GAO-01-301R Information on Federal Tax System 

United States General Accounting Office

Washington, DC 20548 

April 6, 2001 

The Honorable William M. Thomas 

Chairman 

The Honorable Charles E. Grassley 

Vice Chairman 

Joint Committee on Taxation 

Subject: Information Related to the Scope and Complexity of the Federal Tax System

The Internal Revenue Service (IRS) Restructuring and Reform Act of 1998 requires the Joint 

Committee on Taxation (JCT) to report to Congress on the overall state of the federal tax 

system and on proposals to simplify it. The requirement for this study stems from a 

recommendation made in 1997 by the National Commission on Restructuring the IRS. The 

Commission concluded that the tax law should be simplified. The Commission reported a 

connection between the complexity of the Internal Revenue Code (IRC) and the difficulty of 

administering it and taxpayer frustration with the tax system. It reported that such 

complexity can lead to inadvertent noncompliance, increased costs to taxpayers, and 

complicated tax collection. 

In a June 29, 2000 letter, we were asked to help the staff of the JCT in its study of the overall 

state of the federal tax system and proposals to simplify it. As agreed with the JCT, we 

obtained information on 

1. the scope and size of the IRC, the number of congressionally-mandated studies of the tax 

system, and the amount of tax guidance and regulations issued by IRS; 

2. the number and scope of IRS forms, schedules, publications, and worksheets; 

3. the number of tax returns filed and people claimed on these returns, by various 

characteristics for selected years; 

4. the amount of assistance provided to taxpayers by IRS, return preparers, and 

computerized software for selected years; 

5. the number and types of errors found by IRS when processing or auditing tax returns, by 

various return characteristics for selected years; 

6. the number and types of taxpayer disputes with IRS in the form of appeals and litigation 

in selected years; and finally, 

7. statistics associated with specific tax issues in the IRC. 

These 7 areas relate to a list of 27 questions/topics that JCT staff provided us. During several 

subsequent meetings, JCT staff adjusted and clarified some of the questions and asked that 

we provide the answers in several installments by September 30, 2000, to help them draft the 

Committee’s required report. We are issuing this letter to compile the information we had 

provided and to make it available to other interested parties. The questions, together with the 

relevant information that we obtained, form the substance of this correspondence and are 

included in the enclosures. 
2 GAO-01-301R Information on Federal Tax System 

To summarize: 

• The IRC had about 700 provisions that affected individuals and over 1,500 provisions that 

affected businesses. The IRC also had about 1.4 million words as of May 2000. As of June 

2000, the regulations implementing the IRC included close to 20,000 pages and about 8.6 

million words. (See enclosure I for more information.)

• For tax year 1999, the tax system included 649 forms, schedules, and separate 

instructions; about 160 worksheets; and about 340 publications with guidance on specific 

requirements of the tax system. The forms and schedules included about 16,100 lines and 

the publications included about 13,400 pages. (See enclosure II for more information.) 

• The number of individuals listed as filers of tax returns rose from about 152 million in 

1990 to about 160 million in 1997. In the same period, the number of people claimed on 

federal income tax returns rose from about 228 million to 241 million. (See enclosure III 

for more information.) 

• Taxpayers contacted IRS for assistance on about 117 million occasions in 1999, up from 

about 105 million contacts in 1996. Taxpayers also have been relying more on tax return 

preparers and tax return software to help prepare tax returns. (See enclosure IV for more 

information.) 

• In recent years, the most common errors IRS found when processing individual income 

tax returns involved the Earned Income Tax Credit and taxpayer identification numbers. 

Similarly, IRS found errors (after returns were processed) during audits of the returns. 

For individuals, errors varied by income levels—errors in determining gross income for 

lower income levels and errors in passing through tax items to shareholders for higher 

income levels. (See enclosure V for more information.) 

• IRS’ recent data on the most frequent types of tax issues that taxpayers appealed were 

limited to large corporations, with the most frequent issue involving the deduction of 

business expenses. The IRS data on issues litigated were limited to tax court cases 

involving individual taxpayers, with the most frequent issue in 1999 dealing with 

penalties. (See enclosure VI for more information.) 

• IRS had no data to answer a question about incentive stock options. IRS had limited data 

on the “top-heavy” requirements for pension plans, and we developed some relevant 

information for a separate report. (See enclosure VII for more information.) 

Our scope and objectives were limited to answering the 27 questions posed by the Committee 

and did not include an overall assessment of the tax system’s scope and complexity. While 

our responses quantify certain aspects of the tax system, such as the number of words and 

sections in the IRC, they do not address all the factors that might contribute to complexity or 

attempt to weigh the contributions of any factors. In addition, better understanding the 

relationship of the data to tax system complexity may often require additional analyses, 

including adjusting trends for other factors such as growth in the population or in the number 

of businesses. In addition, time did not permit us to verify the accuracy of the databases 

used in our tabulations and analyses, although we did attempt to obtain the best data 
3 GAO-01-301R Information on Federal Tax System 

available.1 The enclosures discuss our data limitations in more detail. In answering the 27 

questions, we 

• interviewed officials from IRS, Department of the Treasury, Securities and Exchange 

Commission, Library of Congress, and National Archives and Records Administration; 

• reviewed our prior tax reports as well as reports and studies from IRS, Treasury, and the 

National Commission on Restructuring the IRS; 

• reviewed and categorized the contents of the IRC and summarized other written data 

provided by IRS, Treasury, and the House Ways and Means Committee; and 

• analyzed computerized data extracted from IRS’ Statistics of Income database and 

electronic versions of the IRC and IRS regulations published by Tax Analysts. 

We did our work between June 2000 and October 2000 in accordance with generally accepted 

government auditing standards. On March 29, 2001, the Commissioner of IRS provided 

written comments on our draft correspondence (see enclosure VIII) that suggested two 

specific changes related to taxpayer assistance data. We changed the letter accordingly. We 

also received oral comments from the Department of the Treasury. Treasury’s comments 

addressed the clarity or accuracy of certain passages and suggested adding some information 

to provide context. We made changes, where appropriate, based on these comments. 

As agreed with your office, unless you publicly announce its contents earlier, we plan no 

further distribution of this correspondence until 30 days from the above date. At that time, 

we will send copies to the Honorable Paul H. O’Neill, Secretary of the Treasury, the 

Honorable Charles O. Rossotti, Commissioner of IRS, the Honorable Mitchell E. Daniels, Jr., 

Director, Office of Management and Budget, and interested congressional committees. The 

letter is also available on GAO’s home page at http://www.gao.gov. If you have any questions 

about this correspondence, you may contact Tom Short or me on (202) 512-9110. Key 

contributors to this letter are listed in enclosure IX. 

Sincerely yours, 

Michael Brostek 

Director, Tax Issues 

 

1

Also, we frequently relied on IRS’ Statistics of Income (SOI) database as noted in the enclosures. The 

SOI data in this report, except for data on large corporations, are based on probability samples of 

taxpayer returns and thus subject to some imprecision due to sampling variability. 
Enclosure I 

4 GAO-01-301R Information on Federal Tax System 

IRC, IRS Guidance and Regulations, and Studies of 

the Tax System

Question 1: How many provisions (sections) are in the current IRC, categorized by 

those that apply to individuals, businesses, and other entities? 

In order to categorize and count every IRC section, we agreed with the Joint Committee on 

Taxation (JCT) to use three main categories: (1) individuals; (2) businesses, including small 

businesses and self-employed individuals as well as larger businesses; and (3) tax-exempt 

organizations, employee plans and benefits, and government entities (see table I.1). As agreed 

with JCT staff, we separately counted those sections that apply to small business and selfemployed taxpayers. Many of the small business and self-employed sections were identified 

using computer-based research and are subject to limitations, such as the reliability of the 

search terms used in the research. As a consequence, table I.1 may not encompass all of the 

applicable provisions in those categories. 

We placed a provision in more than one category when applicable. For example, we counted 

IRC provisions related to estate and gift taxes under our business category. We included those 

provisions in the business category since they evince some business characteristics (e.g., small 

business owners’ transfer of their businesses to others would be affected by these provisions). 

However, we also counted these provisions in our individual category since these provisions 

also clearly apply to, and are of concern to, individual taxpayers. Similarly, those provisions that 

relate to individuals but that involve international tax issues were counted in both our individual 

and business categories for the same reasons. 

We also included those provisions related to certain types of investments in more than one 

category. For example, we included some of the provisions related to Regulated Investment 

Companies in both the individual and business categories because their shareholders are often 

individuals whose tax treatment would also be determined by those provisions. Similarly, we 

included some of the provisions related to corporations in both the individual and business 

categories because of the tax treatment of the shareholders. As a result of our approach, a 

number of provisions were included in both the individual and business categories. 

Our categorization of the IRC was inherently judgmental and may not necessarily conform to 

the judgment of others. Further, to our knowledge, IRS has not categorized the IRC by its four 

operating divisions. Our categorizations are not intended to suggest that a specific IRS division 

will or should address matters arising under the categories we used for this letter. 

Table I.1: Number of IRC Sections, by Category 

Category Number of sectionsa

Individuals 693 

Businesses (including small business and self-employed) 1501 

Small business 13 

Self-employed 11 

Tax-exempt, employee plans, government entities 445 

Otherb53 a Certain IRC sections are associated with more than one category

b Includes IRC sections that did not seem to fall within any of the above categories. 

Source: GAO analysis of the IRC.
Enclosure I 

5 GAO-01-301R Information on Federal Tax System 

Question 2: What is the length of the IRC based on number of words? 

The IRC, title 26, contained 1,395,028 words as of May 2000. For the purpose of this count, a 

word is defined as any string of characters or digits separated from others by a space. The count 

is based on an electronic version of the IRC published by Tax Analysts. The count does not 

include notes and cross-references added by the publisher. 

Question 3: How many tax-related studies have been mandated by Congress of the 

Department of the Treasury and IRS since 1986? List the studies. 

The Department of the Treasury and IRS have not systematically tracked the number of taxrelated studies mandated of them by Congress. To respond to this question, Treasury officials 

reviewed their available records and found 87 tax-related studies that Treasury or IRS was 

required to deliver to Congress from January 1, 1986, through March 21, 2001. The Department 

of the Treasury listing of these studies is shown in figure I.1. Treasury officials emphasized that 

the list is a draft document.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 

Figure I.1: Draft Department of the Treasury List of Tax-Related Studies Mandated Since 19866

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 106-170 Taxable REITs Section 547, Ticket to

Work and Work Incentives Improvement Act of1999

SEC. 547. STUDY RELATING TO TAXABLE REIT SUBSIDIARIES.The Secretary of the Treasury shall conduct a study to determine how many taxable REIT subsidiaries are in existence and the aggregate amount of taxespaid by such subsidiaries. The Secretary shall submit a report to the Congress describing the results of such study.

PL 105-277 Depreciation Section 2022, Tax and Trade Relief Extension Act "Report to the Congress on Depreciation Recovery

of 1998 Periods and Methods" Dept. of Treasury, July 2000.

132pp.

03/31/2000 SEC. 2022 DEPRECIATION STUDY.The Secretary of the Treasury (or the Secretary's delegate)--(1) shall conduct a comprehensive study of the recovery

periods and depreciation methods under section 168 of the Internal Revenue Code of 1986, and (2) not later than March 31, 2000, shall submit the results ofsuch study, together with recommendations for determining such periods and methods in a more rational manner, to the Committee on Ways and Means ofthe House of Representatives and the Committee on Finance of the Senate.

PL 105-219 Credit Union Taxation Sec. 401 Credit Union Membership Access Act "Comparing Credit Unions with Other Depository

Institutions." United States Department of the Treasury,January 2001. 66pp.http://www.treas.gov/press/releases/docs/CUReg.doc

08/07/1999 SEC. 401. STUDY AND REPORT ON DIFFERING REGULATORY TREATMENT.

(a) STUDY- The Secretary shall conduct a study of--(1) the differences between credit unions and other federally insured financial institutions, including regulatory differences with respect to regulationsenforced by the Office of Thrift Supervision, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Administration;

and

(2) the potential effects of the application of Federal laws, including Federal tax laws, on credit unions in the same manner as those laws are applied to other

federally insured financial institutions.

(b) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary shall submit a report to the Congress on the results of the study
Enclosure I 

 GAO-01-301R Information on Federal Tax System 7

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-219 Small Bank Taxation Sec. 403 Credit Union Membership Access Act "Comparing Credit Unions with Other Depository

Institutions." United States Department of the Treasury,January 2001. 66pp.http://www.treas.gov/press/releases/docs/CUReg.doc

08/07/1999 SEC. 403. TREASURY REPORT ON REDUCED TAXATION AND VIABILITY OF SMALL BANKS.

The Secretary shall, not later than 1 year after the date of enactment of this Act, submit a report to the Congress containing--(1) recommendations for such legislative and administrative action as the Secretary deems appropriate, that would reduce and simplify the tax burden for--(A) insured depository institutions having less than $1,000,000,000 in assets; and(B) banks having total assets of not less than $1,000,000,000 nor more than $10,000,000,000; and(2) any other recommendations that the Secretary deems appropriate that would preserve the viability and growth of small banking institutions in the UnitedStates.

PL 105-206 Administration of penalties and interest Sec. 3801, IRS. Restructuring and Reform Act "Report to The Congress on Penalty and Interest

Provisions of the Internal Revenue Code", Dept. ofTreasury, Office of Tax Policy, October 1999. 161pp.

07/22/1999 SEC. 3801. ADMINISTRATION OF PENALTIES AND INTEREST.

The Joint Committee on Taxation and the Secretary of the Treasury shall each conduct a separate study--(1) reviewing the administration and implementation by the Internal Revenue Service of the interest and penalty provisions of the Internal Revenue Code of1986 (including the penalty reform provisions of the Omnibus Budget Reconciliation Act of 1989); and(2) making any legislative and administrative recommendations the Committee or the Secretary deems appropriate to simplify penalty or interest administrationand reduce taxpayer burden.Such studies shall be submitted to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate not laterthan 1 year after the date of the enactment of this Act.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 8

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-206 Confidentiality of tax return information Sec. 3802, IRS. Restructuring & Reform Act "Report to the Congress on Scope and Use of Taxpayer

Confidentiality and Disclosure Provisions: Volume I Studyof General Provisions." Office of Tax Policy, Departmentof the Treasury, October 2000. 114pp.http://www.treas.gov/taxpolicy/library/confide.pdf

01/22/2000 SEC. 3802. CONFIDENTIALITY OF TAX RETURN INFORMATION.

The Joint Committee on Taxation and the Secretary of the Treasury shall each conduct a separate study of the scope and use of provisions regardingtaxpayer confidentiality, and shall report the findings of such study, together with such recommendations as the Committee or the Secretary deemsappropriate, to the Congress not later than 18 months after the date of the enactment of this Act. Such study shall examine--(1) the present protections for taxpayer privacy;(2) any need for third parties to use tax return information;(3) whether greater levels of voluntary compliance may be achieved by allowing the public to know who is legally required to file tax returns, but does notfile tax returns;(4) the interrelationship of the taxpayer confidentiality provisions in the Internal Revenue Code of 1986 with such provisions in other Federal law, includingsection 552a of title 5, United States Code (commonly known as the `Freedom of Information Act');(5) the impact on taxpayer privacy of the sharing of income tax return information for purposes of enforcement of State and local tax laws other than income

tax laws, and including the impact on the taxpayer privacy intended to be protected at the Federal, State, and local levels under Public Law 105-35, the

Taxpayer Browsing Protection Act of 1997; and(6) whether the public interest would be served by greater disclosure of information relating to tax exempt organizations described in section 501 of theInternal Revenue Code of 1986.

PL 105-206 Electronic filing Sec. 2001(d), IRS Restructuring & Reform Act

06/30/1999 SEC. 2001. ELECTRONIC FILING OF TAX AND INFORMATION RETURNS. (d) ANNUAL REPORTS- Not later than June 30 of each calendar year after 1998, the

Chairperson of the Internal Revenue Service Oversight Board, the Secretary of the Treasury, and the Chairperson of the electronic commerce advisory

Every June group established under subsection (b)(2) shall report to the Committees on Ways and Means, Appropriations, Government Reform and Oversight, and Small

Business of the House of Representatives and the Committees on Finance, Appropriations, Governmental Affairs, and Small Business of the Senate on--(1) the progress of the Internal Revenue Service in meeting the goal of receiving electronically 80 percent of tax and information returns by 2007;(2) the status of the plan required by subsection (b);(3) the legislative changes necessary to assist the Internal Revenue Service in meeting such goal; and(4) the effects on small businesses and the self-employed of electronically filing tax and information returns.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 9

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-206 Due date for certain information reports Sec. 2002(b)(2), IRS Restructuring & Reform Act

06/30/1999 SEC. 2002. DUE DATE FOR CERTAIN INFORMATION RETURNS. (b) STUDY RELATING TO TIME FOR PROVIDING NOTICE TO RECIPIENTS-

(1) IN GENERAL- The Secretary of the Treasury shall conduct a study evaluating the effect of extending the deadline for providing statements to personswith respect to whom information is required to be furnished under subparts B and C of part III of subchapter A of chapter 61 of the Internal Revenue Codeof 1986 (other than section 6051 of such Code) from January 31 to February 15 of the year in which the return to which the statement relates is required tobe filed.(2) REPORT- Not later than June 30, 1999, the Secretary of the Treasury shall submit a report on the study under paragraph (1) to the Committee on Ways

PL 105-206 Noncompliance Sec. 3803, IRS Restructuring & Reform Act07/22/1999 SEC. 3803. STUDY OF NONCOMPLIANCE WITH INTERNAL REVENUE LAWS BY TAXPAYERS.

Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury and the Commissioner of Internal Revenue shall jointly conduct

a study, in consultation with the Joint Committee on Taxation, of the noncompliance with internal revenue laws by taxpayers (including willful noncompliance

and noncompliance due to tax law complexity or other factors) and report the findings of such study to Congress.

PL 105-206 Payments made for detection of Sec. 3804, IRS Restructuring & Reform Act

underpayments and fraud

07/22/1999 SEC. 3804. STUDY OF PAYMENTS MADE FOR DETECTION OF UNDERPAYMENTS AND FRAUD.

Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury shall conduct a study and report to Congress on the use ofsection 7623 of the Internal Revenue Code of 1986 including--(1) an analysis of the present use of such section and the results of such use; and(2) any legislative or administrative recommendations regarding the provisions of such section and its application.

PL 105-206 Return-free tax system Sec. 2004(b), IRS Restructuring & Reform Act

06/30/2000 SEC. 2004. RETURN-FREE TAX SYSTEM.

(a) IN GENERAL- The Secretary of the Treasury or the Secretary's delegate shall develop procedures for the implementation of a return-free tax system

Every June under which appropriate individuals would be permitted to comply with the Internal Revenue Code of 1986 without making the return required under sectionthrough 2007 6012 of such Code for taxable years beginning after 2007.

(b) REPORT- Not later than June 30 of each calendar year after 1999, the Secretary shall report to the Committee on Ways and Means of the House ofRepresentatives and the Committee on Finance of the Senate on--(1) what additional resources the Internal Revenue Service would need to implement such a system;(2) the changes to the Internal Revenue Code of 1986 that could enhance the use of such a system;(3) the procedures developed pursuant to subsection (a); and(4) the number and classes of taxpayers that would be permitted to use the procedures developed pursuant to subsection (a).
Enclosure I 

 GAO-01-301R Information on Federal Tax System 10

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-206 Tax Law Complexity Analysis Sec. 4022, IRS Restructuring & Reform Act "Annual Report of the Commissioner of the Internal

Revenue Service on Tax Law Complexity." Department of

Treasury, Internal Revenue Service, June 5, 2000. 83pp.

03/01/2001 SEC. 4022. TAX LAW COMPLEXITY ANALYSIS.

(a) COMMISSIONER STUDYAnnually, 3/1 (1) IN GENERAL- The Commissioner of Internal Revenue shall conduct each year after 1998 an analysis of the sources of complexity in administration of theFederal tax laws. Such analysis may include an analysis of--(A) questions frequently asked by taxpayers with respect to return filing;(B) common errors made by taxpayers in filling out their returns;(C) areas of law which frequently result in disagreements between taxpayers and the Internal Revenue Service;(D) major areas of law in which there is no (or incomplete) published guidance or in which the law is uncertain;(E) areas in which revenue officers make frequent errors interpreting or applying the law;(F) the impact of recent legislation on complexity; and(G) forms supplied by the Internal Revenue Service, including the time it takes for taxpayers to complete and review forms, the number of taxpayers whouse each form, and how recent legislation has affected the time it takes to complete and review forms.(2) REPORT- The Commissioner shall not later than March 1 of each year report the results of the analysis conducted under paragraph (1) for the precedingyear to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate. The report shall include anyrecommendations--(A) for reducing the complexity of the administration of Federal tax laws; and(B) for repeal or modification of any provision the Commissioner believes adds undue and unnecessary complexity to the administration of the Federal taxlaws.

PL 105-206 Access to Account Information Sec. 2005(b), IRS Restructuring & Reform Act

12/31/2003 SEC. 2005. ACCESS TO ACCOUNT INFORMATION.

(a) IN GENERAL- Not later than December 31, 2006, the Secretary of the Treasury or the Secretary's delegate shall develop procedures under which ataxpayer filing returns electronically (and their designees under section 6103(c) of the Internal Revenue Code of 1986) would be able to review thetaxpayer's account electronically, but only if all necessary safeguards to ensure the privacy of such account information are in place.(b) REPORT- Not later than December 31, 2003, the Secretary of the Treasury shall report on the progress the Secretary is making on the development ofprocedures under subsection (a) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

PL 105-061 EITC Compliance Initiative Treasury and General Governments Appropriation "IRS Tracking Earned Income Tax Credit Appropriation" --

Act for FY 1998 Department of the Treasury, Internal Revenue Service,

Quarterly reports beginning in FY 1998 (typically 12pages). http://www.fin.irs.gov/revanal/eitc_menu.htm

IRS reports quarterly to the Appropriations committee regarding the level of expenditures under the EITC compliance initiative and the effects on compliance.

Quarterly
Enclosure I 

 GAO-01-301R Information on Federal Tax System 11

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-034 Study of feasibility of moving collection Sec. 909, Taxpayer Relief Act of 1997 "Report to the Congress on Options for Moving the

point for distilled spirits excise tax Collection Point for the Distilled Spirits Excise Tax."

Department of the Treasury, March 1998. 34pp.

03/31/1998 SEC. 909. STUDY OF FEASIBILITY OF MOVING COLLECTION POINT FOR DISTILLED SPIRITS EXCISE TAX.

(a) IN GENERAL- The Secretary of the Treasury or his delegate shall conduct a study of options for changing the event on which the tax imposed by section5001 of the Internal Revenue Code of 1986 is determined. One such option which shall be studied is determining such tax on removal from registeredwholesale warehouses. In studying each such option, such Secretary shall focus on administrative issues including--(1) tax compliance,(2) the number of taxpayers required to pay the tax,(3) the types of financial responsibility requirements that might be required, and(4) special requirements regarding segregation of non-tax-paid distilled spirits from other products.Such study shall review the effects of each such option on the Department of the Treasury (including staffing and other demands on budgetary resources)and the change in the period between the time such tax is currently paid and the time such tax would be paid under each such option.(b) REPORT- The report of such study shall be submitted to the Committee on Finance of the Senate and the Committee on Ways and Means of the House ofRepresentatives not later than March 31, 1998.

PL 105-034 Expanded SSA record for tax Sec. 1090, Taxpayer Relief Act of 1997

enforcement

SEC. 1090. EXPANDED SSA RECORDS FOR TAX ENFORCEMENT.(a) EXPANSION OF COORDINATED ENFORCEMENT EFFORTS OF IRS AND HHS OFFICE OF CHILD SUPPORT ENFORCEMENT-(1) STATE REPORTING OF SSN OF CHILD- Section 454A(e)(4)(D) of the Social Security Act (42 U.S.C. 654a(e)(4)(D)) is amended by striking `the birth dateof any child' and inserting `the birth date and, beginning not later than October 1, 1999, the social security number, of any child'.(2) FEDERAL CASE REGISTRY OF CHILD SUPPORT ORDERS- Section 453(h) of such Act (42 U.S.C. 653(h)) is amended--(A) in paragraph (2), by adding at the end the following: `Beginning not later than October 1, 1999, the information referred to in paragraph (1) shall includethe names and social security numbers of the children of such individuals.'; and(B) by adding at the end the following:`(3) ADMINISTRATION OF FEDERAL TAX LAWS- The Secretary of the Treasury shall have access to the information described in paragraph (2) for thepurpose of administering those sections of the Internal Revenue Code of 1986 which grant tax benefits based on support or residence of children.'.(3) COORDINATION BETWEEN SECRETARIES- The Secretary of the Treasury and the Secretary of Health and Human Services shall consult regarding theimplementation issues resulting from the amendments made by this subsection, including interim deadlines for States that may be able before October 1,1999, to provide the data required by such amendments. The Secretaries shall report to Congress on the results of such consultation.(4) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 1998.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 12

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 105-034 Registration of confidential corporate Conference Report on HR 2014, Taxpayer Relief "The White Paper: The Problem of Corporate Tax Shelters:

tax shelters and substantial Act of 1997, page H6548 Discussion, Analysis, and Legislative Proposals."understatement penalty Department of the Treasury, July 1999. 167pp.

02/28/1998 The House bill also directs the Treasury Department, in consultation with the Department of Justice, to issue a report to the tax-writing committees on the

following tax shelter issues: (1) a description of enforcement efforts under section 7408 of the Code (relating to actions to enjoin promoters of abusive taxshelters) with respect to corporate tax shelters and the lawyers, accountants, and others who provide opinions (whether or not directly addressed to thetaxpayer) regarding aspects of corporate tax shelters; (2) an evaluation of whether the penalties regarding corporate tax shelters are generally sufficient;and (3) an evaluation of whether confidential tax shelter registration should be extended to transactions where the investor (or potential investor) is not acorporation. The report is due one year after the date of enactment.

PL 104-191 Income Tax Compliance by U.S. Citizens Sec. 513, Health Insurance Portability Act "Income Tax Compliance by U.S. Citizens and U.S. Lawful

and U.S. Lawful Permanent Residents Permanent Residents Residing Outside the United States

Residing Outside the United States and and Related Issues", Department of the Treasury, OfficeRelated Issues of Tax Policy, May 1998. 47pp.

11/21/1996 SEC. 513. REPORT ON TAX COMPLIANCE BY UNITED STATES CITIZENS AND RESIDENTS LIVING ABROAD.

Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall prepare and submit to the Committee on Ways andMeans of the House of Representatives and the Committee on Finance of the Senate a report--(1) describing the compliance with subtitle A of the Internal Revenue Code of 1986 by citizens and lawful permanent residents of the United States (withinthe meaning of section 7701(b)(6) of such Code) residing outside the United States, and(2) recommending measures to improve such compliance (including improved coordination between executive branch agencies).

PL 104-191 Medical Savings Accounts Sec. 301, Health Insurance Portability and

Accountability Act of 1996 (PL. 104-191)

SEC. 301. MEDICAL SAVINGS ACCOUNTS. (k) MONITORING OF PARTICIPATION IN MEDICAL SAVINGS ACCOUNTS- The Secretary of the Treasury or hisdelegate shall--(1) during 1997, 1998, 1999, and 2000, regularly evaluate the number of individuals who are maintaining medical savings accounts and the reduction inrevenues to the United States by reason of such accounts, and(2) provide such reports of such evaluations to Congress as such Secretary determines appropriate.

PL 104-188 Alternative Collection of Motorboat Conference Report on Small Business Job "Report to The Congress on The Taxation of Diesel Fuel

Diesel Fuel Tax Protection Act (PL. 104-188) page H9622 Used in Noncommercial Motorboats", Department of the

Treasury, June 1997. 13pp.

04/01/1997 In addition, the Senate Finance Committee requested that the Treasury Department study possible alternatives to the current collection regime for motoboat

diesel fuel that will provide comparable compliance with the law, and report to the House Committee on Ways and Means and the Senate Committee onFinance no later than April 1, 1997.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 13

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 104-188 Adoption Tax Benefit Small Business Job Protection Act (PL. 104-188) "Report to Congress on Tax Benefits for Adoption."

Department of the Treasury, October 2000. 69pp.http://www.treas.gov/taxpolicy/library/adoption.pdf

01/01/2000 `SEC. 137. ADOPTION ASSISTANCE PROGRAMS.

(d) STUDY AND REPORT- The Secretary of the Treasury shall study the effect on adoptions of the tax credit and gross income exclusion established by theamendments made by this section and shall submit a report regarding the study to the Committee on Finance of the Senate and the Committee on Ways andMeans of the House of Representatives not later than January 1, 2000

PL 104-168 Interest on Tax Overpayments and Sec. 1208, The Taxpayer Bill of Rights "Report to the Congress on Netting of Interest on Tax

Underpayments Overpayments and Underpayments." Department of the

Treasury, April 1997. 44pp.

Secretary of the Treasury shall submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of theSenate, a study of (1) the legal and policy issues related to the netting of interest on federal tax overpayments and underpayments; and (2) the InternalRevenue Service’s adminstrative practices in that regard.

PL 104-168 Joint Return Related Issues, Innocent Sec. 401 Taxpayer Bill of Rights 2 "Report tot he Congress on Joint Liability and Innocent

Spouse Spouse Issues." Department of the Treasury, February

1998. 58pp.

01/30/1997 TITLE IV--JOINT RETURNS

SEC. 401. STUDIES OF JOINT RETURN-RELATED ISSUES.The Secretary of the Treasury or his delegate and the Comptroller General of the United States shall each conduct separate studies of--(1) the effects of changing the liability for tax on a joint return from being joint and several to being proportionate to the tax attributable to each spouse,(2) the effects of providing that, if a divorce decree allocates liability for tax on a joint return filed before the divorce, the Secretary may collect such liabilityonly in accordance with the decree,(3) whether those provisions of the Internal Revenue Code of 1986 intended to provide relief to innocent spouses provide meaningful relief in all caseswhere such relief is appropriate, and(4) the effect of providing that community income (as defined in section 66(d) of such Code) which, in accordance with the rules contained in section 879(a)of such Code, would be treated as the income of one spouse is exempt from a levy for failure to pay any tax imposed by subtitle A by the other spouse for a

taxable year ending before their marriage.

The reports of such studies shall be submitted to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of theSenate within 6 months after the date of the enactment of this Act.

PL 103-066 Feasibility of IRS Collecting Repayments Conference Report on the Omnibus Budget "Study of the Feasibility of the IRS Collecting Repayments

of Federal Student Loans Reconciliation Act of 1993 of Federal Student Loans." Department of the Treasury,

Department of Education, June 1995. 14pp.

The Treasury Department, in consultation with the Department of Education, to conduct a study of the feasibility of implementing a system for the repaymentof Federal student loans through wage withholding or other means involving the IRS.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 14

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 103-066 Excess Passive Assets Rules and the Conference Report to the Omnibus Budget "Report to the Congress on Adjusting the Excess Passive

Passive Foreign Investment Company Reconciliation Act of 1993 Assets Rules and the Passive Foreign InvestmentRules to Account for Marketing Company Rules to Account for Marketing Intangibles."

Department of the Treasury, November 1994. 23pp.

Department of Treasury to study whether the excess passive assets rules for the current taxation of certain earning of controlled foreign corporations andthe passive foreign investment company rules should be amended to account for intangivle assets created by marketing expenditures, in a manner similar tothat used to account for assets created by research or experimental expenditures.

PL 103-066 Effects of Notification of EITC advance Conference Report on HR 2264, Omnibus Budget "Advance Earned Income Tax Credit: 1994 and 1997"

payment option Reconciliation Act of 1993 page H5928 Department of the Treasury, Internal Revenue Service,

October 1999. 24 pp.

H5928 C. Expansion and Simplification of Earned Income Tax Credit (sec. 14131 of the House bill, sec. 8131 of the Senate amendment, sec. 13131 of theConference agreement, and secs. 32, 162, 213, and 3507 of the Code)The Internal Revenue Service (IRS) is required to provide notice to taxpayers with qualifying children who receive a refund on account of the EITC that thecredit may be available on an advance payment basis. To prevent taxpayers from incurring an unexpectedly large tax liability due to receipt of the EITC on anadvance payment basis, the amount of advance payment allowable in a taxable year is limited to 60 percent of the maximum credit available to a taxpayerwith one qualifying child. After providing these notices to taxpayers for two taxable years, the Secretary of the Treasury is directed to study the effect ofthe notice program on utilization of the advance payment mechanism. Based on the results of this study, the Secretary may recommend modifications to thenotice program to the Committee on Ways and Means and the Committee on Finance.

PL 103-066 Section 212 Expenses and the Conference Report on the Omnibus Budget "Report to the Congress on Section 212 Expenses and

Alternative Minimum Tax Reconciliation Act of 1993, Section 13113 The Alternative Minimum Tax." Department of the

Treasury, December 1994. 15pp.

03/01/1994 Department of the Treasury should study whether the present-law treatment of section 212 expenses under the alternative minimum tax (AMT) creates a

disincentive for "the long-term investments that Congress has intended to foster through the capital gains exclusion."

PL 103-066 Vaccine Injury Compensation Program Conference Report on Omnibus Budget "National Vaccine Injury Compensation Program:

Reconciliation Act of 1993 Financing the Post-1988 Program and Other Issues."

Department of the Treasury, August 1994. 26pp.

08/10/1994 The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall conduct a study of the Vaccine Injury Compensation

Trust Fund and several related matters.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 15

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 103-066 Investments in U.S. Non-Corporate Conference Report on HR 2264, Omnibus Budget

Obligations Reconciliation Act of 1993 page H5958

12/31/1993 Study on investments in U.S. property

The conferees understand that a controlled foreign corporation is not treated as holding U.S. property under section 956 if it invests in an obligation of anunrelated U.S. corporation. A similar rule, however, is not applicable to an investment in an obligation of an unrelated U.S. person other than a corporation.The conferees intend that the Treasury Department study the tax treatment of investments by controlled foreign corporations in obligations of U.S. personsother than corporations, and provide the House Committee on Ways and Means and the Senate Committee on Finance with a report of such study byDecember 31, 1993. The study should include the Treasury's views and recommendations as to whether the rules of section 956 should be amended insofar

as they relate to the treatment of investments by controlled foreign corporations in the obligations of unrelated U.S. persons other than corporations, along

with a discussion of the merits and consequences of any such amendment.

PL 103-066 Treatment of Certain Financing and Conference Report on HR 2264, Omnibus Budget

Credit Services Businesses Reconciliation Act of 1993 page H5957

03/01/1994 Study on treatment of certain financing and credit services businesses

The conference agreement provides that certain income derived in the conduct of a banking or insurance business, or, in the case of U.S. shareholders of acontrolled foreign corporation, a securities business, may be excluded from the definition of passive income for purposes of the PFIC rules and the excesspassive assets rules. These rules, however, do not apply to income derived in the conduct of financing and credit services businesses. The confereesintend that the Treasury Department study the tax treatment of income derived in the conduct of financing and credit services businesses, and provide theHouse Committee on Ways and Means and the Senate Committee on Finance with a report of such study by March 1, 1994. The study should include theTreasury's views and recommendations as to whether the PFIC rules and the excess passive assets rules should be amended insofar as they relate to thetreatment of such income, along with a discussion of the merits and consequences of any such amendment. In addition, the study should address anyspecial considerations that might pertain in this regard with respect to a foreign corporation that is not a controlled foreign corporation, and discuss theextent to which appropriate anti-abuse rules would be sufficient to address special concerns that might arise in this context.

PL 103-066 Advance Valuation Procedure Omnibus Budget Reconciliation Act of 199308/01/1994 Develop an advance valuation procedure whereby taxpayer could enter agreement with Secretary regarding value of tangible personal property prior to

donation to charitable organization.

PL 103-066 Mergers and Acquisitions Omnibus Budget Reconciliation Act of 1993

12/01/1995 Examine effect of legislation on pricing of acquisitions and on the value of different types of intangibles.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 16

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 102-240 Report on Non-highway Recreational Sec. 8003 of the Highway Reauthorization Act of Note: No FY1996 report was issued because the relevant

Fuel Taxes 1991 trust fund was repealed by Section 9011 of the

Transportation Equity Act for the 21st Century, PL105-178, prior to the report's release."Report to the Congress on Nonhighway Recreational Fuel

Taxes: Fiscal Years 1994 and 1995". Department of the

Treasury, April 1997. 9pp."Report to the Congress on Nonhighway Recreational Fuel

Taxes: Fiscal Years 1992 and 1993". Department of the

Treasury, June 1994. 8pp.

SEC. 8003. NATIONAL RECREATIONAL TRAILS TRUST FUND. (d) REPORT ON NONHIGHWAY RECREATIONAL FUEL TAXES- The Secretary of the Treasuryshall, within a reasonable period after the close of each of fiscal years 1992 through 1996, submit a report to the Committee on Ways and Means of the

After close of FY, House of Representatives and the Committee on Finance of the Senate specifying his estimate of the amount of non-highway recreational fuel taxes (as92-96 defined in section 9503(c)(6) of the Internal Revenue Code of 1986, as added by this Act) received in the Treasury during such fiscal year.PL 101-508 Tax Provisions of Micronesia Compact Sec. 11831(b) Omnibus Budget Reconciliation Act Study completed December 1990. Citation unavailable.

of Free Association of 1990 as it amends Sec. 407. The Compact of

Free Association Act of 1985. 48 USC 1681 (PL99-239)

01/01/1991 Online summary states:

Title IV: Clarification of Certain Trade and Tax Provisions of the Compact - Requires the Secretary of the Treasury to conduct a study on the effects of theCompact's tax provisions and to report such results to specified congressional committees.

PL 101-508 Minimum Participation Rule Sec. 11831(b) Omnibus Budget Reconciliation Act "Study of the Effect of the Minimum Participation

of 1990 as it amends Sec. 6056. The Technical Requirements on Government Contractors." Department

and Misc. Revenue Act of 1988 (PL 100-647) of the Treasury, March 1991. 13pp.

02/15/1991 Online summary states:

Directs the Secretary of the Treasury to study and report to specified congressional committees on the application of specified participation requirements toGovernment contractors who establish separate plans to meet requirements that they provide certain employee retirement benefits.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 17

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-508 Treatment of Certain Technical Sec. 11831(b) Omnibus Budget Reconciliation Act "Taxation of Technical Service Personnel: Report on

Personnel of 1990 as it amends Sec. 6072. The Technical Section 1706 of the Tax Reform Act of 1986." Department

and Misc. Revenue Act of 1988 (PL 100-647) of the Treasury, February 1991. 80pp.

02/15/1991 Online text unavailable. Letter accompanying report states: Section 6072 of Public Law 100-647, the Technical and Miscellaneous Revenue Act of 1988,

provides that the Secretary of the Treasury shall conduct a study of the treatment provided by section 1706 of the Tax Reform Act of 1986.

PL 101-508 Return Requirement Where Cash Sec. 11318 Omnibus Budget Reconciliation Act "Operation of Section 6050I of the Internal Revenue Code:

Received in Trade or Business 1990 A study conducted pursuant to section 11318 of the

Omnibus Budget Reconciliation Act of 1990." Departmentof the Treasury, Internal Revenue Service, April 1991.

03/31/1991 TITLE XI--REVENUE PROVISIONS Subtitle C--Other Revenue Increases Part II--Compliance Provisions

SEC. 11318. RETURN REQUIREMENT WHERE CASH RECEIVED IN TRADE OR BUSINESS.(d) STUDY- The Secretary of the Treasury or his delegate shall conduct a study on the operation of section 6050I of the Internal Revenue Code of 1986.Such study shall include an examination of--(1) the extent of compliance with the provisions of such section,(2) the effectiveness of the penalties in ensuring compliance with the provisions of such section,(3) methods to increase compliance with the provisions of such section and ways Form 8300 could be simplified, and(4) appropriate methods to increase the usefulness and availability of information submitted under the provisions of such section.Not later than March 31, 1991, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee onFinance of the Senate a report on the study conducted under this subsection, together with such recommendations as he may deem advisable.

PL 101-508 Depreciation of Business-Use Light Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to Congress on the Depreciation of Business-Use

Trucks of 1990 as it amends Sec. 7612(f). Omnibus Light Trucks." Department of the Treasury, September

Budget Reconciliation Act of 1989 (PL 101-239) 1991. 37pp.

04/15/1991 SEC. 7612. OTHER MODIFICATIONS TO MINIMUM TAX. (f) STUDY OF DEPRECIATION TREATMENT OF CERTAIN VEHICLES-

(1) IN GENERAL- The Secretary of the Treasury or his delegate shall conduct a study on the proper class life for cars and light trucks.(2) REPORT- Not later than the day 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Ways andMeans of the House of Representatives and the Committee on Finance of the Senate on the report conducted under paragraph (1), together with suchrecommendations as he may deem advisable.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 18

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-508 Pensions Plans Full Funding Limitation Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to Congress on the Effect of the Full Funding Limit

of 1990 as it amends Sec. 9301(c)(3), Title IX, on Pension Benefit Security." Department of the Treasury,

Omnibus Budget Reconciliation Act of 1987 (PL May 1991. 96pp.100-203)

04/15/1991 Online summary states:

Subtitle D: Pension Provisions - Part I: Full-Funding Limitation - Amends the IRC and the Employee Retirement Income Security Act of 1974 (ERISA) to revisethe definition of "full funding limitation" in connection with an employer's deductible contributions to a qualified defined benefit plan.Directs the Secretary of the Treasury, by August 15, 1988, to: (1) prescribe regulations to implement these new full-funding limitation provisions; and (2)study and report to specified congressional committees on the effect of the change on benefit security under defined benefit pension plans.

PL 101-508 Depreciation of Business-Use Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to Congress on the Depreciation of Business-Use

Passenger Cars of 1990 as it amends Sec. 7612(f). Omnibus Passenger Cars." Department of the Treasury, April 1991.

Budget Reconciliation Act of 1989 (PL 101-239) 37pp.

04/15/1991 SEC. 7612. OTHER MODIFICATIONS TO MINIMUM TAX. (f) STUDY OF DEPRECIATION TREATMENT OF CERTAIN VEHICLES-

(1) IN GENERAL- The Secretary of the Treasury or his delegate shall conduct a study on the proper class life for cars and light trucks.(2) REPORT- Not later than the day 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Ways andMeans of the House of Representatives and the Committee on Finance of the Senate on the report conducted under paragraph (1), together with suchrecommendations as he may deem advisable.

PL 101-508 Source Rule on Sales of Personal Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to the Congress on The Sales Source Rules."

Property of 1990 as it amends Sec. 1211(d). Title XII. Tax Department of the Treasury, January 1993. 33pp.

Reform Act of 1986 (PL 99-514)

01/01/1992 Online text unavailable. Letter accompanying report states: Requires evaluation of title passage rules in light of lower rates. Treasury is also directed to take

into account the trade concerns of Congress.

PL 101-508 Treatment of Certain Family Services Sec. 11831(b) Omnibus Budget Reconciliation Act Congressional Letter Response, January 1992.

Providers of 1990 as it amends Sec. 6305 (e). The

Technical and Misc. Revenue Act of 1988 (PL100-647)

01/01/1992 Online summary states:

Title VI: Other Substantive Revenue Provisions Subtitle M: Miscellaneous ProvisionsSets forth criteria to govern the employment status of dependent care services providers for employment tax purposes. Directs the Secretary of theTreasury to report to specified congressional committees on the tax status of day care providers paid under enumerated programs.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 19

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-508 Spin-off of Defined Benefit Plan Assets Sec. 11831(b) Omnibus Budget Reconciliation Act "Study on the Allocation of Excess Pension Plan Assets in

to Bridge Banks of 1990 as it amends Sec. 6067(b). The the Case of Bridge Banks." Department of the Treasury,

Technical and Misc. Revenue Act of 1988 (PL January 1992. 9pp.100-647)

01/01/1992 Online summary states:

Subtitle C: Pensions and Employee BenefitsAdds provisions to cover mergers and consolidations of plans or transfers of plan assets in connection with bridge banks. Directs the Secretary of theTreasury to study and report to specified congressional committees on appropriate methods of allocating assets under these new rules.

PL 101-508 Limiting Policyholder Dividend Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to the Congress on Property and Casualty

Deduction for Mutual P&C Companies of 1990 as it amends Sec. 1025. Title X. Tax Insurance Company Taxation." Department of the

Reform Act of 1986 (PL 99-514) Treasury, April 1991. 45pp.

01/01/1992 Online summary states:

Title X: Insurance Products and Companies - Subtitle C: Property and Casualty Insurance CompaniesRequires the Secretary to study the tax treatment of policyholder dividends by mutual property and casualty insurance companies. Directs that such study be

submitted to specified congressional committees no later than January 1, 1989. Gives the Secretary the authority to require the furnishing of such

information as may be necessary to conduct the study.

PL 101-508 Deferred Compensation under Sec. 457 Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to the Congress on The Tax Treatment of

of 1990 as it amends Sec. 6064 (d)(4) The Deferred Compensation Under Section 457." Department

Technical and Misc. Revenue Act of 1988 (PL of the Treasury, January 1992. 10pp.100-647)

01/01/1992 Online summary states:

Subtitle C: Pensions and Employee BenefitsDirects the Secretary of the Treasury to study and report to specified congressional committees on tax treatment of deferred compensation paid by Stateand local governments and tax-exempt organizations.

PL 101-508 Reform of Subchapter C Sec. 11831(b) Omnibus Budget Reconciliation Act "Report of the Department of the Treasury on Integration

of 1990 as it amends Sec. 634 Title VI. Tax of The Individual and Corporate Tax Systems: Taxing

Reform Act of 1986 (PL 99-514) Business Income Once." Department of the Treasury,

January 1992. 268pp.

01/01/1992 Online summary states:

Title VI: Corporate Provisions - Subtitle D: Recognition of Gain and Loss on Distributions of Property in LiquidationRequires the Secretary to conduct a study of provisions relating to subchapter C corporations and to report results to specified Congressional committees by

January 1, 1988.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 20

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-508 Study of Section 482- Transfer Pricing Sec. 11316 Omnibus Budget Reconciliation Act of "Report on the Application and Administration of Section

1990 482." Department of the Treasury, Internal Revenue

Service, April 1992.

03/01/1992 SEC. 11316. STUDY OF SECTION 482.

(a) GENERAL RULE- The Secretary of the Treasury or his delegate shall conduct a study of the application and administration of section 482 of the InternalRevenue Code of 1986. Such study shall include examination of--(1) the effectiveness of the amendments made by this part in increasing levels of compliance with such section 482,(2) use of advanced determination agreements with respect to issues under such section 482,(3) possible legislative or administrative changes to assist the Internal Revenue Service in increasing compliance with such section 482, and(4) coordination of the administration of such section 482 with similar provisions of foreign tax laws and with domestic nontax laws.(b) REPORT- Not later than March 1, 1992, the Secretary of the Treasury or his delegate shall submit to the Committee on Ways and Means of the House ofRepresentatives and the Committee on Finance of the Senate a report on the study conducted under subsection (a), together with such recommendations as

he may deem advisable.

PL 101-508 Study of Certain Fraternal Beneficiary Sec. 11831(b) Omnibus Budget Reconciliation Act "Report to Congress on Fraternal Benefit Societies."

Societies of 1990 as it amends Sec. 1012(c)(2). Title X. Department of the Treasury, January 1993. 81pp.

Tax Reform Act of 1986 (PL 99-514)

07/01/1992 Online text/summary unavailable. Letter accompanying report states: Requires study of the use of revenues from the insurance activities of section

501(c)(8) fraternal beneficiary societies that have gross premiums in excess of $25 MM.

PL 101-508 Report on Special Valuation Rules Sec 11602(d) Omnibus Budget Reconciliation Act

of 1990 (PL. 101-508)

12/31/1992 SEC. 11602. SPECIAL VALUATION RULES. (d) STUDY- The Secretary of the Treasury shall conduct a study of--

(1) the prevalence and types of options and agreements used to distort the valuation of property for purposes of subtitle B of the Internal Revenue Code of1986, and(2) other methods using discretionary rights to distort the value of property for such purposes.The Secretary shall, not later than December 31, 1992, report the results of such study, together with such legislative recommendations as the Secretaryconsiders necessary, to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 21

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-508 Low-Income Housing Credit Sec. 11407 Omnibus Budget Reconciliation Act

1990

01/01/1993 TITLE XI--REVENUE PROVISIONS Subtitle D--1-Year Extension of Certain Expiring Tax Provisions

SEC. 11407. LOW-INCOME HOUSING CREDIT. (b) ADDITIONAL AMENDMENTS- (10) EFFECTIVE DATES- (D) STUDY- The Inspector General of the Departmentof Housing and Urban Development and the Secretary of the Treasury shall jointly conduct a study of the effectiveness of the amendment made byparagraph (5) in carrying out the purposes of section 42 of the Internal Revenue Code of 1986. The report of such study shall be submitted not later thanJanuary 1, 1993, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

PL 101-508 Taxation of Americans Working Sec. 11833(a) Omnibus Budget Reconciliation Act "Individual Foreign-Earned Income and Foreign Tax Credit,

Overseas of 1990 as it amends Sec. 114 Economic 1996." Internal Revenue Service, SOI Bulletin, vol. 19:1,

Recovery Tax Act of 1981 (PL 97-34) as it Summer 1999. pp. 130-151amends Foreign Earned Income Act, 1978 (PL95-615) "Individual Foreign-Earned Income and Foreign Tax Credit,

1991." Internal Revenue Service, SOI Bulletin, vol. 14:2,Fall 1994. pp. 113-122."Taxation of Americans Working Overseas: TheOperation of the Foreign Earned Income Exclusion in1987." Department of the Treasury, January 1993. 29pp."Taxation of Americans Working Overseas: TheOperation of the Foreign Earned Income Exclusion in1983." Department of the Treasury, March 1989. 31pp."Taxation of Americans Working Overseas: RevenueAspects of Recent Legislative Changes and Proposals."Deapartment of the Treasury, February 1978. 78pp.

12/31/2004 Online text unavailable. Letter accompanying report states: Section 114 of the Economic Recovery Tax Act of 1981 provides that the Secretary of the

Treasury shall transmit a report to the Committee on Ways and Means of the House of Representatives and to the Committee on Finance of the Senate on the

Quintennial operation and effects of sections 911 and 912 of the Internal Revenue Code. The Omnibus Budget Reconciliation Act of 1990 amended the reporting

provisions of section 114 to require that a report be submitted for the 1993 tax year and every fifth year thereafter.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 22

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 101-073 Government Sponsored Enterprises Sec. 1404 (d) Financial Institutions Refrom, "Report of the Secretary of the Treasury on

Recovery, and Enforcement Act of 1989 Government-Sponsored Enterprises." Department of the

Treasury, April 1991. 53pp."Report of the Secretary of the Treasury onGovernment-Sponsored Enterprises." Department of theTreasury, May 1990. various pagings.

05/15/1991 TITLE XIV--TAX PROVISIONS

SEC. 1404. STUDIES OF RELATIONSHIP BETWEEN PUBLIC DEBT AND ACTIVITIES OF GOVERNMENT-SPONSORED ENTERPRISES.(a) IN GENERAL- In order to better manage the bonded indebtedness of the United States, the Secretary shall conduct 2 annual studies to assess thefinancial safety and soundness of the activities of all Government-sponsored enterprises and the impact of their operations on Federal borrowing.(d) REPORTS TO CONGRESS- The Secretary shall submit to the Congress--(1) by May 15, 1990, a report setting forth the results of the 1st annual study conducted under this section; and(2) by May 15, 1991, a report setting forth the results of the 2nd annual study conducted under this section.

PL 101-073 Federally Assisted Transactions Sec. 1403(a) Financial Institutions Reform, "Report on Tax Issues Relating to 1988/89 Federal

Recovery, and Enforcement Act of 1989 Savings and Loan Insurance Corporation Assisted

Transactions." Department of the Treasury, March 1991.18pp.

SEC. 1403. ANNUAL REPORTS ON TRANSACTIONS IN WHICH FEDERAL FINANCIAL ASSISTANCE PROVIDED.

Annually (a) IN GENERAL- The Secretary of the Treasury or his delegate shall submit to the Senate and to the Committee on Ways and Means of the House of

Representatives annual reports on--(1)(A) the transactions which occur during the year for which the report is made and with respect to which Federal financial assistance is provided;(B) the aggregate amount of Federal financial assistance provided with respect to such transactions; and(C) any tax benefits available by reason of such transactions; and(2) the aggregate amount of Federal financial assistance provided during such year, and the aggregate tax benefits utilized during such year, which areattributable to such transactions in prior years.(b) DEFINITION- For purposes of this section, the term `Federal financial assistance' means any assistance to which section 597 of the Internal RevenueCode of 1986 applies.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 23

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-647 Depreciation of Clothing Held for Rental Sec. 201 Tax Reform Act of 1986 PL 99-514, as "Report to Confress on the Depreciation of Clothing Held

amended by Sec. 6253 Technical and Misc. for Rental." Department of the Treasury, August 18, 1989.Revenue Act of 1988 54pp.

Online text unavailable. Letter accompanying report states: Section 201(a) of Public Law 99-514, the Tax Reform Act of 1986, required the Treasury toestablish an office to study the depreciation of all depreciable assets, and when appropriate, to assign or modify the existing class lives of assets. TheGeneral Explanation of the 1986 Act stated, "Initial studies are expected to concentrate on property that now has no ADR midpioint. Additionally, clothing held

for rental and scientific instruments (especially those used in connection with a computer) should be studied to determine whether a change in class life is

appropriate."

PL 100-647 Depreciation of Scientific Instruments Sec. 201 Tax Reform Act of 1986 (PL 99-514) as "Report to Congress on the Depreciation of Scientific

amended by Sec. 6253. Technical and Misc. Instruments." Department of the Treasury, March 1990.Revenue Act of 1988 52pp.

Online text unavailable. Letter accompanying report states: Section 201(a) of Public Law 99-514, the Tax Reform Act of 1986, required the Treasury toestablish an office to study the depreciation of all depreciable assets, and when appropriate, to assign or modify the existing class lives of assets. GeneralExplanation of the 1986 Act stated, "Initial studies are expected to concentrate on property that now has no ADR midpioint. Additionally, clothing held forrental and scientific instruments (especially those used in connection with a computer) should be studied to determine whether a change in class life isappropriate."

PL 100-647 Depreciation of Horses Sec. 201 Tax Reform Act of 1986 (PL 99-514) as "Report to Congress on the Depreciation of Horses."

amended by Sec. 6253. Technical and Misc. Department of the Treasury, March 1990. 40pp.Revenue Act of 1988

Online text unavailable. Letter accompanying report states: Section 201(a) of Public Law 99-514, the Tax Reform Act of 1986, required the Treasury toestablish an office to study the depreciation of all depreciable assets, and when appropriate, to assign or modify the existing class lives of assets. GeneralExplanation of the 1986 Act stated, "Initial studies are expected to concentrate on property that now has no ADR midpioint. Additionally, clothing held forrental and scientific instruments (especially those used in connection with a computer) should be studied to determine whether a change in class life isappropriate."

PL 100-647 Depreciation of Fruit and Nut Trees Sec. 201 Tax Reform Act of 1986 (PL 99-514) as "Report to Congress on the Depreciation of Fruit and Nut

amended by Sec. 6253. Technical and Misc. Trees." Department of the Treasury, March 1990. 57pp.Revenue Act of 1988

Online text unavailable. Letter accompanying report states: Section 201(a) of Public Law 99-514, the Tax Reform Act of 1986, required the Treasury toestablish an office to study the depreciation of all depreciable assets, and when appropriate, to assign or modify the existing class lives of assets. GeneralExplanation of the 1986 Act stated, "Initial studies are expected to concentrate on property that now has no ADR midpioint. Additionally, clothing held forrental and scientific instruments (especially those used in connection with a computer) should be studied to determine whether a change in class life isappropriate."
Enclosure I 

 GAO-01-301R Information on Federal Tax System 24

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-647 Definition of United States Resident Sec. 6138. The Technical and Misc. Revenue Act Congressional Letter Response, September 1991.

of 1988

05/01/1989 Online summary states:

Subtitle F: Foreign ProvisionsDirects the Secretary of the Treasury to study and report to specified congressional committees concerning determinations of U.S. resident status forFederal tax law purposes.

PL 100-647 The Taxation of Life Insurance Company Sec. 5014(b). The Technical and Misc. Revenue "Report to the Congress on the Taxation of Life Insurance

Products Act of 1988 Company Products." Department of the Treasury, March

1990. 56pp.

06/01/1989 Online summary states:

Title V: Revenue Increase Provisions Subtitle B: Insurance ProvisionsDirects the Secretary of the Treasury and the Comptroller General each to study and report to specified congressional committees concerning: (1) theeffectiveness of revised tax treatment of life insurance and annuity products in preventing the sale of such products primarily for investment purposes; and(2) the policy justification for, and practical implications of, tax treatment of the earnings on the cash surrender value of life insurance and annuity contractsin light of recent reform legislation.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 25

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-647 Domestic International Sales Sec. 506 Revenue Act of 1971 (PL 92-178) as "Foreign Sales Corporations, 1996." Internal Revenue

Corporation (DISC) / Foreign Sales amended by Sec. 804, Deficit Reduction Act of Service, SOI Bulletin, Vol. 19:4, Spring 2000. pp. 87-122.

1984 (PL 98-369), as amended by Sec.6252(b)(2) Technical and Misc. Revenue Act of "The Operation and Effect of the Foreign Sales1988 (PL 100-647) Corporation Legislation: July 1, 1992 to June 30, 1993",

Department of the Treasury, November 1997. 31pp."The Operation and Effect of the Foreign SalesCorporation Legislation: January 1, 1985 to June 30,1988", Department of the Treasury, January 1993. 35pp.“The Operation and Effect of the Domestic InternationalSales Corporation Legislation, July 1, 1981 to June 30,1983.” Department of the Treasury, February 1988. 36pp.“The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1981.” Department of theTreasury, July 1983. 39pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1980 Annual Report."Department of the Treasury, December 1982. 38pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1979 Annual Report."Department of the Treasury, April 1981. 40pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1978 Annual Report."Department of the Treasury, April 1980. 53pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1977 Annual Report."Department of the Treasury, April 1979. 55pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1976 Annual Report."Department of the Treasury, April 1978. 58pp."The Operation and Effect of the Domestic International
Enclosure I 

 GAO-01-301R Information on Federal Tax System 26

Sales Corporation Legislation: 1975 Annual Report."Department of the Treasury, April 1977. 51pp.

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI Publications

Corporations (FSC) "The Operation and Effect of the Domestic International

Sales Corporation Legislation: 1974 Annual Report."Department of the Treasury, April 1976. 37pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1973 Annual Report."Department of the Treasury, April 1975. 30pp."The Operation and Effect of the Domestic InternationalSales Corporation Legislation: 1972 Annual Report."Department of the Treasury, April 1974. 20pp.

Online summary states:Subtitle K: Other Administrative Provisions

Quadrennial Amends the Tax Reform Act of 1984 to require reporting concerning possessions corporations and foreign sales corporations every four years rather thanbeginning annually.12/31/90
Enclosure I 

 GAO-01-301R Information on Federal Tax System 27

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-647 Possessions Corporation Sec. 441. Deficit Reduction Act of 1984 (PL "U.S. Possessions Corporations, 1995." Internal Revenue

98-369) as it amends W&M and Senate Finance Service, SOI Bulletin, vol. 19:1, Summer 1999. pp.Reports on Tax Reform Act of 1976 (PL 94-55), 168-184.as amended by Sec. 6252(b) of Technical andMisc. Revenue Act of 1988 (PL 100-647) "U.S. Possessions Corporations, 1993." Internal Revenue

Service, SOI Bulletin, vol. 17:2, Fall 1997. pp. 144-157."U.S. Possessions Corporations, 1989." Internal RevenueService, SOI Bulletin, vol. 12:2, Fall 1992. pp. 97-103."U.S. Possessions Corporations, 1987." Internal RevenueService, SOI Bulletin, vol. 11:1, Summer 1991. pp. 51-60."The Operation and Effect of the Possessions Corporation

System of Taxation: Sixth Report (1983)." Department ofthe Treasury, March 1989. 109pp.

"The Operation and Effect of the Possessions Corporation

System of Taxation: Fifth Report (1982)." Department of

the Treasury, July 1985. 107pp."The Operation and Effect of the Possessions Corporation

System of Taxation: Fourth Report (1979-1980)."

Department of the Treasury, February 1983. 163pp."The Operation and Effect of the Possessions Corporation

System of Taxation: Third Report (1978)." Department ofthe Treasury, June 1980. 140pp.

"The Operation and Effect of the Possessions Corporation

System of Taxation: Second Report (1977)." Departmentof the Treasury, June 1979.

"The Operation and Effect of the Possessions Corporation

System of Taxation: First Report (1976)." Department of

the Treasury, June 1978. 90pp.

12/31/2001 Online summary states:

Subtitle K: Other Administrative Provisions

Quadrennial Amends the Tax Reform Act of 1984 to require reporting concerning possessions corporations and foreign sales corporations every four years rather than

annually.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 28

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-360 Financing Health and Long-Term Care Requested by President 2/11/87 and Sec. 113. "Financing Health and Long-term Care: Report to the

The Medicare Catastrophic Coverage Act of 1988 President and to the Congress." Department of the

Treasury, March 1990. 120pp.

11/30/1988 Online summary states:

Title I: Provisions Relating to Part A of Medicare Program and Supplemental Medicare Premium- Subtitle B: Supplemental Medicare PremiumDirects the Secretary of the Treasury to conduct a study and report to the Congress by November 30, 1988, on Federal tax policies to promote privatefinancing of long-term care.

PL 100-203 Insurance Syndicate Study Sec. 10244, Title X, HR 3545, Omnibus Budget "Report to Congress on the Taxation of Income Earned by

Reconciliation Act of 1987 Members of Insurance or Reinsurance Syndicates."

Department of the Treasury, February 1989. 62pp.

04/01/1988 Online summary states:

Title X: Revenue Provisions - Subtitle B: Business Provisions - Part V: Insurance Provisions - Directs the Secretary of the Treasury to: (1) study the properFederal income tax treament of income earned by members of insurance or reinsurance syndicates and report findings to specified congressionalcommittees by April 1, 1988; and (2) renegotiate by January 1, 1990, a specified closing agreement with underwriters participating in certain insurance orreinsurance syndicates.

PL 100-203 Widely Held Partnerships: Compliance Sec. 10215. Title X. Omnibus Budget "Widely Held Partnerships: Compliance and Administration

and Administration Issues Reconciliation Act of 1987 Issues." Department of the Treasury, March 1990. 85pp.

plus Appendices.

01/01/1989 Online summary states: Title X: Revenue Provisions

Subtitle B: Business Provisions Part II: Partnership ProvisionsDirects the Secretary of the Treasury to study and report to specified congressional committees by January 1, 1989, (with an interim report due May 1, 1988)

on: (1) the issue of treating publicly traded limited partnerships and other corporation-like partnerships as corporations for income tax purposes, including

the issues of disincorporation and opportunities for avoidance of the corporate tax; and (2) administrative and compliance issues related to the tax treatmentof publicly traded partnerships and other large partnerships.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 29

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 100-203 Effect of Tax Refund Offset Program on Sec. 9402(c). Title IX, Omnibus Bdget "Refund Offset Program Benefits Appear to Exceed

Voluntary Compliance Reconciliation Act of 1987 Costs: Report to Congressional Requesters." General

Accounting Office, May 1991. 47pp. GAO/GGD-91-64

04/01/1989 Online summary states:

Title IX: Income Security and Related Programs - Subtitle E: Miscellaneous Provisions - Amends the Deficit Reduction Act of 1984 to extend through June 30,1988, provisions under which overpayments of Federal taxes may be used to offset non-tax debts owed to Federal agencies. (Currently, such offsets arepermitted with respect to refunds payable before 1988.)Expresses the intent of the Congress that, to the extent practivable, the amendments made by the Deficit Reduction Act of 1984 with respect to the collection

of non-tax debts owed to Federal agencies shall extend to all Federal agencies. Directs the Secretary of the Treasury to issue regulations to carry out the

purposes of this paragraph.Directs the Comptroller General to study the operation and effectiveness of these provisions and to report findings to specified congressional committees nolater than April 1, 1989.

PL 100-203 Tax Gap Sec. 10622 Revenue Act of 1987 "Income tax compliance research: net tax gap estimates."

Department of the Treasury, Internal Revenue Service,

April 1990." 18pp.

04/15/1989 Online summary states: Title X: Revenue Provisions Subtitle F: Other Revenue Provisions Part III: Compliance SEC. 10622 Requires the IRS: (1) to issue a

report by April 15, 1989, on the extent of the tax gap and possible measures to decrease it; and (2) to report annually on the improvements being made in theaudit rate, taxpayer assistance, and enforcement efforts.

PL 100-202 Installment Sales Income Study Sec. 105, Title I. The Treasury, Postal Service, Congressional Letter Response, August 1988.

and General Appropriations Act (1988) (Sec.101(m), HJ Res 395)

08/15/1988 Online text unavailable. Study of economic impact and admnistrative complexity of IRC Sec. 453C (Installment Method), including effect on fiscal year

taxpayers; recommending revenue neutral alternative to the method

PL 099-514 Report on Evasion of the Federal Title XVII, Tax Reform Act of 1986 "Report to the Congress on Evasion of the Federal

Gasoline Excise Tax Gasoline Excise Tax." U.S. Department of the Treasury,

Office of Tax Policy, December 1987. 20pp.

12/31/1986 Online text unavailable. Letter accompanying report states: Section 1703(g) of Public Law 99-514, the Tax Reform Act of 1986, provides that the Secretary

of the Treasury "shall conduct a study of incidence of evasion of the gasoline tax."
Enclosure I 

 GAO-01-301R Information on Federal Tax System 30

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 099-514 Report on Return-free Tax System Title XV, Tax Reform Act of 1986 "Current Feasibility of a Return-Free Tax System."

Department of the Treasury, Internal Revenue Service,October 1987. 57 pp.

04/07/1987 Online summary states: Title XV: Compliance and Tax Administration - Subtitle H: Miscellaneous Provisions - Requires the Secretary to report to the Congress

on a return-free system for the Federal income tax of individuals.

PL 099-514 Effect on U.S. Reinsurance Corporations Sec. 1244, Title XII. Tax Reform Act of 1986 "Report to Congress on the Effect on U.S. Reinsurance

of the Waiver by Treaty of the Excise Tax Corporations of the Waiver by Treaty of the Excise Tax on

on Certain Reinsurance Premiums Certain Reinsurance Premiums." Department of the

Treasury, March 1990. 24pp.

12/31/1987 Online summary states:

Title XII: Foreign Tax Provisions - Subtitle E: Treatment of Foreign Taxpayers Requires the Secretary of the Treasury to conduct a study to determine whether

U.S. reinsurance corporations are placed at a significant competitive disadvantage with foreign reinsurance corporations by existing treaties between the

United States and foreign countries.

PL 099-514 Worthlessness of Bad Debts Tax Reform Act of 1986. Conference Report "Report to the Congress on the Tax Treatment of Bad

99-841. P. 11-316 Debts by Financial Institutions." Department of the

Treasury, September 1991. 48pp.

07/15/1991 No statutory requirement. Letter accompanying report directed: the Treasury Department to study and report on the appropriate criteria to be used in

determining whether a debt is worthless for Federal income tax purposes, and specifically to consider the circumstances under which it would beappropriate to provide a conclusive or rebuttable presumption of worthlessness.

PL 099-509 Telephone Excise Tax Exemptions Sec. 8061, Omnibus Budget Reconciliation Act of "Report to Congress on Communication Services Not

1986 Subject to Federal Excise Tax." Department of the

Treasury, August 1987. 31pp.

06/30/1987 Online summary states: Title VIII: Revenues, Trade, and Related Programs - Subtitle A: Revenue Provisions - Part VII: Study of Communication Services Not

Subject to Federal Excise Tax - Requires the Secretary of the Treasury to conduct a study of communication services not subject to Federal excise tax.Requires the Secretary to submit a report of such study to specified committees of the Congress not later than June 30, 1987.Secretary of the Treasury, in consultation with the Secretary of Commerce and the Chairman of the Federal Communications Commission, “shall conduct astudy of communication services which are exempt from the tax imposed by section 4251 of the Internal Revenue Code of 1954 by reason of being a privatecommunication service (as defined in section 4252(d) of such Code) or by reason of a specific exemption from such tax under section 4253 of such Code.”
Enclosure I 

 GAO-01-301R Information on Federal Tax System 31

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 099-499 Tax on Certain Imported Substances Sec. 515(d) Superfund Revenue Act of 1986

under Secs. 4671 and 4661(e)(2)(A)(ii)(II)

of the Internal Revenue Code

01/01/1988 SEC. 515. (d) STUDY.

(1) In general. The Secretary of the Treasury or his delegate shall conduct a study of issues relating to the implementation of(A) the tax imposed by the section 4671 of the Internal Revenue Code of 1986 (as added by this section), and(B) the credit for exports of taxable substances under section 4661(e)(2)(A)(ii)(II) of such Code.In conducting such study, the Secretary of the Treasury or his delegate shall consult with the Environmental Protection Agency and the International Trade

Commission.(2) Report. The report of the study under paragraph (1) shall be submitted not later than January 1, 1988, to the Committee on Ways and Means of the House

of Representatives and the Committee on Finance of the Senate."

PL 098-369 Gross Income Tax Sec. 1081, Deficit Reduction Act of 1984 "Report to Congress on an Economic Analysis of Gross

Income Taxes." Department of the Treasury, Office of the

Secretary, Office of Tax Analysis, November 1986.

The Secretary of the Treasury or his delegate shall conduct a study of, and submit to the House Ways and Means Committee and the Senate FinanceCommittee, a report on " a simplified income tax based on gross income."

PL 098-369 Taxicab Fuel Sec. 935 Deficit Reduction Act of 1984 (PL “A Report to the Congress on the Reduced Rate of Fuels

98-369) as it amends Sec. 511(e)(4) of Surface Taxes for Taxicabs.” Department of the Treasury, JuneTransportation Assistance Act of 1982 (PL 1988. 7pp.

01/01/1985 Title IX: Highway Revenue Provisions - Subtitle D: Studies - Requires the Secretary of the Treasury to conduct a study of the reduced rate of fuel taxes

provided for taxicabs. Requires such study to be submitted to the Congress no later than January 1, 1985.

PL 098-369 Weight-Distance Taxes Deficit Reduction Act of 1984 (PL 98-369)10/01/1987 Online summary states: Title IX: Highway Revenue Provisions - Subtitle D: Studies - Requires the Secretary of Transportation, in consultation with the

Secretary of the Treasury, to conduct a study (3) to evaluate the feasibility and ability of weight-distance truck taxes to provide the greatest degree of equity

among highway users, to ease the costs of compliance of such taxes, and to improve the efficiency by which such taxes might be administered. Requires

the Secretary of Transportation to submit a report on each study to specified committees of Congress not later than October 1, 1987.

PL 098-369 Trans-Border Trucking Sec. 932 and 934 Deficit Reduction Act of 1984

10/01/1987 Online summary states: Title IX: Highway Revenue Provisions - Subtitle D: Studies - Requires the Secretary of Transportation, in consultation with the

Secretary of the Treasury, to conduct a study to determine the significance of the excise tax on highway motor vehicles on trans-border trucking operations
Enclosure I 

 GAO-01-301R Information on Federal Tax System 32

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 098-369 Heavy Vehicle Cost Responsibility Study Sec. 931 and 934, Deficit Reduction Act of 1984

10/01/1987 Online summary states: Title IX: Highway Revenue Provisions - Subtitle D: Studies - Requires the Secretary of Transportation, in consultation with the

Secretary of the Treasury, to conduct a study: (1) of whether highway motor vehicles with taxable gross weights of 80,000 pounds or more bear aproportionate share of the cost of the highway system;

PL 098-369 Final Report of Life Insurance Company Sec. 231(b)(3). Deficit Reduction Act of 1984 "Final Report to the Congress on Life Insurance Company

Taxation Taxation." Department of the Treasury, August 11, 1989.

56pp."Interim Report to the Congress on Life InsuranceCompany Taxation." Department of the Treasury, June1988. 93pp.

01/01/1989 Online summary states:

Title II: Life Insurance Provisions - Subtitle C: Studies - Requires the Secretary to make annual reports in the years 1986, 1987, 1988, and 1989 concerningthe impact of this Act on specified segments and products of the life insurance industry.

PL 098-369 Private Foundation Grant-Making Deficit Reduction Act of 1984, Conference Report

Expenses 98-861, p. 1087

01/01/1990 No statutory requirement
Enclosure I 

 GAO-01-301R Information on Federal Tax System 33

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 098-369 International Boycott Provision Sec. 1067 Tax Reform Act of 1976 (PL 94-455) "The Operation and Effect of the International Boycott

as amended by Sec. 411 Deficit Reduction Act of Provisions of the Internal Revenue Code: Seventh Report."1984 (PL 98-369) Department of the Treasury, Internal Revenue Service,

August 1997. 33pp. Document 10032, Catalog #24442Q."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: Sixth Report."Internal Revenue Service, December 1993."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: Fifth Report."Department of the Treasury, February 1991. 38pp."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: Fourth Report."Department of the Treasury, 1985. 32pp."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: Third AnnualReport (1978)." Department of the Treasury, May 1982.20pp."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: Second AnnualReport (1977)." Department of the Treasury, December1980. 20pp."The Operation and Effect of the International BoycottProvisions of the Internal Revenue Code: First AnnualReport (1976)." Department of the Treasury, March 1979.

20pp.

12/31/1993 Title IV: Tax Simplification Subtitle D: Miscellaneous Treasury Administrative Provisions - Requires the submission of the international boycott report every

four years.

4-year cycle
Enclosure I 

 GAO-01-301R Information on Federal Tax System 34

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 098-021 Taxation of Social Security and Railroad Sec. 121 1983 Social Security Act (PL 98-21) p. "Report on the Taxation of Social Security and Railroad

Retirement Benefits 97 Stat. 84 Retirement Benefits in Calendar Years 1994, 1995, and

1996." Department of the Treasury, January 2001. 30pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1993." Departmentof the Treasury, July 1998. 15+pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1992." Departmentof the Treasury, January 1997. 22pp."Report on the Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1991." Departmentof the Treasury, September 1994. 16pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1990." Departmentof the Treasury, January 1993. 15pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1989." Departmentof the Treasury, March 1992. 15pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Years 1987 and 1988."Department of the Treasury, March 1991. 35pp."Report on The Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1986." Departmentof the Treasury, February 1989. 15pp."Report on the Taxation of Social Security and RailroadRetirement Benefits in Calendar Year 1985." Departmentfo the Treasury, July 1987. 10pp.

Online summary states:Title I: Provisions Affecting the Financing of the Social Security System - Part C: Revenue Provisions - Appropriates to the Federal Old-Age and Survivors

Annual Insurance Trust Fund and to the Federal Disability Insurance Trust Fund the revenues generated under this title. Requires that such appropriations be

transferred at least quarterly from the Treasury to the trust funds. Requires the Secretary of the Treasury to report to Congress, the Secretary of Health and

Human Services, and the Railroad Retirement Board on such transfers.
Enclosure I 

 GAO-01-301R Information on Federal Tax System 35

DRAFT as of Wednesday, March 21, 2001

Public Law #Topic Congressional Requirement Study Citations and RecentDate Due Mandate Text Related SOI PublicationsPL 097-248 Tip Compliance Sec. 314 (c) HR 4961 Tax Equity and Fiscal "Tip Income Study." Department of the Treasury, Internal

Responsibility Act of 1982 Revenue Service, December 1990. 48pp

01/01/1987 Online text unavailablePL 097-034 Americans Working Abroad Sec. 208. Foreign Earned Income Act of 1978 (PL

95-615) as amended by Sec. 114 Economic

Recovery Tax Act of 1981 (PL 97-34) and OBRA,1990, Sec. 11833

12/31/1994 Online summary states:

Title I: Individual Income Tax Provisions - Subtitle B: Income Earned Abroad - Amends the Foreign Earned Income Act of 1978 to revise reporting requirementsto require the Secretary and certain Federal Government agencies to report to specified congressional committees on the operation and effects of theforeign earned income exclusion quadrennially beginning after the enactment of this Act.

PL 096-451 Motorboat Fuel Excise Tax Sec. 204 National Recreational Boating Safety "Report to Congress on the Gasoline Excise Tax

Improvement Act of 1980 Revenues Attributable to Fuel Used in Recreational

Motorboats." Department of the Treasury, Office of TaxAnalysis, 1986. 33pp.

10/14/1982 Online summary states: Title II: Establishment of Fund SEC. 204 Directs the Secretary of the Treasury (after consultation with the Secretary of the

department in which the Coast Guard is operating) to conduct a study to determine the portion of motorboat fuel taxes attributable to fuel used in recreationalmotorboats and to report such findings to Congress within two years of the enactment of this Act.

PL 096-223 Windfall Profits Tax Sec. 102(e), Crude Oil Windfall Profit Tax Act of Congressional Letter Response (1986), August 1988.

1980

Congressional Letter Response (1984, 1985), December1986.

The Secretary of the Treasury will report annually to Congress, beginning in fiscal year 1982, on the net revenue derived from the windfall profit tax for thepreceding fiscal year and the actual disposition of these revenues.

AnnualPL 095-600 Targeted Jobs Tax Credit Sec. 554 Revenue Act of 1978 “The Use of Tax Subsidies for Employment. A Report to

Congress by the Departments of Labor and Treasury.”Department of the Treasury, May 1986. 119pp.

Secretary of the Treasury and the Secretary of Labor jointly submit a report on the Targeted Jobs Tax Credit.
Enclosure I 

36 GAO-01-301R Information on Federal Tax System 

Question 4: How much taxpayer guidance did IRS’ Office of Chief Counsel provide in 

1990-99, including guidance provided in 

• IRS’ Cumulative Bulletin, 

• Actions on Decisions (AODs), 

• Private Letter Rulings (PLRs), 

• Technical Advice Memoranda (TAMs), 

• Field Service Advice (FSAs), 

• Office Memoranda (OMs), and 

• General Counsel Memoranda (GCMs)? 

The Internal Revenue Cumulative Bulletin is an annual compilation of items from the weekly 

Internal Revenue Bulletins. The Cumulative Bulletins we reviewed contained 21 different 

categories of information. Table I.2 shows the number of issues for each type of guidance in 

calendar years 1990-98, the most recent Cumulative Bulletin available at the time we did our 

work. 

Table I.2: Amount of IRS Guidance Published in Cumulative Bulletins, Calendar Years 1990-98 

Type of guidance 1990 1991 1992 1993 1994 1995 1996 1997 1998 Total 

Revenue Rulings 112 70 112 94 82 85 65 57 62 739 

Revenue Procedures 67 74 108 53 81 58 66 61 65 633 

Notices 75 44 61 60 103 67 68 77 67 622 

Treasury Decisions 47 54 74 49 72 58 58 52 50 514 

Proposed Regulations 48 83 67 57 53 49 49 46 53 505 

Announcements 114 114 

Delegation Orders 8 9 13 6 10 2 5 3 56 

Tax Conventions 10 7 1 1 1 4 1 1 26 

Railroad Retirement Quarterly 

Rates 

2 2 2 3 3 3 2 2 2 21 

Public Laws 4 3 7 1 1 2 2 20 

Court Decisions 4 3 4 3 2 3 19 

Social Security Contribution & 

Benefit Base 

1 1 1 1 1 1 1 1 8 

Summaries of Disciplinary 

Actionsa

 31 4 

Treasury Directives 1 2 3 

Treasury Orders 1 1 1 3 

Statement of Procedural Rules 1 1 2 

Committee Reports (Conference) 1 1 2 

Executive Orders 1 1 

Bank Secrecy Act Regulations 1 1 

Committee Reports (House) 1 1 

Social Security Coverage 

Threshold 

 1 1 

Total 378 357 450 329 408 330 321 305 417 3295 

a

According to IRS officials, these are summaries of public hearings held to decide whether tax practitioners should 

be disciplined for mishandling taxpayer accounts 

Source: GAO analysis of IRS Cumulative Bulletins. 
Enclosure I 

37 GAO-01-301R Information on Federal Tax System 

Table I.3 shows IRS data for calendar years 1990-99 on selected types of guidance not included 

in IRS Cumulative Bulletins, as agreed with JCT staff. 

Table I.3: Number of Issuances for Selected Types of Guidance, Calendar Years 1990-99 

Amount of guidance issued 

Year AODs PLRs TAMs FSAs OMs GCMs 

1999 a 2060 115 423 0 0 

1998 7 2222 119 258 0 0 

1997 7 2052 149 292 0 0 

1996 10 2022 154 220 1 2 

1995 10 2036 153 300 0 2 

1994 7 2068 161 397 0 2 

1993 7 2211 173 491 1 1 

1992 5 2273 253 399 4 14 

1991 7 2586 201 150 8 33 

1990 20 3456 124 195 25 30 

Total 80 22986 1602 3125 39 84 

a

Data not available. 

Source: IRS Office of Chief Counsel data.

Question 5: How many words and pages are contained in the most recent set of 

regulations? 

IRS Regulations contained 8,551,444 words and 19,653 pages as of June 2000. We defined a word 

as any string of characters or digits separated from others by a space. We used an electronic 

version of the regulations published by Tax Analysts, which did not include page numbers. Our 

page count was derived by converting the Tax Analysts version into Microsoft Word format, 

with a font setting of 10. 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 38

IRS Forms, Schedules, Publications, and Worksheets

Question 6: What IRS forms and schedules existed in 1999? Provide a list broken down by IRS’ four divisions and including the number of lines for each form or schedule and the length of the instructions (by number of pages) for each form or schedule. Also, list all IRS publications, including the number of pages for each publication in 1999. The complexity of the tax system is to some degree reflected in the number of IRS tax forms, schedules, instructions, publications, and the pages or lines they contain. However, these numbers are not necessarily indicative of the compliance burden on a particular taxpayer. For example, certain forms, such as form 1040EZ, add to the total numbers but are intended to simplify compliance for some taxpayers. IRS tax forms are not arranged in a consistent manner throughout. Thus, it was not possible to develop a consistent procedure for determining the number of lines requesting information from taxpayers on each form. However, most forms are broken out into distinct sections that are often labeled "Part" or "Schedule." The sections are normally followed by a series of numbers or letters that designate each piece of information requested on the form. In turn, the letters or numbers may have a subcategory of letters or numbers where information is requested, and so on. In effect, the letters or numbers create "levels" of information. We only counted only down to the second level of requested information. For instance, if a form had part I with a line 3, line 3a and line 3a(1), we only counted the lines marked 3 or 3a. Some forms contained no parts, schedules, letters, or numbers and asked for only few pieces of information from taxpayers. In these cases, we determined and counted the distinct types information requested. We did not count (1) identifier types of information, such as name, address, and social security number, or (2) the signature block on each form unless the form was a request for a signature. Table II.1 provides a list of 649 IRS forms with associated instructions and schedules for the tax year 1999. Foreign language forms have been omitted. The table also includes information on the number of pages in separately published instructions, the number of lines per form (about 16,100 in total), whether instructions are included in forms and schedules rather than published separately, and the IRS divisions to which the forms or schedules apply. We did not attempt to count the number of pages of instructions included in forms and schedules because they were 

often interspersed throughout the documents. 

Table II.1 Tax Year 1999 Forms, Instructions, and Schedules IRS Division: Wage & Investment (WI), Small Business (SB), Large Business (LB), Tax Exempt/ Government Entity (TE) No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

1 Form CT-1 Employer's Annual Railroad Retirement Tax Return 21 SB,TE 2 Instr CT-1 Instructions 6 3 Form CT-2 Employee Representative's Quarterly Railroad Tax Return 6 X WI 4 Form SS-4 Application for Employer Identification Number 22 X WI,SB,LB,TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 39

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

5 Form SS-8 Determination of Employee Work Status for Purposes of 

Federal Employment Taxes and Income Tax Withholding 

64 WI,SB,LB,TE 

6 Form SS-16 Certificate of Election of Coverage 1 X TE 7 Form T (Timber) Forest Activities Schedules 104 X WI,SB,LB 8 Form W-2 Wage and Tax Statement 27 WI,SB,LB,TE 9 Instr W-2 Instructions 12 10 Instr W-2 and W-3 Instructions 12 11 Form W-2C Corrected Wage and Tax Statement 26 X WI,SB,LB,TE 12 Instr W-2c and W-3c Instructions 4 13 Form W-2G Certain Gambling Winnings 14 WI,SB,LB,TE 14 Instr W-2G & 5754 Instructions 4 15 Form W-3 Transmittal of Income and Tax Statements 24 WI,SB,LB,TE 16 Form W-3C Transmittal of Corrected Income and Tax Statements 32 WI,SB,LB,TE 17 Form W-3SS Transmittal of Wage and Tax Statements 24 X WI,SB,LB,TE 18 Form W-4 Employee's Withholding Allowance Certificate 37 X WI 19 Form W-4P Withholding Certificate for Pension or Annuity Payments 29 X WI 20 Form W-4S Request for Federal Income Tax Withholding from Sick Pay 12 X WI 21 Form W-4V Voluntary Withholding Request 7 X WI 22 Form W-5 Earned Income Credit Advance Payment Certificate 5 X WI 23 Form W-7 Application for IRS Individual Taxpayer Identification Number 6 X WI 24 Form W-7A Application for Taxpayer Identification Number for Pending U.S. 

Adoptions 

5 X WI 

25 Form W-7P Application for Preparer Tax Identification Number 3 X a 26 Form W-8 Certificate of Foreign Status 2 X WI,SB,LB,TE 27 Instr W-8 Instructions for the Requester of forms W-8BEN, W-8ECI, W8EXP, W-8IMY 5 WI,SB,LB,TE 28 Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United 

States Tax Withholding 

15 a 

29 Instr W-8BEN Instructions 5 30 Form W-8ECI Certificate of Foreign Person's Claim for Exemption From 

Withholding on Income Effectively Connected With the Conduct of a Trade or Business in the US 

9 a 

31 Instr W-8ECI Instructions 5 32 Form W-8EXP Certificate of Foreign Government or Other Foreign 

Organization for United States Tax Withholding 

15 a 

33 Instr W-8EXP Instructions 5 34 Form W-8IMY Certificate of Foreign Intermediary, Foreign Partnership, or 23 a 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 40

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

Certain U.S. Branches for United States Tax Withholding 

35 Instr W-8IMY Instructions 36 Form W-9 Request for Taxpayer Identification Number and Certification 3 WI,SB,LB,TE 37 Instr W-9 Instructions 2 38 Form W-9S Request for Student's or Borrower's Social Security Number 

and Certification 

3 X WI 

39 Form W-10 Dependent Care Provider's Identification and Certification 2 X WI,SB,LB 40 Form 11C Occupational Tax and Registration Return for Wagering 9 X WI,SB,LB,TE 41 Form 23 Application for Enrollment to Practice Before the Internal 

Revenue Service 

30 a 

42 Form 56 Notice Concerning Fiduciary Relationship 17 X WI,SB,LB,TE 43 Form 56F Notice Concerning Fiduciary Relationship of Financial 

Institution 

29 X TE 

44 Form TD F 90-22.1 Report of Foreign Bank and Financial Accounts 37 X a 45 Form TD F 90-22.47 Suspicious Activity Report 71 X a 46 Form TD F 90-22.53 Designation of Exempt Person 25 X a 47 Form 433-A Collection Information for Individuals 77 a 48 Form 433-B Collection Information for Business 48 a 49 Form 637 Application for Registration (For Certain Excise Tax Activities) 81 X WI,SB,LB,TE 50 Form 656 Offer in Compromise 10 X a 51 Form 656-A Additional Basis for Compromise 1 X a 52 Form 673 Statement for Claiming Benefits Provided by Section 911 of the 

Internal Revenue Code 

3 X a 

53 Form 706 United States Estate (and Generation-Skipping Transfer) Tax 

Return 

118 WI 

54 Instr 706 Instructions 26 55 Form 706A United States Additional Estate Tax Return 44 WI 56 Instr 706A Instructions 4 57 Form 706CE Certification of Payment of Foreign Death Tax 9 X TE 58 Form 706GS(D) Generation-Skipping Transfer Tax Return for Distributions 20 WI 59 Instr 706GS(D) Instructions 3 60 Form 706GS(D-1) Notification of Distribution From a Generation-Skipping Trust 14 SB 61 Instr 706GS(D-1) Instructions 5 62 Form 706GS(T) Generation-Skipping Transfer Tax Return for Terminations 17 SB 63 Instr 706GS(T) Instructions 6 64 Form 706NA United States Estate (and Generation-Skipping Transfer) Tax 

Return 

71 WI 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 41

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

65 Instr 706NA Instructions 4 66 Form 706QDT United States Estate Tax Return for Qualified Domestic Trusts 83 SB 67 Instr 706QDT Instructions 4 68 Form 709 United States Gift (and Generation-Skipping Transfer) Tax 

Return 

98 WI 

69 Instr 709 Instructions 8 70 Form 709A United States Short Form Gift Tax Return 14 X WI 71 Form 712 Life Insurance Statement 65 X SB,TE 72 Form 720 Quarterly Federal Excise Tax Return 135 WI,SB,LB 73 Instr 720 Instructions 12 74 Sched 720 (Sched C) Supporting Statements for Adjustments and Claims 35 a 75 Form 730 Tax on Wagering 8 X WI,SB,LB,TE 76 Form 843 Claim for Refund and Request for Abatement 7 WI,SB,LB 77 Instr 843 Instructions 2 78 Form 907 Agreement to Extend the Time to Bring Suit 1 X a 79 Form 926 Return by a U.S. Transferor of Property to a Foreign 

Corporation 

17 WI,SB,LB,TE 

80 Instr 926 Instructions 2 81 Form 928 Fuel Bond 3 X a 82 Form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return 28 WI,SB,LB,TE 83 Instr 940 Instructions 6 84 Form 940 EZ Employer's Annual Federal Unemployment (FUTA) Tax Return 16 WI,SB,LB,TE 85 Instr 940 EZ Instructions 5 86 Form 941 Employer's Quarterly Federal Tax Return 24 WI,SB,LB,TE 87 Instr 941 Instructions 4 88 Sched 941 (Sched B) Employer's Record of Federal Tax Liability 3 X WI,LB,TE 89 Form 941C Supporting Statement to Correct Information 25 X WI,SB,LB,TE 90 Form 941M Employer's Monthly Federal Tax Return 22 X WI,SB,LB,TE 91 Form 941SS Employer's Quarterly Federal Tax Return 17 X WI,SB,LB,TE 92 Form 943 Employer's Annual Tax Return for Agricultural Employees 15 WI,SB,LB,TE 93 Instr 943 Instructions 3 94 Form 943A Agricultural Employer's Record of Federal Tax Liability 13 X WI,SB,LB,TE 95 Form 945 Annual Return of Withheld Federal Income Tax 20 WI,SB,LB,TE 96 Instr 945 Instructions 4 97 Form 945A Annual Record of Federal Tax Liability 13 X WI,SB,LB,TE 98 Form 952 Consent to Extend Period of Limitation on Assessment of 1 X SB,TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 42

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

Income Taxes 

99 Form 966 Corporate Dissolution or Liquidation 15 X SB,LB 100 Form 970 Application to Use Lifo Inventory Method 20 X WI,SB,LB,TE 101 Form 972 Consent of Shareholder to Include Specific Amount in Gross 

Income 

4 X WI,SB,LB,TE 

102 Form 973 Corporation Claim for Deduction for Consent Dividends 4 X SB,LB 103 Form 976 Claim for Deficiency Dividends Deductions by a Personal 

Holding Company, Regulated Investment Company, or Real Estate Investment Trust 

17 X SB,LB 

104 Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness 

(and Section 1082 Basis Adjustment) 

19 X WI,SB,LB 

105 Form 990 Return of Organization Exempt from Income Tax 207 TE 106 Instr 990, 990EZ Instructions 40 107 Sched 990 (Sched A) Organization Exempt Under Section 501(c)(3) 146 TE 108 Instr 990 (Sched A) Instructions 8 109 Form 990BL Information and Initial Excise Tax Return for Black Lung 

Benefit Trusts and Certain Related Persons 

55 TE 

110 Instr 990BL Instructions 4 111 Form 990C Farmers' Cooperative Association Income Tax Return 202 SB,LB,TE 112 Instr 990C Instructions 16 113 Form 990EZ Short Form Return of Organization Exempt from Income Tax 72 TE 114 Form 990PF Return of Private Foundation or Section 4947(a)(1) Nonexempt 

Charitable Trust Treated as a Private Foundation 

293 TE 

115 Instr 990PF Instructions 28 116 Form 990T Exempt Organization Business Income Tax Return (and proxy 

tax under section 6033(e)) 

134 SB,LB,TE 

117 Instr 990T Instructions 19 118 Form 990W Estimated Tax on Unrelated Business Taxable Income for TaxExempt Organizations 72 X SB,LB,TE 119 Form 1000 Ownership Certificate 2 WI,SB,LB,TE 120 Form 1001 Ownership, Exemption, or Reduced Rate Certificate 20 X WI,SB,LB,TE 121 Form 1028 Application for Recognition of Exemption Under Section 521 of 

the Internal Revenue Code 

98 SB,LB,TE 

122 Instr 1028 Instructions 2 123 Form 1040 U.S. Individual Income Tax Return 79 WI, SB 124 Instr 1040 Instructions 72 125 Instr 1040 (Tax Tables) Instructions 13 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 43

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

126 Instr 1040 General Instructions 59 127 Sched 1040 (Sched 

A&B) 

Itemized Deductions and Interest & Dividend Income 37 WI, SB 

128 Instr 1040 (Sched 

A&B) 

Instructions 13 

129 Sched 1040 (Sched C) Profit or Loss from Business (Sole Proprietorship) 69 WI, SB 130 Instr 1040 (Sched C) Instructions 9 131 Sched 1040 (Sched C 

EZ) 

Net Profit from Business (Sole Proprietorship) 26 WI, SB 

132 Sched 1040 (Sched D) Capital Gains and Losses 65 WI, SB 133 Instr 1040 (Sched D) Instructions 7 134 Sched 1040 (Sched D-1) Continuation Sheet for Schedule D (Form 1040) 14 WI, SB 135 Sched 1040 (Sched E) Supplemental Income and Loss 63 WI, SB 136 Instr 1040 (Sched E) Instructions 6 137 Sched 1040 (Sched EIC) Earned Income Credit 7 X WI, SB 138 Sched 1040 (Sched F) Profit or Loss From Farming 74 WI, SB 139 Instr 1040 (Sched F) Instructions 7 140 Sched 1040 (Sched H) Household Employment Taxes 40 WI, SB 141 Instr 1040 (Sched H) Instructions 8 142 Sched 1040 (Sched J) Farm Income Averaging 22 WI, SB 143 Instr 1040 (Sched J) Instructions 4 144 Sched 1040 (Sched R) Credit for the Elderly or the Disabled 24 WI, SB 145 Instr 1040 (Sched R) Instructions 4 146 Sched 1040 (Sched SE) Self-Employment Tax 28 WI, SB 148 Form 1040A U.S. Individual Income Tax Return 55 WI 149 Instr 1040A Instructions 65 150 Sched 1040A (Sched 1) Interest and Ordinary Dividends for Form 1040A Filers 6 WI 151 Sched 1040A (Sched 2) Child and Dependent Care Expenses for Form 1040A Filers 29 WI 152 Sched 1040A (Sched 3) Credit for the Elderly or the Disabled for Form 1040A Filers 24 WI 153 Instr 1040A (Sched 3) Instructions 5 154 Form 1040C U.S. Departing Alien Income Tax Return 75 WI 155 Instr 1040C Instructions 6 156 Form 1040ES Estimated Tax for Individuals 26 X WI, SB 157 Form 1040ES (NR) U.S. Estimated Tax for Nonresident Alien Individuals 28 X WI 158 Form 1040EZ Income Tax Return for Single and Joint Filers With No 

Dependents 

14 WI 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 44

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

159 Instr 1040EZ Instructions 32 160 Form 1040NR U.S. Nonresident Alien Income Tax Return 129 a 161 Instr 1040NR Instructions 32 162 Form 1040NR EZ U.S. Income Tax Return for Certain Nonresident Aliens With 

No Dependents 

40 WI 

163 Instr 1040NR EZ Instructions 12 164 Form 1040SS U.S. Self-Employment Tax Ret 122 X a 165 Form 1040 V Payment Voucher 5 X a 166 Form 1040 X Amended U.S. Individual Income Tax Return 38 a 167 Instr 1040X Instructions 6 168 Form 1041 U.S. Income Tax Return for Estates and Trusts 166 SB 169 Instr 1041 Instructions 32 170 Sched 1041 (Sched D) Capital Gains and Losses 66 SB 171 Sched 1041 (Sched J) Accumulation Distribution for a Complex Trust 37 SB 172 Sched 1041 (Sched K-1) Beneficiary's Share of Income, Deductions, Credits, etc. 38 X SB 173 Form 1041A U.S. Information Return Trust Accumulation of Charitable 

Amounts 

58 X SB 

174 Form 1041ES Estimated Income Tax for Estates and Trusts 57 SB 175 Instr 1041ES (OCR) Instructions 4 176 Form 1041 QFT U.S. Income Tax Return for Qualified Funeral Trusts 26 X SB 177 Form 1041 T Allocation of Estimated Tax Payments to Beneficiaries 7 X SB 178 Form 1042 Annual Withholding Tax Return for U.S. Source Income of 

Foreign Persons 

74 X WI,SB,LB 

179 Form 1042 S Foreign Person's U.S. Source Income Subject to Withholding 22 WI,SB,LB 180 Instr 1042 S Instructions 7 181 Form 1045 Application for Tentative Refund 251 WI, SB 182 Instr 1045 Instructions 6 183 Form 1065 U.S. Partnership Return of Income 162 SB,LB 184 Instr 1065 Instructions 32 185 Sched 1065 (Sched D) Capital Gains and Losses 23 SB,LB 186 Sched 1065 (Sched K1) Partner's Share of Income, Credits, Deductions, etc. 60 SB,LB 187 Instr 1065 (Sched K1) Instructions 11 188 Form 1065 B U.S. Return of Income for Electing Large Partnerships 190 SB,TE 189 Instr 1065 B Instructions 25 190 Sched 1065 B (Sched 

K1) 

Partner's Share of Income (Loss) From an Electing Large Partnership 

9 SB,TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 45

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

191 Instr 1065 B (Sched 

K1) 

Instructions 9 

192 Form 1066 U.S. Real Estate Mortgage Investment Conduit (REMIC) 

Income Tax Return 

97 SB,TE 

193 Instr 1066 Instructions 8 194 Sched 1066 (Sched Q) Quarterly Notice to Residual Interest Holder of REMIC Taxable 

Income or Net Loss Allocation 

22 X SB,TE 

195 Form 1078 Certificate of Alien Claiming Residence in the U.S 1 X WI 196 Form 1096 Annual Summary and Transmittal of U.S. Information Returns 6 X WI,SB,LB,TE 197 Form 1098 Mortgage Interest Statement 4 WI,SB,LB,TE 198 Instr 1098 Instructions 4 199 Form 1098 E Student Loan Interest Statement 1 SB,LB,TE 200 Instr 1098 E & 1098 T Instructions 2 201 Form 1098 T Tuition Payments Statement 4 X TE 202 Instr 1099 General Instructions 16 203 Form 1099A Acquisition or Abandonment of Secured Property 6 WI,SB,LB,TE 204 Instr 1099A & 1099C Instructions 4 205 Form 1099B Proceeds from Broker and Barter Exchange Transactions 9 WI,SB,LB 206 Instr 1099B Instructions 2 207 Form 1099C Cancellation of Debt 7 X SB,LB,TE 208 Form 1099DIV Dividends and Distributions 9 SB,LB 209 Instr 1099DIV Instructions 2 210 Form 1099G Certain Government and Qualified State Tuition Program 

Payments 

8 a 

211 Instr 1099G Instructions 2 212 Form 1099INT Interest Income 7 WI,SB,LB,TE 213 Instr 1099INT & 

1099OID 

Instructions 4 

214 Form 1099LTC Long Term Care and Accelerated Death Benefits 4 WI,SB,LB,TE 215 Instr 1099LTC Instructions 2 216 Form 1099MISC Miscellaneous Income 13 WI,SB,LB,TE 217 Instr 1099MISC Instructions 6 218 Form 1099MSA Distributions From an MSA or Medicare+Choice MSA 5 SB,LB,TE 219 Instr 1099MSA & 

5498MSA 

Instructions 2 

220 Form 1099OID Original Issue Discount 7 WI,SB,LB,TE 221 Form 1099PATR Taxable Distributions Received From Cooperatives 9 SB,LB,TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 46

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

222 Instr 1099PATR Instructions 1 223 Form 1099R Distributions From Pensions, Annuities, Retirement or ProfitSharing Plans, IRAs, Insurance Contracts, etc. 15 WI,SB,LB,TE 224 Instr 1099R & 5498 Instructions 19 225 Form 1099S Proceeds from Real Estate Transactions 5 WI,SB,LB,TE 226 Instr 1099S Instructions 4 227 Form 1116 Foreign Tax Credit (Individual, Estate, Trust, or Nonresident 

Alien Individual) 

51 WI,SB,LB 

228 Instr 1116 Instructions 12 229 Form 1118 Foreign Tax Credit - Corporations 147 SB,LB,TE 230 Instr 1118 Instructions 12 231 Sched 1118 (Sched I) Reduction of Oil and Gas Extraction Taxes 20 SB,LB,TE 232 Sched 1118 (Sched J) Adjustments to Separate Limitation Income (Loss) Categories 

for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign Loss Account Balances 

47 SB,LB,TE 

233 Form 1120 U.S. Corporation Income Tax Return 188 SB,LB 234 Instr 1120/1120A Instructions 24 235 Sched 1120 (Sched D) Capital Gains and Losses 18 SB,LB 236 Sched 1120 (Sched PH) U.S. Personal Holding Company (PHC) Tax 51 SB,LB 237 Instr 1120 (Sched PH) Instructions 4 238 Form 1120A U.S. Corporation Short-Form Income Tax Return 98 SB 239 Form 1120F U.S. Income Tax Return of a Foreign Corporation 276 SB,LB 240 Instr 1120F Instructions 20 241 Form 1120FSC U.S. Income Tax Return of a Foreign Sales Corporation 242 SB,LB 242 Instr 1120FSC Instructions 16 243 Sched 1120 (Sched P) Transfer Price or Commission 35 SB,LB 244 Instr 1120 (Sched P) Instructions 2 245 Form 1120H U.S. Income Tax Return for Homeowners Associations 37 SB 246 Sched 1120 (Sched H) Section 280H Limitations for a Personal Service Corporation 

(PSC) 

23 a 

247 Form 1120IC DISC Interest Charge Domestic International Sales Corporation 

Return 

231 SB,LB 

248 Instr 1120IC DISC Instructions 16 249 Sched 1120IC DISC 

(Sched K) 

Shareholder's Statement of IC-DISC Distributions 13 SB,LB 

250 Sched 1120IC DISC Inter-company Transfer Price or Commission 42 SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 47

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

(Sched P) 

251 Sched 1120IC DISC 

(Sched Q) 

Borrower's Certificate of Compliance With the Rules for Producer's Loan 

1 SB,LB 

252 Form 1120L U.S. Life Insurance Company Income Tax Return 341 SB,TE 253 Instr 1120L Instructions 18 254 Form 1120ND Return for Nuclear Decommissioning Funds and Certain 

Related Persons 

65 SB,TE 

255 Instr 1120ND Instructions 4 256 Form 1120PC U.S. Property and Casualty Insurance Company Income Tax 

Return 

316 SB,TE 

257 Instr 1120PC Instructions 18 258 Form 1120POL U.S. Income Tax Return for Certain Political Organizations 35 X SB 259 Form 1120REIT U.S. Income Tax Return for Real Estate Investment Trusts 169 SB,LB 260 Instr 1120REIT Instructions 16 261 Form 1120RIC U.S. Income Tax Return for Regulated Investment Companies 169 SB,LB 262 Instr 1120RIC Instructions 11 263 Form 1120S Income Tax Return for an S Corporation 171 SB,LB 264 Instr 1120S Instructions 28 265 Sched 1120S (Sched D) Capital Gains and Losses and Built-in Gains 32 SB,LB 266 Instr 1120S (Sched D) Instructions 4 267 Sched 1120S (Sched 

K1) 

Shareholder's Share of Income, Credits, Deductions, etc. 52 SB,LB 

268 Instr 1120S (Sched 

K1) 

Instructions 8 

269 Form 1120 SF U.S. Income Tax Return for Settlement Funds (Under Section 

468B) 

46 SB,LB 

270 Instr 1120 SF Instructions 4 271 Form 1120 W Estimated Tax for Corporations 72 X SB,LB 272 Form 1120X Amended U.S. Corporation Income Tax Return 18 X SB,LB 273 Form 1122 Authorization and Consent of Subsidiary Corporation to be 

Included in a Consolidated Income Tax Return 

1 SB,TE 

274 Form 1127 Application for Extension of Time for Payment of Tax 1 X a 275 Form 1128 Application to Adopt, Change or Retain a Tax Year 60 WI,SB,LB,TE 276 Instr 1128 Instructions 4 277 Form 1138 Extension of Time For Payment of Taxes By a Corporation 

Expecting a Net Operating Loss Carryback 

8 X SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 48

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

278 Form 1139 Corporation Application for Tentative Refund 51 SB,LB 279 Instr 1139 Instructions 4 280 Form 1310 Statement of Person Claiming Refund Due a Deceased 

Taxpayer 

7 X WI 

281 Form 1363 Export Exemption Certificate 1 X WI,SB,LB,TE 282 Form 1914 Computation of Allowable MACRS/ACRS/Depreciation 

Deduction 

1 a 

283 Form 2032 Contract Coverage Under Title II of the Social Security Act 5 X WI,SB,LB,TE 284 Form 2063 U.S. Departing Alien Income Tax Statement 17 WI 285 Form 2106 Employee Business Expenses 42 WI 286 Instr 2106 Instructions 4 287 Form 2106 EZ Unreimbursed Employee Business Expenses 17 X WI 288 Form 2120 Multiple Support Declaration 1 X WI 289 Form 2210 Underpayment of Estimated Tax by Individuals, Estates and 

Trusts 

71 WI, SB 

290 Instr 2210 Instructions 6 291 Form 2210F Underpayment of Estimated Tax By Farmers and Fishermen 20 X WI, SB 292 Form 2220 Underpayment of Estimated Tax By Corporations 82 X SB,LB,TE 293 Form 2290 Heavy Highway Vehicle Use Tax Return 10 WI,SB,LB,TE 294 Instr 2290 Instructions 8 295 Form 2350 Application for Extension of Time to File U.S. Income Tax 

Return 

11 X WI, SB 

296 Form 2438 Undistributed Capital Gains Tax Return 14 X SB,LB 297 Form 2439 Notice to Shareholder of Undistributed Long Term Capital 

Gains 

5 X SB,LB 

298 Form 2441 Child and Dependent Care Expenses 24 WI 299 Instr 2441 Instructions 3 300 Form 2553 Election by a Small Business Corporation 19 SB,LB 301 Instr 2553 Instructions 2 302 Form 2555 Foreign Earned Income 63 WI 303 Instr 2555 Instructions 4 304 Form 2555 EZ Foreign Earned Income Exclusion 28 WI 305 Instr 2555 EZ Instructions 3 306 Form 2587 Application for Special Enrollment Examination 8 X a 307 Form 2678 Employer Appointment of Agent 10 X a 308 Form 2688 Application for Additional Extension of Time To File U.S. 

Individual Income Tax Return 

4 X WI, SB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 49

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

309 Form 2758 Application for Extension of Time To File Certain Excise, 

Income, information, and Other Returns 

8 X WI,SB,LB,TE 

310 Form 2848 Power of Attorney and Declaration of Representative 13 WI,SB,LB,TE 311 Instr 2848 Instructions 4 312 Form 3115 Application for Change in Accounting Method 160 WI,SB,LB,TE 313 Instr 3115 Instructions 4 314 Form 3206 Information Statement By United Kingdom Withholding Agents 

Paying Dividends from U.S. Corporations to Residents of the United States and Certain Treaty Countries 

15 X SB,LB 

315 Form 3468 Investment Credit 28 a 316 Instr 3468 Instructions 4 WI,SB,LB 317 Form 3491 Consumer Cooperative Exemption Application 10 X TE 318 Form 3520 Annual Return To Report Transactions With Foreign Trusts and 

Receipt of Certain Foreign Gifts 

89 WI,SB,LB,TE 

319 Instr 3520 Instructions 13 320 Form 3520 A Annual Information Return of Foreign Trust With a U.S. Owner 146 SB 321 Instr 3520 A Instructions 4 322 Form 3621 Net Operating Loss Computation-Individuals, Corporations, and 

Estates and Trusts 

30 a 

323 Form 3621 A Computation of Net Operating Loss Deduction for Intervening 

Years Modifications 

15 a 

324 Form 3800 General Business Credit 64 WI,SB,LB,TE 325 Instr 3800 Instructions 2 326 Form 3903 Moving Expenses 5 X WI 327 Form 3911 Taxpayer Statement Regarding Refund 13 a 328 Form 3975 Tax Professionals Annual Mailing List Application and Order 

Blank 

6 a 

329 Form 4029 Application for Exemption From Social Security and Medicare 

Taxes and Waiver of Benefits 

2 X WI 

330 Form 4136 Credit For Federal Tax Paid On Fuels 25 X WI,SB,LB,TE 331 Form 4137 Social Security and Medicare Tax On Unreported Tip Income 14 X WI 332 Form 4224 Exemption From Withholding of Tax On Income Effectively 

Connected With the Conduct of Trade or Business in the U.S. 

1 X WI,SB,LB,TE 

333 Form 4255 Recapture of Investment Credit 14 X WI,SB,LB,TE 334 Form 4361 Application for Exemption From Self-Employment Tax for Use 

By Ministers, Members of Religious Orders and Christian 

7 X WI 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 50

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

Science Practitioners 

335 Form 4419 Application for Filing Information Returns 

Magnetically/Electronically 

10 X a 

336 Form 4461 Application for Approval of Master or Prototype and Regional 

Prototype Defined Contribution Plan 

45 X TE 

337 Form Application for Approval of Master or Prototype and Regional 

Prototype Defined Benefit Plan 

44 X TE 

338 Form 4461 B Application for Approval of Master or Prototype Plan or 

Regional Prototype Plan (Mass Submitter Adopting Sponsor) 

16 X TE 

339 Form 4466 Corporation Application for Quick Refund of Overpayment of 

Estimated Tax 

9 X SB,LB 

340 Form 4506 Request for Copy or Transcript of Tax Form 14 X WI,SB,LB,TE 341 Form 4506 A Request for Public Inspection or Copy of Exempt Organization 

Tax Form 

8 X WI,SB,LB,TE 

342 Form 4562 Depreciation and Amortization 42 WI,SB,LB,TE 343 Instr 4562 Instructions 11 344 Form 4563 Exclusion of Income for Bona Fide Residents of American 

Samoa 

17 X WI 

345 Form 4626 Alternative Minimum Tax – Corporations 39 SB,TE 346 Instr 4626 Instructions 11 347 Form 4684 Casualties and Thefts 40 WI,SB,LB,TE 348 Instr 4684 Instructions 4 349 Form 4720 Return of Certain Excise Taxes on Charities and Other Persons 

Under Chapters 41 and 42 of the Internal Revenue Code 

113 TE 

350 Instr 4720 Instructions 8 351 Form 4768 Application for Extension of Time To File a Return and/or Pay 

U.S. Estate (and Generation-Skipping Transfer) Taxes 

8 X WI, SB 

352 Form 4782 Employee Moving Expense Information 4 X a 353 Form 4789 Currency Transaction Report 49 X SB,LB 354 Form 4790 Report of International Transportation of Currency or Monetary 

Instruments 

27 X a 

355 Form 4797 Sales of Business Property 53 WI,SB,LB,TE 356 Instr 4797 Instructions 4 357 Form 4802 Transmittal of Information Returns Reported 

Magnetically/Electronically (Continuation of Form 4804) 

5 a 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 51

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

358 Form 4804 Transmittal of Information Returns Reported 

Magnetically/Electronically 

10 X a 

359 Form 4835 Farm Rental Income and Expenses 47 X WI,SB,LB 360 Form 4852 Substitute for Form W-2, Wage and Tax Statement, or Form 

1099R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRA's Insurance Contracts, Etc. 

20 a 

361 Form 4868 Application for Automatic Extension of Time to File U.S. 

Individual Income Tax Return 

10 X WI, SB 

362 Form 4876 A Election to Be Treated as an Interest Charge DISC 23 X SB,LB 363 Form 4952 Investment Interest Expense Deduction 13 X WI, SB 364 Form 4970 Tax on Accumulation Distribution of Trusts 51 X WI,SB,LB 365 Form 4972 Tax on Lump-Sum Distributions 39 WI 366 Instr 4972 Instructions 4 367 Form 4996 Electronic/Magnetic Media Filing Transmittal for Wage and 

Withholding Tax Returns 

11 a 

368 Form 5074 Allocation of Individual Income Tax to Guam or the 

Commonwealth of the Northern Mariana Islands (CNMI) 

32 X WI 

369 Form 5213 Election to Postpone Determination As To Whether the 

Presumption Applies That an Activity is Engaged in for Profit 

3 X WI, SB 

370 Form 5227 Split-Interest Trust Information Return 98 SB 371 Instr 5227 Instructions 8 372 Form 5300 Application for Determination for Employee Benefit Plan 50 TE 373 Instr 5300 Instructions 4 374 Sched 5300 (Sched Q) Nondiscrimination Requirements 41 TE 375 Instr 5300 (Sched Q) Instructions 7 376 Form 5303 Application for Determination for Collectively Bargained Plan 

(Info Copy Only) 

47 TE 

377 Instr 5303 Instructions 4 378 Form 5304 Simple Savings Incentive Match Plan for Employees of Small 

Employers (SIMPLE) 

7 X TE 

379 Form 5305 Traditional Individual Retirement Trust Account 8 X TE 380 Form 5305 E Education Individual Retirement Trust Account 10 X TE 381 Form 5305 EA Education Individual Retirement Custodial Account 10 X TE 382 Form 5305 R Roth Individual Retirement Trust Account 9 X TE 383 Form 5305 RA Roth Individual Retirement Custodial Account 9 X TE 384 Form 5305 RB Roth Individual Retirement Annuity Endorsement 9 X a 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 52

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

385 Form 5035 S SIMPLE Individual Retirement Trust Account 8 X TE 386 Form 5305 A Traditional Individual Retirement Custodial Account 8 X TE 387 Form 5305 SA SIMPLE Individual Retirement Custodial Account 8 X TE 388 Form 5305A SEP Salary Reduction and Other Elective Simplified Employee 

Pension –Individual Retirement Accounts Contribution 

Agreement 

7 X a 

389 Form 5305 SEP Simplified Employee Pension - Individual Retirement Accounts 

Contribution Agreement 

2 X TE 

390 Form 5305 SIMPLE Savings Incentive Match Plan for Employees of Small 

Employers (SIMPLE) 

7 X TE 

391 Form 5306 Application for Approval of Prototype or Employer Sponsored 

Individual Retirement Account 

28 X TE 

392 Form 5306 SEP Application for Approval of Prototype Simplified Employee 

Pension 

18 X TE 

393 Form 5307 Application for Determination for Adopters of Master or 

Prototype, Regional Prototype or Volume Submitter Plans 

40 TE 

394 Instr 5307 Instructions 3 395 Form 5308 Request for Change in Plan/Trust Year 10 X TE 396 Form 5309 Application for Determination of Employee Stock Ownership 

Plan 

25 X TE 

397 Form 5310 Application for Determination Upon Termination (Info Copy 

Only) 

113 TE 

398 Instr 5310 Instructions 4 399 Form 5310 A Notice of Plan Merger or Consolidation, Spinoff, or Transfer of 

Plan Assets or Liabilities; Notice of Qualified Separate Lines of Business 

28 TE 

400 Instr 5310 A Instructions 4 401 Form 5329 Additional Taxes Attributable to IRAs, Other Qualified 

Retirement Plans, Annuities, Modified Endowment Contracts, and MSAs 

45 WI 

402 Instr 5329 Instructions 6 403 Form 5330 Return of Excise Taxes Related to Employee Benefit Plans 70 TE 404 Instr 5330 Instructions 6 405 Form 5452 Corporate Report of Nondividend Distributions 5 SB,LB 406 Form 5471 Information Return of U.S. Persons With Respect To Certain 

Foreign Corporations 

111 WI,SB,LB,TE 

407 Instr 5471 Instructions 15 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 53

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

408 Sched 5471 (Sched J) Accumulated Earnings and Profits (E&P) of Controlled Foreign 

Corporation 

10 WI,SB,LB,TE 

409 Sched 5471 (Sched M) Transactions Between Controlled Foreign Corporation and 

Shareholders or Other Related Persons 

100 WI,SB,LB,TE 

410 Sched 5471 (Sched N) Return of Officers, Directors, and 10% Or More Shareholders 

of a Foreign Personal Holding Company 

22 WI,SB,LB,TE 

411 Sched 5471 (Sched O) Organization or Reorganization of Foreign Corporation, and 

Acquisitions and Dispositions of Its Stock 

34 WI,SB,LB,TE 

412 Form 5472 Information Return of a 25% Foreign-Owned U.S. Corporation 

or a Foreign Corporation Engaged in a U.S. Trade or Business 

63 X SB,LB 

413 Form 5498 IRA Contribution Information 10 X SB,LB 414 Form 5498 MSA MSA or Medicare+Choice MSA Information 6 X SB,LB 415 Form 5500 Annual Return/Report of Employee Benefit Plan (with 100 or 

more participants) 

142 TE 

416 Instr 5500 Instructions 22 417 Sched 5500 (Sched A) Insurance Information 31 TE 418 Sched 5500 (Sched B) Actuarial Information 105 TE 419 Instr 5500 (Sched B) Instructions 8 420 Sched 5500 (Sched C) Service Provider and Trustee Information 14 TE 421 Sched 5500 (Sched E) ESOP Annual Information 29 TE 422 Sched 5500 (Sched F) Fringe Benefit Plan Annual Information Return 10 TE 423 Sched 5500 (Sched G) Financial Schedules 53 TE 424 Sched 5500 (Sched P) Annual Return of Fiduciary of Employee Benefit Trust 8 TE 425 Sched 5500 (Sched 

SSA) 

Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits 

19 TE 

426 Form 5500 C/R Return/Report of Employee Benefit Plan (With fewer than 100 

participants) 

166 TE 

427 Instr 5500 C/R Instructions 20 428 Form 5500 EZ Annual Return of One Participant (Owners and Their Spouses) 

Retirement Plan 

37 TE 

429 Instr 5500 EZ Instructions 8 430 Form 5558 Application for Extension of Time to File Certain Employee Plan 

Returns 

5 X TE 

431 Form 5578 Annual Certification of Racial Nondiscrimination for a Private 

School Exempt From Federal Income Tax 

7 X TE 

432 Form 5712 A Election and Verification of the Cost Sharing or Profit Split 

Method Under Section 936(h)(5) 

18 X SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 54

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

433 Form 5713 International Boycott Report 54 SB,LB 434 Instr 5713 Instructions 7 435 Sched 5713 (Sched A) International Boycott Factor (Section 999(c)(1)) 11 SB,LB 436 Sched 5713 (Sched B) Specifically Attributable Taxes and Income (Section 999(c)(2)) 7 SB,LB 437 Sched 5713 (Sched C) Tax Effect of the International Boycott Provisions 10 SB,LB 438 Form 5735 Possessions Corporation Tax Credit (Under 

Sections 936 and 30A) 

65 SB,LB 

439 Instr 5735 Instructions 4 440 Sched 5735 (Sched P) Allocation of Income and Expenses Under Section 936(h)(5) 34 SB,LB 441 Form 5754 Statement by Person(s) Receiving Gambling Winnings 2 X WI 442 Form 5768 Election/Revocation of Election By an Eligible Section 501(c)(3) 

Organization to Make Expenditures To Influence Legislation 

2 X TE 

443 Form 5884 Work Opportunity Credit 26 SB,LB 444 Form 6069 Return of Excise Tax on Excess Contributions to Black Lung 

Benefit Trust Under Section 4953 and Computation of Section 192 Deduction 

19 X TE 

445 Form 6088 Distributable Benefits From Employee Pension Benefit Plans 8 X TE 446 Form 6118 Claim for Refund of Income Tax Return Preparer Penalties 10 X SB,LB 447 Form 6177 General Assistance Program Determination 5 X a 448 Form 6197 Gas Guzzler Tax 5 X SB,TE 449 Form 6198 At-Risk Limitations 25 WI,SB,LB 450 Instr 6198 Instructions 8 451 Form 6199 Certification of Youth Participating in a Qualified Cooperative 

Education Program 

5 X a 

452 Form 6251 Alternative Minimum Tax - Individuals 64 WI, SB 453 Instr 6251 Instructions 8 454 Form 6252 Installment Sale Income 42 WI,SB,LB 455 Instr 6252 Instructions 2 456 Form 6406 Short Form Application for Determination for Minor Amendment 

of Employee Benefit Plan 

19 TE 

457 Instr 6406 Instructions 3 458 Form 6466 Transmittal of Forms W-4 Reported Magnetically/Electronically 10 X a 459 Form 6467 Transmittal of Forms W-4 Reported Magnetically/Electronically 

(Continuation) 

3 a 

460 Form 6478 Credit for Alcohol Used as Fuel 36 X SB,LB 461 Form 6497 Information Return of Nontaxable Energy Grants or Subsidized 

Energy Financing 

11 X TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 55

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

462 Form 6559 Transmitter Report and Summary of Magnetic Media 11 X a 463 Form 6559 A Continuation Sheet for Form 6559 1 X a 464 Form 6627 Environmental Taxes 17 SB,LB 465 Instr 6627 Instructions 4 466 Form 6765 Credit for Increasing Research Activities 58 SB,LB 467 Instr 6765 Instructions 4 468 Form 6781 Gains and Losses From Section 1256 Contracts and Straddles 33 X WI,SB,LB 469 Form 7004 Application for Automatic Extension of Time to File Corporation 

Income Tax Return 

12 X SB,LB 

470 Form 7018 Employer's Order Blank for Forms 1 X a 471 Form 8023 Corporate Qualified Stock Purchase Elections 49 SB,LB 472 Instr 8023 Instructions 5 473 Form 8023 A Corporate Qualified Stock Purchases 30 SB,LB 474 Form 8027 Employer's Annual Information Return of Tip Income and 

Allocated Tips 

9 SB,LB 

475 Instr 8027 Instructions 4 476 Form 8027 T Transmittal of Employer's Annual Information Return of Tip 

Income and Allocated Tips 

1 SB,LB 

477 Form 8038 Information Return for Tax-Exempt Private Activity Bond Issues 69 TE 478 Instr 8038 Instructions 4 479 Form 8038G Information Return for Tax-Exempt Governmental Obligations 45 TE 480 Instr 8038G Instructions 2 481 Form 8038GC Information Return for Small Tax-Exempt Governmental Bond 

Issues, Leases and Installment Sales 

2 13 X TE 

482 Form 8038T Arbitrage Rebate and Penalty in Lieu of Arbitrage Rebate 39 X TE 483 Form 8082 Notice of Inconsistent Treatment or Amended Return 15 X WI,SB,LB 484 Instr 8082 Instructions 2 485 Form 8160 Tax Package Postcard WI 486 Form 8160 A Form 1120/1120-A Tax Package Postcard SB,LB 487 Form 8160 B Form 1120S Tax Package Postcard SB,LB 488 Form 8160 C Form 1065 Package Postcard SB,LB 489 Form 8160 E Form 8160-E Tax Package Postcard (E-File) a 490 Form 8233 Exemption From Withholding on Compensation for 

Independent Personal Services of a Nonresident Alien Individual 

12 WI 

491 Instr 8233 Instructions 2 492 Form 8264 Application for Registration of a Tax Shelter 114 SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 56

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

493 Instr 8264 Instructions 8 494 Form 8271 Investor Reporting of Tax Shelter Registration Number 3 X WI,SB,LB 495 Form 8274 Certification by Churches and Qualified Church-Controlled 

Organizations Electing Exemption From Employer Social Security and Medicare Taxes 

1 X TE 

496 Form 8275 Disclosure Statement 14 WI,SB,LB 497 Instr 8275 Instructions 2 498 Form 8275 R Regulation Disclosure Statement 15 WI,SB,LB 499 Instr 8275 R Instructions 2 500 Form 8279 Election To Be Treated as a FSC or as a Small FSC 12 X SB,LB 501 Form 8281 Information Return for Publicly Offered Original Issue Discount 

Instruments 

15 X SB,LB 

502 Form 8282 Donee Information Return (Sale, Exchange or Other 

Disposition of Donated Property) 

19 X WI,SB,LB 

503 Form 8283 Noncash Charitable Contributions 29 WI,SB,LB 504 Instr 8283 Instructions 4 505 Form 8288 U.S. Withholding Tax Return for Dispositions by Foreign 

Persons of U.S. Real Property Interests 

13 X SB,LB 

506 Form 8288A Statement of Withholding on Dispositions by Foreign Persons 

of U.S. Real Property Interests 

6 X SB,LB 

507 Form 8288B Application for Withholding Certificate for Dispositions by 

Foreign Persons of U.S. Real Property Interests 

18 X SB,LB 

508 Form 8300 Report of Cash Payments Over $10,000 Received In a Trade 

or Business 

45 SB,LB 

509 Instr 8300 SP Instructions 4 510 Form 8308 Report of a Sale or Exchange of Certain Partnership Interests 3 X WI,SB,LB 511 Form 8328 Carryforward Election of Unused Private Activity Bond Volume 

Cap 

20 X TE 

512 Form 8329 Lender's Information Return for Mortgage Credit Certificates 

(MCCs) 

9 X SB,LB 

513 Form 8330 Issuer's Quarterly Information Return for Mortgage Credit 

Certificates (MCCs) 

9 X SB,LB 

514 Form 8332 Release of Claim to Exemption for Child of Divorced or 

Separated Parents 

2 X WI 

515 Form 8362 Currency Transaction Report by Casinos 70 X SB,TE 516 Form 8379 Injured Spouse Claim and Allocation 17 WI 517 Form 8390 Information Return For Determination of Life Insurance 118 SB,TE 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 57

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

Company Earnings Rate Under Section 809 

518 Instr 8390 Instructions 2 519 Form 8396 Mortgage Interest Credit 19 X WI 520 Form 8404 Interest Charge on DISC-Related Deferred Tax Liability 12 X SB,LB 521 Form 8453 U.S. Individual Income Tax Declaration for Electronic Filing 6 X WI 522 Form 8453 E Employee Benefit Plan Declaration and Signature for 

Electronic/Magnetic Media Filing 

8 X TE 

523 Form 8453 F U.S. Estate or Trust Income Tax Declaration and Signature for 

Electronic and Magnetic Media Filing 

5 X SB 

524 Form 8453 NR U.S. Nonresident Alien Income Tax Declaration for Magnetic 

Media Filing 

9 X WI 

525 Form 8453 OL U.S. Individual Income Tax Declaration for On-Line Services 

Electronic Filing 

6 X WI 

526 Form 8453 P U.S. Partnership Declaration and Signature for Electronic and 

Magnetic Media Filing 

5 X SB,LB 

527 Form 8498 Program Sponsor Agreement for Continuing Education for 

Enrolled Agents 

6 X a 

528 Form 8508 Request for Waiver From Filing Information Returns on 

Magnetic Media (Forms W-2, W-2G, 1042S, 1098, 1099 Series, 5498, 5498-MSA, and 8027) 

10 X a 

529 Form 8554 Application for Renewal of Enrollment to Practice Before the 

Internal Revenue Service 

6 X a 

530 Form 8582 Passive Activity Loss Limitations 17 WI, SB 531 Instr 8582 Instructions 11 532 Form 8582 CR Passive Activity Credit Limitations 49 WI, SB 533 Instr 8582 CR Instructions 16 534 Form 8586 Low-Income Housing Credit 29 X WI,SB,LB 535 Form 8594 Asset Acquisition Statement 9 X SB,LB 536 Form 8596 Information Return for Federal Contracts 13 X TE 537 Form 8596 A Quarterly Transmittal of Information Returns for Federal 

Contracts 

6 X TE 

538 Form 8606 Nondeductible IRAs 39 WI 539 Instr 8606 Instructions 8 540 Form 8609 Low-Income Housing Credit Allocation Certification 21 X SB,LB,TE 541 Sched 8609 (Sched A) Annual Statement 18 X SB,LB 542 Form 8610 Annual Low-Income Housing Credit Agencies Report 16 X TE 543 Form 8611 Recapture of Low-Income Housing Credit 14 X SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 58

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

544 Form 8612 Return of Excise Tax on Undistributed Income of Real Estate 

Investment Trusts 

19 X SB,LB 

545 Form 8613 Return of Excise Tax on Undistributed Income of Regulated 

Investment Company 

19 X SB,LB 

546 Form 8615 Tax for Children Under Age 14 Who Have Investment Income 

of More Than $1,400 

19 X WI 

547 Form 8621 Return by a Shareholder of a Passive Foreign Investment 

Company or Qualified Electing Fund 

46 WI,SB,LB 

548 Instr 8621 Instructions 7 549 Form 8633 Application to Participate in the IRS e-file Program 39 X a 550 Form 8645 Soil and Water Conservation Plan Certificate 3 X a 551 Form 8689 Allocation of Individual Income Tax to the Virgin Islands 40 X WI 552 Form 8693 Low-Income Housing Credit Disposition Bond 11 X SB,LB 553 Form 8697 Interest Computation Under the Look-Back Method for 

Completed Long Term Contracts 

24 SB,LB 

554 Instr 8697 Instructions 6 555 Form 8703 Annual Certification of a Residential Rental Project 11 X SB,LB 556 Form 8709 Exemption From Withholding On Investment Income of Foreign 

Governments and International Organizations 

9 X TE 

557 Form 8716 Election to Have a Tax Year Other Than a Required Tax Year 5 X SB,LB 558 Form 8717 User Fee for Employee Plan Determination Letter Request 21 X TE 559 Form 8718 User Fee for Exempt Organization Determination Letter 

Request 

5 X TE 

560 Form 8725 Excise Tax on Greenmail 16 X WI,SB,LB 561 Form 8736 Application for Automatic Extension of Time to File U.S. Return 

for a Partnership, REMIC, or for Certain Trusts 

8 X SB,LB 

562 Form 8743 Information on Fuel Inventories and Sales 22 X a 563 Form 8752 Required Payment or Refund Under Section 7519 17 X SB,LB 564 Form 8800 Application for an Additional Extension of Time to File a U.S. 

Return for a Partnership, REMIC or for Certain Trusts 

6 X SB,LB 

565 Form 8801 Credit for Prior Year Minimum Tax - Individuals, Estates, and 

Trusts 

48 X WI, SB 

566 Form 8804 Annual Return for Partnership Withholding Tax (Section 1446) 21 SB,LB 567 Instr 8804 Instructions 8 568 Form 8805 Foreign Partner's Information Statement of Section 1446 

Withholding tax 

18 SB,LB 

569 Form 8809 Request for Extension of Time to File Information Returns 9 X SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 59

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

570 Form 8810 Corporate Passive Activity Loss and Credit Limitations 17 X SB,LB 571 Form 8811 Information Return for Real Estate Mortgage Investment 

Conduits (REMICs) and Issuers of Collateralized Debt Obligations 

14 X SB,LB 

572 Form 8812 Additional Child Tax Credit 9 X WI 573 Form 8813 Partnership Withholding Tax Payment (Section 1446) 3 SB,LB 574 Form 8814 Parent's Election to Report Child's Interest and Dividends 11 X WI 575 Form 8815 Exclusion of Interest From Series EE and I U.S. Savings Bonds 

Issued After 1989 

15 X WI 

576 Form 8816 Special Loss Discount Account and Special Estimated Tax 

Payments for Insurance Companies 

21 X SB,TE 

577 Form 8817 Allocation of Patronage and Non-patronage Income and 

Deductions 

41 X a 

578 Form 8818 Optional Form To Record Redemption of Series EE and I U.S. 

Savings Bonds Issued After 1989 

12 X WI 

579 Form 8819 Dollar Election Under Section 985 16 X SB,LB 580 Form 8820 Orphan Drug Credit 25 X SB,LB 581 Form 8821 Tax Information Authorization 11 X WI,SB,LB,TE 582 Form 8822 Change of Address 18 X WI,SB,LB,TE 583 Form 8823 Low-Income Housing Credit Agencies Report of 

Noncompliance or Building Disposition 

20 X TE 

584 Form 8824 Like-Kind Exchanges 38 X WI,SB,LB 585 Form 8825 Rental Real Estate Income and Expenses of a Partnership or 

an S Corporation 

22 X SB,LB 

586 Form 8826 Disabled Access Credit 29 X SB,LB 587 Form 8827 Credit for Prior Year Minimum Tax - Corporations 9 X SB,LB 588 Form 8828 Recapture of Federal Mortgage Subsidy 23 WI 589 Instr 8828 Instructions 3 590 Form 8829 Expenses for Business Use of Your Home 42 SB 591 Instr 8829 Instructions 4 592 Form 8830 Enhanced Oil Recovery Credit 25 X SB,LB 593 Form 8831 Excise Taxes on Excess Inclusions of REMIC Residual 

Interests 

14 X SB,LB 

594 Form 8832 Entity Classification Election 5 X SB,LB 595 Form 8833 Treaty-Based Return Position Disclosure Under Section 6114 

or 7701(b) 

6 X WI,SB,LB 

596 Form 8834 Qualified Electric Vehicle Credit 29 X WI,SB,LB 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 60

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

597 Form 8835 Renewable Electricity Production Credit 35 X SB,LB 598 Form 8837 Notice of Adoption of Revenue Procedure Model Amendments 10 X TE 599 Form 8838 Consent to Extend the Time to Assess Tax Under Section 367 - 

Gain Recognition Agreement 

7 X WI,SB,LB 

600 Form 8839 Qualified Adoption Expenses 36 WI 601 Instr 8839 Instructions 4 602 Form 8840 Closer Connection Exception Statement for Aliens 32 X WI 603 Form 8842 Election to Use Different Annualization Periods for Corporation 

Estimated Tax 

1 X SB,LB 

604 Form 8843 Statement for Exempt Individuals and Individuals with a 

Medical Condition 

23 X WI 

605 Form 8844 Empowerment Zone Employment Credit 36 X SB,LB 606 Form 8845 Indian Employment Credit 27 X SB,LB 607 Form 8846 Credit for Employer Social Security and Medicare Taxes Paid 

on Certain Employee Tips 

27 X SB,LB 

608 Form 8847 Credit for Contributions to Selected Community Development 

Corporations 

25 X WI,SB,LB 

609 Sched 8847 (Sched A) Receipt for Contribution to Selected Community Development 

Corporation (CDC) 

2 X WI,SB,LB 

610 Form 8848 Consent to Extend the Time to Assess the Branch Profits Tax 

Under Regulations Sections 1.884-2T(a) and (c) 

7 X SB,TE 

611 Form 8849 Claim for Refund of Excise Taxes 2 SB,LB 612 Instr 8849 Instructions 3 613 Sched 8849 (Sched 1) Nontaxable Use of Fuels 5 X a 614 Sched 8849 (Sched 2) Sales by Registered Ultimate Vendors of Un-dyed Diesel Fuel 

and Un-dyed Kerosene 

3 X a 

615 Sched 8849 (Sched 3) Gasohol Blending 3 X a 616 Sched 8849 (Sched 4) Sales by Gasoline Wholesale Distributors 1 X a 617 Sched 8849 (Sched 5) Section 4081(e) Claims 6 X a 618 Sched 8849 (Sched 6) Other Claims 2 X a 619 Form 8850 Pre-Screening Notice and Certification Request for the Work 

Opportunity and Welfare-to-Work Credits 

4 SB,LB 

620 Instr 8850 Instructions 2 621 Form 8851 Summary of Medical Savings Account 8 X SB,LB 622 Form 8852 Currency Transaction Report by Casinos-Nevada 65 X SB,TE 623 Form 8853 Medical Savings Accounts & Long Term Care Insurance 

Contracts 

32 WI 
Enclosure II 

 GAO-01-301R Information on Federal Tax System 61

No. 

Product type Code number Name of form, instruction, or schedule 

Number of pages of instructions 

Number of lines per form

Instructions in form/schedule 

IRS division 

624 Instr 8853 Instructions 8 625 Form 8854 Expatriation Information Statement 42 WI 626 Instr 8854 Instructions 3 627 Form 8857 Request for Innocent Spouse Relief 9 X WI 628 Form 8859 District of Columbia First-Time Homebuyer Credit 12 X WI 629 Form 8860 Qualified Zone Academy Bond Credit 18 X SB,TE 630 Form 8861 Welfare-to-Work Credit 26 X SB,LB 631 Form 8862 Information To Claim Earned Income Credit After Disallowance 25 WI 632 Instr 8862 Instructions 2 633 Form 8863 Education Credits (Hope and Lifetime Learning Credits) 25 X WI 634 Form 8865 Return of U.S. Persons With Respect to Certain Foreign 

Partnerships 

29 a 

635 Instr 8865 Instructions 23 a 636 Sched 8865 (Sched K-1) Partner's Share of Income, Credits. Deductions, etc. 54 a 637 Sched 8865 (Sched O) Transfer of Property to a Foreign Partnership 16 a 638 Sched 8865 (Sched P) Acquisitions, Dispositions, and Changes of Interests in a 

Foreign Partnership 

19 a 

639 Form 8866 Interest Computation Under the Look-Back Method for Property 

Depreciated Under the Income Forecast Method 

13 a 

640 Instr 8866 Instructions 4 641 Form 8867 Paid Preparer's Earned Income Credit Checklist 13 a 642 Form 8888 Direct Deposit of Refund 5 X a 643 Form 9041 Application for Electronic/Magnetic Media Filing of Business 

and Employee Benefit Plan Returns 

10 X a 

644 Form 9325 Acknowledgement and General Information for Taxpayers Who 

File Returns Electronically 

1 a 

645 Form 9423 Collection Appeal Request 19 X a 646 Form 9452 Filing Assistance Program 7 X a 647 Form 9465 Installment Agreement Request 13 X WI 648 Form 12153 Request for a Collection Due Process 1 X a 649 Form 12196 Small Business Office Order Blank 2 Total pages and lines 11481485b485 16142 a aIRS data do not show any division. bTotal for separately published instructions only, does not include instructions contained in forms and schedules. 

Source: IRS 1999 Federal Tax Products on CD-ROM. 
Enclosure II 

62 GAO-01-301R Information on Federal Tax System 

Table II.2 shows a list of 342 IRS publications and the number of pages in each (about 13,400), as 

of 1999 or 2000, depending on the most recent information available. Foreign language 

publications have been excluded from the list. Also, the list is limited to publications that 

appear—based on their titles and limited published descriptions—to include guidance for 

taxpayers on meeting the requirements of the tax system. According to IRS officials, no single 

IRS listing identifies all IRS publications that provide guidance for taxpayers separately from 

other types of publications, such as those intended for IRS’ internal use. As a result, we used 

several sources (see end of table II.2) to gather the list. 

Table II.2: IRS Publications as of November 1999 to April 2000

No. Publication 

Number 

of pages 

1 Your Rights as a Taxpayer 2 

3 Armed Forces' Tax Guide 25 

4 Student's Guide to Federal Income Tax 17 

5 Appeal Rights and Preparation of Protests for Unagreed Cases 2 

15 Circular E, Employer's Tax Guide 64 

15-A Employer's Supplemental Tax Guide (Supplement to Circular E, Employers Tax Guide, 

Publication 15) 

64 

17 Your Federal Income Tax 275 

21 Understanding Taxes (Resource Kit) 288 

51 Circular A, Agricultural Employer's Tax Guide 48 

54 Tax Guide for U.S. Citizens and Resident Aliens Abroad 45 

80 Circular SS - Federal Tax Guide for Employers in the U.S. Virgin Islands, Guam, American 

Samoa, and the Commonwealth of the Northern Mariana Islands 

20 

216 Conference and Practice Requirements 12 

225 Farmer's Tax Guide 116 

334 Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ) 56 

349 Federal Highway Use Tax on Heavy Vehicles 12 

378 Fuel Tax Credits and Refunds 16 

393 Federal Employment Tax Forms 32 

454 Your Business Tax Kit 116 

463 Travel, Entertainment, Gift, and Car Expenses 52 

487 How to Prepare Application Requesting the US to Release Its Right to Redeem Property 

Secured by a Federal Tax Lien 

2 

501 Exemptions, Standard Deduction, and Filing Information 20 

502 Medical and Dental Expenses 19 

503 Child and Dependent Care Expenses 20 

504 Divorced or Separated Individuals 26 

505 Tax Withholding and Estimated Tax 48 

508 Tax Benefits for Work-Related Education 11 

509 Tax Calendars for 2000 12 

510 Excise Taxes for 2000 43 

513 Tax Information for Visitors to the U.S. 12 

514 Foreign Tax Credit for Individuals 30 

515 Withholding of Tax on Nonresident Aliens and Foreign Corporations 43 

516 U.S. Government Civilian Employees Stationed Abroad 11 

517 Social Security and Other Information for Members of the Clergy & Religious Workers 20 

519 U.S. Tax Guide for Aliens 52 

520 Scholarships and Fellowships 7 

521 Moving Expenses 16 

523 Selling Your Home 39 

524 Credit for the Elderly or the Disabled 15 

525 Taxable and Nontaxable Income 31 

526 Charitable Contributions 16 

527 Residential Rental Property (Including Rental of Vacation Homes) 20 
Enclosure II 

63 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

529 Miscellaneous Deductions 20 

530 Tax Information for First-Time Homeowners 12 

531 Reporting Tip Income 8 

533 Self-Employment Tax 18 

534 Depreciating Property Placed In Service Before 1987 20 

535 Business Expenses 67 

536 Net Operating Losses 19 

537 Installment Sales 18 

538 Accounting Periods and Methods 18 

541 Partnerships 27 

542 Corporations 24 

544 Sales and other Dispositions of Assets 38 

547 Casualties, Disasters, and Thefts (Business and Nonbusiness) 15 

550 Investment Income and Expenses 70 

551 Basis of Assets 11 

552 Recordkeeping for Individuals 8 

553 Highlights of 1999 Tax Changes 16 

554 Older Americans' Tax Guide 29 

555 Community Property 12 

556 Examination of Returns, Appeal Rights, and Claims for Refund 16 

557 Tax-Exempt Status for Your Organization 55 

559 Survivors, Executors and Administrators 40 

560 Retirement Plans for Small Business (SEP, SIMPLE and Keogh Plans) 22 

561 Determining the Value of Donated Property 12 

564 Mutual Fund Distributions 15 

570 Tax Guide for Individuals With Income from U.S. Possessions 14 

571 Tax-Sheltered Annuity Programs for Employees of Public Schools and Certain TaxExempt Organizations 24 

575 Pension and Annuity Income 40 

578 Tax Information for Private Foundations and Foundation Managers 36 

583 Starting a Business and Keeping Records 24 

584 Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property) 24 

587 Business Use of Your Home (Including Use by Day-Care Providers) 27 

590 Individual Retirement Arrangements (IRAs)(Including Roth IRAs and Education IRAs) 84 

593 Tax Highlights for U.S. Citizens and Residents Going Abroad 11 

594 The IRS Collection Process 12 

595 Tax Highlights for Commercial Fishermen 12 

596 Earned Income Credit 56 

597 Information on the United States-Canada Income Tax Treaty 4 

598 Tax on Unrelated Business Income of Exempt Organizations 23 

686 Certification for Reduced Tax Rates in Tax Treaty Countries 2 

721 Tax Guide to U.S. Civil Service Retirement Benefits 28 

723 C Actuarial Values I Valuation of Last Survivor Charitable Remainders - Part C 292 

723 D Actuarial Values I Valuation of Last Survivor Charitable Remainders - Part D 296 

723 E Actuarial Values II – Factors at 10 Percent Involving One and Two Lives 68 

724 Help Other People With Their Tax Returns 2 

733 Rewards for Information Provided by Individuals to the Internal Revenue Service 2 

742 Why Your Return Is Being Examined 2 

783 Instructions on How to Apply for Certificate of Discharge of Property From Federal Tax 

Lien 

4 

784 How to Prepare Application for Certificate of Subordination of Federal Tax Lien 2 

786 Instructions for Preparing Notice of Non-Judicial Sale of Property & Application for 

Consent to Sale 

2 

794 Favorable Determination Letter 4 

818 IRS, The Whole Picture 28 
Enclosure II 

64 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

850 English-Spanish Glossary of Words and Phrases 25 

892 Exempt Organization Appeal Procedures for Unagreed Issues 4 

901 U.S. Tax Treaties 44 

905 Unemployment Compensation: It's Taxable! 2 

907 Tax Highlights for Persons With Disabilities 11 

908 Bankruptcy Tax Guide 25 

910 Guide to Free Tax Services 40 

911 Direct Sellers 20 

915 Social Security and Equivalent Railroad Retirement Benefits 26 

919 How Do I Adjust My Tax Withholding? 18 

925 Passive Activity and At-Risk Rules 23 

926 Household Employer's Tax Guide 14 

929 Tax Rules for Children and Dependents 20 

936 Home Mortgage Interest Deduction 14 

938 Real Estate Mortgage Investment Conduits (REMICS) Reporting Information (And Other 

Collateralized Debt Obligations (CDOs)) 

48 

939 General Rule for Pensions and Annuities 79 

946 How to Depreciate Property 104 

947 Practice Before the IRS and Power of Attorney 16 

950 Introduction to Estate and Gift Taxes 8 

952 Sick Pay Reporting 12 

954 Tax Incentives for Empowerment Zones and Other Distressed Communities 15 

957 Reporting Back Pay and Special Wage Payments to the Social Security Administration 10 

963 Federal-State Reference Guide 184 

966 Electronic Federal Tax Payment System (Answers to the most commonly asked 

questions) 

9 

967 The IRS Will Figure Your Tax 6 

968 Tax Benefits for Adoption 4 

969 Medical Savings Accounts 7 

970 Tax Benefits for Higher Education 19 

971 Innocent Spouse Relief 12 

972 Child Tax Credit 7 

1004 Identification Numbers Under ERISA 8 

1020 Appeal Procedures Employee Plans Examinations 4 

1024 How to Prepare for Certificate of Nonattachment of Federal Tax Lien 2 

1035 Extending the Tax Assessment Period 2 

1045 Information for Tax Practitioners 15 

1049B Tax Supplement 1999 20 

1057 Small Business Tax Education Program (Brochure) 8 

1066 Small Business Tax Workshop Workbook 128 

1075 Tax Information Security Guidelines for Federal, State and Local Agencies 58 

1101 Application Package and Guidelines for Managing a TCE Program 49 

1114 Tax Counseling for the Elderly (Brochure) 2 

1137 Toll Free and Tele-Tax Telephone Numbers 16 

1141 General Rules and Specifications for Private Printing of Substitute Forms W-2 and W-3 16 

1149 Magnetic Tape Reporting for Windfall Profit Tax Information Returns 20 

1150 Tax Havens and Their Use By United States Taxpayers: An Overview 248 

1153 How to Prepare Application for Certification of Subordination of Federal Tax Lien Under 

Section 63259(d)(3) of the Internal Revenue Code 

2 

1162 Group Exemption Procedures 4 

1167 Substitute Printed, Computer-Prepared, and Computer-Generated Tax Forms and 

Schedules 

104 

1179 Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, 

and W-2G 

31 
Enclosure II 

65 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

1187 Specifications for Filing Form 1042S, Foreign Person's U.S. Source Income Subject to 

Withholding, Magnetically or Electronically 

105 

1194 B Business Taxpayer Information Publications 448 

1194 

Vol 1 

A Selection of IRS Tax Information Publications 348 

1194 

Vol 2 

A Selection of IRS Tax Information Publications 364 

1211 Partnerships, S--Corporations--That Desire to change its Tax Year 8 

1212 List of Original Issue Discount Instruments 16 

1220 Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically 140 

1223 Specifications for Private Printing of Substitute Forms W-2c and W-3c 8 

1235 Advance Earned Income Tax Credit Brochure 6 

1244 Employee's Daily Record of Tips and Report to Employer 10 

1245 Specifications for Filing Form W-4, Employees Withholding Allowance Certificate 

Magnetically or Electronically 

32 

1264 Form 941, Employer's Quarterly Federal Tax Return 36 

1273 A An Overview of the IRS 2 

1281 Backup Withholding on Missing and Incorrect TINs 52 

1314 Form 940, Employer's Federal Unemployment (FUTA) Tax Return (File Specifications etc.) 48 

1315 Requirements and Instructions for Reporting Agents who Submit Employment FTD 

Payment Information 

20 

1320 Operation LINK 24 

1321 Special Instructions for Bona Fide Residents of Puerto Rico Who Must File a U.S. 

Individual Income Tax Return 

4 

1345 Handbook for Electronic Filers of Individual Income Tax Returns 61 

1346 Electronic Return File Specifications and Record Layouts for Individual Tax Returns (Tax 

Year 1999) 

672 

1355 Requirements and Conditions for Reproduction, Private Design and Printing of Substitute 

Forms 1040 ES 

12 

1374 Requirements and Instructions for Certain Banks and Fiduciaries to Submit Quarterly 

Estimated Income Tax Payment Information 

20 

1375 Procedures for Issuing Rulings, Determination Letters, and Information Letters, and for 

entering into Closing Agreements on Specific Issues Under the Jurisdiction of the 

Associate Chief Counsels 

72 

1391 Deductibility of Payments Made to Charities Conducting Fund-Raising Events 8 

1409 Tax Supplement 1999 International 7 

1413 Federal Tax Forms Are Available 2 

1431 Telephone Assistance 2 

1437 Procedures For Electronic and Magnetic Media Filing of U.S. Income Tax Return for 

Estates and Trusts - Form 1041 Tax Year 1999 

54 

1438 File Specifications, Validation Criteria, Record Layouts for Electronic and Magnetic Media 

Filings of US Income Tax Returns for Estates and Trusts, Form 1041 

336 

1450 A Certificate of Release of Federal Tax Lien 2 

1457 Actuarial Values Book Aleph 880 

1458 Actuarial Values Book Beth 880 

1459 Actuarial Values Book Gimel 112 

1463 Small Business Tax Education Program (Pocket Folder) 4 

1466 

Supp 

Small Business Tax Education Program Kit Supplement - CD-ROM 2 

1469 Service: Its Our Name (Folder) 4 

1473 Service: Its Our Name 12 

1474 Technical Specifications Guide For Reporting Agent, Authorization for Magnetic 

Tape/Electronic Filers 

26 

1488 Favorable Notification Letter 2 

1494 Table for Figuring Amount Exempt From Levy On Wages, Salary, and Other Income 

(Forms 668-W & W(c)) 

2 
Enclosure II 

66 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

1495 Earned Income Credit Stuffer 2 

1502 Depositing Taxes 4 

1506 Backup Withholding Questions and Answers 2 

1508 File Specifications, Validation Criteria, Record Layouts for Electronic and Magnetic Med 194 

1510 Federal Tax Deposit (FTD) Checklist for Tellers and Taxpayers 2 

1516 Specifications for Filing Forms 8596 28 

1518 Tax Tips--A Calendar for Small Business 36 

1524 Procedures For Electronic and Magnetic Media Filing of Form 1065, U.S. Partnership 

Return of Income (Including The "Paper-Parent Option") 

34 

1525 Validation Criteria and Record Layouts for Electronic Filing of Form 1065 413 

1527 IRP-BBS IRS Information Reporting Program Bulletin Board System 24 

1542 Per Diem Rates 26 

1544 Reporting Cash Payments of Over $10,000 8 

1546 The Taxpayer Advocate Service of the IRS 2 

1565 Looking Out for #2 A Married Couple's Guide to Understanding Your Benefit Choices at 

Retirement from a Defined Contribution Plan 

42 

1566 Looking Out for #2 A Married Couple's Guide to Understanding Your Benefit Choices at 

Retirement from a Defined Benefit Plan 

36 

1577 Applying for Educational Financial Aid 1 

1582 Information Returns Vendor List 53 

1586 Reasonable Cause Regulations and Requirements as They Apply to Missing and Incorrect 

Name/TINs 

52 

1600 Disaster Losses--The IRS Can Help 2 

1620 Earned Income Tax Credit (Folder) 4 

1622 Earned Income Tax Credit (Brochure) 6 

1635 Understanding Your EIN 42 

1643 A Married Couple's Guide to Understanding Your Benefit Choices at Retirement 2 

1660 Collection Appeal Rights 4 

1678 Project 1040PC (Handbook for 1040PC Format Preparers) 40 

1679 A Guide to Backup Withholding for Missing and Incorrect Name/TINs 36 

1693 SSA / IRS Reporter 4 

1715 It's Never Too Late 6 

1716 Backup Withholding Questions and Answers for Missing and Incorrect TINs 10 

1730 International Business Getting Started With: FIRPTA 6 

1771 Charitable Contributions - Substantiation and Disclosure Requirements 2 

1796 

CD ROM 

IRS Federal Tax Products 2 

1798 Retiring Q' and A's 8 

1803 Click Once Federal/State Brochure 6 

1819 Divorce an IRS Perspective 6 

1824 IRS Tips for Withholding on Nonresident Aliens 2 

1828 Tax Guide for Churches and Other Religious Organizations 40 

1853 Small Business Talk 12 

1854 How to Prepare a Collection Information Statement (Form 433-A) 2 

1855 Technical Specification Guide for The Electronic Filing of Form 941Employer's Quarterly 

Federal Tax Return (941 ELF) 

168 

1857 Filing Your Taxes Brochure 4 

1861A Q&A Electronic Tax Filing for Taxpayers 2 

1861B Q&A Electronic Tax Filing for Professionals 2 

1861C Q&A Federal/State Electronic Tax Filing for Taxpayers 2 

1861D Q&A Federal/State Electronic Tax Filing for Tax Professionals 2 

1861E Q&A Telefile 2 

1961F Q&A Electronic Tax Filing On-line for Taxpayers 2 

1861G Q&A Electronic Tax Filing On-line for Companies 2 

1861H Q&A 1040PC for Taxpayers 2 
Enclosure II 

67 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

1861I Q&A 1040PC for Practitioners and Software Developers 2 

1861J Q&A Electronic Filing Walk-In Electronic Filing 2 

1861K Q&A Electronic Tax Filing VITA/TCE for Sponsors and Site Coordinators 2 

1861L Q&A Electronic Tax Filing Organizations Sponsoring Electronic Filing 2 

1861M Q&A Third Party Processor 2 

1861N Q&A Form 1065, US Partnership Return of Income 2 

1861O Q&A Form 1041, Income Tax Return for Estates and Trusts 2 

1861P Q&A Magnetic Tape Reporting 2 

1861Q Q&A Electronic Tax Filing 941 ELF 4 

1862A Fact Sheet Electronic Tax Filing for Taxpayers 2 

1862B Fact Sheet Electronic Tax Filing for Tax Professionals 2 

1862C Fact Sheet Federal/State Electronic Tax Filing 2 

1862D Fact Sheet Telefile 4 

1862E Fact Sheet Electronic Tax Filing On-line Filing 2 

1862F Fact Sheet 1040PC 2 

1862G Fact Sheet Electronic Tax Filing Walk-in Electronic Tax Filing 2 

1862I Fact Sheet Electronic Tax Filing Organizations Sponsoring Electronic Filing 2 

1862J Fact Sheet Third Party Processor 2 

1862K Fact Sheet Form 1065 2 

1862L Fact Sheet Form 1041 2 

1862M Fact Sheet Magnetic Tape Reporting 2 

1862N Fact Sheet 941 ELF 2 

1862O Fact Sheet Employee Benefit Plan 5500 Series Return 2 

1866 1994 IRS Customer Satisfaction Report 120 

1866A 1995 IRS Customer Satisfaction Survey: Final Report 136 

1866B 1997 IRS Customer Satisfaction Survey: Final Report 114 

1872 Tips on Tips--A Guide to Tip Income Reporting for Employees in the Food and Beverage 

Industry 

8 

1875 Employer/Tip Income Reporting 8 

1896 1995 IRS Small Business Customer Satisfaction Survey: Final Report 110 

1911 Instructions for Preparing and Submitting Form 8655 4 

1912 Requirements for Magnetic Tape Reporting of Form 940 16 

1915 Understanding Your IRS Individual Taxpayer Identification Number 8 

1966 Tax Help (Philadelphia Service Center) 62 

1976 Independent Contractor or Employee? 1 

2010 Do You Owe Tax? 2 

2011 How Restaurant and Employees Compute the Tip Rates 2 

2017 Tips to Shorten Your Audit Information Guide 2 

2024 How to Pay Your Taxes 2 

2035 1999 Arkansas - Oklahoma Guide to Free Tax Help 20 

2036 Power of Attorney - Everything You Need to Know and More About Filing Form 2848 at 

IRS Service Centers 

2 

2043 1999 ELF Peak Refund Cycle Chart 1 

2053 Quick and Easy Access to IRS Tax Help and Forms/Fax Forms List 4 

2053A Quick and Easy Access to IRS Tax Help and Forms 1 

2055 IRS TCE -AARP Tax Aide 1999 Georgia State List 28 

2092 Highlights of the Taxpayer Relief Act of 1997 16 

2094 Tax Issues for the Advanced Preparer 48 

2105 Why Do I Have to Pay Taxes? 2 

2122 How to Request Employer Identification Number 2 

2181 Teaching About Taxes 2 

2186 Tax Item. Penalties 5 

2187 Tax Item. Support Test and Worksheet for Dependency Exemption 6 

2188 Tax Item. Request for IRS to Figure Taxable Part of Annuity 4 
Enclosure II 

68 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

2189 Tax Item. Worksheets to Figure Taxable Social Security and Equivalent Railroad 

Retirement Benefits 

5 

2190 Tax Item. Deduction or Credit for Amounts You Repaid 4 

2191 Tax Item. Unemployment Compensation 3 

2193 Too Good to be True Trusts 2 

2194 Disaster Losses Kit 216 

3005 E-File Practitioner Kit 16 

3062 Requirements for ELF Program 12 

3079 Gaming Publication for Tax-Exempt Organizations 36 

3085 Information of Self-Employment Tax 6 

3106 Overview of Imaging Reimbursements Program for Gasoline Station Owners 2 

3107 EITC Tax Professional Kit 47 

3111A EFTPS Folder 2 

3112 The IRS E-File Application Package 15 

3113 Testimonials Brochure 2 

3114 Compliance Checks 2 

3115 Opportunities for Development of Tax Administrators, Year 2000 Programs 1 

3125 An Important Message For Taxpayers With IRAs 2 

3136 People 15 to 23 Years Old: You May Not be Required To Have Federal Tax Withheld 6 

3137 People on a Pension: You May Not be Required To Have Federal Tax Withheld 8 

3144 Tips on Tips--A Guide to Tip Income Reporting for Employer 12 

3148 Tips on Tips--A Guide to Tip Income Reporting for Employees 12 

3150 IRS Corporate Partnership Program 4 

3167 New Tax Law Brochure Save $400 for each Child 8 

3168 New Tax Law Brochure New Ways to Save on Your 1998 Taxes 12 

3169 New Tax Law Brochure New IRA Benefits 8 

3171 New Tax Law Brochure Save Up to $1500 8 

3187 Electronic Tax Administration Strategic Plan 64 

3195 Reduce Unnecessary Filing Package for the Elderly 8 

3204 Automotive Manufacturers Incentive Program 2 

3211 EITC Q&A 6 

3216 AEITC Brochure 6 

3228 Credit Card Brochure 2 

3229 Direct Debit Brochure 2 

3319 Low-Income Taxpayer Clinics 1999 Grant Application Package 48 

3367 Tax Tips for Tax Professionals from the Fresno Service Center 39 

3373 Disclosure of Information to Federal, State and Local Agencies 44 

3385 Internal Revenue Service Annual Report Fiscal Year 1998 107 

3386 Tax Guide--Veteran's Organizations 52 

3390 US Tax Treaty Agreement Between the Government of the US and the Government of the 

Peoples Republic of China 

32 

3391 US Tax Treaty Agreement the Convention Between the US and Japan and for the 

Avoidance of Double Taxation 

36 

3406 Business E-file Fact Sheets 30 

3410 US Tax Treaty--Convention Between the Government of the US and France 48 

3416 Electronic Filing Form of 1065 108 

3425 Four Easy Ways to Use EFTPS 12 

3439 Transfer Pricing Seminar Course Announcement 4 

3440 Training Center Management and Administration Seminar Course Announcement 4 

3441 International Financial Fraud Training Program Course Announcement 1 

3442 Computer Audit Specialist Training Program Course Announcement 4 

3443 International Computer Evidence Analysis Training Program Course Announcement 4 

3444 Financial Products Seminar Announcement 4 

3452 Q&A For Tax Professionals Brochure 2 

3453 Thank You for Not Filing 6 
Enclosure II 

69 GAO-01-301R Information on Federal Tax System 

No. Publication 

Number 

of pages 

3512 Innocent Spouse Relief (Brochure) 2 

3518 Beauty Industry Federal Tax Guidelines 2 

3528 Attention! Form 1040 and 1040A Filers Poster 1 

3559 The New IRS Stands UP What the Modernized Agency Means for You 102 

3614 Application for Memorandum of Agreement Debt Indicator 11 

3618 Taxpayer Advocate Service-FY2001 Objectives 13 

8300 Report of Cash Payments Over $10,000 Received in a Trade or Business 6 

Total pages 13,352 

Sources: IRS’ 1999 Federal Tax Products on CD-ROM (release 99.2), IRS Forms and Publications Internet site, IRS’

Published Product Catalog (rev. 11-99), and Research Institute of America list of official IRS publications (4-18-2000). 

Question 7: What worksheets were contained in the instructions to IRS forms as of 

1999? 

IRS provided the following list and categorization of 159 worksheets contained in IRS 

instructions as of August, 1999. IRS officials said the list includes all worksheets contained in the 

instructions to public-use forms and schedules. 

INDIVIDUAL WORKSHEETS 

Form 1040 US Individual Income Tax Return

• State and local income tax refund worksheet 

• Simplified method worksheet (pensions and annuities) 

• Social Security benefits worksheet 

• IRA deduction worksheet 

• Student loan interest deduction 

• Self-employed health insurance deduction worksheet 

• Standard deduction worksheet for dependents 

• Deduction for exemptions worksheet 

• Capital gains tax worksheet 

• Child tax credit questionnaire 

• Child tax credit worksheet 

• Worksheet to determine whether filer should fill in Form 6251 (Alternative Minimum Tax) 

• Earned income credit questionnaire 

• Worksheet A--earned income credit (EIC) 

• Worksheet B--earned income credit (EIC) 

Schedule A (Form 1040) Itemized Deductions

• Itemized deductions worksheet 

Schedule C-EZ (Form 1040) Net Profit for Business (Sole Proprietorship)

• Optional worksheet for line 2 

Schedule D (Form 1040) Capital Gains and Losses

• Capital loss carryover worksheet--line 18 

• Unrecaptured section 1250 gain worksheet--line 25 

Schedule R (Form 1040) Credit for the Elderly or the Disabled

• Credit limit worksheet--line 20 
Enclosure II 

70 GAO-01-301R Information on Federal Tax System 

Form 1040A U.S. Individual Income Tax Return

• Simplified method worksheet for pensions and annuities 

• Social Security benefits worksheet 

• IRA deduction worksheet 

• Student loan interest deduction worksheet 

• Standard deduction worksheet for dependents 

• Child tax credit questionnaire 

• Child tax credit worksheet 

• Alternative minimum tax worksheet 

• Earned income credit questionnaire 

• Earned income credit worksheet 

Schedule 3 (Form 1040A) Credit for the Elderly or the Disabled for Form 1040A Filers

• Credit limit worksheet--line 20 

Form 1040-C (2000) U.S. Departing Alien Income Tax Return

• Itemized deductions worksheet 

• Deduction for exemptions worksheet 

Form 1040-ES (OCR) (2000) Estimated Tax for Individuals

• Record of estimated tax payments 

• Estimated tax worksheet 

Form 1040-ES (NR) (2000) U.S. Estimated Tax for Nonresident Alien Individuals

• Record of estimated tax payments 

• Estimated tax worksheet for nonresident alien individuals 

Form 1040-ES (2000), Estimated Tax for Individuals

• Estimated tax worksheet 

• Record of estimated tax payments 

Form 1040EZ Income Tax for Single and Joint Filers With No Dependents

• Social Security benefits worksheet 

• EIC qualification 

• EIC worksheet 

Form 1040NR U.S. Nonresident Alien Income Tax Return

• Simplified Method worksheet 

• Student loan interest deduction worksheet 

• Self-employed health insurance deduction worksheet 

• Deduction for exemptions worksheet 

• Capital gains tax worksheet 

• Itemized deductions worksheet 

Form l040NR-EZ U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents

• Student loan interest deduction worksheet 

Form 1045 Application for Tentative Refund

• Itemized deductions limitation worksheet 

Form 1116 Foreign Tax Credit (Individual, Estate, Trust, or Nonresident Alien Individual)

• Worksheet for lump-sum distributions 
Enclosure II 

71 GAO-01-301R Information on Federal Tax System 

• Worksheet A (capital gains) 

• Worksheet B (capital losses) 

• Worksheet for unrecaptured section 1250 gain 

• Worksheet for home mortgage interest 

• Worksheet for line 17 

Form 2106 Employee Business Expense

• Employer reimbursement worksheet 

Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts

• List your payments for 1999 

• Part I -- annualized income installments, line 6 worksheet 

• Part I -- annualized income installments, line 10 worksheet 

Form 2555 Foreign Earned Income

• Housing deduction carryover worksheet 

Form 3903 Moving Expenses

• Distance test worksheet 

Form 4972 Tax on Lump-Sum Distributions

• NUA worksheet 

• Death benefit worksheet 

• Step 5, worksheet for line 37 

Form 6198 At-Risk Limitations

• Line 11 Worksheet--Figure your investment in the activity at the effective date 

• Line 12 Worksheet--Figure your total losses from years before the effective date 

• Line 16 Worksheet (item 8)--Figure excess depletion deduction 

Form 6251 Alternative Minimum Tax--Individuals

• Exemption worksheet--Line 22 

Form 8582-CR Passive Activity Credit Limitations

• Worksheet 1 for lines la and lb 

• Worksheet 2 for lines 2a and 2b 

• Worksheet 4 for lines 4a and 4b 

• Worksheet 5 for credits on line Ia or lb 

• Worksheet 6 for credits on line 2a or 2b 

• Worksheet 7 for credits on line 3a or 3b 

• Worksheet 8--Allocation of unallowed credits 

• Worksheet 9--Allowed credits 

The instructions for some of the lines of Form 8532-CR include "worksheet-like" tables to be filled in, 

although they are not labeled as worksheets. Relevant lines and table locations are 

• Line 6 (top of page 10) 

• Line 15 (top of page 11) 

• Line 27 (left column of page 12) 

• Line 35 (center column of page 12) 

Form 8606 Nondeductible IRAs

• Maximum Roth IRA contribution worksheet 

• Roth IRA basis worksheet 

• Ed IRA worksheet 
Enclosure II 

72 GAO-01-301R Information on Federal Tax System 

Form 8615 Tax for Children Under Age 14 Who Have Investment Income of More Than $1400

• Child's investment income worksheet--line 1 

Form 8815 Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989

• Line 6 worksheet 

• Line 9 worksheet 

Form 8839 Qualified Adoption Expenses

• Exclusion of prior year benefits worksheet 

• Credit carry-forward worksheet 

• Modified AGI worksheet 

Form 8853 Medical Savings Accounts & Long-Term Care Insurance Contracts

• Line 3 limitation worksheet 

• Line 13b additional tax worksheet 

Tele-File Package

• Tele-File EIC worksheet 

• Tele-File Tax Record 

CORPORATE WORKSHEETS 

Form 990-C Farmers' Cooperative Income Tax Return

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 

Form 1120/1120-A U.S. Corporation Income Tax Return

• cost of goods sold worksheet for Form 1120-A filers 

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 

Form 1120-F U.S. Income Tax Return of a Foreign Corporation

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 

Form 1120-FSC U.S. Income Tax Return of a Foreign Sales Corporation

• worksheet for computation of total foreign trading gross receipts if it includes commission income 

• worksheet for computation of dividends received and dividends-received deduction 

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 

Form 1120-IC-DISC Interest Charge Domestic International Sales Corporation Return

• worksheet for computation of dividends-received deduction after limitation 

• worksheet for computation of qualified export receipts 

Form 1120-L U.S. Life Insurance Company Income Tax Return

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 

 Form 1120-PC U.S. Property and Casualty Insurance Company Income Tax Return

• worksheet for computation of dividends-received deduction after limitation 

• tax computation worksheet for members of a controlled group 
Enclosure II 

73 GAO-01-301R Information on Federal Tax System 

 Form 1120-POL U.S. Income Tax Return for Certain Political Organizations

• tax computation worksheet for principal campaign committees 

 Form 1120-REIT U.S. Income Tax Return for Real Estate Investment Trusts

• tax computation worksheet for members of a controlled group 

Form 1120-RIC U.S. Income Tax Return for Regulated Investment Companies

• tax computation worksheet for members of a controlled group 

Form 4562 Depreciation and Amortization

• worksheet to figure depreciation 

Form 4626 Alternative Minimum Tax - Corporations

• worksheet to compute adjusted current earnings 

Form 5300 Application for Determination for Employee Benefit Plan

• worksheet for partial termination of plan 

Form 5303 Application for Determination for Collectively Bargained Plan

• worksheet for partial termination of plan 

Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations

• worksheet to compute shareholder’s pro rata share of subpart F income 

• worksheet to compute shareholder’s pro rata share of a CFC invested in U.S. property 

• worksheet to compute shareholder’s pro rata share of previously excluded subpart F income of a 

CFC withdrawn from qualified investments in less developed countries and from qualified 

investments in foreign base company shipping operations 

• worksheet to compute shareholder’s pro rata share of previously excluded export trade income of 

a CFC withdrawn from investment in export trade assets 

Form 8810 Corporate Passive Activity Loss and Credit Limitations

• worksheet to compute total current year income, gains, deductions, and losses, from passive 

activities 

• worksheet to compute overall passive activity gain or loss 

• worksheet to allocate unalloyed passive activity deductions and losses 

• worksheet to compute allowed deductions and losses 

• worksheet to compute current year and prior year passive activity credits 

• worksheet to compute tax attributable to net passive income 

• worksheet to compute tax attributable to net active income 

MISCELLANEOUS WORKSHEETS (Includes worksheets for estate, excise, employment, pass-through 

entity, and foreign-language forms.) 

Form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return

• worksheet for figuring reduced FUTA tax credit for state unemployment contributions paid late 

Form 940-PR Planilla Para La Declaracion Annual Del Patrono La Contribicion Federal Para El 

Desempleo (FUTA)

• worksheet for figuring reduced FUTA tax credit for state unemployment contributions paid late 

Form 1040-ES (Espanol) Contribuciones Federales Estimadas del Trabajo por Cuenta Propia Y Sobre 

El Empleo de Empleados Domesticos--Puerto-Rico

• worksheet for figuring quarterly estimated tax payments 
Enclosure II 

74 GAO-01-301R Information on Federal Tax System 

Form 2290 Heavy Highway Vehicle Use Tax Return

• worksheet for figuring tax on an increase in taxable gross weight 

Form 8027 Employer's Annual Information Return of Tip Income and Allocated Tips

• employers’ optional worksheet for tipped employees 

Form 706 United States Estate (and Generation Skipping Transfer) Tax Return

• Taxable gifts reconciliation 

• Adjusted taxable gifts 

• Gift tax on gifts made after 1976 

• Adjusted taxable estate 

• Credit for tax on prior transfers 

Form 706 NA, United States Estate (and Generation-Skipping Transfer) Tax Return

• Line 4 worksheet 

• Line 5 worksheet 

Form 990 (Sch. A) Organization Exempt Under Section 501(C )(3)

• Accrual to cash conversion 

Form 990 PF Return of Private Foundation or Section 4947 (a) (1) Nonexempt Charitable Trust 

Treated as a Private Foundation

• Program service revenue 

Form 990 W Estimated Tax on Unrelated Business Taxable Income for Tax-Exempt Organizations

• Entire form is a worksheet 

Form 1041 US Income Tax for Estates and Trusts

• Unrecaptured section 1250 gain 

• Capital loss carryover 

Form 1041ES (OCR) Estimated Income Tax for Estates and Trusts

• Entire product is a worksheet 

Form 1065 US Partnership Return of Income

• Net earnings (loss) from self-employment 

Form 1065B US Return of Income for Electing Large Partnerships

• Net earnings (loss) from self-employment 

• Unrecaptured section 1250 gain 

Form 1120S Income Tax Return for an S corporation

• Excess net passive income tax 

• Schedule M-2 worksheet 

Form 5227 Split-Interest Trust Information

• Capital gains distributions 

Form 8609 (Sch A) Annual Statement

• Section 42 (f) (3) (B) worksheet 

Form 8611 Recapture of Low-Income Housing Credit

• Line 2 worksheet 
Enclosure II 

75 GAO-01-301R Information on Federal Tax System 

Form 8693 Low Income Housing Credit Disposition Bond

• Bond amount worksheet 

Form(s) 8804, 8805, 8813 returns associated with partnership withholding taxes

• Installment payments 

Form 8828, Recapture of Federal Mortgage Subsidy

• Holding period percentage 

Form 8865 Return of US Persons With Respect to Certain Foreign Partnerships

• Net earnings (loss) from self-employment 

Question 8: What is IRS’ methodology for estimating the time required for taxpayers to 

complete IRS forms and schedules?

To measure the paperwork dimension of compliance burden,1

 IRS sponsored a study in 1984 that 

has been the basis of its burden estimation methodology since that time. Arthur D. Little, Inc. 

(ADL), an IRS contractor, released the results of the paperwork burden study in 1988. 

The ADL model was designed to meet reporting requirements arising from the Paperwork 

Reduction Act. Pursuant to the act, the Office of Management and Budget (OMB) established the 

annual Information Collection Budget and required federal agencies to provide estimates of the 

paperwork burdens that they impose on the public.2

The methodological approach used in the ADL study provides a set of burden equations for each 

tax form or schedule, one for each of several major taxpayer paperwork activities (e.g., 

recordkeeping, learning about the law or form, preparing the form and sending it to IRS). Each 

equation, developed from regression analysis of taxpayer survey data, recognizes basic 

characteristics of forms and instructions, form and line usage by taxpayers, and characteristics 

of the taxpayer population using the forms. These equations permit IRS to estimate the burden 

for any year, past or future, by describing the characteristics of the forms and instructions, as 

well as the populations of taxpayers using those forms. 

As we have reported, IRS’ ADL model for estimating taxpayer paperwork compliance burden 

was, when first introduced in the 1980s, considered a substantial improvement over the agency’s 

previous methodology.3

 However, IRS and other observers have identified several significant 

shortcoming of the model that limit its usefulness and accuracy. The reported limitations of the 

model and its estimates can be categorized into four areas: (1) the age of the underlying survey 

data, (2) the exclusion of certain components of burden, (3) the model’s simplistic treatment of 

the determinants of burden, and (4) the questionable statistical validity and poor documentation 

of the estimates. 

 

1

According to PricewaterhouseCoopers (PwC), taxpayer compliance burden is the cost to the taxpayer of compliance with the 

regulations and laws related to payment of taxes. 

2

The Information Collection Budget is the means by which the federal government, through OMB, measures and controls the number 

of hours that individuals, businesses, state and local governments, and others must spend complying with federal reporting 

requirements. The Information Collection Budget is prepared annually based upon the prior fiscal year’s experience and current 

estimates of the “burden hours” imposed by individual forms, surveys, and other information collections. 

3

Tax Administration: IRS Is Working to Improve Its Estimates of Compliance Burden (GAO/GGD-00-11, May 22, 2000). 
Enclosure II 

76 GAO-01-301R Information on Federal Tax System 

In an effort to provide more reliable paperwork burden estimates, IRS contracted with 

PricewaterhouseCoopers (PwC) to develop new burden models for the prefiling and filing 

burdens of taxpayers with Wage and Investment (W&I) income (expected delivery is September 

2001). As part of this effort, PwC is to provide IRS with paperwork burden estimates for the W&I 

taxpayer group. PWC is also to develop a model for the postfiling burden of individual taxpayers 

(expected delivery is fall 2002). Finally, IRS also plans to develop burden models for taxpayers 

with income from self-employment (expected delivery is fall 2002). The initial focus is on 

taxpayers with W&I income because they bear a large portion of the overall compliance burden 

and because their burden may be easiest to estimate. 

The PwC models are intended to provide more reliable and comprehensive estimates of 

taxpayers’ federal income tax compliance burdens than currently exist. They are also intended to 

allow IRS to better analyze the impact of tax law changes on those burdens.
Enclosure III 

77 GAO-01-301R Information on Federal Tax System 

Information on the Number and Type 

of Tax Filers in the United States

Question 9: What number and percentage of the U.S. population filed tax returns or 

were claimed as dependents in 1990, 1995, and 1997?

Table III.1 shows the number of U.S. residents or citizens claimed as exemptions on income tax 

returns—as filers or dependents---compared to the total U.S. population.4

 Individuals who file a 

return and are counted as dependents on another return should not be double-counted in this 

data because they cannot claim a personal exemption on their own return. 

Table III.1: Number of Individual Tax Filers and Dependents Compared to U.S. Population 

Numbers in thousands

Year Filersa

 Dependents 

Total filers and 

dependents 

U.S. 

populationb

Total as percent of 

U.S. population 

1990 151,769 75,780 227,549 248,659 91.5 

1995 157,127 80,038 237,164 261,906 90.6 

1997 160,310 80,970 241,279 266,840 90.4 a

Includes secondary filers in the case of joint returns. 

b

Estimated U.S. population, including U.S. residents and U.S. military personnel stationed abroad. 

Source: IRS Statistics of Income (SOI) and U.S. Census data. 

Question 10: How many income tax returns were filed unnecessarily in 1990, 1995, and 

1999? 

IRS considers returns that are not legally required and meet certain other criteria to be 

unnecessary returns. In particular, IRS considers a return to be unnecessary if it 

• is filed by a U.S. resident with income below the filing threshold; 

• reports zero tax liability; 

• includes no schedules A, C, D, E, F, or form 4797 (supplemental gain or loss); and 

• claims no loss or credits. 

Table III.2 shows limited IRS data on individual returns filed unnecessarily in 1999. According to 

IRS officials, the data are limited to filers younger than 24 and pensioners older than 64 in order 

to exclude filers who might be eligible for the Earned Income Credit (EIC). EIC claimants must 

file a return even if they have no tax liability. IRS does not have comparable data for years prior 

to 1999.

5

 

4

U.S. population data excludes some individuals who are generally required to file tax returns, particularly U.S. citizens living abroad 

who are not members of U.S. armed forces. Conversely, some individuals in the U.S. population are not counted as filers or 

dependents on tax returns, particularly individuals who are not required to file because their income falls below specified filing 

thresholds. 

5

IRS published data on nonfiling in tax years 1979-1991 in a November 1996 study titled “The Determinants of Individual Income Tax 

Compliance: Estimating the Impacts of Tax Policy, Enforcement, and IRS Responsiveness.” The study estimated that about 14 percent 

of all individual returns filed in 1979-1991 were not required. However, returns filed solely to claim the EIC were counted as “not 

required.”
Enclosure III 

78 GAO-01-301R Information on Federal Tax System 

Table III.2: IRS Data on Certain Returns Filed Unnecessarily in 1999 

Category Unnecessary returns 

Filing for refund, age 15 to 23 3,315,502 

Filing for refund, pensioners age 65 or older 318,512 

No refund claimed, age 15 to 23 or 65 or older 538,503 

Total 4,171,517 

Source: IRS data. 

Most of the unnecessary returns were filed to claim refunds, generally by people who were from 

15 to 23 years old. However, the returns claiming refunds generally would not have been required 

if taxes had not been withheld. IRS advised these taxpayers to adjust their withholding 

appropriately using form W-4, employee’s withholding allowance certificate, or W-4P, 

withholding certificate for pension or annuity payments.6

Question 11: Provide the number of corporate returns, total assets, and receipts for the 

most recent tax years available. 

Table III.3 summarizes the number of corporate returns (1120 series returns), total assets, and 

total receipts for tax years 1990 through 1997. Tables III.4 through III.11 show the type and 

number of corporate returns, assets, and receipts by Statistics of Income (SOI) industry 

classification, for tax years 1990 through 1997. Tables III.12 through III.19 show the type and 

number of corporate returns, assets, and receipts based on the size of corporate assets.

Table III.3: Corporate Returns, Assets, and Receipts, Tax Years 1990 -1997 

Dollars in thousands 

Tax year Number of returnsa

 Total assets Total receipts 

1990 3,716,650 $18,190,057,608 $11,409,520,074 

1991 3,802,788 19,029,508,838 11,440,090,940 

1992 3,869,023 21,156,667,015 11,742,134,728 

1993 3,964,629 21,815,869,373 12,269,721,710 

1994 4,342,368 23,446,206,585 13,360,007,156 

1995 4,474,167 26,013,689,000 14,539,050,114 

1996 4,631,370 28,642,263,127 15,525,718,006 

1997 4,710,083 33,029,652,126 16,609,707,302 a

The types of returns are the 1120, 1120A, 1120S, and other types of 1120s that cannot be identified separately. 

Source: IRS Statistics of Income (SOI) bulletins and tapes (corporate). 

 

6

Certain taxpayers—such as those who had a tax liability in the prior year—are not allowed to claim exemption from withholding. 
Enclosure III 

79 GAO-01-301R Information on Federal Tax System 

Table III.4: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1990 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 61,070 $46,596,769 $61,033,772 

 1120A 10,121 660,464 870,090 

 1120S 54,971 21,081,149 26,108,382 

 Other 261 0 88,821 

Total 126,423 $68,338,381 $88,101,065 

Mining 1120 19,938 207,932,227 99,534,663 

 1120A 3,348 120,144 208,992 

 1120S 16,030 11,145,270 11,069,493 

 Other 358 0 631,308 

Total 39,674 $219,197,640 $111,444,457 

Construction 1120 224,132 172,696,135 364,543,839 

 1120A 24,652 885,091 2,999,161 

 1120S 158,045 70,247,799 166,931,987 

 Other 45 0 179,056 

Total 406,874 $243,829,026 $534,654,044 

Manufacturing 1120 173,539 3,782,400,230 3,387,349,097 

 1120A 14,591 824,356 1,509,842 

 1120S 113,289 138,099,169 297,357,534 

 Other 250 0 2,477,421 

Total 301,669 $3,921,323,756 $3,688,693,895 

Transportation and public utilities 1120 82,684 1,488,322,086 873,733,416 

 1120A 13,536 601,578 1,251,838 

 1120S 63,957 33,122,074 60,312,629 

 Other 175 0 979,179 

Total 160,353 $1,522,045,738 $936,277,062 

Wholesale and retail trade 1120 543,500 1,213,733,809 2,488,261,203 

 1120A 59,308 2,902,470 7,065,162 

 1120S 419,833 230,660,549 777,891,194 

 Other 417 0 35,770,778 

Total 1,023,057 $1,447,296,828 $3,308,988,335 

Finance, insurance and real estate 1120 307,144 7,559,597,702 1,277,605,653 

 1120A 43,206 2,617,296 2,243,070 

 1120S 241,530 140,175,319 60,388,316 

 Other 17,258 2,490,905,040 614,472,612 

Total 609,138 $10,193,295,357 $1,954,709,651 

Services 1120 427,225 470,444,279 550,197,705 

 1120A 99,884 3,121,212 8,559,984 

 1120S 501,733 99,276,776 219,873,675 

 Other 606 0 698,245 

Total 1,029,447 $572,842,266 $779,329,609 

Not allocable 1120 9,268 1,243,267 6,371,197 

 1120A 4,957 145,703 179,458 

 1120S 5,705 499,647 769,452 

 Other 87 0 1,848 

Total 20,017 $1,888,616 $7,321,955 

Grand total 3,716,650 $18,190,057,608 $11,409,520,074 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes.
Enclosure III 

80 GAO-01-301R Information on Federal Tax System 

Table III.5: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1991 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 62,130 $45,474,938 $57,416,219 

 1120A 8,929 823,735 649,550 

 1120S 58,594 21,457,880 27,795,647 

 Other 233 0 84,285 

Total 129,886 $67,756,553 $85,945,700 

Mining 1120 18,721 198,004,853 90,739,991 

 1120A 4,054 254,029 331,884 

 1120S 16,126 11,373,512 10,743,329 

 Other 298 3,330,441 1,471,084 

Total 39,199 $212,962,835 $103,286,287 

Construction 1120 218,618 156,857,781 336,706,508 

 1120A 21,256 751,944 2,033,074 

 1120S 177,070 70,377,307 165,539,264 

 Other 43 15,048,907 10,849,686 

Total 416,987 $243,035,939 $515,128,533 

Manufacturing 1120 168,067 3,308,840,876 3,055,226,090 

 1120A 16,332 815,999 1,775,013 

 1120S 115,417 140,079,028 300,579,225 

 Other 305 578,624,135 300,920,979 

Total 300,122 $4,028,360,038 $3,658,501,307 

Transportation and public utilities 1120 82,666 1,344,334,743 819,495,141 

 1120A 12,148 499,358 1,061,162 

 1120S 70,009 35,012,540 63,753,848 

 Other 158 193,977,625 70,634,440 

Total 164,980 $1,573,824,265 $954,944,592 

Wholesale and retail trade 1120 542,568 1,040,209,532 2,354,852,411 

 1120A 55,640 2,378,000 6,518,492 

 1120S 444,791 236,686,705 821,865,946 

 Other 536 204,153,670 197,362,123 

Total 1,043,534 $1,483,427,907 $3,380,598,972 

Finance, insurance and real estate 1120 301,612 4,669,350,609 684,789,204 

 1120A 42,132 2,827,372 2,143,194 

 1120S 254,937 144,758,056 54,816,499 

 Other 18,876 5,963,745,239 1,186,184,899 

Total 617,557 $10,780,681,276 $1,927,933,796 

Services 1120 415,016 494,693,769 537,262,497 

 1120A 98,581 3,165,556 8,987,260 

 1120S 547,414 108,433,973 235,890,633 

 Other 646 30,458,276 27,584,078 

Total 1,061,657 $636,751,574 $809,724,469 

Not allocable 1120 11,284 1,161,460 1,871,031 

 1120A 3,577 77,031 153,032 

 1120S 13,913 1,469,960 2,000,186 

 Other 94 0 3,037 

Total 28,868 $2,708,451 $4,027,285 

Grand total 3,802,788 $19,029,508,838 $11,440,090,940 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

81 GAO-01-301R Information on Federal Tax System 

Table III.6: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1992 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 63,422 $47,684,286 $62,022,300 

 1120A 9,158 812,366 904,687 

 1120S 65,055 23,264,119 32,553,498 

 Other 198 1,196,522 82,555 

Total 137,833 $72,957,293 $95,563,041 

Mining 1120 18,910 206,054,715 100,049,587 

 1120A 1,856 176,325 202,354 

 1120S 15,563 11,980,729 11,918,122 

 Other 331 3,594,531 660,659 

Total 36,660 $221,806,300 $112,830,722 

Construction 1120 204,028 162,725,519 327,994,370 

 1120A 25,040 962,236 3,894,407 

 1120S 178,761 67,362,355 167,362,892 

 Other 51 226,489 153,365 

Total 407,881 $231,276,599 $499,405,033 

Manufacturing 1120 166,521 3,960,285,844 3,429,546,233 

 1120A 15,470 914,973 2,067,136 

 1120S 117,812 151,922,987 326,547,950 

 Other 268 1,959,906 2,104,518 

Total 300,071 $4,115,083,710 $3,760,265,837 

Transportation and public utilities 1120 89,352 1,604,097,067 925,949,677 

 1120A 13,944 573,587 1,212,389 

 1120S 74,886 37,327,173 70,076,118 

 Other 101 6,847,737 402,396 

Total 178,284 $1,648,845,564 $997,640,581 

Wholesale and retail trade 1120 522,727 1,327,803,906 2,594,665,593 

 1120A 62,270 3,055,197 8,049,350 

 1120S 467,234 251,051,668 889,290,904 

 Other 482 4,299,092 11,938,549 

Total 1,052,713 $1,586,209,863 $3,503,944,396 

Finance, insurance and real estate 1120 298,477 7,971,744,199 1,194,314,841 

 1120A 45,499 3,364,567 2,661,104 

 1120S 273,415 148,211,301 61,223,859 

 Other 17,877 4,491,253,610 642,228,420 

Total 635,268 $12,614,573,677 $1,900,428,224 

Services 1120 408,786 541,988,632 596,543,596 

 1120A 103,937 3,339,396 10,556,599 

 1120S 587,071 116,253,091 261,504,463 

 Other 656 2,360,697 928,764 

Total 1,100,449 $663,941,817 $869,533,422 

Not allocable 1120 10,711 1,188,717 934,435 

 1120A 3,523 65,855 182,229 

 1120S 5,574 717,252 1,405,155 

 Other 56 369 1,654 

Total 19,864 $1,972,193 $2,523,472 

Grand total 3,869,023 $21,156,667,015 $11,742,134,728 

Notes: Details may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

82 GAO-01-301R Information on Federal Tax System 

Table III.7: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1993 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 66,892 $47,993,419 $62,065,920 

 1120A 9,479 748,702 1,007,817 

 1120S 64,764 25,904,714 35,129,407 

 Other 191 0 97,932 

Total 141,326 $74,646,834 $98,301,076 

Mining 1120 16,232 210,072,067 99,078,355 

 1120A 2,147 70,341 178,172 

 1120S 16,645 13,876,252 12,545,527 

 Other 322 0 319,095 

Total 35,345 $224,018,659 $112,121,150 

Construction 1120 199,571 165,528,004 339,982,362 

 1120A 25,160 1,022,455 3,899,076 

 1120S 192,495 73,885,115 194,263,829 

 Other 24 0 120,984 

Total 417,250 $240,435,575 $538,266,252 

Manufacturing 1120 162,609 4,063,749,417 3,532,911,796 

 1120A 17,447 924,522 2,367,862 

 1120S 127,046 160,460,456 352,827,742 

 Other 317 0 2,639,871 

Total 307,419 $4,225,134,395 $3,890,747,271 

Transportation and public utilities 1120 88,560 1,730,959,567 957,338,187 

 1120A 10,427 448,157 1,017,053 

 1120S 76,855 39,283,927 78,223,735 

 Other 137 0 577,463 

Total 175,979 $1,770,691,651 $1,037,156,438 

Wholesale and retail trade 1120 524,690 1,427,478,659 2,721,121,036 

 1120A 50,504 2,664,597 7,310,093 

 1120S 497,321 272,690,248 969,967,843 

 Other 465 0 11,095,772 

Total 1,072,980 $1,702,833,504 $3,709,494,744 

Finance, insurance and real estate 1120 292,007 8,715,368,706 1,184,491,382 

 1120A 43,612 3,084,385 2,778,753 

 1120S 286,428 158,740,491 64,830,031 

 Other 19,350 3,954,486,754 688,215,573 

Total 641,397 $12,831,680,336 $1,940,315,739 

Services 1120 418,559 615,780,673 640,963,067 

 1120A 103,894 4,045,402 10,617,669 

 1120S 634,555 124,888,291 289,074,655 

 Other 716 43,895 987,473 

Total 1,157,724 $744,758,261 $941,642,864 

Not allocable 1120 6,812 1,024,100 907,970 

 1120A 2,957 76,588 33,015 

 1120S 5,395 569,470 734,035 

 Other 44 0 1,156 

Total 15,208 $1,670,158 $1,676,176 

Grand total 3,964,629 $21,815,869,373 $12,269,721,710 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes.
Enclosure III 

83 GAO-01-301R Information on Federal Tax System 

Table III.8: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1994 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 67,723 $52,527,642 $63,903,925 

 1120A 7,721 778,816 808,166 

 1120S 71,336 26,586,848 36,139,788 

 Other 217 0 55,273 

Total 146,996 $79,893,306 $100,907,153 

Mining 1120 17,910 225,728,103 104,199,119 

 1120A 2,390 115,686 234,463 

 1120S 14,726 13,883,922 10,998,013 

 Other 344 0 255,712 

Total 35,371 $239,727,711 $115,687,307 

Construction 1120 209,202 166,749,140 371,915,271 

 1120A 22,360 912,281 3,203,521 

 1120S 201,354 81,432,123 217,455,805 

 Other 49 0 185,793 

Total 432,965 $249,093,544 $592,760,390 

Manufacturing 1120 167,304 4,348,354,136 3,824,435,542 

 1120A 15,244 817,498 1,641,592 

 1120S 129,408 176,284,292 389,844,284 

 Other 428 0 2,870,164 

Total 312,383 $4,525,455,926 $4,218,791,582 

Transportation and public utilities 1120 93,605 1,783,185,523 1,014,766,902 

 1120A 10,582 483,445 1,066,907 

 1120S 82,080 42,603,946 86,185,775 

 Other 207 0 1,192,670 

Total 186,474 $1,826,272,914 $1,103,212,254 

Wholesale and retail trade 1120 534,970 1,494,860,380 2,953,074,353 

 1120A 52,742 2,909,182 7,111,128 

 1120S 517,812 297,397,978 1,075,844,032 

 Other 838 0 16,196,303 

Total 1,106,363 $1,795,167,539 $4,052,225,816 

Finance, insurance and real estate 1120 307,098 9,512,417,378 1,227,731,152 

 1120A 40,570 3,026,786 2,818,458 

 1120S 314,490 167,295,993 71,621,176 

 Other 19,512 4,212,554,388 674,320,562 

Total 681,671 $13,895,294,545 $1,976,491,348 

Services 1120 632,740 692,050,201 864,052,984 

 1120A 102,683 3,766,927 10,877,419 

 1120S 687,981 137,566,662 322,211,588 

 Other 989 545,766 887,959 

Total 1,424,394 $833,929,557 $1,198,029,951 

Not allocable 1120 8,318 672,182 1,208,011 

 1120A 2,833 71,386 48,601 

 1120S 4,566 627,976 644,883 

 Other 36 0 -139 

Total 15,753 $1,371,544 $1,901,355 

Grand total 4,342,368 $23,446,206,585 $13,360,007,156 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes.
Enclosure III 

84 GAO-01-301R Information on Federal Tax System 

Table III.9: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1995 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 69,678 $56,751,716 $66,823,585 

 1120A 5,582 635,206 544,802 

 1120S 72,085 28,911,652 40,130,194 

 Other 181 0 83,392 

Total 147,527 $86,298,574 $107,581,973 

Mining 1120 17,588 253,187,311 113,004,446 

 1120A 2,481 152,009 329,081 

 1120S 14,794 15,350,694 13,232,848 

 Other 259 0 194,116 

Total 35,123 $268,690,014 $126,760,491 

Construction 1120 209,371 175,261,418 392,203,097 

 1120A 24,294 971,834 3,536,898 

 1120S 216,192 89,579,364 241,113,967 

 Other 25 0 236,233 

Total 449,882 $265,812,616 $637,090,195 

Manufacturing 1120 167,717 4,749,671,143 4,149,538,439 

 1120A 12,814 671,020 1,578,328 

 1120S 138,856 190,730,367 431,543,312 

 Other 312 0 2,889,682 

Total 319,699 $4,941,072,530 $4,585,549,761 

Transportation and public utilities 1120 88,840 1,855,053,047 1,059,835,879 

 1120A 13,658 774,105 1,234,751 

 1120S 91,822 47,386,627 94,665,458 

 Other 137 0 973,890 

Total 194,456 $1,903,213,778 $1,156,709,979 

Wholesale and retail trade 1120 540,532 1,601,121,609 3,150,739,335 

 1120A 53,845 2,889,985 7,414,448 

 1120S 537,539 315,706,230 1,137,934,320 

 Other 493 0 14,258,843 

Total 1,132,409 $1,919,717,823 $4,310,346,947 

Finance, insurance and real estate 1120 297,158 10,528,900,727 1,439,265,218 

 1120A 42,146 3,293,255 2,722,062 

 1120S 326,149 178,161,843 77,811,520 

 Other 17,759 4,966,930,804 758,305,124 

Total 683,211 $15,677,286,629 $2,278,103,923 

Services 1120 648,833 795,137,293 956,100,144 

 1120A 100,903 3,662,857 10,566,968 

 1120S 753,890 151,374,381 368,278,859 

 Other 604 562,926 748,588 

Total 1,504,230 $950,737,457 $1,335,694,559 

Not allocable 1120 4,102 461,435 836,200 

 1120A 1,716 6,447 13,061 

 1120S 1,791 391,697 362,984 

 Other 22 0 42 

Total 7,631 $859,578 $1,212,287 

Grand total 4,474,167 $26,013,689,000 $14,539,050,114 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

85 GAO-01-301R Information on Federal Tax System 

Table III.10: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1996 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 67,748 $60,974,193 $70,455,220 

 1120A 8,315 736,319 731,752 

 1120S 82,712 32,429,606 48,474,500 

 Other 188 0 75,586 

Total 158,963 $94,140,118 $119,737,058 

Mining 1120 18,702 283,290,899 126,378,540 

 1120A 918 32,474 138,170 

 1120S 15,950 15,782,858 14,563,056 

 Other 230 0 198,325 

Total 35,799 $299,106,231 $141,278,092 

Construction 1120 215,293 184,381,909 429,938,275 

 1120A 21,852 934,227 3,572,600 

 1120S 234,047 99,279,070 276,283,862 

 Other 38 0 672,486 

Total 471,230 $284,595,206 $710,467,223 

Manufacturing 1120 170,608 5,222,776,316 4,445,128,547 

 1120A 13,571 805,383 1,638,695 

 1120S 141,171 201,602,874 450,440,118 

 Other 338 0 5,461,762 

Total 325,689 $5,425,184,573 $4,902,669,122 

Transportation and public utilities 1120 95,459 2,017,507,130 1,145,451,269 

 1120A 11,846 595,278 1,118,125 

 1120S 98,311 51,350,614 109,038,953 

 Other 161 0 1,402,293 

Total 205,777 $2,069,453,023 $1,257,010,639 

Wholesale and retail trade 1120 532,505 1,677,979,920 3,240,774,315 

 1120A 52,585 2,722,487 7,159,213 

 1120S 556,908 335,529,756 1,225,474,736 

 Other 493 0 16,665,343 

Total 1,142,491 $2,016,232,163 $4,490,073,608 

Finance, insurance and real estate 1120 303,882 9,607,200,988 1,019,756,495 

 1120A 42,265 3,481,094 2,905,961 

 1120S 356,778 198,654,779 87,396,401 

 Other 20,828 7,550,716,303 1,296,796,393 

Total 723,754 $17,360,053,164 $2,406,855,250 

Services 1120 652,132 923,163,166 1,078,799,806 

 1120A 89,026 3,780,847 10,356,147 

 1120S 815,494 165,366,124 406,198,180 

 Other 750 0 861,419 

Total 1,557,401 $1,092,310,137 $1,496,215,552 

Not allocable 1120 6,011 808,901 1,081,711 

 1120A 1,159 14,358 105,108 

 1120S 3,046 365,255 224,366 

 Other 50 0 277 

Total 10,266 $1,188,514 $1,411,462 

Grand total 4,631,370 $28,642,263,127 $15,525,718,006 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

86 GAO-01-301R Information on Federal Tax System 

Table III.11: Type and Number of Corporate Returns, Assets, and Receipts by Industry Classification, 

Tax Year 1997 

Dollars in thousands 

Industry 

Type of 

return 

Number of 

returns Total assets Total receipts 

Agriculture, forestry, and fishing 1120 68,001 $56,883,963 $65,312,474 

 1120A 6,657 755,547 720,886 

 1120S 88,270 34,344,520 51,202,714 

 Other 186 0 151,480 

Total 163,114 $91,984,030 $117,387,555 

Mining 1120 14,942 306,809,895 135,073,518 

 1120A 1,407 54,773 137,183 

 1120S 16,403 17,430,158 14,976,849 

 Other 245 0 130,713 

Total 32,996 $324,294,826 $150,318,264 

Construction 1120 207,507 192,517,389 442,527,567 

 1120A 19,117 1,000,517 3,284,262 

 1120S 261,104 121,033,443 332,647,323 

 Other 55 0 555,321 

Total 487,783 $314,551,349 $779,014,473 

Manufacturing 1120 159,866 5,737,925,822 4,682,784,788 

 1120A 11,478 719,572 1,211,068 

 1120S 153,249 227,661,004 488,763,265 

 Other 452 0 4,904,648 

Total 325,045 $5,966,306,398 $5,177,663,769 

Transportation and public utilities 1120 92,946 2,159,711,862 1,214,337,276 

 1120A 10,464 648,219 815,019 

 1120S 105,803 58,659,212 114,202,022 

 Other 199 0 1,372,114 

Total 209,412 $2,219,019,293 $1,330,726,431 

Wholesale and retail trade 1120 519,142 1,574,495,536 3,343,104,740 

 1120A 46,375 2,330,815 6,321,061 

 1120S 583,006 371,105,598 1,337,278,598 

 Other 608 0 17,112,454 

Total 1,149,132 $1,947,931,949 $4,703,816,853 

Finance, insurance and real estate 1120 298,296 11,323,298,523 1,124,933,650 

 1120A 41,008 3,403,594 2,422,288 

 1120S 382,153 292,569,402 104,017,724 

 Other 23,089 9,286,348,384 1,479,896,174 

Total 744,545 $20,905,619,903 $2,711,269,836 

Services 1120 646,804 1,071,636,547 1,175,401,556 

 1120A 84,463 3,343,539 9,452,356 

 1120S 860,445 184,401,457 451,975,219 

 Other 1,141 0 1,758,773 

Total 1,592,854 $1,259,381,543 $1,638,587,903 

Not allocable 1120 2,361 269,276 733,868 

 1120A 971 25,066 13,874 

 1120S 1,821 268,493 173,806 

 Other 48 0 669 

Total 5,201 $562,836 $922,217 

Grand total 4,710,083 $33,029,652,126 $16,609,707,302 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Not allocable = Amounts cannot be allocated among the various categories above because the nature of the 

business cannot be determined. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

87 GAO-01-301R Information on Federal Tax System 

Table III.12: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1990 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 867,456 $27,490,466 $232,393,571 

 1120A 238,770 5,441,836 19,362,299 

 1120S 995,153 26,690,076 163,529,746 

 Other 10,455 17,076 115,893,008 

Total 2,111,834 $59,639,454 $531,178,624 

$100,000 to $1,000,000 1120 754,745 259,360,858 701,042,977 

 1120A 34,833 6,436,477 5,525,298 

 1120S 455,085 147,608,558 343,604,971 

 Other 1,348 618,962 412,985 

Total 1,246,011 $414,024,855 $1,050,586,231 

$1,000,000 to $10,000,000 1120 185,944 497,049,391 1,005,906,681 

 1120S 115,197 314,062,822 674,963,117 

 Other 2,636 10,214,583 5,159,120 

Total 303,777 $821,326,797 $1,686,028,918 

$10,000,000 to $25,000,000 1120 16,897 265,979,404 359,837,604 

 1120S 7,127 106,154,077 209,206,579 

 Other 1,132 18,877,589 4,795,523 

Total 25,156 $391,011,070 $573,839,707 

$25,000,000 to $50,000,000 1120 8,485 299,414,258 297,571,703 

 1120S 1,674 57,474,534 98,612,716 

 Other 862 31,315,251 6,422,169 

Total 11,020 $388,204,043 $402,606,589 

$50,000,000 to $100,000,000 1120 5,971 421,434,733 298,626,061 

 1120S 603 40,760,630 69,824,158 

 Other 822 59,428,590 12,840,398 

Total 7,396 $521,623,953 $381,290,617 

$100,000,000 to $250,000,000 1120 4,669 724,517,687 510,413,586 

 1120S 207 29,938,105 39,911,213 

 Other 967 156,500,529 27,530,312 

Total 5,843 $910,956,321 $577,855,111 

More than $250,000,000 1120 4,331 12,447,719,707 5,702,838,362 

 1120S 47 21,618,950 21,050,163 

 Other 1,235 2,213,932,460 482,245,753 

Total 5,613 $14,683,271,116 $6,206,134,278 

Grand total 3,716,650 $18,190,057,608 $11,409,520,074 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

88 GAO-01-301R Information on Federal Tax System 

Table III.13: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1991 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 854,206 $26,549,260 $208,772,144 

 1120A 228,140 5,252,189 18,360,979 

 1120S 1,083,486 29,011,567 184,041,109 

 Other 11,029 17,448 104,375,095 

Total 2,176,862 $60,830,464 $515,549,327 

$100,000 to $1,000,000 1120 743,369 254,528,794 670,523,553 

 1120A 34,508 6,340,835 5,291,682 

 1120S 486,200 157,262,910 361,151,218 

 Other 1,283 615,011 325,845 

Total 1,265,360 $418,747,551 $1,037,292,299 

$1,000,000 to $10,000,000 1120 183,846 488,261,172 974,220,226 

 1120S 118,752 321,778,394 692,794,086 

 Other 2,903 12,110,991 4,888,602 

Total 305,500 $822,150,557 $1,671,902,914 

$10,000,000 to $25,000,000 1120 16,347 257,757,522 348,114,104 

 1120S 7,229 107,606,767 209,458,221 

 Other 1,045 17,409,850 4,875,307 

Total 24,621 $382,774,138 $562,447,632 

$25,000,000 to $50,000,000 1120 8,375 295,775,691 285,242,379 

 1120S 1,736 60,012,318 100,515,119 

 Other 891 32,133,796 6,381,568 

Total 11,002 $387,921,806 $392,139,067 

$50,000,000 to $100,000,000 1120 5,972 421,103,865 308,468,259 

 1120S 595 39,682,124 64,452,028 

 Other 938 67,342,800 14,035,297 

Total 7,506 $528,128,788 $386,955,584 

$100,000,000 to $250,000,000 1120 4,527 701,281,755 476,689,956 

 1120S 217 30,545,835 47,030,466 

 Other 1,233 200,944,047 40,728,531 

Total 5,977 $932,771,637 $564,448,952 

More than $250,000,000 1120 4,037 8,813,670,502 4,666,328,471 

 1120S 56 23,749,045 23,542,330 

 Other 1,868 6,658,764,350 1,619,484,365 

Total 5,961 $15,496,183,898 $6,309,355,166 

Grand total 3,802,788 $19,029,508,838 $11,440,090,940 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

89 GAO-01-301R Information on Federal Tax System 

Table III.14: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1992 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 844,417 $26,286,796 $216,636,432 

 1120A 241,547 5,929,043 23,190,129 

 1120S 1,134,943 29,075,365 200,927,867 

 Other 3,514 82,148 5,282,102 

Total 2,224,420 $61,373,351 $446,036,529 

$100,000 to $1,000,000 1120 717,514 247,301,240 642,059,026 

 1120A 39,151 7,335,459 6,540,126 

 1120S 515,113 165,875,799 389,468,822 

 Other 5,166 2,241,306 976,446 

Total 1,276,944 $422,753,803 $1,039,044,420 

$1,000,000 to $10,000,000 1120 181,384 481,441,253 978,045,500 

 1120S 125,009 339,395,034 743,718,910 

 Other 4,706 16,463,459 6,814,754 

Total 311,098 $837,299,746 $1,728,579,164 

$10,000,000 to $25,000,000 1120 15,979 251,383,086 351,312,572 

 1120S 7,593 114,265,375 235,054,726 

 Other 1,140 18,794,624 4,820,152 

Total 24,712 $384,443,085 $591,187,450 

$25,000,000 to $50,000,000 1120 8,347 296,145,238 292,606,903 

 1120S 1,803 61,996,487 106,496,610 

 Other 1,103 39,564,879 6,138,514 

Total 11,253 $397,706,604 $405,242,028 

$50,000,000 to $100,000,000 1120 6,061 428,229,020 310,332,210 

 1120S 636 42,617,841 66,269,503 

 Other 1,085 78,113,483 10,959,493 

Total 7,783 $548,960,344 $387,561,206 

$100,000,000 to $250,000,000 1120 4,744 734,763,514 499,605,892 

 1120S 222 32,179,238 56,772,796 

 Other 1,326 215,548,494 27,191,115 

Total 6,292 $982,491,247 $583,569,803 

More than $250,000,000 1120 4,487 13,358,022,739 5,941,422,096 

 1120S 52 22,685,536 23,173,728 

 Other 1,982 4,140,930,560 596,318,304 

Total 6,521 $17,521,638,835 $6,560,914,128 

Grand total 3,869,023 $21,156,667,015 $11,742,134,728 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

90 GAO-01-301R Information on Federal Tax System 

Table III.15: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1993 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 846,401 $26,530,547 $224,804,678 

 1120A 225,383 5,381,516 22,069,828 

 1120S 1,205,690 31,297,814 213,370,511 

 Other 10,897 17,473 72,545,264 

Total 2,288,372 $63,227,350 $532,790,282 

$100,000 to $1,000,000 1120 705,050 245,383,897 644,489,565 

 1120A 40,244 7,703,632 7,139,681 

 1120S 551,937 178,535,369 428,450,540 

 Other 1,193 583,907 426,051 

Total 1,298,425 $432,206,804 $1,080,505,837 

$1,000,000 to $10,000,000 1120 184,096 492,129,249 1,005,966,801 

 1120S 132,507 359,879,381 801,042,547 

 Other 2,581 10,315,546 3,829,257 

Total 319,184 $862,324,176 $1,810,838,605 

$10,000,000 to $25,000,000 1120 16,502 259,049,927 381,827,840 

 1120S 8,378 125,340,551 270,050,248 

 Other 1,017 16,751,153 4,699,320 

Total 25,897 $401,141,632 $656,577,409 

$25,000,000 to $50,000,000 1120 8,343 295,264,489 297,900,275 

 1120S 2,003 68,430,333 121,106,145 

 Other 1,019 36,587,895 5,177,887 

Total 11,365 $400,282,717 $424,184,307 

$50,000,000 to $100,000,000 1120 6,101 431,758,367 323,824,380 

 1120S 694 46,635,527 78,917,133 

 Other 1,174 84,563,305 9,934,618 

Total 7,970 $562,957,199 $412,676,131 

$100,000,000 to $250,000,000 1120 4,829 750,002,056 513,113,239 

 1120S 237 34,255,122 55,466,817 

 Other 1,525 246,054,500 31,325,718 

Total 6,592 $1,030,311,679 $599,905,773 

More than $250,000,000 1120 4,607 14,477,836,079 6,146,933,298 

 1120S 58 25,924,867 29,192,862 

 Other 2,159 3,559,656,870 576,117,205 

Total 6,824 $18,063,417,817 $6,752,243,366 

Grand total 3,964,629 $21,815,869,373 $12,269,721,710 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

91 GAO-01-301R Information on Federal Tax System 

Table III.16: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1994 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 1,026,863 $31,779,249 $325,529,141 

 1120A 217,417 5,139,798 20,758,980 

 1120S 1,279,577 32,384,048 220,363,791 

 Other 11,235 19,823 87,154,655 

Total 2,535,093 $69,322,918 $653,806,567 

$100,000 to $1,000,000 1120 776,522 264,103,137 739,388,454 

 1120A 39,708 7,742,208 7,051,276 

 1120S 588,694 189,313,043 469,140,553 

 Other 1,172 575,918 285,971 

Total 1,406,096 $461,734,306 $1,215,866,255 

$1,000,000 to $10,000,000 1120 193,688 521,788,585 1,100,588,582 

 1120S 143,150 391,844,138 889,211,482 

 Other 2,674 10,559,919 3,579,580 

Total 339,512 $924,192,642 $1,993,379,644 

$10,000,000 to $25,000,000 1120 17,276 269,686,746 406,509,620 

 1120S 9,053 134,533,153 302,818,191 

 Other 1,246 20,258,701 4,832,206 

Total 27,575 $424,478,600 $714,160,018 

$25,000,000 to $50,000,000 1120 8,618 303,946,552 314,400,132 

 1120S 2,188 74,726,797 141,141,933 

 Other 1,113 40,655,196 5,768,010 

Total 11,919 $419,328,545 $461,310,075 

$50,000,000 to $100,000,000 1120 6,175 436,943,346 349,068,949 

 1120S 749 50,593,331 89,054,237 

 Other 1,289 93,662,095 11,508,046 

Total 8,213 $581,198,773 $449,631,231 

$100,000,000 to $250,000,000 1120 4,983 776,752,666 560,546,487 

 1120S 285 42,665,964 70,843,881 

 Other 1,624 265,815,229 27,117,187 

Total 6,892 $1,085,233,859 $658,507,555 

More than $250,000,000 1120 4,744 15,671,544,405 6,629,255,893 

 1120S 58 27,619,266 28,371,276 

 Other 2,267 3,781,553,273 555,718,642 

Total 7,069 $19,480,716,943 $7,213,345,811 

Grand total 4,342,368 $23,446,206,585 $13,360,007,156 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

92 GAO-01-301R Information on Federal Tax System 

Table III.17: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1995 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 1,025,610 $31,631,440 $341,028,735 

 1120A 216,668 5,202,681 20,792,123 

 1120S 1,365,124 35,647,736 249,740,913 

 Other 7,665 13,578 84,669,039 

Total 2,615,066 $72,495,435 $696,230,811 

$100,000 to $1,000,000 1120 773,210 265,719,685 757,175,213 

 1120A 40,771 7,854,036 7,148,277 

 1120S 622,895 201,684,033 511,904,913 

 Other 1,095 525,224 301,251 

Total 1,437,971 $475,782,978 $1,276,529,654 

$1,000,000 to $10,000,000 1120 202,189 541,101,753 1,154,139,729 

 1120S 151,489 414,498,785 921,512,867 

 Other 2,894 11,440,155 4,882,639 

Total 356,572 $967,040,693 $2,080,535,236 

$10,000,000 to $25,000,000 1120 17,788 276,553,261 440,965,909 

 1120S 9,949 147,978,255 340,638,811 

 Other 1,341 21,929,225 5,220,838 

Total 29,078 $446,460,741 $786,825,559 

$25,000,000 to $50,000,000 1120 8,696 307,749,559 346,666,735 

 1120S 2,462 84,952,011 170,206,987 

 Other 1,192 43,808,952 5,504,691 

Total 12,350 $436,510,521 $522,378,413 

$50,000,000 to $100,000,000 1120 6,231 442,785,504 367,030,941 

 1120S 820 55,866,236 98,100,812 

 Other 1,302 93,950,989 10,451,131 

Total 8,353 $592,602,729 $475,582,883 

$100,000,000 to $250,000,000 1120 5,175 805,022,932 597,336,703 

 1120S 311 45,765,097 70,284,415 

 Other 1,727 281,194,086 30,049,475 

Total 7,213 $1,131,982,116 $697,670,593 

More than $250,000,000 1120 4,920 17,344,981,564 7,324,002,378 

 1120S 68 31,200,703 42,683,742 

 Other 2,575 4,514,631,522 636,610,845 

Total 7,563 $21,890,813,788 $8,003,296,965 

Grand total 4,474,167 $26,013,689,000 $14,539,050,114 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

93 GAO-01-301R Information on Federal Tax System 

Table III.18: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1996 

Dollars in thousands

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 1,033,494 $31,571,292 $374,510,632 

 1120A 200,123 5,036,530 20,395,580 

 1120S 1,453,376 37,658,098 275,522,725 

 Other 9,772 13,720 96,469,124 

Total 2,696,765 $74,279,640 $766,898,060 

$100,000 to $1,000,000 1120 779,070 267,979,375 759,152,234 

 1120A 41,413 8,065,937 7,330,192 

 1120S 674,825 217,103,736 569,990,263 

 Other 1,211 591,858 335,607 

Total 1,496,519 $493,740,907 $1,336,808,295 

$1,000,000 to $10,000,000 1120 206,256 554,669,158 1,191,553,123 

 1120S 161,676 446,729,624 1,005,393,831 

 Other 2,939 12,062,502 7,304,003 

Total 370,871 $1,013,461,284 $2,204,250,957 

$10,000,000 to $25,000,000 1120 18,182 283,864,455 457,061,767 

 1120S 10,719 161,673,048 358,917,013 

 Other 1,431 23,827,263 6,526,183 

Total 30,331 $469,364,766 $822,504,963 

$25,000,000 to $50,000,000 1120 8,806 311,175,842 354,099,214 

 1120S 2,491 85,417,587 170,599,902 

 Other 1,292 46,990,009 8,190,774 

Total 12,589 $443,583,438 $532,889,889 

$50,000,000 to $100,000,000 1120 6,214 440,621,444 382,714,966 

 1120S 887 60,273,649 106,134,471 

 Other 1,367 99,154,377 13,594,652 

Total 8,468 $600,049,469 $502,444,088 

$100,000,000 to $250,000,000 1120 5,287 819,653,988 614,345,113 

 1120S 351 50,302,032 77,178,786 

 Other 1,955 319,034,407 41,837,472 

Total 7,594 $1,188,990,428 $733,361,372 

More than $250,000,000 1120 5,032 17,268,547,867 7,424,327,130 

 1120S 92 41,203,162 54,357,181 

 Other 3,110 7,049,042,165 1,147,876,070 

Total 8,234 $24,358,793,194 $8,626,560,380 

Grand total 4,631,370 $28,642,263,127 $15,525,718,006 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

94 GAO-01-301R Information on Federal Tax System 

Table III.19: Type and Number of Corporate Returns, Assets, and Receipts by Asset Size, Tax Year 1997 

Dollars in thousands 

Assets Type 

Number of 

returns Total assets Total receipts 

Less than $100,000 1120 1,003,655 $30,168,805 $444,227,943 

 1120A 182,611 4,336,024 17,672,123 

 1120S 1,540,287 39,024,602 289,127,754 

 Other 11,826 13,533 119,363,348 

Total 2,738,379 $73,542,965 $870,391,168 

$100,000 to $1,000,000 1120 754,610 262,041,699 739,970,413 

 1120A 39,329 7,945,617 6,705,876 

 1120S 718,329 232,134,283 612,745,583 

 Other 1,178 574,844 309,125 

Total 1,513,446 $502,696,443 $1,359,730,997 

$1,000,000 to $10,000,000 1120 208,108 558,975,258 1,199,803,563 

 1120S 176,780 503,330,762 1,113,803,157 

 Other 3,120 12,951,115 5,547,288 

Total 388,008 $1,075,257,135 $2,319,154,008 

$10,000,000 to $25,000,000 1120 18,395 287,149,178 455,307,978 

 1120S 11,976 180,865,125 392,456,044 

 Other 1,391 22,930,133 6,294,556 

Total 31,761 $490,944,435 $854,058,579 

$25,000,000 to $50,000,000 1120 8,402 297,348,440 344,794,052 

 1120S 2,986 101,826,732 188,589,459 

 Other 1,343 49,751,692 8,526,425 

Total 12,731 $448,926,864 $541,909,935 

$50,000,000 to $100,000,000 1120 6,098 431,504,103 394,468,583 

 1120S 1,177 80,241,769 121,277,372 

 Other 1,447 104,220,470 13,767,671 

Total 8,723 $615,966,342 $529,513,626 

$100,000,000 to $250,000,000 1120 5,310 829,171,637 621,000,412 

 1120S 562 82,767,918 108,994,817 

 Other 2,125 343,492,124 43,679,159 

Total 7,997 $1,255,431,679 $773,674,387 

More than $250,000,000 1120 5,288 19,727,189,691 7,984,636,494 

 1120S 156 87,282,098 68,243,332 

 Other 3,593 8,752,414,473 1,308,394,775 

Total 9,037 $28,566,886,262 $9,361,274,601 

Grand total 4,710,083 $33,029,652,126 $16,609,707,302 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Other = Other types of 1120s. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Question 12: How many taxpayers filed each of the main individual tax forms (i.e., 

Schedules 1040, 1040EZ, Schedules A, D, etc.) for the most recent tax years such 

information is available? If possible, break down the number of taxpayers by filing 

status or type of taxpayer. 

Tables III.20 though III.23 provide the number of tax forms filed by taxpayer filing status. Tables 

III.24 through III.27 provide the number of forms and schedules filed by taxpayers reporting 

incomes greater than or equal to an adjusted gross income of $50,000. Tables III.28 through III.31 

provide the number of forms and schedules filed by the top 20 percent of income earners. Tables 

III.32 and III.33 provide return information on taxpayers according to their ages. IRS’ data 

include electronically-filed returns in the totals for paper forms 1040, 1040A, and 1040EZ. 
Enclosure III 

95 GAO-01-301R Information on Federal Tax System 

Table III.20: Tax Forms Filed by Taxpayer Filing Status, Tax Years 1990-93 

In thousands 

Tax year 

Tax form filed 1990 1991 1992 1993 

1040 

Single 22,898 20,661 20,807 20,723 

Married filing jointly 39,392 35,080 36,171 36,789 

Married filing separately 1,463 1,302 1,511 1,515 

Head of household 5,451 4,896 4,956 5,026 

Widow(er) with dependent child 67 49 49 27 

Total 69,270 61,988 63,494 64,080 

1040A 

Single 8,446 7,603 7,456 7,381 

Married filing jointly 8,986 9,761 9,724 8,629 

Married filing separately 732 825 797 791 

Head of household 7,709 8,167 9,064 9,785 

Widow(er) with dependent child 45 33 43 29 

Total 25,917 26,389 27,085 26,615 

1040EZ 

Single 18,530 19,093 18,256 18,702 

Married filing jointly 0 0 0 989 

Total 18,530 19,093 18,256 19,691 

1040PC 

Single a 2,474 2,063 1,762 

Married filing jointly a 3,880 2,126 1,892 

Married filing separately a 172 149 131 

Head of household a 724 431 430 

Widow(er) with dependent child a 11 1 0 

Total a 7,261 4,770 4,215 

Grand total 113,717 114,731 113,605 114,602 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

a

Tax year 1990 data are not available for the 1040PC because it was not used until tax year 1991. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

96 GAO-01-301R Information on Federal Tax System 

Table III.21: Tax Forms Filed by Filing Status, Tax Years 1994-97 

In thousands 

Tax year 

Tax form 1994 1995 1996 1997 

1040 

Single 21,773 21,184 22,312 23,919 

Married filing jointly 37,427 36,507 36,448 37,046 

Married filing separately 1,593 1,628 1,638 1,586 

Head of household 5,544 5,368 5,787 6,180 

Widow(er) with dependent child 54 87 81 50 

Total 66,391 64,775 66,265 68,782 

1040A 

Single 7,601 6,503 6,670 6,624 

Married filing jointly 8,340 7,815 7,229 7,304 

Married filing separately 814 808 723 813 

Head of household 9,260 9,314 9,946 10,034 

Widow(er) with dependent child 36 23 12 4 

Total 26,051 24,463 24,579 24,780 

1040EZ 

Single 19,312 20,257 19,982 20,009 

Married filing jointly 1,195 1,387 1,214 1,145 

Total 20,508 21,644 21,196 21,155 

1040PC 

Single 1,189 2,891 3,360 3,166 

Married filing jointly 1,426 3,208 3,936 3,670 

Married filing separately 73 187 185 221 

Head of household 304 811 822 641 

Widow(er) with dependent child 1 5 9 7 

Total 2,993 7,103 8,311 7,705 

1040T 

Single a 52 a a 

Married filing jointly a 119 a a 

Married filing separately a 4 a a 

Head of household a 58 a a 

Total a 233 a a 

Grand total 115,943 118,218 120,351 122,422 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

a

Tax form 1040T was introduced in tax year 1995 and used for only that year on an experimental basis. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

97 GAO-01-301R Information on Federal Tax System 

Table III.22: Return Schedules Filed by Filing Status, Tax Years 1990-93 

In thousands 

Tax year 

Schedules filed by filing status 1990 1991 1992 1993 

Single 

No schedule filed 34,677 29,834 29,364 29,384 

Schedule A filed 7,759 7,424 7,201 7,572 

Schedule B filed 5,414 13,918 12,715 12,494 

Schedule C filed 3,218 3,357 3,554 3,465 

Schedule D filed 3,036 3,298 4,219 4,045 

Schedule E filed 4,327 3,564 3,533 3,654 

Schedule F filed 373 357 381 385 

Married filing jointly 

No schedule filed 15,522 12,285 12,433 12,536 

Schedule A filed 23,403 23,133 22,470 22,953 

Schedule B filed 8,302 21,443 19,768 20,289 

Schedule C filed 8,949 9,122 9,176 9,404 

Schedule D filed 5,978 6,416 8,143 7,409 

Schedule E filed 10,323 9,723 9,535 9,668 

Schedule F filed 1,873 1,838 1,825 1,799 

Married filing separately 

No schedule filed 1,209 1,247 1,258 1,223 

Schedule A filed 697 702 841 833 

Schedule B filed 207 417 427 445 

Schedule C filed 277 244 302 293 

Schedule D filed 170 155 178 160 

Schedule E filed 218 200 183 192 

Schedule F filed 20 22 20 38 

Head of household 

No schedule filed 10,051 10,087 10,943 11,469 

Schedule A filed 2,160 2,025 1,998 2,073 

Schedule B filed 563 1,549 1,314 1,437 

Schedule C filed 697 843 820 980 

Schedule D filed 358 408 452 462 

Schedule E filed 719 697 627 623 

Schedule F filed 47 57 43 43 

Widow(er) with dependent child 

No schedule filed 55 35 36 30 

Schedule A filed 34 28 31 14 

Schedule B filed 22 46 45 19 

Schedule C filed 7 2 4 5 

Schedule D filed 16 12 10 5 

Schedule E filed 17 8 14 6 

Schedule F filed 2 1 3 0 

Note: Table columns are not totaled because taxpayers may file more than one of these schedules, resulting 

in duplicate counting. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

98 GAO-01-301R Information on Federal Tax System 

Table III.23: Return Schedules Filed by Filing Status, Tax Years 1994-97

In thousands 

Tax year 

Schedules filed by filing status 1994 1995 1996 1997 

Single 

No schedule filed 30,869 30,956 31,351 31,305 

Schedule A filed 7,338 7,755 8,300 8,905 

Schedule B filed 12,045 12,917 13,598 14,330 

Schedule C filed 3,621 3,628 3,850 3,917 

Schedule D filed 4,889 5,170 5,945 9,214 

Schedule E filed 3,664 3,782 3,821 3,879 

Schedule F filed 385 364 380 362 

Schedule H filed a 73 72 74 

Married filing jointly 

No schedule filed 12,579 12,625 11,916 11,655 

Schedule A filed 22,684 23,148 23,693 24,214 

Schedule B filed 19,661 20,361 21,066 21,409 

Schedule C filed 9,473 9,626 9,639 9,713 

Schedule D filed 9,560 9,723 10,290 14,225 

Schedule E filed 9,792 9,803 9,949 10,015 

Schedule F filed 1,763 1,770 1,724 1,725 

Schedule H filed a 189 205 211 

Married filing separately 

No schedule filed 1,201 1,309 1,153 1,226 

Schedule A filed 919 947 980 1,003 

Schedule B filed 437 485 509 518 

Schedule C filed 274 295 308 305 

Schedule D filed 213 243 249 308 

Schedule E filed 217 212 227 243 

Schedule F filed 38 35 35 32 

Schedule H filed a 8 3 6 

Head of household 

No schedule filed 11,354 11,644 12,216 12,228 

Schedule A filed 2,049 2,123 2,400 2,470 

Schedule B filed 1,335 1,424 1,521 1,678 

Schedule C filed 1,019 1,087 1,267 1,378 

Schedule D filed 581 633 663 1,063 

Schedule E filed 617 657 692 734 

Schedule F filed 49 41 53 39 

Schedule H filed a 18 20 15 

Widow(er) with dependent child 

No schedule filed 38 40 16 9 

Schedule A filed 28 35 42 33 

Schedule B filed 38 63 79 41 

Schedule C filed 3 10 16 15 

Schedule D filed 19 23 25 28 

Schedule E filed 17 19 5 10 

Schedule F filed 3 1 b b 

Schedule H filed a 1 b b 

Note:Table columns are not totaled because taxpayers may file more than one of these schedules, resulting in 

duplicate counting. 

a

IRS schedule H was introduced in 1995. 

b

Fewer than 500 because of rounding to thousands. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

99 GAO-01-301R Information on Federal Tax System 

Table III.24: Forms Filed With AGI of Greater Than or Equal to $50,000, Tax Years 1990-93

In thousands

Tax year 

Forms filed by size of income 1990 1991 1992 1993 

1040 

AGI greater or equal to $50,000 17,024 16,117 18,277 19,280 

All other 52,247 45,870 45,216 44,801 

Total 69,270 61,988 63,494 64,080 

1040A 

AGI greater or equal to $50,000 354 484 630 596 

All other 25,563 25,905 26,455 26,019 

Total 25,917 26,389 27,085 26,615 

1040EZ 

AGI greater or equal to $50,000 7 7 30 87 

All other 18,522 19,086 18,226 19,604 

Total 18,530 19,093 18,256 19,691 

1040PC 

AGI greater or equal to $50,000 a 1,798 613 612 

All other a 5,463 4,157 3,603 

Total a 7,261 4,770 4,215 

Grand total 113,717 114,731 113,605 114,601 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax year 1990 data are not available for the 1040PC because it was not used until tax year 1991. 

Source: IRS Statistics of Income (SOI) tapes. 

Table III.25: Forms Filed With AGI of Greater Than or Equal to $50,000, Tax Years 1994-97

In thousands 

Tax year 

Forms filed by size of income 1994 1995 1996 1997 

1040 

AGI greater or equal to $50,000 20,844 21,921 23,336 25,602 

All other 45,547 42,854 42,929 43,180 

Total 66,391 64,775 66,265 68,782 

1040A 

AGI greater or equal to $50,000 747 773 786 969 

All other 25,304 23,690 23,793 23,812 

Total 26,051 24,463 24,579 24,780 

1040EZ 

AGI greater or equal to $50,000 135 180 172 199 

All other 20,373 21,464 21,025 20,956 

Total 20,508 21,644 21,197 21,155 

1040PC 

AGI greater or equal to $50,000 699 1,490 1,967 2,052 

All other 2,294 5,613 6,344 5,653 

Total 2,993 7,103 8,311 7,705 

1040T 

AGI greater or equal to $50,000 a 36 a a 

AGI less than $50,000 a 197 a a 

Total a 233 a a 

Grand total 115,943 118,218 120,352 122,422 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax form 1040T was introduced in tax year 1995 and used for only that year on an experimental basis. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

100 GAO-01-301R Information on Federal Tax System 

Table III.26: Return Schedules Filed With AGI of Greater Than or Equal to $50,000, Tax Years 1990-93

In thousands 

Tax year 

Schedules filed by size of income 1990 1991 1992 1993 

AGI greater or equal to $50,000 

No schedule filed 1,256 958 1,284 1,397 

Schedule A filed 14,739 15,386 15,966 16,772 

Schedule B filed 5,288 11,315 11,023 11,847 

Schedule C filed 3,138 3,275 3,486 3,749 

Schedule D filed 3,816 4,149 5,476 5,096 

Schedule E filed 5,671 5,476 5,578 5,787 

Schedule F filed 442 449 469 506 

All other 

No schedule filed 60,259 52,529 52,750 53,246 

Schedule A filed 19,313 17,927 16,575 16,672 

Schedule B filed 9,220 26,058 23,245 22,838 

Schedule C filed 10,009 10,293 10,370 10,399 

Schedule D filed 5,743 6,139 7,527 6,984 

Schedule E filed 9,933 8,716 8,314 8,356 

Schedule F filed 1,873 1,827 1,802 1,760 

Notes: AGI = adjusted gross income. 

Table columns are not totaled because taxpayers may file more than one of these schedules, resulting in duplicate 

counting. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

Source: IRS Statistics of Income (SOI) tapes. 

Table III.27: Return Schedules Filed With AGI of Greater Than or Equal to $50,000, Tax Years 1994-97 

In thousands

Tax year 

Schedules filed by size of income 1994 1995 1996 1997 

AGI greater or equal to $50,000 

No schedule filed 1,721 2,011 2,234 2,629 

Schedule A filed 17,897 19,141 20,351 21,834 

Schedule B filed 12,237 13,460 14,802 16,301 

Schedule C filed 3,998 4,283 4,654 4,996 

Schedule D filed 6,750 7,374 8,370 12,179 

Schedule E filed 6,164 6,634 6,986 7,504 

Schedule F filed 513 541 614 675 

Schedule H filed a 222 248 263 

All other 

No schedule filed 54,321 54,565 54,419 53,794 

Schedule A filed 15,121 14,866 15,064 14,790 

Schedule B filed 21,279 21,790 21,970 21,676 

Schedule C filed 10,393 10,363 10,426 10,333 

Schedule D filed 8,512 8,419 8,802 12,660 

Schedule E filed 8,143 7,839 7,707 7,377 

Schedule F filed 1,725 1,669 1,578 1,484 

Schedule H filed a 67 52 44 

Notes: AGI = adjusted gross income. 

Table columns are not totaled because taxpayers may file more than one of these schedules, resulting in duplicate 

counting. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

IRS schedule H was introduced in 1995. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

101 GAO-01-301R Information on Federal Tax System 

Table III.28: Forms Filed by Top 20 Percent of Income Earners and All Others, Tax Years 1990-93 

In thousands 

Tax year 

Forms filed by income category 1990 1991 1992 1993 

1040 

Top 20 percent 21,730 19,635 20,823 21,238 

All other 47,541 42,353 42,670 42,843 

Total 69,270 61,988 63,494 64,080 

1040A 

Top 20 percent 980 1,051 1,057 850 

All other 24,937 25,337 26,027 25,765 

Total 25,917 26,389 27,085 26,615 

1040EZ 

Top 20 percent 50 57 80 131 

All other 18,480 19,036 18,176 19,561 

Total 18,530 19,093 18,256 19,691 

1040PC 

Top 20 percent a 2,205 753 702 

All other a 5,056 4,017 3,513 

Total a 7,261 4,770 4,215 

Grand total 113,717 114,731 113,605 114,602 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax year 1990 data are not available for the 1040PC because it was not used until tax year 1991. 

Source: IRS Statistics of Income (SOI) tapes. 

Table III.29: Forms Filed by Top 20 Percent of Income Earners and All Others, Tax Years 1994-97 

In thousands 

Tax year 

Forms filed by income category 1994 1995 1996 1997 

1040 

Top 20 percent 21,487 21,324 21,646 22,255 

All other 44,904 43,450 44,619 46,527 

Total 66,391 64,775 66,265 68,782 

1040A 

Top 20 percent 816 683 566 453 

All other 25,235 23,780 24,013 24,327 

Total 26,051 24,463 24,579 24,780 

1040EZ 

Top 20 percent 162 156 109 66 

All other 20,346 21,488 21,087 21,088 

Total 20,508 21,644 21,196 21,155 

1040PC 

Top 20 percent 715 1,446 1,757 1,707 

All other 2,278 5,656 6,554 5,998 

Total 2,993 7,103 8,311 7,705 

1040T 

Top 20 percent a 30 a a 

All other a 203 a a 

Total a 233 a a 

Grand total 115,943 118,218 120,351 122,422 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax form 1040T was introduced in tax year 1995 and used for only that year on an experimental basis. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

102 GAO-01-301R Information on Federal Tax System 

Table III.30: Return Schedules Filed by Top 20 Percent of Income Earners and All Others, Tax Years 1990-93 

In thousands 

Tax year 

Schedule filed by income category 1990 1991 1992 1993 

Top 20 percent 

No schedule filed 2,446 1,727 1,893 1,821 

Schedule A filed 18,137 18,175 17,897 18,236 

Schedule B filed 6,205 13,265 12,258 12,752 

Schedule C filed 3,929 3,984 3,968 4,145 

Schedule D filed 4,488 4,770 5,986 5,415 

Schedule E filed 6,659 6,229 6,113 6,181 

Schedule F filed 600 574 546 565 

All other 

No schedule filed 59,070 51,761 52,141 52,822 

Schedule A filed 15,915 15,137 14,643 15,208 

Schedule B filed 8,303 24,107 22,010 21,933 

Schedule C filed 9,218 9,585 9,887 10,003 

Schedule D filed 5,071 5,518 7,017 6,665 

Schedule E filed 8,945 7,963 7,779 7,961 

Schedule F filed 1,715 1,701 1,726 1,701 

Note: Table columns are not totaled because taxpayers may file more than one of these schedules, resulting in 

duplicate counting. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

Source: IRS Statistics of Income (SOI) tapes. 

Table III.31: Return Schedules Filed by Top 20 Percent of Income Earners and All Others, Tax Years 1994-97 

In thousands 

Tax year 

Schedule filed by income category 1994 1995 1996 1997 

Top 20 percent 

No schedule filed 1,876 1,833 1,761 1,625 

Schedule A filed 18,351 18,701 19,099 19,444 

Schedule B filed 12,522 13,178 13,972 14,683 

Schedule C filed 4,123 4,181 4,325 4,360 

Schedule D filed 6,874 7,259 7,984 11,160 

Schedule E filed 6,265 6,561 6,638 6,836 

Schedule F filed 527 529 560 552 

Schedule H filed a 222 245 261 

All other 

No schedule filed 54,166 54,742 54,892 54,798 

Schedule A filed 14,667 15,307 16,316 17,180 

Schedule B filed 20,994 22,072 22,799 23,295 

Schedule C filed 10,268 10,466 10,755 10,968 

Schedule D filed 8,388 8,533 9,188 13,679 

Schedule E filed 8,042 7,912 8,055 8,046 

Schedule F filed 1,711 1,681 1,632 1,607 

Schedule H filed a 67 55 45 

Notes: Table columns are not totaled because taxpayers may file more than one of these schedules, resulting in 

duplicate counting. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

IRS schedule H was introduced in 1995. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

103 GAO-01-301R Information on Federal Tax System 

Table III.32: Forms Filed by Taxpayers Aged 65 or Over and All Others, Tax Years 1990-93 

In thousands 

Tax year 

Forms filed by age and tax form 1990 1991 1992 1993 

1040 

Over 65 11,675 10,088 10,194 10,203 

All other 57,595 51,900 53,300 53,877 

Total 69,270 61,988 63,494 64,080 

1040A 

Over 65 2,102 2,894 2,718 2,768 

All other 23,815 23,495 24,367 23,847 

Total 25,917 26,389 27,085 26,615 

1040EZ 

Over 65 0 0 0 0 

All other 18,530 19,093 18,256 19,691 

Total 18,530 19,093 18,256 19,691 

1040PC 

Over 65 a 1,089 893 780 

All other a 6,172 3,877 3,436 

Total a 7,261 4,770 4,216 

Grand total 113,717 114,731 113,605 114,602 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax year 1990 data are not available for the 1040PC because it was not used until tax year 1991.

Source: IRS Statistics of Income (SOI) tapes. 

Table III.33: Forms Filed by Taxpayers Aged 65 or Over and All Others, Tax Years 1994-97

In thousands 

Tax year 

Forms filed by age and tax form 1994 1995 1996 1997 

1040 

Over 65 10,750 10,441 11,044 11,155 

All other 55,641 54,334 55,221 57,627 

Total 66,391 64,775 66,265 68,782 

1040A 

Over 65 2,669 2,610 2,632 2,862 

All other 23,382 21,853 21,947 21,918 

Total 26,051 24,463 24,579 24,780 

1040EZ 

Over 65 0 0 0 0 

All other 20,508 21,644 21,196 21,155 

Total 20,508 21,644 21,196 21,155 

1040PC 

Over 65 472 1,108 1,335 1,241 

All other 2,521 5,995 6,976 6,464 

Total 2,993 7,103 8,311 7,705 

1040T 

Over 65 a 28 a a 

All other a 205 a a 

Total a 233 a a 

Grand total 115,943 118,218 120,351 122,422 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

“All other” category includes a small amount of data that we could not allocate because of incomplete return 

information on SOI tapes. 

a

Tax form 1040T was introduced in tax year 1995 and used for only that year on an experimental basis. 

Source: IRS Statistics of Income (SOI) tapes. 
Enclosure III 

104 GAO-01-301R Information on Federal Tax System 

Question 13: How many partnership returns (Form 1065) were filed for the most recent 

tax years such information is available? Also provide the number of partners and 

amount of assets, and business receipts associated with these returns. 

Table III.34 summarizes the number of partnerships, partners, total assets, and total business 

receipts for tax years 1990 through 1997. Tables III.35 through III.42 show the number of 

partnerships, partners, assets, and business receipts by SOI industry classification for tax years 

1990 through 1997. We did not verify or correct SOI data. 

Table III.34: Number of Partnerships, Partners, Assets, and Business Receipts, Tax Years 1990 -1997 

Dollars in thousands 

Tax year Partnerships Partners Assets Business receipts

1990 1,553,529 17,094,966 $1,685,223,450 $483,417,504 

1991 1,515,345 15,801,047 1,816,567,895 483,164,395 

1992 1,484,752 15,734,691 1,907,344,453 514,827,003 

1993 1,467,567 15,626,848 2,118,268,141 560,999,120 

1994 1,493,963 14,989,505 2,295,212,222 656,158,602 

1995 1,580,900 15,605,686 2,718,647,742 760,617,695 

1996 1,654,256 15,662,298 3,368,165,845 915,844,404 

1997 1,758,627 16,183,715 $4,171,498,832 $1,141,963,405 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Table III.35: Partnership Returns (Form 1065) by Industry, Tax Year 1990 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 125,029 502,740 $27,530,014 $9,496,593 

Mining 40,904 2,148,754 58,246,016 19,967,085 

Construction 59,469 161,537 17,989,157 30,716,285 

Total manufacturing 28,285 246,210 59,789,377 65,354,487 

Transportation and public utilities 25,180 503,411 63,333,737 32,800,444 

Wholesale and retail trade 175,939 480,927 28,422,527 98,119,832 

Finance, insurance, and real estate 822,254 10,846,18 1,279,390,201 64,313,481 

Services 267,336 2,153,169 150,062,785 161,702,262 

Not allocable 9,133 52,032 409,636 947,036 

Total 1,553,529 17,094,966 $1,685,173,450a $483,417,504 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

a

Our total here did not agree with the SOI total of $1,685,223,450,000. See table III.34. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

105 GAO-01-301R Information on Federal Tax System 

Table III.36: Partnership Returns (Form 1065) by Industry, Tax Year 1991 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 127,073 551,714 $32,391,460 $8,421,988 

Mining 39,022 1,414,487 53,725,039 18,147,039 

Construction 57,195 151,692 16,730,159 26,625,369 

Manufacturing 23,974 175,157 65,140,070 65,817,598 

Transportation and public utilities 26,107 519,142 72,511,924 37,611,233 

Wholesale and retail trade 170,963 447,833 29,785,793 99,748,560 

Finance, insurance, and real estate 803,836 10,316,515 1,366,914,278 57,398,063 

Services 260,449 2,206,489 159,116,867 169,072,760 

Not allocable 6,706 18,018 252,305 321,784 

Total 1,515,345 15,801,047 $1,796,567,895a $483,164,395 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

a

Our total here did not agree with the SOI total of $1,816,567,895,000. See table III.34. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Table III.37: Partnership Returns (Form 1065) by Industry, Tax Year 1992 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 124,564 504,317 $32,884,248 $8,931,648 

Mining 36,399 1,388,608 53,696,645 16,706,468 

Construction 59,412 157,934 15,663,127 25,945,769 

Manufacturing 24,074 224,900 74,239,667 78,028,044 

Transportation and public utilities 23,535 527,350 81,069,889 42,080,927 

Wholesale and retail trade 162,472 425,381 32,777,068 107,869,925 

Finance, insurance, and real estate 797,324 10,328,122 1,438,303,304 53,530,668 

Services 252,517 2,166,644 178,577,034 181,602,784 

Not allocable 4,454 11,436 133,471 130,771 

Total 1,484,752 15,734,691 $1,907,344,453 $514,827,003 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Table III.38: Partnership Returns (Form 1065) by Industry, Tax Year 1993 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 119,960 588,188 $38,946,667 $10,342,859.0 

Mining 31,892 1,431,073 51,367,267 17,364,332 

Construction 61,910 154,474 13,917,415 26,863,061 

Manufacturing 25,065 231,080 84,183,811 89,860,773 

Transportation and public utilities 20,757 652,085 115,595,813 58,851,833 

Wholesale and retail trade 157,178 471,412 35,277,677 110,889,715 

Finance, insurance, and real estate 792,651 9,944,143 1,612,142,006 62,142,324 

Services 255,726 2,146,425 166,806,231 184,434,428 

Not allocable 2,428 7,968 31,254 249,796 

Total 1,467,567 15,626,848 $2,118,268,141 $560,999,120 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

106 GAO-01-301R Information on Federal Tax System 

Table III.39: Partnership Returns (Form 1065) by Industry, Tax Year 1994 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 123,147 574,999 $41,517,326 $11,324,124 

Mining 27,228 1,009,805 45,532,202 15,902,261 

Construction 65,645 159,367 15,170,851 31,139,964 

Manufacturing 29,539 223,819 93,493,681 107,569,031 

Transportation and public utilities 23,426 634,782 126,351,449 66,406,723 

Wholesale and retail trade 153,310 442,741 44,367,142 142,116,025 

Finance, insurance, and real estate 809,533 9,880,982 1,750,671,157 85,689,669 

Services 261,273 2,059,912 177,991,526 195,933,125 

Not allocable 861 3,097 116,888 77,679 

Total 1,493,963 14,989,505 $2,295,212,222 $656,158,602 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Table III.40: Partnership Returns (Form 1065) by Industry, Tax Year 1995 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 129,105 602,779 $43,480,535 $13,269,787 

Mining 26,107 827,935 55,503,350 17,812,984 

Construction 70,727 166,868 16,653,249 35,880,818 

Manufacturing 30,155 223,381 108,925,911 124,007,190 

Transportation and public utilities 25,908 655,770 158,868,891 76,795,995 

Wholesale and retail trade 164,385 500,711 59,435,765 171,904,847 

Finance, insurance, and real estate 848,731 10,316,652 2,074,641,009 103,020,861 

Services 282,225 2,296,467 200,561,994 217,684,392 

Not allocable 3,556 15,123 577,038 240,823 

Total 1,580,900 15,605,686 $2,718,647,742 $760,617,695 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 

Table III.41: Partnership Returns (Form 1065) by Industry, Tax Year 1996 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 130,845 594,460 $46,605,126 $14,715,812 

Mining 25,327 746,362 68,121,744 23,545,257 

Construction 74,164 178,782 20,592,463 45,117,147 

Manufacturing 34,125 233,228 127,699,205 149,775,213 

Transportation and public utilities 29,806 646,709 200,207,527 101,126,564 

Wholesale and retail trade 168,050 534,451 80,881,848 212,076,554 

Finance, insurance, and real estate 891,577 10,262,431 2,587,697,111 120,389,427 

Services 296,808 2,454,595 235,679,032 248,882,532 

Not allocable 3,552 11,279 681,787 215,898 

Total 1,654,256 15,662,298 $3,368,165,845 $915,844,404 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure III 

107 GAO-01-301R Information on Federal Tax System 

Table III.42: Partnership Returns (Form 1065) by Industry, Tax Year 1997 

Dollars in thousands 

Industry Partnerships Partners Assets Business receipts 

Agriculture, forestry, and fishing 127,060 576,382 $54,450,193 $16,336,371 

Mining 28,045 774,930 84,066,432 34,246,551 

Construction 72,098 171,110 25,087,651 53,239,051 

Manufacturing 40,022 251,845 156,312,618 182,374,185 

Transportation and public utilities 30,917 620,597 244,181,107 129,697,933 

Wholesale and retail trade 173,009 584,212 104,357,967 292,127,063 

Finance, insurance, and real estate 974,223 10,554,864 3,214,104,927 139,963,877 

Services 310,990 2,642,024 287,829,363 293,864,095 

Not allocable 2,263 7,751 1,108,574 114,280 

Total 1,758,627 16,183,715 $4,171,498,832 $1,141,963,405 

Notes: Detail may not add to totals because of statistical sampling and rounding. 

Not allocable = Amounts cannot be allocated among the various industry categories above. 

Source: IRS Statistics of Income (SOI) bulletins and tapes. 
Enclosure IV 

108 GAO-01-301R Information on Federal Tax System 

Information on Assistance Provided to Taxpayers

Question 14: How many individual income tax returns were prepared by paid preparers 

in 1975, 1980, 1985, 1990-97, by type of return and filing status? 

Tables IV.1, IV.2, and IV.3 show SOI data on individual returns filed using paid preparers, by type 

of return. Table IV.1 shows available data for the earlier years, and table IV.2 shows more 

complete data for 1990-1997. Table IV.3 shows data by filing status for 1991-1997. We did not 

attempt to verify or correct SOI data. IRS’ data include returns filed electronically by paid 

preparers in the paper form 1040 category, not in the 1040A or 1040EZ categories. 

Table IV.1: Total Individual Returns Using Paid Preparers, Tax Years 1975, 1980, and 1985 

Numbers in thousands

Individual returns 1975 1980 1985 

All 1040 returns 37,825 35,589 46,685 

1040 EZ na na 740 

1040 A na 6,216 4,389 

1040 na 29,932 41,556 

Business total na na 10,658 

 Nonfarm na na 8,924 

 Farm na na 1,734 

Nonbusiness total na na 30,898 

 With itemized deductions na na 18,996 

 Without itemized deductions na na 11,902 

na = not available. 

Note: Detail may not add to totals because of statistical sampling and rounding. 

Source: IRS Statistics of Income (SOI) bulletins. 

Table IV.2: Total Individual Returns Using Paid Preparers, Tax Years 1990-97 

Numbers in thousands

Individual returns 1990 1991 1992 1993 1994 1995 1996 1997 

All 1040 returns 54,499 55,711 56,051 56,588 57,415 58,965 60,858 63,480 

1040 EZ 648 667 777 1,527 1,494 1,760 763 763 

1040 A 4,801 4,695 5,530 5,823 5,726 4,754 4,309 4,028 

1040 49,049 50,348 49,744 49,239 50,195 52,447 55,786 58,689 

Business total 10,723 12,657 12,864 12,834 13,077 13,281 13,727 13,840 

 Nonfarm 9,025 10,986 11,212 10,894 11,153 11,379 11,856 11,974 

 Farm 1,697 1,671 1,652 1,459 1,441 1,902 1,871 1,865 

Nonbusiness total 36,629 37,691 36,880 36,405 37,118 39,165 42,059 44,849 

 Itemized 17,249 17,749 17,367 14,793 14,965 15,528 16,300 17,089 

 Not itemized 19,380 19,942 19,513 21,612 22,153 23,637 25,759 27,760 

Note: Detail may not add to totals because of statistical sampling and rounding.

Source: IRS Statistics of Income (SOI) bulletins.
Enclosure IV 

109 GAO-01-301R Information on Federal Tax System 

Table IV.3 shows IRS data on individual returns using paid preparers, by filing status. IRS did not 

have paid-preparer data by filing status for 1990 or earlier years. 

Table IV.3: Individual Returns Using Paid Preparers by Filing Status, Tax Years 1991-97 

Numbers in thousands

Filing status 1991 1992 1993 1994 1995 1996 1997 

Single 19,422 18,969 19,229 20,104 20,738 21,125 22,439 

Married filing jointly 28,277 28,212 28,318 28,478 28,947 29,187 29,677 

Married filing separately 1,075 1,208 1,160 1,201 1,288 1,244 1,350 

Head of household 6,760 7,349 7,869 7,588 7,934 9,222 9,968 

Widower 52 56 18 45 58 80 46 

Source: IRS Statistics of Income (SOI) bulletins. 

Question 15: How many income tax returns (corporate and individual) were computergenerated in recent years? 

Taxpayers or their paid preparers can generate individual income tax returns using computers in 

a variety of ways. For example, a taxpayer can use computer software to prepare the return, and 

then print out a paper copy and mail it to IRS. Or, a taxpayer might prepare the return manually 

and have a third party transmit it to IRS electronically, using special computer software. IRS data 

differ in what could be counted as computer usage, as follows:7

• Paper: includes returns that appear to have been produced using commercially available 

computer software rather than being typewritten or handwritten. The data are estimates from 

random (SOI) samples of returns filed in each year. According to IRS officials, the distinction 

between typewritten and computer-generated returns is not always clear, and the estimates 

may be slightly inflated by counting some typewritten returns as computer-generated. 

However, SOI analysts found this uncertainty in less than 1 percent of the returns counted as 

computer-generated in 1998 and 1999. 

• Electronically filed--traditional: includes returns transmitted to IRS through a third party, 

known as an electronic return originator, using an IRS-approved computer system. The 

computer systems check returns for certain errors before transmitting them to IRS. However, 

IRS’ data do not distinguish whether the taxpayer manually prepared the return or used 

computer software. 

• Electronically filed--on-line: includes returns transmitted to IRS from a taxpayer’s personal 

computer through an on-line intermediary. According to IRS officials, returns transmitted online were also prepared using computer software. 

Table IV.4 shows available IRS data on individual returns filed in calendar years 1990-1999 that 

were generated using a computer in some way. IRS has not tracked the number of corporate 

income tax returns generated using a computer.8

 

7

We have not included data on telefiling—where returns are transmitted by the taxpayer over the telephone lines using a Touch-Tone 

telephone—because telefiling does not require the taxpayer to use a computer in preparing or transmitting the return. 

8

Corporations have not been able to electronically file their tax returns, but IRS officials said they plan to offer this capability in 2003. 
Enclosure IV 

110 GAO-01-301R Information on Federal Tax System 

Table IV.4: IRS Data on Individual Income Tax Returns Generated Using a Computer and Filed in Calendar 

Years 1990-99 

Numbers in thousands 

Filing method 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 

Paper 17,796 17,499 31,124 31,394 40,916 44,302 49,621 54,235 56,960 58,508 

Electronically 

 Traditional 4,200 7,600 10,900 12,300 13,510 11,144 12,140 14,090 17,697 21,227 

 On-line a a a a a a 157 367 942 2,457 a

IRS launched on-line filing in 1996. 

Source: IRS-SOI estimates for paper returns and GAO reports for electronic returns. See Tax Administration: IRS’

1999 Tax Filing Season (GAO/GGD-00-37, Dec. 15, 1999), p. 54; Tax Administration: IRS’ 1998 Tax Filing Season

(GAO/GGD-99-21, Dec. 31, 1998), p. 11; Tax Administration: IRS’ 1997 Tax Filing Season (GAO/GGD-98-33, Dec. 

29, 1997), pp. 10, 14; Tax Administration: Continuing Problems Affect Otherwise Successful 1994 Filing Season

(GAO/GGD-95-5, Oct. 7, 1994), p. 22. 

Question 16: How much computer software for preparing tax returns was sold in recent 

years? 

Table IV.5 shows estimated total U.S. sales of tax return preparation software in recent years. 

The data were obtained from PC Data, a market research company based in Reston, VA. 

According to PC Data, the estimates are based on data collected from companies comprising 

about 80 percent of retail and mail-order software sales in the United States. 

Table IV.5: Total Retail Sales for Tax Return Preparation Softwarea 

Year Units sold Amount 

1993 903,065 $29,049,359 

1994 1,330,779 39,270,431 

1995 1,674,948 53,633,181 

1996 2,245,183 75,301,042 

1997 2,995,425 98,236,121 

1998 4,415,904 136,027,017 

1999 5,667,799 155,841,854 

a

PC Data defines tax software as any software that is used to prepare state, federal, personal, or business taxes. 

Source: PC Data, Inc., Reston, VA. 

Question 17: How much assistance did IRS provide to taxpayers in recent years? 

Data on the assistance IRS provides to taxpayers include three types of taxpayer contacts: 

• correspondence—where taxpayers contact IRS district offices by mail, 

• walk-in—where taxpayers personally visit IRS taxpayer assistance centers, and 

• telephone—where taxpayers call IRS’ customer service centers. 

Table IV.6 shows IRS data on the amount of assistance IRS provided to taxpayers in the selected 

years, broken out by the method of contact. IRS did not have comparable correspondence and 

walk-in data for years prior to 1996 or comparable telephone data for years prior to 1995. 
Enclosure IV 

111 GAO-01-301R Information on Federal Tax System 

Table IV.6: Number of Taxpayer Contacts for IRS Assistance in Selected Years 

 Type of assistance 

Fiscal year Correspondence Walk-in Telephone Total 

1999 74,654 6,672,966 110,347,250 117,094,870 

1998 81,872 6,624,723 113,267,032 119,973,627 

1997 94,964 6,738,581 102,677,958 109,511,503 

1996 182,132 6,399,517 98,421,477 105,003,126 

1995 a a 109,824,462 109,824,462 a

IRS data not available. 

Source: IRS’ Regional Management Information System (RMIS) for correspondence and walk-in data; IRS’ Workload 

Inventory Tracking System (WITS) for telephone data. 

According to IRS officials, the correspondence data are limited to taxpayer correspondence with 

IRS’ district offices because district correspondence is more likely to involve taxpayer requests 

for assistance rather than taxpayer responses to IRS notices. However, other types of 

correspondence, not involving taxpayer requests for assistance, might also have been counted. 

IRS officials could not explain the large decrease in correspondence assistance from 1996 to 

1997. Also, the walk-in data exclude contacts limited to requesting a form or responding to an 

IRS notice, while the telephone data include such contacts. 

Question 18: What were the top 10 issues raised in each type of taxpayer assistance—

correspondence, walk-in, and telephone—for 1998 and 1999?

IRS does not have comprehensive data on the primary reasons—in terms of relevant IRC 

provisions or general tax issues—for taxpayer contacts with IRS’ customer service units. 

However, a recent IRS study9

 collected limited data on the 10 most frequent types of telephone or 

e-mail inquiries received by IRS in 1999, such as obtaining help with employment forms, claiming 

dependents, or general information for e-mail inquiries. IRS is currently attempting to identify 

other data that may bear on this question. 

Question 19: How much assistance did IRS provide to taxpayers through the Tax 

Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) 

programs in recent years?

Table IV.7 shows IRS data on the number of times taxpayers were assisted through the TCE and 

VITA programs for years 1995-98. According to IRS officials, TCE and VITA contacts are to be 

counted as assistance only if the taxpayer actually receives advice on a tax question or help with 

return preparation. Contacts are not to be counted as assistance if they are limited to the 

distribution of a form.

Table IV.7: Number of Times Taxpayers Were Assisted Through the TCE and VITA Programs in Selected 

Years 

Tax year TCE VITA 

1999 1,594,097 1,884,664 

1998 1,679,400 1,852,048 

1997 1,572,017 1,756,789 

1996 1,621,286 1,880,038 

1995 1,669,484 1,760,556 

Source: IRS data. 

 

9

Annual Report from the Commissioner of the Internal Revenue Service on Tax Law Complexity, June 5, 2000, pp. 41-45. 
Enclosure V 

112 GAO-01-301R Information on Federal Tax System 

Common Taxpayer Errors Found by IRS

Question 20: What were the 10 most common errors found when processing the returns 

of small, mid-size, and large corporations in 1999? 

IRS tracked data on errors found when processing taxpayer returns in 1999.10 The data do not 

exactly distinguish small, mid-size and large corporations, but rather are aggregated by type of 

return filed. Two types of 1120 return—the 1120A and 1120S—are associated with smaller 

corporations. Form 1120A, U.S. Corporate Short-Form Income Tax Return, is to be filed by small 

corporations having less than $500,000 in gross receipts, total income, and total assets. Form 

1120S, U.S. Income Tax Return for an S-Corporation, is to be filed by corporations that have 

elected to be organized as Small Business Corporations.11

Table V.1 shows the most common types of errors found by IRS in 1999 in processing forms 

1120A filed in 1999. About 274,000 forms 1120A were filed in 1999. Only six types of errors were 

significant enough to be included in IRS’ national totals.12

Table V.1: Common Errors for Form 1120A in 1999

Error description Number of errors 

1. Contributions deducted exceeded the allowable amount 1,398 

2. Total income tax figured incorrectly 956 

3. Total deductions figured incorrectly 334 

4. Overpayment or tax due amount figured incorrectly 236 

5. Total income figured incorrectly 155 

6. Taxable income figured incorrectly 147 

Source: IRS data. 

In 1999, only two types of errors were significant enough to be included in IRS’ national totals for 

forms 1120S: (1) overpayment or tax due amount figured incorrectly, and (2) miscellaneous13. In 

1999 about 2.8 million forms 1120S were filed. An IRS official explained that the 1120S is a very 

simple form that offers less opportunity for error than the 1120A. 

Table V.2 shows the most common types of error found by IRS in 1999 on forms 1120. The data 

includes the standard form 1120 and miscellaneous types such as the 1120REIT, U.S. Income Tax 

Return for Real Estate Investment Trusts; and 1120RIC, U.S. Income Tax Return for Regulated 

Investment Companies. About 2.3 million forms 1120 were filed in 1999. 

 

10Because taxpayers may file late, or may file amended returns for prior years, the errors IRS found were not all associated with the 

1998 returns that were processed during 1999. IRS sent notices to the taxpayers who made these errors, but the number of notices 

does not equal the number of errors because some taxpayers made multiple errors. 

11Corporations filing form 1120S reported average total assets of about $533,000 in 1997, according to IRS’ Spring 2000 Statistics of 

Income Bulletin, the most recent year for which data are available. 

12For an error to be included, at least one IRS service center must have reported sending at least 10 of the notices. 

13The miscellaneous category includes a variety of uncommon errors that do not fit in any other predefined category. 
Enclosure V 

113 GAO-01-301R Information on Federal Tax System 

Table V.2: Common Errors for Forms 1120 in 1999 

Error description Number of errors 

 1. Contributions deducted exceeded the allowable amount 4,497 

 2. Total income tax figured incorrectly 3,786 

 3. Overpayment of tax due amount figured incorrectly 1,703 

 4. No reply to information request 845 

 5. Total deductions figured incorrectly 701 

 6. Alternative minimum tax figured incorrectly 548 

 7. Total income figured incorrectly 357 

 8. Taxable income figured incorrectly 222 

 9. Special deductions exceeded the allowable amount 218 

10. Miscellaneous 110 

Source: IRS data. 

Question 21: List the 10 most common errors found when processing individual returns 

with total positive income under and over $50,000, returns with Schedule C, and 

returns with Schedule F, in 1999. 

IRS’ data on notices sent as a result of errors found when processing individual tax returns are 

not available by taxpayer income. However, table V.3 shows the most common types of errors 

found by IRS on forms 1040A and 1040EZ in 1999. Forms 1040A and 1040EZ are only intended for 

filers with taxable incomes of less than $50,000. Table V.4 shows similar data for form 1040, 

which is filed by—but not limited to--taxpayers with higher incomes.

Table V.3: Common Errors for Forms 1040A and 1040EZ in 1999 

Error description Number of errors 

 1. Earned Income Credit (EIC) figured or entered incorrectly on return 342,964 

 2. Refund amount or amount owed figured incorrectly 232,992 

 3. Incorrect tax amount entered from the tax tables 210,255 

 4. Taxpayer identification number (TIN) or name for dependent exemption does not 

match records 

203,312 

 5. Child Tax Credit figured incorrectly 185,980 

 6. EIC figured incorrectly because Nontaxable Earned Income excluded 159,295 

 7. Taxable Income figured incorrectly 153,524 

 8. EIC not allowed because taxpayer is too old/young 142,962 

 9. TIN or name for Child Tax Credit does not match records 129,399 

10. EIC reduced/eliminated because child’s TIN does not match records 119,282 

Source: IRS data. 

Table V.4: Common Errors for Form 1040 in 1999 

Error description Number of errors 

 1. Taxpayer Identification Number (TIN) or name for dependent exemption does not 

match records 

698,259 

 2. TIN or name for Child Tax Credit does not match records 567,756 

 3. Child Tax Credit figured incorrectly 305,013 

 4. Earned Income Credit figured or entered incorrectly 293,404 

 5. Refund amount or amount owed figured incorrectly 231,662 

 6. Taxable amount of social security benefits figured incorrectly 209,412 

 7. Incorrect tax amount entered from the tax tables 193,248 

 8. Capital gains tax figured or transferred incorrectly from Schedule D 151,971 

 9. Taxpayer Identification Number for dependent exemptions not included 144,119 

10. Tax reduced by using schedule D, part IV 131,009 

Source: IRS data. 
Enclosure V 

114 GAO-01-301R Information on Federal Tax System 

Tables V.5 and V.6 show the most common types of errors found by IRS on schedules C and F in 

1999. In 1999, about 17 million schedules C were filed and about 1.8 million schedules F were 

filed. The numbers do not reflect errors made on the associated Form 1040 returns because IRS 

has not separately tracked that data. No other types of errors attributable to these schedules 

were significant or specifically tracked. 

Table V.5: Common Schedule C Errors in 1999 

Error description Number of errors 

1. Net profit or loss figured incorrectly on Schedule C 41,881 

2. Net profit or loss transferred incorrectly from Schedule C to Form 1040 40,473 

Source: IRS data. 

Table V.6: Common Schedule F Errors in 1999 

Error description Number of errors 

Net profit or loss figured incorrectly on Schedule F 2,414 

Net profit or loss transferred incorrectly from Schedule F to Form 1040 2,046 

Source: IRS data. 

Question 22: What were the 10 most common errors found when processing estate tax 

returns for gross estates below/over $5 million? 

IRS’ data on taxpayer errors are not available by size of estate or for estate taxes separately from 

related types of returns. Table V.7 shows the most common types of error found by IRS on estate 

tax and related returns in 1999. 

Table V.7: Common Errors for Estate and Related Tax Returnsa in 1999 

Error description Number of errors 

 1. Credit for state death taxes figured incorrectly 658 

 2. Tentative tax figured incorrectly 587 

 3. Unified credit figured incorrectly 440 

 4. Write-in notice code 219 

 5. U.S. Treasury Bonds Redeemed to Pay Estate Tax figured incorrectly 121 

 6. Funeral expenses, etc., figured incorrectly 121 

 7. Line 13 of Form 706 figured incorrectly 78 

 8. Line 14 of Form 706 figured incorrectly 49 

 9. Schedule B figured incorrectly 29 

10. Schedule G or A figured incorrectly 28 

a

Includes Forms 706: U.S Estate (and generation-skipping transfer) Tax Return; 706NA: U.S. Nonresident Alien 

Estate Tax Return; 706GS(D): Generation-Skipping Transfer Tax Return for Distribution; 706GS(T): GenerationSkipping Transfer Tax Return for Terminations; and 709: U.S. Gift Tax Return. 

Source: IRS data.

Question 23: What were the top 10 issues/IRC sections identified in IRS audits for the 

most recent 3 years that such statistics are available? Break down by (a) Coordinated 

Examination Program (CEP) and non-CEP audits; (b) district office audits; and (c) 

service center audits for individual, corporate, fiduciary, estate, gift, employment, 

excise and other returns. Also, if possible, break down by (a) individual returns with 

total positive income (TPI) under/over $50,000, returns with Schedule C, and returns 

with Schedule F, and (b) gross estates below/over $5 million. 
Enclosure V 

115 GAO-01-301R Information on Federal Tax System 

Coordinated Examination Program (CEP) Audits 

IRS tracks CEP audit issues by the relevant IRC sections. CEP case data come from the 

Coordinated Examination Management Information System (CEMIS). IRS provided lists of the 

top 10 issues ranked by frequency and by dollar amount. CEMIS data were available for fiscal 

years 1998, 1999, and 2000 (up to June 20, 2000). Table V.8 provides the top 10 tax issues by 

dollar amount, and table V.9 provides such issues by frequency. 

Table V.8: Ranking of Top 10 Tax Issues for CEP Audits by Amount, Fiscal Years 1998-2000 

Issue (IRC section) 1998 1999 2000a

Life Insurance Gross Income (803) 1 

Trade or Business--Deductible v. Not Deductible (162) 5 2 2 

Capital Expenditures (Deductible v. Not Deductible) (263) 3 3 3 

Gross Income v. Not Gross Income (61) 4 

General Rule for Taxable Year of Deduction--Year Paid v. Not Year Paid (461) 2 7 5 

Deductions For Losses (165) 6 

General Rule for Methods of Accounting--Permissible v. Not Permissible (446) 7 

Allocation of Income and Deductions Among Taxpayers (482) 4 5 8 

Bad Debts (166) 4 9 

Investment of Earnings in U.S. Property (956) 10 

Insurance Company Taxable Income (832) 1 

Capitalization and Inclusion in inventory Costs of Certain Expenses (263A) 8 6 

Net Operating Loss Deductions–Deductible v. Not Deductible (172) 9 8 

Interest (163) 10 9 

Life Insurance Deductions (804) 10 

Rules for Certain Reserves (807) 1 

Tax Imposed (801) 6 

General Rule for Taxable Year of Inclusion--Year Received v. Not Year 

Received (451) 

7 

a

Through June 20, 2000. 

Source: IRS’ Coordinated Examination Management Information System. 

Table V.9: Ranking of Top 10 Tax Issues for CEP Audits by Frequency, Fiscal Years 1998-2000 

Issue (IRC section) 1998 1999 2000a

Trade or Business--Deductible v. Not Deductible (162) 1 1 1 

Capital Expenditures--Deductible v. Not Deductible (263) 2 3 2 

General Rule for Taxable Year of Deduction--Year Paid v. Not Year Paid (461) 4 4 3 

Depreciation (167) 3 2 4 

Gross Income v. Not Gross Income (61) 5 5 5 

Credit for Increasing Research Activities (41) 7 7 6 

Allocation of Income and Deductions Among Taxpayers (482) 8 6 7 

Bad Debts (166) 10 9 8 

Capitalization and Inclusion in Inventory Costs of Certain Expenses (263A) 6 8 9 

Modified Accelerated Cost Recovery System (168) 9 10 10 

a

Through June 20, 2000. 

Source: IRS’ Coordinated Examination Management Information System. 

Non-CEP Corporations 

IRS recently started to track tax issues in audits of non-CEP corporations through its 

Examination Operational Automation Database (EOAD). All districts began using the system in 

January 1999. IRS used this system to provide lists of the top 10 issues for audits of large nonCEP corporations (assets at or above $5 million) ranked by frequency and by dollar amount. For 

audits of small non-CEP corporations (assets below $5 million), IRS only provided a list of issues 
Enclosure V 

116 GAO-01-301R Information on Federal Tax System 

ranked by frequency. Table V.10 provides these data. We did not verify the completeness or 

accuracy of the data entered into the Examination Operational Automation Database (EOAD). 

Table V.10: Ranking of Top 10 Tax Issues for Large and Small Non-CEP Corporations by Frequency and/or 

Dollar Amount, January 1999-June 2000 

Large Non-CEP Small non-CEP 

Issue (IRC section) Frequency Amount Frequency 

Allowance of Deductions--Deductible v. Not Deductible (161) 1 

Gross Income v. Not Gross Income (61) 2 2 

Carryback and Carryover NOLs (172) 3 4 

Property Used in the Trade or Business (167) 4 9 

Depreciation (167) 5 

Capital Expenditures--Deductible v. Not Deductible (263) 6 1 

Capital Investment v. Expense (167) 7 

Environmental Tax (164) 8 

Repair v. Permanent Improvement (263) 9 

Ordinary and Necessary (162) 10 5 

Trade or Business--Deductible v. Not Deductible (162) 2 1 

Allocation of Income and Deductions Among Taxpayers (482) 3 

Puerto Rico and Possession Tax Credit (936) 4 

General Rule for Taxable Year of Inclusion--Year Received v. Not 

Year Received (451) 

 5 

General Rule for Taxable Year of Deduction--Year Paid v. Not Year 

Paid (461) 

 6 

Transfers of Franchises, Trademarks, and Trade Names (1253) 7 

Certain Stock Purchases Treated as Asset Acquisitions (338) 8 

Net Operating Loss Deductions--Deductible v. Not Deductible (172) 9 

Interest (163) 10 

Proof of Expenditure – Substantiation (162) 3 

Allocation between Business and Personal (162) 6 

Derived from Business (61) 7 

Trade or Business v. Not a Trade or Business (162) 8 

Cost of Goods Sold (162) 10 

Source: IRS’ Examination Operational Automation Database. 

District Audits of Individual Taxpayers 

IRS recently started to track tax issues in audits of individual taxpayers through its EOAD. All 

districts began using the system in January 1999. IRS used this system to provide lists of the top 

10 issues for audits of individual taxpayers ranked by frequency for all individuals who have no 

business income or have business income reported on a Schedule C or F. We did not verify the 

completeness or accuracy of the data entered into the EOAD system. 

Tables V.11 and V.12 show these rankings of tax issues in audits of individuals that either had or 

had no business income, and that were audited by IRS revenue agents, who tend to audit the 

more complex individual tax returns.
Enclosure V 

117 GAO-01-301R Information on Federal Tax System 

Table V.11: Ranking of the Top 10 Issues for Individual Nonbusiness Taxpayers by Frequency–Revenue 

Agents, January 1999–June 2000 

Income 

Issue (IRC section) Under $50,000a

 Over $50,000a

Gross Income v. Not Gross Income (61) 1 2 

Compensation for Services (61) 2 6 

Trade or Business--Deductible v. Not Deductible (162) 3 3 

Allowance of Deductions for Personal Exemption (151) 4 

Interest (61) 5 5 

Derived From Business (61) 6 8 

Allowance of Deductions for Personal Exemption (151) 7 

Pass-Thru of Items to Shareholders 8 1 

Gross Income v. Not Gross Income–Wages (61) 9 

Withholdings (credit v. no credit)–Wages (31) 10 

Distributive Share–Partnership (61) 4 

Dividends (61) 7 

Proof of Expenditure–Substantiation (162) 9 

Carryback or Carryover (172) 10 

a

Total positive income. 

Source: IRS’ Examination Operational Automation Database.

Table V.12: Ranking of the Top 10 Issues for Individual Schedule C (Non-Farm Businesses) and Individual 

Schedule F (Farms) by Frequency --Revenue Agents, January 1999–June 2000 

Issue (IRC section) Schedule C Schedule F 

Trade or Business--Deductible v. Not Deductible (162) 1 1 

Proof of Expenditure (162) 2 

Gross Income v. Not Gross Income (61) 3 3 

Derived From Business (61) 4 4 

Compensation For Services (61) 5 

Ordinary and Necessary (162) 6 9 

Interest (61) 7 

Trade or Business v. Not a Trade or Business (162) 8 

Allocation Between Business and Personal (162) 9 5 

Cost of Goods Sold (162) 10 6 

Farming (61) 2 

Depreciation–Property used in Trade or Business (167) 7 

Carryback or Carryover (172) 8 

Pass-Thru of Items to Shareholders (1366) 10 

Source: IRS’ Examination Operational Automation Database. 

Tables V.13 and V.14 show these rankings of tax issues in audits of individuals that either had or 

had no business income, and that were audited by IRS tax auditors, who tend to audit the simpler 

individual tax returns. 
Enclosure V 

118 GAO-01-301R Information on Federal Tax System 

Table V.13: Ranking of the Top 10 Issues for Individual Nonbusiness Taxpayers by Frequency–Tax Auditor, 

January 1999–June 2000 

Income 

Issue (IRC section) Under $50,000a

 Over $50,000a

Trade or Business--Deductible v. Not Deductible (162) 1 1 

Definitions and Special Rules–Head of Household (2) 2 

Gross Income v. Not Gross Income (61) 3 3 

Dependent Defined (152) 4 

Proof of Expenditure–Substantiation (162) 5 2 

Earned Income Credit–Qualifying Child (32) 6 

Compensation for Services (61) 7 6 

Dependent Defined–Descendants and Ancestors (152) 8 

Charitable Contributions and Gifts (170) 9 4 

Earned Income Credit (32) 10 

Interest (163) 5 

Cost of Goods Sold (61) 7 

Disallowance of Certain Entertainment Expenses–Travel (274) 8 

Depreciation (167) 9 

Ordinary and Necessary (162) 10 

a

Total positive income. 

Source: IRS’ Examination Operational Automation Database. 

Table V.14: Ranking of the Top 10 Issues for Individual Schedule C (Non-Farm Businesses) and Individual 

Schedule F (Farms) by Frequency–Tax Auditor, January 1999–June 2000 

Issue (IRC section) Schedule C Schedule F 

Trade or Business--Deductible v. Not Deductible (162) 1 1 

Proof of Expenditure–Substantiation (162) 2 2 

Gross Income v. Not Gross Income (61) 3 3 

Compensation for Services (61) 4 

Derived from Business (61) 5 7 

Disallowance of Certain Entertainment Expenses–Travel (274) 6 

Cost of Goods Sold (162) 7 

Dependent Defined (152) 8 

Interest (61) 9 

Allowance for Deductions for Personal Exemption–Taxpayer (151) 10 

Proof of Expenditure (162) 4 

Farming (61) 5 

Farmers (162) 6 

Depreciation (167) 8 

Repairs (162) 9 

Interest (163) 10 

Source: IRS’ Examination Operational Automation Database. 

Excise, Employment, Estate and Gift, and Fiduciary 

IRS does not track tax issues or recommended tax amounts associated with tax issues for excise, 

employment, estate and gift, and fiduciary tax audits. At our request in July 2000, knowledgeable 

IRS auditors judgmentally identified and ranked the most frequently raised tax issues in such 

audits on the basis of their experiences. 
Enclosure V 

119 GAO-01-301R Information on Federal Tax System 

Table V.15: Ranking of Tax Issues in Federal Excise Tax Audits, July 2000 

Issue (IRC section) 

1. Retail Truck (4051) 

2. Black Lung Trust Fund (4121) 

3. Communication Service (4251/4252) 

4. Transportation of Property by Air (4271 and 4272) 

5. Collected Taxes (4271, 4291, 7501) 

6. Truck Tires (4051(d)) 

7. Ozone Depleting Chemicals (4681(b)(2)) 

8. Luxury Passenger Automobiles (4001) 

9. Gas Guzzler (4064) 

10. Recreational Equipment (4161) 

11. Heavy Highway Motor Vehicles (4481) 

12. Motor Fuels (4081, 4091, 4041) 

13. Inland Waterways (4042) 

Source: IRS Personnel. 

Table V.16: Ranking of Tax Issues in Employment Tax Audits, July 2000 

Issue (specific legal basis of issue where applicable) 

1. FICA tax on unreported tips by individual employees/Notice and Demand for Payment (3121(q)) 

2. FICA Coverage of State and Local Government Employees (Section 218 of the Social Security Act and 

IRC 3121(b)(7)(F) and 3121(u)) 

3. Independent Contract or Employee–Common Law Standard (3121(d)) 

4. Section 530 Relief (Section 530 of the Revenue Act, as amended by the Small Business Job Protection 

Act of 1996) 

5. Student FICA Exception (3121(b)(10)) 

6. Employee Leasing (Determining the Common Law Employer) 

7. Meals and Lodging (119 and 3306(b)(9)) 

8. Fringe Benefits/Employee Business Expense Reimbursements (132) 

9. In Home Domestic Services--Chore Workers (Title XX of the Social Security Act, IRC 3401(d)(1) and 

3504) 

10. Sheltered Workshops--Handicapped Individuals (Revenue Ruling 65-165, 1965-1 C.B., 446) 

Source: IRS Personnel. 

Table V.17: Ranking of Tax Issues in Estate and Gift Tax Audits of Estates Below $5 Million, July 2000 

Issue (specific legal basis of issue where applicable) 

1. Real Estate Valuation (2031(a)) 

2. Legal Issues and Knowledge of Local Law 

3. Business Valuation (2031(a)(b), 2512, 2703, 2704(a)(b)) 

4. Miscellaneous (Insurance, Annuities or Discounted Notes) (2702) 

5. Deductions (2053, 2055, 2056) 

6. Transfers (2035, 2036, 2037, 2038) 

7. Joint or Community Property 

8. Generation Skipping Tax (2601-2662) 

9. Powers of Appointment (2041) 

Source: IRS Personnel. 
Enclosure V 

120 GAO-01-301R Information on Federal Tax System 

Table V.18: Ranking of Tax Issues in Estate and Gift Tax Audits of Estates At or Above $5 million, July 2000 

Issue (specific legal basis of issue where applicable) 

1. Business Valuation (2031(a)(b), 2512, 2703, 2704(a)(b)) 

2. Real Estate Valuation (2031(a)) 

3. Legal Issues and Knowledge of Local Law 

4. Miscellaneous (Insurance, Annuities or Discounted Notes) (2702) 

5. Deductions (2053, 2055, 2056) 

6. Transfers (2035, 2036, 2037, 2038) 

7. Generation Skipping Tax (2601-2662) 

8. Powers of Appointment (2041) 

9. Joint or Community Property 

Source: IRS Personnel. 

Table V.19: Ranking of Tax Issues in Fiduciary Tax Audits, July 2000 

Issue (IRC section) 

1. Business Trusts (61, 162, 674, 1402) 

2. K-1 Compliance (61, 652) 

3. Foreign Trusts—Failure to report transactions (61, 679, 6048) 

4. Foreign Trusts–Failure to withhold income (1441, 864, 871, 61, 679) 

5. Nonfiling of Fiduciary Returns and Related Information Returns (6011) 

6. Grantor Trusts (61, 674) 

7. Charitable Trusts (664) 

8. Charitable Deductions 6034) 

9. Family Trusts (61, 162, 674, 1402) 

10. Passive Activity Losses (469) 

Source: IRS Personnel. 

Service Center Correspondence Audits 

In addition to audits done by revenue agents and tax auditors in IRS district offices through IRS' 

Examination Division, IRS also audits tax returns through correspondence sent by 1 of the 10 IRS 

service centers. These correspondence audits tend to focus on one or two simpler tax issues.

IRS does not track issues being audited through the service center correspondence program. The 

closest data to issues are projects that IRS starts to address certain forms of apparent 

noncompliance. Some projects focus on issues. However, the projects might address more than 

one issue, depending on the noncompliance uncovered during the audits. Between fiscal years 

1997 and 1999, the projects that most frequently addressed tax issues involved the 

• earned income tax credit (EIC), 

• early distributions or withdrawal from individual retirement accounts, 

• duplicate use of one taxpayer identification number outside of claims for EIC, 

• self-employment tax, and 

• Schedule A deductions on returns done by paid preparers.
Enclosure VI 

 

121 GAO-01-301R Information on Federal Tax System 

Taxpayer Disputes in Appeals and Litigation

Question 24: How many cases did IRS’ appeals division receive in recent years? Also, 

list the most common tax issues being appealed by type of audit and type of tax return 

such as individual, corporate, and other returns, as well as dollar amounts in dispute 

for the most recent three years such statistics are available. 

IRS generally does not track issues that arise in audits, except for audits of the nation’s largest 

corporations through IRS’ Coordinated Examination Program (CEP). However, IRS does track 

issues that arise in appeals involving large corporations. IRS was also able to provide us with 

data on appeals cases received during fiscal years 1997-99. 

Number of Cases Received by IRS Appeals Division 

IRS provided the following data on the number of cases received by its appeals division. 

Table VI.1: Number of Appeals Cases Received by IRS, Fiscal Years 1997-99 

Type of case 1997 1998 1999 

Nondocketeda 54,230 47,925 43,513 

Docketedb 22,083 17,087 15,166 

Total 76,313 65,012 58,679 

a

Cases in which the taxpayer appeals before receiving a statutory notice of deficiency. 

b

Cases in which the taxpayer appeals after receiving a statutory notice of deficiency. 

Source: IRS data. 

Most Common Tax Issues 

IRS tracks issues that arise in appeals cases involving CEP audits. It does not track issues that 

arise in non-CEP audits, tax auditor examinations, service center examinations for individual, 

corporate, fiduciary, estate, gift, employment, excise and other returns. IRS could not readily 

supply data on appeals issues for the three most recent years. The most current data available 

were for April 1998 through March 1999. IRS also supplied data on the top appeals issues during 

the 5-year period of fiscal years 1994-98. 

Table VI.2 shows the most recent IRS data on CEP appeals issues ranked by number of cases and 

dollar amount proposed in IRS audits. 
Enclosure VI 

 

122 GAO-01-301R Information on Federal Tax System 

Table VI.2: Ranking of Top 10 Appeals Issues for CEP Audits by Dollar Amount and Number of Cases, 

April 1, 1998-March 31, 1999 

Dollars in billions 

Issue (IRC section) Rank by amount Rank by number of cases 

Trade or Business (162) 1 $4.7 1 150 

Allocation of Income & Expenses (482) 2 3.3 5 53 

Depreciation (167) 3 2.4 2 122 

Gross Income (61) 4 1.6 4 56 

Net Operating Loss Deduction (172) 5 1.5 9 31 

Taxes of Foreign Country (901) 6 1.3 

Losses (165) 7 1.3 8 33 

Capital Expenditures (263) 8 0.7 3 82 

Taxes (164) 9 0.7 

Corporate Consolidations (1502) 10 0.7 

Tax Year of Deduction (461) 6 51 

Tax Year of Inclusion (451) 7 34 

Bad Debts (166) 10 27 

Source: IRS data. 

Table VI.3 shows similar IRS data for the time period of fiscal years 1994 through 1998 combined. 

Table VI.3: Ranking of Top 10 Appeals Issues for CEP Audits by Dollar Amount and Number of Cases, 

Fiscal Years 1994-98 

 Dollars in billions 

Issue (IRC section) Rank by amount Rank by number of cases 

Trade or Business (162) 1 $12.2 2 826 

Depreciation (167) 2 10.4 1 925 

Gross Income (61) 3 7.4 4 359 

Allocation of Income & Expenses (482) 4 7.1 5 331 

Installment Method (453) 5 5.5 

Net Operating Loss Deduction (172) 6 5.3 

Capital Expenditures (263) 7 4.1 3 453 

Losses (165) 8 3.4 9 175 

Tax Year of Deduction (461) 9 3.2 6 274 

Involuntary Conversions (1033) 10 3.2 

Bad Debts (166) 7 232 

Tax Year of Inclusion (451) 8 192 

Accelerated Cost Recovery (168) 10 139 

Source: IRS data. 

Question 25. How many Tax Court, District Court, and Court of Federal Claims cases 

were received by IRS Chief Counsel in recent years, and what were the amounts in 

dispute and the tax issues involved? 

Table VI.4 shows the number of Tax Court, District Court, and Court of Federal Claims cases and 

the amount of money in dispute for fiscal years 1990 through 1999. 
Enclosure VI 

 

123 GAO-01-301R Information on Federal Tax System 

Table VI.4: Number of Tax Court, District Court, and Court of Federal Claims Cases and Dollar Amounts in 

Dispute, Fiscal Years 1990-99

Dollars in billions 

Tax Court District Court Court of Federal Claims 

Fiscal year Number Amount Number Amount Number Amount

1990 54.1 $33.5 2.5 $0.7 0.8 $1.2

1991 50.7 33.5 2.3 0.7 0.8 1.2

1992 46.7 35.8 2.2 0.8 0.8 1.7

1993 42.1 36.0 2.1 0.9 0.7 2.2

1994 32.5 33.0 1.8 1.0 0.7 2.1

1995 31.6 32.2 1.6 1.0 0.6 2.1

1996 31.2 30.3 1.7 1.1 0.6 2.4

1997 29.6 33.2 1.4 1.5 0.6 2.6

1998 24.7 33.8 1.3 2.7 0.8 2.6

1999 21.9 32.8 1.2 2.6 0.7 2.7

Note: Number of cases in thousands. 

Source: IRS Chief Counsel data. 

IRS data on the top 10 tax issues litigated in Tax Court, District Court, and the Court of Federal 

Claims were not readily available through IRS information systems. IRS did provide three 

existing reports to provide some insight on litigated issues. The reports included the National 

Taxpayer Advocate's Annual Reports to Congress for both fiscal years 1998 and 1999, and IRS' 

Tax Law Complexity Report of June 5, 2000. From our review of the reports, table VI.5 shows the 

rankings of the top 10 litigated tax issues in the Tax Court during fiscal year 1999 for individuals 

who are and are not self-employed. 

Table VI.5: Rankings of Top 10 Tax Court Litigated Tax Issues for Non-Self-Employed and Self-Employed 

Individuals, Fiscal Year 1999 

Litigated tax issues (IRC section) Non-self-employed Self-employed 

Penalty issues (6662 and 6651) 1 1 

Gross income defined (61) 2 6 

Trade or business expenses (162) 3 2 

Earned Income Credit (32) 4 

Head of household (2) 5 

Dependency Exemption (151 and 152) 6 

Theft/Casualty Losses (165) 7 

Compensation for Sickness/Injury (104) 8 

Attorney's fees (7430) 10 

Annuities (72) 10 

Entertainment Expenses (274) 4 

Self-employment Tax (1401 and 1402) 4 

Activity Not Engaged in for Profit (183) 5 

Personal Expenses (262) 8 

Record keeping requirements (6001) 8 

Period of Limitations (6501) 10 

Depreciation of Luxury Autos (280F) 10 

Source: Fiscal year 1999 National Taxpayer Advocate's Annual Report to Congress. 

We did not report data on litigated issues for fiscal year 1998, the other two courts, and other 

types of taxpayers because of IRS' concerns with the data. IRS has done limited and inconsistent 

tracking of litigated tax issues. Prompted by the 1998 IRS Reform Act, IRS has been doing special 

studies--using statistical sample, cases analyses, and anecdotal information--to compile data on 

litigated tax issues, starting in fiscal year 1998. Except for tax court cases in fiscal year 1999 

involving individual taxpayers, these IRS reports made many disclaimers about the quality of the 

data on litigated issues. For this reason, we are not providing the data. The 1998 National 

Taxpayer Advocate's Annual Report to Congress discusses these disclaimers and these data. 
Enclosure VII 

 

124 GAO-01-301R Information on Federal Tax System 

Statistics Associated With Specific Tax Issues in the IRC

Question 26: What data are available on the percentage of Initial Stock Offering (ISO) 

dispositions that are disqualifying dispositions? 

IRS officials said that they have no data on the number of disqualifying stock dispositions (where 

the stock underlying the option is sold either within 2 years after the option is granted or 1 year 

after it is exercised). The information has not been tracked. 

The Securities and Exchange Commission (SEC) also has no data that could be used to identify 

disqualifying dispositions. SEC receives information on ISOs granted to corporate officers and on 

stock sold by these officers, but no data exist that would link the two. In particular, the SEC has 

no way of knowing either whether the shares sold at a given time were acquired through 

exercising an option or when they were acquired. 

Question 27: How many qualified retirement plans—and what types of plans—each year 

are determined to be top heavy and are required to comply with the top heavy 

requirements?14

We reported15 in August 2000, statistics characterizing new private pension plans that reported 

top-heavy status in 1996. These new, top-heavy plans tended to be small, defined contribution 

plans in the service sector of the economy. About 84 percent of the top-heavy plans established 

in 1996 had fewer than 10 participants. Top-heavy status varied widely with plan type, with 

reported frequencies of 67 percent for new defined benefit plans, 58 percent for new defined 

contribution plans without 401(k) features, and less than 10 percent for 401(k) defined 

contribution plans. While 52 percent of all new plans were in the service sector of the economy, 

70 percent of the new top-heavy plans were service firms with most of them being physician, 

dentist, and legal service firms. 

We reported only on new pension plans because we were unable to obtain reliable statistics on 

top-heavy status over the universe of all plans. This shortcoming is largely attributable to a vague 

question on IRS Form 5500, Return/Report of Employee Benefit Plan, that tax-qualified plans 

submit to IRS. 

 

14A plan is deemed top-heavy if more than 60 percent of its contributions and benefits accrue to the top employees—the owners and 

officers of the business. 

15Private Pensions: “Top-Heavy” Rules for Owner-Dominated Plans (GAO/HEHS-00-141, Aug. 31, 2000). 
Enclosure IX 

 

125 GAO-01-301R Information on Federal Tax System 

Comments From the Internal Revenue Service
Enclosure IX 

 

126 GAO-01-301R Information on Federal Tax System 

GAO Contacts and Staff Acknowledgments

Contacts

 Michael Brostek (202) 512-9110 

 Tom Short (202) 512-9110 

Staff Acknowledgments

In addition to those named above, Robert Floren, Cheryl Peterson, Rodney Hobbs, Nick 

Satriano, Susan Baker, Shirley Jones, John Mingus, Joseph Lenart, Marvin McGill, Steven 

Pruitt, James Slaterbeck, and Margaret Vallazza made contributions to this letter. 

(268930)