averaging out to nearly $203

per taxpayer. Individuals who filed returns

only to claim the EIC received almost6

percent of these credits.

Enforcing

the Law

23
24

Examinations

Enforcing the Law

When returns are filed they are reviewed

by IRS employees and computers. They

are first checked manually for completeness and for such obvious errors as the

claiming ofa partial exemption or duplicate deductions. Then the IRS computers

check the taxpayer's arithmetic and pick

up other errors that may have escaped

manual detection.

How Returns Are Selected

The IRS examines returns to help ensurea

high degree of voluntary compliance.

The primary method used by the IRS in

selecting individual returns for examination

isa computer program of mathematical

formulas-the Discriminant Function

System (DIF)

- that measures the probability of error. Returns selected by the DIF

system are screened manually and those

confirmed as having the highest potential

of error are assigned for examination. New

DIF formulas for individual returns were

developed in 1978 and will be used for

returns filed in 1979. Since DIF Was

introduced in 1969 the number of individual

taxpayers whose examinations resulted in

no tax change has been reduced from 43

percent in 1968 to 24 percent indicating the

superiority of the DIF selection system over

manual selection for most returns,

Returns may also be selected for examination under the Taxpayer Compliance

Measurement Program,a system that

makesa random selection of returns

which isa statistical sample of the

classes of taxpayers being examined,

Examinations under this program are more

intensive because the results are used to

develop information required for research

purposes, such as the measurement of

compliance and to update DIF formulas.

Compliance measurement is an important

factor in determining audit coverage of

different classes of taxpayers.

Computer selection of returns is complemented by manual selection. For example,

if the IRS examines

a partnership return,

the returns of the partners also may be

examined. Returns of shareholders and

executives may be examined in connection

with the examination of their corporation.

Other returns may be selected based on

information documents filed by payers of

wages, dividends and interest. The IRS also

screens returns with adjusted gross income

above certain amounts and some returns

of taxpayers who submit claims for refund

or credit after filing returns.

Examination Results

The IRS examined 2,328,812 tax returns of

all types in 1978. Of those, 169,390 were

examined in service centers, compared to

150,730 last year, an increase of 12 percent. The remainder were examined in

district offices by revenue agents and tax

auditors.

Examinations conducted by revenue agents;

at the taxpayer's place of business or

residence covered 728,253 returns, an

increase of 27,450 returns or

4 percent

from last year. There were 1,431,169

returns examined by tax auditors under

office audit procedures

-a decrease of

86,507 returns or6 percent from last year.

Examination coverage of income, estate

and gift tax returns, excluding partnerships

and Forms 11 20S, was 2.28 percent compared to 2.46 percent in 1977. The coverage, including partnerships and Forms

11 20S, was 2.29 lowcent compared to

2.44 percent in 1977.

An accompanying table shows returns

examined in 1976, 1977 and 1978.

The Service's examination program

resulted in approximately $6.3 billion in

recommended additional tax and penalties.

The total recommendations include returns

subject to appeal by taxpayers to the

Appellate Division and the Tax Court.

25

Number of Returns Examined (Examination Divisions)

Fiscal years 1976-1978

Type of Return

Revenue Agents Total

19761 19771

10,740

1 97d

Income Tax Total

Individual

Fiduciary

Corporation

Partnership

SubchapterS Corporation

Estate and Gift Tax

Excise& Employment Tax

Tax Auditors Total

Income Tax Total

Individual

Fiduciary

Corporation

Partnership

SubchapterS Corporation

Estate and Gift Tax

Excise& Employment Tax

Service Center Total

Income Tax-Individual

Excise Tax

Grand Total

Income Tax Total

Individual

Fiduciary

Corporation

Partnership

SubchapterS Corporation

Estate and Gift Tax

Excise& Employment Tax

746,329 700,803 728,25i

530,445 490,611 505,87i

320,750 288,810 306,433

17,078 11,499

160,628 167,450 147,273

19,751

12,238

48.344

13,604 27,579

10.007 13.092

44,567 39,786

167,540 165,625 182,591

1,609,270 1,517,676 1,431,169

1,546,103 1,454,114 1,369,820

1,544,359 1,453,246 1,369,419

100

680

850

114

10,846

52,321

141

239

448

40

9,237

43

61

249

42

5.257

54,325 56,092

14Z667 150,730 169,390

136,645 150,730 169,390

6,022

2,498,266 Z369,209 2,328,812

Z213,193 Z095,455 2,045,086

2,001,754 1.892,786 1,845,242

17,178 10,881 11,542

161,308 167.689 147,340

20,601

12,352 10,047

59.190 53.804

14,052 27,828

45,043

13,134

225,883 219,950 238,683

Data mlitted f- P-iou, -ual,epon
26

27

Assessments totaled $5 billion, $4.1 billion

in tax and penalties and $913 million in

interest, In 1977 assessments were $3.4

billion in tax and penalties and $650 millior,

in interest. An accompanying table shows

the recommended additional tax and

penalties for 1976, 1977 and 1978.

Examiners are required to determinea

taxpayer's correct liability and to ensure

that taxpayers neither overstate nor

understate their liability. Service examinations disclosed overassessments on

132,600 returns, accounting for refunds of

$312 million. In 1977 there were 122,003

returns with refunds of $281 million.

Gross tax, penalties and Interest

resulting from direct enforcement

(in thousands of dollars)

Item 1977 1978

Additional tax, penalties

and interest

assessed, total 4,930,447 6,668,304

From examination of

tax returns, total 4,084,135 4,993,858

Income tax, total 3,390,508 4,262,434

Corporation 1,982,748 2,690,597

Individual and

fiduciary 1,407.760 1,571,836

Estate and gift tax 463,431 468,109

Employment tax

(including withheld

income tax) 173,150 203,288

Excise tax 57,047 60,028

From delinquent returns

secured by Collection

function 500,971 989,000

From delinquent returns

secured by Examination

function 345,341 685,44

Delinquent taxes

collected, total 3,068,673 3,013,963

Service Center Program

The IRS service center review program,

begun in 1972, generally is limited to the

verification or resolution of issues that can

be handled satisfactorily by service center

personnel through correspondence with

the taxpayer. There wefe 663,173 returns

checked by the Examination Division in

service centers in 1978 compared to

913,460 for 1977

-a 27 percent decrease.

Of those checked, 169,390 were examined,

while the remainder,a total of 493,783

returns were verified and corrected,

compared to 762,730 in the previous year,

The decrease occurred primarily because

of the continuing impact of the Tax Reform

Act of 1976, which allows certain errors to

be corrected during initial returns

processing.

Computer Assisted Examinations

The Service uses computer programs in

the examination of automated accounting

systems used by taxpayers. Both taxpayers

and the IRS save time and expense since

computer procedures takea traction of the

time required to do the same job manually.

Over 12,000 computer applications were

performed in 1978- an increase of 2,000

over 1977. The applications are done by

computer specialists who are experienced

revenue agents with intensive training in

computer systems, hardware, programming

language.s and examination techniques.

Coordinating Examinations

Financial institutions and utilities whose

gross assets exceed $1 billion are included in the Coordinated Examination

Program. Other corporations are included

in the program if gross assets exceed $250

million.

Coordinated examinations involve complex

accounting systems and the IRS uses

teams consisting of experienced revenue

agents, economists, computer specialists,

engineer agents, international and excise

tax examiners and employee plans specialists to examine these corporate returns.

Recommended Additional Tax and Penalties (Examination Divisions) (in millions of dollars)

Fiscal years 1976-1978

Type of Returns 19761 19771 1978

Revenue Agents Total

Income Tax Total

individual

Fiduciary

Corporation

Partnership

SubchapterS Corporations

Estate and Gift Tax

Excise& Employment Tax

Tax Auditors Total

Income Tax Total

Individual

Fiduciary

Corporation

Partnership

Subchapter

S Corporation

Estate and Gitt Tax

Excise& Employment Tax

Service Center Total

Income Tax-Individual

Excise Tax

Grand Total

Income Tax Total

individual

Fiduciary

Corporation

Parmership

Subchapter

S Corporation

Estate and Gift Tax

Excise& Employment Tax

4,538.5 4,453.3 5,643.3

3,710.7 3,579.0 4,569.4

953.3

- 1.066.3 1.1944

35.5 474

2.717.1 2.4555 3,299.2

4.7

603.1

224.7

418.8

384.0

383.118

15.0

19.8

222.7

222.1

.6

9,8

657.3

217.0

472.4

441.3

441.0

449

30.9

7036

370.1

466.8

"0.8

4408

1

12.5

18.6

131.5

131.5

5,180.0 5,057.2 6,260.2

4,316.8 4,151.8 5,160.3

1,558.5 1.638.8 1.785.3

35.6 47.5

2,717.9 2.455.7 3.299.2

4.7

618.1

245.1

9.8

669.8

235.6

7.1

18.9

150.2 -

150.2

44,9

30.9

710.9

389.0
28 29

At the end of 1978 there were 1300

corporations in this program, with 3.2

open years per corporation.

During 1978 the IRS continued its practice

of conducting industrywide examinations

of major companies in

a given industry.

Ten industries currently are being examined

by this approach and two more are in the

planning stage,

Tax Shelters

In recent years, there has been

a proliferation of limited partnership syndications

using high-leverage borrowing together

with special statutes to create tax deductions or losses that are lacking in economic

reality. Through artificial transactions,

questionable legal interpretations and

other gimmicks, large purported tax deductions are developed and marketed by promoters to high-bracket taxpayers. .

The IRS has been engaged in the vigorous

pursuit of abusive tax shelters since 1973,

with the establishment of

a program that

began with audits in the oil and gas industry. In 1974 and 1975, the program was

expanded to include real estate, farming

and motion picture shelters. Efforts have

included identifying tax shelter cases, educating agents to recognize tax shelter

issues, developing IRS position on key

issues and identifying cases for early

litigation.

An important element of the shelter program is the examination of partnership

returns, For 1978, audit coverage of partnership returns in general was doubled

from 1.5 percent to

3 percent. For partnership returns in the high-loss category. over

$25.000, audit coverage was approximately

24 percent. This, coupled with information

obtained from the (SEC) and state

agencies, and the use of computer programs to analyze. identify, and retain data

on partners and partnerships, gives the IRS

an improved capability to identify partnership returns which warrant examination.

To ensure compliance with the 1976 Tax

Reform Act, the tax shelter program has

been further expanded to include master

recordings, coal, books, lithographs and

other areas identified as potentially

abusive.

Joint Committee Review

The Intemal Revenue Code requires that all

income, estate, gift, private foundation and

pension plan tax refunds and credits in

excess of $200,000 be reported to the Joint

Committee on Internal Revenue Taxation.

This year 978 cases involving overassessments of $1.1 billion were reported to the

Joint Committee, as compared with 997

cases and $984 million in 1977.

Simultaneous Examinations

The IRS developed

a working arrangement with the United Kingdom Board of

Inland Revenue for simultaneous examinations of multinational taxpayers. This is the

second such arrangement between the

United States and another country

-the

first was with Canada in 1977.

Under this arrangement the United States

and the United Kingdom separately

examine taxpayers under their respective

jurisdictions. Before an audit begins

representatives of each country meet to

plan and coordinate the examination.

During each stage of the examination

information is exchanged in accordance

with the tax treaty between the countries.

Oil Industry

The IRS also implemented an oil industry

program by forming an oil taxation unit in

the Southwest regional office in Dallas.

Texas. Among the unit's principal functions

are making determinations and recommencalions on certain issues; negotiating letters of agreement on these issues; coordinating selected industry issues and

examination activities; developing pricing

methods and examination techniques

unique to the oii industry, and making

industry analyses.

Enrolled Agents

The Special Enrollment Examination

enables individuals who are not attorneys

or certified public accountants to demonAppeals

strate their competence in tax matters and

become enrolled to represent taxpayers

before the IRS.

The current examination, patterned after

the CPA examination, is divided into four

parts and emphasizes federal tax laws as

they apply to business operations: sole

proprietorships, partnerships and corporations, The questions focus on the tasks

enrolled agents must perform to file

com

plete lorms and returns and to

represent taxpayers before the Service.

Candidates are required to pass each part

though they may retain credit for any part

passed and need only retake those parts

failed. In 1978, 5,425 candidates filed applications,

compared to 5,090 in 1977.

The IRS encourages the resolution of

tax disputes through an administrative

appeals system rather than litigation.

A

taxpayer who disagrees with

6 proposed

change in tax fiability is entitled to

a

prompt, independent review of the case.

The appeals system is designed to minimize

inconvenience, expense and delay to the

taxpayer in resolving contested tax cases.

Before Oct. 2, 1978, district conference

staffs were the first level of appeal in tax

disputes between taxpayers and the IRS

on issues arising from the examination of

returns with

a second appeal conference

with the Appellate Division.

The two levels of appeals were independent

of each other and had different authority

and jurisdiction, Experience proved that this two-level appeals system was a costly

duplication both for the taxpayer and the

Service.

During 1978 all IRS appeals functions were

consolidated intoa single appeals body. Effective Oct. 2, 1978. these activities will be conducted by the Office of the Regional

Director of Appeals in each of the seven

IRS regions.

Proceedings in the appeals process are

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

a

certified public accountant or other advisor

enrolled to practice before the IRS. If the

disputed tax liability for each taxable year

involved is $2,500 or less, the taxpayer may

obtaina conference without filing

a written

protest.

In most cases the taxpayers and the district

conferee, or regional appeals officer,

reached mutually acceptable agreements,

so few cases went to trial. In the past 10

years. 97 percent of all disputed cases

were closed without trial. In 1978 the

appeals function disposed of 54,715 cases

by agreement.

Docketed or Not

Cases considered by the Appellate Division

fall into two broad categories: nondocketed

and docketed. Nondocketed cases are

those in which the taxpayer is protestinga

proposed action by an IRS District Director

involving additional taxes,

a refund disallowance or a rejection of an offer in

compromise. These cases made up about

54 percent of the Division's workload in

1978. Docketed cases involve situations

where taxpayers have filed

a petition fora

hearing before the United States Tax Court.

In 1978, 70 percent of nondocketed cases and 73 percent of docketed cases were

closed by the Division by agreement with

the taxpayer.

Other Appeal Options

Ifa tax dispute cannot be resolved at the

administrative appeals level, the taxpayer

is advised of additional appeal rights to the

courts.

If the disputed tax does not exceed $1.500

in any tax year,a simple procedure is

available under the U.S. Tax Court's small

case procedures that permits informal

hearings where taxpayers may present their

cases beforea special trial judge, Since

a

knowledge of courtroom proceedings is not

required, an inexpensive forum for the

taxpayer is provided. However, there is no

provision in the law for an appeal of the

Tax Court's decision under the small case procedure.
30

Criminal

investigation

If a taxpayer chooses to bypass the Tax

Court the tax deficiency may be paid and a

claim for refund filed within two years from

the date of payment, if the claim is denied

or no action is taken by the IRS on the

claim within six months the taxpayer may

file suit for a refund in either a United

States District Court or the Court of Claims.

A taxpayer may appeal an adverse decision

of the Tax Court or District Court to the

U.S. Circuit Court of Appeals having

jurisdiction. Adverse decisions of the

Court of Claims or a Circuit Court of

Appeals may be appealed to the U.S.

Supreme Court although not all such

appeals are accepted.

The Tax Court tried 1,742 cases, and the

United States District Courts and the

Cou

rt

of Claims tried 447 cases.

The Criminal Investigation Division is

responsible for investigating tax fraud and

other criminal violations of the tax laws.

The Division's enforcement activities are

divided into a General Program and the

Special Enforcement Program.

The General Program provides balanced

criminal tax enforcement for various types

of violations of the tax laws. Several,

enforcement efforts, such as the questionable refund program and the Illegal Tax

Protester Project, have been initiated to

correct specific abuses of the tax laws.

The Special Enforcement Program covers

the identification and investigation of

persons who derive substantial income

from illegal activities and violate the

tax laws. The program includes strike force

activities and a project on high level

narcotics financiers and traffickers. In

addition, the Criminal Investigation Division

this year again began investigating violations of the federal wagering tax laws.

The Division completed 8,713 investigations and recommended prosecution of

3,439 taxpayers. Grand juries indicted or

courts filed information on 1,724 taxpayers.

Prosecution was completed successfully in

1,414 cases. Taxpayers entered guilty pleas

in 1,056 cases, 133 pleaded nolo contendere; and 225 were convicted after trial.

Acquittals and dismissals totaled 70 and

119 respectively. Of the 1,446 taxpayers

sentenced during 1978, 681 or 47.1 percent

received jail sentences.

The accompanying table covers the results

of criminal action in tax fraud from 1974

to 1978.

Resufts of Criminal Action in Tax Fraud Cases

1974-1978

Action

1,062

1975 1976 1977 1978

1,046 977 1.229 1.189

1974

Number of Defendants

Plea of Guilty

nolo contendere

Convicted after trial 191

Acquitted 97

Nol-prossed or dismissed 115

Total Disposals 1,465

indictments & Informations 1,441

Percentage of Jail Sentences

to Total Sentenced 41.6

173 216 247 225

83 77 55 70

168 71

1,470 1,341

110 119

1,641 1,603

1,495 1,331 1,636 1,724

40.3 41.5 44,7 47.1

Organized Crime

The IRS cooperates in the fight against

organized crime by participating in the

Federal Organized Crime and Strike Forces Program. Strike force units located in 13 major cities are headed by attorneys from

the Department of Justice. The program

objective is to coordinate the combined forces of federal law enforcement agencies against organized crime. The IRS is

responsible for detecting criminal tax

violations and for ensuring that the income

from illegal activities is reported correctly and taxed. The IRS contributed 41 7 staff

years of direct investigative and examina- tion time to the strike force effort during

1978.

Underthe program, 107 individuals were convicted or pleaded guilty to tax charge

s

during the year and 582 prosecutions were

pending when the year ended. Since the

inception of the organized crime program

in 1966. some 941 organizad crime members and associates have been convicted

or have pleaded guilty to tax charges.

As part of its Special Enforcement Program, the Service continued to identify and investigate significant tax violations by high-level narcotic financiers and traffickers. During 1978 the IRS completed 323 criminal tax investigations, obtained 65 indictments and achieved 56 convictions of financiers and traffickers.

Collection The IRS has a Delinquency Prevention

Program to identify potentially delinquent

taxpayers and to assist them in maintaining compliance, and in preventing future

delinquencies.

Nonpayment of taxes withheld from employees' wages is the most serious delinquency problem facing the IRS. The Trust

Fund Compliance Program helps ensure

that chronically delinquent taxpayers adhere to more strict filing and paying requirements, such as monthly rather than

quarterly filing - and making deposits to

a special bank account. Violations of certain requirements of the law can lead to

criminal prosecution. Some 8300 taxpayers

31

were filing and paying their taxes monthly

and 3,936 of these also were required to

comply with the latest special bank

account provisions of the law, During the

first half of this year 75 taxpayers were

convicted of criminal violations for not

maintaining separate accounting for cer.

tain collected taxes.

The Service published "The Collection

Process (Employment Tax Accounts)," a

booklet explaining the rights and duties of

business taxpayers and the IRS in the

collection of employment taxes. The publication is sent to business taxpayers with

their second delinquency notice or

delivered by a Collection representative on

initial contact. A similar booklet, "The

Collection Process (Income Tax

Account)," designed for individual taxpayers, was first published in 1974.

Collection representatives will enter into

60-day payment agreements with delinquent income taxpayers provided the taxpayer: -is unable to pay in full immediately; - has no record of prior delinquencies; - has only one currently delinquent account; - has a delinquency of not

more than $5,000, and, - agrees to full

payment within 60 days.

If the taxpayer's financial condition indicates that immediate payment of an income tax in full would cause undue hardship. an IRS employee will help that

taxpayer prepare a form itemizing monthly

income and expenses to determine

whether a payment agreement based on

maximum ability to pay is in order. In

certain cases IRS can arrange through a

payroll agreement with the taxpayer's

employer to withhold and regularly pay to

IRS amounts deducted from wages.

Delinquent Accounts and Returns

The Collection Division disposed of over

2.3 million accounts receivable, including

some 342,000 notices sent taxpayers who

contacted IRS field offices to resolve the
32

International

Operations

delinquencies. Collection employees had

to initiate contact on the remaining 1.97

million delinquent accounts.

Slightly more than $3 billion in delinquent

taxes was collected, with over 1.3 million

delinquent return investigations and

108,000 returns compliance leads disposed

of by Collection personnel in 1978. Approximately one million delinquent returns

were secured, involving nearly $989 million

in additional assessments.

IRS foreign operations are the responsibility

of

I

he Office of International Operations

(010)

.

The Service maintains permanent

foreign posts and Revenue Service representatives at these stations are involved in

compliance and taxpayer assistance

activities and maintain cooperative contacts

with foreign tax agencies.

Since 010 established its first office in Paris

in 1948, the number of foreign posts staffed

by Revenue Service representatives has

increased to 14. Currently, posts in Bonn,

London, Paris, and Rome cover Western

Europe, and North Africa. Those in Mexico

City, Caracas, and Sao Paulo are responsible for Mexico, Central America and

South America, while Canada is serviced

from Ottawa. Offices in Tokyo, Manila,

Kuala Lumpur, and Sydney administer 010

activities in Japan, Southeast Asia.

Australia and New Zealand. A post in

Tehran covers the Middle East and the one

in Johannesburg services Africa south of

the Sahara.

This marked the 25th consecutive year that

taxpayers received tax assistance abroad.

Twenty-two assistors were detailed

abroad during the year, providing assistance in 145 cities in 80 foreign countries.

Approximately 151,000 taxpayers were

assisted overseas and several hundred

members of the armed forces attended

five military tax schools held overseas. The

armed forces participants then helped

thousands of military personnel prepare

their own tax returns.

Toll-free telephone assistance was

expanded to all U.S. taxpayers in Puerto

Rico during 1978. Further, the Service

entered into a tax administration agreement with Puerto Rico that along with

agreements with American Samoa, Guam

and the U.S. Virgin Islands allows the

exchange of taxpayer return information

and the development of mutual assistance

programs.

U.S. Taxation Abroad

010 is responsible for ensuring compliance

with federal tax laws by U.S. citizens

residing in foreign countries and by foreign

entities doing business in the U.S. It is also

concerned with U.S. businesses controlled

by foreign interests and assists in the

overseas examination of multinational

corporations.

010 examination and collection activities

take place primarily in the U.S. However,

010 does send revenue agents and tax

auditors abroad to examine the returns of

taxpayers living overseas. Those collection

cases that c

'

annot be settled through

correspondence are sent to the foreign

posts for personal contact.

010 also administers the social security

laws in U.S. Possessions and Puerto Rico

and the income tax laws for Puerto Rican

residents on income from sources outside

of Puerto Rico.

Treaties

Tax treaties with other countries are

designed to eliminate double taxation,

remove tax barriers to trade and investment

and help curb tax avoidance. The U.S. now

has income tax treaties with 39 countries

and estate tax treaties with 13 countries.

In 1978 meetings were held with tax officials

from several treaty countries to improve the

administration of the treaties involved.

These conferences improved working

arrangements for more effective exchanges

of information and for resolution of

recurring problems that arise from conflict

of U.S. and foreign tax laws.

A limited number of tax treaties provide for

mutual collection assistance and 010 is

playing an increasing role on a reciprocal

basis in collecting taxes of these treaty

partners from aliens in the U.S.

Employee

Plans/

Exempt

Organizations

The Office of Employee Plans and Exempt

Organizations (EP/EO) administers the

regulatory responsibilities of the Service

for employee benefit plans and tax exempt

organizations. EP/EO field staffs are

located primarily in the seven regional IRS

offices and 19 key districts.

As a result of the reorganization of the

IRS, the Office of the Assistant Regional

Commissioner (EP/EO) was eliminated

and its duties were transferred to the

Assistant Regional Commissioner (Examination). The reorganization also transferred

EP/EO's appeals procedures to the Office

of the Regional Director of Appeals.

The Employee Plans activity administers

the Employee Retirement Income Security

Act of 1974 (ERISA) with emphasis on

developing regulations and procedures.

IRS continues to coordinate the implementation of ERISA with the Department of

Labor and the Pension Benefit Guaranty

Corporation. As part of an effort by IRS to

reduce the reporting burdens placed on

taxpayers, plan sponsors and administrators are filing the 1977 annual return/

report (Form 5500 series) only with IRS. In

addition, a single computer system has

been developed to provide return and data

information needed by the three agencies.

A questionnaire mailout was developed in

1978 to survey employers who received

determination letters before the enactment

of ERISA but who failed to request a

determination letter for their plans to conform to ERISA's requirements. The survey

provides an estimate of the volume and

expected receipt dates of determination

letters and assists the Service in protecting

the rights and benefits of plan participants.

Taxpayers have been encouraged to take

advantage of IRS approved pattern, field

prototype, model, master and prototype

plans to reduce the expqnse and paperwork in complying with ERISA.

Some 7 regulations, 15 revenue rulings

and procedures, and 25 news releases

were issued, as well as 4,836 National

Office opinion letters on master and

prototype plans dealing with self employed

plans, corporate plans and individual

retirement accounts and annuities.

33

The IRS used an average of 854 field

professional positions to carry out

employee plans responsibilities. Advance

determination letters were issued on the

qualification of pension, profit-sharing and

other employee benefit plans. Examinations

were conducted to determine the qualification of plans in operation and to verity plan

contribution deductions. During the year,

214,672 determination letters were issued

on corporate and self-employed plans, an

increase of 40 percent from 1977. The

prohibited transactions activity closed 155

exemption cases, including 23 published

proposed and final exemptions covering

116 individual cases.

On Aug. 10, 1978, the President submitted

an ERISA Reorganization Plan to Congress,

which was approved Oct. 13, 1978. The

plan essentially will eliminate oVerlapping

jurisdiction and duplication of effort in the

administration of ERISA by separating the

authority of the Treasury and Labor

Departments.

The Exempt Organizations (EO) activity

determines the qualifications of organizations seeking tax-exempt and private

foundation status and examines returns to

ensure compliance with the law. The

number of active entities an the Exempt

Organizations Master File increased from

789,666 in 1977 to 810,048 in 1978.

During 1978, 4 regulations, 55 revenue

rulings and procedures, 264 technical

advice memoranda, 19 announcements,

7 news releases and 8 publications were

issued or revised. An average of 379 field

professional positions were used to exam.

ine 17,238 exempt organizations returns.

Also, 121 field professional positions and

97 National Office technical positions were

used for 49,687 applications, reapplications and requests for rulings on proposed

transactions from organizations seeking a

determination of tax-exempt status or of the

effect of organizational or operational

changes on their status.
34

The IRS initiateda nationwide examination

program on legislative and political

campaign activities conducted by labor

unions exempt under section 501 (c)(5) of

the Internal Revenue Code and trade

associations and professional organizations

exempt under section 501 (c)(6) of the

Code. The purpose of the program is to

determine the extent of compliance with

rules concerning the deductibility of dues

paid to such organizations. The program,

which will be completed during 1979, also

will provide basic tax related information

about the nature of these lobbying

activities. More than 1,500 organizations

were examined.

In August 1978a proposed revenue

procedure was published providing more

definitive guidelines to determine whether

certain private schools claiming tax

exemption operate ona racially nondiscriminatory basis as required by judicial

decisions. A system to identify exempt organization

returns that may warrant examination was

implemented in place of manual classification.

Basic principles and rules for uniform

interpretation and application of the federal

tax laws involving actuarial matters, are

provided by the EP/EO Actuarial Division,

which has 17 professional positions.

Managing the

Tax System

35

;I

11'
I

36

Planning and

Research

Managing the Tax System

During 1978 planning activities included

the preparation of the IRS Long-Range

Plan and the development of a single,

uniform structure for use in planning and

zero base budgeting. IRS research activities included testing improved work technologies, development of testimony and

other materials for presentation to congressional committees, analysis of pending

legislation and a number of statistical and

analytical projects to identify optimum

program designs and objectives.

Reorganization

During the past year, Planning and

Research provided guidance and supp

0

rt

for organizational studies within the Office

of Employee Plans and Exempt Organizations, the IRS Data Center, the Criminal

investigation Division, the IRS service centers and the Internal Security Division. A

comprehensive assessment of the IRS led

to significant revisions in operations, including a single level of taxpayer appeal

system and the combination of all IRS taxpayer service and information activities into

a single organization.

The Accounts, Collection and Taxpayer

Service (ACTS) organization has been

redesignated Taxpayer -Service and Returns

Processing. It now includes the taxpayer

information activity which was formerly

assigned to the Public Affairs Division. and

the Disclosure Division, formerly part c,

Compliance. The Collection Division from

the old ACTS organization has been

shifted to the Assistant Commissioner

(Compliance), consolidating all enforcement activities under a single authority.

Another change was the creation of a new

unit at the district level to provide centralized administrative and support services

Previously, field operating functions had

staffed and equipped their own support

units.

The IRS's Administration organization was

renamed "Resources Management." In

addition to retaining the traditional Administration activities, such as training, administrative servces, fiscal management, etc.,

Resources Management also is responsible

for the new district office Centralized

Services unit and for a new security function, formed to improve IRS safeguards of

tax returns and other taxpayer records. The

12 smallest IRS offices were streamlined,

eliminating some positions and drawing on

nearby larger districts for administrative

support and recordkeeping.

To more accurately describe their roles,

"Audit" and "Intelligence" Divisions have

~een redesignated as "Examination" and

Criminal Investigation."

Studies

As a part of IRS's efforts to simplify tax

returns and the tax filing process, a short

questionnaire was included in a randomly

selected sample of 1977 tax packages to

identify aspects of the tax returns, instructions and schedules that taxpayers find

difficult to understand, It also sought to

determine how taxpayers try to overcome

their returns preparation problems and

solicited suggestions for simplifying the

forms.

Among the 7,600 respondents, only 29

percent of 1040 filers and 11 percent of

1 040A filers said that they had difficulty in

understanding the tax returns or instructions. The tax computation portions of the

tax forms were cited as causing the most

difficulty. Most respondents said they COPE!

with their preparation problems by rereading the instructions. The survey

results suggested that further simplification

of the tax forms and instructions would not

significantly alter the proportion of respondents who seek professional assistance.

IRS contracted with the Opinion Research

Corporation of Ann Arbor, Mich., to determine the potential demand for free IRS

return preparation services. The results of

this survey will be used in a comprehensive

review of the Service's current returns

preparation policy.

The first IRS examination of the economic,

social and behavioral factors that promote

or discourage individual taxpayer compliance was undertaken in 1978. The Service

awarded an 18-month contract to Westat

Corporation of Rockville, Md., to conduct a

study to develop methods for measuring

the impact of factors affecting individual

taxpayer compliance. Once a working

methodology is developed, further research

will be conducted to apply the study findings to tax administration program evaluation and planning.

The IRS initiated a series of studies to

determine how well taxpayers understand

and comply with the approximately 85 provisions of law that permit the deferral of

certain tax consequences to subsequent

years. Some of the studies cover deferred

gains on sales of personal residences,

losses from activities not engaged in for

profit, reductions of stock cost basis and

the recapture of the new residence purchase credit if the residence is sold within

three years of purchase. Other areas include deferred gains on installment sales,

changes in accounting methods, at-risk

loss limitations for various business activities, and generation -ski pp* ing trusts. The

results of these studies will be used to

determine the need for a system to track

and better enforce individual taxpayer

obligations under the deferred tax provisions,

There are civil penalties in the tax law for

the violation of approximately 75 different

rules governing the filing of tax returns, the

timely payment of taxes due and reporting

federal tax liability, The IRS began a review

of these provisions to assess their fairness

effectiveness and administrability. Upon

completion of the study, scheduled for

Fiscal Year 1979

'

legislative recommendations may be developed. The study also

will consider proposals for improving the

administration of penalties and for monitoring their effectiveness.

Also during the year, a study was begun

on the much publicized "subterranean

economy" -income received by individ.

uals but not reported on tax returns. This

study is to evaluate all available estimates

of a "subterranean economy," to present

the IRS's best estimates of unreported in.

come and tax gaps, and to discuss the

findings in terms of future planning,

research and compliance efforts. It will be

completed during FY 1979.

37

Watching Legislation

Planning and Research is responsible for analyzing legislative proposals affecting

he IRS and for determining their adminis-

~rative implications. Once legislation is

enacted, a plan for implementing each

provision is developed and coordinated with those functions responsible for admin- istering the legislation. Approximately 55 bills were analyzed for their impact on IRS activities and implementation plans

were developed and carried out for 11 new public laws.

Productivity

A program was established to provide expanded incentives for promoting productivity at all IRS levels. The goal of this

program is to improve efficiency by

substituting investments in technology for

staff, particularly in work processing,

clerical and other routine operations. An

important part of the program is a productivity enhancement fund for financing

projects that improve procedures, techniques and equipment. IRS will prepare an

annual productivity plan. hold productivity

management seminars and improve work

measurement systems,
38

Measuring Compliance

The Taxpayer Compliance Measurement

Program (TCMP) isa continuing enforcement and research effort by which IRS

estimates the nature and extent of tax

law compliance. The TCMP data also

are used to develop computer routines for

selecting returns for examination. TCMP

data are derived from examinations of tax

returns selected on the basis of random

probability samples.

During 1978 work continued on the first

TCMP survey of fiduciary returns and on

the sixth survey of individual income tax

returns. Field examinations also were

initiated for the third corporate TCMP

survey. For the first time this survey was

expanded to include corporate returns filed

with no balance sheets, as well as those

returns with assets up to $10 million. Plans

are now being made to initiate the first

TCMP survey of employee benefit plans in

July 1979 anda second survey of tax

exempt organizations, beginning in January

1980.

Automating Examinations

For over five years, IRS has been operating a Computer Assisted Examination Program

(CAEP), under which specially trained

revenue agents examine the books

and records that large corporations maintain on magnetic tape or disk files. IRS

computer audit specialists have had to rely

extensively on the use of taxpayers'

computer equipment for developing and

debugging software routines used in

examinations.A 1978 study found that

CAEP productivity would be enhanced

su

bstantially by providing computer audit 'o

specialists with terminals at their postsI

duty to accessa time sharing system upon

which computer audit routines could be

developed and tested.A plan to provide

sucha capability is now under development.

Optical Scanning

Recent developments in electro-optical

technology have given rise to the possibility

of using scanning equipment to record the

data reported by taxpayers on their returns.

During the past two years IRS tested the

performance of this technology on machine

prepared tax documents, such as Forms

1099 and 941, to determine what changes

must be made in IRS forms and procedures before optical character recognition

(OCR) can be used. Meanwhile, plans are

being made to test the feasibility of OCR

processing of Forms 1040A. During 1979

IRS also plans to conducta joint test with

the Treasury Department on the use of

OCR to process Federal Tax Deposit forms

that combine both machine and handwritten input.

Federal-State Test

The IRS is working with the National

Association of Tax Administrators to promote the filing of Forms 1099 and 1087

information documents on computer tape.

Under the test program-which will begin

in Calendar Year 1979 using Tax Year 197E.

information filed principally by institutional

taxpayers in California, Minnesota, and

New York- IRS will process the magnetic tapes, retaining information for

federal tax purposes and simultaneously

producing information for use by the states

in whatever medium and format they

require. This arrangement will reduce

recordkeeping and filing requirements for

taxpayers and accelerate the use of more

efficient electronic media by both the I

RS and state tax administrations. If the

lest is successful it will bea model fora

similar arrangement among institutional

filers. the IRS, the Social Security Administrail. on, and the states in handling information from the Form W-2, withholding

statement.

Publishing Statistics

The annual Statistics of Income (Sol)

publications provide the public and the

government witha variety of data reported

39

on income tax returns without violating

taxpayers' rights to privacy. Nearly all of

the data are estimates based on representative samples of returns.

Preliminary Sol publications in 1978

covered individual income tax returns for

1976 and corporation and business returns

for 1975. As required by the Tax Reform

Act of 1976, the 1976 report for individuals

included statistics on the tax liability of

persons with high total income computed

by using several different concepts.

Detailed statistics for 1975 and 1976 also

were provided to Treasury's Office of Tax

Analysis fora special publication on high

income taxpayers.

An SO] supplemental report on individual

income tax returns also was published,

providing certain 1974 information for each

county and for the 125 largest metropolitan

areas.

Selected data from the SOI reports are

shown in the accompanying tables.

Special statistical studies done for Treasury

included information on sales of capital

assets reported on individual income tax

returns, the New Jobs Tax Credit introduced

by the Tax Reduction and Simplification

Act of 1977 and the foreign tax credit and

tax exempt income earned abroad as

reported on individual income tax returns.

Data also were provided to Treasury for

reports to Congress on Domestic International Sales Corporations, U.S, taxpayers

that participated in international boycotts

and the revised system of taxing domestic

corporations on their operations in Puerto

Rico and U,S. possessions.

Statistics of Income publications may be

obtained from the Superintendent of Documents, U.S. Government Printing Office,

Washington, D.C. 20402.

Receipts and Profits Re~orted by Businesses, Income Year 1975

[All figures are estimates based on samples-number of businesses are in thousands- money amounts are in millions of dollars]

Nuorber of banainesses Total receipts Not Income (law deficit)

Sole Sole

i

Active propirl- Active Active Pmprl- Active Active propril- Active corpal etor- partner. coni otor- panner. otor- parther. Industry rations ships ships rations ships ships la~tlropn's ships ships

Total 12.024 10,882 1,073 3.198,627 339,221 148.418 142,636 44,611 7.738

Alficulture.

ishing

forestry, and 56 3.367 123 28,119 69.290 13,326 747 5.587 896

Mining 14 56 16 65.909 3.531 4.242 23.574 283 -500

Construction 191 892 61 146,955 31,013 12.572 2,236 4~389 794

Manufacturing 217

2 22 29 1,296.359 8.679 6.949 68406 1,040 341

Transportation and public 80

-

utilities 355 17 243,480 10,009 2.503 10.099 1.261 -25

Wholesale and retail trade 614 2.193 193 969,938 148.328 45,641 2248-9 9.860 2.659

Finance. insurance. and 411 744 434 315,795 11,138 32,406-11.663 3.762 -3,652 real estate

Se-ces 436 3.034 199 131.377 55.997 30.765 3.396 18,385 7.224

Nature of business not

2 19 (1) 692 238 14 allocable _~3 44

1

Note. income yea, 1975 Go-s 1-Infing nallods emied july 1975 mlolgl, June 1976 Dalai may not add to toluis a. 10 r.u,d,,g I Fzysolo proprel0lahips rep-ons net taofil eooriW on Scredulds C and F of a-ld,10 income to, al,me 10, d-olin-pe dratname

,,,,,a

Includes

h-me.

appro,,,al,iy

and or -p-i-a apeta,-. I., me neasl 0811, 11-able -orn bal.l. a, theianng to,, and sod-1 dla,ct,ns 38 300 consolidated returns ,in 132A00 tiu-ca-er, a

Ldt,r; than 500
40

Individual Income Tax Returns: Number of Returns, Sources ofIncome,

and itemized Deductions, 1972-1976

JAII figures are estimates based on samples]

Itern

A. Number of returns

Total Forms 1040 and 1040A

Taxable

Nontaxable

Returns with itemized

deductions, total

Taxable

Nontaxable

Returns with standard

deductions, total'

Taxable

Nontaxable'.

B. Sources of income

Adjusted gross income less

defil total

Salaries and wages

Business, farm, and profession 38,559 45,330 44.043 42,985

Dividends in adjusted gross

income

Interest received

Partnership

Nei capital gains

All other income

C. itemized deductions

itemized deductions, total

Taxes

Interest paid

Contributions

Medical and dental expense

Other deductions

Income year

1972 1973 1974 1975 1976

(Thousands)

77,573 80,693 83,340 82,229 84,670

60,869 64.267 67.335 61.491 64,421

16,704 16,425 16,005 20,739 20~249

26,980 28,047 29,564 26,074 25,951

25,709 26,868 28,340 24,522 24.594

1,272 1,180 1,225 1,552 1.357

50,592 52,645 53,776 56,155 58,719

35,161 37,400 38,996 36,969 39,821

15,432 15.246 14,780 19,186 18.898

(Million dollars)

745,975 827,148 905,523 947,785 1,03,896

622,599 687,179 758,629 795,399 880,999

.47~955

16,794 18.734 20,888 21.892 24.462

27,400 32,174 39,543 43,434 48,588

11,058 11,159 11.013 10,751 11,682

17,075 16,672 13,470 14,072 18.562

12,490 15.900 17,937 19,252 21.648

(Million dollars)

96,665 107,035 119,406 122,261 133,891

36,166 39,374 43,321 44.141 49,610

27,347 31,942 37,369 38,885 43,415

13,208 13,896 14.851 15,393 16,792

10,100 10,722 11,455 11,422 12,160

9,844 11,101 12,410 12,420 11.914

Not, Rot, nscasof,ed as ta.fitol- mo-0mc- ta-tor c,eo,, or adds-al-to, ta. rnate,ences(mmm-,-)-bm

Inct

Data,, mav not add to totals d,P io-ndmi;

udes returns win no adl gross mcome

41

Tax Models

Developed in the early 1960's to meet

Treasury's need for timely estimates of the

impact and revenue effects of proposed tax

legislation, tax models also have proved to

be valuable tools for economic planning,

Five basic models - individuals, corporations, sole proprietors hips, partnerships,

and estates - are revised each year to

reflect changing levels and patterns of

income. Each model consists of generalized

manipulation and table-generating computer programs, used with Statistics of

income files containing the most current

available year's tax return data.

Projecting Returns Filed

Planning throughout IRS is based on

projections of the number of returns to

be filed. This requires workload projections

Selected Types of Returns Filed in 1977 and Projected for

1978, 1979, 1980, and 1985, by Calendar Year

(Returns in thousands)

Type of return

Total Primary returns

and supplementals

Total Primary returns

Individual total

Form 1040A

Form 1040

Other'

Individual declaration

Fiduciary

Projected Percent

Esti- change

Actual mated 1977-

1977 1978 1979 1980 1985 1985

133,796 136,945 141,739 145,426 163,348 22.1

127.768 130,261 134,512 137.469 150,817 18.1

85.753 87,710 91,224 93,600 104,077 21.4

29,028 34,168 34,797 35,421 38,269 31.8

56,596 53,426 56,306 58,057 65,672 16.0

129 116 121 122 136 5.4

8,133 8.052 8,181 8,349 8.870 9.1

1,676 1,821 1,939 2,052 2,717 62.1

Partnership 1,166 1,187 1.210 1,235 1,348 15.6

Corporal 2.273

Estate 222

Gift 349

2.348 2,408 2,471 2.812 23.7

152 146 139 151 -32.0

237 257 278 400 14.6

Employmeril 25,078 25,612 25,931 26.093 27,011

Exempt organizations 543

Employee planss 1,098

Alcohol, Tobacco and

Firearms tell 563

Excise 1 914

Total Supplemental

docurnel 6,028

nonc

IIWO:

a

Fo,ms 11002100 NIR12

.

01

1114pOeFcRa,

[.

1

INI

200SPS,

1

1 02400C I.Sa,d

I 11

042

,l. H 1120-POL-d 1120S

Form, 9so 940PR 941 94 1 E 941 PH 94 1 S3. 941 V. ,~2

942PH 943,9~3PR. 6i.I and CT!2

includes Forms l990-C. 990- PF, 990. T. 4 720. and 5227

7.7

526 541 557 63B 17.5

1,126 1.173 1.187 1.261 14.8

567 567 566 562 -0.2

923 935 942 970 6.1

6,684 7,227 7,957 12,531 107.9

~linc~ll~do.s~FFI.,,-s~575080.15~5O~07CO5a~~7SW500

4K707. M8 and

Tobacco

InclUdes Forms 11 B. 11C. 720. 720M. 730. 2290. and 4638

-Incil Forms 104OX, I 1 20X. 2686 4868, 7004. 7005, 2438.

990AR. 5300 Solles 4578 amb 5329
42

for the entire United States as well as for

service center areas, regions and districts.

Special projections are made for research

purposes. Work planning projections are

updated each year to incorporate changes

in the economic and demographic outlook

as well as the effects of tax law changes

and filing patterns.

The number of primary returns and supplemental documents is expected to grow

from 133.8 million in 1977 to 163.3 million

in 1985. This increase of 22.1 percent

reflects the expected growth in population

and economic activity.

Resources Resources Management

-redesignated

Management from Administration under the reorganization - is responsible for fiscal management, personnel, facilities management.

training, centralized servic3s, employment

policy, security standards and evaluation

and management improvement.

Security A Security Standards and Evaluation

Division was established, consolidating

responsibilities that previously were placed

in several different organizations. The

Division is responsible fora comprehensive Servicewide security program, The

program provides reasonable protection

for employees and protection against loss,

destruction or compromise of tax and other

protected information, facilities and

property, data systems and other assets.

Equal Employment

Total full time regular employment from

July 1977 through July 1978 increased by

2.9 percent, while the number of women

increased by 5.9 percent and the number

of minorities by 7.8 percent,

Women and minorities made gains in 19

of the 20 most populous IRS occupations,

including revenue agent, revenue officer,

tax auditor, attorney and criminal investigator. The number of women and minorities

at grades GS-13 and above also increased - women from 3.8 percent to 4.5 percent

and minorities in these positions from 5.4

percent to 5.8 percent- but more needs

to be done.

Training to instruct special emphasis

coordinators in programs for federal

women, Hispanic employment, upward

mobility and Blacks was developed and

piloted. Also, about 100 EEO counselors

received training in handling class discrimination complaints.

During the year the Service observed

Black History Week as well as Hispanic

Heritage Week and Women in Government

Month.

Labor-Management

In mid-1977 the Assistant Secretary of

Labor for Labor Management Relations

ruled in favor of the National Treasury

Employees Union's petition to consolidate

'heir eleven center bargaining units into

two nationwide units. One unit consists of

all service centers

- except Andover-the

Data Center and the National Computer

Center. The second unit consists of all

districts- except Anchorage- and all

regional offices- except the North-Atlantic

appellate function and the Southeast

Regional Office- and the National Office.

Asa result of this consolidation the IRS

revised its labor relations case handling

procedures, strengthened its basic labor

relations training courses to includea

complete package in discipline, adverse

actions and appeals, and improved its

communications between the field and the

National Office.

There has been an increase in the Unfair

Labor Practice caseload along witha

continued upward trend in grievance

activity. The IRS republished the agency

grievance procedure in handbook form

and substantially revised its grievance

examiner training course.

I

Paraprofessional Savings

The IRS has substituted approximately

1,400 paraprofessional positions for

higher graded professional and technical

positions over the past several years. This

was done by splitting off the less complex

work present in higher graded professional

and technical positions and assigning it to

paraprofessional employees at lower

grades. This resulted in

a savings of

approximately $8 million in salary and

benefit costs. In addition to the recurring

dollar savings, paraprofessional posi I

ion

s

also increased the effectiveness and

productivity of the IRS's professional

and technical employees enabling them to

spend more time on higher level work.

Paraprofessional positions have been

established in Examination, Collection,

Inspection, Criminal Investigation, and

Resources Management activities. Similar

positions are being considered for other

occupational areas.

Jobs for the Handicapped

The number of handicapped employees in

IRS increased from 1,667 in 1977 to 1,701

in 1978. The IRS nominee for Outstanding

Federal Handicapped Employee of the Year

43

was William J. Boucher,

a tax auditor from

the Austin District. Mr. Boucher also was

selected as the Treasury Department's

nominee for Outstanding Federal Handicapped Employee of the Year.

Awards for Incentive

The IRS Incentive Awards Program

received special attention in 1978 with

many employees receiving recognition for

their outstanding contributions to IRS

-

including two Meritorious Service Awards.

fifteen Commissioner's Awards, five

Special Achievement Awards of $1,000 or

more and two special recognition awards

for exposing bribery schemes.

Also, several employees received

recognition from organizations outside of

IRS. Deputy Commissioner William

E. Williams was the Department of the

Treasury nominee for the 1977 Roger W.

Jones Award for Executive Leadership.

Sixty-five employees received Presidential

Letters of Recognition for employee

contributions that resulted in tangible

benefits of $5,000 or more. '

Linda Molyneux of the Fresno Service

Center was presented the 1977 John E,

Fogarty Public Personnef Award for her

outstanding efforts toward the hiring of the

handicapped. This award, the highest given

by the President's Committee on Employ.

ment of the Handicapped, was made on

June 13, 1978, at the International Assock

at'ion of Personnel Employment Security

Convention in St. Louis.

Yolanda Carrillo of the Fresno Service

Center has had an exceptional year

-

beginning with an award of $1,285 for

a

suggestion witha tangible benefit of

$184,000. In addition to the cash award,

Ms. Carrillo's accomplishment broughta

Presidential Leiter of Recognition and made

her one of eleven recipients of the 1977

Presidential Management Improvement

Award. This award was presented in the

White House Rose Garden on May 23,

1978, by the President.
44

Internal Revenue Manual

The Service adopted

a new system to

compose, print and distribute its internal

operating procedures in the Internal

Revenue Manual. Using electronic technology, accurate copy is produced in

6"x 9" format at less cost and in less time

than with the old method. Additional

services, provided under

a single contract,

include filling orders for current parts or

handbooks, comprehensive topical indexes

and management summaries of recent

functional or operational changes to any

part of the Manual.

Training

Consistent with President Carter's commitment to improve the quality of public

correspondence, nearly 700 IRS employees

attended various workshops that stressed

clarity and responsiveness in writing.

Four different writing workshops are

offered to accommodate employee needs.

The training ranges from

8 to 40 hours of

classroom work, plus some self-.study

exercises. It is designed for the executive,

the legal or technical originator, the ieviewer, and those persons needing

refresher courses.

The Coordinated Examination Training

Program was developed and piloted in

early 1978. This course will providea cadre

of revenue agent specialists who can

determine areas of accounting systems to

be isolated for more thorough auditing and

reducing or eliminating the time expended

on nonproductive auditing.

This training also will provide

a greater

degree of uniformity and consistency in

resolving tax issues, simplify decisions on

taxability and eliminate duplication of

effort. Some 325 senior agents are

expected to be trained forthe program in

each future year.

The IRS continued to conduct basic

training for the Criminal Investigation

Division at the Federal Law Enforcement

Training Center at Glynco, Ga.

Several new programs were produced to

support the Criminal Investigation Division - new on-the-job training for recruit

special agents was tested, all special

agents received review training in the

implication of the new disclosure provision

of the law anda TV tape test, similar to

the national drivers' exam, was used.

A

wagering tax course also was written and

piloted this year. I A three-day program to train examination

employees-revenue agents, tax auditors,

and estate tax attorneys

-for detailed

identification and examination of abusive

tax shelters was developed this year to take

"a vigorous position on marginal tax

shelters and loopholes of one kind or

another."

The training provides examiners with the

general tools needed to recognize the

abusive elements of

a tax shelter regardless of its business nature or reporting

form.

Tax shelter training is now an integral part

of all new examiners' training courses,

This training also is given to incumbent

employees as part of the update courses

anda limited partnership portion serves to

reinforce previous tax shelter training.

The IRS trained approximately 4,000 data

transcribers using

a 60-hour training

program. In previous years the direct-data

entry training program wAs 80 hours.

By using this new, shorter training program

the IRS saved approximately $404,000 in

training, administrative and instructor costs.

The reduced amount of training had no

adverse effect on the trainees' ability to

reach the job standards for speed and

accuracy.

Instructing Others

More than 100 employees of state and local

governments participated in IRS training

activities.

Financial investigative courses were held

for the Maricopa County, Ariz., sheriff's

association to train 20 participants from

various local police and attorney general

offices and for 48 members of the

Pennsylvania Crime Commission.

Students in the five-week IRS special agent

course included revenue employees from

the Colorado Department of Revenue,

the New Jersey Department of Law and

Safety, and the Philippines, Dallas, Tex.,

and Phoenix, Ariz., governments,

Participants in various revenue agent

training courses included employees of

the government of American Somoa; the

45

states of Alaska, New York, Maine, and

Oregon; and the cities of Milwaukee, Wis.

and St. Paul, Minn. Special investigation

employees of the St, Louis, Mo,, Police

Department attended our 6-day wagering

tax course. Instructor training and course

assistance was provided to the Idaho State

Tax Commission to enable it to train

employees in auditing techniques.

Career Counseling

Career Counseling Center opened at the

IRS National Office to enhance IRS Equal

Employment Opportunity efforts by helping

supervisors and employees in setting

realistic goals and devising courses of

action in career growth planning.

The center providesa wide range of

services, including formal consultations

and diagnostic testing. skills assessment

and other guidance given bya team of

counseling specialists.

Logistics Support

IRS continued its efforts to eliminate

unnecessary internal reporting, canceling

21 reports in 1978 for annual savings of

approximately $406,000.

The IRS conducted an extensive study of

the taxpayer assistance Toll-Free Tele.

phone System (TFTS) to determine if the

efficiency of that operation could be

improved. The study identified the best o

cations and the optimum number of sites

locate the TFTS answering operations,

New Procedures were developed for

the telephone circuitry used in the toll-free

system to providea better balance between

incoming circuits and answering positions.

The initial result of these efforts was

a

$2 million reduction in the telecommunications cost for the toll-free program. C ommumcations costs were also reduced

by new prqredures fortransmission of

written records, such as facsimile, teletype, and express mail, and more control

over commercial long distance and
46

Data

Services

Federal Telecommunications System

usage. These efforts saved approximately

$1.6 million.

An internal management reporting system

has helped the IRS to control its space

inventory and costs. Approximately

$500,000 was saved by releasing space,

using space savings techniques and

closely reviewing utility and service

charges. Multi pie-occupancy work stations and open office planning concepts

are also resulting in space savings

During 1978 the IRS reduced its

regional and district use of office space 4 sq. ft. per person saving 221,000 sq. ft,

or approximately $1.7 million.

The IRS continued to rate as one of the

top federal agencies in occupational safety

and health. In Calendar Year 1977, the

IRS reduced both disabling injuries and

motor vehicle accidents ata time when

most agencies realized substantial

increases in rates. The IRS had

a rate of 3.4

disabling employee injuries per million staff

hours worked. Service employees drove 119

million miles on official business with 671

accidents. 72 less than in Calendar Year

1976. The accident frequency rate

decreased from 5.8 to 5.6 accidents per

million miles driven.

By using unique service center ZIP codes

for the 1978 filing season, the IRS reduced

the average transit time of mail from the

taxpayer to the service centers by one day.

Because Treasury has use of the tax

revenue one day earlier, the government

saves some $5 million in interest annually.

And, records disposal resulted in the

release of space and equipment valued at

$3,809,000.A total of 208.273 cubic feet of

records was destroyed and 592,570 cubic

feet of records were retired to Federal

Records Centers.

The Office of Assistant Commissioner

(Data Services) is responsible for developing, implementing and evaluating

computer systems, programs and hardware requirements. Originally consisting of

the Service and Design Division, the Systems Programming Division and the

Systems Analysis Division and two

computer facilities- the National Computer Center and the Data Center - it now

also includes the Systems Development

office and the Planning and Control staff.

Handling Payments

IRS is installinga new remittance processing system (RPS) for quicker and more

efficient handling of tax payments.

RIPS processes the remittance, encodes

the source document with an audit trail

and prepares documantation for forwarding to the bank with the checks. It also

forwards transactions to the appropriate

master file to indicate receipt of the

remittances before the source documents

are processed, aiding in answering

taxpayer inquiries.

Case Reporting A nationwide system was established to

meet inventory management and case

control needs of Criminal Investigation

Division field managers and to provide

senior management with important statistical data and reports.

The file itself contains complete information

on all Criminal Investigation Division cases

and projects. Each service center has its

own data base that can be "called up" by

the districts serviced by it. Research capabilities also are provided and a series of

reports are generated in the service

centers every week.

Automated Information

Control of partnership returns on the Audit

Information Management System (AIMS)

was implemented ona test basis in Sall Lake City District Office and Ogden Service Center on July 1, 1978.

Under the system the examiner of the

partnership return is able to requisition an

unlimited number of partner returns for

shipment and examination in the partner's district office. The examiner of the partnership return receives a monthly report

showing all partners established on the

data base. Each district office receives

a

cumulated monthly report showing Income.

adjustments applied to

a partner's return

in the district, resulting from partnership

examination.

National Computer Center

Computerized master file.operations of

the integrated tax administration system is

performed at the National Computer Center

in Martinsburg, W. Va. Eight large computers and three computerized microfilm

systems are used fortheindividual, business, exempt organization, employee

plans and individual retirement account

master files for the nation.

The Computer Center operates 24 hours

a

day, seven daysa week and maintains

reciprocal accounting with each of the ten

service centers. Input of data to the

Cc in

puter Center- such as tax returns, tax

payments, and adjustments- is primarily

on magnetic tape shipped from the service

47

centers and other organizations by air, The

output, also on magnetic tape, contains

data for printing notices

- such as bills,

refund checks, etc.- and is air shipped to

the service centers and other federal and

state agencies. During the year the ComPuter Center received more than 84,000

input tapes and shipped more than 82,000

output tapes.

As of Augus 1 1978 there were 121,063

magnetic tapes in the Computer Center

library, with the Individual Master File

containing 111,028,298 taxpayer accounts;

the Business Master File, 17,106,712

accounts; the Exempt Organization Master

File, 1,007,496 accounts; the Employee

Plans Master File, 1.129,694 accounts and

the Individual Retirement Account Master

File, 2,876,309 accounts.

Data Center

The Data Center in Detroit, Mich., is

responsible for non-master file data processing operations for the IRS.

In 1978a new system was selected to

replace the current Computer systems.

Installation of the replacement system is

scheduled to take place in early Calendar

Year 1979 with testing and acceptance

expected by the middle of the. year.

Two new software systems were installed

to monitor and report computer use and to control development of new

systems and produce reports of personnel

utilization.

The Data Center is processing up to one

million employee benefit plan forms for the Department of Labor this filing season,

with work started in late 1978. Processing

involves the filming of returns with special

cameras and producing output on micro. fiche equipment for shipment to service

centers, the National Archives and the Department of Labor. I
48

Technical The IRS tax ruling program consists of

Activities letter rulings, technical advice and

published revenue rulings. During the year

the IRS acted on 25,357 requests for tax

rulings and technical advice, and issued

538 revenue rulings and revenue

procedures. A letter ruling is

a written statement

issued toa taxpayer by the National Office

interpreting and applying tax law toa

specific set of facts, Sucha ruling provides

guidance concerning the tax effects ofa

proposed transaction. Letter rulings are not

precedents and may not be relied upon

by taxpayers other than the recipient.

Technical advice provides guidance on the

proper application of the tax laws to

specific facts issued by the National

Office at the request ofa district office in

connection with the audit ofa taxpayer's

return or claim for refund or credit.

Frequently, the District Director's request is

made at the suggestion ofa taxpayer that

technical advice be sought. A revenue ruling is an interpretation of the

tax laws issued by the National Office and

published in the Intemal Revenue Bulletin

to inform and guide taxpayers, practitioners and IRS personnel.

Tax Shelter Rulings

During 1978, the Service continued an

active program of publishing revenue

rulings to answer significant issues with

respect to tax shelters and other artificial

tax devices. The goals of this program are

to provide technical guidance to taxpayers

and to IRS personnel on the specific

issues presented and to increase public

awareness that the IRS will carefully

scrutinize tax-motivated transactions.A

highlight of this program was the publication on Oct. 31, 1977, of nine revenue

rulings addressinga number of current

tax shelter issues.

Art Advisory Panel

The Art Advisory Panel held three meetings

at the National Office during its lenth

anniversary. Since 1968 this unpaid,

twelve-member panel of art experts-

museum directors, curators, scholars and

Requests for Tax Rulings and Technical Advice (Closings) 1978

Subject

Total

Administrative Provisions

Changes in Accounting Methods

Changes in Accounting Periods

Earnings and Profits Determinations

Employment and Self-Employment Taxes

Engineering Questions

Estate and Gift Taxes

Excise Taxes

Taxpayers' Field

Total Requests Requests

25,357 24,705 652

63 50 13

6,823 6,823

10.568 10,568

1,073 1,073

390 320 70

173 121 52

415 349 66

165 94 71

dealers- has helped IRS to review

taxpayers' appraisals and to determine the

value of works of art donated to charity

for gift or estate tax purposes.

All appraisals of works of art claimed at

$20,000 or more in audited tax returns

must be referred to the National Office for

review. The claimed value of the average

item referred to the panel recently has

been close to $100.000. Nearly half of all

reviewed appraisals are found to be

unacceptable.

The panel reviewed appraisals on 702

works of art with taxpayer claimed values

amounling to $67 million this year, resulting

in valuation adjustments of $12 million.

During its ten years of operation, the panel

has reviewed appraisals with claimed

values of $276 million, which resulted in

valuation adjustments of $75 million.

Internal Revenue Bulletin

The weekly Internal Revenue Bulletin

announces official rulings and procedures

of IRS and publishes Treasury Decisions,

Executive Orders, tax conventions, legislation, court decisions and other items of

general interest. Bulletin contents of

a

permanent nature are consolidated semlannually into Cumulative Bulletins, with

weekly and semiannual issues distributed

within IRS and available to the public

through the Superintendent of Documents,

U.S. Government Printing Office, Washington, D.C. 20402.

During 1978 the Bulletin included 499

revenue rulings, 39 revenue procedures, 8 Public Laws relating to Internal Revenue

matters and 10 committee reports, 58

Treasury Decisions containing new or

amended regulations, 50 delegation orders, 4 Treasury Department Orders, 14

notices of suspension and disbarment

from practice before the IRS, 268

announcements of general interest and

8

court decisions.

The Bulletin Index-Digest System, with

current supplements. aids in researching

material published in the Bulletin after

49

Revenue Rulings and Revenue

Procedures Published in 1978

1952. The accompanying table shows

a

breakout of the types of revenue rulings

and revenue procedures published in 1978.

Making Rulings Public

The Tax Reform Act of 1976 provided that

IRS rulings and'technical advice generally

be

0

pehed to public inspection after the

deletion of the taxpayer's identity, trade

secrets and confidential commercial and

financial information.

Rulings and technical advice requested

after Oct. 31, 1976, generally are made

available within 90 days after they are

issued to taxpayers. Of the approximately

80,000 issued in answer to requests made

before Nov. 1, 1976, 25.000 were made

available to the public in 1978. The

remaining rulings will be opened for public inspection in 1979.

Publishing Services developed

a

computer-based system to produce microfiche indexes for the release of letter rulings and Code section indexes for the

weekly release of current rulings. Nine

monthly and cumulative indexes were

developed to provide the ruling information in various formats based on user

needs.
I

50

Inspection The Inspection Service's internal audit and

security programs aid IRS managers in

maintaining the highest levels of efficiency

and integrity.

Internal Audit

The Internal Audit Division independently

appraises the operations of the IRS to

measure the extent of compliance with

established management policies and to

determine whether procedures are in

accordance with law and regulations.

Controls are reviewed in all IRS activities

to ensure that both taxpayers' and the

government's rights are protected and that

operations are carried out efficiently,

effectively and with integrity.

Internal Audit reviews operations that have

widespread impact on the IRS or that

are considered high risk. The review of

controls for safeguarding tax information

and assuring fair and equitable treatment

of taxpayers also is stressed.

To improve the efficiency of IRS

operations, national coordinated audits are

being used more often to provide uniform

coverage in several offices and to evaluate

the operation ofa program better ona

nationwide basis. These audits provide

managers witha better perspective of their

operations, pefmit nationwide corrective

action if nebessary and require less staff.

Abstracts of Internal Audit findings are

prepared and distributed to Service officials

nationwide to help identify operational

areas that may need increased management attention.

Internal Audit issued 241 reports to IRS

managers during the fiscal year. Management actions on these problems resulted

in better service to taxpayers, strengthened

controls and improved operations. In

addition, response to Internal Audit findings

resulted in measurable savings and addiional revenue estimated to total $157

million.

Maintaining Integrity

Internal Audit gives priority to the detection

of fraud, embezzlement or other wrongdoing on the part of IRS employees.

During the year Internal Audit informed the

Internal Security Division of possible

breaches of integrity by 161 employees

and 38 other individuals. Of the investigations begun into these possible breaches

97 investigations were completed in 1978.

Asa result, 84 employees and8 others

were cleared of allegations of improprieties, while actions were taken or were

pending against 1 employee and4 others.

Internal Security

The Internal Security Division protects the

integrity of the IRS by investigating

high risk areas and alerting managers and

employees to integrity hazards.

The Division investigates complaints of

criminal misconduct or irregularities affecting IRS employees or operations. It also

conducts investigations of non-IRS

persons who attempt to bribe, threaten or

assault IRS personnel, the unauthorized

disclosure of federal tax return information,

disclosure or use of information by preparers of returns and charges against tax

practitioners.

The Division also investigates IRS job

applicants and conducts special investigations and inquiries for the Commissioner

and the Secretary of the Treasury.

During 1978 internal Security inspectors

arrested or were responsible for the

indictment of 147 persons including 92

taxpayers and tax practitioners, and 55

employees or former employees. During

the year, 95 persons were convicted,

including 83 defendants who pleaded

guilty. Of these, 46 convictions were for

bribery, 11 were for assault and the

remainder involved such criminal charges

as conspiracy to defraud the government,

obstruction of justice, subscribing to false

returns, disclosure of confidential tax

information and embezzlement.

In one case, two high officials of

a

nationally known company were convicted

of authorizing gratuities of approximately

$27,000 to IRS employees. The corporation

also was convicted and fined $36,000.

Earlier an IRS audit manager was convicted

of accepting free vacation trips from the

company,

Bribery Awareness

The Division increased the number of bribery awareness presentations to IRS

employees, expanding them to include

videotapes that realistically portray bribery

situations IRS employees may encounter.

The effectiveness of these presentations

may be gauged by the facts

- 186 employees reported 252 possible bribery

attempts resulting in 73 arrests or indictments and at the end of 1978, 21 persons

were awaiting trial on bribery charges.

Assaults and Threats

FBI statistics from last year show that 74

percent of all threats and 41 percent of all assaults on federal employees were

directed at IRS employees.

Internal Security responds promptly to

protect IRS employees threatened or assaulted while performing their duties and seeks vigorous prosecution of these

cases by the U.S. Attorney. In instances

where prosecution is declined

- usually

in verbal threat cases without physical

assault- an inspector, with the approval

51

of the U.S. Attorney, contacts the alleged

assailant to inform him or her of applicable

federal statutes concerning assaults or

threats on government employees. The

person also is advised that repetitive acts

could result in prosecution.

The Division is conducting studies seeking

better ways to ensure the safety of IRS

employees in assault and threat situations.

Checking the Workforce

The Internal Security Division completed

13,017 investigations of employees during the year and 15,674 police record checks

on persons considered for temporary

appointments,

These investigations and record searches

resulted in the rejection of 85 job applicants and disciplinary actions, including

separations, suspensions, reprimands,

warnings or demotions against 741 employees. Also, at the request of the Office of the Secretary of the Treasury, the Divi- sion conducted special investigations

involving employees of other Treasury

bureaus.

While some investigations of IRS em- ployees resulted in criminal prosecution or disciplinary action, in many other cases

employees were exoperated of accusations

of misconduct.

Taking Precautions

In each region, 100 integrity development

projects initiated by Internal Audit and

Internal Security probed high risk IRS

operations. As an alternative to merely

reacting to complaints, allegations or referrals this approach is designed to

Identify and examine areas in Service

operations particularly susceptible to

corruption and fraud.

Q
52

Chief

Counsel

The Chief Counsel, an Assistant General

Counsel of the Treasury Department, is the

chief legal officer for the Internal Revenue

Service and is

a member of the Commissioner's executive staff. As such the Chief

Counsel advises the Commissioner on

matters pertaining to the administration

and enforcement of the internal revenue

laws and related statutes, as well as oh

nontax legal questions.

The Chief Counsel is assisted bya Deputy

Chief Counsel (General),a Deputy Chief

Counsel (Litigation),a Deputy Chief

Counsel (Technical) and seven Regional

Counsels,

The Office of Chief Counsel employs over

900 attorneys, making it- next to the

Department of Justice-the largest law

firm in the country. These attorneys are

located in the National Office, the seven

Regional Counsel offices and 45 District

Counsel offices.

Approximately 35 percent of attorney time

is spent handling litigation in the United

States Tax Court. The attorneys also advise

the Service and assist the Department of

Justice on refund suits, criminal tax cases,

suits seeking the disclosure of files and

documents of the IRS, collection suits, and

nontax litigation involving the Service in

federal and state courts.

The Chief Counsel made some organizational changes effective July 2. 1978.

These changes will enable the Chief

Counsel organization to provide more

efficient legal and technical assistance to

all functions and levels of the Internal

Revenue Service and to be more responsive to the needs of taxpayers and their

representatives.

Refund litigation work was decentralized

to the field offices and the coordination,

review and policy functions of the Refund

Litigation Division were combined with the

Tax Court Litigation Division and redosignated the Tax Litigation Division.

The Regional Counsel structure was

modified. District offices were created at

the site of each of the seven regional

headquarters offices and Regional

Counsel offices were established for each

region, along with eight new district

offices.

Attorneys in the district offices will work in

all field activities, to the extent feasible, so

that they can gain experience and be

utilized in all phases.

An Employee Plans and Exempt Organizations Division was established under the

Deputy Chief Counsel (Technical).

The National Office divisions supervised

by the Deputies Chief Counsel have been

realigned and are set forth in the

organization table.

The purpose of the organizational realignment is to decentralize case responsibility

to field offices, to strengthen the field

organization and to augment the ability to

provide legal advice and service to IRS

regions and districts. The National Office

continues to serve in policy formulation,

providing technical guidance, interpretation, coordination and assuring uniformity

of positions.

Administrative Services

The Administrative Services Division is

responsible for budget, administration,

and management in the Office of Chief

Counsel. The Division coordinates the

recruitment program for the Chief

Counsel's office, runs the Summer

Employment Program for legal interns and

provides opportunities for Counsel

attorneys to participate in law school, bar,

association and in-house training courses.

Under the aegis of the Division, an Equal

Employment Opportunity Advisory Committee and a Federal Women's Program

Advisory Committee, assist with the Chief

Counsel's Equal Employment Opportunity

Program. The office exceeded its affirmative action goals in 1978.

The Division is engaged in planning and

analysis, cost/benefit studies, systems

development and operational activities

such as legal information retrieval and

computer equipment analysis. During

1978, it initiated major changes in the

Chief Counsel Reports and Information

Retrieval Activity (RIRA) System, With

support of the Assistant Commissioner

(Planning and Research), the Division also

planned, developed and monitored an

automated attorney work/time sampling

for use in zero based budgeting, long

range planning and management control.

Planning is underway to decentralize the

RIRA System for refund suits and to redesign most reports. It also is participating

in the development of

a master plan for the

proposed Servicewide Management

Information System and is conducting

a

feasibility study of

a proposed Chief

Counsel integrated management information system to provide automated services

for inventory control, workload planning,

preparation of reports and legal research.

The Division recruited paralegal specialists

for all divisions of the National Office to

assist attorneys in legal and other work,

Plans are underway to recruit paralegals

for the larger field offices,

Criminal Tax

Attorneys in the Criminal Tax Division

handle criminal tax legal matters for the

IRS, furnish legal advice to the Criminal

Investigation Division and review cases to

Receipt and Disposal of

Criminal Tax Mafters-1978

Prosecution Cases Received From

Criminal Investigation

Pending Beginning

Total Opened

5.710

3,439

Total Closed 2,681

Counsel Declined 261

Department of Justice Declined 336

U.S. Attorney Declined 26~

Prosecutions Completed 1,815

Pending End 6,468

Opinions

Pending Beginning

Total Requested

47

90

Total Rendered 106

Pending End 31

53

Criminal Tax Activity -1978

Referrals By Counsel

For Prosecution 2,634

Indictments& Informations 1,724

No True Bill 11

Plea of Guilty Or Nolo Contendere 1,189

Convicted All& Trial 225

Acquitted 70

Nol-Prossed or Dismissed 119

Legal Assistance To Criminal

Investigation (In Staff Hours) 22,473

determine if prosecution is warranted, The

function also coordinates criminal prosecu-

(ions with the Department of Justice,

provides assistance to U.S. Attorneys in

criminal tax trials upon request, assists

the Tax Litigation Division in the application of the civil fraud penalties and

coordinates disclosure, Freedom of

Information Act, and Privacy Act matters in

cases where criminal action is anticipated

or has been undertaken.

The most pressing criminal tax issue this

past year concerned alleged grand jury

abuses. In In Re: April 1977 Grand Jury

Proceedings (General Motors Corporation), 573 F.2d 936 (6th Cir. 1978),

rehearing an banc June 13, 1978, reversed

on jurisdictional grounds Sept. 7, 1978, the

original court of appeals panel ordered the'

termination ofa grand jury investigation

because of the participation ofa Regional

Counsel attorney specially designated by

the Attorney General. The panel viewed

such participation as creating the appearance of a conflict of interest in light of the

attorney's status and earlier handling of

related matters for the IRS. The full court,

ina sp Iit decision, reversed on procedural

grounds.

While the General Motors an banc proceeding in the Sixth Circuit was pending,

in another case the Fourth Circuit found no

basis to invoke mandamus to protect

against alleged grand jury abuses. In In Re.

Grand Jury Subpoenas, April 1978, at
54

Baltimore, 47 LW 2138, Nos. 76-1335/36

(4th Cir. August 3, 1978), the corporate

target complained that certain grand jury

subpoenas were overly broad and improperly motivated. The court of appeals

found adequate protection in the grand

jury secrecy provisions.

In June 1978 the IRS and Counsel issued

new rules governing the relationship of the

IRS and the grand jury and establishing

strict criteria for involvement of IRS

personnel in grand jury proceedings.

Authority to refer potential criminal is>:

matters for grand jury investigation is

vested ina handful of high level officials.

Generally,a request fora grand jury

investigation must be personally reviewed

and approved by the Regional Commissioner and Regional Counsel. Receipt and

use of grand jury materials are tightly

restricted. Service personnel assisting

grand juries are completely insulated from

related activities involving civil tax liabilities.

Disclosure Litigation

Attorneys in the Disclosure Litigation

Division handle the Freedom of Information

Act, as well as requests for disclosure of

documents and testimony in both tax and

nontax litigation. The Division also is

responsible for providing legal advice to

the IRS on the Privacy Act of 1974.

Disclosure works closely with the Disclosure Operations Division of the IRS.

also coordinating with the Department of

Justice all litigation arising under the

Freedom of Information and Privacy Acts,

including recommendations about defense

or settlement of suits and appeals of

adverse decisions.

Much of the 1978 litigation concerned taxpayer attempts to gain access to civil and

criminal investigatory files through the

Freedom of Information and Privacy Acts

rather than using established discovery

procedures. Also, employees and their

union representatives increasingly

have litigated under these acts to

attempt to obtain access to personnel

records of other employees and management documents for use in grievance and

other personnel proceedings.

EP/EO

The Employee Plans and Exempt Organizations Division provides legal assistance to

the Office of the Assistant Commissioner

(EP/EO) in the issuance of letter rulings

Receipt and Disposal of Disclosure Litigation Cases

Types of Cases

Disclosure Opinions 104

Disclosure Litigations , Disclosure Coordinations

Discovery Opinions

FOIA Opinions

FOIA Appeals

FOIA and Miscellaneous Litigation

FOIA Requests

Privacy Act Opinions

Privacy Act Litigation

Privacy Act Requests

Privacy Act Appeals

Division Totals

Pending 10/1 Pending

/77 Received Disposed 9130178

205 213 96

2 144 12

4

-

4

2

-2

38 115 137 16

150 389 367 172

70 60 57 73

17 104 89 32

15 17 22 10 6 4 3 7

404

53

2

917 897 424

Employee Plans and

Exempt Organizations

Division Cases Received

1978

Type of Case

Revenue Rulings 25

Letter Rulings 22

Technical Advice 14

Other Advice 11

Legislation

Regulations

5

60

Miscellaneous

2

Total 139

and determinations to taxpayers, technical

advice to IRS personnel and revenue

rulings and revenue procedures. The EP/

ED Division also provides legal assistance

to other divisions in Chief d6unsel in

determining litigating positions and in

coordinating the litigating positions with

the ruling positions of the IRS on employee

plans and exempt organizations matters. The Division, in EP/EO matters, represents the Commissioner and IRS in tax

legislative matters: provides the Treasury

Department with technical assistance and

expertise in the development and drafting

of internal revenue legislation; furnishes

ass~stance to congressional staffs in the

drafting of committee reports; drafts and

conducts hearings on proposed regula- tions, and assists in the preparation and

review of certain tax forms, instructions,

and publications,

The EP/EO Division was established in

July, 1978, at which time approximately

48 regulations projects were received

from the Legislation and Regulations

Division and some 40 cases were received

from the Interpretative Division.

General Legal Services

The General Legal Services Division

handles nontax legal matters. Attorneys in the General Legal Services function in the

National Office and field offices represent the IRS in labor cases, including repre- sentation hearings, impasse proceedings,

55

unfair labor practices and arbitration

hearings and serve as

a member of and

counsel to management teams negotiating

individual and mulli-unit labor agreements.

The Division also provides representation,

where proper, to IRS employees and

officials who are sued for damages in

actions taken in the due performance of

General Legal,

Cases Received

1974-1978

RM

1974 1975 1976 1977 1978
56

Receipt and Disposal ofGeneral Litigation Cases

National and Regional-FY 1977

Status

Pending October 1, 1977

Received during year

Disposed of

Pending September 30, 1978

Court Non-Court Total

9,709 1,765 11,474

11,912 5,783 17,695

11.524 5,794 17,318

10,097 1,754 11,851

official duties. These attorneys also

represent the IRS in adverse action and

discrimination proceedings, and the

Director of Practice, Office of the

Secretary of the Treasury, in disciplinary

actions brought against tax practitioners.

as well as provide advice to the IRS

concerning government contracts,

tort claims, forfeitures, problems involving

ethics, Inspection Service actions and other

matters not directly involving federal taxes.

For 1978, the attorneys tried 173 cases

with 1,494 hours of trial lime.

During this past year the number of suits

filed by so-called tax protestor$ substan

tially increased. Also, there wasa sizableincrease in class action discrimination

complaints. The reasons for the increase

in these complaints and what must be

done to eliminate unjustified complaints

are being examined.

General Litigation

The General Litigation Division furnishes

legal advice to the IRS in connection with

the assessment and collection of federal

taxes and assists the Department of

Justice in the prosecution and defense

of suits to collect taxes, suits to recover

erroneous refunds, proceedings under the

Bankruptcy Act and other insolvencies,

civil enforcement of summonses and

injunction and declaratory judgment

actions. It furnishes legal services, and

assistance unrelated to docketed cases,

including day-to-day formal and informal

advice to IRS and local district offices, and

to the Assistant Commissioners of Compliance, and Taxpayer Service and Returns

Processing.

A significant development in summons

enforcement is the Supreme Courl's clarification of the "sole criminal purpose"

criterion employed by courts in determining

whethera summons should be enforced.

In United States v. LaSalle National Bank,

98 S. Ct. 2357 (1978), it was held that the

IRS may not obtain enforcement of

a summons issued solely for a criminal

investigatory purpose. Nevertheless

enforcement ofa summons issued by

a

special agent may not be denied merely

because the special agent focused solely

upon the criminal liability of the taxpayer.

Rather, the determination of whether an

investigation hasa solely criminal purpose

must be answered only by an examination

of institutional posture of the IRS. The

special agent's motive or purpose, however, is not equatable with the IRS's

motive or purpose.

Interpretative

The Interpretative Division provides legal

assistance to the Assistant Commissioner

(Technical) in the issuance of letter rulings

to taxpayers, technical advice to IRS

personnel, and revenue rulings and revenue

procedures to guide the general public.

Interpretative also provides legal assistance

to other divisions in the Chief Counsel's

office in establishing litigating positions,

and in coordinating litigating positions with

the ruling positions of the IRS except in

cases involving employee plans, exempt

organizations and certain general litigation

matters.

During 1978 Interpretative Division attorneys assisted in the preparation of

a

substantial number of revenue rulings.

Among the more significant were several

rulings dealing with tax shelter abuses,

General Litigation and Disclosure Cases Received 1974- 1

978

Types of Cases--Regions:

Bankruptcies and Receiverships

Wage Earners'Plans (CH. XIII)

Arrangements (CH. XI)

Reorganizations

& Real Property

Arrangements (CH.

X and XII)

Miscellaneous insolvencies

Decedents' Estates

Suits to Collect Taxes

Section 2410

(28 U.S.C. 241 0): Interplealders

Injunctions

Others

Disclosure and Testimony

Summons Cases.

Erroneous Refund Suits

Miscellaneous Court Cases

Advisory Opinions

Discharges of Property

from Lien

Tax Return Preparers: Advisory Opinions

Court Cases

Total, All Regions

National Office:

Appeals

Advisory

International Operations

Disclosure and Testimony

Other Centralized Cases

3

Total, National Office

Total, A:l Regions and

Nations Office

1974 1975 1976 1977 1978

1.112

-_

1.254 1,431 1,309 1.280

102 62 99 104 93 -

2,273 3.440 3,422 1,828 700

348 626 .639 393 121

100 102 118 68 70

413 374 386 415 424

623 565 720 742 750

242 222 255 231 274

162 160 230 203 237

272 227 188

481 424 463

156 163

546 609

1,663 1,877 2,876 3,698 6.506

31 42 41 24 34

530 564 615 729 1~025

4.310 4.860 5305 5.561 4,774

2.269 2,701 3.500

8I

14,931 17,500 -

20,288 16,007 17,069

1974 1975 1976 1977 1978

184 197 113 128 168

140 298 484 541 392

165 126 262 200 55

158

26 29

2

2

214 11

673 650 Sao 883 626

15,604 18,150 21,168 16,890 17,695

~N,

R-ga,-,--Acl,-

57
I

58

Interpretative Division Cases Received

1974-1978

Type of Case 1974

Revenue Rulings 471

Letter Rulings 124

Technical Advice 90

Other Advice 158

Total 843

The Division participated in the resolution

of several long-standing and difficult

depreciation matters and other matters

concerning pre-bankruptcy income tax

claims against The Pennsylvania Railroad.

This settlement was noted in the Opinion

and Orders Regarding Confirmation and

Consummation of Plan of Reorganization

of the United States District Court, dated

Aug. 17, 1978.

Legislation and Regulations

The Legislation and Regulations Division

represents the Commissioner and

the IRS in tax legislative matters and drafts

proposed regulations, other than those

relating to employee plans and exempt

organizations. Division attorneys provide

the Treasury with technical expertise in

developing and drafting internal revenue

legislation. They also help congressional

staffs draft committee reports on tax

legislation.

Legislation and Regulations Division

attorneys represent the IRS in negotiating

and drafting tax treaties with foreign

governments. Working closely with IRS

officials, attorneys in this Division also

participate in the preparation and review

of tax forms and instructions, hold hearings

on proposed regulations, evaluate suggestions by IRS personnel for regulatory

changes and review taxpayer publications

issued by the IRS.

During 1978 the Division continued to

develop regulations to implement the Tax

Reform Act of 1976. Included were

1975 1976 1977 1978

443 423 399 385

117 114 122 98

80 73 80 60

212 257 189 175

852 867 790 718

Refund Litigation Cases Received

1974-1978

HIM

1974 1975 1976 1977 1978

regulations relating to disclosures of tax

returns and return information for tax

administration purposes, duties of income

tax return preparers, refunding of industrial

development bonds, public inspection of

written determinations of the IRS, group

term life insurance, tax credit for earned

income, New Jobs Tax Credit, real estate

investment trusts and property transferred

in connection with performance of

services.

Legislation and Regulations Division Cases Received

1974-1978

Type of Case

Legislation

Regulations

Miscellaneous

Total

Tax Court Cases Received

1974-1978

MIN

wmz~~

=EM

1974 1975, 1976 1977 1978

59

1974 1975 1976 1977 1978

77 85 59 61 74

56 171 85 271 60

43 33 46 41 55

176 289 190 373 189

Tax Litigation

As part of the Chief Counsel reorganization

the Refund Litigation Division was com- bined with the Tax Court Litigation Division and responsibilities for tax refund matters

were decentralized to the Regional and District Counsels. The new Tax Litigation

Division is responsible for the coordination,

review and Policy functions of both old

divisions.

One of the major responsibilities of the Office of Chief Counsel is the representa.

tion of the Commissioner in all actions

brought in the United States Tax Court. Trial of Tax Court cases is generally the

responsibility of attorneys in the field offices. The field offices serve as the legal advisor to the Appeals Division. District

Directors, Service Center Directors, and

the Director of the Office of International

Operations, and review certain categories of statutory notices of deficiency in nondocketed cases. The Tax Litigation Division

in the National Office participates in the formulation of positions to be adopted in

cases before the Tax Court to assure

uniformity and consistency in Tax Court litigation.

There isa Small Tax Case procedure in

the Tax Court for cases involving deficien. cies of $1,500 or less. Such cases are heard by Tax Court Special Trial Judges, and neither the taxpayer nor the government may appeal from decisions in such

cases.
60

Tax in Litigation-Tax Court Cases

(in Thousands of Dollars)

status

All Tax Coaft Canalla' B-11 Tax C.-

To.- annel Panal"..

_?,am"aments Taxes and Panalbals, 0~Plareades

In

c_V 01.1- numeel Chlbound

Pandang

1a1 77 21380 $2 855 975' $294.661'

Recon,act 13'~84 '982.900 5.68t

O.s;dbsad`t

1 l,,197 576659 194.1 la 21.805

I, RecomlY 33 7%

allP.-mg

9 30 78 23,t67 3262.216 278,537

Ddal lot mclude an -ahlo(y ol no, all.-m'y

(E Ple

,g, 7~

6

'nsa do

Erampt Orgamz,bods) cases coma,slmg of

3 cases

bond, 01117 35 acorns, 24 hasousals, and

4 cases aeld,ng

9130178

1, luces both small-

case, red other

me DradoWs d,=c.tts tread orlad, and dfitm-ad Same .1

dal.rm,h, ne are to, cases hdh em s.bractlenty

lowaled

The Service modified its settlement

procedures in an effort to settle more

Tax Court cases and better prepare

the cases that go to trial. This revised

procedure sets new procedures dividing

settlement jurisdiction over cases between

the Apoeals Division and the Chief Counsel's Office. Generally, Chief Counsel will

have exclusive jurisdiction over the disposition of cases in which the statutory notice

has been issued by the Appeals Division.

In most other cases the Appeals Division

will have exclusive settlement jurisdiction

for four months after all pleadings have

been filed in the Tax Court. If

a case is not

settled by the Appeals Division within four

months it generally will be returned to

Counsel for preparation for trial. After trial

preparation Counsel may consider settlement negotiations.

3 DOV $2 208' $56

3:952 2724 34

68863 ~56 2.381 st,381 67 $24

316% 580% 358%

3303 2.551 23

Nuentate

of In Mean- Datter.

nelood Cases Ditnome moral Calmed nened

'I

A

a as. bercamagd of Amobht ,`,Amo,n~ deammmed -preased

rad Cla,mad These amounts

d not at glonsd

inclu

a

assessments wh,ch ale agreed 10 by the la,rdayer st- c,

Apm.,11.~, ad Inlarrence, ,as lmo_

=dep, om, m, dl. ',a as

R

he comon of Ina mourl

b d1lable 1h,Ch as det,nd,cl 1. the m.p.m,

-

r P-tlad figm..

The Tax Litigation Division also now

performs all necessary legal services on

behalf of the IRS in connection with suits

instituted by taxpayers in the United States

District CiDurts and the Court of Claims for

refund of taxes. The Division determines

and coordinates the legal position of the

IRS in these suits and incorporates

such positions in recommendations to the

Department of Justice, which handles the

actual trial of such cases. The Division also

advises the Department of Justice on suits

for declaratory judgments regarding tax

exempt status brought in the District Court

for the District of Columbia and the Court

of Claims. The field offices serve as the

legal advisor to the Appellate Division,

District Directors, Service Center Directors.

and the Director of the Office of International Operations, and review certain

categories of statutory notices of refund

claim disallowances.

61

Appellate Court Case Record

(Decisions-Refund Litigation and Tax Court Cases)

court

Cobble .1 A.-,.

OngentIly mendm TI, CDonbc, cobb,

S..,-. Cob"

For tha

Go-neem,

Partly to,

am Poll

AnI.:lmla, the

Total No.

% No. ~

No.%

M~- ~2.1

87- 70 805% 10 115%

&,ma: the he

99, 72 727% 6

to 18 2%

66 7%

2 33 j~

86%

7

a 1%

9 91%

Of the cases ndl nied,l Ta,, C.,m. Ina Cobra of

Appeals tendered

a cb111.1a 11 121 dockets. mcild,dg, 93

01 b'D

dockets to,

Adoes, 1.=: orgSh',

tstrcl Cwqs. the Courts

mlsllml.'~Tllib~'Oockels ganstmagavell,all,

and 17 dock

,a

part, to, 9.a,n,.rt. he gom;

Trial Court Case Record

(Opinions Rendered-Refund Litigation and Tax Court Cases)

'

Atolon

Deciberom jam, of G.mmmed,

To, count

court -1 Chdants D1.1110 Co...

;--ar_Tax C.... -.1 Total

19" 1976-

-

1977 197P

-1977 1970--

1977 1978.

-

Ign 1978

~-,n 30 30

2.

-Pnomt 682% 638% 38663% 216628% 258 262 283 27, 5~t 533 55,1% 540% FA- 479% 54 8% 50 71~ Decded,n t,m, of T-m, -N-ber

-Percent

Decded part, TG.gtd. er.,~,araan.a"Ycamel l""' he -Numbe,

-percent 45% 106% 1201 11 1%

~

8

Total OP-mons

12 12 76 go ~7 11 57_66,0~ ,G 27.3% 255% 21 7% 26 2% 100% 103% 110% 116% 105% 110% 2 5 43 38 'M 173 go 229 343 102

`t~ 47 259 344 468 485 520 556 988 1.05,

7% 3~ 6% 40.5% 34 7% 383%

Related cases am reflected as one ap,,lb,

,470Dmdns,,Co,nl.f eldramm,ving 52

- 566 Ta~ Ccul p,n,.,,a mml,ng 707 calls other than small 344 colmons In cases T.~ C.b,, Calls

485 "IsInct Courts lml-R, 395 .,as

- On Cases to, 1hdh ded,sons a~C0udoPm,oPsmm1,lnq5D5 mafll7a~Catiox yea, -'a -IlelcO d,xmQ the 1,adal

Tax in Lttlgatior~-Refundl Suits'

(in Thousands of Dollars)

Maldet coant.

shateat Norebw Amount Amount

C.W Daped., 'I R.randed",

Pe,wmg MV77 2.769 S635553 Reccend

Devor.

817S 185

at i $ 113:0135 0, go

% Not

Pandang Re""" 9W,8 2.775 W8.653

S32.920

396%

coun of culuda Total

Nualoar Almems Annestare Nonrated Am obMA-d~,

C.-I.,

,.,,In R.tu Net

.x hate,. C-1 Via"IIn RlduextNo'

661 V59.561 3430 $1,095.144 212 SlaS.651 1:029 $

284,836

122$ 30.507 $16,6~9

546% 933

$ 113592

751 $617 705 3.526 $1.266,358

U9.569

~3.61

mc~, Casesm Co.11, at Appeal and be Sumame m. .,a

"oed no,, the colUmns,e.oloselng

I Am..m in cesculem,ludes cloth. to, refi,nd of la-.Penall- the court of or,

Co

gsbasals

Include cases mad talll.d.aloodamesed

gm an.dTintelost and co.ma,digem --dls

net ach'ad al me --m .-ghl

I

. al.na, kmdr, -, hot leturadeb to ta,Daye,
Appendix

Audit Charts and Tables/64

Statistical Tables/75

Chronological List of IRS

Commissioners (1862-1978)/108

Principal Officers of the IRS/110

Organization Chartt116

Map of the Regions, Districts,

and Service Centers/117

Chapter Headings/118

63
64 Audit Charts and Tables

Figure 1

Revenue Agents and Tax Auditors (District Examination Divisions)

Percent of Returns Examined

~Bq Type of Tax

1978

Estate & Gift 2.1%

Corporation 6.89/6

All Other

Excise 4.4%

Employment 6.6%

Other 11.9%

Individual and

Fiduciary 78.1%

Total returns examined 2,159,422

Figure I (cont.)

Revenue Agents and Tax Auditors--Continued

Percent of Dollar Recommendations (Millions) By ry Type of Tax

1978

65

Estate & Gift 1111.6%

Corporation 54.0%

All Other

Excise 2.30%

Employment 4.1%

Other So/.

Individual and

Fiduciary 27.5%

Total Dollar

Recommendations (Millions) S6,11 10.1

I

1U, J~;

Percent of Time Spent on Examinations

By Type of Tax

FY 1978

r\ Estate & Gift 5.2%

Corporation 31.5%

All Other

Excise 11.91/6

Employment 2.9%

Other 7.9%

Individual and

Fiduciary 50.69/6

Direct Examination Time

(Days) 2,558,525
66

Figure2

Returns Filed, Examinations and Examination Coverage

Individual, Total $51=810

Gift

Form 1040-Standard 27.901.848 7,882

Nit under S10,000-1tem2ed 11,992.130

Total

NB $10.000 Uncler$15,000 12,853,606 21.416

NB S15,DDO Under $50,000

NB $50,ODO and over 799,885 B Under $10,000 B $30,000 and over 1,207,639

Fiduciary

Form 1065

Corporation, Total

Assets not reported

Under $100.000 932,066

$100,000 under $1 Mil 642.425

$I Md Under$ 10W 119.188

$10 Mil Under $100 Md 22,592

$100 Mil and over

Form 1120S

Form 1120 DIsc 6.611 1.523

Estate, Total

Gross Estate Under $300.000 193,438

Gross Estate $300.000 and over 28,904

income. Estate and Gift. Total

9 1280.306 545,662

Excite

Employment

Service Center Corrections

Returns Returns Examined in FY 197a Red

CY 19T7

Flevorust

Agents

39.893,978 28,705

21.646.2B3 49.322

118,917 7,249

4,176 3,279

22Z342

913,728 811110

E.clud,,g parmalshIp and Forms 11 20S MO --age -uld be

2 28

T"

service Ord

Auditors center Total Covaralle

306,433 1,369,419 169,390 1,845,242 If.%

20.823 286,824 40~337 3A7,984 2.90

59.493 22.675

1,675,691 11,499 43

1,138,283 27,579 249

1,639.364 147,273 67

35.625 31

59,466 19

32.133

9

9,521

425.287 11,569 42

29,902 3,514

14,266 3,124

15,636 390

348,918 9,884 1.743

25,079,3M 101,481 41,2M

171.303 6,959 186.144 .67

458,127 47~296 534.128 1.34

267.575 45,826 334.817 2.60

458.369 63,539 571.230 264

14,798

1.047 83,215 10.40

4,311,616 39.071 98.497 3677 141.245 3,28

B $10,000 under $30.000 4.910,803 46,934 46,654 6,319 99,907 2.03

61,492 17.522 1.686 80.7DO 6M

493.783 493,783

11.542 .69

27,828 2.44

147,340 8.01

8 7.257 610

35.656 3.83

59,4a5 9.26

32,142 2697

9,521 42 14

3,279 78.52

11,611 2.73

1.523 23,04

33,416 15.03

47,390 8.99

16,026 5545

11.627 3.33

1.375.077 169,390 2,090.129 2,29'

9s,908 10.50

142.775 .57

Figure

3

Tax Auditors (Staff Hours per Return) Individual Returns by Class FYs 1977-1978

Class

Total

Forni 1040 Standard

NOnbUSiness, under $1 0,000-1ternized

Nonbusiness, $10.000 under $50.000

Nonbusiness. $50,000 and over

Business, under $10,OW

Business, $10,000 under $30,000

Business, $30,000 and over

Figure

4

Revenue Agents (Staff Hours Par Return) Individual returns by class FYs 1977-1978

Class

Total

Form I G40 Standa,d

Nonbutiness. under $1 0.000-1temized

NOnbusiness,

$ 10,000 under $50,000

~Onbuslness $50 000 and over

Business, under $10,00()

Business. $10,000 under $30,000

Business, $30,000 and over

Fiscal Year

1977 1978

3.2 3.3

1.8 1.9

2.5 2.7

3.0 3.0

16 4.3

8.1 7.9

6.8 6.9

6.3 6.4

Fiscal Year

1977 1978

18.6 17.3

15.9 17.3

19.2 15.9

13.3 11.5

15.2 13.4

22.2 23.0

21.0 21.3

22.8 21.4

67
68

Figure5

Tax Auditors (Dollar Recommendations per Return)

individual Returns by Class and Region Fys 1976-1978

Class

Total

Form 1()40 Standard

Fiscal Year

1976 1977 1978

$ 248 $303 $322

144 181 209

183 209 205 Nonbusiness, under $10.000-Iternlized

Nonbusiness, $1 o,ooo under $50,000 -- Nonbusiness. $50.000 and over

Business, under $10,000

Business. $10,000 under $30,000

Business, $30,000 and over

Region

253 300 306

726 668 893

570 645 574

501 575 636

840 876 1,003

$ 248 $303 $322 United States

North Atlantic

Mid-AtlantiC

Southeast

Central

Midwest

Southwest

Western

010

261 323 338

235 293 306

267 317 324

235 273 295

250 280 340

250 283 322

228 308 313

397 512 459

Figure6

IRnevvInduuea

llkFq

ietutm

s(sCb;l IaCrlaRsesconmdMReengdIatnl

onssPle9rAelt

u7m8)

Class

Total

Form 1040 Standard

Nonbusiness, under $10,000--Itemized

Nonbusiness, $10,000 under $50.000 1,844 -

~Onbusiness, $50,000 and over

Business, under $10,000

69

Fiscal Year

1976 1977 1978

$2,972 $3,692 $3,898

1.251 3,398 4,391

2,619 4,510 4,542

2.454 2,338

5.037 6.085 4,830

1.810 2.191 3,125

Business, $10,000 under $30,000 1,790 1.759 1.951

Business, i307000 and over

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

5,025 5.647 6,416

$2,972 $3,692 $3,898

3,778 4,074 4,701

3,228 4,548 4,113

3,512 3,598 4,673

2.435 3,920 4.076

2,842 3,338 2,513

2,996 3,583 3,683

2,162 3,139 3,682

8,585 6,308 '9.898
eq

70

Figure 7

Revenue AgentAudits of Corporations (Dollar Recommendations Per Return)

Corporation Returns by Class Group and Region FYs 1976-1978

Class

Fiscal Year

1976 1977 197i

$ 16,916 $ 14,664 $ 22,402 Total

No balance sheet

Under $100.000

$100,000 under $1 Mil

$1 Mil under $10 Mil

$10 Mil under $100 Mil

$100 Mil and over

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

7,631 16,256 19,087

1,446 1,442 1,331

2,933 2,925 3,363

10,337 9,856 11,855

39,104 42,123 48,078

577.922 434,320 632,734

$ 16,916 14,664 22,402

22,322 15,793 24,902

13,689 13,666 20,412

10.395 16,063 15,027

15,757 10,307 24,083

18,048 16,983 19,748,

18,893 12,272 28,904

16,316 15,587 23,395

22.921 25,487 43,403

71

Figure 8

No Change Percent-4ndividual Returns and Time by Class and Region, FY 1976-1978

Tax Auditors

-

Class

Total

Returns Time

FY FY FY FY FY FY 1976 1977

1978 1976 1977 1978

24 26 26 17 19 19

Form 1040-Standard 33 33 32 29 29 28

N B Under $1 0,000-itemi,ed 21 27 26 16 22 22

NB $10,000 Under $50.000 23 23 24 16 17 18

NB $50.000 and Over -37 41 35 25 28 23

Business Under $10,00o 18 24-25 15 19 19

Business $10.0c)o Under $30,000 14 20 19 11 15 14

Business $30,000 and Over -

Region

United States

North Atlantic

Mid-Atlantic

Southeast

22 27 17 21 19

24 26 26 17 19 19

26 26 27 20 21 21

28 26 27 21 20 22

21 27 25 14 19 19

Central

Midwest

24 28 28 17 21 21

20 28 25 14 20 19

Southwest 25 29 26 16 21 19

Western

010

21 22 25 15 17 18

25 23 22 18 17 16
72

Figure9

No Change Percent-4ndividual Return and Time-by Class and

Region-FYs 1976-1978

Revenue Agents

Class

Returns Time

976 1977 1978 1976 1977 1978

14 13 13 11 10 11

Total

Form 1040 Standard 17 14 12 11 10

8

13 12 11 11

9

NB under $10,000-itemized 15

NB $10,000 under $50,000

NB $50,000 and over

Bus. under $10,000

Bus. $10,000 under $30,000

Bus. $30,000 and over

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

12 10 11 10

99

12 11 15 10

9 14

16 16 15 12 12 11

14 15 13 11 11 10

16 15 14 12 11 11

14 13 13 11 10 11

11 10 11

9 10 10

17 16 18 15 13 14

15 13 13 10 10

9

16 14 14 13 11 11

13 14 12 10 11 10

14 13 13 10 10 10

14 12 13 11 10 11

20 13 12 15 11 12,

73

Figure 10

No Change Percent-Corporstion-Returns and TimeBy Class Group and Region--FYs 1976-1978

Revenue Agents

Class

Returns Time

Total

1976 1977 1978 1976 1977 1978

26 25 23 is

No Balance Sheet 31 21 19 21 14 12

Under $100,0oo $ 100,000 Under $1 Mil

$1 Mil Under $10 Mil

$10 Mil Under $1 ()o Mil

$100 Mil and Over

Region

United States

North Atlantic

Mid-Atlantic

Southeast

Central

Midwest

Southwest

Western

010

32 33 31 27

15 12

28 27

23 26 24 21 23 21

23 22 20 18 16 14

15 15 12

6

8

6

6

761

2

1

26

-

25 23 15

26 24 24 14

30 28

26 23 22 17

is 12

15 11

25 19 17 12

27 29 23 15

14 12

17 13

22 24 21 12 14 12

28 26 25 16

23 24 22 15

16 13

14 12

39 19 20 30 14 12
74

Figure

rient, ExCise and

Fstate Gn EMPlOYn ations

Fiduciiiry Tax RetUrns-0011ar Recommend

Per Return and No Char4lit, ,nt

Dollar Recommends,

tions

Per Return

Estate

Gift

Employment

Excise

~ld~ ucla'Y

No Change Pencent

Estate

Gift

EmPloyment

Excise

Fiduciary

Revenue Agents

FY 1976 Fy 1977 FY 1978

$16, $20,958 $13.964 639

'180

,5,3 1 541

-

1,U4:) 1,003

4,413 2,081

13

25

13

23

7.802

2,277

1,707

-qo5

12

23

Tax Auditors

1976 Fy 1977 FY 1978

Far

$1.468

--

432

202

851

20

30

6

-

13 15 -

12

28 27 23

40 50 34

17

28

$1,496

-903

411

141

392

19

30

9

13

30

$1.552

-912

401

158

335

19

31

9

9

26

Statistical Tables

Table I.-Internal revenue collections by sources and by internal savants

.a regions, districts, States, and other areas

(in thousands of dollars)

.

Internal revenue regions, districts, Stat a and other aIS,

a tates rep

... to " "'

ig, ~sxbxd

r ' b I!,

Vcp`

h. , totals olhor Total internal Corturatho Income is. Railroad Unemployment States shown at =`otf fa`lol) ...no. ol.

an Total Income is. Income is n

of withhold withhold and Retirement I......car lections and SECA - I I FICA I- -

North.Unit.d States, total-.......

Ail,nti,

a

.......... .......... Alba

fsvi', ne)).'

-- Augusta. Al --- -

-:-

Bcgn~

......--.-(Massachusetts)::

S-uffal'~":: (See. ((c)) b'~

IU=n "') -----------

h, -::-:: "x!'.x`func:-::-::::.- P. of (2-mv( c "...........

M Providence (Rhode Island) ..........

ld-AU.bll, iWilow -----......

B -------------- 1, DC.)

1

(e

low

Pf b

So.

elaank

P1,.1ad.e,1

.

.....

nrund.:

......

'aur

)

....

........

ea.(e be

R ch

Siba Wilmnat.n.... ........

.I

.....

...... outheast Region.............

MIN .......

C.".. "I I'll,.1.1

(Morlh'

Ia'ck'-;f1WK::-:: on ((M11. dia)i -"i'-

C Niubvill"........ ----- (Tennessee)------- ...

..t.J Rmism--................

C -vaW Rtan

Louisville....... (Kentb1ky5:::'::':'::':

MParkefsburg ...... (West Virg,ma)--

d as

---------- Ah',%d ne!" --------

C %Se-'(b') 'b'.I.w;:::::: is -::

(Iowa)-j~~; --- Fax Moira—

Mi!wxWii:::::::: -:::: ((W"*='n'va Oman.................. (A.br.xk,))n ---

1 .,j)...

K L'' ~'.~'~'~'exou

Solirm,6111 .thereat _!I!! )

.

b

-

Austin ~1S:.

(1) m below)--.... Cheyenne .......... (Wy.

),hef.-- .) D ~S'.1or.'

bill- Ruck --- (Alklmrss).... Ok M w Oul.............-(Louisiana)-...

W Whoma City.- ...... (Oklahcurx~---.. .....

h

as').

If......

A.,h.,.g ............- JAW~ ... RDiae-- .............

,,,a,,

no

no A(a

Portland 5-------

I.,, Il111.1h,),

4~xn Francisco ----- ... So.(.

Ofs I

nifter). ~

saftle-. ......... ... Wash ........ P. R1:,t*.1 R1mt.,7t1,,~mf.a tion,

Oth ....::...........

""""`ud*%Pox1t3 o...........

.

Federal tax ti ,"i's 1, and =PICAiiiii 7~-:: "',Z an, of

.... ....... W ,ithheld asm~~Agj~Ftaxes countofI Federal:. loyees.

P

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

or Exd~ taxes-aviationlubi and

Presidential Electiond

EsIrld Income Credits 12 .......... .............

(1) 11 i

1~, ",wO,i.__

if ParmsI.-i ----------

Texas ---------- ...

3%1:3"1:,1 6. a 1

3,9762,923

9,1153:7 " is'

1.,1. 14: 616271

8, %1: NN3

211:,59:9 711 13316

Sir1:582 272:,11.4

115:1,14

III: 12'~

M: .19 1"' 17

6.39, :1.127

1,705

4

al~ '.B: IN4

1

2: '31

1: 2" 386 7 705,367

01: 91721 18

1

1:1221

5,034,752

la: 7"4: Ill "

20,953,016424

4:125:111 650

928

fi,1:13 1911 6,

035,

21, '5175: '5 '59

1, 12,653

0,674 7,'820,816

2:111:ff to 0% 1,

8,6611 01

4.663 09

411: 0151,1: 14' file

14,582,195 54

10, 5397: 1539'

7:1 9

11: IN

113

126.

I4:95218': 3'

621:119121:3117,1

1, 278027: '8149

1, 7 113

2'01 :

.0

242:16319:03. 4 713

1I:I199 13:141

581

:4

ISI 4311': al72

6,296,901

1,1U7:2 61 17147

11178,037

9m

69651~'140

-I-15 169

80:816

-17

39,077 7,

184

(3) (4) (1)

Individual Income and employment taxes

(6)

75

(7)

1113:1 14 1 110, 349,797 51,01,370 253,617,181 2,019.231 2,642,014 7:667.1 4,6: E,13 53,435 41 821 1: 56' 261 27 1 162,747 3

3

321: 1181 1: 0 820 225 347

BI: " 313: IOU 791: 14448' 646,945 '7:895 7 772 1,6 70 7, 76 1. 13 14:114.05 11.688 66:311 631 1 1: 5321.1: 27,9 l,,191,739

'7'

18,8283 44,628

136.

31 113

1'.67:,36 al

89 3

35

2: 111 1 14.1147 5,14341 354 73': 8"72 " ""262,974 519 2,

3: a..

97()I:

199

4:

928

113 41:63' 1,1 16351 61, s,

US

"

112:

5 5

6, 5318

In 5 974 49: ... 167..:862 17 :441161 1, 1,3~ 1 11 23 7.922 11,1: p,2.1 1,31,21 72

1112 Sao ILU 11.577

1:

111:

..

1 1,,: 31 1~7,1 8 '21to 821. 124 319,492

1

7

2 3,121

1 d, :I

W 321 3 1 17

11 44, 113 3

1

1 1: ~4

611 1: 762:2

642 91,652 d76 '1

14,

1336 071 19,.4

,

31:

..

1: "B2,

~

dl~6,.13 '6 51

_,

782

5

13 925:925 7,665,958 9615:054 6,722,659

7

5

63 1~731: 111 1: 31611. 1~35 1, 006, 111 1.

7R 2'37

a,

962 38:776 2 1,3 1

150,229 1, W 24 1 2 9,320 5,639,040 "07,:6 sits 7 21,:Ix'3:4 LM 121 6, 111, 115 22, Xll~ 435 93, 87 271 746 '43 , 385 736

,,, 4 ", 7

715.119 4:011:114 3,

1

as 4): 716

'13

566, 1,503 27.89 1'., 327: 13' 1 113j, 3" 411 11 1: 0733 184 751 22,412 1,3 1: do 882:471 4

74:418 343 52,405 1, 452112~ U1.1 8: 1 114.

0'02'5

84

471 2,166: B5 6,120 DO 4 '2:' 7 3'41a

843:077

190 765,097 3,992 36 371 8,1525:124911 41J2191:150 6 6, lxlfl~ NNI 331: 0%2,-,,2" 579 354344 117 929,569 1,4144 76 2: 071: 2~11 11: 83,1.1: 7 913:0411 8, 25; al: '22"0 1113' 3133'

'15

3,269

02

3 1: 7' In: 63 2

Il, 12: g3l 7: '241 21 1. 13:3441 1 1613 33161 of 16 13419: BW

73

546

9. 2 4: M. 79 2:0 3:0

60,117 23:5194,7 1,322,945 39097:362 1,002,876log 10

8U 09 49,693,289 7,770.500 40,915,7171 121,111 311,,711 11 774 499,0 1,3 13,

.

027 I1,' 1`17 6,, 1, !" 0' 3: 1 212,35332

52':693 2, RVID~ NU 311 31509

1: 8

a all 3 185,200 37'1,'7

.9

7

3.

877 H~ 853 '111 N 1 4

4a,

1.63 5,7 8:18 14' 450

"1 01'

224

3.

3U31:.. 2:,011: 734 17: "156

1 :481: I'll 534 91:194 860 135 7 5M 1,27 2,161

11 1,491,447 6,891,350 81221': '73'13 '5: N193: 97114'

1

:2 48L 1619 804 2

4.193 22,948

a. 2n: Mb 313: '4111: 51 8. '0'2: 792 21: 0.2;101'9' Pd. 3551 274, 10,19,:5 138 If

121 1 13121:751~1 1939,07 9 7,

431 3,066: '1310

526 2.3 9 7,77

669 8,252

77,

016

3

:081 ..

6

2, ON: 111860 7, NEI: 10'61 1, '14479: 1151 5, 62597 101,.131 7:721 4 1

2

71 .3il 11:34158, 4,211 99': 3,21 9 529 2713, 355 2. '60'1 11:4'4'?:'4'3 095 783 176,531 3:1171 111 2,1;

1:

30~ 399 154 ~ 1:914

434

2 922, 7 30 7313 2:16 251 183 742 421, 101 2 721:921 11:980 1.897,693 117,659 20.57 9'. :4 49:429 M4 9, ..

39111 02 71 5. 39,309,928 164,986 3: 2 710 104 673 4 2~2,1 114 574 INS': 601 187:275 V908:223 7~ :3 1, 12' , 213 19,:3

2' ......

526 4,682 141: IN 2: 3911 338 8 292 7:11',

4 44 29:112 477

159 1, 4,212 2,7:3.1 511 11:21 2 92:674,1 1,11197:1 1

1

5

go 013

1: 774,527 352 19.953 1W 367 112 3,

-- 3,.8., 23',117$ 2,457,404 563 11 121 is,

28)

1,4,

fix 7

8, 569 2.e, 163,

377 217:61So' 1 914': 01A 1,4831 110: '1 8491 6 411

1 4,9

088 568,275 1111:.3 10 317

1

4 2: G5Z 556

1 ,

077 131 141

.3.

000

4_, 2

1 9.

7,

1

Sal

4

1

4,367 32 '7:61 1 379 217:681 1,0240,000 4,4111 14

1

1 3. 613

7"

794 23 414 45 924

1"' 69,387 586 194: 267 7890:176 4,40i 741

,354

39

3 6178.481 - 451,472 857 216,152 2966 1,

a" 611,844- -

-15 169 -

-180:816 - -1110,816 -15'IG9

39, 7. OT7

194

z

-

OT7

39'7,184

Totals for States not shown above

1:1771 171 6: 271.1: S11 31:13:711 1 1,9:1, 21:735,708 144 1 4~axg . 1 23 1', 20, :,

"

11

1"'

3' 19at 5. 97 546 a 632

2:0 45 63,543 11,958,153 31,131:114 ,:243 jif

823

43

32, 23:8 9"a, 057 3.111:111 17.71

219 1. 5:

417:137' 259 22,NV:578 119, ':1 'a, 111 17:1 :1

41,

11

1

181 2. 237791:

13 "'

149 '12 34D 952 25, 354 609 875

6,

4, 745 13,432,751 19,390

:0175,

184

'764:11

13 292

134,981 1

44,743
76

Table I.-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areasContinued (in thousands of cl ollars)

internal revenue nations, it tri,ta, State, --it other areas' (states npuesented is by single dis- far trict, indicated In parentheses; total.

other States shown at little of table)

Estate Us

E clse .,as to at

umns -11' (,u. Tausor Gift 26,30,36 .Iu... 12 Is 41 and 535 Ill and 223

Alcohol Us.,

Distilled starts taxes

11:1.= I

by Do- Rectifi- OccuP3- Total Cu stoms) crestic's cation 11 tional 11 Other 1~

(a)

5 242 080 United States. total.... Ncurth-Aff-11, g6g:050

Albany.. 172:"6'32a Augusta -------_----- (Maine)..

------ Lag 121: '521 Boston 17

BaIllci~n ~S",.'vc)"bu.`Imv).

Buffal ..... (Sea (1) tb.la-)~:::: ... 75.710

------ --- 120~7 144936 Manhattan below)- ............. (See( 277,935

Ponsmouth.... -------- (New I.g1h,rej7 ----~_- P '3~ M (Rhode sand).._ ---- : ,4:7 .. .6------

133 7, Id-Allantic Region. ................. B I,arma .~ ..... ....... is

N,.-,k --------_---_ 145,840 033

b':Iae 11:694

Ritlkrrumd~ ............ (Vall,ru.) ---- 91' 107722 a, '1eI.wa1.),.* ...... 6'9.:1.7

S uh.."

_----_--_--

Ati.at.................. (Georgia) ; --------------- 5E33,'851 Birmingham..:: ---

467

Ur Columbna-... malau;ii;a; 372:10'0' G,s..Ib.ro.:: f.' 1 19,255 Jacksoar..

,ji I ........... (Florida).-------- 51121

'1322: 2

Juka-i

Nash,ill............... (Tshral-) .......

: .... 555,900 1, '47

--------- --------------- Clevelamd........::::: - ~S:: ((2 b.:*.*w~ Detroit.......... ..... (Michigan)............. 147 7,017

MI

Indi.a.p.111.... 711 Louisville-------- pmk.;,hii it... a .. ...... (West Vlrg,.ia)......... ":557 311

...................... ....... 849,599 589

Alawdes.. - C ic "Llb'll.'.) IC2:28(1

N ------------ DasVo'ines ............ 1. 92,378

~Wq,~IcaIn al,11In)_ 71:42241

0. h-_........ Nab-ka

St. -call I'01~ 8914 s .... Mi

. Paul--- Miralsta.) 14 L So. (b) below). ::::-:: As: '34

.S.Unins.1"Liji .......... 610:523 011

Albu

......

Austin as )

b 111,869 ......... :*--:::-- ~Sew(s`

Cheyenne ............ _ (Wyomirg)....::: 12 4

Dallas_ ---------_--- (See (f~lpelow)_

ISI

15

L: Denver. ------ (Colors D).-.-. 41 141

Little Rock --- (Al.kaL a.1))... ...... 2 goo

New Od-s.. 0 71~"112 Oklahoma CitY_--. (Kklahoma).... ...

Wichita ................ ( assal 96.27:fOs Western Rest --------

fA. k1l ...... 12':4520 `2

Helena ..... ....... (Monte "armful........ I 1' 882557

Los 34111~604 -1 s

1he ------ 41:~1011.

Po

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

land Oregon) ------ 4

'I (Nevada)

sk. --- 4':22'83 Re -Glity----------- S:lf S L 11

... 3,113: 430 is cisco... 452 F1

office 'an Seatt 15,237

Poor " III....... ........ '.It---- --------- --- 477

Oth -- ----- :::~-------- ...... ---

14,76,

Undistributed: Federal tax deposit, satins Gasoline Transfer~.d"' Go-curtml of Guam.._.... to Withhold taxes of Federal ..Play...... t ..-,isfie. fuel sad- Cl P ... oil-Air mg .-.at Force to' andE-aa1'v-y__ N d

exidential Election Fun "...---_------ Earned r Income Credits's ..........

-

(9) (10) (11) (12) (13) (14) (15) (16) (17)

139,419 18 664 949 5 612 715 3 9" 566

29,900 1:890:046 '541:975 437:095

409 197

4.13V lo'.85

210:t2% "' - IJ:ilSO 11N0711 "

'2: '1061 198.966 16,719 13,6134

1,315B2 195,70206 142.640 391

75

5,285 3447-9553 132,77165 132,588

12,732 782,911778 1251~128 a 40 1 1121:17 4

721 `2~2 2 43689

4 7 L17:4 958 131:11 sii~ 1, 7.233: 11,1 24 17,151 73, 71166:,,1

"1

475,844 2%92:552 22G,293

23:341S 35 622.111 114:1 1 137:9112

2,479

422 V

, Rj~ 78

0

701:1fs 39,007 10,165

1' 860525 54,224 44 43

L4,672 2,4 15 316,511 137,D62

If

0

1,787 145~ 4'0 54,082 14.722

1,144 133,6. 376 711 17

86, 3 " 638 '120

1, 79567 ..2 0,517 48,8072 I 311

1,973 126,968 19, 1 2 84

15 129,317 60,9DO

:7.2 2" 1'~.7~7 71 20

11,691 3.821~77722' "2 96 441 1: 3 OS2 71 1, 1079 Z ': 9isH 23~~ 12714

: 3 190:11' 4. 77-

2 1 7 3 7

'

1 293,577

a

a

3 65.7: 2:

1112 378~7 5 2 C11. 257,.6

871 1,21127:131 017 644,204

753

73,

...6 :309 6,239

808,741 459,573 18, 607 2,5121,046 as 6

2

5,167 04131: 018768 172,173 164,8

2,313 1' 149:89, 110 171 183 -

144 34

48'36 326,120 203,295 7,700

515 Ofs 84,196 3,974 34

L: 310 112:872

SO:..

6

~1:411 96~ 1 1 24 17 1

194,258 2,131~ 27' 210% 23233~ 911216 74,966

572 15,322 1,814

44 31':25"2 12,695 1,124,976 78,341

3

7

6 4317a1 632~O 35 74699 88,140 459

: 218 244,948 360 111, 7 7 1128

972 457 3

7265:019 38,472 35,139

1, 4"413 4K,70 214 71

zf: sg~,3 ,1'771:822,54 .541~ 1031' S51:1113i

11,394 233 74E

SO 2222

1,114 V"S 511, 2,54L'7 2~490 7L4

573 16,425 3,79

1,118 911,383 2404,337 7,288

1:,1,30 'a."' 216 43li

7 3 25:1.3 20': ?73

1 411 14: 1 '04 3 111 '357 :3 2a 17'2: '95'D4 508,531'8 356,7453

111 2011,2. 65,106 13,021

4"3 186: .. 3'"14 1175:938'90 1'715: 9"' 94 al 51 13,953 1 1

- 14,149 - -

-17

Total$ for States net shown be,.

so,: ,.,7 :a (a) California.:::::::::_ 72, 34 14 ,340 1,881,2V 1 141,155 114~133

13

..

3 It. 2 133

`

L: I

as '

~s

N ..... 568,213 Is S39 3191:

0 150,

~,b~ "snal 326

~(d Pe 23~ 211:71127 '65'81 s: 131 L 485,188 211:23~7 4 .2 211 216:25, 114 188 !: '343 216'46 33,711 1))Texas ......... ..... 337,833 1 89 1, 07457: a 5 881

112:631 2 3,119& fl :1 1~1: "12 126:564

14 54 890 51 '0413

-

4 -

78,935

-

-

131,719

-

1:749

a6 '1 ,

-

-

54,349

3,5-

52

50,7

!'

177,651

34. gi3

142,718

61,72D

-

45,208

-

74 4,

002

-

67,73 3

-

44, 4!

29,035

-

15,423

-

87,7ii6

,S337~5 -

43,16056

1:6537

1:111 676

3

-1

-

63, 30 3 104

7~, 777 857 442

1

360 - 300

391

131,957 337 2 4

2 - 314

2,660 20 44

- - 89

650,71s 2 5,217 I,M308

0'4 1 :671.' '1: 07'92 35'82

13I 12,1 1 431 L Of I IS 71: 29 3

9,934 31 200

- - 43

90,759 63 1.94

14,384 48 288

2711

13 21IS

14

2. 808 S37: "71 L' Is

1,251,043 9,933 2,4554

1 1,041 67'0C

1

111:130

~549,1587 842 8

3: 957 4 007 411

7

1

3

103 130

64

187 - 52

39DAI 3,26? 2,90

- 762

118,607I 351 I14

92

-

2,892 27 719

- - 7134 7,161 1,111 387 2M: 2 ifil 204

192,317 1,661 281

1

4

L~71,1.1 2,el

3.506 76019

-

1 4357. -

- 182

19,4 to'1 2 3'04' L71I~

1632~1466 IS 1,702 3,211

- 3701

2,011 UU- 4 79

3 so

112.85~ 223 1,0 0

18,836 T9 28136 2

1131

311,9176~1 1,196 961

5, 344

3

171,' 9112 35 1 -

11 878 '31 525 1 6 Ol. 4~ : : 4

0. 31, S2 2: O

'95 T4 7

31 '313 2011'~ '15'0 1, 981 1:19118

134: '10.57 1,3111 1,753

29,035

168

-3

Table I.-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areas77

Continued (In thousands of dollars)

Internal revenue regimes, districts States and other areas i (states represented I; single 118~ tricts Indicated In parentheses; totala for other States &hewn at bottom of table)

United States total

North-Atlantic Regi6n.---------------------------

Albany ------------------j ---------- -----------

"

a) below) August—--- (Mall n( n - ----------------

s111

a , _:_: --- :: ir ((0 beIs Buffel....... --------- .1a HBurlington. ------------- er.ant)c Haltund

Man

M ,U~ ...... (Sean sell 'h'a ac aften----- ---- - ( ) bal ---- ........

an

, ) ---

mouth ..... A o

as L; R "de [.a ---- ------ hild-,,tianti, B Real.............

NVT.',xT. ('~':w J a rsar~) Philabdelphia ........ ((SS:. ~1~ be aw) ....._:_:_ Pifts trials ............. 1411.1hammil- _.......... soIN h1naffmi- ---------- D.Is.ar,).............. Aut, east Region----------------

('~G'lalblasa5---------- 5--------------

------ (South C. Callarms.... - ------------ GreensbDf . ------ c,.r :::--: M

J:~Ik, Ij (11."'I'd.)PPU ----------- Nashville a'"n .. Central R,lizion .... ------- Clain C 1 n.dr -------- -------- leve an IS.: fd)) b:j01~:::::::::

Dstroit_ ~(Mrd1 jh.,~,a,)n~__:: ..........

1., it i11,a,,p,1Iix::

(Kan W.niju,k,)... AidParkersburg ------------ ----------

---- -------- Abadear_-- R'Rj ---------- ----------- (South Daleta)... ------

Ch

,

__

1,

----- ---- (Sea UowaT) Desflil-.i.'a ;~ -------------

M, w. .................

.11h G ::::__ la (Wit- 0 h (Islas ~Ms,ing, face -----------------

St- P 'I----------------

S~Iiaghifd:: (Se. M rr""ot ( be)..... -------........... b) slow) ---------

------- ScAullihwest Region, ...

(New Mexico A.,ru'Verque u --- ------- ------- (Se ~ below CDallas heyenne-. (w a_roff ....... ------ ---- (S(Cso1, m laelow)_, Li ,~!d.)) ----------- a c 0 atRolk .... Ileara.. 06s,:.,

(Lou, as)

Okl.hw he W. in ama City ---------- (Oki ----------- c I,--- Western alegi;~:: GAnchor is -------------- (Alashka).._ ---- ......

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

(Ida Z-a ln,.,.. ------

one ulu. ...... ..... (He Los Arg.les---------- :: (ASea -: --:: -- PhP.,*,',I IId- -------- ----- ,can.). _ ---_

Rare" --------------

(C,.R.r)-:

Slit FLArj a- Z:RY, 'C" ------------ ---------- San r.rds. I(Utah)

---

S --------- (Sea (a)

ret nriter)-----------

ff --------- ------- Puerto

-------------------- ----------------- F idstributed: .~al G tax deposits I

r8, abdicating all, and -exces

_ WT..",fitned Ilan to Government of Guam C,1.1 aid use, of, Foderal Es employW___;_::'_::'::: is eartriXaccaunt Fa a cue xes-a-tuin ual.nd ad Navy Preside ~iis ""'a' Fund Earned I

muce. Cred,Is u

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

4c)b~

h in.

(it) Ohoil Yisalk----------- --------

To.aa."!

n. __

------

Wines, mrdlsl~, att., less

Total

(18)

ic.ll.t Importedad

oms)

Domestic

byI Co..

(19) (20)

535

IN: 718

30

2.

IS2: 381

NO

77 11,5

fl

8,312I

4,127

91 0

481

I, 7fu

-

60

"a641

62

394

13,3:676 155,818 639 22,079

- 3.

2,304 7

18,962 2

570

11,334 77

ISO -

-

2

7

'4: '1 1133 "1914

1,4'81'1

9

1,783

368 1,69-1 3' 640

84 4

3,970 3, 3-D6 663 -

4,645

1, 531

99

.,00

10

7,6111

-

5.52990

410

1, iO7-

252

12 2,1~4

1,398

3;51 362

-

3,197 1,449- - 536 L:37 221

8216 679 - 10

3,475 41126

-

2,371 3,2-

29

-

400 10

24552 -1 85? -

-

12 1,7Z 358

1, 3W5'

351 361

126,0,3

-

-

4,1;9 121,91!

1

11 - 1 14 14 1 07 I's70 172 21 4,751 3 3 -

-

77 150 28

its, 5_68 1,698 116,882 382 393 255

2 2

Total. far State. net he- above

125, 152 1 3,519 121,632 2I 37.1 3

2'0 2 231 3 1 :3 1. 3 984 2 3.1 1,376 75 1

9 :4, 490 1,389 1, 3i- I` 4

Alcohol taxes-Contlmuml

. octuips. I

... Up Total

(21) (22)

Bear Us.

lancer ad Call.cled b icu Y..3.5 DomaStiCu

(23) (24)

4! 1,1423,614 26,603 1 394 137 59,17 15,666 153:122 4. -

- 1

7,

631

04 7,596 1

3 -123,6979 123.5ii 1 -

49 16 13 8,070

21: 6 '3 -

7

21,647 267

79:879 177: "S' 533 7 1: 413333 2: 34"9 -

6151:321 6

55,247 -

3

S31's 1'1:7fl 27:

2

- 26,973 I -

1 174,389 1, DD4 38,72601 51 13782,' 682;0; - -

-

48,48375 48,403 88

64,447

2

1,:53 394 553 221:441 14 141 T3 140, 058 47,802 -

9,135 2

47,780 61. 314 9457 9,453

1

an

10,008 -

13,812 "7"5'6 69 -

342,56 702 341,401-

0

7 3 571

1,

26 - 1.36 00

195,1859

64 195,015 3.840

9

.8 27:336 55 2"7:31,

z

84.467

it- 3.816

29,622 2 56

2

-

244,762 S

3

L, OTB

43,7DO 891 42,5i3 7 -

1818,080 1817,987 1,525 1,497 23 -

2,171,2 179 2,716

104 -

- 37 169,508 4,654 164.400 186

16 2 184

9 38 T5 3; 7

8193 1:127, 31 3. 12DO 24 7 71 1251 8 4,919

2

7. 4: 28 2 - -

26 533,4193 1,1223 31: 902 1, 473 78 5

253

3

-

3

-

109,670 :,31 111,11, 1331,343 5713 30 731 .946 07 123", 591 $6,93 27 56 868 7: 083' I

I

I

3 781 8j7, 132,14199

O'cup.. .1ias

(25)

117

28424

42

314640
78 s and by internal revenue regions, districts, States, and other areasTable J.-Internal revenue collections by source

Continued (in thousands of dollars)

iternal revenue regions, districts States and other areas- (States red...onlind by)slngle

districts lndlc.l.d in p...ritherim,; totals to, other states shown at bottom Of table

United States. tell] .... ------- ----------

.............. . I ....................

N.fth-Allinnfl. Realor ...... ...

--..... ------- -~ ---------------------

- ~: ...... :::,6;j ------- -.... ......

Alpgr,Y~------------------------- Maine ........ ----

~aireasc;;,seits"):, ---- .....I ----- Augusta-------------------

a --------------------- :::

,

:: g c~ 11. .....-- .......

~c

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

1

rooklYn lit'

BtH.ID..:: 8 ----------------------- ------

Cousecticu .1 Ord . ........ (so. (V below). ---------------------- M.nh.tt n ------------------- -::::,:: .... Portsmouth. ------------- :::: ~11%`dl 'I Ix`,'du` ~-.:: ::: : ::: ::: ...... Realan ....... ....... ....... .............. -d~) -------------

As

I

R;AUan Ic Al I it 8. D

Itionue ............

--

......

Newark ........ -------------- i

...........

............ Seairgin~-e?)a). be[-ow) ------- -

... h V"

Richmond::: --------------

Wi ing! n.....-----------------

'in at Reg --------------------

S

out

Atlanta h..' -------- --------------- :: -

C -.... --------

Goee,sborj:: 1 -----------------

1,agc"O~;Jiie class ----------------- ........ ::::

A

suit, ""'Car,) ----------------------------- ...- .........

1111h C11-fir - ----------

Mississippi).

Florida)..

arressee)....- ------------------ --

Central Region .... - ---------------- --------- ---------

Cinnimpit. ...........

Cleveland ....... -------------- h

Detroit... - --------------------------

ur

jlil' n 1'n

=li ---------------------

..........

....... - ------------

W Y ----------------

la, ill

-----------

M,

11 11 ----------- lart N.A D ---------------------- 1

Aberdeen -----------------

C ilgil ....... Iowa. ......................

Dh no,....... Nort

lebrasks)- .......

0. he ----------------- ~Mixxxiurl),

S Louls--.-------------- ---------- :- -----------

S Paul.. ... --- Sea (b) ti~ ----------------

ringlield,.- ... ----------- --------------------

Soof ........ 1, oew(Mexico ---------------- --- ---- -

A hwas"Refflo'- qu

---- ...... .... bl*w):::,:::: a) .. --- -------------- i,blutin -1.......... erqu!.-.7 .--

........ a A .,.'.On CD.hll.a everin ................. -...... (So. (f) knims) ..........

...... Dietsver--...... L ('ruibini Arlml.11 NewIs Rwit.---------- ---------

Orleans.... ------------

Oklah i Kan Wait.-,,, 111 --------------- ..........

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

..... ----------

Western R`,7j1;W.:::-

Anchruirge-..

ka)- ----------------------------------

lMd~l Sol Me I... ------------------

(

'

Halt. n lulu.. -- --------------------- -------------- ------ ---------

phOAqg Los all --------------------- :::: (Arbors ) -----------

an! ------- --

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

Portland ........... --------

(Oregor).....-.... -----------------------

Ne, ---------------------- -- ------ ha)d.).

Rema.

.... fU 0

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

-. 1.

----- (Sea ingtors (.5 ...b a In.- 5 ---------------------------------

Wash sesttl.~ ....................

.....

.........

----------

Nice of International Opsxrat(uns.::::::::::

P erto -------

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

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

Other.-................

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

Undistributed:

Federal tax deposit, ......

Gasoline, I.Vicaling Oil, and O.G~,- Fl A c ........... TransfatledloGoliummyti) In........ ------- ------------------- ........

Withheld taxes atiountlar a'

1, Cl..'img identi.1 Election Fund"..... ---------------------

El'-d

Income Credit," ---------- ---------------

Tobacco taxes

Total Cigarettes u

chramil other 1,

(26) (27) (23) (29)

21408 425 2,45D 46 913 38'03540 2: 524 '13D 8

84 74 10

-

27i 279 14I I!

-

-

2ig 1,25 8 lis 15 1,757 988 -

-

-

-

-

638,976 626,754 11,769 3452I3 - 10 0 90 465 363

1 11,743 11,743 3

626,4533 626,39-0 12 52

-

-

-

1,5i4 1,295 490 1 291 032 12,98 4

69:785 68:895

4 90 7

4

1211, 6

1

5

:275 1,2

77 404 207,973 1,206,592

- -

7,044 511 7,64 619 6353 '1 20 3

502,955 500,425 2,497 33-

559 T4 594 1

2

3 1

-

3,943 1,403 7

4 4'

346 496,481 346 97,933 189 189

7 i75 292 -

-

276

-

-

9 211 230 - -

zo 8 217

-

-

-

2 274

--

-6

38 133 2

-

'3

97

1

36

1

-

21

11 7 260 3

71 10 260 1111:3134"

-

-

Totall, far States net 1,..n above

(a) California.... - -------------------- :-

(b) Min-l- ..... -- ---------------- ~,d,,"- 0 lorl -------------------

his ------------------ IF) 'rurnsyl T act-..... ----------------

mul- ..... --------- ---------

1 37

"276 68 130 99 1,1

1,987 559 24

594 -

11,2747 1 -

11,2746 5

30 8 17

-

11

Table I.-Internal

Continued (in thousands

revenue

of

collections

dollars)

by sources and by internal revenue regions, districts, States, and other areasInternal revenue region, districts states and other areas 1 (States repres;nted bysingf,distri,ts Indicated in parentheses; totals for other States shown at bottom of table) Total

(30)

United States total ......... ------- 6.555,601

No Ib 484,715

j'6aicw)- --------------- ------- 4,351

A

1

jllila .............. 6 785 (visserithuselts)- ...... 60:747 B...kiyc-

.....-:::::::. -(Sea A" ~c)) 532':S64.. Burlington no c~jj Huffn1d ------------ 2,555

Miurbattat', ------------(So. (1) list 193.910

mvjh, ---------- 126,476

ports 711 P it, :-!(Nb1`d~Hjmpx ) ----

:.-

,land)

.

no ~ 9': 4 MId'oZlarn~i'-h~-.`j;jj:.: 85 Balli --- ::-:,1Na1v1nd "8 1': 3' 86,025 Newark w lerset,).. ------- 37 Philadelphia ............ (See 3.016:13 liq

'

Pittsburgh ------- 3 !) -(2irri'r%) ..... 9

S

W,mliond, - -----(Delaware).. ----- -- ::::

2

1~5193 4 7

V

------- ..... 213,701 712. a Rea.mn.

to. id ------)-----------

Got

23,7:,933' 1

aI'm iub'!h. in: ' :: ' o'Di 22.572 C 13: 21~32 Ink.n. ---

14 ~o`-.:1:-.-::-'.(Mjxsixx,PPi)~ --------- Jotkii.evile ......... ....... 21,323a

Nashville --- (Tennesse). --- .....

Central

..

1,311

CCisciiint1111!, ': 7-9 ----------

3

leve!and............ -(See (d) below):: ... ::-:' 725~ !2741 Detroit,. ~ .............(Miclulan)..........-:- 4.11: 1 1~1 Indiang .4 holis ------ - .(Lrdlxna)-...

....-

it 11,2:,1851a

Midwest Regin ......... ------- 862,202

Aliprdleer-- or ........ (South Carol

C To --------- -(S.. (b) bels~0; ~.,7:7.17~

Fas oines....... --(I...),6,~; 35,107 la~10 M ------------------ (North 5,686

G wauken.- .... b --------- 91,070 Sinatia.o 1, 72 Is. ':3

G

86 3

St;,P 7 177 b) I'll, S-Ath-elt Region ---- 1, 9111, 2718 u -.... A[ mi,urite

Ch-1 In I ------------- (See(f) below)........ L02Z:62R

Dallas 32N: 0'317 Dirn,ai. 45,493 Litl e ,'cV'::'-::-- ~A'I'2' ,

Okl`ah`.mxa'C`ljj: (Lur withits ................ (Ka

Western Region-------

n as)

-- .........

Anchorage.. --- - (AIaxka)--:-:-:::--:

Bc`x

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

xjrp)~;)

Helena .....-

or .

Los Anft-i'i Pros (A,

an'j ;'

Re

Fort (0

"

...... ..... : --- ::.::-: (Nevada) --- ------

Sa'n ---

------------- (Washington). .... ..... 0 ffice o international Operations.........

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

undMllb.tad: ..............

IG~dl I'lputi1~1, c. R a

sr:1,

.....er"' to

min

withheld t of a. ----------lax,, G71117d aorp I es---- Clearing account for Excise taxes-aviation fuel and O,,-A

*

F,

Preside r mc, and Navy

ntull Eli -1

--- .........

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

Ea ad I

in nerm exticin F. it

0 C,oditsT......... - ....

i ': ... 318,321

7,908

141

32:87154

3711:5252

71,

4s:

00

8

2,541

2596: 401938

102,053

281

281

Manufacturers xclse taxes

Gasoline

(31)

4,444,484 2

13 069

3: 745

5 954

51:299

10,704

25 820

2:293

1,7:910 8

760

24

':4 B 2'

11, ~'72,1 29,

7

7"2:77'1

21 5

17,560 70' 29

111: 41

2.S: 9'a',

2 781,

':

7 6

44

13' 739..

11327: lg

AN137.

lj~,2~271 4

131:4142

48

597,3445

6, 39

32141: 835MI

A, 123.

6,7:,603

86

7:

317 C'74'

1,894,26,1

, I,,13

612

3.B,

811.1

3 103.

"'

.

'7. 1 7

473, 23 5,5511 ing :78, 13

3,038

85

:098

30J!,2953 1, 1,

960

2 473

4: 241 61791D

10,54

2.

Tims (wholly or In part of

Lublic.. ,, rubber)

er lubmi Line if, and tread

etc. rubbar

(32)

105,227

1 34!

239

4G

9

32

930

2

2

11.3711 62

B1:14' ig

1

35

10.2

961

135

-

L.1

5,4'3

'112.

2:1714~

7262

5,514

7

13

11,393

11

8,036

125

54

226161

1: 3'1IS1

7

9,179

L

3

2

8,5

34

370

-351

13, 5 84

12' 9,

7

1

6,127

71

7,7381

30

-

is

(33)

846 313

189,34D

63

3 1813 1 15

22 7314

125 20G

30:858 166

129

11,975

49,931

at

in

20

23:2

5:205

026

12

121.071936,3,a

12

'~ '2

2.688

4,02

141 057

1031~355

44:22G'

6,068

1' 629139

13,11D '8

B, A.'

4,46271

115.1

2.f6163

5, 45

628

54

1, IND4

17

11.305

435

69

-24

780

.041..

4

;5335

31

27,694

22

7330

31

1 51a.'

'29

2555

ITS

Motor

'010.

chd.a,l I. iia,

ac pans and

(34)

998,779

18,567

389

102 1:121

91

3,111

16

204

3 663

151

760

L23,017 7

74

10. B3al),

01. 290

1:537

139

36,593

"'.1:239 M

8,,38355

6,323

1,266

3 1

4'31

107,060

2,141

58,

'34

321, 83~1~1

149:195

2131: .94)7

1712:28'N

5,011

367

138" 119

006

1 1031a

3,762

35,575

78

1 44'

14

10,

F

351

3: 910

2 118

4:5

154 1

1~11214

164

9

590

114

314

09

20,588 3

6,710 9,623

16

9

74

Sj165

0,43!

Totals for States net he.. above

00 183 b)' 550

125'a4319 c) New York--- 207,5117 2

232,039

1,

-------- 171'5: DIN 443:31 9 Tax 294 96

13,865

11: 013..

2,353

11,:412

77

21 2 6176:75174

4 '9259 2"429 N -10': ~'71' 1 411 10, 7:2 77

3:

7sa

Otherlt

(35)

160,878

62,395

154

is

7,299 1

179

111 .7f

45,658

6,264

1 231

67

14.38892

2

3~4",58

1

4

4

:4 73'

94'31 2814

1,2 3

934

1123

2 14

35

1: ~.4

1

1,887

2

1:3001 23

1: gl~167

6,998

152:'1'1'.

1, IM6

744

'2

6: 83

1

1 28

.32

791

7,074

1: 355

819 211

1

025

1, 625

52 2

"1111

1,,062 III

37

499

634

34

6,800 1

254

1

21

4 477 71

49

412

1

Retailer, eadrin taxes

Co., Non,

ercial

Nor. aviation

Commie'trial Is, fuel

other

n

Total irisOtuiral gasolhian a

(36) (37) (38)

523 677

27,145

1. 395

904

31' 813 1:589

7,113 n~

a: 2

2517

1 479

' 724

58,887

4.842

LI:2 9

313?

22,244

71:

'525

63,8124

84

7~ 309

I~4:~00081

14B: '13

072

11,395

67,3523

252~307 it

1~1:7,, .4~

10,895

~:~4

14' 8

144

282'146

9,172

18~1~4

361

4,421

13B:78

30

7.91

121, H"42

442:4302

3. 1104

30,38866

1,2_Ga

"

a,

Sit.3

14,171

I3:131 696

666

23,,063

53

1

307

22,895 7

280

6.105 11

2

9

7:481

35.458

4,888

94

10.954 649

35

49

104

85

i1a'D

'311

22

18

730

70

23' .0

3

159

1411

2.050

2

US

291

2'

a

134

W6

451

970

123

119

27

2221

at

4

..516

12

191

191

17611

188

221

321

120

2,493

'38 553

81

423

226

313

303 646

1,297

181

102

101

32

672

277

1197

16

67

673

22!

31,289 2, InE

16

04

126 05

1,127

508

608

40

152

4,835

lie

UNS

2425

1'3 0

997

2,965

7,4

2 3'

519 10,

143

462

705

2,712

453

613

M..

225

3,2

MI

51 931

183

55

390

3!9

64

652

66

9,494

141

3,

0

91

all

1. '7111

220

1:269

420

ago 140

4,

148

115

112

1,7'9'0

302

419

306

71

1' 192 33!

84 7

711: Il. 1F 5135:277 312

14,894

17~' 335f 11, 41 E?

1 548 35,575

:844 72,690

1, 112

316

242

261

976

2,11111

06

553

5,191

79
80

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

Retailers excise tx--Cont.

internal .... mu, region$, district', States and

other areas 1 (states represented by Isingle IN,- Mosel and

moto tricts indicated In parentheses; total for other special

States shown at bottom Of table) fuel. Other -I

(39) (40)

United States, lotal.- ~ -------------------

North-Atlantic Region.. --- ........ I-;------

IS 0.11 1w - ~ - - ~ .:::

---------- A

oNI)

--

----- (R~".1mor,

Hartford ectlitit) ....... .......... (Cum --------- ~:~

hainmNI... :::::: - _:_: ~1,.e.l N

c 'ir

Providence::... ........ (Rhode

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

Billions, 1-

Newark

Philadelphia:::::::::::: (1 ~e)

So.

d) ir

PiRI ....... ------------

Wiliningto .............. (D a a .,a)... .........

Southeast Region.......... ..............

AtIrint .....

84immAhri ((A 'la'~'.VI-)------

Criltnobt.... n:)):::::-

Go-lume. ~M.rtth' C`.;.`I~n

Jec,k,.,...

jiuck.-H --------

Nashville ........... (Tennessee). Fir

Central R.gle..........___ ....... ------:::::::

Cincinnati ----- (See

......

Cleveland... (Sea (it) below)' a* ...

Detroit ..._::......... 1

---------- Indianapolis,. ('I`,1d",n'a

Lin.l.,his--- KyhjrjV~ky)........

a

::: West Park xmug~ niiii

wast Region- ................ ------

....

Idb

A dean ... ou

::::::: (('Sea"(b)"b,I.,,,)_ ox) Or

-------------::i:

Milwaukes..- fitW', x`ft n'2 0 1 ....

Lis flibralkl) "I, -------------

onfir. -------------

I'll ") ...)--: S,,i S (b) below .... ::

Southwest Region ---------

Albnq...qu,---

fs:.wo b.I.w)

:

Austin 1 ..........

Cheyenne ...

Dallas ......

Denver-_ . (Cut... do)

Little R.k-.

.........

i-----------

New 0,1..n,,,,:::::......

Oklahoma Cit OkI.hu "'i.....

Wichita... ... (van.$.

'-I'- jAiiiii ................

Boise.__ .....

I.d

Helena .....

II1.ki):

H.h.ltl (ir ........

An"`!.:::: ....... Ari,,i -----

P.Mend N 1, xyx~n

Reno. . a)::::: )

Sell L.k. City~ ......... (Utah).)..

1S%Ukr , Trans,* I- :::::::: S

........ he ...........

Office ollitntermational Op rations.. ------------

P erho ice....... .........

Oth................. ...........

Undistributed:

Federal tax deposits I

..............__........

Gasoline, con FICA credits It. lubricating oil, and or

Transferred to Government o --------

Withlurld.t.irry of Federal employ...........

Ciestring oil. jr count for Excise taxes-aviation fuel ani,

still Nely

P... tio'cRoc ton unj_~----------------------- ld.nt .....................

Earned Income

California

Ohio

Pennsylvania

T ...

481,427

23 635

1: 295

3 '1'.3

1: 3

7'6'8

2,162 gg'

4

'11'7

13,32"2

4 654

7:

90

2120 09861

7.11 g 7

58, 91

.79

63'. 770

3:9918

15,004

~2

1103 7'71'

4,536

71

":9'38

140:040 59

2,1961

792.5204,

27:123

1:711 820

8,380

3,8837

12,5937

1, 9,6

116,137

4,115

373,842 78171

211:6

17: '13"3

S'2

12': 3

8,398

16'

337

2:78

2 3N

217

2D, 433

6

7

5 992

2:

7 343

33,592

4,325

84

84

Tot.1

(41)

8 3,325

'

5 790

129

- '24': 276 11

2

9,633

021

1

3,2: 602

900

24,266

211I~543

721

971

368, U7

1'4'0: '3'0'1

.14~274 3"

892

9

-

8

-

2:434

7

113

': 13~

27 3 4

97,908

152 '0" 5 0

2113: 24823' 19 443

2

2"7,' 621

71 2

:4172'

45,290

978

7 it 034

- 825,039

- 1,899

384,785

9,958 2,082

37,185

- 259'440425

- 74D' 014

- 14':268

- 255,359

1,5999

41

'2274

76 667

go.528

Io':645

1'1: 35"Z

- 459,681

"

:7

2 299

16"31~2Is 21' "1as, '41.

9,920

2,240

179,298

5,533

MI-Il.mou.-IiI....

an Telephone T,.I,.P.r- Use of I.arit tolItY I; tation of national Tran.,partirtion , slFto

par property

service. b'Yd.-Ir "fla'cNIINal by .1,

(43) (44) (45) (42)

1 6% 736 1 110,613 70,488 154: 71,101

297:500 123,19 18,854

2,349 3199 -

-

388 241

71,1311 41

116 7' 'a'9 4. 9012 5,262

7,412 17a 345 25

221 10 517

1,, 751 3,97257 14,052 3421

365

- 34 23

231 7 71 3,8406 3J: 14

33:321 8 3 49. Eli

3 40,183 2,49996 1,852

72:7, g"13' 485 5 31416

15 046 213

34,507 149

1 80

1,12 1,~ 314 17 13 112

773

4

411

1:

3

got 652

92,376 160 45'

.9 20 T8 568

.,I

51"

117

27,473 .!53..... 13 3 11,9324 3 '19 13

1 5.5548 I~ Do 50 4:

15 791 10:26 915 57

760 - ""s

317

IN: 01849 327 (3*3 3,4527'

:5,1039 2125 24 66Is

5, 06 16

9,073 3

3,65" 381,4154 17,064 12,657 3

92 5

7'1~161 262,2149 -

to

J 76 12,50 8U

- 219

7467 31 197

27,07 5 174 4

42 75

11: 76 15,617 74 8,9108 1 1. 2,489

29

3,071 42 2,754

389

24

A1,38 13,944 2,651 3,422 a

1, J9771 141 82

29,3 66i 8292

157 53 -

91

12 43 1,709 1 1,713 17,14

1

18: 7 11116

66,415 414 38 8 2:423 7

ITO 13

1,379 at - 22

113,S81 278 3 26

11,99 24 ~s

5

"14 2 124,740621 2 1 4,041 135

83 37

347 96 - 256

61 4: 111 114

4'1:7755 93 7 7, 166050

"~Z

92 49966 37 707 1 132 1,6158

go 4

1

153 46

Ifil 5 59 3,245 2,046 198 6 57 7

"46: :

igg 82 217 41g

24 31, 913 2.1.

84

24 1,975 2,625

Totals for States net shown be,.

14:1191

12,673

21,1116

33

66,523

3349,196 190,964

99 asQ: '531

: 522 206:831 112, 429

021 98,749 78,277 1:157

31.6 71: J8 1 697

125.2 432 72,125

9,53

1'2: 162 105: 931

18, 8~ 63

677

2,3705

2,35861

Table 1-Internal revenue collections by sources and by internal revenue regions, districts, States, and other areasContinued (in thousands of dollars)

Internal revenue Ixjl districts States and

other areas I (States represented bi single dis- tricts indicated In parentheses totals for Other States shown at bottom of talel a)

United States, total ................

North-Atlantic Region

,,*) .........

A ------- Boston--------------- (MassacG;t[is'):_

~cl)hIe:o,*)- w) -:::

auto B

Burlington..... -------- go.n.,igIc us _ .:~.... :::

Hartford I-------------- ----- Manhattan- Portsmouth. So .T.m"I'm2r --------

MidPr.1d,ncN'---_ (Rhode Island)----- --- -AhII,.nr R....1is"

(Maryland D.C.) Newark ---------

buonof his-------

P

Nsam

r"h_

Rich it Phil p wilininet ----------- n---------- (Dlllw,r,)-

Southeast ~ Olson

1 1

(='a~`O (Alid, 'xC --------------- )__-----------

C lumbia...--------- (louth

Greensboro...--_,_., ... (North C. !;I Jackson. --------------- ~pqiis~'djs.~)ip,i)------------ N,alle I

Cejtr;d Region

Cincinnati 8- 1 ev) ---- C 'veland-_::-::--- ~~'d~ a

Datert... ------

sy 1'ndci'. na' Loni -------- Kmr.cky) ----------

aiPuletlIttri ------------ West Vijsjiifjj

clare, Alimiturn all"..... ....

(South Delete)...--.--__ ChIcV. I----------- _ (See (b) below).. .... ...

FDes i---------- (to..)---- ------------

'1M ~11------------- ---- (North D,~,koy)_ -------

0 1 .,aukea------------- (Wisem, In r)

Stnnol~---------------- (MNI ank.)__

St P--!'-::: --- - _......

ull,1.hl.linill ------------- (See (b) below). ....

Real........

...

Air re,qu ------ --- -

Au'lu" (SixW Chey,"n~--------------- a

(t) below)

Dallas-"!:::::' ....

Dan ...........

Little Rock ....

I111ko.rn, A,

"s

:::

-_

-:::: ... New

h

Offer, Ixj.ms,. Okla oma C

is In. --::: -------

(LOok'l -...

W

W,ch

it .............. (Kansas) ........ ---

astern Region.-.

Ahchoage...._ 8 .. 1'11111k,)

------- (1c. he) -----

Helena----- ......... g,.wu, in.! 1 _:: -:: ......

------ 111 ak.~,,.,!a, : :: :

-

:

::.

(AS- 'o0)ne)below)......... Phu

hd~ PONs Re no ---- ------ -

Sell frike City....--- --- C, (Utah)- ...

U So. ends.

'(Z`xbfnjg'toln~)~!: ... c.". I net Operations... ... Pror I Rkno_'. .........

Othe

ndistributed:

Federal G I U. deposit x

lubrice

------

G fing ell, and discuss FICA credits III_

Withfuldtanisal ad" "'

Clearing accouFt for Excise uses-evi.h., just

and Oll-Ajr unctand

Presidential I

I.,un

Fund I--

Earned Income Credits Iz. ....................

111) NI, C1 itO,,,n

b

.

New Yo

.

I

_

k---- h

jcd

open

1) Texas --------

Coin operate~

avice! 'n

(46) (47)

7,30 1,049 0

9

166

1

146

14 3

-3

-

6

-

48797 3

9

40

33

1, i0_7

I 7

4

1945 35

115 30

1,3825 63' 279 131

39 6

3.1

3

6

42 49 11 9

156 31

...41 1162

1! 6

4

i . !

94

33 5

1

26

176

15

19,

302

3

1177

19

4. 34!

17

94

69

2641

326

31502

12

R

119

51

44

69

47

3

Miscellaneous excise te-s-cont1hured

Wagering u.n.

11

1

11

1

4

4

1481

1318

4

379

.hill...' In, civil Investment

.it Income

(48) (49) (50) (51)

6.6371

08

25I 3,905 104 2,216147

357 17

2 3:

5

8 18 88 1,093

913 101 3~ 2, 4446' 7

17 4,043 1.857

191.114

499

513 14 208

25 2 183 5 29,257

1'129 9,840 -55 3,550 4

1 6,327 17'5' 2 IM2

1 4 8

8 '.'40 142

I'l 94

IS5 114 41 7

a ~

1547

1 ':7"9

2 895

11ho 31 4 05

IS

1:73 58 4 12 741 11, 0 1

11 31 4:1821

3 2 29 '20 64 7: 71" 3`1 2, 1DO 39 2,157 81 58 199 :216 2.2 1

1 4

1179 1,138

78

82

9.6 49

32574 35,155 1,078 575

4.698 150 088 51Is 210 ':2 016 9 7..38 431 4,374 116 17 24 '3: Ost

618

350 127 1,370 46 136 179 11,01841I 7,021 11,659

10 A 91~017 3,122-~ 3.701 12 4,81 127 11I

1.4167 41 14

1,612 2 3

102 36 102 "1'94

1,' 13. 3 1: 4 9a1 '132 2'1 466 Ni

5 2

3 558 111 '148

3131 371~026 111 2,67774

9'06279 34 8,123 601 4,211 - 847 55

75

133

639

4

56 33:028

312

94 1212 3,233 198 5 4 234 591 272 1,7518 364: 3,6157 227S.

74

184 447 12,342 12 50 6

1

a 295 35 64 303 3 !:'24 55 3 ' 11 3 3 7 274 12:'1' 719 1,2726 4,01943

04 1 5,109 2 ' 241 4,702 555 1337 22, 1,583 55 6, 97 14 14 111 2

J, IS. 42'1

1

6 49: J7 as

501 to 47

9 47

Totals for States not shown be,.

4

8

4

36

5

5

Private U,,,..thl.*n Us. .a Inundations net

23 603 22 93 950 270,443 2:620991 25,347 162

1~3 69

51 20 127

Other I-

(52)

Uncles I.

find

excise

fee

(S3)

64 785 196 182

18:434 221: 559 3

69

35 -6751

1,08

1

2:

"

13

495 27 787

18112 -20,520

-174 151:01305

359 -2,922 3 -1,618

9 193

3:301 -_J1:'5&17'

3,690 -52,771

5

39 1,99 61 326 -11.073

7 393:~111

233 -4 28

206 -131.677

1:190

20 8 31`9

a 122

':

324 ..

-_13

59, 994

-33.649

590 -3 7,610 2 523 lag

a

1:

034

568 -222:12,13

944

032 - 1311:304 307 -.1,7:840

9

131.1

944

56

9,089 7,6171~1

34 -

6,00 -56,304 61, -399 74 37

814 14,373

5'9'3' 101: GEN

1,225 007 179 --11,e, 789

8,041 40,929

46

3.53136 --741: 712

-302

23.1 21 "3 JEl: 03 7.1

93 -11,23

537

_7'

135 94

go

714 2437 -4,608

a

50, 6Lg'

so 112 698

"24 -624

100 TI: 107

4,646

12

111 644

13S 22 :G,6 32

_24

991 61 37

12:11,

-

21

14 -1~ 4~

35!

a'

12,

73

353

14,149

-17-

-

3 83 147 6,746 106 115 324 12 1'74 3 3'7' 6,181 -73:093 47 13~:J2~1 2,.2j 1, 0'20'

1

it, a 5,750 246

-3

J

2

Z6

315 3.04 1,602 3:7119 DO 1. 2,6 1,5 1, 113 5,903 117: 6,069 4'

'. 32' -4 771 4:

112

75

81
82 83

Table 2-internal revenue collections by sources and by quarters

(in thousands of dollars)

Source of revenue

Quarter ended

.role, December197, 31 March 31 John 30 September0

1978 1978 1978

Grand total.

: 3" 776,319 78, "1. 191 93,329,599 130,244,347 97,761,252

=ation incond 11: 11, 141" 13Sq:I11 101 12:21,721:1111 11, 111.1as 13,710,117

ua~alj come and emp!ly,Cent to xes, total --- 3~1,D:

",.3

7,D

3":531 7S 71 st,

12,1:~1,2~3 7.7: S71.1: V11,2

1 ncere: his 191 viffilbeld andSEAxIx...........

If 1,

Ancen 917,714 11,442,627 30,D3

width

aid and FICA"' --_----------- 211:117

A

56,111,111 12 'III 111 11'713 111 11 '316 121

Red ... it stimereent

09

:231

~II,

241 475:877 507:704 516,409

Unemployment insurance 2:

'

2; ~1.1.1

3.~,

,

"

423~1: 7.11 13041: 1." 1:~10l 41D

Ears.t.......... .......... ............

5

112

32.,

117

3 '.26,

58:760

................. 139,419

if

.31:114 13 11,999

Excise -------- ------------ 18,664,949 640,943 211:4107 4, 714 41977 08

Alcohol taxes, total 11.......

'

112

..

1:

2

3'

:7121 467,1077 1,352,729

1

557,:127

Distill is 3:

999~

H6 in.7 7V

J~

a43 N42 622

Win ------- 189~535 4 4 43,963 11 I'M 42:3112 4fi,:1 47 11

......... -------- 1, 23 61 284,006 316,136 B6, 54

1111

Tobacco taxes, tiiiif~i'22:110,:411125 41102:1 16 (RIS: 4114 1111:,2311 1121:71,131

40

7.3 67,0 72

Cigarettes 13. ..___ 10 607

C pr,I ....... __................................... 38,05917'1 :1I2 ]:7

11

11 11

O~ rs~ ........_ ........ 4,4308 54 23 1: IN804

1

77

Manufacturers excise taxes, 6,555,6811 :127

G sailind, ....... ------------------- 4,444,484 41:'71011:1.4 "4:1 86111:00:70 N N211:"161: 111

1.06heting ditill! .......... 05,227 27,746 25,442 24,526 27,514

Tins wh

,,

y in part of tubber), inner tubes, and tnad

0 111':

3 13 21 211 117:371 111: IW3,I III 41 rubber-

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

779 ..: it. 237

983

24, .. :?9D

Motor veh

in

IW3' iWis; is-, b'ad'i e's', paIts

aoit 3CCOSD

r Ias. 99

Other ". . lll:,I;l 2,1:21 19,795 29,~509 87,22.71

Retaiddirs

~2I72

3052 125,857 '28, 17

1

40,

t

Noncomon:rcial ancomm aviation gasoline3 397 1,829 3,340

31~ M, '13'7' 7:

7

76 6,7878 689

Diesel and special motor fuels-.... 481,4278 117,878 115,6758 119,702

1

"iI 'i Net other thanD"2 28:173

0 haril ---------- ---------

Iscellaneous excise taxes, total ................ -------- 1, 11:

7"" nal M:520

M

74

`19 7'1-

968 991

1al%,,nast,," it 1,11 t.,,p, w,ile,, ;~,xcbix a.r ic....... 1,65 736' 425:06314 377:320 389:932

T

's next ona, ands I.

.... .... 1,

1

R

Use 114:712 I~ I. 171:7" f5 113IF:

I1~1 1~181:236

at 10:

'

5

international air travel facilities- 7D 4118 724 487

Transportation of property by anr._ ................... 64 Oil 3 15, 207724 15,87 167,,209

151

1

lol"-,p,,,I,d it indles ............1----------- Wagering t.xcg~.1ddng 7~ 00 2002 65890 39

Occupational Wage', .......... ...... __......... __ ----- 61 101 197 690

1'048 '~427

------- 6,637

gh,ay dentor vehinlea .......237 '~137 6 393 432:274.6' 3'1:47'2'8M1 MI

Us

o civil Inc

art.~ ............................... 22 : C'N 545 4,201 4,648 3,111

12:~4161 5~ 11 11 21

"

17

5 fpi~

Exempt organization',

I ul-- ---------- -------------

5SII

IS

Other-'............. 145:072 .

12

43

12 60 6,4

Unclassified excise 196,192 76,264

_504,

565 453,061 -228,578

Table 3-Internal revenue collections by sources, fiscal year 1977 and 1978

(In thousands of dollars)

Sources of revenue

C.,p.rGrIdd .for 'econd Intel.

a

III sources ...................................... .................... taxes, total ...... ..................... .........

'x

shortR on

Ind,

viduid men

me

-

did

h`gd.,_pr. i__

-:-- :: ....:: ....

: ......................

Income tax not withheld "u`v'ECA"r1t'1"1'~!' -------

Income tax withheld and FICA

xII

Unridephe'resn'T'g,dan 1,11cad retire art, I

:: ...: ------------------------------------------------------- Estate tax ".. ..........

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

::-:--------------------------------- -----------------------------------

Ain

orII

a

.....is,

D

0911ml

"i"s fi`xn~

I.,.

led c0l.c.

Cu

I

Excise

is ----------------

* ------------

* ..........* ....................... Domestic, $10.50 per proof .If II

vm

d

be

........... R"tifickholi 30 sets par proof gallon 11...................................................

Occupationa, taxes:

Nonlieverage manufacturers of spirits, $25, 150, $100, per year ..............

Rectifies:

Lexathen 20,000 proof galf0da,$110 per year--. --------------- ...........__.......20

he so

220 pary ..........

R.t.[I"do,,Pl,,'(fd',,'t'i',',,'d rpr 'flt,~'.

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

wines, and eer~, $54 perjor...........

..........

Wholesale dealer (distilled spirits. wines, and eer), $25 per year.

Manufacturer, of stilk. $55 par yea ............ ................

ggdal, Psnalties, etc --------------------

I ...... .............................

Wills or cndpla.1, manufactured, $22 each ..................................

;

........I ......

IIras, cordla d a.I etc., taxes, total

----* ---------------------------------------------------- .importe a (Col S acted by Customs, rites sa; ag domestic) ...... .......... ;;S,

or92) ... .. Ilon; sparkling

w4 ;.f ficleY

rinnhonut.cl wi

re"

onc

Occ

e

national taxes:

Retail dealers in in,, or in win,, and file,, $14

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

0 Wholesale dealers in

wines0

'i

i wines and be,,,

5 per year.........

......... car taxes, total

importedc, (collected A rd, by ;ust

0 res,ghlsame as domestic) ....

Dddnalt~

no,

0 per be 31 gal ons ------ __--------------------

I ------ .......

ccupa'01 fla.era: taxes:

Less than 500 barrels, S55 per year_ ...... ------------- -------------- ......... 50 q barrels or more, $110 per year

Retail deaders in

Whbear, d $2.20 Andbear. $4.5D524perPer month)! year -------- ........ o csale dealer I

in beer, $123 per year ..............

Tob

c. Ia..

total --------- -------- --------__................... ................

Cigarettes, iotals---------------- --------- .......... ------------ ..................

Small .2ClassA rthousand ......................

- -p p~;rrinvji;tid -for -;eiiih&~i

Large

Is as

Bi, 3$84.4poeper I h

cul.nd, except if over 6% m0i;i Ini

3

"I

action there"'

......

Cigars, PlIppriyondt, ... __ ------- .................. ---------

total 11-------I------------------_ __------------ ........... ......

Large g cigars, R total--, it ----------------------

Class .a,

A

( at., IraI at over 211 cents each), ;Y,;rx;d.

2,1 .. ,,.n

or*

,6, c.coms each), $3 per thousand.

........

'

(OX4

Cox". I r

db Class C fOy iwe

eac

), $4 par thousand.......

ClassD (Over6 cents, not over9 cents

each

), $7 per In..... d_ ............... .........

Cl

333

E (Over8 cents, not over 15 cents;%,h), C $10 par thousand ---------------

h),$

15

hounsdo p.rthnusand ..............

,c;,',','G '2D ','~'n'ts,- a"-',th3yes2Ip~cr`i' it ------- ..........

Wholesale pq

" "'To" 'Iran

r thddd~,~dl, 8,14 Wfidix,le Price or. than $235!2'954 2p9e4, tphecca.e

20 per thous he

Small cigars.

7,

cents per thousand.

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

is

1%P,o1d1gd ici'ma: atc)...__....... tube, (C.11actad by

Miscellaneous tobacco ------------------- --------------------------------------------------------- Cigars to papers and tubes, paper one-half I

1977 1978

358,139.417 399 776 399

60,049,904 55:380:145

60,015.704 65,344, 150

34.100 35,996

272

,

311

3'~2

2:~3,197

1

7

4C,18I 41

51

1 5' :37

222,929,22G 253.617,181

1,908, 803

2

13

1:~1411 02 2: "21:

0

3 64 141

460 242,080

1,775,1166 11

9

~4,

17,932,707"

1$,

664 41

"":

16303 191,2:576161

3,827

A

':

9

689,8153

702G

2

0.

3, 103,140

3, 5,: 11

18.326 21,467

93 IOG

19

A

4

1

14,7131

,

35

1,0715 1: 0714

2722 991

"I'll, ...

3

27, 131 31:1'76'

152,573 155,818

72141 40

1,31122:111 1.413,6(;4) Bit 2 `

03

1,372,153

1 . 3":

137

12 13

2, 2110 2,237

640 624

2,398.501 2,450.913 12:117 3 111 1 1~1:411

57:

~Ed 2:40 'I~

194

19

37:,1.2,1 38,050

IS 36.794

131 1326-

1,528

3,960

904 2

48

1,938

"1

33: ill

111

33

1,42324 1,22530

2,460 3,14:

1,3931 1,291
84

Table 3.-Internal revenue collections by sources, fiscal year 1977 and 1978-Continued

(in thousands of dollars)

Sources of revenue 1977 1979

Ends. is...- Continued

anufacturers excite taxes, total -----------------------------------------------------------

1

069 682 6 555 681

Gasoline, 4 cents pe

r Is

Ilon. . , . .. 4: 322: 077 4:

4

44: 494

L.blicarting T it It, 6 Carl, Pat giiil-~a 100,929 105,227

.,I, (wholly ~, in'~.,t .1 rubber), inner tubes, and tread tubber:

Tirin, highway type 10 ,It, other, 5 can

is

per pound except laminated tires (other

'al'..,na' hu " an b..h-.1 ve c as , ciml par pound -----_-------------- 7337 667 788 707

- _:...:::------- --------------------------------------

0:722 33:2

"

.ad r ,

'

!%`cen'1',Ppe,,=d.:: ----------------- ... 24, 569

24

1 311

Motor vehicles clbvmb~, ..

Passenger aid

1~'b'o'dhlsii b

:,etc., 7 per III'-------------------------- -2 637 77

Trucks, and buses, chassis, bodies,

etc

10 percentu..............

598:084 1117: 2

Parts ad accessories toy trucks and buses, 8 percent-------- : ---- ------------ 159,287

'a

171

Pistols and revolvers, to I at_---------------- -------------------------- ------ ---- 13,352 15,223

Fishing ads, -4 10 percent ........................ _----_------------------ 4

" all"

t 2

':37"

11

Bows and arrows 791' 11 Pri .... --------------------------------------- 4 6

C: 3

liresurn, (other 16.n piltols and revolvers), 11 pincend_ ---------- 3

"4

3

Shells 1 a

ad caull

i

client

.

I percrmt__ ..... 222:286 23: '51!

Black Long ........................... 52, 464

Other .,;I,, ------------------------

- -----

2

Retailers .................. ------------ --- 480,602 523,6774

N ricammercial aviation gasoline, 3 cents per gallon. .. ~ ------------- -----_-------- -------- 10,390 10, 954

Diesel and special InAll last,, 4 cew;-P.;'-;~i~a

Oth............. ......... ---------_- ----------- ....

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

Miscellaneous all

vir`~Iie; 2; '* ----- * ....

~_. ~ ........ ---------

U%funanali,nd

in

ii; je

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

Trif ------ .It I

not personstilritir, ggercent(which ~c~eiriiiiir'om 5 percent effectivejuly 1, 1970)..--

Tlan,pll .net I Pipes".;ty 'Yllr,,,,,Pl int.. ----------------

Us of

,a, hfc~

33 per p1rion ...... ------

Coin-operated gaming devices, $250 per device par yen----------------------------------------

WalcecrangPatI, as:

0 Water,. past 2 percent "' "' It meant 'or w

'

Initial %eighing It r 2 000 pounds, $3 per 1,000 pounds p r yen, (instal ment asI'll'that's , In Highway Par 1 6

,if, ... ..

.......

Use tax a, civil aircraft $25 perjear with

.

an addition

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

__ ...... ................

Power' it over 2 leads

If 2',bii'a'trrp,~ Pound on imatulpine eng, a

~O p or cents

I

tit

a81 a

per Pound Pirware ---- ----

,ansfer it pacePat

it

...

Fo

havess

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

r'

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

Element Netit invest. Inner argarillts't'lots, total -----------------*

art I--

Sell its. "I

III', S pircria

P.'I'I'

ial,,'

I I I -it 01 $10.000 or 2A percent on foundation man g r

Excess usibeas hot ing". Percent

an foun a

Tax

"

an , it ,

5

inic it on,,,

able - wv5-.G-D-6-,-r-41------------------- Pend lures 10 P ant on found

fl't.lh

. "i Percent an Imadritip,-

.In.

Failure ISO. -iff~er W;Y'liji to'a M"a-f -$'5"0'0-0---------------

F.

jure

to distribute income, 15 %rcent of undistributed income... ---------------------------

Investments which Jeopardize c aritable Purpose, 5 Percent an foundation, lesser of 15,000 or armir Percent or

loop

~.l

ion manager--------------- ------------------------

Evil. 'imt

P '

__ _Wex~jjjii

E

by..

Paris

be, 'In' "IAW -6 ~ n; ri to. lil'on , ene;i :::

Tax on underdistritrutil", ctual I'll In 111, 5 percent at onlieldistribution_ ........ 5 Percent 0, pring

Prohibited

'"a"

"ned it.

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

Triv I

Is

c,., untribuil,ml to I MR-10 Plan, 6 pe"ralectti of excess amount---------

Tax I a.

cess conirli biali tandards. 5 percent of funding deficiency. ... Failure ------------------------ to meet to, a

ars to custodial account, 6 percent of excess amount.. -----------------

Other" Failure to fie statement required by section 604 or 6058, $10 par day up to $1,1----

U.Cl ... 16i"aixcfsi iiiii::

30,014

440, 190 181: I1 4 27'

8

8

1

3, 325, 710

"'N': 736

957,251 'N'0: 613

55: 21491

1

6

70: 4.13

6,563 7,300

7

" ':

04

1132 1 637

226,209 237,603

22,788 12,111

589

704

38,917 8063'

12

7"

92 83,950

212 61110

3

103 79

912 1~114

809 2652

2,:06;

732IG 2N09

46

216

298

1

11 25 is,

74 61

2

1

528

111

313,118 196,182

85

Table 4.-Internal revenue collections by principal sources, fiscal years 1940 through 1978 (in thousands of dollars)

Fiscal year

Income and profits taxas

ManufacAlcohol Tobacco tumix excise All other

I .... 11 Israeli to... taxes

(7) (a) (9) (10)

1940 ----------- 5, 340 452

1941,. .... :_ 370~ too

2

3

:

1942_ - - 3

------- -

1

7'

047 869

1943:::::::::: 1 4 20,1271: 7,11

94 4 1 60

1945..... ..

1946 '430: 622'~ '~'117

194'-::-:: 4'1:8&4:

3

TB

949 ----------- 4D, 463, 125

"

957, 132

50:

61, 44: 009 '16 516

69,686,535

69,919,991

66

:2" 12

75

1

12:'141

171

79 Ill ~476

79,797,973

1960_ 91 714 of: I13

1961 94: 4

OffS

1

11

.963 4": ..

105~S25

115

1964 ................. 12,260,257

l9f,6 11124~4,7,:134 14

1967 ---------- 148,374,086151

13,0(i.Vg

1 969

...... 1

87, 919,560

111SI: 72

1 '96

19972_ --------

~47: 1

211,111,7378 2

37,787,204

74

.....

268.952,254

1975,. 1

2:

522 7

:: --- :___ '3

.3 119:72'

.... ..

92

T ------------------- 411 7.0

IS

1978 I9j,'7116:j,'~7

Corporation

Income and Individual

Total

I, proets Income Empl.m.all Exists land

I.,

x tax

as -111 x

as Rif in.

.

(2) (3) (4) (5) (6)

2 129 609 1 147 592

3:471:124 2:053:469 8

'

006 884 4 744 3

16 2 9:668:'956

2

al I

3

0

9g, 888082 , 66,796

.: 1 2

3

251 1 16

3.

1: ':2

IS

1:5

1 0'7

13

~5

0,

29,011:1711 1:676 3 172 ..91 1, 1,

29,'

6 4:4.0

2 05,491 11,553,669

28,007,659 10,854.351

37,384,879 4,387,569

": 1

21:41,1:91 541 30 73 29

"1 5150

54,360,014 21,546,322

,9,:"2 4': 114

2'

11 14 72' 56 6":11

64

1:2

60:1011 ,9 J:g4,25 531 53

":

,

3

1,

4 20 3

~6

58,826,254 18,091,509

17 126 22

1

71 67:11'.'7: 94

1 1 64~414

2 :7 941

71 94 3

'

21~

'115

'1

75

U?

2

:323 14 2 336.n4 78.891,218 24,300,863

79,7I 21: 3 334

31~'794 30 134 1 1:243

1

92:288,420 04 34 917,825

111, 148,565 29:816:52"

135,778,052 38,337 BIG

131,.111',3168 72 31:3111:915,33

74

It 1,

143 3I:8D4 732 34 925,546 164, 157: 315 39: 045: 301 184,648,094 41,744 444

2

"

17 4 74

"'

I

" 1 0

51 05:72:7 46US H16 2

49.567,484 91808,905

246, 805 067 60.049,804

278,438:289 65,380,145

982 017 833

1, 417: 655

5 521 3GO 071

92 :856 407:058

.3:622692:91312 1~41~1~1~73'1? 432 1,161

5 44

':4

18,261,005 1. 738,372 511,210

181:13 3 3 71:8117

' '

III

I

S

1 1: 1.

2.

B'76:0.'32 4: 36

1

1~

3'

3 2~17 2: '21

"

7'1~1:2"

2. 9!37:7

1 2 St:3 B

3 142 341

19,051,822 2,476. 113 796,538

I 1: 1

1

7: 1.13 01 2: B124

1

571 7 :227

2

IlIs 1

1:47

9

72'~ 73

If

32:

52764 4:461 2

29 '4

133

"

7

3 :21'7' 4 7

,:1

03

111:

284

32.813,691 5, 107,623 935,121

'1

:650

1"

6 21

1 "

13 :267

35 3

3

7: 642 7:2 0781

1. 1

7 '1 237

3 2 I~ 377:

1

29:

'559

72 7~5'

U413

82

3g~ 0568

a 6

4

D

925

40, 734. 744 8, 853, 744 1. 352, 932

44,141.711 1:~1.11 51, 616:3121

46,

151,

Dal

12 2: ~51 1:916 IS

5I~

giii,

5gi 15~ 004~ 111 1 .7: 4S7

64,

514 12 701 2,135 111

486 2,

54. 590,354 17,002 1

,

504 2,416,303

51:21910 6f 17: 2104: 301 2: 07495: 952322 1: 113 , .33 1 3

69,370,59552 2026,958,211 3

78,252' 04 " so

5

28,085,

"

9 31081:17'~

7,440,406 33,068.657 3, 530,065

10103: 1521: 75 4112. 37: 39 4481: B111 3~ 711.1: 2187,1

914,

1,

3

108,879,186 43,7

1421 910131:6111 12 011,71, 001 5:9 4 4875:896629 9

2.

50

62: 093, 632 5, 100, 675

1~181:'3 1:43,7 7 4 16761

I

D

68 79 74 0 5 "':W

4

9 0:2 20:115"3 3

139,758,579 19,892:041 1:485:247

86,755,263 86,07

2 6 316 7 425 325

13,

058,144 97,291,653 5, 331, 499

624 253 608 518 447 088 337,392

820: 056 698: 077 617: 373 430, 564

1 04 17 7 7

' I

~ 612

423

5

'

6 9

" " '00' 04

a

1: 64 23: B57' 04 46 1 , 2''74

1, 618, 775 989,483 503,462 1, 733,65.

2:30' 116 32 141 711 2 211':

2 ~26: "8

165 1. 116,:511 '22:

67 2: 1, San

2~215745:3712 27 30 1:462,5:260 4 2,117,184

231 2 211,113

2.210,607 1, 321, 875 1, 771,

533

2: 280, 969

2 5

go. 1: 3.0. IS I.

...

2 1 321,16' 13'

"'

2

46: G 2: 3:677 2:312,719 1". '51

2 43 33

":

B12 I:

"

1:~51

:78D 21 1" 2:3'6'217 2:147

5

sit 2

8

2,783,012

g'

2 ..~ 94 92

1,580,229 2,689, 133 2,464.859

22: 974220: 5841,4 1:611131:~29173 2:3 11:01136 456 2 111,866

"'

:311

2 73

fl~fi

1 :76 12

2~9946

4 0 3 5 2'243

3 974

1

~46'1 1: `1'34~

0121

': 3

5 1

175

1 ": I, 3,002,096 1,806,816 3, 958, 789 1117 2

3 IZ f 1: 1

1

13:87014 31:

5'

4:.7~365:8121 2: 11: 3,14

3:2

99 1

.7 4 .2 1 963 ,

2

3:

3'

6 :7 41 2 1

56 2: 071 BIG

23

3 41

1:2

81

2 12

' 3`7 5 10 3 2

4

': 1'0: 1

IS 1:2 B:

131

3,577,499 2,052, 545 6,020,543 2,299,645

712: 4 5 1~4 2:

..

1:64131:0164~1 2 53

1,

fill 1

:9 1 SO3: 37 2 W3 56

44:111 28 7: 23723 22:112721:111 2,7 15:1713:31 97347 1:479,09 2

4. 555, 560 2, 137, 585 6,501, 146 2,344:495 196 909

4: SINI: 111 2.094,212 6,683,061

12 6 N?185

799

4 49 2~ 3:.79

2 2' "'

2

07:173 5:'7'2B 57 3

'14 8

': 0 04

5 9 5,395.750 3, 50 104

"' 2 26 1

7

5, 358, 177 2:137:09055

' 7

42,

1

54 3,

5

72:217

5 3 2, 311: 3:,11, 182

1

',87

X '. W: ING' 3 1

5

:421"~ 722 2 114 5,491 55, 998

1 1, 11. 339 ~1451 I S~l 07

0514 6, 1

'9

5:3406

33

2. 191:

68'682

3 3

5,612,715 6 2,450,913 501 61555,681 0 4.045,639
86

Footnotes for Tables 1-4

:1,ass then $500.

Revised.

1

The receipts in the various States do not indicate the federal tax

61dim at each

a

ince, in many instances, taxes ate collected nfidpz

State from residents of another Statee,FcS1t:;arppp. gyhln.o,~,ng

taxes reforted by emplome located

o, Ima Ina

substant at amounts with old from salaries of employees who reside

in neighboring States.

odes takes On unrelated business income of exempt orgaini.

x !op

3. Collections of individual incomeI,tax not withheld includeli old-a

a-liome, disability, and hwpita

J"suran

on so f-emplog!

ment income , d (SECA). Similarly, it the colIecrq1Un13~'fipdfiyidU.I to in...

usw thhel ffa.r. I reporte in elombinedc :no11n,11(w Ih

it,,.

I ty, an

it hose". "'u"

tax. ;,

A) on xul.'ria;

and vk~ja,. Estimated upmate rat-al totals to, indiv,da3l income

~:, imeorw*nd1xg'e;I.s~,.,~,tiyp~,a' magilal so, insurance

no

.Na

retrial avenue Collec.

fiers) incomepage9a and or, 1,used in obtaining . net lonal totals for individual

tate and amp oyment takes in Tab..

C4 ofibutions Self-amplo ment I aretaxapeandicable taxeswith~imposed respectbyerGeulld a. 6 ~c 1,

ar'nd' 'Anm,%xn 'u

So Pa. Amounts of such taxer collected in Guam and American

Samoa are combined with similar taxes reported for Office of Inter.

no tion.

I UP

erat one-Other.

5. Includes Fiduciary income tax collections of $1.3 billion.

6,,13ogirring with hscaldyear 1957, the I.,ilexiistatt,

total"

j ad- to to exclude withhel individual incoin to '-fiered to the

Government of Guam in accordance with

"a

~rovisiors of Public

Low 630, api;roved Aug. 1, 1950 64 Slat, 39 ). This adjustment

amounted to 15.2 million for 1978. ,

rucludirl net adjustment of $216,292,DOO made by the Department

.i he Traps

U

ry

8..Th13 district is fiessignaled to rapdort .11fifieverue colli.,,,,t IIn, is,

dJI1

Ia it by it;

-, ""I"I

I dUng outsi

a area sery

In in go anus ervice Cents

'.

unit., 1h..Fedm1Ipra1h.dP1,P,~,pit

.,an.. call

'bers

a to ocar it

1" *h

1"

in* 11111,

men, or.' do'h

.I Cie.

II!,d by

subclasses to which ""i"

tax Pa me Pntl!lith.,F.d

tax deposit payment

a

ape

HeNytT.' tax

P

list's liabn ty

orteral

tax

turns filed.

to. Represents credits allowable on income tax ~eeturnx'fipag.',.tn~o

gasolina :nuldluturicatin"

all "an't"b"Inn"A.Int"(1-rA)x.

cisPa

unitar th Fe eral mutant. Cc I, ut IC

Pr6~if 11 e,!,nti,,s byI.... yors orta portion of their taxes tot

!1he

mintRit Election

Campaign unit are not colections, as sue

because they do not

affect texts

yet liability Transfers of amounts

to this fund are made ona nationb

axis

y and, therefore, be,.

no effect ....onset. district Princiur's and regions) ."at to ecli.n data.

against outstanding be. If.dlbifitilx~

other than those for Forms ID40 and 1040A on whico the ere its, are

claimed.

13. Amounts of internal revenue

taxes c"ll"ted an Poor"

I can

Products transported to the United State, or con'Prined on the

~~md

Pry in Puerto III.

imd~,sg.,~l

(last refund,. pre

,, isi_,p..... of fees. ) or,gg;(3) 10, ,it im. the Ties,.

and 5314(a)(4)

of the Internal Revenue Code of 1954. Th.

&

a, amount, are In.

eluded Inoverall collection results

IT

able,I

ffb~

built 4).

14. Refer to Table3 for components.

15. Corporation income tax rates: Effective Jimumy 1, l!165, first $25,000 of net income n.r..l

tax of 22P

in a....

of $25,000 combined

omirs

and lurter .1 4i

P,

and surtax net income derived by Certal;

.,.at tax

"" ""Y"

X.orpt

ganif tions from Unrelated trade or business. Effective Jarbary

68,a 20 ,r,,nl Pat In""Int, 11,01g, was add ad to the

to(

Public

Law

90_364). Th, 10 ""art Per hnP

in ur,ming. -aextended to

December 31, 1969, bl Public La. 91

53

-

3 .11I

'a 'u"I

,b,y Public Law 91-17 ata5 percenta

fi~%

nued. Under the Tax Reduction Act ofI

and thVIliscrUn

ex

for 1975 returns, surtax exemption incr ad f(NL0D40fi'.'~d"n:-1

tax educed to 20 percent on first $25,000 of taxable income. Thes

changes ac;L were extended by The love

..

Adju,11111 At'

of ""

(P 94-,64) to June

31

, 1176, to, 19

76 to

t

.......tan

designed to

,ya

the half year exholion. Th. lower rates and higher surta,

exemption were

exte

nde'

th ough 1977 by the Fee Reform Act of

1976 (P.L. 94155) and him,

h 19

78b

y the Tax ReductionA Sim.

P

fification Act of 1977 (P.L. 9i-30).

16.1 dividual incometax rates: EffectmJrb,,u,ry 1. 1965. graduated

rates

from

14 percent to 70 percent of tax,

per ang,,on 3urchmge is income.

A 10 Pat"

a

d

1968, tied by Public Law 90-364, effective AprR 'It

offividuas, wa

a

extended to December 31, 1969, at the

same annual rate (Public Law

9

1-53 ext:nded,tl

""

30

(Public Law 91-172) ata5 percent annual rata

o

it

I herifiscortiolugeldo

nelud., SECA taxes of

7.9

percen

t

1 on net earnings up to $16,500 for

977

a

nal of 8.1p ireent on earnings UP to $17,7DU for 1978.

17. Rates of tax are as follows: Income Tax traduated withholdin., , he 33 'mc:, I ... in .c- 0 1 Pti1n,~P.qbjic,,,.,w 89-368, affect a

JPV' 1, 1967, 11

m'Tx.bRcw_

Vi

~Irylan,

11 1, 11 to 21 penclo "' 1:

'c on

a

).no

6,

ur 1972

de, Pubt

1, Law 92

1 4,4 IIS' 13.'A",kenfit'

ctiv:'

.iiiectivejure April 30. 1975,1,

under Public Law94-12and94-164; 15035percent, 1 9

77, under Public Law 95-30.

A combinedF

I

p CA tax rate of 11.7

erce

nit

wastin effect on salarissand ivrilis UP tD$16,500 for calendan

1977 and 12.1 percent on Wages up to

317

700 for 19

78

Consists of regular railroad retirement combined tax role of

'1971 and 214a III.Irli fT18,

2'.2 percent" Z:id',~Aa.'

U, ~', he ,!,,,,Ip

applies to moripi..7I

" 'a

1177 vid 1.1,57f, let 197.) and is imposed an

tP '6n

Us (fint"ord

ax ble part %I we Ust 1,375 of mo=taxable

compensation

tar1

17Y and 1,475 11, IWO), lP,tb

or

a

.it.

road employee repir

iiamuffti!s Nx

of 21.2 percent to; lend., ytin,

1977 and 21.6 percent for 1978 on taxable ortiono compense ion

received. In addition.a supplemental tax Mind quarterly by the

Railroad Retirement Boatit is imposed on employers and employee

representatives based on man-hours worked.

;a persomin each of 20 calendar weeks 19. Employders of one or fin

orwa Pat wages of $1, or more in any caler%foquar er taxed

I,asip,een on tuxol 14,cdr

'an '!T'" reduey credit, for

197

and to S6,00G'fV1 1'978 ble t'.,up," ad b'U,

'fara

unemployment contributions paid

to State,

up to

2.

7

P

FUTA encent of

tax.

20. Prior to January 1, 1977. estate tax 000 if rates werec. gr dusted from 3 percent on 71he fgst 11.,, 11 , as of a $60,000

as..

P` no to

7 P.

an

, 0,

Do'* ff~o

t~ ... *a,,

thee-Nurths of the estate fix schedule to, .,'Zp;.d It Rats ,

"i""

Milk

'

111,00fit ,a ""U""'Joe' to

" 'Noo "'us' "'

...

h it crop. Baginin

ing January 1, IS77, the 111aneft, rates for state,

,"it

"iff" *"a replaced by

Unified Islas of tax graduated from IS

percent t~ 70 percent. The

a

par.

to exemption amounts were replaced

by

-

unTed credit of $47,500 to be ph

"

sadt

n

overa5 year Period

030

.

000

c

red

lt

for

19

77

and

$34

,

000 for 1978).

21. Tax,, an passenger automobile, and light track, repeated Do..-

be,

11, 1971, by

the Revenue Act of 197.

22.1 nclud

as

500 and 2% per ton taxes an underground mined coal

and 250 and 2% taxes on

surface of

nod coal.

"

to., ,pull by Public Laws

'!3"

a

87L4'5'6','6 ',,d.','d Ne"itt."Alls. '~'Clafii, up, and pro ...t

Run taxes which have expired.

24. Rate was reduced from

7 greent to6 percent an January 1, 197

to5 percent on lanualy 1, 977 and to4 percent January 1, 10~

(Pubf.

U

w9

1 -61

25 4)

1-al.. 5200 ifxch~l immusin ,lineSureJUP, It-barlshad firearms, silence

combination shotguns and nW81,

tax., barrel,,or.old the, special types offireaffirs, $5 dealt. O..P-ti ...

le"ind on manufacturers. importers, of eaters in firearms

and are included in the amounts shown.

Table 5-Arracrunt of Internal Revenue refunds including interest (in thousands of dollars)

Internal revenue region, districts. States and I her arims (States r.pliansiInted! by single districts

Indicated in Parentheses; total, for other States

shown at bottom of table)

Individual Income and employment taxes

Corporation Excessive

Total Income prepayment

(1) (2) (3)

United States

'

Total

North-Ati-tic Region--------- --------------------- A

1,11m,

(11

Just,

Im.

)

c~ mv)

Hartford ------ (Connectratj

man hatte tn~ ----------- (See (c) lbefoy~).

.Put

-------------- (New HampaUre5_,_._

Pe"Id

h,

Island

)

..........

Mid-At ards.

Baltimore- N-~ ........... (Maryland& D.

awark-

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

(No. Jersey)

III

"

it "P":

.....

"'(J,

tinfixt,.

'gh fvire

, be Rickon.

nd gioni

U)

Southeast Re --- ............... A fin

ijhi~: :::

.11mi,

'no ~Alxbahra Go ---------------

Columbia- at

h

G ... Peter' ~(Amflli Carolina

Jackson..

JUckxprylIj~:::'_::__::: ----------

Nesbitt ...... --- ._::::.~T mnesaee)__::::::::::

CephraIl R,~,gior.___ ----- -- C (So b -------- " "" -:::

(S.: ~d

Cl:e."I..d'::

It

d)) bel*.W.)

Indian ((MInd

Louisville. k bi ------------- (Kentuck

Mpan, are urg -------- --- (West A

Chicago --------

Des Mobes,. .... ... low.

F.fl,-W -------------- (North

Mi wo.a ..... ....... (wisco's

Omaha ............ --- : I yib.r1u'11a

St. Louls-_ ----------

("

St. Par ............ :::: f1mineSol)

"

!--: ..........

Springfield.. ....... See (b) brk5 ------------

outhwest Region_... ....... ..

All

Austinuquer. ----_ (Now (W on

Cheyerne.-.-

ISe',.(l),rbtdowJ:: --------

off............b

a my........... '(S'.71.22d

)e!*w?--::::::::

Little Rock...-...... (Arks fiss").

Now Orleans...

Oklahoma City.......... (Oklah

opp.

Wichita..- (Kinfiess)

~..~ ...........

W to

Anchorage. to Regilic ..............

Bolso_ ..... ----- (Alalk _ ~ _ . ~

----------- (Idaff.)!

Heinna_ H ..........._ (Month. ..............

I

on""' ) ...

we

Lee Anll.iii. (IN ei)

Phoenix ...... .... (~SZ,ixop).)h

Purfland (N.%xn)):::

Be...

_: do

Salt Lake City ........- filftiih~

So. Fememe............ (So. 1) below)---------

oft,Smitftle~ ..... ----- (Washington).!

_------

ice of International Operation,. .........

Puerto Off Rico ------_------_.....

at.

. -------------------------

Gasoline, lubricating oil and excess

FICA crrxdIts3__ --- -------------_----------

B...u .1

C

Pat ons_ ---- ---------_-------

Earned Income Credits Offsei------ .... ~::::

Refunds reversals unclassifiedI......... --------

39,644.3225 626 253

51

..:

261 '924:596

278 324 15 699

"':

340 13:896

EB, 14 '133 939

1,

"'

431 73:173

743:5.0

1

313

53

B~413 3~fi

"3:

1,145,906 153 545..

139,034 '7:312

162,056 29 ,2

5,666,702 I'dit"D99

79f, 250

83

9

65

1.3 21 too4: 34.'J

1,411:,131 9,6 363,243

74 283,826

"' ' 6136,'8'2'7 53:333110

4,519,491 485,465 '940

8

159

1:411

498

So Big

VHS 3 26,520 ' " 6

253,054 15': a'134

1,30 601

"

1

C64:

3Ifii

74:3

J3

1,111:417 8.0 602 631 10:7

293

1,234' 619 196,635

1,7113,523 177:,627

900,150 742

1

298', 11.471C 13 2 14 IN

5,

'11:8"

923.975

B6

1,946,002 .00

34933

70

13391:8B431 11:1131 ,,

738 791 109,824

246:8034 116

1123,753

1

51:

58,

658,271

"

211

526,698 83:

so,

4,11 170:579 "2: 01if

605 12

1,284,804 172,091

&82,833 "' " .31': 214..

410:124 '7:

..

2EO 6,

1 24 6132

62'

444:'4'1'2

87'1:71"4

367,786 57

7,611, 90

434 '.'~4

.13

.59 11:437, 11~2

": I,23 37

121~219 7B 515 153~: '31 360

3,122:81o) 385 t 444.568

25,8151

455,24752 44 885

2:1

8

298

217

059

23

,

711

1,957,285

2

1

7

,

587

707,307 87.

o"'

205,

91611 925

13 911 101

74':057 2!1,824

651,198

1i 7 113

184

65,938 53,393

Other Estate

(4) (5)

31 969 036 1. 75D, 929 98,193

4:259:159

1

17:126 22,37

256 9464 784 7562

132: Bit 4: ff~l

807 071 '17

10

2,893

960:996 18,009 2,905

14

'1'

1

5 899 11802 4N26 1: 883 215

5":'7'

12 "al

641 703 37:0.4 ..

JI:

087

"

14 3:3 28G

129:27'63 2'08 324

4,472,173 132,430

10,

534

25,086 2.126

1,1461:114 32:0312

4

"13

1.008,567

3B6 :7

9

675,082 15: 14 7 13196

2J3

007

0': 75 110

3,948,288 150,832 3 21 23

"'"

12Y

43

1

.3

1 : ' 0

4:666 484

314,347

9

904

'R "5

111:14,434 838

223 77. 12,722 34 20: 1 11 41 01

5,

84

6

101 1:1

52 290 848

4,704,577 150,402

67'

7'

113.91IR 1:2".

,93:0522 41,625 5 ': 67, '05

3"

36,1802

7

fI

9:23 27 7:196 1,558

426,485 20 023 1,247

2'4"2'

1,171

2

99

4,2611,29.2

&6

11,821

42

1

1,414":6'31 57':544 3,3'M

311.011 24,533

to'

7 824

7 1'

1:754

B 2.8

6067 19',23 1,512

114:

..""

6" . 765

171 35, '301 I~ 711

547 111 22,163

1

2,:,50

t

17'

4 19,713 242

3,711,114

1

97,

471

13'606

152 135 5.

834 458

1, 061: 191 41:,1817 2,641

":

230

47

02 143 45,770 3,513' " "

20,444 3,024

223:227 12

..

12'

511 14

20

85

1'.75

350:71 :7

84

'o'

139

286,394 20":

7691 2647

"

:2" 242,424

1

641)

11440,80, 882 104:817 log 108

994

too 1 411 9,682 29442:

817

4,517 439

2,581

7

,

345,998 391, 90 714 75

6

725

90B

12: 70D

126,

344 7,899 734

907

5,

746 993

186,

'47

1 11 213

1,

G67,

43

5 ~.:359 5,

539

"1

260 29,154

1,

700

119:142a 292:892 04 1,039 E 4

121:

86;

2

2

5,148 1,0345

7,184

12,545

Totals for States not h.- be,.

(a) California----

"

1: 314 1172:3171914 11,113

2

7

',23 142.268 13,295 ':3 2 700

77 14S:1 5B

I NewY --- -... 3,230 147 12 511

2 50g, 157 71: 275076 531 3,:221 ,1 597 58:05 Prnrip;Yf-~;

7: B~fi

3 2:

"'

2 !11,313 147,119 '73

282 (1) T. as ................ 2,167,637 309,355

J'683 '649 45 753,334 92,457 6,224

Includes

"Plit, or go'efir. I.

I

I Illuirk, include -1it, 10111:IF`~Ikl ab11.011 Age

. on

S PrIll.fix, Federal Disability, is bid Fail ...I Hospital Ford' ..O.ntlftg to 11517,725,0010,

Great Ist fit, F.nkmmll Under Dr. Fed-1 l`pxUr`.,,'1'.!Co District offile data! 3 wave not available for .fund reversala"~166utipfil ACT(FUCA) w... S517,725,000.

LessI

h

an $500. pending when FY 1978 books were closed.

87

Gift

(6) (7)

81070 291 941

71124 11:214 11 6

26 71

71 751 40

7: 213

94

1

535

6

44

289a

15

183

3

1

119

63 133

122

"

443

655

.....

1

7,396

13

,

191

97 227 2 2 ? 7" I: 7

62

7801

""

30

60 10,658

75 186

49 266

79 3, 1~431

so

386

51

71:787

7319, 20:4" 2

S3J

311 183 1: 7 122

522

4 113

47 4:

']

2

20 269

1,712 31.465

35. 6,1001

135 844

33 123

1'3'8

J

60

401

644

19,

989

84 963

198

1,

511

I

is "99, I

1

511

117 1,277 1~6

338 1 3,731

13

519

32

170

43 894

1

5

7 343 7Ei

I"

3

475 14,296

177

13

111 25 3,

262 120

50B

'

14

169 44

8

'

7 368

38 71

14a9

351 819

78 J: 10

25

1.

394

1

25

859

556

547

404

1.

255

28

.24

'

1

52

133 460

1:

433

11,313

7,686

2,032 953

143:4 18

5,012
W

Table 6.-N umber of Internal Revenue refunds issued

Internal revenue regions, districts, States, and

other areas. (States represented by single distrlcts indicated In parentheses; total, far other

States shown at halt-- of table)

United States, Total___

Ncrili-Atleirti. Region... A 111, _: _: (M -)-.- -.-~:

- -::

A!B Iran ................. (Mossachusetts)_..

ffisollyn GR --- ~S::((C1hall*1w):::::..::

----- (Vermont)..-..-_-"::

Hartford. ...... (Connecticut)

Manhattan ------- ------- (See( that

Portsmouth

Affid-A lentil. once

w I.r)......: ry'1'1'r'"a

P11I1d1Iph!!::: Pittsburgh --- :-:::- ((I,,: S ~:)I 11- ----

bal

W~:::

Richmond ....._ .......

Wilmington --------- (Dela.ar.). .....

Southeast Region—

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

Atlanta ....

""I"

ih in

C.I.mb

! .............

(South Car'

~Ncrlh C.r.:!nn:~:::::::::

"ck"n

.. ARu,'x,p',)_...

Juick,mvill....._..... (Florida) ......

Nashville...... ....._ (Tennessee).

Central Ci Region-...., ------

'::

Cl ..

n,i"n":::::::::::::: land ~, it) below))::::::::"

Detroit. (Michigan) .....

Indiana--------------

it

)

Millilp" Is. affelivirst ,,rl,,,Iur,

Aberdeen._ ---

b)

..,in) F. j-__ ...........

M.I.ok...............

(laws

Oman ...... ---------- 1,

--- ----

----

Nos

r"~

k

S Paul .... (M`nmuou~

. ..

SI: "'!----------------

~N

-

::::

S"iniffilld See

b)

W bel;w5

. ....

Southwest

',41. __

.. ------ ........

Alto Austin......... ....... ~"wa. 0? '-'-W):::--:::::

In .... ~,I.,.,nnffil) If) ..............

Dan

~C.....

do)-

title R.k

:-- :-:-

How lrl*,n, Lou

na

Oklahoma Ci,;:::::::::

Okhmdmm`)~ ............

Wichita .............._ ~Kn...)........_....

Western Archoralle._ Region __................

Alaska) ............

,an'.

Helena

HiImillhi_ ............ ('

no Ana_. (Haw"i)-h,,',,,::::-::::

Los I, ..I "' .IM(Aflzm,a)___ ---------

Portland. .............. (Oregon) .........

Re ............. ~Ullnldl~:::::::: I n1 Lak, sill--- ::::::: (Sorml;ibelo')

S: Franc co.-.

a .........

Seattle... .............. (winbrgi..) ....

office of 19ternation"I O"'rations._.. ---- Poor" Ric _ -.-

othe. ............ :...

Refundi reversals unclassified 1. ......... -------

Individual Income and employment taxes

Excessive

Total Corporation or epay,ent

(1) (2) (3)

1 121:".21

600

280

346,350 I a, 1.

"5: 2. 17

212: 611 3 IS a

9,613,747 2':1'02'916

5,816

.1.:73IS

I."189~ 3"' 476

9l: SM'R:811

1,042,781 117

1,638 111~ 653

2, "2649: 5.3

1.311,511 '. 560, 2V

1: 01SI

SO

1: 12

61

'21 73

1; 66'

1:,

16

131 7"32

9,446,141

"""

2

2,809: .76

814

15, M

1,417 180:978

460,140

433 144

1:237:

948

898,316

8'644,75D 369

116

2, 05~ 502

139,644

1,131

22

88':1fHt

1,136 '7 ""'514

111:34

1

690,010

12,323,352

14

'

:24

6

257 978

235,850

4,7481 302, 7I10

721,

25

f:13.'

393,867

3

9

1:157,03

224,640

185 178

40~

8

1 13

45 365

ID4 ~491

Other Estate

(4) (5)

479 696 65 688 224 2,MD21097 22,782

74~6116 9~OIZ551 325 992 41159 3 758 577 443 18:425 221

2:866 330' 12~

IIS

S :321

15,751 1, 8DO: S711 3" 7~11

9. 026 1,926,678 60,283

RS

1

6 '17 43 221

"

3

.~'283 1' 14

1~

MR

7:,34

4

1

1,1:1466 38,326 52

558 1: 2N37: 4.96 65,330 84

27

"' .

'77:743 11,7403

3:042 303 OM 9, 330 17

11:519122 337,1911

4

la

t:659' 541 57,

5

12'0

72

": a'"

7~

'3

991

2'~16'3

1

2~'1!12,426 75 747 570

"

12 370 347 40,687

2

~1:6127 1:52

f:I

5.7 3276

":'1'3

1

'23 217 21 60

" ..

.

724 9,259 37 337,138 2,615

...

1:04.1 731 57e 02 260

3 ':4.9

3,

1 96

0 065 166

4,621 16,187 27,46a 194

12,196

1,

68 565,986 5122:14 333

3 '53

831 102

0:23 2, '59 2278 121,347 1, 211

'7 50,40 285

'a

1~33

'1

3

6~'9011

9

17E35 24,0719 2,112

315 00 7:S72 48 04 294

141 32 63:369

- 451

"S

94 050

'

.2 114: 51

'577 62

2

7:063 42

1:~fq

5

'1

114 '4.1 38: 67608 289

3:315

~ 1:

13 17.021 95

71, 181 1,911 "1 411 171 3,726

1:95

173:493 6:91, 78

19 770 2,691,771 95

'2

7

"

45

75'

4

"

54:473 43

1

I~'677

16

1:675 17 135

13,

'57 "34:6"

57:3F2 5?7

5 27G 42a 02- 33

97 265

12:754 1,357,445 61:0170 453

11:24

" ..

56 456

049 17E 42:355 6 4".

"'14

142 400,525 2,S71

2

'a 5. . : 2" 3 :43 15,079

12,632 2, 294,55793 95,596 Ila 587

UI~5 17 12 ii~q 38 58 55

' 8~ .17 1,542 OR 50

7:22 751 41,

'4'

x I~ 273 ' ": 0 0 7 145 D 2sF72 135

7:5 SWII '12 17 45,594 263

"763:302

4

1

'7'

3

6,807 631,094 41:721 323

83,907 1 11,649,059 576,096 4,612 " 1

31:

"'

42,

34

2:24642

'.

421 176:675 7~7

51' 16,606

9

3:1.192

15:

25 9.

2.115 10,415 74

IS 75

1'

1,86

2

,:,1" 1, IU063: 6831

'27N 239

21

1~1

7

..

1: '21 70. '349: 10:03011 227 23

355

1111 60

7' 74 2'

16,602 69

':139 38

1

118 2,9 1: '13a 52,469

9,690 1,146,854 66,424 1' 330 5"

699

1

55'559 29"IS

222

28'

348 12 113

"90 127:211 7:

162

217'

S,492

fig ad,

--

Totals for states not shown above

C.11famius ....... ... 7,1181:711 192

IR.in,

35:71

.Y 328, 277

ld) ON----------------- 3.477,

44,

a)

.....3

701 l

I) Texas-1 4: 044:

1

'4

2': 41 '19 71131: 414: 347 773 363 1 go15'

31~1

540 37:

7 4267

3797~1 117:212 2,616

23: 3'205 '3: 033 8341

1, 4IHI

74

5

1:434 117

18"23

If

6 ".95

23,449 318'326:677332 17' 77

i District office details ,,a not ... table to, refund 1, pending cl-Ificritim, ban FY 1978 books we,, timed.

Gift

(6)

4,149

5934

2131

113

648

Excise

(7)

52.108

5, B4

3'2

37

1,016 "I

"'3 116

93

'3'

1"

717

12 193 7 57

411 129 6,76

939

"I89 1: 336'

46 713 995

23 1, 122

672 7,295

11

1,617

S9 76'

48 617

"'

17

376

I~

286 1. 164

63

92~

424

74 .85

97

100 91511,

94 1: 388 3 "

131

M3

07

'37B '6' 34(1

157

89 0,34,

47 436

11

1,344

90 572

120 1. 302

Ui,

1,241

1.8

7

'S

816 8,29

33 241

195

1,

gl~

124 196

59 1,899

91 17

1

45

fl.

57 920

11 il.61 7419

9DS 8,70 2 2

20 321"

31 164 3 1 1

20

313~2 2,603

63 702

34

31 273 2"

2176821:23714

201

27

19

570

265

317 IS, 13543'

66

4,640

':2 I"1,8

1,970 2 121

3:

BIE

89

Table 7-Internal Revenue refunds, including Interest, 1977 and 1978

Amount refunded

Number War It

ruArnmurl .1

ast included

dollar.)

(thousand

dollars)

1977- 1979 19771 1979 19771 1978

C.PmTota1. refundis of Interne

I rovenuaI .............. 67,726.918 69,049 646 36 493 895 39 644 319,935 319 153

in

I ndwid..1 a' `cnd':r~j;jriigtiiM

117 471:SlIS 1:121:04 1:SX253 322 208,494 197:97 67,4.80 31 6 ~4180:311 31 71.72 33. f3i a, R65 97.436 109 '3: !1 Excess~ve Prepayment income tax.

_i(Vf

h C~;.~' 64,

53 1, 06

6 68 224 2,~l

Ot er income tax and Federal lriu~;WW 615

2,

5, 3739 31, 8619, 036 51,000

5~. 390

460

Rajjm~;j '11.411 1, 111H. 364 1.379,342

E

at hPloyment insurance----------------------- 220,797 22a,126 36.8.3 1"

G.It to 5:1~2

I

Unem

,

68

......

x ---------------------------------

29

"

22.782

2

9

294

............4

3

6,644

Alcohol taxes 2- --_---------- ---- 13,403 13,606 .2,

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

48,3,,1 52:7140,8

1

461~1 T"'c" 'a"' -itifis -------- 3,324 3 ,

510

S"q Manul-cfulms' ;-d F;W exc

Gardir. ..ad an fa,mis---- "a lose" 1 89 96 16,458

..line "0111!1,,y -----------

17'1 'a'

Our ..... .. ....

----- 2,3143 2.611 44:300 All other excise taxes 5 ....... 31,262 34,594 1

5,824

1. 706, 445 876 45,484 50.760

43.509 9441

1,0' 2,0'

98, 193 9,747 9,551 " 7'

'721

291:'9412 132 .,623

120,827

1

4 14

149:0871 13'4'

682

'W

106,542_

3

4:3'3- ------

___

38 1521 132 __jj5

16.213 '829 924

IN'et of 197,214 undeliverable checks totaling $71,658,000 in 1977 and 244,803 undeliverable back, totaling $99,364,000 in 1978. Include, 111,1,cl, and! dpjam.

Includes

tax credit, totaling $lg,295

OR i

j.n,,jd1, 1~,.Irrilalunjr oil .,ad I., nmr~ij

.1, IP1.7'7p1.,eds' 106.35 5,000 in 19

7S. .do

S"'

,,, ilimr, -Iwing (excise and not lock and ;Iher excise tax Excludes refund$, 16 1 ), capital 3

392 tax year 19

4 re ates totaling $4,1 000, including 168,000 interest.

Table S.-Overassessments of Tax Exclusive of Claims for Refund

Total

Ind dual ------- "

Fid

ucl .....................

C~Exist,. 'u'c PT'i;~ ...~ ..... -.................................. -

Gift

Excise

Number. Amount Recommended

(thousands of dollars)

1976 1977 1978 1976 1977 1978

10 264: 71~,' '111, 1-0 $289,100 $210,511 $312,265

1,589

06,468 96,471 83.055 97, 982 11,128 411 1

7:,113

1

':6'1'

'0'.39

11~1`177

11:002

13

"

':2

6 16

5 226 4.F H

30 15

677 83 33,9 3!1.249 28 '13'

549

1',39

551

4:

040

5

3

2 11 1:132

1

0,

7

9

7

4: '71 3,7

5, 24

94

6

38 4,121? 908 33 15,554 5.373
90

Table 9.-Number of returns filed, by Internal Revenue regions, districts, States, and other areas

Internal revenue regions, districts States and

other areas (States represented bl, jl~sglo districts

Indicated In parentheses; total or other States

shown at bottom of table)

United States, total. .... ...................

North -Atlantic Region ......

be,.a

-

w

-

A

u,,a,;1::-: a.')I. ........ ....

Boston.

Bleakly

Buft.l.

................. (So. (c

u )blI.w)-:,_::

H,.rt old .. ...... anhation._ ......... (See (c

n -------

tarrauth............. (No. H

'Trabir'

P

rovidence. M P . .. ........ (Rhode)Island)..

ld-Atlantic Rogon-_-. ---- _ ------6 ..........

NewarkP

d~~ h!, ISI:: ((:)) below)

PIA'I gh

.,a

I'N'Aware)

South...t Reg ................... .......

Atlanta. . ~ - ~ ----------- (Georgia)... ........

a limain ,aurrh~,h11 is C

.9'saasip

"r ..... ----

I" Ih lipil)l."x) --------

Nashville_

antral Region..._. ----- -------

Cincinnati---

Cleveland ... IS::((d S 'I N-)

Detroit.

............ Michigan)...........

Indianapolis::::::::::::

L.

u

avll -- -

h

Park b.,g ............ (West Virginia).....

III"""'

RegionAlInd, a_

Ch

~rnla ...... (So, (b) below) ....

Do, Mulmis_ .......... ( I-)............

Fargo.. - -

-:::: :: :::: ::: (North I

"

ot.a~

Milwaukee

(

Wisconsin)

_

0, ha

... __ ...... (

............. Nebraska) ------

(Miss-i

)

S . L , .......

St. Paul............. ........

.....See~(~tb) below).. .......

S,

_ ........

Albuquerque_ ---- (New M.sico)-,

(See (f) belom).::::::,:"

Ch.y.an ............... (Wy.ming) ----

Delta,. ~ --------------- (Sea (1) below).:----

Little Aiken

Now Orleans-- ~1,uixiara)..:

Oklahoma

C

it'

Wichita. - ~ ... No n a,)-

Waster, Roof n-. ............. -------_ -------

Archorage-__ ------- ~ (Alasha)_ -------

Raise .... _: ::: .: .:: :: :

......

on

H.nolu

Los Angel

Phoenix. So' I)""wi ............... (Admn.). ......... .

PorAland... _......... (Oregon) ...............

Ron-.- ............ (Nevada)...............

Salt Lake City.. ........ (Utah) ........-......

San (So,

smitl----------- (Washington) (a) below): ------

office of International Operations-,

Puerto Rico. ...............

Othe....................................

......

0) California ...........

(b) 11 1nqI1~,_k_.::::::::::

a Pon

(1) Tell- ............

Total tax Individual Declaration of

returns Income to, estimated fee

Corporal, an

Fiduciary Partnership Income Us Estate to.

(2) (3) (4) - (5) (6) (7)

136,718,328 87,386 093

19 544 002 12 323 397

1: 156: 634 761.708

3, "'J" 17, 130 2, 437"L7"' 2

3: 63

4:6"'

2,792 5

2 72:5711

1

796,485

323,644 1192:4 6

2,302,410 1,42 '35

3,399,105 1.7

7 4 '~ '58405

1

34

6... :4

0

0. 3 388,751

18,429,426 11,795,943

3,:2,25:151 7, its 12~1721.112 858

793:917 880

2 565~15410 IJ54.669

3,021,981

lyi~

" MI: 981

...

234

11,134~2.'1'0 12, 31

22: H

i

1:912'

G3:

539 1;284,787

1,596,577

3,221,835 111,19" 2

'

,, 13

714:904

1: 1"': 16

1.

5 08 9G 3" 896

L27~175S73:1421 16 111:974B,418

'

5:

..

'

I B4, 630

31:715:1477 51 2:111,470

5:137~543 I 1~l71 435

3 12 257 0

leg~a

4

"

: 741

L '

W

""`7~75'7 64 s12 3 3, 3

19,532,427

......

4

"1

2111227

5,11043:6 06 3,134

':

931

1,920,281 1,157 641

,6,:53

97

43'

211

G`

2'922~'9'941 '633,63B

2':Z33:28'7 N .,1174.551

f:121:,1534 2 S~q 22.:4011

3 112D

00

17,556,347 11.11:77

4'

7G2

666 ID

4

1

4,738:6586 3,013,654

17152:697

'91:' 3

1

3,4113 2136 2. 71

14 :334 .99

1:132:420 75.

2,124,993 7 132

1:412:424

1:23"'0151 930,950

23,060,142 26S 01S 14,999,427

173,667

542:942 13

332:71

.0

1 2

"'

3

1

1

590:479 31 117

8,757,617 5,5

004

1.411 7'is15 1,141110:111

473,621

311'

741,5;12 481,635 140

44:1 9 3 499

2

1:

2:4 7 642 8IL7 5GB, 60

... 260 :342.. 'I75:2'13'

345,610 276,083

8 102 814 1 732 207

1:179~445 '351~602

70,047 398

P '12

a

22.:.34 KlOt4'

256,846 23:4

153,793 K 21~"

12 :275

51 4:039'

111

44 .7

21.:1116 117

..

,6

2.7

31.801

1,104,965 26.~'125

"'

56

43,850

2!37~17'0

277,8110 935: 7(12 ..

...

39,053 2 1

164~DON 77

20,609 10':073

1,012 '25:822 111 173,343

21,892

87,640 14,859

171lig:571

9

579

23~336

4615:29 `e 37 7.': 79'357

DIB: 7"28 2.5'9: 711.9

'158,394 35,225

211:

4'

2.a 17~:33'

230

s

474

193,304 31,491 108

1115: 52~ 114 17:115 9

1,22171:4171 if 305,610

4

1

14

321:44 .,:3 2

140

"6

33,245

1":25 122

5

7.4

41:007

'2

12 432

.91:2'57 42:

07

7

1 :424 2 14

1

I

':

8

I'l 43 24 57

169,498

'57: 34 '578 5,461

221,571 13:14

1

":8'8'

,

'22

191 7a 43,311

HI2 7'

21:866

17:4.3

a

157

1

7 10,065

082:52

'.:'

4

IDG,849 1 7341

1,477,890 26D,821

7

4

9:

2 .70" 4,022 BIG

34,338 4,945

533:91171 51:767

47 2 10 868

,11:497 OG 108

1137:811 to

22 593 4

32:008

1

:016581 4

18,962 67,384

1

53~329 25,005

46

455

670

12 0

1

9 48

34~436 622

Total for States net shown above

: 252 14,902,609 0 9,378,9503 11 5874 OS 0 31

4

1: 7

3 131 2

':46. 68501,697 11:1'17:3" 7 4:'42 7 .4

1:5165:223 '0 .1638 4,365,100 373 81

4,635,596

4

32:189

.1"',

8,221,852 5,165,825 416,449 86,752

11205,035 2 349 142 160,152

134,313 469 572 25 991

7,893 21:521

3: Z.B7

4' IG "

18 ,

16 75: W 4

21: OG12

5:

8 IS

`10:

S i

!iTi 43 3,585

6,567 401

is 746 4

4

5 0

`3

2: 7

32,061 '54 130~ '187

2

R

3,305

3 15': 63 527'

s

'43 111,

320,646 20,287

21

3

6:34 111:353 034

3 639 1

IS LO

3 7.

5 4:

'

33,440 17: 13

's

1

20

29

004 2 3 3

2 j, 41'N9 44,931 3,115

2,184

'~7

19,531

10

123

324 468

151' 21,865 12 44:51.44

' "

2

11Iff: 2q'I10 25 4 1:227

22,938 1,436

24,538 51,245 2,86025

5 '49

45~72241 II

L:

2

11

9,4542

677

.21:02,1' 1:115

3':C I. . LIS3 271 1.

21

'04

S~2" 31 3,025

2 315

61~

374 4,204

2 4

'

42~34' 7

'

9

20 933 47: 17 4:2'14

18,871 27,41117 L.72106

9,373

179,495 2 32914:247 34,366

55O:~4 3 131

':4'1'5

8,0.1

4 93

20,155 363:211

'1:241

4

9

1

'40

0!

22~7'73 331 4:,315

'19':396

2 6

R

113

2

go

3 5 52,611 3,649

12: 2t: 7

4'

43 10 3,991

L7 773

1.1

4.621

194,111 6 0 286,D66 17,922 497

48:85 :76 4

10

5 11? 'S35

70 14

2

3

3.702 347

46,384 13:' 64 1:26 3

22st: 19:4 34 30

395 'IS

961

9 7

13 13' 42:4

IS

s:tB4 27 29

741 2 722

14,101 24,959 3,187

278,593 341,157 13,1391

4

30

4:33'

12

6:714S

9

G33 517

1:65R7 12 697

97 601

5 8

12:4'

104,828 122,750 3, 11:4

12,694 23, 377

20,533 27,

17,

1,964

4:

'

9 13 8.94 6 301

5

18

14,30

6

505

7 101 7 690

7' 27 913 38, 7.3 '1:931

Sees 739

39 'N262 29

270 5

6

70 710

179,929 191,521 115, 109

5: 596 1 51 68, 187 1014 2,071

85,063 7

45 "

6:229

ly~ S

7. 7

5

: '92's 96: 549 7 1931

3

G 8

94,954 117,575 7:

"I""(2) "la=1ral 1110, 1040A, 1040NR, 1040SS-PR. 1040C, and 1042.

3 1041

=

041~.

4~ 2 an

5) For. ID6

16)

"'I'd

5r6mr, 1120, 1120 Special, (Schad. PH, 11201., 1120M), 1120S, 1120-DISC, 1120POL, 1120F, ad 1120M.

(7 :r, do: For., 706 ad 70614A.(8~ Far. 709.

41PR & SS. 9411, 941M. 942, 942PR, 943, 943PR, CT-1, ad CT-2.

to, 8) :Zd1old.' FF.'r.' ', M4'~ 19. ID'PF: INGP99. C 5227 and 4720.

(III Includes Forms 5501, 55DO, 55DOd, 55(Rdli, 48ig, 4848A, and 990

"

7116k1,7171104706404,70 7~,47170100CSi,, AItoh .1 E xcr so TPI X Retu rrs, a n it Tooacco Exciso T a x Rstar t as.

'd:; F

2 ~OX" 22 11

13) 1"nc d 7H

2688. 4868 and 2 '!a F.

(14) Include, Forms 104bX, 11 Tent'.6131820L It M, 7005,99DAR, 4578. 53M Series, 5329,1041A, and 2438.

Table 9.-Number of returns filed, by Internal Revenue regions, districts, States, and other areas-Continued

Internal revenue regions, districts, State' other areas

(States represented b4 d1itricsd

indicated in Parentheses; total or other States .

hown at bottom at table)

United States total

North-Atlantic Region ::: ---------* ----------

AAllen, ...f,:: ((Ihee.,, -('c-)-biel-ow----------- )__

an't.-

Brooklyn B no)

U`u b

ajow,)':

--:- -:: ((Vermont),

Hartford

ManhOttin o.t,., --------- : : --- :--::

Podsm ~~~...(cab-p'shi, a MIPlawidlall d ........... _ (Rhode Island)....

-A

tiantic Region... ----

Baltimore. ---_

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

Newark.......

Ph,dIl,lbd,e,1~111 ((S:1 1:1) be Dw) .........

Richmond ....

a

))

bf,.1,.).

Wilaniazt-,

Southeast

Atlanta . .......

--------

li~nnigillnl Go ant isAure-) a

Greensboro..... th Clealwa)I k ........

('a

" Wd.r.

.. .. (

~xsissippo .. ~?:::

J ..............

Central

Circi~,raflt C d .......... (So. d

Detroit d) below)- .

""

'n ---- IMiN

.......

a

n).. ------

Indianapolis .... (India'na

Louisville .... __ (Kxrt.~kjj:'_:':

M

Ps

lko~ab

-'R-_-- ----

(

idwes Region. ......__West ... "girl")

I

d .......

bmal-- (IS.1.111i Ilk,

Des Maines.__..... (Imwx0lo)_"h.")_._.:::::::

Fg9D..............._ (North Dok)o1a

Milwl" Omah._.!':: (KII-I, No

SI:

S Swingfi,ld_ ......... (San (b) below) -----

I"th'1111 1111,n--

Alb,

al ..que _ :: ........

C

heyerne_ -------

A (See (f) below).

Usti` ------ --- (Wyoming)_ IS'

allow

Dallas D ----------------- as if

LtU.R.c I ...r ------------- (C'l*r.d

a

a

0 1

" '

hnin

Oki.

a.. 'j~

(Oklahoma) ---------

W .,n hjt1fi;jj;;::::

An0...ge.........

He n;: (IMId., I.,) --------------

H a n a I of u ------ ------ (No

W,.,n)a ------------

Los Angola------------- (Sea (o)

P11om,,:::__::_::: Portion LO',uon. an)!

a

.................. So (2Nt'~`h

" to'. City—

)d

Sanar, ... .

ISe,-,~x) W below) ---------

net n)-. ---------

ffice P of International Operationa

1-to Oth

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

~b)) III,'nif.IT's

d) Ohio-..-

'a) Pennsylvania .....

----------

Gift toa Employment Exempt

tax. o,g.al..ti.n

(9) (10)

195,194

29,884

1,431

994

336

19G

3,

9

5413'

4

7~ 'S.11

819

527

21. 3D9

4,270

4,321 4

2,: S`034

4,96

666

21:11 e '35

2

'

336

2 293

4: 379

101: 81~3~7

2,770

3 DO

4: 861

5,639

4: 632

2

1

885 14'

40:4111 1 43

8

300

5~ 746

"61121 T

4 001

1: 3

"

'

ji~4

3: 894

25,647

819

5,734

836

4: "al

3 1.6

7

V12

3,175

4

27:

12"7

1

13

7

is

1,972 5

7 1

I' ' 5

77

2,735

543

248

2,1 776

630

419

362

25 541 364

3: 686: 135

112

13

20

""

711

7.

59,

412:

"

6

,2

,

.4

.

389,411

878,528

1 7: 14

0.4 332

3,111 55l: 841..

873, 467

74.,32B 42fi.

167

,7"

998

,3,

3,970, 379 296

611 604

4"

:

1

61

331, 0

1

668,712

1,266,582

112

"

505 71

:

2S.

3,013,040

44

9

751

126: 7"

949.973

531,

369,812 0-

185,62

.

3,529,465 97.

832,453 4"

390.042

96.915

221: '21 II'll 417

457

419

345,710

3.13,5:15,611

883,602

66,830

74ss 741

':

.0

4

256,959

413

345: '73'0

al, 311:317 M "D

14

'

:

3?4' 13

,

T9 066

821

57 789

251~

323,543 572

113

768

1, 1

DID

101

483,987

1

477

": 793

714,694

Employs. S.Pplosmastel Plans ATF Returns Ellis. t.... documents

(11) (12) (13) (14)

516

12 '

213:11

31;.27 "209, 945

"' -4,751

31,427 37,046 1

211,,57

8.

9,

28:647 3

54,970 3

1

9

08

302,5~4

1915:537

38,958 M

,6,455

1

1:5 3

26 7?

,

312: T4

230,516

I~

I!513 113:1242 'I

13, 155 16, 719

- 7.741

27089 7"

10,438 37,682 5'878

55, ITO ilt '.'Be

2

14~11173 1

6 2

' 41'J28

14,071 50,519

24IG: 577

169

13

15,566 271 D46

-

745: 19247

37,045

42:9267'

If: "'

-

~O 24

15,556 14 145

- 26:214

26,D49 1 74,16a

1

74

5

3,2T3 11:039

'

117

:

0.,

12,776 13

15, 586

761

3,548

fi~ 94

Q

62,276 218,141

-

1

640

4.1111

4,

771

4.893

28,902 79,133

-

.

10,027

6

1

8,112

22,4ii 6':N'72

10,886

1

9,36

54

R

516

Total for States net shown be.

12

194

13: 1:

'1

1 7

': '0

1

78 163 17,439 2. 242: 4311

,

61 1. 0711

94 9.9

7:87 1: 4

1

14 38 1:63 342

51, 3! 145: GO 70111

-

129

41,69

70,707 72,

794

.

31

26, OT9 24 '

,

05

3

551 572 907 758 6,927,353 71:174 81:486 141: 73 7: '32

'

1: 2401

.6

4 7

4 2s

, 7s

10,534 16,.1~3'

18,343

1. 1.13

2'2'

7

: B11

2

'

114 2 6' 275:1 9: 41' 2L.192 Of

2 7

7,965 7: NO 162:1Ul'

2: 1191

1

12

1: S221

5: ~318

2 2

221

11: '4211 998

'

4

'71: 9"

-3

1 1 696 14,408 20,113 3 7': 3 2

1

1

101~,1502 24,137 '4 33,

11,436 N:

"

4", 1 1 3: 21'

1:2

Be

7, .177

B 2 ':

.

7121 121:47.

fI3

14

7130

f.2: 61.111 109,247

I63 255

I

W

7:23

1 217

L2 ,

132 21:050

7

0 ' " '6" 22~ 023's 210: 211' 319.2E,

I' "

172,244

77:?11 11: u,", 71

1 200 13,866

71:612

,5~

16

84~

4'

2

1:

051 13

4

417

is

5:

22,70 32 213 "4

S

102

3" '

71MI

8'

740

:313

12

3:

a

11

6, 920 1:.193~1 7:

..

6

9,

2 171

16 814 711

13 4 6,627 SIR

7R,

5:638 21:

'49

21

2 441

66:6136

2 0..

1: 95614

26

1 51

2,

2

1151:2'4

...

67,

': 1

1,1:'221

17 03

2 S9 421:21,3

11:4 7

10

2,

9

'

25,0887 115.924

127 57

85,444

2: 1.4 73

7 942~ .1

7 29

2~ , 27,412

':4 3 37

2 17 4,152

151:23576

0

96

L

12:3

'2 "

1

6,967 14:3.5'

9346,877

71

V

1 00

LID

"144

44 465

.2

1

15 74:091

1:160 17

Sit 75: 4

`0 '

7:30'

1714 79,371

7 70

2,318 4~3'19 1' '21

3 241 8,293 25:742'

4:392

'

150 30,549

':

439

18 944 31j431 2 "2 14123:" 117

7,710 17,' 1"86 212 21

2 237

1

13 25,346

6']45

' 1 72: 41'

2

':3

1

:302 7 4 35,948 2

1:

243 354:587 4 0: 14

9 395 2 721

1344

337

218

905 11,922

20

4

317 21 79

984 11,343

7N

70 1,11 141

2l 1

36,123

I

~5,

us

4~,

' '

322: 037 A 34.

,

I 13 113 25,644 35: 293 322:

'53

42

27'

8

283 62:281 124"1'21" . 53

91
92

Table 10-Earned income credits-fiscal year 1978

(in thousands of dollars)

internal and otherr-...11(Vt* "1. district,. State,

at.. .pro... led by TOTAL EARNED

single districts Indicated in parentheses;

I

NCOME CREDITS

totals feel for other States Shown at bottom at

.)

----- 1,6652 'In

1: '95

Albany.. bl**IAugusta.

I`M`~~,n(

.....

so

3

liculon............. (Massachusetts) ...

330

Br,*Il,n (1:: (c~ 56:

9110'I

(C Is ....... 777

He rd-. "221

'J;i----

57,

Manhattan .........

~Sae (c) bet.

Portsmouth.. ....... New Hampshir;j::: 198:13'9

Providence. ... _ --- (Rhode 2VI

MId-AtIl"ll, Rs1fln_,,,,;,(,,.,mP ,'0'3'9

,

~')

6

"

ricun.. .._ ..

73,494

Newark ... : ........ (New .1ley) ....... 149.959

PI ,it~,Iingb 1l1Ph~!::::::: - (San.,~:~ h:jmv b pw~: _::_ 113:113 So 17,

'to,it

.. . j::_:: "' Is

7

11.0in n. ( I,. LOis)below 11:'74

..

Wilmington......... (Deia..,O)

Southeast Region.............. -.:::::::: 1.231"~ 851

Atlent..... :::*:::: (G"ga),)_.__; ... 203,264

Birmingham (Alabama

. _ ~

::: 1,1,4:,12'

M 'ohxiPPi)_!_

JJg:1

Columbia ...........

(South

Carolina

17

Goruchor....

~N.,tr

111 21

Jack3,0

jacksonsifle:::::::: (Florida)...... ---- 277,442

Nashville....-..... (Tennessee)...... _ 177,605

Central Region.... .... .... 63901~2 92

Cincirvitfi. ,I'. (. ~d

. . ..... 1

896

Cleveland. dl~ t2w~ ..... 117:02

Detroit Michigan) .......... 146 '413

(

1,

I

"dP1Ip1!ix:.:: 'K1.dn't1.1~1k)jj: 114:72'

Lo."sit.

...... (,

7

6

71

M Prikesto,ii-..... (West lurunll~::: 63141: 111 965

Id

Aberdeen we" ...... Vitiate). 23: 59

ChiCale-- eIp'.j::::: 1 DO921

Des Mome3..:'::::: fSI.,_,T.1 ........ _ 53.809

i_ St. 5141

Milan, 76 20

Otralre ..........-

Neb.,ka)_.::::::_: 133~147

I

..... ( 34

286

Oil: pl."U.i,::_-~ ~M;,n"ne'r'.)fa)-------- 74,542

'Pri"'i"'

I

Sm0west J131~3DIV

"'" ---

(N:.W(M 1~1.1 I 1

4'

:415

A ohn.7"."!

(1 277 54,1

------ S, 171

) 164,34G

Dan D . .............. Colorado).......... 12,111

Little Rock...

------

(Arkansas)...... go,

585

New Orleans.. 141:7'1

L'

g

Oklahoma cjty::,-:: 371

Wichita_ ....... _ (Kansas) 49,

Western Hall on........... 1

S.,

11711

A"h"`!!::::_::::: `A"k' (Id.h.)! 22~ 53..8

Helma_... ...... ~g 11 112

Honolulu .......... R.1-141

17:45

Art, Sea 1hP._!!!,~::::::: 177d,204

6

616

Portland ... ...... (011, ----- ..... 59,101

Re...... ........

IN ..%))...........

18,442

Sell Lirke City ----- ... ...... 27.1

San F-chic.. ..... 202.3919

Seattle. ...... -... (Washington) ...... 72 188

0

Nice of International Operatlons,....._:

1

:816

Puerto

0

lco............

.. .

11

Number Amount

(1) (2)

1,138,623

130,732

1: 69

"

6

27

21,626

3 155

':

III

17

121: 7 315

12

3 78

'

166

12S~

.4, 111..

30,081

IS

273

1,~ 686

21:. 111 IIII

2f~~2 714 "I

42,261

"

:2"

22 2GI

4

2 7'1

9

1 37

SO:

862

36 164

12'

2(1~

7

237

21 '17

29:2~f

2'1: 1 "87

1211: N76

31: "' 821

10,516 2

21

1:

gal

14

27:

14,69120

J9111~ .4 1%1

57~,453 ? Z

1,686

33,629

12 36

":77,

3' is

1

8:356

743

1. 171

I4~ 149697

4,199

77;3 92562

131: 929

Bill

3:640 5

41 408

141

14:

219

353

226 126

APPLICATION OF EARNED INCOME CREDITSFILED FOR APPLIED TO

EIC ONLY 2 CURRENT LIABILITY REFUNDED OFFSET-FRDZENI

Number Amount Number Amount Number Amount Numbi Amount

(3) (4) (5) (6) (7) (S) (9) (10)

3", 31,8, S,li: GO, 11 ,120: 1'1,~ ~ 1,177: '13971 1,2711,114 879,951 81,303 11.176

"2:711 11,1: 54"

9

,71 1.61

29' 84 7 12 52 46 83

1

154 130

Is

1: 370 ,7 14: '72'0 1: 37. 131 ", "1: .11~3 I. 423

4,21 71, 11: 02,1.5 1 331 13: 326 213 751 1, 1,7 1

141 482 2

..

3: '14 529

1': 2

111 1

': 5

1 1 1

G7

65 816 38,630 4,307 67: 3 Z11 06 1 7

J:3911

If I ' ':00'19' 2,48'02 1:'

11

1,714 122 24 If ..

1

8 535 675 108

1,011 s7, 1,104,1 483:111 389 4,234 131: 212,27 121:63." 2,111 36

942

J 192

2

656 121 7:739 702 16.092 1

3

222 43

26 330 5 119 26, 415 27,489 470:3323 '15:354510 6,933 1,072

2:

'2' '01 3"20' 3 IN

54 49

5 11,214 830 125

.427

1

044 11~9011 5:9 1 114,095 I." W~ 232.: 111 1014 334

51649 1,039

'

4,2 1: 5

1 242

3,992 697 3O~2.016 '3~ '5726 6D,438 12,053 698 J167

1 7,

6

1:487 1,387 15.11,,1 1 111 11:13.1 11 5811 1.213

528 320

1,

;,2, 21 6:2 5

572 82

IG',99 612 18'.0 122 5: I'm 603 10,592 2,173 145 is

1182:,a 1 138: "7 111:114 199 0- 1' -20 1, 134

'2:17" 2: 7'

747 156 630

33,193

1:

256

3,,

1 1 2 152 54,838 1:111 1813 1811 24

..

1: 31 201

'I 111 1:107 3.711 490 4:

0 1 1

0:242 2 17, 7:601 149 174

"

2 31 3

7

14' 31:

'7

1 11.

6"

25

791

1

1 1 :4 2213

":J,'~' 1:403 N

136 4 3

7:812 43,792 4,

127

14It, 1 . 115: 536 12,418 2909 72 162 :N J~.. 4 TOO Jsf~7 73 4, 7:,7, ,, DO3 2,;.

682 236

25~474

1,

2, S. '02~tirp a 23

S'

6~12 12'

3

...

4' 4 1 7

266 15,7G5

1 7 1

41

1: 24 613 45:42'0 4: SID 71:123 11,201 114 13

'

1

70 039 11

'1

~, 7 15: 516 2: 'Oul 22 1,372 212

3,499 650 5 071 54 83 ' 4, 137

765 1

0210

9

7,127 472 113118,18, 1J~740 11 742 18 312 1,06 145

2:3579

5"

NO 39:3

DO

7:982

332 51

24 28 4 VA 297,912 1. BIG 1,627 1.1

026

2 13 9M

.62

06 17 03 1:7JI

1:256

J

7,

1: 63 120.416 44'1 4 243 7 61:734 6 21.7121 1,443171

2,020 3

6 21

JfI28 2110:111 11 71 37J,: 17 69

684 333 :349

72, :864

IV 15

3

1

31:7111 46~463 443 1123:3,1,7 104:,4413 71261 1,142214 1, 26 2

1:425

IM

11 3~121 21, 1 1,254

2~'996 .350345 19~ 1134 4, 79'43 "1

51

.4

1 If

6 flat

7'

1:359

544

87

2~3 367~ 76.

J.: 114 46~ %113 S2

14 14,053 1, 222 149,947 10,643 i,69D

on

..

3 7,145 163 93

4 4~ 2' M

4,,

675 3,279 531 21:42 5,313 9. '1 10 47 23291~645

433

79

4"1 47' 6 '7

1,

201 14

697

" ""'

7. 2. 7,672 .22~'WZ

25,

592 2,27879 V

5

2 , 26:702 7,892 46,65 805

"s

534 5 9,369 13

1

7,710 630 1,4~15

" "' 3' 1

1 941 32

10 2,438 52~2190

:12 11 14,311

4,~970 583 196 6 24:281 1 1,265

936 3 1 7:'1 3 Is

'1132' a

Is

'4

70 778 959

'77 636 3)4 241 2:

83

3

79 1

55, 411

043 11,519 337,270 35,039 690,03 J43~365 777 2,767

122 23

49

266 921 74 12

7 207 10: '1454 1,261 141: 4

1

2 '

017,6 228 9,919 1,192 15,510 2:98f 223 36

742

5,126

1

7,097 13,13'

'3 1

2,546 138

10, 23,930 211 32,135 674 29~ '917 62,642 8,864 1

4 724 930 24,959

2,

53,700 11:21

1

7 "156

2:

539

460 24,238 2,565018 44,687

9 085

NO 117

340 66

'

9

"

2,769 233 Q

16,

1

3

4:11

.2 1,208 241 1.: 4. 1, 231 131: 327'1

ISO 2"

44

401 3 46 74

7

57,589 2 1. 3,274

7 :736437 3: 71'2'1 14,031

1

2,74835 511 30 51, 1, SO 705

0

118

2 47 1,5494 296 5D

I

11 3

110 a 51

..

2

28 6 401 Q

939

180 41 7

Touls for States not shown above

C.Iifn ri........ 579,603 119,097 40,331 67 11 11 2~1: 216701 41 121 1.10 12.131

1 1

": 1 166: 5

b I ......- 221,871 44,279 6 1: 205

'07 1

0"

0: 609

He- York ------- 400,115 80, S71 2 1 4,354 11,301 16, VA

3-J - .2

765 6,716 1,7 11, It7, 1

'01 I(UhikPi__._,:::_ 2 4 ~421 929 1,263

078

9,236 S5, 3 910 "

0

959 9

64 736

2,

292

,

105

6,189

4

3 1 1

10 16

041

33

506

2,

199 P,itoylvari 223: 1'74 43

~2:

191 ':

1

268

17,

7

1,

g) Texas- . , ~ ...... 441,889 91,083 7 39 168, 919 344,297 258 557

Baltimore D is- ilt

ird and(MeD2.j. 114,668 Z2,717 4,153 1130 49,369 51011 $4,270 17,499 1, 02

2.192

1. 531

139 27

348

906

207

-

Irdinfin Earned Income Credits claimed by taxpayer and all. responses to notices sent to and returned by taxpayers whole tax returns showed the characteristics Of but who

did not claim Earned Income Credits on their

tax

return'. Data ate to, current

is

7Limited to text.Ey"n' a ad~Ibn'cofim".dCrebi, dit rWPPIT atonly txo claim I J,, Earn ,d I ncXVc,"Idit. in

he number of

cah , cards

the

total rum

bar Of such credits in GOP- :1.1on P; md.dl and ppli-Ily applied

0111;PE,IdnId 't1hC.1r1te C~red,,,t, :IPii;X,11 On I ,IuI II Ih. . in I. I

shown C.,

mail -

n

1

Is

'i;r. 1. YddId., to room uig. , account,. I a outstandin balance due. The amount, r V.

Earned romr. Credit, Ian ...led I

ot . ,a to be nt I

Year liab lilies, and those generate it but temporaridly oriapplied Pending resolution of taxpalor,

The United States total or Column 9 includes 11,505 other Earned Income Credit applications which are not available by shrict an region.

Table 11-Number of returns examined by class of tax and by internal revenue regions, districts, and other areas

Region, service center,

and district Total Individual

N.rith-.1hun T"i '350:427 uld Atlantic 2181: O'I'l

nl,,l

C?.!it

'*u.ftl.,n_*111-:: 2.1:.402.1 5JS

International Og.r.tl.nl

Norlth-Allartic egion:

24,936

A

Aust.ifte

Boston.... ------------- ----

47:8666

B ocklyn Hit -------------------- It, 3,

u

3,:,2,

4 316

Hartford -------------- ......... If:

"it

Manhattantl~_ ......... __ ......... 81,524

Por"mou Providence................. --------------- 5 Ul'

8And ki01-1 Service Center 956

- IYn S-fice Cents,- . .

19072 MId&IktImrtlc Region:

Newark ---

---------- 11

":

3

PhH,dePhu:__::---::--------------

73

,

P

h `

h.-: --- 676:

948392

Zhho'~`d

_

Wilmington,. --- ___ ------

---- 40,273 Ph 11,

07

...,fl.delphl. Service Center., ,

12,

9929

""'

Ili

Atl.nt ... . .

Columb

ja-- ------------------~::::

Nashville .......... :._: 354: 61511

h.

I

At ants Service Center. --------

C Memo ,, Service Center ------------- 16,635

'"nIII

R

T

1,

Caull-fl! ........... 3

Cleveland. . . .--- 39':803 '1

77:11,

3

1 ..

PCall,

-rIO.r

"----------- 9,627 .,

inn.li I i

9,419 ............................

Midwest Regior~"

Aberdeec_ Ch ........ ..........

D

-j-..... ..... .......... A,' el eiries... , 727

M,Fargo.. ............ ........... 1,324

awrhu............ 3 927

. b

1

'6:

St...Lou..................... x. ~ .......... 46, 14111'

St

P.

Kansas ityServic,

24: 3'

C C,mScot h'w':!,R'....... 14,909

Alb.o. P,!i*.n: .. 8.391 Austin. .--- ...... 58,

909

DoHis

......... --- 63:357 GO

nvi 2

"

`Yr"_ ------------- ---::

4 0

18

Little R.k--: ---

161:

0 ..

as, Orleans............

727

Oklah ..... 3,:,,1,

W,ca me City.........

2, 1

Austin 117,,191,1

Anchorage

...... Western R"!*n,:.

ars, H ... 7 141

7:

..

H"'he, ----------- 7:

Los A.,.jjj:: 717 D .....

Ph... is ....

235,586 P ------ .......... 25,995

grUalid. . ------ 1,, 27

.no

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

I

I

S~Wl Lakin City--- 1, 43

11,998

n 11IniaxP__::__:.

......

I

Seattle_,. _ 15,165

Old,. I...ic, Cents, ?": ON, I's-Service Cents,-. ....... 34,401

SobPartner. Fidut

-

Chapter I

sh

He air, r. ., GOration pre- Estate

I

'

945 242 27,828

272:877 III:0 'J 1,113

167: 111 3,251

.12" 1: "D13

224

537

211:11.2 4,9 . 4'505 I:

922

20,780 5

11,644 139

1 1

:

071 71

33

1

418

7126:8115 112

2

455

171:13~1 34 17

174

59,335

114

3: 882' 13'

12,:7'12'

":10 71C.. 1, "21 Of

71

:6G2

312

" 63'

7

31 303 4 '

3:572 75

.2

,

992 -

41211,111 , 114

747 462

11

029 302 212

5

1

7:113 Sal

7,

If,

,I, 20.154IS "'. 502

16,635

13:,11,1 27 131

455

'0

4 111

23:'2'43 522

16,396 371

6,936

1

9, 43

419 -

Exempt

else Eci O,g.ni- Employ.. Gift E, ... ration Plans

11,542 147,340 13,134 33,416 11.627 95,695 2,049 29,835 2,628 6,734 2,115 12,364

2,061 20,353

t:3-6 I .. 12,274 I 1: 721 43~ INN 12: '1'. 1'~:,32,

2,034 21'~ "I591 ':2 219.. ':.7.31 5 1:2 GOU3'

1:140 11:,7.31 J 1;,197~1 3:51~143 1: 311 131:~2,13

565 20

1 1 5 L I

19

238 4

685 12 363 79 114

48 W 62 368 1 127

66 70

602 1,MS 3.1 Syl

2

.I. 'SO 660 178 1306 2,526

3: 11~1 117 1,413 17

2

068 283

15 2

26 737

2

11

1

:712

]a

202 50 51

9 lg

337 467 298 069 400 052

6 780 774 654

6

2

42 533

6 04

1: 2

28

4

21 11

6

49 940 2'

6, 12 3

1 26 337

112:4771 1, 127: 721 11.31,

16 92 854

22.207 2~2 D"71 ':2 "'1,,

14

WIN' 22: 1'3211 L: 1731'

2121:,146 2:,7JI 114

1.

1 1,

625

2,1179 -

637

917

2,978 1.211 274

,

322

561 no

1: 965 -

254

1,436

3.06

1

1,016 210

313 '8

a,. 311 I3:,121IS 201~1 "JO112, 427 3,180

528 61023

2 2 06 52

I N

7

263 660 217 6 3 3

44

6 1

169 109 596 279 N7'12 220 2: 532 213 413 11,

1:86 2,684

1 2 12

1

135 588 34

105

23

2

1, 1

:333

1,439 547

3

1

4 2

697 667"

1920 3,121 289 462 395 3,960 4,801 1,147 1, 3D9

I

1 122 2.

7

2. 141

2"

2.14 '41 13,3 -

1: 2

Is I I

25131 36 2,734

.5

45 3 42 195 1 31

'

707

67

1, 2 27

566 11 '7 2" 1

1 1,121 2:117 1 19 719 1,167 54

5 864 932

&GO 7 5.01 4: 48 2 151 146 343 251 11801 2 736 -

285 3,049 160 1,111 111 263 21,112 2,833 11018 2,696 3.571 11 OW

34,

460 35 111 3,006 2:1164 111 11,

1 '2

1

9

4

.7 '1. 0,2

286 1367 75' 7,11 333

1

1

96 :141 2,465 106 1,644 124 388 81 645 1,462 GO 953 DO 1

50 70 354 845

61:

335 1. 98 42 282 65 168 53 194 614 - -

160 067 692

9,

131:011 313

611 692 1,42 3 3:29 6,34 673 398 1,

8

17

93

203

35

425 272 702' 314' 2 3 2

1

1616 2, 454 -

23,924 378

3,

2 23 272 1

670 462 771 24371 f1'4 '0' 1

3121: 21,1,1 113 13 171 173 509

1:,733 2

678 257 4

238 .3

: 5314

290 248 77

86

1151: 931 1~151 21

2

:711 32 17

5 139 1.4780 3: .11 20611 741 .1 5

9

,

7 64'

3

N 1'

30

2 44 1: G

14 909 - -

125 1 04 .64 2

.

253 3,133 2,417

837

6,395 IIS

43,411 :, 231 253' 3.

0:11EI

JO.~ 23 3

304 3, 683

100 590

1220:4111 271 4 i 074

13 5

55

,9:2

0

'08

6

1:638

157 435 35 702

111.91911 411 i

15

503

6,

I "

158

a

49

721

13

7: 107

5:0

'

I

207 2,

1

111 21: 921

114

4

13,036 3431

2

,

"'

I

9 473 "

95~997 1,716361

24,12' 1,, 11,

601

34,

401

37 75 42 428 864 -

374 618 212 1,170 4,271 1,574 1

47

30 2~7 295

-

402 797 311

224 441

3.071 1:5176 1.144 213

38 2,632

2

64 - -

2144 237 64 1,207 1,54

60

3

73 93 2,231 22: 32S349

200

4

2'

1

-7 411 113 21:321 .35 3,113

21 284 21

30 371 71

23

'69 110

9'

82 723 43

124

447

7,

961 501 2,21.

14

1:

7, ISO 146 301

1

211 14 315

35

557

45

7

5

76

1

237 243

"

" '93

638

67

1

17 2:292 3.0 435

10

32'

25 424 7"52

39 567 690

" '7'

413

352 3,677

,

102 824 1:888 554 819 992

23 599 1,489 -

48 887 640

3519 459 988

731 22:'12124 1"' ON 46~4~4 4,,'

93
94

Table 22.-Additional tax and penalties recommended after examination by class of tax, and by internal revenue regions,

districts, and other areas, fiscal year 1978

(in thousands of dollars)

chapter S.b.S Curiae- CorporaRegion, service center, and district Total Individual Fiduciary

fish

tim.

Total...........

----6 281 1531 785 321

North-Athinfic... --------------- ::::::::: 1:207:875 '292:376

MI iAllintic.. 718 043 211 590

Soud heast..------ --------------- -- --- 763:222 298:290

Central- .......... -------- 696.7u 1711,458

M1 ..at ............. ------------- 172 ,2,:7.61,5 2.117~612 "0

Southwest... ------ ------------- Western ......6j;.... 1,005go:,110 1:1,5

Into ation.1 04 29 12

North-Atianti, egi,n:

Albany.....--------------------------

3'

71 1:115

A.

justa... ------------------- 3:'2,

, ",

Boston... ........ -- 146, 972 31,398

Bnel, yu

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

BI

...... 132,115 51,933

eft'lo..... 7:

3 ------------ ------------ '1: 9820 '3 8

Burlington,... -------------------

"73

Hartford 96,055 14.452

Miunhattai 629, 113 1234:172 5 P femumth ---------------------- 22.

Pr.'14din,................. 14,022' 1,121

Audev.,S... ice Centel.-.--... : ---

Bhooklyn Savice Center., ...... ::::::::: 126:28IS 16'0: 08

Mid Ntantu Region:

Baltinn, -------- ------------ ---- 128.209 37,518

Newark ---------------------- 157,731 43,12858

Philadalpha.- ------ ----------------- 115: 1~1,5

Pittsburgh R -------------------- 02 '7:'763 IG

ichmond. . ---- ----------- 79,896 30.274

Wil.inalun ----------- ------------ 42:64 3,,985

Philadelphia Service Can

7 .......... 12 027

12

027

South set Region:

All...ta . ............................. 111,3701 31 11675

13

2:6

Bi-iniha ----------

2

-----------

C Whible ------- --------------- ::::::: 3f:628 11,807

sic

l14 9~7

'1 Glesculm, ------------ ---------

Jacks --------------------------- :::::: 423~

2 5633

jecks. .It--------------------

7 037: 319151

111011:2541 13

AtlantaS ice 14,766 14,766

Mtmfhls Service Center........... ----- 16,253 16,253

Contra Region:

Cieciunst

12

Cleveland ----------

48

"

0

UNI

I":

9D 28

Detroit.. --------------------- 271,453 47,78625

lndi..F,.Iil ................. 13:747, 32:36

Louirviia ----- -------- -----------

liq 13

1.

------

1:177 7 11 35

2

Pirkii 0:7113

Cincinnati invice Center.........1 35

Midwest Region:

AbIldipen.. --------------------

3127: 120643: 04 IN'

De. 261G.

F. go ------------------------- 1:19N 9:3

Milweek---------------------------

110,985

18,262

------- 28.211 8,31

6

Omaha-- ----- --------------

St. Lou ------------------------- 151,11 '21, .6

St. Paul----------------------

1

13,711 12.

Sp6etheld- 73,650 034

------b----------

C. 19,058

Kansas iUservice ente-------- 15,972 15,972

SoAulIbfita"'I agion:-----------------

Ausft ......................... 328: 242 41:47'113

Cheyenne. all -------------------:::: ------ 12,602 3,188 4 0741I 11:7

D---; 58~

8 15 217Of

Little Rock ------------------ 35

Now Oflears.. ---------------- ,:385.. 17': 202

Wic Okiaboma City-------------------------- 83,116 5 26,140 074

Auu;lln -h ta -------------:::: JS46861 Ifi': .6

Western Reg on:

Anchorage.. a. -------------------- .......4 1', 147

4

in-- ------------ 0: 13 ... 4: S -US

Haunt.......... -------------- :::::: 13,753

He. lel... ----

------ '7:"0 55:' --------------- R'S

Los Angeles---------------- 27 125 122 0523

Preen! ----------------------

Portland ............ --... :::: 151: ',1, le: ER

Ran ------- -----------------

- 6124,393 31.71311a

S-11 Lake City-. ................

San Rmicis:..... ------------

1 :6 547

3 986 85:186

Silent- --------- ----------- 6.2.21 21,110

Ogden Service Center... --------- 557 17,557

Fresno service Center -------- ---------- 184 IS, 194

-Leas than $500.00.

Exempt

Employ' organize.

Estate Gift Exiche ruserit timns

4'

922 3,299,235 30 860 632,145

3:736 742,69D 4,622 116,454

11:171 1 111,111 1:2133 49 252 1

37.2 If

7M 2742 SD:292

1,642 406,659 2:1.109 71 111 9

411: 4.1B

,3 69:.S

~475

9

561 454 J,7S7 72,237

046 490 545

1 21277 71 865

3 29:645 2j, 799

34 26,202 1,2

69 6,863 9371

17 12 385 5 10 441

L "' 311 2,:247 56 11'111 8 3

32

33' 3' 11: 13'23' "1 583

127 7,111 4 ': .04

2,7

1,57

7 14It28,327

1417 544

41' 77: 914171 103 1,147

78,703 140 594 247 623 21,738

14,469 7:070

25:140

21

6 3655 702 59 103

8:533 86:6951 2.21149

1 93D

1

1 INI 11,611 11 27107 4,13

2

2:5

9, 93

6:,

fil Us

5:966 7 7:21 11.:I71 971

7908 934

Sys 2,32f

702

-

138 191

2,

639 113 111

19 216

'55

9231 421 983

1: 4 3721 IS 3721a': 699 9

95 20

8 21 285

13: 1912 8 7 1:,2,795 2

a1: 91~152

166 26 73

2 15 62,495 319 13,509 3,522 ~,7114

S SO 117 1:2I

78

1

22 7:

.. 451

1

726

a42

77

8

Its 688 2479

0

781 616 D67 5,187 179

is

1:4

7' -19'2'

17 '24

1a

711

1264 58

1

13

35:43 24 1:67

44 '6

a

3 37,273 510 234 154 44

4245 14 57,295Z 170 4,868 2,738 719, 725

42,

If7

6,147 633 534

121 12 33133

3

1., 24:0 839 1,872 341 391

1" 6,363

1,

79

1 045 765

208 8,222

2~

1

94 2,911 2J3 141 069 2116

4: 622 64, 97 1 at 22,910

58

61 631 64,684 52 5, 366 470 --

171 4,2 41.1if 241 14 62314 St. 3" 4:1 1 0.11

1'3 58

9:3

DO,7

33

5 621 1,925429

1

6

4 11: 15 24'1' 14'1 265:42774 72.

187 43 13 242 594

IG

a

26 7: 6.. 114 3:37'1

5 65

--

1. 0,W 3,113. 1 127 31: 077 -

294

82-

245

1, 2J2

526144 2,700

2,: 2s: 5161,

1001

3:51371 6 4 3,14 2

114238

15 126 12 2,440 67 1~61 53 3, l3t 24: 5M7 I.I'Sa 3,135 14 16 61103 6,996 117 82 - 2 :

03 :4 1,6 18115 150 ' 8

R

1

42 5472 12~ 184 4. 77

111 17 27 4:9403 149 4,052 21,565

26

9:874 1,96,

4

9 :1 58

5

1 76 255 217 2 1

:7

32 4, 7,4

1 1:1 577 512

7 27

'

I,,

I

,

I

,9

.3 67 38

a9 6,89 43 8,9520 1, 84 172 4 285 1 5,921 546 663 - - - - - -

102

Sal

2 639 226 98 506

-

4:

s,864 1842: I'll' 54 75,S52

6

104 J..71 4,0~ 5;2

4 81 111 6831 431 24

"I

1,602 21, 2~

3

54

5,

4404 1,598 2,18866 4T2 680 1

21:4 15409 650 1,145 1,264 5,45

56 10,995 4~1 4:11

386

149

Z6 120

476

'1247'2142760

40:~G`l 374 7,815 1:003 ,56' 510

a

14641 25,507 178 5.671 Nat) 829 DG7 - - - - 1 1 2 112 31 305 45 358

4'3 39126 1,9136 91

6

25

133

If 17 6

24

318

7 107:1 61730 27 46

7

703 32,144 3,607 3,182 464 2 737 494 36 U.N9 2, 1 1

77

87 31,317 S,0'25 5721 332

261 147 216 17,262 9,077 2, 157 1 150 176

If: 1`2 , I 6 731 SS, ':9'.93as 1,433 1~296 2 2, 21 9

720 087

91

1,295 27,635 57 696

24 31 227

111161 IS L 70

552

1'

2, IT

3

997

1,363 3 !1 J,393

-

Table 13.--Civil Penalties assessed and abated, fiscal year 1978 (Dollars in thousands)

INDIVIDUAL

Delinouency-----

Estimated Tax—

Bad Ch N call ...

....... ----- , Oth"T'- --- ....

7, Sl 311, OTA"j CORPORATIO ............ 3

Dfi nquiuc, ........ 19511:

717

1

1., ';

"'i"hul

T.,G ---------------------------- 54

ftl ..

Tax

ledel.1 66,2,275

Bad Check ....p... .9 1'5147

......... ..

--- ....... 2,920 .41 ~rtzc,

He TOTALS ------------ *"----------------

75

EMPLOYMENTi------------------------------

447,554

.1 -------------------------------- U; 2,011.214

us --------- -------

-

-------- ......... 2: NN F,.d1'u,7l'To.p 2,370 ..... x 50,925 Bad Cho,k- ... 2, 0 0

12 ,79G Fraud

XCISEOTAIS --------------------- ......

E

6.E27,458 ".9

'D.'l1 ---------------- 11:251 3

Failure

Federal

to pay...

-

Tax Deposits.

Bad Check

-....... . .....

-

rrin

------------------------------- it ....:

OtheTr6 ----------

ESTATE

TAJLS-,ff~ ....... .......

ANDG

Galin

1 "ccY ------------ -------- ... Misce ........ limeou- ... it ... Din .,a to

ad Check..

HFraud Ax TOTALS

T RETURN ---------------------- R` ` ` L"`Y

AS ,ESSMENTS

A be

2, 708, 434

3, 798024' 892950

90,978

6.736

66 143

33,

21,702 926

629

190

93, 58

759

16,57139

24,324136

57

71 41,243

allure to Sign and Failur

e toPrmAj 1- doTx Ider. tifientlor Numbers...-...

76,200 ALL OTHER

29307, 37779

1 :

--------------------------2

Cliatil ----

-----------.........- ... 185

Be

it

.......... .......... 3,

71 Fraud 51

Negligence ---

One ... 55

"",-----------------------------------

23 To ALI ...........

TOTAL ALL CIV ago, 87

ABATEMENTS NET PENALTIES

Amount Number Apount Number Amount 2121: 1~7.5 ...7 S4 205: 843 610,780 1

00

2 94 333 7 711,71, 79:497 13,111 34 137,133 994 3,445,187 75,314 , 77 3,191 2 '

90 87, 787 683 IJ253

307 .15

7 29 31.868 9,319 5 1,705 884 61': I438 3 00 288 26 6,919 '1473 440,26D 605,049 57 658 6,961,264 390.61112 91,1:414 l 1, 832 4,,.1,101 S.. 20,455 7

S: '4. 5a 113 870 43,64.8 39,3441 28,3423 126,894 15,30

J,SIE3SSI

50 152 30 6:976 33

6

20

2

1

Ball

1

507

I'lla

'51 15,1

314

2

3

68 '136 228,234 76,990 123,702 370,564 104,533

111,774 1 135,891 36,700 1 1,9441: 343 150,074

0' "1 957 683 Hs 11, - 316,113 2. 12 1

184.487 57 SSI: 138 2124: 1.

1 1: 53'~' 2 4

57.

2

27'

2,844

1

`12

1

...

1,460 36 6, N194 2,6475 21 33 856 ID7.223 111. 12 64D 200 5 296 4

5, SV,

258 420,631

3,869 ' 4:9 48 699 26,765 71 20.895 681, 21:030 1,322 "135 3 7 261 732 26 79161 1 0 3 4. 3:3

1,

04 18:3 2,65911

10

1 367 111 36' 1117 1 3331 5

21,65`1 24, 41 54 310,2117 74.108 5,658

22,315 :,203 115,469 2 10,37 12 4 7

10 10,8456

11,18

5

657 95 15,559 2 5,893 31 64 is 79

17

142 124

t 32' 3 1

IS

1

17 72 3 33,822 14,933 16,914 26.310 16,208

7,612 10,300 1,840 65,90D 5,772

11, C71 14.1 471 213 10.608 191:411 2,.:632 6,115 7 28,881 125 248 494 4,811 2 1 .9 45 2 2 3,75 16

is-

4

(111, :2D9 48 -25' 53

20

5~821 418,957 J5,398

6

J3, 297 OD 426:323 . ,

709964, 3l 959,492

year

Notes: Amounts may not add due to rounding. With the exception of ES, penalties can apply to any tax Year.

Ab.tmp,n , . .ppIy to any tax i :Rcluddes Taxpayer ldcntifi~aflon Number, miscellaneous, Failure to Report Tips. 1 1 n'cluda,' d~oi'l ',x!1`in,u9,ncY:

ru~.IT.

I Includes Forms 940, 941 942 943C

A Includes Estimated 1.x,'d.jIj ddj~quli negligence. jl~c "11"d:,, ud E. 11tr,1 xisal1,P is711-

met'.1d'ITI in sc;,4 720.

Period covered "I"enceii is January 1, 1978 through Secure

r 3.

m These penalties are from processing of individual returns only and do not re. ` ' is

under the Tax Reform Act .11171. Id, ""'1`1'.A`cdZ's

Fm'.x"1s'4T.'j'0G5, i5,329,

v Section, 6694 and 6695.

Includes Es 11, 11 B, IIC, 730, 2290, 4632!

Less than

trusted Tax, daiy delinquency, mi Illirecus.

500.

95
I

96

Table 14-Appeals Division processing of all cases for 1977-1978 (income, estate, gift, excise,

employment, and offers-in-compromise)

status

Number Of Cases

1977 1978

"' 1

71 39.98

32.3

st

33,392

Disposed of, ......... ......................... ---- _- ------------------------ 31,347 31, M

22,309 22, D9 By agreement-... ...........

Unagreed: (Ovefau.11mentl. c iarms, ------------------------------------------------------------------ excise, employment and offer-in-compromise rejections). .......... 2,492

By taxpayer default on statutory notice or dismissal by T;. Court ...... ------------------------------ 2 378 2 98

5054

By petition to the Tax Court.. ........... -------_---_---------------- .... ---------- 2:776 2:612

Tried in the Tax Court. ............................................ ------------- ............... 1,402 1,742

Pending September 30.. _ ... . ........... ------------------------------------------------ --- 39,977 1 42,227

I Unadjusted for cases transferred to Counsel under Rev. Prec. 78-9.

Table IS.-Appeals Division receipts and dispositions of cases

not before the Tax Court (nondocketed cases)

. A. Progress of work

status

Pandin

Recei vad... " October ......I ----------- __.......------------

Amount .So stated In revenue

ra

to

por

rt

(thousand

dollar,)

Numberof Deficiency Over

Cases P.O:ltdy orent

(1) (2) (3)

,1~'711 I 1 313:11 180 257

a

I

D9

:,'0

735 55:651

Disposed of, total...................................................................... 19,147 1,265,549 73,311

By agreement. . - . ~ .................__................... __-_---------------_ 123: 427

918 112

69 411

U O.1-d: (0....istino-ts, claims, ascm, am purn,mt and 01, 1. ..Pro.is, lj-lilnl!: -

24

37: 259 3:91M By

taxp yer default on startutory notice..................................

_

_. _

1,054 52,565 By

paition to

the

Tax

Court transferred to docketed status. ---_...------------ _... ..... _ 2,612 253, Girl

Pending September SO__ ... .. ... ----- ..................... ---------_-----

S. Results obtained in dispositions

Method

2D,718 4, 688,133 162,597

Appellate determination

(th ....

of

delta.)

fill Deficiency is 0 or.

sures -

C.... pn:ltdy point

(1) (2) (3)

Disposed of, total,_.. .................. _............... ........... -------_--_- 19,147 761,100 95,038

IU =1(n ----------------------------------------- 13,427 414,390 1,1: '3191

4~.;i ------------------------

S

D essments,cliexcise, employment, and offer in compromise fejections).. 21 D5144 3011 17181

I

S

-

88 taxpayertoefault let, .,y no ___ ......................................

y

V. on the Tax Court transferred to docketed status.. ...............__.......... 2,612 259,924

97

Table 16-Appeals Division receipt and disposition of income, estate and

gift tax cases petitioned to the Tax Court (docketed cases)

A. Progress of work

Status

Amount(stated In statutory

notice

t

housand dollars)

Number Deficiency Over.

of In is, and assess.

Cases

penalty

ment

(1) (2) (3)

Pend~nir October I... ........................... ...... _... . . .

20,2232 2,642,694 NA 1111111d

... _ . . .. 1

3, 84 9112.100 Pat,,,.

a

Division-'

Appealn0lit'din ---------------------- siist~a~t'~u~toe'rfy~nboitiiicreisif6iii~f~ri7

------ ........ ......... 1':328 3" 2"':26 217

Disposed of, total ................... .................... --------- 11,947 604,621

stipulated ....... .....

... 8 671 4GS, 113 NA disirl I

bafifeemen"- ---- ~tx._pe'yar_Jc4u'1i:::

...... TriedBy before the ~.t~"Co'u'rt'o'n't'ht.o'merits, 1,142 109,215

Pending September 30 i_ ----------- ....____ ... ... ___................ .... _

21,569 3, DZO, 963

B. Results obtained in dispositions

method

Appellate determination

(thousand dollar,)

Number Deficancy

C. asOf In is. penalty and Oriment

Disposed B of, lotal_.. ------- ___ .... .............. _........ ------ _

yy stipulated ........ 11,947 275,198 NA

itlurimsal by the Tax Court Or

tax

1 15

14

1 before the To. Clod on the nicd

I

: '53a 12':

1

12 Trail

.................. is 1. 1,742 109,255

r Unadjusted for cases tr~qsferred to Counsel birdor Rev. Proc. 78-9. , Represents amo

imis petitioned .

Table 17.-District Conference Activity

Revenue Agents Tax Auditors FY 1979 Total

""'P'

ncfln~. ,:-

Cases :: 0,079 7,819

O"e

Rn ------------------------

....... 16, 776 30 673 C'n"11111 ..b,r 11, it-: ......... _..... 16,771 K. 119

Agreed as percent It Total- ...... 10,145 22~1416

0

860.5 3.5 c pending Sep ember '084 6,215

15.897

47:449 ,6

890

32b.211

.9

15,299
98

Table 18-Worleflow in the Internal Revenue Service and the Courts, fiscal years 1977 and 1978

Ritt-is

1977 1973

Tax returvis flied

'

total

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

133 522 404 136 719 328

Individual Ineome tax _

------------------------------------------------------ *......

85:607~715 87:396:093

Declaration of estireiiifi"6i.............. ................................. 8,088 48D 8 102 814

------------------------------------------- .... 1,662:701 1:732:207

=iallp L~114 885 1 205 035

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

if

corporation ';i~;aiiii".""'" ............... ............ ........... - ............ I........ 2~

"

7 947 2:349:142

Estate tax.. 316 152

Gift tax.... 195: 194

Employment uses ............ 25,20821,890126 25,111 IGD 114

Exempt Ogiseminin ............... ................................................ ... 554,166

1

516:525

Ere 'toy. Plan, .......................... ...... ........ 1,286 957 243 137

ATF' Reta,na .............. ........ 563:924 551:572

.I, ..a, .................... --------- ..... ... 909,809 907 758

Supplemental Document....... _.......................... ................. ... 5,876,725 827:335

Income, Estate and Gift

Number o~ returns examined by Examination Division. ~ -------------------

Returns w th adjustment? proposed by Examination Dunance..............

DI. rated of b~' xremeatni, 0,,,,,cn:

Ifirred,,

"'

lifire

'

'r ... D1Ix11.11.1'd::::::::: ---_-------------------------

is it

App.

.........................11...

Other ............. ................................ ............................

Civil Tax Cases

1: 2 125 HD 2 090 129

611:579 1:526:553

1,562 573 1 477 312

33:444 34:626

15,562 14,615

Courts of Orl p.Rjt~,:,1JurIsci Tax Court:

Total

U

ad toTaxCourt--. 1? 268

Dismissed..................

Settled by Stip,lation,-., .. - .- ~ ............................ ---------------- ......

Closed by C art ............................................................

District Courts and Court of Claims:

131:

2' 563

121

1:212

Total filed In District Courts and Court of Claims --_----------------

1' 152

1,121

settled in District Courts and Co

a"

of Claims (includes 44

'86

Doc~d.erl by,District Courts and Couit of

C Win-_ ...................... -------_---------- 451 447

"'it'Settled by Courts of Appeals decision.... ---- 137 2

Favorabl jo gover ment.... .....................

-

:::::::::

IG4 1

83

Favorable o taxpayer ..................... ::: --- ..... _ .......... 40 34

Modified— ........... --............. ................ ............... 33

Supreme Court:

Taxp yer atiflons for certiorari:

37

Granted...........

D..I.d- 341 335

G9ver

Granted .................. I I

SrdlD11I it- ----__

ad b; S~ c1sion ....... ............................._.................. 5 -6

Fraud Casits

Cases initiated by Intelligence Division. ... __ ............. ....................... ........ 8,901 9,481

Disposed

of by

let elliffence Division:

Ple-fi.ri recommended ..... 408 3: 4191

prosecution not

4

59

5 96

Disposed of Py Office of Chief Couns'edl

;;*sKut oon,not warranted, mc u on, cases declined by the Department of Justice..... ............ 486 597

Ouncutl ....... ....... .................. ......... .......... ............. 2, 161 2, 153

7 483

99

Table 19.-Amounts of revenue involved at each level of the tax system fiscal years 1977 and 1978

(Million dollars)

It.. 1917 1978

Internal revenue collections total

individual income taxes, tot~'l ---------------------------------- ----------------------------

Withholding.................. ........ ........... ------ ........ ........

Oth..................

Corporation !ncome taxes.. .............. ......... .............. ...... ...... .......

Envol

, '1.n.d.1,,x

'n'

I

Excise taxes ---------- ...................*

T,v and pri ddgl:~nn neg hly, Tittilmment in Tax Court. .

............. .............. Tax

and pen. In a

Court decisions:

Diammineci

an ceenis------------------------------------------------------------- 7 --------I.......... 6 .... I ------

Tax financerisities determined in ca as decid ., on

is it by " in it

and Courts .1 Appeals.

Amount in isputs but not refunded to taxpa;,r, as tion refund suits. ............

Fraud Ce...

d ..

Dil"'i"c" "

of in intIllifilric. di,ations:

P osillid.D71sip.'em."fled

I"

Prosecution not warranted ----------

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

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

359,139

186,755

144, 672

42,083

60,050

7,425

11, 07'

7,

a

33

127

13

28

7

41

4110

399 776

213:058

165,254

47, 804

1

311

5

38,

17:6112 IS

65

154

13

27

20

50

6873
Table 20-Requests for tax rulings and technical advice (closings) 1978

Taxpayers'

Subject Total Request.

R.4.1d

uests

Total-------------------------------- ----------------------------------------- 10,708

khard.1 -------------------- ------------- ----------------------- 2,272 N2 ..12

Exempt Organizations

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

I ---------- 3 125 2,861

Employees Plans..-------------------- ---------- ------- ------ ----------- 5:311 4,681

$14

20

264

630

Table 20A.-Determination letters Issued on ERISA employee benefit plans, fiscal year 1978

Letters Issued

Total De.

Stock Money profit

firear. Bond Fred Con. Defin

Purchase Sharing TRASOP Purchase tribution Benefit Total

A) Initial qualifications:

1) Qualifi,id.. ................. 9 1, 09~: 71 185" 314 853 sting Employees. 1, 117, N92 1811,111 21 11 194 1 41 113

Pa"Icip

4, 93 36 29

6 2, 580~ 3 ~66 1,52 8,462 8' 4, 11857: 8236 2) Net Qualified ----- ........... 1 10 13

1

25 3 23 Amendments:

1) V11fed-f 1, -------------------- 594 31,207 62,686 62 371 94,920 37,983 132.90 C 2) of Tal xTd....... - 3 20 23 a 31

lifurcrin

a 10

1) 2) 9utafified 30 3, 11512 7,386 3 6 10,577 4,496 15, DG - 22 33 10 43

Table 20B.-Number of returns examined by type of exempt organization

--------- Private Foundation ---------------- ------------------------- ------------- - ------

flan-Extunat Chantrible Trust -------------------------------- ------ .................

50 All Oller, ------------------------------------- ------ -----------------------------

Civic Leagues, Social Welfare- . --------------- -------------------- ------------------

50 c 5)....................... Labor Agriculture,

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

So

c

a

lu,InI, L ... ual_ ------------------

Social and fief-tional Club ------------------------

50 ------------------- Al

I

Other, ---- - ------------ ------------ ---- - ----------------------------------

521

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

Farmer's Cooperative....... _------------------------------------------------------

Total

__.....................

I ------------

FY 1978

2, 767

84

1: 802

910

343

I~ 511

2,910

709

17.238

Table 20C.-Number of active entities on exempt organizations master file as of 9-30-78 and

9-30-77 (individual and group)

IRC Section (501(c))

(1) Corporations Organized Under Act of Contra------------------ ----------------- .... --.......

(2) Titleholdi 'ir Go,p --------------------------------------- ----------------------- .... _---- _

~3) Religious, Charitable, etc.. ...............__ -------------------- ....... ............. ........

0,1 Social Welfare

4

-_ ------ ---------- ------- ............. - ........ 1.

5

Labor, Agriculture Organiatior,i-------- ------------------ ........ I ---------

Business Latues- --.. ------ ------ ------------- ------ ----------- -----------

(7

(a) Soci ~,and ecreation Club .. ------------------- ------ -------- - .......

Fiat: Bafleficiary Societies. --------- - ..............

(9) Voluntary Employea's Beneficiary Societies........ ---------- .................

Fund

"' 0 "' n'

I nefic1l, larieli.......... ...... ........ --------

~111 'Tagch.Irc Rpller.en

11

12 Benevolent Life insurance

(13 C fury Companies--------------------------- ---------------------------- ............ -

(14)

C

radial

Often

I ------- ------------------------- ........................................

(15) Mutual Insurance Coungiini.l... ..... ........ 1---- ---I ...... - .... ........ ------------

16) Corp. to Finance Crop peration--------- -------------------- --------- ........ -....

(17) Supplemental Unemployment Benefit Trusts ..... -------------- ............

e:rarrx~do,"

E

mploy

Fir ad

Per"'i n

-t.

(19

)

War Vat nizatppirl'..

(20) 50 LI&A Service Organizations ------------- ---------------------------------------- ......

(it) religious and APDStOliC Organizations. ----------- ........... -

52,

Fruml

.' Cruiturativers, ------------------ .................

Total ------------------- ----------------------------------------------

9-311-77 9-30-78

1,072 - 25

5 223 5 272

276:455 293:947

129,496

125

317

87,656 4 87.531

54,100 45,325

0,031 49,9G4

14

1,138 140,963

6,486 6.827

12,410 12,199

13

it

4...1 4,863

5,2G4

5. D7 lk 111, 18

4

1,450 1,408

831 821

00

0,

4

14,305 21,2334

-

64

5 7

3,794 3,606

789,666 81D,048

I Figure is estimate at lhis time. The IiIW77 fitu,re of 1,072 is erroneous based on organizations' improper classification based an their response

to a questionnaire which was used to initially cata lish the inuuter file.

Table 20D.-Exempt organizations disposal of applications during fiscal year 1978

Applications for Determination

[PC Section 501(c) Approved Denied Other I Total

1) Corporations Organized Under Act of Congress.. .-_.......

2 Titleholdin, Core :: :::: :::::::: :: :: : ------------ I ,1 19 1 112 3. '0

(3~ Ral

Chgih.,,,,

..

I, xm' 7,278 33. 55

('

Z.1~110wull,Iin re-. .. - ~ - ~ . ------- 's:t6ii

1

13 1,002 3, 781

(5

"""

A,6111tull 011-...... .............

.................... 558 27 101 696

Business

ferrilluirs

867 111 1:3

(71 Social and 682 21,10

.29

(S 671

) Irrit-W lielficiary Societies..................--...... 7

N

t

Imumary, Inepl. 1,,gl ocletma ... ................. 51918 2 57 6511,

1

1

I 11 1

r) Opurn'stic

Efate

'no

11tr ..................... ... ...... : ...... 32 1 56 89

(12R ( Tucheran Retirement Fund. - ~ . - .... --- ::::: ............. - - - -

Benevole I Life I nauraime Assn- . ............. 144 14 102 260

(D~ 1-leUr redit 279 6 39 324

'niong Campania! .... ------------------------------------ ............ I ..... I ...... ..... - -------- .... 30 - 1 31

Corp. is C,

N DIP ... ......... - - -

1,Iu,I I" ,an

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

13 1 3 17

Supplemental Une mial ant Benefit Trusts. ..........._-_. .......... 59 3 62

Employee Funded Pension n Trust... ............. ................

(19) War Veterans' Org ..... ........................... .................. 26 Ii3

(20) Legal Service Ort., ..................... ---------

1

8

501(d) Atratrific and e4geus O,g... -------------------

%

Can, Service 0, a

Ed.U.C.a!imgI Org- .......

..................... 84

G

31fi 126

National Office Ruling, or Detain nation Letters. - . .. ~ --- -.. ..... ------- 2,007 340 514 2,961

Los, TI-firs to

District

Offi, I .................................. -- ...... - - -256 -256

Grand Total..... ..................... --------------- -.. 35,214 2,192 10,354 47,76D

I Applications withdrawn by taxpayer, incomplete applications. etc.
102

Table 21.-Tax withheld from payments to foreign persons of treaty and nontrearty countriescalendar year 1976 (in thousands of dollars)

Country

Tax from filtuaturrid

Tax to reign

Iff

---Up.

.Ithh.W governments documents

Total filed by

Total

"

=j; ithh.1d,,Dr withholding

Income withheld agents agents agents

Total ___.....................................

Treat'Austral countries, _ ................

.. ....................... .......... __ .........

AuxtJa .........................

B,Igiu... ..... ...............

Fo "met Belgian o/s Territories'.. ---

Cmi....... ......... .......

Denmark.............. ................

Finland ... ......... ............................

France I... .................... _..........

IFed I Republic of Germany ........ ...........

reece............................. .............

1c.limul........ ............ ..... ___.........

I intend ... .......... ......................

fily ......... .......

"P" ----------------------------

Netherlands ...

N,12hadards Antilles

Zealand 1. ............. .........

Nor. P. _..... ........... .........

palskilts ..... .................

ffisra.Wi ad .... ..........

South'Af u:....... ....... .......

S-d

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

SMus"I"d Trinidad USSR.......... anli ..............

United 111dom I ------ _ ------

'a'. at Territorial'.. ......................Mmtrai Of as................. I........... I ...........

M 359 482 024 412 7

8

69,256 652,038

1 076:350 43D:382 361:1266 69,2 531 238

10 111 2 045 2 045

56

7:08

6:469 '657 '657

5

so

111

'388

10

, 678

8,430

2,248 14:78

55 4 4 - 105

71 1:

5'

135,427 123.2577 -11,850 283

"a

15

41,

253

4'

4 2:218

48, 27 27 - 351

267,302 26,698 26,39" 307 15,383

12

"

9,619 9,619 -53,638

3~'16 113 3,

91 61827

1

37

15,348 681 681 114:054

'

:2" 2,233 2,233

87 467 114 96,

1'4

4, 111

":

881

4 ":4 4 2 2 4,991

350 67'79 32,971 32,476 495 1 791

111,

4"

1 9 521 IS 5,517 3 1:338

53 3 30 475

626 4 405 4065 1:

13 35 35

285 27 27

1224

15

55 a

a

30

12,244

602

602 2:033

9,382 1 651 51 5 206

568

0

29,

628,1256 126: 73 62 53,506

'

1 57

is 2

91

104 28 28

498. 110

0]"

56,

$16 56,432 384 62 224

3,277 436 436

1

:

319,999 51,642 tl,642

I

20.099DO5

At a Inclad dependencies covered by tax ties ies.

Iotinit,. forner

hurrItares

which have become independent Countries.

I On

ly

anon total amount of tax withheld is available; breakdown between tax withheld by domestic withholding agents and tax from foreign govern.

is or

I

thholding agents is estimated from post experience.

103

Table 22.-Internal revenue collections, costs, employees, and U.S. population, 1949 through 1978

Fiscal year

A-son Positions r,.11..d

Operating Cost of population Tax par National

cost Collections

col

actl =. seat is Total Office Field

SIM

(2) (3) (4) (5) (6) (7) (s)

1949 209 205 715 40 463 125 019 1.11 41.111 271.17 12.111 1.514 11.111 I

...

B 59 15 271 25 84 5 551 51, 950- 230:408:200 38~ 957; 131:758 2. 5. 5, 4.303 248

I 1111

1

Z2411: 11138 11 41,116:536101 1. 11 174:171 125:71 11 111 1:92511 121:'117

7

1

12:811

00

"S 0

42 15 553 '12

56

3 3 3 5

IS it"

4'

": 5 38 160, 184 435. 62 53' 09

1

953 _ .............. 268,590

06

195 7 0. ': 1 4' '29

St. US 35, 389

38 163,026 428. 51~41'131 2 7.1 18:7

1

955 2718,' 834, "' 27 196.' 211 692,' 0"001 SO. 42 165.931 399.8509 50.890 2,675 48,21054

I f: 1971:00. 1 11 957 4 7,1:1711 1 11 1: 3480 7,:1 111 4,11 1,112 215.3 Is 091 1956

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

- 111, 11a: 111

30

9.4 4 6:11

50,814

2

132

4'~

1.3 1958::::": 3357:98,789 79,979,476,484 0.42 174.882 457.3163 51' 366

2~

109 al

7

1

7

1191" 3611 411:3221 7.,797 9,72.80S 0.4

4

1811,617310 44

-

163 11:014271

,

111 41 11

960

3 35 59 9 1 9 1 2:91

3, 1, 774: 2,923 .40 0. 5078. a

'37

211 14: "1: R31,1: 21411 1.41, 18161:5111 131]:11 13: 421 3: 400411 131 .6 112

~45101: 9 40 1 1 38 1 1, 5 .1 3

1

0

96 0. 1

5

80 1963............. --- 500,904,314 2 105,925,3957: 2115 81 00:4 7 181 242 111:14 I'l 1~1 3:6817 1,154 1164:::::: .9169 , 131 112

49 191:889 03 61:7

,260,25 585 1 3 39

57,220 1965 597,387,471 114, 434, 633, 721 0.52 194,303 588.95 62,098 3,881 58,217

1966- 124 11: 2121 128,879,961,342

IS

1 &S7: '. 16 5

11'

11: 11

2 746 6

052

' 8 110' 21

121

98 1 ':68 61:94 62.'

N 41~1'74:. 26552 3:9094 11968 ...... 699,190,304 M 36 37:13

0."

6

" IS 7'

48 67,574 3 67 63,607

969 ...... 7116. 1 18

-

1

0

88 11511,471 7 202:'677 12319 66,064 3.96 62,202

9'

1951,618

1970__ ..... 0 45 204,878 955.31 2 9, 62

95: 11 0

722, 6,497 0. 68,683 4,103 64,590

1171 ------_--------- 981, 065, 297 191,647 1311 131 1: 1.1 2,0,7:053 925.63 68.172 4: 133148 61 11,4 1972

4" "' '5:7

6:87. 1 2

94 D04 68

4 6.:4

1973.::: 1:162 0: 91

"

5 237:787,201,018 0.49 210,4106 1:130:1813 74:154790

4: 3 65

2719

1975 112. '1: 11 772 .. ":6 1974:::::: '14 268. 952 25 663 0,49 211,901 1.269.24 78,921 4 10 74 11

581, 7 486 293,822:7235,' 0.54 213,559 1,375.94 82,339 4,531 77, all$

"71:::: 7: 5381~1: "1 12: 11,1: 4711: 1220 1. 1 1 '142

"

1464 4:~7~341 181:71412

0. 1

1.11.14 :7 3 1 1

197

7

'796

0 73, 35, 1, 16 7, 11

29 64 .91 83

1978 ................. -1,962,129,287 399,776,389,352 0.49 219,

0

33 I~ 826. 61 85,329 4,919 80,41

1

7 0

-This 15 to ap,esents actual IRS opealin costs for FY 1975, 1976, 5 explusive of reimbursements bumved from other efficacies to, .-ic., p

meraloIrsmanads. n1alt !Is the operatinj cost figures ~or rical year prior to 197 may in some cases include reim; ansaments, those amounts are sufficiently

"r - Ec-a-mic SloblltJh., pr`,',fgrp - a'.. in

a

-acos"ponitLos 1.1hid9;d in 1972, 1973, and 1974.

Federal Energy Pro a 11, 1 tons included in 1

4.

led by maonayg.lla pop's

1972 djax

tj .. in

.(felt

I

he ATAF tf.nf,.,,-I.ly 1973. AT&F irl.didl ~n years 1948-71. [9 T

Eleven average positions transferred to office of the Secretary in I wetity average pini purs I ryfivad to office of the Secretary 1. 1963.
104 105

Table 23-0bligations incurred by IRS by appropriation and activity

(in thousands of dollars)

Appropriation by Activity

Personnel Conape as.

Total tion and Benefit. Other

1977 1978 1977 1978 1977 1973

Tots? obligations, appropriations and reimbursubt-, -----

1 010 4451 974 8561 43D 3131 545 735 380,3132 4229,1211

Obligations against appropriated furi............. .....

1: 790: 58H 1:962: 129 1:412:276 l,535:528

3

78. 12

4

6,60

Sabrina& E.Pain... :

Total................ __...... ---------------- 49,365 53,653 40,822 44,176 9,543 9,477

Executive Direction__ ...... 21,31

'

201: 23

B

17

'443

:21 3:

Internal AuditA Security ...._2 Ol3 91 23:1111 2,9 12M9 08, 5

Aczar,Vs, CollectionA Taxpayer Service:

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

To.

............. ........ -------

.:11 is 922,407 619,760 664,750 73D, 755 257,657

Data Pr.c

112 ...ing Operation ........ ......................440,664 497, 861 333,265 37.1: 6133 111,734159 126.128

12

2

IRS

Stalistical Reporting..

-------- 24

153

Col action. ------_ ....... __ 131 42: a I ~ :3E 201:'113 212,934 305 43 49

Taxpayer Service................. ------------- 141,740 154,296 ' 66,434 69,722 75,3416 84, 574

Camp

I

mot.:

Total....__ ............. .......................... 89l,7DB 986,069 752,694 926,6D2 139,D14 159,457

Audit ofTa Return.. ... __............ 32,050 695 071 530,790 578,919 101,260 116, 1252

as

Plan .............._ -----------

3

5 81 39: 171517 33,943 4,705 5.3

8

Tax laird It Special Investigations ............... ......... 106,3362 120,247017 ....575

Exempt 0,ganuzatuar ............................. 20,433 23,4113 9:' I'7 317, 593 986 2, 4. 3 42 3 13 4:719167 2912

3'

173 1~1 ~5, 134 4:

'

5 6:1

6

':3 71)

S, 18

Technical Rulings

A Services.....9 21:2

41~

4742492

R Legal. S,,xca ......... ......... 19&42

1 27.I

0

421:7411 181:111

2

.1 so 4,60Z 6,216

mb rsable obligations, Total... 857 U7 10,207 11 112 2,520 I Data Processing Operations Total Includes Management Activity 2300 for National Office.

Table 24.-Staff years authorized and realized I

Appropriation

Authorized Realized Percentage Realized

1977 1978 1977 1978 1977 1978

Salaries and Uparses.. --------9......I ...................

I

"

42,07

Accounts, Collection& Taxpayern ': (1 4,7115

' 1: 0'6

44:

1`721' 111: TS 44 .3

3

22: '2 10

Compliance. ........ ---------------- 38,346 38,739 37,226 8,455 97.1 99.266

------------ 84

34D 94,928

Increase, Total ........... +599 I Does net include staff years devoted to reimbursable prejaxts.

93,743 95,329

+401

99.3 100.472

Table 2S.-Costs incurred by the Internal Revenue Semice-riscal year 1978 (in thousands of dollars)

Internal revenue office, district or region

Personnel

Total "'Msation Travel "u'p' an Other

(1) (2) (3)

() (5)

A. National Office and regional totals (including district cirector's offices and servic;,.nt ... )

National ON

........

1 974 8561 545 735 55.407 10.924 362,790

:: '393: 703 '120: 718 3,7013 110 211: 8111 Noith-Atlaritic..

.......... ------------------

76,

211:2

1: 322 16 12

.77.5.647 4:631 15]:2

2

2ga

Mid-Atfurfic ................

1 17 7171 84309

91:433 7: 871

1

Can 05 181, 149 78 34

1964,157

1747,

494

5

636 625 413

1

7

0,270 N:235

Western. .... 181,925 161.~325 ':3 .19 1113 1., 42.

Regional

2 831 18,99D8

10:816'2' '26: '21'0' '1~"l 276

Regional inspection., .......

27

82

0

U

ice offiCnheirralbonal 23:411 21 7511

2 24 74 677 Operations. ,12 1.6 9:23 1:1

Nations omfu at enter--------_----

8,0

24

1,

................ 48

6

!i,33S IRS Data Can er. . . ........ _............. 24 ............. ... 3928 2""' 0,456 113 2() 3, '03

B. Regional commissioner's offices (excluding district director's offices a

"it le.t!r,!

Nort

h.affifint," .. . ___........................

1:,111 Mi c........14

fed-Athati --- --- ....... ................

61

,,ulheast. . ....

9: CUP

So.thavett 10,

Western ......

....... 598

........ ........ ... 15,337

119: 117 if 212 74 945 7 231 220 1 094

1: 1491

3

8 59 14 26 1: 105

235 45 748

1.8,735 "1 311 13 1,221

38

51

473

12,520 560 424 1.933

C

;fl,,.~Iian

ad -"

undistributed

N .mi

-------------------------------------------------------- Mid-Atlindic 980 925

- 56

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

1,292

1

Southeast

------------------------------------------------------------ Central. 2.222 2, !1, 7- 57

------------------------------------------------------------*

1: S183~1- 40 Mid-at

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

1: 67 S..th-t 2: 180

671 2:110 117'1

D. D13trlct directoes offices and service ..far,: North -At antic t

Albarry-_ ...............

Aujush- 8:42~21 7,31() 259 98 553 ............... 0 4

173 11 198 Boston ....... ....... ............ ......... ...... 91' 11 ........ 30 279 2.:'12 ,7 No 440 1 4 30J55 406 B

iizilc.,S 84 SS14' 0 ' 7

"1

411 47

u Hart':.,d.: :2

4 2:31 131 5,466 14.366 357 139 604 Manhattan_ 61,9476 59,230 661 3DO I

Portsmouth...

Providence_ ... ------------- ........... .......

4,02 3,707 113 24 "fSB

Narth-Ati.rific 1,273118 1,211 116 99 299 RaRion Centralized r ............. ........... - 230 - I

Andover Service Center.............................. 31:4111 11.780 145 16151

4 38

M

Brookhaven Service Center.................

---

_ 41

ld-Atiantle:

_ ........ 18 36,851 102

4:

DO

ealfirroje........................... ............. ................ 25.380 23.951 434 125 870

33:1

6 195

1

4 37:2

0

14

it

Phil.d.

3

Pittsburgh .............. ........ .....................

.........__ ......... 32 34

3 221 U11 22 11:3 4 360 11

,,d -------------------------------- I, , 1 7'

ne

I

0;

I'l'i'l

7 625 2107 $918 in !'7:'U1' 4

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

3,822 3,G Mid-AtI.atic For. Dhtflbutwe Cc ...... .....4016 68

6 133 Tat r_ ..... .. ____....... 464 1 1 6

56 Mid-ltl,rl~., r _ ... ............... ...... 137 - 136 - I

Pidbairr",c .a,

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

_

Southeasst: ---- 43,183 38,142 102 175 4.764

--- : ... ...........

2 14' 110:1~4 ' I'M Iff 1~11 1,211 an .3

Ccl. his ... -----------------

:C

313

M 466

S

IS

7: ~2

3" Gesnab.........

144 363

Jackson .........

___

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

I7: 1'82 13 21 100

2

1

76 454 343 '341 I,lk,,nvill!::-:: 20 102 its._ 1:503 37,945 1,402 270 2,6374 Nashv! 4 17

Southeast Region-Centralized Tt.. .....:: ---------------------------

2,2~2S 12.- 583 45 76 -

188

-

-

Atlanta Service Center--.. ------ 4:

"

30,

'

7,1 MemphisService Center..... ....... .......... 701 19351 4:7131 ::Ill

486 30.12

9

3

72
106

Table 2S.-Costs incurred by the Internal Revenue Service-Continued

(in thousands of dollars)

Internal revenue office, district, or region

Personnel

Total C..P... Travel Equipment Other

sation

(1) (2) (3) (4) (5)

Central:

Cincinnati ......... ......... ....... ....... ............... : 18,559 17 022 498 121 917

Cleveland... ..... .............................. --------- 25,619 23~ 637 651 70 1,261

Dwelt.......... ........................I...... ...........

3

8111 1116:1 21 1,111 11 112

Irdlanalsoli,--- ........ ............7

1 617 asa

L.

5 34

Paulsville..................... 11 48001 10,357- 413 78 52 k b.,g ........Ir ----------::: ............................... e,172 5,522 2

C. 69 27 353

rtlat Rglar-p.ntn tred Training. ----- _. ....... ---_----------- ISO

-

I

so

-

I

Cl

ruinnuti efvjce Center. ......... ................... 36,899 32,756 134 144 3,965

laid

Abeldium .at: .............. ..... 211 11 132

'3' 2:M

I'5S.

a53:10I 41 779

Do .......... ....... 11':~731 1:711 443 46 13

Falgo- . . .. ......... ....... .........

102

573 164

1

7.

Mi aukee-__... ............. 15 032 13 94D 468 32 592 Ornah ............ ...... ............ 7:337 6:513 351 22 Si. to -

.................. -------

242

2" 4'

931'

..........

1

61

I . P.T_.........__ ............87 1:683 644 b3 796

n'

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

1

1,1455 10.416 491 22 526

M'di I'lit'll 47

- 147

SoKaneas City Service Center. ........ --------------------------- 39,970 35,360 95 269- 4.241~ Authwest:

--- 4,166 4,505 215 32 215

Austin.. 32 383 29 338 1,2422 325 1,297

Cheyenne-....... .... ...... 2:572 2:244 04 20

1

03

D

alles

131 111 1, 111 135 1, 8194'

Sit

1 1,: 0

Derye~::::::::: ------------------------------- .... ....... 13 '68 794

LitIts Rock ...................... ------

7if 711is 13; 11 62 31 31

4

New Orleans ......................_ ........ ......

1 :4 "a 47 63 65541

Oklahoma City..._. ..... .......... 1'3~ 17 12,071 562 569

Wichit S.u ------ ..........._ .... ........... 967 9,125 415 '37 390

jhwest Ievor-Centrallited Training .... ......................

'04

- 203-

I

WAtil In U111c. Carl .................... ...... ------- 39,479 34,727 95 109 4, US

.to.: A chorage-.. .... ...............

4

3 11 283

a 257

Sales--------- .................

4 427

3

n ~297~ 880 218

3 197

-------------------__------

3 :3

4:UP-1

5 211

floral .............._...... ...... 93

1IS

Los

6 210

Aqgeles-... ...._1.......I .... ::

17

111 629: 121 1,1

50

2,659

Phoenix----------------------

10~073

It 3519

7 447

P. tI.rd..........................4 '23

Ron,--. ............. ":1 1"'93 ':3 1 '32 223 141 SO323

Salt le, 112 4.111 1521 16

San Free fjty~ ............. ':

1

36

ncisco, 4314 40,109 1,262 Sand----- __................:::::........... ......... ------ 16,602 15,228 to' 2'1727 6

11 36

Western li.gin%iiatuallixid Training........................... ...... 340

- 334-6

Ogdenservice enter-.... _. .... .................... 10,593 35,960 155 7014 40

FresmiSCIVICeCerter. .................................. 44,077 39,237 193

a

4~S(17

107

Table 26.-Personnel Summary-Fiscal year 1978

Location and type

Average positions Number employ.. at

...Used les. of year

1977 1978 1977 1973

Service total ................................. .............. 95,727 86 2SII 84 414 81,505 TP rmanent-.,..-. --- ........ ...... _. 69,848 71:444 70:598 70,942

:'i------------ ..........

- ........ ...... ...... 15,879 14,814 13,816 10,663

National Real ..I Office'O.zzz.::: _ - 5,025 4,973 4,662 4,592

-------------: :7

1

7 76,913

Data Pr11, air, Operation,.. Caill.U. a ......... ..... ...... 2. 17

- ":I 17 11 2. 13 24 201

n. 10,881 10,412 10.709 10 2 075 5:7'8'49 '

14

':

64

1

...........4 80

4

6

':4.8

4

Is

4,

7

Tax

pa

yer Servlze_ ....... ... 3,922 4,313 4,082 S.7.1

Taxpayer SerVice Specialists ------

----

589 624

- 651

Taxpayer Se ryice Represent lives-.-. ..... 081 1,090 1,097

.,her.

"A"G, 2': 22 984

Audit of Tax ..... 25,810 76.2" 6~ 21':9" 427 I A 3 27 14,1183 13.959

c.A dit.s.

..

4

US

.lh,r_. ......... :1

' I'M 4,686 4,725

................... ....... ........... 7,63D 7:

7

11

1:12' 7:74

3

Employee I'l.r./Esenilt Organ zations...................1 1,95,

1

.22

1

1:178 U7

EP/E

0T

rich

n

lcal ..........I__......................

-

S5

1,

1

3

Oth

a

----------------------------- ....

-............ 523 593 564 INS

Tax

"or

Confiner- and Appeals--------------_-----------_

""'

1,113

1'196

1,207

A

pp".

...... ..

..

P . ......

I ................I ...... 566

565

572

Auditors ....................

-....... ......... :::::: ......... 116 116

118

1.3

Oth........... ......... --------------------- ...... : ............... 499 512 506 536

Tax rrgd,.mr! Special Investligations... .......... .............. 3:575 2 3,911 3,864 91

In,I A!,.n.l-:: ----

2

7'

other 1~7 79

2 764 . .... 1,02D112

H77 1,150

AthrinisIrClion Management ....... .... ...... 3,131

1

374 3,253 312n

al*n:, 946 1:036 992 1,103 '*'Im.

Res 85

1

867 852

9

16

Note: Reimbursements ... included in above figures. I Includes terminal leave for average positions realized for entire Service. 2 Includes Office of International Opend ons, National Computer Center and the Data Center.

Table 27.-Quantity and cost statistics for printing

Class of Work

1. Tax Packages (1978 P

k,k

" a,A&

a

pack ':I2. in 1310: ScV.d'M1!"" ""Illu,"I! 1. 'a,"d 87

Package3 (Form 104D,

~F

SchadulasA A. 8, C6 D, E, RkF, SE, and Instructions-76

P'ck&Ea4(Form 1040, Schedules

A& B,, D, E,,F SE, Forms 3468, 4136, 4797, athultrans-92 ggll) ----- _..... -1 ..................... ........ ....... ......

Package 104W orm 1040A and Instructions-32 pages)... ..... ..... I—— ...........

Pack,s. 1065 ~,o;,. F. 110165 2~Sch..K -1, Fromm 4797& istruct7ions-52 palls).............

Package 1120 Sch D, Fo IIZOW, 8, 97, 4874,7 04, and Instructions

40 frajris)~

-

2. Employment fee---------------------------------------------------------------------- Package,:

Pub. 393 (197B) ....................... .................. ...........

Total 3. cost of Tax Return, 8. Instructions far Mer Mailmir to Taxpayers_ ... ...... Other Tax Ret,rns, Instructions, Public Use ro'ni & Pamphlets............................ 4. Ad.imethatives orms and Pamphlets....... 5. .........

Field Printing.................._...........................

Quantity (11000 items) Cast DAN't)

Other

T.:Pr feting

sick is FY-78 FY-78

21 71

1 114

8,332

857 1,224

2, 64Z 547

38 182

1:

a

50 2,111 217

2,180

- 198

5,909 111 - 1

171

3,,721:,161 23:

1

-

"4

9,615

454,727 3,409

Grand Total.--. ............ ___...... ................. ..... ___...... 94,608 4,863,901 45,259
11

108 Chronological List 109 l Commissioners

of Internal

Revenue

1862-1977

and Acting

Commissioners

during

transitory

periods.

George S. Boutwell

Massachusetts

July 17, 1862/Mar. 4, 1863

Joseph J. Lewis

Pennsylvania

Mar. 18, 1863/June 30, 1865

William Orton

New York

July 1, 1865/Oct. 31, 1865

Edward A. Rollins

New Hampshire

Nov. 1, 1865/Mar. 10, 1869

Columbus Delano

Ohio

Mar. 11, 1869/Oct, 31, 1870

Alfred Pleasonton

New York

Jan. 3, 1871/Aug, 8, 1871

John W. Douglass

Pennsylvania

Aug. 9, 1871/May 14, 1875

Daniel D. Pratt

Indiana

May 15, 1875/July 31,1876

Green B. Raum

Illinois

Aug. 2, 1876/Apr. 30, 1883

Walter Evans

Kentucky

May 21, 1883/Mar. 19, 1885

Joseph S. Miller

West Virginia

March 20, 1885/Mar. 20, 1889

John W. Mason

West Virginia

Mar. 21, 1889/Apr. 18, 1893

Joseph S. Miller

West Virginia

Apr. 19, 1893/Nov. 26, 1896

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

Mar. 1, 1899/Nov. 27, 1900

John W. Yerkes

Kentucky

Dec. 20. 1900/Apr. 30, 1907

John G. Capers

South Carolina

June 5, 1907/Aug. 31, 1909

Royal E. Cabell

Virginia

Sept. 1, 1909/Apr. 27, 1913

William H. Osborn

North Carolina

Apr 28, 1913/Sept. 25, 1917

Daniel C. Roper

South Carolina

Sept. 26, 1917/Mar. 31, 1920

William M. Williams

Alabama

Apr. 1, 1920/Apr. 11. 1921

David H. Blair

North Carolina

May 27, 1921/May 31, 1929

Robert H. Lucas

Kentucky

June 1, 1929/Aug. 15, 1930

David Burnet

Ohio

Aug. 20, 1930/May 15, 1933

Guy T. Helevering

Kansas

June 6, 1933/Oct. 8, 1943

Robert E. Hannegan

Missouri

Oct :9, 1943/Jan. 22, 1944

Joseph D. Nunan, Jr.

New York

Mar. 1, 1944/June 30, 1947

George J. Schoeneman

Rhode Island

July 1, 1947/July 31, 1951

John B. Dunlap

Texas

Aug, 1, 1951/Nov. 18, 1952

T. Coleman Andrews

Virginia

Feb. 4, 1953/Oct. 31, 1955

Russell C. Harrington

Rhode Island

Dec. 5, 1955/Sept. 30,1958

Dana Latham

California

Nov. 5, 1958/Jan. 20, 1961

Mortimer M. Caplin

Virginia

Feb 7, 1961/July 10, 1964

Sheldon S. Cohen

Maryland

Jan. 25. 1965/Jan. 20, 1969

Randolph W. Thrower

Georgia

Apr. 1, 1969/June 22, 1971

Johnnie M. Walters

South Carolina

Aug. 6, 1971/Apr. 30, 1973

Donald C. Alexander

Ohio

May 25. 1973/Feb. 26, 1977

Jerome Kurtz

Pennsylvania

May 5, 1977

Internal Revenue C-nnss-e,s y,ho served in

Cabinet positions

tor, S so S. Boutarell Danielr

C'

sty Rio

of the Treasury Socretar

'

of rommerce

1869,1873 1933-1939

Columbus Delano Robert E. Hannegan

Secretary of the interior Postmaster General 1

870-1875 1945-1947

Office of Commissioner of Internal Revenue

Created by Act of Congress, July 1, 18132

In addition, the following were Acting

Commissioners during periods of time when

there was no Commissioner holding the

office:

Joseph J. Lewis of Pennsylvania

from Mar.5 to Mar. 17, 1863

John W. Douglas of Pennsylvania

from Nov. 1, 1870 to Jan. 2, 1871

Henry C. Rogers of Pennsylvania

from May I to May 10, 1883, and from

MayI to June 4, 1907

John J. Knox of Minnesota

from MayI I to May 20, 1883

Robert Williams, Jr. of Ohio

from Nov. 28 to Dec, 19, 1900

Millard F. West of Kentucky

from Apr. 12 to May 26, 1921

H. F. Mires 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

Oct. 1 to Nov. 4, 1958

Charles 1. Fox of Utah

from Jan, 21 to Feb. 6, 1961

Bertrand M. Harding of Texas

from July 11,1 964 to Jan, 24, 1965

William H. Smith of Virginia

from Jan. 21 to Mar. 31, 1969

Harold T. Swartz of Indiana

from June 23 to Aug. 5, 1971

Raymond F. Hairless of California

from May I to May 25, 1973

William E. Williams of Illinois

from Feb, 27 to May 4, 1977.
110 Principal Officers of the

Internal Revenue Service

as of September 30,1978

National Office Commissioner

Jerome Kurtz

Deputy Commissioner

William E. Williams

Assistant to the Commissioner

Marvin Katz

Lauralee Matthews

David F. P. O'Connor

Assistant to the Commissioner

(Public Affairs)

A. James Golato

Assistant to the Deputy Commissioner

Alvin H. Kolak

Taxpayer Service and

Returns Processing

Assistant Commissioner

James 1. Owens

Deputy Assistant Commissioner

Donald J. Porter

Division Directors:

Program Planning and Review

Suellen P. Hamby

Returns Processing& Accounting

Russell E. Dyke

Taxpayer Service

Stanley Goldberg

Disclosure Operations

Howard T. Martin

Tax Administration Advisory Services

Gordon C. Hill, Jr.

Resources Management

Assistant Commissioner

Joseph T. Davis

DeputyAssistant Commissioner

Alan A. Beck

Division Directors:

Facilities Management

Leo C. Inglesby

Fiscal Management

Joseph F. Kump

Personnel

Anthony W. D'Amato

Training and Development

Orion L. Birdsall

Security Standards and Evaluation

Dominick J. Lantonio

National Office Resources Management

Vacant

Equal Employment Opportunity Officer

Barbara Thompson

Compliance

Assistant Commissioner

S. B. Wolfe

Deputy Assistant Commissioner

Donald E. Bergherm

Division Directors:

Appellate

Roydell S. Rosteld

Examination

John L. Wedick,

Criminal Investigation

Thomas J. Clancy

Office of International Operations

Joseph G. McGowan

Collection

Kenneth E. Luke

Data Services

Assistant Commissioner

Patrick J. Ruttle

Division Directors:

Data Center, Detroit, MI

James E. Daly, Jr.

National Computer Center,

Martinsburg, WV

William E, Palmer

Service& Design

Daniel N. Capozzoli

Systems Analysis

Donald E. Curtis

Systems Programming

Carolyn Buttolph

II

Employee Plans/Exempt

Organizations

Assistant Commissioner

S. Allen Winborne

Deputy Assistant Commissioner

Teddy R, Kern

Division Directors:

Actuarial

Ira Cohen

Employee Plans

Fred J. Ochs

Exempt Organizations

Joseph A. Tedesco

Inspection

Assistant Commissioner

Warren A. Bates

Deputy Assistant Commissioner

Robert L. Rebein

Division Directors:

Internal Audit

Rudolph Arena

Internal Security

William E. Mulroy

Planning and Research

Assistant Commissioner

Anita F. Alpern

Deputy Assistant Commissioner

Walter E. Bergman

Division Directors:

Internal Management Documents

Jack G. Petrie

Legislative Analysis

Rondal C, Blankenship

Research and Operations Analysis

Walter E. Bergman

Statistics

Vito Natrella

ill

Technical

Assistant Commissioner

John L. Withers

Deputy Assistant Commissioner

Vacant

Division Directors:

Corporation Tax

John W. Holt

Individual Tax

Aaron Feibel

Tax Forms and Publications

Roy J. Linger

Office of Chief Counsel

Chief Counsel

Stuart E. Seigel

Deputy Chief Counsel (General)

Stephen M. Miller (Acting)

Deputy Chief Counsel (Litigation)

David R. Brennan

Deputy Chief Council (Technical)

Lester Stein

Technical Advisors to Chief Counsel

David E. Dickinson

Daniel F. Folzenlogen

Staff Assistant to Chief Counsel

James T. Fuller, Ill

Division Directors:

Administrative Services

Joseph H. Hairston

Criminal Tax

Robert W. Schafer

Disclosure Litigation

James J. Keightley

Employee Plans& Exempt Organizations

George H. Jelly

General Legal Services

George J. Shaw, Jr.

General Litigation

Harold T. Flanagan

Interpretative

Jerome D. Sebastian

Legislation and Regulations

Robert A. Bley

Tax Litigation

John H. Menzel (Acting)
112

Regional and Central Region

District Officers All Regional Officers at 550 Main Street,

Cincinnati, Ohio 45202, unlessa different

address is indicated

Regional Commissioner

Leon C. Green

Assistant Regional Commissioners:

Taxpayer Service& Returns Processing

L. Stanley Baker ,

Resources Management

Billy J. Brown

Appellate

Claude C. Rogers, Jr.

Examination

Jack P. Chivatero

Criminal Investigation

Richard C. Herman

Collection

Charles F. Jones

District Directors:

Cincinnati, Ohio 45201

Dwight L. James, Jr.

Cleveland, Ohio 44199

Everett Lowry

Detroit, Michigan 48226

Roger L. Plate

Indianapolis, Indiana 46204

James W. Caldwell

Louisville, KY 40202

Paul F. Niederecker

Parkersburg, WV26101

T. Blair Evans

Director, Cincinnati Service Center,

Covington, KY 41011

John 0. Hummel

Regional Counsel

David E. Mills

Regional Inspector

John E. McManus

Mid-Atlantic Region

All Regional Officers at2 Penn Center

Plaza, Philadelphia, PA 19102, unless

a

different address is indicated

Regional Commissioner

William D. Waters

Assistant Regional Commissioners:

Collection

Leroy C. Gay

Resources Management

Americo P. Attorri

Appellate

Reuben H. Saideman

Examination

Paul H. Thornton

Employee PlanslExemp? Organizations

JamesJ Casimir

Criminal Investigation

Robert L. Browne

Taxpayer Service& Returns* Processing

Vacant

District Directors:

Baltimore, MD 21201

Gerald G. Portney

Newark, NJ 07102

Cornelius J. Coleman

Philadelphia, PA 19108

James T, Rideoutte

Pittsburgh, PA 15222

Thomas L. Davis

Richmond, VA 23240

James P. Boyle

Wilmington, DE 19801

James E. Quinn

Director, Philadelphia Service Center,

Philadelphia, PA 19155

Norman E. Morrill

Regional Counsel

Robert L. Liken

Regional Inspector

Benjamin J. Redmond

Midwest Region

All Regional Officers at One N. Wacker

Drive, Chicago, IL 60606, unlessa

different address is indicated

Regional Commissioner

Edwin P. Trainor

Assistant Regional Commissioners:

Taxpayer Service& Returns Processing

John Ader

Resources Management

David S. Burckman

Appellate

Bernard L. Hardiek

Compliance

Leon Moore

District Directors:

Aberdeen, SD 57041

John B. Langer

Chicago, IL 60604

Charles F. Miriani

Des Moines, 1A 50309

Michael J. Murphy

Fargo, ND 58102

Gerard R. Esposito

Milwaukee, Wl 53202

Lawrence M. Phillips

Omaha, NB 68102

Mitchell E. Premis, Jr.

Springfield, IL 62704

Ira S. Loeb

St. Louis, MO 63101

Richard C. Voskuil

St..Paul, MN55101

C. Dudley Switzer

Director, Kansas City City Service Center,

Kansas City, MO 64170

Roy D. Clark

Regional Counsel

Dennis J. Fox

219 S. Dearborn St.,

Chicago, IL 60604

Regional Inspector

John J. Kelly

North-Atlantic Region

All Regional Officers at 90 Church Street,

New York, NY 10007, unlessa different

address is indicated

Regional Commissioner

Philip E. Coates

113

Assistant Regional Commissioners:

Taxpayer Service& Returns Processing

Marshall P. Cappelli

Resources Management

Harry J. Bodkin

Appellate

Richard E. Fogwell

Examination

Joseph Slipowitz

Criminal Investigation

Raymond C. Turner

Collection

Vacant

District Directors:

Albany, NY 12207

Raymond A. Spillman

Augusta, ME 04330

John J. Jennings

Boston, MA 02203

Herbert B. Mosher

Brooklyn, NY 11201

George S. Alberts

Buffalo, NY 14202

Vacant

Burlington, VT 05401

Peter L, Dillon

Hartford, CT 06115

Pete J. Medina

Manhattan, NY 10008

Charles H. Brennan

Portsmouth, NH 03801

Frank T. Murphy

Providence, Rl 02903

Charles E. Roddy

Director, Andover, Service Center,

Andover, MA 01812

M. Eddie Heironimus

Director, Brookhaven Service Center,

Holtsville, NY 11799

Thomas J, Laycock

Regional Counsel

Theodore E. Davis

26 Federal Plaza,

New York, NY 10007

Regional Inspector

John T. Gallagher
I

114

Southeast Region

All Regional Officers at 275 Peachtree

Street, N.E.., Atlanta, GA 30303, unless a different address is indicated

Regional Commissioner

Harold A. McGuffin

Assistant Regional Commissioners:

Taxpayer Service& Returns Processing

William B. Hartlage

Resources Management

Vacant

Appellate

Tully Miller

Examination

Philip J. Sullivan

Employee PlanslExempt Organizations

Billy M. Hargett

Criminal Investigation

Anthony V, Langone

Collection

Vacant

District Directors:

Atlanta, GA 30303

John W. Henderson

Birmingham, AL 35203

Dwight T. Baptist

Columbia, SC 29201

Harold Bindsef

Greensboro, NC 27401

Robert A. LeBaube

Jackson, MS 39202

William Daniel

Jacksonville, FL 32202

Charles 0. DeWitt

Nashville, TN 37203

James A. O'Hara

Director, Atlanta Service Center,

Chamblee, GA 30006

William E. Douglas

Director, Memphis Service Center,

Memphis, TN 38110

Claude A. Kyle

Regional Counsel

Jack D. Yarbrough

Regional Inspector

Dale W. Gardner

Southwest Region

All Regional Officers at 7839 Churchill Way,

Dallas, Texas 75251, unlessa different

address is indicated

Regional Commissioner

Walter T. Coppinger

Assistant Commissioners:

Taxpayer Service& Returns Processing

Joseph E. Bishop

Resources Management

Raymond Asturnian

Appellate

Douglas M. Moore

Examination

Percy P. Woodard, Jr.

Criminal Investigation

John M. Rankin, Jr.

Collection

Vacant

District Directors:

Albuquerque, NM 87101

Francis L. Browitt

Austin, TX 78701

Robert M. McKeever

Cheyenne, WY 82001

Bobby G. Hughes

Dallas, TX 75202

Alden W. McCanless

Denver, CO 80265

Gerald L. Mihlbachler

Little Rock, AR 72201

Paul D. Williams

New Orleans, LA 70230

Robert M. Cutts

Oklahoma City, OK 73102

Charles A. Parks

Wichita, KS 67202

Maurice E, Johnson

Director, Austin Service Center,

Austin, TX 78740

Carolyn K. Leonard

Regional Counsel

William B. Riley

11 00 Commerce St.,

Dallas, TX 75242

Regional Inspector

Paul F. Kearns

Western Region

All Regional Officers at 525 Market Street,

San Francisco, CA 941 05 unlessa different

address is indicated.

Regional Commissioner

Thomas A, Cardoza

Assistant Regional Commissioners:

Taxpayer Service& Returns Processing

John D.Johnson

Resources Management

Kenneth G. Rivett

Appellate

James C. Stigamire

Examination

Elmer Kletke

Criminal Investigation

Richard C. Wassenaar

Collection

Vacant

District Directors:

Anchorage, AK

Frank R. Berria

Boise, ID 83724

Philip N. Sansotta

Helena, MT 59601

Frederick C. Nielsen

Honolulu, HI 96850

William M. Wolf

Los Angeles, CA 90012

William H. Connett

Phoenix, AZ 85025

Prescott A. Berry

Portland, OR 97204

Ralph B. Short

Reno, NV 89509

Gerald F. Swanson

Salt Lake City, LIT 84111

Roland V, Wise

San Francisco, CA 94102

Michael D. Sassi

Seattle, WA 98174

Arturo A. Jacobs

Director, Fresno Service Center,

Fresno, CA 93888

Frederic F. Perdue

Director, Ogden Service Center,

Ogden, UT 8442

Robert H. Terry

Regional Counsel

Emory L. Langdon

Two Embarcadero Center,

San Francisco, CA 941 11

Regional Inspector

Billy G. Morrison

115

1; t
Organization Chart

H

C

H11

Map of the Regions, Districts,

and Service Centers

Key: Commistaimer of

~hternal Revenue

Washington, D C.)

N Regional

Commissioner

Included In Alaska Howe

Western Region

Region and District Legend:

Central Region Southeast Region

1 Cincinnati, Ohio 14 Atlanta, Ga.

23 Crayovieland Ohio 15 Birmingham, Al. glon~ Ky. 16 Chamblee, Go

(Cincinnati a SC) 17 C

4 Behalf, Mich. 18 G='~,q' C~ C

5 Indianapolis, Ind. 19 Jackson, Miss

6 Louisville, Ky. 20 Jacksonville Fle

7 P arkersburg, W. Va. 21 Memphis Ten,

Mid-Atlantic Region 22 Nashville, Tenn,

8 Baltimore, Md. Southwest Region

19 Newark, Nj. 23 Albuquerque,

10 Philadelphia, P N. Max.

I

P

12 R~us b.gh, Pe. 24 Austin, Tex.

chmond, Va. 25 Cheyenne, Wyo.

13 Wilmington, Del. 26 Dallas, Tax

227 Denver, Colo.

8 Little Rock, Ark.

117

0 District Director National Computer -Regional Boundary

0 Service Center

Centel

(Martinsburg, W. Va.)

~RS Data Center ---- District Boundary

Daln.r~ Mich.)

Office of International

Operations, National Office

I

29 New Orleans, Le. North Atlantic Region Western Region

30 Okahoma City,

31 W,chOkite . Kims.

111actot Region

32 Aberdeen S. Oak.

33 Chicago,

"I

.

34 [).a Mainett, ...

35 Fargo N. Dak

36 Kansas itya M

37 Milwau C ' 0

38 Orma."Nab"'

39 Springfield, 111,

40 St. Louis

41 St. Paul. Mum, Me

42 Albany, N.Y, 55 Anchorage. Alaska

'11 Andover. Mass. 56 Boise. Idaho

4 Augusta, Maine 57 Fresno. Calif.

4

5

~6 B=B Mass. 58 Helena, Mont.

14 Y* 59 Honolulu, Hawaii

47 N.Y~ 60 Los Angeles. Calif,

448 Burlington, Vt 61 Ogden, Utah

9 Hanford, Conn. 62 Phoenix, Ariz,

50 Holoville, N.Y,,C) 63 Portland. Ore.

(Brookhaven 4 Reno. Nov.

51 Man allim, NY, 65

sell

Lake City, Utah

52 N.w'Yo,k, NY, 66 San Francisco, Calif.

53 P rtsmOuth, N,H, 67 Seattle, Wash

54 Providence, i
118 Chapter Headings 119

Collecting the Revenue

Returns Processing/8

Mathematical Correction/8

Receipts/9

Refunds/13

Penalties and Interest/13

Tax Credits/13

Presidential Election Campaign Fund/14

Automated Information Filing/114

Combined Annual Wage Reporting/114

Assisting the Taxpayer

Call, Walk in or Write/16

Services/16

Toll-Free Phones/16

Educating Taxpayers/17

Simplifying the Forms/17

Publications/18

Graphic Arts Cited/19

Information Dissemination/19

"Where's My Refund?"/19

Resolving Problems/20

Making Information Available/20

Preparer Ethics/21

Helping Other Countries/21

State, Local and Campus/22

Earned Income Credit/22

Enforcing the Law

Examinations/24

How Returns Are Selected/24

Examination Results/24

Service Center Program/26

Computer Assisted Examinations/26

Coordinating Examinations/26

Tax Shelters/28

Joint Committee Review/28

Simultaneous Examinations/28

Oil Industry/28

Enrolled Agents/28

Appeals/29

Docketed or Not/29

Other Appeal Options/29

Criminal Investigations/30

Organized Crime/31

Collection/311

Delinquent Accounts and Returns/311

International Operations/32

U.S. Taxation Abroad/32

Treaties/32

Employee Plans/

Exempt Organizations/33 I

Managing the System

Planning and Research/36

Reorganization/36

Studies/36

Watching Legislation/37

Productivity/37

Measuring Compliance/38

Automating Examinations/38

Optical Scanning/38

Federal-State Test/38

Publishing Statistics/39

Tax Models/41

Projecting Returns Filed/411

Resources Management/42

Security/42

Equal Employment/42

Labor-Management/42

Paraprofessional Savings/43

Jobs for the Handicapped/43

Awards for Incentive/43

Internal Revenue Manual/44

Training/44

Instructing Others/45

Career Counseling/45

Logistics SupporV45

Data Services/46

Handling Payments/46

Case Reporting/46

Automated Information/47

National Computer Center/47

Data Center/48

Technical Activities/48

Tax Shelter Rulings/48

Art Advisory Panel/49

Internal Revenue Bulletin/49

Making Rulings Public/49

Inspection/50

Internal Audit/50

Maintaining Integrity/50

Internal Security/50

Bribery Awareness/51

Assaults and Threats/51

Checking the Workforce/511

Taking Precautions/51

Chief Counsel/52

Administrative Services/52

Criminal Tax/53

Disclosure Litigation/54

EP/EO/54

General Legal Services/55

General Litigation/56

Interpretative/56

Legislation and Regulations/57

Tax Litigation/58