72dbfullar.pdf - Internal Revenue Service

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Associate Supreme Court Justice Harry Black-mun (right) administers the oath of office toJohnnie M. Walters, Commissioner of InternalRevenue as Mrs . Walters looks on.

Corporation Statistics StaffStatistics. 'Divisiou .m.,

1;

Honorable George P . ShultzSecretary of the Treasury

Washirgton . D . C . 2022 0

Dear Mr . Secretary :

We proudly present to you the Annual Report of the InternalRevenue Service for fiscal year 1972 .

For the first time . receipts surpassed the $200 billion mark,reaching a total of S209 .9 billion . Collections increased inalmost every category, reflecting the good health of the economy,the conscientiousness and good citizenship of Americans, and thededication of the men and women of the Internal Revenue Service .

For this year . in particular . the statistics do not depict

adsqudtely the accomplishments of Service employees, who merit a

"well done" not only for effective collection of the Federalrevenues but also for superb execution of their addedresponsibilities under the Economic Stabilization Program .

Federal tax administration in the United States, with its lowcost per-dollar-collected, fir surpasses the efficiency of revenuegathering efforts in other countries . Yet, we must not rest onthese laurels . We must continue to seek ways to make ouroperations more responsive to the needs of taxpayers so that

voluntary compliance, the backbone of our tax system, will reacheven higher levels .

The Service is striving to provide tax assistance, education,and information to all who ask for it, and to reach out to thosewho are unaware of tax law requirements with pFograms of expandedservic e

In 1972, the Service made substantial progress . and we expectto report greater accomplishments in 1973 .

Sincerely ,

Johnnie M . WaltersCommissioner of Internal Revenue

MISSION OF THE SERVICEThe mission of the Service is to encourage and achieve the highest possible degree of voluntarycompliance with the tax laws and regulations and to maintain the highest degree of public confidencein the efficiency and integrity of the Service . This includes communicating the requirements of thelaw to the public, determining the extent of compliance and causes of noncompliance, and doing allthings feasible for a proper administration and enforcement of the law .

Tremendous Increase in Gross CollectionsOver Thirty Year Period (1942-1972)-

1 .

.I.

- - 11. 1- 1- .1. .1n

THE TAX DOLLARWHERE IT CAME FROM

IFISCsn- YEAR 1972

5. rdn,idn.l In... T.-

Eiic". T .-

3C Eanst, and Gin T-

STATISTICAL HIGHLIGHTS

(Amount (thousand dollars))

WC

Percent1971 1972 Chang e

Gross Collections $191 .647.198 $209,835,737 9.5Individual Income $100,752.421 $10SX79.186 8 .1Corporation Income $30,319,953 $3,11,925.546 15 .2Employm m S39,918.650 $43,714.001 9 .5Estate end Gift $3,784.283 $5,489,969 45 .1Exci se

$16,871,851 $16 .047,036 - 0 .1Rotunda-,

gumbin, 55,916,604 55,154,883 - 1.4Amount $19,022,568 $11111970.6.40 - 0.3

Returns Filed 111,447,000 112,000,449 0.5Returns Examined

Number 164592 1695,11148 30

Tax Increases Recommended $3 :408:3479 $3,413 133 D'AReturns Mathematically Verified :

Number 72,938.000 72,482,000 - 0.6Amount of Tax Increase $313,052 $238,982 -23.7Amount of Tax Decrease $140 .235 $110,408 -14.9

Delinquent Returns Secured :Num r 735,DOO 815,000 10.9Amount $489,359 $452,324 - 7.6

Delinquent Accounts Collected . $2.606,838 $2.327,505 -10.7

REPORT ON OFFICERS

Informing and Assisting TaxpayersEnforcement Activities / 9Special Enforcement Activities / 25Economic Stabilization Activities / 33International Activities / 41Legislative and Legal Activities / 49Planning Activities / 5 5Internal Management and Support Activities / 63Receipts, Refunds and Returns Filed / 73

ORGANIZATION-PRINCIPAL OFFICERS

Organization ofthe Internal Revenue Service / 82Internal Revenue Regions and Districts / 83Principal Officers / 84Historical List of Commissioners / 88

APPENDIXTaxpayer Publications / 96TaxFormActivity / 92CourtDecisions 94Statistical Tables 10 3

NotesAll yearly data are on a fiscal yearbasis, unless otherwise specified . Forexample, data headed "1972" per-tain to the fiscal year ended June 30,1972 and "July 1" inventory itemsunder this heading reflect inventoriesas of July 1, 1971 .

In many tables and charts, figures

have been rounded and may not addto the totals which are based on un-rounded figures .

For sale by the Superintendent ofDocuments, U .S . Government PrintingOffice, Washington. D .C. 20402. Price$1 .75 (paper cover)-domestic post-paid, or$1 .50 GPO BookstoreStock Number 48D4-00591

New Dimensionsin Taxpayer ServiceAs part of the Service's continu-ing commitment to increase as-sistance to taxpayers and im-prove forms and instructions,Commissioner Walters ordered astudy to determine the feasibilityof reintroducing the short-formincome tax return (Form 1040A) .The study produced a simplifiedhalf-sheet size form for reporting1972 taxes which can be used bymore than 30 million taxpayers,or 40 percent of individual in-come tax filers. The RevenueAct of 1971 made an abbreviatedform especially practical becauseof an increase in the standarddeduction and extension of theoptional tax tables to more tax-payers . A simplified form alsowas desirable because of an in-creasing public reliance on com-merical returns preparers, espe-cially among lower income tax-payers. -

In 1972, the Service responded tomore than 41 million taxpayersseeking information and assist-ance with tax matters . Over 19million persons telephoned,about 9 million visited Serviceoffices, and almost 300,000 morewrote. The Service reached 13million through various educa-tional programs .

The Service provided prompt tax-payer assistance through a vari-ety of methods . Centiphone, asystem of toll-free telephonelines to Service offices, wasavailable to taxpayers in 27states . Nationwide, the Servicegave assistance at shopping cen-ters, public libraries, at taxmo-biles stationed at strategic loca-tions to assist low-income tax-payers and senior citizens, andat military installations, nursinghomes, hospitals and other insti-tutions . The Service increasedthe tempo of its assistance to-ward the close of the filing periodby adding more employees to theprogram and extending officehours . It helped more than 500,-000 taxpayers who visited Serviceoffices during the last six days ofthe 1972 filing season .

Taxpayer EducationAids MillionsThis year Service-sponsored tax-payer education programs helpedmore than 13,000,000 taxpayers .

Teaching Taxes, the largest Serv-ice taxpayer education program,provided materials and instruc-tion to 4 .1 million students in23,000 secondary schools. TheTeaching Taxes Program explainsthe tax system and teaches stu-dents to prepare accurate taxreturns .

Tax practitioner Institute pro-grams dealing with tax situationsof farmers, military personneland the general public providedtraining to 54,000 participantswho in turn assisted nearly8,000,000 taxpayers . The Vol-unteer Income Tax Assistance(VITA) Program trained volun-teers who then assisted 300,000low-income and other disadvan-taged taxpayers such as thosewith language problems, theblind, and the deaf . VITA is aprogram in which IRS employeestrain volunteers from the commu-nity to assist disadvantaged tax-payers in preparing their returns.Through VITA, members of di-verse organizations such as com-munity action groups, churches,colleges, and retirement organi-izations assisted taxpayers incommunity centers, Indian reser-vations, churches, store-fronts,hospitals, and elsewhere. Also aspart of the VITA program, the In-stitutes of Lifetime Learning co-ordinated with the Service inproviding assistance to 53,000elderly and retired taxpayers in317 cities . Other national organ-izations will be contacted nextyear to develop similar programsfor their groups .

Many junior colleges, colleges,and universities offered theTeaching Business Taxes Pro-gram with material provided bythe Service. In 1972, some 14,000students in economics, business,and accounting received instruc-tions through this program inpreparing tax forms filed forsmall businesses and corpora-tions.

New Integrated DataRetrieval System (IDRS)Becomes Operationa lThe Service is trying to developand use the most advanced sci-entific methods to speed repliesto the growing number of inquir-ies it receives from taxpayers .

In 1972 the Integrated Data Re-trieval System operated success-fully in the Austin, Texas, ServiceCenter and the six states of the)Region . The key to IDRS is aseries of video display-inquirystations in IRS offices . These sta..tions link to large random-accesscomputer files in an IRS service,center. When the taxpayer visits ;or writes an IRS field office con .cerning his account status, anIRS employee consults the com. .puter by sending a messagethrough the terminal link to theservice center . Within seconds,the computer responds to the in-quiry by flashing a message on avideo screen in the field office.

In addition to providing IRS per-sonnel with almost immediate ac-cess to a particular taxpayer fileand a speedy response to thetaxpayer, IDRS eliminates paperwork and permits rapid updatingof stored information .

The IRS will install the IntegratedData Retrieval System in all serv-ice centers, district offices, andmany other locations in fiscalyear 1973.

Taxpayers ReachedThrough Cooperationof the MediaThis year the Service provided aweekly tax column ("TaxpayersAsk IRS") to 1,508 daily news-papers and 5,986 weekly news-papers . Field personnel reportedheavy usage of the column, es-pecially during the filing period .As a public service, 4,750 radiostations broadcast Service-devel-oped spot announcements and765 television stations carriedfilm spots .

Television stations throughoutthe country gave public servicetime to a 30-minute Service film,providing in dramatized form,general tax information for thepublic . More than 800 motion pic-ture theatres across the countryran a shortened version of thefilm . Radio and television sta-tions also cooperated with IRSdistrict offices in presenting lo-cally developed tax informationprograms .

In addition to hundreds of newsreleases put out by field offices,the National Office issued 135general information news re-leases and 91 technical informa-tion releases directly to the massmedia .

The National Office respondedto over 40,000 media inquirieswhile the field offices answeredMore than 31,000 such inquiries .

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Taxpayer PublicationsExplain the Tax LawThe Service produces severalforms of interpretative publica-tions which explain the tax law innon-technical language. Servicepersonnel revise most of thesepublications annually to reflectchanges in the law, adding newpublications from time to timeand discontinuing others .

The Superintendent of Docu-ments of the Government Print-ing Office and IRS offices handlethe distribution and sales of tax-payer publications. This year,many local offices of the PostalService also sold "Your FederalIncome Tax" and "Tax Guide forSmall Business ." These are twoof the more popular publicationsand the only ones not distributedfree of charge .

"Your Federal Income Tax" con-tinues as one of the Govern-ment's best selling publicationswith 1,873,654 copies sold thisyear .

Service technicians rearrangedthe "Tax Guide for Small Busi-ness" to discuss in sequence thestarting, operating, and dispos-ing of a small business . The pub-lication also covers differences intax treatment of sole proprietor-ships, partnerships, corporations,and electing small business cor-porations .

This year the Service developedfour new publications : "Tax In-formation on United States Sav-ings Bonds," Publication 576 ;"Amortization of Pollution Con-trol Facilities," Publication 577 ;"Guides for Qualification of Pen-sion, Profit-Sharing, and - StockBonus Plans" Publication 778 ;and a Spanish language versionof "Information for Preparationand Filing of the Individual Fed-eral Income Tax Return," Publica-lion 579. For a list of titles of tax-payer publications see page 93 .

Public Informed onEconomic StabilizationProgra min suppgrt of the office of Em-ergency Preparedness, duringPhase I of the President's Eco-nomic Stabilization Program, theService responded to almost8,000 media inquiries ; participat-ed in 68 news conferences, 614radio and 330 television pro-grams ; furnished public speakerson 557 occasions ; and issued 746news releases. A weekly eco-nomic stabilization question andanswer column provided informa-tion to the public through 8,000daily and weekly newspapers .With the move into Phase 11 theService stepped up its informa-tion efforts and issued 1,367 newsreleases publicizing regulationsand informing the public of mat-ters of general interest . The Serv-ice responded to 11,004 mediainquiries ; participated in 58 newsconferences, 784 radio programs

Each year the Samice publishes a number of

Pamphlets and Instructional Packages to as-31st taxpayers in filing return, . Th. P.Mph-lots pictured abom Make UP Only a smallportion of the total tax Information Publica-fl.na issued.

and 446 television programs ; andprovided speakers for 2,938 meet-ings of business associations andother groups . The National Officeprepared 11 radio spot announce-ments for the Cost of LivingCouncil Radio Spotmaster Systemfor use by stations across thecountry .

Spanish LanguageProgra mFor the first time the Serviceundertook a program of provid-ing some tax information in Span-ish for the largest non-Englishspeaking group in the UnitedStates . Through simultaneouspress conferences in New YorkCity, Miami and Los Angeles andnews releases, the Service an-nounced the publication of a newSpanish language guidebook forindividual taxpayers . The Service31SO issued some Spanish lan-guaie news releases and spotannouncements to news mediathat print or broadcast in Span-ish . Spanish speaking Servicepersonnel appeared on radio andtelevision programs to broadcast'ax information .

Publicizing Changes inthe Tax Law-IncreaseIn Withholding Rate sThe Revenue Act of 1971 provid-3d for increased withholding ratesto eliminate the substantial un-derwithholding potential inherentin prior law. In some situations itwas apparent that the new rateswould cause too much tax to bewithheld from the paychecks ofmany taxpayers . To meet thisProblem, the Service conducted

program to inform taxpayers~!bout the latest change in the.,, thholding tables, and of reme-Jes available to prevent exces-,ve withholding .ie Service prepared news re-

:eases and articles and arranged.nterviews with wire services, na-ilonal magazines, and newsletterpublishers . Nearly 900 televisionstations and the networks carriedtwo television spot announce-ments on withholding, and Serv-'ce offices distributed four radiospots to nearly 5,000 stations .

The Commissioner sent letters tomore than 160,000 employers of100 or more persons, explainingchanges in the withholding rates.Service offices distributed copiesof the Employer's Tax Guide(Circular E), which explainedchanges in withholding to 4 .3 mil-lion employers who withhold

taxes from employees . The Serv-ice also sent explanatory lettersto Cabinet members and otherheads of Federal agencies withsizeable groups of employees .

Other Changes in

the Tax La wThe Revenue Act of 1971 broughtabout several other importantchanges for individual and corpo-rate taxpayers . The Service an-swered press inquiries and issuedreleases to inform individualsabout the increased staficlard de-duction, changes in filing require-ments, deductibility of householdand dependent care, limited de-duction or credit for politicalcontributions, and changes in es-timated tax filing requirements .Similar activities for corporatetaxpayers covered Domestic In-ternational Sales Corporations,the Work Incentive Program, theAsset Depreciation Range Sys-tem, and the Investment Credit .

Casualty LossDeductionsMany taxpayers in the East andNorthwest suffered severe lossesdue to flood and wind damage .To assist these taxpayers, Con-gress extended the time to fileamended 1971 tax returns so thattaxpayers can deduct disasterarea casualty losses sustainedafter the tax return filing dead-line . The Service also applied spe-cial techniques to claims for re-fund inihe disaster areas in orderto process them and authorize re-funds within three weeks.

Field offices in affected areasconducted information campaignsstressing local situations . TheNational Office answered pressand taxpayer inquiries on changesin the law and issued news re-leases advising taxpayers in dis-aster areas that they could fileamended 1971 tax returns.

Special ProceduresSpeed Up Processingof DISC RulingsThe Revenue Act of 1971 au-thorized creation of DomesticInternational Sales Corporations(DISC) . The purpose of this legis-lation was to make Americangoods and services more com-petitive * in foreign markets. TheService, in conjunction with theTreasury and Commerce Depart-ments, publicized advantages ofoperating a DISC to Chambers ofCommerce and World Trade Com-mittees in 40 cities.

Technical Interpretationsfor Taxpayers andService Employee sMany individuals and organize-tions write to the Service for in-terpretive assistance in the formof letter rulings where the taxtreatment and implications of theirfinancial transactions are notclear from the tax law regulationsor published rulings .

Taxpayer and field office re-quests for technical interpreta-tions and advice in various taxcategories appear below :

REQUESTS FOR TAX RULINGS & TECHNICAL ADVICE (CLOSINGS )

Taxpayers FieldSubject

Tota l

Actuarial MattersAdministratim ProvisionsAlcohol, Tobacco & Firearms TaxesEmployment & Self-Employment TaxesEngineering QuestionsEstate and Gift TaxesExempt OrganizationsOther Excise TaxesOther Income Tax MattersPension Trusts

Total Requests Requests

18,356 15,702 2,654

453 417 36as 64 21

3,647 2 .754 893264 219 45164 92 72503 "1 62

3.964 3.400 564322 231 91

6,569 6 .248 3212,385 1,836 549

4 - .1 .. - 11 - ~ 5

The Service received 13,671 ap-plications from taxpayers for per-mission to change their account-ing period or method, made 953earnings or profit determinations,and issued 1,336 supplementalgroup rulings to parent exemptorganizations .

Published Rulings andProcedures Guide Taxpayersand Service Personne lRevenue Rulings are publishedpositions of the Service basedprimarily on letter rulings on is-sues of general interest .

Revenue Procedures announceinternal practices and proceduresthat affect taxpayers' rights andobligations .

The table below shows the num-ber of Revenue Rulings and Rev-enue Procedures published dur-ing 1972 in the various tax cate-gories :

Revenue Rulings and RevenueProcedures Publishe d

Type Numbe r

Total 704

Administrative 27Alcohol, Tobacco an d

Firearms 26Employment taxes 41Estate and gift taxes 23Excise taxes 102Exempt organizations 40Income tax 372Pension trusts 65Tax conventions 8

6

Following Examples IllustrateSignificant AdministrativeInterpretations andProcedures Published :Revenue Ruling 71-425 providesthat, subject to ce 'tain guidelinesstated therein, amounts receivedby a participant in a work-train-Ing program, such as a programunder Title V of the EconomicOpportunity Act, are neither in-cludable in gross income nor con-sidered wages for purposes ofwithholding income tax or taxesunder the Federal Insurance Con-tributions Act.

Revenue Ruling 71-447 holds thata private school that otherwisemeets the requirements of sec-tion 501 (c)-(3) of the Code willnot qualify for exemption fromFederal income tax if it does nothave a racially nondiscriminatorypolicy as to students .

Revenue Ruling 71-556 presentsdetailed guidelines for integrationof benefits or contributions inqualified pension or profit-shar-ing plans with benefits providedunder the Social Security Act asamended through June 30, 1971 .(Basic integration rules appearin section 1 .401-3(e) of the regu-lations .)

Revenue Procedures 72-1 through72-9 update and restate the gen-eral procedures

ofthe Service

for issuing rulings and determin-alion letters to taxpayers andtechnical advice to district of-fices .

Bulletin ProvidesOfficial GuidanceThe Service publishes rulings,procedures, and other significanttechnical developments in theweekly Internal Revenue Bulletinfor the guidance of taxpayers,tax practitioners, and Servicepersonnel .

Bulletins in 1972 contained : &t7Revenue Rulings, 57 RevenueProcedures, 14 Public Laws relat-Ing to Internal Revenue matters,5 Committee Reports, 8 ExecutiveOrders, 2 Tax Conventions, 170Treasury Decisions containingnew or amended regulations, 'ItDelegation Orders, 6 Notices ofSuspension and Disbarment frompractice before the Service, and229 announcements

ofgeneral

interest . Bulletins also announced72 notices of acquiescence ornonacquiescence in adverse do-

cisions of the United States Tax

Court. The Service cumulatessemiannually, contents of theWeekly Bulletins and publishesthese as Cumulative Bulletins .

Regulations Aid in theUniform Administrationof Revenue Law sThe Service issues regulations tofurnish its personnel and'th6 pub-lic guidelines to minimize ad-ministrative discretion and en-courage uniformity in applicationof the taxing statutes .

Normally, the Service issues pro-posed regulations through publi-cation of the complete text in ap ublic notice of proposed rulemaking . All notices invite writtencomments on the proposed regu-lations and inform the public ofits right to request a hearing andto comment at the hearing . Afterconsidering the comments andsuggestions, the Service revisesproposed regulations as neces-sary. Preparation and publicationof a Treasury decision in the Fed-eral Register follows . These reg-ulations have the force and effectof law.

At times a new law may requiretaxpayers to make important de-cisions soon after the law's en-actment. To aid such taxpayers,the Service publishes temporaryregulations pending is~uance ofpermanent regulations in the nor-mal manner . Where a notice isunnecessa,ry or impractical, theService publishes regulationswithout a notice of proposed rulemaking .

During the year, the Service held24 public hearings on proposedregulations, with total attendanceover 960 .

The Tax Reform Act of 1969 re-quired 179 regulations projects .The Service also undertook 36projects to clarify changes madeby the Revenue Act of 1971 . Thefollowing appeared in the FederalRegister on projects associatedwith the Tax Reform Act of 1969 :22 Treasury decisions containingfinal regulations ; 3 Treasury deci-sions containing temporary reg-ulations ; and 39 notices of pro-posed rule making. These actionscovered income averaging, capi-tal losses, multiple corporations,charitable remainder trusts, andreserves for losses on mutualsavings banks . The following ap-peared in the Federal Register onprojects associated with the Rev-enue Act of 1971 : 4 Treasury de-cisions containing temporary reg-ulations; and 3 notices of pro-posed rule making . These actionsdealt with investment credit andtreatment of corporations quali-fied as a Domestic InternationalSales Corporation . On projectsnot under the Tax Reform Act of1969 or the Revenue Act of 1971,the following appeared : 24 Treas-ury decisions containing final reg-ulations ; 4 Treasury decisionscontaining temporary regula-tions ; and 22 notices of proposedrule making .

Deductible ContributionsGuide For Donors andService Personne lThe latest biennial revision ofPublication 78, Cumulative List ofExempt Organizati ons

'contains

the names of approx imately 130,-000 organizations . Cumulative bi-monthly supplements, issued in1972 added 11,430 names to anddeleted 943 names from this listof organizations to which contri-butions are deductible for Fed-eral income tax purposes . Thesupplements issued in 1971 add-ed 9,871 names to and deleted1,180 names from the list .

Pension Trust ActivityThe number of new pension andprofit-sharing plans continues toclimb . Based on letters of deter-mination issued in the first threequarters of the fiscal year, cor-porate pension and profit-sharingplans were up approximately31% and 15% respectively. Ap-proximately 35 million peopleparticipated in nongovernmentalpension and profit-sharing plansof various types . Assets of theseplans were

'about $151 billion at

the end of 1972 . The large num-ber of people and huge assetsinvolved in these plans generatedconsiderable interest on the partof the Press and the congress.

Determination Letters Issued on Employee Benefit Plans, FY 1972

Profit sharing Pensionand stock drannulty

It"m bmuss plans -plans

Detemni nation letterre I"uej~.1th-

nelpeln1=91 uslification IQ a plans:Pill. . n .apprered 19,061 : ~Number of Participating

b . Plans disapproved 241,7522. 'Termination of plans3 Armmdmè'n0t1,s"" 7245,7094: in-trnents 317

cases closed without issuance o fdetermination letter and thertlLsposals' 1,618

Tota l

24,855 43,916

538,945230 780,597ass

.2,657 3,38114,075 19,784260 577

2,818 4,436

Alcohol and TobaccoIndustries, and Firearmsand Explosive MaterialsLicensees Notified ofTechnical Change sThe Service issues industry cir-culars to keep the alcohol and to-bacco industries, firearms licens-ees, and explosive materials li-censees informed about require-ments of laws, regulations, rul-ings, and procedures.

The majority of circulars informedindustry members of Treasury De-cislons and/or Revenue Rulings .Topics in the remaining circularsincluded : Environmental impactstatements concerning use ofpolyvinyl choloricle plastic in themanufacture of liquor bottles;changes in design of green stripstamps used on bottled-in-bond-whiskey ; revocation of approvalof various food activities usedin alcoholic beverages ; sale ofexplosive materials to nonper-mittees or nonlicensees ; and ap-plication of Federal explosiveregulations on finished commonfireworks .

The Internal Revenue Service'sresponsibility for regulation of thealcohol and tobacco industriesended at the close of the fiscalyear . The responsibility has beentransferred to the Treasury De-partment . The next chapter pro-vides information on 1972 accom-plishments in the alcohol andtobacco regulated operations .

7

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New Challenges in

EnforcementEnforcement activities help as-sure that taxpayers compute theirtax liabilities properly and pay ac-cording to law. Most important,these activities serve to maintaingeneral confidence in the volun-tary self-assessment system .

In major enforcement develop-ments Commissioner Walters

'launched an investigation of theactivities of incompetent and un-scrupulous tax return preparers .At the same time, the Serviceshouldered new responsibilitiesin the tax investigations of keyfigures engaged in the narcoticstraffic, as part of the president'sWar on Narcotics Trafficers .

The Commissioner, in publicappearances, also expressedconcern about the disparity andinadequacy of judicial sentenceshanded down in tax fraud cases,as well as the questionable prac-tice of some societies and com-,mercial associations promotingconventions and seminars asbusiness endeavors when theyappear to be shallowly disguisedpersonal trips or vacations.

Tax Return Preparer sFor some time the Service hasbeen concerned about unscrupu-lous tax return preparers, their ef-fect on taxes paid, and their effecton voluntary compliance . Investi-gations have disclosed that somepreparers typically increased orcreated deductions, or falsifiedthe number of dependents. Duringthe 1972 filing period, the Servicelaunched a nationwide program toidentify and prosecute such taxreturn preparers. .

Of the 3200 tax prac titioners con-tacted throughout the nation, theService found that more than1,800 prepared inaccurate or falsereturns . The Service has filedcriminal action against practition-ers in 26 states . The program hasled to 430 potential or actualprosecutions so far, and 55 con-victions or guilty pleas .

Throughout the filing period theService worked through the news

10

media in cautioning taxpayers tochoose tax return preparers care-fully.

The Intelligence Division will con-tinue to monitor activities of sus-pected practitioners, and theService will audit, as necessary,individual returns prepared bythem .

Abuses by return preparers inrecent years have led to a numberof bills before Congress to pro-vide for regulation or licensing ofreturn preparers . This appears tohave encouraged an increasingnumber of tax practitioners totake the Service's annual SpecialEnrollment Examination to qualifyfor practice before the Service .

Deceptive Trade Practices byCommercial Tax ReturnPreparers

A side from evidence of improper

returns preparation, it appearsthat the search for increased busi-ness by preparers has led to anumber of deceptive trade prac-tices, including misleading ad-vertising, misleading guarantees,and using customer's tax informa-tion for preparation of mailinglists and other unauthorized pur-poses.

Number of tax returns examine d

(Figures in thousands)

Type of return

Tota l

1971

Grand total 1,646

Income tax, total 1,487corporation 130Individual and fiduciary 1,346

Exempt organization 11Estate and gift tax 41Excise and employment tax 117

I less than 1,000 .

The Service and the FederalTrade Commission have con-ferred to combat these abuses,(For a description of pending leg-islativip proposals see page 57 .)Some of the nations' largest re-turns preparation firms have en-tered into agreements with theFederal Trade Commission con-senting to a cease and desist or-der on deceptive trade practices .A number of other agreementsare pending approval . Further,the Revenue Act of 1971 prohibitsuse of a customers' confidentialtax information for purposesother than the preparation of taxreturns .

Examination Result sIn 1972, the Service examined1,695,849 returns, 49,920 morethan the preceding year, revers-ing a nine year downward trend .Recommendations for additionalassessments reached $3.413 bil-lion . The total included $1 .2 bil-lion in additional tax and penal-ties recommended underthe teamaudit approach used to examinelarge corporations . Examinationscover verification of income, de-ductions, and computation itemsreported on returns.

Individual and fiduciary returnscomprised 79.2 percent of all ex-aminations, and accounted for29 .3 percent of the additional taxrecommended, while corporationreturns accounted for over 50 percent of the additional tax recom-mended.

The table below shows the num-ber of returns examined in 1971and 1972 by type of tax .

Field Mile.

1972 1971 1972 1971 1972

1,696 566 593 2,080 1,103

1,497 429 424 1,058 1,073138 129 135 1 1

1,3" 289 271 1,057 1,072is 11 is (1) V)40 36 35 4 5158 100 133 is 25

The audit activity made impres-sive gains this year in reducingits inventory . By the end of theyear, prior year returns in inven-tory were at the lowest level since1963 .

Greater Reliance Placedon Computers To SelectReturns for AuditIn 1969, the Service Introducedthe Discriminant Function System(DIF), to select returns for exam-ination . The system uses comput-e rs; to classify and rank individualincome tax returns by error po-tential . In that way the Servicecan select returns with the high-est probability of errors.

In addition to producing a highertax yield, the system assures uni-formity by using the same criteriato screen all individual incometax returns . Another advantage, isfewer audits that result in no taxchanges, thus improving taxpayerrelations and operational effi-ciency. This year, the Serviceagreed with the tax liabilities re-ported by taxpayers in 32 percentof the returns audited, a recordlow.

Number of Tax Returns Examined

Percent of Total Returns Examinedby Type of Tax

Additional Tax and Penalties Recommende d

!;d"

".r%

.1,

U .6E-1

Percent of Total Additional TaxRecommended by Type of Tax

9-

Studying output data for a joint audit-inteill .pence Investigation 1, the Ogden ServiceCenter ..movie, .am a,.: (L to .) HenryPhilcox, Computer Audit Specialist, Renoviwftl~ Ralph IngbWear, Assistant DivisionChief, Data Convention, Ogden Service Can.ht';

and ClIff Rich, Weals. Regional Inf.1li-g.rc. Analyst.

Increased ComputerAssisted Audit sComputer assisted techniquesplay an important role in tax au-dits of automatic data processingaccounting systems . Largemasses of data which meet pre-determined audit criteria arescanned, analyzed, and recom-puted at tremendous speed . Thistechnique produces printouts ofmanageable size, thus savingconsiderable resources for theService and taxpayers .

Revenue Ruling 71-20, requiresthat taxpayers retain pertinentcomputerized tax records . TheService has completed recordevaluation requests for a substan-tial number of taxpayers. Afterevaluation, Service personnel ad-vise the taxpayers as to whichrecords to retain in machine-.sensible form .

Joint Committee

Reviews Large

Overassessments

A report on all refunds and credits ;on income, estate and gift taxes,over $100,000 must be sent to theJoint Committee on Internal Rev-enue Taxation, as required bylaw . During 1972, the Service re-ported 1,171 cases involving over-assessments of $756.1 million tothe Joint Committee, as com-pared with 790 cases and $518 .3million in overassessments in1971 .

Exempt OrganizationProgramExempt organizations classifiedas private foundations reportedmore than $4 .3 million as initialtaxes under the excise tax provi-sions of the Tax Reform Act of1969 .

The Service makes every effort tokeep pace with its two-year auditcycle for large exempt organiza-tions and its five-year cycle forprivate foundations . In 1972, theService issued determination let-ters to 23 thousand organizationsthat applied for confirmation oftax exempt status under the law.In addition, the Service withdrewadvance assurance of the deduct-ibility of contributions from 45 pri-vate schools that failed to estab-lish a racially nondiscriminatoryadmissions policy.

The Exempt Organization MasterFile (EOMF) continued to grow.The number of exempt organize-lions in the file has increasedfrom 309 , 000 in 1967 to 535,00D in1972 . The rate of growth in 1972was almost 5 percent .

Team Audit TechniqueUsed for LargeTaxpayersThe Audit Division uses the teamaudit technique in examing com-plex corporate structures . Manycorporations have diverse activi-ties, intricate practices and trans-actions, and widely dispersedoperations across the nation andin foreign countries For thesereasons, the teams ~ay requireengineer agents, internationalexaminers, actuaries, data proc-essing specialists, attorneys, stat-isticians, and economists .

Expansion of AuditConcepts to ServiceCentersService centers conducted sev-eral correspondence aydit pro-grams in 1972, including the newUnallowable Items Program . Thisis a low cost audit program whichuses computers to contact tax-payers about deductions whichappear to be unallowable by law.Typical unallowable items Includedividends exclusions in excess ofthe amount allowable, failure toreduce medical expenses by thepercent of adjusted gross income,and the taking of fractional ex-emptions . In the period of Janu-ary 1 to June 30, the Service cor-rected 452,521 unallowable itemsreturns producing revenue of$24 .2 million.The Information DocumentMatching Program matches infor-mation documents and other rec-ords filed with the Service with in-formation reported on individualtax returns, thereby identifyingpersons who failed to report all oftheir income . Forms W-2 (Wageand Tax Statement) and Forms1099 (U .S . Information Return)are principally used in this pro-gram .The Multiple Filer Audit Programbegan in the final months of 1972 .Computers analyzed individualreturns to determine If more thanone return had been filed underthe same social security number .In, many instances, married tax-payers filed two joint returns orseparate returns and claimed du-plicate exemptions or deduc-tions, usually because of a mis-understanding in filing require-ments . The Service sent lettersto taxpayers explaining the errorand proper return filing require-ments and statements of addi-tional tax due,

Art Panel Assistsin Evaluation sSince 1968, a panel of art expertshas been assisting the Service indetermining whether realistic val-uations have been placed on con-tributed works of art and on artobjects valued for estate tax pur-poses .The panel met three times in 1972and reviewed 711 works of artvalued in tax returns at more than$18 million . The panel recom-mended a 30 percent reduction Inthe claimed value of works of artfor charitable contributions anda 25 percent increase in the valueof art objects included in estates .In its four years of operation, thepanel has reviewed approximate-ly $70 million worth of art and hasrecommended adjustments of ap-proximately $20 million .

12 13

Administrative AppealsSystemGeneralThe appeals function of the Serv-ice provides the taxpayer who dis-agrees with a proposed adjust-ment to his tax liability an oppor-tunity for an early, independentreview of his case. The purposeis to enable the taxpayer to settlehis case promptly, without litiga-tion, on a fair and impartial basis .The appeals function is decen-tralized and operates in 58 dis-trict offices and 40 regional ap-pellate offices. As need arises,the Service provides conferencesat other locations . The taxpayercan go to either the district or re-gional office for an Initial confer-ence .Although differences in authorityand jurisdiction exist, both dis-trict and regional offices have thesame objective-to resolve casesas soon as possible on a basiswhich reflects a fair administra-tion of the law . The principal dif-ference in authority is that onlyregional appellate offices maydispose of cases by consideringhazards of litigation, that is, un-certainty as to outcome in theevent of trial . The appellate divi-sion has this authority in keepingwith longstanding Service policywhich favors administrative set-tlements over protracted litiga-tion .

Cases considered involve alltypes of taxes except those onalcohol, tobacco, firearms, nar-cotics and wagering . Issues runfrom the most elementary to themost complex, and deficienciesin tax from a few dollars to manymillions . Claims for refund of taxand offers in compromise alsorate consideration.

In most cases Service confereesand taxpayers reach a mutuallyacceptable basis for resolving thedispute, as a result, a relativelyfew cases actually go to trial . TheService closed over 98 percent ofall cases without trial in the lastseven years, and this year the ap-peals function achieved the great-est number of case disposals perconferee in history .

District Conference C. .. W .,X-I ..d

Case pending JulyCos" receivedConference complat

Number agreedAgreed as a percent Of total

Cases pending June 30

Early InformalHearing ProvidedAt both district and appellate lev-els, the Service offers a confer-ence soon after the case is re-calved . To the extent possitFle,the Service arranges a date, time,and place most convenient to thetaxpayer. Where the disputed taxis less than $2,500, the taxpayerneed not file a written protest forconference in the district office.The same rule applies In the re-glonal appellate office if the tax-payer has first availed himself ofa district conference .

Informal proceedings prevail atboth levels and the taxpayer mayrepresent himself or have coun-sel . If a conference fails to pro-duce agreement, the Service in-forms the taxpayer of his addi-tional rights and options .In 1972, the appeals function dis-posed of 52,189 cases by agree-ment ; the Tax Court decided1,096 cases ; U .S . District Courts,and the Court of Claims decided460 cases.About half of the cases closed byagreement are at the district leveland half at the appellate level .District conference staffs ob-tained agreement on about two-thirds of the cases . Activity in thedistrict conference staffs appearin the table below :

Field OfficeAudit Audit Total

8,769 3,1125 12,59424.882 17 .250 42,13224,141 166 8 40,7691 1 11 :8 24.86 53 26,714

61.5 71.2 65.591510 4,447 23,957

Appeal Options Availableto TaxpayerIf there is no agreement at eitherdistrict or regional level, the tax-payer can, in most instances,file an appeal with the Tax Court .Even though this is done, and thecase is docketed for trial, the tax-payer may still reach a settlementwith the appellate office . Exceptin unusual circumstances, thetimely filing of an appeal with theTax Court stays the assessmentand collection of the tax until theCourt has entered its decision .

As an alternative to trial in the TaxCourt, the taxpayer can pay thedeficiency in tax, file a claim forrefund (at any time within twoyears from date of payment) andafter either denial of the claim bythe Service, or after 6 monthsfrom date of filing, enter suit forrecovery against the Governmentin either . a United States districtcourt or the Court of Claims .

Appellate Receiptsand DisposalsReceipts in regional appellate of-fices had remained even at about33,000 cases in each of the pastfour years . This year receipts in-creased to 34,278. Both non-docketed and docketed case re-ceipts increased over the prioryear .

There also was a substantial in-crease in docketed cases involv-ing $1,000 or less of disputed tax(for which special simplified pro-visions were made in the Tax Re-form Act of 1969) . In 1968, theService received 972 cases ; in1969, 1970, 1971 and 1972 re-ceipts were 1,267, 2,100, 2,781and 3,321, respectively. Most ofthese cases were ultimately set-tled .

About 75 percent of the appellateworkload consists of nondoc-keted income, estate, gift, exiseand employment tax cases. In1972, appellate offices closed 78percent of these cases by agree-ment with the taxpayer . Agree-ments in this category have aver-aged more than 80 percent overthe past 5 years.

Taxpayers filed petitions for hear-ings before the Tax Court in 8,945cases in 1972, as compared to6,968 cases in 1970 and 8,299cases in 1971 . The increase waslargely in the small case categorywhere the Service offers informalprocedures . Settlement negotia-tions on docketed cases continueand most cases are ultimatelysettled without trial .

The following table and chartshows the processing of bothnondocketed and docketed casesI n 1971 and 1972 . (For additionalinformation see tables 12 and 13,page 123 ) .

Appellate Division processing of all cases for 1971-1972 (Income, estate, gift, exci ..,employment, and offers-in-compromise)

Statu s

Pending July IReceivedDisposed of, Tota l

By agreementUnagreed (overassessments, claims, excise. employment,

and ffer-in-c-promise rejections )Bytaxpayer default on statutory notice of dismisse( by

Tax CourtBy petition to the Tax CourtTried in the Tax Court

Pending June 30

Failure To Pay by thePrescribed DateThe Service makes every reason-able effort to collect taxes due,starting with notices to taxpayersrequesting payment and then es-tablishing delinquent accountsfor assignment to enforcementpersonnel .

New DelinquentAccounts Dro pEstablishment of delinquent ac-counts declined in 1972 despitecontinued growth in populationand taxable income . Principal fac-tors were : (1) increased use of th e

Number of cases1971 1972

33,468 33,49132 .682 34,27832.659 22,89825 .804 25,475

1,474 1 .885

1,602 1 .8552,814 2,58 7965 1,096

33,491 34,87 1

APPEALS- DISPOSALS IN REGIONAL APPELLATE DIVISION OFFICE S

Is-

NONDOCXUED CASES CASES DOCKETED IN TAX COURT

I.-Asa

IN DEPARTMENT OFJUSTICE ON

REFUND SUITS

- I-

14 is

I

essing system to mail out tax bills ;(2) the impact of recent tax legis-lation which removed many lowincome taxpayers from the taxrolls ; and (3) some easing in eco-nomic conditions . The Service es-tablished 2.6 million delinquentaccounts, 202,000 or 7 .2 percentfewer than last year . The amountof delinquent tax also dropped by$298 million or 8 .5 percent to$3 .2 billion.

Disposals Down Slightly ButInventory Down SharplyThe Service disposed of 2 .7 mil-lion delinquent accounts in 1972 .This was a decline of 138,000accounts or 4 .8 percent below1971 . Delinquent taxes collectedamounted to $2 .2 billion, which is$265 million below 1971 .

The relatively small reduction indisposals is evidence of notableaccomplishment considering : (1)increased budgetary limitations ;(2) heavy manpower demands im-posed by the Economic Stabiliza-tion Program which drained 1 .3million man hours from this en-forcement area ; and (3) expandedTaxpayer Service activity insti-tuted in April, which further lim-ited available manpower.'

For the second successive year,the inventory of delinquent ac-counts declined . The 1972 levelof 659,000 accounts is the lowestpoint reached since 1965, andrepresents a reduction of 100,000accounts, or 13 .2 percent, below1971 . The $1 .9 billion value ofthese accounts is $2.4 million lessthan the prior year's .

Taxpayer Delinquent Accounts

Status

- Us sa .- ut rrompixidentification of FederalTax Deposit OffendersThe Service is concerned espe-cially with the failure of employ-ers to deposit taxes withheld fromemployees' wages because in ef-fect, it represents a misappropria-tion of funds that belong to theGovernment. To combat the prob-lem, the Service initiated a Fed-eral Tax Deposit (FTD) Alert Pro-gram . The program involves earlyidentification of potential offend-ers through use of data process-ing . The system determines whichemployers,have failed to make de-posits . A notice then alerts an en-forcement officer who calls on theemployer to determine why he hasnot complied .

Automatic DataProcessing SystemAids Program AgainstDelinquent Filer sThe Service's automatic dataprocessing system played a majorrole in detecting non-filers, firstby monitoring and following uppreselected types; of delinquentaccounts, and secondly by in-creasing the use of four masterfiles to issue automatic delin-quency notices or investigations.These factors permitted a greaterdevelopment of enforcement per-sonnel in seeking out non-filers,thereby reversing the fall-off thathad occurred in recent years be-cause of budgetary limitations .

Number Amount(thoussend .) (thousand dollars)

197 1

Issued 2.4121Disposed, mal 2,847

By type of action:Collected 2,265Additional Collections -011her Disposals' 51

2Pendina June 30, total 759

1972 1971 1972

2.619 $3,509,677 $3.211,963

2.709 3,579,694 3,337,947

2,164 2,498,077 2=2.953- 108,761 S4 .632

546 972,856 1,010,364659 $1,899,804 $11,897 .38 4

I includes disposals due to nc .liectibility, erroneous and duplicate assessments, Pay-

Mont tracer and adjustment cases .

16

I axpayer Uelinquent Accounts

Millicepus of Dollars35 "310 3212

1EsUblished Closed

38

Increase in Number ofDelinquent Returns SecuredThe Service secured 815,000 de-linquent returns valued at $452million . This compares with 735,-000 delinquent returns assessedat $489 million in fiscal year 1971 . *

Master Files-The OperationalFoundation of Tax DelinquentReturns Progra mThe business master file (BMF),the individual master file (IMF),the exempt organization masterfile (EOMF), and the residual mas-ter file (RMF) provide the opera-tional foundation for a major por-tion of delinquent returns activity.Each has a routine tailored tomeet variations in tax regulationsand filing requirements and issuesa delinquency notice or investiga-tion in every apparent non-filersituation .

The business master file dealswith several classes of tax. TheService can program BMF to de-liver a single investigation for oneor more tax periods during theyear . This elminates massive pa-perwork as well as multiple an-.forcement contacts, since the

computer will not issue anotherinvestigation or accept as satis-factory any completed investiga-tion which does not satisfy allperiods of delinquency .

The in'dividual master file pro-

vides an annual delinquencycheck for instances of non-filingof individual income tax returns .

The exempt organization masterfile (EOMF) is relatively new. Pro-grams implemented under EOMFprovide for issuing delinquencyletters and taxpayer delinquencyinvestigations .

The residual master file (RMF)provides processing and handlingoperations for a variety of returnsof limited volume or unusual char-acteristics which did not adaptwell to earlier mechanization . TheRMF also provides timely issu-ance of delinquency notices andsubsequent delinquency investi-gations whenever required re-turns are not forthcoming .

Over half of all apparent non-filercases are resolved through com-puter generated issuances . Fortax year 1970, the I ndividual mas-ter file selected over 500,000 non-filer cases for delinquency check-ing, over twice as many as everbefore .

New Programs in

Returns ComplianceAmong several specialized pro-grams in progress is a survey of12,000 airport facilities across thecountry to insure compliance withtax provisions of the Airport andAirway Revenue Act of 1970. An-other program involves a nation-wide effort to achieve a higherlevel of compliance with FederalHighway Use Tax laws. Throughuse of available information, theService will identify virtually allmotor vehicles, or vehicle own-ers potentially liable for this tax .Expected benefits include a sub-stantial revenue return and great-er awareness of the tax require-ments among all segments of thetruck-owning public .

Returns compliance programs un-derway and planned involve co-ordination with nearly every mal. orFederal department or agencyand a number of private firms . TheServic& compares data fromthese sources against the variousmaster tax files for possible de-linquency .

While actual tax liabilities of sometaxpayers may be slight in com-parison with their neighbor's, alltaxpayers have an obligation tofile what is required and pay whatis due. Thus, the Service includesa significant number of individ-uals and smaller business enti-ties .

Enforcement ApproachGeared to ReduceNon-ComplianceThe Service trains enforcementpersonnel to review all possiblereturns delinquencies whenevertaxpayers are interviewed in ap-parent non-filer situations . For ex-ample, a self-employed individual,delinquent in filing an income taxreturn, may not have filed returnsfor recent income tax periods .The Service will also check forbusiness tax returns if the tax-payer employs other people, orfor excise tax returns if required .

Results fromDirect Enforcement

Maps. of wisrs

I'll

1.

Tax Fraud Investigationsand the IntelligenceDivisio nThe Intelligence Division Identi-fies areas of noncompliance andenforces the criminal sanctions ofthe Internal Revenue Code. TheIntelligence function employedover 3000 technical and clericalemployees in 1972 .

Tax Fraud Investigations,Indictments, and ConvictionsThe Service completed 8,882fraud investigations during theyear, with prosecution recom-mended in 1,777 cases . Agentsscreened more than 132,000 alle-gations of fraud in selecting theinvestigative caseload .

Grand juries indicted 1,074 de-fendants in tax fraud cases in fis-cal 1972 . A total of 772 defendantspleaded guilty ; courts convicted113 defendants after trial and ac-quitted 39, and dismissed 137 .

Intelligence ComplianceProgra mThe Service conducted a programI identify patterns of noncompli-o fance by homogeneous groups of

taxpayers, and areas of noncom-pliance not covered in other pro-grams .

Service investigators made com-pliance checks of more than 250professions, occupations, busi-nesses, industries, and income in-formation sources . Among pock-ets of noncompliance locatedwere sub-contractors in the con-struction Industry, area managersin the direct selling industry, in-surance salesmen, recipients ofland condemnation awards, at-tomeys, and persons liable forhighway use taxes . The Serviceimposes criminal sanctions whereevidence of tax evasion is discov-ered, and takes remedial action toassure future compliance .For example, offices in severalareas inquired into compliancewith reporting income require-ments by private duty nurses .All offices found noncompliancewhere payments were made incash without issuing information

17

documents (Forms 1099 or W-2) .In one district, the State NursesAssociation published an articleon the results of the compliancetest, advising nurses to reporttheir income from private assign-ments .

Another project involved scrapmetal and textile waste operators .Here, agents examined 258 re-turns and recommended defi-ciencies of $488,307 . They alsorecommended prosecution of fiveindustry officials .

The impact on voluntary compli-ance is apparent. Agents ex-amined returns of hospital med-ical employees who had notreported wages paid from schol-arship funds . The major hospitalswhich had been paying employ-ees from scholarship funds trans-ferred $500,000 annually to ac-counts to be included in futurewithholding tax statements .

Another investigation disclosed$3.4 million in unreported incomeearned by policemen in a largemetropolitan area . More than1900 policemen had not reportedon their tax returns earnings fromprivate employers for police re-lated security jobs, such asguarding property, crowd control,and watching for shoplifters . Thepolice department assigned po-licemen on a rotation basis. Fiveemployers paid the departmentwhich in turn paid the policemen.The department did not withholdtax or file information reports.City officials cooperated in cor-recting the situation .

A midwestern district found thathouse-to-house cosmetics salescan be big business . A revenueagent audited a parent corpora-tion and recorded serial numbersof United Savings Bonds awardedas prizes to sales persons whosold at least $3,000 in cosmeticsduring an eighteen-week period .The firm had awarded as prizesapproximately $4,000,000 inUnited States Savings Bonds . Aninspection of the tax returns ofknown sales representatives dis-closed that 80 percent eitherfailed to file or made no mentionof theirselling activity.

The Service had found that zonemanagers receive millions of dol-lars in promotional expenses withno accounting required nor with-holding statements issued . Onecompany disburses about $650,-000 in promotional expenses eachyear . This same company payscommissions of about $11,000,000a year of which only $3,000,000appears on information returns .

Sentencing i nTax Evasion CasesNationwide, only 43 percent ofthose convicted in income taxcases received jail terms . Com-parisons of the sentencing prac-tices by judicial districts reflectwide disparities .

In the first quarter of 1972 for ex-ample, courts in the Eastern Dis-trict of Michigan handed down 10sentences and imposed no prisonterms . Four of the cases involvedadditional taxes and penallties of$95,250, $203,552, $191,399, and$164,664 . During the same period,the court in the Central Distri ct

ofCalifornia ordered no confine-ments for six tax evasion convicts .On the other hand, tax violatorsgo to jail in the Southern Districtof Texas . Three recent sentencesincluded a six-month term andtwo four-year terms.

In Philadelphia, courts orderedconfinement for ten income taxevaders . They are : EDWARD P.SWARTZ, a physician and formerPublic Health Director, six-monthjail sentence ; MORRIS WEINER,• prominent dress manufacturer,• one-year prison sentence ;JOHN C . PARENTI, a major rack-eteer, a one-year prison sentence ;IRVING H . MYERS, a business ex-ecutive, a one-year sentence ;PAUL G . HOFFMAN, a restaurantoperator, 100 days imprisonment ;ANTHONY KLIJJIAN, a roofingcontractor, six months imprison-ment ; ANTHONY LEMISCH, avoting machines salesman, sixmonths imprisonment ; WILLIAMJ. KILROY, a "political expe-ditor", 90 days imprisonment ;LOUIS SALERNO, 60 days impris-onment; and FRED L . MATHERNfour months imprisonment . Someof these defendants also paidlarge fines .

Interesting CasesThe court fined Dan B . Ball, a for-mer county judge, $30,000 andplaced him on five years proba-tion forevading part of his incometaxes over a four-year period .During these four years, he pre-pared more than 800 income taxreturns for other people.John S . Allessio, a race track offi-clal, received three years inprison and a $20,000 fine for in-come tax evasion ; and his broth-er, Angelo Allessio, also asso-ciated with the race track, re-calved a sentence of one year inprison and a fine of $20,000 . Ad-d it ional taxes and penalties in thecase exceeded $6,000,000.

Gregory Taylor, a narcotics dis-tributor, received a sentence offive years in prison and a fine of$30,000 for income tax evasion .A lengthy arrest record and sev-eral previous prison confine-ments, plus the cooperation ofthe U .S . Bureau of Engraving andPrinting helped to refute his claimof a cash hoard used to pay forsubstantial real estate, automo-biles, jewelry, and other expendi-tures.

Lee W. Merrich, a dog food proc..essor, received a sentence ofeighteen months in prison for in-come tax evasion on unreportedsales of $170,000 . Cooperationfrom Canadian tax authoritiesmade it possible to locate cur-rency deposits of $142,000 in aCanadian bank account. He hadmade the bulk of unniported salesto a wholesaler of meat for humanconsumption . This meat camefrom the same supply processedfor dog food sales.

Morris Greenberg, an attorney,received a sentence of ninetydays in prison and a fine of $to,-000 for failure to file interestequalization tax returns . One in-criminating factor was a letter hehad written to a Canadian stocktransfer agent explaining the in-terest equalization tax provisions .

Emmett J . Ayo, a night club oper-ator, received a sentence of threeyears in prison for income taxevasion after understating incomeby $228,000 over a four year pe-riod .

Phillip Armento, Sr ., a county as-sessor, received a sentence ofthree years in prison for incometax evasion . This scheme in-volved special handling of per-sonal property tax bills and realestate valuations for fees not re-ported on his tax returns .

Lionel E . Clark, a former countyjudge received a sentence of oneyear in prison for failure to fileincome tax returns for four years.During this period his gross in-come was $62,352.

Nelson E . Weber,, an aircraft in-surance executive, received aprison term through revocation ofprobation of a previous tax eva-sion sentence . Part of the condi-tions of probation involved fullsettlement of his $170,000 taxliability . Instead, he filed an offerin compromise proposing to set-tie his liability for $10,000 basedon stated assets of only $13,000 .Agents discovered an undis-closed safe deposit box contain-ing over $219,000 . They seizedthe money to apply to his taxliability.

James G . Waller, a funeral homedirector, received a sentence ofthree years in prison for under-stating business receipts by$210,000 .

Referrals to the

Department of JusticeThis year, the Service forwardedprosecution recommiendations tothe Department of Justice in 1,355income and miscellaneous crim-inal cases (involving 1,364 pros-pective defendants) . Comparedwith the prior year, this was anincrease of 33 percent in the num-ber of referrals. In 1972, indict-ments in such cases were up 13percent .

In income, excise, and wageringtax criminal cases, the court re-sults included : 733 guilty or nolocontenclere (no contest) pleas,113 convictions after trial, 40acquittals, and 151 dismissals .

A comparison of indictments andcourt actions for the last twoyears follows :

Results of criminal action in tax fraud cases

Action

TotalIrldicinnentsand InformationsDisposals, total

Pleal, guilty or noJo contenclereConvicted after trialAcquitted .

Nol-prossed or dismissedIncome and rni.-Urmeou..-I

Indictments and Information sDisposals, tota l

Plea, guilty or nolo countendereConvicted after tria lAcquittedNol-plasslid or dismissed

Wagering Tax Calue sI rolictments and informationsDisposals, total

Ples, guilty or mlo contemi-Convicted afterth-lial lAcquitted 2 1Nol-prossed or dismissed 21 14

Include cases dismissed for the following reasons : 10 because of d path of principalde~endant, S6 because of serious illness, and 102 because principal defendant had pleadedguilty or had been convicted in . related case .

2 Includes income, estate, gift, and excise taxes other than wagering, alcohol, tobacco,and firearms taxes .

Cases Involving

Criminal ProsecutionCases received in the Chief Q*oun-sets' Office with recommenda-tions of criminal prosecution in-volved additional taxes and pen-alties of $193 million. This was$14 million more than the prioryear. An analysis of the receiptand disposal of criminal cases inthe Chief Counsel's Office fol-lows :

Receipt and disposal of criminal cases in Chief Counsel's Offic e

PemdIn87j6fy IReceived, total

1071

2,266----

With recommendations for pnrsecutfonWith requests for opinion, etc .

Oisposed of, totalProsecution mot %varrantedDepartment of Justice deeClinedProsecutionsOpinions deliveredAll other closings

Pending June 30

IsNumbefoldefenciants_71 1972

956 IM5997 1=7645 723142 113

-S340

.,0574,i'm 1

638 722136 11355 3996,

t 32 137I I r 1

4 1136 267 11

6

2,3131.204

1091r052

7948

75946

1202,467

1972

1,523'157

1,285

9457I,Wssa

1972,7

18 19

(Million, of dollars)

I __. . . . .. . ieve, or me U. system beat! years 1971 and 197 2

hmernal ravennue collections .tout T19-1-16117-11 -209 .856

Individual income taxes. totalDo

['1118A79Wildholding INZ. aa~trfoOtt,

Zt= 15,STGCorporation income taxes

0=034=9

133 .784Estate amd4ift taxes 5,490Employment taxes 43,7143

;18Eachgo tax 16 72 16.847

I a

Civil Causes

Additional to . and joeirlaftleff inci-5 INS~ of I .ounift divisions by Agreement. payment for cletauft

Additional tax and penalties in aeas disposed ofin appellate divisions by agreammult, paymentof defaul t

Additional taxand penalties determined by

itardthemeort Wr= Goo dAdditiortual tax&W penalties determined by Tax

Court decisions:DismissedDecisions an merits

Additional tax gold penalties in cieses, decided trysuperame

court"n" c"M of appeals,b'V.M

MfUnded to taxpayous as . result of refund. -it,

I fraud cases t

Deficiencies and penalties In cases disposed of in

ProosCatio-VoomemandedPwaseatior, net warranted and caseeideclined byDeptuanent

of Justice

1,499 1,41 9

349

101

21229

57

172

25

106

S17

2643

223

I Includes excise taxes

rross tax, penalties and interest resulting from direct nfa,.. . .nt

(in Thousands of dollars )

His.

Additional tax. penalties. and interest aS%esW, total

Free" "'"'Instionof tax returns, total

;ncema tax, totalCgirpongtion

4IE2

~4=705 1 4~iilild?2,708,153 1 3,203,7242.250,813 2,101113,21121,5m=3 1,127 .241

747,25D 156,021345,210 =114362,508 VSA3449.S52 =405

M3 052 11 :2512:141 174oM489 .359 t .432.324

Este IndlVidual and fiduciaryteand gift tax

Emplumolse, tax (including withhold income Me)Excise tax

lend" engtheromUcal va"ificaften of income tax returnsFinam Inevillhattion of estimated to. payments claimed f jFrom delinquent returns secured. tout

fly district collection divisions13Y district alldit divisions

I 427 647 ZN 67061 :712 711 :i~i

Tax and penalty and number of tax years involved in criminal fraud case disposal .

(Exclusive of wagering and coln-apemted gaming device ages)

mistrastitich971 1972

Total 2= 3.344

$107 77g,4Z3 $"'112t,7742,509 JIM i~~7,951 ss.Tn=7Proseecutions 2

Aflothercldofhhfdf~ 454 37,330,"r, 22 3315 477

includes cases declined by Department of Justice,

20

Summary of Additional

Taxes from Direct

Enforcement

Additional revenue resulting fromdirect enforcement historicallyhas represented a relatively smallpart of total tax collections, Themain imp6rtance of direct en,forcement cannot be expressed indollars . Its importance lies in re-assuring the public that the Serv-ice has an effective enforcementsystem, and a balanced programaimed at equitable enforcementof the law for all taxpayers, re-gardiess of position or wealth.

The table below sets forth for thelast two years the source of addi-tional tax, penalities, and interestassesed and certain other resultsof direct enforcement .

Additional detail on legal work-load involved in the prosecutionof criminal cases by Service at-torneys during the past two yearsappears in the table at the left .

Workflow in the Serviceand the CourtsThe unit of measurement at theaudit level is a return . In the Ap-pellate and Intelligence Divisions,as well as in the courts, the workunit is the case . A case may in-volve more than one return andmore than one taxpayer. The ta-ble at the right reflects compara-tive data on actions completedby the Service during 1971 and1972 .

End of Era inRegulated OperationsThe Internal Revenue Service'sresponsibility for regulation of thealcohol and tobacco industries toassure compliance with variousFederal requirements ended atthe close of fiscal year 1972 after110 years . This responsibility andfirearms control activities, havebeen transferred to the TreasuryDepartment's Bureau of AlcoholTobacco and Firearms . In 197~the number of plants regulatedremained fairly stable, as did thenumber of activities requiringcompliance inspections . The ta-ble at the right and the firsttable on the next page reflectproduction volume and revenuecontrol manpower use for fiscalyear 1972 .

0 - 13 - 3

Workflow in the Internal Revenue Service and the courts, fiscal years 1971 and 107 2

'TWiri6mis India, teiaF-

Individual incomeCorporation incomeEstate and giftEmploy. tExciseOther income

Income, Estate, *no G

iF

L li,71 -72~W,446,§30 '111240111.449

76,619,563 77,105AS31,820,556 1 sibl'al 9

314 .913 =157621 .889 .343 22AO7435

2,400,704 11,3110,812L_2.401,85

- 19 .312.21 4

Number of refurims examined (Including terms 9901 1,5N,454 1,U7,30it fir djustments proposed by audit divisions 1.006,W 1,024.005Disposed of by audit divisions:

Agreed. paid, or obstaild led 956,311 111113.21160 me with 8It'a 46,119 36,723Transferred to appella

other 3,895 t 4,036

ciol cew sTotal received in appellate, division =LiVADisposed of by appellate divisions: Agreed,pald, or

defaulted 20--77 18,883L~o.ft. of .49inall jurisdiction !

Total petitioned to Tax Court Sam 8,949DismissedSettled by stipulation r

567 654'287 11,673

Settled by Tax C*urL decision 06 SaoTA t adby . but p 1 338 288

I

District courts and Court of Claims:Tout filed in district courts anti Court of Claim 1.177 1 A42Settled In district courts and Court of Cie I ms 647 B36Decided bydistriCtcmrtsand Courtof Claims

___!SO L ----!go

Settled by courts of appeals decision 355_'~ 463Favorable 1.Government 237 2"Favorable to taxpayers 95 128Modified 23 is

Decided by court of appeals but mi~ byWorteme Court 5

Supreme Court Settled by SuPmm& Ceurt decision 4 1 5

Fraud cesesi

IT-1pition in intelfilldivisions 2,482 2.S40

Disposed of be intelligence difrisivers;Pvtfuscution recommend 1:379 11795po,,.cut,ce, net

recommended 1 1421

486Disposed of by Office of Chief Ccureet h

Pnosecutim not warranted, including cases declinedby the Department of Justice

ProsectiI, i.-

Includes excise tax cases .

Production by alcohol and tba ... industries, fittest Yet, 197 2

Distilledst,'iri'sReCUlled distilled spirit.still wine

759 1

764.4 million tax gallons

120.7 million proof gallons

389a

i

efter~uscfxnt wines 22.9 million gallonsvermouth and other special 64 .5 fill- gallons

natural I.-Beer 140.3 Million gallons

Large cigarsSmall OffousCigarette.

165 .6 million596 .6 billion

1511,op q

~281.7 million gallons removed from bonded storage after determination of taxes due(in .l.de. 30 .3 million gallons of imported spirits transferred from Customs custody tobonded storage) ; 525 .3 million gallons tax freeF 1,107.6 million gallons in bonded storageat end of year.

Liquor Law EnforcementExtensive use of manpower tomeet expanded enforcement andregulatory responsibilities asso-ciated with intensified firearmsand explosive programs has hadan impact on Illicit liquor Investi-gations . In 1972, the Service usedonly 29 .4 percent of the investi-gator force for liquor law enforce-ment .

Illicit distillery seizures for 1972totaled 2,090, compared to 2,272in 1971 . Similar declines occurredin seizures of mash and non-taxpaid spirits . A more detailed sum-mary of accomplishments in liq-uor law enforcement is shown be-low .

Seizures of most of the nation'sillicit distilleries occur in theSoutheast Region and portions ofthe Central and Southwest Re-gions . The overwhelming majorityof these operations exist in therural areas of Alabama, Georgia,South Carolina, North Carolina,Mississippi, Tennessee, and Flor-ida.

"Operation Dry-Up," a programemploying heavy concentration ofFederal officers in three states ofthe Southeast Region, continuesto curb non-taxpaid whiskey traf-fic. This, along with stringent sen-tences in some court districts, hasreduced the number of personsderiving income from unregis-tered distilleries .

Revenue Growth-Alcohol and Tobacco TaxesDistilled spirits revenue rose to$3 .761 billion in fiscal year 1972,and tobacco taxpayments in-creased to $2 .207 billion In thesame period . The following tablepresents data on alcohol and to-bacco tax collections reflectingthe growth from 1863 to 1972 .

ATF revenue central manpower use

1971 107-1

Plants and permiteas subject to IRS regulatory control(excludes retail liquor defilers):Inspector man-years realized a3i

850On-site inspections completed 22,673 21,615Days of industry operation rec~uiring n.farmises,supervision 134,040 135,071

Permits issued, amended and terminated 24,471 21 A92Claim, offers-in-compromi- and assessment s

reviewed and processed 39,146 36,46 6

Results of criminal action in alcohol and tobacco case s

Action

Indictments and informationDisposals, tota l

Plan, guilty or nolo contehdereConvicted alter trialAcquittedNol-prossed or dismisse d

Seizures and arrests far alcohol and tobacco violations

It. .

Seizures ;DistilleriesStilts at distilleriesNon-taxpaid distilled spiritsMashVehiclesProperty (appraised value)

Arrests

Alcoholic BeverageAdvertising, Labeling ,Trade Practices

d bottlersDistillers, blenders anof spirits, producers and blendersof wine, and wholesalers and im-porters of all alcoholic beverages,operate under permits subject tosuspension or revocation for anyviolation of Federal liquor laws .in 1972, the Service revoked twopermits and suspended one per-mit while closing 83 cases involv-ing violations of the Federal Al-cohol Administration Act and theInternal Revenue Code throughacceptance of offers-in-compro-mise totaling $106,900 .

Revenue growth of alcohol and tobacco industries

(Amount-Thousand Dollam)

Distilled SpiritsWi aBeerTobacco Products

1863 197 2

3,3000 3,760,915.b8.8 101,223 .0

11558 .1 1,167,663.0

3,055.6 2,207,273.0

HUMber of defendants1971 1972

3,054 3,0293,169 3~lll2,166 2,11 5

612 478107 M284 2711

1971 1972 '

number 2,2722'090do 3327 21081

gallons 78,878 67'satzdo 1,387,986 .236,917

number 815 790dollars 1,071,138 :,490,686

number 3.222 3.19 1

Advertising Of alcoholic bever .ages must conform to statutoryand regulatory requirements andprohibitions. To insure compli .-ance, the Service examines ad-.vertising in a selected groupingof newspapers and magazines olgeneral circulation, and tradepublications . Service personnelexamined more than 18,000 pub-lications containing alcoholic

beverage advertisements duringthe year. In addition, comment Isoffered on proposed advertisingthemes or campaigns submittedfor examination .

Bottlers of distilled spirits, winesand malt beverages, and import-ers of such products, must obtaincertificates of label approval (orcertificates of exemption from la-bel approval for intrastate bot.tling) prior to removal of bottledgoods from establishments orCustoms custody. This year, theService approved 55,955 certifi-Cates of label approval and dis-approved 766 labels covering allclasses and types of alcoholicbeverages .

Alcohol, Tobacco andFirearms LaboratoriesSophisticated equipment and ad-ditional space enabled the Na-tional Office Laboratory and thethree field laboratories to broadenthe services offered in law en-forcement and revenue control .The number of criminal enforce-ment samples continued to in-crease. In 1972, the Service ana-lyzed 46,542 samples comparedto 33,374 in fiscal 1971 .

Chemical Staff ActivitiesThe laboratory received a largenumber of requests for non-alco-holic beverage flavors for specialnatural wines . Since artificial col-ors are not permitted In specialnatural wines, the laboratory isdeveloping less time-consumingartificial color tests using thinlayer chromatography .

In addition, the laboratory moni-tors various commercial wines forsodium content and pesticide res-idues and checks manufacturingProcesses of denatured alcoholusers for discharges of waste ma-terials . The staff authorized tol-uene as an alternate denaturantfor two denatured alcohol formu-las after reports that Benzene isa suspected carcinogenic agent

'The laboratory also devel0ped a

method of Differential Solvent Ex-tract to differentiate betweensmall cigars and cigarettes.

CERTIFICATES OF LABEL APPROVAL ISSUE D

no 1. - -

Forensic Staff WorkIn fiscal 1972, the Forensic Lab-oratory workload almost doubled .The staff examined approximately23,000 physical evidence samplesconnected with 3,230 cases in-volving illicit firearms and de-structive devices, illicit liquorconspiracies, income tax frauds,and other crimes. The photo lab-oratory processed about 80 re-quests per month for photographsof questioned documents. Thestaff also performed numerousspecial photo assignments foruse in court cases .

.1.

nz 1.

- - - 11. 111. 11.

The laboratory staff processedmore than 735 bomb cases andapproximately 344 documentcases. The Service used success .fully in court cases much of theevidence examined in connectionwith firearms and bomb offenses.Substantial increases occurred infirearms examinations involvingtool marks, ballistics, gunshotresidue, gunshot patterns andbullet identification . The numberof physical evidence samplessubmitted in connection with il-licit distillery operations re-mained nearly the same as lastfiscal year.

Formulas and Labels examimed

type 1971 1972

Formulas for nonbeverage food, flavors and medicinal products 2.010 2,100Formulas for specially denatured articles 3,897 4,151Label requests for alcoholic t0iietri~, medicines, etc . 8,286 6.873Rectified products 1,197 11089Wine 215 293

I Increase in wine formulas reflects apparent consumer acceptance of the cu, .rently Popular sweet-flavored wines.

22 23

Audit Contribution to

Strike Force ActivitiesThe Audit Division contributesleads and expertise in recon-structing complicated financialtransactions which help otherFederal agencies obtain indict-ments for violations outside ofthe Service's jurisdiction. It hasasserted substantial tax liabilitieswithin the Service's jurisdiction .The table at the right reflects theeffort expended and results ob-tained .

The War AgainstNarcotics Trafficker sIn June 1971, the President calledfor an increased effort to combatthe growing problem of drugabuse. The Service set up a spe-cial program to conduct tax in-vestigations on key figures en-gaged in narcotics traffic. Theobjectives are to prosecute thosewho have committed' criminaltax violations and to reducedrasticaly the profits from the il-licit drug traffic by assessingtaxes and penalties on unre-ported profits . The Service hasassigned 189 revenue agents, 268special agents, and 110 clericalsupport personnel to the project .A Target Selection Committeecomposed of Treasury's Directorof Law Enforcement, with mem-bers from the Bureau of Customs,the Bureau of Narcotics and Dan-gerous Drugs, and the Audit andIntelligence Divisions of the In-ternal Revenue Service estab-lishes criteria and Identifies sub-jects for investigation. The com-mittee identified 697 targets in 49districts for joint investigationand 94 for independent audit.Agents completed 155 cases andrecommended prosecutions of 56persons . Of those, 7 have beenindicted and convicted . Addi-tional tax and penalties of 43million have been assessed orrecommended for assessment.In addition, the Service issuedspontaneous assessments (ter-minations of taxable years andjeopardy assessments) amount-ing to $49 .9 million . Agentsseized $7.2 million in cash and

26

Audit Strike Force Accomplishments

PeriodRanumsho

AgentsAssigned

1967-1970 1761971 3511972 549

$1 .3 million in other propertyafter the spontaneous assess-ments . The largest seizure oc-curred in New York on April 29,1972, when investigators discov-ered $1,078,100, a part of whichwas concealed in a basementwall and the remainder foundburied in the backyard of a con-victed heroin distributor .

R-infinamde'dClosed Additiona l

Exami nations Tax &penalties

PendingExarni-nations

itnifficm.)

1 .302 $ 22.2 2.3682,731 $105.6 3,7085,894 $254.8 2.866

The neat stacks of money on the defutamount 10 $1,078,100.00. The money hadbeen concealed at the home and In theg:m6n of a convicted heroin distributor.S

rvice agents discovered and W~.d themoney to, application as a partial paymentag inst his Federal tax Ilebtlify . Picturedb

'&low (I. to r .) am Martin Pollnet, Diracto,of Law Enforcement, Treasury Department ;Daniel Casey, Narcotics and DangerousDrugs Director; and Elliott Gray, Director diInternal Revenue, Manhattan District .

The money so neatly stacked on the desk inthe picture above /a shown h... in It. hid.ing place as discovered by Service agents .

Organized Crime andStrike Force sThere is no glamour in the un-derworld . Contrary to the imageportrayed on movie and televi-sion screens and in publicationsof fiction, organized crime is avicious, dirty business . It is asreal as this year's tax bill, and itis characterized by violence . Inthe past year, for example, gang-land violence erupted to take thelives of seven men in a ten dayperiod.

The Government combats organ-ized crime through the StrikeForce concept which melds theinvestigative resources of vari-ous Federal agencies . Althoughall Federal law enforcementagencies participate, the InternalRevenue Service supplies morethan half of the agent manpowerto the 18 Strike Forces strategi-cally located throughout thecountry. Agents from the Audit,Intelligence, and Alcohol, To-bacco, and Firearms Divisionsparticipated in the program . Thisyear, Service activity in the StrikeForce .Program established newrecords in criminal and civil en-forcement .

The protection of witnesses inthe Service's probe of the under-world is a difficult task. In coop-eration with other law enforce-ment agencies, the Service pro-vides a round-the-clock protec-tion when needed, and, wherenecessary, assists in the reloca-tion of witnesses and their fam-ilies .

The success of any program ismeasured by its results . Duringfiscal year 1972, invesitgative ef-forts by the Service helped toproduce 355 indictments . Otheraccomplishments follow,

A grand jury returned an indict-ment against a District Attorneyon charges of filing false incometax returns and bribery, illegalgambling, and obstruction of lo-cal law enforcement. The samecharges were filed against nineothers, including two high rank-ing police officers and major op-erators of illegal gaming devices .

Strike Force investigations re-sulted in indictments against theworld's largest manufacturer ofslot machines and pinball ma-chines, the company's president,and several others, including twobrothers of the area's crime boss.

Investigative efforts produced anindictment of a United StatesCongressman . The Congressmanis charged with Income tax eva-sion, perjury before the grandjury, and consipracy to impedethe administration of the InternalRevenue laws. The conspiracycharge alleges that the Con-gressman assisted the formerMayor of Jersey City and the for-mer Jersey City Council Presi-dent in concealing a largeamount of cash to hide their trueincome tax liabilities .

Hugh Addonizio, a former Mayorof Newark, Anthony La Morte,former Public Works Director,and Joseph Biancone, syndicateenforcer, lost final a ;5peals to theU .S . Supreme Court and beganserving ten year sentences . TheU . S . Attorney remarked : "The in-carceration of former MayorHugh J . Addonizio gives confi-dence to all glecent law abidingcitizens that those who abuseand corrupt their high politicaloffice for their self-enrichmentcan be brought to account withinour judicial system ."

Anthony Russo pleaded guilty tocharges of failure to file corpo-rate tax returns for two firms inwhich he was the principal offi-cer. He received 18 months im-prisonment and a $50,000 fine .

Investigation of a conspi. racy inKansas City resulted in the in-dictment and arrest of an organ-ized crime figure involved in nar-cotics traffic, prostitution, in-come tax evasion and hiddenownership in taverns.

Donald Dawson, described asone of tHe biggest interstatebookmakers In the Midwest, re-ceived a prison term of one year .The Service is assisting oth&agencies in bringing law violatorsto justice . This is especially visi-ble within the operations of vari-ous Strike Forces . In Detroit, theService furnished information tothe Federal Bureau of investiga-tion on loan sharking operations,and coordinated with other ele-ments in identifying night clubsowned by organized crime sub-jects but titled in the names ofnominees .

The Service continues to receiveoutstanding cooperation from theRoyal Canadian Mounted Police .They were especially helpful Inthe recent location, identificaiton,and apprehension of a fugitivewho had entered Canada underan assumed name. The fugitivehas been returned to the UnitedStates to face trial on a $700,000tax evasion charge .

Strike Force investigators alsocombat corruption In govern-mental agencies . This year theyuncovered a conspiracy to de-prive the poor people of Calumet,Indiana of benefits from the foodvoucher program . Investigativeefforts resulted in the convictionof Davage Minor, a former inves-tigator in the office of the Calu.met Township Trustee. He hadfunnelled food vouchers intendedfor the poor through local gro-cery stores, and split proceedsbetween public officials and thestore owners . Two other employ-ees of the Trustee's office en-tered guilty pleas to charges oftax evasion and received prisonterms .

27

In a recent investigation, usingthe team approach, agents inves-tigated a notorious organizationpurportedly engaging in multi-kilo narcotics trafficking, gam-b(ing, and prostitution . They wereassisted by twelve agents fromthe offices of the City District At-torney, City Sheriff, City PoliceDepartment, State Bureau of Nar-cotics, U . S . Bureau of Narcoticsand Dangerous Drugs, and theBureau of Customs . The com-bined efforts produced probablecause foraearch warrants, 20 ar-rests, and numerous leads to taxevasion cases .

New procedures and techniquesreduce the time required forcompleting financial investiga-tions . The use of computers willfacilitate scrutiny of the financesof each of the drug traffickers .By computerizing this informa-tion each year, the Service willbe able quickly to examine eachtrafficker targeted under the pro-gram.

Foreign Financial TransactionsNewly issued Treasury Regula-tions under Public Law 91-508require financial institutions toretain records that will facilitatereconstruction of internationaland ' domestic banking transac-tions. The same regulations alsorequire reporting internationaltransportation of currency ormonetary instruments in amountsexceeding $5,000.The Service participated in draw-ing up treaties which would per-mit agents to obtain tax informa-tion from countries whose bankor economic secrecy laws havebeen used in evasion schemes .The proposed mutual assistancetreaty with Switzerland is one in-stance in which the Service madesignificant contributions . TheService also developed informa-tion on the need for treaties withother countries whose financialfacilities are used to impede en-forcement efforts.

The Service concluded a signifi-cant criminal tax case involvinguse of foreign facilities whenIrving Braverman and SidneyRosenstein received sentencesin the Southern District of NewYork, and paid fines of $100,000each . Braverman and Rosensteinare manufacturers' representa-tives who specialized in sales tomilitary post exchanges. The gov-emment contended that Braver-man and Rosenstein secretlyformed a Liechtenstein companyand diverted untaxed commis-sions to that company's accountin a Swiss bank

.Criminal

charges included the evasion ofincome taxes totalling more than$1,600,000 .

New Developments in theFirearms Progra mThe conversion of the NationalFirearms Registration and Trans-fer Record to an automated sys-tem of filing and retrieval is nearcompletion . The Service hasplaced approximately 200,000records of registrations an d

Results of criminal action in firearm, cases

Action

Indictments and inlormation

Dispostals, tota l

Plea guilty or nolo:contendemConvicted after trialAcquittedNol-prossed ordismissed

transfers of firearms and do-structive devices in the MiracodeRetrieval System . The systemprovides instant response to fieldinquiries and eliminates misfiling,while saving space, time, andmanpower.

Firearms experts developed bul-let trap and sound measurementinstrumentation to test silencers.The equipment has been usedsuccessfully at several courttrials .

Firearms Program IntensifiedIn 1972, the Service expended1,146 Investigator man-years onfirearms work, up 299 man-yearsfrom 1971 . Firearms investiga-tions produced 3,341 criminalcases, arrests of 2,507 violatorsand the seizure of 7,142 firearms.These figures compared with21785 criminal cases, 2,223 vio-lators arrested and 7,995 fire-arms seized in 1971 .

Service investigations of the ac-tivities of 62,423 licensed gundealers increased in 1972 . Theseinvestigations disclosed 3,143purchasers of firearms who hadcriminal records, used fictitiousnames, or furnished other falseinformation in purchasing fire-arms . Additional accomplish-ments under the Firearms pro-gram are set forth in the tablebelow .

Number of defendants

1971 1972

1,9D6 2,645

1,691 2,420

784 1,110372 448114 ISO421 61115

Firearms Licenses and PermitsIn 1972, Service investigatorsmade 31,259 license applicationinvestigations and 31,164 compli-ance investigations, compared to20,088 applications investigationsand 23,684 compliance investiga-tions in 1971 . Under the importprovisions of the Gun ControlAct, the Service received 22,320permits to import 1,199,614 gunscompared to 26,658 permits cov-ering 964,122 firearms processedin 1971 .

Federal Gun Controlat WorkThe effectiveness of the Federalfirearms laws in bringing crimi-nals to justice is best illustratedby actual cases . A few examplesfollow :

In Connecticut, two employees ofa firearms manufacturer stole au-tomatic rifles from the plant bybreaking down, concealing andremoving the parts and reassem-bling the rifles . The defendantssold the stolen rifles to eight per-sons. One of the rifles is believedto have been used in a bank rob-bery in New Britain, Connecticut .The defendants have beencharged with unlawful receipt,possession and transfer of un-registered firearms and with en-gaging as a firearms dealer with-out a license . Their associateshave been indicted on six countsin companion cases by reason ofthe sale of six of the stolen fire-arms to undercover investigatorsin New York .

A gun store in New Hampshirewas robbed of 44 weapons, in-cluding shotguns, rifles andhandguns . The stolen firearmswere subsequently transported toMassachusetts where they weresold to a "fence ." Service inves-tigators gathered sufficient infor-mation to obtain arrest warrantsfor 21 defendants .

After an intense Service investi-gation, three defendants wereconvicted in Miami, Florida, formanufacture and possession offirearm assassination kits . Theyreceived prison terms of 20years .

An undercover investigation bythe Service resulted in the pur-chase of an illegal machine gunfrom a member of a radicalgroup. A subsequent seizure in-volved explosives, hundreds ofrounds of ammunition, and eightadditional machine guns.

Service investigators arrested adefendant and raided an illegalmachine gun factory . Machineguns, silencers, and miscellane-ous parts were seized .

Seizures and arrests for firearms violation s

Item

Seizures :Firea rnsDes!ructive devicesVehiclesProperty (appraised value)

Arrests

Service investigators seized 7,841firearms and destructive devicesin 1972. Weapons such as thosepictured below, seized in NewYork State, pose a potentialthreat to the well-being of all citi-zens. The weapons seized includ-ed sawed-off rifles and shotguns,automatic weapons, and destruc-tive devices .

On March 13, 1972, Service In-vestigators in Honolulu, Hawaii,arrested four men after the un-dercover purchase of two sawed-oft shotguns and one sawed-offrifle . It was later they learnedthat one of the subjects, armedwith a handgun at the time ofarrest, had intentions of killingthe Service and Customs agentsassisting in the case. The mur-der of the agents, was to takeplace immediately after the shot-gun sale . It was prevented by thequick action of backup agentson the scene .

1271 1972

number 61910 7,142do 1.085 699do 344 237

dollars S".613 669 .703number 2,223 2,507

W-p .r . ol-d by AT8F 1-stigO. . 1~No. York -m

I

28 29

Bombs and ExplosivesThe assignment of jurisdictionalresponsibility for Title XI of theOrganized Crime Control Act of1970 has led to the developmentof new procedures and tech-niques for perfecting cases in-volving destructive devices, ex-plosives, incendiaries, and othermaterials.

Some significant cases investi-gated by the Service involvinguse of explosives follow :

In January 1972, Service investi-gators assisted by the Woburn,Massauchusetts Police Depart-ment arrested 15 persons oncharges of conspiracy to makeincendiary bombs, making andpossessing incendiary bombs,and destruction of a motor ve-hicle . The arrests climaxed a 15-month investigation of firebomb-ings of a school in North Woburn,Massachusetts .

Investigation of a bomb incidentin Chattanooga, Tennessee, ledto the arrest and conviction of along-time whiskey violator. An-alysis of parts of the bomb dis-closed the latent prints of theindividual arrested .

s...ic. . ..N. p-H-1 tral.-ft M b..b a .... ... .hax .

30

In February 1972, Service investi-gators working undercover foileda plot to blow up railroad junc-tions and electric transmissionlines in the Lehigh Valley ofPennsylvania . They seized elevenbombs, numerous firearms, and aquantity of dynamite .

The babblings of an attemptedsuicide victim recovering from anoverdose of barbituates causedAlcohol, Tobacco and Firearmsinvestigators to spend a day anda half in a boobytrapped farmhouse . Two investigators actingon the victim's information pro-ceeded to his house locatedsome 45 miles from town . Theywere stopped at an improvisedroadblock by two deputized farm-ers armed with shotguns whostated that they had heard thatthe suspect was crazy and wasin the vicinity. After identifyingthemselves, the investigators pro-ceeded . Several miles later theywere again stopped by the samedeputies and asked to identifythemselves again . They said thatthe suspect was very clever andmight have disguised himself asa government man .

Once again allowed to proceed,the investigators arrived at thefarm house to find it equippedwith a high fence, a watch towerand a two-wheel cannon madefrom well casing and fired remote-ly by an electrical device. Theyfound the fence gate equippedwith a buzzer and microphone .

As one investigator moved to usethe buzzer, the other grabbed hisarm and pointed to a wire lead-ing to a mound of dirt at theirfeet . Both investigators immedi-ately look cover in a ditch onlyto discover another wire andmound of dirt beneath them .Neither bomb detonated .

Noting suspicious diggings nearthe house and suspecting theyard might be mined, the investi-gators borrowed horses from anearby pasture and stampededthem through the yard . No minesor bombs detonated .

Upon approaching the house, theinvestigators saw four sticks ofcapped dynamite taped beneaththe porch and a wire leading intothe house . Closer examinationshowed all windows and doorsrigged with electrical switches .Since the regular entries to thehouse could not be used, the in-vestigators entered by means ofa hole sawed in the living roomwall .

In a bedroom of the unoccupiedhouse the investigators found abomb made of 238 sticks of dy-namite wired to the house circuit .Various other rooms in the housecontained 19 bombs .

They then began the long proc-ess of decapping the dynamiteand defusing the bombs. By trAc-Ing the lead wires, the investiga-tors discovered that the bombswere connected to a telephonetype control panel with key andtoggle switches designed to re-motely fire the charges collec-tively or one at a time . They ren-dered all the devices safe andremoved them .

The suspect and owner of thehouse was an unemployed elec-trician . He was deeply in debtand planned to blow himself upalong with any officers who mighttry to arrest him . He received asentence of 10 years in prison forillegal possession of 23 destruc-tive devices .

Training in BombScene Searche

sAlcohol, Tobacco and Firearmsinvestigators received intensivetraining in bomb scene searchesnecessary to carry out their re-sponsibility of enforcing Title XIof the Organized Crime ControlAct of 1970 (Regulation of Ex-plosives) . The intent of the act isto curb the criminal misuse ofexplosive materials and regulatethe legitimate explosives industry .

Assistance to State andLocal Law OfficialsThe Alcohol, Tobacco and Fire-arms Division provided extensiveinvestigator training to State andlocal law enforcement agenciesin a program sponsored by theLaw Enforcement Assistance Ad-ministration of the Department ofJustice .

Results Of criminal action in explosives cases

Action

Number of casesNumberof defendantsExplosives seiMd ObS.)

The instruction spans investiga-tory skills and techniques, law(rules of evidence and criminalprocedure), and such functionaltraining as bomb scene searches,use and handling of expolsives,and firearms investigations .

During fiscal year 1972, the Serv-ice conducted six, two-week andtwo, one-week investigator train-ing schools for State and localofficers in Maine, Vermont, Geor-gia, Virginia, Texas, New York,Iowa and Nebraska .

A series of 15 lesson plans, in-corporating texts and various vis-ual aids in the explosives areaassisted State and local law en-forcement .

Congressman Dante Fascell com-mended this training in a speechto the House of Representatives(Congressioital Record, March 8,1971) :

1971 1972

69 26666 408

1,702 4,325

"Mr . Speaker, one of the unsungbut most effective proponents ofimproved cooperation and coor-dination among Federal, Stateand local law enforcement agen-cies is the Alcohol, Tobacco andFirearms Division of the InternalRevenue Service . Charged withweighty and growing responsibil-ities, under recent congressionalenactments pertaining to explo-sives and firearms, among itsmany other respons

'ibilities, the

Alcohol, Tobacco and FirearmsDivision has fashioned an over-all enforcement program, includ-ing comprehensive formal train-ing and cooperation with Stateand local agencies, which is orshould be a model for emulationby other Federal enforcementagencies."

31

I

I

New ResponsibilityThe Service played a key role dur-Ing the past year in the nationwideprogram to combat inflation . OnAugust 15, 1971 President Nixonannounced a 90-day freeze onmost prices, wages, and rents .The President's Executive Ordercreated the Cost of Living Coun-cil as a major policy makingbody. Simultaneously, the Officeof Emergency Preparedness(OEP) took over responsibility toimplement, administer, and en-force the Economic StabilizationProgram.

On August 19, OEP redelegatedresponsibility to the Internal Rev-enue Service to establish localservice and compliance centers .Staffs at the centers provided In-formation to the, public, Investi-gated complaints, and monitoredcompliance with the stabilizationprogram .

Because of the minimum of ad-vance notice of its new responsi-bility, the Service had little timeto develop planning programs tohandle the volume of inquiriesand investigations that quicklyfollowed .

Since no precedent body ofknowledge, experience, or pro-cedures existed, an Innovativeprogram followed. The first weekof operation brought 120,000 in-quiries and more than 4,000complaints of violation . Duringthe 90-day freeze, which came tobe known as Phase 1, the Servicedeveloped a responsive and flex-Itile program to meet its respon-sibilities under the EconomicStabilization Program.

Background of Phase 11On October 15th, the Presidentissued an Executive Order provid-ing the legal foundation for thepostfreeze program, or Phase 11 .

The Order continued the Cost ofLiving Council as the major pol-icy body, and created the PayBoard and Price Commission .The Pay Board develops stand-ards and criteria for pay adjust-ments consistent with programobjectives, and the Price Com-mission develops standards andcriteria for price and rent ad-justments.

The role of the Service was toreceive inquiries and complaints,carry out investigations and per-form other related duties, as theOEP moved out of the Stabiliza-tion Program .

Verbal and Written inquiries Phase I

IRS Organization andManpower for StabilizationActivitiesOn November 14, 1971, Phase 11emerged as an ongoing operationand the President assigned theService the responsibility for an-forcement of the program . TheService established an Office ofAssistant Commissioner (Stabili-zation) at the National Office andcounterpart offices at regionaland district offices. With this or-ganization, the Service providesenforcement services at each ofthe 58 district offices and at 302local service and compliancecenters.

Manpower for the program con-sists of full time stabilization em-ployees and other employeestransferred from tax administra-tion tasks . They include such asrevenue agents, tax auditors, rev-enue officers, taxpayer servicerepresentatives, special agents,and appellate conferees .

From November 15, 1971 to June30, 1972, the Service answered2,320,358 oral inquiries and 102,-324 written inquiries. The Na-tional Office responded to 14,083special executive, policy board,congressional, and public In-quiries.

The program involves complexstabilization Issues, increasingthe need for technically proficientprofessionals. Revenue agentsperformed much of this work .

Verbal and Written inquiries Phase It

The Cost of Living Council for-mulates broad policy decisions,while the Pay Board and PriceCommission establish specificcriteria and policy objectives .Additional delegations of authori-ty from the policy bodies permitthe Service to make a variety ofwage and price determinations,to issue rulings, and to resolveprice violations.

Compliance ProgramThe objective of the compli-ance program is to monitor Infla-tionary leaders or companieswith a high degree of visibilityin the community, as well as torespond to consumer complaints .There are four principal types ofinvestigations :

(1) major investigations of In-dustry leaders, initiated bythe Cost of Living Council,Price Commission, PayBoard, or the Internal Rev-enue Service ;

(2) follow-up investigations offirms who fall to file re-quired reports with the PayBoard or Price Commis-sion, or whose reportsshowed excessive profitmargins ;

(3) investigations of consumercomplaints ;

(4) locally Initiated investiga-. tions of inflationary leaders.

The Service develops monitor-ing techniques and guidelinesafter making preliminary surveysof industries . For example, theService performed a full-scalemonitoring Investigation of theretail food industry. Service per-sonnel drafted a model audit planfor food retailers for use in other

I

34 35

I

major food compliance investiga-tions. Other full-scale monitoringinvestigations span the textileindustry, the ferrous metals in-dustry, the lumber and paper in-dustry, wholesale meat packerindustry, meat retailer industry,and the machinery and equip-ment manufacturing industry, aswell as investigations of Institu-tional health providers and pro-fessional service firms . From Jan-uary 1, 1972 to June 30, 1972, theService investigated 426 largefirms, and ensured compliancewith rollbacks or refunds orders .

Complaints of Alleled ViolationsPhaseI

R-list .

nass

36

Complaints of Alleged Violations Phase I

Re,,eipts

-1

:,nvestigations of Large Firmsitiated 4 the Policy Bodies

Exceptions and

ExemptionsWhen regulations create extremehardship or gross inequity, ex-ceptions and exemptions providerelief . An exception is a waiverof one aspect of the regulationsfor a specific firm or individual.An exemption is a general waiverfrom the regulations for certainclasses or property.

In March, 1972, the Pay Boarddelegated authority to the Serv-ice to approve or deny excep-tions for wage and salary adjust-ments. This affected employeeunits of fewer than 1,000 persons,and shortened the time for a citi-zen to receive an answer to hisrequest for a pay exception . TheService received over 10,000 re-quests for pay exceptions withthe delegated authority.

Applimions for Exception/Exemption

Number orR.aiph

496-192 0 - 73 - 4I

Price Adjustment ExemptionsIn May, 1972, the Price Commis-sion delegated authority for ex-ceptions in all rent and pricecases involving firms with annualsales or revenues of $50 millionor less . During the post-freezePhase, the Service processedover 4,0DO requests for excep-tions to the price regulations .

Frequently, persons requestingan exception are unaware thattheir proposed action is withinthe boundaries of the wage-priceguidelines, and allowable with-out requiring an exception . Forthis reason, Service representa-tives work with the applicant inInitially determining whether It isnecessary to file a formal excep-tion application .

ExemptionsIn April 1972, the Cost of LivingCouncil delegated authority tothe Service to deny exemptionrequests that are the same as, orsubstantially the same as exemp-tions that the Council previouslyconsidered . To date, the numberof exemption requests has beensmall, limiting the scope of Serv-ice action in this area.

37

I

I

Appeals ProgramRegulations provide for appeal atthe local level . Persons may ap,peal decisions on Interpretationsand requests for exceptions orexemptions. The Service issuesformal notice in instances of de-nial and the appellant may ap,peal further to the Cost of LivingCouncil, the Pay Board, or thePrice Commission .

As of June 30, 1972, the Servicereceived 2,557 appeals and re-solved the majority at the districtlevel .

Notices of violations are not sub-ject to appeal, but the allegedviolator may request a hearing.Following the hearing, the Serv-ice withdraws the notice of viola-tion or refers it to an AssistantUnited States Attorney for pos-sible prosecution .

Stabilization ProgramsThe programs described abovebreak down into two major cate-gories : those that assist and an-swer questions from the public ;those that ensure compliancewith stabilization regulations. Theaccompanying chart displays themajor Phase 11 programs andcompares the manpower ex-pended on each of the programsduring the past year.

PERCENTAGE OF14ANPOWER EXPENDEDON MAJO RSTABILIZATION PROGRAMS

Appeals Prognian

Stabilization SupportActivitiesReview of ProposedRegulationsThe Service reviews all regula-tions proposed by the Cost ofLiving Council, the Pay Board,and the Price Commission tohelp Insure that the public under-stands them. This review helpsthe policy bodies recognize whenenforcement of a proposed regu-lation would require an undue ex-penditure of manpower, whenproposed regulations are vagueor inconsistent, or when enforce-ment of a particular provisionwould result in severe inequities .

Publications ExplainingStabilizationThe emphasis on voluntary com-pliance called for a program toconvert complex economic reg-ulations into plain-language . TheService approached this in twoways : first, developing compre-hensive publications to explainregulations on a particular sub-ject ; second, developing a seriesof publications for selected seg-ments of the economy . The Serv-ice sends reproducible copies ofpublications to associations or

organizations for distribution totheir members and for reproduc-tion in their periodicals . For ex-ample, "Posting Re,

.a ents

for Retailers" went to 180 retai lu' m Iassociations for distribution toa~l member retailers . In this way,d stribution is widespread andreaches hundreds of thousandsof interested persons. In manycases, retailers, employers, andlandlords obtain additional cop-ies for distribution to their cus-tomers, employees, or tenants,clarifying the provisions of theprice, wage, and rent controls .Thus far, the Service has dis-tributed 12 million copies of pub-lications.

IFoall-Review, Necessary forUniformityThe National Office has primaryresponsibility for insuring tech-nicaL accuracy, uniformity andconsistency of all stabiliiationactions. It accomplishes this byanalyzing closed stabilizationcases relating to interpretations ;identifying significant technicalor procedural errors ; and takingcorrective measures . The objec-tive is to maintain quality anduniformity to encourage citizensupport and voluntary compli-ance .

StabilizationAccomplishmentsThe Service works hand-in-handwith the Justice Department indeveloping litigation cases . Sta-bilization investigators are in fre-quent contact with Assistant U .S .Attorneys to assist in documenta-tion of cases . Notices of Viola-tion go to large firms only aftercase reviews by the Departmentof Justice .

From November 15, 1971, to June30, 1972, the Service received105,502 consumer complaints .Subsequent investigations re-sulted in the issuance of 1615Notices of Violation .

In one case, a Federal GrandJury indicted the landlord of alow-rent apartment complex forstabilization violations . The land-lord allegedly raised rents ex-cessively and then forced ten-ants, under threat of eviction, tosign statements saying the in-crease was for maid and answer-ing services. The charge carriesa maximum penalty of five yearsin prison and a $10,000 fine .

Another price case involved acorporate chain of resort hotelswhich raised room rates withoutnotifying the Price Commission .The Justice Department hasasked the court to impose civilpenalties of $109,500 and to or-der refunds of approximately$50,000.

From November 15, 1971 to June30, 1972, the program involved11,045 rollbacks of excessive in-creases in prices, wages, orrents. A bank in Detroit rolledback excessive rentals on safetydeposit boxes and refunded$6,000 to 1,963 customers. Amajor Professional football teamrolled back set prices, affectingthe ticket prices paid by the ex-Pected season's attendance of706,000 tans.

The Service handled more than3 .7 million stabilization inquiries,mostly centering on rent issues .Most compliance programs dealtwith price actions, except for theappeals program which primarilyinvolved wage cases . The Serv-ice is adjusting to the need foradditional technical personnelby apportioning more manpowerto compliance programs and byincreasing the number of revenueagents used in the program .

FISCAL YEAR 1972(ACTUAL)

Rollbacks of Excess0ye Inciresses, in Prices,,Wages and Rent s

STABILIZATIONMANPOWERALLOCATIONFISCAL YEARS1972 AND 1973

45%

FISCAL YEAR 1973(PLANNED)

Cannot-Prolisases

Ell

38 39

II-Oreign Flosts'Mission Restructure dThe Service operates permanentposts staffed by Revenue ServiceRepresentatives in ten majorcities around the world . Theseposts in Bonn, London, Manila,Mexico City, Ottawa, Paris, Rome,Saigon, Sao Paulo and Tokyoprovide important contact pointswith U .S . citizens and businessentities overseas.Revenue Service Representativesdevote time to a variety of activi-ties, including servicing requestsfor information from foreign taxofficials, acting as liason betweenU .S. and foreign tax authorities inresolving cases of double taxa-tion or other inequities arisingunder tax treaties, and providinginformation and guidance to U .S .citizens with tax problems .

Overseas Audits-A New Developmen tUntil 1972, the Service handledmost audits of returns filed bytaxpayers overseas through cor-respondence . In some casesService personnel at foreignposts carried out intermittentaudits, assisted by agents fromWashington on short assign-ments .

Recent surveys pointed to aneed to expand overseas auditactivity to counter a growingnoncompliance problem .

Under a new program, the Serv-ice details teams of revenueagents and tax auditors to theService's overseas posts. Theagents work throughout the areacovered by each post, while au-ditors examine returns and dorelated work at the post itself .Each agent-auditor team usuallyis stationed abroad from four tosix months . After this tour ofduty, a replacement team takesover, assuring year-round con-tinuity.

42

Teams perform compliancechecks, make collateral examine-tions, provide taxpayer assist-ance, hold conferences, and han-dle delinquent returns and col-lections cases . They work withpermanent Service personnel sta-tioned at foreign posts who arefamiliar with the area and itsproblems .

Worldwide TaxpayerAssistance Program sFor the past 19 years the Servicehas provided a worldwide tax as-sistance program . In 1972, theoverseas taxpayer assistance

program encompassed visits to102 cities in 56 countries by spe-cially trained Service personnelwho helped more than 31,000persons prepare their tax returns .

The program offered tax sami-nars in 78 foreign cities. TheService tailors seminars to in-form and assist all U. S . taxpay-ers residing in the foreign area,and arranges them to allow fora presentation by the tax assistoron tax rules, a question and an-swer session, and a return prep-aration period .

Approximately 1,000 servicemenreceived several days of incometax instruction at bases abroad .After completing training, theyprovided assistance to manyother members of the militarycommunltv.

Barbara Stratton (fight), a member of the ever-sees taxpayer assistance team helps a U .S .citizen In Rome. Assistance is given at vefiouslocations in more than 100 foreign cities .

Developing CooperativeContacts AbroadIn 1972, U .S . and foreign tax au-thorities met to discuss ways ofimproving exchanges of informa-tion, and expediting relief to tax-payers involved in double taxa-tion .

From these exchanges,

more ef-fective procedures for interna-tional cooperation will evolve,aiding equity to taxpayers anddeterring tax avoidance prac-tices . ,

A continuing program of mutualassistance is conducted with taxauthorities of the possessions ofthe United States and with theCommonwealth of Puerto Rico .It includes exchanges of infor-mation, joint audits, and assist-ance in collection of tax. A taxadministration accord recentlyconcluded with Puerto Rico for-malized and expanded an exist-ing policy of cooperation . A pre-vious agreement reached withtax authorities of Guam resolvedpotental conflicts in tax deter-minations, particularly those in-volving allocation of income be-tween sources in Guam and theUnited States .

Extension of FederalUnemployment Tax toAmericans Oversea sPrior to 1972, the Federal Unem-ployment Tax Act did not applyto citizens of the United Statesand Puerto Rico who worked inforeign countries . Recentchanges in the law apply the taxto U .S . citizens and citizens ofPuerto Rico who work outsidethe United States or Puerto Rico,if they qualify as employees ofAmerican employers . The taxdoes not apply to money earnedin Canada, since these earningsare covered by a reciprocal un-employment compensation agree-ment, nor to services performedin the Virgin Islands. Thus, with

the latter exce Ptions, Federal un-employment tax and related un-employment benefits (or theircounterparts under the agree-ment with Canada) now extend tothe large group of citizens work-ing for American employers over-seas.

Withholding Tax-A KeyCollection ToolA withholding tax is imposed oninvestment income from sourceswithin the United States before itis remitted to nonresident alienpayees . Tax is withheld at a rateof 30 percent or, in most casesat reduced rates as specifiedtreaties .

Tax and information returns filedby withholding agents serve sev-eral purposes . They help securecompliance with U.S . tax lawsand provide information for de-linquency checks ; they provide asource of data for foreign taxauthorities ; and they are usefulin making fiscal projections andplanning Service programs .

The chart below summarizes in-come received by nonresidentaliens and foreign corporations,and U .S. tax withheld . This in-cludes additional tax withheldand remitted by foreign banksand other nominees on behalf ofclients who are not residents of atreaty country, and thus not en-titled to reduced treaty rates .

Tax withheld from payments to nonresident alien persons of treaty and nontreatycou ..tri-calendar year 1970

Thousands dollars

Country Income

Treaty countries :A .1ralin 3,457Austria 1,934Belgium 27,196Former Belgian pi s

Territories 586

Canada 238, 216Denmark 2,564Finland 607France 70 .147Federal Republic ofGermany 48,479

Greece 1,451Ireland 4259tely 15 :387Japan 31,864Luxembourg 16.749

Netherlands 189,604Netherlands Antilles 91,250New Zealand 593Norway 2, 168Pakistan 188

Sweden 10,055Switzerland 310,522Trinidad and Tobago 73Republic of South

Africa 1.462United Kingdom 297,241U .K . overseas territ . 4,692

Nontrenty countries 88.241

Total 1 .458.985

Toxfmm Number ofTo. with. foreign informa.held by go--. time cloc ..

domestic set. mentswithheld. or with. filed b y

ing holding Toteltax withhold .agents agents withheld ing agents

548 548 5,157230 230 5.02 7

3,544 438 3,982 12,565

9

2 92 75927 .469 3,283 30,752 254 :643179 179 2 08345 45 340

7 .364 118 7,482 20,607

4.297 4,297 95,550302 302 2.910468 468 4,030

1,718 1,718 148253,231 3.231 3 :6833.010 628 3,638 2. 766

13,504 273 13,777 , 5314.499 5 4,504 l :85 4

82 82 1,086266 266 4,90522 22 164693 693 5,011

39 .733 25,001 64 .734 46,28916 16 244

384 384 1,49034.877 474 35,351 49,310944 944 3,935

22 .376 22,376 108 .129169,893 30.220 200,113 655 .1393

43

The following graph shows asharp rise in the amount of taxeswithheld over the period 1961through 1970, reflecting the size-able growth of foreign investmentin the U .S . economy .

Increase in Tax Withheldfrom Payments toNor-Resident Alien PersonsCa= and N-treat; co.otries-Of

Years 1961.1 70

nxx n.

Negotiating New TaxConventions-AContinuing Progra mThe United States and Norwaysigned a new income tax conven-tion at Oslo on December 3,1971 .

The existing convention will re-main in effect until instrumentsof ratification of the new conven-tion are exchanged . The UnitedStates also concluded an agree-ment with the Republic of Chinafor the purpose of granting relieffrom double taxation on earningsderived from the operation ofship~s and aircraft by corpora-tions or citizens of the two coun-tries . The agreement became ef-fective upon exchange of notesat Taipei on February 26, 1972 .

These developments reflect acontinuing program to extend theU.S . tax treaty network to addi-tional countries and to modern-ize existing treaties . The 6ewNorwegian convention, for ex-ample, takes into accountchanges in U .S . and Norwegiantax laws and in the tax treatyarea which have occurred sinceadoption of the prior convention .To the extent that technical and

policy factors permit, the newconvention follows the model taxconvention prepared by the 23-nation Organization for EconomicCooperation and Development.

Technical Assistance InTax AdministrationThe Tax Administraiton AdvisoryStaff (TAAS), formerly known asthe Foreign Tax Assistance Staff,assists foreign governmentswishing to improve their tax ad-ministration, and coordinates ex-change of personnel between theInternal Revenue Service andstate and local governments anduniversities. The latter is a newlyacquired responsibility .

This new activity is conductedunder the Irltergovern mental Per-sonnel Act of 1970, and involvestemporary exchanges or assign-ments of officials for projects re-lated to tax administration . Majorobjectives are to strengthen stateand local tax agencies and to im-prove the effectiveness of Fed-eral-state/ local tax operations.

Under the Intergovemmerial Personnel Act of1970, the S-I.. s.1gns offi,lat. and achnl-clans to work with state and local tax agen.

.1. to strengthen tax d .inntrali- and In-crease the eflecthnness of Federal-stale/localto, operations. NO- b- (I. to ') .1.

TAAS provides technical assist-ance in tax administration to &~-veloping countries that request it .The latter program involves on-site assistance as well as train-ing for foreign tax officials withinand outside the United Statesand is financed by and admin-istered in collaboration with theAgency for International Devel-opment. The program is coordi-nated with activities of the Inter-American Center for Tax Admin-istrators (CIAT), the Organizationof American States, the UnitedNations, other multi-country or-ganizations and various founda .-tions.

This year, Commissioner Waltersled the U . S . delegation to the6th General Assembly held atAsuncion, Paraguay .

Edward A . Dom, a S-ice official on assigh .menl to the State of Virginia; Linwood Holton,Goverror of Virginia ; and W. H. Font, VirginiaTax c-is.l.n.,

44 45

i

Active Country ProgramsThis is the tenth year In whichthe Service has provided tech-nical assistance to developingcountries. Long-term advisoryteams served in Bolivia, Brazil,Colombia, Costa Rica, DominicanRepublic, El Salavador, Guate-mala, Guyana, Honduras, Jamai-ca, Nicaragua, Paraguay, Trini-dad and Tobago, Uruguay andViet Nam . The teams are staffedby IRS technicians who generallyserve two years of duty . They areaided by specialists on short-term assignments drawn from theService and occasionally fromstate and local governments .

Service personnel conducted sur-veys of the tax administrationsystems of Barbados and Zambiato identify major weaknesses,propose solutions, and outline anapproach for strengthening theirsystems.

The request from the Governmentof Zambia reflects a rising inter-est within Africa for the kind oftechnical assistance the Servicehas been extending throughoutthe world . Service representa-tives arranged meetings with_taxofficials of the East Africa Com-munity, Liberia, the EconomicCommission for Africa and oth-ers. During the year, Liberia be-gan implementing recommenda-tions made during a 1970 survey .

Host countries continued to Makegains in audit, collections, proc-essing of tax returns and remit-tances, taxpayer education, train-ing, organization, and manage-ment . This progress is reflectedin increased voluntary compli-ance and rising revenue receipts .

Each yea, the Service is host to many foreignt- Officials . pictured b- (1. 1. 1.) .1. John-hid

M . Wait.,., C .. he .1 Internal R-.nuje ; J. C. Duignan, Chairman Of the IrishR

.'enue Commissioners; S . P. Bedford, Col~lector General of the Irish lhl.nd R.,enuu;

and Raymond F. Harless, Deputy Commis-sho-, of Internal R-n-

Foreign VisitorsDuring the year, 452 foreign taxofficials came to study and ob-serve tax administration in a se-ries of courses offered under,theInternational Tax AdministrationTraining Series (INTAX), and toparticipate in programs specialtydesigned to fit their needs . Thecourses covered the major func-tions of tax administration, andthe observation sites includedstate and local agencies as wellas Service installations . Visitorsthis year came from 59 countriesand ranged from subcabinet offi-cials to technicians .

3052 Officials trom1 01 Countries Were Trained inIrh; United Statesin

eat Ten Years

1. ..' - - -. In

Inter-American Center ofTax Administrators(CIAT)QAT is an organization of taxadministrators from 23 countriesin North and South America . Itcontinues to attract world-wideattention as an organization de-voted to self-help in tax adminis-tration . CIAT's technical semi-nars on audit, automatic dataprocessing, and land tax admin-istration draw Participants fromall parts of the world . Its monthlynewsletter and technical materi-als generated by seminars andgeneral assemblies receiveworld-wide distribution. CIATalso arranges for the exchange oftechnical missions among mem-ber countries . It is a model forregional organizations under con-sideration in Asia, the MiddleEast, and Africa.

46 47

- vi iii . -,iti uounsei(under the supervislon of the

Treasury Department) performsthe legal work of the InternalRevenue Service. It renders opin-ions to Service officials on sub-stantive legal questions and pro-vides technical assistance to theTreasury Department's legislativeprogram .

The Chief Counsel representsthe Commissioner in trying andin helping to settle cases dock-eted in the Tax Court. This chap-ter covers general activities inthe legal area. Important courtactions are included in the ap,pendix beginning on page 94 .

i ax CourtLitigation ActivityTax Court cases on hand as ofJune 30, 1972 amounted to 12,-625, as compared to 12,192 ayear earlier . New cases totalled8,949 for the year and the Courtdisposed of 8,507 . Dispositionsincluded 880 decided by the TaxCourt on the merits, 954 dis-missed, and 6,673 closed by stip-ulated agreement of the parties .

The Supreme Court decided onecase, which had originated in theTax Court, in favor of the Gov-ernment . The Tax Court entered523 opinions involving 824 cases .It decided 288 cases for the Gov-ernment, 84 for the taxpayer, and151 partially for the Governmentand partially for the taxpayer. Inaddition, the Tax Court entered191 Summary Opinions involving200 Small Tax Cases . In this areathe Tax Court decided 111 forthe Government, 29 for the tax-payer, and 51 partially for th e

Results In Tax Court cases

Government and partially for thetaxpayer. The Courts of Appealsrendered 177 opinions involving308 Tax Court cases ; 121 favoredthe Government, 36 favored thetaxpayer, and 20 partially favoredthe 'Government and partially fa-vored the taxpayer.

in the trial or settlement of cases,the Tax Court awarded the Gov-eminent $133 million in taxesand penalties out of $401 millionplaced in issue, and held for theGovernment $9 million out of $12million in overpayments claimedby taxpayers . At the end of theyear, $1 .6 billion remained in in-ventory to be contested in theTax Court. (The next three tablesshow comparable statistics forthe last 5 fiscal years .)

The fourth table shows the recordin trial courts (Court of Claims,U .S . District Courts and U .S . TaxCourt) having jurisdiction of Fed-eral tax cases.

Deficienciesand

penaltiesFiscal asserted

Yea, Number (thousands)

1968 5,944 $313.875

1969 5,831 393,69919 70 6,564 400.09219 7 1 7: 560 391,6051972 8507 400,63 1

Cases disposed of by settlement

TotalDeficiencies

andP...Ities

Fiscal assertedyea, Number (thousands)

1968 5,058 $281,7851969 4,776 329,9381 970 5343 352 .3281 971 6: 19 7 316,9971 972 6,673 350,129

Amountsrecovered Recovery

(thousands) Percentage

$ 98,825 31 .48145,589 36.98130 .724 32.67143 .913 36.75132,984 33.19

TotalAmounts Overallrecovered Recovery

(thousand.) percent~g,

$ 82.215 29.18118.974 36.06105,447 29.93100,788 31 .79106.301 30.36

Cases disposed of by tria I I

TotalTotal Deficiencies

number and Total

ofcasesPenalties A

m. . .is

Fiscal disposed ex-runi recovere dyear of (thousands) (thousands)

1968 611 $29.131 $13.8591969 783 59,798 22,8881 970 763 44,926 22,6541971 806 52,998 21,7791 972 880 41,132 17.37 1

1 Figures forsettled and tried casesdo notadd to overall totals, which include a smallnumber of cases dismissed .

Trial court case recor d

Actio n

Decided in Favor of Government 16 16 207 218 407 494Decided in Favor of Taxpayer 6 51 147 116 100 156Decided Partially for the taxpaye r

and partially for the Government 4 3 70 56 280 374

1 56 opinions rendered involving 70 cases .2 323 opinions rendered involving 390 cases .,

714 opinions rendered nvolving 1,024 cases .

CourtofClaims DistrictCourts TaxCourt

1971 19721 1971 i972- 1971 1972 1

OverallR ... ..ry

percentage

47 .5738 .2850 .4341 .0942.23

Tax In litigatio n(in thousands of dollars )

Status

Tax Court Refundlitigatio n

Taxes and Over- refundTotal P .. his. payments suits

Pending July $143,623 $523 *, 5Received 722,549 567 .008 15 .330 140:21 1Disposed of 547,539 400.631 12.491

134

,4

17

Pending June 30 2.293 .801 1,617,830 146,462 529,509Amount saved 227,986 132,984 9,058 85 .944

Results In refund suits (settlements and trials combined)(Amounts are in thousands of dollars )

Fiscal Year

Amo:ntsNumbe of Amount in

.,d- Percentage

cases dispute not refunded not refundeddisposed of (Thousand (Thousand

dollars) dollars)

All refund suit s

1968 1,296 $ 94,607 $ 39,856 42 .131969 1.563 120,059 72,670 60531970 1,160 84,356 50,262 59:581971 9 1 06223

48323 45 .4919 1

: :9

72 1 442 34417 8S 44 63.9 3District Courts

19 61 9691 9701 9711 97 2

Court of Claim .19 61 9691 9701 97 '1972

1: 11 8 50,703 23,562 46.47

1394 97,500 56,992 58 .451 .05349246 26.401 53 .6 1

938 63:8 16 39,841 62 .431,292 85,629 51,916 60 .6 2

178 43,904 16 .294 37 .111 69 22.559 15.678 69.50107 35 110 23.861 67.96153

42:407 8,482 20 .00150 48,788 34,028 69 .74

Civil LitigationRefund Litigation ActivitiesThis year, the Refund LitigationDivision closed 1,442 cases leav-ing a total of 3,167 cases pendingat the end of the year. In the pre-ceding year it had closed 1,091cases.

The Supreme Court renderedthree decisions in tax refundsuits, sustaining the Govern-merit's position in two of thecases. In the preceding year theSupreme Court rendered one de-cision in a refund suit sustainingthe Government's position .

Of the 136 opinions rendered bythe Courts of Appeal (involving155 cases), 89 favored the Gov-ernment, 37 favored the taxpayer,and 10 decisions partially favoredthe Government .

The amount involved in pend-ing refund litigation cases in-creased slightly to $529 .5 million,from $523.7 million at the start ofthe year. This increase resultedfrom the receipt of new casestotalling $140.2 million and thedisposal of cases totalling $134 .4million . The $140 .2 million in newcases compares to $134.1 millionin the preceding year . The 1,442refund suits disposed of duringthe year resulted in refunds of$48,474,000, consisting of $1,444,000 refunded pursuant to Courtof Claims judgments, $7,044,000refunded pursuant to districtcourt judgments, and $39,985,000refunded as a result of settle-ments . The total refund of $48,474,000 represents a recovery bythe taxpayer of about 36.06 per-cent of the amount of $134,417,-000 involved in completed refundsuits . In these refund suits, theGovernment successfully de-fended its position with respectto $85,944,000 of the amountsclaimed for refund . (Comparablestatistics for the 5 fiscal yearsappear in the table at left .)

50 51

I

Stabilization LegalServicesThe Office of the Chief Counselto the IRS established a Stabili-zation Division on November 14,1971, and appointed an AssistantRegional Counsel (Stabilization)In each of the seven RegionalOffices. The Division provides in-terpretative advice and guidanceto the Assistant Commissioner(Stabilization), field offices, andthe public . It issues rulings andreviews regulations issued by theCost of Living Council, the PriceCommission, and the Pay Board .The Assistant Regional Counsels,(Stabilization) provide interpreta-tive guidance on rulings issuedby the Stabilization Division andon regulations issued by the pol-icy bodies .

The Service published 292 rul-ings during the fiscal year. Theseincluded : 60 Cost of Living Coun-cil Rulings ; 192 Price Commis-sion Rulings ; and 40 Pay BoardRulings . It also issued 157 pri-vate rulings . Requests for recon-sideration are filed with the Of-fice of Chief Counsel and appealsare filed with policy bodies.

Case Disposals By Office of Chief Counse l

Number of Cases

1~ .lnff

Lk~

52

One of the first published rul-ings involved the question ofwhether wage increases are al-lowable costs . Early in Phase 11of the Economic StabilizationProgram a potential conflict sur-faced between the goals of sta-bilizing prices and stabilizingwages and salaries . Price in-creases can occur if justified bysufficient allowable cost in-creases, such as wages and sal-aries . If the Pay Board approvesan increase in wages of 5 .5%then the firm can automaticallyraise prices to compensate for in-creased costs . Price CommissionRuling 1971-3, 36 Fed. Reg.23661 (1971) held that wage pay-ments including fringe benefitsin excess of 5 .5% per year arenot generally allowable costs .

A situation arose on price post-ing requirements for drugs. Manystates prohibit a pharmacist fromposting prices for drugs . Relyingon the Supremacy Clause of theConstitution, Price CommissionRuling 1972-28, 37 Fed . Reg .1412 (1972) required the postingof drug prices despite states lawsto the contrary.

197 1

= Im

T~

am

V..m

A ruling of wide impact in theprice area is 1972-13, 37 Fed .Reg . 765 (1972) . It deals with al-lowing a manufacturer to in-crease prices over the baseprice, only to reflect allowablecosts in effect on November 13,1971 and cost increases afterthat date . The question arosewhether the manufacturer canraise prices only on a dollar-for-d6liar basis or on a percentagebasis which would allow a profitelement in the new price. TheRuling held that the manufac-turer can raise prices by thesame percent that costs increaseif the price increase did notcause the manufacturer's profitmargin to exceed his base periodprofit margin .

Another ruling deals with the relationship between price in-creases and the base periodprofit margin . Price CommissionRuling 1972-206, 37 Fed. Reg .13192 (1972) held that if proof ex-ists that a firm would have had asmaller margin without a priceincrease, the profit margin limi-tation is in violation .

Pay Board Ruling 1972-32, in-volved parties to a contract whoagreed that . any portion of theincrease in wages and salariesnot allowable under the Stabili-zation Program would be thesubject of a supplemental wageprovision after lifting of the con-trols which would provide thefull value of the wage increasedenied . The ruling held that thevalue of this provision would bechargeable against the 5 .5 per-cent wage and salary limitation.

Regulations issued include pro-cedural rules with respect todisclosure of the results of eco-nomic stabilization investiga-tions ; rules relating to stabiliza-tion matters before the Service ;and the authority of Service em-ployees and the Department ofJustice to inspect stabilizationrecords for tax administrationpurposes .

General LitigationLegal SerVicesGeneral litigation case receiptsincreased sharply over the pre-ceding year. Although &posalsalso increased (from 11,810 casesin 1971 to 13,320 in 1972) the in-ventory of pending cases at theend of the year stands at 7,429,an increase of 555 cases over1971 . Increased receipts oc-curred at National Office andfield levels and related to casesin litigation and non-court cases,such as advisory opinions. Re-ceipts at the field level for 1972included 6,996 cases in litigationand 6,336 non-court cases, ascompared to 1971 field receiptsof 6,765 cases in litigation and5,840 non-court cases . NationalOffice receipts for the year in-cluded 279 cases in litigation and246 non-court cases, as com-pared to 1971 figures of 199 and260, respectively. Field disposalsfor 1972 included 6,698 cases inlitigation and 6,226 non-courtcases, in comparison to 1971 dis-posals of 5,911 cases in litigationand 5,544 non-court cases. Fordetailed statistics on case re-ceipts and disposals, see tables18 through 25 on page 125 .

The Supreme Court did not ren-der any decisions in the generallitigation area during the year. Itdid grant certiorari In one case .Courts of appeals received anddenied 10 petitions for writs ofcertiorari. The decisions in thegeneral litigation area involve is-sues relating to the collection ofFederal tax claims and liens, andmatters concerning injunctionsand civil enforcement of the In-ternal Revenue summons . Thesummons cases continue to rep-resent a major area of litigationat the appellate level . Summariesof some of the general litigationcases begin at page 96.

-_- o - 1~ - I

The Office of the Chief Counselfumished substantial legal serv-Ices in connection with disclo-sure of information, non-collec-tion matters, and matters arisingunder the Freedom of Informa-tion Act (R U .S.C . 552) . Generallitigation supervisors and law-yers participated in training ses-sions held In the regions in theAdvanced Techn ical TrainingProgram for Revenue Officersand the Special Procedures Sem-inars. They also rendered exten-sive legal assistance and per-formed many services which didnot relate to docketed cases,such as reviewing district officecollection cases and furnishingadvice on administrative proce-dures.

Interpretative ActivitiesPersonnel of the Chief Counsel'sOffice participated with othertechnical personnel in solving ur-gent problems. They also re-viewed all revenue rulings priorto publication . Many questions ofsignificant impact arose, such asthe following :

In the partnership area, ChiefCounsel personnel participatedin the preparation of Rev. Proc.72-13, 1972-2 I .R.B. 263, whichestablishes the conditions ne ces-sary before the Service wi 11 con-sider Issuing advance rulingsconcerning classification of anorganization as a limited partner-ship where a corporation Is thesole general partner. The twotests that must be satisfied are :(1) that the limited partners willnot own directly or indirectly, in-dividually or in the aggregate,more than 20% of the stock ofthe corporate general partner orany affiliates ; and (2) if the cor-porate general partner has anintere~t in only one limited part-nership and total contributions tothat partnership are less than$2,500,000 the net worth of thecorporate general partner at alltimes will be at least 15% of suchtotal contributions or $250,000,whichever is lesser, and if thetotal contributions to the partner-ship are $250,000 or more, thenet worth of the corporate gen-eral partner at all times will be atleast 10% of the total contribu-tions.

Attorneys in the Interpretative Di-vision considered the treatmentof a lessee's gain or loss uponthe sale of a leasehold of landwhere the lessee uses the leasein his trade or business but is nota dealer in leases . The publica-tion of Rev. Rul . 72-85, 1972-9I.R.B. 15, resolved the matter byconcluding that such a leasehold is property used in the tradeor business for purposes of Code1231 .

53

i

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y panicipmeo in0tZ"~11epa'r'a'tìò"n 5f Rev . Rul . 72-315, 1972-26, I .R .B . 8, whichholds that all finance charges onrevolving charge accounts at re-tail stores are deductible as In-terest under Code Section 163(a) . They considered related is-sues in connection with Rev .Rul . 72-100, 197 :2-10, I.R .B . 9,which deals with the reporting ofinterest Income by the lender andthe interest deduction on an in-stallment loan where the note re-quires, in the event of a prepay-ment, computation of interest bythe Rule of 78's method .

As in the past, tax exempt or-ganizations received a great dealof attention . In one case, Serviceattorneys considered whether aninternational exposition com-memorating historical events andcultural achievements and ex-hibiting products of various na-tions qualifies for recognition ofexemption under Code Section501 (c) (3) . Rev. Rul . 71-545,1971-2, C .B . 235 held that theorganization qualified for theexemption .

Another problem involved the taxstatus of abortion clinics that op-erate on a nonprofit basis andprovide abortions for indigentwomen .

54

Leglisiative ACtivitiesLegislative AssistanceThe Office of Chief Counsel pre-pared reports and summaries onfifteen bills in the alcohol, to-bacco, firearms, and explosivesarea for the Treasury Depart-ment . Attorneys also preparedcomments for departmental useon five legislative proposals .

Revenue LegislativeAssistance Provide dThe Service provided technicalassistance to other offices of theTreasury Department and tocommittees of Congress in de-veloping legislation and legisla-tive proposals relating to internalrevenue matters. This assistanceinvolved (1) preparing informa-tion reports, technical reports,drafts of bills and accompanyingtechnical explanations and otherdata relating to legislative mat-ters, and (2) attending publichearings and congressional com-mittee meetings . Most of the ac-tivity involved efforts toward leg-islation enacted during the year .

The Service also conducted re-search and study projects in-voiving tax administrative prob-lems and unintended benefitsand inequities with a view towardcorrective legislation .

7 . Planning Activities

IntroductionThe Service's planning activitiesencompassed complex subjectssuch as the new Asset Deprecia-tion Range System, a restructur-ing of the income tax withholdingsystem, a system for detectingunallowable tax return itemsprior to audit, planning for rev-enue sharing, Federal collectionof state income taxes and fulluse of information

d oc~ments for

delinquency checking and in-come reporting .

Summaries of some of the moreimportant developments follow.

Office of Industrial EconomicsThe Service organized an Officeof Industrial Economics as a di-.

ion of Planning and Researchvl searly in fiscal 1972, with re-sponsibility for recommendingchanges in definitions of assetguideline classes and in the as-sociated depreciation and repairnorms necessary to the newClass Life Depreciation RangeSystem . The Office is staffed byeconomists and engineers whoformulate plans for the future col-lection and analysis of tax re-turn data . These professionalscollect information from tradesources to serve as a basis forapplying the Class Life System tovarious types of real and per-sonal property, particularly com-puters, and such activities asshipbuilding, communications,commercial fisheries, and animalhusbandry . From these sourcesthey make recommendations fornew asset classes and for revi-sion of asset classes and theirdepreciation and repair guide-lines .

The Class Life System affordstaxpayers the opportunity to de-termine reasonable allowancesfor depreciation on property forwhich the Service has estab-lished guideline classes, pro-vided taxpayers adhere to pre-scribed accounting and reportingrules . Taxpayers electing theClass Life System may also electto use a guideline repair allow-ance rule for the determination ofallowable repair and mainte-nance expense .

Storage and Retrieval ofImages of Returns andRelated Documents (STAR)The Service continued a test tostudy costs and benefits of usingmicrofilmed images in lieu oforiginal documents at the Cin-cinnati Service Center and theCleveland District Office . By film-ing pages of all returns and re-lated documents there is no needto extract documents from thefiles . Users can make newimages or photocopies withview-printers. Microfilm images

permit faster response to tax-payer correspondence, and moreefficient service to taxpayers whovisit District Offices .

Technical ReferenceInformationResearchers tested an automatedtechnical reference system thisyear. Computers stored technicalinformation from the U . S. Code,the Cumulative Bulletin, IndexDigest Supplements, and se-lected court decisions. Attorneysand technical personnel at theNational Office and the Cincin-nati District searched this database via remote terminals. Usersinput key words or phrases, andin response, the terminals dis-played relevant citations, ab-stracts, or text .

Remittance ProcessingSystem [RPS )The Service tested a program tomodernize the clearing, deposit-ing, and crediting of taxpayer'schecks through an automatedRemittance Processing System .

The heart of the RPS is a newcomputer device which verifiesthe taxpayer's identification andremittance amount and signalsthe operator to insert the checkinto the system . The check thenmoves past print stations whereit is automatically encoded withthe remittance amount and en-dorsed, with the complete audittrail printed on the reverse side.The operator then places the ac-companying document, such as areturn or bill, into the numberingstation for imprinting of the doc-ument number and remittanceamount.

Benefits of this new system in-clude rapid posting of credits totax account files, and a betteraudit trail to facilitate paymenttracers.

Research Program sIn 1972 the Service directed re-search toward (a) Improving thewithholding system (b) devel-oping proposed legislation topromote the quality of tax returnpreparer services ; (c) designinga system to administer Federalcollection of state income taxes,(d) providing data for use inFederal revenue sharing ; (a) for-mulating a plant to extract bene-fits from information documents ;and (f) implementing the em-ployee plans master file system.

To counter underwithholdingproblems inherent in the Tax Re-form Act of 1969, Congresspassed new legislation . It in-cluded : (a) restructuring the with-holding system to provide onlyone low income allowance perfamily in a dual employment sit-uation ; (b) incorporating the dol-lar limitation into the withholdingsystem on the standard deduc-tion ; and (c) adding a seventhwithholding rate and bracket tothe previous six-rate schedule .The purpose of these changes isto withhold the full amount of taxliability up to a wage level ofabout $25,000 for single personsand $31,000 for married coupleswhere only one spouse works .

To avoid excessive withholding,the law provides for a specialadded withholding allowance (ex-cept in dual employment situa-tions) and a liberalization of therules for claiming additional with-holding allowances due to largeitemized deductlons.~

Tax Return PreparersIn response to growing com-plaints alleging incompetent andunethical performance by sometax return preparers, the Servicemade a comprehensive study ofpending Congressional bills andother proposals to remedy thesituation . The Service consultedprofessional organizations andleading commercial tax returnpreparing companies . Commis-sioner Walters presented theproblems as well as the Service's*efforts to deal with them at apublic hearing of the Legal andMonetary Affairs Subcommittee

of the House Committee on Gov-ernment Operations . Pendingproposals are :

1 . Imposing a statutory penaltyof from 10 to 25 percent of thedeficiency in tax (caused bythe preparer) on the preparerwho knowingly understatesincome or overstates deduc-tions, exemptions, or credits .

2. Authorizing the Governmentto apply to a District Court foran injunction to prevent fur-ther preparation of returns bypreparers who consistentlyprepare false or deficient re-turns .

3 . Establishing a pen a Ity on thepreparer of approximately $5for each return which he failsto sign .

4. Requiring each pre parer tofu rnish an annual informationreturn

Iisting all of their client

taxpayers with their Identifica-tion numbers.

The Service is also consideringthe preparation of model coursesand course materials for the useof schools and universities whooffer instruction In tax returnpreparation .

Federal Collection of StateIndividual Income Taxe sThe Congress is considering leg-islation to authorize the Serviceby agreements, to collect and ad-minister State individual incometaxes . A State would have to con-form Its individual Income tax lawclosely to the Federal law beforeagreements could be made .

Under the proposed legislation,Federal administrative and judi-cial procedures would apply tothe collection of State incometax. The Service would collectstate withholding and estimatedincome taxes under the sameprocedures applicable to Federaltaxes .

This legislation would require re-design of the Service's systemsand procedures-including modi-fications in tax forms, instruc-tions, regulations, internal oper-ating procedures, and master filesystems .

Employee Plan MasterFile Syste mThe Service developed a newmaster file system for employeepension, profit-sharing, and otherdeferred compensation plans . It issimilar to the Business MasterFile and Individual Master File,and links employer entities withadopted plans, the trusts or fundsthrough which they finance theirplans and the fiduciaries of thesetrusts or funds . The system willaid the Service in selecting re-turns for audit, in detecting non-filers, and in providing manage-ment information for monitoringthe employee plan and fund area .As part of the President's five-point program for pension reform,the Departments of the Treasuryand Labor have undertaken astudy of the nature and extent ofemployee benefit losses resultingfrom termination of certain quali-fied pension and profit-sharingplans.

Revenue Sharin gLegislation is pending In Con-gress for sharing Federal reve-nue by State and local govern-ments . Under this legislation, theService would extract data fromFederal individugi income tax re-turns to determine the amountsof Federal assistance to Statesand local government units. Tax-payers will provide their actualplace of residence rather thanmailing addresses on their taxreturns since this will determinethe allocation of revenue sharingfunds . The Service is developingchanges in 1972 individual In-come tax forms and Instructionsand redesigning and reprogram-ming data processing proceduresto provide required data by thefall of 1973 .

56 57

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Total Information DocumentUtilization Progra mA plan for the creation of a wageand other Income informationtape file incorporates all of theuseable information documentsas a base for conducting more ef-fective income and employmenttax enforcement programs . Thisprogram should increase tax-payer compliance and revenueby pinpointing delinquent returnleads and assuring that payersand payees have properly re-ported all income and withheldtaxes .

Federal-State CooperationThe Service expanded programsfor Federal-State cooperation in1972 . Tax administrators in 41States, and the District of Colum-bia and Puerto Rico, now receiveuniform data on magnetic tapefrom the Service's IndividualMaster File, Only 32 States re-ceived data in the previous year .With the exception of Nevadaand Texas the Service has en-tered into agreements for ex-change of tax Information withall States, and the District ofColumbia and Puerto Rico. Overone-half of these agreementsconform to the model designedto reflect recent changes inFederal and State tax administra-tion .

Long-Range Planning SystemDevelops Program Plan sIn 1971, the Service re-examinedits long-range planning processand subsequently developed anew System which is a simplified,flexible version of the Planning,Programming, and BudgetingSystem (PPBS) . The new systemdefines the nature and size of thetax administration job, developsgoals, proposes and analyzes dif-ferent programs, establishes con-crete program objectives, pro-vides the basis for budgeting re-sources and for evaluating effec-tiveness In terms of objectives.

Regional Commissioners increas-ingly are participating in thelong-range planning processthrough their review of programissues and assumptions, andthrough conferences devoted toreview of program plhns .

The Taxpayer ComplianceMeasurement ProgramThe Compliarice MeasurementProgram (TCMP) is the Service'smajor long-term scientific re-search program . The programuses statistical survey techniquesto determine how well taxpayersare complying with tax laws .TCIVIP provides a basis to com-pare the size of the tax adminis-tration job versus the amount ofthe job being done . By highlight-ing significant non-complianceproblems, it allows the Service'sprogram development effort tofocus on the areas most in needof attention .

TCMP information is also neces-sary to develop the DiscriminantFunction formulas used to selecthigh error probability returns forexamination .

Analytical Studies

Sharpen Program

DevelopmentThe Service conductstd a numberof analytical and organizationalstudies during the year. These in-clude :

Discriminant FunctionFormulas Developed forSmall Corporation ReturnsA completed TCMP survey of cor-porations with assets of less than$1 million is helping to developdiscriminant function formulas toselect small corporations' returnsfor examination . The Service willinstall the new classification sys-tem in 1973.

Enforcement Operations inHazardous Duty AreasThe Service initiated a study ofthe hazards to enforcement per-sonnel working in inner city areaswith a high incidence of violentcrime . Major focal areas of thestudy include the exclusive useof office audit techniques for re-turns from these areas, and im-proved coordination of accountcollection activities .

Measuring the Impact ofCompliance ProgramsThe Service is conducting twostudies to develop methods formeasuring the impact of enforce-ment programs on taxpayer com-pliance.

The fi rst study attempts toexamine the deterrent effect ofthe returns examination programon compliance . Information onthe tax reported on returns in theyears before and after audit willhelp determine whether audit in-creases the amount of tax re-ported in subsequent years.

The second study will use spe-cialized statistical methods todetermine the effects of the Serv-ice's audit program, other IRScompliance programs, and socialand economic factors on levelsof compliance for a cross sectionof taxpayers .

Statistics of Income

HighlightsEstimates of individual incomeand business receipts publishedin the Statistics of Income re-ports reflected continued growthin the U. S. economy .

Individual taxpayers reported ad-justed gross income of $632 bil-lion on tax year 1970 returns, up4.7 percent from 1969 . Taxableincome was $401 billion after al-lowing for personal exemptionsand deductions . Changes in in-dividual filing requirements andincreased deductions grantedcertain low-income taxpayers Inthe Tax Reform Act of 1969dampened the amount of the1970 increase in income .

Receipts reported on businessreturns increased to more than

$1.9 trillion . Corporations alone

accounted for $1 .6 trillion of taxyear 1970 receipts, while cor-porate profits increased to $83billion . In the unincorporatedarea, proprietorships reported re-ceipts of $238 billion and profitsof $33 billion ; partnerships hadprofits of $9 .8 billion on receiptsof $92 billion .

The table below focuses on thefrequency and amount of per-sonal deductions and exemptionsclaimed on individual income taxreturns. The total amount of de-ductions and exemptions for taxyear 1970 was approximately 28percent greater than that for1966 . This growth resulted mainlyfrom the tremendous increase initemized deductions, up almost62 percent in the period.

The chart at the top of the nextpage reflects the large increasein deductions itemized on indi-vidual income tax returns. In theperiod 1966-1970, deductions forState and local income taxes,real estate taxes and home mort-gage interest rose by 121 per-cent, 58 percent, and 41 percentrespectively . Over the longer pe-riod 1960-1970, the total amountof taxes deducted more thantripled (up 205 percent) and de-ductions for interest paid hasa most tripled (up 184 percent) .

Chart B on the next page pic-tures how the returns that indi-viduals filed for 1970 and the taxliability they reported are dis-tributed in terms of the size oftax.

Individual income tax returns: Number of returns, personal deductions and exemption s

It.. Income year

1966 1967 1968 1969 1970

(Thausa.4s)

All individual returns . total 70,160 71 .652 73,729 75,834 74.286

Standard deduction returns' 41 .500 41,877 41 .693 40,914 38.827Itemized deduction returns 28,550 29.774 32.030 34,915 35,45 9

Number of exemptions 194.062 193,036 201 .288 206,197 264.187

(Million dollars)

Total personal deductions and exemptions 193 .363 200,543 212.024 225,555 248,14 3

Amount of exemptions 116,977 118,822 120 .773Amount of standard deduction 21 .820 22,103 22,074Amount of Itemized deductions 54,565 59,523 69,177

Itemized deductions by type:

123,718 127.57421,627 32.37080 .210 88,199

Taxes total 17,468 24,360 32,045

Real estat taxes 7.315 9.362 11,559State ud Io" I income taxes 4.006 6,499 8 .997Other xes 5,925 8.481 11.489

Interest paid, total 14.971 1 Not 19,545 23,895tabulate d

Home mortgage interest 8 :142 1 1.: 71~232 1~:13978Other interest Paid 51330 1 099

Contributions 9.122 1 1,139 12.913Medical and dental expenses 7,681 8,438 1 D.588Other deductions 5,322 6.647 8,752

1 Includes returns with no adjusted gross income .

58 1 59

1!

1;

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Percent Change in Deductions Itemizedon Federa! In ividual Income TaxReturns Slope 19W

TAX UAE~LFTY

.1

Chart EL Number of Returns and Amount Of Tas~ Percent Distribution by Size of Tax Liability. 1970 for partnerships and proprietor-

PERCENT OF RETUR14S

as,

PERCENT OF TAX

Significant Developments forthe Tax Models In 1972The use of a larger computer forprocessing tax files with a stand-ard programming language meantmore flexibility and greater speedand production capacity in taxmodel operations.

The Service developed tax mod-els nine years ago to developestimates of the revenue effect ofproposed tax legislation . Eachmodel consists of the applicationof generalized computer pro-grams to specially formatted datafiles made up of samples of tax-payer records.

The models are valuable tools forfiscal, administrative, and eco-nomic planning .

The uses of tax model tabulationscan be shown by reference to theRevenue Act of 1971 . The Servicedeveloped statistical tables tosimulate the revenue effects ofthe proposed restoration of in-vestment credit provisions . Afterenactment, the Service devel-oped further simulations to pro-ject the number of returns to befiled, categorized by complexity .

In the past year other Govern-ment agencies made use of taxmodel data . The Department ofAgriculture requested tabulationsconcerning farm income by typeof income and geographic re-gion ; the Small Business Admin-istration requested income dat a

ships by size of receipts, indus-trial classification, and State ; therecently established Cost of Liv-ing Council requested corporatesales data by industrial classifi-

sa cations and size classes tailoredto the Council's purposes .

1 .

Returns Filed ProjectionsReturns filed projections serve asa basis for planning activitiesthroughout the Service . The Serv-ice revises the projections eachyear to include c hanges in taxlav~ and to incorp

0rate the most

recent thinking in economic anddemographic expectations.

Between 1965 and 1970, the totalnumber of returns filed increasedalmost 11 million, with much ofthe increase occurring in indi-vidual returns. Between 1970 and197-2, the total number of returnsdropped almost 3 million . This islargely traceable to changes infiling requirements for individualsand other provisions of the TaxReform Act of 1969, and the Rev-enue Act of 1971 .

Present indications are that thetotal number of returns to befiled will begin to grow rapidlystarting in 1973, and by 1975 willexceed 120 million returns andshould reach 132 million by 1980 .

Projections of some major cate-gories of returns are shown inthe table below.

Selected Types of Returns Filed in 1971, and Projected for 1973, 2975, and 1980 by Calendar Year

Type of Return

(Thouxands)

Actual1971

Totalreturns

Individual . tota l

AG~ under $10,OOD IAG $ 1 0,000 and over

FiduciaryPartnership

Corporation

Forms 1 120, 1120 Speci .1, tota lAssets under $50,000 2

Assets $50 .000 under $1 millicnAssets $1 million or moreFor. 1120.S. I 120-DISC and

1120 X

EmploymentEstate and GiftExempt OrganizationExciseOtherx

111,374

75,392

51,40223,990

1,2~121,005

1,833

1,54 2682757103

Proi-lied1973 2 97 5

114,843 120,069

77 .425 81 .864

48 .981 47,71028,443 34,15 4

1,374 1 .5531 .026 1,042

1 .965 2 .105

1,640 1 .74 1703 739$21 876116 126

290 325 364

21,909 22,981 23,141374 385 423562 524 568709 740 73 0

8 .359 8,424 8 .663

C e .g .2980 1971~1980

131 .819 18.4

91,618 21 .5

44 .271 13 .947,347 97 .4

1,978 60.51,083 7.7

2,480 35.3

2.021 . 31.0837 22 .8

1 .028 35 .8155 50.2

459

23 .75452768330 1

9 .396

58. 3

8 .440 .921 .4

-57 .612 .4

NOTE : Detail may not add because of rounding. Data by size class Ire estimated .I In addition to Form 1040, includes Forms 1040A . 1040C, NR, PR, and SS .:,n,.:U.d .. For. 1 120 returns with assets not reported.

des Forms 7 . 8, 11 . 118, 1 IC . 678 through 1971, 4705, 4706, 4707, 4708. 1040ES, 7004, 7005, 2438, and 1042 .

60 61

Financial DevelopmentsThe Service's fiscal year 1972budget totaled $1 .1 billion, pro-viding for an employment levelof close to 73,000 . Administrationcosts amount' to approximatelyone-half of one percent of taxcollections .

A number of internal organiza-tional developments in 1972brought imports nt budgetarychanges to the Service. Late inFY 1971, the Secretary approvedchanges in the

IRS organization

that resulted in a newly desig-nated appropriation : Accounts,Collection and Taxpayer Service(ACTS). Under this alignment,revenue accounting and returnsprocessing functions, formerly anappropriaiton in themselves, Col-lection (Formerly in Compliance),and an expanded taxpayer serv-ice program were combined toform the new appropriation .

In the shift of the Alcohol, To-bacco, and Firearms Division to aseparate bureau within Treasury,the Service lost 4,000 man yearsand $73 .7 million of its appropria-tion which were shifted to thenew AT&F Bureau.

Cost Reduction :ndManagement Im rovementEfforts Yield SubstantialSaving sCost reduction and managementimprovement programs saved theService $11 .2 million in 1972 .

Of the total savings realized, $3.4million is attributable to 9 majorprojects, several of which appearelsewhere in this report. Hun-dreds of operational improve-ments accounted for the balanceof $7 .8 million .

64

Recruitment EffortsSuccessful In Face ofRequirementsTwo developments had some im-pact on the 1972 recruitmenteffort . First, a government-Widerequirement to reduce the aver-age grade level caused the Serv-ice to recruit new employees atthe lowest possible grade level.The Service had to hire at GS-4or GS-5, instead of the moreusual GS-7 level . A large numberof qualified candidates acceptedGS-5 .

The other development involvedcancellation of special salaryrates for accountants and accel-erated promotions from GS-5 toGS-7 for revenue agents andspecial agents .

Man,Years Authorized and Realize d

Appropriation 1971

Salaries and expenses 1 .560

Accounts, collection andtaxpayer service 23 .110

Compliance 45,281

Total 69,951

Increase 1972 over 1971

Service Employee Nominatedas Outstanding FederalHandicapped EmployeeThe Service nominated MissPatricia Porembski, a cerebralpalsy victim and a Tax Examinerat the North Atlantic ServiceCenter, for the Outstanding Fed-eral Handicapped Employee ofthe Year. The Civil Service Com-mission honored her at a cere-mony on April 6th, during whicheach finalist received a specialcitation from Mrs . Tricia NixonCox . At a subsequent ceremonyPatricia received a plaque as theIRS nominee. Other nomineesawarded IRS plaques are : JosephCihanowyz, Librarian, NewarkDistrict ; James A. Gray, Tax Ex--anniner, Jacksonville District ; andReese Nelson, Accounting Tech-nician, Ogden Service Center .

Authorized RealizedPercentageRealized

2972 1972 1972 1971 1972

2 .687 1,566 1.660 100 .4 98 .4

36.55 22,125 36 .089 95 .7 98 .7

34 . 502 45,045 34,198 99 .5 99 .172,744 68,736 71,947 98 .3 98 .9

+2,793 +3,211 + .6

Note:Deiinouert Accounts and Returns function transferred from Compliance to Accounts,Collection & Taxpayer Service in 1972 .

Plaques Presented forDistinguished WorkTwenty-six persons receive dplaques for their distinguishedwork for the Service's handi-capped . Twenty-two are Serviceworkers, while four are from out-side the Service.

President's CommitteeCommends the Service onEmployment of theHandicappedIn a letter to the Commissioneron December 9, 1971, ChairmanHarold Russell of the President'sCommittee on Employment of theHandicapped referred to theService as "an agency doing anoutstanding job of opening upbroader opportunities for thehandicapped -many times inareas where the handicappedhave never worked before." Mr .Russell extended his congratula-tions to the Commissioner and to"all who have had a part in com-piling such a splendid record ."The Commissioner passed onthis tribute to the many Serviceemployees who have worked withenthusiasm and dedication onthe program for employing thehandicapped .

The Service continued to makeinroads for employment of deafprofessionals (programmers andstatisticians), the retarded (about100 are on Service rolls), and theblind as taxpayer service repre-sentatives, (71 in 42 districts, 50cities, 35 states).

Handicapped employees continued to do agood job for the Service. Patricia Porembskic nQuared cerebral palsy to pursue full-timeemployment a the Senior T., Exarnim., at theBrookhaven Service Center . This year shewas presented with In award a an -11tnd-ing handicapped Federal employee . Shownleft to right are Commissioner Welt0m. Patri .cia Porembskl, Patricia Milan C-, and JayneB. Spain at the ceremony.

Although confined to a wheelchair since blah,Donad Peterson, Pictured at his deak In theOgden Service Center, we. an. .1 212 p .me.n1el 1mP'0y1*1 who 1-11mat In. challenge., s new i0b

atthe "same Serlice Confer.

65

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J Roy Kumm', Executive Director, Arkansas En-I .,p,i,.a

'., the Blind, nao .i- . plaque to,

his distinguished work in behalf of the SOrv-fee's handicapped . S-hty blind TaxpayersSenrice Representatives ho,e been trained bYthe Enterprise . A. J. S,hafi., Direct., .1 IRSP. . .rm.1 DN4i.h, and Nicholas W. Wiffirthm,IRS Coordinator to, the EmPlOYMON 01 theHandicapped, made

the p ....motion . Pictured

tell to fight, Mr. Schaller, Mr. Kumpe, and Mr .Willi.. .

Printed Products for theVisually HandicappedLast year, the Service produced"Your Federal Income Tax" (Pub-lication 17) in a form useful forthe visually handicapped . Byusing a process of electroniccomposition, finished productsappear in braille for the blind andin large print for the partiallysighted .

66

Scholarship ProgramAids DisadvantagedThe Service inaugurated a schol-arship program for disadvantagedhigh school seniors who want tomajor in accounting while work-ing part-time and during summervacations . The scholarships pro-vide employment while studentsare not attending college, pluspa yment of fees and expensesup to a maximum of $5,000 peryear-the bulk of which is forsalaries .

Union RelationsSuccessful negotiations led tothe first multi-unit agreementwith the National Association ofInternal Revenue Employees(NAIRE) . At the same time, theCommissioner issued policy andphilosophy statements on union-management relations.

The signing of the agreement onApril 5 ' 1972, covering all districtoffices in which NAIRE hasgained exclusive recognition,marked the culmination of ninemonths of intense bargaining .The Service and the union startednegotiations on July 9, 1971,when NAIRE first submitted itsproposals for bargaining, and

continued them through the for-mulation of management posi-tions by a national planning com-mittee .

The agreement covers about 28,-000 employees in 54 districtoffices, marking the first time thatthe Service and a Federal em-ployee union reached a nation-wide agreement . Among impor-tant provisions are those dealingwith promotion, travel, griev-ances, training, and discipline .

The Service anticipates expan-sion and change in union rela-tions activities as a result of themulti-unit pattern of negotiatedagreements which set the tonefor similar agreements coveringservice center and regional officeemployees.

Gain Achieved inEqual EmploymentMinority group employees andwomen made encouraging gainsin all grades from GS-5 to GS-17.Twenty-two members of minoritygroups and women, assigned tosenior staff and managerial posi-tions, were at GS-15 level andabove at year's end .

Under changes in Civil Servicestandards, the Service now hiresfemale criminal investigators . TheService urged supervisors to en-courage women to compete forsupervisory and managerial jobsand the number of women serv-ing at GS-13 and above in-creased more than 20% .

New ManagementCareers ProgramThe Service implemented a newCareers Program to fill mostmanagerial positions.'Major fea-tures include : establishment ofRegional Boards, thereby placingreliance on collective judgment;a comprehensive selection anddevelopment process ; selectionin advance of first line super-visory vacancies where feasible ;required training for those select-ed for first-line supervisory posi-tions before assuming newduties ; and continued emphasison career development of em-ployees.

Training ProgramVaried and ExtensiveThe majority of Service jobs re-quire at least introductory spe-cialized training . The Training Di-vision designed over 300courses, ranging from clericaltraining to executive developmentto meet these needs . In 1972,49,000 employees enrolled in ad-vanced technical and profes-sional skills courses . An addi-tional 30,000 para-professionalsattended courses in service cen-ter occupations and nearly 5,500newly recruited em

pioyees re-

ceived training in basic skills .

Commissioner Walters (1011) shakes hands withVincent Cohnery, President at NAIRE, on theoccasion Of the Multi-Unit Agreement signingin April. The Agreement covered all districtoffice, in which NAIRE he, gained -I-N.recognition.

Course Revision StressesQuality and EconomyThe Service restructured manybasic training programs and re-moved extraneous materials toshorten training time wheneverpossible .

Typical of these redesigned pro-grams is the basic trainingcourse for revenue officers . Therevised program deleted 60 hoursof classroom time for each of the500 revenue officers trained an-nually. This revision will save 14man-years and $3 .5 million eachyear.

Similar revisions continue inbasic training courses for tax-payer service representativesand revenue agents . Approxi-mately 1100 taxpayer service rep-resentatives and 1000 new rev-enue agents receive training eachyear .

67

New Techniques atTraining CentersThe Service completed a networkof field training centers in thepast year. These facilities willprovide more efficient and eco-nonbcal training, and allow formore extensive use of modeminstructional aids such as stu-dent-responder systems andclosed-circuit television.Computer-assisted instructionplays an Important role in train-ing service center data tran-scribers. Some 6,000 employeesreceived training using this tech-nique in conjunction with the Di-rect Data Entry System . Pro-grammed instruction, algorithms,and similar techniques extendedthe concept of self-instruction .

The year's accomplishments alsoincluded the publication of aseries of program guides . Theguides mark the introduction of atrue management-.by-objeclivessystem into the training area andhave already proved to be practi-cal, efficient, management tools .

Management ProgramsRevised and UnifiedThe Service revised the BasicSupervisory Course and beganmodifying the Executive Selec-tion and Development Program toincorporate It into the new Fed-eral Executive Development Pro-gram.

Changes in the Basic SupervisoryCourse included development ofa video training unit on theoriesof management and new revisedmaterial on utilization of re-sources, performance analysis,union-management relations, andtraining and career development .Revisions to the executive devel-opment program provide guide-lines for pre-identification ofmanagers with high executive po-tential and establish a system forinsuring continued developmentof incumbent executives .

68

Plans are als6 well underway tounify the Service's various man-agement development programs .The goal of the new unified Man-agement Career Program is toguarantee uniform, systematicdevelopment by new supervisorsand managers of the skills neces-sary for performances before ac-tual assignment to the job .

Effective and Rapid TrainingThe early stages of the EconomicStabilization Program (ESP) in-volved constant change . A self-instructional Reference Guide in-cluded materials designed toenable employees to learn thenew skills needed to performtheir jobs at their work areas. Aninstructor's Manual aided inin teaching stabilization proce-dures and regulations . These me-lerials will satisfy most taxpayerservice representative needs forthe near future. The Service alsoproduced a handbook for compli-ance investigators.

Instructors from the Service, thePrice Commission, and the PayBoard conducted regional semi-nars on pay regulations and priceand rent exceptions .

Now Furniture Used toBrighten IRS Office sThe General Services Adminis-tration selected the Internal Rev-enue Serv.ice as the first majorGovernment agency to use con-temporary-style furniture . All deskwork stations in the three newIRS service centers are of con-temporary design, square cor-ners and functional form .

Contemporary desks and chairs,as well as the bright decor andopen space layout within thecenters, encourage the return ofthe 2,000 or so temporary em-ployees hired for each filing pe-riod . Further, these cheerful andattractive work areas are ex-pected to improve employeeproductivity and morale .

Facsimile TransmissionEquipment InstalledNationwideThe Service installed specialfacsimile transmission equipmentnationwide last year to supportPhase 11 of the Economic Stabili-zation Program . The National Of-fice uses automatic polling andmulti-caster broadcast devices totransmit information to its 275field offices . A transmission canreach all offices in 18 minutes.

The Accident PreventionProgra mDuring 1971, the first year of thenew "Zero In On Federal Safety"campaign, the accident preven-tion effort of the Service resultedin a frequency rate of only 1 .8disabling injuries per one millionman-hours the lowest ever . Thisrate is about 70% less than theFederal rate.

This year, Service personneldrove almost 114 million mileson official business with an acci-dent frequency rate of 7.9 permillion miles driven .

Also in 1972 the Service acted on81 claims under the Military Per-sonnel and Civilian Employees'Claims Act of 1964, settling 49 infavor of employees who sufferedpersonal property losses incidentto their employment . This is adecrease of 19 percent over thenumber of claims handled lastyear.

Improved Protection ofFacilitiesThe Service updated plans anddeveloped new procedures tocope with bomb threats, civildisorders, and demonstrationsagainst its facilities . Problems ofthis type decreased significantlyfrom the preceding two years .Service offices lost less than2,000 man-hours from bombthreat evacuations in fiscal 1972compared to 12,000 in fiscai1971 .

Inspection Activities Assureintegrity of IR SThe success of the American taxsystem depends on public confi-dence in the Internal RevenueService as the fair and impartialadministrator of the federal taxlaws. Inspection, through Its in-ternal audit and internal securityactivities, assists Service man-agers in their efforts to maintainoperational integrity . Manage-ment officials have the responsi-bility for taking appropriate ac-tion on facts developed throughaudits and investigations . Theseofficials refer violations of fed-eral criminal statutes directly tothe Department of Justice forprosecutive consideration .

Internal Audit Programs ResultIn Improved OperationsInternal audit programs providemanagement with independentreviews of the accounting, finan-cial, and other operating acti v1_ties of the Service . These reviewshelp insure that policies, proce-dures, and controls protect therevenue and are applied effi-ciently and effectively. The Serv-ice places emphasis on activitiesmost closely associated with col-lection of revenue and enforce-ment of tax laws.

Internal audit reviews automaticdata processing activities on acontinuing basis . This on-lineauditing extends to other Serviceprograms . One objective is toidentify problems of interpreta-tion or implementation as theyoccur instead of waiting for peri-odic audits. Prompt reporting en-ables management to take im-mediate action to strengthen pro-cedures, controls, and communi-cations .

Corrective actions by manage-ment on internal audit findingsoften result in additional revenueor savings, which for fiscal year1972 amounts to an estimated$37 million .

496- 192 0 - 73 - 6

Examples of improvements andsavings resulting from these ac-tions follow :

Internal Audit designed a com-puter program which identifiedmore than 82,000 income tax re-turns containing suspect exemp-tion deductions . By using dataprovided from this program, in-ternal auditors and internal se-curity inspectors detected sev-eral fraudulent refund schemesperpetrated by tax practitioners .

Another internal audit computerprogram identified over 30,000income tax returns with tax dueof more than $4 million . Tests ofreturns filed for. tax year 1969disclosed that many taxpayersmade duplicate claims of creditsfor exemptions and standard .de-ductions already allowed by thetax tables .

Another recommendation in-volved revising procedures toverify the status of survivingwidow(er) with a dependentchild . The Service had auto-matically allowed joint tax rateson all such returns although thehigher single or unmarried headof household tax rates applied inmany cases . The Service is de-termining the *correct filing statusof these taxpayers and studyingsystemic controls and tax re-turn revisions. Tests Indicate thatrevised annual procedures willresult in additional revenue ofseveral million dollars .

Investigative TeamProduces Result sInternal auditors and internal se-curity inspectors investigatebreaches of integrity by employ-ees as well as by taxpayers incollusion with employees . Inten-sive investigations have resultedin successful criminal prosecu-tions as well as recommenda-tions for improved controls andprocedures .

One investigation involved at-tempted bribery of an internalsecurity inspector. The case hasextended over several years andresulted in arrests or indictmentsof 31 employees or former em-ployees and 21 taxpayers or taxpractitioners . By June 30, 1972,controlled tax examinations inconnection with the investigationhad resulted in proposed addi-tional taxes and penalties of $8 .1million .

Another investigation broughtabout the arrest of two individ-uals on charges of preparing andfiling false tax returns . To date,investigators have identified 228returns claiming questionablerefunds of $191,000 .

Internal Security DivisionActivities ExtensiveIn ScopeContinuing Attempts to BribeService PersonnelThe Service's program of enlist-ing the support of employees inreporting bribery attempts con-tinues to show results. In fiscalyear 1972, 125 employees re-ported possible bribery attempts,resulting in 47 arrests or indict-ments .Service employees have contin-ued most effectively In bringingto justice those persons whochallenge the integrity of theService through bribery . Serviceemployees have reported 1,003bribery attempts since 1961 . Oneof every four instances resultedin prosecution action . During theeleven year period, bribery inves-tigations resulted in 283 arrests

69

111111

I

I

or indictments, and 202 convic-tions or guilty pleas . At the endof the fiscal year 41 personscharged with attempted briberyawaited trial . Bribes offered,solicited, or paid ranged from$40 .00 to $100,000. In the lattercase, the taxpayer attempted toavoid over one million dollars intax assessments .

The graph on this page Illustratesprogram results . Each bar on thegraph shows the number of at-tempted bribery cases reportedby employees ; the shaded sub-section indicates the number ofarrests or indictment each yearresulting from these reports.

The following cases show that at-tempts to bribe follow no particu-lar location or occupational pat-ems .

A New York accountant offered abribe to a revenue agent for afavorable audit . He pleaded guiltyand received a suspended prisonterm, probation, and a $3,000fine.

A Pennsylvania attorney receivedthree months imprisonment, oneyear probation, and a fine of$3,000 for attempting to bribe arevenue officer to abate penaltiesowed on an estate tax return .

A New York fish market ownerand his accountant offered abribe for a favorable audit . Theyreceived fines of $600 and $750,and sentences of one and twoyears probation, respectively .

A North Carolina liquor law vio-lator offered an investigator$2600 to induce him to delayconfidential information and notraid or investigate his illicit liq-our operations . He received 18months Imprisonment, threeyears probation, and a $24,000fine .

A Florida accountant receivedthree months Imprisonment, 20months probation, and a fine of$5,000 for offering a bribe of$1,500 to influence an audit.

70

ATTEMPTEDBRIBERY PROGRAM

Investigations,Initiated

120Arrests orIndictment,

5046

68

17

1962 1963 1964 1965

105 too

32

4

135 125

83

47 47

14 0

120

100

so

6 0

4 0

21I ' I 1 00

1966 1967 1968 1969 1970 1971 1972

Fiscel Year

An Illinois supermarket owneroffered a bribe to a revenue of-ficer to delay enforced collectionof taxes . He pleaded guilty, andreceived six months imprison-ment followed by 30 months pro-bation .

A New York Federal Home LoanBank Board employee, moon-lighting as a public accountant,offered a revenue agent $5,200for a favorable audit. He pleadedguilty and received four monthsimprisonment and three yearsprobation .

ConvictedpleadedGuilty

F.Y. '67 1419F.Y. '68 26 is

F.Y . '69 9 30F'Y . '70 1. 32F.~ . '71 22 48F .Y. '72 is 49

Total 103 197

Convictions ContinueUpward TrendComparison of convictions for thepast six fiscal years appears inthe table below. Of a total of 300convictions, 197 preferred toplead guilty rather than to go totrial .

Employees, NonFormuir ToutEmploy..

27 16 3312 33 4513 26 3920 26

4616 54 7013 54 67

91 209 300

I

Organized Crime InfluencesDuring the past thre a years theService conducted extensive in-vestigations of possible corrup-tive influence by organized crimeupon the Service. In one case

'the investigation involved 90 per-sons, 37 of whom were IRS em-ployees or former employees,and 21 were organized crime fig-ures . To date there have been 25indictments and 20 convictions .The 25 persons indicted include8 organized crime figures, 11Service employees' 4 formerService employees, and 2 taxpractitioners.

Criminal ActionRemains Constan tDuring this fiscal year officialsarrested or indicted 77 individ-uals including 12 employees orformer employees of the Serviceand 65 taxpayers, tax practition-ers or others . Comparison ofprosecutive actions initiated bythe Service during the past threeyears appears in the table below .

At the end of the year, 70 tax-payers and 18 employees or for-mer employees awaited trial orpossible indictment .

Prosecution actions coveredsuch charges as emblezzlement,selling confidential tax informa-tion, fraudulent refund schemes,attempted bribery, solicitation ofa bribe, conspiracy to defraudthe Government of taxes due,preparation of false returns,perjury, and obstruction of jus-tice .

A few examples follow :

An employee who convertedseized property to his .own use,pleaded guilty and received afine . The investigation continueswith two additional arrests .

Another employee received $13,-000 to influence his decision onofficial matters. The court sen-tenced him to one year Imprison-ment and ordered him to pay afine of $2,500 .

The court convicted an other em-ployee of unauthorized disclo-sure and conspiracy to discloseinformation from a Federal taxreturn .

In one fraudulent refund scheme,an employee filed numerous Fed-eral and state tax returns usingvalid taxpayers names and socialsecurity numbers .

Investigation

disclosed the employee main-tained the funds acquired underassumed names in 26 bank ac-counts located in Los Angeles,Chicago, Switzerland, New Yor k

PERSONS INVOLVED IN ATTEMPTSTo CORRUPT IRS

Employees or former employeesof IRSTaxpayers, tax practitioners.others

TOTAL

and the Bahamas . The Servicerecovered over $116,000, consil-tuting full restitution. The perpe-trator of the scheme pleadedguilty and received two months inprison and three years probation .

High Case ClosureRate ContinuesThe Internal Security Divisioncompleted 13,863 investigationsduring fiscal year 1972. Investiga-tors carried out police recordsearches on 15,782 persons con-sidered for temporary short-termappointments or for positionscreated for special economic andeducational programs .

The vast majority of investiga-tions involving an alleged impro-priety on the part of Service per-sonnel result in exoneration ofthe employee . The employeesidentified as involved in question-able or unlawful actions consti-tute a very small percentage ofthe IRS employment force .

The tabulation on page 72 showsthe types of investigations com-pleted during the past two yearsand related dispositions .

Number .-todor indicted

1970 1971 1072

TOTAL

21

37

58

22 12 45

54 63 156

66 : 77 201

7 1

I ~ ;.

no d,sc,pi,,a,y achons

Type of Investigation and Action 1 97 1 1972

Total Investigations Closed 14,263 13,868

Personnel Investigation s

Number of cases closed, total 11 .600 10,697

Character and Security Investigabons 8,946 7,877Conduct Investigations 499 618Special Inquiries 2.155 2,202

Actions taken by Service management officials as a resultof personnel investigation s

Retected for Employment 146 296

Clearance Letters on Conduct Investigations 1 (1) 174

Disciplinary actions, total 582 714

Separations2 222 211

Bribery . extortion . or collusion 8 2Embenlement, or theft of Government fund s

or prooo rty 2 4Fa iture of employee to pay proper tax 6 9Falsification or distortion of Governmen t

tape rts, records . etc . 91 101Una uthorized outside activity 2 9Failure to discharge duties properly 6 7Di, 0 id n

ulgence of c ~nh is itia information 0 3Acc :ptanc . of fees

of

gratuities 1 1Per orual and other misconduct 106 75

Suspension from duty and pay 37 34Reprimands, warnings . or demotions 323 469

Nondisciplinary actions 10 .913 .9.SI31

Other Investigations

Number of cases closed, total 2,663 3,171

A:ssault on Service Personnel (1) z7Disel

,sure of Office( Information 0 2

Applications for admission to practice before the I.R.S . . 899 1,178Ch

.rges ag,mst Attorneys, CPA's and Enrollees 60 78

Federal Tort Claims 214 ISOBribery 129 - 230Discrimination 2 1Investigations for other Treasury Bureaus 1 .359 1,585

included under ondisciplinary actions in previous years .rincludes resignations, retirements, or other separations while employees were

under investigation or before administrative decision was made on disciplinaryaction where in vestigation disclosed derogatory information .

Excludes nondisciplinary actions in Conduct Investigations .Data not compiled Inspection for f .y . 1971 .

Assaults and ThreatsDuring the year Intemal Securitywas assigned primary jurisdictionfor investigating threats, assaults,and forcible interference againstIRS personnel . This additionalresponsibility is being accordedthe highest priority by the In-spection Service .

Assistance to Other AgenciesThe Internal Security Divisionconducted 1,585 investigationsfor other Treasury components.One case involved cooperationwith the Federal Bureau of Inves-tigation, Secret Service and thePostal Inspection Service inbreaking a refund check theftand cashing scheme in Chicago .Inspectors have participated indetails involving protection ofdignitaries and civil disturbances.The Service loaned inspectors tothe Knapp Commission to inves-tigate corruption in the Ne w

72

York City Police Department . Mr.Whitman Knapp, CommissionChairman, commended the In-spectors for an outstanding job .He stressed hope that city de-partments could "come up witha system similar to .the InternalRevenue Service, which is rela-tively free of corruption becauseof their fine Inspection Service."

As in prior years, the Serviceprovided assistance to the VirginIslands in developing and install-ing a modem tax system. Since1962, this assistance has signifi-cantly contributed to improvedoperations .

Pictured above on the left is formor AssistantCommissioner (inspection) Vernon D. Acres,receiving an award from Commissioner John .nie M . Walters . The award was given 1, appr,clation of the magnificent confribation Mr.Acres made during the thlHeon years heserved as Assistant Commissioner (Inspec-Hart).

Gross Collections Rise Tax Collections From All Sources

Billions of Dollars

- WIN 1,ON Ch

3C9

overall tax reductions from theRevenue Act of 1971 on individ-ual, corporation, and excise taxcollections. The chart at the rightpresents data on collections forthe various tax categories .

exceeded only by those in 1967and 1969 . Improved economicconditions, higher corporate prof-its, and steadily rising salariesand wages were principal factorscontributing to the record collec-tion picture These factors offse t

to Record HighGross internal revenue collec-tions surpassed $200 billion forthe first time . Contributing to therecord level was the largestamount ever collected in onemonth, $27 .2 billion in April .Total collections of $209.9 billionwere up $183 billion (9.5%) fromfiscal year 1971 . The increasewas the third largest in history,

corporationIncome taxes

1011 .9

Individa .1income taxes

39 .9

43 J

Employment Estate andtaxes gain taxes

115 .9 1 6

Excise taxes

A

Individual income tax receipts of$108 .9 billion accounted for overone-half of total collections . Cor-poration income taxes and em-ployment taxes contributed thebulk of the remainder . Otherclasses of tax showed minorchanges .

New withholding rates-providedby the Revenue Act of 1971 haveresulted in over-withholding be-cause many taxpayers did notadjust their withholding allow-ances and exemptions to accordwith the new law. The resultingover-withholding naturallyboosted collections .

Corporation income tax collec-tions rose by $4 .6 billion, up 15 .2percent. Improved economic con-ditions and higher corporateprofits contributed to the in-crease . The 7 percent job devel-opment credit and accelerateddepreciation provisions offsetsome of the additional collectionsthat would have occurred fromrising profits .

Excise taxes levied on a variety

of manufactured products, serv-ices, and activities, declinedslightly from the 1971 recordhigh . Collections of $16.8 billionwere lower because of the repealof excise taxes on vehicles . To-bacco tax collections increasedfrom last year, while alcohol taxcollections were up $688 thou-sand. Over the last 10 years,tobacco tax collections have re-mained relatively stable whilereceipts from alcohol tax haveincreased by almost 50 percent.

Employment taxes amounting to$43.7 billion, were the secondbiggest source of revenue . In-creased rates for social security(FICA) taxes and self-employment(SECA) taxes were in effect forthe full fiscal year. Also, begin-ning January 1, 1972, the taxablebase for both went up from $7,800to $9,000 . In addition, as of Janu-ary 1, 1972, Federal Unemploy-ment Tax Act taxes extended toalmost every employer and thewage base was up from $3,000 to$4,200 .

into net Revenue refunds, Including Interest(F"or refunds by region and district, see table 5. p. 11 4

I;;;"x-__D. cra-

Gross Internal Rev . . . . C.II. .ti...(Dollars In thousands, For details see table 1 . P 102)

1272 1

Sao ..

Grand Intel I

I raconse taxes . totalCorporationIndividual. tot.)

Ill."unemployment InsuranceRisgrood frartinameard

Estate iind gift txxxm~Excises bases, total

AlcoholTobaccoOthe r

Old-age and disability Insurance, totalFederal insurance contiriburtiamn,Selfemplayment insurseca contribu-

Withhold by amPloyere 2

_EWpk;yxmmilUaxes. total

not reported separately from old-age and disability insuranceloss . an waalite, end salaries. Similarly, collections on individualI nourn . to .

not withheld are not reported separately from old-ag e

callaxti .m. 1971 A- at fasrovent

!F --ibo .0 14L647.198-

68 .5 if 131_,072;~7'f -1 _I4311AI-04,_731 1~ .732.357! '16 .6 30,31 ;J 34 .925,1506 .1 4,605,593 15.2

J ~LoaTT~186 8,126,765 &1S1 .9 100,752,421

8.839 .6 76 490 12i-- lr__64ZW.X"__ 1 6 .710,M i12 -2 2Zir2:293 IL T" 5.8_Ln,67

0 .8 9'918.5 795,3 9.519,8 37 .902,403 1, 41AI7 .256 3,714,753M9 35 .90.954,752 39-s".991 3,630,239 .1

1.0 1 11 W2.165 84.514 4.3.947.651;1 2

Ccale-clion-s are-adjusted tq exclude amounts transferred to theGovernment of Guam . For details see table 1 . p. 102 and footnote,4 . P . 11 3

2 Estimated .-Coll.ai-s of irdNiclu .1 income to . withhold r.

and disability insurance tax .s on self-employment income . Theamount of old-age and disability insurance tax collections shownis based on estimates made by the Secretary at the Treasurypursuant to the provisions of sec . 201(a) of the Social SecurityAct . amended, a nd includes all ld .age and disability insuranceta .. .

. The estimates shown for the 2 classes of individual incometaxes were derived by subtracting the old-age and disability in .surance tax estimates from the combined totals reported .

Ty" I T. .

Total refunds ofinternal reannanue 1 2

Corporation income tax-Individual Income and employment

taxes . total I

Excessive pre"'Ymment income tax 2Othar sancoars. to r.an_ Co ..,= and Fissional In

ons ACt taxesa

Ralinned rartlinarm'"unemployment insurance

Estate is'Gift is .

Excise taxes, total

AlcoholT.be-. ta.. .Manufacturers'and retailers' excise

taxes . toba l

Gasoline used on farm~s_Gassaime, nanhighavayOthe r

At other excise Issue 7

1971 1972

55~.916 .604 55.154.883

264,291 268,SS9

,55,596.555 -54.823,52B

54.285~510 53-203,111 1

1 .263,196 2,543,374546 458

47 .303 75,880

12.789 IS.3461 :715 2111 264 45:3450

8 .918 8_120Z34 390

4,636 SAM

369 6 21, 1 12472 -6 3

:78.97 5

Over the past eight years, am-Ployment taxes have soared from$17 .1 billion to $43 .7 billion Infiscal year 1972, an increase of1% percent. During this sameperiod, employment tax collec-tions replaced corporation in-come tax as the second highestsource Of revenue, increasingfrom 14 .9 percent to 20 .8 percentof total collections.

Estate and gift tax collectionsamounted to $5 .5 billion . Most ofthe $1 .7 billion growth from lastyear resulted from an administra .tive speed-up in collections . Achange in the law, effective Jan-uary 1, 1971, shortened the periodfor filing estate tax returns andremitting Payment from 15 to 9months .

Refunds Pai dAlthough two thirds of the indi-vidual taxpayers received refundsin 1972, the total number of re-funds declined slightly . The totalamount of taxes refunded to allclasses of taxpayers was $18 .9billion, including interest of

Amount rallunded Amount of(principal and Intemenct Interest Includeid

thousand dollars) (thousand dollars)

1971 2972 1972 1972

19,022,566 18,970,W 132 .140 182,76S

.3.622,489 2,894.407 87.111 134,777

15,083,753 14 .SU.417 35,526 38,704

14.207.752 13.750,BU 18,498 16,397

866.701 8",554 16.644 21,930285 19 56 7

9,014 13'~!= 328 370

52,757 52,702 6,386 5,2353.234 7,301 399 860

260.333 1.373.322 2.719 3.188

104,911 ioasoIiII1 24 61 .566 2.102 (9

1128,51113 2,246.972 437 1,951

82.638 103,619 ---- --------------- ----------19.275 23.120---- -------------- ------- -26.670 1,120.233 437 1,95 1

27.476 31.S41 , 25.272 18.217 2 .257 2 .23 1I Figures ave not been nad .cocl to affect reimbursements from and 80 .725 undeliverable checks totaling $14.082,000 in 1972.the Federal Old-Age and Survivors, Federal Disability, and'Feclenal 3 Includes refunds --not otherwise classified .-Hospital Insurance Trust Funds -ourting to $517 .614,000 in 4 Includes excess FICA cr .dits.1971 and $447,332,000 in 1972 from the Highway Trust Fund 5 Includes drawbacks and stamp redemptions .amounting to $122,296,000 in 1971 and $144 .325,000 in 1972 ; 6 Includes lubricating oil used for nonhighway purposes .a nal from the unemployment Trust Fund amounting to $9 .014,000 7 Includes narcotics, silver, wagering (exci .. and atemp.), capitalin 1971 and $13,382,000 in 1972. stock, and other excise tax refunds .2 Netof 96,148 undeliverable checks totaling $14,547,000 in 1971 - Le,. . then $500 .

74 75

1 5 il 97Z409 1A24A69 -51,660 1 5.30~5 1 .043,878 IdD72,776 28.B98 2.8

2.6 3 784,2W_ -SAII11,969 1,705.686 415.18 .0 lKi171.851 16A47,ID36 1 -24,815

70.1

4,600 46:it_ '~___5110,001__ - 3M519 6.42.4'685.1 2.206 . 1- Zi4i:i4 t 688

4 9.864,784 :: 1 -335.022 1: -3 .4

$182 .8 million . Income tax re-funded to corporations declined$728 million from 1971 . Refundsto individuals were down slightly,both in number and size of re-fund. The average refund was$251 . While the retroactive re-peal of automobile excise taxesdid not greatly increase the num-ber of refunds (because sellersclaimed the refunds and distrib-uted the money to consumers),it did result in a record amount ofexcise tax refunded .

Three New Centers

ConstructedThe Internal Revenue Service hasconstructed new service centersin Memphis, Tennessee ; Fresno,California ; and Brookhaven, NewYork to better cope with the bur-geoning processing task .

The Memphis Center began proc-essing 1971 individual income taxreturns in January 1972 for tax-payers residing in Kentucky, Ten-nessee and Virginia . Starting inJanuary 1973, this center willprocess individual business re-turns from North Carolina, Indi-ana and West Virginia,

Also, in January 1972, the FresnoService Center started process-ing individual income tax returnsreceived from the San Franciscoand Honolulu Districts. Individualreturns from the Los Angeles Dis-trict will be processed in Fresnostarting January 1973 . All otherreturns for these three districtswill be processed in Fresno be-ginning in July 1972.

The Service Center in Brook-haven, N . Y. will start processingreturns for the Brooklyn and Man-'hattan Districts on July 1, 1972,and returns for the Newark Dis-trict in October 1972 .

76

Increase in Returns Filed

One of every three Americansfiled an inconfid tax return in1972 . Three of every four individ-uals who filed returns receivedrefunds.

About one-half million taxpayerstook advantage of the new auto-matic extension, which postponesthe filing deadline w ithout pen-alty, provided the request is ac-companied by payment of the taxliability.

Taxpayers filed 112 million re-turns of all types in 1972 . The75 .7 million individual income taxreturns accounted for 66 percentof the total, while the 22 millionemployment tax returns ac-counted for 20 percent of all re-turns received ,

The following table presents dataon returns filed by type of returnfor 1971 and 1972 .

Number of returns filed, by principal type at return

(Figures in thousands . For details, see table 7, p.115 )

Type of return 1971 1972

Grand total 111,447 112ANIncome tax, total 87,842 Bugg

Individual and fiduciary, total 76,620 77,106Individual-citizens and resident aliens, total 75,280 75,684Al I

other individual and fiduciary 1,340 1,422Declarations ofestimated tax, total 7,4D8 7,320I

ndivid-I 7AGS 7,328Corporation NA NA

Partivar-hip. 1,052 1,029Corporations 1 .821 Imin

other 942

955

Employment tax, total 21,889 22,0117

Eppplc~a .' Forpt 941 15,757 1 OvalleEmployers' Form 942 (household ereployess) 3 .854 W 6

Employers' Form 943 lagricultural employees) 501 475Railroped retirement, Forms CT-1, CT-2 16 15Unemployment insurance, Form 940 1,761 1,832

Gift tax 165 191

Excise, tax, total 1,401 1,311occupational tax 701 574Form 720 (retailers, manufacturers, etc.) 308 297Alcohol 22 250Tobacco 5Highway use tax 237 295Other 127 1"

Service content process a large volume of tax

returns through many operations. Commis-sioner Johnnie At . Welfare, (. .. too) .views adata ox acting process during a visit to rhe

I Ògden, Utah Service Center. Me Is a, ..p.-med by (I . to r .) Marie Morris, Ogden SomiceCanter; Homer Croa-up, Regional Cannata.sionor

-western Region; William 1 . Groaner,

Jr ., Assistant to the Commissioner (publicAffairs); and Robert H. Terry, Ogden ServiceCenter Director .

The Service send$ millions of tax packages totaxpayers In advance at the filing season.Francis Bronvill, Director at the And.-,Mass., Service Center check, the automatedProc wing assembly through which 11 .9 mil-

..alien Forms 1040 were m .fl .d to taxpayersthroughout Now England and his . Yolk.

7 7

4~

I

:NDIVIDUALNCOME TAX RETURNSACCOUNTED FOR TWOOF EVERY THREE RETURNSRECEIVED IN 1972

MathematicalVerification byComputerService center computerschecked the mathematics on 72 .5mi Ilion individual income tax re-turns in 1972 . Computers de-lected errors on 2.2 million re-turns that resulted in $239 millionin additional tax liability . Tax-payers erred against themselves .on 1 .6 million returns . The Serv-ice decreased their reported lia-bility by $119.4 million . The netyield to the Government from thevalidation of individual returnswas $119.6 million or $1 .65 perreturn verified .

Increase in Number of Returns File d

7

Individusiand fiduciary

Individual income tax retuma, mathematically verified

thoolusuarch, ~ 72,738 - 72A=Itern 11671 '! _116n ;

NumberNumber of returns W Which

*chant" same made

Ret.- with ImCneable:NumberArmatunt

Ret- withNumberA-m .

-Net Yield:TotalAverage per return Verified

78

"rel-ciqlam;

.

LzAlliff]

E]1 .0

Total1971-111 .41972-112

a ,

D.I.hifi.r. Partnership0 estimated,I s

313.052- :1 ~--

thatunbands, 1,742 ~! 1499thoultuarnddollars 140,M5_~_11119AW

do 1 72,B17 119,5"6.. 2.37 2 .65

do 4,647 .3,762

do ~Z905 2,162

Corporation Ernpi.y.. .1 Excis and.11 the,

Income Sources Reported onMagnetic Tape Increases

The Service received almost 380million information documents(reporting wages, interest anddividends) in 1972 . Almost 90 mil-lion of these documents were onmagnetic tape which helped re-duce the amount of paperworkprocessing .

Direct date entry equipment permits Serviceperasormal to transcribe Information directlyfrem . ter return or Other d.1-11 W. map-1*1;1 top* *tin ,., ; going through rho interme.dirt a stop of ring the data on keypunchCards .

The operator pictured above can tooon a video tube the data transcribed So that Ha

mistake Is made It can be ImmediatelyC - - -led .

INFORMATION DOCUMENTS REPORTED ON MAGNETIC TAPE

T" Year196619671968195919701971

Rarporth,Documents (Thard" .011) Entities

26,248 59136,492

1 .

04847,686 2,42658,951 2,96368,300 4,637aq,162 6,583

Information documents reported on magnetic top.

79

Organization-PrincipalOff icers

Organization of theInternal Revenue Service

Internal RevenueRegions and Districts

Principal Officers

Histo rica lList of Commissioners

81

INTERNAL REVENUE SERVICE ORGANIZATION

U .S. TREASURY DEPARTMENT

INTERNAL REVENUE SERVICEI

TAXADMINISTRAXION

ADVISORY STAFF

ASSISTANTCOMMISSIONER

0~,-d-)

DIVISIONS

FadEU aNI.-I

Fla-I

OM",

IRSC-

REGIONAL INSPECTORS

17)

I

DIVISIONS

In-A-

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COMMISSIONERDep,rty ComffiWa-

ASSISTANTCOMMISSIONER

(Amm,ft, Collectionand Ta,payw SeA,e; '

A.-- -

C._~I . C__)

DIVISIONS

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

ASSISTANTTOTHE COMMISSIONER

(P,b*c Affalm )

REGIONAL COMMISSIONERS17 )

AS 1STANT REGIONALCOMMISSIONERS

DIVISIONS

Admimis-ft.

T-. ..Fka.-

AEW 1.A~IC

S AVICECENTERS11.1

DIVISIONS

Arn l.Ap

Ad- .~~

0 .. C.-

T-S~.

Internal Revenue Service

7 Regions 58 Districts

District Dia-(58)

: hIlb*Jd It-A.,7'Eal d lavalf fralm, (walkil 1 . C)ll Okittla:14mid Okla .

.". cma,

btilail Cal Cain (Katimbal, W. 11)

DIVISIONS

T . .

DIVISIONS

C-.-

GENERALCOUNSEL11

CIE1 COUNSE L

Da,,AII, CNefC-1

C-c-

-CNaIC-IT - 1

VISIONS

la=.I-

0--

REGIONAL COUNSELS

(7)

ACTIVITIES

Al....T--

Enf--G-

L~E-T .,.,C-

FieldOffice

Far6gn Pots,ON" OflatewflonalOperatims;

BONNLONDONMANILAMEXICO CITYOTTAWAPARISROMESAIGONSAO PAULOTOKYO

I

Principal Officers of theInternal Revenue Servic e

As of June 30,1972

National Officers

Office of the Commissioner

CommissionerJohnnie M . Walter sDeputy CommissionerRaymond F . HarlessAssistant to the CommissionerEdwin M . PerkinsAssistant to the CommissionerRoger V. Bart hAssistant to the Commissioner

(Public Affairs)William I . Greener, Jr.Assistant to the Deputy

Commissione rDonald C . DawkinsChairman, Tax Forms

Coordinating CommitteeJames N . Kinse lDirector, Tax Administration

AdvisoryStaffJoseph R. Harmon

Administration

Acting Assistant CommissionerAlvin M . KelleyDirector, Program StaffJulius H . Lauderdal e

Division Directors :Facilities ManagementLeo C . InglesbyFiscal ManagementAlan A. BeekPersonnelAlbert J . SchafferTraining (Acting)James R . Stone

Equal Employment OpportunityOffice r

Philip N. Sansotta

84

Compliance

Assistant CommissionerJohn F. HanlonDeputy Assistant Commi

.ssi

.oner

(Acting)Joseph G . McGowan

Division Directors :Alcohol, Tobacco, an d

FirearmsRex D . DavisAppellateArthur H . KlotzAuditSingleton B . WolfeIntelligenceRobert K . Lun dOffice of International

OperationsClarence 1 . Fox

Accounts, Colleclions an dTaxpayer Service

Assistant CommissionerDean J . BarronDeputy Assistant CommissionerGerald G . Portney

Division Directors :Collection DivisionHarold E . SnyderTaxpayer ServiceWilliam F . CullineyAccounts and Data

ProcessingDonald G . ElsberryIRS Data Center, Detroit,

Mich,Ernest ShawNational Computer Center,

Martinsburg, W. Va .Eddie Heironimu s

Inspection

Assistant Commissioner (Acting)Francis 1 . Geibel

Division Directors :Internal Audit (Acting)William C . RankinInternal SecurityRaymond N . K iely

Planning and Research

Assistant Commissioner (Acting)James R . Turne r

Division Directors :Planning and AnalysisRamon L. RayResearch (Acting)Claude D . BaldwinStatisticsVito Natrell aSystems DevelopmentLancelot W . ArmstrongOffice of Industrial

Economics (Acting)Seymour Fiekowsky

Technica l

Assistant CommissionerPeter P. Weidenbruch, Jr .Deputy Assistant CommissionerRichard J . Stakem

Division Directors :Income TaxJohn W. S . LittletonMiscellaneous and Special

Provisions TaxLinderHamblen

Technical Publications andServices (Acting)

Roy J . Linger

Economic Stabilizatio n

Acting Assistant CommissionerEdward F . Preston

Division Directors:Technical ProgramsWilliam H . ConnettService and ComplianceStanley GoldbergProgram AnalysisWilliam Daniel

Office of Chief Counsel

Chief Counse lLee H. Henke lTechnical Advisor to Chief

Counse lRobert B . JacobySpecial Assistant to Chief

Counsel (Vacant)Special Assistant to Chief

CounselLester SteinAssociate Chief Counsel

(Litigation)John T . Roger s

Division Directors :Alcohol, Tobacco, and

Firearms (Legal )Matthew J . WernethGeneral Litigatio nJ . Walter FeigenbaumEnforcement (Acting)Albert L. HenkleRefund LitigationJohn W . Hol tTax Court LitigationRobert A . Bridges

Associate Chief Counsel(Technical)

Richard M . Hah nSpecial Assistant to Chief

CounselArthur B . WhiteDivision Directors :

InterpretativeJohn L . WithersLegislation and RegulationsJames F . Drin g

Operations and PlanningWilliam P. Crewe

496-192 0 - 73 - 7

All Regional Offices at 550 MainStreet, Cincinnati, Ohio 45202,unless a different address is in-dicated .

Regional CommissionerCharles G . Keebler

Assistant RegionalCommissioners:AdministrationArthurJ . CollinsonAlcohol, Tobacco, and

FirearmsFred MurrellApellateW . Franklin HammackAuditMichael A . DeGuireAccounts, Collection &

Taxpayer Servic eWayne S . KegerreisIntelligenceHarold B . HoltStabilizationEdgar H . Hughso n

District Directors :Cincinnati, Ohio 45202Paul A. SchusterCleveland, Ohio 44199Frank S . Turbett, Jr.Detroit, Mich. 48226Thomas A . CardozaIndianapolis, Ind . 46204James E . DalyLouisville, Ky . 40202Robert J . OathParkersburg, W . Va . 26101H . Daniels Jones

Director, Central Service Center,Covington, KY. 47U1 &

Patrick J. Ruttle

Regional CounselClarence E . Price

Regional InspectorEdward A . Conroy

Mid-Atlantic Region

All Reg ion_aT_61I-icW at 2 PennCenter Plaza, Philadelphia, Pa.19102, unless a different ad-dress is indicate d

Regional CommissionerEdward J. Fitzgerald

Assistant Regiona lCommissioners:AdministrationAmerico P . AttorriAlcohol, Tobacco, an d

FirearmsEdward J . FoxApellatoVictor CuniglioAuditDwight L . JamesAccounts, Collection &

Taxpayer Servic eAnthony L . CarreaIntelligenceAmerigo R . ManziStabilizationEdward J . Mannin g

District Directors:Baltimore, Md. 21201Irving MachizNewark, N .J. 07102Roland H . Nash, Jr .Philadelphia, Pa . 19108Alfred L. WhinstonPittsburgh, Pa . 15222H . Alan LongRichmond, Va . 23240James P . BoyleWilmington, Del . 19801Charles 0 . DeWitt

Director Mid-Atlantic ServiceCenter, Philadelphia, Pa . 19155

Norman E . MorrillRegional CounselEmory L. Langdo n

Regional Inspector, Bankers Se-curities Building, Walnut andJuniper Streets, Philadelphia,Pa. 1901 7

Emanuel L . Schuster

85

11il

Southeast RegionAll Regional Offices at 275 Peach-

tree Street, N .E., Atlanta, Ga .30303, unless a different ad-dress is indicated .

Regional CommissionerWilliam J . Bookholt

Assistant RegionalCommissioners:AdministrationRichard C. McCulloughAlcohol, Tobacco, and

Fireram sWilliam N . GriffinAppellateVance N . BatesAuditHarold B. BindseilAccounts, Collection &

Taxpayer Servic eJames G . Martin, Jr.IntelligenceEdmund J . VitkusStabilizationRichard C . Lewi s

District Directors:Atlanta, Ga . 30303Walter T . CoppingerBirmingham, Ala. 35203Dwight T. BaptistColumbia, S .C . 29201Harold M . McLeodGreensboro, N .C . 27401John E. WallJackson, Miss. 39202John W. HendersonJacksonville, Fla. 32202Andrew J . O'Donnell, Jr .Nashville, Tenn. 37203James A . O'Har a

Director, Southeast Service Cen-ter, Chamblee, Ga . 30006Donald H . HollumsMemphis, Tenn . 38130

Claude A . Kyl e

Regional CounselHenry C . Stockell, Jr .

Regional InspectorDelmar L. Janney

Southwest Region

All Regional Offices at 1114 Com-merce Street, Dallas, Tex.75202, unless a different ad-dress is indicated .

Regional CommissionerAlbert W. Brabin

Assistant RegionalCommissioners :AdministrationGeorge E . AndreasonAlcohol, Tobacco, and

Firearm sBilly L . GauntAppellateRoydell S . RosfeldAuditHoward C . LongleyAccounts, Collection &

Taxpayer Servic eGeorge M. OliverIntelligenceRobert D . ElledgeStabilizationAlfred N . Kay

District Directors :Albuquerque, N. Max . 87101Maurice E . JohnsonAustin, Tex . 78701R. L. PhinneyCheyenne, Wyo . 82001T . Blair Evan sDallas, Tex. 75202(Vacant)Denver, Colo. 80202Arthur A . KennedyLittle Rock, Ark. 72203Emmett E. Cook, Jr.New Orleans, Le . 70130Carl R . GromatzkyOklahoma City, Okla. 73102Clyde L . BickerstaffWichita, Kans. 67202(Vacant)

Director, Sauthwe I S ' C-ter, Austin, Tex, 78'176-L '~iervlce (;an

Ervin B. Osbor n

Regional Counsel, 1025 ElmStreet, Dallas, Tex. 75202

William B . Riley

Regional Inspector (Acting), 1511Bryan Street, Dallas, Tex . 75201

Paul F. Kearns

Midwest Region

All Regional Offices at 35 EastWacker Drive, Chicago, Ill.60601, unless a different ad-dress is indicated .

Regional CommissionerEdwin P. Trainor

Assistant RegionalCommissioners :AdministrationRoy D . Clar kAlcohol, Tobacco, and

FirearmsCecil M . WolfeAppellate(Vacant)AuditJohn H . Rauen, Jr .Accounts, Collection &

Taxpayer ServiceDonald J . PorterIntelligenceJohn J . OlszewskiStabilization (Acting)Richard C . Voskul l

District Directors :Aberdeen, S . Dak . 57401John B. LangerChicago, Ill . 60602RogerC .BeckDes Moines, Iowa 50309Herbert B . MosherFargo, N . Dak. 58102Frederick G . KniskemMilwaukee, Wis. 53202Walter S. StumpfOmaha, Nebr . 68102Richard P. Vina lSt. Louis, Mo . 63101Eugene C . Coyl eSt. Paul, Minn . 55101George 0 . LethertSpringfield, 111 . 62704Jay G . PhiI pott

Director, Midwest ServicKansas UiTy-,Mo . 64170---

Arnold S . Dreye r

Regional CounselFrank C . Conley

Regional InspectorWilliam E. Mulroy

North-Atlantic Regio nAll Regional Offices at 90 Church

Street, New York, N .Y . 10007,unless a different address is in-dicated .

Regional CommissionerJohn J . Flyn n

Assistant RegionalCommissioners:AdministrationHarry J . BodkinAlcohol, Tobacco, an d

FirearmsJohn L . PiperAppellateTheodore C . RademakerAudi tWilliam M . WolfAccounts, Collection &

Taxpayer ServiceMarshall P. CappelliIntelligenceHoward F. McHenryStabilizationRaymond 1 . Maile r

District Directors :Albany, N .Y. 12206Donald T. HartleyAugusta, Maine 04330Whitney L . WheelerBoston, Mass . 02203William E . WilliamsBrooklyn, N .Y. 11201Elmer H . KlinsmanBuffalo, N .Y . 14202John E. FoleyBurlington, Vt. 05401Fulton D . FieldsHartford, Conn . 06103Joseph J . Conley, Jr.Manhattan, N .Y. 10007Elliott H . GrayPortsmouth, N.H. 03801Frank W . MurphyProvidence, R.I . 02903John J . O'Brie n

Director, North-Atlantic ServiceCenter Andover, Mass. 01802

Francis L . Browitt

Director, North-Atlantic ServiceCenter, Brookhaven, N.Y. 11716

Earl L . Torgerso n

Regional Counsel, 26 FederalPlaza, New York, N.Y . 10007

Marvin E. Hage n

Regional Inspector, 26 FederalPlaza, New York, N .Y . 10007

Sidney M . Wolk

Western Regio n

All Regional Offices at 870 MarketStreet, San Francisco, Calif .94102, unless a different ad-dress is indicated .

Regional CommissionerHomer0. Croasmun

Assistant RegionalCommissioners :Administration (Acting)Warren S . DeWeeseAlcohol, Tobacco, and

FirearmsBrenton G . ThorneAppellateWallace J . Spencer, Jr.AuditGeorge S . HeardAccounts, Collection &Taxpayer ServiceCharles D . MoranIntelligenceHerman F. KuehlStabilizationJoseph T. Davis

District Directors:Anchorage, Alaska 99501(Vacant )Boise, Idaho 83707Calvin E. WrightHelena, Mont . 59601Nelson L . SeeleyHonolulu, Hawaii 96813Robert M . Cutt sLos Angeles, Calif . 90012Frank S . SchmidtPhoenix, Ariz . 85025Alden W . McCanlessPortland, Ore . 97204Ralph B . ShortReno, Nevada 89502Warren A. Bate sSalt Lake City, Utah 841 10Roland V. WiseSan Francisco, Calif . 94102(Vacant)Seattle, Wash . 98121(Vacant)

Director, Western Service Center,Ogden, Utah 84405

Robert H. Terr y

Director, Western Service Center,Fresno, Calif . 93730

Leonard E. Semrick

Regional Counsel, 447 SutterStreet, San Francisco, Calif.94108

Richard C . Schwart z

Regional Inspector, 1076 MissionStreet, San Francisco, Calif.94103

Frederick R . Rowe, Jr .

86 87

Historical List ofCommissionersof Internal RevenueOffice,,:1 Commissioner of Internal Reve.true led by Act of Congress, July 1,1862

In addition, the following were ActingCommissioners during Periods Of timewhen there was no Commissioner holdingthe office : John W. Douglas,, of

Pennsyl .vania, from Nov. 1 . 1870 ' to Jan. 2, 1871 ;Henry C . Rogers,

ofPennsylvania, from

Me I to May I 18B , and from May Ito y uno 4

,1907 ;0~ohn J . Knox, of Minne .

sota, from May 11 to May 20, 1883; RobertWi Illarns, Jr., of Ohio, from Nov . 28 toDec . 19, 1900 ; Millard F. West, of Ken .tucky from A r. 12 to May 26, 1921 ; H . F.Mires : of Wap~hingl .n,y from Aug 16 toAug. 19, 1930 ; Press R . Bald r ~dge: ofIowa, from May

16 1 . Jun. 5, 1933 ;

Harold N .Groves' 0' 11 1

inois, from Jan. 23to Feb. 29, 1944 ; John S. Grah .rn, ofNorth Carolina, from Nov . 19, 1952,

toJan .19, 1953;

Justin F . Winkle, of NowYork, from Jan. 20 to Feb . 3, 1953 ;0. Gordon Del of Virginia, from Nov. Ito Dec. 4, 195s' : and from Get . I to Nov .4' 1958;

Charles 1. Fox, of Utah, fromJan . 2

1to Feb. 6, 1961 ; Bertrand M .

Herding, of Texas, from July 11, 1964 toJan . 24 : 1911;,and William .. smilh ofVirgin is

froman . 21 to Mar. 31, 1969 ;

Harold T . S"r" of Indian ., from Jun.23, 1971 to Aug. 5, 1971 .

George S . BoutwellMassachusettsJuly 17,1862/Mar. 4,1863

Joseph J . LewisPennsylvaniaMar . 18,1863/June 30,1865

William OrionNew YorkJuly 1, 1865/Oct . 31,1865

Edward A. RollinsNew HampshireNov. 1, 1865/Mar. 10, 1869

Columbus Delan oOhioMar. 11, 1869/Oct. 31,1870

Alfred PleasontonNew YorkJan . 3,1871 /Aug. 8,1871

John W . DouglassPennsylvaniaAug . 9,1871 /May 14,1875

Daniel 0 . PrattIndianaMay 15,1875/July 31,1876

Green B. Rau mIllinoisAug . 2,1876/Apr. 30,1883

Walter EvansKentuckyMay 21,1883/Mar. 19,1885

Joseph S. Mille rWest Virgini aMar. 20,1885/Mar . 20,1889

John W. Maso nWest Virgini aMar. 21,1889/Apr. 18,1893

Joseph S. Mille rWest VirginiaApr. 19,1893/Nov . 26,1896

W. St . John Forma nIllinoisNov . 27,1896/Dec . 31, 1897

Nathan B. Scot tWest VirginiaJan . 1, 1898/ Feb . 28,1899

George W. Wilso nOhioMar. 1, 1899/Nov. 27,1900

John W. YerkesKentuckyDec . 20,1900/Apt . 30,1907

John G . Caper sSouth Carolin aJune 5,1907/Aug. 31,1909

Royal E. Cabel lVirginiaSept . 1, 1909/Apr. 27,1913

William H. OsbornNorth CarolinaApr . 28, 1913/Sept . 25, 1917

Daniel C . Rope rSouth Carolin aSept. 26,1917/Mar. 31,1920

William M . WilliamsAlabam aApr. 1, 1920/Apr . 11, 1921

David H . Blai rNorth CarolinaMay 27,1921 /May 31,1929

Robert H. LucasKentuckyJune 1, 1929/Aug. 15,1930

David BurnetOhioAug . 20,1930/ May 15,1933

Guy T. Heleverin gKansasJune 6,1933/Oct. Il, 1943

Robert E . HanneganMissouriOct . 9, 1943/Jan . 22,1944

Joseph D . Nunan, Jr.New YorkMar . 1, 1944/June 30,1947

George J . SchoenemanRhode IslandJuly 1, 1947/July 31,1951

John B . DunlapTexasAug . 1, 1951 /Nov . 18,1952

T. Coleman AndrewsVirgini aFeb . 4,1953/Oct. 31,1955

Russell C. HarringtonRhode Islan dDec. 5,1955/Sept. 30,1958

Dana Latha mCaliforniaNov . 5,1958/Jan . 20,1961

Mortimer M. CaplinVirgini aFeb . 7,1961 /July 10, 1964

Sheldon S. CohenMarylan dJan.25,1965/Jan .20,1969

Randolph W. ThrowerGeorgi aApr. 1, 1969/June 22,1971

Johnnie M . WaltersSouth CarolinaAug . 6,1971

Appendix

TaxpayerPublication s

Tax FormsActivit y

Supreme CourtDecision s

Actions ofLower Courts

Tax LegislationEnacte d

Tax LegislationPendin g

88 89

1!;

Publication Number/Titl e

90

17Your Federal Income Tax .Price 75 0

54Tax Guide for U .S . CitizensAbroad

76Law and Regulations relating tothe treatment of Annuities forIncome Tax purposes . Price 450(revised 5-69 )

225Farmer's Tax Guide

33 4Tax Guide for Small Business .Price 750

337Law and Regulations Relating toEmployee Pension, Annuity,Profit-Sharing, Stock Bonus, andBond Purchase Plans includingPlans for Selt-Employed Individ-uals . Price 700 (revised 7-68)

349 .Federal Use Tax on Trucks,Truck-Tractors and Buses

377Pension Trust Procedures andGuides for Qualification UnderSection 401 (a) and 405(a) of theInternal Revenue Code of 1954 .Price 350

378Federal Fuel Tax Credit or Refundfor Nonhighway and Transit Users

448A Guide to Federal Estate andGift Taxation . Price 500(revised 7-71 )

463Travel, Entertainment and GiftExpenses

501YourExemptions and Exemptionsfor Dependents

502Deduction for Medical andDental Expense s

503Child Care and DisabledDependent Care

504Income Tax Deductions forAlimony Payments

505Tax Withholding and Declarationof Estimated Ta x

506Computing Your Tax Under theIncome Averaging Metho d

508Tax Information on EducationalExpense s

509Tax Calendar and Check ListforI972

5110Information on Excise Taxes for1972

511Sales and Other Dispositions ofDepreciable Propert y

512Credit Sales by Dealers inPersonal Property

513Tax Information for Visitors to theUnited States

514Foreign Tax Credit for U .S .Citizens and Resident Aliens

SI SWithholding of Tax onNonresident Aliens andForeign Corporations

SI BTax Information for U.S .Government Civilian EmployeesStationed Abroa d

517Social Security forCiergymenand Religious Workers

SIBForeign Scholars and Educationaland Cultural Exchange Visitors

51 9United States Tax Guide forAlien s

S20Tax Information for AmericanScholars in the U.S . and Abroad

521Tax Information on MovingExpenses

522Adjustments to Income forSick Pay

523Tax Information on SellingYour Hom e

524Retirement Income andRetirement Income Credit

525Taxable Income and NontaxableIncom e

526Income Tax Deduction forContributions

527Rental Income and RoyaltyIncom e

528Information on Filing Your TaxReturn

529Other Miscellaneous Deductions

530Tax Information on Deductionsfor Homeowners

531Reporting Your Tips for FederalTax Purposes

532Tax Information for Studentsand Parents

533Information on Self-EmploymentTax

534Depreciation, Amortization, andDepletion (Includes Class LifeAsset Depreciation RangeSystem )

535Tax Information on BusinessExpense s

536Losses From Operating aBusines s

537Installment and Deferred-Payment Sale s

538Tax Information on AccountingPeriods and Method s

539Withholding Taxes From YourEmployee's Wages

540Tax Information on Repairs,Replacements, and Improvements

54 1Tax Information on PartnershipIncome and Losses

542Corporations and the FederalIncome Tax

543Tax Information on the Sale ofa Business

544Sales and Exchanges of Assets

545Income Tax Deduction forInterest Expens e

546Income Tax Deduction for Taxes

547Tax Information on DisastersCasualty Losses, and Thefts

54 8Tax Information on Deductionfor Bad Debt s

549Condemnations of PrivateProperty for Public Use

55 0Tax Information on InvestmentIncome and Expenses

551Tax Information on cost orOther Basis of Assets

552Recordkeeping Requirementsand a Guide to Tax Publications

553Highlights of 1971 Changes inthe Tax Law

554Tax Benefits for Older Americans

555Community Property and theFederal Income Ta x

556Audit of Returns, Appeal Rightsand Claims for Refun d

557How to Apply for Recognition ofExemption for an Organization

558Tax Information for Sponsors ofContests and Sporting Events

55 9Federal Tax Guide for Survivors,Executors, and Administrators

56 0Retirement Plans for Self-Employed Individual s

561Valuation of Donated Property

56 3Tax Return Filing Requirementsfor U .S. Citizens Abroad

564Tax Information on Mutual FundDistributions

565Tax Information on the InterestEqualization Tax

566Questions and Answers onRetirement Plans for theSelf-Employed

567Tax Advice on Civil ServiceDisability Retirement Payments

568Federal Tax Information for CivilService Retirees

569Questions Asked by U .S.Taxpayers Abroad

570Tax Guide for U .S . CitizensEmployed in U .S. Possessions

57 1Tax-Sheltered Annuity Plans forEmployees of Public Schoolsand Certain Tax-ExemptOrganization s

572Tax Information on InvestmentCredit

573Interest Equalization TaxHighlight s

575Tax Information on Pensions andAnnuitie s

576Tax Information on United StatesSavings Bonds

9 1

k_ -

I

11

ill

577Amortization of Pollution ControlFacilities

579Informacl6n sobre la Preparc16ny Presentaci6n de Is Declarci6ndel Impuesto Federal sobfeIngreso Individua l

721Comprehensive Tax Guide to U.S .Civil Service Retirement Benefits.Price 700

778Guides for Qualification ofPension, Profit-Sharing, andStock Bonus Plans . Price 350

92

Tax Forms ActivityThe following new formswere issued ;

Number/Title990-Schedule AOrganizations Exempt Under501(c)(3) SupplementaryInformation .

990-Schedule BExempt Private Foundations(Defined in Section 509(a) andExempt Under Section 501 (a)Determination of Liability forChapter 42 Taxes .

1041-Schedule PFDetermination of Liability forChapter 42 Tax Trusts Describedin Section 4947(a )

1099-DIVU .S . Information Return forRecipients of Dividends andDistribution s

1099-INTU .S . Information Return forRecipients of Interest Income

1099-MISCU .S . Information Return forRecipients of MiscellaneousIncome

4782Employee Moving ExpenseInformation

4789Currency Transaction Report

479 0Report of InternationalTransportation of Currency orMonetary Instruments

4797Supplemental Schedule of Gainsand Losses

4831Rental Income

4832Asset Depreciation Range

4835Farm Rental Income (crop share)and Expenses

4848Annual Employer's Return forEmployees' Pension or Profit-Sharing Plan

4848-Schodule AAnnual Status Report of anEmployees' Pension or Profit-Sharing Plan

4849Financial Statement ofEmployees' Pension or Profit-Sharing Fund or FiduciaryAccount

4868Application for AutomaticExtension of Time to File U .S.Individual Income Tax Retur n

4876Election to be Treated as a DISC

4908Declaration of a Candidate forPublic Office Receiving PoliticalContributions Qualifying forCredit or Deductio n

4909Declaration of CampaignCommittee Receiving PoliticalContributions Qualifying forCredit or Deduction .

The following forms wereeliminated :W-"chedule AAdditional WithholdingAllowances Based onItemized Deductions

1001Ownership Certificate

1001-AOwnership Certificate-Austria

1001-BExemption or Reduced RateCertificate-Belgium

11001A-BExemption or Reduced RateCertificate-Belgium

1001-COwnership Certificate-Canada

1001A-CExemption or Reduced RateCertificate-Canada

1001-DOwnership Certificate-Denmark

1001A-DExemption Certif! cate-Den mark

1001-FINOwnership Certificate-Finland

1001-GEROwnership Certificate--Germany

1001-FOwnership Certificate--France

1001-GOwnership Certificate-Greece

1001-IROwnership Certificate-[ reland

110011-iOwnership Certificate--Japan

1001A-JReduced Rate Certificate-Japan

1001-LOwnership Certificate-Luxembourg

1001-NOwnership Certificate-Netherland s

10OIA-NExemption Certificate-Netherlands

1001-N AOwnership Certificate-Netherlands Antilles

1001-NOOwnership Certificate--Norway

1001-SWE DOwnership Certificate-Sweden

1001-SOwnership Certificate-Switzerland

1001A-SExemption or Reduced RateCertificate-Switzerland

1001-UKOwnership Certificate-Malawi,Zambia, and Southern Rhodesia

1001-UK-2Ownership Certificate--UnitedKingdo m

1099U. S . Information Return

1099MU. S. Information Return forRegulated Investment CompanyDistributions

Stabilization FormsActivit yNumber/Titl e

S-7Alleged Violation Report

S-11 6 (Rev. 2-72)Application for Exemption orException

S-18Notice (of Appeal Rights)

S-21 (Rev. 4-72)Affidavit

S-29 (Rev. 2-72)Acknowledgement and ReferralPostcard

S-41Notice of Violation

S-53Noninstitutional (individual)Health Services ProvidersSupplemental Workshee t

S-55Subpoen a

S-70Lease Notification Addendum

Public Use PublicationsDistributedPublication Number/Title

S-2General information, EconomicStabilization ProgramS-3 (Rev. 3-72)Posting Requirements forRetailer sS-5Price and Wage Classificatio n

S-6Record Keeping for ESP

S-3001 (Rev.)Offices Providing EconomicStabilization Information

S-3004Information for Retailers andWholesalers

S-3007 (Rev. )Items Not Controlled by ESP

S-3008 (Rev. )Enforcement Provisions of ESP

S-3009IRS Stabilization RulingsDeterminations-AppealProcedure s

S-3010Posting Requirements forPrescription Druggists

S-3011 (Rev.)Legal Price Increases

S-301 2Construction Industry

S-3013Retroactive Pay

S-301 5Doctors and Dentists Flyer

S-301 6Wearing Apparel Price Controls

S-301 7Service Organizations

S-301 9Rent Guidelines

S-3020 (Rev .)How to Compute ProductivityGains

S-3021Price Controls on Retailers

93

S-3022Dividends and Interest

S-3023Price Controls on WearingAppare l

S-3024Violations of EconomicStabilization Records

S-3025Rent Controlled Housing

S-3026Rent Violations (ConsumerInformation Series)

S-302 9Executive and VariableCompensation

S-303 0Appeal Procedures, Policy Bodies

S-3031Restaurants and Carryouts(Consumer Information Series )

S-3033Term Limit Pricing

Supreme Court DecisionsCriminal Case sOn December 20, 1971, the Su-preme Court in United States v .Bass, 404 U .S . 336 (1971), in afive to two decision rejected theposition taken by the preponder-ance of the circuits which hadconsidered the issue and heldTitle VII of the Omnibus CrimeControl and Safe Streets Act of1968 (18 U .S .C . App . § 1202(a)(1))does not make It a crime for aconvicted felon merely to "pos-sess" a firearm . The court saidthat the statute requires the gov-ernment to allege and prove ineach case involving unlawful "re-ceipt", "possession", or "trans-portation" that such "receipt","possession", or "transportation"was "in commerce or affectingcommerce" . The court came tothis conclusion due to the am-biguity of the statute and the lackof conclusive legislative intentand resolved the ambiguity of thecriminal statute in favor of thenarrower construction taken bythe Second Circuit (United Statesv. Bass, 434 F. 2d 1269 (2nd Cir.1970)).

However, the court pointed outthat the nexus with interstatecommerce could be establishedin a number of ways saying "wenote only some of these . For ex-ample, a person possesses . . .in commerce or affecting com-merce if at the time of the of-fense the gun was moving inter-state or on an interstate facility,or if the possession affects com-merce . Significantly broader inreach, however, is the offense ofreceiving in commerce or affect-ing commerce, for we concludethat the Government meets itsburden here If it demonstratesthat the firearm received has pre-viously traveled in interstate com-merce" . However, presumably inthe case of a "receipt" chargethe person charged with the of-fense would have to be shown tohave received the firearm afterthe date of enactment of the law(June 19, 1968). Since almost allof the Title VII charges broughtprior to the Supreme Court's de-cision in Bass did not allege the

commerce element many casesare being reversed and re-manded . See United States v .Harp., 454 F. 2d 1161 (5th Cir .1972) ; United States v. Young,454 F . 2d 1168 (9th Cir . 1972) ;and United 9tates v . Harris, 456F . 2d 62 (8th Cir. 1972) .

On May 15, 1972 the SupremeCourt in United States v. Biswell,406 U .S . 311 (1972) 40 L W 4489,by an eight to one vote, up-held the conviction of a federallylicensed firearms dealer who re-luctantly permitted inspection ofhis locked firearms storeroomonly after being advised that suchinspection was authorized by 18U .S .C. 923(g) and being shown acopy of the law . The SupremeCourt reversed the decision ofthe Tenth Circuit (United Statesv. Biswell, 442 F . 2d 1189 (10thCir. 1971)) which had held thatBiswell did not "consent" to theentry of the locked storeroom,and that if the statute were con-strued as permitting entry withoutsuch "consent" that It violatedthe Fourth Amendment prohibi-tion against "Unreasonable"search and seizures . The Su-preme Court did not hold thatBiswelf gave "consent" but ratherthat there was on his part a "asubmission to lawful authority"rather than face a possible crim-inal prosecution (or administra-tive action with respect to hislicense) .

The court said "in the context ofa regulatory inspection system ofbusiness premises which is care-fully limited in time, place, andscope, the legality of the searchdepends not on consent but onthe authority of a valid statute."The court recognized as to fire-arms that "close scrutiny of thistraffic is undeniably of centralimportance in federal efforts toprevent violent crime and to as-sist the states in regulating thefirearms traffic within their bor-ders." The court said "large in-terests are at stake, and inspec-lion is a crucial part of the reg-ulatory scheme, since it assuresthat weapons are distributedthrough regular channels and ina traceable manner and makes

possible the prevention of salesto undesirable customers and thedetection of the origin of partic-ular firearms" . The court ex-plaiDed that in See v . City ofSeattle, 387 U .S . 541 (1967), theyhad no occasion to consider thereach of the Fourth Amendmentwith respect to various federalregulatory statutes .

The court distinguished ColonadeCatering Corp v . United States,397 U .S. 72 (1970), a retail liquordealer case where the statutoryauthority to enter and inspectwas similar to the statutory au-thority in Biswell, on the groundsthat there was no forcible entryin Biswell. In Colonade the courtsaid the statute had not author-ized forcible entry. The court saidas to federally licensed firearmsdealers "if the inspection is to beeffective and serve as a credibledeterrent, unannounced, evenfrequent, inspections are essen-tial . In this context, the prerequi-site of a warrant could easilyfrustrate inspection ; and If thenecessary flexibility as to time,scope and frequency is to bepreserved, the protections af-forded by a warrant would benegligible." The court also notedthat "when a dealer chooses toengage in this pervasively regu-lated business and to accept afederal license, he does so withthe knowledge that his businessrecords, firearms and ammunitionwill be subject to effective in-spection ." The court further heldthat the seizure of the two con-traband National Firearms Actweapons discovered in thecourse of the inspection was notunreasonable under the FourthAmendment.

In Kastigar v . United States, 406U .S, 441 (1972), the SupremeCourt .upheld the constitutionalityof those portions of the Organ-ized Crime Control Act of 1970,18 U .S.C. § 6002, empowering theFederal Government to compeltestimony from a witness involv-ing the Fifth Amendment by con-ferring immunity from use of thecompelled testimony or use ofevidence derived therefrom crim-inal proceedings are subse-quently instituted against such awitness, the Court further held,the Government has the burdenof providing affirmatively that evi-dence proposed to be used isderived from a legitimate sourcewholly independent of the com-pelled testimony.

The appellees in United States v .Marion 404 U.S, 307 (1971),claime~ that the Government hadknown of the crimes with whichthey were charged, the circum-stances of the crimes, and ap-pellees' identities for over threeyears before they were indictedand at their trial successfullymoved to dismiss on the groundthat the delay in returning the in-dictment deprived them of theirright to a-speedy trial as securedby the Sixth Amendment . The Su-preme Court reversed the trialcourt's dismissal and held that. . . the Sixth Amendmentspeedy trial provision has no ap-plication until the putative de-dendant in some way becomesan 'accused' . . ." The Court de-fined "accused," for purposes ofthe Sixth Amendment, as oneagainst whom there is either aformal indictment or an informa-tiOn, or one who is actually re-strained by being arrested orotherwise held to answer a crim-inal charge . However, the Courtstated that "the Due ProcessClause of the Fifth Amendmentwould require dismissal of theindictment If it were shown attrial that the pre-indictment de-lay . . . caused substantial preju-dice to (the accused's) rights toa fair trial and that the delay wasan intentional device to gaintactical advantage over the ac-cused ."

In Barker v . Wingo, 407 U .S . 514(1972), the Court further clarifiedthe right to a speedy trial byholding that alleged denials ofthe right can only be determinedby an ad hoc balancing testrather than by any inflexible timestandard . In striking the balance,the Court stated, the factors to beweighed include the length ofdelay between arrest and trial,justification for the delay, the de-fendant's assertion of or failureto assert his right to speedy trial,and prejudice to the defendantcaused by oppressive pretrialincarceration, impairment of hisdefense, and pretrial anxiety andobloquy .

94 95

Supreme CourtCivil Case sIn Commissioner v. First Secu-rity Bank of Utah, 405 U .S . 394(1972), aff'g 436 F .2d 1192 (10thCir. 1971), the Supreme Courtdisapproved an allocation undersection 482 that would have con-stituted income received in vio-lation of Federal banking laws .The Court, disagreeing with theCommissioner, held that insur-ance commission income was notpartially allocable under section482 to bank subsidiaries of aholding company that also con-trolled a management company,an insurance agency, and an in-surance company where (pursu-ant to 12 U .S.C.A. §92) nationalbanks could not legally receiveany proceeds from selling insur-ance. Here the banks offered toarrange credit life, health, andaccident insurance for borrowerswho were reinsured through theinsurance company subsidiary .All reinsurance premiums werereported in the income of the In-surance company which was sub-ject to a lower tax rate than theother corporations . The Courtrefused to apply the assignmentof income doctrine to the banksand stated that the "completepower" to allocate referred to inTrees . Reg . 1 .482-1(b)(1) "hardlyincludes the power to force asubsidiary to violate the law."There were three dissents .

In Colt v. Green, 404 U.S . 997,(1971) the Supreme Court af-firmed without opinion in Decem-ber 1971, the June 1971 decisionin Green v . Connally, 330 F .Supp . 1150 (D . D .C . 1971) . In viewof the constitutional issue in thecomplaint filed in May 1969, athree-judge district court wasconvened . The court enjoined therecognition of any private schoolin Mississippi as tax exempt un-der section 501(e)(3) of the In-ternal Revenue Code unless theschool has a racially nondis-criminatory admissions policy.The Service announced in July1970, that it can no longer legallyjustify allowing tax-exempt statusto private schools which practiceracial discrimination nor can it

treat gifts to such schools ascharitable deductions for incometax purposes . The Servicethought the June 1971 injunctionwas unnecessary but did not ap-peal . Direct appeal to the Su-preme Court was by intervenersrepresenting parents and chil-dren who support or attend Mis-sissippi private schools whoseenrollment was restricted towhite students .

On November 9, 1971, the Su-preme Court denied without opin-ion the motion for leave to file abill of complaint in Alabama v .Connally, 404 U .S. 933 (1971) .Alabama, acting through its Gov-ernor, claimed original jurisdic-tion of the Court and sought aninjunction restraining the de-fendants from assessing and col-lecting federal income taxes fromAlabama citizens and from ex-empting income or religious,charitable, educational and otherorganizations described in sec-tion 501(c)(3) of the Internal Rev-enue Code . The Government op-posed the Alabama motion citingFlorida v. Mellon, 273 U.S . 12(1927), which held that a State,as parens patriae, cannot repre-sent its citizens in a suit to pro-tect them from unconstitutionalinequa!ities alleged to resultfrom a federal tax law .

On February 23, 1972, the Su-preme Court reversed an opinionof the United States Court ofAppeal a for the Fifth Circuit andheld for the Government in animportant case involving baddebt deductions . United States v .Generes, 405 U .S . 93 (1972) . Thequestion resolved was whetherthe "significant", rather than the"dominant", motivation test isto be applied in determiningwhether losses resulting from ataxpayer's advances or paymentson guarantees of loans to a cor-poration in which he is a share-holder-employee are "proximate-ly related" to the taxpayer'strade or business. The problemarose where an individual tax-payer bore a dual relationship--as shareholder and also as am-ployee-to the corporationwhose default gave rise to the

bad debt loss . The SupremeCourt accepted the Government'sposition that business bad debttreatment is appropriate onlywhere protection of the salariedposition is the dominant motivat-ing force and held that where ataxpayer shows only that he wassignificantly motivated by a de-sire to protect his salaried posi-tion the requisite proximate rela-tionship does not exist . The hold-ing prevents the allowance of abusiness bad debt deductionwhere the principal or dominantreason for creating the debt is anonbusiness reason .

On March 6, 1972, the SupremeCourt again reversed an opinionof the United States Court of Ap-peals for the Fifth Circuit andheld for the Government in UnitedStates v . Mississippi ChemicalCorp ., 405 U.S . 298 (1972) . Theissue was whether amounts paidby farmers' cooperatives for pur-chases of Class C stock of aregional bank for cooperatives,made in connection with loanssecured from the bank, are non-deductible capital outlays ratherthan deductible interest ex-penses. The cooperatives wererequired by the Farm Credit Actof 1955 to make purchases of thestock in amounts constituting acertain percentage of the interestpaid to the bank on their loansfrom the bank . The taxpayerscontended that the stock had novalue and the amounts paid onthe purchase price representedmerely addJtonal borrowing costs .The Supreme Court recognizedthat the Class C stock had char-acteristics which rendered themarket for the shares virtuallynonexistent, but neverthelessheld that it had substantial valuederiving from attributes otherthan marketability. The Courtheld its value extended for morethan one taxable year, and that itwas a capital asset and its costwas nondeductible .

An adverse decision was ren-dered by the Supreme Court onJune 26, 1972, in United States v .Byrum,- U .S. - (1972), anestate tax case . The case in-volved shares of stock in three

corporations controlled by dece-dent, which shares had beentransferred before his death to anirrevocable trust for his children .He retained the right to vote theshares, to veto the sale of any ofthe shares, and to remove thetrustee at will . The issue waswhether the shares of stockwere includible in his grosses-tate under int. Rev. Code of 1954,§ 2036(a), because he retainedeither the right to designate thepersons who would enjoy the in-come from the property or theright to enjoy the property him-self . The Government's argu-ment, which was rejected by themajority of the court, was basedprimarily on the decedent's abil-ity to control the flow of corpo-rate dividends to the trustthrough the exercise of his re-tained voting control . JusticeWhite's dissenting opinion, joinedin by Justice Brennan and Jus-tice Blackmun, suggests that thedecision "will open a gaping holein the estate tax laws ."

Actions of Lower CourtsCivil Case sIn B. Forman Co ., Inc . v . Commis-sioner, 453 F .2d 1144 (2nd Cir .1972), the Second Circuit upheldthe Commissioner's allocation bfimputed Interest under section482 to two corporations each ofwhich owned 50 percent of athird corporation . The court heldthat "control" under section 482includes any type of control, di-rect or indirect, whether legallyenforceable, as it is the "realityof control which Is decisive, notits form or the mode of its ex-istence ." In approving the im-puted interest allocation, the Sec-ond Circuit criticized certain TaxCourt decisions relied upon bytaxpayer, including P.P .G. Indus-tries, Inc., 55 T .C . 928 (1970),noting that to the extent thosecases would require a differentresult they do not accord wi th"either economic reality, or withthe declared purpose of section482."

of atock of a spun-

ofilstcrolbruptoiontion to the sole share-holders of the parent corporationwas held to constitute a taxabledividend under section 355 wheretaxpayer'q purpose was to putstockholdings in a form facilitat-ing estate planning, there was anabsence of any direct benefit tothe business of the original com-pany, and the spin-off put sale-able assets in the hands of thetaxpayers the retention of whichwas not needed to continue thebusiness enterprise. While reaf-firming its holding in Lewis v.Commissioner, 176 F.2d 646 (1stCir. 1949), that a shareholder'spersonal motives could be con-sidered, the court held that a dis-tribution which had considerablepotential for use as a device fordistribution of earnings and prof-its should not quality for tax-freetreatment on the basis of per-sonal motives unless those mo-tives are germane to the continu-ation of the corporate business .The court found that the purposehere, giving other assets to tax-payer's daughters so as to ex-clude them from active manage-ment of the business, was not a

business purpose . Rafferty v .Commissioner, 452 F .2d 767 (1stCir. 1971) .

An important limitation on theright of insurance companies toachieve a wholly tax-free liquida-tion under section 337 wasspelled out in Buckeye UnionCasualty Co . v . Commissioner,450 F .2d 109 (6th Cir. 1971) . TheSixth Circuit held that the gainrealized by an insurance com-pany through retention of 35 per-cent of its unearned premiumreserves on the sale of their in-surance business through a re-insurance and assumption agree-ment was not subject to non-recognition under section 337because the amount did not re-sult from a sale or exchange butfrom elimination of the require-ment of maintaining reserves .The result, at least in the TaxCourt and the Sixth Circuit, isthat the "reinsuring" of its risksis now severly limited with re-spect to use as a liquidation toolby an insurance company .

In Labay v . Commissioner, 450F .2d 445 (5th Cir . 1971), the courtaffirmed the Tax Court by hold-ing that the new custodial spouseprovision of section 152(e), whichobliged the custodial spouse to"clearly establish" that he or sheprovided more support than thenon-custodial parent, requiredsuch proof only by a "clear pre-ponderance of the evidence" andnot the "clear and convincing"standard normally used in test-ing the Government's burden infraud cases .

In a case with significant effecton publicly-hold corporations,the Tax Court concluded as amatter of law that the accumu-lated earnings tax can apply to apublicly held corporation wherethe management is dominated bya single large shareholder or asmall group of large shareholderswho exercise effective controlover the dividend policy of thecompany or the company repre-sents itself to prospective or ex-isting shareholders as an invest .ment company with the avowedpolicy of accumulating its invest-

96 97

1!

ment income . Having found tax-payer not to be a "mere holdingcompany or investment com-pany," the Tax Court refused tofind taxpayer's accumulations un-reasonable and subject to theaccumulated ehmings tax provi-sions of sections 532(a) and533(a) for 1962 through 1965, butsustained the Commissioner'sdetermination for 1966 . In makingits determination for 1966, thecourt considered the marketvalue of taxpayer's liquid assets,i.e., its stock investments . Gol-conda Mining Corp ., 58 T.C . No .13(1972) .

After service of a summons by aspecial agent on the taxpayer'saccountant to secure the tax-payer's books and records, theaccountant, upon instruction ofthe taxpayer, delivered the boo aand records in his possession tthe taxpayer's attorney . The tax-payer intervened in the summonsenforcement action brought bythe Government and asserted asdefenses to compliance with thesummons that the summons wasissued for the improper purposeof conducting a criminal investi-gation and that the records wereencompassed within the taxpay-er's Fifth Amendment privilegeagainst self-incrimination . Thedistrict court ordered enforce-ment of the summons and theFourth Circuit affirmed, The courtof appeals held that if a civil pur-pose existed, as it concluded itdid, the summons is proper . Asto the privilege argument thecourt held that the books andrecords had voluntarily passedfrom the taxpayer's possessionand control and thus from the.'sphere of privilege surroundingher" for there was no account-ant

.-client privilege . The taxpayer

petitioned for writ of certiorarion January 10, 1972 which wasgranted on April 3, 1972 . UnitedStates v . Lillian Couch, 449 F.2d141 (4th Cir. 1971) .

98

In Clifford Irving, at al . v. ElliottGray, - F . Stipp . -, (S .D .N .Y . 1972), the Court determinedon June 15, 1972, that the pro-cedure employed by the Servicein terminating the taxpayers' tax-able year under section 6851,notifying them of that termina-tion, and assessing tax liabilitiesunder section 6201 before thenormal due date for the 1971 in-come tax return was proper un-der the facts and circumstancesof the case . The plaintiffs haddemanded injunctive rel let and asummary judgment. The Govern-ment moved to dismiss the com-plaint on the ground that main-tenance of the action was barredunder section 7421(a). The courtagreed and held that the plain-tiffs did not fall under the excep-tions to section 7421(a), citingEnochs v. Williams Packing andNavigation Co ., 370 U .S. 1 (1962) .

In United States v . First NationalBank of Arizona, 458 F .2d 513(9th Cir . 1972), the Ninth Circuitaffirmed per curiam a districtcourt order granting the Govern-ment's motion for summary judg-ment in this action for failure tohonor a levy. After being servedwith a notice of levy to reach thetaxpayer's bank account, thebank set off the account againsta debt owed it by the taxpayer,evidenced by a promissory noteexeouted after the tax assess-ments were made . Prior to theassessments, however, the tax-payer had signed a signaturecard stating that the accountshould be governed by the regu-lations of the bank, which pro-vided that the bank may at anytime set off against funds held inany account all debts owed to thebank, whether matured or un-matured, and the promissory notecontained a similar set-off provi-sion . Notice of tax lien was notfiled until after the date of levyand set-off .

The Government contended onappeal that the case was con-trolled by the court's previousdecision in Bank of Nevada v.United States, 251 F.2d 820 (9thCir . 1957), and that the bank'sright to set-off does not qualityas a security interest under In-ternal Revenue Code of 1954,section 6323 . In its opinion, theNinth Circuit stated only thatBank of Nevada requires affirm-ance .

In Mike Scaraflotti v. Shea, 456F .2d 1052 (10th Cir . 1972), theTenth Circuit Court of Appealsaffirmed the district court's orderdismissing a mandamus actionbrought by taxpayer . The prayerfor relief was that the court issuean order in the nature of man-damus ordering the special agentto give the taxpayer or his at-torney advance notice of any re-quests for information from thirdparties concerning his tax inves-tigation of the taxpayer.

The Tenth Circuit held that be.fore mandamus will issue, theduty of the officer involved mustbe found to be ministerial, plainlydefined and peremptory . Thecourt found no clear duty to givenotice . The statutes authorizingthe use and enforcement of asummons, including 7602 of the1954 Code, do not require Serv-ice agents to give notice to ataxpayer that he intends to talkto a third party about any taxmatter relating to the taxpayer .

The court did not acecpt plain-tiff's argument that Reisman v.Caplin, 375 U .S. 440 (1964), byimplication requires notice to begiven before any request or inter-view of a third party, relying in-stead on In re Cole, 342 F .2d 5(2nd Cir. 1965) which rejectedsuch an argument .

Tax Legislation Enacte dThe Revenue Act of 1971 is themost important tax law enactedduring the year. The provisionsof Title I adopted a job develop-ment credit repealed in 1969, andcodified the asset depreciationrules (ADR) announced by theTreasury Department in January1971 .

Title If of the Act dealt with per-sonal income tax provisions. Themost significant changes involvedare an increase in the personalexemption and the standard de-duction, and the allowance ofcertain child care expenses . .

Title III of the Act provided struc-tural improvements to the Code .It included amendments such asamortization of certain expendi-tures for on-the-job training andfor child care centers .

Title IV of the Act repealed theFederal excise tax on automo-biles and light-cluty-trucks .

Title V of the Act enacted taxincentives to spur exports bydeferring the export income ofdomestic international sales cor-porations (DISC's) .

Title VI of the Act provided aspecial tax credit for employingwelfare recipients and made anumber of improvements in theexisting Work Incentive Program(WIN) for welfare recipients.

Title VII of the Act dealt with acredit or a deduction on an in-dividual's tax return for contrl-butibris to candidates for publicoffice .

Title Vill of the Act provided pub-lic financing as an alternativeway of financing the

general

election campaigns of presiden-tial and vice presidential candi-dates.

Congress enacted a number ofother public laws relating to taxmatters, the most important ofwhich are listed and summarizedbelow.

Public Law 92-138, enacted Oc-tober 14, 1971, and known as"Sugar Act Amendments of

1971," amends and extends theprovisions of the Sugar Act of1948.

Public Law 92-181, enacted De-cember 10, 1971, and known asthe "Farm Credit Act of 1971",provides for (1) the farmer-ownedcooperative system of makingcredit available to farmers andranchers and their cooperatives,for rural residences, and to asso-ciations and other entities uponwhich farming operations are de-pendent, (2) an adequate andflexible flow of money into ruralareas, and (3) modernizing andconsolidating existing needs.

Public Law 92-203, enacted De-cember 18, 1971, and known asthe "Alaska Native Land ClaimsSettlement Act", provides for set-tlement of certain land claims ofAlaska Natives .

Public Law 92-279, enacted April26, 1972, provides complete ex-clusion from income for com-pensation paid to members ofU .S. Armed Forces and civiliangovernmental employees whilein a "missing status" during theVietnam conflict .

Tax Legislation PendingAmong the tax bills awaiting ac-tion by Congress at the end ofthe year are the following :

H .R . 25, to simplify the InternalRevenue Code of 1954 by repeal-ing obsolete and rarely used pro-visions .

H . R . 424, to provide an incometax deduction, in the case of dis-abled individuals, for transporla-tion expenses to and from workand to provide an extra exemp-tion for a taxpayer or spouse whois disabled.

H . R . 1467, to include nationals ofthe United States within themeaning of "dependent" for taxpurposes .

H . R. 6640, to provide rules forthe application of Secs . 269 and1551 of the Internal RevenueCode of 1954 to any corporationorganized before Janaury 1, 1970,as part of a business expansionprogram to engage in a separatemarketing location not previouslyserved by an affiliated company.

H . R . 7296, to permit a govern-mental unit issuing industrial de-velopment bonds to elect to have

'110 million limit apply to anissue .

H.R. 10264, to permit an electionby a foreign banking business inU .S . to treat U .S . source interestincome as effectively connectedincome .

H .R . 10335, to permit periodic re-tirement payments made to re-tired or disabled partner to beexcluded for self-employment taxpurposes .

H.R. 10646, to amend Subpart Fprovisions to eliminate from theconcept of U.S . property certaindebt obligations acquired by con-trolled foreign corporations en-gaged in the banking business.

H .R . 11124, to amend Sec . 103 of-the Internal Revenue Code of1954, relating to interest on stateand local governmental obliga-tions, to increase the exemptionfor small issues .

H,R

*11184, to allow an income

tax deduction for additions to anaccount for accrued vacation payearned by employees.

N ,R , 11197, to reduce minimum

investment return requirementsfor private foundations .

H .R . 11200, to relax exemptionrequirements for social and mem-bership clubs.

H .R . 12272, to establish minimumeligibility and vesting standardsfor retirement plans and allowdeductions to individuals for re-tirement plan contributions .

99

H.R. 14370, to establish a "pig-gyback" system whereby the In-ternal Revenue Service wouldtake over the collection and ad-ministration of state incometaxes .

H .R . 14628, to provide for the co-ordination of United States andGuam individual income taxes .

H .R . 15230, to provide for an or-derly and systematic review ofvirtually all provisions of the In-ternal Revenue Code of 1954giving any special exclusion ordeduction or special tax rate toany particular type of group orcategory of income .

Collections, Refunds,and Returns Hed

1 . nternal revenue collectionsby source and by internalrevenue regions, districts,States, and other areas/ 10 2

2. Internal revenue collectionsby sources and quarters/109

3 . Internal revenue collectionsby sources, fiscal years 1971-72/11 0

4 . Internal revenue collectionsby principal sources, fiscalyears 19,10-1972/ 11 2

5 . Internal revenue refunds in-cluding interest/ 11 4

6 . Internal revenue refunds issued by regions, districts,States and other areas/ 11 5

7 . Number of returns filed, byinternal revenue regions, dis-tricts, States,other areas/ 11 6

8. Internal revenue collections,cost, employees, and U .S .population, 1942 through1972/11 7

Stamp Taxe s9. Number of occupational tax

stamps issued, by class of taxand by internal revenue re-gions, districts, States/ 11 8

Examination of Tax Returns10 . Number of returns examine d

by class of tax and by internalrevenue regions, districts,and other areas/ 121

11 . Additional tax and penaltiesrecommended after audit ex-amination by class of tax, andby internal revenue regions,districts, and other areas/ 12 2

Cases Receiving AppellateConsideration or in LitigationAppellate Division12. Receipt and disposition of

cases not before the TaxCourtY 12 3

13. Receipt and disposition of in-come, estate, and gift taxcases petitioned to the TaxCourt (docketed cases)/ 124

Office of the Chief Counsel14 . Processing of income, estate,

and gift tax cases in the TaxCourt/ 1 24

15 . Receipt and disposal of TaxCourt cases in courts of ap-peals and Supreme Court/124

16 . Receipt and disposal of re-fund suits filed by taxpayersin Federal Courts/ 125

17. Decisions of courts of appealsand Supreme Court in Civiltax cases/1 2 5

18. Receipt and disposal of col-lections, injunction, sum-mons, erroneous refund, anddisclosure cases/12 5

19. Receipt and disposal of in-solvency and debtor proceed-ings/125

20 . Receipt and disposal of mis-cellaneous court cases, liencases not in court, noncourtgeneral litigation cases andappealcases/12 6

21 . Caseload report/126

Alcohol and Tobacco Taxes22. Establishments qualified to

engage in production, distribution, storage or use of alco-hol, alcoholic liquors/126

23. Establishments qualified toengage in the production orexportation of tobacco prod-ucts and cigarette papers andtubes/12 6

24 . Permits relating to distilledspirits under chapter 51, IRCode/ 12 7

25 . Permits for operations relat-Ing to alcoholic beveragesunder the Federal AlcoholAdministration Act/ 127

26 . Permits relating to tobaccounder chapter 52, IR Code/

27 . Label activity Federal AlcoholAdministration Act/ 1? 7

28 . Internal revenue tax on man-ufactured products fromPuerto Rico/ 128

Cost of Administratio n29. Obligations incurred by the

Internal Revenue Service,112930. Obligations incurred by the

Internal Revenue Service, byappropriation, activity/ 130

31 . Quantity and cost statistic sfor printing/130

STATISTICALTABLES

100 1 101

ji,, Um,xamd, I dollar . . See cable 3, P. 110 for tax rates add further breakdotim of hatima I totals by sour-)

Internal relenue regions. districts, Stated'I odmickind imccon, add employment earn

and other areas

(States 101mmuled single districts indicated i nby

TrAslintauslraven acc

d11-th"

Corporatio n

mc is'

11,01,11,net withheld

Income ta

xwithheld add

'U".niondlicy-1

FE,an 1hine ; totals for other States shown at hot .

d

tibl.)

ThisI and self-em-

children IQ=Idrddy retirement m.n .i.c.

tax .. in... anic

as

. .

(2) (3) (4) (5) (6) (7)

Dallas St""' """~ . .. . . . . . -------

M .855,737 34 .925 .546 152 .593 .18 7_ 27.710,985_ 122,785 .357 1 .072,77611 10!40

North-Atheitic ----------- ----- -Aftedy go Sem ( ) t

43 591 .5391 9

67'1 ." 1

4 .903,825 26 100 241 54 954___ _ -

75311'

._-

4 ~ c be -) ------.guihi Maine)

2 24' :'526 53.2

171 "' :.'34

194 .705: :71603 27 4 :068

:1. 502------ ----- --------- -

Boston, ~ . .. . . . . . . . .broadl .

5

, 896:T

12 .JS4893,549

432 .2684 .505 .621

103 .57 8

17 " 1T

32D .8593 .670.071

4 .7066 .515

3

3

1 :04 5

36 9y . . . . . (c)U0 Had. (Sea (c) below)

.,226 4310063 6

5'

414 : 113 1:G61 :18 7

it :.135 2.545.643 12 .219 22 .1 90. . .. . . . . .. . . - ~ ------ -

Sul Ington .. . (Vermont)

,.247 638

, 1 56 "27 4

84 020 447 :345 2~217 .313 219 1 1 1 4

'. . . . . . . . . . . . . .

. .4 ... . ..,Illrd ---- ,Gmddch, ,t,wAl h r

.4 .37 .21 17

, 6 5725 .381

205:4913.150 D45

11 579

604,912152 .320

2 .522 .66235034

~ :~.2.,0lic e im r)

'a'- -P.,I ..o . (No. hamr .fr~'

024 .91 9

50

5 .910 .266

"."T 1 703991 .,

212. 141 921

26,635 1 2 .S0 7p d)

Pmvdd,dc . ' :_ : : : ::~ (Rhode Island)8,739

977 260

59 .567 D

113:~4:

86 9953 :23 265 3 :978

2_ _

Mid

c R'

.30~766.764

161 .2394 .53D .736

721 .62822.915,153

13 .51213 .850 .3117

602,46018 .553 .711

24356 962

5,632147 125 835 .21 7

7_ 524 111 1 1 1 7 . 1 711.379 3 .1125,31full 11 5 :431

19 ..40,-------- -

Phil ad. to

h, .S . 1 . .75 .tcl s

7 1 11 121

T :~7517

,

977 311

:6 , .I

. .5 2 :1011, 11: 734

71 :454 .203

~198 39

P bh (See (0 be[Z : ::'

4 : 7 79 :067

.

594

3

1 54

1

9 52 2 511 221

al 686 .2293 l69 9

.7 3

: 82R

t

Richcom dVid - ------ ------ .321 ,4DO 81 211 42 2:3

.466

89

] : : 1

5719

559

14,01)51 .152

28. 11 14 7

od

. u

s

So , Mo

.Delaware) . . . . . . . . . . . . 294 .533

19 434

098

515,616 717 .548:

1 09 072 603,4179

01:-

A U. h L

.

3 456 ::

954

2

.

5851 :00533 468

T979 :2 5% '5294'

3 .391 :92 5495 026

10,434,4582 08D 933

59 .7122 543

ID3,41 1I Efifir inghtem . . . .... . (Alabama). . ----------- -C .I ..b . th

1,724 .392 22 S 312 1 .332''

294 .538. ,

1 .028,334.

91106

.0 ,

10 .378

.. .. . .. . .. . . (Sou Carolina) . . . . . . . .Glam 11 j

1,214 .932IT 5 : .1 ~

1 7 :563 203 .208 775,11H 127 8 3 69i --- tMor. Cdr,,i~ ha)_Jacksid.

is 1.143AI2760 74

746 .40 1106 115

2,569,343112

'

498 918

'

2 .046.375 1,407 22 .64 3. .

J .ckdi . .. . ... .. (Florida) . . . . : : :~- 5 194 73100 :7 166

'4 D

: 426 95

1

121 2 OOR5

7941

4 '17 :171

. .. . ..C .

-Nashville_

tr,I

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

-:, .

2:3

49 42 3

3 99

61,813

.

1 .064 023

. 1440 .728

2 . 8 2 08

1'406 8"

I

13 . 36

2 22D

25..14 .271_

Cimcin nt? .. . .. . .. . . . . .. . . . . . . . . . .. ::: :::low(San (d~ be ~4, 6,64 9

4 17 92 8

I

6 .7% 561Is14 1 39

23:224 :992

I . . . . .

3,401 .046562,995

:19 594 23 52 :502 849

: 8go 5D

211

jef .get

23'7'

_ : : : _ : _ : : : bet Sea it me : .. . _ ::l

D

7 :963 .204 1 111 11 1 1~023,410 14,1 .996

,5AL2,685

~28

., 131 :17.

. ic,itim,a

-----------lmd

13 .949 .874: ~ :7~ 2

3 71 1 Ol1 g

'

1 .11 .1 3 11 117 18.488 58 .775. . . (Indian .)------- -tLo,ill,111 K k ~ : : ' : 3'

: :al -75 .1,7112

:,~. :3 306 1 .668

1 ,ill-- . . . . . . ~ ho I ) ----- ~ -

W t i l. 'P`k '

834 12 58 32. 55 f,2 .11 350 304

I"

33, 31,396 1: 138es c .).. . . . . . . . .all1? g -------- -sbMidwest ittlit"

746 71212 111~ 11

111,1115III

114,111 119 171: 41D 91: I 57 3.91 7---------------_----------- -.hard (South Dakota)

267 f',,

:"

228 125

1 .111 713: 3,1 111 1 11, 334 .753 162 , 52. ... . . . .

Chicago

----

.

99 71

1

'

2.

422 14 1

2T ii28

1 471"1

6 7.392

1, 381 782

, 43.2D3

7 .903 309 11

119 21

1

.326

7 1 finDes Momes. . . .. . . . . W . 1 :37,

T :g.:2, 02 ., ., :1 :3

641, :76 094

:918 024 -536

7:996

Milis. is 'in

7,1 03 '1 :" 6 71''1

.7If 117 '43 1,

2071ould,.

" '

5 73

234 21 51

4

15

. 3

1 1

2 .7 131:9 455 .392 : 12,143 33 2Sit 19 31 9:. . . . . . . . . . . . .. . .

. . . . ------- _ . . .St. Louis . . . .. .:::::: ~Misw uri

,,

"132 ''

4 11388,

'

151~113. ..7(U 53

21,1 3600620 B 323197:0632 43 :3'17

5 .48 7

27 537St. Paul- ------ -S m fC:::: : ::: ~ ~mrt`m

3 .87f : 177 G4fL7 7G.~§1 111 371 211 1 86,1921 .,1115

.18 894

Sp 2h. S. )Imlmv) -------- -

th t R i2,411 .068 429 .773

f : .799

61 1 :551 T :215.665 3.057

:9 19 8

o .

was eg on -------------------_-- : :: : :: :

. ... .

21,"3:1 1 2 , 610 978 14,703,446 3 .368,732 11,1611,3111 90,343 n 920. a . .. . .. .

462 4515,870,914

:41 535

755 .350400.448

3 26.57392 .995

934 .3413D5 .16 3

2 .863,2611 4 632 2 2"24 333=noryl`~' '1T 1oW

183

.1 '13,620 14I .M5 53,238 37 .821

,3

.

1,1S e b.( ; .

D,nve, : : C l d4 .132 3

8:131 21 3 111 11

3111, 30 1,447,448 13 .922 5722 .7

o ora o) . . .. . .. . . .. . . .----- (Little Rock

"

2 .919 198

7" 131

.221 :7 3

114 771

: . :2 I S1 960

11 113"

' :72 .133 872

:9 .697

1 00_ - -

Me . Orleans ---- : : : : ~Lo .ixmr.~2S I

2 .00 . :.26, 7

1 94

01 .

597 .427

871 19375 .558

4 019 14

1,210,846

4

342

' 9

4 :5341 13Oklahoma City, . .- . .I

Wi1 .946,235 271.112 71 11 1~j 117 .715 1155,105 1 17

: 11 06ld . . ... . . . ___ (Kansas) -------------- -

West rn1 .403,573

1 9 .fl :,U0307 423 737,645 6U35

Ie ei . . . . . . . . . . . . . . -- ----- _ ._

A,"'.) ------- ------ -

Id ...

21 .087

55 7215 :8

B507 757

3 .170

17.603

12 273

21,355,191

192 : ' ' '

' ~246 782431 .542

16 .$78,15310 .07

89 73 9

2

14M509

S95et.. . . . .. Mo.". . ... .M lln

.311 1

2

.31, 391

44f 66 8

1 11

79 3

85193

358 .302I

3137

1

253

3. Z33

Honolulu w i) : : . . .Los Angel . . (Sea b~Io

:'32 583

10 111 122

765. I

S

,14 0

.535 16 1 GO . BN

:43? 544 2 1 42 5. ..... .. . n, : : : : :

Phoenix . . . . . ... . ... (A,uchal) : :: :

1 181 Ott

.

: 1,1136

If 1 .,111 :115478 3,

1,12~1 .21 124 is. 1 .11 :646730 323 .1

:30 86 740Portland .. ....::: :: : fl,e... ) . . . . . . . . . . . . . .

R :1 .189,682 '58 156 1 .351 .394 324,261 1,016 475 1,090 9,55 8an . --------- N-0) _ --- : : : : : : :

S ll L k i1%1 :111

418: 15 3,72 .026 86 794

1

1282 :

I '2 61 7:

a a e C ty_ ----- (Utah) --- ___ _I

71406 80.271 469 .616

:790 41 374 73 T f .003

:3 139that,*,:: : 1: 111:623 7V :131 6 .472 111 1 .164 .932

:5 .193 970 95 .90S 37 .8D 3

Ofti of interns ideal Opmr,tions .

52 28 024

B317,316

271 7g g3". .

:2

" so

.0 66S1 9416 .16

592,9531.1773"'S~7

.72627 7" .77 111.1141 se

Puerto Ric.-, . .. . ... .... . : : ::: --

308,809 705 194 Its 10,602 178 6 . . . . . . . . . . 5 297Olhv__ . . . --------- . . . . . . . .Undistributed :

528,507 39,153 464 .600 82 .351:

379 0% i7.317

Fecld~al tax deposits and 311 43 1 3 2 11 269 G84 733 83G..hdm~ub,ic .t`,dit .addI -- F redTransfer ed to Governor

u"M2 , "'

I86:9.

_-1 "1 '

~ .D3 :7

- ----- - --

~1 5:21.1_ UG., [ 1 16 _. _~5:1 __- ------ -- -

-10 .690-- ----

-Withheld taxes of Feden l l. :J 4 72 -

: :----- 4 .172 -

9

---- __. ...94

, 1 72--- --- -

Clearing .,count or Esc- t.es-ungto full Iand .0-An F.!,, md Italy . . . . . .. . .. ... .

I-61

I - ------------- ---

.

. . . . .

.

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

. . . ..

.

.

..

.

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

Totals to, state, hot he . . be, .

1.411111 19 :962 .545 .596 14 .741 5 7"a 17his. 15 410 775 ':9562,171 .065 973:04 :71'3 :333 '91 :1"118

: As J91 96

(C Me, Yti --------- 31 .107 :241 7 :0311:711 21 .857 .379 3 .145 .59914 22271 18DOING

I) Ohio-----_------- , 7 1 11 1 41 14 60 50~d 12.235 132 24 30 11 .912 .687 1,307,9 7

:5.5 1'. ,, 206

9653 1,413,7 7,95681.182

"MP,mdsyhv .d ... . . . . . . . 12,439 .788 1 .512,145 9 .524 :144 v(Ii Ifin., . . . . . . . . . . . - 10 .403 .295 1 .485,559 7XS~ 30 1 .749 .6 5 .310,716 18,454 47 .503900

102

areas-Continued

[In thousands Of dollars. See table 3, p. ODD for tax rates and further breakdown of national totals by imurces]

Alcoldol taxes

E

."Et"a" Stiller! Sidift textS

Intri-i-in . stricts, States and other total (SUMTo"'(States ed by single it brut, Estate tax Gift tax off .1.

a,x 're"I"O' is ~~hxpxrfml26, 30.hotels for other Statesindicated in parentheses domestic, ~ ch,1,U ~'cxd~.,,)Is. In.,

shown at bottom of table) 36~ 1,1,1rd Total affected 'he le d

bylost ..

.)(8) (9) (10) (11) (12) (13) (17)

United States, total --------------------- 5.126X2 16 .247 .036 5 .110.001 3 .7611,915 761,612 2,959 .725 27 .163 12 .11154 552

North4flactic Region ------------------------ 1 .23D .'54 911,040 1,1611:113 ;g-,.. 1-1" .497 271 .11139 Z .976 . .2fS 2 .576 21

41b.n, . --- (Sea (c) bal-) --------- 4 . .021Its 5

24 09 14%1 198 ---------

. .- 198 1

A .. . 1,2~ Ill 648. 2

: 7 1,370 1 : : : : :: :: : 2'7~ '31 (7833 IS 94 :17 68JI 17 4' 2

fission . M ss. is 62 9.739 318 .014181, "' 13.7" 3 3 3

H 2:390 4 . . .Brooklyn . . .. . . (Ser, (r) tb.lcmi~ --------- 1142 10 197.908 15 .01 Ll 479 331 2

(San (c) below 2S : 2641 52G 103 .532 38350 727 723 (1

ff1l; d 11, 92 336 16 64 225 215-in -------- 1 3 - -------thin ------ 'Ce-e~',~) . . . . . . . : .- 2 938 17'

... 39

Bd

G M 505 777Hart1 5 4'1 64 ".670 229 11 .660 W.82 788 406 1Rd 1 3'alludhatta--------- ISid'c' ""'i ------- ."d 2, : 17.063 33? . .. . . . . . . 2925 5 35

. . . . ....

Portserfori e His hi a) -------- 14 .676 .0624 . 85 10.333 Its

.. . . . . _ its

751

_ :_w mps

64Providence

. _:::hodir

Istand)- . 7 :469

IT

2,5 6 9

.555 2 .26to 3 .0 :1Mid-Atlantic Reg, n -----------------_-----: 1741 13, 7 114

11 .1121 210 :140 05,421"1 17 '558 67 OD3 237 .813 76 :051 157 .919 3 45760 371

Ballimmore----- 213,220 1 5 496 499 .362 2BI.261 178.506 3

:, 718

New .rf~ 1 5 666 1 104 .705 1,218 636154,132 8 696 .976 145 . 06Philadelphia- . (So, (e) be 155 $9.037 67 : 11,112 669 461

" 14 3S' :Z. 371 19.599Richumod- ~Ijrtj'n~.,Ub 1*

48. . .. ...P

itt"" h---- - So 7~J75' 4 .3R 182 065 27,1522 213 7" 31 1

21114 3 :141 31 71 1 41 --------- 1 582K1 7,, xi~7, IT

T------------- It UM.a, , 9 M . ., 95,248 42 .151

Sam

SO 2 as 2a 11 1

=Vml70,231 9,872 24~1:~331) 2:4 43 1L, ISAtlanta---- 21:130 6 211 ---

~Al.h.ni ------------- 35 .339 2 .565 09 650. . . . . . 56 1

113 2 SO 80. . .South Carolina) ------- 21 :

'Ill 450 341:2 27 . . .. .665 115 124 131 1Glmrsb . .

.. . . . . .(North Carolina) 91 2 2 3 . 1

.1 ?311.0 se. . . . . . . . . .. 1 580 362 12' :3 G 16i2lI 113 . 7~F __ -- :: D3 116.~32 9Julisonlille "clit"'? 241 172 1'5:'~"3 W)0 6 .380 '70

4To.. . ts.) 29.518 4"391 .71, 38

29' -jjj'.j)j* 1,295 .111 10 .315 1,6061 4. . . . . . . . . . ----- 53'1:'145 A :,31 ISIC317 1 .410.756

(i:7g' 211 30 213:577 182,957 . ... . . . . . 1871 .45C (it) 111:713 766 1.282 21 7

22 1 16 313 111 11 :~1,13 7951 :l7l 12 :348 1 15

C aVeladd. . --- (Sea (it) but .. .3.1 30 218 74.1 '14IG~ .3 48

: 1 :2 3 1 508Die'troit --------- '54 10 1 64 2% 641 2

1 31I ' a S, 879 456 3 360 146 338 :27 111 :111 1 3'`

3BI 683 7. 1 :%2126 1.2 :17 0Indil"Imall, --------

43' 11 04 214 81 701 591 6855to `VdUr

(Kentucky) ------------- 39~636 atParkersburg. (West Virginia) --- 20 .422 1 .024 3~021 2 .141,

u 2 ~11` 2,1" 14DT7,4 489,94 122 31, 354 12

1Midwest Region . .. . . ------ -------- 7142,105 48,803 2 .158,555 9123 6T

. . . . . .

Abortion. 7 762 15

1"u'

2

., :3"' 1'5 :" 803 :271 IB2 .2 ' 171.

384 304 1 .~,dd (b ~)b.lms) . . .. 33 S6 1.'4 305

. . . .

DraMe . . . Urw.),_ 51

.071 3, 7Z 349:797F,,Ra------------- (North Dakou) .: 4 2 Is ISOMilwaukee (W oconsin)---- 7' '7 : 332' 3~4`Ss 250 . 1"7 3 IDC12~34 jill 3 .141

11 14 7 .493 96 ------ --- % .. .. . ..Omaha . . . ------- (Nebraska 34 .937 1 .797 3 41 :

3 2 2 13 8li : T2, DiffMU~ ---- 25,794 1 T6,

I

St. Louis.- .

.79:1 39.53 13 "' 1

:37 HIT. . . . .

11 119 32,920 3,018 2M . . .. .,L x, , "no 7 1

:3'1 '32 1.. ~30 1

"18 567

`5"" 87 3211 147 ------- 2 5

So, "'in . . . (So

. b) belomi IT ' 291 7 "2 34 52 .710 1 32.693 3D 1.269 15

.-1 R .g. .. .- ------ ------------ -I " 3 If 3' .""74

25 79Alirmueritur- 10 :2-7 - :'3'17 8 . Is' ~.2-73~ 21,905741 3,D90 . . . . . . . . 220Austin ~Sal (1) be ow ---------- 170 .175 11,6730 1 - 10217 - 0382 57 .31 . . . . . . . . . . . . 136Cheyenne. W0UinU,dw_)__.: :_ : . . . :

6 :2W203 1 210 - ----- 75 4Dallas- .- : : :- : : : : : (1e, I be 118 13.06 371:253 54623 129 178 1'or 75.195 89 ... . . . . . . .. .

. ---- -- 46Cause, . _ Co ado) -------------- 31 "' 3 33 3Little Rock . . . . . ~A,k.dsws) . . .. . .

14 1 0 42 .588 25 . 52 16' j93- 14 .150 ------ 388 2No, 0 reams - Louisiana 53 .385 4.919 75,767 237 SSG

20 73 4Oki home City ----- (01, I.hord .) .. . - :,4 :1,71. 1 :~1,7~1 341 ~1 :T .Wj,'hHa (K .m.s) 1 3 96 459 34----------- ------ 15 :' -1 2 .112 2

Western Region . . --------------- -------- $71,746 54,827 676 .3"434 433

Iji 1

1 " D

o

I'63N

. .. .43

Archon .lo_ ---- 830 21 4 53 149 144

Do sm . . _.. . . .. .. . -h

7 .934 593 5. 2W 87 311 . ... .. . . . . . . .. 31(M

I . 'N ""' "4,722

1, :'0' 03 3alone . . . . . . . on ... 13 667 "1 1. . 4 .12 1 75

Honolulu. . . . . . .. 9 2 16 453a 172,433112 4 :0191 36.88Z9 76 .257 ISO 732. . . .

. 379.417 IS 421 34 .329 1.)LeeAngeles (S 131 7' 0 165 6... .

, :1 3Phoenix . . Admin .) --- 41 , ,.1

i . 159

Portland ------ (Drug.,) ----- 34~ 66 240 4 3 : '1 W36 11 . 07 8,287 1 .293 6.899 99N'it 71 1.587 15 .404 94 87 -------- ------ . . . . . .. . .. . . - -------.9 - 6it no-----_------ (Iva a) 102 '84 17 325 1 37 7

. . . i4i Iiii --Eilbi 6"It L,ke City. . . .- (Utah)------- 8 IS 8 394 409S (See 274 .474 .619 121 : 34 282 .495 32 .48S :h F

_ : --- 71 .033 5,093 63 .3 69:143 25 . .? 21 .141 3 .140 11 170,Sell, ----- 6 1 1 11 13 ` "M I

. . . . .. . .

e. . . . .. ---- 19.503 If I . 36 33 :001 9office of international Operati"' - --- : 64 93 29 3".16 : :: : : : : : : 91 999 17Puerto Rk 0_

. . . . . .. . . ... IN IN74

Oth . . . . . . . . . . ----- ------------- 17 .997 594 6 .162 ----------- - ------- - - ------ ---- . . . . . . . . . . . - ------

depository receims --- ----------- -- ------ 3 :72 ---------- I . .. . .. . . ... . . . . . . . .Unit sle't"ZI tax deposits andd 6

Gasoline "' ,I, & excess F I CA red it, I ----------- __ ---- ---- - ---- ---- . . . . . . . . . .

Tc.rx,mi ."drt .".,!c,rm,n1 of Guam --- ----- -: ::: ::: :: __: :: : : : : : :,i :

Withheld taxes of Federal unployann~ef,in fuel . . . . . . . . -

Cl...inglicro, of to, E .- ---and dfl-Av Force and Navy ------- . . . . . . I--------- 61 1

----------- ---------- I --------- ---

Total, In, state, net hrmn abus e

Calit,uni ------------ 651~111 31 :140 1,111,712 592 :146 396 371 73' 1924

3B.2 . 42,

at, 66D 127 3..-1820.3

"2 24417 1.136,086 139 3 2

1 IT

so'114 54

3"'2'

73'1

I 1 4

its Is If fit ITII :,fT 15754 367 997 .098 1177' .60.3 1, it, 1 1

.657 Is

It ~f 7- 1 7 1 _7 I os

i

12411 S3

d~ 0

:2"09 55 125"1

387 __2 :740 163! 1 If 'I

. . . . . . .

. Ito111

100Ohm_ I M 1. 89 17,1

234

:

703 1 7 ~ SOG21 .050 1 ~074 .265 1~71,517 1 IT24 .6175 1

.501 2 707 3.300 --- __ 39(1) 7... 09 836 2 5-------------- 288 .674 24 .792 1 .478 .340

78

37

2

7

2

41

2

3

2

103

Table I.-Internal revenue collections by sources and by internal revenue regions, districts, States, and otherareas-Continued

[in thousands of dollars, See table 3, p. 110 for tax rates and further breakdown of national total. by sau,cm )

Alcohol t-a-Confiread

Internal umenne, riamns, districts, States . and qlhll Wrels .-diii Is, u., Wes Beer taxesdareas. -cs inSt"Z ""' ing'. d i ' iia .,cluld in Far S,,t,s show nIT

bottom of table) 1,ported 1 0.uffe

itI l 'F Z~' o sTotal (T flect

e db y ,

ustinus) no.ax~i, - b r

Is x as 1~Total c I ~it

by Cost mast".%. Ia,W,

f18) (19) C10 f2l) (23) 124) (25 )

United States, total ------------------ - 181,223 17 .547 IGO . 50 3 .5 6 1 .167 .963 6 .539 1 .157 .745 3 .519

N .,Ih.At frantic Region-, ., ... .. ... . . . . 35 .07 6 8_.~n _26,541 264 135 .121 3 .351 131 .214 55Albany . . .. . . .... . . I so. (r) hftw)~ ------- - 556. . . . .

550 6 14 .136 --------- 14 .135 51Augusta a)'i'M . . - ____ o r- I

50

3030

Boston - M saw,

Brookly. .. . ....... . .

.

s" Z v`L

~ .499

, ?"

fAl 147

RE

27

S

12,625

0

5 7 5 '

IIA63

57 4'

to5

1 1Buffalo- - ~ . . . _. , .s b a ~ . .- 17 : 48 20 :50 7

:20 317 NoB.rheilt . . . . . .. 45 -- ----- ('f 4~ 7 . . . . .. . .. . .

WIWI ------- ormactN oManhattan a (c) below) . . . . . .. . .~Se

- "

1107 .617 !i 9

849

2 .359 .205

.

324 D

121PutsN w Hampshire) ------ -moUti : : : ::: : 5 --- ----- 4 1 16 .726 ----------- - 16 .696 3 1

Providence .,------ : : : (Rhode Island )field-Ateurtic N mr .,

_

I5,22I I

.- -111 11 .141

3250 fir~ 1"2 ----- -- 111

I781101703

I

40 5Baltimore . . . . . . . . . . . (~binji~n ~0 D,C .j2 , .I T :

.36 54 27 .089 381 26 . 653 50Newark . . . (N w I ,,aT IS' 1 1

11 11,111 11 13 3 1, : aPhlad

b' :Io' *Pittsburgh --- ~~rc w~ : : : :_,1 :617

10

1 02

3

4

2

3, 47~

21'079 ---- ---

:37

20.9141Iz z90lb"

em.d _ 11m,s )' - ----- -_ 1,744 1.6159

17 4:953 ------ __ 4~1143 Ila;~ : : : : : : ~yvilWave, .)

S

.nhoD . . . . .

.It Region . . . . . . . . . . . .in'" 1.9D2 IM' 90312

109,435.. . .. . ... . . . . . . .

610ADall, -----

~' b "I

I. . . ... . . . 531 173 15.8

2----- . . . 15:824

11

obnalugh re A Ia rua -1 .. :

S .3 . . . . . . .5 11 35 F ,uni. . . . . . . . . . . . (South Caralm .. . . . . . . . .

E-ru'l,... ~Iurll I fies)_46 5p93 . . . . . . .. . :: ---- -- 1W91

5 139 7SS --- 57137'Itlylon . . .. Nfiss'-poi)

B * " -- -)ask

sa-111- ------- Florida) . . 42,3 i,lh 9,12 27~ 45,000 383Nalfilio.. . . . . . Tamua ...;: : : :------- -. . .. ..

: u. ,

an Iago,------ ------------- . . .. . .. . . . .

75,394

-------.46i 390 6D5

8 .47 6124

'

-- ------- -35

8 .38 2123,529

95203Cin, inn

.li ~I:e ~dj . .. . ty2 . .. . . . . .1 '1

:13 7'1

--- " 71 1, . ,Cleveland. . . . ------- I..)--------- 1,428 . 193 o5 8 .490 5i 1 4

24T o

Detroit . . . .. .. (Michigan) 72,36 640 1 .6 13 215 41

384 48 :1 1 2 1 2Indianapo is . ... . . . .. . T ndiarCD -- -To he"

3to

609

. (

6072

103

2 115",5357

11-71 1.5

.54

346

4ut,keraltui

P'5 -- ----- -

. . .-- ----

5 797 9

Midwest Real.. .. . . . . . .--

7 .750 Z .297 5,347 106 314 .123 3875so

Aberdeen . --- -l .... . . . . i1e, (1) Inlow)C ic 4,894 1 66C 3~W

651

305 997

----------- -310

------ -5 .637

30

1 1

C asM.Ma- Iown) . . ------

,114

:. . . . . ..

-*105

IS, . . . . . . . . . . -

951 8Fa; - - (

N.rth C.k't'- . : : : :5

i 11 ---------- 3 1, i --- ------- -- 36nMi w Dvisco 'in)_ __ .. . 1 .

On are : ~Nebrax a) . . . . . . . . . . . . .'

35013

26 7------------

6610

173

WITS,384

7 5. . . . . . . . . . . .

137 .4407,363

toZ I

St. Mix.. ri) . -------- _ -_ 1 996 166 I,RZ5 595 916

1 95,905 70St . Paul--,- . . . . . . . . . (Minnesota) . .. . . . . . . .Sp,imgfleW______ (See

3666

19 6-------

162

2

a5

35 .6643131

---------- ------ ___

35.52831 .217

13614Sou

freest Region-_ ----- --------- 1,838 494597 175J

585 282 174,4039DOAlbuquerqu e

A.Ifin ---- w0m) 1,", 1W. . . . 4

9J2------

5572

1 .,2

359 353 .298 --------M - ----- 5K76i_ 3493

- ---- ------ -------- '*) ---- -Dellas _

Denver . . .. . . . . . . . . . . (Colorado) . . . . . . .18412 - ------- -

184to

1!)~15.74,995

-74 :954

944'Lh U, Back-- . . . (Arkansas) . . . . . . . . . 416 411 16 35 ------- - ------ _ 31,No* Orleans ~Lcr.m-) _C,

Ishe .

. Cf,

. 0 k Inhe"i

22 ,

5

------115

17, MIT143

"--------

16 .89 1------------

124

11will, I. . . .

. . . .. (K .e .x). . . ... . .. ... ... 5 - ----- 5 105 -------- - ------- WWestern

... . ... . .. . . . . .. . . . . . . . . .. ... . ... .Ae,h ..... ~Ahlka) .. . .. .. .. ... ... .112 .032

1

1 .755 109,472 80 51

129,9344

1,2834

IZ8.__:

355IBubo Irish ., ---- 25 ------------ ------------ 25

F . . . . . . . . . . . . .. . : : : . . . . .3 1

IT""1

Handle - ------ . .. .2

73 170 ~:~

1

31 7

2,313 107. .. . ..

1 6211, Angeles- '

a2 a ' ""*'~ '19a 2~

3 .108 219 53 .772 731 52 .905 13GPh

.ex, , it )A . : : :~: : : : : 2

5)( ----------- 51 2,281, (*) 2 .272

T oPar d . . . . . . . .N.._ Nevada) - ----- ------

2394

5 2. . . . . . . . . . . .

4 2--- -------

145

46 .586

4I s

------------6,542 21

4Lak, CAY .1,11 3 -

327

2 7San 106 .416 60 IK52i 239 2U .93

, '8 3

offiseattlie 1cast ,,rna one care ons ----

7137 . . . . . _104_ !)Do

I

-------- 113 43 .969ID

62 43 .83110

16

"a ""R-- -- ----- --- ---------------------

3 . . . . . . 3 10 t oothe

` ------------------ ---- ------------- -Umd,sftib.lad : ----- ------ * ---------- - --------- --------- -- ---------- ------ * ----- --- -------- ----------- -Federal deposits a d depoliery ol lot,

tax. . . . . . . . . . .

_ * _ __

-

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

rG so me, lubricaung or , an excess ICA credits I .T1 slurred to Government of Guam . . .Withheld 11113 of laderalernployces-- ------ - .

. . . . . . . . . .

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

. . .. . . . . : :. . . ----- -

. .. .

:: ::: :i: :

---- -

, -. . . . . . . ..

:

_ :~ - --: : :~ _ : : :- : :

--- ----

-- -: : :

:~ ---- --

-- 1 .1Meant n

, CCU

"t 11,L

I, Is .,-I bar un~- --- ------ ---- - -

and i_A', Force n

dbvy. . . .. . . .. . .. . ... .. . . . . . . . . _1.. . . . .. ... . . . . . . --------- --------- ------------ --------- - -

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

Totals for states not shown above

California-o'.

M1

41 N1

71 111 21 1b) Illinois-

1

IT3 7 3?

~C _3 4

1(c) New Yorkit) Ohio, .--

232310

7.1587

122 1 3Wo 280

~

4

38,227

11

.

38 .1451 3 7

3 1(o) pmus,wru. - ------- 640 6 58 .550 ------ _ - 11 33

921 2t

I) Tax . . . . . . . . . . 1 ., 5432

83 .239~, :

558 444

Table I.-Internal revenue collections by sources and by internal revenue regions, districts, States, and otherareas-Continued

Ifif thousands of dollars See 181,113, P.110fol tax ,fl.,x.db,Ih,, bm0d .wn .1 exten,Mtelal, by smuneas)

internal revenue rcauns, districts, States, and other areas' (Stairs ,presented by singledistricts indicated in paumberes, total, Is, other States show, at bottom 11 table)

1

Total Cigar ' Other "

j26)

s

(23 A29)

United State,, total -------------------------------------------- 2 .20 .273 2 .151 .158 4 .173L 1 .94'

North-Atlaustic Region ------- .132 T,

-

3ii-_

Albany------- ------------

38 ITA (Maine) . . .. . -- ----- -N sion

(fie-chusetbi) . . ~ -- -------O f141 2

. .. .. .. . .144

Rumlily . -- --------- . .. . . . . . . . Ilg,,, ~ h eBuffet ---- ------- S

- --

_44. . ..

27

1 3:_ : ------ (V real) ------ -Burlington -------_---- -

-Hartford ------- ---------------- __ 22'. . .. .. .

.

12

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

:Mirehmitim-_------------- - S .

. C) a . . . .. . .. . . .6 13 1 69 420

l lod11nquhux )Portsmouth ------------------ R h ~ ,Provide- _ . . . - ---------- I land) ----------- ------------ -

Mid-AflimficRogim . . _ -------- ----- -------- ---------------------- -Mruyla .d and ITC.,. ---------- -Bell... ... . . .. . - ------- -----

522B,

4" .8VsG------ ------

22,62729171

~Newark . -- ---- -- ------ ------ : : :~_ Ne,JllIay)-.--

-- ----- 5 5 45.P

hilrdebehis . . . . . . . . . ... . . ~ :~ "Pittsburgh. .

22 .23 7

"1-)

22 .23716

. . . . . . . .

------- -- -Richmond, 500 .?9 1

499 .855 22i ;i iWilmington ----- -Southu-st Begin

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

Aflkmt `------------------- ~G rRb1-------- - _-- ------

I . ,1,236 .360I

I . )

1 .220 .479

. . .. .. . .-

'6615I :DI7 . . . . . . . . . . . .-

Dinnringh - -------------- AI~b-a) -------_------_------ .... .. .C lumbia . --------- ------------ ~S uth Carolina)- - ~ ------ -------------- -Greausbo, ---- ------ Hart h Can. Im) . . .. . . . . .. .. .... . .. . ..

1 .5841 .215 .067

. . .1,213 .953

~'1"i) - ------ --- -Mrs i' --- ---

223_ _

13 . . . .. .d. )_ __ - ---- ---- -- 16 .292 057Nashville . . . . . . . . .. . . . . .. . . . . . . I'nnen,e,, . . . . . . . .. .. . ... . . . .. ---

Central Region - -------------------------262

434 .929. . . ... . .

43D,6544

4120025774

dl~ bl,.1.1*Cincinnati,~dCleveland- -----------_----- (So

9 1697 . .

91

84

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

Det oit --- ~Michugan) ---- ------ ------ -- -

23 2:Imlenagarl I mfi,na). . . . . . . . - - -L ""t la - ----- ----- . .. . . . Krnt .,ky,f . . . . . . . . . . . . . . . . . . . . .o

4

433 .3,1 ------ 492,6188 . . . . . . . . . . . . tioPn,klrsbqlg West V 'Final -------- 307 . . . . . . 307 . . . . . .Midwest R eg .. . . . . . . .. .. . . .. . ... .. . . . . ..

.. . ------- - I -- ----- -- -- .- 49

94o"d

~S.iilh Dakota) . . . . . . . . . . . . . . . . . . _ ._ _Chirs` _

::7 So, (b) below) . . . . . . . _ -_ - .- . . .d

. _ _42

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

ih11V5 : : : :! : :~ : _ f owa)-_ --------- - - - ----------- -OeS MFing- ----- ------- ---- -----

. . . . .. (North Dakota) ~ - ------ _ -------

. . . . .

)(---- --- ----- -

Omaha

------- .. . .. . . (Wisconsin) . . . . . . . --- ------- _Milwaukee

- ------ . . . . . ..7

---- ------ --t- f

- . . . . . .. . ... .. .. . .. . . .St . Louis,

.

-------

St . Paul-(b) hot..) ---- . .. . . . . . . . .eld ---- ------------- -Spliflgr,

; 1,S,,

freest egi,n ---- ----------- - . . . . . . . . . . . . . . .. . .. . . .. ...

Alhuquetq,e-- _ .. ------ --_- (No. Mexwo)_ ---------20

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

9

------ -An sti-------- ------ ------ (So . (f) below)

bCheyan .,,-,- - ------- Isly,ming- - ----- ---- ------ - - - ------- ----- - --- - -----

A lkR ck . ----- -Little ------ . .. . .- -- .

. . .. . . . .. . . . . . .. . .. .fa . - . --

au-) . . . . . . . - --- -------- .. . .ie, () i~ . . .0 kurah0una City. . . . . . . .. . . . Oklahoma) ~ . . . .. . . . ... . . . .. .. . . .. . .. ..

Ka-0 --- . .. . . .. . . . . . .Wchit. - .

.. . .. . .. . --------- -Iffelter. R .gi .. . . .. . - ---------

. . . .!2

.2

:. . . . . .. . .. . . : .

22. . . ... .. . . . .. . .

69Aurh ...ge -------- --- - ---- -' Idah.) -----_------_--------- __ .. .

1

)

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

. . .. . .. _

. . . ... . . ...He .a. --- Ivan t-) --------- ------------ -2Honolulu . ----------------------- - (Hawaii)

_ --- -------- -To'Angeles -------- ---------- - ~S e (a) below ---_----- -

'~,nma) ------- -1 ----- -Phoenix. ____ ---------- ------ :: . : . APortilud,_ _ ------- ---- (Oregon) ------ . . . . . . . .. . . - : :: ------

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

Reno, ------------- - ------ 'Nevada)------------ -- - -

"" L",ty Irish) . . . . . . . . . . . . . . . .. .. .. . . . .. . .. . . . . . .. . .

. . .. . . . .

San ~S,, . d) - - _. . . .. . . 2Washington) --------- . . . . . . . . . .

. .. ...:p - .3 . . . . . .. . . . .. 3

office .1Pie -----

11 .73 311,733

IIJ3311 .733

.,be -------- --_----------- . . . . . . . . . . . . . . ... . . . . . . . .Undisftil,fit it

F ad etal tax dean its and driaosiftry receipts' -Case a'a oil, led el- FICA credit, 7[in,, b-at e

"In'to red to Governmentof Guam -- ---- ---Withheld taxes of fed ... le.,pi-esClearing ,u,,t to, Lnisa taxes-exatun fuel and oil -Air Force and Na . . . .. . .. . . . . . . . . . . . . . . .

Inlely for state, at been be, ,

(a) Californ,..

.. . .' -------

13 2 22 59(b) I Ilirmi.. :: -(0 No. Ym1 .____ 5.

32 11 o,

36

...(it) Ohm_ .. . ~ --- : : : : : 7,13

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

17 2P.riv-a.le I . . . . . .

22

400202 1

2,~

3

1

1

813 --------------ji

Tobacco I-I I,

104 105

Table I.-Internal revenue collections by sources and by Internal revenue regions, districts, States, and otheramas--Continued

[in thousands of dollar,. Sao table 3, p. 110 to, to. Islas . .it further breakdown Of national total$ by sources ]

Internal ranxim .. districts, States.

and-the' (States represented by single di,-IfFilers in uAted in parentheses totals to, otherStates shown at bottom of table) otal

30)

asolin e

31)

Manufacturer

.luitIlu g~oil, at.

32)

's excise taxe

Tire,(wholly

o, in is r!.1rubber) ,

be, . andit

hir er u

1

1

'33)

s

Moto r-hiclechunsi,bodies Other I-

and

4) (35)

Ret

ot I

36)

ailers' excis e

OR.Com-

mercial.1ins.

fuel

37)

taxes

No.-Com-

onercia lexi Da n

fueloth I

-line

to "(38)

United States, total ---------- ------- 5.728 .657 3 .741 .161) 95,474 681 .320 1,154,460 56 .243 326,933 8 .838 19 .381

North-Atlantle Reg[- . . ----------- _ . . ... . 292 .729 95 1 109 415 159,039 17,067 31 1010 is F26 -533 1 40Albany .- . . . . . . . . . . . (See (c) below)_ . . .. 2 .94 2 .5787

60 295 16:

11'

31.2 1

Aujust-_ . . . (Maine) . . . . . . . . . .__

.11 11

3.1 1 36 96 1495

1, 331 9

Boston. . . . . . . (Massachusellat- __ 37~963 33 .618 215 1 GOT 948 2 .065 3 .555 1 .2 58Brooklyn . . . . . (Sao (c) below) . .Buffalo. . . . . . . . . . . . . (See (~) below)- - : : : : : 4,01 7"

5.29320.238

'0

29

8.857

17,482:01 4

1 464144

1, o"1 :2114 24

5

713 192'

53Burli " thin _ (Vermont). . . . . . . 1 173 11 (*) 17 73 756 13 1 1Hartford.. . . . . . . ~Gcmn.ficut),

:'L~ 56 ". ~32 10 71.111 2 .am

26 .095 82 34MaphaftPOFbsmO:p, : : : : :: : : . (Sao (c) below)-- -N ma

Hampshire) -----66, 091

1 .7674 .94 81

404?1 54,660

185 .004

1511 .408

254466

59

3815 52614

1,.id .n I had. Island)IF ----- -ee---

2 .874 2 .278 243 27181 227

7_ ,Mid-Att-tic Reef . . . . . . . -------- 711ui 691 93

32D,6!]D

472 23

94,553 944 .1 46,392 796 3 .222

Baltimore (Maryland and D.C .)Newark, . : ---:::: :- (New Jerxer) ---------

:.84 30

112.19Z

:26 27 359 .138

2:152 .393

5 73 :4? M16 45 .643'

1

Z .5 '1 2'3.27 41,027 24'12

%1 476,

'!"'t p ! __ R'" 03' '04

"1

6,844 42

.

-3 7' 13 "'

127 ,

'4'Pit 1h :: : : :: - 266 405 48 0772 : 9G]: 3 .641 4 .611 161 706j .7 111s Richmopd . :::: ::: :: lughia)--, -------- -

We,.) . . . . .. . . .

(Dole"i"1th s

11 .058481

2 111,' .49

1.51 735 1 .729-3

60 2(*)

5,14 1910

175o.

.... _ --- :: ::::-9ros ' .I..12486:751

599110 .92222 60

1,242

Ul

15 .73i1 .7 1 2

135 :671

..

2,67923'

30 822

1

1 .2529 1 .95D

Burnagh'in . . . . . . . . (Alabama) ----- _-,

16

. 33

9:712 44

1

2117, 1 .686 24 3 .652 115 194

Columbia __ . .. . _ (South Carolina, . . . F4 .111 13 184 1 F, 269 275251 2 .

W 68 1 27Grxwr3bom: : : ::_ ::~ -:::is

""'i

17 .37 .

31 11 '

32,741

' ..2 21 28 :'

1,944

'2'

3D

43

1 :11

"

21~1 2"67

J.,,on, . . . . .. . (Florida) . . . .... ....."

7 :7 13 IIS: 210..

2. 1Is

1 .830 6 .7 54Niush,ilkf~ ------- _ (Tanniessums) ---------- 15 .600 11.904 89 307 3 .259 14D 1 .638 17~ 327Comtr I Regioa__ --------- __ ---

- '," '394

, "' -8,414 407 .782 7" 096 I'm a"

'3995 1,7 6

Cmei ...H_ ~.Iel ~dd~ b1:j.- :: ::: ::' as ar~._ ...Clarmhad. . . . . .

:113"121

'0

,I116 :81 . 171' 1 :712.

501 353H'

7

111an3 :117

"

152862 253117

Detroit . . . . . . . . . . . . . thlichijim). . . ..... . . . 778,D99 40.579 378 -22,795 751 237 fin M6 198 2.28 1

Indi..poll . . . . . . . . . ilinditus) ---- 42,734 32.280 807 179 9,200 269 9 095 219 29

I .Micuill. .. . . . . . . . . ~KepjuVky)___ ----- -%,kmzbuIg . . . . _ : Was agm,.)

65 .9272 .529

61 .9521 .991

1. 92 1

109243206

1,7,7 1, 2 323

5 :3111 .1197 1653

II l.

Mid at Region --------------------_------ 654,59 517,182 10,372 0,930 109,610.9

7 58So .

828 11110 2 .1 "Abard.. . . .. IS th Dakota), . .... ..Chic : : : : : : (S :. (b) below) . . . . . . .D :r;W;: : :

4 .468380

. ""2841'10247

:

3

7 .543 4 .1 214p33

'.5 7,7

2, 1`02 1 . "'20 .08530

204 1247 1. . , ------ (I- .) ------- --- -

Fargo . ~ ----- Month DMAA1a)___ :7

1 : 12'614 7233.053

10521

2, 130

47

2,34 72,497

46 214.393917

1353,

94

Milw. (Wiscomn.) ---------Crash . . . . . .

. . . . . .. (Nebraska)u

63,931 52.010

-6

16

275331

2110 .662

53277 387

4 .

See2,867146 25 .

22 3St. Louis .- . . . . . . . . . . . . . . . .St. Paul . . . (Minnesota) .

99 34,55 239

:92 1154g,381 1 .24~19, 1,124317 3 13,' :g 21 2.04

6

-11.135403

1

162174

7

240 1

Springfield ---------- (Sao (b) below) . . . . . 27.707 25.216-1

27 2 .]A 272 3:005 123 120

Southwest R-

1 .706 .746 1,626,149 42 .451118~129

18,365 1,645 86 326 2,157 7,106AnnA U" Is

in . . . . . . ------ (So . (1) be Ow)4,219

N 8 SIT4 .09 7

115 539

25 .82:11244 .

81272

2,2902

942 :974

32 a931 1 3611

823,453Ch.

y... a . . .. . . . . . . Wyoming) -------- -H

Bell " ------------- (San I Ibelow)

18:320291 .852

S:267

275,3102 1

7 .390

1 5

1 71113

'"4314

1 :92 719 .440 32427

40103

Do " ~Coloradi ---- -t"'BIWC '.: -.::::::Lit 1. - Atka-) -----------

37,53334,790

24 .95 131 .731

- 31'

I .224

:410

"172 :1 7"02

7319731

3 .131

'

1 S3 21 115

He. O'leam,.. . . .. . . . --------- - 607' 3 11 '

411 9z 1 .095 82 3 :211 222 287Oklahoma City.... .. (Oklahoma) 8. 12531 3 : 756 " 505 790 3 .981 92

15 .290 268 1 829

Wichit.. . .. . . . . ... .. (Kim-) . . . . .Mostern Region --- ..... _ ------------- -

Anchorage.. . . . . . - (Alaska) ::--::

29,764

32

28 .55 4385 .06 7

17

3.'.52

(

I1. 5_. 6

7

73.'

922

7

186 .497

1

3 .83953,962

41

20 11 .726

12

1941 .93

31Raise . . . . . . . . . (Idaho)- . . . .. --- 1,766 1 .394

1112 IM

134 2 113

L0364No

It,;. . . . . .. . 1011A a) .----- 711 587 2 56 43 22' ..

7 49 39Honolulu . . . .. flawiiii),_ _Los Angel ear. . . . . . . . (See (0 hot..) ::::::: 241 :21625 I.O .A l' 1. ]';1 -4

.21 1244

1 .1 157 935

12 .'Fj 211L5 .TSf 13fiI3 6932

Phoenix-- : : : : : : : : : : ~A irMI) . .. . .. . .. .-Portland-- Oregon) -----

4 .414359 4'21,310 32

212479

14 412,068

1 1'70 1 :071,428

158114

14 766,,

.a.

. .. . . . . . _ (N

..d.) . . . . . . . .1 ' '

(.1 35 62 71 .

658 52 3 0Salt take City (Utah)- - __ ----- -San Francisco.- . . --- (See (a) below) -----

5~ 129187 .172

" 905170 .912 6,615

20 11,878

2977 396

2.725371

1 .880

19 .52164

4573 8

3 7Seattle_ . . . . . . . __ (Washington) . . . . . ... . 29 .356

7'894 5 271

:20 $39 308 2.745 133 10 8

Office of International operatio- . . . . . _ ---- 3Z2 --- 17 16 289 78 1 --- -P.Oteft Rico . . . . . . . . . . . . . . . . . . . .

h .- . . . . . . _ . . . . . . . ------------ 4318 -------- (~j_ -- -------- 174

12-------

H9 - --------)i- ---------FUndistributed :=I, chilsexi, and dfirpi eempt--- -------- ------ ------ ---- ---------- ---------- . . . . . . . . ------- - - ---------- -lob, '

.""Oil. ..it . .- FICA

credit.' .. . . . ..

. . . . . . . . . . . . . . . . ---------- -- . . . . . . . . ... . . . . . . .Transferred to Grrv ;~~memf of Guam

----------- --- __ -- ----------- ----------- -------Clissfirig ...at In, Ex'e . '_ lip s

fuel and all-Ail Fare. ad Harry ------1 ----------- ----------- I ----------- - -- ---- -- L

- -

:111~

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

C'Mor"i ----------Illinois . . . . . . . . . . .

(c) New York~d) Ohio-------------

.1 Pit . . y"'.

IF) T'nes--

428,436408 .328129 .678W. 308

1 .675 :235240 399

Tat.11 far late, hot a how. imen,

351 .029

306 .323.13 :1T9 69 2

599 0161 .190. 908

11 .7627 .5s7

178

1:230

I. ""33 .214

4,151IF ~ 059

6 .599

11 . 23'.7 '31

12 :76836 '

": '.'1 4

9 .270

1 3772 .612

989

07914

35 .27223 .0909,795

17 .52330 .04052,378

969'212.2

3843341

. 038

1 .3061 .398

268gm48 1

4 56

Table I .-Internal revenue collections by sources and by internal revenue regions, districts, States, and otherareas-Continued

[in thousands of dollars. See table 3, p . 110 to, tax rates Ind Further breakdown of national totals by sources]

Riniiihils' IxIi,a ta . . .-Cm,ti ad Mise'llimes- ..else lose'

Internal re,imue regums, districts, States, and othe rat.'

,(State, 'Ip--pled by smile district, indi" Teth.no 1 r oscau- Use of in. T MI .

cated in parentheses ; totalsFor other State, show n

at bottom of table)

Diel:,',Indat .,be,,

.

TotalOil

I'lirlyle,

fzjim .1

Personst"Imme.1

air thave'

lalion ofprops I t

motor uOI .,.far by air'at

ilfti.Y by:

(39 f40) (41) (42) (43) (44) (45) (46)

United States, tcitl_--------------- ----- 293,603 7 2 .694,942 1,650 .4" 515,269 42,271 Z9 .455 115 .752

Harth-A"initic Region, .. --------------------- 16 .590 1 614 .079 276 747 157 .030 21,291 6 .4a 42.057Abary --------------- (See (c) below) ------ 1 .400

5'1

:3 33244 34 4

. . . . .. . . . . .

Augusta_ ---- (Maine) ------- -Boston

* ------- Va_h ...it'): : : : : : : : 1

:2943 '95

1 :271998

'3

45 356 .778

51

8.350

. . . . .

Ai -5i 1(7*~ 2 .9(8'7)B roak Iyn ::, : IS : ~,c~ bete . . . . . . .UpFI

.'O__ IS: iml-*wL . ~ . . . . .1 .3 .08683 --------- -

:72 490IS

. D966711,9463

63 .9203,493

2 .97 8113

3 .119505

Built (Vermont) ------ ------- 651 . . . . . . . . . . . . 460127

6 1- )Hartford--- ~C an . i"t). . . . . . . . . . .Manhattan-- . -------- S~, (I)tbeki.) . ---- 1-

2 .1751 .893

--------F

162385fiN99

80 .07 1123 .147

15180 .988 2 117 7'2 .929

:17A D03

Part... . th -------- ~Nie. Himi ... . . . . . . . 631 75209 11 :

7. . . .. . .. .

PIce,rd, . . . . . . . . . . .- : : Rhodaleland)--------- -Mid-Atlantic Region --------

Baltimore ------

220

2:377

43 095"287 .028

59,943

1 2237 .43,MA

1710 .310 .03"

9738

(.15

343114,g65

(Miami, ---------- - (New Jm,er') ---------Philadelphia S.a (1) be mi) ------- _

511 1A

12,94

7.1 :~1411if 1 19 .123~U .

02

a7

185

. . . . . . . . . . .

54

1.

67;I8

4.037~PIft,bu,gh . : : : Is, 1.) below)-------- 15 .330 . . . . . . 12 .898 9 CIH

47 . . . . . .

.5 v ): : :, : : : :k

ichurood. ..

(Virginia) ----------- 4,849 1 31 411 32,948 62Wiimi,gt,

I----------- Delaware) ------ -

Southeast R,g,o--------_---------------11 7

27 . 337

. . . . . . . .. . .7

:52C

381 .160 25, '111*3) 80 DU" i :Hi,10 13 .0

,

17 450Atlanta --------------- (Georgia) 1 131 1*) 171,WS

110.405 50, 720 439 1 .978

5

:665" I

BimniI1h .1 .1baml)~A

:3, 53 . . . . . . . .99 .712 91,063

- --------- . . . .. . ..5.352: : : : : : : : ::C.,

Carolina)put htiroln .GCarolina) . ..

. :4592576

--- ------ )~ 4 :74632 958

1 . 742019 7.

'05 .3D6

.1

IM mi"'p"i) ----- I

. . . . . . 1 .931 ------------ 2 .504464

a. . . . . . . 'laskaxi . . . .N,,haille ------------- ime-IF

1 :~174 3, 11 . 3If 1159 2 1 125 9

35

11 - 7211211 47

.541

:,113

ICentral Haiti- -------- _ ___ - 17 2.~ 131 200 52 941 so18,

~.0Cierierifti- -------- isc. (it)

2:739 33,023

:25 382 413 7

Chastised -------- (Sao (it) below) --------- 11 121 11 111 1 241 131 1*1 it2a

29Detroit--------------- ( M

I ia i ' ---:nd nappin. -------- (Indiana)Z '

:'

. . 5 7"1 . . . . . . . ---

:

42 .1

:4

I15 .01

.~

194

53

21

1 .

723

1 6

Lou ------- -P.rkwab

5 115

1 .572

. . . . . . . . . . .

. . . . . . . . . . .7 3

11,3 1 9 .9833

12---- ,

2I

1 .)1

Mid ..

A47,574

' 23 '

.

-

71 .0 1

.5146348,94 1

664181 .927

3V.53k

. . . . . .'--- -

1 .970(1)

5 .21

Chicali- . . . ---- (Sea (b) behna) ------ -Ba,,

MO""_'_- ----- F"a)- --- --------

: 31 14 .174

: : : : : : :------

240 .98 77.654

112 .46 74 . 315 100 .48735

. . . i .000S .

084

is

4 .336

Fix ------------------ (North D .k.1a)_-1 -----

6A ' '' -------- - - --------

I-)

px.hI__: ---- --- _ (Nebraska )- " --------- (Wisconsin)------134

2 .54: : : : : : 7

------------:90 1

69 .35424 .54267 285

iii24

V_ ---------

35

-3

St. Lou --------------- 141 1 I. IU81

:9

1 1 1 1 11 1 11 3475 13 14 ..

3St . Paul ---------- _ (Minnesota) . . .. . . . . . . . . .

' :1

.. . . . . . . . . . :33 $77

"6 1 :7,is 3

1 .049 1131

_:

'I"- (Sea (b) bakes) . . .

SO I.

Southwest R --------- -- ------- - ------- 2.712

77,064115~419

Ut 335 79,05069

32 .651

5

1,251

1

5 .603( .1

29.52 2Albuq . .,q. .. . . . (Nma MO...)----------- 2 .779 ------

", 190

14 1 1 . )

Austi-----_-_---- (Sea (1) below) ------- : : ~

Cheyenne -------- -

Dallas------------ -(f')pbe)Ipw_-). ... . . . . . .

11IJ574

310

"

: : : : : : . . . . . .: : : : :: 56 525 .

754

47 71

2 .26610

1 1 117

8 .3101

1 5 311

49

1 .111

89

5 .Be.... ~A

L R

~ikpfwdril) -------_----- -

ittle

:61 3 13 3"1 . . -

6 :7

683 .117

~ :44921 1 11

8 :, .3

32

3 5

. . . . . . . . . . . .1329 15's.

INew Oil- ---------- (Louisiana) ---

:7 72 7 Ifi.340

,5:.394 57 191 9 .236

Oklahom Cit ~Okl`hmaa) ------- 13 .1931 194

1,2312 1 11

(-1Wichita- Ken... ) --- -------- -

Wester, Region ------------------_--------- 1 . : :L444

50 403 1-):8

396,095975,59 3

21 111a

" .13(.)

6,6414

3,724 17 .8113Anchorage - ------- (Alaska) . . . . . . . . . 55 ---------- 54

2 :if. 1 .311 at 560iB.Oc_----: ------ ~Idxhl)--------- . . .. . .

Helena Meet,1 .94 71 .31

------- 1 :361. 3479

21.1. 2.72 . . . . . . . . . .(1) I .4)

1. )Himol'iLos Angeles- (Sea is) belps) ------- - 3E)fi14 . " --- -:'

7 714:5692 3 113 :2'04' ."6324 ' 71~ 3, .46 2AI'S

455 1

Phoenix.. . . . . . . . . . . . . MO...) --- - -------- -P tl 0

4 .767

111

1 9241 413

105

41 1

124

11 323

431'43 ZIor and. . . . - ------ ( 11inift) . ---------- -

Re .. . . . . . . . . . Nmr .d .)_ ---------- : : :S-11 :Ake City _ ------ (Utah) . --- -----------

1' :~87

1 .779

: : : : :-_ : : : : : : 12 .51S

9 12

.

14

41

.44

1 5

. . . . .

: : : : I* '

VWSao limens. ------ _ (See (a) ls,law)-------- -Seattle- -------- - .shmgI .p)

18 .6902 .50

. . . . . . . 169 0

1 324

131,01545,677

20.2689 2 .0293,11

2 .~41

7 .8601, )64

Office of InternatiomIl tion 71 :1112 64 2 .812 110,Puerto Mon .- --- -------------- 1,789 ... .. . . . . . . . . - . . 1 : 7

Othm ---------------- -------- 6 .313 64 2.882

i

iiii... . . . . . . . . .. . .

UmIrd,itimedFadmal to, denotil, and depository receinse --- - ------------ -- -Gasoline lubricating oil. and excess FICA vadils7,toT,anste,red Go"mount Of Guam ------ -Withheld taxes Of Federal mriple,ael . .. --------- ----- __ .. . . . . . . ------ - *'~ -- ---- ---------- ----- -Closing

"It to, E .I-t-s-alion fue l

.ad il-An Fare, and Ns,y. . . . . .. . . . . . . . . . . ].. . .... ... .. . . . . . . . . . . . . . . . . . . . . . . .---------- -1 --------- ------- - - ---- -

Totals to, states not shown aboue

,nia --------- - 32 -l 1 252 065 154 219 55 010 114 1 .111 1 .11 1Oil

_I ~, :

235

:254 48451,

838

:23 2513' .

097

:00 556N8 .445

:4 005

20,356

5

6 :12,325

336

38:0080mo16 .59 i~ . . . . .

~

9 ,

85~622 M 7

~

1'J j"le) P :,n,,y In,,------- -as 1T ------- _

2E .224 i ----- ~ :7 : : : :47 .184 . . . . . _ -----

1 1 :839.74 .350

12.0"20 .M3 23223.691 IJ53

25 .14G 03 74 .32 0

106 107

Table I.-Internal revenue coliections by sources and by internal revenue regions, districts, States, and otherareas-Continued

[in thousandsof dollars. Sectable3, P.110for Writes andfurthe, b,rlkdo,n of national totals by sources )

Internal iticts,Slatut,a" of 11,11 ,a', "Sit .,

.. . . . . . . ..at .

" '~-n%rd

in.-ted in I Is 1.shown at bottom of llble~

' __reariierei4aNarcotic, an

din

c',,clude, f.P.O.oxlevel

(47)

_Gain-perate dIxon,",device s

(48,

__W.Ec'i?g lives

c . p IN ago "

turne r

(49) (50)

_n

hrjb*,g'1,sfor v. 'o

(51 )Us . "I

-ax o n

11',raf t

I

:ie

(52)

I -Private~updlli o

,1. "'t-o t

"One

,

(53)

I the r

54)

U

ad exciseIs.

(55 ,

Uh It'd State 1, total . ~ . . . . . . . . . . . . . . _466 14 .84 7

__

___ 348 4 .315 157,279_ 20 .37 56 . 5 88,022 7,9,1"glc~r of,

-Atle, c Region --- .. . .. . .. . .. . .. . . .. .. I317 1 ;-S 94 I Z wl T'ia 16 491 63,744 72,473lbany

11 982 2

:

-- _ ,1 4

2Unstop.. .. . . . . . . . . (Mall .chol.tts)1- 1

I 1

------ 41312

62 22 11I

24111

8 31,378

lb871

41

-2U 2

1 1

U r... kly ..... .. .. . .. . So. , c) be low h 80 1

9: '13 ------------ 91

~1, figgoff IF, . .. . . . . . . Sao e) 1 ------- . 1 14 2 . 1 11 1

--------49 2,191He 'fingto n . (Vermont) . . . . . .Hartle

rd ... . . . . --- (LIerecticut) . . . ... . ..

) . . . . .

64

' ~ 4

1 .7181 ,6i 779 681 3h,94Uman

hIlt11_ _ --------6

11 1 ., 3 .322 5,207 24 .04861-906 _I`-ZO 5

~ : : : :u __ :

HNew Hampshire)------ -

Provider, R - of - tar an it )h

1.

1

6. . . . . .

4

6

37 8423

2114 7 ,

94

-5 326 2am, --- .

Mid-Atlantic 4 12 3 2I'

.21

N993

55 .8j 4 .11 44 11 3

Ballonou. . . . . . . .. D.C .)Nmva,k~ ----- a

.lariat)

1 41 13 . 1 1If 7 01

1 .14 .2 7

823IN

111iHigS4 ~

I g"~4

31 5

3 80ph

flxdalr,W~--- See( or brio ~

; : -------- 11 4 1) 48 7 .096 308 3 .135 943 - 1 .868pit sough (Sea to 3 ~7 52 554 . .. .. . .. . . 1 71 916R .cileve d ;

6 85 2 31 5 . 6613

:

'

ty, :ee Th mmRtU Delaware). . . . . . . . .

-at Region --------- ------ ---1 333

-----2 .150

TG 6405

1.,21 .705

562,704

7013 .530

11 11,7 18

M .UlZI 451,

---9 205 11 3 "

' 1 2'

,S1

3 37 513 :Dl

: :Columbia (South 1

11 )813

1~ :

h,

2 1g2 :

1 13~ 53

I 2

147

1. ,

1 D

,

17

TO. 7Gfeemse,re. . (North Carolina) ------- 5 3

~ . :1 I'~ '47 1'.7

lu,2. GZ3

Jackson . .as "'PP?_ .. . . . .~F'Ivl,idx) . . . .

..

N DA 3 411. ' 71 11

40, 11

If

1 1. . . 1tH9 -1,511, tiff

Nashville. . . . . . . .. .(T

'preal'o) ------- 37 ' '1

29 2 :944 li. 306 200 - 1 :050thirst R.

"I" -----------------------~S" 'd) below)---------

1 71

677178

2 90183

22,32 93,435

%9369 1 : 8

22 4499

1 .614700

518 .563-6 .

' 'cleveland So. (or below).I

"... .. ... .. . - -------

1 43 4ot

------(Michigan)-- . .- 4 1 .

I1 ( 1 .26

R4 05 2"262 4 1 1:62i~Iudl na) ----------

I'llid 418 4 .287 194 997 1 12 ' 311Lou

Ill.1 11 Kentucky)-------------ll,k=- (West Virginia) . .. . .. . .. .

4

1

111 2

6

%

1 "

1. " '!11 . 13~

15059

,2 ,

121 :46 2

40 7bf _ : : :

West ---------- -'431 368 19 221 27,564 4,874 6,001 3.435 44,400Aba,dmp.. . . . . . f~6 15i6ii) . . . I ------

I "1

5 696 37 2

7 2

1 21he,l... . . . ~Sm His) but..) . . . . . . . . .Wnas-

M

2 12

.7

1

31

7 417

6 .694Z 941

3 .17 7115

2,538111

2 .09211

20 .73~1 11 1

a. (NorthF .rg I I2 'gl .2 5 'S '

Mili a~WeWisconsin _ .. . . .. . . . . . .l~

I", 4 1 3 111 111 7 114

1 "cb'asha . . . . . . .

Dinah . . . . . . . . . . . .. N

3 24,1 b 1 :&~' il5 1

41if,

F :710St. Louis. . . . __ mlesou'O .- . . . . . . . .St . Paul_ .. . . . .. . I

. . . ... ..

21

9 1 411

4 .525~ 131

26 81 111

8941 416

644 1 1

42 .55 71 1 1

Spri.ghold . . . . . . . . . . or, 1 7 3 34~, :a , ~ . ~. .... . ~ 5 0

137 US 7 379 24,853 2 .212 4 .359 4,759 20 .029

A a- -A .st-_ f) 'vkw"___ . . . .

----- '

331

a

5

. . . .

2

1

1386 1 0

4,86455

1,1977

3 .03'

7

2,266 - 1 861 " . 5'Ch ~Wyrrroiro --- ---- _ - 1F ,

. . . per- :Dallas : : :: : Sao ) be]..) ----------1

40. . . . . . . _35

1

13

14

51 0

7 1 19

56

------ .

33

. . .. .... .

9145

3-1g, a,

381

D .,yer-_ . .. . .. W ine'

.d., -------------- 45 ~8 f .):3 ~

2 u~S . ...

339 15,86GLittle R,ck rA,kaosas .., . ------ -New Orleans . . Lllililll)----- . . .

I'l 1122,

IB 1 : ...

1 6991414

ISI

11,058 -27697~: :

Oklahoma C ty Outhuma)W .Wh__'. Kansas) . --------

79

5d50

1f.)

172

2 .74 22 ~ 044

282122

12 1103

2"'Be "' "97 5

,star, Region _:. . .. .. . . 15910,

4ar 37 2 .102 24,686

3 .103 3,733 1,95 15 .986Anchung. . .. . . . . . . . AB so . . . . . . . . . --- lldxlv:H~ . . . . 4"1 1 .,

3

(.1 1

7

f201

1 '002

178

50

3

14441

^2- Z- l

Helena . . . . . . . . . . Momte .a) . ..Mawaii). . .

1

9 164 10

6 5 04516457

1 ~

107

,

7115

'a u

1,62 9to, An gol. . . . . . . . . (See J .) below) ----- 11 4 7 .115 1.211 2 .913 G . (159 21 .37 5Pho'ni, ~Arlzona). . ----------- -

Oregon) ---------------

12

3

~I

221

g

37

I 2'D

3'289

'3'

111

'2

1191

3

- g10

. U . .(Nevada) ----- ------ -2 9, " 3

1 1 143 1 -

4, jH a .12 1

Is Latin it)- ------ ---- --- -Sa

re franc I ~U,'x ()a) thadowl-

140

16344

18(-)

5 52 9 "7 .01 ----

39----- - - ~13 3 5 . 1 2

Seattle-- - lVanhenglun) . . . 19 2 4 41 2 .311 111 294 410 11 .13 1O"I '

.. I lot.; on ps' .tlo. .

- - _

U'3 f . 273709 4

For'

to Ri- -------- - . - _

Oth "ied~---- --------- - - --- ------- -ndi,t,ibu

i ~~i : : : :_ ( . )

JQ

-------

IF -------- vj- 709

~~42

0

-54 7

Find -I las deposits ',it doPOV .. ...iGasoline

Jubricale, is I an

d

----------- ------- ----- -- --------- ------------ --------- -------- --- - ---- __ 36 .71 3

credits' - _ . . . . . . . . : . . . .- ------ - -I'srale dtoG.vern,an1ofGuarr . . . . . .. .. . . ----- -Wdhb

I to faces of Federal employees .. . .Cle,ri.la-untfoil .-ant .. .a ,i,lic

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

andoil

_A , f a,., and Navy . . . . . . . . ..- ------ - ------- - I --------

- ----------- I - ----- -

S

6 1

C 'H.'ria-----------

Illinois ----------

:is pm.~"Yllarli. . . . . . . .ft To - --------------

Miscellanea., excise tive-Garti ... it

Totals for state, not shown above

88872

2117f

5

39

" I15211

202

14,242

20

10:14'.IZ,054

2,2393 :1.7 '5

C369

"I1 li.7

2 :~1112

"24.W32.449

3:013 1, 31

' 7"2 .1762 :100

996

! :11'.

14 .93828,735

41.,I

Table 2-Internal revenue collections by sources and by quarters

11, thousands of dollars)

Oeirlo, ended

Source of evenueSept . 30 . 1971 Dec. IT. 191 . 31, 1972 tons 3 .. W 1

Grand tell, ~ -------- ------- --------------------------- _ --------- 45 .2 2 754 . 41 .666 .893 51,768 .015 70 .168,070

Cur P. ..t in. i ec . . . tax - ---------- ----------- -- . . . . . . . .. 6,35b 439 6,905 .071 7 .100 .505 'Z563 51 1

Individual income " no I in ployment trial, total ----------- * ------- --- 453 '095

33 21,111,111 lu, 14S:. IF . ~31 . 1 11

income tax not Withh.1,1 and sell cne,lmmenltax

_ _

4 .701,304 1' 2U

1 11 3311 207 . ~6 3151 eare. m. withhold and ld-.g. and dis .biln, -wite

Railroad at r.m.rI- . . . . . .

21 .23,11 11 1497 :27 1,3 I -'253 .2p

~2 : 30: 1

268,1':462 370142 0 159

Unemployment im- 148 .87B _95 429 389 .927 389 8,14

1 "late fix ------------- - ----- __ -------------- - -------- - -_ -- 84i .97G J16 .923 I 73O,iU4 IJ33,21 9uift to, ------ -- - ------- ------- -Exc'sa Is'es, tot .] -------------- ------------- -------

11 7~37 :1 14 . 18

95 .8ral4 .59? .355

100,0903 .G881136

107_1664 .024 42 E

Alcohol taxes, total ------------------------------------------------- 1,240 .02 5

- _ -

1~366,50`)

-, _ _ -

I . 180.054

_ _-

1,323 .413

-Di't'lled spilits .- --------- ---- -------

- - , -

_fell ~'I6

_ _ _66 8. j~~q1

' -88 _801

-95-6 73,v -, -clmls . unc. - . - - - ----- : : : :: M 231, . 52~Qtl 246

. . 4 '~::: : :IT .. . .

. . . . ..

. .. . .. . .. .. . 315,061 274,814 251 .036 31u352

Tobacco taxes, total, ----- ------- ----------------- --------------- - 525 .221 557 .167 527 .84S 531 .03 8

Gi 3~afto ~ ------------------------ ------" it FZ4 6 U]2 .ili 515 .252 5F2 1 2.a aC 9 13 .416 14 .420" .1

1414

14 1Other - ------ 30

5 ' 04.2 hS ,

Manufacturers' excise taxes, total - -- ------------------------------ --- 1,978~1~29 1,839 .286 946,919 963,823

Gasoline --------- ---- -----------------

gi3,178 17! 12 I 1u9

4 3 1. . .L In,mating od, mic - ------- - 21 111

:~ '4

'

: h ~~7 "

: ,14

gpil

Twel (voolly aI in us, t at , b be,), I a 11 tubes, and he, 6 , on en,:3~F9, '

~ .05 4is 41 11

11 4 1 1Motor vehicles, chassis . thecle,5 . part

said aCC'S... jo$~4 . . . . . . . .. . . . .r'

Othe- - - ---------- -- --------- ------ ------ -- 14,288657 .50 316,828

:114

8 .561

' :~ 5 ~

16 .56 5

Raiders' excise five,, total ------- ------------ ----- --------- 67,273 89,796 85 .218 85 .5 6

Noncomoneucialavial:.,.,Noncommercial a is fuel Her O~Iwe

2 .944 57

2 .0214

2 .07 4

4 12

'Diesel and special on to, Ionic . .. . . . . . . .... .. .. ... . . 60 .311 81 :346 78 :3M'. : 5

BOther',. . . . . . _ .- ---------- . .. .... . . .... 7

Miscellaneous excial taxes, total ------------- - ------- .. .. . .. . WV3 743,373 614 .538 694,40 5

10%lon,, t nd *61 rhxpge services . . . . . . . . . . . . . . . ... ....l, ,, _W T15 51 EIZ 3116,80, 411 .131in i by ,,T

'. 'ert .n of cars,

. .

Use of in e nationrl air t I Mcihfes* : "' :~'1'7'128 .76 514,321

GG?128.

4"

1', 1 go

il :21 ,,inspoTl, ~T on of property by at- .. . . . . . ... . . ... . . . . . . . . 7 .132

6

37 .470 7 .86 ~

Sugar-, - ------------aNa,coti-edrelfbians,nei' d

C . .n.apc, .'cit gaming du~i,es --- ----- ---------- - - --------------

21 .46 1'3cl

13,337

~2 :3

11111

505

20 .38 77 2

326

13 .11 112 3

680

Wagering O . . sOccupational --------------- ------ 131 4 7wagers . . - - ---- --- -

ll

'i"*"

"s, I

In motor "n --- - - ---- ----- -

8 1,

71 13 11 .4 ..

12 ?Il94 5

28 588

I ~

31,31 7Use ., rn civil er-11, ---------- -- ------------- -- -Private loop or

t'an., re

income--------- ---- -- -__

:'.~

1 21

, :1

J15",4*11 11 2

1Othe . . .. .. _

: - --------------------------------- 2I :j~,

15 .042 14 .635:

73

Uncl.aa,1,,d xciarla.es . . ------------------------------ 83,346 ? . 223 333,5-7 360 .M3

109108

Table 3.-Internal revenue collections by sources, fiscal years 1971 and 1972[in thousands of dollars)

110

S.. .. .furninu .

G .. . it total, .11 so... . . . . . ...... . .... ..... . . --------------- ------------------------------- -------- 1_191 -7 11.Corporation t."'. total, ~ ----------------------------_ ------------------ ----- -- ---------- --------------- I - - - 30 319-95 3

is----------------------------------------------------------------------------E . ... . . ----_----------------- __ ------------------

Individual income ad employment taxes. total ------------_--------- ---------------------- ---

incom: tax not withheld and self-employment tax ------ . ... . . . .. .------ .. .. . ..ota, in tyax with aid and old-arg, and disabili insurance totOJ- it ., . . . . .. . . ------- ------------ -------

Railroad n ---- --- ---------------- ------------------- ---------Urinamplentair 'nive

f we, at any time 11 each of 20 calendar weeks m Paid ate, of $1 500, ,'I

Imore in any calendar quarter taxed 3 .2 percent an taub - millim, -I -age' . infectir. )In .. . It 1, 1 72_ --------------Estate is,, graduated rates from 3 Percent a, first SSADO of net estate in excess of 1IGO)OCIO exemption 1, 77 Percent 1, otion evSIDDID10 .0100 ; credit 4 lowed lot State death I—------------------------

t to., graduated rates train 2% percent on first $5 .000 of at jift,m access aii~6665IUo.DDO.1u,wn to, tax donee. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,ODO : $3,00D annual a

h----

Excise taxes . total------------------------------ ---------------- ------------_-------- ------ ------- ----

tax s, tot I. . . . . . . . . . . . . . . . . --------------------------------Alwhol a ------------ _ ------ -------------- -------a

,U, P,it ad . nits Issas, total . . . . . . . . . . . . . . . . . ----------------- . . ... ... . ---------------------------------

Imported replaced by Customs, fates same as domestic) ---------------- --------- ------------------------per proof gallon or me gall .. he. below proof'

.. . . . .Domestic, $10,50 _, . .. . . . . .. . . . __ . . . . . .. . . . . . . . . . . . . . . .,0

par proof gallon- . ---------------- ----------Rmtilm . I taxe'

-------_--- -------------------------------Occupatilot int s

hmemerage manufacturers of spirits . SZ5 . $50. SIDO . per year. .. . . . . .. . . . .. . . . . . . .. . .. . ..Rectifit" :

2Less than 20,TD, Prrf gallons,2II1,10 per year, ----- ---------------- ------- ------------------20 .0o) Proof If I a, a,,, Fintrie wRetail dealers in liquor or med,cma it .,Wholesall liquor dealers. $255 per year . . . . . . . . . ..---., ------ ------ -------Marn, actures of tills, $55 per y . . .. .... .... .. 7- ------ ------------------------ -------------_---------

Sitimnix, penalties etc _ ------------------------------------- ------------------ -------------_--------Still$ a, condensers manufactured. $22 Inch_ --------------------------------- -------------------- ---- __ ----

Wines . cordials, etc., taxes . total ---------------------------- ------------- ---------- _ ------ _ --------- -------

Imported ` it 1, fiohnx,. rate, . .. as domestic) ----------- _ --------------------- ----------- - - ----- . -~ ''72 a

. . .. r aS I I

ascan to .67 cents. $2.25 per wine lis lion ; 3packfing w ures . $3.40 ; artificially carbonated $2.40win

liquinns cal$1.92)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ------------------------------------------U,cap.,,.alta . . . :

Retail dealers in wines a, in wines and bell . SS4 Par y -rn--------------------------- ------------------Wholesale dealers in wines at in wines and beer, $225 par y. . .. ... .. . . . . .. .. .. .. . .. . .. . .. . ..... . . . . . . . . . . . .

--_--------_--------- ------_----------------------- ----Be., Use., total ... ... . . . .. . . . . . . . . . . . .

Importful ( 10ected by Customs, rates ..I a . domestic). . . ----------- ------_---------------- ----------,9Domestic, par barrel of 31 gallons --------------------- . .. .. . ... . . . .----- --------Ocal'a,lionat taxes :

.~,,,:!s,J1j15ppa,Y ... . . .. . . . . . ------------- ----------- ----------- - ------- ---- ::: :::2% 'T 0 ----------- ------------_---------'Do barrelsRetail dealers 1, bear . $24 per I- (include, limited retail dealers in wine, ., be.,, 1220 per morfih)~ _ .. .. . .. . .... . ...Who

linall. deal .,, in beer . $12 per ya,,_ --- ---------------------_------- . . . . . . . . . . . . . .

Tobacco taxes. total . . ........ ___. .. . . . --------_---------- -------- ---

Cigarettes, total ..... . .. ... ... .... .... ---------- I ------------------------- --------------- ------------------Small (Class A) $4 par thousand ------Large (Class 8), $8 .40 per thousand, tx,c,~17 W lia.'g, -S-4, paitth,au`._Wd xh -2- Y-,- c- b -f--- fie n

thereof ------------------------------------------ ----- -_-----------------_------ --------- ---P,.P.Y. . .ta -_----------------------- ----_---------------------

Cis-, total . . . . . . . _ ------------------------------------------ -------- __ ---------- ------

Large ciga a, total-----------------------------------------' I ------- --_--_--------------- _ ------------A %re

-l2ng W not over 211 cents each), L2.50 per thousand --------- -----------------to ---

121~: 8 O,ini eft, not over 4 cents each), $3 per thousand -------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C1 .1 C (0- 4 cents. net .,1, 6

am' P", !"T"n' ---------------------Class ED (Over 6 cents . not over 8 cent. each $1 Pat housa it - -------lg~lhj III par thousand . .. . . .. . . . . . . ------------- ~:: : : -------

'Cla",. F 1'5ca".'Ii~ is - $15 par thousand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . .. . . . . ... ..San.Class G (0-20 ... Is each) S20 par thousand --------- ---- - --- --------- ----------- ------------ -_11 cilia" .75 cents per thousand --------------- ------------------- ------ ----------_-----_---------- ---

=,.sit. . .. . .. .eit-s,c iga-,-e-6 -6 -pa-p-e-r-s-a-1-d _6g a-, atI e- I-_bI_3_. I co- I-le- ett-d- -b-y-c- u s- to- m--s-.-, -a t.-s- u__ m--e- -ai d-o-m- I- s-lic_y--------------"ga

-------------Misalian- tobacco. . . . . . . . . . . . . . . . . . .

Cigarette papers and tubes, papers one half cent per 50; tubes I ant par 50~ --- _ . .. . . . . . ------Stamp taxes an decuments,othm instruments . and playing card, total" ------- ----_--------- ----_-----------

30 .313 71S . 9558

140,671,11 1

26,209.9431121 444 .080

:043,f7 1

972 .409

3 .352 .641

431,642

16 .971 .85 1

4 . 9111) . 4923,515 .4.12

" 5: U0,.70325,001

53

aJ 610 .572

5035

40D2

177,273

17,259

157 .270

2,538206

1 .107.722

5841,097,657I .

172 .826

638

2,206 .585

1 :91 :51212

I f

12I

54 .77 5

54rogs419I

1 1 .9960.171

0.957.57721

34 .927.446637so

765

1 .5134

Fiscal year

1972

(2 )

209 .SS5 .73 7

34,925 .546

34 .916,1329 .41 4

152 .593 .187

27,710.985122 .785,357

1 .072,77 6

1,024 .069

5,126 .522

363,44 7

16 .947,036-

3 : 7' '0 : 9.

75'8' :7222,9 527 .163

259

71

21212.11 6

6465

5502

181 .223

17 .547

160,150

3 .251274

1 .167 .863

6.5391 .157,74 5

132 .87 3

69 2

2,207,273

151 .153

5. . ... .. . ... ..

54 .173

52.989493

1 .82210.215

9 .27522,585

4 .9163,6831,12G

58779

1 .1105r3

Table 3.-Intemal revenue collections by sources, fiscal years 1971 and 1972-Continued

(In thousands of dollars)

su.-frovem .

Manufacturers' excise t . .e,, tatill ----------------_ ------ -------------------------_ _ ------ -----------------

Gasoline, 4 cents par gallon . ------------- _ -------------------- ---------- ------------ . . . . . . . . . . .. . .. . .. ..... _lubricating oil, etc

, 6ants pet gallon ; cutting oil, 3 cents per Allen 23. . . . . . . . . . . . . . . . . . . ____... ... . . . . . . . . . . . .L

has hall, at in part of rubber) inner tubes and tread rubber :'u. Is".

highway type,10 cents lill pound otien, 5 can per pound except laminated ties (other than type used an highway

velre'a ----:

: --------- ------ : ----------: ---------------------------- --1 ... I In"U', It D ~,`npt . . . . .. . .. . . .. . . . . .. . .. . . . . . . . . . .T-d rub at, 5 cents par pound . ---d ------ _ ----------- . . . . . . . ... . . .. . .. . _ ---------

Motor vehicle., chassis, bodies, parts, an acassonas .. . . . . . . . . . . . . . . ... ... . . . . . .. ... .. . .

Pk,-.7.`dJ I,, lhaue' bodies, It, ., 10 percent ----------T- isPart,and ame-res, for a6lemobiies . trucks, etc ., 8 percent-

Radio and television sets, phonographs, am75

nents. etc .. 10 Pmant25 . . .--- ---------------------------------------------fi,firiyarator,, trousers . ifit-condifiDners . etc., percent ; self-contained In— I timing units, 10 percent ... . . ... ... ... . .. . .. . . . .it

Plast it, gas, and or appliances. 5 perceirt"__ . . . . . . . . . . .istX ad a .W..Phonograph aceirds Par ..t ------------------10 ptincerIA - ---------- ----- ------_--- ----------- ------ . ... . . .. . . . .Musical instruments, 10 percent"----- -------------- _ ------_------ -----------

----------------Sgrt,' pod' (other than fishing neds, -els, etc .), 10 percarill-_ . . .--------------- -------F hif its, -I ., It,., 10 percent ----------------_--------- . . .. . . . . . . . . . .. ....

Rulums and It. achme., 10 . . . . . : . . .,to it . .. . . . : . . . . .. . . . . . . . .. . .Electric 'light In . ba an tubes, 10 percent I(other than Pistils ad no aut~,,,dgeli.M rghte

-is Par I ------------------------- I -----------------ecrental Pencils, Pa., 10 Percent ; I i~',"11011ce glpensoen,lir) 10 par at (Ia-, than Ill' . . . . . . . .. . .Matches .2 cent perthourrand butnottor exceed 10 pence,tof selling pfice) ;facy wandit merwred stems,51h cents per thousand

aRetailers' excise taxes . total------- .. . . . . __ ----------------------------------------- . . . . . . . . . . . ----------

Noncommmuccaal :viatio, gasoline, 3 cents pargalkm--------------- .. .. . .. ..fianainmencl

vistron fuel other than gasoline .

7cents peg 41flon- .2.. _ . ... .. . .. .)

..at and special moZ tuel,,4 cents per gallon (in some instances cents per gallon) ------L.unw, 111 . 10 Penan -------_-------------1 . . . try etc., 10 per III --------------_-- ---------- ------------ . . . . .Furs, Id Pincent .7 --------Toilet pop. ..tior, w . . . . . . . .-Weent

Miscellaneous excise taxes, total . ~ -------------- _ -----_----------_- _ . .. . . .. . . . . . ------- . . . ... ___.. .. . . . . __

Achnisso., Issas . toul I --------------- -------- ----------------_---------- ---------------- ------------

Theaters conafts, athletic contexts . -Admissions, I

seat "'to . It 10

c:tcts. or major fraction thereof of the invount paid in excess of $1 -------------

Lease, of base, a, sea , tric or of the meant far which similar accommodations au, said . . . . . . . .Real gardens . cabarets, etc ., 1 010pance-t of total paid for admissions, somim3. htc_ .--_. . . . . . . _ . . . . . . . __

Club due, and initiation fees, ZO Percent (it dues or fees are in excess of $10 per year)In_ _ ------- _ . . . . . . . . . . . . . . . .. . ..h0 P..e. 1Telephone and le mypewnter xt ange services I percent ; wire star equipment services, 8

afli ; .15ppiacinit,hr, ich was increased from 5 percent effective July 1, 1970) ---------------------"u"IUNIZ '! "'o"'arby,

. raFiscal, an 11 Pa .

ternational air travel facilities, $3Use of a ,Sugar . approximately halkent per pound------- ----------- _ ------ . . . . . .

Narcotic and marihuana, total'-__ ----------------------------------- _ ----------_------------------ ------ . . . . .

N-ti.--------------- ------------- I ----------------- ------------------------

Manh as as --------------------- ----------------------------------------------- ---------- _ . .. . . .

lot .-* 11,111 Int inlia,$11 leldinvia,pro year, POP,, Alay or t.10I .Pne, Y1101 . . . . . .. . .apP . . ledCol.

adrivices, $250 Par device Per Yea------- _ ----------- -------------- _ . .. ------- . . . . . . . . . . . . .

Wagering I .-0tficc~u~p:tional tax, S Pei year- . -------_-----------1 0

, le,cmill.of mount vi.aad_ ----- -----:::~Use Ia.a" highway vehicles weighing over 26,009 P-los . $3 per 1 .000 Pounds put Ia ., iml-flumint P1 .111-Ins, =t,di . . .. .. . .L., an

civil aircraft . V~ per yea, with an anfifitions, 7 ants per Pound on nontur me engine power.6 over 2. units, a, 31hit

cents per po'aon turbine engine Powead . . _ ------- -------------------------------- ------ ------_----

palest, buttin and filled cheese (imported and domestic) . process at ,...start butt., ad imported .1. inalti.nnit, -1. .Firearm' transfer and occupational taxessr. . . . _ _-----------------_ -------- . . .. . . . . . . . . . . . . . . . . . ....Interest iqualization . . . . . ---

insurance---Fit ,eng.,itate foundations .

Net investment income, 4 percent-it it, usIthed Persons - ------------------------------------------ eii iniliukw ir;Ki4ifit ii percent, foundation managers fit applicable) 1

'7'nf,'~"1,N`d' 7-,it. .. . . . . . . . . . * -----------------L..... bui.rint.~Q IS on ent --------------

Taxable ..p.nditu .. to d.tim, managers (it applicable) less of $5,000 or 2-h percent of AmOu I. . . . . . . . . . . . . ... . .. .Failure to file certain n :afarsfion (aturns"'. . . ---- _ -------A-61. penalties i

asIt to annual ,parts ----------

Unclassified excise I-,_W P ------- - -------------------- . . . . . . . . . . . . . . . . . . . ------- ---------- -- - -----

6,6u.799

3,547.6188111185

541 .84023 so28 037

1,695 .112615 29094:07

129-10

- I7 .2201

-30

14 .Al-12

29 .494

292 .1(44)

Fiscel Yea,

? .487 .773

62

-17-4

8 3

221 .624 :5 3

4Z3 083221 .585

Ill 711" :556

1 .85 3

2015,183

.364 572

145.058

17 .72 D2

IZ26031989,57

24 .583

271

1972

(2 )

5,728 .65 7

3 .741,16095,47 4

626,401172 9667 :2

563 .223497 13894 :099a

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

-7 . 18-37-25

13,ii2i------------

35.771

. . .. . . 325.833

83A 391

298 .608. . . . .. ... ... ..

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

2.694,692

- 99

- isV )

- 81

-371 .650 .4"

515 .26929,45511 .,275 1J .S

1 2

466

415 14

14 . Is847

3484 .315

157 .279

20,375

161,715 .8851

.725

56 .045

117

Table 4-haternal revenue collections by principal sources, fiscal years 1940 through 1972Pit thousands Of dollars]

In,,,, and Inifit, tax IsWal's' .

Fiscal y . . . TO internal

far

P!ovmentEm tat, l

Is AI-P I

T thatto lure,$' All . he,ended

11",

1

'

1

nCorparalio Indilid .al,, jx

selgo

It 1. fall, i tax ., excise taxe sJune 30

I

cot Irtu.,

I

Telldonce. I

Plot 1,taxes

(1)

(2,

tax."(31 141 (a) (9) (10 ,

111 1 1 1 111 2 121 1 ' T D' '

1 7 1 121 111 1 1 1 1 11 111 1 1 1 1 31

9:

: 0 ~7 1

3 7

:4 J : l 4 2 53 0 ., 5 5:~.7 :~

406~ :~ ~ ~ ~0 7C :fiL7 3

73

~ , :4

''219 . . . . . . . . 4 7 .13 .0 M 11 .1 6 11 4 111 .111 1 11112 1 ~I .M1 131 .14D 1 .043 517 790 .932 771,902 821 .6 s ?

1943 . . . . . . . . .944 . . . . . . . . .

3.a22 .371 .40 .121,760

16: .298, 88

33 .027,802

:~I 6~.956

14,76G .796

: :b1 629 93 28 .261 .005

'~ ,:a1 as

1,738.372411 .41 1511, , 10

423 : 64~11 :bIll 77 11~~I :~11 71a3

11. 41 s421503,

1 :214 14 1733 :bs ,

1945. . . . . . . . . 43 .800.388 35 DGI,526 16,027,213 19 .034 311

1 ;71 1 7 1 113 011 1 3111C

111 .111 1112,111 2 212 10814

6

I :211 131 11 113 111

:,ja 1670

: : . , ~ 70 :83, : :5 26 165 1 65,519 922 171

, ,1 111 1411

9473, 1

08 . 96:7~ .Ofif sli ,: iiii 5J, :, 1 :

343,297 2,024 .365 779,291 2 .474 .762

:

237,768:, 2

1 .4 5 60: , :2 14 111,

41 11 112."I

10 174 17 .71 1 1 1 1 1 342 111 345 1 71 1 3 22 31 R111 1 .2 1 11 .14 12 1Q 463. .2If29 b s

.41J :, 5

3 :Sal,,2 :4 7 ~ : 113 '7 53~ : ~ :~: 1D 0 , : 7:3

21 5.7 '1 3

280,969

11 10 31 111 i32 11 1111 1 11 31 111 11,113 .308 4 72'a, .5 5 706,227 1 .211 11, 1 . 111 464 .836 05 3

1

14 .111''

, , : 5: l44 .~

50

~37 : :.,394

:Sal

:T11 69 2 91 .1 1 11 3 127 411 1 1 1 711~ :~~

z 1 d3 :'a 3 1

6:

2 383 6 1 7I,

,

1 _ 1 9: 31952 . . . .. . .. .j153

65,009,5861!L68 s3l

50,741,01 754. 130 .712

21,466 .9.0

511 114 11

:29'274

10732 131 217

: :4 464

2.

4 .~ 11 .413

3 3 :. J4 7

111 114

: I J,~2 542 11 111

21 .5. "

54 .91 11 6

4, 33 9 43

2 .861,7332,50; .93314 71 11,9 : : : :: ::: :

549,

.919,, 0A

54, 60,: : ,2 3546 12

:J ~Tf 611:2

~5 7623

1: 193 21

2 :, .12:83

: ., 2529

133

: :2 464

.5,

11 2tR 692 41.114 .826 18,264 .720 31 15 1 Il 6 1 1 .11M

131 .1V 2 .742 .840 1,571 .213 2 .885 .01 6sa 5 : :7 19I2 14

,1 131 111 11 .111,512

: 7 : ,35 33 42

:,. 7M 171 2 3 11 1 121 741 . 3(H 491 3 456 .013 ' :02 .19 38 01957~ . . . . . . . . go J

971:5 : 4D60 25

521 30

11 T 72

51 .5 I

fM

:, ~ ~:377 :,73 :JI, I1 4j7 7" .' '1 3

,~ 24 3 1 11 7~1,1171 :947 67

.79 7351 . 81%I .V 4

. 2S410,533 3 118.091,509

l 5 :3 11 140 .734,744

:31hi8,853.744

11410,92 51 .352,982

2MG.4613,002.096

J

:

1 .806 .816

: ,

3 14 1 15

3 .958:789

: , :, , ,16

i,997,29 2

1111 11 . 1 14 .13 11 11, 11 41 1?2 ~ 11 44 .141,711 3 1 . 15E, 539 1 .626 .34 8 3 193, 714 13 111 4 73 1 129 2 004 39 1I :fit

1 4 1L 'GRG

7 :9 .7 :941

: , :21 64 9 0

146 l 11 1

112 5%1 151

9 3921

6

: 23 1, 180 1 : 1 :1 J .7 :~~ ~:ar :I :,

63 32

91112 11 41"9

71 "'

.3"

21117 1 121

:a :49SO 594

:7 :2 '72 :035 :187 3 .341:212 1 5 7 11f 1 . 121 140 2.

'a I'2 .96 :

3

1964 ---------

,Lli:,

5 :3a5

112,260,257

5

7 71 3

78 .991 :2148

J22 1: .1613424 ., oil 12 :~117 .11 J

54 90,35415,004 .4fq;17,002 .504

2 .Ig1,1172,416,30

3 1 :441 :41~1~1, '7732 :, 7079

a ,2 .54,

~ :5 .0

6,020,54 330'

` 17 36' S' S2 .299,645

III5

1 11 410"

7 2 619 O f9

3."1

1 1 . l 4 11 ~ 71 1 .132 1 771, 6 1 4 2 111 11 1 411,Ill a13 .4.1966'~ : .

71 9611

:J I JU2 3

'~ . Is 43

~ ~ : I33

:a93 ~

22

:J 8 3~ 8

14

:0 : ~2 7, :6s9

'3

.

. '' 9116 1 flif1 '

4,IIJ5 M.M .420 34,917 825 1 71 .5959 l 26 .958 .241 3,014 :406 4,07 5 .723 2XI . 4"9

5 .47E'

34?

2 47 1: .~sis 53 :G3G,838 IBMW565

529 .896 : 20

7~:141 ~21 .111 111 1 011 .171 I .M,211 2,111.277 5 .713 .97 3

17D0

"'096322A ls Is8

33 '" :a 13s la

' '

: 417 .4,1

Ia3,65 01,5 "85

:~3, R 5 704(g .llpf4

37 :

: 03 5T115b.:O" 7.

82.68 061

1:3141:4.195If s0

13 2 ' '4 ' ' '1

1131 :0,72 :374 30 .319 :95 3 1100,752 .421 39~918,690 3 .784,283 4 :800 .482 2"a' 55

985971 1 9 :81 ~ :7 ~ 7 J43~ .04, 7321 34 .925 .546 108 .879 .186 1 43,714,00

11 5 .489,969 1 5 .110,001 1 1,201 M 5,728,657 3,901,104

Less than $500.Revised.The receipts in the serious states do of indicate the Federal tax burden of

Inch, 3 in any instances, tales 11, collected I, one State from residents ofearth

a, SUin. For axamlifi,, withholding taxes reported by employers located near

Star 0 lines may include slIN11111.1.calls .

itimOld I in

. W "a, 0 1employee,

who reside 1. rictlitlao,in . s ar Irclud,, tas on ,related business income of exempt orgarratrans,

Collection& of individual ncome to, at withhold unclad, old ..ge, sur

a" .disability . and hospital insull- 111, a an

"ll"'m pioy ..P' "0"'. Estimatedseparate Pattod

.1 totalsIn, adiv,

doll , acone, 13'

and to, oll,ag, survivors,dilabilly, Ind hospital insurance taxes are show, In the felt table on p. andaa nre led w able

fari dilidual income level and employ .man,

. I "' 'aboard "'I"tax I table 4

1 Soft or in I ..a imposud bi thee=al Inswarame C,mbilldion,

Illplo' b with aspect8, A ould, O f

Act .1. C .:of tax and to Guam

A, Samoa .~alls Cdoulct it I, Gas, and America, Samoa are combined with similar Wesports to, Office of International Operat-1 .0th-wi; B'Sion

,, with lh,.~c.ogu 1111 . 111 1,,i.tll S III I tola OIL tied to exclud :bhold I a all', ri~ I amd1lid us tax I, it to 11h: Gov ' ad I of Caere 11 a,

cordance with the provisions of PulAit Law 630, approved Aug, 1, 1950 064 slat392) . This adju a indent amounted to $10.1 odihmn for

1 971.

it in to ~Cut,Tax payment, made to banks der the Federal lax deposit system 0,the print

'Yat'. a aded in the internal revenue collection$ 10, the

,,ad in which he Federal tax deposit is purchased a, the Italy recip~sdeposwen, issued . Howe'

- so Y. I I .. Pat el.. .. led by tire net revenue it!

Iticts (no, by tax sobalfassishilp".1di'67 serve tax" . Year ,

a,,11 until the I

Us depo.i I payment

1 3 applied to the taxpayer's hataiTII, in,

hefar asamins

car cesat

the depositcry recInds, at, f-ised in the internal revenue offices withtax returns.I it,Iu,abri t,catnent

acredits allowald, on income to, to ins far hc:,t 'I" gavelim, a,

g oil tax p "Pents and for excess piym,

undo, t Fadanal in-seleContributions Act (FICA I .

- Amounts I internal revenue Is... collected an Point, Weim contacts Iran,-Ported to I he United States or cuasu it in In

0 is'. nd

"- rel u nds, or&,

backs,

and nairanses) are covered into the I lass"ry of Puerto Rica under Provisions of

12

Of , heInte-

,Rmor, ue Cod, of 1954 . the gross

. Pre . fin , , 1 ~:)M and 5314(.)(4)

1.. 1955 litnecluded 1, overall collections results (tables I through 4), beginningwith 's co

"O"'n' at' shown "P toly in to1.2 8

Includes occupati.. .l to. a . inarrdt~,cluersat

still$' rectifiers, wholculaliquor

"`~'it dealers in little, cled,clual spirits. and mm-brv-,o

manulactu ~s'olltajP,1j.1,d,1s slilupes, penalli.e.s, etc' wad tax an stillsor condensers araf. Iair 'I" U~ad

O'cu

.coal I

.an holesale and ,fail dealers I, lines

0,i

wines and hear ,jncj~,duxisc.. .. lionslit-sna b,ii-sand whoi,saleand retail theerd,olon

falls on damost,rally produced cigarette paper, and cigarette tubes;taxes collected by Customs a, imported cigars, till.. .Hes, cigarette papers andcigarette Iuma3

; air it misce11still,, tobacco collect,on s

14 Includes taxes an Passenger automobiles and light truc" which were .peahulRevenue Act at 'Iisll, .,it parts and accessories to,

Z11.101" I-y 1 . 1966 by Pu

aLaw

94 4 , and parts and acres.

so s Or t,. ks, etcmot,odes taxes on fishing equip' it, and taxes on the following .itions which

aner. .po.lad by Pub ,, Law 89-447PInmogtamb r 0 ds,.1 "1 1b."ou" and all,. machines ; mechanical pencils, P.̀Z' and bgblels~.11.udialrl~,~

fares .am. .. ..

. phonographs, component,. idc .: refingo ation, freezers,dithimar, etc

; fact'I,. gas Ind

0 d app

I's .. . S .Mncludes taxes . law at), and lobar preparations ; repeated effective June 22,1965 (Public Law

89-")11 Includes taxes on admissions to theatem, concerts, athletic contest$, realfield 'ns, can-ods, etc : repeated effective December 31 . 1965 (Public Law 89,44)foreign uns.. .rich; adulterated butte, and (sued chnse iillpolild and dome, S'i')'prancess at 'In

..led hall,, and imported oloomaign,irm: slump I...s a, d-ammls, ad .1 he, Istluninnis.; lot

bill'mqualusbar ; car, operated amusement

device, : bowling all,ys, pool his,, tc

'firearms Rance, and Pill,,, :

and private foundation, saff dealing, excess business heInto"

tax,b. ad

.

tuters. Failure to file, certain information ,fiurn,, and assessable penalties with,aspect to annual reports).

is Corporation income tax rates : Effective Jan . 1. 1965, first 925,ODO of ,I in-come normal tax of 22 Percent : not income in excess of 125 000 combined mirinaland surtax of 48 percent . Normal Is, and sort,, else . pply 1, not income dtriv .dIII calt,in exempt organizations free unrelated trade a, business . Iftectwe hn . 1,1 68, a 10 percent per an,um surcharge was added to the is (Public Law 9D-364).The ad .d to 0, . ' i.ad 10 pinc nt per annum surcharge as mile7 c 3 , 1969, by P.L . 91-53

as 0, tax .1,he. extended 1- 11, 1 1!0 by P .L . 91-1 72.1 a 5

Percent annual sta.--Hot

..1 a, to.

a. Individual income let MCI- Jan 1, 1965.

graduated rates 1- 14 percent an taxable in,,",, nor* .. !, " I 'in"Pt onamount, I taxable income over

RaR ._PjPcb.d ., rabra-zarvix. s . disability,

and-hospital insurance falls on sell-en, ,

.an, on

. "rcrml P .per romium surcharge added by Public law 11 fl~ '1111 .

In;sts, at ~3

I. Ofividii.1f.al ealandad I Do,. 31, 1 P%re

. ;Id be.. code

to June 30 . 1970 (P.L. 91-172f .1 is 5 percent annual it"

'a Rate' .1 tax I' . I' fall

. .s% tell,, lax iPait ,led ,thh. filing I, excess Of

e-Plums : Public Law 11-311, .1ocI Jul

14 3 OnI 'ehl - Firm'I'

Law "

1,12, ""'clNe January Iii .1.1.10 . I'V4`tP R p;.1N,'1 ' III tTJ6 percen ta, I a72 under th ., Rxi Act of 1971 . Old-,E, iur is and disability

I.-UE

. I .. . "Pilot

msu libm-a . itin.u, .nc and It lime. I ..

. an " it ""were '"' "c"

to a combined far rat, of 41 percont 14.2 mco at 'a, Social

S ric . ... no P - ' I.

cent tog Rospital insliancei through December 31 970 Effec

... .. ... I r I~W.

rate changed to 5 .2 pe~-t(A a

percent for ;I.Tflt~ ,nd

0 Is I-entylais

offer insurance) Far 970 and I the $t1q. applies to y* 1,7 .1,110 1, 1972 to . 0 , 0he :n.~ffeetwe January wages J, to 000 paid by the 1.

Pro artWln~ludes railroad employment tax, 9.55 percent far calendar

,na, 1171 and 9.95 to, calendar

rest,

IT 'no117 , Tax *poll:, ta=1.11and

ampro _ imposedad

tostab a

Portion at wage,. Al. ad , s

'act'tax on employers I:jrc..mp alfirit. Paid to :. PI .Y."' I I I

income .1 ...h

crop P ...n

'a,chat prolitkin rare .,ad,

at the following is I as 2ce als

par .. .-hour October1 . 1966 through Me,-

31 . 1970; 6 ,at, Pa . an Paul A Pill1,1970(hrou

7c,nl

a11j,,,In-hO"1 J oily 1, 1910

thl ough Dec ember

31, 1970 ; 6 &', P`,elra . January I through ]an, 30, 1971. Thtn .aft .,,Di'n?lemploye, and -p eye, representative will be n,t,f,,d .1 the !.IF.atir - pel-bl .I, the true to

, by !he Railroad Retirement Board (P .L. 1 -215 . title, lipillsrailroad inuplogns.fopresentafive tax,, 19.1apettent tar calendar Year 1970 and 19.9percent

"'. . I year, 1 171 all 9?2

nt..bl . portion of wages ,

a ad Iranat

or,a I finks ad bonds . repeated, effective Jan. 1, 1966.

.,Ids of conveyances; $100 to $500, 55 cents. each additional $500 a, tractionthereof , 55 cents; Isolated effective all

'Itc .1fing oil . repeated Jan . 1, 1966 ~Pumli`cyl_'.~'899"44) .R P. ' it e,,mb :,,I1,.II7I under 11 . la-me Act of 1971 .' Z,D, ,

.Is Rep.. Hall 22, 1965 (Public Law 8944) .'-A , ciandtiona, it effective May 15 . 1965, Raftigaist. .. and heno-P ad. OR

iw

a. I

active June 2.1. 1 65 (Public L .17 Repealed, effective Jan. 1 . 1966 (Public Law 8944)

.Is RIP

.'

led, Iffleby. rumm, Dee . 31, 1965 ( ! uhire Law"

-44).as , 'is tax was continued at 10 price "

by I orIt resolution (Public Law 90-285),

.ad the Revenue and Upeaddula Control Act .1 run . 28,1968 (PUbli, Law 90-364),which .,land.it Rhisprate through Dec. 31, 1969. 7h

i. rate we . further extended .

to Del. 3 , 1972 by L . 614 .Narcotics. Icent par rccifiumft on, handled . f4a,Ih 0.0. .

$1 on, once; ..,in oks.2c

let,eac h

. Amount, a

he an at . includeoccupational taxes levied an manufacturers . dealers, and practitioners . Repeated1 5],ft,,.ct,ve May 1, aw,9 - 13) .

Retinal .it .0 1(PubhcL,

5 (Pidalk Law 89-44),'c" . July 'raAd.Ita-t.d th"Ll: 10

card, P

., p. . . it. Process valind bull ., ; i,', coalon, Pound . Domestic dled chease : I cen

Iper pound . Impoited filled cheese : 8

cents par pound Impa led adulterated butter and oleomargarine : 15 cent perpound . IxcupetL alisaas are levied an manufacturers,, dealers in (base products.ad

ate nluded I

P the amounts shown.re),3,Transfors of or.,hire Runs, short.b,rn,,.Ieit 1,=~ 11 . . .. ...; lc, . 1200 each :

,in Runs with combination shotgun , it nfl.

and oth s pacr,l types . IR-arms, $5 each. Gaup,t coal taxes are levied it mon,tichunans, reporters, OrI1 .1- in Ineurt, and incl .d .d I,, c . ... n shownO,a th

I-Negal1w . figures (excluding On a .Il .cti..s, at . . Primarily 1' . . noatack credit, taken on certain talls I .P.M.d by the Ellis, Tax Reduction AU ofJIGS

112 113

Table S.-Internal revenue refunds Including Interest(in thourcends of dollars )

Internal reacrue regions, districts, StatesAand other

(States ramasented by single districts indicated i nparenthesis ; boul to, the, States Thman 0 botto

m

of table)

it n

Total xCorporatio n

incoure

2)

Individual Income and

.employment taxes

Enexiiii . Other zprepayment I

(3) (4)

Estat e

5)

Gift W-1 -

7)

Wind State., total ----------------------- 18,IDD,6g, 2v$% ;40y 13,75D .962 891,555 !2,702 7,501 1,373,61ficurth-AtIamfl, Xi con ... . . ..... . . .. ... . .. . .. ..rAll S

3,054,013 762 .645 2.164 .821

_

IS 7.

____

14 .237385

33 155an (C) below )pamy .,_

- ------ (Mai )""

:-111

121 .943 D871:

110.675 2 :408521 2

,15D------ ne . . . .

1 Anessuchull"s63 .409 7 154 54 .655 1 .351 196 3 5 9

. . . . .--- -. . . . . : : :: : :: be,..8 1 :123

579 79685.1.775 17

403 .0941 77 51

12 .7651 402

1

1,40 3

3

' '

34 2 .23 9

1 ,(Ine c.),,b)l'in . !!):::

(v 3'14

31 .109

53:554

3 .586

: 7

317 9 52 5 4

3 1

:6345311

'

1: 1 5 2

70143

16 5Hartford -- -Manhattan

332 .33 1891 08

75 .16 242 7 601

823 : 2024

: .7

33 202

1.700

S 70971

8309

:new . . . . . .

-

:54 348

4 :a" 48 : T7

.913

.129

1751

1 36614

Rhode

Pr.,id.,,. -------- -Mid IAti i R k

94,462 21,702 70 764

1,774 208 26 105- .. , ,, ci.... ...... .. ... .-Baltimore . . -------- lI111"' I ' -

2,559 .13721151

425,4451 1

1 ' 3'931 29

373 0 ,52 753

2"

7 .2931 7

' '

912703

90 .445sN ) .;me bj~

Newark

---- me

:759 066

27 :170 , :7g

144 .

5 52: 42

77 574:944

fill 062

i ~as t.) ...

(San "): ::::

622,593090

3 .

114 :1417B454

480:24825

14 .192990 32 12,871

Riclum . d. ------ - :288 86 7

2"

289 2257 420

526 196

1 .2

39704

2985

1 .21 7

So

"Hom"r- --------I

262 . 44 :21 095.

34 .617 2 .042 - 6 62,961

49011-111) - -----------,--, act

1 .663 31300 171

192 .34221143

1.401 .819

13 324342 MR)8 159

3.75432

ON 15 .133Bi'mirilleen .-

(Alabama) :

- : :::::173 4 21

:5~ ~13

.

1291 1 111

5,83417 3Columbia.. Is.u. Car.

"a,* *

:3912, ~

264 65212,764 13 :069 2 :994 194 3 393

lk" ! :-:: : :::

96 109:171375

1 1, :411 5 .794 429 13 7,08D.jacksonuill---------- (Florida) 79349D

523

55 31 8

7 7 ~42 5

12 . M2,589

18.6741, 7 3M

22500

27 81 12 1

R.Inill" ---- (Tennessee)... . .Contra, R

. l

:218 IGS

:07 023 187 .368 6 .194 563 A

,969go- --------------- -

C bl**I

:154IN.

358 024:

1.959 .783 49 336 5,3g4 M 1,040,859:.) ,

~d b. . .

C .land an

1163572,614

69 94 714

M.098

41 .9117:9619.656

54 3R33

1

861

3,660

' '"Detroit- . . . . . . . . . . . . .Indian poli-

4.466'

1.9:060 670 306

11 171

:4166

198 :1 .028 8So-------- -L.Ui.ill------------- ~Kertiicky)- . . . . . . . . .

,13 .362172,795

34 :4791 2 995

:320 94 1152 469

11 :139

4 173041

3 919

4 .133,Wast Virginia 93,412

6 .917

:99 081

:1 KIS 402 98

2.63499---------

a

2 .405,76729 176

'456 33 1

1

1,

,U6 909 56.961 5,193 392 19,980

Chk ----- ----.

991 4031 :73 1gg

191 113 1 .20 79

1;r -0Due oin .a ...--..... (Imea) .

.794157 M

.0.5,1

14

2.069 1,569 11. 1.274. . . . ...... . ...

. flimll D.k -) ------

.

IT ' '2 22

4

0.32625 065

4 .64 11 10

507 12yaH.,'Cj _::::::jj . . .(Wiscomain) ..---------- 311 : 754

54207 M 003

. 0967

1

4 3579 98 91 0

one .h._.... ... ..

St L i ::: (Nlft ke) ------------94 .403 16,419 73,164

:I RSO 389 5 537. ou s -------- ~ ~M=t).):: -------- -

St Paul351,955 71

R "'927

1877 91 10.296. .. . . . . .. ... ..

S r .Id (Sea (b331 .924 81) : . 242 :949

:6 $69 622 19 35 5

soang V, . . .. ..... )se

let " -

198 .4501 655 301

2425 :

117~111 1 1 527 5:353

---------------------------- --------- -ALbuquerq. .. .. . . . . .

. (Now MIXi. ,

66 159

2 27~2 492

1 " . sys

55 116

:184 51906 4,316 6122 5t

Austin . - r ll,) I 1 1: : : : : : : : :Cb ;= : : : : : : : :

:413 1 96: 253

,34 93 5

7

1,76616,720

M957

11 604

6 91562.inion ',_ _

.ynm.bWo )

S. 1(20 .875 1,172

:18 760 823 95 12

.

14l w.d

n)!Ccllr

338,240301173

62 Age:

252 71~

14,588 1,497 3 .871 2,74 5. . . .Little Rock.New (Lou

:17

2',21 1

12 8898,292

7511

41715 ..311 4

11 114:47112 97

6

1366562

4 19841

12,110

OklahamsCi y . .---- (Oklinorne) . . . . . . . ..

14,'575

:17 066

:123534 43' 431 105

326695Wkhiu. . . .. (Kimses) . . . . . . .

West.. RxxzIwa ::::::-:: - -141 .205

3 sm74,51 5436 990

110,836970

4,40554 941 21 498-- ------ ------------- -- .:60

.2 47

2 . .019731 05

92,9961 107

10 .1115

523 25,695got..- ------

"4' '

:14

7 '

.

39,2112.

I "

.93

. . --------- -9

76IDS

coa la ""H40:013

1 .S47 36,297 :1 780 344 5 51

Los Dine (11 ll*)77,34 5

1 I 47

' 12355 3 61 1Phomn._ Do. . -

I . . . . . . :::: ::::". ns141 :111

202 411 :8113

1 .1 31,

go:3!1 3

4 834

4,606377

17213

1, .648

Rldhoid . ... . .. (.,Tn) .. .. . . . . . .dI .9f ,91

3' ... 4, :669 6 :179 550

131 .53 4'

: 183

'1 '1 723 196

1

49 63

( )776

920

I 9~12

07 : 37

~ :2

1082 2 62

Seall .-7f : :--- l..hm, .~x :010% of Internall-I ow.ti . . ... . . . . . . -----

.279 .080Rdg95 .

4 .52924 .01 610 453

757 '670243 .33 776 177

25 .579N7 822

2 .610899an

2010 .102I~ 123

do Fit- . . ... .. .... . -------------------8 325

I .,

38 16 :003.

1 . " - --- --------

373338Caro i,he . . . .. ... . ..

La b i ti il77. 11 1!,!! 10 .174 5 3 77

-2731

nn, u r ca ng oifurecou of

Couphis.. . . ... ..... ... ... . . . . . . . . ..

'W596

1 413

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

.L

447:332 --- ------- . . ....I

.9 .13. . . . . . . . . . . . . . . .. ...

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

I--- ----------- -------------- I1' .

Total for States not sisman aboam

(t) Ciflikerii. ... . . . . 2 .577 02 12. 3 159 411'

763

7 216 25(b) Illim,ti. -N 079

:325 :

828 3 319

6104

2: 096 175 75(c) o. York

t Ohi : ::::74 1 564 469

:1 :324

WS52 646

t0 .

5217 21 .420o --- ----

-(i ) .(of P- . I

730:

114 1 08771 11 117 2 .312 4

14410. . . . . . ... .as0) 1 ..

996 .673801 .221)

190 .703

159 .097

7 6 9 :SGG20,09 1

600.691 31 .310112,2292 .4411

6 13 .975

:=1 .

4 .307

I- than jSaLExcludes 80 .725 undelmorable refund checks totaling 1114,082,00Q.m:ud. crVib, for axe= Social Swcorill Paymnects under the Federal Insurance Contributions Act (FICA) of $447,332ADO.im

consu

its far art .,- ""'IT-mid Ulu, stims .11taxber. 'rigismaximI PFigures it W leffecl entsnot ad . is he

ties 1. 11447,332D"W'7M.'sedetal Old Al. unit Sou-11, Federal Disab1fiV,, ard Federal HoTitsl Insurance Trust Fundsfrom the Highway Trust Fund amounting to $144 .325,ODO : ard from the unemployment Trust undramountongto 13,3&Z,ODO .

Table 6-4riternal revenue refunds issued by regions, districts, States and other areas

lcdi,idu.1 in ... andInternal millon,; districts, States and othe r

mr, Corporationemployment taxes

Total income Estate Gift Eni n(State, represented by single districts indicated in Eic-N . Othe r

punthes. ; total for the, State, shown at but .him of table)

pr.p,y ..ctx '

(1) (2) (3) (4) (5) (6)

United States, total ----------------------- 55,154,993 268,559 53 .203 .911 1 .619,717 15,346 21110 45 .34

North-A"lantic Region --- -------- . . ... ... --Albany~ ------ ------ (Sea (c) below) ---------

8,441 .148510.224

51,4N2,025

8,136,201494.692

743'Z8513.190

2 .99 1166

35611

6.90914 0

Augusta --------- (Maine).--------------Boston -------------- (Massaichu"Its)-------

273.2031 .675.151

1 .34 210 .741

263 .52 71 .619 .623

8.06343.543

97522

751

16767 1

Wcoikly-- -------- lSm, ji) below) _B.Iff .t.-- ---------- (San (c) below) ---------

1,821 .9681,000 .971

6 .4346 .424

1 .767,600964.818

46.49428142

58012'

4137

81 9630

Burlington-------- - (V.'nmmU- ----------- 122 .517 652 117 .268 4 SD7 327

5 1Hurttord ------------- (Connecticut)- . . . . ..Manhattan----------- (San (c) below) ----

932 .27 41 .562 .264

5 .58414 .117

897 .8631 .111 11'

26.46059.507

29071 1 113 1

:9 22 3D 5

PortsmouthP-1deme------- :- : ~R"hme"l -------

Mid-Ati-tic Region- . . . . . . . ------------------

8~ 88 232 123 .69 4

131

14

1. '73

2 .17433 52

:111391

8 .314~507062 750

6,0616

214171580

, 2

2 .06560

91 1

Z24

so15 . is

Z3 3Baltimore ----------- (Maryland & D .C.) -----: 1 :5 :311 5 :675 111 9 111 71411 376 43

'13

Newark-------------- (No. -------: . : ::h 'Imr le b,,,w~Philadelp ia

2 :104 0758

2

0"

73E

3

:0 :5,33

2 .02,840

~7:11352143

7

42340

,

491 .71 .430

29,_ _ . cw : : : ..... .

Pittsburgh-(Sa. (" )

. .152 .798 9383 1 .221 .473 26 Gas 260 14 42 5Richmond ------ ginin) -- -Wilium on ---- (D.hnavc) -

t r

1 . 1 104

1 11

15

:4 16

17 '110:544233

3 .3: .41.1. . .32

3714

840256Son.

eas egion------------------------------ -amili. .. . . .. . . .. .. ...,

07 57, 11 71 .159 .

5156415 .OD6

1 11 71Sill1 :1, .,:4. . .

:7"3!14"

1 .48 9156

15'31

S'.

1 19 . 2,. b

rinnugh (A . a .. ------------ 779 "12

515753.701 21 .8' 94 33 4 "

C .t..bi---------- ~S-ulh Ciamini,i) --- -Gneensloom- ----- North ------

6 . 11 .241,73592

2.2745,646

615.9901 .2"

15.922K .266

1

22 1452

'97 2Jackson ------------- (Mississippi) ---- --. . . 426,307

' 53':U . 3" 114

" 11 147 6

lacksonxille--------- (Florida) -----------48 8

1 .83& :29 11 I.X0 000

:1

fil' IT 16, lig,1 .3

54No hvill- . . . ------- (Tennessee) . ... . .C an

ftral Begin ------- ---- 99 515857 931 .5773 .405

295

31

961 .927,SU,981

21 .41 41",168

194

I'll,

29141

1

4 .21-0Cincinnati. . . . ~S I Id I I Wma) ~ . . . .. ..C lax a Is, d - - ~ - S*~ (d) below) --- _ ---

:1243 .131

1,725 . 1.0

:30519. 783

.2,04 :559i .672 511

3 :33541 797

2. 9287

2434

60769 8

Detroit --- Ilichillim)------------ -"

2 .432 .993 1 9512

2 11 146 1"1- 3"

33 1 . 30 DIndia,apoi Indiana) . . . -------- -tm,mill.~ ---------- (Kentuck

1 .371 .44 1735,201

4887

2 .802

1 :3 :30 238

703,4073~13

23,161

233

144 1.111 46791

I aat 'i "i"i

34 2 3 .

1 .5136 412.G20 9,354 59I ,

193

MidwestAbend! an.. . . . ------- (~~tw --- . . . . .7 .7 7 9

54'

43,170174

7,483,751132 114

243:361 2,67 167

1n6

6. 32

1 4

: is . (b) below). . ------C' ~c Ziw -

2,4&4 .23!1

,

3 .055

341

:2,391 a04

7W.0526 1

706 1521"1

3i e'.

Fin, ~4*1*1'h '127 : 7583,

55'

61 .404

5" "

.7 3

" "

36 5

65

4D 11 311 1sent.

(Wisconsin) ----- ------ 1 .148 .943 7.071 Ap 47 87: 31 :7 .5 311

853 $t oOman . . . . . . (N,b k.) :: : : : : : :: : : :

'In. ... . . . . . . . . . . ftxaxuml)~

1 153 :995197 065 1

:8931031

333 .3241 .140.920

18,09 736.626

2386

2994

4 11. 038

SI: Pop; . . . . . . . (Mummict.)- . . . . . . . . 1 . 986 . 6765. 662 947 098

' "273 47

1 , 1Springfield . . . . . . . . . . (Sea (b) below).,, ----- 720 .9662. 794

:694 638 22 :112

...35 6 2 5

Smithwest Region . . . .. --------------------- --- 6,162,417 27,251 5 . "Z2 044201,"7

1 .660 364 9,93 1: : : : 1,S:.w(M1,1.-w-,: : : : : :: ::Austin_ I in 217 :933 1

642 36 81 "1.251 24'1 .5 .2.677,351

47 .97470

3471 696 1905 .603

Cheyromn,- . . ." '6;De las- .- ~Siy"(f~'& -1:

it99

24'1,4727

7126.107

ai .

1 .137 .84':531

432 W 3437D1 669 1,411,11,

D...e ~C*lkuldo) - ------ .. . .Little Roik_ Arkansas)-: . . . . . . ----

629,24 5414 173

2 .9271,933

607. 107397.924

18.44 114 13

20412 11is

52 2322

Ms. Orleans %muisia a) -----" . :,28

3.559 1513.1.1:23194

"53D 9G6

Oklahoma City------ : : Oklahoma) . . . . . . ---- -W1,hil. -------- (K.-) . . . . . . . . . . .

596 .54512'

2.336

2 "'

572.641499,426

20 .90922.341

1962 1l

5 524

408

I,..

torn Region ------- ------- -- . . . . . . ---9 .'

.2 45 :630S

. 9Z7 787 27811

'

n3,0 3n 7J37

Anchorage ----------- (Alaska)_ ------- -B .i se ------------ - 11,1111) --------------- 17S .72!) .,072

:71 11 3169, 8

56

:1 41 '7,83'

6

56

. . . . . .. . . . . .i 196

96: _ :Hot . . . . . . . .. . .. . Mmit..). - -------- -Honolulu. . ------

':: i'

172 .11 1

' '

1 .2731 .567

163ADI225~ 315 7 .4587 .453

76,7

1291as1

91'Los Angeles ----- : : : : ~s 4 )

Phoenix------------- (A'i'omi)-----------

3 .677 :5 36

503 465

18,433 3 .5GO 590411

00

94,7 52

"I

1,30 1

11N

124

19

2 .356234

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

111, ---------------- (fi-dil). . . . . .(Utah) : : : : : : : :Sell Lake City.. . .

.645 255168 :79288 976

3 967

695

1 23'

61 24

163 01 6

'9."'

2f :52 8

4 .94 3

11 3

'

o2674

2I9

131

235: :San I (See (2) below) . . . . . . . . 2 .391 fll

: ., U 119 8,111! :79 312 893 99 2.23

Seattle"hu"W" )_W1 .6 (W ii~ --------- -Office of

Worrell Written--------------

:920 811M .312

5.145643

am 358159'.923

29 .98 723 519

283213

225

923So

Puerto Rkco- . ----------- - ----- I ------ ---------------- --- -Oth

11 .114143 .

593 16' .7 29:113.3 .940 9372N,' ---------- 3

2169

(a) Caldmnia. . --------Hit 111m.1Z ------------(0 New York -----~d) ON . .. . . ---- : : : : :pimu", ..or. . . . . . . .

I as --------------

I Net of 8D,725 undelsverable refund checks .

Total for State, W shown iflimi n

6 .068,9963 195 1014 :895 :4262 968 .1493 .347 .9462 .331,663

is: '949i t29.540

126-12GS112.359

1 $59 532,,

: Bit:0424 .712 .016

2 :171 :1713254 31 3

2 .720,570

174 :06A80 187

147 .83371 '317.

:13,90 .857

2 .194988

1 .93Z496

6M677

222117212

5863

155

4 .619

1:949

3 1941 3051

W7 .045

114115

Table 7.-Number of returns filed, by internal revenue regions, districts, States, and other areas

Internal revenue regions, districts . State, and other

areas (States represented by single districts in -dicated in Parentheses : totals for other State sshown at bottom of table.)

otal

1

Individua lincome tax

2)

Corporatio nincome tax

1)

Partner.ship

4)

D.cle'sti.of esti.

mated taxand .11othe r

;nc.,,,,,.as

S)

EmploymentUses

6)

EstateIs.

7)

GiftUn,

8)

Exemtaxes

9 )

United States, total . . . . . . . . . . _ ------- _ 112 .DDD,449 75,906,367 1 880.819 1 D29,214 9,582,326 22 .007,335 192,833 190 .743 1,310,812

North-Atiantic Region,,-. ----------- -- --- 17,11131 A21 It 800,1)111 110,727 135 610 1 .1 17 18411 3 .1 16

11 111 34 111 11 171; : : : :Albany------------ (San (c) hot. .August, . . . (Main.) . ~ _ -- -Boston . . . . . . . . . . (Marso'h.setts 1

~13,547

53

3. IN72c29 o

650 .543

' . IN13 :76

19, 77 G

a!:! - 174'

7 083

1 a2'?41 ~21

,S ~21 0

1322 :,1?1 11

:191 452113.679117 111

, : isl

9361 .41l

1 : 1 .

794I 1 71

:12 1 6 68 .442

21 111a"ok (a., (c) below)---- --- -

"3.6 0 33.6 2 .492.028 811 .115

2 HU 2'

.~'3 : 7I 1

'

. I7 7 ~ ' 25 a :.874

1

Duffel (See (c) below )0,

------

2,452,07 964 11

8

1,743.2711 61 111

44 1 15 :02.50

11 .2 NI

lati,l.21 .515

1 13,74 759,341

5 :21 1454

3 .61 6419

"867264He'll .

"'

. ::: ::

:0Z 04 8

5,:' 31,2-

2 ai~. 967 11 111 1

11, 1341 .214 4 .nll 4 .0 7

17 .IN

Manhltl,"- Ise,. 11, below) -----a 7

"N2 .163,D03 12E, 749

'I :aa 4, :1 '1 961 .986 7,799

. ,11 .7

al . I,, :::::::Pmumo .

New lismPshilel ------ -fahord eP,axidan

c . .. . ... . . alime)_ -------

all 35,7, ~"aD

211. a I"4 :43. -"1 Sa 5 1

2 .431

31 :81113ZI1.7

72

5'4

17 "7

7 G 7 4Mid-Ati-fi,flein, n- ----------- ----- 16 M,233 10,998 .057 2661273 122~106 11,779 .894 2,933

.279 27 .077 73 .367 149 .2'Baltmer,

'(Maryland & D .C .) ----- -

- -

:2719 111 1 a1 711 41 a10 11 1 1 1 11 131 111 11 1 3 117 4 315 23 .2.2

Newark-- . : r: : : : :---- -Philadelphia_ .. . . Tow

Pittsburgh (So, below). --------

:43'~b'I, :111 :1 1

'82 031

: 4a9 1

1:~151:4121

1 23 8

~ '9103141 :0171212

~ 43, :,

2111 4" 552

,364:291

31 1~1l89 ]a

. :. ,71 1

717 :17~7a', '

: .4 ,a1:11

93 383

:a 335

1 :41412, 133 .11 0351,17 17 90

Richmond .-

2,359,164 1,641 .354 30,548 11 .111 164,113 476 all 3,17S a .7V 25 .81 4S. . mrl~ ~ . . . . . . . . . . .Wilmin on : : : : : : :- 327 .7791' 8

9D 53 6

~6 5212 4875 669

7 :61 2236 069

1 1.1

1 4 1 19

31 a2 1

044

:I ",

3Is

7

1747 3 . 1 1

. .. ... fluxis .

.2,327 .6729,1,555,261 34,225

719 :b29

1, 892141 .432

3 . 29,133541 411

.52 32I D1I

25 .9594

10

1,'.53 6

14 1 1Birmingham Al.las ner

. .. .. . .. 1542 .643 1,045 .970 " 397 12 19 86 .824

: 2351 9, :128

:,184

: 5IS 7 1Co

. iumbe_ (South Carolina). . . . ..Dr ..(North Carolina )

u ab" .- -----

314I M :4

~q2 la ,

7.37?:33a!

17 :a5 ."

7"

S :2

0 ."149

GIl1111 1

211..Ill 011 I2 .911 4,086 29 33 1

Jackss'ssippi)

928 .755 598 .815 12.3 IS

10 .003 53,828 232 :613 937 1 .2758

.cksanv Fir, Id .) ----------- -Nashvilla~ (I comb-c' .

,165,03 1

."'2 '

.654,36 5

1 37 "'

5.6~3

20 785

431'a :06 '1

41" :77 12a

4 4aS3040

N 7a

2 3 2: 09'22, 890

24 .846Can fret Region -------- 1 :047,21.1 U1 .632~I35 716~21 4 114 .118 1,1 77 ,6112,690

.291 22 .98721 .

&B41 71

'Cmannati --------- (See (it) belowi ------ _C er

1) below) -- -a. g

alviih(i ofE.Ir

. I ---

2,385~6183 41 :7, :I 134

02 Sol

1 .675 .06 71 :21,1 :61 7is 135

31 :11452 31 36

13m,4 :42D

534 .6515

201 .18 92nI .Il f333~794

4"17 :3512 2SI

764 .892

4,12653':' S5

3,52251

2654

27:46 3

33 1444

:a',

India Ilan. net--- ---------- -K,n I,." k

2 .654 .21 61 . 141 .laa

1 :0891 :43695966 34 :2 6193499

:?11,N4 20

121 :91508 140

461 196313 :009

4 .IN2Z83

3 .73532.20

33 ' 7:42220

Park bq~% . . . . . . (West Virginia)--~13 '150 562 .812 10,459 7,833

56 002 1610011 .014 945 13 114Midwest R Nunn

. . 11 .141 III If 111 11l 141 .116 158 .623 1,443,203 089,4113, 36,492 31,470~1, 4

2 40Abe,dne. . .. . . . . . . .

, :5 832

' :" 089 4,538 2,783 15,006 82.405

. ..

gag 8,1

69C ye.g.__ ------ (So. (b) below) -------- -h 'Des Moines . .__

4.7935 .11171 . I S

'1

3,355~7341,114 711

77,73 32 1 19

54 .563

" 7'j

6 .640

'" ''

763,71 2

. . . 1 1 '

9 .07513

aH

80 23,603

37 .03824 .81 1

F. go ------- __: :

~' '

' '71

:"1 2's 3 :963 :3 ~1 22 : 480 : 311 13 7 .73 C 7 .171

M ituka.- . . ::: : : : W" 0 u 1, u). . . . --------Oushe ...... .. .... IN car asks).

2 .438.71 0

4 "'

1,673~48355S .147

41,12 7

12 093

21 :17 4b ~2f 2721 14122 :a

0

12,1 :2%7la a 4:411, 78 4 :11 13

1

4M,763

" 2 1I

I

. L. is. ... . .. . . . (Missouri) .St

Paul ----------- (Minnesota) -----

-

2.55059

3 1 1

'

. .

685 .61

7

.3

4' :

21,154

,, .a,

12.105223 .765

'1

535 .91 5

3 51

~, 2.70

4 4

3 24,22 997

:34 4 .130 600

mmiffield -------- (See Bar below) --- :: : : :: ~I

115a 26

1 ~

. " :...72 002 5 .957 7 .132T 11 1 3.2 21 :90 64:

603:2 9

54

:19 069

Southwest Begin. . .. . 1%T11,23, 1 24 0111, U12 .124 14L 300 968 843 1, 131 11 19,543 26 .190 220 .5&3. ..1bassurie've_ : .I. B

3,443 1 19

3 3 7:

3 7'."0,1nl 1 "'44 :5

"' :'5 43(1 gG 3' : 7'230 .1153

, :1, "

'721,..527

4.14'

1 .1416,251

7~11a41 111

C b.. W if 6~

20f24 .alb TAG, 2 .167 15,703 49,124 337

.2 ~ :22 5

1,11*i ----------ado) ------

2 . .19 66891 .276 .347

1,708 .338960.83C,

33 aSo19 905

11 :11"

21 .717

3.1 :1 125 199

1174':G' 1 211S2 2.9

41:09.IS91 6

~A,kxolxl) . . . .. __ -- -L t

HI Ine i -e 9 " "'

511 11 1 1 3 5gl 1 6 .1 13 446 211 114 11 5

1 111 1 1 Ufgat:: : : : :N

wOfles; , Lmirxixrx)~ ------------

011,1 -Exist,... Cd. '

1,144 :46a1 .3fl .aEl

:~ ~. . .

'4 G

864"0

~ :'2

" 172

1 fl~ a

11 441

, :ID74 5

1 0 1 3al

:'86 6041~1,291

:559

2,244

:~5'

3 .006

~ : ~3

"24 .44 7: : : : : ~ ~At, h it . . ... . . K n .na) .

West.,. Regimi- :_ -------------1 .244~005

11 31 7 * 11180 5a g

11.271 214

". at0

2411 .143

:at,

0 82i2

6

0 7 :~ ,

1 .410 745

7'2399

3,342 .1913 .29129,086

3,41 726,590

70 .33 4220 478

Arechumag. .. . . . . . . . (Alaska) .lidsho)__

147 :

203395,315

'o' : ,

258, 21326 8602 :31 77

1 :75 2

4

6~183

2 115

28 .54311

3 "

86

1

89

'1'

4 :445 98

I f1. u (Mo. "

" 11 402 .015 257 .500 6. ", :

4 540, :3 832

:98 41h A 1, 1

as9 .

. .)

H-1.1 . . . . . . . __ 'Hawai -Los An

gel- ------ is,, a) b,.Io,)-

4 " ." a.~IS.192

301 :911 14 1, Is 7 :~1717aS3 3 :41 1a, 143 16

: . 1547 755

73 7811 .230 958

50 111,313

9518.25 ,

1 .8 369 . 236ph,

enix .-. . . . . . . . . . (Alilons) ------ -Per fland ------- I

Diego,) 982 :531,387 7621

681,72 5900 162

14,725

51

31 15,

7,30739 .538

83 .05 4120,853

:181 603263 .374 1 :9,507

1 .78D2.357

10 .798

20 064Soon _ . . . (Nevada). . . . . . . . . . . --- 3 13,185 217 :60 ..9 3 .469 21 .359 57 .267 308 489

:6 80 3

ity`c

h) . . . . . . . . . . ----- -T" '

35 4 .866 371 .373

9 "" NN41 4

3'100 120 53B 2

9 I

a.. Sea is) hot..) -------- -a

S.Ot!. .. . ... ----- (Washington). . . . . . . . . . .

1 24 171:157:0

3 .2'1164 :2'02

42:! 1 12a

592Is20 .752

:QI Boo151,743

: ~if 71 98

4 71311

S .70 4

1,7 "7 .3691 .31 1

1, :'Z3712!office of intm .~ -

'"I'l 0 . 'firm.. .

11 1a7 174 4 11 2_3103 211 31~'1, . ft~

'13,

Puerto Rwo__ . . . . . .Oth- .. . . ... .. . .. . . . . . . . .

:2 7 7

32398 .900

73 :73 ,

301 .20a 1.01

2 .002 1 236 154 3

28,396 1143,979

4,932 12 4

769 155

414 16 1

943

California. . . -------

(it) Ohio ----- ---------Pimasyl-is-------I ~ ------------

11,3981

6'3.1a~:611.0

'45,632.3 916.2.0 36 32 : 1

.13 75

Total for States not she- so . . .

7 " : " "1

:1421'367 .053 .850

3,965 .7244 :~35181 23314 .4

126 .24793 .6 9

290AS?90 47

7' "'8 3 :(]67

141 .47472.386

89-58439,4G451,43675

.060

,tl,ltld far de,1s,suars, not moil .tals by district ..it I " a470 this

" 14708 not available by districts to, lal

Includes FN-s7

004'.

7DO5, t' ot .1ne, 1120L and M, "0 . 990C,990Pàu`d`mtO'T not available by districts.

" 3 - "'50312994 :132467

'~O

56T036440,590

2 2 :1I: D'70 , 413

1 .233 :1 3aaa 593

1 .100 .1461,359 .199

20,01713,67823 .0321 :~41

fG 118,517

15 .62611 .64621 .1451 :73 "S 13

11 .49a

122 .87156 10788: 92661,407

64 36996.215

77able S .-Internal Revenue Collections, Costs, Employees, and U . S. Populations, 1943 through 1972

Operating Cost of Population TiesNumber of employee s

Fiscal Year cost C.Ilectimes olle,fin g1100

(Thousands) Ponimit. Total National Field

Off"n

(1) (21 131 (4) (5) (6) (7) fill

------- 3 '1 ''3

2 .171 116 111 0 44"N

11 13 3 . 13 3~1 31 96 1-------

129 4 J 4:I a1

: 0 :0 1, ,Z34 1 0 :32 :Ia 1

:S. C4 7 .

:4

2N

.41,898

1945. . . .. . . . . . . . . . . . . . . 145,390 .720 43.800 117 111 O al I "14 3 " 11 41 I I 4 , 41

37194G 111 11 .64 0

5

~ ~~A40,67?

~C 1 12SI

~I' .~ IIn a ' f'54

~Sa54 91947 -----------

:6,82 2203 91 39.108 .385 .742 0 .52 144 698 270.28 52 :8 .30 4 771 48,05 9194F ---------- ------ ---- -

949--------------- ---183,73LOG O209,205 .715

41 .964 .54.1 .29540.463,125,019

1 :4 1D 5, 147 20 8149 .767

284.39270.17

5 .',14 35 ; .266

4 6624 .554 a

7 :447 7N

1950 -------------- 230,408 .200' "NU'1 A N ' ` ' '

314 3 11 141951 -------------- -------- 45,869 .533 0 4 54 :311 B 1 J111 IS H3

"~ 5'B~0

4,1I

'' l 172 111 III, G61~ 19 0 .42 157 .553 412.G2 55,37D 3 .844 5 11531954 ------------- -----------

~P, : .. :806

268,969 .107

:

68G 35,3M9

69,919.990 .791

0 .3 30 .33

4~a

12N"

435,00428.89

53,46 351 .411

831 :707

"

:S1 a

49,704

71 34 271; 1 11 .21, 1,, 1 420'1N1 ' 'D

2 17'

a56 :,iya :.94

11

:I" : G

7 1 1 1 110 :4 11.0 3 1 44 1N I

8 250

: 5 .3 IS 01 1~ ~ .7 . ' 1

00'OX 171,994 46G.16 151 .3

' 11 219581959 ------

337 .428 .789355 .469 .229

79 .978A76,43473 .797

.972NG 0 4'[1~4al 3074 ."I77'a

33

4":73448

'Bso a t

2002 :2112,G33

4 815 841 .56

7

1960. --------- 363.735 .359 714 2 1 11 1"

1 41 11 171:1 ' ' " "

1. 112 41 11 11961_ --------_------------ 413,295 .238

Ol : :94 0

8:4 6

:B 44 Is,69

".3 11 IN.3

0, 31 : ~G450211 :~__ 451~=,410 11,440,839 .245 0.45 186.538 533 .09 56,510 3 :357 53,15 396

31964 . . . ---------------------

10 FIM .3140,692 .13 1549

105,925 .395,281112,260 .257,115

0:47B 11 .S14Z~ja. 9

111,14585.03

la,411 659 .357

562

1 7533:

55 .92 4S5 .GD4

1965 --_------_--- _ 7 .3117~47 111 114 .411 .633 .721'

3 1

N I 5"NIID

1 '171:

1966_ --------24I

'861,929 128,879 .961 .342 S0~ .

G 6 ESI 6S:~19

If N. 12'7 : a

871967 667 080,295 148,374 .814,55,1 1 41

0 . 1-746 .68 65 .112 4 11

' . .MIS1969 -----------------------

4i"72~7"N :147

7 .11 1a

U!'~JAVII 5 .668

0:, ,,

0.40720

1,677'

'0

a :4. 17 '27 a "

:~177n4 0 7

T :a

.311 :G 23 .

60 .a7 0

1970-.-- ---- -

---- ' _

986 . 159.16Z 195,72? .091 .1!)1 0.11 ; . .11 a55 .11 68 8

09

4,356 63 74 21I.q?l : _

015.17

"'111 E47 I11 1 1 1

0115 1 1

9

'1 "

, 6 64

972 -----------

' .

:3

1

1 90,4 127

: 55 : 'T : '.2.9 16 : 50 4

. : 8~. .G.

4 17 ad, 4 : 182~

69:

I U-sed .

116 11 74'1-12 0 - 1~ - I

Table 9-Number of occupational tax stamps Issued, covering fiscal year 1972, or portion thereof, by class of tax andby Internal revenue regions, districts, and States

Distilled spirits

Total Rectifinn, Retail deal . .. Manufacturers of mm -

Internal oteenue r.th.- doftrict, and States (States

number

of acco . Manu. b .11.9. product.

represented by littgle di,tocts Indicated in pat II-

Whole. sells.

M

,.fall to, other State. Oman .1 bottom of able)

I

.11o,

Less

"'-

.1 . into Not Net Man,stamps .1 than do,far, spirits ... a . . the .

11, ad fill, ~D~~ n,

`

255 Retail At $54 coodl.9 cauding 50

$55fn ,T

or

dealer' large2 5

so gallon s

ff."an,,.fD .

-2

p

-me $54 sm Italian'$25

9.11-$50

$]DO

(1) (2)

1',

(5) (6) (7) (a) (9) (10) (11 )

United States. total . . . . . . . . . . . . . . . . . . . . . . . 419 .493 IS 29 101 2,592 212 .679 1 176 666 108 39 636North-Ati-tic Real . _ . . . . . . . .. . .. . . . . . . . . . . .. .A

65,118 ZD 1 26,

454 33 .418 235 349 9 5 142lbrmy~.. . . . . .. . . . . . . . (Sao (c) below) . . . .. . .. .A t

5,902 2 ._ ---- ----- 9 3.791 Is -------- -------- 1 3ugus a.. . .. . . . . . . . . . . (Maine) i --------- -B t (M

2,574 ---- --- ------- 1 3 1 477 4 -------- -------- I Ios on . . . . . ----------- assachuott -- -Brotidyn ._ . . . . . . . . . . . (See (c) below ......~. ..

7 .929 311 .643 1

1--------

53

85 6.572 3837 6.199 23

340_ . . . . . .

32

1 2 34 6B yr

uffaIo. ._-_ . . . . . . . . (Sea (0 belo ------- _ 13 . lot 7 --__ ----- _ 23 8.0011 67 1 1--------

2 16e1,tiomilon. . . . . . . . . . . . . (Vermont) --------------toff

.rd ---------- N"`""t"uI)_- .. . . . -

1 .483 _ ------6 .484

-------- --- _ _-----_

___2

2 523 225 4.697 28

43

..... . ..

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

6M .nh (Sao (t) below) ---- . . . . 12 .634 4 . . . 12 257 6.160 19 ------- 2 4 1

T(Now Hampshire) ----- _

P W1,805 -------- -------- 1 2 604 5 ------- -------- ------ 2,. .n . . . . . . . . . . . . (Rhode Island) . ... . . . . . .C

Kid-Atl ti R i1 .563 3 --------

--------13 1 .437 31 ------ I ------ - 4.. . " ------_--------- ----------- -

Ba"Im"'.- ----------

(Maryland A D .C.).. . . . .49 .936 299ZI . . . . . . . .

42

1 72 210 34,739 4645 5 .235 10 2 _ -

j15116N-k- Te w jmsel) ---------- -

P' "

12 .358 I 71

10 94 11,198 29.. ... . . .

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

------- -1 99

e (b:,.*ww~: : : : : : : : :

11T.bteil'It IS,. (:~ b

g1 :5" `

5. 27

15 11 1 1:1" 1 -------- 31

Richnumd . :_ . . . . ... . . (Vugmi.)_ --------_- 7 .25

7 2209

------ .1 3'1

3

3

. . . . . .. . 4

Wil .l. l),lawane) ----- -outheast re. l949

5 991

1 . j0 78

-----

-------- --

APant . . . .. . . . . .. _ ---- ------- I ------ I ------- -

-

2 . 3

' IRS ----

7

--------

1

- ---- -

129 9 .931 ------ -

'I "" --- -.

ii2

52

21 3B,r .gh.m .-- . . . . . . . . . (Also . ..):: : : :: : I:

- -------- --------6 647 4 1

--------3Columbia .---- _ ------- (South Canantuo-_ . . . .

G b N t8,31D ._ :: :

'4 977 -------- I -------- -------- 2omns on . . . . . . . . . . . . ( or h Carolina)---------

H 1 4 i6.259 2 9 211 -------- 4 . . . . . . . . 1 6. 51 o l -----------

Plorida)'.-----------" '

5,783 115,942 ----

. . . . . . . ... .... .1

1 878 . . . . . . . .52 4 .691 --------

. . . .. _---- ---

I4

_1

31 2Nashville ( I mmaccuse) .---------- -

l i6,831 .. .... . . --- 26 937 . . . . . . ..

-2 . . . . . . . . . . . . . . . . 20an

Cil Reg on . . . . . . . . .... ...... ...ll

i" 1 d

52,655 11 9 17 333 31,348 60 11 74 19 3 8mn

" ( :: ~CI_u 1nd IS d b :

51 :151 --- ---- --- __ 55 4.179 7 1 34 15--- -Detroit

~Michigan) ----- . .. . .. .

12007 1

16 .393 . . . . . . ..------ 31 11 11 111 1,1. :, 2

DID zz1. 4 8 4

16Irds... I . . . . . . .L i ill

8,939 . . . . . . . 2 --------- 22 5.536 10 1

......

I cou sv e (11"luck

I.. . . . . . . . . . . .Parkereb .q . . (West Vilyginu,)---------

3 .614 53 .551 . . . . . . . .

22 1 3. . . .. . .

97 1,763 --------3 639 5 " ----- IS- 4- -------Idwe.11 Region -------------------_- -

Ab d W ij : : : : : : : : : 1 1" . 1310 44,931 60 1Sfi 8 8 116

er een_... . . . . . . . . . . (South D0 1Ch l

2 : 71 ---- . . ... . .. _ . 10 1 .004 -------- I ------- -------

I-, J~D . . . . . ____ . . . IS. flo be ow) -- -Dear onines (Iowa)

13 .422 . . . . . . . .5 531 1

....... . 5 107 11 .559 233 fi j 3 55. ------------ . . . . . . . . . . . . . . . . .F.;g.. (North Dakota)

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

,2 11 . . . . . . .

------- --------- 2 2 .956 3,

' 2 '

12

2

. . . . . . . . ...... . - 5M, wtook_ . . . . . _ (th,sessem). . .

:: : : : : : : :.

:1 . .039

: :: ::: :: : : : : : : : :94 600 ---- -:12 1 D 1 ------ ------ -

St L . . . . . . . (Nebraska) . . ... . . . . . . . 2 .111 . .. . ... . . . . . .. . . . .. .. . . . IS 1 ,9641 8 ------ 4.ou M-10. . . .. . . . . .. . . .

St PauL : : : : : : : M t10 29

. .3 45 5 .759 277 4 2 4. . . . ----- inneso a)---------- _

Spinth.ld (Sao Do bel7 945:3 5 ------ V : : : : : : :'

1 11 2 .622 152 19 1 1 1 5. . . . _ . . . . . . . ow) . . . . . .. .oth-st Region ----------- ---------------------

264 .115 is 2

3

--------64 4 .459 1

573 17 .71? 1613

75. . . . . - -

1-------- 3

44Albuquerque.. --- . . . . . (New Mcolo) --- 1,311 ------ _ I ... .. .. . 23 1 .214 ---- I . ... ..------- -

Austin----- M below) . . . . ....Ch

22 .6 2 3 ----- ---- . . . 232 2 .682 415 . . .. . ..

eyenne . .(W

r d9,018 Ji-

: : : : : : : : : : : :: : : 1 .1 1,643 ---- -895

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

. .)----- ------ -CLittl R k

4 .629 -------- -------- --------2,

15 861 47 67 -------- -------- 9e us . . . ... .. . .. . .. (Arkansas) . . . . . . . . --- -hat

n'. . ) ---- ------- -

i - ~L

2 .728ID .827 1

.1

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

a 77 31 1 .311

------ -1

----- -: : : : : : : -----

me . )Oklahoma C. j: :: ::: :: :Wi hit

7 .248 7 -------: : : :: : : :

19 1. 055 . ... . ..

.: : : : :: :: :

cat... gla sa . . .. . . . . . . . . (Kartuto_ ------ -I ber

4 .9386

----- ------- 34 1 .293 --------I ------ - ------ 3------------- ---------_--- 6,SM 4

8711 23 533 35,49D 5 54 ii

86. . . .. . . -- -able . . . .. &debt). . . . . . . . .. . . . . .

6 . . . . . . .2 .214 1 .

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

. . . . . . . .

. . . . . . . .1 705 ----- _2 659

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

":too . . . . . . . . . . . . . . . . . . (Matters) .. . . . . . . . . --- 2.077 . . . . . . . . I . . . .. . . .

-------- -1 1 .260 -------- -

-----------

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

4 thou u . . . . ----------- (Hawaii). --- _ .._ --- 1 .377 . . . . . . 2 . . ... .. . 25 1 .147 -------- ----

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

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

---- _2. . . . . . . . . . . . IS. is) b.Im,o___ --- 21 .713 . . . .. .. . 2 9 113 12,978 1 41-------

Portland :03 .531 . . ... .. . .

1

. . . --- ------033

59 21

.9. . _ . ... ... .. . ..Reno. . . . . . . . . . . . . . . . . . 04.00. . . . ... .. . .....

.21 ------ -3 .391

I . .... ..

1 :

37

M

2S :Il f1k C I,:: --- : : : : : : 1 .

.7.......

'

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

----

--- -. ,..sS ..IU . W h

1,.921 3 5 19

- 3, 2

76

--F31.. . . . . ... .. . . . . . . ( s orght.)_ --------- 1 6,226 --- _ . . _ ----- 1 77 3,078 - ------ - ----- - 2 --------

S

2

Total- for State. not h- . b . .

4) Calif.,..-, 31 :634 3 7: B 2 4 4 1 76. . . : : : : : : : :: " l la iI(b) Illinois- is 8 171 ..~817 1 3 3(c) Mass, Yo 11

.. f,7 1 5 3 158747 1,it . . . . . . . . . 43,29D 4 :: 15 3261 11 1

(d) Ohio--- A 19 3 38 820 22 F 5 62T2':3 '0

(a) P.nn3yl

171 .118 6 064 2 4(1) Tas as -------------- 31 63D ----- ------ 7 1311 4,577 1145

1 20

Table 9-Number of occupational tax stamps Issued, covering fiscal year 1972, or portion thereof, by class of tax andby internal revenue regions, districts, and States--Continued

Wine Beer

What. . deal.. . Retail dealers - Doeenns Tampa.lntern ;l rmenue r,gi.r,. districts and States (Stat

- - d."I.`,,Imo-cilby mill. districts indicated 1.Whole- Retail d'eselel lother Islas shown at bottom of table) Wines Win., 500 dealers . at r.

11,torWine, and Win., and barrels d.l,,,, $241 ' 1 i1255 own, $54 b .1 . a, mm,-, $'14 .(, bc,.r)$255 $54

fUf $123$2.20

Per. nth

(12) (13) (14) (15) (16) (17) (18) (19) (20)

United States, total_ . . . . . . . . . .. ... .. 269 931 04 56,402 140 S'sle 115 .5112 39 4 .116North-Aturific Rest.. . . . . . . . . . . . . . . . . . ..

Albany.. . . . _ -------------- (Sao (,) bel. maj -----415 29 106 3.678 13 629 20,239 26 475

5 13 0Aug,sta-- .- . .. ... ... . .. . _ (Mamto-------- 7 38 36 --------- 81 1 .953 4 9shot --------------- _ -----

(M-hu`tU)- . . . . .

374D------ if 1

.265 2 . . . . ... . . .i i sBrooklyn . . . . . . . . ... . .. . . .. (See (c)In la -2. .3~ 315 1 45

But,:1.. 6 218 4 950I1,e ,) t ... . . . . . . .. 10 272 5 177 4 :249 3 2566

Miele N.-V

Hartford --------------------21 G 932 ------- 2 94 . . . . . . . . . 4,,,an, : : :: ... . .:: 4(Cmmec cui)---------- 2 9B 27 1.440 1 140

outIss (cl hot-) 2. 2 23 I'DISO 88 4 .9D9.... . .. . . . .

. _ I I21 21.0 11 1 6Prodde,ce--------- ------- (Rhode Island) 1,f4fMid-AtlamtIc Region ------------ ____ ------------- ------- ij- 84 7 3.639 , 3 -------- j ------- jjjB.Ifinnon,_ yle

364 1,690 6 SolML no, 13 171Newark. . . . . ~14 of & D

.C~) 1 3... . ..... . . .2,eV,,: : : : : :, : 4

' 1Pol.delphs--------- --- See (a) be 4 - -------- r

as 1, 00 311 1 3297

Po"oh-::: : : : --- below)

I 1 8 606 3.4'19' .. . . . .R .ch .:'.'d. ------ 60 2 2,636 1 61 84 ... .. . . . .. IWil .ing.11------------------ (U.1sw.re)_ ... .. . . . . . . . . ... . .. 2 .612 . . .. 9 11 . .. . . ---- 96S.Uth. .t .. . . . . . . ------- ---------------------- 1111 17412 694

33 30Atlimt.. . . ... . .. __ ------ -----IS '

Bit m9hen- ------------ : :j"ec"ItO .. . ... . . . .. . .. 5 14 12 2 .008 . . .. S., T0,28 .. . . . . ..

Colinth, ----_------------ (South 421------- 21 ----------Allb-o"

.) -- ---------- 7 23.camhto_----- 8 172Greensboro----------------- (North Carolina)-------- 1 2.178 . . . . . . . . . . 20

2.034 .. . . . . .. .

Jasksum --- 641 95 1.693 58 4 '78

.. . .. . .. .

Ann"ITO . .--- --- _ --_- -.. ..-F1

22 11Florida) . . . .. . ........ 3 5 14 6,7254:11 ---------- ii

N .shaill b _)~ . 66 _.. . . . . .66 . .. .. .. 1 12 . . . . . . . . . . 1 3,368 . . .. . ... .. 11.Central Region . . . ..... . . . . - : : . .. . . . . . .. . . ------ 26 25-

57 L2 .728 598Cincinnati ---------------- _ ~Sm, ~ d

III beer 111 1212 :11 3 . . .. . . .. 1 .Clentimul ------------------ as 1 40 756 79

ot 96 3113 GGDan . . .. . . . . .. . 9 170 14 4 .275 1 74 58 96Indum."Iii ------------ 4 Is 11 1 .802 . ... ... 192 3 1 34Lounstoll, ... . . . . ----------- (Kentucky) . 1 1 54"k-bung. . . . . . ... 'West Virgin6 107 1 .474 2 22wmd

Mid P 2 .018 21

.249 Ifi .374 3 l'"iR-2 b - --------- ------ --------------- 16

Alba,olmm .. . ...... (South Dakota) --------- ----- _ _chi, (Sea (b) below) . . . . .. 7

.2 . . . . . . . .. . 3~1 . .. . . ... 43to54 147 t .018 -------- 245-to ------ ------- ---- 41 1Des Mm ;es--------------- _ (Iowa) ----------_--- I ---------- 4 Of 2 132 2 .?97 . . . . . .i"I"I Dakota) .. . . . . . . . . .163Mi Wacmsin). . . . . . .

. . . . . . . --- ----- 30 _ . . . .. . .. 38 93 . . . . . . : : :5 5, 300 36 310 3 .725 . . . . . . . . . 830Sl ltkb~ _-------------_--- (Nebraska) -------Ory.h. ---------- -------- 60 _ -------- 67 site . . . . . . . . . ......... .St. Paul, _,ro -------- . . . .. . .. . ..~Mi 70 16 154 3Mimmusaft) . . . . .. 80 235 4 166Soong

6 2 :49'6 --------,',I-

(See (0) below) ...... ... . 125 3S. 10. 3 123 191 .. . .. . . . . . 292363 8 833 31 .164 _ . ... . . .. ItAlbuquerque ---------------- liw~ iiieiw~h:-------- ---------- ------- 23Austin ------ So 0 below) --------- 4 13 -------H' 6.06 35141 12.7497 --------' gmun- 6 . . . . . . . . . . 40 94 .. ... . . . .. 10

C . : ::::-: -------: =Xmo - ---------- ----------D .

.. ... .... .. . ... . . . . . . . . (Sao (f) bek, ;;j,: :: Is 41 3.257 2 122 3,392 .. .... .. .. 11

L'ut R . . . . . . . . .. 1, 1 144 2 65 1,281 ...... . . .. 6it a 3 1 99 . . . . . . .T 44 1.295 .. ....... .New Orleans ------------ --- U-stiM... ) . .. .. .... . .. 9

0

11011111 ~Iklutyonk) 13 1 1 91 3,224

e IN

chi

He -')~ ------------- ---------- -- -- - 55 77 3 267 Aft. . Realon. . . . . .. . . . . . . . . . . _n . .;i. :

W A. 7 93 12,"2 9

Mchorale. . . . . . . . ------ -------

22 496 12,207 . . . . . . .. .. 6112R.i--------------- _ .... .. (Idaho) -_-----------

.. .. . . ..f .f2 4

-8 - ------- a- -------- 30 33. . . . . . . . . .

an.) ------------- I -------- . . . . . .. . .... .. .... .. 56 500

23 . . . . . . . . . . 23HtmbIuw : : : : : : --- . . .. . . .. I'll ILos : : : : : : : ------- ii- ------- -------- 113

- : : : : : : :: 39 3 .042 1 04 5 .02236 ------- ijj

Phoo-if

P. tend _---------------_- (0o .shm)__ --- ------ 7 44 -------- 2.835

. . .. 19 279

R." 244 59 no~1411.dl) ------U6Sell 1 74 12

I his). b.,.I. o-) ----------.. . .. . - . . . . . : : : : 26 979

U

- ------- S-1 96 1344 1San Francisco----- . . . . .. ... (Seed, 39 3. S1. 3 ~2 2 .694 . . . . . .. 395Seattle . . . . . . . . ------ __ (We ingtcn).. . . . .. 3 56 13 2.233 3 3D 643 . . .. . . . . . . 4

Cafilmnu_ . . . . . . . .Illimi- . . . . . . . . . .

~0 Ner York . . . . . . . . . .d) 0 ------- I— .. . .

~ .) pemmylinou . ... .. .f) T .. .. . . . ....

Total, to, State, of how . . b . .

5674113

44

14012

333

328

689

52312

72

6 .593667

1 .5855.9&2

709,663

46

124

204

236270114126

429483

7 .71761 2

15.961Hil

.27 516 .139

121

51 653 72814 5

I D29

Table 9-Number of occupational tax stamps issued, covering fiscal year 1972, or portion thereof, by class of tax andby internal revenue regions, districts, and States-Continue d

N .ti.e.1 F luor- Act

Dealer Colo . Adult,, -Manufacturers 1,00ste, Mandfar. only in operated ledor lospostans only of hire, . ." weapons ranning pinsess of Wag-

hn~erpnr,l, r-ruestogi,ey, districts, and States (State sa noted by in III, it stricts not cro,d in pa,,,,th . . .

____ Dealerin fee.

weapon ,lassihoul

or weapdn3d,issifirld

cles,ifiedas ;'Ary

devneptenns-

r'.11vatedbutt oil

ing ,$50

youls for other StAre; shown .1 thettles ul table) s-, . s i'A.yis

;'A.c y

Oher

$250

P

ned

$500 $5

.

Class 1, Class 2.Class 3 ,

12

Ohe,

WIsts-"Class 4 .

Ohe r

Weapon, "clan 5,

We.po n

Class 1 ,$10

device bass ,

325 $2 5

(211

(2 2t

'23) f24) (25) (26) (27) (28) (29)

United State, . total . ------------------ 10 If 149 5 6 92 15,605 59 1 .666

N.rth-A Basic Region ------ . . . . . . . . . . . . . . . . . - ,t

3 9 22--- --- ----- 11

65 3 13A San B .I ..)_ -- -hady . . . . . . . .

_- _

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

: : : 3I . . . . .

~ _~ :111Boston 1 3 6 ----------

- ------1 ---------iz - --------- -

11-1, n -'

~I' ------

----- _. . . .. .. . .. . . . . . .eBStjft .l ~

11 .11holit"d~ ~ ------------- ( venrell) ---- -------. . . . .

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

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

Hart did -- --------------- (C.n .,cti, .t) ------- --14.3hattan ---- ----------- (Sre B I hot-) . .

- - - -

-

"

5 212

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

__ . .. ...-------- 1.

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

I' riscrouth --------------- (New Hampshire), - . . - : : : : : :,

----------I

------ -- --- -~rI

Flov,id.- . . . . . . . . _ (Rhode stand) -------- -------- - .. . . .. . . . . ... --------- - - 4Ifild-Atlarti, Region . . . . ---------- I- - - - -

11 .1hunown IMa,yi .nd & D.C .) . .. .'

2. . . . . . . 1.. . .. . .

-

15

I.

3. . . . . . . . . . . 1.. . .. . .. . . .4

1 191I~I3 I 1. . . . . . . . . . . 144

I Vy, Ilium) ------- -Newark, . - _ : - ------ - ------------ --------- _ 15 ------ -Plrilad .bhia~ . . . . . .. to) be ..) ---- - -Pittsburgh. is a el below)

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

-----_* . . . : :: - ----- 2117

i3.

Ric end- : : : : : : : : :: : . .. . lV11= .-- -W.I.IoUrn ----------- - (Delaware, . . .

1

. . . . .3 ------- - --------

. .6. . . . . .. . . . 228. .. . _ .

-

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

---------- -

7

---- -So.

Uneasy Region- _ . . .. . . . .Atl .ood~ - -------- ------- (G-Rui) .. .. 1 2 4 2 53

i2

in3

Multaire .) ---South Carolina) . . -----

. . . . . ~ _-

- ------

_ . . .-

--------

I

I ----------- -----------

a

---------

1

2.480

. ... .. __ _

----------6

Greensinlie : ------- ------ North Carolina) . . _ ._ - ------ . . . . . . . . 3 ------------ -- : 1 50 1

la"""A--- ___ M inis'i pp .), ~ . - . . . . ... .. . . . . . . . ~ . . . . . . . . . . . . 2 569 --- 71

Jackslovill .. . . . .. . . . . . . . . nFiclidel . . . . . . .Nashville ------------ I Tennessee) - -

: : : : : :73

1 31 311

---------

. . . ~

'Gets

traIRegion ------------- - . . . . . . . I,

L~538 IF 41G

D _-fS11 d~ baidivC and Se" ~d 'lcrwj~ . . . -------- ------3

46682 2

2'34

Detroit --- Michigan) . . . . . . . .~'

. . . .. . . . 7a '~ : : Irdfisnii) ------ -

L, avilfi-__ ------- Kentucky)- . . .--, . . --------------- ------ --- - ------------

. . .

----- a'39 713

11

23131

Parkersburg. . . . . . . . . . . . . . (West Virgin is) .. . . ...Udwe at Pexion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . ... .. .I

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

. . . . . 26 56 2871 ------------7

85

" 1Aberdeen _ . . . . . . . . . . . (South Dakoh) --------- --- ---- -------- -------- ----- ------ ---------- ~ I

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

NCagd_ . --------- __ (See (b) below) . . . . . . . .

Co . Mein . . ... . . . . . . . . . - (Iowa) - . . . . . -I_ .. .- -- :- : :: : '1

I--- ------

i

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

---------- I. -----------77

t a,R

h I!"on Unko 3)

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

3 1hil'sup".. rOndah ---------- -------- (Nebraska)-

i- ------

__

-------- 12

. . . . . . . .. . . 4SI. Llui-------- ------ - 0"I'llooll) ---------- - -S

. Paul --- -.. .. .... .. . (Minnesota. . . . . . . . . . . .------- -.. . .. . ..

------- -.

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

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

"S

17

. I

Sunlit N) "In.) ------- -Southwest libeg . __ ---- --------

-----------

- __ ,6

42

----------al3

2 .599 is5

14 0Allb."'onfu . . . .. . . . . . . . . . . (No . hil --------

: : : ::--- . . . . . . . . . .

Aust . . . . . .. . ... . . . . - (See if) below) . .. . . . . . .C Bay 'on. .

. . . . . . . . . . . . . . Wricirrilg .. . . . . . . . . . . .Dallas --------- (Sel 01 below) ---------

. .

. .--------

.. .1

N. . . .

6------ --------- 98'

------------ Pill2 1

Deb ... . .. . . .. .. . . ... (Col. .. do) 116Little Rock . .. . (Arkansas) . .New L.uniarl) ------------ --------

-----------1

3651,07 3 1~

Ohl home oushoore)------------ ------- -------- 3,

fainsWighia . _ --------------- fKansa .) .----- -t, Region - ---- --------- -Anchor,g. . .. . .. . .. . .. ... . Alaska) ---------- . . . .

-. . . . -

---- ------

- ---------- - ----------2 1595

3 .121----------

-It 820

1 15Runs' _- --------- -

ars) . . ------------ ---- --- . .

-----.. . ... ------------ ------------ 2 93 ------

2

9 1Honolulu ----------- I H-4) --------------Lee A.l .. . . . . . . .. . .. .

.Sol% (at note . ... . . . .

------- -1

---- - ---------4 . . .R~ . . . . . . . . . .

Phoriell ----------------- (Aidtor.r.Pis rile nd _ ... . . . .. . .. --- (Oregon)----

2 ------------ - 25

"9

------ -: :, : --------

32

"Ono ... . . . . . . . . . . . . . __ (Nevada) .----

**

------- -------1,70a _ ---------- 12 1

Saint Uke C IV-_.. ... - Utah)_ -a

;1...

1

S Fruncinn ... ------

-

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

41 886

. . .. . . . . . . . 4092

Seattle .. . . . . ... . .. . .. : :: : W~shml . . ... ---- -------- -j ------------ ------------ -- --------- 51------------

176

~in California. . . . . _ _.b) Illinois . . . . .. . . .

(.) N ". ) " %-: :: : : _ :fit ) Ohio .

(e) P an o1;U) To- ----

- I c lend, I I br .-s In,. than 5DO bbi, C, $55.00.

120

Total, I., States but how. abov e

4 2

: ----------- 445

17190

2

11B121I

----------

2

51

2S

Table 10-Number of returns examined by class of tax and by Internal Revenue regions, districts, and other area s

Region, service center ,and d .st,i,t Total

Indfividua lan d

fiduciary

Cereals-tion L,Ial . Gill Ii .em

Ersplo~-dean

Edrep t,g

Td"I _Ill,rth-Aflart6c _:_:~ ------1 695 849

' :1 342 BID'

135 .993

32 67'

5 71

0 026 69 521 18 0 6 9.NO -Atlanti . : : :

304 797742 682

257 :986111 1

20,4855

:42 1 29:9:323 7 :193

if,3 :8. . . .. .. . . . . . . . . . . . . . . . . . . .

dSoutheast -----_-------------- -------,

224,648. : 711 . 21

1, JIZ..3 :73 250 72 Z' :

I IDj 2109Central ----- - ---------------- . . . . . . . . -------- 218,019 171,014 20,321 3

6 17 "

IIf 14

'

I'1 2

7"

1

5GO2 82 2Midwest ------------- - ----------------------- _ _

Southwest ----------------234,406In 459

175 .2111)130 198

Z2,46 014 0

5 :8 4 8 1 J. 3 I D jO : ,, ~3

: 690-- -------------------W Aers, ----------------------------- ----------

'278,516

.212 117

. 2 31 .1

5

3 .490 1 .297 16 .796"N"It

11H2

9 1International Oper.ti . .a,-,, . ---------- -

N.rth-A Inintm Region :. . . . . . . .

I

15,3ZZ: 2I 1,

269 281 33 14 .58 6 ,Se, ice Leste rAlbany . -------- -- _----------------------- 13.146 10 749 659 333 61 887 44

16Au ust ------------------------_--- -B ------

t

5 ~ 7974 2" 3

142 25 3ii~I3 7 3

es:: :::: -::

Blo ,41:114 33. ~11 3 .788 943 160

1 .464 645

Belief .- ---------------30

40 .69969 24334,211

3 04 53 .1 1I

99564

156141

1 .27 01 065

790947

I f68Go

dingier, . . . . . . . ------------------ ------ -H

4 .350'75

3.2i

2. 10.

3 2 45?artf,,d ------------------ ----------------- -

Md.hatt-29,H)a 23.916 2,159 612 184

1. 05 1

1 1223 1-------- ------------------- ------ -

Ponseroutt-72 .595 53.997 4 .944 1 .803 554 1,763 1,781

' .746------------------------------ _ _

Providence _ . ~ ------------_--------- ----- -AH&Atlarti, Region :

7,20 29 .366

C.200

7,674552877

82

9422IG

2 0464

313225

1316

S vice Center

. . . 11 618 84 13 1 3 .111D 703 154 1 330 I D5 981: : : : :Nowuk

Phil d l h

:7, ,G , :

, 7 6a 743 ITG2"

,3'' '

:1 4

'a e p is ------------ __ -------- __ . . . .b hPi tt

50 44D s3U 7 5 4: 3. C. 7I14 2 :56

' .03~ 1 0.. . .. . . . ..

. ------------ _i .,gR --------- -

i fi re d29,956 22 .819 3,615 GSI 251 1 .714 885

.21l r n ----- ---------------- ------------ -

Wilmin ton3

17 : ' 1 '1

7 0'390 141 711 .1 2. 113So . g . . . . . . . . . ... ... . . . .. . .. . . . . . .

theast Begin,

1013 . 41 1

:171C 68

DO 423 ~99 33

5 "i'a carte lAtionts, -------------- ----------- _ _Bunnimph,s . .

36 .177 28 .999 2-315 423 111 1 .459 1,317 1 .553. . . . . . . . . .. ... . .. .. . . . . . . . . . . . _ 22 .11

A

19 1 : .1114

147T4~

653131

9481 1111 1G"onse. " 90 30 .80 2 .770 484 19,

" 950 .654 1 4

. . . . .. .Jackson ; ------------------------------------""

8.7G6

116 .012 970 203 114

.. '

9

, : : : : : : : : : -----------------------Nashville ------- I ------------Central Region :

57.41632,059

44,54723,835

4,70 13~499 1 .2'

19747

(121:9G 5

31 . "151 IN

Servile CenterCi i-sti ------------ ---------------_-_ 34 .303 25,679 3,686 514 C2 1 597 11 3 1 1 1 7

.vI nd,-

D t it47 ,, 3, ,, , , , DC(i 3

,14

1

1 :~ s 6 ,~ . 7e ro ,

I di li

IiS : 592

'3 :7S 4

484 9:-0215

:3 862 1 .854 1 7 1s ---------_---------

-n anapoLevi-Il -

37 .28G 28,638 4 .203 633 64 2,401 1 .3137 ,

------------ --------- -1111arsliql,

Mid we at R R .si~

21 .59311,365

17 .2458 .841

2,001 .330

I351118

4635

647311

1 .225716

1 24

Ortin,Arline.. . . . ... .. . . . - --------- ----- ------ 3 .824 2.480 296 149 560 315 2Chicago, -------- ------------ -De M 11 . 141 1 2 14 1 149

1 ."'371 111 4171 1 .7G2

s ., .cs . .. ... . . . . . . . . . . . . _

"

~8'. 1 : ~ '14

9 ,1 :'

ii7C7

013

:.

2 59

:3

IM, an-!' 2"28 15 3 :91(] 25~'

34~1,41G 525

1 358

1

4~

1 0"

!,49

Borah a . ---------------- _ ----------- __ ---- -

St L,1 . f, 52G 1D E724 1 '.94G 13. .- ------------------------------------ -

St Pout34 .627 24 .76 5

23 .930 112 111 1 0 14 1 .411 998. ---------------- -_---------- -

So, Springfield ---------------------------------- -trivial R .91.

28 .55818,772

2 .85313,948

2,2221.287

~3 i

538

1 ,

65

1 :47 ,

1 .847464

1,D4679741

ServiceCon

to ,A 'd c-q .- ------------_ ------------ - G .159 4 .592 525 101 41 444 445 1 1Austin . . . -------- ---------------- -

C "

39,742 28 .729 3.276 90 360 4,D67' ." 84

7'Youne .- ~ ------------ ------------Dall

4,014 3 .147 7546 1 32 2"

114 7as. . ~ --------------- --- --1-1 --- : _[Bov e,

40 311: 21 :51 3 3.1BZ .9 31 . 1 .1772, "1

531------------- -------Little R.ck. . . . . . . . . . . . . . . . ------

.I3 ~

12,311

~ ~rs

9 .264 1 .2

121.7 ' 71.1 .11 3Wj 1.,Sit,

1NNew Orleans- . . . ~ _ ------------ ------------ -Oki h C t

25~581 21'1 1

2 33' 111 17 1 1 .217 1 2. no . i y. -------------------- . . ... ... ..'Wichita----------- _ --------- -------------

Western Region :

Bd'GS6

19 .324

I :7~9

13,754

1:37 0

1,3974

~7

342 69

1 :.,3

2 .072

in g

1 .66G Z4Ser-i, ile CentelArph . .. an ---------------------- 3 . 3 75 2 .894 242 is 2 1 21 948 so -------------- -----------

, ,8 .340 437 139 45

,,51 it

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

Helan iH 2 2

13 27 651 3 '1 1s 1 8

15 4 4 72

13. 1 25!) 5

Pheed, --------01 :690 82,99

46 .990 3 .086 591 4, 382 3, 717 91

Perna..

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

14 87 816,568

11803

13,4181,38 81,0110

316385

56

81

3 53

893

9 3

704242Be no__

Ae_C 1j: ::: : :7 .fIl 1 3 ' 7

4

1126 144 331

Set! L 1S F i

to 1 34R:57S . . GI

111619 765

. . . . . . . ..

ao lon lS sn, ---------------- -------------- -tt

70 .732 55 413 4 2 .11 336 4,731 2.841 78 1co,---------------------------- __ ------- 27 .010

: ,I s20

2 :187 455 65 2,136 1,594 40 4

121

Table 11—Additional tax and penalties recommended after audit examination by class of tax, and by Internal Revenueregions, districts, and other areas

(in tho... d, of dollar,)

Reg service centerim"..ad district otal

ndividua lad

fiduclary

rpre.tion tate ft d.

.. ... api!Mic h

Total . . . . .. . . . . .. .. . . . . . . . -------------- 3,413.133 1 001 563'

921 97 2'

9DAU 149 0% ,300 32114cirth-Athimli . . ... . ----_-------------_--- --- 705,559 221 :183 62 :SU 6,296 ,S49 :316 .2DD 7N-Allmr1i. .. . . . . . . . . . . . . . . . . . . . .. . .. . . 487 526 137`2

00 240 9,520 .350 ,297 426 3SeatCan he. t. . . . . . . . . . . . . . . . . . . . . . ... .. . ..

."--------------------------------------------

75 :96 74011,142

39 :5 398 .022

s Z94221 .256

,64656,76111

1723,932

90615,655

7 64,5S7

42111111d.a.1 .. . ... ... ........... . .. ---------------- 564

. . 118 '6659 .770 0,672 ,319 ,667 .044 01111

Southwest . . .. ......... . ... ..... ..... - - _ ----- 3 .548 107 :63D S8 .517 7,SZ3 .639 0 .672 &9S 269West. re . .... -----------------

-[at... . If... I -------- -North Atlantic rrillon :

10 63 839 :132

71 9147 :496

7 62 122 :595

3598 :059

133'149

,52259

16794

3----------

S-k . came,. .. . .. .. . . . . . .. . .. . .. . .. . . . . . . ------ -

A""'14 .230 ,153 .728 .494 38 5 0 2j

August ... . .. . .. .. . . .. . _ ------------- 6 753

,974 .979 1 9 9 2 --------- -B 'tom . .. . . . . . . . ------------ _

:94 824 9 .780 4 .590 3,851 69 950 877 I

Smakly. ------- ___ ---------------------- -

uftel---------------- -- ------------ ------ -Bu'linglan --- . . . . . . . . . . . . . . . . . . . __ ---------

13 :14447673

3,273

:~222JS IS

1,911

.1219 .037

953

3':17291374

01 .40 74

61225

2

62,117

29

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

-flarthind. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 .574 12,469 3 .639 6.731 79 85 2

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

Manhattan. . . ., . . . . . . . . . . . . . __ . . . . . . . . . 307,293 72 .6% 93 .620 7 .296 ,313 .512 28'

-28

Portsmouth . .. . . . . . . . . . . . ---------- -P'revide - ------ ------------------ -

Mid.Ati .ati, Region :

.77616 .521)

.32 44,140

30211,077

01 .106

259

17

7M

1 ------- ------------ -

Service CenterBaltimore ------- ---------- ---------- 70 .327 30,376 2 .301 , MD5 36 ,295 278 6"mark . . . . . . . . . . . . . .Philadelphia . . . . . . . . . . . . .

Is.532

131 .W4 .53 3

36 .926.737

94 .56162 1

6,4053

2558

2,1590

835-------

i jPithhu'lit,.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ 67 .247 3 .748 9 .933 .489 ,127 456 2 2Rkhromull . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _

So . .. . . . . .. . . . . . . . . . . . . . . . . . . .. . . . .uthmast as on :

14 8

7 :1111,6 4

138 :413.621

3 08753 2668

6283

643

59122

36 9

S centerAtlanta_ ..... .. . .. . . . . . . . .. . . . . . .. __ --- 49 .281 11 1 11 7, 1 ,103 52 0 1 18ir lagh.. . . . . . ----------- _ --- 29.106

J :30,4.759 ,779 9 4 4

Wmabi- . . .. ... ... .. . . . . .. . ...Guminsion m------------------ ---------------- 60 QOJ": "s 33 315 12

0147413. 3

1824 .433

8886

132801

0528 -- -

1111, ------------------------------- 23 .960 15 .219 ,440 .227 32 16 6-- -

------- -1

' 1 IS '17 204 .392 1 1 71 905

12"

8Nastntill.. . . .. . .

Central Region :65 : 7

1~ :24 .063

7 : 188 5 7

:31 5

Servic CenterCincinnati .. . . . .. . . . ...... ..... . .. .. .. ... . 51 041 12 413 1 .121 1 11 1 3 6 6Cie.

.:..d . . . . . . . . . . . . . . .. . . . . . . .. . . . . .Mr

.

" '

:03 549

8 663

3 0228

3 3'

058,

46 5 "

:1468

-

1 ,

I .

4 s

1 .927

.1101 21 .0 5

7

29Indian

a

:

2 1 1 4 :252'

4 1 :3 2 .496 1 .2115Louis, 3

.20221 .6245 .075

4 .2635,590

171791~

173

~25

968

211

:: : :: ::: :

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

-S rvic. Cente rAbordeen-

-- -----117

1 1419

'2 2

7 1Chi, 1._:

217 1711

49: 11 & 5611.284

,884 979 729I F )

. h- ------------- _ ------. . . . . .

mlfi)~ ---------------------- ----------- 11 ----33 11 1.347 11:17'1 11 1

694,08'89

617

763 T2Mil

=k - ----------------------------- - 1 11 1 1 988 .818 173 14 2 760 9 1D : : : :

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

D3 :0.9 : ..,661 418

5235 1

St. 101 .0' 1221 17 11 171 2 1L19

,133 03St . Paul-

So. Springfield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .th.suit Reg,.

4 :85217 991

:1,. 5926,470

.7 :02 8

7,177

8: 41

3,173

9, 1

1613

5452

3618

Service CenterAlto . . . . . .. . . . . . ____ 10 .516 5,251 ,355 63

11 6 ----- -A

Wo ----- ------ ------------- 11 111 1 131 1 111 3,712 .587 01 .3 298- -

15 3Crayno,.. __------------ . . . . . . . .

Get

12 :449

3121

:16 431 11

233 " 1

91 2"

311

41 1

'

7.379

------

iiiDeal ,Little Rack. . ..... . . . . .. . . . . . . . .. . . . . . . . .. . . ..

:2 528

616.404

:

5 47 .-SZ

3 :1 7

5,944

: 231

L7557

"1

:4 0

2"

4435

)2

New Orleans . . ... .. . .. . .. . ... .. . . . . . . . .. . .. . 32.905 13 .438 1,048 .525 XI 72 9 ------ -Oklahoma Oly -------------------------------- 53 .983 10 .920 6 .290 ,935 20 ,025 5 MWic

ggmdu'.~hlt---------------- _ ------------------- -Raglan :

6,378 .190 UG ,314 1 8 135 --------- -Service C

."Anchorage 2 .812 1 .591 77 S 0 4 4 -

5 3 7N

3 171"1 "

8 8 5--------

. ...---------------------- 248 3 :399 :1M . 256

16

1 94

.

----------,as Angeles------------------------- :-::::::

:111.7 ,23 .

,16687,097

15296 .525

33 .0536' 999 M.1 7"0'6 --------

Phormi . . . .. . .. . . ----------------- 22 .761

,653 .152 1 1'

" 111 3 1P.Mleml . . . . .. . ........ . ... .. . .. . .. ... .... ... 22 .768 7 .575 1 .537 40

72

4of

1 7

R : D . . . . . . . . . . . . . .. . . .. ..... . ..... . .. ... . .. .S It take Pity . ~ .. . ... .. . .. . .. . .. ... . .. _ -

16 .29 7

" ' '

.5654,117

4896,67Z

836176

029

31 37

9

4

'3

. . . .. .Sao F

... ". . . . . .... . . . ...... .. ... . .. ..15 . : 15 3 7 .663 5 .326 0,438 ,948

:462 381 Asmittl . . .. . . . 1-1 .... ......... . 31 .491 10,915 6,088 .594 75 8D 101 9

- Less than MD.

122

Table 12-Appellate Division receipts and dispositions of cases not before the Tax Court (nondocketed cases )

A. Progress of work F.Y. 1972

Status

Pending July 1 . ------------_-_-----_-- -------- ------ --------- . . . . . . . . . . . . . . . .. .. . . . . . . . . . . .Received . . . . . . . . . . . . .. .. ..... -------------------------------------- . . . . . . . . . . . . . . . . . . .. .. . . . . . . . .

Disposed of, total --- ---------------------------------------------------- ------- -------------------

By agreement ------- ------------------- ---------- -- ------------------x.g,red : (0. . .... surem anns, -playment, and offer in commmmse imechmix) . . . . . . . . . . .

y taxpayer default on statutory notice -------------------------------------------------------------By pubtio, to the Tax Cowl-transferied to docketed status-- . . . .. . .. . . . . . . . . . __ . . . . . .

Peadurgium, 3D. . . . .. . . ------------------------------------------------------ -------------

B . Results obtained in disposition s

Method

Disposed of, tactal ----------------------------- ---_---_----_--------- -------

By ag...me't--------------------_-- _'__ ----------------------------------------------------Unameed : (Overessessiments, clamns, e,ci,,, employment, and offer in comi elections) . . . . . . . . . .By taxpayer default an statutory notice --------------- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . ---------y

petition to the Tax Court- transfer red to docketed status . . . . . . . ------_-------

Number ofcase,

(1)

22 .32825 .33 3

24,250

18 .8771,83 5

9012 .587

23,41 1

Number a t

(1)

24 .250

18 .8771 .885

9012,587

Amount, red in . . . .mt-imar,'marta(thou.ml dallms)

Deficiencyand penalt y

(2)

2 .616,2351,529 .700

1 .317.996

1 .1124,90324.66420.957

247 .47 2

2,827 .939

Ov x" ....at

(3)

135 .51883 . a"

58.994

55,232L .07 0

612 .63 1

160,4Z3

Appellate determination (Ummanddollars)

Deficleamr,ad meal y

(2)

638.231

ov.-se'.atent

(31

357,94322 .96420 .321

237.003

65.69D

64 .3291 .360

1

Table 13-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax Court(docketed cases)

A. progress of work F.Y. 1972

Status

Pending bly 1Recemmi )

P111imblefled a 11sumnli, to-Ristrk Dugmtms' statutory notices . . .....h

ppalit.t. .,rs.an s ItaMmy notice ,Disp . . d of, total~ ------ -------------------- ------- -------- --------------_------ ---------

By st,pulated agreement------- -----------------------_-- ------------------------------------By dismissal by the U, Court .1 taxpayer default --_-----_----- --------------------Tried bifmc the lax Court on the merits ------------------------------------------------------------

Pending June 30 -------------------------- ---------------------------------------- _ -----------------

Number atcases

(1)

'81 :445'

6 .5222,423

8 .648

6 .598954

1 .095

11 .460

Am :t(,t.t .d t.a' 1 " d Itto t1'rynote: thousand . a

Defive"y In taxand penalty

(2)

0,., . .- .an a t

(3 )

1,467 403604 :6295

362,125242 04

468.62 6

395.189,507

63 .93 2

1 .603 .406

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

. .. . . .

Drift,-, from table 11, transferred to docketed status is caused by exchudmg district ch-lars' statutory r.fices mrsid.. . all by Appellate .. 9D.d .y status.

123

Table 13 .-Appellate Division receipt and disposition of income, estate and gift tax cases petitioned to the Tax Court(docketed cases)-Continued

B . Results obtained in dispositions

Method

DisposedBy alme ------------------------- -------------------13, dismissal the lar Clull 11 talineye,

default ------- -------------------------T, ad Were

he _ --------------------------- ---------Tax Court an the inaital -----------------------------------------------------------

Number ofrienur

8 .6486 .59 8

9541,096

Appellate determinationPhousand dollars)

Deficiency ,n, to,and pan. ty

Overa-es.empt

187 .825114 .581

9,31263,932

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

------

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

Represents amounts petitioned ,

Table 14-Office of Chief Counsel-Processing of income, estate, and gift tax cases in the Tax Court

statu s

ch", July LP in eamparmd~ :1`1~~mdDisposed of. ~ . . . . . . . . . . . . . . . . . . . . . . . . ----------- ----------------Pending Joe, 30. . . . . . . . . . . . . . . . . . . . -----------------_----- ---- ---------- _

Revised .

Member ofrose ,

(1)

8.50712 .625

Amount in dispute (thousand dollars )

Tax

(2)

penalty

(3)

Overpayment

(4)

Defiri . . . y

LAH W"R

: 667372. 105

1 .477,259

f'235646 .3,11

140 :51 .

143,GZ315 .330:4"

146 411

Table 15-Office of Chief Counsel-Receipt and disposal of Tax Court cases in courts of appeals and in SupremeCourt

In courts of appeal, In Supreme Court

AMDU I, disput eRl

Amount approved isputeAmount i

mount approvedMonth .,

ad g((house doi sea) thousand dollausl umber

dollars ,Iffinnison ithouse dollars )

states of cases of cosa ,D,firbm Olc,. Dgh,inn- an,. omme- ver- ,ficle, er .cy end eymene, cy and ayment y and ayment y and ymen t,.n.1ty panelLY penalty enalty

(1) (2) (3) 4) 5) 6) 7) ) ) 0)

Pending July 1, tat.1_ ------------- --------- 503 39.632 54 ------ --------- ---- ---- -------- ------ -------- ------- -Appealed by Commissioner --------- 6? 13,83 0pA p : ,Ild Iy Winger- ------ 73 .12 0pp ~ 'yA

adboth_ . . ------------- .02 . . . . . . . . . . . . . .. . . . . .

Appealed. total . . . . . ------------- 14 .651 162 - ---- . . . . ... .. .By Clause"!. . .. . . . . . . 49 3 .192 7 51S'fly to, syn -------_---------_-------- -

both .-___ ----------- --------0?17

,7931 .66G

4

141 ---

_ . . . . . ..-- -

--- - ------ ---------- --------- --------- - -Disposed ie. total . ..... ... . .. . .. . .. . . . . . 364 30~69G 44 6,2t5 6 2 9 ----- _ - ------- --- -

farm ahl: lo Conere-eme, . . . . ... .. . .. . ... 206 4.08 4 08oTo.ghl thapayea ------- t 8 ,204 77

:_--- . .

--- Jii- ------i - ----9

----- ------- -------llmd,,ad -------------------------------- 24 .217 0 30 9

--------. .Settled

4"1 '.4'113

-42.4

-------- -1 --------

- ---------

-: : ..

-------- --- -. . .ending on, 30. teal_ . ...

:: : :1~1

3 587 72 :-

Ape 11:111:r-- --- 55

71~

1

7

-- -

" a d by PayAAppealed by both

31740

23 238

7AS

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

ReleRel .

Table 16.-Receipt and disposal of refund suits filed bytaxpayers in Federal courts

States

(1)

court of Dis!~el"er, ex,'t is

(2) (3 ,

Total Refund S its (other

and a'.

tie,")

Penden Joy I -Cages .l. . --------- n,,b,r,-

R ...Amount fi. dispute --- thousand ikillirrs-ived during a,, .C a ----------- number .-Amount in dispute ---tb,,sand dollars--

Disposed during year :

d dmlla~: ._AnRefunded during Yen, :

Amount. . ------. .,thousand drillaPercent at amount di,p ..d .1 . . . . . . . ~ :

Periling June 30 :C .. s~ . . . . . . . . . . . . . . . .' . - .. .be' . -

Amount in demote---thousand dollars--

3,467523,71 5

1,042140,211

1 442143:~:7137

36 .06

3 .067529,509

454210 .353

1"63 .01 0

150

.78384 76036~2 5

468224,5Z5

3J "231

R7877 .191

' :1'2""85

33 71339 .37

_599304 .924

r The number of c,-,,, it"""' c!hdos7,òùrr`,F"' with the number of reses Inwhich docise.,,,,

rendered by during the year . due to settle .W by stmul

.lia"' itlsml~11_11,',~"nd been ,,,,ad for evil 'i . elcomplialown .f

W, etc, In the Court ofC

. .be, .1 debionne, a, 70 el which 16 1,for the Grivemire"'51 'Aar nst the Gor-reent, and 3 partly,

for.1, n" ' ' ' I yu`,%"2~118'the Government. In the d,a lact court, 390 dacisirp,, w end ad . .1 .

will for the G. . . fnm,.nl : 1,11 gins1.1.1s, (mvemerem, seel Is pp~,U~, to, and p,ellg

remen'o ."~r the Cover or by the comi of ap I and Som,my

u a,alabln 17.

Table 17-Office of Chief Counsel-Decisions of courtsof appeals and Supreme Court in civil tax cases

Partl yfar the Against to, an d

CourtToW 'in -

Govlenthe Gov .element

rth,agains tin,ineme",in

I

fl) (2) (3) 4)

Total . . . . ----------- _463 - 3 1 31 6B) courts at appeals, total . 4166 299 : 28 11

Originally trial in -Ts' Good ti, O 7I

4District c'i

'5' f9 ,R

I2

By SiRp'aneCmmt'tct,sl____ 5

2

O"goolly tried ip -tax

t"

""3

I. us . '----

-------- -

rill'Irt., lI.AppallI 7,7,olie im x in 3 3 do,k't mr re bars .1 lik,121 in orhe ns wore partially to, the G...

rh~and 36 iminume, -nic."t'" a against the Gooeplnni nin all

be Supreme Court nimemed I opiplo, in 2 docket numbers

Table 18-Office of Chief Counsel-Receipt and disposalof collection, injunction, summons, disclosure casesand erroneous refund suit s

pending July 1 11971 )ociremd . .. .. . .. . . ~ :: :: ~ :

Deipa,i,d of . . . . . . . . . . . . . . . . . . . . . . . . . .P,mfirgJ .h,30(l972,_. _ . . . . . . . . . . . . . . .. ... . .

Number I cases

1,9761 11~ :7

?j43

'on11re ;tI.doxellged e.giD1a,V,,1ue.vgx

.1huch,it in a l~l 1, it1l~,hln161*t11.1'pan hi~chl..'il .11 .

no,

r. . .... .debtor ran ed' .'es a includedm table 20.

Table 19-Office of Chief Counsel-Receipt and disposalof insolvency and debtor proceeding s

Statu s

I'ledina July ] (1971),__: : :,-

Desim ,lilndimi~ June 30 0972j __

letTo

mm'Rantc .,~firm pro-

cmedits,

fianklim"Yand le-

cawershipP-ccl

egs ,

(1

2 .974J1 :'11, 'is

3,097

12l

~8'101

Nail

13)

1 61121~

1 .178669

.usfincelle.1yproceed.

mg,t

4)

410G2J

5G9524

r Proceedings Instituted die the toll-eq seclem in, chapte., of r1m Bank-it X ~,.rpmaln mug,ni-Al~ : Sec. 77 ouroa norganizationiO add

=X (arrangements as up un,,cu,,( in able ness . 11 (foal ildogehilyar-gammets),and Xill :wag, earn .?,$' plans) . which involvelor ell

re, an

tight, and intInIsIs of th I Unitied Statesb h ,illankmptcy Imeldefion proc-lim,si oml [,-dmal or Stale receivership pro.ce Rings w " 1 .'~ lenex at mc- Unfair St .tes .

fe; Pro ledin g, ,lating to corporate d-Imines,gill . .. I banks, is .,nemseftin oarmhtof creditor, mr,denemil,anion of no e-fidieedimis,,luch involve

to, cl eum, of the United States.

Note .-Includes eases handled at pati,mal and regional levels .

124125

Table 20-01fice of Chief Counsel~-Reaxceipt and disposalof miscellaneous court cases, lien cases not In couMnoncourt general litigation cases, and appeal cases

fiflist.l. Lien Noncomill

state,Total I=x

.1. 1

c,&,mh in

. .,1 1

genera lU Mellon' . . . I

Appea l

. .... .

(1) (2) (3) (4) (5 )

Pending July IR.c,i,.d

------------ -Unmixed of . . . .. ..

I '924

""8

113

11 1'90111

12'

'.3 11

1 .1 211 -'s4 .21 11 113

1 R6

121

Pending Joe, 30. . . .. 189' ~ 1

:,39 I 2J,

i Include, to Is for fo-f-le 11 himlimirce, 11 1111, -1111 -d-, . andsuits toQ .1e, flil . to

Which the United State, I, ad. a Party.

Pr!marily applications for dischelle of property from is, hens.t isbet men

"'"pearandu"' I cam . .. I

P' ily me on general ~1o'cocau'" Malt,!d" frome it it., "which ...

hot ,I.t.d a Proc., minor -cave,- include, isse, in Frel and Star, appellate co~ltl elating to insolvency ,,ad

debtor proccandurris ,

Ilem I,. m .mt, and. 11

.1mr, ..it m1mic onC.I. .

Note.-Includes cases handled at national and regional levels .

Table ZI.-4)Mce of Chief Counsel-Caseload repor t

Acti,ityPending

July I

(1)

Receipt,

(2)

Disposal ,

(3)

PandJ.nx!;1

(4)

Total------------------- == 38 .673 29 .2 6

Administration ----------- 124 167 12 8

Alcohol, Tobacco and Firearms- 1 .272 7,559 7 .617 1,21 4

Net.. . I Offic,. . .. . . . . . . . . .Fuld ---------------------

421851

2,06 55 .494

2 1595,459

328886

General Litigation .. . . . . . . . . . . . . 6.824 13 .955 23.300 7 .429

National Office . .. . . . . . _ _Fluid . . . . . . . . . . . . . . _ ----

4746.361

52513 .330

37912 .883

62 16 .808

Enforcement. -- --------- 2,467 1,680 1 .385 2 .762

National office . . . . . . . . . . . .Field . . . . . . . . . . . . . ------

992 .368

1361 .544

821 .303

1532 .6011

Interpretative Division . ..- . --- _ 360 ass 778 470

LnglOstio. and Regulation------ 445 205 210 40

Ridded Litigation Division . 3,467 1 .042 1 .442 3,06 7

Stabilization --------- ---------- 3 336 7il

NationalOffic ------------- -F.,ld .- ---------------- - --------- -----------

1 .11 1I J .7 1E :317 5"178

Try Court Litigation .. . . .. . ... .. -12,691 9,219 3 .873 13 .037

National Offic. . . . . ... ... . .Trial Rinsch National Offu.-Field. . . . . . . .. . . . . .. . .. . ..I

50 8207

11 .976I

27062

8 .897 I

3661 6

8 .491I

412

25312,372

I Notice, of incl ad .M= Is

Table 22-Establishments qualified to engage In theproduction, distribution, storage, and use of alcohol andalcohol liquors

chrics .1 establishmen t

Distilled spirit, plants :Pl. t, (.d munem) -----------------------------F.N.111ticr :

Production ---------------------------------W . ..housing--------- --_-----------------Reuling in bond. ~ ---------- ----------)xn.rg.

'" `L--------------------------- --Te .paid bottling------ _ -----------_------R'chlys . . . . . . . . . . . . . . . .

Denaturedand bexl~"f,,,

Deal in specialty denatured alcohol=ml,a .

Us

d ----------------L elicit us, . of quaistly-

desist-. - I , it.

-if"Ollorandit...

tmedI_ --------- -------------

Rmiroce:uvra . bottlinsr. .k.,ollprecallyderratmad., .h I .I Irtichm. -------------------

Users of tax-free alcohol. ------------------------Limited users of tax-free ----------------

8- 1.-..... ...... __ ----------------_-----Wines ;

Bonded wine collars-. .-. ------------ - -I . .P.id win . battling h.. .. .... .....V,miga'

. limerpur!ructirries using vaporizing process_.,S.e, .,. itsellers.

=11.1 do, ra I RonWholosidis deal,.

. in com, -----1 : ::!l dl,,I:,, !" liquor sR

I ea far in bear-------------------------Other :

filanufacturersol nory-boverage products (drawbacFroit -flaid, concent late plants. . .. . -------- ----Bottle manufacturers- _ ------------- ----------

As of June 30

197 1

342

1522765651

145136

42

3M S

386

969

1:662

1 59914 8

"I573

3 ' : 31"S51871

2"A'121 6

76564

125

I Includes experimental distilled spirits pints .'des :nz in rowea.

'I"cl.fi :~i :.ntej I

I In, it., im is bonded wine cellars.

1972

131 9

148275

5452

143132

40

2 .594

718

9M5.3181 .

'W1147

1464562

2 .3D24 .0905 .630

11 .3 .7"721

123,2

130

Table 23.-Establishments qualified to engage in theproduction or exportation of tobacco products andcigarette papers and tubes

Glen of establishment

Manufactur- of tobacco products . ---------_--------Ma,ufu urara of cigarette papers and tubes . .. . . . . . . . . .Tobacco expert wareirair.. . . .. . . . . . . . . --------------tul

A, of June 30-

1971

1955

191

1972

1977

203

Table 24-Persinits relating to distilled spirits under chapter 51, Internal Revenue Code 19551 1

Sectio n5,71I If

CodeSection 5271, i .R. Cod e

Users of -status Total MIMI- .0ho- I.

spiritsplant, denatured Specially denatured Tax-fies, alcoho l'P.' its

alcohol alcoholSpeciall ydenaturedrush

REG LTD REG LT D

(1) (21 (3) (4) (5) (8) (6) (7 )

In affect July 1. 197J .-_ --------- . . . . . . . . . . . . . . . ID,895 194 2 .994 396 is 5.662 1,59942153ured_ -------_-------------------- . . . . . . . . . . 1 .005 Is

9240 249 3 118 368

Terminated, . . . . . .. . . ----------- 1 .050 11 542 31 3 394 6 5

Revoked --------------------- . . . . . . . . . . . . . .. .. ... .. ... . . . . . . .Otherwise I.. ....led ----------- ------ I .G49 541 65

In effect June 30,1972. ------_------- _ ----------- 10,850 40 2.692 396 1.90220 1~5'

I IAmended . . . . . ___ --------- ------------- ----- 904

I42257 27 I---------- -

T able 25 .-Permits for operations relating to alcoholic beverages under the Federal Alcoholic Administration Ac t

GrandDistilled spirits plants'

Wine WineStatus total

Total 2 Distillers Warehousing R.I .fiev,produce, ,

and firedbleeds,, lesporl", Whol-l-

aDeD,

nd 0 in g

(1) (2) (3) (4) (5) (6) (7) (81 (9 )

:n fi,ct July 1 . 1971 _---------------- 12 .545 336 160111

155 37?

36 2 .21T '"..ad . .. . . . . . . . . . . . . . . . . ------ _ 1 .713 19 9 1.

95

52 1 : 16 5

I erminated total --------------------- 1,49 34 21 17 14 38 7 754 1,16 5

Revekind-------- - -------- --------- ,

-

3otherwise is, 31 .495 -434V

2 1' V ii

i

3V

E

Y 1 .16 2

1 effect Joe 11 73"

12 711 321 171

9;

393

19

2 .302

1

9 .720A.muJ.__7 -

1 :SIM 231

-100 319

1ISO

I Excludessermits for customs manufacturing bonded warehouses since such ext;bllxhmLnI1 8,rh not required to quality as distilled spirits plants.ICol. .. I do. of equesmit the in of (3). (4)

ad (5) si .. . ...permit re strivir re an mr, actwity .

Table 26-Permits relating to tobacco under chapter Table 27 .-Label activity under Federal Alcohol Admin-52, Internal Revenue Code 1954 istration Act

M .auf.- ExportTotal turer, of warehouse

status tobaccoproducts

piepubiter.

(1) (2) (3)

effect July 1, 1971 ---- --- 384111

19 1,sued

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

66 19 37

Iminmated, total___ ---------- 60 35 25

Revoked I Iotherwise 59

~

3 4

In effect June 30, 1972 3- 1871

20 31Amended. . . . ... ... .. 48 21 11

Application, fail ow n

Type of label Cerbhkc issued

D "Total

Appir .. 1. 1 Eavinp-Usim.Approved

Grand total . ... .. ... . . . . . . ... . . 59,445 58,312 150 983

Disfillool spirits, total .... ... . _ 19 .616 19,233 9 374

Domexti-__ . . .. ... - 16.192 15 .939 9 2U

imported- ---- 3 .424 3 .294 . . . . . . . .. .

130

Wines, total. . . .. . . _ ---------- 38,M 37,371 141 577

Dournextic . . ---_----_---- 14 .452 14,082 141 22i

Imparted .-. .. . . . ... .... . 23 .637 23 .289 . . . . . . . . - 348

Mail beverage,, total .. . . .. ..... 1 .740 1 .703 . . . . . . . . . 32

Domestic. . . ... ... . .. .... . 1 .254 1 .242 . . . . . . . . 1 2

Imported --_--------- 496 466 . . . . . . . . . . 20

13!

9 ---------- ----------

1

3 9 ..... ..

form 1649A corrections. total----

5 ,

759 . . . .. .... . . . . . . .... ......

126 127

T ble 28-Internal revenue tax collected on PuertoRt an manufactured products transported to the United

ICslates, by object of taxation

(1, thousand, of dollar,]

. Obtacts of taxation 1971 197 2

lotal- . . . . . . . . . . . . . . . . . . . ------- ---------

Disfillod piflfts-_ . . . . . . . . . . . . . ------------------Distilled spirit, ortifnalwo t,, .- . . . . . . . . . -----------Warn -------------------------------- .. ..... .. . ...H..- . . ... . ------ -- ------- - --- - -------- ---Cigars

, ].'a,:

clit .. . .. ... .. . . .. .... ...... ..... . ..Class B- -",* ----- * ----------------

Class ' * ------------------------ ** ---- --Class -------------------------------Class EClass

Cig'Cla" G . . . . . . . . . . . . - . . . . . . . ------am .11- -----------------------

Cilia .11 ------------ ----------------------

90 .707

,90.285639

104,762

9-99

10

Not'-Amounts of internal t...ru, In- collected on Puerto Rican tob, so

and cronof

11!,df1;.h .1"1p1lIddaxc the Urit.d States, 0, consumed 11 the~"lm it loss cunits cks

. '"" sas), are f .x, .ad into the T ... I'll I

Pon' 'aRica, undo, (he mm-mn, Of se: 5 2(a)(3) and 5314(u) of the Internal

It-"' n

Code of 19M .he gross _~

.t , are mllfef ad in .~ . .. If cqllcclmh~- .11, table, I through 4), beginning with 1955.Less than

$500a. it .

Table 29-Costs incurred by the Internal Revenue Service

L, thousands Of dollars]

Internal revenue office, rl a, region Total Personnel T,anttl Equipment Othercompensation

'1) (2) (3) (4) (5)

A. National Office and regional totals (including dishict directors' office, and serlticocenters)

Total Internal Rat,anu. Service' . . . . . . . .. .. .. ---------------------- 1,127,390 948,627 34 .287 27 .180 117,297National 0 4 7 11 7

"'11 15

211 117

'orth -Atlantic~ :

17

286

.5 '

1 837 1 3 946:92

14 : 494'fall-Atlartic .. . . . . . . . . . . . . . . --------- 128,711 l ll 171 3,233 759 1 .2~1So .,

he st ------------------------C

tOn -----

,lg .~ffi

1 1 7 11'

oE:668

j11 5114,793

3

'

2 .457

11 1

9 .44

'Mid .es2~ :

.7:13 G84 311 2S : G7 Is

South out ---------- ---- 111 71' "'

3 :90 776 5 .521WO,ttarn . .. . . . . . . . . . . -------------- -R gima .1 Counsel .. -- ~ . . . . . - . . . . .

:5, , 92

l . 111:E 31 97!1

46 .01 7

2432 .269

812 .530

385Regional Inspection-

--------- *

i' , 17 12: %5 1 .203 71 284

off cc of Intemation,i Urpmations . .. ---- 6 :4465,

666465 ----- . . . . .

,31 1

Na2ral Computer Clinto----------- ------ 4,957 3 ~ 382 51 13. .S T

IRS Data Centel. . . . . . . . . . ------ -- --------------- ------------- 15 .742 13.210 85 79 2.368

8 . Regional commissioner's ofikes (excluding district directors' offices and se-re

,on a'I VK .,th~At lm-----------------------------------------------------------------Mid-Aflantic--

17,890 16.28862

4 2

41 1S',520

931,212

southeast -- -C, flat . . . . --------------- --------------------------- ------

21 :57 7

!L",

: 506

1"

91469

364125

S,f,7

9DOM

w eid st- . ... . . ---------------------------- ---------16

3 ,1

6 29 151 1 u ssci .tl-ol----------------------- - --------------- -------- -Western ---------------------------------------- ------------------------

1 6 71 222 .518

10. 7620 286

616

"1

12 123

9541 .104

C. Regi-Ic .sis undistribute dN 0 rth-Afl,infic --------------------- 7

79i558 1 .005 14 20

-Atlantic------------ -------- -M itSoutheast ---------------

92: 7

' '

90790

7

824

0

---------

-----------

6 14

'Canfit . .. . ... . . .. . .. . . 2 :109 94 1 1 :1 5 2 ~Midwest . . . . --------- _ 2 .D29 966 913 26 4 4South- - ------ 1,141 117 115 44 2

7

West . .. ---------- . . . . . . ------- ---------- ------------ . . . . . .. 2 .296 796"417 L'-- - 7

83

Table 29-Costs incurred by the Internal Revenue Service-ContinuedIn thousands of dollarsi

Internal Revenue office, district, at region Total

(1)

Per netcompensatio n

(2)

T-a l

(3)

Equipmen t

(4)

Other

(5)

D District directors' offices and service centeis :ON rut A [antic .

Albany. . . . . -------- -------------------------------- _ --------- 4,991 4,644 135 52 15 9Augusta ---------------------------------- . . . . . . . . . _ . . . . . . . . 2 .579 2 .374 105 13 a sRush- ------------------------------------------- ----------- ---- - 18 .835 17 .731 372 117 60Brooklyn- --------------- - -------------- ----------------------------- -Bulfal. ~ ------- ------------------------------------------

20,22 67,3931,

19,19 011,743

288282

7 741

670319B first . ... . . . . . . .. . .... ------- -------------------- . . . . . .

1,111 1 23l 11

74Hartford ------------------------ S S

53

:Ral as 51

2 1

Manhattan ------ 42 :25 42 .036

40a"1

26, 1,3056 1

f~n.xid on ----------- ------------------------------------- . . . . . .i l ,

2 .11111

Is 132uerto air, Branch(AT&F . ------------- ------- l ,

15 .11 . . . . . . . . .

3N

0 ~1,1:A;Ial~c %1~1!hrll InfirillfihNo A ',it T,

o"1

31 3

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

27 43And.. . r S,r,i,e Cents, .-.-------------------------------------------- ---- 3D,52Z . 207 2 .926Brookhaven Survu, Units----------- ------------------ -

Mid-At artir :6 .251 2 :83G 137

1 .843 J,434

8.1than 0 ---- ------------------- ..... .. . .. . . . . . . . . . . .. . . . . . . . . . 15 .026 14 .424 .10 45 34 9Me

it -------------------"1-577

421 1

1 1

2

Pittsburgh------------ -------------------------- ------- '. 01 :47'5

:5I S

10 .94558S91A)

21100

541)222

Richmond ------ ------------------ 1$2" 9 NI

349 53 758VfiVrinF.t.;,, --------------- ------- -Miit:A , Tlmai- --to' ------------------ --- -R C

;

. .71929

2 I9

5 3------

1 351041 5hmG c R I

Mid A on-Contra ized Trananng_ . . . . . . . . ... . _ ---------------- -SoutPhil .dolphi, SinOu COM------------------------------------------------- -

It sat :

9 627 .30

.. .....i4:1fi,

95104

. . . . . . . . .. . .185

I

2 .907

Atlanta . ~ --------------- --------- 11 139 74 4 M Do 369:74 aS 4 237

1122

Columbia . ------ .. . . . . .. . .. . . . .. . .. . . . . . . . . . 4.3

3,980 16D 11 166

C

ra,----------------- -------- -

ckA' sboro .10 .3,909

9,13 13 .494 3 IfB72

13694

39149

"M2

1 6 6 1Got; 393 983

NashOll----------------------------- ------- 7 7u .035

7 279 145 305- T,ainirPCama,--- . . ----------------------------------- -

IM"'hatContr.1-d! ], .iO.ng --------------------------------------33

126. . . . . . . . .. . ..

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

12,2 3 14

Atlanta S-ic, Conto------------------ - . . . . . . . . . . . . . ..... . .. . ... . . . .. 21,294 19.057 80 115 2,042Memphis Server, Earlier--------- ---------------------------- -

Central11 .201 7 .140 199 812 3 .040

Ct I nhati ----------- -------------------------------------------- .. . .. . -ml 11,238 11 127 269 51 292aCIO land ------------------------------------------------------ . ... . ... .. 17 .394

6 :4 51411 97 435Detroit ---------- ----------------------------------------------- 21 .641 20 .166 545 222 7

":hdaul-polis-------------------------- : - -

--'" '1 IN '0NOV'

3254

5

95

11

37 4

''----- ------------------------------. .... .. -

-'it '

4 :315 3 .894 2 ~0 13.ioitA Training Cente------------------- -------------------------.01.1 gas 221 197 2 11 1 2

E"It"Repon-Ccrift,lized Training --------------------------------- -----

-ChlormatiScrx1f. Cont. . . . .. .. . -- ------- . . . . . . . . . . . ...... .. . . _ --------

Mid. .st

:

'TO21 .21E ------- H ---- -.314106112

.. ... . . . . . .102

42,734

2 OG313G9 115 14 65Chi

.. . ..28 .175

.. . .. .3II 721Cee Moines ------------------------------------------------------------ --- 6 .708 6 .167 232

I 7 1,2

Z Fnvaa~c

1 :12 59 aA 1,74 59,874

10 1281

4177

7 4355

Omaha ... . . . . ------ --------------------------------- 4 1

04 ' a171 14

1St . Louis----- .. . .. . -------- - ------------------.3 :

471 :112 1530

4 4Gs

7 4St . Paul, ------------------ -------------------------------S .If.5

9 .031 264 38 22 2Swi.0 .1d -------------------- . . . . . . . . . ------------- -------- . .. . . . . ..

t,Mul

"XI"an

,

l' od -

7 .33 521

6 .8061

298. . . .. .... . .. .

1 6. . . . . . . . . . . .

21 52 0T

al , ;~w: I . , :: : :: 140 . .. . . . . . . . . . . 139- 2

Sout Kan-C,ly S-iv,Ccnt--,.. .. --------- ----------- -hwlell .

24,636 0 .948 135 57 3,49 6

AM ... o,que ------ ------ ---------------- --------- -------------------- 2 .746 2,477 132 21 11 6

Austin 11 13'

14 540 4 109

:' '

1 : 5,

14,72 71

:

E3 .71"4

1400

114

503D n ,O - 5 .999 5 .427 B143 46 294Little Rack-------------------------------------- ------- --------------- -No . Ella - ---------------- -- ------------- . . .. . . . . . ----------

4 .15 38 .851

3 .7108 .277

157223

3 857

24'aul

Oklahoma cily-- -------------------- 7 .162 6 .610 249 52 250Wichita. --------------------------- -Sout west ka,pon-C,nualizIll Training --------- --- ------

6 .34 1188 5,608----

23 9L87

66

-- --

4281

Austin S-ic . Cimial ---------------- ---------------- . . . . . . . .West. r :

20 .860 ILBSY 67 ---- -- 1 .789

Anchorage . -------- --------- 340' '1 Il?

21 SIG%a, ----- ------- ------------ -

:2 209 2a 3

sit I21He

mill-- ------ -------------------- ----------- . .. . .. . ... . . . . . . .Harm lulu- ---------------------

2 .21 3

2 '' '

1 :797

2 .650

12 093

30

'2

'65

11016Los A,gO,s- --- 33 : 154 30 130

9N 241

1,299

Pheeni . . . . . . . ------- --------------- ---- -PO

'flind ---------------------------------- - ------- ----------

4 .6745 .854

: ~4 &Z5,320

I6 7223

9339

333Z7 3

Ron-------------------------------------- ------- ----------- 3 .794 3 .163 193 47 391Sall Lake Cit, -------

, ,2 .926 2

'191 20

"1

an: : : : :

S -------seat a . ----------- -it ------ -------------

L, 368 50

7

20 277 .743

724

309

1

E.2I'o

353Wes n in 0l: . Relim at T, m a C. I----------------- 538 324 4 28 183~ ~swe

0 z ad Training . . . ------..

.. . . .

.,do .Scr_a ante r

---------- --------------------------------1

19127,828

jli

189168

283

Fresno Service Centel . . . . . . -------- - ------ - ------ - . . .. ... . . . --- -L'_990 7 :3 1 223

1

49 4,467

Includes $5 .9 ill a, firanced from loinhulsoments .Annaunts shown do not include transfer to GSA lot rent of space amounting to $2 .202,000 .

128 12 9

I

, Table 30.-Obligations Incurred by Internal Revenue Service, by appropriation and activity

Total Perform .] Other

Appropriation by activityand lim1fils

1971 1972 1971 1972 1971 197 2

Total itlifilpfunim, appiritipirlidthm., end reimbursable . . . . . .. . . . . .. . . . . . . . . . 981 .065 1 .127 .391 948.3G2 949,628 132,703 179 .763

Obbrittimi . Al appropriation fund .. . . . . . . . . . . . . . . . _ ------- . . . . . . 975 .725 1 .121 .511 844 .512 3 773 131 213 177 .7 5

Salaries a it esp.....:Total . ... . . . . . . _ ------- . . . ... . . . . . . . . . . .. . . . . . . --------------- 21 .961 31 .901 24.533 27 .419 3 .428 4 .492

E, . .Ii.. din,stio.. . . . . . . . . . . . . . . . . . . . . . ... . . . . . . .. . .. . .. . .. . . . . 11 .903 13,462 10.653 1 1 1 1 111 1 12let I audit ad -wity---------------_---------- --- 16 .053 18 .439 13, SM

5 :759

: 32 11 :2680

Account,, collectims and taxpayer urvitl :l

. 1ot. ---------------- ----------- __ ----_--------_---- 409 .048 471 .623 339,955 377 .396 69,093 94,237

Date moloam, -------------------------------- 22 65 51

277 .406 T80 .023 207,735 47 632 171."his and usp.

-1

:17 1 522

184 .84

7 "1 B137 1

U'H1 :1 13 4

72

S limorting--------------- -District MJPUAI Operations. . . . .. . ... . _ -------------_-------_ - -------

8,901====!!7O

8 .111751

7 1 3

1 .066

5

7 2

'549

1 . 3581 :09,

2

~ompliamce :Total. . . ........... . ..... -------_-----

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

538 71 .

""'

17337 480,024 533 .90 58.692 79 .019

A dit of tax returns .. --- . .. ... . . . .. . ..... 3 7 3 7I 1

.229

____322 513 - 361'

34 624 11 12in, fr. it ---------------qswi.1 im,amuxtxm,. _ . .. . ...... .T

" "~d

5

54 3

,53

46.591 1S3 : at 7 7741 :

139c fiAlcohol, Job n it nuilm, . .. . . ----------------- ----------------

-

Taxpayer cant rees, and,,ppeals . . . ..... ... . -----_-----------

[29 JI

M

59440

0 .273M,9,4

48 .64 227 .259

56. "'28 .71S " 7 "L :101 T'2 .

"1Technical mlings; ad sel-Is . . . ..Legal ------- . .. . ... ....

..

.

14 72

,

23 887

.,7 ,25 .247

13,53621 .483

15 .06623 561

1,1852.404

1 .1 .11 6

Reimbursable obligation, . total ... .. ... . .. ............ ... .

. 5

340

5 .Me

~1 .1150 1 4 .-S 1 . .490 [ .025

Not-Amournts shown do not include transfer to GSA far rest of Pace immunti.9 to SS48 .000 1. 1971 ; $2,202,010 In 1972.

Table 31 .-Quantity and cost statistics for printing

Fiscal year 1971 Fiscal Va ., 1972

Class of workQuantity (thousands)

CostQu"btv (thousands)

CostThousand (thousand

Item. Packages dollars) It-, a, Pecialf. dollars)sets at ,

(1) (2) (3) (4) (5) (6)

1. Tax Packages (1970) :Package I (form 1040, Instructions, Schedules A & 8-24 pages)-_ . . . . 257,10DO 51 .401) 786 --- -------- -- -------- -Package 2 (Form 1040 Schedules A B, D, L & R, and Instructions-40

pzqz,')~ . . . . . . . . . . . . . . . . . . . . . 157 .1500 17, IN 412 ------------ ------------ ----------- -Cj~;Package 3 (Farm 1040. Schedules A B, .

Instructions-56 on . . . . . ---- 1- ----------------------------- -h JF rs i ti 20- 1587 -N125

UT 170I : 465

114 2.,.I ,S, .d. .D~~dP.ck .g~1065( ~,Uu, ~~1- Pli~1) ------- _

3468 . 4626 an dPackax120 Schedule D, Far., I 12D-

WJ 120 (To F

1 '

.~20 and Sch.c..

For ,last'. ion't., 11 1. 0-32 Pat as ------------ _ 220 .001) 2,000 so ------------ ------ ----------- -11 . Tax Peckarea (1971) :

Package I (Farm 1040 Instructions, Schedule, A Is B-281Pages) - -----------

- -------- ------------ 249.700 49 .940 966;;:~ibPackage 2 (Form IUAD Schedules A & B . D, E A, R, and Instruw1W

- ------------11 . . . . . . . . .

-.. . .. . .. . .. 114,525 12,725 43 3

Pack . aand natructions-SIS Pain --- __ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 335 1 2

' ' . ..Pxdk

: ~1`1 , ",b,,fl*n ,-21 age,) ------ -9 1111 ul,""

dto"

: : : : : :------1 :36 WO

1 :700 70Izo ; . . .' : . .

: S a '0

Pack To 11. bad ,Farm 3468. 4626 ad In.structions for form 1120 and Schedule 0-32 pages)_ ----- _ . . . . . . -- ------------ ------------ 220,000 2 .000 92

Ill . Employment TaxPackage :

Pub. 393 'F" .a 70111. 941C, W-2 . 941A, W-4 . W-4E, Schedule A for W-4 .

Pub. 213, and unemployment tax schedule).. . . . . . . . . . . . . . . _ . . . . . . . . 96,140 5~060 1 114

Tax retain, ad imitructierisfol malor nnallmilt . timptiTe-T.ta lOd PF .i l

89 46551 4161 : 09

7 29 :6167G5

a93674 :6292

216810

208

IV. ther ..orms, aI -Use ... . . . . . .on, . Pub a"Ph ets

V . Al.mis',glu-, Instruct ic- Forms and Pamphlets I . . . . . . . . . . . . . . . . . .

'

541 .ODO 2631

,537 .635

. .

3 :900Field Printing----------- . . . . . . . . . . . . . . _ . . . . . . . . . . . 354 21

:1 31 17 1 11 7 1

1Ent," Tax Stamps- -1i_1_ .~__L. . . . . . . . . . . . I -------- -VI All Printing as support Phase of I a camunic Stabilization Program .------

2556 :612

-_ -------

1,195

- --- -

:~ .2 . 262641 .219

:361199

GRAND TOTAL------- . . .. . .. ... .. . . . . . . . . . . . . . . . . . . . . . --- ------- 17,5" _ . . . . . . . . . 19 .952

Includes sembrig to, Phase I of the Economic Stabilization Program .

INDEX National Officers

A

A .t, :Explosives Control Act, 30Federal Alcohol Administration . 21, 22Gun Control ACt-1968, 29

Organized Crime Control ActRevenue Act of 1971, 74, 75

Tax Reform Act, 1969AOP processing, 74 . 75, 76, 77

Advisory committees, 13Alcohol and tobacco tax:

Advertising, 2 2Chemical analysis and research, 23E momement activitY, 22Elabljshrmmts ~

rispection of, 23

Industry circulars, 22Label circulars, 22

Operation Dry-Up, 22Prosecution, 22

Publications, 22R egulations, 22 . 23Seizures and arrests, 22

Supervision on-premiseS, 21Statistics on, 21

Appeals:

A p Ilate division, 14, 15

P C 'Chart on, 15Processing of, 15

Statistics on, 1 5Appendix, 8 9A sessment additional, 20. 21A: sistance:

Foreign tax, 44-47On-Site, 46

Overseas, 44-46Taxpay-s. 2-7

Audit exempt organizations . 1 3

B

Bulletin . Internal Revenue, 6

C

Ch .Orgainiration, 82

Chief Counsel, Office ofAnalysis of cases flowing through, 50-53Cases involving criminal prosecution, 19Dispoeizals of cases by, 1 9Civil litigation, 51, 5 2Colienction litigation legal servic~S (See

General Litigation Services)Coilections :Alcohol taxes, 74Corporation income taxes, 74Disability and old,age insurance, 74Employment taxes. 74Estate and gift texas, 74

Excise taxes, 74Individualmin-me taxes, 74

Old-age and disability insurance, 74Railroad retirement, 7 4Tobacco taxes, 74Unemployment insurance, 74Withholding taxes, 74

Commissioner:Contest of slill, 14C

ommissionersat

Untemal Revenue, 88r'Onspatent authority activity, 42, 43Conference:

Appellate, 14, 15, 16Pmcedures, 14, 15

Cooperation, Federal-tax, 44, 45

Conventions, tax (See tax conventions)Coordination and cociptnartian with our .. . S

and agencies, 44Corporation income taxes, 74

Additional assessments Proposed, 10Collections, 74Refunds, 75

Returns

Exarnintnill, 10Filed, 76

Statistics an Courts), 51Circuit courts of appeals, 51Of Claims, 51

Supreme, of the United States, 5 1The Tax Court of the United States, 50,

51U .S. District, 51

Criminal prosecution :

Analysis of Cases, 19

Casies, di.pos .ls of, 19Results of, 19

Current research program, 56-58

El

Data Processing activities, 74-77Delinquent accounts :

Disposal., 16Other, 16

Statistics on, 16in I. tDelinquent ratyrn, ad ch.liqueney

I vers go onsAddi tional tax from. 16, 17Analysis at, 16. 17Statistics an, 16

Determination letters :Employee benefit plans. 7

Exempt organizations, 13Pension trust plans, 7

Self-employed Persions benefit plans,

16, 1 1Supti .fic,s on, 17.i.sigUity insurance taxes:

Collection, 74Refunds, 75

Disciplinary actions, 68-72Dias.riminant function, 1 1

E

Economic Stabilization Actiliti-, 33Employment benefit plane, clet-mirt .tion

attare on . 7, 13, 16, 17

Employment taxes:CollaCtions, 74

Refunds of, 75Returns :

Examined, 10-12Filed, 7 6

Enforcement activities

Additional tax from, 10-12Alcohol and tobacco tax an d

22, 23, 29, 30Appeals.

1 4Delinqeunt accounts, 15

Delinquent returns, 17Examination Program, 10-12

Mathematical verificotion, 78Tax traud investigations, 17, ISWorkflow in Service and the coruts . 21

Estate ta .z

Collections, 74Refunds of . 75Returns :

Examined, 10-12

I'lliscl, 76

130 131

Estimated tax, declarations ofCorporation, 7 6Individual, 76

Examination program:Classification and selection of returns,

1 1.turns examined, number of, 10Tax recommended, additional, 10

E.O. ..

."!Additional assessments, 10Collections, 74

Refunds of, 75Returns filed, 76

Exempt organizations :Determination letters on, 7Master file, 13

F

F :dd:M: fi-mus regulations, 29, 30F . -State Cooperatio nA,gm,m

.nt ., 57Audit coverage, 10-13

Comptuar-Information exchange, 79Training, 72

File;

E mpt organization master file, ~3

x"Federal tax deposit system, 16Financial management

Statistics on, 64

Firearms progra mCri me control.29-31

Foreign investors, 43, 44Foreign tax assistance program, 46, 47

F reign tax officials assistance to, 44-47Forms and form letters, go- .4Fraud investigations, 19

G

General Litigation Legal Services, 53Gift It. . a :

C-1lecti.ns, 74

Refunds of, 7

Returns filed, 7 6

income taxies) ~ ~- ~ . :.Additiona

1,from enforcement, 20 -

All returns, 76corporation . 76Processing of protested cases, 14, 15

Indiethlents, 18-2

Ind ividual income taxes:Appel late Division, processing of, 14, 15

Collection ., 74Mathemati~sl verification of, 78

R funds of, 7 5R:turn5 :

Cl ssificallon and examination of, 11FIZ, 7 6

I.M.nnniplit ..clitntsiati ng taxpayers, 2-7spection act vities :~nter.t auditi&S-70nto no Sec

.'

ty, 691

nvestige tion, 69, 70Statistics on, 70-72Int.1lig cStonn a Division

tics on, 19, 20Tax fraud investigation, 19

inter-American Center of Tax Administm-tons, 47Intematione

I tax training' 46,47Interpretative activities,53,

54

132

Joint Committee on Internal Revanue taxa .I,an, 1 2

LaboratoriesT-stin& 2 2

Less

I .

ctivitles, 4 9L-si :ative activities, 49Logi : ation :

Firearms 29-3 1

MI

M gnatic Tape, 79M:nagement activities, 63Map of in ornal revenue regions and dis-

trictS, 83Mathematical verification:

Additional tax from, 78Statistics on, 7 8

0

Obligations incurred, internal Revenue

Service, 64Officers, principal, Internal Revenue

Service, 8 4op :mlion Dry-UP, 22Do rating Financial Plan, 640

rganized Crime Drive, 25-29

P

Pension trust plans, is, 17Personnal t

Equa a mployment program, 67Handicapped; use 'f, 64-66'.v

.atlgPti.na, 69- 70

Recruitment, 64Statistics on, 64

Planning activities, 55P

rPVa .$ :

Foreign tax assistance, 46, 47Identify U .S. taxpayers, 41, 42

Overseas taxpayer -ompliance, 41-43g1riIc.1.rces,25-2

:'Taxpayer axsl,lanca, 2-7Orb.

. .,i .P19 .28

Pretested cases, statistics on, 15Pub :ic information pmgmm, IPub

ications, taxpayers, go

R

Railroad retirement taxes, 74Recruitment, 64Refundsi

Excessive prepayments, 75Statistics on, 75Undeliverable, 75

Regulations :Alcohol and tobacco taxest, 22, 23Other, 22, 2 3Selected regulations; published, 6

Request...

Technical Advice, 6Revenue Rulings, analysis of, 6

It atul., filed :

Classification and selection of, 11

Examination of, 10~12Number examined, 30-12Projection, 6 1

Statistics on, 61Verification, 78

Self-employed persons benefit plans, de .termination letters on, 16,'1 7

S :minar, Inter-American, 47S nice to taxpayaM,2-7Statistics, highlights, 59Statistic, of income relea 5Supervision of the Alcohra.n~ tobacc o

industries, 22SUPMme Court Decisions :

Civil cases, 94Other court actions, 94

T

Tax conventions, 41-43Tax to 'ns, 9

2Taxes. AdditionalFrom delinquent returns secured, 16, 17

From enforcement, is, 1 7From examination, 16, 17From mathematical verification, 26, 1-7

Taxpayer assistance program, 2-7Tax ruling$

Request for, 6Statistics on, 6

Tobacco tax(es) :Arrest,, 22Collections, 74Refunds

of. 76

Results of Criminal action, 22Returns

fil adSeizures, 22

Statistics on, 22Training

~Foreign, 46, 47Other, 67

Ll

Unemployment insurance taxes :

Co Jections, 74RZurids-of, 76

Returns filed, 75

V

Verification, mathematical, results of, 7 8

W

Wines, taxes collected, 74 -

Withholding texas by ernplogr, 74Workflow in service and the ourts, 21

U. S. Gon'- ImurTclo OFF= : -s . ~ --

Corporatitiri'Statls`tYo_& jjStatistics Divis1ou .=,ld;'